AV PROJECT BATTALION Impact on the Operating Company, Unchanged roic of the Oper2ting Comp2ny: Accouritable for delivery of rtsulLs in the local market - profitability - market share - cusiomer service - product quality Charnzion a strong consumer-led culture t1roughout the organiscion Deveiop and execute an effective competitive strategy for the market Drive the successfW development ofthe strongest portfolio ofbrands to satis~, locai consumer needs - strong brands serving profiuble consumer segments - local product development to satisfy local Laste preferences Drive loc,31 product development to satisfy consumer tastes ,kch]eve excellence in trade markeuriz and disLribution to bad strong, profitable customer relationships Drive supply chain excellence both in-market and to supply other BAT operating companies Proa=velv identif;v new business opportunities Build strong relationships with local government and regulators Deveiop the best managers for BAT Continuously improve performance including deveiopment and adoption of best prac--ces wherever possible Cb2nges: GM may report to a different region For most operating companies, one less management layer between the GIM and the T.'v13 (suhject to confirmationj Courtrf provides critical bottorn-up input to and identifies investment opportunities for the global stnitegy development process Centre provides greater clarity ofbusiness strategy and expectations from each country to contribute to the global gameplan Gre?rer/more responsive support from region/global centre: - faster decision-making from the regioniWobal centre - proactive sharing ofbest practices and processes for all ffinctions - ciarim in priorities and fiver response firom product development - c;ear positions and support for Consumer and Regulatory A.-Tairs issues r1j - greater legal support CD - better training and development of st~ and global management of senior It:. c'_ueers Greater suppor, for international brands with single accountability at the 0obal cent-i-e c0 BAT Industries document for Province of British Columbia 3 November 1999