Carlsberg A/S — Earnings Release 2011

Aug 17, 2011

Russian market performance below expectations, the rest of the Group on-track

• The Carlsberg Group achieved 5% beer volume growth, net revenue growth of
8% while operating profit declined by 5% for the first six months of 2011 due
to the Russian market performing below expectations in Q2. The Asian and
Northern & Western European regions developed positively, in line with
expectations.

• Despite an improved Russian macro economic environment, the Russian beer
market declined by approximately 1% for the first six months (-2% in Q2). Over
the past 18 months, consumer prices on beer have been increased by an average
of 30% reflecting the duty increase. Russian consumers have not yet fully
adjusted to these substantially higher price levels resulting in an extended
period of declining consumption delaying the overall recovery of the Russian
beer market. Furthermore, unfavourable weather conditions during the second
quarter also impacted consumption negatively.

• The Group's Q2 Russian market share grew 20bp vs Q1 and reached 38.4%
(source: Nielsen Retail Audit, Urban Russia). Volume share was up in the
mainstream, premium and super premium segments and notwithstanding some share
contraction in the large economy segment our value share increased by 50bp in
the same period underpinning the objective to grow both volume and value market
share. As a result of our price leadership in the industry, particularly over
the past 18 months, as well as our deliberate focus on the higher value
segments, our overall year-on year volume share declined. We intend maintaining
our balanced approach to volume and value however we will selectively increase
our emphasis on the economy segment.

• In April, the Group launched a new global positioning of the Carlsberg
brand with the aim to capture the brand's full potential over the coming years.
The new positioning has been well received and whilst still early in the
process the initial brand performance indicators are encouraging.

• The beer markets in Northern & Western Europe grew slightly for the first
six months. In Asia most beer markets reflected growth of mid- to high
single-digit percentages. In Eastern Europe, the Ukrainian market continued to
grow. In each of these geographies, we gained market share.

• The Group's beer volumes grew by 5% to 58.3m hl with 4% organic growth
with large variations between regions. Northern & Western European volumes grew
organically by 1% and Eastern Europe by 5%. Asia continued its strong growth
and delivered 10% organic beer volume growth. Adjusting for the Russian
destocking in Q1 2010, Group organic beer volume growth was an estimated 1%.
Group organic beer volumes were flat in Q2.

• Net revenue increased by 8% to DKK 31.3bn (DKK 28.9bn in 2010). Organic
growth was 8%. Q2 net revenue grew by 4% to DKK 18.7bn (DKK 18.0bn in 2010).
Organic growth was 6%.

• Price/mix increased by 4% with positive contribution from all regions.
Simultaneously marketing investments also increased as per our plans as the
Group embarked on several commercial initiatives across markets to support the
Group's ambitions of growing both volume and value market shares.

• Operating profit was DKK 4,698m (DKK 4,966m in 2010) representing a 5%
organic decline. Q2 operating profit was DKK 3,695m (DKK 4,239m in 2010).
Organic decline was 11%. As expected, operating profit was impacted by higher
input costs and sales and marketing investments across the Group. Eastern
European operating profits were further impacted by higher logistics costs and
the Russian market development being below expectations. The Asian and Northern
& Western European regions delivered good organic operating profit growth in
both Q1 and Q2.

• Net profit was DKK 2,228m compared to DKK 2,705m in 2010 (adjusted for
the DKK 390m non-cash, non-taxable income in Q1 2010).

• The negative impact on volume from last year's unprecedented consumer
price increases has been more persistent than anticipated and exacerbated by
the poor weather in Russia in Q2. It is anticipated that the recently
introduced regulatory changes will also have a marginal impact on the overall
market development in Russia during the second half of this year. Consequently,
the Group is now forecasting a low single-digit decline in the Russian market
for 2011 (against previous growth expectation of 2-4%). As a result of this,
the Carlsberg Group has revised its 2011 earnings expectations:

• Operating profit before special items is now expected to be around DKK
10bn compared to DKK 10.25bn in 2010 (previous expectation of high single digit
percentage growth).

• Adjusted net profit growth is now expected to be 5-10% (previous
expectation of more than 20%[1]).

Commenting on the results, CEO Jørgen Buhl Rasmussen says: “Q2 performance in
Russia has been below expectations. The recovery in the beer category is taking
longer than we anticipated as the Russian consumer adapts to the exceptional
price increases of around 30% undertaken during the last 18 months. This
impacts negatively our Russian 2011 profits and is the driver behind our
revised 2011 outlook. However, with the adjustments we're making to our local
portfolio, channel approach and forward pricing strategy, I'm confident that
our Russian business will return to growth. At the same time, I'm pleased with
the performance of the rest of the Group. In the first six months we have
continued our relentless focus on driving efficiencies as well as long-term
sales value growth.”

Carlsberg will present the financial statements at a conference call for
analysts and investors today at 9.00 am CET (8.00 am GMT). The conference call
will refer to a slide deck, which will be available beforehand at
www.carlsberggroup.com.
Contacts:
Investor Relations: Peter Kondrup, +45 3327 1221
Media Relations: Jens Bekke, +45 3327 1412
Ben Morton, +45 3327 1417

[1]Reported 2010 adjusted for the DKK 598m non-cash, non-taxable income in
special items related to a new acquisition accounting regulation.

Read the full announcement on attachment or on www.carlsberggroup.com.