annual report 2006 
tate  lyle annual report 2006 02 financial highlights
04 tate  lyle at a glance
06 chairman’s statement
08 chief executive’s review
12 our strategy in action
20 operating and financial review
20 business description
20 strategy and objectives
21 operating environment
22 products and their uses
23 key performance indicators
23 resources
24 risk factors
26 financial review
35 corporate social responsibility
42 board of directors
44 senior management
46 directors’ report
48 corporate governance
54 directors’ remuneration report
65 financial statements
group financial statements
66 independent auditors’ report
67 consolidated income statement 
68 consolidated statement 
of recognised income 
and expense
69 consolidated balance sheet
70 consolidated cash flow
statement
71 notes to the consolidated
financial statements
parent company financial 
statements
124 independent auditors’ report
125 parent company balance sheet 
126 notes to the parent company
financial statements
133 information for investors
134 ten year review
136 index
137 useful addresses and 
telephone numbers
trademarks
splenda
®
and the splenda
®
logo are
trademarks of mcneil nutritionals llc
the dupont oval logo dupont
tm
and sorona
®
are trademarks or registered trademarks of 
ei du pont de nemours and company
cautionary statement
this annual report and accounts contains 
certain forwardlooking statements with respect 
to the financial condition results operations 
and businesses of tate  lyle plc these
statements and forecasts involve risk and
uncertainty because they relate to events and
depend upon circumstances that will occur in the
future there are a number of factors that could
cause actual results or developments to differ
materially from those expressed or implied by
these forwardlooking statements and forecasts
nothing in this annual report and accounts
should be construed as a profit forecast 
tate  lyle plc
tate  lyle plc is a public limited company listed
on the london stock exchange and registered in
england this is the report and accounts for the
year ended 31 march 2006 
more information about tate  lyle can be found
on our website at wwwtateandlylecom
tate  lyle annual report 2006   137
registered office
sugar quay 
lower thames street
london 
ec3r 6dq
tel 020 7626 6525
fax 020 7623 5213
website
httpwwwtateandlylecom
share registrar
lloyds tsb registrars
the causeway 
worthing west sussex 
bn99 6da
for telephone enquiries please
phone 0870 600 3970
this is a lloyds tsb registrars helpline
service which will recognise the
company’s name
adr depositary
the bank of new york
investor relations department
101 barclay street – 11th floor
new york ny 10286
tel 1 888 269 2377
corporate brokers
citigroup 
33 canada square
canary wharf
london e14 5lb
useful addresses and telephone numbers
printed by royle corporate print on revive matt which contains a minimum of 75 deinked
postconsumer waste
both printer and manufacturing paper mill are environmentally accredited iso14001
designed and produced by
pauffley wwwpauffleycom
photography by 
bill robinson 
nick david and
michael harvey our purpose
to create the world’s leading renewable
ingredients business
our vision 
we will grow by uniting our businesses 
and developing partnerships to create 
the world’s leading renewable ingredients
business we will build a consistent global
portfolio of distinctive profitable 
highvalue solutions in products and
services for our customers
tate  lyle is a world leading
manufacturer of renewable food and
industrial ingredients founded in the 
uk in 1921 tate  lyle is now a global
company operating more than 65
production facilities in 29 countries 
mainly throughout europe the americas
and south east asia
all of our ingredients are produced from
renewable crops predominantly corn
maize wheat and sugar through the
use of innovative technology we
transform these crops into value added
ingredients for our customers in the food
beverage pharmaceutical cosmetic
paper packaging and building industries 
our ingredient portfolio includes
sweeteners high performance and basic
starches polyols acidulants gums
sugars and splenda
®
sucralose 
backed by a strong and growing research
organisation our ingredients help add
taste texture nutrition and increased
functionality to everyday products used
by millions of people around the world 
tate  lyle annual report 2006   01 02 tate  lyle annual report 2006
tate  lyle performed well during
the 2006 financial year and achieved
good profit growth 
financial highlights
amortisation
unless stated otherwise the use of the word
‘amortisation’ on pages 2 to 64 in this annual
report and accounts relates to the amortisation 
of intangible assets arising on acquisition 
of businesses
basis of preparation
these financial statements are presented for the
first time on the basis of international financial
reporting standards ifrs having previously
been reported under uk gaap  the comparative
information in respect of the year to 31 march
2005 has been restated other than accounting for
financial instruments for which ias32 and ias39
were adopted from 1 april 2005
159
2002
228
2003
227
2004
255
2005
254
2005
295
2006
profit before tax exceptional items
and amortisation £m
uk gaapifrs
178
2002
183
2003
188
2004
194
2005
200
2006
dividends per share pence
221
2002
330
2003
339
2004
380
2005
374
2005
417
2006
diluted earnings per share before exceptional
items and amortisation pence
uk gaapifrs uk gaapifrs
639
2002
471
2003
388
2004
451
2005
471
2005
858
2006
net debt £m tate  lyle annual report 2006   03
year to year to
31 march 2006 31 march 2005
sales £3 720m £3 339m 11
profit before tax exceptional items
and amortisation
1
£295m £254m 16
profit before taxation £42m £205m –80
diluted earnings per share before 
exceptional items and amortisation 417p 374p 11
diluted lossearnings per share 63p 306p na
dividend per share 200p 194p 31
1
before net charge for exceptional items of £248 million 2005 – £45 million 
and amortisation of £5 million 2005 – £4 million
■
profit before tax exceptional items and
amortisation up 16
■
strong full year contribution from total value added
products with profit before interest exceptional
items and amortisation increased by 22 from
£132 million to £161 million 
■
diluted earnings per share before exceptional
items and amortisation up 11
■
exceptional impairment charge of £272 million
principally relating to eu sugar regime reform
■
net debt increased by £387 million to £858 million
interest cover remains strong at 99 times
■
proposed total dividend per share increased by
31 to 200p 04 tate  lyle annual report 2006
tate  lyle at a glance
04   tate  lyle annual report 2006
how our business is organised 
our operations and joint ventures
products services and plants
food  industrial
ingredients europe
contribution to profit before interest
1
products and services
cereal starches and sweeteners
proteins
potable alcohol
polyols
biogums
ethanol
blending
plants excluding joint ventures
9 eu
1 morocco
processes and raw materials
wheat and corn maize milling
cereal sweetener fermentation
hydrogenation
main joint ventures
eaststarch
cereal starches and sweeteners
hungrana part of eaststarch
cereal starches and sweeteners and
potable alcohol
sedamyl
cereal starches and sweeteners and
potable alcohol
sedalcol
potable alcohol and ethanol
orsan guangzhou gourmet powder co
glutamate flavour enhancer producer 
sucralose
contribution to profit before interest
1
products and services
splenda
®
sucralose
plants 
1 us
1 singapore under construction
processes and raw materials
patented sucralose manufacturing
process
food  industrial 
ingredients americas
contribution to profit before interest
1
products and services
cereal starches and sweeteners
proteins
acidulants
biogums
ethanol
aquasta
tm
biopdo
tm
alleggra
tm
blending
plants excluding joint ventures
11 us
1 eu
1 south america
processes and raw materials
corn maize milling
cereal sweetener sugar 
or molasses fermentation
main joint ventures
almex
cereal starches and sweeteners
astaxanthin partners
aquasta
tm
astaxanthin an essential
nutrient for farmraised fish
dupont tate  lyle bioproducts
biopdo
tm
a monomer made from corn
used to produce dupont
tm
sorona
®
polymer
sucromiles
citric acid and alcochemicals
1
for the year ended 31 march 2006 and before exceptional items and amortisation
38 14 21 tate  lyle annual report 2006   05
global
global food ingredients group
global marketing
global research  development
global information systems 
information technology
corporate centre
sugars americas  asia
contribution to profit before interest
1
products and services
sugars
main consumer brands
redpath
melli
plants excluding joint ventures
1 canada
1 packing and blending operation
canada
processes and raw materials
cane sugar refining
blending
main joint ventures
occidente
sugar molasses and potable alcohol
nghe an tate  lyle
sugar
sugars europe
contribution to profit before interest
1
products and services
sugars syrups and molasses
sugar and ethanol trading molasses
trading and blending and liquid storage
process technology and engineering
main consumer brands
tate  lyle
lyle’s golden syrup
sidul
sores
plants excluding joint ventures
2 eu
18 global molasses blending facilities
processes and raw materials
cane sugar refining
blending
main joint ventures
eastern sugar
sugar
compania de melazas
molasses
premier molasses company
molasses
all our ingredients are made from
renewable crops corn sugar and 
wheat and our industrial ingredients
often replace synthetic or 
petrochemical alternatives
more details on our subsidiaries 
joint ventures and investments can 
be found on pages 113 to 115
19 8 06 tate  lyle annual report 2006
chairman’s statement
“tate  lyle has had another year
of strong performance driven
substantially by our value
added businesses”
results
tate  lyle has had another good year 
with profit before tax exceptional items 
and amortisation of £295 million 2005 – 
£254 million representing a 16
improvement over the prior year there 
was a positive exchange translation effect 
of £8 million the improvement was driven
mainly by growth in splenda
®
sucralose
and strong performances from food 
industrial ingredients americas and sugar
trading the operating performance at the
end of the year was particularly good
notably from food  industrial ingredients
americas and sugar trading with additional
benefit from marktomarket adjustments
and certain oneoff items
growth was delivered despite increased
energy costs across the business the
adverse effect of the oversupply of sugar 
in the eu and consequences arising 
from reform of the eu sugar regime 
sales increased to £3720 million 
2005 – £3339 million 
diluted earnings per share before 
exceptional items and amortisation for 
the year to 31 march 2006 were up 11 
at 417p 2005 – 374p after exceptional
items and amortisation the diluted loss per
share was 63p 2005 – earnings of 306p
the net charge for exceptional items before
tax totalled £248 million 2005 – £45 million
in our announcement of 29 march 2006 
we stated that we would be reviewing the 
carrying value of our european assets 
affected by changes to the eu sugar regime
the outcome of this review is the principal
element of the total impairment charge of
£272 million the details of which including
the effect on the future depreciation charge
are set out in the operating and financial
review this has been partially offset by a
£24 million release of provisions relating to
us healthcare liabilities following changes 
to the funding of these costs announced 
by the us government
profit before tax after exceptional items 
and amortisation was £42 million 2005 –
£205 million 
after an increase in investment and capital
expenditure to £344 million including
significant expenditure on splenda
®
sucralose and an increase of £58 million
06 tate  lyle annual report 2006 outlook
this has been another strong financial
performance from tate  lyle driven
substantially by our value added businesses
and benefiting from a good operating
performance and certain oneoff items 
at the end of the year these results have
been achieved despite absorbing significantly
increased energy costs across the business
in addition our european operations were
adversely affected by an oversupply of sugar
in the eu market and other factors arising
from the reform of the eu sugar regime 
in our announcement of 29 march 2006 
we stated that we would be reviewing the
carrying value of those of our european
assets affected by changes to the eu sugar
regime the outcome of this review is the
principal element of the total impairment
charge of £272 million the details of which
are set out in the operating and financial
review fundamental options to mitigate 
the impact of the sugar regime are 
being examined
our strategy to grow the profit contribution
from value added products continues to 
be successful and we have set as our target 
for the current year an increase in profit
contribution of 30 from this activity in part
our target derives from the exciting prospect
of new value added product facilities
including capacity for splenda
®
sucralose
being completed and commissioned during
the year to 31 march 2007 this time last
year we said that we viewed the future with
confidence the success of our value added
strategy makes it entirely appropriate to
repeat that message
sir david lees
chairman
24 may 2006
tate  lyle annual report 2006   07
reflecting the adoption of ias39 on 1 april
2005 net debt increased by £387 million to
£858 million 2005 – £471 million interest
cover was 99 times 2005 – 116 times
dividend
in line with its stated dividend policy the
board proposes an increase of 06p 31
in the total dividend for the year to 200p
this is covered 21 times by earnings 
before exceptional items and amortisation 
the proposed final dividend of 141p 
2005 – 137p will be due and payable 
on 27 july 2006 to all shareholders on 
the register at 30 june 2006
directors
as stated in last year’s annual report 
allen yurko retired from the board on 28 july
2005 and dr barry zoumas was appointed
as a nonexecutive director from 1 may
2005 he has agreed to chair our newly
formed research advisory group of which
more details are set out in the chief
executive’s review
carole piwnica will be retiring as a non
executive director at the annual general
meeting on 19 july 2006 having served 
on the board for approaching ten years 
the board thanks her for her commitment 
to the company and her considerable
contribution to its strategic development
robert walker was appointed as a non
executive director from 1 january 2006 
he is currently chairman of wh smith
and brings to the board an indepth
knowledge of the food and beverage 
sector having spent much of his earlier
career working for companies such as
procter  gamble and pepsico
corporate social responsibility
for tate  lyle corporate social
responsibility means applying our four 
core values – safety integrity knowledge 
and innovation – to the way we run our
business this involves continuous progress
in achieving the highest standards of safety
considering the environmental impact of
every aspect of what we do and treating our
employees suppliers and the communities
in which we work as longterm partners 
the group continues to be a constituent 
of ftse4good the uk corporate social
responsibility index it is pleasing to report 
a third consecutive calendar year of
improvement in the group safety index this
year by 394 and that energy consumption
per unit of production showed a useful
reduction of 36 beating our group target
of 3 per annum
tate  lyle’s uk occupational health
programme has also been acknowledged 
as a model of excellence by the uk national
health service the department of health 
is interested in using our programme which
includes health promotion activities an
occupational health clinic advice on healthy
eating and counselling services as an
example of best practice to launch the
department’s new initiative business
communities of health 
board effectiveness
during the year the board once again
carried out a review of its effectiveness 
and that of its committees led by myself
the 2006 evaluation based on onetoone
interviews with the directors the company
secretary and the group human resources
director followed a similar process to the
one held in 2005 and as in the previous
year the 2006 evaluation concluded that 
the board and its committees were
operating effectively recommendations
such as improvements to the format of
strategic papers provided to the board and
the content of the agenda for the annual full
day strategy review have been implemented
a full session of the board is planned for
july 2006 to consider other outputs of the
effectiveness review
strategy
our strategy remains to increase the value
added component of our business which
has grown substantially over recent years
both in absolute profit terms and as a
proportion of the group’s total profit 
growth continues to be driven by a good
performance from our global food
ingredients business through innovative
marketing and the successful expansion 
of splenda
®
sucralose manufacturing
capacity and sales 
this has in many respects been a year of
transition where one of our objectives has
been to invest for growth we have made
significant progress towards the completion
of several key investments to facilitate 
that objective  08 tate  lyle annual report 2006
chief executive’s review
“the splenda
®
sucralose business
again performed strongly and 
we significantly increased the
contribution from our core value
added ingredient products”
overview
tate  lyle performed well in the 2006
financial year and achieved good profit
growth despite a challenging environment
the splenda
®
sucralose business again
performed strongly benefiting during the
year from the first stage of expansion to the
mcintosh alabama facility we significantly
increased the contribution from our core
value added ingredient products and it was
also pleasing to note the margin gains we
achieved on commodity products in the
2006 calendar year’s sweetener pricing
round in the us
a number of factors have partially offset
these positive performances firstly higher
global energy prices added £30 million 
to our energy costs and also increased
ingredient and transport costs secondly
profits were depressed by lower margins 
for sugar and related products in the eu 
and higher export licence costs at sugars
europe these arose as a consequence of
oversupply as the market begins to adapt 
to the changes resulting from reform of the
eu sugar regime 
all our expansion projects which will
promote longer term value added growth
across the business are progressing
satisfactorily the capital projects to double
the mcintosh alabama sucralose production
capacity acquired under the realignment 
of the splenda
®
sucralose activities have
been completed and commissioning is
under way the new singapore sucralose
facility and our new joint venture plant with
dupont to produce biopdo
tm
from
renewable resources should both begin to
come on stream in our financial year ending
31 march 2007 the project to increase
value added capacity in our sagamore
facility in the us is also scheduled to be
completed in that year and the loudon
expansion is due for completion in the year
to 31 march 2008 
in line with our value added growth strategy
we completed two bolton acquisitions
during the year the acquisition of the italian
based cesalpinia foods was completed in
december 2005 and that of us speciality
food ingredients company continental
custom ingredients inc was completed in
january 2006 for a combined consideration
of £72 million both businesses have been
customers of tate  lyle for a number of
08 tate  lyle annual report 2006 tate  lyle annual report 2006   09
years and together we will be more
responsive in developing distinctive and
innovative solutions for the food industry 
the acquisitions made profits in line with 
our expectations in the final months of the
financial year these acquisitions represent 
a further step in broadening our product mix
technology and customer base in rapidly
expanding areas such as blends and
fortification and may be supplemented by
the acquisition of further bolton businesses 
in april 2006 just after the yearend 
we completed the acquisition of the assets 
and intellectual property of hycail bv and 
its finnish subsidiary hycail finland oy 
hycail develops polylactic acid polymers 
and resins a biodegradable plastic made
from renewable resources this modest 
£2 million initial investment strengthens 
tate  lyle’s knowledge and resources 
in the field of industrial ingredients from
renewable resources
this investment supplements our internal
research and development capability 
which we consider a key differentiator 
for tate  lyle we continue to invest
substantially in this area increasing
headcount by 45 and cost by 5 in the 
year to 31 march 2006 to improve oversight
and give an external perspective we have
established a research advisory group
chaired by dr barry zoumas one of our
nonexecutive directors the committee
comprises external experts and senior 
tate  lyle people it will review our research
and development portfolio and provide
insight into how leading edge technologies
could apply to future developments
we have also established tate  lyle
ventures our fund to invest in new products
and technologies that are closely aligned
with our strategy it will complement our
existing research and development and
partnering activities and will be formally
launched once the necessary regulatory
approvals have been obtained
we are consolidating the global marketing 
of tate  lyle’s current range of value added
and functional food ingredients into one
team our new global food ingredients
group this team will take tate  lyle 
into new ingredient areas and growth
opportunities this change to the structure
and leadership of tate  lyle’s businesses
reflects the acceleration of the group’s
growth strategy and our continuing
commitment to delivering excellence 
in customer service 
under the new european sugar regime
proposals our greek corn processing plant
part of food  industrial ingredients
europe is not viable we therefore propose
to close the plant which has an isoglucose
quota of 13000 tonnes by september
2008 we have entered an information 
and consultation phase with employees
proceeds from the surrender of quota will
mitigate the cash closure costs 
as part of our commitment to vigorously
defend and enforce our sucralose patents
we announced on 23 may 2006 that we 
had filed suit in the us district federal court 
for central illinois against a chinese
manufacturing group based in hebei
province as well as six importers of
sucralose into the us the proceedings
allege infringement of patented sucralose
manufacturing technology in respect of
sucralose manufactured in china 
group profit before tax exceptional items
and amortisation of £295 million was a 
16 improvement on the prior year 2005 –
£254 million group profit before tax after
exceptional items and amortisation was 
£42 million 2005 – £205 million
net debt has risen from £471 million 
at 31 march 2005 to £858 million at 
31 march 2006 
group targets
despite the growth in profits outlined above
this has in many ways been a year of
transition as we invest for growth
■ we have increased the contribution of
total value added products to group
profit before interest exceptional items
and amortisation from £132 million to
£161 million the changes to the eu
sugar regime will however reduce the
contribution from the commodity quota
constrained and consumer branded
segments over the next few years 
this makes our current target of a
contribution from total value added 
of 60 of group profit before interest
exceptional items and amortisation
achievable for the wrong reasons 
given uncertainty over how the eu sugar
regime will impact the group over the
next few years and the number of capital
projects that are coming to fruition we
have decided to replace this target with
a new oneyear target for profit before
interest exceptional items and
amortisation from total value added
products to increase by 30 in the 
2007 financial year
■ the net debt to ebitda earnings before
exceptional items and before interest 
tax depreciation and total amortisation
multiple has increased from 12 times 
to 19 times our maximum target for 
net debt to ebitda is 25 times
■ interest cover was 99 times this
remains robust underpinning our
investments in future growth and our
progressive dividend policy our minimum
target remains 50 times
■ all businesses have a target on both
economic and environmental grounds 
to reduce energy consumption on a per
unit basis by 3 per year it is pleasing 
to report that in the 2005 calendar year 
the group beat this target achieving 
a reduction of 36 at prevailing energy
prices we would expect energy costs 
to increase by £45 million in the year
ending 31 march 2007 and the total
energy bill for the year after taking into
account increased production to exceed
£250 million we have in place contracts
and hedges that cover around twothirds
of our estimated energy usage for the
2007 financial year
segmental reporting
this is the first full year under our new basis
for segmental financial reporting this analysis
is presented along product lines rather than
the geographic analysis previously reported
and we believe that this will give a more
meaningful analysis of our activities
performance of main businesses
food  industrial ingredients americas
produced a very strong performance 
with all of its major operations showing 
net gains despite higher energy and other
manufacturing costs sales were up 9 
at £1127 million and profit before interest
exceptional items and amortisation of 
£125 million was up 30  10 tate  lyle annual report 2006
food and industrial products improved 
due to higher volumes and increased gross
margins increasing the contribution from
core value added products sweetener
volumes were higher overall sweetener
gross margins improved following the 2006
calendar year sweetener pricing round 
net corn costs were lower ethanol benefited
from increased margins due to higher
gasoline prices and benign corn costs 
the recovery of the citric acid product line
continued with increased profitability
although this was constrained by higher
input costs tate  lyle custom ingredients
the former continental custom ingredients
inc business acquired in january 2006
made a modest profit in the final months 
of the financial year in line with our
expectations 
all major capital expansion projects are 
on schedule construction continues to
progress satisfactorily at the biopdo
tm
plant in loudon tennessee and also at
loudon and sagamore where expansion of
the value added food ingredient and ethanol
facilities is taking place the biopdo
tm
facility is expected to commence
commissioning during the middle of the
2006 calendar year
at food  industrial ingredients europe
sales were down 6 at £719 million with
higher volumes offset by lower prices
reflecting the calendar 2005 pricing round
profit before interest exceptional items and
amortisation was up 5 at £46 million
selling prices for isoglucose have been
squeezed due to an oversupply of sugar in
the market and impending changes to the
eu sugar regime favourable raw material
costs and improved selling prices for value
added and most other products in the 2006
calendar year pricing round partially
mitigated the impact of higher energy costs
and lower isoglucose prices tate  lyle
cesalpinia the former cesalpinia foods
business acquired in december 2005
performed in line with our expectations and
made a small profit in the last quarter of the
financial year 
in response to oversupply in the market 
the eu has withdrawn 25 million tonnes 
of quota from the sugar year ending in
september 2007 whilst we support this
action as an appropriate measure to correct
the balance of supply and demand it will
reduce isoglucose volumes however one 
of the provisions of the reform is the granting
of an additional isoglucose quota of almost
20 effective from october 2006 this will
partially offset the lower volume resulting
from the withdrawal
splenda
®
sucralose has continued to
enjoy buoyant demand across all major
food beverage and pharmaceutical
categories and performed strongly with 
sales of £142 million up 23 profit before
interest exceptional items and amortisation
of £68 million was 48 higher despite 
higher manufacturing costs mainly due to
increased energy and ingredient costs and
expansion related operational constraints
and startup costs of £5 million 2005 –
transitional costs £3 million 
the first mcintosh alabama plant expansion
has now been commissioned the second
phase of the expansion is also mechanically
complete and will be fully commissioned by
the middle of the 2006 calendar year these
two expansions will result in a doubling of
the mcintosh capacity compared to the
capacity of the plant when we acquired it 
in april 2004 with this increased production
capacity we will have additional product
available to build the customer base and
splenda
®
sucralose brand 
in 2004 when we decided to more than
triple the splenda
®
sucralose capacity 
we acquired under the business realignment
with mcneil nutritionals we took into
account our customers’ views of potential
demand with the first expansion to the
mcintosh facility completed and the second
expansion due to come on stream we are
building up production and accelerating our
work with customers on innovation and
reformulation construction of the new
singapore facility is on schedule to be
completed by january 2007  and has been
designed with the potential for capacity to
be expanded if necessary based on our
ongoing discussions with our customers
about their future plans we remain confident
of our ability to meet market growth in the
foreseeable future
sugars americas  asia sales were up 
15 to £273 million and profit before
interest exceptional items and amortisation
was up 35 to £27 million our sugar
operation in canada has performed as
expected despite the effect of increased
imports and higher energy prices the
results benefited from a marktomarket gain
on raw sugar inventory of £7 million due to
the higher prevailing world sugar price our
sugar business in vietnam achieved slightly
higher profits as higher selling prices more
than offset lower production due to a
drought results at occidente in mexico
were satisfactory although lower than the
previous year due to a change in sales mix
with higher export and lower domestic sales
at sugars europe sales were up 23 
at £1459 million but profit before interest
exceptional items and amortisation of 
£62 million was down 14 profitability 
in our eu sugar refining business has 
been substantially reduced impacted by
oversupply in the eu market coupled with
the expected higher cost of export licences
and higher energy costs both london and
lisbon refineries reported lower results than
the prior period the impact on the group
has been partially mitigated by a strong
performance from sugar trading achieving
an increase in profit before interest
exceptional items and amortisation of 
£13 million in what has been a volatile sugar
market this was also the main cause of the
increase in sales of the division sugar
trading has enjoyed two years of well above
average profits we believe that it is likely to
achieve a lower contribution in the 2007
financial year the eastern sugar joint
venture business continues to improve
although the quota reduction outlined above
will also impact this business in the 2007
financial year 
chief executive’s review continued
“all our expansion projects which will promote
longer term value added growth across the
business are progressing satisfactorily” tate  lyle annual report 2006   11
european sugar regime
the eu commission published a press
release on 24 november 2005 outlining the
final proposals for the reform of the eu sugar
industry tate  lyle fully understands the
need for reform of the eu sugar regime 
we welcome the proposals and in particular
the action by the commission to address
the imbalance of the impact on the cane
refining sector contained in earlier proposals
through the granting of transitional aid and
the extended period of stability until the end
of september 2015 contained therein
tate  lyle published its estimates of the
impact on the group on 25 november 2005
these estimates excluded other factors
which impact operating results such as the
effect of market forces during the transition
period to the new sugar regime and higher
energy prices since then our european
businesses have been affected by
oversupply of sugar within the eu with a
consequent effect on sugar pricing premia
this has reduced the profitability of those
businesses in the year to 31 march 2006
and is expected to depress margins for
sugar and related products further in the
year to 31 march 2007
as mentioned above the eu has announced
the withdrawal of 25 million tonnes of quota
for the sugar year ending in september
2007 this should have a beneficial impact
on pricing for sugar and related products but
the extent cannot be evaluated at this time
future quota withdrawals or cuts by the
commission cannot be discounted the
need for these will depend on supply and
demand which will be influenced by a
number of factors in particular the amount
of quota surrendered by manufacturers
as advised in our announcements of 
25 november 2005 and 29 march 2006
one consequence of the eu sugar regime
reform has been a review of the carrying
value of our european assets affected by 
the reform this is the principal element of
the total exceptional impairment charge of
£272 million the details of which are set out
in the operating and financial review we
propose to close our greek corn processing
plant which is part of food  industrial
ingredients europe by september 2008
the final detailed legislation resulting from
reform of the eu sugar regime may be
concluded only just before the start of the
new regime on 1 july 2006 although these
implementing regulations are not expected
to materially alter the key elements of the
new regime they will set the rules for the
daytoday running of the eu sugar market
as previously stated we anticipate that 
the impact of the reform on the results 
of the group will be at least offset by our
successful strategy to grow the total value
added component of our business 
a consistent objective since 1999
safety
tate  lyle has no higher priority than safety
which we believe is fundamental to running 
a successful business every year we
strengthen our commitment to ensure safe
and healthy conditions for our employees
contractors and visitors for the third
consecutive year safety performance across
tate  lyle has improved in all categories
reflecting our commitment to providing 
a safe workplace for all our employees
community involvement
tate  lyle aims to play a positive role in all
the communities in which we operate over
the years we have developed a groupwide
community involvement policy that forms
one of the core components underpinning
our ethical behaviour our programme
involves building longterm relationships with
local partners to deliver a shared objective
establishing strong safe and healthy
communities by investing time and 
resources into projects that directly 
address local needs
our community partnerships are very well
supported by employees many of whom
take part in programmes tate  lyle’s
community involvement benefits our
employees by enhancing their own local
community offering significant personal
development opportunities and making 
tate  lyle a company for which they are
proud to work the community involvement
policy is reviewed annually by the board 
conclusion
tate  lyle performed well in the 2006
financial year we have seen continued
success in our strategy of growing the total
value added component of our business 
this performance has been achieved despite
a challenging environment and we could not
have produced such a satisfactory outcome
without considerable effort and commitment
from our people around the world i would
like to take this opportunity to thank them 
for their dedication and contribution
looking forward management will 
be focused on three principal areas 
firstly to progress expansion projects under
way in the us and asia which will facilitate
continued value added growth across both
the food and industrial activities of the
business these projects will involve
substantial commissioning time and cost 
in the 2007 financial year they are central 
to our value added strategy and are
progressing satisfactorily 
secondly we will continue to build the
splenda
®
sucralose customer base 
and brand splenda
®
sucralose is a key
component in many of our new solution
sets developed for the food and beverage
industry we will also maintain our vigilance
in defending the brand and our intellectual
property 
and thirdly we are examining fundamental
options to mitigate the impact of the eu
sugar regime reform on the group
we continue to view tate  lyle’s future 
with confidence
iain ferguson cbe
chief executive
24 may 2006 12 tate  lyle annual report 2006
our consumer research programme in
europe and the americas has been running
for over two years and provides us with 
both qualitative and quantitative data on
people’s dietary habits lifestyles and 
health aspirations
this knowledge ensures that our product
development programme meets the 
needs of the market both today and in 
the future it also helps our customers to
reformulate their trusted brands and deliver
their new products with confidence
understanding people’s lifestyles
to help our customers lead in 
the marketplace we research
people’s eating habits 
and aspirations tate  lyle annual report 2006   13
developing the right ingredients
we create innovative products 
from renewable resources 
people around the world are looking to
renewable resources to provide everything
they need from food to fuel our scientists
have been developing food and industrial
ingredients from renewable resources 
corn wheat and sugar for over 80 years 
to complement our existing research and
development team we have established 
tate  lyle ventures a fund to invest in new
products and technologies by continuing
to develop our research and knowledge 
we are helping to meet the world’s 
increasing demand for products from
renewable resources 14 tate  lyle annual report 2006
investing for growth
we are building new plants
new capacity and new
technology
we are investing to grow our business and 
to meet increasing customer and consumer
demand for our products our new 
biopdo
tm
joint venture plant in loudon
tennessee will come on stream in 2006 
we are building a new splenda
®
sucralose
plant in singapore and have doubled capacity
at our existing plant in mcintosh alabama
in sagamore indiana we are investing 
£57 million to increase capacity for value
added food starches used in dairy
beverages baking snacks and dressings
in loudon tennessee we are investing 
£43 million to produce value added
ingredients ethanol and substrate for 
the nearby biopdo
tm
joint venture plant
both these investments will not only help
grow our value added business but will also 
bring significant environmental benefits our solutions combine unique sets 
of ingredients with innovative product
development services to meet the needs 
of our food and beverage customers 
we provide these solutions through 
four services
tate  lyle create
®
innovations in shape structure taste and
texture – helping make our customers’
products even more exciting and distinctive
tate  lyle optimize
®
maximising efficiency and added value
services – helping our customers meet 
their cost and margin targets
tate  lyle rebalance
®
reformulating to lower fat lower sugar and
lower calorie positions without compromising
on taste
tate  lyle enrich
®
enhancing the nutritional benefits of
products without compromising on taste
offering distinctive solutions
our core
tm
range of services
helps our customers maximise
the potential of their products
and brands 
tate  lyle annual report 2006   15 creating recipes 
for success
splenda
®
sucralose
provides millions of people
around the world with 
a wider choice of great
tasting reducedcalorie
food and beverages than
ever before
driven by its great sugarlike taste and
unique functionality the no calorie sweetener
splenda
®
sucralose is now an integral
ingredient in over 4000 products 
the majority of splenda
®
sucralose is sold
to food producers introducing splenda
®
sucralose to a food can be a complex
science – it’s not always a simple case 
of ingredient substitution 
one gram of splenda
®
sucralose can
replace the sweetness of 600 grams of
sugar but removing that sugar can adversely
affect mouthfeel body and texture our
technical services teams use their unique
expertise and our extensive portfolio of
ingredients to ensure that when customers
use splenda
®
sucralose in their products
they are able to replace the functionality 
lost when sugar is taken out because we
specialise in food ingredients we understand
how ingredients work together to create a
great product we don’t just sell ingredients
from ingredient choice and reformulation to
giving consumers the taste experience they
want we help our customers at every stage
16 tate  lyle annual report 2006 tate  lyle annual report 2006   17
making biobased 
living a reality
with our pioneering 
new polymer ingredient 
biopdo
tm
 we are turning 
corn into clothes
this year sees the commercial opening 
of our joint venture plant with dupont to
produce biopdo
tm
 an innovative new
monomer made from corn that is used to
produce dupont’s sorona
®
polymer sorona
®
is extremely versatile and can be used to
create a range of textiles from soft silky
fabrics to robust stainresistant carpets
making biopdo
tm
uses significantly 
less energy than petrochemicalbased
alternatives saving around 92 million litres
20 million gallons of oil a year – good 
for us and good for the environment 18 tate  lyle annual report 2006
delivering great products
eating drinking washing or
reading people benefit every 
day from products that taste
feel and work better thanks 
to our ingredients
tom
don’t forget to buy some
washing tablets
salad dressing
lozenges
detergent
orangeade
yoghurt
biscuits
muesli bars
bread
jam
toothpaste
and a new notepad
xx tate  lyle annual report 2006   19
behaving responsibly means considering the
effects of our operations on our people our
partners the communities we work in and
the environment and building their needs
and concerns into the commercial decisions
we take about our business we define our
responsibilities in terms of the safety and
health of our employees and contractors 
the environmental impact of our operations
and products and the nature of the
relationships we build with our suppliers 
and the communities in which we work 
for more details see the corporate social
responsibility section of the operating 
and financial review on pages 35 to 41
a responsible business
from safety at work to
partnering with local
communities we take a
responsible approach 
to everything we do
“our us staff helped
raise over 56000
for the american
red cross hurricane 
katrina relief fund”
“our business in
vietnam ensured over
2000 children in 27
primary schools were
provided with school
bags and stationery” 20 tate  lyle annual report 2006
operating and financial review
business description
tate  lyle is a world leading maufacturer 
of renewable food and industrial ingredients
founded in the uk in 1921 tate  lyle is 
a global company with more than 65
production facilities in 29 countries
predominantly throughout europe the
americas and south east asia
tate  lyle has its roots in a number of 
wellestablished companies focused on
sugars in europe and canada wheat and
corn milling in europe and corn milling in 
the us all our ingredients are produced
from renewable crops predominantly corn
maize wheat and sugar but on a smaller
scale incorporating other agricultural
products we take these renewable crops
and transform them through the use of
innovative technology into value added
ingredients and solutions for food beverage
and industrial customers across the world
the group operates through five divisions
■ food  industrial ingredients americas
■ food  industrial ingredients europe
■ sucralose
■ sugars americas  asia and
■ sugars europe
these divisions are supported by a number
of global business groups and the corporate
head office in london 
a description of the performance of the 
tate  lyle group and each of its five
divisions for the year ended 31 march 2006
and significant developments which
occurred during the year is set out in the
chief executive’s review on pages 8 to 11
and on pages 26 to 34 of this ofr
strategy and objectives
tate  lyle’s purpose is to create the world’s
leading renewable ingredients business 
in order to grow our business and create
value for our shareholders our strategic
objectives are to
■ grow the contribution from value 
added products
■ invest in acquisitions and partnerships
■ unite our business
■ operate efficiently
■ invest in technology and people and 
■ serve our customers
each of these strategic objectives is
explained in more detail below
grow our value added products
we are committed to continuing to grow 
the contribution from our value added
products such as our speciality food
starches and sweeteners and splenda
®
sucralose and to develop other products
such as biopdo™ by providing distinctive 
highvalue products and solutions for our
customers we will benefit from higher
margins and greater earnings stability
invest in acquisitions and partnerships
tate  lyle has expanded its business
through selected acquisitions we continually
evaluate opportunities that would add
strategic value by enabling us to enter new
markets or add products technologies and
knowledge more efficiently than we could
organically
we also expect to grow our business by
forming joint ventures and partnerships to
develop and distribute new products and 
to enhance the capabilities of our existing
ingredient portfolio as we have found with
our global alliance with mcneil nutritionals
for splenda
®
sucralose and with our joint
venture with dupont for biopdo™ using
alliances and joint ventures can be an
efficient way to lower our cost of investing 
in new areas and markets and help secure
access to new and complementary
technology and expertise 
unite our business
tate  lyle has a customerfocused global
approach to marketing to support this
approach all of our divisions operate
together under the ‘tate  lyle’ name this
enables us to present a consistent global
portfolio of distinctive profitable highvalue
products and services to our customers
to accelerate our growth strategy we have
formed a new global food ingredients
group this new group will focus on
coordinating our customerfocused activities
so as to maximise the profitability and
market reach of our range of value added
and functional food ingredients as well as
taking us into new ingredient areas and
growth opportunities in the future
operate efficiently
we are committed to being a lowcost
producer through our expertise in high
volume process management our focus on
technical and manufacturing excellence and
the efficient use of services such as logistics
and utilities we are continually working to
improve the efficiency of our operations
invest in technology and people
we are increasing our investment in our
research and development capabilities to
underpin our strategy to grow our value
added products we believe this is a key
differentiator for tate  lyle we are
recruiting more scientists and increasing
expenditure to help us develop innovative
solutions that meet our customers’ product
challenges we are also leveraging our
research and development capabilities
through business and technology
partnerships university collaborations and
investments in startup companies
to develop talent improve leadership and
help our employees succeed we are
implementing ‘the tate  lyle people
strategy’ this consists of various
programmes designed to ensure we have the
right skills at all levels to grow our business
and to enable our employees to meet new
challenges as their careers progress
serve our customers
delivering excellent customer service is 
at the core of everything we do and we
consistently monitor our performance using
a variety of measures our global quality
service and standards set consistent high
levels of service and quality which are
expected to apply across the group 
this enables us to fulfil our customers’
requirements efficiently wherever we 
operate in the world
our aim is to ensure that we can help our
customers develop more successful and
innovative consumer products tate  lyle’s
strategy is to be the partner of choice in our
customers’ innovation processes at the
highest level this involves getting a better
understanding of our customers’ longer 
term strategic direction and current
consumer trends in order to strengthen 
our relationships 
introduction
this operating and financial review ofr
provides a broader perspective of tate 
lyle’s business to enable a more informed
judgement to be made of the group’s
financial performance and prospects
forwardlooking statements
the ofr contains certain forwardlooking
statements with respect to the financial
condition results operations and
businesses of tate  lyle these
statements and forecasts involve risk and
uncertainty because they relate to events
and depend upon circumstances that will
occur in the future there are a number 
of factors that could cause actual results
or developments to differ materially from
those expressed or implied by these
forwardlooking statements and forecasts ■ tate  lyle enrich
®
– enhancing the
nutritional benefits of foods and beverages
without compromising on taste
during the year we commercialised
solutions for a wide range of products
including flavoured waters yoghurts 
ice creams breakfast cereals and dressings 
our solutionsbased approach has also
changed the way we take our products to
market and the way we work with and are
perceived by our customers providing us
with new opportunities to sell our products
and grow our business
customers
we principally sell our ingredients solutions
and services to food beverage and industrial
manufacturers we also sell endproducts
directly through retail distribution channels 
to retail customers we serve about 6000
customers at 13000 locations around the
world and our customer base includes many
of the major global food beverage and
industrial companies they purchase our
ingredients to manufacture their consumer
and industrial products
as shown in the table below our renewable
ingredients portfolio can be broadly split into
ten segments serving a customer base that
extends from branded and ownlabel foods
and beverages to household and industrial
products paper and animal feeds 
tate  lyle annual report 2006   21
to develop our customer relationships
further throughout our business we have 
set up crossfunctional teams consisting 
of people drawn from research and
development marketing sales finance 
and customer service these teams work
with our customers to provide both
consumer and customer insights and 
to look at support and product 
innovation opportunities
operating environment
markets
tate  lyle participates in diverse markets
■ food and food ingredients – from refined
sugar and simple starches to higher value
products such as complex starches and
functional sweeteners including the no
calorie sweetener splenda
®
sucralose
■ industrial biomaterials – from basic 
biomaterials such as paper starches 
and fuel ethanol to more advanced 
biomaterials such as biopdo
tm
 
a monomer made from corn which can
be polymerised by dupont into a textile
called sorona
®

■ other nonfood markets such as
pharmaceuticals and personal care
where for example we produce high
value modified starches which can be
used to provide texture and stability in
facial lotions 
■ animal nutrition ingredients – from feed
molasses to aquasta™ astaxanthin 
an essential nutrient for farmraised fish
produced through a unique fermentation
process from renewable resources
currently the most important driver of
growth for our business is value added food
ingredients in this market tate  lyle
operates primarily within the categories of
sweeteners functional foods fat replacers
hydrocolloids emulsifers and acidulants
solutions
alongside our broad range of distinctive high
quality sweeteners and food ingredients we
also offer tailored solutions for our customers
these are unique combinations of ingredients
or services that allow food manufacturers to
achieve certain goals such as nutritional
reformulation cost reduction or enrichment
without compromising on taste and texture
tate  lyle’s solutions are marketed under
four services namely
■ tate  lyle create
®
– innovations 
in shape structure taste and texture
■ tate  lyle optimize
®
– maximising
efficiency and added value services 
to help our customers meet their cost
and margin targets
■ tate  lyle rebalance
®
– reformulating
to lower fat lower sugar and lower calorie
positions without compromising on taste
and texture
allegra
tm
other fermented products
alcohols and polyols
biogums
acidulants
proteins
splenda
®
sucralose
sugars syrups and molasses
cereal sweeteners
cereal starches
foods ••••••••••
beverages ••••••
dairy ••••••••
confectionery and desserts •••••••• •
snacks and bars •••••••• •
alcoholic beverages •••••
household products such as detergents washing liquids 
cosmetics and toothpaste •• ••
tate  lyle consumerbranded products •
pharmaceuticals tablets syrupbased medications 
effervescent and fortified products •••• •••
industrial products building engineering energy etc • • ••••
paper and board products •
textiles ••
animal feeds ••• • • •
our renewable ingredients portfolio can be split into ten segments
our ingredients can be found in 22 tate  lyle annual report 2006
competition
the starch industry is concentrated around 
a small number of large participants who
operate in many different application areas
including food beverage paper and
pharmaceuticals the us accounts for over
half of global starch production our main
competitors in the us for corn wet milling
and starchbased products are archer
daniels midland company corn products
international and cargill national starch a
subsidiary of ici plc is another significant
competitor in the us particularly in relation
to higher value modified food and industrial
starches as well as penford corporation in
the north american paper starch industry 
in europe our main competitors in the
starch industry are cargill and roquette
frères competition for our european sugar
business comes mainly from british sugar 
a subsidiary of associated british foods
plc südzucker nordzucker and tereos 
the main competitors for our global food
ingredients business are cargill danisco
kerry and national starch
governmental regulation
some of the markets in which tate  lyle
operates are subject to significant influence
from legislation or regulation the main
regulatory development during the year
related to the reform of the eu sugar regime
more information on the impact of this
reform on the group is explained in the 
chief executive’s review on page 11
another development during the year
occurred in november 2005 when the anti
dumping and countervailing duties which
provide protection to the canadian domestic
sugar industry in which tate  lyle operates
were renewed for a period of five years
products and their uses
tate  lyle’s major products together with
information about the ways they are broadly
used are detailed below the table on pages
4 and 5 shows the regions from which these
products are manufactured and distributed
cereal sweeteners and starches
cereal sweeteners
we believe we are one of the leading
producers of cereal sweeteners and starches
in the world we believe we are among the
top three producers of sweeteners and
starches in the european union eu and 
we hold the largest share of the current eu
quota for isoglucose the european name 
for high fructose corn syrup – hfcs this
aspect of our business involves the
production and marketing of ingredients
produced from corn and wheat for the food
and industrial sectors our corn sweeteners
such as hfcs glucose syrup fructose
dextrose and maltodextrins are widely
employed in the production of soft drinks
and as feedstocks in the brewing and
fermentation industry 
starches
our highly functional value added food
starches add texture and body to food as
well as bind together ingredients offering
stability and moisture retention our starches
can also improve the shelflife of processed
foods and snacks and are used to produce
the texture and other quality features of
consumer products such as chewing gum
cosmetics toothpaste and pharmaceutical
applications we are also a key player in 
the production of nonfood starches for
industrial markets we supply textile 
