Notes to the Consolidated Financial Statements (continued)
13.2 Off-balance sheet commitments
-
-
-
-
-
-
13.3 Related parties
Key management remuneration
O O Qs
Introduction Report of the Executive Board Report of the Supervisory Board
The raw materials purchase contracts mainly relate to malt, bottles and cans which are used in the
production and sale of finished products.
Total
Less than
1-5
More than
Total
In millions of
2019
1 year
years
5 years
2018
Operating lease commitments
2,013
Property, plant and equipment ordered
321
309
12
305
Raw materials purchase contracts
8,827
2,804
4,901
1,122
7,571
Marketing and merchandising commitments
1,051
380
667
4
635
Other off-balance sheet obligations
2,005
486
622
897
4,375
Off-balance sheet obligations
12,204
3,979
6,202
2,023
14,899
Undrawn committed bank facilities
3,750
69
3,681
3,845
As per the introduction of IFRS 16, operating lease commitments are capitalised on balance as per 1 January
2019. The discounted future lease commitments are reported under Borrowings (refer to note 11.3 for more
information). The contractual maturities for the capitalised leases are included in the table of note 11.5.
Other off-balance sheet obligations include energy, distribution and service contracts. In 2018, other
off-balance sheet obligations included HKD24.3 billion (€2.7 billion as at 31 December 2018) for the
committed amount for acquiring the shareholding of 40% in CRH (Beer) Limited by HEINEKEN, which
was closed in 2019 (refer to note 10.3).
Committed bank facilities are credit facilities on which a commitment fee is paid as compensation for
the bank's requirement to reserve capital. The bank is legally obliged to provide the facility under the
terms and conditions of the agreement.
Accounting policies
Off-balance sheet commitments are not discounted.
Operating lease commitments (applicable for 2018)
Operating leases are not recognised in HEINEKEN's statement of financial position. Payments made under
operating leases are charged to profit or loss on a straight-line basis over the term of the lease. When an
operating lease is terminated before the lease period has expired, any payment required to be made to
the lessor by way of penalty is recognised as an expense in the period in which termination takes place.
The lease commitments contain the lease payments for the non-cancellable period of a lease and the
period for extension options that are reasonably certain to be exercised.
Raw materials purchase contracts
Raw material purchase contracts include long-term purchase contracts with suppliers in which prices
are fixed or will be agreed based upon predefined price formulas.
Financial Statements
Sustainability Review
Heineken N.V. Annual Report 2019
Other Information
Identification of related parties
The following parties are considered to be related to Heineken N.V.:
- Key management personnel: the Executive Board and the Supervisory Board.
- Parent company Heineken Holding N.V. and ultimate controlling party Mrs. Carvalho-Heineken (refer to
'Shareholder Information').
- Associates and Joint ventures of Heineken N.V.
- Shareholder with significant influence Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA).
- HEINEKEN pension funds (refer to note 9.1).
- Employees of HEINEKEN (refer to note 6.4).
In millions of
2019
2018
Executive Board
10.8
12.0
Supervisory Board
1.5
1.0
Total
12.3
13.0
Executive Board
The remuneration of the members of the Executive Board consists of a fixed component and a variable
component. The variable component is made up of a Short-term incentive (STI) and a Long-term incentive
(LTI). The STI is based on financial and operational measures (75%) and on individual leadership measures
(25%) as set by the Supervisory Board at the beginning of the year. Refer to note 6.5 for information related
to the LTI component. The separate Remuneration Report is stated on pages 54-62.
