Notes to the Consolidated Financial Statements continued
Reportofthe Reportofthe Financial Other
Contents Overview Executive Board Supervisory Board Statements Information
5. Operating segments
HEINEKEN distinguishes the following five reportable segments:
Africa, Middle East Eastern Europe
Americas
Asia Pacific
Europe
Head Office and Other/eliminations
The first four reportable segments as stated above are HEIN EKEN'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 five 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 H EIN EKEN 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.
85 Helneken N.V. Annual Report 2015