3
SECRET
GROUP 10 YEAR VIEW 1980
INTRODUCTION
1) The purpose of this paper is to present a 10 Year View of the future
prospects for B.A.T Industries, based on the information contained In the
Operating Group 10 Year Views.
7
2) It is intended that the paper, together with the Group Fim=ial pi-C, -
Forecast, due to be presented at the same Board meeting, and the'- Future
Business Environment paper, due to be presented in July, should form the main
inputs to the Group Investment Strategy paper- which La due to be presented to
the Board in September.
The three papers presented in June and July have therefore been
ilea' Sned to be complememtarv with each providing part of the total
taiformation base for the Investment StrateMr.
3) In this year's 10 Year View, particular attention has been given to
establishing the way in which the Operating Groups Intend to develop their
respective trading bases. The fi.-ures presented here are, therefore, all in
constant (1979) terms so that they give as clear a picture as possible of real
rates of growth.
4) A disadvantage of using this approach is that It is difficult to
obtain a clear picture of cash flows. However, this aspect is dealt with in.
the Group Financial Forecast.
5) The main emphasis in the 10 Year View is in assessing. In qualitative
terms, whether the businesses described la the Operating Group 10 Year Views
are such that they can form the basis for a Group 'Investment Strategy which
will most B.A.T Industries' requirements in tarms of profitability, growth
rates and levels of risk, both up and to beyond 1989.
6) It will be particularly helpful to have comments from the Board at
this stage, before the drafting of the Investment Strategy paper begins.
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2
ME OVERALL VIEW
1) Table I shows a consoLidation of 'baseline' fioptras fro a tbe Operating
Group 10 Year Vtews, indicating the expected development to 1989 of their
existing businesses.
2) The 1979 figures differ so-u-jhat from the actuals shown in the B.A.T
Industries Report and Accounts in that figures for businesses which have been
or are about to be closed or sold (e.g. Kaarley and Tonga and Fort lotilliam)
have been eliminated. In addition, figures for businesses acquired since the
and of 1978 (e.g. K.P.I.) have been included on a full year basis. A detailed
reconciliation showing all the adjustments made is given in an Appendix.
3) The IM figures show the expected development of the Group's existing
businesses, including the effects of investments for replacement, and for
expansion plans already agreed. However, they specifically exclude additional
investments which the Operating Groups hope to make but which have not yet
been agreed. These potential additional investments are covered separately,
later in the paper.
TABLE I
Group Consolidation 1979 and 1989
Increase
1979 1989 1979 - 1989
(La) (gm) P.&.)
Turnover 4,676 6,676 3.6
Trading Profit 504 764 4.2.
Trade Investment 14 47 12.8
Investment Income 44 95 8.0
Operating Profit 56Z 906 4.9
Interest Paid (100) (90) (1.1)
?rof it Before Tax 462 616 5.9
Tax^tLon (205) (350) 5.5
Profit After Tax 257 466 6.2
hinorities (29) (34) 1.6
Profit Attributable
to B.A.T Industries 228 432 6.6
The rates of growth shown in the table. are in line with the overall
,roup objective of UintaininS a rate of Srowth of ZNZ p.a. im real ter4s.
5) There was tnsufficient information available from the Operattlit Group
10 Year Views for a view to be taken. oa the validity of the assumptions for
Tavestment income, Interest paid and Taxation and these aspects o
forecast will require further study.
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6) The remaining sections of this paper are concerned with c
the basis for the forecasts of Turnover, Trading Profits anJ Trade Investment
aal the implications of these for B.A.T Industries.
BAT Industries document for Province of British Columbia 23 April 1999

3
TUMNOVER AND TRADING PROFITS
1) Table II shmis the contributions from each Operating Group (further
subdivided where appropriate) to total Group Turnover and Trading Profits for
1979 and 1989. Also shown in the table are avacage annual rat@3 of increase
from 1979 to 1989 and the margins of Tcn-lLna -Prof its to Turnover in each
year.
TABLE 11
Turnover, Trading Profits and Margins 1979 and 1989
Turnover Trading Profits Profit Margins
1979 1989 Inc. 1979 1989 Inc. 1979 1989
(em) (W (% P.&.) (La) (Ea) (% P.&.) M M
BAT Co.
