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 13/2010
9 November 2010
Page 1 of 31
Interim results as at 30 September 2010
Strong performance continues
• The Carlsberg Group achieved 18% operating profit growth to DKK 9.1bn for the
first nine
months of 2010. Group operating margin continued to improve and grew by 270bp
to 19.6%. In 2010, the Group has increased its spend behind brands and
innovations, resulting in improved market share in large parts of the
business.
• The market trends in Northern & Western European improved, compared to 2009,
but
consumer dynamics remain challenging and the overall beer market declined
slightly. The market trends in all Eastern European markets improved, and all
markets grew in Q3, driven by improving macroeconomics, improved consumer
sentiment, and warm weather. The beer markets in Asia continued the growth
trend at mid to high-single-digit percentages on average.
• In Northern & Western Europe, the Group's market share improved after flat
market share
development in recent years. In Eastern Europe, especially the Ukrainian
business continued its strong market share performance. The Russian market
share declined by 80bp1 for the nine months, but the market share in September
was the highest recorded for the year and the same as September 2009. In Asia,
market share gains were once again achieved across most markets.
• For the nine months, beer volumes increased by 1% to 89.7m hl with an organic
volume
development of -1% (-2% for total beverages). Excluding the Russian destocking
effect in Q1, beer volumes grew organically by an estimated 1%.
• In Q3, Group organic beer volume grew by 3% with volume growth in all regions.
• Net revenue increased by 2% to DKK 46.7bn (DKK 45.8bn in 2009) with a -2%
organic net
revenue development. Price/mix was flat. Q3 net revenue increased by 8% to DKK
17.7bn (DKK 16.4bn in 2009) with organic development of 2%.
1 Based on Nielsen retail audit data replacing Business Analytica data
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Company announcement 13/2010
9 November 2010
Page 2 of 31
• Operating profit increased by 18% to DKK 9,149m (DKK 7,747m in 2009) with 8%
organic
operating profit growth in the beverage activities. Currency movements
impacted positively by 9%, mainly related to the recovery of the Russian
rouble from 2009. Q3 operating profit was DKK 4,167m (DKK 3,304m in 2009) with
a 15% organic growth in the beverage activities. All regions delivered
double-digit organic operating profit growth in Q3.
• Net profit was DKK 5,050m (DKK 3,219m in 2009). This includes the non-cash,
non-taxable
income in special items of DKK 390m, booked in Q1, related to new acquisition
accounting regulation. Excluding this one-off item, net profit grew by 45%.
• By the end of September 2010, all DKK 1.3bn synergies from the Scottish &
Newcastle
acquisition have been delivered.
• Free cash flow was DKK 5,815m (DKK 6,116m in 2009) and net interest bearing
debt was
DKK 31.8bn (DKK 38.5bn end Q3 2009).
• The Carlsberg Group expects an operating profit for 2010 of more than DKK 10bn
compared
to previous expectations of operating profit at around DKK 10bn. In Q4, the
Eastern Europe region is expected to deliver significantly lower earnings than
last year due to comparables (positively impacted last year by stocking in
Russia), increased input costs and phasing of sales and marketing expenses
this year. Net profit growth expectations for 2010 are kept unchanged at
around 40% (excluding the DKK 390m one-off acquisition related special item).
Commenting on the results, CEO Jørgen Buhl Rasmussen says: “We entered the year
with clear plans of improving our market positions through increased focus on
the top-line while at the same time executing on our efficiency agenda. With the
strong performance, the Group is well on track to deliver on these plans for
2010. We are moving towards our medium-term margin target and reducing the
profitability gap to other fast-moving-consumer-goods companies. While we see
signs of market recovery in the important Eastern Europe region, market
conditions remain challenging in several Northern & Western European markets and
looking forward, we will be impacted by rising input costs and will therefore
have to increase sales prices.”
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
Ben Morton, +45 3327 1417 / +45 2278 1417
www.carlsberggroup.com
Company announcement 13/2010
9 November 2010
Page 3 of 31
KEY FIGURES AND FINANCIAL RATIOS
DKK mi lli on
Q3 Q3 9 mt hs 9 mth s
2010 2009 2010 2009 2009
Total sales volum
es
(mil
lion
hl)
Be er
40.8 3 5.8 106.9 9 8.7 137.0
Other beverages
6.5 6 .2 17.2 1 7.0 22.2
Pro ratavolu- volum-
es s
(mil- (mill-
ion on hl)
hl)
Be er
33.9 3 2.0 89.7 8 8.9 116.0
Other beverages
5.5 5 .5 14.7 1 5.2 19.8
In come st at st at
emen emen t
t
Net revenue
1 7,708 16,357 46,6 55 45,766 59,3 82
Operating profit before 4 ,167 3,30 4 9, 149 7,74 7 9,390
special items
Sp eci it ems,
-4 62 - 180 - 108 - 371 - 695
al
Financial items, net -725 - 767 -1,5 42 - 2,217 - 2,990
Profi t before
2 ,980 2,35 7 7, 499 5,15 9 5,705
Corporation tax
-804 - 683 -1,9 19 - 1,496 - 1,538
Con so lid ated
2 ,176 1,67 4 5, 580 3,66 3 4,167
Attributable to:
Non-controlling interests 2 29 183 5 30 444 565
Sh are hol der s Car 1 ,947 1,49 1 5,
050 3,21 9 3,602
lsb er
g A/S
Statement of financial
position
Total asset s
- - 141,586 135, 067 134,515
Invested capital
- - 114,000 111,839 109,538
Interest-bearing debt, net - - 31,844 38,533 35,6 79
Eq uity sh sh - - 62,037
52,786 54,8 29
, areh areh
olde olde
rs rs
Statement of cash flows
Cash flow from operating 4, 064 2,48 9 8, 812 8,45 7 13,6 31
activities
Cash flow from investing -692 - 473 -2,9 97 - 2,341 - 3,082
activities
Free cash flow
3 ,372 2,01 6 5, 815 6,11 6 10,5 49
Financi al ratios
Operating margin
% 23.5 2 0.2 19.6 1 6.9 15.8
Return on average invested - - 9.3 7 .8 8 .2
capital (ROIC)
Equity ratio
% - - 47.5 4 3.1 44.2
Debt/equity ratio - - 0.5 0 .7 0 .6
(financial gearing)
Interest cover
x - - 5.9 3 .5 3 .1
Stock market ratios
Ea rnin gs per sha re (E 12.8 9 .8 33.1 21.1 2 3.6
PS) Cash flow from
operating activities per
share
- 26.6 1 6.3 57.8 5 5.4 89.3
-
K
(CFPS)
Free cash flow per share 22.1 1 3.2 38.1 4 0.1 69.1
(FCFPS)
Sh are pri ce (B- 5 70
369 384
shar
es)
Number of shares 152, 542 152,555 152, 542 152,553
(period-end)
Num ber of
152,552 152, 542 152,550 152, 551 152,550
shar es)
www.carlsberggroup.com
Company announcement 13/2010
9 November 2010
Page 4 of 31
BUSINESS DEVELOPMENT
Change Change
DKK million 2009 Organic Acq., net FX 2010 Reported
Q3
Beer sal es (mi lli on hl) 32.0 3% 3% 3 3.9 6%
Net revenue 16,357 2% -1% 7% 17,708 8%
Operating profit 3,304 16% 1% 9% 4, 167 26%
Operating margin (%) 20.2 2 3.5 330b p
9 mths
Beer sales (million hl) 88.9 -1% 2% 89 .7 1%
Net revenue 45,766 -2% -1% 5% 46,655 2%
Operating profit 7,747 9% 0% 9% 9, 149 18%
Operating margin (%) 16.9 1 9.6 270b p
The Group delivered strong performance in the nine months. The Group gained
market share in a large part of the business, driven by the increased sales and
marketing focus. Margins improved significantly in the nine months.
