Tate & Lyle - Effect of Adoption of IFRS 11 'Joint Arrangements’

ACCOUNTING FOR JOINT VENTURES

With effect from 1 April 2014, Tate & Lyle adopted IFRS 11 ‘Joint Arrangements’ which will change significantly the basis of accounting for its interests in joint ventures.

Previously, the Group’s interests in joint ventures were accounted for by proportionate consolidation, whereby the Group’s share of the income and expenses, assets and liabilities and cash flows of joint ventures was combined on a line-by-line basis with those of Tate & Lyle PLC and its subsidiaries. IFRS 11 prohibits the use of proportionate consolidation and requires that joint ventures are accounted for using the equity method of accounting. Under the equity method of accounting, the Group’s share of the after tax profits and losses of the joint ventures are shown on one line of the consolidated income statement, its share of their net assets are shown on one line of the consolidated statement of financial position and the consolidated statement of cash flows reflects cash flows between the Group and the joint ventures (investments in and dividends received from joint ventures) within cash flows from investing activities.

The Group’s results announcements in respect of the year ending 31 March 2015 will include comparative amounts for the year ended 31 March 2014 restated in accordance with IFRS 11. In order to assist users in understanding the effect of this change, we publish today reconciliations showing the effect of IFRS 11 on the Group’s statutory results, financial position and cash flows for the year ended 31 March 2014 (‘FY14’) and for the six months ended 30 September 2013 (‘HY14’).

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