Significant progress leads to further upward adjustment
• A positive trend on several of Carlsberg's markets combined with a continued
focus on innovation and optimisation of sales and marketing resources generated
total net revenue of DKK 21.5bn (DKK 19.3bn in the first half of 2006), an
increase of 12%. There was growth in all regions, with the greatest progress
made in Eastern Europe and Asia. In local currencies, net revenue climbed 13%.
• Operating profit rose by 31% to DKK 2,256m (DKK 1,722m in the first half of
2006). There was good organic growth in both Western and Eastern Europe,
particularly in BBH. The positive earnings performance is the result of
continued progress in sales plus rationalisations and cost savings within a
number of areas.
• The full-year outlook for operating profit is being increased by DKK 300m to
approx. DKK 5bn (DKK 4,046m in 2006), including organic earnings growth for
beverage activities of 18-20%. Net profit is now expected to be approx. DKK
2.2bn, an increase in the region of 15-20% on 2006 (DKK 1,884m).
Contacts:
Investors Mikael Bo Larsen +45 3327 1223
Media Jens Bekke +45 3327 1412
Carlsberg will present the financial statement at a conference call for
analysts and investors today at 9.30 (CET) / 8.30 (GMT). The conference call
will refer to a slide deck available at www.carlsberggroup.com.
KEY FIGURES AND FINANCIAL RATIOS
DKK million Q2
2007 Q2
2006 H1
2007 H1
2006 2006
Sales volumes (million hl)
Beer 33.6 28.8 56.0 47.1 100.7
Soft drinks 5.8 5.6 10.2 9.7 20.2
Income statement
Net revenue 12,639 11,444 21,502 19,251 41,083
Operating profit before special items 1,854 1,639 2,256 1,722 4,046
Special items, net -111 498 -142 393 -160
Consolidated profit 1,128 1,366 1,214 1,187 2,171
Attributable to:
Minority interests 91 95 132 135 287
Shareholders in Carlsberg A/S 1,037 1,271 1,082 1,052 1,884
Balance sheet
Total assets 61,922 61,176 58,451
Invested capital 44,941 43,375 43,160
Interest-bearing debt, net 20,530 20,628 19,229
Equity, shareholders in Carlsberg A/S 18,144 16,805 17,597
Cash flow
Cash flow from operating activities 2,052 2,030 1,643 1,091 4,470
Cash flow from investing activities -1,314 492 -2,104 1,600 65
Free cash flow 738 2,522 -461 2,691 4,535
Financial ratios
Operating margin % 14.7 14.3 10.5 8.9 9.8
Return on average invested capital (ROIC) % 10.3 8.7 9.2
Equity ratio % 29.3 27.5 30.1
Debt/equity ratio (financial gearing) x 1.1 1.2 1.1
Interest cover x 4.6 4.0 4.7
Stock market ratios
Earnings per share (EPS) DKK 13.6 16.6 14.2 13.8 24.7
Cash flow from operating activities per share
(CFPS) DKK 26.9 26.6 21.5 14.3 58.6
Free cash flow per share (FCFPS) DKK 9.7 33.1 -6.0 35.3 59.5
Share price (B-shares) DKK 667.0 421.8 561.0
Number of shares (period-end) 1,000 76,278 76,278 76,278 76,278 76,278
Number of shares (average, excl. treasury
shares) 1,000 76,266 76,262 76,265 76,262 76,265
BUSINESS DEVELOPMENT
Beer sales in the first half of 2007 totalled 39.8m hl (calculated pro rata),
an increase of 17% comprising 16% organic growth and 1% from acquisitions.
Progress was greatest in the part of the business which concentrates on the
growth markets in Eastern Europe, particularly the BBH countries, and in Asia,
but higher sales were achieved in Western Europe too.
The international brands Carlsberg and Tuborg continued to grow, achieving
volume increases of 6% and 24% respectively, the latter primarily as a result
of rising sales on BBH's markets in Russia and the Ukraine.
Net revenue rose by 12% to DKK 21,502m (DKK 19,251m in 2006). All the regions
contributed to this increase, particularly BBH, which achieved revenue growth
of 36%. Changes in the relative breakdown of revenue between the individual
regions led to a lower average selling price per hl beer.
Operating profit before special items climbed DKK 534m to DKK 2,256m (DKK
1,722m in 2006). The increase was broadly based across the regions with only
Asia posting lower earnings. The higher earnings elsewhere can be attributed to
increased volumes and ongoing implementation of the Excellence programmes,
including cost savings within logistics and administration.
Western Europe
DKK million Q2
2007 Q2
2006 Change
(%) H1
2007 H1
2006 Change (%) 2006
Beer sales (million hl) 8.0 7.8 +3 13.7 13.3 +3 28.2
Net revenue 7,624 7,456 +2 13,269 12,820 +3 27,307
Operating profit 969 894 +8 1,166 910 +28 2,425
Operating margin (%) 12.7 12.0 +0.7 8.8 7.1 +1.7 8.9
The beer markets in Western Europe showed a generally positive trend with
Carlsberg gaining market share on several of its key markets, including the
United Kingdom and the Nordic countries.
