Operational highlights • The Group delivered strong perform- ance and achieved market share  growth in all three regions driven by  focused commercial execution and a number of successful innovations. • Our Asian markets continued to grow  while our Western European markets  declined by an estimated 2%. The  Russian market declined by an esti- mated 8% due to outlet restrictions  and slower economic growth.  • Tuborg grew 10% and was the fastest  growing international premium beer  brand in China and the largest pre- mium brand in India.  • The Carlsberg brand grew 6% in the  second half of 2013 in premium markets  (declined 2% for the full year, cycling  last year’s EURO 2012 activations).  • Our international cider brand, Somersby, grew 78%.  • We kept a high level of investments  across markets and functions to  capture the short- and longer-term  earnings growth opportunities. • We strengthened our presence in  Asia, including increased ownership  of Chongqing Brewery Group and  construction of breweries. • We established the Carlsberg Circular  Community to rethink and redevelop  packaging with the aim of reducing  the impact on the environment. 4 Management review THE GROUP AT A GLANCE Carlsberg Group Annual Report 2013 Financial highlights 119.7 66.6 bn 2% 5% 3.0 bn 9.8 bn Solid price/mix of 2%. Organic net revenue  growth of 1%. Pro rata beer volume  of 119.7m hl. Organic operating  profit growth of 5%.  Free operating cash  flow of DKK 3.0bn. Adjusted net profit  growth of 5%. In 2013, we delivered solid earnings growth  despite challenging and uncertain market  conditions and we achieved market share  growth in all three regions. 2013 results EXPECTATIONS AND RESULTS 2013 MAIN ASSUMPTIONS UNDERLYING 2013 EARNINGS EXPECTATIONS Beer market dynamics for all three regions to be similar to 2012. Beer volumes to be impacted by destocking in France and Russia in Q1 and stock  building in Russia in Q4 ahead of the RUB 3 excise tax increase in January 2014. Reported cost of goods sold per hl expected to be flat.  Sales and marketing investments to revenue expected to be at the level of 2012. Costs of rolling out the integrated supply chain and business standardisation project (BSP1) in Western Europe to impact Group profits by DKK 300-400m. Average all-in cost of debt to decline by some 50-75bp. Tax rate expected to be 24-25%. Capital expenditures expected to remain at the level of 2012. Outlook based on an average EUR/RUB exchange rate of 42. Average EUR/RUB exchange rate was 42.2. Capital expenditures were DKK 5.8bn (DKK 5.1bn in 2012)  (assumption updated in November). Tax rate was 24.1%. Average all-in cost of debt declined approximately 100bp. BSP1-related costs were DKK 350m. Sales and marketing investments to revenue were at the level of 2012. Reported cost of goods sold per hl declined slightly. Beer volumes were impacted as anticipated. Russian beer market development was worse than anticipated, declining 8% (assumption adjusted during 2013). Actual February 2013 1  Reported net profit adjusted for special items after tax. Operating profit before special items Carlsberg’s share of adjusted net profit 1 18.02.2013 Actual (Financial Statements for 2012) DKK 9,793m DKK 5,504m 18.02.2013 Financial Statements for 2012 Around DKK 10bn Mid-single-digit percentage increase 19.02.2014 Actual (Financial Statements for 2013) DKK 9,844m 5% (DKK 5,795m)