# EDGAR Filing Document

**Accession Number:** 0001303523
**File Stem:** 0001303523-26-000017
**Filing Date:** 2026-2
**Character Count:** 2333690
**Document Hash:** e164dbe2bbeaa665a893b5e0339878be
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001303523-26-000017.hdr.sgml**: 20260213

**ACCESSION NUMBER**: 0001303523-26-000017

**CONFORMED SUBMISSION TYPE**: 20-F

**PUBLIC DOCUMENT COUNT**: 356

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260213

**DATE AS OF CHANGE**: 20260213

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** British American Tobacco p.l.c.
- **CENTRAL INDEX KEY:** 0001303523
- **STANDARD INDUSTRIAL CLASSIFICATION:** CIGARETTES [2111]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 000000000

**FILING VALUES:**
- **FORM TYPE:** 20-F
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38159
- **FILM NUMBER:** 26628902

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** GLOBE HOUSE
- **STREET 2:** 4 TEMPLE PLACE
- **CITY:** LONDON
- **PROVINCE COUNTRY:** X0
- **BUSINESS PHONE:** 44-207-845-2000

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** GLOBE HOUSE
- **STREET 2:** 4 TEMPLE PLACE
- **CITY:** LONDON
- **PROVINCE COUNTRY:** X0

?xml version='1.0' encoding='ASCII'? bti-20251231

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 20-F**

**(Mark One)**

**☐REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGEACT** 

**OF 1934**

**OR**

**☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the fiscal year ended December 31, 2025**

**OR**

**☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**OR**

**☐SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACTOF** 

**1934**

**Date of event requiring this shell company report**

**For the transition period from to**

**Commission file number 001-38159**

**British American Tobacco p.l.c.**

**(Exact name of Registrant as specified in its charter)**

**(Translation of Registrant's name into English)**

**England and Wales**

**(Jurisdiction of incorporation or organization)**

**Globe House, 4 Temple Place, LondonWC2R 2PG, United Kingdom**

**(Address of principal executive offices)**

**Caroline Ferland, Company Secretary Tel: +44 (0)207845 1000**

**Fax: +44 (0)20 7240 0555**

**Globe House, 4 Temple Place, LondonWC2R 2PG, United Kingdom**

**(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)**

**Securities registered or to be registered pursuant to Section 12(b) of the Act.**

---

| | | |
|:---|:---|:---|
| **<u>Title of each class</u>** | **<u>Trading symbol(s)</u>** | **<u>Name of each exchange on which registered</u>** |
| **American Depositary Shares (evidenced by American Depositary Receipts)** | **BTI** | **New York Stock Exchange** |
| **each representing one ordinary share** |  |  |
| **Ordinary shares, nominal value 25 pence per share** | **BTI** | **New York Stock Exchange**<br> **\*** |
| **3.215% Notes due 2026** | **BTI26** | **New York Stock Exchange** |
| **1.668% Notes due 2026** | **BTI26A** | **New York Stock Exchange** |
| **3.557% Notes due 2027** | **BTI27** | **New York Stock Exchange** |
| **4.700% Notes due 2027** | **BTI27A** | **New York Stock Exchange** |
| **2.259% Notes due 2028** | **BTI28** | **New York Stock Exchange** |
| **4.448% Notes due 2028** | **BTI28A** | **New York Stock Exchange** |
| **3.462% Notes due 2029** | **BTI29** | **New York Stock Exchange** |
| **5.931% Notes due 2029** | **BTI29A** | **New York Stock Exchange** |
| **4.906% Notes due 2030** | **BTI30** | **New York Stock Exchange** |
| **6.343% Notes due 2030** | **BTI30A** | **New York Stock Exchange** |
| **2.726% Notes due 2031** | **BTI31** | **New York Stock Exchange** |
| **5.834% Notes due 2031** | **BTI31A** | **New York Stock Exchange** |
| **4.742% Notes due 2032** | **BTI32** | **New York Stock Exchange** |
| **7.750% Notes due 2032** | **BTI32A** | **New York Stock Exchange** |
| **5.350% Notes due 2032** | **BTI32B** | **New York Stock Exchange** |
| **6.421% Notes due 2033** | **BTI33** | **New York Stock Exchange** |
| **4.625% Notes due 2033** | **BTI33A** | **New York Stock Exchange** |
| **6.000% Notes due 2034** | **BTI34** | **New York Stock Exchange** |
| **5.625% Notes due 2035** | **BTI35** | **New York Stock Exchange** |
| **4.390% Notes due 2037** | **BTI37** | **New York Stock Exchange** |
| **3.734% Notes due 2040** | **BTI40** | **New York Stock Exchange** |
| **7.079% Notes due 2043** | **BTI43** | **New York Stock Exchange** |
| **4.540% Notes due 2047** | **BTI47** | **New York Stock Exchange** |
| **4.758% Notes due 2049** | **BTI49** | **New York Stock Exchange** |
| **5.282% Notes due 2050** | **BTI50** | **New York Stock Exchange** |
| **3.984% Notes due 2050** | **BTI50A** | **New York Stock Exchange** |
| **5.650% Notes due 2052** | **BTI52** | **New York Stock Exchange** |
| **7.081% Notes due 2053** | **BTI53** | **New York Stock Exchange** |
| **6.250% Notes due 2055** | **BTI55** | **New York Stock Exchange** |

---

\*Listed, not for trading, but only in connection with the listing of the applicable Registrant's American Depositary Shares issued in respect thereof.

**Securities registered or to be registered pursuant to Section 12(g) of the Act.**

**None**

**Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.**

**None**

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the Annual Report.

2,312,454,501 **ordinary shares**

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☒ Yes ☐ No

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of

1934. ☐ Yes ☒ No

Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations

under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding

12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T

(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of

"large accelerated filer," "accelerated filer," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☒ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Emerging growth company | ☐ |

---

If an emerging growth company that prepares its financial statements in accordance with US GAAP, indicate by check mark if the registrant has elected not to use the

extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ☐

† The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification

after April 5, 2012.

Indicate by check mark whether the registrant has ﬁled a report on and attestation to its management's assessment of the eﬀectiveness of its internal control over ﬁnancial

reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting ﬁrm that prepared or issued its audit report.☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the

correction of an error to previously issued financial statements.☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive based compensation received by any of the

registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

---

| | | |
|:---|:---|:---|
| US GAAP | International Financial Reporting Standards as issued by the | Other ☐ |
| ☐ | International Accounting Standards Board ☒ |  |

---

If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow. ☐ Item 17 ☐

Item 18

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

---

| | |
|:---|:---|
| Name of the auditor's firm | KPMG LLP |
| Auditors' firm ID/ PCAOB issued Audit Firm Identifier | 1118 |
| Auditors' Location – City, State/Province, Country | 15 Canada Square, London, E14 5GL |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

**Table of contents**

---

| | | |
|:---|:---|:---|
| **Section** | **Section name** | **Page** |
|  | General | 4 |
|  | Forward looking statements | 4 |
| PART I | Section |  |
| Item 1  | [Identity of directors, senior management and advisers](#ia53e6ca54d894bde98684b8ab3a259a8_5715) | N/A |
| Item 2  | [Offer statistics and expected timetable](#ia53e6ca54d894bde98684b8ab3a259a8_5735) | N/A |
| Item 3 | [Key information](#ia53e6ca54d894bde98684b8ab3a259a8_5757) | N/A |
| A  | [\[Reserved\]](#ia53e6ca54d894bde98684b8ab3a259a8_6673) | N/A |
| B  | [Capitalization and indebtedness](#ia53e6ca54d894bde98684b8ab3a259a8_6693) | N/A |
| C  | [Reasons for the offer and use of proceeds](#ia53e6ca54d894bde98684b8ab3a259a8_6712) | N/A |
| D  | [Risk factors](#ia53e6ca54d894bde98684b8ab3a259a8_5548) | [4](#ia53e6ca54d894bde98684b8ab3a259a8_5548) |
| Item 4  | Information on the company | [18](#ia53e6ca54d894bde98684b8ab3a259a8_549755819667) |
| A  | [History and development of the company](#ia53e6ca54d894bde98684b8ab3a259a8_5834) | [18](#ia53e6ca54d894bde98684b8ab3a259a8_5834) |
| B  | [Business overview](#ia53e6ca54d894bde98684b8ab3a259a8_10) | [19](#ia53e6ca54d894bde98684b8ab3a259a8_10) |
| C  | Organizational structure | [27](#ia53e6ca54d894bde98684b8ab3a259a8_1099511635253) |
| D  | Property, plant and equipment | [28](#ia53e6ca54d894bde98684b8ab3a259a8_1099511635263) |
| Item 4A  | Unresolved staff comments | N/A |
| Item 5 | [Operating and financial review and prospects](#ia53e6ca54d894bde98684b8ab3a259a8_5804) | [28](#ia53e6ca54d894bde98684b8ab3a259a8_5804) |
| A  | [Operating results](#ia53e6ca54d894bde98684b8ab3a259a8_7535) | [28](#ia53e6ca54d894bde98684b8ab3a259a8_7535) |
| B  | Liquidity and capital resources | [47](#ia53e6ca54d894bde98684b8ab3a259a8_1649267448170) |
| C  | Research and development, patents and licenses, etc. | [53](#ia53e6ca54d894bde98684b8ab3a259a8_1649267448181) |
| D  | Trend information | [54](#ia53e6ca54d894bde98684b8ab3a259a8_1649267448201) |
| E  | Critical accounting estimates | N/A |
| Item 6  | Directors, senior management and employees | [55](#ia53e6ca54d894bde98684b8ab3a259a8_549755820255) |
| A  | Directors and senior management | [55](#ia53e6ca54d894bde98684b8ab3a259a8_549755820255) |
| B  | Compensation | [61](#ia53e6ca54d894bde98684b8ab3a259a8_1099511634267) |
| C  | Board practices | [75](#ia53e6ca54d894bde98684b8ab3a259a8_549755820279) |
| D  | Employees | [82](#ia53e6ca54d894bde98684b8ab3a259a8_549755820289) |
| E  | Share ownership | [83](#ia53e6ca54d894bde98684b8ab3a259a8_549755820296) |
| F  | Disclosure of a registrant's action to recover erroneously awarded compensation | N/A |
| Item 7  | Major shareholders and related party transactions | [83](#ia53e6ca54d894bde98684b8ab3a259a8_549755820221) |
| A  | Major shareholders | [83](#ia53e6ca54d894bde98684b8ab3a259a8_549755820228) |
| B  | Related party transactions | [85](#ia53e6ca54d894bde98684b8ab3a259a8_549755820241) |
| C  | Interests of experts and counsel | N/A |
| Item 8  | Financial information | [85](#ia53e6ca54d894bde98684b8ab3a259a8_549755820200) |
| A  | Consolidated statements and other financial information | [85](#ia53e6ca54d894bde98684b8ab3a259a8_549755820207) |
| B  | Significant changes | N/A |
| Item 9  | The offer and listing | [85](#ia53e6ca54d894bde98684b8ab3a259a8_549755820150) |
| A  | Offer and listing details | [85](#ia53e6ca54d894bde98684b8ab3a259a8_549755820158) |
| B  | Plan of distribution | N/A |
| C  | Markets | [85](#ia53e6ca54d894bde98684b8ab3a259a8_549755820170) |
| D  | Selling shareholders | N/A |
| E  | Dilution | N/A |
| F  | Expenses of the issue | N/A |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | |
|:---|:---|:---|
| **Section** | **Section name** | **Page** |
| Item 10  | Additional information | [85](#ia53e6ca54d894bde98684b8ab3a259a8_549755820036) |
| A  | Share capital | N/A |
| B  | Memorandum and articles of association | [85](#ia53e6ca54d894bde98684b8ab3a259a8_549755820050) |
| C  | [Material contracts](#ia53e6ca54d894bde98684b8ab3a259a8_721) | [88](#ia53e6ca54d894bde98684b8ab3a259a8_721) |
| D  | Exchange controls | [90](#ia53e6ca54d894bde98684b8ab3a259a8_549755820075) |
| E  | Taxation | [90](#ia53e6ca54d894bde98684b8ab3a259a8_549755820082) |
| F  | Dividends and paying agents | N/A |
| G  | Statements by experts | N/A |
| H  | Documents on display | [93](#ia53e6ca54d894bde98684b8ab3a259a8_549755820128) |
| I  | Subsidiary information | N/A |
| J  | Annual report to security holders | [93](#ia53e6ca54d894bde98684b8ab3a259a8_549755820140) |
| Item 11  | Quantitative and qualitative disclosures about market risk | [93](#ia53e6ca54d894bde98684b8ab3a259a8_549755820028) |
| Item 12  | Description of securities other than equity securities | [93](#ia53e6ca54d894bde98684b8ab3a259a8_1099511633891) |
| A  | [Debt securities](#ia53e6ca54d894bde98684b8ab3a259a8_6972) | N/A |
| B  | [Warrants and rights](#ia53e6ca54d894bde98684b8ab3a259a8_6979) | N/A |
| C  | [Other securities](#ia53e6ca54d894bde98684b8ab3a259a8_6986) | N/A |
| D  | [American depositary shares](#ia53e6ca54d894bde98684b8ab3a259a8_6993) | [93](#ia53e6ca54d894bde98684b8ab3a259a8_6993) |
| PART II |  |  |
| Item 13  | Defaults, dividend arrearages and delinquencies | N/A |
| Item 14  | Material modifications to the rights of security holders and use of proceeds | N/A |
| Item 15  | Controls and procedures | [95](#ia53e6ca54d894bde98684b8ab3a259a8_1099511633866) |
| Item 16  | [Reserved] | N/A |
| Item 16A  | Audit committee financial expert | [95](#ia53e6ca54d894bde98684b8ab3a259a8_549755819879) |
| Item 16B  | Code of ethics | [95](#ia53e6ca54d894bde98684b8ab3a259a8_549755819885) |
| Item 16C  | Principal accountant fees and services | [96](#ia53e6ca54d894bde98684b8ab3a259a8_549755819898) |
| Item 16D  | Exemptions from the listing standards for audit committees | [96](#ia53e6ca54d894bde98684b8ab3a259a8_1099511633797) |
| Item 16E  | Purchases of equity securities by the issuer and affiliated purchasers | [96](#ia53e6ca54d894bde98684b8ab3a259a8_1099511633803) |
| Item 16F  | Change in registrant's certifying accountant | N/A |
| Item 16G  | Corporate governance | [97](#ia53e6ca54d894bde98684b8ab3a259a8_1099511633818) |
| Item 16H  | Mine safety disclosure | N/A |
| Item 16I  | Disclosure regarding foreign jurisdictions that prevent inspections | N/A |
| Item 16J  | Insider trading policies | [98](#ia53e6ca54d894bde98684b8ab3a259a8_1099511633845) |
| Item 16K  | Cybersecurity | [98](#ia53e6ca54d894bde98684b8ab3a259a8_1099511633855) |
| PART III |  |  |
| Item 17  | [Financial statements](#ia53e6ca54d894bde98684b8ab3a259a8_5677) | [100](#ia53e6ca54d894bde98684b8ab3a259a8_5677) |
| Item 18  | Financial statements | [100](#ia53e6ca54d894bde98684b8ab3a259a8_549755819837) |
| Item 19  | [Exhibits](#ia53e6ca54d894bde98684b8ab3a259a8_775) | [193](#ia53e6ca54d894bde98684b8ab3a259a8_775) |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

**General**

References in this Annual Report on Form 20-F 2025 (this Form 20-F) to 'British American Tobacco', 'Company', 'BAT', 'Group', 'we', 'us' and 'our'

when denoting opinion refer to British American Tobacco p.l.c. and when denoting business activity refer to British American Tobacco p.l.c. and its

subsidiaries, collectively or individually as the case may be, as well as in some circumstances those who work for them. When denoting business activity

these collective expressions are used for ease of reference only and do not imply any other relationship between British American Tobacco p.l.c. and its

subsidiaries. The companies in which British American Tobacco p.l.c. directly and indirectly has an interest are separate and distinct legal entities.

The material in this Form 20-F is not provided for product advertising, promotional or marketing purposes. This Form 20-F does not constitute and should

not be construed as constituting an offer to sell, or a solicitation of an offer to buy, any of our products. Our products are sold only in compliance with the

laws of the particular jurisdictions in which they are sold. References in this Form 20-F to information on websites, including the web address of BAT, have

been included as inactive textual references only. These websites and the information contained therein or connected thereto are not intended to be

incorporated into or to form part of the Form 20-F.

**Forward looking statements**

This document contains certain forward-looking statements, including "forward-looking" statements made within the meaning of the U.S. Private Securities

Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words or phrases such as "believe," "anticipate,"

"could," "may," "would," "should," "intend," "plan," "potential," "predict," "will," "expect," "estimate," "project," "positioned," "strategy," "outlook",

"target," "being confident" and similar expressions. These include statements regarding our intentions, beliefs or current expectations concerning, amongst

other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the economic and business circumstances occurring

from time to time in the countries and markets in which the Group operates.

In particular, these forward-looking statements include, among other statements, statements regarding the Group's future financial performance, planned

product launches and future regulatory developments and business objectives, as well as: (i) our expected gross capital expenditure in 2026; (ii) our belief

that Vuse is well-placed to benefit from stronger enforcement in the U.S. and our expectations of a promising performance of Vuse Ultra and a building

momentum with the continued roll-out of Velo Plus in the U.S.; (iii) certain statements in the Key Factors Affecting Results of Operations section; (iv)

certain statements in the Raw Materials section; (v) certain statements in the Regulation of the Group's business section; (vi) certain statements in the

Regional Review section, including the reference to positive signs of illicit disposable decline and legal industry recovery and our encouragement by the

early performance Vuse Ultra in the AME region; (vii) certain statements in the Category Review, including our expectation to continue to seek opportunities

and develop the Modern Oral category in additional markets; (viii) certain statements in the Dividends section; (ix) certain statements in the Liquidity and

capital resources section, including the Group's confidence in being able to successfully access the debt capital markets, the Group's belief that the Group has

sufficient working capital for present requirements, the Assessment as a Going Concern and the Off-Balance Sheet Arrangements and Contractual

Obligations; (x) certain statements in the Trend information section; and (xi) certain statements in the Notes on Accounts, including Accounting policies and

basis of preparation, the Group's ability to navigate regulatory change, the Group's forecast and assumptions with respect to impairment testing, the Group's

expectation to close the sale of its Cuban subsidiary and the Contingent liabilities and financial commitments sections.

All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors. It is believed that the

expectations reflected in this document are reasonable but they may be affected by a wide range of variables that could cause actual results and performance

to differ materially from those currently anticipated.

Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are uncertainties related to

the following: the impact of increased competition from illicit trade and illegal products; changes or differences in domestic or international economic or

political conditions; the impact of adverse domestic or international legislation and regulation of tobacco, New Categories and other regulation; the impact of

supply chain disruptions; adverse litigation and external investigations and dispute outcomes and the effect of such outcomes on the Group's financial

condition; the impact of significant increases or structural changes in tobacco, nicotine and New Categories related taxes; the inability to develop,

commercialise and deliver the Group's New Categories strategy; adverse decisions by domestic or international regulatory bodies, including disputed taxes,

interest and penalties; the impact of serious injury, illness or death in the workplace and those who work with the business; the ability to maintain credit

ratings and to fund the business under the current capital structure; translational and transactional foreign exchange rate exposure; direct and indirect adverse

impacts associated with climate change (both physical and transition); the ability to deliver a viable circular business model in response to global demand,

combined with increasing regulatory, stakeholder and consumer pressure; and the Group's ability to defend against Cyber & Digital actions that result in loss

of confidentiality, availability or integrity of systems and data. Further details on the principal risks that may affect the Group can be found on pages [4](#i1e8fde425f7c43e5b768493c0a2144ae_994072) to [17](#i1e8fde425f7c43e5b768493c0a2144ae_994073)

of this document.

Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. The forward-looking

statements reflect knowledge and information available at the date of preparation of this document and the Group undertakes no obligation to update or revise

these forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on

such forward-looking statements.

No statement in this document is intended to be a profit forecast and no statement in this document should be interpreted to mean that earnings per share of

BAT for the current or future financial years would necessarily match or exceed the historical published earnings per share of BAT.

All financial statements and financial information provided by or with respect to the U.S. or Reynolds American are initially prepared on the basis of U.S.

GAAP and constitute the primary financial statements or financial records of the U.S./Reynolds American. This financial information is then converted to

International Financial Reporting Standards as issued by the IASB and as adopted for use in the UK (IFRS) for the purpose of consolidation within the results

of the Group. To the extent any such financial information provided in this announcement relates to the U.S. or Reynolds American it is provided as an

explanation of, or supplement to, Reynolds American's primary U.S. GAAP based financial statements and information.

British American Tobacco p.l.c. Form 20-F 2025<br>

**PART I** 

**Item 3 - Key Information**

**Item 3. D - Risk factors**

**Business Execution and Supply Chain Risks**

**Risk: Competition from illicit trade**

**Description:** Illicit trade in the form of counterfeit products, diversion of genuine Group products, products that are smuggled illegally across borders, and

locally manufactured products, which do not comply with applicable regulations and/or in which applicable taxes are evaded, has had a significant impact

and continues to represent a significant and growing threat to the legitimate tobacco industry, including New Categories products. Factors such as increasing

levels of taxation and inflation, economic downturn and increased cost of living, lack of law enforcement, appropriate penalties and weak border control are

encouraging more adult tobacco and New Categories consumers to switch to illegal cheaper tobacco and New Categories products and are providing greater

rewards for counterfeiters and smugglers. Regulatory restrictions such as plain packaging or graphic health warnings, display bans, flavour or ingredient

restrictions and increased compliance costs further disadvantage legitimate industry participants by providing competitive advantages to illicit manufacturers

and distributors of illicit tobacco and New Categories products.

**Impact:** Illicit trade has an overall negative impact on society, deprives governments of revenues and encourages various forms of crime such as terrorism,

money laundering and human trafficking. Above all, illicit trade has an adverse effect on the Group's overall business and reputation. Illicit trade can damage

brand equity, which could undermine the Group's investment in Trade Marketing and Distribution, increase operational costs where products may become

commoditised, make it more difficult to adhere to underage prevention and decrease volumes sold. Although anti-illicit trade is an integral part of our

Standards of Business Conduct (SoBC), representing our internal commitment in the fight against illicit trade and setting out the controls all Group

companies must have in place and adhere to, it cannot prevent all instances of illicit trade.

Furthermore, counterfeit products (especially New Categories) and other illicit products could harm consumers, damages goodwill and/or the category (with

lower volumes and reduced profits), and could potentially lead to misplaced claims against BAT, further regulation and a failure to deliver our corporate

harm reduction objective. Illicit trade may also reduce the Group's ability to take price increases due to competitive pressure from cheaper illegal products.

Finally, as the Group has contractual and legislative obligations to prevent the diversion of our products into illicit channels, actual breaches of the obligations

to prevent product diversion into illicit channels have resulted, and may continue to result, in substantial fines in the forms of seizure payments and legislative

penalties (including financial penalties). Additionally, actual and perceived breaches may result in the risk of reputational damage (including negative

perceptions of our governance and our sustainability credentials) from Group products being found in illicit channels.

**Risk: Geopolitical tensions that have the potential to disrupt the Group's business in multiple markets**

**Description:** The Group's operations and financial condition are influenced by the economic and political situations in the markets and regions in which it

has operations, which are often unpredictable and outside of its control. Some markets in which the Group operates face the threat of civil unrest and can be

subject to frequent changes in regime. In others, there is a risk of terrorism, conflict, global health crisis, war, organised crime or other criminal activity. The

Group is also exposed to economic policy changes in jurisdictions in which it operates, for example state nationalisation of assets and withdrawal from

international / bilateral trade agreements including the introduction of tariffs or trade embargoes. In addition, some markets maintain trade barriers or adopt

policies that favour domestic producers, preventing or restricting the Group's sales. Given the outsourcing of certain services to third-party providers, the risk

may be amplified where such services are highly concentrated within a single country or region, increasing exposure to local geopolitical instability.

Geopolitical tensions caused by the effects of climate change and associated events, such as, but not limited to, water shortages, flooding, amplified natural

disasters and resultant disease outbreaks, land and food shortages, unemployment, and migration may also adversely impact the Group's business.

**Impact:** Deterioration of socio-economic or political conditions have led, and could in the future lead, to injury or loss of life, restricted mobility, loss of

assets and/or denial of access to BAT sites that reduce the Group's access to particular markets or may disrupt the Group's operations, such as supply chain,

or manufacturing or distribution capabilities. Such disruptions, including attacks on shipping routes in the Red Sea, may result in increased taxes and/or other

costs due to the requirement for more complex supply chain and security arrangements, the need to build new facilities or to maintain inefficient facilities, or

in a reduction of the Group's sales volume. Further, there may be reputational damage, including negative perceptions of our governance and protection of

our people and our sustainability credentials.

**Risk: Injury, illness or death in the workplace**

**Description:** The Group considers the safety of its employees and other individuals working with it as of utmost importance and fundamental concern. Loss

of life, serious injury, disability or illness to employees or individuals due to accident, geopolitical tension or other events may occur during the research,

manufacturing, distribution or retail of the Group's products.

**Impact:** Past events have led, and future events may lead to serious injuries, ill health, disability or loss of life to employees and individuals who work with

the Group. This may result in reputational damage, difficulties in recruiting and retaining staff, exposure to civil and criminal liability, prosecution and fines

and penalties. These impacts could have an adverse effect on the Group's results of operations and financial condition and have a negative impact on its

sustainability credentials.

**Risk: Disruption to the Group's or its third-party providers' digital and information technology systems, including by cyberattack, human error, or** 

**the malicious manipulation or disclosure of confidential or sensitive information**

**Description:** The Group relies on a complex and interconnected digital ecosystem, including information and digital technology (IDT) systems, to support

core business activities, such as manufacturing, distribution, marketing, customer engagement, R&D, and financial and management reporting. The Group's

operations are exposed to disruptions arising not only from internal system failures or vulnerabilities but also from outages, security breaches, or performance

issues affecting external vendors, cloud service providers, and other critical third-party technology partners. There is a risk that the digital landscape in the

Group or across its third-party providers may be compromised by intentional or unintentional actions. These include cyber-attacks, insider threats, system

misconfigurations, or human error.

The external threat landscape continues to intensify, with adversaries leveraging AI-powered tools and nation-state capabilities. The Group's own adoption of

AI technologies, whether in products, services, or supply chain operations, may further increase exposure to cyber threats and introduce new attack vectors.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Impact:** The Group's digital ecosystem is continuously under attack by third parties. The Group experiences cybersecurity threats and incidents that are

typical for organisations in the same industry of a similar size, including phishing attempts, malware activity, and unauthorised access attempts. Although as

of the date of this Form 20-F, the Group has not experienced any cybersecurity incident, including those arising from third-party provider failures, that has

materially affected our business strategy, results of operations, or financial condition, such an event could occur in the future.

Management recognises that digital and cyber threats could pose significant risks to the Group's business, reputation, financial condition, and stakeholder

trust. Any disruption to IDT systems related to the Group's operations could adversely affect its business and result in financial, legal and reputational

impacts. Any delays or failure to detect or respond to attempts to gain unauthorised access to the Group's information technology systems can lead to a loss

in confidentiality, integrity or availability of systems and/or data. Failure to comply with digital, data protection or cybersecurity regulations could result in

regulatory investigations, enforcement actions, fines, legal exposure or operational restrictions.

**Risk: Failure to meet current or future New Categories demand**

**Description:** The New Categories supply chain is a multi-tiered and complex environment with reliance on multiple factors, such as third-party suppliers'

ability to upscale production in order to meet demand while maintaining product quality, dependency on single suppliers at various points in the chain and the

Group's ability to build adequate consumables production capacity in line with product demand. The geographical spread of suppliers and customers exposes

the Group to political and economic issues such as trade wars and tariff increases, which may compromise the New Categories supply chain. Given the

developing nature of the New Categories portfolio, there is also an enhanced risk that some products may not meet product quality and safety standards or

may be subject to regulatory changes, leading to product recalls, which we have experienced in the past, or bans of certain ingredients or products (such as

the ban on menthol in our New Categories products in California) or failure of products to receive regulatory approval (such as the initial denial (currently

subject to an appeal) of a Premarket Tobacco Product Application (PMTA) for our Vuse menthol and mixed berry products in the United States). In addition,

the New Categories supply chain may be vulnerable to changes in local legislation related to liquid nicotine that could increase import duties. Furthermore,

the New Categories supply chain includes the development of sensitive trade secrets jointly with external design partners, which carries the risk of exposure

of innovations to competitors.

**Impact:** Vulnerabilities in the New Categories supply chain may impact the Group's ability to maintain supply and meet the current and future demand

requirements across the New Categories portfolio, potentially resulting in significant reputational harm and financial impact that may negatively affect the

Group's results of operations and financial condition and cause the Group to fail to deliver on its strategic growth plans. Over-forecasting has led, and may

also in the future lead,to write-offs and negatively impact working capital. The design of New Categories devices may also prevent the scaling of

commercial manufacturing, which will either restrict supply or increase the costs of production.

Further, there may be loss of investors' confidence in sustainability performance, including failure to deliver our corporate purpose of harm reduction.

In addition, changes in local legislation related to liquid nicotine import duties may increase New Categories production costs, which may increase End

Market pricing and reduce demand. Furthermore, the exposure of sensitive trade secrets can lead to competitive disadvantages and further negatively impact

the Group's results of operations and financial condition and cause the Group to fail to deliver on its strategic growth plans.

**Risk: Failure of a financial counterparty**

**Description:** The Group relies on transactions with a variety of financial counterparties to manage the Group's business and financial risks. In the event that

any of these counterparties fails, payments due from such counterparties, such as under hedging or insurance contracts, may not be recovered. In addition,

failure of a transactional banking party may lead to the loss of cash balances and disruption to payment systems provided by such counterparty, resulting in

the inability of collecting revenue and settling payment obligations.

**Impact:** The inability to recover payments due from one or more failed financial counterparties or the loss of cash balances may cause significant financial

loss and have an adverse impact on the Group's results of operations, financial condition and financial risk profile. In addition, the loss of cash balances or a

disruption to payment systems may cause disruption to the Group's ongoing operations and ability to pay its creditors and suppliers.

**Risk: Exposure to unavailability of, and price volatility in, raw materials and increased costs of employment**

**Description:** The availability and price of various commodities required in the manufacture of the Group's products fluctuate. Raw materials and other

inputs used in the Group's business, such as wood pulp and energy, are commodities that are subject to price volatility caused by numerous factors, including

inflation, political influence, introduction of new or higher tariffs or trade embargos, market fluctuations and natural disasters.

Similarly, the Group is exposed to the risk of an increase above inflation in employment costs, including due to governmental action to introduce or increase

minimum wages. Employment and health care law changes and the increase in inflation may also increase the cost of provided health care and other

employment benefits expenses.

**Impact:** Restricted availability and price volatility of commodities may result in supply shortages and unexpected increases in costs for raw materials and

packaging for the Group's products, which may affect the Group's results of operations and financial condition.

The Group has experienced some of these effects in the last several years, including higher cost of direct materials due to energy scarcity, increase in

transportation rates and commodity prices, as well as increases in utility costs, all of which have led to increases in overall cost. While inflation also caused

an increase in employment costs, this did not have a material adverse effect to the Group's profitability. However, we cannot assure that this will not be

materially affecting the Group's profitability in the future.

The Group has not always been able to, and in the future may not be able to, increase prices to offset increased costs without suffering reduced sales volume

and revenue. In the absence of compensating for increased costs through pricing, significant increases in raw material, packaging and employment costs

above inflation will impact product margins, leading to lower profits and negatively affecting the Group's results of operations and financial condition and

cause the Group to fail to deliver on its strategic growth plans.

**Risk: Failure to retain key personnel or to attract and retain skilled talent**

**Description:** The Group relies on a number of highly experienced employees with detailed knowledge of the tobacco and nicotine industry and other areas of

focus for the Group (including New Categories and Beyond Nicotine). Similarly, the Group is dependent on its ability to identify, attract, develop and retain

such qualified personnel in the future. The Group is also dependent on external hires to ensure it is equipped with the right new business-critical capabilities

and knowledge to accelerate transformation. BAT anticipates that this trend will continue and therefore the ability to continue to build awareness, increase

reach and ultimately attract the new target audience remains a primary focus.

There are shifts in the career development expectations of employees, from a traditional one company long tenure approach to a much shorter tenure focused

on critical experiences and challenges. Furthermore, broader economic and sustainability trends (e.g. Group delivery against sustainability-related ambitions,

volatility in remuneration outcomes linked to Group's share price) may impact the Group's ability to retain key employees and may increase competition for

highly talented employees. Whilst the Group is enhancing its effort on retaining critical capabilities and knowledge, building the right leadership behaviour

and organisational culture, and focusing on employee development and engagement, the retention risk of experienced employees remains an area requiring

management attention. Furthermore, if the Group were to fail to introduce appropriately leveraged and differentiated pay-for-performance for key employees,

this may exacerbate the risk of not retaining such key personnel and attracting appropriately skilled talent in the future. This may expose the Group to the risk

of not being able to conduct future succession planning successfully.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Impact:** If the Group is unable to retain its existing key employees, fails to attract and retain skilled talent in the future, critical positions may be left vacant,

resulting in a failure to retain and advance critical business knowledge required for its transformation, as well as adversely impacting the Group's results of

operations, financial condition and achieving broader business objectives, such as its sustainability ambitions.

High voluntary employee turnover may also reduce organisational performance and productivity, leading to further adverse impact on the Group's results of

operations and financial condition and cause the Group to fail to deliver on its strategic growth plans.

**Risk: Disruption to the supply chain and distribution channels**

**Description:** The Group has adopted an increasingly global approach to managing its supply chain, including distribution channels. Disruption to the Group's

supply chain may be caused by various factors, including, but not limited to, disruption to suppliers' operations or to distribution channels, and the

deterioration in the financial condition of a trading partner. Such disruption may also be caused by a cyber events, global health crises, political tensions,

wars, strikes, riots, civil commotion, major fires, severe weather conditions or other natural disasters which affect manufacturing or other facilities of the

Group's operating subsidiaries or those of their suppliers and distributors. We have experienced such disruptions in the past, including recently in Sudan and

Ukraine due to the ongoing conflicts there. In certain geographic areas where the Group operates, insurance coverage may not be obtainable on commercially

reasonable terms, if at all. Coverage may be subject to limitations, or the Group may be unable to recover damages from its insurers. The Group foresees a

heightened level of risk of disruption in our New Categories supply chain because it is multi-tiered and complex in sourcing and distribution.

Disruption may also be caused by the spread of infectious disease (such as the COVID-19 pandemic) or by a deterioration/shortage in labour or union

relations, disputes or work stoppages or other labour-related developments within the Group or its suppliers and distributors. The ongoing organisational

structure review and transition of key responsibilities to third party strategic partners also exposes BAT to new risk of disruption. In addition, the Group's

operating subsidiaries may not be able to establish or maintain relationships on favourable commercial terms with their suppliers and distributors, or at all. In

some markets, distribution of the Group's products occurs through third-party monopoly channels, often licensed by governments. The Group may be unable

to renew these third-party supplier and distribution agreements on satisfactory terms for many different reasons, including government regulations or

sustainability considerations. There are also some product categories for which the Group does not have surplus production capacity or where substitution

between different production plants is impractical and this may cause further disruption to our supply chain. Consolidation of global suppliers and certain

distributors that control large geographies may reduce the Group's availability of alternatives and negatively impact the Group's negotiating power with key

suppliers and distributors. These risks are particularly relevant in jurisdictions where the Group's manufacturing facilities are more concentrated or for certain

product categories where production is more centralised.

**Impact:** Any disruption to the Group's supply chain and distribution channels has from time to time had, and could have, an adverse effect on reputation, the

results of operations and financial conditions of the Group through failures to meet shipment demand, contract disputes, increased costs, loss of market share

and inability to reinvest into Smokeless products and support harm reduction agenda and cause the Group to fail to deliver on its strategic growth plans.

**Risk: Failure to uphold the high standard of sustainability management, performance and reporting**

**Description:** Stakeholder expectations of, and regulatory requirements for, the Group's sustainability management, performance and reporting are

continually evolving. The Group is exposed to risks arising from failure to have the appropriate internal standards, strategic plans and governance,

compliance, monitoring and reporting mechanisms in place to ensure it can identify emerging issues, meet external expectations (including sustainability

targets) and comply with applicable requirements.

**Impact:** Failure to uphold high standards of sustainability management and performance or to provide transparent and consistent reporting, in line with

applicable requirements and broader stakeholders expectations, could significantly impact the Group's reputation or compliance position, and reduce investor

confidence. Poor performance across any aspect of sustainability, such as a failure to sufficiently address climate change-related risks, expectations and

requirements, or human rights impacts across the Group's own operations and supply chain, could result in reputational damage, increased costs and

regulatory sanction, litigation, difficulty in attracting and retaining talent, or decrease in consumer demand for our products.

Current or future allegations of greenwashing and healthwashing, as a result of failure to responsibly and transparently market our products and communicate

our sustainability achievements and position, could result in reputational damage, litigation and regulatory sanction. Please refer to [note 31](#ia53e6ca54d894bde98684b8ab3a259a8_625) in Part III - Item

18 Notes on the Accounts for details of such actions applicable to the Group.

**Risk: Inability to obtain adequate supplies of tobacco leaf**

**Description:** The Group purchases significant volumes of packed leaf each year. Tobacco leaf, as any other agricultural commodity, can be impacted by a

variety of external factors. Like any other agricultural supply chain, the tobacco leaf supply chain can be particularly vulnerable to a range of challenges,

including climate change, weather-related events, such as drought, floods and other natural disasters, increasing demand for land and natural resources, rural

poverty, social inequality, child labour and ageing farmer populations. Tobacco production in certain countries is also subject to a variety of controls,

including regulation affecting farming and production control programmes, and competition for land use from other agriculture commodities. Such controls

and competition can further constrain the production of tobacco leaf, raising prices and reducing supply.

The Group recognises the above and any combination of those, as risks to our tobacco leaf supply chain.

**Impact:** Restricted availability of tobacco leaf may prevent the Group from accessing sufficient tobacco leaf that meets its volume, quality and sustainability

requirements. This could lead to an impact on the quality of the Group's products to a level that may be perceptible by consumers and may impact the

Group's ability to deliver on consumer needs. The Group's sustainability commitments may restrict the sources we can buy from, which would result in an

imbalance in supply and demand potentially causing incrementally higher tobacco prices. Higher tobacco leaf prices would result in increased raw material

costs and have an adverse effect on the Group's financial condition. The Group may also experience reputational damage from not adequately managing its

sustainability priorities like climate change, protection of natural resources, including forests, and human rights in our leaf supply chain, which may restrict

suppliers' willingness to do business with us.

**Risk: Exposure to product contamination**

**Description:** The Group may experience product contamination, whether by accident or deliberate malicious intent, during supply chain or manufacturing

processes, or may otherwise fail to comply with the Group's quality standards. The Group may also receive threats of malicious tampering.

**Impact:** Product contamination or threats of contamination may expose the Group to significant costs associated with recalling products from the market or

temporarily ceasing production. In addition, adult tobacco consumers may lose confidence in the specific brand affected by the contamination, resulting in

reputational damage and a loss of sales volume and market share. The Group could be subject to liability and costs associated with civil and criminal actions

as well as regulatory sanctions brought in connection with a contamination of the Group's products. Each of these results may in turn have an adverse effect

on the Group's results of operations, financial condition and reputation and cause the Group to fail to deliver on its strategic growth plans.

**Risk: Failure to successfully design, implement and sustain an integrated operating model and future-fit organisation**

**Description:** The Group is undertaking transformation initiatives to remain competitive and relevant in a rapidly evolving global environment. These

initiatives aim to simplify the organisation, use partners for outsourced services, enhance agility, and embed a future-fit operating model. The objective is to

improve profitability and productivity through standardisation of processes, centralised services, and technology-enabled efficiencies, while supporting

strategic priorities such as New Categories sustainable growth and Beyond Nicotine. Failure to effectively design, implement, and sustain these

organisational and operational changes, due to complexity, resource constraints, governance gaps, or resistance to change, could undermine the Group's

ability to deliver its long-term strategy.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Impact:** Failure to deliver and embed these transformation initiatives could lead to increased costs, delayed benefit realisation, operational disruption, and

reduced organisational effectiveness. This may result in employee dissatisfaction, decreased trading performance, loss of institutional knowledge and reduced

market share. Inability to develop governance process models in line with the Group'sevolving business strategy may result in the failure to achieve

sustainable multi-category long term growth including capturing additional productivity gains and achieving sustainability goals which may in turn have an

adverse effect on the Group's results of operations and financial condition.

**Risk: Inability to transition to a future-fit ERP platform**

**Description:** The Group's core transactional system, TaO (central SAP ERP system), is transitioning to SAP S/4HANA, with the clear objective of

completing this modernization by the end of 2030. This initiative is structured as a phased roll-out, so that business operations remain resilient and future-

ready throughout the process. By leveraging SAP's Fit-to-Standard approach, the Group aims to minimize customization and complexity, supporting a

seamless upgrade and alignment with the Group's digital transformation goals. The transition is designed to deliver enhanced data analytics, streamlined

operations, and a scalable platform that meets evolving business needs, with the majority of Group entities scheduled to migrate ahead of 2030.

**Impact:** Failure to successfully evolve and transition to S/4HANA in a timely manner could result in increased operational costs, technical debt, and

challenges in maintaining compliance and supporting evolving business needs. Persistent delays may impact the Group's ability to fully leverage new

capabilities, achieve real-time analytics, and deliver its strategic objectives, with potential consequences for financial performance and stakeholder

confidence. This may in turn have an adverse effect on the Group's results of operations and financial condition and cause the Group to underperform on the

delivery of its strategic growth plans.

**Risk: Failure to manage the Group's climate change-related risk**

**Description:** The Group is exposed to direct and indirect adverse impacts associated with physical climate change-related risks, across its global operations

and supply chain. Climate change may cause acute physical risks (such as more frequent and severe weather events), or chronic risks (such as those related to

longer-term shifts in climate patterns and temperatures). These impacts could lead to reductions in the supply and quality of tobacco leaf and other physical

goods and cause transport and logistics disruptions in our supply chains.

The Group may also experience adverse impacts associated with transition climate change risks, associated with the move to a low carbon economy (such as

emissions-related regulations and additional taxes applicable to its operations and its supply chain, changing markets and emerging technologies).

As climate change policy, legislation and reporting requirements further evolve, companies need to effectively identify, assess, monitor and mitigate

associated risks. Failure to do so could lead to BAT scoring lower in sustainability ratings and indices used by financial sector in making investment

decisions. Conversely, environmental policy changes in particular jurisdictions could result in a negative perception of our management of climate risk.

As consumer and customer behaviours and expectations further evolve, the Group is exposed to the risk of failing to sufficiently adapt its product portfolio

and marketing strategy in response to stakeholders' increasing sustainability expectations. Inadequate response to climate change considerations may result in

reduced demand for or rejection of the Group's products, as well as reputational damage.

**Impact:** Disruption to the Group's agricultural and/or non-agricultural supply chain or product distribution channels have had, and could have, an adverse

effect on its operations and financial condition through failures to meet product demand, contract disputes, increased costs, loss of market share and

interruption to the business and supply chain. Extreme temperatures and severe weather events could be harmful for employees, creating health and safety

risks, and affect our factories' productivity.

In recent periods, the Group experienced impacts from severe weather events. In 2023, a tornado in the U.S. caused the destruction of a stock of tobacco

leaves in a warehouse with a final loss of £8 million. The 2024 flood in the UAE caused an £11 million loss in machinery.

Consumer and customer expectations may influence their purchasing decisions and lead them to seek alternative product offerings. As consumer behaviours

evolve, the Group may fail to sufficiently adapt its product portfolio and market strategy in response to increasing expectations on climate change

considerations, potentially resulting in reduced demand for, or rejection of the Group's products.

Besides increased costs associated with climate change regulation and additional reporting obligations, non-compliance with climate change legislation

(including reporting requirements) could reduce BAT's ability to attract investors, result in reputational damage and potentially regulatory sanctions. Poor

results in sustainability ratings and indices used by the financial sector may impact investors' decisions, and thereby increase the cost of capital or negatively

impact share price.

Failure to meet current and future employees' expectations concerning the Group's actions to mitigate and adapt to climate change may negatively impact the

retention and attraction of high-quality employees.

**Risk: Failure to manage the Group's circularity risk**

**Description:** The Group is exposed to risks associated with the move towards an increasingly circular business model, driven by internal and external

factors. These include product-related regulatory risks, such as product design/disassembly requirements, market access, loss of market share, sourcing risk

and Extended Producer Responsibility (EPR) requirements.

As circular economy-related policy, legislation and reporting requirements further evolve, companies need to effectively identify, assess, monitor and

mitigate associated risks. Failure to do so could lead to BAT scoring lower in sustainability ratings and indices used by the financial sector in making

investment decisions.

As consumer and customer behaviours and expectations further evolve, the Group is exposed to the risk of failing to sufficiently adapt its product portfolio

and marketing strategy in response to stakeholders' increasing sustainability expectations. Inadequate response to product circularity considerations may

result in reduced demand for or rejection of the Group's products, as well as reputational damage.

**Impact:** Consumer and customer expectations may influence their purchasing decisions and lead them to seek alternative product offerings. An inability to

develop and commercialise products, packaging or value chain sustainability innovations in line with demand or less well than competitors (including

failures to adequately predict changes in consumer and societal behaviour and expectations and reflect them in the product portfolio) could lead to missed

commercial opportunities, under- or over-supply, loss of competitive advantage, loss of market share, unrecoverable costs and the erosion of the Group's

consumer base or brand equity. Product design decisions and the efficacy of Take-Back and consumer awareness schemes could have an impact on the

Group's EPR risks and obligations.

Non-compliance with product circularity legislation (including reporting requirements) could reduce BAT's ability to attract investors, result in reputational

damage, potentially regulatory sanctions and loss of market access. Poor results in sustainability ratings and indices used by the financial sector may impact

their investment decisions, and thereby increase the cost of capital or negatively impact share price.

Failure to meet current and future employees' expectations concerning the Group's actions to address product circularity matters may negatively impact the

retention and/or attraction of high-quality employees.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Risk: Impact of a pandemic or other global health crises on the performance of the Group**

**Description:** The Group continues to closely monitor the potential for disruption arising from pandemics, the most recent having been the coronavirus

(COVID-19) pandemic, or other global health crises. Consequences may include significant logistical challenges for employees and their ability to perform

their duties, potential loss of life or significant level of illness in the workforce, inability to deliver revenue stream and market share targets, impacting profits

and cash flows, and disruption to the supply chain and third parties being unable to deliver contractual goods and services. In addition, some countries in

which the Group operates have adopted in the past, and may adopt in the future, regulations restricting the ability to manufacture, distribute, market and sell

products during such crises.

**Impact:** The influence of COVID-19 was at that time, and the influence of future variants, other pandemics or other global health crises on the Group's

operations and financial condition is difficult to predict given the wide range of determining factors, not least the nature of the pandemic/virus, its speed of

infection, geographical scope, and duration.

The impact of a pandemic or other global health crisis on global economic activity and the nature and severity of measures adopted by governments are

numerous. The impact on the Group includes:

–Reductions or volatility in consumer demand for one or more of our products due to illness, retail closures, quarantine or other travel restrictions, health

consciousness (quitting use of tobacco and nicotine products), government restrictions, the deterioration of socio-economic conditions, economic hardship

and customer-downtrading (switching to a cheaper brand), which may impact the Group's market share.

–Disruptions to the Group's operations, such as its supply chain, or manufacturing or distribution capabilities, which may result in increased costs due to the

need for more complex supply chain arrangements, to expand existing facilities or to maintain inefficient facilities, a reduction of the Group's sales

volumes or an increase in bad debts from customers.

–Disruption to the Group's operations resulting from a significant number of the Group's employees, including employees performing key functions,

working remotely for extended periods of time or becoming ill, which may reduce the employees' efficiency and productivity and cause product

development delays, hamper new product innovation and have other adverse effects on the Group's business. This also applies to activities that are

performed by the employees of our outsourced service providers.

–Significant volatility in financial markets (including exchange rate volatility) and measures adopted by governments and central banks that further restrict

liquidity, which may limit the Group's access to funds, lead to shortages of cash and cash equivalents needed to operate the Group's business, and impact

the Group's ability to refinance its existing debt.

–Regulations restricting the ability to manufacture, distribute, market and sell products, and potentially increasing illicit trade.

–Governments seeking to increase revenues through increased corporate taxes and excise in combustible and/or New Category products, increasing the cost

and prices of our products – which could reduce volumes and margins, and/or increase illicit trade.

While some negative effects caused by COVID-19 materialised in several End Markets during the pandemic years, including reduced demand due to

temporary smoking bans, lockdown restrictions, increased border checks and change in consumer behaviours, none of these had a material effect on the

Group's overall profitability. However, all of the above factors may have material adverse effects on the Group's results of operations and financial condition

and cause the Group to fail to deliver on its strategic growth plans. The difficulty in predicting future pandemics exacerbates this risk.

**Risk: Exposure to sustained and organised reputational activism and public campaigns**

**Description:** As a global tobacco and nicotine company, the Group is exposed to the risk of coordinated activism and public campaigns, both online and

offline, by non-governmental organisations (NGOs), advocacy groups, consumers, shareholders, and other groups. These campaigns may target the Group's

operations, product portfolio (including New Categories), supply chain, or sustainability positioning, and can take the form of social media activism, protests,

adverse media coverage, or shareholder resolutions.

**Impact:** Reputational activism has the potential to influence investor confidence and share price, trigger regulatory scrutiny or legal challenges, disrupt

operations or product distribution, and harm the Group's employer brand and ability to attract talent. These outcomes could have an adverse effect on the

Group's results of operations and financial condition and cause the Group to underperform on the delivery of its strategic growth plans. The evolving nature

and intensity of activism, driven by shifting societal expectations and increased sustainability scrutiny, could damage the Group's reputation, limit

stakeholder trust, and disrupt business operations.

**Legal, Regulatory and Compliance Risks**

**Risk: Exposure to, the enactment of, proposals for, or rumours of regulation that significantly impairs the Group's ability to communicate,** 

**differentiate, market or launch its products and/or the lack of appropriate regulation for New Categories**

**Description:** The tobacco and nicotine industry is one of the most highly regulated in the world, with manufacturers required to comply with a variety of

different regulatory regimes across the globe. Most of these regulations, whether already in place or proposed, can be categorised as follows:

–Category bans: Prohibitions on the sale, import, possession, or use of specific products;

–Product Regulations: On use of ingredients, product design and attributes (e.g. nicotine limits or flavours), as well as product safety standards and product

disclosure requirements;

–Packaging and labelling: Requirements for health warnings and other government-mandated messages to be printed on packaging, as well as requirements

around pack shape, size, colour and weight or plain packaging requirements;

–Advertising and sponsorship: Partial or total bans on advertising, promotions and sponsorships for products, as well as brand stretching (the association

between a tobacco and a non-tobacco product by using the same tobacco branding on the non-tobacco product);

–Retail: Restrictions on the number of retailers and/or where tobacco and non-tobacco nicotine products can be sold, such as the types of outlets (e.g.

supermarkets, online, etc.), and restrictions on how they can be sold (e.g. above-the-counter versus below);

–Place: Bans on smoking or vaping in certain places;

–Price: Regulations which affect prices of tobacco and non-tobacco nicotine products, such as excise taxes and minimum pricing; and

–Responsibility: Obligations under Extended Producer Responsibility schemes (e.g. cigarette waste clean-up) and measures to combat illicit trade.

British American Tobacco p.l.c. Form 20-F 2025<br>

The Group recognises and supports the objectives of governments and policymakers in reducing smoking rates and the associated health impacts, as well as

the role of regulation in achieving these goals. Accordingly, we endorse tobacco and nicotine regulations that are grounded in robust evidence, tailored to

local circumstances, effectively achieve intended policy objectives, and avoid unintended consequences, such as the expansion of illegal markets. However,

there is a risk that in some areas, the evolving regulatory environment may not follow these principles due to several key factors:

–Irresponsible behaviour or marketing practices by competitors, particularly in markets where appropriate regulation is lacking, or actions that violate

existing regulations, may cause reputational harm to the industry and result in disproportionate regulation or bans.

–Pressure on governments from international organisations, agencies, tobacco control NGOs, influential national regulators, and the private sector—

including philanthropists, pharmaceutical companies, security technology firms, and social justice groups—may drive the pursuit of regulatory policies

intended to harm the tobacco and nicotine industry.

–Regulators may also have a limited understanding of New Category products and their potential role in tobacco harm reduction. Concerns about underage

access and the environmental impact of these products can further increase the risk of inappropriate regulation.

From a compliance perspective, the Group may fail to implement appropriate control measures or maintain adequate standards of compliance with regulatory

requirements or Group-internal policies. For example, in2024, we identified two incidents of non-compliance with local marketing regulations resulting in a

fine or penalty.

Insufficient information, instruction, and training in relevant areas—combined with limited awareness or understanding of applicable regulations, including

those relating not only to tobacco and nicotine but also to environmental or other technical standards—may heighten these risks. In addition, failure to

monitor, assess, and implement new or updated regulatory requirements could further exacerbate compliance challenges.

Beyond legal requirements, the Group also maintains several global policies that may impose higher obligations or standards than those mandated by local

regulatory regimes, such as commitments under the Group's Responsible Marketing Framework.

<u>Combustible Products</u>

With respect to combustible tobacco products, many of the measures outlined in the World Health Organization's Framework Convention on Tobacco

Control (FCTC) have been, or are in the process of being, implemented through national legislation across numerous markets in which the Group operates.

This includes the adoption of certain non-legally binding recommendations, such as plain packaging requirements and restrictions or bans on characterising

flavours.

The Eleventh Session of the Conference of the Parties to the WHO FCTC (COP11) took place in November 2025. Parties adopted a decision inviting

consideration of forward-looking measures beyond the current FCTC; however references to an endgame strategy and a ban on filters were removed from the

final text. Parties were also encouraged to strengthen environment-related measures covering tobacco and nicotine product components, implement "effective

tobacco tax policies" and consider voluntary increases in international financial support for FCTC implementation.

Parties were unable to reach consensus on several key areas, including Articles 9 and 10 (regulation of product contents and disclosure), harm-reduction

policy, and a Brazil-led proposal to extend the FCTC's scope to pouches and vapour products. These negotiations have been deferred until COP12.

Ahead of COP12, which is scheduled to take place in Armenia in 2027, the Secretariat has been tasked with developing a self-assessment tool for Parties,

preparing a report on liability-related policy options, and assessing the funding gap for FCTC implementation. Several Parties emphasised regulatory

sovereignty and the importance of continued dialogue on harm-reduction approaches and the role of new products.

In the U.S., the Food and Drug Administration (FDA) announced its intention to ban menthol as a characterising flavour in cigarettes. The Biden

Administration's Fall 2023 Unified Agenda anticipated issuance in March 2024 of a final rule to ban menthol as a characterising flavour in cigarettes;

however, in April 2024 the Biden Administration indicated that a final rule would take significantly more time. The current Trump Administration has

withdrawn the rule from the Office of Management and Budget and it is currently held pending the new administration's reconsideration of regulations

advanced by the Biden Administration. On 15 January 2025, in the final days of the outgoing Biden Administration, the FDA issued a proposed product

standard whereby the agency would limit nicotine level in cigarettes following a two-year effective date from publication of any final rule. Although the

Spring 2025 Unified Agenda from 4 September 2025 no longer lists the proposed rule on the Long-Term Actions list and instead designates it as

'withdrawn', there can be no assurance that this or a future Administration may re-introduce a rule to ban menthol as a characterising flavour in cigarettes.

Traditional leaders in tobacco control, such as the United Kingdom, continue to advance stringent regulatory measures. The UK's Tobacco and Vapes Bill—

where the legislative process is still ongoing—includes provisions for a generational sales ban (GSB), which would prohibit the sale of tobacco products to

individuals born after a specified year. This concept was first introduced in New Zealand but was subsequently repealed before it took effect. The Maldives

has enacted similar legislation, while the Turkish, Australian, Irish and Norwegian governments are among those reported to be evaluating comparable

measures to various degrees.

Preparations for a revised European Union (TPD) are also progressing. Should the process for a third iteration (TPD3) be initiated, it is anticipated that

discussions may encompass additional measures such as the introduction of plain packaging requirements for combustible tobacco products, among others.

<u>Smokeless Products (including New Categories)</u>

Transformative regulations, including forward-thinking policies for Smokeless products, are essential to Build a Smokeless World and deliver governments'

smoke-free ambitions.

The Group believes that the development of regulations for Smokeless products should follow the below principles:

–Be based on science and evidence and proportionate to the product's risks compared with those of combustible tobacco;

–Facilitate adult awareness of smokeless alternatives and allowing adult-only access;

–Ensure product quality, environmental sustainability, and consumer relevance;

–Enable effective enforcement.

From a global perspective, regulation continues to evolve, and public policy approaches vary significantly across jurisdictions. While some regulators have

adopted measures consistent with the principles previously described, others are considering applying the same regulatory frameworks used for combustible

tobacco products to Smokeless alternatives. A number of countries, including the Netherlands, Belgium, France and Germany, have implemented or have

passed regulations to ban Modern Oral products, either through provisions banning their sale outright, or via classification as foodstuffs, meaning their sale is

de facto prohibited. In some European countries, such as Spain and Luxembourg, authorities have sought to restrict the sale of nicotine pouches by setting

maximum nicotine limits at levels so low that the products become unsatisfying for consumers. It is considered likely that tobacco-free nicotine pouches will

be regulated at a European level as part of the next revision of the Tobacco Products Directive. It is also possible that Herbal Products for Heating could be

addressed in the TPD.

The primary drivers behind many recent regulatory initiatives targeting New Category products remain scepticism about the reduced-risk potential of

smokeless products, the prevention of underage appeal and nicotine addiction and the mitigation of environmental impacts. These concerns are frequently

cited in as reasons for legislative proposals to restrict or prohibit flavours in vapour products and, more recently, to ban disposable devices.

Regarding the U.S., and considering the risks associated with the FDA process, on 12 October 2021, the FDA issued its first Marketing Granted Orders

(MGOs) for tobacco-flavoured Vuse Solo and Vuse Solo power units. On the same date, Reynolds American companies received Marketing Denial Orders

British American Tobacco p.l.c. Form 20-F 2025<br>

(MDOs) for the flavoured (non-menthol and non-tobacco) Vuse Solo products. R. J. Reynolds Vapour Company has since secured a court-ordered stay of

these MDOs, which remains in place. While a series of MGOs for tobacco-flavoured products have been granted, including recent MGOs for Vuse Alto

"Golden" and "Rich" tobacco-flavoured Vapour products, MDOs have also been issued (and may be issued in the future) for non-tobacco flavoured

products, including menthol flavoured Vuse Alto. This reflects the risks associated with products that contain flavours outside of tobacco, which are currently

subject to court challenges. As it pertains to menthol, on 20 August 2025, the Fifth Circuit granted a joint motion to hold the case in abeyance for nine

months to allow the FDA to review a new Vuse Alto menthol PMTA, which means the stay of the MDO remaining in place for at least nine months.

However, there can be no assurance that we will ultimately be successful and receive an MGO.

In the specific case of Modern Oral products, the FDA announced the launch of a pilot programme to increase efficiency and streamline the PMTA review

process for Modern Oral products, which includes a specific subset of pending product applications from Reynolds American companies and other

manufacturers. The FDA states the pilot will feature real-time communication between FDA and applicants with the goal of providing more frequent

feedback and shorter review timeframes. However, there can be no assurance that our PMTA applications will be granted.

Finally, beyond the differing market approaches to the regulation of New Category products, the lack of harmonisation across jurisdictions presents an

additional challenge for the sector. Greater alignment in regulatory standards and the establishment of a consistent framework across markets would be

beneficial from a business perspective, supporting a more predictable, transparent, and efficient operating environment.

<u>Beyond Nicotine</u>

As the Group also looks to Beyond Nicotine products including CBD and cannabis (in connection with its investments in Organigram, Sanity Group and

Charlotte's Web), it may be subject to additional regulation and these products might not be scalable on a global basis given varying degree of regulation.

Please refer to the discussion of tobacco and nicotine regulatory regimes under which the Group's businesses operate set out from page [23](#ide5f87a436e64e08804b395e5625472a_672189).

**Impact:** Extreme regulatory measures, impacting one or more Smokeless and/or combustible tobacco and/or Beyond Nicotine products, could adversely

affect volume, revenue and profits, as a result of restrictions on the Group's ability to sell and differentiate its products or brands, leverage price, innovate,

make scientific claims, and make new market entries. In addition, new regulations and lack of standards harmonisation among markets could lead to greater

complexity, as well as higher production and compliance costs.

As an example, through the acquisition of Reynolds American Inc., the Group acquired the Newport brand, the leading menthol cigarette brand in the U.S.,

the Group's largest single market. The sales of Newport, together with the other menthol brands of the Group's operating subsidiaries, represent a significant

portion of the Group's total net sales. Any action by the FDA or any other governmental authority, including states and localities, banning or materially

restricting the use of menthol in tobacco products (such as the previously proposed FDA ban on menthol cigarettes) could have a significant negative impact

on sales volumes which would, in turn, have an adverse effect on the results of operations and financial position of the Group.

Disproportionate regulation of Smokeless products could significantly hinder our ability to deliver on our mission of Building a Smokeless World as part of

our transformative journey. Full category bans or regulations that jeopardise consumer acceptance would have a significant impact on the Group's strategy for

Smokeless products. These measures could both feed the illegal market (such as in the case of the increase in illicit single-use vapour devices in the U.S.

market) and undermine our ability to compete and develop our products profitably while encouraging consumers to switch to alternative products. As BAT

always seeks to comply with regulations, such disproportionate regulation that lacks robust enforcement measures reduces BAT's ability to compete on equal

terms with less responsible industry actors, who disregard or deliberately do not comply with local law and regulations. For example, California's 2022

flavour ban on all tobacco and nicotine products disrupted the market along with discouraging adult combustible consumers from switching to reduced-risk<sup>\*†</sup>

New Categories.

There is a risk that environmental and sustainability regulations, such as EPR schemes for cigarette manufacturers, will continue to impact New Category

products, especially if the EU EPR schemes for New Category products are picked up by more countries outside of EU. As a reflection of the real or

perceived impact of stricter regulation of our business, the Group's share price has also experienced, and could in the future experience, shocks upon the

announcement, expectation or enactment of restrictive regulation. All these effects may have an adverse effect on the Group's results of operations and

financial conditions or share price and cause the Group to fail to deliver on its strategic growth plans.

Disproportionate regulation of our combustible products not only impacts our ability to execute the Group strategy for these products, but also influences

investor sentiment in the sector and the residual value of the Company. Emerging issues such as filter bans, mandatory limits on nicotine products, and

generational sales bans can significantly affect both our current business operations and future expectations.

Finally, and considering the significant number of regulations that may apply to the Group's businesses across the world, the Group is and may in the future

be subject to claims for breach of such regulations. Government authorities (such as the FDA), organisations or even individuals may allege that our

marketing activities do not comply with the relevant laws and regulations. As such, the Group could be subject to liability and costs associated with civil and

criminal actions as well as regulatory sanctions, fines and penalties brought in connection with these allegations. Even when proven untrue, there are often

financial costs and reputational impacts in defending against such claims and allegations, including potential adverse impact on the treatment by the FDA of

the Group 's PMTAs in the U.S. Each of these results may in turn have an adverse effect on the Group's results of operations and financial condition and

cause the Group to fail to deliver on its strategic growth plans.

**Risk: Adverse implications of EU legislation on single-use plastics that will result in on-pack environmental warnings and financial implications** 

**relating to the Extended Producer Responsibility (EPR)**

**Description:** The EU adopted a Directive on single-use plastics in July 2019 (the SUP Directive) which, among other products, targets tobacco products with

filters containing plastic. The Cellulose Acetate in our filters is defined as a single-use plastic under the Directive and, as such, the Directive will have an

impact on the Group's cigarettes, filters for other tobacco products and consumables for THPs and Heated Herbal Products (HHPs) (the latter, although not a

tobacco product, has the same filter as THP, thus the Group's decision is to include it in the EPR scope).

Under the SUP Directive, the Group will be subject to (and in some cases already is subject to) EPR schemes, requiring the Group to cover the costs of

collecting, transporting, treating and cleaning-up of filters containing plastic, data gathering and reporting. The SUP Directive also imposes on tobacco

manufacturers the obligation to finance consumer awareness campaigns and to place environmental markings on packs of products with filters containing

plastic.

British American Tobacco p.l.c. Form 20-F 2025<br>

Member States had to transpose the SUP Directive into national law by 3 July 2021, with an implementation deadline of 5 January 2023 for EPR schemes. In

practice, some Member States are still late on transposition and implementation, with the practical consequence that EPR schemes will go live with several

months delays in some Member States. The European Commission was also late in its issuance of guidelines on the criteria for the costs of cleaning up litter,

which should have been issued prior to the anticipated implementation deadline for EPR schemes and in fact were only published in October 2025. This

introduced further difficulties and uncertainty in the design and setting-up of EPR schemes. When transposing the SUP Directive into national law, Member

States could decide to expand the scope of EPR systems under their respective national laws, which may expose the Group to additional regulations and

financial obligations. This is the case in France, where EPR implementation has already occurred with an expansion of the scope to include non-plastic filters

for RYO products. Proposed regulations are still being discussed in some countries, i.e. in Belgium, the Netherlands, and Romania. It is worth noting that

although the current SUP Directive has not yet been fully transposed, it is undergoing an evaluation and public consultation which was launched in Q4 2025.

This process could ultimately lead to a revision of the directive, adding another layer of uncertainty and potential financial implications. The European

Commission has announced that it will consider options for binding measures to reduce filters and seems to be seeking coherence between SUP Directive

and FCTC.

It is noted that there is a growing level of scrutiny on the use of single-use plastic across the world and a number of other markets in which the Group

operates are considering ways to restrict (or ban) the use of filters made of plastic and/or introduce EPR schemes covering other plastic elements in our

products beyond filters for traditional products and/or New Categories products.

**Impact:** The financial implications of existing and future EPR schemes will increase administrative burdens and operating costs and may have an adverse

effect on the Group's results of operations and financial condition and cause the Group to fail to deliver on its strategic growth plans. Failure to deliver

appropriate EPR schemes may lead to imposition of the schemes by the local authorities at a higher cost to the Group, adversely impacting the Group's

results of operations, financial condition and reputation.

**Risk: Exposure to litigation, regulatory action or criminal investigations on tobacco, nicotine, New Categories and other issues**

**Description:** The Group is involved in litigation related to its tobacco and nicotine products, including legal, regulatory and patent actions, proceedings and

claims, brought against it in a number of jurisdictions. Claims brought against the Group may be based on personal injury (both individual claims and class

actions), economic loss arising from the treatment of smoking and health-related diseases (such as medical recoupment claims brought by local

governments), patent infringement (please refer to the risk factor under "Product pipeline, commercialisation and Intellectual Property risks, Exposure to

risks associated with intellectual property rights, including the failure to identify, protect and prevent infringement of the Group's intellectual property rights

and potential infringement of, or the failure to retain licences to use, third-party intellectual property rights" below), negligence, strict tort liability, design

defect, failure to warn, fraud, misrepresentation, deceptive/unfair trade practices, conspiracy, medical monitoring, securities law violations and violations of

antitrust/racketeering laws. Sustainability-related litigation and regulatory action may also be brought against the Group.

Certain actions, such as those in the U.S. or the recently resolved proceedings in Canada, involve claims in the tens or hundreds of billions in sterling. The

Group is also involved in proceedings that are not directly related to its tobacco and nicotine products, including proceedings based on environmental

pollution claims.

Additional legal and regulatory actions and investigations, proceedings and claims may be brought against the Group in the future. The Group investigates,

and becomes aware of governmental authorities' investigations into, allegations of misconduct, including alleged breaches of sanctions and allegations of

corruption, at Group companies. Some of these allegations are currently being investigated. The Group cooperates with the authorities, where appropriate.

There are instances where the Group investigates or where Group companies are cooperating with relevant national competition authorities in relation to

competition law investigations and/or where the Group engages in legal proceedings at the appellate level. In addition, the Group is, and may in the future be,

subject to investigations or legal proceedings in relation to, among other things, its marketing, promotion or distribution activities in respect of its products.

As such, the Group or Group companies, could be subject to liability and costs associated with any damages, fines, or penalties brought in connection with

these investigations or legal proceedings.

**Impact:** The Group's consolidated results of operations and financial position could be materially affected by any unfavourable outcome of certain pending

or future litigation. In addition, an injunction arising from certain litigation outcomes may restrict the Group's ability to sell specific products and fail to

deliver on its strategic growth plans. The Group could be exposed to substantial liability, which may take the form of ongoing payments, such as is the case

with the State Settlement Agreements in the U.S. and the Approved Plans in Canada described below that require substantial ongoing payments by Group

subsidiary, RJRT. Whether successful or not, the costs of the Group's involvement in litigation could materially increase due to costs associated with

bringing proceedings and defending claims, which may also cause operational and strategic disruption by diverting management time away from business

matters. Liabilities and costs in connection with litigation could result in bankruptcy of one or more Group entities. For example, following a judgement in

Canada, certain of the Group's Canadian subsidiaries filed for protection under the Companies' Creditors Arrangement Act (CCAA). Although the Group's

relevant Canadian subsidiaries emerged from CCAA, subject to the Approved Plans, there can be no assurance that in the case of future judgments or

settlements of litigation the Group or Group entities will be able to emerge from such proceedings outside of bankruptcy. Moreover, the Approved Plans

require the Group's relevant Canadian subsidiaries to make substantial ongoing payments to the former plaintiffs. Any negative publicity resulting from these

claims may also adversely affect the Group's reputation or share price. Please refer to notes 24 and 31 in Part III - Item 18 Notes on the Accounts for details

of contingent liabilities respectively provisions applicable to the Group.

**Risk: Significant and/or unexpected increases or structural changes in tobacco and nicotine-related taxes**

**Description:** Tobacco and nicotine products are subject to high levels of taxation, including excise taxes, sales taxes, import duties and levies in most

markets in which the Group operates. In many of these markets, taxes are generally increasing, but the rate of increase varies between markets and between

different types of tobacco and nicotine products. Increases in, or the introduction of new, tobacco and nicotine-related taxes may be caused by a number of

factors, including fiscal pressures, health policy objectives and increased lobbying pressure from anti-tobacco advocates.

With respect to New Categories, although a common framework for regulation and taxation has yet to emerge, the manufacture, sale, packaging and

advertising of such products are increasingly being regulated and taxed.

The EU Tobacco Excise Directive is in the process of being revised. However, there is no set timetable. The EU Commission shared its proposal in July

2025. It will not, however, be agreed by the Member States and enter into force until 2028 or later.

In certain markets, specific tax measures have had a substantial impact on industry dynamics, for example, the significant excise increase and change to the

minimum retail price framework implemented in Bangladesh in January 2025.

**Impact:** Significant or unexpected increases in, or the introduction of new, tobacco-related taxes or minimum retail selling prices, changes in relative tax

rates for different tobacco and nicotine products or adjustments to excise have in the past resulted, and may in the future result, in the need for the Group to

absorb such tax increases due to limits in its ability to increase prices, an alteration in the sales mix in favour of value-for-money brands or products, or

growth in illicit trade, each of which could impact pricing, sales volume and profit for the Group's products. Significant or unexpected increases of tobacco-

related taxes could also impact the Group's ability to invest in, develop, commercialise and deliver New Category products, and to deliver the corporate

purpose of harm reduction.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Risk: Failure to comply with health and safety and environmental laws**

**Description:** The Group is subject to a variety of laws, regulations and operational standards relating to health and safety and the environment.

The Group may fail to assess certain risks and implement the right level of control measures or to maintain adequate standards of health and safety or

environmental compliance, which could cause injury, ill health, disability or loss of life to employees, contractors or members of the public, or harm to the

natural environment and local communities in which the Group operates. As a result of the outcomes of the COP26, further future regulation is anticipated as

governments look to meet their climate change ambitions.

Insufficient information, instruction and training in the relevant areas and a lack of knowledge of the existence and/or requirements of relevant regulations, or

a failure to monitor, assess and implement the requirements of new or modified legislation, may increase these risks.

**Impact:** Any failure by the Group to comply with applicable health and safety or environmental laws, or the exposure to the consequences of a perceived

failure, could result in business disruption, reputational damage, difficulties in recruiting and retaining staff, increased insurance costs, consequential losses,

the obligation to install or upgrade costly pollution control equipment, loss of value of the Group's assets, remedial costs and damages, fines and penalties as

well as civil or criminal liability. Each of these circumstances could in turn adversely impact the Group's results of operations and financial condition and

cause the Group to fail to deliver on its strategic growth plans.

**Risk: Exposure to unfavourable tax rulings**

**Description:** The Group is subject to tax laws in a variety of jurisdictions. The Group's interpretation and application of the tax laws could differ from those

of the relevant tax authority, which may subject the Group to claims for breach of such laws, including for late or incorrect filings or for misinterpretation of

rules. Tax authorities in a variety of jurisdictions, such as the Netherlands and Brazil, have assessed, and may in the future assess, the Group for historical tax

claims, including interest and penalties, arising from disputed areas of tax law. The Group is currently party to tax disputes in a number of jurisdictions, some

of which involve claims for amounts in the hundreds of millions in sterling. Please refer to [note 31](#ia53e6ca54d894bde98684b8ab3a259a8_625) in Part III - Item 18 Notes on the Accounts for details of

contingent liabilities applicable to the Group.

**Impact:** The Group's failure to comply with the relevant tax authority's interpretation and application of the tax laws could result in significant financial and

legal penalties, including the payment of additional taxes, fines and interest in the event of an unfavourable ruling by a tax authority in a disputed area, as

well as the payment of dispute costs, or in connection with settlements of such disputes. Disruption to the business could occur as a result of management's

time being diverted away from business matters. In certain cases, unfavourable outcomes may also lead to regulatory actions, such as license withdrawals,

which could disrupt production or distribution activities. Each of these results could negatively affect the Group's reputation, results of operations and

financial condition, and cause the Group to fail to deliver on its strategic growth plans.

**Risk: Exposure to potential liability under competition or antitrust laws**

**Description:** According to the Group's internal estimates, the Group is a leader by volume and/or value in certain categories in a number of countries in

which it operates and/or is one of a small number of tobacco and/or New Categories companies in certain other categories in which it operates. The Group

has had antitrust infringement decisions imposed against it in the past and is subject to ongoing investigations (please refer to [note 31](#ia53e6ca54d894bde98684b8ab3a259a8_625) in Part III - Item 18

Notes on the Accounts for details of contingent liabilities applicable to the Group). The Group may be subject to investigation, inquiry and/or litigation for

alleged abuse of its position in categories in which it has significant presence, alleged collusion/anti-competitive arrangements with other market participants,

and/or for other alleged competition law infringements and/or market features. Competition/antitrust laws continue to evolve globally with increasingly strict

enforcement.

**Impact:** Investigations (and/or litigation) for alleged violation of competition or antitrust laws, and any adverse decision as a result of such investigations

and/or litigation, may result in significant legal liability, fines, penalties, repayment orders and/or damages actions; criminal sanctions against the Group, its

officers and employees; increased costs, prohibitions on conduct of the Group's business; forced changes in business practices, forced divestment of brands

and businesses (or parts of businesses) to competitors or other buyers; director disqualifications; commercial agreements being held void; and operational and

strategic disruption (including by diverting management time away from business matters). The Group may face increased public scrutiny and the

investigation or imposition of sanctions by antitrust regulation agencies and/or courts for violations of competition regimes which may subject the Group to

reputational damage and loss of goodwill, including negative perceptions of the Group's governance and our sustainability credentials.

The occurrence of any of the above effects could in turn have an adverse effect on the Group's results of operations and financial condition and cause the

Group to fail to deliver on its strategic growth plans.

**Risk: Failure to establish and maintain adequate controls and procedures to comply with applicable securities, corporate governance and** 

**compliance regulations**

**Description:** The Group's operations are subject to a range of rules and regulations around the world. These include U.S. securities, corporate governance

and compliance laws and regulations, such as the Sarbanes-Oxley Act of 2002 and the U.S. Foreign Corrupt Practices Act of 1977, and expanding

sustainability reporting and disclosure requirements which apply to the Group's worldwide activities. While the Group continuously seeks to improve its

systems of internal controls and to remedy any weaknesses identified, there can be no assurance that the policies and procedures will be followed at all times

or effectively detect and prevent violations of applicable laws. In addition, the Group is subject to increasingly stringent reporting obligations under UK

corporate reporting regulations.

**Impact:** The increased scope and complexity of applicable regulations to which the Group is subject may lead to higher costs for compliance. Failure to

comply with laws and regulations may result in significant legal liability, fines, penalties, class action suits and/or damages actions, criminal sanctions against

the Group, its officers and employees, and damage to the Group's reputation. Non-compliance with such regulations could also lead to a loss of the Group's

listing on one or more stock exchanges or a loss of investor confidence with a subsequent reduction in share price.

**Risk: Lack of external recognition and acceptance of the foundational science and inability to effectively communicate to stakeholders about the** 

**potential health impact of our Smokeless products**

**Description:** Scientific evidence to support the harm reduction potential of Smokeless products is essential for demonstrating and communicating the risk

reduction potential of these products for adult smokers. BAT conducts rigorous science to demonstrate the potential risk reduction when smokers switch

completely to Smokeless products, and in the longer-term, epidemiological data will be required to demonstrate the health impact at population levels.

Consumer expectations and the rapid pace of innovation necessitate the evolution of the product portfolio, which requires the Group to regularly re-assess

and update the associated scientific evidence base.

Long-term epidemiological data requires decades to acquire. Therefore, the scientific data available today is by necessity shorter-term data that provides a

strong indication of the reduced-risk potential of Smokeless products relative to cigarettes. In terms of the wider Tobacco Harm Reduction strategy, there is a

risk that the long-term health impact of Smokeless products is not fully understood at this time. There is also a risk of failure to communicate the scientific

findings in a timely or effective manner. Furthermore, there are challenges on the choice of standards, controls and/or experimental design and methodology

used for demonstrating the robustness of scientific research, together with regulation limiting risk communication to consumers.

**Impact:** Inability to produce robust and externally-recognised scientific evidence to fully demonstrate and communicate the Tobacco Harm Reduction

abilities of Smokeless products in a timely manner may lead to greater regulatory restrictions or outright bans, market share reduction, fines and penalties,

reputational damage, and inability to sustain our quality growth and sustainability strategy. These potential impacts could cause the Group to fail to deliver on

its strategic growth plans and objectives.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Risk: Insufficient product stewardship and failure to comply with product regulations**

**Description:** The Group is subject to risks of safety incidents in pre-market testing or in market due to, for example, a lack of due caution and appropriate

response paid to pre-market product data, or toxicology information, inaccurate and unreliable information from suppliers and/or compromise of data or other

information through cybersecurity attacks.

The interpretation and application of regulations concerning the Group's products, such as the Tobacco and Related Products Directive (TPD2), may be

subject to debate and uncertainty. This includes uncertainty over product classifications and restrictions on advertising. In particular, with respect to the

developing category of New Categories, which has grown in size and complexity in a relatively short period of time, a consensus framework for the

interpretation and application of existing regulation has yet to emerge.

The continuously changing and evolving landscape of regulation concerning the Group's products contributes to the uncertainty surrounding interpretation

and application and creates a risk that the Group may misinterpret or fail to comply with developing regulations in the various jurisdictions in which it

operates, or becomes subject to enforcement actions from regulators. With the continuous changing of product cycle plans and expansion to new markets and

innovations, there is a risk that such changes and launches fail to comply with the relevant regulations, including pre-approval and/or pre-registration

requirements. For example, some governments have intentionally banned or are seeking to ban novel tobacco products and products containing nicotine,

while others would need to amend their existing legislation to permit their sale. Even in countries where the sale of such products is currently permitted, some

governments have adopted, or are seeking to adopt, bans on New Categories or restrictions on certain flavours.

**Impact:** The significant number of emerging regulations and the uncertainty surrounding their interpretation and application may subject the Group to claims

for breach of such regulations. Financial costs of such enforcement actions include financial penalties, product recalls and litigation costs, and entail a

significant risk of adverse publicity and damage to the Group's reputation and goodwill. In cases of consumer injury or fatality due to a consumer product

safety issue, this could also cause significant Group reputational damage, leading to a negative impact on stakeholder confidence, including consumers,

retailers, investors, and regulatory and public health organisations.

**Risk: Failure to uphold high standards of corporate behaviour, including through unintended or malicious breach of anti-bribery and anti-**

**corruption and other anti-financial crime laws**

**Description:** The Group is subject to various anti-corruption laws and regulations and other anti-financial crime laws including but not limited to those

relating to tax evasion, money laundering, terrorist financing, corporate fraud and/or the facilitation of corporate fraud and bribery (anti-corruption laws,

including the UK Proceeds of Crime Acts (POCA)). All employees of BAT, its subsidiaries and joint ventures which it controls are expected to uphold a high

standard of corporate behaviour and comply with the Group Standards of Business Conduct (SoBC) which includes a requirement to comply with anti-

corruption and other relevant Laws combating financial crime. Employees, associates, suppliers, distributors and agents are prohibited from engaging in

improper conduct to obtain or retain business or to improperly influence (directly or indirectly) a person working in an official capacity to decide in the

Group's favour. The Group's employees, contractors and service providers may fail to comply with our SoBC and/or may violate applicable anti-corruption

laws and other relevant laws combating financial crime.

The Group investigates, and becomes aware of governmental authorities' investigations into, allegations of misconduct, including allegations of corruption,

at Group companies. Some of these allegations are currently being investigated. The Group cooperates with the authorities, where appropriate. Please refer to

notes [24](#ia53e6ca54d894bde98684b8ab3a259a8_604) and[31](#ia53e6ca54d894bde98684b8ab3a259a8_625) in Part III - Item 18 Notes on the Accounts for details of contingent liabilities applicable to the Group.

**Impact:** Failure of the Group to comply with anti-corruption laws and regulations and other relevant laws combating financial crime, or to deploy and

maintain robust internal policies, procedures and controls may result, and have resulted, in significant fines and penalties (reducing the Group's ability to

reinvest in the future), a share price impact, criminal and/or civil sanctions against the Group and its officers and employees, increased costs, prohibitions or

other limitations or requirements (e.g. compliance requirements) on the conduct of the Group's business and reputational harm (including negative

perceptions of the Group's governance and our sustainability credentials), and may subject the Group to claims for breach of such regulations.

The occurrence of any of the above effects could in turn have an adverse effect on the Group's results of operations and financial condition and cause the

Group to fail to deliver on its strategic growth plans. Even when proven untrue, there are often financial costs, time demands and reputational impacts

associated with investigating and defending against such claims.

**Risk: Unexpected legislative changes to corporate income tax laws**

**Description:** The Group is subject to corporate income tax laws in the jurisdictions in which it operates. These laws frequently change on a prospective or

retroactive basis.

**Impact:** Legislative changes to corporate income tax laws and regulations may have an adverse impact on the Group's corporate income tax liabilities and

may lead to a material increase of the Group's overall tax rate - these include changes in international tax laws following the Organisation for Economic Co-

operation & Development (OECD) project on base erosion and profit shifting. This could, in turn, negatively affect the Group's results of operations and

financial such as any changes condition and cause the Group to fail to deliver on its strategic growth plans.

**Risk: Imposition of sanctions under sanctions regimes or similar international, regional or national measures**

**Description:** National, international and supra-national sanctions regimes or similar international, regional or national measures are complex and dynamic

and may affect territories in which the Group operates or third parties with which it may have commercial relationships. There may be unintended or

malicious breaches of sanctions due to inappropriate or negligent behaviour by BAT employees, contractors, customers, suppliers or service providers.

Operations in countries and territories subject to sanctions expose the Group to the risk of significant financial costs and disruption in operations that may be

difficult or impossible to predict or avoid or the activities could become commercially and/or operationally unviable. In particular, the Group has operations

in Cuba, which is subject to various sanctions in the United States. Sanctions can be imposed quickly with the possibility of further territories the Group

operates in becoming subject to sanctions at short notice.

The Group investigates, and becomes aware of governmental authorities' investigations into, allegations of misconduct, including alleged breaches of

sanctions, at Group companies. Some of these allegations are currently being investigated. The Group cooperates with the authorities, where appropriate.

In 2023, the Group reached settlement agreements with the DOJ and OFAC in the United States related to breaches of sanctions related to North Korea,

which resulted in the imposition of fines against the Group totalling US$635 million plus interest.

National, international and supra-national sanctions regimes may also affect third parties with which the Group has commercial relationships, e.g. through

their banks (including possible risk aversion to being associated with a sanctioned territory), and could lead to supply and payment chain disruptions.

Please refer to [note 31](#ia53e6ca54d894bde98684b8ab3a259a8_625) in Part III - Item 18 Notes on the Accounts for details of contingent liabilities applicable to the Group.

**Impact:** As a result of the limitations imposed by sanctions, it may become commercially and/or operationally unviable for the Group and/or its critical

business partners to operate in certain territories or execute transactions related to them and the Group may be required to exit existing operations in such

territories. The Group may also experience difficulty in sourcing materials or importing products, repatriating currency from a sanctioned country and finding

financial institutions willing to transact with it, any of which may expose the Group to increased costs. In addition, the costs of complying with sanctions may

increase as a result of new, or changes to existing, sanctions regimes.

British American Tobacco p.l.c. Form 20-F 2025<br>

In addition to the settlement agreements reached by the Group with the U.S. Department of Justice (DOJ) and U.S. Department of the Treasury, Office of

Foreign Asset Control (OFAC) in the United States, as detailed above, any other failure of the Group to comply with sanctions regimes or similar

international, regional, national or supra-national measures, or to deploy and maintain robust internal policies, procedures and controls, could result in

additional fines and penalties (reducing the Group's ability to reinvest in the future), a share price impact, criminal and/or civil sanctions against the Group

and its officers and employees, increased costs, prohibitions or other limitations or requirements (e.g. compliance requirements) on the conduct of the

Group's business, reputational harm (including negative perceptions of the Group's governance or our sustainability credentials), and damage to commercial

or banking relationships, and may subject the Group to claims for breach of such regimes or measures. Reputational harm (including negative perceptions of

the Group's governance and our sustainability credentials) may result from the Group's operations in a sanctioned country regardless of whether the Group

complies with imposed sanctions.

The occurrence of any of the above effects could in turn have an adverse effect on the Group's results of operations and financial condition and cause the

Group to fail to deliver on its strategic growth plans. Even when proven untrue, there are often financial costs, time demands and reputational impacts

associated with investigating and defending against such claims.

**Risk: Failure to uphold New Categories marketing practices**

**Description:** The regulatory landscape is constantly evolving with marketing practices being regulated differently in key New Categories markets. The

Group's marketing activities may be found to be, or alleged (including in the media) to be, non-compliant with laws and regulations, or with the Responsible

Marketing Framework (RMF) on the marketing and sale of tobacco and nicotine products to consumers e.g. in relation to age verification measures. Online

activities can also be found to be, or alleged to be, aimed at consumers in a country where such activities are not permitted.

**Impact:** The Group is, and may in the future be, subject to claims for breach of marketing practices. In particular, national authorities (such as the FDA),

organisations or even individuals may allege that our marketing activities do not comply with the relevant laws and regulations, or with our RMF. As such,

the Group could be subject to litigation, regulatory sanctions, fines and penalties brought in connection with these allegations. Even when proven untrue,

there are often financial costs and reputational impacts in defending against such claims and allegations which may ultimately also lead to stricter regulations

impacting our business.

Future breaches may lead to a loss of investor confidence in sustainability performance and inability to meet our responsible marketing focus area if our RMF

are not followed, impacting our corporate purpose of delivering harm reduction.

**Risk: Loss or misuse of personal data through a failure to comply with the European General Data Protection Regulation, the UK Data Protection** 

**Act 2018, e-Privacy laws and other privacy legislation governing the processing of personal data.**

**Description:** Personal data is a subset of data which attracts different risks and treatment under applicable law. Breaches of data privacy laws include misuse

of information which may not be confidential in nature. These include, for example, unsolicited marketing calls to a publicly available number, or using an

individual's personal data in a way which was not authorised or in a way that the individual did not reasonably expect through technologies such as online

tracking or monitoring.

Various privacy laws, including the European General Data Protection Regulation (GDPR), UK Data Protection Act 2018 (UKDPA) and e-Privacy laws,

govern the way in which organisations handle personal data of individuals (such as consumers, employees, contractors, service providers and other

authorised persons) including tracking or monitoring their online behaviour.

Unintended or malicious breaches of data privacy laws may occur through system vulnerabilities, cyber-attacks, and by inappropriate or negligent behaviour

by BAT employees, contractors, service providers or others.

Depending on the risk of harm to the individuals concerned, such breaches of data privacy laws (including mass personal data unavailability) could trigger a

formal notification to a local data protection supervisory authority. This, in turn, could subject Group companies to not only regulatory scrutiny but also

individual claims or even class action suits; and e-Privacy laws state that any misuse of consumer personal data or lack of transparency provided to

consumers on how we use their data or track their online behaviours are subject to regulatory scrutiny.

Legal requirements relating to the collection, storage, handling, and transfer of personal data continue to evolve. Following the entry into force of the GDPR

in May 2018, other jurisdictions in which the Group operates have enacted similar local legislation such as the California Consumer Privacy Act U.S. and the

"LGPD" in Brazil which further increases the risks surrounding the processing of personal data especially in the consumer space. As part of the Group's

digital transformation, and move towards a more consumer centric approach, in particular related to New Categories, this could further increase these risks as

the expectation is that the exposure to consumer data volumes will increase as well. With the emergence,and increased use in our daily operations, of new

technologies, including AI, these risks (particularly, personal data misuse in the context of automated decision making by leveraging AI) may be exacerbated.

**Impact:** Failure to comply with existing or future e-Privacy laws and privacy legislation governing the processing of personal data may adversely impact the

Group's results of operations and financial condition.

Loss or unlawful use of personal data may result in civil or criminal legal liability and prosecution by enforcement bodies, which may subject the Group to

the imposition of material fines and/or penalties and/or claims and costs associated with defending these claims (which could include class action suits

brought by consumers). The fine under the GDPR and UK data privacy laws for the most severe infringements can be up to the higher of €20 million and 4%

of the Group's worldwide annual revenue from the preceding financial year, whichever is higher. In the event of a plurality of actions, with separate

sanctionable conducts not caught by the principle of concurrence of conduct, fines can be applied alongside each other, without being a single legal

maximum applicable to the sum. The Group's officers and employees may also be subject to personal criminal sanctions in certain jurisdictions. Non-

compliance with the EU AI Act can result in fines up to EUR 35 million or 7% of a company's annual turnover. The Brazilian LGDP provides for fines up to

2% of a company's revenue in Brazil, capped at BRL 50 million per violation. Under the California CCPA, the fines for non-compliance include up to USD

7,500 per violation for intentional breaches.

Reputational damage could also potentially cause significant harm to the Group, including negative perceptions of the Group's governance and our

sustainability credentials.

Relevant data protection supervisory authority could also order certain Group legal entities to cease processing activities, which could result in a significant

operational disruption. Regulatory interest may also prompt interest from other compliance authorities/governments, leading to further regulation or

proceedings.

The occurrence of any of the above effects could in turn have an adverse effect on the Group's results of operations and financial condition and cause the

Group to fail to deliver on its strategic growth plans.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Economic and Financial Risks**

**Risk: Foreign exchange rate exposures**

**Description:** The Group's reporting currency is sterling. The Group is exposed to the risk of fluctuations in exchange rates affecting the translation of net

assets and earned profits of overseas subsidiaries into the Group's reporting currency. These translational exposures are not normally hedged.

Exposures also arise from the foreign currency denominated trading transactions undertaken by subsidiaries and dividend flows. When these exposures are

not naturally offset by opposing flows, they are generally hedged in line with internal policies. However, hedging might be constrained by factors such as

exchange controls, limited currency availability or prohibitive costs, and errors in hedging might occur. Additionally, divergence in monetary policy in

relation to interest rates across top markets can further amplify these risks.

**Impact:** During periods of heightened exchange rate volatility, the impact of exchange rates on the Group's results of operations and financial condition can

be significant. Fluctuations in exchange rates of key currencies against sterling may result in volatility in the Group's reported earnings per share, cash flow

and balance sheet. Furthermore, the dividend paid by the Group may be impacted if the payout ratio is not adjusted. Differences in translation between

earnings and net debt may also affect key ratios used by credit rating agencies to assess creditworthiness, which may have an adverse effect on the Group's

credit ratings.

In addition, volatility and/or increased costs in the Group's business due to transactional foreign exchange rate exposures may adversely affect operating

margins and profitability and attempts to increase prices, in response, could adversely impact sales volumes.

Moreover, the increased volatility observed in recent years in commodity prices, international trade policies and the fiscal backdrop of major economies, has

contributed to additional volatility of exchange rates, impacting the financial performance of the Group's subsidiaries. The global dynamic backdrop of

monetary policy actions, the inflation cycle, as well as the economic performance may also increase the exchange rate risk in the short term.

**Risk: Inability to obtain price increases and exposure to risks from excessive price increases and value chain erosion**

**Description:** Annual price increases by the Group are among the key drivers in increasing market profitability. However, the Group has in the past been, and

may in the future be, unable to obtain such price increases as a result of increased regulation; increased competition from illicit trade; stretched consumer

affordability arising from deteriorating political and economic conditions and rising prices; sharp increases or changes in excise structures; and competitors'

pricing.

As the New Categories market continues to develop, the Group may face erosion in the value chain for New Categories through lower market prices, the

imposition of excise taxes, high retail trade margins or high production costs that make New Categories less competitive versus combustible tobacco

products.

In addition, the Group faces the risk that price increases it has conducted in the past, and may conduct in the future, may be excessive and not find adequate

adult tobacco consumer acceptance.

**Impact:** If the Group is unable to obtain price increases or is adversely affected by impacts of excessive price increases, it may be unable to achieve its

strategic growth metrics, have fewer funds to invest in growth opportunities, and, in the case of excessive price increases, be faced with quicker reductions in

sales volumes than anticipated due to accelerated market decline, down-trading (switching to a cheaper brand) and increased illicit trade. These in turn impact

the Group's market share, results of operations and financial condition and cause the Group to fail to deliver on its strategic growth plans.

In addition, erosion in the value chain for New Categories could have a negative impact on the Group's sales volume or pricing for these products. High

excise could dampen demand for New Categories or result in lower profit margins. Lower market prices, high retail trade margins or increases in production

costs could also negatively impact profit margins or lead to uncompetitive pricing. This may in turn have an adverse effect on the Group's results of

operations and financial condition and cause the Group to underperform on the delivery of its strategic growth plans.

**Risk: Effects of declining consumption of legitimate tobacco products and a tough competitive environment**

**Description:** Evidence of market contraction and the growth of illicit trade of tobacco products is apparent in several key global markets in which the Group

operates. This decline is due to multiple factors, including increases in excise taxes leading to continuous above-inflation price rises, changes in the regulatory

environment, the continuing difficult economic environment in many countries impacting consumers' disposable incomes, the increase in the trade of illicit

tobacco products, rising health concerns, a decline in the social acceptability of smoking and an increase in Smokeless products uptake.

The Group competes based on the strength of its strategic brand portfolio, product quality and taste, brand recognition loyalty, innovation, trade marketing

distribution activities and price. The Group is subject to highly competitive environments in all aspects of its business, and its competitive position can be

significantly influenced by the prevailing economic climate, consumers' disposable income, regulation, competitors' introduction of lower-price or

innovative products, higher tobacco and nicotine product taxes, higher absolute prices, governmental action to increase minimum wages, employment costs,

interest rates and increase in raw material costs.

Furthermore, the Group is subject to substantial payment obligations under the MSA and the State Settlement Agreements (in the U.S.) and settlement

payments in respect of Canada, which adversely affect the ability of the Group to compete with manufacturers of deep-discount cigarettes that are not subject

to such substantial obligations.

**Impact:** Any future decline in the demand for legitimate tobacco products could have an adverse effect on the Group's results of operations and financial

conditions and cause the Group to fail to deliver on its strategic growth plans.

In a tough competitive environment, factors such as market size reduction, customer down-trading, illicit trade and competitors aggressively taking market

share through price re-positioning or price wars generally reduce the overall profit pool of the market and may impact delivery of the Group's profits. This

may also lead to a decline in sales volume, loss of market share, impact delivery of the Group's sustainability agenda, erosion of its portfolio mix and

reduction of funds available for investment in growth opportunities and may cause the Group to underperform on the delivery of its strategic growth plans.

**Risk: Funding, liquidity and interest rate risks**

**Description:** The Group cannot be certain that it will have access to bank financing or to the debt and equity capital markets at all times and is therefore

subject to funding and liquidity risks. Failure to appropriately engage with investors' and lenders' sustainability criteria and concerns may impact BAT's

credit ratings, access to funding, or may result in an increase in the cost of funding.

The Group is also exposed to rising interest rates in connection with both existing floating rate debt and future debt refinancings. Although, interest rates have

started to be cut by main Central Banks, having reached their peak after few years of intense hikes, in the attempt to tame inflation, further changes are

expected to remain highly data dependent, with inflation and labour market trends playing an important role in central banks' future actions.

Furthermore, the Group operates in several markets closely regulated by governmental bodies that intervene in foreign exchange markets by imposing

limitations on the ability to convert local currency into foreign currency and introducing other currency and capital controls that expose local currency cash

balances to devaluation risks, increase costs to obtain hard currency, or are a barrier to the repatriation of earnings. As a result, the Group's operational

entities in these markets may be restricted from using End Market cash resources to pay for imported goods, dividend remittances, interest payments and

royalties. The inability to access End Market cash resources in certain markets contributes to the Group's funding and liquidity risks.

British American Tobacco p.l.c. Form 20-F 2025<br>

Compliance with sanctions and the restrictive policies of banks to facilitate transactions that are sanctions sensitive requires the Group to transfer and use

sanctions sensitive cash in a compliant manner. Anti-money laundering legislation can also lead to additional restrictions relating to the payment and receipt

of funds for both BAT as well as its business partners. In addition, the Group's further development into the cannabis sector may lead to inaccessible proceeds

from this activity, and such activity may expose the Group to further regulatory and legal risks due to different local and international laws. The Group may

also face reputation and compliance issues due to various levels of acceptance of the cannabis sector by stakeholders which may restrict bank and/or investor

access.

**Impact:** Adverse developments in the Group's funding, liquidity and interest rate environment may lead to shortages of cash and cash equivalents needed to

operate the Group's business and to refinance its existing debt. Inability to fund the business under the Group's current capital structure, failure to access

funding and foreign exchange or increases in interest rates may also have an adverse effect on the Group's credit rating, which would in turn result in further

increased funding costs and may require the Group to issue equity or seek new sources of capital. Although the Group currently benefits from investment

grade ratings from Moody's, S&P and Fitch, any adverse impact in the activity may trigger a rating revision. Any downgrade of the Group's credit ratings or

loss of investment grade status could materially increase the Group's financing costs.

All these factors may have material adverse effects on the Group's results of operations and financial conditions and cause the Group to fail to deliver on its

strategic growth plans. These conditions could also lead to underperforming bond prices and increased yields.

In the case of funding or liquidity constraints, the Group may also suffer reputational damage due to its perceived failure to manage the financial risk profile

of its business, which may result in an erosion of shareholder value reflected in an underperforming share price, and/or underperforming bond prices and

higher yields. In addition, the Group's ability to finance strategic opportunities or respond to threats may be impacted by limited access to funds.

**Risk: Failure to achieve growth through mergers, acquisitions, joint ventures, investments and other transactions**

**Description:** The Group's growth strategy includes a combination of organic growth as well as mergers, acquisitions, joint ventures, investments and other

business combinations. The Group may be unable to acquire or invest in attractive businesses on favourable terms and may inappropriately value or

otherwise fail to identify or capitalise on growth opportunities. The Group may not be able to deliver strategic objectives and growth improvements from

business combinations, successfully integrate businesses it acquires or establishes, or obtain appropriate regulatory approvals for business combinations.

Risks from integration of businesses also include the risk that the integration may divert the Group's focus and resources from its other strategic goals.

Furthermore, transactions may include risks associated with an unpredictable regulatory landscape, such as bans or more restrictive regulations which come

into force after the acquisition.

Additionally, the Group could be exposed to financial, legal or reputational risks if it fails to appropriately consider and address any compliance, antitrust or

sustainability aspects of a transaction or planned transaction. Further, the Group has certain uncapped indemnification obligations in connection with

divestitures and could incur similar obligations in the future.

**Impact:** Any of the foregoing risks could result in increased costs, decreased revenues or a loss of opportunities and have an adverse effect on the Group's

results of operations and financial condition, and in the case of a breach of compliance, product regulation or antitrust regulation, could lead to reputational

damage, fines and potentially criminal sanctions and an adverse impact on the Group's sustainability priorities. This may impact the Group's ability to

compete in the long-term.

Inability to execute planned divestments, or poorly executed or delayed divestments, may not deliver fair value, or may result in loss of potential sale

proceeds resulting in fewer resources to drive quality growth or meet other corporate targets.

The Group may become liable for claims arising in respect of conduct prior to any merger or acquisition of businesses if deemed to be a successor to the

liabilities of the acquired company or indemnification claims relating to divestitures, and any resulting adverse judgment against the Group may adversely

affect its results of operations and financial condition and cause the Group to fail to deliver on its strategic growth plans. Please refer to [note 31](#ia53e6ca54d894bde98684b8ab3a259a8_625) in Part III -

Item 18 Notes on the Accounts for details of contingent liabilities applicable to the Group.

**Risk: Unforeseen underperformance in key global markets**

**Description:** A substantial majority of the Group's profit from operations is based on its operations in certain top markets, including the U.S. A number of

these markets are declining for a variety of factors, including price increases, restrictions on marketing activities and promotions, smoking prevention

campaigns, increased pressure from anti-tobacco groups, accelerated migration to reduced-risk products and increasing prevalence of non-compliant New

Categories competitors.

Alongside external pressures, operational risks can intensify the situation. Examples include the concentration and consolidation of distribution into a single

trade partner, and inaccuracies in demand forecasting that lead to write-offs across both traditional and New Categories products.

Economic and political factors affecting the Group's key markets include the prevailing economic climate, governmental austerity measures, levels of

employment, inflation, governmental action to increase minimum wages, employment costs, interest rates, raw material costs, consumer confidence and

consumer pricing.

**Impact:** Operational disruptions, failure of a key trade partner or inaccurate forecasts may lead to product shortages, excess inventory, or lost market

opportunities. Change to the economic and political factors in any of the top markets in which the Group operates often affect consumer behaviour and have

an impact on the Group's results of operations and financial condition. These could cause the Group to fail to deliver on its strategic growth plans and reduce

its capacity to reinvest in innovation and harm reduction initiatives.

**Risk: Increases in net liabilities under the Group's retirement benefit schemes**

**Description:** The Group currently maintains and contributes to defined benefit pension plans and other post-retirement benefit plans that cover various

categories of employees and retirees worldwide. Although the Group has made significant progress in recent years to de-risk pension and post-retirement

benefit plans, the Group's obligations to make contributions under the residual arrangements may increase in the case of increases in pension liabilities,

decreases in asset returns, salary increases, inflation, decreases in long-term interest rates, increases in life expectancies, changes in population trends and

other actuarial assumptions.

Please refer to the information under the caption 'Retirement benefit schemes' note 1 on page [111](#i2fc49dfd3b944dcfbe3216ce718f72d2_37660) and to [note 15](#ia53e6ca54d894bde98684b8ab3a259a8_577) in Part - III Item 18 Notes on the Accounts

for details of the Group's retirement benefit schemes.

**Impact:** Higher contributions to the Group's retirement benefit schemes could have an adverse impact on the Group's results of operations, financial

condition and ability to raise funds and cause the Group to fail to deliver on its strategic growth plans.

**Product pipeline, commercialisation and Intellectual Property risks**

**Risk: Inability to predict consumers' changing behaviours and launch innovative products that offer adult tobacco and nicotine consumers** 

**meaningful value-added differentiation**

**Description:** The Group focuses its research and development activities on both creating new products, including New Categories and Beyond Nicotine

products, whilst maintaining and improving the quality of its existing products. In a competitive market, the Group believes that innovation is key to growth.

The Group considers that one of its key challenges in the medium and long term is to provide adult tobacco and nicotine consumers with high-quality

products that take into account their changing preferences and expectations, including those in relation to sustainability, while complying with evolving

regulation.

British American Tobacco p.l.c. Form 20-F 2025<br>

Predicting consumers' changing needs and behaviours across categories is a critical requirement for the Group's development. The Group is exposed to the

risk it may fail to predict consumers' changing needs and behaviours across categories and fail to deliver its strategy effectively.

The Group continues to develop and roll out its New Categories portfolio which, requires significant investment. The Group is exposed to the risk that it may

be unsuccessful in developing and launching innovative products or maintaining and improving the quality of existing products across combustibles, New

Categories and Beyond Nicotine that offer consumers meaningful value-added differentiation. The Group must keep pace with innovation in its sector and

changes in consumer expectations. The Group is also exposed to the risk of an inability to build sufficiently strong brand equity through social media and

other digital tools to successfully compete. There are potential bans and restrictions in key markets on using social media to advertise and communicate and

further such bans or restrictions could be enacted in the future. Competitors may be more successful in predicting changing consumer behaviour or better able

to develop and roll out consumer-relevant products and may be able to do so more quickly and at a lower cost.

In addition, the Group devotes considerable resources to the research and development of innovative products that may have the potential to reduce the risks

of smoking-related diseases. The complex nature of research and development programmes necessary to satisfy emerging regulatory and scientific

requirements creates a substantial risk that these programmes will fail to demonstrate health-related claims regarding New Categories and Beyond Nicotine

or to achieve adult tobacco consumer, regulatory and scientific acceptance.

Furthermore, the regulatory environment impacting non-combustible tobacco products, Vapour products and other non-tobacco nicotine products and

Beyond Nicotine, including classification of products for regulatory and excise purposes, is still developing and it cannot be predicted whether regulations

will permit the marketing (freely or with certain restrictions) of such products in any given market in the future. Categorisation as medicines, for example,

and restrictions on advertising could stifle innovation, increase complexity and costs and significantly undermine the commercial viability of these products.

Alternatively, categorisation of any New Categories, as tobacco products for instance, could result in the application of onerous regulation, which could

further stifle uptake.

**Impact:** The inability to timely develop and roll out innovations or products in line with consumer demand, including any failure to predict changes in adult

tobacco consumer and societal behaviour and expectations and to fill gaps in the product portfolio, as well as the risk of poor product quality, could lead to

missed opportunities, under- or over-supply, loss of competitive advantage, unrecoverable costs and/or the erosion of the Group's consumer base or brand

equity.

Restrictions on packaging and labelling or on promotion and advertising could impact the Group's ability to communicate its innovations and product

differences to adult tobacco consumers, leading to unsuccessful product launches. An inability to provide robust scientific results sufficient to substantiate

health-related product claims poses a significant threat to the ability to launch innovative products and comply with emerging regulatory and legal regimes.

The occurrence of any of the above effects could in turn have an adverse effect on the Group's results of operations and financial condition and cause the

Group to fail to deliver on its strategic growth plans.

In addition, there may be loss of investors' confidence in sustainability performance, including failure to deliver our corporate purpose of harm reduction.

**Risk: Exposure to risks associated with intellectual property rights, including the failure to identify, protect and prevent infringement of the** 

**Group's intellectual property rights and potential infringement of, or the failure to retain licences to use, third-party intellectual property rights**

**Description:** The Group relies on trademarks, patents, registered designs, copyrights, domain names and trade secrets. The brand names under which the

Group's products are sold are key assets of its business. The protection and maintenance of these brand names and of the reputation of these brands is

important to the Group's success. Protection of intellectual property rights is also important in connection with the Group's innovative products, including

New Categories.

The Group is exposed to the risk of infringements of its intellectual property rights by third parties due to limitations in judicial protection, failure to identify,

protect and register its innovations and/or inadequate enforceability of these rights in some markets in which the Group operates.

The Group currently is, and has in the past been, involved in various patent infringement litigation proceedings in the U.S. related to the Group's Vapour

products. In 2024, a Group subsidiary entered into a settlement agreement with an indirect wholly-owned subsidiary of Philip Morris International Inc.

(PMI). Pursuant to this agreement (the Settlement Agreement), among other things, both parties agreed to dismiss certain pending legal proceedings between

the parties and certain of their affiliates concerning certain Vapour and Heated Products (HP) with prejudice and without admission of liability, to fully and

finally discharge without admission of liability any injunctions granted to the parties and their respective affiliates in such proceedings, and mutually release

each other from presently known and past, present and future claims arising out of or relating to, among other things, such proceedings, the infringement of

the patents at issue in the proceedings and certain intellectual property rights relating to certain products existing on or before a specified date. The parties

also agreed to covenants not to sue, on a perpetual, royalty-bearing or royalty-free basis, as the case may be, in respect of patents associated with certain

existing or changed Vapour or HP products. Please refer to note 31 in Part III - Item 18 Notes on the Accounts for details of contingent liabilities relating to

patent litigation and related settlements applicable to the Group and the "Settlement Agreement between Nicoventures Trading Limited and Philip Morris

Products S.A." described under Item 10.C. on page [89](#i3ee61debccc54d08a6b8f575c1383d0f_107140).

Some brands and trademarks under which the Group's products are sold are licensed for a fixed period of time in certain markets. If any of these licences are

terminated or not renewed after the end of the applicable term, the Group would no longer have the right to use, and to sell products under, those brand(s) and

trademark(s).

In addition, as third party rights are not always identifiable, the Group may be subject to claims for infringement of third party intellectual property rights.

**Impact:** Any erosion in the value of the Group's brands or innovations, or failure to obtain or maintain adequate protection of intellectual property rights for

any reason, or the loss of brands, trademarks or other intellectual property rights under licence to Group companies, may have a material adverse effect on the

Group's market share, results of operations and financial condition. Any inability to appropriately protect the Group's products and key innovations will also

limit its growth and affect competitiveness and return on innovation investment.

Any infringement of third-party intellectual property rights could result in interim or final injunctions, product recalls, legal liability and the payment of

damages, any of which may disrupt operations, negatively impact the Group's reputation and have an adverse effect on its results of operations and financial

condition and cause the Group to fail to deliver on its strategic growth plan. Litigation (even where successful) results in an intensive use of resources and

management time leading to potential disruption. In addition, although intellectual property-related settlements, such as the 2024 settlement agreement with

Philip Morris Products S.A., allow the Group to focus on developing innovative product solutions, they could also have an adverse effect on the Group's

results of operations and financial condition. For example, the payment of royalties would create higher costs for the Group, whereas the grant of licenses

and/or covenants not to sue could result in a competitive advantage of the Group's competitors which, in turn, could result in lower demand for the Group's

own products and cause the Group to fail to deliver on its strategic growth plans.

\*Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.

†Products sold in the U.S., including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Item 4 - Information on the Company**

**Item 4. A - History and development of the company**

**Corporate Information**

The Company is a public limited company incorporated under the name of British American Tobacco p.l.c. and is registered in England and Wales under

registered number 3407696. It was incorporated in July 1997 under the laws of England and Wales as a public limited company and is domiciled in the

United Kingdom. Its registered office is at Globe House, 4, Temple Place, WC2R 2PG, London. Telephone: +44 (0)20 7845 1000.

The Company's agent for service in the U.S. for the purposes of the registration statements on Form F-3 (registration no. 333-288448) is Puglisi &

Associates, 850 Library Avenue, Suite 204, Newark, Delaware 19711 U.S. The U.S. Securities and Exchange Commission (the SEC) maintains an internet

site that contains BAT's reports and other information (for example, BAT's Form 20-F and other documents) filed electronically with the SEC. BAT's SEC

filings are available to the public at the SEC's website, http://www.sec.gov. BAT's Form 20-F is also available on BAT's website, http://www.bat.com.

**History and Development of the Group**

The Group has had a significant global presence in the tobacco industry for over 100 years. BAT Ltd. was incorporated in 1902, when the Imperial Tobacco

Company and the American Tobacco Company agreed to form a joint venture company. BAT Ltd. inherited companies and quickly expanded into major

markets, including India, Ceylon, Egypt, Malaya, Northern Europe and East Africa. In 1927, BAT Ltd. expanded into the U.S. market through its acquisition

of B&W.

During the 1960s, 1970s and 1980s, the Group diversified its business under the umbrella of B.A.T Industries p.l.c., with acquisitions in the paper, cosmetics,

retail and financial services industries, among others. Various business reorganisations followed as the business was eventually refocused on the Group's

core cigarette, cigars and tobacco products businesses with BAT becoming a separately listed entity on the LSE in 1998.

The following is a summary of the significant mergers, acquisitions and disposals undertaken since 1998:

–1999 – global merger with Rothmans International;

–2000 – acquisition of Imperial Tobacco Canada;

–2003 – acquisition of Ente Tabacchi Italiani S.p.A., Italy's state-owned tobacco company, Tabacalera Nacional in Peru and Duvanska Industrija Vranje in

Serbia;

–2004 – the U.S. assets, liabilities and operations, other than certain specified assets and liabilities, of BAT's wholly-owned subsidiary, B&W, were

combined with RJR Tobacco Company to form Reynolds American Inc. As a result of the B&W business combination, B&W acquired beneficial

ownership of approximately 42% of the Reynolds American Inc. shares;

–2008 – acquisition of Tekel, the Turkish state-owned tobacco company and the cigarette and snus business of Skandinavisk Tobakskompagni A/S;

–2009 – acquisition of an effective 99% interest in Bentoel in Indonesia;

–2011 – acquisition of Protabaco in Colombia;

–2012 – acquisition of CN Creative Limited in the UK;

–2013 – entered into joint operations in China and paved the way for the Group Transformation launching our first Vapour product;

–2015 – acquisition of the shares not already owned by the Group in Souza Cruz in Brazil, and the acquisitions of the CHIC Group in Poland, and TDR

d.o.o., a cigarette manufacturer in Central Europe. Also in 2015, the Group increased its investment in Reynolds American Inc. by US$4.7 billion to

maintain the Group's approximate 42% equity position following Reynolds American Inc.'s purchase of Lorillard Inc.;

–2016 – acquisition of Ten Motives in the UK;

–2017 – acquisition of the remaining 57.8% of Reynolds American Inc. the Group did not already own. Following completion of the acquisition, Reynolds

American Inc. became an indirect, wholly-owned subsidiary of BAT and is no longer a publicly-held corporation. In 2017, the Group also acquired certain

tobacco assets from Bulgartabac Holding AD in Bulgaria and Fabrika Duhana Sarajevo (FDS) in Bosnia, acquired Winnington Holdings AB in Sweden

and acquired certain assets from Must Have Limited in the UK, including the electronic cigarette brand ViP;

–2018 – acquisition of Quantus Beteiligungs-und Beratungsgesellschaft mbH in Germany;

–2019 – acquisition of Twisp Proprietary Limited in South Africa and 60% of VapeWild Holdings LLC in the U.S.;

–2020 – acquisition of the nicotine pouch product assets of Dryft Sciences, LLC (Dryft) in the U.S. and the acquisition of Eastern Tobacco Company for

Trading in Saudi Arabia;

–2021 – entry into a strategic research and product development collaboration agreement with Organigram Inc., a licensed producer of cannabis and

cannabis-derived products in Canada and a wholly-owned subsidiary of publicly-traded Organigram Global Inc. (formerly known as Organigram Holdings

Inc.)and acquisition of a 19.9% equity stake in Organigram Global Inc.Also in 2021, the Group disposed of its Iranian subsidiary, BAT Pars Company

PJSC;

–2022 – acquisition of a 16% equity stake in Sanity Group GmbH, a German cannabis company. In 2022, the Group also made an investment, via a

convertible debenture in the amount of c.£48 million, into Charlotte's Web Holdings, Inc., a U.S.-based hemp extract wellness products business;

–2023 – disposal of the Group's businesses in Russia and Belarus;

–2024 – partial sale of the Group's investment in ITC Ltd (ITC) in India, after which the Group's shareholding reduced to 25.45%. Also in 2024, further

investments in Organigram Global Inc. in Canada, increased the Group's equity stake to c. 30.6%, and the acquisition of Beni Oral Nicotine LLC in the

U.S.; and

–2025 – further partial sale of the Group's investment in ITC, after which the Group's shareholding reduced to 22.91%. Following the demerger of ITC's

hotel business (ITC Hotels), that was completed on 1 January 2025, the Group recognised an initial direct stake in ITC Hotels of 15% as a non-current

investment on the balance sheet held at fair value through Other Comprehensive Income. In December 2025, the Group sold 9% of ITC Hotels in a block

trade with the retained direct stake reduced to 6.3%. Please refer to note 18 in Part III - Item 18 Notes on the Accounts. Also in 2025, the Group settled

historical litigation in Canada (please refer to note [24](#ia53e6ca54d894bde98684b8ab3a259a8_604) in Part III - Item 18 Notes on the Accounts). The Group also concluded the final tranche of

investment in Organigram, increasing the equity stake to 36.8%, restricted to 30% voting rights (please refer to note [14](#ia53e6ca54d894bde98684b8ab3a259a8_574) in Part III - Item 18 Notes on the

Accounts.

Since the launch of our first Vapour product in 2013, we have been on a transformation journey to become a truly multi-category consumer products

business. We are creating new Smokeless products that encourage adult smokers, who would otherwise continue to smoke, to switch to scientifically-

substantiated, reduced-risk<sup>\*</sup><sup>†</sup>alternative.

**Principal Capital Expenditures and Divestitures** 

British American Tobacco p.l.c. Form 20-F 2025<br>

Gross capital expenditures include purchases of property, plant and equipment and purchases of certain intangibles. The Group's gross capital expenditures

for 2025, 2024 and 2023 were £648 million, £581 million and £541 million, respectively, representing investment in the Group's global operational

infrastructure (including, but not limited to, the manufacturing network, trade marketing and IT systems).In 2025, this included £8 million of investments in

energy efficiency and renewable energy generation, water recycling and efficiency projects, waste reduction, and product innovation-led specification

improvements to enhance technical recyclability as part of our sustainability commitments (2024: £30 million).

We will continue to proactively assess the performance of our assets to ensure value is maximised through operational returns or through disposal. In 2026,

the Group expects to invest around £750 million of gross capital expenditure to enhance our growth opportunities and deliver operational efficiencies,

representing the ongoing investment in the Group's operational infrastructure (as described above), including the continued investment in New Categories

across the Group. This is expected to be funded by the Group's cash flows and existing facilities.