Carlsberg sold a total of 13.7m hl of beer (13.3m hl in the first half of
2006), an increase of 3%. Revenue also rose by 3% to DKK 13,269m, against DKK
12,820m in the first half of 2006. This trend was primarily driven by
increasing revenues in the Nordic countries, although there were also positive
contributions from the United Kingdom and Portugal.
In combination with the Commercial Excellence programme, which focuses on
optimising the utilisation of sales and marketing resources, continuous
innovation and the ongoing introduction of new products have had a positive
impact on average selling prices per hl beer. An increase of approx. 1% has
been achieved on the first half of 2006, thanks in part to an improved product
mix. The Operational Excellence programmes are also proceeding satisfactorily
and, despite rising sales, it has been possible to realise cost savings within
sales and distribution, and administration.
Operating profit was DKK 1,166m against DKK 910m in the first half of 2006, and
progress was realised on a broad front with positive contributions from every
country except Italy. The operating margin continued its upward trend, rising
by 0.7 percentage points to 12.7% in the second quarter, equivalent to an
average of 9.7% on a rolling 12-month basis.
Baltic Beverages Holding (50%)
DKK million Q2
2007 Q2
2006 Change
(%) H1
2007 H1
2006 Change (%) 2006
Beer sales (million hl) 8.6 6.7 +29 14.0 10.5 +33 23.4
Net revenue 3,073 2,320 +32 4,905 3,596 +36 7,953
Operating profit 780 598 +30 1,113 751 +48 1,804
Operating margin (%) 25.4 25.8 -0.4 22.7 20.9 +1.8 22.7
The Russian market continued its significant progress in the second quarter and
increased by 23% in the first half. This development can be attributed to mild
weather for a large part of the period as well as a continuing strong trend in
consumption, partly influenced by last year's supply problems for wine and
spirits.
The other BBH markets also showed a positive development, achieving volume
growth of 22% in the Ukraine, 20% in Kazakhstan and 5% in the Baltic States.
BBH achieved a 31% increase in total volume, while the pro rata volume
increased by 33% to 14.0m hl as a result of continued strong growth for the
Tuborg brand.
Net revenue rose to DKK 4,905m against DKK 3,596m in the first half of 2006, an
increase of 36%, approx. 9% of which derives from the improved price/mix and
approx. -4% from exchange rate movements. Operating profit climbed 48% to DKK
1,113m (DKK 751m in the first half of 2006), resulting in an increase in
operating margin of 1.8 percentage points to 22.7%. Increasing costs for raw
materials and transport were partly compensated for by greater efficiency in
production and sales.
BBH continued to strengthen its market position in Russia in the second
quarter, achieving a market share of 37.6% for the first half of the year
(35.7% in the first half of 2006). Progress remains broadly based, driven by
the Baltika, Tuborg (+106%) and Bolshay Kruzka brands, and the fact that
Baltika is now a single, fully integrated organisation operating across all
functions.
The positive trend in the Baltic States continued, thanks to a successful
product strategy with an increasing focus on the premium segment and other
beverages. The re-launch of Slavutich in the Ukraine was well received, and the
long-term turnaround is proceeding to plan.
The market trend in Russia and all the other BBH markets has been positively
influenced in the first half by particularly good weather compared with
somewhat colder weather for large parts of the same period last year. The
supply problems with wine and spirits experienced in Russia in the second half
of 2006 are also considered to have brought about a change in consumption
patterns, resulting in a not insignificant impact on beer sales.
The trend on the Russian beer market is expected to remain favourable for the
rest of the year, although the extraordinary situation regarding wine and
spirits in the second half of 2006 will mean more subdued growth in beer sales
in the second half of this year. Based on this, the Russian market is now
expected to achieve growth of 11-13% in 2007. As before, BBH expects to be able
to achieve price increases at the low end of the local price development for
food and drink. The operating margin for the full year is expected to be around
23%.
Eastern Europe excl. BBH
DKK million Q2
2007 Q2
2006 Change
(%) H1 2007 H1
2006 Change (%) 2006
Beer sales (million hl) 4.5 4.0 +14 7.2 6.3 +15 13.3
Net revenue 1,284 1,033 +24 2,016 1,672 +21 3,509
Operating profit 187 111 +68 192 36 +430 135
Operating margin (%) 14.5 10.8 +3.8 9.5 2.2 +7.3 3.8
The positive trend on the East European markets continued, with high volume
growth in Poland, Bulgaria and other countries. Beer sales climbed 15% to 7.2m
hl, with significant contributions from the above-mentioned countries and
Serbia, while sales in Turkey were down.
