Report of the Report of the
Contents Overview Executive Board Supervisory Board
Financial
statements
Other information
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
2013
2012
Fixed rate instruments
Financial assets
96
97
Financial liabilities
(11,017)
(11,133)
Net interest rate swaps
471
(9)
(10,450)
(11,045)
Variable rate instruments
Financial assets
1,488
1,430
Financial liabilities
(1,153)
(2,054)
Net interest rate swaps
(471)
9
(136)
(615)
Fair value sensitivity analysis for fixed rate instruments
HEINEKEN applies hedge accounting on certain fixed rate financial liabilities. The fair value movements on these liabilities and hedge
accounting instruments are recognised in profit or loss. The change in fair value on these liabilities was EUR58 million negative in
2013 (2012: EUR30 million negative), which was offset by the change in fair value of the hedge accounting instruments, which was
EUR46 million (2012: EUR18 million).
A change of 100 basis points in interest rates at the reporting date would have increased (decreased) eguity and profit or loss by the
amounts shown below (after tax).
Profit or loss
Equity
In millions of EUR
100 bp
increase
100 bp
decrease
100 bp
increase
100 bp
decrease
31 December 2013
Instruments designated at fair value
5
(5)
5
(5)
Interest rate swaps
(4)
4
(3)
3
Fair value sensitivity (net)
1
(1)
2
(2)
31 December 2012
Instruments designated at fair value
11
(11)
20
(20)
Interest rate swaps
(6)
6
(9)
9
Fair value sensitivity (net)
5
(5)
11
(11)
As part of the acguisition of Scottish Newcastle in 2008, HEINEKEN took over a portfolio of Euro floating-to-fixed interest rate
swaps of which currently EUR300 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 overtime.
Heineken N.V. Annual Report 2013
119
