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 7/2010
11 May 2010
Page 1 of 28
Interim results as at 31 March 2010
Q1 performance in line with plan
• In the traditionally small first quarter Carlsberg reported an operating
profit of DKK 735m
(DKK 788m in 2009). Group operating profit margin was unchanged at 6.7% (6.7%
in 2009). The strong margin improvement in Northern & Western Europe and Asia
was off-set by the expected margin weakness in Eastern Europe following the
significant Russian excise tax increase and the subsequent stock-building in
Russia in late 2009.
• Beer volumes declined by 7% to 21.0m hl with an organic beer volume decline of
9%. While
Asian volumes grew double-digit and Northern & Western European volumes grew
by low- single digit percentages, the decline in Eastern European volumes was
significantly impacted by de-stocking in Russia in the first quarter.
Excluding the de-stocking effect the estimated organic volume development was
-2%.
• Carlsberg improved overall market share in Northern & Western Europe, Asia and
Eastern
Europe excluding Russia.
• The Russian beer market declined by 12% in the first quarter in line with
expectations and
Carlsberg's Russian market share was unchanged compared to Q4 2009. Based on
the Russian market dynamics in Q1 following the excise tax increase, Carlsberg
maintains its expectations that the Russian beer market will decline by low
double-digit percentages in 2010. Carlsberg still anticipates outperforming
the market.
• Net revenue declined by 7% to DKK 11.0bn (DKK 11.8bn in Q1 2009) with a -7%
organic net
revenue development. Price/mix was +1% despite the negative effect from
phasing of price increases in Russia following the excise tax increase.
• In line with management's expectations Group operating profit was DKK 735m
(DKK 788m
in 2009). Northern & Western Europe and Asia delivered strong organic profit
growth while profits in Eastern Europe as expected were affected by the
de-stocking in Russia and the phasing of price increases following the
significant Russian excise tax increase in the beginning of the year.
Adjusting for the estimated Russian de-stocking impact of around DKK 300m,
organic operating profit growth in the beverage activities would have been
21%.
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Company announcement 7/2010
11 May 2010
Page 2 of 28
• Net profit was DKK 471m. Net profit includes a non-cash, non-taxable income in
special
items of DKK 390m related to a new acquisitions accounting regulation.
Excluding this item, net profit was DKK 81m versus DKK -212m in Q1 2009 or DKK
+293m.
• Free cash flow was DKK -549m (DKK -1,079m in Q1 2009) and net interest bearing
debt was
DKK 37.1bn (DKK 45.8bn end Q1 2009).
• Carlsberg confirms underlying assumptions and full-year
outlook:
•Operating profit to be in line with that reported for 2009
• Net profit growth of more than 20% (excluding the one-off acquisition related
special
item and net income of DKK 390m)
• Due to the Russian de-stocking in Q1 and the phasing of price increases linked
to the excise
duty increase in Russia, earnings will be skewed more towards the second half
of the year.
Commenting on the results, CEO Jørgen Buhl Rasmussen says: “We are satisfied
with the first quarter performance which was in line with our plans and we
remain confident in our ability to meet our targets for 2010. As expected, the
beginning of the year was affected by de-stocking and consequent volume decline
in our Eastern European business and we continue to follow our detailed plans
for the region. We are particularly pleased with the Asian and Northern &
Western European regions in the quarter as revenue growth and efficiency
improvements in both regions accelerated profit growth.”
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 Bekke, +45 3327 1412
www.carlsberggroup.com
Company announcement 7/2010
11 May 2010
Page 3 of 28
KEY FIGURES AND FINANCIAL RATIOS
DKK
Q1 Q1
million
20
10 200 9 20 09
Total
sales
volumes
(milli-
n hl)
25.7 25.1 137.0
be vera 4
.5 4.6 22.2
ges
Income
stateme-
t
Net rev 1 0,97
3 11,786 59,382
enue
Operating 735
788 9,390
profit
before
special
items
Spec ia l
349 -10 7 -695
item s,
Financi-
- 515 -90 4 -2,990
l items,
net
Profit 569
-22 3 5,705
before
tax
Corpora-
-48 65 -1,538
ion tax
Con so
521 -15 8 4,167
lid ated
Attribut-
ble to:
Non-co-
5 0 54 565
trolli-
g
intere-
ts
Shareh-
471 -21 2 3,602
lders
in
Carlsb-
rg A/S
Statem-
nt of
financ-
al
positi-
n
Tot al 144,
718 139,132 13 4,51 5
ass ets
Invested 117,700
116,104 10 9,53 8
capital
Int ere 3 7,10 2
45,839 35,679
st-b
eari ng
de bt,
Eq uity ,in 5 9,64 0
51,402 54,829
Ca
r-
sb
er
g
A-
S
Statem-
nt of
cash
flows
Cash flow - 110
-23 3 13,631
from
operating
activities
Cash - 439
-84 6 -3,082
flow
from
invest-
ng
activi-
ies
Free cash -
549 -1,07 9 10,549
flow
Financi
al
ratios
Operat % 6 .7
6.7 15.8
ing
margin
Return on average invested capital (ROIC) 8 .2 7.3 8.2
ratio % 4
5.0 40.4 44.2
Debt/equi-
x 0 .6 0.8 0.6
y ratio
(financial
gearing)
Interest x 1
.4 0.9 3.1
Stock
market
ratios*
Earnings - 3
.1 -1.4 23.6
per -
share K
(EPS)
flow pershare share share share
-0.7 -1. 5 89.3
(CFPS)
Free - -3.6
-7.1 69.1
cash -
flow K
per
share
(FCFPS)
Share -
463 230 384
price -
(B-shar- K
s)
Number 1152, 549
152,554 15 2,55 3
of -
shares -
(perio- -
-end) 0
Number of shares (average, excl. treasury 152, 549 152,554 15 2,55 0
shar es)
www.carlsberggroup.com
Company announcement 7/2010
11 May 2010
Page 4 of 28
BUSINESS DEVELOPMENT
Q1 2009 Change
Q1 2010 Change
200 9
DKK Or gani c Acq ., net Cur renc y Rep ort ed
milli-
n
Be ersal es 22.6 -9% 2% - 21.0 21.0 -7%
116 .0
Net 11,786 -7% -2% 2% 1 0,973 -7% 59,383
revenue
Operat- 788 -11% 0% 4% 7 35 7 35 -7%
9,390
ng
profit
Operat- 6.7 - - - - 6.7 6.7 0bp
15.8
ng
margin
(%)
Volume, revenue and profit development in the first three months of the year
were in line with management's expectations.
