A PROUD HISTORY - surinaamsebrouwerij.com · by HEINEKEN N.V., was a shareholder right from the start. The Surinamese beer was of excellent quality from the start, as witnessed by

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1Surinaamse Brouwerij N.V. Annual Report 2014

A PROUD HISTORY The roots of Surinaamse Brouwerij N.V. lie in the Dutch province of Zeeland where the brothers Piet and Arthur Dumoleyn decided around 1950 to expand their brewery business in Suriname. Suriname, at that time a part of the Netherlands, did not have its own brewery.

In October 1955, the brewery was officially opened by his Majesty Prince Bernhard, Prins der Nederlanden. At the end of December 1955, we produced the first PARBO BIER. Amstel Brouwerij N.V., which was taken over in 1968 by HEINEKEN N.V., was a shareholder right from the start.

The Surinamese beer was of excellent quality from the start, as witnessed by it being awarded the Prix d‘Excellence in 1958 during the world beer convention in Gent in Belgium. Quality has always played an important role in our business policy. In this way, we were among the first breweries in North and South America to achieve both ISO and HACCP certificates.

Nowadays, our aim is to produce and sell beer which meets all the international standards. This policy is focused on realising profitable and sustainable growth with the aim of strengthening the position of the business. In doing so, we seek to achieve an optimum return for shareholders, continued satisfaction amongst customers and consumers, optimum welfare of our employees, and socially responsible business practices and involvement.

We brew, produce, sell, and distribute PARBO Beer and PARBO Chiller for the Surinamese market. Besides this, we export PARBO Beer to a number of selected countries. We also import and distribute Heineken®, Heineken® Premium Light and Vitamalt in Suriname.

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Since 1955 Surinaamse Brouwerij N.V. has been a corporate social responsible company and with our PARBO beer brand we take a central place in Suriname society.

Table OF CONTENTS

WelcomE AT Surinaamse Brouwerij N.V.

Proud to be Surinaamse Brouwerij N.V. part of HEINEKEN

and committed to surprising and exciting our consumers.

WE ARE:Passion for quality ,

fun & enjoyment for life, respect for people and environment.

We Value:

To be the number 1 brander and

brewer that wins consistently

WE want:

3 SUMMARY 2014

4 SUPERVISORY BOARD

5 MANAGEMENT TEAM

6 REPORT OF THE

SUPERVISORY BOARD

8 WORKING FOR

SUSTAINABLE GROWTH

10 SUPPLY CHAIN

12 FINANCE

14 SALES

16 MARKETING

18 HUMAN RESSOURCES

20 CORPORATE SOCIAL

RESPONSABILITY

23 FIVE YEAR CONSOLIDATED

KEY FIGURES

24 FINANCIAL STATEMENTS

28 GENERAL NOTES

32 NOTES TO THE CONSOLIDATED

BALANCE SHEET

38 NOTES TO THE CONSOLIDATED

INCOME STATEMENT

40 COMPANY BALANCE SHEET AS

AT 31 DECEMBER 2014

41 COMPANY INCOME

STATEMENT 2014

42 NOTES TO THE COMPANY

BALANCE SHEET

44 OTHER INFORMATION

47 INDEPENDENT AUDITOR’S REPORT

48 GLOSSARY OF TERMS


summary 2014

7.7%

4.6%

6.5%

12.6%

17.1%

SRD194.9MOur beers

4,0%

SRD 66.7M

Net revenue

Net revenue growth

Total volume growth

Heineken® volume growth

Growth result operating activities

Growth net pro�t

PARBO volume growth

Result operating activities

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3. Hemmo Parson, MemberSince 2003 legal counsel at the headquarters of HEINEKEN in Amsterdam with overall legal responsibility for the HEINEKEN America operations. Also member of the management team HEINEKEN America. Board member of Carib Development Company Ltd. (Trinidad). Worked prior to his career at HEINEKEN as a lawyer at Allen and Overy LLP & Loeff Claeys Verbeke in Amsterdam.

2. Martin Loor, Vice PresidentSince 1998 employed at the Surinaamsche Bank N.V., currently as Chief Financial Officer and Vice President. Held management positions for the Volkskredietbank in Suriname and Société des Bois Tropicaux in French Guyana, Prior to his career with Surinaamsche Bank N.V.

4. Hans van Mameren, MEMBERSince 1977 working for HEINEKEN. Held various technical management posi-tions within Supply Chain for HEINEKEN in Africa and the Netherlands. For 10 years, up to 2012 Managing Director of Bralima DRC, a subsidiary of HEINEKEN.

3.

Supervisory Board1. Lucien Naarden, PresidentSince1981 operating in different profit and non-profit organizations in the Netherlands, the Netherlands Antilles, Suriname and the Caribbean as a labour- and organizational psychologist. Owner and Managing Director of Naarden Advice and Management Consultancy B.V., Suriname Yellow Pages N.V. and Master Licensee of Leadership Management International Inc.

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MANAGEMENT TEAM1. René Kruijt, General ManagerGeneral Manager of Surinaamse Brouwerij N.V. Since November 2011. Entered into

employment in 1985 with HEINEKEN and performed sales functions with HEINEKEN

Nederland, then subsequently commercial functions with HEINEKEN Export Group.

Has operated in management functions for the last 15 years in: Slovakia (Sales &

Distribution Director), Rwanda (Commercial Director) and Egypt (Chief Sales Officer).

Has ultimate responsibility as General Manager for all functions; Finance, Human

Resources, Corporate Relations, Supply Chain, Sales, Marketing and IT.

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2. Dennis van den Berg, Brewery ManagerBrewery Manager of Surinaamse Brouwerij N.V. since 2014. Entered into employment

in 2007 with HEINEKEN Supply Chain B.V. and then worked as quality Manager with

Vrumona B.V., a division of HEINEKEN. Held a variety of management positions prior

to his career with HEINEKEN, in businesses within the food and beverages industry.

(Heinz, General Mills, Concorp)

3. Zohrina Ramdjan-Habieb, Finance ManagerFinance Manager of Surinaamse Brouwerij N.V. since 2008. Entered into employ-

ment in 2002 with the Surinaamse Brouwerij N.V., as Internal Financial Controller.

Held a position as an accounting assistant with Ernst & Young Accountants, prior

to her career with Surinaamse Brouwerij N.V..

4. Fayzal Abdoelrazak, Sales ManagerSales Manager of Surinaamse Brouwerij N.V. since 2014. Entered into employment

in 2012 with the Surinaamse Brouwerij N.V. as Global Information Services Manager.

Performed a variety of projects both in the Netherlands and in Suriname as a Business

Developer, prior to his career with HEINEKEN. Held a variety of management positions

in stock exchange quoted companies in the Netherlands. (USG People, KPN, TPG)

5. Rutger van der Stegen, Marketing ManagerMarketing Manager of Surinaamse Brouwerij N.V. since 2014. Entered into employment

in 2007 with HEINEKEN as a Commercial Management Trainee. Held a variety of

marketing positions with Vrumona B.V. and HEINEKEN Nederland. Was Brand manager,

Specialties for HEINEKEN Nederland between 2012 and 2014.

6. Thersa Wijdenbosch, Human Resources ManagerHuman Resources Manager of Surinaamse Brouwerij N.V. since 2013 Entered into

service in 2013 with Surinaamse Brouwerij N.V. after nine years in the position of

Human Resources Manager with RBC Bank Suriname. Previously performed Human

Resources consultancy projects in Suriname for a variety of companies, and held a

management position with the Ministry of Defence in the Netherlands.

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PRE-ADVIESIn accordance with the provisions of article 17, clause 3 of the Statutes, we present for confirmation the annual accounts drawn up by the management team, to the Annual General Meeting of the Shareholders. The annual accounts have been audited by BDO Assurance N.V. and we recommend these annual accounts that were drawn up by the management team, together with the auditor’s report by BDO Assurance N.V., for confirmation.

The consolidated net profit during the financial year 2014 was SRD 42,538,239. In accordance with article 18 clause 2 of the Statutes, an amount of SRD 3.00 per preference share of SRD 50 nominal value is payable from this to the preferred shareholders and an amount of SRD 0.25 per ordinary share of SRD 5 nominal value is awarded to the ordinary shareholders. These amounts are 6% and 5%, respectively, of the issued and fully paid up capital per share. This represents a statutory call for the payment to the preferred and ordinary shareholders of SRD 132 and SRD 23,715, respectively, after which an amount of SRD 42,514,392 is at the disposal of the Annual General Meeting of Shareholders.

