Comparative Financial Analysis Report: Heineken and Farsons

This report conducts a comprehensive financial analysis comparing the performance of Heineken and Farsons, two prominent companies in the beverage industry. The analysis encompasses a detailed examination of their financial statements from 2015 to 2018, utilizing vertical, horizontal, and ratio analysis techniques to assess their financial health. The study evaluates key financial aspects such as profitability, liquidity, solvency, and working capital management. Vertical analysis assesses the proportional relationships within financial statements, while horizontal analysis examines trends over time. Ratio analysis provides insights into the companies' efficiency and solvency. The report also includes an evaluation of cash flow and working capital. The objective is to provide a comparative assessment to aid in decision-making regarding potential suppliers for beer manufacturers. The findings provide valuable insights into the financial strengths and weaknesses of both companies, supporting informed business decisions.

Financial Analysis
Management
&
Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
Overview of Companies:........................................................................................................1
EVALUATION OF OVERALL FINANCIAL PERFORMANCE AND FINANCIAL
POSITION OF HEINIKEN AND FARSONS................................................................................2
Vertical analysis of the financial statements:.........................................................................2
Ratio analysis of the financial statements:.............................................................................6
EVALUATION OF THE WORKING CAPITAL .........................................................................8
EVALUATION OF THE CASH FLOW.......................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
APPENDIX....................................................................................................................................13
.......................................................................................................................................................24

INTRODUCTION
Financial Analysis and management relates to procedures contributes in evaluation and
detailed assessment of fiscal and operating performance of a corporation take momentous and
reliable business or financial decisions. This system lets investors and shareholders to make
logical decisions related to investment made in securities and shares of a company. The study's
main goal is to provide an explanation about how financial data can be analysed through various
financial elements of company (Blum and Dacorogna, 2014). In this study, financial
recommendations are provided to beer-manufacturer company related to which corporation
either Farsons or Heineken is better, for supply of their beer and other beverage products. In this
study, a horizontal, vertical and ratio analysis is carried out against both firms. A cash flow
evaluation is also carried out in this study along with working capital to offer valid suggestions
for beer manufacturer.
Overview of Companies:
Simonds Farsons Cisk plc:
It is leading food and beverage corporation which is engaged in operations related to
brewing, producing or manufacturing, selling of beers brands and other beverages and soft-
drinks. Company is public limited corporation and company's securities are listed and trading in
Malta's stock and securities exchange. Corporation was formed in year 1928 and has grown
rapidly since then, due to which company has a trustworthy business image and unique brand
value (About Farsons. 2019).
Heineken
Company is beer manufacturer that operates throughout the globe and engaged in
operations like production, brewing, marketing, distribution and sale of beer and ciders.
Company has huge marketing-channel and network due to company's sales are much greater than
its core competitors. Company also launching innovative drinks and beer flavours time-to-time,
having a wider range of beer brands (About Heiniken. 2019).
1

EVALUATION OF OVERALL FINANCIAL PERFORMANCE AND
FINANCIAL POSITION OF HEINIKEN AND FARSONS
Vertical analysis of the financial statements:
Vertical analysis is a method of evaluating the financial reports by taking one component
of financial statement as a basic factor (generally total revenue) and then contrasting other
factors with this in order to determine how other factors influence an organization's revenues (El
Kasmioui and Ceulemans, 2012). In given case, vertical analysis has been done with respect to
both corporation's annual financial statements of 4years form year 2015 to year 2018 which are
attached in appendices, based on this data following is analysis of vertical FS of companies, as
follows:
Vertical analysis of Income Statement:
Simonds Farsons Cisk plc:
Sales figures are taken as base for whole analysis. It has been analysed from vertical P&L
of company that while sales of company Farsons is 100 percent then cost of sales are 63.29
percent in year2015, 61.18percent in year 2016, 61.36percent in year-2017 and 61.05percent in
year-2018. The purpose of such a vertical review is to decide whether Farsons Plc is able to pay-
off their distributors promptly to recommend the beer-manufacturer. Above decline in cost of
revenue percent indicates that company's operating effectiveness has been increased over this
period. Company's gross-margin percentages was 38.95 percent in 2018 which was 38.64percent,
38.82percent and 37.97percent respectively in year-2017, 2016 and 2015. While net-profit
margins were 10.13percent, 12.94percent, 13.64percent and 14.74percent continuously in year-
2015, 2016, 2017 and 2018 (Annual Report of Farsons. 2019). Overall trends shows that
company's gross-margin and net-profit margins have been increased over the period 2015 to
2018.
Company Heineken:
Vertical P&L of company Heineken exhibits that cost of sales of company are
47.25percent, 46.61percent, 46.23percent and 48.71percent of aggregate sales amount
respectively in year-2015,2016,2017 and 2018. In year 2018, company's cost of revenue has been
improved which indicate that company's operating efficiency has been decreased. Gross profit
percentages are 52.75percent, 53.39percent, 53.77percent and 51.29percent respectively in year-
2015, 2016,2017 and 2018. Trends gross profit percent shows that also in year 2018 company's
2

