November 2012

Q3 Shareholder Magazine Content

3 Letter from the CEO 4 THIRST FOR 3 6 L’art de vivre: Kronenbourg 1664 offers a taste of 8 Carlsberg holiday campaign brings joy and beer 9 a Climpse of Carlsberg

12 Interim results as at 30 september 2012 14 Key figures 12 18 Income statement 19 Statement of financial position

20 overview

The is one of the leading groups in the world, with a large portfolio of beer and other beverage brands. Our flagship brand – Carlsberg – is one of the best-known beer brands in the world and the Baltika, Carlsberg, and Tuborg brands are among the eight biggest brands in Europe. More than 41,000 people work for the Carlsberg Group, and our products are sold in more than 150 markets. In 2011, the Carlsberg Group sold more than 115 million hectolitres of beer, which is about 34 billion bottles of beer.

NEWS is published quarterly by Carlsberg in Danish and English. In case of any discrepancy between the two versions, the Danish version shall apply. Circulation: 4,400. (incl. Danish circulation). Editorial staff: Anne-Marie Skov (responsible), Iben Steiness, Gitte Sillemann and Jeanett Glenthøj. Layout and production:­ Kontrapunkt. Carlsberg A/S, CVR-NR. 61056416, Ny Carlsberg Vej 100, DK-1799 Copenhagen V, Tel: +45 33 27 33 00, E-mail: [email protected], www.carlsberggroup.com. ­

Q3 November 2012 3

Dear Carlsberg shareholder

Welcome to this edition of News. Our gains were driven by innovations, revi- Q3 performance was in line with our talisation of local brands and roll-out of expectations and I am very pleased that our international premium portfolio. The we continued to gain market share across rejuvenated Tuborg, which we told you our three regions. about in the Q2 edition of News, delivered very strong results and achieved almost Our positive market share performance 60% volume growth in Asia this year. was a result of our sustained support to our international premium brands and For the first three quarters of the year, local power brands. Our international organic net revenue for the Group grew premium brand portfolio encompasses by 2%. Due to destocking in in Q1, the Carlsberg, Tuborg, Kronenbourg 1664, bad weather in in Q2 and Grimbergen and Somersby brands which July, and different phasing of sales and all have delivered very positive results this marketing investments this year versus year. On page 6, we have devoted an arti- last year, operating profit declined. In Q3, cle to Kronenbourg 1664 to give you some operating profit was however up by DKK insight into this sophisticated French beer 167m with significant contribution from Market share gains brand and its expansion into new markets. Eastern Europe and Asia. As our results Page 8 tells you about a Christmas for Q3 were in line with our expectations, continued across our campaign that we are launching for the we reiterate our 2012 earnings outlook. three regions in Q3. Carlsberg brand and in which the illustra- From page 12 onwards, you can read tion on the cover of this magazine plays about our nine-month-results. an important part. In a world where we increasingly are Despite a challenging market environment, faced with increasingly tight marketing we managed to grow our Western European regulation, higher taxes in many markets business. With a 1% organic beer volume and health concerns, it is important that growth compared to a 2-3% market decline, we work on promoting the reputation of we outperformed the market and strength- and knowledge about beer in order to ened our market share across the region. grow the beer category and sustain our license to operate. For this purpose, we In Eastern Europe, the large Russian mar- have initiated a series of actions which ket grew slightly in the first nine months. you can read about on page 4. It is with pleasure that I can report that we again in Q3 grew our market share versus I hope you will enjoy reading this edition the previous quarter as well as versus Q3 of News and I would like to take the last year. During 2011 and in the beginning opportunity to wish you a very happy of 2012, we implemented many changes holiday season. and initiatives throughout our commercial organisation in Russia and within the gen- eral management of the Russian business. These changes proved right and are now Cheers showing positive results.

All our Asian markets grew for the nine months and our strong market share Jørgen Buhl Rasmussen momentum continued. Our market share President & CEO 4 News

Thirst for Beer

People have been enjoying beer for millennia and to make sure that this great tradition endures, Carlsberg has launched its “Thirst for Beer” initiative. As a key strategic project, Thirst for Beer is drawing on the strengths of the entire Carlsberg Group to help grow the image of beer.

Many factors influence the consumption there is a misperception that drinking beer Tracking progress and perception of beer. Cultural shifts, is unhealthy or irresponsible. “With the new tax laws, societal attitudes and image of beer eroding, it’s crucial that we To measure the advancement of beer marketing regulations all have an impact also focus on the category,” says Morten. conception among stakeholders and the on consumer habits and attitudes. When efficiency of the Thirst for Beer initiative, combined, these factors may cultivate The wine segment has had great success Carlsberg will be assessing the attitude a negative image of beer, which may in associating wine with health benefits. toward beer on an annual basis. “We sur- return affect sales volumes, and in fact, “But it’s all just perception. There are no vey customers, consumers, stakeholders the beer category is flat or shrinking in facts to justify that wine is healthier than and even policymakers to find out how many mature markets. As a response to beer – and the beer category offers just Carlsberg is perceived and how we are this and in close cooperation with other as much variety.” seen as brewers – and to identify where global brewers and brewers’ associations, we need to improve and where we are Carlsberg is working on promoting the By focusing on the wider beer category succeeding in our efforts,” says Morten. reputation of beer in order to grow the and not just on selected brands, Thirst for beer category and sustain the brewers’ Beer is about reaching as many people license to operate. The areas of coopera- as possible. “We need to get the facts out tion include efforts to develop and man- and profile beer as a refreshing, low-alcohol age self-regulation schemes and increase beverage made from natural ingredients awareness about beer and the brewers’ and with a positive impact on health Global action to reduce harmful contribution to the communities in which when consumed in moderation,” says use of alcohol they operate. Morten. “People have been beer In addition to Thirst for Beer and the cooperation for thousands of years. There are literally with brewers and brewers’ associations, Carlsberg But Carlsberg has also launched its own hundreds of varieties, so there’s a perfect also works in a broader context to promote initiative, namely Thirst for Beer. Aimed brew for any occasion or meal.” responsible consumption of beer as a unique at boosting the image and reputation and refreshing drink of moderation. In October, of beer, Thirst for Beer addresses issues the Group announced that it has teamed up with Planting the seeds with a toolkit which affect everyone, from consumers a group of global beer, wine and spirits producers to policymakers. “We want beer to be While Carlsberg cannot alter the percep- to commit to joint actions to strengthen and cherished and appreciated by consumers tion of beer overnight, it can plant the right expand existing efforts and contribute to reducing and the wider stakeholder audience,” seeds for change. “We’re trying to build a the harmful use of alcohol in five areas: says Thirst for Beer Director Morten beer movement,” explains Morten, “and • Reducing under-age drinking Nielsen. “We want them to see it as the we need everyone on board – friends, • Strengthening and expanding marketing codes right choice for any occasion, such as the media, policymakers, experts and of of practice perfect accompaniment to a great meal course all the employees of the Carlsberg • Providing consumer information and responsible or an evening with friends. We want them Group – so we’ve created a toolkit to help product innovation to recognise its quality when it’s brewed us get there.” • Reducing drinking and driving the right way.” • Enlisting the support of retailers to reduce The toolkit is available for all Carlsberg’s harmful drinking markets and is based on best practices To emphasise our commitment to the five areas, Targeting the category from around the world. It contains key facts Carlsberg will from 2013 report on how we are Consumers today are overwhelmed by about beer, a guide to engaging with stake- progressing on the commitments. choices. In some markets, beer has lost holders through both online and offline ground to wine, and in some markets, media and ideas for creative execution. Q3 November 2012 5 6 News

