Carlsberg Group

2017 Company Presentation

Agenda

1. Heritage
2. Performance
3. Our brands
4. Our strategy - SAIL’22
5. Research
6. Economic contribution
7. Sustainability
8. Executive Committee & Supervisory Board

2
Agenda

1. Heritage
2. Performance
3. Our brands
4. Our strategy - SAIL’22
5. Research
6. Economic contribution
7. Sustainability
8. Executive Committee & Supervisory Board

3
Carlsberg was founded in 1847 on a passion for
beer, science and art

1847 JC Jacobsen
founded the Carlsberg
Brewery on a hill outside of
Copenhagen

1868 Carlsberg has

international ambitions and
exports its first barrel of JC Jacobsen had great ambitions for his brewery and to
beer to Scotland make sure his beer is brewed to the highest scientific
standards he established the Carlsberg Laboratory.

1882 JC’s son Carl

Jacobsen builds his brewery
next to his father’s and calls
it ”New Carlsberg”.

1904 The iconic Carlsberg

logo is designed by architect
Thorvald Bindesbøll. It is still Carl Jacobsen had a great passion for art and architecture
used today. and created many spectacular buildings for his brewery.
One is the Elephant Gate welcoming visitors to his brewery

4
The Carlsberg Foundation - a passion for perfection

J.C. Jacobsen established the Carlsberg Foundation in 1876 to govern the

brewery and invest future profits into scientific research.

Carlsberg Foundation
– One of the world’s oldest
commercial foundations

– Still controlling shareholder of

Carlsberg Group

– The Foundation helps ensure that

the brewery is run with focus on
research, innovation and high-
quality products 1

– At the same time it is the

Foundation’s task to contribute to
society by supporting science,
scholarship, art and culture 5
The journey to becoming an international
company begins

In 1990 Carlsberg was an

international beer brand but
mainly through export and
licensed brewing

MALAWI

OPERATIONS IN
Denmark, UK and Malawi.
Minority ownerships in Finland,
Italy and Malaysia

6
The Carlsberg Group today

Top 4
International brewer, no 1
in Eastern Europe and no 2
in Western Europe

120.3 140 47,000

Million hectoliters of beer Beer brands Employees in 2015
sold in 2015 (1 hectoliter =
7
100 liter)
Agenda

1. Heritage
2. Performance
3. Our brands
4. Our strategy - SAIL’22
5. Research
6. Economic contribution
7. Sustainability
8. Executive Committee & Supervisory Board

8
Performance at a glance

Sales volume pro rata (million hectolitres) 2014 2015

Beer 122.8 120.3

Other beverages 21.0 21.5

Income Statement (DKK million) 2014 2015

Net revenue 64,506 65,354

Operating profit before special items 9,230 8,457

Shareholders in Carlsberg A/S, adjusted1 5,496 4,557

1 Adjusted for special items after tax.

9
Our three regions at a glance

Western Europe Eastern Europe Asia

2015
% of total
beer volume 42 27 31

2015

% of EBIT
55 17 28

10
Full year result ended 31 December 2014
 Western Europe
NORWAY
Ringnes
• No. 1
• Market share: 55% FRANCE
• Breweries: 2 Kronenbourg
SWEDEN • No. 1
Carlsberg Sverige FINLAND • Market share: 29%
• No. 1 Sinebrychoff • Breweries: 1
• Market share: 34% • No. 1
• Breweries: 1 • Market share: 47%
• Breweries: 1
POLAND
Carlsberg Polska
• No. 3
• Market share: 19%
• Breweries: 3

SWITZERLAND
UK Feldschlösschen
• No. 1
BALTIC STATES
Carlsberg UK Saku
• No. 4 • Market share: 42%
Aldaris
• Market share: 14% • Breweries: 1
Svyturys-Utenos Alus
• Breweries: 1 • No. 1-2
• Market share: 26-42%
• Breweries: 3

DENMARK
Carlsberg Danmark
• No. 1
• Market share: 55%
• Breweries: 1

ITALY
Carlsberg Italia
GERMANY SOUTH EAST EUROPE
• No. 4
(Northern) Carlsberg Serbia
• Market share: 7%
PORTUGAL Carlsberg Deutschland Carlsberg Croatia
• Breweries: 1
Unicer • No. 1 Carlsberg Bulgaria
• No. 1 • Market share: 16% Carlsberg Greece
• Market share: 47% • Breweries: 2 • No. 2-3
• Breweries: 1 • Market share: 16-27%
• Breweries: 5

