bbhh107 presentation

2007:H1 Results: 

2007:H1 Results 1 August 2007

Contents: 

Contents Financial results Russia Other markets Outlook

Exceptional performance across BBH markets: 

Beer volumes up 30.2% Net sales growth of 37.1% EBIT up 47.9% driven by top-line growth, operational leverage and improved mix EBIT margin 22.4% (+170 bps) Share gains across all markets Baltika outperforming in a Russian beer market up 22.7% Year on year comparisons more challenging in H2 Rising input costs Exceptional performance across BBH markets

Slide4: 

BBH H1 2007 results * Includes non-beer volume

BBH net sales development H107: 

BBH net sales development H107 * Includes non-beer volume

BBH margin development H107: 

BBH margin development H107 * Includes non-beer volume

Baltika in the Russian beer market: 

Baltika in the Russian beer market Exceptional market growth of +22.7% Unseasonably mild weather, particularly in Q1 Continuing shift in consumer consumption positive for beer Strengthening of Baltika as market leader with share of 37.6% Increased market share of Baltika brand to 11.8% Strong performance in mainstream and licensed segments Increasing input costs Ongoing capacity expansion projects to support growth Source: Baltika, State Statistics Committee, Breweries

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Baltika market share performance *Estimate Note: Baltika domestic beer volumes Sources: Baltika, State Statistics Committee, Breweries * BA retail audit, Jan-Jun 2007

Brand development and innovation driving growth: 

Baltika brand extends leadership with volume growth of 42.7% Significant contribution from brand extensions Baltika Cooler now 7% share in mainstream since launch in Q2 06 Baltika 3 quality 1L PET Launch of Baltika 3 and Baltika 7 1L can SKUs National Baltika portfolio supported by leading regional brands Brand development and innovation driving growth

Brand development and innovation driving growth: 

Brand development and innovation driving growth Total licensed brand volume doubles to 1.6 MHL Tuborg leads the segment with volume growth of +106% Carlsberg volume growth of 70% Kronenbourg 1664 volumes more than doubled Re-launch of Foster’s with new styled bottles and packaging tailored to Russian market

Other markets: 

Other markets * Includes official Baltika imports Source: BBH, State Statistics Agencies, Brewers’ Unions

Other market highlights: 

Other market highlights Ukraine Turnaround plan on track Continued growth in premium/licensed segment with Baltika and Tuborg Re-launch of Slavutich brand – performing well in the mainstream Baltics Successful premium product strategy driven by innovation Strong beer volume performance +6.8% Share growth in all markets

Other market highlights: 

Other market highlights Kazakhstan Volume growth of +55% Increasing capacity to meet strong market growth Positive mix driven by Tuborg launch in Q1 and local premium brand Irbis New Markets Transaction with Olivaria Brewery in Belarus now complete – sharing best practice with our new partners Uzbekistan brewery fully operational in July

BBH Structure: 

BBH Board S&N Carlsberg Baltics Russia Ukraine Kazakhstan S&N / Carlsberg Functions BBH Functions ExComm Chair & Vice Chair 1 S&N & 1CB 5 CEOs BBH Structure Uzbekistan

Outlook for 2007: 

Outlook for 2007 Following strong market performance in H1, we expect the Russian market to grow by 11%-13% in 2007 Russian beer market reverts to 3%-5% growth in medium term Price increases in Russia just below local food & beverage inflation 2007 EBIT margin around 23% Capex of €500m- €600m to meet growing capacity demands

Supplementary slides: 

Supplementary slides

Slide17: 

BBH Group Structure As at June 30, 2007 Baltika 91%* Saku 75% Aldaris 85% SUA 75% Slavutich 92% Lvivska 99.6% Sarbast Plus 75% 50% 50% Russia Scottish & Newcastle plc Carlsberg A/S Baltics Ukraine Uzbekistan Derbes 90% Kazakhstan Olivaria 30% Belarus BBH AB * Indicates ordinary shareholding only. As at 30 June 2007, BBH, Carlsberg and Scottish & Newcastle control directly or indirectly 93% of Baltika ordinary shares and 30% of Baltika preference shares. This gives a total shareholding of 91%

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Baltika 37.6% Sun Interbrew 18.3% Ochakovo 4.1% Heineken 13.1% Efes* 9.3% * Estimate Source: State Statistics Committee, Breweries sales data SUN Interbrew since Y2005 includes Tinkoff Heineken total includes all acquisitions (since 2004) Efes includes Krasny Vostok Russian beer market development SAB Miller 6.3%

Financial Highlights – EUR & USD: 

Financial Highlights – EUR & USD MUSD Net Sales EBITDA EBITDA Margin EBIT EBIT Margin H107 1757 501 28.5% 394 22.4% H106 % change 1190 339 28.4% 249 20.7% +47.7 +47.7 +0.1pts +58.4 +1.7pts MEUR Net Sales EBITDA EBITDA Margin EBIT EBIT Margin H107 1317 375 28.5% 295 22.4% H106 % change 961 273 28.4% 199 20.7% +37.1 +37.5 +0.1pts +47.9 +1.7pts

Slide20: 

BBH Q2 2007 results * Includes non-beer volume

Currency: 

Currency 0.7481 0.0288 0.0385 0.8010 0.0293 0.0366 H107 H106 Average rate -6.60 -1.71 +5.19 % change USD : EUR RUR : EUR RUR : USD

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2007:H1 Results 1 August 2007