0
Tobac 1" 163 1,226 202 261 2.6 17.4 21 .3 @
Other 237 383 4.9 15 29 6.8 6.3 7.6
400 1,609 1.4 217 Z90 2.9 15.5 18.0
P
s
BATUS
Tobacco 571 632 125 147 1.6 2L.9 23.2
Retail 870 1,190 33 83 9.7 3.8 7.0
Paper 148 346 8.9 27 44 5.0 18.2 12.7
1,589 2,168 3.2 185 274 4.0 11.6 12.6
W.T.
Paper 548 863 4.6 55 i0l 6.3 10.0 11.7
fa-c-F./print 380 529 3.4 30 4L 3.2 7.@ 7.8
BAT Stores
Retail (a) 642 1,361 7.8 10 41 16.2 6 3.3 LI
V Y4 --car
-BAC sr F-1-
Cosmetics 116 145 2.2 5.4 8.6 11.7
Group
TOTAL 504 764 4.2 10.7 11.4
Note (a) 1989 figures adjusted to exclude the proposed acquisition of a
further chain of supermarkets.
2) Significant points from the table are as follows:-
a) Apart from HPI, and the paper interests of BATUS, every part of the
Group identified in the table is expecting to incrt*se margins over
the 10 year period.
b) The Tobacco businesses are forecasting rates of growth significantly C)
lower than those for the non-Tobacco businesses. The Comparison is
distorted in the case of BAT Co. by the fact that several companies
that are Subsidiaries in 1979 are expected to be Associates by 1989 co
and arm therefore excluded from the figures for that year. Ra@yever, 1-J
even allowing for this and excluding the appro2ri-2ta WAM,411teg from FIQ
the 1979 base the rate of growth in turnover is still only 1.7% P. a. 1-4
over the period.
BAT Industries document for Province of British Columbia 23 April 1999

4.
c) The fact that the lower margin, nort-Tobacco, businesses are growing
faster would normally result in overall Group profit margins being
depressed through a change in the 'mix' of the business. Rv-iever, the
very significant improvements in cutr,gins being forecast for almost all
parts of the Group results in an overall Lncr3-tsa it for t'w
-group as a whole, albeit an a relatively modest scale.
3) Table I'll gives an analysis of the main contributors to the forecast
improvement in trading profits over the period.
In the table, a distinction is made between improvements due to growth
and the further improvement due to improvements in profit margins. All the
improvements in businesses which arm currently loss-wkars (UK & E and UK
Skmarstoras) are Included in the 'margin improvement' Column.
TABLE III
Sources of Trading Profit Improvement t979-89
(La) Total Due to Improved Main
Improvement Growth Margins Contributors
BAT Co Tobacco 107 (a) 43 Brazil 21
64 UK & E 45
HQ L4
Others 14 9 5 Rome Imp. 7
DAVOS Tobacco 22 14 8
Retail so 12 38
Paper 17 35 (13) Carbonless
Wiggins Teape 46 31 Carbonless
15 UK
IMPI 11 12 M
BAT Stores 35 7 Argos 7
28 Superstores 17
Super-urkets 11
BAC 7 2 5
Group HQ (1) (1)
308 (a) 164 144
(a) Compared with a 1979 base excluding Subsidiaries that will become
Associates bef or* 1989. Inclusion of these reduces the total increase
to X260 million of which BAT Co. Tobacco contributes 959 million.
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The importance of profitability im;r:)%remeats in the Group's UK
operations is self-evident with UK & E, UK retailing and WiZZias Teape
together accounting for E88 million. The other important contributor is US
Ratailin,S where substantial improvements in Gimbels and Saks are forecast.
5) Apart from Brazil, and other developing countries such as Pakistan and
Kenya where BAT Co. has subsidiaries, veSx-Lttt le @3 the Group's profit
improvement is due to overall market growth. It is more common for growth to
be due to holding or Improving a position in a market 3e,gMant which is itself
growLne within a total market which is either static or growing zore slowly.
Significant market segments of this type are the low tar segments of the
Tobacco market, Carbonless, Catalogue Showrooms (krgos) and Rome Improvments
in Germany.
6) Taking an overall view of the information presented in Table III the
key assumptions underlying the Operating Group 10 Year Views would appear to
be &* follows:
(a) That UK & E can obtain a significantly larger market share In the UK
and that it can be operated profitably. In addition, that Superstores
can be expanded and made profitable, that profitability can be
improved elsewhere in the Group's UK based businesses and, that the
performance in Gimbals and Saks can be improved.
