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104
Notes to the Consolidated Financial Statements
Fair value reserve
Accounting policies
Heineken N.V. Report of the Report of the Financial Sustainability Other
Annual Report 2020 Introduction Executive Board Supervisory Board Statements Review Information
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.
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.
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 2020.
Number of
Reserve for own shares
shares
1 January 2020
694,570
Changes
(414,838)
31 December 2020
279,732
Dividends
The following dividends were declared and paid by HEINEKEN:
In millions of
2020
2019
Final dividend previous year €1.04, respectively €1.01 per qualifying share
Interim dividend current year €nil, respectively €0.64 per qualifying share
599
581
368
Total dividend declared and paid
599
949
For 2020, a payment of a total cash dividend of €0.70 per share (2019: 1.68) will be proposed at the AGM on
22 April 2021. If approved, the full dividend will be paid on 6 May 2021, as no interim dividend was paid during
2020. The payment will be subject to a 15% Dutch withholding tax.
After the balance sheet date, the Executive Board proposed the following appropriation of loss. The dividends
have not been provided for.
In millions of
2020
2019
Dividend per qualifying share €0.70 (2019: €1.68)
Addition to/(reduction of) retained earnings
403
(607)
967
1,199
Net profit/(loss)
(204)
2,166
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 2020 amounted to €1,000 million (2019: €1,164 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.
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.
