Carlsberg A/S Ny Carlsberg Vej 100 Tel +45 33 27 33 00 1760 København V CVR no: 61056416 COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 1 of 28 INTERIM RESULTS AS AT 31 MARCH 2008 First quarter characterised by continuing healthy development of the business and preparation for integration of acquired activities • Organic volume growth of 4% and rising market shares in important markets. Continued market share gains in main BBH markets. • Net revenue climbed 6% to a total of DKK 9.4bn (DKK 8.9bn in 2007). Calculated in local currencies, net revenue climbed 9%. • Price increases and improved product mix across the markets more than offset the effect of rising raw material prices. • Operating profit for beverage activities was DKK 381m. The corresponding figure for the first quarter of 2007 (adjusted for gains of DKK 58m on the sale of real estate in Poland) was DKK 345m, an underlying improvement of DKK 36m or 10% (DKK +61m in local currency or +18%). The result comes in the wake of good business development and in all regions the underlying business was ahead of the earnings plans made. • Operating profit for the Group up 13% and 19% in local currencies. • Ahead of the acquisition of the activities of Scottish & Newcastle plc (S&N), detailed planning of the forthcoming process has been carried out to help ensure rapid and smooth integration of the new activities. • Carlsberg is prevented from providing guidance due to the future Rights Issue. Updated guidance will be given with the first financial results announcement following the Rights Issue. “The results for the first quarter normally make only a modest contribution to Carlsberg's earnings. Nevertheless, developments in the quarter underline the fact that we have a strong business, equipped in every way for the challenges and opportunities which lie ahead after acquisition of the activities of S&N,” says President & CEO Jørgen Buhl Rasmussen. www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 2 of 28 Contacts: Investors Mikael Bo Larsen +45 3327 1223 Media Jens Peter Skaarup +45 3327 1417 Carlsberg will present the financial statement at a conference call for analysts and investors today at 9.30 a.m. CET (8.30 a.m. GMT). The conference call will refer to a slide deck, which will be available beforehand at www.carlsberggroup.com. www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 3 of 28 KEY FIGURES AND FINANCIAL RATIOS DKK million Q1 Q1 2007 2008 2007 Sales volumes (million hl) Beer 23,7 22,4 115,2 Soft drinks 4,6 4,4 20,8 Income statement Net revenue 9.436 8.863 44.750 Operating profit items 388 402 5.262 Special items, net -37 -31 -427 Consolidated profit -87 86 2.596 Attributable to: Minority interests 42 41 299 Shareholders in Carlsberg A/S -129 45 2.297 Balance sheet Total assets 62.759 59.422 61.220 Invested capital 46.059 44.580 45.394 Interest-bearing debt, 22.652 21.175 19.726 Equity, shareholders in Carlsberg A/S 17.272 17.135 18.621 Cash flow Cash flow from operating -688 -409 4.837 activities Cash flow from investing -2.096 -790 -4.927 activities Free cash flow -2.784 -1.199 -90 Financial ratios Operating margin % 4,1 4,5 11,8 Return on average invested (ROIC) - 11,5 9,9 11,7 capital - - - - ) Equity ratio % 29,6 31,3 32,6 Debt/equity ratio (financial x 1,2 1,1 1,0 Interest cover x 0,8 1,6 4,4 Stock market ratios Earnings per share (EPS) - -1,7 0,6 30,1 - K Cash flow from operating per share - -9,0 -5,4 63,2 activities - r - - - - e (CFPS) Free cash flow per share - -36,5 -15,7 -1,2 (FCFPS) - K Share price (B-shares) - 604 607 617 - K Number of shares (period-end) - 76.278 76.278 76.246 - - - 0 Number of shares (average, excl. treasury 76.246 76.264 76.254 shares) www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 4 of 28 BUSINESS DEVELOPMENT Carlsberg continued to make progress in the first quarter, gaining shares in key markets in both the growth markets and the mature markets. Overall market development in the first quarter continued the general trend. The Western European markets showed a general slowdown on volume terms, while the growth markets in Eastern Europe and Asia developed strongly, with Russia experiencing slightly higher demand compared to the record high level in first quarter last year, and China in particular contributing high organic growth. Carlsberg sold a total of 16.8m hl of beer (calculated pro rata), an increase of 6% (16.0m hl in the first quarter of 2007). Organic growth accounted for approximately 6% of this increase, and acquisitions for less than 1%. Sales of other beverages grew by 2% to 3.9m hl (3.8m hl in the first quarter of 2007). The international brands Carlsberg and Tuborg both enjoyed a positive trend, achieving volume increases of 7% and 10%, respectively. The positive trend for the Carlsberg brand can be attributed, among other things, to the fact that Malaysia has gained market share after the restructuring programme put in place last year, while the high rate of growth for the Tuborg brand is the result of continued sales success in Eastern Europe. The water category has shown decline in key markets driven by the debate on environmental consequences on the use of bottled water versus tap water. Net revenue climbed 6% to DKK 9.4bn (DKK 8.9bn in the first quarter of 2007). Price increases have had a positive effect on the average selling price per litre of beer, while changes in relative distribution of sales among the individual geographical regions had a negative effect. The overall price/mix effect for beer brought about an increase in average selling prices of approximately 4%. Operating profit before special items was DKK 388m (DKK 402m in the first quarter of 2007), of which beverage activities generated DKK 381m. Adjusted for gains of DKK 58m from the sale of real estate in Poland, operating profit for the first quarter of 2007 was DKK 345m. The underlying improvement was therefore DKK 36m or +10%. When adjustments are furthermore made for the exchange rate effect, the underlying increase was DKK 61m or +18%. In all regions, results of the underlying business were above the expectations in the earnings plans for 2008. In some markets, a number