(b) That growth can be maintained in Carbonless, ArSos, and Some
Improvements in Germany, and that the Tobacco markets will continue to
expand in Brazil and in other developing countries.
7) There is also an implicit "gumption that the Group's businesses Will
be able to maintain their positions in the other markets in which they are
operating, including Germany where any reduction in the profit contribution
from laterversa would have a significant effect on Group profits.
B) Looking to the future it appears likely that the GroupL will ba
continuing to operate largely Ln mature tuar1kets which, because of the overall
economic situation, are likely to be growing only slowly. In those
circumstances there will be a need to identify clearly which segments are
likely to expand more quickly than the average and to be positioned to take
fun advantage of this. This has already been achieved very successfully in
.Carbonless but it appears that further expansion for this product group will
be achieved only at the expense of some reduction in margins. It might be
askad, therefore, whether there are significant now ideas coming through on
which further growth can be based. It might also be asked wheevtc Choirs is
.sufficient emphasis in Operating Group plans an using existing Croup skills
and expertise as a basis for expanding into now markets. This will be
considered again in the section of the paper dealing with the potential for
further growth beyond that shown Io that 1-1 , !.A Views of the baseline
businesses.
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BAT Industries document for Province of British Columbia 23 April 1999

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6.
,-;oCiATED COMPANIES
I-% 0tvidends from Associated Companies aca forecast co Increase from Z13
million in 1979 to E47 million in 1999.
The main sources of these dividends are sumarised in the -
TABLE TV
Dividends from Associates 1979 and 1989
1979 1989
UK, Europe, N. kmerica, Australia 11 20
Latin America, Asia, Africa 2 27
13 47
2) Included in the first classification are the existing kssoctates
Holias, Imasco, Amatil, APPX., Horton and Skandinavi3k, and the new Associate
in the Canary Isles, covering Spain. The second classification covers the
existing Associates in India Chile, Mexico and Brazil (Aracruz and Polo), and
the existing Subsidiaries which are expected to become Associates in ItSeria,
Indonesia, Malaysia, Venezuela and Central America.
3) It is significant that, whereas in 1979 iwst of the iaco-m from
Associates comes from the developed countries, income fro-a the developing
countries is the more important source in 1939. Since the control on local
management and an the levels of dividend distributions Iron Associates La
o%viously less than in the and 4t,ice co-imanies ta C-
-4,ritlapiug countries may be expected to '*a -soce difficult to deal vth than
those in developed countries, obtaining the full benefits from the new
Associates Ls likely to require considerable management expertise.
4) The trading profits in the Associates are expected to grow faster than
:he trading profits in the Subsidiaries and La BAT Co. the total trading
profits in all companies that are expected to be Associates by 1989 are
forecast to rise from E186 million in 1979 to E378 million in 1989, which is a
growth rate of 7 .3Z p-a- This compares with an increase from E134 million to
E261 million (5.4% P. a.) in the companies that are Subsidiaries throughout.
5) Although, by convention, Operating Profits are arrived at by adding
dividends from Associates, and fro* Trade Investments, to Trading Profits this
understates the potential importance to the Groa? of the income from
Associates. It 13 probable that, in the future, the accounting convention wil(
be chat so that the profits taken into the accounts will be tote proportion -
,oapany on the basis of its equity interest in the associate.
of the Aisociate's trading profits which are attributable to the Rolding
q Table V shows a Computation of profits j.-Is the m1nor,tL-1;'
shares of the trading profits in SubsUlLaries and then adding the attributable
part of the trading profits of the Associates.
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7.
TABLE V
Trading Profits Attributable to B.A.T Industries
1479 and 1989
1979 1989 Increase
(Em) (Ea) (Z p.a.)
Trading Prof it 504 764 4.2
Less as ts (42) (49)
462 715 4i5
Add Share of Associates 55 152
TOTAL 517 867 5.2
This further wVhas:Lses the potential importance of the income from
kssociates-
GEOGRAPHICAL AND INDUSTRIAL ANALYSIS
-.1) Tables VI and VII show the proportions of Group trading profits
derived from the different Geographical areas and Industries in 1979 and 1939
cts2ectively. 3q,:alt-ja tt is believed. to give a more representative picture
Via z.,. iputation of trading profits has baea rA&de on the same basis as in the
prevtou-; section, allowing for minorities and adding the appropriate
Proportions of profits from Associates.
