Annual Report 2002

Transcription

Annual Report 2002

>Annual Report 2002
> Profile
Heineken has the widest global presence of all the inter-
segment. Amstel, the second largest beer brand in Europe,
national brewers, operating in over  countries* and
is generally positioned in the mid-priced mainstream seg-
employing , people around the world. With total sales
ment, the largest segment of the market. The Group’s inter-
of . million hectolitres in , Heineken is also among
national brands are supplemented and supported by
the largest. Beer is produced at over  breweries in more
national and regional brands and a portfolio of speciality
than  countries and by other brewers under licence.
beers (which differ from lager in flavour, colour or brewing
Heineken also has a strong export business.
method), light beers (low-calorie beers) and alcohol-free
Europe accounts for over half of the sales volume.
beers. Heineken has a very limited presence
in the low-priced segment.
Roots , aim s a nd s tra te gy
Heineken has its roots in Amsterdam, where Gerard
Distribution
Adriaan Heineken purchased a brewery in . In the ensu-
Heineken seeks to achieve comprehensive coverage in
ing decades, under the leadership of three generations of
each market, through alliances with independent distrib-
the Heineken family and pursuing a policy of measured
utors or via our own beverage wholesalers. Heineken
expansion and consistent brand development, Heineken
owns numerous wholesalers in Europe which, in addition
has grown into one of the world’s leading
to beer, also supply a supporting range of soft drinks,
brewing groups. Core values within the company include
wines and spirits to the on-trade. Some of the soft drinks
respect, enjoyment and a passion for quality.
are produced by Heineken.
Heineken aims to defend and strengthen its global market position and preserve its independence by retaining its
Research and development
place among the largest brewing groups in the world in
Innovation is very important to a leading company like
terms of beer sales and profitability, based on a portfolio of
Heineken, especially in reinforcing the competitive position
strong brands with Heineken as the leading international
of the international Heineken and Amstel brands. In pursuit
premium beer.
of its commitment to quality, lower cost, greater safety
In many countries Heineken has secured strong market
and lower environmental impact, Heineken works hard to
positions and an efficient cost structure by combining
improve all the technical processes involved in brewing,
the production, marketing and sale of the international
packaging and supply chain management. Work in these
Heineken premium brand with that of a selection of promi-
areas is coordinated by the Group’s research and develop-
nent local brands. This generates above-average returns
ment centre in the Netherlands, which makes its services
and creates added value for our shareholders. Heineken
available to group companies and associated breweries
seeks long-term profit growth by expanding in existing
all over the world.
markets and entering new markets. Heineken attaches
great importance to having a responsible policy on alcohol
Ownership structure and stock exchange listing
abuse and good social and environmental policies.
Heineken Holding N.V. holds .% of the Heineken N.V.
shares. Heineken Holding N.V. engages in no operational
Brands
activities: these are carried on by Heineken N.V. and
Heineken has built its strong international and local market
its related companies. Heineken N.V. is responsible for the
positions by developing and regularly updating its cohesive
development and implementation of strategy. Heineken
portfolio of strong brands which offer high added value for
Holding N.V. is concerned primarily with safeguarding
its customers and consumers.
the long-term continuity, independence and stability of
The group’s principal international brands are Heineken
Heineken’s activities. The net asset values of both shares
and Amstel. Heineken has the widest global presence
and the dividend policies of both companies are identical.
of any international beer brand and is the leading brand in
Both shares are traded on Euronext Amsterdam, as are
Europe. In virtually all markets, the Heineken brand’s quali-
options on the shares.
ty and image mean that it can be positioned in the premium
* The full list of breweries
and operating companies can
be found on pages 76 - 79.
Contents
This is an English translation of the original Dutch language report.
Both can be downloaded from www.heinekeninternational.com
Page
3
Key F igures  
4
Executive Board
5
Superv isory Board
6
Report of the Superv isory Board
8
Report of the Executive Board
8
Foreword by the Chairman
11
Outlook for 
13
 in Retrospect
13
Heineken
13
Amstel
14
International Speciality Beers
15
Research and Development
15
Health, Safety and Environment
16
Alcohol and Society
16
Personnel
18
Regional Review
19
Europe
28
Western Hemisphere
32
Africa/Middle East
36
Asia/Pacific
40
Financial Review
44
Heineken Prizes 
45
F ina nc ial St atem en t s  
46
Consolidated Balance Sheet
47
Consolidated Profit and Loss Account
48
Consolidated Cash Flow Statement
49
Notes to the Consolidated Balance Sheet, Profit and Loss Account
and Cash Flow Statement for 
52
Notes to the Consolidated Balance Sheet
58
Notes the Consolidated Profit and Loss Account
63
Notes to the Consolidated Cash Flow Statement
64
Participating Interests
66
Balance Sheet of Heineken N.V.
67
Profit and Loss Account of Heineken N.V.
68
Notes to the Balance Sheet and Profit and Loss Account
of Heineken N.V. for 
71
Other information
71
Auditors’ Report
71
Appropriation of Profit
71
Special Rights pursuant the Articles of Association
71
Authorised Capital
71
Events after Balance-Sheet Date
72
Supplementary information
72
Information for Shareholders
74
Historical Summary
76
Operating Companies and Participating Interests
795
840
780
24
9
16
8
70
14
7
60
12
6
50
10
5
40
8
4
180
30
6
3
120
20
4
2
60
10
2
1
0
0
0
0
420
10.8
10.8
10.5
274
301
300
297
345
360
83.1
80
445
480
10.8
22.4
19.4
10.0
10
18
90.9
90
516
540
11
21.6
108.9
20
20.4
100
97.9
600
22
105.1
110
621
660
22.9
715
720
19
9
19 8
9
20 9
0
20 0
0
20 1
02
19
9
19 8
99
20
0
20 0
0
20 1
02
19
9
19 8
9
20 9
0
20 0
0
20 1
02
19
9
19 3
94
19
9
19 5
9
19 6
9
19 7
9
19 8
9
20 9
0
20 0
0
20 1
02
236
240
Net profit
Total beer sales
Heineken sales
Amstel sales
on ordinary activities
in millions of hectolitres
in millions of euros
2
Key Figures 2002
2002
2001
Change (%)
10.3
Results in millions of euros
10,293
9,333
Operating profit
1,282
1,125
14.0
EBITDA
1,811
1,601
11.3
Net turnover (incl. excise duties)
Net profit excl. extraordinary result
795
715
11.2
Net profit incl. extraordinary result
795
767
3.7
Dividend
157
157
–
1,184
1,165
1.6
Total assets
7,781
7,195
8.1
Group equity
2,936
3,139
– 6.5
Shareholders’ equity
2,543
2,758
– 7.8
784
784
–
Cash flow from operating activities
Balance sheet in millions of euros
Issued capital
Per share of €2.00
391,979,675
391,979,675
–
3.02
2.97
1.6
Net profit on ordinary activities
2.03
1.82
11.2
EBITDA
4.62
4.08
11.3
CEPS
2.05
1.83
12.0
Dividend
0.40
0.40
–
6.49
7.04
– 7.8
Europe (incl. Exports)
8,920
8,077
10.4
Western Hemisphere
1,373
1,176
16.8
Africa/Middle East
835
776
7.6
Asia/Pacific
476
472
0.8
Investments less disposals
696
578
20.4
Depreciation and value adjustments
481
465
3.4
48,237
40,025
20.5
5,527
5,620
– 1.7
Operating profit as % of net turnover
12.5
12.1
Operating profit as % of total assets
16.4
15.6
Net profit as % of shareholders’ equity
31.3
25.9
Dividend as % of net profit on ordinary activities
19.7
22.0
Group equity/other borrowed capital
0.61
0.77
Group equity/fixed assets
0.59
0.76
Current assets/current liabilities
1.06
1.37
Interest cover ratio
12.2
16.5
Number of shares issued
Net turnover in millions of euros
(incl. interregional sales)
Tangible fixed assets in millions of euros
Staf f in numbers
Average number of employees
of which employed by Dutch operating companies
Ratios
3
Executive Board
A . R uys ( 19 4 7 )
S . W. W. L u b s e n ( 1 9 4 4 )
M . J . B o l l a n d ( 19 5 9 )
Dutch nationality
Dutch nationality
Dutch nationality
Chairman
 Member 
 Member
J . F. M . L . v a n B o x m e e r ( 1 9 6 1 )
D . R . H o of t G ra a f l a n d ( 19 5 5 )
Belgian nationality
Dutch nationality
 Member
 Member 
 Member
 Vice-Chairman
 Chairman
HEINEKEN N.V. ANNUAL REPORT 2002
4

