33 Letter to the Shareholders ies in 2001, earnings per share totalled DKK 19.5 against DKK 19.1 last year (+2%). Net turnover increased by 34% on last year (12 months) and the growth is mainly attributable to the addition of OrklaGLYPH<213>s beverage activities, the inclusion of the FeldschlGLYPH<154>sschen brewery in Switzerland for the entire financial year (against 1 month in 1999/ 2000), the acquisition of TGLYPH<159>rk Tuborg in Turkey and marked growth in Eastern Europe. In recent years, substantial investments have been made in acquisitions and new production plant. As a result, the net interest-bearing debt has increased and now totals DKK 11bn or ap- prox. 27% of the balance sheet total. The Board of Directors proposes that a divi- dend of DKK 5.00 per DKK 20 share be paid, or 25% of the share capital, against DKK 5.40 per DKK 20 share last year (15 months). DKK 320m (DKK 345m in 1999/00) has been appropriated for that purpose. This is an actual increase of 16% as the dividend last year covered a period of 15 months. The proposed dividend corresponds to 21% of CarlsbergGLYPH<213>s share of profit for the year. It is proposed that the remaining amount of DKK 1,187m be appropriated to the reserves. Carlsberg will continue to strengthen its position as one of the worldGLYPH<213>s large international breweries. The consolidation trend in the industry with the concentration of fewer and larger groups contin- ues, and Carlsberg aims to play an active part in this process in order to capture significant market shares. With the establishment of the subsidiary Carlsberg Breweries A/S, a goal-oriented and strong international brewery and soft drink group with considerable growth potential has been created. Carlsberg Breweries will profile the Carlsberg brand as a leading, international, top- quality brand and will market an extensive port- folio of strong regional and local brands. It remains CarlsbergGLYPH<213>s goal to gain market share in the growth markets in Eastern Europe and Asia to compensate for the stagnating trend in the more traditional markets in Western Europe, while still seeking to expand influence in that re- gion as well. Competition from other international brewery groups is intensifying in the growth mar- kets. Joint ventures in Eastern Europe, Baltic Beverages Holding (BBH) and in Asia, Carlsberg Asia, enjoy strong market positions and strengthen CarlsbergGLYPH<213>s growth potential. For Carlsberg Breweries, 2001 was primarily the year in which OrklaGLYPH<213>s beverage activities were integrated with the Carlsberg activities. In Swe- den, Carlsberg Sverige was established and Pepsi was introduced. Coca-Cola was wholly or partly integrated into the companies in Denmark and Finland, and the brewery in Switzerland launched a restructuring process. At the same time, reduc- tions were made in headquarter staff and organi- sational adjustments were implemented to meet the new challenges. In Eastern Europe, BBH showed substantial, profitable growth, and the acquisition of local breweries continued. Furthermore, Carlsberg Breweries took over the controlling interest in TGLYPH<159>rk Tuborg, Turkey and established the majority owned Polish brewery Carlsberg Okocim through local acquisitions. In Asia, the establishment of the new joint ven- ture Carlsberg Asia has been delayed, primarily due to pending public authority approvals. Western Europe was characterised by a gener- ally stagnating market trend, leading to necessary restructuring projects and cost adjustment. The breweries in all markets showed better perform- ance than expected, except for Sweden, which experienced problems due to a declining market as well as to the cost structure in the new and larger Carlsberg Sverige. The concept of Corporate Governance is currently a topic of discussion in Denmark, primarily follow- ing the recommendations presented by a Danish committee of top business executives in a recent report on the subject. Carlsberg continuously fol- Corporate Governance International structural adjustment and Carlsberg Breweries