2007 Carrying Contractual 6 months More than In millions of EUR amount cash flows or less 6-12 months 1-2 years 2-5 years 5 years Financial liabilities Secured bank loans 28 (30) (5) (5) (9) (9) (2) Unsecured bank loans 394 (407) (183) (63) (35) (120) (6) Unsecured bond issues 1,317 (1,566) (22) (243) (52) (612) (637) Finance lease liabilities 7 (7) (1) (1) (1) (2) (2) Non-interest-bearing liabilities 13 (13) (10) (2) (1) Deposits from third parties 323 (325) (324) (1) Sank overdrafts 251 (251) (251) Trade and other payables, excluding interest and dividend 2,456 (2,428) (2,354) (74) Derivative financial (assets) and liabilities orward exchange contracts used for hedging: Outflow 36 (1,492) (707) (586) (199) Inflow (104) 1,560 738 613 209 4,721 (4,959) (3,109) (360) (97) (745) (648) rhe total carrying amount and contractual cash flows of derivatives are included in trade and other eceivables (note 20) and trade and other payables (note 29) and non-current non-interest bearing liabilities note 24). Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity irices will affect Heineken's income or the value of its holdings of financial instruments. The objective of narket risk management is to manage and control market risk exposures within acceptable parameters, vhilst optimising the return on risk. Heineken uses derivatives in the ordinary course of business, and also incurs financial liabilities, in order to nanage market risks. Generally, Heineken seeks to apply hedge accounting in order to minimise the effects )f foreign currency fluctuations in the income statement. )erivatives that can be used are interest rate swaps, forward rate agreements, caps and floors, forward txchange contracts and options. Transactions are entered into with a limited number of counterparties vith strong credit ratings. Foreign currency and interest rate hedging operations are governed by an internal jolicy and rules approved and monitored by the Executive Board. oreign currency risk leineken is exposed to foreign currency risk on sales, purchases and borrowings that are denominated in a turrency other than the respective functional currencies of Heineken entities. The main currencies that give ise to this risk are the US Dollar and British Pound. n managing foreign currency risk, Heineken aims to reduce the impact of short-term fluctuations on ?arnings. Over the longer term, however, permanent changes in foreign exchange rates would have an mpact on profit. Heineken hedges up to 90 per cent of its mainly intra-Heineken US Dollar cash flows on the basis of rolling :ash flow forecasts in respect of forecasted sales and purchases. Cash flows in other foreign currencies are also hedged on the basis of rolling cash flow forecasts. Heineken mainly uses forward exchange :ontracts to hedge its foreign currency risk. Given the limited availability of efficient and effective hedging nstruments hedging levels are temporarily below policy in a number of Central and Eastern European :ountries. The majority of the forward exchange contracts have maturities of less than one year after he balance sheet date.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2008 | | pagina 127