My name is Margaret Nollen, Vice President Investor Relations for the H.J. Heinz Company. I’d like to welcome everyone to our 2009 Analyst and Investor Day. For those of you attending today’s session all of your conference materials are included in the folder. If you don’t have one, just raise your hand and we’ve got folks passing those out. Each speaker’s presentation is separate and the agenda for the day is in the front of the folder. Updated financial and statistical summaries are also included in the back of your packet which now includes five years of financial and sales history. For those of you on the simultaneous listen-only call or webcast, the presentation and stat pages are available on our website at www.heinz.com in the Investor section. We have a great update planned for you today starting with a strategic overview by William Johnson, a detailed walk through by Art Winkleblack of our FY09 results and F10 plans. This will include a thorough analysis of foreign exchange impacts on our business. In addition we will have presentations from our largest markets, North America and Europe, with David Moran and Scott O’Hara. Mike Milone will be participating during the Q&A session. Mike is responsible for rest of world and quality. Our schedule is a bit tight today so let me lay out the parameters and you can be prepared to get the maximum benefit. We have presentations scheduled throughout the morning, from 8:30 to just after 10:00. There will be one quick 10-minute break about 9:30. To ensure we stay on schedule we have a single Q&A session at the end of our formal presentations or from about 10:00 to 11:00. So fair warning, keep your questions handy throughout the morning. As a reminder questions will be taken from those persons attending the presentation today here at The New York Stock Exchange and a special thank you to our friends here for use of their facilities. Now before we begin let me refer you to the forward-looking statements, during our presentation we may make predictive statements that are intended to clarify results for your understanding. We ask you to refer to our 2008 Form 10-K as well as our press release today which list some of the factors that could cause actual results to differ materially from our predictions. We undertake no obligation to update or revise any forward-looking statements. We may also use non-GAAP financial measures in our presentation as the company believes such measures allow for consistent period-to-period comparisons of the business. The most directly comparable GAAP financial measures and reconciliations of these non-GAAP measures are available in the company’s earnings release and at the back of our presentation today. And now the day begins. I’d like to turn it over to William Johnson, Chairman, President and CEO of H.J. Heinz.

Thank you Margaret, I have to thank [Angela Zarr, Eric Sirota and David Driscoll] without whom I wouldn’t be here today. The guard refused to let me in. They vouched that I wasn’t an analyst and that seemed to convince him. Secondly as part of your gifts what we forgot to give you was a currency calculator and I think you’ll find that handy as Art goes through his comments later. On behalf of Heinz and our Senior Management team I want to welcome you to the NYSC for our 2009 Investor and Analyst Meeting. Our purpose today is to share with you the excellent results we’ve generated over the past three years, recap our record 2009 performance, review consumer and customer trends, and discuss our outlook for fiscal 2010. Our message is unmistakably clear, Heinz is a healthy company with strong category leading brands and core businesses that are performing well in a difficult environment. On an operating basis we expect to deliver another year of growth on constant currency basis in fiscal 2010. History tells us that the unprecedented volatility in currency is cyclical and is certainly outside of our control. Putting it aside you will see why I continue to be encouraged about our prospects in fiscal 2010 and beyond. We have great brands, a focused global portfolio in categories where we are positioned to win and a strategy that has delivered good results over the last three years. Equally important we have a nimble proactive management team that has worked together for a number of years in this industry and has proven its ability to adapt quickly and effectively to changing conditions. Here is why we are well positioned for continued growth and performance. Since spinning off our US tuna, pet food, baby food, and soup…

Thanks William, good morning everyone. I’ll take you through a full review of the FY09 results and just a brief recap of Q4 performance. As William indicated we are very pleased with the strong results that we delivered. Key highlights for the year include 5.5% organic sales growth, EPS of $2.90 which was at the high end of our range, operating free cash flow of $880 million including significant incremental pension funding, and ROIC up 160 basis points. All achieved in this tougher economic environment. To provide more depth let’s first take a look at our P&L scorecard, despite a significant headwind from currency translation, sales for the year were up about 1% largely driven by the 5.5% organic growth. Gross margin at 35.3% was down 120 basis points as commodity costs increased at a double-digit rate. Consumer marketing was down for the year primarily reflecting the impact of currency. Reported operating income was down almost 5% but was up 3% excluding the effects of foreign exchange translations and up almost 6% when also adjusting for the major transaction cross rate changes in the UK. And finally EPS was up double-digits as we offset the majority of foreign exchange losses through translation currency hedges. To understand the magnitude of the currency impact on FY09 we’ve laid out constant currency results versus the reported [indicies] you just saw on the prior chart. Note that we have adjusted here for both currency translation and UK transaction impacts. This analysis shows that we posted very strong results on this constant currency basis. Sales for the year were up about 7.5%, gross margin while still down was 50 basis points better then the reported numbers. Marketing was down only about 3% as we held back some spending in the turbulent months of February and…

