Report and Accounts 1999 / 2000 - Carlsberg Group

12
Report for 1999/2000
Malaysia: Earnings in Carlsberg Brewery Malaysia
Berhad remain high and Carlsberg increased its
shareholding in the listed company to 50%.
China: Earnings in the Chinese brewery operations,
which include breweries in Shanghai and
Guangdong, and headquarters and a sales
subsidiary in Hong Kong, experienced intensified
pressure. In addition, brewery capacity has been
too high and it was decided to sell 75% of the
brewery in Shanghai to China Tsingtao Brewery
Co. Ltd. (Tsingtao), which is the leading brewery
enterprise in China.
Export: Carlsberg’s export and licence activities
registered progress.
Asia: On 15 December 2000, an agreement was
concluded with Asian Chang Beverage Company
regarding the establishment of Carlsberg Asia Ltd.
The management team of the 50/50 joint venture
will be from Carlsberg and will administrate and
develop the marketing and brewing activities of
the two companies in Asia. The agreement takes
effect as from 1 January 2001 and it is expected
to strengthen Carlsberg’s position in the Asian
markets considerably.
CCNB: The Coca-Cola Nordic Beverages group
(CCNB), which handles production and sale of
Coca-Cola products in Denmark, Sweden,
Norway, Iceland and Finland achieved a positive
trend in sales as well as earnings. In connection
with the agreement with Orkla ASA, the Swedish
and Norwegian competition authorities have
required that Carlsberg cease bottling, sale and
distribution of either Pepsi or Coca-Cola in the
Swedish and Norwegian markets. Carlsberg will
thus give up the Coca-Cola companies in Sweden
and Norway as from 1 January 2001, whereas the
Coca-Cola activities in Denmark and Finland will
continue as 100%-owned Carlsberg Breweries
operations. The company in Iceland will be sold.
Royal Scandinavia: On 22 December 2000,
Carlsberg announced a reduction in its shareholding
in Royal Scandinavia A/S (from about 65% to
28%). A new-established company, RS Holding
Frederiksberg a.s., in which Carlsberg holds 28%,
will be the new owner of Royal Scandinavia. The
results of Royal Scandinavia are fully consolidated
for the full financial year 1999/2000. No profit will
be realised from the sale. As from 31 December
2000, the company will be included as an associated
company. The cash flow impact from the sale
will be included in the accounts for the year 2001.
Pro forma financial highlights
of Carlsberg Breweries
Carlsberg Breweries A/S was established on 1
July 2000, when Carlsberg A/S contributed all
brewery related activities to the company. Orkla
ASA’s beverage activities will be included in the
accounts as from 1 January 2001.
The unaudited, pro forma financial highlights for
the calendar year 2000 set out below have been
prepared in order to illustrate the size, results and
balance sheet of Carlsberg Breweries A/S.
The pro forma accounting figures are based on
- and are the sum total of – audited accounting
figures of Orkla’s beverage activities during the
calendar year 2000 and unaudited interim statements
for the calendar year 2000 of Carlsberg’s
beer activities.
SOLVENCY RATIO (%) RETURN ON EQUITY (%)
99/00
98/99
97/98
96/97
95/96
99/00
98/99
97/98
96/97
95/96
0 5 10 15 20 25 30 35 40 45
0 5 10 15 20