until 31 December 2002

from 1 May 2002
Supervisory Board
(as at 25 February 2003)
J . M . d e J o n g ( 19 4 5 )
H . d e R u i te r ( 19 3 4 )
J . M . H e s s e l s ( 19 4 2 )
Dutch nationality
Dutch nationality
Dutch nationality
Appointed in 
Appointed in 
Appointed in 
Chairman
Last reappointed in 
Member of the Audit Committee
Chairman of the Preparatory
Chairman of the Audit Committee
Profession: Company Director
Committee
Profession: Engineer
Supervisory Directorships:
Profession: Banker
• Euronext N.V.
• Koninklijke Ahold N.V.
• Laurus N.V.
M . D a s ( 19 4 8 )
• Aegon N.V.
• Schiphol Groep N.V.
Dutch nationality
• N.V. Koninklijke Nederlandsche
• Koninklijke Vopak N.V.
Appointed in 
Petroleum Maatschappij
Last reappointed in 
• Wolters Kluwer N.V.
Delegated Member
• Univar N.V.
Secretary of the Preparatory
• Royal Philips Electronics N.V.
• Fortis N.V.
C . J . A . va n L e d e ( 19 4 2 )
Committee
M . R . d e C a r va l h o ( 19 4 4 )
Dutch nationality
Profession: Lawyer
British nationality
Appointed in 
Partner in Loyens & Loeff
Appointed in 
Member of the Preparatory
Management Board:
Last reappointed in 
Committee
• Heineken Holding N.V.
Member of the Preparatory
Committee
Chairman and CEO of Akzo Nobel N.V.
J . L o u d o n ( 19 3 6 )
Profession: Banker
Dutch nationality
Vice-Chairman/Investment Banking
• De Nederlandsche Bank N.V.
Appointed in 
Citigroup Inc., United Kingdom
• Sara Lee Corp. (USA)
A . H . J . R i s s e eu w ( 19 3 6 )
• Scania AB (Sweden)
Profession: Banker
Dutch nationality
• Member of the Netherlands Pensions
Chairman of Caneminster Limited,
Appointed in 
United Kingdom
Last reappointed in 
Sara Lee/DE N.V. (Netherlands)
• KPN N.V.
• Samas-Groep NV
• AOT NV
Two members of the Supervisory Board retire
each year in accordance with a rota which is
determined annually.
Only supervisory directorships and positions with
large quoted Dutch companies and/or Heineken
operating companies are listed here. A complete
list of the other positions held is given when
members of the Supervisory Board are nominated
for (re)appointment.
5
and Insurance Supervisory Authority
Report of the Supervisory Board
To the shareholders
as a member of the Supervisory Board of Heineken Neder-
We were greatly saddened to learn of the death of
lands Beheer B.V.
Mr. A.H. Heineken on  January , at the age of .
Messrs. J. Loudon and M.R. de Carvalho are due to retire
His memory was celebrated at the Annual General Meeting
by rotation from the Supervisory Board of the company.
of Shareholders on  April .
A binding nomination for the -appointment of Mr. de
Carvalho, who is eligible for immediate re-election, will be
The Executive Board has submitted its financial
submitted to the Annual General Meeting on  April .
statements for  to the Supervisory Board. These
Mr. Loudon has announced that, having been a member
financial statements, which can be found on pages  to
of the Supervisory Board for  years, he would not seek
 of this annual report, have been audited by KPMG
re-election again. The Supervisory Board thanks
Accountants N.V., whose report appears on page .
Mr. Loudon for active contribution and long service to the
Board.
Dividend proposal
The Supervisory Board recommends that you adopt these
Corporate governance
financial statements and, as proposed by the Executive
The Supervisory Board is aware of the higher standards
Board, appropriate € million of the profit as dividend
of corporate governance which are now required and
and add the remainder, amounting to € million, to the
devoted some time last year to the consideration, in dia-
general reserve. The proposed dividend amounts to €.
logue with the Executive Board, of its own operating
per share of €. nominal value, of which €. was paid
procedures and the way in which supervision and support
as interim dividend on  September . The dividend
of the Executive Board are organised and function within
for  was €..
the Company. Since there is a conflict between exercising
supervision, which obliges the Supervisory Board to keep
Board changes
some distance from the Executive Board, and providing
Messrs. J.M. de Jong and C.J.A. van Lede were appointed
expert advice, which requires close involvement, it is
to the Supervisory Board of the company and Mr. De Jong
essential that decision-making procedures are properly
was appointed chairman at the Annual General Meeting
structured and transparent. Against this background,
of Shareholders on  April . Messrs. R. Hazelhoff and
the procedures for the notification of plans to, and evalua-
L. van Vollenhoven retired by rotation and, having reached
tion of plans by, the Supervisory Board were examined
the age limit laid down in the Articles of Association,
and found to be adequate. The Supervisory Board also
were not eligible for reappointment. Mr. A. Maas stood
discussed the Sarbanes-Oxley Act, a piece of US legislation
down from the Supervisory Board at his own request.
which is not applicable to Heineken N.V. because the
The Supervisory Board thanks all of them for their service
Company is exempt under Rule g-b of the US Securities
to the Board.
Exchange Act.
Mr. A. Ruys was appointed Chairman of the Executive
Board, of which he has been a member since September
Consultation and decision-making
 and Vice-Chairman since , to succeed
The Supervisory Board held six joint meetings with the
Mr. K. Vuursteen who stood down at the same meeting.
Executive Board in . The agenda of these meetings
We thank Mr. Vuursteen for his leadership and for the
included a number of regular items, including considera-
invaluable contribution he made to the company’s growth.
tion of the company’s strategy, financial position and
Mr. D.R. Hooft Graafland was appointed to the Executive
results, the operating companies’ policies and business
Board by the Annual General Meeting with effect from
plans, acquisitions and other investment proposals and
 May .
management development. Other items on the agenda
Mr. S.W.W. Lubsen, who had been a member of the
included evaluation of completed investment projects,
Executive Board since , retired from the Board at his
interest-rate and exchange-rate risks, financing, pensions
own request with effect from  December .
and internal control systems. Meetings convened to con-
The Supervisory Board thanks Mr. Lubsen for all his work
sider the results were attended by the external auditors.
on behalf the company and his contribution to its success.
Mr. Lubsen will continue to be involved with the company
6
Strategy and acquisitions policy were discussed at
length at two of the meetings. One meeting was devoted
Report of the Supervisory Board
to a presentation on and discussion of the ‘Taking Heineken
to the Next Level’ reorganisation programme initiated by
which was attended by the external auditors.
The Supervisory Board takes this opportunity to thank
the Executive Board. The Supervisory Board also discussed
the Executive Board and all the staff for their continued
developments in the field of information and communica-
commitment in .
tions technology.
At three of the meetings, the Executive Board withdrew
Amsterdam, 25 February 2003
while the Supervisory Board discussed its functioning and
composition and that of the Executive Board.
Supervisory Board
The Preparatory Committee, which is responsible for
preparing decision-making by the Supervisory Board,
De Jong
de Carvalho
including decisions relating to the remuneration of the
Das
Risseeuw
Executive Board, met six times.
Loudon
Hessels
The Audit Committee held two meetings last year, one of
De Ruiter
Van Lede
7
Net prof it
O p e ra ting p rof it
€ million
€, million
+ .%
+ %
profit as a percentage of net turnover) increased for the
seventh consecutive year, rising to .% in .
The second objective is to consolidate our leading position as the international brewer with the strongest portfolio
of beer brands. Sales of our Heineken brand increased last
year to . million hl (+.%), mainly reflecting vigorous
Net turnover
Total beer sales
€. billion
. million hl
made good progress in strengthening the positions of our
+ .%
+ .%
other international and local beers, as evidenced by the
growth in the United States, Poland and Thailand. We also
.% growth in sales of Amstel Light in the United States and
Heineken beer sales
the rising sales of Desperados, our speciality beer. Sales
of Amstel, which is positioned in the mainstream segment,
. million hl
remained steady at . million hl.
+ .%
Merger and acquisition activity continues
The process of consolidation and internationalisation in
Foreword by t he Cha irma n
the brewing industry around the world continued in .
In pursuit of its unvarying strategic objectives, Heineken
This process is already well advanced in most countries,
continued resolutely on its course in 2002. The climate
but in China, Russia and Germany in particular the market
in which we had to operate was dictated by a flagging
is still relatively fragmented. In some European countries,
global economy and wet weather in Europe. Net profit on
Heineken’s market share is so large that we are no longer
ordinary activities was 11.2% higher at €795 million.
able to obtain competition authority approval for further
Profitable companies with good development potential
acquisitions, while in other cases the purchase price bears
were acquired, while we worked steadily on improving
no relation to the value of the potential acquisition
our organisation’s effectiveness and strengthening our
together with any synergy gains. Although, in Western and
ties with customers, suppliers and consumers.
Southern Europe in particular, there are fewer opportunities now than in the s and s, when Heineken
The increase in operating profit reflects both organic
played a prominent role in consolidating and building
growth and contributions by newly consolidated partici-
breweries, there are still ample opportunities to acquire
pating interests. Higher beer sales, a better sales mix and
breweries with national or cross-border positions which
higher selling prices were responsible for the organic
offer sufficient added value for shareholders and can help
growth in turnover. Demand for international beers and
to grow profits. In  we were, however, able to acquire
national premium beers in the global market continued
breweries which met our criteria.
to rise, and sales were substantially higher in the United
States and Poland in particular. Although increased sales
Acquisitions in 
of the Heineken brand accounted for much of the improve-
The acquisitions we made in  and early  have
ment in the sales mix, other beers such as Amstel Light
strengthened Heineken’s positions in Russia, the Middle
and our speciality beers, notably Desperados, also helped.
East, Germany, Central and South America, Kazakhstan
and the Balkans. Heineken sees all these regions and coun-
Consistent implementation of strategy
tries as growth markets for the business.
It is still our goal to defend and strengthen our global mar-
The acquisition of the Bravo International brewery in
ket position and preserve our independence. Two strategic
Russia has secured a strong starting position for Heineken
objectives have been defined to help us realise that goal.
in the world’s fifth largest beer market.
The first is to achieve profitable volume growth. Last
In Egypt, we made a successful public offer for the
year, organic growth and acquisitions raised our beer
shares in Al Ahram Beverages Company, the country’s only
sales to . million hl, making us the world’s third largest
brewer, which also produces and distributes a comple-
brewer and yielding economies of scale at all levels in the
mentary range of other drinks, and in Lebanon we in-
supply chain. Our average operating margin (operating
creased our stake in the Almaza brewery from % to %.
8
F R O M L E F T T O R I G H T : G U U S L U B S E N , J E A N F R A N Ç O I S VA N B O X M E E R , T H O N Y R U Y S , R E N É H O O F T G R A A F L A N D , M A R C B O L L A N D
Both businesses are performing well on their home mar-
chased a .% stake in Cervecerias Barú-Panama, the
kets and will provide valuable support for our Middle East
country’s second largest brewery. The Central American
expansion.
countries have good long-term economic growth
In Germany, we reached agreement, via our joint
venture BrauHolding International, on the purchase of
prospects, their populations include a high proportion of
young people and their beer markets are growing.
% of the shares in Karlsberg International Brand, which
In Brazil, we converted our % interest in the Kaiser
has a strong position in the Saarland and Rheinland-Pfalz
breweries into a % interest in Cervejarias Kaiser Brasil,
regions. The large German beer market, though still
a company created by the Canadian brewer Molson Inc.,
fragmented, offers good potential for growing our market
which purchased Kaiser and combined it with the pre-
share and reducing costs.
viously acquired Bavaria brewing group.
In Costa Rica, we acquired a % stake in Florida
In Kazakhstan, we increased our interest in the Dinal
Bebidas, the country’s only brewery, which also owns a
brewery, which has an % share of this rapidly growing
modern fruit drinks plant and has interests in bottled
beer market, to %.
water. Heineken also acquired an % interest in COCECA,
the only brewery in Nicaragua, and in Panama we pur-
REPORT OF THE EXECUTIVE BOARD
9
In early  we acquired Schörghuber Corporate
Group’s % interest in IRSA, which has a % interest
holding in CCU, the largest brewery in Chile with an %
dialogue with this age group. We are working with young
share of its home market. Licensing agreements have
adults, selected as representative of their target groups,
been signed with CCU for the brewing and distribution of
to evaluate our current marketing activities and devise
Heineken beer in Chile and Argentina. Our % interest
and implement new activities to reinforce and optimise
in the holding company Quilmes International Bermuda
young people’s affinity with our brands on a market-by-
was sold at a net book profit of € million and the licens-
market basis. We can only keep our brands young, strong
ing agreements with Quilmes were terminated.
and relevant if we strike the right balance between brand
Also in early  we reached an agreement in principle
with Southern Breweries Establishment on the acquisition
consistency and prompt updating of our marketing communication to reflect cultural change.
of a .% interest in Karlovacka Pivovara, the second
largest brewery in Croatia, which has a % market share
Cooperation
and also exports within the Balkans.
We aim to integrate our support services in the Netherlands so that our accumulated expertise and available
Taking Heineken to the Next Level
capacity can be utilised more efficiently. Good progress
A new programme has been launched with the object
has been made with the development of a uniform
of raising our operating efficiency and performance to a
ICT infrastructure and uniform software. New applications
higher level. Greater efficiency and effectiveness and a
have been installed which enable us to work together
management which works closer to the market will help us
more effectively and increase our productivity, and we
to perform better. Maximising our performance is essen-
have continued to develop e-business applications for
tial if we are to achieve our long-term strategic objectives
transactions with our customers and suppliers. Heineken
and retain our place among the world’s top brewing
places great value on the establishment of efficient and
groups. The activities under this programme, which we
transparent relationships with customers and suppliers
call ‘Taking Heineken to the Next Level’, include speeding
which benefit all parties.
up business processes, creating ‘win/win’ situations in our
Cooperation is facilitated by our systems, networks,
dealings with customers, measuring our performance and
databases and training courses and by the knowledge
costs and comparing them with both internal and external
that we always have colleagues somewhere in the world
benchmarks to identifying and implementing best prac-
who have extensive experience with specific market
tices around the world. The aim of the Executive Board is
situations or business processes. In more and more areas,
to foster an inspiring and challenging culture of innovation
it is our people who are making this cooperation a success,
and diversity, as only with such a culture can our employ-
in more and more areas, and I am pleased to see that
ees lift themselves and Heineken to a higher level.
our determination to learn from one another is still growing and that operating companies have taken over many
Young and relevant
successful programmes from one another in the past year.
To maintain brand relevance, it is important to know
I thank all our staff for their untiring enthusiasm, profes-
your target groups well. During , Heineken launched
sionalism and commitment during .
a global programme known as the ‘Beacon’ project to
gather in-depth information on young adults’ aspirations,
Th ony Ruys
motivation and needs, as we place great value on ongoing
Chairman of the Executive Board
10
Outlook for 2003
Although the immediate economic outlook for many
In Latin America, the acquisition in early  of a %
markets is less than bright, Heineken expects the struc-
interest in IRSA, which owns % of CCU in Chile,
tural growth in sales of premium beers and international
has created excellent opportunities for developing our
speciality beers to continue in 2003, perhaps temporarily
business in this region. CCU is to take over the production
at a slightly slower rate, which will further benefit our
and distribution of Heineken beer from our former Argen-
sales mix over the long term. Despite the uncertainties,
tinian partner. Given the economic situation in Argentina,
we are looking forward to sustained growth in net profit in
it is difficult to predict the trend in beer consumption in
2003.
the region in the short term, but we are looking forward to
further sales growth in the longer term.
In developing countries, an economic slowdown will
We do not foresee any significant changes in the
depress beer consumption, because price becomes a sig-
Asia/Pacific region. Beer consumption will continue to
nificant factor for consumers in those countries if their
rise, but the picture may differ markedly from one country
purchasing power is eroded. In the developed countries,
to another. We predict sustained growth of both the
beer consumption will be relatively unaffected by an
Heineken brand and our local brands.
economic downturn, though there may be a temporary
Africa has great growth potential, but whether that
shift towards lower-priced beers, mainly at the expense of
potential is realised will depend largely on how consumer
mainstream beers. We do not expect the premium and
purchasing power develops. Many of the local economies
international speciality beer segments to decline, as price
are reliant on the world market prices for oil, minerals
is not a significant factor in those segments and the trend
and agricultural commodities. The future trend in these
towards ‘less but better’ is too strong. Given our strong
prices is hard to forecast, making it difficult to give short-
position in the premium segment, we can therefore look
term predictions for the beer markets in this region.
forward to a further improvement in our sales mix.
Acquisitions, investments and cost-savings
Regions
It is a requirement that new acquisitions must contribute
If there is any growth in the beer market in Western and
to Heineken’s long-term profit growth. One of our primary
Southern Europe, it will only be modest. Our operating
aims is to strengthen our position in attractive, growing
companies in these regions are concentrating primarily
markets.
on reducing costs, strengthening the brand portfolio and
In Europe, we are planning further expansion of our
improving the sales mix, by expanding sales of premium
production capacity to meet the rising export demand.
and speciality beers. The main objective is to secure
The new brewery in Nigeria is scheduled to come on
the largest possible share of the profitable segments of
stream in early , but the brewery in Vietnam will not
the beer market.
be completed before the end of the year. Investments in
In Central and Eastern Europe, the upward trend in beer
tangible fixed assets in  will total around € million,
consumption is only occasionally interrupted by tempo-
which will in principle be financed out of existing cash
rary factors, such as a poorly-performing economy or
reserves and cash flow and if appropriate supplemented
increases in excise duty, so there is scope for us to grow
by external financing.
our sales in this region. Heineken has also invested a great
In early , we acquired an interest in CCU, the
deal of effort in the region in keeping costs as competitive
Chilean brewery group, and sold our holding in Quilmes
as possible and improving the sales mix.
International Bermuda, resulting in a net cash outflow of
In North America, we predict sustained growth in the
€ million. The proposed acquisition of a .% interest
imported beer segment in both the United States and
in Karlovacka Pivovara in Croatia is also part of this com-
Canada. With Heineken and Amstel Light, we are ideally
bined transaction. We also agreed to advance a subordi-
placed to benefit from this trend. The popularity of
nated loan of approximately € million to the pension
‘malternatives’ (ready-to-drink mixes), which are in com-
fund in the Netherlands. These transactions will be funded
petition with a part of the beer market, has passed its
largely by external financing.
peak. Against the background of slower economic growth,
We shall continue to reduce costs and increase efficien-
our pricing policy in  is likely to be more cautious than
cy, which means that, excluding acquisitions, the steady
in .
downward trend in the total number of employees is likely
11
Outlook for 2003
to continue. Other contributory factors, apart from the
breweries will deliver a positive contribution. Despite
ongoing improvements in our business processes, will be
these uncertainties, Heineken expects further growth
the reorganisation projects in Spain and the Netherlands
in net profit in . The possible impact on our results
and the closure of one brewery in Poland.
of increasing international tensions can't be predicted.
We shall also realise a non recurring after tax gain of
Profit forecast
€ million in  on the sale of our % stake in the
Our results are affected from year to year by factors which
Argentinian brewer Quilmes International (Bermuda) Ltd.
are difficult to predict such as exchange rates, govern-
We remain positive regarding the longer-term profit
ment policy and the weather. Further in  higher pen-
outlook, given the success of our corporate strategy,
sion charges, the cost of launching Heineken beer in the
the strength of our brands, our international coverage,
premium segment in the United Kingdom, the effects of
the current debt capacity at our disposal and our exten-
the weaker dollar, the deteriorating economic situation
sive international experience.
in many countries, will also play a role. The newly acquired
You have to work hard to keep
mers, consumers and the wider processes, imaginative new
your place among the leading
community. Heineken strives
packaging designs, welcoming
international brewers. Stand-
for innovation in all links in the
themed bars, interactive com-
ing behind Heineken, Amstel
supply chain. Recent innova-
munication with our target
and our other brands is a global tions include ingenious
groups and new approaches to
organisation working constant- dispensing systems, advances
understanding the needs of
