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A N N U

A L R E

P O R T

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L A U N

C H O F C

O R P O

R A T E

V I S U

A L I D E N

T I T Y

Carlsberg Malaysia launched a new CorporateVisual Identity (CVI) by incorporating the six basic

design elements developed by the Carlsberg Group forall its Carlsberg companies.

The newlyunveiled Carlsberg Malaysias CVI portrays a new

look with international presence, local signicance and uniesboth Carlsberg Brewery Malaysia Berhad and its wholly-owned

subsidiary Carlsberg Marketing Sdn Bhd.

With its characteristics of being contemporary, dynamic and international,the new CVI of Carlsberg Malaysia perfectly denotes the momentum of the

vibrant organization moving forward. The Management and staff of CarlsbergMalaysia are proud of the successful implementation of the new CVI.

C H E E

R S T O

A N E

W L O O K

!

Carlsberg Sans LightCarlsberg Sans BoldCarlsberg Sans BLACK

Carlsberg Malaysia is a Dynamic provider ofbeer, stout and beverage brands, Bringing peopletogether and Adding to the enjoyment of life.

vision

mission

6 core valuesRegardless of the occasion and place, ourBrands shall be the consumers preferred choice.

We are Ambitious when setting targets.We are Innovative in nding new ways.We are Responsible in our actions.We are Honest in our approach.Our Heritage is built on a tradition of high quality.We are a Good Corporate Citizen in our deeds.

Incorporated in December 1969, Carlsberg Brewery Malaysia Berhad (CarlsbergMalaysia) is currently listed on the Main Board of Bursa Malaysia Securities Berhad

under the consumer products sector. It began brewing Carlsberg beer locally in 1972.Since then, Carlsberg has become part of Malaysian beer drinkers lifestyle and is the

undisputabl e brand lea der in the Malaysian beer market.

Carlsberg Malaysia brews a broad portfolio of beers, stout and beverage brands. The

products include Carlsberg beer, Skol beer, Tuborg, Carlsberg Special Brew, Danish Royal Stout,Royal Stout Ginseng, Jolly Shandy Lemon and Lychee and Nutrimalt. The Group also imports and

distributes leading brands such as Jacobsen Bramley Wit specialty beer, Corona Extra, Tetleys EnglishAle and Beamish Stout.

At the forefront of innovation and quality, Carlsberg Malaysia has always led the market with dynamic product

launches and consumer campaigns. On the corporate scene, Carlsberg Malaysia is acknowledged for its dedicationand commitment to Corporate Social Responsibility initiatives.

DO YOU KNOW THAT...?1. Carlsberg beer was first imported into Malaysia in 1903.2. The Malaysian brewery was set up in 1969 and Malaysians celebrated the first locally brewed Carlsberg beer

in 1972. 3. In 1998, Carlsberg Malaysia won the Jacobsen Golden Words Award in recognition of its consistent high

quality standards, commitment to improvement and successful sales development.4. In 2003, Carlsberg Malaysia received KLSE Corporate Merit Award for Corporate Governance for the 2 nd

consecutive year.5. In 2007, Carlsberg beer received Malaysias Platinum Most Trusted Brand Award for the 8 th consecutive year in

a Readers Digest consumer survey.6. In 2007, Skol beer won Superior Taste Award by the International Taste and Quality Institute (iTiQ) Brussels in

2007, and had previously won two international awards at the Australian International Beer Awards (AIBA).7. In 2006, Danish Royal Stout was awarded the Gold medal award at the Monde Selection Awards in Belgium.

A G L A

N C E

A T C A R L

S B E R

G

M A

L A Y S

I A


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P 2 / CARLSBERG BREWERY MALAYSIA BERHAD(9210-K)

CORPORATE INFORMATION

DIRECTORS

Dato Lim Say ChongJ.S.M., D.M.P.N.Chairman

Tan Sri Dat k Asmat bin Kamal dinP.S.M., P.J.N., J.S.M., S.M.J., K.M.N.

Jesper Bjoern Madsen

Soren Holm JensenManaging Director

Dato Chin Voon LoongD.S.P.N.

Janne Petteri J vonen

M.R. Gopala Krishnan C.R.K Pillai

COMPANY SECRETARY

Dato Chin Voon LoongD.S.P.N.

AuDITORS

KPMG

SOLICITORS

Shearn Delamore & Co.

PRINCIPAL BANKERS

P blic Bank BerhadWisma Lim Foo Yong,86, Jalan Raja Chulan,50200 Kuala Lumpur.

Maybank BerhadMenara Maybank,

100, Jalan Tun Perak,50050 Kuala Lumpur.

ABN AMRO Bank BerhadLevel 1, Menara Maxis,Kuala Lumpur City Centre,50088 Kuala Lumpur.

REGISTERED OffICE ANDPRINCIPAL PLACE Of BuSINESS

No. 55, Persiaran Selangor, Section 15,40200 Shah Alam, Selangor Darul Ehsan.Tel : +603 5522 6688Fax : +603 5519 1931Email : [email protected] : www.carlsberg.com.my

SHARE REGISTRAR

Symphony Share Registrars Sdn BhdLevel 26, Menara Multi-Purpose,Capital Square,

No 8, Jalan Munshi Abdullah,50100 Kuala Lumpur.Tel : +603 2721 2222Fax : +603 2721 2530 / 2531

STOCK EXCHANGE LISTING

Main Board o B rsa Malaysia Sec rities Berhad


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ANNuAL REPORT 2007 / P 3

DIRECTORS PROFILE

Dato Lim Say Chong, aged 67, a Malaysian, wasappointed to the Board on 21 May 2003.

