Carlsberg A/S 100 Ny Carlsberg Vej Tel +45 3327 3300
1760 Copenhagen V Fax +45 3327 4701
CVR.no. 61056416 carlsberg@carlsberg.com
Company announcement 12/2009
4 November 2009
Page 1 of 29
Interim results as at 30 September 2009
Strong cash flow and operating profit growth despite
challenging markets
• Carlsberg delivered a strong set of results for the first nine months of 2009.
This was based
on detailed planning and superior execution across the Group overcoming the
ongoing challenging market environment. Organic operating profit growth for
the beverage activities was 27% and Group operating margin improved to 16.9%
(14.5% in 2008). This was driven by the intense focus on efficiency
improvements and value management. Combined with significant improvement in
working capital and reduced capital expenditures, free cash flow increased
substantially to DKK 6.1bn.
• Beer volumes increased by 6% to 88.9m hl. Organic beer volume declined by 5%
while net
acquisitions contributed 11%. The Asian business delivered high single-digit
organic volume growth whereas organic volumes declined in Eastern Europe and
Northern & Western Europe. Q3 beer volumes developed in line with the first
six months.
• Net revenue increased by 1% to DKK 45.8bn (DKK 45.4bn in 2008). Organic net
revenue
growth was flat. Pricing remains robust and price increases implemented in
2008 and 2009 combined with the value management initiatives have driven a
positive price effect of +5% year on year ('yoy'). The overall mix effect was
flat. Q3 net revenue was DKK 16.4bn with organic net revenue growth of -1%.
• In the first nine months Carlsberg launched several new products across all
regions and
initiated construction of breweries in Vietnam and India. Carlsberg gained
market shares in most markets in Eastern Europe and Asia with particularly
strong gains in the Ukraine and Russia, and maintained overall market share in
Northern & Western Europe.
• Operating profit increased to DKK 7,747m (DKK 6,592m in 2008). The beverage
activities
delivered strong organic operating profit growth of 27%. For Q3, Group
operating profit was DKK 3,304m (DKK 3,054m in Q3 2008) with 22% organic
growth. The Northern & Western European region accelerated organic profit
growth in Q3 as the sustainable impact from the accelerated efficiency
programmes materialises. The Eastern European and Asian businesses delivered
strong improvement throughout all nine months.
• Operating margin increased to 16.9% (14.5% in 2008). Q3 Group operating margin
was
20.2% (16.6% in Q3 2008).
www.carlsberggroup.com
Company announcement 12/2009
4 November 2009
Page 2 of 29
• Free cash flow improved to DKK 6.1bn driven by improved working capital,
higher profits and
lower capital expenditure.
• Net debt at the end of Q3 was DKK 38.5bn compared to DKK 44.2bn at the end of
2008.
• The integration of the S&N assets is on track and synergies are coming through
as expected.
Of the DKK 1.3bn synergy target around DKK 725m annualised savings have been
extracted as at 30 September 2009.
• The Russian market declined by around 10% in the first nine months of the year
and
Carlsberg expects the Russian market for the full-year to decline in line with
the first nine months. Carlsberg improved its Russian market share by 220bp to
40.9%.
• Carlsberg upgrades full-year target for free cash-flow, revises the target for
financial
leverage downwards and keeps earnings targets unchanged despite lower net
revenues:
• Net revenue of around DKK 59-60bn
• Operating profit of at least DKK 9bn
• Net profit of at least DKK 3.5bn
• Free cash flow of at least DKK 6.5bn
• Operating capital expenditure of less than DKK 3.5bn
• Net interest-bearing debt to EBITDA ratio less than 3x
• The overall challenging market environment will continue in 2010. One
challenge being the
Russian government's proposal of a significant beer excise duty increase in
2010 which is still being debated and where a decision is expected later this
year. If this proposal combined with a proposed moderate increase in spirit
excise duties is passed, it will clearly affect the beer market negatively.
The Group has done a thorough scenario-planning for 2010 and subsequent years
based on different assumptions on beer excise duty levels.
Commenting on the results, CEO Jorgen Buhl Rasmussen said: “We are very pleased
with the strong Q3 and nine months results that again demonstrate that our
efforts to drive sustainable efficiency improvements without losing top-line
focus have been successful and sufficient to off- set the impact from the
challenging markets. We were well-prepared going in to 2009 and remain
comfortable in our ability to deliver on our profit and cash flow targets for
the year. We are currently planning for an equally challenging 2010 and we will
be as prepared for 2010 as we were for 2009. Our focus will remain on growing
volume and value market share, improving efficiencies and reducing debt.”
Carlsberg will present the financial statements at a conference call for
analysts and investors today at 9.00 am CET (8.00 am GMT). The conference call
will refer to a slide deck, which will be available beforehand at
www.carlsberggroup.com.
Contacts:
Investor Relations: Peter Kondrup, +45 3327 1221
Media Relations: Jens Peter Skaarup, +45 3327 1417
www.carlsberggroup.com
Company announcement 12/2009
4 November 2009
Page 3 of 29
KEY FIGURES AND FINANCIAL RATIOS
DKK million Q3 Q3 9 mths 9
mths
2009 200 8 2009 200
2008
8
Total sales volumes (million hl)
Be 35 .8 3 6.6 98.7 9
126.8
er 7.9
Other 6 .2 6.1 17.0 1 6.9
22.3
beverages
In st at emen t st at emen t
co-
e
Net revenue 16, 357 18,443 45, 76645,420
59,944
Operating profit before special items 3,304 3,05 4 7,747 6,59
7,979
2
Sp it ems, - 180 - 169 - 371 -
- 1,641
eci 297
al
Financial items, net - 767 - 893 - 2,217 -
- 3,456
2,175
Corporation - 683 - 583 - 1,496 -
324
tax 1,210
Consolidated profit 1,674 1,40 9 3,663 2,91
3,206
0
Attributable
to:
Minori ty 1 83 188 4 44 403
575
inte rests
Sh are hol in Car in Car lsb er g A/S 1,4 91 1,22 1 3,219 2,50
2,631
der s lsb er g 7
A/S
Statement of financial position
Total assets 1 35,734 15
143,306
3,35 7
Invested 111,839 127,-
119,326
capital 95
Interest-bearing debt, net 38, 53346,323
44,156
Eq sh are hol der s sh are hol der s 5 3,5 5761,813
55,521
ui-
y ,
Statement of cash flows
Cash flow from operating activities 2,489 2,15 0 8,457 4,23
7,812
3
Cash flow from investing activities -4 73 - 1,498 - 2,341 - 55,
- 57,153
863
Free cash 2,016 652 6,116 - 51,
- 49,341
flow 630
Financi al
ratios
Operating % 2 0.2 1 6.6 16.9 1
13.3
margin 4.5
Return on average invested capital (ROIC) 7.8 9 .7
8 .2
Eq rat io % 43.1 4
42.4
ui-
3.6
y
Debt/equity ratio (financial gearing) 0.7 0 .7
0 .7
Interest x 3.5 3 .0
2 .3
cover
Stock market ratios*
Ea rnin gs per sh are ( EPS ) Cash flow from 9 .8 8.0 21.1 23.3
2 2.2
operating activities per share
- 1 6.3 1 4.1 55.4 3
65.8
- 9.4
K
(CFPS)
Free cash flow per share (FCFPS) 1 3.2 4 .3 40.1 -
- 415.4
480-
7
Sh pr ice (B- shar (B- shar es ) 3 69 398
171
are es )
Number of shares (period-end) 1152,542 152,554 152,-
152,554
42
52,
554
Numof (ave rage (ave rage , 1 52,547 15 2,55 3 152,551 10
118,778
ber , 7,40
5
shar es)
* Adjusted for bonus factor from rights issue in June 2008 in accordance with
IAS 33.
www.carlsberggroup.com
Company announcement 12/2009
4 November 2009
Page 4 of 29
BUSINESS DEVELOPMENT
In the challenging market environment during the first nine months of 2009
volumes have remained under pressure whilst there has been a positive price/mix
across most markets.
