Interim Results - Part 2

Tate & Lyle PLC 8 November 2001 PART 2 TATE & LYLE NOTES TO INTERIM STATEMENT For the 6 months to 30 September 2001 1. Segmental analysis of sales ------------------------------------------------------------------------ Total Ongo- West- contin- Discont- Total 6 months to 30 ing ern uing nued sales September 2001 activ- Sugar* activ- activ- ities ities ites (unaudited) £million £million £million £million £million ------------------------------------------------------------------------ Sweeteners and starches - Americas 652 75 727 246 973 - Europe 688 - 688 - 688 - Rest of the 246 - 246 - 246 world ----- ----- ----- ----- ----- 1,586 75 1,661 246 1,907 Animal feed and bulk 180 - 180 - 180 storage Other businesses and 46 - 46 - 46 activities ----- ----- ----- ----- ----- 1,812 75 1,887 246 2,133 ===== ===== ===== ===== ===== 27 weeks to 30 September 2000 (unaudited) ------------------------------------------------------------------------ Sweeteners and starches - Americas 621 117 738 252 990 - Europe 609 - 609 - 609 - Rest of the 211 - 211 46 257 world ----- ----- ----- ----- ----- 1,441 117 1,558 298 1,856 Animal feed and bulk 138 - 138 77 215 storage Other businesses and 46 - 46 5 51 activities ----- ----- ----- ----- ----- 1,625 117 1,742 380 2,122 ===== ===== ===== ===== ===== 53 weeks to 31 March 2001 (audited) Sweeteners and starches - Americas 1,201 167 1,368 517 1,885 - Europe 1,186 - 1,186 - 1,186 - Rest of the 507 - 507 73 580 world ----- ----- ----- ----- ----- 2,894 167 3,061 590 3,651 Animal feed and bulk 320 - 320 86 406 storage Other businesses and 84 - 84 5 89 activities ----- ----- ----- ----- ----- 3,298 167 3,465 681 4,146 ===== ===== ===== ===== ===== * It is planned to dispose of this business, which is therefore shown separately. Included in the analysis of total sales are the following amounts relating to associates and joint ventures: 6 months 27 weeks to 53 weeks to 30 Sept to 30 Sept 2000 31 March 2001 2001 £ million £ million £ million Sweeteners and starches - Americas 89 88 158 - Europe 72 64 119 - Rest of the world 13 19 33 ---- ---- ---- 174 171 310 Animal feed and bulk 2 3 4 storage Other businesses and - 1 5 activities ---- ---- ---- 176 175 319 ==== ==== ==== PAGE NINE OF THIRTEEN TATE & LYLE PLC NOTES TO INTERIM STATEMENT (continued) For the 6 months to 30 September 2001 2. Segmental analysis of profit before interest ------------------------------------------------------------------------- Before After Ongo- West- Conti- Discon- excep- Excep- except- 6 months to 30 ing ern nuing tinued tional tional tional September 2001 activ- Sugar(v)activ- activ- items items(vi) items (unaudited) ities ities ities £m £m £m £m £m £m £m ------------------------------------------------------------------------- Sweeteners and starches - Americas 64* (1) 63* (18) 45* - 45* - Europe 53* - 53* - 53* 4 57* - Rest of the 4 - 4 - 4 - 4 world ---- ---- ---- ---- ---- ---- ---- 121 (1) 120 (18) 102 4 106 Animal feed and 1 - 1 - 1 - 1 bulk storage Other businesses (10) - (10) - (10) - (10) and activities ---- ---- ---- ---- ---- ---- ---- 112 (1) 111 (18) 93 4 97 ---- ---- ---- ---- ---- ---- ---- * These profit figures include £2 million of goodwill amortisation. 27 weeks to 30 September 2000 (unaudited restated) ------------------------------------------------------------------------- Sweeteners and starches - Americas 66 - 66 (9) 57 (70) (13) - Europe 48** - 48** - 48** - 48** - Rest of the 5 - 5 1 6 5 11 world ---- ---- ---- ---- ---- ---- ---- 119 - 119 (8) 111 (65) 46 Animal feed and 6 - 6 (4) 2 (3) (1) bulk storage Other businesses (9) - (9) 2 (7) 3 (4) and activities ---- ---- ---- ---- ---- ---- ---- 116 - 116 (10) 106 (65) 41 ** These profit figures include £1 million of goodwill amortisation. 