The proposal of the management team is to make a payment in cash of a dividend of SRD 445.75 per ordinary share of SRD 5 and SRD 4,457 per preference share of SRD 50. This brings the total dividend, including the statutory element, per ordinary share of SRD 5 to SRD 446 and per preferred share of SRD 50 to SRD 4,460.

With our approval the interim dividend of SRD 166 per share of SRD 5 and SRD 1,660 per preferred share of SRD 50 was announced in December 2014. Taking this into account, approval of our proposal would fix the final dividend at SRD 280 per ordinary share of SRD 5 and SRD 2,800 per preference share of SRD 50. These amounts include the previously stated statutory dividend and will be paid subject to withholding of the dividend tax payable.The confirmation of the annual accounts serves to discharge the management team for their direction and management, and the Board for its supervision maintained.

The confirmation of the annual accounts serves to discharge the management team for their direction and management, and the Board for its supervision maintained.

SUPERVISORY BOARDThe following changes within the Supervisory Board have taken place during the year under review:• On 2 July 2014, Mr Eddie Jharap resigned his

membership of the Supervisory Board following 17.5 years of service, due to his reaching the statutory maximum age of 70, and he assigned his responsibilities as President of the Supervisory Board to Mr Lucien Naarden. The members of the Board are very grateful to Mr Jharap for his many years of dedication and passion in leading the Board and advising the management team of Surinaamse Brouwerij N.V.

• Mr L. Naarden was appointed as President of the Board on 2 July 2014

• Mr M. Loor was appointed as Vice President of the Board on 2 July 2014

• Mr E. Ubalijoro resigned from the Board on 2 July 2014 • Mr J. van Mameren was appointed as a member of

the Board on 2 July 2014

MEETINGSThe Supervisory Board met on 16 April, 2 July and 5 December 2014. A variety of subjects were discussed in the meetings, including strategy, the company’s results, the financial position, risk management and control of the business. Attention is also focused on the changing market circumstances, and how they should be responded to. In addition to the meetings of the Board, the members have consulted with the management team in order to prepare for meetings of the Board, to advise the management team, and to supervise the progress of the implementation of the agreed policy.

REPORT OF THE SUPERVISORY BOARD


SUSTAINABILITYThe Supervisory Board is particularly satisfied with the sustainability policy that is being pursued. Surinaamse Brouwerij N.V. has been active for 59 years in the Surinamese market, as a socially responsible business. The report on sustainability clearly shows how Surinaamse Brouwerij N.V. focuses its sustainability activities on the Environment, Employees, and Society, and in this way plays a leading role in entering into a dialogue with relevant stakeholders in order to work together for a better future for Suriname.

A WORD OF THANKSWe would like to express our gratitude for the way in which the management team and personnel have actively responded to the changing market circumstances and have yet again worked hard to achieve a good result together.

Members Mr L. Naarden (President) Mr M. Loor (Vice President) Mr H. M. Parson Mr J. van Mameren

Paramaribo, April 30, 2015

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Surinaamse Brouwerij N.V. has been a socially responsible business since 1955 and with its PARBO beer brand it is at the heart of the community. In 2014, we worked hard with the management team and all the personnel to achieve sustainable growth by actively responding to the changing market circumstances.

During the year, we were busy every day, considering how we can convert the challenges with which we are confronted, such as the changed economic situation and the changing market, into opportunities; opportunities that we can exploit in order to contribute to sustainable growth in business and a sustainable community. This is what Surinaamse Brouwerij N.V. has always stood for, for 59 years; Working for Sustainable Growth and Brewing for a Sustainable future in Suriname. We focus our sustainability activities on the environment in Suriname, our employees, and Suriname society.

In October, we were proud to present our first sustainability report - also the first such report in Suriname. This report clearly shows that working for a sustainable society is very important to us, and that we wish to work together with the stakeholders in achieving our aims, and a sustainable future for Suriname. This joint effort found expression in the co-operative venture which was launched in November with the Suriname Taxi Centrale, with which we stimulate consumers to avoid joining in the traffic after consuming alcohol during an evening out. We also cooperate with Conservation International, whereby as a Friend of Green Suriname we contribute to maintaining Suriname as the greenest country in the world. All of these community activities have afforded us a lot of media attention and brought us into closer contact with important stakeholders.

The management team and the entire personnel have successfully anticipated the changing market circumstances. Many initiatives have been developed in order to present our strong brands to the consumer and

to support our partners in the trade in selling our brands. By purchasing at keener prices, constantly controlling and optimising our processes carefully, we have been able to achieve further efficiency improvements, enabling us to keep our prices unchanged. The volume and turnover growth realised are a sign that the Surinamese consumers continue to regard our PARBO brands and Heineken® as their favourites.

LOOKING TO THE FUTUREThe economic situation will not significantly improve in 2015. Oil and gold prices will remain under pressure and currency instability may cause disquiet on the market. These factors are beyond our influence. We can anticipate these by continuing to invest and innovate. Innovation has been at the heart of the business since 1955 and this is how we continue to stimulate and surprise consumers. In 2015, the year in which we will celebrate the 60th anniversary of the existence of Surinaamse Brouwerij N.V., we will live up to that passion. Continued investment forms the basis of our sustainable growth. A significant investment budget is yet again planned for 2015 in order to contribute to that growth, but also in order to achieve another step forward in efficiency. I have full confidence that, with the passion and the effort of the entire team, we will make 2015 a successful year.

M.M. Kruijt,

General Manager, Paramaribo, April 30, 2015

WORKING FOR SUSTAINABLE GROWTH


In our brewing process we use malting barley. This is a barley that is grown specifically for the brewing of beer.

Malting barley contains a lot of starch and low protein. In a malt house the barley malt is converted into malt, in order to make it

suitable for the brewing process.

MALT

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SUPPLY CHAIN

price during HEINEKEN Road Safety Day We checked95% of our company car and truck fleet and provided all the cars and truck with a safe driving checklist2nd

Productivity improvementhl/FTE

2013

2012

2011

2010

2014 5257

5020

5234

4802

4575

of our distribution drivers succeeded their Defensive Driving Training successfully

100%

HIGH PROCUREMENT standards forSURINAMESE WATER and Surinamese Ricemakes our beer from PERFECT QUALITY

664Afteraccident free days we unfortunately

had 2 accidents in 2014

Safe Driving Checklist:

Well rested

Free from alcohol and drugs

No moving objects inside the car

Headset in my ear

Mirrors set

Using seatbelt

Fellow passenger checked

36 HOURSSupply Chain employees followed

of training per person


“2014 was a major challenge for the Supply Chain. The large differences in monthly sales, the number of improvement projects, and the annual volume peak in the month of December have caused the whole Supply Chain to show maximum flexibility in order to be able to supply the products on time to our customers. This was not without incident, but we can look back with some pride and satisfaction and the insights we have gained will enable us to take a further step in optimising our Supply Chain.” Dennis van den Berg, Brewery Manager

PRIORITIESThe priority areas of the Supply Chain are quality, productivity, management of costs, and sustainability. By paying attention to the personal development of our employees, and by continuous improvement via our Total Productive Management Programme we fulfil our priorities.

SAFETYNot only within the Supply Chain but within the whole organization safety has the highest priority. Our aim is for all our employees and contractors to go home in good health after a day working at the brewery. For this reason, it was very disappointing when after a period of 664 accident free days this year two accidents had to be reported. Safety is a priority that therefore has our permanent and constant attention, it should never be taken for granted.

QUALITY AND PRODUCTIVITYKnowing that our customers expect our products to always be of the highest quality, we regard it as a challenge to brew and to package every day with the same level of passion. This year, strides have been made once more in the area of the quality of our products and processes.

It is a recurring challenge for the Supply Chain to keep on top of all the increases in cost, such as personnel and raw materials, by continuously producing more efficiently. For this reason, it is good to see that the positive trend in productivity has continued again this year. This is a great result and enables us to keep costs under control .

DEVELOPMENT OF PEOPLE AND ORGANISATIONIt is essential for our employees to continue to develop and to provide insight into possible improvements, and into the initiatives which are necessary in order to achieve good results each year.

By means of a variety of courses, such as First Line Management for leaders, Defensive Driving and Forklift for drivers, and also the Change Management Programme for the Supply Chain management team, much attention has been paid to individual development and the total organization.

WASTEWATER TREATMENTIn addition to the operational projects, this year has also been the year of building and starting up our wastewater Treatment Plant. The project experienced some delay due to organizational and technical challenges, but in the end the installation started running in December. The project will be finalised in the first quarter of 2015.