paper corrugated board and plasterboard
manufacturers and the building industry with
industrial starches in the paper industry
native and speciality starches are used to
increase dry paper strength and improve
surface conditions speciality starches are
used in the manufacturing of corrugated
board to bond the different layers of paper
starches are used in adhesive and building
product applications and in the textile
industry to increase weaving efficiencies
sugar and related products
we are a world leading producer of sugar
processing cane and beet both for industrial
customers and retail sale we also produce
value added and consumer branded sugar
products such as lyle’s golden syrup and
tate  lyle light cane a sugar and
sucralose blend we have strengthened 
this core business by adding a variety of
other products which are produced from
natural byproducts of the refining or
processing of sugar
cane and beet sugar
sugar is produced from either sugar cane 
or sugar beet refined sugar syrups and
treacles are used to provide natural
sweetness texture colour and flavour
across a full range of food and drink
applications we are the largest producer 
of cane sugar in the eu we are the uk’s
sole cane sugar refiner and produce over 
13 million tonnes of cane sugar per annum
from our refineries in london england and
lisbon portugal we are a leading retail
brand in the uk supplying a full range of
retail and domestic sugars as well as more
specialised products including lyle’s golden
syrup we operate cane sugar refineries in
canada and vietnam and a joint venture in
mexico which supply customers in those
regions we also operate a joint venture
processing beet sugar in central and
eastern europe in addition to refining sugar
our global trading operation purchases and
trades sugar in markets across the world 
in general we purchase sugar from major
sugar producing regions such as brazil and
sell it into countries with sugar deficits
molasses
molasses is the versatile byproduct of cane
and beet sugar production it offers various
benefits as an animal feed provides a raw
material for fermentation and is also used in
a diverse range of other industrial processes
we have been able to leverage our position
as a leading sugar manufacturer to become
a market leader in the international trading
distribution and storage of molasses with
operations in over 20 countries we have
developed the expertise we gained from
storing molasses to establish an ancillary
business of storing for our customers other
commodities in bulk liquid storage facilities
around the world
splenda
® 
sucralose
splenda
®
sucralose is a no calorie high
intensity sweetener that is made from sugar
splenda
®
sucralose offers the taste of
sugar without the calories as a food
ingredient its proven stability means that
products using splenda
®
sucralose will
retain their sweetness over time helping to
preserve the optimal balance of sweetness
and flavour splenda
®
sucralose can 
be used successfully in high temperature
processing such as sterilisation
pasteurisation canning and extrusion 
it is used today to sweeten more than 
4000 foods and beverages worldwide
acidulants alcohol polyols and proteins
acidulants
from a base of sugar dextrose or molasses
we produce acidulants such as citric acid
fumaric acid malic acid potassium citrate
and sodium citrate we are one of the
world’s leading producers of citric acid 
citric acid is used as a flavour enhancer and
to retard spoilage in a wide range of foods
and beverages as well as forming the basis
of detergents and pharmaceuticals
alcohol
we have expanded our product offering by
using the raw ingredients of corn wheat and
sugar to become a producer and distributor
of a range of alcohol products these are
used in the manufacture of beverages and
operating and financial review continued tate  lyle annual report 2006   23
vinegar as well as industrial products such
as paint or blended with gasoline and used
as a fuel we produce fuelgrade alcohol
ethanol in both europe and the us and 
in europe our potable grain alcohol is found
in some of the uk’s leading brands of spirit
based drinks
polyols
polyols such as sorbitol are used by 
both food and pharmaceutical companies 
to sweeten and retain moisture and can 
be found in toothpaste and chewing gum
proteins
in addition to starches and sweeteners 
the processing of corn and wheat produces
proteins wheat proteins such as vital wheat
gluten and soluble wheat proteins can be
employed in a variety of food and animal
feed products to provide valuable functional
and nutritional benefits for example vital
wheat gluten is used in baking to reinforce
the flour guarantee stable dough processing
and improve loaf volume
biogums
we produce biogums such as xanthan gum
used by the food industry to provide texture
and viscosity to sauces and dressings and
as low calorie fat replacers and stabilisers
our stanzan x
®
industrialgrade xanthan
gum is used in the oilwell drilling industry 
as a lubricant and coolant our gum range
has recently been expanded through the
acquisition of cesalpinia foods to include
locust bean and guar gums 
advanced biomaterials
textile polymer ingredient biopdo
tm
 
made from corn by dupont tate  lyle
bioproducts will be commercially available 
in the financial year ending 31 march 2007
it is used by dupont to produce sorona
®
which has a wide range of textile
applications from swimwear to carpets
other products
we also produce alleggra™ and aquasta™
alleggra™ is a unique soybased alternative
to liquid and powdered eggs and can be
used for a variety of sweet and savoury
product applications aquasta™ is an
essential nutrient for farmraised fish which
we manufacture in joint venture partnership
with igene biotechnology inc
key performance
indicators
tate  lyle’s board and group management
committee monitor a range of financial 
and nonfinancial performance indicators
reported on a periodic basis to measure the
group’s performance over time of these
the key performance indicators kpis are
■ contribution from value added products
■ the net debt to ebitda earnings before
exceptional items and before interest tax
depreciation and total amortisation
multiple
■ interest cover
■ energy reduction and
■ the safety index score
targets are set anually for these kpis in 
line with the group’s strategic objectives
performance data in relation to the kpis for
the year ended 31 march 2006 and for the
prior year can be found in the table above
the targets which have been set 
for the year ending 31 march 2007 are
explained in the chief executive’s review 
on page 9 and set out in the table above
resources
the group has a number of key resources
that help it achieve its strategic objectives
people
tate  lyle employs 7000 people in its
subsidiaries with a further 4800 employed in
joint ventures our workforce encompasses
a broad range of skills and experience in
areas such as food science sales and
marketing engineering and business
support services
it is a key objective for the group to attract
and retain top quality recruits and to ensure
that our employees develop and grow in
their roles and meet new challenges as their
careers progress to help achieve these
objectives we have developed and are
implementing ‘the tate  lyle people
strategy’ this consists of four main
components
■ behaviours for success – this
encourages our people to display 
strong leadership at all stages of 
seniority by exhibiting identified key
characteristics and behaviours we 
need for success such as a focus 
on excellent customer service
■ talent management – this is a system
which addresses key business issues
such as succession planning and filling
development gaps to ensure we have the
right skills to grow the group at all levels
■ leadership programme – this provides
managers and supervisors across the
group with the opportunity to improve
their skills and expand their knowledge
through a number of tailored
programmes seminars and courses
■ graduate recruitment – a groupwide
graduate recuitment programme to
attract and develop top talent building
on the existing successful programmes
already operated by our business
divisions
tate  lyle’s remuneration polices are
designed to attract retain and reward
employees of the highest calibre and
experience to help execute the 
group’s strategy
key performance indicators target in 2007 2006 2005
contribution from value added
products
1
30 increase £161m £132m
net debt to ebitda multiple
2
maximum 25 times 19 times 12 times
interest cover
3
minimum 50 times 99 times 116 times
energy reduction
4
30 36 24
safety index score
5
zero 172 284
1
a oneyear target has been set for the financial year ending 31 march 2007 to increase the profit before interest
exceptional items and amortisation from value added products by 30 in the year ended 31 march 2006 the
contribution from value added profit before interest exceptional items and amortisation of £161 million consisted 
of £68 million from sucralose and £93 million from core value added products
2
ebitda is earnings before exceptional items and before interest tax depreciation and total amortisation as stated
above the target of 25 times is a maximum target level
3
based on profit before interest exceptional items and amortisation as stated above the target of 50 times is a
minimum target level
4
our businesses have a target to reduce energy consumption on a per unit basis by 3 per year information on our
environmental performance is on page 37
5
the safety index compares safety performance across the group and is a weighted average of injuries sustained in the
workplace with more severe incidents having greater impact a decrease in the index reflects improved performance
information on our safety performance is on pages 35 and 36 24 tate  lyle annual report 2006
research and development
to underpin our strategy to grow the
contribution from our value added products
we are continuing to invest in research and
development we believe this is a key
differentiator for tate  lyle in the year
ended 31 march 2006 we employed a
further 45 qualified scientists and associated
staff and the cost of research and
development increased by 5 we also
established tate  lyle ventures a fund 
to invest in new products and technologies
that are closely aligned with tate  lyle’s
strategic objectives
patents
tate  lyle maintains a significant number 
of patents to support its businesses 
and protect its competitive advantage 
much of the product innovation and
development work carried out by our
research and development teams results 
in patentable new technology we monitor
market developments closely to identify 
any potential violations of our patents 
and take appropriate legal action where
considered necessary
risk factors
tate  lyle may be affected by a number of
risks not all of which are within our control
outlined below is a description of some of
the risk factors that may affect our business
and share price other factors besides those
listed below may also adversely affect the
group the process tate  lyle has in place
for managing these risks is described in the
corporate governance report on page 52 
there are inherent risks and uncertainties
behind all the forwardlooking statements
contained in this section which could have 
a material impact on the future results along
with those discussed in the financial review
the following section contains our perception
of particular important risks and uncertainties
facing the group 
failure to act safely could have a
detrimental impact on tate  lyle’s
operations
the safety of our employees contractors
suppliers the communities in which we
operate and the consumers of our products
is of paramount importance for tate  lyle
around the world the group is subject to
supranational national federal state and
local laws regulations rules and ordinances
relating to health safety and the environment
including pollution the protection of the
environment and the generation storage
handling transportation and disposal of
waste materials the group recognises the
negative impacts that could arise from a
major safety or environmental incident which
include
■ fines or penalties for breach of safety
laws
■ interruptions in operations or loss of
licence to operate
■ liability payments and costs to employees
or third parties arising from injury or
damage and
■ damage to reputation
our success depends upon our
employees and the recruitment and
retention of key personnel
central to the success of tate  lyle’s
growth strategy is the performance
knowledge and skillsets of our key 
personnel and employees around the world
we recognise the need to attract integrate
and retain the talent required to fulfil our
ambitions and understand the negative
impact on results that could arise from 
an inability to retain key knowledge and
adequately plan succession 
noncompliance with legislation can lead
to financial and reputational damage
the group is aware of the importance of
complying with all applicable legislation
affecting its business activities and of the
potential damage to reputation and financial
impact which can result from any breach
fluctuations in prices and availability 
of raw material energy freight and other
operating inputs may affect our margins 
all our finished products are derived from
renewable agricultural raw materials all of
these materials are subject to fluctuations 
in price due to factors such as harvest and
weather conditions crop disease crop
yields alternative crops and byproduct
values in particular the ongoing changes 
in the eu sugar regime will increase the
importance of gaining access to adequate
supplies of raw sugar for our european
refineries energy usage in our production
facilities represents one of our main
production costs the group primarily
purchases coal oil and natural gas each 
of which is subject to price volatility due 
to fluctuations in both global and regional
supply and demand in some cases due to
the basis for pricing in our sales contracts
or due to competitive markets we may not
be able to pass on to our customers the full
amount of raw material price increases 
or higher energy freight or other operating
costs to our customers and this could
reduce our profitability
changes in consumer dietary
requirements and preferences or new
scientific evidence could decrease
demand for our products
a decline in consumption of one or more
product categories could occur in the future
due to a variety of factors such as concerns
about obesity and diabetes resulting in a
consumer preference for lighter lower calorie
beverages and foods or could occur in the
future if new scientific research or studies
were to raise material issues regarding the
adverse safety or health effects of food
products which are currently considered safe
and healthy although our product offering
contains alternative products to meet these
preferences and concerns we may not be
able to adapt our production and research
and development as rapidly as market
changes occur in the mix of products used
if there were found to be any longterm
detrimental effects to any of tate  lyle’s
products this could impact the group’s
future profitability
tate  lyle relies on the continued 
safe operation and the sufficiency 
of our geographically dispersed
manufacturing facilities
the group’s revenues are dependent 
on the continued operation of our various
manufacturing facilities and the consistent
production of finished products that meet
our customers’ specifications the operation
of our plants involves many risks including
the breakdown failure or substandard
performance of equipment explosion due 
to the flammable nature of some substances
used in production the improper installation
or operation of equipment natural disasters
potential product contamination and the
need to comply with environmental and
other directives of governmental agencies
any significant manufacturing disruptions 
or product contamination could adversely
affect our ability to make and sell products
which could cause our sales and operating
profits to decline
competitors may achieve significant
competitive advantage through
technological step change or higher
service levels
if our competitors were able to identify
develop and introduce on a commercial
basis a major technological step change
operating and financial review continued tate  lyle annual report 2006   25
such as significantly improving the efficiency
of the production process and lowering
costs or introducing a new product with
better functionality we may not be able 
to introduce a comparable change in 
our production process similarly we 
must ensure we at least match or 
exceed competitors’ service and quality
performance if we cannot compete
effectively with such innovation or 
service levels our sales and profitability
could decline 
we may not be able to protect our
intellectual property
our commercial success depends in 
part on obtaining and maintaining patent
protection on certain of our products and
successfully defending these patents against
third party challenge or infringements our
technology is protected from unauthorised
use by others only to the extent that it is
covered by valid and enforceable patents or
effectively maintained as trade secrets our
patents or patent applications if issued may
be challenged invalidated or circumvented
our patent rights may not provide us with
proprietary protection or competitive
advantages against competitors with similar
technologies others may independently
develop technologies similar to ours or
independently duplicate our technologies
due to the extensive time required for
development testing and regulatory review
of certain potential products our patents
may expire or remain in existence for only 
a short period following commercialisation
this would reduce or eliminate any
advantage of the patents we may face
litigation to assert claims of infringement
enforce our patents protect our trade
secrets or knowhow or determine the
scope and validity of others’ proprietary
rights we may be unable to enforce our
patents or otherwise protect our proprietary
rights which could have a material adverse
effect on our business financial condition
and results of operations
failure to deliver on major projects could
impact tate  lyle’s ability to maximise
both profitability and return on capital 
the successful completion of major projects
such as significant capital expenditure
projects acquisitions and establishing new
partnerships or joint ventures is important to
tate  lyle’s ability to both sustain and grow
the business 
the commoditisation of value added
products or a failure to achieve
appropriate margins could lead to 
greater price volatility
the natural life cycle of many products
means that value added products that
currently generate higher margins could
become commoditised in the future 
the relatively higher margins of value added
products compared to commodities could
attract new entrants or existing competitors
into our product markets which could in turn
lead to a decline in our sales or margins
equally a failure to recognise the true value
which the market places on our value added
products may mean that we do not sell at
the appropriate price and fail to achieve their
full profitability 
failure to manage joint venture or
partnership relationships effectively could
be detrimental to tate  lyle’s business
the group recognises that joint ventures
such as biopdo
tm
with dupont and other
commercial arrangements such as the
global alliance with mcneil nutritionals on
splenda
®
sucralose must be managed
effectively to ensure that both partners’
objectives are aligned and to maximise
financial and operational performance 
at the same time the group is aware of 
the importance of selecting new partners
carefully so as to avoid the potential negative
impacts on growth or profit levels of an
unsuccessful relationship
fostering the correct conditions for
growth is critical to tate  lyle’s success
the group acknowledges the significance 
of identifying appropriate markets in which 
to grow the business and in fostering the
correct conditions within the business to
achieve growth and to ensure that we
maximise returns we also understand the
importance of the lowcost focus within our
manufacturing facilities which provides a
sound base for this growth and the need 
to proactively respond to new market trends
and conditions failure to identify these
trends opportunities and potential threats
and then carry out proper evaluation and
execution could have an adverse effect on
our business
failure to maintain an effective system 
of internal financial controls could lead 
to financial irregularities and loss 
without its effective internal financial
controls the company could be exposed 
to financial irregularities and loss from
intentional or accidental acts which could
have a significant impact on the ability of the
business to operate this covers a variety of
areas ranging from safeguarding the assets
of the business to the accuracy and reliability
of its records and financial reporting
as a public company tate  lyle must
provide accurate and timely information
to the market to deliver longterm
shareholder value
the share price on the stock market is
based on the expectations of a wide variety
of market participants such as analysts
brokers investment funds and other
investors media stories or rumours can
influence these expectations failure to
provide accurate and timely information
failure to meet group targets or failure to
respond in an appropriate way could lead 
to uncertainty and volatility in the share price
and the erosion of shareholder value
exchange rate fluctuations could create
earnings and balance sheet volatility 
the group operates in many different
countries and is subject to currency
fluctuations arising on transactional foreign
currency exposures and the translation of
overseas subsidiaries’ results for example
a weakening of the us dollar and euro
against sterling would have a negative
impact on the sterling reported net assets
and shareholders’ funds
volatile capital markets could create a
shortfall in funding of retirement benefits
the group maintains various retirement
benefit plans for employees that are funded
through investments in equities bonds and
other investments the value of which is
dependent on world markets that can be
volatile the group may be required to
provide additional funding to cover any
shortfalls in our benefit plan funding arising
from falls in the value of these investments
any significant additional funding
requirements could adversely impact the
group’s financial position
these risks could have a material adverse
effect on our business accordingly our
overall success as a global business
depends in part upon our ability to succeed
in different economic social and political
environments and to manage and to mitigate
these risks 26 tate  lyle annual report 2006
basis of preparation
these financial statements are presented 
for the first time on the basis of international
financial reporting standards ifrs having
previously been reported under uk gaap 
the comparative information in respect of
the year to 31 march 2005 has been
restated other than accounting for financial
instruments for which ias32 and ias39
were adopted from 1 april 2005
summary of financial results
sales of £3720 million were £381 million 
or 11 above the prior year exchange rate
translation increased sales by £88 million
underlying sales growth was driven by an
increase of £74 million from sales of value
added products including splenda
®
sucralose and £232 million relating to higher
volumes and prices within the sugar trading
business these increases were partially
offset by the impact of lower selling prices 
in europe
profit before interest tax exceptional 
items and amortisation increased by 18
from £278 million to £328 million reflecting
increased profits from splenda
®
sucralose
food  industrial ingredients americas and
sugar trading partially offset by lower profits
from sugars europe exchange impacts
principally arising from the stronger us
dollar increased profit before interest by 
£8 million the margin of profit before
interest tax exceptional items and
amortisation as a percentage of sales
after exceptional items and amortisation 
was 63p 2005 – earnings of 306p
the board is recommending a 04p per
share increase in the final dividend from
137p to 141p to bring the total dividend for
the year to 200p per share 2005 – 194p
the proposed dividend is covered 21 times
by earnings before exceptional items and
amortisation 02 times higher than the
previous year
net debt increased by £387 million from
£471 million to £858 million due to capital
expenditure and an increase in working
capital
exceptional items and amortisation
exceptional items before tax totalled a net
charge of £248 million 2005 – £45 million 
an impairment charge of £272 million was
recognised comprising £263 million relating
to property plant and equipment in food 
industrial ingredients europe due to the
expected impact of the new eu sugar
regime regulations and £9 million relating 
to property plant and equipment in the citric
business in the uk which is reported as 
part of the food  industrial ingredients
americas division there was an exceptional
credit of £24 million resulting from a
reduction in the group’s us healthcare
liabilities following changes to the us
government’s federal healthcare provision
there were no net gains on disposal of
operations and assets 2005 – £10 million
net gain net exceptional charges after tax
totalled £229 million 2005 – £29 million
amortisation of acquired intangible 
assets totalled £5 million in the year 2005 –
£4 million this comprised £4 million relating 
to the patents acquired as part of the
splenda
®
sucralose realignment in 2004
2005 – £4 million and £1 million relating to
the intangible assets arising on acquisition
during the year of continental custom
ingredients inc and cesalpinia foods
segmental analysis of profit before 
interest exceptional items and 
amortisation 
the following paragraphs refer to profit
before interest exceptional items 
and amortisation
operating and financial review continued
increased from 83 to 88 exceptional
items amounted to a net charge before tax
of £248 million 2005 – £45 million consisting
mainly of an impairment charge of £272
million as described below amortisation
amounted to £5 million 2005 – £4 million
profit before interest and tax after net
exceptional charges of £248 million 2005 –
£45 million and amortisation of £5 million
2005 – £4 million was £75 million
compared with profit of £229 million in 
the year to 31 march 2005
net finance expense increased from 
£24 million to £33 million interest cover
before exceptional items and amortisation
reduced from 116 times to 99 times after
exceptional items and amortisation interest
cover reduced from 95 times to 23 times
profit before tax exceptional items and
amortisation was £295 million £41 million 
or 16 above the prior year’s profit of 
£254 million profit before tax exceptional
items and amortisation at constant
exchange rates increased by 13 after
adjusting for the £8 million favourable impact
of exchange translation profit before tax
after exceptional items and amortisation was 
£42 million compared with £205 million in
the year to 31 march 2005
diluted earnings per share before
exceptional items and amortisation for 
the year to 31 march 2006 were 417p 
2005 – 374p the diluted loss per share
financial review
group
year to year to
31 march 2006 31 march 2005
sales £3720m £3339 11 
profit before interest
1
£328m £278m 18
margin
1
88 83 05pts
1
before exceptional items and amortisation
food  industrial ingredients 
americas 31 
sales profit before interest 
food  industrial ingredients 
europe 19
sucralose 4
sugars americas 
 asia 7
before exceptional items and amortisation 
sugars europe 39
food  industrial ingredients 
americas 38 
food  industrial ingredients 
europe 14
sucralose 21
sugars americas 
 asia 8
sugars europe 19 tate  lyle annual report 2006   27
food  industrial ingredients americas 
had a good year with profits increasing by
£29 million to £125 million the margin of
profit before interest exceptional items and
amortisation over sales increased from 
93 to 111 exchange rate translation
increased profits by £4 million the division
benefited from strong performances in both
the value added and sweetener businesses
which more than compensated for
significantly higher operating costs our main
plants were operating at capacity for much
of the year
value added food and industrial ingredients
achieved good growth in both volumes and
margins sales of food and industrial grade
xanthan gum commenced during the year
sweetener results were enhanced by
deliveries to mexico and successful price
negotiations for the 2006 calendar year
ethanol benefited from a change in us
energy legislation that increased the
minimum usage requirement for ethanol in
fuel consequently profits increased due to
higher selling prices and increased demand 
lower corn prices as carryover stocks 
from the record harvest in 2004 were
supplemented by another good crop in
2005 led to reduced net corn costs
manufacturing expenses increased due 
to substantially higher costs of energy 
and ingredients
at almex our joint venture in mexico profits
continued to improve high fructose corn
syrup hfcs volumes increased due to
sales to nonsoft drink markets and demand
from customers granted exemption from the
tax on soft drinks containing hfcs starch
volumes were also higher
citric acid profits continued to benefit from
improved pricing and slightly higher volumes
however substantial raw material and
energy price increases limited the profit
improvement the performance of the uk
business has resulted in an asset impairment
of £9 million at 31 march 2006 
our joint venture facility to produce
aquasta™ astaxanthin a natural 
nutrient and pigment for farmraised fish
successfully scaled up to designed capacity
during the year selling prices were in line
with expectations but manufacturing costs
were impacted by higher energy and raw
material costs and the business reported 
a loss of £1 million for the year
integration of the recently acquired
continental custom ingredients food
ingredient business has progressed
smoothly with a contribution to 2006 
results in line with our expectations
construction of all major capital 
expansion projects remains on schedule
commissioning of the biopdo™ joint
venture plant in loudon tennessee 
is expected to commence in the middle 
of the 2006 calendar year startup losses 
of £3 million during the year were slightly
above the comparative period key value
added projects announced during 2005
relating to the sagamore plant in lafayette
indiana and the plant in loudon tennessee
are on target for commissioning in january
2007 and october 2007  respectively
financial review
food  industrial ingredients americas
year to year to
31 march 2006 31 march 2005
sales £1127m £1037m 9
profit before interest
1
£125m £96m 30
margin
1
111 93 18pts
1
before exceptional items and amortisation
before exceptional items and amortisation
contribution to group sales 
31
contribution to group profit before interest 
38
highlights
■ profits increased by 30 to £125 million
■ strong performance from value added
and sweetener businesses 
■ construction of all major capital
expansion projects on schedule
■ acquisition of continental custom
ingredients inc food ingredient
business in january 2006 28 tate  lyle annual report 2006
profits in our food  industrial ingredients
europe business increased slightly by 5
from £44 million to £46 million mainly due 
to lower net raw material costs
sales volumes grew modestly and 
product mix improved due partly to recent 
investments in value added products selling
prices for much of the year were lower 
following the 2005 calendar year pricing
round there was some recovery in prices in
the 2006 pricing round although this will be
insufficient to recover higher energy prices
commodity sweetener prices were also
impacted by a significant drop in european
sugar prices during the second half of the
year in anticipation of the new sugar regime
regulations volumes were also impacted by
a temporary reduction to isoglucose quotas
during the year
both corn and wheat costs were lower as
the record european cereal harvest in 2004
was followed by another favourable crop in
2005 high production and high stocks 
carried forward from the previous year kept
the market at close to intervention price 
levels byproduct prices fell in line with 
cereal prices as both compete in the animal 
feed markets
energy costs were higher than in previous
years despite the effect of a combination 
of forward cover and efficiency savings for
much of the year the situation in the uk
gas market is of particular concern some
credit was obtained from the sale of carbon
dioxide emission rights there was a small
reduction in other manufacturing costs
the eaststarch joint ventures in central 
and eastern europe showed further 
improvement mainly due to lower net raw
material costs and volume growth this was
partially offset by a lower quota allocation 
for isoglucoseglucose in turkey following 
a reallocation by the sugar board 
the results for the division include a small
contribution in line with expectations 
from the acquisition of cesalpinia foods
which was completed at the end of
december 2005
the new sugar regime will come into effect
in july 2006 and will have an immediate 
and progressive adverse impact on the 
business over the fouryear transition period
this resulted in a £263 million impairment
charge to the asset base before the effect
of the impairment on the depreciation
charge trading profits in the year ending 
31 march 2007 are expected to be 
significantly lower particularly in the second
halfyear than in the year ended 31 march
2006 it is anticipated that the impact will 
be more than offset by the reduction of
approximately £25 million to the annual
depreciation charge due to the impairment
operating and financial review continued
financial review
food  industrial ingredients europe
year to year to
31 march 2006 31 march 2005
sales £719m £761m –6
profit before interest
1
£46m £44m 5
margin
1
64 58 06pts
1
before exceptional items and amortisation
before exceptional items and amortisation
contribution to group sales 
19
contribution to group profit before interest 
14
highlights
■ profits increased by 5 mainly due 
to lower net raw materials costs
■ £263 million impairment charge to the
asset base due to new sugar regime
■ acquisition of cesalpinia foods
completed in december 2005
■ trading profits in 2007 expected to be
significantly lower than in 2006 before
reduction in depreciation charge tate  lyle annual report 2006   29
our splenda
®
sucralose ingredient
business enjoyed another year of strong
growth with sales up 23 to £142 million
and profits of £68 million in the year to 
31 march 2006 2005 – £46 million prior
year profits were adversely impacted by 
£4 million due to an ifrs stock adjustment
profits for the year ended 31 march 2006
included £5 million of startup costs mainly
related to the new plant in singapore 2005
– transitional costs of £3 million exchange
rate translation increased profits by £2 million
demand for splenda
®
sucralose
continued to exceed supply despite a
gradual increase in capacity at our alabama
plant as the first phase of the expansion
project was completed by the yearend
sales were actively managed throughout 
the period by close collaboration with our
existing global customer base in spite of 
this restricted supply situation our ingredient
customers launched a number of new
products in both the food and beverage
categories many of these products featured
the ‘sweetened with splenda
®
’ brand
logo on their packaging and in the year to
31 march 2006 we approved over 750 new
packaging items displaying the splenda
®
logo in europe we continued to grow our
uk ingredient business and witnessed the
first product launches in france containing
splenda
®
sucralose january 2006 also
saw the launch of a reformulated coke light
in norway and sweden sweetened with
splenda
®
sucralose
the first phase of the expansion project at
our alabama facility was commissioned in
the first three months of calendar year 2006 
the second phase has been completed and
commissioning has commenced these two
expansions will result in a doubling of the
mcintosh capacity compared with the
capacity when the plant was acquired in
april 2004
construction of a second sucralose
manufacturing plant in singapore remains 
on schedule the administration building 
and the final product finishing and 
packaging areas are complete and will be
commissioned in 2006 in preparation for 
the main plant startup in january 2007 
demand for splenda
®
sucralose is
expected to remain strong during calendar
year 2006 as we continue to consolidate 
our position in north america together 
with further expansion of our ingredient
businesses in europe latin america 
and the far east 
financial review
sucralose
year to year to
31 march 2006 31 march 2005
sales £142m £115m 23
profit before interest
1
£68m £46m 48
margin
1
479 400 79pts
1
before exceptional items and amortisation
before exceptional items and amortisation
contribution to group sales 
4
contribution to group profit before interest 
21
highlights
■ sales grew strongly up 23 to 
£142 million
■ demand for splenda
®
sucralose
continued to exceed supply
■ expansion projects in alabama and
new singapore facility on schedule
■ demand for splenda
®
sucralose is
expected to remain strong during
calendar year 2006 30 tate  lyle annual report 2006
profits increased by 35 from £20 million 
to £27 million exchange rate translation
increased profits by £2 million
profits from tate  lyle canada were above
the level of the comparative period due to 
a marktomarket gain on raw sugar stocks
of £7 million 2005 – £2 million following 
a significant increase in the world raw sugar
price energy costs were above the prior
year due to higher natural gas prices 
our blending and packaging operation 
in niagara performed above the level of 
the prior year due to manufacturing cost 
savings and improvements in supply chain
management the antidumping and
countervailing duties which provide
protection to the canadian domestic sugar
industry were renewed for a period of five
years in november 2005
the sugar cane businesses had a mixed
year occidente our mexican joint venture
business reported lower profits as domestic
competition from cereal sweeteners reduced
local demand for sugar increasing the
volume of lower margin exports 
in vietnam nghe an tate  lyle’s profits
were marginally higher despite increased
input costs and a drought that caused a
reduction in sugar output to half of capacity
the buoyant world and regional markets
combined with vietnam becoming a sugar
importer led to firm prices further progress
was made in developing the ‘melli’ brand
the factory expansion was completed and
capacity is now 50 higher than when the
factory opened in 1998
operating and financial review continued
financial review
sugars americas  asia
year to year to
31 march 2006 31 march 2005
sales £273m £237m 15
profit before interest
1
£27m £20m 35
margin
1
99 84 15pts
1
before exceptional items and amortisation
before exceptional items and amortisation
contribution to group sales 
7
contribution to group profit before interest 
8
highlights
■ tate  lyle canada’s profits above
previous year due to a marktomarket
gain on raw sugar stocks of £7 million
■ profits lower at occidente our mexican
joint venture due to domestic
competition from cereal sweeteners
■ profits at nghe an tate  lyle in
vietnam were marginally higher tate  lyle annual report 2006   31
sugars europe had a mixed year with 
a difficult year in the refining businesses
partially offset by a strong performance 
in the sugar trading activity overall profits
declined by 14 from £72 million to 
£62 million 
the uk and portuguese refining businesses
reported profits significantly lower than in the
comparative period the businesses suffered
from fierce price competition driven both by
continuing oversupply following accession 
of eastern european countries to the eu 
and general uncertainties in anticipation of
the eu sugar regime changes eu sugar
regime reform is covered in detail in the 
chief executive’s review the excess of
sugar in the eu also resulted in increased
export licence costs which were £7 million
higher than in the prior year the current cost
of licences is below €40 per tonne of sugar
from peaks in excess of €100 per tonne
profits were also impacted by record natural
gas prices in the uk and high gas prices in
the eu which increased energy costs by 
£6 million the impact was mitigated
somewhat by a continued reduction in
manufacturing costs
lyle’s golden syrup spreadable was
successfully launched during the year
building on the strong lyle’s golden syrup
heritage and giving the tate  lyle brand 
a greater presence in the retail environment
packaging of the tate  lyle retail sugar
product range was refreshed during the year
giving customers greater product and usage
differentiation light cane launched in 2005
continues to perform well
sugar trading profits were £13 million higher
than the previous year capitalising on the
volatility of sugar prices on the world market
this is a result of the continued growth in
worldwide consumption of sugar at a time
when brazil has been diverting sugar cane
production to ethanol because of high oil
prices together with the planned reduction
in eu white sugar exports volumes traded
were higher and profits strengthened
particularly from the brazilian market due 
to the high world prices
molasses improved its performance over 
the prior year mainly through increased
profitability of its uk storage business
molasses prices have moved in line with
those of sugar and this has kept demand
and trading margins in europe and asia at
similar levels to the prior year
eastern sugar our european beet sugar 
joint venture operation in hungary slovakia
and the czech republic continued to see
benefits from accession to the eu although
changes to the eu sugar regime are likely 
to result in lower profits in the next few
years significant focus on organisation and
costs together with a very successful beet
campaign saw the group make good
progress versus the comparative period
financial review
sugars europe
year to year to
31 march 2006 31 march 2005
sales £1459m £1189m 23
profit before interest
1
£62m £72m –14
margin
1
42 61 –19pts
1
before exceptional items and amortisation
before exceptional items and amortisation
contribution to group sales 
39
contribution to group profit before interest 
19
highlights
■ uk and portuguese refining businesses
reported profits significantly lower than
previous year
■ fierce price competition driven by
continuing oversupply in the market
and uncertainties over eu sugar 
regime changes
■ strong performance from sugar trading
capitalising on volatility of sugar prices
on the world market 32 tate  lyle annual report 2006
financial review
continued
net finance expense
the net finance expense was £33 million
compared with £24 million in the year to 
31 march 2005 due principally to higher net
debt to fund both investments in capital and
acquisitions during the year this includes 
a net charge of £3 million 2005 – £3 million
relating to retirement benefits
the interest rate in the year calculated as net
finance expense divided by average net debt
was 52 2005 – 46 interest cover
based on profit before interest exceptional
items and amortisation was 99 times 
2005 – 116 times 
taxation
the group taxation charge was £69 million
2005 – £55 million the effective rate of 
tax on profit before exceptional items and
amortisation was 302 2005 – 284
the increase was mainly due to a higher
proportion of profits from the us
exacerbated by a small charge relating 
to prior years
dividend
the board is recommending a final dividend
of 141p as an ordinary dividend to be paid
on 27 july 2006 to shareholders on the
register on 30 june 2006 this represents an
increase in the total dividend for the year of
06p per share an interim dividend of 59p
2005 – 57p was paid on 10 january 2006
earnings before exceptional items and
amortisation covered the proposed total
dividend 21 times
retirement benefits
under ias19 the income statement contains
two main elements a service charge to
operating profit representing the annual
ongoing cost of providing benefits to active
members and a net finance cost or credit
representing the difference between return
on the assets in the funds and interest on
servicing future liabilities calculated using 
a corporate bond yield
the charge to operating profit before
exceptional items for retirement benefits in
the year to 31 march 2006 was £20 million
2005 – £21 million an exceptional credit 
of £24 million resulted from a reduction in
the group’s us healthcare liabilities following
changes to the us government’s federal
healthcare provision 2005 – £nil million
under ias19 the net pension deficit
decreased by £62 million to £77 million 
and the us healthcare provision decreased
by £10 million to £95 million 
contributions to the group’s pension funds
both regular and supplementary totalled 
£40 million 2005 – £34 million
cash flow and balance sheet
cash flow and debt
operating cash flow before working capital
totalled £461 million compared with 
£355 million in the previous year there 
was a working capital outflow of £211 million 
2005 – £38 million outflow this was
principally caused by the impact of higher
world sugar prices on the group’s sugar
trading activities a significant part of 
this outflow is expected to reverse in the
year ending 31 march 2007 in addition
supplementary payments were made to 
the group’s pension funds of £17 million 
and payments of £12 million were made
against provisions net interest paid totalled 
£27 million net taxation paid was 
£98 million 2005 – £84 million
capital expenditure of £273 million was
more than double depreciation of 
£125 million and we expect similar
expenditure for the year to 31 march 2007
free cash outflow representing cash
generated from operations after interest
taxation and capital expenditure totalled
£148 million 2005 – inflow £71 million
equity dividends were £93 million 
2005 – £89 million in total a net 
£130 million 2005 – £111 million was 
paid to providers of finance as dividends 
and interest
investment expenditure was £71 million
primarily reflecting the acquisitions of
cesalpinia foods in december 2005 and
continental custom ingredients inc in
january 2006 proceeds from the sale 
of property plant and equipment totalled 
£4 million 2005 – £4 million
a net inflow of £16 million was received
relating to employees exercising share
options during the year exchange translation
increased net debt by £31 million
the group’s net debt increased from £471
million to £858 million the adoption of ifrs
increased opening net debt of £451 million
at 31 march 2005 as previously reported
under uk gaap  by £20 million due to the
proportional consolidation of joint ventures
an additional increase of £58 million took
place on 1 april 2005 following the adoption
of ias39 
the ratio of net debt to earnings before
exceptional items interest tax depreciation
and total amortisation ebitda increased
from 12 times to 19 times during the year
net debt peaked at £858 million in march
2006 august 2004 during the year ended
31 march 2005 – £596 million the average
net debt was £638 million an increase of
£120 million from £518 million in the 
prior year
funding and liquidity management
the group funds its operations through 
a mixture of retained earnings and borrowing
facilities including capital markets and 
bank borrowings
in order to ensure maximum flexibility in
meeting changing business needs the
group seeks to maintain access to a wide
range of funding sources during the year
ended 31 march 2006 our food  industrial
ingredients americas business arranged a
us100 million receivables securitisation
programme of which us89 million was
drawn down at 31 march 2006 and 
tate  lyle european finance sarl arranged
and drew down a €50 million fiveyear term
loan capital market borrowings include the
€300 million 575 bond maturing in
october 2006 the €150 million floating
rate note maturing in 2007 the £200 million
650 bond maturing in 2012 and the
us500 million 500 144a bond maturing
in 2014 at 31 march 2006 the group’s 
long term credit ratings from moody’s 
and standard  poor’s were baa2 and 
bbb respectively
the group ensures that it has sufficient
undrawn committed bank facilities to provide
liquidity backup for its us commercial 
paper programme and other shortterm
money market borrowing for the foreseeable
future the group has committed bank
facilities of us615 million which mature 
in 2009 with a core of highly rated banks
these facilities are unsecured and contain
common financial covenants for tate  lyle
and its subsidiary companies that
subsidiaries’ preexceptional and
amortisation interest cover ratio should 
not be less than 25 times and the multiple
of net debt to ebitda as defined in our
financial covenants should not be greater
than 40 times the internal targets for these
items are a minimum of 50 times and a
maximum of 25 times respectively the
group monitors compliance against all its
financial obligations and it is group policy 
to manage the consolidated balance sheet
so as to operate well within covenanted
operating and financial review continued tate  lyle annual report 2006   33
restrictions at all times the majority of the
group’s borrowings are raised through the
group treasury company tate  lyle
international finance plc and are then 
onlent to the business units on an arms
length basis 
the group manages its exposure to liquidity
risk by ensuring a diversity of funding
sources and debt maturities group policy 
is to ensure that after subtracting the total 
of undrawn committed facilities no more
than 30 of gross debt matures within 
12 months and at least 50 has a maturity
of more than two and a half years at the
end of the year after subtracting total
undrawn committed facilities there was 10
of debt maturing within 12 months and 90
of debt had a maturity of two and a half
years or more 2005 – 0 and 98 the
average maturity of the group’s gross debt
was 48 years 2005 – 58 years 
at the yearend the group held cash 
and cash equivalents of £158 million 
2005 – £384 million and had undrawn
committed facilities of £354 million 
2005 – £327 million these resources are
maintained to provide liquidity backup and
to meet the projected maximum cash
outflow from debt repayment capital
expenditure and seasonal working capital
needs foreseen for at least a year into the
future at any one time
funding not treated as debt
in respect of all financing transactions the
group seeks to optimise its financing costs
where it is economically beneficial operating
leases are undertaken in preference to
purchasing assets leases of property plant
and equipment where the lessor assumes
substantially all the risks and rewards of
ownership are treated as operating leases
with annual rentals charged to the income
statement over the term of the lease
commitments under operating leases to pay
rentals in future years totalled £229 million
2005 – £212 million and related primarily 
to railcar leases in the us
financial risk controls
management of financial risk
the main financial risks faced by the group
are liquidity risk interest rate risk currency
risk and certain commodity price risks 
tate  lyle also faces risks which are non
financial or nonquantifiable for example
country and credit risk the board of 
tate  lyle plc regularly reviews these risks
and approves written policies covering the
use of financial instruments to manage these
risks and sets overall risk limits 
all the group’s material financial instruments
are categorised as being held either for
trading or risk management financial
instruments held for trading within the 
group are severely limited confined only 
to tightly controlled areas within the sugar
and corn pricing operations and reinsurance
activities the derivative financial instruments
approved by the board to manage financial
risks include swaps both interest rate and
currency swaptions caps forward rate
agreements financial and commodity
forward contracts and options and
commodity futures
control and direction of treasury
tate  lyle’s group treasury function
operates within a framework of clearly
defined board approved policies and
procedures setting out permissible funding
and hedging instruments exposure limits
and a system of authorities for the approval
of transactions most of the group’s
financing interest rate and foreign 
exchange risks and other treasury activities
are managed through the group treasury
company tate  lyle international finance
plc whose operations are controlled by 
its board the treasury company is chaired 
by the group finance director and has 
other board members independent of the
treasury function 
group interest rate and currency 
exposures are concentrated either in 
the treasury company or in appropriate
holding companies through marketrelated
transactions with group subsidiaries these
acquired positions are managed by the
treasury company within its authorised limits 
interest rate risk
the exposure to fluctuating interest rates is
managed by fixing or capping portions of
debt using interest rate derivatives to achieve
a target level of fixedfloating rate net debt
which aims to optimise net finance expense
and reduce volatility in reported earnings
the group’s policy is that between 30 
and 75 of group net debt excluding the
group’s share of joint venture net debt is
fixed or capped excluding outofthemoney
caps for more than one year and that no
interest rate fixings are undertaken for more
than 12 years at 31 march 2006 the longest
term of any fixed rate debt held by the
group was until november 2014 the
proportion of net debt excluding the group’s
share of joint venture net debt which was
fixed or capped for more than one year was
35 2005 – 85 excluding £147 million
2005 – £145 million of outofthemoney
interest rate options capping euro rates at
483 2005 – 483 
if the interest rates applicable to the group’s
floating rate debt rise from the levels at the
end of march 2006 by an average of 1
over the year to 31 march 2007 this would
reduce group profit before tax by
approximately £5 million
management of foreign exchange risk
the group has transactional foreign currency
exposures arising from sales and purchases
by subsidiaries in currencies other than their
functional currencies the group’s foreign
currency exposure management policy
requires subsidiaries to hedge transactional
currency exposures against their functional
currency once they are probable mainly
through the use of forward foreign 
exchange contracts 
the group’s accounting policy is to translate
profits of overseas companies using average
exchange rates it is the group’s policy 
not to hedge exposures arising from 
profit translation 
the group has significant investment in
overseas operations particularly in the
americas and europe movements in
exchange rates between balance sheet
dates can affect the sterling value of the
group’s consolidated balance sheet 
the currency profile of net debt is managed
to mitigate the effect of these translational
exposures arising on the group’s net
investment in overseas operations this is
achieved by borrowing in currencies where
practicable and cost effective which provide
a match for the group’s foreign currency
assets and which can be serviced from
foreign currency cash flows given the
current profile of the group’s net operating
assets and operating cash flows the group
aims to maintain a target currency profile 
of net debt excluding the group’s share 
of joint venture net debt such that us and
canadian dollars combined should exceed
40 euro should exceed 25 sterling
should not represent more than 25 and
other currencies should not exceed 10 
at the yearend net debt excluding the
group’s share of joint venture net debt 
was held in the following currencies net
borrowings of us and canadian dollars 
72 2005 – 75 euro 37 2005 – 46
and other currencies 0 2005 – 0 with
sterling deposits of 9 2005 – 21 
the weighted average exchange rate used
to translate us dollar profits was us179
2005 – us185 compared with the year
end rate of us174 2005 – us188  34 tate  lyle annual report 2006
the only material risks from economic
foreign currency exposures are to the 
uk sugar refining business from sterling
appreciation against the euro
credit risk
the group controls credit risk by entering
into financial instruments only with highly
creditrated authorised counterparties which
are reviewed and approved regularly by the
board of tate  lyle plc counterparty
positions are monitored on a regular basis
price risk
derivatives are used to hedge movements 
in the future prices of commodities in those
domestic and international markets where
the group buys and sells sugar corn and
