EC1

Economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.

*The LBG criteria, used by over 100 companies, include staff or management time, gifts in kind and certain other expenditure not defined as charitable expenditure under statutory criteria. Associate companies are excluded from the table.

 EC2

Financial implications and other risks and opportunities for the organisation's activities due to climate change.

We do not collate this data at the EU level, we therefore provide global information.

At the end of 2006, and following the publication of the Stern Report, we undertook an analysis of the potential risks posed by changes in climate over the next 10 to 20 years. Assisted by consultancy company Environmental Resources Management (ERM), the study concentrated on key leaf operations, factories and global impact areas such as direct materials supply, business travel and freight.

ERM identified 56 climate change hazards, ranging from weather related phenomena (changes in temperature, precipitation, extreme events) to regulation (levies on emissions) and established upper and lower boundaries for a "declared future" in 2020, based on available academic literature from sources such as the Stern Report and Intergovernmental Panel on Climate Change publications.

The headline outcome from this study was that climate change is likely to bring physical impacts that will affect our companies. The annual incremental costs of this could range from £50 to £100 million. The study foresaw almost no regulatory impacts.

The next phase of the analysis, to be completed in 2007, will focus on the management and mitigation of these risks.

 EC3

Coverage of the organisation's defined benefit plan obligations.

We do not collate this data at the EU level, we therefore provide global information.

The Group's subsidiary undertakings operate over 120 active retirement benefit arrangements worldwide. These arrangements have been developed in accordance with local practices in the countries concerned. The majority of scheme members belong to defined benefit schemes, most of which are funded externally, although the Group also operates a number of defined contribution schemes.

The liabilities arising in the defined benefit schemes are determined in accordance with the advice of independent, professionally qualified actuaries, using the projected unit credit method. All schemes are formally valued at least every three years.

 EC4

Significant financial assistance received from government.
Market Presence

This information is not collated globally or on an EU level.

 EC5

Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation.

We do not have a global policy on standard entry level wages and information on our individual companies' performance in this area is not collated globally nor on an EU level. We require all our companies to observe and comply with local employment laws and regulations.

 EC6

Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

We do not currently measure the proportion of spending on locally based suppliers, as this would be an extremely complex calculation. We are a global business and have contracts in place with global suppliers, although the delivery and invoicing of goods and services often takes place at a local level, making it difficult to categorise spend as "global" or "local". Our companies use the most appropriate supplier for goods and services, taking into account numerous factors such as meeting our minimum standards, capability and capacity to supply, quality, location, price, speed of delivery and various other criteria, including local regulations and social issues.

 EC7

Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.

Recruitment procedures across our companies vary but include selection interviews, assessment centres and psychometric testing, designed to identify the best fit of capability to the role. Globally, the proportion of local senior management hired in 2006 was 94 local compared to 18 non-local.

 EC8

Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.

This information is not collated globally or on an EU level.

 EC9

Understanding and describing significant indirect economic impacts, including the extent of impacts.

We do not currently measure indirect economic impacts globally.

In 2006, our company in Czech Republic and other non EU companies (Pakistan & Canada) commissioned economic impact studies.

In the Czech Republic, research was carried out by ACNielsen into the prevalence of counterfeit sales along the Czech-German border. The study concluded that in this one segment alone the Czech government lost around £24 million in lost tax revenue.

For more information about the Group's financial performance www.bat.com/annualreport