Interim Report January-March 2007

This is a translation. The Swedish version is the official.

• Group net sales for the first quarter decreased by 1 per cent to SEK 2,223 (2,238) million.

• The organic growth, excluding currency effects, amounted to 5 per cent.
Exchange rate fluctuations, primarily the weaker US dollar, reduced net sales by approximately SEK 100 million.

• Operating profit increased by 10 per cent to SEK 458 (417) million and the operating margin improved to 20.6 per cent (18.6). Exchange rate fluctuations reduced operating profit by approximately SEK 55 million.

• Profit after tax increased by 21 per cent to SEK 303 (251) million.

• Sales volumes increased by 5 per cent to 5.5 million 9-litre cases (5.2).

• Sales continued to increase for absolut vodka on the American and most other prioritized markets. Global growth for absolut vodka was 10 per cent in terms of sales volume.

• The remaining 50 per cent of Norwegian wine and spirits distributor Amundsen AS was acquired. The company is therefore now wholly owned by V&S.

• Agreement was reached to divest Florida Distillers with effect from 1 April.