Financial Review (continued)
Reported to beia
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Capital expenditure and cash flow
OA
Heineken NV.
Report of the
Report of the
Financial
Sustainability
Other
30
Annual Report 2016
Introduction
Executive Board
Supervisory Board
Statements
Review
Information
The 2016 exceptional items and amortisation of acquisition-related intangibles on net profit amounts to EUR 558 million (2015: EUR 156 million).
This amount consists of:
- EUR 315 million (2015: EUR 321 million) of amortisation of acquisition-related intangibles recorded in EBIT. EUR 10 million (2015: EUR 5 million)
of this amount is included in share of net profit of associates and joint ventures.
- EUR 480 million (2015: EUR 10 million income) of exceptional items recorded in EBIT. This includes restructuring expenses of EUR 80 million
(2015: EUR 106 million), impairments of EUR 328 million (2015: EUR 78 million) of which EUR 286 million relates to The Democratic
Republic of Congo (DRC). Other exceptional expenses in EBIT amounted to EUR 72 million (2015: EUR 194 million income which included
EUR 379 million disposal gain for EMPAQUE). This includes asset write downs and the recording of provisions for an amount of EUR 62 million
(2015: EUR 79 million).
- EUR 25 million (2015: EUR 18 million income) of exceptional items in net finance expenses, mainly related to the currency impact on dividend
receivables from Nigeria.
- EUR 196 million (2015: EUR 124 million) in income tax expense includes the tax impact on amortisation of acquisition-related intangible assets
of EUR 73 million (2015: EUR 75 million), the tax impact on exceptional items of EUR 36 million (2015: EUR 58 million) and an exceptional
income tax benefit of EUR 87 million (2015: EUR 9 million expense), mainly relating to previously unrecognised deferred tax assets in 2016.
- Total amount of Eia allocated to non-controlling interest amounts to EUR 66 million (2015: EUR 13 million).
In millions of EUR
Reported
2016
Eia
2016
Beia
2016
Reported
2015
Eia
2015
Beia
2015
Revenue
20,792
20,792
20,511
20,511
Other income
46
(46)
411
(411)
Total expenses
(18,083)
831
(17,252)
(17,847)
717
(17130)
Operating profit
2,755
785
3,540
3,075
306
3,381
Share of net profit of assoc./JVs
150
10
161
172
5
177
EBIT
2,905
795
3,700
3,247
311
3,558
Net interest income/(expenses)
(359)
4
(355)
(352)
(352)
Other net finance income/(expenses)
(134)
20
(114)
(57)
(19)
(76)
Income tax expense
(673)
(196)
(869)
(697)
(125)
(822)
Minority interests
(199)
(66)
(265)
(249)
(12)
(261)
Net profit
1,540
558
2,098
1,892
156
2,048
In millions of EUR
2016
2015
Cash flow from operations before changes in working capital and provisions
4,713
4,280
Total change in working capital
80
371
Change in provisions and employee benefits
(73)
(165)
Cash flow from operations
4,720
4,486
Cash flow related to interest, dividend and income tax
(1,002)
(997)
Cash flow from operating activities
3,718
3,489
Cash flow (used in)/from operational investing activities
(1,945)
(1,797)
Free operating cash flow
1,773
1,692
Cash flow (used in)/from acquisitions and disposals
(62)
(267)
Cash flow (used in)/from financing activities
(672)
(1,173)
Net cash flow
1,039
252
Cash conversion ratio
75%
73%