Definitions of terms and phrases used in this report
BEIA
Before exceptional items and amortisation of brands.
CAPEX
Capital expenditure on property, plant and equipment.
Cash conversion ratio
Free operating cash flow/Net profit (beia) before deduction of minority interests.
Depletions
Sales by distributors to the retail trade.
Dividend pay out
Dividend as percentage of net profit.
Earnings per share
Net profit divided by the weighted average number of shares – basic – during the year.
EBIT
Earnings before interest and taxes and net finance expenses.
EBITDA
Earnings before interest and taxes and net finance expenses before depreciation and amortisation.
Effective tax rate
Taxable profit adjusted for share of profit of associates, dividend income and impairments of other investments.
Fit2Fight
Cost saving programme aimed at reducing the fixed cost base versus 2005 by €450 million by 2008.
Fixed costs ratio
Fixed costs under Fit2Fight as a per centage of revenue.
Free operating cash flow
This represents the total of cash flow from operating activities, and cash flow from operational investing activities.
Gearing
Net debt/shareholders’ equity.
Net debt
Non-current and current interest-bearing loans and borrowings and bank overdrafts less securities and cash.
Net interest cover
EBITDA/Net interest expenses.
Net profit
Profit after deduction of minority interests (profit attributable to equity holders of the Company).
Organic growth
Growth excluding the effect of foreign exchange rate movements, consolidation changes, exceptional items, amortisation of brands and changes in accounting policies.
Organic volume growth
Increase in consolidated volume, excluding the effect of the first time consolidation of acquisitions.
Profit
Total profit of the group before deduction of minority interests.
®
All brand names mentioned in this report, including those brand names not marked by an ®, represent registered trade marks and are legally protected.
Region
A region is defined as Heineken’s managerial classification of countries in geographical units.
Revenue
Net realised sales proceeds in Euros.
Top-line growth
Growth in net revenue.
Volume
Amstel® volume
The volume of the Amstel brand.
Consolidated beer volume
100 per cent of beer volume produced and sold by fully consolidated companies and a share of beer volume produced and sold by proportionately consolidated joint- venture companies.
Group beer volume
The part of the total group volume that relates to beer.
Heineken® volume
The volume of the Heineken brand.
Heineken® volume in Premium segment
The groupvolume of the Heineken brand in the premium segment (Heineken volume in the Netherlands is excluded).
Total group volume
100 per cent of beer, soft drinks and other beverages volume produced and sold by fully consolidated companies and by proportionately consolidated joint-venture companies as well as the volume of Heineken’s brands produced and sold under licence by third parties.