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Pro�t and loss account 2014

Net pro�t 194.9 m

Operating costs 128.2 m

Result operating activities 66.7 m

Financial results 0.3 m

Net pro�t 42.5 m

Variable costs as a % of net revenue Fixed operating costs as a % of net revenue

Gross margin as a % of net revenue Result operating activities as a % of net revenue

Net pro�t as a % of net revenue

Since the introduction of our

Supplier Code program

100% of our global and

local suppliers have signed

the Code. The supplier code

outlines key elements

of integrity, environment

and human rights.

Supplier code

NET REVENUE(in millions of SRD)

2013

194.9

2012

181.0

2011

158.2

2010

133.9

105.7

2014

NET PROFIT(in millions of SRD)

2013

2012

2011

2010

2014 42.5

36.3

34.4

31.0

26.0

100%OF OUR LOCAL SUPPLIERS HAVE SIGNED THE

SUPPLIER CODE

34%

36%

64% 22%

29%

FINANCE


“Although 2014 can be characterised for Surinaamse Brouwerij N.V. as a year in which we were confronted with challenges, brought about by internal and external circumstances, we managed to turn these challenges into opportunities. The way in which employees have applied themselves, the flexibility and 100% involvement shown, have meant that the company’s profits have grown substantially. I am very proud of this result.” Zohrina Ramdjan-Habieb, Finance Manager

FINANCE DEPARTMENTThis year, we have continued the Business Partnering Programme for the financial department in accordance with the HEINEKEN model. This involves supporting the various divisions by putting together the financial arguments in support of decision-making centrally. A new aspect in 2014 is the addition of the position of a “Process & Control Improvement Officer” with the aim of improving the organization of our processes in order to minimise the likelihood of error.

In 2013, we started carrying out purchasing centrally, as part of which we have tied in our purchasers to specific divisional budgets. This year, we have placed the emphasis on procurement procedures. This has enabled us to purchase more effectively and efficiently, which has led to savings of SRD 316,800.

SUPPLIER CODEWhen purchasing goods for brewing, packaging and selling our beer we request suppliers to sign our ‘supplier code’. Under this, they undertake, amongst other things, to operate with integrity, to respect human rights and to offer their personnel a safe working environment. In the field of environmental conservation, we ask our suppliers

to be aware of the influence that their business activities have on the environment, and to reduce this influence as much as possible. This year, the purchasing department has paid a lot of attention to the supplier code programme, with the result that 100% of our current suppliers have signed the code.

FINANCIAL RESULTSOur company’s profits have grown 12.6% to SRD 66.7 million. This growth was principally driven by the 7.7% increase in net turnover, which resulted from 4.6% volume growth and an increase in value per hectolitre of 2.9%. This increase in value was partly the result of sales prices introduced in the second half of 2013, and a changed mix of our product portfolio in 2014. Our variable costs grew by 6.5%, mainly driven by our import portfolio, a change in mix (more disposable packaging in comparison with returnable packaging) and a reduction in storage and demurrage costs.

The 3.9% increase in fixed operating costs was mostly the result of increased write-offs, resulting from our investment programme amounting to SRD 18.1 million, maintenance costs, and other operating costs. The net financing costs reduced by 89%, mainly due to the 11% reduction in the euro exchange rate during the year.

As a result, the net profit rose by 17.1% to SRD 42.5 million.

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SALES

AWARENESS CAMPAIGN ON

RADIO AND SOCIAL MEDIA TO

ENCOURAGE CONSUMERS TO

RETURN THEIR EMPTY BOTTLES

TEK A MONI

THE CAMPAIGN HAD AN INCREASED RETURNABLE VOLUME AND LESS ENVIRONMENTAL POLLUTION AS RESULT

MERCHANDISE BLITZThe Top 15 management team went one day into the market

focusing on the creationof attractive beer shelves which resulted in better visibility and availability

Displays build in more than 30 outlets, with positive sales figures as result

Heineken® Christmas six-pack activation

SUCCEEDED THEIR ENGLISH TRAINING SUCCESFULLY

SALES EMPLOYEES

PARBO AND HEINEKEN® ON

AVAILABLE IN

OVER 2000

OUTLETS -2°C


“The sales organization demonstrated its drive and value to Surinaamse Brouwerij N.V. more than ever in 2014. From the first month, it was apparent that 2014 would be a difficult year, with a highly unpredictable nature. External factors such as declining economic growth, dependence on gold prices, and the arrival of new competition, have challenged our performance and the achievement of our targets.” Fayzal Abdoelrazak, Sales Manager

SUCCESSFUL YEARThe sales team underwent a number of changes this year. Under the leadership of a new sales manager a great deal of attention was paid to the personal development of the sales team. Various training sessions were given in order to improve the team’s sales quality and command of English. The sales team completed these training sessions with good results. Incentives have also been adapted, which has contributed to the good results which were finally achieved. Together with other divisions we were able to finish this difficult year successfully, thanks to sales in the fourth quarter.

MERCHANDISINGThe focus of the sales team was on supporting our customers in their sales of our brands. This requires optimal product presentation. In order to provide optimum support to the sales team, colleagues from management worked with them in March, on a merchandising campaign in the market. A large number of supermarkets where supplied with special displays and the shelves where arranged attractively.

TEK A MONI“Your empty Djogo is worth money”; so sounded the campaign with which the consumer was stimulated to return empty Djogo bottles. The campaign involved extensive television and radio advertising and was carried out in cooperation with 20 customers spread throughout the country who were prepared to co-operate with us as a collection point. We can look back at a more than successful campaign, in which the consumer also contributed to our policy of sustainable business.

EXPORTExport of our PARBO Beer brand is currently taking place to Guyana, French Guyana, the Netherlands and Aruba. The export to both Guyana and French Guyana has grown strongly this year. For exporting to the Netherlands, we have switched to HEINEKEN Wholesale as a distributor. This wholesale has 13 regional branches, spread throughout the Netherlands. The change has generated growth, but still not the growth that was expected. In total, export has grown profitably, at a rate of 42% in comparison with 2013. The fact that our export activities have not gone unnoticed is evident from the export prize “Most Improved Export 2014”, which we were awarded in December by the Chamber of Commerce and Manufacture.

RESULTSIn spite of the changed external factors we managed to finish this year with a good performance. The sales results show a 4.0% volume growth for the PARBO brand and 6.5% for Heineken®.

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MARKETING

PARBO BIER NIGHTS PARA, NICKERIE EN PARAMARIBO

PARBO KAWINA FESTIVAL

PARBO PAGARA PRISIRI

PARBO PHAGWA PARTY

ENJOYRESPONSIBLY MESSAGE IN ALL HEINEKEN® COMMERCIALS DURING THE MATCHES

Champions League

1% OF THE POPULATION OF PARAMARIBO

AWARENESS CAMPAIGN“HAD A BEER, LET SOMEONE DRIVE YOU”

LAUNCHED BY MINISTER BELFORTFROM JUSTICE AND POLICE

Everyone is Legendary at Something with the

Heineken® ODYSSEY CAMPAGNE

PARBO BIER FESTIVAL ATJONI

AVOND VIERDAAGSE

PARBO EVENTS

PARBO WORLD CUP HOUSEAll the World Cup matches

broadcasted live in the PARBO World Cup House

Over

visitors20.000


“2014 was a challenging year for our brands, in particular due to the adverse economic climate, but also due to the arrival of the local competitor. It is even more important to get consumers and customers to choose our portfolio again and again. Looking back we are able to say that with growth in both the PARBO and the Heineken® brands we have been more than successful.” Rutger van der Stegen, Marketing Manager

PARBO BIRI DAT N’A BIRIBeing and remaining the national beer was the most important task this year. We have supported this by means of various campaigns, which have contributed bit by bit to the claim “PARBO BIRI, dat n’a BIRI”. With consumers rating the brand at 9.1 out of 10 and 4.0% growth in volume, we have succeeded.

This year events and sponsorship again played an important role in our marketing mix. Supporting national events, such as the Avond Vierdaagse and Pagara Prisiri, but also further extending our own PARBO Beer Nights, have been a central focus this year. The successful PARBO Beer festival in Atjoni on Marrons Day is a prime example of this. Another important cornerstone was the football World Cup; we supported this at our sales outlets with a national promotion. Besides this, we created the PARBO World Cup house, where we broadcasted every match, supported with an array of entertainment. With a total of approximately 20,000 visitors, it was a great success and it is clear that for the Surinamese, the football World Cup and PARBO are inextricably bound to each other.

With spontaneous awareness of 95%, PARBO remains the brand that the Surinamese think of when someone asks for a beer.