In addition, as part of our transformation, we invest in the Wellbeing and Stimulation space and through our venturing unit, Btomorrow Ventures, and in the

cannabis space, including in Organigram.

In 2025, we partially monetized our investment in ITC for £1,052 millionin net proceeds. In 2024, a similar partial sale of our investment in ITC resulted in

net proceeds of £1,577 million. In 2025, following the demerger of ITC Hotelsthat was completed on 1 January 2025, the Group recognised an initial direct

stake in ITC Hotels of approximately 15% as a non-current investment on the balance sheet held at fair value through Other Comprehensive Income. In

December 2025, the Group sold 9% of ITC Hotels in a block trade, realising net proceeds of £318 million, with the retained direct stake reduced to 6.3%. In

2023, we sold our businesses in Russia and Belarus for net proceeds in the amount of £266 million.

For more information related to the most recent business developments and property, plant and equipment, please refer to notes [13](#ia53e6ca54d894bde98684b8ab3a259a8_571), [14](#ia53e6ca54d894bde98684b8ab3a259a8_574) and [27](#ia53e6ca54d894bde98684b8ab3a259a8_613) in Part III -

Item 18 Notes on the Accounts.

**Item 4. B - Business Overview**

**Overview**

British American Tobacco p.l.c. is the parent holding company of the Group, a leading multi-category consumer goods business that provides tobacco and

nicotine products to millions of adult consumers around the world.

The Group, excluding the Group's associated undertakings, is organised into three regions:

– The U.S.;

–Americas and Europe (AME), comprising markets operating in Europe, Latin America and Canada; and

–Asia-Pacific, Middle East and Africa (APMEA), comprising markets operating in Asia-Pacific, Middle East, Central Asia, Caucasus and Africa.

The Group's range of combustible products covers all segments, from value-for-money to premium, with a portfolio of international, regional and local

tobacco brands to meet a broad array of adult tobacco consumer preferences wherever the Group operates.

The Group has also built a portfolio of smokeless tobacco and nicotine products – including Vapour products, Heated Products (HPs) and Modern Oral

products, which are collectively termed the New Categories, as well as Traditional Oral products.

The Group manages a globally-integrated supply chain and its products are distributed to retail outlets worldwide.

**Multi-Category Portfolio**

BAT is a consumer-focused business operating internationally. Our portfolio reflects our commitment to meeting the evolving and varied preferences of

today's adult consumers.

---

| | | |
|:---|:---|:---|
| **Category** | **2025 Revenue** | **% of total revenue** |
| New Categories | £3,621m | 14.1% |
| Traditional Oral | £1,043m | 4.1% |
| Combustibles | £20,201m | 78.9% |
| Other | £745m | 2.9% |
| **Total** | **£25,610m** | **100.0%** |

---

For a breakdown of total revenues by category of activity for the financial years 2025, 2024 and2023, see note [2](#ia53e6ca54d894bde98684b8ab3a259a8_538) in Part III - Item 18 Notes on the Accounts.

**Smokeless products**

Our smokeless portfolio comprises all brands within New Categories (Vapour, Heated Products and Modern Oral) and the strategic Traditional Oral brands

in moist and snus.

**Vapour**

Vapour products contain an e-liquid, nicotine and flavours, and a battery-powered heating element. When activated, via puff or button, the heating element

heats the liquid and forms an aerosol, commonly known as vapour.

Vuse, our global Vapour brand, is the #1 brand in the category (in rechargeable closed system consumables and disposables in tracked channels). It

provides cigarette smokers, who would otherwise continue to smoke, with the opportunity to transition to smokeless alternatives<sup>\*†</sup>.

Vapour revenue was down 10.4% to £1,542 million in 2025, largely driven by the continued proliferation of illegal single-use vapour products in the U.S.

and Canada, and the Group exiting the category in a number of APMEA markets. However, there are encouraging signs for Vuse in the U.S. with the

brand back to revenue growth in the second half of 2025 (compared to the first half of 2025 and full year 2024) – supported by increased enforcement

against illicit single-use vapour products at a Federal and State level.

Our new premium innovation, Vuse Ultra, offers adult consumers a differentiated, connected and personalised experience with a modern and stylish device.

We are encouraged by the early performance of Vuse Ultra in Canada, Germany and France.

As of the date of this Form 20-F, our Vapour brands are currently available in 57 markets.

\*Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.

†Products sold in the U.S., including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.

**Heated Products**

Heated Products (HPs) have two main functional parts: a battery-powered device and a consumable, which contains a plant-based (tobacco leaf or non-

tobacco leaf) substance that is heated, not burned. Once the consumable has reached a certain temperature, it forms an aerosol releasing nicotine and flavours.

British American Tobacco p.l.c. Form 20-F 2025<br>

Our flagship Heated Product brand, glo, offers an alternative to smoking that doesn't involve burning and, following scientific studies, produces lower levels

of certain toxicants than cigarettes.

Revenue for the category was down by 0.7%, due to a translational foreign exchange headwind of 1.7%. On a constant currency basis, revenue was up 1.0%.

While growth in the category has been impacted by competitive pressure, momentum is building with the roll-out of glo Hilo in our largest profit pools.

glo Hilo and glo Hilo Plus are our new premium connected devices which provide adult consumers with superior dual-heating technology and an integrated

display, combined with a new consumables range, Virto and tobacco-free Rivo. We have continued the roll-out through 2025, with launches in Japan, Poland

and Italy.

As of the date of this Form 20-F, following a reassessment of our geographic footprint, glo is now available in 29 markets.

**Modern Oral**

Velo is our leading Modern Oral brand. Unlike inhalable products, Modern Oral products are nicotine pouches that are placed between the gum and upper lip

so that nicotine can be absorbed effectively. They are typically manufactured tobacco leaf-free.

Revenue for the category was up 47.4% to £1,165 million in 2025, largely driven by the successful roll-out of Velo Plus in the U.S.

Modern Oral was the fastest growing New Category, with strong volume and value share growth reflecting the strength of our portfolio in all regions.

In 2025, we launched our newest Modern Oral innovation, Velo Shift, offering adult consumers an innovative pouch shape and a new hexagonal can.

Opportunities for these products in markets with established oral nicotine consumption and beyond, are vast – including in emerging markets.

As of the date of this Form 20-F, our Modern Oral brands are currently available in 49 markets.

**Traditional Oral**

Traditional Oral products include snus and snuff. Snus is a moist form of oral tobacco originating from Sweden. It is available in loose form or as pouches.

With Traditional Oral products, consumers take a single portion or pouch and place it within the mouth, between the lip and gum. The nicotine and flavours

are then absorbed through the inner lining of the cheek.

As of the date of this Form 20-F, our Traditional Oral brands are currently available in 3 markets.

**Combustibles**

The Group sold 465 billion cigarette sticks and 12 billion other tobacco products (stick equivalents) in 2025. With 36 fully integrated cigarette manufacturing

facilities in 35 markets, the Group operates internationally.

As of the date of this Form 20-F, our combustible products are sold in over 140 markets.

**Principal Markets**

The Group, excluding the Group's associated undertakings, is organised into three complementary regions, with a balanced presence in both high-growth

emerging markets and highly profitable developed markets.

---

| | |
|:---|:---|
| **Regions** | **2025 Revenue** |
| United States of America (U.S.) | £11,534m |
| Americas and Europe (AME) | £9,309m |
| Asia-Pacific, Middle East and Africa (APMEA) | £4,767m |
| **Total** | **£25,610m** |

---

For a breakdown of total revenues by geographic markets for the financial years 2025, 2024and 2023, see Item [5.A](#ia53e6ca54d894bde98684b8ab3a259a8_7535) on page [28](#ia53e6ca54d894bde98684b8ab3a259a8_7535) and note [2](#ia53e6ca54d894bde98684b8ab3a259a8_538) in Part III - Item

18 Notes on the Accounts.

Our in-depth marketplace analysis delivers insights on consumer trends and segmentation, which facilitates our geographic brand prioritisation across our

regions and markets.

The U.S. is one of our three regions and is also a Top Market across our product categories (other than HP). In AME, our Top Markets by category are

Brazil, Germany, Mexico and Romania for Combustibles, Germany, Greece, Italy, Poland, Portugal, Romania, Spain and the Czech Republic for Heated

Products, Canada, France, Germany, Poland, Spain and the UK for Vapour and Denmark, Norway, Poland, Sweden, Switzerland and the UK for Modern

Oral. In APMEA, Japan and Pakistan are the Top Markets for Combustibles and Japan and South Korea for Heated Products.

For a discussion of the Company's financial condition, changes in financial condition and results of operations, see Item[5.A](#ia53e6ca54d894bde98684b8ab3a259a8_7535) on page [28](#ia53e6ca54d894bde98684b8ab3a259a8_7535).

**Seasonality** 

The Group's business segments are not significantly affected by seasonality although in certain markets cigarette consumption trends rise during summer

months due to longer daylight time and tourism.

**Raw Materials**

The Group does not own tobacco farms or directly employ farmers. However, it sources tobacco leaf directly from approximately 91,000 contracted farmers

and third-party suppliers, primarily in emerging markets. We remain committed to enhancing the long-term sustainability and viability of our contracted

farmers by focusing on improving quality, the distribution of more resilient hybrid seeds and the implementation of tailored mechanisation to reduce

production costs and increased yields.

In Brazil, for example, our Global Leaf Agronomy Development (GLAD) centre develops agronomic solutions supported by technology. These solutions

improve crop management, optimise resource efficiency and help address challenges such as climate change and soil degradation. GLAD innovations are

now applied in 12 countries. For example, automated curing barns have reduced fuel consumption by up to 50% and manual labour requirements by a similar

proportion.

We expect our third-party suppliers to uphold comparable standards in managing their farmer contracts. We conduct annual reviews of our contracts, taking

into account projected Group requirements over the medium-term (2-3 years) to ensure stability of demand and supply on production volumes. The Group

also purchases tobacco leaf from India through our associate ITC, where a portion of leaf purchase occurs via an auction system. ITC maintains full

traceability of all purchases and monitors farmers for their adherence to required standards.

British American Tobacco p.l.c. Form 20-F 2025<br>

As with any global agricultural commodity, international tobacco prices fluctuate yearly. Prices are influenced by multiple factors including production costs

(such as labour and agricultural inputs), local inflationary pressures, economic and political developments, and climatic conditions that affect the supply,

demand and crop quality.

Climate change-related risks may further contribute to tobacco price volatility. Even in a scenario in which global warming is limited to no more than 1.5°C

above pre-industrial levels, we anticipate medium- to long-term increases in energy prices which are likely to exert upward pressure on raw material costs.

Additionally, risks related to acute weather (e.g., extreme weather events, such as cyclones, floods or heatwaves) and chronic weather (continued change in

climate, resulting in changes to precipitation patterns and temperatures in general) are expected in the long-term (with respect to acute weather effects) and in

the short-term (with respect to chronic weather) to disrupt the agricultural supply chain further by reducing production capacity and yields, thereby increasing

raw material costs.

To mitigate the impact of leaf cost inflation, the Group maintains a diversified sourcing strategy built around multiple origins capable of supplying

interchangeable quality grades. This flexibility enables us to optimise procurement decisions in response to market conditions and reduces reliance on any

single geography. In addition, we operate a c,12-month duration policy that provides forward visibility on pricing and availability, helping to smooth

short-term fluctuations in supply and manage volatility in international tobacco markets. This structured approach supports cost stability, strengthens supply

resilience, and ensures continuity of high-quality leaf for our manufacturing operations.

At the time of this report, the Group believes there is an adequate supply of tobacco leaf in the world markets to satisfy its current and anticipated production

requirements.

We also source a number of other materials as part of our production requirements, covering areas that include wrapping materials and filters for our

combustibles business and liquids, heaters and batteries for our New Categories products. We work closely with our suppliers to ensure a resilient supply

chain, with contingency sourcing in place. Contracts and sourcing agreements are reviewed regularly, to ensure competitive trading terms while recognising

that prices may be impacted by external factors. Our electronics supply chain includes multiple layers of suppliers, which create additional challenges for

managing human rights risks. We take a risk-based approach to our human rights due diligence, which includes evaluation through an independent risk

assessment platform and third-party audits, covering topics that are identified as the most relevant for the Group's non-tobacco supply chain, such as working

conditions and forced labour. Sustainability represents about 10-15% of the supplier evaluation criteria and is in progress to be embedded in the contract

service levels agreements. In addition, our Supplier Code of Conduct applies to all our suppliers and outlines the actions we expect them to take in relation to

responsible mineral sourcing, and we are committed to engaging with our suppliers to build on supply chain traceability, as appropriate. We are currently

preparing for new regulatory requirements related to supply chain due diligence.

Raw material sourcing strategies are reviewed frequently (to ensure continuity of supply and cost efficiency) with other productivity initiatives (including

specification rationalisation) identified as part of the Group's drive for productivity savings to further mitigate the impact of inflation and optimise cash flow.

We also have a vast network of suppliers of indirect goods and services that are unrelated to our products, such as for IT services and facilities management.

For more details on the volatility of raw material pricing as well as on the risks associated with the sourcing, please refer to Item [5.A](#ia53e6ca54d894bde98684b8ab3a259a8_7535) - Raw materials and

other consumables paragraph on page [31](#i71dd3cfa32dd46f092cff6b4620b47a0_473689) and Item [3.D](#ia53e6ca54d894bde98684b8ab3a259a8_5548), respectively.

**Marketing**

'Love our Consumer' is one of our values and consumers are the core of everything we do. Consumer-led product innovation is central to achieving our purpose and

we believe that our multi-category approach is the most effective way to meet the diverse preferences of adult nicotine consumers worldwide.

We engage with our adult consumers through extensive market research activities and sales interactions, led by our marketing teams across the Group.

We use a globally responsible approach to marketing, seeking to raise standards and prevent underage access, while growing our market share by

encouraging adult consumers to choose our products over those of our competitors.

As one of the most established tobacco and nicotine businesses in the world, we truly understand adult consumers and their diverse preferences. This,

combined with our data and analytics-led approach, helps us to gain insights and anticipate trends.

These insights enable the development and responsible marketing of our products, so that they are fit to satisfy consumer preferences.

potential for sustainable growth. In addition, we engage loyalty programmes and other incentives to reward our adult consumers.

We work with customers to uphold responsible marketing and prevent underage access. Examples of our engagement with customers include:

–Ongoing dialogue - this represents most of our customer engagement and includes regular business meetings and performance reviews.

–Customer care portals and customer voice programmes - we operate helplines and websites for feedback and complaints, and survey retailers to assess

satisfaction via our Customer Engagement Index.

–Retail audits and engagements - we work with retail partners and conduct audits to help ensure adherence to our responsible marketing standards.

**Our Responsible Marketing Principles**

Our approach to responsible marketing is governed by our Responsible Marketing Principles (RMP) and Responsible Marketing Code (RMC). They apply to

all BAT entities and marketing suppliers working on our behalf. We seek to uphold the same high standards in every market in which we operate, even when

they are stricter than applicable local laws.

Our RMP, RMC and supporting guidelines govern how we market our products, with a particular focus on designing products for adult smokers and adult

nicotine consumers. Topics covered include Underage Access Prevention (UAP), mandatory health warnings and digital marketing content. The RMP and

RMC are underpinned by detailed guidelines and toolkits to facilitate their consistent application.

Processes are in place for reviewing and approving marketing content to facilitate compliance with both our standards and local laws.

**Marketing in a digital age**

We only use social media where the audience is predominantly adult. We do not use open social media for our combustibles brands. Where we use social

media partnerships to promote Smokeless products, we only select third-parties whose audience is predominately adult. Our e-commerce and social media

channels must also adhere to the requirements set out in the RMP and RMC. Our Digital Confidence Unit (DCU) is dedicated to monitoring social media

content 24/7 for compliance and reputational management purposes. To provide oversight, the team reviews our social media posts to check for compliance

with the RMP and RMC. The DCU engages with markets, as appropriate, to take swift, corrective action, in respect of any incidents identified.

**Reporting and resolving incidents of non-compliance** 

Any allegations of non-compliance are managed and escalated by the relevant market. Regional Heads of Legal report any relevant findings to the Regional

Audit Committee and remediation actions are implemented, as appropriate. In 2025, we identified two incidents of non-compliance with local marketing

regulations resulting in a fine or penalty<sup>1</sup>.

**Notes:**

1. The data for the number of marketing incidents resulting in a fine or penalty is based on cases submitted under applicable governance by Regions and Direct Reporting Business Units (DRBUs) throughout the

year to the Responsible Marketing Committee. Incidents are only reported here when a fine is issued.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Patents and Trademarks**

Our trademarks, which include the brand names under which our products are sold, are key assets which we consider, in the aggregate, to be important to the

business as a whole. As well as protecting our brand names by way of trademark registration, we also protect our innovations by means of patents and

designs in key global jurisdictions.

In February 2024, we entered into a settlement agreement with an indirect wholly-owned subsidiary of Philip Morris International Inc. (PMI) regarding the

infringement of certain patents and certain intellectual property rights, see Item [10.](#ia53e6ca54d894bde98684b8ab3a259a8_721)[C](#ia53e6ca54d894bde98684b8ab3a259a8_721). on page [88](#ia53e6ca54d894bde98684b8ab3a259a8_721).

**New Manufacturing Processes**

As the Group increases its capabilities in new products, including New Categories, we are developing relationships with third parties to support the

manufacture of certain components inherent within our New Category products. We have several development and commercial supply contracts, licences,

and agreements with our supply partners to support our new manufacturing processes. Within these arrangements, IP ownership and lack of supply liability

clauses are embedded within the framework documentation to ensure the risk exposure is managed accordingly and we are free to develop or source

alternative manufacturing solutions to ensure continued supply for growth and/or profitability.

We are also developing in-house manufacturing capabilities, including the manufacture of HP and Modern Oral products, and we continue to invest in the

Group's manufacturing infrastructure to support the Group in the future.

**Statements Regarding Competitive Position**

Statements referring to the competitive position of BAT and its subsidiaries are based on the Group's belief and best estimates. In certain cases, such

statements and figures rely on a range of sources, including investment analyst reports, independent market surveys, and the Group's own internal

assessments of market share.

The Group uses certain non-financial measures to assess its competitive position:

**Volume**

Volume is defined as the number of units sold. Units may vary between categories. This can be summarised for the principal metrics as follows:

–Factory-made cigarettes (FMC) – sticks, regardless of weight or dimensions;

–Roll-Your-Own/Make-Your-Own – kilos, converted to a stick equivalent based upon 0.8 grams (per stick equivalent) for Roll-Your-Own and between 0.5

and 0.7 grams (per stick equivalent) for Make-Your-Own;

–Traditional Oral – pouches (being 1:1 conversion to stick equivalent) and kilos, converted to a stick equivalent based upon 2.8 grams (per stick equivalent)

for Moist Snuff, 2.0 grams (per stick equivalent) for Dry Snuff and 7.1 grams (per stick equivalent) for other oral;

–Modern Oral – pouches, being 1:1 conversion to stick equivalent;

–Heated sticks – sticks, being 1:1 conversion to stick equivalent; and

–Vapour – units, being pods, bottles and disposable units. There is no conversion to a stick equivalent.

Volume is recognised in line with IFRS 15*Revenue from Contracts with Customers*, based upon transfer of control. It is assumed that there is no material

difference, in line with the Group's recognition of revenue, between the transfer of control and shipment date.

Volume is used by management and investors to assess the relative performance of the Group and its brands within categories, given volume is a principal

determinant of revenue.

**Volume Share**

Volume share is the estimated number of units bought by adult consumers of a specific brand or combination of brands, as a proportion of the total estimated

units bought by adult consumers in the industry, category or other sub-category. Sub-categories include, but are not limited to, Heated Products, Modern

Oral, Traditional Oral, Total Oral or Cigarettes. Except when referencing particular markets, volume share is based on our Top markets. Top markets are

those markets that management determines are strategic in each category, with reliable share data from third parties. Management notes that the markets that

form the definition of Top markets may change between periods as this will reflect the development of the category within markets including their relative

revenue sizes.

Where possible, the Group utilises data provided by third-party organisations, including NielsenIQ, based upon retail audit of sales to adult consumers. In

certain markets, where such data is not available, other measures are employed which assess volume share based upon other movements within the supply

chain, such as sales to retailers. This may depend on the provision of data by customers including distributors/wholesalers.

Volume share is used by management to assess (and management believes that it is useful to users of the financial statements to understand) the relative

performance of the Group and its brands against the performance of its main competitors in the categories and geographies in which the Group operates. This

measure is also useful to understand the Group's performance when seeking to grow scale within a market or category from which future financial returns

can be realised. Volume share provides an indicator of the Group's relative performance in unit terms versus competitors.

Volume share in each period compares the average volume share in the period with the average volume share in the prior year (using the current year Top

markets). This is a more robust measure of performance, removing short-term volatility that may arise at a point in time. Due to the timing of available

information, volume share for 2025 is for the year ended 31 December 2025 unless otherwise stated.

However, in certain circumstances, related to periods of introduction to a market, in order to illustrate the latest performance, data may be provided as at the

end of the period rather than the average in that period. In these instances, the Group states these at a specific date (for instance, December 2025).

Please refer to page [20](#ide5f87a436e64e08804b395e5625472a_732598) for the Top Markets by region and by product category.

**Value Share**

Value share is the estimated retail value of units bought by adult consumers of a particular brand or combination of brands, as a proportion of the total

estimated retail value of units bought by adult consumers in the industry, category or other sub-category in discussion. Except when referencing particular

markets, value share is based on our Top markets. Top markets are those markets that management determines are strategic in each category, with reliable

share data from third parties. Management notes that the markets that form the definition of Top markets may change between periods as this will reflect the

development of the category within markets including their relative revenue sizes.

Where possible, the Group utilises data provided by third-party organisations, including NielsenIQ, based upon retail audit of sales to adult consumers. In

certain markets, where such data is not available, other measures are employed which assess value share based upon other movements within the supply

chain, such as sales to retailers. This may depend on the provision of data by customers (including distributors and wholesalers).

Value share is used by management to assess (and management believes that it is useful to users of the financial statements to understand) the relative

performance of the Group and its brands against the performance of its competitors in the categories and geographies in which the Group operates, specifically

indicating the Group's ability to realise value relative to the market. The measure is particularly useful when the Group's products and/or the relevant category

in the market in which they are sold has developed or achieved scale from which value can be realised.

British American Tobacco p.l.c. Form 20-F 2025<br>

Value share in each period compares the average value share in the period with the average value share in the prior year (using the current year Top markets).

This is a more robust measure of performance, removing short-term volatility that may arise at a point of time. Due to the timing of available information,

value share for 2025 is for the year ended 31 December 2025 unless otherwise stated.

However, in certain circumstances, related to periods of introduction to a market, in order to illustrate the latest performance, data may be provided as at the

end of the period rather than the average in that period. In these instances the Group states these at a specific date (for instance, December 2025).

Please refer to page [20](#ide5f87a436e64e08804b395e5625472a_732598) for the Top Markets by region and by product category.

Our Top Markets are defined as the Top markets by industry revenue. These markets represent:

–c.80% of total industry vapour revenue (rechargeable closed systems consumables and disposables in tracked channels) in 2024.

–c.80% of total industry HP revenue in 2024.

–c.90% of total industry Modern Oral revenue in 2024.

–c.60% of total industry cigarettes revenue in 2024.

**Regulation of the Group's business**

**Overview**

The tobacco and nicotine industry remains one of the most heavily regulated consumer goods sectors globally, with manufacturers operating under diverse

and often complex regulatory frameworks. Nearly all markets impose restrictions on the manufacture, pricing, sale, marketing, packaging and use of tobacco

products. At the same time, regulation of new, innovative, non-tobacco nicotine products continues to evolve as governments seek to establish appropriate

frameworks for these categories. In some markets, entirely new regulatory regimes are being developed, while in others, emerging products are being brought

under existing rules that were not originally designed for them – for example, Modern Oral products being treated under pharmaceutical legislation or

regulated as food products. The Group continues to engage proactively with governments, regulators and other stakeholders to provide advice and experience

that can help to shape balanced, evidence-based policies and achieve reasonable and proportionate regulation across all product categories.

Broadly, regulation of tobacco and New Categories falls into the following categories:

**Category bans:** Prohibitions on the sale, import, possession, or use of specific products, including newer nicotine or tobacco alternatives.

**Product regulation:** Regulations governing product composition, ingredients, format, design and attributes – such as nicotine strength or flavour –

along with product safety standards and disclosure requirements.

**Packaging and labelling:** Requirements mandating health warnings and other information on packaging, as well as requirements regarding pack

design, including shape, size, weight, and colour and plain packaging requirements.

**Advertising and sponsorship:** Partial or comprehensive restrictions on advertising, promotion and sponsorship, including on brand stretching (the

association of tobacco brands with non-tobacco products) and limitations on the use of certain descriptors or brand names.

**Retail regulation:** Controls on where and how products can be sold, such as outlet types (e.g. specialists, supermarkets or vending machines),

display restrictions (e.g. above or below the counter), and requirements for age verification and adult purchase.

**Place-based restrictions:** Bans on smoking or vaping in designated public or private spaces.

**Price-related measures:** Policies influencing product prices, including excise taxes, minimum pricing, and other fiscal measures.

**Responsibility obligations:** Requirements under Extended Producer Responsibility (EPR) schemes, such as waste management initiatives, and

actions to combat illicit trade.

In addition to complying with local laws and regulations, the Group implements a range of global policies and standards that may go beyond local

requirements, reflecting its commitment to responsible business practices and high regulatory compliance standards.

The Group recognises and supports the objectives of governments and policymakers in reducing smoking rates and the associated health impacts, as well as

the role of regulation in achieving these goals. Accordingly, the Group endorses tobacco and nicotine regulations that are grounded in robust evidence,

tailored to local circumstances, effectively achieve intended policy objectives, and which avoid unintended consequences, such as the expansion of illegal

markets.

Progressive, science-based regulation—including forward-looking policies for Smokeless products – is essential to achieving a smokeless world and

supporting governments' smoke-free ambitions, helping to build A Better Tomorrow™.

The Group believes that the development of regulations for Smokeless products, should follow the below principles:

–be based on science and evidence, and proportionate to the products' risks compared with those of combustible tobacco

–facilitate adult awareness of smokeless alternatives and allow adult-only access

–ensure high product quality and environmental sustainability, while ensuring consumer relevance; and

–enable effective enforcement.

**World Health Organization's Framework Convention on Tobacco Control**

A large proportion of the regulation of tobacco products has been driven at global level by the World Health Organization (WHO)'s international treaty: the

Framework Convention on Tobacco Control (FCTC). The FCTC came into force in 2005 and contains provisions which seek to reduce tobacco consumption

and exposure to smoke. The original treaty is supplemented by one protocol on illicit trade and guidelines on the implementation of several of the treaty

obligations.

While the guidelines are not legally binding, they provide a framework for Parties to the treaty on implementing specific policies that target tobacco

consumption. To date, the FCTC has been ratified by 183 countries - not including the U.S.

Over time there have been growing efforts by tobacco-control advocates and public health organisations to encourage governments to regulate the tobacco

and nicotine industries in ways that go beyond the measures originally agreed in the FCTC. As a result, the scope of regulation is expected to continue to

expand, potentially encompassing products and areas not envisaged when the treaty was first adopted.

In recent years, the WHO and other public health bodies have been advancing what has been described as a broader interpretation of the FCTC, reframing its

objectives to encompass nicotine use rather than focusing solely on tobacco consumption. This is despite the original text referring to nicotine solely in the

context of dependence among tobacco users, not as a subject for wider regulation.

All engagement efforts by the tobacco industry are closely monitored by these organisations and are often erroneously characterised as unlawful. In turn, this

has an impact on the willingness of Parties to engage with the industry, which limits the opportunity for the tobacco industry to provide its experience and

expertise in the development of regulation around nicotine products.

The Eleventh Session of the Conference of the Parties to the WHO Framework Convention on Tobacco Control (COP11) took place in November 2025.

Among other debates, proposals and decisions, COP11 featured a debate on Tobacco Harm Reduction (THR), in which a number of Parties expressed

British American Tobacco p.l.c. Form 20-F 2025<br>

support for a recommendation that Parties should consider it as a policy option when establishing national tobacco control frameworks and strategies.

However, no consensus was reached on the proposals. A decision on Article 19 (liability) was adopted, inviting Parties to consider recommendations from

the Expert Group – the Expert Group was created to examine the reasons for low implementation of Articles 9 and 10 (regulation of product contents and

disclosure) and related partial guidelines. Regarding environmental protection under Article 18, COP11 adopted a decision focusing on research, data

collection, awareness-raising and examination of potential regulatory pathways. Earlier proposals such as filter bans, mandatory classification of tobacco

waste as hazardous, and assertions of FCTC primacy in environmental fora were not included in the final text. Instead, the decision emphasises coordination

with environmental agreements and the preparation of a detailed report for COP12. No new guidelines were adopted at COP11. The next Conference of the

Parties (COP12) will take place in Armenia in November 2027.

**EU Tobacco and Related Products Directive (2014/40/EU)**

The most recent version of the EU Tobacco and Related Products Directive (2014/40/EU – colloquially called TPD2), which is the current main framework

for tobacco and nicotine product regulation for EU Member States, was adopted in April 2014 for transposition by May 2016. TPD2 seeks to ensure that the

same rules apply across all Member States, though they are also able to go beyond its requirements provided such measures are compatible with EU law.

For tobacco products, the main provisions of TPD2 include: a ban on the sale of cigarettes and roll-your-own tobacco with a characterising flavour, including

menthol flavours; requirements for combined pictorial and textual health warnings covering 65% of the two main pack surfaces (front and back) for

cigarettes; restrictions on pack shape and size, as well as ingredients reporting and 'tracking and tracing' requirements. The Directive also regulates vapour

products by introducing a nicotine limit of 20 mg/ml, a premarket notification requirement and ingredient reporting requirements and advertising restrictions.

In May 2021, the European Commission published a report reviewing the implementation of the Directive which concluded it had been successful in

reducing tobacco use but that more action was required, particularly on new categories such as vapour and tobacco heated products (THPs).

Stricter rules for THPs have already been adopted by way of a delegated act (Commission Delegated Directive 2022/2100), which removed the exemption

for THPs from the ban on tobacco products with characterising flavours and the requirement to carry certain health warnings (see the Regulation of

Ingredients, including Flavoured Tobacco Products section for details).

A revised legal instrument (TPD3), which may come in the form of an EU Regulation which would be immutable and directly applicable without any

transposition into national law, is currently being drafted. The European Commission is expected to propose a revision to the existing EU tobacco control

framework (both TPD2 and the Tobacco Advertising Directive) in 2027. The process of reviewing the tobacco control framework has been underway for the

last three years. A future framework will most likely take the form of a revised Directive, although directly applicable EU regulations are possible.

Specific provisions in any new Directive are yet to be confirmed. Recent Commission statements and publications - such as the EU's Beating Cancer Plan

and Cardiovascular Health Plan - suggest that further restrictions will apply to traditional combustible tobacco products, which could include standardised

packaging, stricter ingredient rules and a ban on the use of plastic-containing filters. For vapour products, and where still permitted for THPs, changes could

include restrictions on flavours, packaging, communications and ingredients, and the extension of regulation to nicotine-free products. A revised TPD2 could

seek to regulate nicotine pouches, either by creating a new framework or potentially banning the category. Herbal Products for Heating are likely to also be

addressed by any Directive, although details on specifics are less clear for this category.

**EU Single-Use Plastics and Environmental Regulation**

The Single Use Plastics Directive (EU) 2019/904 (the SUP Directive) entered into force in July 2019. It mandates Member States to establish Extended

Producer Responsibility (EPR) schemes to cover the costs of litter clean-up and to implement on-pack marking requirements for tobacco product filters.

Member States were required to transpose the SUP Directive into national law by 3 July 2021, with an implementation deadline of 3 July 2021 for pack

marking requirements and of 5 January 2023 for EPR schemes.

However, several Member States experienced delays in transposing and implementing the SUP Directive, resulting in EPR schemes becoming operational

months - or in some cases years - behind schedule. Spain, for instance, only published its implementing regulations in late 2024, while Greece began

discussing its own in early 2025. At the EU level, the European Commission issued long-awaited guidance in 2025 to assist Member States in defining cost

criteria for litter clean-up. It also confirmed plans to evaluate the SUP Directive by 2027 to assess its impact and determine whether revisions are required. A

public consultation and call for evidence was launched in December 2025, open for feedback through to March 2026.

The European Commission also held consultations on a proposed Circular Economy Act in 2025 and on reducing administrative burdens arising from

environmental legislation. Internationally, the UN Environment Programme's Intergovernmental Negotiating Committee failed to reach agreement on a

legally binding treaty on plastic pollution, after opposition to a cap on plastic production from countries including Russia, India and the United States. The

Committee is expected to reconvene in 2026.

**Restrictions on the Use of Tobacco and Vapour Products in Public and Private Places**

The Group operates across various markets where restrictions are in place on smoking and vaping in certain private, public, and workplace settings, such as

restaurants, bars, beaches, and nightclubs. While the specifics of these restrictions vary, comprehensive bans on smoking, vaping and the use of THPs in

public and workplace environments have been established in markets such as the U.S., Canada, the UK, France, Spain, New Zealand, and Australia. More

recently, new restrictions have included restrictions on the use of such products within a specified distance from designated public areas, such as primary

schools, and/or in private places such as vehicles when children are present or balconies in shared housing.

**Regulation of Ingredients, including Flavoured Products**

Some countries have restricted or banned the use of certain flavours or ingredients in cigarettes and other tobacco, vapour and nicotine products. These

actions are typically based on claims that flavoured products disproportionately appeal to minors, encourage youth smoking initiation or can increase the

addictiveness or toxicity of products. In these cases, permitted flavours are often limited to tobacco and/or menthol variants only.

Such restrictions have been enacted in markets including the U.S., Canada, Australia and Türkiye. The EU's TPD2 similarly banned the sale of cigarettes,

roll-your-own tobacco and THPs, with characterising flavours other than tobacco. However, some regulations relating to flavours currently face legal

challenges. In Brazil, for example, a proposed ban on ingredients with flavouring or aromatic properties, including menthol, remains unenforced due to

ongoing litigation.

Additionally, regulators in Europe are increasingly examining restrictions on flavours and other ingredients for RRPs<sup>\*†</sup>. For example, Finland, the

Netherlands, Denmark, Spain and the UK have adopted, or are considering adopting, restrictions on flavours for vapour products. In 2023, an instrument

(called a Delegated Directive), issued by the European Commission, extended the ban in the TPD2 on characterising flavours for tobacco products to also

apply to THPs. Member States were required to apply the Directive from October 2023.

A growing number of countries have restricted, or are considering restrictions on flavours for nicotine pouches, including Canada, Denmark, Latvia and

Poland, while a very limited number, such as Spain, are considering flavour restrictions for Herbal Products for Heating. In a few cases, some countries have

sought to restrict flavours for all "nicotine products", thereby seeking to capture all categories under flavour provisions.

Further legislation on ingredients for both cigarettes and RRPs<sup>\*†</sup>is expected. The Conference of Parties to the FCTC has tasked a Working Group to expand

the partial guidelines on the regulation of the contents of tobacco products and tobacco product disclosures (Articles 9 and 10 of the FCTC). This Working

Group's activity was suspended in 2018 and an Expert Group was created to examine the reasons for low implementation of Articles 9 and 10 and related

partial guidelines. Although the Expert Group reported back in 2021, COP10 could not agree on whether to proceed through a Working Group or an Expert

Group. COP11 again failed to resolve this question, deferring it to COP12 in 2027.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Plain and Standardised Packaging and Design**

Plain (or 'standardised') packaging typically involves restrictions on using trademarks, logos, and colours on product packaging, allowing only a single

approved base colour and specifying the font, size, and placement of the brand name and variant. Tobacco control advocates have tended to prioritise these

measures, with non-binding FCTC guidelines suggesting that Parties "should" consider adopting plain packaging.

As of November 2025, 28 countries have either implemented or passed legislation for plain packaging requirements impacting cigarettes, including Australia,

Belgium, Canada, Denmark, France, Ireland, New Zealand, the Netherlands, Saudi Arabia, Singapore, Türkiye and the UK. A number of other countries,

including but not limited to Spain, South Africa and potentially Indonesia, are currently actively considering introducing similar legislation.

More recently, some regulators and tobacco control advocates have examined measures which could apply to individual cigarettes, such as mandatory on-

product health messages. A series of such messages was approved in Canada and Australia, and regular cigarettes were required to carry the messages as of

April 2025 in both jurisdictions.

**Notes:**

\*Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.

†Products sold in the U.S., including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.

**Product Display Bans at Point of Sale and Licensing Regimes**

Product display bans at the point of sale and licensing regimes have become relatively commonplace for combustible tobacco products and have been

implemented for several years in a number of countries, including in Norway, Iceland, Finland, New Zealand, Thailand, Canada, Australia, and the UK. A

small number of countries have also sought to extend these provisions to apply to RRPs<sup>\*†</sup>.

Some countries, such as Hungary, Finland and Spain, have also sought to restrict the supply of tobacco products, including through the adoption of licensing

regimes limiting the number of retail outlets from which it is possible to purchase tobacco products or by prohibiting the sale of tobacco products within a

certain distance of specified public places.

**Illicit Trade**

The illegal market for tobacco products is an increasingly important issue for governments and the industry across the world with an increasing number

considering or adopting regulation to support anti-illicit trade activities.

These regulations may include mandatory "tracking and tracing" systems to help regulators identify where seized products entered the supply chain, security

features to prevent counterfeiting, and inspection and authentication requirements for seized products. For instance, the TPD2 mandates that all unit packets

of tobacco be marked with a unique, indelible identifier that provides various details about the product's route-to-market when scanned.

In November 2012, FCTC Parties adopted the protocol to Eliminate Illicit Trade in Tobacco Products (Protocol), which includes a range of supply chain

control measures, such as the implementation of "tracking and tracing" technologies. As of November 2025, 72 parties, including the EU, have ratified the

Protocol.

**Regulation of Reduced-Risk Products**<sup>\*†</sup> **(RRPs)**

The vapour products category has grown rapidly in both size and complexity in the past decade. However, there is still no consensus on how RRPs<sup>\*†</sup> should

be regulated. The EU's TPD2, for example, establishes frameworks for the regulation of novel tobacco products and vapour products by introducing nicotine

limits, health warning requirements, advertising restrictions and pre-market notification and post-market disclosure obligations. As noted above, the World

Health Organization and other public health organisations have also sought to widen the scope of the FCTC to include RRPs<sup>\*†</sup>.

In countries where sales of vapour products are permitted, governments are seeking to regulate them more strictly, including by adopting bans on vaping in

public places, restrictions on flavours, requiring plain packaging and retail display bans. An increasing number of governments have moved to ban the sale of

single-use vapour products, with Belgium, the UK and New Zealand implementing bans in 2025.

Other RRPs<sup>\*†</sup> such as nicotine pouches and THPs are also facing increasing scrutiny. In many jurisdictions, existing legislative definitions of 'tobacco

products' are interpreted as applying to THPs, thereby subjecting them to the same restrictions as those designed for traditional combustible tobacco

products, often without any need to change existing laws.

Countries including Brazil, India and Mexico, have expressly banned all RRPs<sup>\*†</sup> while others, such as Australia and Japan, regulate vapour products as

medicinal products, thereby heavily restricting or effectively banning their sale.

A number of countries, including Netherlands, Belgium, France and Germany, have implemented or have passed regulations to ban Modern Oral products,

either through provisions banning their sale outright, or via classification as foodstuffs, meaning their sale is de facto prohibited. Certain European countries,

such as Spain and Luxembourg, have sought to de facto ban sales of nicotine pouches by limiting the amount of nicotine permitted in the products to levels

so low that the products would be unsatisfying for consumers. Other jurisdictions have sought to implement bans via their classification as tobacco substitutes

or medicinal products. It is considered likely that tobacco-free nicotine pouches will be regulated at a European level as part of the next revision of the

Tobacco Products Directive (TPD). It is also possible that Herbal Products for Heating could be addressed in the TPD.

**Additional measures**

Generational Sales Bans (GSBs) are among the latest significant developments under discussion in tobacco control policy. These measures seek to prohibit

the sale of tobacco products - and in some cases nicotine products - to anyone born after a specified date, meaning affected individuals would never legally be

permitted to purchase such products in their lifetime. The most prominent example is in the United Kingdom, where legislation proposes to ban the sale of

tobacco and THPs to anyone born on or after 1 January 2009.

The concept has attracted some international attention: the Maldives passed legislation to implement a similar ban in 2025; the Turkish Government is

reportedly drafting a bill with comparable provisions; and the Australian and Norwegian Governments have indicated they are assessing similar approaches.

In several other countries, individual lawmakers have also attempted to introduce GSB proposals, though none have yet been enacted. The real-world

implications of a full generational ban - including any impact on illicit trade - remain uncertain.

New Zealand became the first country to legislate for a GSB in 2022, introducing a ban on tobacco sales to anyone born on or after 1 January 2009.

However, these provisions were repealed by a subsequent government due to enforcement concerns and fears of fuelling an illicit market. Likewise, the

Malaysian Government sought to include GSB provisions in a 2023 bill, but they were later removed amid concerns over their constitutionality.

Another key measure that has garnered attention from regulators in recent years is the proposal to gradually reduce the nicotine content in combustible

tobacco products to levels that are 'minimal' or 'non-addictive'. Notable countries that have initiated significant discussions on these proposals include New

Zealand, where the measure was approved in Parliament but subsequently repealed by the successor government, with concerns expressed as to the efficacy

of such a method for cessation and its potential to contribute significantly to illicit trade. In the U.S., plans to introduce a similar policy have been removed

from the Government's list of immediate priorities.

**Cannabis**

The regulatory environment and consumer sentiment towards cannabis is also evolving. From the reclassification of medical cannabis in Germany, to the

roll-out of recreational pilot programs in Switzerland and the Netherlands, we are seeing progress across the globe. Such developments are essential to further

exploration of the category, and we will continue to monitor the changes in the regulatory environment as it evolves.

British American Tobacco p.l.c. Form 20-F 2025<br>

**The U.S.**

Through the Reynolds American Inc. (RAI) subsidiaries, the Group is subject to U.S. federal, state, and local laws and regulations. The Family Smoking

Prevention and Tobacco Control Act (FSPTCA), which was enacted in 2009, grants the U.S. Food & Drug Administration (FDA) broad authority over the

manufacture, sale, marketing, and packaging of tobacco products but initially limited the FDA's authority to cigarettes, smokeless tobacco products, cigarette

tobacco and roll-your-own tobacco products. Elements of the FSPTCA include: filing of facility registrations, product listing, constituent testing and

ingredient information; obtaining the FDA's clearance for new products and product modifications; banning all characterising flavours other than tobacco or

menthol in cigarettes; establishing 'user fees' to fund the FDA's regulation of tobacco products; requiring large pictorial warnings to be included on cigarette

packaging and advertising; directing FDA to establish good manufacturing practices; revising the labelling and advertising requirements for smokeless

tobacco products; and requiring the study of menthol. The U.S. Congress did limit the FDA's authority in various ways, including prohibiting it from:

–Banning categories of tobacco products; and

–Requiring the reduction of nicotine yields of a tobacco product to zero.

On 10 May 2016, the FDA issued a final regulation, referred to as the Deeming Rule, deeming all remaining products that are "made or derived from

tobacco" to be subject to the FDA's regulatory authority under the FSPTCA. The Deeming Rule became effective as of 8 August 2016, though some

requirements of the Deeming Rule had their own compliance dates. Such 'deemed' tobacco products subject to the FSPTCA include, among others,

electronic nicotine delivery systems (including e-cigarettes, e-hookah, e-cigars, vape pens, advanced refillable personal vapourisers, electronic pipes and e-

liquids mixed in vape shops), certain dissolvable tobacco products, cigars, pipe tobacco, and nicotine pouches.

The 'pre-existing products' date under the Final Rule for newly deemed products remained the same as the 'pre-existing products' date for those tobacco

products already subject to the FSPTCA – 15 February 2007 (known as 'Pre-Existing Tobacco Products'). Any tobacco product that was not legally

marketed as of 15 February 2007 is considered a new tobacco product subject to premarket review by the FDA. The FDA established a compliance policy

allowing all newly deemed new tobacco products that were on the market as of 8 August 2016 to remain on the market so long as the manufacturer filed a

Premarket Tobacco Product Application (PMTA) by a specific deadline (9 September 2020).

In October 2019, R. J. Reynolds Vapor Company filed PMTAs for Vuse Solo. Based upon requirements of the FSPTCA that must be addressed in PMTAs,

and the FDA's Guidance regarding the type of evidence required for such applications, the costs of preparing a PMTA are significant. R. J. Reynolds Vapor

Company thereafter filed PMTAs for the remaining Vuse products (Vibe, Ciro, and Alto) and the Velo products (pouch and lozenge) by the September 2020

deadline. Certain additional data from ongoing research relevant to the Alto and Velo applications were submitted as amendments to the PMTAs during the

FDA review process.

The FDA issued marketing granted orders for the Vuse Solo device and its tobacco ('original') flavour in October 2021, but issued a marketing denial order

for Vuse Solo flavours other than menthol (which were not on the market). That denial is being appealed with the FDA. In May 2022, the FDA issued

marketing granted orders for the Vuse Vibe device and its tobacco flavour and the Ciro device and its tobacco flavour but issued a marketing denial order for

flavours other than menthol (which were not on the market). R. J. Reynolds Vapor Company has appealed the denials issued for the relevant Vuse Vibe and

Ciro products by requesting further Agency review. We have received and are challenging the FDA's marketing denial orders dated January 2023 related to

Vibe and Ciro (menthol variants) and the FDA's marketing denial orders dated March 2023 related to Solo (menthol variants).

In October 2023, the FDA issued a marketing denial order for Vuse Alto menthol and mixed-berry (the latter of which was not on the market). As with Vibe,

Ciro, and Solo, we challenged the denial order in court with retailers as co-petitioners. We have received court-ordered stays of enforcement of the FDA's

denial orders for currently marketed menthol Vuse Alto, Solo, and Vibe products, which means these Vuse menthol products can continue to be marketed

and sold while the judicial review process continues.In the U.S., menthol variants account for 75% of total Vuse consumables (2024: 73%). In a case called

FDA v. Wages & White Lion Investments, L.L.C, the U.S. Supreme Court concluded that with respect to dessert, candy, and fruit-flavoured e-cigarettes sold

by another company, the FDA had not unlawfully changed positions on what evidence was required for those products, and the denial of the marketing

authorisation was rightful.We have arguments that the facts and circumstances of our cases are different from Wages & White Lion. There can be no

assurance, however, that the Vuse menthol or other flavours-related appeals will succeed. The U.S. Supreme Court ruled in 2025 on an important aspect of

R.J. Reynolds Vapor Company's challenge to the FDA's denial of menthol and mixed-berry Alto. Specifically, the Supreme Court held that retailers are

"adversely affected" and thus have a cause of action to challenge an FDA denial order. So the retailers affected by the FDA's denial orders for Vuse menthol

products could validly challenge those orders in the Fifth Circuit Court of Appeals. In two subsequent decisions, the Fifth Circuit held that venue is proper so

long as just one of the petitioners has its principal place of business in the circuit, which, assuming it is applied in the Vuse cases, would allow R.J. Reynolds

Vapor Company's challenges to remain in the Fifth Circuit. The Vuse cases are now being held in abeyance until May 2026. The FDA agreed to review a

new application for menthol Vuse Alto, which R. J. Reynolds Vapour Company submitted in August 2025. The menthol Vuse products can therefore remain

on the market until at least May 2026. In May 2026, if the FDA has not decided the new application, the parties may agree to continue holding the cases in

abeyance for longer, or may proceed to merits briefing.

In July 2024, the FDA issued marketing granted orders for the Vuse Alto device as well as Vuse Alto Rich Tobacco and Golden Tobacco. The Group's Velo

products remain on the market in the U.S., pending the FDA's decisions on their premarket tobacco product applications and there can be no assurance these

applications will be granted. If the FDA denies a marketing authorisation, then the relevant product(s) would need to be withdrawn from the market (unless a

court, or the agency via supervisory review, intervenes).

Legislation granting the FDA authority over synthetic nicotine products (products containing nicotine not 'made or derived from tobacco') went into effect in

April 2022, which required manufacturers of such products to file PMTAs by a May 2022 deadline to continue marketing those products.

In July 2024, the Group acquired the marketing rights to synthetic nicotine pouch products that had submitted PMTAs by the May 2022 deadline. Those

products are marketed as Velo Plus Pouches and Grizzly Pouches. The applications for those products remain pending with the FDA and the products are on

the market in the U.S. pending the FDA's review. There can be no assurance that the application will be granted.

**Comprehensive Plan for Tobacco and Nicotine Regulation**

In March 2018, the Agency issued three Advance Notices of Proposed Rulemaking, seeking information on (1) the lowering of nicotine levels to non-

addictive or minimally addictive levels, (2) the impact of flavours (including menthol) in increased initiation among youth and young adults as well as

assisting adult smokers to switch to potentially less harmful forms of nicotine delivery, and (3) the patterns of use and public health impact of premium

cigars. In April 2022, the FDA published a proposed product standard that would ban menthol as a characterising flavour in cigarettes. The FDA accepted

public comment on this proposed rule through August 2022. RAI Services Company submitted a detailed comment to the FDA (available on the U.S.

Government's Regulations.gov website) opposing the proposed rule as unsupported by existing scientific evidence and with the potential for negative

unintended consequences. The Biden Administration initially announced a non-binding target date of August 2023 for issuing the final rule. The

administration then pushed the target date back to March 2024. Then, in April 2024, the Biden Administration announced that the final rule would be further

delayed, and the final rule has yet to be issued. The rule has now been withdrawn from the FDA's list of priorities.

**Additional regulation**

In December 2022, the sale of all tobacco products with characterising flavours other than tobacco (including menthol) were banned in the state of California.

This has negatively impacted the Group's volumes in the U.S.In January 2025, California extended the prohibition to cover tobacco products that produce a

British American Tobacco p.l.c. Form 20-F 2025<br>

"cooling sensation" and instituted a registry for all "unflavored" tobacco products that can be sold in the state – this includes combustibles, Traditional Oral,

Modern Oral and Vapour products. The list took effect on 1 January 2026.

In April 2019, the FDA issued a proposed rule on the format and content of reports to demonstrate substantial equivalence. This follows on from the FDA's

previous statements regarding the development of foundational rules so as to provide clarity and predictability to the tobacco product submission process,

including not only substantial equivalence applications but new product applications as well as MRTP applications. In September 2019, the FDA published a

proposed rule on the format and content of PMTAs.

The final foundational rules for substantial equivalence and PMTAs were published on 5 October 2021 and became effective on 4 November 2021. The FDA

has not yet promulgated its proposed rule for MRTP applications.

Under the FSPTCA, for a manufacturer to launch a new tobacco product or modify an existing tobacco product after 15 February 2007, the manufacturer

must obtain an order from the FDA authorising the new or modified product to be marketed. One exception is that a manufacturer that introduced a cigarette

or smokeless tobacco product between 15 February 2007 and 22 March 2011 could file a substantial equivalence report with the FDA demonstrating either

(1) that the new or modified product had the same characteristics as a product commercially available as at 15 February 2007, referred to as a predicate

product, or (2) if the new or modified product had different characteristics than the predicate product, that it did not raise different questions of public health.

A product subject to such report is referred to as a provisional product. A manufacturer may continue to market a provisional product unless and until the

FDA issues an order that the provisional product is not substantially equivalent, in which case the FDA could then require the manufacturer to remove the

provisional product from the market. Many of the RAI subsidiaries' cigarette and smokeless tobacco products currently on the market are provisional

products.

In January 2017, the FDA issued its first proposed product standard whereby it would require the reduction, over a three-year period, of the levels of N-

nitrosonornicotine (NNN) contained in smokeless tobacco products. Since issuing this proposal, the FDA has simply stated that it is evaluating submitted

comments. The FDA's semi-annual regulatory agenda has not listed the NNN proposal since its publication. Thus, it is not known whether or when this

proposed rule will be finalised, and, if adopted, whether the final rule will be the same as or similar to the proposed rule.

On 18 March 2020, the FDA issued a rule mandating the incorporation on cigarettes packages and advertising of graphic health warnings. The rule required

eleven new textual warnings, each accompanied by a specific graphic image, on the top 50% of the front and back of all cigarette packages, on the left 50%

of the front and back of cigarette cartons, and on 20% of all cigarette advertising in a location at the top of each advertisement, beginning 18 June 2021.

On 3 April 2020, RAI subsidiaries R. J. Reynolds Tobacco Company and Santa Fe Natural Tobacco Company, in conjunction with several cigarette

manufacturers and retailers, filed a lawsuit seeking an order and judgment holding unlawful, enjoining, and setting aside the rule in its entirety. The court,

following multiple orders to delay the implementation of the rule, invalidated it as unconstitutional in December 2022. In February 2023, the FDA appealed

this decision to the U.S. Court of Appeals for the Fifth Circuit. On 21 March 2024, the U.S. Court of Appeals for the Fifth Circuit issued its opinion reversing

the court's decision, and concluding that the warnings are constitutional. On 25 November 2024, the U.S. Supreme Court declined to review the Fifth

Circuit's decision. Plaintiffs continue to pursue their remaining statutory claims against the rule.

On 13 January 2025, the District Court entered an order postponing the effective date of the rule pending final disposition of the remaining statutory claims.

The FDA appealed that order to the U.S. Court of Appeals for the Fifth Circuit; briefing has concluded and the court has not yet scheduled oral argument. In

the meantime, on 29 August 2025, in a separate case, the U.S. District Court for the Southern District of Georgia entered an order vacating the rule due to the

FDA's failure to follow notice-and-comment procedures. The FDA has appealed that order to the U.S. Court of Appeals for the Eleventh Circuit, and the

appeal remains pending.

Under the prior Biden Administration, the FDA announced its intention to issue a final rule to ban menthol as a characterising flavour in cigarettes. The

Trump Administration has listed the rule as withdrawn on the Spring 2025 Unified Agenda. It is not known whether or when this rule will be finalised, and, if

adopted, whether the final rule will be the same as or similar to the proposed rule.

On 15 January 2025, in the final days of the outgoing Biden Administration, the FDA issued a proposed product standard whereby the agency would limit

nicotine levels in cigarettes following a two-year effective date from publication of any final rule. The proposed rule was subject to public comment. RAI

companies submitted a detailed comment opposing the proposed comment deadline. The Trump Administration has listed the rule as "withdrawn" on the

Spring 2025 Unified Agenda.

Cigarettes and other tobacco products are subject to substantial taxes in the U.S. All states and the District of Columbia currently impose cigarette excise

taxes. Certain city and county governments, such as those of New York City, Philadelphia, and Chicago, also impose substantial excise taxes on cigarettes

sold in those jurisdictions. Also, all states and the District of Columbia currently subject smokeless tobacco products to excise taxes. Various states and the

District of Columbia impose a tax on Vapour products, such as e-cigarettes, and many other states have proposed taxes on Vapour products. Currently, there

is no federal tax on Vapour products.

State and local governments also consider and implement other legislation and regulation regarding the sale of tobacco products. Measures include, among

others, limiting or prohibiting the sale of flavours in tobacco products, restricting where tobacco products may be sold and increasing the minimum age to

purchase tobacco products.

The Group believes that, as a responsible business, it can contribute through information, ideas and practical steps, to help regulators address the key issues

regarding its products, including underage access, illicit trade, product information, product design, involuntary exposure to smoke and the development of

potentially less harmful products, while maintaining a competitive market that accommodates the significant percentage of adults who choose to be tobacco

consumers. The Group is committed to working with national governments and multilateral organisations and welcomes opportunities to participate in good

faith to achieve sensible and balanced regulation of traditional tobacco and potentially RRPs.

See also the Group's risk factors related to legal, regulatory and compliance risks under Item [3.D](#ia53e6ca54d894bde98684b8ab3a259a8_5548).

**Notes:**

\*Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.

†Products sold in the U.S., including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.

**Item 4. C - Organizational structure**

British American Tobacco p.l.c. is the Group's parent company. We have a number of direct and indirect subsidiaries, incorporated across the globe. A

complete list of our subsidiaries is filed as [Exhibit 8](#ia53e6ca54d894bde98684b8ab3a259a8_775) to this Form 20-F.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Item 4. D - Property, plant and equipment**

The Group uses a combination of in-house and contract manufacturers to manufacture its products.

**BAT-owned manufacturing facilities**<sup>1</sup>

---

| | | | | |
|:---|:---|:---|:---|:---|
| | United States | AME | APMEA | Total |
| Fully integrated manufacturing | 1 | 13 | 22 | 36 |
| Other processing sites (including leaf threshing and OTP) |  | 6 | 9 | 15 |
| Sites manufacturing other products (including Snus, Modern Oral and Liquids) | 2 | 5 |  | 7 |
| Research and development facilities | 1 | 2 | 3 | 6 |
| **Total** | 4 | 26 | 34 | 64 |

---

**Note:**

1. As of 31 December 2025.

The plants and properties owned or leased and operated by the Group's subsidiaries are maintained in good condition and are believed to be suitable and

adequate for the Group's present needs.

The technology employed in the Group's factories is sophisticated, especially in the area of cigarette-making and packing where throughputs can reach

between 500 and 1,000 packs per minute. The Group can produce many different pack formats (e.g., the number of cigarettes per packet) and configurations

(e.g., bevel edge, round corner, international) to suit marketing and consumer requirements. New technology machines are sourced from the leading

machinery suppliers to the industry. Close cooperation with these organisations helps the Group support its marketing strategy by driving its product

innovations, which are brought to the market on a regular basis.

The Group utilises quality standards, processes and procedures covering the entire end-to-end value chain to help to ensure quality products are provided to

its customers and adult tobacco consumers according to the Group's requirements and End Market regulatory requirements.

In 2025, the Group manufactured cigarettes in 36 cigarette factories in 35 countries. These plants and properties are owned or leased and operated by the

Group's subsidiaries. The Group's factory outputs and establishments vary significantly in size and production capacity. In line with our corporate

commitment to fight climate change, our factories have decarbonisation, water usage and waste optimisation programmes.

Also in 2025, the Group used third-party manufacturers to manufacture the components required, including the devices, related to New Categories. The

Group also used third-party manufacturers to supplement the Group's own production facilities in the U.S. and Poland to bottle the liquids used in Vapour

products. Further, in 2025, the Group's manufacturing facilities in Poland and Sweden (included in the above analysis) also undertook research and

development activities, but were not distinct sites from the manufacturing activities. As such, they were not recorded in the research and development

facilities to avoid the risk of double counting.

For more information on property, plant and equipment, please refer to [note 13](#ia53e6ca54d894bde98684b8ab3a259a8_571) in Part III - Item 18 Notes on the Accounts.

**Item 5 - Operating and Financial Review and Prospects**

**Item 5. A - Operating results**

The following discussion is based on and should be read in conjunction with the Company's audited consolidated financial statements beginning on page [102](#ia53e6ca54d894bde98684b8ab3a259a8_526)

of this report.

**Key Factors Affecting Results of Operations**

**The illicit market**

The illicit tobacco market has continued to increase since the COVID-19 pandemic, and is estimated to have reached just above 15% of total global

volume in 2025. Exacerbated by the increased cost-of-living in many countries, overall illicit volumes are expected to approach an unprecedented level of

sales by 2027. Illicit trade exists in all world regions. Its growth is forecast to continue to worsen especially in Australasia, and the Middle East and Africa, in

the continued absence of effective enforcement and regulatory or fiscal changes.

**Global combustibles regulation**

Combustible tobacco products remain among the most tightly regulated consumer goods worldwide. Longstanding measures across many countries include

restrictions on flavour additives, standardised (or plain) packaging, prohibitions on smoking in enclosed public spaces, and bans on retail product displays – all

aimed at reducing the appeal, visibility and accessibility of tobacco.

In recent years, regulation has intensified further, with many governments – often drawing on World Health Organization (WHO) guidance – setting 'smoke-

free' or 'tobacco endgame' targets aimed at reducing adult smoking prevalence to below 5% within defined timeframes. To achieve these goals,

some countries have begun considering more novel or interventionist approaches.

One such approach is the generational sales ban (GSB), which would permanently prohibit the sale of cigarettes and other tobacco products to anyone born after a

specified year. The UK is among the most prominent examples, with legislation under consideration that would ban sales to individuals born on or after 1 January

2009. The Maldives has enacted similar legislation, while the Turkish, Australian, Irish and Norwegian governments are among those reported to be evaluating

comparable measures to various degrees. Individual lawmakers in other countries and regional assemblies have also attempted to introduce GSB-style bills.

New Zealand and Malaysia were among the first countries to legislate for such policies but subsequently reversed course in 2023, citing concerns around

enforcement, proportionality and constitutional compatibility. The real-world implications of a full generational ban – including any impact on illicit trade – remain

uncertain. Other recent innovations include Canada and Australia's introduction of requirements for individual health warnings to appear directly on cigarette

sticks.

Lastly, environmental considerations are increasingly shaping tobacco regulation. The European Union's Single-Use Plastics Directive (SUP Directive)

requires Member States to establish extended producer responsibility schemes covering products such as cigarette filters. The European Commission has

commenced an evaluation of the SUP Directive – to be completed by July 2027 – to assess how it has worked in practice, collect evidence and opinions on

whether the current measures are sufficient, and identify areas for improvement. Proposals to restrict, phase out or more tightly regulate the use of filters in cigarettes

have been raised in a small number of countries.

At the global level, negotiations to develop an internationally binding instrument on plastic pollution, including in the marine environment, remain ongoing.

A number of stakeholders have advocated for the inclusion of measures specific to cigarette filters, signalling that sustainability issues are likely to be an

increasing focus in future tobacco regulation.

British American Tobacco p.l.c. Form 20-F 2025<br>

See also the Group risk factors related to legal, regulatory and compliance risks under Item [3.D](#ia53e6ca54d894bde98684b8ab3a259a8_5548) and the section regarding the regulation of the Group's

business under Item [4.B](#ia53e6ca54d894bde98684b8ab3a259a8_10) for further details on regulation and the related risks.

**AI and Optimisation**

Artificial intelligence (AI) continues to transform how businesses operate, make decisions and engage with consumers. The integration of AI across product

design, logistics and marketing has accelerated, delivering efficiency gains, deeper insights and more tailored experiences. Yet the full extent of AI's benefits

is still being realised. While some applications remain experimental or, in some cases, potentially overstated, others are already generating measurable

productivity improvements and reshaping competitive dynamics.

**A changing workforce**

Automation and intelligent systems are redefining roles and organisational structures. As demand for digital and analytical skills grows, companies are

rethinking talent strategies, upskilling employees and embedding AI into daily operations to boost performance and engagement. Those that adapt early are

likely to capture significant productivity and innovation gains.

**Smarter decisions and empowered consumers**

AI is enabling businesses to anticipate consumer needs and optimise product design, sustainability and quality. While consumers are using AI to discover,

compare and assess products, making informed, data-driven choices. The growing intersection of AI and personal health technology is also shaping

behaviour. From wearable devices and digital health assistants to personalised wellness recommendations, consumers are using AI to better understand and

manage their wellbeing. For the nicotine industry, these developments could influence how adult consumers seek information, evaluate alternatives and make

more health-conscious decisions – reinforcing the importance of transparency, accuracy and innovation in product development.

**Continued transition to new products**

The rapid adoption of new, lower risk\*† nicotine products is transforming the global market. The category of alternative products has expanded well

beyond early vapour devices to include tobacco heating products (THPs), nicotine pouches, and – more recently – herbal products designed for

heating. These innovations are increasingly popular among adult consumers seeking to continue using nicotine while avoiding the risks of

combusting tobacco.

This shift represents one of the most significant structural changes in the history of the nicotine sector. By 2028, the global number of adult smokers

is projected to fall by around 20 million, driven both by evolving social attitudes towards smoking and the accelerating consumer migration towards

RRPs\*†. RRPs are forecast to account for a steadily rising share of total industry revenue, reflecting both consumer demand and continued product

innovation.

Within this landscape, HPs are expected to grow by around 28% in volume over 2024–2029, while nicotine pouches are forecast to grow by

approximately 130%. Volume growth for vapour products is expected to remain inconsistent and broadly flat, reflecting continued legislative

uncertainty and regulatory grey areas in key markets.

**New Categories Regulation**

While alternative nicotine products are becoming more established across global markets, there remains significant divergence in how RRPs<sup>\*†</sup> are regulated.

These products' reduced-risk<sup>\*†</sup> potential has been recognised by regulators in the UK and New Zealand, both of which have publicly stated that RRPs<sup>\*†</sup>

represent a lower risk alternative to continued smoking. These countries have introduced proportionate regulatory frameworks that reflect this position while

maintaining strong safeguards to prevent underage access. Other markets, including Greece, the Czech Republic and Sweden, have also signalled cautious

support for Tobacco Harm Reduction as a complementary public health approach.

In contrast, several major markets – such as Brazil, Argentina, Mexico and India – remain sceptical of the potential public health benefits of RRPs<sup>\*†</sup>. These

countries have opted to impose broad restrictions or outright bans on product categories such as vapour products and tobacco heated products. Belgium and

France, similarly, have prohibited the sale of nicotine pouches, while Kazakhstan has implemented a ban on vapour products. In other cases, governments

have adopted more limited prohibitions – such as non-tobacco flavour bans or product-specific restrictions – that nevertheless reduce consumer choice.

It is increasingly important that this debate be informed by evidence, ensuring that millions of adult smokers, who would otherwise continue to smoke, are

not discouraged from switching to reduced-risk<sup>\*†</sup> alternatives.

The UK and Sweden illustrate how balanced, science-led regulations that make RRPs <sup>\*†</sup> available to adult consumers can accelerate Tobacco Harm

Reduction.

**The illicit RRP**<sup>\*†</sup> **market**

Stricter nicotine regulations globally have also created significant challenges for the legitimate industry. For example, in 2024 the illicit market is estimated to

have accounted for around 60% of global vapour product sales on a unit basis, being more than 76% of liquids (in litres) sold. We estimate that in the U.S.

illegal flavoured and single-use vapour products account for 70% of the total U.S. vapour market. This rapid growth has in part been fuelled by regulatory

gaps, particularly in regions with restrictive or unclear frameworks and inadequate enforcement. As a result, illicit products have proliferated the market.

**Beyond Nicotine**<sup>1</sup>

The Wellbeing and Stimulation category covers products that consumers are seeking to better manage their daily wellbeing. It is expected to grow

to £460 billion by 2030.

Some consumers are also beginning to look at alternative stimulant products that use nicotine-like analogues such as Ceretine, Metatine and Hippotine. These

substances replicate certain effects of nicotine. However, they are not regulated as such, placing analogue-based products in a regulatory grey area and

keeping them niche at present.

The nicotine and cannabis markets continue to evolve, and are expected to reach a combined US$1.2 trillion in value by 2029. While the growth of the adult-

use cannabis market is predominantly concentrated in the U.S., the global cannabis market is anticipated to expand as more countries reassess their

prohibitionist approaches.

In Europe, Germany became the first major EU Member State to legalise personal cultivation and possession for recreational use in 2024, with Luxembourg

and Malta taking similar steps and the Czech Republic legalising home cultivation and limited possession in 2026.

This shifting regulatory environment reflects a broader global trend, as governments assess the health, social and economic implications of legalisation and

seek to balance public health objectives with consumer preferences and emerging economic opportunities.

The global legal recreational cannabis market has grown, from around £5 billion (2019) to £13 billion (2024)<sup>2</sup>. It is predicted to continue to grow by 8%<sup>3</sup>

each year, with non-combustible formats driving this category growth.

We believe this is signalling a shift away from traditional smokable combustible cannabis formats into other, potentially less harmful, more progressive

consumption methods.

1. Unless otherwise stated, all data sources within this section are from Euromonitor International research published in 2025 and based on 2024 data (the latest full year available), unless otherwise stated.

All figures exclude China unless otherwise stated.

2. Euromonitor 2024 Market Sizing Data \| Global.

3. Euromonitor 2024 Market Sizing Data \| Global.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Cost of Living**

Despite easing inflation in some regions, the cost of living remains a global challenge. Persistent pressures on energy, food and housing – alongside currency

volatility and uneven wage growth – continued to influence consumption patterns worldwide in 2025. Entering 2026, higher living costs and constrained

disposable income are prompting consumers across both developed and emerging markets to reassess spending priorities and value perceptions.

**Global shifts in consumer behaviour**

Consumers are becoming more deliberate in their purchasing choices – trading down in some categories, delaying discretionary spending and seeking

promotions or discounts wherever possible. Meanwhile, health, wellbeing and digital lifestyle management continue to shape preferences, even in cost-

conscious contexts. In emerging economies, affordability is a key driver of access and inclusion, while in more mature markets consumers are balancing

price sensitivity with innovation, quality and sustainability.

**Balancing cost, health and value**

Brands that respond with affordable innovation, transparent value propositions and locally relevant offerings are best placed to maintain loyalty. For the

nicotine industry, ensuring that Reduced-Risk Products<sup>\*†</sup> (RRPs) remain accessible and competitively priced will be critical to supporting informed consumer

choice globally. Fiscal and regulatory frameworks that reflect relative risk potential can help sustain affordability, encourage switching for those who would

otherwise continue to smoke, and reinforce progress toward harm reduction in a cost-sensitive world.

**Geopolitics and Trade**

The global trading environment remains shaped by heightened geopolitical competition and economic realignment. As the policy shifts that followed the

2024 super-election cycle continue to take effect, governments are pursuing active approaches to industrial policy, supply-chain resilience and market access.

These dynamics will continue to influence trade flows and business strategy through 2026 and beyond, underscoring the importance of stability and

predictable global frameworks.

**Evolving trade architecture**

The world's major economies – notably the U.S., China and the EU – are advancing distinct approaches to trade, technology and regulation. This has

encouraged innovation and regional investment, while also creating growing complexity and uneven standards across markets. Greater international

alignment around product quality, safety and sustainability standards will be essential to ensure fair competition, consumer protection and a level playing

field within global markets.

**Building resilience**

As global trade becomes more fragmented, resilience will depend on flexibility, foresight and engagement with evolving regulations. Businesses that can

adapt quickly will be best placed to manage disruption and maintain market continuity. For the nicotine industry, this means ensuring agile supply chains,

strong compliance systems and active participation in global efforts to enhance consistency and mutual recognition of product standards.

**Notes:**

All data sources within this section are from Euromonitor International research published in 2025 and based on 2024 data (the latest full year available), unless otherwise stated. All figures exclude China unless

otherwise stated.

\*Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.

†Products sold in the U.S., including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.

**Results for the Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024**

**Group Operating Review**

**Accounting Policies**

The application of the accounting standards and the accounting policies adopted by the Group are set out in the Group Manual of Accounting Policies and

Procedures (GMAPP).

GMAPP includes the Group instructions in respect of the accounting and reporting of business activities, such as revenue recognition, asset valuations and

impairment testing, adjusting items, the accrual of obligations and the appraisal of contingent liabilities, which include taxes and litigation. Formal processes

are in place whereby central management and End Market management confirm adherence to the principles and the procedures and to the completeness of

reporting. Central analyses and revision of information are also performed to ensure and confirm adherence.

In order to prepare the Group's consolidated financial information in accordance with IFRS, management has used estimates and assumptions that affect the

reported amounts of revenue, expenses and assets, and the disclosure of contingent liabilities, at the date of the financial statements.

**Accounting Estimates**

The critical accounting estimates are described in note [1](#ia53e6ca54d894bde98684b8ab3a259a8_535) in Part III - Item 18 Notes on the Accounts and include:

–review of asset values, including goodwill and impairment testing;

–estimation of provisions, including as related to taxation and legal matters, specifically in respect of the Approved Plans in the Canadian litigation

settlement; and

–estimation and accounting for retirement benefit cost.

**Accounting Judgements**

The critical accounting judgements are described in note [1](#ia53e6ca54d894bde98684b8ab3a259a8_535) in Part III - Item 18 Notes on the Accounts and include:

–identification and quantification of adjusting items;

–determination as to the value of provisions and the exposures to contingent liabilities related to litigation (including as related to Canada) or other

outstanding claims;

–determination as to whether control (subsidiaries), joint control (joint arrangements), or significant influence (associates) exist in relation to investments

held by the Group;

–review of applicable exchange rates for transactions with and translation of entities in territories where there are restrictions on the free access to foreign

currency or multiple exchange rates; and

–the determination as to whether perpetual hybrid bonds should be classified as equity instead of borrowings.

**Revenue** 

Reported revenue decreased 1.0% to £25,610 million, negatively impacted by a translational foreign exchange headwind of 3.1%.

On a constant currency basis, revenue grew by 2.1%. Our performance was driven by:

British American Tobacco p.l.c. Form 20-F 2025<br>

–The U.S. where revenue increased 2.3% to £11,534 million (up 5.5% at constant rates of exchange) driven by combustibles, which benefitted from both

strong price/mix (including excise duty drawback) contributing +12.3% and the success of the Velo Plus launch (with Modern Oral up 297% to £317

million (up 310% at constant rates of exchange))..

These more than offset lower combustibles volume (down 7.7%) and lower revenue in Vapour (down 6.4% to £934 million, being a decrease of 3.4% at

constant rates of exchange);

–AME, which was up 0.7% to £9,309 million (up 3.3% at constant rates of exchange). This was led by combustibles price/mix (+7.2%) and the growth of

Modern Oral (up 18.3% to £800 million, an increase of 17.3% at constant rates of exchange), which drove New Categories up 4.8% to £1,813 million (up

4.3% at constant rates of exchange) despite a decline in Vapour of 11.2% to £543 million (down 11.4% at constant rates of exchange); and

–APMEA, which was down 10.9% to £4,767 million (down 7.2% at constant rates of exchange) due to regulatory and fiscal challenges in Australia and

Bangladesh, partially offset by higher revenue in Pakistan, Nigeria and Indonesia.

New Categories continued to grow, with revenue up 5.5% to £3,621 million (up 7.0% at constant rates of exchange) driven by Modern Oral (up 47.4% to

£1,165 million, an increase of 48.0% at constant rates of exchange). While HP was down 0.7% to £914 million, this was an increase of 1.0% at constant rates

of exchange)). However, Vapour declined 10.4% to £1,542 million (down 8.6% at constant rates of exchange) due to the continued impact of illicit products

mainly in the U.S. and Canada and regulatory and excise changes in the UK, Poland and France and market exits.

Refer to pages [34](#i71dd3cfa32dd46f092cff6b4620b47a0_445926) to [37](#i71dd3cfa32dd46f092cff6b4620b47a0_445928) for a discussion on regional performance and pages [37](#i71dd3cfa32dd46f092cff6b4620b47a0_445928) to [40](#i71dd3cfa32dd46f092cff6b4620b47a0_445929) for a further discussion on the performance by category.

**Profit From Operations**

Profit from operations on a reported basis was up 265%, with reported operating margin up 28.4 ppts to 39.0%. This was driven by lower adjusting items of

£1,575 million (compared to £9,154 million in 2024), largely due to:

–movements in respect of the Canadian litigation settlement. While 2024 included a charge of £6.2 billion, 2025 benefited from a net credit of £524 million

following a change to the forecasted Canadian combustibles industry performance. This reduced the provision by £708 million (credit) but was partly offset by a

goodwill impairment charge of £184 million, described on page [162](#i3ff2577315a54fdeba196007f9b3b20d_12596);

–the classification in 2025of the Group's business in Cuba as held-for-sale, recognising a charge of £235 million (2024: £74 million); and

–the partial release of the provision recognised in respect of an excise assessment in Romania (2025: £15 million credit; 2024: £449 million charge).

Translational foreign exchange was a headwind of 3.1% or £364 million.

On an adjusted, constant rates basis, profit from operations was up 0.4%, despite inflation on our product costs estimated to be 5.8% (or £315 million). This

increase was largely due tothe U.S., which was up 5.9%, and AME, up 1.7%. However, APMEA was down 17.9%, with the regional delivery largely driven

by the respective revenue performance discussed above.

The regional performance includes a total increase in New Categories contribution of £193 million to £442 million at constant rates.

Included within the Group's adjusted profit from operations was £308 million (2024: £520 million) related to the Canadian business, excluding New

Categories.

**Raw materials and other consumables** costs decreased 2.2% to £4,465 million in 2025, compared to £4,565 million in 2024.

Our reported costs are impacted by translational foreign exchange, which was a tailwind in 2025.

Our cost base was negatively impacted by the macro-economic headwinds, with inflation of £315 million (or 5.8%) in 2025mainly due to higher leaf prices

(impacted by adverse weather conditions) and manufacturing costs (labour and utilities). Results will likely continue to be impacted by inflationary forces

(particularly related to tobacco leaf). Such pressures were offset by efficiency initiatives delivering £327 million in 2025 in total savings.

We committed to deliver cost savings of over £1.2 billion in the three years to 2025 and have delivered £1.2 billion, in line with expectations.

Transactional foreign exchange was also a negative drag to our performance, at £96 million in 2025, due to movement in our operating currencies largely

against the US dollar.

**Employee benefit costs** increased 10.4% to £3,125 million (2024: £2,831 million). The increase in 2025 was driven by salary inflation, a £28 million charge

as the UK pension fund progressed towards a buy-out and a higher average overall headcount (2025: 50,290; 2024: 48,209), including an increased

headcount in the U.S. in line with reinvestment in trade capabilities.

**Depreciation, amortisation and impairment costs** declined by £554 million to £2,547 million in 2025 compared to £3,101 million in 2024. The charge

largely relates to the amortisation of certain U.S. combustibles brands over a useful economic life not exceeding 30 years from 1 January 2024.

However, the decrease was mainly due to a charge, in 2024, in respect of Camel Snus as the Group recognised an impairment charge of £646 million

reflecting the U.S. market dynamics as consumers of traditional snus products increasingly adopt Modern Oral variants and which did not repeat.

This was partly offset by the recognition in 2025 of goodwill impairment charges of £72 million in respect of Peru and £21 million (2024: £39 million) in

respect of Malaysia in response to the ongoing difficult trading conditions. Also in 2025, a goodwill impairment charge of £184 million was recognised to

reflect the revised forecast of the Group's Canadian business.

These are described in notes 4 and 7 in Part III - Item 18 Notes on the Accounts.

**Expenditure on research and development**, including employee benefit costs and depreciation, was £358 million in2025 (2024: £380 million), with a focus

on products that could potentially reduce the risk associated with smoking conventional cigarettes.

**Other operating income** decreased by £148 million to £192 million (2024: £340 million), as income in 2024 included the settlement of historical litigation

in respect of the Fox River (£132 million).

**Other operating expenses** decreased by £7,198 million to £5,895 million (2024: increase of £5,555 million to £13,093 million).

Both years have been impacted by the provision recognised in relation to the Canadian litigation settlement. In 2024, a charge of £6,203 million was

recognised. In 2025, this was partially reversed, following a change to the forecasted Canadian combustibles industry performance impacting the present

value of the future liability, partially offset by the finalisation of the terms of the settlement, resulting in a net credit of £708 million as described in note 24 in

Part III - Item 18 Notes on the Accounts.

Furthermore in 2024, the Group recognised a charge in respect of an excise assessment in Romania of £449 million, which was reduced by £15 million in

2025. The Group continued to invest in New Categories, maintaining the level of investment (in marketing spend and research and development) in line with 2024.

The Group incurred £49 million (2024: £66 million) of costs related to recycling (Take-Back and waste collection schemes).These charges are described in

note 33 in Part III - Item 18 Notes on the Accounts.

**Adjusting items** included within profit from operations totalled £1,575 million in 2025 (2024: £9,154 million). These mainly related to:

–trademark amortisation and impairment (2025: £1,584 million; 2024: £2,279 million) largely in respect of the impairment of certain of the U.S. acquired

brands as discussed within note 12 in Part III - Item 18 Notes on the Accounts.The decrease in 2025 was mainly due to the adjustment for the impairment

British American Tobacco p.l.c. Form 20-F 2025<br>

charge (in 2024) in respect of Camel Snus of £646 million. Also in 2025, a goodwill impairment charge of £184 million was recognised to reflect the

revised forecast of the Group's Canadian business with goodwill impairment charges recognised of £72 million in respect of Peru and £21 million (2024:

£39 million) in respect of Malaysia in response to the ongoing difficult trading conditions;

–a net credit of £708 million in 2025 (compared to a charge of £6,203 million in 2024), in respect of the settlement provision in Canada discussed earlier;

–a credit in 2025 of £15 million (compared to a charge of £449 million in 2024)in respect of an excise assessment in Romania;

–a charge of £66 million mainly in respect of the Fit2Win programme, which will simplify the way we work, with increased agility and embedding digital

decision making;

–a charge of £39 million which related to the loss of a distribution facility in Ukraine following a missile attack in the second half of 2025;

–a charge of £235 million related to the classification of the Group's business in Cuba as held-for-sale (2024: £74 million);

–other litigation costs of£66 million (2024: £157 million) which, in both periods, was mainly in respect of U.S. litigation costs including Engle progeny and other

health-related claims. Refer to note 6(d)in Part III - Item 18 Notes on the Accounts;

–a charge of £28 million recognised in respect of the proposed pension liability management programme as the UK pension fund progressed towards a buy-out;

–impairment charges in 2024 in respect of fixed assets related to the Group's head office in London (£75 million) that did not repeat; and

–a credit in 2024 as the Group settled the historical litigation in respect of the Fox River (£132 million).

**Adjusted profit from operations** is the Group's profit from operations before adjusting items referred to above.

Adjusted profit from operations decreased by 2.7% to £11,572 million(2024: £11,890 million). On a constant currency basis, this was an increase of 0.4%.

New Categories continued to improve their financial performance.

Included within the Group's adjusted profit from operations was £308 million (2024: £520 million) related to the Canadian business, excluding New

Categories.

**Operating Margin**

Operating margin in 2025 was up 28.4 ppts to 39.0% compared to 10.6% in 2024. This improvement was largely due to the net impact of lower one-off items

described earlier, including the net impact of charges in respect of the provision recognised in relation to the Canadian settlement.

Excluding the adjusting items and the impact of translational foreign exchange, in 2025, adjusted operating margin decreased by 80 bps to 45.2% from

46.0% in 2024 at constant rates of exchange. The decrease was driven by the difficult trading in high margin markets including Australia and Canada which

more than offset the improved financial performance of New Categories.

**Net Finance Costs**

In 2025, net finance costs were £1,819 million, an increase of £721 million on 2024 which were£1,098 million.

The increase in net finance costs was largely due to:

–a net credit in 2024 of £590 million related to the capped cash debt tender offers, which targeted series of low-priced, long-dated GBP-, EUR- and USD-

denominated bonds, under which the Group repurchased bonds prior to their maturity in an aggregate principal amount of £1.8 billion, including

£15 million of accrued interest, completed in May 2024 and, including other costs of £3 million;

–a charge, in 2025, of £112 million related to the unwinding of the discount on the provision associated with the Approved Plans in Canada;

–interest of £66 million (2024: £8 million) in respect of a tax provision in the Netherlands (described in note 8in Part III - Item 18 Notes on the Accounts);

partly offset by

–a net monetary gain of £63 million related to Venezuela, due to the continued application of hyperinflation accounting under IAS 29; and

–lower finance costs related to FII GLO of £30 million (2024: £61 million), discussed within note 10(b)in Part III - Item 18 Notes on the Accounts.

Before adjusting items described above, adjusted net finance costs were 3.8% higher at £1,649 million (2024: £1,589 million), an increase of 5.5% at constant

rates of exchange, as 2025 was also impacted by a translational foreign exchange tailwind due to the relative movement of sterling of 1.7%.

This was largely due to lower interest income mainly related to balances held in Canada, as £2.6 billion was paid in line with the Approved Plans (discussed

on page [162](#i3ff2577315a54fdeba196007f9b3b20d_12596)) with interest income (net of fair value gains on derivatives) in Canada reducing from £126 million in 2024 to £57 million in 2025.

The Group's average cost of debt was 5.0% in 2025, compared to4.9% in 2024.

In 2021, the Group issued perpetual hybrid bonds totalling €2 billion. During 2025, the Group repurchased €1 billion of perpetual hybrid bonds and issued a

further €1.2 billion of perpetual hybrid bonds. The perpetual hybrid bonds are recognised, in line with IAS 32 *Financial Instruments*, as equity. Interest on

such instruments is recognised in reserves rather than as a charge to the income statement in net finance costs. Accordingly, in 2025, in line with IAS 33

*Earnings Per Share*, £87 million (2024: £42 million) has been recognised as a deduction from earnings similar to non-controlling interests.

The Group has debt maturities of around £2.4 billion in 2026 and around £2.9 billion in 2027. Due to higher interest rates, net finance costs are expected to

increase as debts are refinanced.

**Associates and Joint Ventures**

Associates largely comprised the Group's shareholding in its Indian associate, ITC Limited (ITC) with investments in other associates including Organigram

Global Inc. (Organigram).

The Group's share of post-tax results of associates and joint ventures, included at the pre-tax level under IFRS, decreased from £1,900 million to

£1,681 million in 2025.

**ITC and ITC Hotels**

The Group's share of post-tax results in respect of ITC was 12.3% lower at £1,672 million (2024: £1,906 million).

In 2025, the Group recognised a credit of £333 million (net of tax) as an adjusting item, being the Group's share of a gain recognised by ITC following the

demerger of ITC's hotel business (ITC Hotels) that was completed on 1 January 2025. The Group's initial direct stake was approximately 15% and

recognised as a non-current investment on the balance sheet held at fair value through Other Comprehensive Income. In December 2025, the Group sold 9%

of ITC Hotels in a block trade with the retained direct stake reduced to 6.3%. Please see note 14 in Part III - Item 18 Notes on the Accounts. Net proceeds

from the sale amounted to £318 million.

However, the credit to the Income Statement was more than offset by a lower gain in respect of the sale by the Group of shares held in ITC. In 2025, the

Group sold 313.0 million ordinary shares held in ITC, realising a gain of £898 million. This compares to a gain of £1,361 million in 2024 when the Group

sold 436.9 million ordinary shares. The sale in 2025 represents 2.5% (2024: 3.5%) of ITC's ordinary shares.

The gains have been treated as an adjusting item in both years.

Included in the results for 2025 and 2024 are other adjusting items, which included a deemed gain of £6 million in 2025 (2024: £18 million), arising on the

deemed disposal of part of the Group's shareholding in ITC (due to issuances of ordinary shares under the ITC Employee Share Option Scheme).

British American Tobacco p.l.c. Form 20-F 2025<br>

As a result of the above, the Group's share of ITC has reduced from 25.45% (31 December 2024) to 22.91% at 31 December 2025.

**Organigram Global Inc.** 

On 28 February 2025, the Group made the third and final tranche investment in Organigram for CAD$42 million (£23 million), subscribing for 7,562,447

common shares and 5,330,728 preferred shares at a price of CAD$3.22 per share. As a result of this investment, BAT's ownership in Organigram increased to

36.8%.

**VST Industries Limited**

One of our associates, VST Industries Limited, recognised an adjusting gain in relation to a sale of land and buildings. The Group's share of this gain was

£3 million.

Excluding such adjusting items and the impact of translational foreign exchange, the Group's share of associates and joint ventures on an adjusted, constant

currency basis declined 8.6% in2025 to £475 million (2024: £521 million), largely driven by the reduction in the Group's shareholding in ITC.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Analysis of Profit from Operations, Net Finance Costs and Results from Associates and Joint Ventures - 2025** | **Analysis of Profit from Operations, Net Finance Costs and Results from Associates and Joint Ventures - 2025** | **Analysis of Profit from Operations, Net Finance Costs and Results from Associates and Joint Ventures - 2025** | **Analysis of Profit from Operations, Net Finance Costs and Results from Associates and Joint Ventures - 2025** | **Analysis of Profit from Operations, Net Finance Costs and Results from Associates and Joint Ventures - 2025** | **Analysis of Profit from Operations, Net Finance Costs and Results from Associates and Joint Ventures - 2025** |
|  |  |  |  | **At constant rates**<sup>1</sup> | **At constant rates**<sup>1</sup> |
| | **Reported**<br>**£m**<br>| **Adjusting** <br>**items**<br>**£m**<br>| **Adjusted** <br>**£m**<br>| **Impact of** <br>**exchange**<br>**£m**<br>| **Adjusted**<br>**at CC**<sup>1</sup><br>**£m**<br>|
| **Profit from operations** |  |  |  |  |  |
| U.S. | **4942** | **1601** | **6543** | **223** | **6766** |
| AME | **3433** | **(128)** | **3305** | **72** | **3377** |
| APMEA | **1622** | **102** | **1724** | **69** | **1793** |
| Total regions | **9997** | **1575** | **11572** | **364** | **11936** |
| Net finance costs | **(1819)** | **170** | **(1649)** | **(27)** | **(1676)** |
| Associates and joint ventures | **1681** | **(1239)** | **442** | **33** | **475** |
| Profit before tax | **9859** | **506** | **10365** | **370** | **10735** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Analysis of Profit from Operations, Net Finance Costs and results from Associates and Joint Ventures - 2024** | **Analysis of Profit from Operations, Net Finance Costs and results from Associates and Joint Ventures - 2024** | **Analysis of Profit from Operations, Net Finance Costs and results from Associates and Joint Ventures - 2024** | **Analysis of Profit from Operations, Net Finance Costs and results from Associates and Joint Ventures - 2024** |
|  | Reported<br>£m<br>| Adjusting <br>items<br>£m<br>| Adjusted<br>£m<br>|
| **Profit/(loss) from operations** |  |  |  |
| U.S. | 4087 | 2299 | 6386 |
| AME | (3464) | 6784 | 3320 |
| APMEA | 2113 | 71 | 2184 |
| Total regions | 2736 | 9154 | 11890 |
| Net finance costs | (1098) | (491) | (1589) |
| Associates and joint ventures | 1900 | (1379) | 521 |
| Profit before tax | 3538 | 7284 | 10822 |

---

**Notes:**

1. As translated in 2024 rates of exchange.

**Tax**

In 2025, the tax charge in the income statement was £2,094 million, compared to £357 million in 2024. The effective tax rates in the income statement were

therefore 21.2% in 2025 and 10.1% in 2024. These are affected by the inclusion of adjusting items described earlier and the associates and joint ventures' post-

tax profit in the Group's pre-tax results.

Excluding these items, the underlying tax rate for subsidiaries was 24.6% in 2025 and 24.9% in 2024. The marginal decrease in the underlying tax rate in 2025

largely reflects the mix of profits and changes in legislation (including the new Pillar Two rules, described in note 10(c) in Part III - Item 18 Notes on the

Accounts).

See the section Non-GAAP measures on page [46](#i71dd3cfa32dd46f092cff6b4620b47a0_446392) for the computation of underlying tax rates for the periods presented.

In September 2025, the Court of Appeal issued its judgment in respect of the ongoing tax disputes in the Netherlands. While further avenues of appeal are being

pursued, the Group has increased the provision by £171 million, with a total provision of £326 million at 31 December 2025. Please refer to the Tax Disputes

section within note 31 in Part III - Item 18 Notes on the Accounts of the Notes to the Accounts for further information.

**Earnings Per Share**

Profit for the year was £7,765 million, up 144.1% (2024: £3,181 million).

The improvement largely relates to the lower net impact in respect of the Canadian settlement described on page[162](#i3ff2577315a54fdeba196007f9b3b20d_12596).

In both 2025 and 2024, the Group undertook a share repurchase programme, totalling £1.1 billion and £0.7 billion respectively. These reduced the number of

shares (for the purposes of the EPS calculation) by 0.67% (2024: 0.62%).

After accounting for the movement in non-controlling interests in the year, basic earnings per share were 351.0p (2024: 136.7p).

Diluted earnings per share were 349.1p in 2025, compared to 136.0p in 2024.

Earnings per share (EPS) are impacted by the adjusting items discussed earlier.

Adjusted diluted EPS, as calculated in note 11 in Part III - Item 18 Notes on the Accounts, was 2.9% lower in 2025 at 352.1p, with 2024 at 362.5p.

Adjusted diluted EPS at constant rates would have been 0.7% ahead of 2024 at 365.0p.

Included within the Group's adjusted diluted EPS at constant rates was 12.2p (2024: 21.4p) related to the Canadian business, excluding New Categories.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Regional Review**

**United States** 

**Top Markets:**

The U.S. is a top market for Cigarettes, Vapour, Modern Oral and Traditional Oral products

---

| | | | |
|:---|:---|:---|:---|
| **Volume (units)** |  |  |  |
|  | **2025** | vs 2024 | 2024 |
| New Categories: |  |  |  |
| Vapour (units mn) | **262** | -8.8% | 287 |
| HP (sticks bn) | **—** |  |  |
| Modern Oral (pouches bn) | **3.5** | +249% | 1.0 |
| Traditional Oral (stick eq bn) | **4.8** | -8.9% | 5.3 |
| Cigarettes (bn sticks) | **43** | -7.7% | 47 |
| Other (bn sticks eq)<sup>\*</sup> | **1** | -0.1% |  |
| Total Combustibles | **44** | -7.7% | 47 |

---

**Notes:**

\*Other includes MYO/RYO.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Revenue (£m)** |  |  |  |  |  |  |
|  | **2025** | vs 2024 | 2025 | 2025 | vs 2024<br>(adj at cc)<br>| 2024 |
|  | **Reported** | % | FX | at CC | % | Reported |
| New Categories: |  |  |  |  |  |  |
| Vapour | **934** | -6.4% | **29** | **963** | -3.4% | 998 |
| HP | **—** |  | **—** | **—** |  |  |
| Modern Oral | **317** | +297% | **10** | **327** | +310% | 80 |
| Total New Categories | **1251** | +16.1% | **39** | **1290** | +19.8% | 1078 |
| Traditional Oral | **1006** | -5.0% | **31** | **1037** | -2.0% | 1058 |
| Total Smokeless | **2257** | +5.6% | **70** | **2327** | +9.0% | 2136 |
| Combustibles | **9218** | +1.4% | **295** | **9513** | +4.6% | 9094 |
| Other | **59** | +23.2% | **4** | **63** | +27.5% | 48 |
| Revenue | **11534** | +2.3% | **369** | **11903** | +5.5% | 11278 |
| % of Smokeless | **19.6%** | +70 bps |  |  |  | 18.9% |

---

**Revenue**

In 2025, revenue increased 2.3%, despite a translational foreign exchange headwind, negatively impacting revenue by 3.2%. On a constant currency basis,

which we believe reflects the operational performance, revenue increased 5.5%. This was driven by the performance in:

**Combustibles**

Revenue was up 1.4% to £9,218 million. On a constant currency basis, revenue increased 4.6%, as the positive impact of price/mix (including excise duty

drawback) of +12.3% more than offset a 7.7% reduction in volume, compared to the industry volume decline of 7.4%.

The U.S. combustibles industry continues to be negatively impacted by the adult nicotine consumer migration to alternative nicotine products (Vapour and

pouches). The level of poly-usage for combustibles consumers continued to increase as part of the consumer migration journey, reaching 53% in 2025, up 4

ppts from 2023. In addition, continued consumer affordability pressure resulted in downtrading to the deep-discount category (in which the Group is not

present).

Our volume share was down 10 bps while value share was up 30 bps following the commercial actions taken in 2024 to deliver sustainable value.

**New Categories**

Revenue was up 16.1% to £1,251million, an increase of 19.8% (at constant rates of exchange), driven by:

–**Modern Oral**, where revenue increased by 297% (or 310% at constant rates of exchange), driven by higher volume (up 249%), following the successful

national roll-out of Velo Plus. Accordingly, our category volume share was up 11.6 ppts to 18.0% with value share growth of 9.1 ppts to 13.1%. This

performance has positioned Velo as the fastest growing brand in the category, reaching the number 2 position in both volume and value share.

While we await the outcome of our PMTA submission for new Velo variants, we have invested in higher capacity to support our sustainable growth agenda.

In addition, in August 2025, we expanded distribution of Grizzly nicotine pouches, reaching 1.8% national share by December 2025 - successfully capturing

Grizzly Traditional Oral consumers interacting with the Modern Oral category.

This was partly offset by:

–**Vapour**, where the U.S. is the world's largest market. Revenue was down 6.4%, a decline of 3.4% at constant rates of exchange, as price/mix (+5.4%) was

offset by an 8.8% decline in consumables volume driven by an industry decline of c.9% mainly due to the continued impact of illicit single-use vapour

products. There are encouraging signs for Vuse with the brand back to revenue growth in the second half of 2025 driven by increased enforcement at a

Federal and State level. We remain optimistic that Vuse will benefit as the authorities continue with enforcement initiatives in 2026. We maintained

leadership in value share with an increase in value share of 2.0 ppts to 51.7%\*; and

\*Based on estimated value share for Vapour in tracked channels (i.e., value share of rechargeable closed systems consumables and disposables sales in retail) in the Top Vapour markets. Top Vapour markets are defined

as the Top markets by industry revenue, being the U.S., Canada, the UK, France, Germany, Poland and Spain. These Top markets account for c.80% of total industry vapour revenue (rechargeable closed systems

consumables and disposables in tracked channels) in 2024.

**Traditional Oral**

Revenue was down 5.0% (down 2.0% on a constant currency basis), as price/mix (+6.9%) was more than offset by lower volume (down 8.9%) due to the

continued Poly-use<sup>\*</sup> of Modern Oral by Traditional Oral consumers.

British American Tobacco p.l.c. Form 20-F 2025<br>

Value share in the U.S. decreased 40 bps, with volume share down 40 bps, negatively impacted by consumer migration predominantly in the aspirational

premium segment, where Grizzly is positioned.

\*Refers to consumers consuming two or more tobacco and/or nicotine products.

**Profit from Operations**

Reported profit from operations increased by 20.9% to £4,942 million (2024: £4,087 million), as both an impairment charge of £646 million in respect of

Camel Snus (see page [31](#i71dd3cfa32dd46f092cff6b4620b47a0_505502)) and income (£132 million) related to Fox River recognised in 2024 did not repeat. Accordingly, reported operating margin was up

6.6 ppts to 42.8% (2024: 36.2%).

Excluding adjusting items (largely in respect of amortisation, impairment charges and income related to Fox River recognised in 2024) and a translational

foreign exchange headwind of £223 million, our performance was positively impacted by the growth in revenue (described above).

At constant rates of exchange, adjusted profit from operations was up 5.9% to £6,766 million, with adjusted operating margin up 20 bps.

**Update on regulation**

We are encouraged by the FDA's actions, the implementation of vapour directories and enforcement actions in 18 states, representing 48% of the legal

Vapour industry<sup>^</sup>. There are positive signs of illicit disposables decline and legal industry recovery in eight states (approximately 22% of the legal industry<sup>^</sup>).

However, we believe more effective enforcement is needed to drive a meaningful impact and legalise the vapour industry. This is why we took the proactive

step of filing two complaints with the U.S. International Trade Commission. One of those complaints is based on patent infringement while the other is based

on unfair trade practices.

**Notes:**

^Data sourced from tracked retail channels.

Also, as stated on the pages above, based upon the published science, we believe that a ban on menthol cigarettes would negatively affect, not benefit, public

health. We believe a ban on menthol is contrary to the FDA's stated goal of reducing the health effects of tobacco use.

**AME** 

**Top Markets:**

Cigarettes: Brazil, Germany, Mexico and Romania

HP: Germany, Greece, Italy, Poland, Portugal, Romania, Spain and the Czech Republic

Vapour: Canada, France, Germany, Poland, Spain and the UK

Modern Oral: Denmark, Norway, Poland, Sweden, Switzerland and the UK

---

| | | | |
|:---|:---|:---|:---|
| **Volume (units)** |  |  |  |
|  | **2025** | vs 2024 | 2024 |
| New Categories: |  |  |  |
| Vapour (units mn) | **244** | -11.6% | 276 |
| HP (sticks bn) | **8** | -3.4% | 8 |
| Modern Oral (pouches bn) | **7.5** | +19.0% | 6.3 |
| Traditional Oral (stick eq bn) | **0.7** | -10.3% | 0.8 |
| Cigarettes (bn sticks) | **227** | -4.5% | 238 |
| Other (bn sticks eq)<sup>\*</sup> | **10** | -12.4% | 11 |
| Total Combustibles | **237** | -4.9% | 249 |

---

**Notes:**

**\***Other combustibles includes MYO/RYO.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Revenue (£m)** |  |  |  |  |  |  |
|  | **2025** | vs 2024 | 2025 | 2025 | vs 2024<br>(adj at cc)<br>| 2024 |
|  | **Reported** | % | FX | at CC | % | Reported |
| New Categories: |  |  |  |  |  |  |
| Vapour | **543** | -11.2% | (1) | 542 | -11.4% | 611 |
| HP | **470** | +6.2% | 1 | 471 | +6.2% | 443 |
| Modern Oral | **800** | +18.3% | (6) | 794 | +17.3% | 676 |
| Total New Categories | **1813** | +4.8% | (6) | 1807 | +4.3% | 1730 |
| Traditional Oral | **37** | +9.9% | (1) | 36 | +5.1% | 34 |
| Total Smokeless | **1850** | +4.9% | (7) | 1843 | +4.4% | 1764 |
| Combustibles | **6974** | -0.9% | 226 | 7200 | +2.3% | 7039 |
| Other<sup>1</sup> | **485** | +10.8% | 20 | 505 | +15.7% | 438 |
| Revenue | **9309** | +0.7% | 239 | 9548 | +3.3% | 9241 |
| % of smokeless | **19.9%** | +80 bps |  |  |  | 19.1% |

---

**Note:**

1. Other revenue in AME largely relates to sales of leaf to external parties and revenue from warehousing and distribution of other fast moving consumer goods.

**Revenue**

Reported revenue was up 0.7%, negatively impacted by a translational foreign exchange headwind of 2.6%.

On a constant currency basis, which we believe reflects the operational performance, revenue increased by 3.3% to £9,548 million.

This was driven by the performance in:

**Combustibles**

Revenue was down 0.9% to £6,974 million, negatively impacted by a translational foreign exchange headwind of 3.2%.

British American Tobacco p.l.c. Form 20-F 2025<br>

On a constant currency basis, revenue was 2.3% higher, largely driven by higher volume and pricing in Türkiye, Brazil and Mexico. These factors combined

with robust pricing in Romania to more than offset a reduction in revenue in Canada (due to lower price/mix and volume) and Germany (driven by lower

volume).

Cigarette value share was down 70 bps in 2025.

Cigarette volume share grew 10 bps with volume share up in Brazil and Mexico partially offset by Romania and Germany.

**New Categories**

Revenue was up 4.8% to £1,813 million, an increase of 4.3% at constant rates of exchange, driven by:

**–Modern Oral**, where we are category leaders, with volume up19.0%. Revenue grew 18.3% or17.3% at constant rates of exchange, while volume share of

the Modern Oral category was down 20 bps.

The volume and revenue growth reflects the strength of our portfolio in both established oral markets across Scandinavia, and markets that are more recent

adopters of Modern Oral such as the UK, Switzerland and Austria;and

–**HP**(revenue up 6.2% or 6.2% at constant rates of exchange),as higher revenue in Italy and Germany was partly offset by lower revenue in Romania largely

due to the prioritisation of resource allocation ahead of the wider roll-out of glo Hilo in the region.

These more than offset a decline from:

**–Vapour** (revenue down 11.2% or 11.4% at constant rates of exchange), largely driven by a decline in revenue in Canada (due to the continued lack of

enforcement against illegal flavoured vapour products) and regulatory and excise changes in the UK, Poland and France. Our value share\* leadership was

down 60 bps with gains in Germany more than offset by a value share decline in Canada.

Our new premium innovation, Vuse Ultra, offers consumers a highly differentiated, connected and customisable experience. We are encouraged by the

early performance in Canada, Germany and France.

Our strategic focus is to drive growth in Vapour through premiumisation of rechargeable closed system products (including via Vuse Ultra) while

approaching the single-use product category, where relevant, in a responsible way.

\*Based on estimated value share for Vapour in tracked channels (i.e., value share of rechargeable closed systems consumables and disposables sales in retail) in the Top Vapour markets.

**Profit from Operations**

Reported profit from operations increased to a profit of £3,433 million (from a loss of £3,464 million in 2024), largely due tomovements in respect of the

Canadian litigation settlement. While 2024 included a charge of £6.2 billion, 2025 benefited from a net credit of £524 million following a change to the

forecasted Canadian combustibles industry performance. This reduced the provision by £708 million (credit) but was partly offset by a goodwill impairment

charge of £184 million.Please see note 6(c) and 24 (for more information on the movement in the provision) and note 12(e)(vii) (for more information on

goodwill) in Part III - Item 18 Notes on the Accounts.

Our performance was also negatively impacted by:

–the classification in 2025of the Group's business in Cuba as held-for-sale, recognising a charge of £235 million (2024: £74 million) as discussed on page

[170](#i286a0e8550a94b78b7aad7f3fd44fa43_50009);

–a charge of £39 million which related to the loss of a distribution facility in Ukraine following a missile attack in the second half of 2025; and

–a goodwill impairment charge in Peru (£72 million) recognised due to the ongoing difficult trading conditions.

These were partially offset by a credit of £15 million in respect of an excise audit in Romania (2024: £449 million charge). Other fixed asset charges of £75

million in 2024 did not repeat.

Our performance was also negatively impacted by a translational foreign exchange headwind of £72 million or 2.2%.

Excluding the impact of currency and adjusting items (described above), the regional performance was driven by:

–Brazil (due to combustibles with higher volume and pricing);

–Romania (driven by pricing in combustibles); and

–Türkiye (led by the revenue performance in combustibles).

The increase was also due an improved financial performance across our New Categories; notably in Modern Oral (driven by Sweden, Switzerland and

Italy), Vapour (which became profitable on a category contribution basis) and a reduction in losses in HP driven by resource allocation.

At constant rates of exchange, adjusted profit from operations was up 1.7% in 2025.

Included within the Region's adjusted profit from operations was £308 million (2024: £520 million) related to the Canadian business, excluding New

Categories.

**APMEA** 

**Top Markets:**

Cigarettes: Japan and Pakistan

HP: Japan and South Korea

---

| | | | |
|:---|:---|:---|:---|
| **Volume (units)** |  |  |  |
|  | **2025** | vs 2024 | 2024 |
| New Categories: |  |  |  |
| Vapour (units mn) | **32** | -38.2% | 53 |
| HP (sticks bn) | **12** | -3.9% | 13 |
| Modern Oral (pouches bn) | **1.2** | +24.7% | 1.0 |
| Traditional Oral (stick eq bn) | **—** | 0.0% | 0.0 |
| Cigarettes (bn sticks) | **195** | -11.6% | 220 |
| Other (bn sticks eq)<sup>\*</sup> | **1** | -26.9% | 2 |
| Total Combustibles | **196** | -11.7% | 222 |

---

**Note:**

\*Other combustibles includes MYO/RYO.

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Revenue (£m)** |  |  |  |  |  |  |
|  | **2025** | vs 2024 | 2025 | 2025 | vs 2024 (adj at <br>cc)<br>| 2024 |
|  | **Reported** | % | FX | at CC | % | Reported |
| New Categories: |  |  |  |  |  |  |
| Vapour | **65** | -41.2% | 3 | 69 | -39.4% | 112 |
| HP | **444** | -7.0% | 12 | 465 | -3.8% | 478 |
| Modern Oral | **48** | +39.8% | 1 | 47 | +44.2% | 34 |
| Total New Categories | **557** | -10.6% | 16 | 581 | -7.6% | 624 |
| Traditional Oral | **—** | 0.0% |  |  | 0.0% |  |
| Total Smokeless | **557** | -10.6% | 16 | 581 | -7.6% | 624 |
| Combustibles | **4009** | -11.9% | 177 | 4199 | -8.3% | 4552 |
| Other | **201** | +16.3% | 12 | 209 | +23.7% | 172 |
| Revenue | **4767** | -10.9% | 205 | 4989 | -7.2% | 5348 |
| % of smokeless | **11.7%** | Flat |  |  |  | 11.7% |

---

**Revenue**

In 2025, revenue declined 10.9% to £4,767 million.

Translational foreign exchange was a headwind of 3.7%.

On a constant currency basis, which we believe reflects the operational performance, revenue was down 7.2%. This was largely driven by:

**Combustibles**

Revenue was down 11.9% to £4,009 million. On a constant currency basis, revenue declined 8.3%, largely due to the regulatory and fiscal challenges

impacting combustibles in Australia and Bangladesh, partly offset by higher combustibles revenue in Nigeria, Indonesia and Pakistan.

Our combustibles value share declined 40 bpsin 2025 with volume share down 40 bps as volume share gains in Pakistan were more than offset by reductions

in Japan.

**New Categories**

New Categories revenue was down 10.6% to £557 million, a decline of 7.6% at constant rates of exchange.

Revenue grew in Modern Oral (up 39.8% to £48 million, an increase of 44.2% at constant rates of exchange) with strong revenue growth in Global Travel

Retail (GTR), Pakistan, Japan and South Africa.

However, this was more than offset by a reduction in:

–HP (down 7.0% to £444 million, or a decline of 3.8% at constant rates of exchange), largely driven by Japan (which remains highly competitive alongside

the continued phase-out of our legacy super-slims platform) and South Korea, partially offset by a strong performance in Kazakhstan; and

–Vapour, as volume was down 38.2%, leading to a 41.2% reduction in revenue to £65 million, being a decline 39.4% at constant rates of exchange. This

was largely driven by lower volume in South Africa and New Zealand and by the Group exiting the category in a number of markets (including Malaysia

and Saudi Arabia).

**Profit from Operations**

Profit from operations was down 23.3% to £1,622 million (2024: £2,113 million), including a translational foreign exchange headwind of £69 million or

3.2%. The lower profit from operations was mainly driven by the revenue movements above.

In 2025, the Group recognised a further impairment charge of £21 million (2024: £39 million) in respect of Malaysia in response to the ongoing difficult

trading conditions.

Excluding adjusting items and translational foreign exchange, adjusted profit from operations at constant rates was down 17.9% to £1,793 million driven by:

–Australia, due to continued increases in the illicit segment which we estimate now accounts for more than 65% of the combustibles industry volume, with

the duty paid combustibles industry volume down more than 40% in 2025; and

–Bangladesh, driven by the increase in excise and minimum price in January 2025, necessitating an increase in consumer prices by 20-30%, which resulted

in a reduction in the duty paid combustibles industry volume by more than 20%.

However, these were partly offset by an increase in Pakistan (led by the growth of Modern Oral and pricing in combustibles), Nigeria (driven by higher

combustibles volume and improved combustibles pricing) and Indonesia (driven by higher combustibles volume and pricing).

For more details on the segmental analysis, please refer to note [2](#ia53e6ca54d894bde98684b8ab3a259a8_538) in Part III - Item 18 Notes on the Accounts.

Please refer to page [28](#i71dd3cfa32dd46f092cff6b4620b47a0_565423) for further details on our views regarding regulationaffecting the Group's results as well as for a discussion on regulatory

developments in Combustibles during 2025 and 2024.

**Category Review**

**Vapour - Vuse**

Vapour consumables volume declined 12.6% to 538 million units in2025.

Led by Vuse, BAT maintained global Vapour value share\* leadership with an increase in full-year closed system value share of 60 bps vs 2024.

Consumers of our Vapour products increased by 0.6 million to 12.7 million.

---

| | | |
|:---|:---|:---|
| **Proportion of Vapour revenue by region** | **2025**<br>**£m** <br>| 2024<br>£m <br>|
| U.S. | **934** | 998 |
| AME | **543** | 611 |
| APMEA | **65** | 112 |
| **Total** | **1542** | 1721 |

---

Group Vapour performance was negatively impacted by:

British American Tobacco p.l.c. Form 20-F 2025<br>

–The U.S., the world's largest Vapour market, where Group volume was down 8.8% mainly due to the continued proliferation of illicit single-use vapour

products. Accordingly, revenue was down 6.4% (or 3.4% on a constant currency basis). However, we are encouraged by recent signs of Vuse returning to

revenue growth in the second half of 2025 in the U.S. supported by increased enforcement against illicit single-use vapour products. We maintained

leadership in value share with an increase in value share of 2.0 ppts to 51.7%\*;

–AME, where revenue was 11.2% lower (a decline of 11.4% on a constant currency basis), largely driven by a decline in revenue in Canada (due to the

continued lack of enforcement against illegal flavoured vapour products) and regulatory and excise changes in the UK, Poland and France. Our value

share\* leadership was down 60 bps with gains in Germany more than offset by a value share decline in Canada; and

–APMEA, where volume declined 38.2%, leading to a 41.2% reduction in revenue (being down 39.4% at constant rates), largely driven by lower volume in

South Africa and New Zealand and by the Group exiting the category in a number of markets (including Malaysia and Saudi Arabia).

Our new premium innovation, Vuse Ultra, offers consumers a highly differentiated, connected and customisable experience. We are encouraged by the early

performance in Canada, Germany and France.

\*Based on estimated value share for Vapour in tracked channels (i.e., value share of rechargeable closed systems consumables and disposables sales in retail) in the Top Vapour markets. Top Vapour markets are defined

as the Top markets by industry revenue, being the U.S., Canada, the UK, France, Germany, Poland and Spain. These Top markets account for c.80% of total industry vapour revenue (rechargeable closed systems

consumables and disposables in tracked channels) in 2024.

**Heated Products (HP) - glo**

---

| | | |
|:---|:---|:---|
| **Proportion of Heated Products revenue by region** | **2025**<br>**£m** <br>| 2024<br>£m <br>|
| U.S. | **0** | 0 |
| AME | **470** | 443 |
| APMEA | **444** | 478 |
| **Total** | **914** | 921 |

---

In 2025, total consumables volume declined3.7% to 20.1 billion sticks.

In 2025, glo HP category volume share in the Top markets\* declined 1.5 ppts impacted by competitive pressure in Japan and phase-out of legacy super-

slims.

Revenue was marginally lower, down 0.7% to £914 million (2024: £921 million). However, excluding the impact of the relative movements in sterling, at

constant rates of exchange revenue increased 1.0% in 2025 driven by Quality Growth focus in the largest profit pools.

In AME, volume was down 3.4%, with revenue up 6.2% (being an increase of 6.2% at constant rates),as higher revenue in Italy and Germany was partly

offset by lower revenue in Romania largely due to the prioritisation of resource allocation ahead of the wider roll-out of glo Hilo in the region.

In APMEA, volume was down 3.9%, with revenue down 7.0%, or 3.8% at constant rates, largely driven by Japan (which remains highly competitive

alongside the continued phase-out of our legacy super-slims platform) and South Korea, partially offset by a strong performance in Kazakhstan.

glo Hilo and glo Hilo Plus are our new premium connected devices which provide adult consumers with superior dual-heating technology and an integrated

display, combined with a new consumables range, Virto and tobacco-free Rivo. We have continued the roll-out through 2025, with launches in Japan, Poland

and Italy.

\*Volume share is based upon the Top HP markets, which are defined as the Top markets by industry revenue. Top markets are Japan, South Korea, Italy, Germany, Greece, Poland, Romania, the Czech Republic,

Spain and Portugal. These Top markets account for c.80% of total industry HP revenue in 2024.

**Modern Oral - Velo**

---

| | | |
|:---|:---|:---|
| **Proportion of Modern Oral revenue by region** | **2025**<br>**£m** <br>| 2024<br>£m <br>|
| U.S. | **317** | 80 |
| AME | **800** | 676 |
| APMEA | **48** | 34 |
| **Total** | **1165** | 790 |

---

2025 maintained the momentum from 2024 with growth in volume and value. Volume was up 47.1% to 12.2 billion pouches.

Revenue increased 47.4% to £1,165 million. Excluding the impact of foreign exchange, this was an increase of 48.0% in 2025 supported by price/mix of

0.9%.

Volume share of the Modern Oral category in our Top markets\*\* was 33.4%, up 7.5 ppts compared to 2024. This was driven by the U.S. where our volume

share of Modern Oral increased by 11.6 ppts to 18.0%.

In AME, where we are category leaders, our volume was up 19.0%, with revenue up 18.3% (up 17.3% at constant rates) while volume share of the Modern

Oral category was down 20 bps.

The volume and revenue growth reflects the strength of our portfolio in both established oral markets across Scandinavia, and markets that are more recent

adopters of Modern Oral such as the UK, Switzerland and Austria.

In the U.S., revenue increased by 297% (or 310% at constant rates), driven by higher volume (up 249%), following the successful national roll-out of Velo

Plus. Accordingly, our category volume share was up 11.6 ppts to 18.0% with value share growth of 9.1 ppts to 13.1%. This performance has positioned Velo

as the fastest growing brand in the category, reaching the number 2 position in both volume and value share.

While we await the outcome of our PMTA submission for new Velo variants, we have invested in higher capacity to support our sustainable growth agenda.

In addition, in August 2025, we expanded distribution of Grizzly nicotine pouches, reaching 1.8% national share by December 2025 - successfully capturing

Grizzly Traditional Oral consumers interacting with the Modern Oral category.

In APMEA, our volume grew 24.7% and our revenue grew 39.8% (up 44.2% at constant rates), with strong revenue growth in Global Travel Retail (GTR),

Pakistan, Japan and South Africa.We continue to seek opportunities and develop the category in other markets as we believe that Modern Oral is an exciting

longer-term opportunity to commercialise reduced-risk products<sup>\*†</sup>.

\*Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.

\*\*Volume share is based upon the Top Modern Oral markets which are defined as the Top markets by industry revenue, being the U.S., Sweden, Denmark, Norway, Switzerland, the UK and Poland, accounting for c.90% of

total industry Modern Oral revenue in 2024.

†Products sold in the U.S., including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Traditional Oral**

---

| | | |
|:---|:---|:---|
| **Proportion of Traditional Oral revenue by region** | **2025**<br>**£m** <br>| 2024<br>£m <br>|
| U.S. | **1006** | 1058 |
| AME | **37** | 34 |
| APMEA | **0** | 0 |
| **Total** | **1043** | 1092 |

---

Total revenue decreased 4.5% to £1,043 million from£1,092 million in 2024.

Translational foreign exchange was a headwind in 2025 of 2.8%due to the relative movement of sterling.

On a constant rates basis, revenue fell 1.7% in 2025. In 2025, volume declined 9.1% to 5.5 billion stick equivalents. While pricing remained strong (2025:

+7.4%; 2024: +4.8%), this was more than offset by the volume decline.

In the U.S. (which accounts for 96% of Group revenue from the category), revenue declined 5.0% or 2.0% at constant rates of exchange, as price/mix was

insufficient to offset the volume decline of 8.9%, due to the continued Poly-use^ with Modern Oral.

Value share in the U.S. decreased 40 bps, with volume share down 40 bps, negatively impacted by consumer migration predominantly in the aspirational

premium segment, where Grizzly is positioned.