Reported beer volumes increased by 1% to 89.7m hl (88.9m hl in 2009) with an
organic development of -1%. The main growth driver was the Asian business with
16% organic beer volume growth. Northern & Western Europe beer volumes grew
organically by 1%. Eastern European volumes declined organically by 7% due to
destocking in Russia in Q1 and the substantial price increases following the
excise duty increase in January. Adjusting for the destocking impact of around
1.5m hl, the Group's organic beer volume growth would have been an estimated 1%.
Q3 organic beer volume growth was 3%. All three regions reported organic beer
volume growth for the quarter with particularly strong performance in Asia. In
achieving this growth, several markets in Northern and Eastern Europe were
positively impacted by particularly favourable warm weather.
Pro rata Group volumes of other beverages for the nine months were 14.7m hl
(15.2m hl in 2009). The decline was mainly driven by the strikes in Denmark and
Finland as well as portfolio optimisations in a few markets. As a consequence,
total beverage volume was flat (5% in Q3).
The Group introduced a number of new products and line extensions across its
markets in all regions in the nine months. These include Tuborg Lime Cut in the
Nordics; several new brands within the Baltika umbrella in Russia; Kronenbourg
1664 and Eve were rolled-out in markets in all three regions and several
relaunches and line extensions took place in Asian markets such as Vietnam and
China.
To support the Group's key brands and new products, and in line with the
ambitions to grow volume and value market shares, marketing costs grew
organically by double-digit percentages. To ensure that volume and value market
share growth are maximised across channel and
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Company announcement 13/2010
9 November 2010
Page 5 of 31
customer, the Groups' Value Management principles are applied and continuously
developed across markets.
The Group delivered 2% net revenue growth to DKK 46,655m (DKK 45,766m in 2009)
with -2% organic revenue development (total volume -2% and flat price/mix),
currency impact 5% and -1% net acquisition impact.
Cost of sales per hl declined in all regions due to production efficiencies and
favourable hedges/ lower input costs.
Group operating profit grew by 18% to DKK 9,149m (DKK 7,747m in 2009) with an
organic growth of 9%, currency impact of 9% and no net effect from acquisitions.
Q3 operating profit growth was 26% (16% organic growth).
Free cash flow was DKK 5,815m (DKK 6,116m in 2009). The decline was mainly
driven by a small negative working capital impact this year compared to the
substantial positive cash in-flow in 2009 and cash payments related to
acquisitions in the Asian region.
In June, the Carlsberg Group entered into a conditional agreement to increase
its shareholding in Chongqing Brewery Co. Ltd from 17.46% to 29.71%.
In October, the Group established a new 5-year multi-currency revolving credit
facility of EUR 1.75bn and issued 7-year EUR notes of EUR 1bn at attractive
prices and conditions. The new facilities will mainly be used for the
refinancing of the Scottish & Newcastle acquisition facilities. Following the
refinancing, the Group has extended the maturity profile of its debt and
achieved more balanced funding sources.
2010 earnings expectations
Since the Q2 interim result announcement on 17 August most assumptions have
developed as expected. However, the Group has seen a slightly more positive
development in the Russian market conditions than previously anticipated, but
also rising input costs, mainly impacting Eastern Europe, and weaknesses of some
currencies, especially the Russian rouble since mid- September.
The key assumptions for the 2010 outlook are the following:
• A slight decline in Northern & Western European markets
• A mid-single-digit percentage decline in the Russian market (previously 'high
single-digit
percentage decline')
• Continued market growth in Asia
• Increased investments in brands and channel marketing to grow volume and value
market shares
• Continued implementation of operational and capital efficiency improvements
• An average EUR/RUB exchange rate of around 40 (in spite of current spot price
level of
around 42-43)
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Company announcement 13/2010
9 November 2010
Page 6 of 31
Consequently the Carlsberg Group expects for 2010:
• Operating profit at more than DKK 10bn (previously 'operating profit at around
DKK
10bn'). In Q4, the Eastern Europe region is expected to deliver significantly
lower earnings than last year due to comparables (positively impacted last
year by stocking in Russia), increased input costs and phasing of sales and
marketing expenses this year.
• Net profit growth unchanged at around 40% excluding the one-off
acquisition-related
special item and net income of DKK 390m.
NORTHERN & WESTERN EUROPE
Change Change
DKK million 2009 Organic Acq., net FX 2010 Reported
Q3
Beer sal es (mi lli on hl) 14.1 0% 0% 14. 1 0%
Net revenue 10,110 0% -2% 3% 10,198 1%
Operating profit 1,700 11% 0% 4% 1,949 15%
Operating margin (%) 16.8 19.1 230bp
9 mths
Beer sales (million hl) 38.8 1% -2% 38.4 -1%
Net revenue 28,015 -1% -3% 3% 27,706 -1%
Operating profit 3,580 16% -1% 4% 4,247 19%
Operating margin (%) 12.8 15.3 250bp
For the nine months the overall beer market in Northern & Western Europe
declined by an estimated 2%. Challenging consumer dynamics in most markets
continue to impact market development negatively.
The Group gained volume and value market share in the region as a whole by an
estimated 0.5%. The market share improvement was mainly driven by strong
performance in markets such as the UK, Poland, South-East Europe and Norway
while the Group's market share in Sweden and the Baltics declined.
During the nine months several significant initiatives were taken across the
region to support market share growth and brand positions. These initiatives
included product launches such as the introduction of Tuborg Lime Cut in Denmark
and Norway, Kronenbourg Sélection des Brasseurs in France, and Kasztelan
Niepasteryzowany (Kasztelan Non-pasteurised) in Poland. Existing brands were
rolled out in new markets such as Tuborg in the Baltics.
Group beer volumes grew organically by 1% (flat for Q3). The UK, Polish and
Portuguese businesses were the main drivers of the organic volume growth. The
Danish and Finnish businesses declined mainly due to overall market decline and
the strikes in Q2, and in Sweden due to loss of market share. Reported beer
volume development was -1% due to the disposal of the Braunschweig brewery in
2009.
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Company announcement 13/2010
9 November 2010
Page 7 of 31
Due to the strikes in Denmark and Finland and portfolio optimisation within
non-beer in a couple of markets, organic total volume (including non-beer
products) development was flat (also flat in Q3).