HEINEKEN®

Continuing to attract the target group and demonstrating the added value of the brand was the core task for 2014. With 6.5% volume growth and an increase of 8.5 in brand rating we are able to claim success. The first big campaign of the year was the “Odyssey”, which is a talent hunt aimed at further strengthening Heineken® as the premium beer in Suriname. The second campaign was the local support of the UEFA Champions League football sponsorship. The grand finale here was the UEFA Champions League final party, where 2,000 Surinamese came together to watch the final match.

At the end of December, we launched Heineken® Light with an exclusive event followed by advertising on billboards, on 100 taxi roof lights, and support on Facebook. With this new product we were able to attract a new target group with Heineken® and to strengthen the innovative character of the brand.

RESPONSIBLE ALCOHOL CONSUMPTIONThis year, we have applied ourselves to stimulating and further extending responsible alcohol consumption. For Heineken® we did this by the “Dance more, drink slow” campaign and for PARBO by means of the joint operation with Suriname Taxi Centrale (STC). By fitting all 125 rear bumpers with the message “If you’ve had a beer, let someone drive for you” we stimulate consumers to take a taxi after consuming alcohol during an evening out, and not to combine alcohol with driving. The first STC taxi with the message was unveiled by Minister Belfort of Justice and Police. With the cooperation we encourage consumers to not combine alcohol and traffic, and to take a taxi after consumption of alcohol during a night out.

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HUMAN RESSOURCES

GENDER DIVERSITY

70%MALE

30%FEMALE

GROWTH IN MANAGEMENT TEAM

2013

The separation of commerce in salesand marketing led to a change in our management team structure

5 20146

FIRST LINE MANAGEMENT11 PersonsTraining followed by

TRAINING

SAFETYOn the basis of di�erent modules the safety training addresses daily happening situations

BCCThe training addresses our Business Code of Conduct which all our employees have to comply

RCCThe training addresses our rules for commercial communication

83% 92% 100%

WHOSE COMPLETE STUDY WE FINANCED THROUGH OURSCHOLARSHIP PROGRAM

GRADUATEDSTUDENTS

2

Wellness= Fun

1100%

5

Sports day

Participation in pedometer project

Healthy meals been introduced in our company canteen


“2014 has brought many changes with it for the Human Resources Department. We have focused on safety, gender diversity, and stimulating the development of opportunities for career development. Besides this, we have invested in the knowledge and skills of employees by training them in these. The maintenance and improvement of health and driving down absenteeism have been extremely important.” Thersa Wijdenbosch, Human Resources Manager

OUR EMPLOYEESEmployees are the key to success. We strive to create a healthy and safe working environment for our employees. Besides this, we expect our employees to act responsibly and to respect our core values. As at December 31, 2014, the number of Fte‘s reached a total of 156. We look back on a number of successful recruitment drives for crucial positions. We have signed a new collective employment agreement which includes many improvements, including a 5% salary increase.

HEALTHThe focus on maintaining a healthy lifestyle was also brought to people’s attention this year with two Wellness projects. During a successful sports day, a pedometer programme was introduced with the aim of raising awareness of sufficient movement. Various groups have kept each other motivated during the year to keep moving as much as possible together. By recording the total number of steps, it was possible to reward a winning team at the end of the year. Another significant project was the healthy food in our staff canteen, with which we stimulate employees to eat healthily. Our canteen personnel were given advice by a dietician and healthy food is partially subsidised by the brewery.

TRAINING AND DEVELOPMENTWe train and steer our employees to ensure that they continue to control their work better and carry it out safely. This leads to the employees performing their work more efficiently and with more enjoyment. Many of our training programmes are set up in such a way that the teaching of skills is combined with adding to knowledge. In total, our employees have spent an average of 36.5 hours on training this year.

SCHOLARSHIP PROGRAMME A few years ago, we started a scholarship programme. Over the years, we have awarded a number of scholarships, and the first two students have completed their studies. One of these students has received an offer of a year’s contract and is currently working within the Supply Chain division. This year, there are 5 scholarships ongoing, both nationally and internationally.

BUSINESS CLIMATE RESEARCHIn October 2014, we have once more carried out a business climate study in order to measure the involvement and satisfaction of our employees. By asking how employees rated our company, what works well and where they would like to see improvement, we can continue to optimise the situation. The results will be known in 2015 and based on the information received we will put together action plans to increase involvement and satisfaction where necessary.

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CORPORATE SOCIAL RESPONSABILITY

26.0

MINISTER FROM LABOUR, TECHNICAL DEVELOPMENT AND ENVIRONMENT. WITH 1,000 COPIES WE REACHED OUT TO OURMOST IMPORTANT STAKEHOLDERS

1st SUSTAINABILITY REPORTHANDED OVER TO MICHAL MISKIN,

We became a founding partner from the Friends of Green Suriname platform in October. FGS is an initiative from NGO Conservation International

Water reduction is enormously important. We are trying to reduce the amount of water used in our process by working more e�ciently every year. Currently we are using 5.1 hl water per hl beer

Beer is

95% water

Focus on the environment, ouremployees and the society

CSRstrategy

WE ENCOURAGE CONSUMERS THROUGH LOGOS ON OUR PACKAGING MATERIALS AND STRATEGIC PARTNERSHIPS

TO DRINK IN MODERATION. WE INTRODUCED WATER BREAKS AND FREE WATER DURING OUR OWN EVENTS THIS YEAR.


“For 59 years we have been thinking every day about how we can turn the challenges that confront us each day into opportunities for leaving a more sustainable society behind us for future generations. 2014 was a year in which a lot was undertaken and communicated in the area of Corporate Social Responsibility. Based on our own policy with ambitions and targets, we have put ourselves on the map and have set an example for many other manufacturing companies in Suriname.” Flip van Woerkom, Corporate Relations and Sustainable Development Officer

STRATEGY AND TARGETSSustainability is one of the six strategic priorities of HEINEKEN. In order to give form to this throughout the world, there exists the Brewing a Better World Programme. This programme is focused on sustainable procurement, responsible alcohol consumption, the reduction of water usage and reduction of CO2 emissions. Each one of the four focus points referred to is also of great importance to our company. As an organization, we have translated this locally into a sustainability strategy which focuses on the environment in Suriname, our own workforce, and Suriname society. We have expressed our ambitions for each of our focus points, and linked them to concrete targets.

RESULTsIn comparison with 2013, we have achieved a reduction in energy use and CO2 use per litre of beer in the brewery, thanks to bringing a new boiler into use.

Water usage has unfortunately increased in comparison with 2013. This is largely a result of technical problems in the packaging division which eventually led to adaptation of the pasteuriser. This project cost a great deal of effort

but is expected to yield benefits in 2015. We have invested approximately SRD 270,000 in community projects in Suriname. Part of this went to Kinderhuis Saron, where the Management Team has carried out community work. We have also donated an amount of SRD 25,000 to SuAid. An amount that was spent in previous years on gifts for associates.

SUSTAINABILITY REPORTOn 30 October 2014, we were the first company in Suriname to publish a sustainability report. This sustainability report was delivered to Mr Michael Miskin, Minister of Employment, Technological Development and Environment. In the report, we publicly state on our sustainability activities, strategy, ambitions and targets. Transparency towards our stakeholders is extremely important and, therefore, we will now issue a sustainability report each year.

STAKEHOLDER DIALOGUESocially responsible business is not just something we stand for, but something that we need our stakeholders for. For this reason, we entered into a dialogue with them this year on the basis of our sustainability report in order to achieve our objectives. We hope to be able to inspire our stakeholders even more in the future, and to learn from them. Ultimately this means working together on a sustainable future for Suriname.

22

Our beer obtains its flavour by adding of hops to it. The quality of our hop influences the taste and aroma of the

beer considerably, and thus our PARBO BEER contains a long and delicious aftertaste.

HOP


FIVE YEAR CONSOLIDATED KEY FIGURES To get a better insight into the actual development of the operating results, below table shows important data from the annual figures expressed in Euros. For the balance sheet, the year-end exchange rate is used and for the other variables, the average exchange rate.