of activity- related costs were phased differently this year than last year (higher in the beginning of the year) - and the operational gearing has increased due to the initiation of production in Novosibirsk (BBH). It should be noted that, as a result of seasonal fluctuations in demand for beer in the regions in which Carlsberg operates, the first quarter is expected to account for only a modest share of the overall profit for the year. www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 5 of 28 Other activities, including the sale of real estate, contributed DKK 7m against DKK -1m in the first quarter of 2007. In connection with Carlsberg's acquisition of part of the activities in S&N plc (cf. below), the exposure to GBP for the purchase sum was hedged via currency options (and, after the end of the quarter, purchase of GBP). In accordance with IFRS, part of the option premium was charged to financial items in the income statement in the first quarter, as a result of which DKK 104m has been expensed. After this, net profit was DKK -87m (DKK 86m in the first quarter of 2007) in a quarter which was characterised by sound business development, net sales price increases and improved product mix which more than compensated for increasing raw material prices, relatively higher activity-related costs which this year in some markets have been "phased" differently compared to last year as well as an effect on profit from the S&N transaction - and where the underlying operational profit for the beverage activities rose by 18% in local currency and thus was ahead of earnings plans. On 25 January 2008 Carlsberg and Heineken N.V. (together "The consortium") announced that they were submitting a joint cash offer of GBP 8 per share in S&N, and that the Board of S&N was recommending that its shareholders should accept the offer. The relevant approvals were subsequently obtained from the competition authorities, and S&N's shareholders voted at an extraordinary general meeting to sell the company. The Consortium completed the transaction on 28 April 2008. Extensive efforts have been made in advance of completion to help ensure effective integration of the acquired activities in Carlsberg's existing business, including both organisational and system adjustments, and realisation of expected synergies. After completion of the Scottish & Newcastle transaction, the Carlsberg Group has been organised into four new regions: Eastern Europe, Northern Europe, Western Europe and Asia. Anton Artemiev, President of Baltika since 2005, will head Eastern Europe and has been promoted to Senior Vice President and member of the Executive Committee. The other heads of regions are Senior Vice President Mikael Aro (Northern Europe), Senior Vice President Alex Myers (Western Europe) and Senior Vice President Jesper Bjørn Madsen (Asia). It was further announced in the first quarter that Carlsberg has started negotiations concerning the possible sale of its 95.65% shareholding in the Turkish company Türk Tuborg, and these discussions are continuing. After the end of the quarter, Carlsberg was given the opportunity to acquire a 16% shareholding in connection with the privatisation of the Vietnamese brewery Hanoi Beer & Beverage Corp. (Habeco) for DKK 545m. Carlsberg is also partnered with Habeco in southern Vietnam, where a greenfield brewery is under construction. www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 6 of 28 Also after the end of the quarter, Carlsberg signed a non-binding letter of intent with The Coca-Cola Company to pursue the opportunity of continuing on a long term basis their collaboration in Denmark and Finland. In addition to the above, the letter of intent foresees that The Coca-Cola Company may acquire Carlsberg's mineral water trademarks in Denmark and also acquire or license certain non-alcoholic beverage brands in Finland. The finalization of the described transactions is expected to happen in the second quarter of 2008. WESTERN EUROPE DKK million Q1 Q1 Change 2008 2007 (%) 2007 Beer sales (million hl) 5,6 5,7 -1 28,5 Net revenue 5.658 5.645 0 27.499 Operating profit 129 197 -34 2.738 Operating margin (%) 2,3 3,5 -1,2 10,0 In Western Europe sales were broadly stable other than slight decline in the United Kingdom and Germany. Carlsberg's total beer sales were 5.6m hl, 1% down on the volume sold in the first quarter of 2007. Total sales for other beverages were 3.2m hl, 3% lower than the same period of 2007 as a result of lower sales of mineral water. Carlsberg gained market shares in Sweden, Finland, the United Kingdom and Switzerland. The continued focus on innovation and launching new products helped to secure the positive trend. Carlsberg LITE has now been introduced in several markets and, within the other beverages category, a new soft drink, Carlsberg Sport, and a new cider, Somersby, were introduced in Norway and Denmark. Net revenue rose marginally to DKK 5,658m against DKK 5,645m in the first quarter of 2007, driven by a positive development in the Nordic countries and in Switzerland and Germany. General price increases for beer with an effect in local currencies of +4% have been implemented in the period, although this has been reduced by a negative currency impact of -1%. A number of price increases have only affected part of the period and, similarly, further price increases which are expected to have an impact later in the year have been planned. There was a total increase in net revenue of 2% for beer (volume - 1%, prices +4%, currency -1%). In the beer category, gross profit for every country other than the United Kingdom and Germany was higher than in 2007 with price increases more than offsetting input cost pressure. In the United Kingdom business was affected by continued strong growth in off-trade and the new Punch Taverns contract in the on-trade. In Germany business was particularly affected by changes in mix towards more sales of low-price products and the fact that Carlsberg was the first major brewer to announce and implement price www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 7 of 28 increases in the market is considered to have had a particularly