Welcome back everyone, I’m excited to share the results for North America and talk a little bit about how we’re going to keep winning into the future. For perspective and background is under $5 billion in sales and about half the company. For my portion I would wish that you have two takeaways from my presentation, that NACP will continue to deliver very strong performance for the corporate and that we will have another record year on virtually all financial measures. We’re off to a very fast start and we expect Q1 to be very strong. Second, the capabilities we’ve added and the changes that we’ve made in our US food service business are paying off and we expect profits to grow in fiscal year 2010. We’re making good progress in this unit. Let me start with consumer products, this is a large and very focused portfolio. Five brands make up 70% of the business and we’ve been growing along at about a 10% clip. Over the last seven years we’ve had a consistent approach in how we run the business. First we upgraded most of the top 100 leaders, we’ve refocused them on innovation, customer partnerships, and importantly, research. Today we are a smarter, more capable organization. Second we’ve been consistent in how we run the business, the beliefs that we run the business with. We believe in organic growth, selling products off the shelf at full price without a discount, every line of the P&L must improve every year, and importantly we innovate to enroll consumers and customers in our brands and businesses and also to throw off our competition. Finally we have an integrated structure where people are empowered to lead and to make decisions. Bluntly I think we’ve nailed this component of the business. This is…

Thanks David and good morning again. Okay its time to get out your currency calculators, [inaudible]. Let me see if I can take you through this. In this segment of the review I’ll take you through the key elements of our plan for fiscal 2010 and we’ll try to be very clear about the primary building blocks. We’ll cover four main topics; currency dynamics, P&L drivers, the balance sheet, and finally put our plan into the context of the two year high performance plan that we launched at this time last year. The key messages to take away from our plan today are that we are driving for solid top and bottom line growth on a constant currency basis. We expect currency to be a sizable headwind for the year, both from a translation and transaction standpoint. We are very focused on productivity and generating cash in light of our tougher economic environment. We’re continuing to invest in the business and finally, we’re growing our dividend while driving the strength of the balance sheet. Let’s start with our review of currency, before looking forward I want to take a step back and establish the foundation upon which the FY10 P&L will be built. Going back to fiscal 2008 which was the baseline for our high performance plan, its important to understand the foreign versus domestic mix of our business. Overall foreign operations accounted for 61% of our total sales, 64% of operating income, 78% of pretax income, and 82% of net income and EPS. The growing foreign mix of profit below OI reflects the fact that the bulk of our debt resides in the US and therefore the related interest expense. Obviously the cost of our world headquarters in Pittsburg are based in the United States and lastly the corporate…

Thank you Art, well I think you can’t accuse us of not being transparent. I think as you look at the company its clear we have world class iconic brands, we’ve generated organic growth across most of our core businesses, we have a very strong international portfolio, we have an enviable emerging market portfolio and we’ve generated excellent cash flow results and strong returns to shareholders. The other thing I have to tell you is the Heinz employees have stood themselves proud during these three years. We’ve overcome a lot of adversity and I think delivered pretty darn good results relative to our peer companies. And with a dividend yield near 5%, what else can I say. This is a terrific management team as you’ve seen today, with a lot to say about this company. So with that I’ll turn it over to Q&A. Margaret will pick the questioners. It keeps me out of trouble. So if you have a bone to pick, pick it with Margaret. For Q&A we’re also bringing Mike Milone up, Mike runs the rest of the world business and he’s also responsible for all of our quality, safety and sustainability initiatives. Food safety is becoming a relatively big issue across the world and I thought if there were any questions on that, Mike would be the appropriate one to answer those. David Palmer – UBS: One thing I noticed from the Europe and then the US comments and the graphs that were shown and we’ve also heard this from say McDonald’s in their presentation about Europe, things have gotten a little worse since March in terms of the economic environment there showing up in certain consumer trends including private label as you underlined. In the US we saw that seems to be reversing. In other words in March into April particularly private label share gain seems to have slowed. I’m wondering how [for real] do we think the private label reversal is in the US in terms of there truly being a reversal of trend, and then also in Europe how long does one this, is this for real and how long and sustained could this be in terms of an issue.

