Financial Review (continued)
Financing structure and liquidity
Total equity Net debt/EBITDA (beia) ratio
Report of the
Report of the
Annual Report 2016
Capital expenditure related to property, plant and equipment amounted to EUR 1,757 million in 2016 (2015: EUR 1,638 million) representing 8.5%
of revenues. The increase in capital expenditure on the prior year included investments in Ethiopia, Cambodia, Ivory Coast, Mexico, Brazil, Vietnam
Free operating cash flow amounted to EUR 1,773 million (2015: EUR 1,692 million), higher than last year primarily due to positive cash flow
generated operations, which was partly offset by higher capital expenditure. Cash flow from changes in working capital in 2016 was again positive,
albeit lower than last year due to one offs in receivables and less favourable movements in our payables due to capital expenditure phasing.
In millions of EUR
Deferred tax liabilities
Interest-bearing loans and borrowings
Total equity and liabilities
Comparative figures have been revised to reflect the change in accounting policy on netting cash and overdraft balances in cash pooling arrangements with legally enforceable rights
as a percentage of total assets
Ratio has been revised to reflect the change in accounting policy on netting cash and overdraft balances in cash pooling arrangements with legally enforceable rights to offset.
Equity attributable to equity holders of the Company decreased by EUR 297 million to EUR 13,238 million, mainly driven by net profit
of EUR 1,540 million being offset by a negative other comprehensive income impact of EUR 880 million mainly relating to translation differences
and actuarial losses. Furthermore dividends paid out EUR 786 million and acquisition of non controlling interests of EUR 145 million reduced
the equity attributable to the equity holders of the Company.
Total gross debt amounts to EUR 14,570 million (2015: EUR 14,973 million). The gross debt position includes the impact of the change in accounting
policy on netting cash and overdraft balances in cash pooling arrangements. Net debt decreased to EUR 11,293 million (2015: EUR 11,510 million)
as free operating cash flow exceeded the cash outflow for dividends, acquisitions and foreign currency impact on debt.
In 2016, HEINEKEN extended its EUR 2,500 million revolving credit facility by one year and the facility matures now in 2021. The facility
is committed by a group of 19 banks.
In May 2016, HEINEKEN issued 10-year Notes for a principal amount of EUR 800 million with a coupon of 1.0%. In November 2016 HEINEKEN
issued long 10-year Notes for a principal amount of EUR 500 million with a coupon of 1.375%. All these Notes have been issued under HEINEKEN's
Euro Medium Term Note Programme. The proceeds of the Notes were used for general corporate purposes.
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. The net debt/EBITDA (beia) ratio was 2.3 on 31 December 2016 (2015: 2.4).