Organic beer volume growth for the Group was -5%. Including acquisitions beer
volumes increased 6% to 88.9m hl (83.6m hl in 2008). Q3 beer volumes declined
organically by 5%. Although volumes grew in a few Northern & Western European
markets in Q3, overall beer volumes declined in both the Eastern European and
the Northern & Western European regions. The Asian business continued to grow.
Pro rata volumes of other beverages were 15.2m hl (15.0m hl in 2008) for the
Group.
Net revenue increased 1% to DKK 45,766m (DKK 45,420m in 2008) driven by flat
organic growth (consisting of total volume growth -5%, price 5% and flat mix),
currency impact -8% and acquisition impact 9%. For Q3 the organic net revenue
growth was -1%.
The 5% price effect was driven by the continued focus on portfolio and value
management coupled with strong sales execution and the price increases
implemented both last year and during this year. A positive mix in Northern &
Western Europe and Asia was off-set by negative mix in Eastern Europe due to a
shift in channel and packaging mix and in Q3 also from a shift between brands.
The negative currency effect was mainly driven by weaker Eastern European
currencies.
As part of the efforts to drive revenue growth, the Group continues to build a
pipe-line of innovations to be launched in the coming years. Several product
launches have taken place during 2009, the most important in Northern & Western
Europe being the 1664 and Kronenbourg re-launches in France and in China the
launch of Carlsberg Light targeting the restaurant sector. We maintain a focused
marketing spend to support key brands and activities and have kept our overall
share-of-voice, while benefitting from lower media costs than last year.
Cost of sales per hl increased organically by approximately 2%. While Carlsberg
in Eastern Europe has benefitted from favourable raw material prices already
this year, the Northern & Western European and Asian businesses have been
affected negatively. Organic gross profit growth per hl was 7% (8% in Q3) with a
120bp organic gross profit margin improvement per hl for the nine months
(approximately 200bp improvement in Q3).
Group operating profit increased by 18% yoy to DKK 7,747m (DKK 6,592m in 2008).
Organic operating profit growth was 18%, currency impact was -12% and
acquisitions contributed 12%. Operating profit for the beverage activities was
DKK 7,835m (DKK 6,197m in 2008) with organic growth of 27% (14% in DKK). For Q3
organic operating profit growth for the Group was 22% with a 28% organic
operating profit growth for the beverage activities.
The main drivers behind the organic operating profit growth were the sustainable
efficiency improvements consisting of both long-term projects and accelerated
efficiency programmes, the synergies from the S&N acquisition, the positive
price impact, favourable raw material prices in Eastern Europe and our Value
Management initiatives. All three regions delivered strong organic
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Company announcement 12/2009
4 November 2009
Page 5 of 29
operating profit growth. Despite very challenging markets the Eastern European
region was the main contributor with 32% organic operating profit growth. The
Northern & Western Europe region delivered 13% organic operating profit growth
for the nine months with 27% organic profit growth for Q3 as the accelerated
efficiency improvements materialise. With 21% organic operating profit growth,
the Asian business continued its strong organic growth throughout the year.
Operating cash flow grew to DKK 8.5bn (DKK 4.2bn in 2008) and free cash flow
increased substantially to DKK 6.1bn (DKK -800m in 2008 when adjusted for the
S&N acquisition) driven by the efforts taken across all markets and functions to
strengthen cash flow and reduce debt. The improvement was driven by higher
profits, lower capital expenditure and a substantial working capital
improvement. Carlsberg initiated construction of a brewery in India and Vietnam
and will continue to invest in new capacity in markets where there are capacity
constrains and long-term growth opportunities. Net interest-bearing debt
declined to DKK 38.5bn as at 30 September compared to DKK 44.2bn at the end of
2008.
During the first nine months of the year several structural initiatives were
taken. The Norwegian Arendal brewery was sold, the Finnish Pori brewery was
closed, the German brewery Braunschweig was divested and Carlsberg will enter
into a distribution joint-venture with the Nordmann Group in Germany. In the
first nine months Carlsberg also increased its shareholding in its operation in
Kazakhstan and Uzbekistan and Carlsberg signed a MoU to increase the
shareholding in the Vietnamese Habeco brewery from 16.1% to up to 30%.
Profit and cash flow expectations
The key assumptions for this year's outlook are:
• Contracting beer markets in Northern & Western Europe
• A Russian market decline in line with the trend for the first nine months
• Continued implementation of cost reduction measures throughout the Group
Based on these assumptions, Carlsberg upgrades full-year target for free
cash-flow, revises the target for financial leverage downwards and keeps
earnings targets unchanged despite lower net revenues:
• Net revenue of around DKK 59-60bn
• Operating profit of at least DKK 9bn
• Net profit of at least DKK 3.5bn
• Free cash flow of at least DKK 6.5bn
• Operating capital expenditure of less than DKK 3.5bn
• Net interest-bearing debt to EBITDA ratio less than 3x
www.carlsberggroup.com
Company announcement 12/2009
4 November 2009
Page 6 of 29
NORTHERN & WESTERN EUROPE
DKK million Q3 Q3 Change 9 mths 9 mths Change
2009 2008 (%) 2009 2008 (%) 2008
Beer sales (million hl) 14.1 15.4 -8.4 38.8 38.9 -0.2 51.0
Net revenue 10,110 10, 804 -6. 4 28 ,015 28,2 13 -0. 7 37,1 28
Operating profit 1,700 1,40 1 21.3 3,5 80 3,1 06 15.3 3,9 53
Operating margin (%) 16.8 13.0 380bp 12.8 11.0 180bp 10.6
In Northern & Western Europe the declining market trend in the first six months
continued into Q3. The development of individual beer markets continues to
differ significantly with for instance market growth in Finland, flat Swedish,
Swiss and French markets and a continued almost double-digit decline in the
Baltics. Overall, the regional beer market for the nine months and Q3 declined
by approximately 5-6% compared to 2008.
Carlsberg organic beer volumes declined by 6% (-6% for Q3) with overall stable
market share for the region. Reported beer volumes were flat at 38.8m hl (38.9m
hl in 2008).
Net revenue per hl increased organically due to robust pricing across markets
coupled with the Group's strong focus on value management. These efforts
mitigated some of the negative volume impact. Organic net revenue development
was -1% for the region (flat in Q3). Net revenue for beer increased by 2% (-6%
volumes, 5% price, 1% mix, -4% currency and 6% from acquisitions).
