PRESENTATION DEBT INVESTORS Carlsberg Group 30 August 2017 2 - - PowerPoint PPT Presentation

Carlsberg Group

PRESENTATION DEBT INVESTORS

30 August 2017

2

CONTENT

Group overview SAIL’22 & Funding the Journey Key financial highlights Group financing & key EURO bond terms Appendix

3

Group

• verview

4

The Carlsberg Group – 2016

5

in Eastern Europe volumes sold in # 1 or 2 markets in seven Asian markets markets with # 1 or 2 positions in Western Europe

24 24 74% No.

• No. 1

No.

• No. 2

No.

• No. 1-2

DKK free cash flow2 DKK net revenue2 DKK market cap1

c.

• c. 108b

108bn 62.6bn 62.6bn 8.6bn 8.6bn

net debt/EBITDA3 DKK net debt3

21.9bn 1.9bn 1.5 1.57x 7x

Three regions –a more balanced portfolio

6

60% 54%

WESTERN EUROPE EASTERN EUROPE ASIA

62% 42% 2%

Share of net revenue (2009 and 2016) Share of operating profit (2009 and 2016) 16%

31%

24%

7%

18%

52%

28%

6% 6%

The Group has a strong portfolio of core beer brands …

7

Share of beer volume Share of beer net revenue

INTERNATIONAL BRANDS LOCAL POWER BRANDS

• Mainstream lager is among the alcohol categories

with the highest market penetration and frequency of consumption

• Represents our largest volume and profit pool

… and attractive craft & speciality brands and alcoholic-free brews

8

Share of beer volume Share of beer net revenue

ALCOHOL-FREE BREWS CRAFT & SPECIALITY

• Craft & speciality and alcohol-free brews are growing rapidly

in many markets

• Craft & speciality driven by consumer desire for premium brands

with varied tastes and beer styles

• Alcohol-free brews driven by the rising interest in healthier choices

SAIL’22 & Funding the Journey

9

Our new strategy – SAIL’22 – was launched in March 2016, guided by our ambition to be … SU SUCCE CESSFUL SFUL

• … by driving sustainable top- and bottom-line growth
• KPIs
• Market share
• Gross profit after logistics %
• Operating profit

PR PROFES OFESSIONAL SIONAL

• … by excelling with our customers in insights, management and service
• KPIs
• Customer satisfaction scores

ATTRA TRACTI TIVE VE

• … by delivering value for our shareholders, employees and society
• KPIs
• Operating profit
• ROIC
• Free cash flow

10

SAIL’22 defines clear priorities with a focus on core and growth opportunities to deliver shareholder value

11

STRENGTHEN THE CORE POSITION FOR GROWTH CREATE A WINNING CULTURE DELIVER VALUE FOR SHAREHOLDERS Leverage our strongholds Excel in execution Funding the Journey Win in growing categories Target big cities Grow in Asia Organic growth in operating profit ROIC improvement Optimal capital allocation Team-based performance Contribute to a better society Compass (applying our codes and policies)

1 In prioritised order

12

SAIL’22 sets clear targets for capital allocation

1. Organic growth in operating profit 2. ROIC improvement 3. Optimal capital allocation1:

1. Invest in to our business to drive long-term value creation

• 2. NIBD/EBITDA < 2.0x
• 3. Dividend pay-out ratio of 50%
• 4. Excess cash to be redistributed through buy-backs and/or

extraordinary dividends

• 5. Deviating from the above only if value-enhancing acquisition
• pportunities arise

SAIL’22 includes an ambitious sustainability strategy with industry-leading targets: Together Towards ZERO

