Policy ratios

Funding ratios
The funding ratio reflects the pension fund’s financial situation. It is the ratio between the fund’s assets and the pension commitments. A funding ratio of 100% implies that the assets are at the same level as the pension commitments. The higher the funding ratio, the healthier the fund.

When calculating the funding ratio, Heineken’s subordinated loan is valued at the market value and indicated as equity capital up to a maximum of 50% of the total equity capital or the minimum equity capital, whichever is the lowest.

The current funding ratio
The current funding ratio denotes the ratio between the HPF’s commitments and assets at a given time.

The policy funding ratio
The policy funding ratio is based on the average funding ratio over the past 12 months.

Pension commitments
The pension commitments are determined by the Board at the close of each calendar year and published in the Annual Report. The pension commitments are estimated throughout the year.

The current funding ratio over the last 12 months

Month	Funding ratio
October 2022	152.1%
September 2022	149,4%
August 2022	144,6%
July 2022	133.5%
June 2022	145.5%
May 2022	143.0%
April 2022	140.5%
March 2022	131.2%
February 2022	121.5%
January 2022	117.4%
December 2021	119.2%
November 2021	113.3%
Policy funding ratio (average 12 months)	134.3%

The pension commitments decrease when interest rates increase. With a higher interest rate, you have to reserve less capital in order to be able to meet the pension obligations in the future. This can also be seen in the higher funding ratio.