2004 Welcome to Bouneville, Presentation by Andrew Cosslettfiles.investis.com/Cadbury_ir/Reports/AnalystPresenApcos.pdf• c. 10,000 SKUs • Multiple business models • Uncoordinated

Andrew CosslettPresident, EMEA

Welcome to Bournville19th Century 21st Century

Cadbury Schweppes Goals & Priorities

• Re-align reward systems• Continue high CSR standards

5. Reinforce reputation with employees and society

• Ratchet up innovation• Hone people and systems

capabilities

4. Ensure our capabilities are best in class

• Integrate North America Beverages

• Integrate Europe Beverages

3. Profitably secure and grow regional beverages share

• Integrate Adams and “Beat the Model”

• Execute “Smart Variety”

2. Profitably and significantly increase global confectionery share

• Deliver annual contract• Execute “Fuel for Growth”

1. Deliver superior shareowner performance

CS EMEA• Participation in chocolate, sugar and gum

• Unique set of local, regional & global brands

Today’s Agenda

Simon Baldry

Louise Cooke & Mike Denyard

Ian Burrell & Mike Barrington

Factory Tour

Today’s Agenda

Rob Desatnick & Elaine Hindal

Jean-Marc Saubade

Ignasi Ricou

Strategic Framework

Expanding in Africa

Expanding in Africa

Developing FootholdMarkets

Developing FootholdMarkets

RegionalEfficiency

RegionalEfficiency

CategoryCapability

CategoryCapability

Driving Core Western EuropeanMarkets

Driving Core Western EuropeanMarkets

LeadershipLeadership

Smart V

ariety

Smart V

ariety

Smart V

ariety

EMEA Scale

• 33% Group’s sales

• 37% Operating assets

• 40% Employees

Re-organisation

Re-organisation

Re-organisation

Re-organisation

Re-organisation

• Ex Kraft Sugar &

Gum business France

• Kent Turkey

• Dandy

• UK Integration

• Adams

Re-organisation –Acquisition and Change Agenda

• c. 10,000 SKUs

• Multiple business models

• Uncoordinated supply chain

Re-organisation – Operating Issues

• Remarkable set of brands

• Multiple leadership positions

• Flexible manufacturing capability

• Experienced confectionery management

Re-organisation – Benefits

Organisation Progress

• Supply chain successfully separated

• 26 commercial units in slimmer structure

• Adams integration 100% - ‘Beating the Model’

• International moves and training focus

• New cross sourcing model

• Hardwiring logistics

• Organisation now in place

Category Capability

Sm

art V

arie

ty

Sm

art V

arie

ty

Sm

art V

arie

ty

RegionalEfficiency

Expandingin

Africa

DevelopingFootholdMarkets

DrivingCore

WesternEuropeanMarkets

Leadership

CategoryCapabilityCategoryCapability

Category Capability Sm

art V

arie

ty

Sm

art V

arie

ty

Sm

art V

arie

ty

RegionalEfficiency

Expandingin

Africa


DrivingCore


Leadership


Leadership Sm

art V

arie

ty

Sm

art V

arie

ty

Sm

art V

arie

ty

RegionalEfficiency

Expandingin

Africa


DrivingCore


Leadership

CategoryCapability

Chocolate

Sugar

Gum

3 4 3 1 0

6 0 0 0 0

9 0 0 0 8

CS Kraft Nestle Mars Wrigley

TOTAL 18 4 3 1 8

• EMEA Top 20 markets

Source: Euromonitor 2004

Icon Brands

• Local

• Regional

• Global

Sm

art V

arie

ty

Sm

art V

arie

ty

Sm

art V

arie

ty

RegionalEfficiency

Expandingin

Africa


DrivingCore


Leadership


0%

5%

10%

15%

20%

25%

30%

35%

Jan

99

July

99

Jan

00

July

00

Jan

01

July

01

Jan

02

July

02

Jan

03

July

03

Jan

04

July

04

Shar

e of

Mar

ket (

MAT

)

Wedel Milka Alpen Gold

Moulded Chocolate, Top 3 Players, Poland

Source: J/J AC Nielsen 2004

CS acquisition

CS acquisitionStrategy

implementation

Moulded Chocolate, Top 3 Players, Poland

Source: J/J AC Nielsen 2004

0%

5%

10%

15%

20%

25%

30%

35%

Jan

99

July

99

Jan

00

July

00

Jan

01

July

01

Jan

02

July

02

Jan

03

July

03

Jan

04

July

04

Shar

e of

Mar

ket (

MAT

)

Wedel Milka Alpen Gold

Innovation Capability• Global Head of S&T appointed

• Targeting 15% of NSV from innovation

Global S&TDavid Macnair

President EMEAAndrew Cosslett

Head of EMEA S&T

Gum & SugarLille / St Genest

ChocolateBournville

D&EJohannesburg

Local Teams Local Teams Local Teams

• EMEA S&T head appointed• New S&T structure

• Regional S&T ‘Community’

