NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED HEINEKEN N.V. ANNUAL REPORT 2( 08 24. Loans and borrowings To finance the acquisition and to replace existing loans and borrowings of S&N, Heineken entered into an Acquisition Credit Facility of £3.85 billion ('S&N acquisition facility') with a consortium of nine banks. The S&N acquisition facility was reduced during the year, and as at 31 December 2008, the facility was fully drawn with £480 million and €3,560 million (in total €4,064 million) drawn under two tranches. A one-year tranche with an extension option to two years (€1,144 million) and a five-year tranche of €2,920 million. Interest is based on Libor/Euribor plus a margin. The S&N acquisition facility is denominated in British Pound. If the amounts denominated in another currency would exceed a certain British Pound threshold, measured on a recurring basis, the total facility amount would remain at the original British Pound amount and any shortfall in the other currency would have to be repaid. As at 31 December 2008, it is the intention to extend the one-year tranche with the extension option to a total of two years until April 2010. Heineken has an incurrence covenant in some of its financing facilities. This incurrence covenant is calculated by dividing Net Debt (calculated in accordance with the consolidation method of the 2007 consolidated financial statements) by EBITDA (beia), also calculated in accordance with the consolidation method of the 2007 consolidated financial statements and including the pro-forma full-year EBITDA of any acquisitions made during the previous 12 months. As at 31 December 2008, this ratio was 3.14. The incurrence covenant would prevent us from conducting further significant debt-financed acquisitions if this would lead to passing the threshold of 3.50.Following the acquisition of S&N, €4,014 million of interest-bearing loans and borrowings has been assumed, of which a $1.15 billion S&N US private placement has been renegotiated as per the date of the acquisition with maturities between 2009 and 2015 and a weighted annual interest rate of 5.4 per cent. Assumed debt amounting to €1,996 million has been repaid, partly by the S&N acquisition facility. As per 31 December 2008 €470 million was drawn on the existing revolving credit facility of €2 billion. This revolving credit facility matures in 2012. Interest is based on EURIBOR plus a margin. Heineken established a €3 billion ENITN-programme in September 2008. This programme has been approved by the Luxembourg Commission de Surveillance du Secteur Financier which is the Luxembourg competent authority for the purpose of Directive 2003/71/EC and facilitates flexible access to Debt Capital Markets going-forward. 25. Finance lease liabilities Finance lease liabilities are payable as follows: Present Present Future value of Future value of minimum minimum minimum minimum lease lease lease lease payments Interest payments payments Interest payments In millions of EUR 2008 2008 2008 2007 2007 2007 Less than one year 19 (5) 14 2 2 Between one and five years 62 (12) 50 3 3 More than five years 35 (4) 31 2 2 116 (21) 95 7 7 The increase in finance lease liabilities is mainly due to the finance lease liabilities acquired in the business combination with S&N. 26. Employee benefits In millions of EUR 2008 2007 Present value of unfunded obligations 266 287 Present value of funded obligations 4,697 2,571 Total present value of obligations 4,963 2,858 Fair value of plan assets (4,231) (2,535) Present value of net obligations 732 323 Actuarial (losses)/gains not recognised (143) 171 Recognised liability for defined benefit obligations 589 494 Other long-term employee benefits 99 92 688 586

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2008 | | pagina 116