ly to respond to the changing
in quality and safety monitor-
young adults. Some examples
needs and wishes of custo-
ing in the brewing and bottling
are given in this annual report.
> Innovation
2002 in Retrospect
Heineken
activities may differ widely from one market to another,
The Heineken brand achieved sustained growth last year,
it is essential in all cases that the activities are related and
with sales rising from 22.4 million hl to 22.9 million hl
mutually supportive.
(+2.5%). Most of the growth in sales was generated in the
United States, Poland and Thailand.
Heineken focuses its sponsorship activities chiefly on
music, film and selected sporting events, mainly tennis
and rugby. As in , music sponsorship again accounted
The growth of the Heineken brand largely reflects our
for most of the growth in our sponsorship expenditure,
efforts to enhance brand value and secure a higher level
because music is an ideal medium through which to share
of consumer preference while improving availability,
Heineken’s brand values with our target groups.
both via the acquisition of beverage wholesalers, such as
Our music-related activities were amalgamated last year
in France, Italy and Slovakia, and via cooperation with new
to create a new website, www.heinekenmusic.com, to
distribution partners, such as in China and Portugal.
provide a global music platform which enhances the inter-
The development and refinement of our central market-
activity and effectiveness of our music-related marketing
ing information systems has enabled us to optimise the
communication. Thirst, a series of dance events featuring
quality and international consistency of our marketing
both world-class and local DJs, was staged in many
activities and tailor them more closely to individual mar-
countries around the world, to which numerous related
kets and specific target groups within those markets.
activities were linked, both online and via retail outlets.
An important new vehicle for gathering detailed market
The Thirst concept and its execution, including a DJ com-
information is our global ‘Beacon’ project, through which
petition, were based partly on the findings of our new
Heineken engages in dialogue with young adults on their
‘Beacon’ project.
aspirations, motivation and preferences. The findings are
Brand awareness was boosted by our sponsorship of
used as the basis for marketing projects in which substan-
several annual European music festivals, including Green
tive input by and active involvement of this target group
Energy in Ireland, Jammin’ in Italy and the FIB festival in
play an important part. This research also helps us to take
Spain. A number of successful activities were organised
regional and local cultures into account in our marketing
in the United States by Heineken Music Initiative Inc., which
projects and marketing communication.
was formed last year to support young talent. The Green
Updating our packaging and tailoring it to consumers’
needs is a constant priority. Several new can designs were
introduced last year and a new aluminium bottle was
launched in France.
Room Sessions concert series in Singapore won several
international awards.
Our involvement in and expenditure on film sponsorship
also increased, to support the Heineken brand’s international stature. The films we sponsored included Hollywood
Marketing communication
productions such as ‘The Bourne Identity’ and the new
Further advances were made in facilitating the exchange
James Bond film, ‘Die Another Day’.
of expertise and information between our operating
The principal sporting events we sponsored last year
companies in the area of advertising campaigns and other
were the Australian Open, US Open and Masters Cup tennis
brand management tools by expanding and making more
competitions and the Heineken Rugby Cup, a competition
intensive use of our intranet portal and organising brand
for top European clubs. As in , we also sponsored
workshops in local markets. Operating companies in
many local events to reinforce our local identity.
smaller countries or emerging markets are increasingly
using campaigns developed centrally or elsewhere.
Amstel
Adapting a uniform concept for optimum deployment in
While the mainstream beer segment, in which Amstel
local markets benefits the quality and consistency of our
is positioned, contracted in several important European
advertising campaigns.
markets, in many others, especially outside Europe,
Sponsorship and on-line activities, which provide excellent opportunities for responding to the needs and wishes
Amstel recorded growing sales. Amstel’s total sales
volume remained stable at 10.8 million hl.
of specific target groups, accounted for a growing proportion of our total marketing communication effort.
Amstel was not immune to the effects of the declining
Although the mix of marketing communication-related
mainstream beer market. The wet weather and sharply
13
2002 in Retrospect
reduced tourist numbers in Southern Europe had an
of Nations for national football teams, the most important
adverse effect on consumption, but sales in Africa and
sporting event on the African continent. In the United
the United States were substantially higher. Sales also
States, where Amstel Light sponsors leading golf tour-
developed well in a number of new markets in the Balkans
naments, association with this prestige sport fits well with
and in Lebanon and Ireland.
the brand’s image. As in , Amstel also sponsored
As well as lager, Amstel also markets a selection of other
numerous local events with strong local appeal.
beers which have become popular with a broad target
group and are successful in many markets. Amstel Light,
International Speciality Beers
a low-calorie beer, benefited from the rising demand
Demand for speciality beers is rising fast and sales grew
for lighter beers in a number of mature markets, chiefly
strongly in many markets, reflecting the consumer’s need
outside Europe. Sales of Amstel light also rose rapidly
for variety. Sales of our international speciality beers,
in the United States, in response to our greatly increased
which generate above-average margins once a given
marketing effort. Although still modest, sales of Amstel
volume is reached, increased from 1,314,000 hl to
Bright, a speciality Caribbean beer brewed on Curaçao,
1,364,000 hl.
developed promisingly.
Although international speciality beers still represent
Marketing communication
only a small proportion of Heineken’s total sales, they have
The growing exchange of expertise and intelligence be-
growth potential and help to improve the sales mix.
tween our operating companies is benefiting the quality,
In more and more markets, they are a permanent part of
consistency, efficiency and local optimisation of Amstel’s
our portfolio alongside local speciality beers.
brand management. The ‘Three Friends’ campaign con-
Desperados, a tequila-flavoured speciality beer, main-
cept, which was developed in the Netherlands, has been
tained the rapid growth achieved in  and performed
adopted in several other countries. With its particular
extremely well in France, Germany and Spain in particular.
brand values, Amstel lends itself to tie-ins with popular
Desperados has a strong appeal to young adults and good
sporting events. In Europe, Amstel was again the principal
international development potential.
sponsor of the UEFA Champions League for top European
football clubs and continued to sponsor the African Cup
Sales of Paulaner Hefe Weisse, a traditional white beer
produced by BrauHolding International, our joint venture
2002
2001
57,913
55,388
4.6
8,380
7,810
7.3
10,558
9,899
6.7
7,997
7,837
2.0
Group volume 1
84,848
80,934
4.8
Affiliated companies
24,101
24,131
– 0.1
Total beer volume 2
108,949
Change (%)
Geographical distribution of Group volume
in 1,000 hl of beer
Europe
Western Hemisphere
Africa/Middle East
Asia/Pacific
1
Group volume = beer volume sold by consolidated companies
and Heineken beers brewed under licence by third parties.
2
Total beer volume = Group volume plus beer volume produced
by affiliated breweries Kaiser and Quilmes.
14
105,065
3.7
2002 in Retrospect
in Germany, developed well. We see Paulaner Hefe Weisse,
after filling. The FBI system, which has been developed by
which has substantial market positions in Germany, Italy,
Heineken in conjunction with other companies, is currently
Spain, France and the United States, as one of the main-
undergoing extended testing at one of our breweries.
stays of our portfolio of speciality beers.
In the UK and Ireland, stout continued to lose ground to
H eal t h , Safet y an d Env ironm en t
lager. Sales of Murphy’s Irish Stout were down, mainly due
Our operating companies achieved good results with
to lower sales in the UK, but Murphy’s Irish Red achieved
their water-saving projects. In the years ahead we shall
significant growth in Spain.
intensify our efforts in the area of energy-saving.
Affligem, our Belgian abbey beer which has gained a
Our health and safety programme in Africa was extended.
reputation as a high-quality beer for the connoisseur,
sold well in France and Spain and we expect it to find good
Having previously published a two-yearly environmental
niche-market positions in other countries. Sales of Wieckse
report, Heineken published its first biennial safety, health
Witte, a light, fresh-tasting white beer, were lower due to
and environment report last year, covering the period
the poor summer in Western Europe. Kriska, a vodka-
–. This latest report was extended to include
flavoured beer, was launched in France and sales have
information on the environmental performance of our
exceeded our expectations.
businesses outside Europe and our safety performance in
Europe. In recognition of our approach to reporting on
Research and Development
our social responsibility and sustainability policies and our
Research and development are the basis of innovation
performance in those areas, Heineken was included in the
and therefore have strategic importance for Heineken.
Dow Jones Sustainability STOXX Indices and the Store-
Much of the R&D activity is carried out locally, but coor-
brand Index. Companies which perform well both finan-
dination is centralised. The R&D programme covers the
cially and in terms of their social responsibility are admit-
entire supply chain, from the evaluation of new and
ted to these indices.
improved strains of barley and hops to the development
of new products and packaging. On many projects,
Health and safety
Heineken works closely with other companies, suppliers,
Heineken makes every effort to prevent circumstances
research institutes and universities around the world.
arising at its breweries which might jeopardise the health
and safety of its employees and third parties such as sup-
The most significant innovation last year was the David
pliers and people living close to its plants. Where local
dispensing system for retail outlets with a relatively low
legal statutory requirements and rules do not exist or are
beer turnover. The David system, which uses a -litre keg,
deficient, Heineken sees it as its responsibility to develop
offers good returns at lower sales volumes than the sys-
and apply its own standards. Information and awareness
tems based on a -litre keg. The patented David dispens-
are essential to prevent employees being exposed to
ing system is user-friendly, there is no wastage and no
unsafe and unhealthy conditions.
pipework to be cleaned and, once connected, the keg
On the basis of a risk analysis performed on the findings
contents remain fresh up to seven times longer than with
of a comprehensive health and safety study carried out
the traditional dispensing systems. The number of David
at our Bralima brewery in the Democratic Republic of the
systems installed since the launch has exceeded our
Congo, guidelines have been drawn up for personnel
expectations.
instruction and training which will be introduced at all our
A new -ounce (-cl) can was developed for the US
breweries in Africa. One element of our medical policy in
market, to supplement our successful -ounce keg-
Africa is care for employees who are HIV-positive or have
shaped can which had been introduced previously.
contracted Aids. Last year, we invested mainly in improv-
Warka in Poland became the first brewery to install a
membrane filtration system. This technology, which is
employed at the final filtration stage, replaces kieselguhr
and is therefore more environment-friendly.
Trials started with a new bottle inspection system known
as FBI (Filled Bottle Inspector) in , which enables us to
detect glass fragments and other foreign objects in bottles
15
ing the medical/social infrastructure in the Democratic
Republic of the Congo and the Republic of the Congo.
The exchange of expertise between our European locations resulted in more consistent standards for our installations and more extensive and better coordinated safety
training provision.
2002 in Retrospect
Environment
A joint approach by the industry, government and health
As well as being beer’s principal constituent, water plays
organisations to combating alcohol-related problems is
an important part in many stages of the production pro-
one of the objects of the dialogue project initiated by the
cess. Heineken’s policy of economising on water consump-
Amsterdam Group of international companies, with which
tion has now been introduced in all operating companies
Heineken cooperates in promoting responsible alcohol
in which we have a majority interest. The impact of our
use and preventing its abuse. However, cooperation with
‘Aware of Water’ programme, which was launched in ,
governments in this area cannot be truly effective until the
was clearly apparent. A new system installed under our
dialogue project is sufficiently advanced and a common
waste-water treatment expansion programme was com-
position on the issue has been agreed.
missioned at Ibadan in Nigeria in . Work on a new
The first phase of a ‘virtual forum’ project in the
waste-water treatment plant at Enugu in Nigeria is in
Netherlands, which enables young people to learn about
progress and the contracts for construction of the plants
the use of alcohol and other substances via an interactive
at Kinshasa in the Democratic Republic of the Congo and
game, has been completed. This sociopsychological
Hatay in Vietnam have been awarded.
approach is designed to find effective ways to help young
New waste-reduction and energy-saving programmes
people avoid behaviour which incurs health risks.
are being developed and will be implemented in the next
few years. The target for our ‘Aware of Energy’ programme
Personnel
is to reduce energy consumption by % from the begin-
The average number of people employed by Heineken
ning of  to the end of . Achieving that target will
increased by 8,212 to 48,237, due to the acquisition
require both promotion of energy-saving practices and
of several breweries and beverage wholesalers. Excluding
adoption of new technologies, such as heat recovery and
acquisitions, the number of employees decreased,
biogas.
as a result of the action taken to boost efficiency.
Alcohol and Society
Central personnel policy is involved with the recruitment,
Most people use alcohol sensibly, as one of the pleasures
development and retention of managers for senior inter-
of life, but a small minority abuse it, and that can lead
national positions. The operating companies have their
to problems. Heineken initiates and supports – in some
own policies for other staff which take account of the local
cases with the European trade organisation – information
labour market, regulations and practices.
and education projects to prevent alcohol abuse and
As an international group, Heineken needs managers
has formulated internal rules to ensure that its marketing
with an international outlook and a recognisable manage-
messages do not encourage it.
ment style. Heineken fosters the creation of a shared culture and encourages the international exchange of expert-
Heineken regards acknowledgement of the distinction
ise by organising international postings for management
between responsible use and abuse of alcohol as the basis
trainees and placing staff, including senior management,
for effective action by and cooperation between the indus-
on temporary secondment. In  there were  expa-
try, government and other organisations to prevent and
triates working within the organisation, of whom  were
curb alcohol abuse. Governments still resort too often to
relatively young. These expatriates came from  coun-
blanket measures to address alcohol-related problems,
tries and were employed in  host countries.
for example by restricting advertising or distribution or
The findings of the Europe-wide study of recruitment
influencing prices through excise duty. The use of alcohol
and retention of highly qualified staff, which was complet-
only presents a danger to safety and/or health if it is used
ed in , will be used by Heineken as a starting-point
at an inappropriate time, for example before driving a
for encouraging the individual employee to take a more
vehicle or operating machinery, or in excessive quantity.
active role in the development of his or her career.
In a growing number of countries, we are going further
A new cooperation agreement between the European
than imposing internal rules to prevent our commercial
works council and Heineken N.V. came into effect on
communications encouraging alcohol abuse. In the United
 January  which clarifies the decision-making process
States, the Netherlands, Ireland and Italy, our advertising
in relation to important local acquisitions and requires
now carries a warning against abuse and we are planning
that the European works council be informed in good time.
to introduce similar messages in other countries.
16
2002 in Retrospect
Geographical distribution of personnel
in numbers
Asia/Pacific
4,849
Africa/Middle East
11,093
Netherlands
5,527
Western Hemisphere
1,451
Rest of Europe
25,317
Training
organisation. Over , employees took part in the activi-
Productive application of knowledge is essential if
ties organised by the Heineken University in , some of
Heineken is to strengthen its competitive position. So that
which were held at the Learning Centre in Amsterdam and
it can respond swiftly and effectively to change, whether
some in the different regions and countries. A virtual learn-
triggered by growing competition, globalisation, advances
ing centre was added last year, so that e-learning modules
in information technology or social trends, Heineken as an
can be incorporated as a permanent element in all courses.
organisation must be committed to continuous learning.
The Heineken University carried out a survey last year of
To supplement our regular local and international training
the changing demands made on management and leader-
courses, the Heineken University provides a range of short
ship, learning processes in different cultures and the effec-
and intensive training programmes to promote the sharing,
tiveness of teams. The survey findings have been applied
creation and mobilisation of expertise within the Heineken
in new programmes and teaching materials.
17
18
0.5
1
1.1
1.0
0.8
73
75
4
3
78
82
89
7.5
8.4
120
123
152
10.0
150
60
64
5
59
6.3
6
53
5.7
10
30
43
4.5
7
42
3.7
165
35
2.8
11
31
29
2
2.2
2.9
8
ac Ita
ed ly
o
Fr nia
an
Gr ce
ee
Ru ce
s
Sw Bul sia
g
itz ar
er ia
l
Po and
Hu lan
ng d
Ne S ary
th pa
er in
l
Sl and
ov s
Ge ak
rm ia
Ire any
la
nd
0
0.5
9
M
ou
n
Hu trie
M ng s
ac a
Sw ed ry
itz on
e ia
Bu rlan
lg d
a
Ire ria
Sl lan
ov d
ak
Ru ia
s
Gr sia
Ge ee
rm ce
an
Ne
y
th It
er aly
la
n
Fr ds
an
Po ce
la
n
Sp d
ai
n
rc
he
Ot
Regional Review
135
105
90
45
15
0
Group volume
Beer consumption
Europe 2002
Europe 2001
by country, in millions of hectolitres
per capita, in litres
Regional Review
Europe
Sales in Europe increased from . million hl to .
60
57.9
million hl (+.%). Most of the sales growth reflects
55.4
55
the first-time consolidation of the newly acquired
breweries in Russia and Germany. The fastest organic
growth in sales volume was recorded by the breweries
in Poland, Slovakia and Bulgaria. Sales in a number of
50.7
50
45.4
45
Southern and Western European markets were under
pressure.
In most countries in Europe there is a growing preference
for premium beers at the expense of mainstream beers.
This trend, which has been in evidence for some years,
is beneficial to our profitability. Rising sales of speciality
40
38.2
beers in many countries also helped to improve the sales
35
mix.
Beer consumption was depressed by the wet weather
in Southern and Western Europe and reduced tourist
numbers in Greece and Spain, combined with the effect
on customer volume of the above-average price rises in
30
the on-trade sector, in which the introduction of the euro
and increased costs were contributory factors.
Heineken welcomes the accession of ten new countries
25
to the European Union, a development which Heineken
has anticipated fully with the investment strategy it has
pursued in recent years. Purchasing power in these
20
countries is set to increase significantly in the long term,
which will foster greater brand awareness and promote
growth in the premium segment.
15
The wave of mergers and acquisitions continued in the
brewing industry in Europe, including Germany and Russia.
Bravo International, our Russian brewery, and BrauHolding
10
International in Germany were included in Heineken’s consolidated accounts for the first time. Heineken strengthened its position in Germany with the acquisition of a
5
minority stake in Karlsberg International Brand, the market leader in the important Saarland and Rheinland-Pfalz
0
regions. In early , Heineken reached an agreement in
19
9
19 8
9
20 9
0
20 0
0
20 1
02
principal on the acquisition of a .% interest in Karlovacka Pivovara, the second largest brewery in Croatia with
a market share of %.
Group volume
Europe
19
It’s not big, but it’s very clever:
beer fresh for a minimum of
that’s our new David dispensing  days and is very easy to use.
system, based on a -litre keg. Demand exceeded all expecFor low-volume outlets, selling
tations in most of the countries
between  and  glasses
where David was introduced
of beer a day, David is a cost-
in , and the system will
effective solution. Where only
be launched in many more
bottled and canned beer was
markets in . This innova-
an economic proposition, beer
tive, patented draught beer
on draught is now an option.
dispensing system was devel-
The David system keeps the
oped in-house by Heineken.
> David Fresh draught beer at low-volume outlets
Regional Review
Europe
Netherlands
Level result in a slightly softer market
The plan to close our De Ridder brewery was announced
at the end of .
Vrumona, our soft-drinks company in the Netherlands,
Demographic factors caused the Dutch beer market to
operated in a declining market. Although its market
contract slightly. Beer prices rose in response to an 18%
share contracted a little, Vrumona’s result was higher,
increase in excise duty and higher costs. Heineken
thanks to improvements in the sales mix and cost-savings.
Brouwerijen’s sales declined from 6.5 to 6.3 million hl,
Dairy-based drinks are gaining in popularity at the expen-
but our market share held firm. Despite the lower sales,
se of traditional soft drinks, such as cola, orange and
an improved sales mix helped to keep the result level.
lemon/lime. Demand in general is shifting from carbon-
The Heineken companies in the Netherlands have started
ated to still drinks, and Vrumona responded to this trend
operating a number of shared support services, with the
by launching several new products, including SiSi No
aim of improving quality and reducing costs.
Bubbles Orange/Mango, Pepsi Twist and -Up Tropical