11
Eastern Europe

RUSSIA
Baltika
• No. 1
• Market share: 35%
• Breweries: 8

KAZAKHSTAN
Derbes
• No. 2
• Market share: 27%
• Breweries: 1
UKRAINE
Carlsberg Ukraine
• No. 2
• Market share: 30%
• Breweries: 3

AZERBAIJAN
Baltika-Baku
BELARUS • No. 1
Olivaria • Market share: 75%
• No. 1 • Breweries: 1
• Market share: 29%
• Breweries: 1

12
Asia

HONG KONG
Carlsberg Hong Kong Ltd VIETNAM
• No. 2 SEAB
• Market share: 26% Hue Brewery
Habeco
Vung Tau
• No. 4 LAOS
• Market share: 9% Lao Brewery Co.
CHINA • Breweries1: 3 • No. 1
(Western) • Market share: 97%
• No. 1 • Breweries: 2
• Market share: ~55%
• Breweries: 37

NEPAL CAMBODIA
Gorkha Brewery
Cambrew
• No. 1
• No. 1
• Market share: 70%
• Market share: 63%
INDIA • Breweries: 1
• Breweries: 1
Carlsberg India
• No. 3
• Market share: 15%
• Breweries: 7

SRI LANKA
Lion Brewery Ceylon
• No. 1
• Breweries: 1

MALAWI MALAYSIA
Carlsberg Malawi Carlsberg Brewery
• No. 1 Malaysia Berhad
• Breweries: 1 • No. 2
• Market share: 38%
• Breweries: 1

MYANMAR
Carlsberg Myanmar
• No. 4 SINGAPORE
• Breweries: 1 Carlsberg Singapore
1Excl. Habeco • No. 2
• Market share: 20% 13
Carlsberg Group owns 4 of the top-10 beer brands
in Europe

Top 10 Beer Brands in Europe

2015* (million hectolitres)

1 Heineken 13.6

2 Baltika 10.4

3 Carlsberg 7.2

4 Amstel 6.9

5 Tuborg 6.2

6 Mahou 6.2

7 Efes 6.0

8 Carling 6.0

9 Kronenbourg + 1664 6.0

10 Foster’s 5.8

Source: *Canadean, May 13, 2016. Europe as in Canadean definition. 14

Agenda

1. Heritage
2. Performance
3. Our brands
4. Our strategy - SAIL’22
5. Research
6. Economic contribution
7. Sustainability
8. Executive Committee & Supervisory Board

15
We’re a Group of close to 140 master brands

16
Our international brands

Kronenbourg 1664
The world-famous French beer
and long-standing favourite of
beer connoisseurs. Sold in
more than 65 markets, the
brand grew by 5% in 2015.
Tuborg
Grimbergen
Tuborg is a success story of a
Our super-premium Belgian
brand. It is connected with
abbey ale dating back to 1128.
young adults’ exploration of life
The geographic expansion of
has close ties to music. It is
the brand is ongoing, currently
available in more than 70
sold in 38 markets. In 2015, it
markets and grew by 15%
grew by 15%.
in 2015.

Carlsberg
Carlsberg is our flagship
brand, dating back to 1847. It
is available in more than 150
markets across the world. The
brand proposition is “Probably
the best …”

17
Carlsberg - Probably the best beer in the world

TRULY INTERNATIONAL
Born in Copenhagen 1847 and now
available in more than 150 markets
around the world

“PROBABLY THE BEST BEER…”

Whatever we strive to do we do
better. Above all, we do beer. So
Carlsberg is the best beer in the
world (….Probably)

PIONEERING BREWING
A unique heritage and proud history
of pioneering the beer industry

ICONIC BRAND
World famous for our superior
quality beer and a distinct premium
brand image.
Official beer of UEFA EURO,
Liverpool FC…and FC København
18
Tuborg – Open for more

MUSIC IS IN TUBORG’S DNA

Sponsor of music festivals all
over Europe

EXPORTED TO MORE
THAN 70 COUNTRIES
And available since 1880

DENMARK’S LEADING
BEER BRAND
And continuing to grow
internationally – especially
in Asia

19
 Kronenbourg 1664

A SIP OF FRANCE
1664 is born in France where pleasure is an “art
de vivre”
The Strisselspalt, a unique, flavored, subtle
hop, called « the caviar of the hop », gives her
its unique taste … à la française !

