2002 11 07

Slide1: 

9M/2002 Interim Report January - September www.hartwall.fi

Running order: 

Hartwall Group Interim Report 9M/ 2002 Baltic Beverages Holding Full-year outlook Running order

Hartwall Group : 

Hartwall Group Hartwall is Finland’s leading beverage company (est. 1836) 45% aggregate market share in January-September 2002 Main product groups; beer, cider, soft drinks, mineral waters and RTD products Hartwa-Trade; importer and distributor of world-class spirits and wines Baltic Beverages Holding (BBH) - 50% ownership of high growth exposure in Russia, Baltics and Ukraine market leader in Russia (market share 33%*) and the Baltic countries (46 %*), and third position in Ukraine (20 %*) (*market shares in January-September 2002) 2,383 million litres production in 2001, growth of 30% from 2000 Group turnover in 2001 of EUR 807.6 million with an EBIT margin of 20.1% In February 2002 Hartwall announced it will join forces with Scottish & Newcastle thus creating a leading European brewer.

Slide4: 

Area of operation a new map is being drawn…

Group SummaryJanuary – September 2002: 

Group Summary January – September 2002 Scottish & Newcastle plc’s (S&N) ownership in Oyj Hartwall Abp by the end of September 99.7% of the shares 99.9% of the voting rights S&N has initiated a redemption process to acquire title to all the shares, which is estimated to take place by the end of the current year.  Hartwall Group’s consolidated net sales and operating profit grew substantially BBH continues to outperform in all key markets Market share in Russia has grown by 5% to 33% Volume and sales growth in Finland

Group SummaryJanuary – September 2002: 

Group Summary January – September 2002 Baltic Beverages Holding (BBH) continued to strengthen its market position sales volume: +27% net sales: +33% operating profit: +27% out of a total market growth in Russia of 570 million litres, BBH accounted for 72% resulting in a market share of 33% (28%). The method of consolidation has been changed from the monetary non-monetary method to the current rate method as from beginning of 2002.

Group SummaryJanuary – September 2002: 

Group Summary January – September 2002 Hartwall’s (Finland) net sales grew thanks to an increase in volume and higher selling prices: sales volume: +4% net sales: +9% operating profit: –15% the market share rose to the previous year’s level of 45%.

Group SummaryJuly– September 2002: 

Group Summary July– September 2002 Summary of Hartwall Group’s third-quarter result: net sales: EUR 278.8 million (+10%) operating profit: EUR 66.3 million (+2%) earnings per share: EUR 0.59 (+15%).

Hartwall Group Key Figures: 

Hartwall Group Key Figures

BBH Key Figures : 

BBH Key Figures

Net sales: 

Net sales MEUR Million euro 99 00 01 02 86 111 140 174 143 174 112 152 129 224 254 190 196 99 00 01 02 99 00 01 02 99 00 01 02 288 279

Operating profit: 

Operating profit MEUR Million euro 18 13 37 32 29 41 17 7 2 53 65 29 27 99 00 01 02 99 00 01 02 99 00 01 02 99 00 01 02 66 66

12 month rolling operating profit : 

12 month rolling operating profit Million euro % 82 94 99 103 113 125 153 163 172 182 188

Earnings per share January - September: 

Earnings per share January - September euro

Cash flow: 

Cash flow

Baltic Beverages Holding: 

Baltic Beverages Holding

BBH’s ownership structure 30 September 2002 : 

BBH’s ownership structure 30 September 2002 50% 50% 1) Slavuta is the only malthouse owned directly by BBH. the four others are owned by the breweries.

BBH’s aggregate volume growth (million litres): 

BBH’s aggregate volume growth (million litres) 14 50 99 160 201 458 616 913 1,278 1,829 1,844 2,333 '1-6/02 9M + 27% 2,384 estimate 2,900-3,000

BBH Market trends, beer: 

BBH Market trends, beer

Russian beer market: 

Russian beer market Source: BBH

Full-year outlook: 

Full-year outlook Net sales and operating profit before one-off items will continue to show good growth. In Russia, BBH has strengthened its market share and improved its brand position, and is well positioned to take advantage of continuing market growth. The beer market in Russia shows signs of slackening in the fourth quarter. Despite that, BBH is geared for market share increase as well as margin improvement through cost cuts.   For the longer term, industry forecasts continue to predict good beer volume growth, underpinned by improving economics, improved quality of supply, and growing per capita consumption from a low base.   Capital expenditures, funded largely from operational cash flow, will remain at a high level, as the business continues to invest in expanding the BBH business and in improved efficiency in Finland at the Lahti production and logistics centre. Overall, there will be a slight increase in net debt and higher financial expenses for the Group.