Heineken ENG Financial Statements

Financial Statements
Consolidated
income statement
For the year ended 31 December 2009
In millions of EUR Note 2009 2008
Revenue 5 14,701 14,319
Other income 8 41 32
Raw materials, consumables and services 9 (9,650) (9,548)

Personnel expenses 10 (2,379) (2,415)
Amortisation, depreciation and impairments 11 (1,083) (1,206)
Total expenses (13,112) (13,169)
Results from operating activities 1,630 1,182
Interest income 12 90 91
Interest expenses 12 (633) (469)
Other net finance expenses 12 214 (107)
Net finance expenses (329) (485)
Share of profit of associates and joint ventures
and impairments thereof (net of income tax) 16 127 (102)
Profit before income tax 1,428 595
Income tax expenses 13 (286) (248)
Profit 1,142 347
Attributable to:
Equity holders of the Company (net profit) 1,018 209
Minority interest 124 138
Profit 1,142 347
Weighted average number of shares – basic 23 488,666,607 488,930,340

Weighted average number of shares – diluted 23 489,974,594 489,974,594
Basic earnings per share (EUR ) 23 2.08 0.43
Diluted earnings per share (EUR ) 23 2.08 0.43
Annual Report 2009 – Heineken N.V. 

Consolidated statement
of comprehensive income
Profit 1,142 347
Other comprehensive income:
Foreign currency translation differences
for foreign operations 24 112 (645)
Effective portion of change in fair value of cash flow hedge 24 (90) (105)
Effective portion of cash flow hedges transferred
to the income statement 24 88 (59)
Net change in fair value available-for-sale investments 24 26 (12)
Net change in fair value available-for-sale investments
transferred to the income statement 24 (12) 1
Share of other comprehensive income of associates/
joint ventures 24 22 (3)
Other comprehensive income, net of tax 24 146 (823)
Total comprehensive income 1,288 (476)
Attributable to:
Equity holders of the Company 1,172 (570)
Minority interest 116 94
Total comprehensive income 1,288 (476)
 Annual Report 2009 – Heineken N.V.

of financial position
As at 31 December 2009
In millions of EUR Note 2009 2008*
Assets
Property, plant & equipment 14 6,017 6,314
Intangible assets 15 7,135 7,030*
Investments in associates and joint ventures 1,427 1,145
Other investments 17 568 641
Advances to customers 319 346
Deferred tax assets 18 561 362*
Total non-current assets 16,027 15,838
Inventories 19 1,010 1,246
Trade and other receivables 20 2,310 2,504
Prepayments and accrued income 189 231
Cash and cash equivalents 21 520 698
Assets classified as held for sale 7 109 56
Total current assets 4,153 4,749
Total assets 20,180 20,587
Equity
Share capital 784 784
Reserves 159 (74)
Retained earnings 4,408 3,761
Equity attributable to equity holders of the Company 5,351 4,471
Minority interests 296 281
Total equity 5,647 4,752
Liabilities
Loans and borrowings 25 7,401 9,084
Employee benefits 28 634 688
Provisions 30 356 344
Deferred tax liabilities 18 786 661*
Total non-current liabilities 9,177 10,777
Bank overdrafts 21 156 94
Loans and borrowings 25 1,145 875
Trade and other payables 31 3,696 3,846
Tax liabilities 132 85
Provisions 30 162 158
Liabilities classified as held for sale 7 65 –
Total current liabilities 5,356 5,058
Total liabilities 14,533 15,835
Total equity and liabilities 20,180 20,587
* Comparatives have been adjusted due to the finalisation of the purchase price accounting of the Scottish & Newcastle acquisition (see note 6).
Annual Report 2009 – Heineken N.V. 

of cash flows
Operating activities
Profit 1,142 347
Adjustments for:
Amortisation, depreciation and impairments 11 1,083 1,206
Net interest (income)/expenses 12 543 378
Gain on sale of property, plant & equipment, intangible
assets and subsidiaries, joint ventures and associates 8 (41) (32)
Investment income and share of profit and impairments
of associates and joint ventures (138) 108
Income tax expenses 13 286 248
Other non-cash items 1 74
Cash flow from operations before changes in working
capital and provisions 2,876 2,329
Change in inventories 202 (157)
Change in trade & other receivables 337 (184)
Change in trade and other payables (319) 294
Total change in working capital 220 (47)
Change in provisions and employee benefits (67) (114)
Cash flow from operations 3,029 2,168
Interest paid and received (467) (309)
Dividend received 62 52
Income taxes paid (245) (251)
Cash flow related to interest, dividend and income tax (650) (508)
Cash flow from operating activities 2,379 1,660
 Annual Report 2009 – Heineken N.V.

Investing activities
Proceeds from sale of property, plant & equipment
and intangible assets 180 93
Purchase of property, plant & equipment 14 (678) (1,102)
Purchase of intangible assets 15 (99) (158)
Loans issued to customers and other investments (117) (163)
Repayment on loans to customers 76 220
Cash flow used in operational investing activities (638) (1,110)
Free operating cash flow 1,741 550
Acquisition of subsidiaries and minority interests,
net of cash acquired 6 (84) (3,580)
Acquisition of associates, joint ventures and other investments (116) (202)
Disposal of subsidiaries and minority interests,
net of cash disposed of 6 17 68
Disposal of associates, joint ventures and other investments 34 80
Cash flow used for acquisitions and disposals (149) (3,634)
Cash flow used in investing activities (787) (4,744)
Financing activities
Proceeds from loans and borrowings 25 2,052 6,361
Repayment of loans and borrowings (3,411) (2,532)
Dividends paid (392) (485)
Purchase own shares and shares issued (13) (11)
Other (73) (24)
Cash flow from/(used in) financing activities (1,837) 3,309
Net cash flow (245) 225
Cash and cash equivalents as at 1 January 604 309

Effect of movements in exchange rates 5 70
Cash and cash equivalents as at 31 December 21 364 604
Annual Report 2009 – Heineken N.V. 

of changes in equity
Equity
attributable
Other Reserve to equity
Share Translation Hedging Fair value legal for own Retained holders of Minority Total
In millions of EUR Note capital reserve reserve reserve reserves shares earnings the Company interests equity
Balance as at 1 January 2008 784 7 44 99 571 (29) 3,928 5,404 307 5,711
Other comprehensive income 24 – (602) (166) (11) (44) – 44 (779) (44) (823)
Profit – – – – 142 – 67 209 138 347
Total comprehensive income – (602) (166) (11) 98 – 111 (570) 94 (476)
Transfer to retained earnings – – – – (74) – 74 – – –
Dividends to shareholders – – – – – – (363) (363) (148) (511)
Purchase/reissuance own/minority
shares – – – – – (11) – (11) (7) (18)
Share-based payments – – – – – – 11 11 – 11
Changes in consolidation – – – – – – – – 35 35
Balance as at 31 December 2008 784 (595) (122) 88 595 (40) 3,761 4,471 281 4,752
Balance as at 1 January 2009 784 (595) (122) 88 595 (40) 3,761 4,471 281 4,752
Other comprehensive income 24 – 144 (2) 12 6 – (6) 154 (8) 146
Profit – – – – 150 – 868 1,018 124 1,142
Total comprehensive income – 144 (2) 12 156 – 862 1,172 116 1,288
Transfer to retained earnings – – – – (75) – 75 – – –
Dividends to shareholders – – – – – – (289) (289) (96) (385)
Purchase/reissuance own/
minority shares – – – – – (2) (11) (13) (2) (15)
Share-based payments – – – – – – 10 10 – 10
Changes in consolidation – – – – – – – – (3) (3)
Balance as at 31 December 2009 784 (451) (124) 100 676 (42) 4,408 5,351 296 5,647
 Annual Report 2009 – Heineken N.V.

Notes to the consolidated

financial statements
1. Reporting entity
Heineken N.V. (the ‘Company’) is a company domiciled in the Netherlands. The address of the Company’s
registered office is Tweede Weteringplantsoen 21, Amsterdam. The consolidated financial statements of the
Company as at and for the year ended 31 December 2009 comprise the Company, its subsidiaries (together
referred to as ‘Heineken’ or the ‘Group’ and individually as ‘Heineken’ entities) and Heineken’s interests in joint
ventures and associates.
A summary of the main subsidiaries, joint ventures and associates is included in note 36 and 16 respectively.
Heineken is primarily involved in brewing and selling of beer.
2. Basis of preparation
(a) Statement of compliance
The consolidated financial statements have been prepared in accordance with International Financial
Reporting Standards (IFRS) as endorsed by the EU and also comply with the financial reporting requirements
included in Part 9 of Book 2 of the Dutch Civil Code.
The Company presents a condensed income statement, using the facility of Article 402 of Part 9, Book 2, of the
Dutch Civil Code.
The consolidated financial statements have been prepared by the Executive Board of the Company and
authorised for issue on 22 February 2010 and will be submitted for adoption to the Annual General Meeting of
Shareholders on 22 April 2010.
(b) Basis of measurement

The consolidated financial statements have been prepared on the historical cost basis except for the following
assets and liabilities that are measured at fair value:
• Available-for-sale investments
• Investments at fair value through profit and loss
• Derivative financial instruments
• Liabilities for equity-settled share-based payment arrangements
• Long-term interest-bearing liabilities on which fair value hedge accounting is applied.
The methods used to measure fair values are discussed further in note 4.
(c) Functional and presentation currency

These consolidated financial statements are presented in euro, which is the Company’s functional currency.
All financial information presented in euro has been rounded to the nearest million unless stated otherwise.
(d) Use of estimates and judgements

The preparation of consolidated financial statements in conformity with IFRS requires management to make
judgements, estimates and assumptions that affect the application of accounting policies and the reported
amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised and in any future periods affected.
Annual Report 2009 – Heineken N.V. 

Notes to the consolidated financial statements
2. Basis of preparation continued

In particular, information about assumptions and estimation uncertainties and critical judgements in applying
accounting policies that have the most significant effect on the amounts recognised in the consolidated
financial statements are described in the following notes:
• Note 6 Acquisitions and disposals of subsidiaries and minority interests

• Note 15 Intangible assets
• Note 16 Investments in associates and joint ventures
• Note 17 Other investments
• Note 18 Deferred tax assets and liabilities
• Note 28 Employee benefits
• Note 29 Share-based payments – Long-Term Incentive Plan
• Note 30 Provisions
• Note 32 Financial risk management and financial instruments
• Note 34 Contingencies.
3. Significant accounting policies

(a) General
The accounting policies set out below have been applied consistently to all periods presented in these
consolidated financial statements and have been applied consistently by Heineken entities.
(b) Change in accounting policies

IAS 23 Borrowing costs
In respect of borrowing costs relating to qualifying assets for which the commencement date for capitalisation
is on or after 1 January 2009, borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying asset, are capitalised as part of the cost of that asset. Previously all borrowing costs
were immediately recognised as an expense. This change in accounting policy was due to the adoption of IAS
23 Revised in accordance with the transitional provisions of that standard; comparative figures have not been
restated. The change in accounting policy had no material impact on assets, profit or earnings per share for the
year ended 31 December 2009.
Amendments to IAS 1 Presentation of financial statements

The revised IAS 1 constitutes a change on the presentation of the consolidated financial statements. The
amendment introduces the statement of changes in equity as primary statement and introduces the term total
comprehensive income, which represents changes in equity during a period other than those changes resulting
from transactions with owners. Heineken provides total comprehensive income in an income statement and
a separate statement of comprehensive income and this has been applied in these consolidated financial
statements as of and for the year ended 31 December 2009. Comparative information has been re-presented in
conformity with the revised standard. Since the amendments to IAS 1 only impacts presentation aspects, there
is no impact on earnings per share.
Amendments to IFRS 7 Financial instruments – Disclosures

The amendment requires enhanced disclosures about fair value measurement and liquidity risk. In particular,
the amendment requires disclosure of fair value measurements by level of a fair value measurement hierarchy.
This change in accounting policy only results in additional disclosures; there is no impact on earnings per
share.
Other standards and interpretations

Other standards and interpretations effective from 1 January 2009 did not have a significant impact on
the Company.
 Annual Report 2009 – Heineken N.V.

(c) Basis of consolidation
(i) Subsidiaries
Subsidiaries are entities controlled by Heineken. Control exists when Heineken has the power, directly or
indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
In assessing control, potential voting rights that currently are exercisable or convertible are taken into account.
The financial statements of subsidiaries are included in the consolidated financial statements from the date that
control commences until the date that control ceases. Accounting policies have been changed where necessary
to ensure consistency with the policies adopted by Heineken.
(ii) Special Purpose Entities (SPEs)

An SPE is consolidated if, based on an evaluation of the substance of its relationship with Heineken and the SPE’s
risks and rewards, Heineken concludes that it controls the SPE. SPEs controlled by Heineken were established
under terms that impose strict limitations on the decision-making powers of the SPE’s management and that
result in Heineken receiving the majority of the benefits related to the SPE’s operations and net assets, being
exposed to the majority of risks incident to the SPE’s activities, and retaining the majority of the residual or
ownership risks related to the SPE or their assets.
(iii) Investments in associates

Investments in associates are those entities in which Heineken has significant influence, but not control, over the
financial and operating policies. Significant influence is presumed to exist when the Group holds between 20
and 50 per cent of the voting power of another entity. The consolidated financial statements include Heineken’s
share of the income and expenses and equity movements of equity-accounted associates, from the date that
significant influence commences until the date that significant influence ceases. When Heineken’s share of
losses exceeds the carrying amount of the associate, the carrying amount is reduced to nil and recognition of
further losses is discontinued except to the extent that Heineken has an obligation or has made a payment on
behalf of the associate.
(iv) Joint ventures

Joint ventures are those entities over whose activities Heineken has joint control, established by contractual
agreement and requiring unanimous consent for strategic financial and operating decisions. The consolidated
financial statements include Heineken’s share of the income and expenses and equity movements of equity-
accounted JVs, from the date that joint control commences until the date that joint control ceases. When
Heineken’s share of losses exceeds the carrying amount of the JV, the carrying amount is reduced to nil and
recognition of further losses is discontinued except to the extent that Heineken has an obligation or has made
a payment on behalf of the JV.
Annual Report 2009 – Heineken N.V. 

3. Significant accounting policies continued

(c) Basis of consolidation continued
(v) Transactions eliminated on consolidation
Intra-Heineken balances and transactions, and any unrealised gains and losses or income and expenses arising
from intra-Heineken transactions, are eliminated in preparing the consolidated financial statements. Unrealised
gains arising from transactions with equity accounted associates and JVs are eliminated against the investment
to the extent of the Heineken’s interest in the investee. Unrealised losses are eliminated in the same way as
unrealised gains, but only to the extent that there is no evidence of impairment.
(d) Foreign currency

(i) Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of Heineken entities
at the exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign
currencies at the balance sheet date are retranslated to the functional currency at the exchange rate at that date.
The foreign currency gain or loss arising on monetary items is the difference between amortised cost in the
functional currency at the beginning of the period, adjusted for effective interest and payments during the period,
and the amortised cost in foreign currency translated at the exchange rate at the end of the reporting period.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are
retranslated to the functional currency at the exchange rate at the date that the fair value was determined.
Foreign currency differences arising on retranslation are recognised in the income statement, except for
differences arising on the retranslation of available-for-sale (equity) investments and foreign currency
differences arising on the retranslation of a financial liability designated as a hedge of a net investment,
which are recognised in other comprehensive income.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at cost remain
translated into the functional currency at historical exchange rates.
(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on
consolidation, are translated to euro at exchange rates at the balance sheet date. The revenue and expenses
of foreign operations are translated to euro at exchange rates approximating the exchange rates ruling at the
dates of the transactions.
Foreign currency differences are recognised in other comprehensive income and are presented within equity
in the translation reserve. When a foreign operation is disposed of, in part or in full, the relevant amount in the
translation reserve is transferred to the income statement. Foreign exchange gains and losses arising from a
monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor
likely in the foreseeable future, are considered to form part of a net investment in a foreign operation and are
recognised in other comprehensive income, and are presented within equity in the translation reserve.
 Annual Report 2009 – Heineken N.V.

The following exchange rates, for most important countries in which Heineken has operations, were used whilst
preparing these consolidated financial statements:
Year-end Average
In EUR 2009 2008 2009 2008
GBP 1.1260 1.0499 1.1224 1.2577
EGP 0.1273 0.1303 0.1292 0.1255
NGN 0.0047 0.0051 0.0048 0.0057
PLN 0.2436 0.2408 0.2311 0.2856
RUB 0.0232 0.0242 0.0227 0.0275
USD 0.6942 0.7185 0.7170 0.6832
(iii) Hedge of net investments in foreign operations

Foreign currency differences arising on the retranslation of a financial liability designated as a hedge of a net
investment in a foreign operation are recognised in other comprehensive income to the extent that the hedge is
effective, and are presented within equity in the translation reserve. To the extent that the hedge is ineffective,
such differences are recognised in the income statement. When the hedged part of a net investment is disposed
of, the relevant amount in the translation reserve is transferred to the income statement as part of the profit or
loss on disposal.
(e) Non-derivative financial instruments

(i) General
Non-derivative financial instruments comprise investments in equity and debt securities, trade and other
receivables, cash and cash equivalents, loans and borrowings, and trade and other payables. Non-derivative
financial instruments are recognised initially at fair value plus, for instruments not at fair value through profit
or loss, any directly attributable transaction costs. Subsequent to initial recognition non-derivative financial
instruments are measured as described subsequently.
Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on
demand and form an integral part of Heineken’s cash management are included as a component of cash and
cash equivalents for the purpose of the statement of cash flows.
Accounting policies for interest income, interest expenses and other net finance income and expenses are
discussed in note 3t.
Annual Report 2009 – Heineken N.V. 


(e) Non-derivative financial instruments continued
(ii) Held-to-maturity investments
If Heineken has the positive intent and ability to hold debt securities to maturity, they are classified as held-to-
maturity. Debt securities are loans and long-term receivables and are measured at amortised cost using the
effective interest method, less any impairment losses. Investments held-to-maturity are recognised or
derecognised on the day they are transferred to or by Heineken.
(iii) Available-for-sale investments

Heineken’s investments in equity securities and certain debt securities are classified as available-for-sale.
Subsequent to initial recognition, they are measured at fair value and changes therein – other than impairment
losses (see note 3k(i)), and foreign currency differences on available-for-sale monetary items (see note 3d(i)) –
are recognised in other comprehensive income and presented within equity in the fair value reserve. When
these investments are derecognised, the relevant cumulative gain or loss in the fair value reserve is transferred
to the income statement. Where these investments are interest-bearing, interest calculated using the effective
interest method is recognised in the income statement. Available-for-sale investments are recognised or
derecognised by Heineken on the date it commits to purchase or sell the investments.
(iv) Investments at fair value through profit or loss

An investment is classified at fair value through profit or loss if it is held for trading or is designated as such upon
initial recognition. Investments are designated at fair value through profit or loss if Heineken manages such
investments and makes purchase and sale decisions based on their fair value in accordance with Heineken’s
documented risk management or investment strategy. Upon initial recognition, attributable transaction costs
are recognised in the income statement when incurred.
Investments at fair value through profit or loss are measured at fair value, with changes therein recognised in
the income statement as part of the other net finance income or expenses. Investments at fair value through
profit and loss are recognised or derecognised by Heineken on the date it commits to purchase or sell the
investments.
(v) Other
Other non-derivative financial instruments are measured at amortised cost using the effective interest method,
less any impairment losses. Included in non-derivative financial instruments are advances to customers.
Subsequently, the advances are amortised over the term of the contract as a reduction of revenue.
 Annual Report 2009 – Heineken N.V.