wheat commodity futures and options are
used to hedge inventories and the costs of
raw materials for unpriced and prospective
contracts not covered by forward product
sales the options and futures hedging
contracts generally mature within one year
and all are with organised exchanges
use and fair value of financial
instruments
in the normal course of business the group
uses derivative financial instruments and
nonderivative financial instruments
the fair value of group net borrowings at
yearend was £869 million against a book
value of £858 million 2005 – fair value 
£503 million book value £471 million
derivative financial instruments used to
manage the interest rate and currency of
borrowings had a fair value of £12 million
asset 2005 – £2 million liability the main
types of instrument used are interest rate
swaps interest rate options caps or floors
and crosscurrency interest rate swaps
the fair value of other derivative financial
instruments hedging future currency and
commodity transactions was £3 million
liability 2005 – £nil million in currency
exposure management the instruments used
are spot and forward purchases and sales 
and options
the fair value of derivative financial
instruments held for trading was £71 million
asset 2005 – £1 million liability arising in 
the commodity trading and reinsurance
operations the net loss included in operating
profit from trading financial instruments was
£7 million 2005 – £3 million gain
fair value estimation
the fair value of derivative financial
instruments is based on the market price 
of comparable instruments at the balance
sheet date if they are publicly traded the fair
value of the forward currency contracts has
been determined based on market forward
exchange rates at the balance sheet date
the fair values of shortterm deposits
receivables payables loans and overdrafts
with a maturity of less than one year are
assumed to approximate their book values
the fair values of bonds bank and other
loans including finance lease liabilities due 
in more than one year are estimated by
discounting the future contractual cash flows
at the current market interest rate available
to the group for similar financial instruments
adjusted for the fair valuation effects of
currency and interest rate risk exposures
where those instruments form part of a
related hedging relationship agreements
financial and commodity forward contracts
and options and commodity futures
going concern
after making enquiries the directors have 
a reasonable expectation that the company
and the group have adequate resources 
to continue in operational existence for the
foreseeable future for this reason they
continue to adopt the going concern 
basis in preparing the accounts
operating and financial review continued safety
tate  lyle has no higher priority than safety
which we believe is fundamental to running 
a successful business every year we
strengthen our commitment to ensure safe
and healthy conditions for our employees
contractors and visitors by reporting
recognising and rewarding safety
performance we ensure that all our
operations focus on continuous
improvement
employee safety
calendar year 2005 results
for the third consecutive year safety
performance across tate  lyle improved 
in all categories reflecting our commitment
to providing a safe workplace for all our
employees compared with the 2004
calendar year results
■ group safety index improved by 394
■ recordable injury rate injury requiring
treatment beyond first aid improved 
by 129
■ losttime accident rate recordable 
accidents sufficiently severe to result 
in lost workdays or to restrict the
employee’s ability to perform hisher 
job counted from the first day of
incapacitation improved by 226 and
■ severity rate number of workdays lost
due to injuries improved by 457
rates are based on 200000 employee
hours worked
the group safety index compares safety
performance across tate  lyle this is a
weighted average of injuries sustained in 
the workplace with more severe incidents
having greater impact a decrease in the
index reflects improved performance our
target is zero for every tate  lyle operation
benchmarking results
the us and europe compile safety statistics
differently and therefore it is difficult to
compare results however we can compare
the performance of each of our divisions 
with results from the us bureau of labor
statistics again this year our divisions are
outperforming the average reported standard
for their peers in their respective sectors and
in the us private sector as a whole 
managing safety
maintaining a consistently safe and healthy
workplace for our people requires effective
proactive management constantly
improving our safety results requires
■ changing behaviour by encouraging 
a safety culture at all of our locations
■ auditing safety performance
■ rewarding improved safety performance
with local safety awards divisional ‘most
improved plant’ and groupwide ‘safety
first’ awards
■ sharing information and best practice
amongst all our locations
■ improving communication on safety
issues throughout the group and
■ the active involvement of senior
executives in auditing and promoting
safety
corporate social responsibility
for tate  lyle corporate social responsibility equates to applying our four core values 
– safety integrity knowledge and innovation – to the way we run our business this 
means continuous progress in achieving the highest standards of safety considering 
the environmental impact of every aspect of what we do and treating our employees
suppliers and the communities in which we work as longterm partners
putting these concerns at the centre of our business requires proactive management 
at the highest levels within the company the board reviews tate  lyle’s policies and
performance annually and the chief executive is the board member accountable for all
aspects of corporate social responsibility
this report covers our performance in calendar year 2005 sets out plans for the future
and explains how we manage corporate social responsibility to the benefit of both
tate  lyle and our partners
tate  lyle annual report 2006   35
the smaller the index the better the performance
375
2001
407
2002
351
2003
284
2004
172
2005
group safety index
a us food manufacturing
b us grain milling
c us corn refiners
d tate  lyle food  industrial ingredients americas
e tate  lyle food  industrial ingredients europe
f us sugar industry
g tate  lyle sugars americas
h tate  lyle sugars europe
number of injuries per 200000 employee hours requiring
more than first aid
820 560 580 126
d
208
h
413
g
1220 072
e
benchmarking safety recordable injury rate
us industry statistics as reported by
us bureau of labor statistics
us industry
480
ab c f
a us food manufacturing
b us grain milling
c us corn refiners
d tate  lyle food  industrial ingredients americas
e tate  lyle food  industrial ingredients europe
f us sugar industry
g tate  lyle sugars americas
h tate  lyle sugars europe
rate of recordable accidents per 200000 employee hours 
sufficiently serious to result in lost workdays or restricted 
work activities
190 150 040 007
d
121
h
028
g
300 051
e
benchmarking safety losttime accident rate
us industry statistics as reported by
us bureau of labor statistics
us industry
140
ab c f 36 tate  lyle annual report 2006
operating and financial review continued
working together is very important for
improving standards but ultimately we will
dismiss contractor organisations if they do
not demonstrate the same commitment to
improving safety as does tate  lyle
outlook
2005 has been a year of transition in terms
of developing programmes to improve
contractor safety our focus in 2006 will be
to bring contractor safety standards closer
to the high standards of employee safety 
we are achieving at tate  lyle at the 
same time while we are pleased with our
continuing progress in employee safety 
we recognise that there is always room for
improvement by continuing our drive for a
safe workplace as highlighted in this report
we are determined to improve our record 
still further in future years
132
a
200
b
a tate  lyle
b us industry
rate of recordable accidents per 200000 employee hours 
sufficiently serious to result in lost workdays or restricted 
work activities
benchmarking contractor safety 
losttime accident rate
us industry statistics as reported by
us bureau of labor statistics
218
a
610
b
benchmarking contractor safety 
recordable injury rate
us industry statistics as reported by
us bureau of labor statistics
a tate  lyle
b us industry
number of injuries per 200000 employee hours requiring
more than first aid
achievements and awards
most of tate  lyle’s locations equalled or
improved their 2004 performance including
29 that reported no losttime accidents and
11 that reported no recordable injuries for
the year an important part of managing
safety is our annual ‘world class safety
excellence’ awards programme to qualify
for entry plants must
■ operate the entire year without losttime
■ have active employee participation in
their safety programme 
■ have an active auditing programme and
■ demonstrate adherence to tate  lyle’s
standards during executive management
and network audits 
calendar year 2005 winners were
■ large plant over 250000 employee
hours per year
– europe lisbon portugal
– americas mcintosh usa
■ small plant less than 250000 employee
hours per year
– europe plaistow uk
– americas houlton usa
■ most improved safety performance
– europe nisasta turkey
– americas sagamore usa
tate  lyle has also received external
recognition for safety the state of alabama
honoured our mcintosh usa plant with
their safety achievement award for
outstanding safety performance in 2005
contractor safety
calendar year 2005 results
2005 is the second year we have collected
contractor safety statistics so we can now
begin to assess progress compared with
the 2004 calendar year results
■ contractor safety index improved 
by 37
■ recordable injury rate improved 
by 384
■ losttime accident rate improved 
by 19 and
■ severity rate increased by 1
benchmarking results
contractor safety continues to compare well
with the us bureau of labor statistics 2004
the most recent data available the bureau
reports the overall recordable injury rate per
200000 employee hours for us contractors
to be 610 against 218 at tate  lyle and
the overall losttime accident rate to be
200 against our 132
managing safety
while there have been improvements in
some aspects of contractor safety this 
year the standards are not yet on a par 
with those of tate  lyle employees the
death of two contractors in october 2005 
in razgrad bulgaria is a reminder that we
can never let up on our drive for safety for 
all those who work at our sites improving
contractor safety is more of a challenge
because tate  lyle does not directly
supervise the employees of contractors
however many of our sites are beginning to
work more closely with contractors on safety
issues see ‘commercial partnerssuppliers’
on page 38 for more details on how one 
of our divisions is working to improve
contractor safety and we hope to see
improvements in contractor safety
performance in future years as a result
a tate  lyle food  industrial ingredients americas
b tate  lyle food  industrial ingredients europe
c tate  lyle sucralose
d tate  lyle sugars americas
the smaller the index the better the performance
e tate  lyle sugars europe
f citric acid
g nghe an tate  lyle sugar company vietnam
103
a
2004
125
a
2005
820
b
2004
148
b
2005
000
c
2004
461
c
2005
857
d
2004
2142
d
2005
4221
e
2004
532
e
2005
529
f
2004
286
f
2005
165
g
2004
205
g
2005
contractor safety index tate  lyle annual report 2006  37
environment
tate  lyle’s environmental policy is for 
all our operations to be conducted in light 
of our responsibilities towards the natural
environment in which we live and work and
to comply with relevant laws regulations and
consents which may vary from location to
location the board reviews environmental
performance and the policy annually
tate  lyle continues to subscribe to the
principles of the international chamber 
of commerce’s business charter for
sustainable development in accordance
with group policy all locations fully integrate
environmental management into their
operational systems and procedures
environmental impacts are many and varied
when reviewing our environmental footprint
it has always been tate  lyle’s policy to
focus particularly on those impacts which
have most effect on the environment and
over which we have direct control our three
most significant environmental impacts are
in order of magnitude energy use water use
and nonhazardous solid waste production 
energy use is by far our most significant
impact and we therefore give it the highest
priority managing our impacts for a positive
result is good for the environment and also
brings economic benefits to tate  lyle
calendar year 2005 results
■ energy consumption reduced by 36
■ water consumption increased by 13
■ nonhazardous waste production
increased by 77
we focus our measurement and our
improvement efforts on the areas that have
most environmental and financial impact 
for example on the 2005 energy bill every
1 improvement in our energy index offers 
a cost saving estimated at £19 million 
an equivalent improvement in the water index
offers a saving of some £145000 while 
a 1 improvement in the nonhazardous
waste index saves around £30000
we are therefore pleased to report that
energy consumption our most significant
impact both environmentally and
economically showed a good reduction on a
per unit basis of 36 beating our group
target of 30 per annum nonhazardous
waste production has increased this year
due to major construction projects under
way in a number of locations for example
our new plant in singapore and expansions
at two of our plants in the us once these
projects are complete we expect to return
to decreasing the amount of nonhazardous
waste we produce
violation abatement and 
compliance orders
the vast majority of our operations
completed 2005 without incident where
tate  lyle inadvertently contravened
regulations incidents were minor and we
reacted immediately to correct the problems
managing environmental impacts
managing environmental impacts is very
important at tate  lyle environmental 
risks are included in the groupwide risk
management process and are reviewed 
and assessed regularly for more
information see the sections on risk 
factors on pages 24 and 25 and 
corporate governance on page 52
measuring data
to manage our environmental footprint to the
benefit of the environment and the company
we collect detailed data and report results
from each operating unit quarterly using 
a comprehensive system that has been
validated by our internal audit department
we then normalise the data to reflect the
amount of product manufactured this
protects the commercial sensitivities of the
data while allowing us to report publicly 
on our progress and make comparisons
between years the data is then aggregated
to create a single set of indices for the
group adjusted to take account of
acquisitions and disposals
training
employees receive regular training on
managing environmental impacts and
changes in legislation so that they are always
aware of the issues many operating units
have environmental management committees
that meet regularly to discuss progress
customers and suppliers
we work closely with our customers to
ensure our systems meet their requirements
we brief all contractors on key environmental
issues to make sure that we are managing
our environmental impact effectively and 
in the uk we have begun working with
contractors to help them improve business
efficiency and decrease their impact 
on the environment see ‘commercial
partnerssuppliers’ on page 38 for 
more details
the smaller the index the better the performance
112
2001
103
2002
107
2003
117
2004
126
2005
group nonhazardous solid waste index
the smaller the index the better the performance
089
2001
083
2002
081
2003
079
2004
080
2005
group water index
the smaller the index the better the performance
089
2001
085
2002
083
2003
084
2004
081
2005
group energy index
outlook
the production of value added products 
for our customers consumes considerable
energy our ongoing challenge is to reduce
environmental impacts energy in particular
while growing the business and developing
these products we will continue to manage
our environmental footprint as efficiently 
as possible ensuring that we build
environmental concerns into our processes
as we develop new products 38 tate  lyle annual report 2006
operating and financial review continued
employee health and
wellbeing
at tate  lyle we aim to lead the way in
employee health programmes will differ
across the group according to local needs
but all are based on the principle that the
company has a role to play in helping
employees improve their health by providing
information and advice on all aspects of
health and wellbeing 
calendar year 2005 highlights
uk
tate  lyle’s uk occupational health
programme has been acknowledged as 
a model of excellence by the uk national
health service the department of health 
is using our programme which includes
health promotion activities an occupational
health clinic advice on healthy eating and
counselling services as an example of best
practice to launch the department’s new
initiative business communities of health 
our programme also won silver in the
employee health and wellbeing initiatives
category at the uk’s food and drink
federation community partnership awards
which recognise the uk food and drink
sector’s commitment to the community
europe
many of our mainland europe plants 
offer similar health programmes to the uk
programmes include companysponsored
fitness programmes health and wellbeing
awareness campaigns healthy menu
options in employee restaurants and annual
health and fitness checkups 
americas
throughout north america tate  lyle 
offers an outsourced counselling service 
the employee assistance programme 
to employees and their families many 
plants offer exercise facilities or company
sponsored fitness programmes in decatur
illinois for example tate  lyle has a healthy
lifestyles task force run by employee
volunteers which plans and implements a
variety of activities to promote health and
fitness such as an annual health fair 
flu vaccinations exercise programmes 
and regular presentations on a variety 
of healthrelated topics
outlook
while our occupational health programmes
will continue to be managed locally to meet
employees’ needs in 2006 we aim to share
ideas and best practice more widely across
tate  lyle
commercial
partnerssuppliers
longterm good relationships with our
partners and suppliers are very important 
at tate  lyle we have a consistent 
groupwide approach based on our 
code of conduct which covers purchasing
strategies at global regional and local levels
we pride ourselves on our supply chain
ethics and are committed to sharing 
best practice and improving standards
amongst suppliers
calendar year 2005 highlights
auditing
managing supplier relationships for the
benefit of both parties requires regular
consistent auditing we continue to develop
our supplier audit system paying closer
attention to supply chain ethics while our
risk management programme focuses on
supply chain risks at a strategic level
raw materials suppliers
across the group we have longstanding 
and mutually beneficial relationships with 
our growers of sugar cane sugar beet
maize and wheat we apply rigorous
standards to our raw materials suppliers
and survey many of them on their ethical
commitment we work closely with them to
ensure compliance with our needs
implementing traceability and ensuring that
our customers’ requirements over issues
such as genetic modification are fully met 
in june 2005 we strengthened our
commitment to improving practices in 
the raw sugar supply chain by hosting 
the first meeting of ‘better sugar better
business’ a joint ifc international finance
corporationwwf worldwide fund 
for nature initiative on improving the
environmental and social impacts of cane
growing since that meeting the initiative
has formed a steering group of which 
tate  lyle is a member and the group 
is now drafting its terms of reference
in previous reports we have highlighted the
longterm relationship we have with suppliers
of raw sugar for our european union eu
refining business acting as a conduit for the
eu’s policy of providing advantageous prices
to these suppliers clearly the reduction in
prices agreed by the eu under the new
sugar regime will significantly reduce this
benefit to our suppliers the african
caribbean and pacific acp countries 
are currently in discussion with the eu
commission on a package of accompanying
measures to help them adapt to these new
circumstances this is a direct negotiation
between the countries themselves and the
commission however we have stressed
that these packages must be wholly
adequate correctly targeted and efficiently
delivered in a timely way 
information about the impact on tate  lyle
of changes to the eu sugar regime are
described in the chief executive’s review 
on page 11
safety and environment programmes
reflecting our commitment to sharing best
practice and improving standards amongst
suppliers sugars europe has begun to
involve commercial partners in both safety
and environment programmes 
safety
■ monthly safety meetings all contractors
are now invited to send a representative
to our monthly safety meetings with each
contractor organisation taking it in turn 
to act as host the host contractor gives
a presentation on how their organisation
manages safety and explains what they
can offer tate  lyle in terms of good
practice the meeting serves as a general
learning session for everyone sharing
best practice between contractor
organisations as well as with tate  lyle 
■ behavioural auditing tate  lyle has
introduced behavioural safety auditing 
for contractors using our own system
each contractor group now performs
three audits per month 
■ stop this year tate  lyle offered stop
safety training observation programme
to contractors for the first time one
contractor organisation will begin running
the programme as a pilot in 2006 and it
will then be rolled out to others who will
run it with tate  lyle facilitating
■ awards each month we have a
contractor award for safety in addition 
to our employee award we have also 
set up a contractors’ annual safety
league table to encourage them to
improve performance
■ contractor ‘passports’ tate  lyle has
signed up to the construction industry
training board’s ‘passport’ scheme
which has been introduced as a
requirement for contractors in certain
construction and manufacturing roles
under the scheme contractors complete
a training course on the fundamentals of
safety in construction and manufacturing
and receive a passport to certify that they 
can work at any site that requires one tate  lyle annual report 2006  39
this system is an efficient way of
ensuring that each individual contractor
has the necessary safety training to 
work on our sites and makes it easier 
for contractors to certify their suitability 
for a job 
environment
tate  lyle joined with uk organisation
envirowise to set up a programme to help
suppliers improve their business efficiency 
by minimising waste and maximising cost
savings a group of suppliers attended the
launch workshop at thames refinery and
are now benefiting from practical plans for
their businesses covering a range of
subjects from waste management and
minimisation and packaging optimisation 
to environmental management systems 
and environmentallydriven procurement
sustainable procurement
we are reviewing procurement to look 
at how tate  lyle can encompass
sustainability more fully in our strategies 
as part of that process we have signed 
up to the mayor of london’s green
procurement code an initiative to help
companies based in london to identify 
best practice in recycling waste and 
buying products manufactured from 
recycled materials 
managing suppliers tate  lyle’s
business code of conduct
tate  lyle’s business code of conduct
applies unconditionally to all parts of the
whollyowned group and we also aim to
apply the code in those operations in which
we have a 50 stake or more where we
have a minority stake we encourage our
partners to adopt the code in contracting
rounds with suppliers and when issuing
purchase orders we attach the code of
conduct and require them to notify us
immediately if they have any issues with it
every division within tate  lyle must
confirm twice a year that the code is being
communicated to suppliers and report any
contraventions suppliers who persistently
contravene the code may be faced with
termination of their contracts
outlook
in 2006 we aim to continue to improve
standards in our supply chain through
developing our work on supply chain 
ethics risk management and sustainable
procurement and by working increasingly
closely with suppliers to share best practice 
on a range of issues we will continue 
to develop our supplier audit programme 
to ensure consistently high standards across
the group 
communities
tate  lyle aims to play a positive role in all
the communities in which we operate over
the years we have developed a groupwide
community involvement policy that forms
one of the core components underpinning
our ethical behaviour our programme
involves building longterm relationships 
with local partners to deliver a shared
objective establishing strong safe and
healthy communities by investing time 
and resources into projects that directly
address local needs
our community partnerships are very well
supported by employees many of whom
take part in local community programmes
these benefit our employees by enhancing
their own local communities offering
significant personal development
opportunities and making tate  lyle a
company for which they are proud to work
calendar year 2005 highlights
charitable donations
our corporate donations committee
oversees community policy throughout the
world in order to improve internal standards
select projects that target local needs and
deliver the most positive impact and to
ensure that ultimately our community
involvement work reflects our broader
responsibilities as a company our guidelines
for funding and support are education –
50 environment – 25 health – 15
arts – 10
in the financial year to 31 march 2006 
tate  lyle’s total worldwide charitable
donations were £766000 our total 
global pro bono contribution in goods and 
services is estimated to have been £193000
up from £188000 in the previous year
we support many local organisations
involved in community activities all round 
the world listed here are the top three 
in each region in 2005
■ uk tate britain london bombings 
relief charitable fund community links
■ europe excluding uk razgrad disabled
children’s centre bulgaria telethon for
genetic disease research france union
of blind people slovakia
■ americas american red cross millikin
university community foundation of
decatur and
■ vietnam roadbuilding programme
housing support programme for local
communities ‘for the future’ support 
for schools programme
key achievements
tate  lyle employees around the world
make huge efforts to support their local
communities here we highlight just some 
of the great stories from each region
■ uk
– educational visits 850 students up
from 660 last year and 95 teachers
visited our locations during 38
curriculumbased visits
– citizenship week 23 schools up from
17 last year participated in a range 
of citizenship activities during this 
tate  lylesponsored event
– ideas factory at tate britain 180
newham primary school children
completed the sixmonth project that
uses original works of art to improve
language and literacy skills supported
by 15 employee volunteers
■ europe excluding uk
– bulgaria tate  lyle continued 
to support the development of a
rehabilitation centre in razgrad for
social integration of children needing
special care donating further funds 
for its expansion
– france tate  lyle sponsored the
local telethon a oneday event in
france devoted to raising money 
for research into genetic diseases
– slovakia tate  lyle donated money
to support local disabled people
including wheelchair purchase and 
and guide dog sponsorship
■ americas
– ‘project success’ tate  lyle
supported this innovative programme
in decatur and macon county that
helps children succeed at school
– university of illinois tate  lyle
supports a number of research
initiatives at the university of illinois
the state’s flagship university 
– city of loudon tate  lyle provided
funding for the ‘tate  lyle performing
arts center’ in loudon’s municipal
park the center hosts a variety of
musical and theatrical performances 40 tate  lyle annual report 2006
operating and financial review continued
■ vietnam
– support programmes for local
community schools
– rural housing project to improve living
standards in local communities
uk community survey results
again this year we sent out a questionnaire
with our uk community involvement report
responses from the questionnaire showed
that our performance continues at its
traditionally high level our willingness 
to support community partners was rated 
at 98 while some 58 of respondents
reported an improved capability to help 
their target cause with the same number
reporting an improvement in their facilities 
or environment
managing our impact
our aim is to ensure that our community
involvement policy ratified by the board 
is followed wherever we operate while 
we made progress in 2005 in developing
community activities in all our locations
there remain different levels of community
activity in our various geographical locations
reflecting the history of tate  lyle’s
involvement in the area
our global corporate donations committee
which oversees community policy will
continue to share best practice and improve
internal standards and reporting across 
tate  lyle to ensure that in future all parts
of the group develop mutually beneficial
longterm community partnerships
employee volunteering
the time and effort our employees spend 
on community involvement work is vital to
maintaining the longterm good relationships
we have developed with the communities in
which we operate volunteering brings skills
and experience from the workplace into the
community that corporate funding alone
cannot achieve of the organisations we
support several have been partners for 
over a decade and our employees join their
committees advocate their causes in the
wider community and provide mentoring 
and business skills 
volunteering also brings benefits to 
tate  lyle employees tell us that they
benefit hugely from community work which
helps them develop their skills and become
more rounded as individuals a strong
volunteer network is vital to the success of
our community involvement programme and
developing that network across tate  lyle 
is an important ongoing aim 
outlook
our aim for the coming year continues to 
be to integrate our community efforts around
the world into one global programme while
work continued in 2005 to share expertise
between locations where we have long
running successful partnerships with local
organisations with our newer operations
there is still work to be done to ensure that
wherever we operate tate  lyle makes 
a positive contribution and is a valued part 
of the local community
community spend by allocation 
for financial year 2006
excludes donation made to the london bombings relief 
charitable fund
education 49 
environment 19
health 23
arts 9
a improved capability to help target cause
b raised profile
c wider network of contactsvolunteers
d improved facilitiesenvironment
e improved staff motivation
67
a
2003
59
a
2004
58
a
2005
50
b
2003
59
b
2004
52
b
2005
29
c
2003
45
c
2004
39
c
2005
13
e
2003
32
e
2004
30
e
2005
54
d
2003
41
d
2004
58
d
2005
results of 2005 uk community involvement report survey 
how tate  lyleís support created additional value 
a efficiency of response
b willingness to support
c contribution to the community
95
a
2002
92
a
2003
95
a
2004
98
a
2005
95
b
2002
95
b
2003
100
b
2004
98
b
2005
95
c
2002
95
c
2003
97
c
2004
95
c
2005
results of 2005 uk community involvement report survey 
how tate  lyle’s community performance is rated  tate  lyle annual report 2006   41
we never embark on any activity with the
specific aim of winning an award however
we value the recognition by experts in the
field that such awards represent moreover
awards can help to support the reputation
of the business and offer an opportunity 
to highlight and celebrate success 
over the past year we have received 
a range of awards for our support for 
local communities
food and drink federation community
partnership awards 2006 uk
tate  lyle won two awards gold in the
‘community’ category for our education
support and silver in the ‘workplace
community incorporating healthy
workplace initiatives’ category for our
employee occupational health programme
employee rewards  benefits 
awards 2006 uk
tate  lyle was a finalist in the ‘most
effective health strategy’ category for our
employee health and wellbeing programme
newham education business
partnership uk
tate  lyle was awarded a certificate 
from the newham education business
partnership ‘in recognition of the
outstanding support given to the
partnership and the young people 
of newham’
awards
community prosperity award usa
the us communities of lafayette indiana
and loudon tennessee presented awards
to tate  lyle recognising corporate and
individual contributions to the areas the
loudon county economic development
agency presented tate  lyle with 
a ‘peak’ performance excellence
achievement and knowledge award and
the lafayettewest lafayette community
prosperity award was awarded to the
lafayette south and sagamore plants 
for their positive impact on the 
local community
purdue university award usa
tate  lyle received an award from
purdue university indiana for making 
a significant contribution to their 
agriculture and engineering programmes
company donations were used to establish
a food carbohydrate laboratory in the
department of food science in the college
of agriculture
henrique salgado award portugal
a team from lisbon portugal was placed
second out of 3000 companies in the
henrique salgado award competition
which recognises companies for their
strong emphasis on developing industrial
health and safety activities
iain ferguson
chief executive
simon gifford
group finance director
stanley musesengwa
chief operating officer
the operating and financial review was approved on 24 may 2006 on behalf of the board by 42 tate  lyle annual report 2006
01 sir david lees
chairman
joined the board and was appointed
chairman in october 1998 he joined gkn
plc in 1970 and became group finance
director in 1982 he was appointed group
managing director in 1987 and then
chairman and chief executive in 1988 
he retired as chief executive of gkn in
1996 but continued to serve as chairman
until his retirement in may 2004 from 1991
to 1998 he served as a nonexecutive
director of courtaulds plc the last two years
as chairman he also served as a non
executive director of the bank of england
from 1991 to 1999 he is currently joint
deputy chairman of brambles industries plc
and brambles industries limited deputy
chairman and senior nonexecutive director
of qinetiq group plc a director of royal
opera house covent garden limited 
a member of the panel on takeovers and
mergers and chairman of the governing
body of shrewsbury school he is a fellow
of the institute of chartered accountants 
in england and wales aged 69
02 iain ferguson cbe
chief executive
joined the group and was appointed 
chief executive in may 2003 previously 
he worked for unilever where he held 
a number of senior positions including
executive chairman of birds eye walls 
and senior vicepresident corporate
development he is a former commissioner
on the uk government’s policy commission
on the future of farming and food and also
a former president of the institute of grocery
distribution he is currently deputy president
of the food and drink federation and
honorary vicepresident of the british
nutrition foundation aged 50
03 richard delbridge
senior independent 
nonexecutive director
joined the board in september 2000 
and was appointed senior independent 
nonexecutive director in december 2003 
a chartered accountant he is a former
partner of arthur andersen  co and
managing director and general manager 
of jp morgan  co in the uk in 1989 
he was appointed director group finance 
at midland bank plc later becoming group
finance director hsbc holdings plc 
in 1996 he was appointed director and
group chief financial officer of national
westminster bank plc a position he held
until april 2000 he is also a nonexecutive
director of jp morgan cazenove holdings
fortis group and gallaher group plc 
aged 64
04 simon gifford
group finance director
joined the group in 1969 having qualified 
as a chartered accountant in that year 
he has held various senior financial and
general management roles including
managing director foreign investment
division from 1987 and company secretary
with responsibility for investor relations from
1993 he was appointed to his current
position and joined the tate  lyle board 
in january 1996 from january to april
2003 he served as acting chief executive
whilst a new chief executive was being
recruited he is a nonexecutive director 
of richard house limited aged 59
05 evert henkes
independent nonexecutive director
joined the board in december 2003 
he worked for the royal dutchshell group
of companies for 30 years during which
time he held a number of senior management
positions in europe and asia pacific
including president of shell’s billiton metals
business from 1992 to 1995 chemicals
coordinator director strategy and business
services of shell’s chemicals division from
1995 to 1997 and then chief executive 
of shell chemicals until his retirement in april
2003 he is also a nonexecutive director of
outokumpu oyj sembcorp industries ltd
and cnooc ltd china national offshore oil
company aged 62
06 stanley musesengwa
chief operating officer
joined the group in 1979 as a refinery
manager and subsequently performed 
a number of roles before becoming 
regional director tate  lyle africa in 1995
in december 1999 he was appointed 
chief executive of tate  lyle europe with
responsibility for the group’s european sugar
refining businesses and its global sugar and
molasses trading activities he was
appointed to the tate  lyle board in april
2003 and to his current position of chief
operating officer in may 2003 aged 53
board of directors
01 02 03 04 05 06 tate  lyle annual report 2006   43
07 kai nargolwala
independent nonexecutive director
joined the board in december 2004 
he is currently a group executive director 
of standard chartered plc where he is
responsible for growth and governance
across the asia pacific region including
south asia he also serves as a director of
the asia pacific region of visa international
previously he worked for bank of america
where he served as group executive vice
president head of asia wholesale banking
group he is a fellow of the institute of
chartered accountants in england and
wales aged 56
08 carole piwnica
nonexecutive director
joined the board in october 1996 
in august 2000 she was appointed 
as ‘nonexecutive vicechairman
governmental affairs’ for tate  lyle 
she qualified as a lawyer at the new york
and paris bars and has wide business
experience in agribusiness and food  drinks
companies appointed to the board of
amylum europe nv in 1991 she served 
as chairman from october 1996 to august
2000 she is a nonexecutive director of
aviva plc and is practising law in europe
and the usa specialising in private equity
and eu regulatory matters aged 48
09 stuart strathdee
corporate development director
joined the group in 1977 he has served 
in a variety of senior management positions
including group treasurer managing director
of united molasses managing director of
tate  lyle international and managing
director international division he was
appointed to the tate  lyle board in
november 1994 and to his current position
as corporate development director in 
july 2003 he is a nonexecutive director 
of james finlay limited aged 54
10 robert walker
independent nonexecutive director
joined the board in january 2006 he is
currently chairman of wh smith plc and 
a nonexecutive director of wolseley plc
signet group plc and williams lea group
limited he started his career at procter 
gamble and mckinsey  co then spent
over 20 years with pepsico international
culminating as a division president in may
1996 he joined the board of severn trent
plc as a nonexecutive director and then
served as group chief executive from
august 2000 until his retirement in february
2005 he is also an adviser to cinven 
aged 61
11 dr barry zoumas
independent nonexecutive director
joined the board in may 2005 he is
currently the alan r warehime professor 
of agribusiness and professor of food
science and nutrition at the pennsylvania
state university usa he is also president 
of the international life sciences institute
north american branch of which he is also
a director he worked for hershey foods
corporation for 27 years the last 16 as
corporate vicepresident science and
technology he has also previously served
as visiting scientist for the romebased
food and agriculture organization of the
united nations and as a principal adviser 
to us aid for agricultural development 
aged 63
12 robert gibber
company secretary
a solicitor he joined tate  lyle in 1990 
as a commercial lawyer he was appointed
general counsel in 1997 and then also
company secretary in 2001 aged 43
board committees
the specific responsibilities delegated to the
board committees are described on pages 50 
to 52
audit committee
richard delbridge chairman
evert henkes
kai nargolwala
robert walker
dr barry zoumas
chairman’s committee
sir david lees chairman
richard delbridge
iain ferguson
evert henkes
kai nargolwala
carole piwnica
robert walker
dr barry zoumas
nominations committee
sir david lees chairman
richard delbridge
iain ferguson
evert henkes
kai nargolwala
carole piwnica
robert walker
dr barry zoumas
remuneration committee
evert henkes chairman
richard delbridge
kai nargolwala
robert walker
dr barry zoumas
07 08 09 10 11 12 44 tate  lyle annual report 2006
group management committee
the group management committee is
chaired by iain ferguson chief executive
and oversees the development and
execution of the group’s strategy it also 
has overall responsibility for achieving
business results 
members
the current members of the group
management committee are listed on this
page their biographies are detailed on
pages 42 and 43 except for corry wille
whose biography is given opposite
senior management
iain ferguson
chief executive
stanley musesengwa
chief operating officer
simon gifford
group finance director
stuart strathdee
corporate development director
robert gibber
company secretary and general counsel
corry wille
group human resources director
01 corry wille
group human resources director
joined the group and was appointed 
group human resources director in april
2004 she began her career in 1984 with 
bp chemicals where she held a number 
of human resources positions in belgium
the uk and the us she joined whirlpool
europe in 1994 working initially as the
human resources director for the customer
services division in germany before moving
to the european headquarters in italy firstly
as the human resources director for
manufacturing and then as the vicepresident
human resources europe aged 45
the senior management team
operates through two executive
committees the group management
committee and the group
operational committee
01 tate  lyle annual report 2006   45
group operational committee
the group operational committee is
responsible for all aspects of the daytoday
operations and trading of the group the
committee drives for excellence in customer
service while ensuring the efficiency of 
our business
members
the group operational committee is 
chaired by stanley musesengwa chief
operating officer his biography can be
found on page 42 the other members 
of the group operational committee are
listed on this page together with those
senior executives who are standing
attendees at committee meetings
08 j patrick mohan
president support and efficiency
services
09 jan broekaert
human resources director europe
10 dr bob schanefelt
1
head of global research and
development
11 austin maguire
1
president sucralose
1
attend all committee meetings but are not
formal members of the committee
02 d lynn grider 
president food  industrial 
ingredients americas
03 ian bacon
chief executive sugars europe 
04 silvio allamandi 
president sugars americas
05 clive rutherford
chief executive food  industrial
ingredients europe
06 mark white
president global food ingredients group
07 loren luppes
group president manufacturing 
and technology
02
08 07 09 10 11
03 04 05 06 46 tate  lyle annual report 2006
principal activities of the group
the principal activities of tate  lyle plc
and its subsidiary and associated
undertakings the group are developing
manufacturing and marketing food and
industrial ingredients that have been made
from renewable resources
financial year
the accounting period under review 
is for the year ended 31 march 2006
comparative figures used in this report 
are for the year ended 31 march 2005
business review
the chairman’s statement on pages 6 
and 7 the chief executive’s review on
pages 8 to 11 and the operating and
financial review on pages 20 to 41 report
on the activities during the year post
balance sheet events and likely future
developments the information in these
reports which are required to fulfil the
requirements of the business review 
are incorporated in this directors’ report 
by reference
dividend
a final dividend of 141p per share is
recommended for the year to 31 march
2006 if approved it will be due and payable
on 27 july 2006 to shareholders on the
register on 30 june 2006 this dividend
amounts to £68 million and makes a total 
for the year of 200p per share compared 
with 194p per share for the year to 
31 march 2005
annual general meeting
the annual general meeting agm will be
held at the queen elizabeth ii centre broad
sanctuary westminster london sw1p 3ee
on wednesday 19 july 2006 at 1115 am
enclosed with this report is a letter from 
the chairman to shareholders attached 
as an appendix to the letter is the notice
convening the meeting which includes four
items of special business the letter includes
an explanation of all the resolutions to be
proposed at the agm
share capital
the company issued 2268237 ordinary
shares during the year all on the exercise 
of employee share options the total value 
of ordinary shares issued at the issue price
for cash was £7289315 information about
the company’s share capital and options
granted under the employee share schemes
is given on page 95
details of shares purchased by the 
tate  lyle employee benefit trust to satisfy
options granted under the group’s longterm
incentive plans are given in the directors’
remuneration report on page 64 
details of substantial interests in tate  lyle
as at 24 may 2006 are given on page 96
apart from these holdings the directors have
not been notified of any material interest 
of 3 or more or any nonmaterial interest 
of 10 or more of the issued voting capital
of the company 
the company was given authority at the
2005 agm to make market purchases 
of up to 48679468 of its own ordinary
shares this authority will expire at the 2006 
agm and approval will be sought from
shareholders at that meeting for a similar
authority to be given for a further year 
the company has not acquired any of 
its own shares during the year
directors
the current members of the board together
with biographical details of each director are
set out on pages 42 and 43 
dr barry zoumas was appointed as a 
nonexecutive director from 1 may 2005
robert walker was appointed as a non
executive director from 1 january 2006
allen yurko retired as a nonexecutive
director at the 2005 agm on 28 july 2005 
retirement and reelection of directors
in accordance with its articles of
association onethird or the nearest whole
number below onethird of the directors 
of tate  lyle plc are required to retire 
at each agm together with directors
appointed by the board since the previous
agm in addition under the combined code
on corporate governance directors are
required to submit themselves for reelection
by shareholders every three years
the directors retiring by rotation at the 2006
agm and offering themselves for reelection
are iain ferguson stanley musesengwa 
and stuart strathdee carole piwnica will
also be retiring by rotation at the 2006 agm
but will not be offering herself for reelection 
in addition robert walker who was
appointed as a director since the last 
agm will be retiring and offering himself 
for reelection 
iain ferguson stanley musesengwa and
stuart strathdee are all executive directors
and are employed under service contracts
the details of which are set out on page 58
robert walker does not have a service
contract
at no time during the year has any director
had any material interest in a contract with
the group being a contract of significance 
in relation to the group’s business 
a statement of directors’ interests in shares
of the company is given on page 64
corporate governance
the report on corporate governance 
is on pages 48 to 53 the directors’
remuneration report is on pages 54 to 64
research and development
the group spent £21 million 2005 – 
£20 million on research and development
during the year
financial risk policies
a summary of the company’s treasury
policies and objectives relating to financial
risk management including exposure to
associated risks is on pages 32 to 34
employment
the average number of employees in the
group during the year is given in note 9 
on page 82 
group companies operate within a
framework of human resources policies
practices and regulations appropriate to their
own market sector and country of operation
policies and procedures for recruitment
training and career development promote
equality of opportunity regardless of gender
sexual orientation age marital status
disability race religion or other beliefs and
ethnic or national origin the aim is to
encourage a culture in which all employees
have the opportunity to develop as fully as
possible in accordance with their individual
abilities and the needs of the group 
the group is committed to effective
communication with employees including
information on its performance and business
environment it follows appropriate
consultation procedures and has an
established european forum training is
concentrated on multiskilling to encourage
flexibility in working practices the group
runs a series of international management
programmes to develop management skills
and create valuable opportunities for the
crossfertilisation of management ideas
across the group
directors’ report tate  lyle annual report 2006   47
donations
worldwide charitable donations during the
year totalled £766000 2005 – £778000 
of which £386000 2005 – £317000 was
donated in the uk more details of the
group’s involvement in the community 
can be found in the corporate social
responsibility section of the operating 
and financial review on pages 35 to 41 
during the year in line with the group’s
policy no political donations were made in
the european union eu outside the eu
the group’s us food  industrial ingredients
business made contributions during the year
totalling us28000 £16000 2005 –
us29000 £16000 to state and national
political party committees and to the
campaign committees of state candidates
affiliated to the major parties contributions
were only made where allowed by state and
federal law the total includes us10000
£6000 2005 – us12000 £7000
contributed by the tate  lyle political action
committee pac the pac is funded entirely
by us employees employee contributions
are entirely voluntary and no pressure is
placed on us employees to participate 
no funds are provided to the pac by 
tate  lyle but under us law an employee
funded pac must bear the name of the
employing company
payment to suppliers
it is the group’s policy that uk operating
companies should follow the cbi prompt
payers’ code the code requires the
company to agree the terms of payment
with its suppliers to ensure its suppliers 
are aware of those terms and to abide by
them it is the group’s policy also to apply
the requirements of the code to wholly
owned companies around the world
wherever possible 
tate  lyle plc is a holding company and
had no amounts owing to trade creditors 
at 31 march 2006 
the group’s creditor days outstanding at 
31 march 2006 were 36 days 2005 – 
36 days
directors’ responsibilities for the accounts
the directors are responsible for preparing
the annual report and the group financial
statements in accordance with applicable
law and international financial reporting
standards ifrs as adopted by the
european union and for preparing the
parent company financial statements and 
the directors’ remuneration report in
accordance with applicable law and united
kingdom accounting standards united
kingdom generally accepted accounting
practice 
the directors are responsible for preparing
financial statements for each financial 
year which give a true and fair view in
accordance with ifrs as adopted by the
european union of the state of affairs of the
group and of the profit or loss of the group
and a true and fair view in accordance 
with united kingdom generally accepted
accounting practice of the state of affairs 
of the company for that period in preparing
those financial statements the directors are
required to
■ select suitable accounting policies and
then apply them consistently
■ make judgements and estimates that 
are reasonable and prudent and
■ state whether the group financial
statements comply with ifrs as 
adopted by the european union and
with regard to the parent company
financial statements whether applicable
accounting standards have been
followed subject to any material
departures disclosed and explained 
in the financial statements 
the directors confirm that they have
complied with the above requirements 
in preparing the financial statements
the directors are responsible for keeping
proper accounting records that disclose with
reasonable accuracy at any time the financial
position of the company and the group and
to enable them to ensure that the group
financial statements comply with the
companies act 1985 and article 4 of the
ias regulation and the parent company
financial statements and the directors’
remuneration report comply with the
companies act 1985 they are also
responsible for safeguarding the assets 
of the company and the group and hence
for taking reasonable steps for the
prevention and detection of fraud 
and other irregularities
so far as each director is aware there is no
relevant audit information that is information
needed by the company’s auditors in
connection with preparing their report of
which the company’s auditors are unaware
each director has taken all the steps that 
heshe ought to have taken in hisher duty
as a director in order to make himselfherself
aware of any relevant audit information and
to establish that the company’s auditors are
aware of that information
auditors
the auditors pricewaterhousecoopers llp 
have signified their willingness to continue in
office and a resolution reappointing them as
auditors will be proposed at the 2006 agm 
on behalf of the board 
robert gibber
company secretary
24 may 2006 48 tate  lyle annual report 2006
tate  lyle is committed to high standards
of corporate governance business integrity
and professionalism in the way it conducts
its activities in accordance with the listing
rules of the uk listing authority the
company is required to state whether 
it has complied with the provisions set 
out in section 1 of the combined code 
on corporate governance issued by the
financial reporting council in july 2003 
the code and where the provisions have
not been complied with to provide an
explanation the company is also required
to explain how it has applied the principles
set out in the code
the paragraphs below together with the
directors’ remuneration report on pages 
54 to 64 provide details of how the
company applies the principles and
complies with the provisions of the code
compliance with the combined code
throughout the year ended 31 march 2006
the company was in compliance with the
provisions and applied the principles of 
the code except that as a consequence 
of changes to the composition of the board
described in the directors’ report on 
page 46 from the beginning of the year 
to 1 may 2005 and from the date of the
annual general meeting agm on 28 july
2005 to 1 january 2006 at least half the
board excluding the chairman did not
consist of independent nonexecutive
directors since the appointment of robert