Splash. Vrumona has embarked on a new cost-reduction
There is a clear shift in the beer market from the on-trade
programme.
to the take-home sales channel, helped by longer supermarket opening hours and the growing availability of chilled beer in supermarkets. This is impacting on on-trade
sales of draught beer, and competition between breweries
France
Improved result in a softer market
for outlets in the on-trade sales channel is intensifying.
The slow downward trend in the French beer market was
With .% of the market, lager is the dominant beer. Sales
compounded in 2002 by the effect on consumption of the
of competing ready-to-drink mixes declined in the second
poor weather. Competition intensified. Sogebra’s sales
half of , which indicates that these drinks have passed
were down from 7.8 million hl to 7.5 million hl, in line with
their peak.
the market, but the result improved, reflecting a better
Sales of Heineken beer held steady. The brand was supported by the popular ‘Biertje’ campaign, new forms of
sales mix which was largely due to the success of Desperados, higher selling prices and lower costs.
packaging and sponsorship activities. Events sponsored
by Heineken included the Fast Forward Dance Parade,
As the premium and speciality beer segments continued
Dance Valley and a one-off concert by rock legends Queen
to grow, the Heineken brand achieved higher sales and
to mark the Queen Beatrix’s Birthday. The new twelve-
increased its market share, despite the slower beer mar-
pack of one-way green -cl bottles was rated by retailers
ket in the on-trade sector in particular. The introduction on
as the best newcomer to their shelves in . Heineken
a limited scale of Heineken in innovative aluminium bottles
Brouwerijen also introduced a -bottle crate for the
was a great success and roll-out will continue in .
on-trade sales channel. The David dispensing system,
The Heineken brand was supported by new print-media
which uses small -litre kegs, was launched in early 
and billboard advertising. As well as taking the lead as the
and was enthusiastically received by the on-trade.
best-selling speciality beer in France, Desperados also
Around  systems are now in use in the Netherlands.
reported greatly increased exports. Sales of Amstel,
Sales of Amstel were down, reflecting its relatively
which is only sold in the on-trade sales channel, declined
strong position in the depressed on-trade sales channel.
in line with the rest of the mainstream beer segment.
Amstel Bright, which is imported from Curaçao, and
“” Export, which is also positioned in the mainstream
Desperados posted strong growth. Amstel’s ‘Three Friends’
segment, suffered the effects of competitors’ price-
concept continued to enjoy high consumer ratings.
cutting promotions and sales were lower. New product
The rapid growth in export sales has made it necessary
launches included “” Export Demi-Rondelle, a lemon-
to expand our production facilities, mainly for the produc-
flavoured beer, and Panach’ Peche, a peach-flavoured
tion of Heineken and Amstel Light, in Zoeterwoude and
shandy. The launch of Kriska, a vodka-flavoured beer,
Den Bosch. Work has started on this extension project,
exceeded expectations. Sales of Affligem, an abbey beer
which will take our total capacity in the Netherlands to
produced by our Belgian brewery, were higher in both the
over  million hl per year. To reduce costs, production at
on-trade and take-home sectors.
De Ridder brewery in Maastricht has been transferred to
Den Bosch.
21
Regional Review
Europe
Spain
Improvement in second half of 
Sales of imported Heineken beer on the Canary Islands
increased slightly, despite a substantial rise in import
duties.
Although the Spanisch beer market grew a little last year,
on-trade sales were down. Heineken España reported
sales of 10.4 million hl in 2002, compared with 10.0 million
hl in 2001. The result was also down, but market share
improved in the second half of the year.
Italy
Stronger result in a weaker beer market
Beer consumption in Italy declined a little compared with
2001, with weaker sales in the on-trade sector in particu-
There was some growth in the Spanish beer market des-
lar. Heineken Italia’s beer sales remained flat at 5.7 million
pite poor weather, reduced tourist numbers and higher
hl, and its market share increased slightly. The result
consumer prices related to the introduction of the euro.
improved, due mainly to a better sales mix and greater
There was also an increase in excise duty with effect from
internal efficiency.
 January , which led to stockpiling at the end of .
Heineken España lost some market share, due to its
Heineken, Birra Moretti and Ichnusa, Heineken Italia’s
relatively strong position in the on-trade sales channel,
principal brands, achieved substantial growth, but sales of
where a reduction in demand was concentrated, and the
Dreher and a number of low-priced beers fell short of the
enforced sale of two breweries and a number of regional
previous year’s level. Speciality beers also sold in greater
brands in the course of .
volume. Ichnusa, which is available only in Sardinia,
Sales of the Heineken brand were higher and Cruz-
confirmed its position as the leading brand on the island.
campo volume held firm, while sales of the Amstel Aguila
The launch of the new David dispenser was a great success
mainstream brand and low-priced beers declined.
and over , systems have now been installed in Italy.
Heineken España runs an extensive support programme
The Heineken brand received additional support
for on-trade establishments, offering total concepts for
through Heineken Italia’s sponsorship of a number of
positioning and design of themed outlets. By the end
music events, the most prominent being the Heineken
of , the number of themed outlets had risen to .
Jammin’ Festival and the Umbria Jazz Festival. Moretti
Positive publicity for Heineken España’s brands was gener-
continued its successful sponsorship of the Trofeo Birra
ated through sponsorship of various events.
Moretti tournament, which is contested by the top Italian
Cruzcampo Future, a one-litre PET bottle, was launched
last year. Cruzcampo Big, a wide-necked bottle, and
soccer teams.
The usage of and facilities provided by the Hiweb inter-
Amstel , which had both been test-marketed in ,
net application, through which on-trade customers,
were introduced nationally. Spanish consumers are
dispensing equipment servicing contractors and Heineken
increasingly acquiring a taste for speciality beers, and
Italia’s sales organisation can communicate directly,
Desperados in particular reported growing sales. Two new
continued to grow.
speciality beers were launched: Legado de Yuste, a charac-
Partesa, Heineken Italia’s distribution organisation, per-
teristically Spanish abbey beer, and Cruzcampo Selección
formed well and its margins improved. Partesa acquired
Especial. Higher sales were also reported for Guinness
a number of additional beverage wholesalers to augment
stout, which is brewed under licence, and our own
its distribution network.
Murphy’s Irish Red and Buckler alcohol-free beer.
Following the enforced sale of two breweries in ,
Following the decision to increase capacity at the
Massafra brewery, work on the expansion project is in
Heineken España embarked on a cost-cutting programme,
progress and is scheduled for completion in .
which will mean reducing the workforce by around 
The process of replacing the Heineken, Birra Moretti
by .
and Ichnusa bottles and crates is practically complete.
To strengthen its logistics function, Heineken España
has a separate distribution organisation which, in addition
to the distribution of our beer brands via allied distributors, also supplies wines, spirits and soft drinks.
22
Regional Review
Europe
Greece
Improved result in a gradually rising market
of Germany, Italy and Spain. Paulaner Weissbier is now
available in elegant long-necked bottles. Auerbräu developed well, but sales of Thurn & Taxis and Kulmbacher were
The beer market picked up a little, despite wet weather
down. Mönchshof volume was higher, as were sales of
and a reduction in tourist numbers. Athenian Brewery’s
Sternquell and BrauStolz, the former East German brands.
sales increased slightly to 3.7 million hl and its result
Sales of soft drinks also increased.
improved.
BrauHolding International made cost-savings in several
areas, helped by shared raw material purchasing.
Athenian Brewery achieved sustained growth in Heineken
beer sales, helped by the marketing campaigns launched
the previous year based on our sponsorship of the Olympic
Games in Greece in . The campaign used several tele-
Switzerland
Stable sales in a softer beer market
vision commercials as well as newspaper, magazine and
The Swiss beer market continued to contract slightly.
billboard advertising. Involvement in the Olympic Games
The economy weakened and tourism was down.
will be a major boost for the Heineken brand. Amstel sales
Competition, especially from German and French beers,
remained at the previous year’s level. Sales of Alfa, an
intensified. Heineken Switzerland held sales stable at
authentic Greek beer, developed in line with the market.
760,000 hl but returned a slightly lower result.
Our brewery is working to make beer drinking less seasonal by stepping up its advertising effort in the low season.
Sales of our Ioli mineral water were down. Exports of
Heineken Switzerland reported increased sales of
Heineken beer. The local Calanda and Haldengut brands
Amstel, Marathon, Athenian and Alfa beers to the neigh-
defended their market share but volume was lower. In the
bouring countries were higher. Imported Amstel is the
region where Calanda is strongly positioned, tourism was
top-selling beer in Albania.
also down.
Germany
new David dispensers in the on-trade sector. The new
Heineken Switzerland installed a large number of the
Sales and results in line with forecast
brew-house at the Chur brewery came on stream.
Concentrating production at Chur has reduced costs.
BrauHolding International, our joint venture with Schörghuber Corporate Group, started trading on 1 January
2002. The German beer market continued to contract
last year, with the relatively weak economic situation
Ireland
Higher sales and an improved result
adversely affecting sales especially in the on-trade sector.
The Irish beer market weakened slightly, but lager contin-
BrauHolding International’s sales were higher and the
ued to grow at the expense of stouts and ales, boosting
first year’s result was in line with expectations. Exports
Heineken Ireland’s sales from 1.1 million hl to 1.2 million hl
of Heineken beer to Germany continued to grow.
and increasing its market share. Higher beer sales and
higher selling prices combined to produce an improved
At the beginning of , the joint venture owned % of
result.
the Kulmbacher brewery and % of Paulaner Group. In
June last year, the purchase was announced of % of the
Sales increased in both the on-trade and take-home
shares in Karlsberg International Brand GmbH, which sells
channels. Heineken Ireland was able to keep sales of the
. million hl of beer and , hl of other drinks.
Heineken brand on target, supported by sponsorship of
Karlsberg, whose principal brand is Karlsberg Urpils, has a
the Heineken European Rugby Cup and the Thirst and
strong position in the Saarland and Rheinland-Pfalz regions.
Green Energy music festivals. Sales of Murphy’s Irish Stout
The transaction has been approved by the authorities con-
were down, in line with the contracting stout market. The
cerned. The participating interest in Karlsberg has been
Irish Open golf tournament was sponsored by Murphy’s
part of BrauHolding International since  January .
Irish Stout for the last time in . Sales of Coors Light
Paulaner reported strong growth in sales of its speciality
Weissbier, in both its home market of Bavaria and the rest
23
brewed under licence recorded substantial growth.
This American brand is now also available on draught.
Beer may not be part of Spain’s
some , only eight years
traditional ceramics, looks
national heritage, but a taste
after the concept’s launch.
back to the Spanish Mediter-
for beer can be acquired
On-trade operators have a
ranean past, and Beer Station,
anywhere and having the right
choice of four themes.
a recent addition to the range,
environment helps. Perhaps
The Irish Pub and Gambrinus
recreates the cosmopolitan
that explains the success of
evoke the beer culture of
atmosphere of a railway station
Heineken España’s themed
around , Cruz Blanco,
from the first half of the twen-
bars, of which there are already which makes lavish use of
tieth century.
> Themed bars Creating a beer culture
Europe
Poland
Sharply higher sales and result
Having remained static in 2001 due to large rises in excise
duty, the Polish beer market grew by around 8% last year.
vigorously. Sales of Warka Strong passed the million-hectolitre mark, helped by wider availability and increased
marketing effort. Sales of the regional Specjal brand were
also up.
In tailoring our marketing and advertising activities to
Neighbourhood shops continued to play a leading role
.
in beer retailing. Grupa Z ywiec reported sharply higher
the severe restrictions which came into force at the end of
sales, which rose from 7.6 million hl to 8.4 million hl, and
elsewhere within Heineken in similar circumstances.
.
Grupa Z ywiec acquired further beverage wholesalers, in
growth in market share. Its result improved significantly.
, full advantage was taken of the experience gained
order to extend the national coverage of its distribution
The restructuring project which was started several
years ago, combined with the revised marketing strategy,
network. By expanding, integrating and upgrading the dis.
tribution function, Grupa Z ywiec is able to offer a support-
brought clear benefits in . Sales were up by over
.
, hl, raising Grupa Z ywiec’s market share to %.
ing range of soft drinks and other beverages in addition to
The greatly improved result was achieved against the back-
cost-effectively.
ground of a weak economy and growing competition from
.
low-priced beers. Grupa Z ywiec is concentrating its marketing effort on a selected portfolio of strong brands which
New fermentation tanks for Heineken beer were instal.
led at the Z ywiec brewery, the installation of a filling line
.
in Elblag was completed and the brew-house at the Lezajsk
offer good potential. Increased efficiency in both the sales
brewery was upgraded. The rapid growth in sales has
and distribution functions and the breweries was a contrib.
utory factor in Grupa Z ywiec’s improved performance.
.
Sales of both the Heineken brand and Z ywiec, our Polish
made expansion and modernisation of the breweries a
premium brand, were higher. Heineken is now the leading
breweries. The decision was taken in late  to close
international premium beer in Poland. Warka Full Light
down the Braniewo brewery in .
and Tatra, the national mainstream brands, also grew
24
beer, which helps to grow our beer sales faster and more
priority, and a start was made at the end  on extend.
.
ing the capacity of our Warka, Elblag, Z ywiec and Lezajsk
Europe
Russia
Increased sales and market share
Both Russian premium beers and international premium
beers brewed under licence continued to grow.
This prompted the launch of many new products in this
Although the rate of growth slowed, the Russian beer
segment, which translated into heightened competition.
market still grew at around 8%, with Russian mainstream
A % increase in the excise duty on beer came into force
and premium beers and international beers accounting
on  January .
for most of the increase. Bravo International’s sales rose
Sales of Botchkarev, our Russian premium beer, were
from 2.3 million hl to 2.8 million hl, and increased its mar-
down a little, but sales of our mainstream Ochota beer
ket share. In its first year of inclusion in the consolidation,
rose sharply, as did sales of Löwenbräu brewed under
Bravo made a positive contribution to the result.
licence. The Botchkarev bottle was modernised to emphasise its positioning as a premium brand. By the end of the
Heineken acquired the Bravo International brewery in
year, with the support of national TV and billboard adver-
St. Petersburg in early . The Russian beer market is
tising, sales of Botchkarev were rising again.
growing rapidly and is already the fifth largest beer market
Investments were made in production facilities in 
in the world in terms of volume and is still relatively frag-
to enable Heineken beer to be brewed in Russia. Heineken
mented, despite the presence of a substantial number of
beer is at present still being imported from the Nether-
international brewers. The acquisition of Bravo has placed
lands and the high import duties are restricting its growth.
Heineken in a good position in Russia. Because the brew-
Locally brewed Heineken beer will be introduced in the
ery failed to meet the ambitious  volume targets
first half of .
agreed with the vendors at the time of the acquisition,
Heineken paid only USD  million for the brewery, USD
 million less than if the targets had been achieved.
Sales of beer in cans and .-litre and -litre PET bottles
Hungary
Stable result in a competitive environment
were significantly higher and alcohol-free beer sales also
Although the Hungarian beer market grew, margins were
increased. Selling prices rose more slowly than inflation.
under pressure from intense competition between major
25
Regional Review
Europe
players in the market. Amstel Brewery Hungary’s sales
Zagorka, the mainstream brand in the range, performed
were down from 516,000 hl to 486,000 hl, but the result
well and the Amstel and Ariana brands held their position.
held steady thanks to improvements in the sales mix
Ariana is the leading brand in the large low-priced beer
and cost savings.
segment, which still accounts for over % of the market.
Imported Heineken will be added to Zagorka’s brand
Sales of Heineken beer were especially good, with the new
portfolio in . Costs were lower in , thanks to the
-cl can sold through supermarkets proving particularly
brewery modernisation projects implemented in the past
successful. Sales of the Amstel and Talleros brands were
few years.
down. Rationalisation of the number of Amstel packaging
variants to cut costs entailed some loss of sales, but
produced an improved result. Marketing plans to increase
Amstel sales are under development. Amstel Brewery
Macedonia
Pivara Skopje posts improved result
Hungary installed almost  David dispensers at
Beer consumption in Macedonia rose last year. Pivara
customers’ premises.
Skopje increased its sales to 0.5 million hl and posted
an improved result.
Slovakia
Growth in market share and result
Sales of Skopsko, the leading beer brand in Macedonia,
were higher, as were sales of imported Heineken and
The Slovakian beer market grew by around 5%, mainly
Amstel beer. Pivara Skopje started distributing Heineken
in the alcohol-free and lighter beer segments. Low-priced
beer in May , which has brought benefits in terms
beers still account for the bulk of this market. Heineken
of the quality and cost of marketing and distribution. Sales
Slovensko reported growth in sales from 2.1 million hl to
of soft drinks declined, in the face of competition from low-
2.2 million hl, which translated into an increased market
priced imports. Work on increasing capacity at the brew-
share, and an improved result.
ery is progressing steadily and will be completed in .
Zlatý Bažant, our local premium beer in Slovakia, continu-
Other European countries
ed to consolidate its position. Sales were up and Zlatý
Bažant is now the leading beer brand in Slovakia. The on-
The beer market in the United Kingdom contracted.
trade contributed most of the growth in Corgon sales. Our
Sales of Heineken Cold Filtered and Heineken Export were
Gemer brand performed particularly well in the low-priced
lower, in advance of a change in marketing strategy, and
beer segment, with sales up by almost %, but sales of
Amstel sales were down a little. At  million hl per year,
our regional Martiner brand were down.
the UK is the second largest beer market in Europe. With
Heineken Slovensko acquired a number of beverage
lagers in general and premium brands in particular grow-
wholesalers and made good progress in building its nation-
ing rapidly at the expense of traditional ales and stouts, it
al distribution network.
has been decided to launch Heineken beer imported from
Capacity at the Hurbanovo malt-house was expanded
the Netherlands in the premium segment in early ,
from , tonnes to , tonnes. With a total capaci-
via our own marketing and sales organisation. Heineken
ty of , tonnes, Heineken Slovensko is one of the
Cold Filtered beer, a reduced-alcohol variant, will be with-
largest malt producers in Europe.
drawn during . We plan to support the launch with
intensive marketing campaigns and expect the Heineken
Bulgaria
Zagorka brewery attains market leadership
brand to have secured a strong position in the premium
segment within five years. A new licensing agreement was
signed for the production and sale of Murphy’s Irish Stout
Despite the Bulgarian beer market contracting by over 6%
and Murphy’s Irish Red. Sales of these beers were down
in response to higher excise duties, our Zagorka brewery
and a plan has been devised to restore the market share to
increased its sales by 2% to 1.0 million hl, making it the
its previous level.
market leader, and posted a stable result.
The Affligem brewery in Belgium reported sharply
increased sales. Around % of Affligem abbey beer is
26
Regional Review
Europe
exported – mainly to France, and it has now been launched
canned beer in Denmark . An agreement was signed with
in a number of other European countries. Heineken has
Bryggerigruppen for the distribution of Heineken beer,
acquired the remaining % of the shares in Affligem and is
which will be delivered in tanks from the Netherlands and
now the sole shareholder. The capacity at the brewery has
canned locally in Denmark.
been increased to meet the rising demand.
Mouterij Albert, our malt-house plant in Belgium which
Sales of Heineken beer in Sweden, where it is brewed
under licence by the Spendrups brewery, continued to
supplies breweries in Europe, Africa, Brazil and elsewhere,
grow. Most of the growth was in bottled Heineken, which
operated at full capacity and produced , tonnes
is important in promoting the brand’s premium image.
of malt.
With the abolition of a number of market-protection
measures, it became possible for the first time to market
27
An agreement was signed with Hansa Borg Bryggerier
in Nor way to brew and sell Heineken beer under licence.
Regional Review
Western Hemisphere
Heineken’s sales in the Western Hemisphere increased
9
8.4
from . million hl to . million hl, with the United
7.4
7.8
8
7
States and Central America accounting for most of the
growth.
Heineken has built a strong position in the Western
Hemisphere, with growing exports to the United States,
6
6.1
6.6
Canada and Central and South America. Heineken also
owns a number of breweries in the Caribbean and has
licensing agreements with several brewers in Central and
South America. The long-term demographic and economic trends indicate good potential for turnover and profit
growth in the Central American region. Although the diffi-
5
cult economic situation in a number of South American
countries is reflected in a downward trend in beer
consumption, the beer market in this region also offers
4
good long-term growth prospects for our brands, and
Heineken is therefore seeking to expand its operations in
both Central and South America. Heineken acquired inter-
3
ests in breweries in Costa Rica, Panama and Nicaragua in
 and Chile in .