Regional Efficiency

Sm

art V

arie

ty

Sm

art V

arie

ty

Sm

art V

arie

ty

RegionalEfficiency

Expandingin

Africa


DrivingCore


Leadership

CategoryCapability

RegionalEfficiency

• FFG on track : £100m pa cost reduction 2007• Commercial structures simplified• Net reduction of over 1200 jobs• Global purchasing benefits• Optimising regional Supply Chain

Manchester Chesterfield

Regional Efficiency

• Successful Ireland Probe implementation

Sm

art V

arie

ty

Sm

art V

arie

ty

Sm

art V

arie

ty

RegionalEfficiency

Expandingin

Africa


DrivingCore


Leadership


Driving Core Western European Markets

Sm

art V

arie

ty

Sm

art V

arie

ty

Sm

art V

arie

ty

RegionalEfficiency

Expandingin

Africa


DrivingCore


Leadership

CategoryCapability

DrivingCore


Driving Core Western European Markets• ‘Lions Share’ of EMEA profit

Sm

art V

arie

ty

Sm

art V

arie

ty

Sm

art V

arie

ty

RegionalEfficiency

Expandingin

Africa


DrivingCore


Leadership


• CTB +3%, France +3.5% at half year

• Share position sound

Core Markets Share

Chocolate Sugar Gum TOTAL

UK -27.1 -0.134.2 +0.2 30.2 +0.1

Source: AC Neilsen Sept 04 MATGum (excludes bubblegum)

Core Markets Share


UK

France

-

5.7 +0.4 33.8* +0.2

27.1 -0.1

53.0 +3.4

34.2 +0.2 30.2 +0.1

16.7 +0.6

Source: AC Neilsen Sept 04 MATGum (excludes bubblegum)* Sugar Bags

Core Markets Share


UK

France

-

Ireland 33.2 -1.641.0 -0.5

5.7 +0.4 33.8* +0.2

27.1 -0.1

53.0 +3.4

34.2 +0.2 30.2 +0.1

16.7 +0.6

39.4 -0.7-

Source: AC Neilsen Sept 04 MATGum (excludes bubblegum)* Sugar Bags

Driving Core Western European Markets• ‘Lions Share’ of EMEA profit

Sm

art V

arie

ty

Sm

art V

arie

ty

Sm

art V

arie

ty

RegionalEfficiency

Expandingin

Africa


DrivingCore


Leadership


• CTB +3%, France +3.5% at half year

• Share position sound

• Trading trends

Lidl Variety Pack

Soft Discounters

Loi Galland

Expanding in Africa

Sm

art V

arie

ty

Sm

art V

arie

ty

Sm

art V

arie

ty

RegionalEfficiency

Expandingin

Africa


DrivingCore


Leadership

CategoryCapability

Expandingin

Africa

CountryOffices

Sales

Expanding in Africa

• Over 25% of EMEA sales in D&E1

Sm

art V

arie

ty

Sm

art V

arie

ty

Sm

art V

arie

ty

RegionalEfficiency

Expandingin

Africa


DrivingCore


Leadership


• 11% sales CAGR1

• 70 years in Africa

• 5 Hubs – South Africa, Nigeria, Egypt, Kenya and Morocco

• Extending sales reach

• Strengthening RTM

1 Figures exclude Nigeria, which is accounted for as an associate

Product Development in Africa

South Africa 8.5p

Nigeria 10p

Nigeria 4p

Egypt 4.5p

Egypt 0.5p

Investment in Africa

Bubba Plant

Chocki Plant

Egypt Moulded

• Access to European manufacturing capabilities

• Disposal of Moirs in South Africa completed

Oros Plant

Developing Foothold Markets

Sm

art V

arie

ty

Sm

art V

arie

ty

Sm

art V

arie

ty

RegionalEfficiency

Expandingin

Africa


DrivingCore


Leadership

CategoryCapability

DevelopingFoothold Markets

Developing Foothold Markets

• Leverage market from sales strength

• Halls – Denmark

• Cadbury – Portugal

• Russian growth

Sm

art V

arie

ty

Sm

art V

arie

ty

Sm

art V

arie

ty

RegionalEfficiency

Expandingin

Africa


DrivingCore


Leadership


Sm

art V

arie

ty

Sm

art V

arie

ty

Sm

art V

arie

ty

RegionalEfficiency

Expandingin

Africa


DrivingCore


Leadership

CategoryCapability

Turning the map a deeper purple

EMEA half year 2004 sales

+4%

-13%

+2%

Cadbury Schweppes branded

Other products

Total

Leading Brands Growth Sm

art V

arie

ty

Sm

art V

arie

ty

Sm

art V

arie

ty

RegionalEfficiency

Expandingin

Africa


DrivingCore


Leadership


Cadbury

5%5%

Poulain

12%12%

Wedel

9%9%

ChocolateHalls

16%16%

Bassetts

6%6%

Maynards

9%9%

Kent

16%16%

Sugar

Trident

10%10%

Hollywood

8%8%

Stimorol

3%3%

Gum

2004 Welcome to Bouneville, Presentation by Andrew Cosslettfiles.investis.com/Cadbury_ir/Reports/AnalystPresenApcos.pdf• c. 10,000 SKUs • Multiple business models • Uncoordinated

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