TATE: Tate & Lyle PLC: Half-yearly Report

  TATE: Tate & Lyle PLC: Half-yearly Report

UK Regulatory Announcement

LONDON

8 November 2012

TATE & LYLE PLC
STATEMENT OF HALF YEAR RESULTS
For the six months to 30 September 2012
                                                           
                                  Six months to
                                  30 September (Unaudited)
Continuing operations^1                                        % change in
£m unless stated otherwise        2012             2011          constant
                                                       currency^4
                                                                             
Sales                             1 631            1 540         + 7%
                                                                             
Adjusted results
Adjusted operating profit^2       195              194           + 2%
Adjusted profit before tax^3      179              177           + 2%
Adjusted diluted earnings per     30.7p            30.7p         + 1%
share^3
                                                                             
Statutory results
Operating profit                  187              255           - 26%
Profit before tax                 172              241           - 28%
Profit for the period (on         167              177           - 5%
total operations)
Diluted earnings per share        35.1p            37.0p         - 4%
(on total operations)
                                                                             
Net debt                          386              410
                                                                             
Dividend per share                7.4p             7.1p          + 4.2%
                                                                             

Javed Ahmed, Chief Executive, said:

“Tate & Lyle made progress in the first six months against the backdrop of a
strong first half last year, softer market conditions in Europe and the step
change in fixed costs associated with the restart of our SPLENDA^® Sucralose
facility in McIntosh, Alabama and business transformation initiatives. Despite
facing a number of headwinds this year, I am pleased that the business
continues to perform solidly.”

Highlights

  *Speciality Food Ingredients sales up 5% (6% in constant currency) with
    adjusted operating profit 7% lower than the strong first half last year
    after absorbing the step change in fixed costs and a softer first quarter
  *Bulk Ingredients adjusted operating profit up 6% (7% in constant currency)
    with strong performance from sweeteners more than offsetting more normal
    co-product returns following £19 million of additional income in the
    comparative period
  *Business transformation programme continues with encouraging initial
    customer response to our new global Commercial and Food Innovation Centre
    in Chicago and the launch of our new venture fund
  *4.2% increase in interim dividend to 7.4p  (2011 – 7.1p)

Outlook

In Speciality Food Ingredients, while we expect continued challenging market
conditions in Europe, overall we expect to achieve steady volume growth and
solid sales growth for the full year.

In Bulk Ingredients, we expect the firm demand for liquid sweeteners in the US
to continue and demand in our other food markets to remain stable. In Europe,
higher corn prices are expected to reduce isoglucose margins in the second
half. Market conditions in US ethanol are expected to remain challenging.

As usual, the outcome of the 2013 calendar year sweetener pricing rounds will
influence performance in the final quarter of the financial year.

Overall, while recognising the current level of uncertainty around the wider
economy and corn quality and pricing, we continue to expect to make progress
this financial year.


^1 Excluding the results of discontinued operations in both periods.
^2 Before net exceptional charge of £2 million (2011 – credit of £66 million)
and amortisation of intangible assets acquired through business combinations
of £6 million (2011 – £5 million).
^3 Before net exceptional charge of £2 million (2011 – credit of £66 million),
amortisation of intangible assets acquired through business combinations of £6
million (2011 – £5 million) and post-retirement pension interest credit of £1
million (2011 – £3 million).
^4 Changes in constant currency are calculated by retranslating comparative
period results at current period exchange rates.


Cautionary statement

This Statement of Half Year Results contains certain forward-looking
statements with respect to the financial condition, results, operations and
businesses of Tate & Lyle PLC. These statements and forecasts involve risk and
uncertainty because they relate to events and depend upon circumstances that
will occur in the future. There are a number of factors that could cause
actual results or developments to differ materially from those expressed or
implied by these forward-looking statements and forecasts. Nothing in this
Statement of Half Year Results should be construed as a profit forecast.

A copy of this Statement of Half Year Results for the six months ended 30 ^
September 2012 can be found on our website at www.tateandlyle.com. A hard copy
of this statement is also available from The Company Secretary, Tate & Lyle
PLC,  1 Kingsway, London WC2B 6AT.

SPLENDA^® is a trademark of McNeil Nutritionals, LLC.

Webcast and Conference Call Details

Tate & Lyle will issue its Half Year results announcement on Thursday 8
November 2012. A presentation of the results by Chief Executive, Javed Ahmed
and Chief Financial Officer, Tim Lodge will be audio webcast live at 10.00
(UKT). To view and/or listen to a live audio-cast of the presentation, visit
http://view-w.tv/p/797-1031-12014/en. Please note that remote listeners will
not be able to ask questions during the Q&A session. A webcast replay of the
presentation will be available within two hours of the end of the live
broadcast on the link above.

For those unable to view the webcast, there will also be a teleconference
facility for the presentation. Details are given below:


Dial in details:
UK dial in number: +44 (0) 20 3003 2666
US dial in number: +1 646 843 4608
Password: Tate & Lyle

14 day conference call replay:
UK replay number: +44 (0) 20 8196 1998
US replay number: +1 866 583 1035
Replay Access code: 2903268


For more information contact Tate & Lyle PLC:

Mathew Wootton, Group VP, Investor and Media Relations
Tel: +44 (0) 20 7257 2110 or Mobile: +44 (0) 7500 100 320

Andrew Lorenz, FTI Consulting
Tel: +44 (0) 20 7269 7113 or Mobile: +44 (0) 7775 641807



STATEMENT OF HALF YEAR RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2012

Results for the continuing operations are adjusted to exclude exceptional
items, post-retirement benefit interest and amortisation of intangible assets
acquired through business combinations. 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 16.

Tate & Lyle delivered a solid performance in the first six months against the
backdrop of a strong first half last year, softer market conditions in Europe
and the step change in fixed costs associated with the restart of our
SPLENDA^® Sucralose facility in McIntosh, Alabama and business transformation
initiatives^1. Sales in the first half increased by 6% (7% in constant
currency) to £1,631 million (2011 – £1,540 million) with adjusted operating
profit up 1% (2% in constant currency) to £195 million (2011 – £194 million).
Adjusted profit before tax increased by 2% (2% in constant currency) to £179
million (2011 – £177 million) while statutory profit before tax decreased by
£69 million to £172 million (2011 – £241 million) with the comparative period
benefiting from an exceptional credit relating to the restart of our McIntosh
facility.

Our Key Performance Indicators (KPIs) for the first six months to 30 September
2012 are as follows:

                                        First      First    
                                            Half         Half
KPI                 Measure             2012       2011      Change†
Growth in SFI         Sales                 £471m        £450m       + 6%
sales
Profitability         Adjusted              £195m        £194m       + 2%
                      operating profit
Working capital       Cash conversion       37 days      35 days     Worsened
efficiency            cycle*                                         by 2 days
Financial             Net debt/EBITDA**     0.9x         0.9x
strength
Financial             Interest cover**      11.4x        8.3x
strength
                                                                     

† Sales and operating profit growth are shown in constant currency
* Defined as controllable working capital divided by quarterly sales,
multiplied by number of days in quarter on a four quarter rolling basis (a
reduction in the number of days represents an improvement)
** These ratios have been calculated under the Group’s bank covenant
definitions. Net debt is calculated using average rates of exchange.
Pre-exceptional EBITDA is the EBITDA for the six months ended 30 September
2012 plus the amount for the six months ended 31 March 2012; the comparative
for 30 September 2011 is calculated on a consistent basis.

^1 Investment in global shared services and IS/IT system and the development
of the Commercial and Food Innovation Centre in Chicago


DIVISIONAL OPERATING PERFORMANCE

Speciality Food Ingredients

                          Six months to 30       Change
                             September
                             2012         2011                       Constant
                                              Reported    currency
                             £m           £m
                                                       
Sales                        471        450          + 5%        + 6%
Adjusted operating           108          116          - 7%          - 7%
profit
Margin                    22.9%      25.8%     - 2.9ppts   - 3.1ppts
                                                                     

Within Speciality Food Ingredients, volumes increased by 3% with sales up by
5% (6% in constant currency) to £471 million (2011 – £450 million). At a
regional level, solid growth in the US and good growth in emerging markets was
partially offset by softer conditions in Europe where the market remains weak.
While overall volume growth in the period fell slightly short of our
expectations, due to lower volumes in September, we have made a solid start to
the second half with good volume growth in October, and volume growth for the
first seven months of the year is in line with the market.

Adjusted operating profit was 7% lower (7% lower in constant currency)
compared with the strong first half last year reflecting the step change in
fixed costs associated with the restart of our SPLENDA^® Sucralose facility in
McIntosh, Alabama, our business transformation initiatives and the strike at
our joint-venture plant in Adana, Turkey. The effect of exchange translation
was to decrease sales by £6 million compared to the first half last year.

