0 R A F T
Guidelines for Wiggins Tespe : July 1987
General
1. The overall objective for Wiggins Tespe should be to build on existing
Group strengths in order to develop and maintain strong positions in
the UK and Europe in Carbouless, Fine Papers, Distribution and The
manufacture of Eucalyptus PUlp4L 4%..T- ;.a rAkw, -tNj@_
Wu %. Ift-tw %-ft- -
2. Wiggins T"pe should aim to position its businesses in leadership
positions in growth markets and ensure that each business is operating
efficiently and achieving returns sufficient to Siva a cash flow N-k "J(
A either fund real sales growth of at least 6 per cant a
year or jo produce an equivalent cash surplus for investment In ocher
activities. Where it is not feasible to achieve the required position
or performance, action plans should be developed for the divestment of
the businesses concerned.
Financial Guidelines
3. The Wiggins Teape Group as a whole should aim to achieve a RONA of at
least 22 per cant on an historic cost basis of accounting *ad there
should be a similar target for each of the individual businesses.
4. The following dividends are expected fros Wiggins Tespe: -
1987 1988 1989 1990 1991 1992
Is 24 31 35 39 44 A9
5. Wiggins Tespe should aim to maintain a debt:equity ratio of 50 per
cant or below.
Specific Priorities % 46... tAr- C-ftr-
6. For Carbouless, the main emphasis sb to be an
developing and maintaining a strong ion in the
higher-quality, premium-priced secto the first priority
should be to review the potential f the projected
profit performance. In particular, action should be taken to improve
productivity and efficiency in order to achieve the position of
lowest-cost producer and, as far as is possible, selling prices should
be increased in line with increase* In pulp prices.
A.3 *V." d. 4" cAr-
7. Plans should be developedi., nceraing the most appropriate option for
stating the expected incremental base and U requirements.
S. Wiggins Toape should continue to evaluate opportunities to strengthen
the Group's position in France, Spain and Italy, including the
monitoring of possible acquisition candidates.
9. The strategy of concentrating an hilh-valm -product in FLU
Papers should be continued, with consideration being given to the M;
soot appropriate ways in which this activity can be developed and
extended, particularly in Europe.
10. However, Wiggins Tespe should also seek to improve performance in the
Fine Papers division. both through implementing price increases
whenever possible and by improving productivity.
BAT Industries document for Province of British Columbia 23 April 1999

2
11. Wiggins Teape should continue to participate as a manufacturer of
copier and other business papers and plans should be developed to set
up an integrated plant for producing copier paper.
12. The priority function of the Wiggins Teape Distribution business
should be to support the growth of the Group's manufacturing
operations, though each morchant should be efficient and financially
sound in its own right.
13. Special emphasis should be given to the need to improve performance in
the Distribution businasO.5 Tn particular, the performance of the
individual European sure Lug businesses should be improved before
consideration La given to expansion through acquisition.
14. Action plane should be established for the proposed divestments of the
overseas merchants in Japan, Singapore and Malaysia.
15. Suitable distribution arrangements should be developed in Spain to
support the Soporcel and CZASA investments.
16. Wiggins Tempe should continue to develop, &M monitor the efficiency
of, the Soporcal and CZASA operations in order to ensure
continued access to low-cost Eucalyptus pulp over the sodium term. In
addition. the forestry development programmes being undertaken by
Soporce.1 and CMASA should be monitored and supported by Wiggins
Teapot.
17. Wiggins Teape should develop plans for reducing the Group's commitment
to son-cora businesses.
18. Plans should be established for developing a central argodsatiorm
appropriate to the proposed longer-term shape of the Wiggins Teape
Group. In addition, further consideration should be given to
decantralising services currently provided by the Group.
.4 4 Ott.
cis/DJA.
21st July 1987
rs.:#
C)
BAT Industries document for Province of British Columbia 23 April 1999