Outside the U.S., revenue grew 9.9% or 5.1%at constant rates of exchange as pricing more than offset a 10.3% decline in volume in 2025.

Due to the ongoing U.S. market dynamics, as discussed on page [131](#i1fcb5421955f4472b9cc597f7dc9fc5b_31135), in 2024, the Group recognised an impairment charge of £646 million in respect of the

carrying value of Camel Snus. This reflects the reduced sales as consumers switch to alternative products including Modern Oral. Commencing 1 January

2025, Camel Snus has been assigned a 20-year useful economic life and commenced amortisation from that date which approximates to £22 million annually.

^Refers to consumers consuming two or more tobacco and/or nicotine products.

**Combustibles**

**Performance Summary** 

---

| | | |
|:---|:---|:---|
| **Proportion of Combustibles revenue by region** | **2025**<br>**£m** <br>| 2024<br>£m <br>|
| U.S. | **9218** | 9094 |
| AME | **6974** | 7039 |
| APMEA | **4009** | 4552 |
| **Total** | **20201** | 20685 |

---

Group cigarette volume was down 7.9% to 465 billion sticks as volume growth in Türkiye, Nigeria, Indonesia and Brazil was more than offset by lower

volume in a number of markets, mainly driven by Bangladesh, the U.S. and Poland and market exits (including Mali).

Revenue from combustibles declined 2.3% to £20,201 million, up 1.0% at constant rates of exchange as the Group benefitted from a robust price/mix

(including U.S. excise duty drawback) of +9.1%. This was partly offset by the lower volume (down 8.1%).

Our revenue performance was driven by:

–the U.S., where revenue increased 1.4% or 4.6% at constant rates of exchange, as the positive impact of price/mix (including excise duty drawback) of

+12.3% more than offset a 7.7% reduction in volume, compared to the industry volume decline of 7.4%. Our volume share was down 10 bps while value

share was up 30 bps following the commercial actions taken in 2024 to deliver sustainable value;

–AME, where revenue was down 0.9% due to translational foreign exchange. At constant rates of exchange, revenue was 2.3% higher, largely driven by

higher volume and pricing in Türkiye, Brazil and Mexico. These factors combined with robust pricing in Romania to more than offset a reduction in revenue

in Canada (due to lower price/mix and volume) and Germany (driven by lower volume); and

–APMEA, where revenue was down 11.9% or 8.3% at constant rates of exchange, due to regulatory and fiscal challenges impacting combustibles in

Australia and Bangladesh, partly offset by higher combustibles revenue in Nigeria, Indonesia and Pakistan.

**Value and Volume Share**

Group cigarette value share was flat in 2025 despite growth in the U.S. (up 30 bps), Brazil and Mexico. This was offset by lower cigarette value share in

Germany and Romania.

Group cigarette volume share was down 10 bps in 2025. The Group grew volume share in Brazil and Mexico. However, this was more than offset by lower

volume share in the U.S. (down 10 bps) and reductions in Germany, Romania and Japan.

Volume and value share are based upon the Top cigarette markets which are defined as the Top markets by industry revenue, being the U.S., Japan, Brazil, Germany, Pakistan, Mexico and Romania, accounting for c.60% of

total industry cigarettes revenue in 2024.

**Strategic Brand Performance**

In 2025, strategic cigarette brands' value share grew 10 bps:

–Dunhill's overall value share was flat despite declines in Brazil and Romania. Volume was 2.7% lower, largely driven by Bulgaria and South Korea and our

exit from Mali;

–Kent's value share was down 10 bps as growth in Brazil was more than offset by lower value share in Romania and Japan. Volume was up 1.8%. Kent

increased volume in Türkiye and Brazil, which was partly offset by lower volume in Japan and Romania;

–Lucky Strike's value share grew 50 bps, as growth in the U.S. and Brazil more than offset lower value share in Germany and Mexico. Volume declined

2.0%driven by Japan and Germany. This more than offset higher volume in Indonesia;

–Rothmans' value share was flat, as growth in Brazil was offset by lower value share in Romania and Pakistan. Volume was 5.7% lower due to lower volume

in Poland, Ukraine, Zambia and Colombia. This more than offset higher volume in Nigeria; and

–Pall Mall's value share was 20 bps lower as growth in Romania, Pakistan and Mexico was more than offset by lower value share in Germany and the U.S.

Volume was down 7.7%driven by lower volume in Poland, Nigeria, Pakistan, Germany and the U.S.

The Group's U.S. domestic strategic combustibles portfolio value share was up 40 bps driven by the performance of Lucky Strike and Natural American

Spirit:

British American Tobacco p.l.c. Form 20-F 2025<br>

–Newport, with value share down 30 bps, and volume 9.9% lower;

–Natural American Spirit performed well with value share up 20bps. Volume was 3.7% down; and

–Camel, with value share down 10 bps and volume 13.5% down.

Volume of other tobacco products (OTP) declined 14.0% to 12 billion sticks equivalent, being 2.3% of the Group's combustible portfolio.

**Beyond Nicotine**

Btomorrow Ventures (BTV), the corporate venture capital arm of BAT, has completed 30+ investments since its launch in 2020.

BTV provides strategic value to the next generation of innovative companies, to support the Group's purpose of creating A Better Tomorrow™.

In 2025, BTV's Fund II, an additional £200 million second fund commitment from BAT announced in 2024, was repositioned.

Fund II now has a broader mandate, focusing on investments in:

–Smokeless nicotine products;

–business transformation and capability enablers;

–sustainability; and

–a continued focus on Wellbeing and Stimulation.

In 2025, BTV made five new investments, including Bloom Biorenewables and China Materialia Evergreen Fund.

In addition to this, BTV has continued to support its portfolio companies through seven follow-on rounds to the value of £7 million, including investments in

Awake, Mais Mu, Moment and Parallel Dots.

In November 2023, the Group announced the signing of an agreement for a further proposed investment in Organigram of CAD$125 million (£74 million),

payable across three tranches, with approvals received from the shareholders of Organigram on 18 January 2024.

In February 2025, we paid the last of the three tranches of the Group's follow-on investment.

The Group's equity position at 31 December 2025was 36.8% (restricted to 30% voting rights).

The Group has continued to explore Beyond Nicotine organically through our subsidiary, The Water Street Collective Ltd.

Following a series of pilot launches of our own functional wellness shot brand, Ryde, we are continuing commercial expansion. Our scientifically formulated

range of Energy, Focus and Relax are available in three markets – Australia, Canada and the U.S. Our recent innovations of Sleep and Exercise shots are in

selected distribution across the U.S. and Australia.

While immaterial to the Group's results, Ryde is not sold in Canada by ITCAN but by another Group subsidiary. Accordingly, the performance does not form

part of the future settlement payments due as part of the Approved Plans, described in note 24 in Part III - Item 18 Notes on the Accounts.

**Dividends**

The Group pays its dividends to shareholders over four quarterly interim dividends. Quarterly dividends provide shareholders with a more regular flow of

dividend income and allow the Company to spread its substantial dividend payments more evenly over the year, aligning better with the cash flow generation

of the Group and so enable the Company to fund the payments more efficiently.

The Board has declared an interim dividend of 245.04p per ordinary share of 25p, payable in four equal quarterly instalments of 61.26p per ordinary share in

May 2026, August 2026, November 2026 and February 2027. This represents an increase of 2.0% on 2024 (2024: 240.24p per share, up 2.0%) and a payout

ratio, on 2025 adjusted diluted earnings per share, of 69.6% (2024: 66.3%).

The quarterly dividends will be paid to shareholders registered on either the UK main register or the South Africa branch register and to ADS holders, each

on the applicable record dates.

Under IFRS, the dividend is recognised in the year that it is approved by shareholders or, if declared as an interim dividend, by Directors, in the period that it

is paid.

The cash flow, prepared in accordance with IFRS, reflects the total cash paid in the period. Further details of the total amounts of dividends paid in 2025 and

2024 (with 2023 comparatives) are given in note 22 in Part III - Item 18 Notes on the Accounts.

Dividends are declared and payable in sterling except for those shareholders on the branch register in South Africa, where dividends are payable in rand, in

line with the requirements of the JSE. The equivalent dividends receivable by holders of ADSs in US dollars are calculated based on the exchange rate on the

applicable payment date.

**Results for the Year Ended December 31, 2024 Compared to the Year Ended December 31, 2023**

The discussion of 2023 results that are not necessary to an understanding of the Group's financial condition, changes in financial condition and results of

operations is excluded from this Operating and Financial Review and Prospects in accordance with applicable U.S. securities laws. Discussion of such 2023

metrics is contained in the Group's Annual Report on Form 20-F 2024, which is available at bat.com/annualreport and has been filed with the SEC.

Information contained in pages 28 to 36, 42 to 59 and pages 395 to 410 of the Annual Report on Form 20-F 2024 are accordingly incorporated by reference

into this Form 20-F only to the extent such information pertains to the Group's financial condition and results of operations for the fiscal year ended 31

December 2023.

**Impact of Changes in Foreign Exchange Rates**

The principal currency exchange rates used to convert the results of the Group's foreign operations to sterling, for the purposes of inclusion and consolidation

within the Group's financial statements, are indicated in the table below.

Where the Group has provided results at constant rates of exchange, this refers to the translation of the results from the foreign operations at rates of exchange

prevailing in the prior period, thereby eliminating the potentially distorting impact of the movement in foreign exchange on the reported results.

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Foreign Exchange Rates**  |  |  |  |  |
|  | Average | Average | Closing | Closing |
|  | **2025** | 2024 | **2025** | 2024 |
| Australian dollar | **2.045** | 1.937 | **2.017** | 2.023 |
| Bangladeshi taka | **160.886** | 147.803 | **164.432** | 149.662 |
| Brazilian real | **7.363** | 6.893 | **7.371** | 7.737 |
| Canadian dollar | **1.842** | 1.751 | **1.844** | 1.801 |
| Chilean peso | **1253.837** | 1206.394 | **1212.663** | 1245.543 |
| Euro | **1.167** | 1.181 | **1.145** | 1.209 |
| Indian rupee | **114.989** | 106.952 | **120.892** | 107.223 |
| Japanese yen | **197.243** | 193.583 | **210.830** | 196.827 |
| Romanian leu | **5.885** | 5.877 | **5.834** | 6.018 |
| South African rand | **23.562** | 23.423 | **22.287** | 23.633 |
| Swiss franc | **1.094** | 1.125 | **1.066** | 1.135 |
| US dollar | **1.319** | 1.278 | **1.345** | 1.252 |

---

**Results on a Constant Translational Currency Basis**

Movements in foreign exchange rates have impacted the Group's financial results. The Group's Management Board reviews certain of its results, including

revenue, revenue growth from New Categories, adjusted profit from operations and adjusted diluted earnings per share, at constant rates of exchange. The

Group calculates these financial measures at constant rates of exchange based on a re-translation, at prior year exchange rates, of the current year's results of

the Group and, when applicable, its geographic segments. The Group does not adjust for the normal transactional gains and losses in profit from operations

that are generated by exchange movements. Although the Group does not believe that these measures are a substitute for IFRS measures, the Group's

Management Board does believe that such results excluding the impact of currency fluctuations provide additional useful information to users of the financial

statements and are used by the Group's Management Board as described above as they provide information regarding the Group's operating performance on

a local currency basis. Accordingly, the constant rates of exchange financial measures appearing in the discussion of the Group results of operations

(beginning on page [30](#i71dd3cfa32dd46f092cff6b4620b47a0_511672)) should be read in conjunction with the information provided in note 2 in Part III - Item 18 Notes on the Accounts.

In 2025 and 2024, results were affected by translational exchange rate movements.

In 2025, at the prevailing exchange rates, reported revenue declined by 1.0%, revenue from New Categories increased by 5.5% and adjusted profit from

operations decreased by 2.7% versus 2024. At constant rates of exchange, reported revenue would have increased by 2.1%, revenue from New Categories

would have increased by 7.0% and adjusted profit from operations would have increased by 0.4%. This lower performance at prevailing exchange rates reflects

the negative translational impact as a result of the relative strength of sterling.

In 2025 and 2024, adjusted diluted earnings per share was affected by translational exchange rate movements.

In 2025, the adjusted diluted earnings per share of 352.1p, a decrease of 2.9%, would, when translated at 2024 exchange rates, have been 365.0p, an increase

of 0.7%. This lower performance, in 2025, at prevailing exchange rates, reflects the negative translational impact as a result ofthe relative strength of sterling.

See also notes 2, 19 and 26 in Part III - Item 18 Notes on the Accounts.

**Non-GAAP Measures**

In the reporting of financial information, the Group uses certain measures that are not defined by IFRS, the Generally Accepted Accounting Principles (GAAP)

under which the Group reports. The Group believes that these additional measures, which are used internally, are useful to users of the financial information in

helping them understand the underlying business performance.

The principal non-GAAP measures which the Group uses are adjusted profit from operations, adjusted operating margin, adjusted net finance costs, adjusted

taxation, adjusted diluted earnings per share,which are before the impact of adjusting items and are reconciled from profit from operations, operating margin, net

finance costs, taxation, diluted earnings per share. The Group also uses adjusted share of post-tax results of associates and joint ventures, and underlying tax rate.

Adjusting items are significant items in profit from operations, net finance costs, taxation, the Group's share of the post-tax results of associates and joint ventures and

cash flow which individually or, if of a similar type, in aggregate, are relevant to an understanding of the Group's underlying financial performance. Adjusting items,

as identified in accordance with the Group's accounting policies, represent certain items of income and expense which the Group considers distinctive based on their

size, nature or incidence. In identifying and quantifying adjusting items, the Group applies a consistent policy that sets out the criteria an item must meet to be

classified as adjusting, as well at the types of items that are specifically excluded from being classified as adjusting.

The definition of adjusting items is explained in note 1 in Part III - Item 18 Notes on the Accounts.

The Group also supplements its presentation of revenue in accordance with IFRS by presenting the non-GAAP component breakdowns of revenues by product

category (including revenue generated from Vapour, Heated Products, Modern Oral, New Categories as a whole, Traditional Oral, Smokeless products as a whole

and combustibles), including by geographic segment (including revenue generated in the United States, Americas and Europe and Asia-Pacific, Middle East

and Africa).

**Revenue, at Constant Rates of Exchange** 

**Definition – Revenue before the impact of foreign exchange.**

To supplement BAT's revenue presented in accordance with IFRS, the Group's Management Board, as the chief operating decision-maker, reviews revenue

at constant rates of exchange to evaluate the underlying business performance of the Group and its geographic segments. The Group's Management Board

defines this measure as revenue retranslated at the prior periods' rate of exchange.

The Group's Management Board believes that revenue at constant rates of exchange provides information that enables users of the financial statements to

compare the Group's business performance across periods without the impacts of translational foreign exchange. This measure has limitations as an

analytical tool. The most directly comparable IFRS measure to revenue at constant rates of exchange is revenue. Revenue at constant rates of exchange is not

a presentation made in accordance with IFRS, and is not a measure of financial condition or liquidity and should not be considered as an alternative to

revenue as determined in accordance with IFRS. Revenue at constant rates of exchange is not necessarily comparable to similarly titled measures used by

other companies. As a result, you should not consider this performance measure in isolation from, or as a substitute analysis for, BAT's results as determined

in accordance with IFRS.

The table below reconciles revenue to revenue at constant rates based on a re-translation of revenue for each year, at the previous year's exchange rates.

British American Tobacco p.l.c. Form 20-F 2025<br>

Refer to note 2 in Part III - Item 18 Notes on the Accounts for further discussion of the segmental results and for the reconciliation of revenue at current and

constant rates of exchange, as applicable, to segmental revenue and to Group revenue for the years ended 31 December 2025, 2024 and 2023.

---

| | | |
|:---|:---|:---|
| For the year ended 31 December  | **2025** | 2024 |
|  | **£m** | £m |
| **Revenue** | **25610** | 25867 |
| Impact of translational foreign exchange | **804** |  |
| **2025 revenue re-translated at 2024 exchange rates** | **26414** | 25867 |
| **Change in revenue at prior year's exchange rates (constant rates)** | **2.1%** |  |

---

**Revenue by Product Category or Geographic Segment – Including Revenue from New Categories, at Constant Rates of Exchange**

**Definition – Revenue by product category, and at the prior year's prevailing exchange rate, derived from the principal product categories of** 

**Combustibles, New Categories (being comprised of revenue from Vapour, HP and Modern Oral), and Traditional Oral, including by the** 

**geographic segments of the United States, Americas and Europe, and Asia-Pacific, Middle East and Africa.**

To supplement BAT's revenue presented in accordance with IFRS, the Group's Management Board, as the chief operating decision-maker, reviews revenue

growth from the principal product categories of combustibles, New Categories and Traditional Oral, including from the geographic segments of the United

States, Americas and Europe, and Asia-Pacific, Middle East and Africa, to evaluate the underlying business performance of the Group reflecting the focus of

the Group's investment activity. The Group's Management Board assesses revenue by product category, including by geographic segment, at constant rates

of exchange, translated to the Group's reporting currency at the prior period's prevailing exchange rates, derived from the Group's combustibles portfolio

(including but not limited to Kent, Dunhill, Lucky Strike, Pall Mall, Rothmans, Camel (U.S.), Newport (U.S.) and Natural American Spirit (U.S.)), the

Group's New Category portfolio (being Vapour, HP and Modern Oral) and the Group's Traditional Oral portfolio and the Group's operations in the United

States, Americas and Europe, and Asia-Pacific, Middle East and Africa.

The Group's Management Board believes that the revenue performance by product category, including by geographic segment, provides information that enables

users of the financial statements to compare the Group's business performance across periods and by reference to the Group's investment activity. Revenue by

product category, including by geographic segment, has limitations as an analytical tool. The most directly comparable IFRS measure to revenue by product

category, including by geographic segment, is revenue. Revenue by product category, including by geographic segment, is not a presentation made in accordance

with IFRS, is not a measure of financial condition or liquidity and should not be considered as an alternative to revenue as determined in accordance with IFRS.

Revenue by product category, including by geographic segment, is not necessarily comparable to similarly titled measures used by other companies. As a result, you

should not consider this performance measure in isolation from, or as a substitute analysis for, BAT's results as determined in accordance with IFRS.

The table below reconciles revenue by product category to revenue by product category at constant rates based on a re-translation of revenue by product

category for each year, at the previous year's exchange rates.

**Reconciliation of revenue by product category to revenue by product category at constant rates of exchange (2025 - 2024)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| For the year ended 31 December  | **2025** | **2025** | **2025** | **2025** | **2025** | **2024** |
| **Group** | **Reported** <br>**£m**<br>| **vs 2024%**<br>| **Impact of** <br>**exchange** <br>**£m**<br>| **Reported at cc**<br>**£m**<br>| **Reported at cc** <br>**vs 2024%**<br>| **Reported** <br>**£m**<br>|
| New Categories: |  |  |  |  |  |  |
| Vapour | **1542** | **-10.4%** | **31** | **1573** | **-8.6%** | 1721 |
| HP | **914** | **-0.7%** | **16** | **930** | **+1.0%** | 921 |
| Modern Oral | **1165** | **+47.4%** | **5** | **1170** | **+48.0%** | 790 |
| Total New Categories | **3621** | **+5.5%** | **52** | **3673** | **+7.0%** | 3432 |
| Traditional Oral | **1043** | **-4.5%** | **30** | **1073** | **-1.7%** | 1092 |
| Combustibles | **20201** | **-2.3%** | **686** | **20887** | **+1.0%** | 20685 |
| Other | **745** | **+13.2%** | **36** | **781** | **+18.7%** | 658 |
| Revenue | **25610** | **-1.0%** | **804** | **26414** | **+2.1%** | 25867 |

---

**Reconciliation of revenue by product category to revenue by product category at constant rates of exchange**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **For the year ended 31 December**  | **2025** | **2025** | **2025** | **2025** | **2025** | 2024 |
| **U.S.** | **Reported**<br>**£m**<br>| **vs 2024%**<br>| **Impact of** <br>**exchange** <br>**£m**<br>| **Reported at cc**<br>**£m**<br>| **Reported at cc** <br>**vs 2024%**<br>| Reported <br>£m<br>|
| New Categories: |  |  |  |  |  |  |
| Vapour | **934** | **-6.4%** | **29** | **963** | **-3.4%** | 998 |
| HP | **—** | **—** | **—** | **—** | **—** |  |
| Modern Oral | **317** | **+297%** | **10** | **327** | **+310%** | 80 |
| Total New Categories | **1251** | **+16.1%** | **39** | **1290** | **+19.8%** | 1078 |
| Traditional Oral | **1006** | **-5.0%** | **31** | **1037** | **-2.0%** | 1058 |
| Combustibles | **9218** | **+1.4%** | **295** | **9513** | **+4.6%** | 9094 |
| Other | **59** | **+23.2%** | **4** | **63** | **+27.5%** | 48 |
| Revenue | **11534** | **+2.3%** | **369** | **11903** | **+5.5%** | 11278 |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **For the year ended 31 December**  | **2025** | **2025** | **2025** | **2025** | **2025** | 2024 |
| **AME** | **Reported** <br>**£m**<br>| **vs 2024%**<br>| **Impact of** <br>**exchange** <br>**£m**<br>| **Reported at cc**<br>**£m**<br>| **Reported at cc** <br>**vs 2024%**<br>| Reported <br>£m<br>|
| New Categories: |  |  |  |  |  |  |
| Vapour | **543** | **-11.2%** | **(1)** | **542** | **-11.4%** | 611 |
| HP | **470** | **+6.2%** | **1** | **471** | **+6.2%** | 443 |
| Modern Oral | **800** | **+18.3%** | **(6)** | **794** | **+17.3%** | 676 |
| Total New Categories | **1813** | **+4.8%** | **(6)** | **1807** | **+4.3%** | 1730 |
| Traditional Oral | **37** | **+9.9%** | **(1)** | **36** | **+5.1%** | 34 |
| Combustibles | **6974** | **-0.9%** | **226** | **7200** | **+2.3%** | 7039 |
| Other | **485** | **+10.8%** | **20** | **505** | **+15.7%** | 438 |
| Revenue | **9309** | **+0.7%** | **239** | **9548** | **+3.3%** | 9241 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **For the year ended 31 December**  | **2025** | **2025** | **2025** | **2025** | **2025** | 2024 |
| **APMEA** | **Reported** <br>**£m**<br>| **vs 2024%**<br>| **Impact of** <br>**exchange** <br>**£m**<br>| **Reported at cc**<br>**£m**<br>| **Reported at cc** <br>**vs 2024%**<br>| Reported <br>£m<br>|
| New Categories: |  |  |  |  |  |  |
| Vapour | **65** | **-41.2%** | **3** | **68** | **-39.4%** | 112 |
| HP | **444** | **-7.0%** | **15** | **459** | **-3.8%** | 478 |
| Modern Oral | **48** | **+39.8%** | **1** | **49** | **+44.2%** | 34 |
| Total New Categories | **557** | **-10.6%** | **19** | **576** | **-7.6%** | 624 |
| Traditional Oral | **—** | **—** | **—** | **—** | **—** |  |
| Combustibles | **4009** | **-11.9%** | **165** | **4174** | **-8.3%** | 4552 |
| Other | **201** | **+16.3%** | **12** | **213** | **+23.7%** | 172 |
| Revenue | **4767** | **-10.9%** | **196** | **4963** | **-7.2%** | 5348 |

---

**Note:**

cc: constant currency – measures are calculated based on a re-translation of the current year's results of the Group at the prior year's exchange rates and, where applicable, its geographical segments or product

categories.

**Adjusted Profit From Operations (APFO) and Adjusted Operating Margin**

**Definition – Profit from operations before the impact of adjusting items and translational foreign exchange; and adjusted profit from operations as a** 

**percentage of revenue.**

To supplement BAT's results from operations presented in accordance with IFRS, the Group's Management Board, as the chief operating decision-maker, reviews

adjusted profit from operations and adjusted operating margin, which is defined as APFO as a percentage of revenue, to evaluate the underlying business performance of

the Group and its geographic segments, to allocate resources to the overall business and to communicate financial performance to users of the financial statements.

APFO and adjusted operating margin are not measures defined by IFRS. The most directly comparable IFRS measure to APFO is profit from operations. The most

directly comparable IFRS measure to adjusted operating margin is operating margin which is profit from operations as a proportion of revenue. The definition of

adjusting items is explained in note 1 in Part III - Item 18 Notes on the Accounts.

The Group's Management Board believes that these additional measures are useful to the users of the financial statements and are used by the Group's Management

Board as described above, because they exclude the impact of adjusting items which have less bearing on the routine ongoing operating activities of the Group, thereby

enhancing users' understanding of underlying business performance and enabling users of the financial statements to compare the Group's business performance across

periods. Additionally, the Group's Management Board believes that similar measures are frequently used by securities analysts, investors and other interested parties in

their evaluation of companies comparable to the Group, many of which present an adjusted operating profit-related performance measure when reporting their results.

APFO and adjusted operating margin have limitations as analytical tools. They are not presentations made in accordance with IFRS, are not measures of financial

condition or liquidity and should not be considered as alternatives to profit for the year, profit from operations or operating margin as determined in accordance

with IFRS. These measures are not necessarily comparable to similarly titled measures used by other companies. As a result, you should not consider these

performance measures in isolation from, or as a substitute analysis for, BAT's results of operations as determined in accordance with IFRS.

The table below reconciles the Group's profit from operations to APFO and to APFO at constant rates based on a re-translation of APFO for each year, at the previous

year's exchange rates, and provides adjusted operating margin for the periods presented.

Refer to note 2in Part III - Item 18 Notes on the Accounts for further discussion of the segmental results and for the reconciliation of adjusted profit from

operations at current and constant rates of exchange to segmental profit from operations and to Group profit for the years ended 31 December 2025, 2024 and

2023. 44

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | |
|:---|:---|:---|
| For the year ended 31 December  | **2025** | 2024 |
|  | **£m** | £m |
| **Profit from operations** | **9997** | 2736 |
| Add: |  |  |
| Restructuring | **66** |  |
| Amortisation and impairment of trademarks and similar intangibles | **1584** | 2279 |
| (Credit)/charges in respect of Romania's other taxes  | **(15)** | 449 |
| (Credit)/charges in respect of the Canada Approved Plans | **(708)** | 6203 |
| Impairment charges in respect of Cuba's fixed assets | **—** | 74 |
| Impairment charges relating to the Group's head office in London | **—** | 75 |
| Impairment of goodwill | **277** | 39 |
| Charges in connection with disposal of associate | **3** | 6 |
| Pension liability management (buy-out) | **28** |  |
| Impairment on held-for-sale assets and associated costs | **235** |  |
| Charges in respect of DOJ investigation and OFAC investigation | **—** | 4 |
| Credit in respect of settlement of historical litigation in relation to the Fox River | **—** | (132) |
| Loss of a distribution facility in Ukraine | **39** |  |
| Other adjusting items (including Engle) | **66** | 157 |
| **Adjusted profit from operations** | **11572** | 11890 |
| Impact of translational foreign exchange | **364** |  |
| **Adjusted profit from operations, translated at 2024 exchange rates** | **11936** | 11890 |
| **Change in adjusted profit from operations, translated at 2024 exchange rates** | **+0.4%** |  |
| **Operating Margin (Profit from operations as a % of revenue)** | **39.0%** | 10.6% |
| **Adjusted Operating Margin (Adjusted profit from operations as a % of revenue)** | **45.2%** | 46.0% |

---

**Adjusted Net Finance Costs at Constant Rates of Exchange**

**Definition – Net finance costs before the impact of adjusting items, and translational foreign exchange.**

To supplement BAT's performance presented in accordance with IFRS, the Group's net finance costs are also presented before adjusting items (as defined in

note 1 and described in note 8(b) in Part III - Item 18 Notes on the Accounts) and before the impact of translational foreign exchange. The Group's

Management Board believes that adjusted net finance costs provides information that enables users of the financial statements to compare the Group's business

performance across periods. The Group's Management Board uses adjusted net finance costs as part of the total assessment of the underlying performance of

all the Group's business interests. Adjusted net finance costs has limitations as an analytical tool. It is not a presentation made in accordance with IFRS, is not

a measure of financial condition or liquidity and should not be considered as an alternativeto the Group's net finance costs as determined in accordance with

IFRS. The most directly comparable IFRS measure to adjusted net finance costs is net finance costs. Adjusted net finance costs is not necessarily comparable

to similarly titled measures used by other companies. As a result, you should not consider this performance measureinisolation from, or as a substitute

analysis for, BAT's results of operations as determined in accordance with IFRS.

Adjusted net finance costs is also included in the calculation of Group's presentation of adjusted diluted earnings per share, which is used within the Group's

incentive schemes, asreportedunder Item 6.B - Compensation.

The table below reconciles the Group's net finance costs to adjusted net finance costs, and to adjusted net finance costs at constant rates based, on a re-

translation of adjusted net finance costs for each year, at the previous year's exchange rates.

---

| | | |
|:---|:---|:---|
| **For the year ended 31 December** | **2025** | 2024 |
|  | **£m** | £m |
| Finance costs | **(2033)** | (1349) |
| Finance income | **214** | 251 |
| **Net finance costs** | **(1819)** | (1098) |
| Less: Adjusting items in net finance costs | **170** | (491) |
| **Adjusted net finance costs** | **(1649)** | (1589) |
| Comprising: |  |  |
| Interest payable | **(1715)** | (1759) |
| Interest and dividend income | **214** | 251 |
| Fair value changes – derivatives | **(521)** | (90) |
| Exchange differences | **373** | 9 |
| **Adjusted net finance costs** | **(1649)** | (1589) |
| Impact of translational foreign exchange | **(27)** |  |
| **Adjusted net finance costs, translated at 2024 exchange rates** | **(1676)** | (1589) |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

**Adjusted Share of Post-Tax Results of Associates and Joint Ventures, at Constant Rates of Exchange**

**Definition – Share of post-tax results of associates and joint ventures before the impact of adjusting items and translational foreign exchange.**

To supplement BAT's performance presented in accordance with IFRS, the Group's share of post-tax results of associates and joint ventures is also presented

before adjusting items (as defined in note 1in Part III - Item 18 Notes on the Accounts). The Group's Management Board believes that adjusted share of

post-tax results of associates and joint ventures provides information that enables users of the financial statements to compare the Group's business

performance across periods. The Group's Management Board uses adjusted share of post-tax results from associates and joint ventures as part of the total

assessment of the underlying performance of all the Group's business interests. Adjusted share of post-tax results of associates and joint ventures has

limitations as an analytical tool. It is not a presentation made in accordance with IFRS, is not a measure of financial condition or liquidity, and should not be

considered as an alternative to the Group's share of post-tax results of associates and joint ventures as determined in accordance with IFRS. The most directly

comparable IFRS measure to adjusted share of post-tax results of associates and joint ventures is share of post-tax results of associates and joint ventures.

Adjusted share of post-tax results of associates and joint ventures is not necessarily comparable to similarly titled measures used by other companies. As a

result, you should not consider this performance measure in isolation from, or as a substitute analysis for, BAT's results of operations as determined in

accordance with IFRS.

The definition of adjusting items is explained in note 1 in Part III - Item 18 Notes on the Accounts.

The table below reconciles the Group's share of post-tax results of associates and joint ventures to adjusted Group's share of post-tax results of associates and

joint ventures, and to adjusted Group's share of post-tax results of associates and joint ventures at constant rates based on a re-translation of adjusted Group's

share of post-tax results of associates and joint ventures for each year, at the previous year's exchange rates.

---

| | | |
|:---|:---|:---|
| **For the year ended 31 December** | 2025 | 2024 |
|  | **£m** | £m |
| **Group's share of post-tax results of associates and joint ventures** | **1681** | 1900 |
| Issue of shares and changes in shareholding | **(5)** | (18) |
| Other exceptional items in ITC | **(333)** |  |
| Gain on partial divestment of shares held in ITC | **(898)** | (1361) |
| Gain on sale of land and property by VST industries Limited | **(3)** |  |
| **Adjusted Group's share of post-tax results of associates and joint ventures** | **442** | 521 |
| Impact of translational foreign exchange | **33** |  |
| **Adjusted Group's share of post-tax results of associates and joint ventures, translated at 2024 exchange rates** | **475** | 521 |

---

**Adjusted Taxation at Constant Rates of Exchange**

**Definition – Taxation before the impact of adjusting items and translational foreign exchange.**

BAT management monitors the Group's adjusted taxation to assess BAT's underlying tax. The definition of adjusting items is explained in note1 in Part III -

Item 18 Notes on the Accounts. Adjusted taxation is not a measure defined by IFRS. The Group's Management Board believes that this additional measure is

useful to the users of the financial statements, and is used by BAT management, because it excludes the tax on adjusting items and adjusting tax (as described

in notes 10(d) and 10(e), respectively, in Part III - Item 18 Notes on the Accounts), thereby enhancing users' understanding of underlying business

performance.

Adjusted taxation has limitations as an analytical tool. It is not a presentation made in accordance with IFRS and should not be considered as an alternative to

taxation as determined in accordance with IFRS. The most directly comparable IFRS measure to adjusted taxation is taxation. Adjusted taxation is not

necessarily comparable to similarly titled measures used by other companies. As a result, you should not considerthis measurein isolation from, or as a

substitute analysis for, the Group's taxation as determined in accordance with IFRS.

The table below reconciles taxation to adjusted taxation and adjusted taxation at constant rates, based on a re-translation of adjusted taxation for each year, at

the previous year's exchange rates.

---

| | | |
|:---|:---|:---|
| For the year ended 31 December | 2025 | 2024 |
|  | **£m** | £m |
| UK corporation tax |  |  |
| – current year tax expense | **15** | 15 |
| – adjustments in respect of prior periods | **2** | 9 |
| Overseas tax |  |  |
| – current year tax expense | **2355** | 2571 |
| – adjustments in respect of prior periods | **(296)** | 108 |
| **Current tax** | **2076** | 2703 |
| Pillar Two income tax | **82** | 79 |
| **Total current tax** | **2158** | 2782 |
| Deferred tax | **(64)** | (2425) |
| **Taxation on ordinary activities** | **2094** | 357 |
| Adjusting items in taxation | **104** | 157 |
| Taxation on adjusting items | **240** | 2049 |
| **Adjusted taxation** | **(2438)** | (2563) |
| Impact of translational foreign exchange | **(84)** |  |
| **Adjusted taxation, translated at 2024 exchange rates** | **(2522)** | (2563) |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

**Underlying Tax Rate and Underlying Tax Rate at Constant Rates of Exchange**

**Definition – Tax rate incurred before the impact of adjusting items and translational foreign exchange and to adjust for the inclusion of the** 

**Group's share of post-tax results of associates and joint ventures within the Group's pre-tax results.**

BAT management monitors the Group's underlying tax rate to assess the tax rate applicable to the Group's underlying operations, excluding the Group's

share of post-tax results of associates and joint ventures in BAT's pre-tax results and adjusting items (as defined innote 1 in Part III - Item 18 Notes on the

Accounts). Underlying tax rate is not a measure defined by IFRS. The Group's Management Board believes that this additional measure is useful to the users

of the financial statements, and is used by BAT management, because it excludes the contribution from the Group's associates, recognised after tax but

within the Group's pre-tax profits, and adjusting items, thereby enhancing users' understanding of underlying business performance.

Underlying tax rate has limitations as an analytical tool. It is not a presentation made in accordance with IFRS and should not be considered as an alternative

to the effective tax rate as determined in accordance with IFRS. The most directly comparable IFRS measure to underlying tax rate is the effective tax rate,

calculated as taxation as a proportion of profit before taxation. Underlying tax rate is not necessarily comparable to similarly titled measures used by other

companies. As a result, you should not consider this measure in isolation from, oras a substitute analysis for, the Group's effective tax rate as determined in

accordance with IFRS.

The table below shows the computation of the Group's underlying tax rate for the periods presented and underlying tax rate at constant rates based on a re-

translation of underlying tax rate for each year, at the previous year's exchange rates and the related reconciliation of profit before taxation to adjusted profit

before taxation, excluding associates and joint ventures, and taxation on ordinary activities to adjusted taxationandadjusted taxation at constant rates of

exchange.

---

| | | |
|:---|:---|:---|
| For the year ended 31 December | 2025 | 2024 |
|  | **£m** | £m |
| **Profit before taxation (PBT)** | **9859** | 3538 |
| Less: |  |  |
| Share of post-tax results of associates and joint ventures | **(1681)** | (1900) |
| Adjusting items within profit from operations | **1575** | 9154 |
| Adjusting items within finance costs | **170** | (491) |
| **Adjusted profit before taxation, excluding associates and joint ventures** | **9923** | 10301 |
| Impact of translational foreign exchange | **337** |  |
| **Adjusted PBT, excluding associates and joint ventures, translated at 2024 exchange rates**  | **10260** | 10301 |
| **Taxation on ordinary activities** | **(2094)** | (357) |
| Adjusting items within taxation and taxation on adjusting items | **(344)** | (2206) |
| **Adjusted taxation** | **(2438)** | (2563) |
| Impact of translational foreign exchange on adjusted taxation | **(84)** |  |
| **Adjusted taxation, translated at 2024 exchange rates** | **(2522)** | (2563) |
| **Effective tax rate** | **21.2%** | 10.1% |
| **Underlying tax rate** | **24.6%** | 24.9% |
| **Underlying tax rate (at 2024 exchange rates)** | **24.6%** | 24.7% |

---

**Adjusted Diluted Earnings Per Share (EPS), presented at both current and constant rates of exchange**

**Definition – Diluted earnings per share before the impact of adjusting items and after adjustments to the number of shares outstanding for the** 

**impact of share option schemes whether they would be dilutive or not under statutory measures, presented at the current and the prior years'** 

**rates of exchange.**

BAT management monitors adjusted diluted EPS, a measure which removes the impact of adjusting items (as defined in note 1 in Part III - Item 18 Notes on

the Accounts) from diluted earnings per share. Adjusted diluted EPS is considered by the Group's Management Board to be useful to the users of the financial

statements and is used by the Group's Management Board, because it excludes the impact of adjusting items which have less bearing on the routine ongoing

operating activities of the Group, thereby enhancing users' understanding of underlying business performance. The Group's Management Board also believes that

adjusted diluted EPS provides information that enables users of the financial statements to compare the Group's business performance across periods. Additionally,

the Group's Management Board believes that similar measures are frequently used by securities analysts, investors and other interested parties in their evaluation of

companies comparable to the Group, many of which present an adjusted diluted EPS-related performance measure when reporting their result. Adjusted diluted

EPS is used by management as reported in note 11 in Part III - Item 18 Notes on the Accounts, as an indicator of diluted EPS before adjusting items.

Adjusted diluted EPS is not necessarily comparable to similarly titled measures used by other companies. Adjusted diluted EPS has limitations as an

analytical tool. It is not a presentation made in accordance with IFRS and should not be considered as an alternative to diluted EPS as determined in

accordance with IFRS. The most directly comparable IFRS measure to adjusted diluted EPS is diluted EPS.

The management also assesses adjusted diluted earnings per share (at current and constant rates) within the Group's incentive schemes, as reported under

Item 6. B - Compensation.

The table below reconciles diluted EPS to adjusted diluted EPS and adjusted diluted EPS, at constant exchange rates based upon a re-translation of adjusted

diluted EPS for each year, at the previous year's exchange rate.

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | |
|:---|:---|:---|
| For the year ended 31 December | 2025 | 2024 |
|  | **pence** | pence |
| **Diluted earnings per share** | **349.1** | 136.0 |
| Effect of amortisation and impairment of goodwill, trademarks and similar intangibles | **68.2** | 80.7 |
| Effect of impairment charges in respect of the Group's head office | **—** | 2.9 |
| Effect of impairment charges in respect of the Group's operations in Cuba | **—** | 1.6 |
| Effect of settlement of historical litigation in relation to the Fox River | **—** | (4.9) |
| Effect of the changes in provision in relation to the Approved Plans in Canada and associated costs | **(23.7)** | 205.0 |
| Effect of charges in respect of DOJ and OFAC investigations | **—** | 0.2 |
| Effect of impairment of held-for-sale assets and associated costs | **5.5** |  |
| Effect of Romania other taxes | **(0.7)** | 20.1 |
| Effect of restructuring costs | **1.8** |  |
| Effect of other adjusting items in operating profit | **5.1** | 5.3 |
| Effect of adjusting items in net finance costs | **4.9** | (17.0) |
| Effect of gains related to the partial divestment of shares held in ITC | **(40.8)** | (61.1) |
| Tax associated with the partial divestment of shares held in ITC and hotels business demerger | **1.6** | 1.6 |
| Effect of associates' adjusting items | **(15.5)** | (0.8) |
| Effect of adjusting items in respect of deferred taxation | **(9.2)** | (12.0) |
| Adjusting items in tax | **4.5** | 4.9 |
| Redemption of perpetual hybrid bond - difference in spot rates | **1.3** |  |
| **Adjusted diluted earnings per share** | **352.1** | 362.5 |
| Impact of translational foreign exchange | **12.9** |  |
| **Adjusted diluted earnings per share, translated at 2024 exchange rates** | **365.0** | 362.5 |

---

**Net Debt**

**Definition – Total borrowings, including related derivatives, less cash and cash equivalents and current investments held at fair value.**

Management uses net debt to assess its financial capacity. Net debt is not a measure defined by IFRS. The most directly comparable IFRS measure to net

debt is total borrowings. The Group's Management Board believes that this additional measure, which is used internally to assess the Group's financial

capacity, is useful to the users of the financial statements in helping them to see how business financing has changed over the year. Net debt has limitations as

an analytical tool. It is not a presentation made in accordance with IFRS and should not be considered as an alternative to total borrowings or total liabilities

determined in accordance with IFRS. Net debt is not necessarily comparable to similarly titled measures used by other companies. In addition, it does not

exclude restricted cash (as set out in note 21 in Part III - Item 18 Notes on the Accounts) in the calculation. As a result, you should not consider this measure in

isolation from, or as asubstitute analysis for, the Group's measures of financial position or liquidity as determined in accordance with IFRS. A reconciliation ofborrowings to

net debt is provided in note 23 in Part III - Item 18 Notes on the Accounts.

**Item 5. B - Liquidity and capital resources**

The Group's cash inflows derive principally from its operating activities. They are supplemented when required by cash flows from financing activities,

typically to support general corporate requirements but also, from time to time, to support acquisitions. The principal sources of liquidity for the Group are

cash flows generated from the operating business and proceeds from issuances of debt securities described below under 'Capital Resources – Borrowings and

Net Debt'.

**Treasury, Liquidity and Capital Structure**

The Board reviews and agrees the overall treasury policies and procedures, delegating appropriate oversight to the Chief Financial Officer and the Treasury

function. The Treasury function is responsible for raising finance for the Group and managing the Group's cash resources and the financial risks arising from

underlying operations. Clear parameters have been established, including levels of authority, on the type and use of financial instruments to manage the financial

risks facing the Group. Such instruments are only used if they relate to an underlying exposure; speculative transactions are expressly forbidden under the Group's

treasury policy. All these activities are carried out under defined policies, procedures and limits, reviewed and approved by the Board, delegating oversight to the

Chief Financial Officer and Treasury Function. The treasury policies include a set of financing principles and key performance indicators. The Group's treasury

position is monitored by a Corporate Finance Committee chaired by the Chief Financial Officer. Treasury operations are subject to periodic independent reviews

and audits, both internal and external. See note 26in Part III - Item 18 Notes on the Accounts for further detail.

It is the policy of the Group to maximise financial flexibility and minimise refinancing risk by issuing debt with a range of maturities, generally matching the

projected cash flows of the Group and obtaining this financing from a wide range of sources. The Group targets an average centrally managed debt maturity

of at least five years of which no more than 20% matures in a single rolling year. As at 31 December 2025, the average centrally managed debt maturity was

9.5 years (2024: 9.5 years) with the highest proportion maturing in a single rolling 12-month period being 15.1% (2024: 14.8%).

In order to manage its interest rate risk, the Group maintains both floating rate and fixed rate debt. The Group sets targets (within overall guidelines) for the

desired ratio of floating to fixed rate debt on a net basis (at least 50% fixed on a net basis in the short- to medium-term). The interest rate profile of liquid

assets included in net debt are considered to offset floating rate debt and are taken into account in determining the net interest rate exposure. At 31 December

2025, the relevant ratios of floating to fixed rate borrowings after the impact of derivatives were 24:76 (2024: 22:78). On a net basis, after offsetting liquid

assets and excluding cash and other liquid assets (including investments held at fair value) in Canada which were subject to certain restrictions under

Companies' Creditors Arrangement Act (CCAA) protection in 2024 (and were paid in the second half of 2025), the relevant ratio of floating to fixed rate

borrowings was 14:86 (2024: 13:87).

As part of the management of liquidity, funding and interest rate risk, the Group regularly evaluates market conditions and may enter into transactions, from

time to time, to repurchase outstanding debt, pursuant to open market purchases, tender offers or other means.

The Group continues to maintain investment-grade credit ratings<sup>\*</sup>, with ratings from Moody's, S&P and Fitch of Baa1 (stable outlook), BBB+ (stable

outlook), BBB+ (stable outlook), respectively.

British American Tobacco p.l.c. Form 20-F 2025<br>

The strength of the ratings has underpinned debt issuance and the Group is confident of its ability to successfully access the debt capital markets.

For more info on liquidity and capital resources, please refer to notes 23 and 26 in Part III - Item 18 Notes on the Accounts.

\*A credit rating is not a recommendation to buy, sell or hold securities. A credit rating may be subject to withdrawal or revision at any time. Each rating should be evaluated separately of any other rating.

**Available facilities**

It is Group policy that short-term sources of funds (including drawings under both the Group US$4 billion U.S. commercial paper (U.S. CP) programme

and the Group £3 billion euro commercial paper (ECP) programme) are backed by undrawn committed lines of credit and cash. Commercial paper is

issued by B.A.T. International Finance p.l.c., B.A.T. Netherlands Finance B.V. and B.A.T Capital Corporation and guaranteed by British American

Tobacco p.l.c. At 31 December 2025, commercial paper of nil was outstanding (2024: nil). Cash flows relating to commercial paper that have maturity

periods of three months or less are presented on a net basis in the Group's cash flow statement.

At 31 December 2025, the Group had access to a £5.0 billion revolving credit facility. This facility was undrawn at 31 December 2025. In November 2025, the

Group refinanced its existing £5.2 billion facility at the reduced amount of £5.0 billion comprising (i) a£2.5 billion364-day tranche with twoone-year

extension options and a one-year term out option and (ii) a £2.5 billionfive-year tranche with twoone-year extension options.

During 2025, the Group refinanced or extended short-term bilateral facilities totalling £2.7 billion. As at 31 December 2025, nil was drawn on a short-term

basis with £2.7 billion undrawn and still available under such bilateral facilities. Cash flows relating to bilateral facilities that have maturity periods of three

months or less are presented on a net basis in the Group's cash flow statement.

In January 2025, the Group entered into a medium-term facility of £468 million (equivalent), which was fully drawn as at 31 December 2025.

Following the initial filing in 2019, the Group's shelf registration statement on Form F-3 was renewed with the SEC in 2022 and again in 2025, pursuant to

which B.A.T Capital Corporation, BAT p.l.c. and B.A.T. International Finance p.l.c. may issue debt securities guaranteed by certain members of the Group

from time to time. This forms part of the Group's strategy to ensure flexible and agile access to capital markets and the registration statement is initially valid

for three years.

See also note 26 in Part III - Item 18 Notes on the Accounts.

**Use of facilities**

These facilities ensure that the Group has access to funding to supplement the cash available or generated by the business in the period to meet the

operational (including working capital) and general corporate requirements including, but not limited to, the timing of payments in relation to:

–dividends (2025: £5.2 billion; 2024: £5.2 billion);

–net capital expenditure (2025: £0.6 billion; 2024: £0.4 billion);

–Franked Investment Income Group Litigation Order (FII GLO) as described on note 10(b) in Part III - Item 18 Notes on the Accounts;

–Master Settlement Agreement and State Settlement Agreements in the U.S. (2025: £1.6 billion; 2024: £2.0 billion);

–refinancing obligations;

–share repurchase programme; and

–other corporate activity, litigation or acquisitions, as relevant.

Management believes that the Group has sufficient working capital for present requirements, taking into account the amounts of undrawn borrowing facilities

and levels of cash and cash equivalents, and the ongoing ability to generate cash.

**Issuance, drawdowns and repayment in the period**

–In March 2025, the Group repaid a €650 million bond at maturity and accessed the US dollar market under the SEC Shelf Programme, raising a total of

US$2.5 billion across three tranches;

–In June 2025, the Group repaid two bonds totalling an aggregate amount of US$3.0 billion at maturity;

–In August 2025, the Group repaid a £300 million bond at maturity;

–In September 2025, the Group accessed the US dollar market under the SEC Shelf Programme, raising US$750 million; and

–In October 2025, the Group issued two series of perpetual hybrid bonds, each in an aggregate principal amount of €600 million and concurrently launched

a tender offer for its outstanding €1.0 billion3%perpetual hybrid bond (first callable in 2026). As a result, approximately 80.7% of the existing 3%

perpetual hybrid notes were repurchased at a slight premium, with the remaining 19.3% redeemed at their principal value in November 2025. Refer to note

22(d) in Part III - Item 18 Notes on the Accounts for further details.

**Cash Flow**

Please refer to note 21 in Part III - Item 18 Notes on the Accounts for further details.

**Net cash generated from operating activities** 

Net cash generated from operating activities decreased by £3,783 million to £6,342 million in 2025 (from £10,125 million in 2024), largely due to the

payment of £2,560 million in the second half of 2025 in Canada as part of the Approved Plans.

2025was also negatively impacted by translational foreign exchange due to the relative movements of sterling against the Group reporting currencies,

notably the US dollar.

In 2025, the decrease was also driven by:

–Lower dividends received from the Group's associates of £369 million (2024: £406 million), mainly related to ITC, largely reflecting the reduced

shareholding;

–An increase in tax paid of £2,926 million, compared to £1,854 million in 2024 as £678 million that was deferred in the U.S. from 2024 was paid in the first

half of 2025; and

–A payment related to the FII GLO of £479 million. The Group will make further payments of £222 million in 2026 and £41 million in 2027. Please see

note 10(b) in Part III - Item 18 Notes on the Accounts.

These were partly offset by the net impact of payments in 2024 of the following items that did not repeat:

–The final payment in respect of the settlement agreements with the DOJ and OFAC in the amount of £267 million;

–A payment of £390 million following an excise assessment in Romania; and

–The receipt of £132 million following the successful conclusion of litigation concerning the Fox River.

In 2025, other litigation payments (mainly related to *Engle* and other health-related claims in the U.S. and in respect of Canada) were lower at £101 million

(2024: £147 million).

**Net cash from investing activities**

In 2025, net cash from investing activities was marginally higher, up to £1,387 million inflow (2024: £1,375 million inflow).

British American Tobacco p.l.c. Form 20-F 2025<br>

This was driven by the net movement from short-term investment products, including treasury bills, which were an inflow of £794 millionin 2025, compared

to an inflow of £83 million in 2024 due to:

–the net proceeds of £318 million from the sale, in December 2025, of around 59% of the Group's investment in ITC Hotels;and

–the liquidation of investments (£437 million) that were then included in the upfront payment in respect of Canada as part of the Approved Plans.

However, this was largely offset by lower net proceeds from the partial monetisation of our investment in ITC of £1,052 million compared to £1,577 million

in 2024.

Purchases of property, plant and equipment were higher than 2024, at £551 million (2024: £486 million).

In 2025, the Group invested £648 million in gross capital expenditure, an increase of 11.7% on the prior year (2024: £581 million). This included purchases

of property, plant and equipment related to the ongoing investment in the Group's operational infrastructure, including the expansion of our New Categories

portfolio and enhancements to our Modern Oral capacity.

The Group expects its gross capital expenditure in 2026 to be approximately £750 million.

**Net cash used in financing activities**

Net cash used in financing activities was an outflow of £8,762 million in 2025 (2024: £10,632 million outflow), with the outflow in each year largely driven

by:

–Dividend payments (2025: £5,238 million, up 0.5%; 2024: £5,213 million). The movement was driven by the higher dividend per share. However, the

increase was partially offset by the reduction in the number of shares due to the share buy-back programme undertaken in 2025 and 2024;

–The net repayment of borrowings (2025: £118 million; 2024: £2,422 million) as described on page [48](#if480002097db40398fdb9f41dec2daee_106452);

–An outflow of £380 million (2024: £128 million) related to derivatives;

–A net inflow from the redemption and subsequent issuance of perpetual hybrid bonds of £167 million; and

–The purchases of shares under the 2025 share buy-back programme of £1,112 millioncompared to£698 million in 2024.

In 2025, interest paid decreased by 4.2% to £1,631 million (2024: £1,703 million).

Please refer to note 26in Part III - Item 18 Notes on the Accounts for further details.

**Cash flow conversion**

The conversion of profit from operations to net cash generated from operating activities may indicate the Group's ability to generate cash from the profits

earned.

Based upon net cash generated from operating activities, the Group's conversion rate was 63% compared to 370% in 2024, impacted, in both years, by the

provision recognised in respect of the Canadian settlement in 2024 and subsequent payment of cash and cash equivalents held in ITCAN during 2025.

---

| | | |
|:---|:---|:---|
| **Summary Cash Flow**  | **Summary Cash Flow**  | **Summary Cash Flow**  |
|  | **2025**<br>**£m**<br>| 2024<br>£m<br>|
| **Cash generated from operating activities** | **8899** | 11573 |
| Dividends received from associates | **369** | 406 |
| Tax paid | **(2926)** | (1854) |
| **Net cash generated from operating activities** | **6342** | 10125 |
| **Net cash from investing activities** | **1387** | 1375 |
| **Net cash used in financing activities** | **(8762)** | (10632) |
| Transferred to held-for-sale | **(208)** |  |
| Differences on exchange | **(76)** | (281) |
| **(Decrease)/increase in net cash and cash equivalents in the year** | **(1317)** | 587 |

---

**Restricted cash**

Cash and cash equivalents include restricted amounts of £268 million (2024:£2,072 million) in respect of ITCAN which was previously in CCAA protection

(note 32 and note 24 in Part III - Item 18 Notes on the Accounts). Accumulated cash and cash equivalents were paid into the Global Settlement Trust

Account as part of the Upfront Cash Contribution (each as defined in the Approved Plans, see note 24 in Part III - Item 18 Notes on the Accounts) in the

second half of 2025. Due to ongoing restrictions associated with the Approved Plans in Canada, cash and cash equivalents held by ITCAN continue to be

considered restricted. As at 31 December 2025, further restricted cash and cash equivalents of £67 million (2024: £339 million) were principally due to

exchange control restrictions.

Investments held at fair value through profit and loss included restricted amounts, at 31 December 2024 of£437 million due to investments held by

subsidiaries in CCAA protection which were subsequently included in the settlement payments made in 2025 in respect of the Approved Plans in the

Canadian litigation.

At 31 December 2025, further restricted amounts of nil (31 December 2024: £60 million) were subject to potential exchange control restrictions (see note 18

in Part III - Item 18 Notes on the Accounts).

**Assessment as a Going Concern**

In conjunction with the assessment of viability, the Directors have also assessed the short-term cash flow forecasts and debt refinancing requirements.

The Group has, at the date of this report, sufficient existing financing available for its estimated requirements for at least the next 12 months and beyond in

respect of general corporate purposes, including in respect of the Master Settlement Agreement and State Settlement Agreements due in the U.S. in 2026 and

other known liabilities or future payments (including interim dividends).

The Group has £72 million of future contractual commitments (2024: £67 million) related to property, plant and equipment, as discussed in note 13 in Part III

- Item 18 Notes on the Accounts.

After reviewing the Group's annual budget, plans and financing arrangements, including the availability of a £5.0 billion revolving credit facility, the

Directors consider that the Group has adequate resources to continue operating and that it is therefore appropriate to continue to adopt the going concern basis

in preparing this Form 20-F.

**Capital Expenditure** 

See discussion under Item [4.A](#ia53e6ca54d894bde98684b8ab3a259a8_5834).

British American Tobacco p.l.c. Form 20-F 2025<br>

**Hedging Instruments**

As discussed in note [19](#ia53e6ca54d894bde98684b8ab3a259a8_589) in Part III - Item 18 Notes on the Accounts, the Group hedges its exposure to interest rate movements and currency movements.

BAT's cash flow hedges are principally in respect of sales or purchases of inventory and certain debt instruments. A certain number of forward foreign

currency contracts were used to manage the currency profile of external borrowings. Interest rate swaps have been used to manage the interest rate profile of

external borrowings, while cross-currency swaps have been used to manage the currency profile of external borrowings.

**Capital - Borrowings and Net Debt Policy**

The Group utilises cash pooling and zero balancing bank account structures in addition to intercompany loans and borrowings to ensure that there is the

maximum mobilisation of cash within the Group. The key objectives of treasury in respect of cash and cash equivalents are to protect the principal value of

the Group's cash and cash equivalents, to concentrate cash at the centre to minimise the required long-term debt issuance, including perpetual hybrid debt

treated as an equity instrument, and to optimise the yield earned. The amount of debt the Group issues is determined by forecasting the net debt requirement

after the mobilisation of cash. Subsidiary companies are funded by share capital and retained earnings, loans from the central finance companies on

commercial terms or through local borrowings by the subsidiaries in appropriate currencies. All contractual borrowing covenants have been met and none

are expected to inhibit the Group's operations or funding plans.

**Borrowings and Net Debt**

Total borrowings (which includes lease liabilities) decreased to £35,070 million in 2025 (2024: £36,950 million).

In 2025, translational foreign exchange, particularly related to the relative movement of the US dollar and Euro, was a tailwind of £1,810 million (2024:

£204 million headwind).

The movement in borrowings is impacted by the net repayment of bonds, as discussed on page [48](#if480002097db40398fdb9f41dec2daee_106452), driven by the cash generated by the business after payment of

dividends to shareholders.

Total borrowings include £591 million(31 December 2024: £670 million) in respect of the purchase price allocation adjustments related to the acquisition of Reynolds

American Inc.

As discussed on page[48](#if480002097db40398fdb9f41dec2daee_106450), the Group remains confident about its ability to access the debt capital markets successfully and reviews its options on a continuing basis.

Net debt is a non-GAAP measure and is defined as total borrowings (including related derivatives and lease liabilities) less cash and cash equivalents and

current investments held at fair value.

Net debt, at 31 December 2025, was £31,215 million (2024: £31,253 million), with the movement driven by:

–Net cash generated from operating activities , described on page [48](#if480002097db40398fdb9f41dec2daee_119505);

–Net cash from investing activities, described on page [48](#if480002097db40398fdb9f41dec2daee_119504);

–Net cash used in financing activities, described on page [49](#if480002097db40398fdb9f41dec2daee_119503); and

–A foreign exchange tailwind of £1,121 million in 2025 (2024: £674 million headwind).

The following table sets out the Group's long- and short-term borrowings as of the dates indicated:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | | | As of 31 December (£m)<sup>1</sup> | As of 31 December (£m)<sup>1</sup> | As of 31 December (£m)<sup>1</sup> |
| | <br>Currency | <br>Maturity dates | <br>Interest rates at 31 December 2025 | **2025** | 2024 | 2023 |
| Eurobonds<sup>2</sup> | Euro | 2027 to 2045 | 1.3% to 5.4% | **4931** | 5236 | 5569 |
|  | UK sterling | 2026 to 2055 | 2.3% to 6.0% | **1993** | 2291 | 3097 |
|  | Swiss franc | 2026 | 1.4% | **236** | 221 | 234 |
| Bonds issued pursuant to <br>rules under the U.S. <br>Securities Act (as amended)<sup>2</sup><br>| US dollar | 2026 to 2055 | 1.7% to 8.1% | **26655** | 28268 | 29913 |
| Commercial paper<sup>2</sup> |  |  |  | **—** |  |  |
| Other loans |  |  |  | **—** |  | 100 |
| Bank loans |  |  |  | **689** | 211 | 216 |
| Bank overdrafts |  |  |  | **37** | 138 | 103 |
| Finance leases |  |  |  | **529** | 585 | 498 |
| **Total** |  |  |  | **35070** | 36950 | 39730 |

---

**Notes:**

1. The financial data above has been extracted from the Group's consolidated financial statements.

2. The issuers of these debt securities are B.A.T. International Finance p.l.c., B.A.T Capital Corporation, Reynolds American Inc., or R.J. Reynolds Tobacco Company, as applicable. British American Tobacco

p.l.c. is the ultimate guarantor in each case.

Perpetual hybrid bonds issued by the Company have been classified as equity and therefore excluded from borrowings.

Please refer to [note 23](#ia53e6ca54d894bde98684b8ab3a259a8_601) in Part III - Item 18 Notes on the Accounts for further details.

**Off-Balance Sheet Arrangements and Contractual Obligations** 

Except for certain indemnities, the Group has no significant off-balance sheet arrangements other than in respect of leaf purchase obligations. The Group has

contractual obligations to make future payments on debt guarantees. In the normal course of business, it enters into contractual arrangements where the

Group commits to future purchases of goods and services from unaffiliated and related parties.

It is anticipated that the Group will utilise a combination of cash generated from operations in the normal course of business, accessing available financing

facilities and the refinancing of existing debt.

The Group's undiscounted contractual obligations as of 31 December 2025 were as follows:

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Payments due by period (£m)  | Payments due by period (£m)  | Payments due by period (£m)  | Payments due by period (£m)  | Payments due by period (£m)  |
| | **Total** | Less than <br>1 Year<br>| 1–3 Years  | 3–5 Years  | Thereafter  |
| Long-term notes and other borrowings, exclusive of interest<sup>1</sup> | **33970** | 2639 | 6608 | 4259 | 20464 |
| Interest payments related to long-term notes<sup>1</sup> | **571** | 571 |  |  |  |
| Lease liabilities | **529** | 153 | 179 | 82 | 115 |
| Purchase obligations<sup>2</sup> | **919** | 852 | 67 |  |  |
| **Total cash obligations** | **35989** | 4215 | 6854 | 4341 | 20579 |

---

**Notes:**

1. For more information about the Group's long-term debt, see note 23 in Part III - Item 18 Notes on the Accounts.

2. Purchase obligations primarily include commitments to acquire tobacco leaf. Purchase orders for the purchase of other raw materials and other goods and services are not included inthe table, as the Group's

operating subsidiaries are not able to determine the aggregate amount of such purchase orders that represent contractual obligations, as purchase orders typically represent authorisations to purchase rather than

binding agreements.

The table above does not include any amounts that the Group may pay to fund its retirement benefit plans as the timing and amount ofany such future

funding are unknown and dependent on, among other things, the future performance of defined benefit pension plan assets, interest rate assumptions and

other factors. The net retirement benefit scheme assets totalled £79 million as of 31 December 2025, which is net of pension assets of £6,302 million. The

Group expects to be required to contribute £22 million to its defined benefit plans during 2026. See note 15 in Part III - Item 18 Notes on the Accounts for

further information.

The above table also excludes any amounts in relation to service contracts which are disclosed in note 31 in Part III - Item 18 Notes on the Accounts. The

Group has £72 million of future contractual commitments (2024: £67 million) related to property, plant and equipment and £6 million of future contractual

commitments (2024: £5 million) related to intangible assets.

**Retirement Benefit Schemes**

The Group's subsidiary undertakings operate defined benefit schemes, including pension and post-retirement healthcare schemes, and defined contribution

schemes. The most significant arrangements are in the U.S., the UK, Canada, Germany, Switzerland and the Netherlands. Together, schemes in these

territories account for over 90% of the total underlying obligations of the Group's defined benefit arrangements and over 60% of the current service cost.

Benefits provided through defined contribution schemes are charged as an expense as payments fall due. The liabilities arising in respect of defined benefit

schemes are determined in accordance with the advice of independent, professionally qualified actuaries, using the projected unit credit method. It is Group

policy that all schemes are formally valued at least every three years. Contributions to the defined benefit schemes are determined after consultation with the

respective trustees and actuaries of the individual externally funded schemes, taking into account regulatory environments.

The present total value of funded scheme liabilities as at 31 December 2025 was £5,404 million (2024: £5,705 million), while unfunded scheme liabilities

amounted to £695 million (2024: £734 million). The fair value of scheme assets decreased to £6,302 million from £6,612 million in 2024. The overall position

for all pension and healthcare schemes in Group subsidiaries amounted to a net asset of £79 million at the end of 2025, compared to a net asset of £117 million

at the end of 2024.

In respect of the UK Pension Fund, on 19 September 2025, the trustee entered into a buy-out transaction with Pension Insurance Corporation plc, with a

premium of £28 million paid on22 September 2025 by the trustee from fund assets at that time. Please see note 15 in Part III - Item 18 Notes on the

Accounts for further details.

**Litigation and Settlements**

As discussed in note 31 in Part III - Item 18 Notes on the Accounts, various legal proceedings or claims are pending or may be instituted against the Group.

**Government Activity**

The marketing, sale, taxation and use of tobacco products have been subject to substantial regulation by government and health officials for many years.

For information about the risks related to regulation, see page [23](#ide5f87a436e64e08804b395e5625472a_672189).

**Summarised financial information**

The following summarised financial information is required by the rules of the Securities and Exchange Commission and has been prepared as a requirement

of the Regulation S-X 3-10 in respect of the guarantees of:

–US$6.89 billion of outstanding bonds issued by B.A.T Capital Corporation (BATCAP) in connection with the acquisition of Reynolds American Inc.

(Reynolds American), including registered bonds issued in exchange for the initially issued bonds (the 2017 Bonds);

–US$10.12 billion of outstanding bonds issued by BATCAP pursuant to the Shelf Registration Statement on Form F-3 filed on July 17, 2019, US$8.8 billion

of outstanding bonds issued by BATCAP pursuant to the Shelf Registration Statement on Form F-3 filed on July 1, 2022 and US$0.75 billion of outstanding

bonds issued by BATCAP pursuant to the Shelf Registration Statement on Form F-3 filed on July 1, 2025 pursuant to which BATCAP, BATIF or the

Company may issue an indefinite amount of debt securities; and

–US$2.50 billion of outstanding bonds issued by BATIF pursuant to the Shelf Registration Statement on Form F-3 filed on July 17, 2019, and US$1 billion of

outstanding bonds issued by BATIF pursuant to the Shelf Registration Statement on Form F-3 filed on July 1, 2022, pursuant to which BATCAP, BATIF or

the Company may issue an indefinite amount of debt securities.

As of July 28, 2020, all relevant Group entities suspended their reporting obligations with respect to the US$4.6 billion (2024: US$6.7 billion) of Reynolds

American unsecured notes and US$22.1 million (2024: US$22.1 million) of Lorillard unsecured notes. As such, no summarised financial information is

provided with respect to these securities.

As described below, Reynolds American is a subsidiary guarantor of all outstanding series of BATCAP and BATIF bonds. Under the terms of the indentures

governing such notes, any subsidiary guarantor (including Reynolds American) other than BATCAP or BATIF, as applicable, BATNF and BATHTN, will

automatically and unconditionally be released from all obligations under its guarantee, and such guarantee shall thereupon terminate and be discharged and of

no further force or effect, in the event that (1) its guarantee of all then outstanding notes issued under the Group's EMTN Programme is released or (2) at

substantially the same time its guarantee of the debt securities is terminated, such subsidiary guarantor is released from all obligations in respect of indebtedness

for borrowed money for which such subsidiary guarantor is an obligor (as a guarantor or borrower). Under the EMTN Programme, Reynolds American's

guarantee is released if at any time the aggregate amount of indebtedness for borrowed money, subject to certain exceptions, for which Reynolds American is

an obligor does not exceed 10% of the outstanding long-term debt of BAT as reflected in the balance sheet included in BAT's most recent publicly released

interim or annual consolidated financial statements.

British American Tobacco p.l.c. Form 20-F 2025<br>

Reynolds American's guarantee may be released notwithstanding Reynolds American guaranteeing other indebtedness, provided Reynolds American's

guarantee of outstanding notes issued under the EMTN Programme is released. If Reynolds American's guarantee is released, BAT is not required to replace

such guarantee, and the debt securities will have the benefit of fewer subsidiary guarantees for the remaining maturity of the debt securities.

**Note:** 

The following summarised financial information report the unconsolidated contribution of each applicable company to the Group's consolidated results and not the separate financial statements for each applicable

company as local financial statements are prepared in accordance with local legislative requirements and may differ from the financial information provided below. In particular, in respect of the U.S. region, all

financial statements and financial information provided by or with respect to the U.S. business or RAI (and/or RAI and its subsidiaries (collectively, the Reynolds Group)) are prepared on the basis of U.S. GAAP

and constitute the primary financial statements or financial information of the U.S. business or RAI (and/or the Reynolds Group). Solely for the purpose of consolidation within the results of BAT p.l.c. and the BAT

Group, this financial information is then converted to IFRS. To the extent any such financial information provided in these financial statements relates to the U.S. business or RAI (and/or the Reynolds Group), it is

provided as an explanation of the U.S. business's or RAI's (and/or the Reynolds Group's) primary U.S. GAAP based financial statements and information.

The subsidiaries disclosed below are wholly-owned and the guarantees provided are full and unconditional, and joint and several:

a.British American Tobacco p.l.c. (as the parent guarantor), referred to as 'BAT p.l.c.' in the financials below;

b.B.A.T Capital Corporation (as an issuer or a subsidiary guarantor, as the case may be), referred to as 'BATCAP' in the financials below;

c.B.A.T. International Finance p.l.c. (as an issuer or a subsidiary guarantor, as the case may be), referred to as 'BATIF' in the financials below;

d.B.A.T. Netherlands Finance B.V. (as a subsidiary guarantor), referred to as 'BATNF' in the financials below;

e.Reynolds American Inc. (as a subsidiary guarantor), referred to as 'RAI' in the financials below; and

f.British American Tobacco Holdings (The Netherlands) B.V. (as a subsidiary guarantor of the 2017 Bonds only), referred to as 'BATHTN' in the financials

below.

In accordance with Regulation S-X 13-01, information in respect of investments in subsidiaries that are not issuers or guarantors has beenexcluded from

non-current assets as shown in the balance sheet table below. The 'BATHTN' column in the summarised financial information is only applicable in the

context of the 2017 Bonds. British American Tobacco Holdings (The Netherlands) B.V. (BATHTN) isnot an issuer nor guarantor of any of the other

securities referenced in this note. None of the issuers or other guarantors has material balances with or an investment in BATHTN. Investments in

subsidiaries represents share capital acquired in relation to or issued by subsidiary undertakings.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Summarised Financial Information** | **Summarised Financial Information** | **Summarised Financial Information** | **Summarised Financial Information** | **Summarised Financial Information** | **Summarised Financial Information** |
| <br>**Year ended 31 December 2025** | **BAT p.l.c.**<br>**£m**<br>| **BATCAP**<br>**£m**<br>| **BATIF**<br>**£m**<br>| **BATNF**<br>**£m**<br>| **RAI**<br>**£m**<br>| **BATHTN**<br>**£m**<br>|
| **Income Statement** |  |  |  |  |  |  |
| Revenue | **—** | **—** | **—** | **—** | **—** | **—** |
| (Loss)/profit from operations | **(170)** | **(3)** | **—** | **—** | **—** | **3** |
| Dividend income | **7432** | **—** | **1** | **—** | **6111** | **44** |
| Net finance income/(costs) | **448** | **(35)** | **224** | **—** | **(561)** | **(65)** |
| Profit/(loss) before taxation | **7710** | **(38)** | **225** | **—** | **5550** | **(18)** |
| Taxation on ordinary activities | **(15)** | **9** | **4** | **—** | **125** | **(87)** |
| **Profit/(loss) for the year** | **7695** | **(29)** | **229** | **—** | **5675** | **(105)** |
| **Intercompany Transactions – Income Statement** |  |  |  |  |  |  |
| Transactions with non-issuer/non-guarantor subsidiaries (expense)/<br>income<br>| **(167)** | **1** | **—** | **—** | **30** | **—** |
| Transactions with non-issuer/non-guarantor subsidiaries net finance <br>income<br>| **293** | **769** | **777** | **—** | **22** | **—** |
| Dividend income from non-issuer/non-guarantor subsidiaries | **7432** | **—** | **—** | **—** | **6111** | **44** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Summarised Financial Information | Summarised Financial Information | Summarised Financial Information | Summarised Financial Information | Summarised Financial Information | Summarised Financial Information |
| Year ended 31 December 2024 | BAT p.l.c.<br>£m<br>| BATCAP<br>£m<br>| BATIF<br>£m<br>| BATNF<br>£m<br>| RAI<br>£m<br>| BATHTN<br>£m<br>|
| **Income Statement** |  |  |  |  |  |  |
| Revenue |  |  |  |  |  |  |
| (Loss)/profit from operations | (149) | (9) | (20) |  |  | 1 |
| Dividend income | 6477 |  |  |  | 5263 | 185 |
| Net finance income/(costs) | 501 | (81) | 1062 | 1 | (496) | (34) |
| Profit/(loss) before taxation | 6829 | (90) | 1042 | 1 | 4767 | 152 |
| Taxation on ordinary activities | (9) | (9) | (5) |  | 111 | (89) |
| **Profit/(loss) for the year** | 6820 | (99) | 1037 | 1 | 4878 | 63 |
| **Intercompany Transactions – Income Statement** |  |  |  |  |  |  |
| Transactions with non-issuer/non-guarantor subsidiaries (expense)/<br>income<br>| (152) | (9) | (17) |  | 31 | (1) |
| Transactions with non-issuer/non-guarantor subsidiaries net finance <br>income<br>| 316 | 563 | 1234 |  | 24 |  |
| Dividend income from non-issuer/non-guarantor subsidiaries | 6477 |  |  |  | 5263 | 185 |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Summarised Financial Information** | **Summarised Financial Information** | **Summarised Financial Information** | **Summarised Financial Information** | **Summarised Financial Information** | **Summarised Financial Information** |
| <br>**As at 31 December 2025** | **BAT p.l.c.**<br>**£m**<br>| **BATCAP**<br>**£m**<br>| **BATIF**<br>**£m**<br>| **BATNF**<br>**£m**<br>| **RAI**<br>**£m**<br>| **BATHTN**<br>**£m**<br>|
| **Balance Sheet** |  |  |  |  |  |  |
| Non-current assets | **1076** | **19255** | **2184** | **1436** | **12** | **1** |
| Current assets | **12062** | **23153** | **47989** | **50** | **1364** | **7** |
| Non-current liabilities  | **1575** | **18908** | **9469** | **1436** | **8618** | **3** |
| Non-current borrowings | **1571** | **18813** | **9295** | **1436** | **8572** | **—** |
| Other non-current liabilities  | **4** | **95** | **174** | **—** | **46** | **3** |
| Current liabilities  | **65** | **23502** | **36502** | **49** | **1647** | **283** |
| Current borrowings | **32** | **23471** | **36261** | **49** | **195** | **1** |
| Other current liabilities  | **33** | **31** | **241** | **—** | **1452** | **282** |
| **Intercompany Transactions – Balance Sheet** |  |  |  |  |  |  |
| Amounts due from non-issuer/non-guarantor subsidiaries | **11175** | **13946** | **51965** | **—** | **1342** | **8** |
| Amounts due to non-issuer/non-guarantor subsidiaries | **2** | **2728** | **36622** | **—** | **1** | **1** |
| Investment in subsidiaries (that are not issuers <br>or guarantors)<br>| **27234** | **—** | **718** | **—** | **23892** | **1549** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Summarised Financial Information | Summarised Financial Information | Summarised Financial Information | Summarised Financial Information | Summarised Financial Information | Summarised Financial Information |
| As at 31 December 2024 | BAT p.l.c.<br>£m<br>| BATCAP<br>£m<br>| BATIF<br>£m<br>| BATNF<br>£m<br>| RAI<br>£m<br>| BATHTN<br>£m<br>|
| **Balance Sheet** |  |  |  |  |  |  |
| Non-current assets | 1917 | 18996 | 2292 | 1358 | 292 | 77 |
| Current assets | 9736 | 18504 | 46197 | 48 | 1221 | 15 |
| Non-current liabilities  | 1577 | 18503 | 11526 | 1358 | 7707 | 20 |
| Non-current borrowings | 1571 | 18257 | 11227 | 1358 | 7657 |  |
| Other non-current liabilities  | 6 | 246 | 299 |  | 50 | 20 |
| Current liabilities  | 72 | 19010 | 32984 | 47 | 3257 | 129 |
| Current borrowings | 37 | 18967 | 32708 | 46 | 1751 | 1 |
| Other current liabilities  | 35 | 43 | 276 | 1 | 1506 | 128 |
| **Intercompany Transactions - Balance Sheet** |  |  |  |  |  |  |
| Amounts due from non-issuer/non-guarantor subsidiaries | 9690 | 15082 | 50595 |  | 1478 | 15 |
| Amounts due to non-issuer/non-guarantor subsidiaries | 2 | 3942 | 32707 |  | 2 | 1 |
| Investment in subsidiaries (that are not issuers <br>or guarantors)<br>| 27234 |  | 718 |  | 25659 | 1466 |

---

**Perpetual hybrid bonds** 

On 27 September 2021, BAT p.l.c. issued two €1 billion perpetual hybrid bonds. During 2025, the Group repurchased €1 billion of perpetual hybrid bonds

and issued a further €1.2 billion of perpetual hybrid bonds. The perpetual hybrid bonds have been classified as equity as there is no contractual obligation to

either repay the principal or make payments of interest (note 22(d)) in Part III - Item 18 Notes on the Accounts.

BAT p.l.c.'s unconsolidated contribution to the Group's consolidated equity results is shown below:

**BAT p.l.c.**

---

| | | |
|:---|:---|:---|
| As at 31 December  | **2025**<br>**£m**<br>| 2024<br>£m<br>|
| **Total equity** | **38732** | 37238 |
| Share capital | **577** | 585 |
| Share premium | **123** | 121 |
| Perpetual hybrid bonds | **1893** | 1685 |
| Other equity | **36139** | 34848 |

---

**Item 5. C - Research and development, patents and licenses, etc.**

**Expenditure on research and development**, including employee benefit costs and depreciation, was £358 million in2025 (2024: £380 million; 2023:

£408 million), with a focus on products that could potentially reduce the risk associated with smoking conventional cigarettes.

Demonstrating the reduced-risk<sup>\*†</sup> status of Smokeless products, compared to smoking, can only be done with robust science. Every year we invest significantly to

find innovative ways to contribute to THR.

British American Tobacco p.l.c. Form 20-F 2025<br>

We use various analytical and pre-clinical techniques, specialised laboratory technology and expertise to test our products, and aim to ensure they meet high

quality standards. This is complemented by collaborations with global external researchers, and clinical research organisations, who bring

independent, specialist expertise that enhance ourinternalcapabilities.

We are always innovating, experimenting, and delivering new THR solutions. This is why our Science and Product Innovation are so important,

accelerating pioneering approaches to our Smokeless products.

We invested approximately £276 million in 2025 on the research and development of New Category products. We continue to enhance our capabilities while

collaborating with researchers around the globe.

\*Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.

†Products sold in the U.S., including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.

**Patents and trademarks**

Our trademarks, which include the brand names under which our products are sold, are key assets which we consider, in the aggregate, to be important to the

business as a whole. As well as protecting our brand names by way of trademark registration, we also protect our innovations by means of patents and

designs in key global jurisdictions.

**Item 5. D - Trend information**

**As a global business, operating at scale within a rapidly evolving landscape, our markets are shaped by long-term consumer, economic,** 

**cultural and social trends. We continue to respond to this changing environment by developing and advancing our strategy and long-**

**term priorities.**

The trends in and their potential effects on our business are discussed throughout in Item [3.D](#ia53e6ca54d894bde98684b8ab3a259a8_5548) Risk Factors, Item [4.B](#ia53e6ca54d894bde98684b8ab3a259a8_10) Business Overview, Item [5.A](#ia53e6ca54d894bde98684b8ab3a259a8_7535) Operating

Results and Item 5.B Liquidity and Capital Resources above. In addition, we emphasize the trend of consumers increasingly accepting alternatives to

traditional cigarettes.

**The Global Nicotine Market** 

The global nicotine market is evolving at a rapid pace, characterised by the growing presence of oral nicotine and heated products across multiple

jurisdictions, and the continued uptake of vapour products by smokers. This remains a complex and fast-moving landscape, as new Reduced-Risk Products

(RRPs)<sup>\*†</sup> are developed and launched globally.

**Global Market for Combustibles and Smokeless**

The latest data indicates that the legal global tobacco and nicotine market was worth around US$939 billion in 2024. Combustible cigarettes remain, by a

considerable margin, the largest product category within this market.

Although cigarettes are among the most heavily regulated consumer products globally – and despite legal cigarette volumes being forecast to decline by around

0.2% over 2024-2029 – roughly 20% of the world's adult population continue to choose to smoke.

Without access to suitable smokeless alternatives, a sizeable proportion of this group is likely to maintain their current patterns of consumption.

The U.S. combustibles industry continues to be negatively impacted by the adult nicotine consumer migration to alternative nicotine products (Vapour and

pouches). The level of poly-usage for combustibles consumers continued to increase as part of the consumer migration journey, reaching 53% in 2025, up 4

ppts from 2023. In addition, continued consumer affordability pressure resulted in downtrading to the deep-discount category (in which the Group is not

present).

**Transformation Driving Quality Growth**

Our corporate purpose is to build A Better Tomorrow™ by reducing the health impact of our business. To accelerate the next phase of our transformation, we

are committed to Building a Smokeless World. We will deploy our global multi-category portfolio to actively encourage adult smokers – who would

otherwise continue to smoke – to Switch to Better\*† nicotine products, and continue to seek long-term opportunities Beyond Nicotine in Wellbeing and

Stimulation,realising the multi-stakeholder benefits of A Better Tomorrow™.

Our commitment is demonstrated by our ambition to become a predominantly smokeless business, with over 50% of our revenue from Smokeless products by

2035. Revenue growth in the global nicotine industry is accelerating through the development of New Categories.

We continue to make progress towards our target of 50 million adult consumers of our Smokeless products by 2030, adding another 4.7 million in 2025 to a

total of 34.1 million.

Prioritising where and which products to focus on within the largest profit pools guides our resource allocation decisions. Our New Categories business

continues to deliver profitable growth, on a category contribution basis. Category Contribution reflects the marginal contribution of the categories to the

Group's financial performance. This measure includes all attributable revenue and costs.

We strive to continue to profitably and responsibly manage our transition away from combustibles, generating funds to further invest in our transformation

and deliver sustainable profit growth and cash flow over the long-term.

In order to achieve this, our refined strategic pillars will act as our executional compass, and we will measure performance using KPIs to track our journey.

A product transformation programme is underway to enable a simpler and rationalised product portfolio to enable adjusted gross margin growth.

As part of this, we continue to refine the number of tobacco leaf grades, blends, cigarette formats and stock keeping units (SKUs) in our portfolio.

To deliver category contribution growth, we will focus on marketing spend optimisation and on simplifying our combustibles portfolio to enable the delivery of

a managed combustibles transition.

**Building a Sustainable Future for Our Stakeholders**

Building a Sustainable Future is about seeking to actively migrate smokers – who would otherwise continue to smoke – away from cigarettes and to

smokeless alternatives sustainably, responsibly and with integrity.

BAT's vision is to Build a Smokeless World. As we transition to A Better Tomorrow™, we are committed to doing so responsibly – by reducing our reliance

on natural resources, managing our environmental impact and respecting human rights across our business operations and supply chain. Through these actions,

we are enhancing business resilience and positioning BAT for enduring success in a rapidly evolving landscape. At the same time, we strive to create meaningful

impact in the communities where we operate and empower our people to drive positive change. Our sustainability strategy is anchored in four interconnected

impact areas - Climate, Nature, Circularity, and Communities - beyond Tobacco Harm Reduction. By focusing on these impact areas, we aim to mitigate risks,

strengthen resilience, and create positive value across our value chain. As our 2025 targets reach maturity, we have set four clear targets under each strategic pillar

to guide our efforts through 2030 and beyond. These targets enable us to proactively manage sustainability impacts, regulatory changes, and evolving stakeholder

expectations. Action plans are already underway, and we are committed to tracking and transparently sharing our progress as our transformation continues. Our

British American Tobacco p.l.c. Form 20-F 2025<br>

achievements to date, including significant reductions in GHG emissions, water use and waste, and value chain collaboration demonstrate our commitment to

deliver.

As we continue working towards reducing the health impact of our products and further embedding sustainability in our business, we seek to drive growth,

create shared value and build a stronger, more resilient BAT.

**Our THR Approach**

We aim to provide smokers – who would otherwise continue to smoke – with a choice of Smokeless products that deliver similar satisfaction to cigarettes in

their nicotine delivery, use, and sensorial experience. For example, while we are clear that our New Category products (excluding certain products within the

Modern Oral category) are not cessation products and are not marketed as such, some independent studies suggest that vapour products are more successful

than nicotine replacement therapy in helping people stop smoking<sup>2</sup> by providing a satisfactory alternative.

With four global categories of reduced-risk<sup>\*†</sup> products: Heated Products, Vapour Products, Oral Tobacco Products and Modern Oral Products, significant

progress has been made. It is estimated that there are now more than 115 million<sup>3</sup> consumers of Smokeless products globally. The latest estimate of the

global number of vapour product consumers alone is over 86 million<sup>4</sup>.

Stakeholders increasingly expect us to demonstrate that we are a purpose-driven business, and to continue to make progress towards our ambition to Build a

Smokeless World.

Demonstrating the reduced-risk<sup>\*†</sup> status of Smokeless products, compared to smoking, can only be done with robust science. Every year we invest significantly to

find innovative ways to contribute to THR.

We use various analytical and pre-clinical techniques, specialised laboratory technology and expertise to test our products, and aim to ensure they meet high

quality standards. This is complemented by collaborations with global external researchers, and clinical research organisations, who bring

independent, specialist expertise that enhance ourinternalcapabilities.

We are always innovating, experimenting, and delivering new THR solutions. This is why our Science and Product Innovation are so important,

accelerating pioneering approaches to our Smokeless products.

**THR substantiation**

As most smokeless alternatives are relatively new to the market, they lack long-term epidemiological data that could show their overall impact on public

health. Therefore, it is necessary to take a 'weight of evidence' approach, using the best available data to draw conclusions.

Drawing on work by the U.S. Institute of Medicine, we use our nine-step risk assessment framework. This evaluates theemissions, exposure and risk profile of

our Smokeless products and compares them to cigarettes or other comparators.

In terms of THR scientific substantiation, our New Category products have been evaluated in peer-reviewed pre-clinical, clinical, and population level

research publications and journals, summarising significant reductions in emissions, exposure and risk markers versus smoking.

We aim to follow best practice and adhere to high standards of governance and ethics in all our scientific research. We publish our science, which undergoes

rigorous peer-reviews, and we participate at global scientific conferences. As of 31 December 2025, our scientists have published 276 scientific papers about

our Smokeless products.

**Dynamic Business Making Active Choices for the Future**

Our multi-category portfolio benefits from decades of consumer insights that have driven our No. 1 global revenue position in combustibles.

In addition, leveraging the benefits of our expertise in science and R&D, our manufacturing, distribution and marketing has enabled us to build three global

New Category brands, Vuse, glo and Velo, delivering over £3 billion of annual revenue.

Our long-standing experience operating within complex regulatory, legal and fiscal frameworks provides us with a compelling competitive advantage to

transform within the wider tobacco industry over the long-term. With our Corporate and Regulatory Affairs function we are driving a more proactive,

science-led engagement with all stakeholders.

We will continue to increase investment in new capabilities, including enhancing our innovation pipeline, leading responsible New Category development

and further leveraging our broad digital enablers. Our transformation will also be accelerated by a culture of inclusivity and collaboration, supported by senior

talent recruitment from a diverse range of industries. Together with our Chief People Officer, we are focused on developing a skills-enabled and performance-

driven organisation.

We continuously monitor and assess our capital allocation framework to:

–unlock shareholder value through investing in the right opportunities;

–optimise the return on our investments;

–maximise our cash generation;

–reduce our leverage; and

–generate sustainable cash returns for our shareholders.

**Notes:**

\*Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.

†Products sold in the U.S., including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.

3. Tobacco Intelligence, Regulatory & Market Intelligence for Alternative Tobacco & Nicotine Products, Nicotine Pouch Market Database, Quarter 1 Report. 2024.

4. WHO global report on trends in prevalence of tobacco use 2000-2024 and projections 2025-2030. Geneva: World Health Organization; 2025. Available at: www.who.int/publications/i/item/9789240116276.

**Item 6 - Directors, senior management and employees**

**Item 6. A - Directors and senior management**

**Board of Directors**

Note: \* denotes external listed company appointments

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| |
|:---|
| Luc Jobin |
| **Chair**(66)<br>Chair of the Nominations Committee<br>|
| **Nationality**:Canadian<br>**Appointed**: Chair since April 2021; Non-Executive Director since July 2017<br>**Experience**: Luc was President and Chief Executive Officer of Canadian National Railway Company from July 2016 until March 2018, following his <br>tenure as Executive Vice President and Chief Financial Officer between June 2009 and June 2016. He was Executive Vice President of Power Corporation <br>of Canada, an international financial services company. Prior to this, Luc was Chief Executive Officer of Imperial Tobacco Canada, having previously <br>served as Executive Vice President and Chief Financial Officer. Luc also served as an independent Non-Executive Director of Reynolds American Inc., <br>from 2008 until its acquisition by the Group<br>**Relevant skills and contribution to the Board**: Luc contributes deep financial, regulatory and M&A expertise and business transformation experience to <br>the Board. His extensive knowledge of North American markets and consumer businesses enhances the Board's strategic perspective<br>**External appointments**: No external appointments<br>|

---

---

| |
|:---|
| **Tadeu Marroco** |
| Chief Executive(59) |
| **Nationality**: Brazilian<br>**Appointed**: Chief Executive since May 2023; Director since August 2019<br>**Experience**: Tadeu was appointed Chief Executive in May 2023, having first joined the Main Board as Finance and Transformation Director in August <br>2019. Tadeu joined the Group in 1992 and joined the Management Board as Director, Business Development in 2014. He subsequently held roles on the <br>Management Board as Regional Director, Western Europe, and Regional Director, Europe and North Africa, and Director, Group Transformation, and <br>Deputy Finance Director<br>**Relevant skills and contribution to the Board**: Tadeu brings to the Board a wealth of strategic leadership, management, and innovation experience drawn <br>from finance and general leadership roles across the Group. His understanding of the business and proven ability to drive transformation position him to <br>lead the Group in delivering our ambition to Build a Smokeless World and create A Better Tomorrow<sup>TM</sup><br>**External appointments**: No external appointments<br>|

---

---

| |
|:---|
| **Holly Keller Koeppel** |
| Senior Independent Director(67)<br>Member of the Nominations Committee<br>|
| **Nationality:**American<br>**Appointed:**Senior Independent Director since April 2024; Non-Executive Director since July 2017<br>**Experience:**Until 2018, Holly was Senior Advisor to Corsair Capital LLC following her tenure as Managing Partner and Co-Head of Infrastructure. Prior to that, she <br>was Co-Head of Citi Infrastructure Investors, and held financial and general leadership roles at Consolidated Natural Gas Company and American Electric Power <br>Company, Inc. (AEP), where she ultimately served as Chief Financial Officer. She previously served as independent Non-Executive Director of Reynolds American <br>Inc., from 2008 until its acquisition by the Group and of Vesuvius plc<br>**Relevant skills and contribution to the Board:**Holly's extensive international financial management experience across a range of industry sectors <br>enables her to make significant and informed contributions to the Board<br>**External appointments:**<br>–Non-Executive Director and member of the Audit and Risk Committee and the Sustainability Committee of Shell plc\*<br>–Non-Executive Director and Chair of the Audit Committee of Flutter Entertainment plc\*<br>–Director and Chair of the Financial Audit Committee of AES Corporation\*<br>–Director and Governance, HS&E Committee Member of Core Natural Resources, Inc.\*<br>|

---

---

| |
|:---|
| **Krishnan (Kandy) Anand** |
| Non-Executive Director(68)<br>Chair of the Remuneration Committee; member of the Nominations Committee<br>|
| **Nationality:** American<br>**Appointed:** February 2022<br>**Experience:** Kandy has held leadership roles across a number of major consumer goods companies. At Molson Coors Brewing Company he was Chief <br>Growth Officer, CEO of Molson Coors International and Head of Strategy, M&A and Transformation. He also held key positions at the Coca-Cola <br>Company, including President, Coca-Cola Philippines and Vice President, Global Commercial Leadership. Earlier in his career, Kandy held marketing <br>leadership positions at Unilever plc. Kandy previously served on the boards of Popeyes Louisiana Kitchen Inc. and Empower Acquisition Company<br>**Relevant skills and contribution to the Board:** Kandy brings valuable international expertise to the Board. His experience across the consumer goods <br>sector enables him to contribute key insights in commercial marketing, strategic growth and transformation<br>**External appointments:**<br>–Director of Wingstop Inc.\*<br>–Chief Executive Officer of Igniting Business Growth L.L.C.<br>|

---

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| |
|:---|
| **Karen Guerra** |
| Non-Executive Director (69)<br>Member of the Nominations Committee and Remuneration Committee<br>|
| **Nationality:**British<br>**Appointed:**September 2020<br>**Experience:**Karen has held a range of senior executive roles, including President and Director General of Colgate Palmolive France, and Chair and <br>Managing Director of Colgate Palmolive UK Limited. She previously served as a Non-Executive Director of several leading international companies, <br>including RS Group plc (formerly Electrocomponents p.l.c.), Davide Campari-Milano S.p.A., Paysafe PLC, Inchcape PLC, Samlerhuset BV, Swedish <br>Match AB and Amcor p.l.c. (formerly Amcor Limited)<br>**Relevant skills and contribution to the Board:** Karen brings extensive international experience and commercial acumen to the Board, with particularly <br>valuable contributions in marketing, sales, and consumer goods insights<br>**External appointments:**Independent Director of Société Bic S.A.\*<br>|

---

---

| |
|:---|
| **Uta Kemmerich Keil** |
| Non-Executive Director (59)<br>Member of the Audit Committee and Nominations Committee<br>|
| **Nationality:** German<br>**Appointed:** February 2025<br>**Experience:** Uta previously served as Chief Executive Officer, Personal Healthcare International at Procter & Gamble. Before that, Uta spent 19 years at <br>Merck Group in leadership roles including Chief Executive Officer and President, Consumer Health Division, and Chief Executive Officer, Allegropharma <br>and Global Business Unit Head, Allergy, as well as Head of Corporate M&A, Treasury and Finance. Earlier in her career, Uta was a Senior Financial <br>Auditor at Hoechst AG. Uta was previously Non-Executive Director at Affirmed N.V., Biotest AG, Gothaer Krankenversicherung, and Allgemeine <br>Versicherung<br>**Relevant skills and contribution to the Board:** Uta's extensive transformational and M&A knowledge drawn from her experience across the consumer <br>goods and pharmaceutical sectors enable her to make valuable strategic contributions<br>**External appointments:**<br>–Non-Executive Director and Audit Chair of Beiersdorf AG\*<br>–Non-Executive Director of Klosterfrau Healthcare Group<br>–Non-Executive Director of Schott AG<br>–Director of Farco Pharma GmbH<br>–Advisory board member of Röchling SE & Co KG<br>|

---

---

| |
|:---|
| **Véronique Laury** |
| Non-Executive Director (60)<br>Member of the Audit Committee and Nominations Committee<br>|
| **Nationality:** French<br>**Appointed:** September 2022<br>**Experience:** Throughout her career in international retail, Véronique has held a variety of leadership roles. From 2014 to 2019, she was Chief Executive <br>Officer of Kingfisher plc, an international home improvement company operating well-known brands across Europe including B&Q, Castorama, Brico <br>Dépôt, Screwfix and Koçtaş. During her 16-year tenure at Kingfisher she also served as Chief Executive Officer and Commercial Director at both B&Q <br>and Castorama. Véronique previously served on the Board of WeWork Inc.<br>**Relevant skills and contribution to the Board:** Véronique brings to the Board international experience across complex retail markets, along with valuable <br>expertise in consumer goods, strategy, transformation, and digital innovation<br>**External appointments:** <br>**–**Board member of Inter IKEA Holding B.V.<br>**–**Board member of Eczacıbaşı Holding Company<br>**–**Board member of Société Bic S.A.\*<br>|

---

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| |
|:---|
| **Darrell Thomas** |
| Non-Executive Director (65)<br>Chair of the Audit Committee; member of the Nominations Committee<br>|
| **Nationality:**American<br>**Appointed:**December 2020<br>**Experience:**Darrell most recently served as Vice President and Treasurer for Harley-Davidson, Inc., having previously held senior finance positions <br>including Interim Chief Financial Officer for Harley-Davidson, Inc. and Chief Financial Officer for Harley Davidson Financial Services, Inc. Prior to this, he <br>was Vice President and Assistant Treasurer, PepsiCo, Inc. following 19 years in banking focused on capital markets and corporate finance. Darrell was <br>previously an Independent Director of Pitney Bowes Inc.<br>**Relevant skills and contribution to the Board:**Darrell's extensive operational and management experience and knowledge of capital markets, finance <br>and treasury enhances the Board's strategic and financial oversight<br>**External appointments:**<br>–Non-Executive Director of Vontier Corporation\*<br>–Independent Director of Dorman Products Inc.\*<br>–Non-Executive Director of Scotia Holdings (US) Inc.<br>–Member of the Finance Committee of Sojourner Family Peace Center, Inc.<br>|

---

---

| |
|:---|
| **Serpil Timuray**  |
| Non-Executive Director (56)<br>Member of the Nominations Committee and Remuneration Committee<br>|
| **Nationality:**Turkish/British<br>**Appointed:**December 2023<br>**Experience:**Serpil served on Vodafone plc's Group Executive Committee from 2014 to June 2025, holding roles including CEO of Vodafone <br>Investments, CEO of Europe Cluster, Group Chief Commercial and Strategy Officer, and CEO of Africa, Middle East, Asia, Pacific. Prior to joining <br>Vodafone in 2009 as CEO of Vodafone Türkiye, Serpil was CEO of Danone Dairy Türkiye. Her career began in marketing at Procter & Gamble where she <br>was subsequently a member of their Türkiye Executive Committee. Previously, Serpil was a Non-Executive Director and Chair of the Corporate Social <br>Responsibility Committee at Danone plc, and held various Non-Executive Director roles in technology, including at TPG Telecom plc<br>**Relevant skills and contribution to the Board:**Serpil's proven international CEO experience in delivering large-scale transformations and growth in <br>complex, regulated, and competitive markets across the technology, telecommunications and fast-moving consumer goods sectors enables her to contribute <br>valuable strategic, operational, and marketing insights to the Board<br>**External appointments:**<br>–Founding Chair of Change the Face Alliance<br>–Board member of World Economic Forum's Digital Leaders of Europe<br>–Board member of World Turkish Business Council<br>|

---

---

| |
|:---|
| **Matthew Wright** |
| Non-Executive Director (63)<br>Member of the Nominations Committee and Remuneration Committee<br>|
| **Nationality:**British<br>**Appointed:**November 2025<br>**Experience:**From 1993 to 2013, Matthew held several senior roles at the global leadership consultancy Russell Reynolds Associates, including Chief <br>Executive, President, and Board Member. He also served as Head of Asia and Europe, and was a member of both the Global Executive Committee and the <br>Global Operating Committee. Earlier in his career, he held roles at Korn/Ferry International, Knight Wendling, and Cripps Leadership Advisors (formerly <br>Cripps Sears Ltd)<br>**Relevant skills and contribution to the Board:**Matthew brings extensive experience to the Board, having led and advised global organisations through <br>periods of growth and transformation. His proven leadership capabilities and strong people skills enhance the Board's ability to foster a culture aligned with <br>BAT's vision for a sustainable future<br>**External appointments:**<br>–Non-Executive Director of Berry Bros. & Rudd Ltd<br>–Chairman of Cripps Leadership Advisors<br>–Chair Designate and Senior Advisor of Movemeon<br>|

---

**Independence**

The Board considers the Chair and all Non-Executive Directors to be independent under the independence requirements outlined in the NYSE listing standards.

The Board considers all Non-Executive Directors to be independent, as they are free from any business or other relationships that could interfere materially with, or

appear to affect, their judgement.

Luc Jobin was determined by the Board to be independent on his appointment as Chair, as reported in the Company's Annual Report and Form 20-F for

2020. The Board has determined Holly Keller Koeppel to be independent, having taken into account her service on the board of Reynolds American Inc. (Reynolds

American) as an independent, non-executive director. Luc and Holly were originally appointed to the Board in 2017 following the acquisition of Reynolds

American and pursuant to the Agreement and Plan of Merger with Reynolds American.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Management Board**

For Tadeu Marroco's full biography please refer to page [56](#i7a539186f55b481db9d10e58f788edb9_0-0-1-1-1249938) above.

---

| |
|:---|
| **Javed Iqbal** |
| Interim Chief Financial Officer and Director, Digital and Information(53) |
| **Nationality:** Pakistani<br>Javed is currently Interim Chief Financial Officer, having been appointed on 26 August 2025. He also previously served as Interim Finance Director from <br>May 2023 to April 2024. Javed joined the Management Board as Director, Digital and Information in April 2022. He originally joined BAT in 1996 as a <br>Management Trainee, Finance. Since then Javed has held a number of senior roles, including Area Director for Middle East, South Asia and North Africa <br>|

---

---

| |
|:---|
| **James Barrett** |
| Director, Business Development(51) |
| **Nationality:**British<br>James joined the Management Board as Director, Business Development in September 2023. He has been with BAT since joining as a Management <br>Trainee in 1996. During his career at BAT, James has held various senior roles in finance globally, including Group Finance Controller, Head of M&A and <br>most recently, Consumer Director, Beyond Nicotine<br>|

---

---

| |
|:---|
| **Luciano Comin** |
| Chief Marketing Officer(56) |
| **Nationality:**Italian/Argentinian<br>Luciano was appointed Chief Marketing Officer in September 2024. He first joined the Management Board in 2019 as Regional Director, Americas and Sub-Saharan Africa, <br>and has since served in several roles including Marketing Director, Combustibles and Marketing Director, Combustibles & New Categories. Luciano has held a number of <br>senior regional marketing roles during his career at BAT, having first joined in 1992<br>|

---

---

| |
|:---|
| **Zafar Khan** |
| Director, Operations(53) |
| **Nationality:**Pakistani<br>Zafar joined the Management Board as Director, Operations in February 2021. Having first joined BAT in 1996, Zafar has held senior roles including Regional <br>Head of Operations Asia Pacific & Middle East, Group Head of Plan, Service & Logistics, Regional Head of Plan and Service for Western Europe, Head of <br>Operations, Bangladesh, and Group Head of New Categories Operations<br>|

---

---

| |
|:---|
| **Dr Cora Koppe-Stahrenberg** |
| Chief People Officer(60) |
| **Nationality:**German<br>Cora joined the Management Board as Chief People Officer in November 2023. Immediately prior to joining BAT, she was Global Head of Human <br>Resources at Fresenius Medical Care, a publicly listed global healthcare company. Earlier in her career she held senior HR leadership roles at various <br>multinational companies across the financial services sector<br>|

---

---

| |
|:---|
| **Paul McCrory** |
| Director, Legal and General Counsel(53) |
| **Nationality:**Irish<br>Paul was appointed as Director, Legal and General Counsel on 1 January 2026. He first joined the Management Board as Director, Corporate and <br>Regulatory Affairs in September 2023, and has been with BAT since 2006. During his career at BAT, Paul has held a number of senior roles including <br>Head of Commercial Legal and Assistant General Counsel Corporate and Group Company Secretary<br>|

---

---

| |
|:---|
| **Pascale Meulemeester** |
| Regional Director, Asia-Pacific, Middle East and Africa(46) |
| **Nationality:**Belgian<br>Pascale was appointed to the Management Board as Regional Director, Asia-Pacific, Middle East and Africa from 1 January 2026, having joined <br>BAT in September 2025. She previously held several senior roles at Barry Callebaut Group, a global chocolate and cocoa organisation, most <br>recently serving as President Western Europe. Earlier in her career at Barry Callebaut Group she led growth and transformation in different <br>geographies, including in the Asia-Pacific region. Prior to this Pascale spent several years at Mars Inc. following her time at Sara Lee Corporation<br>|

---

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| |
|:---|
| **Fred Monteiro** |
| Regional Director, Americas & Europe(59) |
| **Nationality:**Brazilian<br>Fred joined the Management Board in April 2023 as Regional Director for the Americas & Europe. Having first joined BAT in 1987, he has held a number <br>of roles including as Area Director for Central Europe South, General Manager of BAT Japan, Marketing Director for BAT's Next Generation Products <br>business and Regional Head of Marketing for Europe and North Africa<br>|

---

---

| |
|:---|
| **Dr James Murphy** |
| Director, Research and Science(50) |
| **Nationality:**Irish<br>James was appointed Director, Research and Science in March 2023, having joined the Management Board in February 2023. He has been with BAT for <br>more than 19 years in various senior roles including EVP U.S. Scientific Research & Development based in the U.S., as well as Group Head of PRRP <br>Science and Regional Product Manager for Americas and Sub-Saharan Africa<br>|

---

---

| |
|:---|
| **Johan Vandermeulen** |
| Chief Operating Officer(58) |
| **Nationality:**Belgian<br>Johan was appointed Chief Operating Officer in July 2023. He initially joined the Management Board in 2014 as Regional Director for Eastern Europe, Middle East and <br>Africa, and was subsequently Regional Director, Asia-Pacific and Middle East. He has been with BAT for more than 30 years, and has held previous roles including <br>General Manager in Russia and Turkey and Global Brand Director for Kent <br>|

---

---

| |
|:---|
| **David Waterfield** |
| President and CEO, Reynolds American Inc.(53) |
| **Nationality:**British<br>David joined the Management Board as President and CEO of Reynolds American Inc. in July 2023. He first joined BAT in 1998. During his career at BAT he has <br>held previous roles including Regional Marketing Manager, Eastern Europe and Middle East Area, Area Director for Western Europe and Head of International <br>Brand Group<br>|

---

---

| |
|:---|
| **Kingsley Wheaton** |
| Chief Corporate Officer(53) |
| **Nationality:**British<br>Kingsley was appointed Chief Corporate Officer in September 2024. On 1 October 2025 he additionally assumed the responsibilities of the role of Director, <br>Corporate and Regulatory Affairs. He has held several Management Board positions since 2012, most recently as Chief Strategy & Growth Officer. He <br>joined the Group in 1996 and has held various senior marketing positions, including Managing Director, Next Generation Products, Regional Director, <br>Americas and Sub-Saharan Africa, Chief Marketing Officer, and Chief Growth Officer<br>|

---

British American Tobacco p.l.c. Form 20-F 2025<br>

**Item 6. B - Compensation**

**Summary of the Current Remuneration Policy**

The current Remuneration Policy was approved by shareholders at the AGM on 16 April 2025.

---

| |
|:---|
| **Current Directors' Remuneration Policy – Summary** |
| **Fixed Pay – Salary** |
| Attracts and retains high-calibre individuals to deliver the Group's long term strategy. Salaries are reviewed annually, taking into account factors including individual <br>performance, experience and business performance, and reference appropriate market data<sup>1</sup> and the approach taken for the general UK employee population. Annual <br>salary increases for the Chief Executive will be held at or below the UK employee average for the lifetime of the Remuneration Policy.<br>|
| **Fixed Pay – Pensions and Benefits**  |
| Pension provides competitive post-retirement benefits arrangements in the form of a Defined Contribution benefit equivalent to a maximum of up to 15% <br>of salary, aligned with the rate applicable to the wider UK workforce. Market competitive benefits are provided consistent with the role.<br>|
| **Short-Term Incentive**<sup>2</sup> |
| Incentivises the attainment of corporate targets aligned to the Group's strategic objectives on an annual basis, with a deferred element to ensure alignment <br>with shareholders' interests. The Chief Executive's on-target opportunity is 125% of salary and maximum is 250% of salary. The Chief Financial Officer's <br>on-target opportunity is 100% of salary and maximum is 200% of salary. The STI is normally awarded 50% in cash and 50% in shares. Once the minimum <br>shareholding requirements have been met, further STI awards will normally be awarded 75% in cash and 25% in shares. Malus and clawback provisions <br>apply. <br>|
| **Long-Term Incentive**<sup>2</sup> |
| A combination of stretching targets aligned with long-term strategy delivery that provides a balance relevant to the Group's business and market conditions <br>as well as alignment between Executive Directors' and shareholders' interests. Awards granted under the Group's PSP vest and are released to participants <br>five years from the grant date, only to the extent that the performance conditions are satisfied at the end of the three-year performance period, and an <br>additional holding period of two years has been completed. Annual maximum award of 600% of salary for the Chief Executive and 450% of salary for the <br>Chief Financial Officer. Malus and clawback provisions apply. <br>|
| **Shareholding (including post-employment)** |
| Strengthens the long-term alignment between the interests of Executive Directors and shareholders. Executive Directors are required to hold BAT shares <br>equal to the value of 600% of salary for the Chief Executive and 450% for the Chief Financial Officer during their service, and post-employment are <br>required to maintain the same level of shareholding (or, if lower, their shareholding on their cessation date) until the second anniversary of cessation of <br>employment.<br>|

---

**Notes:**

1. International Pay Comparator group: Altria, AstraZeneca, Bayer, Coca-Cola, Danone, Diageo, GlaxoSmithKline, Heineken, Imperial Brands, Kraft Heinz, L'Oréal, LVMH, Mondelēz International, Nestlé, Nike,

Novartis, Procter & Gamble, PepsiCo, Philip Morris International, Reckitt Benckiser, Siemens, Unilever and Vodafone.

2. Further details on the performance measures for the performance period ended 31 December 2025 can be found on pages[63](#i7f61e46191684bd8bf47ec92404e732a_282416) and [64](#i7f61e46191684bd8bf47ec92404e732a_282550).

**Malus and Clawback**

Amounts paid under the STI are subject to clawback provisions, and awards made under the Deferred Share Bonus Scheme (DSBS) and the Performance

Share Plan (PSP) are subject to malus and clawback provisions. Malus and clawback provisions apply to DSBS awards and the cash portion of the STI for the

duration of three years from the date of the award and to PSP awards for the duration of five years from the date of award. The Committee considers these time

horizons appropriate, recognising the nature and performance timeframes of each incentive whilst providing sufficient time to identify and address any issues

that may arise. Malus and clawback may be applied in circumstances including where:

–there has been a material misrepresentation in relation to the performance of any Group company, relevant business unit and/or the participant;

–an erroneous calculation was made in assessing the extent to which an award vested or bonus was paid, which in either case resulted in the value of the award or payment

being more than it should have been;

–participant misconduct;

–participant caused a material loss for any Group company as a result of (a) reckless, negligent or wilful actions, or (b) inappropriate behaviour or behaviour that is not aligned

with the Group's corporate values;

–participant contributed to serious reputational damage of any Group company or one of its business units; or

–there is an insolvency event or corporate failure.

Where the Committee determines that these provisions are to be applied, the number of shares subject to outstanding awards may be reduced (malus) and/or

the participant may be required to repay up to the excess value which was paid or vested (clawback). Clawback may also be effected by the number of shares

subject to outstanding awards being reduced and/or by a reduction in other cash or share-based awards held by the participant.

The above provisions are supplemented by the additional malus and clawback policy which is compliant with the requirements of the New York Stock

Exchange (the NYSE) listing standards for NYSE-listed companies to adopt malus and clawback policies that meet the requirements of the Dodd-Frank Act

and the SEC's final rules implementing clawback provisions of the Dodd-Frank Act (i.e., cases in which there has been an accounting restatement due to

material non-compliance with any financial reporting requirement under the securities laws).

The Committee confirms that no malus or clawback provisions were applied during the reporting year.

British American Tobacco p.l.c. Form 20-F 2025<br>

The below section of this Item 6.B - Compensation sets out the Executive Directors' remuneration for the year ended 31 December 2025.

**Executive Director remuneration earned in the year ended 31 December 2025**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Single figure of remuneration** | **Single figure of remuneration** | **Single figure of remuneration** | **Single figure of remuneration** | **Single figure of remuneration** |
|  | Executive Directors | Executive Directors | Executive Directors | Executive Directors |
|  | Tadeu Marroco | Tadeu Marroco | Soraya Benchikh<sup>1</sup> | Soraya Benchikh<sup>1</sup> |
| £'000 | **2025** | 2024 | **2025** | 2024 |
| Salary<sup>2</sup> | 1410 | 1374 | 525 | 533 |
| Pension | 212 | 206 | 69 | 70 |
| Taxable benefits<sup>3</sup> | 249 | 206 | 357 | 411 |
| Other emoluments<sup>4</sup> | 8 | 4 |  | 2 |
| Short-Term Incentives | 2743 | 2700 | 817 | 796 |
| Long-Term Incentives<sup>5,6</sup> | 1954 | 1606 |  |  |
| Incentives buyout |  |  |  | 2969 |
| **Total Remuneration** | **6576** | 6096 | **1768** | 4781 |
| Total Fixed Pay | 1871 | 1786 | 951 | 1014 |
| Total Variable Pay<sup>7</sup> | 4705 | 4310 | 817 | 3767 |

---

**Notes:**

1. Soraya Benchikh stepped down from the Board on 26 August 2025, and as such the figures shown for the 2025 financial year are for the part of the year during which Ms Benchikh served on the Board. Soraya

Benchikh's 2024 salary was pro-rated from her start date with BAT on 1 May 2024. Please refer to page [77](#i5609ff1984d34d9e97a4760570555b9a_78192) for further details with regards to Payments to past Directors.

2. Tadeu Marroco's 2025 salary figure reflects the increases applied during the year, i.e. it was £1,384,000 per annum between 1 January and 31 March and £1,419,000 per annum between 1 April and 31 December

2025. Soraya Benchikh's 2025 salary figure reflects the increases applied during the year i.e. it was £800,000 per annum between 1 January and 31 March and £828,000 per annum between 1 April and 26 August

2025. 3.Soraya Benchikh's 2025 taxable benefits include standard benefits with a total sum of £118,655, and relocation payments with a total sum of £237,736 which cover the schooling and housing support agreed as

part of her appointment terms.

4. The amounts included as Other emoluments relate to the all-employee share schemes: (1) Share Reward Scheme representing the value of ordinary shares awarded in 2025 in line with the scheme rules, and the

(2) Sharesave Scheme representing the face value of the discount on options exercised during the year, if applicable.

5. The 2023 LTI award is due to vest, by reference to performance on 22 March 2026, based on completion of the three-year performance period on 31 December 2025. The value shown is based on the average

share price for the three-month period ended 31 December 2025 of 4,099p and includes accumulated notional dividends. 27.5% of the value of the award is attributable to share price appreciation. The actual

value of shares to vest will be the value on 22 March 2028, when the award will fully vest after the expiry of the additional two-year extended vesting period.

6. LTIP values shown for 2024 have been restated to reflect the actual closing BAT share price of 3,136p on the date the awards were adjusted for performance and include accumulated dividends.

7. No malus or clawback provisions were applied during the year.

The following sections provide further detail on the figures in the above table, including the underlying calculations and assumptions and the Committee's

performance assessment for variable remuneration.

---

| |
|:---|
| **Salary** |
| Salaries are normally reviewed annually in February with salary changes effective from April. Tadeu Marroco's salary was increased by 2.5% (from <br>£1,384,000 to £1,419,000) and Soraya Benchikh's base salary was increased by 3.5% (from £800,000 to £828,000) in April 2025. Both increases were <br>below the average level of the wider UK workforce (4%).  |
| Salaries are normally reviewed annually in February with salary changes effective from April. Tadeu Marroco's salary was increased by 2.5% (from <br>£1,384,000 to £1,419,000) and Soraya Benchikh's base salary was increased by 3.5% (from £800,000 to £828,000) in April 2025. Both increases were <br>below the average level of the wider UK workforce (4%).  |
| Salaries are normally reviewed annually in February with salary changes effective from April. Tadeu Marroco's salary was increased by 2.5% (from <br>£1,384,000 to £1,419,000) and Soraya Benchikh's base salary was increased by 3.5% (from £800,000 to £828,000) in April 2025. Both increases were <br>below the average level of the wider UK workforce (4%).  |

---

---

| | | |
|:---|:---|:---|
| **Pension** |  |  |
| The pension values shown in the table represent company contributions of up to 15% of an annual <br>base salary to the Defined Contribution arrangements in line with the contribution level for the <br>wider UK workforce. No excess retirement benefits have been paid to, or receivable by, the <br>Executive Directors in 2025 and neither was entitled to defined benefits pension arrangements. | £'000 | Employer pension <br>contributions<br>|
| The pension values shown in the table represent company contributions of up to 15% of an annual <br>base salary to the Defined Contribution arrangements in line with the contribution level for the <br>wider UK workforce. No excess retirement benefits have been paid to, or receivable by, the <br>Executive Directors in 2025 and neither was entitled to defined benefits pension arrangements. | Tadeu Marroco | £212 |
| The pension values shown in the table represent company contributions of up to 15% of an annual <br>base salary to the Defined Contribution arrangements in line with the contribution level for the <br>wider UK workforce. No excess retirement benefits have been paid to, or receivable by, the <br>Executive Directors in 2025 and neither was entitled to defined benefits pension arrangements. | Soraya Benchikh | £69 |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Benefits** |  |  |  |  |  |  |  |  |
| The table below summarises the benefits provided to the Executive Directors in 2025. Where relevant, the costs include VAT and a gross-up for tax.  | The table below summarises the benefits provided to the Executive Directors in 2025. Where relevant, the costs include VAT and a gross-up for tax.  | The table below summarises the benefits provided to the Executive Directors in 2025. Where relevant, the costs include VAT and a gross-up for tax.  | The table below summarises the benefits provided to the Executive Directors in 2025. Where relevant, the costs include VAT and a gross-up for tax.  | The table below summarises the benefits provided to the Executive Directors in 2025. Where relevant, the costs include VAT and a gross-up for tax.  | The table below summarises the benefits provided to the Executive Directors in 2025. Where relevant, the costs include VAT and a gross-up for tax.  | The table below summarises the benefits provided to the Executive Directors in 2025. Where relevant, the costs include VAT and a gross-up for tax.  | The table below summarises the benefits provided to the Executive Directors in 2025. Where relevant, the costs include VAT and a gross-up for tax.  | The table below summarises the benefits provided to the Executive Directors in 2025. Where relevant, the costs include VAT and a gross-up for tax.  |
| £'000 | Car or car <br>allowance<br>| Health insurance | Tax <br>advice<br>| Company <br>driver<br>| Security<sup>1</sup> | Relocation <br>benefits<sup>2</sup><br>| Other<sup>3</sup> | Total Benefits |
| Tadeu <br>Marroco<sup>4</sup><br>| £1 | £14 | £67 | £30 | £75 |  | £62 | £249 |
| Soraya <br>Benchikh<sup>4,5</sup><br>| £13 | £22 | £10 | £16 |  | £238 | £58 | £357 |

---

**Notes:**

1. Security costs relate to property security assessment, installation of security system, annual maintenance and monitoring of personal and home security systems.

