2005 annual general meeting presentation with john...

John SunderlandChairman

Dr Wolfgang Berndt

Baroness Wilcox

Rosemary Thorne

Roger Carr

Todd Stitzer

Mike Clark

Ken Hanna

David Thompson

Bob Stack

Rick Braddock

CS Share Price

100

120

140

160

80

60

40

CS FTSE E300 Food Producers FTSE 100

Jan-

00

y-

Sep-

00

n-01

y-Se

p-01

n-0

y-0

Sep- n-

0

y-0

Sep-

03

n-04

y-Se

p- n-05

y-

Ma

00

Ja Ma

01

Ja

2M

a

2 02Ja

3M

a

3

Ja Ma

04 04Ja M

a05

CS Dividend- Cumulative Growth vs RPI 2000 to 2004

30.0%13

+5%

+10%

10.5p

12.5p

CS

div

iden

d i

n p

'sh

are +25%

25.0%12.512.0p

+20%

10.0%

15.0%

RP

I g

row

th20.0%1211.5p

+15%11.5

11.0p

11

5.0%10.5

0.0%10

2000 2001 2002 2003 2004

CS dividend Cumulative RPI growth

Todd StitzerChief Executive Officer

Goals and 2004 Priorities

7. Ratchet up innovation

8. Hone people and systems capabilities

4. Ensure our capabilities are best

in class

5. Integrate North America Beverages

6. Integrate Europe Beverages

3. Profitably secure and grow

regional beverages share

2. Profitably and significantly

increase global confectionery

share

2004 – 2007 Goals 2004 Priorities1. Deliver annual contract

2. Execute “Fuel for Growth”

1. Deliver superior shareowner

performance

3. Integrate Adams and “Beat the Model”

4. Execute “Smart Variety”

5. Reinforce reputation with

employees and society

9. Motivate, develop & reward our people

10. Continue high CSR standards

Superior Shareowner PerformanceIn

crease

in

Avera

ge T

SR

(%

)

60Peer Group 2004 Average TSR Performance

50 Cadbury Schweppes

TSR +27%40

30

20

10

0

-10

Delivering Annual Contract

2004 Results Delivered Within Goal Ranges

2004 – 2007 2004Goals

Underlying sales growth 3% - 5% 3.8%

Operating margins +50 – 75bps +50bps

Free Cash flow £1.5bn over £265m

4 years

Execute Fuel For Growth

• £400m of annual cost savings by 2007

• Cumulative savings to date of £100m

• Investment to deliver reduced by £100m (to £800m)

Profitably and SignificantlyGrowing Confectionery Share

• 2004 confectionery sales ahead by 6%

• Grew or maintained share in 11 of 14 top markets

• Adams exceeding our expectations

• Smart variety and innovation driving growth

Continued Growth in the UK:Cadbury Trebor Bassett

Sales Growth in 2004

3.5%

CTB

3.5%3.1%

#3competitor

#2competitorMarket

-3.1%

Source: Retail sales value per Nielsen 53 weeks to December 2004

Strong Power Brand Sales Growthin the Americas

2004 Americas Confectionery Sales Growth +11%

Dentyne+18%Trident

+22%

Halls+5%

Bubbas+7%

Revitalising Adams in the United StatesM

ovin

g A

vera

ge A

nn

ual

Sale

s G

row

th (

%)

-2

0

2

4

6

8

10

Sep 01 Dec 04

Acquisition of Adams

Secure and Grow Regional Beverages

• 2004 beverages sales ahead by 2%

• Recovery in US carbonates and Australian beverages

• Continued strong performance in Mexico

• Stage set for recovery in US non-carbonates, France and Spain

Outperforming the US Carbonates Market

• Total US carbonates up 2%

• Dr Pepper up 3%; Diets up 19%

Vo

lum

e G

row

th %

-10

-5

0

5

10

15

20

25

H1 03 H2 03 H1 04 H2 04

Diet Dr Pepper

Regular Dr Pepper

Growing Schweppes in FranceV

olu

me G

row

th (

%)

0

0.5

1.0

1.5

2.0

2003 2004

Schweppes Fruits Range

Schweppes Agrum

Best in Class Capabilities

• Raising capabilities: senior external hires

• Successful systems implementations

• Innovation raised to 9% of sales (from 6% in 2003)

Innovation at Cadbury Trebor Bassett

Sales from New Products Launched in 2004

£19m

£56m

£28m

CTB #2competitor

#3competitor

Source: Retail sales value per Nielsen 53 weeks to December 2004

Reinforcing Our Reputation

• Employee survey: 95% proud to work at Cadbury Schweppes

• External recognition included:

- “Britain’s Most Admired Company” – Management Today

- Wedel: Poland’s “Most valued/ trusted brand”

- Australia: Woolworth’s “Supplier of the Year”

2005 Outlook

• Good sales momentum in confectionery and beverages

• Higher marketing spend

• Increased investment in information systems and commercial capabilities

• First half margins unchanged

• Expect full year results within financial goal ranges

Conclusion

• 2004: a good year for Cadbury Schweppes

• Excellent progress on goals and priorities

• Built momentum in beverages and confectionery

• Successfully integrated Adams

• Delivered cost reduction programmes

• Good start to 2005

Resolution 1

Approval of Financial Statements

Resolution 1

Approval of Financial Statements

For Against Withheld

1,145,025,728 829,584 28,126,566

Resolution 2

2004 Final Dividend


1,168,821,801 148,245 5,011,832

Resolution 3

Approve Directors’ Remuneration Report


1,119,775,115 35,079,279 19,127,466

Resolution 4

Re-appoint Wolfgang Berndt


1,167,325,668 1,465,244 5,190,966

Resolution 5

Re-appoint Bob Stack


1,165,536,211 3,244,504 5,201,163

Resolution 6

Re-appoint Rosemary Thorne


1,167,253,698 1,494,721 5,232,527

Resolution 7

Re-appoint Baroness Wilcox


1,167,089,341 16,588,564 5,233,973

Resolution 8

Re-appoint Auditors


1,152,571,873 8,857,637 12,552,367

Resolution 9

Remuneration of Auditors


1,166,021,858 2,630,228 5,329,792

Resolution 10

Authority to allot relevant securities


1,151,467,044 16,489,216 6,024,378

Resolution 11

Authority to disapply pre-emption rights


1,148,907,176 23,110,468 1,964,234

Resolution 12

Authority to purchase own shares


1,166,803,494 1,875,835 5,302,549

2005 annual general meeting presentation with john...

Documents