During the year ended 31 December 2006, €133 million (2005: €126 million) was recognised
as an expense in the income statement in respect of operating leases and rent.
Other off-balance sheet obligation include mainly rental, service and sponsorship contracts.
Committed bank facilities are credit facilities on which a commitment fee is paid as compensation for
the bank's requirement to reserve capital. The bank is obliged to provide the facility under the terms
and conditions of the agreement.
In relation to the sale of a brewery site in Seville, Spain, Heineken Espana received bank guarantees
from several banks to cover deferred payments by the buyer, due in November 2007 and March 2008.
32. Contingencies
Netherlands
Heineken Nederland, among some other brewers operating in the Netherlands, received a statement of
objections from the European Commission in 2005, claiming that these brewers entered into concerted
p actices restricting competition in the Dutch market in the period 1995-1999. Heineken is challenging
the allegations of the European Commission and submitted its defence on 24 November 2005. A ruling
from the EC is expected during 2007.
U >A
H 'ineken USA and Heineken N.V. (and in certain cases other Heineken companies and Heineken Holding
N V.) have been named as defendants in purported 'class action' lawsuits filed in nine states. The
If A/suits claim that Heineken companies, along with other producers and distributors of alcohol
b verages, have unlawfully advertised and marketed its products to underage people. Heineken is
d Tending vigorously against these accusations, as Heineken companies advertise and market their
p oducts lawfully to people of legal drinking age.
S nee 2005 six of the lawsuits were dismissed. Notices of appeal have been filed by plaintiffs.
3 Related parties
l< entity of related parties
I- eineken also has a related party relationship with its associates (refer note 15), joint ventures (refer
n >te 35), Heineken Holding N.V., Heineken pension fund and with its Executive Board and the
S ipervisory Board.
t >ard remuneration
lr millions of EUR
2006
2005
E .ecutive Board
ipervisory Board
7.5
0.4
16.7
0.3
7.9
17.0
I ecutive Board
1 ie remuneration of the member of the Executive Board comprises a fixed component and a variable
c bmponent. The variable component is made up of a Short-Term Incentive Plan and a Long-Term
I centive Plan. The Short-Term Incentive Plan is based on an organic profit growth target and specific
ar targets as set by the Supervisory Board. For the The Long-Term Incentive Plan we refer to note 27
f id the separate remuneration report on page 62.
at 31 December 2006 and as at 31 December 2005, the members of the Executive Board did not
>ld any of the Company's shares, bonds or option rights, other then under the Long-Term Incentive
F an aforementioned. One of the Executive Board members held 3,052 shares of Heineken Holding N.V.
at 31 December 2006 (2005: 790 shares).
Heineken N.V. A A A
Annual Report 2006 XXX