Notes to the Consolidated Financial Statements (continued)
11.4 Capital and reserves
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O O Qs
Introduction Report of the Executive Board Report of the Supervisory Board
The IBR is determined on a country level. For each country there are separate rates depending on the
contract currency and the term of the lease. The IBR is calculated based on the local risk free rate plus
a country default spread and a credit spread.
The lease term is determined as the non-cancellable period of a lease, together with:
- Periods covered by a unilateral option to extend the lease if HEINEKEN is reasonably certain to make use
of that option.
- Periods covered by an option to terminate the lease if HEINEKEN is reasonably certain not to make use of
that option.
HEINEKEN applies the following practical expedients for the recognition of leases:
- Apply a single discount rate per country to a portfolio of leases with reasonably similar characteristics.
- Include non-lease components in the lease liability for equipment leases.
Share capital
Refer to the table below for the issued share capital as at 31 December. All issued shares are fully paid.
2019
2018
Nominal value in
Nominal value in
Share capital
Shares of €1.60
millions of
Shares of €1.60
millions of
1 January
576,002,613
922
576,002,613
922
Changes
31 December
576,002,613
922
576,002,613
922
The Company's authorised capital amounts to €2,500 million, consisting of 1,562,500,000 shares.
The shareholders are entitled to receive dividends as declared from time to time and are entitled to one
vote per share at shareholder meetings of the Company. In respect of the treasury shares that are held by
HEINEKEN, rights are suspended.
Share premium
As at 31 December 2019, the share premium amounted to €2.701 million (2018: €2,701 million).
Translation reserve
The translation reserve comprises foreign currency differences arising from the translation of the assets and
liabilities of foreign operations of HEINEKEN (excluding amounts attributable to non-controlling interests)
as well as value changes of the hedging instruments in the net investment hedges. HEINEKEN considers
this a legal reserve.
Financial Statements
Sustainability Review
Heineken N.V. Annual Report 20191100
Other Information
Hedging reserve
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 legal reserve.
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 2019.
Reserve for own shares
Number
of shares
1 January 2019
5,823,026
Changes
(5,128,456)
31 December 2019
694,570
Dividends
The following dividends were declared and paid by HEINEKEN:
In millions of
2019
2018
Final dividend previous year €1.01, respectively €0.93
per qualifying share
581
531
Interim dividend current year €0.64, respectively €0.59
per qualifying share
368
335
Total dividend declared and paid
949
866
