2007 Interim Results 1 August 2007

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2 Interim Results 1 August 2007 This material may be deemed to include forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of These forward-looking statements are only predictions and you should not rely unduly on them. Actual results might differ materially from those projected in any such forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause our or our industry s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by the forward-looking statements. In evaluating forward-looking statements, which are generally identifiable by use of the words may, will, should, expect, anticipate, estimate, believe, intend or project or the negative of these words or other variations on these words or comparable terminology, you should consider various factors including the risks outlined in our Form 20-F filed with the SEC. Although we believe the expectations reflected in forward-looking statements are reasonable we cannot guarantee future results, levels of activity, performance or achievements. This presentation should be viewed in conjunction with our periodic interim and annual reports and registration statements filed with the Securities and Exchange Commission, copies of which are available from Cadbury Schweppes plc, 25 Berkeley Square, London W1J 6HB, UK.

3 Results Overview and Operating Review Todd Stitzer Chief Executive Officer

4 Today s Agenda 4 Overview Half Year Regional Performance Review Half Year Financial Review 2007 Full Year Outlook Conclusion

5 Half Year Overview Good first half performance from continuing businesses Announced separation of Americas Beverages Ambitious new confectionery plans Bolt-on acquisitions to strengthen existing confectionery positions and enter new emerging markets Exit low-growth non-core businesses Americas Beverages sale process extended

6 6 Half Year Performance Highlights Revenue +6%, driven by double-digit growth from gum and emerging markets Strengthened performance in developed markets Higher contribution from pricing Margin reflects investment behind successful growth initiatives Top 13 brands +9% Focus Markets +7% Top Global Customers +8%

7 Cadbury plc... New Regional Organisation Revenue Contribution 2006 Profit Contribution* Asia Pacific 25% Americas 27% Asia Pacific 25% Americas 32% Europe 17% Europe 14% BIMA 31% BIMA 29% * % contribution before central costs

8 Britain, Ireland, Middle East and Africa 8 FY 2006 m % group* Revenue 1,500 31% Profit from Ops % Margin 12.4% * Before central costs #1 confectionery business in the region Primarily heritage Cadbury businesses Significant gum businesses in South Africa and Egypt: entry into UK gum with Trident 80% of revenues from Britain and Ireland 20% from emerging markets in Middle East and Africa

9 9 Britain, Ireland, Middle East and Africa Solid Underlying Revenue Growth Half Year vs 2006 (constant FX) m Underlying Acq/disp Bus. Imp. Cost Total Revenues % +2% - +4% Underlying Profit from Ops 62-27% - -3% -30% Underlying revenues +2%: +5% adjusting for Nigeria phasing Revenues driven by successful gum launch in Britain and emerging markets (+19%) Britain revenues +2% Strong growth in all categories in South Africa Profit and margin decline reflects investment in gum and treatment of Nigeria

10 10 Successful Launch of Gum in Britain Second wave of activity: new flavour and packaging launches Gum Market Growth and Trident Share Trident Market Share % Gum Market Growth % 0 0 Nov 2006 Market Growth CS Share July 2007 Source: IRI

11 Market Growing And Share Trends Beginning to Improve in 11 Market returned to growth in 2007 (+5% YTD) Cycling impact of hot summer and recall CS share trends strengthening +120bps in last 4 weeks Britain Confectionery Market Growth 2007 To 14 July YTD Last 4 wks CS Share Change 2007 To 14 July YTD Last 4 wks Chocolate Chocolate Candy Candy Gum Gum +1,070 +1,160 Total Total Source: Nielsen to 14 July

12 Europe 12 FY 2006 m % group* Revenue % Profit from Ops 90 14% Margin 11.0% * Before central costs Includes all our businesses in W and E Europe, Russia and Turkey Largest market is France Revenues split 50:50 developed / emerging markets Top 10 brands = 65% of revenue Primarily gum and pocket candy Chocolate presence mainly in Poland and now Romania

13 Europe: Strong Performances Across the Region 13 Half Year vs 2006 (constant FX) m Underlying Acq/disp Bus. Imp. Cost Total Revenues % -2% - +5% Underlying Profit from Ops % +1% -9% +4% Strong performances across the region driven by gum and Halls Halls +29%: growth in Spain and Poland, and launch in France Gum revenues +13%: expansion of centre-filled and packaging innovation Stimorol growth strong throughout northern Europe Gum growth and Halls launch in France offset by candy rationalisation and weak chocolate performance Russia revenues +c.20% with losses reduced: gum share ahead and improved route to market efficiencies

14 Americas 14 FY 2006 m % group* Revenue 1,330 27% Profit from Ops % Margin 15.6% * Before central costs Includes all our businesses North and Latin America 55% developed / 45% emerging markets #1 confectionery business in Latin America Primarily a gum and pocket candy business Significant Cadbury chocolate presence in Canada Highly concentrated brand portfolio: top 4 brands = 65% of revenues

