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## Eastern Europe 

## Operating profit and profit margin in Eastern Europe increased despite a decline in volumes. 

We grew our market share in Eastern Europe in difficult beer markets that declined by high-single-digit percentages in 2013. The Russian beer market was impacted more than anticipated by continued disruption from the closure of non-stationary outlets, and in general the region was impacted by the macroeconomic slowdown causing consumers to reduce their spending. This became increas- ingly visible during the second half of the year. 

Our Eastern European beer volumes declined organically by 5%. 

Organic net revenue declined by 4%. Re- ported net revenue declined by 9% due to negative currency impact from the Russian and Ukrainian currencies. 

We achieved a price/mix for the year of 1%, positively impacted by price increases across all markets, which more than offset the Russian excise tax increase and a nega- tive mix. 

Operating profit grew organically by 2% and operating margin improved by 120bp to 23.3%. The profit improvement was driven by lower cost of goods sold; efficiency improve- ments across all markets and functions; and slightly lower marketing expenses due to EURO 2012. Reported operating profit was impacted by the adverse currencies and declined 4%. 

## Russian market share 

Increase (bp) 

30 

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## RUSSIA 

We continued our strong focus on balancing volume and value development in our busi- ness. Our volume market share strengthened by approximately 30bp to 38.6% and our value share improved slightly more (source: Nielsen Retail Audit, Urban & Rural Russia). 

The Russian beer market declined by an estimated 8%, mainly due to the outlet restrictions, weaker economic growth and consumer sentiment, especially in H2. 2013 was the weakest year-on-year development for the Russian economy since 2009. 

Our Russian beer volumes (shipments) declined by 7%. The year-on-year impact in 2013 from stocking and destocking in connection with the excise tax increases on 1 January 2013 and 1 January 2014 was limited. 

## Operating profit 

Organic growth 

2% 

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## Employees 

2013, average full-time employees 

11,899 

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We improved our market share in both the modern and traditional trade, and across most Russian regions, with particularly strong performances in the super-premium and mainstream segments. Brands such as Baltika 0, Baltika Cooler, Zatecky Gus, Holsten and Zhigulevskoe performed par- ticularly well, while Baltika 7 was negatively impacted by outlet restrictions. 

The level of commercial activities remained high in Russia. Several line extensions of Baltika, such as Baltika Praha and Baltika Munich, were launched, and we introduced Grimbergen with good results. In addition, for much of the year the sponsorships of the Sochi Olympic Games and the Russian Na- tional Hockey League were being activated. The launch of the rejuvenated Tuborg was an important step in strengthening Tuborg’s 

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