Overview
Report of the
Executive Board
Report of the
Supervisory Board
Financial statements
Other information
Exposure to foreign currency risk
H EINEKEN'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.
2012
2011
EUR
GBP
USD
EUR
GBP
USD
Financial Assets
Trade and other receivables
12
-
10
14
1
12
Cash and cash equivalents
72
-
92
52
60
21
Intragroup assets
10
455
4,788
4
455
1,384
Financial Liabilities
Interest bearing borrowings
(6)
(858)
(6,285)
(50)
(1,050)
(3,082)
Non-interest-bearing liabilities
(1)
-
(61)
-
-
(75)
Trade and other payables
(74)
-
(33)
(61)
-
(34)
Intragroup liabilities
(298)
-
(715)
(314)
(502)
Gross balance sheet exposure
(285)
(403)
(2,204)
(355)
(534)
(2,276)
Estimated forecast sales next year
71
10
1,476
119
16
1,041
Estimated forecast purchases next year
(780)
(1)
(1,360)
(442)
-
(723)
Gross exposure
(994)
(394)
(2,088)
(678)
(518)
(1,958)
Net notional amount forward exchange contracts
(507)
483
1,216
(851)
535
1,161
Net exposure
(1,501)
89
(872)
(1,529)
17
(797)
Sensitivity analysis
Equity
11
7
36
15
-
14
-
(1)
(3)
Included in the US dollar amounts are intra-HEINEKEN cash flows. Within the net notional amount forward exchange contracts, the cross-currency
interest rate swaps of HEINEKEN UK form the largest component.
Sensitivity analysis
A10 per cent strengthening of the euro against the British pound and US dollar or, in case of the euro, a strengthening of the euro against all other
currencies as at 31 December would have increased (decreased) equity and profit by the amounts shown above. This analysis assumes that all other
variables, in particular interest rates, remain constant. The analysis is performed on the same basis as for 2011
A10 per cent weakening of the euro against the British pound and US dollar or, in case of the euro, a weakening of the euro against all other currencies
as at 31 December would have had the equal but opposite effect on the basis that all other variables remain constant.
Interest rate risk
In managing interest rate risk, HEINEKEN aims to reduce the impact of short-term fluctuations on earnings. Over the longer term, however, permanent
changes in interest rates would have an impact on profit.
HEINEKEN opts for a mix of fixed and variable interest rates in its financing operations, combined with the use of interest rate instruments. Currently
H EINEKEN's interest rate position is more weighted towards fixed rather than floating. Interest rate instruments that can be used are interest rate swaps,
forward rate agreements, caps and floors.
Swap maturity follows the maturity of the related loans and borrowings which have swap rates for the fixed leg ranging from 1.0 to 8.1 per cent
(2011from 1.0 to 8.1 per cent).
Heineken N.V. Annual Report 2012
131
