tate  lyle annual report 2011
wwwtateandlylecom annual report 201 1
focus fix grow  directors’ report
 business review
 1  performance highlights
 2  our business
 4  chairman’s statement
 5  chief executive’s review
 8   strategy and key performance indicators
 10 group financial results
 12 speciality food ingredients
 15 bulk ingredients
 18  innovation and commercial development
 19  risk management
 22 additional financial information
 26 corporate responsibility
  governance
 32  board of directors
 34 executive management
 35  corporate governance
 44  directors’ remuneration report
 57   other statutory and governance information
 59  directors’ statement of responsibilities
   financial statements and  
 shareholder information
  financial statements
 60  independent auditors’ report to the  
members of tate  lyle plc 
 61  consolidated income statement 
 62  consolidated statement of  
comprehensive income 
 63  consolidated statement of financial position 
 64  consolidated statement of cash flows 
 65  consolidated statement of changes in 
shareholders’ equity
 66  notes to the consolidated financial 
statements 
 112  parent company financial statements 
  shareholder information
 118 fiveyear r eview
 120 information for investors
basis of preparation
unless stated otherwise the group’s financial 
statements are prepared in accordance with 
international financial reporting standards  
ifrss as adopted by the eu
adjusted operating profit adjusted profit  
before tax and adjusted earnings per share
unless stated otherwise adjusted operating  
profit adjusted profit before tax and adjusted 
earnings per share in this annual report and 
accounts exclude discontinued operations and  
are before exceptional items and amortisation  
of acquired intangible assets
amortisation
unless stated otherwise the use of  
‘amortisation’ or ‘amortisation of acquired 
intangibles’ on pages 1 to 59 in this annual report 
relates to the amortisation of intangible assets 
acquired through business combinations
continuing operations
unless stated otherwise all comments in this 
annual report and accounts refer to the continuing 
operations adjusted to exclude exceptional items  
and amortisation of acquired intangible assets  
a reconciliation of reported and adjusted 
information is included in note 43 on page 111
cautionary statement
please read the full cautionary and nonreliance 
statements which can be found on the inside  
back cover
definitions
in this report ‘company’ means tate  lyle plc 
‘tate  lyle’ or ‘group’ means tate  lyle plc  
and its subsidiary and jointventure companies
trademarks
splenda
®
 and the splenda
®
 logo are  
trademarks of mcneil nutritionals llc 
the dupont oval logo dupont
™
 and sorona
®
  
are trademarks or registered trademarks of  
e i du pont de nemours and company
contents
this report is available online at  
wwwtateandlylecomannualreport2011 
we are always reviewing the way that we 
communicate with our shareholders and this 
year we have also produced this report as 
an ipad app which you can download for 
free from the appstore
   these sections make up the directors’ report this part 
of the annual report sets out the information on the 
group’s principal activities together with a review of the 
development and performance of the group including 
financial performance in accordance with section  
417 of the companies act 2006
tate  lyle annual report 2011   121
nonreliance statement
this annual report and accounts has 
been prepared solely to provide additional 
information to shareholders to assess the 
group’s strategy and the potential of that 
strategy to succeed and should not be 
relied upon by any other party or for 
any other purpose
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 may 
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 2011 
more information about tate  lyle can be 
found on our website at wwwtateandlylecom
environmental statement
this report is printed on ‘look’ paper and 
has been independently certified on behalf  
of the forest stewardship council fsc
printed at st ives westerham press ltd 
iso14001 fsc certified and carbonneutral
®
registered office
tate  lyle plc
sugar quay 
lower thames street
london ec3r 6dq
tel 44 020 7626 6525
fax 44 020 7623 5213
company number 76535
wwwtateandlylecom
credits
designed typeset and produced by
wwwberghindjosephcom
photography by david rees
business review governance financial statements
shareholder information 2010 2011
268
321
adjusted operating prot 
£m
2010 2011
337
457
adjusted diluted earnings per share  
pence
2009 2010 2011
229
237
229
dividend per share   
pence
2009 2010 2011
1 231
464 
814
net debt
£m
shareholder information
business review governance financial statements
tate  lyle annual report 2011   1
business review performance highlights
     year to 31 march
statutory results     2011 2010
 
operating profitloss    £303m £44m
profitloss before tax continuing operations   £245m £116m
profit for the year total operations    £167m £19m
diluted earnings per share total operations   347p 33p
notes
1  before exceptional items and amortisation of acquired intangible assets 
2  the results for the year ended 31 march 2010 have been restated to reflect the reclassification  
of the sugars segment as discontinued operations
3  exchange rate movements reduced net debt by £27 million in the year ended 31 march 2011  
excluding movements in exchange rates net debt reduced by £323 million 2   tate  lyle annual report 2011
business review our business
we operate through two global business 
divisions – bulk ingredients bi and speciality 
food ingredients sfi each division has its own 
dedicated manufacturing base as well as separate 
commercial organisations to provide the necessary 
focus and expertise for customers in their two 
different end markets bi produces ingredients 
which are relatively undifferentiated and are sold 
in markets where customers principally look 
for supplier reliability quality and value sfi on 
the other hand produces distinctive highvalue 
ingredients which are sold in markets where 
customers look for technical and innovation 
capability insight and flexibility 
operations
tate  lyle is a global provider of ingredients and  
solutions to the food beverage and other industries 
through our production facilities around the world 
we turn raw materials into distinctive high quality 
ingredients for our customers our ingredients 
and solutions add taste texture nutrition and 
functionality to products used or consumed by 
millions of people every day 
here we explain how our business works
sources
all our ingredients are produced from crops 
predominantly corn ensuring we have a reliable 
source of corn for our plants is essential 
this involves developing longterm mutually 
beneficial relationships with growers farmers 
and other commercial partners to secure supply 
understanding commodity markets and hedging 
costs where feasible supply chain ethics are 
important to us we apply rigorous standards  
both practical and ethical to all suppliers and  
work with them to help them meet our compliance 
needs this is essential if we are to meet our 
customers’ requirements for traceability and  
quality throughout the supply chain 
speciality food ingredients
bulk ingredients
customers
customers
raw materials
innovation 
and commercial 
development shareholder information
business review governance financial statements
tate  lyle annual report 2011   3
sfi also has a food systems or blending 
business which sources ingredients and uses 
them along with our own to develop bespoke 
combinations of ingredients primarily for  
small to mediumsized customers
both divisions – but principally sfi – are 
supported by the innovation and commercial 
development icd group icd brings together 
product development marketing and platform 
management into one global team enabling  
a fully integrated approach to developing  
and commercialising innovation 
food and beverage is our most significant market 
comprising over 75 of group sales other markets 
we sell into include industrial animal feed and 
pharmaceutical and personal care 
customer understanding drives all that we do  
we use market research to understand the consumer 
our customer’s customer the markets we operate 
in and our customers’ needs we use this insight to 
drive our own product development to differentiate 
ourselves from our competitors and importantly to 
give our customers an advantage by working with us 
for large customers our icd group provides technical 
and applications support for smaller customers our  
icd group is often their rd team
customers
speciality food ingredients
bulk ingredients
customers
customers
raw materials
innovation 
and commercial 
development 4   tate  lyle annual report 2011
we have no higher priority than safety in light of the 
above during the year we asked dupont recognised 
as an industry leader in safety to undertake a review 
of safety across the group the results of this audit 
have catalysed an action plan which will help us 
achieve our longterm goal of worldclass safety 
performance my colleagues on the board and i  
will continue to pay close attention to this
corporate responsibility and risk management
following its 2010 effectiveness review the board 
established a corporate responsibility committee 
to strengthen its oversight of safety social 
environmental and ethical matters 
 
 
 
 
 
 
 
 
 
 
 
 
providing strong effective leadership within a sound 
framework of control is the board’s primary duty 
and requires directors to have a deep understanding 
of the business we began a programme of 
individual site visits by directors which has helped 
us enormously in our work this year to enhance risk 
management and determine an appropriate risk 
appetite for t ate  lyle it has also made the directors 
more visible to employees this will be very important 
in the coming year as we continue to implement our 
strategy and intensify our focus on safety 
finally i would like to thank all our employees who 
have worked immensely hard during a period of  
great change to deliver this year’s results 
sir peter gershon
chairman
26 may 2011
business review chairman’s statement
sir peter gershon
chairman
tate  lyle has made progress  
during the year delivering a good 
financial performance and having  
taken a number of important steps  
in line with our strategy to ‘focus  
fix and grow’ the business
profit before tax exceptional 
items and amortisation of acquired 
intangible assets of £263 million 
represents growth of 34  
32 in constant currency 
overview
we have refocused the business through the sale 
of our eu sugar refining operations molasses 
business and ethanol facility in fort dodge iowa 
usa and the reorganisation of the group into 
two global operating divisions speciality food 
ingredients and bulk ingredients supported by 
the creation of the innovation and commercial 
development group a unit dedicated to driving 
longterm growth
during the year the board approved two major 
strategic initiatives to support the transformation of 
the business the first the commercial and food 
innovation centre in chicago usa will transform 
our product development capability and the way 
we work with our customers the second the 
development of a single set of business processes 
supported by one global it infrastructure and a 
global shared services centre in łód ´ z poland will 
make the business more efficient and responsive 
financial performance
profit before tax exceptional items and 
amortisation of acquired intangible assets of 
£263 million represents growth of 34 32  
in constant currency on the previous year with 
speciality food ingredients and bulk ingredients 
delivering an increase of 26 and 15 in adjusted 
operating profit respectively 
through a combination of continued tight financial 
discipline strong cash generation and proceeds 
from disposals net debt at the year end stood at 
£464 million a 43 reduction on the previous  
year 2010 – £814 million
i am also pleased to report that we have made 
progress reducing the amount of adverse 
exceptional items reported within these results
dividend
the board is recommending a 5 increase in the 
final dividend to 169p making a fullyear dividend 
of 237p per share up 35 on the prior year  
the proposed increase in the dividend reflects  
the board’s confidence in the business
safety
the board deeply regrets the fatality that  
occurred at our jointventure plant in turkey in  
may 2010 as reported last year whilst our overall 
safety performance has continued to compare well 
against the industry we are very disappointed that 
our performance has deteriorated from last year shareholder information
business review governance financial statements
tate  lyle annual report 2011   5
the net finance expense from continuing 
operations decreased from £72 million to 
£58 million principally as a result of lower pension 
interest expense adjusted profit before tax was 
up 34 32 in constant currency to £263 million 
2010 – £196 million reflecting the strong operating 
performance and reduction in net interest charge 
adjusted diluted earnings per share increased by 
36 34 in constant currency to 457p benefiting 
from improved operating performance and a lower 
effective tax rate of 185 2010 – 208  
 
 
 
 
 
 
 
 
 
 
 
exceptional items on continuing and
discontinued operations totalled a charge of 
£48 million 2010 – £276 million within continuing 
operations there was a net £10 million gain on the 
sale of the fort dodge facility and £15 million of 
costs associated with the business transformation 
programme within discontinued operations a  
loss of £55 million was booked on the disposal  
of the eu sugar refining operations eu sugars 
which remains subject to closing adjustments  
and adjudication as discussed in note 35 and  
a gain of £12 million on the disposal of molasses 
balance sheet
we continue to focus on managing our working 
capital closely resulting in our average quarterly 
cash conversion cycle falling from 45 days  
to 34 days
the key performance indicators kpis of our 
financial strength the ratio of net debt to earnings 
before interest tax depreciation and amortisation 
ebitda and interest cover remain well within our 
internal targets at 31 march 2011 the net debt 
to ebitda ratio was 11 times 2010 – 18 times 
against our target of 20 times interest cover on 
total operations at 31 march 2011 was 69 times 
2010 – 58 times again ahead of our minimum 
target of 50 times
results for the continuing operations are adjusted
to exclude exceptional items and amortisation  
of acquired intangible assets except where 
specifically stated to the contrary this commentary
relates only to the adjusted results for the 
continuing operations a reconciliation of statutory 
and adjusted information is included at note 43
overview of group’s financial performance
tate  lyle performed well in the year achieving 
steady volume growth across a number of our 
markets very strong returns from coproducts  
and lower sucralose manufacturing costs
sales for the year were £2720 million 
2010 – £2533 million an increase of 7  
5 in constant currency on the prior year  
in speciality food ingredients sales increased 
by 2 2 in constant currency to £805 million 
2010 – £788 million with sales volumes up by 
7 the rate of sales growth was impacted by 
reduced selling prices for splenda
®
 sucralose 
reflecting our strategy of securing longterm 
volume incentive contracts with our customers 
within bulk ingredients sales increased by 
10 7 in constant currency to £1915 million 
2010 – £1745 million 
adjusted operating profit increased by 20 
17 in constant currency to £321 million 
2010 – £268 million in speciality food 
ingredients adjusted operating profit increased  
by 26 25 in constant currency to £206 million 
2010 – £163 million driven by increased sales 
volumes operational leverage improved product 
mix and lower splenda
®
 sucralose manufacturing 
costs the effect of exchange translation was to 
increase adjusted operating profit by £2 million 
in bulk ingredients adjusted operating profit 
increased by 15 11 in constant currency to 
£157 million 2010 – £136 million driven by volume 
growth very strong returns from coproducts and 
an improved performance from ethanol offset 
by lower margins in sweeteners and industrial 
starches higher corn prices particularly in the 
second half of the year resulted in an additional 
£16 million of coproduct returns compared to the 
prior year the effect of exchange translation was  
to increase adjusted operating profit by £5 million
central costs which include head office treasury 
and reinsurance activities increased by £11 million 
to £42 million reflecting the costs associated with 
strengthening the group’s senior management 
team costs associated with our financing portfolio 
and oneoff costs of £6 million in the first half 
relating to the review of the group’s activities
javed ahmed
chief executive
business review chief executive’s review
our objective remains to build a  
platform on which we can deliver  
steady and sustainable long term  
growth and value for shareholders  
we remain on track to deliver on  
this objective
in speciality food ingredients 
adjusted operating profit 
increased by 26 25 in 
constant currency  6   tate  lyle annual report 2011
the group’s balance sheet was strengthened 
significantly during the year net debt reduced  
by 43 to £464 million at 31 march 2011 
31 march 2010 – £814 million this improvement 
in net debt which builds upon the considerable 
reduction achieved in the prior year was driven 
by the disposals of eu sugars molasses and 
fort dodge resulting in a net cash inflow of 
£316 million and the underlying cash generated  
by the business
return on capital employed increased from 
136 to 206 as a result of increased profits 
a reduction in operating assets reflecting the 
writedown of fort dodge the reduced average 
levels of working capital within the business  
and exchange rate effects
dividend
the board is recommending a 5 increase in  
the final dividend to 169p 2010 – 161p making  
a full year dividend of 237p 2010 – 229p per 
share up 35 on the prior year subject to 
shareholder approval the proposed final dividend 
will be due and payable on 5 august 2011 to 
all shareholders on the register of members 
at 1 july 2011 in addition to the cash dividend 
option shareholders will also be offered a dividend 
reinvestment plan drip alternative the drip 
replaces the scrip alternative that was previously 
available to shareholders
 
 
 
 
 
 
 
 
 
 
 
safety
we have no higher priority than safety and are 
committed to providing safe and healthy working 
conditions for all our employees contractors and 
visitors whilst we are pleased that the safety 
performance at most of our locations improved 
in the 2010 calendar year and that our safety 
performance continues to compare favourably 
against the industry the group’s overall safety 
performance as detailed in the kpi table on pages 
8 and 9 deteriorated in 2010 having set ourselves 
very high standards we take any reduction in 
performance very seriously a detailed plan has 
been put in place to drive an improvement in  
safety performance which our global safety  
teams employees and contractors are working 
hard to embed across the group
focus fix grow update
as we set out in may 2010 tate  lyle’s  
strategy is to grow our speciality food ingredients 
business supported by cash generated from bulk 
ingredients to deliver on this strategy and to 
reinvigorate tate  lyle we have taken a number  
of steps during the year to ‘focus fix and grow’  
the business
focus
we have disposed of a number of businesses  
and assets to ensure that our resources are  
focused on delivering our strategy and maximising 
returns to shareholders during the year we sold 
eu sugars molasses fort dodge and after the 
yearend we announced the conditional sale of 
our vietnam sugar interests as a result of these 
disposals tate  lyle is a more focused less 
complex business with a reduced exposure  
to commodity markets
fix
the new operating model implemented on  
1 june 2010 based on two global business units 
speciality food ingredients and bulk ingredients 
supported by a global unit dedicated to driving 
growth innovation and commercial development 
and shared support services is being embedded 
this new operating model is simple and transparent 
and provides an efficient platform for future growth 
both organically and through bolton acquisition 
we have also taken steps to strengthen the 
customerfacing areas of our business – for 
example the commercial organisations of the 
speciality and bulk businesses have been  
separated and are now fully focused on  
serving their different end markets 
in may 2010 we announced two major twoyear 
initiatives to transform our operational capabilities – 
firstly to implement a common global isit platform 
and secondly to provide global support services 
through the use of shared service centres after 
a detailed and thorough planning process both 
initiatives were launched on 1 january 2011 and  
are making good progress following an evaluation 
of a number of different locations the decision was 
made to locate our global shared service centre 
in łód ´ z poland the new centre is expected to be 
operational by the end of 2011 with the various 
services to be provided migrated to the new centre 
in a phased process over a 12 to 15month period 
the new isit platform will also be implemented via 
a phased process starting in the first half of 2012 
building a highperformance culture is a key part 
of the ‘fix’ phase to help achieve this during the 
year we put in place a new global performance 
management system a new global sales incentive 
system and established common global metrics in 
areas such as working capital customer service 
and quality ensuring we have the right skills and 
talent in the business is also very important we 
are developing our high potential employees by 
providing them with more training and opportunities 
to learn particularly with international assignments 
and are also recruiting new staff both to fill skills 
gaps and to refresh our talent base 
the new process for capital investment planning 
and implementation has now been fully embedded 
within the organisation all new investments are 
now evaluated against clear strategic and financial 
criteria with greater scrutiny and clear execution 
milestones for approved investments
business review chief executive’s review
our new operating model is 
simple and transparent and 
provides an efficient platform 
for future growth  shareholder information
business review governance financial statements
tate  lyle annual report 2011   7
in our bulk ingredients division we are looking  
at ways to diversify our business by leveraging our 
fermentation expertise and facilities to partner with 
businesses in the biobased materials industry 
in november 2010 we signed an agreement 
with amyris under which tate  lyle will produce 
farnesene at its facilities in decatur illinois usa 
with the end product being distributed by amyris 
then in march 2011 we signed an agreement 
with genomatica under which we will dedicate a 
demonstrationscale production facility in decatur 
for exclusive use by genomatica for the scaleup 
of the biobdo process
 
 
 
 
 
 
 
 
 
 
costs
the total costs associated with the delivery of 
the new commercial and food innovation centre 
are expected to be £37 million and the common 
isit platform and global support services to be 
£57 million of the total amount of £94 million 
£40 million is expected to be treated as exceptional 
costs within the income statement and £54 million 
as capital expenditure during the financial year 
2011 £6 million of capital and £10 million of 
exceptional costs were incurred and we anticipate 
around £65 million of expenditure in relation to 
these projects during the year ending 31 march 
2012 the remaining expenditure relating to  
isit and global shared services will be incurred 
in the year ending 31 march 2013 we expect the 
investment made in the common isit platform  
and global support services to pay back over  
a period of three years
risk management
we have embedded a framework of risk 
management into the various programmes 
undertaking the initiatives to focus fix and grow the 
business to address the execution risk associated 
with them this framework has been supplemented 
by internal and external risk and assurance 
activities over the life of the programmes
conclusion
we have taken a number of important steps during 
the year to deliver on our commitment to focus 
fix and grow the business the focus phase is now 
largely complete and the fix phase is progressing 
well although there is still more work to do  
whilst the grow phase is beginning to yield some 
small but tangible benefits it is still early days  
our objective remains to build a platform on which 
we can deliver steady and sustainable longterm 
growth and value for shareholders we remain  
on track to deliver on this objective 
javed ahmed 
chief executive
26 may 2011
grow
the innovation and commercial development 
icd group which was formed on 1 june 2010 
has made good progress during the year working 
closely with customers on product development 
and innovation initiatives icd is responsible for 
the innovation pipeline and during the year the 
processes used by icd to manage and review the 
pipeline and the way it launches new products 
were completely overhauled during the year we 
launched resistamyl
™
 140 a bakery cream 
starch in europe and promitor
™
 soluble  
corn fiber 85 in the usa and latin america  
we also recently announced a fiveyear strategic 
partnership agreement with biovittoria ltd for the 
exclusive global marketing and distribution rights 
for biovittoria’s monk fruit extract marketed under 
the purefruit
™
 brand name purefruit
™
 is the 
only fruitbased caloriefree sweetening ingredient 
available today and is a good addition to our 
sweetener and wellness portfolios 
to enhance how we engage with our customers 
and improve our access to them in october 2010 
we announced that we would be establishing a 
new commercial and food innovation centre 
in chicago usa the centre which is due to 
be operational in early 2012 will be the global 
headquarters of icd and will feature laboratories  
a demonstration kitchen sensory testing and 
analytical and pilot plant facilities
the underlying global consumer trends of  
health and wellness and convenience continue  
to underpin longterm growth in the speciality  
food ingredients market customer demand 
for both new and existing products that meet 
consumers’ needs in these key areas remains 
strong particularly for products that can help 
address rising levels of diabetes and obesity in  
the developed and increasingly the developing 
world cost optimisation in the face of high and 
volatile commodity eg sugar prices is also 
driving demand in light of the strong pipeline 
of demand for splenda
®
 sucralose both from 
existing and new customers and having carried 
out a comprehensive review of the available 
options we have decided to restart sucralose 
production at our mothballed facility in mcintosh 
alabama usa the restart of production which  
we expect to take place during the first half of 
financial year 2013 reinforces our commitment  
to the sucralose business provides further 
resilience in our supply chain and further 
strengthens our position as the leading global 
manufacturer and supplier of sucralose 
we are also looking to build our business and 
capabilities in two areas where we see longterm 
growth – new customer segments and emerging 
markets dedicated resources have now been 
put in place in europe and the usa to serve small 
and medium enterprise smes and private label 
customers in emerging markets we have changed 
our senior management team in asia pacific to 
provide fresh impetus to our efforts in that region 
we are also building new application laboratories 
in mexico and brazil to add to our global network 
and have strengthened our sales teams in both 
latin america and china
the grow phase is beginning 
to yield some small but 
tangible benefits  8   tate  lyle annual report 2011
business review strategy and key performance indicators
our vision is to become the leading global provider of speciality food 
ingredients and solutions our strategy is to deliver this vision through
•	 a 	 d i sc i p l i n e d 	 f o c u s 	 o n 	 gr o w i n g 	 o ur
 speciality food ingredients business
 – deeper customer understanding 
  continuous innovation and agility
 – stronger positions in high  
growth markets
•	 d r i vi n g 	 o ur 	 b u l k 	 i n gr e d i en ts	
 business for sustained cash 
generation to fuel this growth
update on environmental sustainability
we are establishing an index for environmental 
sustainability which we will report on as a key 
performance indicator from calendar year 2011  
like safety we report environmental figures by  
calendar year because we are required to do  
so for other regulatory reporting
financial 	 strength what we measure
we look at measures of financial strength to  
ensure that we maintain the financial flexibility to 
grow the business whilst maintaining investment 
credit ratings
•	 	 net debt to ebitda multiple
1
 the number of times  
the group’s net borrowing exceeds its trading cash  
flow  	 ebitda 	 is 	 ear nings 	 befor e 	 exceptional 	 items	 
interest tax depreciation and amortisation
•	 	 interest cover
1
 the number of times the profit of  
the group exceeds interest payments made to  
service its debt
corpora te 	 responsibility what we measure
it is important that we act responsibly and consider 
carefully the impact our activities have on all 
stakeholders including employees customers and 
the communities in which we operate
•	 	 recor dable 	 incident 	 rate
2
 the number of  
injuries per 200000 employee hours that require  
more than first aid
•	 	 losttime 	 accident 	 rate
2
 the number of recordable 
injuries sufficiently serious to result in lost work days 
or restricted work activities per 200000 hours 
perfor m ance what we measure
we focus on a number of financial performance 
measures to ensure that our strategy successfully 
delivers increased value for our shareholders
•	 sales 	 of 	 speciality 	 food 	 ingr edients
 
 
•	 adjusted 	 operating 	 pr ofit
 
 
•	 	 retur n 	 on 	 capital 	 employed 	adjusted profit before  
interest tax and exceptional items divided by adjusted 
average net operating assets for continuing operations
•	 	 cash 	 conversion 	 cycle 	controllable working  
capital divided by quarterly sales multiplied by  
the number of days in quarter
1 net debt ebitda and interest as defined in our banking covenants
2  in previous years we measured the safety index a weighted average 
of injuries sustained in the workplace this year we have begun 
instead to report our recordable incident and losttime accident rates 
because they are recognised industry standards for benchmarking 
the rates reported above are combined rates covering both employees 
and contractors further detail on employee and contractor rates is 
provided in the corporate responsibility report on page 27 shareholder information
business review governance financial statements
tate  lyle annual report 2011   9
the board has chosen a number of key performance indicators  
to measure the group’s progress the table below sets out these  
indicators explaining how they relate to our strategic priorities  
and how we performed against them this year
why we measure it how we performed
11x 18x
69x 58x
•	 	 t o 	 ensur e 	 that 	 we 	 have 	 the 	 appr opriate 	 level 	 of	
financial gearing and that we generate sufficient 
profits to service our debt these measures are  
a key focus for banks and providers of both  
debt and equity capital
why we measure it how we performed
093
058
089
039
5
 49
•	 	 the 	 safety 	 of 	 our 	 employees 	 and 	 contractors	 
is of paramount importance ensuring safe and 
healthy conditions for employees at all our  
locations is essential to our operation as a 
successful business
2010 
4
2009 
4
change
why we measure it how we performed
£805m £788m 2 
£321m £268m 1 7
•	 	 t o 	 ensur e 	 we 	 ar e 	 successful 	 in 	 gr owing 	 the	 
division which is the key area of strategic focus  
for the business
•	 	 t o 	 track 	 the 	 underlying 	 performance 	 of 	 the	
business and to ensure sales growth translates  
into increased profits
•	 	 t o 	 ensur e 	 that 	 we 	 continue 	 to 	 generate 	 a 	 str ong 	 rate	
of return on the assets that we employ and that we 
have a disciplined approach to capital investment
•	 	 t o 	 track 	 how 	 ef ficient 	 we 	 ar e 	 in 	 tur ning 	 incr eased	
sales into cash and to ensure that working capital 
is managed effectively
206 136 700bps
3
34 days 45 days 11 days
2011
2011
2010 restated
2010
change 
constant currency
3  basis points one hundred basis points equates to one 
percentage point
4    unlike our other kpis we report safety figures by calendar year 
because we are required to do so for other regulatory reporting 10   tate  lyle annual report 2011
business review group financial results
sales were up 5
1
 at £27 billion while adjusted 
operating profit was up 17
1
 with a 25
1
 increase in 
profits from our speciality food ingredients division our 
focus for growth with lower interest and tax earnings 
per share increased by 34
1
 and net debt reduced by 
43 to £464m just over a third of the level at the end  
of financial year 2009
tim	lodge
chief financial officer
summary of group financial results
£m unless stated otherwise 
year to  
31 march  
2011 
year to  
31 march  
2010 
change  
reported 

constant  
currency 
change 

continuing operations 
sales 2 720 2 533 7 5
adjusted operating profit 321 268 20 17
net finance expense 58 72
adjusted profit before tax 263 196 34 32
exceptional items 5 298
amortisation of acquired intangibles 13 14
profitloss before tax 245 116
income tax expensecredit 49 95
profitloss for the year from continuing operations 196 21
lossprofit for the year from discontinued operations 29 40
profit for the year 167 19  
earningsloss per share from continuing operations
basic 426p 47p
diluted 419p 47p  
adjusted earnings per share from continuing operations
basic 465p 339p 37 36
diluted 457p 337p 36 34
dividends per share
interim paid 68p 68p – 
final proposed 169p 161p 5
 237p 229p 35 
net debt at 31 march 464 814 43 
1 constant currency change shareholder information
business review governance financial statements
tate  lyle annual report 2011   11
sales of £2720 million 2010 – £2533 million  
from continuing operations were 7 higher than 
the prior year 5 in constant currency sales  
in speciality food ingredients increased by  
2 2 in constant currency from £788 million  
to £805 million with sales volume increasing  
7 year on year the rate of sales growth was 
impacted by reduced selling prices for sucralose 
reflecting our strategy of securing longterm 
volume incentive contracts with our customers 
sales in bulk ingredients grew by 10  
7 in constant currency to £1915 million  
2010 – £1745 million 
adjusted operating profit increased by 20 
over the prior year 17 in constant currency 
to £321 million 2010 – £268 million adjusted 
operating profits in speciality food ingredients 
increased by 26 25 in constant currency 
to £206 million 2010 – £163 million driven by 
increased volumes operational leverage improved 
product mix and lower manufacturing costs for 
sucralose in bulk ingredients adjusted operating 
profit grew by 15 11 in constant currency 
to £157 million 2010 – £136 million driven by 
increased volumes very strong returns from  
coproducts on the back of the high corn price  
and an improved performance from ethanol 
despite lower margins in sweeteners and  
industrial starches 
central costs which include head office treasury 
and reinsurance activities increased by £11 million 
to £42 million reflecting the costs associated with 
strengthening the group’s senior management 
team costs associated with our financing portfolio 
and oneoff costs of £6 million in the first half 
relating to the review of the group’s activities
amortisation of intangibles acquired through 
business combinations was £13 million  
2010 – £14 million
exceptional items from continuing and 
discontinued operations totalled a charge of 
£48 million 2010 – £276 million within continuing 
operations there was a net £10 million gain on the 
sale of the fort dodge facility and £15 million of 
costs associated with the business transformation 
programme within discontinued operations a 
loss of £55 million was booked on the disposal 
of eu sugars which remains subject to closing 
adjustments and adjudication as discussed in  
note 35 partially offset by a gain of £12 million  
on the disposal of molasses 
 
 
 
 
 
 
 
 
 
 
 
 
the net finance expense from continuing 
operations decreased from £72 million to 
£58 million principally as a result of lower pension 
interest expense we were not able to benefit  
fully in the year from the decrease in average net 
debt due to the predominantly fixed nature of our 
gross borrowings however the net interest charge 
is expected to be lower in the 2012 financial year  
as a result of lower levels of average net debt  
the repayment of our us300 million 6125  
bond in june 2011 and a positive impact from 
pension interest 
 
 
 
 
 
 
 
adjusted profit before tax increased by 34 
32 in constant currency to £263 million 
2010 – £196 million on a statutory basis profit 
before tax was £245 million compared to a loss of 
£116 million in the prior year the effective rate of 
tax on adjusted profit from continuing operations 
was 185 2010 – 208 the decrease was  
due mainly to changes in the geographical origin  
of profits and also the resolution of some  
historical tax issues 
discontinued operations comprise the eu sugars 
molasses international sugar trading and the 
sugar operations in vietnam and israel the 
operating loss from discontinued operations was 
£45 million after exceptional losses of £43 million 
2010 – profit of £50 million after exceptional gains 
of £22 million on 20 april 2011 we announced 
the conditional sale of our vietnam sugar interests 
any profit on disposal will be recognised as 
and when the sale completes the loss from 
discontinued operations after taxation for the year 
was £29 million 2010 – profit of £40 million 
total basic earnings per share was 353p  
2010 – 33p and total diluted earnings per share 
was 347p 2010 – 33p adjusted diluted earnings 
per share from continuing operations was 457p 
2010 – 337p and on the same basis basic 
earnings per share was 465p 2010 – 339p 
speciality food ingredients 
accounts for 64 of operating 
profit with margins around 
three times those of bulk 
ingredients 
net debt reduced by 43  
to £464 million  12   tate  lyle annual report 2011
business review speciality food ingredients
speciality food ingredients develops produces and  
markets distinctive highquality ingredients for food  
and beverage customers across the world by leveraging 
our manufacturing facilities innovative technology  
and formulation expertise we help them create more  
costeffective better tasting products for consumers 
speciality food ingredients works closely with our 
innovation and commercial development team  
see page 18 to develop a pipeline of new products 
olivier	rigaud
president
main	 locations
customers 
products
americas
houlton maine
lafayette indiana 
mcintosh alabama 
sycamore illinois
van buren arkansas 
emea 
lübeck germany
bergamo italy 
noto italy 
ossona italy 
koog the 
st petersburg 
russia 
kya sand  
south africa
mold uk
asia pacific 
brisbane australia 
jurong island 
singapore
•	 	 lar ge 	 multinational 	 food 	 and	
beverage manufacturers 
•	 	 small 	 and 	 mediumsized 	 food	 
and beverage manufacturers 
•	 	 private 	 label 	 food 	 and 	 beverage	
manufacturers
•	 	 	 star chbased 	 speciality 	 ingr edients
–   speciality starches including  
fatreplacers and stabilisers
–   speciality sweeteners including 
crystalline fructose
–   soluble corn fibres including 
polydextrose and promitor
™
 
soluble corn fiber
•	 highintensity 	 sweeteners
–  splenda
®
 sucralose
–  purefruit
™
•	 food 	 systems
–  stabilisers systems
–  flavoured systems
sales operating profit operating cashflow
£805m £206m
25
1
£263m
summary of financial results
year to 31 march change
£m unless stated otherwise 2011 2010 reported
constant  
currency
sales 805 788 2 2
adjusted operating profit 206 163 26 25
margin 256 207 490bps
2
480bps
2
netherlands
1 constant currency change
2 basis points one hundred basis points equates to one percentage point shareholder information
business review governance financial statements
tate  lyle annual report 2011   13
market conditions
in food starches increased demand for starch 
derivatives and the poor availability in europe of 
potatobased starches due to the poor harvest 
has tightened european industry capacity resulting 
in increased demand for cornbased starches and 
a firming of starch margins overall a short supply 
of tapiocabased starches in asia resulted in an 
increase in cornbased modified food starch sales 
in the region in the usa and europe the continuing 
albeit gradual recovery from the recession has 
seen a strengthening demand for modified food 
starch in the convenience food industry with 
innovation in snacks leading the recovery 
continuing high and volatile sugar prices have  
had a positive impact on demand for starchbased 
speciality and highintensity sweeteners increased 
regulation in some markets notably latin america 
where some countries are now mandating stricter 
labelling of sugar levels in foods or restricting the 
use of competing sweeteners further contribute  
to this trend
rising levels of obesity and diabetes in both the 
developed and emerging markets as well as the 
high and volatile price of sugar continue to support 
the market for highintensity sweeteners sucralose 
again increased its value share of the highintensity 
sweeteners market increasing from 27 to 28 
splenda
®
 sucralose’s share of the global market 
for sucralose remains approximately 90 
the increased focus on healthier lifestyles is 
also driving demand in the health and wellness 
space and we have seen robust growth in this 
area driven by new product launches during the 
year in addition the favourable opinions granted 
by the european food safety authority efsa 
for polydextrose and sucralose in april 2011 
are expected to increase the focus on these 
ingredients as key contributors to healthy diets 
within food systems a key driver of growth 
continues to be the need for customers to develop 
and formulate more cost effective solutions against 
a backdrop of high commodities prices
financial performance
sales volumes increased by 7 with volume 
growth across all valueadded product categories 
sales increased by 2 2 in constant 
currency to £805 million 2010 – £788 million 
adjusted operating profit increased by 26 
25 in constant currency to £206 million 
2010 – £163 million the increase in operating 
profit and margin was driven by higher volumes 
operational leverage improved product mix and 
lower sucralose manufacturing costs the effect 
of exchange translation was to increase adjusted 
operating profit by £2 million
this division comprises three broad product 
platforms 	 namely 	 star chbased 	 speciality	
ingredients highintensity sweeteners and  
food systems
starchbased speciality ingredients
in starchbased speciality ingredients sales 
increased by 4 2 in constant currency 
to £434 million 2010 – £418 million margins 
increased by five percentage points and our aim 
is to hold on to most of these margin gains during 
financial year 2012 the benefits of operational 
leverage derived from selling additional volumes of 
higher margin products with only a relatively small 
uplift in our fixed cost base was the key driver of 
the profitability growth of this product segment 
in modified food starches sales volume  
increases were driven by increased demand  
across all regions steady growth in developing 
markets especially the asia pacific region was 
driven by the demand for more convenience and 
manufactured foods during the year we launched 
resistamyl
™
 140 a bakery cream starch  
in europe and the initial sales response has  
been encouraging  
 
 
 
 
 
 
 
 
speciality corn sweeteners benefited from higher 
sales volumes in europe the usa and developing 
markets particularly latin america on the back  
of high and volatile sugar prices 
the successful launch of our highfibre lowsugar 
and lowcalorie prebiotic fibre – promitor
™
 
soluble corn fiber 85 – in the usa and latin 
america has driven growth in our health and 
wellness platform which we expect will continue to 
benefit from the consumer trend towards healthier 
lifestyles during the year we also commissioned 
the first polydextrose fibre manufacturing operation 
in europe providing our european customers 
with a shorter supply chain and a broader product 
range we are very pleased with the customer 
reaction to our fibre product range as highvalue 
products their growth has improved product mix 
leading to an improvement in margin 
whilst sales to developing markets increased 
strongly across this product category during the 
year they are building from a low base and thus the 
contribution to operating profit remains modest 
a d j us t e d	 o pe r a t i n g	 pr o fi t	
increased by 26 25 in 
constant currency  highintensity sweeteners
within highintensity sweeteners we saw 
good sales volume growth during the year as 
expected average selling prices were lower than 
the comparative period reflecting our strategy 
of securing longterm sucralose contracts with 
volume incentive arrangements as a result 
sales by value decreased by 1 3 in constant 
currency to £185 million 2010 – £187 million 
looking forward we expect the decline we have 
seen in selling prices for splenda
®
 sucralose to 
moderate towards the end of this financial year 
as contracts renew a reduction in splenda
®
 
sucralose manufacturing costs was an important 
driver of increased profitability in this product 
segment and speciality food ingredients overall
 
 
 
 
 
 
 
 
 
 
 
 
we have seen continuing strong growth in demand 
for splenda
®
 sucralose this growth has come 
not only from more mature markets such as 
europe and the usa but also emerging markets 
particularly asia and latin america where as 
in developed markets obesity and diabetes is 
becoming more prevalent these markets provide 
an excellent opportunity to expand our footprint 
where the taste preferences of consumers for 
beverages and other products are less well 
established and where the heat stability of 
splenda
®
 sucralose make it well suited to less 
well developed supply chains in addition we 
have also seen increased demand for splenda
®
 
sucralose from customers looking to use more 
costefficient alternatives in an environment of 
volatile and highpriced sugar
we expect these longterm structural drivers  
to sustain the growth levels achieved over the  
last few years supported by a strong pipeline 
of demand for splenda
®
 sucralose both from 
existing and new customers this means that 
we will need further capacity to meet future 
demand and as a result we are going to restart 
production of splenda
®
 sucralose at mcintosh 
alabama usa during the first half of the year 
ending 31 march 2013 the decision to restart 
production at mcintosh which was taken following 
a comprehensive review of alternative options 
reinforces our commitment to the sucralose 
business provides further resilience in our supply 
chain and further strengthens our position as  
the leading global manufacturer and supplier  
of sucralose
in restarting mcintosh we will incur approximately 
£3 million of additional costs which will reduce 
profit in the year to 31 march 2012 and the loss 
for the plant will be around twice that amount the 
following year as fixed costs increase the increase 
in fixed costs includes the impact of additional 
depreciation as the plant is brought back into 
operation we plan to operate the two plants in 
such a way as to minimise the additional fixed 
costs incurred and expect to achieve good levels 
of operational leverage as volumes increase 
in may 2009 following the significant increase  
in manufacturing yields achieved during the 2009 
financial year we announced the mothballing of 
the mcintosh facility and that production of all 
splenda
®
 sucralose would take place at our 
singapore facility at that time we recognised an 
impairment of £97 million and took a provision of 
£55 million to cover the cash costs associated 
with mothballing mcintosh in anticipation of cash 
payback over three years in restarting mcintosh 
we expect to reverse approximately £50 million of 
this impairment this financial year adjusting the 
original amount by the notional depreciation over 
the last two years and for some equipment which 
needs to be replaced we expect to incur a further 
£13 million of capital expenditure this financial 
year to bring the plant back into operation and 
will employ more working capital once we restart 
production we have achieved the annual savings 
from the mothballing as anticipated but expect 
to be able to release approximately £20 million of 
the original £55 million provision this financial year 
once we recommission the facility this saving 
more than covers the cash costs of the restart
food systems
during the year sales from food systems 
increased by 2 3 in constant currency to 
£186 million 2010 – £183 million impacted by 
weaker second half volume on the back of tougher 
trading conditions in some markets notably 
russia volume growth of 4 was driven by 
increases in asia pacific the usa and south africa 
we continue to leverage our product formulation 
expertise to provide costeffective solutions for our 
customers against a backdrop of high and rising 
prices in raw materials 
outlook
in speciality food ingredients we anticipate the 
current steady demand patterns to continue and 
a year of good sales growth the lower sucralose 
manufacturing costs are now reflected in the 
performance of this division and accordingly the 
level of profit growth in the coming financial year  
is expected to be more modest than the strong  
result achieved in financial year 2011
we anticipate the current 
steady demand patterns to 
continue and a year of good 
sales growth 
14   tate  lyle annual report 2011
business review speciality food ingredients shareholder information
business review governance financial statements
tate  lyle annual report 2011   15
main	 locations customers products
sales operating profit operating cashflow
£157m
11
1
£99m
bulk ingredients manufactures and markets a range of 
products including nutritive sweeteners industrial starches 
ethanol acidulants and animal feed for food and beverage 
industrial and agricultural customers around the world  
bulk ingredients also partners with an increasing number  
of biobased materials companies seeking expertise in  
the commercialisation of green chemistry fermentation  
one such partnership is our joint venture with dupont  
which manufactures biopdo
™
 a biobased ingredient  
used in the textile and plastics industries
business review bulk ingredients
matt wineinger
president
summary of financial results
year to 31 march change
£m unless stated otherwise 2011 2010 reported
constant  
currency
sales 1 915 1 745 10 7
adjusted operating profit 157 136 15 11
margin 82 78 40bps
3
30bps
3
£191 5m
americas
dayton ohio
decatur  illinois
duluth minnesota
lafayette indiana
loudon t ennessee
santa rosa brazil
cali colombia 
2
guadalajara 
mexico 
2
emea
razgrad bulgaria 
2
  
szabadegyháza 
hungrana plant 
hungary 
2
casablanca 
morocco
boleraz slovakia 
2
adana t urkey 
2
•	 	 liquid 	 sweeteners 	 including 	 cor n	
sugar dextrose and glucose
•	 	 industrial 	 star ches	
•	 	 citric 	 acid
•	 biofuels
•	 	 animal 	 feed 	 including 	 cor n 	 gluten	 
feed and corn gluten meal
•	 	 lar ge 	 multinational 	 food	 
and beverage manufacturers
•	 	 paper	 and	 boar d	 pr oducers
•	 	 fuel and gasoline suppliers
•	 	 t extile 	 manufactur ers
•	 	 animal 	 feed 	 compounders
1 constant currency change
2 joint venture
3 basis points one hundred basis points equates to one percentage point coproduct prices were 
supported by fundamental 
demand and improved 
through the year on the back 
of higher corn and competing 
commodity prices 
16   tate  lyle annual report 2011
market conditions
whilst us domestic demand for nutritive 
sweeteners in the 2011 financial year continued 
its gradual longterm downward trend strong 
seasonal demand and increased exports of corn 
sweeteners to mexico offset this impact higher 
mexican demand was driven by high domestic 
sugar prices in the mexican market and a relative 
recovery of the mexican peso against the us dollar 
which accelerated the substitution of cane sugar 
with corn sugar 
 
