Annual Report 2001 - Carlsberg Group

More documents

Recommendations

Info

Financial Review of the Carlsberg Group 73 The company pursues a policy of monitoring and managing this exposure centrally through financial transactions, and net debt is an important element in the company’s hedging of exchange rate risks. The currency composition of net debt is based on considerations regarding the composition of assets and liabilities and the currencies. The principles governing the management of exchange risks stipulate that this function is carried out by the company’s Corporate Treasury department. The currency exposure in the individual Group companies is eliminated through intra- Group financial transactions and exposure is thus aggregated and managed centrally. In 2001, only minor fluctuations were registered in the primary currencies involving exchange rate risks for the company. Interest rate risks The most significant interest rate exposure relates to interest-bearing debt, as the company did not hold any significant long-term, interest-bearing assets as at 31 December 2001. The company’s loan portfolio consists of listed bond loans (GBP 200m matures in 2013, GBP 250m matures in 2011 and CHF 100m matures in 2004), bilateral loan agreements and syndicated credit facilities primarily raised in currencies in which the company holds assets. The management of the interest rate exposure involves the use of interest rate instruments such as interest rate swaps and options as well as fixed and floating rate debt. The long-term debt primarily consists of floating rate loans (67% in 2001 against 19% in 2000). As at 31 December 2001, the average term to maturity of the Group’s loans was approximately 1.96 years. The DKK duration is DKK 225m, corresponding to the change in market value of external debt that a 1% change in interest rates would cause. Liquidity risks To the extent deemed expedient, the company pursues a policy of managing funding and placement of liquid funds centrally. Funding takes place based on the subsidiaries’ investment and operational liquidity requirements. The subsidiaries’ excess liquidity is equalised internally through intra-Group accounts. Local conditions may mean that subsidiaries’ borrowing is not handled centrally. Credit risks The company monitors credit risks from central quarters. Guidelines stipulate that contracts can only be entered into with financial institutions with high debtor ratings. Cash at bank and in hand is deposited with banks with high credit rating and the company’s trade debtors are distributed in such a manner that the Group’s credit risk is not considered exceptional. Carlsberg Breweries advances loans to the ontrade, particularly in the United Kingdom through Carlsberg-Tetley. These loans amounted to approx. DKK 1.4bn. The loans are subject to continuous control and supervision, and it is estimated that provisions made are sufficient to cover any loss.
74 Accounting Policies Accounting Policies The annual accounts have been prepared in accordance with Danish accounting legislation and current Danish accounting standards. The accounting policies are unchanged from last year although there are a few changes in the contents of individual items due to the incorporation of inter alia Orkla’s beverage activities. Consolidation principles The Group accounts of the Carlsberg Group comprise the accounts of the Parent Company, Carlsberg A/S, and its subsidiaries, i.e. companies in which the Parent Company, directly or indirectly, holds the majority of the voting rights or - in some other way - has a controlling interest. Associated companies, which by agreement are managed jointly with one or more other companies are pro rata consolidated with the proportionate share of the individual items being incorporated. Other associated companies are included in the accounts at a proportionate share of their financial results and equity. The Group accounts are prepared on the basis of the accounts of the Parent Company, its subsidiaries and pro rata consolidated companies, by combining items of a uniform nature and eliminating intercompany sales, licences, interest, dividends, profit and balances. Shareholdings in subsidiaries and pro rata consolidated associated companies are offset against a