116 Notes to the Consolidated Financial Statements (continued) 30. Financial risk management and financial instruments (continued) Interest rate risk - profile - - Cash flow sensitivity analysis for variable rate instruments - - - - Commodity price risk Sensitivity analysis for aluminium hedges Heineken NV. Report of the Report of the Financial Sustainability Other Annual Report 2016 Introduction Executive Board Supervisory Board Statements Review Information At the reporting date, the interest rate profile of HEINEKEN's interest-bearing financial instruments was as follows: In millions of EUR 2016 2015 Fixed rate instruments Financial assets 83 93 Financial liabilities (11,984) (11,057) Net interest rate swaps (42) (11,901) (11,006) Variable rate instruments Financial assets 3,214 1,023 Financial liabilities (2,587) (1,508) Net interest rate swaps 42 627 (443) HEINEKEN applies cash flow hedge accounting on certain floating rate financial liabilities and designates derivatives as hedging instruments. A change of 100 basis points in interest rates constantly applied during the reporting period would have increased (decreased) equity 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. This analysis is performed on the same basis as for 2015. Profit or loss Equity In millions of EUR 100 bp increase 100 bp decrease 100 bp increase 100 bp decrease 31 December 2016 Variable rate instruments 5 (5) 5 (5) Net interest rate swaps - - - - Cash flow sensitivity (net) 5 (5) 5 (5) 31 December 2015 Variable rate instruments (4) 4 (4) 4 Net interest rate swaps Cash flow sensitivity (net) (4) 4 (4) 4 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 not enter into commodity contracts other than to meet HEINEKEN's expected usage and sale requirements. As at 31 December 2016, the market value of commodity swaps was EUR 11 million positive (2015: EUR 70 million negative). The table below shows an estimated pre-tax impact of 10% change in the market price of aluminium. Equity 10% 10% In millions of EUR increase decrease 31 December 2016 Aluminium hedges 40 (40)

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2016 | | pagina 117