L’art de vivre: Kronenbourg 1664 offers a taste of France

With its French roots, unique flavours, and exceptional ingredients, Kronenbourg 1664 is a longstanding favourite of beer connoisseurs. Being part of the Carlsberg Group since 2008, Kronenbourg 1664 is now available in 65 markets – and one of the world’s fastest expanding beer brands.

Following Carlsberg’s acquisition of the Kronenbourg 1664 beer’s geographic expansion and promotion has helped it to brand in connection with the Scottish & Newcastle transac- a leading position in the international premium beer market. tion, it became apparent that a relaunch of the brand was In fact, Kronenbourg 1664’s distinctive French positioning needed. Thanks to a number of effective initiatives over the helps fill a special niche in many Carlsberg markets. “France past two years – as well as a timeless, compelling brand has a uniquely consistent image around the world,” explains – the relaunch of Kronenbourg 1664 has been a success. The Laurent. “This image alone gives Kronenbourg 1664 certain Carlsberg Group’s super-premium French beer is now availa- credentials in the beer category. Consumers associate ble in 65 markets, and its , Kronenbourg 1664 France with luxury goods, gastronomy and good taste, and Blanc, is available in 17 markets – with more soon to come. we can use this perception of the French culture to connect with beer drinkers when we enter a new market.” “When we started out, there was a downward trend in terms of sales,” explains Carlsberg’s International Marketing Director The taste of French summer for Kronenbourg 1664, Laurent Helbert. “But two years ago, we entered a new phase of our relaunch and we saw Building on this essence of French culture, the international sales begin to increase. This trend is especially true in new roll-out of Kronenbourg 1664 Blanc was initiated last year. markets, such as Canada, USA, and Asia. And Kronenbourg “Our new wheat beer is a great complement to our classic 1664 is now one of the fastest growing brands in Russia.” lager. It has a unique flavour that’s fresh and fruity,” says Laurent. “It goes down smoothly, with just a hint of bitter- ness, and it comes in a modern, elegant blue bottle.” A luxury brand for refined tastes In 1664, Jérôme Hatt founded a brewery in the centre of With a hint of citrus, the slightly sweet, refreshing taste is in the Alsace region, which is famous for its proving a big hit in key markets – especially in Asia, where aromatic Strisselspalt (the ‘caviar’ of hops). The version wheat are new. The Kronenbourg 1664 Blanc: “Un- of Kronenbourg 1664 we know today hit the French market mask the Taste of French Summer” campaign was recently in 1952, and the consumers immediately fell for its golden rolled out in a number of Asian markets, including Malaysia colour, distinctive aroma and hint of bitterness. and China. The campaign is designed to evoke the essence of France and help Kronenbourg 1664 Blanc penetrate the Today, Kronenbourg 1664 is the most famous French beer in market. “As a super-premium brand in Asia, Kronenbourg the world, and it is also a bestselling premium beer in France. 1664 Blanc unites refined elegance, fine food and inspiring It is a beer which embodies France’s reputation for gourmet company – it’s the perfect way to bring French culture to food and beverages. Being part of the Carlsberg Group, the life,” says Laurent. Q3 November 2012 7

the last few years, we have introduced new brews, limited Celebrating with Kronenbourg 1664 edition packaging, and promotional initiatives that encourage Other activities aimed at promoting the brand include the consumers to discover the flavours and distinctive ingredients. Bastille Day (French National Day, 14 July) celebrations. It all adds up to positive sales growth year on year.” So even Participating cities hold French-style street parties featuring though the brand has been around for 350 years, Carlsberg live music, French specialties, food, activities, entertainment is making sure that Kronenbourg 1664 remains the sophisti- and, of course, Kronenbourg 1664. cated choice of today’s most discerning consumers.

“Bastille Day events are already held in cities around the world, so it’s a great opportunity for the brand,” says Laurent. “It’s an iconic annual rendezvous with consumers during our peak season.” The activity kicked off in selected markets in 2011, and will expand each year. Markets throughout Europe, in China, Australia, USA and elsewhere are all gearing up for their own Bastille Day celebrations with Kronenbourg 1664. About Kronenbourg 1664 • A malty, fruity lager brewed with aromatic Strisselspalt hops (a hop exclusive to the Timeless taste in a contemporary brand Alsace region) and pure mineral water • Beer type: continental premium lager As a super-premium beer in the Carlsberg portfolio, Kronen- • Alcohol by volume: 5.0% bourg 1664 is leveraging the many exclusive connotations • Colour: darkish with golden highlights of France. And now Kronenbourg 1664 Blanc is tapping into • Taste: slightly bitter and sweet with a distinct even more opportunities for the Carlsberg Group. “We are citrus hop taste and a refreshing, clean, crisp staying on top of emerging consumer trends – and that uncut flavour includes the taste of the growing number of beer connois- seurs,” says Laurent. “In conjunction with the relaunch over 8 News

THE GIFT YOU CAN’T Carlsberg holiday WAIT TO OPEN... campaign brings joy and beer

In many parts of the world, the Christmas season is the busiest time of the year for beer in both on and off trade – and it is getting busier and busier. With a global Christmas campaign, Carlsberg is set to light up the holidays in our markets around the world.