Net revenue rose by 21% to DKK 2,016m and operating profit was DKK 192m against
DKK 36m in the first half of 2006. These figures include income of DKK 63m (in
the first quarter of 2007) from the sale of property in Poland. The positive
earnings performance is primarily related to a continued improvement in the
Polish activities following last year's change in the business model, with
progress for both the Carlsberg brand and local ones. The Turkish market was
stable, and investments are being made in new products, including the new local
beer Vole (launched in March 2007). In the South East Europe region, the trend
for both local brands and Tuborg has remained positive, with market share being
gained in all markets.
Asia
DKK million
Q2
2007 Q2
2006 Change
(%) H1
2007 H1
2006 Change
(%) 2006
Beer sales (million hl) 2.7 2.2 +23 4.9 3.8 +29 7.7
Net revenue 650 630 +3 1,284 1,147 +12 2,299
Operating profit 87 94 -7 169 220 -23 332
Operating margin (%) 13.3 14.9 -1.6 13.1 19.2 -6.1 14.4
The Asian business posted total sales of 4.9m hl beer (3.8m hl in the first
half of 2006), thus achieving a volume increase of 29% comprising 17% from
organic growth and 12% from acquisitions.
Net revenue rose to DKK 1,284m (DKK 1,147m in the same period last year), of
which DKK 50m derived from acquisitions. Operating profit was DKK 169m against
DKK 220m in the same period last year. Earnings performance was affected among
other things by lower earnings in Malaysia and a general increase in raw
material costs.
One of the reasons for the decline in volumes in Malaysia was a decision to
reduce inventories in the wholesale trade, but fiercer competition and costs
for security ink have also contributed to lower earnings.
There was progress on the growth markets in China and Vietnam, driven by
increased sales of both Carlsberg Chill in the Chinese premium segment and
local brands, including the new Dali Genuine Refresh in Yunnan province and the
Halida and Huda brands in Vietnam. The new brewery in Phu Bai in Vietnam is
expected to start production at the end of the year.
OTHER ACTIVITIES
Other activities include the development and sale of real estate, primarily at
former brewery sites, and operation of the Carlsberg Research Center. These
activities generated a profit of DKK 43m, against DKK 55m in the first half of
2006.
The closure of the brewery in Valby (Denmark) at the end of 2008 and the
subsequent development and sale of real estate will be a significant activity
for Carlsberg for a number of years to come. The Carlsberg site at Valby covers
a total of approx. 330,000 m2. As part of the preparations, an architectural
competition was held to explore development opportunities for the site. The
winning entry proposes total development of approx. 550,000 m2. Carlsberg
anticipates continuing to use 60-70,000 m2 of the site in Valby after
production is relocated. Drafting and approval of the public plan for the site
are expected to continue until the summer of 2008.
COMMENTS ON THE FINANCIAL STATEMENT
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 2006.
In 2007 the following interpretations relevant to the Carlsberg Group have been
adopted by the EU and implemented with effective date 1 January 2007:
o IFRIC 10 Interim Financial Reporting and Impairment
o IFRIC 11 IFRS 2: Group and Treasury Share Transactions.
Implementation of these interpretations has not led to any changes in the
accounting policies of the Carlsberg Group.
INCOME STATEMENT
Net revenue totalled DKK 21,502m in the first half of 2007 (DKK 19,251m in the
first half of 2006). This is an increase of 12% on the same period of 2006,
with approx. -1 percentage point of this resulting from exchange rate
movements. Progress was broadly based across all regions, though the biggest
contributions came from BBH and the Nordic countries. Organic growth was DKK
+2,445m (+13 percentage points).
Gross profit rose by 10% to DKK 10,758m (DKK 9,754m in the first half of 2006),
and the gross margin was 50.0%, a fall of 0.7 percentage points. The lower
gross margin is due partly to rising raw material prices, which have only been
offset to a certain extent by rising selling prices. Changes in product mix in
the form of a move towards more expensive packaging, especially on the Western
European markets, have also led to higher material costs.
Sales and distribution expenses grew by 5% to DKK 7,074m, while administrative
expenses grew by 9% to DKK 1,598m. This development can be attributed to a
continuing decrease in the cost level in Western Europe, although this is
balanced out by increased costs as a result of a higher level of activity on
the growth markets in BBH, Eastern Europe, and Asia.
Other operating income, net, was DKK 132m (DKK 159m in the first half of 2006),
Profit on the disposal of fixed assets was on a par with last year. Most
significantly, profit was up DKK 63m in Eastern Europe while profit in Western
Europe was down by the same amount compared with last year. The lower income
figure is partly the result of development costs relating to the Valby site.
The Group's share of the net profit of associates was DKK 38m, against DKK 20m
in 2006.