The Speciality Food Ingredients segment comprises three broad product
categories namely: starch-based speciality ingredients; high intensity
sweeteners; and food systems.

Starch-based speciality ingredients

In starch-based speciality ingredients, volumes increased by 3% and sales by
12% (12% in constant currency) to £273 million (2011 – £244 million). While
overall operating profit was slightly ahead and absolute unit margins were
broadly in line, percentage margins were lower than the comparative period
principally reflecting the pass through of higher corn prices and the
absorption of higher fixed costs.

In modified food starches, we saw steady volume growth in the US and strong
growth in Asia, which benefited from the investment we have made in growing
the sales force in the region and where the market continues to grow driven by
the increasing demand for packaged foods. In Latin America, the broadening of
our product offering also helped us to secure sales with new customers.

While global sugar prices decreased on the back of improved harvests, they
remain high by historical standards and we continued to see growth in
corn-based speciality sweeteners particularly in the US where our products are
used not only as sugar substitutes in cost-optimisation projects but also for
their functional properties. We also continued to build the market for
corn-based speciality sweeteners in Latin America, where their stability
characteristics help maintain a consistent taste in beverage applications.

Our speciality fibres continue to benefit from the global health & wellness
trend with particularly strong growth in China and Europe in polydextrose
volumes whose versatility allows broad use in food and beverage fibre
fortification projects and as a low calorie bulking agent in sugar replacement
projects.

High intensity sweeteners

Within high intensity sweeteners, which includes SPLENDA^® Sucralose and
PUREFRUIT™, volumes were 8% lower than the strong comparator last year driven
by lower SPLENDA^® Sucralose volumes. Sales decreased by 4% (5% in constant
currency) to £103 million (2011 – £108 million). Operating profit was lower
than the comparative period as a result of the lower volumes and the
additional fixed costs associated with the restart of the McIntosh facility.
Prices for SPLENDA^® Sucralose were broadly in line with the comparative
period.

Lower first half volumes in SPLENDA^® Sucralose were driven by two factors.
Firstly, the exceptionally strong volume growth (17%) in the comparative
period which resulted from a number of customer new product launches in
emerging markets in the first quarter and secondly, softer and competitive
market conditions in Europe. We saw a move towards more normal volume growth
patterns in the latter part of the first half.

We are also making progress developing the market for PUREFRUIT™ Monk-Fruit
Extract, our zero calorie fruit-based natural high intensity sweetener, with
new product launches in the US table-top market in the period building on the
strong consumer interest in natural high intensity sweeteners.

At the end of the first half, we launched TASTEVA™ Stevia Sweetener our new
stevia-based, natural high intensity sweetener. TASTEVA™ will enable customers
seeking a natural sweetener to reduce sugar levels without the
bitter/liquorice aftertaste often associated with other high purity,
stevia-based sweeteners and further enhance our speciality sweetener
portfolio.

Food systems

Food systems sales were 4% lower (up 4% in constant currency) at £95 million
(2011 – £98 million) largely driven by a weakening of the euro. Volumes were
lower than the comparative period, down 1%, with solid growth in US and Asia
offset by softer market conditions in Europe.

Raw material prices remained high during the period and while we made some
progress mitigating the impact of higher input costs - through the use of more
cost-effective corn-based substitutes and shortening the length of customer
contracts - operating margins were somewhat lower than the comparative period
as were profits overall.

During the period, we expanded and consolidated our European food systems
operations through the relocation of technical, marketing, formulation and
pilot plant services into a new facility alongside our current production site
in Roggenhorst, near Lübeck, Germany. The new facility will give us the
ability to provide a fully integrated offering for a range of food
applications from one location, enabling us to shorten project development
cycles, improve efficiency and help customers get to market faster.

Bulk Ingredients

                         Six months to 30       Change
                              September
                              2012         2011                       Constant
                                             Reported    currency
                              £m           £m
Sales                         1 160      1 090        + 6%        + 7%
Adjusted operating            101          96           + 6%          + 7%
profit
Margin                   8.7%       8.8%      - 0.1ppts   0.0ppts
                                                                      

Within Bulk Ingredients, sales increased by 6% (7% in constant currency) to
£1,160 million (2011 – £1,090 million) on the back of higher corn prices with
volumes 1% lower as expected. Adjusted operating profit increased by 6% (7% in
constant currency) to £101 million (2011 – £96 million) with a strong
performance from sweeteners in the US and Europe more than offsetting more
normal returns from co-products. The effect of exchange translation was to
decrease sales by £10 million and adjusted operating profit by £2 million.

This division comprises three broad product categories namely: sweeteners;
industrial starches, acidulants and ethanol; and co-products.

Sweeteners

In North America, bulk corn sweetener volumes were 2% higher and sales
increased by 16% (16% in constant currency) to £510 million (2011 – £441
million) reflecting the pass-through of higher corn costs. During the period
we experienced strong seasonal demand for HFCS in the US and from Mexico.
Towards the end of the first half, the spread between US HFCS and Mexican
sugar prices narrowed on expectations of a better sugar harvest and while we
expect Mexican demand for HFCS to remain robust, the market is likely to
remain competitive. Operating profits within this category were ahead of the
comparative period.

In Europe, bulk corn sweetener volumes were 7% lower as a result of a lower
allocation of quotas in certain non-EU markets and the strike at our
joint-venture plant in Turkey. Sales increased by 1% (up 11% in constant
currency) to £77 million (2011 – £76 million). European sugar prices, which
provide the reference price for isoglucose, remained high and ahead of the
comparative period resulting in increased margins and good growth in operating
profits overall.

Industrial starches, acidulants and ethanol

Sales of industrial starches, acidulants and ethanol decreased by 3%
(decreased by 2% in constant currency) to £312 million (2011 – £322 million)
with volumes 7% lower.

Industrial starch volumes decreased as we continued our strategy to gradually
switch corn grind in both Europe and the US from producing industrial starches
to higher margin speciality food starches. In the US, volumes were lower than
the comparative period with higher margins driven by improved pricing. In
Europe, while industrial starch margins were lower than the prior year period
(which benefited from the poor availability of alternative starches), they
were ahead of our expectations with market conditions relatively stable
overall. Looking forward, the performance of this part of the business remains
sensitive to changes in the macro-economic environment.

In US ethanol, where we are a small player, market conditions remained
extremely challenging with excess capacity moving industry operating margins
before fixed costs into negative territory and well below the prior year
period. While we have taken steps to further reduce our exposure to this
market by reducing production volumes down to the lowest practical extent,
operating losses in this segment increased in the first half. Within our
acidulants business, profits were slightly ahead and our Bio-PDO™ joint
venture made a small profit during the first half compared with a loss in the
comparative period.

Co-products

Co-product sales increased by 4% (4% in constant currency) to £261 million
(2011 – £251 million), with returns reverting to more normal levels during the
period. This compares with a strong performance in the first six months of
last year where co-products generated £19 million of additional income.

Corn harvest and corn quality

In the US, the worst drought in the mid-west for 56 years has impacted both
the size and quality of this year’s corn harvest. Between 11 June and 11
October 2012, the USDA reduced its forecasted supply from 15.6m to 11.8m
bushels (down 24%). As a result, corn prices rose sharply at the end of June^2
and have remained elevated ever since. Despite lower forecasts for direct
consumption of corn into animal feed and lower export demand, the
stocks-to-use ratio is still projected by the USDA to fall from 13.7% to 5.6%.
As a result, corn prices are expected to remain volatile for the foreseeable
future.

The extremely dry and hot conditions in the US have also impacted corn quality
with aflatoxin, a byproduct of a grain fungus, present in this year’s harvest
particularly in those areas hardest hit by the drought. While aflatoxin does
not impact the core end products of the corn wet milling process, such as
HFCS, it tends to concentrate in corn gluten meal (CGM) and corn gluten feed
(CGF) and if certain thresholds are breached it can restrict the end markets
into which these co-products can be sold.

While the presence of aflatoxin resulted in the sale of a greater proportion
of our CGM and CGF in lower value markets in the first few weeks following the
harvest, we have taken steps to adjust our corn sourcing programme to help us
meet customer requirements in our traditional co-product end markets. Although
significant efforts are underway to mitigate the impact of aflatoxin, and we
continue to monitor the situation closely, based on what we know today we
believe it will result in a small increase in net corn costs for the remainder
of the financial year and through to the next harvest.

Continued dry and hot conditions in central Europe have also driven up
European corn prices and, with sugar prices remaining stable, this is expected
to reduce isoglucose margins during the second half.

