114
Notes to the Consolidated Financial Statements (continued)
30. Financial risk management and financial instruments (continued)
Sensitivity analysis for aluminium hedges
31 December 2017
Cash flow hedges
113
978
978
(847)
(847)
50
1,159
1,126
33
(4)
(1,130) (1,096)
(34)
81
81
49
26
(4)
236
(2)
239
(2)
208
26
-
-
-
-
-
-
-
-
-
-
-
-
230
260
(4)
259
Report of the
Executive Board
Report of the
Supervisory Board
Financial
Statements
Sustainability
Review
Other
Information
Heineken N.V. Annual Report 2017
The table below shows an estimated pre-tax impact of 10% change in the market price of aluminium.
Equity
In millions of
10% increase 10% decrease
Aluminium hedges
50
(50)
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:
2017
In millions of
Carrying Expected cash
amount flows
Less than
1 year
1-2 years
2-5 years
More than
5 years
Cross-currency interest rate swaps
Assets
Liabilities
Forward exchange contracts
Assets
Liabilities
Commodity derivatives
Assets
Liabilities
2016
Carrying
Expected cash
Less than
More than
In millions of
amount
flows
1 year
1-2 years
2-5 years
5 years
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)
Commodity derivatives
Assets
24
24
12
7
5
Liabilities
(13)
(13)
(8)
(5)
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.
