News I N F O R M AT I O N T O S H A R E H O L D E R S

8 AUGUST 2002

The number one company in Swiss beverage business Feldschlösschen Beverages Ltd. was acquired by Carlsberg Breweries in 2000. Since then, the company has implemented a major reorganisation plan streamlining sale, logistics and administrative functions. In 2001, the company carried out further significant investments to improve efficiency in production, and the assortment of own products as well as third party trading products were substantially reduced. Due to these initiatives, Feldschlösschen’s 2001 results were above expectations.

Feldschlösschen’s impressive plant in Rheinfelden with ‘The World’s most beautiful brewhouse’.

Market leader With 45 per cent of the beer market, Feldschlösschen Beverages Ltd. is the largest brewing company in Switzerland and the breweries are renowned for their long-established traditions and their dedication to high quality. The brewery group employs approx. 2,200 people and produces 4.5m hl of beer, soft drinks and mineral water at four breweries and four bottling plants. The headquarters is in Rheinfelden near Basel. The Feldschlösschen Beverages Ltd. dates back to 1876 when the Brauerei Feldsschlösschen was founded. It became a limited liability company in 1890 and already at the turn of the century the country’s largest brewery. In 1974, the brewery entered the market for mineral waters and soft drinks. After a merger with the brewery Hürlimann in 1996, Feldschlösschen-Hürlimann Holding

was created. In 2000, the company’s beverage division was acquired by Carlsberg Breweries. The Swiss beer market is very sophisticated with a high level of brand loyalty, a large premium segment and a high import share. The total consumption of 4.1m hl beer, corresponding to a per capita consumption of 57 litres, has been declining during 2001; however, Feldschlösschen was able to curb the downward trend in market share for Swiss beer products. Strong Brands Feldschlösschen is by far the leading brand in the country. The second largest national beer brand, Cardinal, which was re-launched in 2001, is also a Feldschlösschen product. In addition, Feldschlösschen today exports more than 0.2m hl of the non-alcoholic beer Moussy. Since October 2001, the international premium product Carlsberg has been brewed locally, and in a short time it has gained a good footing in the market. Carlsberg A/S’ Q2 Financial Statement 2002 to the Copenhagen Stock Exchange See page 3

Facts about Feldschlösschen Beverages Ltd. 11 beer brands In Feldschlösschen Beverages Ltd., a total of 11 brands of beer are produced at four different brewery locations. These are the two national brands Feldschlösschen and Cardinal, the regional brands Gurten, Hürlimann, Löwenbräu Zürich, Valaisanne and Warteck, as well as the brands Carlsberg and Tuborg, which are brewed under licence for the Swiss market. In addition, the RTD Teezer and, as an export item, primarily for the countries in the Gulf Region, the non-alcoholic beer Moussy are produced. Altogether, Feldschlösschen has 38 beer products.

8 production sites Breweries in Rheinfelden (two breweries, Feldschlösschen and Cardinal), Fribourg and Sion. Mineral water bottling operations in Passugg, Rhäzüns and Yverdon. Soft drink bottling operations in Eglisau. 22 beverages distribution centres Centres of distribution for customers from the restaurant, beverage and retail segments.

Basel

Rheinfelden Eglisau

Delémont Dietikon Wangen b. O Solothurn Biel Marin Givisiez Fribourg Yverdon Le Mont

Ebikon Chur

Thun Rhäzüns

Aigle Satigny

Bern Kehrsatz

Will Dietlikon

Sion

Production sites

Passugg

St. Moritz Visp

Taverne

Distribution centres

Headquarters

BBH to build breweries in Ukraine and Russian Far East Baltic Beverages Holding AB (BBH) initially invests approx. USD 50m in the building of a new brewery in Kiev in Ukraine. From the start the brewery will have a capacity of 1.2m hl beer and is expected to be running in 2004. Later on, investments to expand the capacity will be undertaken. The aim of the investment is to strengthen BBH’s position in the capital area which has a strong purchasing power and at the same time to optimise distribution. Today, BBH has a market share of 20 per cent and two other breweries in Ukraine – Slavutich in the Eastern part and Lvivska Pivovarnija in the Western part of Ukraine. The largest Russian brewery Baltika,

