2015 carlsberg ir corporate presentation

2015 IR Presentation

Content

2

Group overview & history

Our Stand, strategy & KPIs

Our brands

Financial performance

2015 Outlook

Our regions • Western Europe • Eastern Europe • Asia

Financial policy & leverage

CSR

Share data

Find out more …

Disclaimer

The Carlsberg Group

3

No. 1 in Eastern Europe

140 beer brands

122.8 m.hl. of beer sold in 2014

No. 4 largest international brewer

No. 2 in Western Europe

+11% EBIT growth (CAGR) from 2005 to 2014

+11% EPS growth (CAGR) from 2005 to 2014

Group ownership structure

4

Carlsberg Foundation

Free float

Carlsberg A/S Listed on Nasdaq OMX

Copenhagen

Carlsberg Breweries A/S

Operating companies

30% of capital 75% of votes

70% of capital 25% of votes

100%

4

Founded in 1847 on a passion for beer, science and art

5

1847 JC Jacobsen founds the Carlsberg Brewery on a hill outside of Copenhagen

1882 JC’s son Carl Jacobsen builds his own brewery next to his father’s and calls it ”New Carlsberg”.

1868 Carlsberg has international ambitions from the beginning and exports its first barrel of beer to Scotland in 1868

1904 The famous Carlsberg logo is designed by architect Thorvald Bindesbøll. This logo is still used today.

JC Jacobsen has great ambitions for his brewery and to make sure his beer is brewed to the highest scientific standards he establishes the Carlsberg Laboratory.

Carl Jacobsen has a great passion for art and architecture and creates many spectacular buildings for his brewery. One of these is the impressive Elephant Gate welcoming visitors to his brewery.

The transformation of Carlsberg

6

2000 2010

● Establishment of Carlsberg Breweries

● Structure ● Operations

● Acquisition of 100% of Carlsberg Breweries

● Excellence programs

● S&N acquisition & integration ● Accelerate efficiencies and

execute synergies ● Drive revenue growth

● The FMCG journey ● Value management ● Brand portfolio activation and scoping ● Challenge driven and focused innovation process ● Business process standardisation ● Integrated supply chain ● Centralisation and integration ● Increased CSR focus ● Consolidation and expansion of Asian footprint

2005 2015 …

Three regions

Western Europe

% of total beer volume

% of EBIT

Eastern Europe Asia

2014

2014

Group

7

41 31 28

51 28 21

Content

8



Our brands


2015 Outlook



CSR

Share data

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Disclaimer

The Carlsberg Group Stand

Thirst for Great

Great people. Great brands. Great moments.

Founded on the motto, Semper Ardens – Always Burning – we never settle, but always thirst for the better.

We are stronger together because we share best practices, ideas, and successes. We brand as many, but stand as one.

With the courage to dare, to try, to take risks, we constantly raise the bar. We don’t stop at brewing great beer. We brew a greater future – for our consumers and customers, our communities and our people.

This passion will continue to burn and forever keep us thirsty.

9

The Carlsberg Group business model

• Our business model is designed to support sustainable, long-term value growth of our business

• It supports our ambition to deliver sustainable value growth and em-braces our core product, our ways of working and our market presence

10

11

Winning Behaviours – guiding the way we work

Together we are stronger We respect and welcome differences in culture, people and brands, at the same time recognizing that working closely together and actively sharing best practices across functions, countries and regions is what it takes to grow and win.

We want to win We always strive for winning solutions and are willing to take bold steps to reach our goals. Whether big or small in the market place, we behave as entrepreneurs/underdogs – fast, proactive and action oriented in decision making as well as in execution.

Our consumers and customers are at the heart of every decision we make We put ourselves in the shoes of our consumers and customers and have a detailed in-sight into their needs and preferences. We base our strategies and plans on this insight and continuously evaluate the ways we work to improve their experience of our brands, our services and our people.

We are engaged with society We are socially and environmentally responsible and believe it makes business sense to be so. We make a positive contribution to the societies in which we operate and the communities in which we live. We listen to and engage with our stakeholders and always strive for responsible use of natural resources.

We are each empowered to make a difference We take ownership of challenges and problems, individually and in teams, and have the autonomy to deliver outstanding results. We do not let fear of failure overcome the desire to succeed and learn from our mistakes. We work in an environment where good ideas and passion to deliver are recognized and rewarded.