Operating profit before special items was DKK 2,256m, against DKK 1,722m in the
first half of 2006. Beverage activities generated a profit of DKK 2,213m, an
increase of DKK 546m. Progress was seen in Western Europe, BBH, and Eastern
Europe. Both rising volumes and revenue and a falling cost level contributed to
the positive development on the Western European market, while the significant
progress in BBH was driven by rising volumes and revenue and tight cost
control. In Eastern Europe, progress was primarily related to improved results
in Poland.The overall operating margin was 10.5%, which was 1.6 percentage
points higher than in the first half of 2006.
Net special items amounted to DKK -142m, against DKK 393m in the first half of
2006, and relate to redundancy costs, etc., in connection with Logistics
Excellence and restructuring measures implemented in previous years. The
comparative figure for 2006 included profit of DKK 616m on the sale of shares
in Hite Brewery Co. Ltd.
Net financial items amounted to DKK -496m, against DKK -428m in the first half
of 2006, with interest costs accounting for DKK -528m of this compared with DKK
-506m in 2006. This can be attributed to rising interest rates, which more than
balanced out the reduction in average net interest-bearing debt.
Consolidated profit was DKK 1,214m, against DKK 1,187m in the same period last
year.
Carlsberg's share of net profit was DKK 1,082m, against DKK 1,052m in the same
period last year.
CASH FLOW AND INTEREST-BEARING DEBT
Cash flow from operating activities totalled DKK 1,643m in the first half of
the year, against DKK 1,091m in the same period of 2006, an increase of DKK
552m. The major contributors to this development were the trend in operating
activities (DKK +550m), lower interest payments (DKK +226m) and lower
restructuring costs paid (DKK +88m), while changes in working capital reduced
cash flow by DKK 362m.
Cash flow from investing activities was DKK -2,104m, against DKK +1,600m in the
same period last year. The difference between the two periods was approx. DKK
3.7bn, which can largely be explained by the fact that the cash flow in the
first half of 2006 included proceeds from the sale of shares in Hite Brewery
Co. Ltd. (DKK 3,293m). Capital expenditure on beverage activities rose by DKK
575m to DKK 2,095m, which can mainly be attributed to a rather high level of
investment in BBH.
After this, free cash flow was DKK -461m, against DKK +2,691m last year.
Adjusted for the sale of Hite shares in 2006, free cash flow rose by DKK 141m
in the first half compared with the same period of 2006.
Cash and cash equivalents were DKK 1,193m at 30 June 2007, a reduction of DKK
616m on the same date last year.
Net interest-bearing debt amounted to DKK 20.5bn, an increase of DKK 1.3bn
compared with year-end 2006. Most of this increase relates to the development
in free cash flow and payment of dividends to shareholders in Carlsberg A/S.
EARNINGS EXPECTATIONS
Based on the positive development in the second quarter and continuing positive
outlooks for the rest of the year, Carlsberg is adjusting its earnings
expectations for 2007 upwards.
Net revenue is expected to rise by at least 10% (previously approx. 7%), and
operating profit is expected to rise to approx. DKK 5bn (previously approx. DKK
4.7bn). The expected figure for operating profit comprises approx. DKK 4.75bn
(previously approx. DKK 4.5bn) from beverage activities and approx. DKK 250m
from other activities (previous expectations approx. DKK 200m).
This is the second time this year that Carlsberg has adjusted its expectations
for beverage activities upwards, and operating profit from this is expected to
achieve organic growth of 18-20%, compared with the figure of DKK 3,997m for
2006. Progress is expected in Western Europe, BBH and the rest of Eastern
Europe. The earnings expectations also incorporate significant central costs
(the “not distributed” segment) for marketing and standardisation of processes,
procedures, IT systems etc. to support essential ongoing productivity
improvements within all areas of the business.
The most recent estimate of the financial consequences of agreements entered
into concerning delivery of properties/flats at Tuborg Syd is that this will
mean investments of approx. DKK 340m, approx. DKK 250m and approx. DKK 110m in
the second half of 2007 and in 2008 and 2009 respectively, while sales proceeds
will be approx. DKK 550m, approx. DKK 1bn and approx. DKK 350m. Selling profits
or new rental income in the second half of 2007 and in 2008 and 2009 are
expected to be approx. DKK 250m, approx. DKK 400m and approx. DKK 100m
respectively. Approx. 60,000 m2 of housing, approx. 9,000 m2 of commercial
property and approx. DKK 10,000 m2 of public buildings remain to be constructed
and sold on the Tuborg site.
Other activities (profit from sale of real estate less costs of operation of
the Carlsberg Research Center etc.) are expected to contribute approx. DKK 250m
to operating profit in 2007.
Additional restructuring costs etc. as a result of an increase in termination
benefits etc. relating to restructuring projects in Western Europe mean that
special items in 2007 are now expected to be approx. DKK -400m.
