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HEINEKEN N.V. ANNUAL REPORT 2008
Reporting date
Average rate mid-spot rate
In EUR2008200720082007
1.2577 1.3877 1.0499 1.3636
ISD 0.6832 0.7308 0.7185 0.6793
Sensitivity analysis
A10 per cent strengthening of the euro against the British pound and US Dollar as at 31 December would
have increased (decreased) 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 2007.
Equity Profit or loss
In millions of EUR 2008 2007 2008 2007
(2) (2)
USD 54 41 6
A10 per cent weakening of the euro against the British Pound and US Dollar as at 31 December would have
had the equal but opposite effect on the basis that all other variables remain constant.
Interest rate risk
in 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.
Heineken 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 more
weighted towards 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 from
2.9 to 7.3 per cent (2007: from 5.0 to 5.5 per cent).
Interest rate risk - Profile
At the reporting date the interest rate profile of Heineken's interest-bearing financial instruments was as follows:
i millions of EUR 2008
rixed rate instruments
nancial assets 121
Unancial liabilities (3,192) (1,597)
iterest rate swaps floating to fixed (4,656) 40
(7,727) (1,502)
Variable rate instruments
inancial assets 817
inancial liabilities (6,452)
iterest rate swaps fixed to floating 4,656
(979) (156)