The Carlsberg Group strategy wheel

12 WINNING BEHAVIOURS

We want to win Together we are stronger

We are each empowered to make a difference

Our consumers and customers are a the heart of every decision we make

We are engaged with society

Measuring our performance

13

• We measure our financial performance and progress towards our strategic priorities using a number of KPIs – KPIs are integrated in

incentive schemes throughout the organisation to align the performance of the Group

• Selected financial KPIs are shown here

Strategic focus area: Consumers, brands & innovation

At Carlsberg, the consumer is at the heart of every decision we make. We always think about consumers in the context of needs, occasions, brands and innovations, and we are on a journey to continuously sharpen up our approach to these areas. We are fast at identifying local best practices and scaling them across relevant markets.

14

Three priorities: • Iconise Carlsberg • A winning portfolio of international

and local power brands • Consumer-relevant innovation

Strategic focus area: Customers

The Carlsberg Group fully recognises the critical importance of superior execution at the point of sale. Growing the beer category in both volume and value terms can only be achieved in close collaboration with our customers, not least in times of regulatory restrictions in several of our markets.

15

Two priorities: • Win with our customers • Excel at point-of-sale execution

Strategic focus area: People

In order for us to achieve our goals and execute faster and better than our competitors, we count on our skilled employees having a high level of engagement, drive and ambition, and we provide them with the necessary tools for personal and professional development.

16

Three priorities: • High performance culture • Develop, recruit and retain best-in-

class people • Empowerment and engagement

Strategic focus area: Effectiveness & efficiency

Producing products of consistently high quality at the right price is critical for creating a competitive advantage within the beer industry. We therefore engage in value-adding activities to get the most out of our resources. Over the past decade, we have come a long way on this journey, but the bar is set high and we still have a lot more to do.

17

Three priorities: • An efficient consumer- and

customer-focused organisation • Maximise return on investments • The Carlsberg way of working

Strategic focus area: Society & reputation

The long-term success of the Carlsberg Group is dependent on what we do, what we say and how we behave when we interact with our stakeholders. We recognise the importance of actively building a strong, sustainable corporate brand position for the Carlsberg Group while ensuring that our people are well prepared to manage any potential crises and issues in a sensitive, responsible manner.

18

Three priorities: • Raise our reputation as a responsible

global brewer • Integrate CSR across the value chain • Enhance the image of the beer

category

1,2

Content

19



Our brands


2015 Outlook



CSR

Share data

Find out more …

Disclaimer

20

A Group of more than 500 different brands

Carlsberg brand portfolio

21

Flag

ship

In

tern

atio

nal

Prem

ium

Lo

cal

Prem

ium

Beer category

Adjacent categories

Carlsberg

International Premium Brands

Local “Power Brands”

Note: Selection from Carlsberg Group portfolio of 500 brands

http://www.google.co.in/imgres?imgurl=http://www.russiablog.org/BaltikaLogoBlue.gif&imgrefurl=http://www.russiablog.org/2007/04/morgan_stanley_investing_in_ru.php&usg=__FEXFMKfUjnQkkolOnIVVrTxbQ2I=&h=222&w=329&sz=40&hl=en&start=7&itbs=1&tbnid=hUdClH-p93JOCM:&tbnh=80&tbnw=119&prev=/images?q=Baltika+beer&hl=en&sa=G&gbv=2&tbs=isch:1

22 22

Beer is core – but we are looking at adjacent categories

CIDERS BREWED BEVERAGES

WATER SOFT DRINKS

OTHERS ENERGY DRINKS

of total volume 2014

15% of total volume 2015

Leveraging production and distribution capacities

85%

BEER

Innovation – a key component of Carlsberg Group strategy

• Innovation is a key priority and important to grow the beer category

• Integration of research, development and commercial innovation capabilities drive an ambitious innovation agenda

• Simple operating model leveraging the full organisation to deliver a winning innovation pipeline to capture future growth opportunities

