Q2 Shareholder Magazine. August 2013

Q2 Shareholder Magazine August 2013

Q2 August 2013 3 Photo front page: GreenFest Russia The Tuborg brand is closely connected with music and sponsors music events across a large number of Carlsberg s markets. The Tuborg GreenFest is an annual series of rock music events which has Tuborg as its main sponsor. Read more on page 9. DEAR CARLSBERG SHAREHOLDER CONTENTS 03 CEO statement 04 Innovation the legacy and the future 06 A taste of Carlsberg Group innovations 08 Sponsorship it s all about passion 10 A glimpse of Carlsberg Group 13 Financial Statements as at 30 June 2013 17 Key figures and financial ratios 18 Income statement 19 Statement of financial position 20 Overview Jørgen Buhl Rasmussen President & CEO WE DELIVERED SOLID MARKET SHARE IMPROVEMENTS IN EASTERN EUROPE AND ASIA WHILE OUR MARKET SHARE IN WESTERN EUROPE WAS FLAT AS COMPARABLES WERE DIFFICULT DUE TO LAST YEAR S EURO FOOTBALL. Welcome to this edition of News! In the first half year, we grew our earnings despite tough European markets. Asia continued its strong performance, supported by strong growth from our international premium brands. In Russia, we increased our market share in a declining beer market, which continued to be impacted closure of non-permanent outlets and slower economic growth. In Western Europe, our market share remained flat, a solid performance bearing in mind the difficult economic environment and tough comparables with the positive EURO 2012 activities in the previous year. You can read much more about our business results on pages 14-19. We have revised our expectations for the Russian beer market in 2013 from flat to mid-single-digit percentage decline. Nevertheless, due to tight cost control measures, improved cost development in logistics and other supply chain areas, and the start to Q3, we keep the full-year earnings outlook unchanged. The challenging market conditions underpin the importance of our continued efforts to make our business more efficient. The many initiatives in this area, as well as the initial results from the implementation of the integrated supply chain and business standardisation in Sweden, give us confidence that we are on the right track. focused and by improving our ability to commercialise our ideas and knowledge. In this edition of News, we have dedicated four pages to shed more light on how we work with innovation and provide examples of recent innovations in our markets. Please see pages 4-7. The Carlsberg Group has a long tradition for sponsorships and they play an important part in our marketing efforts. We consider sponsorships an efficient and engaging way of building brand awareness and communicating with our consumers. Ultimately, our sponsorships are, of course, about growing our business and driving the long-term sales of our great beer brands. On page 8, we provide a bit more insight into our work with sponsorships. I hope this edition of News will be interesting reading. Cheers, Jørgen Buhl Rasmussen The Carlsberg Group is one of the leading brewery 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 2012, the Carlsberg Group sold 120 million hectolitres of beer, which is about 36 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: 4,200 (incl. Danish circulation). Editorial staff: Anne-Marie Skov (responsible) and Iben Steiness. Layout and production: Liebling A/S. Carlsberg A/S, CVR No. 61056416, Ny Carlsberg Vej 100, DK-1799 Copenhagen V, Tel: +45 33 27 33 00, www.carlsberggroup.com. I believe it is fair to say that the beer industry historically has not been very proactive at innovating. At Carlsberg, though, research, development and innovation have always been part of who we are; and this goes all the way back to our founder, J. C. Jacobsen. In recent years, we have done a lot to become even better at utilising our research, development and innovation capabilities by becoming more

4 NEWS Q2 August 2013 5 Modular 20 revolutionising draught beer INNOVATION THE LEGACY AND THE FUTURE Modular 20 is a unique draught beer system. It delivers improved draught beer quality and is easy to handle, which is an advantage for on-trade customers, such as bars and restaurants. Modular 20 is based on the Group s proprietary break-through DraughtMaster keg technology. This deploys one-way plastic kegs full of fizzy beer rather than the aluminium beer kegs and CO 2 cylinders needed for traditional draught beer. The technology also reduces the environmental impact of draught beer compared to traditional steel kegs due to lower water consumption, lower CO 2 emissions and less waste. The DraughtMaster technology was successfully piloted in Italy in 2011 and is now in use by 60,000 customers in 17 markets. RESEARCH, DEVELOPMENT, AND INNOVATION ARE CORE TO THE CARLSBERG LEGACY AND ARE STILL CONSIDERED VITAL IN DRIVING BEER CATEGORY GROWTH AND BUSINESS RESULTS. BY OFFERING CONSUMERS NEW EXPERI- ENCES, WE ENSURE THAT OUR BRANDS REMAIN RELEVANT AND THAT WE MAINTAIN CONSUMER LOYALTY AND ATTRACT NEW CONSUMERS. Julia Isdale, head of the Carlsberg Group s Innovation team Most people probably wouldn t connect beer with research, development and innovation. But at Carlsberg, these are core to our legacy, which goes all the way back to the brewery s founder, J.C. Jacobsen. He built Carlsberg with a strong focus on research and development, and it was this focus as well as his extraordinary business acumen that lead to him becoming one of the leading brewers in Europe of his time. Today, the Carlsberg Group continues to see research, development and innovation as vital in driving the growth of the beer category in general and to improving business performance. Consequently, innovation is a key priority of the Group s strategy. We want to give consumers new experiences, either by improving the brands they already know and cherish or by offering them something entirely new. This is how we can ensure that our brands remain relevant and how we can capture future growth opportunities. To support this and to drive an ambitious and profitable innovation agenda, our organisational structure integrates the research, development and innovation functions with sales and marketing, with the combined function being headed up by Senior Vice President Khalil Younes. This pooling of capabilities brings the different functions and teams together allowing better opportunities for combining commercial and technological knowledge, insights and developments. Widening the scope of innovation Julia Isdale, head of the Carlsberg Group s Innovation team, explains why it is so important for Carlsberg to continue its focus on innovation: We are currently in a situation where the beer category is challenged beer consumption is declining in most of Europe. What we need to do is to make sure that we have a wide range of new products that can increase the value of the volume sold by the Group. Radler a repeatable concept Radler is a refreshing low-alcohol drink in which beer is mixed with juice. It s very popular in Europe and is known as radler in Germany, shandy in England, and clara in Spain. To date, Carlsberg has launched the radler concept across nine markets. The Lithuanian radler, Utenos Radler Lemon, recently won the best new product award in Lithuania by market research company Nielsen. It was the most successful new Lithuanian beer launch in 2012. She continues, Innovation is the lifeblood of many fast moving consumer goods (FMCG) companies. Even though the beer industry generally tends to be more traditional, it s increasingly important for us to be innovative and bring ideas to the market to maintain consumer loyalty and attract new consumers. Carlsberg s innovation efforts are not only limited to developing the flavours inside the bottles in fact, it s not even limited to beer: We have a holistic approach to innovation in the Carlsberg Group. Innovation means all kinds of new ideas and inventions, be it liquids, packaging, categories or technologies, says Julia Isdale. Three recent examples show the benefits of successful innovation. The new Tuborg bottle, which you can read more about on the following page, is an example of innovation in packaging that revitalised the Tuborg brand and helped boost sales in many markets. Somersby, the cider brand first launched in 2008, became