Organic Group beer volumes declined by 9%. Including acquisitions beer volumes
declined by 7% to 21.0m hl (22.6m hl in 2009). The main driver of the lower
volumes came from the Russian market where there was substantial de-stocking
following the stock-building in Q4 2009 ahead of the excise tax increase.
Adjusting for the Russian de-stocking impact of around 1.5m hl, organic beer
volumes would have declined by 2%. Pro rata Group volumes of other beverages
were 3.9m hl (4.1m hl in 2009).
Net revenue declined by 7% to DKK 10,973m (DKK 11,786m in 2009) with -7% organic
revenue development (consisting of total volume -8% and price/mix +1%), currency
impact +2% and net acquisition impact -2%.
Innovations and new products within beer have been introduced in several markets
in the latter part of Q1 and the successful roll-out has continued in some of
the non-beer products like Somersby and Eve, the latter being introduced in new
markets in all three regions.
Cost of sales per hl declined. Due to the slightly higher net revenue per hl and
the lower cost of sales per hl organic gross profit per hl increased by
approximately 4%.
Operating expenses, including brands marketing, declined by 2% (3% organic
decline) despite a double-digit percentage increase in marketing costs.
Group operating profit declined by 7% to DKK 735m (DKK 788m in 2009). Organic
operating profit development was -11%, currency impact was +4% with no effect
from net acquisitions. Operating profit for the beverage activities was DKK 728m
(DKK 821m in 2009) with a 16% organic decline. The main reason for the negative
organic operating development was the Russian de-stocking and adjusting for the
estimated impact of DKK 300m from this, organic operating profit growth in the
beverage activities would have been 21%.
Free cash flow was DKK -549m (DKK -1,079m in 2009). The improvement was mainly
driven by lower capital expenditures and lower interest payments. The total
working capital change was similar to last year's level while trade working
capital improved in line with this year's plan of a reduction in the average
trade working capital for the year.
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Company announcement 7/2010
11 May 2010
Page 5 of 28
Unchanged 2010 earnings expectations
The first quarter is traditionally a small quarter for Carlsberg. The Group's
performance was in line with expectations and Carlsberg reiterates all major
assumptions and the outlook for the year as stated in the full-year announcement
in February 2010.
For 2010 Carlsberg assumes the following:
• A slight decline in Northern & Western European markets
• A low double-digit percentage decline in the Russian market
• Continued market growth in Asia
• Continued implementation of operational and capital efficiency improvements
• Increased investments in brands and channel marketing to grow volume and value
market shares
For 2010 Carlsberg expects:
• Operating profit to be in line with that reported for 2009
• Net profit growth of more than 20% (excluding the one-off acquisition related
special
item and net income of DKK 390m)
Due to the Russian de-stocking in Q1 2010 and the chosen detailed strategy for
phasing of price increases in Russia to compensate for the significant increase
in excise duties on 1 January 2010, it is expected that earnings in Eastern
Europe will be skewed towards the second half of the year.
NORTHERN & WESTERN EUROPE
Q1 2009 Change Q1 2010
Change 200 9
DKK million Or gani c Acq ., net Cur renc y Rep ort
ed
Be ersal es(mi lli on 9.7 3% -3% - 9.7 0%
50.2
Net revenue 7,200 2% -3% 3% 7,309 2%
36,466
Operating profit 140 191% -7% 7% 4 06 191%
4,237
Operating margin (%) 1 .9 - - - - 5.6 370bp
11.6
Carlsberg improved overall market share in the region with particularly strong
improvement in the UK. There continues to be large variations in market
developments between markets. The sell-in to Easter impacted volumes slightly
positively in some markets in the region.
Organic beer volumes increased by 3%. Total volume (including non-beer products)
increased organically by 2%. Reported beer volumes were flat mainly due to the
disposal of the Braunschweig brewery in 2009.
Net revenue per hl was flat with slightly positive pricing in most markets. The
shift from on-trade to off-trade continued across markets. Organic net revenue
development was 2% for the region.
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Company announcement 7/2010
11 May 2010
Page 6 of 28
Net revenue for beer increased by 2% (+3% volumes, flat price/mix, +2% currency
and -3% from net acquisitions).
The Somersby cider was introduced in Finland and the product is now available in
Denmark, Norway, Sweden, Finland, and Belgium.
Operating profit almost tripled to DKK 406m (DKK 140m in 2009) with organic
growth being of the same magnitude. Operating margin improved substantially to
5.6% compared to 1.9% in 2009. The improvement was driven by an organic gross
profit margin improvement of 250bp and the efficiency improvements implemented
in late 2008 and throughout 2009.
EASTERN EUROPE
Q1 2009 Change
Q1 2010 Change 200 9
DKK million Or gani c Acq ., netCur renc y Rep ort ed
Beer sales 10.0 -27% 0% - 7.3 -27% 51.3
(million hl)
Net revenue 3,466 -34% 0% 3% 2,386 -31% 18,545
Operating 695 -59% 0% 5% 3 21 -54% 5,289
profit
Operating 20.1 - - - 13.4 -670 bp 28.5
margin (%)
The Eastern European markets remained challenging in Q1. However, we are seeing
a fast improving macroeconomic environment and some signs of improving consumer
sentiment. Carlsberg's Eastern European business was also affected by the
de-stocking in the Russian distribution chain in the quarter. As mentioned in
Carlsberg's Company Announcements from 17 December 2009 and 23 February 2010,
the stock building in Russia in Q4 2009 ahead of the 200% excise tax increase at
1 January 2010 affected 2009 operating profit positively by an estimated DKK
300m as distributors added approximately 1.5m hl of inventory.
The Russian market declined by an estimated 12% in the quarter. Carlsberg's
Russian market share of 39.1% in Q1 was on par with Q4 2009 (39.3%) but down
versus Q1 2009 (40.9%). However, the market share improved throughout Q1 2010.