TABLE VI
'Attributable' Trading Prof its AnalEsad Geographicallt 1979 and 1989
As Z of Group Total
1979 1989 1979 1989
49 165 9.3 19.0
A
Europe 113 159 21.9 18.3
US/Canada 212 321 41.0 37 0
Latin America 72 117 13.9 13:5
Asia/Australasia 47 71 9.1 8.2 0@ ozone
-A,f rica 25 34 4.8 3.9
517 867 100.0 100.0
2) The only, significant change shown up in the table is the increase in
the proportion of profits forecast to come from the M. R*wever, as noted
previously, this is dependent on achievement of the recoveries forecast in the
UK.
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3) The. industrial split of profits is shown in the next table.
TABLE VII
'Attributable' Tradins Profits Analysed by IndustIZ 1979 and 1989.
Proportion of
Group Total (Z)
1979 1989 1979 1989
(Ea) (Ea)
Tobacco 327 455 63.2 52.4
Retail 55 154 10.6 17.7
Paper el 156 15.7 18.0
Packaging/Printing 30 43 5.8 5.0
Other (a) 24 59 4.6 6.8
517 867 100.0 100.0 2
Note (a) Includes Cosmetics,, Rom Improvements, all Amat non-Tobacco and
Group Overheads.
4) The L-jo most significant changes shown in the table are the decrease
in the proportion of profits forecast to coma from Tobacco and the sharp
Lacrosse in Retai liag, although, in this latter case the increase depends to
quite a large extent on the achievement of improved mar3tns .
5) Taken together, Tables VI and VII show tire pattern that =LSht be
expe--tad and the main question that might be asked here is Asthler, when any
additional new investments are made, these should be applied in such a way as
to retain this pattern or whether there are any specific areas which in* Board
'eels should be given preference.
THE POTENTIAL FOR FURTHER GROWTR
1) The paper so far has dealt with the Operating Groups ' 'baseline'
forecasts, showing the way in which they expect their existing businesses to
develop over the next 10 years. However, they also included in chair 10 Year
%*wi a number of outline proposals for additional investments to accelerate
their rates of growth. This section sums4rises the main features of these
proposals-
.2) Although it is known that a number of possibilities for new
invescia-its Are under consideration in 34T Co. none v&s identified
specifically in tho 10 Year View papers received in Group Readquaters.
3) Ta Retailing, continuing growth in the US and UK is likely to; depend
on the Identif Lcation of now concepts whtc% esm take a major share in their
respective maekets. Rowever there is no provision, either in the BAT Stores,
or $A-Ms 10 Year Views, for investments in additional new concepts. Tho only,
major opportunity identified by BAT Stores is a potential iuvast4ent of around
E50 million to acquire another grocery chaLn to complement their Supermarkets
division.
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4) In Wiggins Ttape, 411 o;--)rt-anIt;-- is seen for investing a further LUIX)
million La Carbonless of which 135 IL Ilion would be in Europe and a further
;;.13 million for too s=11 factories overseas, including one in 3razil. They
also believe that a further Z50 million investment might be Justified to
expand their necchantinS activities La Europe. In addition they believe that
E30 million might be spent on expanding their existing fine paper business in
Brazil and a total of E215 million on various activities under the general
he-idta$ of paper conversion, mainl7 setting u2 overseas businesses based an
Wiggins Teape expertise which either exists noq or will be developed over the
next five years or so. The latter investments could include Joint Ventures
(nota'41y in Japan) and would also involve a substantial investment in the USA.
It all the developments described above come to fruittoa the total additional
Laivest.wnt in Wiggins Teape would be E395 million.
5) MI sea a potential for a further L100 million of investment In
acquisitions complementing their existing businesses. Potential investments
of C54 million La this t7pa of acquisition ware Identified in their 5 Year
Plan and they assume that a similar number would be identified in the
succeeding 5 years. This is very much In line with the way id which Xardoris
have built up their business in the past.
6) BAC's 10 Year View identified A possible, opportunity for an additional
investment of 115 million to acquire a fine fragrance house comple-ientary to
Germaine Monteil, but this is the only major opportunity envisaged at
present.
