Annual Results 2008

February 26, 2009 at 12:00 AM EST
Company Announcement No 02/2009
26 February 2009


In 2008 Royal Unibrew saw a net revenue increase of 8% as well as increased
market shares in most key markets. In spite of this, the Group was affected by
the globally declining economic growth, which par-ticularly showed impact in
H2. At the same time, the acquired business units in Poland did not develop as
expected, which resulted in a requirement for recognising material impairment
losses on the Polish activi-ties as well as a requirement for refinancing the
Company's debts, which has been accomplished. Due to these circumstances,
revenue and operating profit did not develop satisfactorily in 2008. Management
has assessed that the basis of the "double up" strategy no longer exists, and
it has been decided to change the strategy and priorities with a view to
creating a basis of significant earnings improvement and continued
strengthening of the Group's strategic brands. 

“My first months as CEO of Royal Unibrew proved to me that there are material
strong points on which to build. Our products and key brands are doing really
well and are our platform for the future. Having said that, I acknowledge that
2008 was a very challenging year to Royal Unibrew, and our challenges grew in
H2. Key elements of our ambitious ”double up” strategy were put under pressure,
and we were unable to reach the targets set. The effects of the financial
crisis aggravated our problems, and an evident need arose for firmly addressing
the challenges facing use. That is what we are doing now by focusing on a
number of structural and operational adjustments and on reducing the level of
our debts. Our objective now is to strengthen profitability, and we are
implementing a number of important measures to reorganise our Polish
activities, further streamline the Danish organisation and consolidate
activities in the Baltic region,” says Henrik Brandt, CEO. 

HIGHLIGHTS
•	Net revenue in 2008 amounted to DKK 4,178 million corresponding to an 8%
increase over 2007 (or-ganic growth of some 3%), which reflects continued
increased markets shares in most key markets. In H2, beer and soft drinks
consumption declined in key markets due to the accelerating global eco-nomic
crisis. 
•	Operating profit before special items amounted to DKK 135 million (2007: DKK
244 million). The ne-gative profit development is attributable to H2 reflecting
the declining economic growth. 
•	Special expenses relating to the closure of the Aarhus brewery, the Danish
distribution reorganisation and the changes in Group Management affect results
for 2008 negatively by some DKK 50 million (compared to a net income of some
DKK 20 million in 2007). 
•	Profit before tax and impairment of the assets in Poland but after special
expenses amounted to DKK 2 million (2007: DKK 220 million), which is in
accordance with the expectations expressed in the In-terim Report for 1 January
- 30 September 2008 of 20 November 2008. 


•	In continuation of Management's decision to change the strategy for the
Polish market, impairment losses of DKK 455 million have been recognised on the
assets in Poland. 
•	The total loss after impairment and provision for tax of DKK 30 million
amounted to DKK 483 million in 2008 (2007: a profit of DKK 155 million). 
•	Total net interest-bearing debt at the end of 2008 amounted to DKK 2,192
million. After year end, the total bank debt has been refinanced and there will
be launched a process with a view to ensuring a more appropriate capital
structure. 
•	It is proposed that no dividend be distributed for 2008. 
•	The "double up" strategy is replaced by a number of strategic main priorities
focusing on structural and operational adjustments. 
•	Based on a general uncertainty concerning the economic development, possible
changed consumption habits and difficult financial conditions it is expected
that the net revenue in 2009 will show a minor decline compared to 2008.   EBIT
(before ”special expenses” and impairment) is expected to improve compared to
2008. 


For further information on this Announcement:
Henrik Brandt, CEO, tel +45 5677 1513



Investors and analysts may follow Royal Unibrew's presentation of the financial
statements today at 10:30 by webcast. Please register at Royal Unibrew's
website www.royalunibrew.com. 


The Announcement has been prepared in Danish and English. In case of
discrepancy, the Danish version shall prevail. 

This Company Announcement consists of 28 pages



The primary activities of Royal Unibrew are to market, sell, distribute and
produce quality beverages focusing on bran-ded products primarily within beer,
malt and soft drinks. The Group's products are sold in approx. 65 markets with
spe-cial focus on Northern Europe (the Nordic countries, the Baltic countries,
Northern Germany and Poland), Italy, Canada and the international malt drinks
markets (the Caribbean, Africa and the UK). Royal Unibrew comprises the Albani
and Faxe breweries in Denmark, Kalnapilis in Lithuania, Livu Alus and the soft
drinks producer SIA Cido Grupa in Latvia, Brok, Strzelec and Browar Lomza in
Poland as well as Antigua Brewery, Dominica Brewery and St. Vincent in the
Car-ibbean. To read more, visit www.royalunibrew.com. 





 


CONTENTS			
						
Page
Highlights			1 
Financial Highlights and Key Ratios			4 
Management's Review			5 
Financial Calendar			17 
Company Announcements			18
Management's Statement on the Report			19 
Financial Statements			
	Income Statement			20 
	Assets			21 
	Liabilities and Equity			22 
	Statement of Changes in Equity			23 
	Cash Flow Statement			27 
						
Definitions of Key Figures and Ratios			28
					






 
FINANCIAL HIGHLIGHTS AND KEY RATIOS
	2008	2007	2006	2005	2004
SALES (million hectolitres)	7.5 	7.1 	6.4 	5.8 	4.8 
					
FINANCIAL HIGHLIGHTS (mDKK)					
Income Statement					
Net revenue	4,178.7	3,881.8	3,439.0	3,191.0	2,869.0
Operating profit before special items	134.9	244.1	347.7	302.7	307.1
Special items, net	(50.1)	20.2	(14.3)	5.0	0.0
Impairment losses	(385.0)	0.0	0.0	0.0	0.0
Profit/loss before financial income and
ex-penses	(300.2)	264.3	333.4	307.7	307.1 
Impairment of investments	(70.1)	0.0	0.0	0.0	0.0
Other financials, net	(82.7)	(44.1)	(13.0)	(25.6)	(36.8)
Profit/loss before tax	(453.0)	220.2	320.4	282.1	270.3
Consolidated profit/loss	(483.2)	155.2	230.3	220.6	194.9
Royal Unibrew A/S' share of profit/loss	(484.3)	151.7	227.6	221.1	194.1
Balance Sheet					
Total assets	4,051.4	3,781.3	3,413.6	3,187.8	2,530.8
Equity	574.8	1,119.5	1,148.1	1,149.8	1,080.4
Net interest-bearing debt	2,191.9	1,586.1	1,047.8	1,007.3	693.5
Free cash flow	(356.2)	157.0	206.0	252.2	232.7
Per share					
Royal Unibrew A/S' share of earnings per share (DKK)	(89.0)	26.4	38.0	35.4	30.6
Royal Unibrew A/S' diluted share of earnings per share
(DKK)	(89.0)	26.2	37.6	35.4	30.6 
Cash flow per share (DKK)	19.0	26.3	70.9	61.2	64.5
Diluted cash flow per share (DKK)	19.0	26.1	70.2	61.2	64.5
Dividend per share (DKK)	0.0	10.0	10.0	10.0	9.0
Closing price per share (DKK)	118.5	534.0	740.0	532.0	377.0
Employees					
Average number of employees	2.755	2.659	2.278	2.202	1.628
Key figures (mDKK)					
EBITDA	254.6	392.5	535.9	493.2	495.1
EBIT	(300.2)	264.3	333.4	307.7	307.1
Key ratios (%)					
Return on invested capital (ROIC)	3.1	7.4	12.1	11.7	11.8
Profit margin	3.2	6.3	10.1	9.5	10.7
EBIT margin	(7.2)	6.8	9.7	9.6	10.7
Free cash flow as a percentage of net revenue	(8.5)	4.0	6.0	7.9	8.1
Net interest-bearing debt/EBITDA	8.6	4.0	2.0	2.0	1.4
Equity ratio	14.2	29.6	33.6	36.1	42.7
Debt ratio	381.3	141.7	88.7	85.1	64.2
Asset turnover	1.0	1.0	1.0	1.0	1.1
Return on net assets	3.8	8.0	12.9	12.1	13.5
Return on equity after tax	(57.0)	13.7	20.0	19.8	18.7
Dividend rate	0.0	38.9	27.2	28.8	29.5
The key ratios have been calculated in accordance with the “Recommendations and
Financial Ratios 2005” of the Danish Society of Financial Analysts. 
 
