Shareholders & Lenders

Our strategy is focused on creating shareholder value through organic growth, geographic expansion into higher-growth markets and strategic acquisitions. We apply disciplined criteria to all potential acquisitions and capital investments to ensure that they are expected to create value. As a Group, we also ensure that we have in place robust financial, operational and risk management systems.

We place considerable emphasis on regular communication with our shareholders and lenders in order to provide a clear understanding of our business strategy, performance, policies, and prospects.

We are also committed to engaging with regulatory bodies in determining the scope and shape of future reporting requirements.

Funding and Distribution

Tomkins is financed through a mixture of equity and debt. At the end of 2008, the Group's capital was $2,087.2 million (2007: $2,729.3 million). Our cost of capital is determined by our ability to compete for capital in a competitive marketplace and this directly impacts our ability to generate value for shareholders.

We manage the Group's capital structure to maximise shareholder value whilst retaining flexibility to take advantage of opportunities which arise to grow the business. Our policy is to fund new investments first from existing cash resources and then from borrowings. It is our intention to maintain surplus undrawn committed borrowing facilities sufficient to enable us to manage the Group's liquidity through the operating and investment cycles.

We maintain a regular dialogue with the credit rating agencies and the potential impact on our credit rating is taken into consideration when making capital allocation decisions. In terms of distributions to shareholders, the Board's policy is to pay a dividend appropriate to the prevailing market conditions and outlook.

Stakeholder dialogue - investment community

The promotion of good communications with the investment community is paramount. At Group level, we discuss our performance with our shareholders and the investment community, third-party survey and ratings agencies and other interested parties. Communications with the investment community are directed through the Corporate Communications department, based at our London head office. In the spirit of transparent disclosure, as investor relations information is released to the market, it is also made available to download from our website.

2008 CSR report

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