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Carlsberg Breweries

• One of the largest brewing groups in the world
• Produces beer, soft drinks and mineral water in
  over 40 countries
• Sales in over 140 markets
• 28,000 employees worldwide
• Produced nearly 7.9 billion litres of beer in
  2002
• Owns an extensive portfolio including one of the
  worlds most international beer brands - Carlsberg

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Major Brewery Groups of the World
1. Anheuser-Busch USA 146 2.
SABMiller UK 112 3. Heineken Netherlands 1
05 4. Interbrew Belgium 87 5.
Ambev Brazil 74 6. Carlsberg
Breweries Denmark 68 7. Scottish
Newcastle UK 59 8. Kirin/Lion Nathan
Japan/NZ 39 9. Modelo Mexico
38 10. Asahi Japan 34
Million hl beer 2001
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CB has 65 of its volume in top 1 or 2 positions
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Key Figures 2001
Sales Volume
Total 6.8 bill. litres
17
40
43
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Carlsberg Breweries Rationale

• Gain leadership in Nordic area
• Orkla and Carlsberg A/S in need of critical mass
• Orkla got a world brand
• Carlsberg got a broader distribution base and
• regional brands

• Joined forces to achieve
• Growth
• Earnings and cash flow improvements
• Stronger and more skilled organisation

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Strategic Priorities

• Focus on Beer
• Participate in the consolidation of the beer
  industry
• Achieve market leadership
• Concentrate on Western Europe, Eastern Europe and
  Asia
• Increase ownership in core breweries
• Conduct clear branding strategy
• - Carlsberg leading international brand
• - Regional brands e.g. Tuborg
• - National brands e.g. Aldaris, Tetley, Baltika
  and Ringnes

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GLOBAL BRAND
LOCAL BRANDS
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Status first 23 months

• Merger implemented 15th February 2001
• Feldschlösschen take over and turn around 2001
• Pepsi and Coca-Cola agreements in place in May
  2001
• Turkey and Poland acquisition in July 2001
• New headquarter organisation in November 2001
• Vena and Svyturys sold to BBH 2002
• Sale Rent a Cooler
• Acquisitions 2002
• - Hite
• - Carlsberg Italia
• - Beer Lao
• - Panonska
• - Shumensko Pivo
• - Pirinsko Pivo
• - Voronezh (BBH)

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Change in Volume 2001 2002
1 Jan 30 Sep 1 Jan 30 Sep 1 Jan 30 Sep
Million HL 2002 2002 2001 2001 2000 Change
Beer Beer
Western Europe Western Europe 20.2 19.7 3 27.2 25.3 8
Central and Eastern Europe Central and Eastern Europe 29.2 22.9 28 29.4 23.0 28
Carlsberg Asia Carlsberg Asia 11.0 8.1 35 11.3 10.5 7
Total Total 60.5 50.8 19 67.9 58.8 15
Soft drinks, water and others Soft drinks, water and others
Total Total 16.3 16.3 0 20.3 16.5 23
Hite included in Carlsberg Asia from 2002
Excl. Feldschlösschen
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Profit Loss
1 Jan 31Dec Change
1 Jan 30 Sep Change
2001
DKK million
2000
2002
2001
20
34,419
Net turnover
28,574
26,922
25,699
5
27
2,971
EBITA
2,343
3,122
2,651
18
0,4p.p.
8,6
8,2
11,6
10,3
1,3p.p.
EBITA-margin
Pro forma, excl. Feldschlösschen, Asia based
on former Carlsberg structure
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Carlsberg Brand is delivering a healthy growth
trend
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CB is creating value
Implied value creation
Development in EBITDA-margin Percent
Total return to shareholders 1/6- 2000
15/1-2003 Percent
Carlsberg A/S
Heineken
Interbrew
SABMiller
CB
SN
Heineken
Interbrew
Broker estimates Includes
dividends and share price developments
Listed 30/11 2000 Source Broker reports
Datastream
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The Way Ahead 2003 and beyond
Meeting or exceeding 2003 expectations -
Improving underperforming companies - Stronger
control of investments in all companies -
Implement group initiative Continue to look for
profitable growth opportunities - Organic -
Acquisitions and investments in growth markets
(Asia Eastern Europe) - Long term profitable
acquisitions in mature markets (Western
Europe) Shaping the company of the future - Our
vision - Our values - Building our star brand
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How is Europe impacting the brewing industry?
Simpler access to larger markets - Currency
and trade barriers - Political risk and
infrastructure improvements - Globalisation of
customers Increasing price competition
Currency, customers, packaging and taxation
Beer is very local - On premise - Traditions
and consumers - Cost of transportation/low
value - Branding and distribution investments

• Need to optimise internal structures and
  consolidation will be inevitable.
• A leader in a small country may be small
  compared to a no. 3 in a
• neighbouring country.

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How is the EU-expansion changing Europe?

• Lots of thirsty consumers but little GNP
• Good for Carlsberg but less impact for others
• Reduced political, but increased commercial risks
  for FMCG companies with interests in the new
  member countries
• Geographical center and growth potential moving
  east

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For Carlsberg European integration means that we
need to focus on

• Extracting synergies
• Back office costs
• Plant economy
• Purchasing

Common culture Brand building
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Shaping the company of the futureGroup Culture
Project
Mission Vision Values and attitudes The Must
Win Battles
Company Culture creates value through People,
Energy and Co-operation
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Mission
Carlsberg Breweries is a dynamic,
international provider of beer and beverage
brands, bringing people together and improving
quality in life.
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Vision
Our brands will be the consumers first choice,
and we will lead our industry in profitability
and growth through a culture of quality,
innovation and continous improvement.
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GLOBAL EVENTS
to grow our business brand
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World Championships St. Moritz 2003 World Cup
Races