 
 
 
 
 
 
 
 
us corn yields for the 2010 harvest were low 
compared with recent experience the fall in 
production is expected to reduce stocks to their 
lowest level since 1996 and the forecast stocks
touse ratio for the end of the current crop year is 
the lowest on record the latest planting intentions 
reported by the united states department of 
agriculture usda indicate that planted corn 
would increase to the second highest level on 
record driven by high corn prices the european 
corn price has followed similar trends to the  
us market 
in the european sweetener market world  
sugar prices rose above the eu preferential rate 
thereby discouraging traditional suppliers of cane 
sugar some of whom also experienced harvest 
difficulties from supplying to europe this supply 
restriction was compounded by lower beet sugar 
yields from the harsh winter resulting in higher 
sugar prices the selling price of isoglucose corn 
sugar which is closely correlated to the sugar 
price rose towards the end of the financial year  
but not at the same rate as corn prices resulting  
in a squeeze on margins 
although demand for industrial starches in the usa 
recovered modestly it still remains significantly 
below the levels experienced before the economic 
downturn the demand for industrial starches 
in europe also improved with demand for corn 
starches receiving an additional boost on the back 
of the poor potato harvest in us ethanol whilst 
cash margins have increased levels of profitability 
within the industry remain low overall
coproduct prices were supported by fundamental 
demand and improved through the year on the 
back of higher corn and competing commodity 
prices the market for us corn gluten feed was 
boosted by the reopening of european markets  
to euapproved genetically modified varieties and 
by china’s increased imports of competing feed 
products demand for corn gluten meal primarily 
for pet food remained firm and exports to latin 
america were stronger as aquaculture companies 
continued to increase production in addition 
demand for corn oil remained strong 
financial performance
sales increased by 10 7 in constant currency 
to £1915 million 2010 – £1745 million adjusted 
operating profit increased by 15 to £157 million 
11 in constant currency driven by strong 
levels of coproduct income and an improved 
performance from our ethanol business despite 
lower margins in sweeteners and industrial 
starches the effect of exchange translation  
was to increase operating profit by £5 million 
this division comprises three broad product 
platforms 	 namely 	 sweeteners 	 industrial 	 star ches	
acidulants and ethanol and coproducts
sweeteners
in the americas bulk corn sweetener volumes 
increased by 14 and sales by 3 decreased  
by 1 in constant currency to £734 million  
2010 – £715 million as anticipated at the time 
of the announcement of our contracting round in 
january 2010 corn sugar hfcs unit margins 
were somewhat below the comparative period 
after taking into account lower input costs 
whilst we experienced firm demand patterns for 
corn sugar 55 and 42 in mexico and strong us 
domestic demand as good weather provided an 
uplift in seasonal demand the higher volumes did 
not offset the lower margins which had resulted 
from the 2010 calendar year pricing round and 
profits for the full year were below the  
comparative period 
adjusted	 operating	 pr ofit	
increased by 15 11 in 
constant currency 
business review bulk ingredients in europe sales of bulk corn sweeteners increased 
by 10 14 in constant currency to £123 million 
2010 – £112 million volumes increased by 11 
year on year reflecting the increased capacity 
from our slovakian expansion and increased 
quotas unit margins were lower particularly in 
the second half on the back of higher corn costs 
which increased at a faster rate than the price of 
sugar which effectively determines the price for 
isoglucose corn sugar in the eu
operating profits from almex our mexican  
joint venture were up significantly on the 
comparative period reflecting higher volumes  
and improved pricing 
industrial starches acidulants and ethanol
sales of industrial starches acidulants and ethanol 
increased by 13 10 in constant currency to 
£709 million 2010 – £629 million 
industrial starch volumes grew by 8 whilst we 
have seen a modest recovery in market conditions 
margins continued to be under pressure in the usa 
where the market remains very competitive the 
performance for the year was below the prior year 
as the increased volumes were more than offset by 
lower unit margins in europe tighter supplyside 
conditions as a result of the poor starch potato 
harvest resulted in improved margins towards  
the end of the year  
 
 
 
 
 
 
 
 
 
whilst we experienced improved positive cash 
margins in us ethanol this product continued to 
generate a loss at the operating level at the end 
of the period we completed the sale of our fort 
dodge facility for cash consideration of £36 million 
resulting in an exceptional credit for the full year of 
£10 million 2010 – impairment of £217 million the 
disposal reduces our exposure to what remains a 
volatile and highly commoditised industry 
whilst citric acid sales increased within our 
acidulants business profits were lower than  
the prior year as a result of higher input costs 
as in the prior year the biopdo
™
 joint venture 
broke even in the 2011 financial year 
coproducts
sales of coproducts increased by 21  
19 in constant currency to £349 million  
2010 – £289 million
the impact of rising us corn prices throughout 
the year resulted in additional profits of 
£16 million from coproducts compared with the 
prior year since over 80 of our corn grind is 
utilised to produce bulk ingredients the majority 
of this impact is recorded within this segment 
in anticipation of potential supply tightness in 
the run up to the new harvest we plan to hold 
our silos full to the beginning of the harvest year 
with the larger volumes in inventory combined 
with the higher price of corn we increased the 
amount of working capital tied up in us corn 
inventories by approximately £126 million at 
31 march 2011 european corn prices also rose 
increasing coproduct sales however hedging 
options are more limited than in the usa so 
that higher corn prices had a modest negative 
impact on profitability in the second half 
outlook
in bulk ingredients we expect sweetener 
margins to remain flat calendar year on year 
with volumes slightly down as we diversify 
some grind to speciality food ingredients 
elsewhere industrial starches are expected  
to perform better particularly in europe  
but not sufficiently to offset more normal  
coproduct returns
in europe sales of bulk 
corn sweeteners increased 
by 10 14 in constant 
currency 
shareholder information
business review governance financial statements
tate  lyle annual report 2011   17 18   tate  lyle annual report 2011
remit
the innovation and commercial development 
icd group is a key enabler of tate  lyle’s 
strategy established on 1 june 2010 its remit  
is to drive longterm growth across tate  lyle
icd brings together three areas – product 
development marketing and platform 
management – into one global team providing 
an integrated approach to developing and 
commercialising innovation
while icd supports both of tate  lyle’s global 
business units it concentrates mainly on growing  
our speciality food ingredients division as a 
result icd’s resources are predominantly focused 
on three broad areas within the global speciality 
food ingredients market – sweeteners texturants 
and health and wellness 
within icd we have a dedicated open innovation 
team which looks to develop partnerships with 
universities customers and startups specialising 
in food science with a goal of bringing their new 
technologies or products to market 
icd is responsible for developing and  
managing the group’s innovation pipeline and 
also for launching commercially successful  
new products 
innovation centres and laboratories
icd is currently headquartered in decatur  
illinois usa but by early 2012 its global 
headquarters will be the new commercial  
and food innovation centre in chicago usa 
this new centre which will feature stateofthe
art laboratories a demonstration kitchen and 
sensory testing analytical and pilot plant facilities 
will give us the ideal facilities for working more 
closely with customers in this centre we will  
be able to develop solutions to meet their  
functional formulation and nutritional needs 
as well as the new centre in chicago icd has  
a research centre in lille france these two 
centres are supported by a global network of 
smaller regional applications laboratories in 
countries such as china germany argentina 
australia and south africa where our local 
applications specialists take our customers’ 
products from a written brief to prototype at high 
speed while ensuring the final product reflects 
local tastes we are currently building two more 
applications laboratories one in brazil and  
one in mexico 
pilot plants
icd also operates the group’s pilot plant 
facilities both laboratory scale and within our 
manufacturing facilities scaling up and testing 
formulations and ideas at our pilot plants allows  
us to assess the feasibility of new processes  
new products and new technology ensuring  
we get them right before investing in  
commercialscale processes 
market research
customer understanding drives all that we  
do we use market research to help us better 
understand the consumer our customers’ 
customer through our research programme 
icd measures consumers’ views on particular 
ingredients gets their opinions on the latest 
trends analyses their dietary habits and 
understands their attitudes towards ‘healthy’ 
food our research covers all the regions of  
the world we operate in giving us the insights 
necessary to offer tailormade solutions for  
our customers that we know will work in  
local markets 
business review innovation and commercial development
karl kramer
president
 the role of the innovation and commercial development team is  
to identify and develop new business opportunities and to create and 
commercialise new ingredients thereby providing longterm growth  
for tate  lyle  shareholder information
business review governance financial statements
tate  lyle annual report 2011   19
business review risk	management
the board of directors has overall responsibility  
for the group’s system of risk management and 
internal control the schedule of matters reserved  
to the board ensures that the directors control  
among other matters all significant strategic  
financial and organisational issues
approach
the group’s enterprisewide risk management  
and reporting process helps management to  
identify assess prioritise and mitigate risk  
the process involves an ongoing programme of 
workshops facilitated by the risk management 
function held around the group the risks identified 
are collated and reported through functional and 
divisional levels to the group executive committee 
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 the output is then reviewed by the board 
responsibility for managing each key risk and the 
associated mitigating controls is allocated to an 
individual executive within each division as part  
of the process senior executive management 
formally confirms that these key risks are being 
managed appropriately within their operations  
and that controls have been examined and are 
effective the confirmations and any exceptions are 
discussed at the audit committee and corporate 
responsibility committee once a year 
during the year ended 31 march 2011 the risk 
management process was enhanced further 
through an exercise undertaken by the board of 
directors and the group executive committee to 
consider the nature and extent of the group’s risk 
appetite the results of this exercise are being used 
as part of the group’s strategic planning activities 
and in considering ongoing mitigating actions
the group’s risk management process 
continues to follow the committee of sponsoring 
organizations of the treadway commission 
coso enterprise risk framework the coso 
framework provides a process to manage the 
risk of failure to achieve business objectives and 
assurance against material loss or misstatement 
key risks
key risks and uncertainties identified as part of  
the risk management process undertaken during 
the year together with some of the mitigating 
actions that we are taking are set out below it is 
not possible to identify or anticipate every risk that 
may affect the group 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
tate  lyle could be affected by a number of risks which might  
have a material adverse effect on our reputation operations and  
financial performance 
risk impact and description examples of mitigating actions
failure to act safely  
and to maintain the  
safe and continuous  
operation of our  
facilities
the safety of our employees  
contractors suppliers and the 
communities in which we operate is 
paramount we must operate within 
local laws regulations rules and 
ordinances relating to health safety and 
the environment including emissions 
the operation of plants involves many 
risks including failure or substandard 
performance of critical equipment 
improper installation or operation of 
equipment failure of critical supplier 
and natural disasters if these risks 
cause a temporary or permanent 
stoppage in production this could  
have a material adverse effect  
on the group
•  corporate responsibility committee in place
•  board annual review of group safetyenvironmental 
performancepolicies
•  separate central global function established group 
operational efficiency and sustainability outside business  
unit control to set and monitor standards
•  health and safety policies and procedures at all facilities with 
dedicated staff to ensure policies are embedded and measured
•  environmental management systems at production facilities 
•  business continuity plans in place to enable supply  
as quickly as practicable of product to customers from 
alternative sources in the event of a natural disaster or  
major equipment or plant failure backed by appropriate 
insurance coverage against business interruption
• 	 	 	 periodic 	 r eview 	 of 	 critical 	 supply 	 or 	 supplier 	 dependencies	 
in principal manufacturing operations
failure to maintain the 
quality of our products 
and high standards of 
customer service
the safety of consumers of our  
products is critical poor quality  
or substandard products or poor 
customer service could have a  
negative impact on our reputation  
and relationships with customers
•  central global function group operational efficiency  
and sustainability manages groupwide quality process  
and procedures
• 			 pr oduct 	 safety 	 and 	 quality 	 policies 	 and 	 pr ocedur es 	 in	 
place to prevent contamination
•  dedicated staff at all locations to ensure policies are 
embedded and measured
•  thirdparty audits completed
•  recall simulation exercises undertaken 20   tate  lyle annual report 2011
business review risk	management
risk impact and description examples of mitigating actions
failure to attract  
develop and retain  
key personnel
performance knowledge and skills  
of employees are central to success  
we must attract integrate and retain  
the talent required to fulfil our ambitions 
and deliver the group’s strategy inability 
to retain key knowledge and adequately 
plan for succession could have a  
negative impact on company 
performance
•    remuneration policies designed to attract retain  
and reward employees with ability and experience  
to execute group strategy
•    talent strategy to provide opportunities for  
employees to develop careers
•    single global performance appraisal system in place
•    new commercial and food innovation centre in 
chicago usa to help attract and retain new  
talent to the group
noncompliance  
with legislation and 
regulation
the group operates in diverse markets 
and therefore is exposed to a wide range 
of legal and regulatory frameworks we 
must understand and comply with all 
applicable legislation any breach could 
have a financial impact and damage  
our reputation
•    regulatory managers monitor changes in  
legislation and develop action plans
•    legal teams maintain compliance policies in  
areas such as antitrust money laundering and  
anticorruption laws and provide ongoing training  
to employees 
•    external consultants provide quarterly reports  
on regulatory change
fluctuations in prices 
offtake and availability 
of raw materials energy 
freight and other  
operating inputs
margins may be affected by fluctuations 
in crop prices due to factors such as 
harvest and weather conditions crop 
disease crop yields alternative crops and 
coproduct values in some cases due to 
the basis for pricing in sales contracts or 
due to competitive markets we may not 
be able to pass on to customers the full 
amount of raw material price increases  
or higher energy freight or other  
operating costs
•  strategic relationships with suppliers and 
trading companies
•  multiplesource supply agreements for key 
ingredient supplies
•  balanced portfolio of supply and tolling 
contracts in operation with customers to 
manage balance of raw material prices and 
product sales prices and volume risks 
•  raw material and energy purchasing policies  
to provide security of supply 
•  derivatives used where possible to hedge 
exposure to movements in future prices  
of commodities
failure to protect 
intellectual property 
our commercial success depends in 
part on obtaining and maintaining patent 
protection on certain products and 
technology we must successfully defend 
patents against thirdparty challenges  
or infringements
•   group legal department supported by expert 
patent lawyers monitors all patents 
•    group intellectual property ip committee in 
place chaired by the president of innovation 
and commercial development to oversee the 
group’s ip management 
•    organised and secure process for identifying 
and recording innovations trade secrets and 
potential patentable ideas
competitors may achieve 
significant advantage 
through technological  
step change or higher 
service levels 
competitors could introduce a major 
technological step change such as 
significantly improving the efficiency of a 
production process and lowering costs 
and thereby commoditising products 
or introduce a new product with better 
functionality which in turn could lead to  
a decline in our sales andor profitability 
we must ensure we exceed or at least 
match competitors’ service and  
quality performance
•    innovation and commercial development  
team to produce innovations in product 
development applications manufacturing 
technology and customer services
•    global key account managers in place for  
major customers
•    improved customer relationship management 
capabilities as part of the programme to 
implement a common global isit platform  
and global support services shareholder information
business review governance financial statements
tate  lyle annual report 2011   21
risk impact and description examples of mitigating actions
failure to implement the 
group’s programme to 
transform its operational 
capabilities
the group has committed to a 
programme to transform its operational 
capabilities primarily by implementing a 
common global isit platform and global 
support services if this programme is not 
implemented as planned this would have 
an adverse impact on the group’s ability 
to achieve its strategy
•	 	 dedicated 	 r esour ces 	 allocated 	 to 	 the 	 pr oject
•	 	 pr oject 	 scope 	 set 	 out 	 in 	 detailed 	 legal 	 contracts	
with external system integrator and other 
providers with appropriate governance and 
remedy mechanisms
•	 	 detailed 	 pr oject 	 implementation 	 plan 	 subject 	 to	
both internal and external audit and review
•	 	 formal 	 steering 	 committee 	 executive	
management and boardaudit committee 
review of project progress against agreed 
milestones and timelines
failure to counter  
negative perceptions  
of the group’s  
products
we must be fully prepared to counter 
unexpectedunfounded negative publicity 
about our products
•    innovation and commercial development  
and regulatory teams substantiate relevant 
product claims 
•    media relations department monitors group 
press coverage and has action plans to deal 
with any negative publicity
failure to identify 
important consumer  
trends and innovate  
could impact the  
business’s ability  
to grow
falling behind the curve on emerging 
dietary trends andor an inability to 
innovate could impact the delivery of the 
group’s strategy this would impact its 
performance and reputation 
•  innovation and commercial development team  
works closely with customers and advisors to  
identify emerging trends 
•  consumerfacing research to ensure we are 
aware of consumers’ needs and expectations
•  global key account managers in place for  
major customers
•    new commercial and food innovation centre  
in chicago usa will enable scientists marketing  
sales and technical experts to collaborate more  
closely with customers
•  recruitment and training policies in place to  
strengthen and upgrade staff skill sets
failure to manage  
capital expenditure and 
working capital and 
deliver key projects 
we must manage our finances within 
strictly controlled parameters particularly 
when external financial conditions are 
uncertain and highly changeable the 
change programme currently being 
undertaken by the group consists of a 
number of projects which if not delivered 
successfully could impact the group’s 
performance and reputation 
•    significant projects approved and monitored  
by the board
•    debt and working capital levels monitored  
constantly and reported monthly to the board
•    capital expenditure procedures to control and  
monitor allocation and spend 
•    major or key projects have dedicated teams
•    external resources and expertise used where  
required or as appropriate
failure to maintain an 
effective system of  
internal financial  
controls 
without effective internal financial 
controls we could be exposed to financial 
irregularities and losses from acts which 
could have a significant impact on the 
ability of the business to operate we 
must safeguard business assets and 
ensure accuracy and reliability of records 
and financial reporting
•    authorisation policies ensure that key tasks  
are segregated to safeguard assets 
•    detailed internal finance and capital expenditure 
manuals set out procedure 
• 			 gr oup 	 financial 	 performance 	 monitor ed 	 with 	 
monthly board reports and regular forecasting 
•    chief executive and chief financial officer  
undertake detailed quarterly business and  
financial reviews
• 		 inter nal 	 audit 	 function 	 pr ovides 	 assurance 22   tate  lyle annual report 2011
business review	additional	financial	information
energy costs
energy costs for the year were £170 million  
2010 – £178 million a decrease of 4 7 in 
constant currency the improvement of £12 million in 
constant currency was due principally to lower prices 
£22 million and efficiency improvements £9 million 
partly offset by higher volumes £14 million and an 
unfavourable input mix £5 million we have covered 
the cost of almost 70 of our estimated energy 
needs for the 2012 financial year and while contracts 
have been secured at higher prices than in the 2011 
financial year we will look to mitigate some of the 
upward pressure through efficiencies 
exceptional items from continuing operations
year to 
31 march
2011
£m
year to 
31 march 
2010 
£m
business transformation costs 15 3
gain on disposal of assets net of 
  predisposal costs – fort dodge
 
10
 
–
impairment charges – fort dodge – 217
uk group pension scheme  
  changes
 
–
 
5
closure costs – 55
writedown of assets – 28
exceptional items 5 298
exceptional items within our continuing operations 
during the year totalled a net charge of £5 million 
on a pretax basis we recognised an exceptional 
gain of £10 million relating to the fort dodge facility 
which was sold on 30 march 2011 the facility was 
impaired in the previous financial year we have 
incurred an exceptional charge of £15 million in 
relation to business transformation costs principally 
restructuring associated with the new commercial 
and food innovation centre in chicago usa and  
the implementation of a common global isit 
platform and global support services 
the tax impact on continuing net exceptional items 
is a charge of £10 million in addition an exceptional 
tax credit of £8 million has been recognised in 
respect of unrealised profit on inventory following 
the restructuring of our business this credit has no 
impact on cash paid or received 
exceptional items from continuing operations  
in the 2010 financial year comprised a £3 million 
charge relating to business transformation costs 
in speciality food ingredients an impairment 
charge of £217 million relating to the decision to 
mothball our fort dodge facility a £55 million charge 
relating to our decision to mothball the sucralose 
manufacturing facility in mcintosh alabama usa 
and the writeoff of £28 million of research and 
development assets from which we no longer expect 
to receive a commercial benefit we also recognised 
a £5 million exceptional gain in relation to changes 
to the uk group pension scheme the exceptional 
tax credit on continuing operations was £117 million 
primarily due to the deferred tax asset related to the 
impairment of the fort dodge facility an exceptional 
tax credit of £15 million was also recognised in 
respect of the release of various tax provisions
basis of preparation 
adjusted performance
adjusted profit is reported as it provides  
both management and investors with valuable  
additional information on the performance of  
the business the following items are excluded 
fr om 	 adjusted 	 pr ofit
•	 	 	 r esults 	 of 	 discontinued 	 operations 	 including	
gains and losses on disposal note 12 and  
note 37
•	 	 exceptional 	 items 	 fr om 	 continuing 	 operations	
note 7 and
•	 	 amortisation 	 of 	 intangibles 	 acquir ed 	 thr ough	
business combinations
this adjusted information is used internally  
for analysing the performance of the business  
a reconciliation of reported and adjusted 
information is included in note 43
impact of changes in exchange rates
our reported financial performance has been 
positively impacted this year by exchange rate 
translation in particular due to the strengthening 
of the average us dollar exchange rate against 
sterling the movement in exchange rates had led 
to increased profits and a reduction in net debt 
as a result of the translation of accounts recorded 
in foreign exchange the average and closing 
exchange rates used to translate reported  
r esults 	 wer e 	 as 	 follows
average rates closing rates
2011 2010 2011 2010
us 	 dollarsterling 155 161 160 152
eur osterling 119 113 113 112
segmental analysis
following the change of the organisational 
structure announced in may 2010 the group 
restructured its internal organisation into four 
distinct 	 segments 	 speciality 	 food 	 ingr edients	
bulk ingredients sugars and central costs sugars 
was subsequently classified as discontinued 
following the announcement on 1 july 2010 of the 
disposal of eu sugars and the launch of processes 
to sell the remaining businesses within the sugars 
division comparative information has been 
reclassified accordingly 
central costs
central costs which include head office treasury 
and reinsurance activities increased by £11 million 
to £42 million reflecting the costs associated with 
strengthening the group’s senior management 
team costs associated with our financing portfolio 
and oneoff costs of £6 million in the first half 
relating to the review of the group’s activities  
the effect of exchange translation was to  
increase central costs by £1 million  shareholder information
business review governance financial statements
tate  lyle annual report 2011   23
these items relate to the impact of major  
turbulence in the supply of raw sugar to the  
eu during the period prior to closing which 
resulted in an increase in certain rolling reexport 
commitments of the business arising under the eu 
sugar regime the group believes that its position 
is fully supported and as such will be robustly 
defended no provision in respect of outstanding 
items has been recorded
earnings per share
adjusted diluted earnings per share from  
continuing operations was 457p 2010 – 337p 
an increase of 36 34 in constant currency as 
a result of higher operating profits lower finance 
costs and the reduction in the effective tax rate  
on the same basis basic earnings per share was 
higher by 37 36 in constant currency at  
465p 2010 – 339p
total basic earnings per share at 353p was higher 
than the prior year as the 2010 basic earnings 
per share of 33p was impacted by significant 
exceptional costs
dividend
the board is recommending a 5 increase in the 
final dividend to 169p 2010 – 161p making a full 
year dividend of 237p 2010 – 229p per share 
up 35 on the prior year subject to shareholder 
approval the proposed final dividend will be due 
and payable on 5 august 2011 to all shareholders 
on the register of members at 1 july 2011 in 
addition to the cash dividend option shareholders 
will also be offered a dividend reinvestment plan 
drip alternative the drip replaces the scrip 
alternative that was previously available  
to shareholders
assets
gross assets at 31 march 2011 were £3051 million 
£237 million lower than the previous year principally 
as a result of the disposal of eu sugars and 
molasses net assets increased by £119 million 
to £973 million driven by the profits generated 
in the year and actuarial gains relating to our 
post retirement plans partially offset by dividend 
payments and foreign exchange losses on the 
translation of overseas subsidiaries
postr etir ement 	 benefits
we maintain pension plans for our employees in a 
number of countries some of these arrangements 
are defined benefit pension schemes and although 
we have closed the main uk scheme to future 
accrual and commenced the process for closing 
the us schemes to future accrual during the year 
legacy obligations remain in the usa we also 
provide medical and life assurance benefits as  
part of the retirement package 
net finance expense
the net finance expense from continuing 
operations decreased from £72 million to 
£58 million principally as a result of lower pension 
interest expense we were not able to benefit fully 
from the decrease in average net debt due to the 
fixed nature of our gross borrowings 
however the net interest charge is expected to  
be significantly lower in the 2012 financial year  
as a result of lower levels of average net debt  
a reduction of our average effective interest rate 
principally as a result of the repayment of our 
us300 million bond in june 2011 and a change 
from a £4 million pension interest expense in 
the year ended 31 march 2011 to an anticipated 
pension interest credit of £5 million in the year 
ending 31 march 2012
taxation
the taxation charge from continuing operations 
before exceptional items and amortisation of 
acquired intangible assets was £49 million 
2010 – £41 million as a result of higher pretax 
adjusted profit the effective rate of tax on adjusted 
profit decreased to 185 2010 – 208 as a 
result of the geographic mix of profits and also  
the resolution of some historical tax issues 
the effective tax rate for the 2012 financial year  
is expected to remain broadly in line with this year’s 
effective tax rate assuming the geographic mix of 
profits is in line with our expectations
discontinued operations
discontinued operations comprise our former 
sugars division principally our former eu sugars 
business which we sold in september 2010 
our former molasses business which we sold in 
december 2010 our former international sugar 
trading business and our vietnam and israeli 
sugar interests which are reported as assets held 
for sale on 20 april 2011 we announced we had 
entered into a conditional agreement to sell our 
vietnam business 
sales from discontinued operations for the year 
decreased to £590 million from £1074 million as a 
result of the sale of eu sugars and molasses part 
way through the year the operating loss from our 
discontinued operations totalled £45 million after 
exceptional losses of £43 million 2010 – profit of 
£50 million after exceptional profits of £22 million 
the exceptional pretax loss for the year of 
£43 million comprises the £55 million loss 
on disposal of eu sugars booked during the 
year partially offset by the £12 million profit 
on the disposal of molasses taxation on our 
discontinued operations was a £16 million 
credit 2010 – £11 million charge after reflecting 
an exceptional tax credit of £19 million 
2010 – £5 million charge the loss from
discontinued operations after taxation for the  
year was £29 million 2010 – profit of £40 million  
the final loss on disposal of eu sugars is subject  
to closing adjustments arising from the agreement 
of post completion statements the process to 
reach such agreement is ongoing and items 
totalling £54 million remain outstanding and are 
expected to be submitted for adjudication to  
an independent expert  24   tate  lyle annual report 2011
business review additional	financial	information
net interest paid decreased by £13 million to 
£46 million principally as a result of a decrease in 
interest paid on our bank and other borrowings 
income tax paid was £31 million 
capital expenditure of £58 million was 64 of the 
depreciation charge reflecting the transition to our 
new group capital allocation process including 
the investments we will be making in growth and 
business transformation and the additional capital 
investment required to restart production at the 
mcintosh facility we expect capital expenditure 
to be up to 14 times depreciation in the 2012 
financial year 
free cash inflow representing cash generated 
from continuing operations after working capital 
interest taxation and capital expenditure was 
£190 million £224 million lower than the prior year 
principally as a result of the increases in working 
capital discussed earlier 
cash outflow related to discontinued operations 
was £105 million compared with an inflow of 
£97 million in the prior year due to the timing of 
working capital flows ahead of the disposal of 
eu sugars and molasses net disposal proceeds 
from the sale of eu sugars and molasses were 
£280 million 
equity dividends paid were £70 million £33 million 
lower than the previous year due to the high take 
up of the scrip dividend 
financial risk factors
our key financial risk factors are market risks  
such as foreign exchange transaction and 
translation exposures and credit and liquidity risks 
please refer to note 21 of the financial statements 
on page 89 for a discussion of these risk factors
off balance sheet arrangements
in the ordinary course of business to manage  
our operations and financing we enter into certain 
performance guarantees and commitments for 
capital and other expenditure
the aggregate amount of indemnities and other 
performance guarantees on which no material loss 
has arisen including those related to joint ventures 
and associates was £1 million at 31 march 2011 
2010 – £13 million
the net deficit on our post retirement  
obligations reduced by £118 million to £139 million 
at 31 march 2011 from £257 million in the prior  
year principally as a result of increasing asset 
valuations and cash contributions during the year 
the uk pension obligations relating to eu sugars 
and molasses remained with the group
net debt
net debt fell by £350 million to £464 million  
2010 – £814 million driven by free cash flow of 
£190 million from the continuing businesses and 
£316 million relating to the sale of eu sugars 
molasses and fort dodge these inflows were 
partially offset by cash utilised by the discontinued 
businesses amounting to £105 million principally 
the repayment of letters of credit ahead of  
disposal and dividend payments of £70 million  
in addition the group’s debt is primarily 
denominated in us dollars and euros to match  
the underlying currencies of the operational cash 
flows and net assets and therefore as sterling  
has strengthened against the us dollar and the 
euro net debt reported in sterling has reduced  
by £27 million
during the year net debt peaked at £836 million in 
may 2010 the average net debt was £661 million 
a reduction of £359 million from £1020 million in 
the prior year
cash flow
year to 
31 march
2011
£m
year to 
31 march 
2010 
£m
adjusted operating profit from  
  continuing businesses
321 268
depreciationamortisation 96 105
working capital 101 186
sharebased payments 9 4
operating cash flow 325 563
capital expenditure 58 60
operating cash flow less  
  capital expenditure
267 503
net interest and tax paid 77 89
free cashflow 190 414
operating cash flow from continuing operations 
was £325 million a decrease of £238 million 
compared with the prior year primarily due to 
increases in working capital of £101 million 
2010 – reduction of £186 million as we took the 
decision to increase us inventories £126 million  
in the second half of the year this action was taken 
in response to the anticipated tight supply situation 
running up to the next corn harvest we also made 
further progress to reduce working capital tied  
up in payables and receivables  shareholder information
business review governance financial statements
tate  lyle annual report 2011   25
going concern
the group’s business activities together with 
the factors likely to affect its future development 
performance and position are set out in this 
business review the financial position of the 
group its cash flows liquidity position and 
borrowing facilities are described in the same 
sections in addition note 21 to the financial 
statements includes the group’s objectives 
policies and processes for managing its capital  
its financial risk management objectives details  
of its financial instruments and hedging activities 
and its exposures to credit risk and liquidity risk
as set out in the sections and note referenced 
above the market conditions of the areas in  
which the group operates have been affected  
and are likely to continue to be affected by  
large movements in input prices however  
with some 75 of revenues from food and 
beverage ingredients the group has a measure 
of resilience although not immunity to economic 
challenges in addition the group has access 
to considerable financial resources through its 
facilities as described in note 21 to the financial 
statements in making their assessment of the 
going concern basis the directors have reviewed 
the maturities of these facilities the headroom 
available from them and the group’s ability to  
meet the covenant requirements of certain of  
them as a consequence the directors believe  
that the group is well placed to manage its 
business risks successfully
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 
accordingly they continue to adopt the going 
concern basis in preparing the annual report  
and accounts
we aim to optimise financing costs in respect of 
all financing transactions where it is economically 
beneficial we choose to lease rather than purchase 
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 £173 million 2010 – £195 million 
and related primarily to railcar leases in the usa 
rental charges for the year ended 31 march 2011 
in respect of continuing operations were  
£23 million 2010 – £24 million
use and fair value of financial instruments
in the normal course of business we use both 
derivative and nonderivative financial instruments
the fair value of group net borrowings at the year 
end was £504 million against a book value of 
£464 million 2010 – fair value £823 million book 
value £814 million
derivative financial instruments used to manage 
the interest rate and currency of borrowings had 
a fair value of £4 million liability 2010 – £9 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 asset 
2010 – £6 million liability when managing 
currency exposure we use spot and forward 
purchases and sales and options
the fair value of other derivative financial 
instruments accounted for as held for trading  
was £2 million asset 2010 – £22 million
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 related 
hedging relationship agreements financial and 
commodity forward contracts and options  
and commodity futures the value of certain  
items of merchandisable agricultural commodities 
that are included in inventories are based on 
market prices 26   tate  lyle annual report 2011
business review corporate responsibility
our approach to corporate responsibility cr
is enshrined in our business code of conduct 
the code a copy of which can be found on our 
website wwwtateandlylecom the code applies 
unconditionally to all whollyowned parts of 
the group and we also seek 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 
applying the code requires proactive management 
at every level within the company
the board reviews tate  lyle’s cr policies  
and performance annually and the chief  
executive is the board member accountable  
for all aspects of cr 
impr oving 	 our 	 management 	 of 	 cr
following both the group strategic review and 
board effectiveness review we carried out in 2010 
details of which are in the annual report 2010  
we enhanced how we oversee manage and report 
on 	 our 	 cr 	 risks 	 and 	 performance 	 including
•	 	 we 	 established 	 a 	 new 	 boar d 	 committee	 
the cr committee to review and monitor  
the processes and measures used to manage 
social environmental and ethical risks details 
of the committee’s membership attendance 
and key activities are on page 42 the 
committee’s terms of reference are available  
on our website wwwtateandlylecom
•	 	 we 	 r eor ganised 	 cr 	 activities 	 under 	 a 	 new	 
global unit group operational efficiency  
and sustainability goes the group vp   
goes reports directly to the chief executive 
who retains overall responsibility for cr  
as part of this reorganisation we also  
created a new position vp sustainability  
with specific responsibility for driving forward 
our sustainability work and communicating  
with stakeholders and
•	 	 with 	 the 	 help 	 of 	 our 	 inter nal 	 audit 	 function	 
and external consultants urs scott wilson  
we carried out a review of cr performance  
data presented in the annual report it resulted 
in improvements to the way cr data is  
captured across the group and changes  
to how we measure and report performance 
we now report key performance indicators  
on a normalised absolute basis in line with 
industry practice
reporting 	 parameters
we report safety and environmental performance 
by calendar year because we are required to do so 
for other regulatory reporting assertions made in 
this cr section have been verified by our internal 
audit function and the processes for measuring our 
carbon footprint have been externally reviewed  
by urs scott wilson
this year we have reorganised our reporting of cr 
issues for ease of reference bringing together into 
one section our reports on safety our people the 
environment and communities next year we plan 
to report using a stakeholder model – consisting 
of workplace marketplace the environment and 
communities – to reflect the integral importance  
of our stakeholders to our decisionmaking 
safety 
we have no higher priority than safety ensuring 
safe and healthy conditions for employees 
contractors and visitors at all our locations is 
essential to our operation as a successful business
overview of the year
whilst our safety performance at most of  
our locations improved in 2010 and our safety 
performance continues to compare favourably 
against the industry the group’s overall safety 
performance deteriorated in 2010 we were deeply 
saddened by the death of one employee at our 
jointventure plant in adana turkey as mentioned 
in the annual report 2010 three other employees 
also suffered serious injuries whilst all three 
have now returned to their old positions these 
incidents contributed to the overall deterioration 
in safety performance this is not acceptable and 
we are taking action to enhance our safety culture 
throughout tate  lyle 
managing safety
maintaining a consistently safe and healthy 
workplace for our people requires effective 
proactive management during the year we 
undertook a comprehensive review of our 
approach to managing safety as a first step  
in august 2010 we introduced a ‘call to action’  
to standardise best practice and help embed  
a safety culture groupwide – an effort greatly 
helped by our restructuring as an integrated  
global company and the subsequent global 
management of safety initiatives policies  
and programmes
	 a t 	 t a t e 	  	 l yl e 	 w e 	 se e 	 t h e 	 co m p a n y ’ s 	 p er f o r ma n ce 	 i n 	 fi n a n c i a l  	
operational social and environmental terms they are interdependent 
and all contribute to creating value which is why corporate responsibility 
measures are included in our group key performance indicators 
javed ahmed chief executive shareholder information
business review governance financial statements
tate  lyle annual report 2011   27
2008 2009 2010
182
109
07 069
156
138
employees
contractors
recordable incident rate
number of injuries requiring treatment beyond 
rst aid per 200000 hours
pr ojects	 and	 activities
we implemented a number of initiatives as part  
of	 the	 call	 to	 action
•	 	 the	 chief	 executive	 and	 all	 his	 dir ect	 r eports	 ar e	
closely involved in our safety auditing system
•	 	 we	 commissioned	 exter nal	 safety	 consultants	
dupont to conduct a groupwide perception 
survey and field assessments leading to a 
safety improvement plan that includes action 
plans for all plants
•	 	 we	 have	 standar dised	 accident	 investigation	
procedures health and safety policies and 
procedures reporting of performance including 
nearmisses and communications across  
the group and
•	 	 we	 have	 established	 global	 forums	 to	 shar e	
best practice worldwide
results	 for	 the	 2010	 calendar	 year
following feedback on last year’s report this  
year we rationalised the way we present data 
into two key measures recordable incident rate 
and losttime accident rate in accordance with 
occupational safety  health administration 
osha the recognised global industry standard  
in line with best practice and transparency we 
report here in normalised absolute numbers  
and use our group safety index which we  
reported publicly in previous years as an  
internal management tool
employee safety results
•	 	 recor dable 	incident rate improved by 1
•	 	 losttime 	 accident 	 rate 	 worsened 	 by 	 59
the us corn refiners association cra safety 
statistics are an important measure for us our 
sagamore plant won three cra awards relating  
to employee safety this year 
contractor safety results 
•	 	 recor dable 	incident rate worsened by 13
•	 	 losttime 	 accident 	 rate 	 worsened 	 by 	 39
benchmarking results
we benchmark our safety performance against a 
recognised global leader in safety dupont whilst the 
recordable incident rate for employees was slightly 
above benchmark the recordable incident rate for 
contractors was higher than benchmark the losttime
accident rates for both employees and contractors 
were also higher than benchmark the losttime 
accident rate and contractor performance continue  
to be a key area of focus for improvement
outlook
we are committed to implementing a worldclass 
safety culture that delivers worldclass safety 
performance while we are disappointed with  
our performance in 2010 we have an agreed safety 
strategy and objectives plan for 2011 which was 
prepared following the results of the work undertaken 
by dupont our global safety teams employees and 
contractors are working together to implement  
actions to deliver this plan in 2011
2008 2009 2010
064
036
029
046
089
064
losttime accident rate
number of recordable injuries sufciently serious 
to result in lost work days or restricted work 
activities per 200000 hours
employees
contractors
the smaller the number the better the performance  
our target is zero for every tate  lyle operation
safety performance
the smaller the number the better the performance  
our target is zero for every tate  lyle operation
 while in practice we make no distinction between employee and contractor safety 
and we report combined rates in our group key performance indicators on pages  
8 and 9 for regulatory reporting purposes we report on these groups separately latin america
15
asia pacic
5
europe middle east
and africa
34
north america
46
speciality food
ingredients
41
bulk ingredients
59
28   tate  lyle annual report 2011
our people 
we aim to have good ethical employment  
practices and standards across all our operations  
in line with our business code of conduct our 
policy is to reward our employees in order to  
attract retain and motivate the right people 
financial remuneration is an important but by  
no means exclusive part of this
employee profile
at 31 march 2011 tate  lyle employed 4111 
people across the group the decrease from 5666 
employees is mostly due to the sale of our sugars 
businesses these figures exclude any remaining 
sugars employees including those in vietnam 
although they were still employed by us on  
31 march 2011
employees by business unit
employees by geography
2011 	 the 	 jour ney 	 to 	 a	 
performancer elated 	 cultur e
we have seen significant changes in our  
company as we implement our new strategy  
we support and engage with our employees  
on this journey in a number of ways
•	 communication in changing times  
regular communication is more important  
than ever with the emphasis on open  
twoway discussion we explore the issues 
involved in transforming the business through 
a wide range of channels and media such as 
roadshows workshops conference calls and  
our refreshed staff magazine these activities 
include our communication and support 
programme for employees directly affected by 
strategic change namely the establishment of  
our new innovation centre in chicago usa  
and the establishment of a global shared  
services centre in łód ´ z poland 
business review corporate responsibility
•	 	 rewar d we have new structures for 
incentivising and rewarding employees 
including a new performancerelated group 
bonus plan and a sales incentive scheme 
consistent across all our locations our 
remuneration policy for directors is explained  
on page 45
•	 	 appraisal we have harmonised our  
employee appraisal system across the group 
and are seeking to assess performance in a 
consistent way
diversity and inclusion
we believe in equal opportunities regardless  
of gender sexual orientation age marital status 
disability race religion or other beliefs and ethnic 
or national origin our policies practices and 
regulations for recruitment training and career 
development promote equality of opportunity 
while being appropriate for the relevant market 
sector and country of operation our aim is to 
encourage a culture in which all employees have 
the opportunity to develop fully according to their 
individual abilities and the needs of the group  
the group remains committed to the fair treatment 
of people with disabilities regarding applications 
training promotion and career development  
an employee who becomes disabled would  
where appropriate be offered retraining
an important part of our cultural transformation 
is to become more globally diverse and inclusive 
both in our internal talent pool and our range of 
potential recruits we have established a diversity 
and inclusion council to embed this approach  
in our operations
health and wellbeing
we share best practice across the company 
and work with healthcare partners to provide 
information advice and support on health issues 
our programmes are developed in line with local 
needs and cultures
outlook
our evolution into a global organisation  
demands a truly diverse workforce and this will 
be a key focus in our recruitment and retention 
policies we will also be working to further embed 
our new performance management systems  
and processes across the group shareholder information
business review governance financial statements
tate  lyle annual report 2011   29
environment
we seek to operate in a way that is as 
environmentally sustainable as practical while 
working continually to reduce our environmental 
impact further by using resources such as energy 
and water more efficiently and reducing waste we 
can also achieve reductions in operational costs 
per unit of production improving the company’s 
environmental sustainability therefore is not only 
good for the environment but can also be beneficial 
financially in recognition of this we are working on 
including an environmental sustainability measure 
in the group key performance indicators in next 
year’s report while continuing to report on our 
existing environmental metrics in this cr section
overview of the year
tate  lyle’s environmental policy and standards 
apply to all our activities globally and we aim to 
integrate environmental considerations into all 
major decisions we focus on those aspects of our 
direct operations that have the greatest potential 
impact 	 on 	 the 	 envir onment 	 these 	 comprise 	 our	
energy use and consequent carbon footprint  
our water use and waste 
2010 was an exceptional year for us in terms  
of environmental performance energy efficiency 
improved significantly as projects to improve 
ethanol distillation and dehydration at loudon 
tennessee usa and energy management at 
the decatur illinois usa and loudon refineries 
delivered their full benefits as a result our  
carbon footprint decreased meanwhile our  
water efficiency increased and waste volume  
was reduced through targeted efficiencies
managing our environmental performance
during 2010 we took several measures to improve 
the management oversight and reporting of 
envir onmental 	 performance 	 including
•	 	 implementing 	 one 	 standar d 	 envir onmental 	 audit	
programme across the group
•	 	 issuing 	 updated 	 detailed 	 envir onmental	
reporting guidance to ensure reporting on  
a standard and consistent basis and
•	 	 commissioning 	 exter nal 	 consultants 	 urs 	 scott	
wilson to review our processes for measuring 
our carbon footprint this led to enhancements 
to our reporting methodology and tools for 
measuring our carbon footprint in line with the 
relevant international reporting standards
results 	 for 	 the 	 2010 	 calendar 	 year
the data presented here outline the environmental 
performance of our global manufacturing facilities 
including joint ventures where we have operational 
management control or influence 
the graphs on page 30 show our progress  
in 	 calendar 	 year 	 2010 	 versus 	 2009
•	 	 energy use per tonne of production reduced 
by 	 9 due to energy efficiency projects and 
improvements in plant utilisation
•	 	 primary carbon footprint from manufacturing 
energy 	 use 	 r educed 	 by 	 10 	 per 	 tonne 	 of	
production resulting largely from these energy 
efficiency improvements 
•	 	 w ater 	 use 	 r educed 	 by 	 5 	 per 	 tonne 	 of	
production due to water efficiency projects 
and improvements in plant utilisation
•	 	 w aste 	 r educed 	 by 	 4 	 per 	 tonne 	 of	
pr oduction 	 and 	 has 	 r educed 	 by 	 24	 
since 2008 following a combination of  
waste reduction projects production process 
changes at loudon usa and improvements  
in plant utilisation
most of our operations globally complied with 
their environmental operating permit limits during 
2010 on the rare occasions that a site temporarily 
exceeded its limits we took immediate action  
to correct the issue and prevent a recurrence  
we expect all our operations to meet operating 
permit limits at all times and treat any 
contraventions seriously
outlook
our newlyappointed vp sustainability will  
provide strategic leadership of our work to further 
improve environmental performance driving action 
plans that will build on our progress to date  
these 	 plans 	 include
•	 	 r educing 	 ener gy 	 and 	 water 	 usage 	 per 	 unit 	 of	
production and minimising process waste 
through a constant focus on efficient operation 
supported where appropriate by capital 
investment
•	 	 working 	 to 	 eliminate 	 any 	 incidence 	 of	 
noncompliance with environmental permits
•	 	 continuing 	 to 	 evaluate 	 our 	 carbon 	 footprint 	 and
•	 	 impr oving 	 engagement 	 with 	 colleagues 	 and	
external stakeholders on our environmental 
performance and other sustainability matters 2008 2009 2010
041
037
041
primary carbon footprint
tonnes co 2 per tonne production
2008 2009 2010
494
448
499
energy use
gj per tonne production
2008 2009 2010
465
443
468
water use
cubic meters per tonne production
2008 2009 2010
757
723
957
waste
tonnes per ‘000 tonnes production
30   tate  lyle annual report 2011
business review corporate responsibility
environmental performance
the environmental data for the calendar years 2008 2009 and 2010 presented in this annual report 2011 is not directly comparable to  
that provided in the company’s annual report 2010 and previous reports due to changes to the company’s structure and developments  
in the company’s environmental reporting arrangements specifically these differences are as follows 
1  discontinued operations have been removed for 2008 2009 and 2010
2  inclusion of data from some additional joint ventures
3  movement to normalised absolute reporting ie performance per tonne of production volume education
40
arts
10
health
24
environment
26
shareholder information
business review governance financial statements
tate  lyle annual report 2011   31
community
we want to play a positive role in the  
communities in which we operate our policy  
is to build longterm relationships with local 
partners who directly address local needs and 
who share our aims in establishing strong safe and 
healthy communities we chiefly do this through 
charitable donations and by supporting our 
employees’ participation in community activities 
overview of the year
in the past our sugars division played a key role  
in our overall community programme the disposal 
of the group’s eu sugar refining operations on 
30 september 2010 had no immediate impact 
on the recipients of the division’s community 
activities as these activities were transferred 
with the business however there was an 
impact on the structure and focus of the group’s 
overall community programme we are therefore 
undertaking a comprehensive review of the group’s 
community programme and will report on the 
results of this review in the annual report 2012
charitable donations
our corporate donations committee oversees 
community policy throughout the world it 
selects projects that target local needs and 
deliver the most positive impact and ensures 
that our community work reflects our broader 
responsibilities as a company our guidelines  
for	 funding	 and	 support	 ar e
•	 	 education 	 – 	 50
•	 	 envir onment 	 – 	 25
•	 	 health 	 – 	 15
•	 	 arts 	 – 	 10
in the financial year to 31 march 2011  
tate  lyle’s total worldwide charitable donations 
were £346000 2010 – £714000 this decrease 
is largely due to the sale of the group’s eu sugar 
refining operations
actual community spend by allocation
we support many initiatives and organisations 
involved in community regeneration all round the 
world 	 including
europe
•	 	 hungrana hungary our joint venture 
business supported a local primary school by 
donating equipment and holding safety and 
environmental events
•	 	 amylum bulgaria our joint venture business 
supports local schools and runs other  
smallscale initiatives
•	 	 t ate 	  	 l yle 	 the 	 netherlands we sponsor 
a windmill an institute for visually impaired 
people and a holiday programme for disabled 
children we also hold careers historical and 
technical open days for the local community
•	 	 amylum nisasta turkey every year our joint 
venture business supports the tema soiltree 
foundation with a local treeplanting day 
usa
•	 	 lafayette our two plants support the united 
way of lafayette regeneration organisation
•	 	 decatur we support agricultural shows local 
organisations responsible for arts grants 
and a range of education community and 
regeneration projects we also support the 
associated colleges of illinois
•	 	 loudon our plant supports the united way  
of loudon regeneration organisation
asia
•	 	 w e 	 made 	 a 	 oneof f 	 donation 	 for 	 the 	 victims	 
of the japanese earthquake and tsunami
outlook
following the sale of the group’s eu sugar 
refining operations we will undertake a 
comprehensive review of the nature purpose and 
scope of our community programme everywhere 
we operate we will assess policies the nature of 
pro bono and cash contributions and the selection 
of charities we support results will be included  
in our annual report 2012 32   tate  lyle annual report 2011
governance board of directors
sir peter gershon
chairman
became chairman in july 2009  
after joining the board in february  
2009 formerly chief executive of  
the office of government commerce 
managing director of marconi  
electronic systems and a member  
of the gec plc board currently 
chairman of premier farnell plc ghg 
limited general healthcare group 
and vertex data science limited and 
a member of the uk government’s 
efficiency board and the advisory 
board of the uk defence academy  
aged 64
javed ahmed
chief executive
joined the group as chief executive  
in october 2009 from reckitt  
benckiser plc started his career  
with procter  gamble and then spent 
five years with bain  co joined 
benckiser later reckitt benckiser plc  
in 1992 subsequently held a number  
of senior positions both in the uk  
and internationally including senior 
vice president northern europe 
president north america executive 
vice president north america  
australia and new zealand and 
executive vice president europe  
aged 51 
tim	lodge 
chief financial officer
joined the group in 1988 and  
joined the board in december 2008 
as group finance director has held 
a number of senior operational and 
financial roles both in the uk and 
internationally including managing 
director of zambia sugar group 
financial controller finance director 
of the food  industrial ingredients 
europe division and director  
of investor relations he is a  
fellow of the chartered institute of 
management accountants in june 
2010 his title was changed to 
chief financial officer  
aged 46
liz	air ey
nonexecutive director
joined the board in january 2007 
formerly finance director of  
monument oil and gas plc currently 
chairman of the jp morgan european 
smaller companies trust plc and 
the unilever uk pension fund senior 
independent director of jupiter fund 
management plc and a nonexecutive 
director of dunedin enterprise 
investment trust plc  
aged 52
william camp
nonexecutive director
joined the board in may 2010  
worked for 22 years for archer  
daniels midland company before 
retiring in 2007 and held a variety 
of management positions including 
executive vice president asia strategy 
executive vice president processing 
and senior vice president global  
oil seeds cocoa and wheat milling 
based in the usa and currently serves 
on the boards of chiquita brands 
international inc grain storage inc  
and oasis foods company  
aged 62
 