walker as an independent nonexecutive
director from 1 january 2006 the board’s
composition has been in compliance with
the code 
at the date of this annual report the 
board considers that the company is in
compliance with the applicable provisions 
of the code
board of directors
the board is collectively responsible for
promoting the success of the company 
and for providing entrepreneurial leadership
within a framework of prudent and effective
controls that enable risk to be assessed and
managed it sets the company’s strategic
aims and ensures that necessary financial
and human resources are in place to enable
these objectives to be met and undertakes
reviews of management performance 
in addition the board sets the company’s
values and standards and ensures that its
obligations to its shareholders and others 
are understood and met
the board has a formal schedule of matters
reserved to it for its decision this schedule 
is reviewed annually and includes approval of
■ group strategy
■ annual budget and operating plans
■ major capital expenditure acquisitions 
or divestments
■ annual and interim financial results 
■ safety and environmental policies
■ appointments to the board and as
company secretary
■ senior management structure 
responsibilities and succession plans 
■ treasury policies 
■ system of internal control and risk
management and
■ dividend policy
other specific responsibilities are delegated 
to board committees which operate within
clearly defined terms of reference details 
of the responsibilities delegated to the board
committees are given on pages 50 to 52 
the board meets at least eight times each
year two meetings usually take place at 
an operating subsidiary or joint venture
company board meetings are structured 
to allow open discussion and all directors
participate in discussing the strategy 
trading and financial performance and 
risk management of the company the chart
below shows the approximate time the board
has taken to consider agenda items during
the year separated into general categories
all substantive agenda items have
comprehensive briefing papers which are
circulated five days before the meeting
members of executive management attend
board meetings and make presentations 
to the board on a regular basis 
the company secretary is responsible for
ensuring that board procedures are followed
and that applicable rules and regulations are
complied with all directors have access to
the advice and services of the company
secretary whose appointment or removal 
strategy 44
operations 15
finance and risk 22
capital expenditure
and investments 9
governance 7
other 3
board allocation of time
for the year ended 31 march 2006
is a matter for the board as a whole 
in addition there is a formal procedure 
in place whereby in the furtherance of their 
duties directors can obtain independent
professional advice if necessary at the
company’s expense 
the company maintains appropriate
insurance cover in respect of legal proceedings
and other claims against its directors
the attendance of individual directors at
board meetings held during the year which
they were eligible to attend is shown in the
table below
meetings attended
sir david lees chairman 88
richard delbridge 88
iain ferguson 88
simon gifford 88
evert henkes 88
stanley musesengwa 88
kai nargolwala 68
carole piwnica 88
stuart strathdee 88
robert walker from 1 january 2006 23
allen yurko until 28 july 2005 22
dr barry zoumas from 1 may 2005 88
in the very few instances where a director 
is unable to attend a board or committee
meeting his or her comments on the briefing
papers to be considered at that meeting are
given in advance to the relevant chairman
chairman and chief executive
the roles of the chairman and chief
executive are separated and their
responsibilities are clearly established set
out in writing and agreed by the board the
chairman is responsible for the leadership
and workings of the board and ensuring 
its effectiveness and the chief executive 
for the running of the business and the
implementation of board strategy and policy
the significant current commitments of the
chairman sir david lees are set out in his
biography on page 42 during the year he
was appointed as deputy chairman and
senior nonexecutive director of qinetiq
group plc the board is satisfied that this
appointment and his other commitments do
not unduly restrict him from carrying out his
duties effectively
board balance and independence
the board currently comprises the
chairman who has no executive
responsibilities four executive directors 
and six nonexecutive directors 
corporate governance tate  lyle annual report 2006   49
with the exception of the chairman who 
is presumed under the code not to be
independent the board considers all the
nonexecutive directors to be independent
other than carole piwnica who is a former
chairman of amylum europe nv and is
paid by the group for consultancy services
which she performs in addition to her duties
as a nonexecutive director details of the
terms of her consultancy agreement are
given in the directors’ remuneration report
on page 59
in terms of the code at the date of 
this annual report the board currently
comprises five independent directors five
nonindependent directors including the 
four executive directors and the chairman 
richard delbridge is the senior independent
director and is available to shareholders if
they have any issues or concerns 
the nonexecutive directors have a wide
range of skills and knowledge and combine
broad business and commercial experience
with independent and objective judgement
the names and biographical details of the
current directors are given on pages 42 
and 43 the board is aware of the other
commitments of its nonexecutive directors
and is satisfied that these do not conflict
with their duties as directors of the
company changes to the commitments 
of the nonexecutive directors are reported
to the board 
the terms and conditions of appointment 
of the nonexecutive directors are available
for inspection at the company’s registered
office and will be available for inspection at
the agm
reelection of directors
the company’s articles of association
require the reelection of onethird of the
board or the nearest whole number below
onethird at each agm all directors are
subject to reelection at least once every
three years any directors appointed by 
the board since the last agm must stand 
for reelection at the next agm any non
executive directors who have served for
more than nine years will be subject to
annual reelection
the names of the directors retiring and
standing for reelection at the 2006 agm 
are set out on page 46 further details are
given in the letter from the chairman to
shareholders in relation to the 2006 agm 
information induction and professional
development
the chairman with the assistance of the
company secretary is responsible for
ensuring that the directors receive accurate
timely and clear information on all relevant
matters
on appointment to the board directors
receive a comprehensive induction
programme which includes site visits and
meetings with senior management across
the businesses and group functions new
directors also receive a pack of background
reading about the group and details of
board procedures and other governance
related matters major shareholders have
been offered the opportunity to meet new
nonexecutive directors as part of their
induction programme 
training and updates on particular issues 
are arranged for directors as appropriate 
on an ongoing basis taking into account
their individual qualifications and experience 
the company secretary also helps directors
to undertake any other professional
development they consider necessary or
desirable to assist them in carrying out their
duties as directors or as members of the
relevant board committees during the year
this included attendance by directors at
external training sessions and seminars run
by independent organisations on accounting
and governancerelated matters
visits to external events or organisations 
are also arranged for the board to help the
nonexecutive directors in particular to gain 
a deeper insight into the group’s strategy
and business activities during the year the
board visited the food ingredients europe
fair in paris and also leatherhead food
international in the uk a provider of
consumer research and sensory testing
services
performance evaluation
during the year the board carried out an
evaluation of the effectiveness of the board
and its committees as in previous years
this was an internal exercise led by the
chairman 
the 2006 evaluation involved the chairman
holding onetoone performance evaluation
meetings with each director the company
secretary and the group human resources
director a number of assessment areas
both on an individual and a collective basis
were identified by the chairman in advance
of these meetings which were used as 
the framework for the discussions 
the effectiveness of the changes made 
to the board’s processes and procedures
following the evaluation in 2005 were one 
of the areas discussed the chairman
summarised the main themes and
comments arising from the meetings 
and presented a report to the board for
discussion the board concluded that 
it was operating in an effective manner 
but identified some areas where further
improvements could be made such as to 
the format of strategic papers provided to
the board and the content of the agenda for
the annual full day board meeting to discuss
the group’s strategy
with regard to the performance of individual
directors following the evaluation process
the chairman concluded that each director
continues to make an effective contribution
to the work of the board is well prepared
and informed concerning items to be
considered by the board has a good
understanding of the group’s businesses
and their commitment to the role remains
strong evidenced by the board and
committee attendance records set out 
in this report 
during the year the nonexecutive directors
met together without the chairman present
under the chairmanship of the senior
independent director to appraise the
chairman’s performance the senior
independent director having first sought the
views of the executive directors in addition
the chairman held a private meeting with the
nonexecutive directors to appraise the chief
executive’s performance and to address any
other matters the nonexecutive directors
wished to raise the outcome of both
appraisals was highly positive 
the audit nominations and remuneration
committees each also held an evaluation of
their work and effectiveness during the year
the results of which were reported to the
board by the respective committee
chairmen the reviews concluded that 
each committee was operating in an
effective manner
shareholder communications
the chief executive group finance director
and director of investor relations with 
the support of the chairman and senior
independent director maintain a regular
programme of visits and presentations to
major institutional shareholders a detailed
report of these discussions and meetings 
is provided to the board each time it meets  50 tate  lyle annual report 2006
in addition all directors receive copies 
of reports issued by analysts and brokers 
on the company during the year the 
board received a briefing from one of the
company’s financial advisers on investors’
perceptions of tate  lyle and its investor
relations activities
the nonexecutive directors are encouraged 
to attend presentations to analysts and
shareholders and in particular the
presentations that take place on the
publication of the company’s interim 
and annual results 
the chairman provides feedback to the
board on any matters raised with him by
major shareholders 
some 250 shareholders normally attend the
agm and are invited to ask questions and
meet informally with the directors after the
formal proceedings have ended the level 
of proxy votes lodged for and against 
each resolution together with the level 
of abstentions are announced at the agm
following each vote on a show of hands 
the company aims to present a balanced
and understandable assessment in all its
reports to the public and to regulators 
key announcements financial reports and
other information about the group can 
be found on the company’s website at
wwwtateandlylecom
board committees
there are four main board committees
chairman’s nominations remuneration
and audit the terms of reference of each
committee are reviewed annually by the
board are available upon request from the
company secretary and are on the group’s
website at wwwtateandlylecom
the committees are provided with sufficient
resources to undertake their duties through
access to the services of the company
secretariat and if deemed necessary can
obtain independent professional advice at
the company’s expense the company
secretary robert gibber is secretary to
each board committee
chairman’s committee
the members of the committee during 
the year together with a record of their
attendance at meetings which they were
eligible to attend are as follows
meetings attended
sir david lees chairman 88
richard delbridge 88
iain ferguson 88
evert henkes 88
kai nargolwala 68
carole piwnica 88
robert walker from 1 january 2006 23
allen yurko until 28 july 2005 22
dr barry zoumas from 31 may 2005 88
the committee comprises the nonexecutive
directors and the chief executive under the
chairmanship of the chairman of the board
the committee meets before each board
meeting as required and provides an
opportunity for the chairman and chief
executive to brief and obtain the views of the
nonexecutive directors on specific issues
nominations committee
the members of the committee during 
the year together with a record of their
attendance at meetings which they were
eligible to attend are set out below
meetings attended
sir david lees chairman 88
richard delbridge 88
iain ferguson 88
evert henkes 88
kai nargolwala 68
carole piwnica 88
robert walker from 1 january 2006 23
allen yurko until 28 july 2005 22
dr barry zoumas from 31 may 2005 88
the committee comprises the nonexecutive
directors and the chief executive under the
chairmanship of the chairman of the board
except when the committee is dealing with
the appointment of a successor to the
chairman of the board when the senior
independent director chairs the committee
in terms of the code at the date of this
annual report the committee comprises 
a majority of independent nonexecutive
directors 
the main responsibilities of the committee
are
■ to review the size and composition of 
the board including the planning of
succession to the board and the
leadership needs of the group generally
■ to make recommendations to the board
on candidates for appointment as
executive and nonexecutive directors
and as company secretary taking into
account the balance of the board and the
required blend of skills and experience
■ to make recommendations to the board
on the appropriate processes for the
appointment of the chairman of the
board and
■ to make recommendations to the board
on the nomination of the senior
independent director the reappointment
of nonexecutive directors upon the
expiry of their term of office and the
proposed reelection of directors retiring
by rotation at the agm
during the year two nonexecutive directors
dr barry zoumas and robert walker were
appointed to the board in the case of each
appointment the committee first considered
the particular skills knowledge and
experience that would most benefit the
board external recruitment consultants were
engaged who provided the committee with
a shortlist of potential appointees from which
candidates were interviewed and then
selected for recommendation to the board
for appointment
remuneration committee
the members of the committee during 
the year together with a record of their
attendance at meetings which they were
eligible to attend are set out below
meetings attended
evert henkes chairman 88
richard delbridge 88
kai nargolwala 68
robert walker from 1 january 2006 23
allen yurko until 28 july 2005 22
dr barry zoumas from 31 may 2005 88
the committee meets as required usually
before each board meeting the committee
consists solely of independent nonexecutive
directors 
the committee determines the individual
remuneration packages of each executive
director and other members of the group
management committee this includes base
salary bonus longterm incentives benefits
and terms of employment including those
upon which their service may be terminated
additionally the committee approves the
base salary longterm incentives and
benefits of members of the group
operational committee in consultation 
with the chief executive the committee 
also determines the remuneration 
of the chairman 
corporate governance continued tate  lyle annual report 2006   51
the remuneration of the nonexecutive
directors is determined by the board
excluding the nonexecutive directors 
the directors’ remuneration report on
pages 54 to 64 provides more information
on the company’s executive remuneration
policy and practice and on the working 
of the committee
audit committee
the members of the committee during 
the year together with a record of their
attendance at meetings which they were
eligible to attend are set out below
meetings attended
richard delbridge chairman 44
evert henkes 44
kai nargolwala 34
robert walker from 1 january 2006 11
allen yurko until 28 july 2005 22
dr barry zoumas from 31 may 2005 33
the committee consists solely of
independent nonexecutive directors 
all the committee members have 
extensive management experience in 
large international organisations and the
chairman richard delbridge who is a
chartered accountant is a former group
finance director of a ftse 100 company 
the committee meets four times each year
the chairman chief executive group
finance director head of internal audit and
other members of the senior management
team as invited by the committee together
with the external auditors usually attend
meetings nonexecutive directors who are
not members of the committee are also
invited to attend meetings to provide advice
as necessary the minutes of each meeting
are circulated to all members of the board
both the head of internal audit and the
external auditors have access to the
chairman of the committee outside 
of formal committee meetings 
the committee maintains a formal calendar
of items which are to be considered at each
committee meeting and within the annual
audit cycle to ensure that its work is in line
with the requirements of the code 
the main responsibilities of the committee
are
■ to monitor the integrity of the interim and
annual financial statements and any
formal announcements relating to the
company’s financial performance paying
particular attention to significant reporting
judgements contained therein including
critical accounting policies and practices
■ to review the group’s internal financial
controls and its internal control and risk
management systems
■ to review and monitor the external
auditors’ independence and objectivity
and the effectiveness of the audit
process taking into consideration
relevant uk professional and regulatory
requirements 
■ to make recommendations to the board
for submission to shareholders for their
approval in general meeting in relation 
to the appointment reappointment and
removal of the external auditors and 
to approve the remuneration and terms 
of engagement of the external auditors
■ to monitor and review the effectiveness 
of the internal audit function 
■ to develop and implement a policy on 
the engagement of the external auditors
to supply nonaudit services and
■ to review arrangements by which
employees may in confidence raise
concerns about possible improprieties 
in matters of financial reporting financial
control or other matters
during the year the audit committee
discharged its responsibilities as set out 
in its terms of reference by undertaking 
the following work
■ meeting prior to the board meeting 
at which the annual report and financial
statements and the interim report and
financial statements were approved 
in doing so the committee reviewed
significant accounting policies financial
reporting issues and judgements and
reports from the external auditors
■ reviewing the effectiveness of the external
audit process the external auditors’
strategy and plan for the audit and the
qualifications expertise resources and
independence of the external auditors 
■ agreeing the terms of engagement and
fee of the external auditors for the audit
and recommending to the board that
pricewaterhousecoopers llp be
proposed to shareholders at the annual
general meeting for reappointment 
as external auditors to the company
■ reviewing the policy on auditor
independence and the provision of non
audit services by the external auditors 
■ receiving and considering regular reports
from the head of internal audit on the
group’s risk management system
findings from internal audit reviews 
and the remit organisation annual plan
and resources of the internal audit
function
■ undertaking a review of the effectiveness
of the internal audit function the
committee’s review in 2006 concluded
that the internal audit function was
operating effectively
■ reviewing the committee’s terms of
reference and its effectiveness and
recommending changes to the board as
a result of this review the review in 2006
concluded that no recommendations to
amend the terms of reference were
required and that the committee was
operating in an effective manner
■ reviewing the annual report disclosure
items relevant to the committee including
the going concern statement and the
reports on risk management and internal
control
■ reviewing the potential impact on the
group’s financial statements of significant
corporate governance and accounting
matters and reviewing the implementation
of international financial reporting
standards 
■ reviewing the findings of the external
auditors their management letters 
on accounting procedures and internal
financial controls and audit representation
letters 
■ meeting privately with the external
auditors and the head of internal audit 
■ reviewing procedures under which
employees may in confidence raise
concerns about possible improprieties 
in matters of financial reporting financial
control or other matters and
■ reviewing an annual report on the 
group’s system of internal control and 
its effectiveness and reporting the results
of the review to the board 
during the year training was also provided
to board and committee members outside
the scheduled meetings on subjects 
of particular relevance
the committee operates a policy to
safeguard the objectivity and independence
of the external auditors this policy sets 
out certain disclosure requirements by 
the external auditors to the committee
restrictions on the employment of the
external auditors’ former employees partner
rotation and procedures for the approval of
nonaudit services by the external auditors
during the year the committee reviewed the
processes which pricewaterhousecoopers
llp have in place to safeguard their 52 tate  lyle annual report 2006
independence and received a letter from
them confirming that in their opinion they
remained independent 
the procedure for the provision of nonaudit
related services by the external auditors is
governed by a schedule appended to the
policy on auditor independence this
schedule categorises such services
between
■ those services which the external auditors
are permitted to provide 
■ those services which the external auditors
are not permitted to provide and
■ those services which require approval of
the audit committee before the external
auditors can be appointed 
a report is made to the committee each
time it meets setting out the nonaudit
services provided by the external auditors
during the year and the fees charged details
of the amounts paid to the external auditors
for audit auditrelated work and nonaudit
work is given in note 7 to the financial
statements on page 81
having undertaken a review of the 
nonaudit related services provided during
the year the committee is satisfied that 
they did not prejudice the external 
auditors’ independence 
executive committees
the senior management team operates
through two executive committees the
group management committee and the
group operational committee 
the group management committee 
which is chaired by iain ferguson chief
executive oversees the development and
execution of the group’s strategy and has
overall responsibility for achieving business
results the committee comprises the four
executive directors the group human
resources director and the company
secretary who is also the group’s general
counsel biographical details for members
of the group management committee can
be found on pages 42 to 44
the group operational committee which 
is chaired by stanley musesengwa chief
operating officer is responsible for all
aspects of the daytoday operations and
trading of the group the members of the
group operational committee are set out
on page 45
the two committees meet regularly either
in person or by video conference and at
least four times a year both committees
meet together
risk management
the board of directors has overall
responsibility for the group’s system 
of internal control and risk management 
the schedule of matters reserved to the
board ensures that the directors control
amongst other matters all significant
strategic financial and organisational issues 
the group’s enterprisewide risk
management and reporting process 
which was developed defined and rolled 
out across the group by a dedicated risk
management team assists management
throughout the group to identify assess and
mitigate risk the process which is designed
to deliver competitive advantage for the
group involves the identification and
prioritisation of key risks through an ongoing
programme of workshops facilitated by the
risk management team held around the
group during the year over 325 employees
attended 34 risk workshops held throughout
the group in order to identify risks to the
business the identified risks then cascade
up through functional and divisional levels 
to the group operational and group
management committees this culminates
in the identification of the group’s key
business financial operational and
compliance risks with associated action
plans and controls to mitigate them where
possible and to the extent deemed
appropriate taking account of costs 
and benefits 
under the process senior executive
management confirms to the audit
committee at least twice a year that these
key risks are being managed appropriately
within their operations and controls have
been examined and are effective
responsibility for managing each key risk
and the associated mitigating control is
allocated to an individual executive within
each division changes in the status of the
key risks and changes to the risk matrix are
reported quarterly to executive management
and to the board the board reviews the
group’s key risks quarterly
internal control
the board of directors has overall
responsibility for the group’s system 
of internal control and for reviewing its
effectiveness the board delegates to
executive management the responsibility 
for designing operating and monitoring both
the system and the maintenance of effective
internal control in each of the businesses
which comprise the group these systems
of internal control are designed to manage
rather than eliminate risk and can only
provide reasonable and not absolute
assurance against material errors losses
fraud or breaches of laws or regulations 
all the material joint ventures which the
group are party to currently follow the
group’s formal systems of internal control
and their internal control procedures are
regularly reviewed by the group’s internal
audit function the systems of internal
control are based on a process of
identifying evaluating and managing risks
and include the risk management processes
set out above these accord with the
guidance in the turnbull report and were 
in place throughout this year and up to the
date of the signing of this annual report
the key risks that might hinder the
achievement of the group’s business
objectives are managed controlled and
monitored by the processes described
below
■ the group’s businesses operate under
mandatory written policies and
procedural manuals to provide an
appropriate control environment the
group policies and procedures set out
the group’s commitment to competence
integrity and ethical values these policies
are reviewed by the board annually and
changes are made as appropriate to
enhance existing control procedures
■ key strategic risks are addressed through
the group’s process of preparation of
plans by each operating unit and the
compilation of these risks in the group’s
operating plan
■ there is a comprehensive annual planning
and financial reporting system comparing
results with plan and the previous year 
on a monthly and cumulative basis 
this process of planning budgeting and
making shortterm forecasts provides
early warning of potential financial risks
revised forecasts for the year are
produced at least quarterly reports
include a monthly cash flow statement
projected for 15 months
■ the chief executive group finance
director and chief operating officer
undertake regular financial and
operational reviews of the major 
operating units within the group 
■ the chief executive chief operating
officer and the group finance director
submit written reports to each board
meeting which include consideration of
changing threats and opportunities within
corporate governance continued the business the standard board review
of investments and disposals includes
identification of major risks that could
affect the outcome of each project with 
a sensitivity analysis
■ the company has defined procedures 
for the authorisation and project
management of capital expenditure 
and investment granting of guarantees
trading and hedging of currencies and
commodities and use of treasury
products and 
■ formal annual reports and presentations
are received by the board on certain
areas of special risk these include
insurance treasury management
commodity trading pensions safety 
and environmental issues
the audit committee periodically reviews the
effectiveness of the system of internal control
through reports from the external auditors
and the internal audit function the internal
audit function follows a planned programme
of reviews that are aligned to the risks
existing in the group’s businesses they
have the authority to review any relevant
aspect of the business 
the board with the assistance of the audit
committee has conducted an annual
assessment of the effectiveness of the
systems of risk management and internal
control during the financial year and up to
the date of this annual report the review
which is coordinated by the internal audit
function includes a groupwide certification
that effective internal controls are in place
and being operated effectively the internal
audit function monitors and selectively
checks the results of this exercise ensuring
that the representations made are consistent
with the results of the department’s work
during the year where weaknesses have
been identified plans for correcting them are
also reported the results of this exercise are
summarised for the audit committee and
the board in the event that any significant
losses are incurred during the year as a
result of the failure of controls a detailed
analysis would be provided to the audit
committee and the board the board
confirms that no significant weaknesses
were identified in relation to the review
conducted during the year and accordingly
no remedial actions are required to be taken
tate  lyle annual report 2006   53 54 tate  lyle annual report 2006
this report has been prepared in
accordance with the requirements of
schedule 7a of the companies act 
1985 the act and the listing rules 
of the uk listing authority
pricewaterhousecoopers llp have audited
the contents of the report to the extent
required by the act the tabular information
on pages 60 to 64 a resolution to approve
this report will be proposed at the annual
general meeting agm on 19 july 2006
remuneration committee
the remuneration committee the
committee comprises all the independent
nonexecutive directors of the company 
the current members are evert henkes
chairman richard delbridge kai
nargolwala robert walker appointed from
1 january 2006 and dr barry zoumas
appointed from 31 may 2005 evert
henkes succeeded allen yurko as chairman
of the committee on 28 july 2005
the committee met eight times during the
year individual members’ attendance record
at meetings during the year is given in the
table on page 50 the terms of reference 
of the committee a copy of which can 
be found on the company’s website at
wwwtateandlylecom are reviewed annually
to ensure they meet best practice 
the committee conducts a review of its
work and effectiveness each year and any
recommendations from this review are
reported to the board the 2006 review
concluded that the committee had fulfilled
its role and responsibilities appropriately
the committee determines the individual
remuneration packages of each executive
director and other members of the group
management committee this includes base
salary bonus longterm incentives benefits
and terms of employment including those
upon which their service may be terminated
additionally the committee approves the
base salary longterm incentives and
benefits of members of the group
operational committee in consultation 
with the chief executive the committee 
also determines the remuneration of 
the chairman 
the chairman sir david lees chief
executive iain ferguson group human
resources director corry wille and
company secretary and general counsel
robert gibber who acts as secretary to
the committee are normally invited to attend
meetings although not when their own
remuneration arrangements are discussed
in addition nonexecutive directors who 
are not members of the committee carole
piwnica are invited to attend meetings 
to provide advice as required 
to ensure that the group’s remuneration
practices remain market competitive the
committee receives advice from independent
remuneration consultants the committee
operates a policy whereby an individual
consultant appointed to advise the
committee on the remuneration of executive
directors and certain other senior executives
shall not also advise general management 
on the remuneration of any other executives
in the group in accordance with this policy
during the year the committee again
appointed leslie moss of hewitt bacon 
woodrow limited hewitt to act as its
principal adviser on executive remuneration
arrangements in addition to market
remuneration data provided by hewitt the
committee is provided with data from a
survey published by towers perrin and has
appointed kepler associates to provide total
shareholder return performance data and
ranking information for the performance
share plan and deferred bonus share plan
during the year hewitt also provided the
group with consulting services in relation 
to retirement and other benefits as well 
as general compensation advice and payroll
administration for the new plant in singapore
towers perrin and kepler associates
provided no other services to the group
remuneration policy
the remuneration committee is responsible
for setting the remuneration of the executive
directors in accordance with a policy
determined by the committee and agreed
with the board the remuneration policy 
for executive directors and senior executives
is to provide remuneration packages which
attract retain and motivate highcalibre
individuals to ensure that the group is
managed successfully to the benefit of
shareholders to achieve this the
remuneration package is designed
■ to be competitive and commensurate
with other international businesses of
similar size
■ to align the interests of executives and
shareholders by rewarding the creation 
of sustained growth in shareholder value
■ to reward above average performance
■ to ensure that performancerelated
elements form a significant proportion 
of the total remuneration package and
■ to take into account local country
practice
it is intended that this policy continues to
apply for the year ended 31 march 2007 
and subsequent years
review of executive remuneration in 2005
in the 2005 annual report we described
the review of the company’s executive
remuneration arrangements that was
undertaken during the year ended 
31 march 2005
following this review which included
consultation with the company’s major
shareholders a number of changes were
proposed to the executive remuneration
arrangements within the context of the
existing remuneration policy no change was
proposed to the base salary policy but some
changes were proposed to the longterm
incentive elements of the executive
remuneration package the changes
included 
■ the cessation of awards under the 2000
executive share option scheme 
■ an increase in the target and maximum
awards under the annual bonus scheme
■ the introduction of a new deferred bonus
share plan and 
■ an increase in the maximum award level
of the performance share plan this was
proposed to enable the overall value of
annual longterm incentive awards to 
be maintained through an increase of
performance shares to replace options
the changes proposed in 2005 were
designed to make the remuneration package
more effective promote executive share
ownership aid executive retention and better
align the interests of executives and
shareholders by making a greater proportion
of the remuneration package dependent on
the success of management delivering
superior shareholder returns the changes
were explained in the directors’ remuneration
report for 2005 and details provided with the
2005 notice of agm the changes were
approved by shareholders at the 2005 agm
with over 96 of proxies’ votes lodged
supporting the appropriate resolutions
the committee believes that the existing
executive remuneration package following
the changes approved by shareholders in
2005 remains appropriate and it does 
not propose making any changes to the
remuneration package for the year ending
31 march 2007 accordingly for the year
ending 31 march 2007 the annual bonus
scheme performance share plan and
deferred bonus share plan will operate 
on the same basis as for the year ended 
31 march 2006
directors’ remuneration report remuneration package
composition
the current remuneration package for
executive directors consists of base salary
annual bonus longterm incentives
pensions and other benefits the company’s
policy is to ensure that a significant
proportion of the total remuneration package
is performancerelated even at target levels 
the relative proportions of an executive
director’s remuneration when valued at both
ontarget and stretch performance levels 
on the basis of the expected value of the
longterm incentives but excluding post
retirement benefits and allowances paid 
in lieu of pensions are shown in the 
charts below
base salary
the group’s policy is for base salaries 
to take account of the median relative to
similar companies and also to reflect job
responsibilities and the sustained level of
individual performance the committee
reviews the base salary of each executive
director annually
the most recent annual review of executive
directors’ base salaries occurred on 1 april
2006 when undertaking this review the
committee considered external market data
supplied by its independent remuneration
adviser individual performance and also 
the level of pay awards made to other
employees and executives throughout the
group the annual base salaries for each
target performance
composition of remuneration package 
for executive directors average as  
of total remuneration
49
nonperformance
related pay
51
performance
related pay
stretch performance
24
nonperformance
related pay
76
performance
related pay
executive director are shown in the table
below
as at as at 
director 1 april 2006 1 april 2005
iain ferguson £675000 £628000
simon gifford £470000 £447000
stanley musesengwa £470000 £447000
stuart strathdee £320000 £305000
benefits
benefits comprise principally a company car
or a cash allowance in lieu health insurance
and premiums paid on life assurance policies
in relation to pension arrangements these
benefits do not form part of pensionable
earnings
annual bonus scheme
the group operates an annual cash bonus
scheme for executive directors and senior
executives which is determined by reference
to the performance of the group or
appropriate division or subsidiary primarily
against financial objectives the group’s
policy is that annual bonuses payable under
the scheme are capped at 100 of base
salary or lower dependent on the executive’s
responsibilities there is a threshold level
below which no bonus is paid the
committee reviews the attainment of the
financial targets and agrees the bonus
payments bonuses paid to executive
directors do not form part of pensionable
earnings
for the year ended 31 march 2006 the
target award level for the chief executive
was 50 of base salary and for the other
executive directors was 45 of base salary 
the maximum award level was 100 of
base salary for the chief executive and 90
of base salary for the other executive
directors
the performance criteria for the annual
bonus scheme are set by the committee 
at the beginning of each financial year 
for the year ended 31 march 2006 the
performance criteria consisted of a target
award payable on the achievement of a
predetermined level of group profit before
tax exceptional items and amortisation
pbtea and a maximum award payable 
for the achievement of a pbtea level
significantly in excess of target performance
the level of pbtea for target performance
set by the committee at the beginning of 
the financial year was in line with the market’s
expectations at that time as provided by
brokers’ forecasts to ensure that bonuses
are not inflated or deflated as a result of
exchange rate movements during the year
the pbtea numbers for bonus purposes are
restated on the basis of the exchange rates
used for the group’s annual business plan
agreed by the board at the start of the year
the pbtea achieved by the group for the
year ended 31 march 2006 restated on 
a constant exchange rate basis was 13
above the previous year and exceeded the
predetermined level of target performance
reflecting the strong performance of the
group’s value added businesses as a result
the chief executive received a bonus of 83
of base salary and the other executive
directors received a bonus of 75 of 
base salary
executive directors and other selected senior
executives have the opportunity to invest up
to 50 of their cash bonus for the year
ended 31 march 2006 in tate  lyle shares
through the deferred bonus share plan
details of which can be found on page 56
current longterm incentive arrangements
the committee believes that performance
based longterm incentive plans ltips
provide executive directors and senior
executives with longterm rewards that
closely align with shareholders’ interests 
and are an important component of the
overall executive remuneration package 
the company currently operates two ltips
being the tate  lyle 2003 performance
share plan and the tate  lyle 2005
deferred bonus share plan the
remuneration committee is responsible 
for the operation of both ltips
i 2003 performance share plan
shareholders approved the performance
share plan psp at the agm in july 2003
executive directors and other selected senior
executives are eligible to participate in the
psp at the discretion of the committee
participants are awarded annually 
a conditional right to receive a number 
of tate  lyle plc ordinary shares in value 
up to a maximum of 175 of base salary
and calculated by reference to the average
of the daily closing prices of tate  lyle plc
ordinary shares during the six months
preceding the beginning of the measurement
period the number of shares that a
participant receives depends on the group’s
performance during the measurement period
which is the three years commencing on 
1 april in the year of the award 
tate  lyle annual report 2006   55 56 tate  lyle annual report 2006
directors’ remuneration report continued
performance is measured by comparing 
the total shareholder return or tsr share
price growth plus reinvested dividends from
tate  lyle plc relative to a comparator
group of companies the committee chose
relative tsr for the psp as it closely aligns
executives’ and shareholders’ interests and
is an objective measure of the value created
for shareholders for awards made in 2003
and 2004 the comparator group consisted
of the ftse 100 index at the start of the
measurement period excluding companies 
in the telecommunications media
technology and financial services sectors
for the award in 2005 and for this year’s
award the comparator group consists of 
the companies occupying positions 50 to
130 of the ftse index at the beginning of
the measurement period the committee
considers this to be an appropriate
comparator group for tate  lyle given 
the company’s position in the ftse 100 the
wide range of market capitalisation between
the lower and upper ends of the ftse 100
index and the fact that the company is
expected to remain within the proposed 
peer group for the foreseeable future 
the committee reviews the continued
validity of the comparator group annually 
if at the end of the measurement period
tate  lyle ranks in the upper quartile of 
the comparator group participants in the
psp will receive all of the shares conditionally
awarded to them if the ranking is at the
median level 25 of the shares will be
received no shares will be received for
below median performance for intermediate
rankings between median and upper quartile
participants will receive a proportionate
number of shares increasing on a straightline
basis this vesting scale is illustrated in the
graph at the top of this page
irrespective of tate  lyle’s tsr before 
any shares become eligible for release the
committee must be satisfied that this is
justified by the underlying financial
performance of the group over the
measurement period
at the end of the threeyear measurement
period the conditional award is converted
into a deferred right to acquire the
appropriate number of shares which will not
be released to the participant for one further
year other than in the specific circumstances
set out in the rules of the psp  participants
benefit from dividends on shares which have
already vested during the retention period 
if a participant resigns during the oneyear
retention period the deferred right to acquire
the appropriate number of shares will lapse
details of the measurement of the
performance condition for the psp award 
in june 2003 are set out on page 59
ii deferred bonus share plan
shareholders approved the deferred bonus
share plan dbsp at the agm in july 2005
the committee has the discretion to select
senior employees of the group to participate
in the dbsp  currently participation is
restricted to the four executive directors 
and other key senior executives
under the dbsp  executives have the
opportunity to defer up to 50 of their
annual cash bonus after deduction of tax
national insurance or other social security
payment and invest the amount deferred 
in the company’s shares subject to the
satisfaction of employment conditions and 
a performance target over the performance
period participants will receive awards of
matching shares based on the number of
shares which could have been acquired from
the gross bonus amount deferred by the
participant awards of matching shares are
not pensionable in any circumstances
the performance target is linked to the
company’s tsr relative to a comparator
group of companies over a threeyear
median 75th
award as  of maximum
tate  lyle relative tsr performance 
psp vesting schedule
100
75
50
25
0
period participants must also remain
employees of the group throughout the
performance period the committee chose
relative tsr for the dbsp as it closely aligns
executives’ and shareholders’ interests and
is an objective measure of the value created
for shareholders for the dbsp award in
2005 and for this year’s award the
comparator group against which 
tate  lyle’s relative tsr performance is
measured is the same as for the psp  being
companies at positions 50 to 130 of the
ftse index at the start of the performance
period all share prices for the purposes 
of the tsr calculation are based on a
sixmonth average the ratio of matching
shares awarded under the dbsp is
■ if the shares are held throughout the
threeyear performance period and the
executive continues to be employed by
the company matching shares are
awarded on the basis of one matching
share for every three shares deferred
■ or if tate  lyle’s relative tsr during 
the threeyear performance period is
between median and upper quartile of
the comparator group of companies one
matching share will be awarded for each
share deferred
■ or if tate  lyle’s relative tsr during the
threeyear performance period reaches
the upper quartile of the comparator
group two matching shares will be
awarded for each share deferred
there is no retesting of the performance
target and no apportionment for intermediate
rankings in the comparator group between
median and upper quartile during the
performance period dividends are paid 
on the deferred shares since the shares 
in effect already belong to the executive 
but not on matching shares
the committee is responsible for the
operation of the dbsp and reviews the
continued appropriateness of the main
features of the dbsp annually in its review
this year the committee discussed whether
it should continue to award participants one
matching share for every three shares
deferred based on continued employment
over the performance period the committee
concluded that this award which would only
give rise to a relatively small number of
shares remains an important retention
incentive for key executives as the company
looks to continue to implement its strategy
to grow the contribution from value added
products the committee will continue to review the appropriateness of this and the
other main features of the dbsp annually
suspended 2000 executive share 
option scheme
between august 2000 and june 2004
options were granted under the executive
share option scheme 2000 scheme 
to executive directors and other senior
executives and employees in 2005
however the committee decided to
suspend granting options under the 2000
scheme whilst the committee retains the
discretion to make option grants in the future
in exceptional circumstances for example 
in hiring packages there is no current
intention to make use of this discretionary
power no options have been granted under
the 2000 scheme since it was suspended 
in june 2005
before options can be exercised under the
2000 scheme earnings per share eps
performance criteria need to be met 
the performance condition attached to 
the exercise of options is scaled such that 
if over the first three consecutive years the
growth in the company’s normalised eps
has exceeded the growth in the uk retail
price index excluding mortgage interest
payments rpix by an average of
■ at least 3 per year 93 over three
years then 50 of options granted may 
be exercised
■ at least 4 per year 125 over three
years then 100 of options granted
may be exercised
there is no apportionment between the two
fixed vesting points
options granted in june 2004 have no
rolling retest and accordingly if they do not
meet the performance condition at the end
of the threeyear performance period they
will lapse options granted prior to june
2004 which do not meet the performance
condition in the third year may be exercised
in subsequent years up to ten years after
the date the options were granted but only 
if the appropriate compound performance
condition is met 
the achievement or otherwise of the
performance condition is assessed by 
the committee
the committee has ensured that following
the transition to international financial
reporting standards the eps figures
required to carry out the calculation for 
the performance condition have been
calculated on a fair and consistent basis 
this calculation has been reviewed by 
the company’s external auditors
closed 1992 executive share option
scheme
prior to the approval of the 2000 scheme
options were granted under uk and
international executive share option
schemes which were approved by
shareholders in 1992 the 1992 schemes
the exercise of executive share options
granted since november 1995 under the
1992 schemes is subject to the group
achieving an increase in fully diluted eps 
of 6 more than the increase in the uk
retail price index during any period of three
consecutive financial years over the life of 
the option since the approval of the 2000
scheme no option grants have been 
made under the 1992 schemes which 
are now closed
sharesave scheme
the company has a sharesave scheme that
is open to all employees in the uk including
executive directors no performance
conditions are attached to options granted
under the scheme as it is an allemployee
scheme options granted to scheme
participants are normally set at a discount 
of 10 to the market value of the shares 
at grant
executive shareholding policy
to align the interests of executive directors
with those of shareholders a policy is 
in place under which executive directors 
are expected to build and maintain a
shareholding in the company equivalent 
to one times base salary executive directors
who have not met their target shareholding
are expected to retain a significant
proportion of shares acquired through the
company’s longterm incentive plans in
order to meet their target
external appointments
the board believes that the company 
can benefit from its executive directors
holding a nonexecutive directorship 
such appointments are subject to the
approval of the board and are normally
restricted to one for each executive director
fees may be retained by the executive
director concerned 
stuart strathdee is a nonexecutive director
of james finlay limited for which the fees
payable are £15000 per annum iain
ferguson was a nonexecutive director 
of sygen international plc until december
2005 for which the fees payable were
£30000 per annum both directors retained
the fees paid to them during the year in
respect of these appointments
pensions
policy
the company’s policy is to provide
retirement and other benefits which reflect
local market practice at median levels
retirement benefits in the form of pension
andor lump sums are provided through 
taxapproved schemes where possible
covering executives in the country and
business sector in which they perform their
principal duties the group’s largest pension
scheme is the ukbased tate  lyle group
pension scheme group scheme which 
is a defined benefit arrangement the
company closed the group scheme to new
entrants from 1 april 2002 and since then
new employees have been offered defined
contribution type pension provision through
a stakeholder plan
uk pensions tax simplification legislation
during the year in advance of the
introduction of uk pensions tax simplification
legislation from 6 april 2006 the committee
reviewed its policy and practices for the
provision of retirement benefits for those
employees who are members of the group
scheme including executive directors
following this review the committee
decided that
■ executives covered under the defined
benefit scheme but not subject to the 
uk statutory earnings cap can choose 
to take either a cash allowance in lieu 
of future pension accrual or incur tax
above the lifetime allowance
■ executives covered under the defined
benefit scheme but who have been
subject to the uk statutory earnings cap
and currently receive a cash allowance in
lieu of pension as a percentage of base
salary can elect to give up the cash
allowance in exchange for future pension
accrual on full salary the earnings cap
will not be lifted however for past
service
the cost to the company of the new
arrangements is broadly the same as for 
the existing pension provision and salary
supplement arrangements 
tate  lyle annual report 2006   57 58 tate  lyle annual report 2006
individual executive directors
stuart strathdee is a member of the 
group scheme and is eligible at age 60 
for a pension equal to twothirds of his 
basic salary in the highest of his last five
completed tax years the benefit also
includes a widow’s pension payable on his
death and a lump sum on death in service
once in payment his pension and any
subsequent widow’s pension is increased
each year in line with the retail price index
rpi up to a maximum of 5 with a
minimum of 3 bonuses are not
pensionable with effect from 6 april 2006
stuart strathdee elected to continue with
future pension accrual and so potentially
may incur tax above the lifetime allowance
no cash alternative will be paid
during the year simon gifford was a
member of the group scheme eligible 
for pension benefits on the same terms 