Carlsberg's in-market-sales ("off- take") declined more than the market due to
phasing of innovations, activities and competitor's pricing decisions. Shipments
declined considerably more due to the de-stocking that was completed during Q1.
The Group's total beer volumes in Eastern Europe declined by 27% organically.
Adjusted for the de-stocking (approximately 1.5m hl), the organic volume decline
was 12%. The underlying decline was mainly in Russia while the Group's
businesses in Ukraine, Kazakhstan and Uzbekistan delivered double-digit organic
volume growth.
In line with the build-up to the peak season a number of products were launched
across the region in late Q1 and early Q2 with some of the most important being
the launches in Russia of the 20th anniversary beer Baltika 20, Baltika Draught,
Eve and the mineral water brand Life Spring.
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Company announcement 7/2010
11 May 2010
Page 7 of 28
Organic net revenue development was -34%. The Russian excise tax increase was
not fully passed on to sales prices in the quarter which had a negative effect
on net sales prices. In Russia, the price/mix effect was -9%. For the region as
a whole there was a negative price/mix of -7%.
Operating profit declined to DKK 321m (DKK 695m in 2009) with an organic
operating profit decline of 412m. The profit decline was primarily caused by the
de-stocking which had a negative impact of around DKK 300m and the lower net
sales prices. De-stocking was completed at the end of Q1 and the main part of
the 200% excise tax increase has been passed on to sales prices by the end of
April.
ASIA
Q1 2009 Change
Q1 2010 Change 200 9
DKK million Or gani c Acq ., net Cur renc y Rep ort ed
Beer sales 2.9 16% 22% - 4.0 38% 14.5
(million hl)
Net revenue 1,074 16% 5% -6% 1,234 15% 4,224
Operating 155 51% 3% -5% 2 31 49% 666
profit
Operating 14.4 - - - - 18.7 430bp 15.8
margin (%)
The Asian markets continued to grow in the quarter and the Group's organic
volume growth was 16%. Including acquisition and consolidation changes, beer
volumes grew by 38%. The volume growth was mainly driven by our businesses in
Indochina and China with particularly strong performance in Indochina.
Organic net revenue growth was 16%. High volume growth and a positive price/mix
in Indochina was a major contributor to the strong revenue growth.
Organic operating profit growth was 51% and operating profit grew to DKK 231m
(DKK 155m in 2009) with strong earnings improvement across markets. Indochina
was a main contributor to the organic operating profit growth along with
Malaysia and China. The operating profit margin improved by 430bp to 18.7% of
which 230bp was due to organic gross profit margin improvement.
CENTRAL COSTS (NOT ALLOCATED)
Central costs were DKK -230m (DKK -169m in Q1 2009). The increase was primarily
due to higher marketing costs. Central costs are incurred for ongoing support of
the Group's overall operations and strategic development and driving efficiency
programmes. In particular, they include the costs of running the headquarters
and central marketing (including sponsorships).
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Company announcement 7/2010
11 May 2010
Page 8 of 28
OTHER ACTIVITIES
In addition to beverage activities, Carlsberg has interests in the 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
(DKK -34m in 2009).
Monetising the value of redundant assets which are no longer used in operations,
including the Copenhagen brewery site, remains an important opportunity to
provide additional capital to the Group and enhance return on invested capital.
The process of finding one or more partners for the Valby site is ongoing.
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 Danish regulations governing
presentation of interim reports by listed companies.
Except for the below described changes, the interim report has been prepared
using the same accounting policies as the consolidated financial statements for
2009.
The consolidated financial statements for 2009, note 40, holds a complete
description of the accounting policies.
Changes in accounting policies for 2010
IFRS 3 "Business combinations", IAS 27 "Consolidated and Separate Financial
Statements", amendments to IAS 39 "Financial Instruments: Recognition and
Measurement " and to IFRS 2 "Share bases payment (Group Cash-settled Share-based
payment Transactions)" and IFRIC 9 have been implemented from 1 January 2010.
Except for IFRS 3 and IAS 27 the new and amended standards and interpretations
has not changed the recognition and measurement.
IFRS 3 has changed the accounting policies for cost of business combinations as
follows:
• Transaction cost directly attributable to a business combination is recognised
in income
statement and included in special items, cost. Such cost was included in the
cost of a business combination in prior years.
• Contingent consideration in a business combination is accounted for at fair
value at the
acquisition date and included in the cost of the acquisition. Subsequent
adjustments to fair value is recognised in income statement and included in
special items. Such adjustments were recognised in cost of the acquisition in
prior years.
• In a business combination achieved in stages (step acquisition) the
shareholdings
acquired before obtaining control is recognised at fair value. The fair value
adjustment is
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Company announcement 7/2010
11 May 2010
Page 9 of 28
recognised in income statement and included in special items. In prior years
each significant transaction was accounted for separately to determine the
cost and fair value acquired of identifiable assets, liabilities and
contingent liabilities acquired and the fair value adjustment was recognised
directly in equity.
• Goodwill related to the non-controlling interest's share of an acquired
business can be
recognised as part of goodwill. The recognition of such goodwill is optional
and will be chosen for each individual transaction. The choice will be
disclosed in the notes.
IAS 27 has changed the accounting for transactions with non-controlling
interests. Acquisition and disposal of non-controlling interests without the
loss of control is recognised directly in equity. Disposal of shareholdings with
the loss of control is recognised in the income statement and the remaining
shareholding is measured at fair value. The fair value adjustment is recognised
in the income statement.
In accordance with IFRS 3 and IAS 27, the comparative figures have not been
restated.
INCOME STATEMENT
In line with management's expectations, net revenue in the first quarter of 2010
totalled DKK 10,973m (DKK 11,786m in 2009), a decrease of 7% compared to the
same period of 2009. Organic development was -7% compared to 2009 and reflected
the anticipated decline in Eastern Europe due to the Russian duty increase on 1
January 2010. The negative development in Eastern Europe was partly off-set by
increased organic net revenue in Northern & Western Europe and in Asia.
Gross profit amounted to DKK 5,259m (DKK 5,408m in 2009), with organic gross
profit development being DKK -242m. There was a positive organic profit
development in Northern & Western Europe and Asia which was more than off-set by
the negative organic gross profit development in Eastern Europe. Gross profit
margin increased by approximately 200bp to 47.9%.