which is a subsidiary of BBH, is to build a new brewery in Khabarovsk in Russian Far East region. The population of the region is approx. 10m. The capacity of the new brewery will be 1 million hl, and the brewery is scheduled to start brewing beer in the summer of 2003. The investment is expected to be around USD 50m. The new brewery will further strengthen BBH’s market position in Eastern Russia. At the same time it will result in lower distribution costs for Baltika beer, which is the biggest beer brand in Russia. Today, Baltika beer is brewed at breweries in the Western and Southern part of Russia. BBH’s market share in Russia is approx. 33 per cent and the prerequisite for

an increase in growth is extension of the capacity, partly by building new breweries and partly by increasing the capacity of existing breweries. The new brewery in Khabarovsk is the third new brewery BBH has decided to build this year. BBH is owned 50/50 by Carlsberg Breweries and Finnish Hartwall.

Carlsberg Breweries strengthens its position in South-East Europe Carlsberg Breweries A/S has entered an agreement with Ferroal Ltd. to acquire 59.4 per cent of the Bulgarian brewery Shumensko. Ferroal continues as a minority shareholder. Carlsberg Breweries A/S has also entered an agreement to acquire 67 per cent of another Bulgarian brewery, Pirinsko Pivo. The shares are sold by a group of institutional and private investors. Both acquisitions are subject to approval by local authorities. Pirinsko Pivo is a public company and as majority shareholder of Pirinsko Pivo, Carlsberg Breweries is obliged under Bulgarian law to make a public offer for the remaining share capital. End of May this year, Carlsberg Breweries increased its shareholding of the

Croatian brewery Panonska to 80 per cent and the acquisition of majority shareholding in Shumensko and Pirinsko should also be seen as part of strengthening the position in South-East Europe. Shumensko, which is situated in the town Shumen close to the Black Sea coast, has over the last few years experienced substantial growth and with a production of 340,000 hl today has a market share of approx. 8 per cent of a total market of nearly 4.5m hl beer. The Bulgarian per capita consumption is 54 litres. The Shumensko brand is among the few traditional quality brands, and will therefore be the core brand in the future product portfolio. Furthermore, Carlsberg Breweries ex-

pects to introduce both the Carlsberg and Tuborg brands on the Bulgarian market. Shumensko was established in 1882 and is thus among the oldest Bulgarian breweries. In 1948, the brewery was nationalised. 50 years later, in 1998, the Bulgarian state sold the brewery which then again became privately owned. Pirinsko Pivo, which is situated in Blagoevgrad 100 km south of the capital Sofia, has over the last few years experienced substantial growth and today has a market share of 12 per cent of a total market. The Pirinsko brand is positioned in the standard price segment, and therefore supplements the higher priced Shumensko brand, as well as the Carlsberg and Tuborg brands.

Carlsberg spins a web of success Columbia Pictures’ Spider-Man made movie history by earning a record-shattering USD 115m in its opening weekend. Carlsberg Breweries can share a part of Spiderman’s success, as one of its famous lorries complete with green and white logo is featured prominently in the film.

The lorry’s role in ‘Spider-Man’ is part of Carlsberg Breweries’ product placement campaign, which has put Carlsberg in films such as The Pledge, The Wedding Planner, and 3000 miles to Graceland. In general, the purpose of product placements is to increase general awareness of the Carlsberg brand among its target consumers. Carlsberg Corporate Marketing has developed a new strategy for product placement using the theme ‘less is more.’ Previously, Carlsberg had been placed in a large number of films, fifteen in 2001, with a wide variety of genres and appeal.

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The new strategy will limit the number of films in which Carlsberg is placed and focus on the quality of the projects. Only films (or film casts) that fit with Carlsberg’s overall positioning will be chosen. A key element in the new strategy is to increase the influence Carlsberg Corporate Marketing has on how the Carlsberg brand is portrayed in a film.

8 August 2002

Q2 Financial Statement of the Carlsberg Group as at 30 June 2002 Satisfactory progress in results continues • Operating profit amounted to DKK 1,806m against DKK 1,351m last year (+34%). • Profit before amortisation and write-down on goodwill (exclusive of one-off items in 2001) improved by DKK 128m (+18%). • Progress in beer volume of 22% compared to last year. The Carlsberg brand showed an increase of 6%. • Expectations to the annual results are maintained.