Dato Lim graduated from the University of Malaya withan honours degree majoring in Economics and obtained

a Masters in Business Administration from the Universityof British Columbia, Canada. He also attended an AdvancedManagement Programme at the Harvard Business School,Boston. Dato Lim worked with the Imperial Chemical Industries(ICI) Plcs Group of Companies in Malaysia and abroad for30 years, during which time he sat on the Boards of severalcompanies within the Group. He later became the ManagingDirector of the ICI (Malaysia) Group for 5 years. Dato Lim was theGroup Managing Director of Chemical Company of Malaysia Bhd

from 1989 to 2004. Dato Lim also served in various associations,including as President of the Malaysian International Chamberof Commerce & Industry (MICCI). He was also a Member ofthe National Human Resource Development Council, Board ofDirectors of the Malaysian Industrial Development Authority(MIDA), Board of Trustees of the Aged European Fund, CouncilMember of the Federation of Malaysian Manufacturers (FMM)and Board of ASEAN Chamber of Commerce & Industry (ACCI).

Presently, Dato Lim is a Director of Standard Chartered BankMalaysia Berhad, Opus Group Berhad (formerly known as OpusInternational Group PLC) and Mulpha International Berhad. Heis also a trustee of the Ti-Ratana Welfare Society and Chairmanof the Coalition of Service Industries Malaysia.

DATO LIM SAY CHONG

J.S.M., D.M.P.N.Independent Non-Executive Chairman

Member of Audit CommitteeMember of Remuneration Committee

Member of Nomination Committee


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DIRECTORS PROfILE

Tan Sri Datuk Asmat bin Kamaludin, aged 64,a Malaysian, was appointed to the Board on 1

February 2001.

Tan Sri graduated with a Bachelor of Economics (Honours)degree from the University of Malaya and later attended

a special programme on the European Economic Communityin Amsterdam. Tan Sri served in the Ministry of InternationalTrade and Industry (MITI) for 35 years, and retired as theSecretary General, a position he held for 9 years. Dealing withboth domestic and international trade sectors at MITI, he alsoworked with several international bodies such as ASEAN, WTO

and APEC, representing Malaysia in relevant negotiations andagreements. He was also actively involved in several nationalorganisations such as Johor Corporation, the Small and MediumScale Industries and MATRADE.

Tan Sri is presently serving on the Boards of MalaysianPacific Industries Bhd, UMW Holdings Berhad, Lion IndustriesCorporation Berhad, YTL Cement Berhad, PanasonicManufacturing Malaysia Berhad, Symphony House Berhad,SCOMI Group Berhad, Compugates Holdings Berhad,Permodalan Nasional Berhad, Trans-Asia Shipping CorporationBerhad and ABN Amro Bank Behad.

TAN SRI DATuK ASMATBIN KAMALuDIN

P.S.M., P.J.N., J.S.M., S.M.J., K.M.NSenior Independent Non-Executive Director

Chairman of Audit CommitteeChairman of Nomination Committee

Chairman of Remuneration Committee


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DIRECTORS PROfILE

Mr Jesper B. Madsen, aged 53, a Dane, wasappointed to the Board on 21 May 2003.

Mr Madsen obtained a Masters of Law from CopenhagenUniversity, Denmark and later studied Scottish/English law

at the University of Edinburgh, Scotland. Mr Madsen workedin the legal field for 4 years. He has since been working with theCarlsberg A/S Group for 23 years, beginning his career withinthe Group as a Personal Assistant to the CEO of CarlsbergInternational. Mr Madsen subsequently held positions as theVice President responsible for overseas investments/markets,General Manager and Managing Director of Carlsberg BreweryHong Kong Ltd and Chief Operating Officer of Carlsberg AsiaPte Ltd.

Mr Madsen is now the Senior Vice President of Carlsberg BreweriesA/S with responsibility for Asia, among other markets. He alsoholds the position of Chairman of Carlsberg Brewery Hong

Kong Limited (Hong Kong), Hue Brewery Ltd (Vietnam), SouthEast Asia Brewery Ltd (Vietnam) and International BeverageDistributors Ltd (Vietnam). He is also the Vice Chairman of TibetLhasa Brewery Company Ltd (Tibet Autonomous Region), LaoSoft Drink Co., Ltd., (Laos) and Lao Brewery Co. Ltd (Laos).

He is a Board member of Xinjiang Lanjian Jianiang InvestmentCo. Ltd (China), Wusu Beer Co. Ltd (China), Xinjiang Beer(Group) Company Limited (China), Ningxia Xixia JianiangBrewery Limited (China), Xinjiang Wusu Beer Co. Ltd (China),Halong Beer and Beverage Joint Stock Company (Vietnam),Hanoi-Vungtau Beer Joint Stock Company (Vietnam), CarlsbergMalawi Brewery Ltd. (Malawi), The Bottling and Brewing GroupLimited (Malawi), Southern Bottlers Ltd (Malawi), CaretechLimited (Cambodia), Ceylon Brewery Limited (Sri Lanka), LionBrewery (Ceylon) PLC and Gorkha Brewery Ltd (Nepal). MrMadsen also sits on the Boards of several private companieswithin the Carlsberg Breweries A/S Group.

