NET PROFIT[1] OF $363 MILLION

· Net sales revenue $2.3 billion

· Net profit[1] $363.0 million and earnings per share1 18.8 cents

· Operating cash flow pre interest and tax up 0.4% to $694.5 million

· Interim dividend of 12 cents per share

· Currency and economic conditions impact wine earnings

Financial Overview

“Today’s result demonstrates the ongoing strength of CUB and the exchange rate impacts and recessionary economic conditions in global wine.

“We maintained strong cash performance with cash flow after dividends up 20.1 per cent to $187.3 million and group cash conversion increasing 14.8 per cent to 107.3%.

“Foster’s balance sheet remains strong with net debt at $2.2 billion, interest cover of 8.9 times and committed un-drawn facilities of $1.8 billion.

Transformation Agenda

“One year on from the wine strategic review, we are doing what we promised, and benefits are being realised across both the beer and wine businesses.

“Our $100 million cost saving program is on track, delivering approximately $35 million of benefits in the first half and $70 to $80 million expected for the full year.

“The cultural change occurring is marked and sets the foundation for Foster’s as a leaner, more effective market competitor.

“We are delivering on our commitments, with the separation of our wine and beer sales force; rationalisation of the non core Australian wine tail brands; sale of non essential vineyards; and delivery of cost savings to plan.

Business Performance

“CUB’s beer portfolio remains Australia’s clear leader, with powerful brands driving strong sales growth.

“Over the past six months we have finalised the appointment of the new senior leadership team in the Wine business and we were very pleased to announce the recent appointment of John Pollaers to lead Carlton & United Breweries."