The Christmas campaign will feature limited edition Reward a friend with a Carlsberg gift cans, bottles, packaging and displays showcasing special Carlsberg snowflakes and sparkling Christmas trees. Some In some markets, the campaign also includes a Facebook app markets are even launching a Facebook app. that lets fans nominate a friend to receive an exciting holiday gift from Carlsberg – anything from a beer mug to football tickets. With consumers spending up to one-fourth of their yearly personal expenditure from mid-November to early January, “During the holidays, people exchange gifts and warm it is no surprise that many retailers make the bulk of their wishes with friends, so we’re asking our fans to nominate profits during this period. “This makes it the perfect time for a friend who deserves an extra present this holiday sea- our holiday campaign to reach out to shoppers and to drive son,” says Thomas. “They can tell us how this friend has sales through merry displays in stores and festive new holiday stepped up and done the right thing and why the friend designs,” explains Thomas Moradpour, VP Carlsberg Brand. deserves a reward.” The lucky winners will be announced on the Carlsberg Facebook wall. Glowing in the dark The campaign is supported by innovative ‘Limited Edition packs’ which make Carlsberg stand out even more through Carlsberg’s holiday campaign includes: unique graphics and design. • Unique holiday design elements, including Carlsberg hop leaf snowflakes and a frost effect As an extra feature, Carlsberg’s Christmas cans also glow • Some markets will launch a Facebook app where consu- in the dark in some markets. “The glow elements are an in- mers have the chance to win holiday gifts for their friends spiration to literally light up the holidays, and hopefully beer • Some markets will feature glow-in-the-dark cans and drinkers will see this surprise as a fun way of getting into the bottle neck labels Christmas spirit at holiday parties,” says Jessica Robertson, Design Director in Group Sales, Marketing & Innovation. Q3 November 2012 9

THE GIFT YOU CAN’T WAIT TO OPEN... 10 News

A glimpse of Carlsberg

Carlsberg India acquires its 6th Welcome to the Carlsberg Group Brand Store & Webshop brewery in Haryana Carlsberg, Tuborg and Somersby fans worldwide can order cool merchandise online. Visit the Webshop Carlsberg India has acquired Kool at this link: www.thirstforgreat.com Limited in Dharuhera, Haryana, India. Kool Breweries Limited is the 6th brewery in Carlsberg India’s portfolio which includes breweries in Paonta Sahib, Alwar, Aurangabad, Kolkata, and Hyderabad, respectively. The acquisition of Kool Breweries Limited is yet another step on Carlsberg’s path to becoming a more significant player in the attractive Indian growth market.

Jørgen Buhl Rasmussen joins the Danish Prime Minister in China Carlsberg – one of Copenhagen’s top 10 highlights In September, the Danish Prime Minister Helle Why are the Danes consistently ranked among the happiest people on earth? According to Newsweek’s Thorning-Schmidt paid an official visit to China online editorial, the reason may be Carlsberg. In the article, Newsweek takes a quick glimpse at the together with representatives of Danish trade tourist attractions and places of interest which Copenhagen has to offer. Carlsberg and its visitor centre and industry including Carlsberg’s President & in Copenhagen are identified as one of ten travel highlights, other highlights being Louisiana – the most CEO Jørgen Buhl Rasmussen. visited museum in – and Lagkagehuset – the renowned bakery chain. During the visit, the representatives and Helle Furthermore, Newsweek tells its readers that the Carlsberg brewery has a Royal Warrant and that the brewery Thorning-Schmidt met with high-ranking in the past donated significant pieces of art, including The Little Mermaid, to the city of Copenhagen. Chinese government representatives, and Carlsberg hosted a reception at the Danish embassy in Beijing celebrating the good rela- tions between the two countries and the fact Capital Markets Day in Russia that the first Carlsberg was shipped to China approximately one and a half centuries ago. On 12-13 September, Carlsberg hosted a Capital Markets Day in Russia in order to provide analysts and investors with more insight into the current Russian business and into Carlsberg’s response to the chal- Following the visit, Jørgen Buhl-Rasmussen lenges of recent years. The event was attended by most of Carlsberg’s 40 analysts and a number of attended “The Annual Meeting of the New major investors and journalists. Champions 2012” at the World Economic Forum in Tianjin. At this meeting, he took part In addition to listening to presentations given by Carlsberg’s President & CEO, Jørgen Buhl Rasmussen, in a panel discussion together with a number Baltika’s CEO, Isaac Sheps, Baltika’s marketing VP, Denis Sherstennikov, and Baltika’s sales VP, Evgeny of prominent Asian business people regarding Shevchenko, the participants were also invited to visit the Baltika brewery in St. Petersburg and to visit the development of the Asian consumer industry. typical Russian retail outlets. Q3 November 2012 11

Jacobsen launches new Limited Edition Single Malt Ale

Made with malt from a single field on the Danish island of Funen, the new Jacobsen Limited Edition Single Malt Ale, which premiered at the Jacobsen Brewhouse in August, is really exceptional.

The was grown and harvested on Funen and the field yielded approximately 1,600 kilos of barley, which was sent for malting in France. The barley resulted in 1,500 kilos of base malt of which 150 kilos were roasted further in order to provide the finished beer with more colour and flavour. This process resulted in a symphony of taste sensations ranging from ‘toasted bread’, toffee, chocolate and roasted coffee. The many interesting flavours contribute to the finished beer and it is truly a full taste experience.