I think your assessment is exactly right, it seemed like private label will almost exploded in the December, January, maybe February period. It shows up in the numbers across the entire grocery store. It seems to have waned a little bit since then. We can see it in the numbers. I think a lot of major manufacturers started putting some juice to the D&A line and also people started getting back on air with media and the key is going to be the same thing its been for multiple years, innovation, talking to consumers, and out-executing the guys with retailers. The one thing that I was going to put in my speech that I didn’t was how much manufacturers bring to the party with retailers that private label cannot and it really got too cumbersome so I didn’t go into it. But don’t underestimate the value that major manufacturers play to retailers in terms of store sets, ideas about how to work the entire aisle, there’s big time ideas that you guys may not see or be aware of that private label I’m unaware of ever in that game. Scott O’Hara : From a European perspective I think your observation is correct. We have seen a shift and an acceleration in private label in our fiscal fourth quarter. And I’ve said, my personal view is that I think Europe is about six months behind the US in terms of when we went into the recessionary period and I think ultimately when we’re going to come out of it. The encouraging thing is that while we did see this shift our businesses continued to hold up pretty well and in fact, if you look at the one slide I showed sequentially by quarter our volume while still down year on year had improved from both Q2 and Q3. So I think we’re about six months behind the US. I think its starting to improve a little bit but we’ve got a little ways to go yet.

I think one of the things to note about our business and you saw it today, unlike others with the exception of Smart Ones we have maintained our shares across most of our categories globally. So our business is relatively resilient and the one thing I will tell you that has surprised even me, and I’ve been around a long time, the strength of Heinz ketchup has been extraordinary. What it says is consumers simply are not going to give up for a price differential Heinz ketchup on the table. At 9% organic growth last year and continuing positive growth into this year, the strength of that brand is truly extraordinary which is one of the reasons we are throwing all the incremental support behind the US business. Terry Bivens – JPMorgan: My question goes to the retail part of North America, William back at Cagney you talked about there would be a time where you had to respond and from what I can see in the numbers the promotional intensity in frozen has remained every bit as high. I think today’s Neilson numbers indicated there’s some slippage on the potatoes side, frozen potatoes as far as private label, so I guess the question is how long can you afford to wait and does the fact, [Nelson] pointed at D&A as being one thing he was very upset with back in the day. Does that hamstring you at all to being able to respond. Is that a factor.

No, we’re going to do what’s right for the business. As I said in my comments, we expect D&A to be up this year marginally, 30 to 40 basis points. It was up in 2009 by a comparable amount. Its just we’re going to be very judicious with it. The one thing you have to understand and I thought David said it very well in his comments we have had an enormous amount of discussion on Smart Ones. The management team responsible for that business feels very strongly that to engage in the short-term profitless prosperity would be a tragic waste of the continued long-term organic growth of that business through innovation, new products and through marketing. So that’s the focus. Now David also said it and I’ll say it stronger, if this nonsense continues to the point where it is really starting to effect our ability to execute in other areas, we’ll respond. The tragedy of that is its not good for the category and its not good for any of the manufacturers. I will tell you today that if I said to David start spending D&A tomorrow, he could get the Smart Ones share back in about six weeks and we would lose a fair amount on profits and we would lose the momentum we have in creating the 24/7. The reality is, if you cut through it, the reason our two competitors are responding with D&A, they don’t have anything else to do. They have no new product, they have no news and so as a consequence what are they doing, they’re taking price down. I will tell you showing the chart the most interesting thing, despite significant reduction in price, you’ve seen no improvement in the categories which goes back to the point you’ve got to…

The only thing I would add also on the [potato] spending side is that with a little bit of extra spending in FY10 our processes and systems are much more robust then they were years ago so we have a much better handle on what we’re getting for the spending. So from that angle as we increase the spending slightly we know what we’re getting and why we’re doing it and so I think, as the management team and the Board have been very supportive of moving in that direction if we need to. Ed Erin – RBC: William you talked at Cagney about the balance of power may be [toasting] a little bit more in favor of retailers and it seems like that could be fixed through some combination of M&A or tertiary brands going away, but it doesn’t seem like we’ve seen a whole lot of examples of that so far. What’s the catalyst for that happening going forward do you think.