MANAGEMENT'S REVIEW

NEW STRATEGIC MAIN PRIORITIES
2008 was a very challenging year to Royal Unibrew, and both internal and
external challenges grew in H2. Results were particularly affected by a
requirement for recognising impairment losses in Poland. The devel-opments
necessitated reassessment of Royal Unibrew's overall strategy. 

The main challenge in 2008 was the development in Poland. In recent years,
focus has been on growth and investments, and Royal Unibrew has acquired three
regional breweries and a major shareholding in a fourth regional brewery. These
investments were made based on an expectation that Royal Unibrew would be able
to develop and strengthen the companies with the relating brands and reap
synergies, thus creating increased earnings in a continuously growing beer
market. The established strategy did not yield the expected results due to
inadequate growth and a product mix that has not been optimal. 

Moreover, in consequence of the international financial crisis, market
conditions deteriorated, which led to a decline in beer and soft drinks demand
in H2. 

These circumstances necessitated considerable changes by the Company. Against
this background, at the end of September 2008, the Supervisory Board announced
the withdrawal of Poul Møller as CEO and the ap-pointment of his successor,
Henrik Brandt, who is to chart and follow a new course for Royal Unibrew. 

As announced in the Interim Report for Q3 2008, the new Group Management has
now reviewed the "double up" strategy. The structural and operational
assumptions of the strategy as well as the current market condi-tions make the
overall basis of growth in revenue and results under ”double up” unrealistic.
In light of this,  Royal Unibrew will no longer report on progress measured
against the ”double up” strategy and the initia-tives defined in this strategy. 

The "double up" strategy is replaced by a number of strategic main priorities
focusing on necessary structural and operational adjustments. The objective is
material earnings improvement as well as more efficient capi-talisation on the
Company's market positions. 

The main priorities are as follows:

•	In Poland sales and marketing efforts will be concentrated. The production
structure will be adapted by closing the brewery in Koszalin. Production will
be transferred primarily to the brewery in Lomza, which is Royal Unibrew's
largest and most efficient brewery in Poland. At the same time, the activity at
the head office in Warsaw will be reviewed. These material changes to Royal
Unibrew's strategy in Poland result in an adjustment of future earnings
expectations. On this basis, it has been considered necessary to recognise
impairment losses on the Polish activities of DKK 455 million. These value
ad-justments, which have no cash flow effect, affect the income statement and
equity negatively in 2008. The changes in Poland are expected to make redundant
some 100 full-time employees. 

•	In Denmark, Royal Unibrew is, as planned, completing a major change of the
production platform and the distribution system. These activities, which are
expected to be completed in April 2009, will provide Royal Unibrew's Danish
business with a more competitive and profitable base. In order to further
simplify and enhance the efficiency of the business, a broad structural and
organisational ad-justment is now launched. This is expected to result in a
reduction of the number of employees in staff and administrative functions by
some 100 full-time employees. 


•	In order to strengthen the already strong market positions in the Baltic
countries, joint operating man-agement will be established. The combination
will enable improved resource utilisation within prod-uct development,
production, logistics and administration while maintaining strong local market
presence. 

•	With a view to boosting the Group's cash flow, 2009 will have special focus
on optimising the Group's working capital and investments. At the same time, a
process will be launched to ensure a more ap-propriate capital structure. 

Management expects these measures to strengthen the Company. With the recently
realised investments in new, competitive types of packaging, a more efficient
distribution and production structure as well as in-creased sales and marketing
efforts directed at strategic brands, the Company's overall competitiveness is
expected to be enhanced. 

RESULTS 2008
Royal Unibrew's net revenue amounted to DKK 4.2 billion in 2008, a 7.6%
increase over 2007. Operating profit before special items amounted to DKK 135
million or DKK 109 million below the 2007 figure. The consoli-dated loss (after
tax) amounted to DKK 483 million (2007: a profit of DKK 155 million). 

Except for impairment losses on the Polish activities, the Company's results
are in accordance with the latest expectations announced for 2008, see Interim
Report for the period 1 January - 30 September 2008 of 20 No-vember 2008. 

Total group sales in 2008 aggregated 7.5 million hectolitres of beer, malt and
soft drinks, corresponding to a 5.4% increase over 2007, of which some 5
percentage points are attributable to the acquisition of Polish, Caribbean and
Latvian activities not included in all of 2007. 

Beer and malt drinks sales aggregated 5.3 million hectolitres in 2007,
corresponding to an approximate increase of 9% over 2007, whereas soft drinks
sales (including mineral water and fruit juices, etc) were at the 2007 level,
some 2.2 million hectolitres. 

Net revenue increased by 7.6% amounting to DKK 4.2 billion. Organic growth
represented some 3 percentage points, whereas some 4 percentage points related
to acquisitions. 

The organic growth is the result of positive growth in H1, whereas growth in H2
and in particular Q4 was negative and affected by the economic decline, which
set off a general consumption reduction in markets that are key to Royal
Unibrew. Royal Unibrew strengthened its market position by increasing or
maintaining its market shares. 

Developments in sales and revenue in the market areas were as follows:

Developments 2007-2008	Western Europe
(including misc. revenue)	Eastern Europe	Malt and Over-seas Markets *)	Royal
Unibrew total 
	Growth	Total	Growth	Total	Growth	Total	Growth	Total
Sales (thousand hectolitres)	-1.5%	3,707	14.9%	3,158	4.8%	593	5.4%	7,458
Share of sales		50%		42%		8%		100%
Net revenue (mDKK)	1.9%	2,537	24.2%	1,129	6.2%	513	7.6%	4,179
Share of net revenue		61%		27%		12%		100%


Gross profit for the year amounting to DKK 1.7 billion was at the level of the
gross profit for 2007. The gross margin was 41.8% and thus 3.3 percentage
points lower than in 2007. The gross margin reduction is partly due to
inability to compensate for higher raw materials prices by customer price
increases in declining markets, partly to a shift in sales towards products and
markets with lower realisable values. Both gross profit and gross margin were
positively affected by the increased productivity at the Danish breweries as
compared to 2007. 

Operating profit before special items amounted to DKK 135 million in 2008, or
DKK 109 million below the 2007 figure. The development is primarily due to a 9%
increase in sales and distribution expenses over 2007, of which 2% is
attributable to acquisitions. This increase in expenses was primarily related
to increased sales and marketing expenses (some DKK 80 million) to strengthen
market shares for the Group's strategic brands, which has now been achieved in
all key markets. Administrative expenses were reduced by 10%, including an
organic reduction of 15 percentage points - primarily due to the resource
adjustment implemented in 2007. 

Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted
to DKK 255 million compared to DKK 393 million in 2007. 

”Special items” amounting to an expense of some DKK 50 million comprise
expenses of DKK 84 million relating to the closure of the breweries in Aarhus
and Maribo, change of the Danish distribution structure and of Group Management
as well as income due to lower required impairment losses on brewery assets
from the Aarhus and Maribo breweries than assessed in 2007. 

”Impairment losses” of DKK 455 million relate partly to impairment of
intangible assets and property, plant and equipment related to the Group's
Polish subsidiary, Royal Unibrew Polska, of DKK 385 million, partly impairment
of DKK 70 million of the value of investments in the Polish company Perla
Browary Lubelskie, see the following section ”Impairment losses”. 

Income from investments in associates decreased by DKK 5 million from 2007
amounting to DKK 23 million compared to DKK 28 million in 2007. The Norwegian
Hansa Borg Bryggerier saw considerably improved results. The investments in
Banjul Breweries were sold in 2007, and, as of mid 2007, St. Vincent Breweries
has been recognised in the consolidated financial statements as a subsidiary,
which, combined with lower earnings by Solomon Breweries, has reduced income
from associates as compared to 2007. 

The Group's net interest expenses increased by DKK 33 million to DKK 105
million due to the increase in net interest-bearing debt of some DKK 600
million. 

The loss before tax of the Royal Unibrew Group for 2008 amounted to DKK 453
million compared to DKK 220 million in 2007. 

Consolidated loss (after tax) amounted to DKK 483 million, a decrease by DKK
638 million from the profit of DKK 155 million in 2008. 

The effective tax rate is materially affected by the impairment losses and the
considerable loss of the Polish subsidiary not affecting the tax expense. 

