36 Report of the Executive Board Financial Review TCM is Heineken's Company-wide cost reduction programme covering the period from the beginning of 2009 to the end of 2011. In 2010, the pre-tax amount of cost savings realised under TCM totalled EUR280 million, resulting in cumulative TCM savings of EUR435 million. Restructuring programmes and brewery closures were launched and realised, mainly in the UK and Spain. Related costs amount to EUR39 million and are considered exceptional items. Mainly due to implemented restructuring programmes, personnel expenses were organically 2.6 per cent lower. Total costs relating to the acquisition and integration of the beer operations of FEMSA amount to EUR80 million and are considered exceptional items. The operating margin increased significantly by 1.6 per cent point, due to a combination of a higher gross profit margin and lower costs. The increase of impairments on customer loans and receivables was due to bad economic environments mainly in Western and Eastern Europe. Impairment of receivables on one large on-trade customer in Western Europe, including related guarantees to banks, totalling EUR70 million is considered exceptional item. Results (beia) 2010 Result from operating activities 2,283 1,630 Share of profit of associates and Joint Ventures 193 127 EBIT 2,476 1,757 Amortisation of brands and customer relationships 142 79 Exceptional items (10) EBIT (beia) 2,608 2,095 2010 Net profit 1,436 1,018 Amortisation of brands and customer relationships 103 59 Exceptional items (94) (22) Net profit (beia) 1,445 1,055 EBIT (beia) and Net profit (beia) 2,095 1,055 Organic growth 179 208 Changes in consolidation 264 133 Effects of movements in exchange rates 70 49 2010 2,608 1,445 EBIT and net profit Net interest expenses decreased by EUR53 million from EUR543 million to EUR490 million. Organically, interest cost decreased by EUR122 million due to the very strong cash flow generation which reduced net debt. New acquisitions and exchange rate differences impacted interest costs negatively by EUR68 million. Other net financing expenses amount to EUR19 million, while last year a net income of EUR214 million was reported mainly due to a book gain on the Globe restructuring. Without these exceptional gains in 2009, other net financing expenses in 2010 were in line with 2009 and relate to transactional foreign exchanges differences and losses on derivatives, unwinding of discounts on the long-term tax liability in Brazil and unwinding of discounts of provisions. The average tax burden is 22.5 per cent and is in line with 2009. The rate includes the (partly) tax exempt gain on the sale of MBI/ GBNC, the disposal of Waverley TBS, exceptional tax items in 2010 related to the finalisation of the Globe transactions in the UK and various other settlements with the tax authorities. Tax rate (beia) increased from 25 per cent to 27.3 per cent mainly due to the relatively high tax rate applicable to our new Mexican business.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2010 | | pagina 33