Financial expenses are still expected to be somewhat higher than in 2006,
primarily because other financial items (translation adjustments etc.) totalled
DKK +172m in 2006. At present other financial items are expected to be slightly
negative for 2007. Interest costs in 2007 are also expected to be higher than
in 2006, which can be attributed to significant investment programmes in 2007,
cf. below, and interest rate rises.
At present the overall effective tax rate for 2007 is expected to be in the
region of 27%.
Minority interests are still expected to increase in 2007 as a result of an
expected positive trend at BBH.
Net profit is now expected to be approx. DKK 2.2bn, an increase in the region
of 15-20% compared with last year (DKK 1,884m).
Investments in real estate development, continued capacity expansion at BBH and
in connection with establishing a new production structure in Denmark, Finland,
Italy and other countries mean that total investments will be very high and,
taking 2007 in isolation, this will have a negative effect on free cash flow.
The above forward-looking statements, including the forecasts of future
revenue, profit and cash flow etc., reflect management's current expectations
and are subject to risks and uncertainty. Many factors, some of which will be
beyond management's control, may cause actual development to differ materially
from the expectations expressed. Such factors include - but are not limited to
- matters presented in previously published material from Carlsberg A/S, most
recently in the Annual Report for 2006.
MANAGEMENT CHANGES
Nils S. Andersen will be leaving his position as President and CEO of Carlsberg
A/S by mid-November 2007 to take up the position of President and CEO of A.P.
Møller - Mærsk A/S. The Board of Directors of Carlsberg has initiated the
process of recruiting a new President and CEO who, together with the rest of
management, can continue and develop the strategy in place.
FINANCIAL CALENDAR 2007
The financial year follows the calendar year, and the following schedule has
been set:
7 November 2007 Financial statement for Q3 2007
19 February 2008 Financial statement for 2007
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.
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 - 30 June 2007.
The interim report is unaudited and has been prepared in accordance with IAS 34
Interim Financial Reporting, as adopted by the EU, cf. Accounting Policies, 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 30 June 2007, and of the results of the
Carlsberg Group's operations and cash flow for the period 1 January - 30 June
2007.
Executive Board of Carlsberg A/S
Nils S. Andersen Jørn P. Jensen Jørgen Buhl Rasmussen
Board of Directors of Carlsberg A/S
Povl Krogsgaard-Larsen Jens Bigum Hans Andersen
Chairman Deputy Chairman
Flemming Besenbacher Søren Bjerre-Nielsen Hanne Buch-Larsen
Henning Dyremose Niels Kærgård Axel Michelsen
Erik Dedenroth Olsen Bent Ole Petersen 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
Appendix 8 Cash flow statement
Appendix 9 Net interest-bearing debt
This statement is available in Danish and English. In the event of any
discrepancy between the two versions, the Danish version shall prevail.
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 at 92 local production sites in 48 countries,
and its products are sold in more than 150 markets. In 2006 Carlsberg sold more
than 100 million hectolitres of beer, which is about 83 million bottles of beer
a day.
Find out more at www.carlsberggroup.com.
APPENDIX 1 (PAGE 1/2)
Segment reporting by region (beverages)
Q2
2007 Q2
2006 H1
2007 H1
2006 2006
Beer sales (pro rata, million hl)
Western Europe 8.0 7.8 13.7 13.3 28.2
Baltic Beverages Holding (BBH) 8.6 6.7 14.0 10.5 23.4
Eastern Europe (excl. BBH) 4.5 4.0 7.2 6.3 13.3
Asia 2.7 2.2 4.9 3.8 7.7
Total 23.8 20.7 39.8 33.9 72.6
Net revenue (DKK million)
Western Europe 7,624 7,456 13,269 12,820 27,307
Baltic Beverages Holding (BBH) 3,073 2,320 4,905 3,596 7,953
Eastern Europe (excl. BBH) 1,284 1,033 2,016 1,672 3,509
Asia 650 630 1,284 1,147 2,299
Not distributed 8 5 28 16 15