the world s fastest growing international cider brand in 2012 and is an example of category innovation. And an example of innovation in technology is Draught Master Modular 20, a break-through draught system that keeps draught beer fresh for a longer time. Leveraging innovation across brands and markets In recent years, there has been more focus on leveraging the strength of the Group s popular local brands to increase the value of our innovation efforts. The radler concept is a good example of this approach, which involves applying new concepts and ideas to local brands. Julia Isdale explains: The basic concept of radler is mixing low-alcoholic beer with fruit juice to get a beer that is very light, refreshing and easy to drink. We have rolled the radler concept out internationally by launching radler variants of our local brands. In effect, this means that radler is sold across many of our markets, but under a different name and with different packaging and positioning. For example in Croatia, we have utilised the local brand Pan to launch Pan Radler. In Denmark, where Tuborg is a very popular brand, we have launched radler under the name Tuborg Sommer. By using this approach, we can leverage the brands that are strong in each market to get the most value out of our radler innovation. What s next? Innovation is a key component of the Carlsberg Group strategy. Focused efforts within defined innovation platforms supported by research and development are driving a continuous innovation pipeline. But Julia Isdale doesn t want to be too specific: We are very busy and have a lot of ideas and concepts in the pipeline. But since many of our plans are commercially sensitive, it s better not to reveal too much just now. Read more about some of Carlsberg s recent innovations on the following pages and look out for more innovation stories in future editions of NEWS.

6 NEWS Q2 August 2013 7 A TASTE OF CARLSBERG GROUP INNOVATIONS Somersby cider success in cider Carlsberg Citrus line extensions of our flagship brand Garage Hard Lemonade a drink for grown ups SKØLL Tuborg the Viking beer Baltika Razlivnoe taking beer back to basics Zatecky Gus exploring Czech brewing traditions World of Beer Saku Dublin Jacobsen beer and food Tuborg rejuvenationand geographical expansion Grimbergen Crafting beer with passion Like beer, Somersby cider is based on natural ingredients. Somersby innovations are not confined to the liquid itself with an on-going introduction of new flavours as well as an organic version of the popular drink, but expand to packaging and unique and distinctive marketing campaigns and activations. The latest example of the latter is the social media campaign Project Open-minded which was launched in May 2013. The campaign encourages consumers to become more open-minded through humorous Somersby webisodes on YouTube. Somersby is available in 35 markets world-wide and was the fastest growing global cider brand in 2012. When Carlsberg Citrus was recently launched in the UK market, it was the first UK line extension of our flagship brand in many years. Carlsberg Citrus is a refreshing, easy-to-drink beer with a low ABV of 2.8%. It has been brewed specifically to be smoother and less bitter than traditional lagers. The beer aims to recruit and retain consumers who are leaving the beer category in search of fruit-based alcoholic drinks. Made with Persian limes, Carlsberg Citrus has already become a major player in the lower strength beer category a category showing annual growth rates of 50%. Garage Hard Lemonade was first launched in 2012 to address the need for a product that could fill the role of an alternative to beer and meet the demands of an older consumer group. The product falls within the category ready-to-drink (RTD) with a taste that combines the bitter-sweet taste of lemon juice with a touch of real sugar. It has an ABV of 4.6%. The inspiration for developing Garage comes from the USA and Australia where Hard Lemonade is a wellestablished drinks category. The product is positioned as a premium product and achieved strong results in 2012. Garage Hard Lemonade has been launched in five markets. SKØLL Tuborg is a product that mixes beer with vodka and citrus fruit notes with an ABV of 6%. Launched in March 2013 as a Viking beer by French Brasseries Kronenbourg, SKØLL Tuborg leverages the Nordic heritage of Tuborg in a modern and contemporary context. SKØLL Tuborg bears the distinctive Thorkill (Viking helmet) and carries the slogan, Freshly arrived from the North. SKØLL Tuborg is positioned in the premium price segment and has been developed for the French market. Baltika Razlivnoe was developed in response to a growing demand in Russia for back to basics, which means beers that are nonfiltered and non-pasteurized, also defined as RAW beers. The Baltika Razlivnoe brand was launched in 2010 and included three beer types: Baltika Razlivnoe, Baltika Razlivnoe Non-filtered and Baltika Razlivnoe Fresh. All three beers are bottled right after brewing, which means that pasteurisation and filtration are unnecessary. Despite this, the lagers have a shelf life of four months. Consumer demand for RAW beers is not just confined to Russia, however. It is prevalent in many markets, particularly in Eastern Europe. Currently, the concept has been applied to local brands in seven markets. Although developed and brewed in Russia, Zatecky Gus is a light lager based on traditional Czech brewing traditions. Zatecky Gus gives consumers the opportunity to enjoy a traditional Czech beer brewed with the famous Zatec hops. Since its launch in Russia in 2010, line extensions building on the Czech heritage have been introduced, and most recently, packaging renovation was undertaken to enhance the perception of authenticity. Outside Russia, the Zatecky Gus brand portfolio is available in three markets. A growing interest among consumers in beers from other countries has recently led to Carlsberg launching the World of Beer initiative. It is currently available in two markets. The aim is to promote famous beer recipes from around the world by applying them to strong local brands. One of the brands launched as part of this initiative is Saku Dublin, a low-alcoholic, mild beer with a creamy foam head and sweet taste of dark lager brewed by Carlsberg s Estonian brewery. Saku Dublin gets its Irish accent from light caramel, roasted malt and aromatic hops, and the carbon dioxide level of Saku Dublin is lower than average, just as with all classic Irish beers. Jacobsen is the Carlsberg Group s Copenhagen-based super-premium craft beer. Named after founder J.C. Jacobsen, the unique brand is available in seven variants. The Jacobsen beer range is under continuous development with a focus on quality, craftsmanship and appropriate food and Jacobsen beer pairings. In December 2011, the Jacobsen brew master teamed up with Danish chocolatier Peter Beier to break tradition and offer chocolate truffles filled with 20% Jacobsen beer. In the world of beer, there are long-standing traditions for using chocolate as an ingredient in brewing, but doing it the other way around was an innovation opportunity the Jacobsen Brew masters could not pass up. In the spring of 2012, the Tuborg brand underwent a comprehensive rejuvenation, which included a new visual identity featuring an original tilted logo, a new tagline Open for More and a new bottle design. The brand also entered new territories with its first-ever launch in China. The launch of the new identity was supported by a global marketing campaign, which comprised a television commercial, a social media campaign and a music campaign. The rejuvenated Tuborg, including the expansion into China, led to 6% brand volume growth in 2012. Grimbergen is Carlsberg s super-premium Belgian abbey ale with roots dating back to 1128. The modern day Grimbergen beers are strongly inspired by the widespread craft beer craze and appeal to consumers looking for high-quality ales with unique flavour variants. To further support the super-premium positioning of the brand, a new proprietary bottle, livery and a new marketing campaign were launched in 2012. Over the past two years, the Grimbergen brand has become a significant player in the global craft beer segment and is today sold in 30 markets across the world.

