2005 Annual General Meeting Presentation with John...
Transcript of 2005 Annual General Meeting Presentation with John...
CS Share Price
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CS FTSE E300 Food Producers FTSE 100
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CS Dividend- Cumulative Growth vs RPI 2000 to 2004
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+10%
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CS dividend Cumulative RPI growth
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
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ual
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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
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row
th %
-10
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0
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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 3
Approve Directors’ Remuneration Report
For Against Withheld
1,119,775,115 35,079,279 19,127,466
Resolution 10
Authority to allot relevant securities
For Against Withheld
1,151,467,044 16,489,216 6,024,378
Resolution 11
Authority to disapply pre-emption rights
For Against Withheld
1,148,907,176 23,110,468 1,964,234
Resolution 12
Authority to purchase own shares
For Against Withheld
1,166,803,494 1,875,835 5,302,549