Financial Review (continued)
Financing and liquidity
52 Annual Report 2009 - Heineken N.V.
Report of the Executive Board
As a percentage of total assets
Net debt/EBITDA (beia)
In millions of EUR20092008
Depreciation and impairments of plant, property and equipment
Amortisation and impairment of intangible assets (including goodwill)
Other exceptional items
As at 31 December 2009, total equity increased by EUR895 million to EUR5,647 million, whilst equity attributable
to equity holders of the Company increased by EUR880 million to EUR5.351 million. This increase is mainly due
to strong profit and the positive impact of foreign currency translation differences.
Following the credit crunch in 2008, employee benefit assets saw a significant increase during 2009. At the
same time interest rates decreased, resulting in an increase in pension obligations. The net recognised liability
decreased slightly, the unrecognised actuarial losses increased significantly and future contributions to pension
funds may increase if the existing situation remains.
Net debt as at 31 December 2009 amounted to EUR 7,704 million. The decrease of EUR 1,228 million was driven
by strong operational cash generation during 2009 and the buyback of the Globe debt.
Of total gross interest-bearing debt, approximately 90 per cent is denominated in euro. This is including the
effect of cross-currency interest rate swaps on non-euro denominated debt such as the GBP bond and the US
private placements at both Heineken N.V. and Heineken UK. The fair value of these swaps does not form part
of net debt.
Approximately 7 per cent of gross-bearing debt (EUR 550 million) is denominated in British pounds. This consists
both of interest-bearing debt at the level of UK (held at several subsidiaries) as well as 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
intercompany lending denominated in currencies other than euro.
Heineken updated its EMTN-programme in September 2009. 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.
In February 2009, the Company placed 6-year Sterling Notes for a principal amount of GBP400 million with
a coupon of 7.25 per cent. In March 2009, the Company placed 5-year Euro Notes for a principal amount of
EUR1 billion with a coupon of 7.125 per cent. In October 2009 Heineken placed 7-year Euro Notes for a principal
amount of EUR400 million with a coupon of 4.625 per cent.
Our repayment profile shows no major repayments before HY1 2013. In February 2010 our EUR500 million
Bond, issued in 2003, matured. This has been refinanced from operational cash flows and existing