Report of the
Report of the
Financial
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Contents
Overview
Executive Board
Supervisory Board
statements
information
Financing ratios
HEINEKEN remains focused on cash flow generation and disciplined working capital management, with a commitment to a long-term target
net debt/ EBITDA (beia) ratio of below 2.5. Despite the impact of the strong appreciation of the U.S. dollar a net debt/EBITDA (beia) of 2.5
was achieved at the end of 2014 (2013: 2.5). The anticipated proceeds of the EMPAQUE divestment will provide further flexibility.
HEINEKEN has an incurrence covenant in some of its financing facilities. This incurrence covenant is calculated by dividing net debt by
EBITDA (beia) (both based on proportional consolidation of joint ventures and including acguisitions made in 2014 on a pro-forma basis).
As at 31 December 2014 this ratio was 2.4 (2013: 2.5). If the ratio would be beyond a level of 3.5, the incurrence covenant would prevent us
from conducting further significant debt financed acguisitions.
Profit appropriation
HEINEKEN has widened the pay-out ratio for its annual dividend from 30-35 per cent to 30-40 per cent of net profit (beia). For 2014,
a payment of a total cash dividend of EUR1.10 per share (2013: EUR0.89) will be proposed at theAGM. If approved, a final dividend of
EUR0.74 per share will be paid on 5 May 2015, as an interim dividend of EUR0.35 per share was paid on 2 September 2014. The payment
will be subject to 15 per cent Dutch withholding tax.
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Heineken N.V. Annual Report 2014