Highlights and key figures for the period 1 January – 30 June 2002 (Unaudited) 2001* 1st half-year

2002 1st half-year

Changes in percent

Net revenue 16,241 Operating profit 1,351 Special items, net 0 Financials, net -440 Corporation tax 184 Profit before amortisation and write-down of goodwill 727 Goodwill amortisation and write-down 134 Consolidated profit 593 Carlsberg A/S’ share of profit 260

17,523 1,806 -18 -447 486 855 183 672 369

+8 +34

DKK million

+2 +164 +18 +37 +13 +42

* Before effect of non-recurring gains from the sale of shares in Thai breweries. 31.12.01

30.06.02

Changes in percent

19,158 47,455 10,918

17,911 47,918 10,860

-7 +1 -1

DKK million

Capital and reserves Total assets Net interest-bearing debt

Movements in consolidated capital and reserves: Capital and reserves as at 31 December 2001 Consolidated profit Dilution, Carlsberg Asia Dividend, Carlsberg A/S Dividend, minority interests Currency translation adjustments, etc. Capital and reserves as at 30 June 2002 Minority interests as at 30 June 2002 Carlsberg A/S’ share of capital and reserves as at 30 June 2002

The accounting policies applied have been changed compared to the Annual Accounts for 2001. The announcement to the Copenhagen Stock Exchange of 16 April 2002 explains the effect of the changes on the accounting figures for 2001 and the previous three years. For a more detailed explanation of the changes in accounting policies, please see the above-mentioned announcement. All figures in the present financial statement have been prepared in accordance with the new accounting policies. Following the receipt of the approval from

19,158 672 -905 -320 -314 -380 17,911 6,394 11,517

the Malaysian authorities, the financial statement for Asia (Carlsberg Asia Ltd.) is based on the new 50/50% joint venture structure with pro rata consolidation of Carlsberg Asia Ltd. with effect from 1 January 2002.

Comments on developments in the period under review The comments below are based on the results for the first six months of 2002 compared to the results for the first six months 3

of 2001 before the effect of non-recurring gains from the sale of shares in Thai breweries. The beer and soft drink sales of the Carlsberg Group for the first six months increased by 22% and 4%, respectively, compared to last year. Net revenue amounted to DKK 17,523m against DKK 16,241m last year (+8%). Most of the increase is due to organic growth in Western Europe and Eastern Europe as well as the companies acquired in July and August 2001 in Turkey and Poland. Operating profit totalled DKK 1,806m against DKK 1,351m last year (+34%). This is mainly attributable to, among other things, a significant profit increase in Western Europe and Eastern Europe as well as good progress in the results in Asia, i.a. due to the profit guarantee in Carlsberg Thailand. Financials, net showed a negative DKK 447m, which is slightly above expectations. This is primarily due to currency translation adjustments in Türk Tuborg and BBH (totalling DKK 83m). As expected, corporation tax is somewhat above the level of last year. Profit before tax has increased, but exchange rate movements in Russia have also caused a rise in corporation tax (deferred tax) of DKK 96m in the second quarter. Exclusive of the effect of the deferred tax in Russia, corporation tax rate totalled approx. 29. Profit before amortisation and goodwill thus amounted to DKK 855m against DKK 727m last year (+18%). Carlsberg A/S’ share of profit totalled DKK 369m against DKK 260m last year, corresponding to an improvement of 42%. The net interest-bearing debt of just below DKK 11bn has developed as expected and is at level with 31 December 2001. The project launched in order to reduce the working capital as well as the divestment of non-brewery related non-current assets together with the positive contribution from operations have been the main causes of the favourable development. The net interest-bearing debt has thus been reduced by DKK 1.1bn in the second quarter. The Carlsberg Group’s cash flow was neutral in the first six months. The cash flow from operations was a positive DKK 3.4bn, whereas cash flow for investment activities and from financing activities of DKK 3.4bn mainly relate to investments in property, plant and equipment of DKK 1.5bn net, dividend paid of DKK 0.6bn and acquisition of companies of DKK 0.6bn. Due to the lower rate of inflation, it is considered at present whether to change the translation policy for Russian and Ukrainian companies in Carlsberg Breweries/BBH from the monetary method to the usual current rate method. A decision will be made during Q3. If the change had been effected as at 30 June 2002, operating profit would have increased by DKK 18m and consolidated profit by approx. DKK 93m primarily due to lower corporation tax (deferred tax).