15 Americas: Growth and Leverage Drive Excellent Profit Performance 15 Half Year vs 2006 (constant FX) m Underlying Acq/disp Bus. Imp. Cost Total Revenues % -1% - +11% Underlying Profit from Ops % - -1% +38% Strong revenue growth in developed (+9%) and emerging markets (+15%) Significant profit and margin growth from leverage, focus on profitable growth and pricing Mexico +13% as Trident Splash begins Latin Americas roll-out Exit from non-core business in Canada: core business +5% with strong profit growth US revenues +13% driven by gum, Halls and candy

16 Successful Pricing Initiatives in North America 16 96c $ % US Gum Market YTD Last 4 Weeks Market Growth +8% +6% +9% Cadbury Adams - Share 31.2% 33.6% 35.0% - Share Change +300bps +320bps +410bps Source: IRI

17 Asia Pacific 17 FY 2006 m % group* Revenue 1,205 25% Profit from Ops % Margin 13.7% * Before central costs Includes all our businesses in Australasia and Asia 80% developed: 20% emerging markets Market leading heritage chocolate businesses in Australia, New Zealand, India and Malaysia Significant gum and pocket candy presence in South East Asia and Japan Small, loss making business in China

18 Asia Pacific: Solid Performance 18 Half Year vs 2006 (constant FX) m Underlying Acq/disp Bus. Imp. Cost Total Revenues % % Underlying Profit from Ops 46 +8% - -18% -10% Revenue growth driven by emerging markets +12%: shares ahead in most markets Developed markets +3% due to slow-start in Australia confectionery Australia confectionery flat: hot summer and disruption at major retail customer Australia beverages strongly ahead with market and share growing South East Asia impacted by economic and political uncertainty in Thailand New strategy underway in China Excellent performance in India up >20%; bubblegum launch in July

19 Financial Review Ken Hanna Chief Financial Officer

20 Agenda 20 Americas Beverages update Underlying revenue growth and margin analyses Income statement Cash flow Outlook 2007

21 Americas Beverages Update 21 Performance in line with expectations; revenue growth +5% YTD CSD share up 70 bps; non-csd share up 20 bps Investing behind new product launches - Snapple super premium and mainstream teas - Accelerade Price increases to cover higher input costs Trading margin down reflecting launch investments Sale process ongoing extended timetable due to debt market volatility

22 Base Business Revenue Growth: Regional Performance 22 27m +5% 140m +6% 74m +12% Asia Pacific 25m +7% 14m +2% Americas Europe BIMA Group

23 Confectionery Revenue Growth 23 10% 6% 50% of growth 4% 50% of growth Developed Emerging Group Continuing double-digit growth from emerging markets

24 Underlying Operating Margin (1) % +70bps (60)bps (40)bps 8.1% UK gum FfG savings & leverage Growth investment Nigeria impact H H Constant FX

25 Underlying Operating Margin (2) % (50)bps 7.6% (40)bps 7.2% Ongoing business improvement costs Exchange effect H Constant FX H Constant FX incl ongoing costs H Actual FX

26 Growth-Related Investment 26 Investment in UK gum Other marketing spend c 10m c 10m - UK chocolate - Centre-filled gum in Europe - Stride in US Total marketing: sales Incremental growth investment +20bps c 10m - New product listings and increased S&T resources - Strengthening RTM in Latin America & Russia

27 Summary Income Statement 27 Half Year ( m) Re-presented # Revenue 2,296 2,326 Underlying profit from operations* Associates 3 5 Underlying net finance cost (72) (63) Underlying profit before tax Restructuring (27) (34) Amortisation and impairment (2) (15) Non-trading items 7 (2) UK product recall (7) - IAS 39 adjustment Reported profit before tax Taxation (27) (35) Discontinued operations Minorities (3) - Reported earnings * Profit from operations before associates, intangibles amortisation, goodwill impairment, restructuring, non-trading items, UK product recall and IAS39 adjustment # 2006 results have been re-presented to include Americas Beverages within discontinued operations

28 Finance Costs 28 Half year ( m) Re-presented # Interest income 17 6 Interest expense (104) (84) Underlying interest on net debt (87) (78) Average net interest rate 4.8% 5.2% Net interest charge (87) (78) Pension financing credit Underlying net finance cost (72) (63) # 2006 results have been re-presented to include Americas Beverages within discontinued operations

