-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Contents
Overview
Report of the
Executive Board
Report of the
Supervisory Board
Financial
statements
Other
information
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, while 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
has been limited to aluminium hedging and to a limited extent gas and grains hedging, which are done in accordance with risk policies.
HEINEKEN does notenter into commodity contracts other than to meet El EIN EKEN's expected usage and sale reguirements. As at
31 December 2014, the market value of commodity swaps was EUR10 million negative (2013: EUR26 million negative).
Sensitivity analysis for aluminium hedges
The table below shows an estimated impact of 10 per cent change in the market price of aluminium.
Equity
10 per cent
10 per cent
In millions of EUR
increase
decrease
31 December 2014
Aluminium hedges
34
(34)
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:
2014
Carrying
Expected cash
Less than
More than
In millions of EUR
amount
flows
1 year
1 -2 years
2-5 years
5 years
Interest rate swaps:
Assets
166
1,701
605
82
1,014
Liabilities
(3)
(1,463)
(509)
(70)
(884)
Forward exchange contracts:
Assets
24
1,541
1,394
147
Liabilities
(88)
(1,607)
(1,454)
(153)
Commodity derivatives:
Assets
5
9
6
2
1
Liabilities
(15)
(19)
(13)
(5)
(1)
89
162
29
3
130
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.
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
(45)
(1,543)
(79)
(509)
(955)
Forward exchange contracts:
Assets
39
643
530
113
Liabilities
(4)
(607)
(496)
(111)
Commodity derivatives:
Assets
Liabilities
(26)
(26)
(24)
(2)
27
74
10
52
12
121
Eleineken N.V. Annual Report 2014
