120 Financial statements Notes to the consolidated financial statements 32. Financial risk management and financial instruments The total carrying amount and contractual cash flows of derivatives are included in trade and other receivables (note 20) and tradi and other payables (note 31) and non-current non-interest bearing liabilities (note 25). 200 Carrying Contractual 6 months or More than Financial liabilities Secured bank loans 275 (304) (13) (16) (89) (153) Unsecured bank loans 3,036 (3,249) (96) (170) (1,375) (1,263) (34 F Unsecured bond issues 2,945 (3,786) (626) (49) (152) (2,032) (92 Finance lease liabilities 108 (114) (10) (9) (15) (49) (31 Other interest-bearing liabilities 1,342 (1,690) (91) (54) (67) (803) (675 Non-interest-bearing liabilities 93 (120) (20) (23) (31) (45) Deposits from third parties 377 (377) (368) 19) Bank overdrafts 156 (156) (156) Trade and other payables, excluding interest, dividends and derivatives 3,444 (3,444) (3,278) (166) Derivative financial (assets) and liabilities Interest rate swaps used for hedge accounting Inflow (17) 1,490 43 36 88 732 Outflow 438 (1,819) (74) (89) (102) (965) (58 Forward exchange contracts used for hedge accounting: Inflow (48) 1,015 615 282 118 Outflow 26 (996) - (268) (120) 12,175 (13,550) (4,682) (535) (1,745) (4,578) (2,OK The total carrying amount and contractual cash flows of derivatives are included in trade and other receivables (note 20), other investments (note 17), trade and other payables (note 31) and non-current non-interest bearing liabilities (note 25). Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, commodity prices and equity prices will affect Heineken's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, whilst optimising the return on risk. Heineken uses derivatives in the ordinary course of business, and also incurs financial liabilities, in order to manage market risks. Generally, Heineken seeks to apply hedge accounting or make use of natural hedges in order to minimise the effects of foreign currency fluctuations in profit or loss. Derivatives that can be used are interest rate swaps, forward rate agreements, caps and floors, commodity swaps, spot and forwar exchange contracts and options. Transactions are entered into with a limited number of counterparties with strong credit ratings. Foreign currency, interest rate and commodity hedging operations are governed by internal policies and rules approved and monitored by the Executive Board. Foreign currency risk Heineken is exposed to foreign currency risk on sales, purchases and borrowings that are denominated in a currency other than the respective functional currencies of Heineken entities. The main currencies that give rise to this risk are the US dollar and British pound. In managing foreign currency risk, Heineken aims to reduce the impact of short-term fluctuations on earnings. Over the longer terrr however, permanent changes in foreign exchange rates would have an impact on profit.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2010 | | pagina 117