negative effect on volume in the first quarter. Subsequently several competing breweries on the German market have also implemented price increases. Operating profit was DKK 129m against DKK 197m in the first quarter of 2007, a decrease of DKK 68m. This development primarily reflects the negative mix effect (beer vs other beverages) and in some markets phasing of marketing spend related to launch of new products as well as in some markets phasing of operational expenses related to efficiency improvements in the first quarter. BALTIC BEVERAGES HOLDING (50%) DKK million Q1 Q1 Change 2008 2007 (%) 2007 Beer sales (million hl) 5,9 5,4 9 29,1 Net revenue 2.117 1.832 16 10.435 Operating profit 295 333 -11 2.338 Operating margin (%) 13,9 18,2 -4,3 22,4 In the first three months of 2007 the Russian market grew 28% as a result of the very mild winter and the effects of supply problems for wine and spirits, and in the first three months of 2008 further growth was achieved with January and February experiencing a slight decline and March growing 8%. Innovation and the introduction of new products are helping to drive the market and ensure consumer acceptance of both price rises and increases in the duty on beer. Total beer volumes in BBH rose by 7%, with a pro-rata increase of 9% to 5.9m hl (5.4m hl in the first quarter of 2007), as a result of continued high growth driven by local power brands and not least the Tuborg brand (+38%). Net revenue climbed 16% to DKK 2,117m (DKK 1,832m in the first quarter of 2007). In addition to the volume trend, this improvement can also be attributed to an improved price/mix contribution of approx. 14% and exchange rate movements of approx. -5%. Gross profit grew in line with the volume trend, and the overall change in price/mix more than offset the negative effect of rising raw material prices. Considerable investments have been made to support the future growth of the business. Notably, this includes the brewery in Novosibirsk and investments in sales and logistics, which increase operational leverage and reduce operating profit to DKK 295m (DKK 333m in the first quarter of 2007). The operating margin was 13.9% (18.2% in the first quarter of 2007). BBH has further strengthened its position in Russia and, as a result, achieved a market share of 38.1% in the first quarter (37.5% in the first quarter of 2007). This trend was driven by a strong development for the Baltika brand (+23%) and for the Tuborg brand in the premium segment (+43%). www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 8 of 28 Despite an economic slowdown in the Baltic States, strong focus on value in both beer and non-beer categories continued. After last year's relaunch of Slavutich, the positive trend in the Ukraine continues with significant volume contributions from Slavutich Light and a beer volume increase of 40% - significantly ahead of market. The level of investment in the Ukraine remains high. Of the other markets, growth is high in Uzbekistan and Belarus, while Kazakhstan in this quarter primarily is driven by growth in the Baltika brand. EASTERN EUROPE EXCL. BBH DKK million Q1 Q1 Change 2008 2007 (%) 2007 Beer sales (million hl) 2,8 2,7 4 14,8 Net revenue 939 732 28 4.267 Operating profit 0 5 - 477 Operating margin (%) 0 0,7 -0,7 11,2 Note: 2007-Q1 includes one-off gain on sale of property of DKK 58m. In what is traditionally a small quarter volumes continued the positive trend with market share gains in several key markets. Carlsberg's total sales of beer grew by 4% to 2.8m hl (2.7m hl in the first quarter of 2007), with market shares gained in Serbia and Bosnia. Other beverages also contributed to the positive development. Net revenue was DKK 939m (DKK 732m in the first quarter of 2007), an increase of 28%. A very sound development in price/mix contributed favourably to this figure. Operating profit was DKK 0m against DKK 5m in the first quarter of 2007. However, the figures for 2007 include income of DKK 58m from the sale of real estate in Poland, in the light of which the underlying profit trend is very positive. www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 9 of 28 ASIA DKK million Q1 Q1 Change 2008 2007 (%) 2007 Beer sales (million hl) 2,5 2,2 17 9,6 Net revenue 727 634 15 2.535 Operating profit 119 82 45 330 Operating margin (%) 16,4 13,0 3,4 13,0 The Asian markets continued to show strong growth, with beer volumes increasing by 17% to 2.5m hl (2.2m hl in the first quarter of 2007). Organic growth accounted for 13 percentage points of this, while 4 percentage points derived from acquisitions. Net revenue was DKK 727m against DKK 634m in the first quarter of 2007, an increase of 15% or 24% in local currencies. Operating profit was DKK 119m against DKK 82m in the first quarter of 2007. The increase in earnings can primarily be attributed to higher profits in Malaysia after last year's changes to the business model, which has successfully repositioned the business. CENTRAL EXPENSES (NOT ALLOCATED) Central expenses totalled DKK -162m against DKK -214m in the first quarter of 2007. These expenses are incurred for ongoing support of the Group's overall operations and development, including in particular the costs of running the head office, costs incurred in connection with business development projects, and costs for central marketing, including sponsorships. OTHER ACTIVITIES In addition to beverage activities, Carlsberg has interests within the development and sale of real estate, primarily at its former brewery sites, and the operation of the Carlsberg Research Center. These activities generated operating profit of DKK 7m in the first quarter against DKK -1m in the first quarter of 2007. Monetising the value of assets including brewery sites, which are no longer used in operations remains an important focus to provide capital to the rest of the Group and enhance return on capital employed. www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 10 of 28 COMMENTS ON THE FINANCIAL STATEMENTS ACCOUNTING POLICIES The present interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, as adopted by the EU, and additional Danish regulations governing presentation