11 HEINEKEN N.V. ANNUAL REPORT 2008 Reducing debt through initiatives that strengthen cash generation and cash conservation. These include programmes to reduce capital expenditure, networking capital and the sale of non-core assets. The Company has instigated a programme to increase the cash conversion rate in excess of 100 per cent in the period 2009 - 2011. Improving performance of newly acquired companies. Every new business has specific, focused action plans to improve their performance. Reducing costs through Total Cost Management. Heineken has launched new cost-reduction initiatives focusing on savings that will have an immediate and positive impact on cash flow. Maintaining the price positioning of key brands. Heineken will continue to pass on the effect of higher costs, currency impacts and higher excise duties, in the selling prices of its key brands. It will restore margins, which were negatively affected by high cost increases in 2008. For 2009, Heineken expects that the underlying downward trend in the number of employees will continue due to cost-reduction and efficiency-improvement programmes. Capital expenditures related to property, plant and equipment, including the investments of newly acquired businesses, will amount to approximately €700 million (4.9 per cent of 2008 revenue), of which €230 million relates to the carry-over of expansion projects started in previous years. This is substantially below the like-for-like €1.1 billion of 2008, which is mainly due to new capex-reducing initiatives and the completion of a number of investment programmes. Heineken will finance the capital expenditure from cash flow. Starting in 2009, Heineken will issue a trading update after each first and third quarter. Increasing the efficiency and effectiveness of all marketing investments. Heineken will ensure the right level of marketing support for key local and international brands, leveraging the fall in media costs.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2008 | | pagina 18