Report of the Executive Board
Financial review
continued
Purchase of property, plant and equipment was on a slightly lower level compared to 2005. Proceeds
from the sale of property, plant and equipment amounted to €182 million versus €151 million in 2005.
A net amount of €72 million in 2006 was invested in acquisitions and expansion of existing interests,
compared to €460 million in 2005. In 2005 we invested €730 million of which €530 million in Russia. As
part of the divestment of non-core assets we sold amongst others our real estate business in Austria,
which resulted in a total cash inflow of €270 million in 2005.
Net cash flow increased strongly to €401 million compared to €86 million in 2005. This was mainly due
to the decline in cash flow from acquisitions amounting to €388 million. This decline was partly offset
by higher cash flow from financing activities of €57 million, largely due to higher dividend payments
of €23 million and purchase of own shares of €14 million in connection with our long-term incentive
plan for our Executive Board and Senior Management.
Financing structure
In millions of EUR 2006 2005
Total equity 5,520 42 4,514
Deferred tax liabilities 471 4 393 3
Employee benefits 665 5 664 6
Provisions 242 2 273
Other liabilities6,099 47 5,985 51
12,997 100 11,829 100
Total equity
as a percentage of total assets
2002
2003
2004
2005
2006 I
Wm 38.9
I 35.8
34.6
38.2
42.5
Gearing
Net debt as a percentage of Shareholders' equity
2002
2003
2004
2005
2006 I
52.7
74.0
84.8
66.7
40.0
C/1 Heineken N.V.
0*T Annual Report 2006