IMPAIRMENT LOSSES
Due to the established strategy for Poland not having produced the expected
results and to the market decline, it has been necessary to reassess the value
of the underlying activities. The reassessment disclosed material impairment of
the value of intangible assets, property, plant and equipment as well as
financial assets. In connection with preparing the Annual Report for 2008,
Management has made an estimate of the value of the assets leading to
recognition at 31 December 2008 of an impairment loss on intangible assets of
DKK 261 million, and on property, plant and equipment of the Group's Polish
subsidiary of DKK 124 million, a total of DKK 385 million. Moreover, the value
of the investments in the Polish company Perla Browary Lubelskie has been
adjusted downwards by DKK 70 million. 

DEVELOPMENTS IN INDIVIDUAL MARKET SEGMENTS
Financial highlights of the Group's activities broken down on market segments
were as follows in 2008: 

	Western Europe	Eastern Europe	Malt and Overseas Markets
 *)	Unallocated	Group
Sales (million hectolitres)	3.7	3.2	0.6	-	7.5
Share of sales	50%	42%	8%		100%
Net revenue (mDKK)	2,537	1,129	513	-	4,179
Share of net revenue	61%	27%	12%		100%
Operating profit/loss
(before special items) (mDKK)	
185	
-51	
51	
-50	
135
Profit margin	7.3%	-4.5%	10.0%		3.2%
EBIT (excluding impairment losses) (mDKK) 	
137	
-52	
50	
-50	
85
EBIT margin	5.4%	-4.6%	9.6%		2.0%
Assets (mDKK)	2,466	1,203	382	-	4,051
Liabilities (mDKK)	971	406	106	1,994	3,477

Western Europe

Western Europe	2008	2007	% change
Sales (million hectolitres)	3.7	3.8	-2
Net revenue (mDKK)	2,537	2,490	2
Operating profit
(before special items) (mDKK)	
185	
252	
-28
Profit margin (%)	7.3	10.2	
EBIT (mDKK)	137	161	-14
EBIT margin (%)	5.4	6.4	

The Western Europe segment comprises the markets for beer and soft drinks in
Denmark and the Nordic countries as well as in Germany, Italy and France.
Western Europe accounts for 50% of total sales and 61% of net revenue. 

Royal Unibrew's activities in the Western European markets developed positively
in H1 2008 with increases in both sales and revenue. In Q3 and more
significantly in Q4, general economic conditions in the region resulted in
consumer and customer reluctance. The declining market also resulted in
increased price competition. In spite of this development, Royal Unibrew saw a
2% revenue increase in 2008, whereas sales were reduced by 2% from 2007.
Supported by increased marketing efforts, Royal Unibrew succeeded in winning
market shares in all key markets in Western Europe. 

Net selling price increases only partly compensated for the higher raw
materials prices, and sales in 2008 shifted towards markets where the selling
price per product unit is lower than the Western European average. These
circumstances as well as the increased marketing efforts affected operating
profit negatively, whereas the figure was positively affected by the adjustment
of staff resources at the end of 2007 and by the higher production efficiency
at the Danish breweries. Overall, the operating profit before special items
realised in Western Europe is DKK 67 million below that of 2007, and profit
margin has been reduced from 10.2% to 7.3% of net revenue. ”Special expenses”
amounted to DKK 48 million in 2008 compared to DKK 91 million in 2007, after
which EBIT in 2008 amounted to DKK 137 million compared to DKK 161 million in
2007. In 2008 ”special expenses” comprised expenses relating to the closure of
the brewery in Aarhus as well as changes to the Danish distribution structure
and to Group Management. Moreover, the required impairment losses on the
brewery activities of the closed breweries in Maribo and Aarhus turned out to
be lower than those recognised in the financial statements for 2007, which has
reduced ”special expenses”. 

Western Europe	Actual 2008	Growth over 2007
	Net revenue
(mDKK)	Sales
(thousand 
hectolitres)	Net revenue (%)	Sales (%)
Denmark	1,276	1,714	2	-4
Italy	657	463	-9	-15
Germany	484	1,236	22	11
Nordic countries	44	117	-12	-25
Other markets 	76	177	6	6
Total Western Europe	2,537	3,707	2	-2

In Denmark Royal Unibrew won market shares both on branded beer and on soft
drinks. Revenue increased by 2%, whereas total demand was declining. The
increase in market shares is, among other things, attribut-able to several
successful campaigns. 

The Royal brand increased its market share to more than 10% in the branded beer
market. Ceres, Albani and Thor maintained their shares, whereas Heineken's
market share went up. 

Royal Unibrew's brands in the soft drinks segment hold a market share slightly
below 30%. The market shares of both Pepsi, Faxe Kondi and Egekilde have been
increasing. Egekilde now holds a market share of more than 30%. The increasing
soft drinks market shares are substantially due to the introduction of new PET
con-tainers. 

In Italy total beer sales were declining, primarily due to the weather in Q2
and a general economic decline, which especially affected consumption in the
HoReCa segment negatively. Royal Unibrew's revenue in Italy declined by 9% in
2008. Ceres won market shares in both the HoReCa and the retail segment. As an
element in Royal Unibrew's strategy of expanding the market for Ceres Strong
Ale, several line extensions were launched during the year.  Results in Italy
were negatively affected by a significant reduction in customers' inventories
towards the end of the year. 

In Germany (including cross-border trade) net revenue increased by 22% as sales
of branded beer, particu-larly the Royal brand, as well as Egekilde went up. 

 
Eastern Europe

Eastern Europe	2008	2007	 % change
Sales (million hectolitres)	3.2	2.7	15
Net revenue (mDKK)	1,129	909	24
Operating loss
(before special items) (mDKK)	-51	-23	-118
Profit margin (%)	-4.5	-2.6	
EBIT (excluding impairment losses) (m DKK)	-52	88	-156
EBIT margin (%)	-4.6	9.7	

The Eastern Europe segment comprises the markets for beer, fruit juices and
soft drinks in Latvia, Lithuania and Poland. Eastern Europe accounts for 42% of
total sales and 27% of net revenue. 

Sales and revenue in Eastern Europe went up by 15% and 24%, respectively, in
2008. Organic growth (exclud-ing the acquisition effect from the acquisition of
the Polish brewery Lomza at 1 May 2007 and of the Latvian brewery Livu Alus at
1 January 2008) was 5% and 12%, respectively, in 2008. 

The segment showed a significantly higher operating loss in 2008 than in 2007.
The primary reason is that the established strategy for the Polish marked did
not produce the expected results. The Polish companies did not meet the
expectations for organic growth and product mix. Poland realised a highly
unsatisfactory and mate-rial operating loss, which more than offsets the
profits realised in Lithuania and Latvia. The decrease in EBIT (before
impairment losses) is furthermore related to ”special income and expenses”,
which in 2007 repre-sented a net income of DKK 111 million comprising a profit
on the sale of a brewery property in Vilnius and impairment losses on
production assets due to the closure of the breweries in Vilnius in Lithuania
and Liel-varde in Latvia. 

EBIT in Eastern Europe, including the recognised impairment losses of DKK 385
million on the values of in-tangible assets and property, plant and equipment
related to the Polish activities, was a negative DKK 437 million in 2008. 

Eastern Europe	Actual 2008	Growth over 2007
	Net revenue
(mDKK)	Sales
(thousand hec-tolitres)	Net revenue (%)	Sales (%)
Lithuania	397	918	24	16
Latvia	365	1,186	10	4
Poland	354	1,028	46	31
Other markets	13	26	-17	-22
Total Eastern Europe	1,129	3,158	24	15

In Lithuania Kalnapilio-Tauro Grupe increased its market shares on both beer
and fruit juices in 2008, and total revenue increased by 24%. The Kalnapilis
brand developed satisfactorily with an increasing market share - eg due to the
launch of a new high-profile bottle for the entire Kalnapilis range. At the
same time, a new 1.5-litre PET Kalnapilis was launched, which increased the
market share in the PET segment. Tauras also increased its market share.
Kalnapilis and Tauras are the two fastest growing brands in Lithuania and
com-bined the two brands now represent some 25% of beer sales. In spite of a
declining market for fruit juices, both the Cido fruit juice and the Cido
nectar products won market shares. 

In Latvia revenue went up by 10% in 2008. The Livu brand was relaunched with
new formulas, design and marketing, which resulted in an increasing market
share measured by value. Lacplesis also increased its mar-ket share measured by
value as well as volumes due to a positive development in can sales. The fruit
juice market is declining due to the unfavourable economic conditions in
Latvia. The Latvian market is seeing in-tensified competition, but Cido has
managed to maintain its market share measured by both value and vol-umes
remaining Latvia's leading fruit juice brand. Cido XL was relaunched in a new
design, which was suc-cessful. The launch of the Mangali near-water products in
2008 was successful and contributed towards in-creasing the Mangali brand
market share significantly. 