Well I think you are seeing it. I think if you looked across Europe there’s a major account in Spain, Mercadona eliminated basically 1,100 A list items to replace it with either better A list items or private label. We’re seeing a number of that activity across Europe. Wal-Mart is getting ready to go through project impact which is certainly going to have an impact on the secondary and tertiary brands. There is no doubt that if the pressure from the economy continues these tertiary brands are going to go. Now we have peers that will stand up here and tell you that their tertiary brands are safe and they will also have to tell you that their D&A spending has increased considerably. But what’s going to happen and you see the best example in Europe, what Europe has done and which is going to be interesting to watch, Europe is replacing the tertiary brands with budget private label which is a benefit to us by the way because budget private label does not compare on a quality, packaging, just overall appearance standpoint and so the more they shift their own consumers down from their premium private label to budget private label, they’re doing us a favor. But I think over the next 12 months, and I’ll let these guys comment, you’re going to see some fairly significant axing of SKUs across the retail trade and I think its going to effect the secondary and tertiary brands. Scott O’Hara : I think William is absolutely right, clearly we’ve seen the shift that I showed you within the private label segment from premium down to budget. Over time I think that that’s going to be a challenge for our retail partners because clearly they’re not going to make the same kind…

You’ve been dissed, do you want me to answer that. Scott O’Hara : No I’ll take it and then you can build on it if you like, I think your observation is right. That said we do have a fair amount of innovation in the plans. Its less then we had in fiscal 2009 but that was by choice. As we showed you, clearly the currency headwinds are coming through the European P&L on a cross rate basis so we are very focused on trying to drive cost. We also are very focused as you said on the fundamentals, on the blocking and tackling because in this environment that’s critically important. That said, I tried to give you guys an example of some of the things we’re doing. We’re trying to leverage scale in Europe this year. Take the ideas that have worked and spread them across the rest of the markets that haven’t launched. So things like grown not made across all the European markets, some of the packaging innovation ideas across other packaging formats, so that we can leverage a lot of the ideas that we launched in fiscal 2009 and get more benefit from that and really focus on the core business.

I have a different take totally, I think its one of the great strengths of this company that we have on the ground management in these markets that reflects the needs of the existing marketplace as opposed to some dictate from Pittsburg that says you need to do this and I think as a consequence of that I have to believe our continental European business was the only business in the food industry last year to grow volume. We grew volume fairly strongly in continental Europe last year predominantly on the strength of our businesses in Belgium and The Netherlands. And I think it really reflects the ability of this team to move very quickly, they don’t have to depend on Pittsburg for decisions and so if innovation is appropriate as it is in the US and as it is in the emerging markets or if value is more of an issue as it is in Europe right now and probably New Zealand, less so in Australia, that’s where I think the strength of this company comes and we’ve reacted very quickly and I think you see that in our results for the last three years. And I think as a comment on that, if Mike were to talk about his businesses, he’s got a fair amount of innovation. We’ve taken baby food and launched it across Mexico as well as the Caribbean. We’ve launched ketchup into the Mexican market very successfully. We’re going to continue to press those. We’re looking at formula in a number of our markets around the globe. So I think we’ve addressed the consumer. I think ultimately everything begins with the strength and capabilities of the marketplace, the team we have in the marketplace and the needs of that marketplace. I was commenting at the…