^2 Spot corn prices in the US peaked at 831 cents per bushel on 21 August 2012

BUILDING A PLATFORM FOR LONG-TERM GROWTH

We continue to make good progress against the milestones we set out in May
2010 as part of our business transformation programme.

In June 2012, we opened our new Commercial and Food Innovation Centre in
Chicago to customers. The initial response has been very encouraging with a
significant number of customers having visited over the last few months. The
new Centre, which features research and application laboratories as well as a
demonstration kitchen, sensory testing, analytical and pilot plant facilities,
not only enhances the way we interact with customers and our access to them,
but also enables us to accelerate the volume and efficiency of our pipeline
development through the physical colocation of both technical and commercial
resources.

Our Innovation and Commercial Development (ICD) group continues to work on
product development and innovation initiatives. In September, we launched
TASTEVA™ Stevia Sweetener, our new zero-calorie stevia-based sweetener
developed using a proprietary process that will enable food and beverage
manufacturers seeking sweetness from a natural source to reduce sugar levels
without the bitter/liquorice aftertaste often associated with other high
purity, stevia-based sweeteners. The addition of TASTEVA™ to our natural
portfolio, which also includes PUREFRUIT™ Monk Fruit Extract, alongside our
other sweetener products further reinforces our offering and market position
as a leading global provider of sweetener solutions.

In October 2012, we launched our new salt reduction ingredient, SODA-LO™ Salt
Microspheres (SODA-LO™). SODA-LO™ has been created using a technology that
turns standard salt crystals into free-flowing crystalline microspheres. These
smaller, lower-density crystals efficiently deliver salty taste by maximizing
surface area relative to volume, making it possible to enjoy the same salt
taste while consuming lower levels of salt and also providing customers with a
clean label solution.

In response to significant price rises and supply constraints in the egg
market and the need for our customers to control recipe costs, during the
period we launched new HAMULSION^® stabiliser systems, a solution enabling egg
replacement in bakery products of up to 100%. This builds on other initiatives
within our food systems business to help reduce input costs including the
launch last year of CARCAO™, a carob powder ingredient that can be used as a
partial cocoa replacement.

In July 2012, the new global IS/IT system was rolled out in our single
ingredients business in Europe. Work to fully embed the new system is
on-going. As a result, implementation across the rest of the business will
move into the next financial year allowing us to build on the experience
gained during the initial roll-out.

During the first half, £17 million of capital and £10 million of exceptional
costs were incurred on the new Commercial Food and Innovation Centre and the
rollout of global shared services and the common global IS/IT system.

Today, we are also announcing the launch of a new Tate & Lyle Ventures 8-year
£30 million fund with Tate & Lyle as the sole investor. The new fund will
broaden our global innovation programme by providing a vehicle to access and
invest in targeted early-stage speciality food ingredient companies which have
the potential for longer term value creation. The new fund builds on our
existing venturing capabilities and complements our innovation capabilities
within ICD.

GROUP OUTLOOK FOR YEAR ENDING 31 MARCH 2013

In Speciality Food Ingredients, while we expect continued challenging market
conditions in Europe, overall we expect to achieve steady volume growth and
solid sales growth for the full year.

In Bulk Ingredients, we expect the firm demand for liquid sweeteners in the US
to continue and demand in our other food markets to remain stable. In Europe,
higher corn prices are expected to reduce isoglucose margins in the second
half. Market conditions in US ethanol are expected to remain challenging.

As usual, the outcome of the 2013 calendar year sweetener pricing rounds will
influence performance in the final quarter of the financial year.

Overall, while recognising the current level of uncertainty around the wider
economy and corn quality and pricing, we continue to expect to make progress
this financial year.

FINANCIAL PERFORMANCE

Overview of Group financial performance

Tate & Lyle delivered a solid performance in the first six months against the
backdrop of a strong first half last year, softer market conditions in Europe
and the step change in fixed costs associated with the restart of our
SPLENDA^® Sucralose facility in McIntosh, Alabama and business transformation
initiatives. Sales in the first half increased by 6% (7% in constant currency)
to £1,631 million (2011 – £1,540 million) with adjusted operating profit up 1%
(2% in constant currency) to £195 million (2011 – £194 million). Adjusted
profit before tax increased by 2% (2% in constant currency) to £179 million
(2011 – £177 million). Statutory profit before tax decreased by £69 million to
£172 million (2011 – £241 million) with the comparative period benefiting from
an exceptional credit relating to the restart of our McIntosh facility.

As announced in May 2012, we now exclude post-retirement benefit interest from
the presentation of our adjusted earnings. All comparatives have been restated
accordingly.

Central costs

Central costs, which include head office, treasury and reinsurance activities
decreased by £4 million to £14 million (2011 – £18 million), mainly as a
result of the settlement of claims by our captive insurer during the period.

Net finance expense

Net interest expense excluding post-retirement benefit interest of £16 million
is marginally below the comparative period of £17 million principally as a
result of the redemption of our £100 million bond at its maturity in June 2012
which was funded from our cash reserves.

Exceptional items

During the period, we recognised a net exceptional charge of £2 million (2011
– credit of £66 million) in continuing operations. In August, we completed the
disposal of our share in Sucromiles SA, our Colombian citric acid joint
venture, to our former joint venture partner, resulting in a gain on disposal
of £8 million which has been recognised in continuing operations. We also
incurred costs of £10 million in relation to our ongoing business
transformation projects. The net exceptional credit of £66 million in the
comparative period related to our decision to restart production at our
facility in McIntosh, Alabama (£73 million credit) partly offset by business
transformation costs (£7 million).

The tax impact on continuing operations of net exceptional items was a £2
million credit (2011 – £28 million charge).

Within discontinued operations, there was an exceptional gain of £21 million
in relation to the sale of our Vietnam sugar interests.

Taxation

The effective tax rate on adjusted profit from continuing operations was 18.8%
(2011 – 18.1%) based on our current expectations of the rate for the full
year. As anticipated, this increase reflects the change in the geographic mix
of profits compared to the prior year. The effective tax rate remains
sensitive to the geographic mix of profits going forward.

Earnings per share

Adjusted diluted earnings per share on continuing operations was in line (up
1% at constant currency) with the comparative period at 30.7p (2011 – 30.7p).
Statutory diluted earnings per share on continuing operations decreased by 22%
to 30.2p (2011 – 38.9p).

Cash flow

Free cash flow of £144 million was slightly ahead of the comparative level of
£128 million. This was largely driven by a working capital inflow of £8
million (2011 – outflow of £21 million) with margin call inflows caused by the
higher corn price partially offset by higher corn inventories as a result of
the early harvest in the US.

Operating cash inflows from discontinued operations totalled £11 million (2011
– £24 million). Capital expenditure of £60 million, including £19 million
investment in intangible assets mainly related to the global IS/IT system, was
slightly above the related depreciation and amortisation charge (excluding
amortisation of intangible assets acquired through business combinations) for
the period of £51 million. Including the investments we will be making in
growth and business transformation, we would expect capital expenditure to be
approximately 1.4 times the related depreciation and amortisation charge in
the current financial year.

Our average four quarter cash conversion cycle for the period ended 30
September 2012 deteriorated 1 day when compared to the result for the year
ended 31 March 2012, mainly driven by higher corn prices.

Net debt and financing profile

Net debt at 30 September 2012 was £386 million, a decrease of £90 million
since 31 March 2012 including net cash proceeds of £43 million from the
disposal of Sucromiles and our Vietnam sugar interests. The effect of exchange
translation since 31 March 2012 was to increase net debt by £5 million. The
ratio of net debt to EBITDA for our banking covenants was 0.9 times,
comfortably within our internal target of not more than 2.0 times.

In June 2012, at its maturity, we repaid our £100 million bond. Ahead of the
maturity of the $500 million Guaranteed Notes in November 2014, we are
evaluating a range of options including the possible refinancing of these
bonds early in the year ending 31 March 2014. The average maturity of gross
debt is 5.1 years, and we continue to have significant undrawn committed bank
facilities.

Balance sheet

The Group's net assets decreased by £81 million to £977 million at 30
September 2012 from £1,058 million at 31 March 2012. Profit for the period
(including non-controlling interests) of £167 million was partially offset by
an outflow of dividend payments of £85 million. Actuarial losses on the
Group's retirement benefit schemes in the period were £102 million, and were
driven by reductions in discount rates primarily in the UK and US.

Dividend

The Board has approved an interim dividend of 7.4p, an increase of 4.2% on the
prior year (2011 – 7.1p) in line with our progressive dividend policy. This
will be paid on 4 January 2013 to shareholders on the register on 30 November
2012. In addition to the cash dividend option, shareholders continue to be
offered a Dividend Reinvestment Plan (DRIP) alternative.

