g)@
101
Notes to the Consolidated Financial Statements
11Financing and capital structure
11.1 Net finance income and expense
Interest income
Interest expenses
11.2 Cash and cash equivalents
statement
-
Liabilities
-
Liabilities
-
Heineken N.V. Report of the Report of the Financial Sustainability Other
Annual Report 2020 Introduction Executive Board Supervisory Board Statements Review Information
Interest expenses are mainly related to interest charges over the outstanding bonds, commercial paper and
bank loans (refer to note 11.3). Other net finance income and expenses comprises dividend income, fair value
changes of financial assets and liabilities measured at fair value, transactional foreign exchange gains and
losses (on net basis), unwinding of discount on provisions and interest on the net defined benefit obligation.
In millions of
Note
2020
2019
50
75
(497)
(529)
Dividend income from fair value through OCI investments
10
10
Net change in fair value of derivatives
13
(14)
Net foreign exchange gain/(loss)'
(133)
(25)
Unwinding discount on provisions
9.2
(11)
(19)
Interest on the net defined benefit obligation
9.1
(23)
(26)
Other
1
15
Other net finance income/(expenses)
(143)
(59)
Net finance income/(expenses)
(590)
(513)
1 Transactional foreign exchange effects of working capital and foreign currency denominated loans, the latter being offset by net change in fair value
of derivatives.
Interest expenses include the interest component of lease liabilities of €60 million (2019: €55 million).
Accounting policies
Interest income and expenses are recognised as they accrue, using the effective interest method.
Dividend income is recognised in the income statement on the date that HEINEKEN's right to receive
payment is established, which is the ex-dividend date in the case of quoted securities.
Cash and cash equivalents comprise cash balances and call deposits. In general bank overdrafts form
an integral part of HEINEKEN's cash management and are included as a component of cash and cash
equivalents for the purpose of the statement of cash flows.
In millions of
Note
2020
2019
Cash and cash equivalents
4,000
1,821
Bank overdrafts
11.3
(481)
(1,134)
Cash and cash equivalents in the statement of cash flows
3,519
687
Cash and cash equivalents increased in order to build liquidity buffers in relation to the COVID-19
pandemic. For more information on HEINEKEN's liquidity risk exposure refer to note 11.5.
The following table presents recognised 'Cash and cash equivalents' and 'Bank overdrafts', and the impact of
the netting of gross amounts. The 'Net amount' below refers to the impact on HEINEKEN's balance sheet if all
amounts subject to legal offset rights are netted.
2020
In millions of
Gross
amounts
Gross amounts
offset in the
of financial
position
Net amounts
presented in
the statement
of financial
position
Amounts subject
to legal offset
rights
Net amount
Assets
Cash and cash equivalents
4,000
4,000
(235)
3,765
Bank overdrafts
(481)
(481)
235
(246)
2019
Assets
Cash and cash equivalents
1,821
1,821
(600)
1,221
Bank overdrafts
(1,134)
(1,134)
600
(534)
