Notes to the Consolidated Financial Statements (continued)
Introduction Report of the Executive Board Report of the Supervisory Board
This reserve comprises the effective portion of the cumulative net change in the fair value of cash flow
hedging instruments where the hedged transaction has not yet occurred. HEINEKEN considers this a
Fair value reserve
This reserve comprises the cumulative net change in the fair value of FVOCI equity investments.
Heineken transfers amounts from this reserve to retained earnings when the relevant equity securities are
derecognised. HEINEKEN considers this a legal reserve.
Other legal reserves
These reserves relate to the share of profit of joint ventures and associates over the distribution of which
HEINEKEN does not have control. The movement in these reserves reflects the share of profit of joint
ventures and associates minus dividends received. For retained earnings of subsidiaries which cannot be
freely distributed due to legal or other restrictions, a legal reserve is recognised. Furthermore, part of the
reserve comprises a legal reserve for capitalised development costs.
Reserve for own shares
The reserve for own shares comprises the treasury shares held by HEINEKEN. Refer to the table below with
the changes in 2018.
Reserve for own shares
Number of shares
1 January 2018
31 December 2018
The following dividends were declared and paid by HEINEKEN:
In millions of
Final dividend previous year €0.93, respectively
€0.82 per qualifying ordinary share
Interim dividend current year €0.59, respectively
€0.54 per qualifying ordinary share
Total dividend declared and paid
Heineken N.V. Annual Report 2018^ 9
For 2018, a payment of a total cash dividend of €1.60 per share (2017: €1.47) will be proposed at the
AGM. If approved, a final dividend of €1.01 per share will be paid on 8 May 2019, as an interim dividend of
€0.59 per share was paid on 9 August 2018. The payment will be subject to 15% Dutch withholding tax.
After the balance sheet date, the Executive Board proposed the following appropriation of profit.
The dividends, taking into account the interim dividends declared and paid, have not been provided for.
In millions of
Dividend per qualifying ordinary share €1.60 (2017: €1.47)
Addition to retained earnings
The non-controlling interests (NCI) relate to minority stakes held by third parties in HEINEKEN consolidated
subsidiaries. The total non-controlling interest as at 31 December 2018 amounted to €1,182 million
(2017: €1,200 million).
There were no major changes in HEINEKEN's approach to capital management during the year.
The Executive Board's policy is to maintain a strong capital base so as to maintain investor, creditor and
market confidence and to sustain future development of the business and acquisitions.
HEINEKEN is not subject to externally imposed capital requirements other than the legal reserves.
Shares are purchased from time to time to meet the requirements of the share-based payment awards,
as further explained in note 6.5.
Ordinary shares are classified as equity. When share capital recognised as equity is repurchased, the
amount of the consideration paid, which includes directly attributable costs, is net of any tax effects
recognised as a deduction from equity. Repurchased shares are classified as treasury shares and are
presented in the reserve for own shares.
When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase
in equity, and the resulting surplus or deficit on the transaction is transferred to or from retained earnings.
Dividends are recognised as a liability in the period in which they are declared.