Notes to the Consolidated Financial Statements (continued)
Fair value reserve
Other legal reserves
Reserve for own shares
Report of the
Report of the
Annual Report 2016
As at 31 December 2016, the share premium amounted to EUR 2,701 million (2015: EUR 2,701 million).
The translation reserve comprises foreign currency differences arising from the translation of the financial statements of foreign operations of
HEINEKEN (excluding amounts attributable to non-controlling interests) as well as value changes of the hedging instruments in the net investment
hedges. HEINEKEN considers this a legal reserve.
This reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments where the hedged
transaction has not yet occurred. HEINEKEN considers this a legal reserve.
This reserve comprises the cumulative net change in the fair value of available-for-sale investments until the investment is derecognised or impaired.
HEINEKEN considers this a legal reserve.
These reserves relate to the share of profit of joint ventures and associates over the distribution of which HEINEKEN does not have control.
The movement in these reserves reflects retained earnings of joint ventures and associates minus dividends received. In case of a legal or other
restriction which means that retained earnings of subsidiaries cannot be freely distributed, a legal reserve is recognised for the restricted part.
Furthermore, part of the reserve comprises a legal reserve for capitalised development costs.
The reserve for the Company's own shares comprises the cost of the Company's shares held by HEINEKEN. As at 31 December 2016, HEINEKEN held
6,321,833 of the Company's shares (2015: 6,318,958).
During the period from 1 January to 31 December 2016, HEINEKEN acquired 505,000 shares for an amount of EUR 39 million for delivery against
LTV and other share-based payment plans.
The following dividends were declared and paid by HEINEKEN:
In millions of EUR
Final dividend previous year EUR 0.86, respectively EUR 0.74 per qualifying ordinary share
Interim dividend current year EUR 0.52, respectively EUR 0.44 per qualifying ordinary share
Total dividend declared and paid 786 676
For 2016, a payment of a total cash dividend of EUR 1.34 per share (2015: EUR 1.30) will be proposed at the AGM. If approved, a final dividend
of EUR 0.82 per share will be paid on 3 May 2017, as an interim dividend of EUR 0.52 per share was paid on 11 August 2016. The payment will be
subject to 15% Dutch withholding tax.
After the balance sheet date, the Executive Board proposed the following appropriation of profit. The dividends, taking into account the interim
dividends declared and paid, have not been provided for.
In millions of EUR 2016 2015
Dividend per qualifying ordinary share EUR 1.34 (2015: EUR 1.30)
Addition to retained earnings
Net profit 1,540 1,892
The non-controlling interests (NCI) relate to minority stakes held by third parties in HEINEKEN consolidated subsidiaries. The total non-controlling
interest as at 31 December 2016 amounted to EUR 1,335 million (2015: EUR 1,535 million).