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Notes to the Consolidated Financial Statements
1 Heineken N.V. Report of the Report of the Financial Sustainability Other
Annual Report 2020 Introduction Executive Board Supervisory Board Statements Review Information
Exposure to credit risk
The maximum exposure to credit risk as at 31 December is as follows:
In millions of
Note
2020
2019
Cash and cash equivalents
11.2
4,000
1,821
Trade and other receivables, excluding prepayments
7.2
2,424
3,738
Derivative assets
11.6
98
30
Fair value through OCI investments
8.5
13
408
Loans and advances to customers
8.4
194
277
Other non-current receivables
8.5
307
406
Guarantees to banks for loans (to third parties)
9.3
330
332
7,366
7,012
The exposure to credit risk by geographic region for trade and other receivables excluding prepayments is
as follows:
Exposure to credit risk
468
518
c 2,000
242
284
Europe
2020
Africa, Middle East Eastern Europe
2019
Head Office and Other/eliminations
Liquidity risk
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. As a result of the COVID-19 pandemic, there is
increased attention for and monitoring of risks associated with working capital that might impact liquidity.
HEINEKEN remains focused 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 as well as controls over investment proposals are in place.
Contractual maturities
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.
2020
In millions of
Carrying
amount
Contractual
cash flows
Less than
1 year
1-5 years
More than
5 years
Financial liabilities
Interest-bearing liabilities
(16,997)
(20,067)
(3,672)
(5,899)
(10,496)
Lease liabilities
(1,199)
(1,684)
(314)
(706)
(664)
Trade and other payables and returnable
packaging deposits (excluding interest payable,
dividends and including non-current part)
(6,392)
(6,392)
(6,347)
(25)
(19)
Derivative financial assets and (liabilities)
Cross currency interest rate swaps
(14)
(61)
8
(62)
(7)
Forward exchange contracts
4
(12)
(12)
Commodity derivatives
18
18
18
Other derivatives
3
16
1
4
11
Total
(24,577)
(28,182)
(10,318)
(6,688)
(11,175)
2019
Financial liabilities
Interest-bearing liabilities
(15,793)
(18,653)
(3,831)
(5,434)
(9,388)
Lease liabilities
(1,258)
(1,861)
(304)
(683)
(874)
Trade and other payables and returnable
packaging deposits (excluding interest payable,
dividends and including non-current part)
(7,972)
(7,971)
(7,846)
(91)
(34)
Derivative financial assets and (liabilities)
Cross currency interest rate swaps
(28)
(97)
(8)
(26)
(63)
Forward exchange contracts
(29)
(54)
(53)
(1)
Commodity derivatives
(5)
(5)
(5)
Other derivatives
2
2
2
Total
(25,083)
(28,639)
(12,045)
(6,235)
(10,359)
For more information on the derivative assets and liabilities refer to note 11.6.
