Introduction

Up to 1 May 2008, all references to the Board, Board meetings, Committee meetings, appointments and resignations that are referred to in this report are in relation to Cadbury Schweppes plc, which was the ultimate parent company of the Group until that date. From 2 May 2008, such references are in relation to Cadbury plc, which became the new ultimate parent company of the Group by means of a Scheme of Arrangement.

This report has been prepared in accordance with the Code of Best Practice set out in section 1 of the June 2006 FRC Combined Code on Corporate Governance (the "Code"). The Group has complied with the code provisions of section 1 of the Code, and applied the main principles and supporting principles, throughout the year except in the two minor instances explained below. Further explanation of how the principles have been applied is set out below and in the Directors’ Remuneration Report and Audit Committee Report. We expect to comply fully with the Code (and apply the main principles and supporting principles) of the June 2008 FRC Combined Code on Corporate Governance (the "revised Code"), which takes effect for the financial year commencing 1 January 2009.

The Board remains committed to the principles of good corporate governance and to achieving high standards of business integrity, ethics and professionalism across all our activities. The Board of Cadbury plc adopted a Statement of Corporate Governance Principles on 30 April 2008, which explains the principles that guide corporate governance for the Group and ensures that the Group acts in the best interests of its stakeholders. The Group also has both a Financial Code of Ethics (that applies to the Chief Executive Officer, Chief Financial Officer and senior financial officers in the Group) and a code of conduct (Our Business Principles) that apply at Board level and to all managers across the Group. All executive members of the Board, the CEC and the executive managers are required to confirm their compliance with Our Business Principles on an annual basis. We have established a confidential, all employee Speaking Up helpline available in most languages, enabling employees to report concerns of breaches of Our Business Principles or usual standards of good behaviour. The Statement of Corporate Governance Principles, Financial Code of Ethics and Our Business Principles are available on the Group’s website, www.cadbury.com.