The format of our reporting has been changed to accommodate the inclusion, for the first time, of an Operating and Financial Review (OFR). In preparing the OFR, we have sought to take into account, when considered appropriate, the best practice set out in the UK Accounting Standards Board's 'Reporting Statement: Operating and Financial Review'.
We have responded to the spirit of the OFR by offering shareholders a balanced and comprehensive analysis of our current business and describing the significant industry trends that are likely to influence our future prospects. For the first time, we have published our Key Performance Indicators, some other important Business Measures and the Group's Key Risk Factors.
We have also attempted to avoid having too much information in one publication. Our corporate website bat.com has a wealth of material about the Group and, in May 2007, we plan to publish our latest Social Report, detailing progress during 2006 on a range of commitments and actions.
We will carefully consider the structure and content of our future reporting in the light of developments in the field and the advice and comments we receive about this publication.
In this combined report
This year, for the first time, British American Tobacco has produced a combined report which amalgamates the Annual Review and Summary Financial Statement together with the Directors' Report and Accounts. This combined report is the 'Annual Report and Accounts 06'. Please read the explanatory notes below.
Part 1 - Annual Review
In the review
The Annual Review and Summary Financial Statement of British American Tobacco p.l.c. for the year ended 31 December 2006 is intended for investors who do not require the full detail of the Directors' Report and Accounts, which is produced as Part 2 of this combined report. The Annual Review comprises an Operating and Financial Review and a Summary Corporate Governance Statement, Summary Remuneration Report and Summary Financial Statement.
The Operating and Financial Review has been prepared to a standard which fulfils the requirements for a business review in accordance with section 234ZZB of the Companies Act 1985, taking into account, where considered appropriate, the best practice set out in the UK Accounting Standards Board's 'Reporting Statement: Operating and Financial Review'.
The Annual Review does not contain sufficient information to allow for a full understanding of the results of the Group and state of affairs of the Company or of the Group. For further information, reference should be made to the Directors' Report and Accounts 2006 (see below) which incorporates the full accounts, the Report of the independent auditors on those accounts, the Directors' Report and the Remuneration Report. The Annual Review is issued to all shareholders.
As part of the OFR, we have produced a special feature on our Brazilian subsidiary, Souza Cruz, to highlight how our strategy is working in a key market.
Part 2 - Directors' Report and Accounts
In the report
The Directors' Report and Accounts of British American Tobacco p.l.c. for the year ended 31 December 2006 is produced as Part 2 of this combined report. By reference to the Annual Review in Part 1 above, it incorporates the Operating and Financial Review as part of the Directors' Report. The Directors' Report and Accounts is issued, as part of the combined report, to shareholders who elected to receive it together with the Annual Review.Click here to return to the Home Page