gross-margin has been dropped due to increased cost of sales. While Net profit proportion
company was 4.67percent in year 2015 which was dropped to 4.28% with ups and down. In 2016
net-profit was 3.75% while in year 2017 it was reached to 4.46percent. Aggregate changes in NP
percentage shows that company after 2017, corporation's net-profit generation capacity has been
declined (Annual Report of Heiniken. 2019).
Vertical analysis of Balance Sheet:
Simonds Farsons-Cisk plc:
Simonds vertical BS's analysis reflects that company's overall long -term debts and
liabilities level in total assets terms has been reached to 77.16% in year-2018 with a decrease
from 81.42percent in year-2017. On other-side current-assets balances shown increase from
18.58percent in year-2017 to 22.22percent in year-2018 while in 2015-2016 it was 21.48percent
& 20.25percent.
Level of SH's equity funds was around 67.11-percent of assets in year-2015 that was
shifted to 66.87-percent, 67.21-percent and 59.88-percent correspondingly in year-2016,2017
and 2018. Whereas sum of all liabilities was just 20.37-percent in year-2018 that were 32.79-
percent, 32.52-percent and 32.89-percent respectively in year-2015,2016 and 2017 (Annual
Report of Farsons. 2019).
Company Heineken:
Taking total assets amount as baseline, vertical analysis of company's balance sheet
exhibits that aggregate non-current assets including tangible and intangible assets are 84.32
percent, 79.31 percent, 79.90 percent and 78.38 percent during period of year-2015 to year-2018
respectively reflecting a declining trend in figures. Cash and liquid funds of company are 6.92
percent of entire assets in year-2018 which was 5.95 percent, 7.72 percent and 2.23 percent in
year-2017, 2016 and 2015 correspondingly which points out that company's cash funds are
decreased after 2016. On other-hand current assets of corporation are 21.62 percent in year 2018,
20.10percent in year-2017, 20.69percent in year-2016 and 15.68percent in year-2015 indicating
overall improvement in current asset level in company.
Shareholder's equity funds has covered 17.06percent part in company's entire assets in
year-2018v while in year-2017, 2016 and 2015 it was 16.16 percent, 16.78 percent and 17.90
percent respectively. Enterprise's current liabilities level was drooped from 26.44-percent to
3

24.91-percent in period 2016-2018. Further non-current liabilities level has been declined to
58.03% in year-2018 form 59.52percent in year-2015.
Horizontal Analysis of Financial Statements:
Horizontal analysis implies to systematic technique utilized for effective evaluation of
financial information where previous or just recent period is considered as base-line and
thereafter each element and item reported in financial-statements are compared with figures
stated in baseline period (Eng, Lea, and Cai, 2014). Core objective of a horizontal analysis is
assessment of true growth either negative or positive and variance in performance of corporation
based on each item's variance.
Horizontal analysis of Income-statements:
Simonds Farsons Cisk plc:
Company's horizontal income-statement shows that in 2018 increment in revenue was
7.95 percent while this increase in 2017 and 2016 was just 3.53% and 7.59% respectively. It
shows that company's sales generating efficiencies has been grown. Along with increase
company's cost of sales has been increase by almost same percentage of 7.41% in year 2018.
While company's gross-profits are reported an increment of 8.82% in year-2018 which was 10-
percent and 3.03-percent in year-2016 and 2017. Increment in Net-profits was 16.67% in year-
2018 which was 37.50-percent in year-2016 while in year-2017 it was only increased by 9.09-
percent which reflects that net-profitability position of corporation has been enhanced after year-
2017. Entire analysis represents that company's profitability position has been increased.
Company Heineken:
Horizontal analysis of Heinkeken shows that company's turnover has been grown by
2.66% in year 2018 while in year-2016 and 2017 such growth was around 1.37percent and
around 5.27-percent. Company's cost of sales has reported a growth of 0.01percent, 4.40-percent
and 8.18-percent during year-2016, 2017 and 2018. Growth in gross profits has been reached to
negative 2.08 percent in year-2018 while in 2016 and 2017 there was increase of 2.59-percent
and 6.04-percent. Company's net-income figures has shown a negative growth of 1.64 percent
and 18.60-percent in year-2018 and 2016 only a positive growth of 25.42-percent in year-2018.
Overall performance growth in term of profitability of company is not so much good as there are
negative growth in gross as well as net profits' figures.
Horizontal analysis of Balance Sheet:
4

Simonds Farsons Cisk plc:
Horizontal BS of Simonds shows that shareholder's equity-funds balance has been
achieved a negative growth of 21.14% in year-2018 while increment in year-2017 and 2016 was
12.84-percent and 9-percent respectively reflecting a overall declining trend. While long-term
debts funds also declined by around 2.86-percent in year-2018 that was increased by 20.69-
percent in year-2017 and declined by 3.33% in year-2016. Current or short-run liabilities of
company has been grown by 33.33-percent in year-2018 and 2016 but in 2017 there was no
fluctuation.
Level of current assets has been achieved a 5.88-percent in year-2018, that growth in
2017 and 2016 was 3.03-percent and 3.13-percent, indicating a upward trend in current-assets'
level. Non-current assets reported negative growth of 77.16-percent in year-2018 while
increment in non-current assets in year-2016 and 2017 was 10.26-percent and 15.50-percent.
Cash balance of company has been attained 300% growth in year-2018 while there as negative
growth in cash-funds of 60 and 50 percent in year-2016 and 2017. Overall assets of Simonds
declined by around 11.48-percent in year-2018 while there was increase of 12.27-percent and
9.4percent in year-2016 and 2017.
Company Heineken:
Analyzing Horizontal BS of Heiniken provides that company's equity funds raised by
7.91-percent in year 2018 while changes in equity funds were -2.25 % and 0.53 % respectively in
year-2016 and 2017. Long-term debt funds just grown by around 1.69-percent during year-2018
that was reported increments of -0.54 percent and 7.24percent in year-2016 and 2017. Current
liabilities level in company has reported minor negative growth of 0.08-percent that was
enhanced by around 0.59-percent and 22.09-percent in year-2017 and 2016.
Cumulative cash and equivalent figures has been grown by around 268.33-percent in
year-2016 that was declined in year-2017 by 19.54-percent and ultimately increased by 18.88-
percent in year-2017. Current assets in company achieved a growth of 37.59-percent, 1.36-
percent and 9.97-percent correspondingly in year-2016, 2017 and 2018. On other-side non-
current ( both tangible and tangle) assets are shown a minor growth of around 0.31-percent in
year-2018, this growth rate in year-2017 was 5.14% and 1.94% in year-2016.
5