as stuart strathdee on 31 march 2006
however he opted out of the group scheme
and requested that a transfer value of his
accrued pension benefits be paid to external
pension arrangements the transfer value
was paid on 31 march 2006 details of
which are given on page 63 following
payment of the transfer value he has
discharged the group scheme of all liability
in relation to his accrued pension benefits
he is not being provided with any further
pension benefits from the company but
remains covered for the lump sum death 
in service benefit
stanley musesengwa is a member of the
group scheme and is eligible at age 62 
for a pension equal to 4916 of his 
basic salary in the highest of his last five
completed tax years historically his basic
salary for pension purposes has been 
limited to the uk statutory earnings cap
the benefit also includes a widow’s pension
payable on his death and a lump sum on
death in service once in payment to him 
or his widow the pension is increased each
year in line with the rpi up to a maximum of
5 with a minimum of 3 bonuses are not
pensionable with effect from 6 april 2006
stanley musesengwa elected to forego his
cash allowance in lieu of pension and receive
future pension accrual on full base salary 
the earnings cap will not be lifted however
for past service
iain ferguson is not a member of the 
group scheme and accordingly accrues 
no pension benefits under this scheme 
the group’s policy is that to the extent 
that executive directors receive salary which
is not pensionable on a tax approved basis
they are paid a cash allowance calculated as
a percentage of base salary from which they
make their own pension arrangements 
details of the accrued pension benefits for
those executive directors who participate in
the group scheme are given on page 63
details of amounts paid in lieu of pensions
are included in ‘allowances’ in the table on 
page 60
service contracts
policy
the company’s policy is that contracts for
executive directors should be terminable by
the company on a maximum of one year’s
notice except in special circumstances 
and by the individual director on up to six
months’ notice in the event of early
termination of an executive director’s
contract the company’s policy is to take
legally appropriate mitigation factors into
account in determining the amount of
compensation payable to an executive
director
executive directors
all the executive directors have contracts
which are terminable by the company on
not more than one year’s notice and by the
individual director on six months’ notice 
as regards mitigation in a case where 
the company seeks early termination of 
the contract other than where summary
dismissal is appropriate the service
contracts for iain ferguson and stanley
musesengwa both signed in 2003 give 
the company the right but not the
obligation to pay in lieu of notice the salary
and contractual benefits which the director
would have received during the notice
period accordingly the company may 
elect to make a reduced payment under
those service contracts or require phased
payment so as to ensure the relevant
director fulfils his obligation to mitigate 
his losses
in the case of the older contracts of simon
gifford and stuart strathdee if the company
seeks early termination of the service
contract other than where summary
dismissal is appropriate the company 
is contractually obliged to provide
compensation to the director equivalent 
to the value of the salary and contractual
benefits which he would have received
during the notice period 
the details of the executive directors’ service
contracts as at 31 march 2006 are given in
the table below
chairman and nonexecutive directors
chairman
sir david lees was appointed nonexecutive
chairman on 1 october 1998 for an initial
period of three years this appointment 
was extended by the board upon the
recommendation of the nominations
committee until 30 september 2002 
and continues thereafter terminable by the
company or sir david on not less than 
one year’s notice his fees which are
reviewed annually are determined by the
remuneration committee in consultation
with the chief executive following the 
most recent review on 1 october 2005 
the remuneration committee approved an
increase in the chairman’s fee to £292500
2005 – £272500
directors’ remuneration report continued
date of service unexpired notice
director note contract term period
iain ferguson 1 15 april 2003 52 weeks 52 weeks
simon gifford 2 26 february 1996 26 weeks 26 weeks
stanley musesengwa 1 4 june 2003 52 weeks 52 weeks
stuart strathdee 2 1 november 1995 52 weeks 52 weeks
1 in the event of early termination of the director’s service contract other than where summary dismissal is
appropriate the company has the right to pay in lieu of notice salary and contractual benefits which he or
she would have received during the relevant notice period
2 in the event of early termination of the director’s service contract other than where summary dismissal is
appropriate the company is liable to provide compensation to the director equivalent to the value of the
salary and contractual benefits which he or she would have received during the relevant notice period nonexecutive directors
the company’s policy is that the fees 
of nonexecutive directors which are
determined by the board are set at a 
level which will attract individuals with the
necessary experience and ability to make 
a substantial contribution to the group’s
affairs the fees paid are commensurate with
those paid by other uk listed companies 
the nonexecutive directors do not
participate in the group’s incentive or
pension schemes nor do they receive other
benefits except as described below the
nonexecutive directors do not have service
contracts or notice periods but under the
terms of their appointment they are usually
expected to serve on the board for between
three and nine years with a review every
three years subject to their reelection by
shareholders in general meeting during the
year on the recommendation of the
nominations committee and following a
rigorous review the board extended the
terms of appointment for both richard
delbridge and evert henkes for a further
threeyear term nonexecutive directors
have no right to compensation on the early
termination of their appointment 
the fees received by the nonexecutive
directors are determined by the board 
and are reviewed annually in addition to 
the basic fee for each nonexecutive 
director and the senior independent director
supplements are paid to the chairmen of 
the audit and remuneration committees 
to reflect the extra responsibilities attached
to these positions a supplement is also 
paid to dr barry zoumas for chairing the
newly formed tate  lyle research advisory
group the most recent review of non
executive directors’ fees occurred on 1 april
2006 the fees are shown in the table below
as referred to on page 49 carole piwnica
has a consultancy agreement with the group
which was entered into on 14 august 2000
this agreement was for an initial threeyear
period and thereafter until terminated by
either party giving not less than 12 months’
written notice in recognition of her
consultancy services she holds the 
position of ‘nonexecutive vicechairman
government affairs’ for tate  lyle and is
paid a fee of €321000 £218933 per
annum this consultancy agreement will
cease immediately following carole piwnica’s
retirement from the board at the 2006 agm
no compensation in lieu of notice will be
paid in respect of the cessation of this
contract
total shareholder return performance
broad equity market index
the graph below as required under
schedule 7a of the act illustrates the
cumulative total shareholder return or tsr
performance share price growth plus
reinvested dividends of tate  lyle plc
against a ‘broad equity market index’ over
the past five years the ftse 100 index is
considered to be the most appropriate 
march0203040506
tate  lyle 5year cumulative total
shareholder return
value of £100 invested in tate  lyle and the
ftse 100 on 31 march 2001
400
300
350
250
200
150
100
50
0
£
tate  lyle
ftse 100 index
tate  lyle annual report 2006   59
as at as at 
basic fee 1 april 2006 1 april 2005
nonexecutive director £43500 £41000
senior independent director £50000 £47500
as at as at 
supplements 1 april 2006 1 april 2005
chairman of audit committee £13000 £10000
chairman of remuneration committee £6500 £5500
chairman of research advisory group £20000 –
benchmark for this purpose as the company
is currently a constituent of this index and
during the relevant period it has remained in
or just outside the uk’s top 100 companies
by market capitalisation the graph shows
the tsr for the ftse 100 index and 
tate  lyle in the five years from 
31 march 2001
2003 psp award tsr performance
as shown in the table below for the
performance period from 1 april 2003 to 
31 march 2006 in relation to the psp award
in june 2003 tate  lyle’s share price
growth and dividend yields resulted in a 
tsr that ranked tate  lyle at 21st position 
70th percentile in the comparator group of
companies this is between the median and
upper quartile performance at which level
the performance condition specifies that
84 of the conditional award made in 2003
converts into a deferred right to acquire 
tate  lyle shares subject to the rules 
of the psp  deferred shares will become 
eligible for release at the end of the 
oneyear retention period
the performance condition also specifies
that before any deferred shares can be
released the committee must be satisfied
that the underlying financial performance 
of tate  lyle over the performance period
justifies the participants receiving their
shares for the shares awarded in 2003
under the psp  the committee considers 
the underlying financial performance of 
tate  lyle over the performance period does
justify the participants receiving their shares
bottom
quartile
third
quartile
second
quartile
top
quartile
source kepler associates
each bar in the chart represents a company in the 
comparator group
2003 psp award total shareholder return
tate  lyle and comparator group from 
1 april 2003 to 31 march 2006
300
350
250
200
150
100
50
0
50

tate  lyle 60 tate  lyle annual report 2006
directors’ emoluments
the following table shows the emoluments of the directors of tate  lyle plc for the year ended 31 march 2006
total total
year to year to
salary annual31 march 31 march
and fees benefits
1
allowances
2
bonus 2006 2005
£000 £000 £000 £000 £000 £000
chairman
sir david lees 283 23 – – 306 283
executive directors
iain ferguson 628 18 264 521 1 431 1 434
simon gifford 447 13 – 335 795 774
stanley musesengwa 447 13 176 335 971 936
stuart strathdee 305 13 – 228 546 486
nonexecutive directors
richard delbridge 58 – – – 58 52
evert henkes 45 – – – 45 38
kai nargolwala 41 – – – 41 13
carole piwnica
3
260 – – – 260 257
robert walker
4
10 – – – 10 –
dr barry zoumas
5
56 – – – 56 –
former nonexecutive directors
allen yurko
6
16 – – – 16 42
directors who retired before 31 march 2005 ––––– 74
totals 2 596 80 440 1 419 4 535 4 389
1 benefits for the chairman and the executive directors include the provision of a car or cash allowance in lieu other benefits for the executive directors incude health
insurance and premiums on life assurance policies where not provided by pension benefit plans
2 allowances comprise payments made to iain ferguson and stanley musesengwa in lieu of pension calculated as a percentage of base salary from which they make
their own pension arrangements further details are set out in the section on directors’ pension provision on page 63 and in relation to life assurance policies where
not provided by pension benefit plans
3 carole piwnica’s total salary is made up of her fee of £41000 2005 – £38000 for serving as a nonexecutive director of tate  lyle and €321000 £218933
2005 – €321000 £218894 paid to her under her consultancy agreement with the group the details of which are given on page 59
4 robert walker was appointed to the board from 1 january 2006
5 dr barry zoumas was appointed to the board from 1 may 2005
6 allen yurko retired from the board on 28 july 2005
directors’ remuneration report continued tate  lyle annual report 2006   61
directors’ longterm incentives
i performance share plan
conditional rights to tate  lyle plc ordinary shares under the performance share plan held by directors at 1 april 2005 and 31 march 2006
together with awards made during the year were as follows
awards held at awards made awards held at earliest latest
director 1 april 2005 during the year 31 march 2006 performance period exercise date exercise date
iain ferguson 175 159 – 175 159 010403 – 310306 010407 310313
192 401 – 192 401 010404 – 310307 010408 310314
– 199 508 199 508 010405 – 310308 010409 310315
367 560 199 508 567 068
simon gifford 96 736 – 96 736 010403 – 310306 010407 310313
137 779 – 137 779 010404 – 310307 010408 310314
– 118 339 118 339 010405 – 310308 010409 310315
234 515 118 339 352 854
stanley musesengwa 95 541 – 95 541 010403 – 310306 010407 310313
137 779 – 137 779 010404 – 310307 010408 310314
– 118 339 118 339 010405 – 310308 010409 310315
233 320 118 339 351 659
stuart strathdee 59 713 – 59 713 010403 – 310306 010407 310313
91 309 – 91 309 010404 – 310307 010408 310314
– 80 745 80 745 010405 – 310308 010409 310315
151 022 80 745 231 767
1 the awards shown in the table are the maximum amount of shares that can vest under the performance condition
2 the performance condition attached to the awards are described on page 56 tsr relative to a comparator group of companies
3 no shares vested lapsed or were released during the year
4 as at 31 march 2006 no directors held any deferred rights over tate  lyle plc ordinary shares under the psp  as described on page 59 following the end of the
financial year 84 of the conditional award made in 2003 was converted into a deferred right to acquire the relevant number of tate  lyle shares subject to the rules of
the psp  these deferred shares will become eligible for release at the end of the oneyear retention period
5 awards take the form of nil cost options 
6 the closing midmarket price on the date of the award during the year was 4865p
ii deferred bonus share plan
conditional rights to receive matching shares over tate  lyle plc ordinary shares under the deferred bonus share plan held by directors at
1 april 2005 and 31 march 2006 together with awards made during the year were as follows
maximum maximum
shares shares matching matching
acquired with acquired with shares on shares on
net bonus at net bonus at gross bonus at gross bonus at
director 1 april 2005 31 march 2006 1 april 2005 31 march 2006
1
iain ferguson – 37 927 – 128 566
stanley musesengwa – 21 728 – 73 654
stuart strathdee – 6 300 – 21 356
1 the awards shown are the maximum amount of shares that could be awarded under the performance condition
2 the performance condition is described on page 56 tsr relative to a comparator group of companies andor the satisfaction of employment conditions
3 no awards vested or lapsed during the year
4 the closing midmarket price on the date of award during the year was 455p
5 the performance period for the award made during the year is from 1 april 2005 to 31 march 2008 62 tate  lyle annual report 2006
iii share option schemes
options over tate  lyle plc ordinary shares granted under the 1992 executive share option scheme the 2000 executive share option
scheme and the sharesave scheme and held by directors at 1 april 2005 and 31 march 2006 were as follows
market price on exercise
at 1 april date of exercise at 31 march price earliest latest
director 2005 exercised pence 2006 pence exercise date exercise date notes
iain ferguson 245 718 – – 245 718 33575 180606 170613 5
272 307 – – 272 307 325 180607 170614 6
6 032 – – 6 032 264 010808 310109 7
524 057 – 524 057
simon gifford 13 500 13 500 500 – 463 – – 1
20 000 20 000 500 – 473 – – 1
30 000 – – 30 000 483 291199 281106 1
46 912 – – 46 912 47050 281100 271107 1
68 175 – – 68 175 336 171201 161208 1
46 357 – – 46 357 42825 011202 301109 1
14 945 – – 14 945 274 120603 110610 1
134 378 – – 134 378 29350 050803 040810 2
139 860 – – 139 860 286 150604 140611 3
152 202 – – 152 202 37450 170605 160612 4
120 625 – – 120 625 33575 180606 170613 5
130 000 – – 130 000 325 180607 170614 6
9 271 9 271 597 – 182 – – 7
926 225 42 771 883 454
stanley musesengwa 15 000 15 000 500 – 463 – – 1
7 500 – – 7 500 483 291199 281106 1
3 460 – – 3 460 47050 281100 271107 1
21 454 – – 21 454 42825 011202 301109 1
88 117 – – 88 117 37450 170605 160612 4
119 136 – – 119 136 33575 180606 170613 5
130 000 – – 130 000 325 180607 170614 6
2 310 – – 2 310 410 010308 310808 7
386 977 15 000 371 977
stuart strathdee 40 000 40 000 490 – 463 – – 1
10 000 – – 10 000 483 291199 281106 1
4 500 – – 4 500 47050 281100 271107 1
23 939 – – 23 939 336 171201 161208 1
16 110 – – 16 110 42825 011202 301109 1
98 126 – – 98 126 29350 050803 040810 2
94 125 – – 94 125 37450 170605 160612 4
55 845 – – 55 845 33575 180606 170613 5
86 153 – – 86 153 325 180607 170614 6
625 625 457 – 304 – – 7
2 838 – – 2 838 260 010307 310807 7
432 261 40 625 391 636
1 granted under the 1992 scheme with an eps growth performance condition attached described on page 57 which has been met these options are exercisable
2 granted in 2000 under the 2000 scheme with an eps growth performance condition attached see page 57 the performance condition attached to 50 of these
options was met following the retest from a fixed base in 2005 the performance condition attached to the remaining 50 of these options was met at the retest in
2006 from a fixed base all these options are now exercisable
3 granted in 2001 under the 2000 scheme with an eps growth performance condition attached see page 57 which has been met these options are exercisable
4 granted in 2002 under the 2000 scheme with an eps growth performance condition attached see page 57 which has been met these options are exercisable
5 granted in 2003 under the 2000 scheme with an eps growth performance condition attached see page 57 the performance condition attached to these options
was met at its first test and will be exercisable from 18 june 2006
6 granted in 2004 under the 2000 scheme with an eps growth performance condition attached see page 57 these options are not exercisable as they are less than
three years old
7 options held granted or exercised under the sharesave scheme as this is an allemployee share scheme no performance conditions are attached
8 no options were granted or lapsed during the year under the 2000 scheme the 1992 scheme and the sharesave scheme
the aggregate of the theoretical gain made by directors on the exercise of options during the year was £66176 2005 – £513118 this is
calculated by reference to the difference between the closing midmarket price of the shares on the date of the exercise and the exercise price
of the options disregarding whether such shares were sold or retained on exercise and is stated before tax the market price of the
company’s ordinary shares at the close of business on 31 march 2006 was 571p and the range during the year to 31 march 2006 was
44975p to 6165p
directors’ remuneration report continued tate  lyle annual report 2006   63
directors’ pension provision
iain ferguson is not a member of the tate  lyle group pension scheme group scheme and accordingly accrues no pension benefit
stanley musesengwa is a member of the group scheme but for the year ended 31 march 2006 his pension benefit as detailed in the 
table below only relates to that part of his salary up to the uk statutory earnings cap £105600 per annum for the 200506 tax year 
in accordance with the company’s policy because iain ferguson and stanley musesengwa receive salary which is not pensionable on 
a tax approved basis they are paid cash allowances in lieu of pension calculated as a percentage of base salary from which they make 
their own pension arrangements the amounts paid during the year are included in ‘allowances’ in the table on page 60
in light of changes to the taxation of uk pension benefits effective from 6 april 2006 benefits accrued by stanley musesengwa in respect 
of service after that date are no longer subject to a cap on pensionable earnings as a consequence from 6 april 2006 the cash allowance 
in lieu of pension previously paid to him ceased a cap will continue to apply to benefits accrued in respect of his service prior to 6 april 2006
during the year simon gifford elected to transfer his benefits out of the group scheme and as a result at 31 march 2006 he was no longer
entitled to a benefit from the group scheme the cash equivalent transfer value paid in respect of his benefits excluding additional voluntary
contributions amounted to £3716000 for comparison purposes the transfer value of his benefits in the group scheme at 1 april 2005 
was £3034000
the information below sets out the disclosures required under both the listing rules of the uk listing authority and schedule 7a of the
companies act 1985
defined benefit schemes
accumulated increase in transfer value transfer value 
total accrued increase in accrued pension of increase in of accrued transfer value of increase in
age at pension at accrued pension during the year accrued pension pension at accrued pension transfer value
31 march yearend
1
during the year
2
net of inflation
3
net of inflation
4
start of year
5
at yearend
6
for the year
7
director 2006 £000 £000 £000 £000 £000 £000 £000
stanley musesengwa 53 22 4 4 60 260 360 100
stuart strathdee 54 193 22 17 311 2 730 3 449 719
1 the figure shown represents the amount of pension benefits based on service pensionable earnings and where appropriate transferred pension rights which would
have been preserved for each director had he left service on 31 march 2006
2 for each director the figure represents the difference between the accrued pension at 31 march 2006 and the corresponding pension a year earlier no allowance 
is made for inflation
3 for each director the figure represents the difference between the accrued pension at 31 march 2006 and the corresponding pension a year earlier the figures
quoted include an adjustment for inflation in accordance with the listing rules of the uk listing authority
4 the figures shown represent the transfer value calculated in accordance with guidance note 11 issued by the faculty and institute of actuaries of the inflation
adjusted increase in the total accrued pension for the year
5 the figures shown represent the transfer value calculated in accordance with guidance note 11 issued by the institute and faculty of actuaries of the accumulated
total accrued pension at 31 march 2005
6 the figures shown represent the transfer value calculated in accordance with guidance note 11 issued by the institute and faculty of actuaries of the accumulated
total accrued pension at 31 march 2006
7 the figures shown represent the increase in the transfer values from 31 march 2005 to 31 march 2006 the transfer values quoted have been calculated using the
actuarial bases which applied at each reporting date 64 tate  lyle annual report 2006
directors’ interests in tate  lyle shares
ordinary shares
at 31 march at 1 april
2006 2005
richard delbridge 30 000 30 000
iain ferguson
1
42 927 5 000
simon gifford 26 123 76 589
evert henkes 1 000 –
sir david lees 40 000 35 000
stanley musesengwa
1
61 241 39 051
kai nargolwala 5 000 –
carole piwnica 6 612 6 612
stuart strathdee
1
81 640 73 086
robert walker – –
dr barry zoumas 1 000 –
1 the number of shares shown as at 31 march 2006 for iain ferguson stanley musesengwa and stuart strathdee include shares purchased during the year in relation
to the deferred bonus share plan as detailed in the table on page 61
2 all the above interests are beneficially held
3 there were no changes in directors’ interests in the period from 1 april 2006 to 24 may 2006
4 no director had interests in any class of shares other than ordinary shares
5 the register of directors’ interests which is open to inspection contains full details of directors’ shareholdings and options to subscribe for shares
dilution
in order to satisfy options granted under the 1992 executive share option scheme which was closed in july 2000 and the uk allemployee
sharesave scheme the company issues new shares in the tenyear period to 31 march 2006 awards made under the company’s share
schemes represented 29 2005 – 29 of the company’s issued ordinary share capital leaving an available dilution headroom of 71
2005 – 71
employee benefit trust
the group has an employee benefit trust which is administered by an independent trustee and which holds ordinary shares in the company
to meet the various obligations under the group’s longterm incentive plans granted since august 2000 the trust held 11533914 ordinary
shares at 1 april 2005 and 9028813 ordinary shares at 31 march 2006
iain ferguson simon gifford stanley musesengwa and stuart strathdee together with all employees are potential beneficiaries of the trust
and are deemed to be interested in all the shares held in the trust
on behalf of the board
robert gibber
company secretary
24 may 2006
directors’ remuneration report continued tate  lyle annual report 2006   65
66 independent auditors’ report to the
members of tate  lyle plc
group financial statements
67 consolidated income statement
68 consolidated statement of
recognised income and expense
69 consolidated balance sheet 
70 consolidated cash flow statement
71 notes to the consolidated financial
statements
1 presentation of financial
statements
2 group accounting policies 
3 critical accounting estimates 
and judgements
4 segment information
5 sales
6 operating profit
7 auditors’ remuneration
8 exceptional items
9 staff costs
10 interest income and finance
expense
11 income tax expense
12 earnings per share
13 dividends
14 intangible assets
15 property plant and equipment
16 investments in associates joint
ventures
17 availableforsale financial assets
18 derivative financial instruments
19 inventories
20 trade and other receivables
21 share capital and share premium
22 consolidated statement of
changes in shareholders’ equity
23 other reserves
24 sharebased payments
25 trade and other payables
26 borrowings
27 deferred tax 
28 retirement benefit obligations
29 provisions for other liabilities 
and charges
30 change in working capital
31 cash and cash equivalents
32 net debt
33 contingent liabilities
34 commitments
35 acquisitions
36 post balance sheet events
37 related party disclosures
38 foreign exchange rates
39 main subsidiaries and
investments
40 adoption of international
financial reporting standards
41 adoption of ias32 and ias39
124 independent auditors’ report 
to the members of tate  lyle plc
parent company financial
statements
125 parent company balance sheet
126 notes to the parent company
financial statements
1 parent company accounting
policies
2 intangible fixed assets
3 tangible fixed assets
4 investments in subsidiary
undertakings
5 debtors
6 creditors – due within one year
7 creditors – due after more than
one year
8 deferred taxation
9 provisions for liabilities and
charges
10 contingent liabilities
11 financial commitments
12 share capital
13 reconciliation of movements in
shareholders’ funds
14 prior year adjustments
15 related parties 
16 profit and loss account
disclosures
17 dividends
index to the financial statements 
for the year to 31 march 2006 66 tate  lyle annual report 2006
we have audited the group financial
statements of tate  lyle plc for the year
ended 31 march 2006 which comprise 
the consolidated income statement the
consolidated statement of recognised
income and expense the consolidated
balance sheet the consolidated cash 
flow statement and the notes to the
consolidated financial statements 
these group financial statements have 
been prepared under the accounting 
policies set out therein
we have reported separately on the parent
company financial statements of tate  lyle
plc for the year ended 31 march 2006 
and on the information in the directors’
remuneration report that is described 
as having been audited
respective responsibilities of directors
and auditors
the directors’ responsibilities for preparing
the annual report and the group financial
statements in accordance with applicable
law and international financial reporting
standards ifrss as adopted by the
european union are set out in the 
statement of directors’ responsibilities
our responsibility is to audit the group
financial statements in accordance with
relevant legal and regulatory requirements
and international standards on auditing 
uk and ireland this report including the
opinion has been prepared for and only 
for the company’s members as a body 
in accordance with section 235 of the
companies act 1985 and for no other
purpose we do not in giving this opinion
accept or assume responsibility for any other
purpose or to any other person to whom this
report is shown or into whose hands it may
come save where expressly agreed by our
prior consent in writing
we report to you our opinion as to whether
the group financial statements give a true
and fair view and whether the group
financial statements have been properly
prepared in accordance with the companies
act 1985 and article 4 of the ias regulation
we also report to you as to whether in 
our opinion the information given in the
directors’ report is consistent with the
group financial statements the information
given in the directors’ report includes 
that specific information presented in the
operating and financial review that is cross
referred from the business review section of
the directors’ report we also report to you
if in our opinion we have not received all the
information and explanations we require 
for our audit or if information specified by
law regarding directors’ remuneration and
other transactions is not disclosed
we review whether the corporate
governance statement reflects the
company’s compliance with the nine
provisions of the 2003 frc combined code
specified for our review by the listing rules
of the financial services authority and we
report if it does not we are not required 
to consider whether the board’s statements
on internal control cover all risks and
controls or form an opinion on the
effectiveness of the group’s corporate
governance procedures or its risk and
control procedures
we read other information contained in 
the annual report and consider whether it 
is consistent with the audited group financial
statements the other information comprises
only the directors’ report the chairman’s
statement the chief executive’s review 
the operating and financial review the
remuneration report and the corporate
governance statement we consider the
implications for our report if we become
aware of any apparent misstatements or
material inconsistencies with the group
financial statements our responsibilities 
do not extend to any other information
basis of audit opinion
we conducted our audit in accordance 
with international standards on auditing uk
and ireland issued by the auditing practices
board an audit includes examination 
on a test basis of evidence relevant to 
the amounts and disclosures in the group
financial statements it also includes an
assessment of the significant estimates 
and judgements made by the directors 
in the preparation of the group financial
statements and of whether the accounting
policies are appropriate to the group’s
circumstances consistently applied and
adequately disclosed
we planned and performed our audit so as
to obtain all the information and explanations
which we considered necessary in order to
provide us with sufficient evidence to give
reasonable assurance that the group
financial statements are free from material
misstatement whether caused by fraud or
other irregularity or error in forming our
opinion we also evaluated the overall
adequacy of the presentation of information
in the group financial statements
opinion
in our opinion
■ the group financial statements give a true
and fair view in accordance with ifrss
as adopted by the european union of
the state of the group’s affairs as at 
31 march 2006 and of its loss and cash
flows for the year then ended 
■ the group financial statements have been
properly prepared in accordance with the
companies act 1985 and article 4 of the
ias regulation and
■ the information given in the directors’
report is consistent with the financial
statements
pricewaterhousecoopers llp
chartered accountants and 
registered auditors
1 embankment place
london wc2n 6rh
24 may 2006
independent auditors’ report to the members 
of tate  lyle plc tate  lyle annual report 2006   67
year to 31 march
2006 2005
notes £m £m
sales 5 3 720 3 339
operating profit 6 75 229
interest income 10 45 34
finance expense 10 78 58
profit before tax 42 205
income tax expense 11 69 55
lossprofit for the year 27 150
lossprofit for the year attributable to
equity holders of the company 30 146
minority interests 3 4
27 150
pence pence
lossearnings per share attributable to the equity holders of the company 12
basic 63 310
diluted 63 306
dividends per share 13
interim paid 59 57
final proposed 141 137
200 194
all activities relate to continuing operations
analysis of profit before tax £m £m
profit before tax 42 205
add back
exceptional items 8 248 45
amortisation of acquired intangible assets 14 5 4
profit before tax exceptional items and amortisation of acquired intangible assets 295 254
the notes on pages 71 to 123 form part of these group financial statements
consolidated income statement 68 tate  lyle annual report 2006
year to 31 march
2006 2005
notes £m £m
net exchange differences arising on consolidation 23 1
employee postemployment benefits
– net actuarial gainslosses in postemployment benefit plans note 28 40 19
– deferred taxation recognised directly in equity 12 5
net valuation losses on availableforsale financial assets 1 –
net loss on cash flow hedges 3 –
net profitloss recognised directly in equity 22 47 13
lossprofit for the year 27 150
total recognised income and expense for the year 20 137
adoption of ias32 and ias39 41 7 –
27 137
attributable to
equity holders of the parent 24 133
minority interests 3 4
27 137
the notes on pages 71 to 123 form part of these group financial statements
consolidated statement of 
recognised income and expense tate  lyle annual report 2006   69
31 march 31 march
2006 2005
notes £m £m
assets
noncurrent assets
intangible assets 14 263 194
property plant and equipment 15 1 209 1 264
investments in associates 16 4 3
availableforsale financial assets 17 17 –
derivative financial instruments 18 28 –
deferred tax assets 27 7 –
trade and other receivables 20 8 13
other noncurrent assets 41 – 16
1 536 1 490
current assets
inventories 19 456 372
trade and other receivables 20 482 410
current tax assets 32 8
derivative financial instruments 18 282 –
cash and cash equivalents 31 158 384
current asset investments 41 – 1
1 410 1 175
total assets 2 946 2 665
shareholders’ equity
capital and reserves attributable to the company’s equity holders 
share capital 21 122 124
share premium 21 400 393
other reserves 23 56 110
retained earnings 22 327 324
905 951
minority interest 22 35 32
total shareholders’ equity 22 940 983
liabilities
noncurrent liabilities
trade and other payables 25 3 8
borrowings 26 537 788
derivative financial instruments 18 28 –
deferred tax liabilities 27 60 29
retirement benefit obligations 28 172 244
provisions for other liabilities and charges 29 71 89
871 1 158
current liabilities
trade and other payables 25 382 404
current tax liabilities 30 23
borrowings and bank overdrafts 26 491 68
derivative financial instruments 18 202 –
provisions for other liabilities and charges 29 30 29
1 135 524
total liabilities 2 006 1 682
total shareholders’ equity and liabilities 2 946 2 665
the group financial statements were approved by the board of directors on 24 may 2006 and signed on its behalf by
sir david lees iain ferguson simon gifford directors
the notes on pages 71 to 123 form part of these group financial statements
consolidated balance sheet 70 tate  lyle annual report 2006
year to 31 march
2006 2005
notes £m £m
cash flows from operating activities
profit before tax 42 205
adjustments for
depreciation and impairment of property plant and equipment 15 125 127
noncash exceptional items 8 248 10
amortisation of intangible assets 14 8 5
sharebased payments 24 5 4
interest income 10 45 34
finance expense 10 78 58
change in working capital 30 211 38
cash generated from operations 250 317
interest paid 65 42
income tax paid 98 84
net cash generated from operating activities 87 191
cash flows from investing activities
proceeds on disposal of property plant and equipment 4 4
proceeds on disposal of noncurrent asset investments – 21
proceeds on disposal of current asset investments – 13
interest received 38 21
acquisitions of subsidiaries net of cash and cash equivalents acquired 69 73
purchases of property plant and equipment 273 141
purchases of intangible assets and other noncurrent assets 2 1
net cash flows used in investing activities 302 156
cash flows from financing activities
proceeds from issuance of ordinary shares 16 16
increase in borrowings 78 258
cash paid to acquire own shares – 6
dividends paid to minority shareholders of subsidiaries – 1
dividends paid to the company’s equity holders 93 89
net cash flows from financing activities 1 178
net decreaseincrease in cash and cash equivalents 214 213
cash and cash equivalents
at beginning of year 384 157
impact of ias3239 adoption 41 9 –
restated 375 157
effect of changes in foreign exchange rates 3 14
net decreaseincrease in cash and cash equivalents 214 213
at end of year 31 158 384
the notes on pages 71 to 123 form part of these group financial statements
consolidated cash flow statement  tate  lyle annual report 2006   71
notes to the consolidated financial statements 
1 presentation of financial statements
general information
the principal activities of tate  lyle plc are the development manufacture and marketing of food and industrial ingredients that have been
made from renewable resources the group operates more than 65 production facilities in 29 countries and in numerous partnerships and
joint ventures located predominantly in europe the americas and in south east asia 
the company is a public limited company incorporated and domiciled in the united kingdom the company has its primary listing on the
london stock exchange
basis of preparation
these consolidated financial statements are presented for the first time on the basis of international financial reporting standards ‘ifrs’
adopted by the european union and have been prepared in accordance with the listing rules of the uk financial services authority and 
the companies act 1985 as applicable to companies reporting under ifrs 
until 31 march 2005 the consolidated financial statements of the group had been prepared in accordance with the companies act 1985 
and applicable united kingdom accounting standards ‘uk gaap’ uk gaap differs in certain respects from ifrs when preparing the
group’s consolidated financial statements management has amended certain accounting valuation and consolidation methods applied in 
the uk gaap financial statements to comply with ifrs to explain how the group’s reported financial performance and position are affected
by these changes restatements and explanations are included in notes 40 and 41 
with the exception of the adoption on 1 april 2005 of ias32 financial instruments disclosure and presentation and ias39 financial
instruments recognition and measurement the consolidated comparative information in respect of the year to 31 march 2005 has also been
restated to reflect these adjustments the effects of the adoption of ias32 and ias39 on the group’s equity as at 1 april 2005 are described
in note 41 the accounting policies summarised in note 2 have been applied in the preparation of these consolidated financial statements in 
all periods presented except where noted below 
the following ifrss international financial reporting and interpretations committee ‘ifrics’ requirements and amendments thereto have
been adopted earlier than required
■ december 2004 amendment to ias19 employee benefits permitting the recognition of actuarial gains and losses directly in equity 
from 1 april 2004
■ april 2005 amendment to ias39 financial instruments recognition and measurement concerning cash flow hedges of forecast 
intragroup transactions from 1 april 2005
■ june 2005 amendment to ias39 financial instruments recognition and measurement concerning the fair value option from 1 april 2005
these consolidated financial statements have been prepared under the historical cost convention except in respect of certain financial
instruments and commodities
these consolidated financial statements are presented in pounds sterling which is the group’s presentation currency
the preparation of financial statements in conformity with ifrs requires the use of certain critical accounting estimates it also requires management
to exercise its judgement in the process of applying the company’s accounting policies the areas involving a higher degree of judgement or
complexity and areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 3
the following ifrss and ifrics have been issued but have not been early adopted by the group
■ ifric4 determining whether an arrangement contains a lease effective from 1 april 2006 requires the determination of whether an
arrangement contains a lease the adoption is expected to result in the recognition of additional property plant and equipment and the
related payables the impact on the group’s financial statements is still under review
■ ifric7 applying the restatement approach effective from 1 april 2006 provides guidance on hyperinflation accounting the adoption is
not expected to have a material impact on the group’s financial statements
■ ifrs7 financial instruments disclosures effective from 1 april 2007 introduces new disclosures for financial instruments it replaces
requirements in ias32 financial instruments disclosure and presentation and will introduce additional disclosures in the group’s financial
statements for the year ended 31 march 2007
the parent company tate  lyle plc has not adopted ifrs as its statutory reporting basis audited financial statements for the parent
company prepared in accordance with uk gaap  are set out on pages 124 to 132 72 tate  lyle annual report 2006
notes to the consolidated financial statements 
continued
2 group accounting policies 
basis of consolidation
a subsidiaries
subsidiaries are all entities over which the group has the power to govern the financial and operating policies generally accompanying 
a shareholding of more than one half of the voting rights and taking into account the existence of potential voting rights subsidiaries are 
fully consolidated from the date on which control is transferred to the group they are deconsolidated from the date that control ceases 
the purchase method of accounting is used to account for the acquisition of subsidiaries by the group the recognised identifiable 
assets liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of acquisition the interest of minority
shareholders is stated at the minority’s proportion of the fair values of the identifiable assets liabilities and contingent liabilities recognised
where necessary adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those
used by the group all intercompany transactions and balances between group entities are eliminated on consolidation
b joint ventures
an entity is regarded as a joint venture if the group has joint control over its operating and financial policies the group’s interests in jointly
controlled entities are accounted for by proportionate consolidation whereby the group’s share of the joint ventures’ income and expenses
assets and liabilities and cash flows are combined on a linebyline basis with similar items in the group’s financial statements where
necessary adjustments are made to the financial statements of joint ventures to bring the accounting policies used into line with those used
by the group the group recognises the portion of gains or losses on the sale of assets to the joint venture that is attributable to the other
venturers the group does not recognise its share of profits or losses from the joint venture that result from the group’s purchase of assets
from the joint venture until it resells the assets to an external entity 
c associates
an entity is regarded as an associate if the group has significant influence but not control over its operating and financial policies significant
influence generally exists where the group holds more than 20 and less than 50 of the shareholders’ voting rights associates are
accounted for under the equity method whereby the group’s income statement includes its share of their profits and losses and the group’s
balance sheet includes its share of their net assets where necessary adjustments are made to the financial statements of associates to bring
the accounting policies used into line with those used by the group when the group’s share of losses in an associate equals or exceeds its
interest in the associate including any other unsecured receivables the group does not recognise further losses unless it has incurred
obligations or made payments on behalf of the associate 
foreign currency translation
a functional and presentation currency
items included in the financial statements of each of the group’s entities are measured using the currency of the primary economic
environment in which the entity operates the ‘functional currency’ the consolidated financial statements are presented in pounds sterling
which is its presentation currency
b transactions and balances
foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions
foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period end exchange rates 
of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement except when deferred in equity 
as qualifying cash flow hedges and qualifying net investment hedges
c group entities
from 1 april 2004 the results and financial position of all the group’s entities that have a functional currency different from the presentation
currency are translated into the presentation currency as follows
i assets and liabilities including goodwill and fair value adjustments for each balance sheet presented are translated at the closing rate 
at the date of that balance sheet
ii income and expenses for each income statement are translated at average exchange rates as a reasonable approximation to the rates
prevailing on the transaction dates and
iii all resulting exchange differences are recognised as a separate component of equity
prior to 1 april 2004 exchange differences were recognised in retained earnings tate  lyle annual report 2006   73
2 group accounting policies continued
on consolidation exchange differences arising from the translation of the net investment in foreign entities and of borrowings and other
currency instruments designated as hedges of such investments are taken to equity
when a foreign operation is sold such exchange differences that have accumulated since 1 april 2004 are recognised in the income
statement as part of the gain or loss on sale
property plant and equipment
land and buildings comprise mainly manufacturing sites and administrative facilities certain items of land and buildings are carried 
at amounts based upon valuations recognised in accordance with uk gaap prior to the group’s adoption of ifrs
all other property plant and equipment is stated at historical cost less depreciation and impairment historical cost includes expenditure 
that is directly attributable to the acquisition of the items subsequent costs are included in the asset’s carrying amount or recognised as a
separate asset as appropriate only when it is probable that future economic benefits associated with the expenditure will flow to the group
and the cost of the item can be measured reliably all repairs and maintenance expenditures are charged to the income statement during the
financial period in which they are incurred
depreciation is calculated using the straightline method to allocate the cost or revalued amount of each asset to its residual value over 
its useful economic life as follows
freehold land no depreciation
freehold buildings 20 to 50 years
leasehold property period of the lease
bulk liquid storage tanks 12 to 20 years
plant and machinery 3 to 28 years
the assets’ residual values and useful lives are reviewed at each balance sheet date and adjusted if appropriate an asset’s carrying amount
is written down immediately to its recoverable amount if the asset’s carrying amount is greater that its estimated recoverable amount
gains and losses on disposals are determined by comparing the disposal proceeds with the carrying amount and are included in the income
statement
borrowing costs directly attributable to the construction of property plant and equipment are capitalised as part of the cost of those assets
leased assets
leases of property plant and equipment where the group assumes substantially all the risks and rewards of ownership are classified 
as finance leases assets held under finance leases are capitalised at the lower of the fair value of the leased asset and the present value 
of the minimum lease payments the corresponding leasing commitments net of finance charges are included in liabilities
leasing payments are analysed between capital and interest components so that the interest element is charged to the income statement
over the period of the lease at a constant periodic rate of interest on the remaining balance of the liability outstanding
depreciation on assets held under finance leases is charged to the income statement
all other leases are treated as operating leases with annual rentals charged to the income statement net of any incentives granted to the
lessee over the term of the lease
intangible assets
a goodwill
goodwill is calculated as the difference between the fair value of the consideration exchanged including directly attributable acquisition 
costs and the net fair values of the identifiable assets and liabilities acquired and is capitalised goodwill is tested for impairment annually 
and whenever there is an indication of impairment and is carried at cost less accumulated impairment losses
where the acquired interest in the net fair value of the identifiable assets and liabilities exceeds the cost of the business combination 
the excess is recognised immediately in the income statement
contingent receipts represent amounts receivable under the terms of the 2004 realignment of the sucralose business and are deducted 
from the related goodwill when such goodwill is eliminated receipts are recognised in the income statement
gains and losses on the disposal of a business component include the carrying amount of goodwill relating to the entity sold 74 tate  lyle annual report 2006
notes to the consolidated financial statements 
continued
2 group accounting policies continued
b patents and other intellectual property
patents and other intellectual property are shown at historical cost less accumulated amortisation and impairment losses where the assets
are acquired as part of a business combination historical cost is based on their fair values as at the date of the combination amortisation 
of the assets is recognised on a straightline basis over the period of their expected benefit
c other acquired intangible assets
other acquired intangible assets are intangible assets arising on consolidation of acquired businesses and include brands recipes customer
relationships and supplier networks amortisation of the assets is recognised on a straightline basis over the period of their expected benefit
d other intangible assets
other intangible assets mainly includes certain development expenditure and software costs costs incurred on development projects relating
to the design and testing of new or improved products are recognised as intangible assets when the ias38 recognition criteria are met
capitalised development costs are amortised from the commencement of the commercial production of the product on a straightline basis
over the period of its expected benefit research and other development expenditures are recognised as an expense as incurred
development costs previously recognised as an expense are not recognised as an asset in a subsequent period
impairment
assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment assets that are subject to
amortisation or depreciation are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amounts
may not be recoverable an impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable
amount the recoverable amount is the higher of an asset’s fair value less costs to sell and value in use for the purposes of assessing
impairment assets other than goodwill are grouped at the lowest levels for which there are separately identifiable cash inflows goodwill is
allocated to units representing the lowest level at which goodwill is monitored by the group’s board of directors for internal management
purposes further details are given in note 3
financial instruments
as explained in note 1 the group adopted ias32 and ias39 for the year ended 31 march 2006 onwards and elected not to restate
comparative information the accounting policies applied to the group’s financial instruments from 1 april 2005 are set out below prior to
adoption of ias32 and ias39 financial instruments were accounted for under uk gaap  the accounting policy previously applied under 
uk gaap is set out in note 41 which explains the impacts of the adoption of ias32 and ias39 on the group’s equity as at 1 april 2005
a availableforsale financial assets
equity instruments held by the group and designated as availableforsale are carried at fair value with movements in fair value recognised
directly in equity
b loans and receivables
noncurrent receivables and loans granted are carried at amortised cost less provisions for impairment movements in carrying value are
recognised in the income statement
c borrowings
borrowings are recognised initially at fair value net of transaction costs incurred borrowings are subsequently stated at amortised cost any
difference between the proceeds net of transaction costs and the redemption value is recognised in the income statement over the period 
of the borrowings using the effective interest method borrowings are classified as current liabilities unless the group has an unconditional 
right to defer settlement of the liability for at least 12 months after the balance sheet date
d commodity trading instruments
commodity instruments acquired for trading purposes are carried at fair value movements in fair value are recognised in the income
statement
e commodity and treasury hedging instruments
under ias39 hedging relationships are categorised by type and must meet strict criteria to qualify for hedge accounting
i cash flow hedges
hedges of firm commitments and highly probable forecast transactions including forecast intragroup transactions that are expected to
affect consolidated profit or loss are designated as cash flow hedges to the extent that movements in the fair values of these instruments
effectively offset the underlying risk being hedged they are recognised in the hedging reserve in equity until the period during which the
hedged forecast transaction affects profit or loss at which point the cumulative gain or loss is recognised in the income statement
offsetting the value of the hedged transaction tate  lyle annual report 2006   75
2 group accounting policies continued
ii fair value hedges
hedges against the movement in fair value of recognised assets and liabilities are designated as fair value hedges to the extent that
movements in the fair values of these instruments effectively offset the underlying risk being hedged they are recognised in the income
statement by offset against the hedged transaction
iii hedges of net investments
hedges of a net investment in a foreign operation are designated as net investment hedges to the extent that movements in the fair
values of these instruments effectively offset the underlying risk being hedged they are recognised in the translation reserve until the period
during which a foreign operation is disposed of or partially disposed of at which point the cumulative gain or loss is recognised in profit 
or loss offsetting the cumulative difference recognised on the translation of the net investment
hedge accounting is discontinued at the point when the hedging instrument no longer qualifies for hedge accounting in the case of cash flow
hedging relationships the cumulative movement in the fair value of the hedging instrument previously recognised in equity up to that point is
retained there until the forecast transaction affects profit or loss unless the hedged transaction is no longer expected to occur in which case
the cumulative movement in fair value is transferred to profit or loss immediately movements in the fair value of hedging instruments where the