(f) Derivative financial instruments (including hedge accounting)
(i) General
Heineken uses derivatives in the ordinary course of business in order to manage market risks. Generally
Heineken seeks to apply hedge accounting in order to minimise the effects of foreign currency fluctuations
in the income statement.
Derivatives that can be used are interest rate swaps, forward rate agreements, caps and floors, commodity
swaps, spot and forward exchange contracts and options. Transactions are entered into with a limited number
of counterparties with strong credit ratings. Foreign currency, interest rate and commodity hedging operations
are governed by internal policies and rules approved and monitored by the Executive Board.
Derivative financial instruments are recognised initially at fair value, with attributable transaction costs
recognised in the income statement when incurred. Derivatives for which hedge accounting is not applied are
accounted for as instruments at fair value through profit or loss. When derivatives qualify for hedge accounting,
subsequent measurement is at fair value, and changes therein accounted for as described 3d(iii), 3f(ii) and 3f(iii).
The fair value of interest rate swaps is the estimated amount that Heineken would receive or pay to terminate
the swap at the balance sheet date, taking into account current interest rates.
(ii) Cash flow hedges

Changes in the fair value of the derivative hedging instrument designated as a cash flow hedge are recognised in
other comprehensive income and presented in the hedging reserve within equity to the extent that the hedge is
effective. To the extent that the hedge is ineffective, changes in fair value are recognised in the income statement.
If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated or
exercised, then hedge accounting is discontinued and the cumulative unrealised gain or loss previously
recognised in other comprehensive income and presented in the hedging reserve in equity, is recognised in the
income statement immediately, or when a hedging instrument is terminated, but the hedged transaction still is
expected to occur, the cumulative gain or loss at that point remains in other comprehensive income and is
recognised in accordance with the above-mentioned policy when the transaction occurs. When the hedged item
is a non-financial asset, the amount recognised in other comprehensive income is transferred to the carrying
amount of the asset when it is recognised. In other cases the amount recognised in other comprehensive
income is transferred to the same line of the income statement in the same period that the hedged item affects
the income statement.
(iii) Fair value hedges

Changes in the fair value of a derivative hedging instrument designated as a fair value hedge are recognised in
the income statement. The hedged item also is stated at fair value in respect of the risk being hedged; the gain
or loss attributable to the hedged risk is recognised in the income statement and adjusts the carrying amount
of the hedged item.
If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a
hedged item for which the effective interest method is used is amortised to the income statement over the
period to maturity.
Annual Report 2009 – Heineken N.V. 


(f) Derivative financial instruments (including hedge accounting) continued
(iv) Separable embedded derivatives
Embedded derivatives are separated from the host contract and accounted for separately if the economic
characteristics and risks of the host contract and the embedded derivative are not closely related, a separate
instrument with the same terms as the embedded derivative would meet the definition of a derivative, and the
combined instrument is not measured at fair value through profit or loss. Changes in the fair value of separable
embedded derivatives are recognised immediately in the income statement.
(g) Share capital

(i) Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares
are recognised as a deduction from equity, net of any tax effects.
(ii) Repurchase of share capital (treasury shares)

When share capital recognised as equity is repurchased, the amount of the consideration paid, which includes
directly attributable costs, is net of any tax effects, and is recognised as a deduction from equity. Repurchased
shares are classified as treasury shares and are presented in the reserve for own shares. When treasury shares
are sold or reissued subsequently, the amount received is recognised as an increase in equity, and the resulting
surplus or deficit on the transaction is transferred to or from retained earnings.
(iii) Dividends
Dividends are recognised as a liability in the period in which they are declared.
(h) Property, Plant and Equipment (P, P & E)

(i) Owned assets
Items of property, plant and equipment are measured at cost less government grants received (refer (s)),
accumulated depreciation (refer (iv)) and accumulated impairment losses (3k(ii)).
Cost comprises the initial purchase price increased with expenditures that are directly attributable to the
acquisition of the asset (like transports and non-recoverable taxes). The cost of self-constructed assets includes
the cost of materials and direct labour and any other costs directly attributable to bringing the asset to a
working condition for its intended use (like an appropriate proportion of production overheads), and the costs of
dismantling and removing the items and restoring the site on which they are located. Borrowing costs related to
the acquisition or construction of qualifying assets are capitalised as part of the cost of that asset.
Spare parts that are acquired as part of an equipment purchase and only to be used in connection with this
specific equipment are initially capitalised and amortised as part of the equipment.
Where an item of property, plant and equipment comprises major components having different useful lives,
they are accounted for as separate items of property, plant and equipment.
 Annual Report 2009 – Heineken N.V.

(ii) Leased assets
Leases in terms of which Heineken assumes substantially all the risks and rewards of ownership are classified
as finance leases. Upon initial recognition P, P & E acquired by way of finance lease is measured at an amount
equal to the lower of its fair value and the present value of the minimum lease payments at inception of the
lease. Lease payments are apportioned between the outstanding liability and finance charges so as to achieve
a constant periodic rate of interest on the remaining balance of the liability.
Other leases are operating leases and are not recognised in Heineken’s statement of financial position.
Payments made under operating leases are charged to the income statement on a straight-line basis over the
term of the lease. When an operating lease is terminated before the lease period has expired, any payment
required to be made to the lessor by way of penalty is recognised as an expense in the period in which
termination takes place.
(iii) Subsequent expenditure

The cost of replacing a part of an item of property, plant and equipment is recognised in the carrying amount
of the item or recognised as a separate asset, as appropriate, if it is probable that the future economic benefits
embodied within the part will flow to Heineken and its cost can be measured reliably. The carrying amount of
the replaced part is derecognised. The costs of the day-to-day servicing of property, plant and equipment are
recognised in the income statement when incurred.
(iv) Depreciation
Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount
substituted for cost, less its residual value.
Land is not depreciated as it is deemed to have an infinite life. Depreciation on other P, P & E is charged to the
income statement on a straight-line basis over the estimated useful lives of items of property, plant and
equipment, and major components that are accounted for separately, since this most closely reflects the
expected pattern of consumption of the future economic benefits embodied in the asset. Assets under
construction are not depreciated. The estimated useful lives are as follows:
• Buildings 30 – 40 years
• Plant and equipment 10 – 30 years
• Other fixed assets 5 – 10 years.
Where parts of an item of P, P & E have different useful lives, they are accounted for as separate items of P, P & E.
The depreciation methods, residual value as well as the useful lives are reassessed, and adjusted if appropriate,
at each financial year-end.
(v) Gains and losses on sale

Net gains on sale of items of P, P & E are presented in the income statement as other income. Net losses on sale
are included in depreciation. Net gains and losses are recognised in the income statement when the significant
risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the
associated costs can be estimated reliably, and there is no continuing management involvement with the P, P & E.
Annual Report 2009 – Heineken N.V. 


(i) Intangible assets
(i) Goodwill
Goodwill arises on the acquisition of subsidiaries, associates and joint ventures and represents the excess of
the cost of the acquisition over Heineken’s interest in net fair value of the net identifiable assets, liabilities and
contingent liabilities of the acquiree.
Goodwill on acquisitions of subsidiaries is included in ‘intangible assets’. Goodwill arising on the acquisition of
associates and joint ventures is included in the carrying amount of the associate, respectively the joint ventures.
In respect of acquisitions prior to 1 October 2003, goodwill is included on the basis of deemed cost, being the
amount recorded under previous GAAP. Goodwill on acquisitions purchased before 1 January 2003 has been
deducted from equity.
Goodwill arising on the acquisition of a minority interest in a subsidiary represents the excess of the cost
of the additional investment over the carrying amount of the interest in the net assets acquired at the date
of exchange.
Goodwill is measured at cost less accumulated impairment losses (refer accounting policy 3k(ii)). Goodwill is
allocated to individual or groups of cash-generating units for the purpose of impairment testing and is tested
annually for impairment.
Negative goodwill is recognised directly in the income statement as other income.
(ii) Brands
Brands acquired, separately or as part of a business combination, are capitalised if they meet the definition
of an intangible asset and the recognition criteria are satisfied.
Brands acquired as part of a business combination are valued at fair value based on the royalty relief method.
Brands acquired separately are measured at cost.
Strategic brands are well-known international/local brands with a strong market position and an established
brand name.
Strategic brands are amortised on an individual basis over the estimated useful life of the brand. Other brands
are amortised on a portfolio basis per country.
(iii) Customer-related and contract-based intangibles

Customer-related and contract-based intangibles are capitalised if they meet the definition of an intangible
asset and the recognition criteria are satisfied. If the amounts are not material these are included in the brand
valuation. The relationship between brands and customer-related intangibles is carefully considered so that
brands and customer-related intangibles are not both recognised on the basis of the same cash flows.
Customer-related and contract-based intangibles acquired as part of a business combination are valued at fair
value. Customer-related and contract-based intangibles acquired separately are measured at cost.
Customer-related and contract-based intangibles are amortised over the period of the contractual
arrangements or the remaining useful life of the customer relationships.
 Annual Report 2009 – Heineken N.V.

(iv) Software, research and development and other intangible assets
Purchased software is measured at cost less accumulated amortisation (refer (vi)) and impairment losses (refer
accounting policy 3k(ii)). Expenditure on internally developed software is capitalised when the expenditure
qualifies as development activities, otherwise it is recognised in the income statement when incurred.
Expenditure on research activities, undertaken with the prospect of gaining new technical knowledge and
understanding, is recognised in the income statement when incurred.
Development activities involve a plan or design for the production of new or substantially improved products,
software and processes. Development expenditure is capitalised only if development costs can be measured
reliably, the product or process is technically and commercially feasible, future economic benefits are probable,
and Heineken intends to and has sufficient resources to complete development and to use or sell the asset. The
expenditure capitalised includes the cost of materials, direct labour and overhead costs that are directly
attributable to preparing the asset for its intended use, and capitalised borrowing costs. Other development
expenditure is recognised in the income statement when incurred.
Capitalised development expenditure is measured at cost less accumulated amortisation (refer (vi)) and
accumulated impairment losses (refer accounting policy 3k(ii)).
Other intangible assets that are acquired by Heineken are measured at cost less accumulated amortisation
(refer (vi)) and impairment losses (refer accounting policy 3k(ii)). Expenditure on internally generated goodwill
and brands is recognised in the income statement when incurred.
(v) Subsequent expenditure

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the
specific asset to which it relates. All other expenditure is expensed when incurred.
(vi) Amortisation
Amortisation is calculated over the cost of the asset, or other amount substituted for cost, less its residual value.
Intangible assets with a finite life are amortised on a straight-line basis over their estimated useful lives from the
date they are available for use, since this most closely reflects the expected pattern of consumption of the future
economic benefits embodied in the asset. The estimated useful lives are as follows:
• Strategic brands 40 – 50 years

• Other brands 15 – 25 years
• Customer-related and contract-based intangibles 5 – 30 years
• Software 3 – 5 years
• Capitalised development costs 3 years.
(vii) Gains and losses on sale

Net gains on sale of intangible assets are presented in the income statement as other income. Net losses on sale
are included in amortisation. Net gains and losses are recognised in the income statement when the significant
risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable,
the associated costs can be estimated reliably, and there is no continuing management involvement with the
intangible assets.
Annual Report 2009 – Heineken N.V. 


(j) Inventories
(i) General
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the
weighted average cost formula, and includes expenditure incurred in acquiring the inventories, production or
conversion costs and other costs incurred in bringing them to their existing location and condition. Net
realisable value is the estimated selling price in the ordinary course of business, less the estimated costs
of completion and selling expenses.
(ii) Finished products and work in progress

Finished products and work in progress are measured at manufacturing cost based on weighted averages
and takes into account the production stage reached. Costs include an appropriate share of direct production
overheads based on normal operating capacity.
(iii) Other inventories and spare parts

The cost of other inventories is based on weighted averages. Spare parts are valued at the lower of cost and net
realisable value. Value reductions and usage of parts are charged to the income statement. Spare parts that are
acquired as part of an equipment purchase and only to be used in connection with this specific equipment are
initially capitalised and amortised as part of the equipment.
(k) Impairment
(i) Financial assets
A financial asset is assessed at each reporting date to determine whether there is any objective evidence that
it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more
events have had a negative effect on the estimated future cash flows of that asset.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference
between its carrying amount, and the present value of the estimated future cash flows discounted at the
original effective interest rate. An impairment loss in respect of an available-for-sale financial asset is calculated
by reference to its current fair value.
Individually significant financial assets are tested for impairment on an individual basis. The remaining
financial assets are assessed collectively in groups that share similar credit risk characteristics.
All impairment losses are recognised in the income statement. Any cumulative loss in respect of an available-
for-sale financial asset recognised previously in other comprehensive income and presented in the fair value
reserve in equity is transferred to the income statement.
An impairment loss is reversed if the reversal can be related objectively to an event occurring after the
impairment loss was recognised. For financial assets measured at amortised cost and available-for-sale
financial assets that are debt securities, the reversal is recognised in the income statement. For available-for-
sale financial assets that are equity securities, the reversal is recognised in other comprehensive income.
 Annual Report 2009 – Heineken N.V.

(ii) Non-financial assets
The carrying amounts of Heineken’s non-financial assets, other than inventories (refer accounting policy (j))
and deferred tax assets (refer accounting policy (u)), are reviewed at each reporting date to determine whether
there is any indication of impairment. If any such indication exists then the asset’s recoverable amount is
estimated. For goodwill and intangible assets that are not yet available for use, the recoverable amount is
estimated each year at the same time.
The recoverable amount of an asset or cash-generating unit is the higher of an asset’s fair value less costs to sell
and value in use. The recoverable amount of an asset or cash-generating unit is considered the value in use. In
assessing value in use, the estimated future cash flows are discounted to their present value using a post-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset.
For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the
smallest group of assets that generates cash inflows from continuing use that are largely independent of the
cash inflows of other assets or groups of assets (the ‘cash-generating unit’).
For the purpose of impairment testing, goodwill acquired in a business combination, is allocated to each of
the acquirer's cash-generating units, or groups of cash-generating units, that is expected to benefit from the
synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the
lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill
is monitored on regional, subregional or country level depending on the characteristics of the acquisition, the
synergies to be achieved and the level of integration.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its
recoverable amount. A cash-generating unit is the smallest identifiable asset group that generates cash flows
that largely are independent from other assets and groups. Impairment losses are recognised in the income
statement. Impairment losses recognised in respect of cash-generating units are allocated first to reduce the
carrying amount of any goodwill allocated to the units and then to reduce the carrying amounts of the other
assets in the unit (group of units) on a pro rata basis. An impairment loss in respect of goodwill is not reversed.
In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for
any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been
a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the
extent that the asset’s carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or amortisation, if no impairment loss had been recognised.
Goodwill that forms part of the carrying amount of an investment in an associate and joint venture is not
recognised separately, and therefore is not tested for impairment separately. Instead, the entire amount of the
investment in an associate and joint venture is tested for impairment as a single asset when there is objective
evidence that the investment in an associate may be impaired.
Annual Report 2009 – Heineken N.V. 


(l) Non-current assets held for sale
Non-current assets (or disposal groups comprising assets and liabilities) that are expected to be recovered
primarily through sale rather than through continuing use are classified as held for sale. Immediately before
classification as held for sale, the assets (or components of a disposal group) are remeasured in accordance
with Heineken’s accounting policies. Thereafter the assets (or disposal group) are measured at the lower of their
carrying amount and fair value less cost to sell. Any impairment loss on a disposal group is first allocated to
goodwill, and then to remaining assets and liabilities on pro rata basis, except that no loss is allocated to
inventories, financial assets, deferred tax assets and employee benefit assets, which continue to be measured in
accordance with Heineken’s accounting policies. Impairment losses on initial classification as held for sale and
subsequent gains or losses on remeasurement are recognised in the income statement. Gains are not
recognised in excess of any cumulative impairment loss.
(m) Employee benefits

(i) Defined contribution plans
A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate
entity. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold
sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Obligations for contributions to defined contribution pension plans are recognised as an employee benefit
expense in the income statement in the periods during which services are rendered by employees. Prepaid
contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is
available.
(ii) Defined benefit plans

A defined benefit plan is a pension plan that is not a defined contribution plan. Typically defined benefit plans
define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or
more factors such as age, years of service and compensation.
Heineken’s net obligation in respect of defined benefit pension plans is calculated separately for each plan by
estimating the amount of future benefit that employees have earned in return for their service in the current
and prior periods; that benefit is discounted to determine its present value. Any unrecognised past service costs
and the fair value of any plan assets are deducted. The discount rate is the yield at balance sheet date on
AA-rated bonds that have maturity dates approximating the terms of Heineken’s obligations and that are
denominated in the same currency in which the benefits are expected to be paid.
The calculations are performed annually by qualified actuaries using the projected unit credit method.
When the calculation results in a benefit to Heineken, the recognised asset is limited to the net total of any
unrecognised actuarial gains and losses and any unrecognised past service costs and the present value
of economic benefits available in the form of any future refunds from the plan or reductions in future
contributions to the plan. An economic benefit is available to the Group if it is realisable during the life
of the plan, or on settlement of the plan liabilities.
 Annual Report 2009 – Heineken N.V.

When the benefits of a plan are improved, the portion of the increased benefit relating to past service by
employees is recognised as an expense in the income statement on a straight-line basis over the average period
until the benefits become vested. To the extent that the benefits vest immediately, the expense is recognised
immediately in the income statement.
In respect of actuarial gains and losses that arise, Heineken applies the corridor method in calculating the
obligation in respect of a plan. To the extent that any cumulative unrecognised actuarial gain or loss exceeds
ten per cent of the greater of the present value of the defined benefit obligation and the fair value of plan assets,
that portion is recognised in the income statement over the expected average remaining working lives of the
employees participating in the plan. Otherwise, the actuarial gain or loss is not recognised.
(iii) Other long-term employee benefits

Heineken’s net obligation in respect of long-term employee benefits, other than pension plans, is the amount
of future benefit that employees have earned in return for their service in the current and prior periods; that
benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The
discount rate is the yield at balance sheet date on high-quality credit-rated bonds that have maturity dates
approximating the terms of Heineken’s obligations. The obligation is calculated using the projected unit credit
method. Any actuarial gains and losses are recognised in the income statement in the period in which they arise.
(iv) Termination benefits

Termination benefits are payable when employment is terminated by the Group before the normal retirement
date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. Termination
benefits are recognised as an expense when Heineken is demonstrably committed to either terminating the
employment of current employees according to a detailed formal plan without possibility of withdrawal, or
providing termination benefits as a result of an offer made to encourage voluntary redundancy. Termination
benefits for voluntary redundancies are recognised if Heineken has made an offer encouraging voluntary
redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated
reliably.
Benefits falling due more than 12 months after the balance sheet date are discounted to their present value.
Annual Report 2009 – Heineken N.V. 


(m) Employee benefits continued
(v) Share-based payment plan (Long-Term Incentive Plan)
As from 1 January 2005 Heineken established a share plan for the Executive Board members and as from
1 January 2006 Heineken also established a share plan for senior management members (see note 29).
The grant date fair value of the share rights granted is recognised as personnel expenses with a corresponding
increase in equity (equity-settled), over the period that the employees become unconditionally entitled to the
share rights. The costs of the share plan for both the Executive Board and senior management members are
spread evenly over the performance period.
At each balance sheet date, Heineken revises its estimates of the number of share rights that are expected to
vest, only for the 75 per cent internal performance conditions of the share plan of the senior management
members. It recognises the impact of the revision of original estimates, if any, in the income statement, with
a corresponding adjustment to equity. The fair value is measured at grant date using the Monte Carlo model
taking into account the terms and conditions of the plan.
(vi) Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the
related service is provided.
A liability is recognised for the amount expected to be paid under short-term benefits if the Group has a present
legal or constructive obligation to pay this amount as a result of past service provided by the employee and the
obligation can be estimated reliably.
(n) Provisions
(i) General
A provision is recognised if, as a result of a past event, Heineken has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle
the obligation. Provisions are measured at the present value of the expenditures to be expected to be required
to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money
and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as part
of the net finance expenses.
(ii) Restructuring
A provision for restructuring is recognised when Heineken has approved a detailed and formal restructuring
plan, and the restructuring has either commenced or has been announced publicly. Future operating losses are
not provided for. The provision includes the benefit commitments in connection with early retirement and
redundancy schemes.
 Annual Report 2009 – Heineken N.V.