Carlsberg signs agreement with UNIDO to implement major environmental projects in Russia

The Carlsberg Group and Baltika Breweries have committed to invest up to RUB 1 billion (around EUR 25 million) in environmental pro- jects in Russia related to water, agriculture and climate change. The investment will take place in cooperation with the United Nations Indus- trial Development Organization (UNIDO). This public-private partnership is the first of its kind in Russia and represents an entirely new way of perceiving environmental sustainability. It is expected that the partnership will be beneficial to the environment by reducing the consump- tion of natural resources, the pollution, and the greenhouse gas emissions while also improving the agroecosystem in Russia.

Carlsberg in Thailand

The Carlsberg Group has entered into a strategic partnership with Singha Corpora- tion, the leading brewery group in Thailand and owner of the best-selling Thai beer brand, Leo Beer, as well as the very popular “Where’s the Party?” launches in Hong Kong and Singapore Singha Beer brand. Under the new partner- ship, Singha Corporation and Carlsberg will Ever since the popular concept “Where’s the party?” was first introduced in four years ago, it form a joint venture which will oversee the has taken consumers by storm with unique parties presenting a special mix of live bands, cool DJs and, marketing, sale and distribution of Carlsberg’s of course, Carlsberg beer. While the venues and cities of “Where’s The Party?” differ, one common thread international beer brands in Thailand. It remains – the location remains a secret until the day itself! is also the intention to launch Singha in selected markets outside of Thailand through The first Asian “Where’s the party” event was held in Malaysia and this November Carlsberg will be throw- Carlsberg Group’s international network. ing “Where’s the party?” events in both Hong Kong and Singapore. In order to get tickets, consumers have had to score invites in a Facebook contest in September and October in both Singapore and Hong Kong. For Carlsberg, the Thai beer market repre- In the contest, loyal Carlsberg fans and curious party-goers were encouraged to step up and discover their sents a great opportunity and for Singha adventurous streak and were then given 20 questions on moral quandary. The winners were selected the partnership is a unique way to strengthen based on decisions made in the shortest time. its premium portfolio in Thailand. At the same time, the partnership also represents an exciting possibility to expand the global World’s first Grimbergen flagship presence of Singha beer. bar launched in Singapore

The Belgian abbey beer Grimbergen has made a splash on Singapore’s beer scene with the launch of the Grimbergen 1128 flagship bar, the first of its kind in the world. Situated at the edge of the bustling Singapore city centre, this new al fresco bar, owned and managed by one of Carlsberg’s proud on-trade partners in Singapore, carries the Grimbergen identity right down to the interior design of the Grimbergen bar. 12 News

Interim results as at 30 September 2012 Q3 performance in line with expectations – continued market share improvements across regions

BUSINESS DEVELOPMENT and a net acquisition impact of +1%. leverage in Q1 due to the Russian destock- Organic net revenue dynamics improved ing; and the different phasing of sales and during the nine months with organic net marketing investments versus last year. Group financial highlights revenue growth of 4% in Q3 driven by Dynamics improved in Q3 and organic Overall market growth remained mixed a very positive price/mix for beer of 4% operating profit grew 5% in the quarter across regions. In Western Europe, total versus 2% for the first nine months. due to lower marketing investments versus market, excluding , declined by last year and positive price/mix. an estimated 2-3% impacted by bad Cost of sales per hl grew in line with weather in Q2 and July. The Russian expectations. Organic gross profit per hl Reported net profit grew significantly to beer market was slightly up. In Asia, grew by 1%. Mainly due to the higher DKK 5,411m impacted positively by the all markets continued to grow. input costs across all regions, gross profit capital gain in Q2 from the sale of the margin decreased by 90bp to 49.8%. Copenhagen brewery site. Adjusted net Group organic beer volume was flat for profit (adjusted for post-tax impact of the nine months as well as for Q3. On a Operating expenses grew 4% organically special items) was DKK 4,288m, down comparable basis, i.e. adjusting for the Q1 (Q3: +3%), due to slightly higher logis- 3% versus 2011 (DKK 4,408m). destocking in Russia, beer volumes grew tic costs in Eastern Europe and higher organically by 1%. Reported beer volumes sales and marketing investments across For Q3, adjusted net profit grew by 7% grew by 2%, positively impacted by ac- the Group, predominantly in the first six to DKK 2,146m (DKK 2,012m in 2011). quisitions in Asia. Pro-rata Group volumes months of the year with an important of other beverages declined slightly, driver being the activation of EURO 2012 Free cash flow improved strongly to DKK impacted by a negative development and the launch of the rejuvenated Tuborg 5,146m (DKK 2,585m in 2011) driven by of the soft drinks markets in Denmark. brand in Asia and Russia. an improved working capital and the proceeds from the sale of the Copenha- Net revenue grew by 5% to DKK 51,269m, Group operating profit declined organically gen brewery site. Average trade working as a result of a 2% organic growth (total by 9% to DKK 7,641m and operating mar- capital to net revenue was reduced to beverage volume of -1% and positive gin declined to 14.9% as a result of higher 1.3% (MAT) end of Q3 2012 vs. 1.9% at price/mix of +3%), +2% from currencies input costs; the negative operational the end of 2011.

Carlsberg Group

Q3 Change Change DKK million 2011 Organic Acq., net FX 2012 Reported Beer (million hl) 33.5 0% 2% 34.1 2% Other beverages (million hl) 4.9 3% 1% 5.1 5% Net revenue 17,440 4% 1% 3% 18,810 8% Operating profit 3,284 5% 2% 3% 3,596 10% Operating margin (%) 18.8 19.1 30bp

9 mths Change Change DKK million 2011 Organic Acq., net FX 2012 Reported Beer (million hl) 91.8 0% 2% 93.3 2% Other beverages (million hl) 14.6 -2% 2% 14.5 0% Net revenue 48,708 2% 1% 2% 51,269 5% Operating profit 7,982 -9% 3% 2% 7,641 -4% Operating margin (%) 16.4 14.9 -150bp Q3 November 2012 13

