87
5. Segment reporting
General
Segment information is presented only in respect of geographical segments consistent with Heineken's
management and internal reporting structure. Over 80 per cent of the Heineken sales consist of beer.
The risks and rewards in respect of sales of other beverages do not differ significantly from beer, as such
no business segments are reported.
Heineken has multiple distribution models to deliver goods to end customers. Deliveries are done in
some countries via own wholesalers, in other markets directly and in some others via third parties. As
such distribution models are country-specific and on consolidated level diverse. Therefore the results
and the balance sheet items cannot be split between types of customers on a consolidated basis. The
various distribution models are also not centrally managed or monitored. Therefore no secondary
segment information is provided.
Geographical segments
In presenting information on the basis of geographical segments, segment revenue is based on the
geographical location of customers. Export revenue and results are also allocated to the regions. Most
of the production facilities are located in Europe. Sales to the other regions are charged at transfer prices
with a surcharge for cost of capital. Segment assets are based on the geographical location of the assets.
Heineken distinguishes the following geographical segments:
e Western Europe
Central and Eastern Europe
The Americas
Africa and the Middle East
Asia Pacific
Head Office/eliminations
Heineken N.V. Annual Report 2007
