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.
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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.
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COMPANY ANNOUNCEMENT
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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)
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7 May 2008
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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.
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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.
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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
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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%).
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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