EXPORTED TO MORE THAN 60 COUNTRIES

and still expanding…

VERY DYNAMIC: the most dynamic beer in

France (SOM= +0,7pts), overseas (exlid ex UK:
volume =+6%)

SUCCESSFUL EXTENSIONS
which offer refined refreshment or savouring
liquids

20
Baltika – Our best selling beer brand
EUROPE’S BIGGEST BEER BRAND
and exported to more than 75
different countries

№1 BRAND IN RUSSIA
Baltika was the first beer brand, that
was launched on Russian market in
1992. Now it has 98% of Brand
Awareness.

THE BALTIKA FAMILY

is known by numbers, each different
– №0 is non-alcoholic, №3 is the big
selling mainstream variant while №7
is the premium export beer and №9 is
the strong lager. There are also
premium Baltika varieties - the wheat
№8, the porter №6 and the original
dark №4. Furthermore, the range
includes non-pasteurized Baltika
Draught, crispy and refreshing Baltika
Cooler and stylish Neon Beer. 21
Somersby – The world’s number 1 contributor to
ciders growth

THE WORLD’S #1
CONTRIBUTOR TO CIDERS
GROWTH

A RAPID GEOGRAPHICAL
EXPANSION
Available in 50 markets

SINCE
March 2008

10 FLAVOURS
Apple, Pear, Blackberry,
Blueberry, Cranberry, Peach,
Citrus, Ginger, Rhubarb,
Elderflower lime…
22
Grimbergen

SAVOUR A BEER OF LEGEND

An authentic Belgian Abbey
Beer, born in 1128

DISTRIBUTED IN 36
COUNTRIES
and still expanding…

THE FASTEST GROWING

BELGIAN ABBEY BEER
Growing 3x faster than the
competition

ARDET NEC CONSUMITUR

“Burned, but never destroyed”
The motto of the Abbey with
its legendary symbol - the
Phoenix
23
Kronenbourg 1664 Blanc - A sip of French art of
pleasure

Kronenbourg 1664 Blanc is THE modern

white beer thanks to its unexpected liquid
(freshness of a white beer with a touch of
citrus ) and its electric blue bottle

This is a very dynamic brand, sold in more

than 40 countries

+20% in France

+49% in Asia

+49% overseas (ExLiD)

24
Craft & Specialty innovations in 2015

Brewmasters Collection is a new

range of accessible craft beers
Brewmasters launched in Denmark, Finland, Russia
Collection and Ukraine
Available on both draught and in cans
and bottles
New variants developed and launched
in 2015, and more to follow

A number of crafty line extensions

on local power brands is now
Koff APA successfully being launched in several
markets
Koff American Pale Ale (APA) is a great
example of this type of innovation. It
has been very well received in the
Finnish beer market, and is a modern
pale ale brewed and dry hopped with
the aroma hops Citra and Mosaic
25
Non-Alcoholic Beer innovations in 2015

Tourtel Twist was launched in

France in 2015 with the ambition to Tourtel Twist
establish itself as THE non alcoholic
drink for Adults when they want fun
refreshment without alcohol
Best Beer innovation for the past 10
years in FRANCE
More Markets to Follow

Carlsberg Nordic is a range of

great Tasting Non Alcoholic Beers
launched in Denmark in 2014 and
successfully turned around the Non- Carlsberg Nordic
Alcoholic Beer category perception in
the country
Thanks to a Great Tasting Range and
an occasion based campaign
reminding us that there are
moments in life, that just don´t
taste the same without a beer
26
Beer is core – but we are looking at adjacent
categories
Leveraging production and distribution capacities

BREWED BEVERAGES
CIDERS

SOFT

BEER DRINKS

85%
of total
volume 2015
WATER ENERGY DRINKS

OTHERS 15%of total

volume 2015
27
Agenda

1. Heritage
2. Performance
3. Our brands
4. Our strategy - SAIL’22
5. Research
6. Economic contribution
7. Sustainability
8. Executive Committee & Supervisory Board

28
Running a business is like sailing a boat

SAILS
STRATEGIC CHOICES TRENDS
We make choices and set
the right sails to move in
the right direction

CREW
CAPABILITIES, BEHAVIOURS,
ETHICS & PURPOSE AMBITION
We work together as a
unified and dedicated
team to reach our goals

