Report of the
Report of the
Contents
Overview
Executive Board
Supervisory Board
Financial
statements
Other
information
5. Operating segments
HEIN EKEN distinguishes the following six reportable segments:
Western Europe
Central and Eastern Europe
The Americas
Africa Middle East
Asia Pacific
Head Office and Other/eliminations.
The first five reportable segments as stated above are HEINEKEN'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 acguisition-related intangibles. Exceptional
items are defined as items of income and expense of such size, nature or incidence, that in the 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.
HEINEKEN 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 diverse across HEINEKEN. In addition, these various distribution models are not centrally managed or monitored.
Conseguently, 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 for the operating segments.
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Heineken N.V. Annual Report 2014