JESPER BJOERN MADSEN

Non-Executive DirectorMember of Nomination Committee


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DIRECTORS PROfILE

Mr Soren Holm Jensen, aged 39, a Dane, wasappointed as the Managing Director of Carlsberg

Malaysia on 5 March 2007.

Mr Jensen graduated with a BSc in Business Administrationand holds a Masters of Science degree in Economics and

Business Administration from the Aarhus School of Business,Denmark. Mr Jensen was the Managing Director of CarlsbergHong Kong Ltd., from June 2004 to February 2007. Mr Jensen

joined the Carlsberg Group in 1998 and has held variousmanagerial positions within the sales, marketing and export

divisions. He was also the Vice President of the Export & LicenseDivision of Carlsberg in Copenhagen, Denmark. Mr Jensen hadworked as International Key Account Manager and as a Salesand Marketing Manager in the food segment of the fast movingconsumer goods industry prior to joining the Carlsberg Group.

Mr Jensen is presently the Chairman of Carlsberg DistributorsTaiwan Limited, (Taiwan). He is also Member of the GoverningCouncil of the Confederation of Malaysian Brewers Bhd and aMember of the Malaysian Danish Business Council.

SOREN HOLM JENSEN

Managing Director


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Dato Chin Voon Loong, aged 51, a Malaysian, wasappointed to the Board on 1 April 2003.

Dato Chin graduated with a Bachelor of Science(Honours) degree in Systems and Management from

The City University, London and is a Fellow Member of theInstitute of Chartered Accountants in England and Wales. Heis also a Chartered Accountant with the Malaysian Institute ofAccountants, an Associate Member of the Malaysian Instituteof Taxation, Affiliate of The Malaysian Institute of CharteredSecretaries and Administrators (MAICSA) and a Member of theInstitute of Public Relations Malaysia.

Dato Chin has worked with Carlsberg Malaysia for 21 years. Afterholding the position of Chief Financial Officer and subsequently,as Commercial Director with Carlsberg Malaysia, he currentlyholds the position of Executive Director-Corporate Affairs. He isalso the Company Secretary of CBMB. Dato Chin was previouslya Member of the Audit Committee.

Currently, Dato Chin holds directorships in Lion Brewery(Ceylon) PLC (Sri Lanka), South East Asia Brewery Ltd(Vietnam), International Beverage Distributors Ltd (Vietnam),Gorkha Brewery Ltd (Nepal) and Carlsberg Distributors TaiwanLimited, (Taiwan). Dato Chin is also a Member of the GoverningCouncil of the Confederation of Malaysian Brewers Berhad andalso serves on the Boards of several private companies withinthe Carlsberg Asia Group.

DATO CHIN VOON LOONG

D.S.P.N.Executive Director

DIRECTORS PROfILE


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DIRECTORS PROfILE

Mr Janne Petteri Juvonen, aged 42, a Finn, wasappointed to the Board on 31 May 2007.

Mr Juvonen obtained a Masters of Business andAdministration from Helsinki School of Economics. Prior to

joining Carlsberg Malaysia, Mr Juvonen was the CommercialExcellence Director at Carlsberg Breweries A/S, Denmark. MrJuvonen was the Director of Sales Development & Administrationfor Oy Sinebrychoff Ab and Director Customer & Marketing inOy Coca-Cola Joumat Ab in Finland before joining the CarlsbergGroup.

Mr Juvonen is employed as Commercial Vice President Asia andholds directorships in South East Asia Brewery Ltd (Vietnam),Hue Brewery Ltd (Vietnam), Lao Brewery Co. Ltd (Laos),Carlsberg Brewery (HK) Ltd., (Hong Kong), Carlsberg Brewery(Guangdong) Ltd (China), Kunming Huashi Brewery CompanyLtd., (China) and Dali Beer Company Ltd (China). Mr Juvonenalso serves on the Board of several private companies within theCarlsberg Asia Group.

JANNE PETTERI JuVONEN

Non-Executive Director


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DIRECTORS PROfILE

OTHER INfORMATION ON DIRECTORSNone of the Directors have any family relationship with any director/substantial shareholder of the Group and the Company, norany interest in any business arrangement involving the Group and the Company. None of them have had any convictions for anyoffences, other than traffic offences, within the past 10 years.

Mr Gopala Krishnan, aged 68, a Malaysian, wasappointed to the Board on 3 December 2007.

Mr Krishnan is a Fellow of the Australian Society ofCertified Practising Accountants (CPA Australia) and had

also attended the Advanced Management Programme atthe Harvard Business School. He was the Managing Directorof Land & General Berhad, a position he held from 2001 to2007. Mr Krishnan was also the Executive Director of AntahHoldings Berhad from 1990 to 2000. Mr Krishnan startedhis career at ICI Malaysia Sdn Bhd (ICI) and has held variousmanagement positions within the Group and that of ChemicalCompany of Malaysia Berhad. He was subsequently appointed

as Managing Director of ICI Fertilisers Malaysia Sdn Bhd., ICIIndustrial Chemicals Malaysia Sdn Bhd. and Executive Directorof Chemical Company of Malaysia Berhad. He was also theCouncil Member of the Federation of Malaysian Manufacturers(FMM).