8 NEWS Q2 August 2013 9 CARLSBERG S LONG-STANDING INVOLVEMENT WITH FOOTBALL SPONSORSHIP IT S ALL ABOUT PASSION SPONSORED Carlsberg has sponsored all the European Football Championships since 1988, and was most recently Official Partner to UEFA EURO 2012. In February 2013, Carlsberg renewed its partnership with UEFA, which includes the 2016 UEFA European Championships and the European Qualifiers from 2014 to 2017. The Carlsberg brand has a long heritage of supporting football through major international sponsorships of national teams and international tournaments. Starting in the 1970s, Carlsberg was the first commercial sponsor of the Danish national team and national league. Today, the brand has partnerships with the national teams of England, Ireland and Serbia. In club football, Carlsberg has wide ranging partnerships throughout Europe and beyond, including a long-running association with Liverpool FC and Arsenal FC (UK) as well as FC Copenhagen and OB-Odense (Denmark), Hamburger SV (Germany), FC Porto (Portugal), and many more. In early 2013, Carlsberg signed a three-year sponsorship agreement with the English Premier League and a three-year partnership deal with the Chinese Football Association Super League. THE CARLSBERG GROUP HAS A LONG TRADITION FOR SPONSORSHIPS. OUR SPONSORSHIPS SUPPORT EVENTS AND ACTIVITIES THAT CAN BE POSITIVELY ASSOCIATED WITH OUR BRANDS, RANGING FROM LARGE GLOBAL SPON- SORSHIPS SUCH AS THE EUROPEAN FOOTBALL CHAMPIONSHIP TO LOCAL SPONSORSHIPS OF MUSIC EVENTS, SPORTS CLUBS AND THE LIKE. To us, sponsorships are about the passion that connects our brands and our values with the sponsored events and their fans and supporters. They allow us to engage and develop relationships with consumers who share the same passion with us. Some of the Carlsberg Group s major sponsorships include the UEFA European Football Championships, the English Premier League, the Kontinental Hockey League in Russia, the Sochi Winter Olympic Games, Roskilde Festival in Denmark, and the Tuborg GreenFest in Eastern Europe. Supporting business growth There are compelling business reasons that sponsorships play an important and integral part in the Group s marketing activities. Not only do sponsorships fit well with our values, but they are also an effective way of communicating with consumers. Our brand becomes directly visible to more people, which helps to build brand awareness and credibility. But ultimately, sponsorships are about growing our business and driving the longterm sales of our beer brands. Mike Thompson, Marketing Director for Carlsberg, is responsible for sponsorships overall. He explains: Before we commit ourselves to a new sponsorship, we first ask ourselves who our target audience is and what types of activities are most appealing to them. Knowing this helps us to determine which type of sponsorship programme makes the most sense for our brands. It also takes into consideration how our competitors are playing in the field. Sponsorships are a great way to create brand character and associations that generate real passion and emotion from consumers. For example, in the world of football we see that connection between our brands and passion all the time. Billions of fans Football is and has been part of the Carlsberg brand DNA for many years. It began in the 1970s, when Carlsberg was the first commercial sponsor of the Danish national team and national league and instrumental in establishing the country s first professional game. Football is the world s most popular sport with billions of fans and TV viewers all over the globe and Carlsberg has become one of the world s biggest football sponsors. We re involved with national teams and international tournaments; we sponsor famous clubs and major national competitions; and we even sponsor non-league competitions, supporting football at grassroots levels. Our recent announcement to be sponsor for the English Premier League is a great opportunity. It gives us the chance to create consistent and frequent awareness around our brand and its association with football. It s a great way to engage very, very closely with the fans and offer them something that no one else can offer, explains Mike Thompson. TUBORG AND MUSIC SPONSORED Tuborg s brand image reflects its consumers young, fun, international and deeply involved in music. Tuborg s involvement with music has become an integral part of the modern music world with the brand supporting the best music events and festivals in Europe, including among others Roskilde Festival (Denmark), GreenFest in Eastern Europe, Download Festival and Glastonbury (UK) and Serbia s Exit Festival (the largest annual festival in Eastern Europe). Roskilde Festival Roskilde Festival has existed since 1971 and is the largest music festival in Northern Europe, attracting more than 75,000 music fans each year. In 2012, Tuborg and Roskilde Festival signed a five-year agreement sealing the Tuborg brand s sponsorship of the Festival. Tuborg GreenFest Since 2005, the Tuborg brand has sponsored the annual Green- Fest in Eastern Europe, giving local music fans the chance to enjoy and experience international artists such as Red Hot Chili Peppers, Kaiser Chiefs and Metallica. Tuborg GreenFest is an annual series of rock music events, bringing together well-known rock bands for one-day festivals during the summer. GreenFest borrows its name from the main sponsor of the festival, Tuborg Green. SPONSORED BALTIKA AND THE KONTINTENTAL HOCKEY LEAGUE In late 2012, Carlsberg s Russian brewery, Baltika, and the Kontinental Hockey League (KHL) signed a partnership agreement for 1½ seasons. KHL is equivalent to the NFL in the USA with participating teams from Russia, Belarus, Kazakhstan and Latvia. The deal grants Baltika the right to display the KHL Championship logo on its products and to use the title Official beer of the KHL and Official Supplier to the KHL. The sponsorship will help Baltika communicate the company s support of and focus on sports, one of the company s social priorities, to Russian media, government and consumers. BALTIKA THE OFFICIAL SOCHI 2014 BEER SUPPLIER In late 2011, Baltika signed an agreement making the company the Official Beer Supplier of the XXII Olympic Winter Games of 2014 in the City of Sochi in the beer category. The partnership allows Baltika to use its supplier status in marketing communications and on product packaging. Baltika s partnership with the Winter Olympic Games continues the company s tradition for supporting social projects, in particular sporting development.