Western Europe: DKK million

Net revenue Operating profit Operating margin (%) Beer sales (million hl)

1st halfyear 2001

12,293 844 6.9 12.6

1st half- Changes year 2002 in percent

13,017 987 7.6 12.9

Net revenue rose by approx. DKK 0.7bn (+6%) to DKK 13.0bn, which was primarily due to the development in the UK, Italy and the Nordic countries. Operating profit for the first six months was well above last year, cf. comments on the individual markets set out below, and profit totalled DKK 143m more than last year. During the period, consumption of beer in Denmark showed a slightly rising trend, and Carlsberg Danmark registered a 2% growth in volume. Because of the large differences in excise duties between Denmark and Germany, a significant part of total Danish beer consumption is still purchased south of the border. The increase in the excise duties on

+6 +17 +3

Q2 2001

7,061 812 11.5 7.1

Q2 Changes 2002 in percent

7,379 848 11.5 7.4

+5 +4 +3

soft drinks as at 1 January 2001 still has a negative effect on soft drink sales, but the company has maintaned its market share. The results of the Danish activities are better than last year – overall due to increased efficiency. In the United Kingdom, Carlsberg-Tetley gained market share and volume particularly for the Carlsberg brand (+16%) and achieved satisfactory results. Progress in results is mainly driven by volume increases, but a more profitable product mix has also affected results positively. In Switzerland, Feldschlösschen is proceeding according to plans as regards volume and earnings.

In Sweden, the integration of Pripps and Falcon into Carlsberg Sverige is proceeding according to plans, including the closing of the brewery in Gothenburg, which was completed in April. However, Carlsberg Sverige realised lower results than expected in Q2, which is primarily caused by more reduced efficiency in production and distribution than planned. The focus on profitable brands and the ongoing restructuring project has confimed expectations of improvement in the results for the year. In Finland, Sinebrychoff achieved a good increase in volume and results and strengthened its market position. In Norway, operating profit was significantly above the level of last year, which is primarily due to an increase in volume. In Portugal, results were up on last year. The company VMPS which has been acquired in Portugal is now included in Unicer’s accounts as of 1 January 2002. In Italy, results were somewhat above the level of last year.

Eastern Europe:

signs of improvement and the brand portfolio has been strengthened. The re-organDKK million isation of Carlsberg’s brewery group has been implemented as planned, and the Net revenue 2,468 3,823 +55 1,553 2,230 +44 breweries Kasztelan and Bosman have Operating profit 492 652 +33 372 477 +28 been consolidated into Carlsberg Okocim Operating margin (%) 19.9 17.1 24.0 21.4 with effect from Q2. The shareholding in Beer sales (million hl) 13.2 18.1 +37 8.2 10.6 +30 Carlsberg Okocim thus amounts to 62%. Net revenue rose by 55% to just above DKK In BBH (50%), net revenue rose by 54% As expected, the activities in Poland show 3.8bn, which is primarily attributable to to DKK 2,383m. The organic growth and modestly positive results for the first half of growth in Baltic Beverages Holding (BBH), newly acquired companies resulted in an in- 2002. but the addition of new companies in Turkey crease in beer volume of 36%, particularly In Turkey, Türk Tuborg achieved volume and Poland in the second half of 2001 has driven by growth in Russia and the Ukraine. growth and gained market share. Inflationalso been an important factor as regards the The volume increase shows that BBH condriven cost increases were only partially increase in revenue. tinues to outperform the market. BBH’s mar- covered by increased sales prices and, in Operating profit increased by 33% to ket share in Russia is 33.3% (including addition, the exchange rate developments DKK 652m. The reduction in the operating Vena), which is 5.6%-points higher than for at the end of Q2 were very negative, which margin is attributable to low results in Turkey the same period last year. The market resulted in lower results for the first six due to, among other things, negative exgrowth in the first half of 2002 was 16% in months than expected. Based on the ecochange rate movements, whereas on balRussia and 19% in the Ukraine. In the Baltic nomic and exchange rate related developance the operating margin in BBH was main- States, the market rose by 18%, and BBH ments in Turkey, various analyses and inititained despite the negative exchange rate increased its market share to 45%. atives are currently being carried out with a movements. In Poland, market conditions are showing view to securing long-term profitability. 1st halfyear 2001

