Overview
Report of the
Executive Board
Report of the
Supervisory Board
Financial statements
Other information
5. Operating segments
HEINEKEN distinguishes the following six reportable segments:
Western Europe
Central and Eastern Europe
The Americas
Africa and the Middle East
Asia Pacific
Head Office and Other/eliminations.
The first five reportable segments as stated above are the Group's business regions. These business regions are each managed separately by a Regional
President. The Regional President is directly accountable for the functioning of the segment's assets, liabilities and results of the region and reports
regularly to the Executive Board (the chief operating decision maker) to discuss operating activities, regional forecasts and regional results. The Head
Office operating segment falls directly under the responsibility of the Executive Board. For each of the six reportable segments, the Executive Board
reviews internal management reports on a monthly basis.
Information regarding the results of each reportable segment is included in the table on the next page. Performance is measured based on EBIT (beia),
as included in the internal management reports that are reviewed by the Executive Board. EBIT (beia) is defined as earnings before interest and taxes
and net finance expenses, before exceptional items and amortisation of acquisition related intangibles. Exceptional items are defined as items of income
and expense of such size, nature or incidence, that in view of management their disclosure is relevant to explain the performance of HEINEKEN for the
period. EBIT and EBIT (beia) are not financial measures calculated in accordance with IFRS. EBIT (beia) is used to measure performance as
management believes that this measurement is the most relevant in evaluating the results of these segments.
H EINEKEN has multiple distribution models to deliver goods to end customers. There is no reliance on major clients. Deliveries to end consumers are
done in some countries via own wholesalers or own pubs, in other markets directly and in some others via third parties. As such, distribution models are
country specific and on consolidated level diverse. In addition, these various distribution models are not centrally managed or monitored. Consequently,
the Executive Board is not allocating resources and assessing the performance based on business type information and therefore no segment
information is provided on business type.
Inter-segment pricing is determined on an arm's-length basis. As net finance expenses and income tax expenses are monitored on a consolidated level
(and not on an individual regional basis) and regional presidents are not accountable for that, net finance expenses and income tax expenses are not
provided per reportable segment.
Heineken N.V. Annual Report 2012
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