g)@
91
Notes to the Consolidated Financial Statements
8.4 Loans and advances to customers
Loans and advances to customers
Balance as at 1 January
Heineken N.V. Report of the Report of the Financial Sustainability Other
Annual Report 2020 Introduction Executive Board Supervisory Board Statements Review Information
Lease related notes
For lease liabilities, refer to note 11.3 Borrowings. For short-term and low value leases, refer to other expenses
in note 6.3 Raw materials, consumables and services. For the lease receivables, refer to other receivables
in note 8.5 Other non-current assets and other receivables in note 7.2 Trade and other receivables. For the
contractual maturities of lease liabilities, refer to note 11.5 Credit, liquidity and market risk.
Loans and advances to customers are inherent to HEINEKEN's business model. Loans to customers are
repaid in cash on fixed dates while the settlement of advances to customers are linked to the sales volume of
the customer. Loans and advances to customers are usually backed by collateral such as properties.
In millions of
2020
2019
Loans to customers
Advances to customers
53
141
55
222
194
277
The movement in allowance for impairment losses for loans and advances to customers during the year is
as follows:
Allowance for credit losses 2020 - Loans and advances to customers
120
100
In millions of
2020
2019
79
135
Transfers
(10)
Addition to allowance
30
7
Allowance used
2
(56)
Allowance released
(7)
(3)
Effect of movements in exchange rates
(4)
2
Other
(6)
Balance as at 31 December
90
79
Accounting estimates
HEINEKEN determines on each reporting date the impairment of loans and advances to customers using an
expected credit loss model which estimates the credit losses over 12 months. If 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), credit losses over the lifetime of the asset are incurred. Individually significant financial assets
are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in
groups that share similar credit risk characteristics. Due to the uncertainty relating to the depth and duration
of the COVID-19 pandemic and its related impact on HEINEKEN's customers, more judgement is required for
the calculation of expected credit losses compared to previous years. For more information on HEINEKEN's
credit risk exposure refer to note 11.5.
Accounting policies
Loans and advances to customers are initially measured at fair value and subsequently at amortised cost
minus any impairment losses.
Addition to Allowance Allowance Effect of Balance as at
allowance used released movements in 31 December
exchange rates
