1997 1996 Current liabilities The debts becoming due and payable in at most one year are as follows: Repayment obligations in 1998 on debentures and private contract loans 92,296 122,736 Indebtedness to credit institutions 384,201 651,423 Suppliers 902,656 885,443 Taxes and social security contributions 461,818 366,272 Dividend 106,385 106,076 Short-term deposits 260,901 220,626 Pensions 1,214 2,620 Debts to non-consolidated participations 15,040 2,068 Other creditors 293,215 317,199 Accruals and deferred income 531,936 544,923 3,049,662 3,219,386 On behalf of the government authorities in a number of countries equitable mortgages of NLC 523 million f1996. NLC 233 million) have been given on tangible fixed assets as security for excise duties payable on beer, soft drinks and spirits, as well as for import duties payable. Off-balance sheet obligations in millions of guilders Tenancy and operating leases 105 110 Assets on order, in so far as not included under tangible fixed assets 192 180 Long-term raw materials purchase contracts 145 174 Declarations of liability 433 437 Other off-balance sheet obligations 75 65 Financial instruments in millions of guilders Contract value on December 31: Currency hedging instruments US-dollars 827 415 Currency hedging instruments other currencies 865 270 Interest hedging instruments 673 706 Financial instruments are used in the normal course of business to hedge the effects offluctuations in exchange rates and interest rates on earnings. The most important inflow of foreign currency is denominated in US-dollars and is generated by export activities. The expected net cash inflow in US-dollars totalling some US-dollars 600 million on an annual basis, is hedged well in advance via a combination of forward contracts and options. This policy reduces the exposure of export proceeds and results of short term fluctuations in the US-dollar rate and delays inclusion of long-term fluctuations in the result. As far as possible, temporary cash surpluses are held centrally and invested in bank deposits in Dutch guilders with a maximum term of one year. The risk of reduction of the interest income on these deposits due to a fall in the interest rate is hedged to approximately 35% via use of interest instruments. These interest hedging instruments comprise interest rate swaps, forward rate agreements, caps and floors, and swaptions. Implementation of the currency and interest policy is linked with stringently defined policy and strict rules. Only a limited number of counterparties is used, all with excellent credit ratings. The activities are carefully monitored independently of implementation. HEINEKEN N. V. ANNUAL ACCOUNTS 19 9 7 57

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 1997 | | pagina 71