13

• 50% reduction
• n in carbon

bon emission

• ns at our breweries
• 100% electricity from renewab

able sources at our breweries

• Eliminat

ate use of coal at our breweries

• 15% reduction
• n in beer-in

in-han and1 carbon footprint

• 100% low climate impact cooling

ng

• Partner with 30 suppl

pliers to reduce shared carbon footprint

• 25% reduction
• n in water usage at our breweries
• Expl

plor

• re going

g below 2.0hl/hl at all high risk breweries

• Partner to safeguard

guard shared d water resources in high-risk areas

• 100% availab

ability of alcohol

• l free beer (AFB)
• 100% respon
• nsi

sibl ble drinking g messagi ging g through packaging and brand activations

• 100% of our markets run partnersh

ships ps to suppor

• rt respon
• nsi

sibl ble consum umpt ption

• n
• Reduction
• n in accide

dent rate year on year

• 50% reduction
• n in water usage at our

breweries

• Partner to safeguard

guard shared d water resources in high-risk areas

• 100% of our markets improv
• ve on

respon

• nsi

sibl ble drinking g year on year

• Zero accidents
• 0% carbon

bon emissions s at our breweries

• 30% reduction
• n in beer-in-hand carbon

footprint

2030 2022

Status of Funding the Journey and SAIL’22 as at 30 June 2017

14

FUNDING THE JOURNEY

• On track to deliver the expected net benefits of

DKK 1.5-2.0bn by 2018

• A large proportion to be delivered in 2017
• As planned, approx. 50% of the total net benefits will be

reinvested in the priorities of SAIL’22 while the other

• approx. 50% will improve earnings
• Funding the Journey governance structure and processes

being incorporated into daily routines and standard business operations

SAIL’22

• Investment in and execution of SAIL’22 priorities on-going
• Strengthen core business
• Drive future top-line growth
• Craft & speciality growth of +25%
• Alcohol-free beer growth in Western Europe of +13%
• Launch of Together Towards ZERO with industry-leading

ambitions

Funding the Journey was launched in November 2015, targeting net benefits of DKK 1.5-2.0bn by 2018

15

VALUE E MANA NAGEM EMENT ENT SUPPL PLY CHAIN IN EFFICIE ICIENC NCY OPERATING ING EXPENS PENSE EFFICIE ICIENC NCY

• Optimise balance between market share and profits by improving the

mix of brands, channels and promotional activities

• Embedding the right sales and pricing tools across markets
• Price/mix in 2016: 3%
• Efficiency improvements within procurement, production, warehousing

and logistics

• BSP11 an important tool to realise efficiencies
• Complexity reduction
• Net SKU2 reduction by end-2016: 1,200
• Simplification of processes and functions
• Operating cost management
• Outsourcing of shared services
• Total white-collar headcount reduction by end-2016: 2,280

RIGHT HT-SIZ IZING ING OF BUSINE INESSES ES

• Russia: Production restructuring and brand impairment
• China: Impairment of Eastern Assets and local brands in addition to

further network restructuring

• UK: Business restructuring
• Several disposals, such as Danish Malting Group, Carlsberg Malawi,

Carlsberg Uzbekistan, United Romanian Breweries and Nordic Getränke

Elements of Funding the Journey

Key financial highlights

16

GROWING TOP-& BOTTOM-LINE

Net revenue +2% (organic) Operating profit +15% (organic) Net profit +23%

IMPROVING CASH FLOW

Free operating cash flow +37%

REDUCING LEVERAGE

Net debt/EBITDA 1.57x

Strong H1 2017 results – well on track to deliver on key priorities for the year

17

VOLUMES

• rganic pro rata
• 2%

GROSS MARGIN

growth

+110bp

OPERATING PROFIT

• rganic growth

+15%

BALANCING OUR GOLDEN TRIANGLE

A clear target of SAIL’22 is to reduce net debt and financial leverage – H1 2017 results delivered accordingly

18

10.0 15.0 20.0 25.0 30.0 35.0 40.0 0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x H1 2015 FY 2015 H1 2016 FY 2016 H1 2017 DKKbn Net debt/EBITDA Interest-bearing debt, net (rhs)

Continued reduction

• f financial leverage
• In line with SAIL’22 capital

allocation priorities (target: < 2.0x)

• NIBD reduced by DKK 3.7bn

since year-end 2016

• NIBD/EBITDA down to 1.57x

driven by:

• Earnings growth
• Working capital improvement
• Disposals

2017 outlook

2017 FINANCIAL EXPECTATIONS

• Mid-single-digit percentage organic operating

profit growth

• Financial leverage reduction

Other assumptions

• A translation impact on operating profit of around DKK +50m

based on the spot rate on 14 August (previously DKK +300m)

• Financial expenses, excluding currency losses or gains and

fair value adjustments, of around DKK 1bn (previously DKK 1.0-1.1bn)

• Effective tax rate just below 30%.
• Capital expenditures of approximately DKK 4bn

19

Net revenue and operating profit

41.1 44.8 59.9 59.4 60.1 63.6 66.5 66.6 64.5 65.4 62.6 10 20 30 40 50 60 70 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 DKK bn bn