Ratio analysis of the financial statements:
Ratio analysis is way to gain insight into the corporation's operating efficiency and
solvency. This helps in decision-making process so that the interested parties and prospective
customers can make a quantified financial decision. Even in this case, ratio analysis technique is
important as vertical analysis performed above represents company's efficiency outputs and
horizontal analysis suggests the performance effectiveness factors of both selected corporation
(Isberg and Pitta, 2013). In this situation, ratio analysis is conducted to examine both firms'
liquidity, profit making efficiency and solvency, so that a systematic decision can be made that
could support the beer's future potential suppliers.
Profitability Analysis: It simply reflects corporation's profitability making capacities. Through
gross-margin ratio and net-profit ratio of companies their profitability position can be easily
determined (Palepu and Healy, 2013). Following are the ratios of both respective corporation in
this context, as follows:
Net-profit Ratio
Net Margin 2015 2016 2017 2018
Farsons 10.11% 13.22% 13.77% 14.49%
Heineken 4.67% 3.75% 4.46% 4.28%
6

Net profit ratio is crucial profitability measure that represents enterprise's profit earning
capacity after providing overall expenses. Company Farsons reported net-profit ratio in percent
are 14.49, 13.77, 13.22 and 10.11 in year-2018,2017,2016 and 2015 reflecting a upward trend.
While Heiniken's net-profit ratio percent during the same years are 4.28, 4.46, 3.75 and 4.67
respectively which shows that in 2016 and 2018 net-profit rate has been dropped. It means that
company's net profitability level has been decreased. Farsons's profitability level and growth is
higher than Heineken.
Gross Profit
Gross Margin 2015 2016 2017 2018
Farsons 37.97% 38.82% 38.64% 38.95%
Heineken 52.75% 53.39% 53.77% 51.29%
Gross profit rate or ratio of a company represents that company's operational
effectiveness as here in this gross profit is considered which is profits though company's core
business operations (O'Donnell, Kramar and Dyball, 2013). Here above table and graph shows
that Heineken's gorss margin percent i.e. 51.29-percent is higher than Farsons's gross-margin rate
i.e. 38.95-percent in year-2018. Farsons's gross-margin percent are 37.97, 38.82, 38.64 and 38.95
in year-2015, 2016,2017 and 2018. Which indicates a upward growth in gross-margin. While
during same period gross-margin percentages of Heineken were 52.75, 53.39, 53.77 and 51.29
7

that shows decrement in gross-margin rate in year 2018. It implies that company's efficiencies to
generate profits form core operations has been declined.
Current Ratio:
Current Ratio 2015 2016 2017 2018
Farsons 1.72 1.39 1.39 1.12
Heineken 0.69 0.78 0.79 0.87
A company's current ratio actually reflects company's short-term current liquidity
position. It reflects relationship among current assets level and current liabilities level in corm
pay. It shows efficiency of company to make payment of its all short-term debts and obligation
during a specific time-frame (Post and Byron, 2015). Normally 2:1 is regarded as most
appropriate and effective level of current ratio below this represents adverse liquidity position.
Above graph displays that Heiniken has reported current-ratio of 0.69,0.78, 0.79 and 0.87 in
year-2015, 2016,2017and 2018 whereas Farsons's overall current ratio Current Ratio has been
dropped down to 1.12 in year-2015 from 1.72 in year-2018. Both companies' reported current
ratios are below the specified criteria but comparative evaluation shows that Farsons's position in
liquidity in much better than company Heiniken.
EVALUATION OF THE WORKING CAPITAL
Working capital is sum that an organization preserves to efficiently perform the
corporation's regular processes. It is a fiscal metric that helps to determine the business's liquidity
8

stance. It is necessary to assess and evaluate both firms ' working capital because it can help the
beer producer recognize which corporation is more stable and able of sufficiently paying off the
provider's or supplies dues (Sheikhi, Ranjbar and Oraee, 2012). In this scenario, two beer
manufacturing firms, Heineken and Farsons Plc, are listed and their net-working capital figures
are carried out below:
Farsons Heineken
(EUR in
Million) 2015 2016 2017 2018 2015 2016 2017 2018
Current
Assets 32 33 34 36 5914 8137 8248 9070
Current
Liabilities 18 24 24 32 8516 10397 10458 10450
Working
Capital 14 9 10 4 -2602 -2260 -2210 -1380
Farsons
Above tables exhibits that Farsons's current assets (EUR in million) are: 36428, 33682,
33407 and 32597 in year-2018,2017, 2016 and 2015 reflecting an overall increments in current
assets while company's current liabilities (EUR in million) have been reached to 32444 which
was in year 2015 of 19299. Resulted working capital of company are around 14, 9, 10 and 4
million in year-2015, 2016,2017 and 2018 respectively pointing towards declining trend in
company's working-capital level.
Heineken
Company's current assets have been increased from 5914 million to 9070 million during
2015 to 2018. On other side company's current-liabilities have been increased from 8516 million
in year 2015 to 10450million in year 2018 although in this year company's current liabilities has
been declined by around 8 million. Applying these figures computed net working-capital of
company is negative in all years which are: -1380, -2210, -2260 and -2602million in year
2018,2017 , 2016 and 2015 correspondingly.
9