29 Restructuring Costs 29 Half year ( m) Re-presented # Underlying profit from operations Business improvement costs - (12) Restructuring Fuel for Growth (27) - Vision into Action - (22) Americas Beverages separation costs - (4) Gumlink - (8) Total spend (27) (46) Treatment of restructuring from 2007 Expect business improvement cost of c0.5% of revenue in underlying from 2007 # 2006 results have been re-presented to include Americas Beverages within discontinued operations

30 Discontinued Operations 30 Half year ( m) Re-presented # Underlying Americas Beverages post-tax trading profits Other post-tax trading profits 1 - Outside underlying Profit on disposal of Europe Beverages Other profit/(loss) on disposal 9 (14) Other* 14 (8) Total reported * Restructuring, intangibles amortisation, goodwill impairment, IAS39 adjustment and non-trading items # 2006 results have been re-presented to include Americas Beverages within discontinued operations

31 Earnings Per Share 31 p/share # Growth Underlying EPS 13.3p 13.1p (1%) Components Inclusion of business improvement costs (4%) Increase in number of shares (1%) Operating performance Americas Beverages -% M&A (2%) Operating performance Cadbury plc 6% # At constant currency

32 32 Dividends H1 dividend 5p/share Profile remains approx one third interim and two thirds final Full year dividend per share at level consistent with current expectations for existing CS Group Share consolidation expected as part of return of capital following beverages disposal Full year dividend likely to be on a smaller number of shares

33 Cash Flow 33 Half Year ( m) Underlying profit from operations* Restructuring (29) (41) Depreciation Other items (17) (20) Working capital (233) (155) Cash generated from operations Capital expenditure (149) (178) Disposal of fixed assets Interest (104) (81) Tax (excluding disposals) (145) (138) Net associates/minorities dividends 3 - Pension funding Free cash flow (43) 2 * Profit from operations before associates, intangibles amortisation, goodwill impairment, restructuring, non-trading items, UK product recall and IAS39 adjustment Underlying Profit from Operations includes profit from discontinued operations

34 Working Capital 34 Average Working Capital Days H1 06 H Cadbury plc Americas Beverages Total Group Significant progress across Group Confectionery average working capital days over 20% lower than in H1 06

35 Disciplined Capital Allocation 35 Summary of M&A Activity m Disposals Cadbury Italy Allan Candy Cottees Foods Disposal proceeds c50m Acquisitions Intergum Kandia-Excelent Sansei Acquisition spend c340m

36 Balance Sheet Efficiency 36 Dec 2006 Jun 2007 Net debt m 2,909m 3,084m Net debt/ebitda # 2.2x 2.4x EBITDA # /Net interest 7.5x 7.9x EBIT/Net interest 6.0x 6.0x Total group net debt includes 3,062m from continuing and 22m from Americas Beverages Ratios calculated for the total group on a rolling 12 month basis # EBITDA is defined as earnings before interest, tax, depreciation, intangibles amortisation, goodwill impairment, restructuring costs, non-trading items, UK product recall, IAS 39 adjustment and excludes associates

37 2007 Outlook 37 Regional overview Dairy costs - Two thirds liquid; one third powdered - Average 20% cost increase - Pricing actions anticipated

38 BIMA Factors 38 UK business - Full year of gum launch - Lapping recall and hot summer in H Sheffield flood Nigeria lapping full year accounting correction in H2 06 Continuing strong momentum from Africa/Middle East

39 Europe Factors 39 Strong gum category momentum Good momentum and improving results in Russia Integrating Intergum and Kandia acquisitions

40 Americas Factors 40 Strong performance in H1 Excellent category and share momentum Significant competitor activity in H2 behind new launches

41 Asia Pacific Factors 41 Making good progress Withdrawal from co-packing arrangement Aggressive ANZ retailer environment Political & economic uncertainty in Thailand Strong momentum from other emerging markets

42 Conclusion 42 Key guidance factors since June 19 - Increase in dairy costs - Flooding in Sheffield Material SG&A cost reductions start in 2008 Continuing to invest behind growth Unlikely to report margin progression for the full year Business momentum remains strong

43 Supplementary Information

44 Sales Analysis 44 Half year ( m) 2006 Increased activity M&A Exchange effects 2007 BIMA (23) 717 Europe (7) (10) 391 EMEA 1, (33) 1,108 Americas (4) (60) 651 Asia Pacific (17) 563 Central Total Group 2, (110) 2,326

45 45 Underlying Profit from Operations* Half year ( m) 2006 Increased activity M&A Exchange effects 2007 BIMA 94 (25) - (4) 65 Europe (1) 37 EMEA 128 (21) - (5) 102 Americas (12) 116 Asia Pacific (1) 55 Central costs (80) (13) - - (93) Total pre-bus improvement (18) 180 Business improvement - (13) - 1 (12) Total post-bus improvement 192 (7) - (17) 168 * Profit from operations before associates, intangibles amortisation, goodwill impairment, non-trading items and IAS39 adjustment