53 weeks to 31 March 2001 (audited restated) Sweeteners and starches - Americas 116*** (3) 113*** (17) 96*** (302) (206)*** - Europe 75**** - 75**** - 75**** (2) 73**** - Rest of the 9 - 9 5 14 5 19 world ---- ---- ---- ---- ---- ---- ---- 200 (3) 197 (12) 185 (299) (114) Animal feed and 14 - 14 (5) 9 (5) 4 bulk storage Other businesses (15) - (15) 1 (14) 6 (8) and activities ---- ---- ---- ---- ----- ---- ----- 199 (3) 196 (16) 180 (298) (118) *** These profit figures include £2 million of goodwill amortisation. **** These profit figures include £3 million of goodwill amortisation. (v) It is planned to dispose of this business, which is therefore shown separately. (vi) Comparative figures have been restated following the adoption of a new accounting standard FRS 19 on deferred taxation, as described in note 9. PAGE TEN OF THIRTEEN TATE & LYLE NOTES TO INTERIM STATEMENT (continued) For the 6 months to 30 September 2001 3. Earnings/(losses) per share ---------------------------------------------------------------------- The basic earnings per share of 9.4p (27 weeks to 30 September 2000 losses of 5.8p, 53 weeks to 31 March 2001 losses of 50.0p) are calculated by dividing profits after taxation and minority interests and preference dividend of £45 million (September 2000 - loss of £27 million, March 2001 - loss of £236 million), by the weighted average number of ordinary shares in issue during the period 478,797,825 (September 2000 - 463,404,780; March 2001 - 472,105,697). The diluted earnings per share are calculated on the assumptions that the outstanding options over 2,414,708 shares had been exercised and that the funds so generated would be used to purchase 1,821,358 ordinary shares at the average price during the period of 260p, thereby increasing the average number of shares to 479,391,175. Earnings / (losses) Diluted earnings / (losses) per share 6 27 53 6 27 53 months weeks weeks months weeks weeks to to to to to 30 to 30 Sept 30 31 30 Sept 31 2001 Sept March Sept 2000 March 2000 2001 2001 2001 ---------------------------------------------------------------------- Diluted earnings 45 (27) (236) 9.4 (5.8) (50.0) of the period Goodwill 4 1 5 0.8 0.2 1.1 amortisation Exceptional items (4) 69 301 (0.8) 14.9 63.7 ------------------------------------------------- Diluted earnings before goodwill 45 43 70 9.4 9.3 14.8 amortisation and exceptional items ================================================= Audited Unaudited Unaudited 53 6 27 weeks months weeks to 4. Analysis of net cash inflow from to to 31 operating activities 30 Sept 30 Sept March 2001 2000 2001 £million £million £million ---------------------------------------------------------------------- Operating profit 77 90 151 Depreciation of tangible 58 66 132 fixed assets Amortisation of goodwill 4 1 5 Change in working capital 76 38 (69) Net cash inflow from 215 195 219 operating activities 5. Cash flow/net debt reconciliation ---------------------------------------------------------------------- Net cash inflow/(outflow) before financing and management of 92 (25) (104) liquid resources Changes in debt not involving cash flow: - Assumed on acquisition of - - (1) subsidiaries - Reduction on disposal of 12 10 8 subsidiaries - Exchange movements 12 (18) (59) - Amortisation of bond discount (1) - (2) ------- ------- ------- Reduction/(increase) in net 115 (33) (158) borrowings Net borrowings at start of (963) (805) (805) period ------- ------- ------- Net borrowings at end of period (848) (838) (963) ======= ======= ======= PAGE ELEVEN OF THIRTEEN TATE & LYLE NOTES TO INTERIM STATEMENT (continued) For the 6 months to 30 September 2001 Unaudited Unaudited Audited 6. Analysis of net debt 30 September 30 September 31 March 2001 2000 2001 £million £million £million --------------------------------------------------------------------- Investments and cash at bank 166 176 117 and in hand Borrowings due within one year (443) (158) (426) Borrowings due after more than (571) (856) (654) one year ------ ------ ------ (848) (838) (963) ====== ====== ====== 7. Average exchange rates --------------------------------------------------------------------- US Dollar £1 = $ 1.43 1.50 1.48 Euro £1 = Euro 1.62 1.64 1.63 8. Period end exchange rates --------------------------------------------------------------------- US Dollar £1 = $ 1.47 1.48 1.42 Euro £1 = Euro 1.61 1.68 1.61 9. Basis of Preparation --------------------------------------------------------------------- The foregoing accounts are prepared on the basis of the accounting policies set out in the 2001 Annual Report for the 53 weeks to 31 March 2001 except that the accounting standard FRS 19 'Deferred Tax' has been adopted in the interim report for the first time. Deferred tax at 25 March 2000 and at 31 March 2001 has been increased by £136 million and £145 million respectively. Following adjustments to purchased goodwill and exceptional write downs on planned sales of businesses, retained profits at 25 March 2000 and 31 March 2001 are reduced by £119 million and £92 million respectively. In addition the tax charge for the 27 weeks to 30 September 2000 has been restated, increasing by £2 million to £24 million, and for the 53 weeks to 31 March 2001 increasing by £5 million to £40 million. The balance sheet as at 31 March 2001 has been abridged from the full Group accounts, which received an auditors' report which was unqualified and did not contain any statement concerning accounting records or failure to obtain necessary information and explanations. The full Group accounts have been delivered to the Registrar of Companies. The results for the 6 months to 30 September 2001 and the 27 weeks to 30 September 2000 and the balance sheets at 30 September 2001 and at 30 September 2000 are neither audited nor reviewed. TATE & LYLE NOTES TO INTERIM STATEMENT (continued) For the 6 months to 30 September 2001 10. Net margin analysis --------------------------------------------------------------------- -- 2001 2000 2001 6 months to 27 weeks to 53 weeks to 30 September 30 September 31 March ----------------------------------------------------------------------- Ongoi- All Ongoi- All Ongoi- All Before goodwill ng Activ- ng activ- ng activ- amortisation and activ- ities activ- ities activ- ities exceptional items ities ities ities % % % % % % ----------------------------------------------------------------------- Sweeteners and starches - Americas 10.1 4.8 10.6 5.8 9.8 5.2 - Europe 8.0 8.0 8.0 8.0 6.6 6.6 - Rest of the world 1.6 1.6 2.4 2.3 1.8 2.4 Sweeteners and 7.9 5.6 8.3 6.0 7.1 5.2 starches average Animal feed and bulk 0.6 0.6 4.3 0.9 4.4 2.2 storage Group 6.4 4.5 7.2 5.0 6.2 4.5 After goodwill amortisation and exceptional items Sweeteners and starches - Americas 4.6 (1.3) (10.9) - Europe 8.3 7.9 6.2 - Rest of the world 1.6 4.3 3.3 Sweeteners and 5.6 2.5 (3.1) starches average Animal feed and bulk 0.6 (0.5) 1.0 storage Group 4.5 1.9 (2.8) PAGE TWELVE OF THIRTEEN TATE & LYLE NOTES TO INTERIM STATEMENT (continued) For the 6 months to September 2001 11. Ratio analysis ---------------------------------------------------------------------- Unaudited Restated* Unaudited restated* 53 weeks 6 months 27 weeks to to to 31 March 30 September 30 September 2001 2001 2000 Gearing Gearing = Net borrowings 848 838 963 -------------- ----- ----- ----- Total net assets 1,036 1,125 1,062 = 82% = 74% = 91% Interest Cover - Tate & Lyle PLC and its subsidiaries =Operating profit before goodwill amortisation and exceptional items ------------------------------------------------------------------- Net interest payable 81 91 156 -- -- -- 27 35 67 = 3.0 = 2.6 = 2.3 times times times Dividend Cover before goodwill amortisation and exceptional items = EPS (basic) -------------- Total ordinary dividend/share 9.4 9.3 14.8 5.5 5.5 17.8 = 1.7 = 1.7 = 0.8 times times times Return on Net Operating Assets = Profit before interest, tax and exceptional items ------------------------------------------------- Average net operating assets 93 106 180 2,084 2,061 2,116 = 8.9% = 10.3% = 8.5% Net operating assets are calculated as: Total net assets 1,036 1,125 1,062 Add back: Net borrowings 848 838 963 Deduct unallocated assets - 116 94 142 dividends & tax ----- ----- ----- Net operating assets 2,000 2,057 2,167 ----- ----- ----- Average net operating assets 2,084 2,061 2,116 * Comparative figures have been restated following the adoption of a new accounting standard FRS 19 on deferred taxation, as described in note 9. 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