Although gross profit margins for the region declined slightly for the nine
months due to higher input costs and a negative channel mix from on-trade to
off-trade, there was a yoy pick-up in gross margin in Q3 due to accelerated
production efficiencies. In absolute terms the higher input costs were more than
off-set by the higher organic net revenue per hl. Mix was positive or flat in
most Northern & Western European markets.
The re-launch in France of Kronenbourg and 1664 has been one of the most
important commercial activities in the region this year. Based on the
Milward-Brown tracking, we see a positive consumer impact from our marketing
campaigns and for the first time in several years, there is a clear
stabilisation in market shares of the two brands. Although it is still at an
early stage, the new marketing campaign, packaging and price points seem to have
been well-received by French consumers.
The UK business has done particularly well with volume growth and strong
earnings improvements throughout the year. The improvement is mainly driven by
value management and efficiency initiatives. The recent JD Wetherspoon supply
contract will strengthen the position in the on-trade channel. Carlsberg has
gained both volume and market share, and overall market share is now up by
approximately 70bp to 14.3%.
In Denmark the total beer market is still declining but Carlsberg grew market
share in beer in the first 9 months and delivered very satisfactory operating
profit growth due to positive price/mix
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Company announcement 12/2009
4 November 2009
Page 7 of 29
development and cost reductions. Also, the cider Somersby including line
extensions has proven very successful and continues to develop and drive
significant growth in the category.
In a Swiss market that declined modestly, Feldschlösschen has increased
profitability by growing overall market share and through successful value
management and efficiency improvement.
The Polish market has been challenging due to the economic recession, market
decline and down-trading. In the latter part of the period there was a
noticeable earnings improvement because of the efficiency improvement actions
taken earlier in the year.
Operating profit increased by 15% to DKK 3,580m (DKK 3,106m in 2008) with 13%
organic operating profit growth for the period. For Q3 operating profit growth
was 21% with 27% organic growth.
Excluding the business in the Baltics that has been particularly hurt by the
financial crisis organic operating profit growth would have been 17% (29% for
Q3).
Throughout the year the region has reported sequentially improving operating
margins due to the accelerated efficiency improvements initiated in the second
half of 2008 and at the beginning of 2009 which gradually during the year have
filtered into profits. The majority of the Northern & Western European markets
have delivered margin improvement for the first nine months. The improvement was
even more pronounced in Q3 as all markets in the region, except the Baltics,
delivered organic operating profit growth.
EASTERN EUROPE
DKK million Q3 Q3 Change 9 mths 9 mths Change
2009 2008 (%) 2009 2008 (%) 2008
Beer sales (million hl) 14.4 15.5 -7.6 40.2 35.9 11.8 46.8
Net revenue 5,135 6,66 1 -22 .9 14 ,442 14,5 21 -0. 5 19,1 37
Operating profit 1,550 1,63 7 -5. 3 4,1 97 3,3 10 26.8 4,1 09
Operating margin (%) 30.2 24.6 560bp 29.1 22.8 630bp 21.5
Total beer volumes in Eastern Europe increased by 12% while organic beer volumes
declined by 8%. Due to strong growth in Kvass in both the Ukraine and Russia,
total beverage volumes declined organically by only 6%. For Q3 organic beer
volume development for the region was - 8%.
The Russian beer market declined by an estimated 10% for the first nine months.
Carlsberg continued to strengthen its market share in Russia to 40.9% compared
to 38.7% for same period of 2008 gaining an impressive 220bp market share (Q3
market share was 40.8% vs 39.0% in Q3 2008). Carlsberg showed leadership in all
market segments and increased market shares in every segment except lower
mainstream. Key drivers behind the strong market performance continue to be a
superior brand portfolio and the strongest route-to-market with an integrated
production, logistics and distribution set-up.
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Company announcement 12/2009
4 November 2009
Page 8 of 29
Our Russian beer volumes (shipments) and 'in-market sales' (off-take) declined
by 8%.
The Russian market development continued to be weaker than expected and
therefore Carlsberg is reducing expectations for Russian market development for
the year to a decline at the level of the first nine months (previously a 5-6%
decline). Carlsberg still expects to gain market share as a trend and
consequently perform ahead of the market.
In the Ukraine, the Group's beer volumes increased organically by approximately
2% in a market declining around 8%. Hence, our volume market share strengthened
to around 29% corresponding to a 400bp yoy market share gain with a slightly
higher value than volume share. We are now the clear number two in the market.
The gain was driven by a well-executed turnaround including expanded
distribution and product launches where in particular the mainstream brand
Lvivske has performed exceptionally well. Due to the 94% excise duty increase on
1 July there was some stocking-up effect in Q2 and some de-stocking in Q3.
In the rest of the region Uzbekistan reported very strong volume growth, volumes
in Belarus were almost flat while the economic crisis in Kazakhstan affected
volumes negatively.
For the region organic net revenue growth was -1%. The price/mix improvement of
6% for beer off-set lower beer volumes. In Q3 organic net revenue was -4%.
In Russia, there was a positive price effect of 8% and mix effect of -3%. The
higher price per hl was driven by price increases, improved portfolio management
and sales execution. The negative mix effect was primarily driven by a shift in
packaging mix within brands, and a changed channel mix within off-trade as
consumers moved from smaller outlets towards discounters and supermarkets. In Q3
there was also a shift between brands.
For the region organic operating profit growth was 32%. Including acquisitions
operating profit was DKK 4,197m (DKK 3,310m in 2008). For Q3 operating profit
growth was -5% while organic operating profit growth in Q3 was 16%. Both gross
margins and operating margins for the region improved considerably, driven by
price increases, improved point-of-sales execution, favourable input costs,
synergies and the accelerated efficiency improvements. The efficiency
improvements have been necessary due to the challenging market conditions and
where costs are not linked to volume, it is the Group's expectation that this
cost base reduction will be sustainable.
In Russia, Carlsberg delivered strong operating margins for the nine months
period based on these initiatives. Ukraine margins improved significantly and
despite the negative currency impact the Ukrainian business delivered a strong
profit improvement even in DKK.
The Group has this year been able to more than off-set the negative profit
effect from lower volumes and negative operational leverage. For the region the
operating margin increased more than 600bp to 29.1% (22.8% in 2008). Organic
gross margin improved by approximately 525bp where higher net revenue per hl
accounted for approx. 70% of the increase and lower COGS (cost of goods sold)
due to synergies, efficiency improvements and lower input costs accounted
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Company announcement 12/2009
4 November 2009
Page 9 of 29
for approximately 30%. Excluding the effect of PPA, the operating margin would
have been 30.4% for the nine months of 2009 (24.2% in 2008).
On 2 October the Russian government proposed a significant excise duty increase
from RUB 3 to RUB 9 in 2010, RUB 10 in 2011 and RUB 12 in 2012. The bill is now
being discussed in the State Duma and a final decision is expected in late
November/early December. To be well-prepared for a new excise duty regime the
Group has undertaken scenario-planning for the Russian business for 2010. These
scenarios include assumptions on market development, pricing strategies and
adjustments to cost base. If the bill is implemented in its current form, it
will affect the beer market negatively.