In early 2008, Royal Unibrew acquired Livu Alus, the number 3 Latvian brewery
business in terms of size, and the brewery has been fully integrated with the
Group's existing brewery activities in Latvia. The produc-tion of Lacplesis at
the Lielvarde brewery has been transferred to the Livu brewery, and
simultaneously the Lielvarde brewery was closed. 

In Poland the Group invested significantly in executing the marketing and sales
strategy for regional brands, but during H2 2008 the beer consumption slowed
down, and due to an insufficient growth and a non optimal product mix the
strategy did not lead to the expected results. 

Poland saw a slowdown in beer consumption in 2008, particularly in Q4 which saw
an actual decline. This follows a number of years with strong growth. In
January 2008, Royal Unibrew moved its Polish head office from Cracow to Warsaw,
and new joint management was established of the three breweries. Considerable
investments were made in a new marketing and sales strategy for the strongest
brands Lomza, Brok, Strelec and Rybnicki, and a national brand, Cooler, was
launched. 

Malt and Overseas Markets 

Malt and Overseas Markets	2008	2007	% change
Sales (million hectolitres)	0.6	0.6	5
Net revenue (mDKK)	513	483	6
Operating profit
(before special items) (mDKK)	51	63	-20

Profit margin (%)	10.0	13.1	
EBIT (mDKK)	50	63	-23
EBIT margin (%)	9.6	13.1	

The ”Malt and Overseas Markets” segment comprises, in addition to all malt
drinks markets, the beer and soft drinks activities in the UK, Caribbean and
North American markets. "Malt and Overseas Markets" ac-counts for 8% of total
sales and 12% of net revenue. 

In this segment growth was realised in both sales and revenue in 2008. The
acquisition-related growth from the breweries in St. Vincent, Antigua and
Dominica, which were acquired in mid 2007, represented 12% and 13%,
respectively; thus organic sales and revenue reduction of some 7% has been
realised measured in DKK, whereas the decrease was 3% measured in local
currencies. It is estimated that the declining USD and GBP rates have affected
revenue and results in the segment negatively by DKK 20 million and DKK 15
million, respectively, in 2008. The development in the underlying demand should
be viewed especially in light of the decline in the Caribbean economies, see
below. 
 

Malt and Overseas Markets	Actual 2008	Growth over 2007
	Net revenue
(mDKK)	Sales
(thousand hec-tolitres)	Net revenue (%)	Sales (%)
The Caribbean	296	277	10	12
The UK	79	82	-3	1
Africa	71	140	17	11
USA/Canada	37	50	-4	2
Other European markets	18	20	-3	-5
The Middle East	12	24	-18	-39
Total Malt and Overseas Markets	513	593	6	5

Developments in the Caribbean in 2008 were affected by increasing raw materials
prices and reduced dispos-able income in the region, primarily due to the
financial crisis in the USA and its spill-over effect on Royal Unibrew's
markets by way of declining tourism, increasing unemployment and fewer money
transfers from residents of the USA. Therefore, 2008 has been a very difficult
year in the region. Product price increases have resulted in declining market
shares, and earnings have been reduced. In the markets where Royal Unibrew is
represented, the market share held is typically 40-45%, whereas the market
share in the islands in which Royal Unibrew has its own breweries is between
50% and 80%. No new products have been launched in the region in 2008. 

In Africa revenue went up by 17% in 2008 in a strongly growing market. The main
part of the growth was realised in Tanzania, where Vitamalt holds a market
share of some 44%. 

In the UK market Supermalt maintained its market share. In H2 Supermalt Light
was successfully launched in several major chains including Tesco and
Asda-Walmart. 

In the USA Royal Unibrew saw declining sales due to the dollar rate and lost
market shares due to price in-creases. In Canada  Faxe 10% maintains its
position in the strong-beer segment. 

SHARE OPTIONS
Royal Unibrew has two ongoing share option programmes covering the 2008
financial year and the 2008-2010 Strategic Plan period, respectively. The share
option programmes apply to the Executive Board and some 20 executives. Under
these programmes, the participants may annually be granted options
corresponding to a maximum number of shares of 126,578 based on a share price
of 118.5*) and 20,460 shares based on a share price of 510, respectively. Half
of the options relating to the financial year will be granted without any
per-formance conditions, whereas the other half will be granted depending, in
part or in full, on the realisation of the targets for ROIC (return on invested
capital) and profit growth. Only the half of the options not subject to
performance conditions relating to the 2008 financial year will be granted. The
options related to the Strategic Plan will be exercisable only if certain of
the Strategic Plan targets are realised. 

 
On a total basis, the following share options remain unexercised:

Granted	Total number
 unexercised	Number held by Executive Board	Exercise price	Exercise period
Re 2003	5,993	0	401	4/2007 - 4/2009
Re 2004	8,080	2,092	478	4/2008 - 4/2010
Re 2005	15,832	2,462	 648	4/2009 - 4/2011
Re 2006	16,172	2,756	 695	4/2010 - 4/2012
Re 2007	12,362	2,231	 510	4/2011 - 4/2013
Re 2008	63,289	9,283	*)118.5	4/2012 - 4/2014
Re Strategic Plan 2008-2010	
20,460	
2,231	
510	
4/2011 - 4/2013
Total	142,186	21,055		

*) The options will be priced on the basis of average market price over the 10
trading days following the pub-lication of the Annual Report of the Company for
2008. The value of the unexercised options is calculated on the basis of the
share price at 31 December 2008. 

The Company's option obligations under the option programmes are expected to be
covered by the portfolio of treasury shares. 

The market value of the unexercised options is estimated at DKK 4.7 million
(under the Black-Scholes for-mula). 

In accordance with the accounting policies adopted, an expense of DKK 2.2
million has been charged in the Annual Report for 2008 corresponding to the
share of the market value vesting in 2008. 

BALANCE SHEET AND CASH FLOW STATEMENT
Royal Unibrew's balance sheet total amounted to DKK 4,051 million at the end of
2008, which is an increase of DKK 270 million over 2007. The recognised
impairment losses on the assets related to the Polish business re-duced the
balance sheet total by DKK 455 million, whereas revaluation of the brewery
property in Aarhus (see below) increased the balance sheet total by DKK 240
million. Disregarding these two items, the balance sheet total increased by DKK
485 million due to the development in the Group's other activities. This
increase is primarily related to considerable investments in production
facilities, totalling some DKK 520 million, pri-marily the strategic
investments in PET bottling units in Denmark and the Baltic countries and the
transfer of production plant in Denmark from Aarhus to Faxe and Odense as well
as some DKK 125 million relating to the acquisition of the Latvian brewery Livu
Alus. The market value of the contracts entered into to hedge raw materials
purchase prices is recognised in ”prepayments” in assets and in ”other
payables” in current liabili-ties and contributes materially to the increase of
the balance sheet total. 

The brewery activities in Aarhus were discontinued in the autumn of 2008 and
the work of preparing for al-ternative use of the centrally situated areas with
a view to sale of the site was commenced. Analyses and pro-ject descriptions
are progressing as planned and a changed local plan is expected in mid 2010.
Due to the changed conditions in the real property market, the value of the
property is considered to be lower than pre-viously indicated (DKK 600 - 900
million). 

The brewery property in Aarhus has been reclassified from ”land and buildings”
to ”project development properties” in the balance sheet, and based on
valuations, its carrying amount has been re-valued by DKK 240 million to DKK
400 million. The revaluation has been recognised directly in equity less the
deferred tax liabil-ity of DKK 60 million, and therefore does not affect net
profit/loss for the year. 

Group equity amounted to DKK 575 million at the end of 2008, which is DKK 544
million below the 2007 fig-ure. The reduction is primarily attributable to the
negative comprehensive income of DKK 447 million for the year as well as
payment of dividend and acquisition of shares for treasury of DKK 100 million.
Comprehen-sive income was positively affected by DKK 180 million (after tax) by
the revaluation of the brewery property in Aarhus. Moreover, comprehensive
income comprises the loss for the year of DKK 483 million, value ad-justments
of foreign group enterprises by a negative DKK 99 million and of hedging
instruments by a nega-tive DKK 45 million. The equity ratio represented 14.2%
compared to 29.6% at the end of 2007. 