Net reven enue ue

4.046 5.262 7.978 9.390 10.249 9.816 9.793 9.844 9.230 8.457 8.245

2 4 6 8 10 12 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 DKK bn bn

Operat ating ing profit fit

20

Operating and EBITDA margins

0% 5% 10% 15% 20% 25% 30% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Operat ating ing margin gin

Carlsberg Group Western Europe Eastern Europe Asia 0% 5% 10% 15% 20% 25% 30% 35% 40% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EBITD ITDA margin gin

Carlsberg Group Western Europe Eastern Europe Asia

21

Average trade working capital and free cash flow

• 14.0%
• 12.0%
• 10.0%
• 8.0%
• 6.0%
• 4.0%
• 2.0%

0.0% 2.0% 4.0% 2009 2010 2011 2012 2013 2014 2015 2016 H1 2017

Av. . trad ade workin king capita ital/ne /net reven enue ue

10.5 5.2 3.9 5.9 0.1 0.7 7.5 8.6 5.9 2 4 6 8 10 12 2009 2010 2011 2012 2013 2014 2015 2016 H1 2017 DKK bn bn

Free e cash sh flow

22

Group financing & proposed transaction key terms

23

We are committed to investment grade

24

• Long Term Issuer Rating: BBB
• Outlook: Stable
• Date: 21-02-2011

“The affirmation reflects an improvement in Carlsberg's credit metrics to levels more commensurate with a 'BBB' rating due to successful cash preservation measures taken in 2015-2016 leading to 25% gross debt reduction over the period. We expect rating headroom to continue improving over 2017-2019, allowing for some bolt-on M&A activity in a still consolidating industry. Management's focus on improving profitability and strengthening the company's balance sheet under the SAIL'22 strategy it aims to deliver by 2022 should continue to enhance the group's financial flexibility under the current rating. The rating also reflects Carlsberg's strong business profile resulting from its large scale, geographic diversification and strong portfolio of international and local brands, ensuring leading positions in most of its markets.” (11- 05-2017)

• Rating: Baa2
• Outlook: Stable
• Date: 16-11-2016

“Carlsberg's Baa2 long-term ratings are supported by the company's (1) large scale as the world's third-largest brewer, with leading positions in some of its key European and Asian markets, including Russia; (2) increasing geographic diversification; and (3) solid cash flow generation supporting gross debt reduction. The ratings also factor in Carlsberg's (1) significant exposure to Eastern Europe and Russia in particular, where trading conditions remain challenging; (2) weaker margins compared to rated global peers, reflecting a higher exposure to competitive beer markets in Western Europe as well as to different local distribution models; and (3) credit metrics that are currently weak for the rating but are expected to improve over the next 6 to 12 months (i.e. by mid late 2017).” (16-11-2016)

• Rated by Fitch and Moody’s since January 2006

Carlsberg Group financing

25

• Committed to maintaining investment grade credit rating
• Centralised funding and risk management at the level of

Carlsberg Breweries A/S

• Diversified sources of funding and smooth maturity profile
• Ample capital resources available at all times
• EUR 1,000m Bond maturing in Oct 2017 and EUR 750m

Bond maturing in 2019

• EUR 750m Bond maturing in 2022
• EUR 1,000m Bond maturing in 2024
• EUR 2,510m credit facility committed until 2021

3 6 9 12 15 1-2 years 2-3 years 3-4 years 4-5 years > 5 years

Time to maturity non-current borrowings

10 20 30 40 50 2016 2017 2018 2019 2020->

Committed non-current credit facilities and net financial debt

• Comm. credit facilities

Net financial debt*

EUR 750 m 2,625% EUR 750 m 2,625% EUR 1 bn 2,5%

DKK bn bn DKK bn bn * FY 2016 and H1 2017 reported numbers

Continued focus on cash generation and deleveraging

26

Target net interest bearing debt (SAIL’22)

• Net interest bearing debt / operating profit before

depreciation and amortisation < 2.0x

• NIBD/EBITDA at 31 December 2016: 1.96
• NIBD at 31 December 2016: DKK 25,503m
• NIBD at 30 June 2017: DKK 21,852m

Gross financial debt at 31 December 2016 of DKK 30,204m

• 70% of gross financial debt is long term
• 76% of net financial debt at fixed rates
• 61% of gross financial debt is non-current bonds