• A healthy innovation mix incorporating best of local and global

23

Drive competitive advantage

Best of Global

Best of Local

Best of Regional

Content

24



Our brands


2015 Outlook



CSR

Share data

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Disclaimer

Net revenue and operating profit

3,518

4,046

5,262

7,978

9,390

10,249 9,816 9,793 9,844

9,230

0

2,000

4,000

6,000

8,000

10,000

12,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

DKK bn Operating profit

25

38.0 41.1

44.8

59.9 59.4 60.1

63.6 66.5 66.6

64.5

0

10

20

30

40

50

60

70

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

DKK bn Net revenue

Operating profit and EBITDA margins

0%

5%

10%

15%

20%

25%

30%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

EBIT margin

Carlsberg Group Western Europe

Eastern Europe Asia

26

0%

5%

10%

15%

20%

25%

30%

35%

40%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

EBITDA margin

Carlsberg Group Western Europe

Eastern Europe Asia

Reported and adjusted EPS

11.7

19.9

24.3

22.1 23.6

35.1 33.8

36.8 35.9

28.9

0

5

10

15

20

25

30

35

40

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

DKK Reported EPS

27

27.3

35.6 34.1

36.1 37.8

36.0

0

5

10

15

20

25

30

35

40

2009 2010 2011 2012 2013 2014

DKK Adjusted EPS

Average trade working capital and free cash flow

-6%

-4%

-2%

0%

2%

4%

6%

2009 2010 2011 2012 2013 2014

ATWC/net revenue

2.1

1.4

0.1

2.6

10.7

7.4

4.2

4.8

2.8

1.9

0

2

4

6

8

10

12

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

DKK bn Free operating cash flow

28

Dividend per share and pay-out ratio

4.0

4.8 4.8

3.5 3.5

5.0

5.5

6.0

8.0

9.0

0%

5%

10%

15%

20%

25%

30%

35%

0

1

2

3

4

5

6

7

8

9

10

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Pay-out ratio DKK

29

Content

30



Our brands


2015 Outlook



CSR

Share data

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Disclaimer

2015 earnings expectations and assumptions

• Western European beer markets flattish • Eastern European markets declining in volume, but growing

in value • Asian beer market volume growth • Declining cost of goods sold per hl • Slightly growing A&P to revenue

• Negative impact of the weaker Russian rouble on operating profit

• C. DKK 0.9bn translation effect at YTD avg. EUR/RUB c. 75 • Sensitivity: +/-10% EUR/RUB vs. YTD average impacts

operating profit by c. DKK +/- 200m • All-in cost of debt at around 4% • 28% tax rate • Capital expenditures at around DKK 4bn (index ~90 to depr.) • Net debt/EBITDA planned to be less than 2.5x by end-2015

31

Earnings expectations

Operating profit Mid- to high-single-digit organic growth

Content

32



Our brands


2015 Outlook



CSR

Share data

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Disclaimer

Western Europe

FINLAND Sinebrychoff • No. 1 • Market share: 51% • Breweries: 1

DENMARK Carlsberg Danmark • No. 1 • Market share: 54% • Breweries: 1

GERMANY (Northern) Carlsberg Deutschland • No. 1 • Market share: 16% • Breweries: 2

SWEDEN Carlsberg Sverige • No. 1 • Market share: 33% • Breweries: 1

NORWAY Ringnes • No. 1 • Market share: 54% • Breweries: 2

BALTIC STATES Saku Aldaris Svyturys-Utenos Alus • No. 1-2 • Market share: 28-41% • Breweries: 3

POLAND Carlsberg Polska • No. 3 • Market share: 19% • Breweries: 3

SWITZERLAND Feldschlösschen • No. 1 • Market share: 42% • Breweries: 1

ITALY Carlsberg Italia • No. 4 • Market share: 7% • Breweries: 1

PORTUGAL Unicer • No. 1 • Market share: 48% • Breweries: 1

UK Carlsberg UK • No. 4 • Market share: 14% • Breweries: 1

SOUTH EAST EUROPE Carlsberg Serbia Carlsberg Croatia Carlsberg Bulgaria Carlsberg Greece • No. 2-3 • Market share: 15-26% • Breweries: 5

FRANCE Kronenbourg • No. 1 • Market share: 29% • Breweries: 1

33

Western Europe – Region characteristics

• Mature markets with strong tradition of beer consumption in many markets

• Well-established retail structures – Shift from on-trade to off-trade

• Flat to slightly declining markets. However, in 2014 beer category dynamics improved slightly driven by – Innovations – Specialty/craft beers – Improved category perception

• Market value growth

• Front-end initiatives include – Value management – In-store execution – Driving international and local premium brands

• Efficiency initiatives include – On-going simplification – Standardisation – Centralisation throughout the value chain

34

Western Europe – 2014 headlines

• Improving market share for fourth year in a row – Estimated +20bp market share growth

• Invest to drive profitable volume and value growth – Growth in innovations/speciality/craft – Roll-out and embedding sales tools – Focus on pockets of growth

• Implementation of the business standardisation and supply chain integration project (BSP11) roll-out in additional four countries

• +60bp operating profit margin growth to 14.5%

35 1 See next slide

Supply chain integration and business standardisation (BSP1)

• Implementation of BSP1 in Western Europe during 2013 - 2016

• Centralising management of procurement, production, planning and logisitcs across Western Europe enabled by – Standardisation of processes and data,

supported by a common SAP platform – Full transparency across markets

Improved performance management across markets and breweries

• BSP1 is one of the most important projects in recent years, being a key enabler for the transformation of the operating model in Western Europe

• Markets on BSP1 by October 2014: Sweden, Norway, UK, Finland, Poland and Switzerland