No, I think in this environment clearly productivity becomes more important. The focus of the last couple of years has been more on the top line growth and we’ve seen some very strong volume and price growth numbers that we’ve posted, so in this kind of global environment we have shifted more to a focus on productivity. We have a lot of as you say, we’ve got a lot of projects in the pipeline. I’m particularly excited about the indirect procurement stuff that we’re doing which we’ve made progress on already but with the acceleration of the SAP program to actually solidify and force the discipline on the indirect procurement side. We think that will be a big help. Now the reality is that doesn’t, those systems don’t get implemented until late in the year so they will be more as I tried to allude to in my presentation or prepared remarks there’ll be more productivity coming from that down the road. So we’ll get some of it in FY10 and then more beyond. But do we think we’re being conservative? Hopefully a little but that’s the target, its $250 and we’ll see how we go and we’ll keep you posted. Chris Growe – Stifel Nicolaus: I wanted to ask you in relation to pricing you’ve got some tough cost inflation this year especially in relation to other food companies, so I’m just curious have you implemented price increases already, and I’m thinking ketchup for example where tomato costs are up or tin plate is, how are those conversations gone with the retailer and if I look at your gross margin estimates you have, productivity plus pricing, could we see more pricing to offset the cost of inflation there from where the productivity comes to the bottom line.

Let me talk about pricing, because one of the things that’s clearly effecting our commodity cost next year is transaction cross rates. Its about $100 million. So if you back that out our commodity inflation is more in line with our peers. Much of our pricing is simply carryover pricing. Having said that, if you notice Scott did make a reference to the fact that there will be some incremental pricing as necessary across some of our businesses. In New Zealand we moved very aggressively in April to take pricing to address part of that transaction cross rate impact we’re going to face in New Zealand and somewhat in Australia. We’ve moved in a number of other markets. Having said that, you have other companies standing up here talking about dealing a lot of money back. What we’re trying to do is balance the difference between what our increased D&A and the need to take incremental pricing and turn around and just deal it back. And I think we feel very good about our organic sales opportunities in fiscal 2010. If commodities continue to increase, if transaction cross rates are exacerbated, if other things change, then we’ll obviously mirror those and monitor those very carefully. I think the other thing I want to comment on, if the UK cross rate issue remains and clearly what’s going to happen over time is you’ll see more pricing in the industry. But right now rather then react at a point in time and take pricing that could fundamentally injure the business long-term we’re sort of monitoring how this goes. The longer that stays in place, the more likely it is the market in total moves because our peer companies are effected by the same thing. So what you’ve seen and what Art tried to show you is a real balance between pricing, some increased D&A, increased marketing, commodity costs and what we felt would be prudent in terms of offering up guidance for the new year. Again if costs get worse or they stay where they are, we don’t start seeing some improvement in some of these areas then we’ll look for opportunities to take more price. But I think we have a pretty good balance right now.

In your presentation you made a mention that your expectations are that consumer frugality will stay fashionable and I think that sets you apart from your peer group. I think your peers generally expect a return to normal, whatever normal was. So if you could just talk a little bit about what’s driving those beliefs and have you done some studies that lead you to believe that and also how that lines up in terms of how you believe your retail customers look at the consumer.

Those are just beliefs. But virtually every single data source that I have and read and look at and personally have discussions with customers and consumers supports that point of view. Those were heady days a year ago, 18 months ago, and until we see that kind of personal wealth being created because of stock portfolios and housing and other mechanisms, I don’t think its going to happen. Even if it does, I’ll be gleeful. So I’m preparing for the day that it doesn’t happen and that’s why we’ve become so aggressive on productivity. We shifted a substantial portion of our R&D resources for a nine month period, very defined, to go in and get some cost out of our packaging and a whole host of things, and its hitting the bottom line beautifully and its one of the reasons that the business is going to be so strong next year and we’re able to increase our marketing by 70%. But I think its wise to think about the worst case scenario and then if it isn’t that way it will be terrific.

