Financial statements Notes to the consolidated financial statements
15. Intangible assets
Cash flows were projected based on actual operating results and the three-year business plan. Cash flows for a further
seven-year period were extrapolated using expected annual per country volume growth rates, which are based on external
sources. Management believes that this forecasted period is justified due to the long-term nature of the beer business and
The beer price growth per year after the first three-year period is assumed to be at specific per country expected annual
long-term inflation, based on external sources.
Cash flows after the first ten-year period were extrapolated using a perpetual growth rate equal to the expected annual
long-term inflation, in order to calculate the terminal recoverable amount.
A per CGU-specific pre-tax Weighted Average Cost of Capital (WACC) was applied in determining the recoverable amount
of the units.
The values assigned to the key assumptions used for the value-in
use calculations are as follows:
Central and Eastern Europe (excluding Russia)
The Americas (excluding Brazil)
The values assigned to the key assumptions represent management's assessment of future trends in the beer industry and are base
on both external sources and internal sources (historical data). For Russia, management has decreased the perpetual growth rate
by 3 per cent to reflect management's best estimate, resulting in a perpetual growth rate of 2.5 per cent and a more conservative
value in use.
Sensitivity to changes in assumptions
The outcome of a sensitivity analysis of a 100 basis points adverse change in key assumptions (lower growth rates or higher discou
rates respectively) did not result in a materially different outcome of the impairment test.
16. Investments in associates and joint ventures
Heineken has the following significant investments in associates and joint ventures:
Brau Holding International GmbH Co KgaA
Zagorka Brewery A.D.
Pivara Skopje A.D.
Brasseries du Congo S.A.
Asia Pacific Investment Pte. Ltd.
Asia Pacific Breweries Ltd.
Compania Cervecerias Unidas S.A.
Tempo Beverages Ltd.
Heineken Lion Australia Pty.
Diageo Heineken Namibia B.V.
United Breweries Limited
Millenium Alcobev Private Limited*
DHN Drinks (Pty) Ltd.