Overview
Report of the
Executive Board
Report of the
Supervisory Board
Financial statements
Other information
Cash 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 in interest rates. The analysis is performed on the same basis as
for 2011.
Profit or loss
Equity
In millions of EUR
100 bp increase
100 bp decrease
100 bp increase
100 bp decrease
31 December 2012
Variable rate instruments
(a)
4
(a)
a
Net interest rate swaps fixed to floating
-
-
-
-
Cash flow sensitivity (net)
(A)
4
(A)
A
31 December 2011
Variable rate instruments
(20)
20
(20)
20
Net interest rate swaps fixed to floating
8
(8)
8
(8)
Cash flow sensitivity (net)(12)12(12)12
Commodity price risk
Commodity price risk is the risk that changes in commodity prices will affect HEINEKEN's income. The objective of commodity price risk management
is to manage and control commodity risk exposures within acceptable parameters, whilst optimising the return on risk. The main commodity exposure
relates to the purchase of cans, glass bottles, malt and utilities. Commodity price risk is in principle addressed by negotiating fixed prices in supplier
contracts with various contract durations. So far, commodity hedging with financial counterparties by the Company is limited to the incidental sale of
surplus C02 emission rights, aluminium hedging and, to a limited extent, gas hedging, which are done in accordance with risk policies. EIEINEKEN does
not enter into commodity contracts other than to meet HEINEKEN's expected usage and sale requirements. As at 31 December 2012, the market value
of commodity swaps was EUR(22) million (2011: EUR(25) million).
Cash flow hedges
The following table indicates the periods in which the cash flows associated with derivatives that are cash flow hedges, are expected to occur.
2012
Carrying
amount
Expected
cash flows
Less than
1 year
1 -2 years
2-5 years
More than
5 years
Interest rate swaps:
Assets
96
1,752
85
82
696
889
Liabilities
(26)
(1,632)
(89)
(79)
(617)
(847)
Forward exchange contracts:
Assets
28
1,296
1,150
1A6
-
-
Liabilities
(16)
(1,288)
(1,1 A5)
(1A3)
-
-
Commodity derivatives:
Assets
1
1
1
-
-
-
Liabilities
(23)
(23)
(22)
(1)
-
-
60
106
(20)
5
79
42
The periods in which the cash flows associated with forward exchange contracts that are cash flow hedges are expected to impact profit or loss is on
average two months earlier than the occurrence of the cash flows as in the above table.
Heineken N.V. Annual Report 2012
133