2. Soraya Benchikh received the second instalment of the housing (£181,132 gross) and schooling (£56,604 gross) payments in relation to 2025 in line with her appointment terms.

3. Other benefits include expenses relating to attendance at company-sponsored events which are treated by HMRC as taxable benefit in the United Kingdom. The amounts include tax gross-up, where relevant.

4. In addition to taxable benefits, other non-taxable benefits were provided to Executive Directors including Life and Accident Insurance.

5. Soraya Benchikh stepped down from the Board on 26 August 2025, and as such the figures shown are for the part of the year during which Ms Benchikh served on the Board. Please refer to page [77](#i5609ff1984d34d9e97a4760570555b9a_78192) for further

details with regards to Payments to past Directors.

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | |
|:---|:---|
| **Short-Term Incentive outcomes for the 2025 award**  | **Short-Term Incentive outcomes for the 2025 award**  |
| In 2025, we maintained focus in delivering against our strategic priorities, reinforcing our commitment to the Group's ambition of transforming into a <br>predominantly Smokeless business. Our STI performance metrics support a balanced focus on top and bottom-line delivery, emphasising returns on <br>incremental investment as we continue to transform and invest in new products and innovations. From 2025, we have introduced the 'Sustainability – <br>Climate' metric, with a 10% weighting. The reduction in greenhouse gas emissions is a key priority for the Group. This metric directly supports our stated <br>ambition to reduce Scope 1 and 2 emissions from our operations by 50% by 2030 (versus 2020 baseline) and is directly linked to our externally reported <br>targets. | In 2025, we maintained focus in delivering against our strategic priorities, reinforcing our commitment to the Group's ambition of transforming into a <br>predominantly Smokeless business. Our STI performance metrics support a balanced focus on top and bottom-line delivery, emphasising returns on <br>incremental investment as we continue to transform and invest in new products and innovations. From 2025, we have introduced the 'Sustainability – <br>Climate' metric, with a 10% weighting. The reduction in greenhouse gas emissions is a key priority for the Group. This metric directly supports our stated <br>ambition to reduce Scope 1 and 2 emissions from our operations by 50% by 2030 (versus 2020 baseline) and is directly linked to our externally reported <br>targets. |
| Total revenue growth (10%)  | Group revenue growth was 2.1% at constant rates of exchange, resulting in <br>maximum outcome for this performance measure.<br>|
| Adjusted profit from operations growth (30%)  | Adjusted profit from operations (as adjusted for Canada, at constant rates) <br>increased by 2.3% to £11,628 million, resulting in a 20.3% outcome out of a <br>30% maximum for this performance measure. <br>|
| Adjusted cash generated from operations (25%) | Cash delivery (including U.S. tax that was deferred from 2024 and paid in <br>2025) continued to be strong, realising £7,140 million of adjusted cash <br>generated from operations (at constant rates), resulting in maximum <br>outcome for this performance measure. <br>|
| Transformation metrics |  |
| New Categories revenue growth (12.5%) | New Categories revenue (at constant rates) increased by 7.0% to £3,673 <br>million, resulting in no payout as threshold performance for this <br>performance measure was not achieved.<br>|
| New Categories adjusted gross profit margin improvement (12.5%) | New Categories gross profit margin continued to improve increasing by <br>2.1%, resulting in maximum outcome for this performance measure. <br>|
| Sustainability (10%) | Delivered a 46.6% reduction in Scope 1 and 2 GHG emissions from our <br>2020 baseline, resulting in maximum outcome for this performance <br>|

---

The table below illustrates STI performance compared to the targets.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **STI performance measures, weightings and outcomes for the year ended 31 December 2025** | **STI performance measures, weightings and outcomes for the year ended 31 December 2025** | **STI performance measures, weightings and outcomes for the year ended 31 December 2025** | **STI performance measures, weightings and outcomes for the year ended 31 December 2025** | **STI performance measures, weightings and outcomes for the year ended 31 December 2025** | **STI performance measures, weightings and outcomes for the year ended 31 December 2025** | **STI performance measures, weightings and outcomes for the year ended 31 December 2025** | **STI performance measures, weightings and outcomes for the year ended 31 December 2025** |
| Measure<sup>1</sup> |  | Weighting | Threshold (0%) | Maximum (100%) | Result | Outcome (max) | Outcome (max) |
| Total revenue growth | Year on year % growth at <br>constant rates of exchange<br>| 10% | 1.0% | 2.0% | +2.1% | 10.0% | (10.0)% |
| Adjusted profit from <br>operations growth<sup>2</sup><br>| Year on year % growth at <br>constant rates of exchange <br>(as adjusted for Canada)<br>| 30% | 1.5% | 2.8% | +2.3% | 20.3% | (30.0)% |
| Adjusted cash <br>generated from <br>operations<br>| Annual adjusted cash <br>generated from operations <br>at constant rates of <br>exchange<br>| 25% | £6.5bn | £6.8bn | £7.1bn | 25.0% | (25.0)% |
| New Categories <br>revenue growth<br>| Year on year improvement % revenue from Vapour, <br>HP and Modern Oral at <br>constant rates<br>| 12.5% | 9.0% | 15% | +7.0% | 0.0% | (12.5)% |
| New Categories <br>adjusted gross profit <br>margin improvement <br>| Year on year % accretion <br>of Vapour, HP and <br>Modern Oral products at <br>constant rates of exchange<br>| 12.5% | 0.8% | 1.8% | +2.1% | 12.5% | (12.5)% |
| Sustainability | % reduction (versus 2020 <br>baseline) in Scope 1 and 2 <br>GHG emissions<br>| 10.0% | 42.6% | 46.3% | 46.6% | 10.0% | (10.0)% |
| **Total outcome as % of maximum**  | **Total outcome as % of maximum**  | **Total outcome as % of maximum**  |  |  | **77.8%**  | **77.8%**  | (100)% |

---

**Notes:**

1. Non-GAAP measures: New Categories revenue, New Categories adjusted gross profit margin, adjusted profit from operations and adjusted cash generated from operations are non-GAAP measures consistent

with the Group's assessment of performance for remuneration purposes. Please refer to pages [70](#i7f61e46191684bd8bf47ec92404e732a_387234) to [73](#i7f61e46191684bd8bf47ec92404e732a_414886) for definitions of these measures and a reconciliation of these measures to the most directly comparable IFRS

measure where applicable.

2. Due to the initial uncertainty surrounding the timing of the implementation of the Approved Plans in Canada, the STI targets for 2025 were set excluding the Canadian business. Therefore, the performance of the

2025 adjusted profit from operations was reviewed as adjusted for Canada, excluding New Categories (at constant rates). The 2024 adjusted profit from operations outcome figure was therefore also adjusted to

exclude 100% of the Canadian business (excluding New Categories). This approach is consistent with management's assessment of the Group's performance as it relates to Canada.

Following evaluation of the formulaic outcomes of the STI, the Committee considered the results against the underlying performance of the Group

and concluded that the outcomes were a fair reflection of performance delivered in what continues to be challenging and volatile market conditions

and no adjustments were required.

Under the Remuneration Policy, 50% of the annual STI is ordinarily deliverable as an award of BAT shares under DSBS, reducing to 25% once

Executive Directors have met their shareholding requirements. DSBS awards will be deferred for a three-year period and will be released in March

2029. For performance year 2025, 25% of the STI will be delivered in shares under the DSBS for Tadeu Marroco as his shareholding requirement has

been met as at 31 December 2025 (please refer to page [66](#i7f61e46191684bd8bf47ec92404e732a_387862) for details). In accordance with the Directors' Remuneration Policy, the 2025 STI for Ms

Benchikh will be paid fully in cash and pro-rated in line with the agreed separation arrangements.

British American Tobacco p.l.c. Form 20-F 2025<br>

The 2025 STI outcome for the Executive Directors is as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **STI outcome for the year ended 31 December 2025** | **STI outcome for the year ended 31 December 2025** | **STI outcome for the year ended 31 December 2025** | **STI outcome for the year ended 31 December 2025** | **STI outcome for the year ended 31 December 2025** | **STI outcome for the year ended 31 December 2025** | **STI outcome for the year ended 31 December 2025** | **STI outcome for the year ended 31 December 2025** | **STI outcome for the year ended 31 December 2025** | **STI outcome for the year ended 31 December 2025** |
|  | Base salary for <br>2025 (£'000)<br>|  | Maximum <br>opportunity as % of <br>base salary<br>|  | STI outcome (out <br>of 100%)<br>|  | STI award achieved <br>(£'000)<sup>1</sup><br>| Delivered <br>in cash (£'000)<br>| Deferred <br>in shares (£'000)<br>|
| Tadeu Marroco | £1,410 | x | 250% | x | 77.8% | = | £2,743 | £2,057 | £686 |
| Soraya Benchikh<sup>2</sup> | £525 | x | 200% | x | 77.8% | = | £817 | £817 | £0 |

---

**Notes:** 

1. Malus and clawback provisions apply. No further performance conditions apply.

2. Soraya Benchikh stepped down from the Board on 26 August 2025, and as such the figures shown for the 2025 financial year are for the part of the year during which Soraya served on the Board.

---

| | |
|:---|:---|
| **Long-Term Incentive outcome for the 2023-2025 award** | **Long-Term Incentive outcome for the 2023-2025 award** |
| The 2023 LTIP measures below were set under the terms of our 2022 Directors' Remuneration Policy. The performance over the three-year period reflected <br>mixed delivery against the targets. Strong operating cash flow conversion and resilient shareholder returns were delivered; however, adjusted EPS, Group <br>revenue growth and New Categories revenue growth did not meet the thresholds, resulting in no vesting for these measures. Since target-setting for the <br>2023 LTI award, there have been changes in the Group's operating environment which could not have been anticipated at the time targets were confirmed, <br>therefore, the 2023 LTI outcome should be considered in this context. In particular, the continued growth of illicit vapour products in key markets was not <br>anticipated. These developments adversely impacted performance over the period, with the most pronounced impact on New Categories revenue and a <br>broader impact on Group revenue metrics. The performance results were assessed over the three-year period from 2023 - 2025 as follows: | The 2023 LTIP measures below were set under the terms of our 2022 Directors' Remuneration Policy. The performance over the three-year period reflected <br>mixed delivery against the targets. Strong operating cash flow conversion and resilient shareholder returns were delivered; however, adjusted EPS, Group <br>revenue growth and New Categories revenue growth did not meet the thresholds, resulting in no vesting for these measures. Since target-setting for the <br>2023 LTI award, there have been changes in the Group's operating environment which could not have been anticipated at the time targets were confirmed, <br>therefore, the 2023 LTI outcome should be considered in this context. In particular, the continued growth of illicit vapour products in key markets was not <br>anticipated. These developments adversely impacted performance over the period, with the most pronounced impact on New Categories revenue and a <br>broader impact on Group revenue metrics. The performance results were assessed over the three-year period from 2023 - 2025 as follows: |
| Total shareholder return (TSR) (20%) | BAT TSR ranked 5th amongst our TSR peers resulting in 17.6% vesting for this measure. |
| Adjusted diluted earnings per share (EPS) <br>(30%)<br>| Adjusted diluted EPS is measured at current and constant rates of exchange (equally weighted). The three-<br>year EPS compound annual growth rate (CAGR) was 0.2% and 4.1% at current and constant rates, <br>respectively, resulting in no vesting for this measure. <br>|
| Group revenue growth (15%) | The three-year Group revenue CAGR was 2.2% at constant rates of exchange, resulting in no vesting for <br>this measure. <br>|
| New Categories revenue growth (15%) | The three-year New Categories revenue CAGR was 12.1% at constant rates of exchange, resulting in no <br>vesting for this measure. <br>|
| Operating cash flow conversion ratio (20%) | We have continued to demonstrate the ongoing strength of the Group in turning operating performance into <br>cash, resulting in a 100.6% operating cash flow conversion ratio at current rates of exchange over the three <br>years, resulting in full vesting for this measure.<br>|

---

The table below illustrates performance compared to the targets.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **LTI performance measures, weightings and outcomes for the year ended 31 December 2025** | **LTI performance measures, weightings and outcomes for the year ended 31 December 2025** | **LTI performance measures, weightings and outcomes for the year ended 31 December 2025** | **LTI performance measures, weightings and outcomes for the year ended 31 December 2025** | **LTI performance measures, weightings and outcomes for the year ended 31 December 2025** | **LTI performance measures, weightings and outcomes for the year ended 31 December 2025** | **LTI performance measures, weightings and outcomes for the year ended 31 December 2025** | **LTI performance measures, weightings and outcomes for the year ended 31 December 2025** |
| Measure<sup>1</sup> |  | Weighting | Threshold (0%) | Maximum (100%) | Result | Outcome (max) | Outcome (max) |
| Relative TSR<sup>2</sup> | Relative to a peer group of <br>international FMCG <br>companies<br>| 20% | Median | UQ | 5th | 17.6% | (20)% |
| EPS growth at <br>current rates of <br>exchange<sup>3</sup><br>| Compound annual growth <br>in adjusted diluted EPS <br>measured at current rates of <br>exchange<br>| 15% | 5% | 10% | 0.2% | 0.0% | (15)% |
| EPS growth at <br>constant rates of <br>exchange<sup>3</sup><br>| Compound annual growth <br>in adjusted diluted EPS <br>measured at constant rates <br>of exchange<br>| 15% | 5% | 10% | 4.1% | 0.0% | (15)% |
| Group revenue <br>growth<sup>3</sup><br>| Compound annual growth <br>measured at constant rates <br>of exchange<br>| 15% | 3% | 5% | 2.2% | 0.0% | (15)% |
| New Categories <br>revenue growth<br>| Compound annual New <br>Categories growth <br>measured at constant rates <br>of exchange<br>| 15% | 20% | 30% | 12.1% | 0.0% | (15)% |
| Operating cash flow <br>conversion ratio<br>| Ratio over the performance <br>period at current rates of <br>exchange<br>| 20% | 85% | 95% | 100.6% | 20.0% | (20)% |
| **Total vesting as % of maximum** | **Total vesting as % of maximum** |  |  |  | **37.6%** | **37.6%** | (100)% |

---

**Notes:**

1.**Non-GAAP measures:** Adjusted diluted EPS (at current and constant rates of exchange), Group revenue (at constant rates of exchange), New Categories revenue (at constant rates of exchange) and operating

cash flow conversion ratio are non-GAAP measures used by the Remuneration Committee to assess performance of the 2023-2025 LTI. Please refer to pages [70](#i7f61e46191684bd8bf47ec92404e732a_387234) to [73](#i7f61e46191684bd8bf47ec92404e732a_414889) for definitions of these measures and a

reconciliation of these measures to the most directly comparable IFRS measure where applicable.

2.**Relative TSR:** Peer group constituents for the 2023-2025 LTIP were: Altria Group, Anheuser-Busch InBev, Carlsberg, Coca-Cola, Diageo, Heineken, Imperial Brands, Japan Tobacco, PepsiCo, Pernod Ricard,

Philip Morris International, Procter & Gamble, Reckitt Benckiser, and Unilever.

3. In assessing performance results for the 2023 LTI award against the targets set at the start of the performance period, performance has been assessed by (i) removing the impact of the disposal of the Russian and

Belarusian businesses from the 2023 and 2024results; and (ii) consistent with management's approach to assessing the performance of Canada as applied for 2025, Group revenue growth reflects the full

consolidation of the Canadian business. Adjusted earnings per share has, however, been adjusted to exclude the contribution from Canada (excluding New Categories), reflecting the removal of 100% of the profit

after interest and tax from all sources in Canada (excluding New Categories) from the Group's performance.

British American Tobacco p.l.c. Form 20-F 2025<br>

Following evaluation of the formulaic outcomes for the LTI, the Committee considered the results against the underlying performance of the Group and

concluded that the outcomes were a fair reflection of performance delivered in what continues to be challenging and volatile market conditions and no

adjustments were required on this basis. In addition, the Committee considered share price fluctuations over the period since grant, and were satisfied no

windfall gains have occurred. The Committee concluded that share price growth over the vesting period reflects genuine growth in value due to true

performance and enhanced future prospects, which is reflected in both Chief Executive's remuneration and shareholder experience and, therefore, no

adjustment to the award is required. The Committee noted that the value of the 2023 award is at this stage indicative. Shares will not be released to the Chief

Executive until after the expiration of the two-year additional extended vesting period on 22 March 2028

The 2023–2025 LTIP outcome for the Executive Directors is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **2023-2025 LTIP outcome** | **2023-2025 LTIP outcome** | **2023-2025 LTIP outcome** | **2023-2025 LTIP outcome** | **2023-2025 LTIP outcome** | **2023-2025 LTIP outcome** | **2023-2025 LTIP outcome** |
|  | Shares awarded | Vesting %  | Number of shares <br>to vest<br>| Dividend equivalent<br>£'000<sup>1</sup><br>| **Total value to vest**<br>**£'000**<sup>2</sup><br>| **Impact of share price** <br>**change £'000**<sup>3</sup><br>|
| Tadeu Marroco | 108165 | 37.6% | 40670 | £287 | **£1,954** | **£459** |

---

**Notes:**

1. Value of the dividend equivalents accrued on the proportion of the award that is due to vest only. Dividend equivalents will be delivered as shares following the expiry of the two-year extended vesting period on

22 March 2028.

2. The value of ordinary shares to vest is calculated using the average share price for the three-month period ended 31 December 2025 of 4,099p. The actual value of shares to vest will be the value on 22 March

2028, when the award fully vests and is released to the Chief Executive.

3.27.5% of the value of the award is attributable to share price appreciation and no discretion has been exercised as a result of share price appreciation or depreciation.

The below table details the shares awarded under the PSP and DSBS during the 2025 financial year.

**Details in relation to scheme interests granted during the year ended 31 December 2025.**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | Plan | Date of award | Shares awarded<sup>1</sup> | Market price<br>at award (pence)<sup>2</sup><br>| Face value <br>£'000<br>| Performance <br>period<sup>3</sup><br>| Date from which shares <br>will be released<br>|
| Tadeu Marroco | PSP | 17 Apr 2025 | 261214 | 3179 | 8304 | 2025-2027 | 17 Apr 2030 |
| Tadeu Marroco | DSBS<sup>4</sup> | 20 Mar 2025 | 42462 | 3179 | 1350 | n/a | 20 Mar 2028 |
| Soraya Benchikh<sup>5</sup> | PSP | 17 Apr 2025 | 113243 | 3179 | 3600 | 2025-2027 | 17 Apr 2030 |
|  | DSBS<sup>4</sup> | 20 Mar 2025 | 12527 | 3179 | 398 | n/a | 20 Mar 2028 |

---

**Notes:**

1. Shares awarded represent potential maximum opportunity.

2. The market price at award is the price used to determine the number of ordinary shares subject to the awards, which is calculated in the ordinary course as the average of the closing mid-market price of an

ordinary share over the three dealing days preceding the date of grant. An award price of 3,179 pence per share was used for the PSP award granted to the Executive Directors, consistent with the award price

used for the PSP award granted to the wider population on 20 March 2025.

3. The performance period for the PSP award is from 1 January 2025 - 31 December 2027. The proportion of the award that will vest for achieving threshold performance is 15% of maximum opportunity and 100%

of award will vest at maximum.

4. DSBS awards relate to the 2024 performance as disclosed in the Annual Report and Form 20-F for the year ended 31 December 2024.

5. Soraya Benchikh stepped down from the Board on 26 August 2025. In line with the Remuneration Committee's decision, Soraya will retain a pro-rated portion of the PSP award granted in 2025. Following

pro-ration, the maximum number of shares that may vest, subject to the achievement of applicable performance conditions, is 12,582. Her outstanding DSBS award granted in 2025 over 12,527 shares (in respect

of performance in 2024) will be released in line with the original schedule in March 2028, subject to malus and clawback provisions.

---

| | | | |
|:---|:---|:---|:---|
| **Further details in relation to performance conditions attaching to outstanding scheme interests**  | **Further details in relation to performance conditions attaching to outstanding scheme interests**  | **Further details in relation to performance conditions attaching to outstanding scheme interests**  | **Further details in relation to performance conditions attaching to outstanding scheme interests**  |
|  | **PSP awards granted in 2025** | **PSP awards granted in 2025** | **PSP awards granted in 2025** |
|  | **1 January 2025–31 December 2027** | **1 January 2025–31 December 2027** | **1 January 2025–31 December 2027** |
|  | **Weighting** | **Threshold** <br>**(15% vests)**<br>| **Maximum** <br>**(100% vests)**<br>|
| Relative TSR<sup>1</sup><br>Ranking against a peer group of international FMCG companies<br>| 20% | Median | Upper <br>quartile<br>|
| EPS growth at constant rates of exchange<sup>2</sup><br>Compound annual growth (CAGR) in adjusted diluted EPS measured at constant rates of exchange<br>| 25% | 3% CAGR | 7% CAGR |
| Operating cash flow conversion ratio<br>Measured at current rates of exchange, as a percentage of APFO<sup>2</sup><br>| 20% | 94% | 99% |
| Smokeless revenue / Total revenue<br>Smokeless revenue over total revenue measured at current rates of exchange<br>| 10% | 21% | 24% |
| New Categories contribution margin<br>New Category contribution over New Category revenue measured at constant rates of exchange<br>| 10% | 20% | 25% |
| Return on capital employed<sup>2</sup><br>Annual average growth on adjusted basis measured at current rates of exchange<br>| 15% | 0.6% | 0.8% |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | | |
|:---|:---|:---|:---|
| **Further details in relation to performance conditions attaching to outstanding scheme interests**  | **Further details in relation to performance conditions attaching to outstanding scheme interests**  | **Further details in relation to performance conditions attaching to outstanding scheme interests**  | **Further details in relation to performance conditions attaching to outstanding scheme interests**  |
|  | PSP awards granted in 2024 | PSP awards granted in 2024 | PSP awards granted in 2024 |
|  | 1 January 2024–31 December 2026 | 1 January 2024–31 December 2026 | 1 January 2024–31 December 2026 |
|  | Weighting | Threshold <br>(15% vests) <br>| Maximum <br>(100% vests)<br>|
| Relative TSR<sup>1</sup><br>Ranking against a peer group of international FMCG companies<br>| 20% | Median | Upper <br>quartile<br>|
| EPS growth at current rates of exchange<sup>2</sup><br>Compound annual growth (CAGR) in adjusted diluted EPS measured at current rates of exchange<br>| 15% | 2% CAGR | 6% CAGR |
| EPS growth at constant rates of exchange<sup>2</sup><br>Compound annual growth (CAGR) in adjusted diluted EPS measured at constant rates of exchange<br>| 15% | 2% CAGR | 6% CAGR |
| Revenue growth<br>Compound annual growth (CAGR) measured at constant rates of exchange<br>| 15% | 3% CAGR | 5% CAGR |
| New Categories revenue growth<br>Compound annual growth (CAGR) measured at constant rates of exchange<br>| 15% | 15% CAGR | 25% CAGR |
| Operating cash flow conversion ratio<br>Measured at current rates of exchange, as a percentage of APFO<sup>2</sup><br>| 20% | 87.5% | 97.5% |

---

**Notes:**

1. The relative TSR peer group constituents for the LTIP awards granted in 2024 and 2025 are: Altria Group, Anheuser-Busch InBev, Carlsberg, Coca-Cola, Diageo, Heineken, Imperial Brands, Japan Tobacco,

PepsiCo, Pernod Ricard, Philip Morris International, Procter & Gamble, Reckitt Benckiser, and Unilever.

2. As adjusted for Canada.The adjustment in respect of Canada is discussed on page [70](#i7f61e46191684bd8bf47ec92404e732a_387234), with the adjustment based upon the profit after interest and tax from all sources, excluding New Categories, in Canada.

**Executive Directors' shareholding requirements** 

Executive Directors are encouraged to build up a high level of personal shareholding to ensure a continuing alignment of interests with shareholders.

Executive Directors are required to hold BAT shares equal to the value of 600% of salary for the Chief Executive and 450% for the Chief Financial Officer

during their service, and post-employment are required to maintain the same level of shareholding (or, if lower, their shareholding on their cessation date)

until the second anniversary of cessation of employment, with a sale restriction mechanism in place for this period.

If, at any time, an Executive Director does not meet the requirements of the shareholding guidelines, the individual may, generally, only sell a maximum of

up to 50% of any ordinary shares vesting (after tax) under the Company share plans until the threshold required under the shareholding guidelines has been

met. Waiver of compliance with guidelines is permitted with the approval of the Remuneration Committee in circumstances where a restriction on a

requested share sale could cause undue hardship. No such applications were received from the Executive Directors during 2025.

Non-Executive Directors are expected to purchase shares in the Company on the open market to build up a shareholding in the Company during the term of their

appointment.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Executive Directors' shareholding as at the year ended 31 December 2025 audited** | **Executive Directors' shareholding as at the year ended 31 December 2025 audited** | **Executive Directors' shareholding as at the year ended 31 December 2025 audited** | **Executive Directors' shareholding as at the year ended 31 December 2025 audited** | **Executive Directors' shareholding as at the year ended 31 December 2025 audited** | **Executive Directors' shareholding as at the year ended 31 December 2025 audited** |
|  | No. of eligible ordinary <br>shares held at <br>31 Dec 2025<sup>1</sup><br>| Value of eligible ordinary <br>shares held at 31 Dec 2025<sup>2</sup><br>£'000<br>| Actual percentage (%) of <br>base salary at <br>31 Dec 2025<br>| Shareholding requirements<br>(% of base salary 31 Dec 2025)<br>| Compliance with <br>shareholding <br>requirement<br>|
| Tadeu Marroco | 292071 | 12308 | 867% | 600% | Yes |
| **Former Executive Director**<br>Soraya Benchikh<sup>3</sup><br>| 80667 | 3399 | 251% | 450% | No |

---

**Notes:**

1. Eligibility of shares: (a) ordinary shares owned outright; (b) unvested ordinary shares under the DSBS, which represent deferral of earned bonus, are eligible and count towards the requirement on a net-of-tax basis;

(c) unvested ordinary shares under the LTI plan are not eligible and do not count towards the requirement during the performance period, but the estimated notional net number of ordinary shares held during the LTI plan

Extended Vesting Period and the PSP additional two-year holding period are eligible and will count towards the requirement; (d) unvested ordinary shares granted as a buy-out award on recruitment are eligible to count

towards the requirement on a net-of-tax basis; and (e) ordinary shares held in trust under the all-employee share plan are not eligible and do not count towards the shareholding requirement.

2. Value of ordinary shares shown above: this is based on the closing mid-market share price on 31 December 2025 of 4,214p.

3. Soraya Benchikh remains subject to a two-year post-employment shareholding requirement of the lower of 450% of salary and her in-role shareholding, which applies only in respect of shares acquired since becoming an

Executive Director. Ms Benchikh's shareholding at the time of stepping down from the Board (26 August 2025) was 411% of salary; disposals made by Ms Benchikh between stepping down and 31 December 2025 relate

solely to shares that were not subject to the Company's post-employment shareholding requirement.

**Remuneration in the context of the wider workforce**

The Group's remuneration policies and practices are founded on a high degree of alignment and consistency across the organisation. Accordingly,

remuneration for senior management is determined considering the remuneration principles that apply to the Executive Directors, and similar principles also

form the basis of the remuneration arrangements for the wider workforce.

The reward strategy for all employees is built around and designed to deliver the following objectives:

–Attract, retain and engage a diverse talent pool for competitive advantage;

–Offer a reward that is externally competitive and internally equitable as well as being commercially sustainable; and

–Align with short-term and long-term shareholder interests

The key difference between Executive Directors' remuneration and the wider employee population is the increased emphasis on long-term performance in

respect of Executive Directors, with a greater percentage of their total remuneration being performance-related and delivered in BAT shares. This includes an

additional two-year holding period on the PSP, and post-employment shareholding requirements which do not apply to other employees.

The following table summarises the remuneration structure for the wider workforce.

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | |
|:---|:---|
| **Element** | Wider workforce remuneration |
| **Salary** | –Salary ranges across all grades are set by reference to external market data. Individual positioning within the set salary ranges will <br>depend on level of experience, responsibility and individual performance.<br>–A globally consistent pay comparator group, derived from the International Pay Comparator Group used by the Remuneration <br>Committee for executive pay benchmarking, is utilised across all levels of the organisation for pay benchmarking purposes, with an <br>appropriate level of flexibility provided to end markets.<br>|
| **Pension &** <br>**Benefits**<br>| –Retirement benefits and other benefit arrangements are provided to employees based on and to reflect local market practice.<br>–Company pension contribution rates for Executive Directors and the wider UK workforce are aligned.<br>|
| **Short-Term** <br>**Incentive**<br>| –Our International Executive Incentive Scheme (IEIS) is operated consistently across the organisation and has more than 1,690 <br>employees participating. It is designed to reward employees for the delivery of financial, strategic and operational targets.<br>–The IEIS is globally aligned for all managers in senior management roles, including Executive Directors, and for the most senior <br>managers, a portion of any award receivable is deferred in BAT shares for three years, granted under the DSBS, and the remaining <br>portion is delivered in cash. Both cash and deferred share awards are subject to malus and clawback. Approximately 460 employees <br>globally participate in the DSBS.<br>–Corporate annual bonus plans are in operation for employees in corporate functions designed to mirror the basic construct of the <br>IEIS and with performance metrics which align with the IEIS. Approximately 17,280 employees globally participate in the <br>corporate annual bonus plans.<br>–Functional incentive schemes are in operation in non-corporate functions with functional performance metrics incorporated to <br>provide line of sight for participants.<br>|
| **Long-Term** <br>**Incentives**<br>| –The Group operates two globally aligned discretionary LTI plans designed to reward and retain our senior talent while incentivising <br>long-term business results and shareholder value creation, aligning interests of our senior leaders with those of shareholders.<br>–Performance Share Plan (PSP) awards are granted to the Group's most senior leaders (circa 160), including the Management Board, <br>which are subject to the same performance measures and three-year performance period as for the Executive Directors. Executive <br>Directors' awards are also subject to the additional two-year holding period.<br>–Restricted Share Plan (RSP) awards are granted to circa 1,960 senior leaders globally and are subject to continuous employment <br>conditions during the three-year vesting period. The Executive Directors do not participate in the RSP. <br>–Discretionary share awards are subject to malus and clawback for all participants. <br>|
| **All-employee** <br>**share schemes**<br>| –Our all-employee share schemes are key to fostering a culture of ownership amongst our employees. In the UK, all employees (circa <br>2,470) are eligible to participate in the Company's all-employee share schemes, the Partnership Share Scheme and the Share Reward <br>Scheme under our UK Share Incentive Plan and the Sharesave Scheme. Similar plans are also offered in Germany and Belgium.<br>|

---

**Pension, retirement and similar benefits**

For further information on pension, retirement and similar benefits, please refer to notes 15 and 30 in Part III - Item 18 Notes on the Accounts.

**Remuneration policy implementation for 2026**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Base Salary for 2026** |  |  |  |  |
| The Remuneration Committee has determined the Chief Executive's salary following a comprehensive review. In reaching its decision, the Committee <br>considered several factors, including: the average salary increase for the wider UK workforce, the Chief Executive's individual contribution and the Group's <br>underlying performance in 2025. The salary increase also aligns with the Directors' Remuneration Policy commitment that annual salary increases for the <br>Chief Executive will remain at or below the UK employee average for the duration of the new Policy. |  |  |  |  |
| The Remuneration Committee has determined the Chief Executive's salary following a comprehensive review. In reaching its decision, the Committee <br>considered several factors, including: the average salary increase for the wider UK workforce, the Chief Executive's individual contribution and the Group's <br>underlying performance in 2025. The salary increase also aligns with the Directors' Remuneration Policy commitment that annual salary increases for the <br>Chief Executive will remain at or below the UK employee average for the duration of the new Policy. | **Chief Executive** | **Current Base salary** | **Base salary from 1 Apr 2026** | **Percentage change %** |
| The Remuneration Committee has determined the Chief Executive's salary following a comprehensive review. In reaching its decision, the Committee <br>considered several factors, including: the average salary increase for the wider UK workforce, the Chief Executive's individual contribution and the Group's <br>underlying performance in 2025. The salary increase also aligns with the Directors' Remuneration Policy commitment that annual salary increases for the <br>Chief Executive will remain at or below the UK employee average for the duration of the new Policy. | Tadeu Marroco | £1,419,000 | £1,468,000 | 3.5% |

---

---

| |
|:---|
| **Pensions and Benefits** |
| No changes have been made to the pension and benefits provision for Executive Directors, noting that the pension provision for Executive Directors has <br>been aligned with the wider UK workforce since 2019.<br>|

---

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | |
|:---|:---|:---|
| **Short-Term Incentive for 2026** |  |  |
| STI opportunity levels for Executive Directors will be in line with those set out in our Directors' Remuneration Policy. Due to the commercial sensitivity of <br>the targets, details for the year ending 31 December 2026 will be disclosed retrospectively under Item 6.B - Compensation in the Annual Report on Form <br>20-F for the year ending 31 December 2026 (the Form 20-F 2026). <br>For 2026, the Committee has agreed to refocus the New Categories gross profit STI measure from margin accretion to absolute profit growth. Investments <br>in product innovations and the continued premiumisation of our New Categories portfolio are a strategic area of focus for the Group, hence re-focusing this <br>metric to New Categories gross profit performance provides a more appropriate measure of in-year performance at this stage in the Group's transformation. <br>New Categories margin accretion remains an important area of focus and is represented in the LTI through the New Categories Contribution Margin metric. <br>The following performance measures and weightings will apply to the STI in 2026:  | STI opportunity levels for Executive Directors will be in line with those set out in our Directors' Remuneration Policy. Due to the commercial sensitivity of <br>the targets, details for the year ending 31 December 2026 will be disclosed retrospectively under Item 6.B - Compensation in the Annual Report on Form <br>20-F for the year ending 31 December 2026 (the Form 20-F 2026). <br>For 2026, the Committee has agreed to refocus the New Categories gross profit STI measure from margin accretion to absolute profit growth. Investments <br>in product innovations and the continued premiumisation of our New Categories portfolio are a strategic area of focus for the Group, hence re-focusing this <br>metric to New Categories gross profit performance provides a more appropriate measure of in-year performance at this stage in the Group's transformation. <br>New Categories margin accretion remains an important area of focus and is represented in the LTI through the New Categories Contribution Margin metric. <br>The following performance measures and weightings will apply to the STI in 2026:  | STI opportunity levels for Executive Directors will be in line with those set out in our Directors' Remuneration Policy. Due to the commercial sensitivity of <br>the targets, details for the year ending 31 December 2026 will be disclosed retrospectively under Item 6.B - Compensation in the Annual Report on Form <br>20-F for the year ending 31 December 2026 (the Form 20-F 2026). <br>For 2026, the Committee has agreed to refocus the New Categories gross profit STI measure from margin accretion to absolute profit growth. Investments <br>in product innovations and the continued premiumisation of our New Categories portfolio are a strategic area of focus for the Group, hence re-focusing this <br>metric to New Categories gross profit performance provides a more appropriate measure of in-year performance at this stage in the Group's transformation. <br>New Categories margin accretion remains an important area of focus and is represented in the LTI through the New Categories Contribution Margin metric. <br>The following performance measures and weightings will apply to the STI in 2026:  |
| **2026 STI performance measures and weightings** | **2026 STI performance measures and weightings** | **2026 STI performance measures and weightings** |
| Total revenue growth | 10% | Measures year-on-year % growth in total revenue at constant rates of exchange.  |
| Adjusted profit from operations<sup>1</sup> | 30% | Measures year-on-year % growth at constant rates of exchange on an adjusted for <br>Canada basis. <br>|
| Adjusted cash generated <br>from operations<sup>2</sup> | 25% | Measures annual adjusted cash generated from operations at constant rates. |
| Transformation metrics |  |  |
| New Categories revenue growth | 12.5% | Measures year-on-year % improvement in revenue from Vapour, HP and Modern <br>Oral at constant rates.<br>|
| New Categories gross profit growth  | 12.5% | Measures gross profit growth delivered by Vapour, HP and Modern Oral products <br>at constant rates of exchange.<br>|
| Sustainability – Climate | 10% | Measures annual % reduction (versus 2020 baseline) in Scope 1 and 2 GHG <br>emissions from direct operations including direct emissions from BAT owned <br>facilities and indirect emissions associated with purchased energy. <br>|
| **Total** | **100%** |  |

---

**Notes:** 

1. Consistent with management's assessment of the Group's performance as it relates to Canada, from 2026 the charge will (following the underlying terms of the Approved Plans) be 85% of the profit after interest

and tax from all sources in Canada, excluding New Categories, reducing in future periods in line with the Approved Plans. The calculation of the Adjusted Profit from Operations metric for remuneration

purposes will be adjusted accordingly. Due to the initial uncertainty surrounding the timing of the implementation of the Approved Plans, the 2025 Adjusted Profit from Operations outcome figure excluded

100% of the Canadian business (excluding New Categories). The Committee reserves the right to review this approach in light of a change in circumstances or other relevant factors in the future. Any adjustments

will be fully explained in the Form 20-F 2026

2. Net cash generated from operating activities, less net finance costs, net capital expenditure, dividends from associates and dividends paid to non-controlling interests and before cash paid/received in respect of

litigation. Adjusted CGFO is measured at constant rates of exchange.

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | | |
|:---|:---|:---|:---|
| **Performance Share Plan (PSP) awards for 2026** | **Performance Share Plan (PSP) awards for 2026** |  |  |
| LTI opportunity levels for Executive Directors will be in line with those set out in our Directors' Remuneration Policy.<br>The PSP performance measures strengthen the focus on portfolio transformation, together with the incentivisation of the continued financial performance of <br>the Group, creating a strong alignment with the Group's long-term strategy delivery and the interests of shareholders. The measures and targets for the 2026 <br>PSP awards are set out below.<br>The targets have been set having carefully considered our internal forecasts and external market expectations for future growth, as well as the current business <br>environment in which the Group is operating. The Committee is confident that the targets remain suitably stretching and incentivising for participants, ensuring <br>only maximum payout for exceptional performance. In addition, the Committee retains discretion to determine whether the formulaic outcome of the 2026 PSP <br>at vesting is a fair reflection of underlying business performance and consistent with the shareholder experience over the performance period and, if not, to <br>adjust the outcome accordingly. | LTI opportunity levels for Executive Directors will be in line with those set out in our Directors' Remuneration Policy.<br>The PSP performance measures strengthen the focus on portfolio transformation, together with the incentivisation of the continued financial performance of <br>the Group, creating a strong alignment with the Group's long-term strategy delivery and the interests of shareholders. The measures and targets for the 2026 <br>PSP awards are set out below.<br>The targets have been set having carefully considered our internal forecasts and external market expectations for future growth, as well as the current business <br>environment in which the Group is operating. The Committee is confident that the targets remain suitably stretching and incentivising for participants, ensuring <br>only maximum payout for exceptional performance. In addition, the Committee retains discretion to determine whether the formulaic outcome of the 2026 PSP <br>at vesting is a fair reflection of underlying business performance and consistent with the shareholder experience over the performance period and, if not, to <br>adjust the outcome accordingly. | LTI opportunity levels for Executive Directors will be in line with those set out in our Directors' Remuneration Policy.<br>The PSP performance measures strengthen the focus on portfolio transformation, together with the incentivisation of the continued financial performance of <br>the Group, creating a strong alignment with the Group's long-term strategy delivery and the interests of shareholders. The measures and targets for the 2026 <br>PSP awards are set out below.<br>The targets have been set having carefully considered our internal forecasts and external market expectations for future growth, as well as the current business <br>environment in which the Group is operating. The Committee is confident that the targets remain suitably stretching and incentivising for participants, ensuring <br>only maximum payout for exceptional performance. In addition, the Committee retains discretion to determine whether the formulaic outcome of the 2026 PSP <br>at vesting is a fair reflection of underlying business performance and consistent with the shareholder experience over the performance period and, if not, to <br>adjust the outcome accordingly. | LTI opportunity levels for Executive Directors will be in line with those set out in our Directors' Remuneration Policy.<br>The PSP performance measures strengthen the focus on portfolio transformation, together with the incentivisation of the continued financial performance of <br>the Group, creating a strong alignment with the Group's long-term strategy delivery and the interests of shareholders. The measures and targets for the 2026 <br>PSP awards are set out below.<br>The targets have been set having carefully considered our internal forecasts and external market expectations for future growth, as well as the current business <br>environment in which the Group is operating. The Committee is confident that the targets remain suitably stretching and incentivising for participants, ensuring <br>only maximum payout for exceptional performance. In addition, the Committee retains discretion to determine whether the formulaic outcome of the 2026 PSP <br>at vesting is a fair reflection of underlying business performance and consistent with the shareholder experience over the performance period and, if not, to <br>adjust the outcome accordingly. |
| **PSP measures**  | **Weighting** | **Threshold (15%)** | **Maximum (100%)** |
| **Relative TSR**<sup>1</sup><br>BAT's total shareholder return over the performance period relative to <br>the total shareholder return of the TSR peer group. <br>| 20% | Median | Upper Quartile |
| **Earnings per Share**<sup>2</sup> **(at constant rates) CAGR** <br>Measures adjusted, diluted EPS compound annual growth rate <br>(CAGR) over a three-year performance period at constant rates of <br>exchange. <br>| 25% | 3.5% | 7.5% |
| **Operating Cash Flow Conversion Ratio**<br>Measures average operating cash flow as a % of Adjusted Profit from <br>Operations over the performance period at current rates of exchange. <br>| 20% | 94% | 99% |
| Transformation metrics |  |  |  |
| **Smokeless Revenue / Total Revenue**<br>Measures revenue delivered from New Categories, Traditional Oral <br>and Beyond Nicotine products over total revenue at current rates of <br>exchange. <br>| 10% | 21.5% | 25.0% |
| **New Categories Contribution Margin**<br>Measures New Categories Contribution over New Categories <br>revenue, where New Categories Contribution is the contribution to <br>APFO from Vapour, HP and Modern Oral products. It is stated after <br>deduction of attributable costs and allocated cross category shared <br>costs, before the deduction of administrative overheads and excluding <br>the impact of adjusting items in line with the policy for APFO. The <br>measure is assessed at constant rates of exchange.<br>| 10% | 20.0% | 25.0% |
| **Return on Capital Employed**<sup>2,3</sup><br>Measures annual average ROCE growth on an adjusted basis at <br>current rates over a three-year performance period: profit from <br>operations, excluding adjusting items and including dividends <br>received from associates and joint ventures as a proportion of average <br>total assets less current liabilities. Measurement is based on an <br>average growth rate over the three-year performance period to <br>moderate potential foreign exchange rate fluctuations which may <br>impact the ROCE in a specific year. <br>| 15% | 0.6% | 0.8% |
| **Total** | **100%** |  |  |

---

**Notes:** 

1. The 2026 TSR peer group constituents are: Altria Group, Anheuser-Busch InBev, Carlsberg, Coca-Cola, Diageo, Heineken, Imperial Brands, Japan Tobacco, PepsiCo, Pernod Ricard, Philip Morris International,

Procter & Gamble, Reckitt Benckiser, and Unilever.

2. Consistent with management's assessment of the Group's performance as it relates to Canada, from 2026 the charge will (following the underlying terms of the Approved Plans) be 85% of the profit after interest

and tax from all sources in Canada, excluding New Categories, reducing in future periods in line with the Approved Plans. The calculation of Earnings per share and ROCE metrics for remuneration purposes will

be adjusted accordingly. Due to the initial uncertainty surrounding the timing of the implementation of the Approved Plans, the 2025 Earnings per share outcome figure excluded 100% of the Canadian business

(excluding New Categories). The Committee reserves the right to review this approach in light of a change in circumstances or other relevant factors in the future. Any adjustments will be fully explained under

item 6. B - Compensation in future Annual Reports on Form 20-F.

3. The approach taken is consistent with the Group's financial reporting standards. Material events (e.g. material impairments and/or acquisitions) will be reported to and considered by the Committee as part of the

assessment of the Group's underlying performance. The Committee reserves the right to review this approach in light of a change in circumstances or other relevant factors in the future. Any adjustments will be

fully explained under Item 6.B - Compensation in future Annual Reports on Form 20-F.

**Chair and Non-Executive Directors' Remuneration for the Year Ended 31 December 2025**

The following table shows the single figure of remuneration for the Chair and Non-Executive Directors in respect of qualifying services for the year ended 31

December 2025, together with comparative figures for 2024.

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Base fee<br>£'000 | Base fee<br>£'000 | Chair/Committee <br>membership fees<sup>1</sup><br>£'000 | Chair/Committee <br>membership fees<sup>1</sup><br>£'000 | Taxable benefits<sup>2</sup><br>£'000 | Taxable benefits<sup>2</sup><br>£'000 | Total remuneration <br>£'000 | Total remuneration <br>£'000 |
| | **2025**<sup>3</sup> | 2024 | **2025**<sup>3</sup> | 2024 | **2025**<sup>3</sup> | 2024 | **2025**<sup>3</sup> | 2024 |
| Luc Jobin (Chair)<sup>4</sup> | **736** | 711 | **—** |  | **19** | 17 | **755** | 728 |
| Kandy Anand | **105** | 104 | **58** | 48 | **8** | 4 | **171** | 156 |
| Karen Guerra | **105** | 104 | **33** | 29 | **3** | 3 | **141** | 136 |
| Holly Keller Koeppel<sup>5,6</sup> | **148** | 133 | **33** | 38 | **206** | 3 | **387** | 174 |
| Uta Kemmerich-Keil (17/02/2025) | **92** |  | **29** |  | **9** |  | **130** |  |
| Véronique Laury | **105** | 104 | **33** | 29 | **2** | 3 | **140** | 136 |
| Darrell Thomas<sup>6</sup> | **105** | 104 | **58** | 48 | **161** | 4 | **324** | 156 |
| Serpil Timuray  | **105** | 104 | **33** | 29 | **4** | 4 | **142** | 137 |
| Matthew Wright (01/ 11/ 2025) | **17** | **—** | **6** | **—** | **1** | **—** | **24** | **—** |
| **Former Non-Executive Directors** |  |  |  |  |  |  |  |  |
| Murray Kessler (stepped down 17/02/2025)<sup>6</sup> | **14** | 104 | **4** | 29 | **—** | 55 | **18** | 188 |
| **Total** | **1532** | 1468 | **287** | 250 | **413** | 93 | **2232** | 1811 |

---

**Notes:**

1. Committee memberships are shown, together with changes during the year, in the reports of the respective committees in the Governance sections of the Directors' Report.

2. Benefits for the Chair in 2025 comprised health insurance and 'walk-in' medical services of £10,566 (2024: £10,113), hotel accommodation and travel expenses of £5,920 (2024: £4,320), and security service

cost of £2,208 (2024: £2,394). The benefits for the other Non-Executive Directors principally comprised travel-related expenses incurred in connection with individual and/or accompanied attendance at certain

business functions and/or events and 'walk-in' medical services. The figures shown are grossed-up for tax (as appropriate) as, in line with the UK market, it is the normal practice for the Company to pay the tax

that may be due on any benefits.

3. The 2025 fees and benefits reflect the following appointment dates: Uta Kemmerich-Keil's appointment as a Non-Executive Director on 17 February 2025 and Matthew Wright's appointment as a Non-Executive

Director on 1 November 2025, and Holly Keller Koeppel stepping down from the Audit Committee with effect from 31 December 2025.

4. Luc Jobin receives a pension in respect of prior service to Imasco Limited (acquired in 2000 by the Group) and Imperial Tobacco Canada Limited, a subsidiary of BAT. In 2025, this amount was CAD$150,228

(£81,030), and CAD$150,228 (£83,824) in 2024.

5. Deferred Compensation Plan for Directors of Reynolds American Inc. (DCP): as a former outside director of Reynolds American Inc. Holly Keller Koeppel participated in the DCP under which she elected to

defer payment of a portion of her Reynolds American retainers and meeting attendance fees to a Reynolds American stock account. Following the acquisition of Reynolds American by BAT, amounts deferred to

a stock account (Deferred Stock Units or DSUs) mirror the performance of, and receive dividend equivalents based on, BAT American Depository Shares (ADSs). The DSUs of Holly Keller Koeppel are

disclosed as a note to 'Summary of Directors' share interests'. DSUs deferred under the DCP will be paid in accordance with the terms of the DCP, section 409A of the U.S. Internal Revenue Code of 1986, as

amended, and the Director's existing deferral elections.

6. Taxable benefits for Holly Keller Koeppel and Darrell Thomas in 2025 as well as taxable benefits for Murray Kessler in 2024 included expenses relating to attendance at company-sponsored events which are

treated by HMRC as taxable benefit in the United Kingdom. The amounts include tax gross-up, where relevant.

**2026 Non-Executive Directors' fees**

The 2026 Non-Executive Directors' fees structure is set out in the table below. The Chair's fee and the fees for Non-Executive Directors have been reviewed

with the changes below to apply in May 2026. Adjustments to fees have taken into consideration the increasing demands placed on the Board, the strategic

agenda of the business, the complexity of the sector and the approach to salary adjustments among the wider UK workforce. The Chair's fee will be adjusted

by 3.5% and the fees of Non-Executive Directors, when viewed in aggregate, will be adjusted by 3.5%.

---

| | | |
|:---|:---|:---|
|  | Fees from 1 May 2026<br>£<br>| Fees to 30 April 2026<br>£<br>|
| Chair's fee | **771000** | 745000 |
| Base fee | **108500** | 104800 |
| Senior Independent Director | **43150** | 43150 |
| Audit Committee: Chair | **43150** | 43150 |
| Audit Committee: Member | **20700** | 20000 |
| Nominations Committee: Chair | **—** |  |
| Nominations Committee: Member | **15525** | 15000 |
| Remuneration Committee: Chair | **43150** | 43150 |
| Remuneration Committee: Member | **20700** | 20000 |

---

**Non-GAAP measures used with the Group's remuneration schemes**

For certain measures within the Group's remuneration schemes, management is assessed on the performance of Canada on an ongoing basis. As the Chief

Operating Decision Maker, the Management Board (from 1 January 2025) assesses the performance of the Group by reviewing adjusted profit from operations as

adjusted for Canada using the prior year translational exchange rate (constant rate) to evaluate segment performance and allocate resources to the overall business

on a regional basis.

This recognises a charge calculated in line with the Approved Plans (as described in note 24 in Part III - Item 18 Notes on the Accounts) – based on a percentage of

Imperial Tobacco Canada Limited's and Imperial Tobacco Company Limited's (together ITCAN) adjusted profit from operations from all sources in Canada,

excluding New Categories. This charge (decreasing over time) will continue until the aggregate settlement amount is paid. This is reflected in the adjusted

performance of the Group within the Group's remunerations schemes and is referred to as 'as adjusted for Canada'. This approach presents the economic delivery

from the AME region in a manner comparable to that of the other regions in the Group. Due to the initial uncertainty of timing of the implementation of the

Approved Plans, 100% of the Canadian business (excluding New Categories) was excluded from both 2024 and 2025.

Full reconciliations from the relevant IFRS measure have been provided below.

**Adjusted Profit From Operations (APFO) as Adjusted for Canada and Adjusted Operating Margin as Adjusted for Canada**

**Definition – Profit from operations before the impact of adjusting items (including, as applicable, adjustments in respect of Canada) and translational** 

**foreign exchange; and adjusted profit from operations (including, as applicable, adjustments in respect of Canada), as a percentage of revenue.**

British American Tobacco p.l.c. Form 20-F 2025<br>

As management is assessed onAPFO at constant rates also as adjusted for Canada within the Group's incentive schemes, as reported under this Item 6.B -

Compensation, this measure is also presented adjusting for the performance of Canada (excluding New Categories). The table below reconciles the Group's APFO

at constant rates to APFO as adjusted for Canada atconstant rates based on a re-translation of adjusted profit from operations for each year, at the previous year's

exchange rates, and provides adjusted operating margin as adjusted for Canada for the periods presented. Refer to note 2 in Part III - Item 18 Notes on the

Accounts for further discussion of the segmental results and for the reconciliation of adjusted profit from operations at current and constant rates of exchange to

segmental profit from operations and to Group profit for the years ended 31 December 2025, 2024 and 2023.

APFO as adjusted for Canada and adjusted operating margin as adjusted for Canada have limitations as analytical tools. They are not presentations made in

accordance with IFRS, are not measures of financial condition or liquidity and should not be considered as alternatives to profit for the year, profit from operations

or operating margin as determined in accordance with IFRS. These measures are not necessarily comparable to similarly titled measures used by other

companies.

APFO as adjusted for Canada and adjusted operating margin as adjusted for Canada are not measures defined by IFRS. The most directly comparable IFRS measure to

APFO as adjusted for Canada is profit from operations. The most directly comparable IFRS measure to adjusted operating margin as adjusted for Canada is

operating margin which is profit from operations as a proportion of revenue. The definition of adjusting items is explained in note 1in Part III - Item 18 Notes on

the Accounts.

---

| | | |
|:---|:---|:---|
| For the year ended 31 December  | **2025** | 2024 |
|  | **£m** | £m |
| **Adjusted profit from operations re-translated at 2024 rates as per page [44](#ief2b97e0234e4b59a164ebaaec0811fe_2-0-1-1-1530776)** | **11936** | 11890 |
| Adjustments in respect of Canada<sup>1</sup>, translated at 2024 rates | **(308)** | (520) |
| **Adjusted profit from operations as adjusted for Canada, translated at 2024 exchange rates** | **11628** | 11370 |
| Change in adjusted profit from operations as adjusted for Canada, translated at 2024 exchange rates | **2.3%** |  |

---

1. The adjustment in respect of Canada is discussed on page [70](#i7f61e46191684bd8bf47ec92404e732a_374233), with the adjustment based upon the profit after interest and tax from all sources, excluding New Categories, in Canada.

**Adjusted Gross Profit and Adjusted Gross Margin both as adjusted for Canada**<sup>1</sup>**and at Constant Rates of Exchange**

**Definition – Profit from operations before the impact of adjusting items and translational foreign exchange, and before all non production/**

**attributable distribution costs and presented adjusting for the performance of Canada (excluding New Categories), in £ and as a proportion of** 

**revenue (at constant rates).**

New Category adjusted gross margin (being a sub-set of Group adjusted gross margin as adjusted for Canada) is included within the Group's incentive

schemes, as reported under this Item 6.B - Compensation.

Costs are incurred by the products either directly as incurred by the product or category or, when incurred by products via an allocation of shared distribution

mechanism in a market, such costs are allocated based upon each category's revenue as a proportion of total revenue from that market.

The definition of adjusting items is explained in note 1in Part III - Item 18 Notes on the Accounts.

Adjusted gross profit and adjusted gross margin (both as adjusted for Canada) have limitations as analytical tools. They are not presentations made in

accordance withIFRS, are not measures of financial condition or liquidity and should not be considered as alternatives to profit from operations

asdetermined in accordance with IFRS. The most directly comparable IFRS measure to adjusted gross profit as adjusted for Canada is profit from operations.

The most comparable IFRS measure to adjusted gross margin as adjusted for Canada is profit from operations as a proportion of revenue. Adjusted gross

profit and adjusted gross margin (both adjusted for Canada) are not necessarily comparable to similarly titled measures used by other companies.

1. The adjustment in respect of Canada is discussed on page [70](#i7f61e46191684bd8bf47ec92404e732a_374233), with the adjustment based upon the profit after interest and tax from all sources, excluding New Categories, in Canada.

**Category Contribution and Category Contribution Margin both as adjusted for Canada**<sup>1</sup> **and at Constant Rates of Exchange**

**Definition – Profit from operations before the impact of adjusting items and translational foreign exchange, having allocated costs that are** 

**attributable to a product category and presented adjusting for the performance of Canada (excluding New Categories), in £ and as a proportion** 

**of revenue (at constant rates).**

New Category contribution and New Category contribution margin (being a sub-set of Group category contribution and Group category contribution margin)

are included within the Group's incentive schemes, as reported under this Item 6.B - Compensation.

These measures reflect the marginal contribution of the Group's principal product categories to the Group's financial performance. These measures include

all attributable revenue and costs. These measures are provided in aggregate as certain costs are incurred across all New Categories and are not product

specific. However, certain overhead costs that are not category specific are excluded from category contribution. Where costs are incurred by products via a

shared distribution mechanism in a market, such costs are allocated based upon each category's revenue as a proportion of total revenue from that market.

The definition of adjusting items is explained in note 1in Part III - Item 18 Notes on the Accounts.

Category contribution and category contribution margin (both adjusted for Canada) by products as measures of the Group's performance have limitations as

analytical tools. They are not presentations made in accordance withIFRS, are not measures of financial condition or liquidity and should not be considered

as alternatives to profit from operations asdetermined in accordance with IFRS. The most directly comparable IFRS measure to category contribution as

adjusted for Canada is profit from operations. The most comparable IFRS measures to category contribution margin as adjusted for Canada is profit from

operations as a proportion of revenue. Category contribution and category contribution margin (both adjusted for Canada) are not necessarily comparable to

similarly titled measures used by other companies.

1. The adjustment in respect of Canada is discussed on page [70](#i7f61e46191684bd8bf47ec92404e732a_374233), with the adjustment based upon the profit after interest and tax from all sources, excluding New Categories, in Canada.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Reconciliations of Profit from Operations to Adjusted Profit from Operations, Category Contribution, Category Contribution Margin,** 

**Adjusted Gross Profit and Adjusted Gross Margin, at Constant Rates of Exchange and including adjustments in respect of Canada** 

**(excluding New Categories).** 

The following reconciliations are provided to support the definitions of the above measures as explained on page [71](#i7f61e46191684bd8bf47ec92404e732a_387273) with respect to Group adjusted profit

from operations, adjusted gross profit and adjusted gross margin, at constant rates of exchange(including adjustments in respect of Canada), being measures

used by management and used within the incentive schemes.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| For the year ended 31 December | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | **Group reported**<br>**£m**<br>| **New Categories** <br>**£m**<br>| **Traditional** <br>**Oral**<br>**£m**<br>| **Combustibles**<br>**£m**<br>| **Other**<br>**£m**<br>|
| **Revenue at 2024 exchange rates (see page [41](#i71dd3cfa32dd46f092cff6b4620b47a0_542504))** | **26414** | **3673** | **1073** | **20887** | **781** |
| **Profit from Operations** | **9997** |  |  |  |  |
| Operating margin | **39.0%** |  |  |  |  |
| Adjusting items (see page [43](#i71dd3cfa32dd46f092cff6b4620b47a0_542505)) | **1575** |  |  |  |  |
| Impact of translational FX | **364** |  |  |  |  |
| Adjustments in respect of Canada<sup>1</sup> | **(308)** |  |  |  |  |
| **Adjusted profit from operations as adjusted for Canada** | **11628** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vs 2024 | 2.3% |  |  |  |  |
| Adjusted operating margin as adjusted for Canada | **44.0%** |  |  |  |  |
| Other costs that are not attributable to categories  | **2053** |  |  |  |  |
| **Category Contribution as adjusted for Canada** | **13681** | **442** | **798** | **12235** | **206** |
| Category Contribution margin as adjusted for Canada | **51.8%** | **12.0%** | **74.3%** | **58.6%** | **26.4%** |
| Category spend (Marketing Investment and R&D) | **3860** | **1703** | **91** | **1992** | **74** |
| **Adjusted Gross profit as adjusted for Canada** | **17541** | **2145** | **889** | **14227** | **280** |
| vs 2024 | 3.4% | 11.0% | -0.9% | 2.5% | 8.9% |
| Adjusted Gross margin as adjusted for Canada | 66.4% | 58.4% | 82.8% | 68.1% | 35.8% |
| Impact of translational FX | **483** | **29** | **26** | **414** | **14** |
| **Adjusted Gross profit at current rates as adjusted for Canada** | **17058** | **2116** | **863** | **13813** | **266** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| For the year ended 31 December | 2024 | 2024 | 2024 | 2024 | 2024 |
|  | Group reported<br>£m<br>| New Categories<br>£m<br>| Traditional Oral<br>£m<br>| Combustibles<br>£m<br>| Other<br>£m<br>|
| **Revenue** | 25867 | 3432 | 1092 | 20685 | 658 |
| **Profit from Operations** | 2736 |  |  |  |  |
| Operating margin | 10.6% |  |  |  |  |
| Adjusting items (see page [43](#i71dd3cfa32dd46f092cff6b4620b47a0_542505)) | 9154 |  |  |  |  |
| Adjustments in respect of Canada<sup>1</sup> | (520) |  |  |  |  |
| **Adjusted profit from operations as adjusted for Canada** | 11370 |  |  |  |  |
| Adjusted operating margin as adjusted for Canada | 44.0% |  |  |  |  |
| Other costs that are not attributable to categories  | 1848 |  |  |  |  |
| **Category Contribution as adjusted for Canada** | 13218 | 249 | 840 | 11931 | 198 |
| Category Contribution margin as adjusted for Canada | 51.1% | 7.3% | 76.9% | 57.7% | 30.1% |
| Category spend (Marketing Investment and R&D) | 3747 | 1683 | 58 | 1947 | 59 |
| **Adjusted Gross profit as adjusted for Canada** | 16965 | 1932 | 898 | 13878 | 257 |
| Adjusted Gross margin as adjusted for Canada | 65.6% | 56.3% | 82.2% | 67.1% | 39.1% |

---

at Constant FX<br>

1. The adjustment in respect of Canada is discussed on page [70](#i7f61e46191684bd8bf47ec92404e732a_374233), with the adjustment based upon the profit after interest and tax from all sources, excluding New Categories, in Canada.

**Adjusted Diluted Earnings Per Share (EPS), presented at both current and constant rates of exchange, as adjusted for Canada**

**Definition – Diluted earnings per share before the impact of adjusting items and the performance of Canada (where appropriate, and excluding** 

**New Categories), after adjustments to the number of shares outstanding for the impact of share option schemes whether they would be dilutive** 

**or not under statutory measures, presented at the current and the prior years' rates of exchange.**

As management is assessed on adjusted diluted EPS at constant rates also as adjusted for Canada within the Group's incentive schemes, as reported under this Item

6. B - Compensation, this measure is also presented adjusting for the performance of Canada (excluding New Categories).

Adjusted diluted EPS as adjusted for Canada is not necessarily comparable to similarly titled measures used by other companies. Adjusted diluted EPS as

adjusted for Canada has limitations as an analytical tool is not a presentation made in accordance with IFRS and should not be used in isolation from, or as a

substitute for, diluted EPS as determined in accordance with IFRS. The most directly comparable IFRS measure to adjusted diluted EPS as adjusted for

Canada is diluted EPS.

The definition of adjusting items is explained in note in Part III - Item 18 Notes on the Accounts.

The table below reconciles adjusted diluted EPS to adjusted diluted EPS as adjusted for Canada at current exchange rates and at constant exchange rates

based upon a re-translation of adjusted diluted EPS for each year, at the previous year's exchange rate.

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | |
|:---|:---|:---|
| For the year ended 31 December | 2025 | 2024 |
|  | **pence** | pence |
| **Adjusted diluted earnings per share as per page [46](#i71dd3cfa32dd46f092cff6b4620b47a0_511450)** | **352.1** | 362.5 |
| Adjustments in respect of Canada<sup>1</sup> | (11.6) | (21.4) |
| **Adjusted diluted earnings per share as adjusted for Canada**<sup>2</sup> | **340.5** | 341.1 |
| **Adjusted diluted earnings per share, at 2024 exchange rates as per page [46](#i71dd3cfa32dd46f092cff6b4620b47a0_511450)** | **365.0** | 362.5 |
| Adjustments in respect of Canada<sup>1</sup>, translated at 2024 exchange rates | **(12.2)** | (21.4) |
| **Adjusted diluted earnings per share as adjusted for Canada, translated at 2024 exchange rates**  | **352.8** | 341.1 |

---

1. The adjustment in respect of Canada is discussed on page [70](#i7f61e46191684bd8bf47ec92404e732a_374233), with the adjustment based upon the profit after interest and tax from all sources, excluding New Categories, in Canada.

2. The Group's dividend pay-out ratio is with reference to adjusted diluted earnings per share, at current rates. Based upon a dividend of 245.04p in 2025 (2024: 240.24p), this was a dividend pay-out ratio of 69.6% in

2025 (2024: 66.3%).

**Operating Cash Flow Conversion Ratio**

**Definition – Net cash generated from operating activities before the impact of adjusting items and dividends from associates and excluding taxes** 

**paid and net capital expenditure, as a proportion of adjusted profit from operations.**

This measure is used within the Group's incentive schemes as reportedunder this Item 6.B - Compensation, as an indicator of the Group's ability to turn profits into

cash.

Operating cash flow conversion ratio (calculated as operating cash flow as a proportion of adjusted profit from operations) has limitations as an analytical tool. It is not a

presentation made in accordance with IFRS and should not be considered as an alternative to measures of liquidity or financial position as determined in accordance with

IFRS. The most directly comparable IFRS measure to operating cash flow conversion ratio is cash conversion ratio, calculated as net cash generated from operating

activities as a proportion of profit from operations. Operating cash flow conversion ratio is not necessarily comparable to similarly titled measures used by other

companies.

The table below reconciles net cash generated from operating activities to operating cash flow. The table also provides cash conversion ratio and operating

cash flow conversion for the periods presented.

---

| | | |
|:---|:---|:---|
| For the year ended 31 December | 2025 | 2024 |
|  | **£m** | £m |
| **Net cash generated from operating activities** | **6342** | 10125 |
| Cash related to adjusting items | **3267** | 824 |
| Dividends from associates | **(369)** | (406) |
| Tax paid | **2926** | 1854 |
| Net capital expenditure | **(612)** | (434) |
| Other | **—** | 1 |
| **Operating cash flow** | **11554** | 11964 |
| **Adjusted profit from operations\*** | **11572** | 11890 |
| **Cash conversion ratio\*\*** | **63%** | 370% |
| **Operating cash flow conversion ratio** | **100%** | 101% |

---

**Notes:**

\*See page [44](#ief2b97e0234e4b59a164ebaaec0811fe_2-0-1-1-1530776) for a reconciliation of profit from operations to adjusted profit from operations.

\*\*Net cash generated from operating activities as a percentage of profit from operations.

**Adjusted Cash Generated from Operations (at Current and Constant Rates of Exchange)** 

**Definition – Net cash generated from operating activities before the impact of adjusting items, excluding dividends received from associates, and** 

**after dividends paid to non-controlling interests, net interest paid and net capital expenditure, and translational foreign exchange.** 

Adjusted cash generated from operations is a measure of cash flow which is used within the Group's incentive schemes, as reported under this Item 6.B -

Compensation.

Adjusted cash generated from operations has limitations as an analytical tool. It is not a presentation made in accordance with IFRS and should not be

considered as an alternative to measures of liquidity or financial position as determined in accordance with IFRS. The most directly comparable IFRS

measure to adjusted cash generated from operations is net cash generated from operating activities. Adjusted cash generated from operations is not

necessarily comparable to similarly titled measures used by other companies. As a result, you should not consider this measure in isolation from, or as a

substitute analysis for, the Group's results of operations or cash flows as determined in accordance with IFRS.

The table below reconciles net cash generated from operating activities to adjusted cash generated from operations and adjusted cash generated from

operations at constant rates, based upon a re-translation of adjusted cash generated from operations for each year, at the previous year's exchange rate.

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | |
|:---|:---|:---|
| For the year ended 31 December | 2025 | 2024 |
|  | **£m** | £m |
| **Net cash generated from operating activities** | **6342** | 10125 |
| Dividends paid to non-controlling interests | **(100)** | (121) |
| Net interest paid | **(1582)** | (1669) |
| Net capital expenditure | **(612)** | (434) |
| Effect of deferral of U.S. tax, in line with the federal disaster declaration in central and western North Carolina | **—** | (700) |
| Cash related to adjusting items within adjusted cash generated from operations | **3176** | 360 |
| Other costs excluding litigation and restructuring costs | **27** | 399 |
| Dividends from associates | **(369)** | (406) |
| **Adjusted cash generated from operations** | **6882** | 7554 |
| Impact of translational foreign exchange | **258** |  |
| **Adjusted cash generated from operations, translated at 2024 exchange rates** | **7140** | 7554 |

---

In 2024, the Group deferred tax payments in the U.S. from 2024 to 2025 totalling US$895 million. At 2024 rates of exchange this was £700 million, but

£678 million at 2025 rates of exchange. For the purposes of management incentives in 2024, as this was not included in the target, the positive effect of the

deferral was removed. However, the payment was included in the target for management incentives in 2025 and no adjustment has been made in the

calculation of adjusted cash generated from operations. On a normalised basis, adjusting both years for the respective impact of the deferral, adjusted cash

generated from operations would have been £7,560 million, or £7,840 million at constant rates of exchange in 2025 compared to £7,554 million in 2024.

**Adjusted Return on Capital Employed (ROCE) and Adjusted Return on Capital Employed as adjusted for Canada**

**Definition – Profit from operations, excluding adjusting items and including dividends from associates and joint ventures and** 

**other adjusting items (including in respect of Canada (excluding New Categories)), as a proportion of average total assets less current** 

**liabilities in the period.**

Adjusted ROCE and Adjusted ROCE as adjusted for Canada are used within the Group's incentive schemes, as reported under this Item 6.B - Compensation.

Adjusted ROCE and adjusted ROCE as adjusted for Canada are not measures defined by IFRS. The most directly comparable IFRS measure to adjusted

ROCE and adjusted ROCE as adjusted for Canada is profit from operations as a proportion of average total assets less current liabilities.

Adjusted ROCE and adjusted ROCE as adjusted for Canada have limitations as analytical tools. They are not presentations made in accordance with IFRS

and should not be considered as an alternative to other measures that may be derived from the financial statements prepared in accordance with IFRS.

Adjusted ROCE and adjusted ROCE as adjusted for Canada are not necessarily comparable to similarly titled measures used by other companies. The

definition of adjusting items is provided in note 1 in Part III - Item 18 Notes on the Accounts.

The table below reconciles profit from operations to adjusted profit from operations including dividends from associates and joint ventures, including as

adjusted for Canada and provides the constituent parts of average capital employed.

---

| | | |
|:---|:---|:---|
| For the year ended 31 December | 2025 | 2024 |
|  | **£m** | £m |
| **Profit from operations** | **9997** | 2736 |
| Adjusting items  | **1575** | 9154 |
| Dividends received from associates and joint ventures | **369** | 406 |
| **Adjusted profit from operations, inclusive of dividends from associates and joint ventures** | **11941** | 12296 |
| Adjustments in respect of Canada<sup>1</sup> | **(293)** | (520) |
| **Adjusted profit from operations, inclusive of dividends from associates and joint ventures and as adjusted for** <br>**Canada**<sup>1</sup><br>| **11648** | 11776 |
| Total Assets | **109290** | 118899 |
| Current Liabilities | **14524** | 18743 |
| **Capital employed at balance sheet date** | **94766** | 100156 |
| Average capital<sup>2</sup> | **97461** | 101600 |
| **Adjusted ROCE** | **+12.3%** | +12.1% |
| **Adjusted ROCE as adjusted for Canada**<sup>1</sup> | **+12.0%** | +11.6% |

---

1. The adjustment in respect of Canada is discussed on page [70](#i7f61e46191684bd8bf47ec92404e732a_374233), with the adjustment based upon the profit after interest and tax from all sources, excluding New Categories, in Canada.

2. Average capital is the average capital employed (being the net of total assets less current liabilities) at the prior year and current year balance sheet dates.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Item 6. C - Board practices**

**Board tenure and attendance at meetings**

---

| | | |
|:---|:---|:---|
| **Attendance at Board meetings in 2025**<sup>1</sup> | **Attendance at Board meetings in 2025**<sup>1</sup> | **Attendance at Board meetings in 2025**<sup>1</sup> |
|  |  | Attended/Eligible to <br>attend<br>|
| Name | Director since | Meetings<sup>4</sup> |
| Luc Jobin<sup>5</sup> | 2017 | 9/9 |
| Tadeu Marroco<sup>3(d)</sup> | 2019 | 8/9 |
| Kandy Anand<sup>3(a)</sup> | 2022 | 8/9 |
| Karen Guerra<sup>3(a)</sup> | 2020 | 8/9 |
| Holly Keller Koeppel<sup>2(e)</sup> | 2017 | 9/9 |
| Uta Kemmerich-Keil<sup>2(a), 3(b)</sup> | 2025 | 7/8 |
| Véronique Laury<sup>3(c)</sup> | 2022 | 7/9 |
| Darrell Thomas<sup>3(d)</sup> | 2020 | 8/9 |
| Serpil Timuray<sup>3(e)</sup> | 2023 | 8/9 |
| Matthew Wright<sup>2(b), 3(d)</sup> | 2025 | 1/2 |
| Soraya Benchikh<sup>2(c), 3(g)</sup> | 2024-2025 | 3/4 |
| Murray S. Kessler<sup>2(d), 3(f)</sup> | 2023-2025 | 0/1 |

---

**Notes:**

1. Number of meetings in 2025: The Board held nine meetings in 2025, four of which were ad hoc. An ad hoc meeting was called in May 2025 to review succession planning for the Management Board. Two ad hoc

meetings were called in August 2025, the first to consider transition of the role of Chief Financial Officer and the second to review further succession planning for the Management Board and matters relating to the

Company's share buy-back programme. An ad hoc meeting was also called in December 2025 to consider Board Committee composition.

2. Composition: The Board of Directors is shown as at the date of this Form 20-F; (a) Uta Kemmerich-Keil joined the Board with effect from 17 February 2025 on her appointment as a Non-Executive Director; (b)

Matthew Wright joined the Board with effect from 1 November 2025 on his appointment as a Non-Executive Director; (c) Soraya Benchikh stepped down from the Board with effect from 26 August 2025; (d)

Murray S. Kessler stepped down from the Board with effect from 17 February 2025; (e) Holly Keller Koeppel will step down from the Board with effect from the conclusion of the 2026 Annual General Meeting

and will not be proposed for re-election.

3. Attendance at meetings: Due to prior commitments: (a) Kandy Anand and Karen Guerra did not attend the second ad hoc meeting called at short notice in August 2025; (b) Uta Kemmerich-Keil did not attend the

scheduled meeting in April 2025; (c) Véronique Laury did not attend the ad hoc meeting called at short notice in May 2025 and the second ad hoc meeting called on short notice in August 2025; (d) Tadeu

Marroco, Darrell Thomas and Matthew Wright did not attend the ad hoc meeting called at short notice in December 2025; (e) Serpil Timuray did not attend the first ad hoc meeting called at short notice in August

2025; (f) Murray Kessler did not attend the scheduled meeting in February 2025; (g) Soraya Benchikh did not attend the ad hoc meeting called at short notice in May 2025. The first ad hoc meeting in August

2025 convened to consider transition of the role of Chief Financial Officer was not attended by Soraya Benchikh.

4. Number of meetings in2026: Five Board meetings are scheduled for 2026, with ad hoc meetings convened as may be required.

5. The Board has unanimously decided to extend Luc Jobin's tenure as Chair for a period of up to two years until the Company's Annual General Meeting in April 2028, with the aim of appointing a new Chair

within that time. Luc's re-election will be presented for annual shareholder approval at the Company's Annual General Meeting in the usual way.

**Terms of Appointment to the Board**

Details of the Directors' terms of appointment and the Company's policy on payments for loss of office are set out in the 2025 Directors' Remuneration

Policy (set out in the Remuneration Report in the Company's Annual Report and Form 20-F for 2024). The Executive Directors have rolling one-year

contracts. Non-Executive Directors do not have service contracts with the Company but instead have letters of appointment for one year, with an expected time

commitment of 25 to 30 days per year. Fees for Non-Executive Directors and the Chair cannot currently exceed in aggregate an annual sum of £2,500,000 as

authorised by shareholders with reference to the Company's Articles of Association. Any Director who holds any other office in the Company (including the

office of Chair of the Board), serves on any Committee of the Board, or performs services that the Directors consider go beyond the ordinary duties of a

Director may be paid such additional remuneration as the Directors may determine.

All Directors must retire from office at each annual general meeting (AGM) and seek re-election, except any Director appointed by the Board after notice of

that AGM has been given and before the AGM has been held. All of the Directors of the Company will be subject to re-election at the forthcoming AGM to

be held on 15 April 2026 in accordance with the Articles.

**Terms of Appointment for the Chair of the Board and other Non-Executive Directors**

Non-Executive Directors, including the Chair of the Board, are appointed as officeholders, not employees. In any given year, the period of appointment runs

from the close of the Company's last AGM to the close of the Company's next AGM.

The Chair of the Board may terminate his or her appointment with one month's written notice, and the Company may give a compensation payment in lieu

of all or part of such notice. The Chair may be removed by the Company prior to the expiry of his or her term of appointment by three months' written notice

or a compensation payment in lieu of all or part of such notice.

A Non-Executive Director may terminate his or her appointment at any time in accordance with the Company's Articles of Association. Alternatively, a

Non-Executive Director's appointment will terminate if: (1) the Board requests that he or she not offer himself or herself for re-election at the next AGM; (2)

the Non-Executive Director is not re-elected at the next AGM; (3) the Non-Executive Director is required to vacate office for any reason pursuant to any of

the provisions of the Company's Articles of Association; or (4) the Non-Executive Director is removed as Director or otherwise required to vacate office

under any applicable law.

British American Tobacco p.l.c. Form 20-F 2025<br>

The Chair of the Board and other Non-Executive Directors do not participate in any discussion on their own respective remuneration.

---

| | |
|:---|:---|
| **Chair of the Board and Non-Executive Directors** | **Chair of the Board and Non-Executive Directors** |
| **Fees**  | The Chair of the Board receives a single all-inclusive fee. Other Non-Executive Directors receive a base fee and may also receive <br>additional fees in respect of committee membership and/or chairmanship.<br>The Committee considers annually the fee payable to the Chair of the Board and the Board considers fees payable to the other <br>Non-Executive Directors. This process may take into account factors including the breadth and demands of the relevant role as <br>well as comparison with fees paid by the comparator group of companies used in the base salary review of Executive Directors. <br>The annual review does not necessarily result in a change to the fees.<br>The Company has the discretion to pay additional fees to the Chair of the Board and/or Non-Executive Directors should the <br>Company require significant additional time commitment in exceptional or unforeseen circumstances.<br>Fees may be paid in cash or a combination of cash and shares, with the proportion to be paid in shares in a year to be disclosed in <br>the relevant Directors' Remuneration Report.<br>It is anticipated that any future aggregate increase in fees for the Chair of the Board and other Non- Executive Directors will <br>generally be in the range of the increases in the base pay of UK-based employees in the Group.<sup>1</sup><br>|
| **Benefits, travel and** <br>**related expenses**<br>| The Chair of the Board and Non-Executive Directors may be reimbursed for the cost of travel, accommodation and related <br>expenses incurred in connection with their duties and are eligible to use general practitioner 'walk-in' services. The Chair of the <br>Board and Non-Executive Directors and their partners may attend hospitality or similar functions.<br>Benefits for the Chair of the Board may also include: the use of a Company driver; private medical insurance and personal accident <br>insurance benefits; the provision of home and personal security; and assistance in relation to personal tax matters.<br>If necessary, the Company will pay for independent professional advice in connection with the performance of duties as Chair of <br>the Board and Non-Executive Directors.<br>The Company provides D&O insurance and an indemnity to the Chair of the Board and Non-Executive Directors to cover costs <br>and liabilities incurred in the execution of their duties.<br>In instances where any benefits, reimbursements or expenses are classified by HMRC as a benefit to the Chair of the Board and <br>Non-Executive Directors, it is also the practice of the Company to pay any tax due on any such benefits.<br>|
| **Other** | There are no formal requirements or guidelines to hold shares in the Company. The Chair of the Board and Non-Executive <br>Directors are not eligible to participate in the British American Tobacco share schemes, bonus schemes or incentive plans, or be a <br>member of any Group pension plan.<br>|

---

**Note:**

1. Fees for Non-Executive Directors and the Chair cannot currently exceed in aggregate an annual sum of £2,500,000 as authorised by shareholders with reference to the Company's Articles of Association. Any

Director who holds any other office in the Company (including the office of Chair of the Board), serves on any Committee of the Board, or performs services that the Directors consider go beyond the ordinary

duties of a Director may be paid such additional remuneration as the Directors may determine.

**Non-Executive Directors' letters of appointment**

Non-Executive Directors, including the Chair of the Board, have letters of appointment which are signed annually upon re-election at the AGM and are

available for inspection at the AGM or at the Company's registered office. For further details on appointment and reappointment of Non-Executive Directors,

see the Governance section on pages [81](#i5609ff1984d34d9e97a4760570555b9a_78200) to [82](#if36589f1108d4f15a77164fe74058074_7-0-1-1-1372073).

**Non-Executive Director recruitment**

The remuneration package for new Non-Executive Directors is determined within the confines of the Policy table for Non-Executive Directors fees, and

subject to the Articles of Association. Non-Executive Directors are not offered variable remuneration or retention awards. When determining the benefits for

a new Chair of the Board, the individual circumstances of the future Chair will be taken into account.

**Non-Executive Director termination of office**

No payments for loss of office will be made to Non-Executive Directors.

**Executive Director service contracts and loss of office provisions**

The table below sets out the effective dates of the Executive Directors' service contracts.

---

| | |
|:---|:---|
| **Executive Director** | **Effective date of current service contract** |
| Tadeu Marroco | 15 May 2023 |
| Soraya Benchikh | 1 May 2024<sup>\*</sup> |

---

\*Ms Benchikh stepped down from the Board on 26 August 2025. Her service contract was terminated on 31 December 2025.

Copies may be inspected at the Company's registered office.

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | |
|:---|:---|
| **Provision**  |  |
| **Notice period**  | Employed on a permanent contract, terminable by either party on one year's notice. The Company may require the Executive <br>Director to be on garden leave during all or any part of the period of notice (whether given by the Executive Director or the <br>Company).<br>|
| **Contractual terms** | The contracts include obligations which could give rise to, or impact upon, remuneration and/or payments for loss of office.<br>The primary obligations under the contracts which may give rise to remuneration or payments for loss of office are as follows:<br>–to terminate the contract only on the expiry of 12 months' written notice or to make a payment in lieu of notice in respect of all, <br>or the unexpired part, of the 12 months' notice calculated based on: (1) salary at then current base pay; and (2) the cost to the <br>Company of providing private medical expenses insurance and personal accident insurance (or the Company may, at its option, <br>continue those benefits for the unexpired period of the notice). In determining the value of a payment in lieu of notice the <br>Company shall not be required to reward failure on the part of the Executive Director and shall have regard to corporate <br>governance standards at the termination date. The Company may, at its reasonable discretion, make the payment in lieu of notice <br>in phased monthly or quarterly instalments and may determine that it should be reduced in accordance with the duty on the part <br>of the Executive Director to mitigate their loss; and<br>–to continue to pay the Executive Director's salary and contractual benefits during any garden leave period.<br>In addition to the contractual rights to a payment on loss of office, the Executive Director may have statutory and/or common law <br>rights to certain additional payments depending on the circumstances of the termination.<br>|
| **Treatment of STI** <br>**and Deferred Bonus** <br>**Scheme (DSBS)** <br>**awards**<br>| The following provisions will normally apply: <br>–In the event of death, disability, injury or ill health, and other circumstances at the Committee's discretion, any STI in the year of <br>departure is pro-rated based on service and deferred awards under the DSBS will vest upon termination of employment. <br>–Payments made during a notice period or after cessation may, at the discretion of the Committee, be made in cash only.<br>–STI amount payable will be determined based on the assessment of the actual full-year performance and paid at the normal time. <br>–In other circumstances (including resignation and summary dismissal), no STI award will be made and DSBS awards will lapse <br>unless the Committee, in its absolute discretion, decides otherwise.<br>|
| **Treatment of PSP** <br>**awards**<br>| PSP awards will be treated in accordance with the applicable plan rules. The following provisions will normally apply:<br>–In the event of disability, injury or ill health, and other circumstances at the Committee's discretion outstanding awards will <br>continue to vest and will ordinarily be reduced pro-rata for time elapsed during the performance period. <br>–Awards will remain subject to the same vesting period, performance conditions, holding period and malus and clawback <br>provisions, as if the Executive Director had remained in employment. <br>–The extent to which awards vest will be determined by the Committee taking into account the extent to which the performance <br>conditions have been satisfied.<br>–In the event of death, the award will vest in full on the date of death.<br>–In other circumstances (including resignation and summary dismissal): unvested awards will lapse on cessation of employment, <br>unless the Committee, in its absolute discretion, decides otherwise.<br>|
| **All-employee share** <br>**schemes**<br>| Executive Directors are treated in accordance with the scheme rules, in the same manner as applies to all employees. |
| **Other**  | The Company may make payment of legal fees and/or other professional advice fees incurred by an individual in connection with <br>their termination of employment, and/or fees for outplacement services. Payment may also be made in relation to accrued but <br>untaken holiday.<br>Reimbursement of reasonable relocation costs where an Executive Director (and, where relevant, his or her family) had originally <br>relocated to take up the appointment; this may include the shipment of personal goods and winding-up his or her affairs in the UK <br>and the incidental costs incurred in doing so.<br>In certain circumstances, the Committee may approve new contractual arrangements with departing Executive Directors, <br>potentially including (but not limited to) settlement, confidentiality, restrictive covenants and/or consultancy arrangements. These <br>arrangements would only be entered into where the Committee believes that it is in the best interests of the Company and its <br>shareholders to do so.<br>|

---

For a summary of the current Remuneration Policy, see Item 6.B, on page[61](#ia53e6ca54d894bde98684b8ab3a259a8_1099511634267).

**Payments to past Directors or for loss of office**

Ms Benchikh stepped down from the Board on 26 August 2025. Arrangements relating to Ms Benchikh's departure were approved by the Remuneration

Committee and are consistent with the Directors' Remuneration Policy and the relevant incentive plan rules.

Ms Benchikh remained employed for the period from 26 August 2025 to 31 December 2025, and received £296,032 base salary and benefits with a total

value of £102,022 (pension, medical and personal accident insurance, and tax advice from the Company's nominated advisers). A capped contribution of

£30,000 (plus VAT) was made towards legal fees incurred in connection with her departure and she has also received executive outplacement services with a

value of £70,000 (plus VAT).

For the period from 1 January 2026 to 23 August 2026 (being the remainder of her 12-month notice period), Ms Benchikh will receive a payment in lieu of

notice equivalent to salary (£531,968). Payments will be made in equal monthly instalments, subject to mitigation. Insured benefits (medical insurance and

personal accident cover) with a total value of £21,823 will continue to be provided until the end of the notice period. No further Company contributions will

be made to Ms Benchikh's UK Defined Contribution arrangement after 31 December 2025.

In May 2026, Ms Benchikh will also receive the final housing allowance payment (£96,000) and schooling support (£30,000), in line with her contractual

entitlements and will continue to be entitled to receive tax advice for 2026 with a value of up to £30,000 (plus VAT) with the Company covering any

associated tax liability arising.

Ms Benchikh will receive a pro-rated bonus under the Company's STI Plan for the 2025 financial year, reflecting her service as an Executive Director during

that period. In accordance with the Remuneration Policy, the bonus will be paid wholly in cash, without deferral.

Her outstanding deferred bonus award granted in 2025 over 12,527 shares (in respect of performance in 2024) will be released in line with the original

schedule in March 2028, subject to malus and clawback provisions. Ms Benchikh will also retain a pro-rated portion of her long-term incentive awards

British American Tobacco p.l.c. Form 20-F 2025<br>

granted in 2024 and 2025. These awards remain outstanding in respect of 66,285 and 12,582 shares, respectively, and will vest on their respective normal

vesting dates, subject to performance assessment, and will be released following a two-year holding period in March 2029 and March 2030, respectively.

Both awards remain subject to malus and clawback provisions. Ms Benchikh retained her outstanding buy-out awards granted in 2024, to be released on the

original schedule (23,368 shares having been released in September 2025, and a further 42,550 shares to be released in September 2026). Share awards shall

continue to accrue dividend equivalents, in accordance with the terms on which they were granted.

At the termination date, Ms Benchikh held 128 shares under the BAT Share Incentive Plan. In accordance with HMRC-approved rules, 40 shares awarded

under the BAT Share Incentive Plan were sold to cover applicable taxes in accordance with HMRC-approved rules. The remaining 92 shares (including an

additional 4 shares purchased on 7 January 2026) were transferred to her. She will remain subject to the post-employment shareholding requirement in

respect of shares she acquired as an Executive Director until 26 August 2027.

Except as outlined above, no other payments were made to past Directors or in respect of loss of office. For further details related to the Executive

Directors' compensation see note 30in Part III - Item 18 Notes on the Accounts.

**Board Committees**

**Audit Committee**

---

| |
|:---|
| **Current Members** |
| Darrell Thomas (Chair) |
| Uta Kemmerich-Keil |
| Véronique Laury |

---

**Audit Committee Terms of Reference**

Revised terms of reference for the Audit Committee were introduced with effect from 1 November 2025 to reflect the introduction of Provision 29 of the UK

Corporate Governance Code 2024 (the 2024 Code).For the Committee's terms of reference see www.bat.com/governance

**Audit Committee Role**

As set out in its terms of reference, the Audit Committee monitors and reviews:

–integrity of the Group's financial statements and formal announcements relating to the Company's performance, considering any significant financial

reporting issues, significant judgements and estimates reflected in them, before their submission to the Board;

–consistency of the Group's accounting policies;

–effectiveness of, and makes recommendations to the Board on, the Group's risk management and internal control framework. This includes accounting

controls, auditing matters, other material controls (including financial, operational, reporting and compliance controls) and business risk management

systems. From financial year 2026, this will also include advice to the Board to support its annual declaration of the effectiveness of material controls;

–effectiveness of the Group's internal audit function;

–independence, performance, effectiveness and objectivity of the Company's external auditors, makes recommendations to the Board as to their

reappointment (or for a tender of audit services where appropriate), and approves their terms of engagement and the level of audit, audit-related and non-

audit fees; and

–assurance activities conducted by the external assurance provider in relation to Group reporting and scope of assurance activities, makes recommendations

for their appointment, and approves their terms of engagement and fees.

---

| | | |
|:---|:---|:---|
| **Attendance at meetings in 2025**<sup>1(a), 2(a)</sup> | **Attendance at meetings in 2025**<sup>1(a), 2(a)</sup> | **Attendance at meetings in 2025**<sup>1(a), 2(a)</sup> |
|  |  | Meeting attendance<sup>3,4</sup> |
| Name | Member since | Attended/<br>Eligible to attend<br>|
| Darrell Thomas<sup>2(b)</sup> | 2020 | 5/5 |
| Uta Kemmerich-Keil<sup>1(b), 2(c)</sup> | 2025 | 3/4 |
| Véronique Laury | 2022 | 5/5 |
| Holly Keller Koeppel<sup>2(b), 2(e)</sup> | 2017-2025 | 5/5 |
| Karen Guerra<sup>2(d)</sup> | 2021-2025 | 0/0 |

---

**Notes:**

1. Meetings: (a) the Committee held five meetings in 2025. Five meetings of the Committee are scheduled for 2026. Additional meetings are convened on an ad hoc basis as required during the year; (b) Uta

Kemmerich-Keil did not attend the scheduled meeting in April 2025 due to prior commitments.

2. Membership: (a) all members of the Committee are independent Non-Executive Directors in accordance with the 2024 Code Provisions 10 and 24 and applicable U.S. federal securities laws and NYSE listing

standards. The Board has determined each Committee member to meet the financial literacy requirements applicable under NYSE listing standards. Each member of the Committee has recent and relevant

financial experience in accordance with the 2024 Code. The Committee has competence in accounting and Committee members as a whole have competence relevant to the sectors the Group operates in as

required by the UK Disclosure Guidance and Transparency Rules; (b) Darrell Thomasis, and Holly Keller Koeppel was during 2025, designated as an audit committee financial expert in accordance with

applicable U.S. federal securities laws and NYSE listing standards; (c) Uta Kemmerich-Keil joined the Committee on 17 February 2025 on her appointment to the Board; (d) Karen Guerra ceased to be a member

of the Committee with effect from 10 February 2025 when she joined the Remuneration Committee; (e) Holly Keller Koeppel ceased to be a member of the Committee with effect from 31 December 2025.

3. The Chief Financial Officer attends all Committee meetings but is not a member. Other Directors may attend by invitation. The Director, Legal and General Counsel, the Group Head of Internal Audit and the

external auditors generally attend all meetings of the Committee.

4. The Committee met alone with the external auditors, and, separately with the Group Head of Internal Audit, at the end of every Committee meeting. The Committee also meets periodically with management.

**Key Activities in 2025**

**Regular work programme includes reviewing:**

–the Group's annual results, half-year results, the application of accounting standards and the external auditors' reports where results are audited;

–the basis of preparation and accounting judgements, including application of segmental reporting;

–adjusting items, applicable accounting treatments and the use of alternative performance measures;

–the annual programme of assessment of goodwill and intangibles impairment;

–the steps taken to validate the Group's 'going concern' assessment at half-year and year-end;

British American Tobacco p.l.c. Form 20-F 2025<br>

–the Group's liquidity position, including current facilities and financing needs;

–the assessment of Group viability, taking into account the Group's current position, Principal Risks and associated stress-testing analysis, and steps taken to

determine the Group's viability statement at year-end, prior to review by the Board;

–significant tax matters for the Group, including rate of taxation and external developments that may impact the Group's tax position;

–accounting treatment applicable to post-employment benefits liabilities and assets;

–the internal processes followed for the preparation of the Combined Annual and Sustainability Report 2025 (the Annual Report) and confirming that the

processes appropriately facilitated the preparation of an Annual Report that is 'fair, balanced and understandable';

–the Group's external auditors' year-end audit, including the key audit matters, critical audit matters, assessments of materiality and the Group's control

environment, and assessment of independence of the Group's external auditors;

–the Group's risk management and internal control framework, including the effectiveness of accounting and other material controls, including financial,

operational, reporting and compliance controls;

–risks to the Group, including the Group risk register, prioritisation and categorisation of Group risks, relevant mitigating factors and emerging risks to the

Group;

–oversight of management's activities to ensure ongoing compliance with the U.S. Sarbanes-Oxley Act of 2002 (SOx) (discussed under Item 15 - Controls

and procedures);

–the Company's status as a Foreign Private Issuer for the purposes of U.S. securities laws;

–regular reports from the Group Head of Internal Audit on internal audits of markets, business units, processes, operations and major change initiatives,

management responses to internal audit findings and action plans put in place to address any issues raised;

–progress against the internal audit plan for 2025 and design of the 2026 internal audit plan;

–the Group's sustainability performance on an annual basis, including performance against the Group's sustainability targets, the Group's responsible

marketing framework and under-age access prevention activities;

–external assurance activities performed by the independent assurance provider over selected sustainability metrics and related disclosures and review of

assurance outcomes with the assurance provider;

–annual and interim reports on the Group's Delivery with Integrity compliance programme, and monitoring compliance with the SoBC, incident reporting

and the effectiveness of Speak Up channels, prior, to review by the Board;

–the outcomes of human rights assessments for countries in which Group companies operate that are identified to have a higher degree of exposure to

human rights risks in 2025, including policy compliance, standards, controls and local measures in place to enhance human rights risk management;

–periodic reports from the Group's Corporate Audit Committee and Regional Audit Committees;

–the annual report from the Group Head of Security on security risks, losses and any instances of fraud arising during the preceding year;

–half-year and year-end reports on the Group's political contributions; and

–the Committee's effectiveness and any actions for the subsequent year, following the annual review of the Committee's performance.

**Remuneration Committee**

---

| |
|:---|
| **Remuneration Committee current members** |
| Kandy Anand (Chair) |
| Karen Guerra |
| Serpil Timuray |
| Matthew Wright |

---

**Remuneration Committee Terms of Reference**

Revised terms of reference for the Remuneration Committee were introduced with effect from 1 November 2025. The Committee's terms of reference align

with the 2024 Code as it applies to the Company from 1 January 2025.For the Committee's terms of reference see www.bat.com/governance

**Remuneration Committee Role**

As set out in the Terms of Reference, the Remuneration Committee is responsible for:

–determining and proposing the Directors' Remuneration Policy (including salary, benefits, performance-based variable rewards and retirement benefits)

for shareholder approval;

–determining, within the terms of the approved Directors' Remuneration Policy, the specific remuneration packages for the Chair and the Executive

Directors, on appointment, on review and, if appropriate, any compensation payment due on termination of appointment;

–the setting of targets applicable for the Company's performance-based variable reward schemes and determining achievement against those targets, including

consideration of factors relating to any potential adjustments, for example, to reflect changes in the Group's business context such as restructuring, mergers and

acquisitions activity; exercising discretion where appropriate and as provided by the applicable scheme rules and the Directors' Remuneration Policy;

–reviewing Group workforce remuneration and related policies and the alignment of incentives and rewards with Group culture, taking these into account in setting the

remuneration policy for Executive Directors, members of the Management Board and the Company Secretary, providing feedback to the Board on workforce reward,

incentives and conditions applicable across the Group, and supporting the Board's monitoring of the Group's culture and its alignment with the Group's purpose, values

and strategy;

–setting remuneration for members of the Management Board and the Company Secretary; and

–monitoring and advising the Board on any major changes to the policy on employee benefit structures for the Group.

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | |
|:---|:---|:---|
| **Attendance at meetings in 2025**<sup>2(a)</sup> | **Attendance at meetings in 2025**<sup>2(a)</sup> | **Attendance at meetings in 2025**<sup>2(a)</sup> |
| Name | Member <br>since<br>| Meeting attendance<br>Attended/Eligible to attend<sup>1</sup><br>|
| Kandy Anand | 2022 | 8/8 |
| Karen Guerra<sup>2(b)</sup> | 2025 | 8/8 |
| Serpil Timuray | 2023 | 8/8 |
| Murray S. Kessler<sup>2(c)</sup> | 2023 - 2025 | 0/1 |
| Matthew Wright<sup>2(d)</sup> | 2025 | 2/2 |

---

**Notes:**

1. Number of meetings in 2025: The Committee held eight meetings in 2025, four of which were ad hoc. Four meetings of the Committee are scheduled for 2026. Additional meetings are convened on an ad hoc

basis as required during the year.

2. Membership: (a) all members of the Committee are independent Non-Executive Directors in accordance with the 2024 Code Provisions 10 and 32 and applicable NYSE listing standards; (b) Karen Guerra joined

the Committee with effect from 10 February 2025; (c) Murray Kessler was unable to attend the scheduled meeting in February 2025 due to prior commitments and he ceased to be a member of the Committee on

stepping down from the Board with effect from 17 February 2025; (d) Matthew Wright joined the Committee with effect from 1 November 2025.

**Regular work programme 2025**

The Remuneration Committee:

–reviewed the Chair's fee from 1 May 2025, taking into account market positioning, the external market environment and the level of salary increases

awarded to UK employees;

–reviewed salary for the Chief Executive and the Chief Financial Officer to take effect from 1 April 2025, taking into account market positioning, the

external market environment including stakeholder expectations and shareholder perspectives, individual performance and the level of salary increases

awarded to UK employees;

–reviewed salaries for members of the Management Board and the Company Secretary from 1 April 2025, taking into account market positioning, the

external market environment, individual performance and the level of salary increases awarded to UK employees;

–assessed the achievement against the targets for the 2024 STI award and set the STI targets for 2025 to provide an appropriate degree of stretch within the

target ranges to drive performance in alignment with the Group's strategic objectives and shareholder interests;

–reviewed updates on performance against the 2025 STI target measures and for outstanding LTI awards;

–assessed the achievement against the performance conditions for the vesting of the 2022 LTIP award, determined the contingent level of LTI awards for

March 2025 and reviewed the associated performance conditions;

–assessed the achievement against the targets for the 2024 Share Reward Scheme and set the targets for the 2025 award;

–reviewed the Annual Statement and the Annual Report on Remuneration for the year ended 31 December 2024 prior to its approval by the Board and

subsequent proposal to shareholders at the Company's AGM on 16 April 2025;

–reviewed the 2025 AGM voting results relating to remuneration resolutions, market trends in the context of that annual general meeting season and

corporate governance developments relating to executive remuneration and wider workforce remuneration in the UK and the U.S.;

–monitored the continued application of the Company's shareholding guidelines for Executive Directors and members of the Management Board; and

–reviewed the Committee's effectiveness following the Board and Committees review process.

**Other activities in 2025**

The Remuneration Committee:

–determined the final Directors' Remuneration Policy to be proposed to shareholders at the Company's 2025 AGM, discussed in detail in the Company's

Annual Report and Form 20-F for 2024, available on bat.com;

–reviewed the rules of the new British American Tobacco Performance Share Plan to be proposed to shareholders at the Company's 2025 AGM;

–determined the remuneration payable to Soraya Benchikh on stepping down as Chief Financial Officer, applying the Directors' Remuneration Policy

including the exercise of discretion in respect of Ms Benchikh's retention of her buy-out awards as well as awards granted under the Company's

performance-based variable reward schemes and relevant plan rules;

–reviewed the terms of appointment and associated remuneration, and terms relating to termination of employment, in connection with changes to

Management Board roles during the year;

–assessed various aspects of the Group's workforce remuneration strategy and alignment with our values and strategic objectives and Executive Directors'

remuneration, with specific focus on variable pay architecture and external market positioning for management grade employees across the Group;

–reviewed the rules of the British American Tobacco Sharesave Scheme to be proposed for renewal to shareholders at the Company's 2026 AGM;

–reviewed updates on the Group's employee benefits and wellbeing strategy and initiatives implemented in the year, including initiatives to manage

retirement benefits liabilities and de-risking activities;

–reviewed the Group's pay equality data and associated reporting, including UK gender pay reporting for 2024 for applicable UK Group companies prior to

publication in March 2025, and voluntary reporting on international gender pay and ethnicity pay; and

–reviewed the provision of advisory support to the Committee.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Nominations Committee**

---

| |
|:---|
| **Nominations Committee current members** |
| Luc Jobin (Chair) |
| Kandy Anand |
| Karen Guerra |
| Holly Keller Koeppel |
| Uta Kemmerich-Keil |
| Véronique Laury  |
| Darrell Thomas |
| Serpil Timuray |
| Matthew Wright |

---

**Nominations Committee Terms of Reference**

Revised terms of reference for the Nominations Committee were introduced with effect from 1 November 2025. The Committee's terms of reference align

with the 2024 Code as it applies to the Company from 1 January 2025.For the Committee's terms of reference see www.bat.com/governance

**Nominations Committee Role**

As set out in the Terms of Reference, the Nominations Committee is responsible for:

–reviewing the structure, size and composition of the Board, its Committees and the Management Board on a regular basis to ensure they have an

appropriate balance of skills, experience, knowledge and, in relation to the Board, independence;

–overseeing plans and processes for orderly succession for appointments to the Board, its Committees, the Management Board and Company Secretary to

maintain a combination of skills and experience and to ensure progressive refreshing of both Boards;

–making recommendations to the Board on suitable candidates for appointments to the Board, its Committees, the Management Board and Company

Secretary, ensuring that the procedure for those appointments is rigorous, made on merit against objective criteria, and has due regard for the promotion of

diversity, inclusion and equal opportunity;

–assessing the time needed to fulfil the roles of Chair, Senior Independent Director and Non-Executive Director, and ensuring Non-Executive Directors have

sufficient time to fulfil their duties;

–overseeing the development of a pipeline of diverse, high-performing potential Executive Directors, Management Board members and other senior

managers; and

–implementing the Board Inclusion & Diversity Policy (maintained in alignment with the UK Disclosure Guidance and Transparency Rules) and

monitoring progress towards the achievement of its objectives.

---

| | | |
|:---|:---|:---|
| **Attendance at meetings in 2025**<sup>1(a), 2(a)</sup> | **Attendance at meetings in 2025**<sup>1(a), 2(a)</sup> | **Attendance at meetings in 2025**<sup>1(a), 2(a)</sup> |
|  |  | Meeting attendance<sup>3</sup> |
| Name | Member since | Attended/Eligible to attend |
| Luc Jobin | 2017 | 9/9 |
| Kandy Anand<sup>1(b)</sup> | 2022 | 8/9 |
| Karen Guerra<sup>1(b)</sup> | 2020 | 8/9 |
| Holly Keller Koeppel | 2017 | 9/9 |
| Uta Kemmerich-Keil<sup>1(b), 2(b)</sup> | 2025 | 6/8 |
| Véronique Laury<sup>1(b)</sup> | 2022 | 7/9 |
| Darrell Thomas<sup>1(b)</sup> | 2020 | 8/9 |
| Serpil Timuray | 2023 | 9/9 |
| Matthew Wright<sup>1(b), 2(c)</sup> | 2025 | 1/2 |
| Murray Kessler<sup>1(b), 2(d)</sup> | 2023-2025 | 0/1 |

---

**Notes:**

1. Number of meetings in 2025: (a) the Committee held nine meetings in 2025, five of which were ad hoc. Four meetings of the Committee are scheduled for 2026. Additional meetings are convened on an ad hoc

basis as required; (b) due to prior commitments: Kandy Anand and Karen Guerra did not attend the second ad hoc meeting called at short notice in August 2025; Uta Kemmerich-Keil did not attend the ad hoc

meeting in April 2025; Véronique Laury did not attend the ad hoc meeting called at short notice in May 2025 and the second ad hoc meeting called at short notice in August 2025; Darrell Thomas and Matthew

Wright did not attend the ad hoc meeting called at short notice in December 2025; and Murray Kessler did not attend the scheduled meeting in February 2025. Uta Kemmerich-Keil did not attend the scheduled

meeting in December 2025 due to illness.

2. Membership: (a) all members of the Committee are independent Non-Executive Directors in accordance with the 2024 Code Provisions 10 and 17 and applicable U.S. federal securities laws and NYSE listing standards; (b)

Uta Kemmerich-Keil joined the Committee on 17 February 2025 on her appointment to the Board; (c) Matthew Wright joined the Committee on 1 November 2025 on his appointment to the Board; (d) Murray Kessler

ceased to be a member of the Committee on stepping down from the Board on 17 February 2025.

3. Other attendees: the Chief Executive and the Chief People Officer attend meetings by invitation but not as members.

4. Egon Zehnder Limited is an independent executive search firm, which applies the Standard and Enhanced Codes of Conduct for Executive Search Firms. The firm has no connections with the Company or its

Directors other than in respect of the provision of executive search and consultancy services.

5. Spencer Stuart & Associates Limited is an independent executive search firm, which applies the Standard and Enhanced Codes of Conduct for Executive Search Firms. The firm has no connections with the

Company or its Directors other than in respect of the provision of executive search and consultancy services.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Key Activities in 2025**

---

| |
|:---|
| –Succession planning for the role of Chair of the Board. |
| –Succession planning for the role of Senior Independent Director and recommending to the Board the appointment of Karen Guerra as Senior Independent <br>Director with effect from conclusion of the 2026 AGM, when Holly Keller Koeppel steps down from the Board.<br>|
| –Making recommendations to the Board in relation to the transition of the role of Chief Financial Officer and appointment of Javed Iqbal as Interim Chief <br>Financial Officer.<br>|
| –Succession planning for the role of Chief Financial Officer. |
| –Making recommendations to the Board to appoint Uta Kemmerich-Keil as a Non-Executive Director and member of the Audit and Nominations <br>Committees, Matthew Wright as a Non-Executive Director and a member of the Remuneration and Nominations Committees and Karen Guerra as a <br>member of the Remuneration Committee.<br>|
| –Ongoing review of the profile, capabilities and experience required of future Non-Executive Directors, taking into account the Group's strategic <br>objectives and the Directors' skills matrix, to support future Non-Executive Director succession planning activities.<br>|
| –Reviewing plans for Management Board restructuring and succession planning and making recommendations to the Board to implement changes to the <br>structure and composition of the Management Board.<br>|
| –Making recommendations to the Board in relation to Directors' annual appointment and re-election at the 2026 Annual General Meeting (or election for <br>the first time, as applicable).<br>|
| –Reviewing Executive Directors' and Management Board members' annual performance assessments and overseeing the development of a pipeline of <br>potential candidates for Management Board roles.<br>|
| –Overseeing efforts to promote an inclusive and high-performing culture across the Group as part of the Group's talent strategy, and progress in building <br>diverse representation in talent pipelines and creating enablers across the global organisation.<br>|

---

**Item 6. D - Employees**

As at 31 December 2025, the number of persons employed by the Group was 47,797 worldwide. The Group believes that its labour relations are good.

Certain temporary employees are included in the below figures. The number of such temporary employees is approximately 714 in 2025 and largely relates

to seasonal workers within operations.

The following table sets forth the number of Group employees by region in 2025, 2024 and 2023.

---

| | | | |
|:---|:---|:---|:---|
| Region (number of employees worldwide) | As at 31 December | As at 31 December | As at 31 December |
| Region (number of employees worldwide) | **2025** | 2024 | 2023 |
| U.S. | **4496** | 4192 | 3763 |
| AME | **31073** | 31347 | 30100 |
| APMEA | **12228** | 13450 | 12862 |
| **Total employees** | **47797** | 48989 | 46725 |

---

**Note:**

1. Included within the employee numbers for AME are certain employees in different locations in respect of central functions. Some of the costs of these employees are allocated or charged to the various regions

and markets in the Group.

Details of the Group's average employees by region can be found in note 29 in Part III - Item 18 Notes on the Accounts.

In 2025, we entered into a strategic partnership with Accenture – an example of our digital transformation in action. This partnership gives us access to

Accenture's technology ecosystem, AI solutions and its strategic collaboration with technology companies.

These capabilities will help us to further simplify our processes, accelerate our speed to market, upskill talent and reduce costs over the medium to long-term,

utilising Accenture's global delivery network to complement our existing shared service centre hub locations. Please refer to note 5(a)in Part III - Item 18 Notes on

the Accounts.

Also in 2025, as discussed in note 7 in Part III - Item 18 Notes on the Accounts, in 2025, the Group commenced the Fit2Win programme, a structured time-

bound programme to review processes, ways of working including use of data and automation, route to market, overhead costs and organisational design.

The programme will deliver efficiencies and facilitate faster, more agile and effective decision-making.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Item 6. E - Share ownership**

**Directors and Management Board Summary of Directors' Share Interests**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Outstanding scheme interests 31 Dec 2025**<sup>1</sup> | **Outstanding scheme interests 31 Dec 2025**<sup>1</sup> | **Outstanding scheme interests 31 Dec 2025**<sup>1</sup> | **Outstanding scheme interests 31 Dec 2025**<sup>1</sup> | |
| | | **Unvested awards** <br>**subject to** <br>**performance** <br>**conditions and** <br>**continued** <br>**employment** <br>**(LTIP, PSP)**<br>| **Unvested awards** <br>**subject to** <br>**continued** <br>**employment only** <br>**(DSBS, LTIP in** <br>**extended vesting** <br>**period and** <br>**buyout awards)**<br>| **Unvested** <br>**interests** <br>**(Sharesave)**<br>| **Total ordinary** <br>**shares subject** <br>**to outstanding** <br>**scheme interests**<br>| |
| <br>**Executive Directors** | <br>**Ordinary shares** <br>**held at**<br>**31 Dec 2025**<br>| | | | | <br>**Total of all** <br>**interests in** <br>**ordinary shares** <br>**at 31 Dec 2025**<br>|
| Tadeu Marroco<sup>2</sup> | 197613 | 651195 | 182997 | 1192 | 835384 | **1032997** |
| Soraya Benchikh<sup>3</sup> | 39204 | 78867 | 78445 | 746 | 158058 | **197262** |
| **Chair of the Board** |  |  |  |  |  |  |
| Luc Jobin<sup>4</sup> | 90236 |  |  |  | **—** | **90236** |
| **Non-Executive Directors** |  |  |  |  |  |  |
| Kandy Anand<sup>4</sup> | 7585 |  |  |  |  | **7585** |
| Karen Guerra | 23400 |  |  |  |  | **23400** |
| Holly Keller Koeppel<sup>5</sup> |  |  |  |  |  | **—** |
| Uta Kemmerich-Keil (appointed 17/02/2025) |  |  |  |  |  | **—** |
| Véronique Laury | 1650 |  |  |  |  | **1650** |
| Darrell Thomas<sup>4</sup> | 4600 |  |  |  |  | **4600** |
| Serpil Timuray | 3369 |  |  |  |  | **3369** |
| Matthew Wright (appointed 01/11/2025) |  |  |  |  |  | **—** |
| Murray Kessler (stepped down 17/02/2025)<sup>4, 6</sup> | 5000 |  |  |  |  | **5000** |

---

**Changes from 31 December 2025:**

–Tadeu Marroco: purchased 4 ordinary shares on 7 January 2026 and 3 ordinary shares on 4 February 2026 under the SIP. In addition, on 4 February 2026 Tadeu Marroco received 33 ordinary shares under the SIP

as a result of the quarterly dividend paid to shareholders and 364 ordinary shares, representing dividend equivalents due on outstanding DSBS awards.

–There were no changes in the interests of the Chair and the other Non-Executive Directors.

**Notes:**

1. On 25 March 2025, Tadeu Marroco received 20,325 shares following the vesting of his 2022 awards under the DSBS. On 1 May 2025, Tadeu Marroco exercised 624 options granted to him under the UK

Sharesave scheme. No other options were exercised by Directors in 2025.

2. Tadeu Marroco: ordinary shares held include 2,528 held by the trustees of the BAT Share Incentive Plan (SIP).

3. Soraya Benchikh: holdings are as at the date she stepped down from the Board (26 August 2025). Ordinary shares held include 112 held by the trustees of the BAT Share Incentive Plan (SIP). The 78,445 figure

includes the 2025 DSBS award and the buyout awards granted to Ms Benchikh on her appointment, as referred to at page 242 of the 2024 Annual Report.

4. American Depositary Shares (ADSs): each of the interests in ordinary shares held by Luc Jobin, Kandy Anand, Darrell Thomas and Murray Kessler consists of an equivalent number of BAT ADSs, each of which

represents one ordinary share in the Company.

5. Holly Keller Koeppel: at the date of this report, Holly Keller Koeppel, being a former director of Reynolds American Inc. and a participant in the Deferred Compensation Plan for Directors of Reynolds American

(DCP), holds Deferred Stock Units (DSUs) which were granted prior to becoming a Director of BAT. In accordance with an election made by Holly Keller Koeppel in December 2016, a proportion of her DSUs

representing her fees as a director of Reynolds American Inc. for 2017 are payable from January 2023 over a period of 10 years, with the remainder of her DSUs (representing her fees as a director of Reynolds

American Inc. in prior years) becoming payable following her cessation as a Director of BAT. Each DSU entitles the holder to receive a cash payment equal to the value of one BAT ADS. The number of DSUs

increases on each dividend date by reference to the value of dividends declared on the ADSs underlying the DSUs. Ms Koeppel currently holds 35,816 DSUs (2024: 33,906 DSUs).

6. Murray Kessler: holdings are as of the date of departure (17 February 2025).

**Directors and Management Board**

No Directors or Management Board Members own more than 1% of the ordinary shares in issue. At 5 February 2026, the Directors and Management Board

collectively held interests (or their calculated equivalents) under the Company share schemes of: 969,322 ordinary shares, 785,150restricted share units, 2,102,170

performance share units, 9,817 options over ordinary shares (options outstanding are exercisable between 1 May 2026 and 1 November 2029 at option

prices ranging from 1,927p to 2,472p, depending on the grant date) and 35,816 deferred share units. For further information on share base payments

(including share options), please refer to note 28in Part III - Item 18 Notes on the Accounts. See also Item 6.B - Compensation.

**Item 7 - Major shareholders and related party transactions**

**Item 7. A - Major shareholders**

**Security Ownership of Ordinary Shares**

As at 5 February 2026 there were 29,117 record holders of ordinary shares listed on the LSE (including Citibank as the depositary bank for the ADSs) and

2,167,870,213 of such ordinary shares outstanding. As at that date, to BAT's knowledge, 298 record holders, representing 0.02% of the ordinary shares listed

on the LSE, had a registered address in the U.S. As at 5 February 2026, there were 1,069 record holders of ordinary shares listed on the JSE (including PLC

Nominees (Proprietary) Limited as the nominee for the dematerialised ordinary shares listed on the JSE) and 141,768,549 of such ordinary shares

outstanding. As at such date, to BAT's knowledge, 63 record holders, representing 0.13% of the ordinary shares listed on the JSE had a registered address in

the U.S. As at 5 February 2026, based on information received from Citibank, there were 7,357 record holders of ADSs and 402,498,428 ADSs outstanding.

As at that date, based on information received from Citibank, 7,300 record holders, representing 99.99% of ADSs representing ordinary shares,

had a registered address in the U.S.

**Major Shareholders**

At 31 December 2025, the Company had received notification of the following interests in voting rights pursuant to section 5.1.2 of the Disclosure and Transparency

Rules (DTRs). Additional notifications of substantial interests received by the Company between 1 January and 5 February 2026 are set out in Note 3 below.

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | |
|:---|:---|:---|
| **Name** | **Number of** <br>**voting rights**<br>| **% of issued** <br>**voting rights**<sup>1</sup><br>|
| The Capital Group Companies, Inc.<sup>2, 3</sup> | 417273195 | 19.15 |
| Spring Mountain Investments Ltd. | 61410486 | 2.82 |
| BlackRock, Inc | 132891526 | 6.10 |
| Standard Bank Group Limited | 74103515 | 3.40 |

---

**Notes:**

1. The percentage of issued share capital as at 31 December 2025, excluding treasury shares.

2. Includes 83,462,006 ordinary shares represented by ADRs.

3. On 23 January 2026, The Capital Group Companies, Inc. notified the Company that, on 22 January 2026, its interest in the Company's ordinary share capital had decreased to a total of 410,903,888 voting rights,

representing 18.87% of the Company's issued share capital (excluding treasury shares) as at that date.

4. All shares held by the significant shareholders represent the Company's ordinary shares. These significant shareholders have no special voting rights compared with other holders of the Company's ordinary

shares.

