Porters Five Forces in Beer Market

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Annual Report 2008

Northern & Western Europe
Beer volume 51m hl Net revenue DKK 37.1bn Operating profit DKK 4bn See page 28 for regional performance.

47%
OF TOTAL VOLUME %

Operating profit Share of operating profit*
DKKbn 5 4 3 2 1 0

60 50 40 30 20 10

07

* Before not allocated expenses and other activities (rhs)

20

20

08

Eastern Europe
Operating profit Share of operating profit*
DKKbn 5 4 3 2 1 0 % 50 40 30 20 10 0

43%
OF TOTAL VOLUME

Beer volume 46.8m hl Net revenue DKK 19.1bn Operating profit DKK 4.1bn See page 32 for regional performance.

07

* Before not allocated expenses and other activities (rhs)

20

20

08

Asia
Beer volume 11.5m hl Net revenue DKK 3.6bn Operating profit DKK 511m See page 36 for regional performance.

10%
OF TOTAL VOLUME

Operating profit Share of operating profit*
DKKbn 0.6 0.5 0.4 0.3 0.2 0.1 % 7 6 5 4 3 2

07

* Before not allocated expenses and other activities (rhs)

20

20

08

The world’s fourth largest brewery group
2008 was a year of significant progress and strong results

Beer volume, pro rata (Million hl)

Net revenue (DKKbn)

Operating profit (DKKbn)

Operating margin (%)

EPS (DKK)

120 100 80 60 40 20

70 60 50 40 30 20

10 8 6 4 2 0

15 13 11 9 7 5

25 20 15 10 5 0

08

06

07

06

07

08

06

07

08

06

07

08

06

20

20

20

20

20

20

20

20

20

20

20

20

20

07 20

Organic development

Full bar shows Group total

20

08

Management review

4 12 26 44 54

4 8 10

CEO STATEMENT FIVE-YEAR SUMMARY 2009 EARNINGS EXPECTATIONS

Markets and strategy
14 16 18 20 24 GLOBAL BEER MARKETS MARKET OVERVIEW BRAND PORTFOLIO STRATEGY EXECUTIVE COMMITTEE

Regional performance
28 32 36 40 NORTHERN & WESTERN EUROPE EASTERN EUROPE ASIA EVENTS IN THE MARKETS

Finance and risk
46 52 FINANCIAL REVIEW RISK MANAGEMENT

Corporate matters
56 58 64 CORPORATE RESPONSIBILITY CORPORATE GOVERNANCE SHAREHOLDER INFORMATION

Financial statements

68 169

70 140

CARLSBERG GROUP PARENT COMPANY CARLSBERG A/S

170 171 172

MANAGEMENT STATEMENT AUDITORS’ REPORT BOARD OF DIRECTORS

This report is provided in Danish and in English. In case of any discrepancy between the two versions, the Danish wording shall apply.

4

Management review: CEO statement

A new Carlsberg
2008 was a truly special year and marked a milestone in Carlsberg’s history. The acquisition of Scottish & Newcastle together with Heineken was by far the largest transaction in Carlsberg’s history, immediately increasing Carlsberg’s beer sales by 33% (pro rata). Carlsberg is now a much larger player in the global brewing industry with a strong position as the world’s fourth largest brewer. More importantly, Carlsberg holds a strong position in virtually all of the markets in which we have chosen to compete. THE TRANSFORMATION

In May and June Carlsberg successfully carried out a rights issue. We raised new capital of around DKK 30bn to help finance the Scottish & Newcastle transaction, which amounted to a total of around DKK 57bn. Unfortunately, since the rights issue the share price has been heavily impacted by the global economic recession. Business development 2008 was a year of substantial business integration following the acquisition of assets from Scottish & Newcastle. It was also another year of significant progress and strong results. During the year Carlsberg continued to develop its business in line with its stated strategy, building on its strong brand portfolio and execution skills throughout the Group. Although not immune, the beer category is resilient to economic recession. However, market conditions softened further in the fourth quarter of the year. In Northern & Western Europe, consumer spending declined in both the third and fourth quarters

The acquisition has transformed Carlsberg into a far larger player with new ambitions...
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