Notes to the Consolidated Financial Statements (continued) 9 Provisions and contingent liabilities 9.1 Post-retirement obligations O Q, Introduction Report of the Executive Board Report of the Supervisory Board Sensitivity analysis - equity securities An increase or decrease of 1% in the share price of the equity securities at the reporting date would not have a material impact. Accounting estimates For other receivables HEINEKEN determines on each reporting date the impairment using an expected credit loss model which estimates the credit losses over 12 months. Only in case a significant increase in credit risk occurs (e.g. more than 30 days overdue, change in credit rating, payment delays in other receivables from the customer) the credit losses over the lifetime of the asset are incurred. Individually significant other receivables are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in groups that share similar credit risk characteristics. For more information on HEINEKEN's credit risk exposure refer to note 11.5. Accounting policies Fair value through OCI investments HEINEKEN's investments in equity securities are classified as fair value through other comprehensive income (OCI). These investments are interests in entities where HEINEKEN has less than significant influence. This is generally the case by ownership of less than 20% of the voting rights. Fair value through OCI investments are measured at fair value (refer to note 13.1). The fair value changes are recognised in OCI and presented within equity in the fair value reserve. Dividend income and foreign exchange gains and losses are recognised in profit or loss. Non-current derivatives Please refer to the accounting policies on derivative financial instruments in note 11.6. Other The remaining non-current assets as presented in the table above are initially measured at fair value and subsequently at amortised cost minus any impairment losses. Heineken N.V. Annual Report 2018Ï 87 Financial Statements Sustainability Review Other Information HEINEKEN makes contributions to pension plans that provide pension benefits to (former) employees upon retirement, both via defined benefit as well as defined contribution plans. Other long-term employee benefits include long-term bonus plans, termination benefits, medical plans and jubilee benefits. Refer to note 6.4 for the contribution to defined contribution plans. This note will relate to HEINEKEN's defined benefit pension plans. Refer to the table below for the present value of the defined benefit plans as at 31 December. In millions of 2018 2017 Present value of unfunded defined benefit obligations 251 296 Present value of funded defined benefit obligations 8,260 8,792 Total present value of defined benefit obligations 8,511 9,088 Fair value of defined benefit plan assets (7,682) (7,908) Present value of net obligations 829 1,180 Asset ceiling items 51 19 Defined benefit plans included under non-current assets 7 10 Recognised liability for defined benefit obligations 887 1,209 Other long-term employee benefits 67 80 954 1,289

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