Sales and distribution expenses were DKK 3,596m, a decrease of DKK 81m compared
to the first quarter of 2009. Administrative expenses amounted to DKK -958m (DKK
-969 in the first quarter of 2009). In total, these cost lines were reduced by
DKK 92m in spite of a double digit percentage increase in marketing costs.
Other operating income, net, was DKK 14m (DKK 15 in 2009). The Group's share of
the net profit of associates was DKK 16m against DKK 11m in 2009.
Operating profit before special items was DKK 735m against DKK 788m in 2009.
Beverage activities generated a profit of DKK 728m, a decrease of DKK 93m.
Operating profit in Eastern Europe declined by DKK 374 as lower volumes and
lower net sales prices affected profits whereas the operating profit in Northern
& Western Europe almost tripled to DKK 406m and the Asian region delivered
operating profit growth of DKK 76m. Group operating margin was 6.7% on par with
2009.
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Company announcement 7/2010
11 May 2010
Page 10 of 28
Net special items amounted to DKK 349m against DKK -107m in 2009, and relate to
costs in connection with the restructuring measures implemented across the
Group. Special items are positively affected by a fair value revaluation of DKK
390m relating to the shareholding in Xinjiang Wusu Beer Group held before
obtaining control in Q1 2010 (step acquisition), cf. note 7.
Net financial items amounted to DKK -515m against DKK -904m in 2009. Interest
costs accounted for DKK -495m, compared with DKK -595m in 2009 and reflect the
lower net debt following the significant deleveraging in 2009. Other net
financial items were DKK -20m (DKK - 309m in 2009). The change is primarily due
to lower currency losses and fair value adjustments compared to 2009.
Tax totalled DKK -48m against DKK +65m in 2009.
Consolidated profit was DKK 521m, against DKK -158m in Q1 2009.
Net profit was DKK 471m, against DKK -212m in 2009.
STATEMENT OF FINANCIAL POSITION
At 31 March 2010, Carlsberg had total assets of DKK 144,718m (DKK 139,132m at 31
March 2009 and DKK 134,525m as at 31 December 2010). The increase primarily
relates to currency adjustments and impact from the acquisition of Xinjiang Wusu
Beer Group. Compared to 31 December 2010, total assets have also increased due
to stock buildings prior to the peak season.
Assets
Intangible assets totalled DKK 87,542m against DKK 81,421m at 31 March 2009. The
increase is mainly related to foreign exchange impact.
Property, plant and equipment totalled DKK 32,975m (DKK 32,976m at 31 March
2009).
Financial assets amounted to DKK 6,365m (DKK 5,709m at 31 March 2009). The
increase is primarily a result of the establishment of the distribution joint
venture Nordic Getränke GmbH in Germany.
Current assets totalled DKK 17,756m against DKK 18,879m at 31 March 2009, a
decrease of DKK 1,123m as a result of both lower inventories and lower
receivables.
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Company announcement 7/2010
11 May 2010
Page 11 of 28
Liabilities
Total equity was DKK 65,187m, of which DKK 59,640m can be attributed to
shareholders in Carlsberg A/S and DKK 5,547m to minority interests.
The increase in equity compared to 31 March 2009 was DKK 8.9bn and is due to
currency adjustments of approximately DKK 5.8bn, profit for the period (DKK
4.8bn), payment of dividends to shareholders (DKK -0.9bn), and hedging
instruments (DKK -0.4bn).
Total liabilities were DKK 79,531m (DKK 82,874m at 31 March 2009). Non-current
liabilities were reduced by DKK 4,983m while current liabilities were DKK
26,471m, up DKK 1,965m compared to 31 March 2009.
CASH FLOW
Free cash flow improved by DKK 530m to DKK -549m.
Cash flow from operating activities in the first quarter of 2010 was DKK -110m
against DKK -233m for the same period of 2009. Operating profit before
depreciation and amortisation was DKK 1,659m against DKK 1,715m in 2009.
The change in working capital was DKK -1,212m (DKK -1,253m in 2009). Trade
working capital to net revenue (MAT) was 2.3% at the end of Q1 2009 compared to
6.3% at the end of Q1 2009 reflecting the focus on reducing the average trade
working capital throughout the year.
Paid net interest etc. amounted to DKK -333m against DKK -506m for the same
period of 2009, reflecting the lower net debt.
Cash flow from investing activities was DKK -439m against DKK -846m in the first
quarter of 2009. The decrease is essentially attributed to lower operating
capital expenditures of DKK -132m (-17%) compared to the first quarter of 2009,
a change in financial investments of DKK -218m which is mainly explained by the
acquisition of shares in Xinjiang and positive net cash flow from real estate
activities of DKK 353m in 2010.
FINANCING
At 31 March 2010, the gross interest-bearing debt amounted to DKK 42,011m and
net interest- bearing debt amounted to DKK 37,102m. The difference of DKK 4,909m
is other interest-bearing assets, including DKK 4,028m in cash and cash
equivalents.
Of the gross interest-bearing debt, 91% (DKK 38,347m) is long term, i.e. with
maturity more than one year from 31 March 2010, and consists primarily of
facilities in EUR.
Committed credit facilities are more than sufficient to refinance maturing
short-term debt.
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Company announcement 7/2010
11 May 2010
Page 12 of 28
Approximately 57% is fixed interest (fixed-interest period exceeding one year).
FINANCIAL CALENDAR FOR THE FINANCIAL YEAR 2010
The financial year follows the calendar year, and the following schedule has
been set for 2010:
17 August 2010 Interim results for Q2 2010
9 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
interim and annual financial statements.
