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
2012
2011
Fixed rate instruments
Financial assets
97
95
Financial liabilities
(11,133)
(5,253)
Interest rate swaps floating to fixed
(9)
(1,051)
(11,045)
(6,209)
Variable rate instruments
Financial assets
1,430
431
Financial liabilities
(2,054)
(3,177)
Interest rate swaps fixed to floating
9
1,051
(615)
(1,695)
Fair value sensitivity analysis for fixed rate instruments
During 2012. 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(30) million in 2012 (2011: EUR(30) million), which was offset by
the change in fair value of the hedge accounting instruments, which was EUR18 million (2011: EUR36 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 (aftertax).
Profit or loss
Equity
100 bp increase
100 bp decrease
100 bp increase
100 bp decrease
31 December 2012
Instruments designated at fair value
11
(ID
20
(20)
Interest rate swaps
(6)
6
(9)
9
Fair value sensitivity (net)
5
(5)
11
(11)
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)
As part of the acquisition of Scottish Newcastle in 2008, HEINEKEN took over a portfolio of euro floating-to-fixed interest rate swaps of which currently
EUR400 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 2012