Free cash flow before investments in acquisitions amounted to a negative DKK
356 million in 2008 comprising positive cash flows from operating activities of
DKK 103 million and negative cash flows from net invest-ments of DKK 473
million. Dividends received from associates amounted to DKK 14 million. Cash
flows from operating activities were DKK 48 million lower in 2008 than in 2007.
The cash result with deduction of interest and tax payments amounted to DKK 12
million and was DKK 210 million lower than in 2007. A reduction in working
capital increased cash flows by DKK 94 million in 2008, which was a DKK 164
million improvement on 2007. 

At the end of 2008 , the Group's cash resources, in addition to cash and bank
balances of DKK 90 million, comprised committed, unutilised credit facilities
of some DKK 225 million. As described in the below section on capital
structure, the Group's credit facilities were renegotiated in 2009. 

In 2008 Royal Unibrew A/S acquired a total of 252,186 shares for treasury at
DKK 46 million under the share buy-back programme launched in 2007 and
completed in Q1 2008. In August 2008, a capital reduction of DKK 3 million was
realised by cancellation of 300,000 treasury shares. After this, the Company
held a total of 106,674 treasury shares at the end of 2008, equal to some 1.9%
of the Company's total capital. These shares are expected to be used to cover
the Company's share option programme. 

CAPITAL STRUCTURE, SHARE BUY-BACK PROGRAMME AND DIVIDEND POLICY 
The adopted strategy and market development have, as previously mentioned, led
to a requirement for rec-ognising impairment losses on the assets in Poland.
This has resulted in a material reduction of the Group's equity. As agreed
limits of loan agreements in terms of solvency ratio and debt ratio would thus
not be ob-served, the Company has conducted negotiations with its main bankers.
These negotiations led to the Com-pany entering into an agreement with the
banks that these will make the credit facilities considered necessary by the
Company available to the Company for the next two years. As part of the
agreement, new underlying covenants have been established, and the agreement is
subject to rules on provision of security and distribu-tion of dividend. 

The Supervisory Board finds the Company's financial structure inappropriate.
Therefore, a process has been launched to ensure a more appropriate financial
structure. In that connection, the Supervisory Board will con-sider all
relevant possibilities. It has been important for the Supervisory Board to
secure the required time for this process, which has been achieved by
establishing the above credit facilities, irrespective of this resulting in an
increase in total financial expenses due to, among other things, the increased
interest differential. 

The Company's net interest-bearing debt increased significantly during 2008,
primarily due to considerable investments in new technology and production
structure reorganisation in Denmark as well as the acquisition of Livu Alus in
Latvia in early 2008, amounting to almost DKK 2.2 billion at the end of 2008. A
reduction of the debt will therefore be a key focus in future years, to which,
among other things, the process launched by the Supervisory Board should
contribute. 

At the operational level, continuous efforts will be directed at freeing as
much cash as possible. However, due to the necessary investment programme,
including completion of changes to the Danish production and dis-tribution
structure and the increased expenses relating to the establishment of the
required credit facilities, operating activities alone are not expected to
contribute towards reducing net interest-bearing debt during 2009. 

However, the target of reducing interest-bearing debt to a level corresponding
to three times EBITDA is main-tained. 

Consequently, the Supervisory Board has found it natural to recommend to the
Annual General Meeting that no dividend be distributed for the financial year
2008. Similarly, it is the intention not to recommend dividend in the financial
year 2009 as well as there will not be realised share buy-backs until the ratio
of net interest-bearing debt to EBITDA has been reduced to the targeted level. 

MANAGEMENT CHANGES
Henrik Brandt took up the position as CEO on 1 November 2008 (see Announcement
RU31/2008 of 29 Sep-tember 2008), and Hans Savonije took up the position as
Executive Director of Northern Europe on 1 October 2008 (see Announcement
RU28/2008 of 1 August 2008). 

RESOLUTIONS BY THE SUPERVISORY BOARD AND RECOMMENDATIONS FOR THE ANNUAL GENERAL
MEETING 
The Supervisory Board recommends to the Annual General Meeting that, due to the
Company's considerable interest-bearing debt, Royal Unibrew A/S should not pay
any dividend for 2008 and 2009. The Supervisory Board proposes that the net
loss of the Parent Company be allocated to retained earnings. 

Furthermore, the Supervisory Board will propose that the Annual General Meeting
authorise the Supervisory Board to acquire up to 10% shares for treasury, cf
section 48 of the Danish Companies Act, in the period up until the next Annual
General Meeting. 

Finally, the Supervisory Board will propose that the future Annual General
Meetings of Royal Unibrew be held in either Odense, Faxe or somewhere in
Greater Copenhagen. 

PROSPECTS
During H2, market conditions changed significantly due to the globally
declining economic growth, and sev-eral markets are now seeing recession. Both
customers and consumers were affected by the general uncer-tainty resulting in
consumer reluctance and reduction of inventories in the distribution chain. 

In spite of beer and soft drinks being considered less sensitive to market
fluctuations than many other product categories, the considerable market
volatility and inadequate visibility are expected to continue in 2009. 

The general uncertainty of the economic development, possibly changed
consumption habits and difficult financial conditions imply that predictions of
the future are significantly more difficult to make than previ-ously, and that
expectations of future developments, even in the short term, are subject to
considerable uncer-tainty. 

In 2008 Royal Unibrew won market shares in most key markets, and Royal Unibrew
is still expecting to see a favourable development in market positions and thus
defend the market share wins. However, the key mar-kets to which Royal Unibrew
has exposure (Denmark, Italy, the Baltic countries and Poland) are not expected
to show growth, and there are considerable signs of recession. Consequently,
only moderate net selling price increases are anticipated in most markets in
2009. Royal Unibrew's sales and revenue are therefore expected to be slightly
declining in 2009 as compared to 2008. It is assumed in that connection that
consumer behaviour will not show any material negative trends as compared to
the last months of 2008 as regards for example choice of price categories and
sales channels. 

Moreover, 2009 is expected to continue to bring moderate net selling price
increases in most markets to com-pensate for the increased costs of significant
raw materials relating to contracts entered into in 2008. It is as-sumed in
that connection that consumer behaviour will not show any material negative
trends as compared to the last months of 2008 as regards for example choice of
price categories and sales channels. 

The development in expenses in 2009 will be affected by an approximate 6%
increase in raw material costs compared to 2008 due to the contracts and hedges
made in 2008, whereas pay increases in most markets are expected to moderate as
compared to previously. 

The comprehensive projects commenced in Denmark in 2008 in connection with the
reorganisation of the Danish production structure (closure of the Aarhus
brewery) and the change of the distribution system will have a positive effect
on profitability in 2009 as projects are completed during H1 2009. 

In connection with the change of Royal Unibrew's strategic focus mentioned
above, a number of initiatives will be launched: 

•	In Poland sales and marketing efforts will be concentrated. The production
network structure will be simplified by closing the brewery in Koszalin, and
activities at the head office in Warsaw will be ad-justed. The total staff is
expected to be reduced by some 100, and EBIT is expected to improve. 

•	In continuation of the changes to the production platform and the
distribution system in Denmark, a structural and organisational adjustment will
be initiated in order to further simplify and enhance the efficiency of the
Danish business. The staff is expected to be reduced by some 100 salaried
employees, and EBIT is expected to improve. 

•	In order to strengthen the already strong market positions in Latvia and
Lithuania, joint operating management will be established. The combination
enables improved resource utilisation within product development, production,
logistics and administration while maintaining strong local market presence.
These initiatives are expected only to have a limited effect in 2009. 

•	With a view to boosting the Group's cash flow, 2009 will have special focus
on optimising the Group's working capital and investments. It is, however,
expected that operating activities alone will not con-tribute towards a
material reduction of interest-bearing debt during 2009. At the same time, a
process will be launched to ensure a more appropriate capital structure. 

Due to the material investments made in 2008, depreciation will increase in
2009 as compared to 2008. 

Based on the above, EBIT (before "special items" and impairment) is expected to
be better than the corre-sponding figure in 2008 (DKK 135 million). 

”Special items” - primarily related to the above-mentioned reorganisation in
Poland and Denmark - are ex-pected to affect results for the year negatively by
DKK 35 million in Q1 2009. 

Royal Unibrew's net financials in 2009 are expected to amount to DKK 160 - 180
million. The level of net fi-nancials is especially affected by the increased
interest differential due to refinancing as well as by the in-creased average
indebtedness. 

It is assumed that the general interest level will remain unchanged in 2009.