(iii) Onerous contracts
A provision for onerous contracts is recognised when the expected benefits to be derived by Heineken from
a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is
measured at the present value of the lower of the expected cost of terminating the contract and the expected
net cost of continuing with the contract. Before a provision is established, Heineken recognises any impairment
loss on the assets associated with that contract.
(o) Loans and borrowings

Loans and borrowings are recognised initially at fair value, net of transaction costs incurred. Loans and
borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction
costs) and the redemption value is recognised in the income statement over the period of the borrowings using
the effective interest method. Loans and borrowings included in a fair value hedge are stated at fair value in
respect of the risk being hedged.
Loans and borrowings for which the Group has an unconditional right to defer settlement of the liability for
at least 12 months after the balance sheet date, are classified as non-current liabilities.
(p) Revenue
(i) Products sold
Revenue from the sale of products in the ordinary course of business is measured at the fair value of the
consideration received or receivable, net of sales tax, excise duties, returns, customer discounts and other
sales-related discounts. Revenue from the sale of products is recognised in the income statement when the
amount of revenue can be measured reliably, the significant risks and rewards of ownership have been
transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return
of products can be estimated reliably, and there is no continuing management involvement with the products.
(ii) Other revenue

Other revenues are proceeds from royalties, rental income, pub management services and technical services
to third parties, net of sales tax. Royalties are recognised in the income statement on an accrual basis in
accordance with the substance of the relevant agreement. Rental income and technical services are recognised
in the income statement when the services have been delivered.
(q) Other income

Other income are gains from sale of P, P & E, intangible assets and (interests in) subsidiaries, joint ventures and
associates, net of sales tax. They are recognised in the income statement when ownership has been transferred
to the buyer.
Annual Report 2009 – Heineken N.V. 


(r) Expenses
(i) Operating lease payments
Payments made under operating leases are recognised in the income statement on a straight-line basis over the
term of the lease. Lease incentives received are recognised in the income statement as an integral part of the
total lease expense, over the term of the lease.
(ii) Finance lease payments

Minimum lease payments under finance leases are apportioned between the finance expense and the reduction
of the outstanding liability. The finance expense is allocated to each period during the lease term so as to
produce a constant periodic rate of interest on the remaining balance of the liability. Contingent lease payments
are accounted for by revising the minimum lease payments over the remaining term of the lease when the
lease adjustment is confirmed.
(s) Government grants

Government grants are recognised at their fair value when it is reasonably assured that Heineken will comply
with the conditions attaching to them and the grants will be received.
Government grants relating to P, P & E are deducted from the carrying amount of the asset.
Government grants relating to costs are deferred and recognised in the income statement over the period
necessary to match them with the costs that they are intended to compensate.
(t) Interest income, interest expenses and other net finance income and expenses
Interest income and expenses are recognised as they accrue, using the effective interest method unless
collectability is in doubt.
Other net finance income comprises dividend income, gains on the disposal of available-for-sale investments,
changes in the fair value of investments designated at fair value through profit or loss and held for trading
investments and gains and losses on hedging instruments that are recognised in the income statement.
Dividend income is recognised in the income statement on the date that Heineken’s right to receive payment
is established, which in the case of quoted securities is the ex-dividend date.
Other net finance expenses comprise unwinding of the discount on provisions, changes in the fair value of
investments designated at fair value through profit or loss and held for trading investments, impairment losses
recognised on investments, and gains or losses on hedging instruments that are recognised in the income
statement.
Foreign currency gains and losses are reported on a net basis in the other net finance expenses.
 Annual Report 2009 – Heineken N.V.

(u) Income tax
Income tax comprises current and deferred tax. Current tax and deferred tax are recognised in the income
statement except to the extent that it relates to items recognised directly to equity, in which case it is recognised
in equity or in other comprehensive income.
Current tax is the expected income tax payable or receivable in respect of taxable profit or loss for the year,
using tax rates enacted or substantially enacted at the balance sheet date, and any adjustment to income tax
payable in respect of profits of previous years.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and their tax bases.
Deferred tax assets and liabilities are not recognised for the following temporary differences: (i) the initial
recognition of goodwill, (ii) the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit or loss, (iii) differences relating to
investments in subsidiaries, joint ventures and associates resulting from translation of foreign operations and
(iv) differences relating to investments in subsidiaries and joint ventures to the extent that the Company is able
to control the timing of the reversal of the temporary difference and they will probably not reverse in the
foreseeable future.
Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the
balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred
tax liability is settled.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on
different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to
realise the assets and settle the liabilities simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to
the extent that it is probable that future taxable profits will be available against which they can be utilised.
Deferred tax assets are reviewed at each balance sheet date and are reduced to the extent that it is no longer
probable that the related tax benefit will be realised.
Deferred tax assets are recognised in respect of the carry forward of unused tax losses and tax credits. When
an entity has a history of recent losses, the entity recognises a deferred tax asset arising from unused tax losses
or tax credits only to the extent that the entity has sufficient taxable temporary differences or there is
convincing other evidence that sufficient taxable profit will be available against which the unused tax losses
or unused tax credits can be utilised by the entity.
Annual Report 2009 – Heineken N.V. 


(v) Earnings per share
Heineken presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated
by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average
number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or l
oss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for
the effects of all dilutive potential ordinary shares, which comprise share rights granted to employees.
(w) Cash flow statement

The cash flow statement is prepared using the indirect method. Changes in balance sheet items that have not
resulted in cash flows such as translation differences, fair value changes, equity-settled share-based payments
and other non-cash items, have been eliminated for the purpose of preparing this statement. Assets and
liabilities acquired as part of a business combination are included in investing activities (net of cash acquired).
Dividends paid to ordinary shareholders are included in financing activities. Dividends received are classified
as operating activities. Interest paid is also included in operating activities.
(x) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the Executive
Board, who is considered to be the Group’s chief operating decision maker. An operating segment is a
component of Heineken that engages in business activities from which it may earn revenues and incur
expenses, including revenues and expenses that relate to transactions with any of Heineken’s other
components. All operating segments’ operating results are reviewed regularly by the Executive Board to make
decisions about resources to be allocated to the segment and to assess its performance, and for which discrete
financial information is available.
Inter-segment transfers or transactions are entered into under the normal commercial terms and conditions
that would also be available to unrelated third parties.
Segment results, assets and liabilities that are reported to the Executive Board include items directly
attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated result items
comprise net finance expenses and income tax expenses. Unallocated assets comprise current other
investments and cash call deposits.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and
equipment, and intangible assets other than goodwill.
(y) Emission rights

Emission rights are related to the emission of CO2, which relates to the production of energy. These rights are
freely tradable. Bought emission rights and liabilities due to production of CO2 are measured at cost, including any
directly attributable expenditure. Emission rights received for free are also recorded at cost, i.e. with a zero value.
 Annual Report 2009 – Heineken N.V.

(z) Recently issued IFRS
(i) Standards effective in 2009 and reflected in these consolidated financial statements
• IAS 23 Revised Borrowing costs (effective from 1 January 2009). This amendment requires an entity to
capitalise borrowing costs directly attributable to the acquisition, construction or production of a qualifying
asset (one that takes a substantial period of time to get ready for use or sale) as part of the cost of that asset.
The option of immediately expensing those borrowing costs is removed. IAS 23 revised constitutes a change
in accounting policy for Heineken, refer to 3b.
• IAS 1 Revised Presentation of Financial Statements (effective from 1 January 2009). The amendment
introduces the term total comprehensive income, which represents changes in equity during a period other
than those changes resulting from transactions with owners. The revised IAS 1 constitutes a change on the
presentation of the consolidated financial statements (refer to 3b). Heineken provides total comprehensive
income in an income statement and a separate statement of comprehensive income.
• IFRS 7 Financial Instruments – Disclosures (amendment, effective 1 January 2009). The amendment
requires enhanced disclosures about fair value measurement and liquidity risk. In particular, the
amendment requires disclosure of fair value measurements by level of a fair value measurement hierarchy.
This change in accounting policy only results in additional disclosures (refer 3b).
• IFRS 8 Operating segments (effective from 1 January 2009). IFRS 8 replaces IAS 14 and aligns segment
reporting with the requirements of the US standard SFAS 131, ‘Disclosures about segments of an enterprise
and related information’. The new standard requires a ‘management approach’, under which segment
information is presented on the same basis as that used for internal reporting purposes. Based on the
current internal reporting, this standard does not have an impact on the reportable segments and as such,
does not represent a change in accounting policies.
• Other standards: other standards and interpretations effective from 1 January 2009 did not have
a significant impact on the Company.
(ii) New relevant standards and interpretations not yet adopted

The following new standards and interpretations to existing standards relevant to Heineken are not yet
effective for the year ended 31 December 2009, and have not been applied in preparing these consolidated
financial statements:
• I FRS 3 Revised Business combinations (effective from 1 July 2009). This standard continues to apply the
acquisition method to business combinations, with some significant changes. For example, all payments
to purchase a business are to be recorded at fair value at the acquisition date, with contingent payments
classified as debt subsequently re-measured through the income statement. There is a choice on an
acquisition-by-acquisition basis to measure the non-controlling interest in the acquiree either at fair value or
at the non-controlling interest’s proportionate share of the acquiree’s net assets. All acquisition-related costs
should be expensed. Furthermore, tax losses from previous acquisitions and recognised subsequent to the
implementation of IFRS 3R will be recognised through the income statements instead as adjustment to
goodwill. Heineken will apply IFRS 3R prospectively to all business combinations from 1 January 2010 and
will have an impact on the consolidated financial statements as from then.
• IAS 27 (Amended) Consolidated and Separate Financial Statements (effective from 1 July 2009) requires
accounting for changes in ownership interests by the Group in a subsidiary, while maintaining control, to be
recognised as an equity transaction. When the Group loses control of a subsidiary, any interest retained in
the former subsidiary will be measured at fair value with the gain or loss recognised in the income
statement. Heineken will apply this standard prospectively as from 1 January 2010 and will have an impact
on the consolidated financial statements as from then.
• IFRS 9 Financial Instruments is part of the IASB's wider project to replace IAS 39 ‘Financial Instruments:
Recognition and Measurement’. IFRS 9 retains but simplifies the mixed measurement model and establishes
two primary measurement categories for financial assets, amortised cost and fair value. The basis of
classification depends on the entity's business model and the contractual cash flow characteristics of the
financial asset. The standard is effective for annual periods beginning on or after 1 January 2013, but has not
yet been endorsed by the EU. Heineken is in the process of evaluating the impact of the applicability of the
new standard.
Annual Report 2009 – Heineken N.V. 

4. Determination of fair values

(i) General
A number of Heineken’s accounting policies and disclosures require the determination of fair value, for both
financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or
disclosure purposes based on the following methods. When applicable, further information about the
assumptions made in determining fair values or for the purpose of impairment testing is disclosed in
the notes specific to that asset or liability.
(ii) Property, plant and equipment

The fair value of property, plant and equipment recognised as a result of a business combination is based on the
quoted market prices for similar items when available and replacement cost when appropriate.
(iii) Intangible assets

The fair value of brands acquired in a business combination is based on the ‘relief of royalty’ method. The fair
value of customer relationships acquired in a business combination is determined using the multi-period excess
earnings method, whereby the subject asset is valued after deducting a fair return on all other assets that are
part of creating the related cash flows. The fair value of other intangible assets is based on the discounted cash
flows expected to be derived from the use and eventual sale of the assets.
(iv) Inventories
The fair value of inventories acquired in a business combination is determined based on its estimated selling
price in the ordinary course of business less the estimated costs of completion and sale, and a reasonable profit
margin based on the effort required to complete and sell the inventories.
(v) Investments in equity and debt securities

The fair value of financial assets at fair value through profit or loss, held-to-maturity investments and available-
for-sale financial assets is determined by reference to their quoted closing bid price at the reporting date. The
fair value of held-to-maturity investments is determined for disclosure purposes only. In case the quoted price
does not exist at the date of exchange or in case the quoted price exists at the date of exchange but was not
used as the cost, the investments are valued indirectly based on discounted cash flow models.
(vi) Trade and other receivables

The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted
at the market rate of interest at the reporting date. This fair value is determined for disclosure purposes.
(vii) Derivative financial instruments

The fair value of forward exchange contracts is based on their listed market price, if available. If a listed market
price is not available, then fair value is in general estimated by discounting the difference between the
contractual forward price and the current forward price for the residual maturity of the contract using a
risk-free interest rate (based on inter-bank interest rates). The fair value of interest rate swaps is estimated
by discounting the difference between cash flows resulting from the contractual interest rates of both legs
of the transaction, taking into account current interest rates and the current creditworthiness of the swap
counterparties.
Fair values reflect the credit risk of the instrument and include adjustments to take account of the credit risk
of the Group entity and counterparty when appropriate.
 Annual Report 2009 – Heineken N.V.

(viii) Non-derivative financial instruments
Fair value, which is determined for disclosure purposes or when fair value hedge accounting is applied, is
calculated based on the present value of future principal and interest cash flows, discounted at the market rate
of interest at the reporting date. For finance leases the market rate of interest is determined by reference to
similar lease agreements.
5. Operating segments
Heineken distinguishes the following six reportable segments:
• Western Europe
• Central and Eastern Europe
• The Americas
• Africa and the Middle East
• Asia Pacific
• Head Office/eliminations.
These six reportable segments are the Group’s business regions. These business regions are each managed
separately by a regional president. The regional president is directly accountable for the functioning of the
segment’s assets, liabilities and results of the region and maintains regular contact with the Executive Board
(the chief operating decision maker) to discuss operating activities, regional forecasts and regional results.
For each of the six reportable segments, the Executive Board reviews internal management reports on a
monthly basis.
Information regarding the results of each reportable segment is included in the table on the next page.
Performance is measured based on EBIT (beia), as included in the internal management reports that are
reviewed by the Executive Board. EBIT (beia) is defined as earnings before interest and taxes and net finance
expenses, before exceptional items and amortisation of brands and customer relationships. Exceptional items
are defined as items of income and expense of such size, nature or incidence, that in view of management their
disclosure is relevant to explain the performance of Heineken for the period. EBIT and EBIT (beia) are not
financial measures calculated in accordance with IFRS. EBIT (beia) is used to measure performance as
management believes that this measurement is the most relevant in evaluating the results of these regions.
Heineken has multiple distribution models to deliver goods to end customers. There is no reliance on major
clients. Deliveries to end consumers are carried in some countries via own wholesalers or own pubs, in other
markets directly and in some others via third parties. As such, distribution models are country specific and
on consolidated level diverse. In addition, these various distribution models are not centrally managed or
monitored. Consequently, the Executive Board is not allocating resources and assessing the performance based
on business type information and therefore no segment information is provided on business type.
Inter-segment pricing is determined on an arm’s length basis. As net finance expenses and income tax expenses
are monitored on a consolidated level (and not on an individual regional basis) and regional presidents are not
accountable for that, net finance expenses and income tax expenses are not provided per reportable segment.
Annual Report 2009 – Heineken N.V. 

5. Operating segments continued

Information about reportable segments
Central and
Western Europe Eastern Europe The Americas
In millions of EUR Note 2009 2008 2009 2008 2009 2008
Revenue
Third-party revenue1 7,775 6,979 3,183 3,671 1,540 1,566
Interregional revenue 657 682 17 16 1 –
Total revenue 8,432 7,661 3,200 3,687 1,541 1,566
Other income 28 16 11 5 – 1
Results from operating activities 504 505 329 98 204 163
Net finance expenses

Share of profit of associates and joint ventures
and impairments thereof (2) 4 18 13 69 43
Income tax expenses
Profit
Attributable to:
Equity holders of the Company (net profit)
Minority interest
EBIT reconciliation
EBIT 502 509 347 111 273 206
eia 290 266 42 289 – 4
EBIT (beia) 27 792 775 389 400 273 210
Beer volumes2
Consolidated volume 47,151 44,245 46,165 50,527 9,430 10,329
Joint ventures volume – – 8,909 10,775 8,988 8,803
Licences 243 345 – – 339 255
Group volume 47,394 44,590 55,074 61,302 18,757 19,387
Segment assets 11,047 11,143* 4,826 5,066 834 1,058

Investment in associates and joint ventures 26 29 143 123 565 450
Total segment assets 11,073 11,172 4,969 5,189 1,399 1,508
Unallocated assets
Total assets
Segment liabilities 3,355 3,635 1,153 1,128 123 107

Unallocated liabilities
Total equity
Total equity and liabilities
Purchase of P, P & E 291 447 216 335 13 19

Acquisition of goodwill 16 3,395* – 232 5 303
Purchases of intangible assets 31 10 20 18 1 108
Depreciation of P, P & E 401 365 244 259 15 17
Impairment and reversal of impairment of P, P & E 108 79 51 (1) – –
Amortisation intangible assets 89 70 21 20 12 13
Impairment intangible assets 21 – 4 275 – –
1
Includes other revenue of EUR 432 million in 2009 and EUR 360 million in 2008.
2
For volume definitions see ‘Glossary’. Joint venture volume excludes India volumes.
* Comparatives have been adjusted due to the finalisation of the purchase price accounting of the Scottish & Newcastle acquisition (see note 6).
 Annual Report 2009 – Heineken N.V.

Africa and Head Office/
the Middle East Asia Pacific Eliminations Consolidated
2009 2008 2009 2008 2009 2008 2009 2008
1,807 1,764 301 279 95 60 14,701 14,319

10 10 4 – (689) (708) – –
1,817 1,774 305 279 (594) (648) 14,701 14,319
2 10 – – – – 41 32
470 442 72 46 51 (72) 1,630 1,182
(329) (485)
15 20 31 (182) (4) – 127 (102)

(286) (248)
1,142 347
1,018 209
124 138
1,142 347
485 462 103 (136) 47 (72) 1,757 1,080

– 1 – 201 6 91 338 852
485 463 103 65 53 19 2,095 1,932
19,820 18,076 2,681 2,644 – – 125,247 125,821

2,228 2,186 10,897 11,039 – – 31,022 32,803
1,413 1,316 805 949 – – 2,800 2,865
23,461 21,578 14,383 14,632 – – 159,069 161,489
1,673 1,716 185 171 (414) (241) 18,151 18,913*

226 164 472 379 (5) – 1,427 1,145
1,899 1,880 657 550 (419) (241) 19,578 20,058
602 529*
20,180 20,587
466 640 107 70 571 203 5,775 5,783

8,758 10,052*
5,647 4,752
20,180 20,587
139 251 10 10 9 40 678 1,102

13 149 – – – – 34 4,079*
1 4 – – 46 18 99 158
84 79 10 7 14 14 768 741
2 2 – – 2 4 163 84
2 1 – – 3 2 127 106
– – – – – – 25 275
Annual Report 2009 – Heineken N.V. 

6. Acquisitions and disposals of subsidiaries and minority interests

Acquisitions and disposals 2009
During 2009, four minor acquisitions occurred within the UK, Nigeria and Egypt. Total goodwill on these
acquisitions amounts to EUR 34 million. These acquisitions individually are deemed immaterial in respect
of IFRS disclosure requirements.
Disposals during 2009 are related to a few minor disposals in Western Europe.
Total acquisitions and disposals had the following effect on Heineken’s assets and liabilities on
acquisition date:
Pre-
acquisition
carrying Fair value Total
In millions of EUR Note amounts adjustments acquisitions Total disposals
Property, plant & equipment 14 123 9 132 (27)
Intangible assets 15 36 – 36 –
Investments in associates and joint ventures 1 – 1 (2)
Inventories 1 – 1 –
Trade and other receivables 1 – 1 8
Prepayments and accrued income 1 – 1 –
Cash and cash equivalents 1 – 1 (1)
Minority interests 3 – 3 –
Loans and borrowings (91) – (91) –
Employee benefits – (1) (1) 1
Deferred tax liabilities 18 – (6) (6) –
Provisions 30 – (1) (1) –
Bank overdrafts (1) – (1) –
Current liabilities (19) (7) (26) 3
Net identifiable assets and liabilities 56 (6) 50 (18)
Goodwill on acquisitions 15 34 –
Consideration paid/(received), satisfied in cash 84 (18)
Net bank overdrafts acquired/Net bank
overdrafts disposed of – 1
Net cash outflow/(inflow) 84 (17)
The fair values of assets and liabilities of the 2009 acquisitions have been determined on a provisional basis, and
will be completed in 2010.
The newly acquired entity in the UK has been fully integrated in the Western European region. Goodwill on this
acquisition has been allocated to the Western European region for the purpose of impairment testing in line
with the operational responsibility.
In respect of the newly acquired entity in Egypt and Nigeria, the goodwill has been allocated to the individual
country. Although synergies are achieved on a regional basis these entities are less integrated in the region and
therefore goodwill is monitored on an individual country basis.
The contribution in 2009 of the acquisitions to results from operating activities and to revenue was immaterial.
If the acquisitions had occurred on 1 January 2009, management estimates that consolidated results from
operating activities and consolidated revenue would not have been materially different.
 Annual Report 2009 – Heineken N.V.