evert henkes
nonexecutive director
joined the board in december 2003 
worked for shell for 30 years before 
retiring in 2003 and held a number of 
senior management positions in europe 
and asia pacific culminating in chief 
executive of shell chemicals in 1998 
currently a nonexecutive director 
of outokumpu oyj air products 
and chemicals inc and sembcorp 
industries ltd  
aged 67 shareholder information
business review governance financial statements
tate  lyle annual report 2011   33
robert	gibber 
executive vice president 
company secretary  
and general counsel
a solicitor robert joined tate  lyle  
in 1990 as a commercial lawyer 
previously worked for city law firms 
wilde sapte and herbert oppenheimer 
graduated from wadham college 
oxford in oriental studies chinese in 
1984 appointed general counsel in 
1997 and company secretary in 2001 
aged 48
nominations 
committee
sir peter gershon chairman
javed ahmed 
liz airey
william camp
evert henkes
douglas hurt
robert walker 
dr barry zoumas
corporate 	 responsibility 
committee
sir peter gershon chairman
liz airey
william camp
dr barry zoumas
douglas hurt 
nonexecutive director
joined the board in march 2010  
a chartered accountant he is  
currently finance director of imi plc 
before joining imi plc in 2006 he  
held a number of financial and 
operational roles including us  
and european senior management 
positions at glaxosmithkline  
aged 54
robert	w alker 
senior independent director
joined the board in january 2006 
he spent over 30 years with procter 
 gamble mckinsey and finally 
pepsico where he was responsible  
for the company’s beverage operations 
in europe the middle east and 
africa he is currently chairman of 
travis perkins plc and americana 
international holdings limited he 
has also served on a number of ftse 
100250 boards including wh smith 
chairman wolseley severn trent 
baa signet and thomson travel 
aged 66
dr barry zoumas 
nonexecutive director
joined the board in may 2005  
worked for hershey foods corporation 
for 27 years before retiring in 1997 and  
held a number of positions culminating 
as corporate vice president of science 
and technology based in the usa 
and currently the alan r warehime 
professor of agribusiness and professor 
of food science and nutrition at penn 
state university usa and also global 
chairman of the international life 
sciences institute  
aged 68 
committee membership  
as at 26 may 2011
audit committee
liz airey chairman 
evert henkes
douglas hurt
remuneration 	 committee
evert henkes chairman 
william camp
sir peter gershon
robert walker 34   tate  lyle annual report 2011
governance executive management
the group executive committee oversees the development  
and execution of the group’s strategy and has overall responsibility  
for achieving business results 
olivier	rigaud
president speciality food ingredients 
joined tate  lyle amylum business in  
1988 as a sales manager in france a chemistry 
graduate from aixmarseille university he has 
held various management positions within 
tate  lyle including in industrial products liquid 
sweeteners and alcohol sales in 2000 olivier 
became vice president food ingredients europe 
and was appointed president food  industrial 
ingredients europe in 2008 he was appointed 
president speciality food ingredients in  
june 2010
matt wineinger
president bulk ingredients 
joined tate  lyle in march 2008 became 
president food  industrial ingredients 
americas in july 2008 and was appointed 
president bulk ingredients in june 2010 a 
graduate of kansas state university matt started 
his career in the food products division at 
procter  gamble and then worked in a variety 
of roles for monsanto and later cargill where 
he became president of sales marketing and 
research  development in 2002 for its meat 
solutions platform subsequently joined swift 
and co where he was president of its australian 
meat holdings division until 2007
the biographies for javed ahmed tim lodge  
and robert gibber are on pages 32 and 33
karl kramer
president innovation and  
commercial development 
joined tate  lyle in april 2008 became 
president sucralose in june 2008 and was 
appointed president innovation and commercial 
development in june 2010 a graduate of  
chemical engineering from the new jersey 
institute of technology karl also holds an mba 
from the new york university stern school of 
business began his career in rd at general 
foods and then worked in brand management 
for nestlé and in international sales for the 
nutrasweet kelco division of monsanto  
before joining tate  lyle karl held various 
international general management roles in  
the flavour division of givaudan
rob	luijten
executive vice president human resources
joined tate  lyle in february 2010 and was 
appointed executive vice president human 
resources in june 2010 holds a masters 
degree in human resource studies from tilburg 
university and began his career with inamed 
corporation before spending ten years with 
ge plastics where he held a number of senior 
human resources roles in both europe and asia 
including five years based in shanghai as human 
resources director asia pacific subsequently 
joined bg group plc where he was human 
resources director africa middle east  
and asia until 2009
javed ahmed 
chief executive
olivier 	 rigaud
president 
speciality food 
ingredients
matt wineinger 
president  
bulk ingredients
karl kramer 
president 
innovation and 
commercial 
development
tim 	 lodge
chief financial 
officer
rob 	 luijten
executive vice 
president  
human resources
robert 	 gibber	
executive vice 
president 
company 
secretary and 
general counsel shareholder information
business review governance financial statements
tate  lyle annual report 2011   35
governance corporate governance
as chairman i am responsible for ensuring  
that the board operates effectively during  
the year we undertook a number of actions to 
enhance further the governance structure and 
thereby improve the board’s effectiveness  
these 	 included
establishment of a corporate  
responsibility 	 committee
in light of the output from the 2010 board 
effectiveness review the board established a 
corporate responsibility cr committee with 
effect from 1 july 2010 the cr committee is 
responsible for reviewing and monitoring the 
processes and measures used to manage social 
environmental and ethical risks during the year 
this new committee reviewed a number of issues 
including the group’s safety performance product 
quality processes environmental performance  
and diversity and inclusion initiatives further  
detail is provided on page 42
use 	 of 	 nonexecutive 	 dir ectors’ 	 time	
we also undertook a comprehensive review of  
the board and committees’ programmes and use 
of nonexecutive directors’ time in the past all  
nonexecutive directors generally served on 
each board committee following the review the 
directors agreed that all nonexecutive directors 
would serve on the nominations committee 
and at least one other committee details of the 
current committee memberships are on page 33 
in addition we restructured the board agenda 
to facilitate greater discussion and reduced the 
number of scheduled board meetings from eight  
to six per annum although we recognised that as  
a result the scheduled meetings would have to  
be longer and that we would need to meet on an  
ad hoc basis more frequently than in the past 
we also established an annual programme of 
independent site visits whereby each nonexecutive 
director undertakes at least one ‘solo’ site visit a 
year in addition to the group board visit this will 
increase both board visibility across the group and 
also the nonexecutive directors’ understanding 
of our operations between us the nonexecutive 
directors and i have visited a total of 12 sites  
during the year
board effectiveness review
in light of the significant changes to the board  
and group over the previous 18 months and  
the length of time that had elapsed since the last 
external board effectiveness review conducted 
in 2008 the board agreed that the 2011 review 
should be externally facilitated details of this 
review are on page 38
developments in corporate governance
we continued to monitor the changes to the 
corporate governance landscape following the 
publication of the new uk corporate governance 
code which applies to tate  lyle from 1 april 
2011 all directors will be standing for reelection 
at the forthcoming agm we also reviewed and 
updated the schedule outlining the role and 
responsibilities of the chairman chief executive 
and senior independent director during the year  
to bring it into line with evolving best practice
looking ahead we will continue to develop  
our processes procedures and systems as  
both tate  lyle and our wider governance 
environment evolve
sir peter gershon 
chairman
26 may 2011
statement from the chairman
 with the ongoing evolution of best practice in uk corporate 
governance the board continues to work hard to ensure it keeps up to 
date with these changes we value our reputation as a wellrun company 
and will continue to commit significant effort to maintaining it  36   tate  lyle annual report 2011
other responsibilities are delegated to board 
committees details of which are given on pages 
40 to 44 the directors’ responsibilities for the 
preparation of financial statements are explained 
in the directors’ statement of responsibilities on 
page 59 and their statement on going concern  
on page 25
board balance and independence
at the date of this report the board comprises 
nine 	 dir ectors 	 the 	 chairman 	 who 	 has 	 no	
executive responsibilities two executive 
directors and six nonexecutive directors  
the names and biographies of the directors  
are on pages 32 to 33
richard delbridge ceased to be a director on 
22 july 2010 and robert walker succeeded  
him as senior independent director on the  
same day william camp was appointed  
a nonexecutive director with effect from  
1 may 2010
with the exception of the chairman  
who is presumed under the code not to be 
independent the board considers all the non
executive directors to be independent the  
senior independent director robert walker  
is available to shareholders if they have any 
issues or concerns and leads the annual  
review of the chairman’s performance 
the nonexecutive directors have a wide  
range of skills and knowledge and combine 
broad business and commercial experience  
with independent and objective judgement  
the terms and conditions of appointment of  
the nonexecutive directors can be inspected  
at the company’s registered office and will  
be available for inspection at the annual  
general meeting agm
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 while the chief 
executive is responsible for running the business 
and implementing strategy and policy
the other significant commitments of the 
chairman sir peter gershon are set out on page 
32 the board is satisfied that they do not restrict 
him from effectively carrying out his duties  
as chairman
board meetings
a total of 13 board meetings were held during 
the year ended 31 march 2011 one of the six 
scheduled board meetings was held at the 
group’s offices in lafayette indiana usa the 
seven ad hoc meetings were required to consider 
the development and implementation of the 
group’s strategy and business disposals 
compliance with the combined code
throughout the period 1 april 2010 to 31 march 
2011 the company has been in full compliance 
with the june 2008 issue of the combined code 
on corporate governance the code published 
by the financial reporting council and available 
on its website wwwfrcorguk 
this report together with the directors’ 
remuneration report and the disclosures contained 
in the risk management section on pages 19 to 21 
provide details of how the company applies the 
principles and complies with the 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 
objectives ensures that the company has the 
necessary financial resources and people to meet 
them and reviews management performance 
the board also sets the company’s values and 
standards and ensures that its obligations to 
shareholders and others are met
governance corporate governance
matters reserved to the board
the schedule of matters reserved to the  
boar d 	 for 	 decision 	 includes 	 appr oval 	 of
•	 	 gr oup 	 strategy	
•	 	 annual 	 budget 	 and 	 operating 	 plans	
•	 	 major 	 capital 	 expenditur e 	 acquisitions	 
or divestments 
•	 	 dividends
•	 	 fullyear 	 and 	 halfyear 	 r esults 	 and 	 interim	
management statements 
•	 	 boar d 	 and 	 company 	 secr etary	
appointments 
•	 	 senior 	 management 	 structur e 	 and	
responsibilities
•	 	 tr easury 	 policies	
•	 	 dir ectors’ 	 conflicts 	 of 	 inter est 	 and
•	 	 systems 	 of 	 inter nal 	 contr ol 	 and 	 risk	
management strategy
34
governance
18
operations
12
financerisk
33
capital expenditure 
and investment
3
shareholder information
business review governance financial statements
tate  lyle annual report 2011   37
directors’ attendance at board meetings
 
number of 
meetings 
number of 
meetings 
attended
directors as at 31 march 2011
sir peter gershon 13 13
javed ahmed 13 13
tim lodge 13 12
liz airey 13 13
william camp
1
11 11
evert henkes 13 10
douglas hurt
2
13
robert walker 13 13
dr barry zoumas 13 13
former directors
richard delbridge
3
7 6
 
1 appointed 1 may 2010
2  douglas hurt is finance director at imi plc prior to his 
appointment to the tate  lyle board on 10 march 2010 he 
indicated that he would be unable to attend a total of four 
scheduled meetings due to preexisting commitments  
douglas hurt submitted detailed comments and questions  
to the chairman prior to each meeting that he was unable  
to attend to ensure his views and comments could be 
communicated in his absence
3   retired 22 july 2010
where a director is unable to attend a meeting his 
or her comments on the briefing papers are given 
in advance to the relevant chairman 
the rolling programme of items for discussion by 
the board was fully reviewed and revised during 
the year in light of changes to the board schedule 
and committee structure meetings have been 
restructured to facilitate further open discussion 
and all directors participate in discussing strategy 
trading safety financial performance and risk 
management
all substantive agenda items have comprehensive 
briefing papers circulated five working days  
before the meeting members of executive 
management attend board meetings and make 
presentations regularly 
during the year the chairman continued to hold a 
short discussion with the nonexecutive directors 
collectively both immediately before and after each 
scheduled board meeting
board allocation of time
the chart below shows the approximate time the 
board has spent discussing agenda items during 
the year separated into broad categories
board support
all directors have access to the advice and services 
of the company secretary robert gibber who is 
also the general counsel and a member of the group 
executive committee the company secretary and 
the deputy company secretary are responsible for 
ensuring that board processes are followed and 
that applicable rules and regulations are complied 
with the appointment and removal of the company 
secretary is a matter for the board as a whole 
there is also a formal procedure whereby in the 
furtherance of their duties directors can obtain 
independent professional advice if necessary  
at the company’s expense 
directors’ conflicts of interest
as permitted under the companies act 2006 the 
company’s articles of association allow directors 
to authorise conflicts of interest and the board has 
a policy and procedures for managing and where 
appropriate authorising actual or potential conflicts 
of interest under those procedures directors 
are required to declare all directorships or other 
appointments to organisations that are not part of the 
group and which could result in actual or potential 
conflicts of interest as well as other situations which 
could result in a potential conflict of interest 
the board is required to review directors’ actual 
or potential conflicts of interest at least annually 
directors are required to disclose proposed new 
appointments to the chairman before taking them 
on to ensure that any potential conflicts of interest 
can be identified and addressed appropriately  
any potential conflicts of interest in relation to 
proposed directors are considered by the board  
prior to their appointment
information induction and professional 
development
the chairman assisted by 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 new directors receive 
background reading about the group and details 
of board procedures and other governance related 
matters in addition the directors participate in a 
comprehensive induction programme including  
site visits to the group’s operations in europe and  
the usa and meetings with senior management 
across the group
directors receive ongoing training and updates on 
relevant issues as appropriate taking into account 
their individual qualifications and experience a 
number of training sessions were held during the 
year these included a session on the uk bribery 
act provided jointly by the group’s internal and 
external lawyers and one on food technology which 
was provided by members of the faculty at purdue 
university lafayette indiana usa 
the company secretary helps directors undertake 
any other professional development they consider 
necessary to assist them in carrying out their duties 
visits to external events or organisations are also 
arranged for the board to help nonexecutive 
directors in particular to gain a deeper insight  
into the group’s operating environment
9 38   tate  lyle annual report 2011
the board effectiveness review also included a 
review of the audit nominations and remuneration 
committees and each committee undertook an 
evaluation of its own work and effectiveness during 
the year the results of the reviews were discussed 
by the board which concluded that each committee 
operated effectively throughout the year the cr 
committee will be subject to an effectiveness review 
in the 2012 financial year after its first full year  
of operation
during the year the nonexecutive directors met 
without the chairman 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
shareholder communications
the chief executive chief financial officer and 
vp – investor and media relations maintain a 
regular programme of visits and presentations 
to major institutional shareholders both in the 
uk and overseas the chairman and senior 
independent director participate in this programme 
as appropriate and the chairman provides feedback 
to the board on any matters raised with him by 
major shareholders the chairman also undertook 
separate visits to major institutional shareholders 
during the year
the investor relations department provides the 
board with a report on any meetings with major 
institutional shareholders at each scheduled board 
meeting all directors receive copies of analysts’ 
reports on the company and the board is briefed 
periodically by the company’s financial advisers on 
investors’ perceptions of tate  lyle and its investor 
relations activities the nonexecutive directors are 
encouraged to attend the fullyear and halfyear 
results presentations
the company aims to present a balanced and clear 
assessment in all its public reports as well as in 
those to regulators key announcements financial 
reports and other information about the group  
can be found on the company’s website at  
wwwtateandlylecom
annual general meeting agm
the 2011 agm will be held at the queen elizabeth ii 
conference centre in london on thursday 28 july 
2011 at 1100 am full details are set out in the 
notice of meeting
shareholders who attend the agm have the 
opportunity to put questions to the board on 
matters relating to the group’s operations and 
performance all resolutions are decided by means 
of a poll and the votes received in respect of each 
resolution together with the level of abstentions 
are notified to the london stock exchange and 
published on the company’s website shareholders 
are offered the choice of receiving shareholder 
documentation including the annual report 
electronically or in paper format as well as the 
choice of submitting proxy votes either  
electronically or by post
performance evaluation
a review of the board’s effectiveness is  
undertaken each year the main outcomes of the 
2010 evaluation which was led by the chairman 
ar e 	 summarised 	 below
recommendation action
more specialist 
presentations and 
training sessions to be 
included in the board 
agenda
the directors received  
detailed presentations during  
the year and also training  
on areas including food 
technology and the uk  
bribery act
more opportunity to 
interact with a broader 
range of employees
a programme of independent 
site visits was implemented 
during the year which enables 
the directors to meet more 
employees around the group
a corporate 
responsibility 
committee should be 
established 
the cr committee was 
established on 1 july 2010 
and met for the first time in 
september 2010 details on 
the committee are on page 42
the board agreed that the 2011 board 
effectiveness review be externally facilitated 
as part of the process sheena crane a board 
specialist consultant held onetoone meetings 
with each director the company secretary and 
deputy company secretary the main themes of 
and observations on the board’s effectiveness 
were summarised in a report to the board it 
concluded that the board continued to operate 
in an effective manner but made a number of 
recommendations for improvements including 
those recommendations summarised below 
progress on agreed actions is being monitored  
by the company secretary and will be reported  
in the annual report 2012
recommendation action
in light of the changes to 
the company’s strategic 
focus future board 
composition should be 
subject to a detailed 
review during 2011 
the review is underway and  
the output from that review  
will be reported in the annual  
report 2012
a board diversity 
strategy should be 
developed
the chairman is leading the 
project to develop the board 
diversity strategy during 2011
personal development 
plans should be 
developed for each of the 
nonexecutive directors 
and the chairman
personal development plans  
are being established 
 
 
it would be useful for the 
board to have a series 
of ‘deep dive’ sessions 
every year
deep dive topics are  
being identified and will  
be included in the  
board agenda 
with regard to the performance of individual 
directors the review concluded that all directors 
continue to make an effective contribution to the 
board’s work are well prepared and informed 
about issues they need to consider and that their 
commitment remains strong individual feedback 
was also provided to each director 
governance corporate governance shareholder information
business review governance financial statements
tate  lyle annual report 2011   39
•	 	 r easonable 	 assurance 	 that 	 transactions 	 ar e	
recorded as necessary to permit the preparation 
of financial statements in accordance with 
international financial reporting standards
•	 	 assurance 	 that 	 r epr esentatives 	 of 	 the	
businesses have certified that their reported 
information provides a true and fair view of the 
state of the financial affairs of the business and 
its results for the period and
•	 	 that 	 r eported 	 data 	 has 	 been 	 r eviewed 	 and	
reconciled
monitoring effectiveness
the board receives reports from the chief 
executive chief financial officer business  
division presidents and other senior executives 
to enable it to assess on an ongoing basis the 
effectiveness of the systems of internal control 
and risk management the audit committee 
periodically reviews the effectiveness of the system 
of internal control through reports from 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  
it has the authority to review any relevant aspect  
of the business and a duty to report on any  
material weaknesses
2011 review of effectiveness
the board with the assistance of the audit 
committee and corporate responsibility 
committee conducted an 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  
coordinated by the internal audit function 
included a groupwide certification that 
appropriate internal controls were in place to 
facilitate the board’s review of effectiveness 
the internal audit function monitored and 
selectively checked the results of this exercise 
ensuring that the representations made were 
consistent with the results of its work during the 
year where weaknesses have been identified 
remedial action plans were also reported the 
results of this exercise were summarised for 
the audit committee corporate responsibility 
committee and the board
this assessment is carried out every year in 
the event that any significant losses were to be 
incurred during any particular year as a result of 
a failure of controls a detailed analysis would 
be provided to the audit committee corporate 
responsibility committee if appropriate  
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  
action is required
further information on risk is on pages 19 to 21
internal control
the board has overall responsibility for the  
group’s system of internal control which is 
designed to safeguard the assets of the group  
and to ensure the reliability of financial information 
for both internal use and external publication and 
to comply with the turnbull committee guidance 
the schedule of matters reserved to the board 
ensures that the directors control among other 
matters all significant strategic financial and 
organisational issues
responsibilities
the board delegates to executive management 
the responsibility for designing operating and 
monitoring both the system and the maintenance 
of effective internal control procedures are in 
place for identifying evaluating and managing 
any significant risks that face the group these 
procedures are designed to manage rather than 
eliminate risk and can provide only reasonable and 
not absolute assurance against material errors 
losses fraud or breaches of laws or regulations 
mandatory written policies and procedural 
manuals exist for all businesses compliance with 
which is reviewed by the board annually these 
internal control procedures provide that all major 
projects require technical financial and board 
approval while all capital expenditure within each 
project requires senior management approval at 
appropriate stages adherence to internal control 
procedures is ensured by a regular reporting 
system that details both technical progress of 
projects and the group’s financial affairs all 
material joint ventures follow the group’s formal 
systems of internal control and their internal 
control procedures are regularly reviewed by  
the group’s internal audit function 
risk assessment and evaluation form an integral 
part of the annual planning process each business 
division documents its strategic objectives and the 
significant risks in achieving them the divisions 
report regularly on progress towards fulfilment 
whilst the key risks are reviewed regularly by 
the board there is a comprehensive budgeting 
and planning system for all items of expenditure 
with an annual budget approved by the board 
results are reported against budget on a monthly 
basis with significant variances investigated and 
the chief executive and chief financial officer 
undertake regular financial and operational reviews 
of the business divisions revised forecasts for the 
financial year and financial projections for future 
years are prepared on a regular basis
financial reporting
the company has in place internal control  
and risk management systems in relation to the 
company’s financial reporting process and the 
group’s process for preparation of consolidated 
accounts they include policies and procedures 
which 	 pr ovide
•	 	 that 	 transactions 	 and 	 disposals 	 of 	 assets	 
are accurately and fairly reflected 40   tate  lyle annual report 2011
independence of the external auditors
the group’s external auditors are 
pricewaterhousecoopers llp pwc and 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 non
audit related services provided by the external 
auditors during the year the committee reviewed 
the processes that the external auditors have 
in place to safeguard their independence and 
received a letter from them confirming that in  
their opinion they remained independent
the committee closely monitors the level of audit 
and nonaudit related services they provide to the 
group nonaudit related services are normally 
limited to assignments that are closely related to 
the annual audit or where the work is of such a 
nature that a detailed understanding of the group 
is necessary a policy for the engagement of the 
external auditors to supply nonaudit related 
services has been implemented to formalise these 
arrangements which requires audit committee 
approval for certain categories of work and 
fee levels a breakdown of the fees paid to the 
external auditors in respect of audit and nonaudit 
related work is included in note 8 of the financial 
statements having undertaken a review of the 
nonaudit related services provided during the  
year the committee is satisfied that these  
services did not prejudice the external  
auditors’ independence 
audit committee
the audit committee currently comprises three 
nonexecutive directors and oversees the group’s 
financial reporting and internal controls and 
provides a formal reporting link with the external 
auditors its terms of reference which are reviewed 
annually by the board are available on the 
company’s website wwwtateandlylecom
the committee met six times during the year 
membership of the committee and attendance 
during 	 the 	 year 	 wer e 	 as 	 follows
 
number of 
meetings 
number of 
meetings 
attended
directors as at 31 march 2011
liz airey chairman of  
  the committee
 
6
 
6
evert henkes 6 5
douglas hurt 6 5
former members
richard delbridge
1
3 3
robert walker
2
2 2
dr barry zoumas
2
2 2
 
1 retired 22 july 2010
2 until 30 june 2010
all the committee members have extensive 
management experience in large international 
organisations it is a requirement of the code 
that at least one committee member has recent 
and relevant financial experience liz airey an 
investment banker and former finance director  
of monument oil and gas plc and douglas  
hurt finance director at imi plc both meet  
this requirement 
the chief financial officer vp – group audit 
and assurance vp – group financial controller 
and representatives of the external auditors are 
normally invited to attend each meeting of the 
committee the chairman of the board and chief 
executive also attend meetings of the committee 
by invitation 
the minutes of each meeting are circulated to 
the board the vp – group audit and assurance 
and the external auditors have direct access to 
and meet regularly with the chairman of the 
committee outside formal committee meetings
the committee maintains a formal calendar of 
items for consideration at each meeting and within 
the annual audit cycle to ensure that its work is in 
line with the requirements of the code
main responsibilities of the  
audit committee
the main responsibilities of the  
committee 	 include
•	 	 overseeing 	 the 	 gr oup’ s 	 financial 	 r eporting	
process and monitoring the integrity 
of the financial statements and formal 
announcements relating to the group’s 
financial performance 
•	 	 r eviewing 	 significant 	 financial 	 r eporting	
issues and accounting policies and 
disclosures in financial reports 
•	 	 r eviewing 	 the 	 ef fectiveness 	 of 	 the 	 gr oup’ s	
internal control procedures and risk 
management systems 
•	 	 r eviewing 	 the 	 ef fectiveness 	 of 	 the 	 inter nal	
audit function 
•	 	 overseeing 	 the 	 boar d’ s 	 r elationship 	 with 	 the	
external auditors 
•	 	 r eviewing 	 and 	 monitoring 	 the 	 exter nal	
auditors’ independence and objectivity and  
the effectiveness of the audit process and
•	 	 making 	 r ecommendations 	 to 	 the 	 boar d 	 on	 
the appointment or reappointment of the 
group’s external auditors
governance corporate governance shareholder information
business review governance financial statements
tate  lyle annual report 2011   41
review of the effectiveness of the  
external auditors
•	 	 	 conducting 	 an 	 inter nal 	 r eview 	 of 	 the 	 exter nal	
auditors in the year which concluded that the 
external audit process was operating effectively 
and pwc continued to provide a good service 
to tate  lyle the committee agreed that  
there was no need to undertake a tender  
for the audit
•	 	 r eviewing 	 the 	 fees 	 paid 	 to 	 other 	 audit 	 firms 	
for services during the year ended 31 march 
2011 and noting that there were no contractual 
obligations that would restrict the committee’s 
choice of external auditors should it decide that 
any change was appropriate and
•	 	 r ecommending 	 to 	 the 	 boar d 	 that 	 pwc 	 continue	
to act as auditors to the group pwc have 
indicated their willingness to continue in office 
and a resolution that they be reappointed will 
be proposed at the agm
review of the effectiveness of the internal  
audit function
•	 	 undertaking 	 a 	 r eview 	 of 	 the 	 ef fectiveness 	 of 	 the	
internal audit function the review concluded 
that the internal audit function continued 
to strengthen and was making a significant 
contribution to the internal governance of the 
group further development will be necessary 
to ensure that the internal audit function 
continues to meet the group’s needs which will 
evolve with the implementation of the group’s 
strategy in addition some opportunities 
to improve processes and practices were 
identified and are being implemented
work undertaken during the year
during the year and up to the date of this 
annual report the work undertaken by the audit 
committee 	 included
consideration and review of fullyear and 
halfyear results and interim management 
statements
•	 	 meeting 	 prior 	 to 	 the 	 boar d 	 meetings 	 at 	 which	
the annual report and financial statements 
the halfyear report and interim management 
statements were approved to review significant 
accounting policies financial reporting issues 
and judgements and reports from the  
external auditors
external audit
•	 	 r eviewing 	 the 	 ef fectiveness 	 of 	 the 	 exter nal 	 audit	
process the external auditors’ strategy and 
plan for the halfyear review and fullyear audit 
and the qualifications expertise resources and 
independence of the external auditors 
•	 	 agr eeing 	 the 	 terms 	 of 	 engagement 	 and 	 fees	 
of the external auditors for the audit 
•	 	 r eviewing 	 the 	 policy 	 on 	 auditor 	 independence	
and the basis of the provision of nonaudit 
related services by the external auditors 
•	 	 meeting 	 with 	 r epr esentatives 	 of 	 the 	 exter nal	
auditors in the usa while on a scheduled site 
visit and
•	 	 undertaking 	 a 	 r eview 	 of 	 the 	 ef fectiveness 	 of	 
the external auditors
risk management framework and  
internal audit
•	 	 	 r eceiving 	 and 	 considering 	 r egular 	 r eports 	 fr om	
the vp – group audit and assurance on the 
group’s risk management system findings from 
reviews of internal financial controls and the 
remit organisation annual plan and resources 
of the internal audit function 
•	 	 r eviewing 	 the 	 str ength 	 of 	 the 	 inter nal 	 contr ols	
framework and considering the annual review  
of internal controls on behalf of the board and
•	 	 undertaking 	 a 	 detailed 	 r eview 	 of 	 the 	 gover nance	
and controls in place within the business 
processes transformation programme
terms of reference and audit  
committee effectiveness
•	 	 updating 	 its 	 terms 	 of 	 r efer ence 	 to 	 r eflect 	
evolving best practice and the implications 
of the new committee structure whereby 
responsibility for certain items including the 
whistleblowing process are passed to the  
cr committee the board approved the 
updated terms of reference and
•	 	 undertaking 	 an 	 ef fectiveness 	 r eview 	 which	
concluded that the committee was considered 
to be operating effectively 42   tate  lyle annual report 2011
work undertaken during the year
during the year and up to the date of this annual 
report the work undertaken by the cr committee 
included
safety
•	 	 r eviewing 	 the 	 output 	 of 	 the 	 exter nal 	 r eview	
of the group’s safety performance and the 
resultant action plan and monitoring its 
implementation
product safety
•	 	 undertaking 	 a 	 r eview 	 of 	 the 	 quality 	 assurance	
processes within the group
diversity and inclusion
•	 	 r eviewing 	 the 	 gr oup’ s 	 appr oach 	 to 	 diversity 	 and	
inclusion along with initiatives put in place by 
management
environment
•	 	 r eviewing 	 the 	 actions 	 being 	 undertaken 	 to	
improve the group’s performance further
the committee also undertook the annual 
review of internal controls in relation to the above 
areas further information on the work of the 
committee and the group’s approach to corporate 
responsibility reporting is contained in the 
corporate responsibility report on pages 26 to 31
nominations committee 
the nominations committee currently comprises 
the chairman of the company the chief executive 
and all of the nonexecutive directors its terms 
of reference which are reviewed annually by the 
board are available on the company’s website 
wwwtateandlylecom
the committee met four times during the 
year membership of the committee and their 
attendance 	 during 	 the 	 year 	 wer e 	 as 	 follows
 
number of 
meetings
number of 
meetings 
attended
directors as at 31 march 2011
sir peter gershon chairman of 
the committee
1

4 4
javed ahmed 4 4
liz airey 4 4
william camp
2
4 4
evert henkes 4 4
douglas hurt 4 2
robert walker 4 4
dr barry zoumas 4 4
former directors
richard delbridge
3
1 1
1  except when the committee is dealing with the appointment 
of a successor to the chairman when the senior independent 
director chairs the committee
2 appointed 1 may 2010
3 retired 22 july 2010
the committee has a formal calendar of items for 
consideration at each meeting and meets at least 
twice a year
corporate 	 responsibility	
committee 
the corporate responsibility cr committee  
was established with effect from 1 july 2010 
in light of the conclusions of the 2010 board 
effectiveness review a summary of which is on 
page 38 to provide greater oversight on key areas 
of corporate responsibility the cr committee 
currently comprises the chairman of the company 
and three nonexecutive directors its terms of 
reference are available on the company’s  
website wwwtateandlylecom
the committee met three times during the 
year membership of the committee and their 
attendance 	 during 	 the 	 year 	 wer e 	 as 	 follows
 
number of 
meetings
number of 
meetings 
attended
directors as at 31 march 2011
sir peter gershon chairman  
of the committee
 