Both companies' comparison reflects that Farosns has reported positive and increased
working capital figures while Heineken has reported negative figures of working capital which
indicates that company has shortage of funds to operate routine business processes. Thus Farsons
is more efficient as per evaluation of working-capital position.
EVALUATION OF THE CASH FLOW
A cash flow report or statement is crucial document which provides details about net in
and out flow cash or monies in an enterprise. A cash-flow is prepared by companies by
classifying business tasks into financing, operating and investments (Vogel, 2014). Through
aggregation of these all activities' cash flows company's net free-cash-flows are determined.
Analysis of cash-flows is significant to assess adequacy of liquid cash-funds in company to
operate business activities. It also aid in controlling overall cash spending and receipts within
corporation.
Heiniken: Corporation's cash-flows generated by operational activities are 3489, 3718,
3882 and 4388 in 2015,2016,2017 and 2018 (figure are in million) respectively. While overall
net outflows of corporation by its all investment tasks from 2015 to 2018 are: 2064, 2,007, 2965
and 2355-million respectively. Through financing operations company's cash-flows are
1173million, 672, 966 and 967-million respectively during period 2015-2018. By summarizing
all cash in-out flows from different activities net-free cash-flows are: 1759, 1,852, 2,049and
2,333 million in year-2015,2016, 2017 and 2018 correspondingly and indicating up ward or
increasing trend. Throughout the entire period business has reported positive balance of free-
cash-flow it means company's liquidity situation in sound and efficient to pay all short-term
liabilities.
Farsons: Cash-flows generated by company Farsons are around 16, 16, 13 and 21million
during 2015 to 2018 respectively, reflecting increment in cash generation capacity of company.
Where as though investing task company has made outflows of 7, 18, 20 and 21 million during
2015,2016,2017 and 2018 year respectively. Corporation's financing operation have lead to cash-
flows of -4, -2, 4 and -1 millions through year-2015, 2016,2017 and 2018 respectively. Overall
net cash-flows in business after considering all activities are 9, -1, -6 and 7million during year-
2015,2016, 2017 and2018 respectively. These reported figures shows that during after period of
2016, in business cash-flows goes negative which are further improved in 2018. A negative cash-
10

flows figure reflecting that corporation is not so much efficient to generate cash from business
and paying-off its obligations (Lee and et.al., 2018).
Comparison of both companies cash-flows evaluation exhibits that Heiniken's liquidity
and operational performance is more adequate as compare to another corporation Farsons. As in
Heiniken company has positive-cash flow balance throughout the entire period while Farosns
negative free-cash-flows shows that company is not financially strong and unable to make all
payments of its short-term dues.
CONCLUSION
It has been inferred from above study that financial analysis is method of reviewing
income statement, balance sheet and cash flow statement so that company's financial condition
could be assessed in a sector. Financial analysis also act as crucial aspect of financial decision-
making processes. Though above financial analysis in context of Farsons and Heineken Plc., it
has been evaluated that company Farsons Plc., is much finer and effective organization so
company can be selected as supplier for beer manufacture company.
11

REFERENCES
Books and Journals:
Blum, P. and Dacorogna, M., 2014. DFA‐Dynamic Financial Analysis. Wiley StatsRef: Statistics
Reference Online.
El Kasmioui, O. and Ceulemans, R., 2012. Financial analysis of the cultivation of poplar and
willow for bioenergy. Biomass and bioenergy, 43, pp.52-64.
Eng, L. L., Lea, B. R. and Cai, R., 2014. Use of clickers for assurance of learning in introductory
financial accounting. In Advances in Accounting Education: Teaching and Curriculum
Innovations (pp. 269-291). Emerald Group Publishing Limited.
Isberg, S. and Pitta, D., 2013. Using financial analysis to assess brand equity. Journal of Product
& Brand Management, 22(1), pp.65-78.
Palepu, K.G. and Healy, P.M., 2013. Business analysis and valuation: Using financial
statements, text and cases.
O'Donnell, L., Kramar, R. and Dyball, M., 2013. Complementing a positivist approach to
investment analysis with critical realism: challenges and a way forward. Qualitative
Research in Financial Markets. 5(1). pp.6-25.
Post, C. and Byron, K., 2015. Women on boards and firm financial performance: A meta-
analysis. Academy of Management Journal, 58(5), pp.1546-1571.
Sheikhi, A., Ranjbar, A.M. and Oraee, H., 2012. Financial analysis and optimal size and
operation for a multicarrier energy system. Energy and buildings, 48, pp.71-78.
Vogel, H.L., 2014. Entertainment industry economics: A guide for financial analysis. Cambridge
University Press.
Lee, E. and et.al., 2018. Unintended Consequences of Economic Interventionism on Accounting
Conservatism: A Natural Experiment. Available at SSRN 3264746.
Najeeb, S. F., Bacha, O. and Masih, M., 2015. Does heterogeneity in investment horizons affect
portfolio diversification? Some insights using M-GARCH-DCC and wavelet correlation
analysis. Emerging Markets Finance and Trade. 51(1). pp.188-208.
Online:
About Farsons, 2019. [Online]. Available through: <https://www.farsons.com/en/who-we-are>
About Heiniken, 2019. [Online]. Available through:
<https://www.theheinekencompany.com/About-Us>
Annual Report of Farsons, 2019. [Online]. Available through:
<https://www.farsons.com/en/financial-statements-archive>
Annual Report of Heiniken, 2019. [Online]. Available through:
<https://www.theheinekencompany.com/Investors/Reports-and-Presentations?
Skip=0&Take=10&SubjectFilters=A5E16FC3A19A420681BE3A925F4DADCF>
12

