Financial review
2000
1999
General The preparations for the introduction of the euro are proceeding according to plan in all parts of
the organization.
In order to give a better view of the Group's activities, it has been decided to provide information
by segment as of the beginning of the 2000 financial year. Because only one group of products,
namely beer, accounts for more than 80% of the Group's net turnover, financial information has
been segmented by geographical area alone. As nearly all production facilities for exports are
located in Europe, the results of these operations are accounted for under Europe.
Net turnover
in billions of euros
Beer 6.5
Spirits and wines 0.4
Soft drinks 0.9
Other income 0.3
Net turnover and operating expenditure
Net turnover amounted to EUR 8,107 million in 2000, representing an increase of EUR 959 million,
over 13%, compared to 1999. 7% of this growth was the result of the first time consolidation of a
number of companies. Higher selling prices and an improved sales mix resulted in an increase of
3%, while increased sales volumes accounted for a rise of 2%. The remaining increase (1%) in net
turnover was due to a more favourable exchange rate of the US dollar against the euro.
The most important change in the consolidation related to Grupo Cruzcampo in Spain, which was
fully consolidated as of 1 February 2000. Cruzcampo has merged with El Aguila to form the new
Heineken Espana company, in which we hold a 80.9 interest. In addition, Gemer and Martiner
in Slovakia, Affligem in Belgium (proportionally), as well as a number of beverage wholesalers in
Poland, Italy, France and Switzerland have been consolidated.
Turnover and costs
Change
in millions of euros
Net turnover
8,107
7,148
13
Raw materials, other materials and services
4,324
3,805
14
Excise duties
1,093
984
11
Personnel costs
1,301
1,132
15
Depreciation and value adjustments
468
428
9
Total operating expenditure
7,186
6,349
13
Operating profit
921
799
15
HEINEKEN N V. ANNUAL REPORT 2000
43