3
 
3
liz airey 3 3
william camp 3 2
dr barry zoumas 3 3
the committee has established a formal calendar 
of items for consideration at each meeting and 
will meet at least four times each full year the 
minutes of each meeting are circulated to the 
board the chief executive executive vp – human 
resources vp – group audit and assurance and 
other members of the senior management team as 
invited by the committee usually attend meetings 
main responsibilities of the  
corporate 	 responsibility 	 committee
the main responsibilities of the  
committee 	 include
•	 	 monitoring 	 the 	 gr oup’ s 	 overall 	 appr oach 	 to	
corporate responsibility and ensuring it is  
in alignment with the group strategy
•	 	 appr oving 	 or 	 wher e 	 appr opriate	
recommending to the board for approval 
cr policies
•	 	 r eviewing 	 the 	 ef fectiveness 	 of 	 the	 
group’s policies and procedures relating  
to the provision of a safe environment
•	 	 r eviewing 	 the 	 implementation 	 of 	 appr opriate	
environmental policies
•	 	 monitoring 	 the 	 ef fectiveness 	 of 	 workplace	
policies concerning employee relations 
equal opportunities travel entertainment 
and conflicts of interest 
•	 	 r eviewing 	 the 	 arrangements 	 by 	 which	
employees may in confidence raise 
concerns about possible improprieties  
in matters of financial reporting  
financial control or other matters 
whistleblowing and
•	 	 satisfying 	 itself 	 that 	 the 	 gr oup 	 has	
appropriate policies systems and controls 
in place in respect of the risks falling within 
the committee’s remit
governance corporate governance shareholder information
business review governance financial statements
tate  lyle annual report 2011   43
remuneration 	 committee
the remuneration committee comprises 
independent nonexecutive directors and the 
chairman of the board its terms of reference 
which are reviewed annually by the board  
are available on the company’s website  
wwwtateandlylecom
the committee met six times during the 
year membership of the committee and their 
attendance 	 during 	 the 	 year 	 wer e 	 as 	 follows
 
number of 
meetings
number of 
meetings 
attended
directors as at 31 march 2011
evert henkes chairman of the 
committee
6 6
william camp
1
6 6
sir peter gershon 6 6
robert walker 6 6
former members
2
liz airey 1 1
richard delbridge 1 1
douglas hurt 1 1
dr barry zoumas 1 1
1 appointed 1 may 2010
2 until 30 june 2010
the committee meets as required usually before 
each board meeting and has a formal calendar 
of items for consideration the minutes of each 
meeting are circulated to those nonexecutive 
directors who are not members of the committee
the committee determines the remuneration 
packages of each executive director and the other 
members of the group executive committee 
these include base salary bonus longterm 
incentives benefits and terms of employment 
including those upon which their service may be 
terminated the committee also determines the 
base salary longterm incentives and benefits of 
certain other senior executives in consultation 
with the chief executive the committee excluding 
the chairman sir peter gershon determines the 
remuneration of the chairman the remuneration 
of nonexecutive directors is determined by the 
executive directors and the chairman more 
information on policy practice and the workings 
of the committee can be found in the directors’ 
remuneration report
work undertaken during the year
during the year and up to the date of this annual 
report the work undertaken by the nominations 
committee 	 included
board composition
•	 	 r eviewing	the	successional	needs	of	the	
board on a regular basis during the year 
no additional nonexecutive directors were 
recruited during the year william camp 
who joined the board on 1 may 2010 was 
recruited during the financial year ended 
31 march 2010 and details of the recruitment 
process were disclosed in the annual  
report 2010
committee membership
•	 	 r eviewing	the	membership	of	all	boar d	
committees following the board’s decision 
to establish a corporate responsibility 
committee its recommendations regarding 
committee composition were approved by 
the board
performance evaluation
•	 	 undertaking	a	performance	evaluation	of	
each of the members of the group executive 
committee and reporting its conclusions to 
the remuneration committee
terms of reference and nominations 
committee effectiveness
•	 	 updating	its	terms	of	r efer ence	to	r eflect	
evolving best practice the board approved 
the revised terms of reference and 
•	 	 undertaking	a	r eview	of	ef fectiveness	
which concluded that the committee was 
considered to be operating effectively while 
identifying a number of areas for focus 
including the development of a strategy on 
board diversity for approval by the board in 
the first half of the 2012 financial year
main responsibilities of the  
nominations committee
the main responsibilities of the  
committee 	 include
•	 	 r eviewing 	 the 	 size 	 and 	 composition 	 of 	 the	
board including succession planning and  
the leadership needs of the group generally 
•	 	 r ecommending 	 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 
bearing in mind the need for diversity 
•	 	 making 	 r ecommendations 	 on 	 the 	 pr ocesses	 
for the appointment of the chairman of the 
board and
•	 	 r eviewing 	 annually 	 the 	 performance 	 of 	 each	
member of the group executive committee  
and reporting on that review to the 
remuneration committee 44   tate  lyle annual report 2011
the committee reviews its work and effectiveness 
each year and reports any recommendations to 
the board the 2011 review concluded that the 
committee had fulfilled its role and responsibilities  
appropriately
consultants
the committee receives advice from independent 
remuneration consultants during the year the 
committee carried out a comprehensive triennial 
review of potential external advisors and as a result 
reappointed hewitt new bridge street hnbs  
part of hewitt associates ltd to act as principal 
adviser to the committee hnbs is a signatory to 
the remuneration consultant’s voluntary code  
of conduct 
in addition to market remuneration data provided 
by hnbs and by towers watson the committee 
receives total shareholder return performance  
data and ranking information for the performance 
share plan and the legacy deferred bonus 
share plan and general market data from kepler 
associates linklaters provides general legal advice 
on remuneration matters towers watson assists  
with pension accounting for the company and  
acts as actuaries to the ukbased tate  lyle  
group pension scheme during the year ended 
31 march 2011 hnbs towers watson and kepler 
associates provided no other services to the group 
linklaters gave legal advice to the group on a  
range of matters
review 	 of 	 executive 	 r emuneration
during the year ended 31 march 2010 the 
committee undertook a comprehensive review of 
executive remuneration and consulted extensively 
with major shareholders on the proposals developed 
during this review the revised remuneration policy 
was detailed in the directors’ remuneration report 
for the year ended 31 march 2010 both that 
directors’ remuneration report and a resolution to 
change the award limits under the performance 
share plan were approved by shareholders at the 
2010 agm the changes to remuneration policy are 
aligned to the company’s business strategy placing 
more emphasis on driving company performance 
and growth and delivering value for shareholders 
the changes were implemented for the year ended 
31 march 2011 the remuneration detailed in this 
report therefore reflects the new policy as the chief 
executive’s remuneration had only recently been 
agreed on his recruitment in october 2009 some 
aspects of the new policy were not applied to him 
during the year ended 31 march 2011 details of 
which are explained in this report
following further review the committee decided 
that for the year ending 31 march 2012 the revised 
policy should be fully extended to the chief 
executive with some adjustment to reflect the 
terms of his remuneration agreed on recruitment  
as discussed opposite
this report has been prepared in accordance  
with the requirements of the companies act  
2006 the act and schedule 8 of the large and 
medium sized companies and groups accounts 
and reports regulations 2008 the regulations  
the listing rules of the uk listing authority and  
the combined code pricewaterhousecoopers  
llp has audited such content as required by the  
act the tabular information on pages 54 to 56  
a resolution to approve this report will be  
proposed at the agm on 28 july 2011
remuneration 	 committee
the remuneration committee the committee 
comprises independent nonexecutive directors  
and the chairman of the board the members of  
the committee during the year and up to the  
date 	 of 	 this 	 r eport 	 wer e
evert henkes chairman  
liz airey until 1 july 2010 
william camp from 1 may 2010 
richard delbridge until 1 july 2010 
sir peter gershon 
douglas hurt from 10 march 2010 to 1 july 2010 
robert walker 
dr barry zoumas until 1 july 2010
the chief executive executive vice president 
human resources group compensation manager 
and executive vice president company secretary 
and general counsel who acts as secretary to the 
committee are normally invited to attend meetings 
to assist the committee although none is present  
or involved when his or her own remuneration  
is discussed
the committee’s terms of reference which  
can be found on the company’s website at  
wwwtateandlylecom are reviewed annually  
to ensure they reflect best practice 
the committee met six times during the year 
individual members’ attendance records at meetings 
during the year are given in the table on page 43
governance directors’ remuneration report
main responsibilities of the  
remuneration 	 committee
the 	 committee’ s 	 main 	 r esponsibilities 	 include
•	 	 setting 	 the 	 r emuneration 	 of 	 the 	 executive	
directors the company chairman and other 
senior management in accordance with a 
policy determined by the committee and 
agreed with the board 
•	 	 r eviewing 	 the 	 competitiveness 	 of 	 executive	
remuneration using data from independent 
consultants
•	 	 r eviewing 	 the 	 operation 	 of 	 the 	 longterm	
incentive plan and annual bonus plan and 
determining the participants and overall  
grant levels and
•	 	 setting 	 performance 	 tar gets 	 for 	 the 	 annual	
bonus plan and longterm incentive plan  
and reviewing performance against  
these targets nonperformance
related pay 40
performancerelated pay 60
target performance
chief executive
nonperformance
related pay 53
performancerelated pay 47
 
chief financial ofcer
nonperformance
related pay 18
performancerelated pay 82
stretch performance
chief executive
nonperformance
related pay 19
performancerelated pay 81
 
chief financial ofcer
nonperformance
related pay 40
performancerelated pay 60
target performance
chief executive
nonperformance
related pay 53
performancerelated pay 47
 
chief financial ofcer
nonperformance
related pay 18
performancerelated pay 82
stretch performance
chief executive
nonperformance
related pay 19
performancerelated pay 81
 
chief financial ofcer
shareholder information
business review governance financial statements
tate  lyle annual report 2011   45
remuneration 	 arrangements 	 during 	 the 	 year	
ended 31 march 2011 for executive directors
balance between fixed and performance
related components
the relative proportions of fixed and performance
related remuneration for the chief executive and 
the chief financial officer are shown below these 
are valued at both target and stretch performance 
levels including base salary annual bonus and the 
award value of the longterm incentives
chief executive’s remuneration package 
the committee has agreed the following changes  
to the chief executive’s remuneration package  
to align these components with the new executive 
remuneration policy agreed in 2010 which is already 
applicable 	 to 	 the 	 chief 	 financial 	 of ficer 	
annual bonus changes effective for year  
ending 31 march 2012 
•	 	 annual 	 bonus 	 payable 	 for 	 performance 	 at	
threshold will reduce from 10 of base salary  
to 0 of base salary 
•	 	 maximum 	 annual 	 bonus 	 payable 	 for 	 outstanding	
performance will increase from 150 to 175  
of base salary and 
•	 	 the 	 portion 	 of 	 any 	 annual 	 bonus 	 payment 	 that	
exceeds 100 of base salary will be delivered  
in the form of t ate  lyle plc shares which  
are deferred for two years and subject to  
service conditions
the chief executive will continue to be entitled to  
a 75 target bonus to respect the arrangements 
agreed upon his recruitment
longterm incentive – performance share plan 
changes effective for grant in 2012 
•	 	 the 	 level 	 of 	 vesting 	 at 	 thr eshold 	 performance 	 will	
reduce from 25 of the award to 15 the award 
level remains at 300 of base salary the level 
agreed when javed ahmed was recruited in 2009
the chief executive’s shareholding target will remain 
at 4x base salary he has already met this target
changes to incentive arrangements are an 
important component in delivering the business 
strategy they help to provide focus on the drivers 
of sustained longterm growth including product 
innovation and strengthening our position in high 
growth markets the agreed annual bonus plan 
incorporates metrics based on sales profitability 
and conversion of profits to cash which are all 
key indicators of whether the strategy is being 
delivered the performance share plan psp 
measures how successfully we grow the absolute 
level of profits and deliver a strong return on the 
capital we employ over the threeyear performance 
period executives have a substantial stake in 
tate  lyle shares and dividends through deferral 
of part of annual bonus into shares large executive 
shareholding requirements and the shares held  
in the psp 
remuneration 	 strategy 	 and 	 policy
strategy
the company’s remuneration strategy is to provide 
remuneration packages that attract retain and 
motivate highcalibre individuals to deliver superior 
operational performance and outstanding financial 
results in a manner that aligns with the group’s 
core values and business code of conduct and 
fosters sustainable profitable growth to do so 
packages 	 must	
•	 be 	 aligned 	 to 	 shar eholders’ 	 inter ests
•	 be 	 competitive
•	 	 encourage 	 a 	 focus 	 on 	 longterm 	 sustained	
performance and risk management
•	 be 	 fair 	 and 	 transpar ent 	 and
•	 be 	 consistent 	 acr oss 	 the 	 gr oup
policy
to achieve the strategy the policy for the 
remuneration of executive directors and senior 
executives 	 includes
•	 	 setting 	 base 	 salary 	 ar ound 	 the 	 market 	 median
•	 	 r ewar ding 	 str etching 	 superior 	 performance 	 with	
upper quartile levels of reward
•	 	 pr oviding 	 an 	 appr opriate 	 balance 	 between	
reward in the short and the long term and 
between reward that is fixed and variable and
•	 	 pr oviding 	 a 	 competitive 	 balanced 	 package	 
of benefits
the committee takes into account the general pay 
and employment conditions of other employees 
of the company when determining executive 
directors’ remuneration for the relevant financial 
year this includes considering the levels of base 
salary increase for employees below executive 
level when reviewing executive base salaries and 
ensuring that the same principles apply in setting 
performance targets for executives’ incentives as 
for other employees of the group
it is the intention to retain the policy referred to 
above in the forthcoming year 46   tate  lyle annual report 2011
governance directors’ remuneration report
summary of remuneration components
the current remuneration package for executive directors consists of base salary annual bonus  
longterm 	 incentives 	 and 	 r etir ement 	 and 	 other 	 benefits 	 as 	 follows
component objective summary
base salary reflects market value  
of the individual their 
skills and experience 
and performance
• 	 	 reviewed 	 annually 	 with 	 changes 	 usually 	 taking 	 ef fect 	 on 	 1 	 april
• 	 	 	 benchmarked 	 against 	 r elevant 	 comparators 	 primarily 	 the	 
50th to 130th ranked companies of the ftse index 
• 	 	 	 base 	 salary 	 r eviews 	 take 	 into 	 account 	 pay 	 incr ease 	 levels 	 for	
employees below the executive level and the impact on pension  
and other consequences of increases
• 	 	 	 positioned 	 ar ound 	 the 	 median 	 of 	 the 	 r elevant 	 market 	 taking	 
account of personal performance
annual bonus rewards the 
achievement of the 
annual performance 
objectives of the 
company
• 	 	 thr ee 	 performance 	 metrics 	 apply 	 sales 	 pr ofit 	 and 	 cash 	 conversion
• 	 	 gr eatest 	 weighting 	 is 	 on 	 pr ofit 	 and 	 a 	 minimum 	 pr ofit 	 hur dle 	 also 	
applies before any bonus is payable against any of the metrics
• 	 	 t ar gets 	 for 	 each 	 metric 	 ar e 	 set 	 at 	 the 	 start 	 of 	 each 	 financial 	 year 	
taking account of the business strategy performance in previous 
years market expectations and the prevailing economic climate
• 	 	 the 	 chief 	 financial 	 of ficer’ s 	 thr eshold 	 tar get 	 and 	 maximum 	 annual 	
bonuses are 0 50 and 175 of base salary respectively 
the equivalent figures for the chief executive in accordance with 
the special arrangements that were put in place to facilitate his 
recruitment are 10 75 and 150 of base salary
1
 
• 	 	 for 	 the 	 maximum 	 bonus 	 to 	 be 	 payable 	 performance 	 in 	 all 	 thr ee	
metrics is required to be outstanding
• 	 	 the 	 portion 	 of 	 any 	 annual 	 bonus 	 above 	 100 	 of 	 base 	 salary 	 is	
delivered in tate  lyle plc shares
1
 which are deferred for two  
years these do not benefit from any matching 
• 	 	 the 	 committee 	 can 	 ‘claw 	 back’ 	 bonus 	 in 	 the 	 exceptional 	 event	 
of misstatement of results or gross misconduct
longterm 
incentives
rewards sustained 
performance and helps 
retain talent
• 	 	 a war ds 	 in 	 the 	 form 	 of 	 performance 	 shar es 	 that 	 vest 	 after	 
three years subject to demanding performance requirements
• 	 	 t wo 	 performance 	 metrics 	 apply 	 ear nings 	 per 	 shar e 	 gr owth	 
and percentage return on capital employed
• 	 	 maximum 	 annual 	 awar d 	 size 	 is 	 curr ently 	 250 	 of 	 base 	 salary
2
 
although the committee may make awards up to 300 of base 
salary if necessary to ensure market competitiveness and taking 
account of group performance however only 15 of the award 
vests at threshold performance
2
 outstanding performance is  
required for 100 vesting
shareholding 
requirement
ensures alignment  
with shareholders
•  the chief executive and the chief financial officer have target 
holdings of four and three times base salary respectively
pension provides competitive 
pension with low risk  
to the company
• 	 	 only 	 base 	 salary 	 is 	 pensionable 	 for 	 executive 	 dir ectors
• 	 	 the 	 chief 	 executive 	 has 	 a 	 defined 	 contribution 	 cash 	 allowance 	 of	
35 of base salary
• 	 	 the 	 chief 	 financial 	 of ficer 	 had 	 a 	 defined 	 benefit 	 of 	 138th 	 of 	 final 	
salary 3 employee contribution until 5 april 2011 which from  
6 april 2011 changes to a cash allowance of 25 of base salary
other benefits provide competitive 
benefits
• 	 	 these 	 include 	 car 	 or 	 car 	 allowance 	 benefit 	 health 	 insurance 
group income protection and where appropriate life cover
1  in accordance with the special arrangements that were put in place to facilitate his recruitment the chief executive can earn a bonus of 
up to 150 of base salary which is not subject to deferral with effect for the year ending 31 march 2012 the chief executive’s threshold 
target and maximum annual bonus will be 0 75 and 175 of base salary respectively with the portion of bonus above 100 of base 
salary deferred into shares for two years the change in the maximum and threshold bonus potential and deferral of bonus will align these 
elements with the new policy 
2  in accordance with the special arrangements that were put in place to facilitate his recruitment the chief executive’s award level is set at 
300 of base salary with 25 vesting at threshold performance with effect from the longterm incentive grant scheduled for 2012 the 
level of vesting at threshold performance for the chief executive will reduce to 15 of the award to align it with the new policy
base salary
the chief executive’s base salary having remained unchanged in 2010 was increased by 37 with 
effect from 1 april 2011 the chief financial officer’s base salary was increased by 30 with effect from 
1 april 2011 this compared with average levels for other uk based employees who were awarded a 
base salary increase generally of between 3 and 4 
executive directors’ base salaries are shown in the table below
as at 1 april 
2011 
£
2010 
£
javed ahmed 700 000 675 000
tim lodge 394 000 382 500 shareholder information
business review governance financial statements
tate  lyle annual report 2011   47
annual bonus scheme
bonus for the year ended 31 march 2011
the annual bonus opportunity for each executive director is shown in the table below
 of base salary
threshold target maximum
javed ahmed 10 75 150
tim lodge
1
0 50 175
1  the portion of bonus that exceeds 100 of base salary is delivered in deferred shares
thr ee 	 performance 	 factors 	 wer e 	 applied 	 to 	 the 	 annual 	 bonus 	 these 	 ar e 	 shown 	 in 	 the 	 table 	 below
effective weighting
2
at max bonus
performance 
factor
1
 
 
definition
 
 
reasons 	 for 	 selecting
chief  
executive
chief  
financial 
officer
pbtea profit before tax exceptional items 
and amortisation
measures the underlying profits 
generated by the business and 
whether management is converting 
growth into profits effectively 
870  708 
net sales 
less cost 
of raw 
materials 
gross sales net of associated 
selling costs less the costs of raw 
materials used in production
measures whether management is 
growing the business growth is taken 
after cost of raw materials to better 
reflect value added
65   146 
cash 
conversion 
cycle ccc 
the number of days between 
disbursement of cash and collection 
of cash taking account of inventory 
payables and receivables
measures whether the business is 
managing its working capital and 
converting profit into cash effectively 
65  
 
 
146 
 
 
1  for bonus purposes all three metrics are measured on the basis of constant exchange rates and subject to adjustments reviewed and 
approved by the committee to ensure that the results are a true reflection of the actual performance performance is assessed on the 
group’s continuing operations 
2  the effective factor weighting at maximum bonus is calculated by reference to the difference in the multipliers that apply to achieve 
maximum bonus versus those at threshold calculating the relative weight of these increments 
the ccc metric is based on a straight average of the four quarter ending numbers ie at 30 june 2010 
30 september 2010 31 december 2010 and 31 march 2011 to avoid a focus purely on the yearend 
numbers which may be distorted and not reflect underlying working capital and cash management 
performance throughout the year 
for each performance factor there is a corresponding multiplier at the threshold target and stretch level  
of performance and sliding scales between them 
how the multiplier works
the multipliers for the pbtea factor are more heavily geared than for the other two factors reflecting 
the fact that pbtea is the most important of the three metrics before any bonus is payable a minimum 
level of profit has to be achieved regardless of the level of performance in the net sales less cost of raw 
materials and cash conversion cycle metrics to achieve the maximum payout performance against all 
three factors must be at the stretch level the multipliers are predetermined by the committee and the 
relative weightings reflect the importance of each of the metrics for the coming year in the context of the 
progress made against the overall longterm strategy 
once the performance outcome is known for each metric the relevant multiplier is calculated for each  
the target bonus is then adjusted by each of the multipliers to arrive at the final bonus outcome
target bonus 
 	 of 	 base 	 salary
chief executive 
75
chief financial 
officer 50
pbtea 
performance 
multiplier
net sales 
less cost of  
raw materials 
performance 
multiplier
cash  
conversion 
cycle 
performance 
multiplier
bonus  
achieved  
as 	  	 of	 
base salary
 step 1 step 2 step 3 20 50 175
weighting of bonus metrics for chief financial 
ofcer at different levels of bonus 
100
bonus
175
represents 100 of base 
salary above which any 
bonus is deferred into 
shares for 2 years
target  50
maximum  175
the weighting of the bonus metrics at 
a level of 20 has been included in the 
above for illustrative purposes only
ccc
pbtea
net sales less raw
20 75 150
weighting of bonus metrics for chief executive 
at different levels of bonus 
bonus
target  75
maximum  150
the weighting of the bonus metrics at 
a level of 20 has been included in the 
above for illustrative purposes only
ccc
pbtea
net sales less raw
150
48   tate  lyle annual report 2011
the 	 table 	 below 	 shows 	 r elative 	 to 	 2010 	 actual 	 performance 	 i 	 the 	 performance 	 r equir ed 	 to 	 achieve	
maximum bonus and ii the 2011 actual performance all numbers are shown at constant exchange rates
as at 1 april 2011
performance factor
performance 
requirement  
to achieve 
maximum bonus
 
 
actual 
performance
pbtea 226 296
net sales less cost of raw materials 04 28
cash conversion cycle 119 248
the table below shows the actual performance outcome for 2011 relative to the bonus range
performance  
factor
actual  
performance 
outcome
1
 
 
commentary 
pbtea above stretch 
performance level
the strong growth in pbtea was driven by higher sales volumes 
operational leverage improved product mix very strong returns from 
coproducts and lower manufacturing costs for splenda
®
 sucralose 
net sales less  
cost of raw  
materials
above stretch 
performance level
there was good growth in sales volumes across both main businesses 
in speciality food ingredients volume growth was 7 although sales 
value was impacted by reduced selling prices for splenda
®
 sucralose 
reflecting the strategy of securing longterm volume incentive contracts 
with customers bulk ingredients benefited from higher coproduct 
income and an improved performance from the ethanol business offset 
by lower margins in sweeteners and industrial starches 
cash  
conversion  
cycle 
above stretch 
performance level 
 
good progress was made on all working capital items but was offset by 
rising corn inventories in the usa towards the year end as the group 
sought to manage the supply risk in the coming year following market 
predictions of low corn inventories prior to the 2011 harvest
1  in view of the performance outcomes for the year ended 31 march 2011 in the table above the maximum annual bonus of 175 of base 
salary for the chief financial officer and 150 of base salary for the chief executive were awarded by the committee
the following charts show for the chief executive and chief financial officer the weighting of each metric 
relative to threshold for given levels of actual bonus all numbers are at constant exchange rates 
governance directors’ remuneration report bottom
quartile
third
quartile
second
quartile
top
quartile
2008 psp award total shareholder return
tate  lyle and comparator group from
1 april 2008 to 31 march 2011
3year tsr 
each bar in the chart represents a company 
in the comparitor group
source kepler associates
100
50
0
50
100
150
200
250
tate  lyle
391
shareholder information
business review governance financial statements
tate  lyle annual report 2011   49
historical performance criteria and vesting
relative tsr performance was used as the sole 
performance criterion until 2009 when an earnings 
per share eps performance condition was 
introduced alongside relative tsr for 50 of the 
award the following table shows the vesting levels 
of awards granted from 2003 up to 2008 awards 
made under the psp in 2005 2006 and 2007 
did not vest because the threshold performance 
conditions were not met
year of award year of vesting level of vesting
2003 2006 84 
2004 2007 100
2005 2008 0
2006 2009 0
2007 2010 0
2008 2011 81
maximum award level
following shareholder approval of the changes 
to the psp at the 2010 agm executive directors 
and other senior executives are awarded at the 
discretion of the committee a conditional right to 
receive a number of tate  lyle ordinary shares 
in value up to 250 of base salary per annum 
with flexibility for the committee to make awards 
of up to 300 of base salary where necessary to 
ensure market competitiveness taking account of 
company performance 
javed ahmed received special longterm incentive 
lti awards to facilitate his recruitment detailed 
in the annual report 2009 and also on page 55 
although these were not granted under the psp  
they have similar terms including the same 
performance conditions to psp awards 
any bonus amount up to 100 of base salary  
is paid in cash any excess above 100 of base 
salary is delivered in the form of a conditional 
award of tate  lyle plc shares which carry 
the right to receive an amount equivalent to the 
ordinary dividend to be paid in cash or shares 
as determined by the committee the shares 
are released and the dividend equivalent paid or 
released after two years subject to the executive 
remaining in service with the company in 
accordance with the special arrangements that 
were put in place to facilitate his recruitment  
the chief executive was entitled to a bonus of  
up to 150 of base salary for the year ended  
31 march 2011 none of which is deferred
both the cash award and the share component  
are subject to ‘clawback’ which means they may 
be recouped in whole or in part at the discretion  
of the committee in the exceptional event that 
results were found to have been misstated or if  
an executive commits gross misconduct
longterm 	 incentive 	 arrangements
performancebased longterm incentive plans 
ltips closely align executive directors’ and senior 
executives’ interests with those of shareholders 
and are therefore an important component of the 
overall package 
during the year ended 31 march 2011 the 
company operated an ltip  the tate  lyle 2003 
performance share plan psp there are some 
remaining awards that were made under earlier 
plans that are no longer in operation or have  
been suspended
performance share plan psp
2008 psp award
as shown in the graph on the right for the  
performance period from 1 april 2008 to 31 march 
2011 in relation to the psp awards made in 2008 
tate  lyle’s share price growth and dividend 
yields resulted in a total shareholder return tsr 
that ranked tate  lyle at 26th position 69th 
percentile in the comparator group of companies 
being the occupying positions 50 to 130 of the 
ftse rankings at the beginning of the performance 
period this is second quartile performance at 
which level the performance condition specifies 
that 81 of the conditional award made in 
2008 is eligible for release with effect from the 
determination of the performance conditions
the performance condition also specifies that 
before any 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 award made in 2008 under the 
psp  the committee considers that the underlying 
financial performance of tate  lyle over the 
performance period does justify the participants 
receiving their shares 50   tate  lyle annual report 2011
performance conditions – 2010 awards
the number of shares a participant ultimately receives depends on the group’s performance during the 
threeyear performance period beginning on 1 april in the year of the award for the 2010 awards the 
performance 	 conditions 	 comprised 	 two 	 elements
a adjusted diluted earnings per share eps 50 of total award
performance is measured by comparing the compound annual growth rate cagr of the company’s 
adjusted diluted eps from continuing operations over the threeyear performance period against 
predetermined targets the committee selected this metric as it is a key determinant of shareholder  
value creation
b adjusted return on capital employed roce 50 of the total award
performance is measured by the adjusted roce on continuing operations achieved at the end of  
the threeyear performance period against the predetermined targets the original targets of 130 at 
threshold and 160 at maximum vesting as disclosed in the notice of meeting for the 2010 annual 
general meeting were revised following the sale of eu sugars on 30 september 2010 to 134 and 164 
respectively in each case representing an increase of 100 basis points and 400 basis points respectively 
relative to the adjusted roce which was also revised on a like for like basis achieved in the year ended 
31 march 2010 the committee selected this metric as it is a good indicator of the effectiveness of strategic 
investment decisions and of the quality of earnings generated importantly the roce outcome is adjusted  
downward by adding back any asset impairments into capital employed this is to encourage a prudent 
investment strategy for this reason in the event of there being an impairment of assets the roce figure 
for psp purposes can be significantly lower than the unadjusted roce number reported in the  
company’s accounts 
the two metrics referred to above provide better line of sight for participants than relative tsr  
as tate  lyle has few if any directly comparable peers that can be used to create a peer group
shar es 	 awar ded 	 under 	 the 	 psp 	 in 	 2010 	 vest 	 in 	 accor dance 	 with 	 the 	 following 	 schedule	
percentage of award vesting
cagr of adjusted diluted eps  
during the performance period 
50 of award
adjusted roce at end of  
performance period
50 of award
0 below 6 below 134
15
1
6 134
on a straight line between 15 and 100 between 6 and 15 between 134 and 164
100 15 or more at 164 or above
1  in accordance with the special arrangements that were put in place to facilitate the chief executive’s recruitment 25 of his award  
vests at threshold performance
there is no retesting of the performance conditions
before any shares become eligible for release the committee must also be satisfied that this is justified 
by the underlying financial performance of the group over the measurement period subject to the 
committee’s approval the conditional award is then converted into a nilcost option to acquire the 
appropriate number of shares 
deferred bonus share plan dbsp suspended scheme
awards were made under the dbsp from 2005 to 2008 and it was suspended in 2009 under the dbsp  
executives had the opportunity to defer up to 50 of their annual cash bonus after deduction of tax 
national insurance or other social security payments and invest the amount deferred in the company’s 
shares subject to the satisfaction of a performance condition over the performance period participants 
received awards of matching shares based on the number of shares which could have been acquired from 
the gross bonus amount deferred by the participant lodged shares the performance conditions attached 
to past awards is the same as that attached to psp awards made in the same year the performance 
conditions attached to the psp awards made in 2008 are described on page 49 accordingly 88 of the 
maximum matching shares available under the dbsp conditional award in 2008 is eligible for release
change of control and voting
all of the company’s share plans contain provisions relating to a change of control outstanding 
awards and options would normally vest and become exercisable on a change of control subject to the 
satisfaction of any performance conditions at that time and in proportion to the time served during the 
performance period
governance directors’ remuneration report shareholder information
business review governance financial statements
tate  lyle annual report 2011   51
executive shareholding policy
the committee monitors the policy annually the chief executive has met his shareholding target of four 
times base salary to be acquired by 1 october 2014 the chief financial officer has a target shareholding  
of three times base salary by 22 july 2015 
sharesave scheme
the scheme is open to all employees in the uk including executive directors no performance conditions 
are attached to options granted under the scheme since it is an allemployee scheme and the value of 
individual grants is capped options granted to participants are normally set at a discount of 10 to the 
market value of the shares at the time of the grant
dilution 
to satisfy options granted under the 1992 executive share option scheme closed in july 2000 and 
the sharesave scheme the company issues new shares to satisfy outstanding awards under the 2000  
executive share option scheme psp and dbsp matching shares the company uses either treasury  
shares or shares that have been purchased by the trustees of the tate  lyle employee benefit trust  
the company will use shares that have been purchased by the employee benefit trust to satisfy awards 
made to javed ahmed and any awards to be made under the group bonus plan
in the tenyear period to 31 march 2011 awards made under the executive schemes represented 071  
of the company’s issued ordinary share capital 2010 – 16 leaving available dilution headroom of 429 
2010 – 34 awards made under all share schemes represented 11 of the company’s issued ordinary 
share capital 2010 – 30 leaving available dilution headroom of 89 2010 – 70
pensions
the group’s largest pension scheme is the ukbased tate  lyle group pension scheme group scheme 
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 definedcontribution type pension provision through a 
stakeholder plan which is an insurancebased contract the group scheme closed to future final salary 
pension accrual from 6 april 2011 and the employee members have been offered membership of the 
existing stakeholder plan 
javed ahmed is not a member of the group scheme for pension purposes and accordingly has accrued  
no pension benefits under it he is paid a cash allowance calculated as 35 of base salary from which he 
can make his own retirement savings arrangements although this may include the company stakeholder 
plan he has been provided with life assurance cover and has also participated in the group income 
protection scheme which applies to all uk employees who are not otherwise covered for illhealth  
benefits under the group scheme 
tim lodge was a member of the group scheme until its closure and accrued pension at a rate of 
approximately 138th of pensionable earnings basic salary only for each year of service subject to an 
employee contribution of 3 of pensionable salary the benefit accrued includes a widow’s pension 
payable on his death and a lump sum on death in service once in payment this part of his pension and 
any subsequent widow’s pension will be subject to increases in line with price inflation up to a maximum  
of 5 with a minimum of 3 from 6 april 2011 tim lodge is paid a cash allowance calculated as 25  
of base salary from which he can make his own retirement savings arrangements although this may  
include the company stakeholder plan
details of the accrued pension benefits for tim lodge under the group scheme are given on page 56 
details of amounts paid in lieu of pensions to javed ahmed are included in the table on page 54 under 
pension allowance 52   tate  lyle annual report 2011
service contracts of executive directors
the policy in determining service contracts is to take account of market practice and to ensure that 
provisions in relation to termination notice periods or payments are not excessive the following table 
summarises the key provisions of the executive directors’ service contracts not referred to elsewhere  
in this report
provision javed ahmed – chief executive tim 	 lodge 	 – 	 chief 	 financial 	 of ficer 	
notice period
•	 by 	 the 	 dir ector
•	 by 	 the 	 company
 
6 months
12 months
 
6 months
12 months
termination payment the company has the right but not the 
obligation to pay in lieu of notice the  
base salary and pension allowance that 
would have been payable during the 
notice period
the company has the right but not the 
obligation to pay in lieu of notice the salary 
pension and other contractual benefits 
arising during the notice period the 
company has the contractual right to phase 
the payments and to reduce them if the 
executive mitigates his loss 
expenses reimbursement of expenses reasonably 
incurred in accordance with his duties
reimbursement of expenses reasonably 
incurred in accordance with his duties
holiday entitlement 30 days 30 days
sick pay full basic salary for the first 26 
consecutive weeks and thereafter at  
a rate reduced by up to half at the 
committee’s discretion subject to 
termination by the company
full basic salary for the first 26 consecutive 
weeks and thereafter at a rate reduced by 
up to a half at the committee’s discretion 
subject to termination by the company
restrictive covenants for the period of 12 months less any 
garden leave period following termination 
of employment
for the period of 12 months less any  
garden leave period following termination  
of employment
contract  
commencement date
 
1 october 2009
 
4 december 2008
executive directors’ external appointments
the board believes that the company benefits from executive directors holding external nonexecutive 
directorships at the appropriate time such appointments are subject to approval by the board and are 
normally restricted to one position for each executive director fees may be retained by the executive 
director concerned neither of the executive directors holds a nonexecutive directorship currently 
chairman’s fees
sir peter gershon became chairman on 23 july 2009 receiving fees of £275000 per annum which 
remained unchanged for the year ended 31 march 2011 the committee reviews the chairman’s fees each 
year and the chairman does not participate in discussions or decisions relating to his own remuneration 
following the most recent review of fees the remuneration committee approved an increase in the 
chairman’s fees to £283250 effective 1 april 2011
nonexecutive 	 dir ectors’ 	 fees
nonexecutive directors’ fees reviewed annually by the board are set at a level to retain individuals  
with the necessary experience and ability to make a substantial contribution to the group fees paid  
are commensurate with those paid by other uklisted companies 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 tate  lyle research advisory group
the nonexecutive directors do not participate in the group’s incentive or pension schemes nor do they 
receive other benefits 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 of their terms of appointment every three years subject to their reelection  
by shareholders nonexecutive directors have no right to compensation on the early termination of  
their appointment 
governance directors’ remuneration report shareholder information
business review governance financial statements
tate  lyle annual report 2011   53
the chairman and the deputy company secretary undertook a detailed review of the actual and 
anticipated time commitments of each of the nonexecutive directors excluding the chairman  
the analysis indicated that the time commitments for nonexecutive directors were well in excess of 
the time commitment indicated in their appointment letters a review of market data provided by hnbs 
indicated that the current basic fee level was significantly below the market median for companies  
of similar size and complexity to tate  lyle taking account of the current market position and the  
increased time commitment required of the nonexecutive directors the executive directors and the 
chairman agreed that an adjustment to nonexecutive directors’ fees be made with effect  
from 1 april 2011 the fees are shown in the following table
basic fees per annum
at 1 april 2011 
£
at 1 april 2010 
£
nonexecutive director 58 000 49 200
senior independent director 64 650 55 850
supplemental fees per annum
at 1 april 2011 
£
at 1 april 2010 
£
chairman of audit committee 15 375 15 375
chairman of remuneration committee 10 250 10 250
chairman of research advisory group 21 525 21 525
executive directors’ total remuneration package for the year ended 31 march 2011
the following tables show the remuneration package of the executive directors for the year ended  
31 march 201 1
javed ahmed chief executive
element 
below threshold 
performance  
£000
at threshold 
performance
£000
at target
performance
1
£000
at stretch 
performance
£000
actual earned
vested
2
£000
base salary 675 675 675 675 675
annual bonus none 68 
10 of  
base salary
506 
75 of  
base salary
1 013 
150 of  
base salary
1 013
lti – face value of 2010 grant    
  vesting deferred until 2013
none 506
25 vesting
1 266
625 vesting
2 025
100 vesting
–
lti vesting for performance to  
  31 march 2011
3
  
 
–
 
–
 
–
 
–
 
1 267
pension allowance 236 236 236 236 236
other benefits 19 19 19 19 19
total value 930 1 504 2 702 3 968 3 210
tim 	 lodge 	 chief 	 financial 	 of ficer
element 
below threshold 
performance  
£000
at threshold 
performance
£000
at target
performance
1
£000
at stretch 
performance
£000
actual earned
vested
2
£000
base salary 383 383 383 383 383
annual bonus
4
none 0 
0 of   
base salary
191 
50 of  
base salary
669 
175 of  
base salary
669
lti psp – face value of 2010 grant    
  vesting deferred until 2013
none 143
15 vesting
550
575 vesting
956
100 vesting
–
lti psp and dbsp vesting for  
  performance to 31 march 2011 
 
–
 
–
 
–
 
–
 
185
cash value of pension accrual
56
 216 216 216 216 216
other benefits 14 14 14 14 14
total value 613 756 1 354 2 238 1 467
1  in the case of the lti ‘target’ is taken to be midway between threshold and stretch
2  actual annual bonus earned in respect of 2011 and lti vesting of 81 following yearend 31 march 2011 which are valued using the  
closing share price on 31 march 2011 in the case of tim lodge his psp award which will convert into a deferred right to acquire the 
appropriate number of tate  lyle plc shares at the end of a one year retention period subject to service conditions represents £150658 
and the dbsp £34350 representing the matching component of shares awarded in 2008 
3   relates to special incentive arrangements upon recruitment to compensate for lti awards foregone as a result of leaving his former employer
4  the portion of bonus that exceeds 100 of base salary is deferred into tate  lyle plc shares for two years
5  estimated value of defined benefit pension accrual has been calculated taking account of the accrual rate salary increase effective  
1 april 2010 pensionable service and the hmrc valuation factor
6  as of 6 april 2011 the group pension scheme closed to future accrual tim lodge who was a member of the scheme now receives  
25 of base salary as a cash allowance and no longer accrues a defined benefit pension tate  lyle’s veyear cumulative 
total shareholder return
value of £100 invested on 31 march 2006
30
60
90
120
150
£
march 11
tate  lyle
ftse
100
index
march 10 march 09 march 08 march 07 march 06
source kepler associates
54   tate  lyle annual report 2011
total shareholder return performance
the graph below as required under the regulations illustrates the cumulative tsr performance of 
tate  lyle against the ftse 100 index over the past five years the ftse 100 index is considered to  
be an appropriate benchmark for this purpose as it is a broad equity market index with constituents 
comparable in size to tate  lyle the graph shows the tsr for the ftse 100 index and tate  lyle  
in the five years from 31 march 2006 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
directors’ emoluments audited
the following table shows the directors’ emoluments for the year ended 31 march 2011
salary  
and fees 
£000
pension  
and other
 allowances
1
£000
 
 
benefits
2
£000
annual  
bonus 
 – cash 
£000
annual  
bonus
 – deferred
3
£000
total year to  
31 march  
2011 
£000
total year to  
31 march  
2010
£000
chairman
sir peter gershon 275 15 – – – 290 231
executive directors
javed ahmed 675 347 4 1 013 – 2 039 977
tim lodge 383 13 1 383 286 1 066 742
nonexecutive 	 dir ectors
liz airey 65 – – – – 65 63
william camp
4
45 – – – – 45 –
evert henkes 59 – – – – 59 58
douglas hurt 49 – – – – 49 3
robert walker 54 – – – – 54 48
dr barry zoumas 71 – – – – 71 69
former directors
richard delbridge
5
17 – – – – 17 55
directors who retired 
   before 31 march 2010
6
 
–
 
–
 
–
 
–
 
–
 
–
 
1 379
total 1 693 375 5 1 396 286 3 755 3 625
1  other allowances include car allowance which in the case of javed ahmed is £15000 with a further £96043 representing payments  
in lieu of dividends on an award of shares as disclosed in the share awards table on page 55 
2  benefits for the executive directors include health insurance
3 deferred into tate  lyle plc shares for two years and subject to service conditions
4 william camp was appointed to the board with effect from 1 may 2010
5 richard delbridge ceased to be a director on 22 july 2010
6  under the agreements signed at the time that iain ferguson stood down as chief executive and a director referred to in the annual 
report 2010 he will be entitled to receive an amount during the year ending 31 march 2012 relating to psp shares foregone for the  
period 1 january 2010 to 31 may 2010 part of which will relate to the year ended 31 march 2011 the final amount will be set out in  
the annual report 2012 the final amount will depend on the share price on the date of release likely in june 2011 on the basis of  
the current share price the amount would be in the region of £150000–£160000
governance directors’ remuneration report shareholder information
business review governance financial statements
tate  lyle annual report 2011   55
share awards audited
the 	 following 	 table 	 sets 	 out 	 the 	 curr ent 	 position 	 of 	 shar ebased 	 awar ds 	 made 	 to 	 executive 	 dir ectors
as at  
1 april 2010
number
awards  
granted  
during
year 
1
number
awards  
vested  
during  
year
number
awards  
lapsed  
during  
year
number
as at  
31 march  
2011
number
market  
price on  
date  
awards  
granted  
pence
market  
price on  
date  
awards  
vested  
pence
vesting  
date
javed ahmed
special 	 shar eincentive	
arrangements relating 
to recruitment 
compensatory awards
award a
2
419 403 – – – 419 403 44490 – 011011
award b
3
269 616 – – – 269 616 44490 – after 310311
award c
4
359 488 – – – 359 488 44490 – after 310312 
special 	 shar eincentive	
arrangements relating 
to 	 r ecruitment 	 long	
term incentive awards
award a
4
659 609 – – – 659 609 44490 – after 310312
award b
5
– 473 042 – – 473 042 44020 – after 310313
tim 	 lodge
t ate		l yle	
performance  
share plan 2003
6
2007
7
12 995 – – 12 995 – 57750 – –
2008 32 050 – – – 32 050 39425 – after 310311
2009 152 687 – – – 152 687 29425 – after 310312
2010 – 223 381 – – 223 381 44020 – after 310313
t ate 	  	 l yle 	 deferr ed	
bonus share plan 2005
6
 
2008
8
6 790 – – – 6 790 40100 – after 310311
1  the performance conditions for awards are adjusted diluted eps against which 50 of the award will be measured and adjusted roce 
for the remaining 50 of the award
2  this award to compensate javed ahmed for certain longterm incentives given up by him as a consequence of leaving his former employer 
is not subject to performance conditions the shares will be delivered on 1 october 2011 being the second anniversary of javed ahmed 
joining the company pending delivery he receives a payment in lieu of dividend on these shares which will be subject to the deduction of 
tax in the event of a change of control the shares will be delivered immediately
3 this award is subject to the same performance condition as that which applies to awards made under the psp in 2008 
4 this award is subject to the same performance condition as that which applies to awards made under the psp in 2009 
5 this award is subject to the same performance condition as that which applies to awards made under the psp in 2010 
6 the threeyear performance period for all awards begins on the first day of the financial year in which the award is granted
7 on 1 april 2011 100 of the conditional awards made in 2007 lapsed because performance conditions were not met
8  this was the last year in which awards were made under the dbsp prior to suspension of the arrangement with the performance 
conditions the same as those applying to the 2008 psp  the vesting will be determined based on tsr during the threeyear performance 
period against companies positioned 50 to 130 of the ftse index at the start of the performance period such that one matching share is 
awarded for each lodged share for median performance increasing on a prorata basis to two match shares for upper quartile performance 
as indicated on page 50 the tsr performance resulted in 88 of the maximum matching shares available under the award vesting  
allemployee 	 schemes 	 audited
details of the directors who were in office for any part of the financial year and hold or held options to 
subscribe for ordinary shares of the company are set out below
savingsrelated share options are options granted under the hmrcapproved sharesave scheme  
options are not subject to performance conditions and are normally exercisable during the sixmonth 
period following the end of the relevant three or fiveyear contract 
as at  
1 april 2010
number
options 
granted 
during year
number
options 
exercised 
during year
number
options 
lapsed 
during year
number
as at  
31 march  
2011
number
exercise 
price 
pence exercise period
javed ahmed
savingsrelated options 2009
 
