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Cadbury Annual Report & Accounts 2008

Glossary

A

ADR

American Depositary Shares, each of which is represented by one ADR, are quoted on the New York Stock Exchange in the form of American Depositary Receipts, each of which represent 4 ordinary shares in the Cadbury plc. JP Morgan Chase Bank N.A., our ADR depositary bank, hold ADRs on behalf of the beneficial holders

AIP

Annual Incentive Plan – annual plan to incentivise delivery of performance goals for the year

Asia Pacific

Business Unit comprising China, India, Pakistan and South East Asia

B

Base Business

Business Operations before impact attributable to exchange rate movements, acquisitions and disposals and business improvement costs

B&I

Britain and Ireland Business Unit

BIMA

Britain, Ireland, Middle-East and Africa

Bn or bn

Billion

bps

Basis Points, each point representing 0.01% – typically used to measure change in margins or market share

BSRP

Bonus Share Retention Plan – long term incentive plan requiring voluntary deferral of AIP with an opportunity to earn additional awards based on service and performance

BU

Business Units, which comprise a number of Country Units. These are the seven commercial units reporting directly to the CEO

Business Segments/Regions

In 2008, our Business segments comprised BIMA, Europe, the Americas and Asia Pacific, Britain and Ireland

C

CDM

Cadbury Dairy Milk

Company

For periods prior to 2 May 2008 this term refers to Cadbury Schweppes plc. For periods after 2 May 2008 the term refers to Cadbury plc, the Group’s ultimate parent company and listed entity. Cadbury Holdings Limited is the new name for Cadbury Schweppes plc since 2 May 2008

CSR

Corporate and Social Responsibility

CU

Country Unit e.g. France

Cadbury

The Cadbury Group or Cadbury plc depending on its context

CAGR

Compound Annual Growth Rate

D

DPSG

Dr Pepper Snapple Group, Inc., the parent company of the Americas Beverages business, comprising operations in the United States, Canada, Mexico and the Caribbean together with its manufacturing facilities and marketing and distribution networks; which was demerged in May 2008

E

EBITDA

Earnings before Interest, Tax, Depreciation and Amortisation

EPS

Earnings per Share – the net profit of the Group attributed to equity shareholders divided by the weighted average number of shares outstanding in the period

Exceptional and non-underlying items

Certain items which do not reflect the Group’s underlying trading performance and due to their significance and one-off nature have been reported outside underlying so as not to distort the performance of the business

Exchange Ratio

Relates to the Scheme of Arrangement and demerger of DPSG, by which 100 shares in Cadbury Schweppes plc were exchanged for 64 shares in Cadbury plc and 12 shares in DPSG

F

FMCG

Fast Moving Consumer Goods

Free Cash Flow

Free Cash Flow is defined as the amount of cash generated by the business after meeting all its obligations for interest, tax and capital investment

G

GAAP

Generally Accepted Accounting Principles

Global Functions

Category aligned functions (Commercial, Science & Technology and Supply Chain) and Corporate functions (Finance & IT, HR & Corporate Affairs, Legal and Secretariat and Strategy)

Group

For periods prior to 2 May 2008 this terms refers to the group of subsidiary and associated companies headed by Cadbury Schweppes plc. After this date it refers to the group of subsidiary and associated companies headed by Cadbury plc

I

IASB

International Accounting Standards Board

IFRS

International Financial Reporting Standards as endorsed and adopted for use in the European Union and International Financial Reporting Standards as issued by the International Accounting Standards Board namely the accounting standards we follow when preparing our Financial Statements

L

LTIP

Long Term Incentive Plan – long term incentive plan focused on long term valuation creation by measuring improvements in Underlying Earmings Per Share and Return on Invested Capital

M

M/m

Million

MEA

Business Unit comprising the Middle East and Africa

N

Net Debt

Net debt is defined as total borrowings after offsetting cash and cash equivalents and short term investments

O

Operating Margin or Trading Margin

The ratio of profit from operations to revenue

P

Pacific

Business Unit comprising Australia, New Zealand and North East Asia

R

ROIC

Return on Invested Capital, a key performance indicator and part of our performance scorecard

S

Scheme of Arrangement?

Means the Scheme of Arrangement under section 425 of the Companies Act 1985 between the Company and the shareholders by which Cadbury plc was inserted into the Group as the new ultimate parent company and DPSG was demerged

SG&A

Sales, General and Administration, typically used to describe part of our cost base

SKU

Stock keeping unit – term used in packaged goods to refer to each individual product variant

U

Underlying

That part of the Group’s performance which reflects the ongoing trends of the business and excludes the impact of any distortive one-off items

V

VIA

Vision into Action – strategic plan to achieve mid-teens margins by 2011

W

WACC

Weighted Average Cost of Capital

Todd Stitzer,
Chief Executive Officer, talks about our 2008 full year results

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