49
A total amount of €64 million is recognised on EBIT level, relating to impairments of goodwill, brands
and property, plant and equipment.
€40 million relates to our joint venture, Brau Holding International in Germany, of which €36 million
relates specifically to Karlsberg Brewery in which BHI holds a 45% stake, and the remaining 55% is held
by Kulmbucher Brauerei A.G., and is treated as an exceptional item. Volume and long-term profitability of
Karlsberg Brewery was severely affected by the introduction of a deposit on one-way pack types and the
nse of input costs. By the end of 2007 management of Karlsberg was taken over by an experienced turn-
ound manager from the Heineken Group.
ther impairments relate to various other entities, across various regions and are individually small and
ierefore not treated as exceptional items.
3IT as a proportion of revenue decreased to 12.2 per cent from 15.5 per cent, mainly due to
orementioned exceptional items.
he average tax burden increased significantly from 22 per cent in 2006 to 31.7 per cent in 2007. In
)06 the average tax rate was positively affected by the low rate of tax on the sale of real estate in
jain. In 2007 the average tax rate was negatively impacted by the European Commission fine, which
treated as non-deductible. Without these exceptional tax gains, the tax burden would have been 26.2
er cent compared with 27.2 per cent in 2006.
asic earnings per share decreased from €2.47 to €1.65 as a result of lower net profit,
ish flow
millions of EUR 2007 2006
ash flow from operating activities
1,730
1,849
ash flow used in operational investing activities
(985)
(727)
ee operating cash flow
745
1,122
ash flow used for acquisitions and disposals
(278)
(72)
sh flow from financing activities
(656)
(649)
t cash flow
(189)
401
ish flow and investments
ash flow from operating activities is below last year's performance with €119 million, mainly driven
the EC fine influencing profit, an increase in working capital investments of €177 million and higher
ïanges in provisions of €50 million due to the restructuring activities in Western Europe, partly
mpensated by €42 million less interest paid.
jrchase of property, plant and equipment was on a higher level compared with 2006, due to
celerated investments in capacity expansion mainly in Central and Eastern Europe and Africa and
ddle East. Proceeds from the sale of property, plant and equipment amounted to €81 million versus
82 million last year, mainly due to the aforementioned sale of land and brewery site in Seville, Spain.
Heineken N.V. Annual Report 2007