3 720
 
–
 
–
 
–
 
3 720
 
41800
010315 to 
310815
tim lodge
savingsrelated options 2007
 
4 253
 
–
 
–
 
–
 
4 253
 
39500
010313 to 
310813
the market price of the company’s ordinary shares at the close of business on 31 march 2011 was 
57750p and the range during the year to 31 march 2011 was 40910p to 59950p 56   tate  lyle annual report 2011
directors’ pension provision audited
tim lodge is a member of the group scheme the information below sets out the disclosures required for 
him under both the listing rules of the uk listing authority and the regulations
age at 31 
march 2011
accumu
lated total
accrued
pension at
yearend
1
£000
director’s
contribu
tions  
during
the year
2
£000
increase
in accrued 
pension 
during
the year
3
£000
increase
in accrued 
pension 
during the 
year net of
inflation
4
£000
transfer 
value of 
increase 
in accrued 
pension 
net of  
inflation  
less 
director’s
contribu
tions
5
£000
transfer 
value of 
accrued 
pension at 
start
of period
6
£000
transfer 
value of 
accrued 
pension at
yearend
7
£000
increase  
in transfer 
value for  
the period 
less 
director’s
contribu
tions
8
£000
director
tim lodge 46 181 11 13 6 70 2 268 2 759 480
1  the figure represents the amount of pension benefits based on service pensionable earnings and where appropriate transferred pension 
rights which would have been preserved for tim lodge had he left service on 31 march 2011
2  the figure represents the contributions paid over the year
3  the figure represents the difference between the total accrued pension at 31 march 2011 and the corresponding accrued pension at the 
beginning of the year no allowance is made for inflation
4  the figure represents the difference between the accrued pension at 31 march 2011 and the corresponding accrued pension at the 
beginning of the year the figures quoted include an adjustment for inflation in accordance with the listing rules of the uk listing authority
5  the figure represents the transfer value of the inflationadjusted increase in the total accrued pension for the year net of the director’s  
own contributions we have used september 2010 rpi price inflation as our measure of inflation
6  the figure represents the transfer value of the accumulated total accrued pension as at the beginning of the year
7  the figure represents the transfer value of the accumulated total accrued pension at 31 march 2011
8  the figure represents the increase in the transfer value from the beginning of the year to 31 march 2011 the transfer values quoted  
have been calculated using the actuarial bases which applied at each reporting date net of the director’s own contributions
directors’ interests audited
the interests held by each person who was a director at the end of the financial year in the ordinary shares 
of 25 pence each in the company are shown below all of the interests set out in the table are beneficially 
held and no director had interests in any class of shares other than ordinary shares the table also 
summarises the interests in shares held through the company’s various share plans
ordinary shares lti
2
options
3
as at
1 april 2010
1
number
as at  
31 march 2011
number
as at
1 april 2010
1
number
as at  
31 march 2011
number
as at
1 april 2010
1
number
as at  
31 march 2011
number
chairman
sir peter gershon 35 255 58 975 – – – –
executive directors
javed ahmed 100 000 611 252 1 708 116
4
2 181 158
4
3 720 3 720
tim lodge 27 246 43 763 204 522 414 908 4 253 4 253
nonexecutive	
directors
liz airey 16 000 16 000 – – – –
william camp – – – – – –
evert henkes 1 016 1 065 – – – –
douglas hurt – 5 000 – – – –
robert walker 10 429 10 935 – – – –
barry zoumas 27 000 27 000 – – – –
1 or date of appointment if later
2  includes shares awarded under the psp  dbsp and the special arrangements that were put in place to facilitate javed ahmed’s recruitment 
which are subject to performance conditions
3 granted under the sharesave scheme
4 includes 419403 shares which are not subject to performance conditions see page 55 for details
there were no changes in directors’ interests in the period from 1 april 2011 to 26 may 2011
on behalf of the board
evert henkes
chairman of the remuneration committee
26 may 2011
governance directors’ remuneration report shareholder information
business review governance financial statements
tate  lyle annual report 2011   57
governance other statutory and governance information
restrictions 	 on 	 holding 	 shar es
there are no restrictions on the transfer of 
shares and prior approval is not required from 
the company nor from other holders for such a 
transfer no limitations are placed on the holding of 
shares and no share class carries special rights of 
control of the company there are no restrictions 
on voting rights other than those outlined above  
on preference shares
the company is not aware of any agreements 
between shareholders that may restrict the transfer 
or exercise of voting rights
reelection 	 of 	 dir ectors	
the company’s articles of association require 
all directors to seek reelection by shareholders 
at least once every three years in addition any 
directors appointed by the board must stand for 
reelection at the first agm following his or her 
appointment any nonexecutive directors who 
have served for more than nine years are subject  
to annual reelection 
as explained on page 35 the uk corporate 
governance code provides that all directors 
should seek reelection on an annual basis and 
accordingly all directors will seek reelection at the 
forthcoming agm the directors standing for re
election with the exception of javed ahmed and 
tim lodge do not have service contracts
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 
company shares is on page 56
directors’ indemnities and insurance cover 
as at the date of this report indemnities are in 
force under which the company has agreed to 
indemnify the directors to the extent permitted 
by the companies act 2006 against claims from 
third parties in respect of certain liabilities arising 
out of or in connection with the execution of their 
powers duties and responsibilities as directors 
of the company or any of its subsidiaries the 
directors are also indemnified against the cost of 
defending a criminal prosecution or a claim by the 
company its subsidiaries or a regulator provided 
that where the defence is unsuccessful the director 
must repay those defence costs these indemnities 
are qualifying indemnity provisions for the purposes 
of sections 232 to 234 of the companies act 
2006 and copies are available for inspection at the 
registered office of the company during business 
hours on any weekday except public holidays 
equivalent indemnities remain in force for richard 
delbridge who ceased to be a director on  
22 july 2010
the company also maintains directors’ and 
officers’ liability insurance cover the level of  
which is reviewed annually
principal activities of the group
the principal activities of tate  lyle plc and 
its subsidiary and associated undertakings 
together with its joint ventures are developing 
manufacturing and marketing food and industrial 
ingredients made from renewable resources
results 	 and 	 dividend
a review of the results is on pages 1 to 31 an 
interim dividend of 68p per ordinary share was 
paid on 7 january 2011 the directors recommend 
a final dividend of 169p per ordinary share to be 
paid on 5 august 2011 to shareholders on the 
register on 1 july 2011 subject to approval at the 
2011 annual general meeting agm the scrip 
dividend scheme has been closed and a dividend 
reinvestment plan is being offered the total 
dividend for the year is 237p per ordinary  
share 2010 – 229p
articles of association
the articles of association set out the internal 
regulation of the company and cover such matters 
as the rights of shareholders the appointment 
or removal of directors and the conduct of the 
board and general meetings copies are available 
on request and are displayed on the company’s 
website at wwwtateandlylecom
in accordance with the articles of association 
directors can be appointed or removed by the 
board or by shareholders in general meeting 
amendments to the articles of association have 
to be approved by at least 75 of those voting 
in person or by proxy at a general meeting of 
the company subject to uk company law and 
the articles of association the directors may 
exercise all the powers of the company and 
may delegate authorities to committees and 
daytoday management and decision making to 
individual executive directors details of the board 
committees can be found on pages 40 to 44
shareholders’ rights
holders of ordinary shares have the rights 
accorded to them under uk company law 
including the rights to receive the company’s 
annual report and accounts attend and speak  
at general meetings appoint proxies and  
exercise voting rights
holders of preference shares have limited voting 
rights 	 and 	 may 	 not 	 vote 	 on 	 the 	 disposal 	 of 	 surplus	
profits after the dividend on the preference 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 such 
matters further details regarding the rights and 
obligations attached to share classes are contained 
in the articles of association available on  
wwwtateandlylecom 58   tate  lyle annual report 2011
essential contracts and other arrangements
in light of the scope and diversity of the group’s 
activities there are no contracts or arrangements 
considered to be essential to the operation of the 
business or the group as a whole
resear ch 	 and 	 development
the group spent £25 million 2010 – £26 million  
on research and development during the year
donations
worldwide charitable donations during the year 
totalled £346000 2010 – £714000 of which 
£19000 2010 – £379000 was donated in the 
uk more details of the group’s community 
involvement can be found on page 31
again this 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 
business made contributions during the year 
totalling us27000 £17000 2010 – us47000 
£29000 to state and national political party 
committees and to the campaign committees 
of state candidates affiliated to the major 
parties the total includes us17000 £11000 
2010 – us13000 £8000 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 employeefunded pac must bear the 
name of the employing company
payment to suppliers
group policy is that wherever possible all  
whollyowned companies around the world follow 
the cbi prompt payers’ code code the code 
requires the company to agree terms of payment 
with suppliers to ensure suppliers are aware of 
those terms and to abide by them our policy is 
wherever possible to apply the requirements of  
the code to whollyowned companies around  
the world
tate  lyle plc is a holding company and had 
no amounts owing to trade creditors at 31 march 
2011 the group’s creditor days outstanding at 
31 march 2011 were 48 days 2010 – 53 days 
based on the ratio of group trade creditors at the 
end of the year to the amounts invoiced during  
the year by trade creditors
share capital 
at 31 march 2011 the company had nominal 
issued ordinary and preference share capital of  
£119 million comprising £117 million in ordinary 
shares including £004 million in treasury shares 
and £2 million in preference shares
to satisfy obligations under the scrip dividend 
scheme and employee share plans the company 
issued 7535640 ordinary shares during the 
year and reissued 337162 ordinary shares from 
treasury the company issued 5883 ordinary 
shares during the period from 1 april 2011 to  
26 may 2011 further information about share 
capital is in note 24 information about options 
granted under the company’s employee share 
schemes is in note 26
the company was given authority at the 
2010 agm to make market purchases of up 
to 46006320 of its own ordinary shares the 
company made no such purchases during the year 
ended 31 march 2011 this authority will expire at 
the 2011 agm and approval will be sought from 
shareholders for a similar authority to be given  
for a further year
substantial shareholdings
as at 26 may 2011 the company had been notified 
under rule 5 of the disclosure and transparency 
rules of the financial services authority of the 
following 	 holdings 	 of 	 voting 	 rights 	 in 	 its 	 shar es
number  
of shares
 
 held
invesco limited 65 321 630 1396
lloyds banking group plc 32 340 632 691
schroders plc 24 024 911 516
blackrock inc 23 330 220 499
axa sa 22 890 148 498
global aegon asset  
  management group 
 
18 718 460
 
400
lehman brothers  
  international europe
 
18 122 510
 
395
legal  general group plc 18 062 288 393
barclays global investors 17 568 133 359
change of control 
the company has a committed bank facility of 
us1 billion which matures in 2012 under the 
terms of this facility the banks can give notice to 
tate  lyle to prepay outstanding amounts and 
cancel the commitments where there is a change 
of control of the company the company is the 
guarantor of a £200 million bond issue by its 
subsidiary tate  lyle international finance plc 
dated 25 november 2009 which is repayable 
in 2019 under the terms of the bond issue 
noteholders have the option to request an early 
repayment where there is a change of control  
of the company
all of the company’s share schemes contain 
provisions relating to a change of control  
further information is on page 50
governance other statutory and governance information shareholder information
business review governance financial statements
tate  lyle annual report 2011   59
governance directors’ statement of responsibilities
the directors are responsible for the  
maintenance and integrity of the company’s 
website uk legislation governing the preparation 
and dissemination of financial statements may 
differ from legislation in other jurisdictions
each of the directors whose names and functions 
are listed on pages 32 and 33 confirms that to  
the 	 best 	 of 	 his 	 or 	 her 	 knowledge
•	 	 the 	 gr oup 	 financial 	 statements 	 which 	 have	
been prepared in accordance with ifrss as 
adopted by the eu give a true and fair view 
of the assets liabilities financial position and 
profit of the group and
•  the business review contained in the 
directors’ report includes a fair review of the 
development and performance of the business 
and the position of the group together 
with a description of the principal risks and 
uncertainties that it faces
disclosure of information to auditors
so far as each director is aware there is no 
relevant audit information of which the company’s 
auditors are unaware and he or she has taken all 
the steps that he or she ought to have taken as a 
director in order to make himself or herself aware 
of any relevant audit information and to establish 
that the company’s auditors are aware of that 
information
the directors’ report on pages 1 to 59 of this 
annual report was approved by the directors on  
26 may 2011
on behalf of the board
robert 	 gibber 
company secretary
26 may 2011
the directors are responsible for preparing the 
annual report the directors’ remuneration report 
and the group and the parent company financial 
statements in accordance with applicable law  
and regulations
company law requires the directors to prepare 
financial statements for each financial year 
under that law the directors have prepared the 
group financial statements in accordance with 
international financial reporting standards ifrss 
as adopted by the eu and the parent company 
financial statements in accordance with applicable 
law and uk accounting standards uk generally 
accepted accounting practice under company 
law the directors must not approve the financial 
statements unless they are satisfied that they give 
a true and fair view of the state of affairs of the 
company and the group and of the profit or  
loss of the group for that period
in preparing these financial statements  
the 	 dir ectors 	 ar e 	 r equir ed 	 to
•	 	 select 	 suitable 	 accounting 	 policies 	 and 	 then	
apply them consistently
•	 	 make 	 judgements 	 and 	 accounting 	 estimates	 
that are reasonable and prudent
•	 	 	 state 	 whether 	 ifrss 	 as 	 adopted 	 by 	 the 	 eu	
and with regard to the parent company 
financial statements applicable uk accounting 
standards have been followed subject to any 
material departures disclosed and explained 
in the group and parent company financial 
statements and
•	 	 pr epar e 	 the 	 gr oup 	 and 	 par ent 	 company	 
financial statements on the going concern basis 
unless it is inappropriate to presume that the 
group will continue in business 
the directors are responsible for keeping adequate 
accounting records that are sufficient to show and 
explain the transactions of the company and the 
group and disclose with reasonable accuracy at 
any time the financial position of the company 
and the group and enable them to ensure that the 
financial statements and the directors’ remuneration 
report comply with the companies act 2006 and 
as regards the group financial statements article 4 
of the ias regulation 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 60   tate  lyle annual report 2011
we have audited the group financial statements of tate  lyle plc 
for the year ended 31 march 2011 which comprise the consolidated 
income statement the consolidated statement of comprehensive 
income the consolidated statement of financial position consolidated 
statement of cash flows the consolidated statement of changes 
in shareholders’ equity and the related notes to the consolidated 
financial statements the financial reporting framework that has been 
applied in their preparation is applicable law and international financial 
reporting standards ifrss as adopted by the european union 
respective responsibilities of directors and auditors 
as explained more fully in the directors’ statement of responsibilities 
on page 59 the directors are responsible for the preparation of the 
group financial statements and for being satisfied that they give a true 
and fair view our responsibility is to audit and express an opinion on 
the group financial statements in accordance with applicable law and 
international standards on auditing uk and ireland those standards 
require us to comply with the auditing practices board’s ethical 
standards for auditors 
this report including the opinions has been prepared for and only for 
the company’s members as a body in accordance with chapter 3 of 
part 16 of the companies act 2006 and for no other purpose we do 
not in giving these opinions 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
scope of the audit of the financial statements 
an audit involves obtaining evidence about the amounts and 
disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material 
misstatement whether caused by fraud or error this includes an 
assessment of whether the accounting policies are appropriate to 
the group’s circumstances and have been consistently applied and 
adequately disclosed the reasonableness of significant accounting 
estimates made by the directors and the overall presentation of the 
financial statements in addition we read all the financial and non
financial information in the annual report 2011 to identify material 
inconsistencies with the audited financial statements if we become 
aware of any apparent material misstatements or inconsistencies  
we consider the implications for our report
opinion on financial statements 
in our opinion the group financial statements 
n  give a true and fair view of the state of the group’s affairs as at  
31 march 2011 and of its profit and cash flows for the year  
then ended 
n  have been properly prepared in accordance with ifrss as 
adopted by the european union and 
n  have been prepared in accordance with the requirements of the 
companies act 2006 and article 4 of the las regulation 
opinion on other matters prescribed by the  
companies act 2006 
in our opinion
n  the information given in the annual report 2011 for the financial 
year for which the group financial statements are prepared is 
consistent with the group financial statements 
matters on which we are required to report by exception 
we have nothing to report in respect of the following 
under the companies act 2006 we are required to report to you if  
in our opinion 
n  certain disclosures of directors’ remuneration specified by law  
are not made or 
n  we have not received all the information and explanations  
we require for our audit
under the listing rules we are required to review 
n  the directors’ statement set out on page 25 in relation to going 
concern 
n  the part of the corporate governance statement relating to the 
company’s compliance with the nine provisions of the june 2008 
combined code specified for our review and
n  certain elements of the report to shareholders by the board on 
directors’ remuneration 
other matter 
we have reported separately on the parent company financial 
statements of tate  lyle plc for the year ended 31 march 2011  
and on the information in the directors’ remuneration report that  
is described as having been audited
paul cragg senior statutory auditor
for and on behalf of pricewaterhousecoopers llp
chartered accountants and statutory auditors 
london  
26 may 2011
note 
a   the maintenance and integrity of the tate  lyle plc website and any 
other electronic media used to present the financial statements is the 
responsibility of the directors the work carried out by the auditors does  
not involve consideration of these matters and accordingly the auditors 
accept no responsibility for any changes that may have occurred to the 
financial statements since they were initially presented on the website  
or any other electronic media
b  legislation in the united kingdom governing the preparation and 
dissemination of financial statements may differ from legislation in  
other jurisdictions
independent auditors’ report to the members of tate  lyle plc tate  lyle annual report 2011   61
consolidated income statement
year to 31 march
notes
2011
£m
2010
£m
continuing operations
sales 4 5 2 720 2 533
operating profitloss 4 6 303 44
finance income 10 3 2
finance expense 10 61 74
profitloss before tax 245 116
income tax expensecredit 11 49 95
profitloss for the year from continuing operations 196 21
lossprofit for the year from discontinued operations 12 29 40
profit for the year 167 19
profit for the year attributable to
– equity holders of the company 163 15
– noncontrolling interests 4 4
  167 19
pence pence
earnings per share attributable to the equity holders of the company  
from continuing and discontinued operations
 
13
– basic 353 33
– diluted 347 33
earningsloss per share attributable to the equity holders of the company  
from continuing operations
 
13
– basic 426 47
– diluted 419 47
dividends per share 14
– interim paid 68 68
– final proposed 169 161
  237 229
analysis of adjusted profit before tax from continuing operations
£m £m
profitloss before tax 245 116
add back
– exceptional items 7 5 298
– amortisation of acquired intangible assets 15 13 14
adjusted profit before tax exceptional items and amortisation of acquired intangible assets 263 196
the notes on pages 66 to 111 form part of these group financial statements
shareholder information
business review governance financial statements 62   tate  lyle annual report 2011
consolidated statement of comprehensive income
year to 31 march
notes
2011
£m
2010
£m
profit for the year 167 19
actuarial gainslosses in postemployment benefit plans 30 58 104
net fair value gains on cash flow hedges 9 13
cash flow hedges reclassified and reported in the income statement during the year 9 11
valuation gainlosses on availableforsale financial assets 18 1 10
net exchange differences 37 10
items recycled to the income statement on disposal 23 –
deferred tax relating to the above components 11 – 25
other comprehensive incomeexpense for the year net of tax 17 75
total comprehensive incomeexpense for the year 184 56
attributable to
– equity holders of the company 181 59
– noncontrolling interests 3 3
  184 56
the notes on pages 66 to 111 form part of these group financial statements tate  lyle annual report 2011   63
consolidated statement of financial position
31 march
notes
2011
£m
2010
£m
assets
noncurrent assets
goodwill and other intangible assets 15 320 340
property plant and equipment 16 855 1 208
investments in associates 17 5 7
availableforsale financial assets 18 19 14
derivative financial instruments 20 48 49
deferred tax assets 29 74 143
trade and other receivables 23 1 2
retirement benefit surplus 30 103 16
1 425 1 779
current assets
inventories 22 454 409
trade and other receivables 23 291 424
current tax assets 25 4
derivative financial instruments 20 135 150
cash and cash equivalents 33 654 504
1 559 1 491
assets held for sale 38 67 18
1 626 1 509
total assets 3 051 3 288
shareholders’ equity
capital and reserves attributable to the equity holders of the company 
share capital 24 117 115
share premium 24 406 405
capital redemption reserve 8 8
other reserves 25 175 220
retained earnings 244 79
950 827
noncontrolling interests 23 27
total shareholders’ equity 973 854
liabilities
noncurrent liabilities
trade and other payables 27 1 1
borrowings 28 887 1 119
derivative financial instruments 20 56 67
deferred tax liabilities 29 30 59
retirement benefit deficit 30 242 273
provisions for other liabilities and charges 31 21 37
1 237 1 556
current liabilities
trade and other payables 27 406 485
current tax liabilities 33 52
borrowings and bank overdrafts 28 227 190
derivative financial instruments 20 126 125
provisions for other liabilities and charges 31 44 26
836 878
liabilities held for sale 38 5 –
841 878
total liabilities 2 078 2 434
total shareholders’ equity and liabilities 3 051 3 288
the group financial statements were approved by the board of directors on 26 may 2011 and signed on its behalf by
javed ahmed tim lodge directors
the notes on pages 66 to 111 form part of these group financial statements
shareholder information
business review governance financial statements 64   tate  lyle annual report 2011
consolidated statement of cash flows
year to 31 march
notes
2011
£m
2010
£m
cash flows from operating activities
profitloss before tax from continuing operations 245 116
adjustments for  
– depreciation of property plant and equipment 6 91 99
– exceptional items 7 5 298
– amortisation of intangible assets 6 18 20
– sharebased payments charge 9 9 4
– finance income 10 3 2
– finance expense 10 61 74
changes in working capital 32 101 186
cash generated from continuing operations 325 563
interest paid 49 61
income tax paid 31 30
cash used ingenerated from discontinued operations 12 100 115
net cash generated from operating activities 145 587
cash flows from investing activities
proceeds on disposal of property plant and equipment 37
–
interest received 3 2
purchase of availableforsale financial assets 18 5 3
acquisitions of subsidiaries net of cash acquired 37 – 21
disposal of businesses net of cash disposed 37 280 26
purchase of property plant and equipment 58 60
purchase of intangible assets and other noncurrent assets 12 5
net cash used in investing activities in discontinued operations 12 5 18
net cash generated fromused in investing activities 240 131
cash flows from financing activities
proceeds from issuance of ordinary shares 2 2
repurchase of ordinary shares – 6
cash inflow from additional borrowings – 198
cash outflow from repayment of borrowings 129 417
cash outflow from repayment of capital element of finance leases 2 3
dividends paid to the company’s equity holders 14 70 103
net cash used in financing activities in discontinued operations 12 18 47
net cash used in financing activities 217 376
net increase in cash and cash equivalents 34 168 80
cash and cash equivalents
balance at beginning of year 504 434
effect of changes in foreign exchange rates 18 10
net increase in cash and cash equivalents 168 80
balance at end of year 33 654 504
the notes on pages 66 to 111 form part of these group financial statements tate  lyle annual report 2011   65
consolidated statement of changes in shareholders’ equity
share capital 
and share 
premium 
note 24
£m
capital 
redemption 
reserve
£m
other  
reserves 
 note 25
£m
retained 
earnings
£m
attributable 
to the equity 
holders of the 
company
£m 
non
controlling 
interests
£m
total equity
£m
balance at 31 march 2009 519 8 219 241 987 26 1 013
other comprehensive incomeexpense  
  for the year – – 1 75 74 1 75
profit for the year – – – 15 15 4 19
sharebased payments charge  
  including tax – – – 6 6 – 6
share purchase – – – 6 6 – 6
proceeds from shares issued 1 – – 1 2 – 2
dividends paid – – – 105 105 2 107
scrip issue of shares for dividend – – – 2 2 – 2
balance at 31 march 2010 520 8 220 79 827 27 854
other comprehensive expenseincome  
  for the year – – 45 63 18 1 17
profit for the year – – – 163 163 4 167
sharebased payments charge  
  including tax – – – 10 10 – 10
proceeds from shares issued 1 – – 1 2 – 2
dividends paid – – – 105 105 2 107
scrip issue of shares for dividend 2 – – 33 35 – 35
noncontrolling interests disposed – – – – – 5 5
balance at 31 march 2011 523 8 175 244 950 23 973
retained earnings at 31 march 2011 include a deduction for own shares held by the esop trust of £11 million 2010 – £12 million 
all but 001 pence per share of the dividends arising on these shares have been waived by the trust
the notes on pages 66 to 111 form part of these group financial statements
shareholder information
business review governance financial statements 66   tate  lyle annual report 2011
notes to the consolidated financial statements
1 presentation of financial statements
general information
the principal activity of tate  lyle plc is the global provision of 
ingredients and solutions to the food beverage and other industries  
it operates from more than 30 production facilities around the world 
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 on the basis 
of international financial reporting standards ifrss adopted by 
the european union and interpretations issued by the international 
financial reporting interpretations committee ifric and have been 
prepared in accordance with the listing rules of the uk financial 
services authority and the companies act 2006 as applicable to 
companies reporting under ifrs 
these consolidated financial statements have been prepared in 
accordance with the accounting policies set out in note 2 and under 
the historical cost convention modified to include revaluation of certain 
financial instruments and commodities share options and pension 
assets and liabilities
these consolidated financial statements are presented in pounds 
sterling which is the group’s functional and presentational 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 financial information for the year ended 31 march 2010 is  
derived from the statutory financial statements for that year except 
certain comparative information has been represented to conform 
with the current year presentation
following a change in the organisational structure the segments 
disclosed under the provisions of ifrs 8 operating segments have 
been changed to speciality food ingredients bulk ingredients sugars 
and central costs the comparative segmental information for the  
year ended 31 march 2010 has been reclassified 
following the disposal of the eu sugar refining operations 
‘eu sugars’ to american sugar refining inc the sale of molasses 
to wr barnett ltd and the announcement of the proposed sale 
of vietnam sugar and commitment to sell the israel operations the 
sugars segment has been reclassified as discontinued operations in 
the current and comparative periods in the current year the assets 
and liabilities of vietnam sugar and the sugar operations in israel have 
been included within assets and liabilities held for sale
there is no overall effect on the group’s comparative income 
statement net assets or overall cash flows from continuing operations 
from these representations
use of adjusted measures
tate  lyle presents adjusted profit before tax and adjusted earnings 
per share information these measures are used by tate  lyle 
for internal performance analysis and incentive compensation 
arrangements for employees the terms ‘adjusted’ and ‘exceptional 
items’ are not defined terms under ifrs and may therefore not 
be comparable with similarly titled measures reported by other 
companies they are not intended to be a substitute for or superior 
to gaap measurements of profit the term ‘adjusted’ refers to the 
relevant measure being reported excluding exceptional items and the 
amortisation of intangible assets arising on acquisition of businesses 
a reconciliation of statutory to adjusted information is provided  
in note 43
new ifrs standards and interpretations adopted
from 1 april 2010 the group has adopted the following new and 
amended ifrss and ifric interpretations
– ifrs 1 revised first time adoption
− ifric 17 distribution of noncash assets to owners
−  amendment to ias 27 revised consolidated and separate  
financial statements
− ifrs 3 revised business combinations
−  ifrs 2 sharebased payment – group cashsettled sharebased 
payment transactions
−  amendment to ias 32 financial instruments presentation  
on classification of rights issues
−  amendment to ias 39 financial instruments recognition and 
measurement – eligible hedged items 
− ifric 18 transfer of assets from customers
− ifric 16 hedges of a net investment in a foreign operation
the revised ifrs 3 business combinations includes the immediate 
expensing of acquisitionrelated costs rather than inclusion in goodwill 
and the recognition and measurement at fair value of contingent 
consideration at acquisition date with subsequent changes to income 
the adoption of these revised standards has not had a material 
impact on the group’s profit for the year and equity 
new ifrs standards and interpretations not adopted 
the following standards amendments and interpretations are not  
yet effective and have not been adopted early by the group
− ifrs 9 financial instruments classification and measurement 
− amendment to ias 24 related party disclosures
−  amendments to ifric 14 ias 19 prepayments of a minimum  
funding requirement
− ifric 19 extinguishing financial liabilities with equity instruments 
– ifrs annual improvements 2010
−  amendment to ifrs 7 financial instruments disclosures  
on derecognition 
−  amendments to ifrs 1 first time adoption – financial  
instrument disclosures
 
the adoption of these standards amendments and interpretations is 
not expected to have a material impact on the group’s profit for those 
years or equity the adoptions may affect disclosures in the group’s 
financial statements
in november 2009 the iasb issued ifrs 9 financial instruments 
classification and measurement which altered the classification 
and measurement of financial instruments under the new standard 
only two possible classifications arise rather than the four existing 
classifications currently available under ias 39 and will result in all 
financial assets being valued at amortised cost or fair value through 
profit and loss in october 2010 the iasb issued additions to ifrs 
9 relating to financial liabilities the main change in the additions is 
that in cases where the fair value option is taken for financial liabilities 
the part of a fair value change due to an entity’s own credit risk is 
recorded in other comprehensive income rather than the income 
statement unless this creates an accounting mismatch the standard 
is not mandatory before 2013 yearends and is yet to be endorsed  
by the european union the adoption of this standard may impact  
the group’s profit equity and disclosures in the group’s  
financial statements 
on 12 may 2011 the iasb issued ifrs 10 consolidated financial 
statements ifrs 11 joint arrangements and ifrs 12 disclosure of 
interests in other entities which are all effective for accounting periods 
beginning on or after 1 january 2013 the group is still continuing 
to assess the impact of these standards but initial assessments 
suggest that while net profit and net assets will remain unchanged the 
presentation of the consolidated income statement and consolidated 
statement of financial position will change significantly as ifrs 11 
prohibits the proportional consolidation of joint arrangements 
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 112 to 117 tate  lyle annual report 2011   67
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 noncontrolling interest’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 transactions and noncontrolling interests
the group treats transactions with noncontrolling interests as 
transactions with equity owners of the group for purchases from  
noncontrolling interests the difference between any consideration 
paid and the relevant share acquired of the carrying value of net 
assets of the subsidiary is recorded in equity gains or losses on 
disposals to noncontrolling interests are also recorded in equity
c  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 however if a loss on the transaction provides 
evidence of a reduction in the net realisable value of current assets  
or an impairment loss the loss is recognised immediately
d  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 statement of financial position 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 unrealised gains on transactions 
between the group and its associates are eliminated to the extent 
of the group’s interest in the associate unrealised losses are also 
eliminated on the same basis unless the transaction provides  
evidence of an impairment of the asset transferred
foreign currency translation
a  functional and presentational 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 the group’s presentational 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 presentational 
currency are translated into the presentation currency as follows
i   assets and liabilities including goodwill and fair value adjustments 
for each statement of financial position presented are translated at 
the closing rate at the date of that statement of financial position
ii  income and expenses for each income statement including 
components of comprehensive income are translated at weighted 
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
on consolidation exchange differences arising from 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 these exchange 
differences comprise the exchange differences on all amounts 
deemed to be part of the net investment in the foreign operation 
which are recycled to the income statement when a disposal occurs
property plant and equipment
land and buildings mainly comprise manufacturing sites and 
administrative facilities
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 
statement of financial position 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 than  
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
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
shareholder information
business review governance financial statements 68   tate  lyle annual report 2011
notes to the consolidated financial statements
2 group accounting policies continued 
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 and depreciated over the shorter of the lease term 
and its useful life
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 in a business combination excluding 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
gains and losses on the disposal of a business component include 
the carrying amount of goodwill relating to the entity sold
goodwill is allocated to cashgenerating units for the purpose of 
impairment testing the allocation is made to those cashgenerating 
units or groups of cashgenerating units that are expected to benefit 
from the business combination in which the goodwill arose
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 which ranges from 5 to 15 years
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 which ranges from 5 to 15 years
d  other intangible assets
other intangible assets mainly include 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 ias 38 
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 at least annually for impairment in addition assets 
in the course of construction are not depreciated and are subject to 
annual impairment review 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 nonfinancial assets other than goodwill that suffered an 
impairment in previous periods are reviewed for possible reversal of 
the impairment at each reporting date 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 expected to 
benefit from the synergies of the business combinations further 
details are given in note 3
financial instruments
a availableforsale financial assets
equity instruments held by the group and designated as availablefor
sale are carried at fair value with movements in fair value recognised 
directly in equity where fair value cannot be reliably measured the 
assets are approximated at cost cumulative fair value gains or losses 
on an asset are recycled through the income statement when the 
asset is disposed or impaired a significant or prolonged decline in the 
fair value of the security below its cost is considered as an indicator 
that the securities are impaired impairments are recognised in the 
income statement
b loans and receivables
noncurrent and current receivables and loans granted are recognised 
initially at fair value and thereafter 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 where borrowings are designated as hedged items 
under fair value hedges they are subsequently remeasured for fair 
value changes in respect of the hedged risk with such changes 
recognised in the income statement otherwise 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 rate 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 preference shares which are mandatorily redeemable  
on a specific date are classified as liabilities the dividends on  
these preference shares are recognised in the income statement  
as interest expense
d commodity trading instruments
commodity instruments acquired for trading purposes are  
initially recognised at fair value on the date a derivative contract is 
entered into and are subsequently remeasured at their fair value  
movements in fair value are recognised in the income statement
e commodity and treasury hedging instruments
under ias 39 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 other comprehensive income  
until the period during which the hedged forecast transaction 
affects profit or loss at which point the cumulative gain or loss  
is recognised in operating profit offsetting the value of the  
hedged transaction
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 net 
finance expense 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  tate  lyle annual report 2011   69
2 group accounting policies continued 
hedge accounting is discontinued at the point when the hedging 
relationship 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 relationship fails to meet the ias 39 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 values
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
where no market prices are available the fair value of financial 
liabilities is calculated with reference to discounted expected  
future cash flows
inventories
inventories are stated at the lower of cost and net realisable value 
with the exception of certain items of merchandisable agricultural 
commodities which are stated at market value in line with regional 
industry accounting practices
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
trade receivables
noncurrent and current trade receivables are recognised initially at 
fair value and subsequently measured at amortised cost using the 
effective interest method less provision for impairment
cash and cash equivalents
cash and cash equivalents include cash in hand deposits held at call 
with banks and other shortterm highly liquid investments with original 
maturities of three months or less and for the purposes of the cash 
flow statement only bank overdrafts are considered to be borrowings 
in nature
share capital
ordinary shares are classified as equity incremental costs directly 
attributable to the issue of new shares 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  
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 and long term share incentive 
plans granted to employees under the group’s share option schemes 
the trustee of the esop trust purchases the company’s shares on 
the open market using loans made by the company or other loans 
guaranteed by the company 
trade payables
noncurrent and current trade payables are recognised initially at 
fair value and subsequently measured at amortised cost using the 
effective interest rate method less provision for impairment
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 the impact of unwinding 
any discount is taken to finance expense
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
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 except as noted below 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 taxable 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
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 primarily at the point of delivering to the 
customer and in exchange obtains the right to consideration
b  interest income
interest income is recognised on a timeproportion basis using  
the effective interest rate method
c  dividend income
dividend income is recognised when the right to receive payment  
is established
shareholder information
business review governance financial statements 70   tate  lyle annual report 2011
2 group accounting policies continued 
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 through trustee
administered 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 statement of financial position in 
respect of defined benefit pension plans are the net deficit and the 
net surplus of 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 charged or credited to equity 
and past service costs the defined benefit obligation is calculated 
annually by independent qualified 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 
any gains or losses from settlement or curtailment is recognised in  
the income statement when the curtailment or settlement occurs
actuarial gains and losses arising from experience adjustments and 
changes in actuarial assumptions are charged or credited to equity 
immediately through the statement of comprehensive income
where the actuarial valuation of a scheme demonstrates that the 
scheme is in surplus the recognised asset is limited to that for which 
the group expects to benefit in future by refunds or a reduction  
in contribution
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
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 group 
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
borrowing costs
borrowing costs directly arising from the purchase construction or 
production of an asset are capitalised as part of the cost of that asset
exceptional items
exceptional items comprise items of income and expense including 
tax items 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 see note 7 for further details
government grants
a government grant is recognised when there is reasonable assurance 
that any conditions attached to the grant will be satisfied and the 
grants will be received a government grant is recognised at its fair 
value and is accounted for as a deduction against the cost concerned 
or within other income over the periods necessary to match the grants 
with the related costs that they are intended to compensate
dividend distribution
final dividend distributions to the company’s equity holders are 
recognised as a liability in the group’s financial statements in the 
period in which the dividends are approved by the company’s 
shareholders while interim dividend distributions are recognised in the 
period in which the dividends are declared and paid where a scrip 
alternative is offered and taken the distribution is effected through  
an issue of bonus shares from the share premium account
segment reporting
ifrs 8 operating segments requires that entities identify and report 
the financial performance of these operating segments segment 
information is reported for those components for which separate 
financial information is available and which management uses 
internally for allocating resources and assessing performance in 
addition to receiving information relating to the operating performance 
of the business principally sales and adjusted operating performance 
the chief operating decision maker receives information on the 
segmental net working capital in order to assess the performance  
of the segments
following the change in the organisational structure announced in may 
2010 the group restructured its internal organisation into four distinct 
segments speciality food ingredients bulk ingredients sugars and 
central costs sugars was subsequently classified as discontinued 
management reporting has been realigned with this reorganisation 
and as a result the segment information set out below reflects this 
change comparative information for the year ended 31 march 2010 
has been reclassified 
discontinued operations and assets held for sale
business components that represent separate major lines of business 
or geographical areas of operations are recognised as discontinued 
if the operations have been disposed of or meet the criteria to be 
classified as held for sale under ifrs 5
assets and disposal groups are classified as held for sale if their 
carrying amount will be principally recovered through a sale 
transaction rather than through continuing use this condition is 
regarded as met only when the sale is highly probable expected to 
be completed within one year and the asset or disposal group is 
available for immediate sale in its present condition operations held 
for sale are held at the lower of their carrying amount on the date they 
are classified as held for sale and fair value less costs to sell
notes to the consolidated financial statements tate  lyle annual report 2011   71
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 that 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 estimates and judgements are set out below
impairment of assets
asset impairments have the potential to significantly impact operating 
profit 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 countryrelated risks the group’s 
weighted average cost of capital is reviewed on an annual basis
if the cash flow or discount rate assumptions were to change because 
of market conditions the level of impairment could be different and 
could result in the impairment of property plant and equipment being 
increased or reversed in part or in full at a future date
further details are set out in notes 15 and 16
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 us 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 statement of financial 
position the amount recorded is the difference between plan assets 
and liabilities at the balance sheet date the group only recognises 
a surplus to the extent it has an unconditional right to a refund or a 
reduction in future contributions 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 if the 
mortality rates assumption changed a one year increase to longevity 
at age 65 would increase the liability by £61 million the main financial 
assumption is the real discount rate being the excess of the discount 
rate over the rate of inflation if this assumption increased by 01 the 
gross plan liabilities would decrease 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 
increase in the assumption of the real discount rate would increase  
the net finance expense by approximately £02 million
full details of these assumptions which are based on advice from  
the group’s actuaries are set out in note 30
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 and other restructuring costs
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
further details are set out in note 31
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 arise from asset impairments and 
retirement benefit obligations 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
further details are set out in notes 11 and 29
shareholder information
business review governance financial statements 72   tate  lyle annual report 2011
notes to the consolidated financial statements
4 segment information
following the change in the organisational structure announced in may 2010 the group restructured its internal organisation into four distinct 
segments speciality food ingredients bulk ingredients sugars and central costs sugars was subsequently classified as discontinued 
management reporting has been realigned with this reorganisation and as a result the segment information set out below reflects this change 
comparative information for the year ended 31 march 2010 has been reclassified 
central costs which include head office treasury and reinsurance activities do not meet the operating segment definition under ifrs 8 but have 
been disclosed as a reportable segment in the tables below to be consistent with internal management reporting
discontinued operations comprise previously disclosed international sugar trading and eastern sugar together with the sugars division note 12
the segment results for the year to 31 march 2011 are as follows
continuing operations
notes
speciality 
food  
ingredients
£m
bulk  
ingredients
£m
central  
costs
£m
total
£m
discontinued 
operations 
note 12
£m
total from 
continuing and 
discontinued 
operations
£m
sales
total sales 916 1 987 – 2 903 590 3 493
intersegment sales 111 72 – 183 – 183
external sales note a 805 1 915 – 2 720 590 3 310
operating profitloss
before exceptional items and 
   amortisation of acquired 
intangible assets 206 157 42 321 2 319
exceptional items 7 7 9 7 5 43 48
amortisation of acquired 
  intangible assets 15 13 – – 13 – 13
operating profitloss 186 166 49 303 45 258
net finance expense 58 – 58
profitloss before tax    245 45 200
segment assets note b 207 511 13 731 40 771
unallocated assets
– noncurrent assets 1 424
– current assets 856
total assets 3 051
segment liabilities note b 106 237 61 404 8 412
unallocated liabilities
– noncurrent liabilities 1 236
– current liabilities 430
total liabilities 2 078
other segment information
net working capital 101 274 48 327 32 359
capital investments note c 26 34 16 76 8 84
depreciation 34 55 2 91 9 100
amortisation of intangible assets 15 18 – – 18 – 18
impairment charges 2 – – 2 4 6
sharebased payments 9 – 1 8 9 – 9
a  there were no customers that contributed more than 10 of the group’s external sales from continuing operations for the year ended  
31 march 2011 
b  segment assets and liabilities relates to controllable working capital trade and other receivables inventories and trade and other payables as 
reported to the chief operating decision maker all other assets and liabilities are reported within segment information as unallocated as these 
are not reported to the chief operating decision maker at operations segment level
c  capital investments comprise capital expenditure on property plant and equipment intangible assets and investments these items include 
amounts arising on acquisition of businesses tate  lyle annual report 2011   73
4 segment information continued
the segment results for the year to 31 march 2010 are as follows
continuing operations
notes
speciality 
food
ingredients
£m
bulk  
ingredients
£m
central  
costs
£m
total
£m
discontinued 
operations  
note 12
£m
total from 
continuing and 
discontinued 
operations
£m
sales
total sales 869 1 772 – 2 641 1 074 3 715
intersegment sales 81 27 – 108 – 108
external sales note a 788 1 745 – 2 533 1 074 3 607
operating profitloss
before exceptional items and 
  amortisation of acquired  
  intangible assets 163 136 31 268 28 296
exceptional items 7 66 237 5 298 22 276
amortisation of acquired 
  intangible assets 15 14 – – 14 – 14
operating profitloss 83 101 26 44 50 6
net finance expenseincome 72 1 71
lossprofit before tax    116 51 65
segment assets note b 216 386 11 613 222 835
unallocated assets
– noncurrent assets 1 777
– current assets 676
total assets 3 288
segment liabilities note b 90 198 37 325 161 486
unallocated liabilities
– noncurrent liabilities 1 555
– current liabilities 393
total liabilities 2 434
other segment information
net working capital 126 188 26 288 61 349
capital investments note c 25 40 5 70 22 92
depreciation 39 58 2 99 17 116
amortisation of intangible assets 15 18 2 – 20 – 20
impairment charges 2 217 – 219 16 235
sharebased payments 9 – – 4 4 1 5
a  two external customers contributed more than 10 of the group’s external sales from continuing operations for the year ended 31 march 
2010 the combined external sales for these customers were £553 million which have been recorded across all the reportable segments 
excluding central costs
b  segment assets and liabilities relates to controllable working capital trade and other receivables inventories and trade and other payables as 
reported to the chief operating decision maker all other assets and liabilities are reported within segment information as unallocated as these 
are not reported to the chief operating decision maker at operations segment level
c   capital investments comprise capital expenditure on property plant and equipment intangible assets and investments these items include 
amounts arising on acquisition of businesses
the united kingdom is the home country of the parent sales from continuing operations and noncurrent assets other than financial instruments 
deferred tax assets and retirement benefit assets in the principal territories are as follows
external sales by destination
year to 31 march
external sales by origin
year to 31 march
location of noncurrent assets
year to 31 march
2011
£m
2010
£m
2011
£m
2010
£m
2011
£m
2010
£m
united kingdom 65 43 16 19 38 248
united states 1 746 1 652 1 948 1 841 660 735
other european countries 432 426 451 425 327 372
rest of world 477 412 305 248 156 202
total 2 720 2 533 2 720 2 533 1 181 1 557
shareholder information
business review governance financial statements 74   tate  lyle annual report 2011
notes to the consolidated financial statements
5 sales from continuing operations
analysis of sales by category
year to 31 march
notes
2011
£m
2010
£m
sales of goods excluding share of sales of joint ventures 2 317 2 210
share of sales of joint ventures 17 403 323
total 2 720 2 533
6 operating profitloss
continuing operations
analysis by nature
year to 31 march
notes
2011
£m
2010
£m
external sales 2 720 2 533
staff costs 9 247 213
inventories
– cost of inventories recognised as an expense included in cost of sales 1 400 1 241
– fair value loss on derivatives held for trading included in cost of sales 8 5
depreciation of property plant and equipment
– owned assets 16 90 97
– leased assets 16 1 2
exceptional items 7 5 298
amortisation of intangible assets
– intangible assets arising on acquisition of businesses 15 13 14
– other intangible assets 15 5 6
operating lease rentals
– plant and machinery 23 24
research and development expenditure 25 26
impairment of trade receivables 23 1 3
reversal of impairment of trade receivables 23 – 1
impairment of property plant and equipment 2 –
loss on disposal of property plant and equipment 1 –
government grant income – 3
ineffectiveness on derivative financial instruments
– ineffectiveness loss on derivatives designated as cash flow hedges 20 – 3
– ineffectiveness gain on derivatives designated as net investment hedges 20 – 1
other operating expenses 596 650
total 2 417 2 577
operating profitloss from continuing operations 303 44
discontinued operations
analysis by nature
year to 31 march
notes
2011
£m
2010
£m
external sales 590 1 074
staff costs 9 28 49
inventories
– cost of inventories recognised as an expense included in cost of sales 464 841
depreciation of property plant and equipment
– owned assets 16 9 17
government grant income including transitional aid – 17
exceptional items 7 43 22
impairment of property plant and equipment 4 –
other operating expenses 87 156
total 635 1 024
operating lossprofit from discontinued operations 12 45 50 tate  lyle annual report 2011   75
7 exceptional items
exceptional items are as follows
year to 31 march
2011
£m
2010
£m
continuing operations
gain on disposal net of predisposal costs – fort dodge note a 10 –
impairment charges – fort dodge note b – 217
business transformation costs note c 15 3
closure and restructuring costs note d – 55
uk group pension scheme changes note e –  5 
writedown of assets note f – 28
total 5 298
discontinued operations
loss on disposal – eu sugars note g 55 –
gain on disposal – molasses note h 12 –
uk group pension scheme changes note e – 37 
impairment charges note b – 15
total 43 22 
the comparative figures for 2010 have been restated to reflect the disposal of eu sugars and molasses which are presented as discontinued 
operations in both years
a  the group has recorded a net exceptional gain of £10 million in respect of the mothballed ethanol facility at fort dodge iowa on 30 march 
2011 the facility was sold for cash consideration of £36 million resulting in a gain on disposal of £15 million an exceptional charge of  
£25 million had previously been booked early in the year in respect of onerous contracts relating to future obligations of the plant as a result 
of the disposal £20 million of the resultant provision was no longer required and was reversed this exceptional gain is reported in the bulk 
ingredients segment
b  in the year ended 31 march 2010 following a detailed analysis of end markets in light of costs of around £70 million to complete and 
commission the plant in fort dodge iowa and factoring in the risks associated with future returns from operating the plant the group 
concluded that the plant was highly unlikely to be completed or commissioned in the foreseeable future as a result the facility was mothballed 
and an impairment charge of £217 million recognised of the £217 million charge £209 million related to assets previously held in assets under 
construction and £8 million related to prepayments this exceptional item was reported in the bulk ingredients segment
  in the year ended 31 march 2010 the group recognised an impairment charge of £15 million at its sugar refining business in israel comprising 
a full writedown of the property plant and equipment £11 million and an inventory impairment £4 million this impairment charge reflected 
anticipated future decline in the commercial prospects of israel which is now reported within discontinued operations 
c   the group has recognised an exceptional charge of £15 million in relation to business transformation costs the group incurred £6 million 
of charges in relation to the implementation of a common global isit platform £4 million in relation to the relocation of employees and 
restructuring associated with the new commercial and food innovation centre in chicago illinois and £5 million 2010 – £3 million of closure 
and other restructuring costs relating to the food systems business these costs are reported in the bulk ingredients £1 million speciality 
food ingredients £7 million and the central costs £7 million segments
d  in the year ended 31 march 2010 the group recognised an exceptional charge in relation to the decision to mothball the sucralose 
manufacturing facility in mcintosh alabama the charge totalled £55 million and covered costs connected with redundancy cleanup  
activities and ongoing fixed costs and included provision for costs to final closure the exceptional item was reported in the speciality food 
ingredients segment
e  in the year ended 31 march 2010 the group recognised an exceptional gain of £42 million in relation to changes announced to the group 
pension scheme in the united kingdom of the total gain £32 million related to negative past service costs following the removal of the 
discretionary early retirement benefit from november 2009 and £10 million related to a curtailment gain as a result of the closure of the scheme 
to future benefit accrual for employee members from 6 april 2011 this exceptional item related to the central costs £5 million and sugars  
£37 million segments
f  in the year ended 31 march 2010 following a review of its portfolio of research and development projects the group wrote off £28 million in 
relation to assets from which it does not expect to receive a commercial benefit of the £28 million £20 million had previously been reported 
within property plant and equipment £6 million within intangible assets and £2 million within prepayments these assets related to operations 
reported in both the bulk ingredients £20 million and speciality food ingredients £8 million segments
g  the group recorded a loss of £55 million in relation to the disposal of eu sugars further details are set out in note 37
h  the group recorded a gain of £12 million in relation to the disposal of molasses further details are set out in note 37
the tax impact on continuing net exceptional items is £10 million charge 2010 – £117 million credit the tax impact on the discontinued net 
exceptional items is a £19 million credit 2010 – £5 million charge tax credits on exceptional costs are only recognised to the extent that losses 
incurred will result in tax recoverable in the future in addition there has been an exceptional tax credit of £8 million in respect of the recognition  
of a deferred tax asset on unrealised profit in inventory following the restructuring of the business organisation 
there was an exceptional tax credit of £15 million in the year ended 31 march 2010 in respect of the release of various tax provisions following 
settlement of outstanding issues around the group
shareholder information
business review governance financial statements 76   tate  lyle annual report 2011
notes to the consolidated financial statements
8 auditors’ remuneration
during the year the group including its overseas subsidiaries obtained the following services from the company’s auditors as detailed below
year to 31 march
2011
£m
2010
£m
fees payable to the company’s auditors for the audit of the parent company and consolidated  
  financial statements
 
