Interim Report for H1 2012

COMPANY ANNOUNCEMENT NO 42/2012 — 28 AUGUST 2012

Earnings improvement in H1 2012. Launch of extraordinary distribution programme of approx DKK 500 million in 2012 with increase of share buy-back programme and proposed extra dividend in 2013.

Continued earnings improvement was achieved in H1 2012 with earnings before interest and tax (EBIT) of DKK 216 million — an increase of DKK 18 million from last year. The earnings improvement reflects continued focus on further development of market and segment positions, products and brands as well as high efficiency. Sales volumes — measured in organic terms — decreased by 1% in H1, whereas net revenue increased by 3% due to, among other things, price increases in early 2012 to compensate partly for higher raw materials prices. In spite of challenging market and weather conditions, both Eastern and Western Europe saw minor organic revenue growth, and at the same time malt beverages sales increased significantly as expected. The market shares for Royal Unibrew's branded products were generally maintained or increased. A free cash flow of DKK 271 was achieved for H1, which is a DKK 72 million improvement on last year. DKK 264 million (2011: DKK 174 million) has been distributed to the shareholders through dividend distribution and share buy-backs. The Board of Directors intends to make extraordinary distributions of approx DKK 500 million over the coming years. The Board proposes an extraordinary increase of dividend for 2012 by DKK 50 million, and it has been decided to increase the existing share buy-back programme to DKK 210 million, including an extraordinary DKK 50 million for the period between the Annual General Meetings in 2012 and 2013.

"In the past months of 2012, we have focused on developing our commercial activities and on defending and reinforcing our market positions. A few good examples are the launch of Faxe Kondi Booster in the energy drink segment and our new profile bottle for the Royal series. At the same time, we have continued our efforts to achieve continuous efficiency improvement. We have achieved both organic revenue growth and earnings improvement. We have also seen a significant improvement of our cash flow. We are satisfied with the developments in H1 — especially in light of the market volatility and declining consumption of branded products in our European markets. We are pleased that the sale of the first part of the brewery site in Aarhus can be realised in September 2012 as planned, and the Board of Directors intends to make extraordinary distributions of approx DKK 500 million over the coming years from the sale of non-operational assets. We have achieved a good basis in H1 for meeting our overall expectations for 2012", says Henrik Brandt, CEO.

HIGHLIGHTS

• Royal Unibrew has generally maintained or increased its market shares for branded beer as well as soft and malt beverages.
• Net revenue decreased by 1.3% for Q2 and by 0.3% for H1 as compared to the same period of 2011. Adjusted for the divestment of the Polish activities in March 2011, net revenue increased by 2.6% for H1.
• EBITDA amounted to DKK 192 million for Q2 2012 and to DKK 278 million for H1 2012 — an increase of DKK 10 million.
• Earnings before interest and tax (EBIT) amounted to DKK 160 million for Q2 2012 and to 216 million for H1 2012 — an increase of DKK 18 million. EBIT margin for H1 2012 was 12.4% compared to 11.4% in 2011.
• Profit before tax amounted to DKK 210 million for H1 compared to DKK 180 million in 2011.
• Free cash flow amounted to DKK 271 million for H1 — a DKK 72 million improvement on 2011.
• Extraordinary distribution programme of approx DKK 500 million over the coming years to be launched in 2012.
• Share buy-back in the period between the Annual General Meetings in 2012 and 2013 to be increased to DKK 210 million, including an extraordinary DKK 50 million, and proposed extraordinary increase of dividend by DKK 50 million (DKK 4.75 per share) in 2013.

OUTLOOK

The outlook announced in March 2012 is maintained as follows:

• Net revenue: DKK 3,375-3,500 million
• EBITDA: DKK 580-630 million
• EBIT: DKK 450-500 million

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 Interim Report on Tuesday, 28 August 2012, at 9 am by audio cast at one of the following dial-in numbers:

Danish participants:   +45 327 147 67
International participants: +44 207 509 5139

US participants:  +1 718 354 1226
 

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

FINANCIAL HIGHLIGHTS AND KEY RATIOS