Notes to the
Consolidated Balance Sheet,
Statement of Income and
Statement of Cash Flows for
the financial year 1995
General
The provisions of Title 9, Book 2 of the Netherlands Civil Code,
are applicable to the annual accounts and the annual report.
During the financial year a number of changes took place in the
consolidation. The principal changes within the framework of
the annual accounts are mentioned below.
The company Interbrew Italia, in Italy, in which a 100%
interest was acquired, has been consolidated as from March 1,
1995. Zagorka Brewery in Bulgaria (43.2%) has been 50%
proportionally consolidated as from January 1, 1995.
The DB Group in New Zealand and Brasseries du Congo,
which were consolidated in the course of 1994, have now been
included for a full financial year. In addition there was an
expansion of interests in drinks wholesalers. In Singapore the
holding in a property company has been sold. These changes
resulted in an increase of some NLG 345 million in net
turnover.
The financial data of Heineken N.V. are incorporated in the
consolidated balance sheet and statement of income.
Consequently, for the profit and loss account of Heineken N.V.
use has been made of the possibility of a simplified presentation
in accordance with Article 402, Title 9, Book 2 of the
Netherlands Civil Code.
The amounts stated in the notes are in thousands of guilders,
unless indicated otherwise.
Basis of consolidation
In the consolidated balance sheet and statement of income
Heineken N.V. and its subsidiaries, with which Heineken N.V.
constitutes a group, are shown as fully consolidated. The
minority interests in the Group funds and in the Group profit
are indicated separately.
Proportional consolidation takes place in the case of
participations in which the Heineken Group has a direct
interest and, in co-operation with other shareholders, exercises
control with regard to management policy if the activities of the
participations concerned are closely linked with those of the
Heineken Group.
Under the heading 'Changes in the consolidation' the following
statements of the movements of various assets and liabilities
show the movements which relate to the increase in or
reduction of our interests in consolidated participations.
Translation of foreign currencies
Amounts in foreign currency have been translated at the rates of
exchange on the balance sheet date or at the EMS central rates
if a narrow band is applicable within the EMS to the currency
of the countries concerned. If forward exchange transactions
are concluded to hedge positions in foreign currency, these
positions are translated at the rate of exchange at which they
were hedged. The recognition of gains and losses arising from
the translation of forward exchange transactions entered into
for the purpose of hedging future outstanding cash flows is
deferred until the time when the relevant cash flows are
accounted for.
Differences in value arise as a result of the translation into
guilders of the shareholders' equity at the beginning of the
financial year of the foreign consolidated participations and of
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