Provisional accounting Scottish & Newcastle (‘S&N’) acquisition in 2008
In the consolidated financial statements as at and for the year ended 2008, the fair values of assets and liabilities
of the acquisition of Scottish & Newcastle (‘S&N’) were determined on a provisional basis.
The purchase price adjustments of S&N have been finalised (except for agreement on the settlement of the net
debt of S&N with the consortium partner Carlsberg, see note 34 Contingencies) with some changes compared to
the provisional values. The main change concerns an increase in the deferred tax assets of EUR 103 million and
an increase of the deferred tax liabilities of EUR 24 million, with a corresponding net decrease in goodwill of
EUR 79 million due to the fact that S&N received certainty that part of the pre-acquisition losses will be available
for utilisation in the future, which can be offset against deferred tax liabilities already included in the opening
balance. The comparatives in the statement of financial position and the related notes (note 15 and 18) have
been adjusted in accordance with IFRS 3.
Provisional accounting other acquisitions in 2008

For the other acquisitions in 2008 (Rechitsapivo, Drinks Union, Central Europe Beverages, United Serbian
Breweries, Bere Mures, Sierra Leone, Tango and SNBG), the purchase price adjustments have been finalised
without significant changes.
7. Assets (or disposal groups) classified as held for sale

On 7 December 2009 Heineken signed agreements to sell its entire shareholding in Grande Brasserie de
Nouvelle Calédonie S.A. (GBNC) and a significant part of its shareholding in P.T. Multi Bintang Indonesia Tbk (MBI)
to Asia Pacific Breweries Ltd (APB) as part of Heineken’s strategic realignment of its interest in the Asia Pacific
region. Heineken’s interest in the Bintang brand will also be transferred to APB. The transaction was completed
on 10 February 2010. These subsidiaries have been deconsolidated and are classified as a disposal group held
for sale as at 31 December 2009.
Other assets classified as held for sale represent land and buildings following the commitment of Heineken
to a plan to sell certain land and buildings. During 2009, part of the assets classified as held for sale were sold.
Efforts to sell the remaining assets have commenced and are expected to be completed during 2010.
Assets classified as held for sale
In millions of EUR 2009 2008

Current assets 39 56
Non-current assets 70 –
109 56

Current liabilities 57 –
Non-current liabilities 8 –
65 –
Annual Report 2009 – Heineken N.V. 

8. Other income

Net gain on sale of P, P & E 39 32
Net gain on sale of subsidiaries, joint ventures and associates 2 –
41 32
9. Raw materials, consumables and services

Raw materials 1,140 1,230
Non-returnable packaging 1,739 1,782
Goods for resale 2,253 2,158
Inventory movements (5) (154)
Marketing and selling expenses 1,664 1,671
Transport expenses 934 988
Energy and water 319 349
Repair and maintenance 299 295
Loss on disposals of subsidiaries – 16
Other expenses 1,307 1,213
9,650 9,548
Other expenses include rentals of EUR 184 million, consultant expenses of EUR 158 million, telecom and office
automation of EUR 145 million and other fixed expenses of EUR 820 million.
 Annual Report 2009 – Heineken N.V.

10. Personnel expenses

Wages and salaries 1,554 1,519
Compulsory social security contributions 287 279
Contributions to defined contribution plans 17 10
Expenses related to defined benefit plans 28 107 78
Increase in other long-term employee benefits 7 3
Equity-settled share-based payment plan 29 10 11
Other personnel expenses 397 515
2,379 2,415
The decrease in other personnel expenses is mainly due to lower amounts paid for restructurings compared
to 2008.
The average number of employees during the year was:
In millions of EUR 2009 2008*

The Netherlands 3,938 4,176
Other Western Europe 17,557 18,598
Central and Eastern Europe 20,253 22,186
The Americas 1,698 1,778
Africa and the Middle East 10,882 10,719
Asia Pacific 973 996
Heineken N.V. and subsidiaries 55,301 58,453
* Due to a change in definitions, the 2008 figures have been adjusted.
11. Amortisation, depreciation and impairments

Property, plant & equipment 14 931 825
Intangible assets 15 152 381
1,083 1,206
Annual Report 2009 – Heineken N.V. 

12. Net finance expenses

Recognised in the income statement

Interest income on unimpaired loans and held-to-maturity investments 8 7
Interest income on available-for-sale investments 1 1
Interest income on cash and cash equivalents 81 83
Interest income 90 91
Interest expenses (633) (469)
Dividend income on available-for-sale investments 1 9

Dividend income on investments held for trading 10 –
Net gain/(loss) on disposal of available-for-sale investments 12 (1)
Net loss on disposal of investments held for trading – (1)
Net change in fair value of derivatives (7) (55)
Net foreign exchange loss (47) (45)
Impairment losses on held-to-maturity investments – (1)
Unwinding discount on provisions (3) (11)
Other net financial income/(expenses) 248 (2)
Other net finance income/(expenses) 214 (107)
Net finance expenses (329) (485)
Recognised in other comprehensive income

Foreign currency translation differences for foreign operations 112 (645)
Effective portion of changes in fair value of cash flow hedges (90) (105)
Effective portion of cash flow hedges transferred to the income statement 88 (59)
Net change in fair value of available-for-sale investments 26 (12)
Net change in fair value available-for-sale investments transferred to the
income statement (12) 1
Share of other comprehensive income of associates/joint ventures 22 (3)
146 (823)
Recognised in:
Fair value reserve 12 (11)
Hedging reserve (2) (167)
Translation reserve 136 (645)
146 (823)
In the other net finance expenses a total (net) book gain of EUR 248 million on the purchase of Globe debt
(Scottish & Newcastle Pub Enterprises) is included. Please refer to note 25 for a full overview of the effects
of the repurchase of Globe debt.
The increase of the impact of foreign currency translation differences for foreign operations in other
comprehensive income is mainly due to the impact of revaluation of the British pound on the net assets and
goodwill measured in British pounds of total EUR 145 million. Remaining impact is related to devaluation
of the Russian rouble, Belarussian rouble, Nigerian naira and US dollar, partly offset by the appreciation of
the Chilean peso.
 Annual Report 2009 – Heineken N.V.

13. Income tax expense
Recognised in the income statement

Current tax expense
Current year 360 352
Under/(over) provided in prior years 8 (25)
368 327
Deferred tax expense
Origination and reversal of temporary differences (84) 1
Previously unrecognised deductible temporary differences – (1)
Changes in tax rate – (2)
Utilisation/(benefit) of tax losses recognised 10 (78)
Under/(over) provided in prior years (8) 1
(82) (79)
Total income tax expense in the income statement 286 248
Reconciliation of the effective tax rate

Profit before income tax 1,428 595
Share of net profit of associates and joint ventures and impairments thereof (127) 102
Profit before income tax excluding share of profit of associates and joint
ventures (inclusive impairments thereof) 1,301 697
% 2009 % 2008
Income tax using the Company’s domestic tax rate 25.5 332 25.5 178
Effect of tax rates in foreign jurisdictions 1.6 21 2.3 16
Effect of non-deductible expenses 2.8 36 16.9 118
Effect of tax incentives and exempt income (8.2) (107) (9.2) (64)
Recognition of previously unrecognised temporary differences (0.1) (1) (0.1) (1)
Utilisation or recognition of previously unrecognised tax losses (0.5) (7) (0.3) (2)
Unrecognised current year tax losses 0.9 12 3.3 23
Effect of changes in tax rate – – (0.3) (2)
Withholding taxes 1.2 16 1.9 13
Under/(over) provided in prior years – – (3.4) (24)
Other reconciling items (1.2) (16) (1.0) (7)
22.0 286 35.6 248
The effective tax rate of the Company improved significantly in 2009. The rate dropped from 35.6 per cent to
22.0 per cent. In 2008 the tax effect relating to the EUR 275 million impairment on the goodwill of Russia was
included, as non-deductible expenses, whilst in 2009 the book gain on the purchase of the Globe Bonds (see
note 12 and 25) is included, as exempt income.
Income tax recognised in other comprehensive income

Changes in fair value 2 4
Changes in hedging reserve (4) 57
18 (2) 61
Annual Report 2009 – Heineken N.V. 

14. Property, plant and equipment
Land and Plant and Other fixed Under

In millions of EUR Note buildings equipment assets construction Total
Cost
Balance as at 1 January 2008 2,498 4,615 2,994 432 10,539
Changes in consolidation 887 333 326 86 1,632
Purchases 117 218 357 410 1,102
Transfer of completed projects under construction 74 250 101 (425) –
Transfer to/from assets classified as held for sale – 13 – (11) 2
Disposals (61) (117) (219) – (397)
Effect of movements in exchange rates (134) (143) (100) (35) (412)
Balance as at 31 December 2008 3,381 5,169 3,459 457 12,466
Balance as at 1 January 2009 3,381 5,169 3,459 457 12,466

Changes in consolidation 6 15 91 (9) 3 100
Purchases 45 110 232 291 678
Transfer of completed projects under construction 89 199 78 (366) –
Transfer to/from assets classified as held for sale 19 (39) (39) (3) (62)
Disposals (94) (122) (204) (68) (488)
Effect of movements in exchange rates 5 (71) 1 1 (64)
Balance as at 31 December 2009 3,460 5,337 3,518 315 12,630
Depreciation and impairment losses

Balance as at 1 January 2008 (1,221) (2,619) (2,026) – (5,866)
Changes in consolidation 28 49 11 – 88
Depreciation charge for the year 11 (81) (277) (383) – (741)
Impairment losses 11 (55) (31) (4) – (90)
Reversal impairment losses 11 2 3 1 – 6
Transfer to/from assets classified as held for sale (2) (2) – – (4)
Disposals 34 101 199 – 334
Effect of movements in exchange rates 13 56 52 – 121
Balance as at 31 December 2008 (1,282) (2,720) (2,150) – (6,152)
Balance as at 1 January 2009 (1,282) (2,720) (2,150) – (6,152)

Changes in consolidation 6 2 – 3 – 5
Depreciation charge for the year 11 (117) (286) (365) – (768)
Reversal impairment losses 11 1 16 1 – 18
Transfer to/from assets classified as held for sale 8 22 19 – 49
Disposals 62 169 166 – 397
Effect of movements in exchange rates 2 19 (2) – 19
Balance as at 31 December 2009 (1,405) (2,875) (2,333) – (6,613)
Carrying amount
As at 1 January 2008 1,277 1,996 968 432 4,673
As at 31 December 2008 2,099 2,449 1,309 457 6,314
As at 1 January 2009 2,099 2,449 1,309 457 6,314
As at 31 December 2009 2,055 2,462 1,185 315 6,017
Impairment losses
In 2009 a total impairment loss of EUR 181 million (2008: EUR 90 million) was charged to the income statement.
These impairment losses include EUR 67 million of impairments of pubs in the UK. These impairments were
triggered by a persisting market decline in the pub market and was determined by making use of market
multiples. The remaining impairments mainly relate to restructurings in France, Finland, Ireland, Russia
and Romania.
 Annual Report 2009 – Heineken N.V.

Security to authorities
Property, plant & equipment totaling EUR 27 million (2008: EUR 70 million) has been pledged to the authorities in
a number of countries as security for the payment of taxation, particularly excise duties on beers, non-alcoholic
beverages and spirits and import duties.
Property, plant and equipment under construction

Property, plant & equipment under construction mainly relates to expansion of the brewing capacity in the
Netherlands, UK, Russia and Poland.
During 2009 no borrowing costs were capitalised (refer to the change in accounting policies, note 3b).
15. Intangible assets
Customer-
related and Software,
contract- research and
based development
In millions of EUR Note Goodwill* Brands intangibles and other Total*
Cost
Balance as at 1 January 2008 1,896 237 – 162 2,295
Changes in consolidation 4,079 1,239 327 41 5,686
Purchases/internally developed – 1 108 49 158
Disposals – (1) – (4) (5)
Effect of movements in exchange rates (371) (144) (16) (23) (554)
Balance as at 31 December 2008 5,604 1,332 419 225 7,580
Balance as at 1 January 2009 5,604 1,332 419 225 7,580

Changes in consolidation 6 34 4 31 1 70
Purchases/internally developed – 9 19 71 99
Disposals – (7) – (47) (54)
Transfers to assets held for sale – – – (2) (2)
Effect of movements in exchange rates 75 44 6 11 136
Balance as at 31 December 2009 5,713 1,382 475 259 7,829
Amortisation and impairment losses

Balance as at 1 January 2008 (14) (41) – (130) (185)
Amortisation charge for the year 11 – (30) (42) (34) (106)
Impairment losses 11 (275) – – – (275)
Disposals – – – 4 4
Effect of movements in exchange rates (1) 3 2 8 12
Balance as at 31 December 2008 (290) (68) (40) (152) (550)
Balance as at 1 January 2009 (290) (68) (40) (152) (550)

Amortisation charge for the year 11 – (36) (61) (30) (127)
Transfers to assets held for sale – – – 2 2
Disposals (1) – – 5 4
Effect of movements in exchange rates 12 – (3) (7) 2
Balance as at 31 December 2009 (280) (108) (124) (182) (694)
Carrying amount
As at 1 January 2008 1,882 196 – 32 2,110
As at 31 December 2008 5,314 1,264 379 73 7,030
As at 1 January 2009 5,314 1,264 379 73 7,030
As at 31 December 2009 5,433 1,274 351 77 7,135
* The opening balance of goodwill has been adjusted with EUR (79) million due to the finalisation of the purchase price accounting of the Scottish &
Newcastle acquisition (see note 6).
Annual Report 2009 – Heineken N.V. 

15. Intangible assets continued

Brands and customer-related/contract-based intangibles
The main brands capitalised are the brands acquired in 2008: Fosters, Strongbow and Sagres. The main
customer-related and contract-based intangibles were acquired in 2008 and are related to customer
relationships with pubs or retailers in the UK, Finland and Portugal (constituting either by way of a contractual
agreement or by way of non-contractual relations) and the licence agreement with FEMSA Cerveza (extended
in 2008 for 10 years).
Of the total amortisation charge of EUR 61 million (2008: EUR 42 million) for customer-related and contract-
based intangibles EUR 43 million (2008: EUR 33 million) is related to customer-related intangibles and
EUR 18 million (2008: EUR 9 million) to contract-based intangibles.
Capitalised borrowing costs

During 2009 no borrowing costs were capitalised (refer to the change in accounting policies, note 3b).
Impairment tests for cash-generating units containing goodwill

The aggregate carrying amounts of goodwill allocated to each cash-generating unit are as follows:

Western Europe 3,282 3,141
Central and Eastern Europe (excluding Russia) 1,467 1,479
Russia 99 104
The Americas 349 356
Africa and the Middle East 236 234
5,433 5,314
Goodwill in respect of Western Europe, Central and Eastern Europe (excluding Russia) and the Americas is
monitored on a regional basis for the purpose of impairment testing. In respect of operating companies that are
less integrated in the other regions and Russia, goodwill is monitored on an individual country basis.
Throughout the year total goodwill mainly increased due to net foreign currency gains.
Goodwill is tested for impairments annually. The recoverable amounts of the cash-generating units are based
on value in use calculations. Value in use was determined by discounting the future pre-tax cash flows
generated from the continuing use of the unit using a pre-tax discount rate.
The key assumptions used for the value in use calculations are as follows:
• Cash flows were projected based on actual operating results and the three-year business plan. Cash flows for
a further seven-year period were extrapolated using expected annual per country volume growth rates,
which are based on external sources. Management believes that this forecasted period is justified due to the
long-term nature of the beer business and past experiences.
• The beer price growth per year after the first three-year period is assumed to be at specific per country
expected annual long-term inflation, based on external sources.
• Cash flows after the first ten-year period were extrapolated using expected annual long-term inflation, based
on external sources, in order to calculate the terminal recoverable amount.
• A per cash-generating unit specific pre-tax Weighted Average Cost of Capital (WACC) was applied in
determining the recoverable amount of the units. The WACC’s used are presented in the table on the
following page, accompanied by the expected volume growth rates and the expected long-term inflation:
 Annual Report 2009 – Heineken N.V.

Expected volume
Pre-tax Expected annual growth rates
WACC long-term inflation 2013-2019
Western Europe 10.17% 1.7% (0.14)%
Central and Eastern Europe (excluding Russia) 11.74% 2.4% 2.48%
Russia 16.28% 7.13% 2.9%
The Americas 10.1-11.54% 3.0-7.87% 0.84-2.85%
Africa and Middle East 14.9-20.04% 3.31-7.97% 3.57-3.96%
The values assigned to the key assumptions represent management’s assessment of future trends in the beer
industry and are based on both external sources and internal sources (historical data).
A limited change in key assumptions will not lead to a materially different outcome.
16. Investments in associates and joint ventures

Heineken has the following significant investments in associates and joint ventures:
Ownership Ownership
Country 2009 2008
Joint ventures
Brau Holding International GmbH & Co KgaA Germany 49.9% 49.9%
Zagorka Brewery A.D. Bulgaria 49.0% 49.0%
Brewinvest S.A. Greece 50.0% 50.0%
Pivara Skopje A.D. Macedonia 27.6% 27.6%
Brasseries du Congo S.A. Congo 50.0% 50.0%
Asia Pacific Investment Pte. Ltd. Singapore 50.0% 50.0%
Asia Pacific Breweries Ltd. Singapore 41.9% 41.9%
Compania Cervecerias Unidas S.A. Chile 33.1% 33.1%
Tempo Beverages Ltd. Israel 40.0% 40.0%
Heineken Lion Australia Pty. Australia 50.0% 50.0%
Sirocco FZCo Dubai 50.0% 50.0%
Diageo Heineken Namibia B.V. Namibia 50.0% 50.0%
United Breweries Limited India 37.5% 37.5%
Millenium Alcobev Private Limited* India 68.8% 68.8%
DHN Drinks (Pty) Ltd. South Africa 44.5% 44.5%
Sedibeng Brewery Pty Ltd.* South Africa 75.0% 75.0%
Associates
Cervecerias Costa Rica S.A. Costa Rica 25.0% 25.0%
Brasserie Nationale d’Haïti S.A. Haiti 23.3% 23.3%
JSC FE Efes Karaganda Brewery Kazakhstan 28.0% 28.0%
* Heineken has joint control as the contract and ownership details determine that for certain main operating and financial decisions unanimous
approval is required. As a result these investments are not consolidated.
Reporting date
The reporting date of the financial statements of all Heineken entities and joint ventures disclosed are the
same as for the Company except for (i) Asia Pacific Breweries Ltd., Heineken Lion Australia Pty. and Asia
Pacific Investment Pte. Ltd which have a 30 September reporting date (the APB results are included with
a three months delay in reporting), (ii) DHN Drinks (Pty) Ltd. which has a 30 June reporting date, and (iii) United
Breweries Limited (UBL) and Millenium Alcobev Private Limited (MAPL) which have a 31 March reporting
date. The results of (ii) and (iii) have been adjusted to include numbers for the full financial year ended
31 December 2009.
Annual Report 2009 – Heineken N.V. 

16. Investments in associates and joint ventures continued

Shareholdings India
In March 2008, the joint venture partners of Heineken in UBL filed legal proceedings in India against various
Scottish & Newcastle (S&N), Heineken and Carlsberg entities claiming that the rights enjoyed by Scottish &
Newcastle India Private Limited (the entity through which Heineken holds its investment in UBL) in a shareholders’
agreement relating to UBL and the Articles of Association of UBL are personal to S&N and do not survive the
takeover of S&N by Sunrise Acquisitions Limited in April 2008. On 7 December 2009, Heineken and its joint
venture partners in UBL settled their disputes and legal proceedings in India were withdrawn. Also on that date,
Heineken and its joint venture partners in UBL entered into a new shareholders agreement pursuant to which
Heineken appointed board members and has access to financial information relating to UBL. This information
has been used to finalise the S&N purchase price allocation and to adjust the financial information reported
under Indian GAAP to comply with Heineken’s accounting policies.
Share of profit of associates and joint ventures and impairments thereof

Income associates 7 18
Income joint ventures 120 94
Impairments – (214)
127 (102)
In 2009 no impairments were recognised in respect of associates and JVs (2008: EUR 200 million related to our
Indian investments in UBL and MAPL and EUR 14 million taken by APB).
Summary financial information for equity-accounted joint ventures
Joint ventures Joint ventures*

Non-current assets 1,375 1,197
Current assets 681 622
Non-current liabilities (430) (365)
Current liabilities (631) (659)
995 795
Revenue 1,540 1,564

Expenses (1,377) (1,388)
163 176
* Including S&N shareholdings in India.
 Annual Report 2009 – Heineken N.V.