36

Western Europe – key facts

• 49m hl beer

• 14,400 employees

• 23 breweries

• Operating margin target: – Improve the margin by an average of

50bp or more per year for at least the next five years (from 13.9% in 2012)

37

DKK bn 2013 2014 Organic growth

Beer volumes (m hl) 49.0 50.0 +2%

Other beverages (m hl) 14.9 15.8 +6%

Total volumes (m hl) 63.9 65.8 +3%

Net revenue 37.4 37.8 +1%

EBITDA 6.9 7.1 +4%

EBIT 5.2 5.5 +7%

Poland

UK

France

South East Europe

Germany Nordic countries

Others

Pro-rata beer volumes

Western Europe – profitability and returns

0%

3%

6%

9%

12%

15%

18%

0

1

2

3

4

5

6

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

DKK bn EBIT and EBIT margin (rhs)

38

0%

3%

6%

9%

12%

15%

18%

21%

0

5

10

15

20

25

30

35

40

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

DKK bn Invested capital and ROIC (rhs)

Note: The calculation of invested capital was changed in 2014 (2013 numbers restated), after which goodwill and trademarks related to the acquisition in 2004 of Orkla’s 40% in Carlsberg Breweries have been allocated to the relevant beverage segments (previously in non-bev. segment)

Denmark & Sweden

Carlsberg Danmark • Market position: No. 1 • Market share: 51% • 1 brewery • Key brands: Tuborg, Carlsberg, Somersby

• Per capita consumption: 80 litres • On-trade share of total market, approx.: 27%

Carlsberg Sverige • Market position: No. 1 • Market share: 33% • 1 brewery • Key brands: Pripps, Falcon, Carlsberg, Somersby

• Per capita consumption: 60litres • On-trade share of total market, approx.: 21%

39

Norway & Finland

Ringnes (Norway) • Market position: No. 1 • Market share: 54% • 2 breweries • Key brands: Ringnes, Tuborg, Carlsberg

• Per capita consumption: 47 litres • On-trade share of total market, approx.: 20% Sinebrychoff (Finland) • Market position: No. 1 • Market share: 51% • 1 brewery • Key brands: Karhu, Koff, Nikolai, Carlsberg


40

Germany & Poland

Carlsberg Polska • Market position: No. 3 • Market share: 19% • 3 breweries • Key brands: Okocim, Harnas, Carlsberg, Somersby


Carlsberg Deutschland • Market position: No. 1 (Northern Germany) • Market share: 16% (Northern Germany) • 2 breweries • Key brands: Holsten, Astra, Dückstein, Carlsberg


41

UK & France

Carlsberg UK • Market position: No. 4 • Market share: 14% • 1 brewery • Key brands: Carlsberg, Tuborg, Somersby, Tetley

• Per capita consumption: 70 litres • On-trade share of total market, approx.: 51% Kronenbourg (France) • Market position: No. 1 • Market share: 29% • 1 brewery • Key brands: 1664, Kronenbourg, Grimbergen, Carlsberg,

Kanterbrau

• Per capita consumption: 29 litres • On-trade share of total market: 22%

42

Switzerland & Italy

Feldschlösschen (Switzerland) • Market position: No. 1 • Market share: 42% • 1 breweries • Key brands: Feldschlösschen, Cardinal, Carlsberg

• Per capita consumption: 57 litres • On-trade share of total market: 42% Carlsberg Italia • Market position: No. 4 • Market share: 7% • 1 breweries • Key brands: Birra Poretti, Bock, Carlsberg


43

Baltics & South East Europe

Baltics (Estonia, Latvia, Lithuania)

• Market position: No. 1-2 • Market share: 28-41% • 3 breweries • Key brands: Aldaris, Svyturys, Utenos, Saku, Carlsberg

• Per capita consumption: 72-96 litres • On-trade share of total market, approx.: 4-8% South East Europe (Bulgaria, Croatia, Serbia, Greece) • Market position: No. 2-3 • Market share: 15-26% • 5 breweries • Key brands: Pan, Pirinsko, Shumensko, Lav, Mythos,

Carlsberg, Tuborg, Somersby

• Per capita consumption: 37-71 litres • On-trade share of total market, approx.: 17-56%

44

Portugal

Unicer (Portugal) • Market position: No. 1 • Market share: 48% • 1 breweries • Ownership share: 44% • Key brands: Super Bock, Carlsberg


