10 CE: '90 17:38 B -4 7 ~P:, 3-1 = 5816 P. 3
M E M 0 R A N 0 U M
TO. K. LQ&r_h rROM, O.J EtchoIJA
DATF. 7th December 1990 RZY . WE/cdh
Arqentina, Noblaza-Piceardo (N-P)
Local Announcement of 3rd Ouarter Results
Appendix I & II sumariza the figures that were
announced locally on
Friday, the 7th December. The australes loss for
the n1ne month of US$
67.fimn equivalent represents in excess of 2S% of
the issued capital and
reserves of the company and as such N-P, as a
publicly quoted company, is
required to formally advise the local Se=ity
Exchange Commission of the
fact with, I understand, a brief explanation.
Those, results ccep with
the reported half year loss of US$ 32an.
Competition, Massalin Particulares (HP) a Philip
Morris subsidiary, will
be issuing their results today. Because of the
vagaries of local
accounting it is difficult to set'-sto what those
will show although for
the half year they reported a loss of us$ 22mn
equivalent.
iroup
The nine month losses for N-P included in the BAT
Industries, C
results for the period were USS12.1m. The
differanc* arises because of:
1. The exchange- rates used, namely the actual
Am/US$ rate of As 5605 to
US$1 used to calculate the US$ equivalent for the
local accounts as
compared with the projected year and rate of An
10,000 to USSI which,
in line with group accounting policy, is the rate
used to translate
results for operations In hyporinflationary
countries.
2. The different accounting conventions, with
local accounts being
prepared an a replacement cost basis whilst group
accounts are
reported on an historic cost basis.
In broad tarms, the deterioration in the results
for the Industrr is due
to price delaying tactics initiated by MP in March
of this year with N-P
being further affected directly or indirectly by
various goverment
actions to combat inflation.
Appendix III sets out a general statement that
should be used in the event
of any press enquiry. We purposely are keeping
this general as we do not
want at this stage to put in jeopardy discussions
taking place within the
Industry and with Goverment and Philip Morris
which hopefully will
resolve the problems that N-P is currently facing.
Additionally we don't
want to unduly aLarm the banking fraternity who
continue to support N-P.
This statement has been agreed with Peter Hazel.
At this stage we would prefer to avoid questions
and as such I an not
enclosing a draft set of Q & An although these
have been prtparod and can
be discussed should you so wish.
-4
10 th December 1990 cc P J C Hazel ON
o 8 Watterton 00
R R Pilbeam;
BAT Industries document for Province of British
Columbia 23 April 1999


LO rZ-: '90 17: 38 B A T 3PL) FLY-F 071
(figures in millions of UY141-10ar-sr
Sale@ volume M Cis.) 13.814
Gross #all@
cost of Sales
Administrative ExPeAGGs 23.0)
14 arketing 1XP*ZJ*6 L-221.11
Insult on Uposurs to Inflation
financial 11SM4 5.2
Non-rizantial Items
Other Iacono &Ad BXPOAGOS
?Ix
P. 4
APPENDIX I
C7
-4
BAT Industries document for Province of British
Columbia 23 April 1999


10 DE: '90 :7: 3 T ?PD FL-XR 0771 777 5816
1614191 MT HAMM 194~11.2
(Figures in Millions Of 9.1 DO are)
Cash, lank* and Financial ravostsents
Trade Debtor* sad others
Stocks
Long Ura lavestsont&
fixed Assets
TOTAT. ASSITS
Trade Liabilities
lask Sorrewtogs
other Uabilules (1x4jas and Others)
Provision for contingencies
MAL LZABILITZIS
rasso capital 404 Reserves
Profit and Less - Carried forward
Profit And Less - Currost period
TOTAL IRA M OLDIRS r M 9
PAZ/ulb
720-1upabris
U-1
P. 5
AMMIX Il
8.11
till
79.7
0.1
-92j-
194.7
30.1
-1141
10.6
154.0
19.0
LIZA1
105.4
rQ
-4
-j
(7 N
co
NJ
r1 j
BAT Industries document for Province of British
Columbia 23 April 1999


10 .,E,- '90 17:39- B A T SPD FLOOR 071 --' SB16
P.6
APPMIX III
Nablaza-Piecardo - Arqantina
Results for the nine months to the 30th September
1990
The, losses published for the nine months to 3oth
septambe are on & local
accounts basis which takes into acco=t, replacemat
costs.
The doterioratioz of ths CdMV&nY'6 Position Is due
primarily to
inxufficiant price increases to COV*r increased
costs. The situati= him
been further ----",-tad by the, hyperinflatioruLry
situation, inequalities
in the tax sygUm and increased competitive
activity.
Sizwe October the CmWanyls position has improved
with a series of price
Inc ases being put into affect. Dizcussions art
takinq place with
c.overnment about the tax position.
MM
10 th December 1990
BAT Industries document for Province of British
Columbia 23 April 1999