09L
B.A.T INDUSTRIES'GUIDELINES : OCTOBER 1983
IMASCO
Purvose
1. The purpose of the Guidelines is to record the policies, objectives and
strategies relating to Imasco which were agreed by the B.A.T Industries'
Board following the discussion of the Group Financial Objectives and Group
Investment Strategy papers. They also cover items agreed at discussions
of the Imasco Plans and 10 Year View which were held during the year.
2. The Guidelines will be used as the basis for the CPC discussions of the
Imas co Plans and 10 Year View in February and May 1984.
Priorities for Imasco
3. Imas co' a strategies for development throughout North America should take
into account BATUS' plans in order that, so far as is possible, potential
conflicts of interest are avoided.
4. In Tobacco, there should be particular emphasis on improving the level of
creativity in the business in order that it should be in a strong position
to react to future competition through price cutting or through technical
developments. It is important to establish and maintain a lead in
developments such as expanded tobacco and low tar cigarettes and also to
identify relevant market opportunities in which these might be applied.
5. The East Food business should continue to receive a high priority,
including the consideration of alternative methods for developing the
chain without heavy capital expenditures
6. The strategy for Retailing should be developed further and should include
a critical assessment of the prospects for each element of these '
activities. The decision to divest the Collegiate Axliugtou'@hain should
be implemented.
7. Imasco should be encouraged to continue to seek opportunities for a
substantial new investment, preferably in Canada, in consumer goods or
services. However, B.A.T Industries will wish to debate any proposals for
major new investments in energy or other resource based industries. '
8. Wherever possible, new investments should be funded by internal cash flow
and 'by the proceeds of divestments.
9. It is intended to maintain the B.A.T Industries' share of Imas co' equity
at not less than 4OZ. If additional finance is required to fund new
investments, B.A.T Industries will consider providing additional equity
finance, consistent with reaching and maintaining a 40% shareholding in
Imasco.
Financial Guidelines
10. Rates of Return: 3.,&.T Industries' criteria for acceptable rates of
return should be applied to any discussions of Imasco Plans and to any new
ventures that are proposed.
11. Dividends: B.A.T Industries is expecting the following Mini-
progression of Dividends from It= co (gross of 152 withholding tax).
1984 1985 1986 1987 1988
CD
can $2 24.6 29.8 34.9 40.0 46.0
CD
L-4
13AT Industries document for Province of British Columbia 23 April 1999

B.A.T INDUS76LIEVOIDELINES : OCTOBER 1983
AMATIL
Purpose
1. The purpose of the Guidelines is to record the policies, objectives and
strategies relating to Amatil which were agreed by the B.A.T Industries'
Board, following the discussion of the Group Financial Objectives and
Group Investment Strategy papers. They also cover item agreed at the
discussions of the Plans and the 10 Year View which were held during the
year.
2. The Guidelines will be used is the basis for the CPC discussions of the
Amatil Plans and 10 Year View.
Priorities for Amatil
3. It is important that the plans for Amatil should be based on realistic
forecasts for the principle activities in the company and particular
emphasis should be placed on a rigorous evaluation of all forecasts made.
4. In Tobacco, the new low-cost production facilities represent a good
opportunity to improve the competitive position in the market. Eowe7er,
profitability should be maintained and attempts to increase market share
should be based on developing a range of marketing plus factors rather
than on price alone.
5. A high priority should be given to developing a longer term strategy for
Amatil, covering the non-Tobacco activities. Preference should be given
to a strategy based on developing a major new activity in Australia
- rather than one based on developing existing activities overseas. The
strategy should also include firm plans to divest those existing
operations which are unsuccessful, have poor prospects or which do tot
fit with the longer term strategy.
6. Retailing, Financial Services and Property are sectors which might be
considered for major new investments. If a suitable opportunity war&
identified in one of these sectors, B.A.T Industries would be prepared to
consider committing additional finance to Amatil.
7. Further consideration should be given to the potential for becoming
established in other parts of the food industry, apart from Snack Foods.
8. The prospects for certain sectors of Printing and Packaging appear to be
poor and Amatil should be encouraged to consider withdrawing from these
sectors.
9. There should be plans for achieving substantially improved returns from
the Poultry activities within the early part of the planning period.
Financial Guidelines
10. Rates of Return: the criteria used by B.A.T Industries for assessing
whether an activity can earn a satisfactory rate of return should also be
applied in assessing kmtil Plans and now venture proposals. Ma
C:)
11. Dividends: B.A.T Industries is expecting the following minimum
progression of dividends from Amatil (gross of 15% withholding tax). co
NJ
1984 1985 1986 1987 1988
Om 9.5 10.8 12.2 13.8 15.6
BAT Industries document for Province of British Columbia 23 April 1999