2
United States
Heineken and Amstel Light gain market share
1
While total US beer consumption remained virtually
flat, the import segment recorded substantial growth
and now accounts for over 11% of the total market.
0
19
9
19 8
9
20 9
0
20 0
0
20 1
02
Sales of our imported beers rose from 5.5 million hl to
6.2 million hl, improving Heineken USA’s market share.
Our prices were raised in the course of the year.
Group volume
Western Hemisphere
The US beer market grew by around .%, but half of that
growth was in malt-based ready-to-drink mixes (malternatives). Demand for malternatives has peaked and the light
beer segment now accounts for % of the total beer
market. Consumer preference is turning increasingly to
imported beers and premium light beers, which has
benefited Heineken and Amstel Light, our leading brands.
We again increased our investment in marketing.
The greater emphasis on regional and cultural diversity in
our Heineken campaigns is beginning to have an effect
and is bearing fruits among African Americans and
Hispanic Americans. Heineken’s principal sponsorship
activities were again the US Open tennis tournament and
the Mardi Gras festival.
A special Mardi Gras can was introduced to support our
involvement with this popular festival. A new large
28
The FBI (Filled Bottle Inspector)
. seconds. These are
can detect even the tiniest
analysed and compared by a
particles of glass and other
computer, which gives the
foreign objects. ‘It’s really a
alarm if it detects any particles’.
very simple principle,’ explains
Trials with the FBI system have
Berco Landman of Heineken
been successful and further
Technical Services, one of the
mechanical improvements will
co-inventors of this revolution-
be made in . In view of its
ary bottle inspection system.
importance for product safety,
‘The bottle is spun at high
Heineken plans to give other
speed on a carousel and sud-
bottling plant operators access
denly stopped. A camera then
to this patented system, which
takes  pictures of the
will be built in partnership with
still-rotating contents in
other companies.
> The FBI Sees everything
Regional Review
Western Hemisphere
-ounce (-cl) Heineken can in the shape of a keg,
of the Brazilian beer market and Heineken will therefore
to supplement the existing -ounce keg cans, was enthu-
continue to be the premium beer in the brand portfolio
siastically received by the market and contributed to
carried by the enlarged Kaiser organisation.
the sales growth. The launch was supported by special TV
commercials.
Amstel Light posted double-digit growth for the fourth
Our sales in Argentina and Uruguay were adversely
affected by the economic conditions. Heineken reached
agreement with Quilmes in January  that it would sell
consecutive year. The brand was supported primarily with
its % stake in the latter and that the licensing agree-
an advertising campaign presenting Amstel Light as ‘the
ments for the production and sale of Heineken beer would
beer drinker’s light beer’, which highlighted the excellent
be terminated in due course.
taste of this low-calorie product, and through sponsorship
of golf and other summer activities.
Thanks to the effort invested in recent years in improv-
At the same time, the Company also reached agreement
with its German partner Schörghuber Corporate Group to
purchase the latter’s % interest in IRSA, which has a
ing availability in the major supermarkets, Heineken beer
majority holding in CCU, the largest brewery in Chile with
can now be found on the shelves in the stores operated
an % share of its home market. CCU also owns breweries
by all the leading groups. The focus now is on growing the
in Argentina. Chile is one of the most attractive beer
sales per outlet. The Star Chain supply-chain management
markets in South America. The licensing agreements for
project, in which Heineken USA’s new beer depots played
the brewing and distribution of Heineken beer in Chile and
an important role, was completed. Lead times have been
Argentina will be transferred to CCU. For Heineken, this
significantly shortened and our beer now reaches the con-
new alliance offers good prospects of further growth
sumer much faster than before.
in Chile, Argentina and other South American countries.
Sales of imported Heineken beer in Boliv ia and
Canada
Rapid growth of the Heineken brand
Although the total Canadian beer market remained static
in terms of volume, the imported beer segment continued
to gain ground.
Colombia were higher. Amstel Light was introduced in
Colombia.
Central America
The beer market in Central America was under some
pressure from slow economic growth and declining pur-
The Heineken brand in particular performed well. The sale
chasing power. Our sales in this region increased from
and distribution of imported Heineken and Amstel Light is
725,000 hl to 790,000 hl. Heineken strengthened its mar-
handled by Molson Canada Inc.
ket position in Central America significantly in 2002.
South America
The Central American countries have good long-term
South American beer consumption declined slightly,
high proportion of young people and their beer markets
reflecting the worsening economic situation in Argentina,
are growing. As most of the countries in the region have
Uruguay and Paraguay. Our sales, mainly of Heineken
only one or two breweries, there are opportunities for
beer, totalled 400,000 hl.
generating above-average profits. Despite the still limited
economic growth prospects, their populations include a
availability, the Heineken brand is regarded as the most
In Brazil, Heineken converted its former % interest in
prestigious international brand in the region. If the posi-
Kaiser into a % interest in Cervejarias Kaiser Brasil,
tive economic trend is sustained, the Heineken brand has
a company created by Molson Inc. which purchased Kaiser
good medium-term growth potential in this region.
and combined it with the previously acquired Bavaria brew-
In September, Heineken reached agreement with FIFCO
ing group, in which Molson Inc. in Canada holds the remain-
in Cost a Ri ca on the acquisition of a % interest in
ing shares, is the second largest brewery in Brazil with a
Florida Bebidas, the country’s only brewery, which has a
market share of about %. The agreement with Molson
% market share. Its brands are Imperial, Pilsen, Rock Ice
incorporates a multi-year licensing contract for brewing
and Bavaria. The company also owns a modern fruit drinks
and marketing Heineken beer in the premium segment
plant and is the market leader in bottled water.
30
Regional Review
Western Hemisphere
The agreement also relates to the acquisition of an indi-
industry and tourism were particularly badly affected.
rect % interest in COCECA, the only brewery in Ni cara-
These factors depressed our beer exports from St. Lucia
gua . This brewery also has a % market share, with its
and the brewery’s result.
Victoria and Tona brands.
In Panama , Heineken and FIFCO acquired Cervecerias
Barú-Panama, one of the two Panamanian breweries.
Heineken has a .% interest in Barú, which has a %
market share with its Soberana, Panama and other brands.
Surinaamse Brouwerij in Surinam, trading in a highinflation economy, reported reduced sales and a lower
result.
On Curaçao , Antilliaanse Brouwerij’s sales and result
were held back by increasing competition. Sales of
Heineken beer were higher and exports of Amstel Bright
Caribbean
from Curaçao to the Netherlands recorded steady growth.
With visitor numbers in the Caribbean still showing no
reduced inflow of tourists and depressed banana prices
clear sign of recovery following the tragic events of
on the world market. In a contracting beer market,
September 2001, both the purchasing power of the local
Brasserie Lorraine’s sales were down but its result held
population and the beer market were under pressure.
firm. Sales of imported Heineken beer increased.
Sales of Heineken beer increased a little and the result
improved slightly.
The economy of Martinique had to cope with a
On Trinidad, the licensing agreement for the production of Heineken beer was terminated at the end of .
The market will henceforth be supplied with imported
In the Bahamas , Commonwealth Brewery’s total sales
and results fell short of the  level, but sales of
Heineken beer were higher.
The development of Windward and Leeward Brewery
on St . Lucia was held back by the weak economy and the
after-effects of Hurricane Lilly, which damaged the local
economy and that of the neighbouring islands. The banana
31
Heineken.
Sales of Heineken beer brewed under licence on
Jamaica failed to rise above the  level, as a result of
natural disasters and unrest surrounding the elections.
Sales of imported Heineken beer on Puerto Rico were
down, reflecting higher import duties.
Regional Review
Africa/Middle East
11
Sales increased in virtually all markets in Africa and
10.6
the Middle East. Heineken’s overall result improved
10
and beer sales in this region rose from . million hl to
9.9
. million hl (+.%). Sales of Heineken beer in Africa
and the Middle East were especially strong, with
growth of over %. Heineken acquired two brewery
8.8
9.2
9
8
companies in the Middle East, which will provide valuable support for our expansion strategy in the region.
7.7
Africa
7
Heineken owns breweries in several African countries
which have substantial shares of their respective national
markets. As well as local brands, these breweries also
sell Amstel beer in some of these countries. Most of the
6
companies also produce and market soft drinks. In several
countries, the Heineken, Amstel and Mützig brands
are brewed under licence and marketed by third parties.
5
Heineken beer is imported on a modest scale.
The Heineken brand performed particularly well in South
Africa and Nigeria.
4
One of Heineken’s main priorities in Africa is staff training and development, which is a critical success factor for
any brewery. Heineken runs training centres in the region
3
and also provides training courses in the Netherlands.
A number of common pan-African sales, distribution, internal organisation, supply-chain management and account-
2
ing systems were introduced at our breweries last year.
The bottling lines at breweries in several African countries were replaced with modern equipment offering
1
not only greater capacity and lower operating costs, but
also improved safety. Construction work is in progress
on waste-water treatment plants at a number of locations.
0
19
9
19 8
99
20
0
20 0
0
20 1
02
Although economic and political stability has been
restored to some extent, Nigeria is still heavily dependent on oil revenues. Inflation remained high and beer consumption increased only marginally, due to the protracted
wet season. Nigerian Breweries also reported higher sales,
Group volume
but was held back for much of the year by a shortage of
Africa/Middle East
production capacity. The result improved despite higher
costs incurred in modernising the breweries and a
substantial general pay rise imposed by the government.
Competition intensified with the entry of a new player in
the Nigerian beer market. Nigerian Breweries’ five existing
production facilities were modernised in  and capacity was extended with the installation of new fermentation
and lagering tanks and additional bottling lines.
Sales of imported Heineken doubled and Amstel Malta
32
IT’S NOT ABOUT BEING COOL.
IT’S ABOUT BEING CONNECTED
Beacon is a global project
?
tant to Heineken to carry on a
through which Heineken is con- dialogue with young adults, as
necting with young adults and
a sounding-board for our cur-
their needs and aspirations.
rent activities and as a source
How are they building their
of inspiration for the new activi-
lives, and what can Heineken
ties we are constantly develop-
add? Their input has a place in
ing. This helps us to build their
the communications and
affinity with our brands and our
events which support our
company and optimise their
brands and helps to shape our
perception of Heineken in each
role as an employer and in the
region, thereby keeping our
wider community. It’s impor-
brands young and relevant.
> B e a c o n Ta l k i n g t o g e t h e r, c r e a t i n g t o g e t h e r
> Heineken Experience Enjoyment
Africa/Middle East
sales developed well. Good progress was made with the
Modest sales growth in a static beer market was reported
construction of a new brewery near Enugu, which will
by Brasseries de Bourbon on Ile de la Réunion . The
begin production in March . Consolidated Breweries,
result was lower, due to non-recurring costs. A new main-
in which Heineken has a minority interest, also reported
stream lager was introduced under the name , the
higher sales.
number with which all car licence plates start on Réunion.
The economic situation in the Democratic Republic
Ghana saw no sign of economic recovery. Competition
of Congo remained unstable. As a result the local curren-
in the beer market was intense, bringing pressure to bear
cy devalued sharply at the end of . Brasseries, Limo-
on selling prices. Ghana Breweries was able to expand its
naderies et Malteries Bralima kept sales up to the previous
beer sales, thereby improving its result.
year’s level, but the result was depressed by higher
Brasserie du Logone in Chad benefited from the great-
packaging expenses and fixed costs. Competition in and
er political stability and the recovery of the oil industry.
around the capital Kinshasa is intense.
Beer sales rose sharply and our brewery made a profit
Despite higher sales, Brasseries et Limonaderies du
for the first time since the end of the civil war in .
Rwanda Bralirwa in Rwanda returned a slightly weaker
The restoration of political stability in Sierra Leone
result, due to a number of factors including new import
was accompanied by explosive growth in beer consump-
duties on raw materials.
tion, and Sierra Leone Brewery, in which Heineken has a
The political situation in Burundi is still uncertain and
the economy remained weak when promised foreign aid
minority interest, was unable to meet demand.
The ceasefire in Angola since April  raised hopes
failed to materialise. High inflation and devaluation of the
of a recovery in the beer market, but sales by the EKA and
local currency meant narrower margins for Brasseries
Nocal breweries, in which Heineken has minority interests,
et Limonaderies du Burundi Brarudi, but this was compen-
were still depressed.
sated to some extent by higher sales.
The elections in Congo passed off relatively smoothly.
Sales of Heineken and Amstel in South Africa , where
both beers are brewed under licence by SABMiller, showed
In a rising beer market, Brasserie du Congo achieved high-
significant growth. Both are positioned in the premium
er sales and a better result.
segment, the only segment which is growing.
34
The Heineken Experience isn’t
ience is one of the city’s top
Heineken’s social role. One of
just what you get when you
attractions, drawing in hund-
the highlights is the Bottle Ride,
drink our beer.
reds of thousands of visitors
which follows a beer bottle’s
It’s what you get when you visit
each year. They are taken
high-speed trip through the
our former brewery in Amster-
through a visual and interactive bottling process, from washing
dam, where we made the beer
programme presenting the
and filling through labelling
that made us famous around
brand, the company’s history,
and capping to packaging in
the world. The Heineken Exper- the brewing process and
export cartons.
Africa/Middle East
Sales of Amstel and Mützig brewed under licence in
Tempo Beer Industries in which we have a minority
Cameroon continued to grow.
interest. Sales of imported Heineken beer were also down.
In Morocco, sales of Heineken and Amstel brewed
under licence were also higher.
Competition intensified in the beer market in Jordan
with the entry of a second brewing group. Sales reported
by Jordan Brewery, in which we have a % stake, fell short
Middle East
of the  level.
Heineken acquired a .% interest in Al Ahram Beverages
after the post-September  downturn. We are market
Company (ABC), the only brewery in Eg y pt . ABC sold
leader in the region with our Heineken and Amstel brands.
, hl of beer and , hl of non-alcoholic malt
drinks in . Its principal brands are Stella and Fayrouz,
a very successful non-alcoholic malt drink available in a
range of fruit flavours. Exports of Fayrouz to neighbouring
countries are growing. The brewery has an excellent
distribution network, which will support the continuing
growth of imported Heineken beer in the future.
Sales of imported Amstel and Heineken beer made good
progress in Lebanon. Heineken increased its shareholding in Almaza S.A.L., Lebanon’s only brewery, from % to
%. The Almaza brand has a % market share.
Production capacity will be increased from , hl
to , hl, and Almaza will also produce Amstel for the
local market and for export within the region.
The unstable situation in Is ra e l had a negative impact
on the beer market and hence on the sales and results of
35
Beer consumption in the Gu l f st ates picked up again
Regional Review
Asia/Pacific
Apart from China, the countries of the Asia/Pacific
8.0
7.5
7.8
8
in the region increased from . million hl to . million
hl. Sales of Heineken beer developed strongly, espe-
6.2
7.0
7
6
region remained economically weak in . Our sales
cially in Thailand and Vietnam.
Heineken has built a strong position in this region. The
main pillar supporting that position is Asia Pacific Breweries, a Singapore-based joint venture between Heineken
and Fraser & Neave, which has interests in many breweries
5
in the region. Heineken beer is produced at several Asia
Pacific Breweries plants. Heineken has its own operating
companies in Indonesia and on New Caledonia. Imported
4
Heineken beer is available in several countries in the
region and in some it is brewed under licence. Heineken’s
market position is particularly strong in Thailand, Vietnam,
3
Hong Kong and Taiwan.
In China, the process of consolidation in the beer market continued. The Chinese market is growing rapidly,
2
but with little scope for good profit margins and as yet few
growth opportunities for international premium beers.
The large brewers aspire to national coverage, which
1
translates into keener competition and higher marketing
costs. Heineken sees China as a long-term growth market
and is confident of achieving growth through a com-
0
19
9
19 8
99
20
0
20 0
0
20 1
02
bination of local breweries, with their own brands and distribution networks, and the Heineken brand. Asia Pacific
Breweries sold more beer in China, but the result was
depressed to some extent by the heavy investment in
Group volume
marketing. Hainan Asia Pacific Brewery’s sales were down
Asia/Pacific
and its result was lower, but Shanghai Asia Pacific Brew-
ery’s sales improved, thanks mainly to the growth of the
Reeb Superlite and Tiger brands. Sales of Heineken beer
in China were weakened by strong competition from local
beers and changes in the distribution system. Hong Kong’s
economy remained lacklustre and beer consumption
again declined. Imported beers, including Heineken, lost
market share to low-priced Chinese beers.
Despite the deteriorating economic situation in
Si n g apore, Asia Pacific Breweries Singapore achieved
higher sales, an improved result and growth in market
share. On-trade sales received a major boost from the soccer World Cup in July. The success of Tiger’s ‘What time is
it?’ campaign created a more youthful and aspiring image
for the Tiger brand. The Heineken brand developed exceptionally well.
In Thailand , the growth in the beer market levelled off,
but the premium segment continued to expand. Sales of
Heineken beer rose sharply. Thai Asia Pacific Brewery’s
36
The packaging is the face
combining the traditional lines
which the beer presents to the
of the Heineken logo with
world. To keep our brands
modern silver elements,
young and relevant, it’s impor-
evoked responses such as
tant to keep our packaging
‘innovative’, ‘exclusive’,
fresh. Heineken regularly
‘modern’ and ‘quality’ in con-
introduces updated designs
sumer surveys. The new can
and temporary themed packs.
was launched in Hong Kong
Trials in eight countries last
at the end of  and will be
year with a new can design in
introduced in France, Greece
the shape of a beer keg,
and the UK in .
> Packaging Innovative and surprising
In  Heineken Music
is Found@Thirst - a competition
launched Thirst, a series of
where local talent, as voted
dance events held around the
for by young consumers,
world. Launched in Ireland,
get a chance to play alongside
then held in Asia and Brazil
a world-class DJ who headlines
last year, Thirst will move to
the big event.
South America, New Zealand,
Details on up-coming Thirst
Asia and Europe in .
events can be found on
Preceding the main Thirst
www.heinekenmusic.com.
event in each country,
> I t ’s F O U N D @ T h i r s t A m i x o f t h e f r e s h e s t i n g r e d i e n t s
Regional Review
Asia/Pacific
result remained steady. Capacity at the brewery is being
The beer market in Indonesia contracted by over % in
doubled to . million hl, with the new capacity coming on
response to the economic and political situation, greatly
stream in mid-.
increased excise duties, limited consumer purchasing
In Cambodia , despite a shift to lower-priced beers in
power and reduced tourist numbers. The terrorist attack
response to an increase of around % in excise duties and
on Bali had a temporary impact on tourism, which was
the closure of a number of on-trade outlets by the authori-
recovering after the attacks in the United States in .
ties, Cambodia Brewery posted higher beer sales. The
Multi Bintang Indonesia maintained its market share, but
brewery was able to compensate for the effects of the nar-
its sales and result were well down.
rower margins to some extent by reducing its costs.
In Malaysia , Guinness Anchor Berhad achieved higher
sales of all its brands (Heineken, Tiger, Anchor and Anchor
Ice) in a declining beer market, and returned an improved
result.
Beer consumption in Vietnam continued to rise and
Vietnam Brewery’s sales and result were significantly higher, supported by growth in both the Heineken and Tiger
Price competition on New Caledonia forced Grande
Brasserie de Nouvelle-Caledonie to reduce its selling
prices. Both its beer sales and its result improved.
The economic situation on Tahiti was exacerbated
by declining tourism and Brasserie de Tahiti, in which we
have a minority interests, reported lower sales.
Sales of Heineken beer in Australia continued to grow
in a contracting beer market.
brands. In the north of the country, Asia Pacific Breweries
In Taiwan , we set up our own marketing and sales
is building a second facility which will come on stream in
organisation for imported Heineken beer and upgraded
October  with an initial capacity of , hl. APB’s
the distribution function. Sales of Heineken beer were
interest in Hatay Brewery was increased from % to %.
higher in a slightly weaker beer market.
The downward trend in the New Zealand beer market
continued. DB Group’s sales held firm and the result
The beer market in Japan was adversely affected by
the growing sales of low-priced Happoshu, a low-malt beer
improved thanks to a better sales mix and tighter cost con-
which attracts a lower rate of excise duty. Heineken
trol. Sales of Heineken beer and the local Monteith premi-
strengthened its position in prime on-trade locations and
um brand continued to grow. DB Group introduced a range
sales were slightly higher.
of fruit-flavoured beers under the Hopper brand.
Although the economy remained weak, last year brought
Rising purchasing power in Kazakhstan translated
into rapid growth in beer consumption. The economy is
growth in the beer market in Papua New Guinea. South