ASIA
DKK million Q3 Q3 Change 9 mths 9 mths Change
2009 2008 (%) 2009 2008 (%) 2008
Beer sales (million hl) 3.5 3.1 14.1 9.9 8.8 12.8 11.5
Net revenue 1,060 932 13.7 3,183 2,571 23.8 3,555
Operating profit 197 145 36.4 519 386 34.5 511
Operating margin (%) 18.7 15.6 310bp 16.3 15.0 130bp 14.4
Mainly driven by China and Indochina the Asian business continued to grow and
delivered 9% organic beer volume growth. Including acquisitions, beer volumes
increased by 13%.
Indochina (Vietnam, Laos and Cambodia) continued its strong progress and
delivered approximately 32% yoy organic volume growth. The high growth was
across all three markets and Carlsberg also gained market share in all markets.
Despite the riots in the Xinjiang province having a negative impact on volumes
during Q3, organic volume growth in China continued at mid-single digits. Growth
was driven by local brands, Carlsberg Chill and the recently launched Carlsberg
Light that is targeting the Chinese restaurant sector. Carlsberg continued to
gain market share in China, both in Western China and in the international
premium segment.
Growth and expansion in India are on track and Carlsberg has recently started
the construction of the Group's fifth brewery.
Organic net revenue growth was 14%. The positive price/mix effect prevailed in
the majority of the Asian markets, particularly in Malaysia and China.
Operating profit increased by 35% to DKK 519m (DKK 386m in 2008) with organic
growth of 21%. Q3 organic operating profit growth was 33%. The business in
Indochina was the most important driver behind the organic profit growth while
China also contributed substantially. These improvements more than compensated
for the investments in India.
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Company announcement 12/2009
4 November 2009
Page 10 of 29
CENTRAL COSTS (NOT ALLOCATED)
Central costs were DKK 462m for the first nine months (DKK 605m in 2008). In Q3
central costs were DKK 110m (DKK 243m in 2008) which was an exceptionally low
level due to phasing.
Central costs are incurred for ongoing support of the Group's overall operations
and development and driving efficiency programmes. In particular, they include
the costs of running the headquarters and costs for central marketing, including
sponsorships.
OTHER ACTIVITIES
In addition to beverage activities, Carlsberg has interests in the sale of real
estate, primarily at its former brewery sites, and running the operation of the
Carlsberg Research Centre. Real estate gains were, as expected, insignificant in
the first nine months of 2009, and all in all these activities generated
operating profit of DKK -88m (DKK 395m in 2008).
Monetising the value of redundant assets, including the Copenhagen brewery site,
which are no longer used in operations, remains an important opportunity to
provide additional capital to the Group and enhance return on invested capital.
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 2008 except from IAS 1 "Presentation of Financial Statements"
which has been implemented from 1 January 2009 changing the presentation of the
primary financial statements and expenses for the year. The implementation has
not changed measurement and recognition.
Besides this, other new and amended standards and interpretations effective from
1 January 2009, including IAS 23 "Borrowings" have been implemented from 1
January 2009. These changes to the accounting policies have only had minor
effect on the interim accounts.
INCOME STATEMENT
Net revenue totalled DKK 45,766m (DKK 45,420m in 2008), an increase of 1%
compared to the same period of 2008. Organic development was flat compared to
2008, net acquisitions accounted for DKK 4,100m (+9%), while exchange rate
movements had a negative impact of DKK -3,540m (-8%). Organic revenue
development reflects organic volume decline of 5% that
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Company announcement 12/2009
4 November 2009
Page 11 of 29
was almost entirely off-set by a positive price trend, including value
management initiatives, focused brand support and continued volume growth and
positive price/mix in Asia.
Gross profit amounted to DKK 22,628m (DKK 22,016m in 2008), with organic growth
being DKK 435 (+2%), net acquired activities representing DKK 1,943m and
exchange rate movements having a negative impact of DKK -1,766m. Gross profit
margin increased by 97bp to 49.4%.
Sales and distribution expenses were DKK -12,155m, a reduction of DKK 1,056m
compared to the same period in 2008. Net acquired activities represented DKK
-925m, organic development was DKK 1,157m and currencies impacted with DKK 823m.
Administrative expenses amounted to DKK -2,803m (DKK -2,818m in 2008) with
acquired activities accounting for DKK -237m.
Other operating income, net, was DKK 6m (DKK 537m in 2008). The decrease was
expected and due to significant real estate gains in the first half of 2008. The
Group's share of the net profit of associates was DKK 71m against DKK 68m in
2008.
Operating profit before special items was DKK 7,747m against DKK 6,592m in 2008.
Beverage activities generated a profit of DKK 7,835m, an increase of DKK 1,638m
with net acquired activities representing DKK 787m of the increase and organic
growth DKK 1,675m (+27%). The Group achieved an operating margin of 16.9%,
+240bp compared to same period in 2008.
Net special items amounted to DKK -371m against DKK -297m in 2008.
Net financial items amounted to DKK -2,217m against DKK -2,175m in 2008.
Interest costs accounted for DKK -1,671m, compared with DKK -1,723m in 2008.
Other net financial items were DKK -546m (DKK -452m in 2008) and mostly related
to FX losses on debt denominated in foreign currency in Eastern Europe.
Tax totalled DKK -1,496m against DKK -1,210m last year.
Consolidated profit was DKK 3,663m, against DKK 2,910m in 2008.
Carlsberg's share of net profit was DKK 3,219m, against DKK 2,507m last year.
BALANCE SHEET
At 30 September 2009, Carlsberg had total assets of DKK 135,734m (DKK 143,306m
at 31 December 2008). The decrease relates to a reduction of property, plant and
equipment and foreign exchange movements, in particular from Russia with impact
on intangible assets and to a reduction of current assets.
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Company announcement 12/2009
4 November 2009
Page 12 of 29
Assets
Intangible assets totalled DKK 80,824m against DKK 84,678m at 31 December 2008.
The decrease is related to foreign exchange impact mainly from the Russian RUB
as no material additions or impairment write-downs have been recognised in 2009.
Property, plant and equipment totalled DKK 32,442m, down DKK 1,601m from 31
December 2008 driven by reduced capital expenditures. The development is mainly
driven by additions DKK 2.0bn, depreciation DKK -2.6bn and foreign exchange
impact DKK -1.0bn.
Financial assets amounted to DKK 5,369m (DKK 5,305m at 31 December 2008).
Financial assets mainly consist of associated companies, deferred tax assets and
trade loans. There have been no material fluctuations within the Group.
Current assets amounted to DKK 16,977m (DKK 19,118m at 31 December 2008). The
decrease is due to lower inventories, reduced prepayments and settlement of
financial instruments.
Equity and liabilities
Total equity was DKK 58,484m, of which DKK 4,927m can be attributed to minority
interests and DKK 53,557m to shareholders in Carlsberg A/S. The decrease in
equity compared to 31 December 2008 of DKK 2.3bn is mainly due to foreign
exchange adjustments of approximately DKK -4.9bn primarily due to the
devaluation of the net assets in primarily RUB, profit for the period of DKK
3.7bn and payment of dividends to shareholders of DKK 0.8bn.
