28
Financial Review (continued)
Reported to beia
-
-
-
Capital expenditure and cash flow
Report of the
Report of the
Financial
Sustainability
Other
Introduction
Executive Board
Supervisory Board
Statements
Review
Information
Heineken N.V. Annual Report 2017
The 2017 exceptional items and amortisation of acquisition-related intangibles on net profit amount to €312 million (2016: €558 million). This amount
consists of:
-€302 million (2016: €315 million) of amortisation of acquisition-related intangibles recorded in operating profit.
-€105 million (2016: €470 million) of exceptional items recorded in operating profit, of which €20 million in revenue (2016: nil), €93 million of
restructuring expenses (2016: €80 million), €19 million of reversal of impairments of property, plant and equipment (2016: €316 million impairment
loss of which €286 million related to The Democratic Republic of Congo), €72 million of acquisition and integration costs (2016: €8 million) and
€61 million of other exceptional net benefits (2016: €66 million expense). Other exceptional net benefits include the gain on sale of non-beer and
cider wholesale operations in the Netherlands.
-€8 million (2016: €25 million) of exceptional items in net finance expenses, mainly related to the acquisitions of Punch and Brasil Kirin.
-€78 million of exceptional items and amortisation of acquisition-related intangibles included in share of profit of associates and joint ventures, which
includes loss on previously-held equity interests and the recycling of foreign exchange from equity to profit and loss (2016: €10 million).
-€142 million (2016: €196 million) in income tax expense, which includesthetax impact on exceptional items and amortisation of acquisition-related
intangible assets of €97 million (2016: €109 million) and an exceptional income tax benefit of €45 million (2016: €87 million), mainly due to the
remeasurement of deferred tax positions following a nominal tax rate change in the United States.
-Total amount of eia allocated to non-controlling interests amounts to €39 million (2016: €66 million).
In millions of€
Reported
2017
Eia
2017
Beia
2017
Reported
2016
Eia
2016
Beia
2016
Revenue
21,888
20
21,908
20,792
20,792
Other income
141
(141)
46
(46)
Total expenses
(18,677)
528
(18,149)
(18,083)
831
(17,252)
Operating profit
3,352
407
3,759
2,755
785
3,540
Share of net profit of assoc./JVs
75
78
153
150
10
161
Net interest income/(expenses)
(396)
22
(374)
(359)
4
(355)
Other net finance income/(expenses)
(123)
(13)
(136)
(134)
20
(114)
Income tax expense
(755)
(142)
(897)
(673)
(196)
(869)
Non-controlling interests
(218)
(40)
(258)
(199)
(66)
(265)
Net profit
1,935
312
2,247
1,540
558
2,098
In millions of€
2017
2016
Cash flow from operations before changes in working capital and provisions
4,980
4,713
Total change in working capital
69
80
Change in provisions and employee benefits
(125)
(73)
Cash flow from operations
4,924
4,720
Cash flow related to interest, dividend and income tax
(1,042)
(1,002)
Cash flow from operating activities
3,882
3,718
Cash flow (used in)/from operational investing activities
(1,851)
(1,945)
Free operating cash flow
2,031
1,773
Cash flow (used in)/from acquisitions and disposals
(1,114)
(62)
Cash flow (used in)/from financing activities
(966)
(672)
Net cash flow
(49)
1,039
Cash conversion ratio
81%
75%