growing vigorously, helped by the presence of large oil
Pacific Brewery’s sales were sharply higher and its result
reserves. Our interest in the Dinal brewery in Kazakhstan
improved a little, despite the devaluation of the kina, the
was increased from % to %. Sales of the Amstel and
local currency.
Tian Shan brands were up by %.
39
Financial Review
1,282
1300
720
1100
660
600
50
900
540
45
480
40
40.2
35
386
30
25
240
20
300
180
15
200
120
10
100
60
5
0
0
0
19
9
19 8
99
20
0
20 0
0
20 1
02
02
20
01
20
00
20
9
19
9
8
19
9
19
9
19 3
94
19
9
19 5
9
19 6
9
19 7
9
19 8
9
20 9
0
20 0
0
20 1
02
362
406
400
459
300
457
500
373
360
546
600
377
659
418
420
37.7
445
441
700
465
799
800
481
43.6
921
578
48.5
1000
47.9
1,125
696
1200
investments
depreciation
Operating profit
Tangible fixed assets,
Group equity
net investments and depreciation
as a percentage of
total assets
40
Financial Review
Net turnover
our interests in Heineken España from .% to .% and
in Heineken Slovensko, in Slovakia, from .% to .%.
In , part of the costs of temporary point-of-sale
in billions of euros
activities were reclassified as marketing and selling
Wines and spirits
expenses. To facilitate comparison, these costs have been
0.5
similarly reclassified in the  figures, increasing both
net turnover and marketing and selling expenses in 
Soft drinks
Beer
0.9
8.6
by € million. The operating profit was unaffected.
Operating expenses rose by .% to €, million, half
of this increase being accounted for by the new consolida-
Other income
tions. The price of raw materials and the cost of packaging
0.3
increased slightly, as did energy costs. There was once
again heavy investment in strengthening our brands and
market positions, lifting marketing and selling expenses
Net turnove r a nd cos t of s a le s
by % to €, million. Expressed as a proportion of net
Net turnover in  was up by %, at €, million,
turnover, these costs amounted to .% compared with
an increase of € million, with first-time consolidations
.% in .
accounting for half of this increase. Organic growth in net
turnover amounted to %, with a % increase accounted
for by improved selling prices and a better sales mix and
Project costs not qualifying for capitalisation were lower
than in .
Staff costs were higher, reflecting the increase in the num-
% due to higher sales volume. Exchange rate movements
ber of employees due to new consolidations and additional
had the overall effect of depressing net turnover by %.
pension charges. A total of € million in additional pension
The following changes in the consolidation took place
charges was borne in . It was possible, however, to set
in . The .% participating interest in BrauHolding
off half of this additional pension charge against existing
International, in Germany, a joint venture of Heineken N.V.
provisions for staff costs. There were extra write-downs
and Bayerische BrauHolding AG, has been proportionally
in particular of stocks of finished products and spares.
consolidated with effect from  January . In ,
this participating interest was carried at net asset value.
Operating profit and net profit
In addition, Al Ahram Beverages Company in Egypt,
The operating profit rose by % in  to €, million.
Almaza in Lebanon and Barú in Panama have been fully
The greater part of this increase was due to the higher
consolidated with effect from  October . A number of
sales volume, the improvement in the sales mix and the
beverage wholesalers in France, Italy and Switzerland
higher selling prices. The newly acquired participating
were also consolidated. And during the year we increased
interests, which were included in the consolidation for
2002
2001
Change (%)
Turnover and costs
10 , 2 9 3
9,333
10
Raw materials, consumables and services
5,558
5,089
9
Excise duties
1,282
1,226
5
Staff costs
1,642
1,417
16
Net turnover
529
476
11
Total operating expenses
9 , 0 11
8,208
10
Operating profit
1,282
1,125
14
Amortisation/depreciation and value adjustments
41
Financial Review
2002
2001
Change (%)
1,282
1,125
14
48
45
7
Operating profit and net profit
Operating profit
Income of non-consolidated participating interests
Interest
– 109
– 71
54
Profit before tax
1,221
1,099
11
Taxation
– 364
– 327
11
Profit after tax
857
772
11
Minority interests
– 62
– 57
14
795
715
11
–
52
–
795
767
4
Extraordinary result after tax
Net profit
the first time, also contributed to the higher operating
C ash fl ow an d i nvest m en t s
profit. The net effect of exchange rate movements was
The cash flow from operating activities rose by € million
minor. The operating profit as a proportion of net turnover
to €, million, but most of the increase in operating
amounted to .% compared with .% in . Income
profit and depreciation charges was offset by an increase
from non-consolidated participating interests increased
in working capital. Gross investments in tangible fixed
by € million to € million, chiefly as a result of our share
assets amounted to € million, set against which were
in the profits of Florida Bebidas in Costa Rica. This compa-
disposals totalling € million. Significant net investments
ny, in which we acquired a % interest in , was car-
were made in Nigeria (€ million), the Netherlands (€
ried at net asset value. Interest charges rose by € million
million), France (€ million), Spain (€ million), Poland
overall, to € million, owing to the financing of acquisi-
(€ million) and Italy (€ million). An amount of €,
tions. The tax burden remained unchanged at .%.
million was invested in new acquisitions and expanding
Minority interests in the result were higher, reflecting
existing interests. The acquisitions related to Bravo Inter-
the strong performance in Poland in particular. Net profit
national in Russia, Al Ahram Beverages Company in Egypt,
rose by .% to € million. The net profit on ordinary
Almaza in Lebanon and Barú in Panama, as well as bever-
activities per share of €. nominal value increased from
age wholesalers in Italy, France and Switzerland. Existing
€. to €..
2002
2001
1,184
1,165
Dividends paid
– 187
– 168
– 1,973
– 783
– 976
214
Cash flow
Cash flow from investing activities
Borrowings
484
86
Repayments on loans
– 56
– 182
–1
57
– 549
175
Other financing
42
Financial Review
2002
%
2001
%
2,936
38
3,139
44
381
5
357
5
Financing structure
Group equity
Deferred taxation
600
8
667
9
3,864
49
3,032
42
7,781
100
7,195
100
Other provisions
Liabilities
interests in Kazakhstan, the Slovak Republic and Spain
P rofi t appropr i at i on
were also increased, and minority participating interests
Net profit for Heineken N.V. in  amounted to €
were acquired in Costa Rica and Nicaragua. Investments
million. In accordance with Article  of the Articles of
in intangible fixed assets and other financial fixed assets
Association, the Annual General Meeting of Shareholders
amounted to € million and € million, respectively.
will be invited to appropriate an amount of € million
for distribution as dividend. This proposed appropriation
Financing and liquidity
corresponds to a dividend of €. per share of €.
Group equity decreased from €, million as at 
nominal value, out of which an interim dividend of €.
December  to €, million as at  December .
was paid on  September . The final dividend thus
Shareholders’ equity fell by € million to €, million.
amounts to €. per share. Dutch withholding tax at %
Set against the addition of the net profit of € million
will be deducted from the final dividend. It is proposed to
and revaluations of € million were goodwill charges of
add the remaining amount of € million to the general
€ million, adverse exchange differences of € million
reserve.
and a proposed dividend distribution of € million.
Owing to the increase in the interest-bearing liabilities and
Amsterdam,  February 
the reduction in cash, largely as a result of financing acquisitions, the net debt position increased from € million
Ruys
Van Boxmeer
to €, million as at  December .
Bolland
Hooft Graafland
43
Heineken Prizes 2002
The five Heineken prizes for art and science awarded by
can be accessed not only at the North and South Poles,
Heineken Stichting and Stichting Alfred Heineken Fondsen
but also in the tropics, for example on Mt. Kilimanjaro.
were presented by His Royal Highness Prince Willem-
As one of the first to realise that global warming posed a
Alexander in September 2002. The recipients of the
threat to a number of the world’s ice archives, he is intent
biennial Heineken prizes, with a total monetary value of
on gathering more data without delay. The climatic and
over €650,000, are selected by the Royal Netherlands
atmospheric history recorded in the ice can go back as far
Academy of Arts and Sciences.
as , years. His research provides an insight into natural climate change, which will ultimately make it possible
The Dr. H.P. Heineken Prize for Biochemistry and
to assess humanity’s impact on the earth’s climate, which is
Biophysics was awarded to Prof. Roger Y. Tsien in the US,
still the subject of heated debate among researchers.
for his unique and exceptional contribution to the develop-
The Dr. A.H. Heineken Prize for History was awarded to
ment of a range of methods and techniques for measuring
Prof. Heinz Schilling in Germany for his outstanding inter-
and visualising processes within and between cells.
disciplinary research into the history of early modern
Prof. Tsien has successfully isolated and cloned the GFP
Europe, in which he reveals the interrelationship between
(green fluorescent protein) molecule of the Aequora
confessionalisation and national identity formation.
Victoria jellyfish, which glows brightly in the dark, and has
His research encompasses the relationship between
even managed to synthesise different-coloured variants.
Church and State, the role of migrants, the imposition of
Introducing GFP variants into cells enables direct obser-
norms and values and the comparison of developments
vation of all kinds of biochemical processes within living
across Europe: issues which are still current today. His goal
cells, including monitoring signals between cells, measur-
is to identify the relationship between these and other
ing intracellular acidity and sodium and calcium transfer
issues in early modern Europe (–), the time of the
within and between cells and measuring phenomena with-
Reformation and Counter-Reformation, by studying reli-
in cell organelles. His methods are now widely used by
gious, social and political factors in relation to each other.
fellow researchers for other purposes, such as identifying
He shows that the newly formed Protestant and Catholic
the factors involved in cell malignancy.
states began working closely with what was generally
The Dr. A.H. Heineken Prize for Medicine was awarded
the only official church within their region. He makes clear
to Prof. Dennis J. Selkoe in the US for his contribution to
that there is much greater unity in European history than
the development of the molecular study of diseases of the
was previously assumed, transcending the boundaries
brain, in particular Alzheimer’s disease. Since the s,
between countries and religions.
he has been using methods drawn from biochemistry and
The Dr. A.H. Heineken Prize for Art was awarded to
molecular biology to unravel, slowly but surely and with
Aernout Mik in the Netherlands for his consistent oeuvre
great patience, the molecular components of the puzzle
of installations in which he combines video and other artis-
which is the complex disorder known as Alzheimer’s dis-
tic media. His working method has had a major influence
ease. The process of identifying the causal relationships
on the present generation of video artists in the Nether-
and processes within brain cells has now reached the
lands. In Mik’s video films the events which occur between
stage where the first patients are taking part in a trial with
the characters stand on their own, but evoke conflicting
drugs intended to delay or prevent the disease, an
emotions of a disquieting or humorous nature. This effect
advance of inestimable social significance. His work has
is reinforced by the fact that Mik creates several layers of
also led to a better understanding of the ageing processes
reality, in which he combines staged action – both live and
in the brain and the onset and progression of Parkinson’s
on video – with sculptural forms embedded in an architec-
disease.
tural structure, thus creating a physical link between the
The Dr. A.H. Heineken Prize for Env ironmental
viewer and the work. A good example of this was his 
Sciences was awarded to Prof. Lonnie G. Thompson in
installation based on an architectural structure consisting
the US for his pioneering work in research into ice cores in
of steadily narrowing corridors and low doorways, show-
the polar regions and the tropics. He is convinced that ice
ing video films of collapsing buildings and injured people,
is the best record of the earth’s climate. That frozen record
next to a life-size dummy of an anthropoid ape.
44
> Financial Statements 2002
Consolidated Balance Sheet
after appropriation of profit
31 December
2002
31 December
2001
Assets
Fixed assets
39
13
Tangible fixed assets
4,094
3,592
Financial fixed assets
835
Intangible fixed assets
531
4,968
4,136
Current assets
Stocks
Receivables
Securities
Cash
765
692
1,270
1,192
98
29
680
1,146
2,813
3,059
7,781
7,195
Equity and liabilities
Group equity
Minority interests in other group company’s
2,543
2,758
393
Provisions
381
2,936
3,139
981
1,024
Liabilities
Long-term borrowings
1,215
797
Current liabilities
2,649
2,235
46
3,864
3,032
7,781
7,195
Consolidated Profit and Loss Account
2001*
2002
10,293
Net turnover
9,333
Raw materials, consumables and services
5,558
5,089
Excise duties
1,282
1,226
Staff costs
1,642
1,417
529
476
Total operating expenses
9,011
8,208
Operating profit
1,282
1,125
48
45
Interest
– 109
– 71
Profit before tax
1,221
1,099
Taxation
– 364
– 327
Results of non-consolidated participating interests
Group profit after tax
857
772
Minority interests
– 62
– 57
795
715
–
52
795
767
391,979,675
391,979,675
2.03
1.82
Net profit
Number of shares in issue
Net profit per share on ordinary activities
* The 2001 figures have been restated for comparison purposes.
F I N A N C I A L S TAT E M E N TS 2 0 0 2
47
Consolidated Cash Flow Statement
2002
2001
Cash flow from operating activ ities
Operating profit
1,282
1,125
Results of non-consolidated participating interests
48
45
529
476
Movements in provisions
Movements in working capital
–8
– 32
– 223
– 42
Cash flow from operations
1,628
1,572
Interest paid and received
– 103
– 74
Taxation paid on profits
– 341
– 333
1,184
1,165
Dividends paid
– 187
– 168
997
997
less dividends paid
Cash flow from investing activ ities
– 35
– 17
– 696
– 578
Consolidated participating interests
– 799
– 148
Non-consolidated participating interests
– 423
– 74
Extraordinary result on participating interests
disposed of
Other financial fixed assets
–
52
– 20
– 18
– 1,973
– 783
Cash flow from financing activ ities
484
86
Repayment of long-term borrowings
– 56
– 182
–1
57
Share issue by group companies
Net cash flow
427
– 39
– 549
175
Other cash movements
Changes in the consolidation
– 88
99
Exchange differences
– 36
– 14
Movement in net cash
– 673
260
680
1,146
The net cash position is made up of
Cash
Securities
Bank overdrafts
Position as at 31 December
48
98
29
– 573
– 297
205
878
Notes to the Consolidated Balance Sheet,
Profit and Loss Account and Cash Flow Statement for 2002
General
Foreign currency
The financial statements and the report of the Executive
Hedging transactions to limit exchange risks are entered
Board have been prepared in accordance with the provi-
into only in respect of actual amounts receivable and
sions of Part , Book , of the Netherlands Civil Code.
payable and highly probable future cash flows in foreign
There were a number of changes in the scope of the con-
currencies. The instruments used are forward contracts
solidation during the year, the following being the more
and options. Before such contracts are entered into,
significant of these with regard to the financial statements.
inward and outward cash flows in a particular currency are
The .% participating interest in BrauHolding
netted off at group level as far as possible. Where foreign
International, in Germany, has been proportionally
currency balance sheet positions have been hedged, they
consolidated with effect from  January . In , this
are translated at the exchange rate of the hedge.
participating interest was carried at net asset value. Bravo
Recognition of results arising from hedging operations
International in Russia has been fully consolidated with
relating to future foreign currency cash flows is deferred
effect from  January . In addition, Al Ahram in Egypt,
until the relevant cash flows are accounted for. Other for-
Almaza in Lebanon and Barú in Panama have been includ-
eign currency transactions in the profit and loss account
ed in the consolidation with effect from  October .
are recognised at spot rates unless forward contracts have
There was also a certain amount of expansion of existing
been entered into in connection with these transactions,
interests and a number of beverage wholesalers were
in which case the forward rate applies.
acquired. These changes in the consolidation led to an
The financial statements of non-eurozone companies
increase in net turnover of € million. The acquisitions
are translated into euros. Assets and liabilities are trans-
also resulted in a goodwill charge to equity of € million.
lated at exchange rates on the balance sheet date.
From  part of the costs of temporary point-of-sales
Profit and loss account items are translated at the average
activities were reclassified as marketing and selling
monthly exchange rates. The difference between the net
expenses, whereas previously they were deducted from
profit based on average exchange rates and the net profit
net turnover. To facilitate comparison, both net turnover
based on the exchange rates as at balance sheet date is
and marketing and selling expenses in  have been
accounted for in the revaluation reserve. The profit and
increased by € million.
loss accounts of companies in hyperinflation countries are
The financial information relating to Heineken N.V. has
been included in the consolidated balance sheet and profit
and loss account. The abridged presentation permitted by
translated at exchange rates prevailing on the balance
sheet date.
Differences in book value arise on translation into euros
Section , Part , Book , of the Netherlands Civil Code
of the opening balance of the shareholders’ equity of the
has accordingly been used for the Heineken N.V. profit and
non-eurozone consolidated companies plus intra-group
loss account.
long-term loans granted to these companies. These differ-
The amounts disclosed in the notes are in millions of
euros unless otherwise indicated.
ences are treated as revaluations and are credited or debited directly to group equity, with due allowance for taxation. Other differences due to exchange rate movements
Consolidation
are accounted for directly in the profit and loss account.
Heineken N.V. and the subsidiaries with which it forms a
group are fully consolidated in the consolidated balance
Valuation of assets and liabilities
sheet and profit and loss account, with minority interests
in group equity and group profits shown separately.
Proportional consolidation is applied in the case of com-
Goodwill, the difference between the price paid for partici-
panies in which the Heineken group has a direct interest
pating interests and their valuation according to Heineken
and exercises a controlling influence on management
accounting policies, is charged to shareholders’ equity
decisions in partnership with other shareholders.
where the group exercises at least a significant influence
In the analyses of movements in various assets and
on management decisions. In the case of acquisition of
liabilities, disclosures of ‘changes in the consolidation’
beverage wholesalers, the purchase price is almost entire-
relate to increases or decreases in the group’s interests
ly determined by the customer base and, that being the
in consolidated companies.
case, it is treated as goodwill.
49
Notes to the Consolidated Balance Sheet, Profit and Loss Account and Cash Flow Statement for 2002
When the relevant legal requirements are changed, good-
is deducted from the carrying amount as an impairment
will will be capitalised and amortised over the expected
loss and charged to the profit and loss account.
economic life of the assets concerned.
Other intangible fixed assets are capitalised and amor-
Current assets
tised by the straight-line method over three years. If the
Stocks bought in from third parties are stated at replace-
net realisable value of intangible fixed assets is less than
ment cost, arrived at on the basis of prices from current
the carrying amount, a diminution in value is applied.
purchase contracts and latest prices as at balance sheet
Costs of internally developed brands, patents and licences
date. Finished products and work in progress are stated at
and research and development are expensed.
manufactured cost based on replacement cost and taking
Brands, patents and licences purchased with acquisitions
into account the production stage reached. Stocks of
are treated as part of the goodwill paid.
spare parts are depreciated on a straight-line basis taking
account of obsolescence. If the recoverable amount or net
realisable value of stocks is less than their replacement
Except for land, which is not depreciated, tangible fixed
cost, provisions are made in respect of the difference.
assets are stated at replacement cost less accumulated
Advance payments on stocks are included at face value.
depreciation. The following average useful lives are used
Receivables are carried at face value less a provision
for depreciation purposes:
for credit risks and less the amount of deposits on return-
Buildings
 -  years
able packaging.
Plant and equipment
 -  years
Other fixed assets
 -  years
Securities are carried at the lower of historical cost
and quoted price, or estimated market value in the case
of unlisted securities.
The replacement cost is based on appraisals by internal
Cash is included at face value.
and external experts, taking into account technical and
economic developments. Other factors taken into account
Revaluations
include the experience gained in the construction of
Differences in carrying amounts due to revaluations
breweries throughout the world.
are credited or debited to group equity, less an amount
Grants received in respect of investments in tangible
in respect of deferred tax liabilities where applicable.
fixed assets are deducted from the amount of the investment.
Projects under construction are included at cost.
Provisions
The provision for deferred tax liabilities is formed in
respect of timing differences between the balance sheet
for reporting purposes and the recognition of assets and
Non-consolidated participating interests where the group
liabilities for tax purposes as well as taxation on profit
has a significant influence are stated at the Heineken
distributions borne by the group. The liabilities are calcu-
share of the net asset value, which is arrived at as far as
lated at the standard tax rates on balance sheet date and
possible on the basis of the Heineken accounting policies.
are stated at face value. Deferred tax assets are netted
Other non-consolidated participating interests are stated
off against deferred tax liabilities of the same kind
at cost less any necessary provisions.
over matching periods. A net deferred tax asset is not
Loans to non-consolidated companies and other financial fixed assets are carried at face value, less provisions
for credit risks.
