tiï O Q,
Financial Review (continued)
Net debt/EBITDA (beia) ratio
Report of the Executive Board
Report of the Supervisory Board
as a percentage of total assets
Shareholders' equity increased by €1,037 million to €14,358 million, mainly driven by net profit of
€1,903 million, partly offset by dividends paid out of €866 million.
Total gross debt amounts to €14,986 million (2017: €15,378 million). Net debt decreased to €12,081 million
(2017: €12,879 million) as the positive free operating cash flow exceeded the cash outflow for acquisitions,
dividends and the negative foreign currency impact on debt.
The pro forma net debt/EBITDA (beia) ratio was 2.3x on 31 December 2018 (2017: 2.5x) in line with the
long-term target ratio of below 2.5x net debt/EBITDA (beia).
In September 2018 the following notes were issued under HEINEKEN's Euro Medium Term
€600 million of 8.5-year Notes with a coupon of 1.25%
€650 million of 12.5-year Notes with a coupon of 1.75%
The Notes have been issued under the Company's Euro Medium Term Note Programme and are listed
on the Luxembourg Stock Exchange. The proceeds from the Notes issuance are to be used for general
corporate purposes, which may include repayment of debt and/or acquisitions.
In March 2018, HEINEKEN utilised its first one-year extension option under the €3.5 billion revolving credit
facility by extending the maturity to May 2023. The facility is committed by a group of 19 banks and has
another one-year extension option in 2019.
In March 2018, the European Commercial Paper Programme has been updated and increased to €2 billion
from €1 billion.
Heineken N.V. Annual Report 2018
Financial Statements Sustainability Review Other Information
The table below presents the reconciliation from operating profit to EBITDA (beia).
In millions of
Share of profit of associates and joint ventures
Depreciation and impairments of property, plant and equipment
Amortisation and impairment of intangible assets
Heineken N.V. was assigned solid investment grade credit ratings by Moody's Investor Service and Standard
Poor's in 2012. The ratings from both agencies, Baa1/P-2 and BBB+/A-2 respectively, have 'stable' outlooks
as per the date of the 2018 Annual Report.