BAT INDUSTPIES
Wncsor House 50 Victona Street London SMI ONL Teleonone 01-222 7979
From the Chairman To: Mr. S.F. Frigou (BATUS)
B.A.T Industries' Guidelines 1989
1. -.za arzached Cui:iel'nes outline t@ne strategic Pr iorif --@ es a=d -irancial
a,@ze,-4
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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 UX quoted companies.
(b) Achieve a return on assets employed sufficient to generate a not
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 Service*, Retailing
and Paper/Pulp, with particular emphasis on UX/Europe and North America
but still maintaining the existing strong presence elsewhere it 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 medium and long tam 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 to make a full contribution
to Group development.
4. In docarmining 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
Tarmacs' 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 systems 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 CP C. 'If clarification is required, Dr. Salter should be
able to provide this. If there are specific Guidelines which you wish to
discuss further, plaase let me M.,
%O
P. Sheehy
loth July 1959 Enclosure
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BAT Industries document for Province of British Columbia 23 April 1999