Report of the Report of the
Contents Overview Executive Board Supervisory Board
Financial
statements
Other information
34. Contingencies
As part of the acquisition of the beer operations of FEMSA in 2010, HEIN EKEN inherited existing legal proceedings with labour
unions, tax authorities and other parties of its, now wholly-owned, subsidiaries Cervejarias Kaiser Brasil and Cervejarias Kaiser
Nordeste (jointly, Heineken Brasil). The proceedings have arisen in the ordinary course of business and are common to the current
economic and legal environment of Brazil. The proceedings have partly been provided for (see note 30). The contingent amount
being claimed against Heineken Brasil resulting from such proceedings as at 31 December 2013 is EUR564 million. Such contingencies
were classified by legal counsel as less than probable but more than remote of being settled against Heineken Brasil. However,
HEINEKEN believes that the ultimate resolution of such legal proceedings will not have a material adverse effect on its consolidated
financial position or result of operations. HEINEKEN does not expect any significant liability to arise from these contingencies.
A significant part of the aforementioned contingencies (EUR308 million) is tax-related and qualifies for indemnification by FEMSA
(see note 17).
As is customary in Brazil, Heineken Brasil has been requested by the tax authorities to collateralise tax contingencies currently in litigation
amounting to EUR296 million by either pledging fixed assets or entering into available lines of credit which cover such contingencies.
Guarantees
In millions of EUR
Total 2013
Less than
1 year
1-5 years
More than
5 years
Total 2012
Guarantees to banks for loans (to third parties)
280
191
72
17
300
Other guarantees
423
122
258
43
358
Guarantees
703
313
330
60
658
Guarantees to banks for loans relate to loans to customers, which are given to external parties in the ordinary course of business of
HEINEKEN. HEINEKEN provides guarantees to the banks to cover the risk related to these loans.
35. Related parties
Identification of related parties
HEINEKEN has a related party relationship with its associates and joint ventures (refer to note 16), Heineken Holding N.V., Heineken
pension funds (refer to note 28), Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA), employees (refer to note 25) and with its key
management personnel (the Executive Board and the Supervisory Board). For our shareholder structure reference is made to the
section 'Shareholder Information'.
Key management remuneration
In millions of EUR
2013
2012
Executive Board
10.0
6.8
Supervisory Board
0.9
0.9
Total
10.9
7.7
Heineken N.V. Annual Report 2013
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