The tax rate for 2009 is expected to be at DKK 45 million since, due to the
size of the Company's debt, finan-cial expenses are not fully deductible 

As to cash flow focus will be on reducing the basic working capital. Likewise,
investments apart of those al-ready started in 2008 will be held at a low
level. Totally, it is expected that the interest-bearing debt will not be 
reduced in 2009, but it is a continuing objective to reduce the
interest-bearing debt to a level of three EBITDA.  A process will be launched
with a view to ensuring a more appropriate capital structure. 

The expected development in 2009 is - in addition to the above-mentioned issues
- subject primarily to the general economic situation not deteriorating further
and to no significant changes occurring in consumer be-haviour during the year.
Increased duties on beer and soft drinks and potentially increasing VAT rates
may have a negative effect on any affected markets. 

Intensified competition may obstruct the net price increases assumed by Royal
Unibrew. 

In terms of foreign exchange, it has been assumed that DKK will remain stable
to EUR. Material changes to the exchange rates at the end of 2008, primarily
LAT, LTL and GBP, may affect the above expectations. 

STATEMENTS ABOUT THE FUTURE
The statements about the future made in the Annual Report for 2008 reflect
Management's expectations in respect of future events and financial results, as
well as of economic trends in key markets and developments in international
money, foreign exchange and interest rate markets. Statements about the future
will inher-ently involve uncertainty and may be affected by - in addition to
global economic conditions - market-driven price reductions, market acceptance
of new products, packaging and container types, unforeseen termination of
working relationships and changes to regulatory aspects (taxes, environment,
packaging), etc. The actual results may therefore deviate from the expectations
stated. 

Royal Unibrew is a party to a limited number of legal actions. These legal
actions are not expected to have any material impact on the financial position
of Royal Unibrew. 

ANNUAL GENERAL MEETING
The Annual General Meeting of Royal Unibrew will be held on 29 April 2009, at
17:00 in Odense. 

FINANCIAL CALENDAR FOR 2009
Annual General Meeting:
29 April 2009	Annual General Meeting in Odense

It has been decided that as of 2009 there will no longer be held Shareholders'
Meetings in Royal Unibrew A/S. 

Announcements of financial results:
29 April 2009	Q1 Report 2009
25 August 2009	H1 Report 2009
11 November 2009	Q3 Report 2009

 
ANNOUNCEMENTS TO NASDAQ OMX COPENHAGEN IN 2008

  3 January 2008	01/2008	Share Buy-back at Royal Unibrew A/S
  4 January 2008	02/2008	Royal Unibrew's acquisition of all activities of Livu
Alus - Latvia's number 3 brewery in terms of size - now realised 
  7 January 2008	03/2008	Royal Unibrew's brewery in Aarhus
  8 January 2008	04/2008	New Strategic Plan of Royal Unibrew A/S
11 January 2008	05/2008	Share Buy-back at Royal Unibrew A/S
17 January 2008	06/2008	Royal Unibrew sets new goals with double up
21 January 2008	07/2008	Section 29 announcement from Lonmodtagernes Dyrtidsfond
22 January 2008	08/2008	Share Buy-back at Royal Unibrew A/S
24 January 2008	09/2008	Kempen Capital Management NV owns 5% of the share
capital in Royal Unibrew A/S 
31 January 2008	10/2008	Share Buy-back at Royal Unibrew A/S
1 February 2008	11/2008	Royal Unibrew's brewery in Aarhus
11 February 2008	12/2008	Share Buy-back at Royal Unibrew A/S
20 February 2008	13/2008	Share Buy-back at Royal Unibrew A/S
25 February 2008	14/2008	Share Buy-back at Royal Unibrew A/S
26 February 2008	15/2008	Change in the Financial Calendar - Announcement of
Annual Results 2007 of Royal Unibrew A/S 
29 February 2008	16/2008	Annual Results 2007
26 March 2008	17/2008	Executive Director Northern Europe moves on to new
challenges 
28 March 2008	18/2008	Reporting according to the Danish Securities Act section
28a 
 3 April 2008	19/2008	Notice of the Annual General Meeting of Royal Unibrew A/S
 9 April 2008	20/2008	Guidelines for incentive pay programme
28 April 2008	21/2008	Q1 Report 2008
28 April 2008	22/2008	Annual General Meeting of Royal Unibrew A/S
 6 May 2008	23/2008	Reporting according to the Danish Securities Act section 28a
 7 May 2008	24/2008	Reporting according to the Danish Securities Act section 28a
 7 May 2008	25/2008	Reporting according to the Danish Securities Act section 28a
 8 May 2008	26/2008	Reporting according to the Danish Securities Act section 28a
19 June 2008	27/2008	Executive Director Technics & Supply Povl Friis moves on
to new challenges 
 1 August 2008	28/2008	New director in Royal Unibrew A/S
25 August 2008	29/2008	Interim Report for Q2 and H1 2008
26 August 2008	30/2008	Reduction of Capital and cancellation of treasury
shares, amendment of Articles of Association 
29 Sept. 2008	31/2008	Poul Møller resigns and Henrik Brandt will be new
managing director (CEO) in Royal Unibrew A/S 
At the same time the outlook for 2008 is reduced
 5 October 2008	32/2008	Expectations for Royal Unibrew's results for 2008 -
elaboration on Company An-nouncement No 31/2008 of 29 September 2008 
20 Nov. 2008	33/2008	Interim Report for Q3 2008 and the Period 1 January - 30
September 2008 
26 Nov. 2008	34/2008	Reporting according to the Danish Securities Act section
28a 
18 Dec. 2008	35/2008	Changes in Royal Unibrew A/S' Financial Calendar for 2009

ANNUAL REPORT
The Annual Report is expected to be available on 2 April 2009.


 
MANAGEMENT'S STATEMENT ON THE REPORT

The Executive and Supervisory Boards have presented the Annual Report of Royal
Unibrew A/S. The Annual Report has today been considered and adopted. 

The Annual Report was prepared in accordance with International Financial
Reporting Standards as adopted by the EU and additional Danish disclosure
requirements for listed companies. 
We consider the accounting policies applied appropriate and the accounting
estimates made reasonable, and, in our opinion, the Consolidated and Parent
Company Financial Statements provide the information relevant to assess the
financial circumstances of the Group and the Parent Company. Accordingly, in
our opinion, the Consolidated and Parent Company Financial Statements give a
true and fair view of the financial position of the Group and the Parent
Company as well as of the results of the Group and Parent Company operations
and cash flows for the financial year 2008. 

In our Opinion, Management's Review gives a true and fair view of the
development in the activities and fi-nancial circumstances of the Group and the
Parent Company, of results of operations for the year and of the overall
financial position of the enterprises comprised by the Consolidated Financial
Statements as well as of the financial position of the Parent Company, and a
description of the key risks and uncertainties facing them. 

We recommend that the Annual Report be adopted at the Annual General Meeting.


Faxe, 25 February 2009


Executive Board


Henrik Brandt
CEO



Ulrik Sørensen	Hans Savonije
CFO	Executive Director	


Supervisory Board



Steen Weirsøe	Tommy Pedersen
Chairman 	Deputy Chairman


Henrik Brandt 	Ulrik Bülow 		Erik Christensen	   Erik Højsholt



Allan Meier Jensen	Kirsten Liisberg	Hemming Van
 
INCOME STATEMENT FOR 2008 (DKK ‘000)
 
Parent Company		Group
2007 		2008 		2008 		2007 
						
2,894,423		3,088,400	Revenue	4,918,600		4,574,173
(309,738)		(337,332)	Beer and mineral water excises	(739,897)		(692,411)
2,584,685		2,751,068	Net revenue	4,178,703		3,881,762
						
(1,400,478)		(1,559,763)	Production costs	(2,433,298)	 	(2,129,173)
1,184,207		1,191,305	Gross profit	1,745,405		1,752,589
						
(809,934)		(866,806)	Sales and distribution expenses	(1,387,543)		(1,268,783)
(167,648)		(150,627)	Administrative expenses	(226,844)		(249,042)
3,824		3,830	Other operating income	3,835		9,289
210,449		177,702	Operating profit before special items	134,853		244,053
						
			Special income			128,068
(76,611)		(51,231)	Special expenses	(50,125)		(107,823)
 		 	Impairment losses	(384,957)		 
133,838		126,471	Profit/loss before financial income and
expenses	(300,229)		264,298 
						
			Income after tax from investments in associates	22,654		27,998
39,760		99,290	
Dividend from subsidiaries and associ-ates			
		(709,071)	Impairment losses on investments and balances	(70,104)		
25,294		52,666	Financial income	33,899		26,704
(101,509)		(143,057)	Financial expenses	(139,185)		(98,836)
						
