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2Carlsberg 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
3Major 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
4CB has 65 of its volume in top 1 or 2 positions
5Key Figures 2001
Sales Volume
Total 6.8 bill. litres
17
40
43
6Carlsberg 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
7Strategic 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
8GLOBAL BRAND
LOCAL BRANDS
9Status 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)
-
10Change in Volume 2001 2002
Hite included in Carlsberg Asia from 2002
Excl. Feldschlösschen
11Profit 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
12Carlsberg Brand is delivering a healthy growth
trend
13CB 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
14The 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
15How 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.
16How 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
17For Carlsberg European integration means that we
need to focus on
- Extracting synergies
- Back office costs
- Plant economy
- Purchasing
Common culture Brand building
18Shaping 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
19Mission
Carlsberg Breweries is a dynamic,
international provider of beer and beverage
brands, bringing people together and improving
quality in life.
20Vision
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.
21GLOBAL EVENTS
to grow our business brand
22World Championships St. Moritz 2003 World Cup
Races