of interim reports by listed companies. The interim report has been prepared using the same accounting policies as the Annual Report for 2007. No new standards or interpretations have been adopted by the EU in 2008. INCOME STATEMENT Net revenue of DKK 9,436m was generated in the first quarter, an increase of 6% on the same period of 2007 (DKK 8,863m). Calculated in local currencies the increase was 9%. The revenue development was driven by positive developments throughout the Group, particularly in BBH and the rest of Eastern Europe, and Asia. Organic growth was DKK 540m (+6%). Beer sales represented DKK 6,842m of total sales (DKK 6,296m in the first quarter of 2007), equivalent to 72.5% (71.0% in the same period in 2007). Gross profit rose by 4% to DKK 4,417m (DKK 4,266m in the first quarter of 2007). The gross margin was 46.8%, which was 1.3 percentage points lower than in the same quarter of 2007. Price rises and a more profitable product mix on beer more than compensated for higher raw material prices. Sales and distribution costs rose by DKK 138m to DKK 3,304m (DKK 3,166m in the first quarter of 2007), while administrative expenses fell by DKK 14m to DKK 784m (DKK 798m in the first quarter of 2007). This development reflects an increased level of activity on the growth markets on the one hand and a continuing focus on adjusting the cost base on the other. Other operating income, net, was DKK 47m against DKK 88m in the same period of 2007. This development can primarily be attributed to gains on the sale of real estate in Poland (DKK 58m) included in the first quarter of 2007. Profit from associates was DKK 12m, which is on a par with the same period of 2007. Operating profit before special items was DKK 388m against DKK 402m in the first quarter of 2007. Beverage activities generated a profit of DKK 381m against DKK 403m in the first quarter of 2007. Adjusted for gains on the sale of real estate in Poland in the first quarter of 2007, operating profit before special items for beverage activities showed an improvement of DKK 36m (+10%). This positive development can be attributed to higher profits in Eastern Europe and Asia, and a reduction in central expenses (not www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 11 of 28 allocated). The profit contribution from other activities, including sale of real estate, was DKK 7m against DKK -1m in the first quarter of 2007. Net special items were DKK -37m against DKK -31m in first quarter of 2007. Net financial items were DKK -470m against DKK -253m in the first quarter of 2007. Net interest was DKK -300m against DKK -257m in the same period of 2007, and can be attributed to higher interest rates and a higher average level of net interest-bearing debt. Other net financial items were DKK -170m (DKK 4m in the first quarter of 2007). This change is due in particular to part of the premium on currency options acquired to hedge exposure to GBP in connection with the acquisition of part of S&N's activities being expensed (DKK -104m). Consolidated profit was DKK -87m against DKK 86m in the same period of 2007. Minority interests' share of this was DKK 42m, which is on a par with the first quarter of 2007. Carlsberg's share was DKK -129m against DKK 45m in the same period of 2007. BALANCE SHEET At 31 March 2008 Carlsberg had total assets of DKK 62,759m, an increase of DKK 3,337m compared with 31 March 2007. Assets Intangible assets totalled DKK 21,126m against DKK 21,320m at 31 March 2007. Property, plant and equipment totalled DKK 22,245m (DKK 20,778m at 31 March 2007). This increase primarily reflects particularly high capital expenditure as a result of capacity expansions in the growth markets, and investments in Western Europe in connection with capacity efficiency projects in Denmark and Italy. The investments are in line with previously adopted plans. Other non-current assets amounted to DKK 3,024m (DKK 3,165m at 31 March 2007). Current assets rose by DKK 2,244m to a total of DKK 16,331m (DKK 14,087m at 31 March 2007), i.a. as a result of dividends receivable and a higher level of activity. Liabilities Total equity was DKK 18,570m, of which DKK 1,298m can be attributed to minority interests and DKK 17,272m to shareholders in Carlsberg A/S. www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 12 of 28 Besides the profit for the quarter (DKK -129m), the change in equity before minority interests was mainly due to currency translation and value adjustments (DKK -963m), and tax on changes in equity (DKK 191m). Dividends to shareholders and minority interests reduced equity by DKK 453m. Value adjustments mainly concern currency options concluded to hedge the exposure to GBP related to the S&N transaction. The currency options were settled in April 2008, after which forward contracts were concluded for the purchase of GBP 5.5bn to a total weighted average exchange rate (DKK/GBP) of 945.79 also to hedge the exposure to GBP related to the S&N transaction. Value adjustment of the hedging element of both currency options and forward contracts has been recognised in equity. Total liabilities were DKK 44,189m (DKK 40,815m at 31 March 2007). CASH FLOW AND INTEREST-BEARING DEBT Cash flow from operating activities was DKK -688m against DKK -409m in the first quarter of 2007. Operating profit before depreciation and amortisation was DKK 1,086m, on a par with the same period of 2007. Working capital increased by DKK 1,072m (DKK 787m in the first quarter of 2007), primarily due to the higher level of activity, but will reverse back. Interest etc. paid was DKK -521m against DKK -274m in the same period of last year. Cash flow from investing activities was DKK -2,096m against DKK -790m in the first quarter of 2007. The difference of DKK -1,306m can essentially be attributed to an increase in operational investments of DKK 455m plus prepayments and hedging instruments relating to the acquired activities of S&N. The increase in - and the furthermore extraordinarily high level of - operational investments can be attributed to capacity expansions and brewery constructions in BBH (Russia, Ukraine and Uzbekistan) as well as capacity efficiency