Annual Report and Accounts 2006

A discussion of our expectation of the 2007 Underlying trading performance is set out within the 'Strategic review' (page 15).

In 2007, following the completion of expenditure on the Fuel for Growth programme, future restructuring costs will be included in our Underlying results. Ongoing restructuring costs, other than acquisition integration and significant individual events, are expected to be approximately 1% of revenue.

In December 2005, we announced our intention to build a new green-field gum factory in Poland. Following commissioning of the factory in 2008, we will significantly reduce our gum supply requirements from Gumlink A/S and hence incur minimum penalties under the terms of the agreement. In addition, the costs of integrating CSBG will continue to be recognised outside Underlying in 2007. In 2007, we expect these charges to total around £30 million.

In 2007 the average interest rate on debt is expected to remain at approximately 5%.

The 2007 tax rate will be dependent on a number of factors including the possible resolution of tax cases with various tax authorities and the tax consequences of any acquisitions or disposals in the year. However we expect the tax on Underlying profits to be in the range of 30-31%.