Directors' report: Business reviewBritish American Tobacco Annual Report 200919www.bat.com/annualreport2009From the ChairmanPerformanceand strategyRegional reviewFinancial reviewGovernanceGroup financial statementsParent Companyfinancial statementsShareholderinformationPRODUCTIVITY£239 millionSAVINGS IN SUPPLY CHAIN,OVERHEADS AND INDIRECT COSTSEffectively and efficiently deploying our global resources to increaseprofits and generate funds to reinvest in our business.We continually seek to increase the productivity of our business. The savingswhich are generated are a source of operating profit growth and revenue forreinvestment in the business.Our focus is on smart cost management, marketing efficiency and capitaleffectiveness. This includes reducing unnecessary complexity to save costs and using our cash and other assets more effectively.Integrated global enterpriseWe are saving money by turning a multinational business operating in over 180 markets into an integrated global enterprise that can take betteradvantage of its scale.Greater integration across our supply chain is helping us to reduce costs,increase speed to market and improve effectiveness. We are also reducing our overheads and indirect costs (anything other than leaf, wrappingmaterials, cigarette making machinery and labour).An integrated, global supply chain (main picture)A farmer in Rio Grande do Sul state, Brazil, attends totobacco leaf in a curing barn. The raw materials used in our products are sourced globally and supplied to theGroup's factories using the latest distribution methodsand technologies, ensuring timely delivery and constantquality control. Our factory footprintManufacturing tobacco products is a large-scale globaloperation. In 2009, our Group companies producedsome 724 billion cigarettes through 50 cigarettefactories in 41 countries.ACHIEVE LEADERSHIP OF THEGLOBAL TOBACCO INDUSTRYPRODUCTIVITYWINNING ORGANISATIONGROWTHRESPONSIBILITY106 Telephone 01473 742424 or contact your travel agentCruise highlightsDate Arr Dep DestinationHamburg Weekend & AmsterdamSails from: Southampton Jazz Northern europeThu 10 Fri 11 Sat 12 Sun 13 Mon 14 Tue 15 Wed 16 Thu 17 SouthamptonCruisingHamburg, GermanyHamburg, GermanyBremerhaven, GermanyAmsterdam, NetherlandsAntwerp, BelgiumSouthamptonPMlate nightearly pmearly pmearly pmearly amearly amearly amearly amAMDeparts 10 November 2011 7 nights from £619 per personBalmoral L1120Visit Amsterdam's museum quarter and Anne Frank's House Explore the wealth of art galleries Amsterdam has to offerTwo full days in Hamburg to see the sights and get some early Christmas shoppingA morning call to Antwerp with an afternoon departure sailing along the Scheldt riverDiscover the art of Rubens in the home of his famous art workshop in AntwerpTake a tour to the Hanseatic city of Bremen, from BremerhavenHamburg, GermanySouthamptonBremerhavenAntwerpHamburgAmsterdamBremen, Germany balcony suitesoutside twininside twinoutside singlePSMSSSBJBABCABCDEFGHIJB JKLMNPlease also see pages 156 & 157 for details of cabin grades. Please refer to page 4 for cruise timing descriptions.L1120 2,019 1,739 1,479 1,309 1,119 1,099 1,019 949 919 819 789 Prices per person from £739 719 659 619 1,809 1,599 1,399 1,349 1,189 1,039Balcony twinsuperior twininside singleCabin gradesbalcony singleCruise highlights include optional tours which are bookable from six weeks prior to departureAmsterdam, Netherlands

www.fredolsencruises.co.uk 107Date Arr Dep DestinationDate Arr Dep DestinationCruise highlightsCruise highlightsRamblers Walking Holiday ¥Scandinavia & GermanyWed 30Sails from: Southampton December 2011Thu 01 Fri 02 Sat 03 Sun 04 Mon 05 Tue 06 Wed 07 Thu 08 SouthamptonCruisingGothenburg, SwedenCopenhagen, DenmarkCruise Kiel CanalHamburg, GermanyAmsterdam, NetherlandsCruisingSouthamptonPMlate nightlate nightlate pmlate nightearly pmearly amearly amearly pmAMDeparts 30 November 2011 8 nights from £699 per personBalmoral L1122Take a trip to the beautiful Liseberg amusement park, GothenburgGet some unusual presents at Hamburg's Christmas marketsExplore the Dutch-designed canals in GothenburgMake the most of late departures from Gothenburg, Copenhagen and AmsterdamChristmas marketsTivoli Gardens at Christmas, Copenhagen SouthamptonHamburgGothenburgAmsterdamCopenhagenKiel CanalSails from: Portsmouth Sat 10 Sun 11 Mon 12 Tue 13 Wed 14 Thu 15 Fri 16 Sat 17 PortsmouthCruisingGothenburg, SwedenCopenhagen, DenmarkCruise Kiel CanalBremerhaven, GermanyOstende, BelgiumPortsmouthPMlate pmlate nightearly pmlate pmearly pmearly amearly amearly amAMDeparts 10 December 2011 7 nights from £599 per personBoudicca D1126A late stay in Copenhagen, perhaps take a trip to both Rosenborg Castle and Christiansborg PalaceEnjoy a panoramic tour of Gothenburg, including the Poseidon Fountain and Museum of Fine ArtsGlide through the German countryside along the world-famous Kiel CanalVisit famous German and Belgian Christmas marketsPortsmouthBremerhavenGothenburgOstendeCopenhagenKiel CanalSmooth Pop & Soul ComedyPlease also see pages 160 & 161 for details of cabin grades. D1126balcony suitesoutside twininside twinoutside singlePSMSSSBSDSJSBCABCDEFHIJB JKLMNPrices per person from £ 1,949 1,679 1,489 1,329 1,209 1,089 1,059 989 909 889 799 759 719 649 599 1,749 1,629 1,549 1,349 1,059 1,019Suitessuperior & balconyinside singleCabin gradesBalcony twinBalcony singlebalcony suitesoutside twininside twinoutside singlePSMSSSBJBABCABCDEFGHIJB JKLMNPlease also see pages 156 & 157 for details of cabin grades. ¥ Cruise & Walk Holidays must be booked directly with Ramblers Worldwide Holidays, please refer to page 21. L1122Prices per person from £ 2,279 1,969 1,669 1,479 1,259 1,249 1,159 1,069 1,039 929 899 839 809 749 699 2,049 1,809 1,579 1,529 1,349 1,169Balcony twinsuperior twininside singleCabin gradesbalcony singleCruise highlights include optional tours which are bookable from six weeks prior to departure