1st half- Changes year 2002 in percent

Q2 2001

Q2 Changes 2002 in percent

1st halfyear 2001

1st half- Changes year 2002 in percent

Q2 2001

Q2 Changes 2002 in percent

Asia: DKK million

Net revenue Operating profit Operating margin (%)** Beer sales(million hl)

983 169 17.2 5.4

556 241 37.2 6.9

-43 +43 +27

453 78 17.2 2.6

233 104 43.3 3.8

-49 +33 +49

* The figures relate to Carlsberg’s old structure in Asia. ** For 2002 exclusive of the one-line consolidated brewery Hite, South Korea.

Net revenue decreased by 43% to DKK 556m. This is a consequence of the new structure in Asia and the pro rata consolidation (50%).

Operating profit rose from DKK 169m last year to DKK 241m. The two important markets Malaysia and Singapore both showed satisfactory results. The Thai acti4

vities, which are still under establishment, are included with the profit guarantee agreed with the partner. When excluding the Hite brewery (share of operating profit of DKK 34m), the operating margin increased significantly due to the inclusion of the Thai activities where the operating margin is somewhat above that of the other business. As regards the figures relating to Carlsberg’s old structure in Asia, the operating margin was at level with last year.

Other activities in the Carlsberg Group Properties During the first six months, properties were sold with a total gain of about DKK 80m before tax (2001: DKK 30m), which is in line with expectations.

Repurchase of own shares The previously announced repurchasing programme will be launched today, cf. separate announcement to the Copenhagen Stock Exchange of today. Carlsberg A/S plans to repurchase own shares within a framework of maximum DKK 1bn.

Profit expectations Profit expectations for the full year remain unchanged. The positive expectations to the outcome of the restructuring projects in Western Europe as well as the synergies from the integration of the companies in Sweden and Poland as well as expectations of continued growth in Eastern Eu-

rope will contribute positively to the operating profit of the Carlsberg Group. As regards Carlsberg Breweries, an increase in revenue and a rise of approx. 20% in operating profit compared to 2001 is expected. On that background, the Carlsberg Group expects an increase in operating profit of about 15% on 2001 and a rise of about 10% in net revenue/ earnings per share (before repurchase) compared to last year, when adjusted for one-off items in 2001 (special items and the effects of the sale of the Thai shares, totalling DKK 261m).

Forward-looking statement The above sections in this financial statement reflect the management’s expectations to future events and financial results as well as to fluctuations in the most significant markets and to developments in the international money, currency and interest markets, which are experiencing greater volatility etc. in 2002 than usual. Statements about future prospects naturally always involve uncertainties and actual results may thus differ materially from those projected. Therefore, it is important to bear in mind that a number of compre-

hensive integration, rationalisation and restructuring projects have been launched in Western Europe in particular, and this contributes to the uncertainty as to projections regarding results. The synergies included in the profit expectations this year are substantial and, all things considered, the movements in the total income and expenses are deemed uncertain due to the comprehensive nature of the projects. Carlsberg is party to certain legal proceedings. In that connection, it should also be mentioned that the EU Commission has sent a Statement of Objections to Carlsberg, cf. the announcement to the Copenhagen Stock Exchange of 1 March 2002. Any rulings made on such legal proceedings are not expected to have any substantial influence on the financial position of the Carlsberg Group.

Additional information This financial statement is available in Danish and English. In case of doubt, the Danish version shall apply.