recognised unless future realisation is reasonably certain.
The provisions for pension liabilities and similar
schemes are calculated at net present value according to
actuarial principles based on current pay levels. Full provi-
Impairment of assets
sion is made for pension liabilities in respect of accrued
Regular assessments are made for any indications that
benefit rights. Prior-service liabilities resulting from
intangible and tangible fixed assets might be impaired.
improvements in remuneration packages and pension
If any such indications exist, the net realisable value of
plans are added to the provision for pension liabilities and
the assets concerned is determined. If the net realisable
charged directly to the result.
value of an asset is less than its book value, the difference
50
Provisions connected with reorganisation plans are cal-
Notes to the Consolidated Balance Sheet, Profit and Loss Account and Cash Flow Statement for 2002
culated at the net present value of the benefit commit-
consist of dividends received during the year from com-
ments in connection with early retirement, relocation
panies carried at cost and Heineken’s share of the net
and redundancy schemes. Where applicable, the expected
profits of companies carried at net asset value. The share
degree of employee participation in the schemes concern-
of the results of companies carried at net asset value
ed is taken into account.
is calculated as far as possible in accordance with group
accounting policies for the determination of results,
Liabilities
Long-term borrowings and current liabilities are stated
at face value.
taking account of taxation and minority interests.
Interest expenses are allocated to the periods to which
they relate. Results arising from operations involving interest rate hedging instruments are also accounted for as
Determination of results
interest. Such instruments are used to hedge the risk of a
Income and expenses are accounted for in the profit and
reduction in interest income on surplus funds temporarily
loss account at the time of supply of the relevant goods
invested in bank deposits due to falling interest rates and
or services.
higher interest charges on interest-bearing liabilities due
Net turnover means the proceeds from sales of
products and services supplied to third parties, net of
sales taxes and customer discounts.
Raw materials and consumables are stated at replace-
to interest rate rises. Interest rate hedging instruments
are not used without a corresponding underlying position.
Taxation on profits is calculated on the profit shown
in the financial statements by applying the standard tax
ment cost in the profit and loss account.
rates, taking into account tax payable by the group on
Excise duties are stated at the actual amounts payable.
profit distributions by participating interests and applica-
Depreciation charges based on replacement cost are
ble tax facilities. Differences between the amount thus
calculated on a straight-line basis according to the esti-
calculated and the tax actually payable for the year are
mated useful lives of the assets concerned.
accounted for in the provision for deferred tax liabilities.
The results of non-consolidated participating interests
51
With effect from , investments in major ICT projects
In , an amount of € million (: € million) was
and technical innovations satisfying the applicable criteria
capitalised and an amount of € million (: € million)
have been capitalised and amortised over three years.
was amortised.
Total
Land and
Plant and
Other
Projects under
buildings
equipment
fixed assets
construction
241
Position as at 1 January 2002
3,592
1,135
1,500
716
378
137
149
77
15
Investments less disposals
696
40
264
182
210
–
28
142
69
– 239
– 144
– 37
– 60
– 32
– 15
53
9
40
4
–
Depreciation and value adjustments
– 481
– 62
– 218
– 201
–
Position as at 31 December 2002
4,094
1,250
1,817
815
212
Completed projects
Revaluation
This book value is made up as follows:
Replacement cost
Accumulated depreciation
9,897
2,790
4,781
2,114
212
– 5,803
– 1,540
– 2,964
– 1,299
–
4,094
1,250
1,817
815
212
622
237
355
30
–
The aggregate amount of revaluations included
in the book value as at 31 December 2002 is:
Other fixed assets includes vehicles, office equipment and
returnable packaging. Projects under construction also
includes advance payments on tangible fixed assets on
order. With effect from 2002, investment grants have
been deducted from the cost of the tangible fixed assets
concerned.
52
Additions/loans granted
Disposals/loan repayments
Revaluation
Total
Other financial
Shares
Loans
fixed assets
531
182
1
348
31
– 26
7
50
601
433
1
167
– 158
– 10
–6
– 142
–7
–6
–1
–
–
– 182
– 182
–
Other value adjustments
–1
–1
–
–
Share in net profit
26
26
–
–
Dividends received
–6
–6
–
–
835
410
2
423
Goodwill
Other financial fixed assets includes €295 million (2001:
€270 million) in respect of loans to customers and €22 million (2001: €30 million) in respect of deferred tax assets.
2002
2001
Stocks
Raw materials
112
118
58
46
Finished products
184
167
Goods for resale
125
110
72
65
159
138
55
48
Work in progress
Non-returnable packaging
Other stocks
Advance payments on stocks
765
692
Receivables
Amounts falling due within one year:
Trade debtors
1,111
Packaging deposits
– 266
1,070
– 256
845
814
44
57
Other amounts receivable
221
171
Prepayments and accrued income
160
150
1,270
1,192
53
2002
2001
Securities
Listed securities
83
16
Unlisted securities
15
13
98
29
Cash
Cash in hand and at bank
324
362
Short-term cash deposits
356
784
680
1,146
Total cash not freely disposable amounts to €121
million, mainly relating to letters of credit.
Position as at 1 January
2,758
– 107
16
32
56
– 778
– 320
795
767
– 157
– 157
Revaluation
Goodwill
Net profit for the year
Dividend for the year
2,396
2,543
2,758
For an analysis of shareholders’ equity, reference is
made to the balance sheet of Heineken N.V. as at 31
December 2002 on page 66.
Minority interests
381
124
25
156
– 55
–
Revaluation
12
5
Minority interests in group profit
62
57
– 31
– 20
–1
59
Dividends payable to minority shareholders
Share issue
54
393
381
Prov isions
Deferred tax
Pension
Other
liabilities
liabilities
provisions
357
338
329
Total
The movements were:
1,024
27
21
3
51
Revaluation/exchange differences
–7
–4
–3
– 14
Added/released
–3
96
5
98
Utilised
–
– 33
– 73
– 106
Other movements
7
– 66
– 13
– 72
381
352
248
981
The provision for pension liabilities relates to pensions and
is % (: %). The other provisions comprise reorga-
annuities which have not been insured with third parties.
nisation provisions, provisions formed for receivables from
With effect from , the provisions for early retirement
participating interests, for contracts of suretyship provided
and other schemes under which people are laid off with
and for current lawsuits. Additions due to planned and
pension-like arrangements have been included in this
announced restructuring programmes are charged to the
item. In  additional pension charges amounted to
profit and loss account, with the exception of restructuring
€ million, although half of this amount could be set off
programmes relating to recently acquired companies,
against existing provisions for staff costs. The average
which are taken into account in the calculation of goodwill.
rate of interest used in calculating the net present value
€ million of the provisions (: € million) has a
of the provision for pension liabilities, based on current
term in excess of one year.
applicable interest rates in the countries concerned,
55
2002
2001
Total
More than 5 years
Total
More than 5 years
337
110
264
150
1
–
61
–
162
–
16
–
Amounts falling due after more than one year
relate to:
Loans from credit institutions, in EUR,
average effective interest rate 5.2%
Loans from credit institutions, in PLN, average
effective interest rate 3.62% (2001: 15.8%)
Loans from credit institutions, in EUR, average
Loans from credit institutions, in EUR, average
427
–
278
278
Private loan, in EGP, interest rate 11.9%
37
37
–
–
Private loan, in EUR, interest rate 5.8%
68
–
68
68
Other private loans, in various currencies,
average interest rate 5.2% (2001: 5.45%)
Other loans, interest-free
118
20
72
16
65
26
38
21
1,215
193
797
533
Security in the form of mortgages totalling €116 million
(2001: €113 million) has been provided in respect of the
other private loans.
Current liabilities
Amounts falling due within one year relate to:
Repayment commitments on long-term
205
32
Bank overdrafts
573
297
Suppliers
629
620
Taxation and social security contributions
322
335
Dividend
105
107
Short-term deposits
261
241
borrowings in 2003
Amounts owed to non-consolidated participating
1
3
Other creditors
250
242
Accruals and deferred income
303
358
interests
2,649
Tangible fixed assets totalling €140 million (2001: €205
million) have been pledged to the authorities in a number
of countries as security for the payment of taxation, particularly excise duties and import duties.
56
2,235
2002
2001
48
56
53
84
Off-balance-sheet commitments
Tenancy and operating leases
Capital expenditure commitments, unless already
included in tangible fixed assets
Long-term raw material purchase contracts
176
186
Declarations of joint and several liability
398
286
29
12
150
–
Currency hedging instruments in US dollars
904
1,321
Currency hedging instruments in other currencies
114
206
1,029
925
Other off-balance-sheet commitments
Loan to Stichting Heineken Pensioenfonds
In 2003, a subordinated loan of €150 million will be
granted to Stichting Heineken Pensioenfonds to satisfy
the more stringent minimum reserves requirements of
the Pensions and Insurance Supervisory Board in the
Netherlands.
Financial instruments
Contract value as at 31 December
Interest-hedging instruments
Financial instruments are used in the normal course of
one year. Approximately % of the risk of a reduction
business to hedge the effects on results of fluctuations
in interest income on these deposits due to a fall in the
in exchange rates and interest rates. The most important
interest rate or an increase in interest charges due to a rise
foreign currency inflow is denominated in US dollars and
in the interest rate on interest-bearing liabilities is hedged
is generated by export activities. The expected net cash
with interest rate instruments. These interest-hedging
flow in US dollars, which amounts to around USD 
instruments include interest rate swaps, forward rate
million per annum, is hedged well in advance by means of
agreements and caps and floors. The interest-hedging
a combination of forward contracts and options. This poli-
instruments with a term of more than one year amount
cy reduces the volatility of export sales proceeds and
to €, million. As at  December , the aggregate
results due to short-term fluctuations in the value of the
market value of the various financial instruments used
US dollar against the euro and delays the impact of long-
amounted to € million. Currency and interest rate risk
term fluctuations on results. The financial instruments
management is governed by a stringently defined policy
used to hedge foreign exchange fluctuations, with a term
and strict rules. Only a limited number of counterparties
of longer than one year, amount to € million. As far as
are used, all with excellent credit ratings. The activities
possible, temporary cash surpluses are held centrally and
are closely monitored, independently of implementation.
invested in bank deposits in euros with maximum terms of
57
Notes to the Consolidated Profit and Loss Account
Information by geographical area
As almost the entire net turnover of the group is account-
Europe, Western Hemisphere, Africa/Middle East and
ed for by just one product group, namely beer, the finan-
Asia/Pacific. Since nearly all export production facilities
cial information is segmented by geographical area only.
are located in Europe, the results of these activities are
The remaining activities are not reported on a segmented
reported under Europe. The results and assets, analysed
basis. The following four regions are distinguished:
by region, are presented below.
Results
Europe
Western Hemisphere Africa/ Middle East
Asia/Pacific
Eliminations
Consolidated
(incl. exports)
2002
2001*
2002
2001
2002
2001
2002
2001
2002
2001
2002
2001*
Net turnover
Third-party sales proceeds
7,488
6,824
1,372
1,176
795
747
471
465
Interregional sales proceeds
1,276
1,127
–
–
–
–
–
–
Total sales proceeds
8,764
7,951
1,372
1,176
795
747
471
465
156
126
1
–
40
29
5
7
Proceeds from services
–
– 10,126
– 1,276 – 1,127
9,212
–
–
– 1,276 – 1,127 10,126
9,212
– 35
– 41
167
121
8,920
8,077
1,373
1,176
835
776
476
472
– 1,311 – 1,168 10,293
9,333
Excise duty
889
831
131
107
120
144
142
144
1,282
1,226
Operating profit
996
881
70
55
169
129
47
60
–
–
1,282
1,125
12
6
23
20
6
5
7
14
–
–
Net turnover
Results of non-consolidated
48
45
Interest
– 109
– 71
Taxation
– 364
– 327
– 62
– 57
795
715
–
52
795
767
participating interests
Minority interests
Net profit on ordinary
activities
Net profit
58
Balance sheet
Europe
Western Hemisphere Africa/Middle East
Asia/Pacific
Consolidated
(incl. exports)
2002
2001*
2002
2001
2002
2001
2002
2001
2002
2001*
6,199
5,280
4,726
328
308
1,027
768
361
397
6,996
36
53
331
87
25
23
18
20
410
183
5,316
4,779
659
395
1,052
791
379
417
7,406
6,382
375
813
7,781
7,195
4,845
4,056
Total liabilities as per balance sheet
4,845
4,056
Group equity
2,936
3,139
Operating assets
Total assets
Invested cash
Total assets as per balance sheet
Total provisions and liabilities
Investments in intangible fixed assets
Investments in tangible fixed assets
Amortisation of intangible fixed assets
3,651
3,207
334
236
729
469
131
144
34
17
1
–
–
–
–
–
35
17
461
442
10
17
208
103
17
16
696
578
10
4
–
–
–
–
–
–
10
4
420
403
10
10
33
35
18
17
481
465
Depreciation of and value adjustments
to tangible fixed assets
2001*
2002
Raw materials, consumables and serv ices
Raw materials
525
507
949
873
Goods for resale
1,080
978
Marketing and selling expenses
Packaging
1,585
1,451
Transport costs
402
357
Energy and water
147
138
Repair and maintenance
185
161
Other expenses
685
624
5,558
The movement in work in progress and finished products
(increase of €29 million, excluding revaluations and changes in the consolidation) is included in the appropriate
component of production costs, i.e. raw materials, packaging materials, excise duties and, with regard to the fixed
cost element of stocks, other expenses.
59
5,089
2001*
2002
Staf f co sts
Salaries and wages
1,069
994
Pension costs
111
41
Other social security costs
275
207
Other staff costs
193
187
1,648
1,429
–6
– 12
1,642
1,417
Staff costs capitalised in connection with
production of tangible fixed assets for use
by the group
Other staff costs includes amounts added to other
provisions in respect of reorganisations.
Number of employees
The average number of employees was:
Netherlands
Rest of Europe
Western Hemisphere
Africa/Middle East
Asia/Pacific
5,527
5,620
22,440
20,646
1,451
839
10,462
6,700
1,377
1,308
Heineken N.V. and fully consolidated
41,257
Rest of Europe
Africa/Middle East
Asia/Pacific
2,877
35,113
947
631
537
3,472
3,428
Proportionally consolidated participating interests
6,980
4,912
48,237
40,025
Heineken N.V. and consolidated
Amortisation/depreciation and value
adjustments
Depreciation of tangible fixed assets
Other value adjustments to tangible fixed assets
Amortisation of intangible fixed assets
Value adjustments to other assets
Other value adjustments to tangible fixed assets include
the balance of reductions in the book values of production assets to their net realisable value and reversals
of exceptional losses from impairment of these assets.
The value adjustments to other assets relate mainly to
provisions for stocks of finished products and spares held
by operating companies.
60
476
444
5
21
10
4
491
469
38
7
529
476
2002
2001
Results of non- consolidated participating
interests
Share in net result of participating interests
carried at net asset value
15
17
33
28
Dividends received from participating interests
carried at cost
48
45
Interest
Interest paid
Interest received on cash deposits etc.
– 146
– 118
37
47
– 109
– 71
– 364
– 327
1,173
1,054
Taxation
The taxation amounts to 31.0% (2001: 31.0%) of the profit before tax, excluding the results of non-consolidated
participating interests.
Taxation
The main components of the taxation charge are:
Profit before taxation excluding the results
of non-consolidated participating interests
Taxation charge at the statutory tax rate in
the Netherlands
Effect of tax rates outside the Netherlands
34.5%
405
35.0%
369
– 0.9%
– 11
– 0.5%
–5
1.7%
20
1.6%
17
Utilisation of tax losses carried forward
– 1.2%
– 14
– 2.6%
– 28
Tax losses not recognised
– 0.1%
–1
1.4%
15
Underprovided in prior years
– 0.8%
–9
– 0.9%
–9
Tax incentives and other differences
– 2.2%
– 26
– 3.0%
– 32
Effective tax burden
31.0%
364
31.0%
327
Non-allowable expenses
61
2002
Tax losses
As at  December , the group
had tax losses totalling € million,
expiring as follows:
2003
20
2004
29
2005
21
2006
12
2007
21
Later than 2007 but not indefinite
31
134
An amount of €22 million of these tax losses has been
recognised as a deferred tax asset and included in
financial fixed assets. Owing to the uncertainty regarding the ability to realise other tax losses, they have
not been recognised.
2002
2001
–
52
Extraordinary result af ter tax
The extraordinary result after tax in 2001 relates to
the book profit of €35.5 million on the disposal of the
2% interest in the Spanish hotel group NH Hoteles SA
and an exceptional cash dividend of €16.3 million
distributed by Whitbread Plc. following the disposal of
its Pubs & Bars Division.
62
Notes to the Consolidated Cash Flow Statement
The consolidated cash flow statement has been drawn up
overdrafts and repayment commitments on long-term
using the indirect method. The various consolidated profit
borrowings in ). The cash flow from investing
and loss account and balance sheet items have been
activities relates to the net amount of investments and
adjusted for changes which have no effect on the receipts
disposals. The net cash position consists of cash in hand
and payments during the year. Working capital comprises
and at bank, securities and bank overdrafts.
stocks, receivables and current liabilities (excluding bank
Provisions
Other non-cash-flow movements
Cash flow movements
with dividends, interest and taxation
Changes in the consolidaton
797
32
–1
51
81
11
– 72
– 136
220
–8
484
– 56
981
1,215
206
– 22
–2
– 49
57
– 42
Cash flow movements
223
165
63
commitments
– 11
Other non-cash-flow movements
borrowings
– 14
Movements in balance sheet items in connection
Repayment
1,024
Working capital
Long-term
of significance for the true and fair view required by law
A declaration of joint and several liability pursuant to the provisions of Section , Part , Book , of the Netherlands
Civil Code has been issued with respect to the legal entities established in the Netherlands marked with a • below.
Fully consolidated participating interests
% interest
• Heineken Nederlands Beheer B.V.
Amsterdam
• Heineken Brouwerijen B.V.
Amsterdam
100.0
100.0
• Heineken Nederland B.V.
Amsterdam
100.0
• Heineken International B.V.
Amsterdam
100.0
• Heineken Technical Services B.V.
Amsterdam
100.0
• Amstel Brouwerij B.V.
Amsterdam
100.0
• Amstel Internationaal B.V.
Amsterdam
100.0
• Vrumona B.V.
Bunnik
100.0
• Invebra Holland B.V.
Amsterdam
100.0
• Brouwerij de Ridder B.V.
Maastricht
100.0
• B.V. Beleggingsmaatschappij Limba
Amsterdam
100.0
• Brand Bierbrouwerij B.V.
Wijlre
100.0
• Beheer- en Exploitatiemaatschappij Brand B.V.
Wijlre
100.0
Sogebra S.A.
Paris (France)
100.0
Heineken España S.A.
Seville (Spain)
97.8
Heineken Italia S.p.A.
Pollein (Italy)
100.0
Athenian Brewery S.A.
.
Grupa Z ywiec S.A.
Athens (Greece)
.
Z ywiec (Poland)
Heineken Ireland Ltd. *
Cork (Ireland)
100.0
Amstel Brewery Hungary Inc.
Komárom (Hungary)
100.0
Heineken Slovensko A.S.
Nitra (Slovakia)
Heineken Switzerland A.G.
Chur (Switzerland)
100.0
Mouterij Albert N.V.
Ruisbroek (Belgium)
100.0
Ibecor S.A.
Brussels (Belgium)
100.0
98.8
61.8
91.6
Affligem Brouwerij BDS N.V.
Opwijk (Belgium)
100.0
Bravo International
St. Petersburg (Russia)
100.0
Dinal LLP
Almaty (Kazakhstan)
Heineken USA Inc.
White Plains (United States)
Antilliaanse Brouwerij N.V.
Willemstad (Netherlands Antilles)
56.8
Commonwealth Brewery Ltd.
Nassau (Bahamas)
53.2
Windward & Leeward Brewery Ltd.
Vieux Fort (St. Lucia)
72.7
Nigerian Breweries Plc.
Lagos (Nigeria)
54.2
51.0
100.0
Al Ahram Beverages Company
Cairo (Egypt)
98.7
Brasseries, Limonaderies et Malteries ‘Bralima’ S.A.R.L.
Kinshasa (R.D. Congo)
94.3
Brasseries et Limonaderies du Rwanda ‘Bralirwa’ S.A.
Kigali (Rwanda)
70.0
Brasseries et Limonaderies du Burundi ‘Brarudi’ S.A.
Bujumbura (Burundi)
59.3
Brasseries de Bourbon S.A.
St. Denis (Réunion)
85.4
Ghana Breweries Ltd.
Kumasi (Ghana)
75.6
Brasseries du Logone S.A.
Moundou (Chad)
100.0
P.T. Multi Bintang Indonesia Tbk.
Jakarta (Indonesia)
84.5
* In accordance with the provisions of Section  of the Republic of Ireland Companies (Amendment) Act , Heineken N.V. has given irrevocable guarantees
for the financial year from  January  to  December  in respect of the liabilities, as referred to in Section (c) of that Act, of the subsidiary companies
Heineken Ireland Limited and Heineken Ireland Sales Limited.
64
Proportionally consolidated participating interests
The companies listed below are proportionally consolidated because control of these companies is exercised jointly
and directly by virtue of an agreement with the other shareholders.
% interest
BrauHolding International AG
Munich (Germany)
49.9
Zagorka Brewery A.D.
Stara Zagora (Bulgaria)
48.0
Ariana Brewery A.D.
Sofia (Bulgaria)
47.5
Pivara Skopje A.D.
Skopje (Macedonia)
27.3
Brasseries du Congo S.A.
Brazzaville (Congo)
50.0
Asia Pacific Breweries (Singapore) Pte. Ltd.
Singapore
42.5
Shanghai Asia Pacific Brewery Co. Ltd.
Shanghai (China)
44.9
Hainan Asia Pacific Brewery Ltd.
Haikou (China)
42.5
SP Holdings Ltd.
Port Moresby (Papua New Guinea)
32.1
Vietnam Brewery Ltd.
Ho Chi Minh City (Vietnam)
25.5
Cambodia Brewery Ltd.
Phnom Penh (Cambodia)
34.0
DB Group Ltd.
Auckland (New Zealand)
32.7
Guinness Anchor Berhad
Petaling Jaya (Malaysia)
10.8
Thai Asia Pacific Brewery Co. Ltd.
Bangkok (Thailand)
14.9
Florida Bebidas S.A.
San José (Costa Rica)
25.0
Non- consolidated participating interests
carried at net a s s et va lue
Other non- consolidated participating
interests ca rrie d a t cos t
Quilmes International (Bermuda) Ltd.
Hamilton (Bermuda)
15.0
Cervejarias Kaiser Brasil S.A.
Rio de Janeiro (Brazil)
20.0
65
Balance Sheet of Heineken N.V.
after proposed appropriation of profit
31 December
2002
31 December
2001
Assets
Fixed assets
2,550
2,390
Current assets
Receivables
Cash
2
12
216
585
218
597
2,768
2,987
Equity and liabilities
Issued share capital
General reserve
784
784
1,759
1,974
2,543
2,758
Liabilities
Current liabilities
66
68
68
157
161
225
229
2,768
2,987
Profit and Loss Account of Heineken N.V.
2002
2001
Net profit of group companies
792
736
Other revenues and expenses
3
31
Net profit according to the consolidated
profit and loss account
67
795
767
Notes to the Balance Sheet and Profit and Loss Account
of Heineken N.V. for 2002
General
Sh ares
The amounts disclosed in the notes are in millions of
As at  December , the members of the Executive
euros unless otherwise indicated. The aggregate amounts
Board did not hold any of the company’s shares, convert-
referred to in Section , subsection , Part , Book ,
ible bonds or option rights. One of the Executive Board
of the Netherlands Civil Code, in respect of the remunera-
members held  shares of Heineken Holding N.V. as at
tion, pensions etc. of existing and former members of
 December .