DISCLAIMER
This company announcement contains forward-looking statements, including
statements about the Group's sales, revenues, earnings, spending, margins, cash
flow, inventory, products, actions, plans, strategies, objectives and guidance
with respect to the Group's future operating results. Forward-looking statements
include, without limitation, any statement that may predict, forecast, indicate
or imply future results, performance or achievements, and may contain the words
"believe", "anticipate", "expect", "estimate", "intend", "plan", "project",
"will be", "will continue", "will result", "could", "may", "might", or any
variations of such words or other words with similar meanings. Any such
statements are subject to risks and uncertainties that could cause the Group's
actual results to differ materially from the results discussed in such
forward-looking statements. Prospective information is based on management's
then current expectations or forecasts. Such information is subject to the risk
that such expectations or forecasts, or the assumptions underlying such
expectations or forecasts, may change. The Group assumes no obligation to update
any such forward-looking statements to reflect actual results, changes in
assumptions or changes in other factors affecting such forward-looking
statements. Some important risk factors that could cause the Group's actual
results to differ materially from those expressed in its forward-looking
statements 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, increasing industry
consolidation, competition from other breweries, the availability and pricing of
raw materials and packaging materials, cost of energy, production- and
distribution-related issues, information technology failures, breach or
unexpected termination of contracts, price reductions resulting from
market-driven price reductions, market acceptance of new products, changes in
consumer preferences, launches of rival products, stipulation of market value in
the opening balance sheet of acquired entities, litigation, environmental issues
and other unforeseen factors. New risk factors can arise, and it may not be
possible for management to predict all such risk factors, nor to assess the
impact of all such risk factors on the Group's business or the extent to which
any individual risk factor, or combination of factors, may cause results to
differ materially from those contained in any forward-looking statement.
Accordingly, forward-looking statements should not be relied on as a prediction
of actual results.
www.carlsberggroup.com
Company announcement 7/2010
11 May 2010
Page 13 of 28
MANAGEMENT STATEMENT
The Board of Directors and the Executive Board have discussed and approved the
interim report of the Carlsberg Group for the period 1 January - 31 March 2010.
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 31 March 2010, and of the
results of the Carlsberg Group's operations and cash flow for the period 1
January - 31 March 2010.
Further, in our opinion the management's review (p. 1-12) 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, 11 May 2010
Executive Board of Carlsberg A/S
Jørgen Buhl Rasmussen Jørn P. Jensen
Supervisory Board of Carlsberg A/S
Povl Krogsgaard-Larsen Jess Søderberg Hans Andersen
Chairman Deputy Chairman
Flemming Besenbacher Richard Burrows Kees van der Graaf
Niels Kærgård Ulf Olsson Bent Ole Petersen
Peter Petersen Lars Stemmerik Per Øhrgaard
www.carlsberggroup.com
Company announcement 7/2010
11 May 2010
Page 14 of 28
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 Debt and credit 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 other beverage brands. The flagship brand -
Carlsberg - is one of the best-known beer brands in the world and the Baltika,
Carlsberg, and Tuborg brands are among the six biggest brands in Europe.. More
than 43,000 people work for the Carlsberg Group, and its products are sold in
more than 150 markets. In 2009 the Carlsberg Group sold more than 135 million
hectolitres of beer, which is about 40 billion bottles of beer annually.
Find out more at www.carlsberggroup.com.
www.carlsberggroup.com
Company announcement 7/2010
11 May 2010
Page 15 of 28
INCOME STATEMENT
DKK Q1 Q1
mill-
on
2010 2009
2009
N- rev 10, 973 11,7 86
59,382
t en-
e
Cost of sales -5,714 -6,378
-30,197
G- pr- 5,25 9
5,408 29,185
o f
ssit
Sales and distribution expenses -3,596 -3,677
-15,989
Administrative expenses -958 -969
-3,873
Othe r op era tin g 14 15
-45
S- prof it prof it prof it prof it 16 11
112
ar
e
Operating profit before special items 735 788
9,390
Spec ia l item s, 349 -107
-695
Financial income 502 410
609
Financial expenses -1,017 -1,314
-3,599
P- be- tax tax tax tax 569 -223
5,705
o- ore
i
t
Corporation tax -48 65
-1,538
Con prof prof it prof prof it 521 -158
4,167
so it it
lid
ated
Attributable to:
Non-controlling interests 50 54
565
Shar eho lde in in in 471 -212
3,602
rs
E- persh sh are: sh sh are:
r are: are:
n-
n
gs
Earnings per share 3.1 -1.4
23.6
Earnings per share, diluted 3.1 -1.4
23.6
www.carlsberggroup.com
Company announcement 7/2010
11 May 2010
Page 16 of 28
STATEMENT OF COMPREHENSIVE INCOME
Q1 Q1
DKK million 2010 2009 2009
Profit for the period 521 -158 4,167
Othe r com preh ens ive
Foreign exchange adjustments of foreign 5,875 -3,761 -3,1 35
entities
Value adjustments of hedging instruments -639 - 62 23
Value adjustments of securities - - 1
Retirement benefit obligations -16 6 -382
Shar e-b ase d paym ent 14 11 -
Value adjustment of step acquisition of - - 31
subsidaries
Other -3 - -6
Tax on other comprehensive income 142 25 39
Othe r com preh ens ive 5,3 73 -3,781 -3,4 29
Total comprehensive income 5,894 -3,939 738
Total comprehensive income attributable to:
Non-controlling interests 473 -354 171
Shareholders in Carlsberg A/S 5,421 -3,585 567
www.carlsberggroup.com
Company announcement 7/2010
11 May 2010
Page 17 of 28
STATEMENT OF FINANCIAL POSITION
DK K mi lli on
31 31 31
M- Ma De
r. r. c.
2- 2- 20
1 0 09
0 9
Assets
Intangible assets
87 8- 8
,5- ,- 1-
2 21 6-
1
Property, plant and equipment
3 3- 3
2,- ,- 1-
75 76 8-
5
Financial assets
6 5 5
,3- ,7- ,-
5 9 50
Total non-current assets
12- 12- 11
,8- ,1- 9-
2 6 28
6
Inv ent ori es
- 1 1- 9
- 0- ,- ,-
d77 96 99
0
Other receivables etc.