Organic net revenue development was -1% (flat for Q3) with a reported
development of -1% to DKK 27,706m (DKK 28,015m in 2009). Net revenue for beer
grew by 1% (volume 1%, flat price/mix, currency 3% and net acquisitions -3%).
There was a small positive pricing effect in most markets in the region while
mix was slightly negative driven by the Baltics, Poland and South East Europe
due to the shift in channels and between brands.
The UK market declined by approximately 3.5% but the Group continued to
strengthen its position and grew its market share in both volume and value
(volume share 15.7%; +140bp) with a 60bp improvement in Q3 to 14.8%. For the
nine months the Group's UK volumes increased by mid-single-digit percentages.
The channel shift from on-trade to off-trade continued and the Group gained
share in both channels. The Carlsberg brand family is the largest off-trade beer
brand in the UK.
The Group's French beer volumes declined by 2% for the nine months in a French
market that contracted by an estimated 1%. The acquisition synergies and the
ongoing operational efficiency improvements are being executed according to
plan. The French business continues to drive the commercial restructuring plan
with strong focus on the key brands Kronenbourg, Kronenbourg 1664 and
Grimbergen.
The volume and profit development in the Danish and Finnish businesses were
negatively impacted by the strikes in May. In addition, the Danish business was
also negatively impacted by an excise duty increase on cider implemented in
August. This led to a double-digit decline in domestic cider volumes. In spite
of the strike, the Danish beer market share improved slightly for the nine
months and Q3.
The Polish market declined by an estimated 1% for the nine months. The Group's
Polish business strengthened considerably driven by the initiatives taken in
2009, including efficiency improvements and product launches. With widened
distribution in general and strong performance of the Harnas brand and the
successful launch of Kasztelan Niepasteryzowany (Kasztelan Non-pasteurised), the
Group's Polish volumes grew double digit.
Operating profit grew by 19% to DKK 4,247m (DKK 3,580m in 2009) with 16% organic
growth (11% for Q3). Most markets delivered organic operating profit growth.
Operating margin improved by 250bp to 15.3% (12.8% in 2009).
For the nine months, operating expenses were on par with last year's level
despite a significant increase in marketing costs. The Group will face higher
input costs next year which will lead to increased sales prices.
In August, the closure of the Swiss Fribourg brewery in June 2011 was announced.
Beer production for the Swiss market will be concentrated at the brewery in
Rheinfelden.
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Company announcement 13/2010
9 November 2010
Page 8 of 31
EASTERN EUROPE
Change Change
DKK million 2009 Organic Acq., net FX 2010 Reported
Q3
Beer sal es (mi lli on hl) 14.4 3% 0% 14. 7 3%
Net revenue 5,135 4% 0% 13% 6,016 17%
Operating profit 1,550 12% 0% 15% 1,969 27%
Operating margin (%) 30.2 32.7 250bp
9 mths
Beer sales (million hl) 40.2 -7% 0% 37.3 -7%
Net revenue 14,442 -8% 0% 10% 14,696 2%
Operating profit 4,197 -4% 0% 13% 4,566 9%
Operating margin (%) 29.1 31.1 200bp
Driven by favourable weather conditions, improving consumer sentiment and an
overall improvement in the Russian economy, the Russian beer market improved in
Q3 compared to the first six months of 2010, growing by 2% in Q3. The growth in
Q3 was, however, not able to compensate for the market decline in the first six
months caused by the substantial excise duty increase and, consequently, the
market declined by an estimated 5% for the nine months.
The Group's Russian in-market-sales ("off-take") declined by 6% for the nine
months but as expected, the Group's volumes ("shipments") declined considerably
more by around 11% due to the destocking in Q1 following the excise duty
increase. The stock building at Russian distributors in Q4 2009 ahead of the
200% excise duty increase at 1 January 2010 amounted to approximately 1.5m hl
and increased 2009 operating profit by an estimated DKK 300m. Destocking was
completed by end Q1. The Q3 Russian shipments increased by 1% while in-
market-sales increased by an estimated 2%.
The Carlsberg Group's Russian market share declined by 80bp to 38.9% for the
nine months. The development in market share is driven by higher price increases
of Carlsberg versus most of the market and the fact that in Q3, an unexpected
pricing gap to most competitors still prevails. In addition, there has been a
higher competitive in-store activity level in Q3 than anticipated but responding
to this higher activity level late in Q3 has supported Carlsberg in achieving a
higher market share in September.
In the other markets in the Eastern European region there were clear signs of
market recovery and all markets grew for the nine months.
The Ukrainian market grew by approximately 4%. The Group's business in Ukraine
continued its strong performance with high single digit organic beer volume
growth and reinforced its number two position in the market. The market share
grew by 160bp to 28.6%. The growth was mainly driven by the Lvivske brand in the
mainstream category and the Baltika brand in the premium category while the
market share of the Slavutich brand declined. Kvass Taras also performed
strongly and almost doubled its volumes compared to last year.
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Company announcement 13/2010
9 November 2010
Page 9 of 31
For the nine months, the Group's beer volumes declined organically by 7%.
Adjusted for the Russian de-stocking impacting Q1, the organic volume decline
for the region was 3%.
For Q3, organic beer volumes grew by 3% due to the 1% volume growth (shipments)
in Russia in the quarter and continued growth in the other markets in the
region.
A number of new products and innovations were launched across the region.
Examples include Baltika Draught, Baltika 20, Nevskoe Imperial and Zatecky Gus
Dark which were launched in Russia; Derbes Draught and Irbis Ice in Kazakhstan;
and Lvivske Live Beer in Ukraine. Other Group brands such as Grimbergen and Eve
were introduced in Russia. Eve was also launched in Kazakhstan and Baltika 7 was
rolled out in Ukraine and Uzbekistan. Of non-beer products the Group launched
mineral water and increased distribution of soft drinks in Russia. Kvass was
launched in Uzbekistan, Somersby in Russia and ice tea in Ukraine. The marketing
spend increased by double-digit percentages to support brands and activities and
drive volume and value share gains.
Nine months net revenue increased by 2% to DKK 14,696m (DKK 14,442m in 2009).
Organic net revenue development for the region was -8%. Price/mix was -1% for
the period as the Russian price increases to fully cover the excise duty
increase of around 25% were taken in several smaller steps from November 2009 up
until June 2010. Consequently, price/mix in Russia was -4%.
Q3 organic net revenue growth was 4% and reported net revenue grew by 17% to DKK
6,016m (DKK 5,135m in 2009). The positive impact from currencies for the
quarter, especially the Russian rouble, accounted for 13%. Price/mix was 1%
(price/mix in Russia was -1%).
For the nine months, organic operating profit development was -4% with a 9%
growth in reported operating profit to DKK 4,566m (DKK 4,197m in 2009).
Adjusting for the DKK 300m negative impact from the destocking in Q1, organic
operating profit growth would have been 4%.
Q3 operating profit grew organically by 12%. There were particularly strong
organic profit growth in Ukraine, Uzbekistan and Azerbaijan. The Russian
business reported 8% organic operating profit growth for the quarter due to
volume growth, lower input costs and efficiency improvements. Gross profit and
operating consequently improved considerably in all markets. The quarter was not
impacted by the higher prices on packaging and raw materials.