10 NEWS Q2 August 2013 11 A GLIMPSE OF CARLSBERG GROUP Baltika launches German and Czech line extensions As part of the World of Beer initiative (see page 7), Carlsberg s Russian brewery, Baltika, has launched two new beers on the Russian market Baltika München and Baltika Praha to let the Russian consumer feel the atmosphere of the two famous beer capitals. Baltika München is a light non-filtered wheat beer brewed according to a traditional Bavarian recipe. It is characterised by a thick foam and a pleasant refreshing taste with an aftertaste of banana, pear and clove notes. The packaging is classic German style with Gothic types on the label to support the authentic Weissbier character. Baltika Praha is a Czech lager with a fine malt taste, pleasant hops bitterness and a flowery flavour to suit the taste of classic Czech beer lovers. The label of Baltika Praha conveys the atmosphere of Prague with the city s spiked towers and green parks. Saku introduces Kiss Appledog beer cocktail Carlsberg s Estonian brewery Saku has launched Kiss Appledog, an apple-flavoured beer cocktail with hints of cider and beer and an ABV of 4.5%. Innovative electric trucks deliver beer Carlsberg s Swiss brewery Feldschlösschen has begun using environmentally friendly trucks for daily deliveries in collaboration with the retail group COOP and the truck supplier E-FORCE. The quiet and zero-emission trucks represent a milestone to the sustainable and CO 2 - neutral transportation of goods. As market leader in Switzerland, Feldschlösschen s vision is to be able to make completely CO 2 -neutral deliveries. The trucks will undergo pilot testing until the end of 2013 in order to gain information on necessary improvements, if any, as well as on the potential use of the trucks in other Carlsberg Group companies and within the COOP Group. Saku s Karl Friedrich beer recognised globally Saku s Karl Friedrich beer has been recognised as one of the top five product innovations on the global beer market at the ninth Canadean International Beer Strategy Conference which this year was held in Prague. The brand was launched in Estonia in early 2012 and is brewed in honour of Karl Friedrich Rehbinder, the founder of Saku. It is a pale lager with historical taste, boasting the delicious flavour of hops and the brew master s pure spirit. It has an ABV of 5%. Aldaris the most sustainable company in Latvia Carlsberg s Latvian brewery, Aldaris, has been awarded Platinum in the annual Latvian CSR & Sustainability Index. The Index measures the economic, social and environmental performance of a company. In order for a company to achieve Platinum, it must have integrated Corporate Social Responsibility fully into its business processes, be highly transparent and committed to its stakeholders, and have improved its operating performance in all areas. Platinum is the highest ranking possible within the CSR and Sustainability Index. This year, 72 Latvian companies were rated and the average performance of the companies was 66.4%. Aldaris performance was above 90%. It is the second year in a row that Aldaris receives the highest ranking which makes it the most sustainable company in Latvia. Kiss Appledog is aimed at consumers who consider cider a bit too sweet and beer slightly on the bitter side. The distinctive packaging underpins the uniqueness of the beverage. It is not similar to any other beverage in Saku s product portfolio or in the Estonian market for that matter. In the UK, on the other hand, mixing draft beer and cider is quite common in pubs and bars. Carlsberg Danmark launches new Tuborg variants Carlsberg Group brands win prestigious awards Carlsberg Danmark has launched Tuborg Sommer (Tuborg Summer) and Tuborg Ultra Grøn (Tuborg Ultra Green) targeting different consumer groups. The target group of Tuborg Sommer is the broadest of the two as it includes most consumers. Tuborg Sommer is a mix of beer and lemonade and a completely new beer to hit the Danish market. It has a very refreshing taste and is a perfect choice for summer events, barbecues or an ice-cold welcome drink. Tuborg Sommer has an ABV of 2.3%. Tuborg Ultra Grøn is aimed at young adult consumers who like to warm up with preparties and pre-celebrations. Tuborg Ultra Grøn is easy to drink and without any bitterness and comes in a 33 cl sleek can. It has an ABV of 6.5%. Over 20,000 people joined Carlsberg Polska s environmental campaign During early summer, Carlsberg Polska took part in the 4th annual recycling initiative, ECOaction which took place in 14 Polish cities as part of the Day without Littering initiative. Carlsberg Polska joined with Coca- Cola, HBC Polska, and Tesco Polska to organise ECOaction. In return for every 10 beverage containers which people handed in, they received a spring conifer seedling or 100 green Clubcard points. The packaging collection spots were visited by more than 20,000 people who handed in a total of 22 tonnes of glass, plastic bottles and cans. In exchange for the used packaging materials, they were given a total of 14,000 conifer seedlings and 270,000 green ClubCard points. Huda Gold launched in Vietnam Hue Brewery Ltd., Carlsberg s fully-owned brewery in central Vietnam, launched Huda Gold on 19 June 2013 at a festive ceremony at the Phu Bai brewery. Huda Gold is brewed and fermented from Houblon crystal hops and high-quality barley in order to create the perfect balance between flavour aromas, and bitterness. It has an ABV of 4.7%. The development of Huda Gold was initiated based upon consumers request for a mid-premium segment beer which harmoniously pairs up with central Vietnamese food. This year, several local brands in the Carlsberg Group s beer portfolio have received Europe s most prestigious culinary award, the itqi Superior Taste Award 2013. The itqi (the International Taste & Quality Institute) is an independent organisation dedicated to testing and promoting superior tasting food and drink from around the world. The Superior Taste Award is Europe s most prestigious chef and sommelier award and is often dubbed the Oscar of the food industry. It is a unique international recognition based on blind taste judging by chefs and sommeliers who are opinion leaders and experts in taste. Three stars is the highest possible rating awarded to products receiving a score of 90% or above. From Lithuania, the Baltijos beer officially entered the ranks of Europe s elite beverages this year by winning the Crystal Taste Award. The Crystal Taste Award is granted to products which have been awarded three stars three years in a row. Gorkha beer from Nepal and Alivaria Zolotoe from Belarus were also awarded three stars. Pan Zlatni from Croatia, Alivaria Extra from Belarus, and Baltas and Old Port Ale from Lithuania were each awarded two stars defining them as remarkable products with blind-taste scores between 80% and 90%.