Net interest bearing debt has been reduced from DKK 44,2bn as at 31 December
2008 to DKK 38.5bn as at 30 September 2009.
Total liabilities were DKK 77,250m (DKK 82,555m at 31 December 2008). Current
liabilities were DKK 25,171m (DKK 25,600m at 31 December 2008). Excluding
current portion of borrowings, current liabilities totalled DKK 21,660m (DKK
20,309m at 31 December 2008) reflecting the focus on working capital
improvement.
www.carlsberggroup.com
Company announcement 12/2009
4 November 2009
Page 13 of 29
CASH FLOW
Cash flow from operating activities in the first nine months of 2009 was DKK
8,457m against DKK 4,233m for the same period of 2008. Operating profit before
depreciation and amortisation was DKK 10,524m against DKK 9,231m in 2008.
The previously announced intense focus on reduction of working capital had a
significantly positive impact on free cash flow in the first nine months of
2009. The positive impact of DKK 1,119m (DKK -881m in 2008) was driven by
reduced inventories and receivables as well as increased payables.
Paid net interest etc. amounted to DKK -1,895m against DKK -2,206m for the same
period of 2008.
Cash flow from investing activities was DKK -2,341m against DKK -55,863m in the
first nine months of 2008. Excluding the acquisition of certain assets in S&N,
the decrease is essentially attributed to the planned reduction of operating
capital expenditures of DKK -2.5bn (-51%) compared to 2008 and a change in
financial investments of DKK +922m which is explained by prepayments and hedging
instruments relating to the acquired activities of S&N in 2008.
Consequently, free cash flow was DKK 6,116m against DKK -51,630m for 2008.
FINANCING
At 30 September 2009, the gross interest-bearing debt amounted to DKK 42.3bn and
net interest-bearing debt amounted to DKK 38.5m. The difference of DKK 3.8bn is
other interest- bearing assets, including DKK 2.9bn in cash and cash
equivalents.
Of the gross interest-bearing debt, 96% (DKK 40.7bn) is long term, i.e. with
maturity more than one year from 30 September 2009, and consists primarily of
facilities in EUR.
In May, Carlsberg established a EUR 3bn EMTN programme under which a EUR 1bn and
GBP 300m notes were issued. The proceeds were used to refinance part of the debt
related to the acquisition of parts of S&N. Consequently, Carlsberg has no
refinancing needs for a number of years.
Approximately 84% of net financial debt is fixed interest (fixed-interest period
exceeding one year).
www.carlsberggroup.com
Company announcement 12/2009
4 November 2009
Page 14 of 29
FINANCIAL CALENDAR FOR THE FINANCIAL YEAR 2010
The financial year follows the calendar year, and the following schedule has
been set for 2010:
23 February 2010 Financial Statement as at 31 December 2009
16 March 2010 Annual report for 2009
25 March 2010 Annual General Meeting
11 May 2010 Interim results for Q1 2010
17 August 2010 Interim results for Q2 2010
16 November 2010 Interim results for Q3 2010
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 developments in interest rates and
exchange rates), financial and regulatory developments, changes in 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, stipulation of market values in the opening balance of the
acquired companies, litigations, 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.
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. Carlsberg accepts no responsibility for any such forward
looking statements.
www.carlsberggroup.com
Company announcement 12/2009
4 November 2009
Page 15 of 29
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 September
2009.
The interim report which has not been audited or reviewed by the Company's
auditor 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.
In our opinion, the interim report gives a true and fair view of the Carlsberg
Group's assets, liabilities and financial position at 30 September 2009, and of
the results of the Carlsberg Group's operations and cash flow for the period 1
January - 30 September 2009.
Further, in our opinion the management's review (p. 1-14) gives a true and fair
review of the development in the Group's operations and financial matters, the
result of the Carlsberg Group for the period and the financial position as a
whole, and describes the significant risks and uncertainties pertaining to the
Group.
Copenhagen, 4 November 2009
Executive Board of Carlsberg A/S
Jørgen Buhl Rasmussen Jørn P. Jensen
Board of Directors of Carlsberg A/S
Povl Krogsgaard-Larsen Jess Søderberg Hans Andersen
Chairman Deputy Chairman
Flemming Besenbacher Hanne Buch-Larsen Richard Burrows
Kees van der Graaf Niels Kærgård Axel Michelsen
Erik Dedenroth Olsen Bent Ole Petersen Per Øhrgaard
www.carlsberggroup.com
Company announcement 12/2009
4 November 2009
Page 16 of 29
FINANCIAL STATEMENT
Income statement
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Note 1 Segment reporting by region (beverages)
Note 2 Segment reporting by activity
Note 3 Segment reporting by quarter
Note 4 Special items
Note 5 Borrowings and facilities
Note 6 Net interest-bearing debt
Note 7 Acquisition of entities
This statement is available in Danish and English. In the event of any
discrepancy between the two versions, the Danish version shall prevail.
The Carlsberg Group 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
45,000 people work for the Carlsberg Group, and its products are sold in more
than 150 markets. In 2008 the Carlsberg Group sold more than 125 million
hectolitres of beer, which is about 103 million bottles of beer a day.
Find out more at www.carlsberggroup.com.