2 4 2
,9- ,1- ,-
8 9 08
Cash and cash equivalents
4 3 2
,- ,0- ,-
28 4 34
Tot al
- 1- 1 1-
- , 8- ,-
r7- 8- 41
- 6 9
-
-
t
Assets held for sale
80 1 3
47 88
Total assets
1- 13- 13
4- ,1- 4-
7- 2 51
8 5
Eq uity
-
-
d
l
-
-
-
i
-
i
-
-
-
s
Equity, shareholders in Carlsberg A/S
5 5- 5
9,- ,- 4-
40 02 8-
9
Non-controlling interests
5 4 4
,5- ,8- ,-
7 6 60
Total equity
65 5- 5
,1- ,- 9-
7 58 4-
9
Bo rrow ing s
3 4- 3
8- ,- 6-
34 77 0-
7 5
Deferred tax, retirement benefit obligations etc.
14 1- 1
,6- ,- 3-
1 24 9-
0
Total non-current liabilities
5 5- 5
3,- ,- 0-
18 01 0-
5
Borrowings
3 4 3
,- ,9- ,-
64 7 22
Tra de
- 8, 6 7
- 0- ,6- ,-
- 5 7 29
-
b
-
-
s
Deposits on returnable bottles and crates
1 1 1
,- ,3- ,-
17 0 61
Ot her
- 1 1- 1
u3- ,- 2-
- 45 02 3-
- 5 8
e
-
t
Total current liabilities
2 2- 2
6,- ,- 4-
71 06 9-
0
Liabilities associated with assets held for sale
42 3 5
67 1
Total equity and liabilities
14- 1 1-
,7- 3- 4,
8 ,- 5-
32 5
www.carlsberggroup.com
STATEME
DKK m nioill
Equity at 1 Januar
Total comprehensi
Pr of it fo r th e pe ri od Other
comprehensive nic Foreign exchange ad
meo
justments
Value adjustments of hedging
Retirement benefit obligations
Share-based payment
Other
Tax on other comprehensive income
Other comprehensive income
Total comprehensive income for the period
Acquisition/disposal of treasury shares
Dividends paid to shareholders
s in equity
Equity at 31 March 2010 3,051
-
-
e for the period
Pr of it fo r th e pe ri od -
Shar Acquisition of m
gsninrea
deniatRe
stnme
-tsevin
S-fA-
stnme
-tsujad
eluair vaF
noitla
-snatr
ycnerrCu
latipae charS
inority interests and entities
e cap ital
Curre
tr
- -
tsevin tsevin
a
stnme
-tsujad
eluair vaF
ns ns
lati
- -
on on
-3,353 -
sredolehrahS sredolehrahS
Share-based payment - - - -
Tax on other comprehensive income - 25
81 -
Dividends paid to shareholders - - - -
- - - -
n equity - -2,909 -481 -
Equity at 31 March 2009 3,051 -9,609 -2,020 -
esvresed ran
latipa clatTo
servesre
latTo
gsninrea
deniatRe
stnme
-
ytqui ealotTstseretni
gnillortnco
-nNo
esvresed ran
59,980
Acquisition of minority interests and entities
servesre
latTo
-
8
-
-
-
-
Total changes i
939,3-354-5,583-,5853-
-
Other comprehensive income
Total comprehensive income for the
period
187,3-408-3,373-,3733-17
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Value adjustments of hedging
instruments
Retirement benefit obligations
78165,,5475059,64,5895663,450146501,1-0-
5,5-
DKK million
Equity at 1 January 2009 3,051 -6,700
Total comprehensive incom
0920h cra M31S/ Agerbslra Cni
Total change
1020h cra M31S/ Agerbslra Cni
sredolehrahS
.com pu.carlsberggrowww
STATEMENT OF CASH FLOWS
Operating profit before special items
for
im pai
rme nt
Operating profit before depreciation, amortisation and
im pai
rme nt
for
Change
in
working
capital
Restru-
turing
costs
paid
Intere-
t etc.
receiv-
d
Interest
etc.
paid
Corpor-
tion
tax
paid
from operating activities
Acquisition of property, plant and equipment and
intangi-
le
assets
Disposal of property, plant and equipment and
intangi-
le
assets
Change
in
trade
loans
Total
operat-
onal
invest-
ents
Aquisition and disposal of entities, net
Acquisition of associated companies
Disposal of associated companies
Acquis-
tion of
financ-
al
assets
Dispos-
l of
financ-
al
assets
Change in financial receivables
Dividen-
s
received
Total
financ-
al
invest-
ents
Other investments in property, plant and equipment
othe r
eq-
pro pert
i
y,
pm-
n t
Total
other
activi-
ies2
Cash flow from investing activities
fl ow
in
Non-co-
trolli-
g
intere-
ts
External
financi-
g
fr om fi nanc in g act ivi tie s
Net cash
flow
Cas h an
-
peri od
d cash
-
-
i
-
d
Currency translation adjustments
Cash and cash equivalents at period-end3
los ses
in
Spec ia
l item
s .
2 Other activities cover real estate and assets under construction, separate
from beverage activities, including
costs of construction contracts. 3 Cash and cash equivalent less bank
overdrafts.