7) A 3u=ary of -hose investments referred to above which have 'Aan
is diven in Wd tablavill
MBLE Vill
Potential Additional Tavestments
Expected performance in 1989 Return oa
Investment Sales Trading Profits Investments
(12) (EA) (la) M
RAT Stores 50 262 7 14-
Figgins Texpe 395 581 68 17
MPI 100 200 - 15 15
BAC 15 is 1.5 10
8) The first conclusion from the table is that only the proposals from
Wiggins Teape are an a scale to make a significant impact on overall Group
results.
9) It is significant that the expected returns an investment are
co"ratively low and apart from casting doubt on the likely acceptability of
the projects in profitability terms, this 4150 ft--%U3 that the not impact on
croup profits small, after tAktng into account the interest chassis
on the additional borrowings which would be needad to finance the
investments. L-1,
10) it may be felt that there is a need to try to identify more potential
Investments which both offer a better return th.,t.i those identified here, and
which are on a scale such that they can be expected to make a greater Impact
an the Group's results- N)
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10.
RISK AN') .`;'-rR7AI'.rrY
1) At first Sight the 10 Year View appears to show that, provided the
Operating Groups achieve the levels of performance indicated in thtl- 0-,M IO
Year Via-as, the Group -dill show a satisfactory rate of growth in profits.
However, this depends on a number of ass=ptions about the Group's businesses
and their operating eaviron.-nent. The object of this section is to consider
text da-aret of risk inherent in these assumption*, and the implic-itions of any
[,iUares.
2) YX Profit improvement from recoveries in UK & E and BAT Stores, and
from improved margins in Wiggins Tas?e forms a key component of the overall
improvement in Group profits, accounting for f88 million. In view of the
likat vilood of depressed trading conditions, the recoveries Cortcast will be
difficult to achieve, particularly if the Pound continues to be overvalued.
B.A.T Stores and UK & F. will also find it difficult to make progress against
the strongly entrenched market leaders in the UK, who will themselves be under
pressure and may use price cutting as a competitive strategy. In addition the
depressed trading conditions will affect '4PT and ')oth they and Wigoins Taape
may find it difficult to maintain existing margins. If current profitability
were maintained, but the IN million of profit improvement was lost the annual
rate of growth in Group trading profits would be reduced friz 4.2% P-a- -to 3%
3) Afurthac L38 million depends on the improvement in margins in US
retitil:1.- and If this too was eliminated the annual rate of Group profit
growth Id drop to 2.4% p.a.
4) There is an implicit assumption that there will be =. losses due to
political upheavals and that renittablitty of funds will not be a worse
problem than it is today. This may be thoug1lit to be art optimistic assumption,
especially for profits which depend on it-tivities outside 'Europe and Worth
America. Approximately E200 million or 23: of profits are forecast to come
f rom these more susceptible sources in 1989.
5) A second source of uncertainty, covering all nvRrsass earmiags, is the
exchange rate for conversion of these earnings to Starling. The simplifying
assumption used in the 10 Year View is that exchange rates will re-oata.
constant. However, If the Pound continues to strengthen in real terms, the
Sterling equivalent of overseas profits will be reduced. Conversely, of
course, a return to a weaker pound will boost Starling profits. So far, in
the first six months of 19RO the pound has become more overvalued, to the
extent of about a further 5%. Even this effective appreciation, if maintained
without any further rise, would reduce the profits forecast for 1989 by E35
million. X-tch additional rise would reduce profits by a further amount. In
addition, the competitiveness of exports from the UK, and of UK sales subject
to competition from imports, will also be afIllected, reducing the prof Its of
all UK based operations.'
6) All of the points made above have been concerned with profits. Any
reductions of these will obviously have a serious impact an cash flow,
affecting borrowings, interest charges and, where the cash flow to the UX is
concerned, the ability to pay d,vt1-!n1s. requirements will also be
affected by any underestimates by Operating GroupSof their investment
requirements. Continuing high taf lation rates will exacerbate the situatLon
and will also put further pressure on profit mar Si as - These factori -Lre f%J
covered in the Group Finaact-03. It is believed that, althoush there
,4 -,.- :6 1'.-%3.iffLaent data in the Operating Group 10 Year Views fully to develop a
quantitative picture of Group C&3h flow the problems shown up in the Financial
Forecast will be equally applicable to the longer term. 00
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CONCLUSIONS
1) The first conclusion must be that the Group 10 Year View is not an
ancouragping one. &lehough the Operating Group 10 Yaar Vt_-4s, teketl together,
show rates of growth for Group OperatiaS Profits significantly hi3her than the
Zk% p.a. Group tar3et, the achievement of these rates of growth'depands on a
number of key assumptions that will be dt!'-ftcult to Sustain. Assumptions that
look particularly vulnerable are tholn ra!errin3 to ac%ktvtnent o!
improved profitability in the Group's UK Tobacco, Paper and Retail businesses
and in the Retail businesses in the US. In addition, exchange rates have been
assumed to stay constant and any strengthening of Sterling would lead to a
reduction in Sterling profits from overseas operations, leading to a further
relations in the apparent rate of growth.
