129
HEINEKEN N.V. ANNUAL REPORT 2008
Commodity risk is the risk that changes in commodity price will affect Heineken's income. The objective
of commodity risk management is to manage and control commodity risk exposures within acceptable
parameters, whilst optimising the return on risk. So far, commodity trading by the Company is limited to the
sale of surplus C02 emission rights. Heineken does not enter into commodity contracts other than to meet
Heineken's expected usage and sale requirements.
Cash flow hedges
The following table indicates the periods in which the cash flows associated with derivatives that are cash
flow hedges are expected to occur.
2008
In millions of EUR
Carrying
amount
Expected
cash
flows
6
months
or less
6-12
months
1-2
years
2-5
years
More
than 5
years
Interest rate swaps:
\ssets
(89)
856
80
64
124
139
449
Liabilities
206
(1,097)
(100)
(97)
(212)
(214)
(474)
Forward exchange contracts:
^sets
Liabilities
(102)
58
2,068
(2,028)
1,095
(1,056)
670
(677)
303
(295)
73
(201)
19
(40)
(80)
(75)
(25)
2007
la millions of EUR
Carrying
amount
Expected
cash
flows
6
months
or less
6-12
months
1-2
years
2-5
years
More
than 5
years
iterest rate swaps:
\ssets
iabilities
orward exchange contracts:
\ssets
iabilities
(104)
36
1,560
(1,492)
738
(707)
613
(586)
209
(199)
(68)
68
31
27
10
-
-
he periods in which the cash flows associated with forward exchange contracts that are cash flow hedges are
xpected to impact the income statement is on average two months earlier than the occurrence of the cash
lows as in the table above.
air value hedges/net investment hedges
"he following table indicates the periods in which the cash flows associated with derivatives that are fair value
ledges or net investment hedges are expected to occur.
2008
l millions of EUR
Carrying
amount
Expected
cash
flows
6
months
or less
6-12
months
1-2
years
2-5
years
More
than 5
years
nterest rate swaps:
vssets
-
1,106
62
61
47
701
235
iabilities
167
(1,316)
(76)
(76)
(45)
(761)
(358)
167
(210)
(14)
(15)
2
(60)
(123)
2007
i millions of EUR
Carrying
amount
Expected
cash
flows
6
months
or less
6-12
months
1-2
years
2-5
years
More
than 5
years
iterest rate swaps:
issets
labilities