Discontinued operations

Discontinued activities, principally our Vietnam Sugar operation prior to its
disposal in June, generated an adjusted operating profit of £3 million in the
first half, in line with the profit in the comparative period.

Operating cash inflows from discontinued operations totalled £11 million
compared with £24 million in the comparative period.

Going concern

After making enquiries, the Directors have a reasonable expectation that the
Company and its subsidiaries have adequate resources to continue in
operational existence for the foreseeable future. For this reason, they
continue to adopt the going concern basis in preparing the consolidated
financial information of the Group.

Risks and uncertainties

The principal risks and uncertainties affecting the business activities of the
Group remain those detailed on pages 27 to 29 in the Report and Accounts for
the year ended 31 March 2012, a copy of which is available on the Company’s
website at www.tateandlyle.com. In the view of the Board, other than as
referred to elsewhere in this statement, there is no material change in these
risks in respect of the remaining six months of the year.

These risks are: failure to act safely and to maintain the continued safe
operation of our facilities and quality of our products; failure to attract,
develop and retain key personnel; non-compliance with legislation and
regulation; fluctuations in prices, offtake and availability of raw materials,
energy, freight and other operating inputs; failure to protect intellectual
property; failure to implement the Group’s programme to transform its
operational capabilities; failure to counter negative perceptions of the
Group’s products; failure to identify important consumer trends and innovate;
failure to manage capital expenditure and working capital, and to deliver key
projects; failure to maintain an effective system of internal financial
controls; and competitors achieving significant advantage.

Impact of changes in exchange rates

In comparison to the prior period, our sales and profit has been negatively
impacted by exchange rate translation. A strengthening of the average US
dollar exchange rate against sterling has been more than offset by the
weakening of other currencies, notably the Euro, Hungarian Forint and Mexican
Peso. The movement in period-end exchange rates, particularly the weaker US
dollar, led to an increase in net debt as a result of the translation of
accounts recorded in foreign exchange. The principal average and closing
exchange rates used to translate reported results were as follows:

            Six months to 30 September                  Year to 31 March
                                                            2012
              Average rates        Closing rates       Average   Closing
                                                            rates       rates
           2012     2011      2012     2011              
US dollar
:             1.58     1.62      1.61     1.56     1.60      1.60
sterling
Euro :        1.25       1.14         1.25       1.16       1.15        1.20
sterling
Hungarian
Forint :      359.97     308.50       357.81     341.06     333.25      353.74
sterling
Mexican
Peso :        21.10      19.85        20.75      21.54      20.26       20.49
sterling
                                                                        

Statement of Directors’ responsibilities

The Directors confirm that this condensed set of consolidated financial
information has been prepared in accordance with International Accounting
Standard 34 Interim Financial Reporting as adopted by the European Union, and
that the interim management report herein includes a fair review of the
information required by the Disclosure Rules and Transparency Rules of the
Financial Services Authority, paragraphs DTR 4.2.7R and DTR 4.2.8R, namely:

  *an indication of important events that have occurred during the first six
    months and their impact on the condensed set of consolidated financial
    information;
  *a description of the principal risks and uncertainties for the remaining
    six months of the financial year; and
  *material related party transactions in the first six months and any
    material changes in the related party transactions described in the last
    Annual Report.

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.

The Directors of Tate & Lyle PLC are listed in the Tate & Lyle Annual Report
for the year ended 31 March 2012. In April 2012, Dr Ajai Puri joined the Board
as a non-executive director.

                                               
For and on behalf of the Board of Directors:
                                                   
Javed Ahmed                                        Tim Lodge
Chief Executive                                    Chief Financial Officer
                                                   
7 November 2012
                                                   

Independent review report to Tate & Lyle PLC

Introduction

We have been engaged by the company to review the condensed set of
consolidated financial information in the Statement of Half Year Results for
the six months ended 30 September 2012, which comprises the consolidated
income statement, the consolidated statement of comprehensive income, the
consolidated statement of financial position, the consolidated statement of
cash flows, the consolidated statement of changes in shareholders’ equity and
related notes. We have read the other information contained in the Statement
of Half Year Results and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the
condensed set of financial statements.

Directors’ responsibilities

The Statement of Half Year Results is the responsibility of, and has been
approved by, the Directors. The Directors are responsible for preparing the
Statement of Half Year Results in accordance with the Disclosure and
Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in Note 1, the annual financial statements of the Group are
prepared in accordance with International Financial Reporting Standards as
adopted by the European Union. The condensed set of financial statements
included in this half-yearly financial report has been prepared in accordance
with International Accounting Standard 34, Interim Financial Reporting, as
adopted by the European Union.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed
set of consolidated financial information in the Statement of Half Year
Results based on our review. This report, including the conclusion, has been
prepared for and only for the Company for the purpose of the Disclosure and
Transparency Rules of the Financial Services Authority and for no other
purpose. We do not, in producing this report, 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 review

We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, ‘Review of Interim Financial Information
Performed by the Independent Auditor of the Entity’ issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of consolidated financial information in the
Statement of Half Year Results for the six months ended 30 September 2012 is
not prepared, in all material respects, in accordance with International
Accounting Standard 34 as adopted by the European Union and the Disclosure and
Transparency Rules of the United Kingdom's Financial Services Authority.

PricewaterhouseCoopers LLP
Chartered Accountants
London
7 November 2012


CONSOLIDATED INCOME STATEMENT (UNAUDITED)

                                Six months     Six months    Year to
                                    to               to
                                    30 September     30               31 March
                                                     September
                                    2012             2011             2012
                       Notes   £m             £m            £m
Continuing operations
                          2         1 631           1 540          3 088  
Sales
                                                                      
Operating profit          2         187              255              404
Finance income            4         2                5                8
Finance expense           4         (17     )        (19    )        (33    )
Profit before tax                   172              241              379
Income tax expense        5         (29     )        (57    )        (72    )
Profit for the period
from continuing                     143              184              307
operations
Profit/(loss) for the
period from               8         24              (7     )        2      
discontinued
operations
Profit for the period               167             177            309    
                                                                      
Profit for the period
attributable to:
Owners of the Company               166              175              305
Non-controlling                     1               2              4      
interests
Profit for the period               167             177            309    
                                                                      
Earnings per share
attributable to the
owners of the
Company from              6         Pence            Pence            Pence
continuing and
discontinued
operations
– Basic                             35.7             37.6             65.5
– Diluted                           35.1            37.0           64.3   
                                                                      
Earnings per share
attributable to the
owners of the             6         Pence            Pence            Pence
Company from
continuing operations
– Basic                             30.8             39.5             65.9
– Diluted                           30.2            38.9           64.6   
                                                                      
                                                                      
Analysis of adjusted
profit before tax                   £m               Restated         Restated
from continuing
operations                                          £m              £m
Profit before tax                   172              241              379
Adjustments for:
Exceptional items         3         2                (66    )         (68    )
Amortisation of
intangible assets
acquired through                    6                5                12
business
combinations
Post-retirement                     (1      )        (3     )        (5     )
benefit interest
Adjusted profit
before tax,
exceptional items,
amortisation of                                                     
intangible assets                                                         
acquired through                    179              177              318
business combinations
and
post-retirement
benefit interest
                                                                      
                                                                      

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

                                Six months to   Six months to   Year to
                                  30 September      30 September      31 March
                                  2012              2011              2012
                               £m              £m              £m
Profit for the period             167               177               309
                                                                      
Actuarial losses in               (102     )        (128     )        (87    )
post-employment benefit plans
Net fair value losses on cash     (2       )        (7       )        (2     )
flow hedges
Cash flow hedges reclassified
and reported in the income        3                 –                 (3     )
statement
during the year
Valuation losses on
available-for-sale financial      –                 –                 (1     )
assets
Net exchange differences          (25      )        (14      )        (30    )
Items recycled to income          (14      )        –                 (11    )
statement on disposal
Deferred tax relating to the      18               36               27     
above components
Other comprehensive expense       (122     )        (113     )        (107   )
for the period, net of tax
Total comprehensive income        45               64               202    
for the period
                                                                      
Total comprehensive income
relating to continuing            27                71                211
operations
Total comprehensive
income/(expense) relating to      18               (7       )        (9     )
discontinued operations
                                  45               64               202    
                                                                      
Attributable to:
Owners of the Company             43                61                198
Non-controlling interests         2                3                4      
                                  45               64               202    
                                                                      
Dividends per share               Pence             Pence             Pence
– Proposed at the end of the      7.4               7.1               17.8
period
– Paid in the period              17.8             16.9             24.0   
                                                                      
                                                                      

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)

