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.