17. Other investments

Non-current other investments
Loans 32 329 310
Held-to-maturity investments 32 4 10
Available-for-sale investments 32 219 221
Non-current derivatives used for hedge accounting 32 16 100
568 641
Current other investments

Investments held for trading 32 15 14
15 14
Included in loans are loans to customers with a carrying amount of EUR 150 million as at 31 December 2009
(2008: EUR 190 million). Effective interest rates range from 3 to 11 per cent. EUR 145 million (2008:
EUR 182 million) matures between one and five years and EUR 5 million (2008: EUR 8 million) after five years.
The main available-for sale-investments are Consorcio Cervecero de Nicaragua S.A., Desnoes & Geddes Ltd. and
Cervejarias Kaiser Brasil S/A (‘Kaiser’). As far as these investments are listed they are measured at their quoted
market price. For others the value in use or multiples is used. Debt securities (which are interest-bearing) with
a carrying amount of EUR 21 million (2008: EUR 23 million) are included in available-for-sale investments.
Sensitivity analysis – equity price risk

An amount of EUR 57 million as at 31 December 2009 (2008: EUR 47 million) of available-for-sale investments
and investments held for trading is listed on stock exchanges. A 1 per cent increase in the share price at the
reporting date would have increased equity by EUR 1 million (2008: EUR 1 million); an equal change in the
opposite direction would have decreased equity by EUR 1 million (2008: EUR 1 million).
Annual Report 2009 – Heineken N.V. 

18. Deferred tax assets and liabilities

Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following items:
Assets Liabilities Net

In millions of EUR 2009 2008* 2009 2008* 2009 2008*
Property, plant & equipment 55 33 (385) (371) (330) (338)
Intangible assets 41 43 (310) (324) (269) (281)
Investments 15 2 (6) (27) 9 (25)
Inventories 17 10 (6) (5) 11 5
Loans and borrowings 1 1 – – 1 1
Employee benefits 92 85 24 32 116 117
Provisions 92 64 – – 92 64
Other items 111 (4) (103) 34 8 30
Tax losses carry-forwards 137 128 – – 137 128
Net tax assets/(liabilities) 561 362 (786) (661) (225) (299)
* The closing balance of deferred tax assets has been adjusted with EUR 103 million and deferred tax liabilities with EUR 24 million due to the
finalisation of the purchase price accounting of the Scottish & Newcastle acquisition (see note 6).
Tax losses carry-forwards

Heineken has losses carry-forwards for an amount of EUR 983 million as at 31 December 2009
(2008: EUR 1,157 million), which expire in the following years:

2009 – 12
2010 11 11
2011 16 16
2012 11 8
2013 18 22
2014 18 –
After 2014 respectively 2013 but not unlimited 91 151
Unlimited 818 937
983 1,157
Recognised as deferred tax assets gross (479) (470)
Unrecognised 504 687
 Annual Report 2009 – Heineken N.V.

Movement in deferred tax on temporary differences during the year
Effect of
Balance movements Balance
1 January Changes in in foreign Recognised Recognised 31 December
In millions of EUR 2008 consolidation* exchange in income in equity 2008*
Property, plant & equipment (349) 11 20 (20) – (338)
Intangible assets 20 (256) – (45) – (281)
Investments 1 (27) (1) 1 1 (25)
Inventories 15 (2) (2) (6) – 5
Loans and borrowings – 1 1 – (1) 1
Employee benefits 113 46 (1) (41) – 117
Provisions 49 (59) (1) 75 – 64
Other items 26 (141) 47 37 61 30
Tax losses carry-forwards 14 42 (6) 78 – 128
Net tax assets/(liabilities) (111) (385) 57 79 61 (299)
* The (net) closing balance has been adjusted with EUR (79) million due to the finalisation of the purchase price accounting of the Scottish &
Newcastle acquisition (see note 6).
Effect of
Balance movements Balance
1 January Changes in in foreign Recognised Recognised 31 December
In millions of EUR 2009 consolidation exchange in income in equity Transfers 2009
Property, plant & equipment (338) (3) 10 (3) – 4 (330)
Intangible assets (281) (1) (4) 49 – (32) (269)
Investments (25) – (2) 34 2 – 9
Inventories 5 – – 6 – – 11
Loans and borrowings 1 – – – – – 1
Employee benefits 117 1 3 (4) – (1) 116
Provisions 64 (4) (4) – – 36 92
Other items 30 1 (4) 10 (4) (25) 8
Tax losses carry-forwards 128 – 6 (10) – 13 137
Net tax assets/(liabilities) (299) (6) 5 82 (2) (5) (225)
Annual Report 2009 – Heineken N.V. 

19. Inventories

Raw materials 170 239
Work in progress 132 134
Finished products 140 245
Goods for resale 269 261
Non-returnable packaging 107 144
Other inventories 192 223
1,010 1,246
During 2009 and 2008 no write-down of inventories to net realisable value was required.
20. Trade and other receivables

Trade receivables due from associates and joint ventures 78 60
Trade receivables 1,730 1,890
Other receivables 453 451
Derivatives used for hedge accounting 49 103
32 2,310 2,504
A net impairment loss of EUR 64 million (2008: EUR 21 million) in respect of trade and other receivables was
included in expenses for raw materials, consumables and services.
21. Cash and cash equivalents

Bank balances 482 475
Call deposits 38 223
Bank overdrafts 25 (156) (94)
Cash and cash equivalents in the statement of cash flows 364 604
 Annual Report 2009 – Heineken N.V.

22. Capital and reserves
Share capital
Ordinary shares
On issue as at 1 January 784 784
Issued for cash – –
On issue as at 31 December 784 784
As at 31 December 2009 the issued share capital comprised 489,974,594 ordinary shares (2008: 489,974,594). The
ordinary shares have a par value of EUR 1.60. All issued shares are fully paid.
The Company’s authorised capital amounts to EUR 2.5 billion, comprising of 1,562,500,000 shares.
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 N.V.
(see next page), 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 Group (excluding amounts attributable to minority interests) as well as
value changes of the hedging instruments in the net investment hedges. Heineken considers this a legal reserve.
Hedging reserve
This reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging
instruments where the hedged transaction has not yet occurred. Heineken considers this a legal reserve.
Fair value reserve

This reserve comprises the cumulative net change in the fair value of available-for-sale investments until the
investment is derecognised or impaired. Heineken considers this a legal reserve.
Other legal reserves

These reserves relate to the share of profit of joint ventures and associates over the distribution of which
Heineken does not have control. The movement in these reserves reflects retained earnings of joint ventures
and associates minus dividends received. In case of a legal or other restriction which causes that retained
earnings of subsidiaries cannot be freely distributed, a legal reserve is recognised for the restricted part.
Reserve for own shares

The reserve for the Company’s own shares comprises the cost of the Company’s shares held by Heineken. As at
31 December 2009 Heineken held 1,251,201 of the Company’s shares (2008: 1,044,233).
Annual Report 2009 – Heineken N.V. 

22. Capital and reserves continued

Dividends
The following dividends were declared and paid by Heineken:

Final dividend previous year EUR 0.34, respectively EUR 0.46
per qualifying ordinary share 167 226
Interim dividend current year EUR 0.25, respectively EUR 0.28
per qualifying ordinary share 122 137
Total dividend declared and paid 289 363
After the balance sheet date the Executive Board proposed the following dividends. The dividends, taken into
account the interim dividends declared and paid, have not been provided for.

EUR 0.65 per qualifying ordinary share (2008: EUR 0.62) 318 304
23. Earnings per share

Basic earnings per share
The calculation of basic earnings per share as at 31 December 2009 is based on the profit attributable to
ordinary shareholders of the Company (net profit) of EUR 1,018 million (2008: EUR 209 million) and a weighted
average number of ordinary shares – basic outstanding during the year ended 31 December 2009 of
488,666,607 (2008: 488,930,340). Basic earnings per share for the year amounts to EUR 2.08 (2008: EUR 0.43).
Weighted average number of shares – basic
In shares 2009 2008

Number of shares – basic – as at 1 January 488,930,361 489,174,594
Effect of own shares held (263,754) (244,254)
Weighted average number of shares – basic – as at 31 December 488,666,607 488,930,340
Diluted earnings per share

The calculation of diluted earnings per share as at 31 December 2009 was based on the profit attributable to
ordinary shareholders of the Company (net profit) of EUR 1,018 million (2008: EUR 209 million) and a weighted
average number of ordinary shares – basic outstanding after adjustment for the effects of all dilutive potential
ordinary shares of 489,974,594 (2008: 489,974,594). Diluted earnings per share for the year amounted to
EUR 2.08 (2008: EUR 0.43).
 Annual Report 2009 – Heineken N.V.

24. Income tax on other comprehensive income
2009 2008
Amount Amount Amount Amount

In millions of EUR before tax Tax net of tax before tax Tax net of tax
Other comprehensive income
Foreign currency translation differences
for foreign operations 112 – 112 (645) – (645)
Effective portion of changes in fair value
of cash flow hedge (121) 31 (90) (146) 41 (105)
Effective portion of cash flow hedges
transferred to the income statement 117 (29) 88 (75) 16 (59)
Net change in fair value available-for-sale
investments 34 (8) 26 (16) 4 (12)
Net change in fair value available-for-sale
investments transferred to the income
statement (16) 4 (12) 1 – 1
Share of other comprehensive income
of associates/joint ventures 22 – 22 (3) – (3)
Total other comprehensive income 148 (2) 146 (884) 61 (823)
25. Loans and borrowings

This note provides information about the contractual terms of Heineken’s interest-bearing loans and
borrowings. For more information about Heineken’s exposure to interest rate risk and foreign currency risk,
see note 32.
Non-current liabilities

Secured bank loans 179 381
Unsecured bank loans 2,958 6,444
Unsecured bond issues 2,445 1,104
Finance lease liabilities 26 89 82
Other non-current interest-bearing liabilities 1,267 664
Non-current interest-bearing liabilities 6,938 8,675
Non-current non-interest-bearing liabilities 93 16
Non-current derivatives used for hedge accounting 370 393
7,401 9,084
Annual Report 2009 – Heineken N.V. 

25. Loans and borrowings continued

Current interest-bearing liabilities

Current portion of secured bank loans 96 139
Current portion of unsecured bank loans 78 351
Current portion of unsecured bond issues 500 18
Current portion of finance lease liabilities 26 19 13
Current portion of other interest-bearing liabilities 75 6
Total current portion of non-current interest-bearing liabilities 768 527
Deposits from third parties 377 348
1,145 875
1,301 969
Net interest-bearing debt position

Current portion of non-current interest-bearing liabilities 768 527
Deposits from third parties 377 348
8,083 9,550
8,239 9,644
Cash, cash equivalents and current other investments (535) (712)
Net interest-bearing debt position 7,704 8,932
Non-current
Other derivatives Non-current
Finance non-current used for non-interest-
Secured Unsecured Unsecured lease interest-bearing hedge bearing
In millions of EUR bank loans bank loans bond issues liabilities liabilities accounting liabilities Total
Balance as at
1 January 2009 381 6,444 1,104 82 664 393 16 9,084
Consolidation changes – – – 11 – – – 11
Effect of movements
in exchange rates 17 124 – 4 (141) 53 19 49
Transfers 27 (611) (498) (3) 929 (65) 19 (202)
Charge to/from profit or
loss i/r derivatives – – – – – 1 – 1
Charge to/from equity
i/r derivatives – – – – – (12) 7 (5)
Proceeds 18 122 1,844 – 45 – 23 2,052
Repayments (47) (3,121) (13) (5) (224) – (1) (3,411)
Other (217) – 8 – (6) – 10 (205)
Balance as at
31 December 2009 179 2,958 2,445 89 1,267 370 93 7,401
 Annual Report 2009 – Heineken N.V.

Terms and debt repayment schedule
Terms and conditions of outstanding non-current and current loans and borrowings were as follows:
Nominal Carrying amount Face value Carrying amount Face value

In millions of EUR Currency interest rate % Repayment 2009 2009 2008 2008
Secured bank loans GBP 1.4-6.0 2011-2017 234 234 470 485
Secured bank loans various various various 41 41 50 50
Unsecured bank loans EUR 4.4 2009 – – 125 125
Unsecured bank loans EUR 1.6 2013 1,700 1,709 2,403 2,416
Unsecured bank loans EUR 0.3-5.0 2010-2016 486 486 435 435
Unsecured bank loans EUR 2.7-6.2 2017 111 111 – –
Unsecured bank loans EUR 2.4-6.0 2014 102 102 – –
Unsecured bank loans EUR 2.5-6.0 2015 207 207 418 418
Unsecured bank loans GBP 1.0 2013 329 329 504 504
Unsecured bank loans PLN 3.7-3.9 2011 61 61 53 53
Unsecured bank loans USD 5.4 2012 – – 118 118
Unsecured bank loans USD various various – – 73 73
Unsecured bank loans various various various 40 40 325 325
Unsecured bank issues GBP 7.3 2015 442 450 – –
Unsecured bank issues EUR 4.3 2010 500 500 500 500
Unsecured bank issues EUR 5.0 2013 598 600 598 600
Unsecured bond issues EUR 7.1 2014 996 1,000 – –
Unsecured bond issues EUR 4.6 2016 397 400 – –
Unsecured bond issues various various various 12 12 24 24
Other interest-bearing liabilities GBP 5.6 2033 – – 162 204
Other interest-bearing liabilities USD 5.4-5.6 2012-2015 778 729 – –
Other interest-bearing liabilities USD 5.9-6.3 2015-2018 306 307 280 280
Other interest-bearing liabilities USD 1.6-2.0 2010-2012 100 100 – –
Other interest-bearing liabilities various various various 158 158 228 251
Deposits from third parties various various various 377 377 348 348
Finance lease liabilities various various various 108 108 95 95
8,083 8,061 9,550 9,659
As at 31 December 2009, no amount was drawn on the existing revolving credit facility of EUR 2 billion. This
revolving credit facility matures in 2012. Interest is based on EUR IBOR plus a margin.
Annual Report 2009 – Heineken N.V. 

25. Loans and borrowings continued

EMTN Programme
In February 2009, the Company placed 6-year Sterling Notes for a principal amount of GBP400 million with
a coupon of 7.25 per cent. In March 2009, the Company placed 5-year Euro Notes for a principal amount of
EUR 1 billion with a coupon of 7.125 per cent. In October 2009 Heineken has placed 7-year Euro Notes for a
principal amount of EUR 400 million with a coupon of 4.625 per cent.
These Notes were issued under the Euro Medium Term Note Programme (‘EMTN’) and are listed on the
Luxembourg Stock Exchange. The proceeds of these notes have been used to partially refinance bank credit
facilities related to the Scottish & Newcastle acquisition and for general corporate purposes.
Globe
On 17 April 2009, the Company acquired 30.1 per cent of Class A1 Notes issued by Globe Pub Issuer plc (‘Globe’),
representing a face value of GBP 60.2 million. In May 2009 the Company acquired a further 55.6 per cent of Class
A1 Notes representing a face value of GBP 111.2 million. As at 29 October 2009 the Company owned 92.8 per cent
of Class A1 Notes representing a face value of GBP 175 million. In addition, the Company acquired 31.6 per cent
of Class B1 Notes issued by Globe representing a face value of GBP 18 million, a 23.9 per cent participation in the
syndicated bank debt of Globe Pub Management Limited (‘GPM’) being GBP 55 million out of an aggregate of
GBP 230 million, and assumed the economic interest of the counterparty of GPM in an interest rate swap
transaction. The swap was entered into in 2006 when the floating interest rate in relation to the syndicated bank
debt was swapped for a fixed interest rate.
The Company purchased the Notes and syndicated bank debt at a substantial discount to face value. As Globe
is part of the Group as at 28 April 2008, the net debt of Globe is included in the consolidated statement
of financial position of the Group and therefore, the acquisition of debt of Globe at a discount, results in a
reduction of the Group’s total net debt position and a realisation of a net book gain as explained in note 12. On
29 October 2009, Heineken agreed to supply beer and management services to EBP Pub Company Limited (EBP),
a company controlled by FEOH Investments Limited (FEOH), which acquired the tenanted pub estate (the Estate)
from Globe Tenanted Pub Company (GTP). The proceeds of the sale to EBP have been used principally to repay
the Class A1 Notes which partially funded GTP. Also on this date, Heineken entered into a conditional sale
agreement with FEOH pursuant to which it is anticipated that Heineken will acquire full ownership of EBP later
in 2010.
On 23 December 2009, Heineken acquired the remaining syndicated bank debt of GPM at a discount to the
GBP 175 million (EUR 195 million) face value. As a result of the acquisition, Heineken acquired all of the
syndicated bank debt of GPM with a face value of GBP 230 million (EUR 256 million) and no longer has any
outstanding debt relating to Globe on its balance sheet.
 Annual Report 2009 – Heineken N.V.

26. Finance lease liabilities
Finance lease liabilities are payable as follows:
Present Present
Future value of Future value of
minimum minimum minimum minimum
lease lease lease lease
payments Interest payments payments Interest payments
In millions of EUR 2009 2009 2009 2008 2008 2008
Less than one year 22 (3) 19 19 (5) 14
Between one and five years 76 (9) 67 62 (12) 50
More than five years 23 (1) 22 35 (4) 31
121 (13) 108 116 (21) 95
27. EBIT and EBIT (beia)

EBIT is defined as results from operating activities plus share of profit of associates and JVs including
impairments thereof. EBIT (beia) is defined as results from operating activities plus share of profit of
associates and JVs including impairments thereof, before exceptional items and amortisation of brands
and customer relationships.
Exceptional items are defined as items of income and expense of such size, nature or incidence, that in view
of management their disclosure is relevant to explain the performance of Heineken for the period.
Exceptional items and amortisation of brands and customer relationships for 2009 on EBIT level amounted to
EUR 338 million (2008: EUR 852 million) and can be explained as follows. In personal expenses EUR 63 million
(2008: EUR 166 million) exceptional items are included relating to restructuring costs due to redundancies
following brewery closures and other TCM cost saving initiatives in Heineken UK, Heineken Spain, Finland and
France. Exceptional items included in impairments of P, P & E amount to EUR 140 million (2008: EUR 81million)
and include the impairment of pubs in the UK (EUR 68 million) and the above brewery closures (EUR 72 million).
In addition EUR 36 million (2008: EUR 50 million) is included in other expenses.
The amortisation of brands and customer relationships amounted to EUR 79 million (2008: EUR 63 million).
Impairments relating to contract-based intangibles amount to EUR 20 million (2008: EUR 275 million). Included
in 2008 was the impairment of goodwill relating to Russia (EUR 275 million).
EBIT and EBIT (beia) are not financial measures calculated in accordance with IFRS. The presentation on these
financial measures may not be comparable to similarly titled measures reported by other companies due to
differences in the ways the measures are calculated.
Annual Report 2009 – Heineken N.V. 

28. Employee benefits

Present value of unfunded obligations 198 266
Present value of funded obligations 5,738 4,697
Total present value of obligations 5,936 4,963
Fair value of plan assets (4,858) (4,231)
Present value of net obligations 1,078 732
Actuarial (losses)/gains not recognised (548) (143)
Recognised liability for defined benefit obligations 530 589
Other long-term employee benefits 104 99
634 688
Plan assets comprise:

Equity securities 2,195 1,593
Government bonds 2,119 1,955
Properties and real estate 385 333
Other plan assets 159 350
4,858 4,231
Liability for defined benefit obligations

Heineken makes contributions to a number of defined benefit plans that provide pension benefits for employees
upon retirement in a number of countries being mainly: the Netherlands, the UK, Greece, Austria, Italy, France,
Spain and Nigeria. In other countries the pension plans are defined contribution plans and/or similar
arrangements for employees.
Other long-term employee benefits mainly relate to long-term bonus plans, termination benefits and
jubilee benefits.
Movements in the present value of the defined benefit obligations

Defined benefit obligations as at 1 January 4,963 2,858
Changes in consolidation and reclassification (6) 2,973
Effect of movements in exchange rates 153 (494)
Benefits paid (255) (199)
Current service costs and interest on obligation (see below) 363 333
Past service costs 12 5
Effect of any curtailment or settlement (16) (18)
Actuarial (gains)/losses 722 (495)
Defined benefit obligations as at 31 December 5,936 4,963
 Annual Report 2009 – Heineken N.V.