Mr Krishnan is currently the President of the MalaysianInternational Chamber of Commerce & Industry (MICCI) andserves as a member of the Board of Directors of the MalaysianIndustrial Development Authority (MIDA) as well as a Committeemember on PEMUDAH. Mr Krishnan is the Chief OperatingOfficer and Head of Asia for Green Rubber Global.

M.R. GOPALA KRISHNAN C.R.K. PILLAI

Independent Non-Executive DirectorMember of Audit Committee

Member of Remuneration Committee


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MANAGEMENT TEAM

1 . Soren Holm Jensen Managing Director2. Dato Chin Voon Loong D.S.P.N. Executive Director, Corporate Affairs

3.Chan Chee Seng General Manager, Corporate Services4.Matthew John Callan

General Manager, Supply Chain

5. Ole Sovso Nielsen General Manager, Marketing6. Roy Lee Chin Seng General Manager, Sales & Distribution7.Chong Choon YengChief Financial Officer

12

35746


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CHAIRMANS ADDRESS

2007 was an extremely challengingyear for the Group. The re-structuringprogramme developed and executedin the previous year that led to thepoor performances in the 4th quarterof 2006 and 1st quarter of 2007 had tobe revised. Inventory levels in the tradewere optimized to manage operationsand working capital more effectivelyand to ensure the continued qualityand freshness of Carlsberg products toconsumers. The aforementioned had animpact on the Groups market share.

A new Management Team complementedby experienced Senior Management ofthe Group was established. The Teamdeveloped a set of revised strategic

plans and initiatives which were executedunder the headline of Must Win Battles(MWBs).

The implementation of the MWBscommenced at the end of the 2nd

quarter 2007 and the initiatives launchedto support the MWBs resulted inpositive developments in the Groupsoperations. Exciting new products werelaunched. Improvements in organisationaleffectiveness as well as programmes oncosts optimization were put in place.

The Groups performance for the secondhalf of the year recovered but not tothe extent of making up for the weakperformance in the first half of the year.On a quarter by quarter performancebasis, the Groups Management Teamhad been focusing on delivering value toits shareholders since the 3rd quarter ofthe year.

Taking the above into consideration, theGroup recorded a satisfactory performancefor 2007 with Group revenue reachingRM897.5 million and profit before tax ofRM97.7 million.

On behalfof the Board

of Directors of

Carlsberg BreweryMalaysia Berhad, I

am pleased to presentthe Annual Report and

the Audited FinancialStatements of the Groupand the Company for thefnancial year ended 31December 2007.


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CHAIRMANS ADDRESS

The Board after taking into considerationthe Groups funding requirements and theobjectives of maximising shareholdersreturns is recommending the paymentof a final gross dividend of 7.5 sen perordinary share of RM0.50 as well asa special gross dividend of 22.5 senper ordinary share of RM0.50. Thistogether with the interim gross dividendof 5.0 sen per ordinary share of RM0.50brings the total gross dividends for thefinancial year to 35 sen per ordinary shareof RM0.50 each. The total net payoutamount for the financial year amounts toRM79.0 million which is equivalent to a100.7 per cent payout of profit after taxfor the Group.

The Board and the various BoardCommittees had been active during theyear in support of the new ManagementTeam. The Board and the AuditCommittee chose to adopt the revisedrecommendations of the Malaysian Codeof Corporate Governance before BursaMalaysia adopted the recommendationsin the Listing Guidelines. The GroupsAudit Committee now comprises onlyIndependent Non-Executive Directors, oneof whom is a registered professional withthe Malaysian Institute of Accountants.

The duty paid malt liquor beveragemarket which had been declining sincethe implementation of the 3 successiveduty increases in 2003, 2004 and 2005recovered marginally in 2007. Theindustry is pleased to note that there hadbeen no increase in the duties for beerand stout in the Government Budget2008 announcement. Malaysia is still thenation with the 2nd highest duty in theworld after Norway and the continuedreprieve from duty increases is necessaryas the consumer prices for beer productsin Malaysia are already very high. Thisis not consistent with the promotionof Malaysia as a vacation destinationfor tourists. Around the region, nationsare reducing their excise duties on lightalcoholic beverages such as beers andwines as part of a package of initiativesto attract a higher level of visitors tovacation in their countries. Hong Kong

had most recently adjusted their dutiesfor beer products and wines to zero rate.

The Group will continue to implementits MWBs in the coming year. TheseMWBs will focus on securing value forshareholders. When fully implemented,the Group is expected to be in a strongerposition to achieve its medium to longterm commercial objectives of growingprofitable market share in a fast changingand challenging environment.

Meanwhile, the Board and I are pleased towelcome Mr. Janne Petteri Juvonen andMr. M.R. Gopala Krishnan C.R.K. Pillai tothe Board. Mr. Janne Petteri Juvonen wasappointed as a Non Executive Director on31 May 2007 and Mr. Gopala Krishnanwas appointed as an Independent NonExecutive Director on 3 December 2007.