Beverages, total 12,639 11,444 21,502 19,251 41,083
Net revenue (% of total)
Western Europe 60.3 65.1 61.7 66.6 66.5
Baltic Beverages Holding (BBH) 24.3 20.3 22.8 18.7 19.4
Eastern Europe (excl. BBH) 10.2 9.0 9.4 8.7 8.5
Asia 5.1 5.5 6.0 6.0 5.6
Not distributed 0.1 0.1 0.1 0.0 0.0
Beverages, total 100.0 100.0 100.0 100.0 100.0
Operating profit before special items (DKK million)
Western Europe 969 894 1,166 910 2,425
Baltic Beverages Holding (BBH) 780 598 1,113 751 1,804
Eastern Europe (excl. BBH) 187 111 192 36 135
Asia 87 94 169 220 332
Not distributed -213 -134 -427 -250 -699
Beverages, total 1,810 1,563 2,213 1,667 3,997
Operating profit margin (%)
Western Europe 12.7 12.0 8.8 7.1 8.9
Baltic Beverages Holding (BBH) 25.4 25.8 22.7 20.9 22.7
Eastern Europe (excl. BBH) 14.5 10.8 9.5 2.2 3.8
Asia 13.3 14.9 13.1 19.2 14.4
Not distributed … … … … …
Beverages, total 14.3 13.7 10.3 8.7 9.7
APPENDIX 1 (PAGE 2/2)
Segment reporting by region (beverages)
Q2
2007 Q2
2006 H1
2007 H1
2006 2006
Depreciation and amortisation (DKK million)
Western Europe 377 400 757 793 1,667
Baltic Beverages Holding (BBH) 153 140 299 275 619
Eastern Europe (excl. BBH) 97 92 190 186 396
Asia 31 34 62 57 120
Not distributed 34 26 70 50 138
Beverages, total 692 692 1,378 1,361 2,940
Invested capital, period-end (DKK million)
Western Europe 16,594 18,052 16,767
Baltic Beverages Holding (BBH) 8,043 6,638 7,346
Eastern Europe (excl. BBH) 4,299 3,983 3,972
Asia 2,869 2,653 2,580
Not distributed 1,028 600 632
Beverages, total 32,833 31,926 31,297
Return on average invested capital, ROIC (%) (running 12 months)
Western Europe 15.3 11.6 13.3
Baltic Beverages Holding (BBH) 29.4 23.5 26.5
Eastern Europe (excl. BBH) 7.1 5.9 3.3
Asia 10.2 12.4 12.2
Not distributed … … …
Beverages, total 14.0 11.3 12.4
APPENDIX 2
Beverages and other activities
DKK million Q2
2007 Q2
2006
Beverages Other activities Total Beverages Other activities Total
Net revenue 12,639 - 12,639 11,444 - 11,444
Operating profit 1,810 44 1,854 1,563 76 1,639
Special items, net -111 - -111 498 - 498
Financial items, net -179 -64 -243 -200 - -200
Profit before tax 1,520 -20 1,500 1,861 76 1,937
Corporation tax -351 -21 -372 -564 -7 -571
Consolidated profit 1,169 -41 1,128 1,297 69 1,366
Attributable to:
Minority interests 90 1 91 95 - 95
Shareholders in Carlsberg A/S 1,079 -42 1,037 1,202 69 1,271
DKK million H1
2007 H1
2006
Beverages Other activities Total Beverages Other activities Total
Net revenue 21,502 - 21,502 19,251 - 19,251
Operating profit 2,213 43 2,256 1,667 55 1,722
Special items, net -142 - -142 393 - 393
Financial items, net -372 -124 -496 -373 -55 -428
Profit before tax 1,699 -81 1,618 1,687 - 1,687
Corporation tax -398 -6 -404 -515 15 -500
Consolidated profit 1,301 -87 1,214 1,172 15 1,187
Attributable to:
Minority interests 130 2 132 134 1 135
Shareholders in Carlsberg A/S 1,171 -89 1,082 1,038 14 1,052
APPENDIX 3
Segment reporting by quarter
DKK million Q3 2005 Q4
2005 Q1
2006 Q2 2006 Q3 2006 Q4
2006 Q1
2007 Q2
2007
Net revenue
Western Europe 7,159 6,898 5,364 7,456 7,379 7,108 5,645 7,624
Baltic Beverages Holding (BBH) 2,069 1,462 1,276 2,320 2,552 1,805 1,832 3,073
Eastern Europe (excl. BBH) 1,028 734 639 1,033 1,010 827 732 1,284
Asia 437 415 517 630 590 562 634 650
Not distributed 21 5 11 5 16 -17 20 8
Beverages, total 10,714 9,514 7,807 11,444 11,547 10,285 8,863 12,639
Other activities - - - - - - - -
Total 10,714 9,514 7,807 11,444 11,547 10,285 8,863 12,639
Operating profit
Western Europe 940 344 16 894 986 529 197 969
Baltic Beverages Holding (BBH) 501 247 153 598 733 320 333 780
Eastern Europe (excl. BBH) 124 93 -75 111 143 -44 5 187
Asia 101 95 126 94 91 21 82 87
Not distributed -100 -237 -116 -134 -152 -297 -214 -213
Beverages, total 1,566 542 104 1,563 1,801 529 403 1,810
Other activities 5 77 -21 76 9 -15 -1 44
Total 1,571 619 83 1,639 1,810 514 402 1,854
Special items, net -385 109 -105 498 -152 -401 -31 -111
Financial items, net -281 -341 -228 -200 -200 -229 -253 -243
Profit before tax 905 387 -250 1,937 1,458 -116 118 1,500
Corporation tax -315 -26 71 -571 -417 60 -32 -372