Appendix 1: Segment Information by Quarters - Q1 DKK million

2001*** Net revenue Operating profit Special items, net Financials, net Corporation tax Profit before amortisation and write-down of goodwill Goodwill amortisation and write-down Consolidated profit Minority interests Carlsberg Breweries’ share of profit Carlsberg A/S’ share of profit 2002 Net revenue Operating profit Special items, net Financials, net Corporation tax Profit before amortisation and write-down of goodwill Goodwill amortisation and write-down Consolidated profit Minority interests Carlsberg Breweries’ share of profit Carlsberg A/S’ share of profit

Western Europe

Eastern Europe

Asia

Not distributed*

Beverages total**

5,232 32

915 120

530 91

292 -122

6,969 121 367 132 356 71 285 60 225

Other

23 -115 -73 -19 -2 -17

Carlsberg Group, total

6,969 144 252 59 337 69 268 150 118

5,638 139

1,593 175

323 137

18 -97

7,572 354 -259 30 65 95 -30 75 -105

85 39 35 89 -3 92

7,572 439 -220 65 154 92 62 33 29

* ”Not distributed” includes corporate functions, other undertakings, elimination of inter-company trade in the three geographic segments, etc. of Carlsberg Breweries A/S. ** Carlsberg Breweries A/S, total. *** Included in Carlsberg Breweries A/S is non-recurring gains from the sale of shares in Thai breweries: financials DKK +518m and tax DKK -115m. Total DKK +403m. From these gains, DKK 161m has been allocated for minority interests in Carlsberg A/S, whose share of the profit is thus affected by DKK +242m.

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Appendix 1: Segment Information by Quarters - Q2 DKK million

2001 Net revenue Operating profit Special items, net Financials, net Corporation tax Profit before amortisation and write-down of goodwill Goodwill amortisation and write-down Consolidated profit Minority interests Carlsberg Breweries’ share of profit Carlsberg A/S’ share of profit 2002 Net revenue Operating profit Special items, net Financials, net Corporation tax Profit before amortisation and write-down of goodwill Goodwill amortisation and write-down Consolidated profit Minority interests Carlsberg Breweries’ share of profit Carlsberg A/S’ share of profit

Western Europe

Eastern Europe

Asia

Not distributed*

Beverages total**

7,061 812

1,553 372

453 78

205 -82

9,272 1,180 -213 217 750 68 682 120 562

Other

Carlsberg Group, total

9,272 1,207 -174 240 793 65 728 344

27 39 23 43 -3 46

384 7,379 848

2,230 477

233 104

109 -94

9,951 1,335 -18 -296 408 613 93 520 103 417

9,951 1,367 -18 -227 421 701 91 610 270

32 69 13 88 -2 90

340

* ”Not distributed” includes corporate functions, other undertakings, elimination of inter-company trade in the three geographic segments, etc. of Carlsberg Breweries A/S. ** Carlsberg Breweries A/S, total.

Appendix 1: Segment Information by Quarters - accumulated as at 30 June DKK million

2001*** Net revenue Operating profit Special items, net Financials, net Corporation tax Profit before amortisation and write-down of goodwill Goodwill amortisation and write-down Consolidated profit Minority interests Carlsberg Breweries’ share of profit Carlsberg A/S’ share of profit 2002 Net revenue Operating profit Special items, net Financials, net Corporation tax Profit before amortisation and write-down of goodwill Goodwill amortisation and write-down Consolidated profit Minority interests Carlsberg Breweries’ share of profit Carlsberg A/S’ share of profit

Western Europe

Eastern Europe

Asia

Not distributed*

Beverages total**

12,293 844

2,468 492

983 169

497 -204

16,241 1,301 154 349 1,106 139 967 180 787

Other

Carlsberg Group, total

16,241 1,351 78 299 1,130 134 996 494

50 -76 -50 24 -5 29

502 13,017 987

3,823 652

556 241

127 -191

17,523 1,689 -18 -555 438 678 188 490 178 312

17,523 1,806 -18 -447 486 855 183 672 303

117 108 48 177 -5 182

369

* ”Not distributed” includes corporate functions, other undertakings, elimination of inter-company trade in the three geographic segments, etc. of Carlsberg Breweries A/S. ** Carlsberg Breweries A/S, total. *** Included in Carlsberg Breweries A/S is non-recurring gains from the sale of shares in Thai breweries: financials DKK +518m and tax DKK -115m. Total DKK +403m. From these gains, DKK 161m has been allocated for minority interests in Carlsberg A/S, whose share of the profit is thus affected by DKK +242m.

