130 FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED 30. Financial risk management and financial instruments Capital management There were no major changes in Heineken's approach to capital management during the year. The Executive Board's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of business and acquisitions. Capital is herein defined as equity attributable to equity holders of the Company (total equity minus minority interests). Heineken is not subject to externally imposed capital requirements other then the legal reserves explained in note 22. Shares are purchased to meet the requirements under the Long-Term Incentive Plan as further explained in note 27. Fair values The fair values of financial assets and liabilities, together with the carrying amounts shown in the balance sheet, are as follows: Carrying amount Fair value Carrying amount Fair value In millions of EUR 2008 2008 2007 2007 Loans 310 310 161 157 Held-to-maturity investments 10 10 3 3 Available-for-sale investments 221 221 233 233 Advances to customers 346 346 209 209 Investments held for trading 14 14 14 14 Trade and other receivables, excluding derivatives 2,401 2,401 1,680 1,680 Cash and cash equivalents 698 698 560 560 Interest rate swaps used for hedging: Assets 89 89 - Liabilities (425) (425) Forward exchange contracts used for hedging: Assets 102 102 89 89 Liabilities (58) (58) (36) (36) Other derivatives, net 12 12 Bank loans (7,315) (7,401) (422) (422) Unsecured bond loans (1,122) (1,204) (1,317) (1,321) Finance lease liabilities (95) (95) (7) (7) Other interest-bearing liabilities (670) (679) Non-interest-bearing liabilities (409) (409) (13) (13) Deposits from third parties (348) (348) (323) (323) Trade and other payables excluding dividend, interest and derivatives (3,579) (3,579) (2,435) (2,435) Bank overdrafts (94) (94) (251) (251) (9,912) (10,089) (1,855) (1,863) Basis for determining fair values The significant methods and assumptions used in estimating the fair values of financial instruments reflected in the table above are discussed in note 4.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2008 | | pagina 132