projects in Denmark and Italy as a result of brewery closures, all of which are in large part now completed. Other activities (real estate and assets under construction) contributed DKK -78m (DKK -130m in the first quarter of 2007). After this, free cash flow was DKK -2,784m against DKK -1,199m in the first quarter of 2007. This includes payments of DKK 854m in connection with the acquisition of assets from S&N. Net interest-bearing debt was DKK 22.7bn at 31 March 2008 against DKK 19.7bn at year-end 2007, an increase of approx. DKK 3bn. This development essentially reflects the development in free cash flow, payment of dividends to shareholders in Carlsberg A/S, currency translation adjustment of debt (DKK -386m), and a change in interest- bearing lending of DKK -321m. www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 13 of 28 In March the consortium banks - BNP Paribas, Danske Bank, Lehman Brothers International (Europe) and Nordea Bank - announced that borrowing facilities of GBP 2,772m taken up by Carlsberg in connection with the acquisition of activities of Scottish & Newcastle had been successfully syndicated to a number of banks. EARNINGS EXPECTATIONS As previously stated Carlsberg plans to fund part of the acquisition price by a capital increase / rights issue. Carlsberg is prevented from providing guidance as it has traditionally done due to the future Rights Issue. Carlsberg will update its earnings expectations in connection with publication of the first ordinary financial statement following the completion of the Rights Issue. Financial targets will be communicated at the same time. The financial targets will relate to the new segmentation of Carlsberg's business for accounting purposes. FINANCIAL CALENDAR FOR THE FINANCIAL YEAR 2008 The financial year follows the calendar year, and the following schedule has been set: 5 August 2008 Interim results for Q2 2008 5 November 2008 Interim results for Q3 2008 Carlsberg's communication with investors, analysts and the press is subject to special restrictions during a four-week period prior to the publication of quarterly and annual financial statements. DISCLAIMER The forward-looking statements, including forecasts on sales and earnings performance, reflect management's current expectations based on information available at the date of this document, and are subject to risks and uncertainty. Such statements are made on the basis of assumptions and expectations which the Company believes to be reasonable at this time, but which may prove to be erroneous. Many factors, some of which will be beyond management's control, may cause actual developments to differ materially from the expectations expressed. Such factors include, but are not limited to, economic and political uncertainty (including interest rates and exchange rates), financial and regulatory developments, demand for the Group's products, competition from other breweries, the availability and pricing of raw materials and packaging materials, price reductions resulting from market-driven price reductions, market acceptance of new products, launches of rival products and other unforeseen factors. Should one or more of these risks or uncertainties materialise, or should any underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 14 of 28 Carlsberg assumes no obligation to update or revise such forward-looking statements or to update the reasons for which actual results could differ materially from those anticipated in such forward-looking statements except when required by law. www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 15 of 28 MANAGEMENT STATEMENT The Board of Directors and the Executive Board have discussed and approved the interim report of the Carlsberg Group for the period 1 January - 31 March 2008. The interim report is unaudited and has been prepared in accordance with IAS 34 Interim Financial Reporting, as adopted by the EU, and additional Danish interim reporting requirements for listed companies. We consider the accounting policies used to be appropriate. Accordingly, the interim report gives a true and fair view of the Carlsberg Group's assets, liabilities and financial position at 31 March 2008, and of the results of the Carlsberg Group's operations and cash flow for the period 1 January - 31 March 2008. Copenhagen, 7 May 2008 Executive Board of Carlsberg A/S Jørgen Buhl Rasmussen Jørn P. Jensen Board of Directors of Carlsberg A/S Povl Krogsgaard-Larsen Jens Bigum Hans Andersen Chairman Deputy Chairman Flemming Besenbacher Hanne Buch-Larsen Henning Dyremose Niels Kærgård Axel Michelsen Erik Dedenroth Olsen Bent Ole Petersen Jess Søderberg Per Øhrgaard Appendix 1 Segment reporting by region (beverages) Appendix 2 Beverages and other activities Appendix 3 Segment reporting by quarter Appendix 4 Income statement Appendix 5 Special items Appendix 6 Balance sheet Appendix 7 Statement of recognised income and expenses and changes in equity Cash flow statement Appendix 8 Appendix 9 Net interest-bearing debt Appendix 10 Purchase of enterprises after the end of the quarter This statement is available in Danish and English. In the event of any discrepancy between the two versions, the Danish version shall prevail. www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 16 of 28 Carlsberg is one of the leading brewery groups in the world, with a large portfolio of beer and soft drinks brands. Its flagship brand - Carlsberg - is one of the fastest-growing and best-known beer brands in the world. More than 30,000 people work for Carlsberg in 48 countries, and its products are sold in more than 150 markets. In 2007 Carlsberg sold more than 115 million hectolitres of beer, which is about 95 million bottles of beer a day. Find out more at www.carlsberggroup.com. www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 17 of 28 APPENDIX 1 (PAGE 1/2) Segment reporting by region (beverages) DKK million Q1 Q1 2008 2007 2007 Beer sales (pro rata, million hl) Western Europe 5,6 5,7 28,5 Baltic Beverages Holding (BBH) 5,9 5,4 29,1 Eastern Europe (excl. BBH) 2,8 2,7 14,8 Asia 2,5 2,2 9,6 Total 16,8 16,0 82,0 Net revenue (DKK million) Western Europe 5.658 5.645 