116770 Project Obelix Pt1.qxp - Carlsberg Group

Carlsberg GroupNote31 Acquisition and disposal of entitiesThe acquisition will generate the following significant advantages:• Complete control over BBH and the elimination of uncertainties as to long-term control over the asset and a considerableimprovement of the Carlsberg Breweries Group's long-term growth profile, including realisation of synergies.• Complete ownership of BBH and the opportunity for the Carlsberg Breweries Group to take full advantage of the potential of theCarlsberg and Tuborg brands on BBH's markets.• Significant exposure to growth markets.The acquisition of the French and Greek breweries supports the Carlsberg Breweries Group's existing portfolio of leading market• positions in Europe, which increases capacity and provides the opportunity for synergies through the implementation of the CarlsbergBreweries Group's Excellence programmes.• Increased sales volumes provide the Carlsberg Breweries Group with the opportunity for generating significant synergies due toreduced indirect production overheads, implementation of best practice in the brewing industry and cost savings on purchases.• The acquisition strengthens the Carlsberg Group's existing and growing presence in Asia through the acquisition of additionalactivities on the attractive Chinese and Vietnamese markets.Assets held for sale at the acquisition date mainly comprise logistic entities in France following changes in logistic anddistribution.The preliminary goodwill represents a significant amount due to considerable synergies that are expected to be generated in theacquired entities, the intellectual capital represented by the acquired staff and the positive growth expectations for BBH. The synergiescomprise cost savings from the purchase and Excellence programmes. Also, goodwill will reflect synergies in the form of increased salesthrough presence in a larger part of Europe and Asia, the opportunity to launch global and/or regional brands throughout neworganisation, synergies from research and development and improved utilisation of the workforce and its intellectual capital.Baku-Castel Brewery. Baku Castel Brewery is the largest brewery in Azerbaijan, providing a solid foundation for expanding theCarlsberg Group's activities in Eastern Europe. Baltika Brewery is exporting beer to Azerbaijan, which represents a positive growthpotential. Goodwill represents the value of workforce acquired and synergies in the expanded business. The balance sheet Baku-CastelBrewery is based on a preliminary estimate of the fair value of acquired assets and liabilities, which may be adjusted in 2009.The acquired activities contribute positively to operating profit before special items by approximately DKK 2,367m and to the profit forthe year by approximately DKK 1,550m. No calculation has been made of the estimated profit for the period January - December hadthe acquisition been completed at 1 January 2008, as this is not possible due to material differences in accounting policies in some ofthe acquired entities where the effect of the difference prior to the acquisition cannot be determined.F-56