Movements in the present value of plan assets

Fair value of plan assets as at 1 January 4,231 2,535
Changes in consolidation and reclassification (5) 2,737
Contributions paid into the plan 157 177
Benefits paid (255) (199)
Expected return on plan assets 252 241
Actuarial gains/(losses) 318 (810)
Fair value of plan assets as at 31 December 4,858 4,231
Actual return on plan assets 570 (569)
Expense recognised in the income statement

Current service costs 70 75
Interest on obligation 293 258
Expected return on plan assets (252) (241)
Actuarial gains and losses recognised – (1)
Past service costs 12 5
Effect of any curtailment or settlement (16) (18)
10 107 78
Principal actuarial assumptions as at the balance sheet date

The defined benefit plans in The Netherlands and the UK cover 88.8 per cent of the present value of the
plan assets (2008: 88.6 per cent), 86.3 per cent of the present value of the defined benefit obligations (2008:
83.5 per cent) and 75.1 per cent of the deficit in the plans as at 31 December 2009 (2008: 54.3 per cent). For the
Netherlands and the UK the following actuarial assumptions apply as at 31 December 2009:
The Netherlands UK
2009 2008 2009 2008
Discount rate as at 31 December 5.3 5.6 5.7 6.7
Expected return on plan assets as at 1 January 6.3 5.9 6.3 5.7
Future salary increases 3 3 4.8 4
Future pension increases 1.5 1.5 3 2.8
Medical cost trend rate – – 7 7
Annual Report 2009 – Heineken N.V. 

28. Employee benefits continued

Principal actuarial assumptions as at the balance sheet date continued
For the other defined benefit plans the following actuarial assumptions apply as at 31 December 2009:
Other Western,
Central and Eastern Africa and the
Europe The Americas Middle East Asia Pacific
2009 2008 2009 2008 2009 2008 2009 2008
Discount rate as at 31 December 3.3-5.6 4.5-6.2 5.3-7 5.5-6.5 11 12 – 2.5-12
Expected return on plan assets as
at 1 January 3.5-6.6 4.5-7 6.5 6.5 11 4.6 – 2.5-8
Future salary increases 1.5-3.5 2.9-12 2.5-5.5 0.5-5.5 11 11 – 3-10
Future pension increases 1-3 1.5-5 – 3.5 11 – – 8
Medical cost trend rate 3.5-4.5 1.5 5 5 10 – – –
Assumptions regarding future mortality rates are based on published statistics and mortality tables. The overall
expected long-term rate of return on assets is 6.1 per cent (2008: 6.0 per cent), which is based on the asset mix
and the expected rate of return on each major asset class, as managed by the pension funds.
Assumed healthcare cost trend rates have nihil effect on the amounts recognised in the income statement.
A one percentage point change in assumed healthcare cost trend rates would not have any effect on the income
statement neither on the statement of financial position as at 31 December 2009.
The Group expects the 2010 contributions to be paid for the defined benefit plans to be approximately 20 per
cent higher than in 2009.
Historical information
In millions of EUR 2009 2008 2007 2006

Present value of the defined benefit obligation 5,936 4,963 2,858 2,984
Fair value of plan assets (4,858) (4,231) (2,535) (2,397)
Deficit in the plan 1,078 732 323 587
Experience adjustments arising on plan liabilities, losses/(gains) (116) 71 (4) (159)

Experience adjustments arising on plan assets, (losses)/gains 313 (817) 16 9
 Annual Report 2009 – Heineken N.V.

29. Share-based payments – Long-Term Incentive Plan
As from 1 January 2005 Heineken established a performance-based share plan (Long-Term Incentive Plan; LTIP)
for the Executive Board. As from 1 January 2006 a similar LTIP was established for senior management.
The LTIP for the Executive Board includes share rights, which are conditionally awarded to the Executive Board
each year and are subject to Heineken’s Relative Total Shareholder Return (RTSR) performance in comparison
with the TSR performance of a selected peer group.
The LTIP share rights conditionally awarded to senior management each year are for 25 per cent subject
to Heineken’s RTSR performance and for 75 per cent subject to internal performance conditions.
At target performance, 100 per cent of the shares will vest. At maximum performance 150 per cent of the
shares will vest.
The performance period for share rights granted in 2007 was from 1 January 2007 to 31 December 2009.
The performance period for share rights granted in 2008 is from 1 January 2008 to 31 December 2010. The
performance period for share rights granted in 2009 is from 1 January 2009 to 31 December 2011.
The vesting date for the Executive Board is within five business days, and for senior management the latest
of 1 April and 20 business days, after the publication of the annual results of 2009, 2010 and 2011 respectively.
As Heineken N.V. will withhold the tax related to vesting on behalf of the individual employees, the amount
of Heineken N.V. shares to be received by the Executive Board and senior management will be a net amount.
The terms and conditions of the share rights granted are as follows:
Based on Contractual
Grant date/employees entitled Number* share price Vesting conditions life of rights
Share rights granted to Continued service and
Executive Board in 2007 32,265 36.03 RTSR performance 3 years
Share rights granted to senior Continued service, 75% internal performance
management in 2007 281,400 36.03 conditions and 25% RTSR performance 3 years
1,219,856
* The number of shares is based on target performance.
Annual Report 2009 – Heineken N.V. 

Based on RTSR and internal performance, it is expected that approximately 253,000 shares will vest in 2010.
The expenses relating to these expected additional grants are recognised in the income statement during the
performance period.
The number and weighted average share price per share is as follows:
Weighted average Number of Weighted average Number of

share price 2009 share rights share price 2008 share rights
in EUR 2009 in EUR 2008
Outstanding as at 1 January 37.48 905,537 30.10 696,616
Granted during the year 21.90 615,945 44.22 290,246
Forfeited during the year – (74,813) – (40,581)
Vested during the year – (292,921) – (40,744)
Outstanding as at 31 December 31.17 1,153,748 37.48 905,537
The 292,921 (gross) shares vested in 2009 are related to the 2006-2008 LTIP of senior management. No vesting
occurred under the 2006-2008 LTIP of the Executive Board.
The fair value of services received in return for share rights granted is based on the fair value of shares granted,
measured using the Monte Carlo model, with following inputs:
Senior Senior
Executive Executive Management Management
In EUR Board 2009 Board 2008 2009 2008
Fair value at grant date 512,359 411,670 8,478,659 7,409,515
Expected volatility 22.8% 18.4% 22.8% 18.4%
Expected dividends 2.1% 1.7% 2.1% 1.7%
Personnel expenses

Share rights granted in 2006 – 3
Share rights granted in 2007 3 4
Share rights granted in 2008 3 4
Share rights granted in 2009 4 –
Total expense recognised as personnel expenses 10 10 11
30. Provisions
Onerous
In millions of EUR Note Restructuring contracts Other Total
Balance as at 1 January 2009 180 65 257 502
Changes in consolidation 6 – – 1 1
Provisions made during the year 98 2 91 191
Provisions used during the year (88) (9) (35) (132)
Provisions reversed during the year (18) – (44) (62)
Effect of movements in exchange rates (2) (3) 20 15
Unwinding of discounts 1 – 2 3
Balance as at 31 December 2009 171 55 292 518
Non-current 66 47 243 356

Current 105 8 49 162
171 55 292 518
 Annual Report 2009 – Heineken N.V.

Restructuring
The provision for restructuring of EUR 171 million mainly relates to restructuring programmes in Spain and
the UK. Provisions made during the year are mostly related to TCM. These restructuring expenses have been
included in the personnel expenses (see note 10).
Other provisions
Included are, amongst others, surety provided EUR 61 million (2008: EUR 28 million), litigations and claims
EUR 50 million (2008: EUR 59 million) and environmental provisions EUR 8 million (2008: EUR 17 million).
31. Trade and other payables

Trade payables 1,361 1,563
Returnable packaging deposits 408 427
Taxation and social security contributions 551 553
Dividend 24 76
Interest 134 104
Derivatives used for hedge accounting 94 87
Other payables 233 291
Accruals and deferred income 891 745
32 3,696 3,846
32. Financial risk management and financial instruments

Overview
Heineken has exposure to the following risks from its use of financial instruments, as they arise in the normal
course of Heineken’s business:
• Credit risk
• Liquidity risk
• Market risk.
This note presents information about Heineken’s exposure to each of the above risks, and it summarises
Heineken’s policies and processes that are in place for measuring and managing risk, including those related
to capital management. Further quantitative disclosures are included throughout these consolidated financial
statements.
Risk management framework

The Executive Board, under the supervision of the Supervisory Board, has overall responsibility and sets rules
for Heineken’s risk management and control systems. They are reviewed regularly to reflect changes in market
conditions and the Group’s activities. The Executive Board oversees the adequacy and functioning of the entire
system of risk management and internal control, assisted by Group departments.
The Group Treasury function focuses primarily on the management of financial risk and financial resources.
Some of the risk management strategies include the use of derivatives, primarily in the form of spot and
forward exchange contracts and interest rate swaps, but options can be used as well. It is the Group policy
that no speculative transactions are entered into.
Annual Report 2009 – Heineken N.V. 

32. Financial risk management and financial instruments continued

Credit risk
Credit risk is the risk of financial loss to Heineken if a customer or counterparty to a financial instrument fails
to meet its contractual obligations, and arises principally from Heineken’s receivables from customers and
investment securities.
As at balance sheet date there were no significant concentrations of credit risk. The maximum exposure to
credit risk is represented by the carrying amount of each financial instrument, including derivative financial
instruments, in the consolidated statement of financial position.
Loans to customers
Heineken’s exposure to credit risk is mainly influenced by the individual characteristics of each customer.
Heineken’s held-to-maturity investments includes loans to customers, issued based on a loan contract. Loans to
customers are ideally secured by, amongst others, rights on property or intangible assets, such as the right to
take possession of the premises of the customer. Interest rates calculated by Heineken are at least based on the
risk-free rate plus a margin, which takes into account the risk profile of the customer and value of security
given.
Heineken establishes an allowance for impairment of loans that represents its estimate of incurred losses.
The main components of this allowance are a specific loss component that relates to individually significant
exposures, and a collective loss component established for groups of similar customers in respect of losses that
have been incurred but not yet identified. The collective loss allowance is determined based on historical data
of payment statistics.
In a few countries the issue of new loans is outsourced to third parties. In most cases, Heineken issues sureties
(guarantees) to the third party for the risk of default of the customer. Heineken in return receives a fee.
Trade and other receivables

Heineken’s local management has credit policies in place and the exposure to credit risk is monitored on an
ongoing basis. Under the credit policies all customers requiring credit over a certain amount are reviewed
and new customers are analysed individually for creditworthiness before Heineken’s standard payment and
delivery terms and conditions are offered. Heineken’s review includes external ratings, where available, and in
some cases bank references. Purchase limits are established for each customer and these limits are reviewed
regularly. As a result of the deteriorating economic circumstances in 2008 and 2009, certain purchase limits
have been redefined. Customers that fail to meet Heineken’s benchmark creditworthiness may transact with
Heineken only on a prepayment basis.
In monitoring customer credit risk, customers are, on a country base, grouped according to their credit
characteristics, including whether they are an individual or legal entity, which type of distribution channel
they represent, geographic location, industry, ageing profile, maturity and existence of previous financial
difficulties. Customers that are graded as ‘high risk’ are placed on a restricted customer list, and future sales
are made on a prepayment basis only with approval of Management.
 Annual Report 2009 – Heineken N.V.

Heineken has multiple distribution models to deliver goods to end customers. Deliveries are carried out in
some countries via own wholesalers, in other markets directly and in some others via third parties. As such
distribution models are country specific and on consolidated level diverse, as such the results and the balance
sheet items cannot be split between types of customers on a consolidated basis. The various distribution models
are also not centrally managed or monitored.
Heineken establishes an allowance for impairment that represents its estimate of incurred losses in respect of
trade and other receivables and investments. The components of this allowance are a specific loss component
and a collective loss component.
Investments
Heineken limits its exposure to credit risk, except for held-to-maturity investments as disclosed in note 17, by
only investing in liquid securities and only with counterparties that have a credit rating of at least single A or
equivalent for short-term transactions and AA- for long-term transactions. Heineken actively monitors these
credit ratings.
Guarantees
Heineken’s policy is to avoid issuing guarantees where possible unless this leads to substantial savings for the
Group. In cases where Heineken does provide guarantees, such as to banks for loans (to third parties), Heineken
aims to receive security from the third party.
Heineken N.V. has issued a joint and several liability statement to the provisions of Section 403, Part 9, Book 2
of the Dutch Civil Code with respect to legal entities established in the Netherlands.
Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to
credit risk at the reporting date was:

Loans 17 329 310
Held-to-maturity investments 17 4 10
Available-for-sale investments 17 219 221
Non-current derivatives used for hedge accounting 17 16 100
Investments held for trading 17 15 14
Trade and other receivables, excluding derivatives
used for hedge accounting 20 2,261 2,401
Current derivatives used for hedge accounting 20 49 103
3,413 3,857
Annual Report 2009 – Heineken N.V. 


The maximum exposure to credit risk for trade and other receivables (excluding derivatives used for hedge
accounting) at the reporting date by geographic region was:

Western Europe 1,256 1,493
Central and Eastern Europe 554 512
The Americas 134 122
Africa and the Middle East 131 145
Asia Pacific 32 31
Head Office/eliminations 154 98
2,261 2,401
Impairment losses
The ageing of trade and other receivables (excluding derivatives used for hedge accounting) at the reporting
date was:
In millions of EUR Gross 2009 Impairment 2009 Gross 2008 Impairment 2008
Not past due 1,895 (34) 1,868 (17)
Past due 0 – 30 days 202 (26) 232 (7)
Past due 31 – 120 days 198 (67) 241 (56)
More than 120 days 300 (207) 340 (200)
2,595 (334) 2,681 (280)
 Annual Report 2009 – Heineken N.V.

The movement in the allowance for impairment in respect of trade and other receivables (excluding derivatives
used for hedge accounting) during the year was as follows:

Balance as at 1 January 280 194
Changes in consolidation 1 88
Impairment loss recognised 109 52
Allowance used (26) (13)
Allowance released (45) (31)
Balance as at 31 December 334 280
The movement in the allowance for impairment in respect of loans during the year was as follows:

Balance as at 1 January 177 108
Changes in consolidation – 49
Impairment loss recognised 48 46
Allowance used (27) (26)
Allowance released (9) –
Effect of movements in exchange rates (4) –
Balance as at 31 December 185 177
Impairment losses recognised for trade and other receivables (excluding derivatives used for hedge accounting)
and loans are part of the other non-cash items in the consolidated statement of cash flows.
The impairment loss of EUR 48 million (2008: EUR 46 million) in respect of loans and the impairment loss of
EUR 109 million (2008: EUR 52 million) in respect of trade receivables (excluding derivatives used for hedge
accounting) were included in expenses for raw materials, consumables and services.
An impairment loss of EUR 48 million (2008: EUR 46 million) in respect of loans was recognised during the
current year of which EUR 37 million (2008: EUR 34 million) related to loans to customers. Heineken has no
collateral in respect of these impaired investments.
The allowance accounts in respect of trade and other receivables and held-to-maturity investments are used to
record impairment losses, unless Heineken is satisfied that no recovery of the amount owing is possible, at that
point the amount considered irrecoverable is written off against the financial asset.
Liquidity risk
Liquidity risk is the risk that Heineken will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. Heineken’s approach to
managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities
when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to Heineken’s reputation.
Recent times have proven the credit markets situation could be such that it is difficult to generate capital to
finance long-term growth of the Company. Although currently the situation is more stable, the Company has
a clear focus on ensuring sufficient access to capital markets to finance long-term growth and to refinance
maturing debt obligations. Financing strategies are under continuous evaluation. In addition, the Company
focuses on a further fine-tuning of the maturity profile of its long-term debts with its forecasted operating cash
flows. Strong cost and cash management and controls over investment proposals are in place to ensure
effective and efficient allocation of financial resources.
Annual Report 2009 – Heineken N.V. 


Contractual maturities
The following are the contractual maturities of non-derivative financial liabilities and derivative financial
assets and liabilities, including interest payments and excluding the impact of netting agreements:
2009
Carrying Contractual 6 months More than

In millions of EUR amount cash flows or less 6-12 months 1-2 years 2-5 years 5 years
Financial liabilities
Secured bank loans 275 (304) (13) (16) (89) (153) (33)
Unsecured bank loans 3,036 (3,249) (96) (170) (1,375) (1,263) (345)
Unsecured bond issues 2,945 (3,786) (626) (49) (152) (2,032) (927)
Finance lease liabilities 108 (114) (10) (9) (15) (49) (31)
Other interest-bearing liabilities 1,342 (1,690) (91) (54) (67) (803) (675)
Non-interest-bearing liabilities 93 (120) (20) (23) (31) (45) (1)
Deposits from third parties 377 (377) (368) (9) – – –
Bank overdrafts 156 (156) (156) – – – –
Trade and other payables, excluding
interest, dividends and derivatives
used for hedge accounting 3,444 (3,444) (3,278) (166) – – –
Derivative financial (assets)

and liabilities
Interest rate swaps used
for hedge accounting:
Inflow (17) 1,490 43 36 88 732 591
Outflow 438 (1,819) (74) (89) (102) (965) (589)
Forward exchange contracts used
Inflow (48) 1,015 615 282 118 – –
Outflow 26 (996) (608) (268) (120) – –
12,175 (13,550) (4,682) (535) (1,745) (4,578) (2,010)
The total carrying amount and contractual cash flows of derivatives are included in trade and other receivables
(note 20), other investments (note 17), trade and other payables (note 31) and non-current non-interest bearing
liabilities (note 25).
 Annual Report 2009 – Heineken N.V.

2008
Carrying Contractual 6 months More than

Financial liabilities
Secured bank loans 520 (600) (125) (35) (44) (358) (38)
Unsecured bank loans 6,795 (7,611) (392) (207) (2,017) (3,655) (1,340)
Unsecured bond issues 1,122 (1,319) (40) (30) (552) (690) (7)
Finance lease liabilities 95 (107) (11) (12) (13) (38) (33)
Other interest-bearing liabilities 670 (1,245) (77) (39) (44) (129) (956)
Non-interest-bearing liabilities 409 (390) (36) (38) (78) (80) (158)
Deposits from third parties 348 (348) (338) (10) – – –
Bank overdrafts 94 (102) (102) – – – –
Trade and other payables, excluding
interest and dividends 3,666 (3,605) (3,375) (213) (8) (1) (8)
Derivative financial (assets)

and liabilities
Interest rate swaps used for
hedge accounting:
Inflow (89) 2,082 160 144 206 888 684
Outflow 425 (2,532) (194) (191) (293) (1,022) (832)
Forward exchange contracts used
Inflow (102) 2,068 1,095 670 303 – –
Outflow 55 (2,028) (1,056) (677) (295) – –
Other derivatives not used
for hedge accounting, net (12) – – – – – –
13,996 (15,737) (4,491) (638) (2,835) (5,085) (2,688)
The total carrying amount and contractual cash flows of derivatives are included in trade and other receivables
(note 20) and trade and other payables (note 31) and non-current non-interest bearing liabilities (note 25).
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity
prices will affect Heineken’s income or the value of its holdings of financial instruments. The objective of market
risk management is to manage and control market risk exposures within acceptable parameters, whilst
optimising the return on risk.
Heineken uses derivatives in the ordinary course of business, and also incurs financial liabilities, in order to
manage market risks. Generally, Heineken seeks to apply hedge accounting or make use of natural hedges in
order to minimise the effects of foreign currency fluctuations in the income statement.
Derivatives that can be used are interest rate swaps, forward rate agreements, caps and floors, commodity
swaps, spot and forward exchange contracts and options. Transactions are entered into with a limited number
of counterparties with strong credit ratings. Foreign currency, interest rate and commodity hedging operations
are governed by internal policies and rules approved and monitored by the Executive Board.
Annual Report 2009 – Heineken N.V. 


