Financial Review continued
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Contents
Overview
Report of the
Executive Board
Report of the
Supervisory Board
Financial
statements
Other information
The Global Business Services ('GBS') organisation remains a key enabler ofTCM2 cost savings. HEINEKEN Global Procurement (HGP)
continues to drive considerable cost benefits facilitated by the central negotiation and purchasing of both product and non-product-
related spend areas. In addition 14 of the 24 operating companies in Europe have now successfully transitioned financial transactional
services to the HEINEKEN Global Shared Services (HGSS) centre in Poland. The remaining operating companies are planned to have
transitioned these activities by the end of 2014.
In addition, HEINEKEN plans to further leverage the scalability of GBS by expanding the scope of activities carried out by HGSS.
This primarily comprises processes related to purchasing, order fulfilment and standard reporting activities of operating companies.
All operating companies in Europe will have transitioned these new activities to HGSS by the end of 2015.
In 2013, upfront costs related to the set-up of the GBS organisation were EUR67 million (including EUR51 million recognised as
an operational expense and EUR16 million of capitalised IT infrastructure costs). This brings the cumulative amount of upfront GBS
costs as at the end of 2013 to EUR169 million, of which EUR133 million has been expensed and EUR36 million capitalised.
The 2013 exceptional items included in EBIT contain the amortisation of acguisition related intangibles for EUR329 million (2012:
EUR198 million), the impairment of intangible assets and P, P E in Russia for EUR102 million, the gain on sale of our Kazakhstan
operations of EUR75 million and restructuring expenses in Europe of EUR99 million (2012: EUR97 million). The remainder of EUR64 million
primarily relates to the dilution gain as a result of the share issuance by our joint venture CompaniaCervecerias UnidasS.A. ('CCU')
of EUR47 million.
Share of profits of associates and joint ventures
Share of net profit of associates and joint ventures (beia) decreased from EUR252 million to EUR150 million mainly reflecting the full
consolidation of APB/APIPL (HEINEKEN reported its share of net profit from its previously held eguity interest in APB/APIPL prior to
consolidation). On an organic basis, share of net profit of associates and joint ventures (beia) increased by 8.4 per cent, primarily
reflecting higher profit of Asia Pacific Breweries and the CCU joint venture in Chile. This was only partly offset by lower profitability
of the UBL joint venture in India.
Results (beia)
In millions of EUR
2013
2012*
Result from operating activities
2,554
3,697
Share of profit of associates and joint ventures and impairments thereof (net of income tax)
146
213
EBIT
2,700
3,910
Exceptional items and amortisation of acquisition-related intangible assets included in EBIT
391
(992)
EBIT (beia)
3,091
2,918
Share of profit of associates and joint ventures and impairments thereof (beia)
(net of income tax)
(150)
(252)
Consolidated operating profit (beia)
2,941
2,666
Attributable share of operating profit from joint ventures and associates and
impairments thereof
251
440
Group operating profit (beia)
3,192
3,106
Profit attributable to equity holders of the Company (net profit)
1,364
2,914
Exceptional items and amortisation of acquisition-related intangible assets included in EBIT
391
(992)
Exceptional items included in finance costs
(11)
(206)
Exceptional items in tax expense
(151)
(55)
Exceptional items included in non-controlling interests
(8)
Net profit (beia)
1,585
1,661
'Restated for the revised IAS 19.
Heineken N.V. Annual Report 2013
28