There’s a recent Mackenzie report published that basically said that 50% of consumers interviewed said they will maintain their current purchasing patterns and 50% will return to normal. So how you parse that is going to depend on what you’re expecting for the business. We’re expecting the worst and preparing for the best. In food service the Mackenzie report said about a third of consumers will return to their normal eating out habits once the economy returns but about a third won’t so a lot of this is based on a Mackenzie report we’ve read and our own research which indicates that right now at least in the world we live in, consumers are starting to see this sort of as a challenge. They’re seeing this as a game and I know we stand apart from our peers. We stand apart from our peers virtually every time I open my mouth and I think in context of that I look at three years that these guys have posted a pretty darn good results and I’ll listen to these guys before I listen to my peers. Andrew Lazar – Barclays Capital: I wanted—

Thank you for letting me in today, by the way it was very helpful. Andrew Lazar – Barclays Capital: Not a problem, the nightmare comment was a little bit troubling but—

What Andrew basically said was I dreamed that I was an analyst when a guy asked if I was and analyst. And Andrew said only in his dreams and I said no, only in my nightmares. Andrew Lazar – Barclays Capital: Going back to the 30, 40 basis point increase in D&A for the year, just two questions on that, one is that relatively similar if we were to compare it across North America and Europe and then the second one is that seems a lot less severe then maybe a lot of folks in the investor community might have feared coming into this year given the need to drive volume and given that we’ll have some in general input cost favorability [although] not specifically at Heinz. So I wanted to get a sense of whether you think putting that increase in the context of your peers, do you think that puts you at a maybe a disadvantage relative to your peers or is your sense that the increase in D&A across the industry might be more manageable then investors’ fears.

I really don’t know. I think some of our peers are going to have to spend a lot more D&A to hang on to their distribution and their shelf space. We can’t react to that because ours isn’t hanging onto our shelf space, ours is determining what the right price point is for consumers relative to the other value equation that these guys have talked about. I think that 30 to 40 basis points is going to vary not only by business but by product. In some products you’ll see a fairly significant increase in D&A and others you won’t see any increase in D&A. When you look at businesses like we have in the UK or even in the US or Canada where we have 75 or 80% market shares, spending incremental D&A to hold onto one or two share points is not a very good use of money. In other categories like Smart Ones where we’re going to have more of a competitive set where we are planning to spend a little bit more D&A and in potatoes and maybe a few other areas, its just going to depend on the business. I have no idea what my peers are going to do, not a clue. I do know that we’ve been around this horn as you know and we’ve taken a lot of D&A spending out of this company, about 500 basis points in total over the last six or seven years. I would guess by the this, the economy turns, we’ll have probably increased that over 2009, 2010 and maybe 2011 by maybe back to 100, 125 basis points. But it will be very selective and very dependant on the business. And in some of our business, certainly in the emerging markets we don’t spend anywhere…

We pulled market in February, March and given the collapse of the consumer that we saw in January, we got very concerned about chasing water uphill and we pulled a lot of marketing. Now some of it went back into D&A which was why our D&A in 2009 was up a little bit and some of it we just held on to and was spent in other areas. But I think overall for the year on a constant currency basis marketing was essentially flat last year down 3%. That’s very unlike a number of our peers where marketing spending on a constant currency basis would have been down pretty significantly. Its going to be back up this year. We’ve now, I think gotten confident that it will have an impact positively going forward but you have to look at January. Because we walked into Cagney, I remind all of you to go back to those Cagney presentations in general that was one of the most depressed groups of people I have ever been around. And I think our view was the consumer is hiding, is never going to come back. You were hearing stories about retail deload, you were hearing stories about consumer deloading. One of the things we observed the consumers weren’t buying multiples. So rather then the continuing to spend the money we did we just drew the conclusion as a group we don’t know what we’re chasing here so we pulled it. Now some of it went into other areas. It went into promotion or value sized packaging and so forth, but there’s no doubt advertising came down aggressively in February, March. Now we started back up in April as David showed you on vinegar and a few other businesses, and in May its really been ratcheted…

If you look in the back of Art’s first presentation we have additional slides and you have all the fourth quarter scorecards to your marketing numbers there.

Just to put in context with respect to some of the changes you’ve announced today in terms of compensation and so forth, if you take out, from my perspective I mean if you take out currency for the most part obviously food service and some of the other issues you mentioned, your performance has been pretty good. So I’m wondering number one, what sort of message does it send, what are you trying to accomplish in terms of actually making some of the reductions that you’re making in terms of compensation at certain levels in the company. And then heading into the next fiscal year can you talk about the alignment of compensation, what will your incentive comp look like, what are you going to get paid on this coming year and the alignment between that and shareholders and then for Art, quickly just in terms of uses of cash with the stock price where it is, you didn’t talk about share repurchase and I just wonder is that something you’ll be taking a look at here as well.