Foreign currency risk
Heineken is exposed to foreign currency risk on sales, purchases and borrowings that are denominated in a
currency other than the respective functional currencies of Heineken entities. The main currencies that give
rise to this risk are the US dollar and British pound.
In managing foreign currency risk, Heineken aims to reduce the impact of short-term fluctuations on
earnings. Over the longer term, however, permanent changes in foreign exchange rates would have an
impact on profit.
Heineken hedges up to 90 per cent of its mainly intra-Heineken US dollar cash flows on the basis of rolling
cash flow forecasts in respect to forecasted sales and purchases. Cash flows in other foreign currencies are
also hedged on the basis of rolling cash flow forecasts. Heineken mainly uses forward exchange contracts to
hedge its foreign currency risk. Given the limited availability of efficient and effective hedging instruments
hedging levels are temporarily below policy in a number of Central and Eastern European countries. The
majority of the forward exchange contracts have maturities of less than one year after the balance sheet
date.
The Company has a clear policy on hedging transactional exchange risks, which postpones the impact on
financial results. Translation exchange risks are hedged to a limited extent, as the underlying currency
positions are generally considered to be long-term in nature. The result of the net investment hedging is
recognised in the translation reserve as can be seen in the consolidated statement of comprehensive income.
It is Heineken’s policy to provide intra-Heineken financing in the functional currency of subsidiaries where
possible to prevent foreign currency exposure on subsidiary level. The resulting exposure at Group level is
hedged by means of forward exchange contracts. Intra-Heineken financing in foreign currencies is mainly
in British pounds, US dollars, Russian roubles and Polish zloty. In some cases Heineken elects to treat intra-
Heineken financing with a permanent character as equity and does not hedge the foreign currency exposure.
The principal amounts of Heineken’s British pound, Polish zloty and Egyptian pound bank loans and bond
issues are used to hedge local operations, which generate cash flows that have the same respective functional
currencies. Corresponding interest on these borrowings is also denominated in currencies that match the
cash flows generated by the underlying operations of Heineken. This provides an economic hedge without
derivatives being entered into.
In respect of other monetary assets and liabilities denominated in currencies other than the functional
currencies of the Company and the various foreign operations, Heineken ensures that its net exposure is kept
to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-
term imbalances.
 Annual Report 2009 – Heineken N.V.

Exposure to foreign currency risk
Heineken's transactional exposure to the British pound, US dollar and euro was as follows based on notional
amounts. The euro column relates to transactional exposure to the euro within subsidiaries which are reporting
in other currencies.
2009 2009 2009 2008 2008

In millions EUR GBP USD GBP USD
Loans and held-to-maturity
investments – – – 480 257
Trade and other receivables 25 – 7 12 142
Cash and cash equivalents 46 – 2 24 19
Secured bank loans – – (1) – –
Unsecured bank loans (100) (57) (1,492) (537) (1,720)
Unsecured bond issues – (400) – – 2
Non-interest-bearing liabilities (10) – (1) – (2)
Bank overdrafts (63) – (2) – (13)
Trade and other payables (88) – (26) (4) (58)
Gross balance sheet exposure (190) (457) (1,513) (25) (1,373)
Estimated forecast sales
next year 140 1 885 2 1,000
Estimated forecast purchases next
year (402) (1) (88) 1 (295)
Gross exposure (452) (457) (716) (22) (668)
Cash flow hedge accounting
forward exchange contracts 61 427 (375) (1) (545)
Other hedge accounting forward
exchange contracts (945) – 1,061 57 799
Net exposure (1,336) (30) (30) 34 (414)
Including in the US dollar amounts are intra-Heineken cash flows. Within the other hedge accounting forward
exchange contracts, the cross-currency interest rate swaps of Heineken UK forms the largest component. As a
result of the 2008 Scottish & Newcastle acquisition, Heineken had assumed debt swapped back into euro which
is maintained as a net investment hedge.
The following significant exchange rates applied during the year:

Average rate Year-end rate
In EUR 2009 2008 2009 2008
GBP 1.1224 1.2577 1.1260 1.0499
USD 0.7170 0.6832 0.6942 0.7185
Sensitivity analysis
A 10 per cent strengthening of the euro against the British pound and US dollar or in case of the euro a
strenghtening of the euro against all other currencies as at 31 December would have increased (decreased)
equity and profit by the amounts shown below. This analysis assumes that all other variables, in particular
interest rates, remain constant. The analysis is performed on the same basis for 2008.
Equity Profit or loss

In millions of EUR 31 December 2009 2008 2009 2008
EUR 1 – (3) –
GBP 2 (2) 2 (2)
USD 39 54 – 6
A 10 per cent weakening of the euro against the British pound and US dollar or in case of the euro a weakening
of the euro against all other currencies as at 31 December would have had the equal but opposite effect on the
basis that all other variables remain constant.
Annual Report 2009 – Heineken N.V. 


Interest rate risk
In managing interest rate risk, Heineken aims to reduce the impact of short-term fluctuations on earnings. Over
the longer term, however, permanent changes in interest rates would have an impact on profit.
Heineken opts for a mix of fixed and variable interest rates in its financing operations, combined with the use of
interest rate instruments. Currently Heineken’s interest rate position is more weighted towards fixed rather than
floating. Interest rate instruments that can be used are interest rate swaps, forward rate agreements, caps and
floors.
Swap maturity follows the maturity of the related loans and borrowings and have swap rates for the fixed leg
ranging from 2.0 to 7.3 per cent (2008: from 2.9 to 7.3 per cent).
Interest rate risk – Profile

At the reporting date the interest rate profile of Heineken’s interest-bearing financial instruments was as follows:

Fixed rate instruments
Financial assets 157 121
Financial liabilities (4,664) (3,192)
Interest rate swaps floating to fixed (2,505) (4,656)
(7,012) (7,727)
Variable rate instruments

Financial assets 88 817
Financial liabilities (2,947) (6,452)
Interest rate swaps fixed to floating 2,505 4,656
(354) (979)
Fair value sensitivity analysis for fixed rate instruments

During 2009, Heineken opted to apply fair value hedge accounting on certain fixed rate financial liabilities. The
fair value movements on these instruments are recognised in the income statement. The change in fair value
on these instruments was EUR 73 million in 2009 (2008: EUR 294 million), which was offset by the change in fair
value of the hedge accounting instruments, which was EUR (73) million (2008: EUR (288) million).
A change of 100 basis points in interest rates at the reporting date would have increased (decreased) equity and
profit or loss by the amounts shown below (after tax).
Profit or loss Equity
100 bp 100 bp 100 bp 100 bp

In millions of EUR increase decrease increase decrease
31 December 2009
Instruments designated at fair value 45 (48) 45 (48)
Interest rate swaps (19) 21 49 (47)
Fair value sensitivity (net) 26 (27) 94 (95)
31 December 2008
Instruments designated at fair value 30 33 30 33
Interest rate swaps (3) (63) 94 (159)
Fair value sensitivity (net) 27 (30) 124 (126)
 Annual Report 2009 – Heineken N.V.

As part of the acquisition of Scottish & Newcastle in 2008, Heineken took over a specific portfolio of euro floating-
to-fixed interest rate swaps with a notional amount of EUR 1,290 million. Although interest rate risk is hedged
economically, it is not possible to apply hedge accounting on this portfolio. A movement in interest rates will
therefore lead to a fair value movement in the income statement under the other net financing income/
(expenses). Any related non-cash income or expenses in our income statement are expected to reverse over time.
Cash flow sensitivity analysis for variable rate instruments

A change of 100 basis points in interest rates constantly applied during the reporting period would have
increased (decreased) equity and profit or loss by the amounts shown below (after tax). This analysis assumes
that all other variables, in particular foreign currency rates, remain constant and excludes any possible change
in fair value of derivatives at period-end because of a change in interest rates. The analysis is performed on the
same basis for 2008.
Profit or loss Equity
100 bp 100 bp 100 bp 100 bp

In millions of EUR increase decrease increase decrease
31 December 2009
Variable rate instruments (21) 21 (21) 21
Net interest rate swaps floating to fixed 19 (19) 19 (19)
Cash flow sensitivity (net) (2) 2 (2) 2
31 December 2008
Variable rate instruments (42) 42 (42) 42
Net interest rate swaps floating to fixed 35 (35) 35 (35)
Cash flow sensitivity (net) (7) 7 (7) 7
Other market price risk

Management of Heineken monitors the mix of debt and equity securities in its investment portfolio based on
market expectations. Material investments within the portfolio are managed on an individual basis.
The primary goal of Heineken’s investment strategy is to maximise investment returns in order to partially
meet its unfunded defined benefit obligations; management is assisted by external advisors in this regard.
Commodity risk is the risk that changes in commodity price will affect Heineken’s income. The objective
of commodity risk management is to manage and control commodity risk exposures within acceptable
parameters, whilst optimising the return on risk. The main commodity exposure relates to the purchase of
cans, glass bottles, malt and utilities. Commodity risk is in principal addressed by negotiating fixed prices in
supplier contracts with various contract durations. So far, commodity hedging with financial counterparties
by the Company is limited to the incidental sale of surplus CO2 emission rights and aluminium hedging, which
is done in accordance with risk policies. Heineken does not enter into commodity contracts other than to meet
Heineken’s expected usage and sale requirements. As at 31 December 2009, the underlying amount of
aluminium swaps was EUR 8 million. Off-balance sheet exposure as at 31 December 2009 EUR 3,564 million and
in principal represent long-term supply contracts of raw materials.
Annual Report 2009 – Heineken N.V. 


Cash flow hedges
The following table indicates the periods in which the cash flows associated with derivatives that are cash flow
hedges, are expected to occur.
2009
Carrying Expected 6 months More than

Interest rate swaps:
Assets (17) 503 16 16 27 66 378
Liabilities 226 (740) (65) (78) (80) (163) (354)
Forward exchange contracts:
Assets (48) 1,015 615 282 118 – –
Liabilities 26 (996) (608) (268) (120) – –
187 (218) (42) (48) (55) (97) 24
2008

Assets (89) 856 80 64 124 139 449
Liabilities 206 (1,097) (100) (97) (212) (214) (474)
Forward exchange contracts:
Assets (102) 2,068 1,095 670 303 – –
Liabilities 55 (2,028) (1,056) (677) (295) – –
70 (201) 19 (40) (80) (75) (25)
The periods in which the cash flows associated with forward exchange contracts that are cash flow hedges are
expected to impact the income statement is on average two months earlier than the occurrence of the cash
flows as in the above table.
Fair value hedges/net investment hedges

The following table indicates the periods in which the cash flows associated with derivatives that are fair value
hedges or net investment hedges are expected to occur.
2009

Assets – 987 27 20 61 666 213
Liabilities (212) (1,079) (9) (11) (22) (802) (235)
(212) (92) 18 9 39 (136) (22)
2008

Assets – 1,106 62 61 47 701 235
Liabilities 167 (1,316) (76) (76) (45) (761) (358)
167 (210) (14) (15) 2 (60) (123)
 Annual Report 2009 – Heineken N.V.

Capital management
There were no major changes in Heineken’s approach to capital management during the year. The Executive
Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence
and to sustain future development of business and acquisitions. Capital is herein defined as equity attributable
to equity holders of the Company (total equity minus minority interests).
Heineken is not subject to externally imposed capital requirements other than the legal reserves explained in
note 22. Shares are purchased to meet the requirements under the Long-Term Incentive Plan as further
explained in note 29.
Fair values
The fair values of financial assets and liabilities, together with the carrying amounts shown in the statement of
financial position, are as follows:
Carrying Fair Carrying Fair

amount value amount value
Loans 329 329 310 310
Held-to-maturity investments 4 4 10 10
Available-for-sale investments 219 219 221 221
Advances to customers 319 319 346 346
Investments held for trading 15 15 14 14
Trade and other receivables, excluding derivatives
used for hedge accounting 2,261 2,261 2,401 2,401
Cash and cash equivalents 520 520 698 698
Interest rate swaps used for hedge accounting:
Assets 17 17 89 89
Liabilities (438) (438) (425) (425)
Forward exchange contracts used for hedge accounting:
Assets 48 48 102 102
Liabilities (26) (26) (55) (55)
Other derivatives, net – – 12 12
Bank loans (3,311) (3,362) (7,315) (7,401)
Unsecured bond issues (2,945) (3,058) (1,122) (1,204)
Finance lease liabilities (108) (108) (95) (95)
Other interest-bearing liabilities (1,342) (1,423) (670) (679)
Non-interest-bearing liabilities (93) (93) (16) (16)
Non-current derivatives used for hedge accounting (370) (370) (393) (393)
Deposits from third parties and other interest-bearing liabilities (377) (377) (348) (348)
Trade and other payables excluding dividend,
interest and derivatives used for hedge accounting (3,444) (3,444) (3,579) (3,579)
Bank overdrafts (156) (156) (94) (94)
Basis for determining fair values

The significant methods and assumptions used in estimating the fair values of financial instruments reflected in
the table above are discussed in note 4.
Fair value hierarchy

Effective 1 January 2009, Heineken adopted the amendment to IFRS 7 for financial instruments that are
measured in the statement of financial position at fair value (refer 3b). This requires disclosure of fair value
measurements by level of the following fair value measurement hierarchy:
• Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).
• Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either
directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).
• Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3).
Annual Report 2009 – Heineken N.V. 

In millions of EUR Level 1 Level 2 Level 3

31 December 2009
Available-for-sale investments 57 – 162
Non-current derivative assets used for hedge accounting – 16 –
Current derivative assets used for hedge accounting – 49 –
Investments held for trading 15 – –
72 65 162
Non-current derivative liabilities used for hedge accounting – 370 –

Current derivative liabilities used for hedge accounting – 94 –
– 464 –
31 December 2008
Available-for-sale investments 47 – 174
Non-current derivative assets used for hedge accounting – 100 –
Current derivative assets used for hedge accounting – 103 –
Investments held for trading 14 – –
61 203 174
Non-current derivative liabilities used for hedge accounting – 393 –

Current derivative liabilities used for hedge accounting – 87 –
– 480 –
In millions of EUR 2009

Available-for-sale investments based on Level 3
Balance as at 1 January 174
Fair value adjustments recognised in other
comprehensive income 18
Disposals (34)
Transfers 4
Balance as at 31 December 162
33. Off-balance sheet commitments

Total Less than More than Total
In millions of EUR 2009 1 year 1-5 years 5 years 2008
Guarantees to banks for loans (to third parties) 371 191 146 34 408
Other guarantees 177 116 5 56 89
Guarantees 548 307 151 90 497
Lease & operational lease commitments 322 47 139 136 378

Property, plant & equipment ordered 46 42 2 2 56
Raw materials purchase contracts 3,564 950 1,399 1,215 2,835
Other off-balance sheet obligations 2,199 450 1,228 521 2,325
Off-balance sheet obligations 6,131 1,489 2,768 1,874 5,594
Undrawn committed bank facilities 2,077 77 2,000 – 1,640
 Annual Report 2009 – Heineken N.V.

Heineken leases buildings, cars and equipment
Guarantees to banks for loans relate to loans to customers, which are given by external parties in the ordinary
course of business of Heineken.
Raw material contracts include long term purchase contracts with suppliers in which prices are fixed or will be
agreed based upon pre-defined price formulas. These contracts mainly relate to malt, bottles and cans
During the year ended 31 December 2009 EUR 184 million (2008: EUR 177 million) was recognised as an expense
in the income statement in respect of operating leases and rent.
Other off-balance sheet obligations mainly include distribution, rental, service and sponsorship contracts.
Committed bank facilities are credit facilities on which a commitment fee is paid as compensation for the bank’s
requirement to reserve capital. For the details of these committed bank facilities see note 25. The bank is legally
obliged to provide the facility under the terms and conditions of the agreement.
As part of the transaction with APB in respect of the realignment of its interests in the Asia Pacific region,
Heineken acquired the entire issued share capital of APB Pearl Ltd and APB Aurangabad Ltd on 10 February 2010
(refer note 37). Heineken intends to transfer its interests in these two companies, together with its interests in
MAPL, to UBL during 2010.
34. Contingencies
The Netherlands
Heineken is involved in an antitrust case initiated by the European Commission for alleged violations of the
European Union competition laws. By decision of 18 April 2007 the European Commission stated that Heineken
and other brewers operating in the Netherlands, restricted competition in the Dutch market during the period
1996-1999. This decision follows an investigation by the European Commission that commenced in March 2000.
Heineken fully cooperated with the authorities in this investigation. As a result of its decision, the European
Commission imposed a fine on Heineken of EUR 219 million in April 2007.
On 4 July 2007 Heineken filed an appeal with the European Court of First Instance against the decision of the
European Commission as Heineken disagrees with the findings of the European Commission. Pending appeal,
Heineken was obliged to pay the fine to the European Commission. This fine was paid in 2007 and was treated
as an expense in the 2007 Annual Report. A final decision by the European Court of First Instance is expected
in 2010 or 2011.
Carlsberg
The consideration paid (purchase price) for the acquisition of Scottish & Newcastle is subject to change as, in
line with the consortium agreement, the final net debt settlement is being discussed between the consortium
partners. Given that the outcome is not virtually certain there is no basis to reliably estimate the financial effects
of the net debt settlement.
Annual Report 2009 – Heineken N.V. 

35. Related parties

Identification of related parties
Heineken has a related party relationship with its associates and joint ventures (refer note 16), Heineken Holding
N.V., Heineken pension funds (refer note 28) and with its key management personnel (Executive Board and the
Supervisory Board).
Key management remuneration

Executive Board 4.2 3.2
Supervisory Board 0.4 0.4
4.6 3.6
Executive Board
The remuneration of the members of the Executive Board comprises a fixed component and a variable
component. The variable component is made up of a Short-Term Incentive Plan and a Long-Term Incentive Plan.
The Short-Term Incentive Plan is based on an organic profit growth target and specific year targets as set by the
Supervisory Board. For the Long-Term Incentive Plan see note 29. The separate Remuneration Report is stated
on page 65.
As at 31 December 2009, J.F.M.L. van Boxmeer held 9,244 Company’s shares and D.R. Hooft Graafland 6,544
(2008: J.F.M.L. van Boxmeer 9,244 and D.R. Hooft Graafland 6,544 shares). D.R. Hooft Graafland held 3,052 shares
of Heineken Holding N.V. as at 31 December 2009 (2008: 3,052 shares).
Executive Board
Short-Term Long-Term
Fixed Salary Incentive Plan Incentive Plan* Pension Plan Total
In thousands of EUR 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
J.F.M.L. van Boxmeer 750 750 1,125 611 303 249 379 287 2,557 1,897
D.R. Hooft Graafland 550 550 619 336 167 149 315 247 1,651 1,282
Total 1,300 1,300 1,744 947 470 398 694 534 4,208 3,179
* The remuneration reported as part of the Long-Term Incentive Plan is based on IFRS accounting policies and does not reflect the value of vested
performance shares.
Supervisory Board
The individual members of the Supervisory Board received the following remuneration:
In thousands of EUR 2009 2008

C.J.A. van Lede 66 66
J.M. de Jong 52 52
M. Das 52 52
M.R. de Carvalho 50 50
J.M. Hessels 50 50
I.C. MacLaurin 50 50
A.M. Fentener van Vlissingen 50 50
M. Minnick 45 32
V.C.O.B.J. Navarre 31 –
Total 446 402
Only M.R. de Carvalho held shares (8) of Heineken N.V. as at 31 December 2009 (2008: 8 shares). As at
31 December 2009 and 2008, the Supervisory Board members did not hold any of the Company’s bonds or
option rights. C.J.A. van Lede held 2,656 and M.R. de Carvalho held 8 shares of Heineken Holding N.V. as at
31 December 2009 (2008: C.J.A. van Lede 2,656 and M.R. de Carvalho 8 shares).
 Annual Report 2009 – Heineken N.V.

Other related party transactions
Balance outstanding
Transaction value as at 31 December
Sale of products and services
To associates and joint ventures 142 50 12 6
142 50 12 6
Raw materials, consumables and services

Goods for resale – joint ventures 89 26 1 7
Other expenses – joint ventures 12 1 – 6
101 27 1 13
Heineken Holding N.V.