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Company announcement 13/2010
9 November 2010
Page 10 of 31
ASIA
Change Change
DKK million 2009 Organic Acq., net FX 2010 Reported
Q3
Beer sal es (mi lli on hl) 3.5 14 % 30% 5.1 44%
Net revenue 1,060 15% 9% 14% 1,464 38%
Operating profit 197 26% 18% 18% 320 62%
Operating margin (%) 18.7 21.9 320bp
9 mths
Beer sal es (mi lli on hl) 9.9 16 % 25% 14. 0 41%
Net revenue 3,183 18% 8% 6% 4,190 32%
Operating profit 519 40% 15% 9% 850 64%
Operating margin (%) 16.3 20.3 400bp
Note: 2009 full-year income and volumes from the associated company Chongqing
were included in Q4 2009
All markets in the Asian region delivered organic volume growth for the nine
months and organic beer volumes for the region grew by 16% (14% in Q3).
Including acquisition and consolidation changes, beer volumes grew by 41%. The
markets in China, Vietnam, Cambodia and India were the main drivers behind the
organic volume growth.
Organic beer volume growth in China was approximately 11% with a slight
acceleration in Q3. The volume growth was driven by both the Western China
businesses and the international premium category. The Carlsberg and Carlsberg
Chill brands performed well and gained market share in the category supported by
marketing campaigns. In Western China the growth was driven by several marketing
initiatives and relaunches of local brands in provinces like Xinjiang, Yunnan
and Ningxia. The Chinese business reported positive price/mix at 4% driven by
premiumisation initiatives and price increases.
The organic beer volume growth in Indochina (Vietnam, Laos and Cambodia) was
23%, well ahead of the overall market growth. The growth was strong across all
three markets. During the nine months the product portfolios in all markets were
strengthened, among others through line extensions in Laos with Beer Lao Gold
and in Vietnam with Huda Extra, Halida Thang Long and Truc Bach Beer. These
introductions performed well and contributed to improved price/mix in all three
markets.
The Malaysian market grew by high single-digit percentages for the nine months
and our market share was kept flat with positive drivers being price increases
and World Cup.
In India the beer market grew by almost 20% for the nine months. The Carlsberg
Group volumes grew significantly ahead of the market helped by the successful
launch of Tuborg Strong.
Net revenue grew by 32% to DKK 4,190m (DKK 3,183m in 2009). Organic net revenue
growth was 18% (15% in Q3) consisting of 14% organic volume growth (including
non-beer volumes) and 4% price/mix. The main drivers behind the organic net
revenue growth were volume growth and
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Company announcement 13/2010
9 November 2010
Page 11 of 31
very positive price/mix in Indochina, volume growth and mid-single-digit
price/mix in China and volume growth in Malaysia.
Operating profit grew by 64% to DKK 850m (DKK 519m in 2009) with 40% organic
operating profit growth (26% in Q3). Operating profit margin improved by 400bp
to 20.3%. The strong margin improvement was driven by the positive price/mix,
lower input costs and lower operating expenses driven by the ongoing efficiency
efforts. This more than offset a slightly negative country mix for the region.
All markets in the region achieved organic operating profit growth and margin
improvements.
The acquisition of the additional 12.25% stake in Chongqing Brewery Co. Ltd is
awaiting final approval.
CENTRAL COSTS (NOT ALLOCATED)
Central costs were DKK -459m (DKK -461m in 2009). 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).
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 an operating loss of DKK
55m (loss of DKK 88m 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 partners for the Copenhagen brewery 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 changes described below ,the interim report has been prepared
using the same accounting policies as the consolidated financial statements for
2009.
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Company announcement 13/2010
9 November 2010
Page 12 of 31
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-based 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
have 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 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 valued. The fair value adjustment is recognised
in income statement.
In accordance with IFRS 3 and IAS 27 the comparative figures have not been
restated.
INCOME STATEMENT
Net special items include costs in connection with the restructuring measures
implemented across the Group and amounted to DKK -108m against DKK -371m in
2009. Special items were positively affected by a fair value non-cash
revaluation of DKK 390m of the shareholding in Xinjiang Wusu Beer Group held
before obtaining control in January 2010 (step acquisition), cf.
www.carlsberggroup.com
Company announcement 13/2010
9 November 2010
Page 13 of 31
note 7. In Q3, DKK -300m non-cash cost related to impairment of Eastern European
brands, including the Slavutich brand in Ukraine has been recognised.
Net financial items amounted to DKK -1,542m against DKK -2,217m in 2009. Net
interest costs accounted for DKK -1,441m, compared with DKK -1,671m in 2009 and
reflect the lower net debt following the significant deleveraging since the
beginning of 2009. Other net financial items were DKK -101m (DKK -546m in 2009)
due to currency and fair value adjustments which, for both 2009 and 2010, relate
to foreign currency borrowings in Eastern Europe.
Tax totalled DKK -1,919m against DKK -1,496m in 2009. Excluding the non-cash,
non-taxable gain under special items of DKK 390m this equals a tax rate of 27%.
Consolidated profit was DKK 5,580m, against DKK 3,663m in 2009.
Carlsberg's share of net profit was DKK 5,050m, against DKK 3,219m in 2009.
STATEMENT OF FINANCIAL POSITION
At 30 September 2010, Carlsberg had total assets of DKK 141.6bn (DKK 134.5bn at
31 December 2009). The increase of DKK 7.1bn primarily relates to currency
adjustments.
Assets
Intangible assets totalled DKK 85.9bn against DKK 81.6bn at 31 December 2009.
The increase is mainly related to currency impact and addition from the
acquisition for Xinjiang Wusu Beer Group (DKK 1,335m at the acquisition date).
Property, plant and equipment increased to DKK 31.9bn (DKK 31.8bn at 31 December
2009).
Financial assets amounted to DKK 6.0bn (DKK 5.9bn at 31 December 2009).
Current assets totalled DKK 17.7bn against DKK 14.8bn at 31 December 2009 due to
the increase of inventory and trade receivables following the normal
seasonality.
Liabilities
Total equity was DKK 67.2bn, of which DKK 62.0bn can be attributed to
shareholders in Carlsberg A/S and DKK 5.2bn to non-controlling interests.
The increase in equity compared to 31 December 2009 was DKK 7.8bn and is mainly
due to currency adjustments of approximately DKK 4.0bn, profit for the period,
DKK 5.6bn, payment of dividends to shareholders, DKK -1.2bn and value
adjustments of hedging instruments, DKK -0.8bn.
www.carlsberggroup.com
Company announcement 13/2010
9 November 2010
Page 14 of 31
Total liabilities were DKK 74.3bn (DKK 75.0bn at 31 December 2009). Non-current
liabilities decreased by DKK 1.7bn compared with 31 December 2009 while current
liabilities excluding the current portion of borrowings were DKK 24.5bn, up DKK
2.8bn compared to 31 December 2009.
CASH FLOW
Free cash flow was DKK 5,815m against DKK 6,116m for 2009.
