2001 Financial Developments the year, we increased our interests in Zywiec, Poland, from 51.6% to 61.8% and in Heineken Espana from 80.9% to 97.2%. Disposals included several non-core activities of the DB Group, in New Zealand, including Corban Wines, and the non-alcoholic beverages activities of SP Holdings in Papua New Guinea. The 49.9% participating interest in BrauHolding International, in Germany, a joint venture bet ween Heineken N.V. and Bayerische BrauHolding AG, was carried at net asset value in the balance sheet as at 31 December 2001. The company will be fully consolidated as from 1 January 2002. Operating expenses rose by 12% to EUR 8,038 million, a considerable proportion of this increase being accounted for by the new consolidations. The price of raw materials and the cost of packaging rose by more than 4%, but ener gy costs remained steady. Higher sponsorship and adverti sing activities to strengthen our brands and market posi tions led to a 16% increase in marketing and selling expenses to EUR 1,281 million. Expressed as a proportion of net turnover, marketing and selling expenses amounted to 14.0%, compared with 13.7% in 2000. As from the beginning of 2001, investments in major ICT projects satisfying certain criteria laid down in the Guidelines for Annual Reporting in the Netherlands have been capitalised with amortisation taking place over three years. Costs not qualifying for capitalisation in 2001 have been included in staff costs and other expenses, and amounted to around EUR 40 million more than in 2000. Staff costs were also increased by the first-time consolida tions. Additions to the provisions for staff schemes were on a par with last year's level, while extra write-downs due to value adjustments were lower than in 2001. 2000 Change Turnover and costs in millions of euros Net turnover 9,163 8,107 13 Raw materials, consumables and services 4,919 4,324 14 Excise duties 1,226 1,093 12 Staff costs 1,417 1,301 9 Amortisation/depreciation and value adjustments 476 468 2 Total operating expenses 8,038 7,186 12 Operating profit 1,125 921 22 REPORT OF THE EXECUTIVE BOARD Net turnover in billions of euros Spirits and wines 0.4 Soft drinks 0.9 Beer 7.6 Other income 0.3 Net turnover and cost of sales Net turnover in 2001 was up by 13%, or by more than EUR 1 billion, at EUR 9,163 million. First-time consolidations accounted for 6% of this increase, with the appreciation of the US dollar against the euro resulting in increase of 2%. Organic growth in net turnover amounted to 5%, with 4% accounted for by improved selling prices and a better sales mix and 1% due to higher sales volume. The most significant change in the consolidation concer ned Nigerian Breweries, in Nigeria. This company, in which we increased our interest to 54.2% in the course of 2000, has been fully consolidated with effect from 1 January 2001. In 2000, the then 43.3% interest in Nigerian Breweries was included at net asset value. Owing to the increase in the interest in Affligem Brouwerij BDS, in Belgium, to 95.7%, this participating interest has likewise been fully consolidated with effect from 1 January 2001. A number of beverage wholesalers in Italy and France have also been included in the consolidation. And during 45

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2001 | | pagina 51