Exposure to foreign currency risk
Heineken's transactional exposure to the British pound, US dollar and euro was as follows based on notional
amounts. The euro column relates to transactional exposure to the euro within subsidiaries which are reporting
in other currencies.
2009
2009
2009
2008
2008
In millions
EUR
GBP
USD
GBP
USD
Loans and held-to-maturity
investments
-
-
-
480
257
Trade and other receivables
25
-
7
12
142
Cash and cash equivalents
46
-
2
24
19
Secured bank loans
-
-
(1)
-
-
Unsecured bank loans
(100)
(57)
(1,492)
(537)
(1,720)
Unsecured bond issues
-
(400)
-
-
2
Non-interest-bearing liabilities
(10)
-
(1)
(2)
Bank overdrafts
(63)
-
(2)
(13)
Trade and other payables
(88)
-
(26)
(4)
(58)
Gross balance sheet exposure
(190)
(457)
(1,513)
(25)
(1,373)
Estimated forecast sales
next year
140
1
885
2
1,000
Estimated forecast purchases next
/ear
(402)
(1)
(88)
1
(295)
Gross exposure
(452)
(457)
(716)
(22)
(668)
Cash flow hedge accounting
orward exchange contracts
61
427
(375)
(1)
(545)
Gther hedge accounting forward
exchange contracts
(945)
-
1,061
57
799
let exposure
(1,336)
(30)
(30)
34
(414)
Including in the US dollar amounts are intra-Heineken cash flows. Within the other hedge accounting forward
exchange contracts, the cross-currency interest rate swaps of Heineken UK forms the largest component. As a
•esult of the 2008 Scottish Newcastle acquisition, Heineken had assumed debt swapped back into euro which
is maintained as a net investment hedge.
The following significant exchange rates applied during the year:
Average rate Year-end rate
n EUR2009 2008 2009 2008
1.1224 1.2577 1.1260 1.0499
JSD 0.7170 0.6832 0.6942 0.7185
Sensitivity analysis
10 per cent strengthening of the euro against the British pound and US dollar or in case of the euro a
trenghtening of the euro against all other currencies 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
nterest rates, remain constant. The analysis is performed on the same basis for 2008.
Equity
Profit or loss
n millions of EUR
31 December
2009
2008
2009
2008
EUR
1
(3)
GBP
2
(2)
2
(2)
JSD
39
54
-
6
10 per cent weakening of the euro against the British pound and US dollar or in case of the euro a weakening
)f the euro against all other currencies as at 31 December would have had the equal but opposite effect on the
jasis that all other variables remain constant.
Annual Report 2009 - Heineken N.V.