45

Content

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Eastern Europe

RUSSIA Baltika • No. 1 • Market share: 38% • Breweries: 8

BELARUS Olivaria • No. 1 • Market share: 32% • Breweries: 1

AZERBAIJAN Baltika-Baku • No. 1 • Market share: 72% • Breweries: 1

UKRAINE Carlsberg Ukraine • No. 2 • Market share: 28% • Breweries: 3

KAZAKHSTAN Derbes • No. 2 • Market share: 21% • Breweries: 1

47

Eastern Europe – Region characteristics

• Russia - the main market in the region

• Regional beer market value growth

• Beer market decline in recent years driven by – Challenged macroeconomy – Unavoidable, significant price increases due to

excise tax and COGS increases – Changed regulation in Russia

• Retail landscape in developing phase – Modern trade growing – Traditional trade still dominant

• Main focus – Continue to strength our Russian business – Secure value growth through

– value management – driving our international and local premium

brands – innovation – superior commercial execution

48

Eastern Europe – 2014 headlines

• Positive market share development in most markets

• Russian beer market decline of ~7%

• Strong price/mix of +9% driven by – Price increases – Small mix improvement – Launch of slightly smaller pack sizes in Russia

• 12% organic operating profit decline; 28% reported operating profit decline – Strong price/mix and efficiency improvements

more than offset by lower volumes, higher COGS, higher logistic costs and write-off on obsolete stocks

– Significant negative currency impact

49

Eastern Europe – key facts

• 38m hl of beer


• 14 breweries

50


Beer volumes (m hl) 42.4 37.8 -11%


Total volumes (m hl) 44.1 39.5 -10%

Net revenue 17.7 14.1 -3%

EBITDA 5.6 4.2 -7%

EBIT 4.1 3.0 -12%

Russia

Ukraine

Others


Eastern Europe – profitability and returns

0%

5%

10%

15%

20%

25%

30%

0

1

2

3

4

5

6

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


51

0%

5%

10%

15%

20%

25%

30%

0

12

24

36

48

60

72

2007 2008 2009 2010 2011 2012 2013 2014


Note: The calculation of invested capital was changed in 2014 (2013 numbers restated), after which goodwill and trademarks related to the acquisition in 2004 of Orkla’s 40% in Carlsberg Breweries have been allocated to the relevant beverage segments (previously in non-bev. segment)

Russia

Baltika • Market position: No. 1 • Market share: 38% • 8 breweries • Key brands: Baltika 3, Baltika 7, Bolshaya Kruzhka, Baltika

Cooler, Zatecky Gus, Tuborg, Carlsberg, Holsten


52

31%

33%

35%

37%

39%

41%

Russian volume market share

Russian brand portfolio

53

Super premium Tuborg

Premium Baltika 7

Mainstream Baltika 3

Lower mainstream Arsenalnoe

Discount Bolshaya Kruzhka

Non-beer brands

Largest brand

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http://images3.wikia.nocookie.net/__cb57088/logopedia/images/2/24/Holsten_logo.svg

http://dialog/gallery/foto/DocLib/EVE_b.jpg

http://dialog/gallery/foto/DocLib/000185.jpg

Russian beer market dynamics

54

0

17

34

51

68

85

102

119

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

m hl

Russian beer market

0

90

180

270

360

450

540

630

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

RUB bn

Russian beer market, consumer value

Ukraine

Carlsberg Ukraine • Market position: No. 2 • Market share: 28% • 3 breweries • Key brands: Lvivske, Slavutich, Carlsberg, Baltika


55

Belarus & Kazakhstan

Olivaria (Belarus) • Market position: No. 1 • Market share: 32% • 1 brewery • Key brands: Alivaria, Carlsberg, Holsten

• Per capita consumption: 51 litres • On-trade share of total market: 4% Carlsberg Kazakhstan • Market position: No. 2 • Market share: 21% • 1 brewery • Key brands: Derbes, Irbis, Carlsberg, Tuborg • Per capita consumption: 27 litres • On-trade share of total market: 11%

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58

Asia

CHINA (Western) • No. 1 • Market share: ~55% • Breweries: 44

MALAYSIA Carlsberg Brewery Malaysia Berhad • No. 2 • Market share: 44% • Breweries: 1

VIETNAM SEAB Hue Brewery Habeco Vung Tau • No. 2 • Market share: 33% • Breweries1: 6

NEPAL Gorkha Brewery • No. 1 • Market share: 72% • Breweries: 1

CAMBODIA Cambrew • No. 1 • Market share: 56% • Breweries: 1

LAOS Lao Brewery Co. • No. 1 • Market share: 98% • Breweries: 2

SINGAPORE Carlsberg Singapore • No. 2 • Market share: 20%

HONG KONG Carlsberg Hong Kong Ltd • No. 1 • Market share: 26%

INDIA South Asia Breweries • No. 3 • Market share: 11% • Breweries: 6

MALAWI Carlsberg Malawi • No. 1 • Breweries: 1

SRI LANKA Lion Brewery Ceylon • No. 1 • Breweries: 1

1Excl. Habeco

Asia – Region characteristics

• Portfolio of mature and growing beer markets

• Beer market growth driven by – Expanding populations – Urbanisation – Rising disposable income levels – Growing economies – Relatively low per capita consumption