Cash flow from operating activities in the first nine months of 2010 was DKK
8,812m against DKK 8,457m for the same period of 2009. Operating profit before
depreciation and amortisation was DKK 12,044m against DKK 10,524m in 2009.
The change in working capital was DKK -284m (DKK +1,119m in 2009). The small
negative change in working capital was according to plan and supports the focus
throughout the Group on reducing the average (versus the period end) trade
working capital throughout the year. Trade working capital to net revenue (MAT)
was around 1% at the end of Q3 2010 compared to around 4% at the end of Q3 2009.
Paid net interest etc. amounted to DKK -1,644m against DKK -1,895m for the same
period of 2009.
Cash flow from investing activities was DKK -2,997m against DKK -2,341m in the
first nine months of 2009. Operational capital expenditure was DKK 156m higher
than in 2009 and financial investments were higher by DKK 1,192m compared to
2009. The increase is primarily due to the acquisition of shares in Xinjiang and
a prepayment/deposit for the acquisition of additional 12.25% in Chongqing.
Finally cash flow from investing activities is positively impacted by disposal
of real estate, DKK 365m (DKK -327m in 2009).
FINANCING
At 30 September 2010, the gross interest-bearing debt amounted to DKK 35.6bn and
net interest-bearing debt amounted to DKK 31.8bn. 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 34.0bn) is long term, i.e. with
maturity more than one year from 30 September 2010, and consists primarily of
facilities in EUR.
In October, the Group established a new 5-year multi-currency revolving credit
facility of EUR 1.75bn and issued 7-year EUR notes of EUR 1bn at attractive
prices and conditions. The new facilities will mainly be used for refinancing of
the Scottish & Newcastle acquisition facilities. Following the refinancing the
maturity profile of the debt has been extended and funding sources have become
more balanced.
www.carlsberggroup.com
Company announcement 13/2010
9 November 2010
Page 15 of 31
FINANCIAL CALENDAR FOR THE FINANCIAL YEAR 2011
The financial year follows the calendar year, and the following schedule has
been set for 2011:
21 February 2011 Financial Statement as at 31 December 2010
1 March 2011 Annual report for 2010
24 March 2011 Annual General Meeting
11 May 2011 Interim results for Q1 2011
17 August 2011 Interim results for Q2 2011
9 November 2011 Interim results for Q3 2011
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
www.carlsberggroup.com
Company announcement 13/2010
9 November 2010
Page 16 of 31
forward-looking statement. Accordingly, forward-looking statements should not be
relied on as a prediction of actual results.
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
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 30 September 2010, and of
the results of the Carlsberg Group's operations and cash flow for the period 1
January - 30 September 2010.
Further, in our opinion the management's review (p. 1-16) 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, 9 November 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
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 13/2010
9 November 2010
Page 17 of 31
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.
Find out more at www.carlsberggroup.com.
www.carlsberggroup.com
Company announcement 13/2010
9 November 2010
Page 18 of 31
INCOME STATEMENT
DKK million Q3 Q3 9
mths 9 mths
2010 2009
2010 2009 2009
Net revenue 17,708 16,357 46,655
45,766 59,382
Cost of sales -8,138 -8,130
-22,074 -23,138 -30,197
Gross profit 9,570 8,227 24,581
22,628 29,185
Sales and distribution expenses -4,634 -4,033 -12,870 -12,155 -15,989
Administrative expenses -815 -875 -2,8 29 -2,803 -3,8 73
Ot her op era tin g inc om e, - 8 -41 159 6 -45
Sh are prof it tax , 54 26 108 71
112
Operating profit before special items 4,167 3,304 9,149 7,74 7 9,390
Special items, net -462 -180 -108
-371 -695
Financial income -190 -277 943
377 609
Financial expenses -535 -490 -2,4
85 -2,594 -3,5 99
Profit before tax 2,980 2,357
7,499 5,15 9 5,705
Corporation tax -804 -683 -1,9
19 -1,496 -1,5 38
Consolidated profit 2,176 1,674
5,580 3,66 3 4,167
Profit attributable
to:
Non-controlling interests 229 183 530 444 565
Shareholders in Carlsberg A/S 1,947 1,491 5,050 3,21 9 3,602
Ea rnin gspersha re 12. 8 9.8 33.1
21.1 23.6
Ea rnin gspersha re, dil ute d 12. 7 9.8 33.0 21.1
23.6
www.carlsberggroup.com
Company announcement 13/2010
9 November 2010
Page 19 of 31
STATEMENT OF COMPREHENSIVE INCOME
Q3 Q3 9 mths 9 mths
DKK million 2010 2009 2010 2009 2009
Profit for the period 2,176 1,674 5,580 3,663 4,167
Other comprehensive income
Foreign exchange adjustments of foreign - 5,413 -520 3,995 - 4,852 - 3,13 5
entities:
Value adjustments of hedging instruments 258 -34 -778 -183 23
Value adjustments of securities - - - - 1
Retirement benefit obligations 7 1 8 -256 3 3 -38 2
Value adjustment of step acquisition of - - - -65 31
subsidaries
Other -18 - -23 -2 -6
Tax on other comprehensive income -117 1 7 85 4 0 39
Other comprehensive income - 5,283 -519 3, 023 -5,029 - 3,42 9
Total comprehensive income - 3,107 1 ,155 8,603 - 1,366 738
Total comprehensive income attributable
to:
Non-controlling interests -183 1 45 8 25 9 7 171
Sh areho lde rs in Car lsb erg A /S - 2,9 24 1 ,010 7,778 - 1,463 567
www.carlsberggroup.com
Company announcement 13/2010
9 November 2010
Page 20 of 31
STATEMENT OF FINANCIAL POSITION
DK K mi
- - -
lli on
0 0 1
- - -
- - -
p - c
t t -
- - -
0 - -
- 0 9
0 9
Assets
Intan
8 - -
gible
- - -
asse ts
- - -
- - -
- - -
4 7 1
Property,
3 - -
plant and
1- - -
equipment
9- - -
6 - -
- -
1 5
Financial
6 5 -
assets
,- - -
26- -
- -
9 0
Tot al
- - 1
- - -
- - -
, - -
- - -
- 5 -
6 7 6
Inv ent
1 - -
ori es
- - -
- - -
- - -
4 - 9
9 8
Other
3 3 -
receivab-
,- - -
es etc.
55- -
- -
5 8
Cash and
2 2 -
cash
- - -
equivale-
- - -
ts
- - -
2 5 4
Total
1 - -
- - -
- - -
- - -
- - -
6 8 1
Assets
9 1 -
held for
4 - -
sale
2 8
Tot al
- - 1
- - -
- - -
, - -
- - -
- 6 -
6 7 5
Equity
and
liabilit-
es
Eq uity , sh areh olde rs in Ca rlsb erg A/S Non-controlling interests
6 - -
- - -
- - -
- - -
3 - -
7 6 9
5 4 -
- - -
- - -
- - -
4 8 0
Total
6 - -
equity
7- - -
2- - -
1 - -
- -
4 9
Bo rrow
3 - -
ing s
- - -
- - -
- - -
5 - -
8 1 5
Deferred tax, retirement benefit obligations etc.