Let me talk about the compensation, this was a, we took this to the Board before anybody asks if Nelson had a hand in this, we took this to the Board and this was something I felt strongly about and I will tell you we’ve taken it to all or employees around the globe within the last four or five days and I have to tell you I have been extraordinary proud of the way our people have reacted. Their view is that this is going to be a tough year. The economies around the globe are not performing well. That we’re not announcing mass changes in the way we staff the company and so forth and I think in that context its been very well received by the employees and the message that we’re trying to is, look we recognize things have changed. We recognize it’s a different world and we’re going to take some steps. This will not effect the 2009 compensation that’s based on last year which was an extraordinary year and I think you’ll see it in the compensation numbers. But we felt as a management team and as a group of employees that it was appropriate to reflect the realities in the marketplace we exist and to take a very difficult step. And believe me this was not a very pleasant thing to do. Our employees have reacted with a great deal of grace and class. We’ve had virtually no pushback. They understand it. They’re pleased that we were very clear with them on it. The bonus opportunity itself has been reduced by about 20% and that’s very simple. We took the target we promised the street last year of $3.07 even though we did adjust it for currency. We looked at our current range…

I think what we’re looking at in this environment, we want to be very prudent with our cash. We want to maintain our BBB rating that we have currently that is optimized for costs of capital over many years. So we feel good about that and want to maintain it. So as we think about it we have prioritized dividends. We’ve prioritized truing up our pension funding and we also think in this environment that there may be some darn good bargains out there on relatively small acquisitions. So we want to maintain some dry powder for that. No doubt that we view over the long-term the stock price as being a bargain, but given where we are in the rating and some of the other priorities, we felt that was appropriate.

We talk about this every day because its very tempting.

Just a quick one, you highlighted in your earlier slides $127 million of total mark-to-market gains for fiscal 2009, how much of that hedge, if that were not mark-to-market accounting that hedge accounting, in other words how much of that is borrowing from future years in terms of the benefit for 2009 kind of coming out of fiscal 2010. If it were hedge accounting in other words would that number—

Really none. The reality is that we only put in place the hedge to the end of April so it was all contained within the fiscal year.

If we could we’d have hedged 10 years out. But the accountants won’t let us do that.

In your private label comments you had interesting discussions between the United States and then what was happening in Europe, in the United States you had actually shown a private label graph that private label had crested and it was actually coming down and then Scott I believe in your comments you mentioned that private label started to see a ramp up in the fourth quarter. Now we all know that private label is much more well developed in Europe then it is in the United States so there’s something counterintuitive to what’s happening here at least to me. Can you explain why you think that we’ve seen the differences as such in these geographies, the acceleration in Europe and I don’t know if its and actual slowdown, but its crested according to that chart in the United States. Scott O’Hara : I think its tied to a couple of things. One as I mentioned, I think the recession if you will was delayed by about six months in Europe relative to the US so I think there’s a phasing if you will that’s impacting it and the second thing is, particularly, well actually in all the markets but with more of a focus in the UK the retailers have really focused on private label is an area that they’re trying to drive their business. And so for example is now putting out there as a banner that they’re Britain’s biggest discounter. Many of the retailers have launched ranges of budget private label that didn’t exist a year ago and it took them time to get those into the marketplace. So I think we’re seeing a little bit of momentum related to that. At the same time because the penetration level as you mentioned was much higher to begin with, you’re not seeing the same kind of growth rate that you would see in the US and I don’t expect that we will. Obviously that varies by category. In the more commodity related categories you’re seeing a little bit more acceleration there. In most of our categories while we’re seeing some acceleration its not any where to the same degree.

Only comment on the US is I think it goes back to William’s comments around the Cagney time period. I think the consumer absolutely almost imploded in the December, January, February, period which is the peak that you’re talking about. They weren’t going to restaurants. They were depleting their panty. And I know that we saw it in our volumes. It literally fell off a cliff the last three weeks of December and most of January. It was a very difficult period and then its been ramping back. So I think that’s the aberration. The long-term trend though is very clear that private label is a big player and we’re going to have to deal with it as an organization and as an industry.

That will conclude our webcast and for those of you in the room, I just want to thank you for attending today.