06
 
06
fees payable to the company’s auditors and its associates for other services
– the audit of the company’s subsidiaries pursuant to legislation 11 15
total audit fees 17 21
other services pursuant to legislation 01 01
other services relating to taxation 01 –
all other services 08 02
total 27 24
in addition to the above fees totalling £01 million 2010 – £01 million were paid to the company’s auditors in respect of the audit of group 
pension schemes
included within fees payable to the company’s auditors and its associates is £01 million 2010 – £03 million and within all other services  
£06 million 2010 – £nil relating to discontinued operations including the costs of vendor due diligence in respect of the disposal of molasses
9 staff costs
staff costs for the group during the year were as follows
year to 31 march 2011 year to 31 march 2010
notes
continuing 
operations  
£m
discontinued 
operations 
£m
continuing 
operations 
£m
discontinued 
operations 
£m
wages and salaries 206 26 178 43
social security costs 19 1 21 2
other pension costs
– defined benefit schemes 30 8 1 7 2
– defined contribution schemes 2 – 1 1
– retirement healthcare benefits 30 3 – 2 –
sharebased payments 26 9 – 4 1
total 247 28 213 49
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 below as required by the companies act 2006 this includes parttime employees
year to 31 march
by business segment
2011 2010
speciality food ingredients 1 631 1 730
bulk ingredients 2 382 2 215
central 293 280
total 4 306 4 225
in addition the average number of people employed relating to discontinued operations was 854 2010 – 1394
the number of people employed by the group at 31 march 2011 was 4416 2010 – 5666 included in these numbers are 305 2010 – 1505 
employees relating to discontinued operations
key management compensation
year to 31 march
2011
£m
2010
£m
salaries and shortterm employee benefits 7 5
postemployment benefits 1 1
sharebased payments 5 2
share option gains – 1
total 13 9
key management is represented by the group executive committee and the company’s directors remuneration details of the company’s 
directors are given in the directors’ remuneration report on pages 44 to 56 members of the group executive committee are given on page 34
the aggregate emoluments of directors in respect of qualifying services to the company were £4 million 2010 – £4 million tate  lyle annual report 2011   77
10 finance income and finance expense
year to 31 march
continuing notes
2011
£m
2010
£m
finance income
interest receivable 3 2
total finance income 3 2
finance expense
interest payable on bank and other borrowings 45 54
net finance expense arising on defined benefit retirement schemes
– interest cost 30 76 76
– expected return on plan assets 30 72 57
finance lease charges 1 1
unwinding of discounts in provisions 31 2 –
fair value gainslosses on interestrelated derivative financial instruments
– interest rate swaps – fair value hedges 7 2
– derivatives not designated as hedges 3 1
fair value adjustment of borrowings attributable to interest rate risk 7 3
recycle of cash flow hedge reserve in respect of borrowings repaid 6 –
total finance expense 61 74
net finance expense 58 72
finance expense is shown net of borrowing costs capitalised into the cost of assets note 16 of £nil 2010 – £2 million at a capitalisation  
rate of 50
interest payable on other borrowings includes £02 million 2010 – £02 million of dividends in respect of the group’s 65 cumulative  
preference shares 
discontinued
included within the loss for the year in relation to discontinued operations note 12 is net finance income of £nil 2010 – £1 million
11 income tax expense
analysis of charge for the year
year to 31 march
continuing
2011
£m
2010
£m
current tax
in respect of the current year
– uk – 1
– overseas 3 33
adjustments in respect of previous years 10 2
exceptional tax credit – 15
7 17
deferred tax
– deferred tax chargecredit 64 112
– exceptional tax credit 8 –
income tax expensecredit 49 95
the income tax charge relating to continuing operations in the year to 31 march 2011 of £49 million 2010 – credit of £95 million includes a charge  
of £10 million in respect of pretax exceptional items 2010 – £117 million credit
included within current tax is a £10 million credit 2010 – £2 million principally relating to the settlement of prior year tax obligations in a number  
of jurisdictions
the exceptional tax credit of £8 million represents the recognition of a deferred tax asset on unrealised profit in inventory following the restructuring 
of the group £15 million in 2010 represented releases of various tax provisions following settlement of outstanding issues around the group
the effective tax rate for the year calculated on the basis of the total income tax charge relating to continuing operations as a proportion of profit 
before tax is 197 2010 – income tax credit on loss before tax of 819 this compares with the standard rate of corporation tax in the  
uk of 28 2010 – 28
the standard rate of corporation tax in the united kingdom will reduce from 28 to 26 from 1 april 2011
discontinued
the income tax credit in respect of discontinued operations note 12 in the year to 31 march 2011 is £16 million 2010 – £11 million expense
shareholder information
business review governance financial statements 78   tate  lyle annual report 2011
notes to the consolidated financial statements
11 income tax expense continued
year to 31 march
continuing
2011
£m
2010
£m
profitloss before tax 245 116
corporation tax chargecredit thereon at 28 2010 – 28 69 32
adjusted for the effects of
– exceptional tax credit 8 15
– income not taxableexpenses not deductible for tax purposes 7 2
– losses not recognised 15 16
– adjustments to tax in respect of previous periods 10 –
– different tax rates applied on overseas earnings 24 62
total 49 95
the effective tax rate relating to continuing operations on profit before exceptional items amortisation and exceptional tax items is 185  
2010 – 208
tax chargecredit relating to components of other comprehensive income
year to 31 march
notes
2011
£m
2010
£m
retirement benefit obligations 19 29
cash flow hedges 5 4
tax losses 22 –
other 2 –
tax credit relating to components of other comprehensive income – 25
current tax – –
deferred tax 29 – 25
tax on items recognised directly in equity
year to 31 march
2011 
£m
2010
£m
deferred tax credit on sharebased payments 1 1
total 1 1
12 discontinued operations
on 1 july 2010 the group announced its intention to sell all the businesses within the sugars segment accordingly the results of these sugars 
businesses are presented as discontinued operations for the year ended 31 march 2011 and 31 march 2010 on 30 september 2010 the  
group completed the disposal of eu sugars to american sugar refining inc on 3 december 2010 the group completed the disposal of 
molasses to wr barnett ltd on 20 april 2011 the group announced that it had entered into a conditional contract to dispose of vietnam  
sugar to th milk food joint stock company for cash consideration of approximately £33 million together with the group’s proportionate share  
of cash and working capital the results of the israel and vietnam sugar are presented within the other category for both periods
year to 31 march 2011
notes
eu 
sugars 
£m
molasses 
£m
international 
sugar  
trading 
£m 
other
£m
total
£m
sales 330 141 18 101 590
operating lossprofit before exceptional items 2 7 11 4 2
exceptional items 7 55 12 – – 43
operating lossprofit 57 19 11 4 45
finance income – – – 1 1
finance expense – – 1 – 1
lossprofit before tax 57 19 12 5 45
income tax creditexpense 22 1 – 5 16
lossprofit for the year 35 18 12 – 29
noncontrolling interests – 1 – 3 4
lossprofit attributable to equity holders of the  
company 35 17 12 3 33 tate  lyle annual report 2011   79
12 discontinued operations continued
year to 31 march 2010
eu 
sugars 
£m
molasses 
£m
international 
sugar  
trading 
£m 
other
£m
total
£m
sales 689 228 101 56 1 074
operating profitloss before exceptional items 14 14 3 3 28
exceptional items 37 – – 15 22
operating profitloss 51 14 3 12 50
finance income 2 1 – – 3
finance expense – – 2 – 2
profitloss before tax 53 15 5 12 51
income tax expensecredit 12 2 – 3 11
profitloss for the year 41 13 5 9 40
noncontrolling interests – 1 – 3 4
profitloss attributable to equity holders of the company 41 12 5 12 36
net cash flows from discontinued operations are as follows
year to 31 march 2011
eu 
sugars 
£m
molasses 
£m
international 
sugar  
trading 
£m 
other
£m
total
£m
net cash used ingenerated from operating activities 85 11 17 13 100
net cash used ingenerated from investing activities 5 1 – 1 5
net cash used in financing activities 16 1 – 1 18
year to 31 march 2010
eu 
sugars 
£m
molasses 
£m
international 
sugar  
trading 
£m 
other
£m
total
£m
net cash generated fromused in operating activities 110 28 25 2 115
net cash used ingenerated from investing activities 17 2 – 1 18
net cash used in financing activities 45 1 – 1 47
13 earnings per share
basic
basic earnings per share is calculated by dividing the profit 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 in the employee share ownership trust or in treasury
year to 31 march 2011 year to 31 march 2010
continuing 
operations 
discontinued 
operations total
continuing 
operations 
discontinued 
operations total
profitloss attributable to equity holders  
  of the company £million 196 33 163 21 36 15
weighted average number of ordinary  
  shares in issue millions 4615 4615 4615 4570 4570 4570
basic earningsloss per share 426p 73p 353p 47p 80p 33p
diluted
diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue to assume conversion of all potential 
dilutive ordinary shares potential dilutive ordinary shares arise from share options and the group’s long term share incentive plans for non
performance related share plans 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 for performance related share plans a calculation is performed to determine the satisfaction or otherwise of the forecast performance 
conditions at the end of the reporting period and the number of shares which would be issued based on the forecast status at the end of the  
reporting period
year to 31 march 2011 year to 31 march 2010
continuing 
operations 
discontinued 
operations total
continuing 
operations 
discontinued 
operations total
profitloss attributable to equity holders  
  of the company £million 196 33 163 21 36 15
weighted average number of diluted  
  shares in issue millions 4688 4688 4688 4570 4570 4570
diluted earningsloss per share 419p 72p 347p 47p 80p 33p
the adjustment for the dilutive effect of share options at 31 march 2011 was 73 million shares 2010 – nil
shareholder information
business review governance financial statements 80   tate  lyle annual report 2011
notes to the consolidated financial statements
13 earnings per share continued
adjusted earnings per share
adjusted earnings per share is stated excluding exceptional items and amortisation of acquired intangible assets as follows
year to 31 march
continuing operations
notes 2011 2010
profitloss attributable to equity holders of the company £million 196 21
adjustments £million
– exceptional items 7 5 298
– amortisation of acquired intangible assets 15 13 14
– tax effect of the above adjustments 8 121
– exceptional tax credit 11 8 15
adjusted profit £million 214 155
adjusted basic earnings per share from continuing operations 465p 339p
adjusted diluted earnings per share from continuing operations 457p 337p
for the purposes of the adjusted diluted earnings per share from continuing operations for the year ended 31 march 2010 the adjustment for the 
dilutive effect of share options was 23 million
14 dividends
year to 31 march
2011 2010
dividends paid on ordinary equity shares £million
– final paid relating to prior year 74 74
– interim paid relating to current year 31 31
total dividend paid 105 105
satisfied by
– cash £million 70 103
– scrip dividend £million note a 35 2
total 105 105
the total ordinary dividend is 237p 2010 – 229p made up as follows
– interim dividend paid 68p 68p
– final dividend proposed note b 169p 161p
total 237p 229p
a  during the year shareholders were given the option to receive the final dividend relating to the prior year and the interim dividend relating to 
the current year in the form of a scrip issue on 30 july 2010 and 7 january 2011 the group issued 5716625 shares and 1601272 shares 
respectively for scrip at a nominal value per share of 25p and a cash equivalent value of £35 million further detail is disclosed in note 24
b  the final dividend proposed for the year of £79 million 2010 – £74 million based on the number of shares outstanding as at 31 march 2011 
has not been recognised as a liability and will be paid subject to approval by shareholders at the company’s annual general meeting on  
5 august 2011 to shareholders who are on the register of members on 1 july 2011 tate  lyle annual report 2011   81
15 goodwill and other intangible assets
goodwill
£m
patents
£m
other  
acquired 
intangible  
assets
£m
total  
acquired 
intangibles
£m
other
intangible  
assets
£m
total
£m
cost
at 1 april 2010 230 33 127 390 32 422
additions at cost – – – – 12 12
transfer to assets held for sale – – 2 2 – 2
disposals and writeoffs 2 – – 2 3 5
exchange 6 – 4 10 1 11
at 31 march 2011 222 33 121 376 40 416
accumulated amortisation
and impairments
at 1 april 2010 – 23 40 63 19 82
amortisation charge – 2 11 13 5 18
disposals and writeoffs – – – – 2 2
exchange – – 2 2 – 2
at 31 march 2011 – 25 49 74 22 96
net book value at 31 march 2011 222 8 72 302 18 320
cost
at 1 april 2009 240 33 132 405 34 439
additions at cost – – 1 1 6 7
disposals and writeoffs – – – – 7 7
exchange 10 – 6 16 1 17
at 31 march 2010 230 33 127 390 32 422
accumulated amortisation
and impairments
at 1 april 2009 – 20 31 51 14 65
amortisation charge – 3 11 14 6 20
disposals and writeoffs – – – – 1 1
exchange – – 2 2 – 2
at 31 march 2010 – 23 40 63 19 82
net book value at 31 march 2010 230 10 87 327 13 340
goodwill
the carrying amounts of goodwill by segment are as follows
31 march
2011
£m
2010
£m
speciality food ingredients note a 80 81
bulk ingredients 1 1
allocated by geography
– united states note b 57 60
– europe note c 84 88
total 222 230
goodwill is tested for impairment annually and whenever there is an indication of impairment although cash flows have been identified for certain 
individual plants for the purposes of assessing the recoverable amounts the business is managed as a network in the united states and europe 
with a large amount of interdependency between plants with plants servicing both the speciality food ingredients and bulk ingredients segments 
as a result except as noted it is not possible to allocate goodwill to either the bulk ingredients or the speciality food ingredients segments
therefore goodwill is tested for impairment on a geographical basis except where goodwill can be allocated to an identifiable separate cgu 
unless otherwise stated impairment reviews are carried out in accordance with the methodology set out in notes 2 and 3 using cashflows based 
on the latest board approved management projections
a  goodwill within the speciality food ingredients segment includes £48 million 2010 – £48 million relating to the acquisition of gc hahn  co  
in june 2007 £18 million 2010 – £18 million relating to the acquisition of the cesalpinia foods group in december 2005 and £12 million  
2010 – £13 million relating to the acquisition of continental custom ingredients in january 2006 these businesses have been tested for 
impairment and a pretax discount rate of 11 2010 – 11 zero growth was assumed in perpetuity management has concluded that  
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 pretax discount rates of 11 2010 – 11 and zero growth assumed in perpetuity management has concluded 
that no impairment is required 
b  goodwill relating to the united states includes £57 million 2010 – £60 million relating to the staley acquisition in 1988 which is treated as one 
cgu for impairment testing purposes cash flows used were based on the latest approved plans for five years discounted using a pretax rate 
of 11 2010 – 11  zero growth was assumed in perpetuity management has concluded that no impairment is required
shareholder information
business review governance financial statements 82   tate  lyle annual report 2011
notes to the consolidated financial statements
15 goodwill and other intangible assets continued
c  goodwill relating to europe includes £84 million 2010 – £86 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 certain individual plants for the purposes of assessing the recoverable 
amounts of property plant and equipment as described in note 16 the business is treated as one cgu for impairment testing purposes  
the goodwill in the former amylum business has been tested for impairment using a pretax discount rate of 11 2010 – 11 zero growth 
was assumed in perpetuity management has concluded that no impairment is required
  management considers that no reasonably possible change in any of the assumptions would cause the recoverable amount of goodwill 
attached to the above cgus to fall below their carrying value
other intangible assets
included in other intangible assets are £2 million 2010 – £nil of assets under construction in relation to the implementation of a common global  
isit platform
16 property plant and equipment
land and 
buildings
£m
plant and 
machinery
£m
assets in the 
course of 
construction
£m
total
£m
cost 
at 1 april 2010 578 2 349 345 3 272
additions at cost 3 11 53 67
transfers on completion 3 50 53 –
transfer to assets held for sale 11 57 – 68
disposals and writeoffs 3 12 211 226
businesses sold 114 346 39 499
exchange and other movements 23 102 17 142
at 31 march 2011 433 1 893 78 2 404
accumulated depreciation and impairments
at 1 april 2010 292 1 564 208 2 064
depreciation charge 14 86 – 100
transfer to assets held for sale 4 42 – 46
impairment losses and writedowns 3 1 4 8
disposals and writeoffs – 12 195 207
businesses sold 72 206 4 282
exchange and other movements 12 63 13 88
at 31 march 2011 221 1 328 – 1 549
net book value at 31 march 2011 212 565 78 855
cost 
at 1 april 2009 591 2 394 345 3 330
additions at cost 2 12 68 82
transfers on completion 6 44 50 –
disposals and writeoffs 1 13 1 15
exchange and other movements 20 88 17 125
at 31 march 2010 578 2 349 345 3 272
accumulated depreciation and impairments
at 1 april 2009 288 1 493 1 1 782
depreciation charge 15 101 – 116
impairment losses and writedowns – 31 209 240
disposals and writeoffs 1 13 – 14
exchange and other movements 10 48 2 60
at 31 march 2010 292 1 564 208 2 064
net book value at 31 march 2010 286 785 137 1 208
additions to property plant and equipment includes capitalised borrowing costs of £nil 2010 – £2 million
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  tate  lyle annual report 2011   83
16 property plant and equipment continued
impairment reviews 
2011
the group’s european businesses are a major supplier of sweeteners which operates in competition to sugar throughout the continent following 
the disposal of five european starch plants in october 2007 the group carried out an impairment review in respect of the remaining cgus at 31 
march 2011 the recoverable amount was based on value in use calculated based on estimated future cash flows using management’s internal 
forecasts of future margins for the next five years the pretax discount rate used was 11 2010 – 11 and a zero growth rate assumed in 
perpetuity taking all factors into account management concluded that no further impairment or reversal of previous impairments was required 
during the year the group carried out an impairment review in respect of its dayton plant which manufactures citric acid in light of changes to the 
regulatory and competitive environment in which it operates the recoverable amount was based on value in use calculated based on estimated 
future cash flows using management’s internal forecasts of future margins for the next five years and applying a terminal value the pretax discount 
rate used was 11 taking all factors into account management concluded that no further impairment or reversal of previous impairments  
was required
2010 
in the year ended 31 march 2010 following a detailed analysis of end markets in light of costs of around £70 million to complete and  
commission the plant in fort dodge iowa and factoring in the risks associated with future returns from operating the plant the group concluded 
that the plant was highly unlikely to be completed or commissioned in the foreseeable future as a result the facility was mothballed an impairment 
review was carried out and as a result an impairment charge of £209 million against assets under construction as part of the impairment charge of 
£217 million was recognised as an exceptional item this exceptional item related to the bulk ingredients segment the recoverable amount was 
based on value in use calculated using the expected cash flow approach weighted for the potential timings of completion and commissioning the 
plant and using management’s internal forecasts of future cash flows for five years a pretax discount rate of 11 and a zero growth rate assumed 
in perpetuity
in the year ended 31 march 2010 following a review of its portfolio of research and development projects the group decided to write down assets 
relating to operations in the bulk ingredients segment resulting in an impairment writedown of £20 million relating to plant and machinery being 
recognised in exceptional items
in the year ended 31 march 2010 the group carried out a further review of its sugar refining operation in israel as a result of the deterioration of 
the margins driven by record high sugar prices and a surplus of eu beet sugar being exported into the israel domestic market the recoverable 
amount was based on value in use calculated based on management’s internal forecasts of future cash flows for the remainder of the operation’s 
contractual life and a pretax discount rate of 13 2010 – 13 an impairment of £11 million was recognised in exceptional items that year
leased assets
included in property plant and equipment is plant and machinery held under finance leases with a net book value of £11 million 2010 – £13 million 
17 investments in associates and joint ventures
associates notes £m
at 1 april 2009 8
exchange and other movements 1
at 31 march 2010 7
disposals of businesses 37 2
at 31 march 2011 5 
the group’s associates which are accounted for under the equity method are listed in note 42
during the year the group disposed of its investment in eridania tate  lyle spa for £3 million proceeds the carrying value was £2 million at the date 
of disposal note 37
the amounts equity accounted in the group income statement and statement of financial position are summarised below
income statement
year to 31 march
2011
£m
2010
£m
sales 4 5
expenses 4 5
profit before and after tax – –
statement of financial position
31 march
2011
£m
2010
£m
assets 10 12
liabilities 5 5
net assets 5 7
shareholder information
business review governance financial statements 84   tate  lyle annual report 2011
notes to the consolidated financial statements
17 investments in associates and joint ventures continued
joint ventures
the group’s joint ventures are proportionately consolidated and the continuing businesses are listed in note 42 the amounts proportionately 
consolidated in the group income statement and statement of financial position are summarised below
income statement year to 31 march 2011 year to 31 march 2010
notes
continuing 
operations  
£m
discontinued 
operations 
£m
continuing 
operations 
£m
discontinued 
operations 
£m
sales 5 403 3 323 6
other expense 344 7 273 3
profitloss before tax 59 4 50 3
income tax expense 14 – 9 –
profitloss for the year 45 4 41 3
statement of financial position 31 march
2011 
£m
2010
£m
assets
noncurrent assets 175 174
cash and cash equivalents 74 61
other current assets 158 118
407 353
liabilities
noncurrent borrowings 7 5
other noncurrent liabilities 23 18
current borrowings 11 10
other current liabilities 69 57
110 90
net assets 297 263
18 availableforsale financial assets 
£m
at 31 march 2009 39
additions 3
fair value loss 10
at 31 march 2010 32
additions 5
disposal of businesses 1
fair value gain 1
exchange 1
at 31 march 2011 36 
presented in the statement of financial position as follows 31 march
notes
2011
£m
2010
£m
noncurrent availableforsale financial assets 19 14
current assets held for sale 38 17 18
total 36 32
availableforsale financial assets primarily comprise £36 million 2010 – £32 million of unlisted securities the fair values of noncurrent available
forsale financial assets are approximated at cost where fair value can not be reliably measured the fair values of current assets held for sale are 
based on management’s valuation of expected proceeds based on a signed share sale agreement
the carrying value of the availableforsale financial assets are denominated in the following currencies
31 march
2011
£m
2010
£m
saudi riyal note a 14 15
us dollar note b 12 9
sterling 8 6
euro 2 2
total 36 32
a  saudi riyal comprises £14 million 2010 – £15 million of assets classified as held for sale in current assets
b  us dollar includes £3 million 2010 – £3 million of assets classified as held for sale in current assets tate  lyle annual report 2011   85
19 financial instruments by category
set out below is a comparison by category of carrying values and fair values of all of the group’s financial assets and financial liabilities as at  
31 march 2011 and 31 march 2010
31 march 2011
notes
amortised 
cost
£m
derivatives 
and other 
items in a 
hedging 
relationship
£m
held for 
trading
£m
available 
forsale
£m
total 
 carrying 
value
£m
fair 
 value
£m
availableforsale financial assets 18 – – – 19 19 19
trade and other receivables 23 274 – – – 274 274
cash and cash equivalents 33 654 – – – 654 654
derivative financial instruments – assets 20 – 42 141 – 183 183
borrowings 28 736 378 – – 1 114 1 154
derivative financial instruments – liabilities 20 – 55 127 – 182 182
trade and other payables 27 400 – – – 400 400
total  208 391 14 19 566 606 
31 march 2010
notes
amortised 
cost
£m
derivatives 
and other 
items in a 
hedging 
relationship
£m
held for 
trading
£m
available 
 forsale
£m
total 
 carrying 
 value
£m
fair 
 value
£m
availableforsale financial assets 18 – – – 14 14 14
trade and other receivables 23 398 – – – 398 398
cash and cash equivalents 33 504 – – – 504 504
derivative financial instruments – assets 20 – 48 151 – 199 199
borrowings 28 819 490 – – 1 309 1 318
derivative financial instruments – liabilities 20 – 75 117 – 192 192
trade and other payables 27 465 – – – 465 465
total 382 517 34 14 851 860
trade and other receivables presented above excludes £18 million 2010 – £28 million relating to prepayments
trade and other payables presented above excludes £7 million 2010 – £12 million relating to social security at 31 march 2010 £9 million in 
respect of deferred income relating to transitional aid was excluded 
included in borrowings are other items in a hedging relationship which are held at amortised cost with a fair value adjustment applied as they  
are in a fair value hedge
fair value hierarchy
set out below is how the group’s financial instruments measured at fair value fit within the following fair value hierarchy
− quoted prices unadjusted in active markets for identical assets or liabilities level 1
− inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly or indirectly level 2
− inputs for the asset or liability that are not based on observable market data level 3
the following tables illustrate the group’s financial assets and liabilities measured at fair value at 31 march 2011 and 31 march 2010
31 march 2011
notes
level 1
£m
level 2
£m
level 3
£m
total
£m
assets at fair value
availableforsale financial assets 18 – – 19 19
derivative financial instruments
– currency swaps 20 – 16 – 16
– interest rate swaps 20 – 40 – 40
– forward foreign exchange contracts 20 – 10 – 10
– commodity pricing contracts 20 53 50 14 117
assets at fair value 53 116 33 202
liabilities at fair value
derivative financial instruments
– currency swaps 20 – 46 – 46
– interest rate swaps 20 – 14 – 14
– forward foreign exchange contracts 20 – 10 – 10
– commodity pricing contracts 20 21 77 14 112
borrowings – 378 – 378
liabilities at fair value 21 525 14 560
shareholder information
business review governance financial statements notes to the consolidated financial statements
19 financial instruments by category continued
31 march 2010
notes
level 1
£m
level 2
£m
level 3
£m
total
£m
assets at fair value
availableforsale financial assets 18 – – 14 14
derivative financial instruments
– currency swaps 20 – 28 – 28
– interest rate swaps 20 – 38 – 38
– forward foreign exchange contracts 20 – 4 – 4
– commodity pricing contracts 20 61 58 10 129
assets at fair value 61 128 24 213
liabilities at fair value
derivative financial instruments
– currency swaps 20 – 58 – 58
– interest rate swaps 20 – 17 – 17
– forward foreign exchange contracts 20 – 10 – 10
– commodity pricing contracts 20 86 18 3 107
borrowings – 490 – 490
liabilities at fair value 86 593 3 682
level 1 financial instruments
the fair value of financial instruments traded in active markets commodity futures is based on quoted market prices at the balance sheet date  
a market is regarded as active if quoted prices are readily and regularly available from an exchange dealer broker industry group pricing service 
or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s length basis
level 2 financial instruments
the fair values of financial instruments that are not traded in an active market interest rate swaps cross currency swaps commodity pricing 
contracts and forward foreign exchange contracts are determined by using valuation techniques these valuation techniques maximise the use of 
observable market data where it is available and rely as little as possible on entity specific estimates
the fair value of interest rate swaps currency swaps and forward foreign exchange contracts is calculated as the present value of the future cash 
flows based on observable inputs drawn from interest yield curves sourced from a reputable third party source 
the amount shown within level 2 for borrowings only includes those borrowings which are designated as hedged items in fair value hedges with 
respect to interest rate risk and whose carrying amount is adjusted for the gain or loss on the hedged item attributable to the hedged risk
level 3 financial instruments
the fair value of financial instruments is based on unobservable inputs that are supported by little or no market activity at the balance sheet date 
these inputs generally reflect the entity’s own assumptions about how a market participant would reasonably be expected to determine the price  
of a financial instrument
for commodity pricing contracts in evaluating the significance of fair value inputs the group generally classifies assets or liabilities as level 3 when 
their fair value is determined using unobservable inputs that individually or when aggregated with other unobservable inputs represent more than 
10 of the fair value of the observable inputs of the assets or liabilities
availableforsale financial assets which are analysed at level 3 primarily represent investments in unlisted securities the fair values of the unlisted 
securities are approximated at cost hence value is adjusted only for permanent impairment and for no other movement
for financial instruments in level 3 the group does not consider that changes to inputs to reasonable alternatives would have a material impact on 
the income statement or equity
the following table reconciles the movement in the group’s financial instruments classified in level 3 of the fair value hierarchy
commodity 
pricing  
contracts 
 – assets
£m
commodity 
pricing  
contracts  
– liabilities
£m
available  
forsale  
assets
£m
total
£m
at 1 april 2009 21 – 11 32
total gains or losses in operating profit 10 3 – 7
purchases – – 3 3
settlements 21 – – 21
at 31 march 2010 10 3 14 21
total gains or losses
– in operating profit 14 14 – –
– in other comprehensive income – – 1 1
purchases – – 5 5
settlements 10 3 1 8
at 31 march 2011 14 14 19 19
86   tate  lyle annual report 2011 20 derivative financial instruments
31 march 2011 31 march 2010
assets  
£m
liabilities 
£m
assets 
£m
liabilities 
£m
noncurrent derivative financial instruments used  
to manage the group’s net debt profile
currency swaps 
– net investment hedges – 43 – –
– fair value net investment and cash flow hedges – – – 51
– held for trading 12 1 16 2
interest rate swaps
– fair value hedges 24 – 22 3
– held for trading 10 11 9 11
46 55 47 67
current derivative financial instruments used  
to manage the group’s net debt profile
currency swaps – accrued interest 4 2 12 5
interest rate swaps – accrued interest 6 3 7 3
10 5 19 8
total derivative financial instruments used 
to manage the group’s net debt profile 56 60 66 75
other noncurrent derivative financial instruments
forward foreign exchange contracts – cash flow hedges 1 1 1 –
commodity pricing contracts – cash flow hedges 1 – 1 –
2 1 2 –
other current derivative financial instruments
forward foreign exchange contracts  
– cash flow hedges 9 9 3 6
– held for trading – – – 4
commodity pricing contracts 
– cash flow hedges 3 1 2 7
– held for trading 113 111 126 100
125 121 131 117
total other derivative financial instruments 127 122 133 117
total derivative financial instruments 183 182 199 192
presented in the statement of financial position as follows
noncurrent derivative financial instruments 48 56 49 67
current derivative financial instruments 135 126 150 125
  183 182 199 192
the ineffective portion recognised in operating profit that arises from cash flow hedges amounts to £nil 2010 – £3 million loss
the ineffective portion recognised in operating profit that arises from net investment hedges amounts to £nil 2010 – £1 million gain
the ineffective portion recognised in net finance expense that arises from fair value hedges amounts to £nil 2010 – £1 million gain 
tate  lyle annual report 2011   87
shareholder information
business review governance financial statements 88   tate  lyle annual report 2011
notes to the consolidated financial statements
20 derivative financial instruments continued 
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 are as follows
31 march
2011
£m
2010
£m
euro 6 68
us dollar 33 30
sterling 1 75
singapore dollar 30 25
other 3 4
gains and losses recognised in the hedging reserve in equity note 25 on forward foreign exchange and commodity pricing contracts as of  
31 march 2011 will be released to the income statement at various dates up to 17 months from the balance sheet date
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 interest rate and currency swap contracts applied in fair value hedging relationships as of  
31 march 2011 were £353 million and £nil respectively 2010 – £364 million and £100 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 the usa and europe the notional principal amounts of the outstanding currency swap contracts applied in net investment hedging relationships 
as of 31 march 2011 were £290 million 31 march 2010 – £298 million within net investment hedging gains a fair value gain of £7 million 2010 – 
£6 million gain on translation of the currency swap contracts to pounds sterling at the balance sheet date was recognised in the translation reserve 
in shareholders’ equity note 25
in addition at 31 march 2011 of the group’s borrowings a total of £351 million 2010 – £564 million is designated as hedges of the net 
investments in overseas subsidiaries
debtrelated derivatives held for trading
certain currency swap contracts associated with the partial repurchase of the 65 guaranteed notes 2012 were closed out during the year ended 
31 march 2010 by entering into offsetting currency swap contracts these swaps do not qualify for hedge accounting the notional amounts of the 
outstanding currency swap contracts not designated within hedge relationships as at 31 march 2011 were £192 million 2010 – £203 million
some of the group’s interest rate swap contracts hedge the group’s exposure to interest rate risk but do not qualify for hedge accounting  
the notional amounts of the outstanding interest rate swap contracts not designated within hedge relationships as of 31 march 2011 were 
£218 million 2010 – £231 million
trading contracts
commodity pricing contracts held for trading relate to the group’s commodity trading activities which are undertaken for the purposes of supporting 
underlying operations foreign exchange contracts held for trading are undertaken to hedge anticipated future contractual cash flows within the 
group’s cereal sweetners and starches business tate  lyle annual report 2011   89
21 financial risk factors
management of financial risk
the key financial risks faced by the group are credit risk liquidity risk and market risks which include interest rate risk foreign exchange risk and 
certain commodity price risks the board regularly reviews these risks and approves written policies covering the use of financial instruments to 
manage these risks and sets overall risk limits 
the chief financial officer retains the overall responsibility for management of financial risk for the group most of the group’s financing interest 
rate and foreign exchange risk 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 chief financial officer and has other board members who are independent of the 
treasury function the board of tate  lyle international finance plc approves policies and procedures setting out permissible funding and hedging 
instruments and a system of authorities for the approval of transactions and exposures within the limits approved by the board of tate  lyle plc
group interest rate and currency exposures are concentrated either in the treasury company or in appropriate holding companies through market
related transactions with group subsidiaries these positions are managed by the treasury company within its authorised limits
commodity price risks are managed through divisional commodity trading functions in the usa and europe these functions are controlled by 
divisional management who are responsible for ratifying general strategy and overseeing performance on a monthly basis commodity price 
contracts are categorised as being held either for trading or for hedging price exposures commodity contracts held for trading within the group  
are limited confined only to tightly controlled areas within the corn pricing areas
the derivative financial instruments approved by the board of tate  lyle plc 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 
market risks
foreign exchange management
tate  lyle operates internationally and is exposed to foreign exchange risks arising from commercial transactions transaction exposure and from 
recognised assets liabilities and investments in overseas operations translation exposure
transaction exposure
the group’s policy requires subsidiaries to hedge transactional currency exposures against their functional currency once the transaction is 
committed or highly probable mainly through the use of forward foreign exchange contracts
the amounts deferred in equity from derivative financial instruments designated as cash flow hedges are released to the income statement and 
offset against the movement in underlying transactions only when the forecast transactions affect the income statement
translation exposure
the group manages the foreign exchange exposure to net investments in overseas operations particularly in the usa and europe by maintaining 
a percentage of net debt in us dollars and euro to mitigate the effect of these risks this is achieved by borrowing principally in us dollars and 
euro which provide a partial match for the group’s major foreign currency assets the group also manages its foreign exchange exposure to net 
investments in overseas operations through the use of currency swap contracts the amount deferred in equity from derivative financial instruments 
designated as net investment hedges is offset against the foreign currency translation effect of the net investment in overseas operations and is 
released to the income statement upon disposal of those investments
a weakening of the us dollar and euro against sterling would result in exchange gains on net debt denominated in these currencies which would  
be offset against the losses on the underlying foreign currency assets at the year end net debt amounting to £464 million 2010 – £814 million 
was held in the following currencies net borrowings of us dollars 98 2010 – 76 euro 35 2010 – 20 net deposits of pounds sterling  
28 2010 – net borrowings of 7 and other currencies 5 2010 – 3 the group’s interest cost through the income statement is impacted  
by changes in the relevant exchange rates
the following table illustrates only the group’s sensitivity to the fluctuation of the major currencies on its financial assets and liabilities as defined 
and set out in note 19
31 march 2011 31 march 2010
income 
statement
–£m
equity
–£m
income 
statement
–£m
equity
–£m
sterlingus dollar 5 change 1 23 – 28
sterlingeuro 5 change  – 11 – 15
interest rate management
the group has an exposure to interest rate risk arising principally from changes in us dollar sterling and euro interest rates this risk 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 jointventure net debt is fixed or capped excluding outofthemoney caps for more than one year and that no 
interest rates are fixed for more than 12 years at 31 march 2011 the longest term of any fixed rate debt held by the group was until november 
2019 2010 – november 2019 the proportion of net debt at 31 march 2011 excluding the group’s share of jointventure net debt that was  
fixed or capped for more than one year was 85 2010 – 82 a derogation of the maximum percentage of fixed rate debt was approved by  
the tate  lyle plc board until 30 june 2011
the group considers a 100 basis point change in interest rates a reasonably possible change except where rates are less than 100 basis points  
in these instances it is assumed that the interest rates increase by 100 basis points and decrease to zero for the purpose of performing the 
sensitivity analysis the impact is calculated with reference to the gross debt and cash held as at 31 march 2011 assuming that other variables 
remain unchanged 
if interest rates increase by 100 basis points group profit before tax will increase by approximately £2 million 2010 – £1 million if interest rates 
decrease by 100 basis points or less where applicable group profit before tax will decrease by approximately £1 million 2010 – £1 million
shareholder information
business review governance financial statements 90   tate  lyle annual report 2011
notes to the consolidated financial statements
21 financial risk factors continued
price risk management
tate  lyle participates mainly in four markets food and beverage industrial ingredients pharmaceutical and personal care and animal feed  
food and beverage and industrial ingredients are the most significant all ingredients are produced from renewable crops predominantly  
corn maize
tate  lyle is exposed to movements in the future prices of commodities in those domestic and international markets where the group buys and 
sells corn and energy for production commodity futures forwards and options are used where available to hedge inventories and the costs of raw 
materials for unpriced and prospective contracts not covered by forward product sales in most cases these hedging contracts mature within one 
year and are either traded on recognised exchanges or over the counter
the table below illustrates the sensitivity of the group’s commodity pricing contracts as of 31 march to the price movement of commodities 
31 march 2011 31 march 2010
income 
statement
–£m
equity
–£m
income 
statement
–£m
equity
–£m
corn 30 change 2 – 2 –
the majority of the group’s commodity pricing contracts are held for trading and changes in marktomarket values of these contracts are taken 
directly into the income statement amounts deferred in equity from commodity pricing contracts designated as cash flow hedges are released to 
the income statement and offset against the movement in underlying transactions when they occur 
credit risk management
counterparty credit risk arises from the placing of deposits and entering into derivative financial instrument contracts with banks and financial 
institutions as well as credit exposures inherent within the group’s outstanding receivables
the group manages credit risk by entering into financial instrument contracts only with highly creditrated authorised counterparties which are 
reviewed and approved annually by the board 
the group has board approved maximum counterparty exposure limits for specified banks and financial institutions based on the longterm credit 
ratings of standard  poor’s and moody’s typically single a longterm credit ratings or higher trading limits assigned to commercial customers are 
based on ratings from dun  bradstreet and credit risk monitor in cases where published financial ratings are not available or inconclusive credit 
application reference checking and obtaining of customers’ confidential financial information such as liquidity and turnover ratio are required to 
evaluate customer’s credit worthiness
counterparties’ positions are monitored on a regular basis to ensure that they are within the approved limits and there are no significant 
concentrations of credit risks
the group considers its maximum exposure to credit risk as follows
31 march
2011
£m
2010
£m
cash and cash equivalents 654 504
trade and other receivables 274 398
derivative financial instruments – assets 183 199
availableforsale financial assets 19 14
the group’s trade receivables are short term in nature and largely comprise amounts receivable from business customers there are no amounts 
included in trade receivables in respect of securitised receivables 2010 – £nil concentrations of credit risk with respect to trade receivables are 
limited due to the group’s having a number of key quality customers and a customer base which is large unrelated and internationally dispersed
liquidity risk management
the group manages its exposure to liquidity risk and ensures maximum flexibility in meeting changing business needs by maintaining access to 
a wide range of funding sources including capital markets and bank borrowings capital market issues outstanding at 31 march 2011 include the 
us300 million 6125 144a bond maturing in june 2011 the £100 million 650 bond maturing in june 2012 the us500 million 500 144a 
bond maturing in november 2014 the us250 million 6625 144a bond maturing in june 2016 and the £200 million 675 bond maturing in 
november 2019
the group ensures that it has sufficient undrawn committed bank facilities to provide liquidity backup to cover its funding requirements for  
the foreseeable future the group has a core committed bank facility of us1 billion which matures in october 2012 this facility is unsecured  
and contains common financial covenants for tate  lyle and its subsidiary companies that the 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 group monitors compliance against all its financial obligations and it is group policy to manage the consolidated statement of financial  
position so as to operate well within these covenanted restrictions in both the current and comparative reporting period the group complied  
with its financial covenants at all measurement points 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 arm’s length basis tate  lyle annual report 2011   91
21 financial risk factors continued 
current group policy is to ensure that after subtracting the total of undrawn committed facilities no more than 10 of gross debt matures  
within 12 months and no more than 35 has a maturity within two and a half years at 31 march 2011 after subtracting total undrawn committed 
facilities there was no debt maturing within two and a half years 2010 – none the average maturity of the group’s gross debt was 48 years 
2010 – 54 years at the year end the group held cash and cash equivalents of £654 million 2010 – £504 million and had committed facilities 
of £623 million 2010 – £659 million of which £623 million 2010 – £515 million was undrawn 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
the table below analyses the group’s nonderivative financial liabilities and derivative assets and liabilities based on the remaining period at the 
balance sheet date to the contractual maturity date the amounts disclosed in the table are the contractual undiscounted cash flows
31 march 2011
liquidity analysis
1 year
£m 
15 years
£m
5 years
£m
borrowings including finance leases 229 436 418
interest on borrowings 52 151 68
trade and other payables 406 1 –
derivative contracts 
– receipts
 