27.499 Baltic Beverages Holding (BBH) 2.117 1.832 10.435 Eastern Europe (excl. BBH) 939 732 4.267 Asia 727 634 2.535 Not allocated -5 20 14 Beverages, total 9.436 8.863 44.750 Net revenue (% of total) Western Europe 60,0 63,7 61,5 Baltic Beverages Holding (BBH) 22,4 20,7 23,3 Eastern Europe (excl. BBH) 10,0 8,2 9,5 Asia 7,7 7,2 5,7 Not allocated -0,1 0,2 - Beverages, total 100,0 100,0 100,0 Operating profit before special items (DKK million) Western Europe 129 197 2.738 Baltic Beverages Holding (BBH) 295 333 2.338 Eastern Europe (excl. BBH) - 5 477 Asia 119 82 330 Not allocated -162 -214 -882 Beverages, total 381 403 5.001 Operating profit margin (%) Western Europe 2,3 3,5 10,0 Baltic Beverages Holding (BBH) 13,9 18,2 22,4 Eastern Europe (excl. BBH) - 0,7 11,2 Asia 16,4 13,0 13,0 Not allocated … … … Beverages, total 4,0 4,5 11,2 www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 18 of 28 APPENDIX 1 (PAGE 2/2) Segment reporting by region (beverages) DKK million Q1 Q1 2008 2007 2007 Depreciation and amortisation (DKK million) Western Europe 366 380 1.551 Baltic Beverages Holding (BBH) 176 146 642 Eastern Europe (excl. BBH) 107 93 405 Asia 32 31 132 Not allocated 14 36 114 Beverages, total 695 686 2.844 Invested capital, period-end million) Western Europe 16.925 17.429 16.152 Baltic Beverages Holding (BBH) 8.820 7.740 8.987 Eastern Europe (excl. BBH) 4.240 3.985 4.248 Asia 2.954 2.773 3.033 Not allocated 494 652 641 Beverages, total 33.433 32.579 33.061 Return on average invested capital, ROIC (%) (running 12 months) Western Europe 15,8 14,5 16,0 Baltic Beverages Holding (BBH) 27,6 28,1 29,1 Eastern Europe (excl. BBH) 11,0 5,3 11,3 Asia 12,5 10,6 11,5 Not allocated … … … Beverages, total 15,0 13,3 15,2 www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 19 of 28 APPENDIX 2 Beverages and other activities DKK million Q1 Q1 2008 2007 Beverages Other Total Beverages Other Total activities activities Net revenue 9.436 - 9.436 8.863 - 8.863 Operating profit 381 7 388 403 -1 402 Special items, net -37 - -37 -31 - -31 Financial items, net -408 -62 -470 -193 -60 -253 Profit before tax -64 -55 -119 179 -61 118 Corporation tax 15 17 32 -47 15 -32 Consolidated profit -49 -38 -87 132 -46 86 Attributable to: Minority interests 41 1 42 40 1 41 Shareholders in Carlsberg A/S -90 -39 -129 92 -47 45 DKK million 2007 2007 Beverages Other Total Beverages Other Total activities activities Net revenue 44.750 - 44.750 8.863 - 8.863 Operating profit 5.001 261 5.262 403 -1 402 Special items, net -427 - -427 -31 - -31 Financial items, net -971 -230 -1.201 -193 -60 -253 Profit before tax 3.603 31 3.634 179 -61 118 Corporation tax -1.190 152 -1.038 -47 15 -32 Consolidated profit 2.413 183 2.596 132 -46 86 Attributable to: Minority interests 294 5 299 41 - 41 Shareholders in Carlsberg A/S 2.119 178 2.297 91 -46 45 www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 20 of 28 APPENDIX 3 Segment reporting by quarter DKK million Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2006 2006 2006 2007 2007 2007 2007 2008 Net revenue Western Europe 7.456 7.379 7.108 5.645 7.624 7.257 6.973 5.658 Baltic Beverages Holding (BBH) 2.320 2.552 1.805 1.832 3.073 3.269 2.261 2.117 Eastern Europe (excl. 1.033 1.010 827 732 1.284 1.289 962 939 Asia 630 590 562 634 650 654 597 727 Not allocated 5 16 -17 20 8 -39 25 -5 Beverages, total 11.444 11.547 10.285 8.863 12.639 12.430 10.818 9.436 Other activities - - - - - - - - Total 11.444 11.547 10.285 8.863 12.639 12.430 10.818 9.436 Operating profit Western Europe 894 986 529 197 969 918 654 129 Baltic Beverages Holding (BBH) 598 733 320 333 780 846 379 295 Eastern Europe (excl. 111 143 -44 5 187 233 52 - Asia 94 91 21 82 87 93 68 119 Not allocated -134 -152 -297 -214 -213 -136 -319 -162 Beverages, total 1.563 1.801 529 403 1.810 1.954 834 381 Other activities 76 9 -15 -1 44 124 94 7 Total 1.639 1.810 514 402 1.854 2.078 928 388 Special items, net 498 -152 -401 -31 -111 -42 -243 -37 Financial items, net -200 -200 -229 -253 -243 -277 -428 -470 Profit before tax 1.937 1.458 -116 118 1.500 1.759 257 -119 Corporation tax -571 -417 60 -32 -372 -461 -173 32 Consolidated profit 1.366 1.041 -56 86 1.128 1.298 84 -87 Attributable to: Minority interests 95 128 24 41 91 120 47 42 Shareholders in Carlsberg A/S 1.271 913 -80 45 1.037 1.178 37 -129 www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 21 of 28 APPENDIX 4 Income statement DKK million Q1 Q1 2007 2008 2007 Net revenue 9.436 8.863 44.750 Cost of sales -5.019 -4.597 -22.423 Gross profit 4.417 4.266 22.327 Sales and distribution expenses -3.304 -3.166 -14.528 Administrative expenses -784 -798 -3.123 Other operating income, net 47 88 485 Share of profit after tax, associates 12 12 101 Operating profit 388 402 5.262 Special items, -37 -31 -427 Operating profit 351 371 4.835 Financial income 158 165 651 Financial expenses -628 -418 -1.852 Profit before tax -119 118 3.634 Corporation tax 32 -32 -1.038 Consolidated profit -87 86 2.596 Attributable to: Minority interests 42 41 299 Shareholders in Carlsberg A/S -129 45 2.297 Earnings per share -1,7 0,6 30,1 Earnings per share, diluted -1,7 0,6 30,0 www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 22 of 28 APPENDIX 5 Special items DKK million Q1 Q1 2007 2008 2007 Special items, income Special items, costs Reversal of impairment (loss in 2007), Türk 12 - -100 Tuborg Impairment losses and expenses relating to withdrawal from the market for discount soft drinks in Denmark (2007: reversal of provision) - - 7 Termination benefits and assets in connection impa- rment of non-- urre- t with new production structure in Denmark (2007: reversal of -5 - 14 provision) Termination benefits and assets in connection impa- rment of non-- urre- t with new production structure at Sinebrychoff, Finland - -1 -3 Termination benefits etc. in connection with - - -190 Operational Excellence programmes Termination benefits and of Accounting Shared exp- Service nse- , est- bli- hme- t Center in Poland -5 -3 -29 Restructuring, Carl- -10 -7 -67 berg Ital- a Costs in connection with outsourcing of d- Carlsberg Sweden - - -26 s- r- b- t- o- , Restructuring, Rin- -9 - - nes Other restructuring costs