instrument failed to meet the ias39 hedge accounting criteria or where the movement represents the ineffective portion of a qualifying hedging
relationship are recognised in the income statement immediately as other income and expense or net finance expense as appropriate
f embedded derivatives
where an embedded derivative is not closely related to the host contract and where the host contract itself is not already recognised at 
fair value movements in the fair value of the embedded derivative are separated from the associated transaction and except where the
embedded derivative is designated as a cash flow hedging instrument recognised in the income statement
g fair valuation
fair values are based on market values where they are available for unlisted securities the group establishes fair value using valuation
techniques these include the use of recent arm’s length transactions reference to other similar instruments and discounted cash flow analysis
inventories
except for those items noted below inventories are stated at the lower of cost and net realisable value cost comprises direct materials and
where applicable direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and
condition cost is calculated using the ‘first in – first out’ or weighted average cost methods appropriate to the materials and production
processes involved net realisable value represents the estimated selling price less all estimated costs to completion and costs to be incurred
in marketing selling and distribution
certain items of merchandisable agricultural commodities are stated at market value in line with regional industry accounting practices
cash and cash equivalents
cash and cash equivalents include cash in hand deposits held at call with banks other shortterm highly liquid investments with original
maturities of three months or less and bank overdrafts which are not considered to be borrowings in nature
share capital
ordinary shares are classified as equity incremental costs directly attributable to the issue of new shares or options are shown in equity 
as a deduction net of tax from the proceeds
where any group company purchases the company’s equity share capital and holds that share either directly as treasury shares or 
indirectly within an esop trust the consideration paid including any directly attributable incremental costs net of income taxes is deducted
from equity attributable to the company’s equity holders until the shares are cancelled reissued or disposed of where such shares are
subsequently sold or reissued any consideration received net of any directly attributable incremental transaction costs and the related 
income tax effects is included in equity attributable to the company’s equity holders these shares are used to satisfy share options granted
to employees under the group’s share option schemes the trustee purchases the company’s shares on the open market using loans made 
by the company or other loans guaranteed by the company 
provisions
provisions for liabilities and charges are recognised when the group has a present legal or constructive obligation as a result of past events
it is more likely than not that an outflow of resources will be required to settle the obligation and the amount can be reliably measured 
if the effect is material provisions are measured using expected future cash flows discounted at a pretax rate that reflects current market
assessments of the time value of money and where appropriate the risks specific to the liability
provisions are not recognised for future operating losses a provision for onerous contracts is recognised when the expected benefits 
to be derived by the group from a contract are lower than the unavoidable cost of meeting its obligations under the contract 76 tate  lyle annual report 2006
notes to the consolidated financial statements 
continued
2 group accounting policies continued
income taxes
the charge for current tax is based on the results for the year as adjusted for items which are nontaxable or disallowed it is calculated using
rates that have been enacted or substantively enacted by the balance sheet date
deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising from differences between the
carrying amount of assets and liabilities in the financial statements and the corresponding tax basis used in the computation of taxable profit
in principle deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that
it is probable that taxable profits will be available against which deductible temporary differences can be utilised such assets and liabilities are
not recognised if the temporary differences arise from goodwill or from the initial recognition other than in a business combination of other
assets and liabilities in a transaction which affects neither the tax profit nor the accounting profit
deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates and interests 
in joint ventures except where the group is able to control the reversal of the temporary difference and it is probable that the temporary
difference will not reverse in the foreseeable future
deferred tax is calculated using the enacted or substantively enacted rates that are expected to apply when the asset or liability is settled
deferred tax is charged or credited in the income statement except when it relates to items credited or charged directly to equity in which
case the deferred tax is also dealt with in equity
deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the group intends 
to settle its current tax assets and liabilities on a net basis
employee benefits
a pension obligations
group companies operate various pension schemes the schemes are generally funded through payments to insurance companies or trustee
payments to insurance companies or trusteeadministered funds determined by periodic actuarial calculations the group has both defined
benefit and defined contribution plans
a defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive on retirement usually
dependent on one or more factors such as age years of service and compensation
a defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity the group has no legal 
or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to
employee service in the current and prior periods
the amounts recognised in the balance sheet in respect of defined benefit pension plans are the difference between the present value of the
defined benefit obligation at the balance sheet date less the fair value of plan assets together with adjustments for actuarial gains or losses
and past service costs charged or credited to equity the defined benefit obligation is calculated annually by independent actuaries using 
the projected unit credit method the present value of the defined benefit obligation is determined by discounting the estimated future cash
outflows using interest rates of highquality corporate bonds that are denominated in the currency in which the benefits will be paid and that
have terms to maturity approximating to the terms of the related pension liability past service costs are recognised immediately in income
unless the changes to the pension plan are conditional on the employees remaining in service for a specified period of time the vesting
period in this case the past service costs are amortised on a straightline basis over the vesting period the group has elected to apply the
2004 amendment to ias19 employee benefits with effect from 1 april 2004 actuarial gains and losses arising from experience adjustments
and changes in actuarial assumptions are charged or credited to equity immediately
for defined contribution plans the group pays contributions to publicly or privately administered pension insurance plans on a mandatory
contractual or voluntary basis the group has no further payment obligations once the contributions have been paid the contributions are
recognised as employee benefit expense when they are due prepaid contributions are recognised as an asset to the extent that a cash
refund or a reduction in the future payments is available
b other postemployment obligations
some group companies provide postemployment healthcare benefits to their retirees the entitlement to these benefits is usually conditional
on the employee remaining in service up to retirement age and the completion of a minimum service period the expected costs of these
benefits are accrued over the period of employment using an accounting methodology similar to that for defined benefit pension plans
actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity
immediately these obligations are valued annually by independent qualified actuaries tate  lyle annual report 2006   77
2 group accounting policies continued
c sharebased compensation
the group operates a number of equitysettled sharebased compensation plans the fair value of employee services received in exchange
for the grant of the options is recognised as an expense the total amount to be expensed over the vesting period is determined by reference
to the fair value of the options granted excluding the impact of any nonmarket vesting conditions for example earnings targets nonmarket
vesting conditions are included in assumptions about the number of options that are expected to become exercisable at each balance sheet
date for options granted with nonmarket vesting conditions the entity revises its estimates of the number of options that are expected to
become exercisable it recognises the impact of the revision of original estimates if any in the income statement and a corresponding
adjustment to equity the proceeds received net of any directly attributable transaction costs are credited to share capital and share premium
when the options are exercised
revenue recognition
a sales of goods and services
sales comprise the amount receivable in the ordinary course of business net of value added and sales taxes for goods and services
provided sales are recognised at the point or points at which the group has performed its obligations in connection with the contractual
terms of the sales agreement and in exchange obtains the right to consideration
b interest income
interest income is recognised on a timeproportion basis using the effective interest method
c dividend income
dividend income is recognised when the right to receive payment is established
dividend distribution
a dividend distribution to the company’s equity holders is recognised as a liability in the group’s financial statements in the period in which 
the dividends are approved by the company’s shareholders or in the case of interim dividends by the board of directors
exceptional items
exceptional items comprise items of income and expense that are material in amount and unlikely to recur and which merit separate
disclosure in order to provide an understanding of the group’s underlying financial performance examples of events giving rise to the
disclosure of material items of income and expense as exceptional items include but are not limited to impairment events disposals 
of operations or individual assets litigation claims by or against the group and the restructuring of components of the group’s operations 78 tate  lyle annual report 2006
notes to the consolidated financial statements 
continued
3 critical accounting estimates and judgements 
in order to prepare these consolidated financial statements in accordance with the accounting policies set out in note 2 management has
used estimates and judgements to establish the amounts at which certain items are recorded critical accounting estimates and judgements
are those which have the greatest impact on the financial statements and require the most difficult subjective and complex judgements about
matters that are inherently uncertain estimates are based on factors including historical experience and expectations of future events that
management believe to be reasonable however given the judgemental nature of such estimates actual results could be different from the
assumptions used the critical accounting policies are set out below
impairment of assets
asset impairments have the potential to significantly impact income in order to determine whether impairments are required the group
estimates the recoverable amount of the asset this calculation is usually based on projecting future cash flows over a fiveyear period and using 
a terminal value to incorporate expectations of growth thereafter a discount factor is applied to obtain a current value ‘value in use’ the ‘fair
value less costs to sell’ of an asset is used if this results in an amount in excess of ‘value in use’
estimated future cash flows for impairment calculations are based on management’s expectations of future volumes and margins based on
plans and best estimates of the productivity of the assets in their current condition future cash flows therefore exclude benefits from major
expansion projects requiring future capital expenditure where that expenditure has not been approved at the balance sheet date
future cash flows are discounted using a discount rate based on the group’s weighted average cost of capital adjusted if appropriate for
circumstances specific to the asset being tested the weighted average cost of capital is impacted by estimates of interest rates equity returns
and market and country related risks the group’s weighted average cost of capital is reviewed on an annual basis
retirement benefits
among the range of retirement benefits provided in businesses around the group are a number of defined benefit pension plans and an
unfunded healthcare benefit scheme in the united states the amounts recorded in the financial statements for both of these types of
arrangement are based on a number of assumptions changes to which could have a material impact on the reported amounts 
any net deficit or surplus arising on defined benefit plans and the liability under the healthcare plan is shown in the balance sheet the amount
recorded is the difference between plan assets and liabilities at the balance sheet date plan assets are based on market value at that date
plan liabilities including healthcare liabilities are based on actuarial estimates of the present value of future pension or other benefits that will
be payable to members the most sensitive assumptions involved in calculating the expected liabilities are mortality rates and the discount
rate used to calculate the present value the main financial assumption is the real discount rate being the excess of the discount rate over 
the rate of inflation if this assumption changed by 01 the gross plan liabilities would change by approximately £18 million
the income statement generally comprises a regular charge to operating profit and a finance charge which represents the net of expected
income from plan assets and an interest charge on plan liabilities these calculations are based on expected outcomes at the start of the
financial year the income statement is most sensitive to changes in expected returns from plan assets and the discount rate used to calculate
the interest charge on plan liabilities a 01 change in the assumption of the real discount rate would change the finance expense by
approximately £04 million
full details of these assumptions which are based on advice from the group’s actuaries are set out in note 28
provisions
the group recognises a provision where a legal or constructive obligation exists at the balance sheet date and a reliable estimate can 
be made of the likely outcome where appropriate future cash outflows that are expected to arise over a number of years are discounted 
to a present value using a relevant discount rate
at the balance sheet date provisions included amounts for insurance claims payable by the group’s reinsurance company legal matters
employee termination costs and amounts payable under the deferred consideration clauses of the realignment of the sucralose business 
in april 2004
although provisions are reviewed on a regular basis and adjusted for management’s best current estimates the judgemental nature of these
items means that future amounts settled may be different from those provided
taxation
the group operates in a large number of tax jurisdictions around the world tax regulations generally are complex and in some jurisdictions
agreeing tax liabilities with local tax authorities can take several years consequently at the balance sheet date tax liabilities and assets are
based on management’s best estimate of the future amounts that will be settled while the group aims to ensure that the estimates recorded
are accurate the actual amounts could be different from those expected deferred tax assets mainly represent past tax losses that the group
expects to recover at some time in the future and by their nature the amounts recorded are therefore dependent on management’s judgement
about future events tate  lyle annual report 2006   79
4 segment information
primary format – business segments
a business segment is a group of assets and operations engaged in providing products or services that are subject to risks and returns 
that are different from those of other business segments on 2 june 2005 the group announced a change to the basis on which divisional
performance is reported to reflect its evolving strategy these divisions are the basis on which the group reports its primary segment
information as set out below
the segment results for the year to 31 march 2006 are as follows
food  food 
industrial industrial sugars
ingredients ingredients americas sugars
americas europe sucralose  asia europe group
£m £m £m £m £m £m
sales
total sales 1 133 759 142 273 1 559 3 866
intersegment sales 6 40 – – 100 146
external sales 1 127 719 142 273 1 459 3 720
operating profit
before exceptional items and amortisation 
of acquired intangible assets 125 46 68 27 62 328
exceptional items 14 263 – 1 – 248
amortisation of acquired intangible assets 1 – 4 – – 5
operating profit 138 217 64 28 62 75
net finance expense 33
profit before tax 42
segment assets 911 570 250 208 770 2 709
unallocated assets
– current tax assets 32
– deferred tax assets 7
– debt related derivative assets 40
– cash and cash equivalents 158
total assets 2 946
segment liabilities 237 142 78 83 320 860
unallocated liabilities
– corporate borrowings 1 028
– debt related derivative liabilities 28
– current tax liabilities 30
– deferred tax liabilities 60
total liabilities 2 006
other segment items
net operating assets 674 428 172 125 450 1 849
capital investments note a 112 90 126 12 22 362
depreciation note 15 42 47 11 7 18 125
amortisation of intangible assets note 14 124 –18
other noncash items 22 – – 26
a capital investments comprise capital expenditure on property plant and equipment intangible assets and investments these items include
amounts arising on acquisition of businesses 80 tate  lyle annual report 2006
notes to the consolidated financial statements 
continued
4 segment information continued
the segment results for the year to 31 march 2005 which do not include the effects of the adoption of ias32 and ias39 are as follows
food  food 
industrial industrial sugars
ingredients ingredients americas sugars
americas europe sucralose  asia europe group
£m £m £m £m £m £m
sales
total sales 1 039 802 115 237 1 257 3 450
intersegment sales 2 41 – – 68 111
external sales 1 037 761 115 237 1 189 3 339
operating profit
before exceptional items and amortisation
of acquired intangible assets 96 44 46 20 72 278
exceptional items 55 4 – 16 2 45
amortisation of acquired intangible assets – – 4 – – 4
operating profit 41 40 42 36 70 229
net finance expense 24
profit before tax 205
segment assets 741 745 139 162 485 2 272
unallocated assets
– current asset investments 1
– current tax assets 8
– cash and cash equivalents 384
total assets 2 665
segment liabilities 249 181 73 82 189 774
unallocated liabilities
– corporate borrowings 856
– current tax liabilities 23
– deferred tax liabilities 29
total liabilities 1 682
other segment items
net operating assets 492 564 66 80 296 1 498
capital investments note a 55 40 132 6 15 248
depreciation and other impairment losses note 15 41 44 11 9 22 127
amortisation of intangible assets note 14 – 1 4 – – 5
other noncash items 2 – – 1 2 5
a capital investments comprise capital expenditure on property plant and equipment intangible assets and investments these items include
amounts arising on acquisition of businesses
secondary format – geographical segments
the group’s operations are based in four main geographical areas the united kingdom is the home country of the parent the main
operations in the principal territories are as follows
external sales segment assets capital investments
year to 31 march 2006 2005 2006 2005 2006 2005
£m £m £m £m £m £m
united kingdom 666 667 716 543 15 19
other european countries 862 797 638 733 95 36
north america 1 478 1 333 1 147 880 164 178
rest of the world 714 542 208 116 88 15
total 3 720 3 339 2 709 2 272 362 248
unallocated assets – – 237 393 – –
3 720 3 339 2 946 2 665 362 248 tate  lyle annual report 2006   81
5 sales
analysis of sales by category
year to 31 march
2006 2005
£m £m
sales of goods and services excluding share of joint ventures’ sales 3 348 3 001
share of sales of joint ventures note 16 372 338
3 720 3 339
6 operating profit
year to 31 march
2006 2005
£m £m
external sales 3 720 3 339
staff costs note 9 295 271
inventories
– cost of inventories recognised as an expense included in cost of sales 2 171 1 980
– impairment of inventory recognised in the year 3 2
– reversal of part of inventory write down recognised in prior year – 1
depreciation and impairment of property plant and equipment note 15
– owned assets 125 127
amortisation of intangible assets note 14
– intangible assets arising on acquisition of businesses 5 4
– other intangible assets 3 1
repairs and maintenance expenditure on property plant and equipment 86 89
operating lease rentals
– property 21 14
– plant and machinery 12 12
research and development expenditure 21 20
impairment of trade receivables note 20 1 1
exceptional items note 8 248 45
other operating income and expenses 654 545
total 3 645 3 110
operating profit 75 229
7 auditors’ remuneration
during the year the group including its overseas subsidiaries obtained the following services from the group’s auditor at costs as detailed below
year to 31 march
2006 2005
£m £m
audit and auditrelated services
statutory audit fee and expenses 20 18
auditrelated – ifrs 01 04
auditrelated – us bond offering – 01
auditrelated services – other 01 –
nonaudit services
tax services – compliance 01 01
total auditors’ remuneration 23 24 82 tate  lyle annual report 2006
notes to the consolidated financial statements 
continued
8 exceptional items
exceptional items are as follows
year to 31 march
2006 2005
£m £m
impairment losses a 272 –
us healthcare benefit curtailment b 24 –
losses related to settlement of litigation claims c – 55
net gains on disposal of operations and assets d – 10
total exceptional items 248 45
a the current year impairment losses comprise two items a £263 million impairment of property plant and equipment in food  industrial
ingredients europe arising from the expected impact of the new eu sugar regime regulations as explained in the chief executive’s
review and note 15 and a £9 million impairment of property plant and equipment in the uk citric acid business reported as part 
of the food  industrial ingredients americas division as explained in note 15
b an exceptional credit of £24 million arises from a change in benefits provided to certain members of the group’s us healthcare scheme
following changes to us government healthcare provisions
c prior year amounts represent costs relating to the settlement of the high fructose corn syrup class action lawsuit in the united states
d prior year amounts comprise a credit of £16 million relating to the settlement of the balance due on a loan note issued to the purchaser 
of western sugar offset by net losses on disposal of operations and assets of £6 million
the tax impact on net exceptional items was a £19 million credit 2005 – £16 million tax credits on exceptional items are only recognised 
to the extent that losses created are expected to be recoverable in the future
exceptional items include £1 million 2005 – £nil million attributable to minority interests
9 staff costs
staff costs for the group during the year
year to 31 march
2006 2005
£m £m
wages and salaries 240 218
social security costs 30 28
other pension costs 
– defined benefit schemes 18 19
– defined contribution schemes 1 1
– retirement healthcare benefits 1 1
sharebased payments 5 4
295 271
the average number of people employed by the group excluding associates’ employees and including a proportionate share of people
employed by joint ventures is set out in the table below in accordance with the companies act 1985 this includes parttime employees
year to 31 march
by business segment 2006 2005
food  industrial ingredients americas 2 592 2 454
food  industrial ingredients europe 2 952 2 885
sucralose 243 192
sugars americas  asia 1 645 1 621
sugars europe 1 699 1 717
9 131 8 869
the number of people employed by the group at 31 march 2006 was 9349 2005 – 9003 tate  lyle annual report 2006   83
9 staff costs continued
key management compensation
year to 31 march
2006 2005
£m £m
salaries and shortterm employee benefits 4 4
postemployment benefits 1 1
sharebased payments 1 1
6 6
key management include the company’s board of directors details of whose remuneration are given in the directors’ remuneration report
on pages 54 to 64 the company secretary and the group human resources director
10 interest income and finance expense
year to 31 march
2006 2005
£m £m
interest income
interest receivable 45 34
finance expense 
interest payable on bank borrowings 2 4
interest payable on other borrowings 71 49
net finance cost arising on defined benefit retirement schemes
– interest cost 68 66
– expected return on plan assets 65 63
unwinding of discounts in provisions 2 2
total finance expense 78 58
net finance expense 33 24
finance expense is shown net of borrowing costs capitalised into the cost of assets of £4 million 2005 – £1 million at a capitalisation rate of
43 2005 – 35
interest payable on other borrowings includes £02 million 2005 – not applicable dividends in respect of the group’s 65 cumulative
preference shares 
11 income tax expense
analysis of charge for the year
year to 31 march
2006 2005
£m £m
current tax
– uk 18 10
– overseas 53 59
71 49
deferred tax note 27 2 6
total income tax expense 69 55 84 tate  lyle annual report 2006
notes to the consolidated financial statements 
continued
11 income tax expense continued
tax on items recognised directly in equity note 27
year to 31 march
2006 2005
£m £m
deferred tax creditcharge on sharebased payments 2 2
deferred tax chargecredit on actuarial gain 12 5
10 3
the effective tax rate for the year calculated on the basis of the total income tax expense as a proportion of profit before tax is 1643
2005 – 268 this compares with the standard rate of corporation tax in the united kingdom of 30 2005 – 30 as follows
year to 31 march
2006 2005
£m £m
profit before tax 42 205
corporation tax charge thereon at 30 2005 – 30 13 62
adjusted for the effects of
– expenses not deductible for tax purposes – 6
– losses not recognised 71 12
– adjustments to tax charged in respect of previous periods 10 9
– different tax rates applied on overseas earnings 5 10
income tax expense for the year 69 55
the effective rate of tax on profit before exceptional items and amortisation was 302 2005 – 284
12 earnings per share
basic
basic lossearnings per share is calculated by dividing the lossprofit attributable to equity holders of the company by the weighted average
number of ordinary shares in issue during the year excluding ordinary shares purchased by the company and held as esop shares
year to 31 march
2006 2005
lossprofit attributable to equity shareholders of the company £million 30 146
weighted average number of ordinary shares in issue millions 4767 4717
basic lossearnings per share 63p 310p
diluted
diluted lossearnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion
of all potential dilutive ordinary shares potential dilutive ordinary shares arise from share options for these a calculation is performed to
determine the number of shares that could have been acquired at fair value determined as the average annual market share price of the
company’s shares based on the monetary value of the subscription rights attached to outstanding share options the number of shares
calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options
year to 31 march
2006 2005
lossprofit attributable to equity shareholders of the company £million 30 146
weighted average number of ordinary shares in issue millions 4767 4717
adjustments for dilutive effect of share options millions note a – 48
weighted average number of ordinary shares for diluted earnings per share millions 4767 4765
diluted lossearnings per share 63p 306p
a the adjustment for the dilutive effect of share options in the year to 31 march 2006 has not been reflected in the calculation of the diluted
loss per share as the effect would be antidilutive tate  lyle annual report 2006   85
12 earnings per share continued
adjusted earnings per share
adjusted lossearnings per share is stated excluding exceptional items and amortisation of acquired intangible assets as follows
year to 31 march
2006 2005
lossprofit attributable to equity shareholders of the company £million 30 146
adjustments
– exceptional items note 8 248 45
– exceptional items attributable to minority interests 1 –
– amortisation of acquired intangible assets 5 4
– tax effect of the above adjustments 20 17
adjusted profit £million 202 178
adjusted basic earnings per share
weighted average number of ordinary shares in issue millions 4767 4717
adjusted basic earnings per share 424p 377p
adjusted diluted earnings per share
weighted average number of ordinary shares for diluted earnings per share millions 4843 4765
adjusted diluted earnings per share 417p 374p
13 dividends
year to 31 march
2006 2005
dividends paid on ordinary equity shares
– final paid £million 65 62
– interim paid £million 28 27
total dividend paid £million 93 89
the total ordinary dividend is 200p 2005 – 194p made up as follows
– interim dividend paid 59p 57p
– final dividend proposed 141p 137p
200p 194p
the final dividend proposed for the year which has not been recognised as a liability will be paid subject to approval by shareholders at the
company’s annual general meeting on 19 july 2006 to shareholders who are on the register of members on 30 june 2006 86 tate  lyle annual report 2006
notes to the consolidated financial statements 
continued
14 intangible assets
other
acquired other
goodwill intangible intangible
note b patents assets assets total
£m £m £m £m £m
cost
at 1 april 2005 154 32 – 28 214
businesses acquired note 35 26 – 48 – 74
additions at cost – – – 4 4
adjustments to goodwill note a 8 – – – 8
exchange differences 7 – – – 7
at 31 march 2006 179 32 48 32 291
accumulated amortisation and impairments
at 1 april 2005 – 4 – 16 20
amortisation charge for the year –4138
at 31 march 2006 – 8 1 19 28
net book value at 31 march 2006 179 24 47 13 263
cost
at 1 april 2004 144 – – 27 171
businesses acquired 17 32 – – 49
additions at cost – – – 1 1
adjustments to goodwill note a 6 – – – 6
exchange differences 1 – – – 1
at 31 march 2005 154 32 – 28 214
accumulated amortisation and impairments
at 1 april 2004 – – – 15 15
amortisation charge for the year – 4 – 1 5
at 31 march 2005 – 4 – 16 20
net book value at 31 march 2005 154 28 – 12 194
a adjustments to goodwill include amounts arising under the realignment of the sucralose business on 2 april 2004 the ‘realignment’ under
the terms of the realignment deferred consideration is payable to mcneil nutritionals ‘mcneil’ based on the achievement of certain minimum
targets in respect of sales of sucralose made by the group see note 29 expected future payments were provided for at the time of the
realignment and any changes to the group’s estimates of the deferred consideration are adjusted to goodwill another feature of the realignment
is that the group receives amounts from the vendor mcneil based on sales of sucralose tabletop products made by mcneil for ten years
from the date of the realignment these receipts are treated as contingent assets only recognised in the periods in which they are earned
and are shown as a deduction from goodwill on elimination of goodwill the receipts are recognised in the income statement  tate  lyle annual report 2006   87
14 intangible assets continued
b the carrying amounts of goodwill by business segment are as follows
as at 31 march
2006 2005
£m £m
food  industrial ingredients americas 73 57
food  industrial ingredients europe 102 87
sucralose – 8
sugars europe 4 2
179 154
goodwill is tested for impairment annually and whenever there is an indication of impairment unless otherwise stated impairment reviews 
are carried out in accordance with the methodology set out in notes 2 and 3 
food  industrial ingredients americas goodwill of £73 million includes £53 million relating to the staley acquisition which is treated as one
cash generating unit ‘cgu’ for impairment testing purposes as the business is managed as one entity and it is therefore not appropriate 
to allocate goodwill to individual plants cash flows used were based on the latest approved plans for five years discounted at 12 no
impairment is required
goodwill in the food  industrial ingredients europe division of £102 million includes £90 million relating to the acquisition in 2000 of the
minority of 34 of shares of the former amylum business although cash flows have been identified for individual plants for the purposes 
of assessing the recoverable amounts of property plant and equipment as described in note 15 the business is managed as a network with 
a large amount of interdependency between plants and centralised decision making consequently goodwill is monitored at a divisional level
and allocated to a group of plant cgus for the purposes of impairment testing as a result of the proposed changes to the eu sugar regime
described in the chief executive’s review management has concluded that in certain markets the business is unlikely to be able to 
generate sufficient returns to cover its cost of capital as required by ias36 the property plant and equipment has been reviewed first
resulting in an impairment charge of £263 million as described in note 15 subsequently the goodwill has been tested for impairment and the
recoverable amount has been estimated based on the assets remaining after the impairment to property plant and equipment recoverable
amount was based on value in use which was calculated based on estimated future cash flows using management internal forecasts of
future margins excluding the impact of any major initiatives for the next five years the discount rate used was 11 and zero growth was
assumed in perpetuity due to the regulated nature of the market as a result of this review management has concluded that the recoverable
amount on a value in use basis of the group of plant cgus is greater than the remaining net book value of goodwill and assets and
consequently no impairment is required
the remaining goodwill relates to a number of smaller acquisitions each of which has been tested for impairment using management
projections for five years and discount rates in the range of 10 to 12 during the year goodwill of £12 million has been recognised 
on the acquisition of cesalpinia foods part of food  industrial ingredients europe and £12 million on the acquisition of continental 
custom ingredients part of food  industrial ingredients americas as described in note 35 no impairment losses were identified in 
respect of these businesses
notes to the consolidated financial statements 
continued 88 tate  lyle annual report 2006
notes to the consolidated financial statements 
continued
15 property plant and equipment
assets in the
land and plant and course of 
buildings machinery construction total
£m £m £m £m
cost or valuation
at 1 april 2005 526 2 078 97 2 701
businesses acquired note 35 8 4 1 13
additions at cost 6 35 235 276
transfers on completion 9 93 102 –
disposals 4 27 – 31
exchange differences 36 112 5 153
at 31 march 2006 581 2 295 236 3 112
accumulated depreciation and impairments
at 1 april 2005 195 1 242 – 1 437
depreciation charge for the year 17 108 – 125
impairment losses for the year 65 196 11 272
disposals 3 26 – 29
exchange differences 16 82 – 98
at 31 march 2006 290 1 602 11 1 903
net book value at 31 march 2006 291 693 225 1 209
cost or valuation
at 1 april 2004 495 1 963 94 2 552
businesses acquired 8 48 1 57
additions at cost 6 25 117 148
transfers on completion 20 95 115 –
disposals 3 52 – 55
exchange differences – 1 – 1
at 31 march 2005 526 2 078 97 2 701
accumulated depreciation and impairments
at 1 april 2004 181 1 174 – 1 355
depreciation charge for the year 16 109 – 125
impairment losses for the year – 2 – 2
disposals 2 42 – 44
exchange differences – 1 – 1
at 31 march 2005 195 1 242 – 1 437
net book value at 31 march 2005 331 836 97 1 264
impairment losses
it is the group’s policy to test assets for impairment whenever events or changes in circumstances indicate that their carrying amounts may
not be recoverable as a result of the forthcoming changes to the eu sugar regime which will reduce significantly eu subsidised exports of
sugar and is explained in detail in the chief executive’s review the group has carried out an impairment review of the assets in food 
industrial ingredients europe and sugars europe in addition the citric business in the uk has continued to generate returns below its cost 
of capital and this business has been subject to a similar review 
food  industrial ingredients europe is a major supplier of sweeteners which operate in direct competition to sugar throughout europe 
as a result of the proposed changes to the eu sugar regime management has concluded that in certain markets the business is unlikely to 
be able to generate sufficient returns to cover its cost of capital consequently an impairment review has been carried out by comparing the
recoverable amount of the individual cash generating units with their net book values for the purposes of the review individual plants were
used as the relevant cash generating units except for the plants in belgium and france for which a combined review was performed due 
to the operational interdependency between the two sites recoverable amount was generally based on value in use which was calculated
based on estimated future cash flows using management internal forecasts of future margins excluding the impact of any major initiatives 
for the next five years the discount rate used was 11 and zero growth was assumed in perpetuity due to the regulated nature of the
market for certain cash generating units the calculation of fair value less costs to sell based on management estimates in the absence of 
an active market resulted in recoverable amounts that were higher than value in use consequently for those sites the recoverable amount
was based on fair value less costs to sell as a result of the review an impairment loss of £263 million allocated prorata to the asset base 
of the plants impacted has been recognised in the year ended 31 march 2006  tate  lyle annual report 2006   89
15 property plant and equipment continued
sugars europe is also impacted by the proposed changes to the sugar regime however management’s impairment review of this business
did not result in an impairment loss
the citric business in the uk has been impacted by margin pressure from increasing raw material and energy costs an impairment review
has been carried out and an impairment of £9 million has been recognised in the year ended 31 march 2006 cash flows were forecast based
on management plans for five years and no growth was assumed in perpetuity the discount rate used was 12
leased assets
included in property plant and equipment is £1 million 2005 – £2 million in respect of plant and machinery held under finance leases
capitalised borrowing costs
the aggregate amount of borrowing costs included in the cost of property plant and equipment is £44 million 2005 – £41 million of which
£4 million 2005 – £1 million was capitalised during the year  90 tate  lyle annual report 2006
16 investments in associates joint ventures
associates total
£m
at 1 april 2004 3
disposals 1
exchange differences 1
at 31 march 2005 3
exchange differences 1
at 31 march 2006 4
joint ventures
the group’s joint ventures which are proportionately consolidated are listed in note 39 the amounts proportionately consolidated in the
group income statement and balance sheet are summarised below
income statement year to 31 march
2006 2005
£m £m
sales 372 338
expenses 326 300
profit before tax 46 38
income tax expense 10 11
profit for the year 36 27
balance sheet 31 march 31 march
2006 2005
£m £m
assets
noncurrent assets 190 162
cash and cash equivalents 30 30
other current assets 134 141
354 333
liabilities
noncurrent borrowings 1 5
other noncurrent liabilities 16 17
current borrowings 27 45
other current liabilities 43 55
87 122
net assets 267 211
the group’s proportionate interest in joint ventures’ commitments and contingent liabilities was £nil million 2005 – £nil million
notes to the consolidated financial statements 
continued tate  lyle annual report 2006   91
17 availableforsale financial assets
£m
at 31 march 2005 –
impact of ias3239 adoption note 41 17
restated at 1 april 2005 17
additions 1
fair value loss 1
at 31 march 2006 17
the availableforsale financial assets category arose on adoption of ias39 on 1 april 2005 further details are set out in note 41
availableforsale financial assets include the following
31 march
2006
£m
listed securities 6
unlisted securities 11
17
listed securities are stated at market valuation
the fair values of unlisted securities are based on cash flows discounted using a riskadjusted average discount rate of 11 92 tate  lyle annual report 2006
18 derivative financial instruments
as explained in note 41 ias32 and ias39 have been adopted from 1 april 2005 the uk gaap fair value comparative information is provided
in note 26
31 march 2006
assets liabilities
£m £m
noncurrent derivative financial instruments used to manage the 
group’s net debt profile
currency swaps – net investment hedges 12 8
interest rate swaps – fair value hedges 14 19
interest rate caps – held for trading 2 –
28 27
current derivative financial instruments used to manage the 
group’s net debt profile
currency swaps – net investment hedges 1–
currency swaps – fair value hedges 11
interest rate swaps – fair value hedges 10 –
12 1
total derivative financial instruments used to manage the 
group’s net debt profile 40 28
other noncurrent derivative financial instruments
commodity pricing contracts – cash flow hedges –1
–1
other current derivative financial instruments
forward foreign exchange contracts – cash flow hedges 34
commodity pricing contracts – cash flow hedges 20 21
commodity pricing contracts – held for trading 247 176
270 201
total other derivative financial instruments 270 202
total derivative financial instruments 310 230
presented in the balance sheet as follows
total noncurrent derivative financial instruments 28 28
total current derivative financial instruments 282 202
310 230
the net loss included in operating profit from trading financial instruments was £7 million
cash flow hedges
the group employs forward foreign exchange contracts and commodity pricing contracts to hedge cash flow risk associated with forecast
transactions the notional principal amounts of the outstanding forward foreign exchange contracts as of 31 march 2006 are as follows
£m
euro 89
us dollar 46
canadian dollar 8
norwegian krona 7
british pound 139
singapore dollar 21
other 1
gains and losses recognised in the cash flow hedge reserve in equity note 23 on forward foreign exchange contracts as of 31 march 2006
will be released to the income statement at various dates up to 12 months from the balance sheet date
gains and losses recognised in the cash flow hedge reserve in equity note 23 on commodity pricing contracts as of 31 march 2006 will be
released to the income statement at various dates up to 24 months from the balance sheet date
notes to the consolidated financial statements 
continued tate  lyle annual report 2006   93
18 derivative financial instruments continued
fair value hedges
the group employs currency and interest rate swap contracts to hedge the currency and interest rate risks associated with its borrowings
the notional principal amounts of the outstanding currency and interest rate swap contracts applied in fair value hedging relationships as 
of 31 march 2006 were £410 million and £200 million respectively
net investment hedges
the group employs currency swap contracts to hedge the currency risk associated with its net investments in subsidiaries located primarily 
in europe and the united states the notional principal amounts of the outstanding currency swap contracts applied in net investment
hedging relationships as of 31 march 2006 were £195 million the fair value loss of £22 million on translation of the currency swap contracts
to sterling at the balance sheet date was recognised in the translation reserve in shareholders’ equity note 23
certain of the group’s borrowings are also designated as hedges of the net investments in overseas subsidiaries
trading contracts
commodity pricing contracts held for trading relate to the group’s commodity trading activities
interest rate caps
interest rate caps hedge the group’s exposure to interest rate risk but do not qualify for hedge accounting see note 26 the notional
amounts of the outstanding interest rate caps as of 31 march 2006 were £209 million
19 inventories
31 march 31 march
2006 2005
£m £m
raw materials and consumables 196 139
work in progress 21 16
finished goods 239 217
456 372
finished goods inventories of £9 million 2005 – £2 million are carried at fair value less costs to sell this being lower than cost
during the year the group reversed £nil million 2005 – £1 million note 6 being part of an inventory write down made in the prior year that
was subsequently not required 94 tate  lyle annual report 2006
20 trade and other receivables
31 march 31 march
2006 2005
£m £m
noncurrent trade and other receivables
trade receivables 4 7
other loans 4 6
8 13
current trade and other receivables
trade receivables 433 350
less provision for impairment of receivables 8 8
trade receivables – net 425 342
amounts owed by related parties – 2
prepayments and accrued income 30 33
other receivables 27 33
482 410
all noncurrent receivables are due after more than five years from the balance sheet date
the fair values of the noncurrent trade and other receivables are not materially different from their carrying values the fair values of the
current trade and other receivables are equivalent to their carrying values due to being shortterm in nature
the group recognised a loss of £1 million 2005 – £1 million for the impairment of its trade receivables during the period the loss has been
included in operating income in the income statement
included in trade receivables are amounts received of £101 million 2005 – not applicable in respect of securitised receivables which are also
included in current borrowings there is no concentration of credit risk with respect to trade receivables as the group has a large number of
customers internationally dispersed
notes to the consolidated financial statements 
continued tate  lyle annual report 2006   95
21 share capital and share premium
total
ordinary preference share share
shares shares capital premium total
£m £m £m £m £m
at 1 april 2004 121 2 123 383 506
proceeds from shares issued 1 – 1 10 11
at 31 march 2005 122 2 124 393 517
impact of ias3239 adoption note 41 – 2 2 – 2
at 1 april 2005 122 – 122 393 515
proceeds from shares issued – – – 7 7
at 31 march 2006 122 – 122 400 522
preference shares were reclassified to borrowings on 1 april 2005 on adoption of ias32 as set out in note 41
authorised equity share capital
31 march
2006 2005
£m £m
790424000 ordinary shares of 25p each 2005 – 790424000 198 198
allotted called up and fully paid equity share capital
31 march 31 march
2006 2005
shares £m shares £m
at 1 april 486 471 879 122 482 865 893 121
allotted under share option schemes 2 268 237 – 3 605 986 1
at 31 march 488 740 116 122 486 471 879 122
analysis of ordinary shareholders
number of
at 31 march 2006 holdings  total 
up to 500 shares of 25p each 5 076 281 1 388 989 03
501 – 1 000 4 401 243 3 466 944 07
1 001 – 1 500 2 432 134 3 051 306 06
1 501 – 2 000 1 668 92 3 014 644 06
2 001 – 5 000 2 861 158 8 946 416 18
5 001 – 10 000 699 39 5 019 482 10
10 001 – 200 000 718 40 34 113 183 70
200 001 – 500 000 104 06 32 904 072 68
above 500 000 128 07 396 835 080 812
18 087 100 488 740 116 100 96 tate  lyle annual report 2006
21 share capital and share premium continued
substantial interests in share capital
the following notifications of significant shareholders’ interests had been received by 24 may 2006 under the provisions of the companies
act 1985
 of ordinary 
number of issued share
shares capital notified
barclays plc 58 723 371 1203
axa sa 57 045 938 1169
causeway capital management llc 19 761 775 406
legal and general group plc 14 954 390 310
22 consolidated statement of changes in shareholders’ equity
attributable to the
share capital and equity holders of
share premium other reserves retained earnings the company minority interest total equity
£m £m £m £m £m £m 
notes 21 23
balance at 1 april 2004 506 111 277 894 29 923
net profitloss recognised directly in equity – 3 16 13 – 13
profit for the year – – 146 146 4 150
sharebased payments including tax – – 2 2 – 2
esop shares acquired – – 6 6 – 6
proceeds from shares issued 11 – 5 16 – 16
equity transfers – 4 4 – – –
dividends paid note 13 – – 88 88 1 89
balance at 31 march 2005 517 110 324 951 32 983
impact of ias3239 adoption note 41 2 8 1 7 – 7
balance at 1 april 2005 515 118 325 958 32 990
net profitloss recognised directly in equity – 58 105 47 – 47
lossprofit for the year – – 30 30 3 27
sharebased payments including tax – – 7 7 – 7
proceeds from shares issued 7 – 9 16 – 16
equity transfers – 4 4 – – –
dividends paid note 13 – – 93 93 – 93
balance at 31 march 2006 522 56 327 905 35 940
the adoption of ias39 resulted in an increase in shareholders’ equity at 1 april 2005 of £7 million of which £nil million was attributable to the 
minority interest
cumulative goodwill written off to retained earnings amounted to £336 million 2005 – £336 million retained earnings at 31 march 2006
includes a deduction for own shares held by the esop trust of £30 million 2005 – £39 million all but 001p per share of the dividends arising
on these shares have been waived by the trust
notes to the consolidated financial statements 
continued tate  lyle annual report 2006   97
23 other reserves
hedging translation other
reserve reserve reserves total
£m £m £m £m
at 1 april 2004 – – 111 111
currency translation differences – 2 1 3
equity transfer – – 4 4
at 31 march 2005 – 2 108 110
impact of ias3239 adoption note 41 7 – 1 8
at 1 april 2005 7 2 109 118
net valuation losses on availableforsale financial assets – – 1 1
net loss on cash flow hedges 3 – – 3
currency translation differences
– net investment hedging losses in the period – 50 4 54
equity transfer – – 4 4
at 31 march 2006 4 48 100 56
other reserves comprise reserves which existed under uk gaap including the merger reserve the availableforsale fair value reserve and
the statutory reserves of certain overseas subsidiaries all of which are nondistributable
24 sharebased payments
during the year to 31 march 2006 various equitysettled sharebased payment arrangements existed which are described below
deferred
sharesave scheme
performance executive share bonus duration
type of arrangement share plan option scheme share plan in years
timing of grant biannually in june annually in june annually in july annually in annually in 
and november see note i june december
number of optionsshares granted in year 
to 31 march 2006 2 008 911 – 149 466 3 70 042 92 639
5 51 545 54 296
number of optionsshares granted in year 
to 31 march 2005 1 617 843 4 346 644 – 3 177 426 114 588
5 70 463 44 032
fair value per share for 2006 grant pence 237 – 479 3 99 171
5 109 181
fair value per share for 2005 grant pence 140 60 3 67 112
5 69 121
valuation basis monte carlo binomial lattice monte carlo blackscholes blackscholes
contractual life 10 years 10 years 3 years 35 years 35 years
vesting conditions see note ii see note iii see note iv see note v see note v
i the last grant under this scheme was made in june 2004
ii exercise is dependent on total shareholder return as measured by reference to a comparator group over a threeyear period following
grant participants are not entitled to dividends prior to the exercise of options
iii exercise is dependent on earnings per share performance relative to inflation over a threeyear period following grant participants are not 
entitled to dividends prior to the exercise of options
iv executives have the opportunity to defer up to 50 of their annual cash bonus after deduction of tax national insurance or other social
security payment and invest the amount deferred in the company’s shares subject to the satisfaction of employment conditions and a
performance target over the performance period participants will receive awards of matching shares based on the number of shares
which could have been acquired from the gross bonus amount deferred by the participant during the performance period dividends are
paid on the deferred shares but not on matching shares further details are set out on page 56 of the remuneration report
v options granted in the years to 31 march 2005 and 31 march 2006 were by invitation at a 10 discount to the market price options are
exercisable at the end of a threeyear or fiveyear savings contract
the group recognised total expenses of £5 million 2005 – £4 million related to equitysettled sharebased payment transactions during 
the year 98 tate  lyle annual report 2006
24 sharebased payments continued
details of the movements for equitysettled share option schemes during the year to 31 march were as follows
2006 2005
weighted weighted
average average
exercise exercise
price price
number pence number
1
pence
outstanding at 1 april 19 235 965 284 18 870 520 303
granted 2 277 433 51 6 370 996 243
exercised 4 720 383 333 4 888 325 294
lapsed 342 641 260 1 117 226 301
outstanding at 31 march 16 450 374 237 19 235 965 284
1 comparatives have been restated to reflect minor amendments
the weighted average tate  lyle plc share price at the date of exercise for share options exercised during the year was 546 pence 
2005 – 460 pence at 31 march 2006 2902460 2005 – 6250224 of the outstanding options were exercisable at a weighted average
exercise price of 350 pence 2005 – 351 pence a detailed breakdown of the range of exercise prices for options outstanding at 31 march 
is shown in the table below
2006 2005
weighted weighted weighted weighted
average average average average
number remaining exercise number remaining exercise
outstanding contractual price outstanding contractual price
at end of year life in months in pence at end of year life in months in pence
at nil cost 4 674 449 1032 – 2 727 297 1081 –
£001 to £199 69 254 227 182 604 230 191 182
£200 to £399 10 986 695 796 326 14 583 871 884 327
£400 to £599 719 976 377 437 1 320 567 370 449
total 16 450 374 842 237 19 235 965 855 284
the fair value of grants is measured using the valuation technique that is considered to be the most appropriate to value each class of grant
these include binomial lattice models blackscholes calculations and monte carlo simulations these valuations take into account factors 
such as nontransferability exercise restrictions and behavioural considerations key assumptions are detailed below
deferred performance sharesave
at 31 march 2006 bonus plan share plan scheme
expected volatility 25 25 25
expected life na na 3555 years
riskfree rate na na 47
expected dividend yield 39 39 39
forfeiture rate 0 0 0
correlation with comparators 35 35 na
volatility of comparators 1857 1857 na
expectations of meeting performance criteria 100 100 na
weighted average market price at date of grant pence 467 487 537
executive share performance sharesave
at 31 march 2005 option scheme share plan scheme
expected volatility 25 25 25
expected life na na 3555 years
riskfree rate 53 na 51
expected dividend yield 57 57 39
forfeiture rate 0 0 0
correlation with comparators na 35 na
volatility of comparators na 1857 na
expectations of meeting performance criteria 100 na na
weighted average market price at date of grant pence 323 323 389
the expected volatility is based on the company’s historical volatility over the threeyear period prior to each award date
notes to the consolidated financial statements 
continued tate  lyle annual report 2006   99