**Significant Shareholding Disclosure**

The Company is aware of the following interests from filings by shareholders made under the U.S. Securities Exchange Act of 1934 as at the date of this

report:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Holder | Schedule 13G/13D Filing <br>Date<sup>1</sup><br>| Date of holding | Ordinary shares held | Percentage of ordinary share <br>capital held<sup>2</sup><br>|
| Portfolio Services Ltd<sup>3</sup> | 16 October 2025 | 14 October 2025 | 61410486 | 2.8% |
| Portfolio Services Ltd<sup>3</sup> | 16 May 2025 | 15 May 2025 | 115474398 | 5.3% |
| Portfolio Services Ltd<sup>3</sup> | 26 January 2024 | 31 December 2023 | 234328476 | 10.5% |
| Portfolio Services Ltd<sup>3</sup> | 8 December 2023 | 7 December 2023 | 225064318 | 10.1% |
| Portfolio Services Ltd<sup>3</sup> | 10 February 2023 | 31 December 2022 | 198285158 | 8.9% |
| BlackRock, Inc. | 17 October 2025 | 30 September 2025 | 143266873 | 6.5% |
| BlackRock, Inc. | 23 April 2025 | 31 March 2025 | 120528637 | 5.5% |
| BlackRock, Inc. | 22 October 2024 | 30 September 2024 | 147648482 | 6.7% |
| BlackRock, Inc. | 6 February 2024 | 31 December 2023 | 173760660 | 7.8% |
| BlackRock, Inc. | 31 January 2023 | 31 December 2022 | 172502866 | 7.7% |
| Capital International Investors, a division of <br>Capital Research and Management <br>Company<sup>4</sup> | 13 May 2025 | 31 March 2025 | 197450039 | 9.0% |
| Capital International Investors, a division of <br>Capital Research and Management <br>Company<sup>4</sup> | 14 February 2025 | 31 December 2024 | 151516865 | 6.9% |
| Capital International Investors, a division of <br>Capital Research and Management <br>Company<sup>4</sup> | 7 February 2024 | 29 December 2023 | 120859227 | 5.4% |
| Capital International Investors, a division of <br>Capital Research and Management <br>Company<sup>4</sup> | 13 February 2023 | 30 December 2022 | 115107720 | 5.1% |
| Capital Research Global Investors, a <br>division of Capital Research and <br>Management Company<sup>4</sup> | 13 August 2025 | 30 June 2025 | 192380424 | 8.8% |
| Capital Research Global Investors, a <br>division of Capital Research and <br>Management Company<sup>4</sup> | 13 February 2025 | 31 December 2024 | 155851331 | 7.1% |
| Capital Research Global Investors, a <br>division of Capital Research and <br>Management Company<sup>4</sup> | 7 February 2024 | 29 December 2023 | 134227673 | 6.0% |
| Capital Research Global Investors, a <br>division of Capital Research and <br>Management Company<sup>4</sup> | 13 February 2023 | 30 December 2022 | 126794516 | 5.7% |
| Standard Bank of South Africa Ltd<sup>5</sup> | 3 September 2025 | 2 September 2025 | 4647718 | 0.2% |
|  | 8 August 2025 | 26 August 2025 | 132926664 | 6.1% |

---

**Notes:**

1. In addition to the Schedule 13G and 13D filings made with the SEC, in accordance with the DTRs, shareholders must notify the Company if their shareholding reaches, exceeds or falls below 3% of total voting

rights and each 1% threshold thereafter. The notifications received by the Company during the past three years to the best of the Company's knowledge are set out in the notes below.

2. The percentage of issued share capital held is with reference to the number of ordinary shares held by the holder as at the date of the event triggering the relevant Schedule 13G filing. The percentage of the

Company's issue share capital shown excludes treasury shares.

3. Kenneth B. Dart is beneficial owner of all outstanding shares of Portfolio Services Ltd and Spring Mountain Investments Ltd. Spring Mountain Investments Ltd notified the Company on:

– 18 May 2023 that on 16 May 2023 it had a direct interest in 201,404,985 ordinary shares, representing 9.00% of the total voting rights at that date;

– 8 December 2023 that on 7 December 2023 it had a direct interest in 224,329,318 ordinary shares representing 10.03% of the total voting rights at that date;

– 18 December 2023 that on 15 December 2023 it had a direct interest in 231,975,495 ordinary shares representing 10.37% of the total voting rights at that date;

– 26 March 2025 that on 24 March 2025 it had a direct interest in 230,700,705 ordinary shares representing 10.47% of the total voting rights at that date;

– 10 April 2025 that on 8 April 2025 it had a direct interest in 220,113,676 ordinary shares representing 10.00% of the total voting rights at that date;

– 17 April 2025 that on 15 April 2025 it had a direct interest in 202,945,636 ordinary shares representing 9.22% of the total voting rights at that date;

– 22 April 2025 that on 17 April 2025 it had a direct interest in 195,879,636 ordinary shares representing 8.90% of the total voting rights at that date;

– 25 April 2025 that on 23 April 2025 it had a direct interest in 187,072,659 ordinary shares representing 8.50% of the total voting rights at that date;

– 2 May 2025 that on 30 April 2025 it had a direct interest in 174,497,951 ordinary shares representing 7.93% of the total voting rights at that date;

– 8 May 2025 that on 6 May 2025 it had a direct interest in 160,272,849 ordinary shares representing 7.29% of the total voting rights at that date;

– 9 May 2025 that on 7 May 2025 it had a direct interest in 153,351,011 ordinary shares representing 6.97% of the total voting rights at that date;

– 16 May 2025 that on 15 May 2025 it had a direct interest in 115,474,398 ordinary shares representing 5.25% of the total voting rights at that date;

– 29 September 2025 that on 25 September 2025 it had a direct interest in 108,966,148 ordinary shares representing 4.98% of the total voting rights at that date;

– 10 October 2025 that on 8 October 2025 it had a direct interest in 86,395,586 ordinary shares representing 3.95% of the total voting rights at that date; and

– 16 October 2025 that on 14 October 2025 it had a direct interest in 61,410,486 ordinary shares representing 2.81% of the total voting rights at that date.

4. The notifications regarding the holdings by The Capital Group Companies, Inc., listed below, indicate that Capital Research and Management Company is part of a chain of controlled undertakings with The

Capital Group Companies, Inc. The Capital Group Companies, Inc. notified the Company on:

– 11 May 2023 that on 10 May 2023 it had an indirect interest in 290,195,446 ordinary shares, representing 12.98% of the total voting rights at that date;

– 21 June 2024 that on 20 June 2024 it had an indirect interest in 289,142,364 ordinary shares, representing 13.01% of the total voting rights at that date;

– 10 July 2024 that on 8 July 2024 it had an indirect interest in ordinary shares of 287,970,670 ordinary; and financial instruments pursuant to DTR 5.3.1 R (1)(b) which refer to 246,755 voting rights,

representing 12.96% and 0.01%, respectively, of the total voting rights at that date;

– 31 July 2024 that on 30 July 2024 it had an indirect interest in 289,303,974 ordinary shares, representing 13.04% of the total voting rights at that date;

– 2 December 2024 that on 29 November 2024 it had an indirect interest in 310,426,805 ordinary shares, representing 14.04% of the total voting rights at that date;

– 15 January 2025 that on 14 January 2025 it had an indirect interest in 332,948,937 ordinary shares, representing 15.08% of the total voting rights at that date;

– 7 February 2025 that, on 6 February 2025, it had an indirect interest in 355,299,930 ordinary shares, representing 16.10% of the total voting rights at that date;

– 6 March 2025 that, on 5 March 2025, it had an indirect interest in 375,105,434 ordinary shares, representing 17.02% of the total voting rights at that date;

British American Tobacco p.l.c. Form 20-F 2025<br>

– 6 June 2025 that, on 5 June 2025, it had an indirect interest in 397,019,255 ordinary shares, representing 18.07% of the total voting rights at that date; and

– 10 July 2025 that, on 9 July 2025, it had an indirect interest in 417,273,195 ordinary shares, representing 19.01% of the total voting rights at that date.

5. The Schedule 13D filing by Standard Bank of South Africa Ltd, listed above, indicates that SBG Securities (Pty) Ltd is a subsidiary of the Standard Bank Group. Standard Bank Group Limited notified the

Company on 31 January 2025 that on 29 January 2025 it had a direct interest in 74,103,515 ordinary shares, representing 3.35% of the total voting rights at that date.

6. All shares held by the significant shareholders represent the Company's ordinary shares. These significant shareholders have no special voting rights compared with other holders of the Company's ordinary shares.

To the extent known by BAT, BAT is not directly or indirectly owned or controlled by another corporation, any foreign government or by any other natural

or legal person, severally or jointly. BAT is not aware of any arrangements, the operation of which may at a subsequent date result in a change of control of

the Group.

**Item 7. B - Related party transactions**

Please refer to note [30](#ia53e6ca54d894bde98684b8ab3a259a8_622) in Part III - Item 18 Notes on the Accounts for more details on related party transactions.

**Item 8 - Financial Statements**

**Item 8. A - Consolidated statements and other financial information**

Please refer to Part III - Item 18 - Financial Statements in the Notes on the Accounts for our consolidated financial statements and report of our independent

registered public accounting firm, including note [31](#ia53e6ca54d894bde98684b8ab3a259a8_625) in Part III - Item 18 Notes on the Accounts, and Item [3.D](#ia53e6ca54d894bde98684b8ab3a259a8_5548) (*Risk Factors-Legal, Regulatory and* 

*Compliance Risks*).

**Dividends and Dividend Policy**

The Group pays its dividends to shareholders over four quarterly interim dividends. Quarterly dividends provide shareholders with a more regular flow of

dividend income and allow the Company to spread its substantial dividend payments more evenly over the year, aligning better with the cash flow generation

of the Group and so enable the Company to fund the payments more efficiently. The Board seeks to reward shareholders with a progressive dividend, which

is topay dividends of 65% of long-term sustainable earnings calculated with reference to adjusted diluted earnings per share, as defined on page [46](#i71dd3cfa32dd46f092cff6b4620b47a0_511450), and

reconciled from earnings per share in note 11 in Part III - Item 18 Notes on the Accounts.

The quarterly dividends will be paid to shareholders registered on either the UK main register or the South Africa branch register and to ADS holders, each

on the applicable record dates.

Dividends are declared and payable in sterling except for those shareholders on the branch register in South Africa, where dividends are payable in rand, in

line with the requirements of the JSE. The equivalent dividends receivable by holders of ADSs in US dollars are calculated based on the exchange rate on the

applicable payment date.

**Item 9 - The Offer and listing** 

**Item 9. A - Offer and listing details**

**Share Prices and Listing**

**Stock Market Listings**

**Main Market – London Stock Exchange (LSE)** 

The primary market for BAT's ordinary shares is the LSE (Share Code: BATS; ISIN: GB0002875804). BAT's ordinary shares have been listed on the LSE

main market since 8 September 1998 and are a constituent element of the FTSE 100 Index.

**Secondary Listing – Johannesburg Stock Exchange (JSE Limited), South Africa** 

BAT's ordinary shares have a secondary listing and are traded in South African rand on the Main Board of the JSE in South Africa (Abbreviated name:

BATS; Trading code: BTI). BAT's ordinary shares have been listed on the JSE since 28 October 2008 and are aconstituent element of the JSE Top 40 Index.

**American Depositary Shares (ADSs) – New York Stock Exchange (NYSE)**

BAT ordinary shares trade in the form of BAT ADSs in the U.S. under the symbol BTI (CUSIP Number: 110448107). The BAT ADSs have been listed on

the NYSE since 25 July 2017 as a Sponsored Level III ADS programme for which Citibank, N.A. is the depositary (the 'Depositary') and transfer agent. Each

ADS represents one ordinary share. ADSs are evidenced by American Depositary Receipts (ADRs).

**Item 9. C - Markets**

Please refer to Item 9.A above.

**Item 10 - Additional information**

**Item 10. B - Memorandum and Articles of Association**

The Company is a public limited company incorporated under the name of British American Tobacco p.l.c. and is registered in England and Wales under

registered number 3407696. Under the UK Companies Act 2006 (the UK Companies Act), the Company's objects are unrestricted. The following

descriptions summarise certain provisions of the Company's current Articles of Association (the Articles) (as adopted by special resolution at the AGM on 19

April 2023), applicable English and Welsh law and the UK Companies Act. Please refer to Exhibit 1 for the Articles. Copies of the Articles are also available

on bat.com. The Articles may be altered or added to, or completely new articles may be adopted, by a special resolution of the shareholders of the Company,

subject to the provisions of the UK Companies Act.

British American Tobacco p.l.c. Form 20-F 2025<br>

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| |
|:---|
| Share capital – structure |
| **Ordinary shares** |
| –all of the Company's ordinary shares are fully paid  |
| –no further contribution of capital may be required by the Company from the holders of such shares |
| **Alteration of share capital – the Company by ordinary resolution may:** |
| –consolidate and divide all or any of its shares into shares of a larger nominal amount than its existing shares |
| –divide or sub-divide any of its shares into shares of a smaller nominal amount than its existing shares |
| –determine that, as between the shares resulting from such a sub-division, any of them may have any preference or advantage as compared with the others |
| **Alteration of share capital – the Company, subject to the provisions of the UK Companies Act, may:** |
| –reduce its share capital, its capital redemption reserve and any share premium account in any way |
| –purchase its own shares, including redeemable shares, and may hold such shares as treasury shares or cancel them |
| **Dividend rights** |
| –shareholders may, by ordinary resolution, declare dividends but not in excess of the amount recommended by the Directors |
| –the Directors may pay interim dividends out of distributable profits |
| –no dividend shall be paid otherwise than out of the profits available for distribution as specified under the provisions of the UK Companies Act |
| Share capital – structure continued |
| –the Directors may, with the authority of an ordinary resolution of the shareholders, pay scrip dividends or satisfy the payment of a dividend by the <br>distribution of specific assets <br>|
| –unclaimed dividends for a period of 12 years shall be forfeited and cease to be owed by the Company |
| –specific provisions enable the Directors to elect to pay dividends by bank or electronic transfer only |

---

---

| |
|:---|
| Share capital  |
| **Voting at general meetings** |
| –at a general meeting which has been convened as a hybrid meeting, on a poll, or otherwise by a show of hands, unless a poll is demanded  |
| –on a poll, every shareholder who is present in person or by proxy has one vote for every share held by the shareholder |
| –on a show of hands, every shareholder who is present in person has one vote regardless of the number of shares held by that shareholder |
| –every proxy appointed by a shareholder and present at a general meeting has one vote except that if the proxy has been duly appointed by more than one <br>shareholder entitled to vote on the resolution and is instructed by one or more of those shareholders to vote for the resolution and by one or more others to <br>vote against it, or is instructed by one or more of those shareholders to vote in one way and is given discretion as to how to vote by one or more others <br>(and wishes to use that discretion to vote in the other way), they have one vote for and one vote against the resolution<br>|
| –a shareholder (or their duly appointed proxy) entitled to more than one vote need not use all their votes or cast all the votes they use in the same way |
| –a poll may be demanded by any of the following:<br>–the Chair of the meeting; <br>–the majority of the Directors present at the meeting; <br>–not less than five shareholders having the right to vote at the meeting; <br>–a shareholder or shareholders representing not less than one-tenth of the total voting rights of all shareholders having the right to vote at the meeting <br>(excluding any voting rights attached to treasury shares); or <br>–a shareholder or shareholders holding shares which confer a right to vote on the resolution at the meeting being shares on which an aggregate sum has <br>been paid up equal to not less than one-tenth of the total sum paid up on all shares conferring that right (excluding any voting rights attached to treasury <br>shares)<br>|

---

---

| |
|:---|
| **Matters transacted at general meetings** |
| –ordinary resolutions can include resolutions for the appointment, reappointment and removal of Directors, the receiving of the Annual Report, the <br>declaration of final dividends, the appointment and reappointment of the external auditor, the authority for the Company to purchase its own shares and <br>the grant of authority to allot shares<br>|
| –an ordinary resolution is passed when a simple majority of the votes cast at a meeting at which there is a quorum vote in favour of the resolution |
| –special resolutions can include resolutions amending the Company's Articles and resolutions relating to certain matters concerning a winding-up of the <br>Company<br>|
| –a special resolution is passed when not less than three-quarters of the votes cast at a meeting at which there is a quorum vote in favour of the resolution |
| –quorum for a meeting of the Company is a minimum of two shareholders present in person or by proxy or by a duly authorised representative(s) of a <br>corporation which is a shareholder and entitled to vote<br>|
| –voting record date: the Company may specify a time not more than 48 hours before the time of the meeting (excluding any part of a day that is not a <br>working day) by which a person must be entered on the register of members in order to have the right to attend or vote at the meeting<br>|
| –postponement of a meeting: the Directors may postpone the time at which the meeting is held and/or change the place(s) of a meeting any number of <br>times before the meeting is held<br>|
| –form of general meetings: the Directors may decide in relation to any general meeting (including a postponed or adjourned meeting) whether it is to be <br>held as a physical meeting or a hybrid meeting, and may make such arrangements as they may decide in connection with the facilities for participation by <br>electronic means (but may not convene a purely electronic meeting)<br>|

---

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| |
|:---|
| Share capital – pre-emptive rights and new issues of shares |
| –holders of ordinary shares have no pre-emptive rights under the Articles – the ability of the Directors to cause the Company to issue shares, securities <br>convertible into shares or rights to shares, otherwise than pursuant to an employee share scheme, is restricted<br>|
| –under the UK Companies Act, the directors of a company are, with certain exceptions, unable to allot any equity securities without express authorisation, <br>which may be contained in a company's articles of association or given by its shareholders in a general meeting, but which in either event cannot last for <br>more than five years<br>|
| –under the UK Companies Act, a company may also not allot shares for cash (otherwise than pursuant to an employee share scheme) without first making <br>an offer to existing shareholders to allot such shares to them on the same or more favourable terms in proportion to their respective shareholdings, unless <br>this requirement is waived by a special resolution of the shareholders<br>|

---

---

| |
|:---|
| Restrictions on transfers of shares |
| –Directors may, in their absolute discretion, refuse to register the transfer of a share in certificated form which is not fully paid, provided that such a refusal <br>would not prevent dealings in shares in certificated form which are not fully paid from taking place on an open and proper basis<br>|
| –the Directors may also refuse to register a transfer of a share in certificated form (whether fully paid or not) unless the instrument of transfer:(a) is lodged, <br>duly stamped, and is deposited at the registered office of the Company or such other place as the Directors may appoint and is accompanied by a <br>certificate for the shares to which it relates and such other evidence as the Directors may reasonably require to show the right of the transferor to make the <br>transfer; (b) is in respect of only one class of share; and (c) is in favour of not more than four transferees<br>|
| –for uncertificated shares, transfers shall be registered only in accordance with the terms of the Uncertificated Securities Regulations 2001 so that <br>Directors may refuse to register a transfer which would require shares to be held jointly by more than four persons<br>|
| –if the Directors refuse to register a share transfer, they must give the transferee notice of this refusal as soon as practicable and in any event within two <br>months of the instrument of transfer being lodged with the Company<br>|

---

---

| |
|:---|
| Repurchase of shares |
| –subject to authorisation by shareholder resolution, the Company may purchase its own shares in accordance with the UK Companies Act |
| –any shares which have been bought back may be held as treasury shares or, if not so held, must be cancelled immediately upon completion of the <br>purchase, thereby reducing the amount of the Company's issued share capital<br>|

---

---

| |
|:---|
| Directors |
| **Appointment and retirement** |
| –a Board of Directors of not fewer than five Directors and not subject to any maximum (unless otherwise determined by ordinary resolution of <br>shareholders)<br>|
| –Directors and the Company (by ordinary resolution) may appoint a person who is willing to act as a Director |
| –all Directors must retire from office at each annual general meeting (AGM) and seek re-election, except any Director appointed by the Board after notice <br>of that AGM has been given and before the AGM has been held. All of the Directors of the Company will be subject to re-election at the forthcoming <br>AGM to be held on 15 April 2026 in accordance with the Articles<br>|
| –fees for Non-Executive Directors and the Chair are determined by the Directors but cannot currently exceed in aggregate an annual sum of £2,500,000, <br>unless determined otherwise by ordinary resolution of the shareholders. This is subject to the provision that any Director who holds any other office in the <br>Company (including for this purpose, the office of Chair of the Board), serves on any Committee of the Board, or performs services that the Directors <br>consider go beyond the ordinary duties of a Director may be paid such additional remuneration as the Directors may determine<br>|
| –the remuneration of the Executive Directors is determined by the Remuneration Committee, which comprises independent Non-Executive Directors |
| **Disclosure of interests** |
| –the Articles require disclosure, subject to certain limited exceptions, of Directors' interests in transactions that may result in a conflict of interest, <br>including those which may arise as a result of the Director's office or employment or persons connected with such Director, and identify procedures to <br>resolve such conflicts of interest<br>|
| **Meetings and voting** |
| –the quorum for a meeting of Directors is two Directors |
| –the Directors may delegate any of their powers to a person or a committee |
| –the Articles place a general prohibition on a Director voting at a Board meeting on any matter in which they have an interest other than by virtue of their <br>interest in shares in the Company<br>|
| –the Articles restrict a Director's ability to vote on any resolution concerning a matter in which such Director has a material interest, unless such Director's <br>interest arises only because the resolution relates to the giving of guarantees; the provision of indemnities; insurance proposals; retirement benefits; and <br>other specified transactions or arrangements with a company in which the Director may have an indirect interest<br>|
| **Borrowing and other powers** |
| –the Directors may exercise all the powers of the Company to borrow money and to mortgage or charge its undertaking, property, assets (present and <br>future) and uncalled capital <br>|
| –the Directors may also issue debentures, debenture stock and other securities |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| |
|:---|
| Additional disclosures |
| **Disclosure of ownership of shares** |
| –there are no provisions in the Articles whereby persons acquiring, holding or disposing of a certain percentage of the Company's ordinary shares are <br>required to make disclosure of their ownership percentage, although there are such requirements under statute and regulation<br>|
| **Director retirement** |
| –there is no requirement for a Director to retire on reaching any age |
| **Sinking funds** |
| –there is no sinking fund provision in the Articles applicable to the Company's ordinary shares |
| **Limitations on voting and shareholding** |
| –there are no limitations under the Articles restricting the right of non-resident or foreign owners to hold or vote in relation to ordinary shares <br>in the Company<br>|
| **Distribution of assets on a winding up** |
| –if the Company is wound up, the liquidator may, with the sanction of a special resolution and any other sanction required by law, divide among the <br>members in specie the whole or any part of the assets of the Company and may, for that purpose, value any assets and determine how the division shall <br>be carried out as between the members or different classes of members <br>–the liquidator may, with the like sanction, vest the whole or any part of the assets in trustees upon such trusts for the benefit of the members as he may with the like <br>sanction determine, but no member shall be compelled to accept any assets upon which there is aliability<br>|
| **Anti-takeover devices and change of control** |
| –there are no provisions in the Articles that would have the effect of delaying, deferring or preventing a takeover, or change of control, of the Company <br>–under English law, the Company's Directors have a fiduciary duty to take only those actions that are in the interests of the Company and any anti-<br>takeover devices employed by the Directors in the future, if any, must accordingly be in the interests of the Company<br>–the Company is also subject to the City Code on Takeovers and Mergers (the "City Code"), which governs the conduct of mergers andtakeovers in the <br>UK. Any takeover of the Company would have to be in accordance with the City Code<br>|

---

**Item 10. C - Material contracts**

**The Master Settlement Agreement & State Settlement Agreements**

In 1998, the major U.S. cigarette manufacturers (including R.J. Reynolds Tobacco Company, Lorillard and Brown & Williamson, businesses which are now

part of Reynolds American) entered into the Master Settlement Agreement (MSA) with attorneys general representing most U.S. states and territories. The

MSA imposes a perpetual stream of future payment obligations on the major U.S. cigarette manufacturers. The amounts of money that the participating

manufacturers are required to annually contribute are based upon, among other things, the volume of cigarettes sold and market share (based on cigarette

shipments in that year). Since 1998, R.J. Reynolds Tobacco Company has entered into a number of settlement agreements with various other tobacco

manufacturers, various states, the District of Columbia and the Puerto Rico relating to Non-Participating Manufacturer (NPM) Adjustment claims.

During 2012, R.J. Reynolds Tobacco Company, various other tobacco manufacturers, 17 states, the District of Columbia and Puerto Rico reached a final

agreement related to Reynolds American's 2003 MSA activities, and three more states joined the agreement in 2013. Under this agreement, R.J. Reynolds

Tobacco Company has received credits of more than US$1 billion in respect of its NPM Adjustment claims related to the period from 2003 to 2012. These

credits have been applied against the company's MSA payments over a period of five years from 2013, subject to, and dependent upon, meeting the various

ongoing performance obligations. During 2014, two additional states agreed to settle NPM disputes related to claims for the period 2003 to 2012. R.J. Reynolds

Tobacco Company received US$170 million in credits, which have been applied over a five-year period from 2014. During 2015, another state agreed to settle

NPM disputes related to claims for the period 2004 to 2014. R.J. Reynolds Tobacco Company received US$285 million in credits, which have been applied

over a four-year period from 2016. During 2016, no additional states agreed to settle NPM disputes. During 2017, two more states agreed to settle NPM

disputes related to claims for the period 2004 to 2014. R.J. Reynolds Tobacco Company received US$61 million in credits, which have been applied over a

five-year period from 2017. During 2018, nine more states agreed to settle NPM disputes related to claims for the period 2004 to 2019, with an option through

2022, subject to certain conditions. R.J. Reynolds Tobacco Company received US$182 million in credits for settled periods through 2017, which have been

applied over a five-year period from 2018. Also in 2018, a 10th additional state agreed to settle NPM disputes related to claims for the period 2004 to 2024,

subject to certain conditions. R.J. Reynolds Tobacco Company received US$205 million in credits for settled periods through 2017, which have been applied

over a five-year period from 2019. In the first quarter of 2020, certain conditions set forth in the 2018 agreements were met for those 10 states. In addition, in

August 2020, 24 states, the District of Columbia and Puerto Rico agreed to settle NPM disputes related to claims for the period 2018 to 2022. In 2022, an

additional state settled NPM disputes related to claims for the period 2005 to 2028. It is estimated that R.J. Reynolds Tobacco Company will receive US$130

million in credits for settled periods through 2018, which will be applied over a five-year period from 2022. In 2023, an additional state settled NPM disputes

related to claims for the period 2005 to 2029. It is estimated that R.J. Reynolds Tobacco Company will receive a credit of US$29 million for settled periods

through 2018, which will be applied over a five-year period from 2024. In the first quarter of 2024, an additional state settled NPM disputes related to claims

for the period 2005 to 2031. It is estimated that R.J. Reynolds Tobacco Company will receive a credit of US$11 million for settled periods through 2018, which

will be applied over a five-year period from 2024. In the third quarter of 2024, an additional state settled NPM disputes related to claims for the period 2005 to

2011. It is estimated that R.J. Reynolds Tobacco Company will receive a credit of US$69 million for settled periods through 2011, which will be applied over a

five-year period from 2026. In the second quarter of 2025, an additional state settled NPM disputes related to claims for the period 2005 through 2031. It is

estimated that R.J. Reynolds Tobacco Company will receive a credit of US$99 million for settled periods through 2019, which will be applied over a five-year

period from 2025. In the fourth quarter of 2025, 39 states agreed to settle NPM disputes related to claims for the period 2025 through 2027. Credits in respect

of future years' payments and the NPM Adjustment claims would be accounted for in the applicable year and will not be treated as adjusting items. Only

credits in respect of prior year payments are included as adjusting items.

The BAT Group is subject to substantial payment obligations under the MSA and the state settlement agreements with the states of Mississippi, Florida, Texas

and Minnesota (such settlement agreements, collectively "State Settlement Agreements"). Reynolds American Inc.'s operating subsidiaries' expenses and

payments under the MSA and the State Settlement Agreements for 2025 amounted to US$2,037 million in respect of settlement expenses and US$2,140

million in respect of settlement cash payments; for 2024 amounted to US$2,160 million in respect of settlement expenses and US$2,535 million in respect of

settlement cash payments; for 2023 amounted to US$2,516 million in respect of settlement expenses and US$2,874 million in respect of settlement cash

payments; for 2022 amounted to US$2,951 million in respect of settlement expenses and US$3,129 million in respect of settlement cash payments; for 2021

amounted to US$3,420 million in respect of settlement expenses and US$3,744 million in respect of settlement cash payments; for 2020 amounted to

US$3,572 million in respect of settlement expenses and US$2,848 million in respect of settlement cash payments; and for 2019 amounted to US$2,762 million

in respect of settlement expenses and US$2,918 million in respect of settlement cash payments.

R.J. Reynolds Tobacco Company divested certain brands to Imperial Tobacco Group (ITG) in 2015. In 2020, R.J. Reynolds Tobacco Company recognised

additional expenses, included above, under the State Settlement Agreements in the states of Mississippi, Florida, Texas and Minnesota related to these divested

British American Tobacco p.l.c. Form 20-F 2025<br>

brands. R.J. Reynolds Tobacco Company recognised US$241 million of expense for payment obligations to the state of Florida for the ITG acquired brands from

the date of divestiture, 12 June 2015, as a result of an unfavourable judgment. In addition, R.J. Reynolds Tobacco Company recognised US$264 million related to

the resolution of claims against it in the states of Texas, Minnesota and Mississippi for payment obligations to those states for the ITG acquired brands from the

date of divestiture. R.J. Reynolds Tobacco Company settled certain related claims with Phillip Morris USA under the State Settlement Agreements in the states of

Mississippi, Texas and Minnesota for US$8 million. In June 2022, R.J. Reynolds Tobacco Company settled PM USA's claims relating to the calculation of the

base-year net operating profits for the ITG acquired brands for US$37 million. In 2025, R.J. Reynolds Tobacco Company recognised US$44 million in additional

expenses related to a settlement with the State of Mississippi resolving prior operating profit disputes. In December 2025, the Delaware Supreme Court affirmed a

lower court's judgment awarding Reynolds American and R.J. Reynolds Tobacco Company approximately US$370 million for prior settlement payments with

interest. No amounts associated with this judgment have been recognised at this time and none will be recognised until receipt of the judgment award becomes

virtually certain.

**Fourth Amended and Restated Court-Appointed Mediator's and Monitor's CCAA Plan of Compromise and Arrangement**

On 1 March 2019, a judgment was rendered by the Québec Court of Appeal in two Québec class actions awarding damages and interest against Imperial Tobacco

Canada Limited (Imperial) and the Canadian subsidiaries of Philip Morris International Inc. (PMI) and Japan Tobacco International (JTI) in the amount of

CAD$15.6 billion (£8.7 billion), most of which was on a joint and several basis, of which Imperial's share was CAD$10.4 billion (£5.8 billion) (the Quebec Case).

At that time, there were numerous other proceedings and claims that were pending in a number of Canadian jurisdictions against the tobacco industry. These

proceedings included claims for economic losses arising from the treatment of smoking and health-related diseases (such as medical recoupment claims brought by

the various provincial governments) and numerous other claims for personal injury and economic losses relating to smoking (both class actions and individual

cases), seeking to recover hundreds of billions of Canadian dollars.

JTI-MacDonald Corp ((JTIM) a subsidiary of JTI and a co-defendant in the cases) filed for creditor protection under the Companies' Creditors Arrangement Act

(the CCAA) on 8 March 2019. On 12 March 2019, Imperial and Imperial Tobacco Company Limited (together with Imperial, ITCAN) filed for creditor protection

under the CCAA. In seeking protection under the CCAA, ITCAN was looking to resolve not only the Quebec Case but also all other tobacco litigation in Canada

under an efficient and court supervised process, while continuing to trade in the normal course. On 22 March 2019, Rothmans, Benson & Hedges Inc. ((RBH) a

subsidiary of PMI) also filed for CCAA protection. The need for a mediation process to resolve all the outstanding litigation across the country was recognised. The

Hon. Warren Winkler (the retired Chief Justice of Ontario) was appointed as a mediator in all three filings to ensure that the disparate creditor groups and interests

could be managed in an efficient and confidential manner, leading to a comprehensive and industry-wide resolution.

On 6 March 2025, the Ontario Superior Court of Justice (the Court) sanctioned the court-appointed mediator's and monitor's plan of compromise and arrangement

for ITCAN to resolve all outstanding tobacco litigation in Canada. Substantially similar plans were sanctioned by the Court for RBH and JTIM (collectively, the

Approved Plans). The Approved Plans (as they were amended on 27 August 2025) were implemented on 29 August 2025 and resolve all Canadian tobacco

litigation and provide a full and comprehensive release to the defendants and their related companies, including ITCAN, BAT p.l.c. and all related Group

companies for all past, present and future tobacco claims in Canada.

Under the Approved Plans, ITCAN, RBH and JTIM (collectively, the Companies) are required to pay an aggregate settlement amount of CAD$32.5 billion

(approximately £17.6 billion). This amount is to be funded by:

–an upfront payment equal to all the Companies' cash and cash equivalents that was on hand as of 31 July 2025 (including investments held at fair value) plus

certain court deposits (subject to an aggregate industry holdback of CAD$750 million (£407 million) allocated in March 2025 to RBH) plus 85% of any cash tax

refunds that may be received by the Companies on account of the upfront payments; and

–annual payments based on a percentage (initially 85%, reducing over time) of each of the Companies' net income after taxes, based on amounts generated from

all sources, excluding New Categories, until the aggregate settlement amount is paid.

By the end of 2025, ITCAN had paid CAD$5.5 billion (£3.0 billion) in respect of its upfront payment obligation, which included an escrow payment made

between December 2015 and June 2017 of CAD$758 million (£411 million) and paymentsduring the second half of 2025 of CAD$4.8 billion (£2.6 billion).

In addition, ITCAN's payment obligation based on the period from 1 August 2025 to 31 December 2025 is currently estimated to amount to CAD$156

million (approximately£85 million) and will be due on 30 July 2026.

**Other Agreements**

**Settlement Agreement between Nicoventures Trading Limited and Philip Morris Products S.A.** 

On 1 February 2024, Nicoventures Trading Limited, an indirect, wholly-owned subsidiary of British American Tobacco p.l.c., entered into a settlement agreement

with Philip Morris Products S.A., an indirect, wholly-owned subsidiary of Philip Morris International Inc. (the Settlement Agreement).

Pursuant to this Settlement Agreement, among other things, both parties have agreed to take all actions, as necessary, to dismiss with prejudice, subject to certain limited

exceptions, certain pending legal proceedings between the parties and their respective affiliates concerning certain Vapour products and Heated Products (HP)

(including devices and consumables) without admission of liability, and to fully and finally discharge without admission of liability any injunctions granted to the parties

and their respective affiliates in such proceedings. The parties have also agreed to a mutual release of presently known and past, present and future claims arising out of or

relating to, among other things, such proceedings, the infringement of the patents at issue in the proceedings and certain intellectual property rights relating to certain

products existing on or before a specified date.

Additionally, the parties have agreed to covenants not to sue, on a perpetual, royalty-bearing or royalty-free basis, as the case may be, in respect of patents

associated with certain existing or changed Vapour or HP products. The parties have also agreed to covenants not to sue on a perpetual, royalty-free basis in

respect of, among other things, the manufacture of products, accessories, replacement parts and upgrade parts, or their respective components, and research

and development of such products, accessories, replacement parts, upgrade parts and components. The Settlement Agreement is for a term of eight years

from 1 February 2024 and is substantially worldwide in scope.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Significant agreements with Change of Control Provisions**

---

| | |
|:---|:---|
| Nature of agreement | Key provisions |
| The revolving credit facilities agreement, effective 6 November 2025, <br>entered into between the Company, B.A.T. International Finance p.l.c., <br>B.A.T. Netherlands Finance B.V. and B.A.T Capital Corporation (as <br>borrowers and, in the case of the Company, as a guarantor) and HSBC <br>Bank plc (as agent) and certain financial institutions (as lenders), pursuant <br>to which the lenders have agreed to make available to the borrowers <br>£5.0 billion for general corporate purposes (the Facility).<br>| –should a borrower (other than the Company) cease to be a direct or indirect <br>subsidiary of the Company, such borrower shall immediately repay any <br>outstanding advances made to it and shall cease to be a borrower under the <br>Facility; and<br>–where there is a change of control in respect of the Company, the lenders <br>can require all amounts outstanding under the Facility to be repaid.<br>|
| During 2025, the Group arranged, extended and/or renewed short-term <br>bilateral facilities with core relationship banks for atotal amount of £2.7<br>billion. B.A.T. International Finance p.l.c. isthe borrower under these <br>facilities and the Company is the guarantor. As at 31 December 2025, nil<br>was drawn onashort-term basis.<br>| –should the borrower cease to be a direct or indirect subsidiary of the <br>Company, the borrower shall immediately repay any outstanding advances <br>made to it under these facilities; and<br>–where there is a change of control in respect of the Company, the lenders <br>can require all amounts outstanding under these facilities to be repaid.<br>|
| On 25 July 2017, the Company acceded as a guarantor under the indenture <br>of its indirect, wholly-owned subsidiary Reynolds American Inc. The <br>securities issued under the indenture include approximately US$4.6 billion <br>aggregate principal amount of unsecured Reynolds American Inc. debt <br>securities.<br>| –with respect to each series of debt securities issued under the indenture, <br>upon a change of control event, combined with a credit ratings downgrade <br>of the series to below investment-grade level (such downgrade occurring on <br>any date from the date of the public notice of an arrangement that could <br>result in a change of control event until the end of the 60-day period <br>following public notice of the occurrence of a change of control event), <br>Reynolds American Inc. is obligated to make an offer to repurchase all debt <br>securities from each holder of debt securities. As a guarantor under the <br>indenture, the Company guarantees such payments.<br>|
| Rules for the awards under the long-term incentive plans 2007 and 2016 <br>("LTIPs"), Performance Share Plan ("PSP"), Restricted Share Plan <br>("RSP"), 2019 Deferred Annual Share Bonus Scheme ("DSBS") and <br>2016 Sharesave Scheme ("Sharesave").<br>| –in the event of a change of control of the Company as a result of a takeover, <br>reconstruction or winding-up of the Company (not being an internal <br>reorganisation), LTIP, PSP, RSP, DSBS and Sharesave awards will vest <br>(and in the case of an option, become exercisable for a limited period) in <br>accordance with the applicable plan rules. The LTIP and PSP awards will <br>vest based on the period of time that has elapsed during the relevant <br>performance period(s) and the achievement of the performance conditions <br>measured at the end of the most recent quarter or (in the case of LTIPs <br>granted under the 2007 plan) on the date the awards vests by the <br>Remuneration Committee using such information it considers to be <br>appropriate. The RSP awards will vest based on the time elapsed since the <br>grant date of the award, the DSBS awards will vest in full and Sharesave <br>awards will vest to the extent of each participant's savings at exercise; and <br>–the rules of the LTIPs, PSP, RSP, DSBS and Sharesave allow (as an <br>alternative to early release) participants, if permitted, to exchange their <br>existing awards for new awards of shares in the acquiring company on a <br>comparable basis.<br>|

---

**Item 10. D - Exchange Controls**

There are currently no UK foreign exchange controls or restrictions on remittance of dividends on the ordinary shares other than restrictions

applicable to certain countries and persons subject to UK economic sanctions.

**Item 10. E - Taxation**

**Shareholder Taxation Information**

The following discussion summarises material U.S. federal income tax consequences and UK taxation consequences to U.S. holders of owning and disposing

of ordinary shares or ADSs, this information is accurate as at 9 February 2026. This discussion does not address any tax consequences arising under the laws

of any state, local or foreign jurisdiction or under any U.S. federal laws other than those pertaining to income tax. This discussion is based upon the U.S.

Internal Revenue Code of 1986 (the 'U.S. Tax Code'), the Treasury regulations promulgated under the U.S. Tax Code and court and administrative rulings

and decisions, all as in effect on the date hereof. These laws may change, possibly retroactively, and any change could affect the accuracy of the statements

and conclusions set forth in this discussion.

This discussion addresses only those U.S. holders of ordinary shares or ADSs who hold such equity interests as capital assets within the meaning of Section

1221 of the U.S. Tax Code. Further, this discussion does not address all aspects of U.S. federal income taxation that may be relevant to U.S. holders in light

of their particular circumstances or that may be applicable to them if they are subject to special treatment under the U.S. federal income tax laws, including,

without limitation:

–a bank or other financial institution;

–a tax-exempt organisation;

–an S corporation or other pass-through entity and an investor therein;

–an insurance company;

–a mutual fund;

–a regulated investment company or real estate investment trust;

British American Tobacco p.l.c. Form 20-F 2025<br>

–a dealer or broker in stocks and securities, or currencies;

–a trader in securities that elects mark-to-market treatment;

–a U.S. holder subject to the alternative minimum tax provisions of the U.S. Tax Code;

–a U.S. holder that received ordinary shares or ADSs through the exercise of an employee stock option, pursuant to a tax qualified retirement plan or

otherwise as compensation;

–a U.S. holder that is a tax-qualified retirement plan or a participant or a beneficiary under such a plan;

–a person that is not a U.S. holder (as defined below);

–a person that has a functional currency other than the US dollar;

–a person required to recognise any item of gross income as a result of such income being recognised on an applicable financial statement;

–a U.S. holder of ordinary shares or ADSs that holds such equity interest as part of a hedge, straddle, constructive sale, conversion or other integrated

transaction;

–a U.S. holder that owns (directly, indirectly or constructively) 10% or more of ordinary shares or ADSs by vote or by value; or

–a U.S. expatriate.

The determination of the actual tax consequences to a U.S. holder will depend on the U.S. holder's specific situation. U.S. holders of ordinary shares or

ADSs should consult their own tax advisers as to the tax consequences of owning and disposing of ordinary shares or ADSs, in each case, including the

applicability and effect of the alternative minimum tax and any state, local, foreign or other tax laws and of changes in those laws.

For purposes of this discussion, the term U.S. holder means a beneficial owner of ordinary shares or ADSs (as the case may be) that:

–is for U.S. federal income tax purposes: (i) an individual citizen or resident of the United States; (ii) a corporation, including any entity treated as a

corporation for U.S. federal income tax purposes, created or organised in or under the laws of the United States, any state thereof or the District of

Columbia; (iii) a trust if a U.S. court is able to exercise primary supervision over the trust's administration and one or more U.S. persons are authorised to

control all substantial decisions of the trust or it has a valid election in effect under applicable Treasury regulations to be treated as a U.S. person; or (iv) an

estate that is subject to U.S. federal income tax on its income regardless of its source; and

–is not resident in the UK for UK tax purposes.

The U.S. federal income tax consequences to a partner in an entity or arrangement treated as a partnership for U.S. federal income tax purposes that holds

ordinary shares or ADSs generally will depend on the status of the partner and the activities of the partnership. Partners in a partnership holding any such

equity interest should consult their own tax advisers.

**Material U.S. Federal Income Tax Consequences Relating to the Ownership and Disposition of Ordinary Shares or ADSs** 

The following is a discussion of the material U.S. federal income tax consequences of the ownership and disposition by U.S. holders of ordinary shares or

ADSs. This discussion assumes that BAT is not, and will not become, a passive foreign investment company for U.S. federal income tax purposes, as

described below.

**ADSs** 

A U.S. holder of ADSs, for U.S. federal income tax purposes, generally will be treated as the owner of the underlying ordinary shares that are represented by

such ADSs. Accordingly, deposits or withdrawals of ordinary shares for or from ADSs will not be subject to U.S. federal income tax.

**Taxation of Dividends**

The gross amount of distributions on the ordinary shares or ADSs will be taxable as dividends to the extent paid out of BAT's current or accumulated

earnings and profits, as determined under U.S. federal income tax principles. Such income will be includable in a U.S. holder's gross income as ordinary

income on the day actually or constructively received by the U.S. holder. Such dividends will be treated as foreign source income and will not be eligible for

the dividends received deduction allowed to corporations under the U.S. Tax Code.

With respect to non-corporate U.S. investors, certain dividends received from a qualified foreign corporation may be subject to reduced rates of taxation. A

qualified foreign corporation includes a foreign corporation that is eligible for the benefits of a comprehensive income tax treaty with the United States that

the Treasury determines to be satisfactory for these purposes and that includes an exchange of information provision. The Treasury has determined that the

treaty between the United States and the United Kingdom meets these requirements, and BAT believes that it is eligible for the benefits of the treaty.

However, non-corporate holders that do not meet a minimum holding period requirement during which they are not protected from the risk of loss or that

elect to treat the dividend income as 'investment income' pursuant to Section 163(d)(4) of the U.S. Tax Code will not be eligible for the reduced rates of

taxation. In addition, the rate reduction will not apply to dividends if the recipient of a dividend is obligated to make related payments with respect to

positions in substantially similar or related property. This disallowance applies even if the minimum holding period has been met. U.S. holders should consult

their own tax advisers regarding the application of these rules to their particular circumstances.

The amount of any dividend paid by BAT in sterling (including any such amount in respect of ADSs that is converted into US dollars by the depositary bank)

will equal the US dollar value of the sterling actually or constructively received, calculated by reference to the exchange rate in effect on the date the dividend

is so received by the U.S. holder, regardless of whether the sterling are converted into US dollars. If the sterling received as a dividend are converted into US

dollars on the date received, the U.S. holder generally will not be required to recognise foreign currency exchange gain or loss in respect of the dividend

income. If the sterling received as a dividend are not converted into US dollars on the date of receipt, the U.S. holder will have a basis in sterling equal to

their US dollar value on the date of receipt. Any gain or loss realised on a subsequent conversion or other disposition of sterling will be treated as U.S. source

ordinary income or loss. U.S. holders of ADSs should consult their own tax advisers regarding the application of these rules to the amount of any dividend

paid by BAT in sterling that is converted into US dollars by the depositary bank.

To the extent that the amount of any distribution exceeds BAT's current and accumulated earnings and profits for a taxable year, as determined under U.S.

federal income tax principles, the distribution will first be treated as a tax-free return of capital, causing a reduction in the U.S. holder's adjusted basis of the

ordinary shares or ADSs, and to the extent the amount of the distribution exceeds the U.S. holder's tax basis, the excess will be taxed as capital gain

recognised on a sale or exchange, as described below. BAT does not expect to determine earnings and profits in accordance with U.S. federal income tax

principles. Therefore, notwithstanding the foregoing, U.S. holders should expect that distributions generally will be reported as dividend income for U.S.

information reporting purposes.

Distributions by BAT of additional ordinary shares (which may be distributed by the depositary bank to a holder of ADSs in the form of ADSs) to a U.S.

holder that is made as part of a pro rata distribution to all holders of ordinary shares and ADSs in respect of their ordinary shares or ADSs, and for which

there is no option to receive other property (not including ADSs), generally will not be subject to U.S. federal income tax. The basis of any new ordinary

shares (or ADSs representing new ordinary shares) so received will be determined by allocating the U.S. holder's basis in the previously held ordinary shares

or ADSs between the previously held ordinary shares or ADSs and the new ordinary shares or ADSs, based on their relative fair market values on the date of

distribution.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Passive foreign investment company** 

A passive foreign investment company ("PFIC") is any foreign corporation if, after the application of certain 'look-through' rules: (1) at least 75% of its

gross income is 'passive income' as that term is defined in the relevant provisions of the U.S. Tax Code; or (2) at least 50% of the average value of its assets

produce 'passive income' or are held for the production of 'passive income.' The determination as to PFIC status is made annually.

BAT does not believe that it is, for U.S. federal income tax purposes, a PFIC, and BAT expects to operate in such a manner so as not to become a PFIC. If,

however, BAT is or becomes a PFIC, U.S. holders could be subject to additional U.S. federal income taxes on gain recognised with respect to the ordinary

shares or ADSs and on certain distributions, plus an interest charge on certain taxes treated as having been deferred under the PFIC rules. Non-corporate U.S.

holders will not be eligible for reduced rates of taxation on any dividends received from BAT if it is a PFIC in the taxable year in which such dividends are

paid or in the preceding taxable year. BAT's U.S. counsel expresses no opinion with respect to BAT's PFIC status.

**Taxation of capital gains** 

Upon a sale, exchange or other taxable disposition of ordinary shares or ADSs, a U.S. holder will generally recognise capital gain or loss for U.S. federal

income tax purposes in an amount equal to the difference between the US dollar value of the amount realised on the disposition and the U.S. holder's

adjusted tax basis in the ordinary shares or ADSs as determined in US dollars. Such gain or loss generally will be U.S. source gain or loss, and will be long-

term capital gain or loss if the U.S. holder has held the ordinary shares or ADSs for more than one year. Certain non-corporate U.S. holders may be eligible

for preferential rates of U.S. federal income tax in respect of net long-term capital gains. The deductibility of capital losses is subject to limitations.

The amount realised on a sale, exchange or other taxable disposition of ordinary shares for an amount in foreign currency will be the US dollar value of that

amount on the date of sale or disposition. On the settlement date, the U.S. holder will recognise U.S. source foreign currency exchange gain or loss (taxable

as ordinary income or loss) equal to the difference (if any) between the US dollar value of the amount received based on the exchange rates in effect on the

date of sale, exchange or other disposition and the settlement date. However, in the case of ordinary shares traded on an established securities market that are

sold by a cash-basis U.S. holder (or an accrual-basis U.S. holder that so elects), the amount realised will be based on the exchange rate in effect on the

settlement date for the sale, and no foreign currency exchange gain or loss will be recognised at that time.

A U.S. holder's tax basis in ordinary shares or ADSs will generally equal the US dollar cost of the ordinary shares or ADSs. The US dollar cost of ordinary

shares purchased with foreign currency will generally be the US dollar value of the purchase price on the date of purchase, or the settlement date for the

purchase in the case of ordinary shares traded on an established securities market that are purchased by a cash-basis U.S. holder (or an accrual-basis U.S.

holder that so elects).

**Information with respect to foreign financial assets** 

Individuals and certain entities that own 'specified foreign financial assets' with an aggregate value in excess of US$50,000 are generally required to file

information reports with respect to such assets with their U.S. federal income tax returns. Depending on the individual's circumstances, higher threshold

amounts may apply. Specified foreign financial assets include any financial accounts maintained by foreign financial institutions, as well as any of the

following, but only if they are not held in accounts maintained by financial institutions: (1) stocks and securities issued by non-U.S. persons; (2) financial

instruments and contracts held for investment that have non-U.S. issuers or counterparties; and (3) interests in non-U.S. entities. If a U.S. holder is subject to

this information reporting regime, the failure to file information reports may subject the U.S. holder to penalties. U.S. holders are urged to consult their own

tax advisers regarding their obligations to file information reports with respect to ordinary shares or ADSs.

**Medicare net investment tax** 

Certain persons who are individuals (other than non-resident aliens), estates or trusts are required to pay an additional 3.8% tax on the lesser of (1) their 'net

investment income' (in the case of individuals) or 'undistributed net investment income' (in the case of estates and trusts) (which includes dividend income in

respect of, and gain recognised on the disposition of, ordinary shares or ADSs) for the relevant taxable year; and (2) the excess of their modified adjusted

gross income (in the case of individuals) or adjusted gross income (in the case of estates and trusts) for the taxable year over specified dollar amounts. U.S.

holders are urged to consult their tax advisers regarding the applicability of this provision to their ownership of ordinary shares or ADSs.

**Credits or deductions for UK taxes** 

As indicated under 'Material UK tax consequences' below, dividends in respect of, and gains on the disposition of, ordinary shares or ADSs may be subject

to UK taxation in certain circumstances. A U.S. holder may be eligible to claim a credit or deduction in respect of UK taxes attributable to such income

or gain for purposes of computing the U.S. holder's U.S. federal income tax liability, subject to certain limitations. The U.S. foreign tax credit rules are

complex, and U.S. holders should consult their own tax advisers regarding the availability of U.S. foreign tax credits and the application of the U.S. foreign

tax credit rules to their particular situation.

**Information reporting and backup withholding** 

Information reporting and backup withholding may apply to dividend payments and proceeds from the sale, exchange or other taxable disposition of ordinary

shares or ADSs. Backup withholding will not apply, however, to a U.S. holder that: (1) furnishes a correct taxpayer identification number (TIN), certifies that

such holder is not subject to backup withholding on Internal Revenue Service Form W-9 (or appropriate successor form) and otherwise complies with all

applicable requirements of the backup withholding rules; or (2) provides proof that such holder is otherwise exempt from backup withholding. Backup

withholding is not an additional tax, and any amounts withheld under the backup withholding rules may be refunded or credited against a holder's U.S.

federal income tax liability, if any, provided that such holder furnishes the required information to the Internal Revenue Service in a timely manner. The

Internal Revenue Service may impose a penalty upon any taxpayer that fails to provide the correct TIN.

**This summary of material U.S. federal income tax consequences is not tax advice. The determination of the actual tax consequences for a U.S.** 

**holder will depend on the U.S. holder's specific situation. U.S. holders of ordinary shares or ADSs, in each case, should consult their own tax** 

**advisers as to the tax consequences of owning and disposing of ordinary shares or ADSs, including the applicability and effect of the alternative** 

**minimum tax and any state, local, foreign or other tax laws and of changes in those laws.** 

**Material UK Tax Consequences**

The following paragraphs summarise material aspects of the UK tax treatment of U.S. holders of ordinary shares or ADSs and do not purport to be either a

complete analysis of all tax considerations relating to holding ordinary shares or ADSs or an analysis of the tax position of BAT. They are based on current

UK legislation and what is understood to be current HMRC practice, both of which are subject to change, possibly with retrospective effect.

The comments are intended as a general guide and (otherwise than where expressly stated to the contrary) apply only to U.S. holders of ordinary shares or

ADSs (other than under a personal equity plan or individual savings account) and who are the absolute beneficial owners of such shares. These comments do

not deal with certain types of shareholders such as charities, dealers in securities, persons holding or acquiring shares in the course of a trade, persons who

have or could be treated for tax purposes as having acquired their ordinary shares or ADSs by reason of their employment, collective investment schemes,

persons subject to UK tax on the remittance basis and insurance companies. You are encouraged to consult an appropriate independent professional tax

adviser with respect to your tax position.

**Tax on chargeable gains as a result of disposals of ordinary shares or ADSs** 

Subject to the below, U.S. holders will not generally be subject to UK tax on chargeable gains on a disposal of ordinary shares or ADSs provided that they do

not carry on a trade, profession or vocation in the United Kingdom through a branch, agency or permanent establishment in connection with which the

ordinary shares or ADSs are held.

British American Tobacco p.l.c. Form 20-F 2025<br>

A U.S. holder who is an individual, who has ceased to be resident for tax purposes in the United Kingdom for a period of less than five years and who

disposes of ordinary shares or ADSs during that period may be liable for UK tax on capital gains (in the absence of any available exemptions or reliefs). If

applicable, the tax charge will arise in the tax year that the individual returns to the United Kingdom.

**Tax on dividends** 

BAT is not required to withhold UK tax at source from dividends paid on ordinary shares or ADSs.

U.S. holders will not generally be subject to UK tax on dividends received from BAT provided that they do not carry on a trade, profession or vocation in the

United Kingdom through a branch, agency or permanent establishment in connection with which the ordinary shares or ADSs are held.

**Stamp duty and stamp duty reserve tax (SDRT)** 

Based on current published HMRC practice and recent case law, transfers of ADSs should not be subject to SDRT or stamp duty. The transfer of an

underlying ordinary share to the ADS holder in exchange for the cancellation of an ADS should also not give rise to a stamp duty or SDRT charge.

Transfers of ordinary shares outside of the depositary bank, including the repurchase of ordinary shares by BAT, will generally be subject to stamp duty or

SDRT at the rate of 0.5% of the amount or value of the consideration given, except as described above in connection with the cancellation of an ADS. If

ordinary shares are redeposited into a clearance service or depositary system, the redeposit will attract stamp duty or SDRT at the higher rate of 1.5%.

The purchaser or the transferee of the ordinary shares or ADSs will generally be responsible for paying any stamp duty or SDRT payable. Where stamp duty

or SDRT is payable, it is payable regardless of the residence position of the purchaser.

**Inheritance tax** 

A gift or settlement of ordinary shares or ADSs by, or on the death of, an individual shareholder may give rise to a liability to UK inheritance tax even if the

shareholder is not a resident of, or domiciled in, the United Kingdom.

A charge to inheritance tax may arise in certain circumstances where ordinary shares or ADSs are held by close companies and trustees of settlements.

However, pursuant to the Estate and Gift Tax Treaty 1980 (the "Treaty") entered into between the United Kingdom and the United States, a gift or settlement

of ordinary shares or ADSs by shareholders who are domiciled in the United States for the purposes of the Treaty may be exempt from any liability to UK

inheritance tax.

**Item 10. H - Documents on display**

The Company is subject to the information requirements of the U.S. Securities Exchange Act of 1934 applicable to foreign private issuers. In accordance

with these requirements, the Company files its Form 20-F and other documents with the SEC. BAT's SEC filings are available to the public at the SEC's

website, www.sec.gov. The Company's Form 20-F is also available on the Company's website, http://www.bat.com. The information on our website is not

incorporated by reference into this Form 20-F.

**Item 10. J - Annual Report to security holders**

The Registrant intends to submit the Annual Report to security holders in electronic format on 13 February 2026, in accordance with the Edgar Filer

Manual.

**Item 11 - Quantitative and qualitative disclosures about market risk**

For quantitative and qualitative disclosures about market risk, please refer to note 26in Part III - Item 18 Notes on the Accounts.

**Item 12 - Description of securities other than equity securities**

**Item 12. D - American Depositary Shares**

**Fees and Charges Payable by ADS Holders**

Citibank, N.A. (Citibank) was appointed as the depositary bank (the "Depositary") for BAT's ADS programme pursuant to the Amended and Restated

Deposit Agreement dated 1 December 2008 and amended as of 14 February 2017 and 14 June 2017 between BAT, the Depositary and the owners and

holders of ADSs (the "Deposit Agreement"). Citibank was reappointed as the Depositary pursuant to the Second Amended and Restated Deposit Agreement

dated 26 November 2018 (the "Restated Deposit Agreement") and pursuant to a Letter Agreement effective from 1 December 2023 (the "Letter

Agreement").

The Restated Deposit Agreement provides that ADS holders may be required to pay various fees to the Depositary, and the Depositary may refuse to provide

any service for which a fee is payable, until the applicable fee has been paid.

---

| | |
|:---|:---|
| Service | Fees |
| Issuance of ADSs upon deposit of ordinary shares (excluding issuances as a result of <br>distributions of shares described below)<br>| Up to US$0.05 per ADS issued<sup>1</sup> |
| Cancellation of ADSs | Up to US$0.05 per ADS surrendered<sup>1</sup> |
| Distribution of cash dividends or other cash distributions (i.e., sale of rights and other <br>entitlements)<br>| Up to US$0.05 per ADS held<sup>2</sup> |
| Distribution of ADSs pursuant to: (1) stock dividends or other free stock distributions; or <br>(2) exercise of rights to purchase additional BAT ADSs<br>| Up to US$0.05 per ADS held |
| Distribution of securities other than ADSs or rights to purchase additional ADSs (i.e., <br>spinoff shares)<br>| Up to US$0.05 per ADS held |
| Depositary bank services | Up to US$0.05 per ADS held |

---

**Notes:**

British American Tobacco p.l.c. Form 20-F 2025<br>

1. Under the terms of a separate agreement between BAT and the Depositary, the Depositary has agreed to waive the fees that would otherwise be payable in connection with the issuance of ADSs upon deposit

of ordinary shares and the cancellation of ADSs and corresponding withdrawal of ordinary shares, in each case by BAT or any of its affiliates, officers, directors or employees. The terms of this separate

agreement may be amended at any time by BAT and the Depositary.

2. Under the Restated Deposit Agreement, cash dividends paid in respect of ADSs are subject to a fee of up to US$0.05 per ADS payable to the Depositary. Currently, under the terms of the Letter Agreement,

such dividends are subject to a fee of up to US$0.04 per ADR per year (a fee of US$0.01 per dividend based on the distribution of four quarterly cash dividends per year). Under the Letter Agreement, the

dividend fee may not be varied by the Depositary without the consent of BAT.

In addition, ADS holders may be required under the Restated Deposit Agreement to pay the Depositary: (a) taxes (including applicable interest and penalties)

and other governmental charges; (b) registration fees; (c) certain cable, telex and facsimile transmission and delivery expenses; (d) the expenses and charges

incurred by the Depositary in the conversion of foreign currency; (e) such fees and expenses as are incurred by the Depositary in connection with compliance

with applicable exchange control regulations and other regulatory requirements; and (f) the fees and expenses incurred by the Depositary, the custodian or

any nominee in connection with the servicing or delivery of deposited securities. The Depositary may: (a) withhold dividends or other distributions or sell for

the account of any ADS holder any or all of the shares underlying the ADSs in order to satisfy any tax or governmental charge; and (b) deduct from any cash

distribution the applicable fees and charges of, and expenses incurred by, the Depositary and any taxes, duties or other governmental charges on account.

**Fees and Payments Made by the Depositary to BAT**

Under the terms of the contractual arrangements set out in the separate agreement between BAT and the Depositary referred to above, BAT received a total

of approximately US$15.6 million from the Depositary, comprising fees charged in respect of dividends and a contribution to BAT's ADS programme

administration costs for the year ended 31 December 2025.

In 2025, these programme administration costs principally included those associated with AGM proxy mailings, exchange listing and regulatory fees, foreign

private issuer analysis, legal fees, share registration fees and other expenses incurred by BAT in relation to the ADS programme. Under these contractual

arrangements, the Depositary has also agreed to waive certain standard fees associated with the administration of the ADS programme.

All enquiries regarding ADS holder accounts and payment of dividends should be addressed to:

Citibank Shareholder Services

PO Box 43077, Providence, Rhode Island 02940-3077, U.S.

Tel: +1 888 895 2025 (toll-free) or +1 781 575 4555

Email: Citibank@shareholders-online.com

Website: www.citi.com/dr

British American Tobacco p.l.c. Form 20-F 2025<br>

**Part II**

**Item 15 - Controls and procedures**

**Disclosure controls and procedures**

The Group maintains 'disclosure controls and procedures' (as such term is defined in Exchange Act Rule 13a-15(e)), that are designed to ensure that

information required to be disclosed in reports the Group files or submits under the Exchange Act is recorded, processed, summarised and reported within the

time periods specified in the SEC rules and forms, and that such information is accumulated and communicated to Management, including the Chief

Executive and the Interim Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

In designing and evaluating our disclosure controls and procedures, our Management, including the Chief Executive and the Interim Chief Financial Officer,

recognise that any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the

objectives of the disclosure controls and procedures are met. Due to the inherent limitations in all control systems, no evaluation of controls can provide

absolute assurance that all control issues and instances of fraud, if any, within the Group have been detected. The Group's disclosure controls and procedures

have been designed to meet, and Management believes that they meet, reasonable assurance standards.

Management, with the participation of the Chief Executive and the Interim Chief Financial Officer, has evaluated the effectiveness of the Group disclosure

controls and procedures pursuant to Exchange Act Rule 13a-15(b) as of the end of the period covered by this Form 20-F. Based on that evaluation, the Chief

Executive and the Interim Chief Financial Officer have concluded that the Group disclosure controls and procedures were effective at a reasonable

assurance level.

**Management's report on internal control over financial reporting**

Management, under the oversight of the Chief Executive and the Interim Chief Financial Officer, is responsible for establishing and maintaining adequate

internal control over financial reporting for the Group. The Group's internal control over financial reporting consists of processes which are designed to:

provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Group's financial statements for external reporting

purposes in accordance with IFRS as issued by the IASB; provide reasonable assurance that receipts and expenditure are made only in accordance with the

authorisation of Management; and provide reasonable assurance regarding the prevention or timely detection of any unauthorised acquisition, use or disposal

of assets that could have a material effect on the consolidated financial statements.

As required by Section 404 of the Sarbanes-Oxley Act of 2002, Management has assessed the effectiveness of the internal control over financial reporting (as

defined in Rules 13(a)-13(f) and 15(d)-15(f) under the U.S. Securities Exchange Act of 1934) based on the updated Internal Control-Integrated Framework

issued by the Committee of Sponsoring Organisations of the Treadway Commission (COSO) (2013). Based on that assessment, Management has determined

that the Group's internal control over financial reporting was effective as at 31 December 2025.

Any internal control framework, no matter how well designed, has inherent limitations, including the possibility of human error and the circumvention or

overriding of controls and procedures and may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are

subject to the risk that controls may become inadequate because of changes in conditions or because the degree of compliance with the policies or procedures

may deteriorate.

**Attestation report of the registered public accounting firm**

KPMG LLP, an independent registered public accounting firm, who also audits the Group's consolidated financial statements, has audited the effectiveness

of the Group's internal control over financial reporting as at 31 December 2025, the attestation report in respect of which is included in this document.

**Changes in internal control over financial reporting**

During the period covered by this report, there were no changes in the Group's internal control over financial reporting that have materially affected or are

reasonably likely to materially affect the effectiveness of internal control over financial reporting.

**Item 16A - Audit committee financial expert**

All members of the Audit Committee are independent Non-Executive Directors in accordance with the 2024 Code Provisions 10 and 24 and applicable U.S.

federal securities laws and NYSE listing standards.

During the period covered by the report, Darrell Thomas is and Holly Keller Koeppel was, designated by the Board as an audit committee financial expert in

accordance with applicable U.S. federal securities laws and NYSE listing standards.

**Item 16B - Code of ethics**

The NYSE rules require U.S. companies to adopt and disclose a code of business conduct and ethics for all directors, officers and employees and promptly

disclose any waivers of the code for directors or executive officers. The Group Standards of Business Conduct (the SoBC) apply to all employees in the

Group, including senior Management and the Board, and satisfy the NYSE requirements. All Group companies have adopted the SoBC (or localised

versions). The SoBC also set out the Group's whistleblowing policy, enabling employees, in confidence and anonymously, to raise concerns without fear of

reprisal, including concerns regarding questionable accounting or auditing matters. The SoBC is available at bat.com/sobc.

The Company has also adopted a code of ethics for its Chief Executive, Finance Director (current title: Chief Financial Officer), Group Financial Controller

and Group Chief Accountant as required by the provisions of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules issued by the SEC. No waivers or

exceptions to the Code of Ethics were granted in 2025. The Code of Ethics includes requirements in relation to confidentiality, conflicts of interest and

corporate opportunities, and obligations for those senior financial officers to act with honesty and integrity in the performance of their duties and to promote

British American Tobacco p.l.c. Form 20-F 2025<br>

full, fair, accurate, timely and understandable disclosures in all reports and other documents submitted to the SEC, the UK Financial Conduct Authority, and

any other regulatory agency. For further details regarding the Code of Ethics, please refer to the [Exhibit 11.1](#ia53e6ca54d894bde98684b8ab3a259a8_775) on Item 19.

The Company considers that these codes and policies address the matters specified in the NYSE rules for U.S. companies.

**Item 16C - Principal Accountant Fees and Services**

A breakdown of audit, audit-related, tax services and non-audit fees paid to KPMG firms and associates in 2025 is provided in note 6(m) in Part III - Item 18

Notes on the Accounts.

**Pre-Approval Policies and Procedures - Group Auditor Independence Policy (AIP)**

The key principle of the AIP is that the Group's external auditors may only be engaged to provide services where the provision of those services does not

impair auditor independence and objectivity. The AIP does not permit the Committee to delegate its responsibilities to the external auditors and the external

auditors are only permitted to provide audit, audit-related and permissible non-audit services in accordance with the AIP. Audit services are approved in

advance by the Committee on the basis of an annual engagement letter and the scope of audit services is agreed by the Committee with the external auditors.

Subject to the restrictions specified in the AIP, the external auditors may also provide certain permissible non-audit services with prior approval in

accordance with the AIP. The requirement for appropriate prior approval of permissible non-audit services may be waived only if the aggregate amount of all

permissible non-audit services provided is less than 5% of the total amount paid to the external auditors during the reporting year, where those services were

not recognised to be non-audit services at the time of engagement, and provided those permissible non-audit services are promptly brought to the attention of

the Committee and their provision is approved prior to completion of the audit in the relevant reporting year.

The provision of permissible non-audit services must be put to tender if expected spend exceeds limits specified in the AIP, unless a waiver of this

requirement, in accordance with the terms of the AIP, is agreed by the Chief Financial Officer and notified to the Committee.

The AIP:

–requires appropriate prior approval for all audit, audit-related and permissible non-audit services, except in respect of permissible non-audit services falling

within the exceptions described above;

–prohibits the provision of certain types of services by the external auditors, including those with contingent fee arrangements, expert services unrelated to audit

and other services prohibited by U.S. securities laws, the PCAOB and/or the FRC;

–prohibits the Chief Executive, Chief Financial Officer, Group Financial Controller and Group Chief Accountant (or any person serving in an equivalent

position) from having been employed by the external auditors in any capacity in connection with the Group audit for two years before initiation of an audit;

–specifies requirements in respect of audit partner rotation, including for both the lead and the concurring external audit partners to rotate off the Group audit

engagement at least every five years, and not to recommence provision of audit or audit-related services to the Group for a further five years; and

–provides authority for the Committee to oversee any allegations of improper influence, coercion, manipulation or purposeful misleading in connection with

any external audit, and to review any issues arising in the course of engagement with the external auditors.

**Item 16D - Exemptions from the Listing Standards for audit committee**

Not applicable.

**Item 16E - Purchases of equity securities by the issuer and affiliated purchasers**

On 18 March 2024, the Company announced the launch of a share buy-back programme to purchase £1.60 billion of its own ordinary shares of 25 pence

each (the 'Programme') by 31 December 2025, with £700 million to be purchased in 2024, and the remaining £900 million to be purchased in 2025. The

Programme commenced on the same date. On 28 May 2025, the Company announced that the existing Programme would be extended to buy back an

additional £200 million of its ordinary shares, increasing the total amount to be repurchased in 2025 to £1.1 billion. On 9 December 2025, the Company

announced that the existing Programme would be extended to purchase an additional £1.3 billion of its ordinary shares in 2026. All shares purchased

pursuant to the Programme will be cancelled to reduce the issued share capital of the Company.

Under the Programme, the Company purchased 30,282,076 ordinary shares of 25 pence each for a total consideration of £1.1 billion in 2025 (average price

of £36.32 per share), representing 1.39% of the Company's issued share capital (excluding treasury shares) as at 31 December 2025. All shares purchased

under the Programme in 2025 were cancelled.

The following table provides details of ordinary share purchases made under the Programme, or made by the trustees of employee share ownership plans

(ESOPs) andother purchases of ordinary shares made to satisfy the commitments to deliver shares under certain employee share-based payment plans.

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Total number of shares** <br>**purchased**<sup>1</sup><br>| **Average price** <br>**paid per** <br>**share £**<sup>2</sup><br>| **Total number of shares** <br>**purchased under** <br>**the Programme**<sup>3, 4</sup><br>| **The maximum £ of shares** <br>**that may yet be purchased** <br>**under the Programme**<sup>3, 4</sup><br>|
| **2025** |  |  |  |  |
| January | 2619631 | 29.997693 | 2615893 | £821,527,384.07 |
| February | 2370061 | 31.564474 | 2265167 | £750,078,645.72 |
| March | 2247220 | 31.417930 | 2243531 | £679,589,038.77 |
| April | 3871457 | 31.492971 | 2472501 | £601,695,520.71 |
| May<sup>4</sup> | 3112533 | 32.299005 | 2453438 | £722,672,751.17 |
| June | 2075387 | 35.086814 | 2071724 | £649,977,769.88 |
| July | 3102010 | 37.435658 | 3098337 | £533,977,847.25 |
| August | 2327604 | 42.195304 | 2238078 | £439,446,278.85 |
| September | 2580875 | 40.556606 | 2577874 | £334,897,554.57 |
| October | 3660339 | 38.441120 | 3657017 | £194,320,695.85 |
| November | 2399976 | 41.688073 | 2318180 | £97,662,151.85 |
| December | 2273002 | 43.014759 | 2270336 | £7,089.96 |
| **TOTAL** | **32640095** |  | **30282076** |  |

---

**Notes:**

1. Total number of shares purchased under the Programme, by trustees of ESOPs and under certain employee share-based plans. During the year ended 31 December 2025, a total of 2,358,019 shares were

purchased in addition to shares purchased under the Programme. All share purchases were of ordinary shares of 25p each and were carried out on the open-market or were other transactions related to employee

share-based plans. No purchase of ADSs took place during the year ended 31 December 2025.

2. Average price paid across purchases made under the Programme, by the trustees of ESOPs and under certain employee share-based plans.

3. On 18 March 2024, the Company announced a Programme to purchase £1.60 billion (US$2.04 billion) of its own shares. The Programme will end no later than 31 December 2025. Authorisation was given at the

2025 AGM to buy-back up to 220.45 million ordinary shares.

4. On 28 May 2025, the Company announced that the existing Programme would be extended to buy back a further £200 million (US$269.38 million) of its ordinary shares.

**Item 16G - Corporate Governance** 

**Principles**

In the U.S., ADSs of the Company are listed on the New York Stock Exchange (NYSE). The significant differences between the Company's corporate

governance practices as a UK company and those required by NYSE listing standards for U.S. companies are discussed below.

The Company has applied a set of board governance principles, which reflect the 2024 Code and its principles-based approach to corporate governance.

NYSE rules require U.S. companies to adopt and disclose on their websites corporate governance guidelines. The Company complies with UK requirements,

including a statement in its 2025 Annual Report of how the Company has applied the principles of the 2024 Code and that the Company has complied with

the provisions of the 2024 Code.

**Independence**

The Company's Board governance principles require that all Non-Executive Directors be determined by the Board to be independent in character and

judgement and free from any business or other relationships that could interfere materially with, or appear to affect, their judgement. The Board also has

formal procedures for managing conflicts of interest. The Board has determined that, in its judgement, the Chair of the Board and all of the Non-Executive

Directors are independent. In doing so, the Board has taken into consideration the independence requirements outlined in the NYSE's listing standards and

considers these to be met by the Chair and all of its Non-Executive Directors.

**Non-Executive Director Meetings**

Meetings of the Non-Executive Directors, led by the Chair and without any Executive Director present, are scheduled in the Board calendar. These meetings

are usually held following scheduled Board meetings, with additional Non-Executive Director meetings convened where required.

The Executive and the Non-Executive Directors also meet annually, led by the Senior Independent Director and without the Chair present, to discuss the

Chair's performance.

**Committees**

The Company has a number of Board Committees that are broadly comparable in purpose and composition to those required by NYSE rules for domestic

U.S. companies. For instance, the Company has a Nominations (rather than nominating/corporate governance) Committee and a Remuneration (rather than

compensation) Committee. The Company also has an Audit Committee, which NYSE rules require for both U.S. companies and foreign private issuers.

These Committees are composed solely of Non-Executive Directors and, in the case of the Nominations Committee, the Chair of the Board whom the Board

has determined to be independent in the manner described above.

Each Board Committee has its own terms of reference, which prescribe the composition, main tasks and requirements of each of the Committees (see Item

6. C - Board Practices).

Under U.S. securities laws and the listing standards of the NYSE, the Company is required to have an audit committee that satisfies the requirements of Rule

10A-3 under the Exchange Act and Section 303A.06 of the NYSE Listed Company Manual. The Company's Audit Committee complies with these

requirements. The Company's Audit Committee does not have direct responsibility for the appointment, reappointment or removal of the independent

auditors. Instead, it follows the UK Companies Act by making recommendations to the Board on these matters for it to put forward for shareholder approval

at the AGM.

One of the NYSE's additional requirements for the audit committee states that at least one member of the audit committee is to have 'accounting or related

financial management expertise'. The Board has determined that Darrell Thomas and Holly Keller Koeppel possess such expertise and also possess the

financial and audit committee experience set forth in both the 2024 UK Code and SEC rules. Darrell Thomas is and Holly Keller Koeppel was designated as

an Audit Committee financial expert as set out in Item 16A of Form 20-F. The Board has also determined that each Audit Committee member meets the

financial literacy requirements applicable under NYSE listing standards. For further information on how the Company's Directors meet ethics standards

pursuant to NYSE requirements please refer to Item 16B.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Shareholder Approval of Equity Compensation Plans**

The NYSE rules for U.S. companies require that shareholders must be given the opportunity to vote on all equity-compensation plans and material revisions

to those plans. The Company complies with UK requirements that are similar to the NYSE rules. The Board, however, does not explicitly take into

consideration the NYSE's detailed definition of what are considered 'material revisions'.

**Independent Director Contact**

Interested parties may communicate directly with the independent Directors, individually or as a group, by sending written correspondence addressed to the

independent Director(s) to the attention of the Company Secretary at the following address: c/o Caroline Ferland, Company Secretary, British American

Tobacco p.l.c., Globe House, 4 Temple Place, London WC2R 2PG.

**Item 16J - Insider trading policies** 

The British American Tobacco Code for Share Dealing (the BAT Code) governs the purchase, sale, and other dispositions of BAT's securities by Directors,

employees (including senior management), contractors, and consultants of the Group.

The BAT Code is reasonably designed to promote compliance with the UK's Market Abuse Regulation and other applicable insider trading laws, rules and

regulations, and any listing standards applicable to the Group. The BAT Code is incorporated by reference to [Exhibit 11.2](#ia53e6ca54d894bde98684b8ab3a259a8_775) to this Form 20-F.

**Item 16K - Cybersecurity**

Cyber security is crucial to the Group's business operations, as the Group relies on IDT systems and networks to conduct core activities, including

manufacturing, distribution, marketing, customer service, science, research and development, and financial and management reporting.

The Board acknowledges that cyber security threats present significant risks to the Group's business, reputation, financial condition and competitive position, as well as to

the security and privacy of our consumers, employees and other stakeholders. These risks are pertinent as the Group introduces new technologies from time to time as part

of its business transformation, such as loyalty programmes, connected technologies and other interactive platforms which may alter the Group's risk profile and increase

the Group's exposure to cyber threats.

To mitigate these risks, the Group implements processes to identify, assess and manage material cyber security risks. These processes are integrated into the

Group's overall risk management systems and processes, overseen by the Board and implemented by management. These processes include:

–implementing appropriate technical and organisational security measures, such as defensive technologies, encryption, authentication, and backup and

recovery systems, to protect the confidentiality, integrity and availability of all Group systems and networks, and the data stored on or transmitted through

them;

–providing regular training and awareness programmes to Group company employees and contractors on cyber security best practices and procedures,

adherence to our Standards of Business Conduct (SoBC) (including cyber security and information security requirements) and responding to other relevant

issues as required;

–maintaining vendor management processes for key vendors, including conducting due diligence and incorporating contractual obligations, intended to

ensure that third-party service providers with access to Group IDT systems and networks, or that process or store Group data, adhere to our cyber security

requirements and standards;

–developing, maintaining and testing the Group's incident response and business continuity procedures designed to enable the Group to promptly detect,

contain, analyse, report and recover from any potential or actual incidents and establish the Group's resiliency from technology-related incidents;

–engaging external assessors, consultants and other third parties as appropriate, to support the Group's cyber security risk assessment, identification and

management processes and to provide independent assurance and recommendations; and

–engaging with relevant internal and external stakeholders, such as regulators, law enforcement authorities, customers and other industry stakeholders, on

cyber security matters and being prepared to disclose any material cyber security risks or incidents in a timely and transparent manner.

Our Group SoBC and Supplier Code of Conduct include requirements for all Group employees, contractors as well as suppliers to conduct themselves in a

way that reduces cyber security risk and protects the Group's systems and data.

The Group regularlyreviews and updates its cyber security risk processes to support alignment with business objectives, regulatory requirements and

industry standards.

To support the ongoing transformation of the Group's business and product portfolio, the Group is strengthening its digital risk management programme.

This includes updating cyber security controls and incident response plan, expanding the cyber security team, increasing business-wide engagement, and

extending coverage to a wider range of technologies and solutions. These efforts aim to improve identification, management, monitoring and reporting of

cyber risks. Insights from audits, assessments, and incident reports are regularly reviewed and integrated to enhance cyber resilience and awareness across the

Group.

Cyber security risk management is integrated into, and follows, the Group's risk identification process. Cyber security risks are integrated into the Group risk

register and assessed by defined impact and likelihood categories.

Cyber security governance and oversight

The Board is responsible for the Group's strategy, including oversight of the Group's IDT and cyber security strategy, and for reviewing the effectiveness of

its risk management and internal control systems.

On an annual basis, the Board reviews the Group risk register, which incorporates cyber security risks. In 2025, the Board was briefed on the Group's cyber

security incident response plan and approach to incident classification by the Director, Digital & Information and the Group Chief Information Security

Officer (CISO) (reporting to the Director, Digital & Information).

Through the Audit Committee's terms of reference, the Board has delegated certain responsibilities to the Audit Committee, including the review of the

Group's risk management and internal control framework to ensure there is due process for risk identification and management, monitoring the effectiveness

of material controls, reviewing the Group risk register and emerging risks, and monitoring procedures and controls for safeguarding assets including cyber

security controls.

The Audit Committee reviews the Group risk register twice annually and is briefed periodically on the cyber risk landscape and Group cyber resilience by the

Group CISO. The Audit Committee also receives reports from the Corporate Audit Committee, which monitors the effectiveness of risk management and

internal controls across the Group's functions and oversees the Group's cyber security risk management framework.

The Group maintains a dedicated cyber security team, led by the Group CISO, responsible for developing and implementing the Group's cyber security

strategy, standards and procedures, including to address any material incident that might arise.

British American Tobacco p.l.c. Form 20-F 2025<br>

The Group's cyber security team has appropriate professional expertise, knowledge and experience in the field, including to identify, assess and manage

cyber security risks, maintain appropriate security monitoring, incident response and business continuity procedures, and to implement those should an

incident arise. Senior cyber security team members, including the Group CISO, all have prior relevant industry experience.

The Group CISO has over 25 years of information security and IT experience with the Group and previously served as the Deputy CISO for the Group.

Relevant industry certifications are also held within the cyber security team, for example, Certified Information Security Manager (CISM), Certified

Information Systems Auditor (CISA), Certified in Risk and Information Systems Controls (CRISC), Certified Incident Handler, Certified Forensic Analyst

and Certified Information Systems Security Professional.

The Group's cyber security team actively monitors and evaluates the evolving cyber security threat landscape. It assesses the security posture of the Group's

IDT landscape using various tools, including vulnerability scans, penetration tests and control assessments. Specialists are engaged on an annual basis to

assess the Group's cyber security programme and identify and prioritise cyber security risks and vulnerabilities.

Key findings from these assessments and incident summaries are reported periodically to the Director, Digital & Information, and to the Audit Committee

where applicable, accompanied by recommendations for mitigating or addressing any identified risks. Any significant cyber security incidents would be

reported as soon as reasonably practicable to the Audit Committee and the Board in accordance with the Group's incident response procedures.

For additional information on cyber security threats and how these could materially affect our business strategy, results of operations or financial condition,

refer to[Item 3.D - Group risk factor 'Disruption to the Group's or its third-party providers' digital and information technology](#i1e8fde425f7c43e5b768493c0a2144ae_911607)[systems](#i1e8fde425f7c43e5b768493c0a2144ae_911607)', including by

cyberattack, human error, or the malicious manipulation or disclosure of confidential or sensitive information' on page [4](#i1e8fde425f7c43e5b768493c0a2144ae_911607).

British American Tobacco p.l.c. Form 20-F 2025<br>

**Part III**

**Item 17 - Financial Statements**

We have responded to Item 18 in lieu of responding to this item.

**Item 18 - Financial Statements**

**Report of Independent Registered Public Accounting Firm**

**To the Shareholders and Board of Directors of British American Tobacco p.l.c.**

**Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting** 

We have audited the accompanying Group Balance Sheet of British American Tobacco p.l.c. and subsidiaries (the Group) as of December 31, 2025,

and 2024, the related Group Income Statement, Group Statement of Comprehensive Income, Group Statement of Changes in Equity, and Group Cash

Flow Statement for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively, the consolidated financial

statements). We also have audited the Group's internal control over financial reporting as of December 31, 2025, based on criteria established in

*Internal Control – Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Group as of

December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31,

2025, in conformity with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. Also in our

opinion, the Group maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025 based on criteria

established in *Internal Control – Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission.

**Basis for Opinions** 

The Group's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial

reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's report

on internal control over financial reporting. Our responsibility is to express an opinion on the Group's consolidated financial statements and an

opinion on the Group's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public

Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Group in accordance with the

U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain

reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and

whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated

financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a

test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting

principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the

risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.

Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a

reasonable basis for our opinions.

**Definition and Limitations of Internal Control Over Financial Reporting** 

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial

reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's

internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,

accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are

recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and

expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide

reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have

a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any

evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the

degree of compliance with the policies or procedures may deteriorate.

**Critical Audit Matters**

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were

communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the

consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit

matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the

critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

**Recoverability of Newport, Natural American Spirit (NAS), and Grizzly trademarks arising from the Reynolds American Inc. acquisition in** 

**2017.** As discussed in Note 12 to the consolidated financial statements, the Group, as at December 31, 2025, has intangible assets related to Newport, NAS

and Grizzly trademarks of £37,351 million, arising from the 2017 acquisition of Reynolds American.

We identified the evaluation of the impairment analysis of Newport, NAS and Grizzly trademarks arising from the 2017 acquisition of Reynolds

American as a critical audit matter. There was a high degree of auditor judgment involved in evaluating: (i) projected sales volumes used in the

analysis of the recoverable amount for Newport, NAS and Grizzly trademarks including the volume growth associated with the launch of the Grizzly

Modern Oral product portfolio; (ii) the post-tax discount rate used in the analysis for recoverable amount of NAS and Grizzly trademarks; (iii) the

terminal growth rate used in the analysis for the recoverable amount of Grizzly trademarks; and (iv) the long-term volume growth rates beyond the

five year forecast period used in the analysis of the recoverable amount of the Newport and NAS trademarks.

British American Tobacco p.l.c. Form 20-F 2025<br>

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating

effectiveness of certain internal controls related to the impairment testing process, including controls related to the development of the projected sales

volume, post-tax discount rates, terminal growth rates, and long-term volume growth rates. In addition, we assessed the impairment analysis by:

–assessing and challenging the projected sales volume growth rates, terminal growth rates, and long-term volume growth rates against externally

derived publicly available data, including broker and analyst reports, industry reports, macro-economic assumptions and market share reports;

–challenging the projected sales volumes by comparing the historical projections to actual results to assess the Group's ability to accurately forecast;

–performing sensitivity analysis on the projected sales volumes, terminal growth rates, long-term volume growth rates, and post-tax discount rates to

assess the impact of changes in these assumptions on the amount of headroom for the Newport, NAS, and Grizzly trademarks; and

–involving a valuation professional with specialised skills and knowledge, who assisted in independently developing a range of post-tax discount

rates using market data points for comparable companies and comparing these market rates to those utilised by the Group.

**Provision arising from litigation in Canada**

As discussed in Note 24 and Note 31 to the consolidated financial statements, the Group's operating companies in Canada, Imperial Tobacco Canada

Limited ("Imperial"), received an unfavourable judgment on the smoking and health class actions certified by the Quebec Superior Court. As a result

of this judgment, in 2019 Imperial and Imperial Tobacco Company Limited (together with Imperial, ITCAN) filed for creditor protection under the

Companies' Creditors Arrangement Act (the "CCAA"). In October 2024, while under CCAA, the court-appointed mediator and monitor filed a

proposed plan of compromise and arrangement to resolve all outstanding tobacco litigation in Canada. Substantially similar proposed plans were also

filed for Rothmans, Benson & Hedges Inc. and JTI-Macdonald Corp. (collectively the "Proposed Plans"). Under the Proposed Plans, if ultimately

sanctioned and implemented,ITCAN, Rothmans, Benson & Hedges Inc. and JTI-Macdonald Corp would pay an aggregated settlement amount of

CAD$32.5 billion (approximately £18 billion). In March 2025, the court approved an amended version of the Proposed Plans which were

subsequently implemented in August 2025 and now referred to as Approved Plans. Management continues to recognise a provision of £2,794 million

as of December 31, 2025 to reflect management's best estimate of the Group's obligation.

We identified the evaluation of the provision arising from litigation in Canada as a critical audit matter because complex and subjective auditor

judgment was required in evaluating the Group's ability to estimate the timing and extent of any future economic outflow arising from the ultimate

resolution of the Canadian litigation. This involved evaluating the assumptions related to the rate at which volumes will decline and the execution of

future pricing plans (collectively "projected net revenue") and the discount rate applied in determining this estimate and the related disclosure.

Changes to those assumptions in combination could have had a significant effect on the Group's provision.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating

effectiveness of certain internal controls related to the legal process including controls related to the estimation of the timing and extent of any future

economic outflow arising from the ultimate resolution of the Canadian litigation. In addition, we assessed the Canadian legal proceedings by:

–reading letters received directly from the Group's external and internal legal counsel that evaluated the current status of the Canadian legal

proceedings;

–assessing and challenging ITCAN's projected net revenue and discount rate by examining externally derived publicly available data, and historical

trends;

–challenging the projected net revenue by comparing the historical projections to actual results to assess ITCAN's ability to accurately forecast;

–performing sensitivity analyses on ITCAN's projected net revenue and discount rate to assess the impact of changes in these assumptions on the

amount of the provision recorded; and

–assessing whether the Group's disclosures detail the key estimates and sensitivities including any impact of changes to key assumptions used in the

estimation of the provision for ITCAN.

/s/ KPMG LLP

We have served as the Group's auditor since 2015.

London, United Kingdom

February 11, 2026

British American Tobacco p.l.c. Form 20-F 2025<br>

**Group Balance Sheet**

---

| | | | |
|:---|:---|:---|:---|
| | | 31 December | 31 December |
| | <br>Notes | **2025**<br>**£m**<br>| 2024<br>£m<br>|
| **Assets** |  |  |  |
| Intangible assets | 12 | **86934** | 94276 |
| Property, plant and equipment | 13 | **4483** | 4379 |
| Investments in associates and joint ventures | 14 | **1521** | 1902 |
| Retirement benefit assets | 15 | **880** | 937 |
| Deferred tax assets | 16 | **2032** | 2573 |
| Trade and other receivables | 17 | **288** | 282 |
| Investments held at fair value | 18 | **333** | 146 |
| Derivative financial instruments | 19 | **135** | 110 |
| **Total non-current assets** |  | **96606** | 104605 |
| Inventories | 20 | **4382** | 4616 |
| Income tax receivable |  | **470** | 67 |
| Trade and other receivables | 17 | **3802** | 3604 |
| Investments held at fair value | 18 | **16** | 513 |
| Derivative financial instruments | 19 | **162** | 186 |
| Cash and cash equivalents | 21 | **3827** | 5297 |
|  |  | **12659** | 14283 |
| Assets classified as held-for-sale |  | **25** | 11 |
| **Total current assets** |  | **12684** | 14294 |
| **Total assets** |  | **109290** | 118899 |
| **Equity – capital and reserves** |  |  |  |
| Share capital | 22(a) | **577** | 585 |
| Share premium, capital redemption and merger reserves | 22(b) | **26675** | 26665 |
| Other reserves | 22(c) | **(4148)** | (902) |
| Retained earnings | 22(c) | **22929** | 21610 |
| Owners of the parent |  | **46033** | 47958 |
| Perpetual hybrid bonds | 22(d) | **1893** | 1685 |
| Non-controlling interests | 22(e) | **219** | 352 |
| **Total equity** |  | **48145** | 49995 |
| **Liabilities** |  |  |  |
| Borrowings | 23 | **31708** | 32638 |
| Retirement benefit liabilities | 15 | **801** | 820 |
| Deferred tax liabilities | 16 | **10343** | 11679 |
| Other provisions for liabilities | 24 | **3161** | 4071 |
| Trade and other payables | 25 | **484** | 685 |
| Derivative financial instruments | 19 | **124** | 268 |
| **Total non-current liabilities** |  | **46621** | 50161 |
| Borrowings | 23 | **3362** | 4312 |
| Income tax payable |  | **1129** | 1681 |
| Other provisions for liabilities | 24 | **608** | 3044 |
| Trade and other payables | 25 | **9328** | 9550 |
| Derivative financial instruments | 19 | **91** | 156 |
|  |  | **14518** | 18743 |
| Liabilities associated with assets classified as held-for-sale |  | **6** |  |
| **Total current liabilities** |  | **14524** | 18743 |
| **Total equity and liabilities** |  | **109290** | 118899 |

---

The accompanying notes are an integral part of these consolidated financial statements.

On behalf of the Board

**Luc Jobin**

Chair

11 February 2026

British American Tobacco p.l.c. Form 20-F 2025<br>

**Group Income Statement**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | For the years ended 31 December | For the years ended 31 December | For the years ended 31 December |
| | <br>Notes | **2025**<br>**£m**<br>| 2024<br>£m<br>| 2023<br>£m<br>|
| **Revenue**<sup>1</sup> | 2 | **25610** | 25867 | 27283 |
| Raw materials and consumables used |  | **(4465)** | (4565) | (4545) |
| Changes in inventories of finished goods and work in progress |  | **239** | 129 | (96) |
| Employee benefit costs | 3 | **(3125)** | (2831) | (2664) |
| Depreciation, amortisation and impairment costs | 4 | **(2547)** | (3101) | (28614) |
| Other operating income | 5 | **192** | 340 | 432 |
| Loss on reclassification from amortised cost to fair value |  | **(12)** | (10) | (9) |
| Other operating expenses | 6, 33 | **(5895)** | (13093) | (7538) |
| Profit/(loss) from operations | 2 | **9997** | 2736 | (15751) |
| Net finance costs | 8 | **(1819)** | (1098) | (1895) |
| Share of post-tax results of associates and joint ventures | 29 | **1681** | 1900 | 585 |
| **Profit/(loss) before taxation** |  | **9859** | 3538 | (17061) |
| Taxation on ordinary activities | 10 | **(2094)** | (357) | 2872 |
| **Profit/(loss) for the year** |  | **7765** | 3181 | (14189) |
| Attributable to: |  |  |  |  |
| Owners of the parent |  | **7764** | 3068 | (14367) |
| Non-controlling interests |  | **1** | 113 | 178 |
|  |  | **7765** | 3181 | (14189) |
| **Earnings/(loss) per share** |  |  |  |  |
| Basic | 11 | **351.0** | 136.7 | (646.6) |
| Diluted | 11 | **349.1** | 136.0 | (646.6) |

---

**Note:**

1. Revenue is net of duty, excise and other taxes of £32,160 million, £33,818 million and £36,917 million for the years ended 31 December 2025, 2024 and 2023, respectively.

The accompanying notes are an integral part of these consolidated financial statements.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Group Statement of Comprehensive Income**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | For the years ended 31 December | For the years ended 31 December | For the years ended 31 December |
| | <br>Notes | **2025**<br>**£m**<br>| 2024<br>£m<br>| 2023<br>£m<br>|
| **Profit/(loss) for the year** |  | **7765** | 3181 | (14189) |
| **Other comprehensive (expense)/income** |  |  |  |  |
| **Items that may be reclassified subsequently to profit or loss:** |  | **(3278)** | (50) | (3317) |
| Foreign currency translation and hedges of net investments in foreign operations |  |  |  |  |
| – differences on exchange from translation of foreign operations |  | **(3330)** | (195) | (4049) |
| – reclassified and reported in profit for the year | 22(c) | **2** |  | 552 |
| – net investment hedges – net fair value gains on derivatives |  | **151** | 20 | 236 |
| – net investment hedges – differences on exchange on borrowings |  | **(20)** | 17 | 9 |
| Cash flow hedges |  |  |  |  |
| – net fair value gains |  | **2** | 65 | 59 |
| – reclassified and reported in profit for the year |  | **16** | 36 | 12 |
| – tax on net fair value gains in respect of cash flow hedges | 10(f) | **(13)** | (23) | (23) |
| Investments held at fair value |  |  |  |  |
| – net fair value losses | 18 | **—** |  | (6) |
| Associates |  |  |  |  |
| – share of other comprehensive expense, net of tax | 9 | **(133)** | (13) | (107) |
| –differences on exchange reclassified to profit or loss | 9,22(c) | **47** | 43 |  |
| **Items that will not be reclassified subsequently to profit or loss:** |  | **(83)** | (7) | (57) |
| Retirement benefit schemes |  |  |  |  |
| – net actuarial losses | 15 | **(10)** | (19) | (106) |
| – movements in surplus restrictions | 15 | **(67)** | (14) | 24 |
| – tax on actuarial losses and movements in surplus restrictions | 10(f) | **—** | (1) | 30 |
| Investments held at fair value |  |  |  |  |
| – net fair value losses | 18 | **(2)** | (6) |  |
| Associates – share of other comprehensive (expense)/income, net of tax | 9 | **(4)** | 33 | (5) |
| Total other comprehensive expense for the year, net of tax |  | **(3361)** | (57) | (3374) |
| **Total comprehensive income/(expense) for the year, net of tax** |  | **4404** | 3124 | (17563) |
| Attributable to: |  |  |  |  |
| Owners of the parent |  | **4425** | 3013 | (17699) |
| Non-controlling interests |  | **(21)** | 111 | 136 |
|  |  | **4404** | 3124 | (17563) |

---

The accompanying notes are an integral part of these consolidated financial statements.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Group Statement of Changes in Equity - 2025**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Attributable to owners of the parent** | **Attributable to owners of the parent** | **Attributable to owners of the parent** | **Attributable to owners of the parent** | **Attributable to owners of the parent** | | | |
| | <br>Notes | **Share** <br>**capital**<br>**£m**<br>| **Share** <br>**premium,** <br>**capital** <br>**redemption** <br>**and merger** <br>**reserves**<br>**£m**<br>| **Other** <br>**reserves**<sup>1</sup><br>**£m**<br>| **Retained** <br>**earnings**<br>**£m**<br>| **Total** <br>**attributable** <br>**to owners of** <br>**parent**<br>**£m**<br>| <br>**Perpetual** <br>**hybrid** <br>**bonds**<br>**£m**<br>| <br>**Non-** <br>**controlling** <br>**interests**<sup>1</sup><br>**£m**<br>| <br>**Total** <br>**equity**<br>**£m**<br>|
| **Balance at 1 January 2025** |  | **585** | **26665** | **(902)** | **21610** | **47958** | **1685** | **352** | **49995** |
| Total comprehensive (expense)/income for the <br>year comprising:<br>|  | **—** | **—** | **(3267)** | **7692** | **4425** | **—** | **(21)** | **4404** |
| Profit for the year |  | **—** | **—** | **—** | **7764** | **7764** | **—** | **1** | **7765** |
| Other comprehensive expense <br>for the year<br>|  | **—** | **—** | **(3267)** | **(72)** | **(3339)** | **—** | **(22)** | **(3361)** |
| **Other changes in equity** |  |  |  |  |  |  |  |  |  |
| Cash flow hedges reclassified and reported in <br>total assets<br>|  | **—** | **—** | **21** | **—** | **21** | **—** | **—** | **21** |
| Employee share options |  |  |  |  |  |  |  |  |  |
| –value of employee services | 28 | **—** | **—** | **—** | **83** | **83** | **—** | **—** | **83** |
| –proceeds from new shares issued | 22(b) | **—** | **2** | **—** | **—** | **2** | **—** | **—** | **2** |
| Dividends and other appropriations |  |  |  |  |  |  |  |  |  |
| –ordinary shares | 22(f) | **—** | **—** | **—** | **(5240)** | **(5240)** | **—** | **—** | **(5240)** |
| –to non-controlling interests |  | **—** | **—** | **—** | **—** | **—** | **—** | **(108)** | **(108)** |
| Purchase of own shares |  |  |  |  |  |  |  |  |  |
| –held in employee share <br>ownership trusts<br>|  | **—** | **—** | **—** | **(61)** | **(61)** | **—** | **—** | **(61)** |
| –share buy-back programme, shares bought <br>back and cancelled<br>| 22(c)(vi) | **(8)** | **8** | **—** | **(1114)** | **(1114)** | **—** | **—** | **(1114)** |
| Perpetual hybrid bonds |  |  |  |  |  |  |  |  |  |
| –proceeds, net of issuance fees | 22(d) | **—** | **—** | **—** | **—** | **—** | **1050** | **—** | **1050** |
| –redemption of perpetual hybrid bonds, net of <br>costs<br>| 22(d) | **—** | **—** | **—** | **(39)** | **(39)** | **(844)** | **—** | **(883)** |
| –tax on issuance fees |  | **—** | **—** | **—** | **—** | **—** | **2** | **—** | **2** |
| –coupons paid | 22(d) | **—** | **—** | **—** | **(55)** | **(55)** | **—** | **—** | **(55)** |
| –tax on coupons paid |  | **—** | **—** | **—** | **14** | **14** | **—** | **—** | **14** |
| Non-controlling interests – acquisitions | 27(c) | **—** | **—** | **—** | **(15)** | **(15)** | **—** | **(4)** | **(19)** |
| Other movements |  | **—** | **—** | **—** | **54** | **54** | **—** | **—** | **54** |
| **Balance at 31 December 2025** |  | **577** | **26675** | **(4148)** | **22929** | **46033** | **1893** | **219** | **48145** |

---

**Note:**

1. Included in other reserves and non-controlling interests is a combined loss of £9 million in respect of assets transferred to held-for-sale. Refer to note 27(d)(i).

The accompanying notes are an integral part of these consolidated financial statements.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Group Statement of Changes in Equity - 2024**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | Attributable to owners of the parent | Attributable to owners of the parent | Attributable to owners of the parent | Attributable to owners of the parent | Attributable to owners of the parent | | | |
| | <br>Notes | Share <br>capital<br>£m<br>| Share <br>premium, <br>capital <br>redemption <br>and merger <br>reserves<br>£m<br>| Other <br>reserves<br>£m<br>| Retained <br>earnings<br>£m<br>| Total <br>attributable to <br>owners of <br>parent<br>£m<br>| <br>Perpetual <br>hybrid <br>bonds<br>£m<br>| <br>Non- <br>controlling <br>interests<br>£m<br>| <br>Total <br>equity<br>£m<br>|
| **Balance at 1 January 2024** |  | 614 | 26630 | (894) | 24531 | 50881 | 1685 | 368 | 52934 |
| Total comprehensive (expense)/<br>income for the year comprising:<br>|  |  |  | (21) | 3034 | 3013 |  | 111 | 3124 |
| Profit for the year |  |  |  |  | 3068 | 3068 |  | 113 | 3181 |
| Other comprehensive expense for the year |  |  |  | (21) | (34) | (55) |  | (2) | (57) |
| **Other changes in equity** |  |  |  |  |  |  |  |  |  |
| Cash flow hedges reclassified and reported in <br>total assets<br>|  |  |  | 13 |  | 13 |  |  | 13 |
| Employee share options |  |  |  |  |  |  |  |  |  |
| –value of employee services | 28 |  |  |  | 70 | 70 |  |  | 70 |
| – proceeds from new <br>shares issued<br>|  |  | 6 |  |  | 6 |  |  | 6 |
| Dividends and other appropriations |  |  |  |  |  |  |  |  |  |
| –ordinary shares | 22(f) |  |  |  | (5209) | (5209) |  |  | (5209) |
| –to non-controlling interests |  |  |  |  |  |  |  | (127) | (127) |
| Purchase of own shares |  |  |  |  |  |  |  |  |  |
| –held in employee share <br>ownership trusts<br>|  |  |  |  | (94) | (94) |  |  | (94) |
| – share buy-back programme | 22(c)(vi) |  |  |  | (698) | (698) |  |  | (698) |
| – shares bought back and cancelled | 22(a),(b) | (7) | 7 |  |  |  |  |  |  |
| Treasury shares cancelled | 22(a),(b) | (22) | 22 |  |  |  |  |  |  |
| Perpetual hybrid bonds |  |  |  |  |  |  |  |  |  |
| –coupons paid | 22(d) |  |  |  | (56) | (56) |  |  | (56) |
| –tax on coupons paid |  |  |  |  | 14 | 14 |  |  | 14 |
| Other movements |  |  |  |  | 18 | 18 |  |  | 18 |
| **Balance at 31 December 2024** |  | 585 | 26665 | (902) | 21610 | 47958 | 1685 | 352 | 49995 |

---

The accompanying notes are an integral part of these consolidated financial statements.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Group Statement of Changes in Equity - 2023**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | Attributable to owners of the parent | Attributable to owners of the parent | Attributable to owners of the parent | Attributable to owners of the parent | Attributable to owners of the parent | Attributable to owners of the parent | | | |
| | <br>Notes | Share <br>capital<br>£m<br>| Share <br>premium, <br>capital <br>redemption <br>and merger <br>reserves<br>£m<br>| Other <br>reserves<br>£m<br>| Retained <br>earnings<br>£m<br>| In respect of <br>assets held-<br>for-sale <br>£m<br>| Total <br>attributable to <br>owners of <br>parent<br>£m<br>| <br>Perpetual <br>hybrid <br>bonds<br>£m<br>| <br>Non- <br>controlling <br>interests<br>£m<br>| <br>Total <br>equity<br>£m<br>|
| **Balance at 1 January 2023** |  | 614 | 26628 | 2655 | 44081 | (295) | 73683 | 1685 | 342 | 75710 |
| Total comprehensive income for <br>the year comprising:<br>|  |  |  | (3281) | (14418) |  | (17699) |  | 136 | (17563) |
| (Loss)/profit for the year |  |  |  |  | (14367) |  | (14367) |  | 178 | (14189) |
| Other comprehensive income for <br>the year<br>|  |  |  | (3281) | (51) |  | (3332) |  | (42) | (3374) |
| **Other changes in equity** |  |  |  |  |  |  |  |  |  |  |
| Cash flow hedges reclassified <br>and reported in total assets<br>|  |  |  | 27 |  |  | 27 |  |  | 27 |
| Employee share options |  |  |  |  |  |  |  |  |  |  |
| –value of employee services | 28 |  |  |  | 71 |  | 71 |  |  | 71 |
| –proceeds from new shares <br>issued<br>|  |  | 2 |  |  |  | 2 |  |  | 2 |
| Dividends and other <br>appropriations<br>|  |  |  |  |  |  |  |  |  |  |
| –ordinary shares | 22(f) |  |  |  | (5071) |  | (5071) |  |  | (5071) |
| –to non-controlling interests |  |  |  |  |  |  |  |  | (110) | (110) |
| Purchase of own shares |  |  |  |  |  |  |  |  |  |  |
| –held in employee share <br>ownership trusts<br>|  |  |  |  | (110) |  | (110) |  |  | (110) |
| Perpetual hybrid bonds |  |  |  |  |  |  |  |  |  |  |
| –coupons paid | 22(d) |  |  |  | (58) |  | (58) |  |  | (58) |
| –tax on coupons paid |  |  |  |  | 14 |  | 14 |  |  | 14 |
| Reclassification of equity in <br>respect of assets classified as <br>held-for-sale<br>| 27(d) |  |  | (295) |  | 295 |  |  |  |  |
| Other movements |  |  |  |  | 22 |  | 22 |  |  | 22 |
| **Balance at 31 December 2023** |  | 614 | 26630 | (894) | 24531 |  | 50881 | 1685 | 368 | 52934 |

---

The accompanying notes are an integral part of these consolidated financial statements.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Group Cash Flow Statement**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | For the years ended 31 December | For the years ended 31 December | For the years ended 31 December |
| | <br>Notes | **2025**<br>**£m**<br>| 2024<br>£m<br>| 2023<br>£m<br>|
| Profit/(loss) for the year |  | **7765** | 3181 | (14189) |
| Taxation on ordinary activities |  | **2094** | 357 | (2872) |
| Share of post-tax results of associates and joint ventures |  | **(1681)** | (1900) | (585) |
| Net finance costs |  | **1819** | 1098 | 1895 |
| Profit/(loss) from operations |  | **9997** | 2736 | (15751) |
| Adjustments for |  |  |  |  |
| – depreciation, amortisation and impairment costs | 4 | **2547** | 3101 | 28614 |
| – decrease in inventories  |  | **112** | 35 | 265 |
| – increase in trade and other receivables |  | **(295)** | (269) | (487) |
| – decrease in Master Settlement Agreement payable | 6 | **(79)** | (294) | (287) |
| – (decrease)/increase in trade and other payables |  | **(207)** | 58 | 640 |
| – decrease in net retirement benefit liabilities |  | **(31)** | (76) | (111) |
| – (decrease)/increase in other provisions for liabilities | 24 | **(3409)** | 6322 | (489) |
| – other non-cash items |  | **264** | (40) | 436 |
| Cash generated from operating activities |  | **8899** | 11573 | 12830 |
| Dividends received from associates |  | **369** | 406 | 506 |
| Tax paid |  | **(2926)** | (1854) | (2622) |
| **Net cash generated from operating activities** |  | **6342** | 10125 | 10714 |
| **Cash flows from investing activities** |  |  |  |  |
| Interest received |  | **201** | 187 | 145 |
| Dividends received |  | **1** | **—** |  |
| Purchases of property, plant and equipment |  | **(551)** | (486) | (460) |
| Proceeds on disposal of property, plant and equipment |  | **37** | 145 | 54 |
| Purchases of intangibles |  | **(153)** | (122) | (141) |
| Proceeds on disposals of intangibles |  | **31** | 39 | 27 |
| Purchases of investments | 18 | **(54)** | (216) | (448) |
| Proceeds on disposals of investments | 18 | **848** | 299 | 405 |
| Investment in associates and acquisitions of other subsidiaries net of cash acquired |  | **(29)** | (48) | (37) |
| Proceeds from disposal of shares in associate, net of tax |  | **1052** | 1577 |  |
| Disposal of subsidiary, net of cash disposed of | 27(d) | **4** |  | 159 |
| **Net cash generated from/(used in) investing activities** |  | **1387** | 1375 | (296) |
| **Cash flows from financing activities** |  |  |  |  |
| Interest paid on borrowings and financing related activities |  | **(1631)** | (1703) | (1682) |
| Interest element of lease liabilities |  | **(40)** | (37) | (30) |
| Capital element of lease liabilities |  | **(177)** | (165) | (162) |
| Proceeds from increases in and new borrowings |  | **3814** | 2404 | 5134 |
| Reductions in and repayments of borrowings |  | **(3932)** | (4826) | (6769) |
| Outflows relating to derivative financial instruments |  | **(380)** | (128) | (480) |
| Purchases of own shares - share buy-back programme | 22(c) | **(1112)** | (698) |  |
| Purchases of own shares held in employee share ownership trusts | 22(c) | **(61)** | (94) | (110) |
| Proceeds from the issue of perpetual hybrid bonds, net of issuance costs | 22(d) | **1050** |  |  |
| Redemption of perpetual hybrid bonds, net of costs | 22(d) | **(883)** |  |  |
| Coupon paid on perpetual hybrid bonds |  | **(54)** | (56) | (59) |
| Dividends paid to owners of the parent |  | **(5238)** | (5213) | (5055) |
| Investments in relation to non-controlling interests | 30 | **(19)** |  |  |
| Dividends paid to non-controlling interests |  | **(100)** | (121) | (105) |
| Other |  | **1** | 5 | 4 |
| **Net cash used in financing activities** |  | **(8762)** | (10632) | (9314) |
| **Net cash flows (used in)/generated from operating, investing and financing activities** |  | **(1033)** | 868 | 1104 |
| Transferred (to)/from held-for-sale<sup>\*</sup> |  | **(208)** |  | 368 |
| Differences on exchange |  | **(76)** | (281) | (292) |
| **(Decrease)/increase in net cash and cash equivalents in the year** |  | **(1317)** | 587 | 1180 |
| Net cash and cash equivalents at 1 January |  | **5104** | 4517 | 3337 |
| **Net cash and cash equivalents at 31 December** | 21 | **3787** | 5104 | 4517 |

---

**Note:**

\*Included in the transferred from held-for-sale in 2023 is £102 million of foreign exchange loss due to the devaluation of the Russian ruble, as explained in note 27(d)(ii).

The accompanying notes are an integral part of these consolidated financial statements.

British American Tobacco p.l.c. Form 20-F 2025<br>

**1 Accounting policies**

**Basis of preparation**

The consolidated financial statements have been prepared in accordance withInternational Financial Reporting Standards (IFRS) as issued by the

International Accounting Standards Board (IASB).

The consolidated financial statements have been prepared on a going concern basis under the historical cost convention except as described in the accounting

policy below on financial instruments. In performing its going concern assessment, management considered forecasts and liquidity requirements covering a

period of at least twelve months from the date of approval of the financial statements and including the Group's ability to fund its operations and generate

cash to pay for debt as it falls due and takes into account the payments arising from the Master Settlement Agreement due in the U.S. in 2026, payments

under the Approved Plans in Canada (refer to note 24) and other known liabilities or future payments (including interim dividends), as they fall due. This

assessment includes consideration of geopolitical events and the general outlook in the global economy, as well as plausible downside scenarios after taking

into account the Group's Principal Risks and how they could impact the Group's operations. Any mitigating actions, should they be required, are all within

management's control and could include reductions in discretionary spending such as acquisitions and capital expenditure, or drawdowns on committed

facilities. After reviewing the Group's annual budget, plans and financing arrangements, the Directors consider that the Group has adequate resources to

continue operating and that it is therefore appropriate to continue to adopt the going concern basis in preparing the Form 20-F.

In preparing the financial statements, management has considered the impact of climate change, particularly in the context of the risks identified in the TCFD

disclosure and determined that the impact is not expected to be material:

–On the going concern and viability of the Group, over the next three years;

–On the Group's assessment of future cash flows (including as related to the capital expenditure plans as related to the Group's Scope 1 and 2 GHG

emission reduction commitments) as used in impairment assessments for the value in use of non-current assets including goodwill (note 12(b)); and

–In respect of factors including useful lives and residual values that determine the carrying value of non-financial current assets.

There has been no material impact identified on the financial reporting judgements and estimates. Management is aware that the risks related to climate

change are developing and subject to frequent change. Accordingly, these judgements and estimates will be kept under review as the future impacts of

climate change on the Group's financial statements depend on environmental, regulatory and other factors outside of the Group's control which are not all

currently known.

The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of

revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the date of the financial statements. The key estimates and assumptions

are set out in the accounting policies below, together with the related notes to the accounts.

The critical accounting judgements include:

–the determination as to whether control (subsidiaries), joint control (joint arrangements), or significant influence (associates) exists in relation to the

investments held by the Group. This is assessed after taking into account the Group's ability to appoint Directors to the entity's Board, its relative

shareholding compared with other shareholders, any significant contracts or arrangements with the entity or its other shareholders and other relevant facts

and circumstances. The application of these policies to Group subsidiaries in certain territories, including Canada, is explained in note 32;

–the review of applicable exchange rates for transactions with and translation of entities in territories where there are restrictions on free access to foreign

currency, or multiple exchange rates;

–the determination as to whether to recognise provisions and the exposures to contingent liabilities related to pending litigation or other outstanding claims,

as well as other contingent liabilities. Refer to note 24 for the provision associated with the Approved Plans in Canada. The accounting policy on

contingent liabilities, which are not provided for, is set out below and the contingent liabilities of the Group are explained in note 31. Judgement is

necessary to assess the likelihood that a pending claim is probable (more likely than not to succeed), possible or remote;

–the determination as to whether perpetual hybrid bonds should be classified as equity instead of borrowings (note 22(d)); and

–the identification and quantification of adjusting items. These are separately disclosed as memorandum information as explained below, and the impact of

these on the calculation of adjusted earnings per share is described in note 11.

The critical accounting estimates include:

–the review of intangible asset values, including goodwill and certain trademarks and similar intangibles. The key assumptions used in respect of the

impairment testing are the determination of cash-generating units, the budgeted and forecast cash flows of these units, the long-term growth rate for cash

flow projections and the rate used to discount the cash flow projections. These are described in note 12;

–the estimation of amounts to be recognised in respect of taxation and legal matters, and the estimation of other provisions for liabilities and charges are

subject to uncertain future events, may extend over several years and so the amount and/or timing may differ from current assumptions. The accounting

policy for taxation is explained below. The recognised deferred tax assets and liabilities, together with a note of unrecognised amounts, are shown in note

16, and a contingent tax asset is explained in note 10(b). Other provisions for liabilities and charges are as set out in note 24 including those in relation to

Canada. Litigation related deposits are shown in note 17. The application of these accounting policies to the payments made and credits recognised under

the Master Settlement Agreement by Reynolds American Inc. (Reynolds American) is described in note 6(b); and

–the estimation of and accounting for retirement benefit costs. The determination of the carrying value of assets and liabilities, as well as the charge for the

year, and amounts recognised in other comprehensive income, involves judgements made in conjunction with independent actuaries. These involve

estimates about uncertain future events on a country-by-country basis, including life expectancy of scheme members, salary and pension increases,

inflation, as well as discount rates and asset values at the year-end. The assumptions used by the Group and sensitivity analyses are described in note 15.

British American Tobacco p.l.c. Form 20-F 2025<br>

Such estimates and assumptions are based on historical experience and various other factors that are believed to be reasonable in the circumstances and

constitute management's best judgement at the date of the financial statements. In the future, actual experience may deviate from these estimates and

assumptions, which could affect the financial statements as the original estimates and assumptions are modified, as appropriate, in the year in which the

circumstances change.

These consolidated financial statements were authorised for issue by the Board of Directors on 11 February 2026.

With effect from 1 January 2025, the Group has adopted an Amendment to IAS 21 *The Effect of Changes In Exchange Rates* in respect of assessing whether

a currency is exchangeable into another currency and, when it is not, in determining the exchange rate to use and the disclosures to provide. The requirements

of the Amendment are largely consistent with the Group's existing practice and the impact of applying these amendments was not material.

With effect from 1 January 2024, the Group has adopted the Amendments to IAS 7 *Cash Flow Statements* and IFRS 7 *Financial Instruments: Disclosures* in

respect of disclosures relating to Supplier Financing Arrangements. Applying these amendments impacted certain disclosures in the notes to the financial

statements. In addition, Amendments to IAS 1 *Presentation of Financial Statements* have clarified certain aspects of the classification of liabilities as current

or non-current. The impact of these amendments was not material.

**Basis of consolidation**

The consolidated financial information includes the financial statements of British American Tobacco p.l.c. and its subsidiary undertakings, collectively 'the

Group', together with the Group's share of the results of its associates and joint arrangements.

A subsidiary is an entity controlled by the Group. Non-controlling interests represent the share of earnings or equity in subsidiaries that is not attributable,

directly or indirectly, to shareholders of the Group.

Identifiable assets and liabilities acquired in a business combination are measured at fair value at the date of acquiring control. Disposals of subsidiaries and

businesses due to sale or market withdrawal are accounted for as disposals from the date of losing control and may be classified as held-for-sale disposal

groups at the balance sheet date if specific tests under IFRS 5 *Non-current Assets Held For Sale and Discontinued Operations* are met. Discontinued

operations, where applicable, comprise material disposal groups representing a significant geographical area of operations or business activities.

Associates comprise investments in undertakings, which are not subsidiary undertakings or joint arrangements, where the Group exercises significant

influence. They are accounted for using the equity method.

Joint arrangements comprise contractual arrangements where two or more parties have joint control and where decisions regarding the relevant activities of

the entity require unanimous consent. Joint ventures are accounted for using the equity method. The Group accounts for its share of the assets, liabilities,

income and expenses of joint operations.