• Varying competitive intensity contested by local as well as major international brewers

• International presence mostly through joint ventures with local partners or equity stakes

59

Asia – 2014 headlines

• Market volume growth in most markets

• All markets growing in value

• Market share gains in most markets – Doubling of the Tuborg brand – +12% Carlsberg brand growth in premium

markets – Rejuvenation of local power brands – Strengthening of sales capabilities

• Strong price/mix of +5%

• Increasing focus on efficiency improvements

• Margin decline due to consolidation effect from Chongqing Brewery Company

60

Asia – key facts

• 35m hl of beer


• 63 breweries

61


Beer volumes (m hl) 28.3 35.0 +0%


Total volumes (m hl) 31.4 38.5 +1%

Net revenue 9.1 12.5 +11%

EBITDA 2.5 3.2 +13%

EBIT 1.9 2.2 +8%

China

Indochina

India

Malaysia Others


Asia – profitability and returns

0%

5%

10%

15%

20%

25%

0.0

0.4

0.8

1.2

1.6

2.0

2.4

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


62

0%

3%

6%

9%

12%

15%

0

4

8

12

16

20

24

28

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


China and Hong Kong

China (8 brewery groups) • Market position, western China: No. 1 (national: no. 5) • Market share, western China: ~55% (national: 5%) • 44 breweries through fully or partly owned businesses • Ownership share: 50-100% • Key brands: Shancheng, Chongqing, Wusu, Dali, Huang He,

Xixia, Carlsberg, Tuborg

• Per capita consumption: 32 litres • On-trade share of total market: 46% Carlsberg Hong Kong • Market position: No. 1 • Market share: 26% • 0 breweries • Ownership share: 100% • Key brands: Carlsberg


63

China

64

Wusu Xinjiang Beer Group Ownership share 65%

Ningxia Group Ownership share 70%

Lanzhou Group Ownership share 50%

Chongqing Brewery Company Ownership share 60%

Qinghai Huang He Brewery Ownership share 50%

Lhasa Brewery Ownership share 50%

Yunnan Group Ownership share 100%

Guangdong Ownership share 99%

Chongqing Beer Group AM Ownership share 100%

Malaysia and Singapore

Carlsberg Malaysia • Market position: No. 2 • Market share: 44% • 1 brewery • Ownership share: 51% • Key brands: Carlsberg

• Per capita consumption: 6 litres • On-trade share of total market: 77% Carlsberg Singapore • Market position: No. 2 • Market share: 20% • 0 brewery • Ownership share: 51% • Key brands: Carlsberg


65

Vietnam and Laos

Vietnam (4 brewery groups) • Market position: No. 2 • Market share: 33% • 6 breweries (excl. Habeco) • Ownership share: 17-100% • Key brands: Huda, Halida, Festival, Thang Long, Carlsberg

• Per capita consumption: 33 litres • On-trade share of total market: 49% Lao Brewery (Laos) • Market position: No. 1 • Market share: 98% • 2 breweries • Ownership share: 61% • Key brands: Beer Lao, Carlsberg


66

Cambodia

Cambrew (Cambodia) • Market position: No. 1 • Market share: 56% • 1 brewery • Ownership share: 50% • Key brands: Angkor Beer, Carlsberg


67

India and Nepal

Carlsberg India • Market position: No. 3 (no. 2 in seven states) • Market share: 11% • 6 breweries • Ownership share: 100% • Key brands: Tuborg, Carlsberg, Palone

• Per capita consumption: 2 litres • On-trade share of total market: 16% Gorkha Brewery (Nepal) • Market position: No. 1 • Market share: 72% • 1 brewery • Ownership share: 90% • Key brands: Gorkha, Tuborg


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Financial policy

• Committed to maintaining investment grade credit rating

• Centralised funding and risk management at the level of Carlsberg Breweries A/S

• Diversified sources of funding and smooth maturity profile

• Ample capital resources available at all times

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Commitment to Investment Grade

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• Rated by Fitch and Moody’s since January 2006