In July, the Group successfully placed a 7 year markets across Europe and Asia. This, 2012 earnings expectations EUR 500m bond with a coupon of 2.625%. coupled with a strong performance in the French market, resulted in 50% growth in Following the Q3 performance, which was in Grimbergen volumes. line with the Group’s expectations, we reiter- Group operational highlights ate our earnings outlook for the full year: The Group continued to deliver solid mar- A number of CSR activities took place • Operating profit before special items ket share performance in Western Europe across the Group. In early October, at a at the level of 2011 and Asia, with around 50bp improve- conference hosted by the International • Slightly growing adjusted net profit1 ment in both regions. In Eastern Europe, Centre for Alcohol Policy (ICAP), Carlsberg the positive Russian market share trend teamed up with other global producers of continued in Q3, thus showing sequential beer, wine, and spirits to commit to joint improvements since Q4 2011 and versus actions to strengthen and expand existing Q3 2011. In , we gained share as efforts to reduce the harmful use of alcohol. Western Europe we continued to outperform the market. The Group, and its subsidiary Baltika Contributing to the market share growth Breweries, has also announced that it was strong performance of our interna- over a period of 5 years will invest ap- tional premium brands: Carlsberg, Tuborg, prox. EUR 25m in environmental projects Kronenbourg 1664, Grimbergen, and in Russia related to water, agriculture and Somersby. climate change. This will be done in part- nership with the United Nations Industrial A key driver behind the 9% volume growth Development Organisation (UNIDO). of the Carlsberg brand in its premium markets was the successful activation Structural changes of the EURO 2012 sponsorship in the first half of the year. The brand grew across On April 12, the Group announced the all three regions with particularly strong establishment of a consortium, consisting performance in France, Poland, Norway, of a group of Danish investors and the Germany, China, Malaysia, and India. Carlsberg Group, which will develop the former brewery site in Copenhagen. The The Western European beer market was The Tuborg brand grew 6%. An impor- total value of the transaction was ap- challenging, impacted by poor weather tant initiative was the rejuvenation of proximately DKK 2.5bn. As a result, conditions during the summer and difficult the brand at the beginning of 2012 with the Group booked a capital gain of DKK consumer dynamics in several markets. The a new campaign which included a new 1.7bn in special items and cash proceeds Polish market, which grew approximately tag line, new visual identity and new of DKK 1.9bn in Q2. 6%, was a notable exception from the communication. Major activities were overall Western European trend. Excluding the introduction of Tuborg in China in In Q1, the Group increased its owner- Poland, beer markets in Western Europe April and the launch of the new 3G ship in several businesses in the Balkan declined by an estimated 2-3%. Tuborg bottle in Russia and India in Q1, area and now holds 100% ownership of which both yielded very good results. the subsidiaries in Serbia, Croatia and We continued to gain overall market Bulgaria. share in Western Europe. The market The roll-out of our cider brand, Somersby, share gain was supported by a focused continued and we developed Somers- On 21 August, the Group announced commercial agenda, including the roll-out by Double Press, which is a premium, the successful completion of the volun- and further development of our value naturally refreshing, dry cider. Somersby tary offer to Baltika Breweries minority management tools; our improved port- has been launched in 10 new markets shareholders through which the Group in- folio optimisation tool; and a balanced this year and is now available in 22 creased its ownership of Baltika Brewer- focus on and investments behind our markets worldwide. Driven by category ies to 96.77%. On 17 September the Group international premium brands and local growth and the significant geographical announced a compulsory purchase of the power brands. The Group gained approxi- expansion, the brand almost doubled its remaining shares in Baltika Breweries. mately 50bp market share for the region volumes. with particularly good performances At the beginning of October, Baltika achieved in , Sweden, Poland, UK, Grimbergen, our super-premium Belgium Breweries was delisted from the Russian and Serbia. abbey ale, was launched in nine new stock exchange.

1 Adjusted net profit 2011 of DKK 5,.203m equals 2011 reported net profit excluding special items after tax 14 News

Key figures and financial ratios

Q3 Q3 9 mths 9 mths DKK million 2012 2011 2012 2011 2011

Total sales volumes (million hl) Beer 39.7 40.4 109.7 108.9 139.8 Other beverages 5.9 5.7 16.7 16.9 22.2

Pro rata volumes (million hl) Beer 34.1 33.5 93.3 91.8 118.7 Other beverages 5.1 5.0 14.5 14.6 19.2

Income statement Net revenue 18,810 17,440 51,269 48,708 63,561 Operating profit before special items 3,596 3,284 7,641 7,982 9,816 Special items, net -6 991 1,391 806 -268 Financial items, net -442 -344 -1,320 -1,528 -2,018 Profit before tax 3,148 3,931 7,712 7,260 7,530 Corporation tax -787 -734 -1,776 -1,566 -1,838 Consolidated profit 2,361 3,197 5,936 5,694 5,692

Attributable to: Non-controlling interests 225 191 521 460 543 Shareholders in Carlsberg A/S 2,136 3,006 5,415 5,234 5,149 Shareholders in Carlsberg A/S, adjusted* 2,146 2,012 4,288 4,408 5,203

Statement of financial position Total assets - - 155,651 145,069 147,714 Invested capital - - 121,365 116,841 118,196 Interest-bearing debt, net - - 31,790 32,680 32,460 Equity, shareholders in Carlsberg A/S - - 71,372 64,495 65,866

Statement of cash flows Cash flow from operating activities 3,430 2,551 6,713 5,495 8,813 Cash flow from investing activities -901 -841 -1,567 -2,910 -4,883 Free cash flow 2,529 1,710 5,146 2,585 3,930

Financial ratios Operating margin % 19.1 18.8 14.9 16.4 15.4 Return on average invested capital (ROIC) % - - 7.8 7.8 8.4 Equity ratio % - - 45.9 44.5 44.6 Debt/equity ratio (financial gearing) x - - 0.42 0.47 0.45 Interest cover x - - 5.79 5.20 4.86

Stock market ratios Earnings per share (EPS) DKK 14.0 19.7 35.5 34.3 33.8 Earnings per share (EPS), adjusted* DKK 14.1 13.2 28.1 28.9 34.1 Cash flow from operating activities per share (CFPS) DKK 22.5 16.7 44.0 36.0 57.7 Free cash flow per share F( CFPS) DKK 16.5 11.2 33.7 16.9 25.7 Share price (B-shares) DKK - - 511 331 405 Number of shares (period-end) 1,000 - - 152,555 152,514 152,523 Number of shares (average, excl. Treasury shares) 1,000 152,553 152,545 152,545 152,545 152,538

