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Report of the
Report of the
Contents
Overview
Executive Board
Supervisory Board
Financial
statements
Other
information
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.
In millions
EUR
GBP
2014
USD
EUR
GBP
2013
USD
Financial assets
Trade and other receivables
14
12
44
15
37
Cash and cash equivalents
98
1
93
90
158
Intragroup assets
14
464
4,727
12
461
4,556
Financial liabilities
Interest bearing liabilities
(17)
(878)
(5,464)
(12)
(855)
(6,183)
Non-interest-bearing liabilities
(1)
(1)
(13)
(3)
Trade and other payables
(135)
(9)
(93)
(105)
(1)
(124)
Intragroup liabilities
(728)
1
(706)
(414)
(3)
(282)
Gross balance sheet exposure
(755)
(409)
(1,400)
(427)
(398)
(1,841)
Estimated forecast sales next year
186
1,373
167
1,408
Estimated forecast purchases next year
(1,739)
(2)
(1,562)
(1,559)
(10)
(1,533)
Gross exposure
(2,308)
(411)
(1,589)
(1,819)
(408)
(1,966)
Net notional amount forward exchange contracts
99
396
950
(373)
397
1,533
Net exposure
(2,209)
(15)
(639)
(2,192)
(11)
(433)
Sensitivity analysis
Equity
(35)
(1)
(31)
9
15
Profit or loss
(6)
(1)
(2)
(1)
(6)
Included in the US dollar amounts are intra-HEINEKEN cash flows.
Sensitivity analysis
A 10 per cent strengthening of the British pound and US dollar against the Euro or, in case of the Euro, a strengthening of the Euro against all
other currencies as at 31 December would have affected the value of financial assets and liabilities recorded on the balance sheet and would
have therefore decreased (increased) eguityand profit by the amounts shown above. This analysis assumes that all other variables, in particular
interest rates, remain constant.
A 10 per cent weakening of the British pound and US dollar against the Euro 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 3.8 to 7.3
per cent (2013: from 3.6 to 7.3 per cent).
119
Heineken N.V. Annual Report 2014