In Euro‘s 2014 2013 2012 2011 2010

Balance sheet total 30,990,396 25,076,128 25,169,285 21,239,181 25,135,247

Net Revenue 43,709,733 40,664,336 36,792,230 30,337,664 27,764,303

Net profit 9,537,722 8,165,734 8,001,473 7,030,932 6,832,204

Cash dividend 9,530,000 8,159,393 7,934,279 7,018,468 6,832,169

Payout Ratio in % of net profit 100% 100% 100% 100% 100%

Cash dividend/ ordinary shares SRD 5 100.46 86.01 83.26 73.99 72.02

Number of issued and paid up ordinary shares 94,860 94,860 94,860 94,860 94,860

Net profit per SRD 5 share 100.55 86.08 84.35 74.12 72.02

Stock Market Value year-end 594.17 384.09 170.93 89.51 76.16

Share price/ earnings ratio 5.9 4.0 2.0 1.2 1.1

Number of personnel 110 101 97 96 92

Euro-exchange rates (SRD/Euro)

Year-end 4.080 4.610 4.420 4.330 3.770

Average 4.460 4.450 4.300 4.413 3.808

USD-exchange rates (SRD/USD)

Year-end 3.350 3.350 3.350 3.350 2.800

Average 3.350 3.350 3.350 3.350 2.800

24

FINANCIAL STATEMENTS

(before profit appropriation)

Notes 2014 2013

SRD SRD SRD SRD

ASSETS

Noncurrent assets

Intangible fixed assets 1 80,508 130,520

Tangible fixed assets 2 90,647,292 84,834,880

90,727,800 84,965,400

Current assets

Inventories 3 9,437,568 12,348,971

Tradable securities 4 1 1

Receivables 5 5,566,062 6,578,715

Cash and Cash Equivalents 6 20,709,385 11,707,862

35,713,016 30,635,549

Total Assets 126,440,816 115,600,949

LIABILITIES

Shareholders’ Equity 7,20,21 57,001,082 52,602,604

Long-term liabilities 9 298,505 27,024

Provisions 10 12,944,455 13,379,161

Short-term liabilities 11 56,196,774 49,592,160

Total Equity and Liabilities 126,440,816 115,600,949

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2014


Notes 2014 2013

SRD SRD SRD SRD

Gross revenue 12 220,288,277 205,361,334

Less: excise duties/sales taxes 25,342,870 24,405,039

Net revenue 194,945,407 180,956,295

Variable cost of sales 13 70,942,487 66,608,131

Gross margin 124,002,920 114,348,164

Personnel expenses 14 21,360,116 22,435,708

Depreciation 15 11,865,412 10,818,921

Other operating expenses 16 24,045,093 21,846,640

Total operating expenses 57,270,621 55,101,269

Results from operating activities 66,732,299 59,246,895

Financial expenses 17 266,300 2,469,528

Results before tax 66,465,999 56,777,367

Income tax 18 23,927,760 20,439,852

Net profit 42,538,239 36,337,515

Attributable to:

- Shareholders of Amstel Brouwerij BV 32,456,676 27,725,523

- Other shareholders 10,081,563 8,611,992

Earnings per share: 8 446 381

CONSOLIDATED INCOME STATEMENT OVER 2014

26

Issued and paid

capitalRetained earnings Net profit Total

SRD SRD SRD SRD

Balance at 1 January 2014 476,500 15,812,436 36,313,668 52,602,604

Addition to retained earnings from profit

distribution 2013- 28,215 -28,215 -

Dividend distribution 2013 - 13,913,800 -36,285,453 -22,371,653

Paid-out interim dividend 2014 - -15,819,800 - -15,819,800

Actuarial result provision post-retirement

medical benefits- 141,480 - 141,480

Actuarial result provision post-

retirement medical benefits (Parbo

Centrale N.V.)

- -54,538 - -54,538

Excess Long Term Incentive Plan - -11,403 - -11,403

Net profit 2014 - - 42,538,239 42,538,239

Statutory dividend 2014 - - -23,847 -23,847

Balance at 31 December 2014 476,500 14,010,190 42,514,392 57,001,082

CONSOLIDATED STATEMENT OF CHANGES IN 2014

CONSOLIDATED STATEMENT OF CHANGES IN 2013

Issued and paid

capitalRetained earnings Net profit Total

SRD SRD SRD SRD

Balance at 1 January 2013 476,500 16,315,155 34,382,487 51,174,142

Addition to retained earnings from profit

distribution 2012- 288,934 -288,934 -

Dividend distribution 2012 - 12,770,200 -34,093,553 -21,323,353

Paid-out interim dividend 2013 - -13,913,800 - -13,913,800


medical benefits- 366,281 - 366,281


medical benefits (Parbo Centrale NV)- -18,032 - -18,032

Excess Long Term Incentive Plan - 3,698 - 3,698

Net profit 2013 - - 36,337,515 36,337,515

Statutory dividend 2013 - - -23,847 -23,847

Stand per 31 december 2013 476,500 15,812,436 36,313,668 52,602,604


CONSOLIDATED CASH FLOW STATEMENT

2014 2013

SRD SRD SRD SRD

OPERATIONAL ACTIVITIES

Net profit 42,538,239 36,337,515

Adjustment for:

Depreciation intangible and tangible fixed assets11,575,781 10,843,321

Net financing income/ expense 30,275 33,864

Income tax expense 23,927,760 20,439,852

Cash Flow operational activities before changes in working

capital and provisions78,072,055 67,654,552

Changes in inventories 2,911,403 474,974

Changes in receivables 1,012,653 -1,300,666

Changes in short term debts -3,354,132 4,457,718

Total changes in working capital 569,924 3,632,026

Changes in provisions -434,705 -434,210

Changes in provisions and deferred tax -434,705 -434,210

Cash flow business activities 78,207,274 70,852,368

Interest paid and received -30,275 -33,864

Income tax paid -26,430,329 -23,859,572

Cash flow used for interest and income tax -26,460,604 -23,893,436

Cash flow operational activities 51,746,670 46,958,932

INVESTERINGSACTIVITEITEN

Investment tangible fixed assets -17,333,156 -17,399,437

Investment intangible fixed assets -5,025 -160,088

Cash flow investing activities -17,338,181 -17,559,525

Free operating cash flow 34,408,489 29,399,407

FINANCING ACTIVITIES

Dividends paid -24,114,701 -31,767,592

Changes in Long Term Incentive Plan 260,078 -93,943

Changes in Actuarial Results 86,942 348,249

Cash flow financing activities -23,767,681 -31,513,286

Net cash flow 10,640,808 -2,113,879

Balance cash and cash equivalents (incl, bank overdraft)

Janaury 1st-6,737,215 -4,623,336

Balance cash and cash equivalents (incl, bank overdraft)

December 31st3,903,593 -6,737,215

28

GENERAL NOTES Company informationSurinaamse Brouwerij N.V. is incorporated and domiciled in Paramaribo, Suriname. The company is a majority owned subsidiary of Amstel Brouwerij BV, a private limited liability company established and registered in Amsterdam, the Netherlands. Amstel Brouwerij BV owns 76.3% of the shares of Surinaamse Brouwerij N.V. and is a 100% subsidiary of Heineken N.V., a corporation established and registered in Amsterdam, the Netherlands.

Surinaamse Brouwerij N.V. brews, bottles, imports, sells, distributes and exports beer under the brand names PARBO Bier, PARBO Chiller, PARBO Stout, Heineken®, Heineken® Premium Light and Vitamalt.

Summary of significant accounting policiesGeneralThe financial statements have been prepared based on historical cost prices and are stated in Surinamese dollars, which is the company‘s functional currency.

Estimates, judgements and assumptionsThese financial statements are prepared based on management making certain judgments, estimates and assumptions that affect the application of accounting policies and reported amounts of as sets and liabilities, income and expenses. Estima tes in the financial statements are, amongst others, related to the economic useful lives and residual values of the intangible and tangible fixed assets and provisions for post-retirement medical benefits as well as provisions for obsolete inventories and doubtful debtors. The estimates and associated assumptions are based on historical experience, actuarial calculations and on various other factors that under the prevailing circumstances are to be considered reasonable.

These factors form the basis for the assessment about carrying values of assets and liabilities. This information is not readily available from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are continuously evaluated. Changes of estimates are accounted for in the period in which the estimates are adjusted, in case the

changes solely impact the reported year or are accounted for in the period in which the estimates were adjusted and, in future periods, in case the adaptation will impact both current and future years.

The key judgments in applying the accounting policies of Surinaamse Brouwerij N.V. for valuation and determination of results are disclosed in the notes to the consolidated financial statements.

PRINCIPLES OF CONSOLIDATIONThe consolidated financial statements comprise of the financial data of Surinaamse Brouwerij NV and its 100% subsidiaries Parbo Centrale NV and Premium Beverage NV (dormant), of which Surinaamse Brouwerij NV has the decisive control.

Elimination of transactions and balances at consolidationIntercompany balances and transactions and non-realized profits resulting from transactions between the holding company and Parbo Centrale N.V. are eliminated in the consolidated financial statements.

