SECTION 4.5  Foreign exchange risk related to net investments and financing activities NET INVESTMENT HEDGES 2013 2012 Million Hedging of  investment,  amount  in local  currency Addition to  net investment,  amount  in local  currency Total adjust ment to other comprehensive  income (DKK) Income statement (DKK) Hedging of  investment,  amount  in local  currency Addition to  net investment,  amount  in local  currency Total adjustment to other comprehensive  income (DKK) Income statement (DKK) CNY -1,250 - 8 - -1,250 - -5 - CHF -380 - 29 - -380 - -20 - NOK - 3,000 -326 - -750 3,182 125 - SEK -4,630 - 160 - -4,560 - -167 - RUB - - -39 - -13,572 - -105 - Other - - 50 - - - -44 1 Total -118 - -216 1 The most significant net risk relates to  foreign exchange adjustment of net assets  in RUB. This risk was hedged only partially  for most of the year and not hedged at all  at year-end. The Group is exposed to foreign exchange  risk on borrowings denominated in a cur- rency other than the functional currency of the individual Group entity. Fair value adjustments of net investment  hedges and loans classified as additions to net investments in the financial year are rec- ognised in other comprehensive income and  amounted to DKK -118m (2012: DKK -216m).  The fair value of derivatives used as net invest- ment hedges recognised at 31 December 2013  amounted to DKK 35m (2012: DKK -10m). The main principle for funding of subsidiar- ies is that loans and borrowings should be  in local currency or hedged to local currency  to avoid foreign exchange risk. However, in  some Group entities debt is denominated in  a currency other than the local entity’s func- tional currency without the foreign exchange  risk being hedged. This applies primarily  to a few entities in Eastern Europe and is  based on an assessment of the alterna- tive cost of financing the entity in the local  currency. For the countries concerned, the  interest rate level in the local currency, and  thus the additional cost of financing in local  currency, is so high that it justifies a foreign  exchange risk. In some countries financing in local currency is not available at all. The tables in the sensitivity analysis in sec- tion 4.5.4 show the impact of a 10% adverse  development in exchange rates for the  relevant currencies at 31 December. The impact on operating profit is primarily  currency impact as described in section 1.4.  In 2013, the Group had net gains on foreign exchange and fair value adjustments of finan- cial instruments of DKK 161m (2012: DKK 17m),  cf. section 4.1. Fluctuations in foreign exchange rates will  also affect the level of debt as funding is  obtained in a number of currencies. In 2013,  net interest-bearing debt decreased by DKK  134m (2012: an increase of DKK 327m) due to  changes in foreign exchange rates. The main  reason for the decrease was a reduction of the  net debt in GBP; the GBP/DKK rate depreci- ated from the end of 2012 to February 2013,  at which time a GBP 200m bond was repaid. For 2013, the total losses on net investments  (Carlsberg’s share), loans granted to subsidiar- ies as an addition to the net investment and  Consolidated financial statements SECTION 4: FINANCING COSTS, CAPITAL STRUCTURE AND EQUITY 96 Carlsberg Group Annual Report 2013 4.5.3  Financing of local entities IMPACT ON OTHER COMPREHENSIVE INCOME IMPACT ON STATEMENT OF FINANCIAL POSITION IMPACT ON FINANCIAL ITEMS, NET IMPACT ON OPERATING PROFIT 4.5.4  Impact on financial statements  and sensitivity analysis 