Financial Review 35 Results from operating activities 2010 Revenue 16,133 14,701 Other income 239 41 Raw materials, consumables and services (10,291) (9,650) Personnel expenses (2,680) (2,379) Amortisation, depreciation and impairments (1,118) (1,083) Total expenses 14,089 13,112 Results from operating activities 2,283 1,630 Share of profit of associates, joint ventures and impairments thereof 193 127 EBIT 2,476 1,757 Seneral overview With the acquisition of the beer operations of FEMSA in Mexico and Brazil, it was a transformational year for Heineken. Next to this, we strengthened and enlarged Asia Pacific Breweries Ltd ('APB'), our successful joint venture partnership with Fraser and Neave Ltd ('F&N') through the transfer of our controlling interest in PT Multi Bintang Indonesia ('MBI') and Grande Brasserie de Nouvelle-Calédonie S.A. ('GBNC'). In June 2010, Heineken UK sold its wholesale business Waverley TBS. This company was not an integral part of our UK business, since it hardly sold any Heineken UK Beer or Cider products. On these transactions Heineken made a profit of EUR199 million, which is considered as an exceptional item. The impact of the acquisition of the beer operations of FEMSA is significant on the financial measures of Heineken N.V. Total assets increased by EUR5.5 billion and shareholders' equity increased by EUR3.9 billion. The beer operations of FEMSA have been acquired in exchange for Heineken N.V. shares for a total value of EUR3.9 billion. The acquisition was financed largely by the issuance of new shares and partly with a so called 'Allotted Share Delivery Instrument' (ASDI). In 2010,10 million shares from the ASDI were delivered to FEMSA with a total value of EUR360 million. TCM, Heineken's Company-wide cost reduction programme for the period 2009 - 2011, delivered strong results, with EUR280 million savings in 2010. evenue and expenses Revenue increased by 9.7 per cent from EUR14.7 billion to EUR16.1 billion and decreased by 2.2 per cent organically. Although there was a positive impact of pricing and mix of 1.1 per cent on revenues, this was more than offset by lower volumes in Western Europe, Central and Eastern Europe and the Americas. The net increase in revenues due to the acquisition of the beer operations of FEMSA and the sale of MBI, GBNC and Waverley TBS amounted to EUR1.3 billion. Favourable exchange rate movements, primarily in Poland, Russia, the UK and Nigeria, contributed EUR447 million to revenues as well. Consolidated beer volume ended 17 per cent higher at 145.9 million hectolitres in 2010. The net impact of acquisitions and disposals was a positive 24.5 million hectolitres. Organically, consolidated beer volume was 3.1 per cent lower due to difficult economic circumstances and excise duty increases. Consolidated Heineken premium volume (including Heineken Premium Light) increased by 0.8 million hectolitres to 26.0 million hectolitres in 2010 (an organic increase of 3.4 per cent). Other income increased from EUR41 million in 2009 to EUR239 million in 2010 mainly, as a result of the sale of our Asian subsidiaries MBI and GBNC to our joint venture partner APB and the sale of Waverley TBS. Costs of raw materials and packaging increased by 16 per cent, but decreased 8.0 per cent organically, primarily reflecting lower volumes, a decrease in malting fees and lower barley prices. The decrease in goods for resale is mainly due to the deconsolidation of our wholesale busine in the UK and the fact that as from April 2010, FEMSA products sold by Heineken USA have been produced by the Heineken Group. Marketing and selling expenses increased organically by 5.4 per cent to 12.8 per cent of revenue in 2010 from 11.3 per cent in 2009. rhis increase reflects our focus on increasing brand equity and enhancing sales execution to strep- men existing market positions. Heineken N.V. Annual Report 2010

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2010 | | pagina 32