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