www.carlsberggroup.com
Company announcement 7/2010
11 May 2010
Page 20 of 28
NOTE 1
Segment reporting by region (beverages)
DKK million Q1 Q1
2010 2009 2009
Beer sales (pro rata, million hl)
Northern & Western Europe 9.7 9.7 50.2
Eastern Europe 7.3 10.0 51.3
Asia 4.0 2.9 14.5
Total 21.0 22.6 116.0
Net revenue (DKK million)
Northern &Western Europe 7,309 7,200 36,466
Eastern Europe 2,386 3,466 18,545
Asi a 1,23 4 1,074 4,224
Not a lloca ted 44 46 147
Beverages, total 10,973 11,786 59,382
Opera ting profi t before
and special items (EBITDA - DKK million)
Northern & Western Europe 905 662 6,366
Eastern Europe 668 1,025 6,638
Asia 288 207 874
Not a lloca ted -212 -149 -655
Beverages, total 1,649 1,745 13,223
Opera ting profi t befor e speci al item s mil lion)
(EBIT Western Europe
Northern & 406 140 4,237
Eastern Europe 321 695 5,289
Asia 231 155 666
Not a lloca ted -230 -169 -732
Beverages, total 728 821 9,460
Opera ting profi t margi n (%)
Northern &Western Europe 5.6 1.9 11.6
Eastern Europe 13.4 20.1 28.5
Asia 18.7 14.4 15.8
Not a lloca ted … … …
Beverages, total 6.6 7.0 15.9
www.carlsberggroup.com
Company announcement 7/2010
11 May 2010
Page 21 of 28
NOTE 2
Segment reporting by activity
DKK million -
-
1
1
-
-
-
0
-
-
0
9
Bever- - Bever-
-
-
-
-
-
-
-
r
r
age s - Tota l ag es
- Total
c
-
-
t
-
-
v
-
-
-
-
t
i
-
-
-
s
s
Net 10, 973 - 10,973 11,786
- 11,786
Operating profit before special items 728 7 735 821
- 788
-
3
Sp eci al - 349 - 349 -10 7
- -107
t
-
-
-
,
Financial items, net - 507 - - 515 -91 5
1 -904
8
1
Profit before tax 570 - 569 -20 1
- -223
1
-
2
Corporation tax - 48 - -48 59
6 65
Con so lid ated 522 - 521 -14 2
- -158
1
-
6
Attributable to:
Non-controlling interests 50 - 50 54
- 54
Shareholders in Carlsberg A/S 472 - 471 -19 6
- -212
1
-
6
DKK million
-
-
-
9
Bever- -
-
-
-
r
ages - Total
-
-
i
-
-
-
i
-
s
Net 59, 382 - 59,382
Operating profit before special items 9,460 - 9,390
-
0
Sp eci al - - 262 - - 695
t -
- -
- 3
-
,
Financial items, net - 2,980 - -2,99 0
-
0
Profit before tax 6,218 - 5,705
-
-
3
Cor po rat ion - -1, 561 - -1,53 8
- 3
x
Con so lid ated 4,65 7 - 4,167
-
-
0
Attributable to:
Non-controlling interests 565 - 565
Shareholders in Carlsberg A/S 4,092 - 3,602
-
-
0
www.carlsberggroup.com
Company announcement 7/2010
11 May 2010
Page 22 of 28
NOTE 3
Segment reporting by quarter
DKK
millionQ2Q3Q4Q1Q2Q3Q4Q1
2008 2008 2008 2009 2009 2009 2009
2010
Net revenue
Northern and Western 10,776 10,8 04 8,91 5 7,20010,7 05 10,1108,45
17,309
Europe
Eastern Europe 5,888 6,661 4,61 6 3,466 5,841 5,1354,10
32,386
Asia 828 932 984 1,074 1,049 1,0601,04
11,234
Not a lloca ted 49 46 9 46 28 52 21 44
Beverages, total 17,541 18,4 4314,52 4 11,78617,6 23 16,35713,616
10,97 3
Other activities - - - - - - - -
Tot al 17, 541 18,4 4314,52 4 11,78617,6 23 16,35713,616
10,97 3
Operating profit before
special items
Northern and Western 1,570 1,401 847 140 1,740 1,700 657 406
Europe
Eastern Europe 1,388 1,637 798 695 1,952 1,5501,09 2 321
Asia 117 145 125 155 167 197 147 231
Not a lloca ted -199 -243 -36 3 -169 -184 -108 -271
-230
Beverages, total 2,876 2,940 1,40 7 821 3,675 3,3391,62 5 728
Other activities 274 114 -21 -33 -20 -35 18
7
Total 3,150 3,054 1,38 6 788 3,655 3,3041,64 3 735
Sp ecia l item net -91 -169-1,3 44 -107 - 84 -180 -324 349
s,
Financial items, net -812 -893-1,2 81 -904 -546 -767 -773
-515
Profit before tax 2,247 1,992-1,2 39 -223 3,025 2,357 546 569
Cor po rat ion tax -659 -583 1,52 2 65 -878 -683 -42 -48
Con so lid ated prof it 1,58 8 1,409 283 -158 2,147 1,674 504
521
Attributable to:
Non-controlling interests 173 188 172 54 207 183 121 50
Sh areho lde rs in Car 1,41 5 1,221 111 -212 1,940 1,491 383
471
lsbe rg
A/S
www.carlsberggroup.com
Company announcement 7/2010
11 May 2010
Page 23 of 28
NOTE 4
Special items
DKK million 3 mths 3 mths
2010 2009 2009
Sp ecia l item s,
Value adjustment on step acquisition of 390 - -
subsidiary
Total 390 - -
Special items, cost:
Gai n on sa le of Bra unsc hwe ig Brew ery
and fig hter bran d act ivit ie s,
Carlsberg Deutschland (2008: Impairment of
brewery)
- - 49
Impairment of finite brands - - - 37
Restructuring of Leeds Brewery, Carlsberg - 1 - - 67
UK
Relocation costs, termination benefits and
impairment of non-current as set s in conn
ect ion wit h new pr oduc tion st ruct ure
in Den ma rk
- 1 -21 - 40
Termination benefits and impairment of
non-current assets
in co nnect ion wi th new prod uct ion st - - - 20
ruc tur e at Sine bryc hoff , Fin lan d
Provision for onerous malt contracts,
including reversal of unused provision
from previous year
2 - -175
Termination benefits etc. in connection
with Operational
Excellence Programmes - 4 - - 31
Ter mi nati on be nefi ts
logistic and administration, Carlsberg UK -1 1 -17 - 34
Ter mi nati on be nefi t - 5 -11 - 56
Ter mi nati on be nefi t
Brasseries Kronenbourg, France - -8 -95
Ter mi nati on be nefi t - - - 72
Res tr uct urin g, - - -
Other restructuring -1 7 -33 -100
Restructuring, Mythos Greece - 4 - -
Integration costs related to acquisition - -17 - 17
of part of the activities in S&N Total
-4 1 -107 -695
Sp ecia l item s, 3 49 -107 -695
www.carlsberggroup.com
Company announcement 7/2010
11 May 2010
Page 24 of 28
NOTE 5 (PAGE 1 OF 2)
Debt and credit facilities
31 Mar. 2009
DKK million 31 March DKK
mil lio
2010 n
Non-current borrowings:
Issued bonds 13,570
7,278
Bank borrowings 22,326
12,1 22
Mortgages 1,988
913
Lease liabilities 14
53
Other non-current borrowings 449
184
Tot al 38, 347
20,5 51
Current borrowings:
Issued bonds -
Mortgages 893
405
Bank borrowings 2,429
1,662
Lease liabilities 15
20
Oth er - 327
944
-
r
-
-
-
t
Total 3,664
3,031
Total non-current and current borrowings 42,011
23,5 82
Cash and cash equivalents -4,028
Net financial debt 37,983
Other interest bearing assets -881
Net interest bearing debt 37,102
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 2,914m.