                                      30           30           31
                                          September      September      March
                                          2012           2011           2012
                             Notes   £m           £m           £m
ASSETS
Non-current assets
Goodwill and other                        329            328            325
intangible assets
Property, plant and                       896            904            922
equipment
Investments in associates                 6              5              5
Available-for-sale                        25             22             23
financial assets
Derivative financial                      62             61             57
instruments
Deferred tax assets                       38             63             37
Trade and other receivables               4              –              2
Retirement benefit surplus                113            85             146
                                          1 473          1 468          1 517
Current assets
Inventories                               434            343            450
Trade and other receivables               347            329            332
Current tax assets                        4              4              3
Derivative financial                      108            106            80
instruments
Cash and cash equivalents       9         419            531            424
                                          1 312          1 313          1 289
Assets held for sale            11        3              72             100
                                          1 315          1 385          1 389
TOTAL ASSETS                              2 788          2 853          2 906
                                                                        
SHAREHOLDERS’ EQUITY
Capital and reserves
attributable to the owners
of the Company:
Share capital                             117            117            117
Share premium                             406            406            406
Capital redemption reserve                8              8              8
Other reserves                            89             155            128
Retained earnings                         357            250            374
                                          977            936            1 033
Non-controlling interests                 –              26             25
TOTAL SHAREHOLDERS’ EQUITY                977            962            1 058
                                                                        
LIABILITIES
Non-current liabilities
Trade and other payables                  1              –              4
Borrowings                      9         803            822            805
Derivative financial                      16             25             19
instruments
Deferred tax liabilities                  22             27             25
Retirement benefit deficit                330            318            286
Provisions for other                      14             21             18
liabilities and charges
                                          1 186          1 213          1 157
Current liabilities
Trade and other payables                  418            336            382
Current tax liabilities                   56             49             49
Borrowings and bank             9         57             141            141
overdrafts
Derivative financial                      83             129            94
instruments
Provisions for other                      11             16             10
liabilities and charges
                                          625            671            676
Liabilities held for sale       11        –              7              15
                                          625            678            691
TOTAL LIABILITIES                         1 811          1 891          1 848
TOTAL SHAREHOLDERS’ EQUITY                2 788          2 853          2 906
AND LIABILITIES
                                                                        
                                                                        

CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

                                  Six months to   Six months   Year to
                                                        to
                                      30 September      30             31
                                                        September      March
                            Notes     2012              2011           2012
                                £m              £m           £m
Cash flows from
operating activities
Profit before tax from                172               241            379
continuing operations
Adjustments for:
Depreciation and
impairment of property,               48                42             85
plant and equipment
Exceptional items, net                (9       )        (75    )       (84   )
of cash flow impact
Amortisation of                       9                 9              18
intangible assets
Share-based payments                  7                 5              11
Finance income              4         (2       )        (5     )       (8    )
Finance expense             4         17                19             33
Changes in working                    8                 (21    )       (121  )
capital
Changes in net
retirement benefit                    (22      )        (39    )       (80   )
obligations
Cash generated from                   228               176            233
continuing operations
Interest paid                         (18      )        (24    )       (43   )
Net income tax                        (7       )        19             16
(paid)/received
Net cash generated from     8         11               24            25    
discontinued operations
Net cash generated from               214              195           231   
operating activities
                                                                       
Cash flows from
investing activities
Interest received                     1                 2              3
Proceeds on disposal of
property, plant and                   –                 –              2
equipment
Purchase of
available-for-sale                    (2       )        (3     )       (6    )
financial assets
Disposal of joint
ventures, net of cash       10        15                –              –
disposal
Disposal of businesses,     10        28                –              1
net of cash disposed
Disposal of
available-for-sale                    –                 –              18
financial assets
Acquisition of
businesses, net of cash               –                 (7     )       (7    )
acquired
Purchase of property,                 (41      )        (35    )       (102  )
plant and equipment
Purchase of intangible
assets and other                      (19      )        (10    )       (28   )
non-current assets
Net cash generated from
investing activities in     8         –                1             2     
discontinued operations
Net cash used in                      (18      )        (52    )       (117  )
investing activities
                                                                       
Cash flows from
financing activities
Proceeds from issuance
of ordinary and                       –                 1              3
treasury shares
Repurchase of ordinary                (23      )        (4     )       (19   )
shares
Cash inflow from                      18                9              8
additional borrowings
Cash outflow from                     (117     )        (194   )       (188  )
repayment of borrowings
Cash outflow from
repayment of capital                  (1       )        (2     )       (5    )
element of finance
leases
Dividends paid to the       7         (83      )        (79    )       (112  )
owners of the Company
Dividends paid to
non-controlling                       (2       )        –              –
interests
Net cash used in
financing activities in     8         –                –             (2    )
discontinued operations
Net cash used in                      (208     )        (269   )       (315  )
financing activities
                                                                     
Net decrease in cash        9         (12      )        (126   )       (201  )
and cash equivalents
                                                                       
Cash and cash
equivalents:
Balance at beginning of               446               654            654
period
Effect of changes in                  (15      )        3              (7    )
foreign exchange rates
Net decrease in cash                  (12      )        (126   )       (201  )
and cash equivalents
Balance at end of           9         419              531           446   
period
                                                                             
                                                                             

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED)

                  Share                                    Attributable              
                   capital   Capital                            to the         Non-          Total
                   & share   redemption   Other      Retained   owners of      controlling   shareholders
                   premium   reserve      reserves   earnings   the Company    interests     equity
                 £m       £m          £m        £m        £m            £m           £m
Balance at 1       523       8            175        244        950            23            973
April 2011
Other
comprehensive      –         –            (20   )    (94   )    (114     )     1             (113     )
(expense)/income
for the period
Profit for the     –         –            –          175        175            2             177
period
Share-based
payments charge,   –         –            –          7          7              –             7
including tax
Share repurchase   –         –            –          (4    )    (4       )     –             (4       )
Proceeds from      –         –            –          1          1              –             1
shares issued
Dividends paid     –        –           –        (79   )   (79      )    –           (79      )
Balance at 30      523      8           155      250      936          26          962      
September 2011
                                                                                                          
                                                                                                          
Balance at 1       523       8            175        244        950            23            973
April 2011
Other
comprehensive      –         –            (47   )    (60   )    (107     )     –             (107     )
expense for the
year
Profit for the     –         –            –          305        305            4             309
year
Share-based
payments charge,   –         –            –          13         13             –             13
including tax
Proceeds from      –         –            –          3          3              –             3
shares issued
Share repurchase   –         –            –          (19   )    (19      )     –             (19      )
Dividends paid     –        –           –        (112  )   (112     )    (2     )     (114     )
Balance at 31      523      8           128      374      1 033        25          1 058    
March 2012
                                                                                                          
                                                                                                          
Balance at 1       523       8            128        374        1 033          25            1 058
April 2012
Other
comprehensive      –         –            (39   )    (84   )    (123     )     1             (122     )
(expense)/income
for the period
Profit for the     –         –            –          166        166            1             167
period
Share-based
payments charge,   –         –            –          7          7              –             7
including tax
Share repurchase   –         –            –          (23   )    (23      )     –             (23      )
Dividends paid     –         –            –          (83   )    (83      )     (2     )      (85      )
Non-controlling
interests          –        –           –        –        –            (25    )     (25      )
disposed
Balance at 30      523      8           89       357      977          –           977      
September 2012
                                                                                                          
                                                                                                          

1. Presentation of half year financial information

General information

The principal activities of Tate & Lyle PLC are the development, manufacture
and marketing of food and industrial ingredients that have been made from
renewable resources. The Group operates over 30 production facilities globally
through its subsidiary companies, partnerships and joint ventures.

The Company is a public limited company incorporated and domiciled in the
United Kingdom. The address of its registered office is 1 Kingsway, London
WC2B 6AT. The Company has its primary listing on the London Stock Exchange.

Basis of preparation

This condensed set of consolidated financial information for the six months
ended 30 September 2012 has been prepared on a going concern basis in
accordance with the Disclosure and Transparency Rules of the Financial
Services Authority and with IAS 34 Interim Financial Reporting as adopted by
the European Union. The condensed set of consolidated financial information
should be read in conjunction with the annual financial statements for the
year ended 31 March 2012, which have been prepared in accordance with IFRSs as
adopted by the European Union.

Having reviewed the Group’s latest projected results, cash flows, liquidity
position and borrowing facilities, the Directors have a reasonable expectation
that the Group has adequate resources to continue in existence for the
foreseeable future. Accordingly, it is appropriate to continue to adopt the
going concern basis in preparing the condensed set of consolidated financial
information.