FOREIGN CURRENCY translationThe reporting currency is Suriname Dollars (SRD). Monetary balance sheet items denominated in foreign currency are converted to SRD at the foreign exchange rates as of the balance sheet date of ‘De Surinaamsche Bank N.V.’ These are as follows:

USD 1 = SRD 3.35 (End of 2013: USD 1 = SRD 3.35) EURO 1 = SRD 4.08 (End of 2013: EUR 1 = SRD 4.42)

Exchange rate differences occurring at the settlement or otherwise, conversion of monetary assets and liabilities, are included in the income statement. Transactions in foreign currencies are converted in the income statement to Surinamese Dollars at the exchange rate prevailing at the date of the transaction.


PRINCIPLES For BALANCE SHEET VALUATIONIntangible fixed assetsThe intangible fixed assets, comprise computer soft-ware, which are stated at cost price, less a straight line depreciation based on the estimated economic life of 3 years, or otherwise stated at lower net recoverable amount.

Tangible fixed assetsTangible fixed assets are valuated at the historic cost price or manufacturing price, less straight line accumu lated depreciation based on the estimated economic lives or stated at lower recoverable amount. No depreciation is applied to land and projects in progress. The estimated economic lives are as follows:

Buildings and premises 15-40 years Plant, equipment, furniture and fixtures 10-30 years Other tangible assets 5-15 years

InventoriesThe raw & auxiliary material inventories are valued at cost price or lower realizable value. Semi-finished and finished products are valued at the manufacturing costs i.e. the cost price of the used raw and auxiliary material and the direct production costs. Other stock is valued at the cost price. Where necessary a provision is recorded for obsolete inventory and deducted from the inventory value.

ReceivablesReceivables are valued at the nominal value, net of an allowance for doubtful accounts.

Long-term liabilitiesLong term liabilities relates to the Long Term Incentive Plan for management, a remuneration system maintained by HEINEKEN International which is valued at nominal value.

Provisions (general)The provisions are valued at the nominal value with the exception of the provision for post employee benefits which are determined by the actuary on a discounted basis, pursuant to actuarial methods.

Provision deferred tax liabilitiesThe provision for deferred tax liabilities are calculated over temporary differences between com mercial and fiscal valuations of the balance sheet items tangible fixed assets and inventories, at the nominal tax rate. Movements in the provision resulting from a change of the tax rate are processed, depending on the nature of the principles for the valuation, in the income statement or in retained earnings.

Provision for post retirement medical benefitshe provision for employee benefits is build up based on commitments made by virtue of the free medical health care for current and future pensioners. The pro vision is determined based on actuarial valuations of the projected benefit obligation and discounted at a rate of 1.9% (2012: 1.9%).

Other assets and liabilitiesAll other assets and liabilities in the balance sheet are stated at face value.

30

PRINCIPLES FOR DETERMINATION OF RESULTSNet revenue represents the proceeds from delivery of goods and services to third parties, and is presented after deduction of discounts, sales taxes and excise duties.

The operating costs are determined taking into consi-deration the principles for valuation and determination of results and are allocated to the year to which they relate. Profits are accounted for in the year in which the goods and/or services are delivered. Losses are accounted for in the year in which they are identified.

The depreciation expenses are calculated on a straight line basis, based on the expected economic lives. Depreciation of investments during the year are made proportionally from the date of acquisition or econo mic use in case of work in progress transfers.

Income tax is computed on the basis of the pre-tax results as accounted for in the income statement, taking into account tax allowances and wholly or partially non-deductible expenses.

CONSOLIDATED CASH FLOWThe consolidated cash flow statement is prepared using the indirect method, whereby a distinction is made between cash flows from operating, investing and financing activities. The net cash flow from operating activities is adjusted for income items in the profit and loss account and changes in balance sheet items which did not actually constitute a cash flow during the year.

In the cash flow statement are included cash items with a maturity of less than one month, including cash and bank loans (overdrafts) repayable on demand.


Parbo beer contains 95% water. We set high standards to the Suriname water that we use for our beer. The water is purified,

boiled and is being checked. Our brewers use Surinamese mineral water.

WATER

32

NOTES TO THE CONSOLIDATED balance sheet

2014 2013

SRD SRD

Balance as of 1 January 130,520 1,752

Investments 5,026 160,088

Depreciation -55,038 -31,320

Book value as of 31 December 80,508 130,520

2014 2013

SRD SRD

Land 2,348,762 2,348,762

Buildings 7,795,261 6,866,705

Plant, equipment, furniture & fixtures 47,944,629 48,632,352

Returnable packaging 8,655,690 9,006,701

Vehicles 3,944,721 4,673,602

Projects in progress 19,958,229 13,306,758

Total 90,647,292 84,834,880

Land Buildings

Plant,

equipment,

furniture &

fixtures

Returnable

Packaging Vehicles

Projects in

progressTotal

SRD SRD SRD SRD SRD SRD SRD

Book value 1

January 20142,348,762 6,866,705 48,632,352 9,006,701 4,673,602 13,306,758 84,834,880

Investments - 1,519,063 6,287,731 2,295,534 929,915 6,651,471 17,683,715

Disposals - - -1,907,583 -3,966,144 -554,597 - -6,428,324

Depreciation

Charge- -590,507 -6,975,454 -2,330,953 -1,623,829 - -11,520,743

Reversed

depreciation

disposals

- - 1,907,583 3,650,552 519,630 - 6,077,765

Book value 31

December 20142,348,762 7,795,261 47,944,629 8,655,690 3,944,721 19,958,229 90,647,292

1. INTANGIBLE FIXED ASSETS

2. TANGIBLE FIXED ASSETS

The movement of the capitalized computer software can be specified as follows:

The tangible fixed assets comprise:

The movements of this item per category is as follows:


2014 2013

SRD SRD

Trade receivables 3,723,212 3,173,157

Receivables from affiliated companies 86,507 -

Other receivables and pre payments 1,756,343 3,405,558

Total 5,566,062 6,578,715

5. RECEIVABLES The compilation of the item ‘receivables’ is as follows:

Depreciation is based on the estimated economic lives of the relevant assets. Land is not depreciated.

The fair value of the tangible fixed assets does not deviate significantly from the book value as of 31 December 2014.

2014 2013

SRD SRD

Raw and auxiliary materials 641,663 969,909

Semi-finished product 783,912 838,292

Finished product 2,349,935 3,070,977

POS materials 680,993 884,976

Packaging and technical materials and other 4,981,065 6,584,817

Total 9,437,568 12,348,971

3. INVENTORIES The item ‘inventories’ is compiled as follows:

4. TRADABLE SECURITIES

The item ‘tradable securities’ regards to one share of N.V. Hotelmaatschappij Torarica, valued at cost price. The mar-

ket value of the share at balance sheet date amounts to SRD 72.00.

34

2014 2013

SRD SRD

Cash balances 230,283 179,169

Bank balances 20,479,102 11,528,693

Total 20,709,385 11,707,862

7. SHAREHOLDERS’ EQUITY

8. EARNINGS PER SHARE

6. CASH AND CASH EQUIVALENTS

For a specification of the shareholders’ equity, reference is made to the company balance sheet as of 31 December 2014 of Surinaamse Brouwerij N.V. on page 40.

The calculation of the earnings per share for the amount of SRD 446.36 (2013: SRD 381.30) is based on the net earnings of SRD 42,538,239 (2013: SRD 36,337,515) and the total number of issued shares converted to numbers of nominal share of SRD 5 each. In 2014, this number is 95,300, similar as in 2013.

The Long Term Incentive Plan (LTIP) is within the scope of the remuneration scheme as maintained by HEINEKEN International for certain expatriates.

The cash and cash equivalents comprise:

With the exception of an amount of SRD 2,200,000 regarding a fixed deposit at De Surinaamsche Bank N.V. of SRD 150,000 and an amount of SRD 2,050,000 which has been pledged as collateral for guarantees on behalf of the Collector of Import and Excise Duties, the cash and cash equivalents are at free disposal the company.

9. LONG-TERM LIABILITIES


Deferred tax liabilitiesThe provision for deferred tax liabilities is established through the difference between the tax and commercial valuation. This temporary difference relates to the balance sheet items ‘tangible fixed assets’ and inventory valuation. The deviation for tangible fixed assets is due to deviating principles of valuation for tax purposes and also due to deviating economic useful lives resulting from fiscally accelerated depreciation on specific production assets. The ‘iron stock system’ (base stock) is applied for the tax valuation of specific inventory groups.