12 NEWS Q2 August 2013 13 FINANCIAL STATEMENT AS AT 30 JUNE 2013 EARNINGS GROWTH SUSTAINED DESPITE TOUGH EUROPEAN MARKETS Unless otherwise stated, comments refer to half-year performance. Group financial highlights Group organic beer volumes were flat (Q2: -2%) while reported beer volumes grew by 2% to 60.1m hl. Growing volumes in Asia and Eastern Europe offset the volume decline in Western Europe. Other beverages grew organically by 3% (Q2: 0%). Net revenue grew by 3% to DKK 32,918m as a result of 2% organic growth (total beverage volume of +1% and +1% price/mix), -1% from currencies and a net acquisition impact of +2%. The negative currency impact was mainly due to weaker currencies in Malawi and Russia while the acquisition impact mainly related to the Nordic Getränke distribution company in Germany. Organic net revenue growth in Q2 was in line with the first six months despite a weaker volume development. This was driven by an improved price/mix in Q2 of +3% mainly due to an improved price/ mix in Russia as expected. In line with expectations, cost of sales per hl grew organically by approximately 1%. As a result of the positive price/ mix, gross profit per hl grew organically by approximately 4%. Total gross profit grew organically by 3% with an unchanged gross margin of 48.5%. Operating expenses grew organically by approximately 2% (Q2: +2%). Marketing investments were lower than last year due to different phasing because of the Russian marketing restrictions and EURO 2012. However, the lower marketing investments were more than offset by BSP1-related costs and slightly higher sales and logistic expenses. Consequently, Group operating profit was DKK 4,096m with 4% organic growth (Q2: +1%). The growth was supported by continued strong growth in Asia and a strong margin improvement in Eastern Europe. Both regions delivered double-digit operating profit growth, more than offsetting slightly lower profits in Western Europe. In total, BSP1- related costs were approximately DKK 190m for the first six months. Adjusted net profit (adjusted for post-tax impact of special items) grew 5% to DKK 2,247m versus DKK 2,142m last year (Q2: -1%). Reported net profit was DKK 2,136m (2012: DKK 3,279m). Last year s net profit in Q2 was positively impacted by the disposal of the Copenhagen brewery site. Free operating cash flow declined to DKK 653m (2012: DKK 1,114m). The decline is mainly due to slightly higher operational investments and significantly higher receivables in Eastern Europe at the end of June due to higher than normal inventories at distributors in Russia as consumer off-take in Q2 was lower than expected. The efforts to reduce average trade working capital continued and average trade working capital to net revenue improved to 0.7% (MAT) end of Q2 2013 vs 1.6% at the end of Q2 2012. Free cash flow was DKK -85m versus DKK 2,617m last year. The main difference is last year s proceeds from the disposal of the Copenhagen brewery site. Group operational highlights We gained market share in Asia and Eastern Europe. This was achieved through a combination of a further investment in and roll-out of our international premium brands, strong performance of our local power brands, a high level of innovations and continued local deployment and application of our sales and marketing tools. Our Western European market share was flat despite tough comparables last year when EURO 2012 gave us an up-lift in market shares. The Carlsberg brand declined 10% in its premium markets due to the tough comparisons with last year s positive performance related to the EURO 2012 activations where the brand grew 13%. However, the brand continued its strong performance in Asia, particularly in China and India. During the second quarter, we rolled out the innovative music engagement programme Where s the Party in 18 markets and renewed our long-standing partnership with Liverpool FC. The Tuborg brand grew 12% driven by strong performance in Asia, not least in China and India, The rejuvenation programme continued with key initiatives being the launch of Tuborg Booster in India and the Tuborg 3G bottle in the UK. CARLSBERG GROUP Somersby continued to deliver strong results with 85% year-on-year volume growth. Major drivers behind the growth were the launch in the UK as well as the ongoing positive performance in Poland following last year s launch. The BSP1 project was implemented in Sweden in April. The implementation was well executed without business disruptions and Sweden is operational with the new system. We are now entering the final preparations for implementation of BSP1 in Norway and the UK. Structural changes In the first six months of 2013, the Group took several steps to further strengthen the company s growth profile. We announced the entrance into Myanmar through a strategic partnership agreement. We announced our intention to make a partial take-over offer of up to 30.29% of the shares in Chongqing Brewery Company Co. Ltd. DKK million We increased our shareholdings in the Qinghai and Lanzhou joint ventures to 50% and increased our shareholding in Lao Brewery by 10% to 61%. Unchanged 2013 earnings expectations despite challenging marketss The Group s earnings expectations for 2013 are unchanged: Operating profit before special items of around DKK 10bn. Adjusted net profit 1 to increase by a mid-single-digit percentage. Based on the Russian beer market dynamics in Q2, we have adjusted our expectations to this year s beer market growth in Russia from our earlier expectation of a flat market to now a mid-single-digit percentage decline. It has taken longer than anticipated for consumers to adapt to the changed retail landscape caused by the closure of nonpermanent outlets. Furthermore, growth in the Russian economy and consumer sentiment has slowed down. Q2 2012 Organic Acq., net FX 2013 Reported Beer (million hl) 36.3-2% 1% 36.0-1% Other beverages (million hl) 5.6 0% 1% 5.6 1% Net revenue 19,336 2% 2% -2% 19,640 2% Operating profit 3,471 1% 0% -2% 3,435-1% Operating margin (%) 18.0 17.5-50bp H1 Beer (million hl) 59.2 0% 2% 60.1 2% Other beverages (million hl) 9.4 3% 1% 9.7 4% Net revenue 32,111 2% 2% -1% 32,918 3% Operating profit 4,045 4% -1% -2% 4,096 1% Operating margin (%) 12.6 12.4-20bp Due to tight cost control measures, improved cost development in logistics and other supply chain areas, and the start of Q3, we keep earnings outlook unchanged. 1 Adjusted for special items after tax.

