Annual Report and Accounts 2006

Income statement - 2004 to 2006 (IFRS)

	IFRS
	2006 £m	2005 £m	2004 £m
Revenue
Revenue – Continuing operations (a)
Americas Beverages	2,566	1,781	1,686
Americas Confectionery	1,330	1,228	1,093
EMEA	2,318	2,257	2,173
Asia Pacific	1,205	1,157	1,050
Central	8	9	10
	7,427	6,432	6,012
Underlying profit from operations (profit from operations excluding non-trading items, restructuring costs, amortisation and impairment of intangibles, UK product recall and IAS 39 adjustment)
Continuing operations (a)
Americas Beverages	584	524	503
Americas Confectionery	207	172	143
EMEA	276	328	316
Asia Pacific	165	157	134
Central	(159)	(156)	(149)
	1,073	1,025	947
Restructuring costs	(133)	(71)	(139)
Amortisation and impairment of intangibles	(38)	(6)	(7)
Non-trading items	40	25	18
UK product recall	(30)	–	–
IAS 39 adjustment	(3)	22	n/a
Profit from operations	909	995	819
Share of result in associates	(16)	28	22
Profit before financing and taxation	893	1,023	841
Financing	(155)	(188)	(205)
Profit before taxation	738	835	636
Taxation	(215)	(135)	(144)
Discontinued operations	642	76	55
Minorities	4	(11)	(22)
Profit for the period attributable to equity holders of the parent	1,169	765	525

(a)

In 2005, the Group's beverage business in Europe and Syria were classified as discontinued operations. In 2006, we completed the disposal of our South African beverage business. As this disposal was part of our strategic decision to exit beverages outside the Americas and Australia, it has also been classified as discontinued operations. This has required the re-presentation of the 2005 and 2004 financial statements on a comparable basis.

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Profit & loss account - 2002 to 2003 (UK GAAP)

	UK GAAP
	2003 £m	2002 £m
Turnover
Turnover – Continuing operations (a)
Americas Beverages	1,814	1,982
Americas Confectionery	871	233
EMEA	2,033	1,734
Asia Pacific	937	738
Central	10	10
	5,665	4,697
Underlying operating profit (operating profit excluding operating exceptional items, goodwill/intangibles amortisation and operating profit in associates)
Continuing operations
Americas Beverages	532	585
Americas Confectionery	95	15
EMEA	296	273
Asia Pacific	128	114
Central	(131)	(115)
	920	872
Discontinued operations	132	111
Exceptional restructuring costs	(184)	(53)
Other exceptional items	(40)	–
Goodwill/intangibles amortisation	(129)	(64)
Group operating profit	699	866
Share of operating profit in associates	51	58
Total profit from operations including associates	750	924
(Loss)/profit on sale of subsidiaries, investments and fixed assets	(5)	12
Net interest	(181)	(106)
Profit on ordinary activities before taxation	564	830
Taxation	(173)	(255)
Minority interests	(25)	(27)
Profit for the financial year	366	548

In 2005, the Group adopted International Financial Reporting Standards ("IFRS"). The Group has prepared one year of comparative financial information in accordance with IFRS 1. The financial statements for earlier periods have not been restated and the information above represents the previously presented UK GAAP information.

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Cash flows & balance sheet - 2004 to 2006 (IFRS)

	IFRS
	2006 £m	2005 £m	2004 £m
Cash flows
Net cash from operating activities	620	891	745
Additional funding of past service pensions deficit	67	31	–
Income taxes paid on disposals	83	–	–
Net capital expenditure	(300)	(261)	(259)
Net dividends paid	(270)	(257)	(257)
Free Cash Flow	200	404	229
Balance sheets
Assets employed
Intangible assets and goodwill	5,903	5,648	5,757
Property, plant and equipment	1,664	1,446	1,464
Assets held for sale	22	945	5
Other non-current assets	248	567	419
Inventory and trade and other receivables	1,914	1,893	1,859
Other current assets	87	114	30
Cash and short-term investments	395	379	346
Total assets	10,233	10,992	9,880
Total current liabilities, excluding borrowings and provisions	(1,862)	(1,841)	(1,696)
Liabilities directly associated with assets classified as held for sale	(9)	(291)	–
Total non-current liabilities, excluding borrowings, provisions and retirement
benefit obligations	(1,085)	(1,124)	(1,106)
Provisions	(73)	(53)	(77)
Retirement benefit obligations	(204)	(369)	(485)
	7,000	7,314	6,516
Financed by
Gross borrowings	3,304	4,279	4,216
Minority interests	8	27	229
Called-up share capital	262	260	259
Share premium account	1,171	1,135	1,098
Retained earnings and other reserves	2,255	1,613	714
	7,000	7,314	6,516
Net debt
Gross borrowings	3,304	4,279	4,216
Less: Cash and short-term investments	(395)	(379)	(346)
	2,909	3,900	3,870

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Cash flows & balance sheet - 2002 to 2003 (UK GAAP)

	UK GAAP
	2003 £m	2002 £m
Cash flows
Cash flow from operating activities and associates	1,063	1,109
Capital expenditure, net	(285)	(251)
Taxation, returns on investment and servicing of finance	(372)	(320)
Ordinary dividends	(234)	(223)
Free Cash Flow	172	315
Balance sheets
Assets employed
Intangible assets and goodwill	5,827	3,919
Tangible fixed assets	1,633	1,351
Fixed asset investments	328	319
Stock and debtors	1,974	1,580
Cash and short-term investments	433	472
Total assets	10,195	7,641
Total creditors, excluding borrowings	(2,100)	(1,793)
Provisions	(428)	(419)
	7,667	5,429
Financed by
Gross borrowings	4,644	2,318
Minority interests	243	266
Called-up share capital	258	257
Share premium account	1,071	1,050
Ordinary shareholders' funds	1,451	1,538
	7,667	5,429
Net debt
Gross borrowings	4,644	2,318
Less: Cash and short-term investments	(433)	(472)
	4,211	1,846

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