* Adjusted for special items net of tax. In accordance with IFRS 3 requirements, the final purchase price allocation of the fair value of identified assets, liabilities and contingent liabilities in step acquisitions and business combinations have changed comparative figures. Q3 November 2012 15

Following last year’s repositioning of the country mix, as our Polish business con- the premium category and this negatively Carlsberg brand, a very important com- tinued to grow well ahead of the region, impacted our mainstream brand, Kro- mercial activity for the brand this year was and the ongoing negative channel mix nenbourg. Our premium brands grew and the EURO 2012 sponsorship in the first half with off-trade taking share from on-trade. gained market share but were not able of the year. Significant resources were put With less negative country mix in Q3, to offset the pressure on the mainstream into the successful execution of the event price/mix was +2% for Q3. category, and consequently, our volume and the brand grew approximately 7% in market share in France declined. its premium markets in the region. We delivered solid market share improve- ment in Sweden due to good performance Q3 operating profit grew organically by Innovations remain a key priority and new in the off-trade channel driven by our 1% while nine months operating profit products, such as Garage Hard Lemonade local power brands and Somersby. Our declined organically by 5%. Reported op- in Finland and Denmark and various line Finnish business grew market share erating profit was DKK 4,083m. Operating extensions of local power brands, were strongly influenced by category manage- margin declined by 80bp to 14.3% (-40bp launched in the first half of the year prior ment and retailers having a better bal- in Q3). The decline in operating profit mar- to the peak season. In addition, roll-out ance between brands and private gin was mainly because of expected higher and support of our international premium label promotions in the off-trade. input costs and a negative country mix brands continued throughout the region. worsened by bad weather in Q2 and July. The Group’s proprietary PET-based, Our Polish business continued its strong modular draught beer system, which has positive trend. The Polish market grew been an important addition to our port- by approximately 6% and our volumes folio in Italy, was launched in Greece and grew almost 15%, supported by strong introduced in Sweden. investment in, and excellent execution Eastern Europe of, the EURO 2012 sponsorship. Our vol- Driven by our strong market share im- ume market share grew by approximately provement, our beer volumes grew organ- 100bp and reached 17.5%, with our value ically by 1% (Q3: 0%) despite the overall share growing slightly more. market decline, with particularly good results in markets such as Poland, Fin- Our UK volumes declined by 3% in land, Italy, Serbia and Export & License. a market that was down by 4%. The Other beverages declined organically by poor weather during the summer more 4% (flat in Q3), mainly due to lower soft than offset the positive impact from the drink volumes in Denmark. Total volumes, Diamond Jubilee and EURO 2012. Driven including non-beer beverages, were flat. by particularly good performance by our on-trade brand portfolio, our market Organic net revenue was flat (+2% for share further strengthened, growing by Q3). Reported net revenue grew by 1% 20bp to 15.7%. to DKK 28,552m. Organic net revenue for beer grew by 1%. The French market was flat in volume terms while the value of the market The overall Eastern European beer We achieved low single-digit price continues to grow due to the trend to- markets grew modestly. The Russian increases across markets in the region. wards greater premiumisation. Consumers market was slightly up (estimated -2-3% Price/mix was flat mainly as a result of continue to trade up from mainstream to in Q3) while the Ukrainian market grew

WESTERN EUROPE

Q3 Change Change DKK million 2011 Organic Acq., net FX 2012 Reported Beer (million hl) 13.9 0% 0% 13.9 0% Other beverages (million hl) 4.0 0% 0% 4.0 0% Net revenue 10,029 2% 0% 1% 10,361 3% Operating profit 1,789 1% 0% 0% 1,807 1% Operating margin (%) 17.8 17.4 -40bp

9 mths Change Change DKK million 2011 Organic Acq., net FX 2012 Reported Beer (million hl) 38.2 1% 0% 38.6 1% Other beverages (million hl) 11.4 -4% 0% 10.9 -4% Net revenue 28,164 0% 0% 1% 28,552 1% Operating profit 4,253 -5% 0% 1% 4,083 -4% Operating margin (%) 15.1 14.3 -80bp 16 News

by approximately 1%. During the first six versus Q2 in all price segments but pre- Organic net revenue for the region was months, the Russian market benefitted mium where share was flat versus Q2. flat. Supported by a positive currency from pre-election income increases. The In addition to the changes made within impact, reported net revenue grew by market decline in Q3 is expected to be a our Russian sales, channel and trade mar- 2% to DKK 15,594m. Organic net revenue temporary reaction to the benefits of the keting organisation, we continue to drive growth accelerated to 4% in Q3 due to pre-election income increases levelling a very focused brand agenda in Russia. the improved volume dynamics. off and inflation normalising as well as a The largest international premium brand short-term transitional disruption follow- in Russia, Tuborg (with a segment market Driven by positive pricing across most of ing the closures of non-stationary outlets share of 24%), delivered solid growth our Eastern European markets and posi- ahead of the restrictions coming into ef- following the rejuvenation of the brand in tive mix, we achieved a positive price/mix fect on 1 January 2013. We still expect the Q1 with the introduction of the 3G bottle. for beer of 7% (Q3: 6%). total Russian market to be flattish for the Plans are in place to rebuild the strength full year supported by underlying healthy of the Holsten brand. In Russia, price increases in late 2011 and consumer dynamics. this year’s price increases in March, May Our business in Ukraine continued its and August more than offset the excise Throughout 2011 and the beginning of positive trend with a 40bp market share tax increase in January 2012. In addition, 2012, many changes were implemented improvement to 29.4%. The main drivers Russian consumers continued to trade up in our Russian business, both in the were strong performance of the Lvivske both within and between categories and commercial organisation as well as and Baltika brands as well as successful also shifted to more expensive packaging within management. These changes activation of the EURO 2012 sponsorship, types. Hence, our Russian price/mix was are key drivers behind the sustained supporting both local brand growth and +5%. Another price increase of around 3% sequential market share improvement a very positive performance of the Carls- was announced in early October. so far this year. For the third quarter in berg brand. a row, our Russian volume market share Operating profit declined organically by improved sequentially reaching 38.9% in The Eastern European beer volumes 10% to DKK 3,128m with strong organic Q3 compared to 37.9% in Q2 and 37.8% declined organically by 7% to 34.3m hl. growth in Q3 of 17%. Operating profit in Q3 2011. Year-to-date, our market Adjusted for Russian destocking in Q1 and margin moved significantly throughout share is 38.2% (2011: 38.6%) (source: , where production has been the year; 260bp for the nine months, but Nielsen Retail Audit, Urban & Rural suspended due to a lack of raw materials +290bp for Q3. The change in operating Russia). following increasing currency conversion profit and margin development be- difficulties, organic beer volume decline tween the quarters were in line with our Balancing volume and value share was 1%. expectations and primarily driven by the remains important and our Russian value operational leverage effect from Russian share year-to-date and in Q3 developed Our Russian beer volumes (shipments) destocking and different phasing of sales in line with our volume share. Driven by declined by 5% whereas our in-market- and marketing investments between strong performance of the Tuborg brand sales (“off-take”) grew by 1% versus the quarters versus last year. in super premium and the Baltika and flat market. Our Russian Q3 volumes Zatecky Gus brands in mainstream, our (shipments) grew by 2% and our in- market share trend in Q3 was positive market-sales (“off-take”) grew by 1%.

