SECTION 4.4  Borrowings and cash Foreign exchange risk related to net investments and financing  activities CURRENCY PROFILE OF BORROWINGS  BEFORE AND AFTER DERIVATIVE FINANCIAL  INSTRUMENTS 4.5.2  Hedging of net investments in foreign subsidiaries 4.5.1  Currency profile of the Group’s  borrowings Consolidated financial statements SECTION 4: FINANCING COSTS, CAPITAL STRUCTURE AND EQUITY 95 Carlsberg Group Annual Report 2013 The Group holds a number of investments in  foreign subsidiaries where the translation of  net assets to DKK is exposed to foreign ex- change risks. The Group hedges part of this  foreign exchange exposure by entering into  forward exchange contracts (net investment  hedges). This applies to net investments in  CHF, CNY, MYR, HKD and SEK. The basis for  hedging is reviewed at least once a year, and  the two parameters, risk reduction and cost,  are balanced.  Where the fair value adjustments do not  exceed the value adjustments of the invest- ment, the adjustments of the financial  instruments are recognised in other com- prehensive income; otherwise the fair value  adjustments are recognised in the income  statement. For 2013, all fair value adjust- ments were recognised in other comprehen- sive income. The effect of net investment  hedges on the income statement and other  comprehensive income is summarised on the  next page. The Group is exposed to foreign exchange  risk on borrowings denominated in a cur- rency other than the Group’s functional  currency due to the foreign exchange risk as  well as the risk that arises when net cash in- flow is generated in one currency and loans  are denominated in and have to be repaid in  another currency. At 31 December 2013, 79% of the Group’s net  financial debt was in EUR (2012: 87%), cf.  section 4.6. Group Treasury monitors the Group’s gross  credit exposure to banks and operates with  individual limits on banks based on rating,  level of government support and access to  netting of assets and liabilities.  The carrying amount of DKK 3,714m (2012:  DKK 5,760m) represents the maximum credit  exposure related to cash and cash equivalents. The credit risk on receivables is described in section 1.6.1.  The Group primarily enters into financial instru- ments and transactions with the Group’s rela- tionship banks, i.e. banks extending loans to  the Group. In most cases, the Group will be in a net debt position with its relationship banks.  The Group is exposed to foreign exchange  risk on the translation of the net result and  net assets in foreign investments to DKK and  on borrowings denominated in a currency  other than the functional currency of the  individual Group entity.  EXPOSURE TO CREDIT RISK  2013 DKK million Original  principal Effect  of swap After  swap CHF 40 1,825 1,865 DKK 1,788 265 2,053 EUR 32,128 -2,668 29,460 GBP 2,796 -2,720 76 RUB 3 -390 -387 USD 1,730 1,771 3,501 Other 1,726 1,917 3,643 Total 40,211 - 40,211 Total 2012 40,058 - 40,058