97,383		(573,701)	Profit/loss before tax	(452,965)		220,164
(28,783)		(32,000)	Tax on the profit/loss for the year	(30,200)		(64,930)
						
68,600		(605,701)	Net profit/loss for the year	(483,165)		155,234
			distributed as follows:			
			Parent Company shareholders' share of net profit/loss	(484,333)		151,747
			Minority shareholders' share of net profit/loss	1,168		3,487
			Net profit/loss for the year	(483,165)		155,234
						
			Parent Company shareholders' share of earnings per share (DKK)	(89.0)		26.4
			Parent Company shareholders' share of diluted earnings per share
(DKK)	(89.0)		2.2 
BALANCE SHEET, ASSETS AT 31 DECEMBER 2008 (DKK ‘000)

Parent Company		Group
2007 		2008 		2008 		2007 
						
			NON-CURRENT ASSETS			
80,645 		80,645 	Goodwill	311,275 		487,861 
2,990 		4,048 	Trademarks	167,885 		278,351 
7,589 		6,406 	Distribution rights	7,186 		8,524 
91,224 		91,099 	Intangible assets 	486,346 		774,736 
						
468,006 		326,745 	Land and buildings	643,363 		770,679 
		400,000 	Project development properties	400,000 		
162,824 		263,163 	Plant and machinery	529,291 		488,715 
150,397 		131,685 	Other fixtures and fittings, tools and equipment	214,997
		240,091 
36,573 		210,477 	Property, plant and equipment in progress	291,787 		57,536 
817,800 		1,332,070 	Property, plant and equipment	2,079,438 		1,557,021 
						
1,462,026 		1,014.696 	Investments in subsidiaries	0 		0 
179,231 		113,470 	Investments in associates	87,650 		225,691 
134,529 		76.386 	Receivables from subsidiaries	0 		0 
25,481 		20,634 	Receivables from associates	20,634 		25,481 
2,519 		56,432 	Other investments	56,900 		3,018 
10,763 		10,556 	Other receivables	11,939 		11,592 
1,814,549 		1,292,174 	Financial assets	177,123 		265,782 
						
2,723,573 		2,715,343 	Non-current assets	2,742,907 		2,597,539 
						
			CURRENT ASSETS			
56,647 		56,590 	Raw materials and consumables	122,194 		169,316 
13,083 		12,014 	Work in progress	27,177 		25,816 
87,507 		152,456 	Finished goods and purchased finished goods	265,302 		156,461 
157,237 		221,060 	Inventories	414,673 		351,593 
						
168,340 		180,098 	Trade receivables 	541,566 		577,847 
285,342 		276,156 	Receivables from subsidiaries	0 		0 
1,012 		1,008 	Receivables from associates	1,008 		1,012 
48,829 		93,570 	Other receivables	113,679 		64,035 
15,087 		134,466 	Prepayments	147,191 		31,435 
518,610 		685,298 	Receivables	,803,444 		674,329 
						
20,597 		36,055 	Cash at bank and in hand	90,384 		157,832 
						
696,444 		942,413 	Current assets	1,308,501 		1,183,754 
						
3,420,017 		3,657,756 	Assets 	4,051,408 		3,781,293 
  BALANCE SHEET, LIABILITIES AND EQUITY AT 31 DECEMBER 2008 (DKK ‘000)

Parent Company		Group
2007 		2008 		2008 		2007 
 		 		 		 
						
			EQUITY			
59,000 		56,000 	Share capital	56,000 		59,000 
0 		180,000 	Revaluation reserves	180,000 		0 
0 		0 	Translation reserve	(102,279) 		(7,694) 
9,994		(34,289)	Hedging reserve	(34,603)		10,057 
924,695 		283,618 	Retained earnings	440,788 		960,411 
59,000 		0 	Proposed dividend	0 		59,000 
1,052,689 		485,329 	Equity of Parent Company shareholders	539,906 		1,080,774 
						
0 		0 	Minority interests	34,922 		38,689 
						
1,052,689 		485,329 	Equity	574,828 		1,119,463 
						
						
96,094 		169,731 	Deferred tax	179,378 		127,718 
734,503 		734,655 	Mortgage debt	734,655 		749,751 
645,203 		770,504 	Credit institutions	968,888 		790,260 
1,475,800 		1,674,890 	Non-current liabilities 	1,882,921 		1,667,729 
 		 		 		 
0 		0 	Mortgage debt	0 		953 
145,278 		488,286 	Credit institutions	599,335 		228,433 
84,141 		59,572 	Repurchase obligation, returnable packaging	74,056 		97,533 
207,382 		391,175 	Trade payables	523,175 		350,407 
281,118 		234,491 	Payables to subsidiaries	0 		0 
12,730 			Corporation tax	0 		54,759 
54,862 		37,177 	VAT, excise duties, etc	61,439 		98,764 
106,017 		286,836 	Other payables	335,654 		163,252 
891,528 		1,497,537 	Current liabilities	1,593,659 		994,101 
 		 		 		 
2,367,328 		3,172,427 	Liabilities	3,476,580 		2,661,830 
 		 		 		 
3,420,017 		3,657,756 	Liabilities and equity	4,051,408 		3,781,293 



 
STATEMENT OF CHANGES IN EQUITY FOR 1 JANUARY - 31 DECEMBER (DKK '000) 
GROUP


	Share capi-tal	Revaluation reserves	Translation reserve	Hedging
reserve	Retained earnings	Proposed dividend for the year	Minority share	Total 
								
Equity at 31 December
2006	61,800	0	(9,194)	1,975	1,018,823	61,800	12,917	1,148,121 
								
Value and exchange adjustment, foreign subsidiaries
			(1,750)		(4,699)		(4,590)	(11,039) 
Tax on value and exchange adjustment			3,250					3,250
Value adjustment of hedging instruments, end of pe-riod				13,443				13,443
Reversal of value adjustment of hedging instruments, beginning of
period				(2,743)				(2,743) 
Tax on hedging instruments	 	 	 	(2,618)	 	 	 	(2,618)
Net gains recognised directly in equity	0	0	1,500	8,082	(4,699)	0	(4,590)	293
Profit for the period					92,747	59,000	3,487	155,234
Comprehensive income	0	0	1,500	8,082	88,048	59,000	(1,103)	155,527
Minority shares of acquired businesses							26,875	26,875
Dividend distributed to shareholders						(57,722)		(57,722)
Dividend on treasury shares					4,078	(4,078)		0
Acquisition of shares for treasury					(162,598)			(162,598)
Sale of treasury shares					6,854			6,854
Share-based payment					3,100			3,100
Reduction of capital	(2,800)				2,800			0
Tax on equity movements					(694)			(694)
Total shareholders	(2,800)	0	0	0	(146,460)	(61,800)	26,875	(184,185)
Total equity movements in
2007	(2,800)	0	1,500	8,082	(58,412)	(2,800)	25,772	(28,658) 
Equity at 31 December
2007	59,000	0	(7,694)	10,057	960,411	59,000	38,689	1,119,463 
STATEMENT OF CHANGES IN EQUITY FOR 1 JANUARY - 31 DECEMBER (DKK '000) 
GROUP

	Share capi-tal	Revaluation reserves	Translation reserve	Hedging
reserve	Retained earnings	Proposed dividend for the year	Minority share	Total 
Revaluation of project development property		240,000						240,000
Tax on revaluation of project development property		(60,000)						(60,000)
Value and exchange adjustment, foreign subsidiaries
			(94,585)		86		(4,935)	(99,434) 
Tax on value and exchange adjustment			0					0
Value adjustment of hedging instruments, end of pe-riod				(34,902)				(34,902)
Reversal of value adjustment of hedging instruments, beginning of
period				(13,443)				(13,443) 
Tax on hedging instruments	 	 	 	3,685	 	 	 	3,685
Net gains recognised directly in
equity	0	180,000	(94,585)	(44,660)	86	0	(4,935)	35,906 
Profit/loss for the period					(484,333)	0	1,168	(483,165)
Comprehensive income	0	180,000	(94,585)	(44,660)	(484,247)	0	(3,767)	(447,259)
Minority shares of acquired businesses								0
Dividend distributed to shareholders						(54,901)		(54,901)
Dividend on treasury shares					4,099	(4,099)		0
Acquisition of shares for treasury					(46,244)			(46,244)
Sale of treasury shares					1,551			1,551
Share-based payment					2,218			2,218
Reduction of capital	(3,000)				3,000			0
Tax on equity movements, shareholders					0			0
Total shareholders	(3,000)	0	0	0	(35,376)	(59,000)	0	(97,376)
Total equity movements in
2008	(3,000)	180,000	(94,585)	(44,660)	(519,623)	(59,000)	(3,767)	(544,635) 
Equity at 31 December
2008	56,000	180,000	(102,279)	(34,603)	440,788	0	34,922	574,828 
 