2.71 2.30 2.39 2.35 2.55 2.74 2.34 1.96 1.57 x 1x 2x 3x 4x 5x

2009 2010 2011 2012 2013 2014 2015 2016 H1'17

NIBD / EBITDA

61% 4% 1% 5% 29%

Gross Financial Debt – Allocation (%)

Non-current issued bonds Non-current bank borrowings Non-current mortgages Current bank borrowings Other current- and non- current borrowings

Funding portfolio to meet Carlsberg’s strategy

27

Committed credit facilities

• Committed credit facilities at 31 December 2016 of

DKK 49,592m

• Credit resources available at 31 December 2016 of DKK 13,464m
• Credit resources available is defined as unutilised non-current

credit facilities and cash & cash equivalent less utilised current credit facilities

Utilisation of funding sources

• Funding portfolio requires rebalancing due to high bond

ratio and little flexible debt:

• No immediate refinancing need
• Reduce bond ratio to achieve flexibility

52% 1% 45% 2%

Committed credit facilities

Bonds Mortgages Bank borrowings Other credit facilities

86% 1% 9% 4%

Utilisation of funding sources

Bonds Mortgages Bank borrowings Other credit facilities

Funding strategy

• Smoothing of maturity profile
• Looking for maturities in gaps
• Increase flexibility and ability to

match liquidity

• Keep part of the funding portfolio

short-term

• Will be open to PPs and reverse

inquiries

• Looking broadly and
• pportunistically at markets and

funding sources

• Smaller and more frequent issues

(than previously)

• EUR 1bn bond maturing in Oct 2017
• Refinancing with a mix of a new

bond issue, cash and/or short term debt

28

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2017 2018 2019 2020 2021 2022 2023 2024

Maturity Profile

Bonds Other borrowings DKKbn

Carlsberg Group ownership structure and proposed transaction key terms

29

Carlsberg Foundation

Carlsberg A/S

Listed on Nasdaq Copenhagen

Carlsberg Breweries A/S

EMTN listed on Luxembourg Stock Exchange

Operating companies

30% of capital 75% of votes 70% of capital 25% of votes 100% ownership

Key ey Eu Euro Bond nd Term erms

Joint Bookrunners Listing Documentation Law Optional Redemption Coupon type Size and currency Tenor Use of Proceeds Status Ratings Issuer Carlsberg Breweries A/S Moody’s: Baa2 (Stable) Fitch: BBB (Stable) Senior unsecured General corporate purposes incl. partial refinancing of EUR 1bn bond maturing in October 6 years EUR 500m Fixed, Annual, Act/Act 3 month Par Call English Law EUR 5 billion EMTN programme, Prospectus dated 8 June 2017 and Prospectus Supplement dated 25 August 2017 Luxembourg Stock Exchange MUFG, Nordea, Societe Generale

Free float

Carlsberg Breweries A/S simplified ownership structure

Change of control

Put option in the event of Change of Control

Other activities1

1 Other activities are primarily R&D and real

estate activities. Refer to slide 31 (appendix)

Appendix

30

Other activities – bridge between Carlsberg Group and Carlsberg Breweries Group

• Other activities in Carlsberg A/S (not consolidated in Carlsberg Breweries Group) are primarily:
• R&D activities
• Real estate activities – Carlsberg A/S holds 25% ownership in Carlsberg Byen, the city development project
• n the former brewery site in Valby

Bridg dge between een Carls lsberg berg Group up and Carls lsberg berg Brewer eweries ies Group1

DKKm CAG Other activities CBG Comments Net revenue 62,614

• 62,614

Operating profi fit 8,245 56 56 8,301 CAS admin. expense: DKK -100m. Profit from associate after tax: DKK +44m, of which the main part is real estate (Carlsberg Byen) Special items 251 12 263 Net financial items

• 1,247

10

• 1,237

Profi fit before tax 7,249 78 78 7,327 Tax

• 2,392
• 10
• 2,402

Profi fit after tax 4,857 68 68 4,925 Free cash flow 8,616 189 8,805 Decrease in other payables in CAS Dividends excl. minorities

• 1,373
• 1,373

Net financial debt 26,702 131 26,833 Intercompany loans from CAS to CBG

31

BALTI TIC STATE TES

Saku Aldaris Svyturys-Utenos Alus

• No. 1-2
• Market share: 26-41%
• Breweries: 3

Western Europe

FINLAND

Sinebrychoff

• No. 2
• Market share: 31%
• Breweries: 1

DENMA MARK

Carlsberg Danmark

• No. 1
• Market share: 54%
• Breweries: 1

GERMA MANY

(Northern)

