4,
B.A.T INDUSTRIES P.Lr- - MWNESOTA DEPOWOFly Copy PRODUCED PURSUANT To VILD. OF
CONSENT JUDGMENT DATED 5/"S INITATE OF ANNIVESOTA, Er AL V. PNLP AlORRIL ET A" CASE NO. CI-944MS
Brown & WiRiamson Tobacco
Traffing Profit
1981 - 1991
900.
8001.
700
600
0
0
C
0 500"
400
300
2001
Trading Profit
(Millions)
1281
259.8
1982
365.4
1983
405.1
1984
427.8
1985
443.7
1986
536.5
1987
613.4
1988
650.8
1989
751.7
1990
755.6
1991*
1 -i-
852.7
0
800
700
600
0
10
C
5W
400
300
200
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991*
CO
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CD
Ln
BAT INDUSTRIES P.LC. - MWMJSOTA DEpOWTORy Copy pROWCED PURSUANT To VII.D. OF
CONSENT JuDamENT DATEo SON IN.STATEOFA*NRESOTA6 ETAL V. PMILPAIORRAL ETA CASENO.Cj.94.M5
SALES REVE
NUE
INTERNATIONAL
DOMESTIC
OPERATIONS
AV_
I=
DOLLARS IN
MILLIONS
1981
1,677
204
110
1,991
1982
1,778
213
158
2,147
1983
1,884
182
96
2,162
1984
1.983
180
103
2,266
198S
2,0329
136
81
2,306
1986
2,103
151
98
2,351
1987
2,304
363
80
2,547
1988
2,256
478
87
2,821
1989
2,3S3
573
114
3,090
1990
2,250
659
144
3,054
1991*
2,714
784
109
3,607
4000
3WO
3200
2600
2400
2000
1000
Brown & Williamson Tobacco
Sales Revenue
1981-1991
4000
ELT
-
tmal IM22 IASI IS" 122A too& ISA7 low is" Isma lool.
2AM
cc
3200
2000
2400
2000
1600
co
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B.A.T ImDurmms P.LC. - MWOESOTA, DP0Sff0Fjy COPY - Pm=CE0 PuFtsuAmT To I VILD. oF
CONSENT JUDGMENT DATED 5098 IN STATE OF MMmsoTA, Er AL V. pHLip U0gjW Er CASE 140. C1.944W65
SIG
NIFICANT ITEMS
As PERCENT OF
SALES
DOMESTIC
D014ESTIC
VARIABLE
MARGIN
WIT
CONTRIBUTION
TRADING
PROFIT
1981
46.5
22.0
13.0
1982
$1.0
26.6
17.0
1983
46.6
26.0
18.8
1984
60.7
31.0
19.8
1985
52.4
30.5
19.2
1996
52.1
33.4
22.8
1987
55.3
35.2
24.1
1988
58.8
34.4
23.1
1989
61.2
34.4
24.4
1990
61.8
35.3
24.7
1991*
61.2
34.1
26.6
'70
60
so
40
30
20
10
Brown & Williamson Tobacco
Significant Itemas an a Percent of Sales
DOME11ITIC VARIMLZ MARGIN
DOMMIc PmFff cojammanot+ - -
loll
"oo,
No P"0FT7
70
60
80
40
30
20
10
1081 1942 1063 1094 1985 1086 1967 10" 1980 1000 1991-
-Sudgot
2
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B.A.T INDUSTRIES P.1-C. - MINNESOTA DEIVSTTORy Copy - PRIDWCED PURSUANT To I VII.D. OF
CONSENT JUDGMENT DATED 5098 IN STATE 0FMWMS0yA, ErAL V. PHLP UORRIP, ETA CASENO.Cl-944M
BROWN A WILLIAMSON TOBACC
OPERATING CASH FLOW
(MILLIONS)
CHANGE 1
0 NET ASSETS
TRADING
CAPITAL
OTHER
OPERATING
PROFIT
ADDITIONS
USE (SOURCE)
CASH FLOW
1981
259.0
102.8
(20.7)
177.7
1982
365.4
123.8
(
144.7)
386.3
1983
40S.1
45.2
(
120.9)
480.8
1984
427.8
43.6
(
111.7)
495.9
1985
443.7
51.6
(83.7)
475.8
1986
536.5
S2.1
69.4
415.0
1987
613.4
SM
19.0
S39.7
1988
650.8
53.7
(103.8)
700.9
1989
751.7
62.4
2.S
686.8
1990
755.6
75.3
29.0
709.3
1991*
S52.7
104.7
(153.3)
901.3
Note:
Converting to "inst
allment saloso is estimated
to have negatively
impacted Operating
Cash Flow in
1986 - $90 and
1997 - $40. The
impact on 1988 and
1989 is not
considered to be material and
"installment sales"
were discontinued in 1989.
