Notes to the Consolidated Financial Statements (continued)
Introduction Report of the Executive Board Report of the Supervisory Board
HEINEKEN's policy is to avoid issuing guarantees unless this leads to substantial benefits for HEINEKEN.
For some loans (to customers) HEINEKEN does issue guarantees. In these cases HEINEKEN aims to receive
security from the customer to limit the credit risk exposure.
Heineken N.V. has issued a joint and several liability statement to the provisions of Section 403, Part 9, Book
2 of the Dutch Civil Code with respect to legal entities established in the Netherlands. Refer to note A.1 of
the Company financial statements.
Exposure to credit risk
Below the maximum exposure to credit risk as per reporting date is shown:
In millions of
Cash and cash equivalents
Trade and other receivables, excluding prepayments
Fair value through OCI investments*
Loans and advances to customers
Other non-current receivables
Guarantees to banks for loans (to third parties)
In 2017 these investments were classified as available-for-sale investments.
Heineken N.V. Annual Report 2018! 100
The exposure to credit risk by geographic region for trade and other receivables excluding prepayments is
Exposure to credit risk
1 Africa, Middle East Eastern Europe
1 Asia Pacific
1 Head Office and Other/eliminations
Liquidity risk is the risk that HEINEKEN will have difficulties to meet payment obligations associated with
its financial liabilities, like payment of financial debt or trade payables when they are due. HEINEKEN's
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient funds to
meet its liabilities when due without incurring unacceptable losses.
HEINEKEN has a clear focus on ensuring sufficient access to capital markets to finance long-term growth
and to refinance maturing debt obligations. HEINEKEN seeks to align the maturity profile of its long-term
debts with its forecasted cash flow generation. More information about borrowing facilities is presented
in note 11.3. Furthermore, strong cost and cash management and controls over investment proposals are
The following table presents an overview of the expected timing of cash out and inflows of non-derivative
financial liabilities and derivative financial assets and liabilities, including interest payments.