the Executive Board and of existing and former members
of the Supervisory Board disbursed by the company were
Superv isory Board
as follows:
As at  December , the Supervisory Board members
did not hold any of the company’s shares, convertible
2002
2001
Executive Board members
7.5
5.5
Supervisory Board members
0.3
0.3
bonds or option rights. Two Supervisory Board members
together held , shares of Heineken Holding N.V. as at
 December .
The individual members of the Supervisory Board received
the following remuneration:
Remuneration
The remuneration of the members of the Executive Board
2002
in thousands of euros
2001
comprises a fixed component and a variable component,
made up of an annual profit-sharing bonus and a long-term
J.M. de Jong1
31
–
bonus. The profit-sharing bonus is determined individually
M. Das
38
29
by the Supervisory Board. The long-term bonus is linked to
J. Loudon
38
29
the issue of bonus shares or recapitalisation by Heineken
H. de Ruiter
38
29
N.V., which, in the past, has occurred on average once
M.R. de Carvalho
38
29
every three years.
A.H.J. Risseeuw
38
21
21
J.M. Hessels
38
Pensions
C.J.A. van Lede 1
26
–
The pensions of the Executive Board members are admin-
R. Hazelhoff 2
14
34
istered by the Heineken Pension Fund. In , €,
A. Maas 2
12
29
(: €,) was charged to the company in respect
L. van Vollenhoven
12
29
2
of pension contributions.
Executive Board remuneration
Fixed
in thousands of euros
1
Appointed 25 april 2002
2
Retired 25 april 2002
Annual
Long-term
Pension
bonus
bonus
plan
Total
2002
2001
2002
2001
2002
2001
2002
2001
2002
2001
A. Ruys
506
432
426
367
–
681
–
–
932
1,480
M.J. Bolland
358
239
277
185
–
–
–
–
635
424
J.F.M.L. van Boxmeer
358
239
277
185
–
–
–
–
635
424
D.R. Hooft Graafland 1
239
–
185
–
–
–
–
–
424
–
S.W.W. Lubsen 2
358
358
412
412
–
514
1,856
–
2,626
1,284
K. Vuursteen 3
181
543
152
455
1,000
845
804
–
2,137
1,843
1
Remuneration since appointment as member of the Executive Board on 2 May 2002
2
Retired on 31 December 2002
3
Retired on 25 April 2002
68
Notes to the Balance Sheet and Profit and Loss Account of Heineken N.V. for 2002
Accounting policies for the valuation of
ing policies and the price paid on acquisition of group
assets and liabilities and for the determination
companies, is taken to the general reserve. Positive differ-
of results
ences are credited to the revaluation reserve. Any differ-
Shares in group companies are carried at net asset value
ence in value of a group company between the beginning
calculated in accordance with the accounting policies
and end of the year which does not relate to changes in
for the valuation of assets and liabilities stated on page
the paid-up share capital, results and dividends of that
 et seq. Amounts receivable from group companies are
company is credited or debited to the revaluation reserve
stated at face value. Also stated at face value are other
or, if this is insufficient, to the general reserve.
amounts receivable, cash, long-term borrowings and cur-
The profit and loss account has been prepared in accor-
rent liabilities. Goodwill, being the difference between the
dance with the accounting policies stated on page .
value as calculated in accordance with the stated account-
Group companies
Total
Shares
Receivables
1,676
2,390
714
Revaluation
– 853
– 853
–
792
792
–
– 362
– 362
–
583
–
583
2,550
291
2,259
Net profit of group companies
Dividend payments by group companies
Other movements
2002
2001
2
12
216
585
784
711
–
73
784
784
Receivables
Amounts receivable
The amounts receivable fall due within one year.
Cash
Short-term cash deposits
Issued capital
Recapitalisation charged to the general reserve
The issued share capital comprises 391,979,675 shares
of €2.00 nominal value and the authorised share capital
is €2.5 billion.
69
Notes to the Balance Sheet and Profit and Loss Account of Heineken N.V. for 2002
2002
2001
General reserve
1,974
1,685
Revaluation
– 853
– 248
795
767
– 157
– 157
–
– 73
Net profit for the year
Dividend for the year
Recapitalisation
1,759
1,974
Total
More than 5 years
Total
More than 5 years
68
–
68
–
68
–
68
–
Amounts falling due after more than one year
relate to:
Private loan, in EUR, interest rate 5.84%,
redeemable 2 June 2006
Current liabilities
Amounts falling due within one year relate to:
Taxation
59
63
Dividend
94
94
4
4
Other creditors
157
Off-balance-sheet commitments
Third parties
Group companies
Third parties
Group companies
–
780
–
880
Declarations of joint and several liability
70
161
Supervisory Board
Executive Board
De Jong
de Carvalho
Ruys
Das
Risseeuw
Bolland
Loudon
Hessels
Van Boxmeer
De Ruiter
Van Lede
Hooft Graafland
Other information
Audito rs’ Re p ort
Introduction
supporting the amounts and disclosures in the financial
We have audited the  financial statements of
statements. An audit also includes assessing the account-
Heineken N.V., Amsterdam, as included on pages  to 
ing principles used and significant estimates made by
of this report. The financial statements are the responsi-
management, as well as evaluating the overall financial
bility of the company’s management. Our responsibility is
statement presentation. We believe that our audit pro-
to express an opinion on these financial statements based
vides a reasonable basis for our opinion.
on our audit.
Opinion
Scope
In our opinion, the financial statements give a true and
We conducted our audit in accordance with auditing
fair view of the financial position of the company as
standards relating generally accepted in the Netherlands.
at  December  and of the result for the year then
Those standards require that we plan and perform the
ended in accordance with accounting principles generally
audit to obtain reasonable assurance about whether the
accepted in the Netherlands and comply with the financial
financial statements are free of material misstatement.
reporting requirements included in Part , Book , of the
An audit includes examining, on a test basis, evidence
Netherlands Civil Code.
KPMG Accountants N.V.
Appropriation of Profit
Authorised Capital
Article , paragraph , of the Articles of Association
The company’s authorised capital amounts to €. billion.
stipulates:
‘From the net profit there shall first be distributed, if
Events af ter Balance Sheet Date
possible, six per cent dividend on the issued part of the
On  January , Heineken signed an agreement for
authorised share capital. The amount then remaining shall
the acquisition of a % interest in a joint venture which
be at the disposal of the General Meeting of Shareholders.’
has a controlling interest of % in the Chilean brewery
It is proposed to appropriate € million of the net
CCU. Heineken simultaneously reached agreement with
profit for payment of dividend and to add € million to
Quilmes on the sale of the % interest in the Argentinian
the general reserve.
brewing group Quilmes International (Bermuda) Ltd.,
realising at net non-recuring gain of € million. The trans-
Special Rights pursuant to the Articles
actions in Chile and Argentina will involve a net investment
of Association
of € million.
Article , paragraph , of the Articles of Association reads:
On the same date, Heineken reached heads of agreement
‘The appointment of the members of the Executive Board
on the acquisition of a % interest in the Croatian brewer
and of the Supervisory Board shall be made by the General
Karlovacka Pivovara.
Meeting of Shareholders from a binding nomination of
at least two persons to be drawn up for each appointment
by the Supervisory Board.’
Heineken N.V. is not a ‘structuurvennootschap’ within
the meaning of Sections – of the Netherlands Civil
Code. Heineken Holding N.V., a company listed on
Euronext Amsterdam, holds .% of the shares of
Heineken N.V.
71
50
50
40
40
37.20
60
40
40
40
60
30
30
20
20
10
10
0
0
27.65
30
32
32
35
25
25
16
15
20
20
16
20
20
10
share price range
closing price
19
9
19 3
9
19 4
9
19 5
9
19 6
9
19 7
9
19 8
9
20 9
00
20
0
20 1
02
19
9
19 3
94
19
9
19 5
9
19 6
9
19 7
9
19 8
9
20 9
0
20 0
0
20 1
02
0
19
9
19 3
9
19 4
9
19 5
9
19 6
9
19 7
9
19 8
9
20 9
0
20 0
0
20 1
02
5
share price range
closing price
Dividend per share
Heineken N.V. share price
Heineken Holding N.V. share price
in euro cents
in euros
in euros
after restatement for recapitalisation
Euronext Amsterdam
Euronext Amsterdam
and share split
and share split
and share split
Average trade in 2002:
Average trade in 2002:
841,064 shares per day
137,473 shares per day
72
Heineken N.V.
Share capital
The shares and options of Heineken N.V. are traded on
On  December , the following numbers of shares
Euronext Amsterdam, where the company is included
were in issue:
in the main AEX index. In , the average daily volume
of trade was , shares. The shares are also listed
,, A shares of €. nominal value
,, B shares of €. nominal value
on Euronext Brussels and on the Luxembourg Bourse.
 priority shares of €. nominal value
Heineken N.V. is not a ‘structuurvennootschap’ within
The B shares confer the same rights as the A shares.
the meaning of the Netherlands Civil Code. Consequently,
At a closing price of €. the market capitalisation
decisions on all important matters are taken by the
of Heineken Holding N.V. on balance sheet date was
General Meeting of Shareholders.
€. billion.
Market capitalisation
Rules concerning insider dealing
On  December , there were ,, shares of
Within Heineken Holding N.V. there are established rules
€. nominal value in issue. At a closing price of €.,
governing the disclosure of transactions in shares of
the market capitalisation of Heineken N.V. on balance
Heineken N.V. and Heineken Holding N.V. that are applica-
sheet date was €. billion
ble to the members of the Management Board and to a
number of permanent advisers.
Rules concerning insider dealing
Within Heineken N.V. there are established rules governing
Major Holdings in Listed Companies Disclosure Act
the disclosure of transactions in shares of Heineken N.V.
Pursuant to the Major Holdings in Listed Companies
and Heineken Holding N.V. that are applicable to the mem-
Disclosure Act, l’Arche Holding S.A., Sion, Switzerland,
bers of the Supervisory Board and the Executive Board,
has disclosed an interest of .% and Greenfee B.V.
to other managers and staff who might be in possession of
has disclosed an interest of .% in Heineken Holding N.V.
price-sensitive information and to outside consultants.
Financial calendar in  for both
Major Holdings in Listed Companies Disclosure Act
Heineken N.V. and Heineken Holding N.V.
Pursuant to the Major Holdings in Listed Companies
Announcement of  figures
 February
Disclosure Act, Heineken Holding N.V., Amsterdam,
Publication of annual report
 March
has disclosed an interest of .% in Heineken N.V.
Annual General Meeting of
Heineken Holding N.V.
Quotation ex-final dividend
The A shares of Heineken Holding N.V. are traded on
Final dividend payable
Euronext Amsterdam. Options on A shares are traded on
Announcement of half-year results
Optiebeurs Euronext.Liffe. In , the average daily
Quotation ex-interim dividend
volume of trade was , shares. Heineken Holding N.V.
Interim dividend payable
Shareholders, Amsterdam
 April
 April
 May
 September
 September
 September
is not a ‘structuurvennootschap’ within the meaning of
the Netherlands Civil Code. Consequently, decisions on all
Contacting Heineken N.V.
important matters are taken by the General Meeting of
and Heineken Holding N.V.
Shareholders.
Further information on Heineken N.V. is obtainable from
the Corporate Communication and/or Investor Relations
Dividend policy
Department, telephone +  ,
As provided by Article  of the Articles of Association,
or by e-mail: [email protected].
the shareholders of Heineken Holding N.V. are paid the
Further information on Heineken Holding N.V. is obtainable
same dividend as shareholders of Heineken N.V.
by: telephone +    , or fax +    .
Information is also obtainable from the Investor Relations
Department of Heineken N.V.
The website www.heinekeninternational.com also
carries further information about both Heineken N.V.
and Heineken Holding N.V.
S U P P L E M E N TA R Y I N F O R M AT I O N
73
Historical Summary
2002
2001
1999
1998
1997
1996
1995
1994
1993
1992
10,293
9,333
8,107
7,148
6,272
6,131
5,531
4,603
4,422
4,011
1,282
1,125
921
799
659
546
459
457
406
362
as % of net turnover
12.5
12.1
11.4
11.2
10.5
8.9
8.3
9.9
9.2
9.0
as % of total assets
16.4
15.6
14.6
13.3
12.4
10.7
9.5
10.4
10.0
9.8
Interest cover ratio
12.2
16.5
14.8
20.8
63.1
46.9
40.9
–
–
342.7
Net profit including extraordinary results
795
767
621
516
445
345
297
301
300
236
Turnover and profit in millions of euros
Net turnover
Operating profit
Net profit*
as % of shareholders’ equity
795
715
621
516
445
345
297
301
274
236
31.3
25.9
25.9
19.7
19.4
14.9
14.5
14.0
13.9
13.1
157
157
125
125
100
80
80
80
64
64
19.7
22.0
20.1
24.2
22.4
23.1
26.8
26.4
23.3
27.1
Increase in share capital
–
73
–
–
142
–
–
114
–
–
Cash payment
–
–
–
–
16
–
–
13
–
–
Distribution from reserves
–
73
–
–
158
–
–
127
–
–
Percentage increase
–
10
–
–
25
–
–
25
–
–
Cash flow from operating activities*
3.02
2.97
2.64
2.39
2.25
1.92
1.38
1.63
1.79
1.43
Net profit*
2.03
1.82
1.58
1.32
1.14
0.88
0.76
0.77
0.70
0.60
Dividend
0.40
0.40
0.32
0.32
0.25
0.20
0.20
0.20
0.16
0.16
6.49
7.04
6.11
6.68
5.87
5.91
5.23
5.48
5.04
4.60
Bonus shares (nominal value)
–
0.23
–
–
0.57
–
–
0.57
–
–
Cash payment
–
–
–
–
0.06
–
–
0.06
–
–
1,184
1,165
1,035
935
882
753
539
640
703
562
187
168
160
112
114
94
93
93
77
72
Dividend
as % of net profit*
Bonus shares in millions of euros
Per share of € 2.00 in euros
Cash flow statement in millions of euros
Dividend
Investments
1,973
783
1,503
527
728
439
840
344
334
279
Financing
– 427
– 34
335
– 13
80
36
111
– 70
– 179
36
Net cash flow
– 549
175
– 293
283
120
255
– 283
133
113
247
* Excluding extraordinary result
74
Historical Summery
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
Financing in millions of euros
784
784
711
711
711
569
569
569
455
455
Reserves
1,759
1,974
1,685
1,907
1,588
1,747
1,479
1,579
1,521
1,348
2,543
2,758
2,396
2,618
2,299
2,316
2,048
2,148
1,976
1,803
393
381
124
248
256
182
186
157
160
108
2,936
3,139
2,520
2,866
2,555
2,498
2,234
2,305
2,136
1,911
981
1,024
976
770
733
769
734
637
619
581
Share capital
Minority interests
Group equity
Provisions
1,215
797
875
490
522
412
359
192
228
210
Current liabilities
2,649
2,235
1,892
1,860
1,460
1,384
1,462
1,187
1,010
929
Liabilities
3,864
3,032
2,767
2,350
1,982
1,796
1,821
1,379
1,238
1,139
Total equity and liabilities
7,781
7,195
6,263
5,986
5,270
5,063
4,798
4,321
3,993
3,631
0.61
0.77
0.67
0.92
0.94
0.97
0.87
1.14
1.15
1.11
Group equity/borrowed capital
Employ ment of capital in millions of euros
Fixed assets
39
13
–
–
–
–
–
–
–
–
4,094
3,592
3,250
2,964
2,605
2,521
2,452
2,086
2,076
1,921
835
531
615
422
490
429
380
335
293
245
4,968
4,136
3,865
3,386
3,095
2,950
2,832
2,421
2,369
2,166
765
692
550
490
452
466
447
360
312
313
1,270
1,192
1,024
903
775
799
771
563
522
441
778
1,175
824
1,207
948
848
739
977
790
711
Current assets
2,813
3,059
2,398
2,600
2,175
2,113
1,957
1,900
1,624
1,465
Total assets
7,781
7,195
6,263
5,986
5,270
5,063
4,789
4,321
3,993
3,631
Group equity/fixed assets
0.59
0.76
0.65
0.85
0.83
0.85
0.79
0.95
0.90
0.88
Current assets/current liabilities
1.06
1.37
1.27
1.40
1.49
1.53
1.34
1.60
1.61
1.58
Stocks
Receivables
Cash and securities
75
As at 31 December 2002
Export offices are not shown
Europe
Country
Company
Location
Brands
Belgium
Affligem Brouwerij BDS (100%)
Opwijk
Affligem, Opale
Bulgaria
Zagorka (48.0%)
Stara Zagora
Zagorka, Amstel
Bulgaria
Ariana Brewery (47.5%)
Sofia
Ariana
France
Sogebra (100%)
Marseilles, Mons-en-Baroeul,
Heineken, Amstel, Buckler, Pelforth, Murphy’s Irish Stout,
Schiltigheim, St. Omer
“33“ Export, Fischer, Kingston, Desperados, Adelscott,
St. Omer, Kriska, Dorreleï
Germany
BrauHolding International (49.9%)
Munich, Rosenheim
Paulaner, Hacker- Pschorr
Kulmbach, Plauen, Chemnitz
Kulmbacher, Thurn und Taxis, Auerbräu, Mönchshof, Kapuziner,
EKU, Sternqueel, Braustolz
Greece
Athenian Brewery (98.8%)
Athens, Patras, Thessaloniki
Heineken, Amstel, Buckler, Murphy’s Irish Stout, Alfa
Hungary
Amstel Brewery Hungary (100%)
Komárom
Heineken, Amstel, Buckler, Talléros, Fregatt, Zlatý Bažant
Ireland
Murphy Brewery Ireland (100%)
Cork
Heineken, Amstel, Murphy’s Irish Stout, Buckler
Italy
Heineken Italia (100%)
Aosta, Bergamo, Cagliari,
Heineken, Amstel, Murphy’s Irish Stout, Buckler, Dreher,
Massafra, Messina, Pedavena
Birra Messina, McFarland, Sans Souci, Ichnusa, Birra Moretti,
Classica von Wunster, Prinz
Kazakhstan
Dinal LLP (51%)
Almaty
Tian Shan, Amstel
Macedonia
Pivara Skopje (27.3%)
Skopje
Skopsco, Star Lisec
Netherlands
Heineken Nederland (100%)
’s-Hertogenbosch, Zoeterwoude
Heineken, Amstel, Kylian, Lingen’s Blond, Murphy’s Irish Red
Netherlands
Brand Bierbrouwerij (100%)
Wijlre
Brand
Netherlands
Brouwerij De Ridder (100%)
Maastricht
Ridder, Wieckse Witte, Vos
Poland
.
Grupa Z ywiec (61.8%)
.
.
Z ywiec, Elblag, Warka, Lezajsk,
.
.
Heineken, Z ywiec, Warka, Lezajsk, Specjal, Tatra
Cieszyn, Braniewo
Russia
Bravo International (100%)
St. Petersburg
Botchkarev, Ochota, Löwenbräu
Slovak Republic
Heineken Slovensko (91.6%)
Hurbanovo, Nitra
Zlatý Bažant, Amstel, Kelt, Corgon, Martiner, Gemer
Spain
Heineken España (97.8%)
Madrid, Valencia, Seville, Jaen, Arano
Heineken, Amstel Aguila, Buckler, Murphy’s Irish Stout,
Guinness, Kaliber, Legado de Yuste
Sweden
Spendrups (licence)
Grängesberg
Heineken
Switzerland
Heineken Switzerland (100%)
Chur
Heineken, Amstel, Murphy’s Irish Stout, Calanda, Haldengut
United Kingdom
Whitbread (licence)
Samlesbury
Heineken, Murphy’s Irish Stout
United Kingdom
Bulmers (licence)
Trowbridge
Amstel
76
Western Hemisphere
Country
Company
Location
Brands
Argentina
Quilmes International (15%)
Buenos Aires, Corrientes, Mendoza,
Heineken, Quilmes, Andes, Norte, Bieckert,
San Miguel de Tucuman, Zárate
Palermo, Liberty, Iguana
Bahamas
Commonwealth Brewery (53.2%)
Nassau
Heineken, Kalik, Guinness, Vita Malta
Bolivia
Cochabamba, Santa Cruz, La Paz
Ducal, Taquina, Imperial, Paceña
Brazil
Cervejarias Kaiser Brasil S.A. (20%)
Feira de Santana, Gravatai,
Heineken, Kaiser, Santa Cerva, Bavaria, Summer, Xingu
Jacarei, Ponta Grossa, Queimados,
Pacatuba, Araraguara, Manous, Cuiabá,
Ribeirã, Preto
Chile
Santiago
Heineken, Becker, Baltica
Costa Rica
Cerveceria Costa Rica (25%)
San José
Heineken, Imperial, Pilsen, Bavaria, Rock Ice
Dominican Republic Cerveceria Nacional Dominicana (9.3%)
Santo Domingo
Heineken, Presidente
Haiti
Brasserie Nationale d’Haïti (22.5%)
Port-au-Prince
Prestige, Guinness, Malta
Jamaica
Desnoes & Geddes (26.3%)
Kingston
Heineken, Red Stripe, Dragon Stout, Guinness
Martinique
Brasserie Lorraine (83.1%)
Lamentin
Lorraine, Porter, Malta
Willemstad
Amstel, Amstel Bright, Coral, Malta
Managua
Victoria, Tona
Netherlands Antilles Antilliaanse Brouwerij (56.3%)
Nicaragua
Compania Cervecera
Centroamericano S.A. (8%)
Panama
Cervecerias Barú-Panama (74.5%)
Panama City, David
Panama, Soberana, Cristal, Guinness
Paraguay
Ypané
Bremen, Pilsen, Baviera, Quilmes, Dorada, Joia
St. Lucia
Windward & Leeward Brewery (73.9%)
Vieux-Fort
Heineken, Piton, Guinness
Surinam
Surinaamse Brouwerij (76.5%)
Paramaribo
Parbo
Uruguay
Montevideo
Heineken, Pilsen, Zillertal
Affiliated company (non-consolidated)
77
Africa/Middle East
Country
Company
Location
Brands
Angola
Nocal (27.1%)
Luanda
Nocal, Primus
Angola
EKA (46%)
Dondo
EKA
Burundi
Brarudi (59.3%)
Bujumbura, Gitega
Amstel, Primus, Dynamalt
Cameroon
Brasseries du Cameroun (8.8%)
Bafoussam, Douala, Garoua, Yaoundé
Amstel, Mützig
Chad
Brasseries du Logone (100%)
Moundou
Gala, Chari, Maltina
Congo
Brasseries du Congo (50%)
Brazzaville, Pointe Noire
Mützig, Primus, Guinness, Ngok
Democratic
Bralima (95%)
Boma, Bukavu, Kinshasa, Kisangani,
Amstel, Primus, Mützig, Guinness, Turboking
Republic of Congo
Mbandaka, Lubumbashi
Egypt
Al Ahram Beverages Company (98.7%)
El Obour, Sharka, Badr, Gianarlis
Stella, Fayrouz, Birell, Sakara
Ghana
Ghana Breweries (75.6%)
Kumasi, Accra
Amstel Malta, Star, Gulder, ABC Golden Lager,
ABC Stout
Israel
Tempo Beer Industries (17.8%)
Netanya
Maccabee, Gold Star, Nesher, Malt Star
Jordan
General Investment (10.8%)
Zerka
Amstel
Lebanon
Almaza (80.8%)
Beirut
Almaza
Morocco
Brasseries du Maroc (2.2%)
Casablanca, Fès, Tangiers
Heineken, Amstel
Nigeria
Nigerian Breweries (54.2%)
Aba, Enugu, Ibadan, Kaduna, Lagos
Amstel Malta, Maltina, Star, Gulder, Legend
Nigeria
Consolidated Breweries (24.8%)
Jjebu Ode, Owe Omamma
“33“ Export, Hi-malt
Réunion
Brasseries de Bourbon (85.4%)
Saint Denis
Bourbon, Dynamalt, 974
Rwanda
Bralirwa (70%)
Gisenyi, Kigali
Primus, Mützig, Guinness
Sierra Leone
Sierra Leone Brewery (42.5%)
Freetown
Star, Guinness, Maltina
South Africa
South African Breweries-Miller (licence)
Cape Town, Durban, Johannesburg
Amstel, Heineken
78
Asia/Pacific
Country
Company
Location
Brands
Cambodia
Cambodia Brewery (34%)
Phnom Penh
Tiger, Anchor, Gold Crown, ABC Stout
China
Shanghai Asia Pacific (44.9%)
Shanghai
Tiger, Reeb
China
Hainan Asia Pacific (42.5%)
Haikou
Tiger, Anchor, Aoke
Indonesia
Multi Bintang Indonesia (84.5%)
Tangerang, Sampang Agung
Bintang, Guinness
Japan
Kirin (licence)
Tokyo
Heineken
Malaysia
Guinness Anchor Berhad (10.8%)
Kuala Lumpur
Heineken, Tiger, Guinness, Anchor Ice, Baron’s, KilKenny
New Caledonia
Grande Brasserie de Nouvelle
Noumea
Number One, Havannah
Greymouth, Mangatainoka,
Heineken, DB Draft, Murphy’s Irish Stout, Export Gold,
Otahuhu, Timaru
Export Dry, Tui, Monteith, Amstel
Calédonie (87.3%)
New Zealand
DB Group (32.7%)
Papua New Guinea
South Pacific Brewery (32.1%)
Port Moresby, Lae
SP Lager, South Pacific Export Lager, Niugini Ice
Singapore
Asia Pacific Breweries (42.5%)
Singapore
Heineken, Tiger, Anchor, ABC Stout, Baron’s
Tahiti
Brasserie de Tahiti (licence)
Papeete
Heineken
Thailand
Thai Asia Pacific Brewery (14.9%)
Bangkok
Heineken
Vietnam
Vietnam Brewery (25.5%)
Ho Chi Minh City
Heineken, Tiger, Bivina
Vietnam
Hatay Brewery (27.7%)
Hatay, under construction
Affiliated company (non-consolidated)
79
In France last year, Heineken
won the prestigious French
market-tested a new bottle for
Oscar d’Emballage for innova-
the upper end of the on-trade
tive packaging. Heineken plans
segment. The appeal of the
to launch the new aluminium
all-aluminium bottle lies in a
bottle in around  more
creative mix of design and
markets in , including the
material. Consumer reactions
United States, Italy, Germany,
in up-market clubs in the major
Spain, the Netherlands and
cities have been extremely
Hong Kong.
positive, and the new bottle
> Aluminium bottle Cool and exclusive
Colophon
A Heineken N.V. publication
Heineken N.V.
Tweede Weteringplantsoen 21
1017 ZD Amsterdam
P.O. Box 28
1000 AA Amsterdam
Netherlands
telephone +31 20 523 92 39
fax
+31 20 626 35 03
Copies of this annual report
and further information are obtainable
from the Corporate Communication Department,
telephone +31 20 523 92 39
or via www.heinekeninternational.com
Translation
Mac Bay Consultants
Graphic design
and electronic publishing
Design Studio Hans Kentie BNO
Colour separations
UnitedGraphics
Printing
Boom Planeta
While the authors of this publication have as far as possible
obtained the permission of copyright holders where required,
any organisations or individuals considering that their
copyright has been infringed should contact Heineken’s
Corporate Communication Department

Annual Report 2002

Transcription

Similar documents

It`s about beer: Bayou Teche Brewing group

Headlines

Supervisory Board

December 2013 Volume III Issue IV

Fall - Origlio Beverage

2007 Annual Report

Get the Event Guide - Cheltenham Beer Week

458-02-1453 - Texas Alcoholic Beverage Commission

Wake Up Call Sell Sheet.NEW - Grand Teton Brewing Company

Jul/Aug 2015 - Hofbräuhaus Chicago

Red Stripe AR 2006 - Jamaica Stock Exchange