• Long Term Issuer Rating: BBB

• Outlook: Stable

• Date: 21-02-2011

“Fitch Ratings expects that Carlsberg Breweries A/S’s credit profile will remain commensurate with a ‘BBB’ rating, despite macroeconomic and geopolitical issues in eastern Europe, which in 2013 accounted for 40% of Group EBITDA excluding central costs. Fitch believes the increasing importance of Asian markets and the resilience of western Europe, which in 2013 accounted for 51% of group EBITDA, will help to reduce Carlsberg’s reliance on Russia over the medium to long term.” (30-10-2014)

• Rating: Baa2

• Outlook: Negative

• Date: 09-01-2015

“Carlsberg's Baa2 long-term ratings are supported by the company's (1) scale as the fourth world's largest brewers, with leading positions in some of its key European and Asian markets, including Russia; (2) increasing geographic diversification; and (3) solid cash flow supporting net debt reduction, albeit at a slower pace than we previously expected, given the persistently challenging trading conditions in the European and Russian beer markets.” (09-01-2015)

Diversified sources of funding

• Conservative funding policy

– Main funding sources are bonds and long-term bank facilities

– In May 2014, Carlsberg issued a EUR 1bn EMTN bond with a coupon of 2.5% and a tenor of 10 years, replacing a maturing bond with a coupon of 6%

– Carlsberg maintains a EUR 5bn EMTN programme (EUR 1.1bn un-utilised)

– DKK 10.5bn of a EUR 2,510m credit facility was un-utilised at year-end. The facility expires February 2020 with an option to extend for 1 year

– No financial covenants

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71%

20%

4% 4% 1%

Funding sources

BondsNon-current bank borrowingMortgagesCurrent bank borrowingsOther, current and non-current

Ample capital resources

0

5

10

15

20

25

1-2 years 2-3 years 3-4 years 4-5 years > 5 years

Time to maturity, non-current borrowings

0

12

24

36

48

60

2015 2016 2017 2018 2019->

Committed credit facilities and net financial debt, end Dec. 2014

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• Interest rate risk – 69% of net financial debt carries a fixed interest rate – Average duration is 3.8 years – EUR and DKK accounts for 78% of net financial debt

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Focus of CSR strategy - Environment, Packaging and Responsible Drinking

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Carlsberg Group Strategy

Responsible Drinking

CSR COMMUNICATION

CSR MANAGEMENT

Policy implementation

Local implementation

Reporting

Focus areas Enablers

Support

Environmental efficiency

(Water, Energy, CO2) Sustainable packaging

Environmental efficiency

29.2 29.1 28.0 29.4

0

10

20

30

40

2011 2012 2013 2014

kWh/hl Energy efficiency

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8.8 7.3 7.1 7.3

0

3

6

9

12

2011 2012 2013 2014

CO2 kg/hl CO2 Emissions

3.3 3.3 3.3 3.4

0

1

2

3

4

2011 2012 2013 2014

hl/hl Water use

2016 targets:

• 5-10% reduction in relative energy consumption over 3 years1

• 5-10% reduction in relative water consumption over 3 years1

• 5-10% reduction in relative CO2 emissions over 3 years1

1 Allowing for adjustments of 2014 baseline when relevant.

Four approaches to sustainable packaging

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REDUCE weight or change to packaging with lower environmental impact.

Increase REUSE of packaging materials, with the main focus on glass bottles.

Encourage consumers to RECYCLE packaging and increase the amount of recycled content in new packaging.

RETHINK packaging and waste

• Launched at the Economic Forum in Davos in 2014

• A collaboration platform where Carlsberg and partners work together to create a zero-waste, beneficial society by using the Cradle-to-Cradle® perspective when developing and marketing new products

• Products will be analysed from a Cradle-to-Cradle® perspective, and optimised for re-entry as valuable resources into biological or technical cycles

• The initiative supports the Circular Economy by improving quality and purity of packaging

The Carlsberg Circular Community will drive collaboration throughout the value chain

78 Cradle to Cradle® Design Framework, created by Professor Michael Braungart and Mr. William McDonough with their companies EPEA Internationale Umweltforschung GmbH and MBDC, LLC.

Thirst for beer …

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Goes well with food

Is based on natural ingredients and offers health benefits when consumed in moderation

Makes a significant contribution to society

BEER…

Carlsberg encourages responsible consumption to prevent misuse of our products

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DRINK DRIVING

UNDER-AGE DRINKING

BINGE DRINKING

MODERATE CONSUMPTION

Promoting responsible drinking on many different levels • Across the Group: Marketing Communication Policy

• Nationally: through local brewers associations

• Regionally: through Brewers of Europe

• Globally: through Global Brewers Initiative (GBI) in collaboration with other major brewers

GROWING RESPONSIBLY KEY AREAS

Partnering with stakeholders

• Signatory of the UN Global Compact – The UN Global Compact promotes organisational integration

of environmental, social and governance issues.

