119 Exposure to foreign currency risk Heineken's exposure for the USD was as follows based on notional amounts: 2007 In millions USD USD oans and held-to-maturity investments 74 Trade and other receivables 198 Cash and cash equivalents 5 Secured bank loans - (35) I ank overdrafts - (3) de and other payables (8)(16) Gross balance sheet exposure 269 233 timated forecast sales next year 1,051 1,147 Estimated forecast purchases next year(163) (201) Gross exposure 1,157 1,179 Cash flow hedging forward exchange contracts (890) (978) Other hedging forward exchange contracts(161) (178) Net exposure10623 Included in the USD amounts are intra-Heineken cash flows. The loans represent intra-Heineken financing. The following significant exchange rates applied during the year: Reporting date Average rate mid-spot rate Ir EUR 2007 2006 2007 2006 0.7308 0.7973 0.6793 0.7584 Sensitivity analysis A 10 per cent strengthening of the euro against the US Dollar as at 31 December would have increased ecreased) equity and profit by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. The analysis is performed on the same basis for 2006. Equity Profit or loss It millions Of EUR 2007 2006 2007 200E LSD 41 50 (6) (3) A 10 per cent weakening of the euro against the US Dollar as at 31 December would have had the equal but opposite effect on the basis that all other variables remain constant. I iterest rate risk managing interest rate risk, Heineken aims to reduce the impact of short-term fluctuations on earnings. Over the longer term, however, permanent changes in interest rates would have an impact on profit. L eineken opts for a well-balanced mix of fixed and variable interest rates in its financing operations, combined with the use of interest rate instruments. Currently, Heineken's interest rate position is predominantly fixed rather than floating. Interest rate instruments that can be used are interest rate swaps, forward rate agreements, caps and floors. Swap maturity follows the maturity of the related loans and borrowings and have swap rates ranging om 5.0 to 5.5 per cent (2006: from 3.4 to 5.5 per cent). Heineken N.V. Annual Report 2007

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