Since the last Annual General Meeting,Mr. Soren Ask Nielsen, Dato JorgenBornhoft and Datuk (Dr.) Lim Ewe Jinhave resigned from the Board. The Boardwishes to record its appreciation to all ofthem for their invaluable contributionsand guidance to the Group.

On behalf of the Board, I wish tothank our most invaluable assets theManagement and employees who arecontinuing to shoulder the heavy tasksof rebuilding a Winning Company. Theirunwavering commitment and dedicatedefforts will ensure that the Group willachieve its strategic objectives in theshortest possible time. I would also liketo express my special thanks to all thedistributors, suppliers, retailers andconsumers who have been supportingthe Group firmly and strongly.

Finally, I wish to express my thanks tothe shareholders and stakeholders foryour continued support.

Dato Lim Say ChongChairman

Shah Alam26 March 2008

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Bagi pihak LembagaPengarah Carlsberg BreweryMalaysia Berhad, sayadengan sukacitanya inginmembentangkan LaporanTahunan dan PenyataTahunan Beraudit bagiKumpulan dan Syarikat untuktahun kewangan berakhir 31Disember 2007.

Tahun 2007 merupakan satu tahunyang amat mencabar bagi Kumpulan.Program penyusunan semula yangtelah dibangunkan dan dilaksanakanpada tahun lepas yang membawakepada prestasi yang menurun padasuku keempat tahun 2006 dan sukupertama 2007 terpaksa disemak semula.Paras inventori dalam dagangan telahdioptimumkan untuk mengurus operasidan modal kerja dengan lebih berkesandan memastikan kualiti dan kesegaranyang berterusan bagi produk Carlsbergkepada pengguna. Perkara yangdisebutkan di atas telah memberi kesankepada bahagian pasaran Kumpulan.

Satu Pasukan Pengurusan baruyang dilengkapkan oleh PengurusanKanan yang penuh pengalaman telahditubuhkan. Pasukan tersebut telahmembangunkan satu gagasan rancangan

strategik dan inisiatif yang telah disemaksemula dan telah dilaksanakan di bawahtajuk Perang Mesti Menang (PMM).

Pelaksanaan PMM bermula pada akhirsuku kedua tahun 2007 dan inisiatif yangdilancarkan untuk menyokong PMMmenghasilkan perkembangan positifdalam operasi Kumpulan. Produk baruyang mengujakan telah dilancarkan.Peningkatan dalam keberkesananorganisasi serta program mengenaipengoptimuman kos telah disusun.

Prestasi Kumpulan bagi separuh pertamatahun telah pulih tetapi tidak mencukupiuntuk sampai kepada tahap yang dapatmemulihkan prestasi lemah pada separuh

pertama tahun tersebut. Berdasarkanprestasi suku tahun ke suku tahun,Pasukan Pengurusan Kumpulan telahmemberikan tumpuan utama ke atasmenyampaikan nilai kepada pemegangsahamnya semenjak suku ketiga tahun.

Mengambil kira perkara di atas,Kumpulan telah mencatatkan prestasiyang memberangsangkan bagi tahun

2007 dengan pendapatan Kumpulanmencecah RM897.5 juta dan keuntungansebelum cukai sebanyak RM97.7 juta.

Selepas mengambil kira keperluanpendanaan Kumpulan dan objektifdalam memaksimumkan pulanganbagi pemegang saham, Kumpulanmengesyorkan pembayaran dividenkasar akhir sebanyak 7.5 sen bagi setiapunit saham biasa bernilai RM0.50 sertadividen kasar khas sebanyak 22.5 senbagi setiap unit saham biasa bernilaiRM0.50. Oleh itu, bersama-samadengan dividen kasar interim sebanyak5.0 sen bagi setiap unit saham biasabernilai RM0.50 membawakan jumlahdividen kasar bagi tahun kewangankepada 35 sen bagi setiap unit sahambiasa bernilai RM0.50 setiapnya. Jumlahbayar balik bersih bagi tahun kewanganberjumlah sebanyak RM79.0 juta dan inibersamaan dengan 100.7 peratus bayarbalik keuntungan selepas cukai bagiKumpulan.

Pihak Lembaga dan pelbagaiJawatankuasa Lembaga adalah aktifsepanjang tahun sebagai penyokongPasukan Pengurusan baru. Lembagadan Jawatankuasa Audit memilih untukmenerima guna saranan Kod MalaysiaUrus Tadbir Korporat yang telah disemaksemula sebelum Bursa Malaysiamenerima guna saranan dalam GarisPanduan Penyenaraian. JawatankuasaAudit Kumpulan kini terdiri daripadahanya Pengarah Bukan Eksekutif Bebas,yang mana salah seorang daripadanyaadalah profesional berdaftar denganInstitut Akauntan Malaysia.