Vaste activa Voorraden Total

SRD SRD SRD

Balance as of 1 January 2014 4,767,857 584,186 5,352,043

Release due to lower fiscal depreciations -507,080 - -507,080

Increase due to elimination of intercompany profit

Parbo Centrale N.V.- 88,501 88,501

Decrease due to decrease of valuation difference of inventories - -92,371 -92,371

Balance as of 31 December 2014 4,260,777 580,316 4,841,093

The provision is specified as follows:

De post ‚voorzieningen‘ is als volgt samengesteld:

Provision for post retirement medical benefitsThis provision is based on commitments made by the employer for free medical care for beneficiaries and their rela-tives entitled to these rights. The provision is based on actuarial calculations performed by the external actuary. The calculation method used is the ‘projected unit credit cost method‘. The movements in the financial year regards deductions for benefit withdrawals and premium payments to Assuria Insurances and on the other hand additions to the provision based on the actuarial valuation of the provision at the end of the reporting year. The calcu-lation is based on current actuarial assumptions in Suriname at a discount rate of 1.9% for both years.

Effective fiscal year 2011, according to HEINEKEN policies, a change occurred in the accounting policies and presentation of actuarial gains and losses whereby these actuarial results are recorded as comprehensive income in shareholder’s equity taking into account the tax effects of these gains and losses.

10. PROVISIONS

2014 2013

SRD SRD

Deferred tax liabilities 4,841,093 5,352,043

Provision for employee benefits 8,103,362 8,027,118

Total 12,944,455 13,379,161

36

11. SHORT-TERM LIABILITIES The item ‘short term liabilities’ is compiled of as follows:

The movement of this provision is as follows:

2014 2013

SRD SRD

PBO liabilities as of 1 January 8,027,118 7,937,028

Withdrawals -581,718 -597,496

Current service expenses (including interest) 661,280 610,678

Service cost - past service years 132,529 621,046

Actuarial results -135,847 -544,138

PBO liabilities as of 31 December 8,103,362 8,027,118

Actuarial results Surinaamse Brouwerij N.V. -221,063 -572,314

Actuarial results Parbo Centrale N.V. 85,216 28,176

Balance actuarial results -135,847 -544,138

Taxation (36%) over actuarial the results - (Surinaamse Brouwerij N.V.) -79,583 -206,033

Taxation (36%) over the actuarial results - (Parbo Centrale N.V.) 30,678 10,143

Movement in shareholders’equity (balanced) -86,942 -348,248

2014 2013

SRD SRD

Bank overdraft 16,805,792 18,445,077

Dividend payable 13,005,021 2,212,184

Suppliers 8,648,266 9,415,606

Income tax payable 4,022,403 3,217,715

Affiliated companies 3,618,916 6,656,071

Personnel / employee benefits 3,571,555 3,407,002

Excise duties and sales tax payable 2,740,731 1,632,725

Returnable deposit liabilities 1,748,939 2,008,336

Pensions contributions 548,537 548,537

Reorganizational expenses social 200,327 805,916

Other payables and accrued liabilities 1,286,287 1,242,991

Total 56,196,774 49,592,160


Worldwide there are many yeast strains and each of them has its own character, aroma and taste.

We use our own special PARBO yeast to turn the natural sugars – extracted in the brewing process - into

alcohol and carbon dioxide.

YEAST

38

NOTES TO THE CONSOLIDATED INCOME STATEMENT

2014 2013

SRD SRD

Domestic sales 220,299,243 205,211,876

Export 2,693,193 1,893,758

Total revenue 222,992,436 207,105,634

Discounts -2,704,159 -1,744,300

Gross revenue 220,288,277 205,361,334

2014 2013

SRD SRD

Raw and auxiliary material 7,935,392 7,628,927

Packaging materials 12,822,180 12,166,264

Purchase value import beer 46,831,836 43,667,689

Other variable expenses 3,353,079 3,145,251

Total 70,942,487 66,608,131

12. GROSS REVENUE

13. VARIABLE COST OF SALES

Gross revenue is comprised as follows:

The variable expenses pertain primarily to the use of raw, auxiliary and packaging and other materials in the production process and the purchase value of imported beer and is compiled as follows:

2014 2013

SRD SRD

Wages, holiday allowances and bonuses 12,483,876 11,964,795

Employer’s pension contribution 1,454,157 1,344,332

Medical expenses including addition to provision post-retirement medical benefits 958,799 1,273,050

Other personnel expenses 6,463,284 7,853,531

Total 21,360,116 22,435,708

Number of employed personnel in the reporting year in Fte’s (calculated in

conformity with the definition of HEINEKEN International) at:

Surinaamse Brouwerij N.V. 73.8 70.9

Parbo Centrale N.V. 82.2 78.1

Total 156.0 149.0

14. PERSONNEL EXPENSES The personnel expenses comprise as follows:


2014 2013

SRD SRD

Depreciation tangible fixed assets 11,520,743 10,812,001

Depreciation intangible fixed assets 55,038 31,320

Net result on disposals 289,631 -24,400

Total 11,865,412 10,818,921

15. DEPRECIATIONUnder depreciation the results from the sale of tangible fixed assets is also accounted for. The item comprises as follows:

The item financial (income)/ expenses is comprised as follows:

2014 2013

SRD SRD

Repair and maintenance of tangible assets 3,780,967 3,147,823

Energy and Water 2,981,899 3,168,210

Sales and Marketing expenses 8,724,659 8,585,872

General expenses 8,557,568 6,944,735

Total 24,045,093 21,846,640

16. OTHER OPERATING EXPENSES These comprise of:

2014 2013

SRD SRD

Financial income

Interest income -49,681 -40,718

Sub-total -49,681 -40,718

Financial expenses

Exchange rate results -305,382 1,900,658

Interest expenses 79,956 74,583

Interest post-retirement medical benefits 541,407 535,005

Sub-total 315,981 2,510,246

Balance financial expenses 266,300 2,469,528

17. FINANCIAL INCOME/EXPENSES

2014 2013

SRD SRD

Amount over which the commercial tax burden is calculated 66,465,999 56,777,367

Commercial tax burden (36 %) 23,927,760 20,439,852

18. INCOME TAX The income tax is calculated as follows:

40

Notes 2014 2013

SRD SRD SRD SRD

ASSETS

Fixed assets

Intangible fixed assets 80,508 130,520

Tangible fixed assets 90,647,292 84,834,880

Financial fixed assets 19 24,998,793 19,559,802

115,726,593 104,525,202

Current assets

Inventories 5,714,199 7,424,940

Tradable securities 1 1

Receivables 3,858,495 7,399,281

Cash and cash equivalents 17,458,297 4,888,653

27,030,992 19,712,875

Total assets 142,757,585 124,238,077

LIABILITIES

Shareholders‘ Equity

Issued and paid capital 20 476,500 476,500

Retained earnings 21 14,010,190 15,812,436

Net profit for the year 42,514,392 36,313,668

57,001,082 52,602,604

Long-term liabilities 298,505 27,024

Provisions 11,361,174 11,967,098

Short-term liabilities 74,096,824 59,641,351

Total equity and liabilities 142,757,585 124,238,077

COMPANY BALANCE SHEET AS AT 31 DECEMBER 2014(before profit appropriation)


2014 2013

SRD SRD SRD SRD

Gross revenues 108,001,923 105,898,049

Less: excise duties / sales tax 25,342,870 24,405,039

Net revenue 82,659,053 81,493,010

Variable cost of sales 21,684,309 22,144,579

Gross margin 60,974,744 59,348,431

Personnel expenses 14,515,639 15,845,195

Depreciation 11,865,412 10,818,921

Other operating expenses 6,579,917 4,434,416

Total operating expenses 32,960,968 31,098,532

Results from operating activities 28,013,776 28,249,899

Financial expenses 688,729 2,056,563

Results before income tax 27,325,047 26,193,336

Income tax 9,837,017 9,429,601

Results after taxes 17,488,030 16,763,735

Net result subsidiary 25,050,209 19,573,780

Net result 42,538,239 36,337,515

Less: Statutory dividend 23,847 23,847

Results after statutory dividend 42,514,392 36,313,668

COMPANY INCOME STATEMENT 2014

42

NOTEs TO THE COMPANY BALANCE sheetIn order to provide insight in the valuation and movement of the company financial statement items “financial fixed assets” and “shareholders’ equity”, are separately disclosed in the company financial statements.

GeneralThe principles of valuation and determination of results for the company financial statements are the same as those disclosed in the notes to the consolidated financial statements.

The wholly owned subsidiaries (Parbo Centrale N.V. and Premium Beverage Suriname N.V.) are valued at net asset value. The result from the subsidiaries corresponds to 100%, of the earnings of the relevant company, over the reporting year.