Appendix 2: Balance Sheet Carlsberg Group

Carlsberg Breweries

DKK million

30.06.02

31.12.01

Changes in percent

30.06.02

31.12.01

Changes in percent

Non-current assets Current assets Capital and reserves Provisions Non-current liabilities Current liabilities Balance sheet, total Net interest-bearing debt

31,345 16,573 17,911 3,839 9,653 16,515 47,918 10,860

31,171 16,284 19,158 3,858 12,124 12,315 47,455 10,918

1 2 -7 0 -20 34 1 -1

29,870 15,733 13,432 3,699 9,653 18,819 45,603 13,865

29,741 15,036 14,839 3,660 12,048 14,230 44,777 13,660

0 5 -9 1 -20 32 2 2

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A tale of three markets Three markets. One brand. Three stages of development. Carlsberg brand status in Poland, Ireland and Turkey. Poland, Ireland and Turkey have widely different cultures and are separated by thousands of kilometres. While the three countries would appear to have little in common, the Carlsberg marketing teams in each country are all working towards the same overall goal: growth of the Carlsberg brand. Poland re-energises Competition is tight in Poland, with over 60 international brands on the market. But that has not stopped Carlsberg Okocim from setting their sights high for the relaunch of Carlsberg beer. Carlsberg was initially launched in Poland in 1997 and local production began two years later. Slow growth prompted the decision to relaunch Carlsberg with an intensive media marketing campaign using the new brand positioning developed by Carlsberg Marketing. Carlsberg will be promoted heavily throughout the summer and autumn in nationwide TV commercials and print ads in Newsweek and several men’s lifestyle magazines. During the World Cup this summer football promotions were used in packaging and point-of-sale materials to coincide with the World Cup. Additionally, special Carlsberg beer gardens have been built in Poland’s largest cities to increase the visibility of the brand and give consumers a meeting place to enjoy ‘Probably the best beer in Poland (and the world).’ Ireland aiming for No. 1 Two new marketing programmes were introduced in Ireland in the past year. As a result, the brand grew in a flat market.

The first programme was set out to re-establish the contemporary values of the brand by employing the successful ‘Carlsberg Don’t do...’ campaign from the UK. It worked well in Ireland too and is described as the most successful campaign to date. Football was an obvious choice for the second programme, given Carlsberg’s international sponsorships and the strength of local passion for the sport. Carlsberg Ireland signed sponsorship deals for the English Premier Leauge and the Irish national team and this summer Carlsberg was running an ‘Carlsberg Don’t do Dreams’ ad which sees Ireland winning the World Cup. Increased marketing spending, which resulted in a nice growth in sales over a six-month period, prompted Carlsberg’s license partner, GuinnessUDV, to double its investment in the Carlsberg brand. A strong start in Turkey In less than one year, Carlsberg has established a solid position in Turkey.

Carlsberg was launched in July 2001 and quickly surpassed its first year target. In spite of being a recently launched beer, consumer research has shown that the personality of Carlsberg is clearly defined. Carlsberg has a clear and consistent brand image in the mind of consumers. Football and music promotions played a big part in the establishing Carlsberg’s image in Turkey. Carlsberg sponsors three football teams in Turkey and is running football campaigns using the international sponsorships of UEFA Cup and Super cup. The ‘Carlsberg Turns on the Music’ concept is being used to spice up the nightlife in Turkish discos, where Carlsberg sponsors events and parties with international DJs. Tuborg has been sold in Turkey since 1967 and has a strong position with approx. a fifth part of the market. Combined now with Carlsberg Beer, the Danish duo poses a big future potential for Carlsberg Breweries in the Turkish market.

Carlsberg Breweries has developed distinct strategies for Carlsberg Beer for the three stages of market growth: Establishing, developing and rejuvenating In markets where Carlsberg has a very strong position. Strategy: Rejuvenate the brand and prevent it from becoming mainstream. Improving the perception of Carlsberg as a premium beer, a cut above the rest, is key to this strategy. Examples: UK and Denmark.

In markets where Carlsberg is establishing, or where it is considered a niche product. Strategy: Establish brand awareness, brand values and make it more accessible. Examples: Romania, Turkey and Switzerland. In developing markets, where the brand has a solid base. Strategy: Invest in developing the brand’s position and expanding premium segment growth. Examples: Sweden, Norway, Israel, and Ireland.

