Notes to the Consolidated Balance Sheet,
Profit and Loss Account and Cash Flow Statement for 2001
General
The financial statements and the report of the Executive
Board have been prepared in accordance with the provi
sions of Part g, Book 2, of the Netherlands Civil Code.
There were a number of changes in the scope of the
consolidation during the year, the following being the
more significant of these with regard to the financial state
ments.
Nigerian Breweries, in Nigeria, in which the interest has
been increased to 54.2%, 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 have also been
included in the consolidation. Several non-core activities
of the DB Group, in New Zealand, including Corban Wines,
have been sold off. In Papua New Guinea, the non-alcoholic
beverages activities of SP Holdings were also disposed of.
The 49.9% participating interest in BrauHolding
International, in Germany, a joint venture between
Heineken International B.V. and Bayerische BrauHolding
AG, acquired in February 2001, was carried at net asset val
ue in the balance sheet as at 31 December 2001. With effect
from 1 January 2002, the joint venture will be proportional
ly consolidated, with Heineken sharing in the results as
from that date.
The changes had the effect of increasing net turnover
by EUR 456 million and resulted in a goodwill charge
against group equity of EUR 320 million.
The financial information relating to Heineken N.V. has
been included in the consolidated balance sheet and profit
and loss account. The abridged presentation permitted by
Section 402, Part 9, Book 2, of the Netherlands Civil Code
has accordingly been used for the Heineken N.V. profit and
loss account.
The amounts disclosed in the notes are in millions of
euros unless otherwise indicated.
Consolidation principles
Heineken N.V. and the subsidiaries with which it forms a
group are fully consolidated in the consolidated balance
sheet and profit and loss account, with minority interests
in group equity and group profits shown separately.
Proportional consolidation is applied in the case of com
panies in which the Heineken group has a direct interest
and exercises a controlling influence on management
decisions in partnership with other shareholders and
whose activities are closely related to those of the
Heineken group.
In the analyses of movements in various assets and lia
bilities, disclosures of'changes in the consolidation' relate
to increases or decreases in the group's interests in consol
idated companies.
Foreign currency
Hedging transactions are entered into only to limit
exchange risks in respect of actual amounts receivable
and payable and highly probable future cash flows in for
eign currencies. The instruments used are forward
contracts and options. Before such contracts are entered
into, inward and outward cash flows in a particular curren
cy are netted off at group level as far as possible. Where
foreign currency balance sheet positions have been
hedged, they are translated at the exchange rate of the
hedge. Recognition of results arising from hedging opera
tions relating to future foreign currency cash flows is
deferred until the relevant cash flows are accounted for.
Other foreign currency transactions in the profit and loss
account are recognised at spot rates unless forward con
tracts have been entered into in connection with these
transactions, in which case the forward rate applies.
The financial statements of non-eurozone companies
are translated into euros. Assets and liabilities are translat
ed at exchange rates on the balance sheet date. Profit and
loss account items are translated at the average monthly
exchange rates. The difference between the net profit
based on average exchange rates and the net profit based
on the exchange rates as at balance sheet date is account
ed for in the revaluation reserve. The profit and loss
accounts of companies in hyperinflation countries are
translated at exchange rates prevailing on the balance
sheet date.
The translation into euros of the opening balance of the
shareholders' equity of the non-eurozone consolidated
companies plus intra-group loans granted to these compa
nies gives rise to translation differences. These differences
are treated as revaluations and are credited or debited
directly to group equity, with due allowance for taxation.
Other differences due to exchange rate movements are
accounted for directly in the profit and loss account.
FINANCIAL STATEMENTS 2001
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