In 2009 an amount of EUR 712,129 (2008: EUR 551,000) was paid to Heineken Holding N.V. for management
services for the Heineken Group.
This payment is based on an agreement of 1977 as amended in 2001, providing that Heineken N.V. reimburses
Heineken Holding N.V. for its administration costs. Best practice provision III.6.4 of the Dutch Corporate
Governance Code of 10 December 2008 has been observed in this regard.
36. Heineken entities

Control of Heineken
The shares and options of the Company are traded on Euronext Amsterdam, where the Company is included in
the main AEX Index. Heineken Holding N.V. Amsterdam has an interest of 50.005 per cent in the issued capital of
the Company. The financial statements of the Company are included in the consolidated financial statements of
Heineken Holding N.V.
A declaration of joint and several liability pursuant to the provisions of Section 403, Part 9, Book 2, of the Dutch
Civil Code has been issued with respect to legal entities established in the Netherlands marked with a • overleaf.
Annual Report 2009 – Heineken N.V. 

36. Heineken entities continued

Significant subsidiaries
Ownership interest
Country of incorporation 2009 2008
• Heineken Nederlands Beheer B.V. The Netherlands 100% 100%
• Heineken Brouwerijen B.V. The Netherlands 100% 100%
• Heineken Nederland B.V. The Netherlands 100% 100%
• Heineken International B.V. The Netherlands 100% 100%
• Heineken Supply Chain B.V. The Netherlands 100% 100%
• Amstel Brouwerij B.V. The Netherlands 100% 100%
• Amstel Internationaal B.V. The Netherlands 100% 100%
• Vrumona B.V. The Netherlands 100% 100%
• Invebra Holland B.V. The Netherlands 100% 100%
• B.V. Beleggingsmaatschappij Limba The Netherlands 100% 100%
• Brand Bierbrouwerij B.V. The Netherlands 100% 100%
• Heineken CEE Holdings B.V. The Netherlands 100% 100%
• Heineken CEE Investments B.V. The Netherlands 100% 100%
• Brasinvest B.V. The Netherlands 100% 100%
• Heineken Beer Systems B.V. The Netherlands 100% 100%
Central Europe Beverages B.V. The Netherlands 72% 72%
Heineken France S.A.S. France 100% 100%
Heineken UK Ltd. United Kingdom 100% 100%
Sociedade Central de Cervejas et Bebidas S.A. Portugal 100% 100%
Oy Hartwell Ab. Finland 100% 100%
Heineken España S.A. Spain 98.7% 98.6%
Heineken Italia S.p.A. Italy 100% 100%
Athenian Brewery S.A. Greece 98.8% 98.8%
Brau Union AG Austria 100% 100%
Brau Union Österreich AG Austria 100% 100%
Grupa Żywiec S.A. Poland 61.9% 62%
Heineken Ireland Ltd.1 Ireland 100% 100%
Heineken Hungária Sorgyárak Zrt. Hungary 100% 100%
Heineken Slovensko a.s. Slovakia 100% 100%
Heineken Switzerland AG Switzerland 100% 100%
Karlovacka Pivovara d.o.o. Croatia 100% 100%
Mouterij Albert N.V. Belgium 100% 100%
Ibecor S.A. Belgium 100% 100%
Affligem Brouwerij BDS N.V. Belgium 100% 100%
N.V. Brouwerijen Alken-Maes Brasseries S.A. Belgium 99.7% 99.7%
LLC Heineken Breweries Russia 100% 100%
Heineken USA Inc. United States 100% 100%
Heineken Ceská republika a.s. Czech Republic 100% 100%
Drinks Union a.s. Czech Republic 100% 98.5%
Heineken Romania S.A. Romania 98.5% 98.2%
FCJSC Brewing Company, Syabar’ Belarus 100% 100%
OJSC, Rechitsapivo’ Belarus 86.2% 80.8%
Commonwealth Brewery Ltd. Bahamas 53.2% 53.2%
Windward & Leeward Brewery Ltd. St Lucia 72.7% 72.7%
Cervecerias Baru-Panama S.A. Panama 74.9% 74.9%
Nigerian Breweries Plc. Nigeria 54.1% 54.1%
Al Ahram Beverages Company S.A.E. Egypt 99.9% 99.9%
Brasserie Lorraine S.A. Martinique 100% 83.1%
Surinaamse Brouwerij N.V. Suriname 76.2% 76.1%
Consolidated Breweries Ltd. Nigeria 50.4% 50.1%
Brasserie Almaza S.A.L. Lebanon 67% 67%
Brasseries, Limonaderies et Malteries ‘Bralima’ S.A.R.L. D.R. Congo 95% 95%
Brasseries et Limonaderies du Rwanda ‘Bralirwa’ S.A. Rwanda 70% 70%
Brasseries et Limonaderies du Burundi ‘Brarudi’ S.A. Burundi 59.3% 59.3%
 Annual Report 2009 – Heineken N.V.

Ownership interest
Country of incorporation 2009 2008
Brasseries de Bourbon S.A. Réunion 85.7% 85.7%
Sierra Leone Brewery Ltd. Sierra Leone 83.1% 83.1%
Tango s.a.r.l. Algeria 100% 100%
Société Nouvelle des Boissons Gazeuses S.A. (‘SNBG’) Tunisia 74.5% 74.5%
Socièté Nouvelle de Brasserie S.A. ‘Sonobra’ Tunisia 49.9% 49.9%
1
I n accordance with article 17 of the Republic of Ireland Companies (Amendment) Act 1986, the Company issued an irrevocable guarantee for
the years ended 31 December 2009 and 2008 regarding the liabilities of Heineken Ireland Ltd., Heineken Ireland Sales Ltd., West Cork Bottling Limited,
Western Beverages Limited and Beamish and Crawford Limited, as referred to in article 5I of the Republic of Ireland Companies (Amendment) Act 1986.
37. Subsequent events

Announcement to acquire FEMSA Beer Business
On 11 January 2010 Heineken announced the acquisition of the beer operations of Fomento Económico
Mexicano, S.A.B. de C.V (‘FEMSA’) via an all share transaction (the ‘Transaction’). Heineken will acquire FEMSA
Cerveza, comprising 100 per cent of FEMSA’s Mexican beer operations (including its US and other export
business) and the remaining 83 per cent of FEMSA’s Brazilian beer business that Heineken does not currently
own. The transaction is expected to complete in the second quarter of 2010 and is subject to the customary
approval of the relevant regulatory authorities and the approval of the shareholders of Heineken N.V., Heineken
Holding N.V. and FEMSA.
Under the proposed terms of the Acquisition, Heineken has offered FEMSA 86,028,019 new shares in Heineken
on the completion of the Acquisition with a commitment to deliver an additional 29,172,504 Heineken shares to
FEMSA over a period of not more than five years. Simultaneously with the closing of the Acquisition, Heineken
Holding will swap 43,018,320 of the new Heineken shares with FEMSA for an equal number of newly issued
shares in Heineken Holding. Following delivery of all such Heineken and Heineken Holding shares, FEMSA will
hold a 20 per cent economic interest in the Heineken Group.
Based on the Heineken closing share price of EUR 32.925, as at 8 January 2010, the last trading day prior to
entering to the transaction, the delivery of 115,200,523 Heineken shares values the equity of FEMSA Cerveza
at approximately EUR 3.8 billion. Including net debt and pension obligations to be assumed of approximately
EUR 1.5 billion, the total implied enterprise value for FEMSA Cerveza is approximately EUR 5.3 billion.
Strategic realignment interests in Asia Pacific region

On 10 February 2010, Heineken acquired the entire issued share capital of APB-Pearl Ltd and
APB (Aurangabad) Ltd. Heineken intends to transfer its interests in these two companies, together with its
interests in MAPL, to UBL during 2010.
On 10 February 2010 Heineken transferred the shares it held in GBNC in its entirety to APB. On the same date,
Heineken transferred a controlling stake of 68.5 per cent in MBI to APB. Heineken retains a shareholding in MBI
of 16.5 per cent. Both transactions will be accounted for under the revised IAS 27 standard and Heineken
expects to realise an estimated combined gross book gain of EUR 140 million net of tax.
Annual Report 2009 – Heineken N.V. 

Heineken N.V. Balance Sheet
Before appropriation of profit

As at 31 December 2009
Fixed assets
Financial fixed assets
Investments in participating interests 38 11,345 10,723
Deferred tax assets 38 23
Total financial fixed assets 11,418 10,835
Trade and other receivables 22 26
Cash and cash equivalents 2 8
Total current assets 24 34
Total assets 11,442 10,869
Shareholders’ equity
Issued capital 784 784
Translation reserve (451) (595)
Hedging reserve (124) (122)
Fair value reserve 100 88
Other legal reserves 676 595
Reserve for own shares (42) (40)
Retained earnings 3,390 3,552
Net profit 1,018 209
Total shareholders’ equity 39 5,351 4,471
Liabilities
Loans and borrowings 40 5,406 6,289
Total non-current liabilities 5,406 6,289
Loans and borrowings 500 –
Trade and other payables 185 99
Tax payable – 10
Total current liabilities 685 109
Total liabilities 6,091 6,398
Total shareholders’ equity and liabilities 11,442 10,869
 Annual Report 2009 – Heineken N.V.

Heineken N.V. Income Statement

Share of profit of participating interests, after income tax 1,305 246
Other profit after income tax (287) (37)
Net profit 39 1,018 209
Annual Report 2009 – Heineken N.V. 

Notes to the Heineken N.V.

Reporting entity
The financial statements of Heineken N.V. (the ‘Company’) are included in the consolidated statements
of Heineken N.V.
Basis of preparation
The Company financial statements have been prepared in accordance with the provisions of Part 9, Book 2, of
the Dutch Civil Code. The Company uses the option of Article 362.8 of Part 9, Book 2, of the Dutch Civil Code to
prepare the Company financial statements, using the same accounting policies as in the consolidated financial
statements. Valuation is based on recognition and measurement requirements of accounting standards adopted
by the EU (i.e., only IFRS that is adopted for use in the EU at the date of authorisation) as explained further in the
notes to the consolidated financial statements.
Significant accounting policies

Financial fixed assets
Participating interests (subsidiaries, joint ventures and associates) are measured on the basis of the equity method.
Shareholders’ equity
The translation reserve and other legal reserves were previously formed under and are still recognised in
accordance with the Dutch Civil Code.
Profit of participating interests

The share of profit of participating interests consists of the share of the Company in the results of these participating
interests. Results on transactions, where the transfer of assets and liabilities between the Company and its
participating interests and mutually between participating interests themselves, are not recognised.
 Annual Report 2009 – Heineken N.V.

38. Investments in participating interests
Loans to
Participating participating
In millions of EUR interests interests Total
Balance as at 1 January 2008 3,954 2,606 6,560
Profit of participating interests 246 – 246
Dividend payments by participating interests (1) 1 –
Effect of movements in exchange rates (602) – (602)
Changes in hedging and fair value adjustments (102) – (102)
Investments/additions 660 3,961 4,621
Balance as at 31 December 2008 4,155 6,568 10,723
Balance as at 1 January 2009 4,155 6,568 10,723

Profit of participating interests 1,305 – 1,305
Dividend payments by participating interests (688) 688 –
Effect of movements in exchange rates 144 – 144
Changes in hedging and fair value adjustments 62 – 62
Investments/(repayments) 151 (1,040) (889)
Balance as at 31 December 2009 5,129 6,216 11,345
Annual Report 2009 – Heineken N.V. 

Notes to the Heineken N.V. Financial Statements
39. Shareholders’ equity
Reserve Share
Issued Translation Hedging Fair value Other legal for own Retained holders'
In millions of EUR capital reserve reserve reserve reserves shares earnings Net profit equity
Balance as at
1 January 2008 784 7 44 99 571 (29) 3,121 807 5,404
Other comprehensive income – (602) (166) (11) (44) – 44 – (779)

Profit – – – – 142 – (142) 209 209
Total comprehensive income – (602) (166) (11) 98 – (98) 209 (570)
Transfer to retained earnings – – – – (74) – 881 (807) –

Dividends to
shareholders – – – – – – (363) – (363)
Purchase/reissuance own
shares – – – – – (11) – – (11)
Share-based payments – – – – – – 11 – 11
Balance as at
31 December 2008 784 (595) (122) 88 595 (40) 3,552 209 4,471
Balance as at
1 January 2009 784 (595) (122) 88 595 (40) 3,552 209 4,471
Other comprehensive income – 144 (2) 12 6 – (6) – 154

Profit – – – – 150 – (150) 1,018 1,018
Total comprehensive income – 144 (2) 12 156 – (156) 1,018 1,172
Transfer to retained earnings – – – – (75) – 284 (209) –

Dividends to
shareholders – – – – – – (289) – (289)
Purchase/reissuance own
shares – – – – – (2) (11) – (13)
Share-based payments – – – – – – 10 – 10
Balance as at
31 December 2009 784 (451) (124) 100 676 (42) 3,390 1,018 5,351
For more details on reserves, please see note 22 of the consolidated financial statements.
For more details on LTIP, please see note 29 of the consolidated financial statements.
 Annual Report 2009 – Heineken N.V.

40. Loans and borrowings

Unsecured bank loans 2,448 4,655
Unsecured bond issues 2,433 1,098
Other 371 377
Non-current non-interest-bearing liabilities 25 7 –
Non-current derivatives used for hedge accounting 147 159
5,406 6,289
Other Non-current
non-current Non-current derivatives
interest- non-inter- used for
Unsecured Unsecured bearing est-bearing hedge
In millions of EUR bank loans bond issues liabilities liabilities accounting Total
Balance as at 1 January 2009 4,655 1,098 377 – 159 6,289
Charge from/to profit or loss i/r derivatives – – – 7 5 12
Effects of movements of exchange rates 69 8 (41) – – 36
Proceeds – 1,838 – – – 1,838
Repayments (1,959) (13) – – – (1,972)
Transfers (317) (498) 35 – (17) (797)
Balance as at 31 December 2009 2,448 2,433 371 7 147 5,406
Terms and debt repayment schedule

Terms and conditions of outstanding loans were as follows:
Nominal Carrying Carrying

interest Face value amount Face value amount
In millions of EUR Currency rate % Repayment 2009 2009 2008 2008
2014–
Unsecured bank loans EUR 2.4–6.2 2017 213 213 – –
Unsecured bank loans EUR 1.6 2013 1,700 1,709 2,403 2,416
Unsecured bank loans EUR 2.5–6.0 2015 207 207 418 418
Unsecured bank loans GBP 2.8 2013 329 329 504 504
Unsecured bond issue GBP 7.3 2015 442 450 – –
Unsecured bond issue EUR 4.3 2010 500 500 500 500
Unsecured bond issue EUR 5.0 2013 598 600 598 600
Unsecured bond issue EUR 7.1 2014 996 1,000 – –
Unsecured bond issue EUR 4.6 2016 397 400 – –
Other interest-bearing liabilities USD 5.9 2018 306 307 280 280
Other interest-bearing liabilities various various various 64 64 97 97
5,752 5,779 6,130 6,145
For financial risk management and financial instruments, see note 32.
Annual Report 2009 – Heineken N.V. 

Notes to the Heineken N.V. Financial Statements
41. Audit fees

Other expenses in the consolidated financial statements include EUR 11.7 million of fees in 2009 (2008: EUR 14.5
million) for services provided by KPMG Accountants N.V. and its member firms and/or affiliates. Fees for audit
services include the audit of the financial statements of Heineken and its subsidiaries. Fees for other audit
services include sustainability, subsidy and other audits. Fees for tax services include tax compliance and tax
advice. Fees for other non-audit services include due diligence related to mergers and acquisitions, review of
interim financial statements, agreed upon procedures and advisory services.
Other KPMG member

KPMG Accountants N.V. firms and affiliates Total
In millions of EUR 2009 2008 2009 2008 2009 2008
Audit of Heineken and its subsidiaries 2.0 2.7 5.5 6.9 7.5 9.6
Other audit services 0.4 0.1 0.4 0.5 0.8 0.6
Tax services – – 1.6 1.4 1.6 1.4
Other non-audit services 0.8 0.7 1.0 2.2 1.8 2.9
Total 3.2 3.5 8.5 11.0 11.7 14.5
42. Off-balance sheet commitments
Less than More than Total

In millions of EUR Total 1 year 1-5 years 5 years 2008
Undrawn committed bank facility 2,000 – 2,000 – 1,530
2009 2008
Third Heineken Third Heineken

parties companies parties companies
Declarations of joint and several liability – 1,563 – 1,937
Fiscal unity
The Company is part of the fiscal unity of Heineken in the Netherlands. Based on this the Company is liable for
the tax liability of the fiscal unity in the Netherlands.
43. Subsequent events

For subsequent events, see note 37.
 Annual Report 2009 – Heineken N.V.

44. Other disclosures
Remuneration
We refer to note 35 of the consolidated financial statements for the remuneration and the incentives of the
Executive Board members and the Supervisory Board. The Executive Board members are the only employees
of the Company.
Participating interests
For the list of direct and indirect participating interests, we refer to notes 16 and 36 to the consolidated
financial statements.
Executive and Supervisory Board Statement

The members of the Supervisory Board signed the financial statements in order to comply with their statutory
obligation pursuant to art. 2:101 paragraph 2 Civil Code.
The members of the Executive Board signed the financial statements in order to comply with their statutory
obligation pursuant to art. 2:101 paragraph 2 Civil Code and art. 5:25c paragraph 2 sub c Financial Markets
Supervision Act.
Amsterdam, 22 February 2010 Executive Board Supervisory Board

Van Boxmeer Van Lede
Hooft Graafland De Jong
Das
de Carvalho
Hessels
Fentener van Vlissingen
MacLaurin
Minnick
Navarre
Annual Report 2009 – Heineken N.V. 

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Financial Statements

Raw materials, consumables and services 9 (9,650) (9,548)

Weighted average number of shares – basic 23 488,666,607 488,930,340

Annual Report 2009 – Heineken N.V. 

 Annual Report 2009 – Heineken N.V.

Annual Report 2009 – Heineken N.V. 

 Annual Report 2009 – Heineken N.V.

Net cash flow (245) 225

Cash and cash equivalents as at 1 January 604 309

Annual Report 2009 – Heineken N.V. 

 Annual Report 2009 – Heineken N.V.

Notes to the consolidated

Heineken is primarily involved in brewing and selling of beer.

(b) Basis of measurement

(c) Functional and presentation currency

(d) Use of estimates and judgements

Annual Report 2009 – Heineken N.V. 

2. Basis of preparation continued

• Note 6 Acquisitions and disposals of subsidiaries and minority interests

3. Significant accounting policies

(b) Change in accounting policies

Amendments to IAS 1 Presentation of financial statements

Amendments to IFRS 7 Financial instruments – Disclosures

Other standards and interpretations

 Annual Report 2009 – Heineken N.V.

(ii) Special Purpose Entities (SPEs)

(iii) Investments in associates

(iv) Joint ventures

Annual Report 2009 – Heineken N.V. 

3. Significant accounting policies continued

(d) Foreign currency

(ii) Foreign operations

 Annual Report 2009 – Heineken N.V.

(iii) Hedge of net investments in foreign operations

(e) Non-derivative financial instruments

Annual Report 2009 – Heineken N.V. 

3. Significant accounting policies continued

(iii) Available-for-sale investments

(iv) Investments at fair value through profit or loss

 Annual Report 2009 – Heineken N.V.

(ii) Cash flow hedges

(iii) Fair value hedges

Annual Report 2009 – Heineken N.V. 

3. Significant accounting policies continued

(g) Share capital

(ii) Repurchase of share capital (treasury shares)

(h) Property, Plant and Equipment (P, P & E)

 Annual Report 2009 – Heineken N.V.

(iii) Subsequent expenditure

(v) Gains and losses on sale

Annual Report 2009 – Heineken N.V. 

3. Significant accounting policies continued

Negative goodwill is recognised directly in the income statement as other income.

(iii) Customer-related and contract-based intangibles

 Annual Report 2009 – Heineken N.V.

(v) Subsequent expenditure

• Strategic brands 40 – 50 years

(vii) Gains and losses on sale

Annual Report 2009 – Heineken N.V. 

3. Significant accounting policies continued