**Foreign currencies and hyperinflationary territories**

The functional currency of the Parent Company is sterling and this is also the presentation currency of the Group. The income and cash flow statements of

Group undertakings expressed in currencies other than sterling are translated to sterling using exchange rates applicable to the dates of the underlying

transactions. Average rates of exchange in each year are used where the average rate approximates the relevant exchange rate at the date of the underlying

transactions. Assets and liabilities of Group undertakings are translated at the applicable rates of exchange at the end of each year.

The results and net assets of the Group's foreign operations are predominantly denominated in currencies, including US dollars, Euros and Canadian dollars,

which are readily exchangeable into sterling or other freely convertible currencies.

The Group also operates in certain jurisdictions, including hyperinflationary jurisdictions such as Venezuela, where there are restrictions on free access to

foreign currency, or where multiple exchange rates may apply, and the applicable rates of exchange for Group Reporting are regularly reviewed for these

territories, with applicable exchange rates being estimated using observable data such as inflation-adjusted exchange rates or based on premiums paid to

obtain hard currency from financial institutions. The results and net assets of subsidiaries operating in these territories are not material to the Group.

The differences arising on the retranslation to sterling of Group undertakings with functional currencies other than sterling are presented as a separate

component of equity in the Translation reserve within Other reserves, as shown in note 22.They are recognised in the income statement when the gain or loss

on disposal of a Group undertaking is recognised.

Transactional foreign exchange gains and losses on the revaluation or settlement of receivables and payables are recognised in the income statement, except

when deferred in equity on intercompany net investment loans, on qualifying net investment hedges, or as qualifying cash flow hedges. Foreign exchange

gains or losses recognised in the income statement are included in profit from operations or net finance costs depending on the underlying transactions that

gave rise to these exchange differences.

In addition, for hyperinflationary countries where the effect on the Group results would be significant, the financial statements in local currency are adjusted

to reflect the impact of local inflation prior to translation into sterling, in accordance with IAS 29 *Financial Reporting in Hyperinflationary Economies*.

Where applicable, IAS 29 requires all transactions to be indexed by an inflationary factor to the balance sheet date, potentially leading to a monetary gain or

loss on indexation. The results and balance sheets of operations in hyperinflationary territories are translated at the period end rate.

**Provisions, contingent liabilities and contingent assets**

Provisions are recognised when either a legal or constructive obligation as a result of a past event exists at the balance sheet date, it is probable that an

outflow of economic resources will be required to settle the obligation and a reasonable estimate can be made of the amount of the obligation.

Subsidiaries and associate companies are defendants in tobacco-related and other litigation. These exposures are regularly reviewed on an on-going basis and

provision for this litigation (including legal costs) is made at such time as an unfavourable outcome becomes probable and the amount can be reasonably

estimated.

Contingent assets are possible assets whose existence will only be confirmed by future events not wholly within the control of the entity and are not

recognised as assets until the realisation of income is virtually certain.

Where a provision has not been recognised, the Group records its external legal fees and other external defence costs for tobacco-related and other litigation

as these costs are incurred.

As explained in note 17, certain litigation-related deposits are recognised as assets within loans and other receivables where management has determined that

these payments represent a resource controlled by the entity. These deposits are held at the fair value of consideration transferred less impairment, if

applicable, and have not been discounted.

**Taxation**

Tax is chargeable on the profits for the period, together with deferred tax. The current income tax charge is calculated on the basis of tax laws enacted or

substantively enacted at the balance sheet date in the countries where the Group's subsidiaries, associates and joint arrangements operate and generate taxable

income.

Deferred tax is determined using the tax rates that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the

related deferred tax asset is realised or deferred tax liability is settled. A deferred tax asset is recognised only to the extent that it is probable that future taxable

profits will be available against which the asset can be utilised.

British American Tobacco p.l.c. Form 20-F 2025<br>

Tax is recognised in the income statement except to the extent that it relates to items recognised in other comprehensive income or directly in equity, in which

case it is recognised in the statement of other comprehensive income or the statement of changes in equity.

The Group has exposures in respect of the payment or recovery of taxes and the financial statements reflect the probable outcome with estimated amounts

determined based on the most likely amount or the expected value, depending on which method is expected to better predict the resolution of the uncertainty.

**Equity instruments**

Instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements. Instruments that cannot

be settled in the Group's own equity instruments and that include no contractual obligation to deliver cash or another financial asset are classified as equity.

Equity instruments issued by the Group are recognised at the proceeds received, net of issuance costs.

**Goodwill**

Goodwill in respect of the acquisition of subsidiaries is included in intangible assets, net of impairment, where applicable. In respect of associates and joint

ventures, goodwill is included in the carrying value of the investment in the associated company or joint venture.

**Intangible assets other than goodwill**

The intangible assets shown on the Group balance sheet consist mainly of trademarks and similar intangibles, including certain intellectual property, acquired

by the Group's subsidiary undertakings and computer software.

Acquired trademarks and similar assets are carried at cost less accumulated amortisation and impairment. Trademarks with indefinite lives are not amortised

but are reviewed annually for impairment. Other trademarks and similar assets are amortised on a straight-line basis over their remaining useful lives,

consistent with the pattern of economic benefits expected to be received, which previously did not exceed 20 years. With effect from 1 January 2024, the

Group's previously indefinite-lived combustible trademarks and similar assets are amortised on a straight-lined basis over periods not exceeding 30 years.

The revision in useful economic life reflects the ongoing challenging macro-economic conditions and revised forecasts in the U.S., with an expected increase

in amortisation expense of £1.4 billion per annum. In addition, with effect from 1 January 2025, Camel Snus was designated as a definite-lived intangible

asset and amortised on a straight-line basis with a remaining useful economic life of 20 years, increasing the annual amortisation charge for the Group's

brands and trademarks by £22 million. The Group's other non-combustible trademarks will remain as indefinite-lived assets. Any impairments of trademarks

are recognised in the income statement, but increases in trademark values are not recognised.

Computer software is carried at cost less accumulated amortisation and impairment, and, with the exception of global software solutions, is amortised on a

straight-line basis over periods ranging from three years to five years. Global software solutions are software assets designed to be implemented on a global

basis and used as a standard solution by all of the operating companies in the Group. Historically, these assets were amortised on a straight-line basis over

periods not exceeding 13 years. With effect from 1 January 2023, global software solutions are amortised on a straight-line basis over periods not exceeding

15 years. The revision in useful life is a result of ongoing use of Global software solutions due to the extension of third-party supplier support.

**Property, plant and equipment**

Purchased property, plant and equipment are stated at cost less accumulated depreciation and impairment. Depreciation is calculated on a straight-line basis

to write off the assets over their useful economic life. Purchased freehold and leasehold property are depreciated at rates between 2.0% and 4% per annum,

and plant and equipment at rates between 5% and 25% per annum.

No depreciation is provided on freehold land or assets classified as held-for-sale. Non-current assets are classified as held-for sale if their carrying value will

be recovered principally through a sale transaction rather than through continuing use and if all of the conditions of IFRS 5 are met.

**Leased assets and lease liabilities**

The Group applies IFRS 16 *Leases* to contractual arrangements which are, or contain, leases of assets. Right-of-use assets are included as part of property,

plant and equipment in note 13, with the lease liabilities included as part of borrowings in note 23. Right-of-use lease assets are initially recognised at an

amount equal to the lease liability, adjusted for initial direct costs in relation to the assets, then depreciated over the shorter of the lease term and their

estimated useful lives. Lease liabilities are initially recognised at an amount equal to the present value of estimated contractual lease payments at the

inception of the lease, discounted using the interest rate implicit in the lease if this can be readily determined, or the applicable incremental rate of borrowing,

as appropriate.

The Group has adopted several practical expedients available under the Standard including not applying the requirements of IFRS 16 to leases of intangible

assets, and not applying the recognition and measurement requirements of IFRS 16 to leases of less than 12 months maximum duration or to leases of low-

value assets. Except for property-related leases, non-lease components have not been separated from lease components.

**Impairment of non-financial assets**

Assets are reviewed for impairment whenever events indicate that the carrying amount of a cash-generating unit may not be recoverable. In addition, assets

that have indefinite useful lives are tested annually for impairment. An impairment loss is recognised to the extent that the carrying value exceeds the higher

of the asset's fair value less costs to sell and its value-in-use.

A cash-generating unit is the smallest identifiable group of assets that generates cash flows which are largely independent of the cash flows from other assets

or groups of assets. At the acquisition date, any goodwill acquired is allocated to the relevant cash-generating unit or group of cash-generating units expected

to benefit from the acquisition for the purpose of impairment testing of goodwill.

**Retirement benefit schemes**

The Group's subsidiary undertakings operate various funded and unfunded defined benefit schemes, including pension and post-retirement healthcare

schemes, as well as defined contribution schemes in various jurisdictions.

The liabilities arising in respect of defined benefit schemes are determined in accordance with the advice of independent, professionally qualified actuaries,

using the projected unit credit method. The net deficit or surplus for each defined benefit pension scheme is calculated on the present value of the defined

benefit obligation at the balance sheet date less the fair value of the scheme assets adjusted, where appropriate, for any surplus restrictions or the effect of

minimum funding requirements.

The costs of such plans are recognised in the Group income statement within operating profit as part of employment costs. Service costs are spread

systematically over the expected service lives of employees with past service costs or credits, the impact of settlements and curtailments, and the net interest

on the net defined benefit deficit or surplus recognised in the periods in which they arise. Actuarial gains and losses and surplus restrictions are recognised

immediately in other comprehensive income.

Benefits provided through defined contribution schemes are charged as an expense in employment costs as payments fall due.

**Financial instruments**

The Group's business model for managing financial assets aims: to protect against the loss of principal, to maximise Group liquidity by concentrating cash at

the centre, to align the maturity profile of external investments with that of the forecast liquidity profile, to match the interest rate profile of external

investments to that of debt maturities or fixings wherever practicable, and to optimise the investment yield within the Group's investment parameters.

The majority of financial assets are held in order to collect contractual cash flows (typically cash and cash equivalents and loans and other receivables), but

some assets (typically investments) are held for investment potential.

British American Tobacco p.l.c. Form 20-F 2025<br>

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the relevant instrument and

derecognised when it ceases to be a party to such provisions due to expiry, cancellation or payment. Financial liabilities extinguished by payment are

derecognised when funds are received by the counterparty.

**Non-derivative financial assets** are classified on initial recognition in accordance with the Group's business model as investments, loans and receivables, or

cash and cash equivalents and accounted for as follows:

–Investments: these are non-derivative financial assets that cannot be classified as loans and other receivables or cash and cash equivalents. Dividend and

interest income on these investments are included within finance income when the Group's right to receive payments is established. This category includes

financial assets at fair value through profit and loss and financial assets at fair value through other comprehensive income.

–Loans and other receivables: these are non-derivative financial assets with fixed or determinable payments that are solely payments of principal and interest

on the principal amount outstanding, that are primarily held in order to collect contractual cash flows. These balances are measured at amortised cost, using

the effective interest rate method, and stated net of allowances for credit losses, and include trade and other receivables, and deposits with banks and other

financial institutions which cannot be classified as cash and cash equivalents. In addition, as explained in note 17, certain litigation related deposits are

recognised as assets within loans and other receivables where management has determined that these payments represent a resource controlled by the entity

as a result of past events. These deposits are held at the fair value of consideration transferred less impairment, if applicable, and have not been discounted.

–Cash and cash equivalents: cash and cash equivalents include cash in hand and deposits held on call, together with other short-term highly liquid

investments including investments in certain money market funds.

Fair values for quoted investments are based on observable market prices. If there is no active market for a financial asset, the fair value is established by

using valuation techniques principally involving discounted cash flow analysis.

**Non-derivative financial liabilities**, including borrowings and trade payables, are stated at amortised cost using the effective interest method. For

borrowings, their carrying value includes accrued interest payable, as well as unamortised issue costs. Drawdowns and repayments of short-term borrowings

which have a maturity period of three months or less are stated net in the cash flow statement; drawdowns and repayments on all other borrowings are stated

gross in the cash flow statement. Current liabilities include amounts where the entity does not have an unconditional right to defer settlement of the liability

for at least 12 months after the balance sheet date. As shown in note 23, certain borrowings are subject to fair value hedges, as defined below.

**Derivative financial assets and liabilities** are initially recognised, and subsequently measured, at fair value, which includes accrued interest receivable and

payable where relevant. Changes in their fair values are recognised as follows:

–for derivatives that are designated as cash flow hedges, the changes in their fair values are recognised directly in other comprehensive income, to the extent

that they are effective, with the ineffective portion being recognised in the income statement. Accumulated gains and losses are reclassified to the income

statement in the same periods as the hedged item, unless the hedged item results in a non-financial asset where the accumulated gains and losses are

included in the initial carrying value of the asset (basis adjustment);

–for derivatives that are designated as fair value hedges, the carrying value of the hedged item is adjusted for the fair value changes attributable to the risk

being hedged, with the corresponding entry being made in the income statement. The changes in fair value of these derivatives are also recognised in the

income statement;

–for derivatives that are designated as hedges of net investments in foreign operations, the changes in their fair values are recognised directly in other

comprehensive income, to the extent that they are effective, with the ineffective portion being recognised in the income statement. Where non-derivatives

such as foreign currency borrowings are designated as net investment hedges, the relevant exchange differences are similarly recognised. The accumulated

gains and losses are reclassified to the income statement when the foreign operation is disposed of; and

–for derivatives that do not qualify for hedge accounting or are not designated as hedges, the changes in their fair values are recognised in the income

statement in the period in which they arise. These are referred to as 'held-for-trading'.

In order to qualify for hedge accounting, the Group is required to demonstrate an assessment of the economic relationship between the item being hedged and

the hedging instrument, which shows that the hedge will be highly effective on an ongoing basis. This effectiveness testing is re-performed periodically to

ensure that the hedge has remained, and is expected to remain, highly effective. Hedge accounting is discontinued when a hedging instrument is derecognised

(e.g. through expiry or disposal), or no longer qualifies for hedge accounting. Where the hedged item is a highly probable forecast transaction, the related

gains and losses remain in equity until the transaction takes place, when they are reclassified to the income statement in the same manner as for cash flow

hedges as described above. When a hedged future transaction is no longer expected to occur, any related gains and losses, previously recognised in other

comprehensive income, are immediately reclassified to the income statement.

Derivative fair value changes recognised in the income statement are either reflected in arriving at profit from operations (if the hedged item is similarly

reflected) or in finance costs.

**Impairment of financial assets held at amortised cost**

Loss allowances for expected credit losses on financial assets which are held at amortised cost are recognised on initial recognition of the underlying asset.

As permitted by IFRS 9 *Financial Instruments*, loss allowances on trade receivables arising from the recognition of revenue under IFRS 15 *Revenue from* 

*Contracts with Customers* are initially measured at an amount equal to lifetime expected losses. Allowances in respect of loans and other receivables are

initially recognised at an amount equal to 12-month expected credit losses. Allowances are measured at an amount equal to the lifetime expected credit losses

where the credit risk on the receivables increases significantly after initial recognition.

**Revenue**

Revenue principally comprises sales of cigarettes, other tobacco products, and nicotine products, to external customers. Revenue excludes duty, excise and

other taxes related to sales in the period and is stated after deducting rebates, returns and other similar discounts and payments to direct and indirect

customers.

For the vast majority of the Group's sales, revenue is recognised when control of the goods is transferred to a customer at a point in time; this is usually

evidenced by a transfer of the significant risks and rewards of ownership upon delivery to the customer, which in terms of timing is not materially different to

the date of shipping. The Group's e-commerce sales include revenue arising from subscriptions where revenue is allocated to each component of the

subscription, with revenue recognised as each component is delivered to the customer. The Group's e-commerce sales are not material to the Group's results.

**Inventories**

Inventories are stated at the lower of cost and net realisable value. Cost is based on the weighted average cost incurred in acquiring inventories and bringing

them to their existing location and condition, which will include raw materials, direct labour and overheads, where appropriate. Net realisable value is the

estimated selling price less costs to completion and sale. Tobacco inventories which have an operating cycle that exceeds 12 months are classified as current

assets, consistent with recognised industry practice.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Segmental analysis**

The Group is organised and managed on the basis of its geographic regions. These are the reportable segments for the Group as they form the focus of the

Group's internal reporting systems and are the basis used by the chief operating decision maker, identified as the Management Board, for assessing

performance and allocating resources. While the Group has clearly differentiated brands, global segmentation between a wide portfolio of brands is not part

of the regular internally reported financial information. The results of New Category products are reported as part of the results of each geographic region.

**Adjusting items**

Adjusting items are significant items of income or expense in revenue, profit from operations, net finance costs, taxation and the Group's share of the post-tax

results of associates and joint ventures which individually or, if of a similar type, in aggregate, are relevant to an understanding of the Group's underlying

financial performance because of their size, nature or incidence. In identifying and quantifying adjusting items, the Group consistently applies a policy that

defines criteria that are required to be met for an item to be classified as adjusting. These items are separately disclosed in the segmental analyses or in the

notes to the accounts as appropriate. In addition, an amendment is made in the calculation of adjusted diluted earnings per share for part of the gain or loss

recognised on the redemption of perpetual hybrid bonds.

The Group believes that these items are useful to users of the Group financial statements in helping them to understand the underlying business performance

and are used to derive the Group's principal non-GAAP measures ofadjusted profit from operations, adjusted operating margin and adjusted diluted earnings

per share, all of which are before the impact of adjusting items and which are reconciled from profit from operations and diluted earnings per share.

**Other accounting policies:**

**Share-based payments**

–The Group has equity-settled and cash-settled share-based compensation plans.

–Equity-settled share-based payments are measured at fair value at the date of grant. The fair value determined at the grant date of the equity-settled share-

based payments is expensed over the vesting period, based on the Group's estimate of awards that will eventually vest. For plans where vesting conditions

are based on total shareholder returns, the fair value at date of grant reflects these conditions, whereas earnings per share vesting conditions are reflected in

the calculation of awards that will eventually vest over the vesting period.

–For cash-settled share-based payments, a liability equal to the portion of the services received is recognised at its current fair value determined at each

balance sheet date.

–Fair value is measured by the use of the Black-Scholes option pricing model, except where vesting is dependent on market conditions when the Monte-

Carlo option pricing model is used. The expected life used in the models has been adjusted, based on management's best estimate, for the effects of non-

transferability, exercise restrictions and behavioural considerations.

**Research and development**

Research expenditure is charged to profit or loss in the year in which it is incurred. Development expenditure is charged to profit or loss in the year it is

incurred, unless it meets the recognition criteria of IAS 38 *Intangible Assets* to be capitalised as an intangible asset.

**Capitalised interest**

Borrowing costs which are directly attributable to the acquisition, construction or production of intangible assets or property, plant and equipment that takes a

substantial period of time to get ready for its intended use or sale, are capitalised as part of the cost of the asset.

**Biological Assets**

The investments in associates and joint ventures shown in the Group balance sheet include biological assets held by Organigram Global Inc. In accordance

with IAS 41 *Agriculture*, the Group measures biological assets at fair value less costs to sell up to the point of harvest, at which point this becomes the basis

for the cost of finished goods inventories after harvest with subsequent expenditures incurred on these being capitalised, where applicable, in accordance with

IAS 2 *Inventories*. Unrealised fair value gains and losses arising during the growth of biological assets are recognised immediately in the income statement.

**Dividends**

The Company pays interim quarterly dividends, and the Group recognises the interim dividend in the period in which it is paid.

**Repurchase of share capital**

When share capital is repurchased, the amount of consideration paid, including directly attributable costs, is recognised as a deduction from equity.

Repurchased shares which are not cancelled, or shares purchased for the employee share ownership trusts, are classified as treasury shares and presented as a

deduction from total equity.

**Future changes to accounting policies**

Certain changes to IFRS will be applicable to the Group financial statements in future years, but are not expected to have a material effect on reported profit

or equity or on the disclosures in the financial statements.

The replacement to IAS 1 *Presentation of Financial Statements,* which is expected to change certain aspects of the Group's reporting of the profit and loss

account, balance sheet, cash flow statement, and certain notes to the accounts, was published by the IASB on 9 April 2024 as IFRS 18 *Presentation and* 

*Disclosure in Financial Statements,* and will be implemented with effect from 1 January 2027, with retrospective application. The new Standard will

introduce additional defined subtotals within the income statement and introduce new principles for aggregation and disaggregation of financial information.

In addition, certain non-GAAP measures meeting a new definition of "management-defined performance measures" will require disclosure, explanation and

reconciliation within the audited financial statements. The Group's evaluation of the effect of adopting IFRS 18 is ongoing.

British American Tobacco p.l.c. Form 20-F 2025<br>

**2 Segmental analyses**

The chief operating decision maker, the Management Board, reviews the 'as adjusted for Canada profit from operations at constant currencies' to

evaluate segment performance and allocate resources to the overall business on a geographic region basis, including the results of New Categories

(comprising Vapour products, Heated Products and Modern Oral products), which are reported to the Management Board as part of the results of

each geographic region. The Management Board also reviews, at constant currencies, revenues on a geographic region basis.

The Group is organised into three geographic regions as follows:

–The U.S.;

–Americas and Europe (AME), comprising markets operating in Europe, Latin America and Canada; and

–Asia-Pacific, Middle East and Africa (APMEA), comprising markets operating in Asia-Pacific, Middle East, Central Asia, Caucasus and Africa.

The threegeographic regions are the reportable segments for the Group as they form the focus of the Group's internal reporting systems and are the

basis used by the Management Board for assessing performance and allocating resources. Transactions between Group subsidiaries are conducted on

arm's length terms in accordance with appropriate transfer pricing rules and Organisation for Economic Cooperation & Development (OECD)

principles. Net finance costs (comprising interest income and interest expense), share of post-tax results of associates and joint ventures and taxation

are centrally managed, and accordingly, such items are not presented by segment as they are excluded from the measure of segment profitability.

Regional Directors are responsible for delivering the operating and financial results of their Region inclusive of all product categories. Therefore, the

results of New Categories (comprising Vapour products, Heated Products and Modern Oral products) are reported to the Management Board as part

of the results of each geographic region.

However, additional information has been provided to disaggregate revenue based on product category to enable investors to better compare the

Group's business performance across periods and by reference to the Group's investment activity.

For the purposes of management reporting, and reflecting how the Management Board assesses the performance of Canada on an ongoing basis, a

charge is recognised in the Group's income statement for management accounts purposes to reflect adjusted profit from operations at constant

currencies for AME and the Group. This charge is calculated in line with the Approved Plans in Canada and is based on a percentage of ITCAN's net

income after taxes generated from all sources, excluding New Categories. This charge will continue until the aggregate settlement amount is paid.

This charge reflects the settlement agreement, being an assumed 85%of profit after interest and taxes from all sources, excluding New Categories, in

Canada, reducing in future periods in line with the settlement agreement. The Management Board believes that recognising a charge to the income

statement in the year will reflect the financial performance in Canada resulting from the decisions taken with respect to resource allocation. This

approach ensures that the economic delivery from Canada is comparable with other markets in the Group.

In respect of the U.S. region, all financial statements and financial information provided by or with respect to the U.S. business or Reynolds

American Inc. (RAI) (and/or RAI and its subsidiaries (collectively, the 'Reynolds Group')) are prepared on the basis of U.S. GAAP and constitute the

primary financial statements or financial information of the U.S. business or RAI (and/or the Reynolds Group). Solely for the purpose of

consolidation within the results of BAT p.l.c. and the BAT Group, this financial information is then converted to IFRS. To the extent any such

financial information provided in these financial statements relates to the U.S. business or RAI (and/or the Reynolds Group), it is provided as an

explanation of the U.S. business's or RAI's (and/or the Reynolds Group's) primary U.S. GAAP based financial statements and information.

The following table shows2025 revenue at 2025 rates of exchange, and 2025 revenue translated using 2024 rates of exchange. The 2024 figures are

stated at the 2024 rates of exchange.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**Revenue at** <br>**constant** <br>**rates**<br>**£m**<br>| <br>**Translation** <br>**exchange**<br>**£m**<br>| **2025**<br>**Revenue at** <br>**current rates**<br>**£m**<br>| 2024<br>Revenue at <br>current rates<br>£m<br>|
| U.S. | **11903** | **(369)** | **11534** | 11278 |
| AME | **9548** | **(239)** | **9309** | 9241 |
| APMEA | **4963** | **(196)** | **4767** | 5348 |
| **Revenue** | **26414** | **(804)** | **25610** | 25867 |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

The following table shows 2024 revenue at 2024 rates of exchange, and 2024 revenue translated using 2023 rates of exchange. The 2023 figures are stated at

the 2023 rates of exchange.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>Revenue at <br>constant <br>rates<br>£m<br>| <br>Translation <br>exchange<br>£m<br>| 2024<br>Revenue at <br>current rates<br>£m<br>| 2023<br>Revenue at <br>current rates<br>£m<br>|
| U.S. | 11592 | (314) | 11278 | 11994 |
| AME | 9764 | (523) | 9241 | 9791 |
| APMEA | 5795 | (447) | 5348 | 5498 |
| **Revenue** | 27151 | (1284) | 25867 | 27283 |

---

The following table shows 2025 profit from operations and adjusted profit from operations at 2025 rates of exchange, and 2025 adjusted profit from

operations using 2024 rates of exchange and 2025 adjusted profit from operations adjusted for Canada using 2024 rates of exchange.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | <br>**Adjusted** <br>**segment** <br>**results** <br>**adjusted for** <br>**Canada at** <br>**constant rates** <br>**£m**<br>| <br>**Canada** <br>**adjustment at** <br>**constant rates** <br>**£m**<br>| <br>**Adjusted\*** <br>**segment result** <br>**at constant** <br>**rates**<br>**£m**<br>| <br>**Translation** <br>**exchange**<br>**£m**<br>| <br>**Adjusted\*** <br>**segment result** <br>**at current** <br>**rates**<br>**£m**<br>| <br>**Adjusting\*** <br>**items**<br>**£m**<br>| **2025**<br>**Segment result** <br>**at current** <br>**rates**<br>**£m**<br>|
| U.S. | **6766** | **—** | **6766** | **(223)** | **6543** | **(1601)** | **4942** |
| AME | **3069** | **308** | **3377** | **(72)** | **3305** | **128** | **3433** |
| APMEA | **1793** | **—** | **1793** | **(69)** | **1724** | **(102)** | **1622** |
| **Profit from operations** | **11628** | **308** | **11936** | **(364)** | **11572** | **(1575)** | **9997** |
| **Net finance costs** |  |  |  |  |  |  | **(1819)** |
| **Share of post-tax results of associates and** <br>**joint ventures**<br>|  |  |  |  |  |  | **1681** |
| **Profit before taxation** |  |  |  |  |  |  | **9859** |
| **Taxation on ordinary activities** |  |  |  |  |  |  | **(2094)** |
| **Profit for the year** |  |  |  |  |  |  | **7765** |

---

**Note:**

\*The adjustments to profit from operations are explained in notes 3, 4, 6(c), 6(d), 6(g), 6(i), 6(j), 6(k) and 7.

The following table shows 2024 profit from operations and adjusted profit from operations at 2024 rates of exchange, and 2024 adjusted profit from

operations using 2023 rates of exchange and 2024 adjusted profit from operations adjusted for Canada using 2023 rates of exchange.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | <br>Adjusted <br>segment results <br>adjusted for <br>Canada at <br>constant rates<br>£m<br>| <br>Canada <br>adjustment at <br>constant rates<br>£m<br>| <br>Adjusted\* <br>segment result <br>at constant <br>rates<br>£m<br>| <br>Translation <br>exchange<br>£m<br>| <br>Adjusted\* <br>segment result <br>at current rates<br>£m<br>| <br>Adjusting\* <br>items<br>£m<br>| 2024<br>Segment result <br>at current rates<br>£m<br>|
| U.S. | 6580 |  | 6580 | (194) | 6386 | (2299) | 4087 |
| AME | 2969 | 543 | 3512 | (192) | 3320 | (6784) | (3464) |
| APMEA | 2347 |  | 2347 | (163) | 2184 | (71) | 2113 |
| **Profit from operations** | 11896 | 543 | 12439 | (549) | 11890 | (9154) | 2736 |
| **Net finance costs** |  |  |  |  |  |  | (1098) |
| **Share of post-tax results of associates and** <br>**joint ventures**<br>|  |  |  |  |  |  | 1900 |
| **Profit before taxation** |  |  |  |  |  |  | 3538 |
| **Taxation on ordinary activities** |  |  |  |  |  |  | (357) |
| **Profit for the year** |  |  |  |  |  |  | 3181 |

---

**Note:**

\*The adjustments to profit from operations are explained in notes 4, 5(d), 6(c), 6(d), 6(g), 6(h) and 6(k).

British American Tobacco p.l.c. Form 20-F 2025<br>

The following table shows 2023 loss from operations, adjusted profit from operations and adjusted profit from operations adjusted for Canada at the 2023

rates of exchange.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | <br>Adjusted <br>segment results <br>adjusted for <br>Canada <br>£m<br>| <br>Canada <br>adjustment <br>£m<br>| <br>Adjusted\* <br>segment result<br>£m<br>| <br>Adjusting\* <br>items<br>£m<br>| 2023<br>Segment result<br>£m<br>|
| U.S. | 6821 |  | 6821 | (27602) | (20781) |
| AME | 2862 | 598 | 3460 | (266) | 3194 |
| APMEA | 2184 |  | 2184 | (348) | 1836 |
| **Profit/(loss) from operations** | 11867 | 598 | 12465 | (28216) | (15751) |
| **Net finance costs** |  |  |  |  | (1895) |
| **Share of post-tax results of associates and joint ventures** |  |  |  |  | 585 |
| **Loss before taxation** |  |  |  |  | (17061) |
| **Taxation on ordinary activities** |  |  |  |  | 2872 |
| **Loss for the year** |  |  |  |  | (14189) |

---

**Note:**

\*The adjustments to profit from operations are explained in notes 3, 4, 5(c), 6(d), 6(f), 6(h), 6(j), 6(k) and 7.

**Depreciation, amortisation and impairment charges**

Adjusted profit from operations as adjusted for Canada at constant rates of exchange of £11,628 million(2024 at constant rates: £11,896 million; 2023 at

current rates:£11,867 million) excludes adjusting depreciation, amortisation and impairment charges as explained in note 4. These are excluded from

segmental adjusted profit from operations as per the table below. 2025 and 2024 are disclosed at constant rates of exchange and 2023 is disclosed at current

rates of exchange.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | <br>**Adjusted** <br>**depreciation,** <br>**amortisation** <br>**and** <br>**impairment at** <br>**constant rates**<br>**£m**<br>| <br>**Translation** <br>**exchange**<br>**£m**<br>| <br>**Adjusted** <br>**depreciation,** <br>**amortisation** <br>**and** <br>**impairment at** <br>**current rates**<br>**£m**<br>| <br>**Adjusting** <br>**items**<br>**£m**<br>| **2025**<br>**Depreciation,** <br>**amortisation** <br>**and** <br>**impairment at** <br>**current rates**<br>**£m**<br>|
| U.S. | **222** | **(5)** | **217** | **1542** | **1759** |
| AME | **282** | **(5)** | **277** | **276** | **553** |
| APMEA | **180** | **(7)** | **173** | **62** | **235** |
|  | **684** | **(17)** | **667** | **1880** | **2547** |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | <br>Adjusted <br>depreciation, <br>amortisation <br>and impairment <br>at constant rates<br>£m<br>| <br>Translation <br>exchange<br>£m<br>| <br>Adjusted <br>depreciation, <br>amortisation <br>and impairment <br>at current rates<br>£m<br>| <br>Adjusting items<br>£m<br>| 2024<br>Depreciation, <br>amortisation <br>and impairment <br>at current rates<br>£m<br>|
| U.S. | 210 | (4) | 206 | 2284 | 2490 |
| AME | 291 | (12) | 279 | 123 | 402 |
| APMEA | 160 | (11) | 149 | 60 | 209 |
|  | 661 | (27) | 634 | 2467 | 3101 |

---

---

| | | | |
|:---|:---|:---|:---|
| | <br>Adjusted <br>depreciation, <br>amortisation <br>and impairment<br>£m<br>| <br>Adjusting items<br>£m<br>| 2023<br>Depreciation, <br>amortisation <br>and impairment<br>£m<br>|
| U.S. | 218 | 27518 | 27736 |
| AME | 336 | 44 | 380 |
| APMEA | 205 | 293 | 498 |
|  | 759 | 27855 | 28614 |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

**Additional information by product category**

Although the Group's operations are managed on a Regional basis, additional information for revenue is provided based on product category as follows:

---

| | | | |
|:---|:---|:---|:---|
| Revenue | **2025**<br>**£m**<br>| 2024<br>£m<br>| 2023<br>£m<br>|
| New Categories | **3621** | 3432 | 3347 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vapour | **1542** | 1721 | 1812 |
| &nbsp;&nbsp;&nbsp;&nbsp;HP | **914** | 921 | 996 |
| &nbsp;&nbsp;&nbsp;&nbsp;Modern Oral | **1165** | 790 | 539 |
| Traditional Oral | **1043** | 1092 | 1163 |
| Combustibles | **20201** | 20685 | 22108 |
| Other | **745** | 658 | 665 |
| **Revenue** | **25610** | 25867 | 27283 |

---

External revenue and non-current assets other than financial instruments, deferred tax assets and retirement benefit assets are analysed between the UK and

all foreign countries at current rates of exchange as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | United Kingdom | United Kingdom | United Kingdom | All foreign countries | All foreign countries | All foreign countries | Group | Group | Group |
| Revenue is based on location of sale | **2025**<br>**£m**<br>| 2024<br>£m<br>| 2023<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>| 2023<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>| 2023<br>£m<br>|
| External revenue | **268** | 254 | 255 | **25342** | 25613 | 27028 | **25610** | 25867 | 27283 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | United Kingdom | United Kingdom | All foreign countries | All foreign countries | Group | Group |
| | **2025**<br>**£m**<br>| 2024<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>|
| Intangible assets | **442** | 417 | **86492** | 93859 | **86934** | 94276 |
| Property, plant and equipment | **272** | 265 | **4211** | 4114 | **4483** | 4379 |
| Investments in associates and joint ventures | **—** |  | **1521** | 1902 | **1521** | 1902 |

---

The consolidated results of the Reynolds Group operating in the U.S. met the criteria for separate disclosure under the requirements of IFRS 8 *Operating* 

*Segments*. Revenue arising from the operations of the Reynolds Group, inclusive of the sales made to fellow Group companies, in 2025, 2024 and 2023, was

£11,649 million, £11,302 million and £11,985 million, respectively. The majority of sales are to customers based in the U.S. Non-current assets attributable

to the operations of the Reynolds Group were £78,442 million (2024: £85,843 million).

The main acquisitions comprising the goodwill balance of £38,917 million (2024: £41,129 million), included in intangible assets, are provided in note 12.

Included in investments in associates and joint ventures are amounts of £1,348 million (2024: £1,762 million) attributable to the investment in ITC Ltd.

Further information is provided in notes 9 and 14.

**3 Employee benefit costs**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Note | **2025**<br>**£m**<br>| 2024<br>£m<br>| 2023<br>£m<br>|
| Wages and salaries |  | **2629** | 2424 | 2263 |
| Social security costs |  | **240** | 218 | 219 |
| Other pension and retirement benefit costs | 15 | **166** | 115 | 108 |
| Share-based payments - equity and cash-settled | 28 | **90** | 74 | 74 |
|  |  | **3125** | 2831 | 2664 |

---

In 2025, included within employee benefit costs are expenses in relation to the Group's restructuring initiatives of £26 million, as explained in note 7, and an

adjusting charge of £28 million representing a premium on a buy-out transaction in the UK, as explained in note 15.

In 2023, included within employee benefits costs is a credit of £26 million in relation to the Group's restructuring initiatives, as explained in note 7.

**4 Depreciation, amortisation and impairment costs**

---

| | | | |
|:---|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>| 2023<br>£m<br>|
| Intangibles – amortisation and impairment of trademarks and similar intangibles | **1610** | 2298 | 23232 |
| – amortisation and impairment of computer software | **116** | 129 | 125 |
| – impairment of goodwill | **277** | 39 | 4614 |
| Property, plant and equipment - depreciation and impairment | **544** | 635 | 643 |
|  | **2547** | 3101 | 28614 |

---

Enumerated below are movements in costs that have impacted depreciation, amortisation and impairment in 2025, 2024 and 2023. These include changes in

the Group's underlying business performance, as well as impact of adjusting items, as defined in note 1.

**Intangibles – amortisation and impairment of trademarks and similar intangibles**

Acquisitions have resulted in the capitalisation of trademarks and similar intangibles, including those which are amortised over their expected useful lives,

which do not exceed 30 years. As mentioned in note 12, the amortisation and impairment of these acquired trademarks and similar intangibles are charged to

the income statement of which the adjusting element is £1,584 million (2024: £2,279 million; 2023: £23,202 million).

**Impairment of goodwill**

The impairment of goodwill is charged to the income statement as adjusting.

British American Tobacco p.l.c. Form 20-F 2025<br>

The Group impaired£277 million of goodwill in Canada, Peru and Malaysia during 2025 and £39 million of goodwill in Malaysia during 2024, as explained

in notes 12(e)(v) and 12(e)(vii).

During 2023, the Group impaired £4,614 million of goodwill in the U.S., South Africa and Peru.

**Property, plant and equipment – depreciation and impairment**

The following items are included within depreciation and impairment of property, plant and equipment:

–In 2025, restructuring and related depreciation costs were a net charge of £19 million, including a charge of £21 million in relation to the Dhaka factory

closure and a charge of £14 million for accelerated depreciation in relation to the Heidelberg factory in South Africa, which is proposed to be closed in

2026. This was partially offset by the reversal of part of the impairment for machinery in Reynolds American companies recognised in 2023 as it was

determined a portion of the machinery that was impaired would be put back into production as a result of manufacturing footprint changes. The value of

this reversal was £16 million. All items have been treated as adjusting items, as mentioned in note 7.

–In 2024, an impairment charge of £75 million in respect of the Group's head office in London, as well as a £74 million impairment charge of fixed assets

in relation to the Group's intention to seek an orderly exit from Cuba, were recognised. These have been treated as an adjusting item.

–In 2023, restructuring related depreciation and impairment costs were a net charge of £39 million. It included an impairment of £46 million for machinery

in Reynolds American Companies due to the adverse impact from macro-economic headwinds and industry volume declines in the U.S., which was

partially offset by depreciation and impairment costs and reversals resulting from obsolete machines in relation to downsizing and factory rationalisation.

These were treated as adjusting, as mentioned in note 7; and

–Gains and losses recognised on disposal of property, plant and equipment.

**5 Other operating income**

Other operating income of £192 million (2024: £340 million; 2023: £432 million) comprises income that is associated with the Group's normal activities, but

which falls outside the definition of revenue and includes gains on one-off transactions, such as capital profits arising from the disposals of fixed assets,

recoveries of indirect taxation and levies paid, litigation settlement received and transfers of trademark rights.

**(a) Global strategic partnership**

On 30 July 2025, the Group announced that it had entered into a global strategic partnership with Accenture. At the same time, a similar agreement was

entered into with System Limited for support services in Pakistan. The partnership will transfer certain activities and functions of the Group's shared services

(GBS) to Accenture and Systems Limited as Business Process Outsourcers under a sale and asset purchase agreement (SAPA) with the Group subsequently

obtaining the provision of similar support services under a 10-year Master Service Agreement to enable the Group to continue its current operations without

interruption. The transfer is being implemented in two waves. The first wave occurred in November 2025 with the transfer of c.1,000 roles, while the second

wave will take place in the first half of 2026 with the anticipated transfer of c.2,000 roles. The majority of roles transferred were on the basis of continuing

employment terms. Included in other operating income above is a gain of £35 million in relation to services transferred to the Business Process Outsourcers

in the first wave as part of the SAPA. The gain is stated net of the impact of the Group disposing of two GBS entities in Mexico and Pakistan.

**(b) Sale and leaseback**

In 2024, the Group recognised £34 million of gains arising from sale and leaseback transactions on excess offices and warehousing capacity in Singapore and

Nigeria. Consideration received for the Nigeria transaction included an investment in a property management vehicle, Rising Sun Partners LP, as mentioned

in note 18.

In 2023, the Group recognised £15 million of gains arising from a sale and leaseback transaction on excess warehousing capacity in Argentina.

**(c) Brazil tax matters**

In 2023, in Brazil, £150 million of income was recognised in respect of excise on social contributions, as well as £19 million in respect of historical VAT on

social contributions in Brazil. Both items were treated as adjusting items.

**(d) Other**

In 2025, an income of £24 million has been recognised in respect of the sale of the investment in Surya Nepal Pvt. Limited and brand rights in certain

jurisdictions to ITC, as mentioned in note 30.

In addition, in 2025, £22 million (2024: £28 million; 2023: £85 million) of income has been recognised in respect of the transfer of non-strategic trademark

rights, which had not previously been capitalised, to third parties.

In 2024, a credit of £132 million has been recognised in respect of the settlement of historical litigation related to the Fox River in the U.S. This has been

treated as an adjusting item.

British American Tobacco p.l.c. Form 20-F 2025<br>

**6 Other operating expenses**

**(a) Items included within other operating expenses**

The following items are included within other operating expenses:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Notes | **2025**<br>**£m**<br>| 2024<br>£m<br>| 2023<br>£m<br>|
| **Other operating expenses** |  | **5895** | 13093 | 7538 |
| The following items are included within other operating expenses: |  |  |  |  |
| Master Settlement Agreement and State Settlement Agreements | 6(b),(d) | **1543** | 1689 | 2023 |
| The Approved Plans in Canada\* | 6(c) | **(708)** | 6203 |  |
| Charges in respect of compliance with the Approved Plans in Canada\* | 6(c) | **3** |  |  |
| Inventory write-offs | 20 | **217** | 134 | 250 |
| Research and development expenses (excluding employee benefit costs and <br>depreciation)<br>| 6(e) | **133** | 174 | 181 |
| Loss on disposal of businesses\* | 6(f) | **—** |  | 546 |
| Partial disposal of shares in ITC\* | 6(g) | **3** | 6 |  |
| Charges in respect of DOJ and OFAC investigation\* | 6(h) | **—** | 4 | 75 |
| Losses in Ukraine due to escalation of Russian offensive\* | 6(i) | **39** |  |  |
| Charges/(reversals) in respect of assets held-for-sale\* | 6(j) | **235** |  | (195) |
| (Credits)/ charges in respect of Romania and Brazil other taxes\* | 6(k) | **(15)** | 449 | 49 |
| Marketing costs in operating expenses | 6(l) | **1092** | 1111 | 1152 |
| Exchange differences |  | **13** | 11 | 17 |
| Hedge ineffectiveness within operating profit |  | **11** | 5 | (12) |
| Expenses relating to short-term leases |  | **8** | 8 | 13 |
| Expenses relating to leases of low-value assets |  | **1** | 1 | 1 |
| Auditor's remuneration | 6(m) | **31** | 30 | 29 |

---

**Note:**

\*Recognised and reported as an adjusting item. In addition to these captions, as set out in note 6(d), certain litigation costs are treated as adjusting items.

Sustainability costs are included in other operating expenses and reported in a separate note, refer to note 33 for further information.

**(b) Master Settlement Agreement and State Settlement Agreements**

In 1998, the major U.S. cigarette manufacturers (including the R.J. Reynolds Tobacco Company, Lorillard and Brown & Williamson, businesses which are

now part of the Reynolds Group) entered into the Master Settlement Agreement (MSA) with attorneys general representing most U.S. states and territories.

The MSA imposes a perpetual stream of future payment obligations on the major U.S. cigarette manufacturers. The amounts of money that the participating

manufacturers are required to annually contribute are based upon, amongst other things, the volume of cigarettes sold and market share (based on cigarette

shipments in that year). The MSA has been subject to certain adjustments since 1998, including agreements related to the Non-Participating Manufacturer

(NPM) adjustment under the MSA reached with various U.S. states between 2012 and 2025.

The amounts payable by Group companies under the arrangement accrue as and when shipments of tobacco products are made. Adjustments to amounts due in

relation to past payments are typically received in the form of credits offsettable only against current or future performance obligations. Credits in respect of

future years' payments and the NPM adjustment claims would be accounted for in the applicable year and will not be treated as adjusting items. Only credits in

respect of prior year payments are included as adjusting items.

The charge in each reporting period and the cashflow impact in the same period are not directly related, as the MSA is generally settled once a year in April of

the following year.

The BAT Group is subject to substantial payment obligations under the MSA and the state settlement agreements (SSA) with the States of Mississippi, Florida,

Texas and Minnesota (such settlement agreements, collectively State Settlement Agreements). Reynolds Group's operating subsidiaries' expenses and

payments under the MSA and the State Settlement Agreements for 2025 amounted to US$2,037 million (2024: US$2,160 million; 2023: US$2,516 million) in

respect of settlement expenses net of credits and US$2,140 million (2024: US$2,535 million; 2023: US$2,874 million) in respect of settlement cash payments.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | Note | **US$m** | **2025**<br>**£m**<br>| US$m | 2024<br>£m<br>| US$m | 2023<br>£m<br>|
| **Opening MSA and SSA liability** | 25 | **1904** | **1520** | 2279 | 1788 | 2637 | 2193 |
| Settlement expense | 31 | **2037** | **1543** | 2160 | 1689 | 2516 | 2023 |
| Cash paid | 31 | **(2140)** | **(1622)** | (2535) | (1983) | (2874) | (2311) |
| Difference on exchange |  | **—** | **(103)** |  | 26 |  | (117) |
| **Closing MSA and SSA liability** | 25 | **1801** | **1338** | 1904 | 1520 | 2279 | 1788 |

---

***Non-Participating Manufacturer adjustments***

Beginning in 2012, R.J. Reynolds Tobacco Company, Santa Fe Natural Tobacco Company (SFNTC), various other tobacco manufacturers, 17 states, the

District of Columbia and Puerto Rico reached an agreement related to the Non-Participating Manufacturer (NPM) adjustment under the MSA. Under this

agreement and its successor agreement executed in 2017 referred to as the 'NPM Adjustment Settlement Agreement', additional states have subsequently

joined and R.J. Reynolds Tobacco Company has received credits of more than US$1 billion in respect of its NPM adjustment claims related to various states

over certain periods.

Under these agreements, R.J. Reynolds Tobacco Company reached agreements to settle disputes with newly joining states, including (for the years 2022-2025)

the following:

- In 2022, resulting in a credit of US$130 million for settled periods through 2018, over a five-year period from 2022;

- In 2023, resulting in an estimated credit of US$29 million for settled periods through 2018, over a five-year period from 2024;

British American Tobacco p.l.c. Form 20-F 2025<br>

- In 2024, resulting in an estimated credit of US$11 million for settled periods through 2018, over a five-year period from 2024 and an estimated credit of

US$69 million for settled periods through 2011, over a five-year period from 2026; and

- In 2025, resulting in an estimated credit of US$99 million for settled periods through 2019, over a five-year period from 2025.

In 2023, 2024 and 2025, R.J. Reynolds Tobacco Company received total credits (including applicable credits described above) of US$224 million,

US$224 million and US$285 million, respectively, under all respective settlement agreements.

***State Settlement Agreements***

In 2020, R.J. Reynolds Tobacco Company recognised additional expenses under the state settlement agreements in the States ofMississippi, Florida, Texas

and Minnesota. R.J. Reynolds Tobacco Company recognised US$241 million of expense for payment obligations to the State of Florida for the ITG Brands,

LLC acquired brands from the date of divestiture, 12 June 2015, as a result of anunfavourable judgment. In addition, R.J. Reynolds Tobacco Company

recognised US$264 million related to the resolution of claims against it in the States of Texas, Minnesota and Mississippi for payment obligations to those

states for the ITG Brands, LLC acquired brands from the date of divestiture. Finally, R.J. Reynolds Tobacco Company settled certain related claims with

Phillip Morris USA underthe state settlement agreements in the states of Mississippi, Texas and Minnesota for US$8 million. During 2021, an additional

US$17 million expense was recognised in relation to the final resolution of the Texas and Minnesota claims. Additional information related to the resolution

of these claims is included in note 31. In 2022, R.J. Reynolds Tobacco Company recognised US$37 million inadditional expenses related to a settlement

with Philip Morris USA resolving prior operating profit disputes under the MSA related tothe ITG Brands, LLC acquired brands. In 2025, R.J. Reynolds

Tobacco Company recognisedUS$44 million in additional expenses related to a settlement with the State of Mississippi resolving prior operating profit

disputes.

**(c) The Approved Plans in Canada**

In March 2019, Imperial Tobacco Canada Limited and Imperial Tobacco Company Limited (together, ITCAN), Group subsidiaries, obtained creditor

protection under the Canadian Companies' Creditors Arrangement Act (CCAA). Under a confidential court supervised mediation process, ITCAN began

negotiating a possible settlement of all of its outstanding tobacco litigation in Canada while continuing to run its business in the normal course.

On 17 October 2024, ITCAN's court-appointed mediator and monitor filed a proposed plan of compromise and arrangement in the Ontario Superior Court of

Justice. Substantially similar proposed plans were also filed for Rothmans, Benson & Hedges Inc. ((RBH) a subsidiary of Philip Morris International Inc.)

and JTI-Macdonald Corp. ((JTIM) a subsidiary of Japan Tobacco International) (collectively, the Proposed Plans).

On 31 October 2024, the court granted certain orders pursuant to which the Proposed Plans were accepted for filing. On 12 December 2024, the Proposed

Plans were approved by the requisite majorities of the creditors.

The Proposed Plans would require ITCAN, RBH and JTI to collectively pay an aggregate settlement amount ofCAD$32.5 billion (£17.6 billion at 31

December 2025 rate of exchange). This amount would be funded by:

–an upfront payment equal to all the Companies' cash and cash equivalents on hand (including investments held at fair value) plus certain court deposits

(subject to an aggregate industry holdback of CAD$750 million (£407 million)) plus 85% of any cash tax refunds that may be received by the Companies

on account of the upfront payments; and

–annual payments based on a percentage (initially 85%, reducing over time) of each of the Companies' net income after taxes, based on amounts generated

from all sources, excluding New Categories, until the aggregate settlement amount is paid. The performance of ITCAN's New Categories (including

vapour products and nicotine pouches) is not included in the basis for calculating the annual payments.

A provision of £6,203 million was recognised in 2024 in relation to the above liabilities and included in other operating expenses as an adjusting item.

During the sanction hearing, the court was asked to sanction the Proposed Plans. Motions for orders to amend elements of the Proposed Plans were presented

on 27 February 2025. The requested amendments to the Proposed Plans resulted in allocating the cash holdback of CAD$750 million from the upfront

payment to RBH. On 3 March 2025, the court approved that the Proposed Plans be amended accordingly (the Amended Plans).

On 6 March 2025, the court sanctioned the Amended Plans, herein referred to as the Approved Plans. The Approved Plan for ITCAN resolves all Canadian

tobacco litigation and provides a full and comprehensive release to ITCAN, BAT p.l.c. and all related companies for all past, present and future tobacco

claims in Canada.

Under the Approved Plans, ITCAN is required to make annual payments based on a percentage of net income after tax generated from all sources, excluding

New Categories, until the aggregate settlement amount is paid. During 2025, based on revisions to the provision, £708 millionwas credited to the income

statement as an adjusting item (see note 24). In addition, ITCAN incurred charges of £3 million in respect of compliance with its Approved Plan in Canada.

**(d) Litigation costs**

Included in other operating expenses and reported in various accounts based on the nature of the expense are costs that are collectively analysed as litigation

costs. Certain litigation costs are reported as adjusting items and predominantly relate to health-related claims, including Engle progeny. These litigation costs

were £63 million (2024: £157 million; 2023: £96 million). Included in 2025 is a NPM credit of £17 millionrecognised for the settlement with the state of

Washington, a credit of £16 million for the settlement with the state of Massachusetts and a credit of£19 million recognised in relation to the Missouri portion

of the 2004 NPM adjustment award.

In 2024, a NPM credit of £2 million was recognised for the settlement with the state of Idaho and a credit of £18 million was recognised in relation to the

Washington portion of the 2004 NPM adjustment award.

In 2023,anNPM credit of £6 million was recognised for the settlement with the state of Iowa.

**(e) Research and development**

Total research and development costs, including employee benefit costs and depreciation, are £358 million (2024: £380 million; 2023: £408 million).

**(f) Loss on disposal of businesses**

***BAT Russia and BAT Belarus***

On 13 September 2023, the Group disposed of its Russian and Belarusian businesses in compliance with international and local laws. The Group had two

subsidiaries in Russia (BAT Russia), being JSC British American Tobacco-SPb and JSC 'International Tobacco Marketing Services', and one subsidiary in

Belarus, International Tobacco Marketing Services BY. As explained in note 27(d)(ii), net held-for-sale assets of £770 million were disposed of for proceeds

of £425 million, with an impairment charge of £345 million recorded at that time.

As discussed in note 6(j), the impairment charge recognised in 2022 of £554 million (net of £14 million utilised during the year) was reversed and offset by

the above mentioned £345 million recorded at the date of sale, with a net reversal of impairment recognised of £195 million.

The loss on disposal of businesses included within other operating expenses and recognised as an adjusting item in 2023 was a charge of £548 million and

included £554 million of foreign exchange reclassified from other comprehensive income (note 22(c)(i)) and associated costs of £3 million partially offset by a

realised foreign exchange gain on the proceeds received of £9 million.

The total net impact after the partial reversal and loss on disposal recognised in 2023 was therefore £353 million.

British American Tobacco p.l.c. Form 20-F 2025<br>

***BAT Pars***

On 6 August 2021, the Group disposed of its Iranian subsidiary, B.A.T. Pars Company PJSC (BAT Pars). In 2023, a credit of £2 million arising from the

revaluation of the deferred proceeds receivable was recognised within other operating expenses as an adjusting item.

**(g) Partial disposal of shares in ITC**

On 28 May 2025, the Group announced the divestment of 10% (2024: 12% divested on 13 March 2024) of its equity stake in ITC Limited (ITC). Income and

expenses associated with the divestment of these shares have been recognised as adjusting items within the relevant financial statement caption. Included

within other operating expenses is £3 million (2024: £6 million) of foreign exchange losses arising from the conversion of the net proceeds from Indian rupee

to sterling which were repatriated to the UK in a series of foreign exchange transactions in the days following the sale. Refer to note 27(b)(i) for further

details.

**(h) Charges in respect of DOJ and OFAC investigations**

On 25 April 2023, the Group announced that it had reached an agreement with the DOJ and OFAC to resolve previously disclosed investigations into

suspicions of sanctions breaches. These concerned business activities relating to the Democratic People's Republic ofKorea between 2007 and 2017. The

Company entered into a three-year deferred prosecution agreement (DPA) with the DOJ and a civil settlement agreement with OFAC. The DOJ's charges

against the Company - one count of conspiring to commit bank fraud and one count of conspiring to violate sanctions laws - were filed and will later be

dismissed if the Company abides by the terms of the DPA. Inaddition, a BAT subsidiary in Singapore, British-American Tobacco Marketing (Singapore)

Private Limited, pleaded guilty to the same charges. The total amount payable to the U.S. authorities was US$635 million plus interest.

Having recognised an initial provision of £450 million (US$540 million) in 2022, the Group recognised additional charges of £75 million in 2023 and

£4 million in 2024. All charges were included within other operating expenses and recognised as adjusting items.

**(i) Losses in Ukraine due to escalation of Russian offensive**

On 5 October 2025, an intensification of Russian missile and drone attacks into Western Ukraine resulted in the destruction of a warehouse in the Lviv Oblast

region, which was operated by a third-party logistics supplier of LLC British American Tobacco Sales and Marketing Ukraine (BAT Ukraine). A portion of

BAT Ukraine's finished goods inventory was stored in the warehouse and was lost in the incident with a total inventory value of £39 million. In this context,

the Group has recognised a charge in 2025 of £39 millionwithin other operating expenses, as an adjusting item.

**(j) Charges/(reversals) in respect of assets held-for-sale**

***Brascuba***

On 19 December 2025, the Group entered into an agreement to sell its 50% shareholding in Brascuba Cigarrillos S.A. (Brascuba) to Tabagest S.A., a

company incorporated in the Republic of Cuba and an existing investor in Brascuba.

In accordance with IFRS 5 *Non-current Assets Held for Sale and Discontinued Operations*, the assets and liabilities of Brascuba have been classified as held-

for-sale at 31 December 2025 and presented as such on the balance sheet at an estimated fair value less costs to sell. An impairment charge of £231 million

and associated costs of £4 million have been recognised in other operating expenses as adjusting items. Refer to note 27(d)(i) for further details.

***BAT Russia and BAT Belarus***

On 11 March 2022, the Group announced the intention to transfer its Russian business in full compliance with international and local laws. Atthat time, the

Group had two subsidiaries in Russia (BAT Russia), being JSC British American Tobacco-SPb and JSC International Tobacco Marketing Services. In

September 2023, the Group formally entered into an agreement to sell the Group's Russian and Belarusian businesses to a consortium led by then members of

BAT Russia's management team, in compliance with local and international laws. As previously announced, due to operational dependencies between BAT

Russia and the Group's subsidiary in Belarus (International Tobacco Marketing Services BY) (BAT Belarus), the Belarusian business was included in the sale.

The transaction was completed on 13 September 2023 and, since completion, the buyer consortium has wholly owned both businesses. These businesses arenow

known as the ITMS Group.

In accordance with IFRS 5 *Non-current Assets Held For Sale and Discontinued Operations*, the assets and liabilities of these subsidiaries were classified as

held-for-sale at 31 December 2022 and presented as such on the balance sheet at an estimated fair value less costs to sell. An impairment charge of

£554 million (and associated costs of £58 million) was recognised in other operating expenses as adjusting items in 2022. During 2023, the previously

recognised impairment was reversed (net of £14 million impairment utilised), offset by the net £345 million (being the impairment arising on disposal of

£770 million net assets for sales proceeds of £425 million). This resulted in a net partial reversal of £195 million. This has been treated as a non-cash

adjusting item. Further information on the sale of the Russian and Belarusian businesses can be found in note 6(f) and note 27(d)(ii).

**(k) Romania and Brazil other taxes**

***BAT Romania***

On 5 November 2024, British-American Tobacco (Romania) Investment S.R.L. (BATRI) was issued with a final assessment by the Romanian tax authority in

respect of an excise audit of activities undertaken in the Ploiesti factory during the period January 2017 to February 2023. On 12 November 2024, BATRI paid

the assessed amount under the provisions of Ordinance 107/2024, which provides for cancellation of past and ongoing penalties, interest, and surcharges

(ancillary obligations) if the principal amount is paid in full. The ancillary obligations have been duly cancelled. BATRI has filed an administrative appeal with

the Romanian Tax Authority in respect of the findings of the audit and in June 2025 received a negative decision. In December 2025, BATRI filed a judicial

appeal to the Ploiesti Court of Appeal. Additionally, after filing the judicial appeal, BATRI filed a separate challenge against the Romanian Government in

respect of the lawfulness of certain Romanian statutory excise instruments.

In 2024, the Group recognised a charge of £449 million inother operating expenses as an adjusting item, of which £390 million was paid in 2024 and a provision

recognised for the remaining £59 million. During 2025, £8 million of the provision was released against actual costs incurred and a further £15 million was

released as a credit to other operating expenses as an adjusting item, resulting in a remaining provision of £36 million. Refer to note 24.

***BAT Brazil***

Since 2017, Souza Cruz LTDA (BAT Brazil) has been involved in a legal case over whether a 10% tax imposed on a tax benefit associated with investment

grants by the Rio de Janeiro State was constitutional. In October 2023, the Supreme Court concluded on the leading case's trial, recognising that the tax was

constitutional. This decision has binding effects on all taxpayers. BAT Brazil's individual lawsuit has not yet concluded. However, given the decision in the

leading case, in 2023, £47 million was recognised in other operating expenses, as an adjusting item, to reflect the probability of an unfavourable decision. Out

of the £47 million, £40 million was reported as provisions (note 24) and £7 million was reported as trade and other payables.

In addition, in 2023, a charge of £2 million has been recognised in other operating expenses, as an adjusting item, in respect of social contributions relating to

the Brazil excise case, as mentioned in note 5(c).

British American Tobacco p.l.c. Form 20-F 2025<br>

**(l) Marketing costs in operating expenses**

Certain marketing activities, such as discounts or allowances provided to customers, are required to be deducted from revenue as explained in note 1. Other

marketing expenses, such as point of sale and promotional materials, media advertising and sponsorship, andconsumer research, are reported as operating

expenses and have been shown in the table above.

**(m) Auditor's remuneration**

---

| | | | |
|:---|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>| 2023<br>£m<br>|
| **Auditor's remuneration** |  |  |  |
| Total expense for audit services : |  |  |  |
| - fees to KPMG LLP for Parent Company and Group audit | **9.0** | 12.0 | 11.4 |
| - fees to KPMG LLP and associates for audit of the accounts of subsidiaries | **13.2** | 9.6 | 9.4 |
| Total audit fees expense - KPMG LLP and associates | **22.2** | 21.6 | 20.8 |
| Audit fees expense to other firms | **0.1** | 0.1 | 0.2 |
| **Total audit fees expense** | **22.3** | 21.7 | 21.0 |
| **Fees to KPMG LLP and associates for other services:** |  |  |  |
| –audit related assurance services | **7.1** | 6.8 | 6.9 |
| –other assurance services | **1.4** | 0.7 | 0.9 |
| –tax advisory services | **—** |  |  |
| –tax compliance | **—** |  |  |
| –audit of defined benefit schemes | **0.1** | 0.3 | 0.2 |
| –other non-audit services | **—** |  |  |
|  | **8.6** | 7.8 | 8.0 |

---

The total auditor's remuneration to KPMG LLP and associates included above are £30.8 million (2024: £29.4 million; 2023: £28.8 million).

Under SEC regulations, the remuneration to KPMG LLP and associates of £30.8 million in 2025 (2024: £29.4 million; 2023: £28.8 million) isrequired to be

presented as follows: audit fees £30.0 million (2024: £28.4 million; 2023: £27.7 million), audit related fees £0.1 million (2024: £0.3 million; 2023:

£0.2 million), tax fees nil (2024: nil; 2023: nil) and all other fees £0.7 million (2024: £0.7 million; 2023: £0.9 million). Audit related fees are in respect of

services provided to associated pension schemes. All other fees are in respect of other assurance services, including those provided over information derived

from the financial information systems subject to audit.

**7 Restructuring costs**

Restructuring costs represent additional expenses incurred that are not related to the normal business and day-to-day activities. In 2025, the Group

commenced the Fit2Win programme, a structured time-bound programme to review processes, ways of working including use of data and automation, route

to market, overhead costs and organisational design. The programme will deliver efficiencies and facilitate faster, more agile and effective decision-making.

Until 2023, restructuring costs were associated with Quantum, a programme focused on a review of the Group's organisational structure that simplified the

business to create a more efficient, agile and focused company. The costs of the Group's initiatives are included in profit from operations under the following

headings:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Notes | **2025**<br>**£m**<br>| 2024<br>£m<br>| 2023<br>£m<br>|
| Employee benefit costs | 3 | **26** |  | (26) |
| Depreciation, amortisation and impairment costs | 4 | **19** |  | 39 |
| Other operating expenses |  | **21** |  | (15) |
|  |  | **66** |  | (2) |

---

The adjusting charge reported in employee benefit costs in 2025 includes the cost of employee packages in respect of Fit2Win.

In January 2026, the Group announced its intention to close the Heidelberg factory in South Africa and end domestic production in South Africa by the end of

2026. The depreciation, amortisation and impairment costs in 2025 include a £14 million charge related to the accelerated depreciation of the plant and

equipment in the Heidelberg factory and impairment costs of £21 million associated with the Dhaka factory closure in Bangladesh. The depreciation and

impairment charge has been partially offset by an adjusting credit of £16 million in relation to the reversal of a machinery impairment in Reynolds American

Companies as explained in note 4.

The restructuring costs reported in other operating expenses in 2025 include costs related to the Dhaka factory closure.

In 2023, following the completion of the Quantum programme, a credit of £26 million was recognised due to the reversal of restructuring provisions recognised

in respect of employee packages. In addition, a credit of £7 million was recognised in 2023 in relation to impairment reversals associated with the Quantum

programme. Included in this was an impairment reversal of £4 million in relation to machinery in South Africa as the asset can be used by another market in the

Group.

In addition, in 2023, an adjusting impairment charge of £46 million was recognised for machinery in Reynolds American Companies due to the adverse

impact from macro-economic headwinds and industry volume decline in the U.S. In 2025, £16 million of this charge was reversed as explained above.

The reversal recognised in other operating expenses in 2023 of£15 million included unutilised Quantum provisions along with £3 million relating to the release

of a provision originally raised in 2007 relating to site clean up costs in Canada. As no further work is required on the site the remaining provision was reversed.

British American Tobacco p.l.c. Form 20-F 2025<br>

**8 Net finance costs**

**(a) Net finance costs/(income)**

---

| | | | |
|:---|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>| 2023<br>£m<br>|
| Interest expense | **1658** | 1704 | 1786 |
| Interest expense on lease liabilities | **40** | 38 | 30 |
| Facility fees | **17** | 17 | 19 |
| Impact of the early repurchase of bonds (note 8(b)) | **—** | (590) | 29 |
| Interest related to adjusting tax payables (note 8(b)) | **117** | 80 | 71 |
| Fair value changes on derivative financial instruments, hedged items and investments | **521** | 90 | 599 |
| Fair value change on other financial items (note 8(b)) | **4** | 19 | (4) |
| The Approved Plans in Canada (note 8(b)) | **112** |  |  |
| Venezuela net gain on monetary items (note 8(b)) | **(63)** |  |  |
| Exchange differences | **(373)** | (9) | (449) |
| **Finance costs** | **2033** | 1349 | 2081 |
| Interest income under the effective interest method | **(214)** | (251) | (186) |
| **Finance income** | **(214)** | (251) | (186) |
| **Net finance costs** | **1819** | 1098 | 1895 |

---

The Group manages foreign exchange gains and losses and fair value changes on a net basis excluding adjusting items, which are explained in note 8(b). The

derivatives that generate the fair value changes are explained in note 19.

Facility fees principally relate to the Group's central banking facilities.

Finance income includes income on cash and cash equivalents of which £50 million (2024: £112 million; 2023: £97 million) relates to restricted cash

balances (see note 21).

**(b) Adjusting items included in net finance costs**

Adjusting items are significant items in net finance costs which individually or, if of a similar type, in aggregate, are relevant to an understanding of the

Group's underlying financial performance.

The Group recognised interest on adjusting tax payables of £117 million (2024: £80 million; 2023: £71 million), which included:

–interest of£30 million (2024: £61 million; 2023: £60 million) in relation to the Franked Investment Income Group Litigation Order (FII GLO)

(note10(b));

–interest of £66 million(2024: £8 million; 2023: £16 million) in relation to a tax provision in the Netherlands;

–a charge of £11 million (2024: £14 million; 2023: nil) in relation to a tax case in Brazil; and

–a further £10 million (2024: £11 million; 2023: nil) interest charge recorded on government liability balances accumulated during CCAA protection.

In prior periods, the interest on adjusting tax payables also included, in 2024, £11 million on a tax provision in Indonesia and a release of £25 million of

interest on a tax provision in Canada in relation to a settlement agreement with local authorities, and, in 2023, included a £3 millioncredit from the reversal

of interest on a tax provision in relation to the factory closure in Switzerland and a £2 million credit from the reversal of interest on tax provisions related

toRussia.

Adjusting items associated with the Approved Plans in Canada relate to the unwinding of discount on the associated provision of £112 million (refer to note 24).

The net gain on monetary items of £63 million in Venezuela results from the application of hyperinflation accounting under IAS29 *Financial Reporting in* 

*Hyperinflationary Economies.*

Included within fair value changes on other financial items is a fair value loss of £4 million (2024: £19 million; 2023: nil) on embedded derivatives related to

associates.

In 2024, in relation to the early repurchase of bonds, the Group incurred a fair value loss of £9 million (2023: £151 million) on debt-related derivatives,

realised a gain of £602 million (2023: £129 million) arising on the difference between the redemption value and the amortised cost of the bonds, and incurred

other transaction costs of £3 million (2023: £7 million).

British American Tobacco p.l.c. Form 20-F 2025<br>

**9 Associates and joint ventures**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | <br>**Total**<br>**£m**<br>| **2025**<br>**Group's**<br>**share**<br>**£m**<br>| <br>Total<br>£m<br>| 2024<br>Group's share<br>£m<br>| <br>Total<br>£m<br>| 2023<br>Group's share<br>£m<br>|
| Revenue | **9708** | **2416** | 9936 | 2635 | 9412 | 2630 |
| Profit from operations | **3752** | **952** | 2662 | 715 | 2596 | 783 |
| Net finance income | **(2)** | **—** | 5 | 2 | 15 | 4 |
| Profit on ordinary activities <br>before taxation<br>| **3750** | **952** | 2667 | 717 | 2611 | 787 |
| Taxation on ordinary activities | **(659)** | **(162)** | (639) | (172) | (664) | (194) |
| Profit on ordinary activities after taxation | **3091** | **790** | 2028 | 545 | 1947 | 593 |
| Non-controlling interests | **(27)** | **(7)** | (27) | (6) | (28) | (8) |
| Post-tax results of associates and joint ventures | **3064** | **783** | 2001 | 539 | 1919 | 585 |
| Gain from partial divestment of shares in ITC | **—** | **898** |  | 1361 |  |  |
| Total post-tax results of associates and joint <br>ventures<br>| **3064** | **1681** | 2001 | 1900 | 1919 | 585 |

---

Enumerated below are movements that have impacted the post-tax results of associates and joint ventures in 2025, 2024 and 2023. The amounts below were

reported as adjusting items under the share of profit from associates in the income statement.

**(a) Adjusting items**

In 2025, the Group's interest in ITC, an associate of the Group in India, decreased from 25.45% to 22.91% (2024: 29.02% to25.45%; 2023: 29.19% to

29.02%) as a result of ITC issuing ordinary shares under the ITC Employee Share Option Scheme and the Group's partial divestment of shares held in ITC.

The issue ofthese shares under the ITC Employee Option Scheme and related change in the Group's share of ITC resulted in a gainof £6 million (2024:

£18 million gain; 2023: £40 million gain), which is treated as a deemed partial disposal and included in the incomestatement.

On 28 May 2025, the Group announced the divestment of 313,000,000 ordinary shares held in ITC, representing 10%of the Group's equity stake (the

equivalent of 2.5% of ITC's ordinary shares). A gain of £898 million has been recognised in the Group's share of post-tax results of associates and joint

ventures and includes a foreign exchange loss of £47 million reclassified to the income statement and previously recognised in associates other

comprehensive income. Refer to note 27(b)(i) for further details.

In addition, in 2025, as part of the demerger accounting (refer to note 14), ITC recognised the excess of the fair value over the carrying value of the hotels

business as an adjusting item. The Group's share of this adjusted gain amounted to £333 million (net of tax).

During the year, VST Industries Limited recognised an adjusting gain in relation to a sale of land and buildings. The Group's share of this gain is £3 million.

Organigram Global Inc. (Organigram) acquired Motifs Lab Ltd on 6 December 2024 and the consideration included CAD$40 million of common shares in

Organigram which diluted BAT's ownership from 35.09% to 30.60% and resulted in a loss on dilution of £1 million.

On 13 March 2024, the Group announced the divestment of 436,851,457 ordinary shares held in ITC, representing12% of the Group's equity stake (the

equivalent of 3.5% of ITC's ordinary shares). A gain of £1,361 million has been recognised in the Group's share of post-tax results of associates and joint

ventures and includes a foreign exchange loss of £43 million reclassified to the income statement and previously recognised in associates other

comprehensive income. Refer to note 27(b)(i) for further details.

In 2023, ITC recognised a credit in respect of the proceeds received in partial settlement of the insurance claim towards the cost of leaf tobacco stocks

destroyed in a third-party warehouse fire, the Group's share of which was £2 million.

In 2023, the Group impaired the investment inOrganigram by £34 million (net of tax), driven by the decrease in Organigram's share price. In 2024 and 2025,

no further impairment was required.

**(b) Other financial information**

The Group's share of the results of associates and joint ventures (excluding the gain from partial divestment of shares in ITC) is shown in the table below.

---

| | | | |
|:---|:---|:---|:---|
| | **2025**<br>**Group's**<br>**share**<br>**£m**<br>| 2024<br>Group's<br>share<br>£m<br>| 2023<br>Group's<br>share<br>£m<br>|
| Profit on ordinary activities after taxation |  |  |  |
| – attributable to owners of the parent | **783** | 539 | 585 |
| Other comprehensive income/(expense): |  |  |  |
| Items that may be reclassified to profit and loss | **(133)** | (13) | (107) |
| Items that will not be reclassified to profit and loss | **(4)** | 33 | (5) |
| **Total comprehensive income** | **646** | 559 | 473 |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

Summarised financial information of the Group's associates and joint ventures is shown below.

---

| | | | |
|:---|:---|:---|:---|
| | <br>**ITC**<br>**£m**<br>| <br>**Others**<br>**£m**<br>| **2025**<br>**Total**<br>**£m**<br>|
| Revenue | **6921** | **2787** | **9708** |
| Profit/(loss) on ordinary activities before taxation | **3765** | **(15)** | **3750** |
| Post-tax results of associates and joint ventures | **3082** | **(18)** | **3064** |
| Other comprehensive expense | **(761)** | **(14)** | **(775)** |
| **Total comprehensive income/(expense)** | **2321** | **(32)** | **2289** |

---

---

| | | | |
|:---|:---|:---|:---|
| | <br>ITC<br>£m<br>| <br>Others<br>£m<br>| 2024<br>Total<br>£m<br>|
| Revenue | 7265 | 2671 | 9936 |
| Profit/(loss) on ordinary activities before taxation | 2680 | (13) | 2667 |
| Post-tax results of associates and joint ventures | 2025 | (24) | 2001 |
| Other comprehensive income/(expense) | 98 | (15) | 83 |
| **Total comprehensive income/(expense)** | 2123 | (39) | 2084 |

---

---

| | | | |
|:---|:---|:---|:---|
| | <br>ITC<br>£m<br>| <br>Others<br>£m<br>| 2023<br>Total<br>£m<br>|
| Revenue | 6805 | 2607 | 9412 |
| Profit/(loss) on ordinary activities before taxation | 2813 | (202) | 2611 |
| Post-tax results of associates and joint ventures | 2121 | (202) | 1919 |
| Other comprehensive expense | (368) | (20) | (388) |
| **Total comprehensive income/(expense)** | 1753 | (222) | 1531 |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

**10 Taxation on ordinary activities**

**(a) Summary of taxation on ordinary activities**

---

| | | | |
|:---|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>| 2023<br>£m<br>|
| UK corporation tax | **17** | 24 | 32 |
| Comprising: |  |  |  |
| – current year tax expense | **15** | 15 | 20 |
| – adjustments in respect of prior periods | **2** | 9 | 12 |
| Overseas tax | **2059** | 2679 | 2779 |
| Comprising: |  |  |  |
| – current year tax expense | **2355** | 2571 | 2804 |
| – adjustments in respect of prior periods | **(296)** | 108 | (25) |
| **Current tax** | **2076** | 2703 | 2811 |
| Pillar Two income tax (note 10(h)) | **82** | 79 |  |
| **Total current tax** | **2158** | 2782 | 2811 |
| Deferred tax | **(64)** | (2425) | (5683) |
| Comprising: |  |  |  |
| – deferred tax relating to origination and reversal of temporary differences | **138** | (2176) | (5577) |
| – deferred tax relating to changes in tax rates | **(202)** | (249) | (106) |
|  | **2094** | 357 | (2872) |

---

**(b) Franked Investment Income Group Litigation Order** 

The Group is the principal test claimant in an action in the United Kingdom against HM Revenue and Customs (HMRC) in the Franked Investment Income

Group Litigation Order (FII GLO). There were 14 corporate groups in the FII GLO as at 31 December 2025. The case concerns the treatment for UK

corporate tax purposes of profits earned overseas and distributed to the UK.

The original claim was filed in 2003. The trial of the claim was split broadly into issues of liability and quantification. The main liability issues were heard by

the High Court, Court of Appeal and Supreme Court in the UK and the European Court of Justice in the period to November 2012. The detailed technical

issues of the quantification mechanics of the claim were heard by the High Court during May and June 2014 and the judgment handed down on 18 December

2014. The High Court determined that in respect of issues concerning the calculation of unlawfully charged corporation tax and advance corporation tax, the

law of restitution including the defence on change of position and questions concerning the calculation of overpaid interest, the approach of the Group was

broadly preferred. The conclusion reached by the High Court would, if upheld, produce an estimated receivable of £1.2 billion for the Group. Appeals on a

majority of the issues were made to the Court of Appeal, which heard the arguments in June 2016. The Court of Appeal determined in November 2016 on

the majority of issues that the conclusion reached by the High Court should be upheld. The Supreme Court gave permission for a number of issues to be

appealed in two separate hearings. The first, in February 2020, concerned the time limit for bringing claims. In its application for permission HMRC sought

to reverse established House of Lords' authorities on which those earlier judgments were based. They were granted permission to do so by the Supreme

Court who divided the appeal into two hearings, the first on the issue of time limits and the second on the issue of interest and related topics. In November

2020, the Supreme Court handed down its judgment on the first stage of that appeal. The Supreme Court agreed to overturn its existing case law partially but

introduced a new test for determining whether claims of this type are in time. The case was then remitted to the High Court to apply that new test to the facts.

The judgment from the second hearing was handed down in July 2021. Applying that judgment reduces the value of BAT's FII claim to approximately

£0.3 billion, mainly as the result of the application of simple interest and the limitation to claims for advance corporation tax offset against lawful corporation

tax charges, which is subject to the determination of the remitted timing issue by the High Court and any subsequent appeal. BAT's claim currently

comprises interest of £0.2 billion and tax of £0.1 billion. The High Court hearing on time limits was heard in late November 2023 with judgment handed

down in February 2024. The High Court determined that claims should have been filed within 6 years of June 2000 meaning that BAT's claims are in time.

HMRC appealed the judgment, and the appeal was heard in the Court of Appeal in May 2025. The Court of Appeal handed down its judgment in October

2025 and dismissed HMRC's appeal against the High Court's judgment preserving the claims BAT made on a timely basis. HMRC sought permission from

the Court of Appeal to appeal the limitation and a computational issue to the Supreme Court. The Court of Appeal refused permission to appeal on both

issues after which HMRC sought permission to appeal directly from the Supreme Court. Whilst in January 2026 the Supreme Court refused permission to

hear HMRC's appeal on limitation, they are still considering HMRC's further application on the computational issue which could impact BAT's claim.

During 2015, HMRC paid to the Group a gross amount of £1,224 million in two separate payments. The payments made by HMRC havebeen made without

any admission of liability and are subject to refund were HMRC to succeed on appeal. The second payment inNovember 2015 followed the introduction of a

new 45% tax on the interest component of restitution claims against HMRC. HMRC held back £261 million from the second payment contending that it

represents the new 45% tax on that payment, leading to total cash received by the Group of £963 million. Actions challenging the legality of the withholding

of the 45% tax have been lodged by the Group. The First Tier Tribunal found in favour of HMRC in July 2017 and the Group's appeal to the Upper Tribunal

was heard in July 2018. In February 2025, the Group reached agreement with HMRC that the 45% tax should not apply to the reduced value of Group's

claim (£0.3 billion as mentioned above). This does not impact the repayment agreement referred to below, with the legal challenge on this issue now

concluded.

Due to the uncertainty of the amounts and eventual outcome, the Group has not recognised any impact in the Income Statement in the current or prior period. The

receipt, net of the deduction by HMRC, is held within trade and other payables as disclosed in note 25. Any future recognition as income will be treated as an

adjusting item, due to the size of the amount, with interest of £30 million for the 12 months to 31 December 2025 (2024: £61 million; 2023: £60 million) accruing

on the balance, which was also treated as an adjusting item.

The Group made interim repayments to HMRC of £479 million in 2025, following the agreement with HMRC to repay£0.8 billion (being the difference

between the amounts received plus accrued interest and the amount determined in the July 2021 judgment (£0.3 billion)). The Group had previously made

annual payments of £50 million in 2024, 2023 and 2022.

The schedule for the remaining repayments is:

–£222 million in 2026; and

–£41 million in 2027.

British American Tobacco p.l.c. Form 20-F 2025<br>

**(c) Factors affecting the taxation charge**

The taxation charge differs from the standard rate of corporation tax in the UK of 25.0% for 2025, 25.0% for 2024 and 23.5% for 2023. Themajor causes of

this difference are listed below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | 2024 | 2024 | 2023 | 2023 |
| | **£m** | **%** | £m | % | £m | % |
| Profit/(loss) before tax | **9859** |  | 3538 |  | (17061) |  |
| Less: share of post-tax results of associates and joint ventures (see <br>note 9)<br>| **(1681)** |  | (1900) |  | (585) |  |
|  | **8178** |  | 1638 |  | (17646) |  |
| Tax at 25% (2024: 25.0%; 2023: 23.5%) on the above | **2044** | **25.0** | 410 | 25.0 | (4147) | 23.5 |
| Factors affecting the tax rate: |  |  |  |  |  |  |
| Tax at standard rates other than UK corporation tax rate | **(109)** | **(1.3)** | 395 | 24.1 | 619 | (3.5) |
| Other national tax charges | **248** | **3.0** | 277 | 16.9 | 310 | (1.8) |
| Pillar Two income taxes | **82** | **1.0** | 79 | 4.8 |  |  |
| Permanent differences | **(127)** | **(1.6)** | (71) | (4.3) | 845 | (4.8) |
| Overseas withholding taxes | **182** | **2.2** | 168 | 10.3 | 179 | (1.0) |
| Double taxation relief on UK profits | **(38)** | **(0.5)** | (30) | (1.8) | (46) | 0.3 |
| Unutilised/(utilised) tax losses | **(29)** | **(0.4)** | 33 | 2.0 | (15) | 0.1 |
| Adjustments in respect of prior periods | **(294)** | **(3.5)** | 117 | 7.1 | (13) | 0.1 |
| Deferred tax relating to changes in tax rates | **(202)** | **(2.5)** | (249) | (15.2) | (106) | 0.6 |
| Additional net deferred tax charges/(credits) | **337** | **4.2** | (772) | (47.1) | (498) | 2.8 |
|  | **2094** | **25.6** | 357 | 21.8 | (2872) | 16.3 |

---

Additional net deferred tax charges and adjustment in respect of prior periods reflect the adjustments arising from the upfront cash payment in relation to the

Approved Plans in Canada described further in notes 24 and 31.

Additional net deferred tax credits in 2024 mainly reflect the Canadian provincial tax consequences of the Proposed Plans in Canada, described further in

notes 24 and 31.

The Group's reported 2023 tax rate is significantly impacted by the impairment of intangible assets as described in note 12.

–Permanent differences in 2023 consist mainly of the tax impact of the goodwill impairment (for which no tax relief is available).

–Additional net deferred tax (credits)/charges in 2023 consist mainly of the U.S. state deferred tax impact of the trademark impairment (please see further in

note 16).

**(d) Adjusting items included in taxation**

In 2025, adjusting items in taxation included a net credit of £104 million mainly relating to an additional tax charge pertaining to the Dutch litigation

following the Court of Appeal judgment received in September 2025 (described further in note 31) offset by the revaluation of deferred tax liabilities arising

on trademarks recognised in the Reynolds American acquisition due to changes in U.S. state effective tax rates and the partial release of a provision for tax

exposure in Indonesia.

In 2024, adjusting items in taxation included a net credit of £157 million mainly relating to Brazilian Federal Tax Authority challenges regarding the

treatment of Rio de Janeiro VAT incentives (described further in note 31) and a provision for potential tax exposures in Indonesia, offset by the revaluation of

deferred tax liabilities arising on trademarks recognised in the Reynolds American acquisition in 2017 due to changes in U.S. state tax rates and the reversal

of a tax provision in Canada following a settlement agreement with local authorities.

In 2023, adjusting items in taxation included a net credit of £73 million relating to the revaluation of deferred tax liabilities arising on trademarks recognised

in the Reynolds American acquisition in 2017 due to changes in U.S. state tax rates, the reversal of provisions for Russia tax risks and a potential clawback

oftax reliefs arising on the closure of the Group's factory in Switzerland offset by a provision for potential tax exposures in the Netherlands and the tax

impact in Brazil of the legal case regarding Rio de Janeiro VAT incentives (described further in note 6(k)).

British American Tobacco p.l.c. Form 20-F 2025<br>

**(e) Tax on adjusting items**

In addition, the tax on adjusting items, separated between the different categories, as per note 11, amounted to £240 million (2024: £2,049 million; 2023:

£5,415 million). The adjustment to the adjusted earnings per share (note 11) also includes £125 million (2024: £38 million; 2023: £1 million) in respect of the

non-controlling interests' share of the adjusting items net of tax.

**(f) Tax on items recognised directly in other comprehensive income**

---

| | | | |
|:---|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>| 2023<br>£m<br>|
| Current tax | **(5)** | (6) | (5) |
| Deferred tax | **(8)** | (18) | 12 |
| (Charged)/credited to other comprehensive income | **(13)** | (24) | 7 |

---

**(g) Tax on items recognised directly in equity**

In relation to the perpetual hybrid bonds issued on 27 September 2021 (note 22(d)), tax relief of £14 million (2024: £14 million; 2023: £14 million) has been

recognised, principally in relation to the coupon incurred.

**(h) Global minimum tax**

In December 2021, the OECD released model rules for a new global minimum corporate tax framework applicable to multinational enterprise groups with

global revenues of over €750 million (Pillar Two rules). The UK substantively enacted legislation implementing these rules on 20 June 2023 and the rules

apply to the Group as of 1 January 2024. The impact is shown in notes 10(a) and 10(c) above. The Group continues to review this legislation together with

developing guidance. The Group is also monitoring the status of implementation of the Pillar Two rules outside ofthe UK to assess the potential impact.

**11 Earnings per share**

Earnings used in the basic, diluted and headline earnings per share calculation represent the profit attributable to the ordinary equity shareholders after

deducting amounts representing the coupon on perpetual hybrid bonds on a pro-rata basis regardless of whether or not coupons have been declared and paid

in the period, as required by IAS 33 *Earnings per Share*. In addition, as explained in note 22(d), during 2025, the Group redeemed its €1 billion3% perpetual

hybrid bonds from the holders of the securities. As required by IAS 33, the loss on redemption is required to be deducted from Group earnings in the earnings

per share calculation. The loss on redemption of these bonds includes a redemption premium net of tax of £2 million, issuance and discount costs capitalised

in 2021 net of tax of £8 million, as well as £29 million in relation to the difference in spot rates between issuance and redemption. The latter component has

been treated as an adjusting item for the purpose of calculating the Group's adjusted earnings per share below. Below is a reconciliation of the earnings used

to calculate earnings per share:

---

| | | | |
|:---|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>| 2023<br>£m<br>|
| Earnings/(loss) attributable to owners of the parent | **7764** | 3068 | (14367) |
| Coupon on perpetual hybrid bonds | **(64)** | (56) | (59) |
| Tax on coupon on perpetual hybrid bonds | **16** | 14 | 14 |
| Loss on redemption of perpetual hybrid bonds | **(39)** |  |  |
| **Earnings/(loss)** | **7677** | 3026 | (14412) |

---

In 2023, the Group reported a loss for the year. Following the requirements of IAS 33 *Earnings per Share*, the impact of share options would be antidilutive

and are excluded from the calculation of diluted earnings per share. Below is a reconciliation from basic to diluted earnings per share for 2025 and 2024:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | <br>**Earnings**<br>**£m**<br>| <br>**Weighted**<br>**average**<br>**number of**<br>**shares**<br>**m**<br>| **2025**<br>**Earnings**<br>**per share**<br>**pence**<br>| <br>Earnings<br>£m<br>| <br>Weighted<br>average<br>number of<br>shares<br>m<br>| 2024<br>Earnings<br>per share<br>pence<br>| <br>Loss<br>£m<br>| <br>Weighted<br>average<br>number of<br>shares<br>m<br>| 2023<br>Loss<br>per share<br>pence<br>|
| Basic earnings/(loss) per share <br>(ordinary shares of 25p each)<br>| **7677** | **2187** | **351.0** | 3026 | 2214 | 136.7 | (14412) | 2229 | (646.6) |
| Share options | **—** | **12** | **(1.9)** |  | 11 | (0.7) |  |  |  |
| **Diluted earnings/(loss) per share\*** | **7677** | **2199** | **349.1** | 3026 | 2225 | 136.0 | (14412) | 2229 | (646.6) |

---

**Note:**

\*In 2023, the Group reported a loss for the year. Following the requirements of IAS 33, the impact of share options would be antidilutive and is therefore excluded, for 2023, from the calculation of diluted

earnings per share, calculated in accordance with IFRS. For remuneration purposes, and reflective of the Group's positive earnings on an adjusted basis, management included the dilutive effect of share options in

calculating adjusted diluted earnings per share. There were 8 million share options on a weighted average basis in 2023.

**Adjusted earnings per share calculation** 

Earnings have been affected by a number of adjusting items, which are described in notes 3 to 10. Adjusting items are significant items in the profit from

operations, net finance costs, taxation and the Group's share of the post-tax results of associates and joint ventures which individually or, if of a similar type,

in aggregate, are relevant to an understanding of the Group's underlying financial performance. In addition, in relation to the redemption of the Euro

perpetual hybrid bonds, the impact of the difference in spot rates between issuance and redemption has been treated as an adjusting item. The Group believes

that these items are useful to users of the Group financial statements in helping them to understand the underlying business performance. To illustrate the

impact of these items, an adjusted earnings per share calculation is shown below.

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | |  |  |  |  |  | Basic |
|  | | **2025** | **2025** | 2024 | 2024 | 2023 | 2023 |
| | <br>Notes | **Earnings**<br>**£m**<br>| **Earnings**<br>**per share**<br>**pence**<br>| Earnings<br>£m<br>| Earnings<br>per share<br>pence<br>| (Loss)/<br>earnings<br>£m<br>| (Loss)/<br>Earnings<br>per share<br>pence<br>|
| Basic earnings/(loss) per share |  | **7677** | **351.0** | 3026 | 136.7 | (14412) | (646.6) |
| Effect of amortisation and impairment of goodwill, <br>trademarks and similar intangibles<br>| 4 | **1861** | **85.2** | 2318 | 104.7 | 27816 | 1247.9 |
| Tax and non-controlling interests on amortisation and <br>impairment of goodwill, trademarks and similar <br>intangibles<br>| 10(e) | **(362)** | **(16.6)** | (522) | (23.6) | (5390) | (241.8) |
| Effect of impairment charges in respect of the <br>Group's head office<br>| 4 | **—** | **—** | 75 | 3.4 |  |  |
| Tax on impairment charges in respect of the <br>Group's head office<br>| 10(e) | **—** | **—** | (10) | (0.5) |  |  |
| Effect of impairment charges in respect of the <br>Group's operations in Cuba<br>| 4 | **—** | **—** | 74 | 3.3 |  |  |
| Non-controlling interests on impairment charges in <br>respect of the Group's operations in Cuba<br>| 10(e) | **—** | **—** | (38) | (1.7) |  |  |
| Effect of settlement of historical litigation in relation <br>to the Fox River<br>| 5(d) | **—** | **—** | (132) | (6.0) |  |  |
| Tax on settlement of historical litigation in relation to <br>the Fox River<br>| 10(e) | **—** | **—** | 22 | 1.0 |  |  |
| Net effect of excise and VAT cases | 5(c), 6(k) | **—** | **—** |  |  | (167) | (7.5) |
| Tax on excise and VAT cases | 10(e) | **—** | **—** |  |  | 41 | 1.8 |
| Effect of the changes in provision in relation to the <br>Approved Plans in Canada and associated costs<br>| 6(c) | **(705)** | **(32.1)** | 6203 | 280.2 |  |  |
| Tax on the changes in provision in relation to the <br>Approved Plans in Canada and associated costs<br>| 10(e) | **182** | **8.3** | (1644) | (74.3) |  |  |
| Effect of disposal of subsidiaries | 6(f) | **—** | **—** |  |  | 546 | 24.5 |
| Effect of charges in respect of DOJ and OFAC <br>investigations<br>| 6(h) | **—** | **—** | 4 | 0.2 | 75 | 3.4 |
| Effect of impairment of held-for-sale assets and <br>associated costs<br>| 6(j) | **235** | **10.7** |  |  |  |  |
| Non-controlling interests on impairment of held-for-<br>sale assets<br>| 10(e) | **(115)** | **(5.3)** |  |  |  |  |
| Effect of planned disposal of subsidiaries | 6(j) | **—** | **—** |  |  | (195) | (8.7) |
| Effect of Romania and Brazil other taxes | 6(k) | **(15)** | **(0.7)** | 449 | 20.3 | 47 | 2.1 |
| Tax on Romania and Brazil other taxes | 10(e) | **1** | **—** | (2) | (0.1) | (16) | (0.7) |
| Effect of restructuring costs | 7 | **66** | **3.0** |  |  | (2) | (0.1) |
| Tax and non-controlling interests on restructuring costs | 10(e) | **(26)** | **(1.2)** |  |  | (3) | (0.1) |
| Other adjusting items | 3, 6(d),6(g),6(i) | **133** | **6.1** | 163 | 7.4 | 96 | 4.3 |
| Tax effect on other adjusting items | 10(e) | **(19)** | **(0.9)** | (44) | (2.0) | (22) | (1.0) |
| Effect of early repurchase of bonds  | 8(b) | **—** | **—** | (590) | (26.6) | 29 | 1.3 |
| Tax effect of early repurchase of bonds | 10(e) | **—** | **—** | 141 | 6.4 | (8) | (0.4) |
| Effect of adjusting net finance costs | 8(b) | **170** | **7.8** | 99 | 4.5 | 67 | 3.0 |
| Tax effect of adjusting net finance costs | 10(e) | **(61)** | **(2.8)** | (26) | (1.2) | (18) | (0.8) |
| Effect of gains related to the partial divestment of <br>shares held in ITC<br>| 9(a) | **(898)** | **(41.0)** | (1361) | (61.5) |  |  |
| Capital gains tax and deferred tax associated with the <br>partial divestment of shares held in ITC and hotels <br>business demerger<br>| 10(e) | **35** | **1.6** | 36 | 1.6 |  |  |
| Effect of associates' adjusting items net of tax | 9(a) | **(341)** | **(15.6)** | (18) | (0.8) | (8) | (0.4) |
| Deferred tax relating to changes in tax rates | 10(d) | **(203)** | **(9.3)** | (267) | (12.1) | (97) | (4.4) |
| Adjusting items in tax | 10(d) | **99** | **4.5** | 110 | 5.0 | 24 | 1.2 |
| Redemption of perpetual hybrid bond - difference in <br>spot rates<br>| 22(d) | **29** | **1.3** |  |  |  |  |
| **Adjusted earnings per share (basic)** |  | **7743** | **354.0** | 8066 | 364.3 | 8403 | 377.0 |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | |  |  |  |  |  | Diluted |
|  | | **2025** | **2025** | 2024 | 2024 | 2023 | 2023 |
| | <br>Notes | **Earnings**<br>**£m**<br>| **Earnings**<br>**per share**<br>**pence**<br>| Earnings<br>£m<br>| Earnings<br>per share<br>pence<br>| (Loss)/<br>earnings<br>£m<br>| (Loss)/<br>Earnings<br>per share<br>pence<br>|
| Diluted earnings/(loss) per share |  | **7677** | **349.1** | 3026 | 136.0 | (14412) | (646.6) |
| Effect of amortisation and impairment of goodwill, <br>trademarks and similar intangibles<br>| 4 | **1861** | **84.7** | 2318 | 104.2 | 27816 | 1247.9 |
| Tax and non-controlling interests on amortisation and <br>impairment of goodwill, trademarks and similar <br>intangibles<br>| 10(e) | **(362)** | **(16.5)** | (522) | (23.5) | (5390) | (241.8) |
| Effect of impairment charges in respect of the <br>Group's head office<br>| 4 | **—** | **—** | 75 | 3.4 |  |  |
| Tax on impairment charges in respect of the Group's <br>head office<br>| 10(e) | **—** | **—** | (10) | (0.5) |  |  |
| Effect of impairment charges in respect of the <br>Group's operations in Cuba<br>| 4 | **—** | **—** | 74 | 3.3 |  |  |
| Non-controlling interests on impairment charges in <br>respect of the Group's operations in Cuba<br>| 10(e) | **—** | **—** | (38) | (1.7) |  |  |
| Effect of settlement of historical litigation in relation <br>to the Fox River<br>| 5(d) | **—** | **—** | (132) | (5.9) |  |  |
| Tax on settlement of historical litigation in relation to <br>the Fox River<br>| 10(e) | **—** | **—** | 22 | 1.0 |  |  |
| Net effect of excise and VAT cases | 5(c), 6(k) | **—** | **—** |  |  | (167) | (7.5) |
| Tax on excise and VAT cases | 10(e) | **—** | **—** |  |  | 41 | 1.8 |
| Effect of the changes in provision in relation to the <br>Approved Plans in Canada and associated costs<br>| 6(c) | **(705)** | **(32.0)** | 6203 | 278.9 |  |  |
| Tax on the changes in provision in relation to the <br>Approved Plans in Canada and associated costs<br>| 10(e) | **182** | **8.3** | (1644) | (73.9) |  |  |
| Effect of disposal of subsidiaries | 6(f) | **—** | **—** |  |  | 546 | 24.5 |
| Effect of charges in respect of DOJ and OFAC <br>investigations<br>| 6(h) | **—** | **—** | 4 | 0.2 | 75 | 3.4 |
| Effect of impairment of held-for-sale assets and <br>associated costs<br>| 6(j) | **235** | **10.7** |  |  |  |  |
| Non-controlling interests on impairment of held-for-<br>sale assets<br>| 10(e) | **(115)** | **(5.2)** |  |  |  |  |
| Effect of planned disposal of subsidiaries | 6(j) | **—** | **—** |  |  | (195) | (8.7) |
| Effect of Romania and Brazil other taxes | 6(k) | **(15)** | **(0.7)** | 449 | 20.2 | 47 | 2.1 |
| Tax on Romania and Brazil other taxes | 10(e) | **1** | **—** | (2) | (0.1) | (16) | (0.7) |
| Effect of restructuring costs | 7 | **66** | **3.0** |  |  | (2) | (0.1) |
| Tax and non-controlling interests on restructuring costs | 10(e) | **(26)** | **(1.2)** |  |  | (3) | (0.1) |
| Other adjusting items | 3, 6(d)6(g),6(i) | **133** | **6.0** | 163 | 7.3 | 96 | 4.3 |
| Tax effect on other adjusting items | 10(e) | **(19)** | **(0.9)** | (44) | (2.0) | (22) | (1.0) |
| Effect of early repurchase of bonds  | 8(b) | **—** | **—** | (590) | (26.5) | 29 | 1.3 |
| Tax effect of early repurchase of bonds | 10(e) | **—** | **—** | 141 | 6.3 | (8) | (0.4) |
| Effect of adjusting net finance costs | 8(b) | **170** | **7.7** | 99 | 4.4 | 67 | 3.0 |
| Tax effect of adjusting net finance costs | 10(e) | **(61)** | **(2.8)** | (26) | (1.2) | (18) | (0.8) |
| Effect of gains related to the partial divestment of <br>shares held in ITC<br>| 9(a) | **(898)** | **(40.8)** | (1361) | (61.1) |  |  |
| Capital gains tax and deferred tax associated with the <br>partial divestment of shares held in ITC and hotels <br>business demerger<br>| 10(e) | **35** | **1.6** | 36 | 1.6 |  |  |
| Effect of associates' adjusting items net of tax | 9(a) | **(341)** | **(15.5)** | (18) | (0.8) | (8) | (0.4) |
| Deferred tax relating to changes in tax rates | 10(d) | **(203)** | **(9.2)** | (267) | (12.0) | (97) | (4.4) |
| Adjusting items in tax | 10(d) | **99** | **4.5** | 110 | 4.9 | 24 | 1.2 |
| Redemption of perpetual hybrid bond - difference in <br>spot rates<br>| 22(d) | **29** | **1.3** |  |  |  |  |
| Impact of dilution\* |  |  |  |  |  |  | (1.4) |
| **Adjusted diluted earnings per share**  |  | **7743** | **352.1** | 8066 | 362.5 | 8403 | 375.6 |

---

**Note:\*** In 2023, the Group reported a loss for the year. Following the requirements of IAS 33, the impact of share options would be antidilutive and is therefore excluded, for 2023, from the calculation of diluted

earnings per share, calculated in accordance with IFRS. For remuneration purposes, and reflective of the Group's positive earnings on an adjusted basis, management included the dilutive effect of share options in

calculating adjusted diluted earnings per share.

British American Tobacco p.l.c. Form 20-F 2025<br>

**12 Intangible assets**

**(a) Overview of intangible assets**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | <br>**Trademarks**<br>**and similar** <br>**intangibles**<br>**£m**<br>| <br>**Goodwill**<br>**£m**<br>| <br>**Computer**<br>**software**<br>**£m**<br>| <br>**Assets in** <br>**the course of** <br>**development**<br>**£m**<br>| **2025**<br>**Total**<br>**£m**<br>|
| **1 January** |  |  |  |  |  |
| Cost | **80277** | **46169** | **1299** | **165** | **127910** |
| Accumulated amortisation and impairment | **(27564)** | **(5040)** | **(1029)** | **(1)** | **(33634)** |
| **Net book value at 1 January** | **52713** | **41129** | **270** | **164** | **94276** |
| Differences on exchange | **(3592)** | **(1935)** | **(2)** | **—** | **(5529)** |
| Additions |  |  |  |  |  |
| – internal development | **—** | **—** | **—** | **92** | **92** |
| – acquisitions (note 27) | **8** | **—** | **—** | **—** | **8** |
| – separately acquired | **35** | **—** | **—** | **55** | **90** |
| Reallocations | **61** | **—** | **127** | **(188)** | **—** |
| Amortisation charge | **(1605)** | **—** | **(119)** | **—** | **(1724)** |
| Impairment | **(5)** | **(277)** | **3** | **—** | **(279)** |
| **31 December** |  |  |  |  |  |
| Cost | **74813** | **43936** | **1417** | **124** | **120290** |
| Accumulated amortisation and impairment | **(27198)** | **(5019)** | **(1138)** | **(1)** | **(33356)** |
| **Net book value at 31 December** | **47615** | **38917** | **279** | **123** | **86934** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | <br>Trademarks<br>and similar <br>intangibles<br>£m<br>| <br>Goodwill<br>£m<br>| <br>Computer<br>software<br>£m<br>| <br>Assets in <br>the course of <br>development<br>£m<br>| 2024<br>Total<br>£m<br>|
| **1 January** |  |  |  |  |  |
| Cost | 78848 | 46021 | 1408 | 110 | 126387 |
| Accumulated amortisation and impairment | (24847) | (4930) | (1048) |  | (30825) |
| **Net book value at 1 January** | 54001 | 41091 | 360 | 110 | 95562 |
| Differences on exchange | 915 | 77 | (1) | (1) | 990 |
| Additions |  |  |  |  |  |
| – internal development |  |  |  | 80 | 80 |
| – separately acquired | 95 |  |  | 15 | 110 |
| Reallocations |  |  | 40 | (40) |  |
| Amortisation charge | (1652) |  | (120) |  | (1772) |
| Impairment | (646) | (39) | (9) |  | (694) |
| **31 December** |  |  |  |  |  |
| Cost | 80277 | 46169 | 1299 | 165 | 127910 |
| Accumulated amortisation and impairment | (27564) | (5040) | (1029) | (1) | (33634) |
| **Net book value at 31 December** | 52713 | 41129 | 270 | 164 | 94276 |

---

**(b) Goodwill**

Goodwill of £38,917 million (2024: £41,129 million) is included in intangible assets in the balance sheet, of which the following are the significant

acquisitions: Reynolds American £29,322 million (2024: £31,491 million); Rothmans Group £4,208 million (2024: £4,091 million); Imperial Tobacco

Canada £1,994 million (2024: £2,229 million); ETI (Italy) £1,438 million (2024: £1,363 million) and ST (principally Scandinavia) £1,080 million (2024:

£1,024 million). The principal allocations of goodwill in the Rothmans acquisition are to the cash-generating units of Europe and South Africa, with the

remainder relating to operations in APMEA.

During 2025, there was £277 million goodwill impairment (2024: £39 million) as explained in note 12(e)(v) and 12(e)(vii) below.

British American Tobacco p.l.c. Form 20-F 2025<br>

**(c) Trademarks and similar intangibles**

**Trademarks and similar intangibles with indefinite lives**

The net book value of trademarks and similar intangibles with indefinite lives is £8,728 million (2024: £9,832 million) and relates to the acquisition of

Reynolds American. Following the redesignation of Newport, Camel, Natural American Spirit and Pall Mall as definite-lived from 1 January 2024, and Camel

Snus from 1 January 2025, the remaining indefinite-lived brand is Grizzly. The Grizzly trademark is a key focus brand within the U.S. oral business, with

products in both the Traditional and Modern Oral categories, and receives significant support in the form of dedicated internal resources, forecasting and, where

appropriate, marketing investment. The Grizzly trademark has significant market share and positive cash flow expectations. There are no regulatory or

contractual restrictions on the use of the trademark, and there are no plans by management to significantly redirect resources elsewhere.

**Trademarks and similar intangibles with definite lives**

The majority of trademarks and similar intangibles with definite lives relate to trademarks acquired in previous years. These trademarks are amortised on a

straight-line basis over their expected useful lives, which do not exceed 30 years. Included in the net book value of trademarks and similar intangibles with

definite lives are trademarks relating to the acquisition of Reynolds American totalling £38,590 million (2024: £42,605 million) including Camel Snus which

was redesignated as definite-lived from 1 January 2025 (2024: indefinite-lived) with an estimated life of 20 years. These trademarks are part of the Group's

Strategic Portfolio of key brands and form the core focus of the U.S. combustibles business. These trademarks receive significant support in the form of

dedicated internal resources, forecasting and, where appropriate, marketing investment and have significant market share and positive cash flow expectations.

There are no regulatory or contractual restrictions on the use of the trademarks, and there are no plans by management to significantly redirect resources

elsewhere.

The below table shows the change in carrying value for the key definite-lived brands relating to the acquisition of Reynolds American.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Carrying amount**<br>**1 January**<br>**£m**<br>| **Differences on** <br>**exchange**<br>**£m**<br>| **Amortisation Charge**<br>**£m**<br>| **Carrying amount** <br>**31 December**<br>**£m**<br>|
| **Definite-lived intangibles** |  |  |  |  |
| Newport | 20421 | (1393) | (669) | 18359 |
| Camel | 7696 | (525) | (252) | 6919 |
| Pall Mall | 2522 | (171) | (126) | 2225 |
| Natural American Spirit | 10272 | (702) | (336) | 9234 |
| Other | 2153 | (145) | (155) | 1853 |
| **Total** | **43064** | **(2936)** | **(1538)** | **38590** |

---

**(d) Computer software and assets in the course of development**

Included in computer software and assets in the course of development are internally developed assets with a carrying value of £374 million (2024:

£398 million). The costs of internally developed assets include capitalised expenses of employees working full time onsoftware development projects, third-

party consultants and software licence fees from third-party suppliers.

The Group has £6 million of future contractual commitments (2024: £5 million) related to intangible assets.

**(e) Impairment testing**

**(i) Overview**

a. Estimation uncertainty

As described in note 1, the critical accounting estimates used in the preparation of the consolidated financial statements include the review of asset values,

especially indefinite-lived assets such as goodwill and certain definite-lived and indefinite-lived trademarks and similar intangibles.

There is significant judgement with regard to assumptions and estimates involved in the forecasting of future cash flows, which form the basis of the

assessment of the recoverability of these assets, with the effect that the value-in-use and fair value calculations incorporate estimation uncertainty, particularly

for certain assets held in relation to the U.S. market.

b. Impact of climate change

The impact of climate change has been considered in preparation of the financial statements. For impairment testing and valuation purposes, the Group have

included certain climate-related costs within the discounted cash flow forecast for impairment assessment. The Group also completed scenario analyses of the

potential impact of climate change-related risks. This sensitised discounted cash flow included chronic risks within the future cash flows and resulted in no

material adverse impact to the impairment assessment.

**(ii) Impairment testing - Trademarks and similar intangibles with indefinite lives (brands)**

The trademarks and similar intangibles with indefinite lives (brands) have been tested for impairment with recoverable amounts estimated on the basis of fair

value less cost of disposal and classified as level 3 within the fair value hierarchy. The fair value calculation uses cash flows based on detailed brand budgets

prepared by management using projected sales volumes and pricing (net revenue) and projected brand profitability covering a five-year horizon and,

thereafter, grown into perpetuity. A tax amortisation benefit factor is then applied to incorporate the additional value a market participant would derive in an

asset acquisition scenario. Corporate costs are allocated to the brand budgets based on either specific allocation, where appropriate, or based on revenue. The

discount rate and terminal value growth rate applied to the brand fair value calculation have been determined by local management based on experience,

specific market and brand trends and pricing and cost expectations. As the trademarks and similar intangibles with indefinite lives relate to the acquisition of

Reynolds American, the brand budgets used in the fair value calculations have also been incorporated into the budget information used in the impairment

testing of Reynolds American goodwill.

British American Tobacco p.l.c. Form 20-F 2025<br>

The below table indicates the key assumptions used in assessing the indefinite-lived brands for impairment.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | <br>**Carrying**<br>**amount**<br>**£m**<br>| <br>**Volume 5 Year** <br>**CAGR\***<br>| **2025**<br>**Pre-tax**<br>**discount rate%**<br>| <br>Carrying<br>amount<br>£m<br>| <br>Volume 5 Year <br>CAGR<br>| 2024<br>Pre-tax<br>discount rate%<br>|
| **Indefinite-lived intangibles** |  |  |  |  |  |  |
| Grizzly | **8728** | **5.0%** | **7.3** | 9373 | 7.6% | 7.6 |
| **Total** | **8728** |  |  | 9832 |  |  |

---

**Note:**

\*Volume five-year CAGR is calculated by reference to the first five years annual volumes in the fair value less cost of disposal model against the 2025 baseline.

Refer to note 12(e)(vi) for more details on impairment testing.

**(iii) Impairment testing - Trademarks and similar intangibles with definite lives (brands)**

Whilst no impairment triggers were identified, as noted in note 12(e)(vi), the cash flow forecasts for the definite-lived brands have been incorporated in the

impairment test for the goodwill associated with the Reynolds cash-generating unit (CGU). These brands have therefore been tested for impairment with

recoverable amounts estimated on the basis of fair value less cost of disposal and classified as level 3 within the fair value hierarchy. The fair value

calculations use cash flows based on detailed brand budgets prepared by management using projected sales volumes and pricing (net revenue) and projected

brand profitability covering a five-year horizon. Thereafter volume decline, pricing and margin assumptions are extrapolated over the remaining useful life. A

tax amortisation benefit factor is then applied to incorporate the additional value a market participant would derive in an asset acquisition scenario. Corporate

costs are allocated to the brand budgets based on either specific allocations, where appropriate, or based on revenue. The discount rates applied to the

definite-lived brand fair value calculations have been determined by local management based on experience, specific market and brand trends and pricing

and cost expectations.

The below table indicates the key assumptions used in assessing the key definite-lived brands for impairment.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | <br>**Carrying**<br>**amount**<br>**£m**<br>| <br>**Volume 5 Year** <br>**CAGR\***<br>| **2025**<br>**Pre-tax**<br>**discount rate%**<br>| <br>Carrying<br>amount<br>£m<br>| <br>Volume 5 Year <br>CAGR<br>| 2024<br>Pre-tax<br>discount rate%<br>|
| **Definite-lived intangibles** |  |  |  |  |  |  |
| Newport | **18359** | **(11.3)%** | **8.6** | 20421 | (12.5)% | 8.6 |
| Camel | **6919** | **(11.9)%** | **8.3** | 7696 | (12.6)% | 8.6 |
| Pall Mall | **2225** | **4.7%** | **8.4** | 2522 | (3.0)% | 8.8 |
| Natural American Spirit | **9234** | **(7.8)%** | **7.8** | 10272 | (8.1)% | 7.9 |
| **Total** | **36737** |  |  | 40911 |  |  |

---

**Note:**

\*Volume five-year CAGR is calculated by reference to the first five years' annual volumes used in the discounted cash flow model against the 2025 baseline.

The above table indicates a marginal increase in volume five-year CAGR compared to the 2024 assessment, except for Pall Mall which sees a greater

improvement due to increased promotional support and growth within the branded value segment.

Refer to note 12(e)(vi) for more details on impairment testing in respect of these brands.

British American Tobacco p.l.c. Form 20-F 2025<br>

**(iv) Cash generating units and information on goodwill impairment testing**

In 2025, goodwill was allocated for impairment testing purposes to 17 (2024: 17) individual CGUs – one in the U.S. (2024: one), nine in AME (2024: nine)

and seven in APMEA (2024: seven).

For the purpose of impairment testing, goodwill has been attributed to the following CGUs:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**Carrying**<br>**amount**<br>**£m**<br>| **2025**<br>**Pre-tax**<br>**discount rate%**<br>| <br>Carrying<br>amount<br>£m<br>| 2024<br>Pre-tax<br>discount rate%<br>|
| **Cash-generating unit** |  |  |  |  |
| Reynolds American | **29322** | **8.5** | 31491 | 9.0 |
| Europe | **5632** | **6.6** | 5358 | 6.7 |
| Canada | **1994** | **11.4** | 2229 | 9.8 |
| Australia | **664** | **11.8** | 662 | 7.9 |
| South Africa | **197** | **8.7** | 186 | 10.7 |
| Singapore | **371** | **6.7** | 376 | 8.4 |
| GTR | **246** | **9.2** | 249 | 7.1 |
| Malaysia | **170** | **10.1** | 187 | 10.6 |
| Peru | **—** | **N/A** | 74 | 8.7 |
| Other | **321** | **8.1** | 317 | 8.4 |
| **Total** | **38917** |  | 41129 |  |

---

Included within 'Other' above is goodwill arising on various acquisitions that have been allocated to eight CGUs which are, individually, insignificant. The

pre-tax discount rate represents the weighted average pre-tax discount rate.

During 2025, the Group recognised a total impairment charge to goodwill of £277 million (2024: £39 million) of which £72 million (2024: nil) is in respect

of Peru,£21 million (2024: £39 million) is in respect of Malaysia and £184 million (2024: nil) is in respect of Canada. For more details, see notes 12(e)(v),

12(e)(vi) and 12(e)(vii) respectively.

The recoverable amounts of all CGUs have been determined on a value-in-use basis. The key assumptions for the recoverable amounts of all units are the

projected sales volumes and pricing (net revenues) and terminal value growth rates, which directly impact the cash flows, and the discount rates used in the

calculation. The terminal value growth rate is used purely for the impairment testing of goodwill under IAS 36 *Impairment of Assets* and does not reflect

long-term planning assumptions used by the Group for investment proposals or for any other assessments.

A post-tax discount rate is applied in the impairment testing, determined using an appropriate valuation methodology that incorporates both internal data and

externally sourced market information. This applies to all CGUs with the exception of Reynolds American, for which the discount rate is independently

determined based on a weighted average cost of capital in respect of the U.S. and U.S. market-related premiums. A similar approach in respect of the

discount rate has been applied for the impairment testing of the trademarks and similar intangibles. Valuations derived from applying post-tax discount rates

to post-tax cash flows are aligned to those that would arise from applying pre-tax discount rates to pre-tax cash flows.

The terminal value growth rates and discount rates have been applied to the budgeted cash flows of each CGU. These cash flows have been determined by

local management based on experience, specific market and brand trends, as well as pricing and cost expectations. These have been endorsed by Group

management as part of the consolidated Group's approved budget.

**(v) Impairment testing – Goodwill (excluding Reynolds American and Canada)**

The value-in-use calculations use cash flows based on detailed financial budgets prepared by management covering a one-year period extrapolated over a 10-year

horizon with growth of 3% (2024: 3%) in years two to ten, after which a growth rate of 1% (2024: 1%) has been assumed as the long-term volume decline is more

than offset by pricing to drive revenue growth. A 10-year horizon is considered appropriate based on the Group's history of profit and cash growth, its well-

balanced portfolio of brands and the industry in which it operates.

For the Peru CGU, as a result of ongoing difficult trading conditions, an impairment trigger was identified at the half year and a full impairment review was

undertaken. The value-in-use calculation reflects the short- to medium-term plans spanning a period of five years after which a terminal value growth rate of

-4% has been assumed. As a result of the review, the goodwill associated with the CGU was impaired in full with a charge of £72 million (2024: nil) being

recognised.

For the Malaysia CGU, as a result of regulatory and macro-economic conditions, the above assumptions were amended to reflect the short- to medium-term

plans spanning a period of five years after which a terminal value growth rate of -1.4% has been assumed. The Malaysian government announced new

regulations under the Control of Smoking Products for Public Health Act 2024, which came into effect in 2025 and has impacted the sale of tobacco and

vapour products. As a result of the impact of the new regulations, the Group exited the vapour market in Malaysia and, as a result, goodwill associated with

the Malaysia CGU has been impaired by £21 million (2024: £39 million). The carrying amount indicated in the table above in note 12(e)(iv) reflects the

recoverable amount of the CGU, being its value-in-use.

For the Australia CGU, as a result of regulatory and macro-economic conditions, the above assumptions were amended to reflect the short- to medium-term

plans spanning a period of five years after which a terminal value growth rate of -0.8% has been assumed. For 2025, the discount rate disclosed in the table

above is a weighted average rate applied across the different components that form the Australian CGU.

Following the application of a reasonable range of sensitivities to all CGUs, there was no reasonably possible scenario identified that would lead to a

potential impairment charge.

British American Tobacco p.l.c. Form 20-F 2025<br>

**(vi) Impairment testing – Reynolds American**

**Goodwill and the brand intangibles relating to Reynolds American**

Subsequent to the FDA announcement on 28 April 2022 of a proposed product standard to prohibit menthol as a characterising flavour in cigarettes, the FDA

formally submitted the final product standard to the Office of Management and Budget on 18 October 2023. Following delays, in January 2025, the new

Trump Administration withdrew the rule from the Office of Management and Budget. The Spring 2025 Unified Agenda was released on 4 September 2025

wherein the menthol ban rule was no longer listed on the Long-Term Actions list and was instead designated as "withdrawn".

On 21 June 2022, the FDA announced plans to develop a proposed product standard that would establish a maximum nicotine level in cigarettes and certain

other combustible tobacco products to reduce addictiveness. On 15 January 2025, in the final days of the outgoing Biden Administration, the FDA issued a

proposed product standard whereby the agency would limit nicotine levels in cigarettes following a two-year effective date from publication of any final rule.