All businesses from the former Sugars segment are reported as discontinued
operations. In the current period, a number of disposals occurred which are
detailed in Note 10.

The condensed set of consolidated financial information is unaudited, but has
been reviewed by the external auditors. The condensed set of consolidated
financial information in the Statement of Half Year Results does not
constitute statutory accounts within the meaning of Section 434 of the
Companies Act 2006. The Group’s published consolidated financial statements
for the year ended 31 March 2012 were approved by the Board of Directors on 30
May 2012 and filed with the Registrar of Companies. The report of the auditors
on those accounts was unqualified and did not contain an emphasis of matter
paragraph or a statement under Section 498 (2) or (3) of the Companies Act
2006. The condensed set of consolidated financial information for the six
months ended 30 September 2012 on pages 14 to 35 was approved by the Board of
Directors on 7 November 2012.

Changes in accounting policy and disclosures

The accounting policies adopted in the preparation of the condensed set of
consolidated financial information are consistent with those of the Group’s
Annual Report and Accounts for the year ended 31 March 2012, other than the
adoption, with effect from 1 April 2012, of new or revised accounting
standards, as set out below:

- Amendment to IFRS 7 Financial instruments: Transfers of financial assets

The adoption of these standards and interpretations has not had a material
effect on the results or financial position of the Group. In the current
period, post-retirement benefit interest has been excluded from adjusted
earnings. All comparatives have been restated accordingly.

The following new standards, new interpretations and amendments to standards
and interpretations have been issued but are not effective for the financial
year beginning 1 April 2012 and have not been early adopted:

- IFRS 9 Financial Instruments
- IFRS 10 Consolidated Financial Statements
- IFRS 11 Joint Arrangements
- IFRS 12 Disclosure of Interest in Other Entities
- IFRS 13 Fair Value Measurement
- Amendment to IAS 19 Employee Benefits
- Annual improvements 2011

The amendment to IAS 19 will change the basis on which the financing charge is
calculated by applying the discount rate to the net defined benefit
obligation. For the period ended 30 September 2012, calculating the finance
charge in accordance with the new requirements would have increased net
finance costs, recognised outside adjusted earnings, by £4 million (2011 – £6
million). Under its current accounting policies the Group recognises actuarial
gains and losses directly in other comprehensive income, as required by the
new standard. The adoptions of the other standards may affect disclosures in
the Group’s financial statements.

In May 2011, the IASB issued IFRS 11 Joint Arrangements which, subject to
final EU endorsement, is expected to have a delayed effective date of
accounting periods beginning on or after 1 January 2014. While the net result
and net assets of the Group will remain unchanged, the presentation of the
Consolidated Income Statement, Consolidated Statement of Financial Position
and Consolidated Statement of Cash Flow will change significantly as IFRS 11
prohibits proportionate consolidation of joint ventures which is the Group’s
current accounting policy, as allowed under IAS 31. Under IFRS 11, joint
ventures will be equity accounted. Operating segment results will remain
unchanged and continue to proportionately consolidate joint ventures
reflecting internal reporting to the Group’s Chief Operating Decision Maker.

Use of adjusted measures

Tate & Lyle presents adjusted operating profit, profit before tax and 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, post-retirement benefit
interest and amortisation of intangible assets acquired through business
combinations. A reconciliation to reported information is provided in Note 16.

Seasonality

The Group's principal exposure to seasonality is in relation to working
capital. The Group's inventories are subject to seasonal fluctuations
reflecting crop harvesting and purchases. Inventory levels typically increase
progressively from September to November and gradually reduce in the first six
months of the calendar year.

2. Segment information

The continuing operations of the Group consist of three distinct segments:
Speciality Food Ingredients, Bulk Ingredients and Central costs.

Central costs, which include head office, treasury and reinsurance activities,
does not meet the operating segment definition under IFRS 8 but has been
disclosed as a reportable segment in the tables below to be consistent with
internal management reporting.

In the current period there has been a change to internal management reporting
which eliminates intersegment sales.

Discontinued operations (Note 8) comprise the former Sugars businesses in both
the current and comparative periods.

The segment results for the six months to 30 September 2012 were as follows:

                 Continuing operations                                      
                                                    
                  Speciality                                     Discontinued
                  Food          Bulk          Central            operations     Total
                  Ingredients   Ingredients   Costs     Total    (Note 8)       operations
                £m           £m           £m       £m      £m            £m
Sales
Total sales       471           1 160         –         1        10             1 641
                                                        631
Inter-segment     –            –            –        –       –              –       
sales
External sales    471          1 160        –        1       10             1 641   
                                                        631
                                                                                
Operating
profit/(loss)
Before
exceptional
items and                                                                 
amortisation
of intangible                                                             
assets acquired
through           108           101           (14  )    195      3              198
business
combinations
Exceptional       (1      )     8             (9   )    (2   )   21             19
items (Note 3)
Amortisation of
intangible
assets                                                                          
acquired                                          
through           (6      )     –             –         (6   )   –              (6      )
business
combinations
Operating         101          109          (23  )    187      24             211
profit/(loss)
Net finance
expense before
post-retirement                                         (16  )   –              (16     )
benefit
interest
Net
post-retirement                                         1       –              1       
benefit
interest credit
Profit before                                           172     24             196     
tax
                                                                                
Adjusted
operating         22.9    %     8.7     %     –         12.0 %
margin
                                                                                
Operating         21.4    %     9.4     %     –         11.5 %
margin
                                                                                

The comparative segment results for the six months to 30 September 2011 were
as follows:

                 Continuing operations                                      
                                                    
                  Speciality                                     Discontinued
                  Food          Bulk          Central            operations     Total
                  Ingredients   Ingredients   costs     Total    (Note 8)       operations
                 £m           £m           £m       £m      £m            £m
Sales
Total sales       505           1 130         –         1        50             1 685
                                                        635
Inter-segment     (55     )     (40     )     –        (95  )   –              (95     )
sales
External sales    450          1 090        –        1       50             1 590   
                                                        540
                                                                                
Operating
profit/(loss)
Before
exceptional
items and
amortisation                                                              
of intangible
assets acquired   116           96            (18  )    194      3              197
through
business
combinations
Exceptional       70            –             (4   )    66       –              66
items (Note 3)
Amortisation of
intangible
assets                                                                          
acquired                                          
through           (5      )     –             –         (5   )   –              (5      )
business
combinations
Operating         181          96           (22  )    255      3              258
profit/(loss)
Net finance
expense before
post-retirement                                         (17  )   –              (17     )
benefit
interest
Net
post-retirement                                         3       –              3       
benefit
interest credit
Profit before                                           241     3              244     
tax
                                                                                
Adjusted
operating         25.8    %     8.8     %     –         12.6 %
margin
                                                                                
Operating         40.2    %     8.8     %     –         16.6 %
margin
                                                                                

The segment results for the year to 31 March 2012 were as follows:

                 Continuing operations                                      
                                                    
                                                                                
                  Speciality                                     Discontinued
                  Food          Bulk          Central            operations     Total
                  Ingredients   Ingredients   costs     Total    (Note 8)       operations
                £m           £m           £m       £m      £m            £m
Sales
Total sales       992           2 277         –         3        72             3 341
                                                        269
Inter-segment     (105    )     (76     )     –        (181 )   –              (181    )
sales
External sales    887          2 201        –        3       72             3 160   
                                                        088
                                                                                
Operating
profit/(loss)
Before
exceptional
items and
amortisation
of intangible     214           172           (38  )    348      5              353
assets acquired
through
business
combinations
Exceptional       70            7             (9   )    68       11             79
items (Note 3)
Amortisation of
intangible
assets
acquired          (12     )     –            –        (12  )   –              (12     )
through
business
combinations
Operating         272          179          (47  )    404      16             420
profit/(loss)
Net finance
(expense)/                                                                          
income before
post-retirement                                         (30  )   1              (29     )
benefit
interest
Net
post-retirement                                         5       –              5       
benefit
interest credit
Profit before                                           379     17             396     
tax
                                                                                
Adjusted
operating         24.1    %     7.8     %     –         11.3 %
margin
                                                                                
Operating         30.7    %     8.1     %     –         13.1 %
margin
                                                                                

3. Exceptional items

                                Six months to   Six months to   Year to
                                  30 September      30 September      31 March
                                  2012              2011              2012
                               £m              £m              £m
Continuing
Gain on disposal of joint         8                 –                 –
venture – Sucromiles (a)
Business transformation costs     (10     )         (7      )         (15   )
(b)
Reversal of fixed asset
impairment – McIntosh and         –                 53                60
Decatur assets (c)
Reversal of provision –           –                20               23    
McIntosh (c)
                                  (2      )         66               68    
Discontinued
Gain on disposal of
subsidiary – Vietnam Sugar        21                –                 –
(d)
Gain on disposal of minority
holdings – International          –                –                11    
Sugar Trading (e)
                                  21               –                11    
Total                             19               66               79    
                                                                      

Continuing operations

(a) On 1 August 2012, the Group completed the disposal of its share in
Sucromiles SA (Sucromiles), its Colombian citric acid joint venture, to its
former joint venture partner, Organizacion Ardila Lulle. After recycling
foreign exchange revaluation gains previously held in reserves to the income
statement, a gain on disposal of £8 million was recorded and is reported in
the Bulk Ingredients segment. Further details are set out in Note 10.