25 trade and other payables
31 march 31 march
2006 2005
£m £m
noncurrent payables
accruals and deferred income 2 6
other payables 1 2
3 8
current payables
trade payables 216 218
social security 17 15
amounts owed to related parties 1 3
accruals and deferred income 94 124
other payables 54 44
382 404 100 tate  lyle annual report 2006
26 borrowings
noncurrent borrowings
31 march 31 march
2006 2005
£m £m
unsecured borrowings
2394000 65 cumulative preference shares of £1 each 2005 – £2394000 note a 2 –
industrial revenue bonds 20022023 us23700000 14 13
floating rate note 2007 €150000000 – 103
65 guaranteed note 2012 £200000000 205 185
50 notes 2014 us500000000 276 262
575 guaranteed bonds 2006 €300000000 – 206
497 769
bank loans
variable unsecured loans euro 35 –
variable unsecured loans us 5 6
variable secured loans us – 12
40 18
other borrowings
obligations under finance leases – 1
– 1
total noncurrent borrowings 537 788
a preference shares were reclassified to borrowings on 1 april 2005 on adoption of ias32 as set out in note 41
on a return of capital on a windingup the holders of65 cumulative preference shares shall be entitled to £1 per share in preference to 
all other classes of shareholders holders of these shares are entitled to vote at meetings except on the following matters any question as 
to the disposal of the surplus profits after the dividend on these shares has been provided for the election of directors their remuneration 
any agreement between the directors and the company or the alteration of the articles of association dealing with any of such matters
current borrowings
31 march 31 march
2006 2005
£m £m
floating rate note 2007 €150000000 105 –
575 guaranteed bonds 2006 €300000000 213 –
unsecured bank overdrafts 9 15
receivables securitisation 101 –
shortterm loans
– unsecured 47 27
– secured 12 23
current portion of noncurrent borrowings 4 3
total current borrowings 491 68
secured borrowings
lease liabilities are effectively secured as the rights to the leased asset revert to the lessor in the event of default
other secured borrowings are secured on property plant and equipment receivables and inventories
notes to the consolidated financial statements 
continued tate  lyle annual report 2006   101
26 borrowings continued
fair values
the fair values of the group’s borrowings compared with their book values are as follows
31 march 31 march
2006 2006
book value fair value
£m £m
unsecured debenture loans 814 826
noncurrent bank loans 40 40
current borrowings 174 173
total 1 028 1 039
interest rate risks and maturity of borrowings
the maturity profile of the group’s noncurrent borrowings is as follows
31 march 31 march
2006 2005
£m £m
one to two years 1 322
two to five years 4 7
after five years 532 459
total noncurrent borrowings 537 788
floating rate borrowings bear interest based on relevant national libor equivalents if the interest rates applicable to the group’s floating rate
debt rise from the levels at 31 march 2006 by an average of 1 over the year to 31 march 2007 this would reduce group profit before tax by
approximately £5 million
the exposure of the group to interest rate changes when borrowings reprice is as follows
within one one to two two to five after five
year years years years total
£m £m £m £m £m
at 31 march 2006
total borrowings 502 4 4 518 1 028
effect of interest rate swaps 46 – 242 288 –
548 4 246 230 1 028
as part of its interest rate management strategy the group has entered into interest rate caps for a notional principal amount of £209 million
2005 – £203 million capping interest rates at 4 or 5 until 2009 or 2007 respectively
taking into account the group’s interest rate swap and cap contracts the effective interest rates of its borrowings are as follows
31 march
2006 2005
2394000 65 cumulative preference shares of £1 each 2005 – £2394000 65 65
industrial revenue bonds 20022023 us23700000 32 23
floating rate note 2007 €150000000 35 31
65 guaranteed note 2012 £200000000 49 37
50 notes 2014 us500000000 47 44
575 guaranteed bonds 2006 €300000000 47 42
shortterm loans and overdrafts
current shortterm loans mature within the next 12 months and overdrafts are repayable on demand both shortterm loans and bank
overdrafts are arranged at floating rates of interest and expose the group to cash flow interest rate risk
credit facilities and arrangements
the group has undrawn committed multicurrency facilities of £353 million 2005 – £327 million which expire in 2009 these facilities incur
commitment fees at market rates the facilities may only be withdrawn in the event of specified events of default in addition the group has
substantial uncommitted facilities 102 tate  lyle annual report 2006
26 borrowings continued
at 31 march 2006 a us subsidiary had outstanding external borrowings of us800 million the principal amount of which is guaranteed 
by another group company by way of creditlinked deposits with a bank of us680 million and pledged bank securities of us120 million 
the guarantees result in these borrowings being in substance nonrecourse to the group as to principal in the event of default and
accordingly the borrowings and deposits are offset in these financial statements 
uk gaap comparatives
ias32 was not adopted until 1 april 2005 comparative information with respect to the carrying values and fair values is therefore presented
below under uk gaap  the accounting policy is detailed in note 41
31 march 31 march
2005 2005
book value fair value
£m £m
financial instruments held or issued to finance the group’s operations
cash and cash equivalents 384 384
borrowings and bank overdrafts
1
856 888
nonequity shares 2 2
financial instruments used to manage the interest rate and currency borrowings
interest and currency related derivatives 4 2
financial instruments used to hedge future transactions
commodity and currency related instruments 5–
derivative financial instruments held for trading
commodity derivatives
2
1 1
1 borrowings include the effect of crosscurrency swaps used in managing the group’s currency and interest rate risk the book value of these swaps at 31 march
2005 was £13 million asset and the fair value was £15 million asset
2 the fair values of commodity derivatives are calculated as the product of the volume and the difference between their strike or traded price and the corresponding
market price the market price is based upon the corresponding closing price of that market where there is no terminal market andor the market is illiquid the
market price is based upon management estimates taking into consideration all relevant current market and economic factors
the interest rate exposure of the financial assets of the group at 31 march 2005 included £108 million on noninterest bearing assets and
£390 million on floating rate assets the currency exposure of these assets totalling £498 million was as follows £108 million sterling
£171 million us dollars £56 million euro £23 million canadian dollars and £140 million other
at 31 march 2005 the total net unrecognised gains on hedges were £5 million which included unrecognised gains of £18 million and
unrecognised losses of £13 million
27 deferred tax 
deferred tax is calculated in full on temporary differences using tax rates applicable in the jurisdictions where such differences arise
movements in deferred income tax liabilities in the year are as follows
total
deferred tax £m
at 1 april 2004 47
businesses acquired 19
charged to income note 11 6
credited to statement of recognised income and expense 5
at 31 march 2005 29
impact of ias3239 adoption note 41 4
at 1 april 2005 33
reclassification to current tax 9
businesses acquired 20
credited to income note 11 2
charged to statement of recognised income and expense 12
exchange differences 1
at 31 march 2006 53
notes to the consolidated financial statements 
continued tate  lyle annual report 2006   103
27 deferred tax continued
of the amounts of deferred tax credited to income and equity £2 million 2005 – £1 million arises from changes in tax rates and the
imposition of new taxes of the amounts of deferred tax credited to income £2 million arises from the recognition of previously unrecognised
tax losses where the entities concerned have returned to profit
deferred tax assets in respect of unutilised tax losses of £577 million 2005 – £293 million have not been recognised to the extent that they
exceed taxable profits against which these assets may be recovered
no deferred tax has been recognised in respect of unremitted earnings of £13 billion 2005 – £11 billion where the group is both able to
control dividend policy and does not anticipate dividends to be remitted in the foreseeable future
the movements in deferred tax assets and liabilities during the period are as follows
capital
allowances in
excess of
depreciation other total
deferred tax liabilities £m £m £m
at 1 april 2004 159 – 159
reclassification 20 – 20
exchange differences 1 – 1
at 31 march 2005 138 – 138
impact of ias3239 adoption note 41 – 4 4
at 1 april 2005 138 4 142
reclassification 9– 9
businesses acquired 11920
credited to income 20 – 20
exchange differences 9– 9
at 31 march 2006 137 23 160
retirement
benefit sharebased tax
obligations payments losses other total 
deferred tax assets £m £m £m £m £m
at 1 april 2004 92 – – 20 112
reclassification 4 5 – 21 20
businesses acquired – – – 19 19
chargedcredited to income 7 1 2 2 6
chargedcredited to equity 5 2 – 2 5
exchange differences – – – 1 1
at 31 march 2005 86 4 2 17 109
reclassification 11 – – 7 18
chargedcredited to income 23 2 – 3 18
chargedcredited to equity 12 2 – – 10
exchange differences 6 – – 2 8
at 31 march 2006 6882 29 107
deferred tax assets and liabilities are offset where there is a legally enforceable right of offset and there is an intention to settle the balances net 
as a result of these offsets the deferred tax balances are presented in the balance sheet as follows
31 march 31 march
2006 2005
£m £m
deferred tax liabilities 60 29
deferred tax assets 7 –
53 29 104 tate  lyle annual report 2006
28 retirement benefit obligations
a plan information
the group maintains pension plans for its operations throughout the world most of these arrangements are defined benefit pension 
schemes with retirement disability death and termination income benefits the retirement income benefits are generally a function of 
years of employment and final salary
the principal schemes are funded and their assets held in separate trusteeadministered funds the schemes are funded in line with local
practice and contributions are assessed in accordance with local independent actuarial advice the schemes operated by the group are
subject to independent actuarial valuation at regular intervals using consistent assumptions appropriate to conditions prevailing in the 
relevant country the most recent actuarial valuations of plan assets and the present value of the defined benefit obligations were carried 
out as at 31 march 2006 by independent actuaries
the group also maintains defined contribution pension schemes and some fully insured pension schemes and multiemployer 
pension arrangements
on 1 april 2002 the main united kingdom scheme was closed to new members a defined contribution pension scheme has been
established to provide pension benefits to new united kingdom employees under the projected unit method the service cost of the 
closed scheme will increase as the members approach retirement
the group’s subsidiaries in the united states provide unfunded retirement medical and life assurance benefits to their employees
the group expects to contribute approximately £50 million to its defined benefit plans in the year to 31 march 2007
b principal assumptions
the principal assumptions used for the purpose of the actuarial valuations were as follows
pension benefits
medical
year to 31 march 2006 uk us others benefits
inflation rate 28 35 2025 35
expected rate of salary increases 46 45 2040 na
expected rate of pension increases 28 00 0018 na
discount rate 49 60 4653 60
expected return on plan assets 62 78 4570 na
pension benefits
medical
year to 31 march 2005 uk us others benefits
inflation rate 28 35 2025 35
expected rate of salary increases 45 45 2040 na
expected rate of pension increases 28 00 0018 na
discount rate 54 61 4558 61
expected return on plan assets 62 80 4570 na
the following mortality tables have been used for the principal schemes for the uk pension scheme the group has used pma92co5mc
25 year age rating for male pensioners and pfa92co5mc 45 year age rating for female pensioners 2005 – pma8oco3 and pa90f
–2 year age rating for the us pension schemes the group has used gam83m for male pensioners and gam83f for female pensioners
2005 – gam83m and gam83f
the expected rates of return on individual categories of plan assets are estimated by reference to indices published by the relevant
exchanges the overall expected rate of return is calculated by weighting the individual rates in accordance with the anticipated balance 
in the plan’s investment portfolio the actual rate of return on the plan assets for the year was 146 2005 – 72 and amounted to 
£173 million 2005 – £74 million
medical cost trend rates are estimated at between 89 and 95 per annum 2005 – 100120 grading down to 5 by 2015 
if medical cost trend rates were to increase or decrease by 1 the effects are estimated as follows
2006 2005
increase decrease increase decrease
£m £m £m £m
increasedecrease in medical benefits current service and interest cost 11 1 1
increasedecrease in medical benefits obligation 87 9 8
notes to the consolidated financial statements 
continued tate  lyle annual report 2006   105
28 retirement benefit obligations continued
c amounts recognised in the income statement
pension benefits
medical
uk us others total benefits total
year to 31 march 2006 £m £m £m £m £m £m
current service cost 1043 17 1 18
past service cost – exceptional note 8 –––– 24 24
past service cost – other –1 –1 –1
charged to operating profit 10 5 3 18 23 5
interest cost 43 15 4 62 6 68
expected return on plan assets 45 15 5 65 – 65
chargedcredited to finance expense 2 – 1 3 6 3
8 5 2 15 17 2
pension benefits
medical
uk us others total benefits total
year to 31 march 2005 £m £m £m £m £m £m
current service cost 9 5 4 18 1 19
past service cost 1 – – 1 – 1
charged to operating profit 10 5 4 19 1 20
interest cost 43 14 4 61 5 66
expected return on plan assets 44 15 4 63 – 63
chargedcredited to finance expense 1 1 – 2 5 3
944 17 6 23
current service and past service costs are presented in staff costs note 9 expected return on plan assets and interest cost are presented 
in finance expense note 10 106 tate  lyle annual report 2006
28 retirement benefit obligations continued
d amounts recognised in the balance sheet
pension benefits
medical
uk us others total benefits total
at 31 march 2006 £m £m £m £m £m £m
fair value of plan assets
equities 284 133 44 461 – 461
bonds 420 73 34 527 – 527
property and other 148 26 17 191 – 191
852 232 95 1 179 – 1 179
present value of funded obligations  883 278 95 1 256 – 1 256
present value of unfunded obligations –––– 95 95
net liability recognised in the balance sheet 31 46 – 77 95 172
pension benefits
medical
uk us others total benefits total
at 31 march 2005 £m £m £m £m £m £m
fair value of plan assets
equities 314 105 31 450 – 450
bonds 386 58 28 472 – 472
property and other 50 23 17 90 – 90
750 186 76 1 012 – 1 012
present value of funded obligations  822 249 80 1 151 – 1 151
present value of unfunded obligations –––– 105 105
net liability recognised in the balance sheet 72 63 4 139 105 244
the plan assets do not include any of the group’s financial instruments nor any property occupied by or other assets used by the group
e reconciliation of movement in plan assets and liabilities
pension benefits
medical
uk us others total benefits total
liabilities £m £m £m £m £m £m
at 31 march 2004  801 256 68 1 125 85 1 210
total service cost 10 5 4 19 1 20
interest cost 43 14 4 61 5 66
actuarial lossgain 11 10 7 8 22 30
contributions paid by employees –– 11 – 1
benefits paid 43 15 3 61 7 68
exchange differences – 1 1 2 1 3
at 31 march 2005 822 249 80 1 151 105 1 256
total service cost – exceptional –––– 24 24
total service cost – other 10 5 3 18 1 19
interest cost 43 15 4 62 6 68
actuarial loss 53 3 6 62 6 68
contributions paid by employees – – 1 1 – 1
benefits paid 47 16 3 66 6 72
exchange differences 2 22 4 28 7 35
at 31 march 2006 883 278 95 1 256 95 1 351
notes to the consolidated financial statements 
continued tate  lyle annual report 2006   107
28 retirement benefit obligations continued
pension benefits
medical
uk us others total benefits total
assets £m £m £m £m £m £m
at 31 march 2004 713 189 67 969 – 969
expected return on assets 44 14 5 63 – 63
actuarial gainloss 17 7 1 11 – 11
contributions paid by employer 19 9 4 32 6 38
contribution paid by employees – – 1 1 – 1
benefits paid 43 15 4 62 6 68
exchange differences – 4 2 2 – 2
at 31 march 2005 750 186 76 1 012 – 1 012
expected return on assets 45 15 5 65 – 65
actuarial gain 84 14 10 108 – 108
contributions paid by employer 20 16 3 39 6 45
contribution paid by employees – – 1 1 – 1
benefits paid 47 16 3 66 6 72
exchange differences – 17 3 20 – 20
at 31 march 2006 852 232 95 1 179 – 1 179
f history of the plans and experience adjustments
2006 2005
£m £m
present value of defined obligation 1 351 1 256
fair value of plan assets 1 179 1 012
deficit 172 244
cumulative experience adjustments on plan liabilities – loss 98 30
cumulative experience adjustments on plan assets – gain 119 11
all experience adjustments are recognised directly in equity net of related tax see consolidated statement of recognised income 
and expense 108 tate  lyle annual report 2006
29 provisions for other liabilities and charges
insurance other
funds provisions total
£m £m £m
at 1 april 2004 29 40 69
acquisition of businesses –5757
charged to the income statement 5 2 7
utilised in the year 7 7 14
exchange differences 1 – 1
at 31 march 2005 26 92 118
chargedcredited to the income statement 5 3 2
utilised in the year 10 14 24
exchange differences 235
at 31 march 2006 23 78 101
31 march 31 march
2006 2005
£m £m
provisions are expected to be utilised as follows
within one year 30 29
after more than one year 71 89
101 118
insurance funds represent amounts provided by the group’s captive insurance subsidiary in respect of the expected level of insurance claims
other provisions include costs arising from recent restructuring initiatives and £49 million 2005 – £54 million relating to the deferred payments
arising from the sucralose realignment in 2004 estimates of the deferred consideration are revised as further and more certain information
becomes available with corresponding adjustments to goodwill see note 14 also included within other provisions are amounts provided for
claims under clauses in the disposal agreements of businesses disposed these provisions are expected to be utilised within the next few years
30 change in working capital
31 march 31 march
2006 2005
£m £m
increase in inventories 84 28
increase in receivables 67 67
decreaseincrease in payables 27 62
increase in derivative financial instruments 80 –
decreaseincrease in provisions for other liabilities and charges 17 49
decreaseincrease in retirement benefit obligations 72 2
movement during year 347 18
the above movements include the following noncash elements
exchange differences 9 1
acquisitions and disposals during the year 11 22
other items 60 79
impact of ias3239 adoption note 41 56 –
increase in working capital 211 38
other items include noncash movements in retirement benefits and derivatives and the elimination of balances within debtors and creditors
attributable to interest property plant and equipment and investments
31 cash and cash equivalents
31 march 31 march
2006 2005
£m £m
cash at bank and in hand 104 77
shortterm bank deposits 54 307
158 384
the effective interest rate on shortterm deposits was 36 2005 – 32 which have an average maturity of 4 days 2005 – 9 days
notes to the consolidated financial statements 
continued tate  lyle annual report 2006   109
32 net debt
the adoption of ifrs – and of ias32 and ias39 in particular – has altered the group’s net debt profile based on the definitions previously
reported under uk gaap  following adoption of ifrs cash and cash equivalents bank overdrafts and borrowings now reflect the effects 
of various balance sheet reclassifications as well as the inclusion of the group’s share of joint ventures’ net debt furthermore derivative
instruments used to manage the currency and interest rate risk of the group’s net debt profile which were presented as part of cash and 
cash equivalents bank overdrafts and borrowings are now presented within the classifications derivative financial assets and derivative
financial liabilities
the components of the group’s net debt profile are as follows
31 march 31 march
2006 2005
notes £m £m
noncurrent borrowings 26 537 788
current borrowings and overdrafts
1
26 491 68
debtrelated derivative instruments
2
18 12 –
current asset investments – 1
cash and cash equivalents 31 158 384
net debt 858 471
1current borrowings include £101 million 31 march 2005 – not applicable in respect of securitised receivables
2derivative financial instruments presented within assets and liabilities in the balance sheet of £80 million comprise net debtrelated instruments of £12 million and net
2nondebtrelated instruments of £68 million
movements in the group’s net debt profile are as follows
2006 2005
£m £m
balance at 31 march 471 420
impact of ias3239 adoption note 41 58 –
balance at 1 april 529 420
decreaseincrease in cash and cash equivalents in the period 214 213
cash inflow from increase in borrowings 78 258
borrowings arising on acquisitions 6 –
cash inflow from decrease in current asset investments – 13
increase in net debt resulting from cash flows 298 58
exchange differences 31 7
increase in net debt in the year 329 51
balance at 31 march 858 471
33 contingent liabilities
31 march 31 march
2006 2005
£m £m
guarantees of loans and overdrafts of subsidiaries joint ventures associates and former subsidiaries 2 20
trade guarantees 18 18
guarantees given by the group may not exceed £2 million 2005 – £22 million
other trade guarantees have been given in the normal course of business by the group at both 31 march 2006 and 31 march 2005 
these are excluded from the figures given above and are in respect of revenue and customs and the rural payments agency for 
agricultural produce bonds ecgd recourse agreements letters of credit and tender and performance bonds
the group is subject to claims and litigation generally arising in the ordinary course of its business some of which are for substantial 
amounts all such actions are strenuously defended but provision is made for liabilities that are considered likely to arise on the basis 
of current information and legal advice and after taking into account the group’s insurance arrangements
whilst there is always uncertainty as to the outcome of any claim or litigation it is not expected that claims and litigation existing at 
the balance sheet date will have a material adverse effect on the group’s financial position 110 tate  lyle annual report 2006
34 commitments
capital commitments
31 march 31 march
2006 2005
£m £m
commitments for the acquisition of property plant and equipment 28 25
operating lease arrangements
operating lease payments represent rentals payable by the group for certain of its land buildings plant and equipment
at the balance sheet date the group has outstanding commitments under noncancellable operating leases which fall due as follows
31 march 31 march
2006 2005
£m £m
within one year 27 39
in the second to fifth years inclusive 86 69
after five years 116 104
229 212
35 acquisitions
cesalpinia group
on 16 december 2005 the group acquired 100 of the issued share capital of cesalpinia foods for £32 million satisfied in cash the
cesalpinia foods group located in italy produces food ingredients specialising in solutions for dairy products soups sauces and dressings 
the fair values currently established for the acquisition are provisional due to the proximity of the date of acquisition to the group’s reporting
date the acquisition has contributed £12 million to sales and £1 million to operating profit in the period since acquisition if the acquisition 
of cesalpinia foods had been completed on the first day of the financial year group sales for the year would have been £3747 million and
group loss attributable to equity holders of the company would have been £28 million
2006
book value at fair value fair
acquisition adjustments value
notes £m £m £m
intangible assets 14 – 18 18
property plant and equipment 15 2 2 4
inventories 617
trade and other receivables 8– 8
cash and cash equivalents 3 – 3
trade and other payables 5 – 5
borrowings 1 – 1
deferred tax 27 – 8 8
71320
goodwill 14 12
32
cash consideration 31
transaction costs 1
32
goodwill has arisen on the acquisition of cesalpinia foods because of anticipated synergies that do not meet the criteria for recognition as an
intangible asset at the date of acquisition
continental custom ingredients
on 23 january 2006 the group acquired 100 of the issued share capital of continental custom ingredients ‘cci’ for £40 million the cci
group based in the united states produces food ingredients specialising in dairy stabilisers emulsifiers beverage flavours and vitamin and
mineral fortifications the fair values currently established for the acquisition are provisional due to the proximity of the date of acquisition to 
the group’s reporting date the acquisition has contributed £7 million to sales and £nil million to operating profit in the period since acquisition
if the acquisition of cci had been completed on the first day of the financial year group sales for the year would have been £3757 million and
group loss attributable to equity holders of the company would have been £27 million
notes to the consolidated financial statements 
continued tate  lyle annual report 2006   111
35 acquisitions continued
2006
book value at fair value fair
acquisition adjustments value
notes £m £m £m
intangible assets 14 – 30 30
property plant and equipment 15 9 – 9
inventories 415
trade and other receivables 4– 4
cash and cash equivalents 1– 1
trade and other payables 4 – 4
borrowings 5 – 5
deferred tax 27 – 12 12
91928
goodwill 14 12
40
cash consideration 36
transaction costs 1
cash paid 37
tax liability 3
40
goodwill has arisen on the acquisition of cci because of anticipated synergies that do not meet the criteria for recognition as an intangible
asset at the date of acquisition
france melasse
during the year the group increased its shareholding in france melasse sa by £4 million net assets of £2 million were acquired giving rise 
to £2 million goodwill on consolidation
sucralose
in april 2004 the group completed the realignment of its sucralose activities with mcneil nutritionals ‘mcneil’ a johnson  johnson
company achieved through the separation of that business into its constituent ingredient and tabletop parts the group acquired the
sucralose ingredients business and manufacturing assets from mcneil for an initial consideration of £72 million in addition there are
contingent payments treated as deferred consideration and other receipts treated as contingent assets note 14 that reflect continued
participation in the success of each party’s own ongoing sucralose activities the assets acquired upon realignment were as follows
2005
book value at fair value fair
acquisition adjustments value
notes £m £m £m
intangible assets 14 – 32 32
property plant and equipment 15 76 19 57
inventories 21 4 25
deferred tax 27 – 19 19
97 36 133
goodwill 14 15
148
cash consideration 70
transaction costs 2
tax liability 19
deferred consideration payable 57
148
tate  lyle south africa
in addition during the year ended 31 march 2005 the group acquired the remaining 80 shareholding in tate  lyle south africa for 
£3 million generating £2 million goodwill on consolidation 112 tate  lyle annual report 2006
36 post balance sheet events 
in april 2006 the group acquired the assets and intellectual property of hycail bv and its finnish subsidiary hycail finland oy for £2 million
on 23 may 2006 the group filed suit in the us district federal court for central illinois against a chinese manufacturing group based in 
hebei province as well as six importers of sucralose into the us the proceedings allege infringement of patented sucralose manufacturing
technology in respect of sucralose manufactured in china
37 related party disclosures
identity of related parties
the group has related party relationships with its subsidiaries joint ventures and associates note 39 and with key management being its
directors and executive officers no related party relationships with close family members of the group’s key management existed in the
current or prior periods
subsidiaries joint ventures and associates
transactions entered into by the company with subsidiaries and between subsidiaries as well as the resultant balances of receivables and
payables are eliminated on consolidation and are not required to be disclosed similarly the group’s share of transactions entered into by 
the company and its subsidiaries with joint ventures and between joint ventures as well as the group’s share of the resultant balances of
receivables and payables are eliminated on consolidation transactions and balances with subsidiaries and joint ventures before consolidation
eliminations and with associates are as follows
31 march 31 march
2006 2005
£m £m
sales of goods and services
– to joint ventures 26 26
purchases of goods and services
– from joint ventures 22 19
receivables
– due from joint ventures 6 8
– due from associates – 1
payables
– due to joint ventures 10 12
– due to associates 1 2
the group had no material related party transactions containing unusual commercial terms
key management
key management compensation is disclosed in note 9
38 foreign exchange rates
the following exchange rates have been applied in the translation of the financial statements of foreign subsidiaries joint ventures 
and associates
year to 31 march
2006 2005
average foreign exchange rates
us dollar £1   179 185
euro £1  € 147 147
canadian dollar £1  c 213 236
as at 31 march
2006 2005
yearend foreign exchange rates
us dollar £1   174 188
euro £1  € 143 145
canadian dollar £1  c 203 228
notes to the consolidated financial statements 
continued tate  lyle annual report 2006   113
39 main subsidiaries and investments
percentage 
of equity 
attributable to
subsidiaries based in the uk
1
type of business tate  lyle plc
tate  lyle uk limited cereal sweeteners  starches 1000
orsan sa limited holding company 804
redpath uk limited holding company 1000
the molasses trading company limited holding company 1000
tate  lyle fermentation products limited holding company 1000
tate  lyle holdings limited
2
holding company 1000
tate  lyle industrial holdings limited
2
holding company 1000
tate  lyle industries limited see below 1000
tate  lyle international finance plc
2
inhouse treasury company 1000
tate  lyle investment services limited holding company 1000
tate  lyle investments limited
2
holding company 1000
tate  lyle investments usa limited holding company 1000
tate  lyle sugar quay investments limited
2
holding company 1000
tate  lyle ventures limited
2
holding company 1000
united molasses ireland ltd
3
molasses 500
1 registered in england and wales except united molasses ireland ltd which is registered in northern ireland
2 direct subsidiaries of tate  lyle plc
3 noncoterminous yearend
main operating units of tate  lyle industries limited type of business
tate  lyle citric acid citric acid
tate  lyle thames process technology sugar technology
tate  lyle sugars europe sugar refining and trading
molasses and bulk liquid storage
percentage 
of equity 
attributable to
subsidiaries operating overseas type of business tate  lyle plc
barbados caribbean antilles molasses company limited molasses 1000
belgium tate  lyle europe nv cereal sweeteners  starches 1000
tate  lyle molasses belgium nv molasses 1000
bermuda tate  lyle management  finance limited management  finance 1000
tate  lyle reinsurance limited reinsurance 1000
british virgin islands anglo vietnam sugar investments limited holding company 750
brazil tate  lyle brasil sa
1
citric acid and sugar trading 1000
canada continental colloids limited blending 1000
tate  lyle canada limited sugar refining 1000
china orsan guangzhou gourmet powder company limited
1
glutamate producer 510 801
france tate  lyle france sas cereal sweeteners  starches 996
france melasse sa
1
molasses 1000 666
société européenne des mélasses sa
1
holding company 666
germany tate  lyle molasses germany gmbh molasses 1000
greece tate  lyle greece sa cereal sweeteners  starches 990
italy cesalpinia srl blending 1000
idea spa blending 1000
tate  lyle molasses italy srl molasses 1000
mauritius the mauritius molasses company limited molasses 667
mexico continental colloids mexicana sa blending 1000
mexama sa de cv
1
citric acid 650
tate  lyle mexico sa de cv
1
holding company 1000
morocco tate  lyle morocco sa cereal sweeteners  starches 1000
mozambique companhia exportadora de melaços molasses 1000 114 tate  lyle annual report 2006
notes to the consolidated financial statements 
continued
39 main subsidiaries and investments continued
percentage 
of equity 
attributable to
subsidiaries operating overseas continued type of business tate  lyle plc
netherlands tate  lyle netherlands bv cereal sweeteners  starches 1000
tate  lyle molasses holland bv molasses 1000
tate  lyle holland bv holding company 1000
norway tate  lyle norge as sugar distribution 1000
portugal alcântara empreendimentos sgps sa
1
holding company 1000
tate  lyle açucares portugal sa
1
sugar refining 1000
tate  lyle molasses portugal ltda molasses 1000
singapore tate  lyle singapore pte ltd high intensity sweeteners 1000
south africa tate  lyle south africa pty ltd molasses 1000
spain tate  lyle spain sa cereal sweeteners  starches 974
tate  lyle molasses spain sa molasses 1000
trinidad caribbean bulk storage and trading company ltd
1
molasses 1000
usa tate  lyle custom ingredients inc blending 1000
tate  lyle ingredients americas inc cereal sweeteners  starches 1000
tate  lyle inc cereal sweeteners  starches 1000
staley holdings inc holding company 1000
tate  lyle finance inc inhouse banking 1000
tate  lyle llc holding company 1000
tate  lyle holdings us llp holding company 1000
tate  lyle sucralose inc high intensity sweeteners 1000
tli holdings inc inhouse banking 1000
vietnam nghe an tate  lyle sugar company limited cane sugar manufacture 809 607
1 noncoterminous yearend
percentage 
of equity 
attributable to
joint ventures type of business tate  lyle plc
bermuda astaxanthin partners ltd animal nutritional ingredients 500
bosnia tate  lyle eu ltd cereal sweeteners  starches 500
bulgaria amylum bulgaria ad
1 3
cereal sweeteners  starches 969 472
colombia sucromiles sa
3
citric acid 500
czech republic eastern sugar ceska republica as
2 3
sugar beet processing 945 473
france sedalcol snc cereal processing alcohol 500
hungary hungrana kft
1 3
cereal sweeteners  starches 500 250
eastern sugar rt
2 3
sugar beet processing 1000 500
eastern sugar kft
2 3
holding company 1000 500
ireland premier molasses company ltd
3
molasses 500
italy sedamyl spa cereal sweeteners  starches 500
mexico almidones mexicanos sa
3
cereal sweeteners  starches 500
grupo industrial azucarero de occidente sa de cv
3
cane sugar manufacture 490
netherlands eastern sugar bv
3
holding company 500
eaststarch cv holding company 500
romania amylum romania sa
1 3
cereal sweeteners  starches 994 497
slovakia amylum slovakia spol sro
1 3
cereal sweeteners  starches 1000 487
eastern sugar sro
2 3
holding company 1000 500
eastern sugar slovensko as
2 3
sugar beet processing 956 478
spain compania de melazas sa
3
molasses 500
turkey amylum nisasta
1
cereal sweeteners  starches 1000 500
usa dupont staley bioproducts company llc industrial ingredients 500
the share capital held is of ordinary shares
1 share capital held by eaststarch cv
2 share capital held by eastern sugar bv
3 noncoterminous yearend tate  lyle annual report 2006   115
39 main subsidiaries and investments continued
percentage 
of equity 
attributable to
associate type of business tate  lyle plc
thailand tapioca development corporation
1
starch production 333
1 noncoterminous yearend
particulars of other subsidiaries and associated undertakings which are either not material or are dormant will be included in the forthcoming
annual return
the proportion of shares held by tate  lyle plc its subsidiaries joint ventures and associates is shown in brackets where it is different from
the percentage of equity attributable to tate  lyle plc
those entities which have noncoterminous yearends are consolidated in the group accounts using management accounts for the period to
31 march 116 tate  lyle annual report 2006
notes to the consolidated financial statements 
continued
40 adoption of international financial reporting standards
as described in note 1 these group financial statements are the first such statements prepared under ifrs
the group’s transition date was 1 april 2004 at this date certain changes were made to the group’s accounting policies under uk gaap 
in order to bring them in line with ifrs resulting in a number of adjustments to equity to reflect the effects of retrospective application of those
new policies 
in accordance with ifrs1 firsttime adoption of international financial reporting standards the group applied certain optional exemptions
and mandatory exceptions to the principle of retrospective application of ifrs as follows
■ the group has applied ifrs3 business combinations prospectively with effect from the transition date 
■ certain items of property plant and equipment were carried under uk gaap at amounts based upon valuations the group has applied
the exemption which permits a firsttime adopter to use a previous gaap revaluation of an item of property plant and equipment as
deemed cost consequently there is no adjustment to the previous carrying value under uk gaap 
■ as permitted by ifrs1 the group has recognised all cumulative actuarial gains and losses at the transition date for all employee benefit
plans falling within the scope of ias19 employee benefits this means that the net deficit on the group’s employee benefit plans is
included within net assets at 1 april 2004
■ the group has applied the ifrs1 exemption from the requirement for retrospective application of ias21 the effects of changes in foreign
exchange rates in respect of cumulative translation differences this means that the group has elected not to classify any retained
earnings arising prior to 1 april 2004 within cumulative translation differences which are therefore deemed to be zero at the transition date
■ the group has applied the ifrs1 exemption from the requirement to restate its comparative information for the effects of adopting ias32
financial instruments disclosure and presentation ias39 financial instruments recognition and measurement and ifrs4 insurance
contracts the group did not restate comparative information at 1 april 2004 or for the year to 31 march 2005 for these standards
■ as permitted under ifrs1 and ifrs2 sharebased payment the group has made no adjustment in either the income statement or
balance sheet for share option grants that occurred prior to 7 november 2002
key changes in accounting policies
the following notes highlight the main differences between uk gaap and ifrs that had a material effect on the financial statements 
of the group
a sharebased payment
under uk gaap  the group recognised a charge in respect of employee share options based on the difference between the exercise price 
of the option and the market value of a tate  lyle share at the grant date accordingly only grants made under the tate  lyle 2003
performance share plan attracted a charge under uk gaap  based on their intrinsic value under ifrs2 the group recognises a charge
reflecting the fair value of all employee share options granted since 7 november 2002 that had not vested by 1 january 2005
the uk gaap charge for the year to 31 march 2005 totalled £2 million reflecting expense for two years of option grants the impact of ifrs
on profit before taxation for the year to 31 march 2005 is an additional charge of £2 million in the year to 31 march 2006 the ifrs charge
increased to reflect expense covering three years of option grants
net assets increased by £3 million at 31 march 2005 reflecting the deferred taxation impact
b employee benefits
tate  lyle operates a number of pension and postemployment healthcare schemes and has both defined benefit and defined contribution
plans under uk gaap  the group accounted for these schemes in accordance with ssap24 which required that the expected cost be
charged to the profit and loss account so as to accrue cost over the service lives of employees on the basis of a constant percentage of earnings
under ias19 the net surplus or deficit for each defined benefit scheme is calculated based on the present value of the discounted obligation
less the fair value of the plan assets the group has elected to adopt early the amendment to ias19 issued by the iasb on 16 december
2004 which allows all actuarial gains and losses to be immediately charged or credited to equity through the statement of recognised
income and expense
the charge to the income statement under ias19 comprises the current service cost interest cost on scheme liabilities expected return 
on scheme assets past service cost and the impact of any settlements or curtailments
the impact on profit before taxation for the year to 31 march 2005 is a credit of £4 million net assets at 31 march 2005 reduced by 
£117 million
the impact on net assets reflects the reversal of prepayments and liabilities previously reported under uk gaap and recognition of assets 
and liabilities measured in accordance with ifrs including those of joint ventures adjusted for the impact of deferred taxation tate  lyle annual report 2006   117
40 adoption of international financial reporting standards continued
c intangible assets
research and development
under uk gaap  the group expensed all research and development costs as incurred under ifrs the group is required to capitalise
development costs where this expenditure meets the recognition criteria set out in ias38 intangible assets research costs continue 
to be expensed as incurred
the capitalisation under ifrs of development costs expensed during the 2005 financial year under uk gaap increased profit before taxation
under ifrs by £1 million in the year to 31 march 2005 the charge in the year to 31 march 2005 under ifrs for the amortisation of
development costs capitalised in previous periods reduces profit before taxation by £1 million compared to uk gaap  overall the impact 
on profit before tax in the year to 31 march 2005 is £nil million
the impact on net assets under ifrs reflecting the capitalisation of costs previously expensed as incurred under uk gaap  after adjusting 
for the impact of deferred taxation is an increase of £5 million at 31 march 2005
reclassification of capitalised software costs
under uk gaap  software assets were included as part of property plant and equipment whereas under ifrs unless they are integral to
another asset they are included as part of intangible assets in the balance sheet a reclassification of £4 million from property plant and
equipment to intangible assets was reflected under ifrs at 31 march 2005 there was no impact on either profit before taxation or total net
assets under ifrs
the treatment of goodwill under ifrs is discussed in the following note
d business combinations
ifrs3 business combinations introduces significant changes to the accounting for acquisitions compared to uk gaap  the international
standard requires recognition of all intangible assets that meet the ias38 recognition criteria any goodwill arising from business combinations
is not amortised under ias38 but is subject to impairment tests annually or whenever there is an indication of impairment negative goodwill
is recognised immediately in the income statement
the requirement to cease amortising goodwill has the impact of increasing profit before taxation by £9 million in the year to 31 march 2005
net assets at 31 march 2005 increased by £9 million
ifrs3 requires the group to record inventories acquired in a business combination at an amount equivalent to the selling price of those
inventories less costs of disposal and a reasonable profit allowance for the subsequent selling effort of the group uk gaap requires acquired
inventories to be recorded at cost
in the case of the sucralose realignment this leads to the group’s acquired inventory being valued at an amount £4 million higher under ifrs
than under uk gaap  resulting in an increased charge under ifrs during the year to 31 march 2005 net assets at 31 march 2005 reduced by
£4 million
e accounting for joint ventures
under uk gaap  the group accounted for joint ventures using the gross equity method showing its share of joint venture turnover as part 
of total turnover and its share of operating profit separately on the face of the profit and loss account under ifrs the group has elected 
to account for joint ventures using proportionate consolidation whereby its share of each of the assets liabilities income and expenses is
combined line by line with similar items in the group’s financial statements
while this change does not materially alter total net assets it has a significant impact on the classification of assets and liabilities within the
group’s balance sheet profit before taxation remains unchanged for all periods presented
f taxation
there is no difference in accounting for current taxation between uk gaap and ifrs
in respect of deferred taxation under uk gaap  the group recognised deferred taxation only on timing differences that arose from the
inclusion of gains and losses in tax assessments in periods different from those in which they were recognised in the financial statements
under ias12 income taxes deferred tax is provided in full using the liability method on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements deferred tax assets are recognised to the extent that it is
probable that future taxable profit will be available against which the temporary differences can be utilised
under uk gaap  the group elected to discount deferred tax as permitted by frs19 discounting of deferred tax is not permitted under ifrs
the impact on the taxation charge for the year to 31 march 2005 is a debit of £2 million reflecting the reversal of the discounting effect
recognised under uk gaap  an increase during the year under uk gaap of the goodwill on the sucralose realignment of £4 million relating 
to the unwinding of discounted deferred taxation on the realignment has been reversed
net assets at 31 march 2005 reduced by £33 million 1 april 2004 – £30 million due to the reversal of the discounting effect recognised
under uk gaap as well as the recognition of deferred taxation in respect of the unremitted earnings of certain overseas investments 118 tate  lyle annual report 2006
notes to the consolidated financial statements 
continued
40 adoption of international financial reporting standards continued
g other
events after the balance sheet date
under uk gaap  the group recognised a provision for the dividend declared within its financial statements ifrs specifically states that
dividends approved by the relevant authority after the reporting date do not meet the definition of a present obligation and should not therefore
be recognised the impact of this is to increase net assets at 31 march 2005 by £65 million 1 april 2004 – £62 million
other adjustments
other adjustments relating to sundry reclassifications and remeasurements increase net assets by £6 million at 31 march 2005
1 april 2004 – £5 million these other adjustments contain certain minor amendments and balance sheet reclassifications compared 
to the unaudited appendix contained in the annual report and accounts for the year ended 31 march 2005
cash flow
the adoption of ifrs had no material impact on the consolidated cash flow statement but led to the reclassification of certain items between
categories cash and cash equivalents presented in accordance with ifrs include cash and cash equivalents of joint ventures accounted for
under the proportionate consolidation method of £30 million at 31 march 2005 1 april 2004 – £17 million and exclude certain current asset
investments of £1 million at 31 march 2005 1 april 2004 – £14 million
financial instruments
as noted above the group has applied the ifrs1 exemption from the requirement to restate its comparative information for the effects of
adopting ias32 financial instruments disclosure and presentation ias39 financial instruments recognition and measurement and ifrs4
insurance contracts therefore the group adopted these standards with effect from 1 april 2005 tate  lyle annual report 2006   119
40 adoption of international financial reporting standards continued
reconciliations of uk gaap financial information to ifrs
consolidated balance sheet as at 1 april 2004
sharebased employee intangible business joint
uk gaap in payments benefits assets combinations ventures taxation other
ifrs format note a note b note c note d note e note f note g ifrs
£m £m £m £m £m £m £m £m £m
assets
noncurrent assets
intangible assets 136 – – 11 – 9 – – 156
property plant and equipment 1 062 – – 4 – 132 – 7 1 197
investments in associates 3 ––––––– 3
investments in joint ventures 194–––– 194 – – –
trade and other receivables 38 – 31 ––––– 7
other noncurrent assets 19–––– 16–– 35
1 452 – 31 7 – 37 – 7 1 398
current assets
inventories 273–––– 72 – 1 344
trade and other receivables 299–––– 52–– 351
cash and cash equivalents 42–––– 17 – 98 157
current asset investments 112–––––– 98 14
726–––– 141 – 1 866
total assets 2 178 – 31 7 – 104 – 6 2 264
shareholders’ equity
capital and reserves attributable to the company’s equity holders
share capital and share premium 507 1 –––––– 506
other reserves 118–––––– 7 111
retained earnings 326 1 99 5 – – 30 74 277
951 – 99 5 – – 30 67 894
minority interest 27–––– 2–– 29
total shareholders’ equity 978 – 99 5 – 2 30 67 923
liabilities
noncurrent liabilities
trade and other payables 5 –––– 3–– 8
borrowings 512–––– 12–– 524
deferred tax liabilities 65 – 52 2 – 2 30 – 47
retirement benefit obligations 121 – 120 – – 1 – – 242
provisions for other liabilities 
and charges 60–––– 9–– 69
763 –68 2 –2730 – 890
current liabilities
trade and other payables 370–––– 33 – 61 342
current tax liabilities 37–––– 5–– 42
borrowings and overdrafts 30–––– 37–– 67
437–––– 75 – 61 451
total liabilities 1 200 – 68 2 – 102 30 61 1 341
total liabilities and equity 2 178 – 31 7 – 104 – 6 2 264 120 tate  lyle annual report 2006
notes to the consolidated financial statements 
continued
40 adoption of international financial reporting standards continued
reconciliations of uk gaap financial information to ifrs
consolidated balance sheet as at 31 march 2005
sharebased employee intangible business joint
uk gaap in payments benefits assets combinations ventures taxation other
ifrs format note a note b note c note d note e note f note g ifrs
£m £m £m £m £m £m £m £m £m
assets
noncurrent assets
intangible assets 173 – – 11 5 9 4 – 194
property plant and equipment 1 111 – – 4 – 150 – 7 1 264
investments in associates 2 –––– 1–– 3
investments in joint ventures 211–––– 211 – – –
trade and other receivables 60 – 51 – – 4 – – 13
other noncurrent assets 16––––––– 16
1 573 – 51 7 5 47 4 7 1 490
current assets
inventories 288–––– 85 – 1 372
trade and other receivables 361–––– 56 – 1 418
cash and cash equivalents 59–––– 30 – 295 384
current asset investments 296–––––– 295 1
1 004–––– 171–– 1 175
total assets 2 577 – 51 7 5 124 4 7 2 665
shareholders’ equity
capital and reserves attributable to the company’s equity holders
share capital and share premium 517––––––– 517
other reserves 117–––––– 7 110
retained earnings 384 3 117 5 5 1 33 78 324
1 018 3 117 5 5 1 33 71 951
minority interest 29–––– 3–– 32
total shareholders’ equity 1 047 3 117 5 5 2 33 71 983
liabilities
noncurrent liabilities
trade and other payables 8 ––––––– 8
borrowings 783–––– 5–– 788
deferred tax liabilities 53 3 58 2 – 6 29 – 29
retirement benefit obligations 116 – 124 – – 4 – – 244
provisions for other liabilities 
and charges 112–––– 7– 1 118
1 072 3 66 2 – 22 29 1 1 187
current liabilities
trade and other payables 416–––– 51 – 63 404
current tax liabilities 19–––– 4–– 23
borrowings and overdrafts 23–––– 45–– 68
458–––– 100 – 63 495
total liabilities 1 530 3 66 2 – 122 29 64 1 682
total liabilities and equity 2 577 – 51 7 5 124 4 7 2 665 tate  lyle annual report 2006   121
40 adoption of international financial reporting standards continued
reconciliations of uk gaap financial information to ifrs
consolidated income statement for the year to 31 march 2005
sharebased employee intangible business joint
uk gaap in payments benefits assets combinations ventures taxation other
ifrs format note a note b note c note d note e note f note g ifrs
£m £m £m £m £m £m £m £m £m
sales 3 001–––– 338–– 3 339
operating profit 181 2 6 – 5 38 – 1 229
share of net result of associates 
and joint ventures 38–––– 38 – – –
interest income 34––––––– 34
finance expense 56 – 2 ––––– 58
profit before tax 197 2 4 – 5 – – 1 205
income tax expense 53 1 1 – – – 2 – 55
profit for the year 144 1 3 – 5 – 2 1 150
attributable to
equity holders of the company 140 1 3 – 5 – 2 1 146
minority interest 4 ––––––– 4
144 1 3 – 5 – 2 1 150
earnings per share attributable 
to the equity holders of the company pence pence pence pence pence pence pence pence pence
basic 297 02 06 – 11 – 04 02 310
diluted 294 02 06 – 10 – 04 02 306 122 tate  lyle annual report 2006
41 adoption of ias32 and ias39
the group adopted ias32 and ias39 from 1 april 2005 the effects of the changes in accounting policies required on the group’s balance
sheet at 1 april 2005 are summarised below 
i under uk gaap the group reported other noncurrent assets and current asset investments of £29 million and £1 million respectively
these comprised equity investments now reclassified as availableforsale financial assets and loans and noncurrent receivables 
now reclassified as trade and other receivables
■ availableforsale financial assets are made up of noncurrent recievables previously carried at £15 million and current asset
investments of £1 million a fair value adjustment resulted in an increase of £1 million which also increases other reserves by 
the same amount
■ trade and other receivables are made up of other noncurrent assets carried at £10 million
in addition to the reclassifications described above a further £4 million previously reported as other noncurrent assets has been
reclassified as derivative financial instruments
ii certain of the group’s derivative financial instruments were not carried at fair value under uk gaap  ifrs also requires separate
presentation of derivative financial instruments on the balance sheet reclassifications from other financial assets and liabilities and
accrued interest balances have been made along with remeasurement adjustments as reflected in the restated consolidated 
balance sheet
iii the group’s food  industrial ingredients europe business operates a securitisation programme under which it receives cash from selling
trade receivables under uk gaap  the amounts received under this facility of £45 million were linked in presentation to the original
amounts receivable under ias39 the amounts received are shown as borrowings trade and other receivables are reduced for
reclassification of derivative financial instruments of £14 million
iv cash and cash equivalents have been adjusted for the reclassification of currency swap contracts of £9 million
v cumulative preference shares of £2 million have been reclassified as noncurrent borrowings
vi other reserves are adjusted by £1 million for unrealised fair value adjustments arising on availableforsale financial assets as explained 
in note i a further reserve for deferred net gains on cash flow hedges of £11 million has been recorded in other reserves net of
attributable deferred taxation of £4 million
vii noncurrent and current trade and other payables are adjusted for reclassification of derivative financial instruments of £5 million and
£35 million respectively including £11 million relating to commodity trading contracts as explained in note ii
viii noncurrent borrowings are adjusted for reclassification of derivative financial instruments of £13 million as explained in note ii and 
for cumulative preference shares of £2 million as explained in note v
ix current borrowings are adjusted for reclassification of derivative financial instruments of £21 million including £11 million relating to
reclassified interest accruals as explained in note ii and for securitised receivables of £45 million as explained in note iii