Pasaran minuman keras malt yangberbayar duti yang menurun semenjakpelaksanaan 3 kenaikan duti berturut-turut pada tahun 2003, 2004 dan 2005dan telah pulih sedikit pada tahun 2007.Industri amatlah berpuas hati untukmengetahui bahawa tidak terdapatkenaikan dalam duti untuk bir danstout dalam pengumuman BelanjawanKerajaan 2008. Malaysia masih lagi

merupakan Negara dengan duti keduapaling tinggi di dunia selepas Norwaydan penangguhan berterusan daripadakenaikan duti adalah perlu kerana hargapengguna untuk produk bir di Malaysiasudah pun terlalu tinggi. Ini tidak konsistendengan promosi ke atas Malaysia sebagaisatu destinasi percutian bagi pelancong.Beberapa negara di sekitar rantau inimenurunkan duti eksais mereka ke atasminuman keras ringan seperti bir danwain sebagai sebahagian daripada pakejinisiatif untuk menarik bilangan pelawatyang lebih tinggi untuk bercuti di negaramereka. Baru-baru ini, Hong Kong telahmenyesuaikan duti mereka untuk produkbir dan wain kepada kadar sifar.

Kumpulan akan terus melaksanakanPMM pada tahun akan datang. PMMini akan memberikan tumpuan terhadapmenjamin nilai bagi pemegang saham.Apabila dilaksanakan sepenuhnya,Kumpulan dijangka akan berada padakedudukan yang lebih kukuh untuk

mencapai objektif komersial jangkasederhana ke jangka panjang dalambahagian pasaran yang bertumbuhdalam persekitaran yang berubahdengan begitu cepat dan penuh cabaran. Sementara itu, Pihak Lembaga dan sayadengan sukacitanya mengalu-alukankedatangan En. Janne Petteri Juvonendan En. M.R. Gopala Krishnan C.R.K.Pillai menyertai Jemaah Lembaga. En.Janne Petteri Juvonen telah dilantiksebagai Pengarah Bukan Eksekutif pada31 Mei 2007 dan En. Gopala Krishnantelah dilantik sebagai Pengarah BukanEksekutif Bebas pada 3 Disember 2007.

UCAPAN PENGERUSI


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REVIEW OF OPERATIONS BY MANAGING DIRECTOR

2007 was a year of many changes forCarlsberg Malaysia, there were somedisappointments and some positiveachievements. The Group had a poor 1sthalf performance but had recovered in the2nd half of the year with improved resultsin the 3rd and 4th quarters of 2007.

The less than stellar performance in 1H2007 was largely due to the earlier re-structuring initiatives which were notsuccessful and this was compounded bycost escalation particularly in packagingmaterial costs.

I would like to start by thanking all the passionate employees of Carlsberg Malaysiafor their great efforts as the Groups improved performance in the 2nd half of 2007

would not have been possible without the excellent team efforts in executing the revisedbusiness strategies.

Q2

Q1 14

2231

3534

274

98 110

42

Q3

Q4

FY

Per ormance improving (Quarterly Proft Be ore Tax in RM Million)

0 3 0 6 0 9 0 1 2 0

QUARTERLY PBT (RM MILLION)2007 2006


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REVIEW Of OPERATIONS BY MANAGING DIRECTOR

The Group had since the 1st half of theyear achieved the following:

E st ab li sh ed a n ew e x pe ri en ce dManagement Team andrestructured the CommercialOrganisation.

Revenue growth via s tabi l iz ingmarket share and improvingproduct mix.

Optimized inventory levels

in the trade, improved theworking capital and ensuredall beer products are withinthe Companys freshnessguidelines.

S trengthened the con idence oDistributors and Customers tosecure their future support.

Raised Carlsberg MalaysiasCorporate Social Responsibilityprogramme to a higher platform

with the Carlsberg-NanyangTop 10 Charity Campaign whichover the 20 years had raiseda total of more than RM300million for the development ofschools.

Strengthened the Groupsportfolio by successfullylaunching the Carlsberg 160thAnniversary beer; the excitingnew Tuborg beer and a newJolly Shandy Lychee flavourproduct.

Improved the Groups e icienciesand cost effectiveness byimplementing a CommercialExcellence project whichresulted in major savings. AnAdministration Excellenceproject was also implementedwhich is expected to realizesavings in the following years.

In the middle of 2007 the newmanagement team revised the Groupsstrategic plan in order to achieve thelong term ambition of regaining marketleadership - profitably. Under the conceptof Must Win Battles a number of projectswere identified to be implemented during2008 and 2009. The Groups selectedfive Must Win Battles are:

1. Reb ild Winning C lt reDrive unified companyvalues and identity. Build a

performance-based culturewith improved cross functionalcooperation and increased focuson Consumer and Customerneeds;

2. Win the Carlsberg GL ChallengeMaintain our market leadershipin the mainstream beer segmentand revitalize the CarlsbergGreen Label brand image viabest-in-class Communication,Innovation and on-ground

Activation;

3. Develop Strong Port olio o brands Optimize role and strategy of

existing portfolio brands. Launchnew brands to target differentConsumer needs and differentConsumption occasions, withparticular focus on the Premiumsegment;

4. Drive Sales Execution Excellence Ensure recruitment, retention

and development of best salesPeople. Optimize Structure ofsales force and Distributors.Strengthen commercial Mindsetof sales staff. Develop effectiveProcesses and IT tools;


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REVIEW Of OPERATIONS BY MANAGING DIRECTOR

5. Establish a Strong Plat orm orGrowthDrive efficient use of resourcesand improve productivity inAdministration and SupplyChain; establish effectiveand transparent BusinessProcesses; build robust dataand Management InformationSystems.