361
 
970
 
–
– payments 346 990 –
commodity contracts  5 – – 
31 march 2010
1 year
£m 
15 years
£m
5 years
£m
borrowings including finance leases 191 653 435
interest on borrowings 61 185 96
trade and other payables 474 1 –
derivative contracts
– receipts
 
407
 
778
 
–
– payments 394 802 –
commodity contracts 123 3 –
included in borrowings are £2394000 of 65 cumulative preference shares only one year’s worth of interest payable on these cumulative 
preference shares is included in the less than one year category above
interest on borrowings is calculated based on borrowings held at year end without taking into account future issues floatingrate interest is 
calculated using forward interest rates derived from interest rate yield curves as at year end
derivative contracts include currency swaps forward exchange contracts and interest rate swaps all commodity pricing contracts such as options 
and futures are shown separately under commodity contracts
commodity contracts include only net settled commodity derivative contracts and gross settled commodity purchase contracts with negative fair 
values purchase contracts outflows represent actual contractual cash flows under the purchase contracts and not their fair values cash outflows 
from the purchase contracts are offset by cash inflows received from sale contracts however these inflows are not included as part of this analysis
financial liabilities denominated in currencies other than pounds sterling are converted to pounds sterling using year end exchange rates
capital risk management
the group’s primary objectives in managing its capital are to safeguard the business as a going concern to maintain sufficient financial flexibility  
to undertake its investment plans to retain as a minimum an investment grade credit rating which enables consistent access to debt capital 
markets and to optimise capital structure in order to reduce the cost of capital the group’s financial profile and level of financial risk is assessed  
on a regular basis in the light of changes to the economic conditions business environment the group’s business profile and the risk 
characteristics of its businesses
tate  lyle has contractual relationships with moody’s and standard and poor’s sp for the provision of credit ratings and it is the group’s policy 
to keep them informed of all major developments at 31 march 2011 the longterm credit rating from moody’s was baa3 stable outlook and from 
sp was bbb– stable outlook the group is committed to maintaining investment grade credit ratings
the group regards its total capital as follows
31 march
notes
2011
£m
2010
£m
net debt 34 464 814
total shareholders’ equity 973 854
total capital 1 437 1 668
shareholder information
business review governance financial statements 92   tate  lyle annual report 2011
notes to the consolidated financial statements
21 financial risk factors continued
the board of tate  lyle plc has set two ongoing key performance indicators kpis to measure the group’s financial strength the target levels  
for these financial kpis are that the ratio of net debtebitda should not exceed 20 times and interest cover should exceed 5 times these ratios 
are calculated on the same basis as the external financial covenants noted above the ratios for these kpis for the financial years ended  
31 march 2011 and 31 march 2010 are
31 march
2011 2010
net debtebitda 11 18
interest cover 69 58
22 inventories 31 march
2011
£m
2010
£m
raw materials and consumables 288 202
work in progress 16 19
finished goods 150 188
total 454 409
finished goods inventories of £4 million 2010 – £2 million are carried at realisable value this being lower than cost inventories of £197 million  
2010 – £60 million are carried at market value
in 2010 the group recognised an impairment charge of £4 million against finished goods inventories at its sugar refining business in israel which 
was included in exceptional items the sugar refining business in israel has been classed as an asset held for sale at 31 march 2011 and is reported 
in discontinued operations
23 trade and other receivables 31 march
2011
£m
2010
£m
noncurrent trade and other receivables
other receivables 1 2
total 1 2
31 march
2011
£m
2010
£m
current trade and other receivables
trade receivables 263 329
less provision for impairment of receivables 19 24
trade receivables – net 244 305
prepayments and accrued income 18 28
margin deposits 5 45
government grants receivable – 3
other receivables 24 43
total 291 424
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
there is limited credit risk with respect to trade receivables as the group has a number of key quality customers and a large number of 
internationally dispersed customers the carrying value of trade and other receivables represents the maximum credit exposure
government grants receivable relate to the transitional aid and restructuring aid provisions of the eu sugar regime these amounts were 
receivable subject to audit by the governments of the jurisdictions to which they relate
the carrying amount of trade and other receivables are denominated in the following currencies
31 march
2011
£m
2010
£m
us dollar 142 231
euro note a 75 98
sterling 19 31
other 56 66
total 292 426
a  includes £nil of government grants receivable under the transitional aid and restructuring aid provisions of the eu sugar regime  
2010 – £3 million tate  lyle annual report 2011   93
23 trade and other receivables continued
provision for impairment of receivables
31 march
2011
£m
2010
£m
at 1 april 24 21
charge for the year 1 3
reversal of impairment – 1
disposal of businesses 5 –
exchange 1 1
at 31 march 19 24
the creation and release of provision for impaired receivables have been included in the income statement 
the group recognised a loss of £1 million 2010 – £3 million for impairment of its trade receivables during the year the loss is solely from 
continuing operations and has been included in operating profit in the income statement note 6
as at 31 march 2011 trade receivables of £37 million 2010 – £63 million were past due but not impaired the ageing analysis of these trade 
receivables is as follows
31 march
2011
£m
2010
£m
up to 30 days past due 26 42
1–3 months past due 1 4
over 3 months past due 10 17
total 37 63
24 share capital and share premium
ordinary 
share capital 
£m 
share
premium
£m
total
£m
at 1 april 2009 115 404 519
proceeds from issuance of ordinary shares –   1 1
issue of shares for scrip dividends –   2 2
capitalised on scrip dividends –   2 2
at 31 march 2010 115 405 520
proceeds from issuance of ordinary shares –   1 1
issue of shares for scrip dividends 2 33 35
capitalised on scrip dividends –   33 33
at 31 march 2011 117 406 523
ordinary shares carry the right to participate in dividends and each share entitles the holder to one vote on matters requiring shareholder approval
allotted called up and fully paid equity share capital
year to 31 march 2011 year to 31 march 2010
shares £m shares £m
at 1 april 460 575 700 115 460 012 801 115
allotted under share option schemes 217 743 – 48 287 –
scrip dividend shares issued 7 317 897 2 514 612 –
at 31 march 468 111 340 117 460 575 700 115
treasury shares and shares held in esop trust
as at 31 march 2011 the group held 175328 shares 2010 – 512490 shares in treasury
during the year 337162 shares 2010 – 816012 shares were released from treasury to satisfy share options exercised
the shares held in treasury at 31 march 2011 represented less than 01 2010 – 01 of the parent company’s share capital at the year end 
and have a nominal value of less than £01 million 2010 – £01 million
as at 31 march 2011 the group held 2713694 shares 2010 – 3141100 shares in an esop trust at a nominal value of 25p and a market  
value of 5775p 2010 – 4542p
during the year ended 31 march 2011 shareholders were given the option to receive the final dividend relating to the prior year and the interim 
dividend relating to the current year in the form of a scrip issue on 30 july 2010 and 7 january 2011 the group issued 5716625 shares and 
1601272 shares respectively for scrip at a nominal value per share of 25p and a cash equivalent value of £35 million
shareholder information
business review governance financial statements 94   tate  lyle annual report 2011
notes to the consolidated financial statements
24 share capital and share premium continued 
analysis of ordinary shareholders
31 march 2011
number of
holdings  total 
up to 500 shares of 25p each 5 133 300 1 362 081 03
501 – 1 000 4 340 253 3 408 994 08
1 001 – 1 500 2 262 132 2 818 630 06
1 501 – 2 000 1 555 91 2 814 748 06
2 001 – 5 000 2 449 143 7 603 898 16
5 001 – 10 000 560 33 3 943 911 08
10 001 – 200 000 586 34 29 665 839 63
200 001 – 500 000 102 06 33 304 495 71
above 500 000 130 08 383 188 744 819
total 17 117 1000 468 111 340 1000
25 other reserves
hedging 
 reserve
£m
translation 
reserve
£m
other  
reserves  
note a
£m
total
£m
at 31 march 2009 23 123 119 219
cash flow hedges
– fair value gains in the year 13 – – 13
– reclassified and reported in the income statement during the year 11 – – 11
– tax effect of the above movements 4 – – 4
loss on revaluation of availableforsale financial assets – – 10 10
currency translation differences
– net investment hedging gains in the year – 58 – 58
net exchange differences on consolidation – 67 – 67
at 31 march 2010 3 114 109 220
cash flow hedges
– fair value gains in the year 9 – – 9
– reclassified and reported in the income statement during the year 9 – – 9
– tax effect of the above movements 5 – – 5
gain on revaluation of availableforsale financial assets – – 1 1
currency translation differences
– net investment hedging gains in the year – 29 – 29
net exchange differences on consolidation – 65 – 65
items transferred to the income statement on disposal 3 20 – 23
at 31 march 2011 7 58 110 175
a  other reserves include the merger reserve the availableforsale fair value reserve and the statutory reserves of certain overseas subsidiaries  
all of which are nondistributable tate  lyle annual report 2011   95
26 sharebased payments
during the year to 31 march 2011 various equitysettled sharebased payment arrangements existed as set out below the grants made during 
the year and the prior year were as follows
 performance 
shar e plan   
 executive  
share option 
scheme  
deferred  
bonus  
shar e plan  
sharesave scheme
type of arrangement
duration 
 in years
timing of grant
biannually annually  
in june  
note a  
annually  
in july   
annually  
in june   
annually in 
december  
number of optionsshares granted  
  in year to 31 march 2011 3 305 524 – – 3 – 14 218
5 – 7 482
number of optionsshares granted  
  in year to 31 march 2010 5 001 896 – – 3 – 85 632
5 – 45 453
fair value per share for 2011 grant pence 381 – – 3 – 84
5 – 94
fair value per share for 2010 grant pence 234 – – 3 – 90
5 – 97
valuation basis monte carlo binomial lattice monte carlo blackscholes blackscholes
contractual life 10 years 10 years 3 years 35 years 35 years
vesting conditions note b note c note d note e note e
a the last grant under this scheme was made in june 2004
b  for the year ended 31 march 2011 exercise of 3305524 shares is dependent 50 on adjusted diluted earnings per share and 50 on return 
on capital employed
  for the year ended 31 march 2010 exercise of 419403 shares was not subject to any performance conditions exercise of 269616 shares 
was dependent on total shareholder return and the exercise of 4312877 shares was dependent 50 on total shareholder return and 50 on 
adjusted diluted earnings per share
c  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
d  executives have previously had the opportunity to defer up to 50 of their annual cash bonus after deduction of tax national insurance or other 
social security payments 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 as described in b above participants received 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 were paid on the deferred shares but not on matching shares this plan was suspended during the year ended 31 march 2009
e  options granted in the years to 31 march 2010 and 31 march 2011 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 before tax of £9 million 2010 – £5 million related to equitysettled sharebased payment transactions  
during the year
details of the movements for equitysettled share option schemes during the year to 31 march were as follows
31 march 2011 31 march 2010
shares
number
weighted 
average 
exercise  
price
pence
shares
number
weighted 
average 
 exercise 
 price
pence
outstanding at 1 april 11 154 941 72 9 780 720 111
granted 3 327 224 3 5 132 981 11
exercised 982 311 331 1 064 000 174
lapsed 2 240 878 54 2 694 760 55
outstanding at 31 march 11 258 976 33 11 154 941 72
shareholder information
business review governance financial statements 96   tate  lyle annual report 2011
notes to the consolidated financial statements
26 sharebased payments continued
the weighted average tate  lyle plc share price at the date of exercise for share options exercised during the year was 514 pence 2010 – 
377 pence at 31 march 2011 1008988 2010 – 1728068 of the outstanding options were exercisable at a weighted average exercise price  
of 332 pence 2010 – 330 pence a detailed breakdown of the range of exercise prices for options outstanding at 31 march is shown in the  
table below
year to 31 march 2011 year to 31 march 2010
number 
outstanding  
at end of year  
weighted 
average 
remaining 
contractual  
life in months 
weighted 
average 
exercise 
 price 
 pence 
  number 
outstanding  
at end of year 
weighted 
average 
remaining 
contractual  
life in months 
weighted 
average 
 exercise  
price  
pence 
at nil cost 10 183 236 511 – 8 864 912 555 –
£001 to £199 – – – – – –
£200 to £399 1 002 184 314 338 2 044 399 409 341
£400 to £799 73 556 381 449 245 630 365 443
total 11 258 976 492 33 11 154 941 524 72
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
at 31 march 2011
 performance 
share plan 
sharesave 
scheme 
december 
expected volatility na 35
expected life na 3353 years
riskfree rate – 2130
expected dividend yield 52 55
forfeiture rate 0 10
correlation with comparators na na
volatility of comparators na na
expectations of meeting performance criteria 100 na
weighted average market price at date of grant pence 443 538
at 31 march 2010
 performance 
share plan 
sharesave 
scheme 
december 
expected volatility 40 35
expected life na 3353 years
riskfree rate – 334
expected dividend yield 51578 57
forfeiture rate 0 10
correlation with comparators 35 na
volatility of comparators 26144 na
expectations of meeting performance criteria 100 na
weighted average market price at date of grant pence 346 418
the expected volatility is based on the company’s historical volatility over the threeyear period prior to each award date 
27 trade and other payables
31 march
2011 
£m
2010
£m
noncurrent payables
accruals and deferred income 1 –
other payables – 1
total 1 1
31 march
2011 
£m
2010
£m
current payables
trade payables 245 302
social security 7 12
deferred consideration note a 7 7
accruals and deferred income note b 76 126
margin payables 6 –
other payables 65 38
total 406 485
a deferred consideration relates to the acquisition of g c hahn  co note 37
b  includes government grant deferred income of £nil 2010 – £9 million under the transitional aid provisions of the eu sugar regime tate  lyle annual report 2011   97
28 borrowings
noncurrent borrowings
31 march
2011 
£m
2010
£m
unsecured borrowings
2394000 65 cumulative preference shares of £1 each 2010 – £2394000 note a 2 2
industrial revenue bonds 20162036 us92000000 57 61
6125 guaranteed notes 2011 us300000000 – 200
65 guaranteed notes 2012 £100000000 note b 104 106
50 guaranteed notes 2014 us500000000 328 346
6625 guaranteed notes 2016 us250000000 170 176
675 guaranteed notes 2019 £200000000 201 200
862 1 091
bank loans
variable unsecured loans us 7 6
7 6
other borrowings
obligations under finance leases 18 22
18 22
total noncurrent borrowings 887 1 119
a  on a return of capital on a windingup the holders of 65 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 such matters
b  during the year ended 31 march 2010 the group redeemed £100 million of the 65 guaranteed notes maturing in june 2012
current borrowings
31 march
2011 
£m
2010
£m
6125 guaranteed note 2011 us 300000000 187
–
unsecured bank overdrafts 10 23
drawdown of committed facilities – 139
shortterm unsecured loans 25 25
obligations under finance leases 5 3
total current borrowings 227 190
secured borrowings
lease liabilities are effectively secured as the rights to the leased asset revert to the lessor in the event of default
fair values
the fair values of the group’s borrowings compared with their book values are as follows
31 march 2011 31 march 2010
book value
£m
fair value
£m
book value
£m
 fair value
£m
noncurrent unsecured borrowings 862 900 1 091 1 100
noncurrent bank loans 7 7 6 6
other noncurrent borrowings 18 18 22 22
other current borrowings 227 229 190 190
total 1 114 1 154 1 309 1 318
the fair value of borrowings has been determined using either quoted market prices broker dealer quotations or discounted cash flow analysis
shareholder information
business review governance financial statements 98   tate  lyle annual report 2011
notes to the consolidated financial statements
28 borrowings continued
interest rate risks and maturity of borrowings
the maturity profile of the group’s noncurrent borrowings is as follows
31 march
2011 
£m
2010
£m
one to two years 115 203
two to five years 338 470
after five years 434 446
total noncurrent borrowings 887 1 119
floating rate borrowings bear interest based on relevant national libor equivalents if the interest rates applicable to the group’s floating rate 
debt and cash held as at 31 march 2011 rise by an average of 1 over the year to 31 march 2012 this would increase group profit before tax by 
approximately £2 million 2010 – £1 million
taking into account the group’s interest rate and cross currency swap contracts the effective interest rates of its borrowings are as follows
31 march
2011 2010
2394000 65 cumulative preference shares of £1 each 65 65
industrial revenue bonds 2016–2036 us92000000 03 03
6125 guaranteed notes 2011 us300000000 51 50
65 guaranteed notes 2012 £100000000 37 72
50 guaranteed notes 2014 us500000000 31 49
6625 guaranteed notes 2016 us250000000 59 59
675 guaranteed notes 2019 £200000000 47 48
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 an undrawn committed multicurrency facility of £623 million 2010 – £515 million which matures in october 2012 this facility 
incurs commitment fees at market rates prevailing when the facility was arranged the facility may only be withdrawn in the event of specified events 
of default in addition the group has substantial uncommitted facilities
finance lease commitments
amounts payable under finance lease commitments are as follows
31 march 2011 31 march 2010
minimum lease 
payments
£m
present value of 
minimum lease 
payments
£m
minimum lease 
payments
£m
present value of 
minimum lease 
payments
£m
within one year 7 5 5 3
between one and five years 18 16 20 17
after five years 3 2 7 5
28 23 32 25
less future finance charges 5 7
present value of minimum lease payments 23  25 
finance lease agreements allow for renewal at the end of the original tenyear lease term at the option of the group
29 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 net liabilitiesassets in the year are as follows
deferred tax £m
at 1 april 2009 48
credited to the income statement 108
credited to the statement of comprehensive income 25
credited directly to equity 1
exchange 2
at 31 march 2010 84
charge to the income statement 38
charge to the statement of comprehensive income –
credited directly to equity 1
exchange 3
at 31 march 2011 44 tate  lyle annual report 2011   99
29 deferred tax continued 
of the amounts of deferred tax charged to the income statement and other comprehensive income a credit of £18 million 2010 – £03 million 
arises from changes in tax rates there was no impact from the imposition of new taxes 
deferred tax assets in respect of unutilised tax losses of £451 million 2010 – £371 million have not been recognised to the extent that they exceed 
taxable profits against which these assets may be recovered no unrelieved tax losses expired under current tax legislation in the year ended  
31 march 2011
deferred tax assets in respect of tax losses of £39 million have been recognised in the current year in relation to the disposal of fort dodge  
in addition tax losses of £25 million have been recognised in the current year to offset the deferred tax liability arising from the uk pensions surplus
the total deferred tax on unremitted earnings is £55 million 2010 – £33 million of which £06 million 2010 – £06 million has been recognised 
the group has not recognised the remaining amount as it is able to control the timing of the reversal of these temporary differences and it is 
probable that they will not reverse in the foreseeable future
the aggregate amount of temporary differences arising from unremitted profits at the balance sheet date was approximately £49 million  
2010 – £27 million 
other deferred tax liabilities principally relate to deferred tax on acquired intangible assets 
other deferred tax assets principally relate to deferred tax on provisions 
the movements in deferred tax assets and liabilities during the year are as follows
deferred tax liabilities
capital 
allowances 
in excess of 
depreciation
£m
other
£m
total
£m
at 1 april 2009 102 54 156
transfers between categories – 2 2
credited to the income statement 94 25 119
exchange 1 4 5
at 31 march 2010 7 23 30
transfers between categories – 3 3
charged to the income statement 84 7 91
charged to the statement of comprehensive income – 2 2
exchange 6 – 6
at 31 march 2011 85 29 114
deferred tax assets
retirement 
benefit 
obligations
£m
sharebased 
payments
£m
tax  
losses
£m
other
£m
total
£m
at 1 april 2009 81 2 – 25 108
transfers between categories – – – 2 2
chargedcredited to the income statement 10 1 4 4 11
creditedcharged to the statement of comprehensive income 29 – – 4 25
credited to equity – 1 – – 1
exchange 6 – – 1 7
at 31 march 2010 94 2 4 14 114
transfers between categories – – – 3 3
chargedcredited to the income statement 1 – 42 12 53
chargedcredited to the statement of comprehensive income 19 – 22 1 2
credited to equity – 1 – – 1
exchange 5 – 4 – 9
at 31 march 2011 69 3 64 22 158
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 statement of financial position as follows
31 march
2011 
£m
2010
£m
deferred tax liabilities 30 59
deferred tax assets 74 143
total 44 84
shareholder information
business review governance financial statements 100   tate  lyle annual report 2011
notes to the consolidated financial statements
30 retirement benefit obligations
a plan information
the group maintains pension plans for its operations throughout the world some 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  
in the united kingdom the most recent actuarial valuations of plan assets and the present value of the defined benefit obligations were carried  
out as at 31 march 2010 by independent actuaries and the results of these valuations are being finalised
the group also maintains defined contribution pension schemes and some fully insured pension schemes
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
in the year ended 31 march 2010 the group decided to close the main united kingdom pension scheme to future accrual from 6 april 2011  
at the same time the decision that the group would no longer fund early retirements was communicated to members these changes gave rise  
to exceptional items in the income statement for the year ended 31 march 2010 note 7
the group’s subsidiaries in the usa provide unfunded retirement medical and life assurance benefits to their employees
during the year the group announced its intention to close its main us pension schemes which closed to future accrual from 1 january 2011
the group expects to contribute approximately £40 million to its defined benefit plans in the year to 31 march 2012 subject to the finalisation of  
the 2010 actuarial valuations of the uk schemes
b principal assumptions
the principal assumptions used for the purpose of the actuarial valuations were as follows
pension benefits
medical  
benefits year to 31 march 2011 uk us others
inflation rate 2636 25 20 25
expected rate of salary increases 44 35 20 na
expected rate of pension increases 34 na 13 na
discount rate 55 54 52 53
expected return on plan assets total 62 72 53 na
expected equity return on plan assets 84 80 65 na
pension benefits
medical  
benefits year to 31 march 2010 uk us others
inflation rate 37 25 20 25
expected rate of salary increases 45 35 20 na
expected rate of pension increases 35 na 13 na
discount rate 55 57 48 56
expected return on plan assets total 59 75 63 na
expected equity return on plan assets 81 84 75 na
during the year the uk government announced that the consumer price index cpi rather than the retail price index rpi should be used as the 
basis of the calculation of inflation for the statutory index linked features of retirement benefits accordingly the obligations of the uk schemes have 
been calculated with reference to the cpi where permitted by the scheme rules for the year ended 31 march 2011 the inflation rate applied for 
cpi and rpi are 26 and 36 respectively
expected longevity post age 65
mortality assumptions – year to 31 march 2011
uk us
male aged 65 now 21 years 19 years
male aged 65 in 20 years’ time 24 years 19 years
female aged 65 now 22 years 21 years
female aged 65 in 20 years’ time 24 years 21 years
expected longevity post age 65
mortality assumptions – year to 31 march 2010
uk us
male aged 65 now 21 years 19 years
male aged 65 in 20 years’ time 24 years 19 years
female aged 65 now 22 years 21 years
female aged 65 in 20 years’ time 24 years 21 years
shorter longevity assumptions are used for members who retire on grounds of illhealth
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 positive 93 2010 – positive 265 and amounted to  
a gain of £109 million 2010 – £258 million gain tate  lyle annual report 2011   101
30 retirement benefit obligations continued
medical cost trend rates are estimated at 95 per annum 2010 – 10 grading down to 5 by 2020 if medical cost trend rates were to increase 
or decrease by 1 the effects are estimated as follows
31 march 2011 31 march 2010
increase  
£m
decrease 
£m
increase 
£m
decrease 
£m
increasedecrease in medical benefits current service and interest cost 1 1 1 1
increasedecrease in medical benefits obligation  9 7 8 7
c amounts recognised in the income statement
pension benefits
medical 
benefits 
£m
total 
£m year to 31 march 2011
uk 
£m
us 
£m
others 
£m
total 
£m
current service cost  
  charged to operating profit 2 5 1 8 3 11
past service cost – 1 – 1 – 1
curtailment benefit 1 – – 1 – 1
total charged to operating profit 1 6 1 8 3 11
interest cost 47 22 2 71 5 76
expected return on plan assets 52 18 2 72 – 72
creditedcharged to finance expense 5 4 – 1 5 4
total 4 10 1 7 8 15
pension benefits
medical 
benefits 
£m
total 
£m year to 31 march 2010
uk 
£m
us 
£m
others 
£m
total 
£m
current service cost  
  charged to operating profit 3 5 1 9 2 11
exceptional items note 7
– negative past service cost 32 – – 32 – 32
– curtailment benefit 10 – – 10 – 10
total creditedcharged to operating profit 39 5 1 33 2 31
interest cost 46 22 2 70 6 76
expected return on plan assets 42 13 2 57 – 57
charged to finance expense 4 9 – 13 6 19
total 35 14 1 20 8 12
current service costs are presented in staff costs note 9 expected return on plan assets and interest cost are presented in net finance  
expense note 10
d amounts recognised in the statement of financial position
pension benefits
uk us others total
at 31 march 2011
 of 
plan 
assets £m
 of 
plan 
assets £m
 of 
plan 
assets £m
 of 
plan 
assets £m
medical 
benefits 
£m
total 
£m
fair value of plan assets
– equities 38 349 53 145 35 18 41 512 – 512
– bonds 47 430 30 81 44 23 43 534 – 534
– property and other 15 140 17 48 21 11 16 199 – 199
919 274 52 1 245 – 1 245
present value of funded obligations 823 366 55 1 244 – 1 244
present value of unfunded obligations – 42 – 42 97 139
unrecognised asset due to surplus restriction – – 1 1 – 1
net assetliability recognised in the 
  statement of financial position 96 134 4 42 97 139
disclosed in the statement  
of financial position as
– retirement benefit surplus 102 – 1 103 – 103 
– retirement benefit deficits 6  134  5  145 97 242 
shareholder information
business review governance financial statements 102   tate  lyle annual report 2011
notes to the consolidated financial statements
30 retirement benefit obligations continued
pension benefits
uk us others total
at 31 march 2010
 of 
plan 
assets £m
 of 
 plan 
assets £m
 of 
 plan 
assets £m
 of 
 plan 
assets £m
medical 
benefits 
£m
total 
£m
fair value of plan assets
– equities 29 249 54 131 32 16 34 396 – 396
– bonds 34 301 29 72 44 22 34 395 – 395
– property and other 37 327 17 42 24 12 32 381 – 381
877 245 50 1 172 – 1 172
present value of funded obligations 872 357 57 1 286 – 1 286
present value of unfunded obligations – 42 – 42 101 143
net assetliability recognised in the 
  statement of financial position 5 154 7 156 101 257
disclosed in the statement  
of financial position as
– retirement benefit surplus 15 – 1 16 – 16
– retirement benefit obligations 10 154 8 172 101 273
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 
benefits 
£m
total 
£m liabilities
uk 
£m
us 
£m
others 
£m
total 
£m
at 1 april 2009 687 355 50 1 092 94 1 186
total service cost 3 5 1 9 2 11
negative past service cost 32 – – 32 – 32
curtailment benefits 10 – – 10 – 10
interest cost 46 22 2 70 6 76
actuarial loss 229 55 8 292 13 305
benefits paid 51 22 2 75 5 80
exchange – 16 2 18 9 27
at 31 march 2010 872 399 57 1 328 101 1 429
total service cost 2 5 1 8 3 11
past service cost – 1 – 1 – 1
curtailment benefits 1 – – 1 – 1
interest cost 47 22 2 71 5 76
actuarial gainloss 48 27 – 21 1 22
benefits paid 49 23 2 74 5 79
businesses sold – – 2 2 – 2
exchange – 23 1 24 6 30
at 31 march 2011 823 408 55 1 286 97 1 383
pension benefits
medical 
benefits 
£m
total 
£m assets
uk 
£m
us 
£m
others 
£m
total 
£m
at 1 april 2009 732 198 45 975 – 975
expected return on assets 42 13 2 57 – 57
actuarial gain 141 55 5 201 – 201
contributions paid by employer 13 12 2 27 5 32
benefits paid 51 22 2 75 5 80
exchange – 11 2 13 – 13
at 31 march 2010 877 245 50 1 172 – 1 172
expected return on assets 52 18 2 72 – 72
actuarial gain 21 16 – 37 – 37
contributions paid by employer 18 32 2 52 5 57
benefits paid 49 23 2 74 5 79
exchange – 14 – 14 – 14
unrecognised asset due to surplus restriction – – 1 1 – 1
at 31 march 2011 919 274 51 1 244 – 1 244 tate  lyle annual report 2011   103
30 retirement benefit obligations continued
f analysis of actuarial gainslosses recognised in the consolidated statement of comprehensive income
31 march
2011 
£m
2010
£m
difference between the actual return and the expected return on plan assets 37 201
experience gains arising on scheme liabilities 12 –
changes in assumptions underlying the present value of scheme liabilities 10 305
unrecognised asset due to surplus restriction 1
–
actuarial gainslosses recognised in the consolidated statement of comprehensive income 58 104
cumulative actuarial loss recognised in the consolidated statement of  comprehensive income 101 159
deferred tax taken directly to equity on retirement benefit obligations was £19 million charge to equity 2010 – £29 million credit to equity
g history of the plans and experience adjustments
2011  
£m
2010  
£m
2009  
£m
2008  
£m
2007  
£m
present value of defined benefit obligation 
  and medical benefits 1 383 1 429 1 186 1 203 1 317
fair value of plan assets 1 244 1 172 975 1 112 1 188
net deficit 139 257 211 91 129
experience adjustments on plan liabilities 
– gainloss 12 – 18 9 25
experience adjustments on plan assets  
– gainloss 37 201 247 69 3
all experience adjustments are recognised directly in equity net of related tax see the consolidated statement of comprehensive income
31 provisions for other liabilities and charges
insurance 
funds
£m
restructuring 
and closure
provisions
£m
other  
provisons
£m
total
£m
at 1 april 2009 12 7 13 32
charged to the income statement 3 56 – 59
utilised in the year 2 21 1 24
exchange and other movements 1 – 3 4
at 31 march 2010 12 42 9 63
charged to the income statement 5 28 16 49
credited to the income statement 2 20 1 23
utilised in the year 2 13 7 22
exchange and other movements – 2 – 2
at 31 march 2011 13 35 17 65
31 march
2011 
£m
2010
£m
provisions are expected to be utilised as follows
– within one year 44 26
– after more than one year 21 37
total 65 63
insurance funds represent amounts provided by the group’s captive insurance subsidiary in respect of the expected level of insurance claims 
these provisions are expected to be utilised within five years
the restructuring and closure provisions charged during the year primarily relate to the implementation of a common global isit platform and 
additional closure and other restructuring costs relating to the food systems business within the speciality food ingredients segment the amount 
utilised during the year primarily relates to the decision to mothball the sucralose manufacturing facility in mcintosh alabama in addition during 
the year the group charged to the income statement an exceptional provision of £25 million in respect of onerous contracts relating to the future 
obligations of the plant at fort dodge iowa as a result of the disposal in march 2011 £20 million of the resultant provision was no longer required 
and was reversed these provisions are expected to be utilised within two years
other provisions primarily relate to group legal matters and costs associated with the disposal of the sugars segment these provisions are 
expected to be utilised within 5 years
the charge to the income statement in relation to the unwinding of discounts was £2 million 2010 – £nil
shareholder information
business review governance financial statements 104   tate  lyle annual report 2011
notes to the consolidated financial statements
32 change in working capital
31 march
2011 
£m
2010
£m
increasedecrease in inventories 121 99
decrease in receivables 1 78
increase in payables 88 39
increasedecrease in derivative financial instruments excluding debtrelated derivatives 7 10
decrease in provisions for other liabilities and charges 16 19
decrease in retirement benefit obligations 46 21
increasedecrease in working capital continuing operations 101 186
excluded from the movement in retirement benefit obligations is an actuarial gain of £58 million 2010 – actuarial loss £104 million
33 cash and cash equivalents
31 march
2011 
£m
2010
£m
cash at bank and in hand 153 142
shortterm bank deposits 501 362
total 654 504
the effective interest rate on shortterm deposits was 04 2010 – 04 with an average maturity of 12 days 2010 – 6 days
the carrying amount of cash and cash equivalents are denominated in the following currencies
31 march
2011 
£m
2010
£m
euro 55 136
us dollar 415 322
sterling 132 2
other 52 44
total 654 504
34 net debt
the components of the group’s net debt are as follows
31 march
notes
2011 
£m
2010
£m
noncurrent borrowings 28 887 1 119
current borrowings and overdrafts 28 227 190
debtrelated derivative instruments 20 4 9
cash and cash equivalents 33 654 504
net debt 464 814
derivative financial instruments presented within assets and liabilities in the statement of financial position of £1 million net asset comprise net 
debtrelated instruments of £4 million liability and net nondebtrelated instruments of £5 million asset 2010 – £7 million net asset comprising net 
debtrelated instruments of £9 million liability and net nondebtrelated instruments of £16 million asset tate  lyle annual report 2011   105
34 net debt continued
net debt is denominated in the following currencies 31 march
2011 
£m
2010
£m
euro 162 161
us dollar 458 620
sterling 131 60
other 25 27
total 464 814
movements in the group’s net debt are as follows
2011 
£m
2010
£m
at 1 april 814 1 231
increase in cash and cash equivalents in the year 168 80
cash outflow from net decrease in borrowings 147 267
debt transferred on disposal of businesses 8 –
trade finance recognised as debt – 16
fair value and other movements – 7
exchange 27 79
decrease in net debt in the year 350 417
at 31 march 464 814
 included in the cash outflow from net decrease in borrowings is an amount of £16 million 2010 – £45 million that is included in net cash used in 
financing activities from discontinued operations
35 contingent liabilities 31 march
2011 
£m
2010
£m
trade guarantees 1 13
as at 31 march 2010 trade guarantees included £13 million in relation to discontinued operations
in addition to the above in 2010 we had guaranteed the obligations of certain subsidiaries and joint ventures to payment agencies in connection 
with restructuring aid the group’s share of these guarantees were £6 million
other trade guarantees have been given in the normal course of business by the group at both 31 march 2011 and 31 march 2010 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
while 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
sale of eu sugars
the sale of eu sugars to american sugar refining inc completed on 30 september 2010 the consideration after working capital adjustments was 
£227 million subject to closing adjustments arising from the agreement of post completion statements the process to reach such agreement is 
ongoing and items totalling £54 million remain outstanding and are expected to be submitted for adjudication to an independent expert these items 
relate to the impact of major turbulence in the supply of raw sugar to the eu during the period prior to closing which resulted in an increase in certain 
rolling reexport commitments of the business arising under the eu sugar regime the group believes that its position is fully supported and as such 
will be robustly defended no provision in respect of outstanding items has been recorded
36 commitments
capital commitments 31 march
2011 
£m
2010
£m
commitments for the acquisition of property plant and equipment 24 8
operating lease arrangements
operating lease payments represent rentals payable by the group for certain of its land buildings plant and equipment certain operating lease 
agreements allow for renewal at the end of the original term at the option of the group
shareholder information
business review governance financial statements 106   tate  lyle annual report 2011
notes to the consolidated financial statements
36 commitments continued
at the balance sheet date the group has outstanding commitments under noncancellable operating leases which fall due as follows
31 march
2011 
£m
2010
£m
within one year 24 31
later than one year and no later than five years 68 84
after five years 81 80
total 173 195
37 acquisitions and disposals
acquisitions
during the year ended 31 march 2008 the group acquired 80 of the issued share capital of gc hahn  co hahn from georg hahn 
familien gmbh the hahn family as the group effectively bears all the risks and rewards for 100 of this business no noncontrolling interest is 
recognised in the group’s financial statements 
the acquisition agreement allowed for the group to acquire the remaining 20 of the issued share capital of hahn through put and call options 
during the year to 31 march 2010 a put option was exercised for 15 of the issued share capital for a total consideration of £21 million which 
was paid by the group on 31 march 2010 at 31 march 2011 deferred consideration of £7 million relating to the remaining 5 of the issued share 
capital is recognised in trade and other payables note 27
disposals
eu sugars and molasses disposal
during the year the group completed the disposal of eu sugars to american sugar refining inc the disposal comprised an asset sale of the 
thames sugar refinery and its associated businesses in london and a share sale of alcantara empreendimentos sgps sa tate  lyle norge as 
and eridania tate  lyle spa total consideration of £227 million remains subject to finalisation of post completion statements note 35
during the year the group also completed the disposal of molasses to wr barnett ltd total consideration was £66 million subject to finalisation 
of post completion statements the group incurred £4 million of costs associated with the disposal 
the calculation of the result on disposal is shown below
31 march 2011
eu sugars 
£m
molasses 
£m
total 
£m
goodwill and intangible assets 1 2 3
property plant and equipment 203 14 217
investment in associates 2 – 2
availableforsale financial assets 1 – 1
derivative financial instruments – assets 18  7  25 
inventories 72  35  107 
trade and other receivables 66  42  108 
trade and other payables 53 33 86
derivative financial instruments – liabilities 15 3 18
retirement benefit obligation 2 – 2
cash and cash equivalents 5  5  10 
borrowings 5 3 8
taxation 1 2 3
total assets disposed 292 64 356
non controlling interests disposed – 5 5
net assets disposed 292 59 351
cash received during the year 225  65  290 
receivable at 31 march 2011 2 1 3 
total consideration 227 66 293
other items
disposal costs 4 4 8
recycling of cash flow hedge reserve 3 – 3 
exchange differences transferred from equity 11  9  20 
lossgain on disposal 55 12 43
cash flows
cash consideration 225  65  290 
cash disposed 5 5 10
cash inflow in the year 220  60  280  tate  lyle annual report 2011   107
37 acquisitions and disposals continued
international sugar trading
in the year to 31 march 2009 the group disposed of its international sugar trading business to bunge limited bunge for total consideration 
net of disposal costs of £57 million following agreement of completion adjustments the group repaid £26 million to bunge during the year to 
31 march 2010 
38 assets and liabilities classified as held for sale 
on 20 april 2011 the group has entered into a conditional contract to dispose of vietnam sugar to th milk food joint stock company the group 
is committed to the disposal of its other remaining businesses within the legacy sugars division principally tate  lyle gadot manufacturing and 
tate  lyle israel limited these businesses have been disclosed as discontinued operations note 12 and the assets and liabilities as at 31 march 
2011 are shown in the table below 
assets and liabilities as at 31 march 2011 are shown as held for sale as follows
31 march
2011 
£m
2010
£m
assets
intangible assets 2 – 
property plant and equipment 22 – 
inventories 17 – 
trade and other receivables 9 – 
availableforsale financial assets 17 18 
total assets held for sale 67 18 
liabilities
trade and other payables 5 – 
total liabilities held for sale 5 – 
39 post balance sheet events 
on 20 april 2011 the group announced the sale on a conditional basis of vietnam sugar to th milk food joint stock company for cash 
consideration of £33 million in addition to the group’s share of the value of working capital and net cash to be retained in the business  
the disposal is expected to be completed during the first half of the 2012 financial year
on 26 may 2011 the group took the decision to reopen the mothballed facility in mcintosh alabama and restart production of sucralose there 
the group estimates that the reopening process will take about 12 months and that production will commence in the first half of the financial year 
ending 31 march 2013 capital expenditure of around £13 million is anticipated before the plant can restart the decision will result in the reversal 
of impairment of around £50 million and the release of around £20 million of the mcintosh mothball provision at current exchange rates both the 
reversal of the impairment and the release of the provision will be recognised as exceptional items in the 2012 financial year
shareholder information
business review governance financial statements 108   tate  lyle annual report 2011
notes to the consolidated financial statements
40 related party disclosures
identity of related parties
the group has related party relationships with its subsidiaries joint ventures and associates the group’s pension schemes 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 comparative year
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 joint ventures before consolidation eliminations and with associates are as follows
31 march
continuing
2011 
£m
2010
£m
sales of goods and services
– to joint ventures and associates 150 111
purchases of goods and services
– from joint ventures and associates 221 174
receivables
– due from joint ventures and associates 15 18
payables
– due to joint ventures and associates 17 8
financing
– loans to joint ventures and associates 18 10
– deposits from joint ventures and associates 25 3
the group had no material related party transactions containing unusual commercial terms
the group provides guarantees in respect of banking facilities of a joint venture totalling £10 million 2010 – £21 million
key management
key management compensation is disclosed in note 9
41 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
2011 2010
average foreign exchange rates
£1  us 155 161
£1  € 119 113
31 march
2011 2010
year end foreign exchange rates
£1  us 160 152
£1  € 113 112
42 main subsidiaries and investments
subsidiaries based in the united kingdom
1 
 
 
type of business
percentage  
of equity 
attributable to 
tate  lyle plc
gc hahn  co limited
2
blending 100
tate  lyle holdings limited
3
holding company 100
tate  lyle industries limited holding company 100
tate  lyle international finance plc
3
inhouse treasury company 100
tate  lyle investments limited
3
holding company 100
tate  lyle llc holding company 100
1 registered in england and wales except tate  lyle llc which is registered in delaware usa
2  the group holds 95 of the issued capital of hahn and has the right to acquire the remaining 5 through put and call options however due to the structure of the acquisition 
agreement the group effectively bears all the risks and rewards for 100 of the business and therefore no minority interest is recognised
3 direct subsidiaries of tate  lyle plc tate  lyle annual report 2011   109
42 main subsidiaries and investments continued
subsidiaries operating overseas  
 
 
country of incorporation or registration company type of business
percentage  
of equity 
attributable to 
tate  lyle plc
argentina tate  lyle argentina sa cereal sweeteners  starches 
sucralose distribution 100
australia tate  lyle anz pty limited
2
sucralose distribution and blending 100
belgium tate  lyle services belgium nv holding company 100
bermuda tate  lyle management  finance limited management  finance 100
brazil tate  lyle brasil do sa
1
citric acid sucralose distribution 100
gc hahn  co estabilizantes e tecnologia  
para alimentos ltda
2
 
blending
 
100
chile tate  lyle chile commercial ltda cereal sweeteners  starches 
sucralose distribution 100
china tate  lyle trading shanghai limited sucralose distribution 100
gc hahn  co food stabilizer business  
shanghai ltd
2
 
blending
 
100
croatia gc hahn  co doo
2
blending 100
czech republic gc hahn  co stabilizacni technika sro
2
blending 100
france gc hahn  cie sarl
2
blending 100
germany gc hahn  co stabilisierungstechnik gmbh
2
blending 100
gc hahn  co cooperationsgeschaft mbh
2
holding company 100
cesalpinia germany gmbh blending 100
gibraltar tate  lyle insurance gilbraltar limited reinsurance 100
hong kong tate  lyle asia limited sucralose distribution 100
hungary gc hahn  co stabilizalastechnikai kft
2
blending 100
italy tate  lyle italia spa blending 100
israel tate  lyle gadot manufacturing sugar refining 65
tate  lyle israel limited sugar trading 100
lithuania uab litauen gc hahn  co
2
blending 100
mexico tate  lyle mexico s de rlde cv holding company 100
morocco tate  lyle morocco sa cereal sweeteners  starches 100
netherlands tate  lyle holland bv holding company 100
tate  lyle netherlands bv cereal sweeteners  starches 
sucralose distribution 100
nederlandse glucose industrie bv holding company 100
poland gc hahn  co t echnika stabilizowania spzoo
2
blending 100
singapore tate  lyle singapore pte ltd highintensity sweeteners 100
south africa tate  lyle south africa pty limited blending 100
spain gc hahn estabilizantes y tecnologia  
para alimentos
2
 
blending
 
100
ukraine gc hahn
2
blending 100
usa staley holdings llc holding company 100
tate  lyle custom ingredients llc blending 100
tate  lyle finance llc inhouse banking 100
tlhus inc holding company 100
tate  lyle ingredients americas llc cereal sweeteners  starches 100
tate  lyle sucralose llc highintensity sweeteners 100
tli holding llc inhouse banking 100
1 noncoterminous yearend
2  the group holds 95 of the issued capital of hahn and has the right to acquire the remaining 5 through a call option however due to the structure of the acquisition 
agreement the group effectively bears all the risks and rewards for 100 of the business and therefore no minority interest is recognised
shareholder information
business review governance financial statements 110   tate  lyle annual report 2011
notes to the consolidated financial statements
42 main subsidiaries and investments continued
joint ventures
  
