22. Total equity
| In millions of EUR | Share capital | Trans- lation reserve | Other legal reserves | Hedging reserve | Fair value reserve | Reserve for own shares | Retained earnings | Equity attribu- table to equity holders of the Company | Minority interests | Total equity |
| Balance at 1 January 2005 | 784 | 5 | 349 | – | – | – | 2,118 | 3,256 | 477 | 3,733 |
| Total recognised income and expense 6 | – | 143 | 25 | (21) | 49 | – | (48) | 148 | 58 | 206 |
| Profit | – | – | 80 | – | – | – | 681 | 761 | 108 | 869 |
| Transfer to retained earnings | – | – | (62) | – | – | – | 62 | – | – | – |
| Dividends to shareholders | – | – | – | – | – | – | (196) | (196) | (86) | (282) |
| Purchase minority shares | – | – | – | – | – | – | – | – | (1) | (1) |
| Changes in consolidation | – | – | – | – | – | – | – | – | (11) | (11) |
| Balance at 31 December 2005 | 784 | 148 | 392 | (21) | 49 | – | 2,617 | 3,969 | 545 | 4,514 |
| Balance at 1 January 2006 | 784 | 148 | 392 | (21) | 49 | – | 2,617 | 3,969 | 545 | 4,514 |
| Total recognised income and expense | – | (52) | (6) | 49 | 48 | – | (4) | 35 | (31) | 4 |
| Profit | – | – | 110 | – | – | – | 1,101 | 1,211 | 134 | 1,345 |
| Transfer to retained earnings | – | – | (37) | – | – | – | 37 | – | – | – |
| Dividends to shareholders | – | – | – | – | – | – | (196) | (196) | (101) | (297) |
| Purchase minority shares | – | – | – | – | – | – | – | – | (30) | (30) |
| Purchase own shares | – | – | – | – | – | (14) | – | (14) | – | (14) |
| Shared based payments | – | – | – | – | – | – | 4 | 4 | – | 4 |
| Changes in consolidation | – | – | – | – | – | – | – | – | (6) | (6) |
| Balance at 31 December 2006 | 784 | 96 | 459 | 28 | 97 | (14) | 3,559 | 5,009 | 511 | 5,520 |
6 Included is the effect of the change in accounting policy as of 1 January 2005 due to the application of IAS 32/39 amounting to €44 million.
Share capital
| Ordinary shares | ||
| In millions of EUR | 2006 | 2005 |
| On issue at 1 January | 784 | 784 |
| Issued for cash | – | – |
| On issue at 31 December | 784 | 784 |
At 31 December 2006 the issued share capital comprised 489,974,594 ordinary shares (2005: 489,974,594). The ordinary shares have a par value of €1.60. All issued shares are fully paid.
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. In respect of the Company’s shares that are held by Heineken (see below), rights are suspended.
Translation reserve
The translation reserve comprises foreign currency differences arising from the translation of the financial statements of foreign operations of the Company (excluding amounts attributable to minority interests).
Other legal reserves
These reserves relate to the share of profit of joint ventures and associates over the distribution of which Heineken does not have control. The movement in these reserves reflects retained profits of joint ventures and associates minus dividends received.
Hedging reserve
This reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments where the hedged transaction has not yet occurred.
Fair vale reserve
This reserve comprises the cumulative net change in the fair value of available-for-sale investments until the investment is derecognised.
Reserve for own shares.
The reserve for the Company’s own shares comprises the cost of the Company’s shares held by Heineken. At 31 December 2006 Heineken held 410,000 of the Company’s shares (2005: nil).
Dividends
The following dividends were declared and paid by Heineken:
| In millions of EUR | 2006 | 2005 |
| Final dividend previous year €0.24 per qualifying ordinary share | 118 | 118 |
| Interim dividend current year €0.16 per qualifying ordinary share | 78 | 78 |
| Total dividend declared and paid | 196 | 196 |
The Company intends to renew its dividend policy which will be applicable to the dividend for the financial year 2006. The proposal is subject to approval at the Annual General Meeting of shareholders of Heineken N.V. in April 2007.
After the balance sheet date the Executive Board proposed the following dividends. The dividends have not been provided for.
| In millions of EUR | 2006 | 2005 |
| €0.60 per qualifying ordinary share (2005: €0.40) | 294 | 196 |
Prior-year adjustments
In 2006, BHI recognised IFRS transitional adjustments, which should have been reflected in the 2004 Heineken IFRS opening balance sheet. The prior year estimation error, with a negative impact of €10 million, is not considered material and is recognized in equity in 2006. Comparatives have not been restated.
