Financial statements I Notes to the consolidated financial statements continued 32. Financial risk management and financial instruments :ontinued Interest rate risk - Profile At the reporting date the interest rate profile of HEINEKEN's interest-bearing financial instruments was as follows: In millions of EUR 2011 2010 Fixed rate instruments Financial assets 95 84 Financial liabilities (5,253) (5,275) Interest rate swaps floating to fixed (1,051) (456) (6,209) (5,647) Variable rate instruments Financial assets 431 633 Financial liabilities (3,177) (2,786) Interest rate swaps fixed to floating 1,051 456 (1,695) (1,697) Fair value sensitivity analysis for fixed rate instruments During 2011HEINEKEN 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(30) million in 2011 (2010: EUR(67) million), which was offset by the change in fair value of the hedge accounting instruments, which was EUR39 million (2010: EUR70 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 loss Equity In millions of EUR 100 bp increase 100 bp decrease 100 bp increase 100 bp decrease 31 December 2011 Instruments designated at fair value 29 (29) 29 (29) Interest rate swaps (20) 21 (2) 2 Fair value sensitivity (net) 9 (8) 27 (27) 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) 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 EUR690 million is still outstanding. Although interest rate risk is hedged economically, it is not possible to 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. 132 Heineken N.V. Annual Report 2011

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2011 | | pagina 134