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Press releases

Cadbury Schweppes is holding an investor seminar in London today and New York tomorrow, to present:

• Our strategy and goals for 2007 and beyond;
• A new financial scorecard in which we commit to grow revenues, margins and return on invested capital over time, and to maintain an efficient balance sheet;
• A step up in dividends for 2006 and a commitment to grow dividends more in line with earnings;
• The launch of Trident gum, the world's fastest growing brand, in the UK market in 2007 (see separate press release).

Chief Executive Todd Stitzer said:

"Over the past three years we have delivered the fastest growth in a decade and top quartile shareowner returns by transforming our portfolio, culture and capabilities. I'm confident our team will exploit and expand our competitively advantaged confectionery and beverage businesses from 2007 and beyond to increase shareowner returns."

Key Achievements 2003-2006

Since 2003, we have re-positioned our product portfolio into faster growth confectionery and beverages areas and become the global leader in confectionery with a 9.9% market share. In beverages, we have driven our US carbonated soft drink share up by over 100 basis points. We have outperformed expectations of the Adams acquisition and successfully delivered Fuel for Growth, executing major cost reductions to fund increased investment behind growth. We have simplified our structure and increased centralised, co-ordinated decision-making. Cadbury Schweppes is now a stronger business: well positioned to drive growth and returns in the future.

Strategy for 2007 and beyond

The goals we are announcing today are focused on delivering superior shareowner returns. This includes funding further investment in revenue growth, increasing efficiency to underpin margin growth and continuing to optimise the Group's balance sheet.

Confectionery Strategy

As the world's largest confectionery company, Cadbury Schweppes is the only company to have a substantial market presence and leading brands across all three categories of chocolate, gum and candy. We now have the number one or two market share positions in many of the world's largest confectionery markets. Our goal is to be the biggest and best global confectionery business. We will achieve this by exploiting and expanding our strong brands, geographic presence and superior category positions, delivering fewer, faster, bigger and better innovations, and by selective bolt-on acquisitions. 

Beverages Strategy

In beverages, we have a regional concentration on North America and Australia, where we have a competitive advantage in both flavour carbonated soft drinks and in premium non-carbonated soft drinks. Our goal is to be the best regional beverage business. We will achieve this by further strengthening our route to market by integrating fully the recently acquired North American bottling businesses. In addition, we will continue to move our portfolio towards higher growth areas using our consumer insights and science & technology expertise to help us better exploit these opportunities.

Capabilities Strategy

To deliver our plans we will continue to invest in science & technology and commercial capabilities, using our new global centres of science & technology excellence to increase the rate and quality of our innovation. We will also further enhance our supply chain, IT and shared business services to improve efficiency and reduce costs. In supply chain, we will aim to improve flexibility, productivity, cost and working capital performance.

Financial Scorecard

Our new financial scorecard from 2007 is:

• Revenue growth between 3% and 5% per annum.
  
• Growth in operating margins over time through cost reduction and efficiency initiatives, while continuing to invest behind growth.
  
  From 2007, ongoing restructuring charges of around 1% of revenue, will be included in underlying operating profits.  Material charges, principally related to M&A activity, will continue to be excluded from underlying operating profits as will brand intangible amortisation, non-trading items and the volatility introduced from IAS 39 fair value accounting
• An increased return on invested capital (ROIC) over time through disciplined resource allocation. The Group will report on ROIC annually and will propose that ROIC becomes one of the measures in its long-term management incentive programmes.
  
• A dividend policy whereby dividends are more in line with earnings. In 2006, the Board is likely to recommend a 10% increase in the Group's final dividend to 9.9 pence, bringing the increase for 2006 as a whole to 8%.
  
• Maintaining an efficient balance sheet.

About Cadbury Schweppes

Cadbury Schweppes is the world's largest confectionery business and has a strong regional beverages presence in North America and in Australia. With origins stretching back over 200 years, today Cadbury Schweppes' products - which include brands such as Cadbury, Schweppes, Halls, Trident, Dr Pepper, Snapple, Trebor, Dentyne, Bubblicious and Bassett - are enjoyed in almost every country around the world.  The Group employs around 70,000 people. 

Seminar Presentations and Webcast

Presentations will be given by CEO Todd Stitzer, CFO Ken Hanna, and senior management of Cadbury Schweppes' four regions.

The London seminar presentations will be webcast live on the Group's website www.cadburyschweppes.com from approximately 8am (GMT) today. A dedicated seminar webpage is now available in the investor centre of the Group's website. Copies of the presentation slides will be available on this webpage from 7.15am (GMT) today and transcripts of the key speeches will be available from 2pm (GMT) tomorrow.

Media Teleconference Call & Briefing

Teleconferences for media will take place at 7.20am (GMT) today, see details below. There will also be a media briefing at 1.30pm at the Renaissance Chancery Court Hotel, High Holborn, London, WC1V 7EN.

Forward Looking Statements

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 1934.  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 which 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 material 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.