However, on 20 January 2025, President Trump issued a memorandum entitled 'Regulatory Freeze Pending Review' which froze all rules and proposed rules

pending review by the new Administration. The Spring 2025 Unified Agenda was released on 4 September 2025. The rule was no longer listed on the Long-

Term Actions list and was instead designated as "withdrawn".

It is management's view that neither rule will be advanced during the Trump Administration ending in 2029, though the risk remains that a future

administration may do so. However, given the extensive rule making process, it would be unlikely that a rule would be implemented within the five year

discrete forecast period used for impairment testing. Management notes that the timetable for and likelihood of any product standard in respect of either

menthol as a characterising flavour or nicotine levels in cigarettes remains uncertain. It is also noted that the Group has a long-standing track record of

managing regulatory shifts and, in the event of regulatory change, the Group remains confident in its ability to navigate that environment successfully.

Noting the above, for the intangibles impairment assessment, neither a federal menthol ban nor any rule limiting nicotine levels in cigarettes was assumed in

the cash flow forecast used as the basis for the valuations performed. The value-in-use calculation for the total U.S. CGU and the fair value calculations for

the brand intangibles have been determined based on a single cash flow forecast. This is a change from the approach in 2022, 2023 and 2024 whereby the

value-in-use calculation for the total U.S. CGU and the fair value calculations for the brand intangibles were determined based on probability weighted

scenarios, incorporating various assumptions on the potential timing for a final product standard to prohibit menthol as a characterising flavour in cigarettes

becoming effective, to derive a risk-adjusted cash flow forecast applied within the valuations.

The cash flow forecast for the remaining indefinite-lived brand Grizzly, as mentioned in note 12(e)(ii) above, has been incorporated in the cash flow forecast

used in the Reynolds American goodwill model. Similarly, the model also incorporates a five-year cash flow forecast for the definite-lived brands, based on

detailed brand budgets prepared by management using projected sales volumes and pricing (net revenue) and projected brand profitability. After this forecast,

a terminal value growth rate of 1.0% (2024: 1.0%) has been assumed for the Reynolds American cash-generating unit.

For the Grizzly brand impairment test, a terminal value growth rate of 1.0% (2024: 1.0%) is also applied. Following an update of the recoverable amount

based on the fair value less cost of disposal for Grizzly, management concluded that the carrying value of the brand is supported by cash flows generated by

the combined Traditional Oral and Grizzly Modern Oral product portfolio. There is significant judgement with regard to assumptions and estimates involved

in the forecasting of future cash flows, which form the basis of the fair value calculation, and this is particularly true given the launch of the Grizzly Modern

Oral product in 2024. A detailed external study was commissioned in 2023 and updated in 2024 and 2025 to assist management with an independent view of

the potential impacts on volume forecasts of cross-category use of Modern Oral products by Traditional Oral consumers to inform our forecast for the

evolution of industry volumes for both Traditional Oral and Modern Oral and the potential share of market for the latter that a Grizzly product offering can

achieve.

As explained in note 12(e)(iii), the impairment test calculations for Newport, Camel, Pall Mall and Natural American Spirit use cash flows based on detailed

brand budgets prepared by management over a five-year horizon after which volume decline, pricing and margin assumptions are extrapolated over the

remaining useful life.

The excess of recoverable amount over the carrying value (headroom) of the Reynolds American cash-generating unit and the Newport, Camel, Pall Mall,

Natural American Spirit and Grizzly brand intangibles would be reduced to nil if the following individual changes were made to the key assumptions used in

the impairment model.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Reynolds** <br>**American** <br>**goodwill**<br>| **Newport** | **Camel** | **Pall Mall** | **Natural** <br>**American** <br>**Spirit**<br>| **Grizzly** |
| Current headroom | £m | **42241** | **1676** | **2724** | **2399** | **544** | **773** |
| **Assumptions:** |  |  |  |  |  |  |  |
| Decrease in volume year-on-year in the discrete period by an <br>additional \*<br>| % |  | **(0.9)** | **(3.6)** | **(9.6)** | **(0.5)** | **(1.6)** |
| Increase in pre-tax discount rate by | % | **4.1** | **1.4** | **5.9** | **16.6** | **0.7** | **0.5** |
| Decrease in terminal value growth rate by\*\* | % | **(4.3)** |  |  |  |  | **(0.6)** |

---

**Notes:**

\*Brand Intangibles only. Volume sensitivity results in a proportional reduction in both net revenue and direct costs with no impact to operating margin %. Fixed overhead cost allocations remain flat. This

demonstrates a year-on-year decrease in operating cash flow for the discrete forecast years for Grizzly and the remaining useful lives for other definite-lived trademarks. Before sensitising, the CAGRs over the

remaining useful lives following the discrete period are as follows – Newport: -10.9%, Camel: -10.7%, Pall Mall: -15.7% and Natural American Spirit: -7.6%.

\*\*Goodwill and Grizzly indefinite-lived brand intangible only.

**(vii) Impairment testing – Canada**

**Goodwill relating to Imperial Tobacco Canada Ltd (ITCAN)** 

In March 2019, ITCAN obtained an Initial Order from the Ontario Superior Court of Justice granting it protection under the Companies' Creditors

Arrangement Act (CCAA). Under a confidential court supervised mediation process, ITCAN began the process of negotiating a possible settlement of all of

its outstanding tobacco litigation in Canada while continuing to run its business in the normal course. On 17 October 2024, the court-appointed mediator and

monitor filed a proposed plan of compromise and arrangement in the Ontario Superior Court of Justice. Substantially similar proposed plans were also filed

for RBH and JTIM (collectively, the Proposed Plans).

Under the Proposed Plans, ITCAN, RBH and JTIM (the Companies) would pay an aggregate settlement amount of CAD$32.5 billion (£17.6 billion at 31

December 2025) (the Global Settlement Amount). This amount would be funded by:

–an upfront payment equal to all the Companies' cash and cash equivalents on hand (including investments held at fair value) plus certain court deposits

(subject to an aggregate industry holdback of CAD$750 million (£407 million)) plus 85% of any cash tax refunds that may be received by the Companies

on account of the upfront payments; and

–annual payments based on a percentage (initially 85%, reducing over time) of each of the Companies' net income after taxes, based on amounts generated

from all sources, excluding New Categories, until the aggregate settlement amount is paid. The performance of ITCAN's New Categories (including

vapour products and nicotine pouches) is not included in the basis for calculating the annual payments.

British American Tobacco p.l.c. Form 20-F 2025<br>

On 31 October 2024, the court granted the Claims Procedure Orders and Meeting Orders. In accordance with the Meeting Order, a creditors' meeting was

held on 12 December 2024 and the Proposed Plans were approved by the requisite majorities of the creditors. A sanction hearing took place between 29-31

January 2025. During the sanction hearing, the court was asked to sanction the Proposed Plans. Motions for orders to amend elements of the Proposed Plans

were presented on 27 February 2025. The requested amendments to the Proposed Plans resulted in allocating the cash holdback of CAD$750 million

(£407 million at 31 December 2025 rate of exchange) from the upfront payment to RBH. On 3 March 2025, the court approved that the Proposed Plans be

amended accordingly (the Amended Plans).

On 6 March 2025, the court sanctioned the Amended Plans, herein referred to as the Approved Plans. In this sanction order, the court also extended the Stays

of litigation up to the implementation date of the Approved Plans.

On 29 August 2025 following completion of a number of administrative steps, the Approved Plans were implemented and ITCAN exited the CCAA process.

In the second half of 2025, the anticipated upfront payment was paid into the Global Settlement Trust Account as the Upfront Cash Contribution of the

Global Settlement Amount. Refer to the 'Upfront payment' section in note 24 for more details.

The Approved Plan for ITCAN resolves all Canadian tobacco litigation and provides a full and comprehensive release to ITCAN, BAT p.l.c. and all related

companies for all past, present and future tobacco claims in Canada.

The value-in-use calculation for the Canada CGU has been prepared based on a five-year cash flow forecast, after which a terminal value rate of decline of

3.65% (2024: decline of 3.65%) on the underlying business is assumed. In line with the requirements of IAS 36, the value-in-use derived from the forecast

cash flows has been adjusted to include the book value of the provision recognised in respect of the Approved Plans and the liability is included within the

carrying value of the Canada CGU for the purposes of the impairment test.

A pre-tax discount rate of 11.4% (2024: 9.8%) has been assumed. Further details on the provision for the liability associated with the Approved Plans and the

discount rate applied to such provision, which differs to that applied for the impairment assessment, can be found in note 24.

As a result of a rebasing of forecasts reflecting the current difficult trading environment, an impairment charge of£184 million has been recognised in respect

of goodwill associated with the Canada CGU. The remaining carrying value, as disclosed in note 12(e)(iv), reflects the recoverable amount, being the value-

in-use of the CGU.

The table below indicates the additional amount of impairment that would be required if the following individual changes were made to key assumptions

within the value-in-use model.

---

| | |
|:---|:---|
| | Additional <br>impairment<br>£m<br>|
| **Assumptions** |  |
| Decrease in volume by 3% year-on-year\* | **(355)** |
| Decrease in five-year pricing CAGR by additional 1% | **(110)** |
| Increase in pre-tax discount rate by 100 bps | **(116)** |

---

**Note:**

\*Volume sensitivity results in a proportional reduction in both net revenue and direct costs with no impact to other operating costs which remain flat. This demonstrates a year-on-year decrease in operating cash

flow for the forecast years.

British American Tobacco p.l.c. Form 20-F 2025<br>

**13 Property, plant and equipment**

**(a) Overview of property, plant and equipment, including right-of-use assets**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | <br>**Freehold**<br>**property**<br>**£m**<br>| <br>**Leasehold**<br>**property**<br>**£m**<br>| <br>**Plant,**<br>**equipment and** <br>**other owned**<br>**£m**<br>| <br>**Plant,** <br>**equipment and** <br>**other leased**<br>**£m**<br>| <br>**Assets in the**<br>**course of** <br>**construction**<br>**£m**<br>| **2025**<br>**Total**<br>**£m**<br>|
| **1 January** |  |  |  |  |  |  |
| Cost | **1360** | **888** | **5566** | **437** | **601** | **8852** |
| Accumulated depreciation and impairment | **(493)** | **(431)** | **(3293)** | **(256)** |  | **(4473)** |
| **Net book value at 1 January** | **867** | **457** | **2273** | **181** | **601** | **4379** |
| Differences on exchange | **1** | **3** | **(17)** | **(5)** | **5** | **(13)** |
| Additions |  |  |  |  |  |  |
| – right-of-use assets | **—** | **60** | **—** | **77** | **—** | **137** |
| – separately acquired | **—** | **—** | **17** | **—** | **543** | **560** |
| Reallocations | **51** | **28** | **431** | **(3)** | **(507)** | **—** |
| Depreciation | **(36)** | **(96)** | **(307)** | **(82)** | **—** | **(521)** |
| Impairment | **(1)** | **(11)** | **(33)** | **—** | **10** | **(35)** |
| Right-of-use assets - reassessments, modifications <br>and terminations<br>| **—** | **(2)** | **—** | **(3)** | **—** | **(5)** |
| Disposals | **(3)** | **(2)** | **(10)** | **(1)** | **—** | **(16)** |
| Net reclassifications as held-for-sale | **—** | **(1)** | **—** | **—** | **(2)** | **(3)** |
| **31 December** |  |  |  |  |  |  |
| Cost | **1402** | **883** | **5909** | **432** | **650** | **9276** |
| Accumulated depreciation and impairment | **(523)** | **(447)** | **(3555)** | **(268)** |  | **(4793)** |
| **Net book value at 31 December** | **879** | **436** | **2354** | **164** | **650** | **4483** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | <br>Freehold<br>property<br>£m<br>| <br>Leasehold<br>property<br>£m<br>| <br>Plant,<br>equipment and <br>other owned<br>£m<br>| <br>Plant, <br>equipment and <br>other leased<br>£m<br>| <br>Assets in the<br>course of <br>construction<br>£m<br>| 2024<br>Total<br>£m<br>|
| **1 January** |  |  |  |  |  |  |
| Cost | 1418 | 895 | 5702 | 375 | 654 | 9044 |
| Accumulated depreciation and impairment | (437) | (443) | (3360) | (221) |  | (4461) |
| **Net book value at 1 January** | 981 | 452 | 2342 | 154 | 654 | 4583 |
| Differences on exchange | (29) | (26) | (139) | (4) | (37) | (235) |
| Additions |  |  |  |  |  |  |
| – right-of-use assets |  | 152 |  | 105 |  | 257 |
| – separately acquired |  |  | 23 |  | 469 | 492 |
| Reallocations | 87 | 13 | 385 |  | (485) |  |
| Depreciation | (35) | (97) | (291) | (74) |  | (497) |
| Impairment | (89) | (41) | (41) | (2) |  | (173) |
| Right-of-use assets - reassessments, modifications <br>and terminations<br>|  | 8 |  | 2 |  | 10 |
| Disposals | (48) | (3) | (6) |  |  | (57) |
| Net reclassifications as held-for-sale |  | (1) |  |  |  | (1) |
| **31 December** |  |  |  |  |  |  |
| Cost | 1360 | 888 | 5566 | 437 | 601 | 8852 |
| Accumulated depreciation and impairment | (493) | (431) | (3293) | (256) |  | (4473) |
| **Net book value at 31 December** | 867 | 457 | 2273 | 181 | 601 | 4379 |

---

Refer to notes 4 and 7 for more information on property, plant and equipment impairments, except for assets in the course of construction.

Included in additions in 2025 is an amount of £8 million (2024: £30 million) related to sustainability as explained in note 33. Also in 2025, an impairment of

£12 million for some assets in the course of construction was reversed as a use for these assets could be found elsewhere. The £3 million of assets classified

as held-for-sale in 2025 relates to Brascuba, as discussed in note 27(d)(i).

As discussed in note 5(b), in 2024, the Group completed certain sale and leaseback transactions. The cash flow effect of these transactions was £37 million.

The Group has £72 million of future contractual commitments (2024: £67 million) related to property, plant and equipment.

British American Tobacco p.l.c. Form 20-F 2025<br>

**(b) Right-of-use assets**

In accordance with IFRS 16 *Leases*, the right-of-use assets related to leased properties have been included in the asset class 'Leasehold Property' (note 13(c))

and other right-of-use assets have been reported under 'Plant, equipment and other leased'.

The Group leases various offices, warehouses, retail spaces, equipment and vehicles through its subsidiaries across the globe. Arrangements are entered into

in the ordinary course of business, and lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions reflecting

local commercial practice. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor.

Leased assets may not be used as security for borrowing purposes.

Assets representing 'plant, equipment and other leased' relate to leases of various assets including industrial equipment and distribution vehicles in Brazil,

Canada, China, Italy, Mexico, Pakistan, Romania, the UK, the U.S. and other countries.

**(c) Leasehold property**

As of 31 December 2025, the Group holds £111 million (2024: £95 million) of leasehold properties acquired and another £325 million (2024: £362 million)

of right-of-use leased properties.

Assets representing 'leasehold property' relate to leases in respect of offices, retail space, warehouses and manufacturing facilities occupied by Group

subsidiaries and include property leases with lease terms of more than five years in Bangladesh, Brazil, China, Germany, Italy, Nigeria, Pakistan, Singapore,

the U.S. and Vietnam, amongst other countries. In addition, capitalised expenditure representing leasehold improvements is included in this asset class.

---

| | | |
|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>|
| **Leasehold land and property comprises** |  |  |
| – net book value of long leasehold | **21** | 22 |
| – net book value of short leasehold | **415** | 435 |
|  | **436** | 457 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
| **Leasehold property net book value movements for the year ended 31** <br>**December 2025**<br>| **Net book value at** <br>**1 January**<br>**£m**<br>| **Differences on** <br>**exchange**<br>**£m**<br>| **Depreciation and** <br>**impairment**<br>**£m**<br>| **Other net** <br>**movements**<sup>\*</sup><br>**£m**<br>| **Net book value at** <br>**31 December**<br>**£m**<br>|
| – Property acquired (IAS 16) | **95** | **7** | **(14)** | **23** | **111** |
| – Right-of-use properties (IFRS 16) | **362** | **(4)** | **(93)** | **60** | **325** |
|  | **457** | **3** | **(107)** | **83** | **436** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  | 2024 |
| Leasehold property net book value movements for the year ended 31 <br>December 2024<br>| Net book value at 1 <br>January<br>£m<br>| Differences on <br>exchange<br>£m<br>| Depreciation and <br>impairment<br>£m<br>| Other net <br>movements\*<br>£m<br>| Net book value at <br>31 December<br>£m<br>|
| – Property acquired (IAS 16) | 147 | (7) | (50) | 5 | 95 |
| – Right-of-use properties (IFRS 16) | 305 | (19) | (88) | 164 | 362 |
|  | 452 | (26) | (138) | 169 | 457 |

---

**Note:**

\*Property acquired (IAS 16 *Property, plant and equipment*) other net movements for leasehold improvements represent additions (directly acquired and/or transferred from assets in the course of construction) net

of disposals, whereas other net movements for right-of-use properties (IFRS 16) relate to new leases net of reassessments, modifications and terminations as reported in the Property, plant and equipment

movement table in note 13(a).

**(d) Freehold property**

As of 31 December 2025, the Group owns freehold property amounting to £879 million (2024: £867 million), representing factories, warehouses and office

buildings, together with adjoining land, mainly in the U.S., the UK, Bangladesh, Indonesia and Croatia.

---

| | | |
|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>|
| **Cost of freehold land within freehold property on which no depreciation is provided** | **147** | 151 |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

**14 Investments in associates and joint ventures**

---

| | | |
|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>|
| **1 January** | **1902** | 1970 |
| Total comprehensive income (note 9) | **646** | 559 |
| Dividends | **(386)** | (447) |
| Additions (note 27(b)(ii)) | **34** | 48 |
| Disposals (note 27(b)(i)) | **(167)** | (227) |
| Changes in associate's business undertakings – demerger of ITC Hotels | **(533)** |  |
| Other equity movements | **25** | (1) |
| **31 December** | **1521** | 1902 |
| Non-current assets | **947** | 1230 |
| Current assets | **1056** | 1205 |
| Non-current liabilities | **(98)** | (97) |
| Current liabilities | **(384)** | (436) |
|  | **1521** | 1902 |
| ITC Ltd. (Group's share of the market value is £9,558 million (2024: £14,357 million)) | **1348** | 1762 |
| Other listed associates (Group's share of the market value is £184 million (2024: £224 million)) | **127** | 98 |
| Unlisted associates | **46** | 42 |
|  | **1521** | 1902 |

---

The principal associate undertaking of the Group is ITC Ltd. (ITC). Included within the dividends amount of £386 million (2024: £447 million) are £376

million (2024: £434 million) attributable to dividends declared by ITC.

**ITC Ltd.**

ITC is an Indian conglomerate based in Kolkata with interests in cigarettes, paper and packaging, agri-business, other fast-moving goods (e.g. confectionery,

branded apparel, personal care, stationery and safety matches) and, up until the date of demerger (as described below), hotels. BAT's interest in ITC is 22.91%.

ITC prepares accounts on a quarterly basis with a 31 March year-end. As permitted by IAS 28*Investments in associates and joint ventures*, results up to 30

September 2025 have been used in applying the equity method. This is driven by the availability of information at the half-year, to be consistent with the treatment in

the Group's interim accounts. Any further information available after the date used for reporting purposes is reviewed and any material items adjusted for in the final

results. The latest published information available is at 31 December 2025.

---

| | | |
|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>|
| Non-current assets | **3605** | 4456 |
| Current assets | **3872** | 4152 |
| Non-current liabilities | **(304)** | (306) |
| Current liabilities | **(1287)** | (1376) |
|  | **5886** | 6926 |
| **Group's share of ITC Ltd. (2025: 22.91%; 2024: 25.45%)** | **1348** | 1762 |

---

On 28 May 2025, the Group announced the divestment of 313,000,000 ordinary shares held in ITC, representing 10%of the Group's equity stake (the

equivalent of 2.5% of ITC's ordinary shares). Refer to note 27(b)(i) for further details.

On 13 March 2024, the Group announced the divestment of 436,851,457 ordinary shares held in ITC, representing12% of the Group's equity stake (the

equivalent of 3.5% of ITC's ordinary shares). Refer to note 27(b)(i) for further details.

On 24 July 2023, ITC announced a proposed demerger of its 'Hotels Business' under a scheme of arrangement by which 60% of the newly incorporated

entity would be held directly by ITC's shareholders proportionate to their shareholding in ITC. In January 2025, ITC Hotels Limited (ITC Hotels) was listed

and commenced trading on the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE). The Group's direct stake in ITC Hotels was

15% at that time and was recognised as an investment held at fair value (refer to note 18).

**Organigram Global Inc.**

On 11 March 2021, the Group announced a strategic collaboration agreement with Organigram Inc., a wholly owned subsidiary of publicly traded

Organigram Global Inc. (collectively, Organigram). Under the terms of the transaction, a Group subsidiary acquired a 19.90% equity stake in Organigram

Global Inc. (listed on both the Nasdaq and Toronto Stock Exchange under the symbol 'OGI') to become its largest shareholder. Due to subsequent

acquisitions carried out by Organigram and the Group's additional investments, referred to below, the Group's effective interest in Organigram for equity

accounting purposes at the end of 2025 was 36.77% (2024: 35.09%) of which common shares accounted for 26.90% (2024: 27.82%) and preferred shares for

9.87% (2024: 7.27%). Organigram prepares accounts on a quarterly basis with a 30 September year-end. As permitted by IAS 28, results up to 30 September

2025 have been used in applying the equity method.

No impairment has been recognised during the year and the carrying value of this investment as at 31 December 2025 was £94 million (2024: £65 million).

Management will continue to monitor the carrying value, in line with IAS 36, over the course of future periods.

In November 2023, the Group announced the signing of an agreement for a further investment in Organigram. At 31 December 2023, the proposed

investment of CAD$125 million (£74 million) was subject to customary conditions, including necessary approvals by the shareholders of Organigram, which

was given on 18 January 2024. On 24 January 2024, BAT made the first tranche investment of CAD$42 million (£24 million) acquiring a further 12,893,175

common shares of Organigram at a price of CAD$3.22 per share. On 30 August 2024, BAT made the second tranche investment of CAD$42 million

(£24 million) acquiring a further 4,429,740 common shares and 8,463,435 preferred shares of Organigram at a price of CAD$3.22 per share. Goodwill of

£5 million was recognised following these investments which has been recognised net of fair value of the embedded derivative in relation to the investment

agreement. On 28 February 2025, the Group made the third and final tranche investment in Organigram for CAD$42 million (£23 million) subscribing for

British American Tobacco p.l.c. Form 20-F 2025<br>

7,562,447 common shares and 5,330,728 preferred shares at the same price as the previous two tranches. Under the terms of the agreement, the Group's

voting rights are restricted to 30%.

**Charlotte's Web Holdings Inc.**

In November 2022, the Group announced a £48 million investment in Charlotte's Web Holdings, Inc. (Charlotte's Web). Based in Colorado, USA, and listed

on the Toronto Stock Exchange, Charlotte's Web holds a prominent position in innovative hemp extract wellness products. The Group's investment has been

made via a seven-year convertible debenture which is convertible at the Group's discretion into a non-controlling equity stake in Charlotte's Web of around

19.9%. As part of the investment agreement, the Group has the right to appoint directors to the board of Charlotte's Web. However, given the investment

does not give the Group any current right to a share of the earnings or net assets of the investee, the investment has been classified as an investment at fair

value through profit and loss (see note 18). On conversion of the loan note, the Group would equity account for its investment.

**Other**

During the year, the Group further invested £3 million in Awake Corporation (Awake) increasing our interest to 41.6%. Previous to the additional

investment, the Group classified the investment as fair value through other comprehensive income. Following the additional investment, the Group applied

equity accounting and the carrying value of Awake as at 31 December 2025 is £11 million of which goodwill is £10 million.

In 2025, the Group fully impaired its investment in Steady State LLC resulting to a loss of £6 million.

In December 2025, the Group disposed of its fully written off investment in Samfruit JSC for consideration of nil.

**15 Retirement benefit schemes**

The Group's subsidiary undertakings in multiple jurisdictions operate various funded and unfunded defined benefit schemes, including pension and post-

retirement healthcare schemes, and defined contribution pension schemes, with the Group's most significant arrangements being in the U.S., the UK,

Canada, Germany, Switzerland and the Netherlands. Together, schemes in these territories account for over 90% of the total underlying obligations of the

Group's defined benefit arrangements and over 60% of the current service cost.

Pension obligations consist mainly of final salary pension schemes which provide benefits to members in the form of a guaranteed level of pension payable

for life. The level of benefits provided depends on members' length of service and their salary in the final years leading up to retirement. In addition, the

Group operates several healthcare benefit schemes, of which the most significant are in the U.S. and Canada. The majority of defined benefit schemes allow

for the future accrual of benefits. With the exception of arrangements required under local regulations, most of the Group's arrangements are closed to new

entrants.

The liabilities arising in respect of defined benefit schemes are determined in accordance with the advice of independent, professionally qualified actuaries,

using the projected unit credit method. It is Group policy that all schemes are formally valued at least every three years. The costs of such plans are

recognised in the Group income statement within operating profit as part of employment costs. Service costs are spread systematically over the expected

service lives of employees with past service costs or credits, the impact of settlements and curtailments, and the net interest on the net defined benefit deficit

or surplus recognised in the periods in which they arise. Actuarial gains and losses and surplus restrictions are recognised immediately in other

comprehensive income. Benefits provided through defined contribution schemes are charged as an expense as payments fall due.

Through its defined benefit pension schemes and healthcare benefit schemes, the Group is exposed to a number of risks, including:

–Asset volatility: The scheme liabilities are calculated using discount rates set by reference to bond yields. If scheme assets underperform this yield, e.g. due

to stock market volatility, this may create a deficit. However, most funded schemes hold a proportion of assets which are expected to outperform bonds in

the long-term, and the majority of schemes by value are subject to local regulations regarding funding deficits. In addition, schemes in the UK and Canada

have purchased insurance contracts which exactly match the valuation volatility of all or part of the scheme liabilities.

–Changes in bond yields: A decrease in corporate bond yields will increase scheme liabilities, although this will be partially offset by an increase in the

value of the schemes' bond holdings, 'buy-in' insurance assets or other hedging instruments.

–Inflation risk: Some of the Group's pension obligations are linked to inflation, and higher inflation will lead to higher liabilities, although inmost cases,

caps on the level of inflationary increases are in place in the scheme rules, while some assets and derivatives provide specific inflation protection.

–Life expectancy: The majority of the schemes' obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an

increase in the plans' liabilities. Assumptions regarding mortality and mortality improvements are regularly reviewed in line with actuarial tables and

scheme specific experience.

The Group has an internal body, the Pensions Executive Committee (PEC), that is chaired by the Group Finance Director. The PEC sets and oversees a set of

philosophies, policies and practices in respect of post-employment benefits including, but not limited to, design, funding, investment strategy, risk

management and governance. It also reviews significant changes to defined benefit schemes in the countries with the most significant liabilities, and defined

contribution schemes in the countries with the most significant costs. Significant changes to defined benefit arrangements include scheme closures to future

accrual and risk management exercises such as the 'buy-in' and 'buy-out' transactions referred to below.

A 'buy-out' transaction is where a pension scheme derecognises all (or part) of its liabilities, removing it from the balance sheet, by permanently transferring

those obligations from the sponsoring employer to a third-party provider and eliminating all further legal orconstructive obligation to the pension scheme or

to the sponsoring employer. By contrast, with a 'buy-in' transaction the scheme liabilities remain on the balance sheet and the sponsoring employer remains

responsible for the fulfilment of the pension obligations. However, these obligations are de-risked through the purchase of an insurance product designed to

match the underlying cash flows ofthe pension liability reducing the risks associated with improved longevity and interest and discount rate movements. The

Group consequently benefits from the 'buy-in' as it reduces the individual scheme's reliance on the Group for future cash funding requirements.

All of the Group's arrangements, including funded schemes where formal trusts or equivalents are required, have been developed andareoperated in

accordance with local practices and regulations where applicable in the countries concerned. Responsibility for thegovernance of these schemes, including

specific investment decisions and funding contribution schedules, generally lies with thetrustees, or equivalent bodies, of each arrangement. The trustees will

usually consist of representatives appointed by both the sponsoring company and the beneficiaries.

The funded arrangements in the Group have policies on investment management, including strategies over a preferred long-term investment profile, and

schemes in certain territories including Canada and the Netherlands manage their bond portfolios to match theweighted average duration of scheme

liabilities. In addition, as noted below, certain arrangements in the UK, Canada and the Netherlands have been de-risked through the purchase of insurance

policies. The majority of funded schemes are subject to local regulations regarding funding requirements. Contributions to defined benefit schemes are

determined after consultation with the respective trustees and actuaries ofthe individual externally funded schemes, and after taking into account regulatory

requirements in each territory. The Group's contributions to funded defined benefit schemes in 2026 in total are expected to be £22 million compared to

£20 million in 2025.

***U.S.***

In the U.S., the main funded pension plan is the Reynolds and Affiliates Pension Plan (RAPP) which was formed at the end of 2022 through a merger of the

Reynolds American Retirement Plan (PEP) and the Retirement Income Plan for Certain RAI Affiliates (Affiliates). The only funded healthcare scheme is the

Brown & Williamson Tobacco Corporation Welfare & Fringe Benefit Plan. Each of the above were established with corporate trustees that are required to

British American Tobacco p.l.c. Form 20-F 2025<br>

run the plan in accordance with the plan's rules and to comply with all relevant legislation, including the Employee Retirement Income Security Act of 1974.

The corporate trustees act as custodians with a committee of local management acting in a fiduciary capacity with regard to investment decisions, risk

mitigation and administration of the arrangements. Contributions to the various funded plans are agreed with the named fiduciary, scheme actuaries and the

committee of local management after taking account of statutory requirements including the Pension Protection Act of 2006, as amended. Through its U.S.

subsidiaries, the Group may make contributions, either as required by statutory requirements or at the discretion of the Group. As discussed further below, as

of 31 December 2025, the Reynolds American Pension Plan was reporting a surplus and is greater than 100% funded, with the aim ofremaining fully funded

in the long-term. During 2025, the Group contributed £5 million (2024: £10 million) to its funded pension and post-retirement plans in theU.S. The Group

does not expect to make significant contributions in 2026.

With effect from 31 December 2024, accrual has ceased for salaried U.S. employees who participate in the qualified (RAPP) and non-qualified pension

plans. A past service credit of £18 million was recognised on the difference between the salary increase assumption for active members and the inflation

assumption for deferred members at the date of the plan amendment and curtailment of benefits.

For funded plans in the U.S., the trustees employ a risk mitigation strategy which seeks to balance pension plan returns with a reasonable level of funded

status volatility. Based on this framework, the asset allocation has two primary components. The first component is the hedging portfolio, which primarily

consists of extended duration fixed income holdings (typically U.S. Government and investment grade corporate bonds) and, to a lesser extent, derivatives

used to match the majority of the interest rate risk associated with the benefit obligations, thereby reducing expected funded status volatility. The second

component is the return-seeking portfolio, which is designed to enhance portfolio returns. The return-seeking portfolio is broadly diversified.

At 31 December 2025, the Reynolds and Affiliates Pension Plan was reporting a surplus under IAS 19 in total of £533 million (2024: £507 million). Under

the rules of this plan, after assuming the gradual settlement of the plan liabilities over the lives of the arrangements, the majority of any surplus would be

repurposed for other existing or replacement benefit plans. Residual amounts returnable to the Group in the event of a termination or other distribution would

trigger an excise charge and, accordingly, a surplus restriction of £54 million (2024: £14 million) has been recognised.

In addition to the above, assets and liabilities of £34 million and £35 million, respectively, in relation to a legacy U.S. arrangement acquired with the Imasco

Limited transaction in 2000 were settled during the year.

***United Kingdom***

In the UK, the main pension arrangement is the British American Tobacco UK Pension Fund (UKPF), which is established under trust law and has a

corporate trustee (the UK Trustee) that is required to run the scheme in accordance with the UKPF's Trust Deed and Rules and to comply with the Pension

Scheme Act 1993, Pensions Act 1995, Pensions Act 2004 and all other relevant legislation. The UKPF was closed to new members from 1 April 2005, and

with effect from 1 July 2020, UKPF was closed to further accrual of benefits with all active members becoming deferred members.

As part of its risk management strategy, on 31 May 2019, the UK Trustee entered into a buy-in agreement with Pension Insurance Corporation plc (PIC) to

acquire an insurance policy with the intent of matching a specific part of the UKPF's future cash flows arising from the accrued pension liabilities of retired

and deferred members and improving the security to the UKPF and its members. On 19 May 2021, the UK Trustee entered into an agreement with PIC to

acquire a second buy-in policy with PIC, and on 26 October 2022, a third and final buy-in policy was acquired with PIC. The premiums paid on each buy-in

transaction were subject to a subsequent true-up process to take account of data verification and changes in membership data and this process was concluded

on 29 August 2025 with a net payment to the UKPF of £20 million which has been recognised within actuarial gains and losses on plan assets.

On 19 September 2025, the UK Trustee entered into a buy-out transaction with PIC with the premium of £28 million being paid on 22 September 2025 by

the UK Trustee from Fund assets at that time. A member communication, confirming the UK Trustee decisions regarding the buy-out, proposed distribution

of surplus assets to the Group and the initiation of a formal wind-up process, which is supported by the Group, has been issued to scheme members. The

second statutory surplus notice was issued to members in January 2026 confirming the UK Trustee decision to return the remaining surplus to the sponsoring

employer less applicable tax. The Group will have exposure to certain contingent risks as a result of the buy-out and wind-up process which are not

considered to be material.

The buy-out process will not conclude until the liabilities of the UKPF have been formally extinguished by the issuance of individual insurance contracts to

all scheme members, which is scheduled for the first half of 2026. Consequently, the Group has continued to report and value the liabilities of the UKPF at

31 December 2025. The value of the liabilities (and matching assets) at this date was £1,845 million. The settlement cost of these liabilities, represented by

the additional premium, has been recognised as a charge and an adjusting item in the current year.

On 16 March 2023, the Schedule of Contributions was amended to remove any funding commitment for the foreseeable future, which was reconfirmed in the

Schedule of Contributions dated 17 December 2023. Consequently, no contributions were made to the UKPF in 2025 or 2024 and given the proposed wind-

up of the trust, no further contributions are expected in future.

The formal triennial actuarial valuation of the UKPF was last carried out with an effective date of 31 March 2023. This showed that UKPF had a surplus of

£111 million on a technical provisions basis, in accordance with the statutory funding objective. Under IAS 19, this was reported as a net retirement benefit

asset of £142 million (2024: £169 million). Under the UKPF scheme rules, the UK Trustee does not have a unilateral power to commence a wind up of the

UKPF, and the Group has historically recognised a surplus as an unconditional right to a refund assuming the gradual settlement of the UKPF liabilities over

the life of the scheme with any future surplus returnable to the Group at the end of the life of the scheme. Given the initiation of the wind-up process and the

intention to distribute the surplus assets to the Group once the buyout process is complete and the scheme liabilities are fully extinguished, the scheme assets

not represented by the value of the insurance contracts have been recognised at fair value. Under current tax legislation, a charge of 25% (2024: 25%) would

arise on the gross amount of any authorised surplus payment and the potential impact of this has been accounted for as part of the Group's deferred tax

liability. The surplus noted above is stated after a restriction for the estimated value of run-off and wind-up costs due to be incurred, which has been estimated

to be around£5 million.

In June 2023, the High Court handed down a decision in the case of *Virgin Media Limited v NTL Pension Trustees II Limited and Ors.* This decision has

potential but uncertain implications in the UK for the validity of certain amendments to contracted-out arrangements between 1997 and 2016 where the

requisite actuarial confirmation was not obtained at the time amendments were made. An amendment to a contracted-out scheme without appropriate

actuarial confirmation could be void. On 5 June 2025, the UK Government announced that they intended to introduce legislation to give affected pension

schemes the ability to retrospectively obtain written actuarial confirmation that historical benefit changes met the necessary standards.

On 2 September 2025, the UK Government published draft amendments to the Pensions Scheme Bill. The draft legislation will need to be agreed by both

Houses of Parliament before it passes into law. The timeframe for this legislation is unclear at present. In response to this, the UK Trustee has undertaken

limited investigation into this matter pending further developments and opinions from the Courts and the UK Government. As at 31 December 2025 and

31 December 2024, management have not identified any benefit uncertainties for which the potential impact would need to be considered and will continue

to monitor developments during 2026 and beyond. Under the existing insurance policies, any potential exposure arising from this issue would be uninsured

and wholly borne by the Group.

***Other territories***

Payments made to pensioners by the operating companies in Germany, net of income on scheme assets, are deemed to be company contributions to the

Contractual Trust Arrangements and are anticipated to be around £5 million in 2026 and £38 million per annum for the four years after that. Contributions to

pension schemes in Canada, Netherlands and Switzerland in total are anticipated to be around £5 million in 2026 and then also around £2 million per annum

for the four years after that.

British American Tobacco p.l.c. Form 20-F 2025<br>

For schemes in Germany reporting surpluses of £173 million (2024: £103 million), these surpluses have been recognised as an unconditional right to a refund

assuming the gradual settlement of the pension liabilities over the life of the scheme, with any future surplus returnable to the Group at the end of the life of the

scheme. For schemes in surplus in Canada of £30 million (2024: £34 million), the economic benefit has been calculated as a combination of the expected level

of administration expenses which may be charged to the plan assets in accordance withthe plan rules, which economically represents a potential surplus refund,

and the value of the employer reserve account as defined inlegislation, which represents a potential reduction in contributions on an ongoing basis or a surplus

refund at the end of the life of the scheme.

On 8 May 2025, the main pension scheme in the Netherlands (Stichting Pensioenfonds British American Tobacco) carried out a partial buy-in transaction as

part of the Group's derisking strategy with Aegon Levensverzekering N.V. for an insurance contract which covers the nominal pension entitlements at 30

April 2025 and future price inflation. In addition, future accruals of benefits will continue for the 11 active members up to the end of December 2027. The

deal was fully financed by existing assets of €586 million (£498 million) of the pension fund, realising a loss on transfer of assets of approximately

€67 million (£57 million) recognised as part of the actuarial loss on the revaluation of scheme assets and liabilities in Other Comprehensive Income.

In addition, on 1 October 2024, the Group concluded a transaction to transfer all of the remaining assets and liabilities of the scheme associated with the

Group's Groningen factory, which closed in 2022, allowing the Group to fully settle these obligations by transfer to an insurance company, Nationale-

Nederlanden, in a buy-out arrangement. Approximately €235 million (£199 million) of plan assets and liabilities were removed from the balance sheet.

On 14 November 2023, the Group through its Canadian subsidiaries entered into a buy-in agreement with two insurers to acquire insurance policies that

operate as assets of its second largest Canadian scheme, the Imperial Tobacco Corporate Pension Plan (Corporate Plan), by transferring plan assets of

CAD$194 million (£114 million). The transaction was met entirely from the pension plan assets with no further funding required from the Group. The buy-in

covered all the Corporate Plan's liabilities in relation to pensioners and deferred members as well as the pensions accrued up to 31 December 2022 for active

members. The Group consequently benefits from the buy-in as it reduces the Corporate Plan's reliance on the Group for future cash funding requirements.

Previously, on 2 September 2021, the Group entered into a buy-in agreement in respect of its largest Canadian scheme, the Imasco Pension Fund Society

Plan (Society Plan), by transferring plan assets of CAD$766 million (£451 million). The buy-in covered all the Society Plan's liabilities in relation to

pensioners and deferred members as well as the pensions accrued up to 31 December 2020 for active members.

***Unfunded arrangements***

The majority of benefit payments are from trustee administered funds, however, there are also a number of unfunded schemes where the sponsoring company

meets the benefit payment obligation as it falls due, including UK-based Defined Benefit and Defined Contribution Unapproved Unfunded Retirement

Benefit Schemes (DB UURBS and DC UURBS, respectively). The DC UURBS credits accrued in the year are increased in line with the Company's

Weighted Average Cost of Debt and the scheme is therefore treated as a defined benefit scheme under IAS 19. For unfunded pension schemes in the U.S. and

UK, 54% of the liabilities reported at year-end are expected to be settled by the Group within 10 years, 29% between 10 and 20 years, 12% between 20 and

30 years, and 5% thereafter. For unfunded healthcare schemes in the U.S. and Canada, 71% of the liabilities reported at year-end are expected to be settled by

the Group within 10 years, 23% between 10 and 20 years, 5% between 20 and 30 years, and 1% thereafter.

The amounts recognised in the balance sheet are determined as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Pension schemes | Pension schemes | Healthcare schemes | Healthcare schemes | Total | Total |
| | **2025**<br>**£m**<br>| 2024<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>|
| Present value of funded scheme liabilities | **(5266)** | (5560) | **(138)** | (145) | **(5404)** | (5705) |
| Fair value of funded scheme assets | **6175** | 6472 | **127** | 140 | **6302** | 6612 |
|  | **909** | 912 | **(11)** | (5) | **898** | 907 |
| Unrecognised funded scheme surpluses | **(124)** | (56) | **—** |  | **(124)** | (56) |
|  | **785** | 856 | **(11)** | (5) | **774** | 851 |
| Present value of unfunded scheme liabilities | **(348)** | (358) | **(347)** | (376) | **(695)** | (734) |
|  | **437** | 498 | **(358)** | (381) | **79** | 117 |
| The above net asset/(liability) is recognised in the balance sheet as follows: | The above net asset/(liability) is recognised in the balance sheet as follows: | The above net asset/(liability) is recognised in the balance sheet as follows: | The above net asset/(liability) is recognised in the balance sheet as follows: |  |  |  |
| – retirement benefit scheme liabilities | **(436)** | (434) | **(365)** | (386) | **(801)** | (820) |
| – retirement benefit scheme assets | **873** | 932 | **7** | 5 | **880** | 937 |
|  | **437** | 498 | **(358)** | (381) | **79** | 117 |

---

The net assets of funded pension schemes by territory are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Liabilities | Liabilities | Assets | Assets | Total | Total |
| | **2025**<br>**£m**<br>| 2024<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>|
| – U.S. | **(1255)** | (1380) | **1736** | 1843 | **481** | 463 |
| – UK | **(1871)** | (1942) | **2016** | 2109 | **145** | 167 |
| – Germany | **(657)** | (695) | **830** | 798 | **173** | 103 |
| – Canada | **(462)** | (499) | **492** | 534 | **30** | 35 |
| – Netherlands | **(444)** | (465) | **450** | 542 | **6** | 77 |
| – Switzerland | **(232)** | (243) | **268** | 267 | **36** | 24 |
| – Rest of Group | **(345)** | (336) | **383** | 379 | **38** | 43 |
| Funded schemes | **(5266)** | (5560) | **6175** | 6472 | **909** | 912 |

---

Of the Group's unfunded pension schemes, 49% (2024: 47%) relate to arrangements in the UK and 37% (2024: 38%) relate to arrangements in the U.S.,

while 86% (2024: 87%) of the Group's unfunded healthcare arrangements relate to arrangements in the U.S.

British American Tobacco p.l.c. Form 20-F 2025<br>

The amounts recognised in the income statement are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Pension schemes | Pension schemes | Healthcare schemes | Healthcare schemes | Total | Total |
| | **2025**<br>**£m**<br>| 2024<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>|
| Defined benefit schemes |  |  |  |  |  |  |
| Service cost |  |  |  |  |  |  |
| – current service cost | **26** | 37 | **1** | 1 | **27** | 38 |
| – past service cost/(credit), curtailments and <br>settlements<br>| **32** | (18) | **—** |  | **32** | (18) |
| Net interest on the net defined benefit liability |  |  |  |  |  |  |
| – interest on scheme liabilities | **283** | 288 | **26** | 28 | **309** | 316 |
| – interest on scheme assets | **(307)** | (312) | **(8)** | (8) | **(315)** | (320) |
| – interest on unrecognised funded scheme <br>surpluses<br>| **3** | 3 | **—** |  | **3** | 3 |
|  | **37** | (2) | **19** | 21 | **56** | 19 |
| **Defined contribution schemes** | **110** | 96 | **—** |  | **110** | 96 |
| **Total amount recognised in the income** <br>**statement (note 3)**<br>| **147** | 94 | **19** | 21 | **166** | 115 |

---

The above charges are recognised within employee benefit costs in note 3 and include a charge of £28 million in 2025 in respect of settlement costs which

has been classified as an adjusting item. Included in current service cost in 2025 is £7 million (2024: £11 million) of administration costs. Current service cost

is stated after netting employee contributions, where applicable.

The movements in scheme liabilities are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Pension schemes | Pension schemes | Healthcare schemes | Healthcare schemes | Total | Total |
| | **2025**<br>**£m**<br>| 2024<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>|
| **Present value at 1 January** | **5918** | 6647 | **521** | 555 | **6439** | 7202 |
| Differences on exchange | **(36)** | (127) | **(32)** | 5 | **(68)** | (122) |
| Current service cost | **26** | 37 | **1** | 1 | **27** | 38 |
| Past service (credit)/cost and settlements | **(29)** | (221) | **—** |  | **(29)** | (221) |
| Interest on scheme liabilities | **283** | 288 | **26** | 28 | **309** | 316 |
| Contributions by scheme members | **2** | 2 | **—** |  | **2** | 2 |
| Benefits paid | **(430)** | (470) | **(52)** | (54) | **(482)** | (524) |
| Actuarial losses/(gains) |  |  |  |  |  |  |
| – arising from changes in demographic <br>assumptions<br>| **16** | (13) | **—** |  | **16** | (13) |
| – arising from changes in financial assumptions | **(131)** | (239) | **12** | (6) | **(119)** | (245) |
| Experience (gains)/losses | **(5)** | 14 | **9** | (8) | **4** | 6 |
| **Present value at 31 December** | **5614** | 5918 | **485** | 521 | **6099** | 6439 |

---

Changes in financial assumptions principally relate to discount rate movements and changes in inflation in both years. Experience (gains)/losses relates to

variations from previous assumptions for inflationary increases for pensions-in-payment and deferred pensions as well as adjustments for membership data.

Past service (credit)/cost and settlements in the table above in 2025 includes the impact of the settlement of a legacy scheme in the U.S. of £35 million, while

for 2024 it includes amounts relating to the cessation of accruals for salaried employees in the U.S. and the buy-out of the Groningen liabilities in the

Netherlands.

Scheme liabilities by scheme membership:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Pension schemes | Pension schemes | Healthcare schemes | Healthcare schemes | Total | Total |
| | **2025**<br>**£m**<br>| 2024<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>|
| Active members | **545** | 582 | **22** | 22 | **567** | 604 |
| Deferred members | **632** | 756 | **1** | 1 | **633** | 757 |
| Retired members | **4437** | 4580 | **462** | 498 | **4899** | 5078 |
| **Present value at 31 December** | **5614** | 5918 | **485** | 521 | **6099** | 6439 |

---

Over 95% of scheme liabilities in both years relate to guaranteed benefits.

British American Tobacco p.l.c. Form 20-F 2025<br>

The movements in funded scheme assets are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Pension schemes | Pension schemes | Healthcare schemes | Healthcare schemes | Total | Total |
| | **2025**<br>**£m**<br>| 2024<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>|
| **Fair value of scheme assets** <br>**at 1 January**<br>| **6472** | 7172 | **140** | 145 | **6612** | 7317 |
| Differences on exchange | **(50)** | (128) | **(9)** | 2 | **(59)** | (126) |
| Settlements | **(61)** | (203) | **—** |  | **(61)** | (203) |
| Interest on scheme assets | **307** | 312 | **8** | 8 | **315** | 320 |
| Company contributions | **20** | 30 | **—** |  | **20** | 30 |
| Contributions by scheme members | **2** | 2 | **—** |  | **2** | 2 |
| Benefits paid | **(403)** | (442) | **(15)** | (15) | **(418)** | (457) |
| Actuarial (losses)/gains | **(112)** | (271) | **3** |  | **(109)** | (271) |
| **Fair value of scheme assets** <br>**at 31 December**<br>| **6175** | 6472 | **127** | 140 | **6302** | 6612 |

---

The actuarial losses and gains in both years principally relate to movements in the fair values of scheme assets including revaluations oninitial recognition

and subsequent remeasurement of insurance assets acquired in the buy-in transactions referred to above, including any adjustments to premiums paid for

subsequent verification of membership data in relation to these policies. Actual returns are stated net of applicable taxes and fund management fees.

Settlements in the table above in 2025 include the impact of the settlement of a legacy scheme in the U.S. of £34 million and the payment of a premium on a

buy-out transaction in the UK of £28 million which will conclude in 2026, and, in 2024, the value of assets derecognised relating to the buy-out of the

Groningen net liabilities in the Netherlands.

Scheme assets have been diversified into equities, bonds and other assets and are typically invested via fund investment managers into both pooled and

segregated mandates of listed and unlisted equities and bonds.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Pension schemes | Pension schemes | Healthcare schemes | Healthcare schemes | Total | Total |
| | **2025**<br>**£m**<br>| 2024<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>|
| Equities ‒ listed | **340** | 336 | **6** | 5 | **346** | 341 |
| Equities ‒ unlisted | **641** | 688 | **—** |  | **641** | 688 |
| Bonds ‒ listed | **877** | 1180 | **23** | 25 | **900** | 1205 |
| Bonds ‒ unlisted | **794** | 777 | **79** | 98 | **873** | 875 |
| Buy-in insurance policies | **2681** | 2345 | **—** |  | **2681** | 2345 |
| Other assets ‒ listed | **500** | 509 | **9** | 2 | **509** | 511 |
| Other assets ‒ unlisted | **342** | 637 | **10** | 10 | **352** | 647 |
| **Fair value of scheme assets** <br>**at 31 December**<br>| **6175** | 6472 | **127** | 140 | **6302** | 6612 |

---

In the above analysis, investments via equity-based investment funds are shown under listed equities, and investments via bond-based investment funds are

shown under listed bonds. Other assets include insurance contracts, cash and other deposits, derivatives and other hedges, recoverable taxes, infrastructure

investments and investment property. The fair values of listed scheme assets were derived from observable data including quoted market prices and other

market data, including market values of individual segregated investments and of pooled investment funds where quoted.

The fair values of other unlisted assets were determined using an income approach that utilised cash flow models utilising observable inputs and comparing

these valuations to benchmark valuations of similar assets. In addition, the fair value of a proportion of the unlisted bonds is estimated by reference to daily

broker auctions.

In the U.S. pension plan, assets are invested using active investment strategies and multiple investment management firms. Managers within each asset class

cover a range of investment styles and approaches. Allowable investment types include public equity, fixed income, real assets, private equity and hedge

funds. The range of allowable investment types utilised for pension assets provides enhanced returns and more widely diversifies the plan.

The fair values of insurance policies related to buy-in transactions in the UK, Canada and the Netherlands were estimated as the present value of the

underlying obligations covered by the insurance policy and consequently the valuation of these assets at each balance sheet date is subject to the same

measurement uncertainty as for the related scheme liabilities.

The insurance assets in relation to the UKPF of £1,845 million included in the above table will be derecognised upon extinguishment of the UKPF liabilities

in the first quarter of 2026. Until the buy-out of the UKPF scheme takes effect in 2026, the insurance contract is valued as a buy-in policy. The residual assets

of UKPF of £148 million (2024: £169 million) predominantly consist of cash and a proportion of illiquid investments, such as private equity and infrastructure

investments. These assets are expected to be distributed to the Group once the buy-out transaction referred to above is completed and the wind-up process of

the UKPF is implemented.

British American Tobacco p.l.c. Form 20-F 2025<br>

The recognition of retirement benefit surpluses on the balance sheet is restricted where the economic benefit, in the form of a potential refund or reduction in

future contributions, has a present value which is less than the net assets of the scheme. The movements in the unrecognised scheme surpluses, recognised in

other comprehensive income, are as follows:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Pension schemes | Pension schemes | Pension schemes | Healthcare schemes | Healthcare schemes | Healthcare schemes | Total | Total | Total |
| | **2025**<br>**£m**<br>| 2024<br>£m<br>| 2023<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>| 2023<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>| 2023<br>£m<br>|
| **Unrecognised funded** <br>**scheme surpluses at** <br>**1 January**<br>| **(56)** | (40) | (60) | **—** |  |  | **(56)** | (40) | (60) |
| Differences <br>on exchange<br>| **2** | 1 |  | **—** |  |  | **2** | 1 |  |
| Interest on unrecognised <br>funded scheme surpluses<br>| **(3)** | (3) | (4) | **—** |  |  | **(3)** | (3) | (4) |
| Movement in year (note <br>22)<br>| **(67)** | (14) | 24 | **—** |  |  | **(67)** | (14) | 24 |
| **Unrecognised funded** <br>**scheme surpluses at** <br>**31 December**<br>| **(124)** | (56) | (40) | **—** |  |  | **(124)** | (56) | (40) |

---

The principal actuarial assumptions (weighted to reflect individual scheme differences) used in the following territories are shown below. In both years,

discount rates are determined by reference to normal yields on high quality corporate bonds at the balance sheet date.

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | <br>**U.S.** | <br>**UK** | <br>**Germany** | <br>**Canada** | <br>**Netherlands** | **2025**<br>**Switzerland** | <br>U.S. | <br>UK | <br>Germany | <br>Canada | <br>Netherlands | 2024<br>Switzerland |
| Rate of increase in <br>salaries (%)<br>| **3.4** | **Nil** | **2.8** | **2.5** | **2.0** | **2.0** | 3.3 | Nil | 2.8 | 2.5 | 2.0 | 2.0 |
| Rate of increase in <br>pensions in payment (%)<br>| **2.5** | **3.0** | **2.0** | **Nil** | **2.0** | **—** | 2.4 | 3.2 | 2.2 | Nil | 2.1 | Nil |
| Rate of increase in <br>deferred pensions (%)<br>| **0.1** | **2.4** | **2.0** | **Nil** | **2.0** | **—** | 0.1 | 2.8 | 2.2 | Nil | 2.1 |  |
| Discount rate (%) | **5.3** | **5.5** | **4.1** | **4.7** | **4.1** | **1.2** | 5.6 | 5.5 | 3.5 | 4.6 | 3.5 | 0.9 |
| General inflation (%) | **2.5** | **3.0** | **2.0** | **2.0** | **2.0** | **1.1** | 2.5 | 3.2 | 2.2 | 2.0 | 2.0 | 1.1 |

---

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | <br>**U.S.** | <br>**UK** | <br>**Germany** | <br>**Canada** | <br>**Netherlands** | **2025**<br>**Switzerland** | <br>U.S. | <br>UK | <br>Germany | <br>Canada | <br>Netherlands | 2024<br>Switzerland |
| Weighted average <br>duration of liabilities <br>(years)<br>| **9.6** | **11.2** | **10.2** | **9.0** | **12.5** | **10.5** | 9.6 | 11.4 | 10.6 | 9.0 | 13.6 | 10.9 |

---

For healthcare inflation in the U.S., the assumption is 7.0% for 2025 (2024: 7.0%) and in Canada, the assumption is 5.0% (2024: 5.0%).

**Mortality assumptions are subject to regular review. The principal schemes used the following tables:**

---

| | |
|:---|:---|
| U.S. | Pri-2012 mortality table without collar or amount adjustments projected with MP-2021 generational projection. For retirees in former PEP <br>portion of RAPP, RP-2006 mortality table with white collar adjustments projected with MP-2021 generational projection (both years) |
| UK | S3PA (YOB) with the CMI (2024) improvement model (smoothing parameter of 7) and 15% weighting to the 2022 and 2023 data with a <br>1.25% long-term improvement rate (2024: S3NA (YOB) with the CMI (2023) improvement model (smoothing parameter of 7) and 15% <br>weighting to the 2022 and 2023 data with a 1.25% long-term improvement rate applied from 2020 onwards) |
| Germany | RT Heubeck 2018 G (both years) |
| Canada | CPM-2014 Private Table (both years) |
| Netherlands | AG Prognosetafel 2024 (both years) |
| Switzerland | LPP/BVG 2020 base table with CMI projection factors for mortality improvements with a 1.5% long-term improvement rate (both years) |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

Based on the above, the weighted average life expectancy, in years, for mortality tables used to determine benefit obligations is as follows:

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **U.S.** | **U.S.** | **UK** | **UK** | **Germany** | **Germany** | **Canada** | **Canada** | **Netherlands** | **Netherlands** | **Switzerland** | **Switzerland** |
| | **Male** | **Female** | **Male** | **Female** | **Male** | **Female** | **Male** | **Female** | **Male** | **Female** | **Male** | **Female** |
| **31 December 2025** |  |  |  |  |  |  |  |  |  |  |  |  |
| Member age 65 <br>(current life expectancy)<br>| **22.3** | **23.8** | **22.9** | **24.2** | **20.9** | **24.3** | **22.2** | **24.5** | **21.1** | **24.8** | **22.2** | **24.0** |
| Member age 45 (life expectancy at <br>age 65)<br>| **22.4** | **24.3** | **24.4** | **26.2** | **23.6** | **26.5** | **23.2** | **25.4** | **23.3** | **26.6** | **24.2** | **25.9** |
| **31 December 2024** |  |  |  |  |  |  |  |  |  |  |  |  |
| Member age 65 <br>(current life expectancy)<br>| 22.2 | 23.7 | 22.6 | 24.1 | 20.8 | 24.2 | 22.1 | 24.5 | 21.0 | 24.7 | 22.1 | 23.9 |
| Member age 45 (life expectancy at <br>age 65)<br>| 22.3 | 24.2 | 24.1 | 26.1 | 22.5 | 26.4 | 23.1 | 25.4 | 23.2 | 26.5 | 24.1 | 25.8 |

---

For the remaining territories, typical assumptions are that real salary increases will be from 0% to 12.0% (2024: 0% to 9.8%) per annum and discount rates

will be from 0% to 9.5% (2024: 0% to 8.7%) above inflation. Pension increases, where allowed for, are generally assumed to be in line with inflation.

Assumptions of life expectancy are in line with best practice in each territory. For countries where there is not a deep market in such corporate bonds, the

yield on government bonds is used.

The valuation of retirement benefit schemes involves judgements about uncertain future events. Sensitivities in respect of the key assumptions used to

measure the principal pension schemes as at 31 December 2025 are set out below. These sensitivities show the hypothetical impact of a change in each of the

listed assumptions in isolation, with the exception of the sensitivity to inflation which incorporates the impact of certain correlating assumptions such as

salary increases and pension increases. While each of these sensitivities holds all other assumptions constant, in practice such assumptions rarely change in

isolation, while asset values also change, and the impacts may offset to some extent.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year**<br>**increase**<br>**£m**<br>| **1 year**<br>**decrease**<br>**£m**<br>| **percentage** <br>**increase**<br>**£m**<br>| **percentage** <br>**decrease**<br>**£m**<br>|
| Average life expectancy – increase/(decrease) of scheme liabilities | **109** | **(110)** |  |  |
| Rate of inflation (+/- 25bps) – increase/(decrease) of scheme liabilities |  |  | **75** | **(72)** |
| Discount rate (+/- 50bps) – (decrease)/increase of scheme liabilities |  |  | **(252)** | **274** |

---

A one percent increase in healthcare inflation would increase healthcare scheme liabilities by £17 million, and a one percent decrease would decrease

liabilities by £14 million. The income statement effect of this change in assumption is not material.

British American Tobacco p.l.c. Form 20-F 2025<br>

**16 Deferred tax**

Net deferred tax (liabilities)/assets comprise:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Stock**<br>**relief**<br>**£m**<br>| **Excess of**<br>**capital** <br>**allowances over** <br>**depreciation**<br>**£m**<br>| **Tax**<br>**losses**<br>**£m**<br>| **Undistributed** <br>**earnings of** <br>**associates and** <br>**subsidiaries**<br>**£m**<br>| **Retirement**<br>**benefits**<br>**£m**<br>| **Trademarks**<br>**£m**<br>| **Other**<br>**temporary**<br>**differences**<br>**£m**<br>| **Total**<br>**£m**<br>|
| **1 January 2025** | **7** | **26** | **378** | **(197)** | **22** | **(11928)** | **2586** | **(9106)** |
| Differences on exchange | **10** | **7** | **—** | **15** | **(1)** | **809** | **(101)** | **739** |
| Credited/(charged) to the <br>income statement<br>| **(13)** | **(4)** | **311** | **32** | **(22)** | **354** | **(796)** | **(138)** |
| Credited relating <br>to changes in tax rates<br>| **2** | **2** | **—** | **—** | **—** | **206** | **(8)** | **202** |
| Credited/(charged) to other <br>comprehensive income<br>| **—** | **—** | **—** | **—** | **5** | **—** | **(13)** | **(8)** |
| **31 December 2025** | **6** | **31** | **689** | **(150)** | **4** | **(10559)** | **1668** | **(8311)** |
| **1 January 2024** | 32 | (21) | 373 | (221) | 39 | (12486) | 1003 | (11281) |
| Differences on exchange | (5) | 3 | (1) | 3 | (1) | (227) | (4) | (232) |
| (Charged)/credited to the <br>income statement<br>| (24) | 42 | 6 | 21 | (21) | 517 | 1635 | 2176 |
| Credited/(charged) relating <br>to changes in tax rates<br>| 4 | 2 |  |  |  | 268 | (25) | 249 |
| Credited/(charged) to other <br>comprehensive income<br>|  |  |  |  | 5 |  | (23) | (18) |
| Net reclassifications as <br>held-for-sale<br>|  |  |  |  |  |  |  |  |
| **31 December 2024** | **7** | **26** | **378** | **(197)** | **22** | **(11928)** | **2586** | **(9106)** |

---

The net deferred tax liabilities are reflected in the Group balance sheet as follows: deferred tax asset of £2,032 million and deferred tax liability of

£10,343 million (2024: deferred tax asset of £2,573 million and deferred tax liability of £11,679 million), after offsetting assets and liabilities where there is a

legally enforceable right to offset current tax assets and liabilities and where the deferred income taxes relate to the same fiscal authority.

The upfront cash payment in relation to the Approved Plans in Canada described further in notes 24 and 31gave rise to a tax loss in Canada. This tax loss is

partially carried back to offset taxable profits of prior years and the remainder of the tax loss is carried forward to be utilised against future taxable income.

The movement in other temporary difference during 2025 primarily relates to the utilisation of the deferred tax asset established in 2024 in relation to the

Approved Plans and the movement in tax losses during 2025 includes recognition of deferred tax asset on losses available to be carried forward.

The Group net deferred tax liability of £8,311 million includes a net deferred tax asset of £727 million (2024: £551 million) in relation to UK Group

companies, which relates mainly to tax losses (£501 million; 2024: £394 million) and the excess of capital allowances over depreciation (£221 million; 2024:

£215 million). The tax losses are expected to be utilised in future periods as a result of increased profitability in UK Group companies which is expected to

follow from improved efficiency in the delivery of business activities. Based on current forecasts UK group companies are expected to generate taxable

profits from 2028, from which time it is expected that the tax losses will start to reduce. The losses are forecast to be fully utilised within 7 years thereafter,

accounting for a 10% increase or decrease in the total profits of UK group companies.

The Group has applied the mandatory exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two

income taxes in accordance with IAS 12 *Income Taxes*.

At the balance sheet date, the Group has not recognised a deferred tax asset in respect of unused tax losses of £366 million (2024: £365 million) which have no

expiry date and unused tax losses of £156 million (2024: £201 million) which will expire within the next 20 years.

In 2025 and 2024 the Group has not recognised any deferred tax asset in respect of deductible temporary differences which have no expiry date and has not

recognised any deferred tax asset (2024: nil) in respect of deductible temporary differences which will expire within the next 10 years.

At the balance sheet date, the Group has unused tax credits of £80 million (2024: £80 million) which have no expiry date. No amount ofdeferred tax has

been recognised in respect of these unused tax credits.

At the balance sheet date, the aggregate amount of undistributed earnings of subsidiaries which would be subject to dividend withholding tax and for which

no withholding tax liability has been recognised was £0.8 billion (2024: £1.2 billion).

British American Tobacco p.l.c. Form 20-F 2025<br>

**17 Trade and other receivables**

---

| | | |
|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>|
| Trade receivables | **3082** | 2855 |
| Loans and other receivables | **639** | 689 |
| Prepayments and accrued income | **369** | 342 |
|  | **4090** | 3886 |
| Current | **3802** | 3604 |
| Non-current | **288** | 282 |
|  | **4090** | 3886 |

---

***Trade receivables***

The majority of receivables are held in order to collect contractual cash flows, in accordance with the Group's business model for managing financial assets,

and hence are measured at amortised cost. In certain countries, however, the Group has entered into factoring arrangements and periodically sells certain

trade receivables to banks and other financial institutions, without recourse, for cash. These trade receivables have been derecognised from the balance sheet

to reflect the transfer by the Group of substantially all of the risks and rewards of the receivables, including credit risk. Consequently, the cash inflows have

been recognised within operating cash flows. Typically in these arrangements, the Group also acts as a collection agent for the bank. At 31 December 2025,

the value of trade receivables derecognised through the factoring arrangements where the Group acts as a collection agent was £629 million

(2024: £535 million) and where the Group does not act as a collection agent was £14 million (2024: £7 million). Included in trade receivables above is

£76 million (2024: £213 million) of trade debtor balances which were available for factoring under these arrangements. In addition, the Group participates in

certain supply chain finance programmes utilised by its customers allowing the Group to receive payment for invoices earlier than the agreed due date at a

discounted value. At 31 December 2025, the value of trade receivables derecognised through these arrangements was £226 million (2024: £172 million).

A number of Group companies have entered into arrangements with certain customers. Under these agreements the Group enters into an agreement with a

financial institution and/or a customer. The agreement allows the customer to obtain finance from the financial institution in order to pay invoices due to the

Group. The customer repays the financial institution based on an agreed maturity date independently agreed between the customer and financial institution.

Under these agreements there is normally no recourse to the Group in the event of credit default by customers. However, the Group is subject to various

performance obligations under the arrangement including notifying the financial institution of credit default or of changes to, or termination of, the customer

supply agreement. The amount derecognised from trade receivables at 31 December 2025 in relation to these arrangements is £10 million(2024: £20 million).

The cash flows have been recognised within operating cash flows.

The Group also participates in agreements with customers where the Group can request early payment of invoices at a discount. The discount is recognised as a

deduction against revenue. At 31 December, £13 million was received in advance of the invoice due date (2024: £82 million).

***Loans and other receivables***

Included in loans and other receivables are £135 million of litigation related deposits (2024: £113 million). Management has determined that these payments

represent a resource controlled by the entity, as a result of past events and from which future economic benefits are expected to flow to the entity either by

being recoverable on conclusion of ongoing appeal processes or by reducing amounts potentially payable should the appeal process fail. These deposits are

held at the fair value of consideration transferred and are offset against provisions, if applicable, only once funds have transferred out from the deposit account.

The effect of discounting would be immaterial.

Loans and other receivables include £52 million (2024: £57 million) as a current receivable in relation to outstanding proceeds from the sale of the Group's

Iranian subsidiary in 2021. Given the ongoing political situation, heightened sanctions and other uncertainties coupled with the passage of time the receivable

has been outstanding, during 2023, the Group recognised an expected credit loss of £28 million.

Also included in loans and other receivables are deposits that do not meet the definition of cash and cash equivalents as well as loans provided to farmers.

The cash flows arising from these transactions are included in investing activities and have been reconciled, innote18, to the cash flow statement.

***Prepayments and accrued income***

Prepayments and accrued income include £29 million (2024: £16 million) of accrued income primarily in relation to rebates and royalties.

***Other disclosures***

Amounts receivable from related parties including associated undertakings are shown in note 30.

Trade and other receivables have been reported in the balance sheet net of allowances as follows:

---

| | | |
|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>|
| Trade receivables – gross | **3128** | 2900 |
| Trade receivables – allowance | **(46)** | (45) |
| Loans and other receivables – gross | **667** | 717 |
| Loans and other receivables – allowance | **(28)** | (28) |
| Prepayments and accrued income | **369** | 342 |
| **Net trade and other receivables per balance sheet** | **4090** | 3886 |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

The movements in the allowance account are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | <br>**Trade receivables**<br>**£m**<br>| <br>**Loans** <br>**and other** <br>**receivables**<br>**£m**<br>| **2025**<br>**Total**<br>**£m**<br>| <br>Trade receivables<br>£m<br>| <br>Loans <br>and other <br>receivables<br>£m<br>| 2024<br>Total<br>£m<br>|
| 1 January | **45** | **28** | **73** | 70 | 28 | 98 |
| Differences on exchange | **—** | **—** | **—** | (3) |  | (3) |
| Provided in the year\* | **13** | **—** | **13** | 8 |  | 8 |
| Utilised | **(12)** | **—** | **(12)** | (30) |  | (30) |
| 31 December | **46** | **28** | **74** | 45 | 28 | 73 |

---

**Note: \*** Amounts provided above are shown net of reversals of unused allowances, which include reversals of £6 million(2024: £18 million).

As permitted by IFRS 9, the loss allowance on trade receivables arising from the recognition of revenue under IFRS 15 is initially measured at an amount

equal to lifetime expected losses. Allowances in respect of loans and other receivables are initially recognised at an amount equal to 12-month expected credit

losses. Allowances are measured at an amount equal to the lifetime expected credit losses where the credit risk on the receivables increases significantly after

initial recognition.

The Group holds bank guarantees, other guarantees and credit insurance in respect of some of the past due debtor balances.

Trade and other receivables are predominantly denominated in the functional currencies of subsidiary undertakings apart from the following: US dollar: 2.6%

(2024: 3.3%), Euro: 4.3% (2024: 5.5%) and other currencies: 1.0% (2024: 1.8%).

There is no material difference between the above amounts for trade and other receivables and their fair value due to the short-term duration of the majority

of trade and other receivables as determined using discounted cash flow analysis. There is no concentration of credit risk with respect to trade receivables as

the Group has a large number of internationally dispersed customers.

**18 Investments held at fair value**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | <br>**Fair value** <br>**through P&L**<br>**£m**<br>| <br>**Fair value** <br>**through OCI**<br>**£m**<br>| **2025**<br>**Total**<br>**£m**<br>| <br>Fair value <br>through P&L<br>£m<br>| <br>Fair value <br>through OCI<br>£m<br>| 2024<br>Total<br>£m<br>|
| **1 January** | **594** | **65** | **659** | 652 | 67 | 719 |
| Difference on exchange | **(20)** | **(1)** | **(21)** | (40) |  | (40) |
| Additions  | **24** | **11** | **35** | 210 | 4 | 214 |
| ITC Hotels – demerger from ITC Ltd | **—** | **533** | **533** |  |  |  |
| Disposals  | **(517)** | **(318)** | **(835)** | (288) |  | (288) |
| Reclassifications | **—** | **(11)** | **(11)** |  |  |  |
| Other fair value movements  | **(9)** | **(2)** | **(11)** | 60 | (6) | 54 |
| **31 December** | **72** | **277** | **349** | 594 | 65 | 659 |
| Current | **16** | **—** | **16** | 513 |  | 513 |
| Non-current | **56** | **277** | **333** | 81 | 65 | 146 |
|  | **72** | **277** | **349** | 594 | 65 | 659 |

---

The Group's investments principally consist of non-derivative financial assets that cannot be classified as loans and other receivables or cash and cash

equivalents, as well as investments made by the Group's corporate venture capital unit, Btomorrow Ventures, and other Group companies.

In addition, as a result of ITC's demerger of its hotel business in January 2025, the Group received a 15% stake in the newly incorporated ITC Hotels in the

form of a dividend in specie of £533 million. This has been recognised as a non-cash addition in investments at fair value through other comprehensive

income (OCI). In December 2025, around 59% of the Group's investment in ITC Hotels was sold to investors by way of an accelerated bookbuild process.

Net proceeds from the sale amounted to £318 million. Following completion of the sale, the Group retains a c.6.3% holding in ITC Hotels.

Btomorrow Ventures (BTV) has completed29 investments since its launch in 2020, and continues to invest in innovative, consumer-led brands, new

sciences and technologies, and sustainability to support the Group's transformational strategy for A Better Tomorrow™. Throughout 2025, BTV has

continued to support its portfolio of companies with a number of follow-on investment rounds, and new investments including a UK based venture builder

focussed on addressing climate change, Carbon 13, a Cayman Islands fund that targets carbon mitigation, CM Venture Capital Carbon Mitigation Evergreen

Fund, a U.S.-based natural beverages company, Caliwater and a Swiss chemical producer, Bloom Biorenewables SA. During 2024, BTV supported its

portfolio of companies with a number of follow-on investment rounds, and new investments including a U.S.-based adaptogens and nootropics beverage

company, Hop Wtr Inc., and a German AI-powered sustainable packaging company, one.five.

Investments held at fair value through OCI relate to equity investments in ITC Hotels and various strategic businesses.

Investments held at fair value through profit and loss principally consist of government securities, indexed deposits, treasury bills or other treasury products

with maturities of more than three months which, if held for less than 12 months, form part of the Group's definition of net debt. Investments held at fair

value through profit and loss include other strategic investments which do not meet the definition of equity investments. Balances held at 31 December 2024

included £437 million in respect of investments held by subsidiaries in CCAA protection (note 32). These investments were liquidated and paid into the

Global Settlement Trust Account as part of the Upfront Cash Contribution in the second half of 2025.

As at 31 December 2025, investments held at fair value included restricted amounts of nil (2024: £60 million) subject to potential exchange control

restrictions.

During 2024, as part of the sale and leaseback transaction in Nigeria, referred to in note 5(b), the Group obtained a 40% interest in Rising Sun Partners LP,

a property management company as part of the consideration receivable. As a limited partner, the Group has no voting rights or influence over the entity and

has classified the interest as an investment at fair value through profit and loss. The fair value of the investment was £10 million and was derived as a share of

the market value of the property owned and managed by Rising Sun Partners LP. As the investment was a non-cash addition it was excluded from the cash

flow reconciliation below.

British American Tobacco p.l.c. Form 20-F 2025<br>

Investments held at fair value are predominantly denominated in the functional currencies of subsidiary undertakings with less than 16% in other currencies

(2024: less than 7% in other currencies). There is no material difference between the investments held at fair value and their gross contractual values.

The classification of these investments under the IFRS 13 *Fair Value Measurement* fair value hierarchy is given in note 26. Fair values for quoted

investments are based on observable market prices. If there is no active market for a financial asset, the fair value is established by using valuation

techniques, including discounted cash flow analyses and share of net assets. The fair value of the seven-year convertible debenture in Charlotte's Web has

been determined using a binomial option pricing model.

Included in the values in the table above are £138 million (2024: £212 million) of level 3 assets. Movements in these assets in 2025 included £35 million

(2024: £128 million) of additions, £71 million (2024: £114 million) of disposals and £38 million of net fair value loss (2024: £6 million net fair value gain).

Below is a reconciliation of the fair value investments cash flows to the cash flow statement – investing activities:

---

| | | |
|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>|
| Cash outflow from investments held at fair value | **35** | 204 |
| Cash outflow from loans and other receivables | **19** | 12 |
| **Cash outflows from investments per cash flow statement** | **54** | 216 |
| Cash inflow from investments held at fair value | **(835)** | (288) |
| Cash inflow from loans and other receivables | **(13)** | (11) |
| **Cash inflows from investments per cash flow statement** | **(848)** | (299) |

---

**19 Derivative financial instruments**

The fair values of derivatives are determined based on market data (primarily yield curves, implied volatilities and exchange rates) to calculate the present

value of all estimated flows associated with each derivative at the balance sheet date. In the absence of sufficient market data, fair values would be based on

the quoted market price of similar derivatives. The classification of these derivative assets andliabilities under the IFRS 13 fair value hierarchy is given in

note 26.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**Assets**<br>**£m**<br>| **2025**<br>**Liabilities**<br>**£m**<br>| <br>Assets<br>£m<br>| 2024<br>Liabilities<br>£m<br>|
| Fair value hedges |  |  |  |  |
| –interest rate swaps | **44** | **92** | 11 | 270 |
| – cross-currency swaps | **—** | **5** | 19 |  |
| Cash flow hedges |  |  |  |  |
| – cross-currency swaps | **105** | **—** | 81 | 16 |
| – forward foreign currency contracts | **61** | **43** | 71 | 33 |
| Net investment hedges |  |  |  |  |
| – forward foreign currency contracts | **65** | **18** | 35 | 67 |
| Held-for-trading<sup>\*</sup> |  |  |  |  |
| – forward foreign currency contracts | **22** | **57** | 79 | 31 |
| Embedded derivative relating to associates (note 14) | **—** | **—** |  | 7 |
| **Total** | **297** | **215** | 296 | 424 |
| Current | **162** | **91** | 186 | 156 |
| Non-current | **135** | **124** | 110 | 268 |
|  | **297** | **215** | 296 | 424 |
| Derivatives |  |  |  |  |
| – in respect of net debt<sup>\*\*</sup> | **158** | **146** | 184 | 297 |
| – other | **139** | **69** | 112 | 127 |
|  | **297** | **215** | 296 | 424 |

---

**Notes:**

\*Derivatives which do not meet the tests for hedge accounting under IFRS 9 or which are not designated as hedging instruments are referred to as 'held-for-trading'. These derivatives principally consist of forward

foreign currency contracts which have not been designated as hedges due to their value changes offsetting with other components of net finance costs relating to financial assets and financial liabilities. The Group

does not use derivatives for speculative purposes. All derivatives are undertaken for risk management purposes.

\*\*Derivatives in respect of net debt are in a net asset position of £12 million as at 31 December 2025 (2024: net liability position of £113 million). The Group's net debt is presented in note 23.

For cash flow hedges, the timing of expected cash flows is as follows: assets of £166 million (2024: £152 million) of which £58 million (2024: £65 million)

is expected within one year and nil (2024: nil) beyond five years and liabilities of £43 million(2024: £49 million) of which £42 million (2024: £48 million) is

expected within one year and nil (2024: nil) beyond five years.

The Group's cash flow hedges are principally in respect of sales or purchases of inventory and certain debt instruments. A certain number of forward foreign

currency contracts were used to manage the currency profile of external borrowings and are reflected in the currency table in note 23. Interest rate swaps have

been used to manage the interest rate profile of external borrowings and are reflected in the re-pricing table in note 23.

British American Tobacco p.l.c. Form 20-F 2025<br>

The table below sets out the maturities of the Group's derivative financial instruments (excluding the embedded derivative relating to associates) on an

undiscounted contractual basis, based onspot rates.

The maturity dates of gross-settled derivative financial instruments are as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | **2025** |  |  |  | 2024 |
|  | **Assets** | **Assets** | **Liabilities** | **Liabilities** | Assets | Assets | Liabilities | Liabilities |
| | **Inflow**<br>**£m**<br>| **Outflow**<br>**£m**<br>| **Inflow**<br>**£m**<br>| **Outflow**<br>**£m**<br>| Inflow<br>£m<br>| Outflow<br>£m<br>| Inflow<br>£m<br>| Outflow<br>£m<br>|
| Within one year |  |  |  |  |  |  |  |  |
| –forward foreign currency contracts | **7208** | **(7067)** | **9580** | **(9703)** | 9748 | (9556) | 6952 | (7075) |
| – interest rate swaps | **100** | **(101)** | **174** | **(246)** |  | (9) | 117 | (224) |
| – cross-currency swaps | **7** | **(12)** | **57** | **(54)** | 34 | (40) | 306 | (323) |
| Between one and two years |  |  |  |  |  |  |  |  |
| –forward foreign currency contracts | **771** | **(756)** | **96** | **(98)** | 377 | (365) | 199 | (202) |
| – interest rate swaps | **120** | **(106)** | **624** | **(617)** | 18 | (14) | 231 | (316) |
| – cross-currency swaps | **581** | **(467)** | **57** | **(52)** | 34 | (38) |  |  |
| Between two and three years |  |  |  |  |  |  |  |  |
| – interest rate swaps | **120** | **(112)** | **136** | **(139)** | 19 | (15) | 229 | (249) |
| – cross-currency swaps | **—** | **—** | **57** | **(54)** | 594 | (492) |  |  |
| Between three and four years |  |  |  |  |  |  |  |  |
| – interest rate swaps | **120** | **(117)** | **136** | **(145)** | 19 | (16) | 196 | (218) |
| – cross-currency swaps | **—** | **—** | **994** | **(1018)** | 27 | (25) |  |  |
| Between four and five years |  |  |  |  |  |  |  |  |
| – interest rate swaps | **101** | **(100)** | **136** | **(149)** | 19 | (17) | 196 | (218) |
| – cross-currency swaps | **—** | **—** | **—** | **—** | 473 | (454) |  |  |
| Beyond five years |  |  |  |  |  |  |  |  |
| – interest rate swaps | **291** | **(293)** | **279** | **(331)** | 279 |  | 1217 | (685) |
|  | **9419** | **(9131)** | **12326** | **(12606)** | 11641 | (11041) | 9643 | (9510) |

---

The Group's net-settled derivative financial instruments are all due within one year with assets inflow of £9 million (2024: £1 million inflow) and liabilities

outflow of £1 million (2024: £8 million outflow).

The items designated as hedging instruments are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**Nominal** <br>**amount of hedging** <br>**instrument**<br>**£m**<br>| **2025**<br>**Changes in** <br>**fair value used for** <br>**calculating hedge** <br>**ineffectiveness**<br>**£m**<br>| <br>Nominal <br>amount of hedging <br>instrument<br>£m<br>| 2024<br>Changes in <br>fair value used for <br>calculating hedge <br>ineffectiveness<br>£m<br>|
| **Interest rate risk exposure:**  |  |  |  |  |
| Fair value hedges |  |  |  |  |
| – interest rate swaps | **7108** | **144** | 6509 | (58) |
| – cross-currency swaps | **427** | **(26)** | 459 | (2) |
| Cash flow hedges |  |  |  |  |
| – cross-currency swaps | **563** | **(22)** | 833 | 18 |
| **Foreign currency risk exposure:**  |  |  |  |  |
| Cash flow hedges |  |  |  |  |
| – forward foreign currency contracts | **2542** | **21** | 3023 | 39 |
| Net investment hedges (derivative related) |  |  |  |  |
| – forward foreign currency contracts | **5961** | **48** | 4569 | (33) |
| Net investment hedges (non-derivative related) |  |  |  |  |
| – debt (carrying value) in borrowings designated as net investment <br>hedges of net assets<br>| **383** | **(20)** | 363 | 17 |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

**20 Inventories**

---

| | | |
|:---|:---|:---|
| | **2025**<br>**£m**<br>| **2024**<br>**£m**<br>|
| Raw materials and consumables | **2022** | 2056 |
| Finished goods and work in progress | **2254** | 2434 |
| Goods purchased for resale | **106** | 126 |
|  | **4382** | 4616 |

---

Write-offs taken to other operating expenses in the Group income statement were £217 million (2024: £134 million; 2023: £250 million). As mentioned in

note 33, in 2023, this includes a write-off of stock of leaf following an extreme weather event. Goods purchased for resale include Group brands produced

under third-party contract manufacturing arrangements.

**21 Cash and cash equivalents**

---

| | | |
|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>|
| Cash and bank balances | **1915** | 3428 |
| Cash equivalents | **1912** | 1869 |
|  | **3827** | 5297 |

---

The carrying value of cash and cash equivalents approximates their fair value.

Cash and cash equivalents are denominated in the functional currency of the subsidiary undertaking or other currencies as shown below:

---

| | | |
|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>|
| Functional currency | **3111** | 4392 |
| US dollar | **565** | 651 |
| Euro | **87** | 115 |
| Other currencies | **64** | 139 |
|  | **3827** | 5297 |

---

In the Group cash flow statement, net cash and cash equivalents are shown after deducting bank overdrafts and accrued interest where applicable, as follows:

---

| | | |
|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>|
| Cash and cash equivalents as above | **3827** | 5297 |
| Less overdrafts and accrued interest | **(40)** | (193) |
| **Net cash and cash equivalents** | **3787** | 5104 |

---

Cash and cash equivalents also include £24 million (2024: £49 million) of cash that is held as a hedging instrument.

Accrued interest of £3 million (2024: £55 million) was driven by lower cash and cash equivalent balances in certain markets.

**Restricted cash**

Cash and cash equivalents include restricted amounts of £268 million (2024:£2,072 million) in respect of ITCAN which was previously in CCAA protection

(note 32 and note 24). Accumulated cash and cash equivalents were paid into the Global Settlement Trust Account as part of the Upfront Cash Contribution

(each as defined in the Approved Plans, see note 24) in the second half of 2025. Due to ongoing restrictions associated with the Approved Plans in Canada,

cash and cash equivalents held by ITCAN continue to be considered restricted. As at 31 December 2025, further restricted cash and cash equivalents of

£67 million (2024: £339 million) were principally due to exchange control restrictions.

British American Tobacco p.l.c. Form 20-F 2025<br>

**22 Capital and reserves**

**(a) Share capital**

---

| | | |
|:---|:---|:---|
|  | Ordinary<br>shares of 25p each<br>Number of shares<br>| £m |
| Allotted and fully paid |  |  |
| **1 January 2025** | **2342825304** | **585** |
| Changes during the year |  |  |
| – share option schemes | **89960** | **—** |
| – shares bought back and cancelled | **(30460763)** | **(8)** |
| **31 December 2025** | **2312454501** | **577** |
| Allotted and fully paid |  |  |
| 1 January 2024 | 2456941909 | 614 |
| Changes during the year |  |  |
| – share option schemes | 275824 |  |
| – shares bought back and cancelled | (27392429) | (7) |
| – treasury shares cancelled | (87000000) | (22) |
| 31 December 2024 | 2342825304 | 585 |
| Allotted and fully paid |  |  |
| 1 January 2023 | 2456867420 | 614 |
| Changes during the year |  |  |
| – share option schemes | 74489 |  |
| 31 December 2023 | 2456941909 | 614 |

---

**Share capital**

The Company's ordinary shares are fully paid and no further contribution of capital may be required by the Company from the shareholders. All ordinary

shares rank equally with regard to participation in dividends and to share in the proceeds of the Company's residual assets upon a winding up of the

Company. Shareholders may, by ordinary resolution, declare final dividends, but not in excess ofthe amount recommended by the Directors. Holders of

ordinary shares have no pre-emptive rights.

On a show of hands every shareholder who is present in person at a general meeting is entitled to one vote regardless of the number of shares held by the

shareholder, unless a poll is demanded. On a poll, every shareholder who is present in person or by proxy has one vote for every share held by the

shareholder. The Company's Annual General Meeting voting is undertaken by way of a poll.

All rights attached to the Company's shares held by the Group as treasury shares are suspended until those shares are reissued.

**(b) Share premium account, capital redemption reserves and merger reserves comprise:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Share <br>premium <br>account <br>£m<br>| Capital <br>redemption <br>reserves <br>£m<br>| Merger <br>reserves <br>£m<br>| Total <br>£m<br>|
| **31 December 2025** | **123** | **138** | **26414** | **26675** |
| 31 December 2024 | 121 | 130 | 26414 | 26665 |
| 31 December 2023 | 115 | 101 | 26414 | 26630 |

---

**Share premium account**

The share premium account includes the difference between the value of shares issued and their nominal value. The share premium increase includes

£2 million (2024: £6 million; 2023: £2 million) in respect of ordinary shares issued under the Company's share option schemes.

**Capital redemption account**

On the purchase of own shares as part of the share buy-back programme for shares which are cancelled, a transfer is made from retained earnings to the

capital redemption reserve equivalent to the nominal value of shares purchased. Purchased shares which are not cancelled are classified as treasury shares and

presented as a deduction from total equity. During 2024, 87 million shares purchased under previous share buy-back programmes were cancelled.

**Merger reserve account**

The merger reserve comprises:

a.In 1999, shares were issued for the acquisition of the Rothmans International B.V. Group and the difference between the fair value ofshares issued and

their nominal value of £3,748 million was credited to merger reserves; and

b.On 25 July 2017, the Group announced the completion of the acquisition of the remaining 57.8% of the Reynolds Group not already owned by the Group.

Shares were issued for the acquisition and the difference between the fair value of shares issued and their nominal value of £22,666 million was credited to

merger reserves.

British American Tobacco p.l.c. Form 20-F 2025<br>

**(c) Equity attributed to owners of the parent - movements in other reserves and retained earnings (which are after deducting treasury shares)** 

**comprise:**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | | | **Retained earnings** | **Retained earnings** |
| | <br>**Translation** <br>**reserve** <br>**(i)**<br>**£m**<br>| <br>**Hedging** <br>**reserve** <br>**(ii)**<br>**£m**<br>| <br>**Fair** <br>**value** <br>**reserve** <br>**(iii)**<br>**£m**<br>| <br>**Revaluation**<br>**reserve** <br>**(iv)**<br>**£m**<br>| <br>**Other** <br>**(v)**<br>**£m**<br>| <br>**Total** <br>**other** <br>**reserves**<br>**£m**<br>| **Treasury** <br>**shares** <br>**(vi)**<br>**£m**<br>| **Other**<br>**£m**<br>|
| **1 January 2025** | **(1615)** | **(84)** | **45** | **179** | **573** | **(902)** | **(4408)** | **26018** |
| **Comprehensive income and expense** |  |  |  |  |  |  |  |  |
| Profit for the year | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **7764** |
| Foreign currency translation and hedges of net investments in <br>foreign operations<br>|  |  |  |  |  |  |  |  |
| –differences on exchange from translation of <br>foreign operations<br>| **(3310)** |  |  |  |  | **(3310)** |  |  |
| – reclassified and reported in profit for the year | **2** |  |  |  |  | **2** |  |  |
| – net investment hedges - net fair value <br>gains on derivatives<br>| **151** | **—** | **—** | **—** | **—** | **151** | **—** | **—** |
| –net investment hedges - differences on exchange on <br>borrowings<br>| **(20)** | **—** | **—** | **—** | **—** | **(20)** | **—** | **—** |
| Cash flow hedges |  |  |  |  |  |  |  |  |
| – net fair value gains | **—** | **3** | **—** | **—** | **—** | **3** | **—** | **—** |
| – reclassified and reported in profit for the year | **—** | **16** | **—** | **—** | **—** | **16** | **—** | **—** |
| –tax on net fair value gains in respect of cash flow hedges <br>(note 10(f))<br>| **—** | **(13)** | **—** | **—** | **—** | **(13)** | **—** | **—** |
| Investments held at fair value |  |  |  |  |  |  |  |  |
| – net fair value losses | **—** | **—** | **(2)** | **—** | **—** | **(2)** | **—** | **—** |
| –reclassified and reported in retained earnings | **—** | **—** | **(4)** | **—** | **—** | **(4)** | **—** | **4** |
| Associates |  |  |  |  |  |  |  |  |
| - share of OCI, net of tax (note 9) | **(134)** | **1** | **—** | **—** | **—** | **(133)** | **—** | **—** |
| - differences on exchange reclassified to profit or loss (note 9) | **47** | **—** | **—** | **—** | **—** | **47** | **—** | **—** |
| Retirement benefit schemes |  |  |  |  |  |  |  |  |
| – net actuarial losses (note 15) | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **(10)** |
| – surplus recognition (note 15) | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **(66)** |
| Associates - share of OCI, net of tax (note 9) | **—** | **—** | **(4)** | **—** | **—** | **(4)** | **—** | **—** |
| **Other changes in equity** |  |  |  |  |  |  |  |  |
| Cash flow hedges reclassified and <br>reported in total assets<br>| **—** | **21** | **—** | **—** | **—** | **21** | **—** | **—** |
| Employee share options |  |  |  |  |  |  |  |  |
| – value of employee services | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **83** |
| – treasury shares used for share option schemes | **—** | **—** | **—** | **—** | **—** | **—** | **9** | **(9)** |
| Dividends and other appropriations |  |  |  |  |  |  |  |  |
| – ordinary shares | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **(5240)** |
| Purchase of own shares |  |  |  |  |  |  |  |  |
| – held in employee share ownership trusts | **—** | **—** | **—** | **—** | **—** | **—** | **(61)** | **—** |
| – share buy-back programme | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **(1114)** |
| Perpetual hybrid bonds |  |  |  |  |  |  |  |  |
| – coupons paid | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **(55)** |
| – tax on coupons paid | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **14** |
| – redemption of perpetual hybrid bonds, net of costs | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **(31)** |
| – reclassification of issuance costs. net of tax | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **(8)** |
| Non-controlling interests – acquisitions (note 27(c)) | **—** | **—** | **—** | **—** | **—** | **—** | **—** | **(15)** |
| Other movements | **—** | **—** | **—** | **—** | **—** | **—** | **77** | **(23)** |
| **31 December 2025** | **(4879)** | **(56)** | **35** | **179** | **573** | **(4148)** | **(4383)** | **27312** |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | | | Retained earnings | Retained earnings |
| | <br>Translation <br>reserve <br>(i)<br>£m<br>| <br>Hedging <br>reserve <br>(ii)<br>£m<br>| <br>Fair <br>value <br>reserve <br>(iii)<br>£m<br>| <br>Revaluation<br>reserve <br>(iv)<br>£m<br>| <br>Other <br>(v)<br>£m<br>| <br>Total other <br>reserves<br>£m<br>| Treasury <br>shares <br>(vi)<br>£m<br>| Other<br>£m<br>|
| **1 January 2024** | (1470) | (194) | 18 | 179 | 573 | (894) | (7096) | 31627 |
| **Comprehensive income and expense** |  |  |  |  |  |  |  |  |
| Profit for the year |  |  |  |  |  |  |  | 3068 |
| Foreign currency translation and hedges of net investments <br>in foreign operations<br>|  |  |  |  |  |  |  |  |
| –differences on exchange from translation of foreign <br>operations<br>| (193) |  |  |  |  | (193) |  |  |
| – reclassified and reported in profit for the year |  |  |  |  |  |  |  |  |
| –net investment hedges – net fair value gains on derivatives | 20 |  |  |  |  | 20 |  |  |
| –net investment hedges – differences on exchange on <br>borrowings<br>| 17 |  |  |  |  | 17 |  |  |
| Cash flow hedges |  |  |  |  |  |  |  |  |
| – net fair value gains |  | 65 |  |  |  | 65 |  |  |
| – reclassified and reported in profit for the year |  | 36 |  |  |  | 36 |  |  |
| –tax on net fair value gains in respect of cash flow hedges <br>(note 10(f))<br>|  | (23) |  |  |  | (23) |  |  |
| Investments held at fair value |  |  |  |  |  |  |  |  |
| – net fair value losses |  |  | (6) |  |  | (6) |  |  |
| Associates |  |  |  |  |  |  |  |  |
| - share of OCI, net of tax (note 9) | (32) | 19 |  |  |  | (13) |  |  |
| - differences on exchange reclassified to profit or loss (note <br>9)<br>| 43 |  |  |  |  | 43 |  |  |
| Retirement benefit schemes |  |  |  |  |  |  |  |  |
| – net actuarial losses (note 15) |  |  |  |  |  |  |  | (19) |
| – surplus recognition (note 15) |  |  |  |  |  |  |  | (14) |
| –tax on actuarial gains in respect of subsidiaries (note <br>10(f))<br>|  |  |  |  |  |  |  | (1) |
| Associates - share of OCI, net of tax (note 9) |  |  | 33 |  |  | 33 |  |  |
| **Other changes in equity** |  |  |  |  |  |  |  |  |
| Cash flow hedges reclassified and reported in total assets |  | 13 |  |  |  | 13 |  |  |
| Employee share options |  |  |  |  |  |  |  |  |
| – value of employee services |  |  |  |  |  |  |  | 70 |
| – treasury shares used for share option schemes |  |  |  |  |  |  | 8 | (8) |
| Dividends and other appropriations |  |  |  |  |  |  |  |  |
| – ordinary shares |  |  |  |  |  |  |  | (5209) |
| Purchase of own shares |  |  |  |  |  |  |  |  |
| – held in employee share ownership trusts |  |  |  |  |  |  | (94) |  |
| – share buy-back programme |  |  |  |  |  |  |  | (698) |
| Treasury shares cancelled |  |  |  |  |  |  | 2685 | (2685) |
| Perpetual hybrid bonds |  |  |  |  |  |  |  |  |
| – coupons paid |  |  |  |  |  |  |  | (56) |
| – tax on coupons paid |  |  |  |  |  |  |  | 14 |
| Reclassification of equity in respect of assets classified as <br>held-for-sale<br>|  |  |  |  |  |  |  |  |
| Other movements |  |  |  |  |  |  | 89 | (71) |
| **31 December 2024** | (1615) | (84) | 45 | 179 | 573 | (902) | (4408) | 26018 |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | | | Retained earnings | Retained earnings |
| | <br>Translation <br>reserve <br>(i)<br>£m<br>| <br>Hedging <br>reserve <br>(ii)<br>£m<br>| <br>Fair <br>value <br>reserve <br>(iii)<br>£m<br>| <br>Revaluation<br>reserve <br>(iv)<br>£m<br>| <br>Other <br>(v)<br>£m<br>| <br>Total other <br>reserves<br>£m<br>| Treasury <br>shares <br>(vi)<br>£m<br>| Other<br>£m<br>|
| **1 January 2023** | 2200 | (327) | 30 | 179 | 573 | 2655 | (7116) | 51197 |
| **Comprehensive income and expense** |  |  |  |  |  |  |  |  |
| Loss for the year |  |  |  |  |  |  |  | (14367) |
| Foreign currency translation and hedges of net investments <br>in foreign operations<br>|  |  |  |  |  |  |  |  |
| –differences on exchange from translation of foreign <br>operations<br>| (4007) |  |  |  |  | (4007) |  |  |
| – reclassified and reported in profit for the year | 552 |  |  |  |  | 552 |  |  |
| –net investment hedges – net fair value <br>loss on derivatives<br>| 236 |  |  |  |  | 236 |  |  |
| –net investment hedges – differences on exchange on <br>borrowings<br>| 9 |  |  |  |  | 9 |  |  |
| Cash flow hedges |  |  |  |  |  |  |  |  |
| – net fair value gains |  | 59 |  |  |  | 59 |  |  |
| – reclassified and reported in profit for the year |  | 12 |  |  |  | 12 |  |  |
| –tax on net fair value gains in respect of cash flow hedges <br>(note 10(f))<br>|  | (23) |  |  |  | (23) |  |  |
| Investments held at fair value |  |  |  |  |  |  |  |  |
| – net fair value gains |  |  | (6) |  |  | (6) |  |  |
| Associates – share of OCI, net of tax (note 9) | (165) | 58 |  |  |  | (107) |  |  |
| Retirement benefit schemes |  |  |  |  |  |  |  |  |
| – net actuarial gains (note 15) |  |  |  |  |  |  |  | (106) |
| – surplus recognition (note 15) |  |  |  |  |  |  |  | 24 |
| –tax on actuarial gains in respect of subsidiaries (note <br>10(f))<br>|  |  |  |  |  |  |  | 30 |
| Associates – share of OCI, net of tax (note 9) |  |  | (6) |  |  | (6) |  | 1 |
| **Other changes in equity** |  |  |  |  |  |  |  |  |
| Cash flow hedges reclassified and reported in total assets |  | 27 |  |  |  | 27 |  |  |
| Employee share options |  |  |  |  |  |  |  |  |
| –value of employee services |  |  |  |  |  |  |  | 71 |
| –treasury shares used for share option schemes |  |  |  |  |  |  | 14 | (14) |
| Dividends and other appropriations |  |  |  |  |  |  |  |  |
| –ordinary shares |  |  |  |  |  |  |  | (5071) |
| Purchase of own shares |  |  |  |  |  |  |  |  |
| –held in employee share ownership trusts |  |  |  |  |  |  | (110) |  |
| – share buy-back programme |  |  |  |  |  |  |  |  |
| Perpetual hybrid bonds |  |  |  |  |  |  |  |  |
| – coupons paid |  |  |  |  |  |  |  | (58) |
| – tax on coupons paid |  |  |  |  |  |  |  | 14 |
| Non-controlling interests - acquisitions (note 27(c)) |  |  |  |  |  |  |  |  |
| Reclassification of equity in respect of assets classified as <br>held-for-sale<br>| (295) |  |  |  |  | (295) |  |  |
| Other movements |  |  |  |  |  |  | 116 | (94) |
| **31 December 2023** | (1470) | (194) | 18 | 179 | 573 | (894) | (7096) | 31627 |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

**(i) Translation reserve:**

The translation reserve is explained in the accounting policy on foreign currencies in note 1. The Group's principal exchange rates used to convert the results

of the Group's foreign operations to sterling for the purposes of consolidation within the Group's financial statements are the US dollar, Euro, Australian

dollar, Bangladeshi taka, Brazilian real, Canadian dollar, Chilean peso, Danish krone, Indian rupee, Indonesian rupiah, Japanese yen, Romanian leu,

Singaporean dollar, South African rand and Swiss franc and are readily exchangeable into sterling or other freely convertible currencies. In certain other

markets, where there is a lack of exchangeability, the exchange rate is estimated using observable data such as inflation-adjusted exchange rates or premiums

paid to obtain hard currency from financial institutions.

In 2025, included within the differences on exchange from translation of foreign operations is £2 million (2024: nil; 2023: £552 million) which has been

reclassified from reserves to the income statement and recognised in other operating expenses. In 2023, this foreign exchange reclassified to the income

statement was recognised as an adjusting item. This was in relation to £554 million in respect of the sale of the Russian and Belarusian subsidiaries and a loss

of £2 millionin respect of the move to above market business models and Quantum-related initiatives.

In 2025, the Group divested10%of its equity stake in ITC and£47 million was reclassified from reserves to the income statement and recognised in share of

post-tax results of associates and joint ventures. In 2024, the Group divested12%of its equity stake in ITC and£43 million was reclassified from reserves to

the income statement and recognised in the share of post-tax results of associates and joint ventures. In both years, the reclassification to the income statement

was recognised as an adjusting item.

**(ii) Hedging reserve:**

The hedging reserve is explained in the accounting policy on financial instruments in note 1.

Of the amounts reclassified from the hedging reserve and reported in profit for the year, a loss of £29 million (2024: £33 million loss; 2023: £51 million loss)

and a loss of £4 million (2024: £6 million gain; 2023: £4 million loss) were reported within revenue and raw materials and consumables, respectively,

together with a gain of £1 million (2024: £6 million loss; 2023: £17 million loss) reported in other operating expenses, and a gain of £48 million (2024:

£69 million gain; 2023: £84 million gain) reported within net finance costs.

The Group hedges certain foreign currency denominated borrowings with cross-currency interest rate swaps. As permitted by IFRS 9 *Financial Instruments*,

the foreign currency basis spreads have been separated from the hedging instrument and are recognised in reserves as a 'cost of hedging' and are reclassified

to the income statement in the same period in which profit and loss is affected by the hedged expected cash flows as a component of the associated interest

expense. The basis spreads are included within hedging reserves as they are not material. Included within the balance of hedging reserves at 31 December

2025 is an accumulated amount of nil (2024: £2 million loss; 2023: £6 million loss) in respect of the cost of hedging.

**(iii) Fair value reserve:**

The fair value reserve is explained in the accounting policy on financial instruments in note 1. Fair value gains and losses arising from investments held at

fair value through other comprehensive income are recognised in this reserve.

As a result of ITC's demerger of its hotel business in January 2025, the Group received a15%stake in the newly incorporated ITC Hotels in the form of a

dividend in specie of£533million. In December 2025, around59% of the Group's investment in ITC Hotels was sold to investors by way of an accelerated

bookbuild process. The fair value gains associated with the investment disposed of were transferred from the fair value reserve into the profit and loss

reserve. Refer to note 18 for further information.

**(iv) Revaluation reserve:**

The revaluation reserve relates to the acquisition of the cigarette and snus business of Skandinavisk Tobakskompagni in 2008.

**(v) Other reserves:**

Other reserves comprise:

a.£483 million which arose in 1998 from merger accounting in a Scheme of Arrangement and Reconstruction whereby British American Tobacco p.l.c.

acquired the entire share capital of B.A.T Industries p.l.c. and the share capital of that company's principal financial services subsidiaries was distributed,

so effectively demerging them; and

b.In the 1999 Rothmans transaction, convertible redeemable preference shares were issued as part of the consideration. The discount on these shares was

amortised by crediting other reserves and charging retained earnings. The £90 million balance in other reserves comprises the accumulated balance in

respect of the preference shares converted during 2004.

**(vi) Treasury shares:**

Total equity attributable to owners of the parent is stated after deducting the cost of treasury shares which include £4,105 million (2024: £4,114 million;

2023: £6,807 million) for shares repurchased and not cancelled and £278 million (2024: £294 million; 2023: £289 million) in respect of the cost of own

shares held in employee share ownership trusts.

On 18 March 2024, the Group announced a £1.6 billion share buy-back programme starting with £700 million in 2024 and with the remaining £900 million

in 2025. The purpose of this programme is to reduce the issued share capital of the Company and the shares were cancelled on purchase. Following the

partial sale of ITC shares on 28 May 2025, the Group announced an extension of the share buy-back programme of £200 million, taking the total amount

repurchased in 2025 to £1.1 billion. On 9 December 2025, the Group announced an increase to the share buy-back programme of £1.3 billion commencing in

2026. In respect of the share buy-back programme announced in 2024 and 2025, during the year the Group bought back and cancelled 30,460,763 (2024:

27,392,429)shares, for a total consideration of £1,114 million (2024: £698 million) inclusive of transaction costs of £6 million (2024: £3 million) that have

been deducted from equity. Additionally, in 2024, 87 million shares held in the Company's treasury share account previously purchased under prior year

share buy-back programmes were cancelled.

As at 31 December 2025, treasury shares include 6,132,171 (2024: 7,113,821; 2023: 5,951,979) shares held in trust and 132,988,352 (2024: 133,266,206;

2023: 220,533,855) shares repurchased and not cancelled as part of the Company's share buy-back programme. From March 2020, the Company has utilised

shares acquired in the share buy-back programme to satisfy share-based payment awards made to certain employees.

British American Tobacco p.l.c. Form 20-F 2025<br>

**(d) Perpetual hybrid bonds**

The Group issues perpetual hybrid bonds and, as the Group has the unconditional right to avoid transferring cash or another financial asset in relation to these

bonds, they are classified as equity instruments in the consolidated financial statements. Issuance costs associated with these bonds are also recognised within

equity.

The coupons associated with perpetual hybrid bonds are fixed and would reset to rates determined by the contractual terms of each instrument on certain

dates. The bonds are perpetual in nature and do not have maturity dates for the repayment of principal. The contractual terms of the perpetual hybrid bonds

allow the Group to defer coupon payments, however certain contingent events could trigger mandatory payments of such deferred coupons, including the

payment of dividends on, and the repurchase of, ordinary shares, subject to certain exceptions in each case. The full terms and conditions of such events can

be found in the relevant prospectus which is available under the debt facilities section of the Group's debt microsite (https://www.bat.com/content/dam/

batcom/global/main-nav/investors-and-reporting/debt-investors/debt-facilities/2025_-_Hybrid_Standalone_Prospectus.pdf).

On 27 September 2021, the Group issuedtwo€1 billion perpetual hybrid bonds amounting to £1,703 million, which have been classified as equity. Issuance

costs of these bonds, amounting to €26 million (£22 million), have been recognised within equity, net of £4 million of tax on issuance costs.

These bonds include an optional par redemption feature, exercisable at the Group's discretion, from September 2026 to December 2026 (the 3% perpetual

hybrid bond) and June 2029 to September 2029 (the 3.75% perpetual hybrid bond), as well as on specified dates thereafter, or in the event of specific

circumstances (such as a change in IFRS or tax regime) as set out in the individual terms of each issue. On 21 October 2025, the Group announced a tender

offer to purchase any and all of its outstanding €1 billion3% perpetual hybrid bonds from the holders of the securities. On 29 October 2025, the Group

announced the final results of the tender offer, confirming that holders of €807 million in aggregate principal amount of the securities (representing c. 81% of

the total outstanding principal amount) had validly tendered their securities, which were accepted for purchase and redeemed at a premium of £3 million. As

the aggregate principal amount of the securities validly tendered and accepted for purchase pursuant to the offer exceeded the 75% threshold specified in the

terms and conditions of the securities, the Group exercised its Substantial Repurchase Event Redemption Option and on 10 November 2025 redeemed the

remaining c. 19% at their principal amount. The cash paid in respect of the redemption of the €1 billion3% perpetual hybrid bond was £883 million

(inclusive of redemption costs) and all of these securities have been cancelled. Included within the redemption of perpetual hybrid bonds equity movement of

£39 million is £29 million in relation to the difference in spot rates between issuance and redemption. This has been treated as an adjusting item for the

purposes of calculating the Group's adjusted earnings per share in note 11.

On 30 October 2025, the Group issued two series of €600 million perpetual hybrid bonds amounting to £1,057 million. Issuance costs of the bonds

amounting to €8 million (£7 million), have been recognised within equity, net of £2 million of tax on issuance costs. These bonds include an optional par

redemption feature exercisable at the Group's discretion from October 2030 to January 2031 (the 4.2% perpetual hybrid bond) and July 2033 to October

2033 (the 4.75% perpetual hybrid bond), or in the event of specific circumstances (such as a change in IFRS or tax regime) as set out in the individual terms

of each issue.

During the year, the Group did not defer any eligible coupon payments and paid a coupon of £33 million in September 2025 (September 2024: £31 million;

September 2023: £33 million) on the 3.75%September 2029 bond and £22 million in October and November 2025 (December 2024: £25 million;

December 2023: £26 million) on the 3%December 2026 bond which have been recognised within equity.

Differences between the coupon recognised in the capital and reserves statement and the coupon paid on perpetual hybrid bonds in the cash flow statement

are due to foreign exchange arising on short timing differences between recognition and settlement.

The fair value of these bonds at 31 December 2025 is £1,926 million (2024: £1,211 million; 2023: £1,512 million).

**(e) Non-controlling interests**

Movements in non-controlling interests primarily relate to profit for the year and dividends (reported as a movement in retained earnings) and differences on

exchange arising from the translation into sterling (reported as a movement in other reserves). Information on subsidiaries with non-controlling interests is

provided in note 32. At 31 December 2025, the non-controlling interest in Brascuba amounts to a loss of £33 million.

**(f) Dividends and other appropriations**

The interim quarterly dividend payment for the year ended 31 December 2024 of 240.24p per ordinary share (31 December 2023: 235.52p per ordinary

share) was payable in four equal instalments: amounts payable in May 2025 of £1,314 million (May 2024: £1,316 million), August 2025 of £1,317 million

(August 2024: £1,303 million), November 2025 of £1,313 million (November 2024: £1,302 million) and February 2026 of £1,308 million (February 2025:

£1,296 million), respectively. The total dividends recognised as an appropriation from reserves in 2025 was £5,240 million (2024: £5,209 million; 2023:

£5,071 million).

The Board has declared an interim dividend of 245.04p per ordinary share of 25p, for the year ended 31 December 2025, payable in four equal quarterly

instalments of 61.26p per ordinary share in May 2026, August 2026, November 2026 and February 2027. These payments will be recognised as

appropriations from reserves in 2026 and 2027. The total amount payable is estimated to be £5,341 million based on the number of shares outstanding at the

date of these accounts.

British American Tobacco p.l.c. Form 20-F 2025<br>

**23 Borrowings**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | Currency | Maturity dates | Interest rates | **2025**<br>**£m**<br>| 2024<br>£m<br>|
| Eurobonds | Euro | 2027 to 2045 | 1.3% to 5.4% | **4931** | 5236 |
|  | UK sterling | 2026 to 2055 | 2.3% to 6.0% | **1993** | 2291 |
|  | Swiss franc | 2026 | 1.4% | **236** | 221 |
| Bonds issued pursuant to rules under the U.S. <br>Securities Act (as amended)<br>| US dollar | 2026 to 2055 | 1.7% to 8.1% | **26655** | 28268 |
| Bonds and notes |  |  |  | **33815** | 36016 |
| Bank loans |  |  |  | **689** | 211 |
| Bank overdrafts |  |  |  | **37** | 138 |
| Lease liabilities |  |  |  | **529** | 585 |
|  |  |  |  | **35070** | 36950 |

---

Perpetual hybrid bonds issued by the Group have been classified as equity (note 22(d)) and are therefore excluded from borrowings.

Current borrowings per the balance sheet include interest payable of £571 million at 31 December 2025 (2024: £565 million). Included within borrowings

are £7,844 million (2024: £8,750 million) of borrowings subject to fair value hedges where their amortised cost has been decreased by £44 million (2024:

£215 million decrease).

The fair value of borrowings is estimated to be £33,717 million (2024: £34,596 million) of which £32,462 million (2024: £33,663 million) has been

calculated using quoted market prices and is within level 1 of the fair value hierarchy and £1,255 million (2024: £933 million) has been calculated based on

discounted cash flow analysis and is within level 3 of the fair value hierarchy.

Amounts secured on Group assets including property, plant and equipment, inventory and receivables as at 31 December 2025 are nil (2024: nil). The

majority of lease liabilities are secured against the associated assets.

Borrowings are repayable as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Per balance sheet | Per balance sheet | Contractual gross maturities | Contractual gross maturities |
| | **2025**<br>**£m**<br>| 2024<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>|
| Within one year | **3362** | 4312 | **4246** | 5276 |
| Between one and two years | **2973** | 2644 | **4444** | 4084 |
| Between two and three years | **3813** | 3012 | **5103** | 4522 |
| Between three and four years | **1695** | 3435 | **2879** | 4695 |
| Between four and five years | **2647** | 1725 | **3749** | 2899 |
| Beyond five years | **20580** | 21822 | **30225** | 32232 |
|  | **35070** | 36950 | **50646** | 53708 |

---

The contractual gross maturities in each year include the borrowings maturing in that year together with forecast interest payments onall borrowings which

are outstanding for all or part of that year.

Borrowings are denominated in the functional currency of the subsidiary undertaking or other currencies as shown below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Functional <br>currency<br>£m<br>| US<br>dollar<br>£m<br>| UK <br>sterling<br>£m<br>| Euro<br>£m<br>| Other <br>currencies<br>£m<br>| Total<br>£m<br>|
| **31 December 2025** |  |  |  |  |  |  |
| Total borrowings | **28201** | **3134** | **—** | **3460** | **275** | **35070** |
| Effect of derivative financial instruments |  |  |  |  |  |  |
| – cross-currency swaps | **909** | **(427)** | **—** | **(563)** | **—** | **(81)** |
| – forward foreign currency contracts | **(564)** | **(562)** | **—** | **764** | **360** | **(2)** |
|  | **28546** | **2145** | **—** | **3661** | **635** | **34987** |
| **31 December 2024** |  |  |  |  |  |  |
| Total borrowings | 28830 | 3754 | 302 | 3800 | 264 | 36950 |
| Effect of derivative financial instruments |  |  |  |  |  |  |
| – cross-currency swaps | 609 | (148) |  | (533) |  | (72) |
| – forward foreign currency contracts | 68 | (901) |  | 435 | 395 | (3) |
|  | 29507 | 2705 | 302 | 3702 | 659 | 36875 |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

The exposure to interest rate changes when borrowings are re-priced is as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | Within <br>1 year<br>£m<br>| Between <br>1-2 years<br>£m<br>| Between <br>2-3 years<br>£m<br>| Between <br>3-4 years<br>£m<br>| Between <br>4-5 years<br>£m<br>| Beyond <br>5 years<br>£m<br>| Total<br>£m<br>|
| **31 December 2025** |  |  |  |  |  |  |  |
| Total borrowings | **3362** | **2973** | **3813** | **1695** | **2647** | **20580** | **35070** |
| Effect of derivative financial instruments |  |  |  |  |  |  |  |
| – interest rate swaps | **7108** | **(1690)** | **—** | **—** | **(830)** | **(4588)** | **—** |
| – cross-currency swaps | **448** | **(102)** | **—** | **(427)** | **—** | **—** | **(81)** |
|  | **10918** | **1181** | **3813** | **1268** | **1817** | **15992** | **34989** |
| **31 December 2024** |  |  |  |  |  |  |  |
| Total borrowings | 4312 | 2644 | 3012 | 3435 | 1725 | 21822 | 36950 |
| Effect of derivative financial instruments |  |  |  |  |  |  |  |
| – interest rate swaps | 6494 |  | (1815) |  |  | (4679) |  |
| – cross-currency swaps | 459 |  | (72) |  | (459) |  | (72) |
|  | 11265 | 2644 | 1125 | 3435 | 1266 | 17143 | 36878 |

---

Lease liabilities are repayable as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Per balance sheet | Per balance sheet | Contractual gross maturities | Contractual gross maturities |
| | **2025**<br>**£m**<br>| 2024<br>£m<br>| **2025**<br>**£m**<br>| 2024<br>£m<br>|
| Within one year | **153** | 141 | **189** | 171 |
| Between one and two years | **113** | 133 | **135** | 165 |
| Between two and three years | **66** | 87 | **82** | 103 |
| Between three and four years | **48** | 49 | **60** | 61 |
| Between four and five years | **34** | 38 | **44** | 47 |
| Beyond five years | **115** | 137 | **168** | 176 |
|  | **529** | 585 | **678** | 723 |

---

For more information on leasing arrangements, refer to note 13.

As at 31 December 2025, the Group's undrawn committed borrowing facilities (note 26) amount to £7,695 million (2024: £7,748 million) with

£5,195 million maturing within one year (2024: £5,056 million maturing within one year), nil maturing between one and two years (2024: £154 million

maturing between one and two years), nil maturing between two and three years (2024: £2,538 million maturing between two and three years), nil maturing

between three and four years (2024: nil maturing between three and four years) and £2,500 million maturing between four and five years (2024: nil maturing

between four and five years).

British American Tobacco p.l.c. Form 20-F 2025<br>

The Group's composition and movements in net debt are presented below along with a reconciliation to the financing activities in the Group Cash Flow

Statement:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | <br>Notes | <br>**Opening** <br>**balance**<br>| <br>**Cash flow** | <br>**Foreign** <br>**exchange**<br>| <br>**Fair value,** <br>**accrued** <br>**interest and** <br>**other**<br>| <br>**Held for Sale**  | **2025**<br>**£m**<br>**Closing** <br>**balance**<br>|
| Borrowings (excluding lease liabilities)<sup>\*</sup> |  | **36365** | **(218)** | **(1799)** | **193** | **—** | **34541** |
| Lease liabilities |  | **585** | **(177)** | **(11)** | **132** | **—** | **529** |
| Derivatives in respect of net debt | 19 | **113** | **(313)** | **535** | **(347)** | **—** | **(12)** |
| Cash and cash equivalents | 21 | **(5297)** | **1130** | **138** | **(6)** | **208** | **(3827)** |
| Current investments held at fair value | 18 | **(513)** | **494** | **16** | **(13)** | **—** | **(16)** |
|  |  | **31253** | **916** | **(1121)** | **(41)** | **208** | **31215** |
|  |  |  |  |  |  |  | 2024<br>£m<br>|
|  | Notes | Opening <br>balance<br>| Cash flow | Foreign <br>exchange<br>| Fair value, <br>accrued interest <br>and other<br>| Held for Sale  | Closing balance |
| Borrowings (excluding lease liabilities)<sup>\*</sup> |  | 39232 | (2387) | 231 | (711) |  | 36365 |
| Lease liabilities |  | 498 | (165) | (27) | 279 |  | 585 |
| Derivatives in respect of net debt | 19 | 170 | (133) | 106 | (30) |  | 113 |
| Cash and cash equivalents | 21 | (4659) | (907) | 323 | (54) |  | (5297) |
| Current investments held at fair value | 18 | (601) | 99 | 41 | (52) |  | (513) |
|  |  | 34640 | (3493) | 674 | (568) |  | 31253 |

---

**Note:**

\*Borrowings as at 31 December 2025 include £591 million (2024: £670 million) in respect of the purchase price adjustments relating to the acquisition of Reynolds American.