APPENDIX
HEINEKEN INCOME STATEMENT
Fiscal year ends in December. EUR in
millions except per share data.
201
5-12
Percen
t
201
6-12
Perce
nt
201
7-12
Perc
ent
201
8-12
Perce
nt
Revenue
205
11
100.0
0%
207
92
100.0
0%
218
88
#DI
V/0!
224
71
100.0
0%
Cost of revenue
969
1 0.24%
969
2
0.26
%
101
18
0.00
%
109
46
48.71
%
Gross profit
108
20 0.15%
111
00
0.16
%
117
70
0.00
%
115
25
51.29
%
Operating expenses
Sales, General and administrative
275
5 0.09%
283
6
0.11
%
291
3
0.00
%
249
4
11.10
%
Other operating expenses
540
1 0.00%
555
5
0.00
%
558
1
0.00
%
596
9
26.56
%
Total operating expenses
815
6 0.10%
839
1
0.11
%
849
4
0.00
%
846
3
37.66
%
Operating income
266
4 0.05%
270
9
0.06
%
327
6
0.00
%
306
2
13.63
%
Interest Expense 412 0.00% 419
0.00
% 468
0.00
% 493
2.19
%
Other income (expense) 586 0.00% 122
0.00
% 100
0.00
% 283
1.26
%
Income before taxes
283
8 0.04%
241
2
0.05
%
290
8
0.00
%
285
2
12.69
%
Provision for income taxes 697 - 673 0.00 755 0.00 757 3.37
13

0.02% % % %
Net income from continuing operations
214
1 0.06%
173
9
0.06
%
215
3
0.00
%
209
5
9.32
%
Other
-
118
4
-
0.02% -960
0.00
%
-
117
6
0.00
%
-
113
4
-
5.05
%
Net income 957 0.04% 779
0.06
% 977
0.00
% 961
4.28
%
Net income available to common
shareholders 957 0.04% 779
0.06
% 977
0.00
% 961
4.28
%
Fiscal year ends in December. EUR in
millions except per share data.
201
5-12
Varian
ce (%)
201
6-12
Varia
nce
(%)
201
7-12
Vari
ance
(%)
201
8-12
Varia
nce
(%)
Revenue
205
11 -
207
92
1.37
%
218
88
5.27
%
224
71
2.66
%
Cost of revenue
969
1 -
969
2
0.01
%
101
18
4.40
%
109
46
8.18
%
Gross profit
108
20 -
111
00
2.59
%
117
70
6.04
%
115
25
-
2.08
%
Operating expenses -
Sales, General and administrative
275
5 -
283
6
2.94
%
291
3
2.72
%
249
4
-
14.38
%
Other operating expenses
540
1 -
555
5
2.85
%
558
1
0.47
%
596
9
6.95
%
14

Total operating expenses
815
6 -
839
1
2.88
%
849
4
1.23
%
846
3
-
0.36
%
Operating income
266
4 -
270
9
1.69
%
327
6
20.9
3%
306
2
-
6.53
%
Interest Expense 412 - 419
1.70
% 468
11.6
9% 493
5.34
%
Other income (expense) 586 - 122
-
79.18
% 100
-
18.0
3% 283
183.0
0%
Income before taxes
283
8 -
241
2
-
15.01
%
290
8
20.5
6%
285
2
-
1.93
%
Provision for income taxes 697 - 673
-
3.44
% 755
12.1
8% 757
0.26
%
Net income from continuing operations
214
1 -
173
9
-
18.78
%
215
3
23.8
1%
209
5
-
2.69
%
Other
-
118
4 - -960
-
18.92
%
-
117
6
22.5
0%
-
113
4
-
3.57
%
Net income 957 - 779
-
18.60
% 977
25.4
2% 961
-
1.64
%
Net income available to common
shareholders
957 - 779 -
18.60
977 25.4
2%
961 -
1.64
15

% %
HEINEKEN
BALANCE SHEET
2015-
12 %
2016-
12 %
2017-
12 %
2018-
12 %
Assets
Current assets
Cash
Cash and cash equivalents 824
2.18
% 3035
7.72
% 2442
5.95
% 2903
6.92
%
Short-term investments 16
0.04
%
Total cash 840
2.23
% 3035
7.72
% 2442
5.95
% 2903
6.92
%
Receivables 2169
5.75
% 2283
5.81
% 2582
6.29
% 2588
6.17
%
Inventories 1702
4.51
% 1618
4.11
% 1814
4.42
% 1920
4.58
%
Prepaid expenses 343
0.91
% 328
0.83
% 399
0.97
% 382
0.91
%
Other current assets 860
2.28
% 873
2.22
% 1011
2.46
% 1277
3.04
%
Total current assets 5914
15.68
% 8137
20.69
% 8248
20.10
% 9070
21.62
%
Non-current assets
16