(b) The Group has recognised an exceptional charge of £10 million (30
September 2011 – £7 million, 31 March 2012 – £15 million) in relation to
business transformation costs. The Group incurred £9 million (30 September
2011 – £4 million; 31 March 2012 – £9 million) of costs that did not meet the
capitalisation criteria associated with the implementation of a common global
IS/IT platform and Global Shared Services Centre, and £1 million (30 September
2011 – £2 million; 31 March 2012 – £5 million) in relation to the relocation
of employees and restructuring associated with the new Commercial and Food
Innovation Centre in Chicago, Illinois. In the prior period, £1 million (31
March 2012 – £1 million) of closure and other restructuring costs were
incurred in relation to the Food Systems business. These costs are reported in
the Speciality Food Ingredients segment (£1 million; 30 September 2011 – £3
million; 31 March 2012 – £6 million) and within Central costs (£9 million; 30
September 2011 – £4 million; 31 March 2012 – £9 million).

(c) In May 2011, the Group took the decision to re-open the mothballed
facility in McIntosh, Alabama and restart the production of sucralose. This
decision has resulted in the reversal of £53 million of the impairment charge
previously recognised against property, plant and equipment. In addition, £23
million (30 September 2011 – £20 million) of the provision in respect of
obligations relating to the mothballed facility was no longer required and was
also reversed. These exceptional items were reported within the Speciality
Food Ingredients segment.

In addition, in November 2010 the Group signed an agreement with Amyris, Inc.
to manufacture Trans-beta-Farnesene using assets located at the Decatur,
Illinois plant that were previously redundant. Commercial viability of the new
production process was proven in the second half of the year to 31 March 2012
resulting in a £7 million reversal of the write down previously recognised
against property, plant and equipment. This exceptional item was reported
within the Bulk Ingredients segment.

The tax impact on continuing net exceptional items is a £2 million credit (30
September 2011 - £28 million charge; 31 March 2012 – £31 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, in the
prior year there was an exceptional tax credit of £10 million which
represented the recognition of a deferred tax asset in respect of foreign tax
credits recognised in association with the disposal of the ethanol facility in
Fort Dodge, Iowa.

Discontinued operations

(d) On 29 June 2012, the Group completed the sale of Vietnam Sugar to TH Milk
Food Stock Company. After recycling foreign exchange revaluation gains
previously held in reserves to the income statement, a gain on disposal of £21
million was recorded. Further details are set out in Note 10.

(e) In the prior year, the Group completed the sale of its minority holdings
in Egypt and Saudi Arabia relating to the former International Sugar Trading
business and received £18 million in cash consideration. After recycling
foreign exchange revaluation gains to the income statement, the Group recorded
an exceptional gain of £11 million.

The tax impact on discontinued net exceptional items for the period is £nil
(30 September 2011 - £nil; 31 March 2012 – £15 million).

4. Finance income and finance expense

                                Six months to   Six months to   Year to
                                  30 September      30 September      31 March
                                  2012              2011              2012
Continuing                      £m              £m              £m
Finance income
                                  1                 2                 3
Interest receivable
Net finance income arising on
defined benefit retirement
schemes:
– expected return on plan         36                39                78
assets
– interest cost                   (35     )         (36     )         (73   )
Total finance income              2                5                8     
                                                                      
Finance expense
Interest payable on bank and      (15     )         (18     )         (31   )
other borrowings
Finance lease charges             (1      )         (1      )         (1    )
Fair value gain/(loss) on
interest-related derivative
instruments:
– interest rate swaps – fair      5                 21                20
value hedges
– derivatives not designated      (1      )         (1      )         (3    )
as hedges
Fair value adjustment of
borrowings attributable to        (5      )         (20     )         (18   )
interest rate risk
Total finance expense             (17     )         (19     )         (33   )
                                                                      
Net finance expense               (15     )         (14     )         (25   )
                                                                      

Finance expense is shown net of borrowing costs of £1 million (six months to
30 September 2011 – £nil; year to 31 March 2012 – £1 million) capitalised into
the cost of assets.

Discontinued
Included within the profit for the six months to 30 September 2012 in relation
to discontinued operations is net finance income of £nil (six months to 30
September 2011 – £nil; year to 31 March 2012 – £1 million).

5. Income tax expense

                         Six months to    Six months to    Year to
                            30 September        30 September        31 March
                            2012                2011                2012
Continuing               £m               £m               £m
Current tax:
In respect of the
current period
– UK                        –                   –                   –
– Overseas                  14               8                7      
                            14                  8                   7
Deferred tax charge         15                  49                  73
Exceptional tax             –                   –                   (10    )
credit
Adjustments in
respect of previous         –                   –                   2      
years
Income tax expense          29                  57                  72     
                                                                             
Details of the exceptional tax credit in the year to 31 March 2012 are set
out in Note 3.
                                                                             
                            Six months to       Six months to       Year to
                            30 September        30 September        31 March
                            2012                2011                2012
Discontinued             £m               £m               £m
Current tax:
– Overseas taxation         –                   10                  15     
                            –                   10                  15
Deferred tax                –                   –                   –      
Income tax expense          –                   10                  15     
                                                                             

In the prior period within discontinued operations, overseas taxation includes
a £9 million charge (year to 31 March 2012 – £15 million charge) relating to
outstanding tax matters associated with starch facilities which formed part of
the former Food & Industrial Ingredients, Europe segment, which are in the
process of litigation. These facilities were disposed of by the Group in the
year ended 31 March 2008.

6. Earnings per share

Basic

Basic earnings per share is calculated by dividing the profit attributable to
owners of the Company by the weighted average number of ordinary shares in
issue during the period, excluding ordinary shares purchased by the Company
and held in the employee share ownership trust or in treasury.

                 Six months to                      Six months to
                  30 September 2012                   30 September 2011
                  Continuing  Discontinued          Continuing  Discontinued 
                operations  operations    Total  Operations  operations    Total
Profit/(loss)
attributable to   143          23             166     184          (9)            175
owners of the
Company (£m)
Weighted
average number
of ordinary       464.7        464.7          464.7   465.9        465.9          465.9
shares in issue
(millions)
Basic
earnings/(loss)   30.8p        4.9p           35.7p   39.5p        (1.9)p         37.6p
per share
                                                      
                  Year to
                  31 March 2012
                  Continuing   Discontinued
                operations  operations    Total
Profit/(loss)
attributable to   307          (2)            305
owners of the
Company (£m)
Weighted
average number
of ordinary       465.7        465.7          465.7
shares in issue
(millions)
Basic
earnings/(loss)   65.9p        (0.4)p         65.5p
per share
                                                      

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 performance conditions at the end of the
reporting period, and the number of shares which would be issued based on the
status at the end of the reporting period.

                 Six months to                      Six months to
                  30 September 2012                   30 September 2011
                  Continuing  Discontinued          Continuing  Discontinued 
                 operations  operations    Total  Operations  operations    Total
Profit/(loss)
attributable to   143          23             166     184          (9)            175
owners of the
Company (£m)
Weighted
average number
of diluted        472.9        472.9          472.9   473.9        473.9          473.9
shares
(millions)
Diluted
earnings/(loss)   30.2p        4.9p           35.1p   38.9p        (1.9)p         37.0p
per share
                  Year to
                  31 March 2012
                  Continuing   Discontinued
                 operations  operations    Total
Profit/(loss)
attributable to   307          (2)            305
owners of the
Company (£m)
Weighted
average number
of diluted        474.9        474.9          474.9
shares
(millions)
Diluted
earnings/(loss)   64.6p        (0.3)p         64.3p
per share
                                                      

The adjustment for the dilutive effect of share options at 30 September 2012
was 8.2 million (30 September 2011 – 8.0 million; 31 March 2012 – 9.2
million).