29
Our strategic thrusts will ensure focus

STRENGTHEN
#1 & #2 POSITIONS

POSITION FOR
GROWTH

EXCEL IN
EXECUTION

CREATE A
WINNING CULTURE

31
We will focus on team-based performance

We are one team, …and have common

with one common goal… behaviours to guide us

ALIGNMENT
Proactively seek alignment

ACCOUNTABILITY
Take accountability to achieve our
common objectives

ACTION
Take focused action

33
Agenda

1. Heritage
2. Performance
3. Our brands
4. Our strategy - SAIL’22
5. Research
6. Economic contribution
7. Sustainability
8. Executive Committee & Supervisory Board

32
Carlsberg Research Laboratory

Scientific focus within four core areas

RAW MATERIALS YEAST AND FERMENTATION

Science and breeding of cereal raw Science and breeding of the

materials for brewing, with the focus on microorganisms for brewing, with the
improving malting barley varieties focus on improving yeast strains

INGREDIENTS BREWING TECHNOLOGY

Science in new ingredients incl. hops and Science in

other natural substances and their use in improved and more efficient brewing
beverages processes and technologies 33
The Laboratory celebrates 140 years in 2016
by rebrewing the very first quality lager

34
36
Agenda

1. Heritage
2. Performance
3. Our brands
4. Our strategy - SAIL’22
5. Research
6. Economic contribution
7. Sustainability
8. Executive Committee & Supervisory Board

35
Carlsberg makes a significant contribution to
employment, GDP and government revenues

TOTAL TAX CONTRIBUTION

In 2015, the Group’s

total tax contribution
comprising both taxes
borne including excise
duties, and taxes
collected, amounted to
DKK 38.6bn.

36
Agenda

1. Heritage
2. Performance
3. Our brands
4. Our strategy - SAIL’22
5. Research
6. Economic contribution
7. Sustainability
8. Executive Committee & Supervisory Board

37
Our sustainability strategy continues to be
focused around three key themes

FOCUSING ON THREE KEY THEMES

Resources & Health & People &

Environment Well-being Policies

FOR IMPLEMENTATION IN OUR VALUE CHAIN

40
Learn more at www.carlsberggroup.com/sustainability
Highlights of our progress to optimise resource
efficiency

39
Our sustainability partnerships drive innovation

Our partnership platform – The Carlsberg The Green Fiber Bottle Project
Circular Community • Working in partnership to develop a bio
• We collaborate with partners to based and biodegradable bottle made
from responsibly sourced fibers to
• eliminate the concept of waste
• increase our packaging portfolio
• improve the sustainability
credentials of our products • offer consumers more choice,
within sustainable packaging
• by using the Cradle-to-Cradle design
framework when developing and • The bottle must of course live up to our
marketing new products high quality standards and ensure
excellent consumer experience every
time!

Cradle-to-Cradle logo is registered trademark of McDonough Braungart Design

Chemistry LLC. Use here is limited to cases where Carlsberg is co-operating with EPEA 40
We work to create a culture of responsible drinking

Promoting Preventing underage Marketing our

moderate drinking and drink products
consumption driving responsibly

43
Love Beer - Beer is a natural and modern product,
which can be part of a balanced and healthy lifestyle.

• Love Beer aims to position beer

as cool and contemporary with
females as lead target group

• Focus on present beer as a

natural product thereby
improving the image of the
category.

• First pan-European campaign by

the beer industry, driven by the
Brewers of Europe.

42
Agenda

1. Heritage
2. Performance
3. Our brands
4. Our strategy - SAIL’22
5. Research
6. Economic contribution
7. Sustainability
8. Executive Committee & Supervisory Board

43
Executive Committee

CEES 'T HART HEINE DALSGAARD

President & CEO CFO
Since 2015 Since 2016

MICHIEL J. HERKEMIJ JACEK PASTUSZKA CHRISTOPTHER WARMOTH

Executive Vice President Executive Vice President Executive Vice President, Corporate
Western Europe Eastern Europe Strategy
Since 2016 Since 2015 Since June 2016

PETER ERNSTING CLAUDIA SCHLOSSBERGER Graham Fewkes

Executive Vice President Executive Vice President Executive Vice President
Group Supply Chain Group Human Resources Asia 46
Since 2011 Since 2012 Since June 2016
Supervisory Board

FLEMMING BESENBACHER LARS REBIEN SØRENSEN LARS STEMMERIK KEES VAN DER GRAAF NINA SMITH
Chairman Deputy Chairman

RICHARD BURROWS CARL BACHE DONNA M. CORDNER SØREN-PETER FUCHS ELISABETH FLEURIOT
OLESEN

HANS ANDERSEN ERIK LUND EVA VILSTRUP DECKER PETER PETERSEN FINN LOK

45