Property, plant and equipment
Gross property, plant and equipment
1978
6
52.46
%
1953
8
49.69
%
2137
2
52.08
%
2219
2
52.89
%
Accumulated Depreciation
-
1023
4
-
27.14
%
-
1030
6
-
26.21
%
-
1025
5
-
24.99
%
-
1083
3
-
25.82
%
Net property, plant and equipment 9552
25.33
% 9232
23.48
%
1111
7
27.09
%
1135
9
27.07
%
Goodwill
1132
4
30.03
%
1102
9
28.05
%
1120
5
27.31
%
1119
4
26.68
%
Intangible assets 6859
18.19
% 6395
16.26
% 6465
15.76
% 6265
14.93
%
Deferred income taxes 958
2.54
% 1011
2.57
% 768
1.87
% 622
1.48
%
Other long-term assets 3107
8.24
% 3517
8.94
% 3231
7.87
% 3446
8.21
%
Total non-current assets
3180
0
84.32
%
3118
4
79.31
%
3278
6
79.90
%
3288
6
78.38
%
Total assets
3771
4
100.0
0%
3932
1
100.0
0%
4103
4
100.0
0%
4195
6
100.0
0%
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 1339
3.55
% 3028
7.70
% 2563
6.25
% 1680
4.00
%
Capital leases 5
0.01
%
17

Accounts payable 3403
9.02
% 3562
9.06
% 4037
9.84
% 4016
9.57
%
Taxes payable 1185
3.14
% 1231
3.13
% 1234
3.01
% 1326
3.16
%
Other current liabilities 2584
6.85
% 2576
6.55
% 2624
6.39
% 3428
8.17
%
Total current liabilities 8516
22.58
%
1039
7
26.44
%
1045
8
25.49
%
1045
0
24.91
%
Non-current liabilities
Long-term debt
1061
6
28.15
%
1094
4
27.83
%
1224
4
29.84
%
1262
8
30.10
%
Capital leases 10
0.03
%
Deferred taxes liabilities 1858
4.93
% 1672
4.25
% 1495
3.64
% 1370
3.27
%
Pensions and other benefits 1289
3.42
% 1420
3.61
% 1289
3.14
% 954
2.27
%
Minority interest 8320
22.06
% 7975
20.28
% 7888
19.22
% 8382
19.98
%
Other long-term liabilities 355
0.94
% 315
0.80
% 1027
2.50
% 1014
2.42
%
Total non-current liabilities
2244
8
59.52
%
2232
6
56.78
%
2394
3
58.35
%
2434
8
58.03
%
Total liabilities
3096
4
82.10
%
3272
3
83.22
%
3440
1
83.84
%
3479
8
82.94
%
Stockholders' equity
Common stock 461 1.22 461 1.17 461 1.12 461 1.10
18

% % % %
Additional paid-in capital 1257
3.33
% 1257
3.20
% 1257
3.06
% 1257
3.00
%
Retained earnings 5143
13.64
% 5248
13.35
% 5782
14.09
% 6377
15.20
%
Accumulated other comprehensive
income -111
-
0.29
% -368
-
0.94
% -867
-
2.11
% -937
-
2.23
%
Total stockholders' equity 6750
17.90
% 6598
16.78
% 6633
16.16
% 7158
17.06
%
Total liabilities and stockholders'
equity
3771
4
100.0
0%
3932
1
100.0
0%
4103
4
100.0
0%
4195
6
100.0
0%
2015-
12 %
2016-
12 %
2017-
12 %
2018-
12 %
Assets
Current assets
Cash
Cash and cash equivalents 824 -% 3035
268.3
3% 2442
-
19.54
% 2903
18.88
%
Short-term investments 16 -%
Total cash 840 -% 3035
261.3
1% 2442
-
19.54
% 2903
18.88
%
Receivables 2169 -% 2283
5.26
% 2582
13.10
% 2588
0.23
%
19

Inventories 1702 -% 1618
-
4.94
% 1814
12.11
% 1920
5.84
%
Prepaid expenses 343 -% 328
-
4.37
% 399
21.65
% 382
-
4.26
%
Other current assets 860 -% 873
1.51
% 1011
15.81
% 1277
26.31
%
Total current assets 5914 -% 8137
37.59
% 8248
1.36
% 9070
9.97
%
Non-current assets
Property, plant and equipment
Gross property, plant and equipment
1978
6 -%
1953
8
-
1.25
%
2137
2
9.39
%
2219
2
3.84
%
Accumulated Depreciation
-
1023
4 -%
-
1030
6
0.70
%
-
1025
5
-
0.49
%
-
1083
3
5.64
%
Net property, plant and equipment 9552 -% 9232
-
3.35
%
1111
7
20.42
%
1135
9
2.18
%
Goodwill
1132
4 -%
1102
9
-
2.61
%
1120
5
1.60
%
1119
4
-
0.10
%
Intangible assets 6859 -% 6395
-
6.76
% 6465
1.09
% 6265
-
3.09
%
Deferred income taxes 958 -% 1011 5.53 768 - 622 -
20

%
24.04
%
19.01
%
Other long-term assets 3107 -% 3517
13.20
% 3231
-
8.13
% 3446
6.65
%
Total non-current assets
3180
0 -%
3118
4
-
1.94
%
3278
6
5.14
%
3288
6
0.31
%
Total assets
3771
4 -%
3932
1
4.26
%
4103
4
4.36
%
4195
6
2.25
%
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 1339 -% 3028
126.1
4% 2563
-
15.36
% 1680
-
34.45
%
Capital leases 5 -%
Accounts payable 3403 -% 3562
4.67
% 4037
13.34
% 4016
-
0.52
%
Taxes payable 1185 -% 1231
3.88
% 1234
0.24
% 1326
7.46
%
Other current liabilities 2584 -% 2576
-
0.31
% 2624
1.86
% 3428
30.64
%
Total current liabilities 8516 -%
1039
7
22.09
%
1045
8
0.59
%
1045
0
21

