Report of the Report of the
Contents Overview Executive Board Supervisory Board
Financial
statements
Other information
32. Financial risk management and financial instruments
Advances to customers
Advances to customers relate to an upfront cash discount to customers. The advances are amortised over the term of the contract
as a reduction of revenue.
In monitoring customer credit risk, refer to the paragraph above relating to trade and other receivables.
Investments
HEINEKEN limits its exposure to credit risk by only investing available cash balances in liguid securities and only with counterparties
that have a credit rating of at least single A or eguivalent for short-term transactions and AA- for long-term transactions. HEINEKEN
actively monitors these credit ratings.
Guarantees
HEINEKEN's policy is to avoid issuing guarantees where possible unless this leads to substantial benefits for HEINEKEN. In cases
where HEINEKEN does provide guarantees, such as to banks for loans (to third parties), HEINEKEN aims to receive security from the
third party.
Eleineken N.V. has issued a joint and several liability statement to the provisions of Section 403, Part 9, Book 2 of the Dutch Civil Code
with respect to legal entities established in the Netherlands.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the
reporting date was:
In millions of EUR
Note
2013
2012
Loans to customers
17
203
368
Indemnification receivable
17
113
136
Other long-term receivables
17
128
148
Held-to-maturity investments
17
4
4
Available-for-sale investments
17
247
327
Non-current derivatives
17
67
116
Investments held for trading
17
11
11
Trade and other receivables, excluding current derivatives
20
2,382
2,500
Current derivatives
20
45
37
Cash and cash equivalents
21
1,290
1,037
4,490
4,684
The maximum exposure to credit risk for trade and other receivables (excluding current derivatives) at the reporting date by geographic
region was:
In millions of EUR
2013
2012
Western Europe
956
978
Central and Eastern Europe
466
502
The Americas
428
225
Africa Middle East
237
448
Asia Pacific
178
214
Head Office/eliminations
117
133
2,382
2,500
Heineken N.V. Annual Report 2013
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