1 - -
4- - -
2- - -
0 - -
- -
7 0
Total
4 - -
non-curr-
8- - -
nt
3- - -
liabilit-
8 - -
es
- -
8 5
Borrowin-
1 3 -
s
- - -
- - -
- - -
3 1 2
Tra de
- 7 -
, - -
- - -
- - -
8 1 9
Deposits on returnable bottles and crate
1 1 -
,- - -
05- -
- -
6 1
Ot her
1 - -
- - -
- - -
- - -
3 - -
0 9 8
Total
2 - -
current
5- - -
liabilit-
9- - -
es
6 - -
- -
7 0
Liabilit- - - held - - held for
- h- 4 2 5
es - - for - - sale -
ld1 - 1
associat- - - sale - -
- f- 8
d with d d d d d
r
assets - - - - -
s-
- - - - -
le
r r r r r
- - - - -
- - - - -
- - - - -
e e e e e
Total
1- - 1
equity
1- - -
and
5- - -
liabilit-
6 - -
es
- -
6 -
7 5
www.carlsberggroup.com
STATEME
DKK m lliion
Equit y at 1 Ja nua
Total co mpr ehens iv
Prof it for the peri od
ehensive inco em
Foreign exchange adjusmt
Reti reme nt benef it obl igati ons Other Ta x on othe r co
mpr ehens ive incom e Other comprehensive income Total co mpr
ehens ive inc ome for the pe rio d Acquisition/disposal of
treasury shares Share-based payment Dividends paid to
shareholders Acq uisit ion of non-c ont roll ing i ntere sts
and enti ties Total ch anges in equi ty Equit y at 30 Sept
ember 201 0
3,0 51
nsive income
Foreign exchange adjustments of foreign entities - -4,515 -
Valu e adjus tme ntsof inst rum ents - -25 -158
Reti remebenef it obl igati ons - - -
nt
Value adjustme nt of step acqu isition of - - - -
subsidarie s
717,8-641233,1-540-
7-
-4, 658
Share-based payment - - - - -
Acquisition/disposal of treasury - - - - -
shares
Dividends paid to shareholders - - - -
Acq uisit ionof - - -
-
-
-
c
-
-
t
-
-
-
l
-
-
g
Shar e
capi tal
Cu
-
-
e
tran s
cy n
-
-
t
servesre
latTo
stnme
-stveni
S-fA-
sevre
iedgH
oin
gn
stnme
-stveni
S-fA-
sevresre
gniedgH
noiatlsanrt
cy nerruC
latapic
eraSh
- - -
,536 -122 - -4,658 2,69 4
Equit y at30 Sept ember 200 9 3,0 51 -12, 229 -1,6 37 145 -13
stseret-
n
gnllior-
noc
-nNo
-
-
-
-
-
-
-
e
-
d
a
-
-
-
i
stseret-
n
gnllior-
noc
-nNo
sevresre
ltaipa cltaoT
sgninrea
deniatRe
servesre
latTo
ytuieq
latTo
ytuieq
latTo
,721 - - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
55 55
--
Total ch anges in equi ty - -4
her - -
Ta x onothe r co mpr ehens - 4
ive
Other comprehensive income - -4,536
co mpr ehens inc ome - -4,536
ive
28,64- 42-856,
Total
55- 55- -
Ot
DKK million
Equity at 1 January 2009
3,051 -7,693
Total co mpr ehens ive for
the pe rio d
Prof it for the
- -
Other comprehe
Other compr
.com pu.carlsberggrowww
Company announcement 13/2010
9 November 2010
Page 22 of 31
STATEMENT OF CASH FLOWS
- - - - - 9 9
3 3 3 3 3 - -
- -
- -
s s
- - - - - - - 2009
- - - - - - -
- - - - - - -
0 0 0 0 9 0 9
4 4 4 3- - - 9,390
- - ,1- 3- - -
- - 7 4 - -
- - - -
7 7 9 7
- - 1,0 - - - 3,779
- - 01 - - -
0 0 7 - -
- - - -
1 1 5 7
Operating profit 4- 1- 1- 13,169
before depreciation,2- ,0,-
amortisation and 1 4424
- - - - - - - 265
- - - - - - -
1 1 1 1 7 0 1
- - - - - - - 3,675
- - - - - - -
- - - - - - -
8 8 8 8 9 4 -
9
- - - - - - - -507
- - - - - - -
- - - - 8 - -
8 8 8 8 6 3
5 5 5 5 - - - 255
3 3 3 3 4 8 -
3
- - - - - - - -1,852
- - - - - - -
3 3 3 3 - - -
5 5 5 5 3 - 0
- -
2 8
- - - - - - - -1,374
- - - - - - -
- - - - - - -
7 7 7 7 9 - 1
- -
8 9
4 4 4 2- - - 13,63 1
- - ,064- - -
- - 4 9 - -
6 6 - -
4 4 2 7
Acquisition of - - - -2,767
property, plant and - - -
equipment and - - -
1 - 0
- -
2 8
Disp- - - - - - - - 255
sal 8 8 8 8 5 7 -
of 4
prop-
rty,
plant
and
equi-
ment
and
- - - - - - - -411
- - - - - - -
- - - - 6 - -
2 2 2 2 9 4
- - - - - - - -2,923
- - - - - - -
- - - - - - -
8 8 8 8 2 - 1
- -
4 8
- - - - - - 1 9 5
4 4 4 4 - - -
2 - 0
1
- - - - - - - -48
- - - - - - -
0 0 0 0 1 2 9
- - - - - - - -7
3
- - - - - - 1 -11
- - - - 4 -
0 0 0 0 3
- - - - - - - 44
3 3 3 3 7 5
- - - - - - 1 -98
1 1 1 1 4 - 5
-
3
4 4 4 4 - - - 56
9 9 9 9 1 7 2
- - - - - - 1 31
7 7 7 7 - - -
2 - 4
-
-
8
an d an d an d - - - -388
equi equi equi pm - - -
pm entpm entent 3 6 -
7
Disposal of other - - 2 198
property, plant and - 0
equipment 1
- - - - - - - -190
9 9 9 9 - - -
3 5 -
7
- - - - - - - -3,082
- - - - - - -
- - - - - - -
2 2 2 2 3 - 3
- -
7 1
3 3 3 2- - - 10,54 9
- - ,370- - -
- - 2 6 - -
7 7 - -
2 2 5 6
- - - - - - - -540
- - - - - - -
5 5 5 5 1 - -
8 5
- - - - - - - -591
- - - - - - -
- - - - - - -
7 7 7 7 2 7 8
- - -2- -2,- - - 8, 8 6 2
- - 57575 -
- - -
- - 7
- - -
5 5 7
- - - -3,- - -9,993
- - 2,728 -
- - 67 -
7 7 8
- - -
7 7 0
- - - - -1,- - 5 5 6
- - - - 12 -
5 5 5 5 6
peri peri peri od 3- - - 2,065
od od 4- - -
9 - -
- -
3 5
- - - - - - - -38
- - - - - - -
- - - - 8 3 2
7 7 7 7
- - 2, 2- - - 2,583
, , 7182- - -
- - 9 - -
- - - -
8 8 8 9
in - - Sp-
- - c
- - ia
c c l
- - it-
a a m s
l l .
