CAC Vill - ITEM H : 11-00 - 13-00, Wednesday, 28th Sautember
Group Investment Strategy : Chairman's Briefing Note
Page 1 - Paragraphs 4 and 5 (a) and (b) will lead into an analysis by
Mr. Symons of the main figures from the table on page 14 of
the 10 Year View, showing the relatively poor growth rates of
existing non-Tobacco activities and the small percentage
contributions to profits from UK Retailing, Cosmetics and
Printing/?ackaging.
Pate 2 - A reference to divestment from South Africa has been taken
out, but could be referred to in the verbal presentation.
- More importantly, you way wish to expand on the remarks in
paragraphs 10 and 11 by saying that although the longer term
potential for expansion in developing countries is still
considered to be a major opportunity for the Group, it may be
necessary to acquire more core businesses it the developed
countries before this potential can be fully reallsed. The
strategies for doing this will need to be pragmatic and,
although the Group will look for opportunities in the UK and
Europe, the USA is another possibility. If a suitable
opportunity is idemtified, it may be necessary to relax
previous strictures an increasing the level of the Group's
investment in the USA.
?age 3 - Paragraph 5 of the Tobacco section (on the UK market) has been
toned down compared with the paper given to the Board and you
may wish to re-emphasise this point verbally.
- The same applies to Wagraph 5 of the Retailing section,
referring to UK Food Retailing.
Zma-9 4 5 are unchanged.
Pate 6 - has been toted down but the sense is =changed.
Lne 7, - The financial implications of the strategies proposed will be
covered by Mr. Symons who will expand on the Table in
paragraph 2, showing the size of the gap in sales and profits
that needs to be filled if the 4Z growth target is to be met.
Be will then go on to talk about the resources that are likely
to be available for investment.
Page 8 - The criteria for acceptable Group development will be picked
up again in the papers on Thursday morning. RoweTer, you my
wish to have them debated to find out whether they are
understood and accepted.
- The reference to 'Turkey' has been taken out of paragraph 4.
Page 9 - You may wish to make the point that the experience so far with
the project tesms has underlined the importance in development
of management team who have a very good knovledp of, and
commitment to, an industry or geographical area. Further
progress in the project team depends on positive initiative* C)
from team members, re creative ideas flowing through
from the people working for them, 00
BAT Industries document for Province of British Columbia 22 April 1999

Page 10 Financial Services will be covered by Mr. Garraway an
Thursday.
You may vish to refer to liorachmology yourself bat Mr.
Worlidge will also cover this and the otbar industry sectors
mentioned in his paper on Thursday.
Page 11 You may vish to mm this as an introduction to the sessions on
Thursday, saphasising the contributions you are hoping the
delegates can uake in suggesting vark that should be pursued
in the Centre.
RS/DJA
21st Septenber 1983
00
BAT Industries document for Province of British COIUMbia 22 April 1999