STATEMENT OF CHANGES IN EQUITY FOR 1 JANUARY - 31 DECEMBER (DKK '000) 
PARENT COMPANY

	Share capi-tal	Revaluation reserves	Hedging reserve	Retained earnings	Proposed
dividend for the year	Total 
Equity at 31 December 2006	61,800		2,637	1,061,274	61,800	1,187,511
		0				
Value and exchange adjustment, foreign subsidiaries			13,356			13,356
Value adjustment of hedging instruments, end of year 						0
Reversal of value adjustment of hedging instru-ments, beginning of
year			(3,662)			(3,662) 
Tax on hedging instruments	 		(2,337)	 	 	(2,337)
Net gains recognised directly in equity	0	0	7,357	0	0	7,357
Net profit for the year				9,600	59,000	68,600
Comprehensive income	0	0	7,357	9,600	59,000	75,957
Dividend distributed to shareholders					(57,722)	(57,722)
Dividend on treasury shares				4,078	(4,078)	0
Acquisition of shares for treasury				(162,598)		(162,598)
Sale of treasury shares				6,854		6,854
Share-based payments				3,100		3,100
Reduction of capital	(2,800)			2,800		0
Tax on equity movements				(413)		(413)
Total shareholders	(2,800)	0	0	(146,179)	(61,800)	(210,779)
Total changes in equity in 2007	(2,800)	0	7,357	(136,579)	(2,800)	(134,822)
Equity at 31 December 2007	59,000	0	9,994	924,695	59,000	1,052,689
STATEMENT OF CHANGES IN EQUITY FOR 1 JANUARY - 31 DECEMBER (DKK '000) 
PARENT COMPANY

	Share capital	Revaluation reserves	Hedging reserve	Retained earnings	Proposed
dividend for the year	Total 
Revaluation of project development property		240,000				240,000
Tax on revaluation of project development property		(60,000)				(60,000)
Value adjustment of hedging instruments, end of year 			(34,289)			(34,289)
Reversal of value adjustment of hedging instru-ments, beginning of
year			(13,356)			(13,356) 
Tax on hedging instruments	 	 	3,362	 	 	3,362
Net gains recognised directly in equity	0	180,000	(44,283)	0	0	135,717
Net profit/loss for the year				(605,701)	0	(605,701)
Comprehensive income	0	180,000	(44,283)	(605,701)	0	(469,984)
Dividend distributed to shareholders					(54,901)	(54,901)
Dividend on treasury shares				4,099	(4,099)	0
Acquisition of shares for treasury				(46,244)		(46,244)
Sale of treasury shares				1,551		1,551
Share-based payments				2,218		2,218
Reduction of capital	(3,000)			3,000		0
Total shareholders	(3,000)	0	0	(35,376)	(59,000)	(97,376)
Total changes in equity in
2008	(3,000)	180,000	(44,283)	(641,077)	(59,000)	(567,360) 
Equity at 31 December 2008	56,000	180,000	(34,289)	283,618	0	485,329
						
Only the hedging reserve and retained earnings may be used for distribution of
dividend to Parent Company shareholders.	 
Retained earnings include share premium account of DKK 53.9 million for which a
separate restricted reserve is no longer 
required due to changes to the Danish Companies Act.					
 
CASH FLOW STATEMENT (DKK ‘000)
 

Parent Company			Group
2007 		2008 			2008 		2007 
 							
68,600		(605,701)	Net profit/loss for the year		(483,165)	 	155,234
238,777		814,986	Adjustments for non-cash operating items		744,950		239,666
307,377		209,285			261,785		394,900
			Change in working capital:				
75,504		10,126	 +/- change in receivables		51,578		(45,364)
17,660		(63,823)	 +/- change in inventories		(81,622)		(14,472)
(26,533)		93,807	 +/- change in payables		123,737		(10,812)
374,008		249,395	Cash flows from operating activities before finan-cial income
and expenses		355,478		324,252 
							
25,148		52,660	Financial income		34,003		26,923
(80,281)		(104,423)	Financial expenses 		(151,865)		(92,823)
318,875		197,632	Cash flows from ordinary activities		237,616		258,352
							
(82,401)		(77,354)	Corporation tax paid		(134,408)		(106,895)
236,474		120,278	Cash flows from operating activities		103,208		151,457
							
39,760		99,290	Dividends received from subsidiaries and
associ-ates		14,336		15,958 
116		0	Sale of securities				
42,902		9,244	Sale of property, plant and equipment		45,349		212,141
(130,489)		(363,045)	Purchase of property, plant and
equipment		(519,107)		(222,543) 
							
188,763		(134,233)	Free cash flow		(356,214)		157,013
							
6,000		0	Sale of associates				17,990
(424,817)		0	Acquisition of subsidiaries		(126,546)		(393,477)
(57,265)		(38,400)	Acquisition of intangible and financial assets	(3,045)	
	(2,340) 
(523,793)		(292,911)	Cash flows from investing activities		(589,013)		(372,271)
							
300,123		125,453	Proceeds from raising of non-current debt		141,986		300,123
(65,652)		0	Repayment of non-current debt		(16,049)		(69,923)
(10,737)		343,008	Change in current debt to credit
institutions		391,799		(5,036) 
(15,851)		(180,776)	Change in financing of subsidiaries				
(57,722)		(54,901)	Dividends paid		(54,901)		(57,722)
(162,598)		(46,244)	Acquisition of shares for treasury		(46,244)		(162,598)
6,854		1,551	Sale of treasury shares		1,551		6,854
(5,583)		188,091	Cash flows from financing activities		418,142		11,698
							
(292,902)		15,458	Change in cash and cash equivalents		(67,663)		(209,116)
313,499		20,597	Cash and cash equivalents at 1 January		157,832		368,320
0		0	Exchange adjustment		215		(1,372)
20,597		36,055	Cash and cash equivalents at 31 December		90,384		157,832
							
DEFINITIONS OF KEY FIGURES AND RATIOS

Net interest-bearing debt	Mortgage debt and debt to credit institutions less
cash at bank and in hand, interest-bearing current investments and receiv-ables 
Free cash flow	Cash flow from operating activities less net investments in
property, plant and equipment and plus dividends from asso-ciates 
Dividend per share (DKK)	Proposed dividend per share
Earnings per share (DKK)	Royal Unibrew A/S' share of the profit for the
year/number of shares in circulation 
Cash flow per share (DKK)	Cash flow from operating activities/number of shares
in circu-lation 
Diluted earnings and cash flow per share (DKK)
	Royal Unibrew A/S' share of earnings and cash flow, respec-tively, from
operating activities/average number of shares in circulation including share
options "in-the-money" 
EBITDA
	Earnings before interest, tax, depreciation, amortisation and impairment
losses as well as profit from sale of property, plant and equipment and
amortisation of intangible assets 
EBIT	Earnings before interest and tax
Return on invested capital after tax including goodwill (ROIC)
	Operating profit before special items net of tax as a percentage of average
invested capital (equity + minority interests + non-current provisions + net
interest-bearing debt - financial assets) 
Profit margin
	Operating profit before special items as a percentage of net revenue
EBIT margin	EBIT as a percentage of net revenue

Free cash flow as a percentage of net revenue
	Free cash flow as a percentage of net revenue
Net interest-bearing debt/EBITDA	The ratio of net interest-bearing debt at year
end to EBITDA 
Equity ratio	Equity at year end as a percentage of total assets
Debt ratio	Net interest-bearing debt at year end as a percentage of year-end
equity 
Asset turnover	Net revenue/total assets at year end

Return on net assets
	Operating profit before special items as a percentage of aver-age operating
assets. Operating assets comprise total assets less cash and cash equivalents,
other interest-bearing assets and investments in associates 
Net return on equity	Consolidated profit after tax as a percentage of average
eq-uity 
Dividend rate
	Dividend calculated for the full share capital as a percentage of the Parent
Company shareholders' share of consolidated profit after tax for the year