123
Fair value sensitivity analysis for fixed rate instruments
During 2010, Heineken opted to apply fair value hedge accounting on certain fixed rate financial liabilities. The fair value movements
on these instruments are recognised in profit or loss. The change in fair value on these instruments was EUR(67) million in 2010
(2009: EUR73 million), which was offset by the change in fair value of the hedge accounting instruments, which was EUR70 million
(2009: EUR(73) million).
A change of 100 basis points in interest rates at the reporting date would have increased (decreased) equity and profit or loss
by the amounts shown below (after tax).
Profit or lossEquity
millions of EUR100 bp increase 100 bp decrease 100 bp increase 100 bp decrease
31 December 2010
Instruments designated at fair value
39
(40)
40
(40)
Interest rate swaps
(25)
27
(4)
5
Fair value sensitivity (net)
14
(13)
36
(35)
31 December 2009
Instruments designated at fair value
45
(48)
45
(48)
nterest rate swaps
(19)
21
49
(47)
air value sensitivity (net)
26
(27)
94
(95)
As part of the acquisition of Scottish Newcastle in 2008, Heineken took over a specific portfolio of euro floating-to-fixed interest
rate swaps of which currently EUR940 million is still outstanding. Although interest rate risk is hedged economically, it is not possible
o apply hedge accounting on this portfolio. A movement in interest rates will therefore lead to a fair value movement in the profit
or loss under the other net financing income/(expenses). Any related non-cash income or expenses in our profit or loss are expected
to reverse over time.
lash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates constantly applied during the reporting period would have increased (decreased)
equity and profit or loss by the amounts shown below (after tax). This analysis assumes that all other variables, in particular foreign
currency rates, remain constant and excludes any possible change in fair value of derivatives at period-end because of a change
n interest rates. The analysis is performed on the same basis for 2009.
Profit or lossEquity
In millions of EUR
100 bp increase
31 December 2010
Variable rate instruments
(16)
16
(16)
16
let interest rate swaps fixed to floating
3
(3)
3
(3)
lash flow sensitivity (net)
(13)
13
(13)
13
31 December 2009
Variable rate instruments
(21)
21
(21)
21
nterest rate swaps fixed to floating
19
(19)
19
(19)
lash flow sensitivity (net)
(2)
2
(2)
2
Heineken N.V. Annual Report 2010