Notes to the consolidated financial statements continued
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Report of the
Report of the
Financial
Other
Contents
Overview
Executive Board
Supervisory Board
statements
information
32. Financial risk management and financial instruments
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
2014
2013
Fixed rate instruments
Financial assets
99
96
Financial liabilities
(10,225)
(11,017)
Net interest rate swaps
56
471
(10,070)
(10,450)
Variable rate instruments
Financial assets
917
1,488
Financial liabilities
(1,532)
(1,153)
Net interest rate swaps
(56)
(471)
(671)
(136)
Fair value sensitivity analysis for fixed rate instruments
HEIN EKEN applies fair value and cash flow hedge accounting on certain fixed rate financial liabilities and designates derivatives (interest rate
swaps) as hedging instruments. The fixed rate financial liabilities that were accounted for at fair value through profit and loss and the designated
interest rate swaps were repaid/settled in 2014. The termination of these fair value hedges did not have a material impact on profit and loss.
A change of 100 basis points in interest rates would have increased (decreased) eguity by EUR nil million (2013: EUR 5 million).
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 2013.
Profit or loss
Equity
100 bp
100 bp
100 bp
100 bp
In millions of EUR
increase
decrease
increase
decrease
31 December 2014
Variable rate instruments
(5)
5
(5)
5
Net interest rate swaps
Cash flow sensitivity (net)
(5)
5
(5)
5
31 December 2013
Variable rate instruments
3
(3)
3
(3)
Net interest rate swaps
(4)
4
(4)
4
Cash flow sensitivity (net)
(1)
1
(1)
1
120
Heineken N.V. Annual Report 2014