Carlsberg Deutschland

• No. 1
• Market share: 17%
• Breweries: 2

SWEDEN

Carlsberg Sverige

• No. 1
• Market share: 35%
• Breweries: 1

NORWAY

Ringnes

• No. 1
• Market share: 55%
• Breweries: 2

POLAND

Carlsberg Polska

• No. 3
• Market share: 17%
• Breweries: 3

SWITZ TZERLAND

Feldschlösschen

• No. 1
• Market share: 41%
• Breweries: 1

ITALY

Carlsberg Italia

• No. 4
• Market share: 7%
• Breweries: 1

PORTU TUGAL AL

Unicer

• No. 1
• Market share: 47%
• Breweries: 1

UK UK

Carlsberg UK

• No. 4
• Market share: 12%
• Breweries: 1

SOUTH TH EAST T EUROPE OPE

Carlsberg Serbia Carlsberg Croatia Carlsberg Bulgaria Carlsberg Greece

• No. 2-3
• Market share: 16-27%
• Breweries: 5

FRANCE

Kronenbourg

• No. 2
• Market share: 28%
• Breweries: 1

32

Western Europe – key figures

DKK bn bn 2016 2015 Organic growth Beer volumes (m hl) 48.4 50.2

• 4%

Other beverages (m hl) 16.3 16.2 +2% Total volumes (m hl) 64.7 66.4

• 2%

Net revenue 37.6 38.8

• 1%

Operating profit 5.4 5.3 +3% Operating margin 14.2% 13.7% Nordic countries Poland France UK South East Europe Germany Others, incl. Export & Licence

Pro rata ta beer volumes umes (2016) 6)

33

Western Europe – H1 2017 results highlights

• Organic growth in net revenue of 2%
• Price/mix +1%
• Volume +1%
• Operating profit up organically 14%
• Price/mix improvements from value management
• Funding the Journey benefits, including OCM, reducing operating expenses
• +160bp improvement in operating margin

34

H1 H1 m.hl / / DKKbn bn 2016 Org.

• Acq. Net

Net FX FX 2017 Beer volume 24.2 0% 0% 24.1 Other bev. volume 7.9 +4%

• 5%

7.8 Total bev. volume 32.1 +1%

• 2%

31.9 Net revenue 18.8 +2%

• 2%
• 1%

18.5 Operating profit 2.0 +14% 0% 0% 2.3 Operating margin 10.9% 12.5%

RUSSIA

Baltika

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

BELAR ARUS

Olivaria

• No. 1
• Market share: 29%
• Breweries: 1

UKRAINE

Carlsberg Ukraine

• No. 2
• Market share: 31%
• Breweries: 3

AZERBAIJAN

Baltika-Baku

• No. 1
• Market share: 75%
• Breweries: 1

KAZA ZAKHSTA TAN

Derbes

• No. 2
• Market share: 37%
• Breweries: 1

Eastern Europe

35

Eastern Europe – 2016 key figures

DKK bn bn 2016 2015 Organic growth Beer volumes (m hl) 32.4 32.3 0% Other beverages (m hl) 2.0 1.7 +15% Total volumes (m hl) 34.4 34.0 +1% Net revenue 10.2 10.9 +8% Operating profit 1.8 1.9 +12% Operating margin 18.0% 17.5% Russia Ukraine Others

Pro rata ta beer volumes umes (2016) 6)

36

Eastern Europe – H1 2017 results highlights

• Organic decline in net revenue of 1%
• Price/mix +8%
• Volume -9%, impacted by PET1 downsizing in Russia
• Operating profit up organically 17%
• GPaL growth
• Funding the Journey benefits
• +320bp improvement in operating margin

37

H1 H1 m.hl / / DKKbn bn 2016 Org.