proportionate share of the equity of the relevant companies, stated in accordance with the accounting policies of the Group. Minority shareholders’ share of profit and equity in subsidiaries is stated separately. In the case of acquisition of new subsidiary and associated companies as well as increases in shareholdings therein, any excess of the cost price over net assets stated in accordance with Group accounting policies at the date of acquisition is, wherever possible, allocated to the assets and liabilities of the individual companies. Any remaining amount (Group goodwill) is taken directly to equity. As a starting point, any negative difference in value (reduction in value) is taken to equity. To the extent that a negative difference in value at the time of acquisition is attributable to expected reductions in future operating results, the difference in value is appropriated to other reserves and used when the reductions are realised. In the case of disposal of subsidiaries and associated companies, the company’s results are included in the Group’s profit and loss account until the date of disposal. Any realised gains or losses compared to the book value at the date of disposal are recorded in the profit and loss account. Orkla’s beverage activities are included at book value as from 1 January 2001. Foreign currencies The accounts of foreign subsidiary and associated companies are translated into Danish kroner at the average exchange rates during the financial year for income and expense items and at the exchange rates ruling at the balance sheet date for assets and liabilities. Exchange gains and losses resulting from the translation of the net assets of foreign companies at the exchange rates ruling at the balance sheet date are taken to equity. Amounts receivable and payable in foreign currencies are translated into Danish kroner at the exchange rates ruling at the balance sheet date. Hedging arrangements are assessed separately. Realised and unrealised exchange gains and losses are recorded in the profit and loss account. Exchange gains or losses after tax on liabilities to hedge investments in subsidiary or associated companies are taken directly to equity.
Page 1 and 2:
Report and Accounts 2001
Page 3 and 4:
A Brief Presentation ▲ ▲ A Brie
Page 5 and 6:
2 Letter to the Shareholders Letter
Page 7 and 8:
4 Letter to the Shareholders lows t
Page 9 and 10:
6 Highlights and Key Figures, 5-yea
Page 13 and 14:
10 Report for 2001 Report for 2001
Page 15 and 16:
12 Report for 2001 CCNB and AD amou
Page 17 and 18:
14 Report for 2001 Asia: DKK millio
Page 19 and 20:
16 Organisation and Group Companies
Page 21 and 22:
18 Corporate Governance ments, rais
Page 23 and 24:
20 Shareholder Information Sharehol
Page 25 and 26: 22 Shareholder Information Analysts
Page 29 and 30: 26 Carlsberg Breweries Carlsberg Br
Page 31 and 32: 28 Consolidation and Growth Consoli
Page 33 and 34: 30 Consolidation and Growth Carlsbe
Page 35 and 36: 32 Regional Reports - Western Europ
Page 41 and 42: 38 Regional Reports - Eastern Europ
Page 43 and 44: 40 Regional Reports - Eastern Europ
Page 45 and 46: 42 Regional Reports - Asia Asia COU
Page 47 and 48: 44 Regional Reports - Asia position
Page 51 and 52: 48 Corporate Centre Corporate Centr
Page 53 and 54: 50 Corporate Centre UEFA Cup final,
Page 55 and 56: 52 Corporate Centre volvement in th
Page 57 and 58: 54 Corporate Supply Chain Corporate
Page 59 and 60: 56 Corporate Supply Chain dustry in
Page 61 and 62: 58 Carlsberg Research Center Carlsb
Page 63 and 64: 60 Carlsberg Properties and Foundat
Page 68 and 69: Accounts for 2001 65 Accounts for 2
Page 70 and 71: Financial Review of the Carlsberg G
Page 78 and 79: Accounting Policies 75 Turnover Sal
Page 80 and 81: Profit and Loss Account 2001 77 Pro
Page 82 and 83: Balance Sheet 79 Balance Sheet as a
Page 84 and 85: Notes to the Accounts 81 Notes to t
Page 92 and 93: Noter 89 Notes to the Accounts (DKK
Page 94 and 95: Turnover, Operating Profit and Equi
Page 96 and 97: Group Companies 93 Group Companies
Page 98 and 99: Auditors’ Report 95 Auditors’ R
Page 100 and 101: ▲ Board of Directors and Executiv
Page 102: Carlsberg A/S CVR No. 61056416 1, V
show all

Annual Report 2001 - Carlsberg Group

Create successful ePaper yourself

Delete template?

Save as template?