e- -20 -20 -33 c- , o- h- r e- t- t- es Total -37 -31 -427 Special items, net -37 -31 -427 www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 23 of 28 APPENDIX 6 Balance sheet DKK million 31 Mar. 31 Mar. 31 Dec. 2008 2007 2007 Assets Intangible assets 21.126 21.320 21.205 Property, plant and equipment 22.245 20.778 22.109 Financial assets 3.024 3.165 2.965 Total non-current 46.395 45.263 46.279 Inventories and trade receivables 10.500 9.407 10.159 Other receivables etc. 3.592 1.993 2.499 Cash and cash equivalents 2.239 2.687 2.249 Total current assets 16.331 14.087 14.907 Assets held for sale 33 72 34 Total assets 62.759 59.422 61.220 Equity and liabilities Equity, shareholders in Carlsberg A/S 17.272 17.135 18.621 Minority interests 1.298 1.472 1.323 Total equity 18.570 18.607 19.944 Borrowings 22.086 18.404 19.385 Deferred tax, retirement benefit obligations etc. 4.574 4.895 4.680 Total non-current 26.660 23.299 24.065 Borrowings 4.390 6.373 3.869 Trade payables 5.469 4.489 5.833 Other current liabilities 7.670 6.653 7.509 Total current liabilities 17.529 17.515 17.211 Liabilities associated with assets held for sale - 1 - Total equity and liabilities 62.759 59.422 61.220 www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 APPENDIX 7 (PAGE 1/2) 7 May 2008 Page 24 of 28 Statement of recognised income and expenses 3 mths 2008 DKK million Shareholders in Minority Total Carlsberg A/S interests total Profit for the period -129 42 -87 Foreign exchange adjustments: Foreign entities -304 -57 -361 Value adjustments: Hedging instruments -631 - -631 Securities - - - Securities, -18 -5 -23 Retirement benefit -10 - -10 obligations Other adjustments: Share-based payment 5 - 5 Other -2 - -2 Tax on changes in equity 191 - 191 Net amount recognised directly equity -769 -62 -831 Total recognised income and expenses -898 -20 -918 3 mths 2007 DKK million Shareholders in Minority Total Carlsberg A/S interests total Profit for the period 45 41 86 Foreign exchange adjustments: Foreign entities -45 2 -43 Value adjustments: Hedging instruments 48 - 48 Securities -2 - -2 Securities, - - - Retirement benefit -8 - -8 obligations Other adjustments: Share-based payment 3 - 3 Other - - - Tax on changes in equity -11 - -11 Net amount recognised directly equity -15 2 -13 Total recognised income and expenses 30 43 73 www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 25 of 28 APPENDIX 7 (PAGE 2/2) Statement of changes in equity 31 March 2008 Shareholders in Carlsberg A/S DKK Share Retained Total capital Minority Total equity million capital earnings/ and and inte- ests reserves reserves Equity at 1 1.526 17.095 18.621 1.323 19.944 January 2008 Total -898 -898 -20 -918 recognised income and expenses period Acquisitio- - 7 7 7 - 7 /disposal of treasury shares Dividends - -458 -458 5 -453 paid to shareholde- s Acquisition - - - - -10 -10 of Total - -1.349 -1.349 -25 - 1.374 changes in equity Equity at 1.526 15.746 17.272 1.29818.570 31 March 2008 31 March 2007 Shareholders in Carlsberg A/S DKK Share Retained Total capital Minority Total equity million capital earnings/ and and inte- ests reserves reserves Equity at 1 1.526 16.071 17.597 1.390 18.987 January 2007 Total - 30 30 30 43 73 recognised income and expenses period Acquisitio- - -32 -32 -32 - -32 /disposal of treasury shares etc. Dividends - -458 -458 -19 -477 paid to shareholde- s Acquisition - - - - 58 58 of Other - -2 -2 -2 - -2 Total - -462 -462 82 -380 changes in equity Equity at 1.526 15.609 17.135 1.47218.607 31 March 2007 www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 26 of 28 APPENDIX 8 Cash flow statement D- - - 2007 K 1 1 m- l- i- n - - - - - - - - 2- - - - - - - - - - 08 - - - - - - - - - - 8 8 8 8 8 8 8 8 7 O- bef- - - - - - - - - 3- - 5.262 e- re - - - - - - - - 8 - a- spe- 8 8 8 8 8 8 8 8 2 i- ial g p- o- it Adjus- - - - - - - - - 6- - 2.872 ment - - - - - - - - 8 - for 8 8 8 8 8 8 8 8 9 depre- iatio- , - los- - es - - - - - - - t O- bef- - a- amor- am- am- a- a- amor- am- amo- a- amor- amor- - 1- 8.134 e- re - o- isat- rt- rt- o- o- isat- rt- tis- o- isat- isat- - 0- a- dep- - t- on sa- sa- t- t- on sa- tion t- on on - 1 i- eci- - s- and ion ion s- s- and ion and s- and and - g tio- - t- and and t- t- and t- 6 p- , - on on on on o- - a- a- a- a- it - d d d d - - - n - - d - los- - es - - - - - - - t Adjus- - - -403 ment 9 - for 2 other non-c- sh items Change- - - - - - - -1.- - -230 in - - - - - - - 72 - worki- - - - - - - - - g - - - - - - - 7 capit- - - - - - - - l 2 2 2 2 2 2 2 Restr- - - - - - - - - -- - -379 cturi- - - - - - - - - 1 - g 1 1 1 1 1 1 1 1 - costs 0 paid Inter- - - 187 st 4 2 etc. recei- ed I- - - - - - - - - -- - -1.507 t- - - - - - - - - 21 - r- - - - - - - - - - st 1 1 1 1 1 1 1 1 4 Corpo- - - - - - - - - -- - -965 ation - - - - - - - - 55 - tax - - - - - - - - - paid 5 5 5 5 5 5 5 5 9 Cash - - - - - - - - -- - 4.837 flow - - - - - - - - 88 - from - - - - - - - - - opera- 8 8 8 8 8 8 8 8 9 ing A- prop- pr- property, plant prop- property, plant and proper- property, plant - - -4.929 q- rty, pe- and equipment and rty, equipment and y, and equipment and- - i- plant ty, plant plant - - i- and pl- and and - 3 i- equi- nt equi- equipm- - n ment and ment nt and 2 ofand eq- and ip- ent and - - - - - - - - - e - - - - - s Disposal of property, plant and equipment and - - 351 8 - 0 - - - - - - - - - e - - - - - s Change- - - - - - - - -- - -143 in - - - - - - - - 04 - trade - - - - - - - - 0 loans 4 4 4 4 4 4 4 4 Total - - - - - - - -1.- - -4.721 opera- - - - - - - - 08 - ional - - - - - - - - inves- - - - - - - - 3 ments - - - - - - - 8 8 8 8 8 8 8 Aquis- - - - - - - - - -- - -179 tion - - - - - - - - 25 - and - - - - - - - - 2 dispo- 5 5 5 5 5 5 5 5 al A- fin- - - -43 u- nci- 8 - s- l 1 t- on of Dispo- - - 37 al of 5 5 finan- ial C- rec- - - -86 a- iva- 3 - geles 6 in f- n- n- i- l D- 2 - 127 v- 5 d- n- s r- c- i- ed Other - - - - - - - - -- - - inves- - - - - - - - - 7 ing 7 7 7 7 7 7 7 7 activ- es Total - - - - - - - - -- - -144 finan- - - - - - - - - 10 - ial - - - - - - - - 3 inves- 0 0 0 0 0 0 0 0 ments O- in in in property, in in property, plant in in property, - - -667 h- prop- p- plant and pro- and equipment prope- plant and - - r rty, o- equipment ert- ty, equipment - - i- plant e- , plant 8 8 v- and t- pla- and s- equi- , t equip- m- ment p- and ent n- a- equ- s t pme- a- t d e- u- p- e- t Disposal of other property, plant and equipment - 8 605 0 Total - - - - - - - - -- - -62 other - - - - - - - - 8 - activ- 8 8 8 8 8 8 8 8 - ties1 0 Cash - - - - - - - -2.