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Financial Calendar 7 November 2002

Q3 Financial Statement 2002

Announcements to the Stock Exchange Announcements to the Copenhagen Stock Exchange A/S 1 January 2002 – 8 August 2002 7 Jan 21 28 29 30 14 14 20 25 1 1 18 16 8 8

Jan Jan Jan Jan Feb Feb Feb Feb March March March April May May

2002 2002 2002 2002 2002 2002 2002 2002 2002 2002 2002 2002 2002 2002 2002

23 May

2002

30 May

2002

28 June

2002

1 July

2002

2 August 2002 8 August 2002 8 August 2002

Carlsberg Breweries increases ownership of Carlsberg Italia to 100% Carlsberg Asia increases shareholding in Hite Brewery, South Korea Baltic Beverages Holding acquires the Voronezh Brewery in Russia Acquisition of shares in Lao Brewery Financial calendar 2002 for Carlsberg A/S Preliminary Profit Statement 2001 Carlsberg Breweries sells Rent A Cooler to Eden Springs New CFO of Carlsberg A/S Carlsberg Asia not obliged to make public offer in Malaysia Statement of objections from the EU-Commission Agenda for the annual general meeting of Carlsberg A/S Annual General Meeting of Carlsberg A/S New accounting policies for Carlsberg A/S Q1 Financial Statement 2002 Baltic Beverages Holding invests USD 50 million in a new brewery in Ukrania Carlsberg Breweries increases its shareholding in Croatian Panonska brewery to 80% Baltic Beverages Holding’s subsidiary Baltica is building a new brewery in the Russian Far East region Carlsberg Breweries acquires 59.4% of Bulgarian brewery Shumensko Carlsberg Breweries’ shareholding in Lithuanian brewery Svyturys Utenos Alus sold to Baltic Beverages Holding Carlsberg Breweries acquires 67% of Bulgarian brewery Pirinsko Repurchase of own shares Q2 Financial Statement 2002

Carlsberg Breweries acquires majority shareholding in Panonska, Croatia Carlsberg Breweries A/S increases its shareholding in the Panonska brewery to 80 per cent by acquiring Podravka Food Industries’ 40 per cent shareholding. The purchasing price is approx. USD 11 million. With this acquisition, Carlsberg Breweries wants to secure greater influence on the future development of the brewery. IØ (Investment Fund for Central and Eastern Europe) owns the remaining 20 per cent of the share capital. Carlsberg’s history in Croatia and its co-operation with Podravka date back to 1971, when an agreement regarding the brewing and marketing of Tuborg beer was entered. In 1995, Carlsberg acquired a 40 per cent shareholding in Panonska. In order to extend the capacity, approx. USD 50 million was invested in 1997 in a modern and efficient brewery, which was built by Danbrew Ltd. A/S – a subsidiary of Carlsberg Breweries. Panonska brewery which produces the beer brands Tuborg, Kaj, PAN and Podravka Pivo has a total output of approx. 400,000 hl beer. The brewery’s turnover is USD 40.3 million and the number of employees 310. The yearly per capita consumption i Croatia is 74 litres and Panonska’s market share is 11 percent.

Development of the Carlsberg B-share compared to the KFX-index and the Peer Group Breweries (Carlsberg B, Heineken, Scottish & Newcastle, SAB and Interbrew) SHARE PRICE INDEX 01.08.2001 (=100) – 31.07.2002

120 110 100 90 80 70 60 01/08/01

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Carlsberg B-share

01/10/01

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01/12/01 KFX-index

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01/02/02

01/04/02

01/06/02

31/07/02

Peer Group Breweries

Carlsberg News is published every three months by Carlsberg A/S in Danish and English and forwarded to registered shareholders. Circulation: 18,500. Editorial staff: Niels Eyde Madsen (responsible), Jeanette Dyekjær, Jeanett W. Glenthøj, Andrew Arnold, Bill Fryman. Photos: Bent Rej, Columbia Pictures et al. Design and production: Boje & Mobeck as. Printed by: PrintDivision A/S. Carlsberg A/S, CVR-NR. 61056416, 1 Valby Langgade, DK-2500 Valby. Phone: +45 3327 2727. E-mail: [email protected]. Homepage: www.carlsberg.com.