14 NEWS Q2 August 2013 15 WESTERN EUROPE DKK million EASTERN EUROPE DKK million Q2 2012 Organic Acq., net FX 2013 Reported Q2 2012 Organic Acq., net FX 2013 Reported Beer (million hl) 14.8-6% 0% 13.9-6% Beer (million hl) 14.1 1% 0% 14.2 1% Other beverages (million hl) 3.9 0% 0% 4.0 0% Other beverages (million hl) 0.9-7% 0% 0.8-7% Net revenue 10,667-1% 3% -1% 10,764 1% Net revenue 6,266 3% 0% -3% 6,245 0% Operating profit 1,799-4% 1% 0% 1,737-3% Operating profit 1,509 10% 0% -3% 1,608 7% Operating margin (%) 16.9 16.1-80bp Operating margin (%) 24.1 25.8 170bp H1 Beer (million hl) 24.7-5% 0% 23.5-5% Other beverages (million hl) 6.9 2% 1% 7.1 3% Net revenue 18,191-1% 3% 0% 18,531 2% Operating profit 2,276-5% 0% 0% 2,163-5% Operating margin (%) 12.5 11.7-80bp H1 Beer (million hl) 21.3 3% 0% 21.9 3% Other beverages (million hl) 1.1-1% 0% 1.0-1% Net revenue 9,217 2% 0% -3% 9,147-1% Operating profit 1,528 14% 0% -3% 1,691 11% Operating margin (%) 16.6 18.5 190bp The beer markets in Western European declined by an estimated 3-4% (estimated 4-5% decline in Q2) impacted by the continued challenging macro and consumer environment; the EURO event in 2012; and poor weather in Q2 in some of our larger markets. Overall, our market share was flat for the region, although we grew market share in Sweden, Norway, Finland, Poland, Portugal and Greece. Commercial activities remained at a high level. In addition to the ongoing roll-out of our international premium brands into new markets, there were a number of new product launches and roll-out of innovations during the period. A few examples are the introduction of Carlsberg Citrus and Somersby in the UK, Skøll by Tuborg in France, and the further geographical expansion of Radler products, Garage Hard Lemonade and the DraughtMaster technology. Beer volumes declined organically by 5% (Q2: -6%). Excluding the Q1 destocking in France, beer volumes declined by an estimated 4%. Beer volumes were flat or grew in markets such as Finland, Norway, Poland, Italy and Greece. The volume of other beverages was flat. The Polish market declined slightly but we continued to gain market share. Our volumes were flat while price/mix improved by approximately 3%. Our value market share improved strongly underpinned by a strong performance by the Kasztelan, Okocim, Harnas and Somersby brands. The French market declined by an estimated 7% impacted by the almost 15% price increase at the beginning of the year (implemented following the 160% excise tax increase), and poor weather, especially in the latter part of Q2. Our volumes (including the destocking impact) declined by almost 19% (-9% adjusted for the destocking impact). Our total market share declined as an improvement in on-trade was off-set by a decline in off-trade. The mainstream brand Kronenbourg continues to be the main reason for the decline. The UK market declined by approximately 4%. We continued to strengthen our market share in the on-trade while our off-trade market share declined due to the year-on-year impact from last year s strong EURO 2012 performance in Q2. Somersby and Carlsberg Citrus were launched nationally and delivered good initial results. Volumes in the Nordics, excluding Denmark, were flat. Profits developed favourably driven by positive price/mix and continued efficiency improvements. Regional net revenue declined organically by 1% to DKK 18,531m (Q2: -1%). We achieved a positive price/mix in the majority of our Western European markets, and the negative volume impact was almost mitigated by the favourable price/mix of +2% (Q2: +3%) as we have implemented price increases across the region. Operating profit was DKK 2,163m, corresponding to a 5% organic decline (Q2: -3%), impacted by the French destocking, the BSP1 costs and the weather. The results benefitted from lower marketing investments due to last year s EURO 2012 activations. Adjusted for the French destocking impact and BSP1 costs, operating profit would have marginally improved. Operating profit margin declined by 80bp (Q2: -80bp) to 11.7% (Q2: 16.1%). For the first six months, the Russian beer market declined by an estimated 7%, mainly as a result of the disruptions from outlet closures; a slow-down in economic growth and consumer sentiment; as well as tough comparisons with a strong H1 2012 which was supported by the preelection macroeconomic stimulus. Some of the beer volume previously sold from the non-permanent outlets has been picked up by other retail outlets (hypermarkets/supermarkets, minimarkets and traditional stores) and on-trade. However, the speed of the transition from non-permanent outlets to other outlet types has been slower than anticipated and for 2013, not sufficient to offset the lost volume from non-permanent outlets. As Russia additionally has experienced a slow-down in the economic growth and consumer sentiment, the Group now expects the Russian market to decline mid-single-digit this year despite easier comparisons in the second half of the year. Our Russian volume market share continued to improve and reached 39.2% in Q2, corresponding to a 130bp improvement versus Q2 last year and an 80bp improvement versus Q1 (source: Nielsen Retail Audit, Urban & Rural Russia). Our value market share showed similar positive dynamics. The market share improvement was broadly based in both modern and traditional trade, in most regions and segments, and driven by brands such as Baltika Cooler, Zatecky Gus, Zhigulevskoe and Holsten whereas our local premium brand Baltika 7 was negatively impacted by outlet closures. The Ukrainian market declined by an estimated 3-4%. The market was, on a comparable basis, particularly weak in the month of June, mainly as a result of last year s EURO 2012. Our market share was slightly down but we saw good performance of the recently introduced Baltika Razlivnoe as well as Slavutich. The Group s regional beer volumes grew organically by 3% (Q2: +1%) to 21.9m hl. Our Russian shipments grew by 3%. At the end of Q2, inventory levels at distributors in Russia were higher than usual as consumer off-take in the important Q2 was lower than expected. Several commercial activities took place across the region. In Russia, several line extensions of Baltika, such as Baltika Praha and Baltika Munich were launched. In addition, the sponsorships of Sochi Olympic Games and the Russian National Hockey League are being activated. The rejuvenated Tuborg was launched in more markets in the region. Organic net revenue grew by 2% (Q2: +3%). Reported net revenue declined by 1% to DKK 9,147m (Q2: flat) due to negative currency impact. Net revenue per hl dynamics improved during the first half of the year. After a high single-digit decline in price/mix in Q1, the price/mix grew by approximately 3% in Q2, bringing the average for the first six months to -1%. The improvement in Q2 was driven by price increases in Russia in March, May and June. Operating profit grew organically by 14% (Q2: +10%) to DKK 1,691m and operating profit margin improved by 190bp (Q2: +170bp) to 18.5%. The improvement was driven by volume growth; slightly lower cost of goods sold; efficiency improvements; and lower sales and marketing expenses due to different phasing versus last year.

