U53441 COVER ICON.qxd 3/3/08 22:19 Page FC1 Cadbury Schweppes plc Schweppes Cadbury Cover is printed on Revive 50:50 Silk, a 50% recycled paper with FSC certification. The composition of the paper is 25% de-inked past consumer waste, 25% unprinted pre-consumer waste and 50% virgin fibre. Text pages are printed on Revive 100 Uncoated, a 100% recycled paper with FSC certification. The composition of the paper is 100% de-inked post-consumer waste. All pulps used are Elemental Chlorine Free (ECF) and the manufacturing mill is accredited with the ISO 14001 standard for environmental management. The use of the FSC logo identifies products, which contain wood from well-managed forests certified in accordance with the rules of the Forest Stewardship Council. 2007 & Accounts Report Annual Annual Report & Accounts 2007 www.cadburyschweppes.com Cadbury Schweppes plc 25 Berkeley Square, London W1J 6HB Telephone: +44 (0) 20 7409 1313 Fax: +44 (0) 20 7830 5200 WorldReginfo - 589c94ab-4f59-49a9-ab76-77f3c4cfc48e U53441 COVER ICON.qxd 4/3/08 00:11 Page IFC2 We are the world’s largest confectionery company and have strong regional beverages Low cost share dealing service Unsolicited mail report Directors’ &Highlights Overview Business & review Financial statements Financial Stocktrade offers our non-US resident shareowners a The Company is legally obliged to make its share register businesses in North America and Australia. telephone share dealing service. The basic commission charge available to the general public. Consequently some for this service is 0.5% of the total value of the sale or shareowners may receive unsolicited mail, including purchase amount, with a minimum charge of £15. if you are correspondence from unauthorised investment firms. buying shares in a single trade in excess of £10,000, there is an If you wish to limit the amount of unsolicited mail you We make, market and sell unique brands additional charge of 0.5% stamp duty, with a PTM levy of £1. receive please contact: To use this service please telephone +44 (0) 845 402 3026 The Mailing Preference Service which give pleasure to millions of people between the hours of 8.30 a.m. and 4.30p. m., quoting Low Freepost (LON20771) Co204. For details of the service available to US resident London shareowners, please contact the Group Secretariat W1E 0ZT around the world every day. department at the Company’s registered office on +44 (0) 20 7830 5178, or email [email protected] American Depositary Receipts Cadbury Schweppes ordinary shares are quoted on the Full terms and conditions and information about our postal New York Stock Exchange in the form of American Depositary We are recognised as a highly respected and internet share dealing services, are available at Shares, or ADSs. ADSs are represented by American www.cadburyschweppes.com/lowcost. Depositary Receipts, or ADRs, under a sponsored ADR facility with JPMorgan Chase Bank N.A. as depositary. Each ADS company and an employer of choice. ShareGift represents four ordinary shares. Shareowners with a small number of shares, the value of which makes it uneconomical to sell them, may wish to The ADR Depositary is JPMorgan Chase Bank N.A. and consider donating them to charity through ShareGift, a enquiries may be directed to: registered charity administered by The Orr Mackintosh JPMorgan Service Center, Foundation. The relevant share transfer form can be obtained PO Box 3408, South Hackensack, from the Registrar. Further information about ShareGift is NJ 07606-3408, USA available as follows: Tel: +1 781 575 2680 www.adr.com ShareGift, The Orr Mackintosh Foundation, Global invest direct 46 Grosvenor Street, London, W1K 3HN, UK Global Invest Direct (GID) is a program established by Tel: +44 (0) 20 7337 0501 JPMorgan Chase Bank N.A. to provide a convenient www.sharegift.org and economical way for investors to increase their ADR investment in the Company. Further information about Shareowner fraud – tips on protecting your shareholding GID may be obtained from JPMorgan Chase Bank N.A: The Financial Services Authority (FSA) estimates that 28 million Freephone: +1 800 428 4237 (US only) or at the address UK consumers are targeted every year by a wide range of above. For calls from outside the US dial +1 781 575 2680. frauds. To reduce the risk of fraud happening to you please consider the following: SEC filings Highlights & Overview > Ensure all your certificates are kept in a safe place or hold In accordance with US legislation, the Company will file 01 Performance highlights your shares electronically in CREST via a nominee. a Form 20-F with the Securities and Exchange Commission > Keep all correspondence from the Registrars which (SEC) in Washington D.C. A copy of this Report and Accounts 02 Chairman's statement contains your shareowner reference number in a safe place. will be filed with the SEC as an exhibit to a Form 6-K. This 05 Chief Executive’s review Destroy correspondence by shredding. report is available for public inspection and a copy of the > If you change your address inform the Registrars. If you document is available on our website. If you wish to receive Business & Financial review Registered Office and Group Headquarters receive a letter from the Registrars regarding a change of a hard copy of this Report, please contact Group Secretariat 25 Berkeley Square, London W1J 6HB, UK address and have not recently moved house, please contact at the Company’s registered office. 