www.carlsberggroup.com
Company announcement 12/2009
4 November 2009
Page 17 of 29
INCOME STATEMENT
DKK million
Q3 Q3 9 mths 9 mths
2009 2008 2009 2008 2008
Net rev
16,
357 18,4 43 45,766 45,420 59,944
en-
e
Cost of sales
-8,130 -9,5 70 -23, 138 -23,404 -31, 248
Gro ss pr-
8,22 7 8,873 22,628 22,016 28,696
f
it
Sales and distribution expenses -4,033 -4,9 53 -12, 155
-13,211 -17, 592
Administrative expenses -875 -1,0 65 -2,803 -2,8
18 -3,934
Othe r op erat in g inc ome, Shar e of -41 167 6
537 728
prof it tax , tax ,
tax , 26 32
71 68 81
Operating profit before special items 3,304 3,054 7,74 7
6,592 7,97 9
Spec ia l item s,
-180
-169 -371 -297 -1,641
Financial income
-277 76 377 1,179 1,31 0
Fin anci expe ns es
-490
-969 -2,594 -3,3 54 -4,766
al
Profi t be- tax
2,357 1,992 5,15 9 4,120 2,88 2
ore
Corporation tax
-683 -583 -1,496 -1,2 10 324
Con soli dat ed prof
1,67
4 1,409 3,66 3 2,910 3,20 6
it
Profit attributable
to:
Minor ity inte rests
183
188 444 403 575
Shareholders in Carlsberg A/S 1,491 1,221 3,21 9
2,507 2,63 1
Ear nin gspersh are*
9.8
8.0 21.1 23.3 22.2
Ear nin gspersh are,dil ute d* dil ute
d* dil ute d* 9.8 8.0
21.1 23.3 22.2
* Adjusted for bonus factor from right issue in June 2008 in accordance with IAS
33, excl. number of shares period-end
www.carlsberggroup.com
Company announcement 12/2009
4 November 2009
Page 18 of 29
STATEMENT OF COMPREHENSIVE INCOME
Q3 Q3 9 mths 9 mths
DKK 2009 20 08 200 9 200 8
20 08
million
Profit for the period 1,674 1,409 3,663 2,910
3,206
Ot her co mpr ehe nsiv e inco me
Foreign exchange adjustments of foreign entities -520 770 -4,8 52 495
-7,515
Value adjustments of hedging instruments -34 -376 -18 3 -855
-1,552
Value adjustments of securities - -1 - -25
-54
Retirement benefit obligations 18 -11 33 -86
-46
Share-based payment 19 6 42 16
31
Value adjustment of step acquisition of subsidaries - 1,752 -65 12,966
14,810
Other - -25 -2 7
-9
Tax othe r co mpr ehen siv e inco me 17 62 40 229
335
Ot her co mpr ehe nsiv e inco me -500 2,177 -4,9 87 12,747
6,00 0
Total comprehensive income 1,174 3,586 -1,3 24 15,657
9,20 6
Total comprehensive income attributable to:
Mi nori ty in ter est s 145 465 97 1,839
1,788
Sh areho in Car lsbe rg A/S in Car lsbe1,0 29 3,121 -1,4 21 13,818
7,41 8
lde rs rg A/S
www.carlsberggroup.com
Company announcement 12/2009
4 November 2009
Page 19 of 29
STATEMENT OF FINANCIAL POSITION
DK K
30 30 31
mi
S- S- D-
lli
pt p c
on
. t. 2-
2- 2- 0
0 08 8
9
Ass-
ts
Int-
8 88- 8
n
0- 6 4-
gib-
82 29 6-
e
4 8
asse
ts
Pro-
3 35- 3
ert-
2,- 4 4-
,
42 79 0-
pla-
3
t
and
equ-
pme-
t
Fin-
5,- 5 5
nci-
69 ,- ,-
l
30 05
ass-
ts
Tot-
1 12- 1-
l
18- ,7 4-
non-
63538 0-
cur-
6
ent
ass-
ts
Inv
1 14- 1
ent
0- 1 1-
ori
9 88 6-
es
57 6
Oth-
3,- 4 4
r
65 ,- ,-
rec-
67 75
iva-
les
etc.
Cash
2,- 4 2
and
55 ,- ,-
cash
16 57
equ-
val-
nts
Tot-
1- 22- 1
l
,- 5 9-
7 71 1-
7 8
Ass-
1- 1 1
ts
2 ,- 62
held
48
for
sale
Tot-
1 15- 1-
l
35- ,3 3-
ass-
73457 3-
ts
6
Eq
uity
Equity, shareholders in Carlsberg A/S
5 61- 5
3,- 8 5-
57 13 5-
1
Min-
4- 5 5
r
92 ,- ,-
ity
7 34 30
Tot-
5 66- 6
l
8,- 8 0-
equ-
84 47 7-
ty
1
Bor-
3 43- 4
owi-
8,- 5 3-
gs
31 50 2-
0
Def obl iga tio ns
13 14- 1
erre
,- 4 3-
d
9 88 3-
tax
5 7
,
ret
irem
ent
Tot-
5 58- 5
l
1,- 0 6-
non-
26 38 5-
cur-
7
ent
lia-
ili-
ies
Bor-
3- 8 5
owi-
5- ,- ,-
gs
1 55 91
Tra-
7,- 7 7
e
75 ,- ,-
pay-
30 93
bles
Deposits on returnable bottles and crate
1,- 1 1
46 ,- ,-
78 55
Oth-
1 9 1
r
2,- ,- 0-
cur-
39 38 8-
ent
1
lia-
ili-
ies
Tot-
2 27- 2
l
5,- 1 5-
cur-
71 01 6-
ent
0
lia-
ili-
ies
Lia- held held held held held held for held
he- 1- 1 3
ili- for for for for for sale for
d 3 ,- 68
ies sale sale sale sale sale sale
for 71
ass-
sa-
cia-
e
ed
with
ass-
ts
Tot-
13- 15- 1-
l
,7- ,3 3-
equ-
4 57 3-
ty
6
and
lia-
ili-
ies
www.carlsberggroup.com
Company announcement 12/2009
4 November 2009
Page 20 of 29
STATEMENT OF CHANGES IN EQUITY
9 mths 2009
Shar e Fair valueRetain- Total
Total Total Total
d
ca pit a l adj ustm ent s earni reserv es reserv es ca
pital and Minority Equi ty
ngs
reserve s interests
3,051 -1,539 60,709 52,470 52,470
55,521 5,230 60,751
- - 122 3,237 -1,421 -1,421
-1,421 97 -1,324
- - -9 -9 -9
-9 -9 - -9
- - -534 - 534 - 534
-534 -299 -833
- - - - -
- - -101 -101
- -122 2,694 -1,964 -1,964
-1,964 -303 -2,267
3,051 -1,661 63,403 50,506 50,506
53,557 4,927 58,484
9 mths 2008
Shar e Fair valueRetain- Total
Total Total Total
d
ca pit a l adj ustm ent s earni reserv es reserv es ca
pital and Minority Equi ty
ngs
reserve s interests
1,52 6 67 17,198 17,095 17,095
18,621 1,323 19,944
- 21 14,039 13,818 13,818
13,818 1,839 15,657
1 ,525 - 28,301 28,301 28,301
29,826 15 29,841
- - 3 3 3
3 3 - 3
- - -458 - 458 - 458
-458 -231 -689
- - 3 3 3
3 3 2,088 2,091
1,52 5 21 41,888 41,667 41,667
43,192 3,711 46,903
3,05 1 88 59,086 58,762 58,762
61,813 5,034 66,847
www.carlsberggroup.com
Company announcement 12/2009
4 November 2009
Page 21 of 29
STATEMENT OF CASH FLOWS
Q3 9
mths 9 mth s
200 8 200
9 20 08 2008
Operating profit before special items 3 ,054 7,747 6,592 7,979
for depr depr ecdepr depr depr ecdepr de- 1 ,044 2,777 2,639
3,631
ec iat ionec ec iat ionec r
iat , iat iat , iat ec
ion , ion ,ion , ion ,iat
ion
,
impairment losses
Operating profit before - 4 ,098 10,524 9,231 11,610
depreciation, amortisation ,
-
-
1
and impairment losses1
Ad jus tme nt for othe r non -ca sh -10 4 211 -289 -604
ite ms Change in working capital2
-21 2
1,119 -881 1,556
Restructuring costs paid -95 -373 -291 -482
Interest etc. received -12 163 1 89 256
Interest -90 5 - 2,058 -
2,395 - 3,010
etc. paid
Corporation tax paid -62 0 - 1,129 - 1,331 - 1,514
Cash flow from operating activities 2 ,150 8,457 4,233 7,812
Acquisition of property, plant and - - 1,30 6 - 2,038 - 4,280 - 5,292
equipment and -
-
1
intangible
assets
Dis po sal of prop ert y, pl ant and 4 0 154 1 19 374
equ ipm ent and intangible assets
Change in trade loans
-92
-304 -184 -290
Total operational investments - 1,35 8 - 2,188 - 4,345 - 5,208
an d disp osal -42 5 110 -51,25 3 - 51,444
Acquisition of financial assets3 -22 -48 -970 - 1,248
Disposal of financial assets - 4 5 36 39
Change in financial receivables 209 1 5 90 427
Dividends -9 5 2
14 75
received
Total financial investments -24 7 174 -52,08 3 - 52,151
in vest men in in in in in in in -10 5 -347 -707 -
1,117
ts
Disposal of other property, plant - 212 2 0 1,272 1,323
and equipment
Total other activities4 107 -327 565 20 6
Cash flow from investing activities - 1,49 8 - 2,341 -55,86 3 - 57,153
Free cash 652 6,116
-51,63 0 - 49,341
flow
Shareholders in Carlsberg A/S -16 -545 2 9,371 29,482
Minori ty 2 6 -538
-419 -549
inte rests
finan cing - 1,32 2 - 4,747 2
3,875 21 ,1 5 1-
5
fr om fi nanci ng - 1,31 2 - 5,830 5 2,827 50,084
Net cash -66 0 286
1,197 7 4 3
flow
Cas h an d eq eq eq eq eq eq eq 3 ,199 2,065 1,351
1,351
cash uivaluival uivaluivaluival uivalui-
ent sent s ent sent sent s ent sal
at at at at at at ent
s
at
Currency translation adjustments 3 8 -52 29 -29
Cash and cash equivalents at 2 ,577 2,299 2,577 2,065
period-end6
loss loss
es es
2 2008 FY includes DKK 1,065 million received from the license agreement with
The Coca-Cola Company in June 2008. 3 2008 FY includes costs of hedging
instruments acquired prior to the acquisition of S&N. 4 Other activities cover
real estate and assets under construction, separate from beverage activities,
including costs of construction contracts. 5 2008 FY includes loan raised for
the financing of the the acquisition from S&N and repayment of parts of the loan
following the capital increase.
