11
Definitions
of terms and phrases used
in this report
Glossary
BEIA
Before exceptional items and amortisation
of brands.
CAPEX
Capital expenditure on property, plant and
equipment.
Cash conversion ratio
Free operating cash flow/Net profit (beia)
before deduction of minority interests.
Depletions
Sales by distributors to the retail trade.
Dividend pay out
Dividend as percentage of net profit.
Earnings per share
Net profit divided by the weighted average
number of shares - basic - during the year.
EBIT
Earnings before interest and taxes and net
finance expenses.
EBITDA
Earnings before interest and taxes and net
finance expenses before depreciation and
amortisation.
Effective tax rate
Taxable profit adjusted for share of profit of
associates, dividend income and impairments
of other investments.
Fit2Fight
Cost saving programme aimed at reducing
the fixed cost base versus 2005 by €450 million
by 2008.
Fixed costs ratio
Fixed costs under Fit2Fight as a per centage
of revenue.
Free operating cash flow
This represents the total of cash flow from
operating activities, and cash flow from
operational investing activities.
Gearing
Net debt/shareholders' equity.
Net debt
Non-current and current interest-bearing loans
and borrowings and bank overdrafts less
securities and cash.
Net interest cover
EBITDA/Net interest expenses.
4 QO Heineken N.V.
iJO Annual Report 2006