16 NEWS Q2 August 2013 17 ASIA Our beer volumes grew organically by 7% (Q2: +2%). Including acquisitions, beer volumes grew by 12% (Q2: +7%) to 14.7m hl. Laos, Cambodia and India did particularly well. Other beverages grew organically by 10%, mainly due to the soft drink business in Laos. The acquisition impact derived from the increased ownership in the Chongqing Jianiang Brewery joint venture. Our international premium brands grew ahead of the overall regional volume growth. The Carlsberg brand grew approximately 5%, mainly driven by an impressive performance in India, with Carlsberg Elephant and in China with Carlsberg Light. The Tuborg brand grew almost 50% in the region as a result of last year s launch in China, where it has become the fastest growing international premium brand. Tuborg continued its strong growth in India where it has become the largest international beer brand. The roll-out of Kronenbourg 1664 and Somersby continued with promising results. In Indochina, our volumes grew by approximately 15% with a particularly strong performance in Laos and Cambodia, driven by market growth and strong activation of our local power brands Beerlao and Angkor. Volumes in Vietnam grew by mid-single digit percentages, supported by strong performance of the Huda brand in central Vietnam. Our Chinese volumes grew by +13% including acquisitions and 5% organically in a market growing by approximately 4%. The volume growth was driven by DKK million a combination of growth of Carlsberg, strong Tuborg growth and growth of local premium brands. Our Q2 volumes were impacted by slightly lower market growth. Malaysia/Singapore performed well despite Singapore being impacted by increasing imports and the Malaysian on-trade sector being affected by air pollution in parts of the country. A large number of commercial activities related to the Carlsberg, Kronenbourg 1664 and Somersby brands took place in the two markets. Organic net revenue grew 17% (Q2: +14%) with reported revenue growth of 11%, impacted negatively by currency impact from Malawi. Price/mix was +6%. The favourable development was due to price increases and market share gains in the growing premium category and was achieved in spite of a negative country mix. Operating profit grew organically by 20% (Q2: +21%) with reported growth of 14%. The operating profit margin strengthened by 50bp to 19.1%. Markets such as China, Indochina and Nepal were the main drivers behind the improvement. The earnings improvement was achieved despite higher sales and marketing investments, in particular allocated to the expansion in China of the Tuborg brand. Q2 2012 Organic Acq., net FX 2013 Reported Beer (million hl) 7.4 2% 5% 7.9 7% Other beverages (million hl) 0.7 11% 3% 0.8 14% Net revenue 2,379 14% 1% -5% 2,608 10% Operating profit 431 21% 0% -6% 493 15% Operating margin (%) 18.1 18.9 80bp H1 Beer (million hl) 13.2 7% 5% 14.7 12% Other beverages (million hl) 1.4 10% 2% 1.6 12% Net revenue 4,640 17% 0% -6% 5,163 11% Operating profit 864 20% -2% -4% 986 14% Operating margin (%) 18.6 19.1 50bp KEY FIGURES AND FINANCIAL RATIOS Q2 Q2 H1 H1 DKK million 2013 2012 2013 2012 2012 Total sales volumes (million hl) Beer 41.5 43.3 69.8 70.0 140.9 Other beverages 6.1 6.3 10.6 10.8 22.0 Pro rata volumes (million hl) Beer 36.0 36.3 60.1 59.2 120.4 Other beverages 5.6 5.6 9.7 9.4 19.1 Income statement Net revenue 19,640 19,336 32,918 32,111 66,468 Operating profit before special items 3,435 3,471 4,096 4,045 9,793 Special items, net -93 1,445-153 1,397 85 Financial items, net -414-411 -774-878 -1,772 Profit before tax 2,928 4,505 3,169 4,564 8,106 Corporation tax -732-974 -792-989 -1,861 Consolidated profit 2,196 3,531 2,377 3,575 6,245 Attributable to: Non-controlling interests 122 176 241 296 638 Shareholders in Carlsberg A/S 2,074 3,355 2,136 3,279 5,607 Shareholders in Carlsberg A/S (adjusted) 1 2,143 2,174 2,247 2,142 5,504 Statement of financial position Total assets - - 153,307 154,374 153,965 Invested capital - - 119,570 120,390 121,467 Interest-bearing debt, net - - 33,965 31,154 32,480 Equity, shareholders in Carlsberg A/S - - 67,870 68,825 70,261 Statement of cash flows Cash flow from operating activities 4,014 4,405 3,250 3,283 9,871 Cash flow from investing activities -1,495 607-3,335-666 -3,974 Free cash flow 2,519 5,012-85 2,617 5,897 Financial ratios Operating margin % 17.5 17.7 12.4 12.6 14.6 Return on average invested capital (ROIC) % - - 8.0 7.6 8.0 Equity ratio % - - 44.3 44.6 45.6 Debt/equity ratio (financial gearing) x - - 0.48 0.42 0.44 Interest cover x - - 5.29 4.61 5.53 Stock market ratios Earnings per share (EPS) DKK 13.6 22.0 14.0 21.5 36.8 Earnings per share (EPS) (adjusted) 1 DKK 14.0 14.3 14.7 14.0 36.1 Cash flow from operating activities per share (CFPS) DKK 26.3 28.9 21.3 21.5 64.6 Free cash flow per share (FCFPS) DKK 16.5 32.9-0.6 17.2 38.6 Share price (B-shares) DKK - - 513 485 554 Number of shares (period-end) 1,000 - - 152,545 152,554 152,555 Number of shares (average, excl. Treasury shares) 1,000 152,550 152,544 152,550 152,541 152,543 1 Adjusted for special items net of tax.

