workingtogether

to create

brands

peoplelove

Fact File 2002/3

ourbrands

Cadbury Schinternationaconfectionerloved brandsworldwide. Hour top sellin

hweppes is a majoral beverage andry company, selling muchs in over 200 countriesHere we show some ofng brands.

workingtogether

b

createto

brands

e

peoplelove

Europeanbeverages

Cadbury Schweppes’ origins go back over 200

years. Jacob Schweppe perfected his process for

manufacturing mineral water in Geneva in 1783;

John Cadbury first started selling tea and coffee

in 1824 in Birmingham. Cocoa and chocolate,

initially incidental, became Cadbury’s main business

within a few years.

The two companies – Cadbury and Schweppes –

merged in 1969 and since then we have expanded

our business worldwide. The acquisition of

Dr Pepper/Seven Up in 1995, our biggest step

since the merger, transformed our opportunities

in beverages and made the Americas the most

profitable region for us. In 2000 we extended

our position in this market further through the

acquisition of Snapple. We have developed our

chewing gum portfolio through the acquisition

of Hollywood in France in 2000, Dandy, based

in Denmark, in 2002 and, most recently, Adams,

our biggest acquisition ever.

a leading brand in the profitable and high growth

premium ready-to-drink tea and juice sector of

the beverage market.

Our Mexico Beverages business, whose major

brands include the Peñafiel water range and

carbonated soft drinks brands Squirt and Crush,

will also join this regional unit from 2004.

americasconfectionery

In the Middle East we sell Cadbury branded

products as well as Bim Bim in Egypt. In Africa we

have operations across the continent, although our

main activity is focused in South Africa where we

are number one in confectionery as well as owning

a foods and beverages business, Bromor Foods.

Our key markets in this region are France, Spain

WorkingTogether

Americasbeverages Europe,

middle eastand africa

confectionery

Asiapacific

gg q

Organisation structureCadbury Schweppes introduced a new, simpler

organisation structure in February 2003,

designed to clarify accountability and enable

swifter decision-making. Five new regions are

supported by five staff functions. The new global

leadership team of ten key executives will report

to the CEO to drive our growth and efficiency

programmes as well as various integration

programmes.

Our core beverages market is the US, the largest

soft drinks market in the world. As well as

carbonated soft drinks we offer a broad portfolio

of still drinks, juices and water. We are combining

our Dr Pepper/Seven Up (DPSU), Mott’s and

Snapple businesses into one new refreshment

beverages company. This will generate cost savings

as well as opportunities for growing revenue as

we broaden our distribution reach across our

combined portfolio. DPSU’s brands include

Dr Pepper, 7 UP, Schweppes, Canada Dry, A&W,

Hawaiian Punch, Squirt and Slush Puppie. Licensed

products include Sunkist, Country Time and

Welch’s. DPSU operates as a licensor, selling

concentrate to bottling and distribution operations

including Dr Pepper/Seven Up Bottling Group, an

independent bottling company in which we have a

40% interest.

Mott’s produces Mott’s apple sauce and juice

brands, Clamato, Hawaiian Punch and a variety

of speciality products. Snapple Beverage Group

is a premium beverage company whose brands

include Snapple, Mistic, Stewart’s, Orangina,

Yoo-Hoo and Nantucket Nectars. Snapple is

We are combining our existing operations in

Canada, the US and Argentina with the Adams

confectionery companies in the Americas. 75%

of Adams’ business comes from this region, with

Brazil and Mexico particularly important. In the

US the Cadbury, Peter Paul and York brands are

sold under licence. Cadbury Schweppes also

has manufacturing businesses in Canada and

Argentina, and distribution operations in the US

and Mexico. Key Cadbury Schweppes brands sold

in the region include Cadbury, Fry’s, Allan, Fuzzy

Peach, Swedish Fish, Sour Patch Kids, Sharps, Stani,

Beldent, Bazooka, Mantecol and Pascall.

Our major confectionery operation combines our

Great Britain & Ireland, European and the majority

of our current Africa, India and Middle East

business units. Our largest market in this region is

the UK, where we sell brands under the Cadbury,

Trebor, Bassett’s, Fry’s, Maynards, Sharps, Barratt

and Butterkist names. Our famous portfolio

includes the ‘moulded’ chocolate range (Cadbury’s

Dairy Milk and its variants), TimeOut, Flake, Dream,

Crunchie, Twirl, Caramel, Cadbury’s Easter Egg

range, Roses, Miniature Heroes, Eclairs, Trebor

Softmints, Trebor 24-7, Bassett’s Liquorice Allsorts

and Maynards Wine Gums.

