77.
1. Segment reporting
Segment information is presented in respect of Heineken's geographical segments. The primary format,
geographical segments, is based on Heineken's management and internal reporting structure.
Segment capital expenditure is the total cost incurred during the period to acquire segment assets that
are expected to be used for more than one period.
G< ographical
Heineken comprises the following geographical segments:
Western Europe
Central and Eastern Europe
The Americas
Africa and the Middle East
Asia-Pacific
In presenting information on the basis of geographical segments, segment revenue is based on the
g ographical location of customers. Segment assets are based on the geographical location of the assets.
P ofit has been presented unallocated since items like net financing expenses, deferred tax results and
s /eral other items are subject to judgemental allocation. Corporate expenses are included in Western
Europe.
iness segments
A almost the entire revenue of Heineken is accounted for by just one product group, namely beer, the
f ancial information is segmented by geographical area only. The remaining activities are not reported
s )arately on a segment bases as risks and rewards are not significantly different. Our segment reporting
i ully in line with our internal management information structure. Revenues and results are allocated to
t a region where the product is sold to the customer. Export revenues and results are also allocated to
2 regions. Most of the production facilities are located in Europe. Sales to the other regions are charged
a transfer prices with a surcharge for cost of capital.
Heineken N.V. - Annual Report 2005
