117 Notes to the Consolidated Financial Statements (continued) Cash flow hedges - - - - - - - - - Commodity derivatives - - - - - - - - - - - - - - Commodity derivatives - - - - - Net investment hedges Heineken NV. Report of the Report of the Financial Sustainability Other Annual Report 2016 Introduction Executive Board Supervisory Board Statements Review Information The following table indicates the carrying amount of derivatives and the periods in which all the cash flows associated with derivatives that are cash flow hedges are expected to occur: 2016 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 ------ Liabilities ------ Cross-currency interest rate swaps Assets 242 1,167 55 1,112 Liabilities (885) (38) (847) Forward exchange contracts Assets 33 1,302 1,144 158 Liabilities (56) (1,335) (1,169) (166) Assets 24 24 12 7 5 Liabilities (13) (13) (8) (5) 230 260 (4) 259 5 2015 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 ------ Liabilities (1) (2) (2) Cross-currency interest rate swaps Assets 215 1,220 90 53 1,077 Liabilities (953) (68) (38) (847) Forward exchange contracts Assets 37 1,437 1,289 148 Liabilities (39) (1,453) (1,301) (152) Assets 1 1 1 Liabilities (71) (70) (42) (20) (8) 142 180 (33) (9) 222 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 typically one or two months earlier than the occurrence of the cash flows as in the above table. HEINEKEN has entered into several cross-currency interest rate swaps which have been designated as cash flow hedges to hedge the foreign exchange rate risk on the principal amount and future interest payments of its US dollar borrowings. The borrowings and the cross-currency interest rate swaps have the same critical terms. HEINEKEN hedges its investments in certain subsidiaries by entering into local currency denominated borrowings, which mitigate the foreign currency translation risk arising from the subsidiaries net assets. These borrowings are designated as a net investment hedge. The fair value of these borrowings at 31 December 2016 was EUR 506 million (2015: EUR 536 million), and no ineffectiveness was recognised in profit and loss in 2016 (2015: nil).

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