Consolidated profit 590 361 -179 1,366 1,041 -56 86 1,128
Attributable to:
Minority interests 111 44 40 95 128 24 41 91
Shareholders in Carlsberg A/S 479 317 -219 1,271 913 -80 45 1,037
APPENDIX 4
Income statement
DKK million Q2
2007 Q2
2006 H1
2007 H1
2006 2006
Net revenue 12,639 11,444 21,502 19,251 41,083
Cost of sales -6,147 -5,451 -10,744 -9,497 -20,151
Gross profit 6,492 5,993 10,758 9,754 20,932
Sales and distribution expenses -3,908 -3,750 -7,074 -6,743 -14,173
Administrative expenses -800 -723 -1,598 -1,468 -3,065
Other operating income, net 44 113 132 159 267
Share of profit after tax, associates 26 6 38 20 85
Operating profit before special items 1,854 1,639 2,256 1,722 4,046
Special items, net -111 498 -142 393 -160
Financial income 143 190 308 340 725
Financial expenses -386 -390 -804 -768 -1,582
Profit before tax 1,500 1,937 1,618 1,687 3,029
Corporation tax -372 -571 -404 -500 -858
Consolidated profit 1,128 1,366 1,214 1,187 2,171
Attributable to:
Minority interests 91 95 132 135 287
Shareholders in Carlsberg A/S 1,037 1,271 1,082 1,052 1,884
Earnings per share 13.6 16.6 14.2 13.8 24.7
Earnings per share, diluted 13.5 16.6 14.1 13.8 24.6
APPENDIX 5
Special items
DKK million H1
2007 H1
2006 2006
Special items, income 0 616 602
Special items, costs
Impairment of goodwill 0 -5 -224
Loss on disposal of activities etc. 0 -19 -21
Restructuring costs incl. associated impairments etc. -142 -199 -517
Total -142 -223 -762
Special items, net -142 393 -160
APPENDIX 6
Balance sheet
DKK million 30 June 2007 30 June 2006 31 Dec. 2006
Assets
Intangible assets 21,343 21,162 21,279
Property, plant and equipment 21,437 20,349 20,367
Financial assets 3,181 3,310 2,724
Total non-current assets 45,961 44,821 44,370
Inventories and trade receivables 11,310 11,361 9,328
Other receivables etc. 2,278 2,260 2,154
Cash and cash equivalents 2,310 2,496 2,490
Total current assets 15,898 16,117 13,972
Assets held for sale 63 238 109
Total assets 61,922 61,176 58,451
Equity and liabilities
Equity, shareholders in Carlsberg A/S 18,144 16,805 17,597
Minority interests 1,419 1,388 1,390
Total equity 19,563 18,193 18,987
Borrowings 16,899 19,092 16,241
Deferred tax, retirement benefit obligations etc. 4,909 4,692 4,851
Total non-current liabilities 21,808 23,784 21,092
Borrowings 6,870 5,223 6,556
Trade payables 5,873 5,607 5,147
Other current liabilities 7,808 8,364 6,668
Total current liabilities 20,551 19,194 18,371
Liabilities associated with assets held for sale 0 5 1
Total equity and liabilities 61,922 61,176 58,451
APPENDIX 7 (page 1/2)
Statement of recognised income and expenses
H1 2007
DKK million Share
holders in Carlsberg A/S, total Minority interests Total
Profit for the period 1,082 132 1,214
Currency translation adjustments:
Foreign entities -184 -14 -198
Value adjustments:
Hedging instruments 186 - 186
Securities 19 -1 18
Retirement benefit obligations -16 - -16
Other adjustments:
Share-based payment 9 - 9
Tax on changes in equity -50 2 -48
Net income recognised directly in equity
-36
-13
-49
Total recognised income and expenses
1,046
119
1,165
H1 2006
DKK million Share
holders in Carlsberg A/S, total Minority interests Total
Profit for the period 1,052 135 1,187
Currency translation adjustments:
Foreign entities -527 -57 -584
Value adjustments:
Hedging instruments 311 - 311
Securities -1,519 - -1,519
Retirement benefit obligations -16 - -16
Other adjustments:
Share-based payment 4 - 4
Other -11 -11 -22
Tax on changes in equity -71 - -71
Net income recognised directly in equity
-1,829
-68
-1,897
Total recognised income and expenses
-777
67
-710
APPENDIX 7 (PAGE 2/2)
Statement of changes in equity
2007
Shareholders in Carlsberg A/S
DKK million Share capital Retained earnings/
reserves Total capital and reserves Minority interests Total equity
Equity at 1 January 2007 1,526 16,071 17,597 1,390 18,987
Total recognised income and expenses for the period 1,046 1,046 119 1,165
Purchase/sale of treasury shares -40 -40 - -40
Dividends paid to shareholders -458 -458 -204 -662
Acquisition of minority interests and entities - - 114 114
Other -1 -1 - -1
Total changes in equity - 547 547 29 576