- - -4.927 flow - - - - - - - 96 - from - - - - - - - - inves- - - - - - - - 0 ing - - - - - - - 6 6 6 6 6 6 6 F- - - - - - - - -2.- -- -90 ee - - - - - - - 84 .- c- - - - - - - - 99 sh - - - - - - - f- - - - - - - - ow 4 4 4 4 4 4 4 Share- - - - - - - - - -- - -508 olders- - - - - - - - 51 - in - - - - - - - - - Carls- 1 1 1 1 1 1 1 1 0 erg A/S M- - - - - - - - - -- - -451 n- - - - - - - - - 6 - r- 6 6 6 6 6 6 6 6 3 ty i- t- r- s- s E- - - - - - - - 3.2- 1- 775 t- - - - - - - - 2 8- r- - - - - - - - 6 al - - - - - - - f- 2 2 2 2 2 2 2 n- n- i- g Cash - - - - - - - 2.7- 1- -184 flow - - - - - - - 5 3- from - - - - - - - 3 finan- - - - - - - - ing 5 5 5 5 5 5 5 N- - - - - - - - - -- - -274 t - - - - - - - - 9 - c- 9 9 9 9 9 9 9 9 4 sh f- ow Cash - at at at at at at at at at at at at - 1- 1.708 and t b- begi- be- be- b- b- begi- begi- beg- b- begi- begi- - 7- cash - g- ning in- in- g- g- ning ning nni- g- ning ning - 8 equiv- - n- of ing ing n- n- of of g of n- of of - lents - i- peri- of of i- i- peri- peri- per- i- peri- peri- 1 - g d pe- pe- g g d d od g d d - of iod iod of of of - p- p- p- p- - r- r- r- r- - od od od od g - f - - - - - d Curre- - - - - - - - - -- 8 -83 cy - - - - - - - - 2 trans- 2 2 2 2 2 2 2 2 ation adjus- ment s Cash - - - - - - - 1.3- 1- 1.351 and - - - - - - - 0 8- cash - - - - - - - 0 equiv- - - - - - - - lents 0 0 0 0 0 0 0 1- cov- - - - - u- - - u- u- - un- se- - r - - - - d- - - d- d- - er ar- - real- - - - r - - r r - co- te - est- - - - - c- - - c- c- - st- fr- rte r r r r n- r r n- n- r uc- m - and - - - - t- - - t- t- - io- - ass- - - - - u- - - u- u- - , - ts - - - - t- - - t- t- - - - - - - o- - - o- o- - - - - - - , - - , , - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - s - - - - - - - - - - - - - - - - - - - - - , , , , , , , b- inc- - of of of of of of of of of of of of v- udi- f c- cons- co- co- c- c- cons- co- con- c- cons- cons- r- g - n- ruct- st- st- n- n- ruct- st- tru- n- ruct- ruct- gecos- - t- on uc- uc- t- t- on uc- tion t- on on a- s - u- cont- ion ion u- u- cont- ion con- u- cont- cont- t- - t- act co- co- t- t- act co- ract t- act act v- - on s. tr- tr- on on s. tr- s. on s. s. t- - c- ct ct c- c- ct c- e- - n- s. s. n- n- s. n- , - r- r- r- r- - ct ct ct ct - s. s. s. s. - n - - - - - - - t - . www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 27 of 28 APPENDIX 9 Net interest-bearing debt DKK million Q1 Q1 2007 2008 2007 Net interest-bearing debt Non-current borrowings 22.086 18.404 19.385 Current borrowings 4.390 6.373 3.869 Gross interest-bearing debt 26.476 24.777 23.254 Cash and cash equivalents -2.239 -2.687 -2.249 Loans to associates -717 -32 -28 On-trade loans -1.577 -1.681 -1.627 less non-interest-bearing 781 872 821 Other receivables -1.027 -900 -1.391 less non-interest-bearing 955 826 946 Net interest-bearing debt 22.652 21.175 19.726 Changes in net interest-bearing debt: Net interest-bearing debt at beginning 19.726 19.229 19.229 of period Cash flow from operating activities 688 409 -4.837 Cash flow from investing activit ies 2.096 790 4.927 Dividend to shareholders and minority 453 477 685 interests Acquisition of minority interests 70 53 69 Acquisition/disposal - -7 32 74 f - - - - - - - y - - - - - s Acquisition of 1 38 54 Change in interest-bearing -321 157 -209 Effects of currency translation -386 -110 -325 Other 332 100 59 Total change 2.926 1.946 497 Net interest-bearing end of period 22.652 21.175 19.726 www.carlsberggroup.com COMPANY ANNOUNCEMENT 16/2008 7 May 2008 Page 28 of 28 APPENDIX 10 Purchase of entities after the end of the quarter On 28 April 2008 Carlsberg and Heineken N.V. (together "the Consortium") completed the acquisition of S&N at a cash price of GBP 8 per share in S&N. The Consortium will divide S&N's assets such that Carlsberg acquires the following enterprises and assets at a value which on January 25, 2008 was calculated at approx. GBP 5.8bn (DKK 58.2bn): 1) the remaining 50% of BBH which the Carlsberg Group did not already own, 2) S&N's French enterprises, including Brasseries Kronenbourg, which is the leading brewery in France, and the global rights to the Kronenbourg brand, 3) the global rights to the Grimbergen brand, 4) Mythos, the second-largest brewery in Greece, 5) an ownership interest of 17.5% in Chongqing Brewery Co. Ltd., China, and 6) a new joint venture in Vietnam. The total purchase price is currently expected to be approximately DKK 57bn including transaction costs. The uncertainty around the final total purchase price is primarily linked to changes in currently assumed net interest bearing debt as per 28 April 2008 according to the Consortium definitions. The net debt as per 28 April 2008 is assumed to be higher than on 25 January 2008 due to normal seasonal fluctuations and the currently assumed net debt is therefore also higher than assumed on 25 January 2008. However, Carlsberg has bought GBP 5.5bn to a weighted average rate of exchange of 945.79, that is 6% less than on January 25, 2008. After the end of the quarter, Carlsberg paid DKK 545m for a 16% shareholding in connection with the privatisation of the Vietnamese brewery Hanoi Beer & Beverage Corp. (Habeco). Carlsberg is also partnered with Habeco in southern Vietnam, where a greenfield brewery is under construction. The acquired entities and assets will be included in the consolidated financial statements with effect from the date of acquisition on the basis of the opening balance, in which all the acquired assets, liabilities and contingent liabilities are stated at fair value. In accordance with IFRS, the statement can be adjusted up to 12 months after the date of acquisition. The first preliminary indication of the opening balance sheet is expected to be disclosed in the interim report for the first half of 2008. www.carlsberggroup.com