In continental Europe our key confectionery brands

include Poulain, Hollywood and La Pie Qui Chante

in France, Wedel in Poland, Dulciora in Spain,

Cadbury in Russia, Stimorol across Europe, and the

chewing gums V6 in northern and western Europe

and Dirol in eastern Europe. In Turkey we are the

leading sugar confectionery company with Kent,

whose brands include Miss, Elegan and Jelibon and

Relax gum.

y g p

and Germany, the largest soft drinks market in

Europe. We sell carbonated soft drinks, mineral

waters and still drinks and our principal brands

include Schweppes, Orangina, La Casera,

Apollinaris, Oasis, TriNa and Pampryl. We have

bottling and partnership operations and license

our brands in other countries in this region.

We have confectionery businesses in Australia,

New Zealand, Malaysia, Indonesia and China and

a food and beverages business in Australia,

Schweppes Cottee’s. We are also adding India and

Pakistan to this region. Throughout this region we

sell Cadbury branded products, as well as Trebor

and Pascall sugar confectionery, and the Sportlife

chewing gum brand in China. In the Australian

beverages market we sell a range of products

including carbonated soft drinks, fruit juices

and fruit flavoured drinks, water and flavoured

dairy beverages under brand names including

Schweppes, Solo, Spring Valley and Wave. We

are also licensed to distribute some of PepsiCo’s

brands: Pepsi, Mountain Dew and Gatorade.

Financial Highlights2002 2001 %

Sales £m 5,298 4,960 + 7

Underlying Operating Profit*†

£m 1,041 992 + 5

Underlying Profit Before Tax* £m 935 886 + 6

Underlying EPS* pence 32.0 30.0 + 7

Basic EPS pence 27.4 27.0 + 1

Dividends per share pence 11.5 11.0 + 5

*Excludes goodwill amortisation, major restructuring charges and disposal gains/losses† Includes associates

Strategic developmentOur governing objective is growth in shareowner

value. In pursuit of this, our strategy over the last six

years has been to focus on developing robust and

sustainable regional positions in the markets in

which we operate. We have done this through

organic growth and by acquisition, in order to

broaden the markets in which we participate

and to widen our portfolio, so reducing our

dependence on carbonated beverages and

chocolate.

Robust and sustainable Six years ago our beverage business had 77% of its

sales in carbonated beverages and operated on a

global basis. Today our refreshment beverages

portfolio ranges from still drinks, juices and water

to carbonated, with the latter now only

representing 56% of that total. Today we operate

in three main geographies – North America,

Europe and Australia. And in most of these markets

we have pushed our market shares close to 20%.

We are still number three, but a much stronger

number three than we were six years ago, with a

strengthened route to market.

In confectionery, we have evolved from a reliance

on chocolate to one where we will have a full

range of confectionery products encompassing

chocolate, sugar, medicated and functional

confectionery and chewing gum. Following the

acquisition of Adams, Cadbury Schweppes

will be a global operator in a very strong

competitive position with huge potential to

cross-sell our different portfolios in a great variety

of markets.

Acquisitions2002 saw this programme continue with a series

of acquisitions both in beverages and

confectionery. In beverages we acquired Squirt in

Mexico, Nantucket Nectars in the US, consolidating

our premium juice business, and purchased full

control of our Apollinaris Schweppes joint venture

in Germany, Europe’s largest soft drinks market.

In confectionery we bought out most of the

minority shareholders in Cadbury India, one of our

key developing markets. We acquired Kent, Turkey’s

leading sugar confectionery business and a major

part of our expanding European confectionery

business. And in Denmark we bought Dandy,

consolidating our position as number two in the

overall European chewing gum market.

The total spent on these and other value creating

acquisitions during the year amounted to

£628 million. Finally, we made a successful offer to

purchase the Adams confectionery business, which

will make us the world’s leading confectionery

company.

2002 overview2002 was another good year for Cadbury

Schweppes. Once again we exceeded our financial

targets for both underlying earnings growth and

generation of free cash flow. At constant exchange

rates underlying earnings rose 11% and free cash

flow was £315 million. A highlight of the year was

the strong growth of our core confectionery

operations, benefiting from recent years’ high

levels of investment in growth and efficiency

projects.

Adams transforms the scale of our confectionery

business, making us leader of the $100 billion

global confectionery market, leader of the fast

growing $10 billion ‘functional’ confectionery

market and a strong number two in the gum

market. Combined, Cadbury Schweppes and

Adams will be the only global player able to meet

the full range of consumers’ confectionery desires

– chocolate, sugar and gum.

North, Central and South America constitute 75%

of Adams’ sales. Developing markets, principally

Latin America but also Europe, Africa, the Middle

East and Asia, are also represented. This strongly

complements our leading confectionery businesses

in the Commonwealth and Europe.

GrowthFour brands account for over 70% of Adams’ sales:

• Halls, the leading global sugar confectionery

brand, is also the number one medicated

confectionery brand with retail sales of nearly

$700 million.

