CAC Vill - Friedricheruhs Explanatory Notes on Draft Progame These note@ relate to the Items shown on the draft programs: for CAC Vill dated 23.3.83. A. B.A.T Industries Review In this paper, the current situation, prospects and immediate key Issues for the Group will be r*vieved. 6 hr) S. Operating Group/Company Reviews Theo* reviews will sumarlse the current situation for each operating Group/Company and also the action in hand to build an Identified strength* and to eliminate weaknesses. Delegate@ will be asked to indicate how their current performance and plane relate to B.A.T Industries Objectives and Guidelines. (h hr each) C. Smoking Issues After a brief introductory paper outlining the current situation and the most significant developments over the past year, delegates will be invited to discuss identified key Issues. (2 bra) D. Tobacco Key Issuas/Implicatlons Issues to be discussed will Include factors affecting the market (e.g. economic growth rates, levels of taxation, economy brands, etc.). possible responses to markat/COnpetiLiVe pressures and the implications for profits and cash flow in the Group's Tobacco activities. (2 bra) 1. Public Affairs Issues Issues to be discussed will include- - txpected trends in public attitudes and in legislative controls on industry - Attitudes of Governments to foreign investment - Attitudes to conglomerates - Implications for B.A.T Industries (2 hrs) T. Personnel Issues Issues to be discusse4 will Include employee participation, communication and management development. (I hr) C) Ln L14 BAT Industries document for Province of British Columbia 22 April 1999 2 C. Group Financial Forecast The introductory paper will out I in* the Group's five year forecasts for sales, profits and cash. The Implications of these forecasts will then be discussed. (1 hr) R. 10 Year View/Investment Strategy The conclusions from the papers presented to the B.A.T Industries Board will be summarised. Major factors Influencing the Geographical and Industrial development of the Group will be discussed, including the criteria for new investments. (2 bra) J. Non-Tobacco Manufacturing options Options in Ron-Tobacco manufacturing will be discussed with particular reference to growth prospects, the ability to earn acceptable returns on assets and opportunities for technology transfer. (2 bra) K. Opportunities In Services Opportunities in Retailing will be considered and also opportunities for investing in other service activities. Potential benefits of increasing the proportion of the Group, a activities which are in service activities will be discussed. (2 bra) L. Company Strategies The heads of the major diversified operations within the Group will be asked to describe their approach to diversif IcatIon, with particular reference to:- - The types of activity preferred and the criteria that led to these choices. - The competitive position of the main diversified operations. - Growth potential - Managing risk - Attitudes to intra-Group co-ordination/co-operation (Z bra) 23rd March, 1953 its/Ps NJ CD 00 C1 NJ Ln BAT Industries document for Province of British Columbia 22 April 1999