10 Description of business Registered in England and Wales No. 52457 them immediately. You may be a victim of identity theft. 25 Financial review Telephone number +(44) (0) 20 7409 1313 > Know when the dividends are paid. Consider having your dividend paid directly into your bank, reducing the risk of Directors’ report www.cadburyschweppes.com cheques being intercepted or lost in the post. If you change 48 Board ofdirectors your bank account, inform the Registrar of the details of Group Secretary your new account. Respond to any letters the Registrar 50 Directors’ report Henry Udow sends you about this. Other information 53 Corporate governance report > If you are buying or selling shares, only deal with brokers Senior independent Non-executive Director registered in your country or the UK to buy or sell shares. 59 Directors’ remuneration report © Cadbury Schweppes plc 2008 Roger Carr is our Senior Independent Non-executive Over the last year many companies have become aware Director and our Deputy Chairman. He may be contacted that their shareowners have received unsolicited phone The Company’s commitment to environmental issues has been reflected Financial statements at the registered office as detailed above. calls or correspondence concerning investment matters. in the production and dispatch of this Annual Report & Accounts. 72 Financial record These are typically from overseas based brokers offering 76 Financial statements Registrars US or UK investments. Shareholders are advised to be “Sunkist” is a registered trade mark of Sunkist Growers, Inc. Computershare Investor Services PLC, very wary of any unsolicited advice. 138 Financial statements for Cadbury Photography by Philip Gatward and George Brooks Schweppes plc P.O.Box 82, The Pavilions, If you have any reason to believe that you may have been the Designed and produced by 35 Communications Bridgwater Road, target of a fraud, or attempted fraud, please contact Other information Bristol BS99 7NH, UK Computershare immediately. Printed in England at St Ives Westerham Press 148 Shareowner information Tel: +(44) (0) 870 873 503 Fax: +(44) (0) 870 703 6103 Cadbury Schweppes Annual Report & Accounts 2007 149 WorldReginfo - 589c94ab-4f59-49a9-ab76-77f3c4cfc48e Performance highlights 2007 Highlights & Overview Operational highlights* † Confectionery report Directors’ Business & review Financial statements Financial Other information > Record revenue growth** +7%: best for a decade > Excellent growth in gum and chocolate led by Trident +26% and Cadbury Dairy Milk +5% > Underlying confectionery margins before central and business improvement costs +30bps driven by strong second half growth +80bps Americas Beverages > Americas Beverages revenue growth** +4%: good performance in challenging markets > 40bps Carbonated Soft Drinks share gain led by Sunkist and A&W; Snapple revenue +5% driven by innovation > Underlying beverage margins impacted by bottler acquisitions and Accelerade launch costs Financial highlights* > Underlying EPS up 2% > Reported EPS down due to restructuring costs and 2006 profit on Europe Beverages sale > Dividend growth of 11% to 15.5p reflecting the Board’s confidence in future outlook * all numbers at constant exchange rates except where stated ** base business growth † Where we refer to Confectionery we mean the four Confectionery operating regions: BIMA, Europe, Americas Confectionery, Asia Pacific and the Central Functions which will constitute Cadbury plc as it will exist following the demerger including our integrated Australian beverages business. Where we refer to confectionery we mean only the three confectionery categories: chocolate (including cocoa based beverages), gum and candy. Reported Constant currency currency £ millions 2007 2006 growth % growth1 % Revenue 7,971 7,427 +7 +11 Underlying profit from operations2 1,050 1,073 -2 +4 Restructuring, exceptional & other items (262) (164) Profit from operations 788 909 Underlying profit before tax2 915 931 -2 +5 Profit before tax 670 738 Discontinued operations – 642 Underlying EPS2+3 30.2p 31.6p -4 +2 Reported EPS 19.4p 56.4p Dividend per share (p) 15.5p 14.0p +11 1 Constant currency growth excludes the impact of exchange rate movements during the period. 2 Cadbury Schweppes believes that underlying profit from operations, underlying profit before tax, underlying earnings and underlying per share provide additional information on underlying trends to shareowners. The term underlying is not a defined term under IFRS, and may not therefore be comparable with similarly titled profit measurements reported by other companies. It is not intended to be a substitute for, or superior to, IFRS measurements of profit (see Note 1(y), page 94).