-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Report of the Report of the
Contents Overview Executive Board Supervisory Board
Financial
statements
Other information
32. Financial risk management and financial instruments
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) eguity
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 2012.
Profit or loss
Equity
In millions of EUR
100 bp
increase
100 bp
decrease
100 bp
increase
100 bp
decrease
31 December 2013
Variable rate instruments
3
(3)
3
(3)
Net interest rate swaps
(A)
A
(A)
A
Cash flow sensitivity (net)
(1)
1
(1)
1
31 December 2012
Variable rate instruments
(A)
A
(A)
A
Net interest rate swaps
Cash flow sensitivity (net)
(A)
A
(A)
A
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 HEINEKEN 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. HEINEKEN does not enter into commodity contracts other than
to meet HEINEKEN's expected usage and sale reguirements. As at 31 December 2013, the market value of commodity swaps was
EUR26 million negative (2012: EUR22 million negative).
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.
2013
In millions of EUR
Carrying
amount
Expected
cash flows
Less than
1 year
1 -2 years
2-5 years
More than
5 years
Interest rate swaps:
Assets
63
1,607
79
561
967
Liabilities
(A5)
(1.5A3)
(79)
(509)
(955)
Forward exchange contracts:
Assets
39
6A3
530
113
Liabilities
(A)
(607)
(A 9 6)
(111)
Commodity derivatives:
Assets
Liabilities
(26)
(26)
(2A)
(2)
27
7A
10
52
12
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 2013
120