www.carlsberggroup.com
Company announcement 7/2010
11 May 2010
Page 25 of 28
NOTE 5 (PAGE 2 OF 2)
Debt and credit facilities
DKK million
Tim e to mat uri ty for non -cur ren t borr owi ngs 31 Ma rch 201 0
1-2 years 2-3 years 3-4 years 4-5 > 5 years > 5 years Total
years
1 ,954 1 ,674 - 7,397 2,545 2,545 13,570
712 2 0,230 2 98 3 41 745 745 22,32 6
- - - - 1,988 1,988 1,98 8
446 - - 17 - - 463
3,112 21,904 298 7,755 5,278 5,278 38,347
Net financial Interest*
Debt * Flo atin g Fixe dFloa tin g Floa tin g Fix ed
% %
32,420 1 2,880 19 ,540 40% 40% 60%
1 ,936 1,565 3 71 81% 81% 19%
1 ,579 1,579 - 100% 100% 0%
2 ,399 2,399 - 100% 100% 0%
-351 -2,0 25 1,674 N/A N/A N/A
3 7,983 16,3 98 21,585 43% 43% 57%
DKK million
Comm ite d cre dit fac ili tie s* 31 Mar c h 2010
Less than 1 year 8,153
1 to 2 years 3,652
2 to 3 years 25,982
3 to 4 years 298
4 to 5 years 7,755
Mo re than 5 ye ars 5,2 78
Total 51,118
Short term 8,153
Lon g ter m 42,9 65
* Defined as short term borrowings and long term committed credit facilities.
www.carlsberggroup.com
Company announcement 7/2010
11 May 2010
Page 26 of 28
NOTE 6
Net interest-bearing debt
DKK million Q1 Q1
20 10 200 9 20 09
Net interest-bearing debt is calculated as follows:
Non-current borrowings
38,347 45,3 77 36,075
Current borrowings
3,664 4,967 3,32 2
Gr oss int eres t-b eari ng 42,
011 50,3 44 39,397
Ca sh and -4,
028 -3,034 -2,734
Loans to -1
3 -3 -36
On-trade loans
-2,125 -2,300 -2,143
less non- inte res t-b ear ing-
1,32 4 1,460 1,36 8
-
r
-
i
-
n
Oth er rec eivab les -1,
553 -2,016 -1,533
less non- inte res t-b ear ing-
1,48 6 1,388 1,36 0
-
r
-
i
-
n
Net interest-bearing debt
37,102 45,8 39 35,679
Changes in net interest-bearing debt:
Net interest-bearing debt at beginning 35,679 44,1
56 44,156
of period
Ca sh flow fr om ope rat ing act iv iti es Cash flow from investing 110
233 -13,631
activities
439
846 3,08 2
Dividend to shareholders and minority 547
536 846
inte res ts
Acquisition of minority interests -
54 286
Acquisition/disposal of treasury shares 18
- 6
Acquisition of entities, net 14
- 45
Ca pita l -
- -
Change in interest-bearing lending 188
55 -
Effects of currency translation - 58
-22 562
Other 165
-19 327
Tot al 1,42 3
1,683 -8,477
Net interest-bearing end of period 37,102 45,8
39 35,679
www.carlsberggroup.com
Company announcement 7/2010
11 May 2010
Page 27 of 28
NOTE 7
Acquisition of entities
Acquired Total
Main ownership Carlsberg
Name of acquired entities activity interest interest
Wusu-Xinjiang Brewery 4.83 % 64. 95%
Fair value of consideration paid for acquired interests 228
Fair value of previously held interests
660
Fair value of non-controlling interests 385
Fair value of entity acquired in stages, total 1,273
Carrying Fair
amount prior value at
DKK million to acquisition acquisition
Intan gible - 8 8 222
-
-
e
-
s
Property, 3 35 3 35
plant &
equipment
Investments, 1 8 18
excl. of
deferred tax
Inv ent ori 1 25 1 24
es
Loans & 6 6
receivables,
Cash & cash 1 3 13
equivalents
Provisions, - 132 -132
excl. of
deferred tax
Deferred tax - -27
asset &
liability, net
Borrowings - 92 -92
Ba nk - - -
-
-
r
-
-
-
f
-
s
Tra de - - 316 -316
-
-
-
b
-
-
s
Equity, 4 5 151
Carlsberg's
share
Fair value of 1, 273
entity
acquired in
stages, total
Goodwi ll
total
1, 122
Goodwill is attributable to:
Carlsberg interests 78 2
Non-controlling interests 34 0
Goodwi ll total 1, 122
Elements of cash consideration paid:
Cash outflow 22 8
Cash and cash equivalents, acquired* - 5
Total 22 3
*Acquired cash only comprise the additional consolidated share (approx. 40%) in
the step acquisition due to change from pro-rata consolidation to full
consolidation
In Q1 2010, Carlsberg gained control of Xinjiang Wusu Beer Group through a
business combina- tion achieved in stages (step acquisition). The shareholdings
held before obtaining control has been recognised at fair value with the fair
value adjustment, DKK 390m, recognised in special items. The purchase price
allocation of the fair value of identified assets, liabilities and contingent
liabilities in the acquisition is still ongoing and has not yet been completed.
Therefore, adjustments to all items in the opening balance sheet may be made.
Accounting for the acquisition will be completed within the 12 month period
required in IFRS 3.
www.carlsberggroup.com
Company announcement 7/2010
11 May 2010
Page 28 of 28
This step acquisition is a natural step for Carlsberg and in line with the
strategy of obtaining full control of key operating activities. The preliminary
calculation of goodwill represents staff competencies as well as the positive
growth expectations. Goodwill related to the non- controlling interest's share
of Xinjiang Wusu Beer Group has been recognised as part of goodwill.
The purchase price on the acquisition of part of the activities in S&N will be
adjusted depending on the final allocation of debt according to agreement.
www.carlsberggroup.com
