6. REMUNERATION REPORT

Dear Shareholder

Welcome to the Remuneration Report for the 2008 financial year. As in previous years, our aim has been to produce a report that is clear and comprehensible while meeting the highest standards of disclosure.

As foreshadowed in last year’s Report, the Committee has undertaken a review of our executive incentive arrangements against our remuneration policy. As in prior years, the Committee had the benefit of independent advice from Kepler Associates. As a result of that review, the Board will propose some changes to the operation of the Group Incentive Scheme for members of the Group Management Committee. That proposal will be made to shareholders at the 2008 Annual General Meetings and is explained in detail in the Notices convening those meetings.

On behalf of the Committee, I thank you for your interest in our Report.

Signature of John Buchanan

John Buchanan

Chairman, Remuneration Committee

9 September 2008