- -
- -
- -
m m
s s
. .
3 Cash and cash
equivalent less bank
overdrafts
www.carlsberggroup.com
Company announcement 13/2010
9 November 2010
Page 23 of 31
NOTE 1
Segment reporting by region (beverages)
DKK million Q3 Q3 9 mths 9
mths
201 0 2009 201 0
2009 200 9
Beer sales (pro rata, million hl)
Northern & Western Europe 14.1 14.1 38.4
38.8 50.2
Eastern Europe 14.7 14.4 37.3
40.2 51.3
Asia 5.1 3.5 14.0
9.9 14.5
Total 33.9 32.0 89.7
88.9 116.0
Net revenue (DKK million)
Northern & Western Europe 10,198 10,110 27,706
28,015 36,466
Eastern Europe 6,016 5,135 14,696
14,442 18,545
Asi a - 1,46 4 1,060 4,19 0
3,183 4,224
-
-
6
4
Not allocated 30 52 63
126 147
Beverages, total 17,708 16,357 46,655
45,766 59,382
Opera tingprofi t before specia l -
-
-
-
s
(EBITDA - DKK million)
No rth ern & Wes ter n Eur ope Eastern Europe 2,45 6 2,224 5,75 1
5,146 6,36 6
- 2,379 1,871 5,70 8
5,184 6,63 8
-
-
-
9
Asia 382 248 1,035
676 874
Not allocated -18 -90 -410
-403 -65 5
Beverages, total 5,199 4,253 12,084
10,603 13,223
Opera tingprofi t before
No rth ern& 1,94 9 1,700 4,24 7 3,5
804,23 7
Eastern Europe 1,969 1,550 4,56 6 4,1
975,28 9
Asia 320 197 850
519 666
Not allocated -35 -108 -459
-461 -73 2
Beverages, total 4,203 3,339 9,20 4 7,8
359,46 0
Opera tingprofi t margi n (%)
Northern & Western Europe 19.1 16.8 15.3
12.8 11.6
Eastern Europe 32.7 30.2 31.1
29.1 28.5
Asia 21.9 18.7 20.3
16.3 15.8
Not
allocated……………
Beverages, total 23.720.419.717.11 5.9
www.carlsberggroup.com
Company announcement 13/2010
9 November 2010
Page 24 of 31
NOTE 2
Segment reporting by activity
DKK Q3 Q3
mill-
on
2010 2009
Bever- Other Bever- Oth er
ages activities Total ages activities
Total
Net 17,708 - 17,7 08 16,357 -
16,357
reve-
ue
Operating profit before special 4,203 -36 4,167 3,33 9 -35
3,304
items
Sp net net -462 - -462 -122 -58
-180
ecia
l
item
s,
Financial items, net -716 -9 -725 -758 -9
-767
Profitax 3,025 -45 2,980 2,45 9 -102
2,357
t
befo-
e
Corporation tax -816 12 -804 -698 15
-683
Consolidated profit 2,209 -33 2,176 1,76 1 -87
1,674
Attributable to:
Non-controlling interests 2 29 - 229 1 83 -
183
Sh in Car in Car 1,9 80 -33 1,947 1,57 8 -87
1,491
areho lsbe rg lsbe rg
lde A/S A/S
rs
DKK 9 mths 9 mths
mill-
on
2010 2009
Bever- Other Bever- Oth er
ages activities Total ages activities
Total
Net 4 6,655 - 46,6 55 4 5,766 -
45,766
reve-
ue
Operating profit before special 9,204 -55 9,149 7,83 5 -88
7,747
items
Sp net net -108 - -108 -313 -58
-371
ecia
l
item
s,
Financial items, net -1,520 -22 -1,5 42 -2,212 -5
-2,217
Profitax 7,576 -77 7,499 5,31 0 -151
5,159
t
befo-
e
Corporation tax -1,944 25 -1,9 19 -1,521 25
-1,496
Consolidated profit 5,632 -52 5,580 3,78 9 -126
3,663
Attributable to:
Non-controlling interests 5 30 - 530 4 44 -
444
Sh in Car in Car 5,1 02 -52 5,050 3,34 5 -126
3,219
areho lsbe rg lsbe rg
lde A/S A/S
rs
www.carlsberggroup.com
Company announcement 13/2010
9 November 2010
Page 25 of 31
NOTE 3
Segment reporting by quarter
DKK
millionQ4Q1Q2Q3Q4Q1Q2Q3
2008 2009 2009 2009 2009 2010 2010
2010
Net
revenue
Northern and Western Europe 8,915 7,20010,705 10,110 8,451 7,30910,19910,19
8
Eastern Europe 4,616 3,466 5,841 5,13 5 4,103 2,3866,29 46,016
Asia 984 1,074 1,049 1,06 0 1,041 1,2341,49 21,464
Not allocated 9 46 28 52 21 44 -11 30
Beverages, total 14,524 11,78617,623 16,35713,6 16 10,97317,97417,70
8
Other activities - - - - - - - -
Total 14,524 11,78617,623 16,35713,6 16 10,97317,97417,70
8
Operating profit before
special items
Northern and Western Europe 847 140 1,740 1,70 0 657 406 1,8921,949
Eastern Europe 798 695 1,952 1,55 0 1,092 321 2,2761,969
Asia 125 155 167 197 147 231 299 320
Not allocated -363 -169 -184 -108 -271 -230 -194 -35
Beverages, total 1,407 821 3,675 3,33 9 1,625 728 4,2734,203
Other activities -21 -33 -20 -35 18 7 -26 -36
Total 1,386 788 3,655 3,30 4 1,643 735 4,2474,167
Sp ecia l net -1 ,34 -107 - 84 -180 -324 349 5 -462
item s, 4
Financial items, net -1,281 -904 -546 -767 -773 -515 -302 -725
Profi t tax -1,23 9 -223 3,025 2,35 7 546 569 3,9502,980
before
Corporation tax 1,522 65 -878 -683 -42 -48-1,067 -804
Consolidated profit 283 -158 2,147 1,67 4 504 521 2,8832,176
Attributable to:
Non-controlling interests 172 54 207 183 121 50 251 229
Sh areho in Car 11 1 -212 1,940 1,49 1 383 471 2,6321,947
lde rs lsb erg A
/S
www.carlsberggroup.com
Company announcement 13/2010
9 November 2010
Page 26 of 31
NOTE 4
Special items
DKK million 9 mths 9 mths
2009
2010 2009
Special items, income:
Ad jus tme nt to gain fr om sa le of enti tie s in prio r ye ar 124 -
-
Gai n on sa le
of
Carl sb erg - - 4 9
4 9
-
u
-
-
c
-
-
-
n
d
Value adjustment on step acquisition of subsidiary 390 -
-
Total 514 4 9
4 9
Special items, cost:
Impairment of finite trademarks - -
-37
Impairment of trademarks -300 -
-
Restructuring of Leeds Brewery, Carlsberg UK -19 -39
-67
Relocation costs, termination benefits and impairment of
non-current as set s in con nect ion wit h new prod uc tion st
ruct ure in Den mar k
-27 -34
-40
Ter mi nati on -
-
-
e
-
-
-
s
in - - -19
-20
o
-
-
-
c
-
i
-
n
-
i
-
h
Provision for onerous malt contracts, including reversal of
unused prov isi on f rom prev iou s ye ar
-7 -175
-175
Termination benefits etc. in connection with Operational -19 -
-31
Excellence Programmes Ter mi nati on
bene fit s
lo gist ic - -16 -
-34
-
-
i
-
-
-
t
-
-
t
-
-
n
,
-
a
-
-
-