• Trident is currently the best selling chewing gum

and sugar free gum in the world. The US

accounts for a third of its $861 million sales.

It has been growing at 15% per annum during

2000 and 2001.

• Dentyne is the leading intense-flavoured

chewing gum, growing at 18% per annum

during 2000 and 2001, mainly in North America.

• The ‘Bubbas’ range is particularly strong in Latin

America. Bubbaloo gum is the world’s top

bubblegum brand.

Value creationBy improving underlying trends in the base

business, extracting cost reduction synergies and

growing incremental sales through the cross

selling of our respective portfolios where each has

the strongest route to market, we will be earning

a positive return on the capital invested in this

acquisition by 2006. We have chosen to fund the

acquisition through debt financing. The strongly

cash generative qualities of our business and ability

to pay down this debt relatively quickly make this

the most effective method of enhancing value for

our shareowners.

Key acquisitions and disposals

Since the mid 1980s Cadbury Schweppes has expanded

throughout the world by a programme of acquisitions

and disposals to allow us to concentrate on core brands

in the confectionery and soft drinks markets.

1986 Streamlined our strategic focus on soft drinks and

confectionery with the sale of Typhoo Tea, Kenco Coffee

and Jeyes cleaning fluid. Acquired Canada Dry and the

rights to the Sunkist soft drinks brand. (Sunkist is a

registered trademark of Sunkist Growers Inc.)

1987 Coca-Cola & Schweppes Beverages joint venture

created within Great Britain. Red Tulip confectionery

brand acquired in Australia.

1988 Chocolat Poulain acquired in France. Licensed our

confectionery brands in the US.

1989 Acquisition of Crush International. Bassett's and

Trebor in the UK bought and merged together in 1990,

our first major development in sugar confectionery.

In Spain, we acquired Chocolates Hueso and

the TriNaranjus soft drinks brand.

1990 Acquired Oasis soft drinks brand in

France.

1992 In Mexico, we acquired mineral water

Aguas Minerales.

1993 A&W root beer and

soft drinks acquired in the

US and an 80% share in

confectionery firm Stani

in Argentina. Began the

construction of chocolate

factories in China and Poland.

1994 Strengthened our European

confectionery position with the acquisition of Bouquet

d'Or in France and Dulciora in Spain.

1995 Acquired Dr Pepper/Seven Up in the US for

$1.7 billion, becoming number three in the world’s

most important soft drinks market. Acquired Allan

Candy sugar confectionery in Canada and merged

it with our existing Trebor operations. Began

construction of chocolate confectionery plant in

Russia. Sold our computer services subsidiary, ITnet.

1996 Acquired chocolate firm Neilson Cadbury in

Canada and sugar confectionery company Craven Keiller

in the UK.

1997 Sold our 51% interest in Coca-Cola & Schweppes

Beverages in the UK for £622.5 million. Acquired Jaret,

a US confectionery distributor. Achieved market

leadership in Egypt, the Middle East and North Africa

with the acquisition of Bim Bim, Egypt’s largest

confectionery company. Acquired French sugar

confectionery firm La Pie Qui Chante.

1998 Formed The American Bottling Company after

acquiring two leading independent bottlers in the US

through a partnership, strengthening our route to

acquisition of adams

Corporate social responsibilityBusinesses do not operate in a vacuum; they have

wider obligations. Just as we recognise the

primacy of our shareowners, so are we conscious

of our responsibilities to our other stakeholders.

Corporate social responsibility has always been a

core part of our business philosophy. Our challenge

is to show that growth in economic value for our

shareowners is compatible with an increased

accountability for social and environmental

performance. To meet this, we are actively

implementing policies and processes that clearly

align business growth with a strong sense of our

obligations to society.

Our purpose and valuesThe Cadbury Schweppes’ Statement of Purpose

and Values provides the operating framework for

our strategic intent and the manner in which we

conduct our business in today’s world. It says who

we are and spells out our core purpose, our

governing objective, our financial targets, our

strategy, our management process, our obligations

to all our stakeholders and our values and

behaviours.

Whatever the challenge – eradicating harmful

working practices in the cocoa-growing industry

and providing agri-guidance and improving

community infrastructure in the cocoa-growing

industry; or working with governments and other

interested bodies to recognise the importance of

education and information in promoting a healthy

lifestyle and sensible diets in combating the

growing tendency to obesity – all these can be

addressed in the knowledge that they will be

applied within a clear set of operating guidelines.

market in the US.

1999 Sold our soft drinks brands in over 160 countries

for nearly $1 billion, retaining a number three presence

in the US, the world's largest soft drinks market, and

also beverage operations in Europe and Australia.