18 NEWS Q1 Maj 2013 19 INCOME STATEMENT STATEMENT OF FINANCIAL POSITION Q2 Q2 H1 H1 DKK million 2013 2012 2013 2012 2012 Net revenue 19,640 19,336 32,918 32,111 66,468 Cost of sales -9,795-9,664-16,960-16,525-33,831 Gross profit 9,845 9,672 15,958 15,586 32,637 Sales and distribution expenses -5,301-5,351-9,616-9,636-18,912 Administrative expenses -1,180-1,012-2,330-2,074-4,185 Other operating income, net 34 124 30 114 145 Share of profit after tax, associates 37 38 54 55 108 Operating profit before special items 3,435 3,471 4,096 4,045 9,793 Special items, net -93 1,445-153 1,397 85 Financial income 503 114 812 391 900 Financial expenses -917-525 -1,586-1,269-2,672 Profit before tax 2,928 4,505 3,169 4,564 8,106 Corporation tax -732-974 -792-989 -1,861 Consolidated profit 2,196 3,531 2,377 3,575 6,245 Attributable to: Non-controlling interests 122 176 241 296 638 Shareholders in Carlsberg A/S 2,074 3,355 2,136 3,279 5,607 Earnings per share 13.6 22.0 14.0 21.5 36.8 Earnings per share, diluted 13.6 22.0 14.0 21.5 36.7 DKK million 30 June 2013 30 June 2012 31 Dec. 2012 Assets: Intangible assets 88,637 89,726 91,216 Property, plant and equipment 31,378 32,117 31,991 Financial assets 9,926 8,628 9,623 Total non-current assets 129,941 130,471 132,830 Inventories and trade receivables 15,755 14,793 12,369 Other receivables etc. 4,306 4,529 2,979 Cash and cash equivalents 3,279 4,514 5,760 Total current assets 23,340 23,836 21,108 Assets held for sale 26 67 27 Total assets 153,307 154,374 153,965 Equity and liabilities: Equity, shareholders in Carlsberg A/S 67,870 68,825 70,261 Non-controlling interests 3,253 5,834 3,389 Total equity 71,123 74,659 73,650 Borrowings 29,227 33,184 36,706 Deferred tax, retirement benefit obligations etc. 15,368 15,137 16,074 Total non-current liabilities 44,595 48,321 52,780 Borrowings 9,821 4,425 3,352 Trade payables 13,927 13,188 11,862 Deposits on returnable bottles and crates 1,412 1,476 1,381 Other current liabilities 12,412 12,252 10,922 Total current liabilities 37,572 31,341 27,517 Liabilities associated with assets held for sale 17 53 18 Total equity and liabilities 153,307 154,374 153,965

OVERVIEW SHARE PRICE 2013 (DKK per share, Carlsberg B) 620 FINANCIAL CALENDAR 2013 13 November Interim results for Q3 580 540 500 460 2014 19 February Financial statement as at 31 December 2013 7 May Interim results for Q1 2014 420 January February March April May June July August 20 August Interim results for Q2 2014 10 November Interim results for Q3 2014 PEOPLE NEWS Roy Baggatini leaves Carlsberg Roy Bagattini, SVP Asia Region and member of the Executive Committee since 2009, has left Carlsberg to join Levi Strauss & Company. During the recruitment process for a new SVP Asia, Jørgen Buhl Rasmussen, President & CEO, will act as SVP Asia region. Søren Ravn New CEO Greater China Søren Ravn has been appointed CEO Greater China, responsible for China, Hong Kong, Macau and Taiwan. Søren comes from a position as CEO Malaysia and Singapore. Søren has been with Carlsberg for 15 years, of which the past approximately five years have been in management positions in Asia. Henrik Andersen New CEO Carlsberg Malaysia Henrik Andersen has been appointed CEO Carlsberg Malaysia, responsible for Malaysia and Singapore and Carlsberg s business in Sri Lanka. Henrik comes from a position as CEO Indochina. Henrik joined Carlsberg in 1992 and has been part of Carlsberg s Asian business for more than a decade, Søren Lauridsen New CEO South Asia Søren Lauridsen has been appointed CEO of South Asia, responsible for India, Nepal, Thailand and Myanmar. Søren comes from a position as CEO India, Nepal, and Sri Lanka. Søren joined Carlsberg in 2005 and has held various managerial positions in Asia since 2007. Tony Hicks New CEO Indochina Tony Hicks has been appointed CEO of Carlsberg Indochina, responsible for Vietnam, Laos and Cambodia. Tony joins Carlsberg from Molson Coors Brewing Company where he has held a wide range of senior sales, strategy and general management positions. Having worked in Asia and the USA for the past nine years, Tony has extensive international experience. Daniel Sjögren New Managing Director Myanmar Daniel Sjögren has been appointed Managing Director of Carlsberg s operations in Myanmar. Daniel comes from a position as Managing Director of Carlsberg Hong Kong. Daniel began his career in Carlsberg UK in 2002. In 2005-2010, he held various commercial management positions at Carlsberg headquarters.