6 Cash and cash equivalent less bank overdrafts.
www.carlsberggroup.com
Company announcement 12/2009
4 November 2009
Page 22 of 29
NOTE 1
Segment reporting by region (beverages)
DKK million Q3 Q3 9 mths 9 mths
2009 2008 2009 2008
2008
Beer sales (pro rata,
million hl)
Northern & Western Europe 14.1 15.4 38.8 38.9
51.0
Eastern Europe 14.4 15.5 40.2 35.9
46.8
Asia 3.5 3.1 9.9 8.8
11.5
Total 32.0 34.0 88.9 83.6
109.3
Net revenue (DKK million)
Northern & Western Europe 10,110- 10,804 28,0 15 28,213
37,1 28
-
-
-
-
4
Eastern Europe 5,135- 6,66 1 14,442 14,521
19,1 37
-
-
6
1
Asia - 1,060 932 3,183 2,571
3,555
-
-
-
0
Not allocated 52 46 126 115
124
Beverages, total 16,357- 18,443 45,7 66 45,
42059,9 44
-
-
-
-
3
Opera tingprofi t before amorti sationand special -
-
-
-
s
(EBITDA - DKK million)
Northern & Western Europe 2,224- 2,00 1 5,146 4,728
6,081
-
-
0
1
Eastern Europe 1,871- 2,01 2 5,184 4,140
5,348
-
-
1
2
Asia 248 192 676 515
694
Not allocated -90 -220 -403 -557
-900
Beverages, total 4,253 - 3,98 5 10,603 8,826
11,223
-
-
8
5
Opera tingprofi t before (EBIT - DKK millio n)
Northern & Western Europe 1,700- 1,40 1 3,580
3,1063,953
-
-
0
1
Eastern Europe 1,550- 1,63 7 4,197
3,3104,109
-
-
3
7
Asia 197 145 519 386
511
Not allocated -108 -243 -461 -605
-968
Beverages, total 3,339 - 2,94 0 7,835
6,1977,605
-
-
4
0
Opera tingprofi t margi n
(%)
Northern & Western Europe 16.8 13.0 12.8 11.0
10.6
Eastern Europe 30.2 24.6 29.1 22.8
21.5
Asia 18.7 15.6 16.3 15.0
14.4
Not
allocated……………
Beverages, total 20.4 15.9 17.1 13.6
12.7
www.carlsberggroup.com
Company announcement 12/2009
4 November 2009
Page 23 of 29
NOTE 2
Segment reporting by activity
DKK Q3 Q3
million
2009 2008
Beverages Other Total Beverages
Other Total
activities
activities
Net 16, 357 - 16,357 1 8,443
- 18,443
Operating profit before special 3,339 -35 3,304 2,940
114 3 ,054
items
Sp eci aln- n- net -12 2 -58 -18 0 -169
- -169
t t
Financial items, net -758 -9 -767 -918
25 -893
Profit before tax 2,459 -102 2,35 7 1,853
139 1 ,992
Cor po tax -698 15 -68 3 -548
-35 -583
rat ion
Con so p- p- pr- 1,76 1 -87 1,674 1,305
104 1 ,409
lid ated of of f
it it it
Attributable to:
Minori ty inte rests 183 - 183 1 87
1 1 88
Sh are in in in 1,57 8 -87 1,491 1,118
103 1,221
hol der s
DKK 9 mths 9 mths
million
2009 2008
Beverages Other Total Beverages
Other Total
activities
activities
Net 45, 766 - 45,766 4 5,420
- 45,420
Operating profit before special 7,835 -88 7,747 6,197
395 6 ,592
items
Sp eci aln- n- net -31 3 -58 -37 1 -297
- -297
t t
Fin anc ite ms, -2, 212 -5 -2,217 -2,142
-33 - 2,175
ial
Profit before tax 5,310 -151 5,15 9 3,758
362 4,120
Cor po tax -1, 521 25 -1,496 -1,140
-70 - 1,210
rat ion
Con so p- p- pr- 3,78 9 -126 3,66 3 2,618
292 2 ,910
lid ated of of f
it it it
Attributable to:
Minori ty inte rests 444 - 444 4 02
1 4 03
Sh are in in in 3,34 5 -126 3,21 9 2,216
291 2 ,507
hol der s
www.carlsberggroup.com
Company announcement 12/2009
4 November 2009
Page 24 of 29
NOTE 3
Segment reporting by quarter
DKK
millionQ4Q1Q2Q3Q4Q1Q2Q3
2007 2008 2008 2008 2008 2009 2009
2009
Net revenue
Northern and Western 7,988 6,63 310,776 10,804 8, 915 7, 20010,70
510,110
Europe
Eastern Europe 2,066 1,97 2 5,888 6,661 4,616 3, 466 5,
8415,135
Asia 709 811 828 932 9 84 1, 074 1,
0491,060
Not allocated 55 20 49 46 9 4 6 2 8 5
2
Beverages, total 1 0,818 9,43 617,541 18,44314,5 24 11,7 8617,623
16,357
Other activities - - - - - - - -
Tot al 1 0,81 8 9,43 617,541 18,44314,5 24 11,7 8617,623
16,357
Operating profit before
special items
Northern and Western 731 135 1,570 1,401 8 47 1 40 1,
7401,700
Europe
Eastern Europe 345 285 1,388 1,637 7 99 6 95 1,
9521,550
Asia 76 124 117 145 1 25 1 55 1 67 1
97
Not allocated - 318 - 163 - 199 - 243 -363 - 169 - 184 -
108
Beverages, total 834 381 2,876 2,940 1,408 8 21 3,
6753,339
Other activities 94 7 274 114 -21 -33 -20
-35
Total 928 388 3,150 3,054 1,387 7 88 3,
6553,304
Sp ecia l item net - 243 -37 -91 - 169-1,344 - 107 -84 -
180
s,
Financial items, net - 428 - 470 - 812 - 893-1,281 - 904 - 546 -
767
Profi t before tax 257 - 119 2,247 1,992-1,2 38 - 223 3,
0252,357
Corp orat ion tax - 173 32 - 659 - 583 1,534 6 5 - 878 -
683
Con soli dat ed prof it 84 -87 1,588 1,409 2 96 - 158 2,
1471,674
Attributable to:
Minor ity inte rests 47 42 173 188 1 72 5 4 2 07 1
83
Sh areho lde rs in Car 37 - 129 1,415 1,221 1 24 - 212 1,
9401,491
lsbe rg
A/S
www.carlsberggroup.com
Company announcement 12/2009
4 November 2009
Page 25 of 29
NOTE 4
Special items
DKK million 9 mths 9 mths
2009 2008 2008
Gai n fro m sale 49 - -
Impairment of Leeds Brewery, - - -197
Carlsberg UK
Impairment of Braunschweig Brewery, - - -135
Carlsberg Deutschland
Loss on disposal of Türk Tuborg - - -232
Provision for onerous procurement -175 - -245
contracts
Relocation costs, termination
benefits and impairment of