46 Profit From Operations Excluding Business Improvement Costs m Underlying Business improvement Underlying exbusiness improvement BIMA Europe EMEA Americas Asia Pacific Central Costs (89) (4) (93) Underlying profit from operations** ** Profit from operations before associates, intangibles amortisation, goodwill impairment, non-trading items and IAS39 adjustment

47 Re-presented FY06 Income Statement Full year ( m) Re-presented # 2006 Revenue 4,861 Underlying profit from operations* 489 Associates 8 Net finance cost (146) Underlying profit before tax ## 351 Restructuring (112) Amortisation and impairment (19) Non-trading items 23 UK product recall (30) Nigeria adjustment (23) IAS 39 adjustment (8) Reported profit before tax 182 Taxation (64) Discontinued operations 1,047 Minorities 4 Reported earnings 1, * Profit from operations before associates, intangibles amortisation, goodwill impairment, restructuring, non-trading items, UK product recall and IAS39 adjustment ## Excludes intangibles amortisation, goodwill impairment, restructuring, non-trading items, UK product recall, Nigeria adjustment and IAS 39 adjustment # 2006 results have been re-presented to include Americas Beverages within discontinued operations

48 Historical Financial Performance 48 m Revenue BIMA 1,370 1,420 1,500 Europe EMEA 2,173 2,257 2,318 Underlying operating profit BIMA n/a Europe n/a EMEA restated for discontinuation of Bromor (sold in 2006)

49 Overview of Technical Guidance 49 FY 2007 Fuel for Growth savings: 80m (excl Am Bevs) Ongoing business improvement cost: c0.5% of revenue Restructuring: circa 100m Capital expenditure: 350m (excl Am Bevs) Underlying net interest rate: 5.2%-5.4% Underlying tax rate: circa 30% Nigeria minority interest nil

50 50 M&A Activity Non-Core Disposals Completed Piasten (Germany) June 2005 Holland House Cooking Wines (US) December 2005 Grandma s Molasses (US) January 2006 Europe Beverages Division February 2006 Slush Puppie (US) April 2006 Syria Beverages April 2006 Bromor (S. Africa) August 2006 Cadbury Italy February 2007 Allan Candy (Canada) June 2007 Cottees Foods (Australia) July 2007 Announced Monkhill (UK) Americas Beverages (US)

51 M&A Activity Confectionery Acquisitions 51 Completed Green & Black s (UK) May 2005 Cadbury Nigeria (majority) February % Kent (Turkey) April 2006 Dan Products (S.Africa) June 2006 Kandia-Excelent (Romania) June 2007 Sansei Foods (Japan) July 2007 Announced Intergum (Turkey)

52 Non-Trading Items 52 Half year ( m) Re-presented # Disposal of properties 7 14 Disposal of non-core businesses - (4) Impairment of China property, plant and equipment - (12) Reported 7 (2) # 2006 results have been re-presented to include Americas Beverages within discontinued operations

53 Balance Sheet 53 Half year ( m) Non-current assets 7,958 4,372 Net working capital Assets held for sale less associated liabilities ,851 Net retirement benefit liability (216) (66) Provisions and deferred tax liabilities (1,049) (387) Net borrowings continuing group (3,436) (3,062) Net assets 3,551 3,803 Ordinary shareholders funds 3,514 3,793 Minority interests Total capital employed 3,551 3,803

54 Borrowing Profile 54 Half year Debt maturity profile Less than 1 year 1-3 years More than 3 years Fixed rate debt: 30% 37% 33% 43% 38% 19% % total debt 72% 64% Average length of fix 3.2yrs 2.6yrs Average interest rate 4.7% 4.4% Group average interest rate 4.8% 5.2%

55 Sales, Profits and Borrowings by Currency 55 Half year ( m) 2007 % Sales generated in: US dollars % Sterling % Euro % Australian dollars % Other % Underlying operating profit* generated in: US dollars 39 23% Sterling (53) (31%) Euro 40 24% Australian dollars 31 18% Other % Net borrowing held in: Dollar block 2,302 75% Sterling % Euro % Other (254) (8%) * Profit from operations before associates, intangibles amortisation, goodwill impairment, restructuring, non-trading items and IAS39 adjustment

56 Exchange Rates 56 Rate vs Sterling H average H average % mvt average US $ % Canadian $ % Euro % Australian $ % South African Rand % Mexican Peso %

57 Closing Remarks Todd Stitzer Chief Executive Officer

58 58 Summary and Conclusion Separation of beverages to focus on confectionery Significant under-exploited confectionery potential Step change in margins by reconfiguring confectionery business model Focus on delivering aggressive SG&A reductions in 2008 Revenues continue to benefit from investment in growth