Acquired Wedel, Poland’s leading chocolate

confectionery brand, and Hawaiian Punch, the US’s

leading fruit punch brand. Acquired the Dr Pepper

Bottling Company of Texas, later forming the

Dr Pepper/Seven Up Bottling Group, in which we

have a 40% interest.

2000 In the US we acquired leading premium

beverages company Snapple Beverage Group for

$1.45 billion, and also fruit juice brand Mauna La’i.

In France we acquired the Hollywood chewing gum and

candy business. Acquired chewing gum firm Wuxi Leaf

in China and Lion Nathan bottling operations in Australia.

2001 Acquired Orangina in France and La Casera in

Spain, achieving number two position in both soft

drinks markets. In North America we acquired the

frozen, non-carbonated beverages firm, the Slush

Puppie Corporation, and Carteret, a contract packer,

mainly of Snapple. In Australia we acquired the Spring

Valley juice and Wave flavoured milk brands. Also

acquired confectionery brand Mantecol in Argentina

and Mother Earth, a New Zealand health food company.

Sold Royal Crown (RC) Cola International and its private

label concentrate supply agreement.

2002 Took our holding in Cadbury India Ltd to over

94%. Acquired 65% equity interest in Kent, Turkey’s

leading sugar confectionery firm, and purchased soft

drinks brand Squirt in Mexico, a market second only to

the US in size. In the US we acquired Nantucket

Nectars, a leading producer of premium high juice

content drinks. Built up chewing gum portfolio with

acquisition of Dandy's branded chewing gum business

in Denmark, with the Stimorol, V6 and Dirol brands,

making us number two in European chewing gum.

Acquired full ownership of Apollinaris & Schweppes

joint venture in Germany. And in December we

announced our proposed $4.2 billion acquisition of

Adams Confectionery, making us number one in global

confectionery, leader in functional confectionery and

number two in chewing gum.

2002 Turnover and Operating Profit Analysis % change

Atconstant

2002 2001 As exchange£m £m reported rates

Turnover Turnover 5,298 4,960 7% 10%

Operating Profit* 983 930 6% 9%

Turnover Operating Profit*2002 2001 2002 2001

£m £m £m £m

1 North America Beverages 1,811 1,757 548 541

Operating Profit* 2 Europe Beverages 717 515 140 91(excluding Central 3 Europe Confectionery 1,546 1,445 247 212and Other)

4 Americas Confectionery 252 312 20 44

5 Asia Pacific 642 625 99 109

6 Africa, India and Middle East 320 297 44 34

5,288 4,951 1,098 1,031

7 Central and Other 10 9 (115) (101)

5,298 4,960 983 930

This reflects our regional structure in 2002*Excluding major restructuring costs and goodwill amortisation

12

3

4 5 6

1

2

34

567

Derek C BonhamChairman (until 8th May 2003)

John M SunderlandChief Executive Officer (Chairman from 8th May 2003)

H Todd StitzerDeputy Chief Executive Officer(Chief Executive Officer from 8th May 2003)

David J KapplerChief Financial Officer

Robert J StackChief Human Resources Officer

Group Secretary and Chief Legal Officer:Michael A C Clark

Dr Wolfgang C G Berndt Non-Executive

Richard S BraddockNon-Executive

Roger M CarrSenior Independent Non-Executive(Deputy Chairman from 8th May 2003)

David A R ThompsonNon-Executive

Baroness WilcoxNon-Executive

Directors

Produced by Corporate Communications. Designed by Addison Corporate Marketing Limited.Photography: Chris Knaggs (product) and Marcus Lyon (directors). Typeset by Asset Graphics. Printed by The Westerham Press.March 2003. Cadbury Schweppes’ commitment to environmental issues has been reflected in the production of this Fact Filebrochure. The paper used has Nordic Swan environmental accreditation. The inks are all soya based (except for the gold metallicink on the front cover).

For more information please visit our website:www.cadburyschweppes.com

Derek Bonham John Sunderland Todd Stitzer

Cadbury Schweppes’ good practice in corporatesocial responsibility is recognised by our continued inclusion in both the FTSE4Good andthe Dow Jones Sustainability indices. In 2003we are launching a programme of ‘GrowingCommunity Value around the World’ and aremembers of the UK’s Business in the CommunityPerCent Club, contributing over 2% of UK pre-taxprofits to the community.

Cadbury Schweppes plc25 Berkeley SquareLondon W1J 6HB

Telephone: +44 20 7409 1313Fax: +44 20 7830 5200www.cadburyschweppes.com

Financial CalendarFinal Dividend for 2002 Interim Dividend for 2003

Ordinary sharesAnnouncement of results 12 February 2003 23 July 2003Ex-dividend date 23 April 2003 17 Sept 2003Record date 25 April 2003 19 Sept 2003Dividend payment 23 May 2003 17 October 2003

The Annual General Meeting of the Company is on 8 May 2003.