110
Notes to the Consolidated Financial Statements (continued)
30. Financial risk management and financial instruments (continued)
Liquidity risk
Contractual maturities
-
Report of the
Report of the
Financial
Sustainability
Other
Introduction
Executive Board
Supervisory Board
Statements
Review
Information
Heineken N.V. Annual Report 2017
Liquidity risk is the risk that HEINEKEN will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled
by delivering cash or another financial asset. HEINEKEN's approach to managing liquidity is to ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to HEINEKEN's reputation.
HEINEKEN has a clear focus on ensuring sufficient access to capital markets to finance long-term growth and to refinance maturing debt
obligations. Financing strategies, including the diversification of funding sources are under continuous evaluation (information about borrowing
facilities is presented in Note 25). In addition, HEINEKEN seeks to align the maturity profile of its long-term debts with its forecasted cash flow
generation. Strong cost and cash management and controls over investment proposals are in place to ensure effective and efficient allocation of
financial resources.
The following are the contractual maturities of non-derivative financial liabilities and derivative financial assets and liabilities, including
interest payments:
In millions of
Carrying
amount
Contractual
cash flows
Less than
1 year
1-2 years
2-5 years
2017
More than
5 years
Financial liabilities
Interest-bearing liabilities
(15,378)
(18,549)
(3,580)
(1,397)
(3,877)
(9,695)
Trade and other payables (excluding interest payable,
dividends and derivatives and including non-current part)
(6,577)
(6,577)
(6,505)
(18)
(20)
(34)
Derivative financial assets and (liabilities)
Interest rate swaps used for hedge
accounting (net)
57
79
136
5
16
(78)
Interest rate swaps not used for hedge accounting, (net)
4
(18)
(7)
(6)
(5)
Forward exchange contracts used for hedge
accounting (net)
46
29
30
(1)
Commodity derivatives used for hedge
accounting (net)
77
78
46
6
26
Derivatives not used for hedge
accounting (net)
(7)
(8)
(8)
(21,778)
(24,966)
(9,888)
(1,411)
(3,860)
(9,807)
2016
In millions of
Carrying
amount
Contractual
cash flows
Less than
1 year
1 -2 years
2-5 years
More than
5 years
Financial liabilities
Interest-bearing liabilities
(14,570)
(16,792)
(4,006)
(1,703)
(4,895)
(6,188)
Trade and other payables (excluding interest payable,
dividends and derivatives and including non-current part)
(5,994)
(5,994)
(5,963)
(16)
(2)
(13)
Derivative financial assets and (liabilities)
Interest rate swaps used for hedge
accounting (net)
242
283
17
266
Forward exchange contracts used for hedge
accounting (net)
(23)
(32)
(24)
(8)
Commodity derivatives used for hedge
accounting (net)
11
11
4
2
5
Derivatives not used for hedge
accounting (net)
(13)
(14)
(14)
(20,347)
(22,538)
(9,986)
(1,459)
(4,892)
(6,201)
