December 2017

Publication of our UK Tax Strategy

As part of the Intersnack Group, KP Snacks is fully committed to adhere to all applicable tax laws, regulations and practices. The principle of compliance has led to the establishment of all our internal standards and procedures.

Our commitment to tax compliance The Intersnack Group is fully committed to adhere to all applicable tax laws, regulations and practices. The principle of compliance has led to the establishment of all our internal standards and procedures. Embedded in our work is our commitment to be a responsible company by paying the right amount of tax, in the right place, at the right time. Our material tax footprint worldwide is aligned with where we deploy our assets, employ our people and earn our income. We contribute to worldwide economic development through tax revenues created all over the world and we aim to accelerate growth and social development throughout our value chain. Compliance also involves the disclosure of all relevant facts and circumstances towards the respective tax authorities as well as claiming reliefs and incentives where applicable. Responsible attitude towards tax planning As the Intersnack Group is a business-driven multinational enterprise (MNE), our tax policy and guidelines are derived from our business objectives. Legal tax possibilities and their consequences are taken into consideration in a responsible way as part of the alternative business strategies and decisions. For example, we attempt to reduce the risk of double taxation (the same income being taxed twice in two different jurisdictions). We will also continue to utilise government tax incentive schemes, e.g. research and development expenditure credits. This ensures that the complete picture of diverse business strategies and decisions are shown and that within the legal framework the optimised alternative is chosen. We always take the potential impact on our reputation and other business goals into consideration and will neither set up tax structures which have no commercial or economic substance or make arrangements which are contrived or artificial. Risk management By following a conservative tax profile and having implemented rigid levels of acceptable tax risk, we aim to minimise risks of dispute with the respective tax authorities. However, due to the scale and volume of our business, risks may inevitably arise over the course of time due to the interpretation of complex tax law and the nature of our compliance arrangement with the respective tax authorities. When interacting with other external businesses, we work with these as equal partners and provide and demand clear, timely, relevant and business-focused advice across all aspects of tax arising from there. It is inordinately important for us to actively identify, evaluate, monitor, assess and manage tax related risks to ensure that these remain in line with our business objectives. Where there is significant uncertainty or complexity in relation to a risk, external advice may be sought, particularly if it results in international tax obligations of the Intersnack Group and/or the individual countries the legal entities act in.

Communication with tax authorities We communicate with tax authorities with honesty, integrity, respect, fairness and co-operative action (to ensure compliance with tax regulations). Wherever and whenever possible, we do so on a real-time basis to minimise tax risk. An open, two-way dialogue with tax authorities is very important to us and is required practice in all our business units. Naturally we will not take positions on tax matters that may risk our good standing with respective tax authorities, however we are prepared to challenge any ruling or decision of a tax authority with which we disagree. Nevertheless, our first approach shall always be to resolve any disputed matter through active and transparent discussion. Oversight of the Board The Group Tax Strategy is aligned with our Code of Conduct and is overseen and approved by the Board of the Intersnack Group and is applicable all UK entities.