Agenda. Group Structure. Increasing profitability in mature Western Europe. Growth is still strong in Eastern Europe.

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1 Carlsberg A/S 1

2 Agenda Group Structure Increasing profitability in mature Western Europe Growth is still strong in Eastern Europe 2 Potential in Asia Carlsberg Brand

3 Group Structure CARLSBERG CARLSBERG FOUNDATION FOUNDATION Other Other Shareholders Shareholders (free (free flow) flow) 55% 45% CARLSBERG A/S CARLSBERG A/S 3 60% CARLSBERG CARLSBERG BREWERIES BREWERIES Other Other Activities Activities Carlsberg Research Center Real Estate Cash

4 Group Structure Carlsberg Foundation is the major share holder in Carlsberg A/S, and it is required by its charter to hold a minimum of 51% of the shares in Carlsberg A/S. Carlsberg A/S is a publicly quoted company which prime interest is a 60% holding of the shares in Carlsberg Breweries. 4 Carlsberg Breweries is one of the world s major international brewing operations, and Carlsberg and Tuborg are two of the most widely sold beer brands on a global scale. Carlsberg Breweries was established in 2001 when Carlsberg s and Orkla s beverage activities were merged.

5 Carlsberg Breweries WESTERN WESTERN EUROPE EUROPE EASTERN EASTERN EUROPE EUROPE (ROW) (ROW) ASIA ASIA Carlsberg Danmark Carlsberg Okocim (Pol.) Carlsberg Asia Carlsberg Sweden Sinebrychoff (Finland) PanonskaPivovara(Cro.) Türk Tuborg (Turkey) Malaysia Hong Kong/China 5 Ringnes (Norway) Shumensko, Pirinsko (Bul.) South Korea Carlsberg-Tetley (UK) Hannen Brauerei (Germany) Feldschlösschen (Switzerl.) Carlsberg Italia (Italy) Unicer Bebidas (Portugal) Baltic Beverages Holding Russia Ukraine Baltics Kazakhstan United Romanian (Rom.) Thailand Singapore Laos Nepal Vietnam Sri Lanka Israel Breweries (Israel) Nuuk Imeq (Greenland) Carlsberg Malawi (Malawi) Majority Holding Joint Ventues Minority Holding

6 Strategic Priorities Focus on beer Participate in the consolidation of the beer industry when creating value Achieve market leadership in core markets Concentrate on Western Europe, Eastern Europe and Asia Increase ownership in core breweries Implement clear branding strategy: Carlsberg leading international brand supported by strong regional and national brands 6

7 Achievements in 2002 EBITA growth of 21% in Carlsberg Breweries EBITA margin improvement ROCE up 0.6% to 10.3% in Carlsberg Breweries Carlsberg brand volume grows 6% to 10m hl Focus on cost efficiency and increased market shares in Western Europe BBH strengthening market leader platform in growth market Share buy back of DKK 1bn 7

8 Value Drivers in 2002 in Carlsberg Breweries EBITA: SOURCES OF GROWTH 4000 DKKm Nordic BBH Vena, Svyturys Asia UK Turkey Other 2002

9 Western Europe A strong year for the Nordic area Positive market share development on key brands Margin expansion #1 in Finland 9 Investments Lic. & Export Profit growth in Carlsberg Sweden following cost savings and synergies Positive development in the UK Carlsberg brand growth of 12.7% Notable increase in operating profit

10 Western Europe Feldschlösschen performance in line with business plan Hannen Brauerei now showing modest positive results 10 Investments Lic. & Export Strategy in Western Europe Brand building leading to improved product mix Firm cost control and reduction of working capital

11 Eastern Europe Market share Investments Lic & Export BBH strengthens market position in its three regions Baltika brand among top-selling brands in Europe Carlsberg Okocim (Poland) improved and strong performance in Carlsberg Brand Türk Tuborg unsatisfactory result. but increased market share 11

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13 A Successful Strategy BBH Philosophy To build upon strong local leadership and entrepreneurial drive combined with consistent infusion of local managers with Western business experience and education. Optimal balance between local and global. Acquire majority interest in local breweries Quality improvements Functional support from BBH in all key business areas Brand strategy with focus on mainstream / premium Volume growth through capacity expansions Capex financed by strong internal cash flow 13

14 Consolidation of Operating Structure Baltics The most advanced Pan-Baltic approach in the Baltic FMCG-sector launched in Baltic management with mandatory power, Baltic strategies, assets optimisation, benchmarking Ukraine One-company approach since One national management, one sales & distribution system etc. Russia BBH approach: Gradually creating corporate structures around two natural centers: Baltika Yarpivo 14

15 Asia Operations in Asia organized in 50/50 JV with Chang Beverages Potential for growth; particularly for Carlsberg brand Thailand operations weaker than expected 15 Investments Licence / export Potential markets Major contribution to profit from Malaysia, Hite and Thailand profit guarantee China strategy model is reviewed Growth potential still marginal to Group

16 Our Brands Our Most Valuable Assets Brand philosophy: different brands different roles Strong brand portfolios are necessary for long term market success Strong portfolios combine both strong national brands complemented with strong global brands There is an interdependency between the two types of brands. Consumers want both, but in different situations 16

17 The Carlsberg Brand One of few international premium brands Strongly marketed around the world Sold in around 140 markets In total more than DKK 1bn invested annually in building the Carlsberg brand globally Greater focus on image advertising / media Greater investments in international sponsorships 17

18 Carlsberg Brand Growth Western Europe Eastern Europe Growth % +57% Strong organic growth in UK/Nordic Geographic growth in new markets - Eastern and Central Europe. Potential for further growth 18 Asia -3% Good performance on export markets ROW/Export Total +3% +6% Asia: Good performance in Singapore, Hong Kong and Malaysia. Decrease in Thailand. Relaunch currently being rolled-out

19 Going Forward Carlsberg strategy based on business model approach tailored to specific national/regional market characteristics Improving operational performance Build on premium brands New product development Focus on cash flow Acquisitions when it creates value Talent management program 19

20 Q & A 20