## Cash flow 

The cash flow statement gives a complete overview of the origin and application of the cash flow throughout the year. 

Cash flow from the operations of the Group, inclusive of financials but exclusive of changes in the working capital, amounted to DKK 3.8bn against DKK 3.0bn last year (15 months). Total cash flow from operations amounted to DKK 2.2bn against DKK 2.3bn last year (15 months), which is a considerable improvement when taking into account the accounting period. 

The Group has sold securities, resulting in a positive net contribution of DKK 0.8bn. This reve- nue has been applied to reduce short-term debt to credit institutions. Increased tied-up working capital amounted to DKK 1.6bn. 

DKK 3.6bn was applied for the purchase of tangible fixed assets and net DKK 2.0bn for the acquisition of companies, etc. 

Free cash flow amounted to a negative DKK 1.3bn against a negative DKK 3.8bn last year. 

When taking the GroupGLYPH<213>s increase in debt into consideration, a total positive cash flow of DKK 1.0bn appears for the financial year. 

In aggregate, cash at bank and in hand of the Group amounted to DKK 3.2bn at 31 December 2001. 

## Securities, cash and cash equivalents and interest-bearing debt 

At 31 December 2001, securities, cash and cash equivalents, consisting of cash at bank and in hand and listed securities, amounted to DKK 3.3bn (2000: DKK 2.9bn) based on official stock exchange prices. Furthermore, confirmed but unutilised credit facilities amounted to about DKK 4.4bn (2000: DKK 3.4bn). 

The net interest-bearing debt totalled DKK 10.9bn which is an increase of about DKK 0.6bn. This is a natural consequence of the investments described above. 

The GroupGLYPH<213>s loan portfolio consists of listed bond loans, bilateral loan agreements and syndi- cated credit facilities, primarily raised in currencies in which the Group holds assets. 

## Financial risks 

As an international business the Carlsberg Group is exposed to a number of financial risks, primarily through Carlsberg Breweries A/S. Financial risks and management and planning of liquidity are managed centrally, including funding and place- ment of excess liquidity. The use of financial instruments is regulated by instructions approved by the Board of Directors and by internal procedu- res. The instructions and procedures specify the types of financial instruments allowed, counter- parties and risk limits. 

## Exchange rate risks 

By far the predominant part of turnover originates from foreign companies translating into Danish kroner according to computed average exchange rates. Fluctuations in these currencies against the Danish krone will have a direct impact on the CompanyGLYPH<213>s profit and loss account. The companyGLYPH<213>s exchange rate exposure is distributed on many countries outside Denmark. Carlsberg BreweriesGLYPH<213> exchange rate exposure is primarily related to EURO, GBP, CHF and RUR. 

Compared to previous years, the Danish krone accounts for a significantly smaller part of ear- nings. This is mainly attributable to the addition of OrklaGLYPH<213>s beverage activities, of which BBH in parti- cular accounts for a substantial part of earnings (30%). 

In the balance sheet, fluctuations in exchange rates affect primarily the translation of the foreign companiesGLYPH<213> equity at the exchange rate ruling at the balance sheet date. Adjustment is made di- rectly against equity as is also the case with long- term loans in foreign currencies raised to hedge investments in subsidiaries. 

