113 Notes to the Consolidated Financial Statements (continued) Interest rate risk - profile - - Cash flow sensitivity analysis for variable rate instruments Commodity price risk Report of the Report of the Financial Sustainability Other Introduction Executive Board Supervisory Board Statements Review Information Heineken N.V. Annual Report 2017 At the reporting date, the interest rate profile of HEINEKEN's interest-bearing financial instruments was as follows: In millions of 2017 2016 Fixed rate instruments Financial assets 75 83 Financial liabilities (13,002) (11,984) Net interest rate swaps 417 (12,510) (11,901) Variable rate instruments Financial assets 2,599 3,214 Financial liabilities (2,376) (2,587) Net interest rate swaps (463) (240) 627 HEINEKEN applies fair value hedge accounting on certain fixed 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 (aftertax). 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 2016. Profit or loss Equity In millions of 100 bp increase 100 bp decrease 100 bp increase 100 bp decrease 31 December 2017 Variable rate instruments 2 (2) 2 (2) Net interest rate swaps (3) 3 (3) 3 Cash flow sensitivity (net) (1) 1 (1) 1 31 December 2016 Variable rate instruments 5 (5) 5 (5) Net interest rate swaps - - - - Cash flow sensitivity (net) 5 (5) 5 (5) 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, sugar and grains hedging, which are done in accordance with risk policies. HEINEKEN does not enter into commodity contracts otherthan to meet HEINEKEN's expected usage and sale requirements. As at 31 December 2017, the market value of commodity swaps was €77 million positive (2016: €11 million positive).

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