Annual Report 2015

March 1, 2016 at 9:28 PM EST

Supporting Materials:

Annual Report 2015 11.2 MB

COMPANY ANNOUNCEMENT NO 9/2016 - 1 MARCH 2016

Annual Report 2015

Solid market positions and Hartwall integration resulted in the best performance ever

• Earnings were positively affected by higher efficiency, targeted value management of products and strengthening of customer partnerships

• The Hartwall integration plan has been followed, and significant changes have been made to simplify and optimise the company

• Overall, Royal Unibrew's market shares increased in 2015

• In spite of poorer summer weather in Northern Europe than in 2014, sales showed a 1% increase and net revenue was at the 2014 level

• EBITDA increased by DKK 95 million (DKK 45 million adjusted for restructuring costs of DKK 50 million in 2014)

• EBIT margin showed a 1.6 percentage point increase (0.7 percentage point adjusted for restructuring costs in 2014) to 15.2%

• Free cash flow amounted to DKK 1,032 million

• DKK 666 million was distributed to the shareholders in 2015

• The Board of Directors proposes a distribution of dividend of DKK 7.2 per share, corresponding to a total of DKK 400 million

• It has been decided to launch as soon as possible a share buy-back programme of DKK 450 million

"2015 was a good year for Royal Unibrew. We improved our earnings and cash flow, and also reinforced our market positions. At the same time, we have made considerable headway with the Hartwall integration. Following a year of dividend pause in 2014 and a significant debt reduction, Royal Unibrew again has satisfactory financial and strategic flexibility. Therefore, as planned, we resumed dividend distribution and share buy-backs in 2015. We also increased our medium-term EBIT margin target from 14% to 15%. The good performance is due to our regional beverage strategy with local closeness to our consumers combined with strong customer relations as well as committed and competent employees throughout our organisation. We have great focus on innovation and on meeting customer and consumer demand. In 2015 we launched organic and new craft beer products in several markets, including the organic beer ROYAL Økologisk as well as Schiøtz and Lottrup in Denmark," says Henrik Brandt, CEO.

Selected Financial Highlights and Ratios	Q1-Q4		Q4
MDKK	2015	2014	2015	2014
Sales (thousand hectolitres)	9,1	8,974	2,236	2,053
Net revenue	6,032	6,056	1,423	1,351
EBITDA	1,225	1,13	223	198
EBITDA-margin (%)	20.3	18.7	15.7	14.7
Earnings before interest and tax (EBIT)	917	826	143	113
EBIT-margin (%)	15.2	13.6	10.1	8.5
Profit before tax	902	801	147	105
Net profit for the year	711	624	123	85
Free cash flow	1,032	824	239	52

	Q4 2015	Q4 2014	Q4 2013	Q2 2013
Net interesting-bearing debt	1,184	1,553	2,379	440
NIBD/EBITDA (current 12 months)	1.0	1.4	2.3*	0.7
Equity ratio (%)	43	40	31	42

* calculated proforma with Hartwalls's realised full-year EBITDA

Outlook for 2016
	Outlook	Actual	Actual
MDKK	2016	2015	2014
Net revenue	6,150-6,400	6,032	6,056
EBITDA	1,190-1,290	1,225	1,13
EBIT	885-985	917	826

The Annual Report has been published via Nasdaq Copenhagen A/S and is enclosed with this announcement.

The Annual Report is also available on www.royalunibrew.com

For further information on this announcement:

Henrik Brandt, CEO, tel +45 56 77 15 13

It will be possible for investors and analysts to follow Royal Unibrew's presentation of the Annual Report on Wednesday, 2 March 2016, at 9 am by audiocast at one of the following dial-in numbers:

Denmark: +45 32 71 16 60

United Kingdom: +44 (0)20 3427 1908

United States: +1 646 254 3367

The presentation may also be followed at Royal Unibrew's website www.royalunibrew.com.

Annual Report 2015

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