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Report of the Report of the
Contents Overview Executive Board Supervisory Board
Financial
statements
Other information
32. Financial risk management and financial instruments
Exposure to foreign currency risk
HEINEKEN'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.
2013
2012
In millions
EUR
GBP
USD
EUR
GBP
USD
Financial assets
Trade and other receivables
15
37
12
10
Cash and cash equivalents
90
158
72
92
Intragroup assets
12
461
4,556
10
455
4,788
Financial liabilities
Interest bearing borrowings
(12)
(855)
(6,183)
(6)
(858)
(6,285)
Non-interest-bearing liabilities
(13)
(3)
(1)
(61)
Trade and other payables
(105)
(1)
(124)
(74)
(33)
Intragroup liabilities
(414)
(3)
(282)
(298)
(715)
Gross balance sheet exposure
(427)
(398)
(1,841)
(285)
(403)
(2,204)
Estimated forecast sales next year
167
1,408
71
10
1,476
Estimated forecast purchases next year
(1,559)
(10)
(1,533)
(780)
(1)
(1,360)
Gross exposure
(1,819)
(408)
(1,966)
(994)
(394)
(2,088)
Net notional amount forward exchange contracts
(373)
397
1,533
(507)
483
1,216
Net exposure
(2,192)
(11)
(433)
(1,501)
89
(872)
Sensitivity analysis
Equity
9
15
11
7
36
Profit or loss
(1)
(6)
(1)
(3)
Included in the US dollar amounts are intra-HEINEKEN cashflows. Within the net notional amount forward exchange contracts,
the cross-currency interest rate swaps of Eleineken UK form the largest component.
Sensitivity analysis
A 10 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 impacted the value of financial assets and liabilities recorded on the
balance sheet and would have therefore increased (decreased) eguity 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 2012.
A 10 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 egual 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 HEINEKEN's interest rate position is more weighted towards fixed 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
3.6to 7.3 percent (2012:from 1.0to 8.1 percent).
Heineken N.V. Annual Report 2013
118