2) Since the Group's aon-Tobacco businesses are expected to expand faster
than the generally higher margin Tobacco businesses there will be a downward
pressure on overall profit margins in the Group. .4n improvement in profit
margins in the non-Tobacco businesses is therefore essential to the
maintenance of good margins in the Group as a whole. Any failure in this
respect could lead to a difficult cash situation developing over the 10 years,
especially if inflation stays at a high level worldwide. Some further
emphasis on profit improvement may be required beyond that shown in the. 10
Year Vievis, perhaps including further divestment of persistent loti
performers.
3) A feature of the 10 Year View is tha increased importance of
Associates whose dividend contribution is axp*ctel to rise by 3 or 4 times
durinS the 10 years. If accounting conventions change so that Che Group's
trading profits include the share of each Associate's peoctts a2propriata to
B.A.T Industries' equity interest In the coupany concerned the effect an Group
profits jould be even more significant.
It may be felt appropriate to consider in more detail the implications
of the expected increased @@pendence on Associates, *spatially in developing
countries. r
4) The potential for continuing fast growth af ter the and of the 10 Years
is not wall established. Many of the existing businesses appear to have a
limited potential for continuing rapid growth, except at the expense of fit
margins. ?erbaps more significant, however, is that the Operating Group sr)
proposals for additional new investment do not identify any new business
similar in prof it levels to Tobacco or to Carboalass.
.5) As they stand, It is doubtful whether the Operating Group Views
provide an adequate base for the construction of a Group investment strategy
meeting B.A.T Industries requirements.
6) It is suggested therefore that, in the preparation of the Gr@up I
Investment Strategy, particular emphaxis needs to be placed on,
a) Identifying more opportunities for developing now products and for
entering new, higher growth, markets.
b) Critically re-examining each element of the existing business to
ensure that the future prospects for growth and profitability are
firmly based and, in cases where there is any doubt about this, to
consider closure or divestment.
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7) The Board may also wish to give guidance on the preferred industrial
and geographical emphasis to be aimed for in any additional new investments.
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BAT Industries document for Province of British Columbia 23 April 1999

APPENDIX
Reconciliatiou of 1979 10 Year Viev Starting Point
vith Published Figures
Results per W 10 Year View Difference Key
Industries Figures to
Report & Accounts Notes
A. (La) B (1m) 3
Turnover 7,228 4,676 (2,552) (a)
Trading profits 466 504 38 (b)
Trade Investments 59 14 (1)
Tovestment Income 44
Operating profit 525 562 37
Interest Paid (82) (100) (18)
Profit Before Tax 443 462 19
-Tax (171) (205) (34)
272 257 (15)
Minorities (27) (29) (2)
Profits Attributable
to BAT Industries 245 228 (17)
(a) Turnover: The main cause of the discrepancy is the elimination from the
10 Year View figures of approximatal7 L2,500 million Tobacco Sales
taxes.
Also excluded are sales figures for BAT Stores' businesses sold (L166
million) for the Yardley closures and for Fort William.
Additions include IMPI (L163 million
.; part year), Argot (132 million;
part year) and IMppe (08 million).
(b) Trading Profits: The main additions to the published figures are from
NPI (913 million; part year), HUppe (L8 million), Yardley (elimination
of 0 million loss). BAT Stores (elimination of L3 million loss) and
Fort William (elimination of 0 million lose). The remaining V million
Ls largely made up of consolidation and other adjustments to the figures
from Tobacco companies.
(c) Interest Paid: Additions include P-3 million in zAT co. and E3 intllion
in SATUS but the most important difference is L11 million added to allow
for the cost of financing the borrowings required for the Mardoa
acquisition.
(d) Taxation: The main additions to the taxation char3e, compared with the
published figures, is C9 million in BATUS.
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BAT Industries document for Province of British COIUMbia 23 April 1999