x retained earnings are increased by £1 million net as a result of remeasurement differences arising on financial instruments at 1 april 2005
under uk gaap  trading instruments were markedtomarket using externally derived market prices gains or losses were recognised
immediately in the profit and loss account for hedging instruments the group applied a form of hedge accounting which enabled changes 
in the market value of financial instruments to be matched in the profit and loss account with recognition of the underlying hedged exposure
notes to the consolidated financial statements 
continued tate  lyle annual report 2006   123
41 adoption of ias32 and ias39 continued
reconciliations of uk gaap financial information to ifrs
consolidated balance sheet as at 1 april 2005 reflecting the adoption of ias32 and ias39
effects of 
ias3239 
31 march 2005 adoption 1 april 2005
notes £m £m £m
assets
noncurrent assets
intangible assets 194 – 194
property plant and equipment 1 264 – 1 264
investments in associates 3– 3
availableforsale financial assets i – 17 17
derivative financial instruments ii – 33 33
trade and other receivables i 13 3 10
other noncurrent assets i 16 16 –
1 490 31 1 521
current assets
inventories 372 – 372
trade and other receivables iii 410 31 441
current tax assets 8– 8
derivative financial instruments ii – 35 35
current asset investments i 1 1 –
cash and cash equivalents iv 384 9 375
1 175 56 1 231
total assets 2 665 87 2 752
shareholders’ equity
capital and reserves attributable to the company’s equity holders
share capital and share premium v 517 2 515
other reserves vi 110 8 118
retained earnings x 324 1 325
951 7 958
minority interest 32 – 32
total shareholders’ equity 983 7 990
liabilities
noncurrent liabilities
trade and other payables vii 8 5 3
borrowings viii 788 15 803
derivative financial instruments ii – 20 20
deferred tax liabilities vi 29 4 33
retirement benefit obligations 244 – 244
provisions for other liabilities and charges 118 – 118
1 187 34 1 221
current liabilities
trade and other payables vii 404 35 369
current tax liabilities 23 – 23
borrowings and overdrafts ix 68 66 134
derivative financial instruments ii – 15 15
495 46 541
total liabilities 1 682 80 1 762
total liabilities and equity 2 665 87 2 752 124 tate  lyle annual report 2006
independent auditors’ report to the members of 
tate  lyle plc parent company financial statements 
we have audited the parent company
financial statements of tate  lyle plc 
for the year ended 31 march 2006 which
comprise the parent company balance
sheet and the notes to the parent company
financial statements these parent company
financial statements have been prepared
under the accounting policies set out therein
we have also audited the information in the
directors’ remuneration report that is
described as having been audited
we have reported separately on the group
financial statements of tate  lyle plc for
the year ended 31 march 2006
respective responsibilities of directors
and auditors
the directors’ responsibilities for preparing
the annual report the directors’
remuneration report and the parent
company financial statements in accordance
with applicable law and united kingdom
accounting standards united kingdom
generally accepted accounting practice 
are set out in the statement of directors’
responsibilities
our responsibility is to audit the parent
company financial statements and the part
of the directors’ remuneration report to 
be audited in accordance with relevant 
legal and regulatory requirements and
international standards on auditing uk 
and ireland this report including the
opinion has been prepared for and only 
for the company’s members as a body 
in accordance with section 235 of the
companies act 1985 and for no other
purpose we do not in giving this opinion
accept or assume responsibility for any other
purpose or to any other person to whom this
report is shown or into whose hands it may
come save where expressly agreed by our
prior consent in writing
we report to you our opinion as to whether
the parent company financial statements
give a true and fair view and whether the
parent company financial statements and the
part of the directors’ remuneration report
to be audited have been properly prepared
in accordance with the companies act
1985 we also report to you as to whether 
in our opinion the information given in the
directors’ report is consistent with the
parent company financial statements 
the information given in the directors’
report includes that specific information
presented in the operating and financial
review that is cross referred from the
business review section of the directors’
report we also report to you if in our
opinion the company has not kept proper
accounting records if we have not received
all the information and explanations we
require for our audit or if information
specified by law regarding directors’
remuneration and other transactions 
is not disclosed
we read other information contained in
the annual report and consider whether
it is consistent with the audited parent
company financial statements the other
information comprises only the directors’
report the unaudited part of the
directors’ remuneration report the
chairman’s statement the chief
executive’s review the operating and
financial review and the corporate
governance statement we consider the
implications for our report if we become
aware of any apparent misstatements 
or material inconsistencies with the
parent company financial statements
our responsibilities do not extend to 
any other information
basis of audit opinion
we conducted our audit in accordance 
with international standards on auditing 
uk and ireland issued by the auditing
practices board an audit includes
examination on a test basis of evidence
relevant to the amounts and disclosures 
in the parent company financial statements
and the part of the directors’ remuneration
report to be audited it also includes an
assessment of the significant estimates and
judgements made by the directors in the
preparation of the parent company financial
statements and of whether the accounting
policies are appropriate to the company’s
circumstances consistently applied and
adequately disclosed
we planned and performed our audit so as
to obtain all the information and explanations
which we considered necessary in order to
provide us with sufficient evidence to give
reasonable assurance that the parent
company financial statements and the part
of the directors’ remuneration report to be
audited are free from material misstatement
whether caused by fraud or other irregularity
or error in forming our opinion we also
evaluated the overall adequacy of the
presentation of information in the parent
company financial statements and the part
of the directors’ remuneration report to 
be audited
opinion
in our opinion
■ the parent company financial statements
give a true and fair view in accordance
with united kingdom generally accepted
accounting practice of the state of the
company’s affairs as at 31 march 2006 
■ the parent company financial statements
and the part of the directors’ remuneration
report to be audited have been properly
prepared in accordance with the
companies act 1985 and
■ the information given in the directors’
report is consistent with the financial
statements
pricewaterhousecoopers llp
chartered accountants and registered
auditors
1 embankment place
london wc2n 6rh
24 may 2006 tate  lyle annual report 2006   125
31 march 2005
31 march 2006 restated
notes £m £m
fixed assets
intangible assets 2 24 28
tangible assets 3 2 2
investments in subsidiary undertakings 4 2 005 1 837
2 031 1 867
current assets
debtors – due within one year 5 39 26
debtors – due after more than one year 5 12 14
51 40
creditors – due within one year 6 234 116
net current liabilities 183 76
total assets less current liabilities 1 848 1 791
creditors – due after more than one year 7 453 373
provisions for liabilities and charges 9 1 1
total net assets 1 394 1 417
capital and reserves
called up share capital 12 122 124
share premium account 13 400 393
profit and loss account 13 872 900
shareholders’ funds including nonequity interests 1 394 1 417
the parent company financial statements were approved by the board of directors on 24 may 2006 and signed on its behalf by
sir david lees iain ferguson simon gifford directors
registered no 76535
the notes on pages 126 to 132 form part of these parent company financial statements
parent company balance sheet 126 tate  lyle annual report 2006
notes to the parent company financial statements 
1 parent company accounting policies
accounting basis 
the parent company financial statements are prepared under the historical cost convention except as disclosed below in accordance with
the companies act 1985 and applicable uk accounting standards as permitted by section 230 of the companies act 1985 the company’s
profit and loss account and statement of total recognised gains and losses are not presented in these financial statements the tate  lyle
plc consolidated financial statements for the year ended 31 march 2006 contain a consolidated statement of cash flows consequently the
company has taken the exemption available in frs1 revised 1996 cash flow statements and has not presented its own cash flow statement
changes in accounting policies
the company has adopted the following new standards in the year ended 31 march 2006 frs1 retirement benefits frs20 sharebased
payment early adopted frs21 events after the balance sheet date frs23 the effects of changes in foreign exchange rates frs25
financial instruments disclosure and presentation frs26 financial instruments measurement and frs28 corresponding amounts the
adoption of each of these standards represents a change in accounting policy and the comparative figures have been restated accordingly
except where the exemption from restating comparatives has been taken details of the effect of prior year adjustments are shown in note 14
intangible fixed assets
patents and other intellectual property are shown at historical cost less accumulated amortisation and impairment losses where the assets
are acquired as part of a business combination historical cost is based on their fair values as at the date of the combination amortisation 
of the assets is recognised on a straightline basis over the period of their expected benefit not exceeding 20 years
tangible fixed assets
depreciation is provided on a straightline basis to write off the cost of tangible fixed assets over the estimated useful life the tangible fixed
assets comprise plant and machinery which is depreciated over a period of 3 to 28 years impairment reviews are undertaken if there are
indications that the carrying values may not be recoverable
investments
fixed asset investments are included in the balance sheet at cost less any provision for impairment
leases
operating lease costs are charged to profit as incurred
research and development
all expenditure on research and development is charged to profit as incurred
retirement benefits
the company contributes to the group pension plan operated in the uk details of the plan are included within note 28 of the group financial
statements as permitted under frs17 retirement benefits the plan is accounted for as a defined contribution plan as the employer cannot
identify its share of the underlying assets and liabilities of the plan the employer’s contributions relate to the current service period only
deferred tax
deferred tax is recognised on a full provision basis on timing differences between the recognition of gains and losses in the accounts and 
their recognition for tax purposes that have arisen but not reversed at the balance sheet date deferred tax is not recognised on permanent
differences or on timing differences arising on unremitted profits of overseas subsidiaries deferred tax assets are recognised only to the extent
that it is considered more likely than not that there will be sufficient future taxable profits to permit tax relief of the underlying timing differences 
foreign currencies
assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling on the last day of the financial period 
the closing rate and other profits and losses on exchange are credited or charged to the profit and loss account
sharebased compensation
the company operates a number of equitysettled sharebased compensation plans the fair value of employee services received in
exchange for the grant of the options is recognised as an expense the total amount to be expensed over the vesting period is determined by
reference to the fair value of the options granted excluding the impact of any nonmarket vesting conditions for example earnings targets
nonmarket vesting conditions are included in assumptions about the number of options that are expected to become exercisable at each
balance sheet date for options granted with nonmarket vesting conditions the company revises its estimates of the number of options that
are expected to become exercisable it recognises the impact of the revision of original estimates if any in the profit and loss account and a
corresponding adjustment to equity the proceeds received net of any directly attributable transaction costs are credited to share capital and
share premium when the options are exercised tate  lyle annual report 2006   127
2 intangible fixed assets
patents
£m
cost
at 1 april 2005 and 31 march 2006 32
amortisation
at 1 april 2005 4
charge for the year 4
at 31 march 2006 8
net book value at 31 march 2006 24
net book value at 31 march 2005 28
3 tangible fixed assets
the net book value of tangible fixed assets of £2 million 2005 – £2 million comprises plant and machinery 
4 investments in subsidiary undertakings 
shares in loans to
subsidiary subsidiary 
undertakings undertakings total
£m £m £m
at 1 april 2005 1 608 229 1 837
additions 132 – 132
exchange differences 33 3 36
at 31 march 2006 1 773 232 2 005
shares in subsidiary undertakings are stated at cost or earliest ascribed value less amounts provided of £70 million 2005 – £70 million
loans to subsidiary undertakings are stated net of amounts provided of £9 million 2005 – £9 million 128 tate  lyle annual report 2006
5 debtors
31 march
31 march 2005
2006 restated
£m £m
due within one year
uk taxation 31 20
other debtors 7 5
prepayments and accrued income 1 1
39 26
due after more than one year
deferred taxation note 8 12 14
6 creditors – due within one year
31 march
31 march 2005
2006 restated
£m £m
borrowings
amounts owed to subsidiary undertakings 190 68
other creditors
owed to subsidiary undertakings 12 7
other creditors 1 2
accruals and deferred income 31 39
234 116
7 creditors – due after more than one year
31 march 31 march
2006 2005
£m £m
borrowings
amounts owed to subsidiary undertakings 451 373
preference shares 2 –
453 373
preference shares of £2 million were reclassified to borrowings on adoption of frs25 as set out in note 13
31 march 31 march
2006 2005
£m £m
maturity of borrowings
over one year and up to two years – 120
over five years 453 253
453 373
notes to the parent company financial statements
continued tate  lyle annual report 2006   129
8 deferred taxation
deferred taxation charged to profit in the year was £2 million
9 provisions for liabilities and charges
provisions for liabilities and charges of £1 million 2005 – £1 million are expected to be utilised within the next 12 months
10 contingent liabilities
31 march 31 march
2006 2005
£m £m
loans and overdrafts of subsidiaries joint ventures associates
and former subsidiaries guaranteed 739 789
guarantees given in respect of loans and overdrafts given by tate  lyle plc may not exceed £1821 million 2005 – £1702 million
other trade guarantees have been given in the normal course of business by tate  lyle plc at both 31 march 2006 and 31 march 2005
these are excluded from the figures given above and are in respect of revenue and customs and the rural payments agency for agricultural
produce bonds ecgd recourse agreements letters of credit and tender and performance bonds 130 tate  lyle annual report 2006
notes to the parent company financial statements
continued
11 financial commitments
annual payments made by the company in the year ended 31 march 2006 in respect of operating leases which expire after more than
five years 2005 – more than five years were £3 million 2005 – £3 million
12 share capital
authorised equity share capital
31 march
2006 2005
£m £m
790424000 ordinary shares of 25p each 2005 – 790424000 198 198
allotted called up and fully paid equity share capital
31 march 31 march
2006 2005
shares £m shares £m
at 1 april 486 471 879 122 482 865 893 121
allotted under share option schemes 2 268 237 – 3 605 986 1
at 31 march 488 740 116 122 486 471 879 122
as set out in note 13 preference shares have been reclassified to borrowings at 1 april 2005 on adoption of frs25
13 reconciliation of movements in shareholders’ funds
total
ordinary preference share share profit and
shares shares capital premium loss account total
£m £m £m £m £m £m
at 31 march 2005 122 2 124 393 838 1 355
prior year adjustments note 14 –––– 62 62
at 31 march 2005 restated 122 2 124 393 900 1 417
adoption of frs25 note a – 2 2 – – 2
at 1 april 2005 122 – 122 393 900 1 415
proceeds from shares issued – – – 7 9 16
sharebased payments –––– 2 2
ordinary dividend paid –––– 93 93
profit for the year –––– 54 54
at 31 march 2006 122 – 122 400 872 1 394
a adoption of frs25 comprises the reclassification of £2 million of preference share capital to borrowings
the profit for the year before dividends dealt with in the financial statements of the company amounted to £54 million 2005 – £770 million
profit restated
the remaining amount available for the payment of dividends by the company at 31 march 2006 was £872 million tate  lyle annual report 2006   131
14 prior year adjustments
the company has adopted the following accounting standards in the year ended 31 march 2006 frs17 retirement benefits frs20
sharebased payments early adopted frs21 events after the balance sheet date frs23 the effects of changes in foreign exchange
rates frs25 financial instruments disclosure and presentation frs26 financial instruments measurement
in addition the company has taken advantage of the option in frs19 deferred tax not to discount deferred tax assets and liabilities 
prior year balances have been restated accordingly
the impact of these changes on the company’s balance sheet at 31 march 2005 is shown below
effect on 
31 march adoption of 31 march 2005
2005 new standards restated
notes £m £m £m
fixed assets
intangible assets 28 – 28
tangible assets 2– 2
investments in subsidiary undertakings 1 837 – 1 837
1 867 – 1 867
current assets
debtors – due within one year 26 – 26
debtors – due after more than one year a 17 3 14
43 3 40
creditors – due within one year b 181 65 116
net current assetsliabilities 138 62 76
total assets less current liabilities 1 729 62 1 791
creditors – due after more than one year c 373 – 373
provisions for liabilities and charges 1 – 1
total net assets 1 355 62 1 417
capital and reserves
called up share capital 124 – 124
share premium account 393 – 393
profit and loss account 838 62 900
shareholders’ funds 1 355 62 1 417
a debtors – due after more than one year reduce by £3 million comprising a reduction of £6 million on adoption of frs17 representing the
reversal of a previously recognised pension prepayment and related deferred tax and an increase of £3 million due to the cessation of
discounting of deferred tax balances
b creditors – due within one year reduce by £65 million due to the adoption of frs21 and represents the reversal of the accrual for the final
dividend for the year ended 31 march 2005 which is no longer recognised as a liability until it is approved by the company’s shareholders
c the company has taken advantage of the exemptions in frs25 and frs26 not to restate comparative information the impact of these
standards which were therefore adopted on 1 april 2005 is shown in note 13
the impact of adopting the remaining standards on the parent company balance sheet at 31 march 2005 was not significant
15 related parties
as permitted by frs8 related party disclosures disclosure of related party transactions with other companies controlled by tate  lyle plc
is not provided and there were no reportable transactions with other related parties 132 tate  lyle annual report 2006
notes to the parent company financial statements
continued
16 profit and loss account disclosures
as permitted by section 230 of the companies act 1985 the company has not presented its own profit and loss account
the company’s audit fee for the year ended 31 march 2006 was £05 million 2005 – £04 million
the company employed 85 staff including directors 2005 – 82 and the total staff costs are shown below
year to 31 march
2006 2005
£m £m
wages and salaries 12 9
social security 1 1
retirement benefits 2 2
15 12
directors’ emoluments disclosures are provided in the directors’ remuneration report on pages 54 to 64 of the tate  lyle plc annual report
17 dividends
year to 31 march
2006 2005
dividends paid on ordinary equity shares
– final paid £million 65 62
– interim paid £million 28 27
total dividend paid £million 93 89
the total ordinary dividend is 200p 2005 – 194p made up as follows
– interim dividend paid 59p 57p
– final dividend proposed 141p 137p
200p 194p
the final dividend proposed for the year which has not been recognised as a liability will be paid subject to approval by shareholders at the
company’s annual general meeting on 19 july 2006 to shareholders who are on the register of members on 30 june 2006 tate  lyle annual report 2006   133
addresses and telephone numbers
relevant addresses and telephone numbers are given on page 137
dividends on ordinary shares
two payments were made during the tax year 200506 as follows
payment date dividend description dividend per share
3 august 2005 final 2005 137p
10 january 2006 interim 2006 59p
services
single company individual savings account isa
tate  lyle’s ordinary shares can be held in a single company isa for information please call lloyds tsb registrars isa helpline on 
0870 24 24 244
shareholding enquiries
queries on shareholdings should be addressed to tate  lyle’s registrar lloyds tsb registrars see page 137 for contact details
tate  lyle’s website wwwtateandlylecom and share price information
tate  lyle’s website provides direct links to other group company sites and to sites providing financial and other information relevant to the
company the share price is available on the website with a 20minute delay similar information is available on many specialist websites on
teletext and in several national newspapers
capital gains tax
the market values on 31 march 1982 for the purposes of indexation up to april 1998 in relation to capital gains tax of tate  lyle plc shares
then in issue were
ordinary shares of £1 each 20100p
equivalent value per ordinary share of 25p 5025p
6
1
⁄2 cumulative preference shares 4350p
tate  lyle american depositary shares adss
the company’s shares trade in the united states on the nasdaq over the counter otc market in the form of adss and these are
evidenced by american depositary receipts adrs the shares are traded under the symbol tatyy each ads is equivalent to four 
ordinary shares for more information contact the bank of new york at the address given on page 137
financial calendar dates are provisional except those in italics
2006 annual general meeting 19 july 2006
announcement of interim results for six months to 30 september 2006 2 november 2006
announcement of preliminary results for year ended 31 march 2007 24 may 2007
2007 annual general meeting 18 july 2007
dividend on ordinary shares 2006 final 2007 interim 2007 final
announced 25 may 2006 2 november 2006 24 may 2007
payment date 27 july 2006
1
9 january 2007 26 july 2007
1
1 subject to the approval of shareholders
dividends on 6
1
⁄ 2 cumulative preference shares 
paid 31 march and 30 september
information for investors 134 tate  lyle annual report 2006
uk gaap
2
ifrs
share information 1997 1998 1999 2000 2001 2002 2003 2004
1
2005
34
2006
4
pence per 25p ordinary share
closing share price 4340 5220 4010 2270 2288 3492 2990 2972 5315 5710
earnings – basic 188 311 304 243 500 247 278 327 310 63
basic before amortisation
and exceptional items 405 357 285 300 148 222 331 340 377 424
earnings – diluted 197 306 304 242 498 246 277 326 306 63
diluted before amortisation 
and exceptional items 383 351 284 299 148 221 330 339 374 417
dividend 170170172178178178183188194 200
closing market capitalisation £ million 1 968 2 378 1 832 1 039 1 102 1 683 1 441 1 435 2 586 2 791
including convertible redeemable
preference shares £ million 36 32 – –––––– –
business ratios
interest cover – times 45 40 30 36 23 33 76 93 116 99
profit before interest exceptional 
items and amortisation divided 
by net finance expense
5
gearing 84 92 84 64 91 59 45 40 48 91
net borrowings as a percentage of 
total net assets
net margin 56 64 59 70 43 53 78 77 83 88
profit before interest exceptional items and
amortisation as a percentage of sales
return on net operating assets 133 137 119 135 85 105 142 154 188 189
profit before interest and exceptional 
items as a percentage of average 
net operating assets
dividend cover – times
basic earnings per share after exceptional items 
and amortisation divided by dividends per share 11 18 18 14 28 14 15 17 16 03
basic earnings per share before exceptional items 
and amortisation divided by dividends per share 24 21 17 17 08 12 18 18 19 21
1 comparative figures for 2004 have been restated to reflect the adoption of uitf38 accounting for esop trusts
2 comparative figures for 1997 to 2004 have not been restated to reflect the adoption of ifrs from 1 april 2004 the nature of the ifrs transition adjustments 
is discussed in note 40 of the group financial statements
3 comparative figures for 2005 have not been restated to reflect the adoption of ias3239 from 1 april 2005 the nature of the ias3239 transition adjustments 
is discussed in note 41 of the group financial statements
4 ‘amortisation’ relates to the amortisation of intangible assets arising on acquisition of businesses
5 under uk gaap interest cover was calculated using only the profit before interest exceptional items and amortisation and the net finance expense of tate  lyle plc
and its subsidiaries
in 2000 the group changed its accounting reference date from 30 september to 31 march resulting in an extended accounting period of 
18 months to march 2000 
results presented above are for years to 31 march and have been calculated using the group’s published interim and full year financial
statements
in order to show the underlying trend of dividend payments dividends shown in the above table have been adjusted as follows
a to exclude from the dividend for the year to march 1997 the foreign income dividend enhancement of 1325p per share included in the
interim 1997 dividend and
b to exclude from the dividend of 269p per share paid in respect of the 18 months to march 2000 the final dividend of 91p per share paid
in respect of the transitional sixmonth period to march 2000 with the effect that the dividend of 178p per share for the year to march
2000 shown above is presented on an annualised basis
ten year review financial years to march tate  lyle annual report 2006   135
uk gaap
2
ifrs
employment of capital 1997 1998 1999 2000 2001 2002 2003 2004
1
2005
34
2006
4
£m £m £m £m £m £m £m £m £m £m
intangible assets and
property plant and equipment 1 764 1 821 1 892 1 854 1 860 1 699 1 565 1 414 1 458 1 472
other noncurrent assets – – – ––––– 3 49
working capital 326 319 288 211 307 114 94 107 37 328
net operating assets 2 090 2 140 2 180 2 065 2 167 1 813 1 659 1 521 1 498 1 849
net borrowings 955 1 030 986 805 963 639 471 388 471 858
net liabilitiesassets for dividends and tax 4 7 23 4 142 93 144 155 44 51
total net assets 1 131 1 117 1 171 1 264 1 062 1 081 1 044 978 983 940
capital employed
called up share capital 116 117 117 117 123 123 123 123 124 122
reserves 844 846 904 984 885 920 889 828 827 783
960 963 1 021 1 101 1 008 1 043 1 012 951 951 905
minority interests 171 154 150 163 54 38 32 27 32 35
1 131 1 117 1 171 1 264 1 062 1 081 1 044 978 983 940
profit summary
sales 5 047 4 560 4 359 4 090 4 146 3 944 3 167 3 167 3 339 3 720
group operating profit 
before exceptional items and amortisation 253 260 220 237 156 180 219 214 278 328
amortisation – – – – 5 8 8 8 4 5
operating exceptional items 83 9 5 – – – 39 – 45 248
group operating profit 170 251 215 237 151 172 172 206 229 75
share of profits of joint ventures 
and associates 30 30 37 47 29 36 35 43 – –
total operating profit 200 281 252 284 180 208 207 249 229 75
nonoperating exceptional items
writedowns on planned sale of business – – – 50 307 – 12 – – –
profitloss on sale or termination 
of businesses – – – 25 9 5 19 6 – –
profitloss on sale of fixed assets – – 18 7 – 13 1 – – –
profitloss before net finance expense 200 281 270 266 118 216 213 243 229 75
net finance expense 56 65 73 65 67 55 29 23 24 33
net finance expenseincome of
joint ventures and associates 5 10 13 10 5 2 3 4 – –
profitloss before taxation 139 206 184 191 190 159 187 224 205 42
taxation 39 60 49 63 40 39 57 69 55 69
profitloss after taxation 100 146 135 128 230 120 130 155 150 27
minority interests 14 7 4 17 6 2 2 1 4 3
profitloss for the period 86 139 139 111 236 118 132 154 146 30
profit before tax exceptional items and 
amortisation 222 215 171 209 113 159 228 227 254 295
1 comparative figures for 2004 have been restated to reflect the adoption of uitf38 accounting for esop trusts
2 comparative figures for 1997 to 2004 have not been restated to reflect the adoption of ifrs from 1 april 2004 the nature of the ifrs transition adjustments 
is discussed in note 40 of the group financial statements
3 comparative figures for 2005 have not been restated to reflect the adoption of ias3239 from 1 april 2005 the nature of the ias3239 transition adjustments 
is discussed in note 41 of the group financial statements
4 ‘amortisation’ relates to the amortisation of intangible assets arising on acquisition of businesses
ten year review financial years to march
continued 136 tate  lyle annual report 2006
acquisitions 110
adoption of ias32 and ias39 122
ads investors 133
almex 27
amortisation 2 26 86
annual general meeting 46
associates 90 115
astaxanthin 27
audit committee 51
auditors’ remuneration 81
auditors’ report 66
availableforsale financial assets 91
basis of preparation 2 26 71
board committees 50
borrowings 100
capital gains tax information 133
cash and cash equivalents 108
cash flow and debt 32
cesalpinia foods 8 10 28 110
chairman’s committee 50
chairman’s statement 6
change in working capital 108
chief executive’s review 8
code of conduct 39
combined code compliance 48
commitments 110
communities 11 39
consolidated balance sheet 69
consolidated cash flow statement 70
consolidated income statement 67
consolidated statement of changes 
in shareholders’ equity 96
consolidated statement of recognised 
income and expense 68
continental custom 
ingredients 8 10 27 110
contingent liabilities 109
control and direction of treasury 33
corporate governance 46 48
corporate social responsibility 7 35
credit risk 34
critical accounting estimates 
and judgements 78
deferred tax 102
derivative financial instruments 34 92
dilution 64 84
directors’ biographies 42
directors’ emoluments 60
directors’ interests in 
tate  lyle shares 64
directors’ longterm incentives 61
directors’ pension provision 63
directors’ remuneration report 54
directors’ report 46
directors’ responsibilities 47
directors’ service contracts 58
dividend 7 32 46 85
dividend cover 7 26 134
donations 47
earnings per share 84
eastern sugar 31
eaststarch 28
employee benefit trust 64
employee numbers 23 82
employee share option schemes 62 97
employees 23 38 46
energy 7 8 9 37
environment 37
european sugar regime 6 11 28 82 88
exceptional items 6 26 82
executive committees 52
fair value 34 75
financial calendar 133
financial instruments 34
financial risk controls 33
food  industrial ingredients 
americas 9 27
food  industrial ingredients 
europe 10 26 28
foreign exchange rates 112
france melasse 111
funding and liquidity management 32
funding not treated as debt 33
gearing 134
going concern 34
goodwill 86
group accounting policies 72
group targets 9 23
income tax expense 32 83
individual savings account isa 133
intangible assets 86
interest cover 9 23 26 32 134 
interest income and finance expense 83
interest rate risk 33
internal control 52
international financial 
reporting standards 116
inventories 93
joint ventures 72 90 114
key performance indicators 23
management of financial risk 33
management of foreign 
exchange risk 33
net debt 109
net operating assets – 
segmental analysis 79
nghe an tate  lyle 30
nominations committee 50
nonexecutive directors’ 
terms of appointments 59
occidente 30
operating and financial review 20
operating profit 81
other reserves 97
parent company financial statements 124
payment to suppliers 47
post balance sheet events 112
presentation of financial statements 71
products 22
profit before taxation – 
segmental analysis 79
profit summary 135
property plant and equipment 88
provisions for other liabilities 
and charges 108
related party disclosures 112
remuneration committee 50 54
research and development 9 24 46
resources 23
retirement benefit obligations 32 78 104
return on net operating assets 134
risk factors 24
risk management 52
safety 11 35
segment information 9 27 79
senior management 44
sharebased payments 97
share capital 46 95
share dealing service 133
share price information 133
share registration 133
shareholder communications 49
staff costs 82
strategy and objectives 7 20
subsidiaries and investments 113
sucralose 6 8 10 22 29 111
sugars americas  asia 10 30
sugars europe 10 31
tate  lyle canada 30
tate  lyle citric acid 26 27
tate  lyle south africa 111
tate  lyle ventures 9 13 24 113
ten year review 134
trade and other payables 99
trade and other receivables 94
trainingpeople 23
website 133
working capital 32 108
index
subject page subject page subject page 02 financial highlights
04 tate  lyle at a glance
06 chairman’s statement
08 chief executive’s review
12 our strategy in action
20 operating and financial review
20 business description
20 strategy and objectives
21 operating environment
22 products and their uses
23 key performance indicators
23 resources
24 risk factors
26 financial review
35 corporate social responsibility
42 board of directors
44 senior management
46 directors’ report
48 corporate governance
54 directors’ remuneration report
65 financial statements
group financial statements
66 independent auditors’ report
67 consolidated income statement 
68 consolidated statement 
of recognised income 
and expense
69 consolidated balance sheet
70 consolidated cash flow
statement
71 notes to the consolidated
financial statements
parent company financial 
statements
124 independent auditors’ report
125 parent company balance sheet 
126 notes to the parent company
financial statements
133 information for investors
134 ten year review
136 index
137 useful addresses and 
telephone numbers
trademarks
splenda
®
and the splenda
®
logo are
trademarks of mcneil nutritionals llc
the dupont oval logo dupont
tm
and sorona
®
are trademarks or registered trademarks of 
ei du pont de nemours and company
cautionary statement
this annual report and accounts contains 
certain forwardlooking statements with respect 
to the financial condition results operations 
and businesses of tate  lyle plc these
statements and forecasts involve risk and
uncertainty because they relate to events and
depend upon circumstances that will occur in the
future there are a number of factors that could
cause actual results or developments to differ
materially from those expressed or implied by
these forwardlooking statements and forecasts
nothing in this annual report and accounts
should be construed as a profit forecast 
tate  lyle plc
tate  lyle plc is a public limited company listed
on the london stock exchange and registered in
england this is the report and accounts for the
year ended 31 march 2006 
more information about tate  lyle can be found
on our website at wwwtateandlylecom
tate  lyle annual report 2006   137
registered office
sugar quay 
lower thames street
london 
ec3r 6dq
tel 020 7626 6525
fax 020 7623 5213
website
httpwwwtateandlylecom
share registrar
lloyds tsb registrars
the causeway 
worthing west sussex 
bn99 6da
for telephone enquiries please
phone 0870 600 3970
this is a lloyds tsb registrars helpline
service which will recognise the
company’s name
adr depositary
the bank of new york
investor relations department
101 barclay street – 11th floor
new york ny 10286
tel 1 888 269 2377
corporate brokers
citigroup 
33 canada square
canary wharf
london e14 5lb
useful addresses and telephone numbers
printed by royle corporate print on revive matt which contains a minimum of 75 deinked
postconsumer waste
both printer and manufacturing paper mill are environmentally accredited iso14001
designed and produced by
pauffley wwwpauffleycom
photography by 
bill robinson 
nick david and
michael harvey annual report 2006 
tate  lyle annual report 2006


Summary:
 08 tate  lyle annual report 2006
chief executive’s review
“the splenda
®
sucralose business
again performed strongly and 
we significantly increased the
contribution from our core value
added ingredient products”
overview
tate  lyle performed well in the 2006
financial year and achieved good profit
growth despite a challenging environment
the splenda
®
sucralose business again
performed strongly benefiting during the
year from the first stage of expansion to the
mcintosh alabama facility we significantly
increased the contribution from our core
value added ingredient products and it was
also pleasing to note the margin gains we
achieved on commodity products in the
2006 calendar year’s sweetener pricing
round in the us
a number of factors have partially offset
these positive performances firstly higher
global energy prices added £30 million 
to our energy costs and also increased
ingredient and transport costs secondly
profits were depressed by lower margins 
for sugar and related products in the eu 
and higher export licence costs at sugars
europe these arose as a consequence of
oversupply as the market begins to adapt 
to the changes resulting from reform of the
eu sugar regime 
all our expansion projects which will
promote longer term value added growth
across the business are progressing
satisfactorily the capital projects to double
the mcintosh alabama sucralose production
capacity acquired under the realignment 
of the splenda
®
sucralose activities have
been completed and commissioning is
under way the new singapore sucralose
facility and our new joint venture plant with
dupont to produce biopdo
tm
from
renewable resources should both begin to
come on stream in our financial year ending
31 march 2007 the project to increase
value added capacity in our sagamore
facility in the us is also scheduled to be
completed in that year and the loudon
expansion is due for completion in the year
to 31 march 2008 
in line with our value added growth strategy
we completed two bolton acquisitions
during the year the acquisition of the italian
based cesalpinia foods was completed in
december 2005 and that of us speciality
food ingredients company continental
custom ingredients inc was completed in
january 2006 for a combined consideration
of £72 million both businesses have been
customers of tate  lyle for a number of
08 tate  lyle annual report 2006 tate  lyle annual report 2006   09
years and together we will be more
responsive in developing distinctive and
innovative solutions for the food industry 
the acquisitions made profits in line with 
our expectations in the final months of the
financial year these acquisitions represent 
a further step in broadening our product mix
technology and customer base in rapidly
expanding areas such as blends and
fortification and may be supplemented by
the acquisition of further bolton businesses 
in april 2006 just after the yearend 
we completed the acquisition of the assets 
and intellectual property of hycail bv and 
its finnish subsidiary hycail finland oy 
hycail develops polylactic acid polymers 
and resins a biodegradable plastic made
from renewable resources this modest 
£2 million initial investment strengthens 
tate  lyle’s knowledge and resources 
in the field of industrial ingredients from
renewable resources
this investment supplements our internal
research and development capability 
which we consider a key differentiator 
for tate  lyle we continue to invest
substantially in this area increasing
headcount by 45 and cost by 5 in the 
year to 31 march 2006 to improve oversight
and give an external perspective we have
established a research advisory group
chaired by dr barry zoumas one of our
nonexecutive directors the committee
comprises external experts and senior 
tate  lyle people it will review our research
and development portfolio and provide
insight into how leading edge technologies
could apply to future developments
we have also established tate  lyle
ventures our fund to invest in new products
and technologies that are closely aligned
with our strategy it will complement our
existing research and development and
partnering activities and will be formally
launched once the necessary regulatory
approvals have been obtained
we are consolidating the global marketing 
of tate  lyle’s current range of value added
and functional food ingredients into one
team our new global food ingredients
group this team will take tate  lyle 
into new ingredient areas and growth
opportunities this change to the structure
and leadership of tate  lyle’s businesses
reflects the acceleration of the group’s
growth strategy and our continuing
commitment to delivering excellence 
in customer service 
under the new european sugar regime
proposals our greek corn processing plant
part of food  industrial ingredients
europe is not viable we therefore propose
to close the plant which has an isoglucose
quota of 13000 tonnes by september
2008 we have entered an information 
and consultation phase with employees
proceeds from the surrender of quota will
mitigate the cash closure costs 
as part of our commitment to vigorously
defend and enforce our sucralose patents
we announced on 23 may 2006 that we 
had filed suit in the us district federal court 
for central illinois against a chinese
manufacturing group based in hebei
province as well as six importers of
sucralose into the us the proceedings
allege infringement of patented sucralose
manufacturing technology in respect of
sucralose manufactured in china 
group profit before tax exceptional items
and amortisation of £295 million was a 
16 improvement on the prior year 2005 –
£254 million group profit before tax after
exceptional items and amortisation was 
£42 million 2005 – £205 million
net debt has risen from £471 million 
at 31 march 2005 to £858 million at 
31 march 2006 
group targets
despite the growth in profits outlined above
this has in many ways been a year of
transition as we invest for growth
■ we have increased the contribution of
total value added products to group
profit before interest exceptional items
and amortisation from £132 million to
£161 million the changes to the eu
sugar regime will however reduce the
contribution from the commodity quota
constrained and consumer branded
segments over the next few years 
this makes our current target of a
contribution from total value added 
of 60 of group profit before interest
exceptional items and amortisation
achievable for the wrong reasons 
given uncertainty over how the eu sugar
regime will impact the group over the
next few years and the number of capital
projects that are coming to fruition we
have decided to replace this target with
a new oneyear target for profit before
interest exceptional items and
amortisation from total value added
products to increase by 30 in the 
2007 financial year
■ the net debt to ebitda earnings before
exceptional items and before interest 
tax depreciation and total amortisation
multiple has increased from 12 times 
to 19 times our maximum target for 
net debt to ebitda is 25 times
■ interest cover was 99 times this
remains robust underpinning our
investments in future growth and our
progressive dividend policy our minimum
target remains 50 times
■ all businesses have a target on both
economic and environmental grounds 
to reduce energy consumption on a per
unit basis by 3 per year it is pleasing 
to report that in the 2005 calendar year 
the group beat this target achieving 
a reduction of 36 at prevailing energy
prices we would expect energy costs 
to increase by £45 million in the year
ending 31 march 2007 and the total
energy bill for the year after taking into
account increased production to exceed
£250 million we have in place contracts
and hedges that cover around twothirds
of our estimated energy usage for the
2007 financial year
segmental reporting
this is the first full year under our new basis
for segmental financial reporting this analysis
is presented along product lines rather than
the geographic analysis previously reported
and we believe that this will give a more
meaningful analysis of our activities
performance of main businesses
food  industrial ingredients americas
produced a very strong performance 
with all of its major operations showing 
net gains despite higher energy and other
manufacturing costs sales were up 9 
at £1127 million and profit before interest
exceptional items and amortisation of 
£125 million was up 30  10 tate  lyle annual report 2006
food and industrial products improved 
due to higher volumes and increased gross
margins increasing the contribution from
core value added products sweetener
volumes were higher overall sweetener
gross margins improved following the 2006
calendar year sweetener pricing round 
net corn costs were lower ethanol benefited
from increased margins due to higher
gasoline prices and benign corn costs 
the recovery of the citric acid product line
continued with increased profitability
although this was constrained by higher
input costs tate  lyle custom ingredients
the former continental custom ingredients
inc business acquired in january 2006
made a modest profit in the final months 
of the financial year in line with our
expectations 
all major capital expansion projects are 
on schedule construction continues to
progress satisfactorily at the biopdo
tm
plant in loudon tennessee and also at
loudon and sagamore where expansion of
the value added food ingredient and ethanol
facilities is taking place the biopdo
tm
facility is expected to commence
commissioning during the middle of the
2006 calendar year
at food  industrial ingredients europe
sales were down 6 at £719 million with
higher volumes offset by lower prices
reflecting the calendar 2005 pricing round
profit before interest exceptional items and
amortisation was up 5 at £46 million
selling prices for isoglucose have been
squeezed due to an oversupply of sugar in
the market and impending changes to the
eu sugar regime favourable raw material
costs and improved selling prices for value
added and most other products in the 2006
calendar year pricing round partially
mitigated the impact of higher energy costs
and lower isoglucose prices tate  lyle
cesalpinia the former cesalpinia foods
business acquired in december 2005
performed in line with our expectations and
made a small profit in the last quarter of the
financial year 
in response to oversupply in the market 
the eu has withdrawn 25 million tonnes 
of quota from the sugar year ending in
september 2007 whilst we support this
action as an appropriate measure to correct
the balance of supply and demand it will
reduce isoglucose volumes however one 
of the provisions of the reform is the granting
of an additional isoglucose quota of almost
20 effective from october 2006 this will
partially offset the lower volume resulting
from the withdrawal
splenda
®
sucralose has continued to
enjoy buoyant demand across all major
food beverage and pharmaceutical
categories and performed strongly with 
sales of £142 million up 23 profit before
interest exceptional items and amortisation
of £68 million was 48 higher despite 
higher manufacturing costs mainly due to
increased energy and ingredient costs and
expansion related operational constraints
and startup costs of £5 million 2005 –
transitional costs £3 million 
the first mcintosh alabama plant expansion
has now been commissioned the second
phase of the expansion is also mechanically
complete and will be fully commissioned by
the middle of the 2006 calendar year these
two expansions will result in a doubling of
the mcintosh capacity compared to the
capacity of the plant when we acquired it 
in april 2004 with this increased production
capacity we will have additional product
available to build the customer base and
splenda
®
sucralose brand 
in 2004 when we decided to more than
triple the splenda
®
sucralose capacity 
we acquired under the business realignment
with mcneil nutritionals we took into
account our customers’ views of potential
demand with the first expansion to the
mcintosh facility completed and the second
expansion due to come on stream we are
building up production and accelerating our
work with customers on innovation and
reformulation construction of the new
singapore facility is on schedule to be
completed by january 2007  and has been
designed with the potential for capacity to
be expanded if necessary based on our
ongoing discussions with our customers
about their future plans we remain confident
of our ability to meet market growth in the
foreseeable future
sugars americas  asia sales were up 
15 to £273 million and profit before
interest exceptional items and amortisation
was up 35 to £27 million our sugar
operation in canada has performed as
expected despite the effect of increased
imports and higher energy prices the
results benefited from a marktomarket gain
on raw sugar inventory of £7 million due to
the higher prevailing world sugar price our
sugar business in vietnam achieved slightly
higher profits as higher selling prices more
than offset lower production due to a
drought results at occidente in mexico
were satisfactory although lower than the
previous year due to a change in sales mix
with higher export and lower domestic sales
at sugars europe sales were up 23 
at £1459 million but profit before interest
exceptional items and amortisation of 
£62 million was down 14 profitability 
in our eu sugar refining business has 
been substantially reduced impacted by
oversupply in the eu market coupled with
the expected higher cost of export licences
and higher energy costs both london and
lisbon refineries reported lower results than
the prior period the impact on the group
has been partially mitigated by a strong
performance from sugar trading achieving
an increase in profit before interest
exceptional items and amortisation of 
£13 million in what has been a volatile sugar
market this was also the main cause of the
increase in sales of the division sugar
trading has enjoyed two years of well above
average profits we believe that it is likely to
achieve a lower contribution in the 2007
financial year the eastern sugar joint
venture business continues to improve
although the quota reduction outlined above
will also impact this business in the 2007
financial year 
chief executive’s review continued
“all our expansion projects which will promote
longer term value added growth across the
business are progressing satisfactorily” tate  lyle annual report 2006   11
european sugar regime
the eu commission published a press
release on 24 november 2005 outlining the
final proposals for the reform of the eu sugar
industry tate  lyle fully understands the
need for reform of the eu sugar regime 
we welcome the proposals and in particular
the action by the commission to address
the imbalance of the impact on the cane
refining sector contained in earlier proposals
through the granting of transitional aid and
the extended period of stability until the end
of september 2015 contained therein
tate  lyle published its estimates of the
impact on the group on 25 november 2005
these estimates excluded other factors
which impact operating results such as the
effect of market forces during the transition
period to the new sugar regime and higher
energy prices since then our european
businesses have been affected by
oversupply of sugar within the eu with a
consequent effect on sugar pricing premia
this has reduced the profitability of those
businesses in the year to 31 march 2006
and is expected to depress margins for
sugar and related products further in the
year to 31 march 2007
as mentioned above the eu has announced
the withdrawal of 25 million tonnes of quota
for the sugar year ending in september
2007 this should have a beneficial impact
on pricing for sugar and related products but
the extent cannot be evaluated at this time
future quota withdrawals or cuts by the
commission cannot be discounted the
need for these will depend on supply and
demand which will be influenced by a
number of factors in particular the amount
of quota surrendered by manufacturers
as advised in our announcements of 
25 november 2005 and 29 march 2006
one consequence of the eu sugar regime
reform has been a review of the carrying
value of our european assets affected by 
the reform this is the principal element of
the total exceptional impairment charge of
£272 million the details of which are set out
in the operating and financial review we
propose to close our greek corn processing
plant which is part of food  industrial
ingredients europe by september 2008
the final detailed legislation resulting from
reform of the eu sugar regime may be
concluded only just before the start of the
new regime on 1 july 2006 although these
implementing regulations are not expected
to materially alter the key elements of the
new regime they will set the rules for the
daytoday running of the eu sugar market
as previously stated we anticipate that 
the impact of the reform on the results 
of the group will be at least offset by our
successful strategy to grow the total value
added component of our business 
a consistent objective since 1999
safety
tate  lyle has no higher priority than safety
which we believe is fundamental to running 
a successful business every year we
strengthen our commitment to ensure safe
and healthy conditions for our employees
contractors and visitors for the third
consecutive year safety performance across
tate  lyle has improved in all categories
reflecting our commitment to providing 
a safe workplace for all our employees
community involvement
tate  lyle aims to play a positive role in all
the communities in which we operate over
the years we have developed a groupwide
community involvement policy that forms
one of the core components underpinning
our ethical behaviour our programme
involves building longterm relationships with
local partners to deliver a shared objective
establishing strong safe and healthy
communities by investing time and 
resources into projects that directly 
address local needs
our community partnerships are very well
supported by employees many of whom
take part in programmes tate  lyle’s
community involvement benefits our
employees by enhancing their own local
community offering significant personal
development opportunities and making 
tate  lyle a company for which they are
proud to work the community involvement
policy is reviewed annually by the board 
conclusion
tate  lyle performed well in the 2006
financial year we have seen continued
success in our strategy of growing the total
value added component of our business 
this performance has been achieved despite
a challenging environment and we could not
have produced such a satisfactory outcome
without considerable effort and commitment
from our people around the world i would
like to take this opportunity to thank them 
for their dedication and contribution
looking forward management will 
be focused on three principal areas 
firstly to progress expansion projects under
way in the us and asia which will facilitate
continued value added growth across both
the food and industrial activities of the
business these projects will involve
substantial commissioning time and cost 
in the 2007 financial year they are central 
to our value added strategy and are
progressing satisfactorily 
secondly we will continue to build the
splenda
®
sucralose customer base 
and brand splenda
®
sucralose is a key
component in many of our new solution
sets developed for the food and beverage
industry we will also maintain our vigilance
in defending the brand and our intellectual
property 
and thirdly we are examining fundamental
options to mitigate the impact of the eu
sugar regime reform on the group
we continue to view tate  lyle’s future 
with confidence
iain ferguson cbe
chief executive
24 may 2006