Parbo Centrale N.V.Premium Beverage

Suriname N.V.Total

SRD SRD SRD

Net asset value as at 1 January 2014 19,559,797 5 19,559,802

Profit distribution 2013 -19,556,680 - -19,556,680

3,117 5 3,182

Results 2014 25,050,209 - 25,050,209

Actuarial results on provision post-retirement

medical benefits-54,538 - -54,538

Net assset value as at 31 december 2014 24,998,788 5 24,998,793

19. FINANCIAL FIXED ASSETSThe financial fixed assets are related to the wholly owned Parbo Centrale N.V. and Premium Beverage Suriname N.V. (dormant), of which the movement is as follows:

Premium Beverage Suriname N.V. is a dormant company in which there are currently no activities.


Issued and paid share capital2014 2013

SRD SRD

94,860 ordinary shares of par value SRD 5 474,300 474,300

44 preferential shares of par value SRD 50 2,200 2,200

Total 476,500 476,500

20. SHARE CAPITALShare capital amounts to SRD 2,382,500 and comprises of 476,060 authorised ordinary shares of SRD 5 and 44 preferential shares of SRD 50 each. The following amount of capital have been issued and paid in full, at the end of the reporting year:

2014 2013

SRD SRD

Balance as at January 1st 15,812,436 16,315,155

- addition profit appropriation form previous financial year 28,215 288,934

- actuarial result from provision post-retriment medical benefits

(Surinaamse Brouwerij NV)141,480 366,281

- actuarial result from provision post-retirement medical benefits (Parbo Centrale N.V.) -54,538 -18,032

- Long Term Incentive Plan (LTIP) -11,403 3,698

- dividend payment from last year 13,913,800 12,770,200

- interim-dividend payment current year -15,819,800 -13,913,800

Balance as at December 31st 14,010,190 15,812,436

21. RETAINED EARNINGS The progress of the item ‘retained earnings’ is as follows:

44

OTHER InformationSharesThe preference shares are registered by name; the ordinary shares are bearer shares and if desired by name.

Authority rights meeting of preferential shareholdersThe management team members are appointed by the General Meeting of Shareholders based on a binding nomination of two persons for each vacancy whereby the nomination is established by the meeting of preferential shareholders. This procedure also applies at the appointment of the Supervisory Board members.

Statutory stipulation for profit distribution Of the net profits, 6% dividend is initially distributed over the paid-in preferential share capital to the holders of preferential shares or to a lesser amount due to a lesser net profit and subsequently, 5% to the ordinary shareholders over the paid-in capital on the ordinary shares or to a lesser amount due to a lesser net profit. The remaining amount of the net profit is at the disposal of the General Meeting of Shareholders.

If, according to the adopted profit and loss account in any year a loss was suffered, which is not covered by a reserve, no profit distribution shall take place in the subsequent years, as long as said loss has not been cleared.

Distribution of earnings 2013The General Meeting of Shareholders adopted the financial statements 2013 on July 2, 2014, and has approved below profit distribution of 2013, as follows

Per aandeel In total

SRD SRD

Dividend preferential shares (44 shares at SRD 50 par value) 3,807 167,508

Dividend ordinary shares (94,860 shares at SRD 5 par value) 380.75 36,117,945

Total 36,285,453

Statutory dividend 23,847

Increase to the retained earnings 28,215

Net profit 2013 36,337,515


In total

SRD

Net profit 2014 42,538,239

Less:

Statutory profit distribution preferential shares -132

Statutory profit distribution ordinary shares -23,715

At disposal for the General Meeting of Shareholders 42,514,392

The management team proposed the following distribution of earnings of the net profit 2014, to be available to the shareholders as follows:

In total

SRD

Cash dividend of SRD 4,457 to 44 preferential shares at SRD 50 par value 196,108

Cash dividend of SRD 445.75 to 94,860 equity shares at SRD 5 par value 42,283,845

Addition to retained earnings 34,439

Total 42,514,392

Proposed distribution of earnings 2014The management team proposed the following distribution of earnings after deduction of the statutory provisions, to the General Meeting of Shareholders, for approval.

This proposed distribution of earnings is not yet entered in the financial statements at issue.

46

Rice is a form of unmalted. This is the collective name for cereals which are not malted and can be brewed. Rice makes our beer slightly lighter in taste. In our brew we always use unmalted in

combination with malt because different enzymes arepresent only in malt. Our brewers use Surinamese rice.

RICE


INDEPENDENT AUDITOR’S REPORTTo: The General Meeting of Shareholders of Surinaamse Brouwerij NV

IntroductionWe have audited the accompanying financial statements 2014 of Surinaamse Brouwerij N.V., included on page 24 up to and inclusive of page 45 of the annual report. These financial statements comprise the consolidated and company balance sheet as at December 31, 2014, the consolidated and company income statement, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year ended December 31, 2014 and the notes, comprising a summary of the accounting policies and other explanatory information.

Management’s responsibilityManagement is responsible for the preparation and fair presentation of these financial statements and for the preparation of the management board report, in accordance with generally accepted principles for financial reporting. Furthermore management is responsible for such internal control as it determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the standards on auditing issued by our professional organization. These standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the Auditor‘s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion with respect to the financial statementsIn our opinion, the financial statements give a true and fair view of the financial position of Surinaamse Brouwerij N.V., as at December 31, 2014, and of its result and cash flows for the year then ended in accordance with generally accepted principles for financial reporting.

Paramaribo, April 30, 2015 fo BDO Assurance N.V.

w.s. W.K. Achthoven RA

48

Glossary of TermsTotal Productive ManagementThis is a management methodology that aims to optimize processes in order to avoid losses, so that business performance can be improved.

AccidentAn accident is an instantaneous, unplanned and undesired work-related event which result in death or personal injuries involving loss.

FteFte means full-time equivalent. It is a unit that indicates the workload of an employed person in a way that makes workloads or class loads comparable across various contexts. One Fte is equivalent to a full-time worker. For example: 0.6 Fte - assuming a full-time worker works 40 hours per week – stands for 0.6 * 40 hours = 24 hours.

Wellness Wellness means taking care of a good balance and awareness with regard to health, movement and food of our employees.

Brewing a Better World programmeBrewing a Better World Programme is HEINEKEN’s worldwide sustainability strategy.

Corporate Social ResponsibilityCorporate Social Responsibility is done by executing our “Brewing a Better World Programme”.

PasteuriserThe pasteuriser is the machine in which the process of pasteurisation takes place. Pasteurisation is a method that ensures long shelf life of the treated product by killing or inactivating the harmful microbiological organisms in it, without bringing harm to the product.

StakeholderA Stakeholder is a person, group, or organization that has a direct or an indirect stake in an organization such as to affect or be affected by the organization‘s actions, objectives and policies.

Business Partnering programmeThe Business Partnering Programme is a HEINEKEN programme which aims at rebalancing the focus from result to controlling. Controlling can align all facets of the company, focusing amongst others on collaboration between processes and humans, in such a way that it leads to business improvement.

DemurrageDemurrage refers to the extra charges that the charterer pays to the ship owner for its – longer than agreed - use of the container(s).


Reference InformationA Surinaamse Brouwerij N.V. publicationBrouwerijweg 1, Paramaribo, Suriname Phone +597 402255 Fax +597 404093 www.ParboBier.com

The full Annual Report can be downloaded as a PDF at: www.ParboBier.com

Editor-in-ChiefRené Kruijt

ProductionFlip van Woerkom Lisa Thijm Mireille Bergraaf Margarita van der Zwart

Graphic design and electronic publishing Spang Makandra Studio N.V., Paramaribo, Suriname

PhotographyHelio Phoelie (front and back cover Suriname river, pages 4-5, 10, 12, 16, 18, 31, 46) Shutterstock.com (pages 9, 22, 37) Photo collection Van de Poll (page 1, October 1955, the official opening of the brewery by his Majesty Prince Bernhard, Prins der Nederlanden) Collection Surinaamse Brouwerij N.V. (pages 16,14)

PrintingMultiforms N.V., Paramaribo, Suriname

Translation into EnglishVertaalbureau Translation Kings

PaperCocoon Silk 300 gsm cover Cocoon Silk 170 gsm inside pages

Cocoon Silk is produced by an ISO 140001 accredited manufacturer and is certified as an FSC® recycled product. It is produced with 100 per cent recycled post-consumer fibre in a chlorine-free process PCF (Process Chlorine Free).

More information from Surinaamse Brouwerij N.V. online at: www.ParboBier.com

A PROUD HISTORY - surinaamsebrouwerij.com · by HEINEKEN N.V., was a shareholder right from the start. The Surinamese beer was of excellent quality from the start, as witnessed by

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