Equity at 30 June 2007 1,526 16,618 18,144 1,419 19,563
2006
Shareholders in Carlsberg A/S
DKK million Share capital Retained earnings/
reserves Total capital and reserves Minority interests Total equity
Equity at 1 January 2006 1,526 16,442 17,968 1,528 19,496
Total recognised income and expenses for the period - -777 -777 67 -710
Purchase/sale of treasury shares - -5 -5 - -5
Dividends paid to shareholders - -381 -381 -159 -540
Acquisition of minority interests and entities - - - -48 -48
Total changes in equity - -1,163 -1,163 -140 -1,303
Equity at 30 June 2006 1,526 15,279 16,805 1,388 18,193
APPENDIX 8
Cash flow statement
DKK million Q2
2007 Q2
2006 H1
2007 H1
2006 2006
Operating profit before special items 1,854 1,639 2,256 1,722 4,046
Adjustment for depreciation, amortisation and
impairment 697 696 1,386 1,370 2,989
Operating profit before depreciation, amortisation and
impairment 2,551 2,335 3,642 3,092 7,035
Adjustment for other non-cash items -62 -80 -144 -127 -173
Change in working capital 115 615 -672 -310 389
Restructuring costs paid -70 -98 -180 -268 -477
Interest etc. received 37 30 79 73 186
Interest etc. paid -264 -276 -538 -764 -1,512
Corporation tax paid -255 -496 -544 -605 -978
Cash flow from operating activities 2,052 2,030 1,643 1,091 4,470
Acquisition of property, plant and equipment, and intangible
assets -1,303 -917 -2,296 -1,587 -3,188
Disposal of property, plant and equipment, and intangible
assets 80 94 240 167 305
Change in on-trade loans -19 -47 -39 -100 -200
Total operating investments -1,242 -870 -2,095 -1,520 -3,083
Acquisition and divestment of entities, net -90 13 -142 -138 18
Acquisition of financial assets -14 -15 -25 -21 -82
Disposal of financial assets 2 1,426 47 1,427 1,494
Change in financial receivables1 14 -133 210 1,795 1,834
Dividends received 40 40 55 50 70
Total financial investments -48 1,331 145 3,113 3,334
Other investments in property etc. -228 -95 -366 -137 -371
Disposal of other property etc. 204 126 212 144 185
Total other activities2 -24 31 -154 7 -186
Cash flow from investing activities -1,314 492 -2,104 1,600 65
Free cash flow 738 2,522 -461 2,691 4,535
Shareholders in Carlsberg A/S -8 7 -498 -386 -397
Minority interests -160 -262 -233 -481 -701
External financing -1,164 -1,520 702 -1,871 -3,592
Cash flow from financing activities -1,332 -1,775 -29 -2,738 -4,690
Net cash flow -594 747 -490 -47 -155
Cash and cash equivalents at beginning of period 1,820 1,142 1,708 1,940 1,940
Currency translation adjustments -33 -80 -25 -84 -77
Cash and cash equivalents at period-end 1,193 1,809 1,193 1,809 1,708
1 Includes DKK 1,928m received on the sale of the shares in Hite Brewery Co.
Ltd. in 2006.
2 Other activities cover property and assets under construction, separate from
beverage activities, including costs of contract work in progress.
APPENDIX 9
Net interest-bearing debt
DKK million Q2
2007 Q2
2006 H1
2007 H1
2006 2006
Net interest-bearing debt is calculated as follows:
Non-current borrowings 16,899 19,092 16,241
Current borrowings 6,870 5,223 6,556
Gross interest-bearing debt 23,769 24,315 22,797
Cash and cash equivalents -2,310 -2,496 -2,490
Loans to associates -63 -253 -221
On-trade loans -1,675 -1,731 -1,711
less non-interest-bearing portion 882 939 927
Other receivables -999 -1,137 -857
less non-interest-bearing portion 925 991 784
Net interest-bearing debt 20,529 20,628 19,229
Changes in net interest-bearing debt:
Net interest-bearing debt at beginning of
period 21,175 22,776 19,229 20,753 20,753
Cash flow from operating activities -2,052 -2,030 -1,643 -1,091 -4,470
Cash flow from investing activities 1,314 -492 2,104 -1,600 -65
Dividend to shareholders and minority interests 184 149 661 540 529
Acquisition of minority interests -24 113 29 322 576
Purchase/sale of treasury shares 8 -7 40 5 16
Additions re acquisition of entities, net 22 141 60 141 146
Change in interest-bearing lending -16 -67 141 1,796 1,832
Currency translation effects 7 -45 -103 -258 -272
Other -89 90 11 20 184
Total change -646 -2,148 1,300 -125 -1,524
Net interest-bearing debt at period-end 20,529 20,628 20,529 20,628 19,229
