29
Financial Review (continued)
Financial structure and liquidity
Total equity Net debt/EBITDA (beia) ratio
Report of the
Report of the
Financial
Sustainability
Other
Introduction
Executive Board
Supervisory Board
Statements
Review
Information
Heineken N.V. Annual Report 2017
Capital expenditure related to property, plant and equipment amounted to €1,696 million in 2017 (2016: €1,757 million) representing 7.7% of
revenues. The investments include new capacity in Ethiopia, Mexico, Cambodia, Vietnam, Haiti and a new brewery in the Ivory Coast.
Free operating cash flow amounted to €2,031 million (2016: €1,773 million), higherthan last year primarily due to higher cash flow generated from
operations and lower operational investing activities. Cash flow from changes in working capital in 2017 was again positive, albeit lowerthan last year
due to one offs in receivables and a less favourable change in inventories.
In millions of
2017
206
Total equity
14,521
35
14,573
37
Deferred tax liabilities
1,495
4
1,672
4
Employee benefits
1,289
3
1,420
4
Provisions
1,148
3
456
1
Gross debt
15,378
38
14,570
38
Other liabilities
7,203
18
6,630
16
Total equity and liabilities
41,034
101
39,321
100
as a percentage of total assets
2017 35.4 2017 2.5
2016 I 37.1 2016 I 2.3
2015 I 37.6 2015 2.4
2014 I 1 38.6 2014 2.5
2013 37.1 2013 I 2.6
Equity attributable to equity holders of the Company increased by €83 million to €13,321 million, mainly driven by net profit of €1,935 million being
offset by a negative other comprehensive income impact of €1,054 million mainly relating to translation differences. Furthermore dividends paid out
of €775 million reduced the equity attributable to the equity holders of the Company.
Total gross debt amounts to €15,378 million (2016: €14,570 million). The gross debt includes €1,062 million of overdrafts in the cash pool with legally
enforceable rights to offset against cash. Net debt increased to €12,879 million (2016: €11,293 million) as cash outflow for dividends and acquisitions
exceeded the positive free operating cash flow and positive foreign currency impact on debt.
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 pro forma net debt/EBITDA (beia) ratio was 2.5 on 31 December 2017 (2016: 2.3).
In 2017 the following notes were issued under HEINEKEN's Euro Medium Term Note Programme:
- SDG150 million 5-year Notes with a floating rate coupon (February 2017)
-€500 million 15-year Notes with a coupon of 2.02% (May 2017)
-€800 million 12-year Notes with a coupon of 1.50% (October 2017)
On 20 March 2017, HEINEKEN extended and amended its €2.5 billion revolving credit facility maturing in May 2021. The facility has been increased to
€3.5 billion and is now set to mature in May 2022. The facility is committed by a group of 19 banks and has two further one-year extension options.
On 29 March 2017, HEINEKEN placed USD 1.1 billion of long 10-year 144A/RegS US Notes with a coupon of 3.50%, and USD 650 million of 30 year
144A/RegS US Notes with a coupon of 4.35%.