The implementation of the projectsunder the Must Win Battles is also theGroups journey to make CarlsbergProbably the best beer company inMalaysia. We acknowledge that thecompetition had benefited in terms ofmarket share gains during our businessrestructuring. We however believe thatwith our continued focus to implementthe strategic agenda, we shall be ina stronger position to grow profitablebrand share and maximize medium andlong term value for our shareholders.

Escalating material costs have been amajor concern for the Group but we willcontinue to drive the initiatives under theExcellence Projects to reduce the impacton profit margin. As announced earlier,the Groups major contract manufacturingcustomer, Carlsberg Singapore PteLtd had re-located its sourcing of itssupplies to a neighbouring country dueto competitive reasons, including the

imposition of security ink markings onsuch exports, which have resulted inadditional costs to the Company as wellas lower duties between Singapore andthe neighbouring country. This will havean impact on the Groups export salesand earnings in 2008 and future years.

It is the hope of the Group and theindustry that the Government, beingaware that the excise duties in Malaysiaare the 2nd highest in the world afterNorway, will not introduce further duty

increases for a few years until suchtime the excise duties of neighbouringcountries catches up with Malaysia. Thepresently high excise duties encouragesmuggling. Whilst enforcement against

smuggled beer products have improvedover the period, the Group is hopefulfor continued effective enforcement tofurther curb smuggled imported beerproducts in the country.

The Group will continue to invest intraining to develop the skill base ofthe employees. Continued training ofemployees is essential to equip themwith the skills and knowledge to enhancetheir performances in the dynamic andchallenging competitive environment.

Competition in Malaysia is expectedto remain intense especially with theentrance of a 3rd brewery in the countryin 2007. The Group will neverthelesscontinue to make its business more costeffective and to maintain and expand itsCarlsberg brand leadership for the beersegment as well as to increase share inthe stout segment.

In the light of the foregoing, the Groupexpects 2008 to be a very challengingyear.

Soren Holm JensenManaging Director

Shah Alam26 March 2008



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BRAND STRATEGY

Delivering a strong portfolio of brands is the key strategic imperative forCarlsberg Malaysia to grow proftably. The port olio is constantly strengthened

through clear branding strategy with Carlsberg brand as the leading internationalbeer, supported by Tuborg, Skol and Royal Stout. Each of the brands has its own

unique heritage and positioning, which gives them a distinct brand identity and appeal.


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BRAND STRATEGY


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BRAND PORTFOLIO

CARLSBERGCarlsberg Pilsner is the flagship in the

Carlsberg Groups portfolio of beers. A regularin millions of bars across 140 countries world wide

it is a truly international brand and pilsner beer ofexceptional taste and quality. Carlsberg Pilsner is a

well-proportioned bottom-fermented lager beer. Thebitterness of the hops and the apple-like sweetness provide

a harmoniously balanced taste. In Malaysia, Carlsberg GreenLabel is the beer that most beer drinkers prefer.

CARLSBERG SPECIAL BREWSpecial Brew was originally brewed

by Carlsberg in Denmark for WinstonChurchill. His visit to Copenhagen in 1950 was

commemorated with a special brew producedin his honour. Churchills favourite drink was

cognac, so in brewing him a commemorative beer,the brewers at Carlsberg created a stronger lager with

cognac flavours among its tasting notes. Special Brewwas launched in Malaysia in 1974 and has undoubtedly

been the original strong beer since then. Special Brew is a fullbodied, fruity tasting, strong lager with a good clean bitterness.The alcohol strength of 8.8% by volume is very well received byconsumers who prefer a strong beer.


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TuBORGCarlsberg Malaysia added another

premium label to its list of world classbrands with the introduction of Tuborg,

one of the worlds fastest growing premiumbeers. The story of Tuborg starts in Hellerup,

north of Copenhagen, where the Tuborg Brewerybrewed Denmarks first pilsner-type beer in 1880 and

packaged it in bottles with a distinctive green label. Itbecame instantly popular with the Danes and has since

grown to become Denmarks best selling beer. These daysTuborg is a real cosmopolitan beer which is sold in more than

70 different countries.

BRAND PORTfOLIO

SKOLFirst brewed in 1959 for the European

market, Skol International was founded in1964 by four international breweries to market

the brand globally. It is now available in morethan 20 countries around the world. Carlsberg

Breweries has the licence to brew and market Skolworldwide, apart from Africa and South America. The

beer is part of Carlsberg Breweries international portfolio.The good quality and great taste of Skol is underlined by the

brand winning the coveted Australia International Beer Awardsand annual sales of over 9 billion bottles a year.

Skol is truly winning the world over.

ROYAL STOuTThe honest to goodness Royal Stout

was introduced to the Malaysian marketin 1992 to complement the companys

existing range of products. The brand has

since then grown by attracting drinkers to itsgenuinely brewed smooth stout flavour.


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BRAND PORTfOLIO

JACOBSEN BRAMLEY WITJacobsen is a specialty beer brewed at the famous

Jacobsen Brewery in Copenhagen, Denmark. It is asuper premium beer and is found exclusively in selected

fine dining outlets. The Jacobsen Bramley Wit has a distinctrefreshing taste with very discrete bitterness and a refreshing

acidity from the Bramley apples added to the brew.