Adjusted earnings per share

Adjusted earnings per share is stated after excluding exceptional items,
amortisation of intangible assets acquired through business combinations and
post-retirement benefit interest, as follows:

                                                    Restated       Restated
                                      Six months to   Six months to   Year to
                                      30 September    30 September    31 March
Continuing operations                2012           2011           2012
Profit attributable to owners of      143             184             307
the Company (£m)
Adjustments for (£m):
– exceptional items (Note 3)          2               (66)            (68)
– amortisation of intangible assets
acquired through
business combinations                 6               5               12
– net post-retirement benefit         (1)             (3)             (5)
interest credit
– tax effect on the above             (5)             25              14
adjustments
– exceptional tax credit              –               –               (10)
Adjusted profit (£m)                  145             145             250
                                                                      
Adjusted basic earnings per share     31.2p           31.2p           55.8p
from continuing operations
Adjusted diluted earnings per share   30.7p           30.7p           54.7p
from continuing operations
                                                                      

7. Dividends

The Directors have declared an interim dividend of 7.4p per share for the six
months to 30 September 2012 (30 September 2011 – 7.1p per share), payable on 4
January 2013.

The final dividend for the year to 31 March 2012 of £83 million, representing
17.8p per share, was paid during the six months to 30 September 2012.

8. Discontinued operations

In July 2010, the Group announced its intention to sell the remaining
businesses within the former Sugars segment. Accordingly, the results of these
Sugars businesses are presented as discontinued operations in both the current
and comparative periods. In the current period, the Group completed the sale
of Vietnam Sugar along with the disposal of its remaining International Sugar
Trading interests and assets in its Israel Sugar operations. Further details
can be found in Note 10. The results relating to International Sugar Trading
and Israel Sugar are presented within the Other category below. In the prior
period, Other also includes £9 million of income tax expense (year to 31 March
2012 – £15 million) in respect of outstanding tax matters associated with the
starch facilities that formed part of the former Food & Industrial
Ingredients, Europe segment, which are in the process of litigation.

                                           Six months to 30 September 2012
                                                                    
                                             Vietnam Sugar     Other     Total
                                          £m              £m      £m
Sales                                        9                 1         10
                                                                         
Operating profit before exceptional          3                 –         3
items
Exceptional items (Note 3)                 21             –      21  
Operating profit and profit before tax       24                –         24
Income tax expense (Note 5)                –              –      –   
Profit for the period                        24                –         24
Non-controlling interests                  (1      )       –      (1  )
Profit attributable to owners of the       23             –      23  
Company
                                             
                                             Six months to 30 September 2011
                                                                         
                                             Vietnam Sugar     Other     Total
                                          £m              £m      £m
Sales                                        18                32        50
                                                                         
Operating profit/(loss) before               4                 (1  )     3
exceptional items
Exceptional items (Note 3)                 –              –      –   
Operating profit/(loss) and                  4                 (1  )     3
profit/(loss) before tax
Income tax expense (Note 5)                –              (10 )   (10 )
Profit/(loss) for the period                 4                 (11 )     (7  )
Non-controlling interests                  (2      )       –      (2  )
Profit/(loss) attributable to owners of    2              (11 )   (9  )
the Company
                                             
                                             Year to 31 March 2012
                                                                         
                                             Vietnam Sugar     Other     Total
                                          £m              £m      £m
Sales                                        31                41        72
                                                                         
Operating profit/(loss) before               7                 (2  )     5
exceptional items
Exceptional items (Note 3)                 –              11     11  
Operating profit                             7                 9         16
Finance income                               2                 –         2
Finance expense                            –              (1  )   (1  )
Profit before tax                            9                 8         17
Income tax expense (Note 5)                –              (15 )   (15 )
Profit/(loss) for the period                 9                 (7  )     2
Non-controlling interests                  (4      )       –      (4  )
Profit/(loss) attributable to owners of    5              (7  )   (2  )
the Company
                                                                         

Net cash flows from discontinued operations are as follows:

                                  Six months to 30 September 2012
                                                                
                                     Vietnam Sugar       Other           Total
                                 £m               £m         £m
Net cash generated from              4               7          11  
operating activities
                                     
                                     Six months to 30 September 2011
                                                                         
                                     Vietnam Sugar       Other           Total
                                 £m               £m         £m
Net cash generated from              14                  10              24
operating activities
Net cash generated from              1               –          1   
investing activities
                                     
                                     Year to 31 March 2012
                                                                         
                                     Vietnam Sugar       Other           Total
                                 £m               £m         £m
Net cash generated from              10                  15              25
operating activities
Net cash generated from              2                   –               2
investing activities
Net cash used in financing           (2      )        –          (2  )
activities
                                                                         

9. Net debt

The components of the Group’s net debt profile are as follows:

                                  30 September   30 September   31 March
                                    2012             2011             2012
                                 £m             £m             £m
Non-current borrowings              (803    )        (822    )        (805  )
Current borrowings and bank         (57     )        (141    )        (141  )
overdrafts
Debt-related derivative             55               22               24
instruments
Cash and cash equivalents           419              531              424
Assets held for sale – cash and     –               –               22    
cash equivalents
Net debt                            (386    )        (410    )        (476  )
                                                                      

Derivative financial instruments presented within assets and liabilities in
the statement of financial position of £71 million net asset (30 September
2011 – £13 million; 31 March 2012 – £24 million) comprise net debt-related
instruments of £55 million asset (30 September 2011 – £22 million; 31 March
2012 – £24 million) and non net debt-related instruments of £16 million asset
(30 September 2011 – £9 million liability; 31 March 2012 – £nil). Additional
net non-debt related instruments of £16 million asset at 30 September 2011 and
£8 million asset at 31 March 2012 were included in assets and liabilities held
for sale (Note 11).

Movements in the Group’s net debt profile are as follows:

                                 Six months to   Six months to   Year to
                                  30 September      30 September      31 March
                                  2012              2011              2012
                                £m              £m              £m
Balance at beginning of period    (476     )        (464     )        (464   )
Cash outflow from movement in     100               187               185
borrowings
Decrease in cash and cash         (12      )        (126     )        (201   )
equivalents in the period
Inception of finance leases       –                 –                 (7     )
Fair value and other movements    7                 6                 7
Exchange                          (5       )        (13      )        4      
Decrease/(increase) in net debt   90               54               (12    )
in the period
Balance at end of the period      (386     )        (410     )        (476   )
                                                                      

10. Disposals

Continuing operations
Sucromiles
On 1 August 2012, the Group completed the disposal of its share in Sucromiles
SA (Sucromiles), its Colombian citric acid joint venture, to its former joint
venture partner, Organizacion Ardila Lulle, for consideration of £20 million.
After recycling foreign exchange revaluation gains to the income statement, an
exceptional gain on disposal of £8 million was recorded within continuing
operations.

Discontinued operations
Vietnam Sugar
On 29 June 2012, the Group completed the sale of Vietnam Sugar to TH Milk Food
Stock Company for consideration of £45 million. After recycling foreign
exchange revaluation gains to the income statement, an exceptional gain on
disposal of £21 million was recorded within discontinued operations.

EU Sugars
During the period, the Group received £2 million in respect of a working
capital settlement from its disposal of the EU Sugars business to American
Sugar Refining during the year ended 31 March 2011.

Other
During the period, the Group disposed of the remaining assets in the Israel
Sugar business, resulting in a profit of £2 million. This has been offset by
losses from the disposal of other assets within Group relating to Sugar
operations which are discontinued.

The calculations of the results on disposal in the current period, split
between continuing and discontinued operations, are shown below:

*Story too large*
                                        Six months to 30 September 2012
                                           Continuing  Discontinued 
                                           operations   operations     Total
                                       £m          £m            £m
Property, plant and equipment              3            18             21
Intangible assets                          −            2              2
Derivative financial instruments –         −            4              4
assets
Inventories                                9            10             19
Trade and other receivables                9            13             22
Trade and other payables                   (6    )      (3      )      (9  )
Derivative financial instruments –         −            (4      )      (4  )
liabilities
Cash and cash equivalents                  5            22             27
Taxation                                   −          (1      )     (1  )
Total assets disposed                      20           61             81
Non-controlling interests disposed         −          (25     )     (25 )
Net assets disposed                        20         36           56  
                                                                             
Total consideration                        20           54             74
                                                                             
Other items:
Disposal costs                             −            (3      )      (3  )
Exchange differences reclassified          8          6            14  
from OCI
Gain on disposal                           8          21           29  
                                                                             
Reported as:
Exceptional gain within continuing         8            −              8
operations (Note 3)
Operating loss within discontinued         −            (2      )      (2  )
operations (Note 8)
Exceptional gain within discontinued       −            21             21
operations (Note 3)
Operating gain within discontinued         −          2            2   
operations (Note 8)
                                           8          21           29  
                                                                             
Cash flows:
Cash consideration                         20           50             70
Cash disposed

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