70 Heineken N.V. Annual Report 2004 Report of the Executive Board Governance
Capital availability
Sufficient generated capital is needed to finance long-term growth and to keep pace with the
consolidation of the global beer market.
Strong cost and cash management and strong controls over fund applications are in place to
ensure effective and efficient allocation of resources. Financing strategies are under continuous
evaluation.
Tax
Heineken and its operating companies are subject to a variety of local excise and other tax regula
tions. In principle, Heineken's sales prices are adjusted to reflect changes in the rate of excise duty,
but increased rates may have a negative impact on sales volume.
Compliance risks
Emerging legislation
Due to increasing legislation, supervision and claim culture, both international as local, there is a
growing possibility of non-compliance, which could result in claims or penalties and could have
a negative effect on the Company's reputation.
Relevant corporate departments and operating companies have put strong policies and
procedures in place, or these are being established.
There may be current risks that the Company has not fully assessed, and are currently identified
as not having a significant impact on the business but which could - in a later stage - develop a
material impact on the Company's business. The Company's risk management systems are focused
on timely discovery of such incidents.
