2008 Highlights
Base business1 revenue up 7%; strong growth across emerging markets and focus brands
Good growth across all categories; chocolate up 6%, gum up 10%, candy up 6% Emerging markets up 12%; five year compound average growth of 12% Focus brands up 8%; Cadbury Dairy Milk up 11%, Trident up 11%, and Halls up 9%Underlying margins up 150 bps driven by Vision into Action cost reduction initiatives
Reported margins up 180 bps to 11.9% Price realisation offset input cost increasesStrong financial performance
Proforma EPS up 16%; up 30% at reported currency Recommended final dividend of 11.1p (2007: 10.5p); full year dividend 16.4p, up 6% Improved Return on Invested Capital, up 110 bps Secure financing – average maturity of long-term debt 6 yearsTransformation of the business into a category-led pure-play confectionery company
Demerger of Dr Pepper Snapple Group completed in May Announced a conditional agreement to sell Australia Beverages for £550m(Except where stated all movements use constant currency – see Basis of Preparation on page 3 for impact of exchange)

Todd Stitzer, Cadbury’s CEO said: “In 2008, Cadbury completed its transformation into a pure-play confectionery company. Our strong revenue growth and significant improvement in operating margin demonstrate the relative resilience of our focused business model. Whilst we will not be immune from the continued weak economic environment, at this early stage in 2009, we expect to deliver revenue growth around the lower end of our 4-6% goal range and to make good progress toward our goal of mid-teens margins by 2011.”

£m 2008 Re- presented 2007 Reported
Currency Growth % Constant Currency 3 Growth %
Revenue 5,384 4,699 +15 +6
Underlying Profit from Operations2 638 473 +35 +22
Restructuring & other non-underlying items (250) (195)
Profit from Operations 388 278
Underlying Profit before Tax2 559 430 +30 +17
Profit before Tax 400 254
Discontinued Operations (4) 258
Underlying EPS Continuing Ops2 24.9p 14.7p
Reported EPS Continuing Ops 22.8p 7.0p
Reported EPS Continuing & Discontinued Ops 22.6p 19.4p
Proforma EPS – Continuing Ops4 29.8p 23.0p +30 +16
Dividend per share 16.4p 15.5p +6

Notes

1 Base business revenue is stated at constant currency and before acquisitions and disposals.
2 Cadbury plc believes that underlying profit from operations, underlying profit before tax and underlying earnings per share provide additional information on underlying trends to shareholders. The term underlying is not a defined term under IFRS, and may not be comparable with similarly titled profit measures reported by other companies. It is not intended to be a substitute for, or superior to, IFRS measures of profit. A full reconciliation between underlying and reported measures is included in the segmental reporting and reconciliation of underlying measures note.
3 Constant currency growth excludes the impact of exchange rate movements during the period.
4 As a result of the Scheme of Arrangement to replace Cadbury Schweppes plc with Cadbury plc as the new holding company of the Group and the subsequent demerger of Americas Beverages, the shares of the Group were restructured with 100 Cadbury Schweppes shares exchanged for 64 Cadbury shares and 12 shares in DPSG. Proforma EPS calculates underlying earnings per share of the continuing Group with reference to the underlying net profit from continuing operations of £403m (2007 - £309m) and assumes that the share consolidation was in place for the entire period in both 2007 and 2008 resulting in the proforma weighted average number of shares used to calculate proforma EPS of 1,347m (2007 – 1,336m).