Financial Review Results from operating activities 2011 Revenue 17,123 16,133 Other income 64 239 Raw materials, consumables and services 10,966 10,291 Personnel expenses 2,838 2,665 Amortisation, depreciation and impairments 1,168 1,118 Total expenses 14,972 14,074 Results from operating activities 2,215 2,298 Share of profit of associates, joint ventures and impairments thereof 240 193 EBIT 2,455 2,491 Comparatives have been adjusted due to the accounting policy change in employee benefits (see note 2e of the financial statements) General In 2011 HEINEKEN changed its accounting policy with respect to the recognition of actuarial gains and losses which will now arise immediately in other comprehensive income (OCI). This policy change is reflected by adjusting 2010 comparative amounts resulting in EUR15 million increase in EBIT, EUR4 million increase in tax expenses and EUR11 million increase in net profit. The net impact on total eguity as per 31 December 2010 is a decrease of EUR296 million. Revenue and expenses Revenue increased substantially. EUR753 million relate to the inclusion of 4 additional months of Femsa Cerveza and the acguisition of new breweries in Nigeria and Ethiopia. Revenue increased in all regions due to higher revenues per hectolitre sold (1.5 per cent) and higher volumes (2.1 per cent). Exchange rate differences had an unfavourable impact of EUR351 million on revenue, mainly caused by the depreciation of the Nigerian naira, Mexican peso and British pound. Consolidated volume increased with 2.1 per cent to 1944 million hectolitre, while consolidated beer volume increased with 3.2 per cent to 164.6 million hectolitres. Soft drink volumes increased low single digit and we experienced a mid-single-digit decline in third-party products sold through wholesale operations as well as lower cider volumes. Other income decreased significantly because of the sale in 2010 of our Asian subsidiaries MBI and GBNC to our Joint Venture APB and the sale of Waverly TBS. In 2011 an amount of EUR24 million is included for the sale of our Courage brands in the United Kingdom which is treated as an exceptional item. OurTCM program was completed in 2011 and delivered EUR178 million savings in 2011. In 2011 TCM related costs of EUR81 million for redundancies and contract settlements are treated as exceptional items. Cumulative savings amount to EUR614 million since the beginning of the program in 2009. Costs of raw materials and non-returnable packaging increased with 9.4 per cent (5.2 per cent organically) primarily reflecting higher volumes and higher input costs per hectolitre. Goods for resale decreased mainly due to the disposal of our wholesale business in the UK last year and the inclusion of Femsa products sold by HEINEKEN USA in the first 4 months of last year. Marketing and selling expenses increased organically by 4.1 per cent to 12.8 per cent of revenue. This increase reflects the support of the roll-out of the new Global Heineken® campaign in 40 markets and several new product launches. Our Global Business Services organisation which was formed late 2010 made significant progress in establishing a Global Shared Service Centre in Kraków and a Global Procurement Company in the Netherlands. In 2011 EUR32 million incremental costs were incurred. Heineken N.V. Annual Report 2011 39

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2011 | | pagina 41