• Acq. Net

Net FX FX 2017 Beer volume 15.9

• 9%

0% 14.5 Other bev. volume 1.0

• 4%

0% 1.0 Total bev. volume 16.9

• 9%

0% 15.5 Net revenue 4.7

• 1%

0% +17% 5.5 Operating profit 0.8 +17%

• 1%

+23% 1.0 Operating margin 15.9% 19.1%

Asia

38

VIETN TNAM

SEAB Hue Brewery Habeco

• No. 4
• Market share: 10%
• Breweries1: 2

CHINA

(Western)

• No. 1
• Market share: 58%
• Breweries: 27

NEPAL

Gorkha Brewery

• No. 1
• Market share: 70%
• Breweries: 1

CAMB MBOD ODIA

Cambrew

• No. 1
• Market share: 45%
• Breweries: 1

LAOS

Lao Brewery Co.

• No. 1
• Market share: 96%
• Breweries: 2

HONG G KONG

Carlsberg Hong Kong Ltd

• No. 2
• Market share: 27%

INDIA

Carlsberg India

• No. 3
• Market share: 17%
• Breweries: 7

MALAY AYSI SIA

Carlsberg Brewery Malaysia Berhad

• No. 2
• Market share: 37%
• Breweries: 1

SINGAP GAPOR ORE

Carlsberg Singapore

• No. 2
• Market share: 21%

SRI LANKA

Lion Brewery Ceylon

• No. 1
• Breweries: 1
• 1Excl. Habeco

MYAN ANMAR AR

Carlsberg Myanmar

• No. 4
• Market share: 3%
• Breweries: 1

Asia – 2016 key figures

DKK bn bn 2016 2015 Organic growth Beer volumes (m hl) 36.1 37.8

• 3%

Other beverages (m hl) 3.6 3.6 +9% Total volumes (m hl) 39.7 41.4

• 2%

Net revenue 14.7 15.3 +4% Operating profit 2.8 2.8 +6% Operating margin 19.1% 18.2% China Vietnam India Laos Others

Pro rata ta beer volumes umes (2016) 6)

39

Asia – H1 2017 results highlights

• Organic growth in net revenue of 6%
• Price/mix +5%
• Volumes flat
• Operating profit up organically 12%
• Gross margin improvement from value price/mix and supply chain savings
• Good operating cost management
• +200bp improvement in operating margin

40

H1 H1 m.hl / / DKKbn bn 2016 Org.

• Acq. Net

Net FX FX 2017 Beer volume 19.0

• 1%
• 4%

18.1 Other bev. volume 2.0 +12%

• 16%

1.9 Total bev. volume 21.0 0%

• 5%

20.0 Net revenue 7.6 +6%

• 5%

0% 7.7 Operating profit 1.3 +12% 0% +1% 1.5 Operating margin 17.4% 19.4%

Dividend per share and pay-out ratio

4.8 4.8 3.5 3.5 5.0 5.5 6.0 8.0 9.0 9.0 10.0 0% 7% 14% 21% 28% 35% 42% 2 4 6 8 10 12 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 DKK

Divid iden end/sh share re and pay-out

• ut ratio

io

Dividend/share Pay-out ratio (rhs)

41

Disclaimer

Forward-looking statements This presentation contains forward-looking statements, including statements about the Group’s sales, revenues, earnings, spending, margins, cash flow, inventory, products, actions, plans, strategies, objectives and guidance with respect to the Group's future

• perating results. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or

imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "intend", "plan", "project", "will be", "will continue", "will result", "could", "may", "might", or any variations of such words or other words with similar meanings. Any such statements are subject to risks and uncertainties that could cause the Group's actual results to differ materially from the results discussed in such forward-looking statements. Prospective information is based on management’s then current expectations or forecasts. Such information is subject to the risk that such expectations or forecasts, or the assumptions underlying such expectations or forecasts, may change. The Group assumes no obligation to update any such forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements. Some important risk factors that could cause the Group's actual results to differ materially from those expressed in its forward- looking statements include, but are not limited to: economic and political uncertainty (including interest rates and exchange rates), financial and regulatory developments, demand for the Group's products, increasing industry consolidation, competition from other breweries, the availability and pricing of raw materials and packaging materials, cost of energy, production and distribution related issues, information technology failures, breach or unexpected termination of contracts, price reductions resulting from market driven price reductions, market acceptance of new products, changes in consumer preferences, launches of rival products, stipulation of market value in the opening balance sheet of acquired entities, litigation, environmental issues and other unforeseen

• factors. New risk factors can arise, and it may not be possible for management to predict all such risk factors, nor to assess the

impact of all such risk factors on the Group's business or the extent to which any individual risk factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Accordingly, forward-looking statements should not be relied on as a prediction of actual results.

42