• Signatory of the CEO Water Mandate – Taking part in the CEO water mandate helps us identify new

ways to use our water resources more efficiently.

• Caring for Climate platform – The Caring for Climate initiative provides us with a

framework to advance solutions for climate change.

• Partnering with UNIDO – In partnership with UNIDO, Carlsberg Group and Baltika

Breweries have committed to invest RUB 1bn in environmental projects over the next five years.

• CEO commitment to reduce harmful use of alcohol – Collective commitment among 13 CEOs of wine, beer and

spirits producers to 10 targeted actions in support of WHO strategy to reduce harmful use of alcohol.

• BIER – Beverage Industry Environmental Roundtable (BIER) consists

of leading beverage companies working together on a variety of environmental stewardship initiatives.

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http://ceowatermandate.org/

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Carlsberg shares and ownership

Carlsberg A Carlsberg B

No. of shares 33,699,252 118,857,554

Currency DKK DKK

Stock market NASDAQ OMX Copenhagen

NASDAQ OMX Copenhagen

ISIN DK001018167-6 DK001018175-9

Symbol CARL A CARL B

Reuters CARLa.CO CARLb.CO

Bloomberg CARLA DC CARLB DC

Votes per share 20 2

Par value 20 20

Company Ownership

The Carlsberg Foundation 30% of capital 75% of votes

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Geography Ownership

Denmark 13%

USA 39%

UK 14%

Other 34%

Key share data Major shareholders

Geographical break-down of shareholders, free float1

1 Excluding The Carlsberg Foundation

Carlsberg ADR program (Sponsored Level 1)

Symbol CABGY

CUSIP 142795202

Exchange OTC

Ratio 5 ADRs: 1 ORD

Depositary BNY Mellon

Effective Date 26 February 2010

U.S. ISIN US1427952023

Underlying SEDOL 4169219

Underlying ISIN DK0010181759

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Find out more …

• … about our heritage …

• … about our corporate governance ...

• … about our strategy …

• … about our brands …

• … about our csr …

• … about the Carlsberg share and ADRs …

• … download our 2014 annual report …

• … download quarterly financial data in excel …

• … about the Carlsberg Foundation …

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http://www.carlsberggroup.com/Company/heritage/Pages/default.aspx

http://www.carlsberggroup.com/Company/Governance/Pages/CorporateGovernance.aspx

http://www.carlsberggroup.com/Company/Strategy/Pages/Facts.aspx

http://www.carlsberggroup.com/brands/Pages/default.aspx

http://www.carlsberggroup.com/csr/Pages/default.aspx

http://www.carlsberggroup.com/investor/shareholders/Pages/ADRProgram.aspx

http://www.carlsberggroup.com/investor/downloadcentre/Pages/CarlsbergASAnnualReport2014.aspx

http://www.carlsberggroup.com/investor/financials/Pages/QuarterlyEarnings.aspx

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Disclaimer

Forward-looking statements This presentation contains forward-looking statements, including statements about the Group’s sales, revenues, earnings, spending, margins, cash flow, inventory, products, actions, plans, strategies, objectives and guidance with respect to the Group's future operating results. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "intend", "plan", "project", "will be", "will continue", "will result", "could", "may", "might", or any variations of such words or other words with similar meanings. Any such statements are subject to risks and uncertainties that could cause the Group's actual results to differ materially from the results discussed in such forward-looking statements. Prospective information is based on management’s then current expectations or forecasts. Such information is subject to the risk that such expectations or forecasts, or the assumptions underlying such expectations or forecasts, may change. The Group assumes no obligation to update any such forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements.

Some important risk factors that could cause the Group's actual results to differ materially from those expressed in its forward-looking statements include, but are not limited to: economic and political uncertainty (including interest rates and exchange rates), financial and regulatory developments, demand for the Group's products, increasing industry consolidation, competition from other breweries, the availability and pricing of raw materials and packaging materials, cost of energy, production and distribution related issues, information technology failures, breach or unexpected termination of contracts, price reductions resulting from market driven price reductions, market acceptance of new products, changes in consumer preferences, launches of rival products, stipulation of market value in the opening balance sheet of acquired entities, litigation, environmental issues and other unforeseen factors. New risk factors can arise, and it may not be possible for management to predict all such risk factors, nor to assess the impact of all such risk factors on the Group's business or the extent to which any individual risk factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Accordingly, forward-looking statements should not be relied on as a prediction of actual results.

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2015 carlsberg ir corporate presentation

Documents

carlsberg brewery

carlsberg laboratory

new carlsberg

transformation of carlsberg

great beer

carlsberg group business

famous carlsberg logo

beer brands