CAC Vill - Triedrichsruha Explanatory Notes on Programme These notes relate to the its= shown an the draft programme for C&C Vill dated 23.3.83. A. B.A.T Industries Review In this paper, the current situation, prospects and immediate "y issues for the Group will be reviewed. (@ hr) 3. Operating Group/Company Reviews These reviews will summarise the current situation for each Operating Group/Company and also the action in hand to build on identified strengths and to eliminate weaknesses. Delegates will be asked to indicate how their cur-rout performance and plans relate to B.A.T Industries Objectives and Guidelines. (k 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 hrs) D. Tobacco Key Issues/Implications Issues to be discussed will include factors affecting the market (e.g. economic growth rates, levels of taxation, economy brands, etc.). possible responses to market/competitive pressures and the implications for profits and cash flow in the Group's Tobacco activities. E. Public Affairs Issues Issues to be discussed will include: - Expected trends in public attitudes and in legislative controls on industry - Attitudes of Governments to foceign investment - Attitudes to conglomerates - Implications for B.A.T Industries (2 bra) F. Personnel Issues Issues to be discussed will include employee participation, communication and management development. (I hr) -4 C) t-n BAT Industries document for Province of British Columbia 22 April 1999 2 G. Group Financial Forecast The introductory paper will outline the Group's five year forecasts for sales, profits and cash. The implications of these forecasts will then be discussed. (I hr) R. 10 Year View/Investment Strategy The conclusions from the papers presented to the B.A.T Industries Board will be sumarisod. 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 Non-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 hrs) 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's 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 strategic approach to diversification, with particular reference to the two areas discussed under J and K. -12th April, 1983 BAT Industries document for Province of British Columbia 22 April 1999