Notes to the Consolidated Balance Sheet, Statement of Income and Cash Flow Statement for the Financial Year 1999 General The financial statements and annual report are subject to Title 9, Book 2 of the Netherlands Civil Code. Several changes took place in the consolida tion during the financial year. The most important changes in regard to the financial statements were as follows. The company Zywiec, Poland, that was consolidated as ofjune 1,1998 is now consolidated for a full year. Brewpole, Poland, now part of the Zywiec Group, was fully consolidated as per January 1,1999. Effective January 1,1999 Pivara Skopje, Macedonia (25.2%) and Shanghai Mila Brew, China (32.4%) were proportionally (50%) consolidated. Brasseries du Logone, Chad (100%) was fully consolidated as of July 1,1999. In addition a number of beverage wholesalers was taken into consolidation. These changes resulted in an increase in net turnover of EUR 516 million and in a goodwill charge of EUR 106 million to shareholders' equity. The financial data of Heineken N.V. are incorporated in the consolidated balance sheet and statement of income. Consequently, a simplified presentation has been effected for the profit and loss account of Heineken N.V., as enabled under the provisions of Article 402, Title 9, Book 2 of the Netherlands Civil Code. The amounts stated in the notes are in millions of euros, 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 ifthe activities of the participations concerned are closely linked with those of the Heineken Group. Under the heading "Changes in the consolidation" the following statements ofthe movements ofvarious assets and liabilities show the movements which relate to the increase in or reduction of our interests in consolidated participations. Translation offoreign currencies Amounts in foreign currency have been translated at the rates of exchange on the balance sheet date. Hedging transactions are concluded exclusively for the limitation offoreign exchange risks on receivables and debts and on cash flows in foreign currencies which are very likely to recur on a regular basis. Forward transactions and options are used to this end. Before hedging, the incoming and outgoing cash flows in given currencies are netted centrally as far as possible. Where forward exchange transactions are concluded to hedge positions in foreign currency, those positions are translated at the rate of exchange at which they were hedged. The recognition of gains and losses arising from the translation of transactions entered into for the purpose of hedging future cash flows is deferred until the time when the relevant cash flows are accounted for. Commercial transactions in the statement of income denominated in foreign currencies are booked at the spot rates or forward rates where forward contracts are closed in regard to these transactions. Differences in value arise as a result ofthe translation into euros ofthe shareholders' equity ofthe foreign consolidated participations at the beginning of the financial year and ofthe intra Group financing furnished to these participations. These differences are regarded as a revaluation and are credited or debited to the Group funds, taking into account the possible levying of taxation. Other differences connected with changes in rates of exchange are incorporated in the statement of income. H E I N E K F I N A N C S T A T E M 19 9 9 49 EN N. V. I A L E N T S

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 1999 | | pagina 50