Non-current liabilities
Long-term debt
1061
6 -%
1094
4
3.09
%
1224
4
11.88
%
1262
8
3.14
%
Capital leases 10 -%
Deferred taxes liabilities 1858 -% 1672
-
10.01
% 1495
-
10.59
% 1370
-
8.36
%
Pensions and other benefits 1289 -% 1420
10.16
% 1289
-
9.23
% 954
-
25.99
%
Minority interest 8320 -% 7975
-
4.15
% 7888
-
1.09
% 8382
6.26
%
Other long-term liabilities 355 -% 315
-
11.27
% 1027
226.0
3% 1014
-
1.27
%
Total non-current liabilities
2244
8 -%
2232
6
-
0.54
%
2394
3
7.24
%
2434
8
1.69
%
Total liabilities
3096
4 -%
3272
3
5.68
%
3440
1
5.13
%
3479
8
1.15
%
Stockholders' equity
Common stock 461 -% 461
0.00
% 461
0.00
% 461
0.00
%
Additional paid-in capital 1257 -% 1257
0.00
% 1257
0.00
% 1257
0.00
%
Retained earnings 5143 -% 5248 2.04 5782 10.18 6377 10.29
22

% % %
Accumulated other comprehensive
income -111 -% -368
231.5
3% -867
135.6
0% -937
8.07
%
Total stockholders' equity 6750 -% 6598
-
2.25
% 6633
0.53
% 7158
7.91
%
Total liabilities and stockholders'
equity
3771
4 -%
3932
1
4.26
%
4103
4
4.36
%
4195
6
2.25
%
SIMONDS FARSONS CISK PLC
(SFC) CashFlowFlag INCOME
STATEMENT
Income Statement
Fiscal year ends in January. EUR in
millions except per share data.
2015-
01
2016-
01
2017-
01
2018-
01
Revenue 79
100.0
0% 85
100.0
0% 88
100.0
0% 95
100.0
0%
Cost of revenue 50
63.29
% 52
61.18
% 54
61.36
% 58
61.05
%
Gross profit 30
37.97
% 33
38.82
% 34
38.64
% 37
38.95
%
Operating expenses
Sales, General and administrative 19
24.05
% 21
24.71
% 22
25.00
% 22
23.16
%
Other operating expenses 0
0.00
% 0
0.00
% 0
0.00
%
0.00
%
23

Total operating expenses 20
25.32
% 22
25.88
% 22
25.00
% 22
23.16
%
Operating income 10 12.66
%
11 12.94
%
13 14.77
%
15 15.79
%
Interest Expense 1 1.27
%
1 1.18
%
1 1.14
%
1 1.05
%
Other income (expense) -0 0.00
%
-0 0.00
%
-0 0.00
%
0 0.00
%
Income before taxes 8 10.13
%
10 11.76
%
11 12.50
%
13 13.68
%
Provision for income taxes -5
-
6.33
% -1
-
1.18
% -0
0.00
%
-1
-
1.05
%
Net income from continuing operations 13 16.46
%
11 12.94
%
12 13.64
%
14 14.74
%
Net income from discontinuing ops -5
-
6.33
% 0
0.00
%
0
0.00
%
-1
-
1.05
%
Net income 8 10.13
%
11 12.94
%
12 13.64
%
14 14.74
%
Net income available to common
shareholders
8 10.13
%
11 12.94
%
12 13.64
%
14 14.74
%
Income Statement
Fiscal year ends in January. EUR in
millions except per share data.
2015-
01
2016-
01
2017-
01
2018-
01
24

Revenue 79 -% 85
7.59
% 88
3.53
% 95
7.95
%
Cost of revenue 50 -% 52 4.00
%
54 3.85
%
58 7.41
%
Gross profit 30 -% 33 10.00
%
34 3.03
%
37 8.82
%
Operating expenses
Sales, General and administrative 19 -% 21 10.53
%
22 4.76
%
22 0.00
%
Other operating expenses
Total operating expenses 20 -% 22 10.00
%
22 0.00
%
22 0.00
%
Operating income 10 -% 11 10.00
%
13 18.18
%
15 15.38
%
Interest Expense 1 -% 1 0.00
%
1 0.00
%
1 0.00
%
Other income (expense) -0 -%
Income before taxes 8 -% 10 25.00
%
11 10.00
%
13 18.18
%
Provision for income taxes -5 -% -1
-
80.00
% -1
Net income from continuing operations 13 -% 11
-
15.38
% 12
9.09
%
14
16.67
%
Net income from discontinuing ops -5 -%
Net income 8 -% 11 37.50 12 9.09 14 16.67
25

% % %
Net income available to common
shareholders 8 -% 11
37.50
% 12
9.09
% 14
16.67
%
SIMONDS FARSONS CISK PLC
(SFC) CashFlowFlag BALANCE
SHEET
Fiscal year ends in January. EUR in
millions except per share data.
2015-
01 %
2016-
01 %
2017-
01 %
2018-
01 %
Assets
Current assets
Cash
Cash and cash equivalents 5
3.36
% 2
1.23
% 1
0.55
% 4
2.47
%
Total cash 5
3.36
% 2
1.23
% 1
0.55
% 4
2.47
%
Receivables 12
8.05
% 12
7.36
% 13
7.10
% 15
9.26
%
Inventories 10
6.71
% 12
7.36
% 15
8.20
% 14
8.64
%
Other current assets 5
3.36
% 7
4.29
% 6
3.28
% 4
2.47
%
Total current assets 32
21.48
% 33
20.25
% 34
18.58
% 36
22.22
%
Non-current assets
26

