214
Glossary
Net debt
Eia
Net revenue
Consolidation changes
Beia
Changes as a result of acquisitions and disposals.
Introduction
Gross merchandise value
Organic growth
Gross savings
Earnings per share (EPS)
EBITDA
Cash conversion ratio
Effective tax rate
Depletions
Sales by distributors to the retail trade.
Dividend payout
Proposed dividend as percentage of net profit (beia).
Net revenue per hectolitre
Net revenue divided by total consolidated volume.
Sustainability
Review
Other
Information
Financial
Statements
Report
of the
Supervisory
Board
Report
of the
Executive
Board
Average effective interest rate
Net interest income and expenses related to the net
debt position divided by the average net debt position
calculated on a quarterly basis.
Before exceptional items and amortisation of
acquisition-related intangible assets.
Whenever used in this report, the term "beia” refers to
performance measures (EBITDA, net profit, effective
tax rate, etc) before exceptional items and
amortisation of acquisition related intangible assets.
Beyond Beer
Alcoholic and non-alcoholic beverage propositions
beyond core beer, which leverage natural ingredients
and/or beer production process. This includes for
example flavoured beer, Ciders, RTDs (Ready-To-
Drinks) and malt based drinks.
This represents the total of cash flow from sale and
purchase of Property, plant and equipment and
Intangible assets, proceeds and receipts of Loans to
customers and Other investments.
Capital expenditure related to PP&E and
intangible assets (capex)
Sum of ‘Purchase of property, plant and equipment’
and ‘Purchase of intangible assets’ as included in the
consolidated statement of cash flows.
Free operating cash flow/net profit (beia) before
deduction of non-controlling interests, calculated on
an annual basis.
Cash flow (used in)/from operational investing
activities
Centrally available financing headroom
This consists of the undrawn part of the committed
€3.5 billion revolving credit facility and centrally
available cash, minus centrally issued commercial
paper and short-term bank borrowings at group level.
Diluted
Net profit/(loss) divided by the weighted average
number of shares - diluted - during the year.
Basic
Net profit/(loss) divided by the weighted average
number of shares - basic - during the year.
Earnings before interest, taxes, net finance expenses,
depreciation, amortisation and impairment. EBITDA
includes HEINEKEN’s share in net profit of joint
ventures and associates.
Income tax expense expressed as a percentage of the
profit before income tax, adjusted for share of profit
of associates and joint ventures.
Centrally available cash
Represents cash after the deduction of overdraft
balances in the group cash pooling structure and other
cash and cash equivalents owned at group level.
Free operating cash flow
Total of cash flow from operating activities and cash
flow from operational investing activities.
Exceptional items
Items of income and expense of such size, nature or
incidence, that in the view of management their
disclosure is relevant to explain the performance of
HEINEKEN for the period.
Value of all products sold via our eB2B platforms. This
includes our own and third-party products, including all
duties and taxes.
Structural cost reductions resulting from targeted
initiatives to improve efficiency and productivity,
relative to the baseline of expenses of a previous
period adjusted for inflation. The gross savings
exclude cost-to-achieve, consolidation changes and
decisions to reinvest.
Group net revenue (beia)
Consolidated net revenue (beia) plus attributable
share of net revenue (beia) from joint ventures and
associates.
Group operating profit (beia)
Consolidated operating profit (beia) plus attributable
share of operating profit (beia) from joint ventures
and associates, excluding Head Office and
eliminations.
Exceptional items and amortisation of acquisition-
related intangible assets.
Revenue as defined in IFRS 15 (after discounts) minus
the excise tax expense for those countries where the
excise is borne by HEINEKEN.
Growth excluding the effect of foreign currency
translational effects, consolidation changes, exceptional
items and amortisation of acquisition-related intangible
assets.
Price mix on a constant geographic basis
Refers to the different components that influence net
revenue per hectolitre, namely the changes in the
absolute price of each individual SKU and their weight
in the portfolio. The weight of the countries in the
total revenue in the base year is kept constant.
Non-current and current interest-bearing borrowings
(incl. lease liabilities), bank overdrafts and market
value of cross-currency interest rate swaps less cash,
cash equivalents and other investments.
Net profit
Profit after deduction of non-controlling interests (profit
attributable to shareholders' of the Company).
Organic Growth
Organic growth divided by the related prior year beia
amount. Whenever used in this report, the term
"organically” refers to the organic growth of the
related performance measures (revenue, operating
profit, net profit, etc).
Organic volume growth
Growth in volume, excluding the effect of
consolidation changes.
Acquisition-related intangible assets
Acquisition-related intangible assets are assets that
HEINEKEN only recognises as part of a purchase price
allocation following an acquisition. This includes,
among others, brands, customer-related and certain
contract-based intangibles.
Heineken
N.V.
Annual
Report
2023
