Notes to the consolidated financial statements
106 Financial statements
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 Group (excluding amounts attributable to minority interests).
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. Heineken considers this
a legal reserve.
Fair value reserve
This reserve comprises the cumulative net change in the fair value of available-for-sale investments until
the investment is derecognised or impaired. Heineken considers this a legal reserve.
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 earnings of joint
ventures and associates minus dividends received.
In case of a legal or other restriction which causes that retained earnings of subsidiaries cannot be freely
distributed, a legal reserve is recognised for the restricted part.
Reserve for own shares
The reserve for the Company's own shares comprises the cost of the Company's shares held by
Heineken. As at 31 December 2007, Heineken held 800,000 of the Company's shares (2006: 410,000).
Dividends
The following dividends were declared and paid by Heineken:
In millions of EUR
2007
2006
Final dividend previous year €0.44, respectively €0.24 per qualifying ordinary share
Interim dividend current year €0.24, respectively €0.16 per qualifying ordinary share
215
118
118
78
Total dividend declared and paid
333
196
As approved during the Annual General Meeting of Shareholders in April 2007, Heineken renewed its
dividend policy by reinforcing the relationship between dividend payments and the annual development
of net profit before exceptional items and amortisation of brands. Heineken's dividend policy targets a
payout of 30 to 35% of net profit before exceptional items and amortisation of brands.
After the balance sheet date the Executive Board proposed the following dividends. The dividends, taken
into account the interim dividends declared and paid, have not been provided for.
In millions of EUR 2007 2006
€0.70 per qualifying ordinary share (2006: €0.60)343 294
Prior-year adjustments in 2006
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 was recognised in equity in 2006.
Heineken N.V. Annual Report 2007