Property, plant and equipment
Gross property, plant and equipment 180
120.8
1% 194
119.0
2% 213
116.3
9% 224
138.2
7%
Accumulated Depreciation -99
-
66.44
% -104
-
63.80
% -102
-
55.74
% -109
-
67.28
%
Net property, plant and equipment 80
53.69
% 90
55.21
% 111
60.66
% 116
71.60
%
Goodwill 1
0.67
%
Intangible assets
Deferred income taxes 2
1.34
% 4
2.45
% 3
1.64
% 5
3.09
%
Other long-term assets 34
22.82
% 34
20.86
% 34
18.58
% 4
2.47
%
Total non-current assets 117
78.52
% 129
79.14
% 149
81.42
% 125
77.16
%
Total assets 149
100.0
0% 163
100.0
0% 183
100.0
0% 162
100.0
0%
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 2
1.34
% 3
1.84
% 4
2.19
% 10
6.17
%
Capital leases
Accounts payable 4
2.68
% 8
4.91
% 5
2.73
% 5
3.09
%
27

Taxes payable 2
1.34
% 2
1.23
% 2
1.09
% 3
1.85
%
Other current liabilities 10
6.71
% 10
6.13
% 13
7.10
% 15
9.26
%
Total current liabilities 18
12.08
% 24
14.72
% 24
13.11
% 32
19.75
%
Non-current liabilities
Long-term debt 22
14.77
% 24
14.72
% 31
16.94
% 33
20.37
%
Capital leases 1
0.55
% 1
0.62
%
Other long-term liabilities 8
5.37
% 5
3.07
% 4
2.19
% 1
0.62
%
Total non-current liabilities 30
20.13
% 29
17.79
% 35
19.13
% 34
20.99
%
Total liabilities 49
32.89
% 53
32.52
% 60
32.79
% 67
41.36
%
Stockholders' equity
Common stock 9
6.04
% 9
5.52
% 9
4.92
% 9
5.56
%
Retained earnings 39
26.17
% 47
28.83
% 56
30.60
% 39
24.07
%
Accumulated other comprehensive
income 52
34.90
% 53
32.52
% 58
31.69
% 49
30.25
%
Total stockholders' equity 100
67.11
% 109
66.87
% 123
67.21
% 97
59.88
%
Total liabilities and stockholders' 149 100.0 163 100.0 183 100.0 162 100.0
28

equity 0% 0% 0% 0%
Fiscal year ends in January. EUR in
millions except per share data.
2015-
01 %
2016-
01 %
2017-
01 %
2018-
01 %
Assets
Current assets
Cash
Cash and cash equivalents 5 -% 2
-
60.00
% 1
-
50.00
% 4
300.0
0%
Total cash 5 -% 2
-
60.00
% 1
-
50.00
% 4
300.0
0%
Receivables 12 -% 12
0.00
% 13
8.33
% 15
15.38
%
Inventories 10 -% 12
20.00
% 15
25.00
% 14
-
6.67
%
Other current assets 5 -% 7
40.00
% 6
-
14.29
% 4
-
33.33
%
Total current assets 32 -% 33
3.13
% 34
3.03
% 36
5.88
%
Non-current assets
Property, plant and equipment
Gross property, plant and equipment 180 -% 194 7.78 213 9.79 224 5.16
29

% % %
Accumulated Depreciation -99 -% -104
5.05
% -102
-
1.92
% -109
6.86
%
Net property, plant and equipment 80 -% 90
12.50
% 111
23.33
% 116
4.50
%
Goodwill 1 -%
Intangible assets
Deferred income taxes 2 -% 4
100.0
0% 3
-
25.00
% 5
66.67
%
Other long-term assets 34 -% 34
0.00
% 34
0.00
% 4
-
88.24
%
Total non-current assets 117 -% 129
10.26
% 149
15.50
% 125
-
16.11
%
Total assets 149 -% 163
9.40
% 183
12.27
% 162
-
11.48
%
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 2 -% 3
50.00
% 4
33.33
% 10
150.0
0%
Capital leases
Accounts payable 4 -% 8 100.0 5 - 5 0.00
30

0%
37.50
% %
Taxes payable 2 -% 2
0.00
% 2
0.00
% 3
50.00
%
Other current liabilities 10 -% 10
0.00
% 13
30.00
% 15
15.38
%
Total current liabilities 18 -% 24
33.33
% 24
0.00
% 32
33.33
%
Non-current liabilities
Long-term debt 22 -% 24
9.09
% 31
29.17
% 33
6.45
%
Capital leases 1 1
Other long-term liabilities 8 -% 5
-
37.50
% 4
-
20.00
% 1
-
75.00
%
Total non-current liabilities 30 -% 29
-
3.33
% 35
20.69
% 34
-
2.86
%
Total liabilities 49 -% 53
8.16
% 60
13.21
% 67
11.67
%
Stockholders' equity
Common stock 9 -% 9
0.00
% 9
0.00
% 9
-
2.86
%
Retained earnings 39 -% 47
20.51
% 56
19.15
% 39
-
30.36
%
31

Accumulated other comprehensive
income 52 -% 53
1.92
% 58
9.43
% 49
-
15.52
%
Total stockholders' equity 100 -% 109
9.00
% 123
12.84
% 97
-
21.14
%
Total liabilities and stockholders'
equity 149 -% 163
9.40
% 183
12.27
% 162
-
11.48
%
32

Heineken Cash-flows:
33

Farsons Cash-flows:
34