TETLEYSThe Tetleys name has been synonymous

with the brewing of high quality ales for almost200 years. Today, we combine these centuries

of experience with the latest brewing technologyto create ales to suit all the tastes of the modern ale

drinker. Tetleys Original is a traditional style ale with a

full-bodied hoppy flavour and a refreshing crispness on thepalate.

CORONAFound in more than 150 countries,

Corona is one of the most highly-

recognized Mexican products in the world.This refreshing beer, with its signature lightstraw color, is Mexicos leading national brand.

Whats more, it ranks as the fourth most popularbrand in the U.S and is now distributed in Malaysia

by Carlsberg Malaysia. A cold Corona is a well deservedreward anytime, anywhere. Its a great choice when youre

looking for relaxing refreshment. When you enjoy a Corona,you are tasting the pride of Mexicos leading beer.


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BRAND PORTfOLIO

BEAMISHBeamish Genuine Irish Stout, the flagship product of Irelands

oldest brewery is the only Irish Stout brewed exclusively inIreland. The brand has been brewed at the Beamish Brewery in

Cork since 1792 and is renowned for its smooth, consistent quality

and taste. Beamish Stout has won numerous accolades over the last11 years including the 1996 - International Brewing Oscar for Beamish

Stout - The Best Stout in the World, awarded at the Brewing IndustryInternational Awards in Harrogate, England.

JOLLY SHANDY Jolly Shandy is a refreshing mix of Lemonade and

real Beer. The brand was re-launched in 2007 withan improved lemon taste and a new design. To coincide

with the new look, a new variant, Jolly Shandy Lychee wasintroduced for those who cannot get enough of the great taste

of Jolly Shandy.

NuTRIMALTLaunched in June 1995, Nutrimalt is a great tasting, non-

alcoholic malt beverage that is nourishing and packed withvitamins and nutrients such as Vitamin C and B complex. It can

be consumed at any time of the day but is a great energy boosterafter a workout and also helps to recharge your body after a strenuous

working day.


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In 2007, Carlsbergcelebrated its 160

years anniversary,since the first brew on

10th November 1847 inCopenhagen, Denmark. And

to commemorate the occasion,the Carlsberg 160th Anniversary

Brew was crafted to celebrate thismomentous milestone.

CARLSBERG

C E L E B

R A T I N

G

1 6 0 T H

A N N I V E

R S A R

Y

B R E W


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CARLSBERG

The Anniversary Brew was inspired byan original recipe from the 19th century.Made from 3 different malts, doublebrewed and blended to perfection, thebeer has a darker, richer colour comparedto a regular beer. It also has a deeper,

more robust and slightly sweet, caramel-like flavour. The 5.5 % Alcohol by Volume(ABV) beer was available for a limitedperiod and was well received by beerdrinkers nationwide. The launch of theCarlsberg 160th Anniversary Brew and theensuing activities was the highlight of thecelebration for the evergreen Carlsbergbrand.

Carlsberg continued to extend itsinnovative first in Malaysia Extra Colddraught beer to key entertainmentand drinking outlets in major towns inPeninsular Malaysia. Consumers are notonly attracted to the unique ice formation

on the dispensing tap but also the crispand refreshing taste of Carlsberg draughtbeer served at -1 degree Celcius.


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PART OF THE GAME

F O O

T B A L

L &

C A

R L S B E R G

P A R T

O F

T H E G

A M E

Carlsberg has astable of strong

football sponsorshipproperties, amongst which

Liverpool, UEFA Super Cupand Euro championships. By

leveraging on these propertiesand activating it with money-cant-

buy experiences, Carlsberg deliveredprobably the best consumer promotion

that ran from April to June 2007. We sent 4lucky winners on a luxury cruise onboard theirown private yacht along the French Rivierafor 7 days. To top it off, they were treated tothe best European football showdown in VIPstyle - the UEFA Super Cup.


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PART Of THE GAME

In August, football fans celebrated thestart of the English Premier Leagueseason with Carlsberg, with the uniqueopportunity to win ten all expense paidtrip to watch the match of the season,Manchester United vs Liverpool at Anfield

Stadium. The winners were selected froma contest in fifty participating sportsbars nationwide, where every purchaseof Carlsberg brings them closer to theirdream football holiday trip.

Football fans in Malaysia were treatedto a personified football experience withCarlsberg bringing in former greats fromthe English Premier League. John Barnes,once a prominent figure in Liverpool FCwas given a heros welcome by 500 strong

Liverpool fans at Mardi Gras, 1 Utama. IanRush then followed suit by attending anofficial launch of Carlsberg / Sports BookGenting Football Promotion at GentingHighlands. As expected, the boisterousLiverpool fans were there as well showingtheir support


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PART Of THE GAME

Gary McAllister, also a former Liverpoolplayer, made his way to Malaysia inNovember to officiate the inauguralCarlsberg LSCM International Futsal2007. Liverpool Fan Club members from5 different countries participated in this

tournament and the presence of GaryMcAllister made it even more special forthe die hard Reds fans.

But it was in December that saw probablythe largest gathering of football fans fora viewing party. Approximately 6,000people attended the viewing party atSunway Amphitheatre where Carlsbergbrought in 2 former legends, Ray

Wilkins and Lee Sharpe. Both playershad an illustrious career in the leagueand the 6,000 eager fans got up closeand personal with their idol, truly anexperience to cherish.

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