FINANCIAL REVIEW CONTINUED 52 REPORT OF THE EXECUTIVE BOARD HEINEKEN N.V. ANNUAL REPORT 200 i Total equity As a percentage of total assets Net debt/EBITDA (beia) 2004 2005 2006 2007 2008 34.6 38.2 42.5 23.1 3.28 In millions of EUR 2008 2007 EBIT Depreciation and impairments of plant, property and equipment Amortisation and impairment of intangible assets (including goodwill) 1,080 825 381 1,418 609 29 EBITDA 2,286 2,056 Exceptional items (adjusted for exceptional items in depreciation and amortisation) 434 328 EBITDA (beia) 2,720 2,384 Financing and liquidity As at 31 December 2008, total equity decreased by €959 million to €4,752 million, whilst equity attributable to equity holders of the Company decreased by €933 million to €4,471 million. This decrease was mainly due to the effect of foreign currency translation differences and a negative movement in the hedging reserve. The increase in the impact of foreign currency translation differences for foreign operations in equity of €645 million was mainly due to the impact of depreciation of the British Pound on the net assets and goodwill measured in British Pounds of total €423 million. Remaining impact was related to devaluation of the Russian Ruble and Chilean Peso off-set by the appreciation of the US Dollar. Hedge accounting on interest rate swaps and hedging of US Dollar export cash flows mainly caused the negative impact on the hedging reserve. Due to the economic downturn, employee benefit assets have decreased significantly. Future contributions to pension funds may increase if the existing situation remains. Net debt as of 31 December 2008 amounted to €8,932 million. Because of the acquisition of S&N and several other acquisitions the leverage of the Group has increased significantly. S&N was acquired for a net consideration of €2,837 million and in addition, €3,836 million of existing net debt was acquired as well. Other cash flow from acquisitions and disposals added up to €797 million. The acquisition of S&N was financed with an Acquisition Facility provided by nine banks, split between a one-year tranche (outstanding as of 31 December 2008: €1,144 million) that is extendible with another one-year and a five-year tranche (outstanding as of 31 December 2008: €2,920 million). Of total gross interest-bearing debt, approximately 84 per cent is denominated in Euro. This is includes the effect of cross-currency interest rate swaps on non-euro-denominated debt such as US private placements at both Heineken N.V. and S&N pic level. The fair value of these swaps does not form part of Net Debt. Approximately 13 per cent of gross-bearing debt is denominated in British Pound. This consists both of interest-bearing debt at the level of several UK subsidiaries and Special Purpose Entities (SPEs) as well as approximately GBP 512 million of debt at Heineken N.V. level. The remaining 3 per cent of gross interest debt is denominated in other currencies. This is mostly debt at subsidiary level. This currency breakdown excludes the effect of any derivatives, which are used to hedge inter-Company lending denominated in currencies other than Euro. The first peak in our repayment profile can be identified in the first half of 2010. In February 2010 one of our €500 million Bonds, issued in 2003, will mature. Since the Company intends to extend the one-year tranche of the Acquisition Facility, it includes the repayment of this tranche as of the end of April 2010 in its repayment profile. The Company intends to repay the debts maturing in the first half of 2010 partly from its own cash flow generation and partly from proceeds from further refinancing activities. Heineken also established an EMTN programme in September 2008. This programme was 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.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2008 | | pagina 54