BAT INDUSTRIES
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From t,).-z To: Hr. B. D. Bromley (BATCo.)
B.A.T Industries' Guidelines 1989
1. The attached Guidelines outline the strategic priorities and financial
targets which have boon agreed for BATCc - and which should be reflected in
your plans for 19 90-19 94.
2. The Guidelines are consistent with B.A.T Industries own objectives to:-
(a) Continue to achieve growth in earnings per share and dividends per
share comparable to or better than other leading UK quoted companies.
(b) Achieve a return on assets employed sufficient to generate a net
cash flow which Is adequate both to pay the dividends and to fund the
investment necessary to support the required growth.
(c) Concentrate development in Tobacco, Financial Services, Retailing
and Paper/Pulp, with particular emphasis on UX/Rurope and North America
but still maintaining the existing strong presence elsewhere in the
world and continuing to seek opportunities to strengthen the position in
the Asia/Pacific region.
3. A priority in 1990 will be to position the Group for sustained
profitable growth in the sodium and long term and it will be necessary for
each of the Group's businesses to be reviewed critically, to ensure that
they either have or can build up the potential co make a full contribution
to Group development.
4. In determining the strategies to be followed, it will also be necessary
to take Into account the need to improve on the forecasts for 1990 included
in the 1989-1993 plans and to be aware of the limitations on the funds
immediately available for investment following the acquisition of the
Farmers Group in 1988.
5. Priority should also be given to strengthening the management resource.
There should be specific plans for selective recruitment at senior levels
and for strengthening the system for the recruitment, retention,
development and activation of managers with the potential to fill senior
posts in the future.
6. In the main, the Guidelines restate objectives and priorities agreed
previously with the CPC. If clarification is required, Dr. Salter should be
able to provide this. If there are specific Guidelines which you wish to Nj
discuss further, please let ma know. CD
P. Sheehy 421b
19th July Enclosure
BAT Industries document for Province of British Columbia 23 April 1999