Annual Report and Accounts 2006

Employees

Average employee headcount	2006	2005	2004
Americas Beverages	14,562	6,605	6,774
Americas Confectionery	14,568	14,175	14,002
EMEA	23,457	20,705	20,450
Asia Pacific	13,354	12,624	12,436
Central	761	769	662
Continuing operations	66,702	54,878	54,324
Europe Beverages	309	3,703	4,118
Total	67,011	58,581	58,442

The average employee headcount in the UK in 2006 was 7,847 (2005: 7,460; 2004: 7,468). The average employee headcount disclosed above reflects the incremental heads for CSBG only for the period since acquisition. On a pro forma basis assuming that CSBG had been acquired at the start of the year the average headcount for Americas Beverages and Continuing Operations would have been 18,372 and 70,512 respectively.

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People Strategy

We publish a People Strategy in support of our business strategy and our annual five goals and ten priorities. Our People Strategy links our organisational capabilities with the value we seek to create for our shareowners. It embraces four areas:

• getting the right people and putting in place the right organisation designs
• attracting, retaining and developing the right range of talent
• building stimulating and attractive workplaces and atmospheres
• rewarding the right performance outcomes and behaviours

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Performance measurement and management

We measure the impact of our People Strategy and the contribution employees make to our business through a two-part performance measurement system.

Individual performance is reviewed by an employee's line manager at the half year and year end and measured against clearly specified objectives. These objectives are set at the start of the year through a formal meeting with the line manager and are documented and signed. Managers are also reviewed against the behaviours we describe in our global leadership imperatives: Accountable, Adaptable, Aggressive, Forward Thinking, Motivating, Collaborative, Growing People and Living our Values. The individual is rated on performance and rewarded accordingly. We operate this performance management process globally. We also have a separate process to identify the potential of our managers to grow into new roles and this is conducted on an annual basis.

Our ability to gain the engagement and earn the commitment of our people is also measured. We use a climate survey tool, which has proved a direct correlation between the performance of a business and the level of engagement of its employees (the discretionary effort an employee will give). This is the second year we have run the survey for all employees.

In 2006, we had an excellent 76% response rate to the climate survey and strong results. Nearly 96% of respondents around the world are proud to work for Cadbury Schweppes, know what is expected of them and constantly try to find ways of working better. The areas where we can improve are particularly related to enabling people to achieve more - for the business, themselves and for their communities.

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