b
-
r
g
-
K
-
-
-
-
s
-
-
-
g
Termi natio n benefit -18 -31
-56
Ter mi nati on -
-
-
e
-
-
t
Brasseries Kronenbourg, France -8 -27
-95
Ter mi nati on - - -
-72
-
-
e
-
-
t
Restructuring, Mythos, Greece -6 -
-
Other restructuring -43 -78
-100
Restructuring of Fribourg Brewery, Feldschlösschen -159 -
-
Inte grat ion - - -17
-17
-
s
-
s
Total -622 -420
-744
Sp ecia l item s, -1 08 -371
-695
www.carlsberggroup.com
Company announcement 13/2010
9 November 2010
Page 27 of 31
NOTE 5 (PAGE 1 OF 2)
Debt and credit facilities
30 Sept. 2009
DKK million 30 Sept . 20 10 DKK million
Non-current borrowings:
Issued bonds 14,072 7,278
Bank borrowings 17,858 12,122
Mortgages 1,984 913
Lease liabilities 14 53
Other non-current borrowings 130 184
Total 34,058 20,551
Current borrowings:
Bank borrowings 960 1,662
Lease liabilities 11 20
Ot her cur rentborr owi ngs 542 944
Total 1,513 3,031
Tot al non -cu rren t andcu rren t- 35, 571 23,582
-
-
r
-
-
i
-
-
s
Cash and cash equivalents -2,872
Net financial debt 32,699
Other interest bearing assets -855
Net interest bearing debt 31,844
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 3,151m
www.carlsberggroup.com
Company announcement 13/2010
9 November 2010
Page 28 of 31
NOTE 5 (PAGE 2 OF 2)
Debt and credit facilities
DKK million 30 Se pt. 20 10
Time to maturity for non-current borrowings
1-2 ye ye ars 2-3 year s year s >
Tot al
ars
2,143 2,143 1,733 - -
14,072
406 406 16,790 283 283
17,858
- - - - - -
1,984
126 126 - - 18 18
144
2,675 2,675 18,523 301 301
34,058
Net Net
financ ial Inter est* Inter Inter
est* est*
debt debt Fix ed Fix ed Flo
Fix ed %
ati
ng
%
29, 626 19,985
67%
1,903 1,903 371 371
19%
1,170 1,170 1,733 1,733
N/A
3 2,69 9 22,0 89
68%
sw ap of1bn 1bn EU R hasnot not thetabl e. tabl tabl
e. e.
DKK million
Commited credit facilities* 30 Sep. 2010
Less than 1 year 1,513
1 to 2 years 3,675
2 to 3 years 27,010
3 to 4 years 7,788
4 to 5 years 301
More than 5 years 4,771
Tot al 45, 058
Sh ort ter m 1,51 3
Long term 43,545
*Defi ned - ter m com mi tted
s
www.carlsberggroup.com
Company announcement 13/2010
9 November 2010
Page 29 of 31
NOTE 6
Net interest-bearing debt
DKK million Q3 Q3 9 mths 9 mths
201 0 200 9 2010 200 9 2009
Net interest-bearing debt is calculated as follows:
No n-cu rre nt borr ow ing s Cu rren t 34,0
58 38,831 36,075
bor ro win bor ro win bor ro win gs 1,5
13 3,51 1 3,322
gs gs
Gr oss int eres t-b eari ng 35,5
71 42,342 39,397
Ca sh and -2,
872 -2,855 -2,7 34
Loans to associates -12
-3 -36
On-trade loans
-2,072 -2,201 -2,1 43
les s non- inte res t-b ear ing- 1,2
66 1,40 3 1,368
-
r
-
i
-
n
Other receivables
-1,670 -1,699 -1,5 33
les s non- inte res t-b ear ing- 1,6
33 1,54 6 1,360
-
r
-
i
-
n
Net interest-bearing debt
31,844 38,533 35,679
Changes in net interest-bearing debt:
Net interest-bearing debt at beginning of period 35,299
40,814 35,679 44,156 44,156
Ca sh act ivit ies -4, 064
-2,489 -8,8 12 -8,457 -13,631
Cash flow from investing activities, excl acquisition
of entities 688
595 2,486 2,45 1 3,177
Ca sh a- of 4
-122 511 -110 -95
qu
is
i-
io
n
Dividend to shareholders and non-controlling interests 109
3 1,177 833 846
Acquisition of non-controlling interests 69
188 125 242 286
Acq uisi tio n/di spos al of tre asur y 15
9 34 9 6
sha res
Acquired net interest-bearing debt from acquisition/
disposal of entities -121
- -85 4 45
Change in interest-bearing lending 144
255 211 317 -
Effects of currency -165
-692 558 -954 562
translation
Other -134
-28 -40 42 327
Total change -3,455
-2,281 -3,8 35 -5,623 -8,4 77
Ne t in ter est -bea rin g end ofperi od 31,8 44
38,533 31,844 38,533 35,679
www.carlsberggroup.com
Company announcement 13/2010
9 November 2010
Page 30 of 31
NOTE 7
Acquisition of entities
DKK million
Total
Ac quis itio n Main Acquired Carlsberg
Acquired entities date activity Cost interest inte re st
Wusu-Xinjiang 1 January '10 Brewery 228 4.83% 64.95%
Fair value of consideration paid for acquired interest 228
Fair value of previously held interest
660
Fair value of non-controlling interest 385
Fair value of entity acquired in stages, total 1,273
Fair
value at
DKK million acquisition
Intan gible asse ts 167
Property, plant & equipment 335
Inv ent ori es 124
Loans & receivables, current 6
Cash & cash equivalents 13
Provisions, excl. of deferred tax -130
Deferred tax assets & liabilities, net -2
Borrowings -9 2
Tra de pay abl es - payab les -316
-
d
-
t
-
-
r
Total net assets 105
Fair value of entity acquired in stages, total 1,273
Goodwi ll total
1,168
Goodwill is attributable to:
Carlsberg interest 820
Non-controlling interest 348
Goodwi ll total 1,168
Elements of cash consideration paid:
Cash 228
Cash and cash equivalents, acquired* -5
Total 223
*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 combination achieved in stages (step acquisition). The shareholdings
held before obtaining control have 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 13/2010
9 November 2010
Page 31 of 31
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 competences 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 has been
adjusted by DKK 284m as a result of allocation of debt according to agreement.
The adjustment was recognised as goodwill. The purchase price is expected to be
further adjusted depending on the final allocation of debt according to
agreement.
www.carlsberggroup.com
