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Sir Patrick Sheeny
_-4wrw 17th July 1,991
3 A -- .140us"Mis : I
To: Mr. P. Crawford
B.I.T Industries' Guidelines : July 1991
-.he attached Guidelines 3umarise what I believe to be the
agreed position on the objectives and strategies for Imasco,
which we will expect to see reflected in your plans for 1992-1996.
If there are any points from these guidelines which you wish to
discuss further, please let we know.
1. The Guidelines are consistent with B.A.T Lndustries' ova
strategies and with our objectives to:-
(a) Provide an above-average return to shareholders through
dividends and capital appreciation based on a sustained
trend of above-average growth in Earnings Par Share,
achieved by developing and "pending the at cup' 0
activities in Tobacco and FinAwALL Services.
(b) Achieve a rapid recovery in profits in 19 91-1992.
2. In view of the current situation, we are putting particular
emphasis an improving prof itability, on reducing costs and
on improving asset productivity, ensuring that each activity
within the Group achieve* a return OU assets Which Will
generate a net cash flow suf ficiant to pay a dividend &M to
fund the investment necessary to support abover-average growth
3. We believe that it is important to be particularly rigorous
in this respect at present both to achieve a rapid short-tars
Inprowment in profits and to create a sound base for future
growth.
4. One specific issue not covered in the Guidelines which we
will also need to discuss is the lmpUcAtious for B.A.T
industries of the Canadian Financial Services legislation,
whLch could have the result of reducing our effective
shareholding In Canada Trusc to 26Z. This Is a matter of
saw concern to us about which I will be writiag to you
separately.
P. Sheehy
01%
BAT INDUSTRIES CONFIDENTIAL- CATEGORY 1: MINNESOTA TOBACCO U-nGATION
BAT Industries document for Province of British Columbia 23 April 1999