EASTERN EUROPE

Q3 Change Change DKK million 2011 Organic Acq., net FX 2012 Reported Beer (million hl) 13.3 -2% 0% 13.0 -2% Other beverages (million hl) 0.5 13% 0% 0.5 13% Net revenue 5,578 4% 0% 4% 6,029 8% Operating profit 1,315 17% 0% 5% 1,600 22% Operating margin (%) 23.6 26.5 290bp

9 mths Change Change DKK million 2011 Organic Acq., net FX 2012 Reported Beer (million hl) 36.9 -7% 0% 34.3 -7% Other beverages (million hl) 1,7 -6% 0% 1.6 -6% Net revenue 15,335 0% 0% 2% 15,594 2% Operating profit 3,482 -13% 0% 3% 3,128 -10% Operating margin (%) 22.7 20.1 -260bp Q3 November 2012 17

Investments in H1 were higher due to (Q3: 15%). Our volumes grew particularly Our businesses in Indochina continued EURO 2012 and marketing activities strongly in India, Cambodia, Vietnam, their very strong growth trend. Organic ahead of the advertising restrictions in Laos, and Nepal. beer volume growth in Indochina was Russia as of 23 July. more than 20% with all countries – The positive acquisition impact was a result Vietnam, Cambodia and Laos – deliver- Apart from phasing of marketing invest- of the increased ownership in Hue Brewery ing strong growth, mainly as a result of ments, operating profit was negatively (Vietnam) and Lao Brewery (Laos) in 2011; strong performances by the local power impacted by higher input costs, destock- in South Asian Breweries (India) in both brands, Angkor and Beer Lao. ing in Q1, higher logistics costs and the 2011 and 2012; and the Chongqing Xinghui suspension of production in Uzbekistan. Investment joint venture in China in 2011. In India, our volumes grew organically by Other beverages grew significantly by 38% approximately 45%. The growth was driv- (18% organic) due to a strong performance en by the Tuborg and Carlsberg brands, in Laos and Cambodia. with the rejuvenated Tuborg brand being a particular driver. We now have a 7% Asia Two important commercial activities in market share in India. In early October, Asia were the activation of EURO 2012 the Carlsberg Group expanded its posi- and the rejuvenation of the Tuborg brand. tion in India through the acquisition of a The EURO 2012 was well leveraged brewery in Dharuhera (Haryana). It is the across the region and provided impor- Group’s sixth brewery in India, adding to tant promotional opportunities for the our 5 breweries in Paonta Sahib, Alwar, Carlsberg brand. The brand grew more Aurangabad, Kolkata and Hyderabad. than 7% underpinned by commend- able performances in China, India, and The Asian region continued to deliver very Malaysia. The launch of Tuborg in China strong financial performance. Organic and the introduction of the new 3G bottle net revenue grew by 19% (Q3: 17%) and in India were important milestones for the reported net revenue (including currency Tuborg brand. The brand grew its volumes and acquisitions) grew by 38% (Q3: 32%). by nearly 60% across the Asian region Operating profit grew organically by 10% and accounted for more than 10% of the (Q3: 11%) and with reported growth of Group’s Tuborg volumes. 36% to DKK 1,366m.

Our Asian beer markets continued their Our Chinese market share grew slightly strong growth momentum with all mar- driven by the strong performance of our kets growing. international premium brands as we ex- panded distribution of both the Carlsberg Beer volumes increased organically by and Tuborg brands. Our overall Chinese 10% (Q3: 7%). Including acquisitions, volumes grew organically by 5% (8% beer volumes grew by 22% to 20.4m hl including acquisitions).

ASIA

Q3 Change Change DKK million 2011 Organic Acq., net FX 2012 Reported Beer (million hl) 6.3 7% 8% 7.2 15% Other beverages (million hl) 0.5 17% 13% 0.7 30% Net revenue 1,805 17% 9% 6% 2,389 32% Operating profit 389 11% 11% 7% 502 29% Operating margin (%) 21.5 21.0 -50bp

9 mths Change Change DKK million 2011 Organic Acq., net FX 2012 Reported Beer (million hl) 16.7 10% 12% 20.4 22% Other beverages (million hl) 1.5 18% 20% 2.1 38% Net revenue 5,103 19% 13% 6% 7,029 38% Operating profit 1,003 10% 19% 7% 1,366 36% Operating margin (%) 19.7 19.4 -30bp 18 News

Income statement

Q3 Q3 9 mths 9 mths DKK million 2012 2011 2012 2011 2011

Net revenue 18,810 17,440 51,269 48,708 63,561

Cost of sales -9,195 -8,476 -25,720 -24,031 -31,788

Gross profit 9,615 8,964 25,549 24,677 31,773

Sales and distribution expenses -5,043 -4,930 -15,027 -14,050 -18,483 Administrative expenses -1,041 -819 -3,115 -2,886 -3,903 Other operating income, net 26 4 140 143 249 Share of profit after tax, associates 39 65 94 98 180

