:.-,.c IX - ?H071.1"IX : CONF7_Rz'.;CZ PROG"'IM-7
The priaci-pa-' a--'= o" the meeting vi'l be to consider how the Group can best
deve:oo in the future, taking advantage of the international nature of B.A.T
i y n
-industries in --onsolidating and expandiag the four maia sec,-ors of act vit i
Tobacco, Retai-ing, Financial Services and ?aper/Pulp.
There wil-I @e sessions co consider the issues and development options in each
of these ma -ac:i-,ric ies. ',;Lrhin these, delegates will be asked to present
their views on :-e issues and options for their own countries, concentrating
on actions 4.:or further development not included in their existing five year
plans.
Since we will wish to focus on priorities, it will be helpful if there can be
some quantilicat'-an of the options which are identified and if delegates can
specify not only the -financial but also the management resources which will be
needed to take advantage of these opportunities.
One of the aims of the conference will be to consider the action necessary to
ensure that we have or can acquire the hit-an resources required to develop and
manage the Groun in the future. Although this subject will be dealt with in a
separate session towards the end of the conference, the management issues
should also be considered fully in each individual contribution.
The draft ? ro for the conference is attached. The initials against each
item itdicace the person who will be responsible for introducing the subject.
Following the ?attern of CAC Vill, it is ,intended that, wherever possible, the
papers presented at the conference should be relatively brief and should
concentrate on LdemtLfying issues for discussion.
To assist delegates in preparing their own contributions, it is intended that
brief sum-Aries o-; the introductory papers to be presented for Items E, F, G,
H, J and K will be circulated before the end of February.
The following ,IC-_as indicate the suggested aim and content of each item on the
programme.
Item A : Chairman's Introduction and Review
14111, include a review of eve-its and deveLoometts since CAC Vill and will
relata these co the objectives and strategies for B.A.T Industries, discussed
at Friedric'isruhe.
Item B : Operating Group/Company Reviews
In these reviews, delegates will be asked to cover the results for 1984 and
the ob.iectives and plans for the period to 1989. The suggested form and
content for these reviews are the subject of a separate noce which is attached
as an appendix.
Item C : Crouo Financial Forecast
Will summarise the results t@e Croup is expected to achieve over the next 5
years, based on c@-e plans of the Operating Groups and Associated Companies.
Also included will be an assessment of the financial resources which the Group
can call on co fund any additional inveszzent which may be proposed, in order
to accelerate the development of the Groui.
Item D : Croup Strategy Review CD
Will outline the current objectives an"' strategies for B.A.T Industries and
will describe the action in hand to implement the agreed strategies.
Strategic issues -.;hich still need to be resolved will be highlighted.
00
BAT Industries document for Province of British Columbia 21 April 1999

- 2 -
Item E : '@'4_=ancia! St:-:ices - StrateSies and Develooment Oocions
In the iatroducz`oa, the current activities in Fiaancial Services and the
progress made in evc,-Ting a long te--= strategy for the development of the
Group's I:inancia: Ser-;ices activities will be described.
Delegates will then be asked to describe the results of their own studies of
the develooment oo:ions for Financial Services.
The session will and vt_:h a more general discussion of the strategic options
for the Group.
Item F : Retail - Development Options
Will review the develo=enc options identified for the Group's Retailing
interests in the '-SA, @aaada, UK and Germany. This will then form the basis
for a wider rangizg I of the worldwide potential for B.A.T Industries
in Retailing.
Xr
, - Dennis Redding wi:' revort on the work he has coordinated to consider
what benefit could be obtained from increased co-operation between the buying
functions in different Group companies. Re will also report on the follow up
from the work on . ata-4- productivity which he presented at CAC Vill.
Item G : Paver
The development options fo: the Group in Pulp and Paper will be considered
with particular re:arezce to the long term potential for sales and profits
from Carbonless, the potential for the Group's other paper businesses, the
plans for developing Aracruz, the potential opportunities for investment in
other developing count:--'es and the ways in which this might be accelerated.
Item H : Tobacco
Will cover the key issues for the Group's Tobacco businesses, including
Tax and Competitive Pressures. Action taken since CAC Vill to improve the
effectiveness of innovation and to improve the cost-effectiveness of
promotional ex3eneiture wi-'-' also be covered.
Dr. Ray Thornton su=arise the current position on Smoking Issues.
Item J : Geograchizal Issues
Will consider the I for the Group of the current and projected
future geog rap, di sr on of assets and profits. Issues to be
discussed will include the extent to which there should be objectives and
strategies to zod this distribution. Action which might be taken to
accelerate the transfer of expertise from one region to another will also be
considered, including t'na prnsress to date on developments based on
Agricultural 3 4.otv.hno:oiy -
Item K : Personnel @.ssues
Will discuss the ma:tage=en-. development implications of the Group's
strategies, wi.:h pa::44c-41ar reference to action which needs to be taken to
ensure that the Grzu-) can razruit, develop, motivate and retain the key people
who will be requira4t to =ee: the new management challenges inherent in 'the
Group's deve1on=;____
RS/DJA
7th Teb 1535
BAT Industries document for Province of British Columbia 21 April 1999