Trading Irofit less chan
ges in Not A
ssets equals Ope
rating Cash Flow,
Brown & WIMamson Tobacco
OperaUng Cash Flow
i0c
9c
&C
so
40
30
20
10
DOO
@O
20
)0
10
)0
)0
)0
)0
C=)
C=)
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13.A.T INDUSTRIES P.LC. - MWQWA DEpOSMORy Copy PRODUCED PURWMT To I VIM OF
COMENT JUDGMENr 0ATED 3/8M IN SrATE OF A*MWSOT4 Er-AL V. PWF AWRM ET AL. CASE No. Cl-944US
3a
BROWN & WILLIAMSON TOBACCO
RETURN ON ENDING NET ASSETS
(MILLIONS)
(ROMAI
TRADING
YEAR END
RONA
PROFIT
NET ASSETS
PERCENTAGE
1281
259.6
945.9
27.3
1982
365.4
925.0
39.5
1983
405.1
849.3
47.7
1964
427.8
781.2
S4.8
1985
443.7
749.1
59.2
1986
536.5
$70.6
61.6
1987
613.4
944.3
65.0
1988
650.8
894.1
72.8
1989
751.7
959.4
78.4
1990
755.6
1,00S.7
7S.1
1991*
852.7
1,033.1
82.5
Tradina Profit divided by Ending Net AssjU equals RONA.
NET ASSET
2.1
2.3
2.5
2.9
3.1
2.7
2.7
3.2
3.2
3.1
3.5
90
so
70
RON&
:0
0
40
30
20
1901 1982 It" 1084 1006 1908 1087 Igoe 10" 1900 169,1-
3
00
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B.A.T INDusTmEs P.LC. - MINNESOTA DEMFTORY COPY - pRODUCED pURSUANT To W1.0. OF
CONSENT JUDGMENT DATEID 5/8/96 IN STATE OF A*NWSOrA6 Er AL V. PmtP AkRRA Er CASE No. CI-944=5
Brow, & W1111axneon Tobacco
Return on Ending Not AAmets
I-
I\)
C)
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BAT INDUSTRIES P.LC. - MINNESOTA Dox)WORY Copy - PRODum PuRwAmr To I VII.D. oF
CoNsEwJuDawNT DATED 5/8M IN SrATE gFUNNEsom, ErAL V. PHXVUORNM ETA CASE HO. Cl-94-MS
BROWN & WILLIAMSON DOMESTIC
SALES REVENUE AND UNITS
REVENUE UNITS
(MILLIONS) (BILLIONS)
1981
1,677.3
87.3
1982
1,777.7
63.2
1983
1,883.6
68.S
1984
11982.8
68.0
1985
2,088.6
70.7
1986
2,102.6
68.0
1987
2,104.3
62.7
1988
21256.1
61.1
1989
2,392.7
S9.5
1990
2,250.1
53.7
1991*
2,713.7
56.8
Drovm 4k WLUL&moou - Domostio
Below Imovenues &nd Unito
19151 - 199i
*Mae (war)
2400
2=
I GOD
1200
4
un%b "k" As" cuns)
101o
so
so
so
co
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B.A.T INDUsTRiEs P.LC. - MMESOTA DOVSTORY Copy - PRoDuCED PURSUANT To I VILD. OF
Co"SENT JUDGMENT DATED51MIN STATE OFUINNESOM, ETAL V. PWFAkRRff, ETA CASEN0.C14M4U5
l"l 1"2 1993 In" I*" i"s lea? I*" IpM logo 1691a
B&W DOMESTIC SALES AS PERCENT OF TOTAL INDUSTRY SALES
ROLL- CHEWING
CIGARETTES PIPE TOBACCO YOUR-OWN TOBACCO nff
1981 13.9 10.8 74.4 10.4 7.2
1982 13.4 (a) 10.3 68.3 10.7 7.1
1983 11.5 (a) 9.7 65.3 11.1 7.4
1984 11.3 9.7 67.3 11.9 7.2
1985 11.9 8.9 62.5 11.2 7.3
1986 11.7 8.6 61.7 12.0 7.2
1987 11.0 8.0 66.7 12.0 7.4
1988 11.0 8.4 66.7 12.8 7.5
1989 11.4 7.8 73.5 13.5 7.5
Im990* 10.3 9.8 72.4 13.7 7.5
1991** 11.2 9.4 72.4 13.8 7.S
(a) Industry sales for 1982 were inflated as th:spending January 1, 1983 excise
tax increase stimulated the shifting of W from 1983 into 1982. It is
estimated that S&W sales shifted into 1982 were at a rate greater than its
existing share of market. This has the effect of reducing S&W's 1983
percentage.
Brown & WUU&=mozx - Dozn*oUc
Sales as a Percent of Total Industry
1961 - 1991
100
Is 10
if
........................................................
Pon Your own
C"W"\
chowl"
..........
............................................................................
S/ Plow
1991 IU2 11983 1094 IOU 1906 1087 1906 1080 1990-1091-
-1/91 twL
100
M)
4=1
00
(Jr.