Operating profit before special items 3.596 3,284 7,641 7,982 9,816

Special items, net -6 991 1,391 806 -268 Financial income 441 260 832 574 630 Financial expenses -883 -604 -2,152 -2,102 -2,648

Profit before tax 3,148 3,931 7,712 7,260 7,530

Corporation tax -787 -734 -1,776 -1,566 -1,838

Consolidated profit 2,361 3,197 5,936 5,694 5,692

Profit attributable to: Non-controlling interests 225 191 521 460 543 Shareholders in Carlsberg A/S 2,136 3,006 5,415 5,234 5,149

DKK

Earnings per share: Earnings per share 14.0 19.7 35.5 34.3 33.8 Earnings per share, diluted 14.0 19.7 35.5 34.2 33.7 Q3 November 2012 19

Statement of financial position

30 Sept 30 Sept 31 Dec DKK million 2012 2011 2011

Assets: Intangible assets 91,554 86,451 89,041 Property, plant and equipment 32,563 31,406 31,848 Financial assets 8,528 8,342 8,039

Total non-current assets 132,645 126,199 128,928

Inventories and trade receivables 12,640 12,163 12,205 Other receivables etc. 4,408 3,469 2,866 Cash and cash equivalents 5,932 3,136 3,145

Total current assets 22,980 18,768 18,216

Assets held for sale 26 102 570

Total assets 155,651 145,069 147,714

Equity and liabilities: Equity, shareholders in Carlsberg A/S 71,372 64,495 65,866 Non-controlling interests 3,447 5,356 5,763

Total equity 74,819 69,851 71,629

Borrowings 34,612 32,704 34,364 Deferred tax, retirement benefit obligations etc. 15,314 14,002 15,178

Total non-current liabilities 49,926 46,706 49,542

Borrowings 4,928 4,415 1,875 Trade payables 11,577 10,150 11,021 Deposits on returnable bottles and crates 1,414 1,290 1,291 Other current liabilities 12,968 12,623 11,528

Total current liabilities 30,887 28,478 25,715

Liabilities associated with assets held for sale 19 34 828

Total equity and liabilities 155,651 145,069 147,714 Overview

Share price 2012 FINANCIAL (DKK per share, Carlsberg B) CALENDAR 600 2013 550 ■ 500 18 February Financial statement as at 31 December 2012 450 ■ 26 February Annual report for 2012 400 ■ 21 March 350 Annual General Meeting ■ 7 May 300 Interim results for Q1 2013

April May June July ■ anuary March August 19 August ebruary October J F September November Interim results for Q2 2013 ■ 11. november Interim results for Q3 2013

People news

■ C laudia Schlossberger ■ Sør en Lauridsen ■ Phi lip Norley New SVP, Carlsberg Group HR New CEO, SOUTH ASIA New Managing Dircetor, Gorkha Brewery, Nepal Claudia Schlossberger has been appointed SVP, Søren Lauridsen has been appointed CEO South Global Human Resources Carlsberg Group as of Asia as of 1 August. The position is new and Philip Norley has been appointed Managing 17 September. Claudia Schlossberger comes from recognises the opportunities for collaboration Director, Gorkha Brewery as of 17 September. a position as Chief HR Officer with the Metro and synergies between Carlsberg’s businesses Philip Norley joins Carlsberg from SABMiller, Group as well as with Metro Cash & Carry, a on the Indian continent as well as the growing where he was Commercial Director in Ghana. position she has held since 2003. Prior to that, importance of the region. Since 2010, Søren Prior to this position, he held various manage- she held various senior HR leadership positions Lauridsen has been running Carlsberg’s Indian rial positions within the commercial area of across the Metro Group. Claudia Schlossberger business successfully and since June 2012, he has SABMiller around the world in countries such has been driving the establishment of a highly been overseeing the management of Carlsberg’s as Vietnam, Mozambique and Romania. Philip professional global HR set-up across the Metro business in Nepal on an interim basis. Søren Lau- Norley spent his early career in sales positions Group during the company’s globalisation pro- ridsen joined Carlsberg in 2005 as VP Marketing with Kellogg, initially in the UK and afterwards cess. Furthermore, she has a strong commercial in Poland and was promoted to Deputy MD, Lao in sales and marketing positions in Portugal background as well as a proven international Brewing Company in 2007. Prior to joining Carls- and Italy. In 1995, he moved into tobacco with track record within HR from Daimler Benz, where berg he held a number of Senior Commercial R J Reynolds in the Ukraine before joining she also held positions within marketing and roles in Unilever and Orkla Foods. SABMiller. sales and worked in Russia and India.

■ Tayfun Uner ■ Veli Pekka Tennila ■ Jør n Tolstrup Rohde New CEO, Vietnam New CEO, Baltics and Aldaris, NEW SVP, Western Europe Tayfun Uner has been appointed CEO Vietnam Veli Pekka Tennila has been appointed SVP Jørn Tolstrup Rohde has assumed sole as of 1 September. He comes from a position CEO Baltics as of 1 October. In addition, Veli responsibility for a new Western Europe region, as VP Group Strategy in Carlsberg’s headquar- Pekka Tennila will also take over the role which was previously set up as two separate ters in Copenhagen. The position has been as CEO of Aldaris as of 1 October. Veli Pekka regions (Northern Europe and Western Europe) created to build a cohesive national business in Tennila comes from a position as VP Sales & within the Carlsberg Group. The decision to Vietnam, increase focus and create a more in- Marketing Baltics, a position he has held since unite the two regions was made in order to tegrated organisation from the various wholly- October 2011. From 2008-2011, he was CEO further focus and align resources, whilst at the owned businesses and JV partner managed of Saku in Estonia and before that he held same time speeding up the implementation operations. Before joining Carlsberg, Tayfun various managerial positions at Carlsberg’s of common commercial capabilities and best Uner worked with McKinsey & Company for Finnish brewery, Sinebrychoff. practices across Carlsberg’s European markets. seven years and in sales and marketing with Procter & Gamble.