ET
BATCo. Previev 1992-1996
A C?C Meeting :a discuss che ?review of the MM. ?1ans for 1992-1996 was
held on 29th October 199L.
?resenc : Sir ?atrick Sheehy, Mr. B.?. Garraway, Xr. X.F. Broughton,
Mr. 3.0. BracnIev
Dr. 1. Salcer was in attendance.
1. 1991 : Incr--:duciag the ?review, @Lr. 3ramlev noted that the current
jw@esticzate for 199L trading profic was around ES million below budget.
This inciudedft@7-TU@P4 Drovisions !or fac:arv closures in, Pakistan
and Ungladesh- (0@@nj'Ecrs
mil;isa negative variances and Provisions for redundancies in
Auscralia, and variance --'a Malaysia.
Argentina : it also iaclu_@ed El-2 milLion provisions for Itk-ae
the Koner Salgado tax credits L= Argentina, some of which
r Aom6& be written back in r@,e final accounts for 1991. It was noted
chat the Xoner Salgado ne;13tiacions were scill proceeding.
'Ar. 3ramlev would report :a :he C-.-C on c,e l3cest sLcuation and
-tecommended aegoc_;3cing stance earl-r in November.
3. 1992 : 1: was noted that :ie trading prof--'t3 for 1992 shown in the
?review included '__'3 millian or pro::.,.s added co the individual
company rarecasc3 ov-BATCo. The C?C scressed chat the final budgets
should iaclude these as firm figures. 3ATCj. should also aim to find
X@;r:her imor-3vements -if @!@).5 million to bring the budget for 1-992 up
n --a level of zne forecast for :he 7e3r 'Included in the 1991-1995
@ian, indicating the longer-tar= implications of :he action required
to achieve :'iis level of 4-noravemenc.
Price increases : The Chairman emohasised the need ta giv
furrier
'@_UCLOL_
consideration to the potential for increasing pr,---es, a@Q@e at TV,
some volume ni,@@ -night need to be sacrificed in the
interests )z achieving hear levels of profitaibilit-,, which Could
then provide a better ba;e far longer--cerm expansion.
Market Structwe : It was noced that :he growth of transit trade
was an incr3asing proolem in several of BATCa.'s -most important
markets and :he development of appropriate strategies was a priority
concern within 3ATCo.
rhe Chairman acceoced that there was a trend for transit trade to
increase but suggested that rather than merely aiming co gain a higher
share of this trade, 3ATCa. should be actively involved with
Governmencs in discussing changes to excise regimes, including duties
:)n ;_=Dortad leaf, Aich world enable '.ocalLv established companies to
co-upere more strongly against duty-:rae imports.
The current clizace of ooinion mean: the Governments were more
iensi:ive to the law in whLch they dealt wich foreign investors and it
;hould he a parcicularlv favourable :are to 4ater into positive
negotiations, showing the benefits to the Covernmentas well as co the
o-@ less tax rig=es.
n
BAT Industries document for Province of British Columbia 23 April 1999

8 International Brands : The C?C supported the strategy to
concentrate on a li=iced range of International 3rands but suggested
thac the proposal :m concentrate on two brands only in any given
z
,,mar'kec should not be aDplied coo dogmatically.
9. Lucky Strike : It was noced,,.-eat the Chairman had had ponse
to his letter to Americ nds suggesting ld extend its
/1)wnership of return for relk rights to
3enson 5c Redg ted varkets. ',
Q positive, fur sior would be d to establi
markets sho@4k ed --Tom any and what. le
payment plead be required ta ccm te for the diff
r clMle. -,Respective licences.
"'r. . I
-?r Resource Allocation : it was noted thac the BATCa. Plan would
include specific ?1aas f3r focussing the -nosc able managers in those
/mar.-cats which had ::-a 5esc pocencial .4ar producing high quality
(secure, remittable pro;-'cs, Zrouping companies by this criterion
-ataer than Durelv in Gel apnical regions.
4anagement Quality : The Chairman noted zhac although the overall
standard of -management within BATCa. had improved, there still
avveared @o be a shortage or managers with the potential to develop
-uarkecing a," general
;.aza oucsranding. managers. This was an issue
whizn would need to-be addressed in the Kans.
LL.C
ad would
Productivity/Administration : Another issue to be address
'.,)a zosc-comoecitimeness. I-- was noced zhac BATCo. were already
considering theUpotentia- -,-_rr--fdrther production rationalisation and
the Chairman suggested that the potential for savings in
-)administrative costs should &!so be ZL7en priarizv consideration.
1 3@_ China : It was noted zhac SA:--a. were preparing a paper with
recommendacions for changes the argan;
isation dealing wich the China
marke t .
I Organisation : A paper outlining the further changes in
or;anisacion which had been agreed would be presented to the C?C
ur4ng the Eirst ha.T! 3f November.
Leaf Exports It was noced :hat the potential for increasing leaf
exporcs was being given a high priority by BATCo. and would be
considered as a speciric issue within the ?Ian. A review paper
outLiining the proposals which -ire currently being developed would be
presented ta che C?C during November.
RS/Djs
30th October 1991 C)
U_
BAT Industries document for Province of British Columbia 23 April 1999