Notes to the Consolidated Financial Statements (continued)
11.5 Credit, liquidity and market risk
O O Qs
Introduction Report of the Executive Board Report of the Supervisory Board
For 2019, a payment of a total cash dividend of €1.68 per share (2018: €1.60) will be proposed at the AGM.
If approved, a final dividend of €1.04 per share will be paid on 7 May 2020, as an interim dividend of €0.64
per share was paid on 8 August 2019. 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
2019
2018*
Dividend per qualifying share €1.68 (2018: €1.60)
967
912
Addition to retained earnings
1,199
1,001
Net profit
2,166
1,913
Restated for IAS 37. Refer to note 4 for further details.
Non-controlling interests
The non-controlling interests (NCI) relate to minority stakes held by third parties in HEINEKEN consolidated
subsidiaries. The total NCI as at 31 December 2019 amounted to €1,164 million (2018: €1,183 million).
Capital management
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.
Accounting policies
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 recorded at purchase price 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.
Financial Statements
Sustainability Review
Heineken N.V. Annual Report 2019B10
Other Information
This note summarises the financial risks that HEINEKEN is exposed to, and HEINEKEN's policies and
processes that are in place for managing these risks. For more information on derivatives used in
managing risk refer to note 11.6.
Risk management framework
The Executive Board sets rules and monitors the adequacy of HEINEKEN's risk management and
control systems. These systems are regularly reviewed to reflect changes in market conditions and
HEINEKEN's activities.
Managing the financial risks and financial resources includes the use of derivatives, primarily spot and
forward exchange contracts, options and interest rate swaps. It is HEINEKEN's policy not to enter into
speculative transactions.
In the normal course of business HEINEKEN is exposed to the following financial risks:
- Credit risk
- Liquidity risk
- Market risk
Credit risk
Credit risk is the risk of a loss to HEINEKEN when a customer or counterparty fails to pay. All local operations
are required to comply with the Global Credit Policy and develop local credit management procedures
accordingly. HEINEKEN reviews and updates the Global Credit Policy periodically to ensure that adequate
controls are in place to mitigate credit risk.
Credit risk arises mainly from HEINEKEN's receivables from customers like trade receivables, loans to
customers and advances to customers. At the balance sheet date, there were no significant concentrations
of credit risk.
