Glossary
Definitions of terms and phrases used in this
report
154 Other information
Beia
Before exceptional items and amortisation
of brands.
Cash conversion ratio
Free operating cash flow/Net profit (beia)
before deduction of minority interests.
Depletions
Sales by distributors to the retail trade.
Dividend payout
Proposed dividend as percentage of net
profit (beia).
Earnings per share
Basic
Net profit divided by the weighted average
number of shares - basic - during the year.
Diluted
Net profit divided by the weighted average
number of shares - diluted - 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 under Fit2Fight
Fixed costs under Fit2Fight include personnel
costs, depreciation and amortisation, repair
and maintenance costs and other fixed costs.
Exceptional items are excluded from these costs.
Fixed costs ratio
Fixed costs under Fit2Fight as a percentage
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
investments held for trading and cash.
Net profit
Profit after deduction of minority interests (profit
attributable to equity holders of the Company).
Organic growth
Growth excluding the effect of foreign
exchange rate movements, consolidation changes,
exceptional items, amortisation of brands and
changes in accounting policies.
Heineken N.V. Annual Report 2007