%C)
11-4
B.A.T INDUMIES, P.LC. - MINNESOTA DEPOSITORy Copy - PRODUCED PURSUANT To VILD. OF
CONSENT JUDOWNT DATED 5/8198 INSTATE OF AOMMSOTA, ETAL V- PMXV AkRMS, ETA CAsEft.CI-944=5
SALES OF MAJOR DOMESTIC CIGARETTE BRANDS
Billions
RALEIGH
CAPRI
GPC/FALC
RICHLA
1981
10.6
1982
10.0
1983
8.0
.3
1984
7.4
2.2
.5
1985
6.3
7.9
2.7
1986
5.3
10.5
3.4
1287
4.7
1.0
9.8
3.3
is
4.0
2.7
8.0
4.6
J*89
3.4
3.0
6.1
S.1
1990
5.3(3)
2.5
6.6
3.4
1991*
8.0
3.3
5.9
4.1
(1) VICEROY converted to Value-for-Money 1/1189
(2) Includes BELAIR Low Price beginning 9/89
(3) Includes RALEIGH Extra beginning 4/90
WAM
ram" ax
Mm 11M
am=
4
WAMMAM
U
%%W Som
t9st
5 -
BELAT B
ARCLAY
VICEROY
6.8
7.6
52.8
9.4
6.3
7.3
51.1
8.6
4.9
5.8
42.7
6.9
4.6
4.6
42.3
6.4
4.0
3.7
40.5
5.6
3.4
3.1
37.2
4.9
3.0
2.2
34.3
4.4
2.7
1.8
33.6
3.6
2.5(2)
1.5
31.2
6.7 (1)
2.8
1.2
25.7
6.2
2.4
1.0
24.5
7.6
1"10
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13.ALT lwDumms P.Lc. - MMEWA DEpowroRy Copy - Pmwmo PURUMT To VII.D. oF
CoNsEw Jummwr DATED 50198 im STATE oF UNNEsom Er AL v. Pmxp Uaggs, Er CASE NO. C14W4W
BROWN & WILUA1110" MEW IONAL
INTERNATIONAL AS PERCENT OF TOTAL BOMESTIC
SALES
VALUE W
VARIABLE
MARGIN
PROFIT
CONTRIBUTTO
1981
23.3
11.2
9.7
1982
12.7
10.3
8.4
1983
11.7
9.3
5.9
2984
11.1
9.1
5.7
1985
8.2
6.3
5.1
1986
8.8
7.1
4.4
1987
18.4
13.6
9.8
1988
21.2
15.8
11.9
1989
22.9
17.0
16.3
1990
26.5
19.5
19.2
1991*
26.7
19.3
19.5
(A) Percentage based on Oomestic Sales Value less Excise Tax.
28
23
22
110, 100e
13
10
7
4
1001 1982 1093 1094 19" 1"9 1"7 1*88 19" 1000 1991-
co
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B.A.T INDumEs P.Lr- - MINNESOTA DEPOSITm Copy - Pmmxw PuFtSUAW To I VILD. OF
CONSENT JUDGMENT DATED 5/8W IN STATE OF Allmffsom ET At- v. PHvP UpRRM Er CASE NO. CI-944MS
Brows& Jk Wunammozz - bmt"nsuo3mal
81guMoomt Itemm as a Peroamt of ToW
Do=eoUo and 1satarsmUmmal
BROWN I WILLIAMSON INTERNATIONAL
SIGNIFICANT ITEMS AS A PERC
MEMO UNITS MILLIONS)
EXPORTS, CONTRACTS
IMPORTS LICENSEE
1981
16.7
15.1
1982
15.5
12.6
1983
12.0
15.2
1984
11.0
17.5
128S
8.8
19.9
1986
9.7
18.9
1987
23.7
19.6
1988
29.6
21.5
1989
33.5
25.6
1990
39.0
31.8
1991*
44.3
32.0
so
86
so
45
40
35
30
as
20
Is
PERC
ENTAGE
INTERNATIONAL
PRDFIT
VARIABLE
MARGIN
CONTRIBUTION
REPORTING
44.3
19.6
47.9
19.4
49.3
20.6
51.6
16.7
56.2
20.6
54.1
2S.0
55.5
21.5
52.0
21.9
52.3
27.9
52.2
26.6
50.8
28.6
Drown & W1111amson - Internatio-11
alcumcant Items " a lpercent of Int'l Isales
@VARM@LKMAM@IN@@@
LABLE MARGIN
POROFFT CONTRIDMON Ile .000,
'loll
1991 1062 1983 1984 1985 1986 1997 1098 1989 109019910
6
so
as
so
45
40
35
30
23
20
Is
C:)
OD
c:)
c:)
c7%
c:)
B.A.T ftusmn P.LQ - MINNESOTA DoKwrm Copy - PRMCED PuRSuAxT To VILD. OF
CONSENT JUDOWNT DATED W98 IN SrATE OF WNWSOTA. ET AL. V. PHXV UORRIS, ET A" CASE No. C144-UN
C@
CC)
CD
C)
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C)
BAT INDUSMIES RLC@ - MWMWA DMvsffoRv CoPY - PWWCED PURWANr To I VILD. OF
CoNsEmr JuoomENr DATED SWN in SrATE oF AfIMWSOTA, ET Ai. v. PHXV MWOM Er CAsE No. CI-9441565