non-current as set s in con nect ion
wit h new prod uct ion st ruct ure in
Den mar k
- 34 -25 -19
Ter mi nati on
in connection with new production -19 -30 -30
structure at Sinebrychoff, Finland
Termination benefits etc. in
connection with Operational Exc ell
ence prog ramm es
- -44 -150
Termi natio n benefits
Acc oun ting - -12 -16
Restructuring, Carlsberg UK - 39 - -
Restructuring, Carlsberg Italia - 31 -31 -93
Restructuring, Brasseries - 27 - -291
Kronenbourg, France
Restructuring, Ringnes, Norway - -9 -26
Other restructuring - 78 -12 1 -138
Integ ration - - 17 -25 -69
-
-
-
s
Special items, net -371 -29 7 -1.641
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Company announcement 12/2009
4 November 2009
Page 26 of 29
NOTE 5 (PAGE 1 OF 2)
Debt and credit facilities
DKK million 30 Sept. 2009
Non-current borrowings:
Issued bonds 13,494
Bank borrowings 22,711
Mortgages 1,989
Lease liabilities 27
Other non-current borrowings 610
Total 38,831
Current borrowings:
Issued bonds -
Mortgages 366
Bank borrowings 3,031
Lease liabilities 15
Oth er cur rent 99
Total 3,511
Tot al non -cu rren t and cu rren t bor ro win gs 42,3 42
Cash and cash equivalents -2,855
Net financial debt 39,487
Other interest bearing assets -954
Net interest bearing debt 38,533
All borrowings are measured at amortised cost. However, fixed-rate
borrowings swapped to floating rates are measured at fair value. The
carrying amount of these borrowings is DKK 2,795m
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Company announcement 12/2009
4 November 2009
Page 27 of 29
NOTE 5 (PAGE 2 OF 2)
Debt and credit facilities
DKK million
Time to maturity for non-current borrowings: 30 Sept. 2009
1-2 years 2-3 years 3-4 years 4-5 > 5 years > 5 years Total
years
- 2,032 1,638 7,392 2,432 2,432 13,494
992 404 20,385 186 744 744 22,711
- - - - 1,989 1,989 1,989
632 - - 5 - - 637
1,624 2,436 22,023 7,583 5,165 5,165 38,831
Net
financial Interest*
debt* Floating FixedFloating % Floating % Fixed %
32,647 1,582 31,065 5% 5% 95%
2,252 1,881 371 84% 84% 16%
1,443 1,443 - 100% 100% -
505 505 - 100% 100% -
2,271 2,271 - 100% 100% -
8 96 896 - 100% 100% -
-5 27 -2,1 65 1, 638 N/A N/A N/A
39,487 6, 413 33,074 16% 16% 84%
Commited credit facilities* 30 Sept. 2009
DKK million
Less than 1 year 6,126
1 to 2 years 4,854
2 to 3 years 2,436
3 to 4 years 26,949
4 to 5 years 7,583
More than 5,165
Total 53,113
Sh ort ter m 6,12 6
Long term 46,987
* Defined as short term borrowings and long term committed credit facilities
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Company announcement 12/2009
4 November 2009
Page 28 of 29
NOTE 6
Net interest bearing debt
DKK million Q3 Q3 9 mths 9 mths
2009 2008 2009 20 08 200 8
Net interest-bearing debt is calculated as follows:
Non-current borrowings 38,831
43,550 43,230
Cu rren t borr owi ngs 3,5 11
8,45 5 5,29 1
Gr oss int eres t-b eari ng 42 ,342
52,005 48,521
Ca sh and - 2,8 55
-4,316 -2,857
Loans to associates -3
-3 -6
On-trade loans - 2,201
-2,327 -2,278
les s non- inte res t-b ear ing- 1,4 03
1,37 5 1,40 3
-
r
-
i
-
n
Other receivables - 1,699
-2,276 -2,032
les s non- inte res t-b ear ing- 1,5 46
1,86 5 1,40 5
-
r
-
i
-
n
Net interest-bearing debt 38,533
46,323 44,156
Changes in net interest-bearing debt:
Net interest-bearing debt at beginning of period 40,814
47,40 9 44,1 56 19,726 19,726
Cash flow from operating activities -2,489 -2,1
50 -8,457 -4,233 -7,812
Cash 473
1,49 8 2,341 55,863 57,153
Dividend to shareholders and minority interests 3
-25 833 689 723
Acq uisi tio n of 188
1 242 203 299
Acq uisi tio n/di spos al 9
5 9 -3 -2
Acq uisi tio n of -
-43 3 4 3,986 4,01 5
Ca pita l -
11 - -29,82 6 -29,938
Change in interest-bearing lending 255
18 317 410 140
Effects of currency translation - 692
384 -954 5 4 -226
Other - 28
-39 5 42 -546 78
Total change -2,281 -1,0
86 -5,623 26,597 24,430
Net interest-bearing end of period 38,533
46,32 3 38,5 33 46,323 44,156
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Company announcement 12/2009
4 November 2009
Page 29 of 29
NOTE 7
Acquisition of entities
The purchase price allocation of fair value on identified assets, liabilities
and contingent liabilities in the acquisition of part of the activities in S&N
has been completed in April 2009 and for the acquisition of Baku-Castel Brewery
in August 2009. The final allocation of fair value has resulted in total net
assets of DKK 21.1 bn, a decline of DKK 0.2 bn compared to the preliminary
allocation 31 December 2008, and total goodwill amounts to DKK 33.7bn, an
increase of DKK 0.2 bn. Furthermore, there have been some reclassifications
between the individual balance sheet items. Adjustments will be made to the
purchase price dependent on the final allocation of debt according to agreement.
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