The principal activities of the Group are the brewing and sale of beer and stout. These activities are carried out through the Company's subsidiary, joint venture and associated companies to which the Company also provides management and administrative services.

Group profit before interest and tax (PBIT) increased by 18.6% to $120.7 million during the financial year. Attributable profit before extraordinary items increased by 25.6% to $50.2 million.

Singapore
A 3% volume decline in the Singapore domestic market could only be partly offset by improved export sales.

Malaysia
Notwithstanding subdued market conditions, PBIT improved in the current year due to one-off provisions in the previous year.

Papua New Guinea
Stable local earnings were eroded by the weakening Kina.

New Zealand
Improved brewing margins arising from strong performance of premium priced brands and one-off benefits from Americas Cup and pipelining of the supermarket channel which now can sell beer were partially eroded by the weakening NZ$.

Indochina
Higher sales volume in Indochina (Vietnam and Cambodia) and completion of amortisation of pre-operating expenses in October 1999 in Cambodia boosted Indochina PBIT by 64%.

China
Hainan reported improved performance with a 62% reduction in loss arising from higher sales volume, better cost efficiencies and completion of amortisation of pre-operating expenses in March 2000. Restructuring of the Shanghai operations, which resulted in one-off provisions/write downs, and increased marketing spend were necessary to arrest the decline in sales in the fiercely competitive Shanghai beer market. However, these increased costs were more than compensated by the improvement in Hainan.

Thailand
Strong growth in the Heineken brand was more than offset by higher initial marketing investments on the newly launched Amstel brand.

Group Costs
Corporate office costs (net) declined substantially due to higher royalty and management fees and reduced marketing and corporate expenses.

Interest on Borrowings
Repayment of loans during the year resulted in substantially lower interest costs.

Exceptional Items
A sharp plunge in the NZ$ resulted in exchange losses of $8.5 million on NZ$ bank deposits placed there in support of a takeover offer for minority shares in DB Group.

Net Tangible Assets
The decline in NTA has arisen mainly from the write off of goodwill arising from the acquisition of an additional 18.2% shares in DB Group, the acquisition of the Aoke and Kronen brands and related business in Hainan and the decline in the NZ$.

Further improvement in China is expected with a turnaround envisaged in Hainan and greater management flexibility in directing the restructured Shanghai operation following an expected increase in the group's equity interest from 70% to 97%.

Barring unforeseen circumstances and notwithstanding the discontinued wine and liquor business in NZ, directors are cautiously optimistic that attributable net profit before extraordinary items for the current financial year will be higher than the year just ended.

No significant trend or event affecting the earnings of the Company or the Group has occurred between the end of the financial year, 30 September 2000, and the date of this announcement, except for completion of the disposal of Corbans Wines by DB Group and the capital repayment by that company (Company's share will be S$81 million approximately) and the increase in the group's interest in Shanghai already referred to.

DIVIDEND/NOTICE OF ANNUAL GENERAL MEETING

The Directors propose, subject to shareholders' approval at an Annual General Meeting to be held on 20 February 2001, a final dividend of nine (9) Singapore cents per share of $1, being AFTER deduction of Singapore tax, to be paid on 16 March 2001. This is equivalent to a gross dividend of 12.08%. Taken with the interim dividend this will give a total distribution for the year of 18 cents per share after tax, or 24.16% gross (last year: 18 cents after tax, or 24.6% gross).

Registrable transfers received by the Company's Registrars, Barbinder & Co Pte Ltd, 8 Cross Street, #11-00 PWC Building, Singapore 048424 by 5.00pm on 2 March 2001 will be registered before entitlements to the dividend are determined. Notice is hereby given that the share registers will be closed from 5 March 2001 to 7 March 2001, both dates inclusive, for preparation of dividend warrants.

Notice is hereby given that the Annual General Meeting of the Company will be held at Level, 2 Alexandra Point, 438 Alexandra Road, Singapore 119958 on Tuesday 20 February 2001 at 10.00 am.