 
 
country of incorporation or registration company type of business
percentage  
of equity 
attributable to 
tate  lyle plc
bulgaria amylum bulgaria ead
12
cereal sweeteners  starches 100  50
columbia sucromiles sa
2
citric acid 50
hungary hungrana kft
12
cereal sweeteners  starches 50  25
mexico almidones mexicanos sa
2
cereal sweeteners  starches 50
netherlands eaststarch cv holding company 50
slovakia amylum slovakia spol sro
1
cereal sweeteners  starches 100  50
turkey amylum nisasta as
1
cereal sweeteners  starches 100  50
usa dupont tate  lyle bio products company llc industrial ingredients 50
1 share capital held by eaststarch cv 
2 noncoterminous yearend
associates  
 
 
country of incorporation or registration company type of business
percentage  
of equity 
attributable to 
tate  lyle plc
thailand tapioca development corporation
1
starch production 333
1 indirect associates of tate  lyle plc
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 year ends are consolidated in the group financial statements using management accounts for the 
period to 31 march tate  lyle annual report 2011   111
43 reconciliation to adjusted information
as explained in note 1 adjusted information is presented as it provides both management and investors with valuable additional information  
on the performance of the business the following items are excluded from adjusted information
– exceptional items including profits and losses on disposals of businesses impairments and closure and restructuring provisions and
– amortisation of intangibles acquired through business combinations
the following table shows the reconciliation of the statutory information presented in the income statement to the adjusted information
year to 31 march 2011 year to 31 march 2010
£m unless otherwise stated reported
exceptional 
amortisation adjusted reported
exceptional 
amortisation adjusted
continuing operations
sales 2 720 – 2 720 2 533 – 2 533
operating profitloss 303 18 321 44 312 268
net finance expense 58 – 58 72 – 72
profitloss before tax 245 18 263 116 312 196
income tax expensecredit 49 – 49 95 136 41
noncontrolling interests – – – – – –
profitloss attributable to equity  
  holders of the company 196 18 214 21 176 155
basic eps pence 426 39 465 47 386 339
diluted eps pence 419 38 457 47 384 337
tax rate 197 185 819 208
discontinued operations
sales 590 – 590 1 074 – 1 074
operating lossprofit 45 43 2 50 22 28
net finance income – – – 1 – 1
lossprofit before tax 45 43 2 51 22 29
income tax creditexpense 16 19 3 11 5 6
noncontrolling interests 4 – 4 4 – 4
lossprofit attributable to equity  
  holders of the company 33 24 9 36 17 19
basic eps pence 73 54 19 80 37 43
diluted eps pence 72 53 19 80 37 43
total operations
sales 3 310 – 3 310 3 607 – 3 607
operating profit 258 61 319 6 290 296
net finance expense 58 – 58 71 – 71
profitloss before tax 200 61 261 65 290 225
income tax expensecredit 33 19 52 84 131 47
noncontrolling interests 4 – 4 4 – 4
profit attributable to equity  
  holders of the company 163 42 205 15 159 174
basic eps pence 353 93 446 33 349 382
diluted eps pence 347 91 438 33 347 380
tax rate 164 197 1292 209
shareholder information
business review governance financial statements 112   tate  lyle annual report 2011
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 2011 which comprise 
the parent company balance sheet and the notes to the parent 
company financial statements the financial reporting framework  
that has been applied in their preparation is applicable law and  
united kingdom accounting standards united kingdom generally 
accepted accounting practice
respective responsibilities of directors and auditors 
as explained more fully in the directors’ statement of responsibilities 
set out on page 59 the directors are responsible for the preparation of 
the parent company financial statements and for being satisfied that 
they give a true and fair view our responsibility is to audit and express 
an opinion on the parent company financial statements in accordance 
with applicable law and international standards on auditing uk 
and ireland those standards require us to comply with the auditing 
practices board’s ethical standards for auditors 
this report including the opinions has been prepared for and only  
for the company’s members as a body in accordance with chapter 
3 of part 16 of the companies act 2006 and for no other purpose 
we do not in giving these opinions 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
scope of the audit of the financial statements
an audit involves obtaining evidence about the amounts and 
disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material 
misstatement whether caused by fraud or error this includes an 
assessment of whether the accounting policies are appropriate to 
the parent company’s circumstances and have been consistently 
applied and adequately disclosed the reasonableness of significant 
accounting estimates made by the directors and the overall 
presentation of the financial statements in addition we read all the 
financial and nonfinancial information in the annual report 2011 to 
identify material inconsistencies with the audited financial statements 
if we become aware of any apparent material misstatements or 
inconsistencies we consider the implications for our report
opinion on financial statements 
in our opinion the parent company financial statements 
n	 	 give a true and fair view of the state of the parent company’s 
affairs as at 31 march 2011
n	 	 have been properly prepared in accordance with united kingdom 
generally accepted accounting practice and 
n	 	 have been prepared in accordance with the requirements  
of the companies act 2006 
opinion on other matters prescribed by the  
companies act 2006 
in our opinion 
n	 	 the part of the directors’ remuneration report to be audited  
has been properly prepared in accordance with the companies 
act 2006 and 
n	 	 the information given in the annual report 2011 for the financial 
year for which the parent company financial statements are 
prepared is consistent with the parent company financial 
statements 
matters on which we are required to report by exception 
we have nothing to report in respect of the following matters where 
the companies act 2006 requires us to report to you if in our opinion 
n	 	 adequate accounting records have not been kept by the parent 
company or returns adequate for our audit have not been 
received from branches not visited by us or 
n	 	 the parent company financial statements and the part of the 
directors’ remuneration report to be audited are not in agreement 
with the accounting records and returns or 
n	 	 certain disclosures of directors’ remuneration specified by law are 
not made or 
n	 	 we have not received all the information and explanations we 
require for our audit 
other matter 
we have reported separately on the group financial statements of 
tate  lyle plc for the year ended 31 march 2011 
paul cragg senior statutory auditor
for and on behalf of pricewaterhousecoopers llp
chartered accountants and statutory auditors 
london  
26 may 2011
note 
a   the maintenance and integrity of the tate  lyle plc website and any 
other electronic media used to present the financial statements is the 
responsibility of the directors the work carried out by the auditors does  
not involve consideration of these matters and accordingly the auditors 
accept no responsibility for any changes that may have occurred to the 
financial statements since they were initially presented on the website  
or any other electronic media
b  legislation in the united kingdom governing the preparation and 
dissemination of financial statements may differ from legislation in  
other jurisdictions tate  lyle annual report 2011   113
year to 31 march
notes
2011
£m
2010
£m
fixed assets
tangible assets 2 3 2
investments in subsidiary undertakings 3 1 184 1 416
investment in associate 4 1 1
1 188 1 419
current assets
debtors 
– amounts falling due within one year 5 326 399
– amounts falling due after more than one year 5 – 1
326 400
creditors – due within one year 6 71 61
net current assets 255 339
total assets less current liabilities 1 443 1 758
creditors – amounts falling due after more than one year 7 188 490
provisions for liabilities and other charges 9 3 1
net assets 1 252  1 267
capital and reserves
called up share capital 12 117 115
share premium account 13 406 405
capital redemption reserve 13 8 8
profit and loss account 13 721 739
shareholders’ funds 1 252 1 267
the parent company financial statements were approved by the board of directors on 26 may 2011 and signed on its behalf by
javed ahmed tim lodge  directors
registered no 76535
the notes on pages 114 to 117 form part of these parent company financial statements
parent company balance sheet
shareholder information
business review governance financial statements 114   tate  lyle annual report 2011
1 parent company accounting policies
accounting basis 
the parent company financial statements are prepared under the 
historical cost convention in accordance with the companies act 
2006 and applicable uk accounting standards as permitted by 
section 4082 of the companies act 2006 the company’s profit and 
loss account and statement of total recognised gains and losses are 
not presented in these financial statements the profit for the year 
before dividends dealt with in the financial statements of the company 
amounted to £44 million 2010 – £83 million the tate  lyle plc 
consolidated financial statements for the year ended 31 march  
2011 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
new uk standards and interpretations adopted
the following new standards amendments and interpretations were 
adopted by the company in the year adoption had no effect on the 
results financial position of the company or its disclosures
–  amendment to frs 25 financial instruments presentation – 
puttable financial instruments and obligations arising on liquidation
–  amendment to frs 26 financial instruments recognition and 
measurement – eligible hedged items
– improvements to financial reporting standards
–  amendments to frs 29 financial instruments disclosures
–  amendment to frs 20 sharebased payment – group cash
settled sharebased payment transactions
–  amendment to frs 25 ias 32 financial instruments 
presentation on the classification of rights issues
–  uitf abstract 48 on accounting implications of the  
replacement of rpi with cpi
new uk standards and interpretations not adopted
the following amendments to financial reporting standards have 
been issued but have not yet been adopted by the company
–  frs 30 heritage assets
– improvements to financial reporting standards
– ssap 25 segmental reporting
– frs 8 related party disclosures
– frs 29 financial instruments disclosures
–  uitf abstract 47 ifric 19 extinguishing financial liabilities  
with equity instruments
the adoption of these amendments is not expected to have a material 
impact on the company’s profit for the year or equity the adoptions 
may affect disclosures in the company’s financial statements
tangible fixed assets
tangible fixed assets are stated at historic purchase cost less 
accumulated depreciation cost includes the original purchase price 
of the asset and the costs attributable to bringing the asset to its 
working condition for its intended use depreciation is provided on 
a straightline basis to write off the cost of tangible fixed assets over 
their estimated useful life the tangible fixed assets comprise plant and 
machinery and computer software which are 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
unless they are financed by foreign currency borrowings and 
designated as a fair value hedging relationship investments in 
subsidiaries and associates are shown at cost less amounts written 
off where there is a permanent diminution in value investments in 
shares in overseas undertakings that are financed by foreign currency 
borrowings and designated as a fair value hedging relationship are 
retranslated into pounds sterling at the exchange rate ruling at the 
balance sheet date and the resulting exchange gains and losses are 
recognised in the profit and loss account exchange gains and losses 
on the related foreign currency borrowings are also recognised in the 
profit and loss account in accordance with frs 23 the effects  
of changes in foreign exchange rates
an undertaking is regarded as a subsidiary undertaking if the 
company has control over its operating and financial policies
an undertaking is regarded as an associate if the company holds a 
participating interest and has significant influence but not control over 
its operating and financial policies significant influence generally exists 
where the company holds more than 20 and less than 50 of the 
shareholders’ voting rights
all loans and receivables to and from subsidiary undertakings are 
shown at cost less amounts written off where deemed unrecoverable
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 30 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 and are charged to the income statement as they 
are incurred
deferred tax
deferred tax is recognised on a full provision basis on timing 
differences between the recognition of gains and losses in the 
financial statements 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
monetary assets and liabilities in foreign currencies are translated into 
pounds sterling at the rates of exchange ruling on the last day of the 
financial period the closing rate profits and losses are translated into 
pounds sterling at the prevailing rate at the time of transaction and 
credited or charged to the profit and loss account
sharebased compensation
the company operates a number of equitysettled sharebased 
compensation plans details of the plans are included within note 26 
of the group financial statements 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
dividend distribution
final dividend distributions to the company’s equity holders are 
recognised as a liability in the group’s financial statements in the 
period in which the dividends are approved by the company’s 
shareholders while interim dividend distributions are recognised in  
the period in which the dividends are declared and paid where a  
scrip alternative is offered and taken the distribution is effected 
through an issue of bonus shares from the share premium account
notes to the parent company financial statements  tate  lyle annual report 2011   115
1 parent company accounting policies continued
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
2 tangible fixed assets
the net book value of tangible fixed assets of £3 million 2010 – £2 million comprises plant and machinery and computer software net book  
value comprises cost of £5 million 2010 – £4 million less accumulated depreciation of £2 million 2010 – £2 million
3 investments in subsidiary undertakings 
shares in 
subsidiary 
undertakings
£m
at 1 april 2010 1 416
increase – sharebased payments 3
impairment 232
reversal of impairment 13
exchange 16
at 31 march 2011 1 184 
shares in subsidiary undertakings are stated at cost or earliest ascribed value less amounts provided of £368 million 2010 – £149 million 
the impairment relates to the reassessment of the carrying value of a subsidiary after the payment of a dividend in favour of the company 
the reversal of impairment reflects an uplift to the recoverable amount of the company’s investment in tate  lyle ventures ltd and tate  lyle 
services belgium nv
4 investment in associate
the company holds a 166 interest in tapioca development corporation a company incorporated in thailand for book value of £1 million 
2010 – £1 million
5 debtors
31 march
2011 
£m
2010
£m
due within one year
current tax 3 16
amounts due from subsidiary undertakings 318 377
other debtors 4 5
prepayments and accrued income 1 1
total 326 399
the effective interest rate applicable to amounts due from subsidiary undertakings at 31 march 2011 is 20 2010 – 15 amounts due from 
subsidiary undertakings are receivable on demand
31 march
note
2011 
£m
2010
£m
due after more than one year
deferred tax 8 – 1
total – 1
6 creditors – due within one year
31 march
2011 
£m
2010
£m
amounts due to subsidiary undertakings 55 49
other creditors 8 4
accruals and deferred income 8 8
total 71 61
amounts due to subsidiary undertakings are repayable on demand
shareholder information
business review governance financial statements 116   tate  lyle annual report 2011
notes to the parent company financial statements 
7 creditors – due after more than one year
31 march
2011 
£m
2010
£m
amounts due to subsidiary undertakings note a 186 488
preference shares note b 2 2
total 188 490
a  the effective interest rate applicable to amounts owed to subsidiary undertakings at 31 march 2011 is 65 2010 – 65 amounts due to 
subsidiary undertakings at year end mature after more than one year 2010 – mature after more than two years
b  on a return of capital on a windingup the holders of 65 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 such matters
8 deferred tax
deferred tax charged to profit in the year was £1 million 2010 – £2 million
9 provisions for liabilities
restructuring 
£m
at 31 march 2010 1
charged to the income statement 8
utilised in the year 6
at 31 march 2011 3 
provisions primarily relate to restructuring as a result of the disposal of group businesses and are expected to be utilised within the next 12 months
10 contingent liabilities
31 march
2011 
£m
2010
£m
loans and overdrafts of subsidiaries and joint ventures 1 035 1 251
guarantees given in respect of drawn and undrawn loans and overdrafts by tate  lyle plc were £2479 million at 31 march 2011  
2010 – £2661 million
other trade guarantees have been given in the normal course of business by tate  lyle plc at both 31 march 2011 and 31 march 2010  
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
11 financial commitments
annual payments made by the company in the year ended 31 march 2011 in respect of operating leases that expire within one year were  
£3 million 2010 – £3 million that expire later than one year and no later than five years
12 called up share capital
allotted called up and fully paid equity share capital
31 march 2011 31 march 2010
shares £m shares £m
at 1 april 460 575 700 115 460 012 801 115
allotted under share option schemes 217 743 – 48 287 –
scrip dividend shares issued 7 317 897 2 514 612 –
at 31 march 468 111 340 117 460 575 700 115
treasury shares and shares held in esop trust
as at 31 march 2011 the group held 175328 shares 2010 – 512490 shares in treasury
during the year 337162 shares 2010 – 816012 shares were released from treasury to satisfy share options exercised 
the shares held in treasury at 31 march 2011 represented less than 01 2010 – 01 of the share capital at the year end and have a nominal 
value of less than £01 million 2010 – £01 million
as at 31 march 2011 the group held 2713694 shares 2010 – 3141100 shares in an esop trust at a nominal value of 25p and a market value 
of 5775p 2010 – 4542p tate  lyle annual report 2011   117
13 reconciliation of movements in shareholders’ funds
ordinary 
shares
£m
share 
 premium 
account
£m
capital 
redemption 
reserve
£m
profit and 
 loss account
£m
total
£m
at 1 april 2010 115 405 8 739 1 267
profit for the year – – – 44 44
proceeds from shares issued – 1 – 1 2
sharebased payments – – – 9 9
ordinary dividends paid – – – 105 105
issue of shares for scrip dividend 2 – – 33 35
at 31 march 2011 117 406 8 721 1 252
ordinary shares carry the right to participate in dividends and each share entitles the holder to one vote on matters requiring shareholder approval
the amount available for the payment of dividends by the company at 31 march 2011 was £721 million 2010 – £714 million
during the year ended 31 march 2011 shareholders were given the option to receive the final dividend relating to the prior year and the interim 
dividend relating to the current year in the form of a scrip issue on 30 july 2010 and 7 january 2011 the group issued 5716625 shares and 
1601272 shares respectively for scrip at a nominal value per share of 25p and a total cash equivalent value of £35 million
14 related parties
as permitted by frs 8 related party disclosures disclosure of related party transactions with other companies controlled by tate  lyle plc is not 
provided there were no reportable transactions with other related parties other than providing guarantees in respect of banking facilities of a joint 
venture totalling £10 million 2010 – £21 million
15 profit and loss account disclosures
as permitted by section 4082 of the companies act 2006 the company has not presented its own profit and loss account
the company employed 98 staff including directors 2010 – 94 and the total staff costs are shown below
31 march
2011 
£m
2010
£m
wages and salaries 14 11
social security 2 1
retirement benefits 1 1
share based payments 6 3
total 23 16
directors’ emoluments disclosures are provided in the directors’ remuneration report on pages 44 to 56 of this annual report and in note 9 of the 
group financial statements
in addition 5108263 outstanding share options attributable to employees and directors of the company as at 31 march 2011 are shown below
year issued
number of 
shares
subscription 
prices 
pence
dates normally 
exercisable
sharesave scheme – 35 year options 2006 4 847 51800 20112012
2006 456 71600 2012
2007 1 911 53100 20122013
2007 26 073 39500 20112013
2008 5 029 40800 20112014
2008 52 131 37600 20122014
2009 39 613 41800 20132015
2011 21 700 48800 20142016
performance share plan 2008 222 115 – 20112017
2008 326 216 – 20122018
2009 677 307 – 20122018
2010 1 066 797 – 20132019
executive share option scheme 2003 136 216 33575 20062013
2004 339 904 32500 20072014
javed ahmed – compensatory awards 2009 689 019 – 20112017
2009 359 488 – 20122018
javed ahmed – long term incentive awards 2009 659 609 – 20122018
2010 473 042 – 20132019
deferred bonus share plan 2008 6 790 – 20112017
16 dividends
details of the company’s dividends are set out in note 14 of the group financial statements
shareholder information
business review governance financial statements 118   tate  lyle annual report 2011
fiveyear review financial years to 31 march
ifrs
share information 
pence per 25p ordinary share 2007
1
2008
1
2009
1
2010
1
2011
1
closing share price 5750 5400 2605 4542 5775
earnings per share
– basic
2
443 409 142 33 353
–  basic before amortisation and exceptional items
2
487 411 378 382 446
earnings per share
– diluted
2
436 404 141 33 347
–  diluted before amortisation and exceptional items
2
479 406 375 380 438
dividend 215 226 229 229 237
closing market capitalisation £ million 2 816 2 484 1 198 2 092 2 665 
business ratios
interest cover – times 84 78 61 58 69
profit before interest exceptional items and amortisation 
  divided by net finance expense
23
gearing 90 110 122 95 48
net borrowings as a percentage of total net assets
2
net margin 92 87 68 82 96
profit before interest exceptional items and amortisation  
as a percentage of sales
2
return on net operating assets 189 155 127 141 202
profit before interest and exceptional items as a percentage  
  of average net operating assets
2
dividend cover – times
basic earnings per share after exceptional items and  
  amortisation divided by dividends per share
2
21 18 06 01 15
basic earnings per share before exceptional items and  
  amortisation divided by dividends per share
2
23 18 17 17 19 
1 ‘amortisation’ relates to the amortisation of acquired intangible assets
2  these ratios have been calculated using the results of both continuing and discontinued operations 
3 interest cover has been calculated using the same basis as set out in the group’s external bank covenants
results presented above are for years to 31 march and have been calculated using the group’s published interim and fullyear financial statements tate  lyle annual report 2011   119
ifrs
2007
1
2008
1
2009
1
2010
1
2011
1
employment of capital £m £m £m £m £m
goodwill intangible assets and property plant and equipment 1 449 1 516 1 922 1 548 1 175
other noncurrent assets 25 22 19 21 24
working capital 445 576 394 45 140
net assets held for sale 61 – 28 18 62
net operating assets 1 980 2 114 2 363 1 632 1 401
net borrowings 900 1 041 1 231 814 464
net liabilitiesassets for dividends and tax 85 123 119 36 36
total net assets 995 950 1 013 854 973
capital employed
called up share capital 122 114 115 115 117
reserves 838 820 872 712 833
960 934 987 827 950
noncontrolling interests 35 16 26 27 23
 995 950 1 013 854 973
profit summary
1
sales 1 707 1 995 2 505 2 533 2 720
group operating profit
before exceptional items and amortisation
2
250 260 286 268 321
amortisation of acquired intangible assets 9 12 15 14 13
exceptional items 13 59 110 298 5
group operating profitloss 228 189 161 44 303
net finance expense 39 45 53 72 58
profitloss before tax 189 144 108 116 245
income tax expensecredit 66 72 11 95 49
profitloss after tax 123 72 97 21 196
noncontrolling interests 3 10 1 4 4
discontinued operations 94 112 31 40 29
profit for the year attributable to equity holders  
of the company 214 194 65 15 163 
profit before tax exceptional items 
  and amortisation
2
210 215 233 196 263 
earningsloss per share attributable to the equity holders of 
the company from continuing operations
– basic 249 173 210 47 426
– diluted 244 171 209 47 419 
1  profit summary for the years ended 31 march 2007 to 31 march 2010 has been restated to reflect the disposal of eu sugars the sale of the molasses businesses and the 
intention to sell the remaining businesses in the legacy sugars segment these businesses classed as discontinued operations are excluded from all years
2 ‘amortisation’ relates to the amortisation of acquired intangible assets
shareholder information
business review governance financial statements 120   tate  lyle annual report 2011
information for investors
dividends on ordinary shares
two payments were made during the tax year 20102011 as follows
payment date
dividend  
description 
dividend  
per share
30 july 2010 final 2010 161p
7 jan 2011 interim 2011 68p
services
shareholding enquiries
queries on shareholdings should be addressed to tate  lyle’s 
registrar equiniti
equiniti limited
aspect house 
spencer road
lancing
west sussex 
bn99 6da 
tel  0871 384 2063
†
 for uk calls 
44 0121 415 0235 for calls from outside the uk
wwwequiniticom
wwwshareviewcouk
†  calls to 0871 numbers are charged at 8 pence per minute from a bt 
landline other telephone providers’ costs may vary lines are open from 
830am to 530pm uk time monday to friday
individual savings account isa
tate  lyle’s ordinary shares can be held in an isa for information 
please call the equiniti isa helpline on 0871 384 2244
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
6½ cumulative preference shares 4350p
tate  lyle american depositary shares adss
the company’s shares trade in the usa 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 on 
the otcqx exchange under the ticker symbol tatyy each ads is 
equivalent to four ordinary shares for more information contact  
the bank of new york mellon at
the bank of new york mellon
shareowner services
po box 358516
pittsburgh
pa 152528516
tel  1 888 269 2377 for us calls 
1 201 680 6825 for calls from outside the usa
on 10 april 2007 tate  lyle was approved for the international 
premierqx tier of international otcqx this provides a gateway to 
us securities markets for international companies that are listed on a 
qualified international exchange tate  lyle’s adr is identified with an 
international premierqx logo and investors can find current financial 
information and other disclosure on wwwotcqxcom and  
wwwpinksheetscom
financial calendar 
2011 annual general meeting 28 july 2011
announcement of halfyear results for 
  six months to 30 september 2011 3 nov 2011
1
announcement of fullyear results for 
  the year ending 31 march 2012 31 may 2012
1
2012 annual general meeting 26 july 2012
1
1 provisional date
dividend on ordinary shares
2011 final 2012 interim 2012 final
announced 27 may 2011 3 nov 2011
1
31 may 2012
1
payment date 5 aug 2011
2
6 jan 2012
1
3 aug 2012
2
1 provisional date
2 subject to the approval of shareholders
dividends on 6½ cumulative preference shares 
paid 31 march and 30 september
electronic communications
shareholder documents are only sent in paper format to shareholders 
who have elected to receive documents in this way this approach 
enables the company to reduce printing and distribution costs and its 
impact on the environment
shareholders who have not elected to receive paper copies are sent a 
notification whenever shareholder documents are published to advise 
them how to access the documents via the tate  lyle website 
wwwtateandlylecom shareholders may also choose to receive this 
notification via email with a link to the relevant page on the website 
shareholders who wish to receive email notification should register 
online at wwwshareviewcouk using their reference number that is 
either on their share certificate or other correspondence
find out more about tate  lyle  
at wwwtateandlylecom  directors’ report
 business review
 1  performance highlights
 2  our business
 4  chairman’s statement
 5  chief executive’s review
 8   strategy and key performance indicators
 10 group financial results
 12 speciality food ingredients
 15 bulk ingredients
 18  innovation and commercial development
 19  risk management
 22 additional financial information
 26 corporate responsibility
  governance
 32  board of directors
 34 executive management
 35  corporate governance
 44  directors’ remuneration report
 57   other statutory and governance information
 59  directors’ statement of responsibilities
   financial statements and  
 shareholder information
  financial statements
 60  independent auditors’ report to the  
members of tate  lyle plc 
 61  consolidated income statement 
 62  consolidated statement of  
comprehensive income 
 63  consolidated statement of financial position 
 64  consolidated statement of cash flows 
 65  consolidated statement of changes in 
shareholders’ equity
 66  notes to the consolidated financial 
statements 
 112  parent company financial statements 
  shareholder information
 118 fiveyear r eview
 120 information for investors
basis of preparation
unless stated otherwise the group’s financial 
statements are prepared in accordance with 
international financial reporting standards  
ifrss as adopted by the eu
adjusted operating profit adjusted profit  
before tax and adjusted earnings per share
unless stated otherwise adjusted operating  
profit adjusted profit before tax and adjusted 
earnings per share in this annual report and 
accounts exclude discontinued operations and  
are before exceptional items and amortisation  
of acquired intangible assets
amortisation
unless stated otherwise the use of  
‘amortisation’ or ‘amortisation of acquired 
intangibles’ on pages 1 to 59 in this annual report 
relates to the amortisation of intangible assets 
acquired through business combinations
continuing operations
unless stated otherwise all comments in this 
annual report and accounts refer to the continuing 
operations adjusted to exclude exceptional items  
and amortisation of acquired intangible assets  
a reconciliation of reported and adjusted 
information is included in note 43 on page 111
cautionary statement
please read the full cautionary and nonreliance 
statements which can be found on the inside  
back cover
definitions
in this report ‘company’ means tate  lyle plc 
‘tate  lyle’ or ‘group’ means tate  lyle plc  
and its subsidiary and jointventure companies
trademarks
splenda
®
 and the splenda
®
 logo are  
trademarks of mcneil nutritionals llc 
the dupont oval logo dupont
™
 and sorona
®
  
are trademarks or registered trademarks of  
e i du pont de nemours and company
contents
this report is available online at  
wwwtateandlylecomannualreport2011 
we are always reviewing the way that we 
communicate with our shareholders and this 
year we have also produced this report as 
an ipad app which you can download for 
free from the appstore
   these sections make up the directors’ report this part 
of the annual report sets out the information on the 
group’s principal activities together with a review of the 
development and performance of the group including 
financial performance in accordance with section  
417 of the companies act 2006
tate  lyle annual report 2011   121
nonreliance statement
this annual report and accounts has 
been prepared solely to provide additional 
information to shareholders to assess the 
group’s strategy and the potential of that 
strategy to succeed and should not be 
relied upon by any other party or for 
any other purpose
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 may 
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 2011 
more information about tate  lyle can be 
found on our website at wwwtateandlylecom
environmental statement
this report is printed on ‘look’ paper and 
has been independently certified on behalf  
of the forest stewardship council fsc
printed at st ives westerham press ltd 
iso14001 fsc certified and carbonneutral
®
registered office
tate  lyle plc
sugar quay 
lower thames street
london ec3r 6dq
tel 44 020 7626 6525
fax 44 020 7623 5213
company number 76535
wwwtateandlylecom
credits
designed typeset and produced by
wwwberghindjosephcom
photography by david rees
business review governance financial statements
shareholder information tate  lyle annual report 2011
wwwtateandlylecom annual report 201 1
focus fix grow


Summary:
 shareholder information
business review governance financial statements
tate  lyle annual report 2011   5
the net finance expense from continuing 
operations decreased from £72 million to 
£58 million principally as a result of lower pension 
interest expense adjusted profit before tax was 
up 34 32 in constant currency to £263 million 
2010 – £196 million reflecting the strong operating 
performance and reduction in net interest charge 
adjusted diluted earnings per share increased by 
36 34 in constant currency to 457p benefiting 
from improved operating performance and a lower 
effective tax rate of 185 2010 – 208  
 
 
 
 
 
 
 
 
 
 
 
exceptional items on continuing and
discontinued operations totalled a charge of 
£48 million 2010 – £276 million within continuing 
operations there was a net £10 million gain on the 
sale of the fort dodge facility and £15 million of 
costs associated with the business transformation 
programme within discontinued operations a  
loss of £55 million was booked on the disposal  
of the eu sugar refining operations eu sugars 
which remains subject to closing adjustments  
and adjudication as discussed in note 35 and  
a gain of £12 million on the disposal of molasses 
balance sheet
we continue to focus on managing our working 
capital closely resulting in our average quarterly 
cash conversion cycle falling from 45 days  
to 34 days
the key performance indicators kpis of our 
financial strength the ratio of net debt to earnings 
before interest tax depreciation and amortisation 
ebitda and interest cover remain well within our 
internal targets at 31 march 2011 the net debt 
to ebitda ratio was 11 times 2010 – 18 times 
against our target of 20 times interest cover on 
total operations at 31 march 2011 was 69 times 
2010 – 58 times again ahead of our minimum 
target of 50 times
results for the continuing operations are adjusted
to exclude exceptional items and amortisation  
of acquired intangible assets except where 
specifically stated to the contrary this commentary
relates only to the adjusted results for the 
continuing operations a reconciliation of statutory 
and adjusted information is included at note 43
overview of group’s financial performance
tate  lyle performed well in the year achieving 
steady volume growth across a number of our 
markets very strong returns from coproducts  
and lower sucralose manufacturing costs
sales for the year were £2720 million 
2010 – £2533 million an increase of 7  
5 in constant currency on the prior year  
in speciality food ingredients sales increased 
by 2 2 in constant currency to £805 million 
2010 – £788 million with sales volumes up by 
7 the rate of sales growth was impacted by 
reduced selling prices for splenda
®
 sucralose 
reflecting our strategy of securing longterm 
volume incentive contracts with our customers 
within bulk ingredients sales increased by 
10 7 in constant currency to £1915 million 
2010 – £1745 million 
adjusted operating profit increased by 20 
17 in constant currency to £321 million 
2010 – £268 million in speciality food 
ingredients adjusted operating profit increased  
by 26 25 in constant currency to £206 million 
2010 – £163 million driven by increased sales 
volumes operational leverage improved product 
mix and lower splenda
®
 sucralose manufacturing 
costs the effect of exchange translation was to 
increase adjusted operating profit by £2 million 
in bulk ingredients adjusted operating profit 
increased by 15 11 in constant currency to 
£157 million 2010 – £136 million driven by volume 
growth very strong returns from coproducts and 
an improved performance from ethanol offset 
by lower margins in sweeteners and industrial 
starches higher corn prices particularly in the 
second half of the year resulted in an additional 
£16 million of coproduct returns compared to the 
prior year the effect of exchange translation was  
to increase adjusted operating profit by £5 million
central costs which include head office treasury 
and reinsurance activities increased by £11 million 
to £42 million reflecting the costs associated with 
strengthening the group’s senior management 
team costs associated with our financing portfolio 
and oneoff costs of £6 million in the first half 
relating to the review of the group’s activities
javed ahmed
chief executive
business review chief executive’s review
our objective remains to build a  
platform on which we can deliver  
steady and sustainable long term  
growth and value for shareholders  
we remain on track to deliver on  
this objective
in speciality food ingredients 
adjusted operating profit 
increased by 26 25 in 
constant currency  6   tate  lyle annual report 2011
the group’s balance sheet was strengthened 
significantly during the year net debt reduced  
by 43 to £464 million at 31 march 2011 
31 march 2010 – £814 million this improvement 
in net debt which builds upon the considerable 
reduction achieved in the prior year was driven 
by the disposals of eu sugars molasses and 
fort dodge resulting in a net cash inflow of 
£316 million and the underlying cash generated  
by the business
return on capital employed increased from 
136 to 206 as a result of increased profits 
a reduction in operating assets reflecting the 
writedown of fort dodge the reduced average 
levels of working capital within the business  
and exchange rate effects
dividend
the board is recommending a 5 increase in  
the final dividend to 169p 2010 – 161p making  
a full year dividend of 237p 2010 – 229p per 
share up 35 on the prior year subject to 
shareholder approval the proposed final dividend 
will be due and payable on 5 august 2011 to 
all shareholders on the register of members 
at 1 july 2011 in addition to the cash dividend 
option shareholders will also be offered a dividend 
reinvestment plan drip alternative the drip 
replaces the scrip alternative that was previously 
available to shareholders
 
 
 
 
 
 
 
 
 
 
 
safety
we have no higher priority than safety and are 
committed to providing safe and healthy working 
conditions for all our employees contractors and 
visitors whilst we are pleased that the safety 
performance at most of our locations improved 
in the 2010 calendar year and that our safety 
performance continues to compare favourably 
against the industry the group’s overall safety 
performance as detailed in the kpi table on pages 
8 and 9 deteriorated in 2010 having set ourselves 
very high standards we take any reduction in 
performance very seriously a detailed plan has 
been put in place to drive an improvement in  
safety performance which our global safety  
teams employees and contractors are working 
hard to embed across the group
focus fix grow update
as we set out in may 2010 tate  lyle’s  
strategy is to grow our speciality food ingredients 
business supported by cash generated from bulk 
ingredients to deliver on this strategy and to 
reinvigorate tate  lyle we have taken a number  
of steps during the year to ‘focus fix and grow’  
the business
focus
we have disposed of a number of businesses  
and assets to ensure that our resources are  
focused on delivering our strategy and maximising 
returns to shareholders during the year we sold 
eu sugars molasses fort dodge and after the 
yearend we announced the conditional sale of 
our vietnam sugar interests as a result of these 
disposals tate  lyle is a more focused less 
complex business with a reduced exposure  
to commodity markets
fix
the new operating model implemented on  
1 june 2010 based on two global business units 
speciality food ingredients and bulk ingredients 
supported by a global unit dedicated to driving 
growth innovation and commercial development 
and shared support services is being embedded 
this new operating model is simple and transparent 
and provides an efficient platform for future growth 
both organically and through bolton acquisition 
we have also taken steps to strengthen the 
customerfacing areas of our business – for 
example the commercial organisations of the 
speciality and bulk businesses have been  
separated and are now fully focused on  
serving their different end markets 
in may 2010 we announced two major twoyear 
initiatives to transform our operational capabilities – 
firstly to implement a common global isit platform 
and secondly to provide global support services 
through the use of shared service centres after 
a detailed and thorough planning process both 
initiatives were launched on 1 january 2011 and  
are making good progress following an evaluation 
of a number of different locations the decision was 
made to locate our global shared service centre 
in łód ´ z poland the new centre is expected to be 
operational by the end of 2011 with the various 
services to be provided migrated to the new centre 
in a phased process over a 12 to 15month period 
the new isit platform will also be implemented via 
a phased process starting in the first half of 2012 
building a highperformance culture is a key part 
of the ‘fix’ phase to help achieve this during the 
year we put in place a new global performance 
management system a new global sales incentive 
system and established common global metrics in 
areas such as working capital customer service 
and quality ensuring we have the right skills and 
talent in the business is also very important we 
are developing our high potential employees by 
providing them with more training and opportunities 
to learn particularly with international assignments 
and are also recruiting new staff both to fill skills 
gaps and to refresh our talent base 
the new process for capital investment planning 
and implementation has now been fully embedded 
within the organisation all new investments are 
now evaluated against clear strategic and financial 
criteria with greater scrutiny and clear execution 
milestones for approved investments
business review chief executive’s review
our new operating model is 
simple and transparent and 
provides an efficient platform 
for future growth  shareholder information
business review governance financial statements
tate  lyle annual report 2011   7
in our bulk ingredients division we are looking  
at ways to diversify our business by leveraging our 
fermentation expertise and facilities to partner with 
businesses in the biobased materials industry 
in november 2010 we signed an agreement 
with amyris under which tate  lyle will produce 
farnesene at its facilities in decatur illinois usa 
with the end product being distributed by amyris 
then in march 2011 we signed an agreement 
with genomatica under which we will dedicate a 
demonstrationscale production facility in decatur 
for exclusive use by genomatica for the scaleup 
of the biobdo process
 
 
 
 
 
 
 
 
 
 
costs
the total costs associated with the delivery of 
the new commercial and food innovation centre 
are expected to be £37 million and the common 
isit platform and global support services to be 
£57 million of the total amount of £94 million 
£40 million is expected to be treated as exceptional 
costs within the income statement and £54 million 
as capital expenditure during the financial year 
2011 £6 million of capital and £10 million of 
exceptional costs were incurred and we anticipate 
around £65 million of expenditure in relation to 
these projects during the year ending 31 march 
2012 the remaining expenditure relating to  
isit and global shared services will be incurred 
in the year ending 31 march 2013 we expect the 
investment made in the common isit platform  
and global support services to pay back over  
a period of three years
risk management
we have embedded a framework of risk 
management into the various programmes 
undertaking the initiatives to focus fix and grow the 
business to address the execution risk associated 
with them this framework has been supplemented 
by internal and external risk and assurance 
activities over the life of the programmes
conclusion
we have taken a number of important steps during 
the year to deliver on our commitment to focus 
fix and grow the business the focus phase is now 
largely complete and the fix phase is progressing 
well although there is still more work to do  
whilst the grow phase is beginning to yield some 
small but tangible benefits it is still early days  
our objective remains to build a platform on which 
we can deliver steady and sustainable longterm 
growth and value for shareholders we remain  
on track to deliver on this objective 
javed ahmed 
chief executive
26 may 2011
grow
the innovation and commercial development 
icd group which was formed on 1 june 2010 
has made good progress during the year working 
closely with customers on product development 
and innovation initiatives icd is responsible for 
the innovation pipeline and during the year the 
processes used by icd to manage and review the 
pipeline and the way it launches new products 
were completely overhauled during the year we 
launched resistamyl
™
 140 a bakery cream 
starch in europe and promitor
™
 soluble  
corn fiber 85 in the usa and latin america  
we also recently announced a fiveyear strategic 
partnership agreement with biovittoria ltd for the 
exclusive global marketing and distribution rights 
for biovittoria’s monk fruit extract marketed under 
the purefruit
™
 brand name purefruit
™
 is the 
only fruitbased caloriefree sweetening ingredient 
available today and is a good addition to our 
sweetener and wellness portfolios 
to enhance how we engage with our customers 
and improve our access to them in october 2010 
we announced that we would be establishing a 
new commercial and food innovation centre 
in chicago usa the centre which is due to 
be operational in early 2012 will be the global 
headquarters of icd and will feature laboratories  
a demonstration kitchen sensory testing and 
analytical and pilot plant facilities
the underlying global consumer trends of  
health and wellness and convenience continue  
to underpin longterm growth in the speciality  
food ingredients market customer demand 
for both new and existing products that meet 
consumers’ needs in these key areas remains 
strong particularly for products that can help 
address rising levels of diabetes and obesity in  
the developed and increasingly the developing 
world cost optimisation in the face of high and 
volatile commodity eg sugar prices is also 
driving demand in light of the strong pipeline 
of demand for splenda
®
 sucralose both from 
existing and new customers and having carried 
out a comprehensive review of the available 
options we have decided to restart sucralose 
production at our mothballed facility in mcintosh 
alabama usa the restart of production which  
we expect to take place during the first half of 
financial year 2013 reinforces our commitment  
to the sucralose business provides further 
resilience in our supply chain and further 
strengthens our position as the leading global 
manufacturer and supplier of sucralose 
we are also looking to build our business and 
capabilities in two areas where we see longterm 
growth – new customer segments and emerging 
markets dedicated resources have now been 
put in place in europe and the usa to serve small 
and medium enterprise smes and private label 
customers in emerging markets we have changed 
our senior management team in asia pacific to 
provide fresh impetus to our efforts in that region 
we are also building new application laboratories 
in mexico and brazil to add to our global network 
and have strengthened our sales teams in both 
latin america and china
the grow phase is beginning 
to yield some small but 
tangible benefits