Financial Statements continued
Notes to the consolidated financial statements
continued
22. Total equity
Translation reserve
The translation reserve comprises foreign currency differences arising from the translation of the
financial statements of foreign operations of the Company (excluding amounts attributable to minority
interests).
Other legal reserves
These reserves relate to the share of profit of joint ventures and associates over the distribution of
which Heineken does not have control. The movement in these reserves reflects retained profits of
joint ventures and associates minus dividends received.
Hedging reserve
This reserve comprises the effective portion of the cumulative net change in the fair value of cash flow
hedging instruments where the hedged transaction has not yet occurred.
Fair vale reserve
This reserve comprises the cumulative net change in the fair value of available-for-sale investments
until the investment is derecognised.
Reserve for own shares
The reserve for the Company's own shares comprises the cost of the Company's shares held by
Heineken. At 31 December 2006 Heineken held 410,000 of the Company's shares (2005:
nil).
Dividends
The following dividends were declared and paid by Heineken:
In millions of EUR
2006
2005
Final dividend previous year €0.24 per qualifying ordinary share
118
118
Interim dividend current year €0.16 per qualifying ordinary share
78
78
Total dividend declared and paid
196
196
The Company intends to renew its dividend policy which will be applicable to the dividend for the
financial year 2006. The proposal is subject to approval at the Annual General Meeting of shareholders
of Heineken N.V. in April 2007.
After the balance sheet date the Executive Board proposed the following dividends. The dividends have
not been provided for.
In millions of EUR 2006 2005
€0.60 per qualifying ordinary share (2005: €0.40) 294 196
Prior-year adjustments
In 2006, BHI recognised IFRS transitional adjustments, which should have been reflected in the
2004 Heineken IFRS opening balance sheet. The prior year estimation error, with a negative impact
of €10 million, is not considered material and is recognized in equity in 2006. Comparatives have
not been restated.
23. Earnings per share
Basic earnings per share
The calculation of basic earnings per share at 31 December 2006 was based on the profit attributable
to ordinary shareholders of the Company (net profit) of €1,211 million (2005: €761 million) and a
weighted average number of ordinary shares outstanding during the year ended 31 December 2006
of 489,712,594 (2005: 489,974,594). Basic earnings per share for the year amount to €2.47.
A Heineken N.V.
J.UVJ Annual Report 2006