In the table above, movements in accrued interest relate to the net movement year-on-year and cash flows related to interest payments are not included.

Fair value, accrued interest and other movements in lease liabilities in 2025 mainly comprise additions of £132 million (2024: £279 million) (net of

reassessments, modifications and terminations), see note 13(a). In2024, included in the £279 million were new lease liabilities of £12 million, mainly arising

from sale and leaseback transactions. The movement of £13 million (2024: £52 million) in current investments held at fair value represents the fair value

gains for these investments.

---

| | | |
|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>|
| Cash flows per net debt statement | **916** | (3493) |
| Non-financing cash flows included in net debt | **(1524)** | 773 |
| Interest paid | **(1631)** | (1703) |
| Interest element of lease liabilities | **(40)** | (37) |
| Remaining cash flows relating to derivative financial instruments | **(67)** | 5 |
| Purchases of own shares held in employee share ownership trusts | **(61)** | (94) |
| Purchase of own shares | **(1112)** | (698) |
| Proceeds from issue of perpetual hybrid bonds | **1050** |  |
| Redemption of perpetual hybrid bonds, net of costs | **(883)** |  |
| Coupon paid on perpetual hybrid bonds | **(54)** | (56) |
| Dividends paid to owners of the parent | **(5238)** | (5213) |
| Capital injection from and purchase of non-controlling interests  | **(19)** |  |
| Dividends paid to non-controlling interests | **(100)** | (121) |
| Other | **1** | 5 |
| **Net cash used in financing activities per cash flow statement** | **(8762)** | (10632) |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

**24 Provisions for liabilities**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Restructuring** <br>**of existing** <br>**businesses**<br>**£m**<br>| **Employee-**<br>**related** <br>**benefits**<br>**£m**<br>| **Fox River**<br>**£m**<br>| **Approved Plans** <br>**in Canada**<br>**£m**<br>| **Other** <br>**provisions**<br>**£m**<br>| **Total**<br>**£m**<br>|
| **1 January 2025** | **65** | **42** | **44** | **6203** | **761** | **7115** |
| Differences on exchange | **2** | **(3)** | **—** | **(168)** | **7** | **(162)** |
| Provided in respect of the year\* | **24** | **8** | **—** | **(708)** | **229** | **(447)** |
| Transferred to Canada Settlement Payable (Note <br>25)<br>| **—** | **—** | **—** | **(85)** | **—** | **(85)** |
| Discounting | **—** | **—** | **—** | **112** | **3** | **115** |
| Utilised during the year | **(36)** | **(12)** | **(3)** | **(2560)** | **(156)** | **(2767)** |
| **31 December 2025** | **55** | **35** | **41** | **2794** | **844** | **3769** |
| Analysed on the balance sheet as |  |  |  |  |  |  |
| – current | **37** | **11** | **3** | **—** | **557** | **608** |
| – non-current | **18** | **24** | **38** | **2794** | **287** | **3161** |
|  | **55** | **35** | **41** | **2794** | **844** | **3769** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Restructuring <br>of existing <br>businesses<br>£m<br>| Employee-related <br>benefits<br>£m<br>| Fox River<br>£m<br>| The Approved <br>Plans in Canada <br>£m<br>| Other <br>provisions<br>£m<br>| Total<br>£m<br>|
| **1 January 2024** | 139 | 42 | 44 |  | 774 | 999 |
| Differences on exchange | (5) | (2) |  |  | (57) | (64) |
| Provided in respect of the year\* | (15) | 15 |  | 6203 | 111 | 6314 |
| Utilised during the year | (54) | (13) |  |  | (67) | (134) |
| **31 December 2024** | 65 | 42 | 44 | 6203 | 761 | 7115 |
| Analysed on the balance sheet as |  |  |  |  |  |  |
| – current | 33 | 11 | 2 | 2456 | 542 | 3044 |
| – non-current | 32 | 31 | 42 | 3747 | 219 | 4071 |
|  | 65 | 42 | 44 | 6203 | 761 | 7115 |

---

**Note:**

\*Amounts provided above are shown net of reversals of unused provisions which include reversals of £29 million (2024: £21 million) for restructuring of existing businesses, £14 million (2024: £12 million) for

employee benefits, £919 million for the Approved Plans in Canada (2024: nil) and £193 million (2024: £412 million) for other provisions. Included in the £412 million in 2024 was an amount of £270 million

related to interest provision for FII GLO which was reclassified to trade and other payables in 2024.

**Restructuring of existing businesses**

The restructuring provisions relate to the restructuring costs incurred and reported as adjusting items. The principal restructuring activities in 2025 are described

in note 7 and primarily include the cost of employee packages and other operating expenses associated with the Dhaka factory closure in Bangladesh.

Provisions associated with redundancy packages are determined based on termination packages offered in each country. Restructuring of existing businesses

provisions also include long-term social plans associated with redundancy programmes from previous years, mainly in relation to Quantum. The long-term

social plans primarily relate to social plans in Germany, which span over several years and are based on actuarial calculations. These are discounted to present

value using Central Bank rates. We do not consider the effect of discounting to be material. The provisions for long-term social plans include future payments

related to contracts that are already fixed. Given that there is little or no variability expected in the timing and amount of the payments, noadditional risk has

been incorporated in the discounting. While some elements of the non-current provisions of £18 million will unwind over several years, as termination

payments are made over extended periods in some countries, it is estimated that approximately 99% ofthese non-current provisions will unwind within five

years.

**Employee-related benefits**

Employee-related benefits mainly relate to employee benefits other than post-employment benefits. The principal components of these provisions are gratuity

and termination awards, 'jubilee' payments due after a certain service period and expected payments associated with long-term disability. The majority of these

provisions are calculated by actuaries. It is estimated that approximately 59% of the non-current provisions of £24 million will unwind within five years.

**Fox River**

A provision of £274 million was made in 2011 for a potential claim under a 1998 settlement agreement entered into by a Group subsidiary inrespect of the

clean-up of sediment in the Fox River. On 30 September 2014, the Group, NCR, Appvion and Windward Prospects entered into a funding agreement; the

details of this agreement are explained in note 31. Under this agreement, no payments were made in 2025 (2024: payments of less than £1 million). In 2025,

the Group incurred legal costs of £3 million which were also charged against the provision. It is expected that the non-current provision will unwind within five

years.

**The Approved Plans in Canada**

***CCAA Proceedings***

In March 2019, ITCAN obtained an Initial Order from the Ontario Superior Court of Justice granting it protection under the Companies' Creditors

Arrangement Act (CCAA). Under a confidential court supervised mediation process, ITCAN began the process of negotiating a possible settlement of all of

its outstanding tobacco litigation in Canada while continuing to run its business in the normal course. On 17 October 2024, the court-appointed mediator and

monitor filed a proposed plan of compromise and arrangement in the Ontario Superior Court of Justice. Substantially similar proposed plans were also filed

for RBH and JTIM (collectively, the Proposed Plans).

Under the Proposed Plans, ITCAN, RBH and JTIM (the Companies) would pay an aggregate settlement amount of CAD$32.5 billion (£17.6 billion at 31

December 2025 rate of exchange) (the Global Settlement Amount). This amount would be funded by:

British American Tobacco p.l.c. Form 20-F 2025<br>

–an upfront payment equal to all the Companies' cash and cash equivalents on hand (including investments held at fair value) plus certain court deposits

(subject to an aggregate industry holdback of CAD$750 million (£407 million at 31 December 2025 rate of exchange)) plus 85% of any cash tax refunds

that may be received by the Companies on account of the upfront payments; and

–annual payments based on a percentage (initially 85%, reducing over time) of each of the Companies' net income after taxes, based on amounts generated

from all sources, excluding New Categories, until the aggregate settlement amount is paid. The performance of ITCAN's New Categories (including

vapour products and nicotine pouches) is not included in the basis for calculating the annual payments.

On 31 October 2024, the court granted the Claims Procedure Orders and Meeting Orders. In accordance with the Meeting Order, a creditors' meeting was

held on 12 December 2024 and the Proposed Plans were approved by the requisite majorities of the creditors. A sanction hearing took place between 29-31

January 2025. During the sanction hearing, the court was asked to sanction the Proposed Plans. Motions for orders to amend elements of the Proposed Plans

were presented on 27 February 2025. The requested amendments to the Proposed Plans resulted in allocating the cash holdback of CAD$750 million

(£407 million at 31 December 2025 rate of exchange) from the upfront payment to RBH. On 3 March 2025, the court approved that the Proposed Plans be

amended accordingly (the Amended Plans).

On 6 March 2025, the court sanctioned the Amended Plans, herein referred to as the Approved Plans. In this sanction order, the court also extended the Stays

of litigation up to the implementation date of the Approved Plans.

On 29 August 2025 following completion of a number of administrative steps, the Approved Plans were implemented and ITCAN exited the CCAA process.

In the second half of 2025, the anticipated upfront payment was paid into the Global Settlement Trust Account as the Upfront Cash Contribution of the

Global Settlement Amount. Refer to the 'Upfront payments' section below for further information.

The Approved Plan for ITCAN resolves all Canadian tobacco litigation and provides a full and comprehensive release to ITCAN, BAT p.l.c. and all related

companies for all past, present and future tobacco claims in Canada.

***Upfront payment***

As outlined in the Approved Plan, ITCAN is required to pay into the Global Settlement Trust Account, cash and cash equivalents on hand and investments

held at fair value in Canada plus certain court deposits. At 31 December 2024, a provision of CAD$4,423 million (£2,456 million) was recognised in relation

to this liability. As a result of the Approved Plan for ITCAN being sanctioned, the provision was increased and CAD$4,768 million (£2,560 million) was

paid in the second half of 2025. In addition, CAD$758 million (£411 million at 31 December 2025 rate of exchange) previously paid into escrow between

2015 and 2017 and expensed by the Group in 2019 was transferred, and CAD$6 million (£3 million) in insurance settlements were also paid into the Global

Settlement Trust Account. The total ITCAN Upfront Cash Contribution deducted from the Global Settlement Amount of CAD$32.5 billion (£17.6 billionat

31 December 2025 rate of exchange), including amounts previously paid into escrow, is therefore CAD$5,532 million (£3,000 million).

***Future payments***

As the terms of the Approved Plans dictate, there is no predetermined amount that ITCAN or any of the Companies individually are required to pay. ITCAN

and the other Companies are required to make annual payments based on a percentage of net income after tax generated from all sources, excluding New

Categories, until the Companies settle the liability in full. In accordance with IAS 37, a provision has been recognised to reflect management's best estimate

of ITCAN's total payments under the Approved Plans. The provision is based on management's best estimate using a five-year cash flow forecast that

incorporates certain assumptions used in the value-in-use model and which are used to support the carrying value of the Canadian CGU for goodwill

impairment testing purposes, such as the rate at which volumes will decline, future pricing plans and terminal decline. In addition, certain assumptions

specific to the provision have been incorporated including the future financial performance of each of the Companies (excluding New Categories), enacted

tax laws and the pre-tax discount rate. A pre-tax discount rate of 3.86% (2024: 3.27%) reflecting the risk free rate specific to Canada and aligned with the

anticipated timeline for the payments has been used to calculate the present value of the provision. At 31 December 2025, the provision is

CAD$5,152 million (£2,794 million) (2024: CAD$6,750 million (£3,747 million)).

Management uses judgement to determine the key assumptions used to calculate the present value of the provision. Changes to key assumptions can

significantly impact the amount expected to be paid and the years over which payments are expected to be made. During 2025, based on revisions to the

provision, a net credit of £708 million was recognised as an adjusting item in profit from operations in the income statement. In light of the revised forecast of

the Canadian business to reflect the current difficult trading environment, the key assumptions used to calculate the provision are the rate at which volumes

will decline, future pricing plans and the discount rate. The impact of reasonably possible changes to these key assumptions on an individual basis, based on

the liability at 31 December 2025, has been outlined below:

–Rate at which volumes will decline: If the rate at which volumes decline increases by a further 3% the provision is expected to decrease by £415 million.

However, if the rate of volume decline is 3% lower than management's current forecast the provision would be expected to increase by £282 million;

–Execution of future pricing plans: ITCAN's future pricing plans are incorporated into the calculation of the provision. Pricing delivery is subject to

competitive actions and the relative pricing positions of brands and may vary depending on the competitive market conditions. If ITCAN's pricing delivery

is between 60% to 120% of the base assumptions, the provision would decrease by £244 million or increase by £94 million, respectively; and

–Discount rate: If the discount rate used to calculate the present value of the provision decreased by 1% then the provision would increase by £330 million.

However, if the discount rate increased by 1%, the provision would decrease by £273 million.

The above sensitivities have been considered in isolation and a combination of changes in several assumptions, including the future financial performance of

each of the Companies (excluding New Categories), may materially impact the provision.

The first payment of the annual contribution has been calculated using the 2025 financial results of ITCAN (from 1 August to 31 December 2025) and a

payable of CAD$156 million (£85 million) has been recognised with a corresponding release of the provision. The annual contribution payable will be settled

on 30 July 2026. The payments will continue until the aggregate settlement amount is paid. It is expected that payments will continue for at least 40 years.

The provision is reviewed on a bi-annual basis and revised to reflect changes resulting from reversals, the unwinding of the discount and changes in

assumptions. The revisions of the provision are recognised in the income statement as an adjusting item.

Refer to note 31 for further information in relation to Canada litigation.

**Other**

Other provisions comprise balances set up in the ordinary course of general business that cannot be classified within the other categories, such as sales returns

and amounts in respect of supplier, excise and other disputes. Thenature of the amounts provided in respect of disputes is such that the extent and timing of

cash flows are difficult to estimate and the ultimate liability may vary from the amounts provided.

In accordance with IFRS 15 *Revenue from Contracts with Customers, s*ales return provisions are recognised based on a reasonable estimate of likely returns.

In 2025, the sales return provision, included in other provisions, was £104 million (2024: £106 million).

Included in other provisions there is a provision of £82 million (2024: £51 million) for deferred consideration in relation with the acquisition of Beni Oral

Nicotine LLC. The consideration is up to US$200 million (£160 million), deferred for five years and subject to the achievement of certain milestones. The

fair value of the contingent consideration has been determined using a Monte Carlo simulation for the different scenarios and discounted. Refer to note 27(a)

for more details.

Other provisions also include:

(i) provisions of £240 million (2024: £113 million) for interest on tax exposures;

British American Tobacco p.l.c. Form 20-F 2025<br>

(ii) a provision of £54 million recognised by BAT Brazil (2024: £77 million) in relation to litigation-related deposits as explained in note 17 and an amount of

£45 million (2024: £37 million) recognised by BAT Brazil in relation to a legal case over whether a 10% tax imposed on a tax benefit associated with

investment grants by the Rio de Janeiro State was constitutional (as explained in note 6(k)); and

(iii) a provision of £36 million (2024: £59 million) related to an excise assessment of activities undertaken in the Ploiesti factory in Romania.

**25 Trade and other payables**

---

| | | |
|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>|
| Trade payables | **1814** | 1709 |
| Master settlement agreement (U.S.) (note 6(b)) | **1338** | 1520 |
| Duty, excise and other taxes | **2985** | 2893 |
| Accrued charges and deferred income | **2644** | 2725 |
| FII GLO (note 10(b)) | **671** | 1118 |
| Social security and other taxation | **42** | 34 |
| Approved Plans in Canada payable (note 24) | **85** |  |
| Sundry payables | **233** | 236 |
|  | **9812** | 10235 |
| Current | **9328** | 9550 |
| Non-current | **484** | 685 |
|  | **9812** | 10235 |

---

***Supplier Financing Arrangements***

The Group has certain supplier financing arrangements or 'reverse factoring' arrangements in place. The principal purpose of these arrangements is to

provide the supplier with the option to access liquidity earlier through the sale of its receivables due from the Group to a bank or other financial institution

prior to their due date. Management has determined that the Group's payables to these suppliers have neither been extinguished nor have the liabilities been

significantly modified by these arrangements. The value of amounts payable, invoice due dates and other terms and conditions applicable, from the Group's

perspective, remain unaltered, with only the ultimate payee being changed. Non-cash movements were immaterial. The cash outflows in respect of these

arrangements have been recognised within operating cash flows.

---

| | | | |
|:---|:---|:---|:---|
| | | **2025**<br>**£m**<br>| 2024<br>£m<br>|
| **Supplier Financing Arrangements** | **Supplier Financing Arrangements** |  |  |
| Total | Amounts available for financing reported within trade payables | **296** | 180 |
|  | Amounts accepted by financial institutions for early financing | **287** | 179 |
|  | Amounts for which suppliers have received payment | **274** | 157 |
| **Analysed as:** |  |  |  |
| Leaf payables | Amounts available for financing reported within trade payables | **188** | 90 |
|  | Amounts accepted by financial institution for early financing | **182** | 90 |
|  | Amounts for which suppliers have received payment | **180** | 84 |
| Other payables | Amounts available for financing reported within trade payables | **108** | 90 |
|  | Amounts accepted by financial institution for early financing | **105** | 89 |
|  | Amounts for which suppliers have received payment | **94** | 73 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | **2025** | | 2024 |
| **Range of payment due dates\*** | **Range of payment due dates\*** | **Lower** | **Upper** | **Lower** | **Upper** |
| Leaf suppliers (note 1) | Trade payables part of the arrangement | **90 days** | **150 days** | 90 days | 150 days |
| Leaf suppliers (note 1) | Trade payables that are not part of the arrangement | **1 day** | **120 days** | 1 day | 120 days |
| Logistics suppliers | Trade payables part of the arrangement | **45 days** | **120 days** | 45 days | 135 days |
|  | Trade payables that are not part of the arrangement | **1 day** | **120 days** | 1 day | 180 days |
| Raw materials and consumables <br>suppliers (excl. leaf) | Trade payables part of the arrangement | **60 days** | **180 days** | 60 days | 180 days |
| Raw materials and consumables <br>suppliers (excl. leaf) | Trade payables that are not part of the arrangement | **1 day** | **240 days** | 1 day | 240 days |
| Other suppliers (note 2) | Trade payables part of the arrangement | **30 days** | **180 days** | 30 days | 180 days |
|  | Trade payables that are not part of the arrangement | **1 day** | **150 days** | 1 day | 270 days |

---

**Notes:**

\*Suppliers are subject to various payment due dates depending on the jurisdiction and standard practices. The Group's payment terms commence from the invoice date. However, for certain categories of external

suppliers, payment terms begin from the date a valid invoice is received.

1. Leaf suppliers are subject to various payment due dates depending on the jurisdiction and standard practices. In certain countries, the leaf suppliers who are not part of supplier financing arrangements are paid in

advance or on the next working day.

2. The decrease in the upper limit for trade payables that are not part of the supplier financing arrangement (other suppliers) was due to a change in IT service provider.

***Accrued charges and deferred income***

Accrued charges and deferred income include £21 million of deferred income (2024: £20 million) relating to certain customer deposits in advance of

shipments and £25 million (2024: £29 million) in respect of interest payable mainly related to tax matters.

British American Tobacco p.l.c. Form 20-F 2025<br>

***FII GLO***

FII GLO includes £336 million (2024: £813 million) relating to receipts in 2015, in respect of the Franked Investment Income Government Litigation Order

(note 10(b)).

During 2024, as a result of the Group agreeing to repay £0.8 billion to HMRC, as mentioned in note 10(b), interest accrued has been transferred from

provisions to payables. The interest accrued at 31 December 2024 was £305 million and when combined with the current year interest charge of £30 million

(refer to note 8(b)), the total interest payable recognised in relation to FII GLO is £335 million. The interest is calculated based on the UK central bank base

rate plus 2%, has been charged to net finance costs and will be payable from 2026.

In line with the repayment schedule, £222 million (2024: £479 million) of FII GLO has been recognised as a current payable.

***Approved Plans in Canada payable***

Refer to note 24 for further information on the Approved Plans in Canada.

***Sundry payables***

As explained in note 17, the Group acts as a collection agent for banks and other financial institutions in certain debtor factoring arrangements. The cash

collected in respect of these arrangements that has not yet been remitted amounts to £112 million (2024: £124 million) and is included in sundry payables.

***Other***

There is no material difference between the above amounts for trade and other payables and their fair value due to the short-term duration of the majority of

trade and other payables, as determined using discounted cash flow analysis.

Trade and other payables are predominantly denominated in the functional currencies of subsidiary undertakings with less than 7% in other currencies (2024:

less than 7% in other currencies).

Amounts payable to related parties including associated undertakings are shown in note 30.

**26 Financial instruments and risk management**

**Management of financial risks**

One of the principal responsibilities of Treasury is to manage the financial risks arising from the Group's underlying operations. Specifically,

Treasury manages, within an overall policy framework set by the Group's Main Board and Corporate Finance Committee (CFC), the Group's

exposure to funding and liquidity, interest rate, foreign exchange and counterparty risks. The Group's treasury position is monitored by the CFC which

meets regularly throughout the year and is chaired by the Chief Financial Officer. The approach is one of risk reduction within an overall framework of

delivering total shareholder return.

The Group defines capital as net debt (note 23) and equity (note 22). There are no externally imposed capital requirements for the Group. Group policies

include a set of financing principles that provide a framework within which the Group's capital base is managed and, in particular, the policies on dividends

(as a percentage of long-term sustainable earnings) and share buy-back are decided. The key objective of the financing principles is to appropriately balance

the interests of equity and debt holders in driving an efficient financing mix for the Group. The Group's average cost of debt in 2025 is 5.0% (2024: 4.9%).

The Group manages its financial risks in line with the classification of its financial assets and liabilities in the Group's balance sheet and related notes. The

Group's management of specific risks is dealt with as follows:

**Liquidity risk** 

It is the policy of the Group to maximise financial flexibility and minimise refinancing risk by issuing debt with a range of maturities, generally matching the

projected cash flows of the Group and obtaining this financing from a wide range of sources. The Group has a target average centrally managed debt maturity

of at least five years with no more than 20% of centrally managed debt maturing in a single rolling year. As at 31 December 2025, the average centrally

managed debt maturity was 9.5 years (2024: 9.5 years) and the highest proportion of centrally managed debt maturing in a single rolling year was 15.1%

(2024: 14.8%). Perpetual hybrid bonds are treated as equity (note 22(d)) and therefore not included within the debt maturity analysis.

The Group utilises cash pooling and zero balancing bank account structures in addition to intercompany loans and borrowings to mobilise cash efficiently

within the Group. The key objectives of Treasury in respect of cash and cash equivalents are to protect their principal value, to concentrate cash at the centre,

to minimise the required debt issuance and to optimise the yield earned. The amount of debt issued by the Group is determined by forecasting the net debt

requirement after the mobilisation of cash.

The Group continues to target a solid investment-grade credit rating. Moody's, S&P's and Fitch's current ratings for the Group are Baa1 (stable outlook),

BBB+ (stable outlook), BBB+ (stable outlook), respectively. The Group is confident of its continued ability to successfully access the debt capital markets

for future refinancing requirements.

As part of its short-term cash management, the Group invests in a range of cash and cash equivalents, including money market funds and deposits with

banks, which are regarded as highly liquid and are not exposed to significant changes in fair value. These are kept under continuous review as described in

the credit risk section below. At 31 December 2025, the Group had £855 million invested in money market funds (2024: £433 million) and £475 million in

deposits with banks (2024: nil).

As part of its working capital management, in certain countries, the Group has entered into factoring arrangements and supply chain financing arrangements.

These are explained in further detail in note 17 and note 25.

Subsidiary companies are funded by share capital and retained earnings, loans from the central finance companies on commercial terms, or through local

borrowings by the subsidiaries in appropriate currencies to predominantly fund short- to medium-term working capital requirements.

**Available facilities in current year:**

It is Group policy that short-term sources of funds (including drawings under both the Group US$4 billion U.S. commercial paper (U.S. CP) programme

and the Group £3 billion euro commercial paper (ECP) programme) are backed by undrawn committed lines of credit and cash. Commercial paper is

issued by B.A.T. International Finance p.l.c., B.A.T. Netherlands Finance B.V. and B.A.T Capital Corporation and guaranteed by British American

Tobacco p.l.c. At 31 December 2025, commercial paper of nil was outstanding (2024: nil). Cash flows relating to commercial paper that have maturity

periods of three months or less are presented on a net basis in the Group's cash flow statement.

At 31 December 2025, the Group had access to a £5.0 billion revolving credit facility. This facility was undrawn at 31 December 2025. In November 2025, the

Group refinanced its existing £5.2 billion facility at the reduced amount of £5.0 billion comprising (i) a£2.5 billion364-day tranche with twoone-year

extension options and a one-year term out option and (ii) a £2.5 billionfive-year tranche with twoone-year extension options.

During 2025, the Group refinanced or extended short-term bilateral facilities totalling £2.7 billion. As at 31 December 2025, nil was drawn on a short-term

basis with £2.7 billion undrawn and still available under such bilateral facilities. Cash flows relating to bilateral facilities that have maturity periods of three

months or less are presented on a net basis in the Group's cash flow statement.

In January 2025, the Group entered into a medium-term facility of £468 million (equivalent), which was fully drawn as at 31 December 2025.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Issuance, drawdowns and repayments in current year:**

–In March 2025, the Group repaid a €650 million bond at maturity and accessed the US dollar market under the SEC Shelf Programme, raising a total of

US$2.5 billion across three tranches;

–In June 2025, the Group repaid two bonds totalling an aggregate amount of US$3.0 billion at maturity;

–In August 2025, the Group repaid a £300 million bond at maturity;

–In September 2025, the Group accessed the US dollar market under the SEC Shelf Programme, raising US$750 million; and

–In October 2025, the Group issued two series of perpetual hybrid bonds, each in an aggregate principal amount of €600 million, and concurrently launched

a tender offer for its outstanding €1.0 billion3%perpetual hybrid bond (first callable in 2026). As a result, approximately 80.7% of the existing 3%

perpetual hybrid notes were repurchased at a slight premium, with the remaining 19.3% redeemed at their principal value in November 2025. Refer to note

22(d) for further details.

**Available facilities in prior year:**

At 31 December 2024, the Group had access to a £5.4 billion revolving credit facility. With effect from March 2024, the Group exercised the first of the one-

year extension options on the £2.5 billion364-day tranche of the revolving credit facility, with the second one-year extension subsequently exercised in

February 2025. Effective March 2025, therefore, the £2.5 billion364-day tranche was extended to March 2026. Additionally, £2.85 billion of the five-year

tranche remained available until March 2025, with £2.7 billion extended to March 2026 and £2.5 billion extended to March 2027.

During 2024, the Group extended short-term bilateral facilities totalling £2.4 billion. As at 31 December 2024, nil was drawn on a short-term basis with £2.4

billion undrawn and still available under such bilateral facilities. Cash flows relating to bilateral facilities that have maturity periods of three months or less are

presented on a net basis in the Group's cash flow statement.

**Issuance, drawdowns and repayments in prior year:**

–In February 2024, the Group accessed the US dollar market under the SEC Shelf Programme, raising a total of US$1.7 billion across two tranches;

–In March 2024, the Group repaid a £229 million bond at maturity;

–In April 2024, the Group accessed the Euro market under its EMTN Programme, raising a total of €900 million;

–To optimise the Group's debt capital structure using available liquidity and to reduce gross and net debt, the Group completed capped cash debt tender offers

in May 2024, targeting series of low-priced, long-dated GBP-, EUR- and USD-denominated bonds, pursuant to which the Group repurchased bonds prior to

their maturity in a principal amount of£1.8 billion (equivalent); and

–In August, September and October 2024, the Group repaid US$1.9 billion, US$1 billion and €850 million of bonds at maturity, respectively.

**Currency risk**

The Group is subject to exposure on the translation of the net assets of foreign currency subsidiaries and associates into its reporting currency, sterling. The

Group's primary balance sheet translation exposures are to the US dollar, Euro, Australian dollar, Canadian dollar, Danish krone, Indian rupee, Indonesian

rupiah, Singaporean dollar, South African rand and Swiss franc. These exposures are kept under continuous review. The Group's policy on borrowings is to

broadly match the currency of these borrowings with the currency of cash flows arising from the Group's underlying operations. Within this overall policy,

the Group aims to minimise all balance sheet translation exposure where it is practicable and cost-effective to do so through matching currency assets with

currency borrowings. The main objective of these policies is to protect shareholder value by increasing certainty and minimising volatility in earnings per

share. At 31 December 2025, the currency profile of the Group's gross debt, after taking into account derivative contracts, was 75% US dollar (2024: 74%),

14% euro (2024: 14%), 7% sterling (2024: 8%) and 4% other currencies (2024: 4%).

The Group faces currency exposures arising from the translation of profits earned in foreign currency subsidiaries and associates and joint arrangements;

these exposures are not normally hedged. Exposures also arise from:

(i) foreign currency denominated trading transactions undertaken by subsidiaries. These exposures comprise committed and highly probable forecast sales

and purchases, which are offset wherever possible. The remaining exposures are hedged within the Treasury policies and procedures with forward foreign

exchange contracts and options, which are designated as hedges of the foreign exchange risk of the identified future transactions; and

(ii) forecast dividend flows from subsidiaries to the centre. To ensure cash flow certainty, the Group enters into forward foreign exchange contracts which are

designated as net investment hedges of the foreign exchange risk arising from the investments in these subsidiaries.

IFRS 7*Financial Instruments: Disclosures*requires a sensitivity analysis that shows the impact on the income statement and on items recognised directly in

other comprehensive income of hypothetical changes of exchange rates in respect of non-functional currency financial assets and liabilities held across the

Group. All other variables are held constant although, in practice, market rates rarely change in isolation. Financial assets and liabilities held in the functional

currency of the Group's subsidiaries, as well as non-financial assets and liabilities and translation risk, are not included in the analysis. The Group considers a

10% strengthening or weakening of the functional currency against the non-functional currency of its subsidiaries as a reasonably possible change. The

impact is calculated with reference to the financial asset or liability held as at the year-end, unless this is unrepresentative of the position during the year.

A 10% strengthening of functional currencies against non-functional currencies would result in pre-tax profit being £70 million lower (2024: £94 million

lower; 2023: £61 million lower) and items recognised directly in other comprehensive income being £467 million higher (2024: £342 million higher; 2023:

£273 million higher). A 10% weakening of functional currencies against non-functional currencies would result in pre-tax profit being £85 million higher

(2024: £114 million higher; 2023: £72 million higher) and items recognised directly in other comprehensive income being £572 million lower (2024:

£418 million lower; 2023: £333 million lower).

The exchange sensitivities on items recognised directly in other comprehensive income relate to hedging of certain net asset currency positions in the Group,

as well as on cash flow hedges in respect of future transactions, but do not include sensitivities in respect of exchange on non-financial assets or liabilities.

**Interest rate risk**

The objectives of the Group's interest rate risk management policy are to lessen the impact of adverse interest rate movements on the earnings, cash flow and

economic value of the Group. Additional objectives are to minimise the cost of hedging and the associated counterparty risk.

In order to manage its interest rate risk, the Group maintains both floating rate and fixed rate debt. The Group sets targets (within overall guidelines) for the

desired ratio of floating to fixed rate debt on a net basis (at least 50% fixed on a net basis in the short- to medium-term) as a result of regular reviews of

market conditions and strategy by the Corporate Finance Committee and the board of the main central finance company. Underlying borrowings are arranged

on both a fixed rate and a floating rate basis and, where appropriate, the Group uses derivatives, primarily interest rate swaps to vary the fixed and floating

mix, or forward starting swaps to manage the refinancing risk. The interest rate profile of liquid assets included in net debt are considered to offset floating

rate debt and are taken into account in determining the net interest rate exposure. At 31 December 2025, the relevant ratio of floating to fixed rate borrowings

after the impact of derivatives was 24:76 (2024: 22:78). On a net debt basis, after offsetting liquid assets and excluding cash and other liquid assets (including

investments held at fair value) in Canada, which were subject to certain restrictions under CCAA protection in 2024 (and were subsequently paid into the

Global Settlement Trust Account as part of the Upfront Cash Contribution in the second half of 2025), the ratio of floating to fixed rate borrowings was 14:86

(2024: 13:87).

British American Tobacco p.l.c. Form 20-F 2025<br>

IFRS 7 requires a sensitivity analysis that shows the impact on the income statement and on items recognised directly in other comprehensive income of

hypothetical changes of interest rates in respect of financial assets and liabilities of the Group. All other variables are held constant although, in practice,

market rates rarely change in isolation. For the purposes of this sensitivity analysis, financial assets and liabilities with fixed interest rates are not included.

The Group considers a 100 basis point change in interest rates a reasonably possible change except where rates are less than 100 basis points. In these

instances, it is assumed that the interest rates increase by 100 basis points and decrease to zero for the purpose of performing the sensitivity analysis.

The impact is calculated with reference to the financial asset or liability held as at the year-end, unless this is unrepresentative of the position during the year.

A 100 basis point increase in interest rates would result in pre-tax profit being £27 million lower (2024: £13 million higher; 2023: £5 million lower). A 100

basis point decrease in interest rates, or less where applicable, would result in pre-tax profit being £27 million higher (2024: £13 million lower; 2023:

£5 million higher). The effect of these interest rate changes on items recognised directly in other comprehensive income is not material in either year.

Following the decision taken by global regulators in 2018 to replace Interbank Offered Rates with alternative nearly risk-free rates, such benchmark rates

were expected to be largely discontinued after 2021.

The Group is party to the ISDA fallback protocol and in January 2022, it automatically replaced the GBP LIBOR with economically equivalent interest rate

derivatives referencing SONIA on their reset date with the impacted derivatives maturing in October 2023.

**Credit risk**

The Group has no significant concentrations of customer credit risk. Subsidiaries have policies in place requiring appropriate credit checks on potential

customers before sales commence. The process for monitoring and managing credit risk once sales to customers have been made varies depending on local

practice in the countries concerned.

Certain territories have bank guarantees, other guarantees or credit insurance provided in the Group's favour in respect of Group trade receivables, the

issuance and terms of which are dependent on local practices in the countries concerned. All derivatives are subject to ISDA agreements or equivalent

documentation.

Cash deposits and other financial instruments give rise to credit risk on the amounts due from the related counterparties. Generally, the Group aims to transact

with counterparties with strong investment grade credit ratings. However, the Group recognises that due to the need to operate over a large geographic

footprint, this will not always be possible. Counterparty credit risk is managed on a global basis by limiting the aggregate amount and duration of exposure to

any one counterparty, taking into account its credit rating. The credit ratings of all counterparties are reviewed regularly.

The Group ensures that it has sufficient counterparty credit capacity of requisite quality to undertake all anticipated transactions throughout its geographic

footprint, while at the same time ensuring that there is no geographic concentration in the location of counterparties.

With the following exceptions, the maximum exposure to the credit risk of financial assets at the balance sheet date is reflected by the carrying values

included in the Group's balance sheet. The Group has entered into short-term risk participation agreements in relation to certain leaf supply arrangements and

the maximum exposure under these would be nil (2024: £52 million). In addition, the Group has entered into a guarantee arrangement to support a short-

term bank credit facility with a supply chain partner. The maximum exposure under the arrangement would be £1 million (2024: £1 million).

**Price risk**

The Group is exposed to price risk on investments held by the Group, which are included in investments held at fair value on the consolidated balance sheet,

but the quantum of such is not material.

**Hedge accounting**

In order to qualify for hedge accounting, the Group is required to document prospectively the economic relationship between the item being hedged and the

hedging instrument. The Group is also required to demonstrate an assessment of the economic relationship between the hedged item and the hedging

instrument, which shows that the hedge will be highly effective on an ongoing basis. This effectiveness testing is repeated periodically to ensure that the

hedge has remained, and is expected to remain, highly effective. The prospective effectiveness testing determines that an economic relationship between the

hedged item and the hedging instrument exists.

In accordance with the Group Treasury Policy, the exact hedge ratios and profile of a hedge relationship will depend on several factors, including the desired

degree of certainty and reduced volatility of net interest costs and market conditions, trends and expectations in the relevant markets. The sources of

ineffectiveness include spot and forward differences, impact of time value and timing differences between periods in the hedged item and hedging

instrument.

The Group's risk management strategy has been explained in further detail under the interest rate risk and currency risk sections of this note.

**Fair value estimation**

The fair values of financial assets and liabilities with maturities ofless than one year, other than derivatives, are assumed to approximate their book values.

For other financial instruments which are measured at fair value in the balance sheet, the basis forfair values is described below.

**Fair value hierarchy**

In accordance with IFRS 13 classification hierarchy, the following table presents the Group's financial assets and liabilities that are measured at fair value:

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | <br>Notes | <br>**Level 1**<br>**£m**<br>| <br>**Level 2**<br>**£m**<br>| <br>**Level 3**<br>**£m**<br>| **2025**<br>**Total**<br>**£m**<br>| <br>Level 1<br>£m<br>| <br>Level 2<br>£m<br>| <br>Level 3<br>£m<br>| 2024<br>Total<br>£m<br>|
| **Assets at fair value** |  |  |  |  |  |  |  |  |  |
| Investment held at fair value | 18 | **211** | **—** | **138** | **349** | 447 |  | 212 | 659 |
| Derivatives relating to |  |  |  |  |  |  |  |  |  |
| – interest rate swaps | 19 | **—** | **44** | **—** | **44** |  | 11 |  | 11 |
| – cross-currency swaps | 19 | **—** | **105** | **—** | **105** |  | 100 |  | 100 |
| – forward foreign currency contracts | 19 | **—** | **148** | **—** | **148** |  | 185 |  | 185 |
| **Assets at fair value** |  | **211** | **297** | **138** | **646** | 447 | 296 | 212 | 955 |
| **Liabilities at fair value** |  |  |  |  |  |  |  |  |  |
| Derivatives relating to |  |  |  |  |  |  |  |  |  |
| – interest rate swaps | 19 | **—** | **92** | **—** | **92** |  | 270 |  | 270 |
| – cross-currency swaps | 19 | **—** | **5** | **—** | **5** |  | 16 |  | 16 |
| – forward foreign currency contracts | 19 | **—** | **118** | **—** | **118** |  | 131 |  | 131 |
| – embedded derivative relating to associates | 19 | **—** | **—** | **—** | **—** |  | 7 |  | 7 |
| **Liabilities at fair value** |  | **—** | **215** | **—** | **215** |  | 424 |  | 424 |

---

Level 2 financial instruments are not traded in an active market, but the fair values are based on quoted market prices, broker/dealer quotations, or alternative

pricing sources with reasonable levels of price transparency. The Group's level 2 financial instruments include OTC derivatives.

**Netting arrangements of derivative financial instruments** 

The gross fair value of derivative financial instruments as presented in the Group balance sheet, together with the Group's rights of offset associated with

recognised financial assets and recognised financial liabilities subject to enforceable master netting arrangements and similar agreements, is summarised as

follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | <br>**Amount** <br>**presented in the** <br>**Group balance** <br>**sheet\***<br>**£m**<br>| <br>**Related** <br>**amounts not** <br>**offset in the** <br>**Group balance** <br>**sheet**<br>**£m**<br>| **2025**<br>**Net amount**<br>**£m**<br>| <br>Amount <br>presented in <br>the Group <br>balance <br>sheet\*<br>£m<br>| <br>Related amounts <br>not offset in the <br>Group <br>balance <br>sheet<br>£m<br>| 2024<br>Net amount<br>£m<br>|
| Financial assets |  |  |  |  |  |  |
| – Derivative financial instruments (note 19) | **297** | **(151)** | **146** | 296 | (184) | 112 |
| Financial liabilities |  |  |  |  |  |  |
| – Derivative financial instruments (note 19) | **(215)** | **151** | **(64)** | (424) | 184 | (240) |
|  | **82** | **—** | **82** | (128) |  | (128) |

---

**Note:**

\*No financial instruments have been offset in the Group balance sheet.

The Group is subject to master netting arrangements in force with financial counterparties with whom the Group trades derivatives.

The master netting arrangements determine the proceedings should either party default on their obligations. In case of any event ofdefault, the non-defaulting

party will calculate the sum of the replacement cost of outstanding transactions and amounts owed to it by the defaulting party. If that sum exceeds the

amounts owed to the defaulting party, the defaulting party will pay the balance to the non-defaulting party. If the sum is less than the amounts owed to the

defaulting party, the non-defaulting party will pay the balance to the defaulting party.

The hedged items by risk category are presented below:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | <br>**Carrying amount of** <br>**the hedged item**<br>**£m**<br>| <br>**Accumulated amount of** <br>**fair value hedge** <br>**adjustments on the** <br>**hedged item included in** <br>**the carrying amount of** <br>**the hedged item**<br>**£m**<br>| <br>**Line item in the** <br>**statement of financial** <br>**position where the** <br>**hedged item is** <br>**included**<br>| <br>**Changes in fair value** <br>**used for calculating** <br>**hedge ineffectiveness**<br>**£m**<br>| **2025**<br>**Cash flow hedge** <br>**reserve (gross of tax)**<br>**£m**<br>|
| **Fair value hedges** |  |  |  |  |  |
| Interest rate risk |  |  |  |  |  |
| – borrowings (liabilities) | **7844** | **44** | **Borrowings**  | **(120)** | **—** |
| **Cash flow hedges** |  |  |  |  |  |
| Interest rate risk  |  |  |  |  |  |
| – borrowings (liabilities) | **562** | **—** | **Borrowings**  | **22** | **(224)** |

---

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | <br>Carrying amount of the <br>hedged item<br>£m<br>| <br>Accumulated amount of <br>fair value hedge <br>adjustments on the hedged <br>item included in the <br>carrying amount of the <br>hedged item<br>£m<br>| <br>Line item in the <br>statement of financial <br>position where the <br>hedged item is <br>included<br>| <br>Changes in fair value <br>used for calculating <br>hedge ineffectiveness<br>£m<br>| 2024<br>Cash flow hedge <br>reserve (gross of tax)<br>£m<br>|
| **Fair value hedges** |  |  |  |  |  |
| Interest rate risk |  |  |  |  |  |
| – borrowings (liabilities) | 8750 | 215 | Borrowings | 63 |  |
| **Cash flow hedges** |  |  |  |  |  |
| Interest rate risk |  |  |  |  |  |
| – borrowings (liabilities) | 734 |  | Borrowings | (18) | (268) |

---

£383 million (2024: £363 million) of the Group's borrowings are designated as net investment hedge instruments of the Group's net investments in foreign

operations. In line with the Group's risk management policies, the net investment hedge relationships are reviewed periodically. The change in the value used

for calculating hedge ineffectiveness for hedged items designated under net investment hedge relationships is £20 million (2024: £17 million).

As at 31 December 2025, the accumulated balance of the cash flow hedge reserve was a loss of £56 million (2024: loss of £84 million) including an

accumulated loss of £224 million (2024: loss of £268 million) in relation to interest rate exposure and foreign currency exposure arising from borrowings

held by the Group, and an accumulated gain of £41 million (2024: gain of £54 million) in relation to deferred tax arising from cash flow hedges. The

remainder related to the Group's foreign currency exposure on forecasted transactions and cost of hedging (note 22(c)(ii)).

**27 Changes in the Group**

The Group acquired certain businesses and other assets as noted below. The financial impact of these transactions to the Group were immaterial individually

and in aggregate. Except as noted, there were no material differences between the fair value and book values of net assets acquired in business combinations.

**(a) Acquisitions** 

**Intellectual Property acquired from Charlie's Holdings Inc.**

In August 2025, the Group acquired certain intellectual property rights associated with PMTA applications for certain vapour products and related recipes,

formulas, and product specifications relating to synthetic nicotine e-liquids from **Charlie's Holdings Inc.** The total consideration for this transaction was

US$7.5 million (£6 million) payable on closing, and up to US$4.2 million (£3 million) in contingent consideration relating to post-acquisition earnouts.

**Beni Oral Nicotine LLC**

On 15 July 2024, the Group acquired **Beni Oral Nicotine LLC**, a U.S. company owning rights to a portfolio of tobacco-free oral use synthetic nicotine

pouches, for upfront consideration of US$30 million (£23 million), and deferred payments of contingent consideration of up to US$200 million

(£160 million) deferred for 5 years, subject to the achievement of certain milestones. The transaction has been accounted for as an asset acquisition, rather

than as a business combination, as the intellectual property acquired does not represent an integrated set of activities required by IFRS for business

combination accounting. Consequently, the best estimate of consideration payable has been allocated to the acquired assets by relative fair value.

**(b) Associated undertakings**

**(i) ITC Limited**

On 28 May 2025, the Group announced the divestment of 10% of its equity stake in **ITC Limited**(the equivalent of 2.5% of ITC's ordinary shares) to

institutional investors by way of an accelerated bookbuild process (Block Trade). The Block Trade sale generated net proceeds after transaction costs and

taxes of INR121.0 billion (£1.0 billion) which were then repatriated to the UK in a series of foreign exchange transactions in the days following the sale. The

transaction was subject to applicable tax laws in India and the UK, and proceeds were remitted net of withheld Indian Capital Gains Tax of INR7.3 billion

(£63 million). Following completion of the transaction, BAT has remained a significant shareholder of ITC, with a 22.91% shareholding, and has continued

to account for ITC as an associated undertaking using the equity method of accounting.

On 13 March 2024, the Group announced the divestment of 12% of its equity stake in ITC Limited (the equivalent of 3.5% of ITC's ordinary shares at the

time) by way of a Block Trade sale which generated net proceeds of INR166.9 billion (£1.6 billion). The proceeds were remitted net of withheld Indian

Capital Gains Tax of INR5.7 billion (£54 million).

On 24 July 2023, ITC announced a proposed demerger of its 'Hotels Business' under a scheme of arrangement by which 60% of the newly incorporated

entity would be held directly by ITC's shareholders proportionate to their shareholding in ITC. In January 2025, **ITC Hotels Limited** was listed and

commenced trading on the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE). The Group's direct stake in ITC Hotels Limited at

the time of the demerger was 15% and the investment was recognised as an investment held at fair value through other comprehensive income. In December

2025, around 59% of the Group's investment in ITC Hotels was sold to investors by way of an accelerated bookbuild process. Net proceeds from the sale

amounted to £318 million. Following completion of the sale, the Group retains a c.6.3% holding in ITC Hotels.

During 2025, ITC made several acquisitions including Ample Foods (Prasuma and Meatigo), M/s. Sresta Natural Bioproducts (24 Mantra Organic Foods),

Mother Sparsh (premium ayurvedic and natural baby care) and Century Pulp & Paper. These acquisitions did not materially impact the Group's investment

in ITC.

**(ii) Organigram Global Inc**

On 11 March 2021, the Group announced a strategic collaboration agreement with **Organigram Inc.**, a wholly owned subsidiary of publicly traded

Organigram Global Inc. (collectively, Organigram). Under the terms of the transaction, a Group subsidiary acquired a 19.9% equity stake in Organigram to

become the largest shareholder, with the ability to appoint two directors and representation on its investment committee. The Group accounts for the

investment as an associate.

In 2023, the Group announced the signing of an agreement for a further investment of CAD$125 million (£74 million) in Organigram, subject to customary

conditions, including necessary approvals by the shareholders of Organigram, which was given on 18 January 2024. On 24 January 2024, BAT made the first

tranche investment of CAD$42 million (£24 million) acquiring a further 12,893,175 common shares of Organigram at a price of CAD$3.22 per share. On 30

August 2024, BAT made the second tranche investment of CAD$42 million (£24 million) acquiring a further 4,429,740 common shares and 8,463,435

preferred shares of Organigram at a price of CAD$3.22 per share.

On 6 December 2024, Organigram announced the 100% acquisition of **Motif Labs Ltd.** and the consideration included CAD$40 million of Organigram

common shares. As a result, the Group's interest in Organigram reduced to c.30.6%.

British American Tobacco p.l.c. Form 20-F 2025<br>

On 28 February 2025, the Group made the third and final tranche investment in Organigram for CAD$42 million (£23 million), subscribing for 7,562,447

common shares and 5,330,728 preferred shares at the same price as the previous two tranches. Under the terms of the agreement, the Group's voting rights are

restricted to 30%.

**(iii) Other investments**

Since 2021, the Group has invested in **Awake Corporation**, a Canadian Chocolate company in the Wellbeing & Stimulation sector, and has participated in

several funding rounds since making its initial investment, previously accounting for the interest as an investment at fair value through Other Comprehensive

Income. In June 2025, the Group participated in another funding round, increasing the Group's stake. The Group now accounts for the investment as an

associate and currently owns 41.6%.

In April 2023, the Group announced a strategic joint venture agreement between a Group subsidiary, **AJNA BioSciences PBC,** and **Charlotte's Web**. Under

the terms of the transaction, a Group subsidiary acquired a 19.9% stake in the new entity, **DeFloria, Inc**, at a cost of £8 million (US$10 million). During

2024, the Group made a further investment of £4 million in the form of a convertible loan note.

In 2022, the Group made an investment in**Steady State LLC** (trading as Open Book Extracts) for £4 million, followed by a second investment of £4 million

in May 2023. The Group accounts for the investment as an associate. A further investment of £8 million was made in October 2023 by way of a convertible

loan note, which is currently accounted for as an investment at fair value through profit and loss.

**(c) Non-controlling interests**

During 2025, the Group acquired a further 2.60% in **JSC JV "UZBAT A.O."** at a cost of £16 million. In addition, the Group acquired 5% of British

American Tobacco Mozambique Limitada for £3 million.

During 2023, the Group acquired a further 1.31% in **Hrvatski Duhani d.d.**, at a cost of less than £1 million, following the acquisitions in 2022 (3.3% at a

cost of £1 million).

**(d) Assets held for sale and business disposals**

**(i) Brascuba Cigarrillos S.A.**

On 19 December 2025, the Group entered into an agreement to sell its 50% shareholding in **Brascuba Cigarrillos S.A.** (Brascuba) to Tabagest S.A.

(Tabagest), a company incorporated in the Republic of Cuba and an existing investor in Brascuba. As part of the agreement, outstanding trading balances

between Brascuba and the Group's Brazilian subsidiaries at the completion date will also be sold and assigned to Tabagest.

Completion of the business disposal and sale and assignment of trading balances is conditional on receipt of formal government approval and there being no

regulatory, compliance or other impediments to completion. Consideration for the shares in Brascuba held by the Group, which represents a50%

shareholding, will be US$25 million (£19 million) and in addition, US$35 million (£26 million) is expected to be received for the sale and assignment of the

intercompany balances referred to above, with both amounts settled in Euros.

Upon completion, the Group will no longer have a presence in Cuba. As a result of a sale of its shares, the Group will have neither voting rights nor the

ability or means to direct day-to-day activities, appoint management, or make business decisions, and will not have any exposure to future returns from the

business. Consequently, management have classified the entirety of the assets and liabilities of the Cuban business, excluding intercompany balances, as a

disposal group as at 31 December 2025 in accordance with IFRS 5.

At 31 December 2025, £12 million of property, plant and equipment and other non-current assets, £23 million of trade and other receivables, £208 million of

cash and cash equivalents and £13 million of other current assets principally relating to inventories, have been classified as held-for-sale and presented as

such on the balance sheet at an estimated fair value less costs to sell. In addition, £6 million of trade creditors and other liabilities have been classified as held-

for-sale at 31 December 2025. Impairment charges of £231 million and associated costs of £4 million have been recognised in the Income Statement as

adjusting items.

An estimated charge of £9 million in respect of foreign exchange previously recognised in other comprehensive income will be reclassified to the income

statement on completion of the transaction. In addition, an estimated loss of £58 millionwill be recognised on the sale and assignment of intercompany

balances on completion.

The following is a reconciliation between the total assets available for sale and their estimated recoverable value (fair value less costs to sell):

---

| | |
|:---|:---|
| | 31 December 2025 <br>£m<br>|
| Total assets held-for-sale | **256** |
| Impairment of non-current assets held-for-sale - Brascuba | **(12)** |
|  | **244** |
| Excess impairment beyond non-current assets held-for-sale - Brascuba | **(219)** |
|  | **25** |

---

**(ii) BAT Russia and BAT Belarus**

On 11 March 2022, the Group announced the intention to transfer its Russian business in full compliance with international and local laws. At that time, the

Group had two subsidiaries in Russia (BAT Russia), being**JSC British American Tobacco-SPb** and J**SC International Tobacco Marketing Services**. In

September 2023, the Group formally entered into an agreement to sell the Group's Russian and Belarusian businesses to a consortium led by then members of

BAT Russia's management team, in compliance with local and international laws. As previously announced, due to operational dependencies between BAT

Russia and the Group's subsidiary in Belarus (International Tobacco Marketing Services BY) (BAT Belarus), the Belarusian business was included in the

sale. The transaction was completed on 13 September 2023 and, since completion, the buyer consortium has wholly owned both businesses. These

businesses are now known as the ITMS Group.

In accordance with IFRS, the assets and liabilities of the subsidiaries comprising BAT Russia and BAT Belarus were classified as held-for-sale as of 31

December 2022 and presented as such on the balance sheet at an estimated recoverable value. Impairment charges of £554 million and associated costs of

£58 million were recognised in 2022 as adjusting items. Upon completion, the businesses were deconsolidated from the Group's balance sheet. Proceeds of

£425 million were received in 2023, resulting in a partial reversal of £195 million of the previously recognised impairment. In addition to this, £554 million

of foreign exchange previously recognised in the statement of other comprehensive income was reclassified to the income statement upon completion of the

transaction. This resulted in a net charge to the income statement of £353 million which included disposal-related costs of £3 million and £9 million of

foreign exchange gains on proceeds received. Management concluded that the disposal of the Russian and Belarusian businesses did not qualify to be

presented as discontinued operations.

As part of the disposal agreements, the Group held call options to reacquire the ITMS Group entities which expired on the second anniversary of the

completion of the transaction. No value was ascribed to these options as they could not be sold or transferred outside the BAT Group, and sanctions and

counter sanctions would have restricted the ability of the Group to exercise these options. In addition, no value has been ascribed to the options the Group

holds to reacquire certain trademarks and brands utilised by the ITMS businesses which only expire after 100 years. The likelihood of exercise of these

British American Tobacco p.l.c. Form 20-F 2025<br>

options within the foreseeable future is remote, and assuming the higher returns that any market participant would require given the perceived risk of

investing in Russia going forwards, and a consequent high discount rate, any value associated with exercising the options would be immaterial.

**(iii) KBio Holdings Limited**

With effect from 30 April 2025, the Group ceased operations at **KBio Holdings Limited** (a UK company) and its U.S. Subsidiary **KBio Inc** (collectively

KBio) and exited the Biotech space. Subsequently, on 3 November 2025, the Group accepted an offer of c.£4 million for KBio from the former CEO of

KBio, Barry Bratcher, working with a co-investor.

**(iv) FE 'Samfruit' JSC**

On 18 December 2025, the Group completed the sale of an associate in Uzbekistan, **FE "Samfruit" JSC**, by transfer of its 45.4% interest to the majority

shareholder in return for nominal consideration.

**28 Share-based payments**

The Group operates a number of share-based payment arrangements of which the three principal ones are:

**Performance Share Plan (PSP):**

Since 2020, performance-related conditional awards under which shares are released automatically following a three-year vesting period (five-year period for

the Executive Directors).

For awards granted in 2021 and 2020 vesting is subject to performance conditions measured over a three-year period (for all awards), based on earnings per

share (40% of grant), operating cash flow (20% of grant), total shareholder return (20% of grant) and net turnover (20% of grant). Total shareholder return

combines the share price and dividend performance of the Company by reference to a comparator group.

For 2024, 2023 and 2022 awards, the performance conditions are based on earnings per share (30% of grant), operating cash flow (20% of grant), total

shareholder return (20% of grant), net turnover (15% of grant) and New Categories revenue growth (15% of grant). Performance measurements are tested

based on performance during the three-year period beginning on 1 January in the year of grant.

For 2025 awards, the performance conditions are based on earnings per share (25% of grant), operating cash flow (20% of grant), total shareholder return

(20% of grant), return on capital employed (15% of grant), New Categories contribution margin (10% of grant) and Smokeless net turnover (10% of grant).

Participants are not entitled to dividends prior to the vesting or exercise of the awards. A cash equivalent dividend accrues through the vesting period (other

than for the Executive Directors where additional shares are delivered in lieu of cash) and is paid on vesting after three years from the grant date. Both equity

and cash-settled PSP awards are granted in March and September each year.

In the U.S., PSP awards are made over BAT American Depository Shares (ADSs).

**Restricted Share Plan (RSP):**

Introduced in 2020, conditional awards under which shares are released up to three years from date of grant, subject to a continuous employment condition

during the vesting period. Participants are not entitled to dividends prior to shares vesting. A cash equivalent dividend accrues through the vesting period and

is paid on vesting. Both equity and cash settled RSP awards are granted inMarch or September.

In the U.S., RSP awards are made over BAT American Depository Shares (ADSs).

**Deferred Share Bonus Scheme (DSBS):**

Granted in connection with annual bonuses, conditional awards under which shares are released three years from date of grant subject to a continuous

employment condition during the three-year vesting period. A cash equivalent dividend accrues through the vesting period and is paid quarterly (other than

for the Executive Directors where additional shares are delivered in lieu of cash). Both equity andcash-settled DSBS awards are granted in March each year.

The Group also has a number of other arrangements which are not material for the Group which include:

**Sharesave Scheme (SAYE)**

The UK tax advantaged scheme where options are granted in March each year by invitation at a 20% discount to the market price. Options under this equity-

settled scheme are exercisable at the end of a three-year or five-year savings contract. Participants are not entitled to dividends prior to the exercise ofthe

options. The maximum amount that can be saved by a participant in this way is £6,000 in any tax year. All UK employees at the time of invitation are eligible

to participate.

**Share Reward Scheme (SRS)**

The UK tax advantaged scheme where free shares are granted in April each year (up to an equivalent of £3,600 in any year) under the equity-settled schemes

and are subject toa three-year holding period. Participants receive dividends during the holding period which are reinvested to buy further shares. Theshares

are held in a UK-based trust and are normally capable of transfer to participants tax-free after a five-year holding period. All UK employees employed as at 1

December in the year prior to grant are eligible to participate.

**International Share Reward Scheme (ISRS)**

Conditional shares are granted in April each year (up to an equivalent of £3,600 in any year) subject to a three-year vesting period. Dividend equivalents accrue

through the vesting period and additional shares are delivered at vesting. Awards may be equity or cash-settled.

**Partnership Share Scheme**

The UK tax advantaged scheme where employees can allocate part of their pre-tax salary to purchase shares in British American Tobacco p.l.c. (maximum

£1,800 in any year). The shares purchased are held in a UK-based trust and are normally capable of transfer to participants tax-free after a five-year

holding period. All UK employees are eligible to participate.

The amounts recognised in the income statement in respect of share-based payments were as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | <br>Notes | <br>**Equity-**<br>**settled**<br>**£m**<br>| **2025**<br>**Cash-**<br>**settled**<br>**£m**<br>| <br>Equity-<br>settled<br>£m<br>| 2024<br>Cash-<br>settled<br>£m<br>| <br>Equity-<br>settled<br>£m<br>| 2023<br>Cash-<br>settled<br>£m<br>|
| PSP & RSP | 28(a) | **52** | **4** | 34 | 2 | 27 | 2 |
| DSBS | 28(b) | **24** | **3** | 30 | 2 | 38 | 1 |
| Other schemes |  | **7** | **—** | 6 |  | 6 |  |
| **Total recognised in the income statement** | 3 | **83** | **7** | 70 | 4 | 71 | 3 |

---

**Share-based payment liability**

The Group issues to certain employees cash-settled share-based payments that require the Group to pay the intrinsic value of these share-based payments to

the employee at the date of exercise. The Group has recorded liabilities in respect of vested and unvested grants at the end of 2025 and 2024:

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | | |
|:---|:---|:---|:---|
| | **2025**<br>**Unvested**<br>**£m**<br>| <br>Vested<br>£m<br>| 2024<br>Unvested<br>£m<br>|
| PSP & RSP | **4.1** | (0.9) | 2.0 |
| DSBS | **3.2** |  | 3.0 |
| **Total liability** | **7.3** | (0.9) | 5.0 |

---

**(a) PSP & RSP**

Details of the movements for the equity- and cash-settled LTI schemes during the years ended 31 December 2025 and 31 December 2024, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**Equity-settled**<br>**Number**<br>**of options** <br>**in thousands**<br>| **2025**<br>**Cash-settled**<br>**Number**<br>**of options**<br>**in thousands**<br>| <br>Equity-settled<br>Number<br>of options <br>in thousands<br>| 2024<br>Cash-settled<br>Number<br>of options<br>in thousands<br>|
| Outstanding at start of year | **9948** | **214** | 7806 | 198 |
| Granted during the period | **4225** | **104** | 5128 | 135 |
| Exercised during the period | **(1792)** | **(38)** | (1765) | (64) |
| Forfeited during the period | **(1188)** | **(36)** | (1221) | (55) |
| **Outstanding at end of year** | **11193** | **244** | 9948 | 214 |
| Exercisable at end of year | **129** | **—** | 369 | 11 |

---

As at 31 December 2025, the Group has 11,193,000 shares (2024: 9,948,000 shares) outstanding which includes 1,914,647 shares (2024:1,804,531 shares)

which are related to Reynolds American LTI awards from which nil shares (2024: nil shares) are exercisable at the end of the year.

The weighted average British American Tobacco p.l.c. share price at the date of exercise for share options exercised during the period was £32.79 (2024:

£24.56; 2023: £27.65) for equity-settled and £33.11 (2024: £24.51; 2023: £25.85) for cash-settled options.

The weighted average British American Tobacco p.l.c. share price for ADS on the New York Stock Exchange at the date of exercise for share options

exercised during the period relating to equity-settled Reynolds American LTIP awards was US$35.93 (2024: US$35.68; 2023: US$39.39).

The outstanding shares for the year ended 31 December 2025 had a weighted average remaining contractual life of 1.4 years (2024: 1.5 years; 2023: 1.5

years) for the equity-settled scheme, 1.8 years for Reynolds American equity-settled scheme (2024: 1.8 years; 2023: 1.8 years) and 1.4 years (2024: 1.6 years;

2023: 1.5 years) for the cash-settled share-based payment arrangements.

**(b) Deferred Share Bonus Scheme**

Details of the movements for the equity- and cash-settled DSBS scheme during the years ended 31 December 2025 and 31 December 2024, were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**Equity-settled**<br>**Number**<br>**of options** <br>**in thousands**<br>| **2025**<br>**Cash-settled**<br>**Number**<br>**of options**<br>**in thousands**<br>| <br>Equity-settled<br>Number<br>of options <br>in thousands<br>| 2024<br>Cash-settled<br>Number<br>of options<br>in thousands<br>|
| Outstanding at start of year | **3536** | **185** | 3851 | 261 |
| Granted during the period | **665** | **19** | 1053 | 48 |
| Exercised during the period | **(1318)** | **(84)** | (1287) | (103) |
| Forfeited during the period | **(39)** | **(7)** | (81) | (21) |
| **Outstanding at end of year** | **2844** | **113** | 3536 | 185 |
| Exercisable at end of year | **—** | **—** |  | 1 |

---

The weighted average British American Tobacco p.l.c. share price at the date of exercise for share options exercised during the financial year was £32.48

(2024: £24.57; 2023: £27.39) for equity-settled and £34.68 (2024: £24.47; 2023: £25.56) for cash-settled options.

The outstanding shares for the year ended 31 December 2025 had a weighted average remaining contractual life of 1.0 years (2024: 1.2 years; 2023: 1.3

years) for the equity-settled scheme and 0.9 years (2024: 1.2 years; 2023: 1.3 years) for the cash-settled scheme.

**Valuation assumptions** 

Assumptions used in the Black-Scholes models to determine the fair value of share options at grant date were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | <br>**PSP & RSP** | **2025**<br>**DSBS** | <br>PSP & RSP | 2024<br>DSBS |
| Expected volatility (%) | **23.0** | **23.0** | 25.0 | 25.0 |
| Average expected term to exercise (years) | **3.0** | **3.0** | 3.0 | 3.0 |
| Risk-free rate (%) | **4.2** | **4.2** | 4.0 | 4.0 |
| Expected dividend yield (%) | **7.5** | **7.5** | 9.8 | 9.8 |
| Share price at date of grant (£) | **31.79** | **31.79** | 23.84 | 23.84 |
| Fair value at grant date (£)<sup>\*</sup> | **23.44 / 25.37** | **25.37** | 15.92/17.75 | 17.75 |
| Fair value at grant date (£)<sup>\*</sup> – Management Board | **20.61 / 25.37** | **25.37** | 13.38/17.75 | 17.75 |

---

**Note:**

\*Where two figures have been quoted for the Long-Term Incentive Plan, the numbers relate to PSP and RSP awards, respectively.

British American Tobacco p.l.c. Form 20-F 2025<br>

Market condition features were incorporated into the Monte-Carlo models for the total shareholder return elements of the PSP, in determining fair value at

grant date. Assumptions used in these models were as follows:

---

| | | |
|:---|:---|:---|
| | **2025**<br>**PSP** | 2024<br>PSP |
| Average share price volatility FMCG comparator group (%) | **22** | 24 |
| Average correlation FMCG comparator group (%) | **27** | 30 |

---

Fair values determined from the Black-Scholes and Monte-Carlo models use assumptions revised at the end of each reporting period for cash-settled share-

based payment arrangements.

The expected British American Tobacco p.l.c. share price volatility was determined taking account of the return index (the share price index plus the

dividend reinvested) over a five-year period. The FMCG share price volatility and correlation was also determined over the same periods. The average

expected term to exercise used in the models has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise

restrictions and behavioural conditions, forfeiture and historical experience.

The risk-free rate has been determined from market yield curves for government gilts with outstanding terms equal to the average expected term to exercise

for each relevant grant. The expected dividend yield was determined by calculating the yield from the last two declared dividends divided by the grant share

price.

In addition to these valuation assumptions, LTI awards, excluding RSP, contain earnings per share performance conditions. As these are non-market

performance conditions they are not included in the determination of fair value of share options at the grant date, however, they are used to estimate the

number of awards expected to vest. This payout calculation is based on expectations published in analysts' forecasts.

**29 Group employees**

The average number of persons employed by the Group and its associates during the year, including Directors, was 74,583 (2024: 74,617).

---

| | | |
|:---|:---|:---|
| | **2025**<br>**Number**<br>| 2024<br>Number<br>|
| U.S. | **4,377** | 4,021 |
| AME | **32,747** | 31,090 |
| APMEA | **13,166** | 13,098 |
| Subsidiary undertakings | **50,290** | 48,209 |
| Associates | **24,293** | 26,408 |
| | **74,583** | 74,617 |

---

Included within the employee numbers for AME are certain employees in the UK in respect of central functions. Some of the costs ofthese employees are

allocated or charged to the various regions and markets in the Group.

**30 Related party disclosures**

The Group has a number of transactions and relationships with related parties, as defined in IAS 24 *Related Party Disclosures*, all ofwhichare undertaken in

the normal course of business. Transactions with CTBAT International Limited (a joint operation) are not included in these disclosures as the results are

immaterial to the Group.

Intercompany transactions and balances are eliminated on consolidation and therefore are not disclosed.

Transactions and balances with associates relate mainly to the sale and purchase of cigarettes and tobacco leaf and the provision of IT services. Included in

the purchase of goods and services below is £144 million (2024: £116 million; 2023: £145 million) relating to the purchase of leaf. Investments in associates,

in the form of convertible loan notes, are not included in the table below. The Group's share ofdividends from associates, primarily received from ITC and

included in other income in the table below, were dividends received in cash of £386 million (2024: £447 million; 2023: £559 million) as well as

£533 million from ITC received in the form of shares in ITC Hotels as explained below.

---

| | | | |
|:---|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>| 2023<br>£m<br>|
| Transactions |  |  |  |
| – gross revenue\* | **500** | 492 | 523 |
| – purchase of goods and services | **(221)** | (192) | (184) |
| – other income | **945** | 448 | 560 |
| Amounts receivable at 31 December | **92** | 39 | 48 |
| Amounts payable at 31 December | **(2)** | (12) | (4) |

---

**Note:**

\*Gross revenue is based on the invoice issued to the related party.

In addition, the following related party transactions occurred in 2025, 2024 and 2023.

**Transactions with associates**

***ITC***

Hotel demerger:

On 24 July 2023, ITC announced a proposed demerger of its 'Hotels Business' under a scheme of arrangement by which 60% of the newly incorporated

entity would be held directly by ITC's shareholders proportionate to their shareholding in ITC. In January 2025, ITC Hotels was listed and commenced

trading on the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE). The Group's direct stake in ITC Hotels was initially 15% and

has been recognised as an investment held at fair value (refer to note 18).

Partial sale of shares:

On 28 May 2025, the Group completed the divestment of 10% of its equity stake in ITC (the equivalent of 2.5% of ITC's ordinary shares) to institutional

investors by way of an accelerated bookbuild process which generated net proceeds after transaction costs and taxes of INR121.0 billion(£1.0 billion).

Following completion of the transaction, the Group has continued to account for ITC as an associated undertaking using the equity method of accounting.

British American Tobacco p.l.c. Form 20-F 2025<br>

On 13 March 2024, the Group announced the divestment of 12% of its equity stake in ITC (the equivalent of 3.5% of ITC's ordinary shares) to institutional

investors by way of an accelerated bookbuild process which generated net proceeds after transaction costs and taxes of INR166.9 billion (£1.6 billion).

Sale of brands and investment:

During 2025, the Group sold its 2% investment in Surya Nepal Pvt. Limited and brand rights in certain jurisdictions to ITC for £24 million.

***Organigram***

In 2023, the Group announced the signing of an agreement for a further investment of CAD$125 million (£74 million) in Organigram, subject to customary

conditions, including necessary approvals by the shareholders of Organigram, which was given on 18 January 2024. On 24 January 2024, the Group made the

first tranche investment of CAD$42 million (£24 million) acquiring a further 12,893,175 common shares of Organigram at a price of CAD$3.22 per share. On

30 August 2024, the Group made the second tranche investment of CAD$42 million (£24 million) acquiring a further 4,429,740 common shares and

8,463,435 preferred shares of Organigram at a price of CAD$3.22 per share. On 28 February 2025, the Group made the third and final tranche investment in

Organigram for CAD$42 million (£23 million) subscribing for 7,562,447 common shares and 5,330,728 preferred shares at the same price as the previous two

tranches. Under the terms of the agreement, the Group's voting rights are restricted to 30%.

The Group and Organigram also have a Product Development Collaboration Agreement following which a Centre of Excellence was established to focus on

developing the next generation of cannabis products with an initial focus on cannabidiol (CBD).

***Other associates***

The following transactions occurred during 2025:

–On 18 December 2025, the Group sold its 45.40% investment in FE "Samfruit" JSC for less than £1 million.

The following transaction occurred during 2024:

–On 11 September 2024, VST Industries Ltd (VST) allotted 154,419,200 equity shares of INR10 each as fully paid-up bonus equity shares. The bonus

equity shares were allotted in the proportion of 10 new fully paid-up equity shares for every one existing fully paid up equity share. The Group's interest in

VST remains unchanged at 32.16%.

The following transactions occurred during 2023, when the Group:

–acquired 19.9% of DeFloria, Inc for £8 million; and

–increased its ownership in Steady State LLC (trading as Open Book Extracts) from 5.76% to 10.8% for £4 million along with a further investment of

£8 million by way of a convertible loan note.

***Non-controlling interests***

During 2025, the Group acquired 2.60% of JSC JV "UZBAT A.O." for £16 million, increasing the ownership to 99.99%. In addition, the Group acquired 5%

of British American Tobacco Mozambique Limitada for £3 million, increasing the ownership to 100%.

During 2023, the Group acquired 1.31% in Hrvatski Duhani d.d., at a cost of less than £1 million.

***Other related party transactions***

In 2022, the Group provided a temporary liquidity facility to the main UK pension fund. The facility was undrawn as at 31 December 2023 and on 28 March

2024 the facility was cancelled.

As a result of the implementation of the EU Single-Use Plastic Directive in certain EU countries, the Group, along with other tobacco manufacturers,

established Producer Responsibility Organisations for the management of the Extended Producer Responsibility obligations relating to tobacco product butt

filter waste collection. The costs incurred by the Group in relation to this waste disposal is included in note 33.

The key management personnel of British American Tobacco consist of the members of the Board of Directors of British American Tobacco p.l.c. and the

members of the Management Board. No such person had any material interest during the year in a contract of significance (other than a service contract) with

the Company or any subsidiary company. The term key management personnel in this context includes their close family members.

---

| | | | |
|:---|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>| 2023<br>£m<br>|
| The total compensation for key management personnel, including Directors, was: |  |  |  |
| – salaries and other short-term employee benefits | **26** | 21 | 17 |
| – post-employment benefits | **1** | 1 | 1 |
| – share-based payments | **18** | 12 | 13 |
|  | **45** | 34 | 31 |

---

The following table, which is not part of IAS 24 disclosures, shows the aggregate emoluments of the Directors of the Company.

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Executive Directors | Executive Directors | Executive Directors | Chair | Chair | Chair | Non-Executive Directors | Non-Executive Directors | Non-Executive Directors | Total | Total | Total |
| | **2025**<br>**£'000**<br>| 2024<br>£'000<br>| 2023<br>£'000<br>| **2025**<br>**£'000**<br>| 2024<br>£'000<br>| 2023<br>£'000<br>| **2025**<br>**£'000**<br>| 2024<br>£'000<br>| 2023<br>£'000<br>| **2025**<br>**£'000**<br>| 2024<br>£'000<br>| 2023<br>£'000<br>|
| **Salary; fees; benefits;** <br>**incentives**<br>|  |  |  |  |  |  |  |  |  |  |  |  |
| – salary | **1935** | 1907 | 1644 |  |  |  |  |  |  | **1935** | 1907 | 1644 |
| – fees |  |  |  | **736** | 711 | 688 | **1083** | 1112 | 1059 | **1819** | 1823 | 1747 |
| – taxable benefits | **606** | 617 | 395 | **19** | 17 | 17 | **394** | 79 | 31 | **1019** | 713 | 443 |
| – short-term incentives | **3560** | 3496 | 1650 |  |  |  |  |  |  | **3560** | 3496 | 1650 |
| – long-term incentives | **1954** | 1474 | 1371 |  |  |  |  |  |  | **1954** | 1474 | 1371 |
| – buy-out | **—** | 2969 |  |  |  |  |  |  |  | **—** | 2969 |  |
| Sub-total | **8055** | 10463 | 5060 | **755** | 728 | 705 | **1477** | 1191 | 1090 | **10287** | 12382 | 6855 |
| **Pension; other emoluments** |  |  |  |  |  |  |  |  |  |  |  |  |
| – pension | **281** | 276 | 248 |  |  |  |  |  |  | **281** | 276 | 248 |
| – other emoluments | **8** | 6 | 2 |  |  |  |  |  |  | **8** | 6 | 2 |
| Sub-total | **289** | 282 | 250 |  |  |  |  |  |  | **289** | 282 | 250 |
| **Total emoluments** | **8344** | 10745 | 5310 | **755** | 728 | 705 | **1477** | 1191 | 1090 | **10576** | 12664 | 7105 |

---

**31 Contingent liabilities and financial commitments**

1. The Group is subject to contingencies pursuant to requirements that it complies with relevant laws, regulations and standards.

2. Failure to comply could result in restrictions in operations, damages, fines, increased tax, increased cost of compliance, interest charges, reputational

damage or other sanctions. These matters are inherently difficult to quantify. In cases where the Group has an obligation as a result of a past event

existing at the balance sheet date, if it is probable that an outflow of economic resources will be required to settle the obligation and if the amount of the

obligation can be reliably estimated, a provision will be recognised based on best estimates and management judgment.

3. There are, however, contingent liabilities in respect of litigation, taxes in some countries and guarantees for which no provisions have been made.

**General Litigation Overview**

4. There are a number of legal and regulatory actions, proceedings and claims against Group companies related to tobacco and New Category products

that are pending in a number of jurisdictions. These proceedings include, among other things, claims for personal injury (both individual claims and

class actions) and claims for economic loss arising from the treatment of smoking- and health-related diseases (such as medical recoupment claims

brought by local governments).

5. The plaintiffs in these cases seek recovery on a variety of legal theories, including negligence, strict liability in tort, design defect, failure to warn, fraud,

misrepresentation, violations of unfair and deceptive trade practices statutes, conspiracy, public nuisance, medical monitoring and violations of

competition and antitrust laws. The plaintiffs seek various forms of relief, including compensatory and, where available, punitive damages, treble or

multiple damages and statutory damages and penalties, creation of medical monitoring and smoking cessation funds, disgorgement of profits, attorneys'

fees, and injunctive and other equitable relief.

6. Although alleged damages often are not determinable from a complaint, and the law governing the pleading and calculation of damages varies from

jurisdiction to jurisdiction, compensatory and punitive damages have been specifically pleaded in a number of cases, sometimes in amounts ranging into

the hundreds of millions and even hundreds of billions of pounds sterling.

7. The Group has successfully managed tobacco-related litigation, and a very high percentage of the tobacco-related litigation claims brought against

Group companies, including *Engle* progeny cases, continue to be dismissed at or before trial. Based on their experience in tobacco-related litigation and

the strength of the defences available to them in such litigation, the Group's companies believe that their successful defence of tobacco-related litigation

in the past will continue in the future.

8. It is the policy of the Group to defend tobacco-related litigation claims vigorously. However, Group companies may enter into settlement discussions in

certain cases, if they believe it is in their best interests to do so. Group companies, for example, may enter into settlement discussions in particular cases,

actions taken pursuant to 'offer of judgment' statutes and Filter Cases, as defined below. An 'offer of judgment,' if rejected by the plaintiff, preserves

the Group's right to recover attorneys' fees under certain statutes in the event of a verdict favourable to the Group. Such offers are sometimes made

through court-ordered mediations. Other settlements by Group companies include the State Settlement Agreements (as defined in paragraph 39 below),

the funding by various tobacco companies of a US$5.2 billion (£3.9 billion) trust fund contemplated by the Master Settlement Agreement (as described

in paragraph 39 below) to benefit tobacco growers, the original *Broin* flight attendant case (as described in paragraph 38, note 31(o) below), and most of

the *Engle* progeny cases pending in U.S. federal court (as described in paragraph 27 et seq. below), after the initial docket of over 4,000 such cases was

reduced to approximately 400 cases. The Group believes that the circumstances surrounding these claims are readily distinguishable from the current

categories of tobacco-related litigation claims involving Group companies.

9. Although the Group intends to defend all pending cases vigorously and believes that the Group's companies have valid bases for appeals of adverse

verdicts, valid defences to all actions, and that an outflow of resources related to any individual case is not considered probable, litigation is subject to

many uncertainties, and generally, it is not possible to predict the outcome of any particular litigation pending against Group companies or to reasonably

estimate the amount or range of any possible loss. Furthermore, a number of political, legislative, regulatory and other developments relating to the

tobacco industry and cigarette smoking have received wide media attention. These developments may negatively affect the outcomes of tobacco-related

legal actions and encourage the commencement of additional similar litigation. Therefore, the Group does not provide estimates of the financial effect of

the contingent liabilities represented by such litigation, as such estimates are not practicable.

10. The following table lists the categories of the tobacco-related actions pending against Group companies as at 31 December 2025 and the increase or

decrease from the number of cases pending against Group companies as at 31 December 2024. Details of the quantum of past judgments awarded

against Group companies, the majority of which are under appeal, are also identified along with any settlements reached during the relevant period.

Given the volume and more active nature of the *Engle* progeny cases and the Filter Cases in the U.S. described below, and the fluctuation in the number

of such cases and amounts awarded from year to year, the Group presents judgment or settlement figures for these cases on a three-year basis. Where no

quantum is identified, either no judgment has been awarded against a Group company, or where a verdict has been reached no quantification of

damages has been given, or no settlement has been entered into. Further details on the judgments, damages quantification and settlements are included

British American Tobacco p.l.c. Form 20-F 2025<br>

within the case narratives below. For a discussion of the non-tobacco related litigation pending against the Group, see note 31, paragraph 76, et seq

below.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Case Type | Notes | **Case Numbers as at** <br>**31 December 2025**<br>**(note 31(a))**<br>| Case Numbers as at <br>31 December 2024<br>(note 31(a))<br>| Change in Number <br>Increase/(decrease)<br>|
| **U.S. tobacco-related actions** |  |  |  |  |
| Medical reimbursement cases | 31(b) | **1** | 2 | (1) |
| Class actions | 31(c) | **19** | 19 | No change |
| Individual smoking and health cases | 31(d) | **194** | 197 | (3) |
| *Engle* Progeny Cases | 31(e) | **33** | 91 | (58) |
| *Broin* II Cases | 31(f) | **1** | 69 | (68) |
| Filter Cases | 31(g) | **31** | 29 | 2 |
| State Settlement Agreements – Enforcement and Validity | 31(h) | **4** | 5 | (1) |
| **Non-U.S. tobacco-related actions** |  |  |  |  |
| Medical reimbursement cases  |  | **8** | 18 | (10) |
| Class actions | 31(i) | **2** | 12 | (10) |
| Individual smoking and health cases | 31(j) | **42** | 50 | (8) |

---

(Note 31(a)) This includes cases to which the Reynolds American Inc. (Reynolds American) group companies were a party at such date.

(Note 31(b)) This category of cases includes the Department of Justice action. See note 31, paragraphs 20 to 23.

(Note 31(c)) See note 31, paragraphs 24 to 36.

(Note 31(d)) See note 31, paragraphs 37 to 38.

(Note 31(e)) See note 31, paragraphs 27 to 36.

(Note 31(f)) See note 31, paragraph 38.

(Note 31(g)) See note 31, paragraph 38.

(Note 31(h)) See note 31, paragraphs 39 to 57.

(Note 31(i)) Outside the United States, there were two class actions being brought against Group companies as at 31 December 2025. These include one class

action in Canada and one class action in Venezuela. For a description of the Group companies' non-U.S. class actions, see note 31, paragraphs 71 to 74. All

outstanding tobacco litigation in Canada prior to the implementation of the Approved Plans on 29 August 2025 has been resolved and all relevant Group

companies have been provided releases in full for all historical tobacco-related claims in Canada, although the procedural dismissal of the proceedings is

ongoing. See note 31, paragraph 62.

(Note 31(j)) As at 31 December 2025, the jurisdictions with the most active individual cases against Group companies were, in descending order: Chile (20),

Brazil (seven), Italy (five), Argentina (five), Ireland (two), and Türkiye (two). There was a further jurisdiction with one active case only. For further

information, see note 31, paragraph 75.

11. Certain terms and phrases used in this note 31 may require some explanation.

a)'Judgment' or 'final judgment' refers to the final decision of the court resolving the dispute and determining the rights and obligations of the parties.

At the trial court level, for example, a final judgment generally is entered by the court after a jury verdict and after post-verdict motions have been

decided. In most cases, the losing party can appeal a verdict only after a final judgment has been entered by the trial court.

b)'Damages' refers to the amount of money sought by a plaintiff in a complaint, or awarded to a party by a jury or, in some cases, by a judge.

'Compensatory damages' are awarded to compensate the prevailing party for actual losses suffered, if liability is proved. In cases in which there is a

finding that a defendant has acted wilfully, maliciously or fraudulently, generally based on ahigher burden of proof than is required for a finding of

liability for compensatory damages, a plaintiff also may be awarded 'punitive damages'. Although damages may be awarded at the trial court stage,

a losing party may be protected from paying anydamages until all appellate avenues have been exhausted by posting a supersedeas bond. The

amount of such a bond is governed by the law of the relevant jurisdiction and generally is set at the amount of damages plus some measure of

statutory interest, modified at the discretion of the appropriate court or subject to limits set by a court or statute.

c)'Settlement' refers to certain types of cases in which cigarette manufacturers, including R. J. Reynolds Tobacco Co. (RJRT), Brown & Williamson

Tobacco Corporation (now known as Brown & Williamson Holdings, Inc.) (B&W), and Lorillard Tobacco Company (Lorillard Tobacco), have

agreed to resolve disputes with certain plaintiffs without resolving the cases through trial and/or appeal.

d) All sums set out in note 31 have been converted to GBP using the following end closing rates applicable for 31 December 2025, which differ from

the rates at the time any related provision was recorded on the balance sheet: GBP 1 to US$1.3451, GBP 1 to CAD$1.8437, GBP 1 to EUR

1.1453, GBP 1 to AOA 1,241.5242 (Angolan Kwanza), GBP 1 to ARS 1,952.4108 (Argentine Peso), GBP 1 to BDT 164.432 (Bangladeshi Taka),

GBP 1 to BRL 7.371 (Brazilian Real), GBP 1 to MZN 85.9554 (Mozambican Metical), GBP 1 to NGN 1,945.9511 (Nigerian Naira), GBP 1 to

KRW 1,937.6100 (South Korean Won), and GBP 1 to TRY 57.7887 (Turkish Lira). In addition, due to the adoption of the euro by the Croatian

State, the European Central Bank set a conversion rate of EUR to HRK on 1 January 2023 as 1 EUR to HRK7.5345.

**U.S. Tobacco Litigation**

12. Group companies, notably RJRT (individually and as successor by merger to Lorillard Tobacco) and B&W as well as other leading cigarette

manufacturers, are defendants in a number of product liability cases. In a number of these cases, the amounts of compensatory and punitive damages

sought are significant.

13. The total number of U.S. tobacco product liability cases pending as at 31 December 2025 involving RJRT, B&W, Santa Fe Natural Tobacco Company,

Inc. (SFNTC) and/or Lorillard Tobacco was approximately 297.

14. Since many of these pending cases seek unspecified damages, it is not possible to quantify the total amounts being claimed, but the aggregate amounts

involved in such litigation are significant, possibly totalling billions of US dollars. The cases fall into four broad categories: medical reimbursement

cases; class actions; individual cases; and other claims.

British American Tobacco p.l.c. Form 20-F 2025<br>

15. RJRT (individually and as successor by merger to Lorillard Tobacco), American Snuff Co., SFNTC, R.J. Reynolds Vapor Company (RJR Vapor),

Reynolds American, Lorillard Inc., other Reynolds American affiliates and indemnitees, including but not limited to B&W (collectively, the Reynolds

Defendants), believe that they have valid defences to the tobacco-related litigation claims against them, as well as valid bases for appeal of adverse

verdicts against them. The Reynolds Defendants have, through their counsel, filed pleadings and memoranda in pending tobacco-related litigation that

set forth and discuss a number of grounds and defences that they and their counsel believe have a valid basis in law and fact.

16. Scheduled trials. Trial schedules are subject to change, and many cases are dismissed before trial. In the U.S., as at 31 December 2025, there are

37 cases, exclusive of *Engle* progeny cases, scheduled for trial through 31 December 2026, for the Reynolds Defendants: 30 individual smoking and

health cases, three Filter Cases and four other cases. Thereafter, as of 15 January 2026, two additional Filter Cases were scheduled for trial through 31

December 2026, bringing the Filter Cases total to five scheduled trials through 31 December 2026. There are also approximately 11*Engle* progeny

cases against RJRT (individually and as successor to Lorillard Tobacco) and B&W scheduled for trial through 31 December 2026. It is not known how

many of these cases will actually be tried.

17. Trial results. From 1 January 2023 through 31 December 2025, 43 trials occurred in individual smoking and health, *Engle* progeny, and other cases in

which the Reynolds Defendants were defendants, including 10 trials where mistrials were declared. Verdicts in favour of the Reynolds Defendants and,

in some cases, other defendants, were returned in 17 cases, tried in Florida (eight), Oregon (one), Massachusetts (four), Illinois (one), Delaware (one)

and New Mexico (two). Verdicts in favour of the plaintiffs were returned in 16 cases, tried in Florida (six), Massachusetts (seven), New Mexico (one),

and Hawaii (two).

**(a) Medical Reimbursement Cases**

18. These civil actions seek to recover amounts spent by government entities and other third-party providers on healthcare and welfare costs claimed to

result from illnesses associated with smoking.

19. As at 31 December 2025, one U.S. medical reimbursement suit (*Crow Creek Sioux Tribe v. American Tobacco Co.*, filed in 1997) was pending against

RJRT, B&W and Lorillard Tobacco in a Native American tribal court in South Dakota. The plaintiffs seek to recover actual and punitive damages,

restitution, funding of a clinical cessation programme, funding of a corrective public education programme, and disgorgement of unjust profits from

sales to minors. There has been no recent activity in this case, and no other medical reimbursement suits are pending against these companies by county

or other political subdivisions of the states.

**U.S. Department of Justice Action**

20. On 22 September 1999, the U.S. Department of Justice (DOJ) brought an action in the U.S. District Court for the District of Columbia against various

industry members, including RJRT, B&W, Lorillard Tobacco, B.A.T Industries p.l.c. (Industries) and British American Tobacco (Investments) Limited

(Investments) (*United States v. Philip Morris USA Inc.*). The DOJ initially sought (i) recovery of certain federal funds expended in providing health care

to smokers who developed alleged smoking-related diseases and (ii) equitable relief under the civil provisions of the Racketeer Influenced and Corrupt

Organizations Act (RICO), including (a) disgorgement of roughly US$280 billion (£208.2 billion) in profits allegedly earned from a purported

racketeering 'enterprise' – a remedy the U.S. Court of Appeals for the District Court Circuit (the DC Circuit) ruled in February 2005 was not available –

and (b) certain 'corrective communications'. In September 2000, the district court dismissed Industries for lack of personal jurisdiction and dismissed

the health care cost recovery claims.

21. After a roughly nine-month non-jury trial of the remaining RICO claims, the district court issued its Final Judgment and Remedial Order (the Remedial

Order) on 17 August 2006. The Remedial Order found certain defendants, including RJRT, B&W, Lorillard Tobacco and Investments, had violated

RICO, imposed financial penalties and enjoined the defendants from committing future racketeering acts, participating in certain trade organisations,

making misrepresentations concerning smoking and health and youth marketing, and using certain brand descriptors such as 'low tar', 'light', 'ultra-

light', 'mild' and 'natural'. The Remedial Order also required the defendants to issue 'corrective communications' on five subjects, including smoking

and health and addiction, and to comply with further undertakings, including maintaining websites of historical corporate documents and disseminating

certain marketing information on a confidential basis to the government. In addition, the district court placed restrictions on the defendants' ability to

dispose of certain assets for use in the United States, unless the transferee agrees to abide by the terms of the district court's order.

22. The parties appealed and cross-appealed and, on 22 May 2009, the DC Circuit affirmed the district court's RICO liability judgment but vacated the

Remedial Order in part and remanded for further factual findings and clarification as to whether liability should be imposed against B&W, based on

changes in the nature of B&W's business operations (including the extent of B&W's control over tobacco operations). The DC Circuit also remanded

three other discrete issues relating to the injunctive remedies, including for the district court 'to reformulate' the injunction on the use of low-tar

descriptors 'to exempt foreign activities that have no substantial, direct, and foreseeable domestic effects,' and for the district court to evaluate whether

corrective communications could be required at point-of-sale displays (which requirement the DC Circuit vacated). On 28 June 2010, the U.S. Supreme

Court denied the parties' petitions for further review.

23. On 22 December 2010, the district court dismissed B&W from the litigation. Due to intervening changes in controlling law, on 28 March 2011, the

district court ruled that the Remedial Order no longer applied to Investments prospectively, and for this reason, Investments would not have to comply

with any of the remaining injunctive remedies. In November 2012, the district court entered an order setting forth the text of the corrective statements

and directed the parties to engage in discussions with the special master appointed by the district court to implement them. After various proceedings

and appeals, the district court in October 2017 ordered RJRT and the other U.S. tobacco company defendants to fund the publication of compelled

public statements in various U.S. media outlets, including in newspapers, on television, on the companies' websites, and in onserts on cigarette

packaging. The compelled public statements in newspapers and on television were completed in 2018 and in package onserts in mid-2020. The

compelled public statements now also appear on RJRT websites. The final issue regarding corrective statements was their display at retail point of sale.

On 6 December 2022, the district court entered a consent order requiring the tobacco company defendants to have the compelled public statements

posted at retail point of sale. Installation of the statements began in July 2023, and the statements remained in stores through June 2025. The now-

concluded corrective statements at retail were the last remaining remedy of the litigation to be implemented.

**(b) Class Actions**

24. As at 31 December 2025, (1) RJRT, B&W and Lorillard Tobacco were named as defendants in one action asserting claims on behalf of putative classes

of persons allegedly injured or financially impacted by their smoking, (2) one action asserting claims on behalf of putative classes of persons allegedly

injured or financially impacted by RJRT's marketing practices, and (3) as detailed in the next paragraph, RJRT, and SFNTC (a subsidiary of Reynolds

American) were named in 17 putative class actions relating to the use of the words 'natural', '100% additive-free' or 'organic' in Natural American

Spirit (NAS) brand advertising and promotional materials. If the classes are or remain certified, separate trials may be needed to assess individual

plaintiffs' damages. Among the pending class actions, 16 specified the amount of the claim in the complaint and alleged that the plaintiffs were seeking

in excess of US$5 million (£3.7 million) and one alleged that the plaintiffs were seeking less than US$75,000 (£55,760) per class member plus

unspecified punitive damages.

**No Additive/Natural/Organic Claim Cases**

25. A total of 17 pending putative class actions were filed in nine U.S. federal district courts against Reynolds American, RJRT and SFNTC, which cases

generally allege, in various combinations, violations of state deceptive and unfair trade practice statutes and claim state common law fraud, negligent

misrepresentation and unjust enrichment based on the use of descriptors such as 'natural', 'organic' and '100% additive-free' in the marketing,

labelling, advertising and promotion of SFNTC's NAS brand cigarettes. In these actions, the plaintiffs allege that the use of these terms suggests that

British American Tobacco p.l.c. Form 20-F 2025<br>

NAS brand cigarettes are less harmful than other cigarettes and, for that reason, violated state consumer protection statutes or amounted to fraud or a

negligent or intentional misrepresentation. The actions seek various categories of recovery, including economic damages, injunctive relief (including

medical monitoring and cessation programmes), interest, restitution, disgorgement, treble and punitive damages, and attorneys' fees and costs. In April

2016, the U.S. Judicial Panel on Multidistrict Litigation (JPML) consolidated the 16 cases pending at that time for pre-trial purposes before a federal

district court in New Mexico, and a later-filed case was transferred there for pre-trial purposes in 2018. On 21 December 2017, that court granted the

defendants' motion to dismiss in part, dismissing a number of claims with prejudice, and denied it in part. The district court conducted a five-day

hearing on the motion for class certification and on the motion challenging the admissibility of expert opinion testimony in December 2020. On 1

September 2023, the district court entered an order certifying a subset of the plaintiffs' proposed classes covering purchasers of NAS menthol cigarettes

in six states and declining to certify the other proposed classes. The defendants and plaintiffs both appealed from that order to the U.S. Court of Appeals

for the Tenth Circuit. Briefing is complete and oral argument occurred on 16 July 2025. A decision is pending.

**Other Putative Class Actions**

26.*Young v. American Tobacco Co.* is a putative class action filed in November 1997 in the Circuit Court, Orleans Parish, Louisiana against various U.S.

cigarette manufacturers, including RJRT, B&W, Lorillard Tobacco and certain parent companies. This action was brought on behalf of a putative class

of Louisiana residents who, though not themselves cigarette smokers, have been exposed to second-hand smoke from cigarettes manufactured by the

defendants, and who allegedly suffered injury as a result of that exposure. The action seeks an unspecified amount of compensatory and punitive

damages. In March 2016, the court entered an order staying the case, including all discovery, pending the completion of an ongoing smoking cessation

programme ordered by the court in a now-concluded Louisiana state court certified class action, *Scott v. American Tobacco Co.* The stay remains in

place*.*

***Engle*Class Action and *Engle* Progeny Cases (Florida)**

27. In July 1998, trial began in *Engle v. R. J. Reynolds Tobacco Co.,* a then-certified class action filed in Circuit Court, Miami-Dade County, Florida,

against U.S. cigarette manufacturers, including RJRT, B&W, Lorillard Tobacco and Lorillard Inc. The then-certified class consisted of Florida citizens

and residents, and their survivors, who suffered from smoking-related diseases that first manifested between 5 May 1990, and 21 November 1996, and

were caused by an addiction to cigarettes. In July 1999, the jury in this Phase I found against RJRT, B&W, Lorillard Tobacco, Lorillard Inc. and the

other defendants on common issues relating to the defendants' conduct, general causation, the addictiveness of cigarettes, and entitlement to punitive

damages.

28. In July 2000, the jury in Phase II awarded the class a total of approximately US$145 billion (approximately £107.8 billion) in punitive damages,

apportioned US$36.3 billion (£27 billion) to RJRT, US$17.6 billion (£13.1 billion) to B&W, and US$16.3 billion (£12.1 billion) to Lorillard Tobacco

and Lorillard Inc. The three class representatives in the *Engle* class action were awarded US$13 million (£9.7 million) in compensatory damages.

29. This decision was appealed and ultimately resulted in the Florida Supreme Court in December 2006 decertifying the class and allowing judgments

entered for only two of the three*Engle* class representatives to stand and setting aside the punitive damages award. The court preserved certain of the

jury's Phase I findings, including that cigarettes can cause certain diseases, nicotine is addictive, and defendants placed defective cigarettes on the

market, breached duties of care, concealed health-related information and conspired. Putative*Engle* class members were permitted to file individual

lawsuits, deemed '*Engle* progeny cases', against the *Engle* defendants, within one year of the Supreme Court's decision (subsequently extended to 11

January 2008).

30. During 2015, RJRT and Lorillard Tobacco, together with Philip Morris USA Inc. (PM USA), settled virtually all of the *Engle* progeny cases then

pending against them in federal district court. The total amount of the settlement was US$100 million (approximately £74.3 million) divided as follows:

RJRT US$42.5 million (£31.6 million); PM USA US$42.5 million (£31.6 million); and Lorillard Tobacco US$15 million (£11.2 million). The

settlement covered more than 400 federal *Engle* progeny cases but did not cover 12 federal progeny cases previously tried to verdict and then pending

on post-trial motions or appeal, and two federal progeny cases filed by different lawyers from the ones who negotiated the settlement for the plaintiffs.

31. As at 31 December 2025, there were approximately 33*Engle* progeny cases pending in which RJRT, B&W and/or Lorillard Tobacco have all been

named as defendants and served. These cases include claims by or on behalf of 50 plaintiffs. The number of pending cases fluctuates for a variety of

reasons, including voluntary and involuntary dismissals. Voluntary dismissals include cases in which a plaintiff accepts an 'offer of judgment' from

RJRT and/or RJRT's affiliates and indemnitees.

32.15 trials occurred in *Engle* progeny cases in Florida state courts against RJRT, B&W and/or Lorillard Tobacco from 1 January 2023 through 31

December 2025, and additional state court trials are scheduled for 2026.

33. The following chart identifies the number of trials in *Engle* progeny cases as at 31 December 2025 and additional information about the adverse

judgments entered:

---

| | |
|:---|:---|
| Trials/verdicts/judgments of individual Engle progeny cases from 1 January 2023 through 31 December 2025: | Trials/verdicts/judgments of individual Engle progeny cases from 1 January 2023 through 31 December 2025: |
| Total number of trials | 15 |
| Number of trials resulting in plaintiffs' verdicts | 7<sup>\*</sup> |
| Total damages awarded in final judgments against RJRT | US$58,210,000 (£43.3 million) |
| Amount of overall damages comprising 'compensatory damages' (approximately) | US$32,462,000 (of overall US$58,210,000)<br>(£24.1 million of £43.3 million) <br>|
| Amount of overall damages comprising 'punitive damages' (approximately) | US$25,748,000 (of overall US$58,210,000)<br>(£19.1 million of £43.3 million)<br>|

---

**Note:**

\*Of the 7 trials resulting in plaintiffs' verdicts 1 January 2023 to 31 December 2025 (note 31(k)):

---

| | |
|:---|:---|
| Number of adverse judgments appealed by RJRT (note 31(l)) | 4 |
| Number of adverse judgments, in which RJRT still has time to file an appeal | 0 |
| Number of adverse judgments in which an appeal was not, and can no longer be, sought | 3 |

---

(Note 31(k)) The 15 trials include two cases with two punitive damages retrials, both within the time period and both prior to the time period (*Ledo v R. J.* 

*Reynolds Tobacco Co.* and *Spurlock v. R. J. Reynolds Tobacco Co.*).

(Note 31(l)) Of the four adverse verdicts appealed by RJRT as a result of judgments arising in the period from 1 January 2023 to 31 December 2025:

a.one appeal remains undecided in the District Court of Appeal;

b.one judgment was affirmed and paid;

British American Tobacco p.l.c. Form 20-F 2025<br>

c.one case was reversed and a new trial ordered; and

d.one case was resolved after the appeal was filed.

34. By statute, Florida applies a US$200 million (£148.7 million) bond cap to all *Engle* progeny cases in the aggregate. Individual bond caps for any given

*Engle* progeny case vary depending on the number of judgments in effect at a given time. Judicial attempts by several plaintiffs in the *Engle* progeny

cases to challenge the bond cap as violating the Florida Constitution have failed. In addition, bills have been introduced in sessions of the Florida

legislature that would eliminate the *Engle* progeny bond cap, but those bills have not been enacted as at 31 December 2025.

35. In 2025, RJRT paid judgments in three*Engle* progeny cases. Those payments totalled approximately US$16 million (approximately £11.9 million) in

compensatory or punitive damages. Additional costs were paid in respect of attorneys' fees and statutory interest.

36. In addition, accruals for damages and statutory interests for two pre-trial case resolutions and the remaining amounts of one resolution bundle were

recorded in Reynolds American's consolidated balance sheet as at 31 December 2025 to the value of approximately US$4.8 million (approximately

£3.6 million).

**(c) Individual Cases**

37. As at 31 December 2025, 194 individual cases were pending in the United States against RJRT, B&W and/or Lorillard Tobacco. This category of cases

includes smoking and health cases alleging personal injuries caused by tobacco use or exposure brought by or on behalf of individual plaintiffs based on

theories of negligence, strict liability in tort, design defect, failure to warn, fraud, misrepresentation, breach of express or implied warranty, violations of

state deceptive trade practices or consumer protection statutes, and conspiracy. The plaintiffs seek to recover compensatory damages, attorneys' fees and

costs, and punitive damages. The category does not include the *Engle* progeny cases, *Broin* II cases, and Filter Cases discussed above and below. Three

of the individual cases are brought by or on behalf of an individual or his/her survivors alleging personal injury as a result of exposure to Environmental

Tobacco Smoke (ETS).

38. The following chart identifies the number of individual cases pending as at 31 December 2025 as against the number pending as at 31December 2024,

along with the number of *Engle* progeny cases, *Broin* II cases, and Filter Cases, which are discussed further below.

---

| | | | |
|:---|:---|:---|:---|
| Case Type | **U.S.** <br>**Case Numbers** <br>**31 December**<br>**2025**<br>| U.S. <br>Case Numbers <br>31 December<br>2024<br>| Change in <br>Number <br>Increase / <br>(Decrease)<br>|
| Individual Smoking and Health Cases (note 31(m)) | **194** | 197 | (3) |
| *Engle* Progeny Cases (Number of Plaintiffs) (note 31(n)) | **33(50)** | 91(125) | (58) (75)  |
| *Broin* II Cases (note 31(o)) | **1** | 69 | (68) |
| Filter Cases (note 31(p)) | **31** | 29 | 2 |

---

(Note 31(m)) Out of the 194 pending individual smoking and health cases, eight have received adverse verdicts or judgments in the court of first

instance or on appeal, and the total amount of those verdicts or judgments is approximately US$260 million (approximately £193.3 million), of which

US$87 million (£64.7 million) is the result of the jury's verdict in *Penza v. R. J. Reynolds Tobacco Co.* andUS$89 million (£66.2 million) is the result

of the jury's verdict in *Marvin Manious v. R.J. Reynolds Tobacco Co*. In addition, accruals for four individual smoking and health pre-trial case

resolutions andthree resolution bundles were recorded in Reynolds American's consolidated balance sheet as at 31 December 2025 to the value of

approximately US$6.3 million (approximately £4.7 million).

(Note 31(n)) The number of *Engle* progeny cases will fluctuate as cases are dismissed or if any of the dismissed cases are appealed. Please see earlier

table in paragraph 33.

(Note 31(o)) *Broin v. Philip Morris, Inc.* was a class action filed in Circuit Court in Miami-Dade County, Florida in 1991 and brought on behalf of flight

attendants alleged to have suffered from diseases or ailments caused by exposure to ETS in airplane cabins. In October 1997, RJRT, B&W, Lorillard

Tobacco and other cigarette manufacturer defendants settled *Broin*, agreeing to pay a total of US$300 million (£223 million) in three annual

US$100 million (£74.3 million) instalments, allocated among the companies by market share, to fund research on the early detection and cure of

diseases associated with tobacco smoke. It also required those companies to pay a total of US$49 million (£36.4 million) for the plaintiffs' counsel's

fees and expenses. RJRT's portion of these payments was approximately US$86 million (approximately £63.9 million); B&W's was approximately

US$57 million (approximately £42.4 million); and Lorillard Tobacco's was approximately US$31 million (approximately £23 million). The settlement

agreement, among other things, limits the types of claims class members may bring and eliminates claims for punitive damages. The settlement

agreement also provides that, in individual cases by class members that are referred to as *Broin* II lawsuits, the defendants will bear the burden of proof

with respect to whether ETS can cause certain specifically enumerated diseases, referred to as 'general causation'. With respect to all other liability

issues, including whether an individual plaintiff's disease was caused by his or her exposure to ETS in airplane cabins, referred to as 'specific

causation', individual plaintiffs will bear the burden of proof. On 7 September 1999, the Florida Supreme Court approved the settlement. There have

been no*Broin* II trials since 2007. There have been periodic efforts to activate cases and the Group expects this to continue over time. In 2025, RJRT

resolved the remaining *Broin* II cases due to inactivity on the files, except for one case which remains pending as of 31 December 2025.

(Note 31(p)) Includes claims brought against Lorillard Tobacco and Lorillard Inc. by individuals who seek damages resulting from their alleged

exposure to asbestos fibres that were incorporated into filter material used in one brand of cigarettes manufactured by a predecessor to Lorillard

Tobacco for a limited period of time ending more than 60 years ago. Pursuant to a 1952 agreement between P. Lorillard Company and H&V Specialties

Co., Inc. (the manufacturer of the filter material), Lorillard Tobacco is required to indemnify Hollingsworth & Vose for legal fees, expenses, judgments

and resolutions in cases and claims alleging injury from finished products sold by P. Lorillard Company that contained the filter material. As of 31

December 2025, Lorillard Tobacco and/or Lorillard Inc. was a defendant in 31 Filter Cases. Since 1 January 2023, Lorillard Tobacco and RJRT have

paid, or have reached agreement to pay, a total of approximately US$19.1 million (approximately £14.2 million) in settlements to resolve 80 Filter

Cases. In addition, an accrual for the resolution of eight of the 80 Filter Cases was recognised as at 31 December 2025 to the value of approximately

US$3.3 million (approximately £2.5 million).

**(d) State Settlement Agreements**

39. In November 1998, the major U.S. cigarette manufacturers, including RJRT, B&W and Lorillard Tobacco, entered into the Master Settlement

Agreement (MSA) with attorneys general representing 46 U.S. states, the District of Columbia and certain U.S. territories and possessions. These

cigarette manufacturers had previously settled four other cases, brought on behalf of Mississippi, Florida, Texas and Minnesota, by separate agreements

with each state (collectively and with the MSA, the 'State Settlement Agreements').

40. These State Settlement Agreements settled all health care cost recovery actions brought by, or on behalf of, the settling jurisdictions; released the

defending major U.S. cigarette manufacturers from various additional present and potential future claims; imposed future payment obligations in

perpetuity on RJRT, B&W, Lorillard Tobacco and other major U.S. cigarette manufacturers; and placed significant restrictions on their ability to market

and sell cigarettes and smokeless tobacco products. In accordance with the MSA, various tobacco companies agreed to fund a US$5.2 billion

(£3.9 billion) trust fund to be used to address the possible adverse economic impact of the MSA on tobacco growers.

British American Tobacco p.l.c. Form 20-F 2025<br>

41. RJRT and SFNTC are subject to substantial payment obligations under the State Settlement Agreements. Payments under the State Settlement

Agreements are subject to various adjustments for, among other things, the volume of cigarettes sold, relative market share, operating profit, net

operating profit (NOP) and inflation. Reynolds American's operating subsidiaries' expenses and payments under the State Settlement Agreements for

2023, 2024 and 2025 and the projected expenses and payments for 2026 and onwards are set forth below (in millions of US dollars)<sup>\*</sup>:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | 2023 | 2024 | **2025** | 2026 | 2027 and <br>thereafter<br>|
| Settlement expenses | $2516 | $2160 | **$2037** |  |  |
| Settlement cash payments | $2874 | $2535 | **$2140** |  |  |
| Projected settlement expenses |  |  |  | >$2,000 | >$2,000 |
| Projected settlement cash payments |  |  |  | >$2,000 | >$2,000 |

---

**Note:**

\* Subject to adjustments for changes in sales volume, operating profit, NOP, inflation and other factors. Payments are allocated among the settling companies on the basis of relative market share or other methods.

42. The State Settlement Agreements have materially adversely affected RJRT's shipment volumes. Reynolds American believes that these settlement

obligations may materially adversely affect the results of operations, cash flows or financial position of Reynolds American and RJRT in future periods.

The degree of the adverse impact will depend, among other things, on the rate of decline in U.S. cigarette sales in the premium and value categories,

RJRT's share of the domestic premium and value cigarette categories, and the effect of any resulting cost advantage of manufacturers not subject to the

State Settlement Agreements.

43. In addition, the MSA includes an adjustment that potentially reduces the annual payment obligations of RJRT, Lorillard Tobacco and the other

signatories to the MSA, known as 'Participating Manufacturers' (PMs). Certain requirements, collectively referred to as the 'Adjustment

Requirements', must be satisfied before the adjustment for a given year is available: (i) an independent auditor must determine that the PMs have

experienced a market share loss, beyond a triggering threshold, to those manufacturers that do not participate in the MSA (such non-participating

manufacturers being referred to as NPMs); and (ii) in a binding arbitration proceeding, a firm of independent economic consultants must find that the

disadvantages of the MSA were a significant factor contributing to the loss of market share. This finding is known as a significant factor determination,

and the adjustment is referred to as the NPM Adjustment.

44. When the Adjustment Requirements are satisfied, the MSA provides that the NPM Adjustment applies to reduce the annual payment obligation of the

PMs. However, an individual settling state may avoid its share of the NPM Adjustment if it had in place and diligently enforced during the entirety of

the relevant year a 'Qualifying Statute' that imposes escrow obligations on NPMs that are comparable to what the NPMs would have owed if they had

joined the MSA. In such event, the state's share of the NPM Adjustment is reallocated to other settling states, if any, that did not have in place and

diligently enforce a Qualifying Statute.

45. RJRT, Lorillard Tobacco and SFNTC are or were involved in the NPM Adjustment proceedings concerning the years 2003 to 2025. In 2012, RJRT,

Lorillard Tobacco, and SFNTC entered into an agreement (the Term Sheet) with certain settling states that resolved accrued and future NPM

Adjustments. Since that time, additional states have joined the NPM Adjustment Settlement Agreement (which incorporates the Term Sheet). In 2015,

an additional state, New York, entered a separate settlement of the NPM Adjustment dispute covering the years 2004 to 2014 and setting forth a

procedure for calculating RJRT payment credits based on the number of NPM packs sold on or through a Native American reservation in New York for

2015 onwards. In 2020, an additional state, Montana, entered a separate settlement of the NPM Adjustment dispute covering the years 2005 to 2030. In

2024, an additional state, Massachusetts, entered a separate settlement of the NPM Adjustment dispute covering the years 2005 to 2011. In 2025, an

additional state, Washington, entered a separate agreement of the NPM Adjustment dispute with RJRT and certain Subsequent Participating

Manufacturers (SPMs) covering the years 2005 to 2023.

46. Arbitration panels ruled in September 2021 and September 2022 that Missouri and New Mexico, respectively, had not diligently enforced their

respective Qualifying Statutes in the year 2004. In September 2021 and December 2023, arbitration panels ruled that Washington had also not diligently

enforced its Qualifying Statute in the years 2004 through 2007.

After a motion by Missouri to vacate the 2004 NPM Adjustment arbitration panel's award in November 2021, which was denied by the Missouri

Circuit Court in 2024, the 2004 NPM Adjustment award was confirmed on 14 January 2025. Missouri filed a notice of appeal, but the Missouri Court of

Appeals affirmed the order denying Missouri's motion to vacate the 2004 award in September 2025. An application for transfer to the Supreme Court of

Missouri was denied in November 2025. This matter is now closed.

On 30 August 2023, the New Mexico District Court vacated the arbitration panel's decision with respect to New Mexico and an appeal was filed by the

PMs in September 2023. On 15 January 2026, the New Mexico Court of Appeals reversed the lower court's order and reinstated the award finding New

Mexico non-diligent in 2004.

On 28 March 2024, Washington filed a motion to vacate the arbitration panel's award determining it was non-diligent in 2005, 2006, and 2007.

Following a series of filings by RJRT and the state, on 7 April 2025, the state, RJRT and certain other SPMs settled the NPM Adjustment dispute for

2005 through 2023. Pursuant to such settlement, Washington agreed to dismiss its appeal as to RJRT and those other settling SPMs. On 2 May 2025,

Washington, RJRT, and the settling SPMs filed a joint motion to dismiss the appeal, which was granted on 27 May 2025. PM USA objected to the

settlement, but the independent auditor implemented the settlement in April 2025. On 21 April 2025, PM USA served on RJRT an arbitration demand

seeking to arbitrate the validity of the settlement. On 4 June 2025, RJRT and the settling SPMs filed a complaint in Washington's MSA court requesting

a declaration that PM USA's arbitration demand is invalid and fails to raise an arbitrable dispute. On 24 June 2025, PM USA filed a motion to compel

arbitration and to dismiss the complaint. The motion to compel arbitration was granted in September 2025 against RJRT's filed opposition. The case has

been stayed pending arbitration. On 12 September 2025, RJRT and the SPMs served on PM USA an arbitration demand alleging PM USA had

breached the 2017 NPM Adjustment Settlement Agreement by interfering with RJRT's and the SPMs' separate resolution of their individual NPM

Adjustment disputes with Washington, RJRT and PM USA filed arbitration demands, which were later consolidated, with Judicial Arbitration and

Mediation Services, Inc. (JAMS) on 6 October 2025 and 7 October 2025, respectively. The parties are in the process of selecting arbitrators. On 30

October 2025, Washington and PM USA settled the NPM Adjustment dispute for 2005 through 2015. NPM proceedings are ongoing and could result

in further reductions of the companies' MSA-related payments.

47. On 22 March 2024, New Mexico filed a complaint with the New Mexico District Court seeking a declaratory judgment interpreting the term "diligently

enforce" as used in the MSA. RJRT filed a motion to compel arbitration and to dismiss the complaint on 19 April 2024. On 23 September 2024, the

New Mexico District Court granted RJRT's motion to compel arbitration and dismissed the complaint from the bench. The New Mexico District Court

issued an order to that effect on 13 November 2024. New Mexico filed a notice of appeal on 9 December 2024. Briefing is complete and the appeal is

pending.

48. On 23 February 2024, PM USA sent New Mexico a 30-day notice of intent to initiate a proceeding against New Mexico, giving notice that it intends to

bring an action in the New Mexico District Court seeking an enforcement order compelling New Mexico to participate in a proceeding before a firm to

British American Tobacco p.l.c. Form 20-F 2025<br>

resolve a dispute over whether New Mexico's statutes requiring escrow deposits on certain cigarettes sold in New Mexico constitute a Qualifying

Statute pursuant to the MSA.

49. Currently there are four proceedings in four jurisdictions (Delaware (see paragraph 53), New Mexico (see paragraph 55), Texas (see paragraph 56) and

Minnesota (see paragraph 57)) under or in connection with the State Settlement Agreements (other than the ones described above).

50. In January 2017, the State of Florida sought an order declaring that RJRT and Imperial Tobacco Group, PLC (ITG), a wholly owned subsidiary of

Imperial Brands plc that was later joined into the enforcement action, are in breach of the Florida State Settlement Agreement and are required, jointly

and severally, to pay approximately US$45 million (approximately £33.5 million) and make annual payments to the state under the Florida State

Settlement Agreement with respect to the four brands (Winston, Salem, Kool and Maverick) that were sold to ITG in the divestiture of certain assets, on

12 June 2015, by subsidiaries or affiliates of Reynolds American and Lorillard (the Divestiture), referred to as the 'Acquired Brands'. The motion also

claimed future annual losses of approximately US$30 million per year (approximately £22.3 million) absent the court's enforcement of the Florida State

Settlement Agreement.

51. On 27 December 2017, the court entered an order holding RJRT (not ITG) liable for annual settlement payments for the Acquired Brands, finding that

ITG did not assume liability for annual settlement payments related to the Acquired Brands under the terms of the asset purchase agreement relating to

the Divestiture. On 15 August 2018, the court entered a final judgment in the action (the Final Judgment). On 29 July 2020, Florida's Fourth District

Court of Appeal affirmed the Final Judgment on appeal. RJRT's motion for rehearing or certification and its motion for review were denied by the

Florida Supreme Court in September 2020 and December 2020, respectively. On 5 October 2020, RJRT satisfied the Final Judgment (approximately

US$193 million (approximately £143.4 million)) and paid approximately US$3.2 million (approximately £2.4 million) of Florida's attorneys' fees. As

explained below, RJRT has secured an order in the Delaware action requiring ITG to indemnify it for amounts paid under the Final Judgment.

52. In February 2017, ITG filed an action in the Delaware Court of Chancery seeking declaratory relief against Reynolds American and RJRT on various

matters related to its rights and obligations under the asset purchase agreement (and related documents) relating to the Divestiture with respect to the

subject of the Florida enforcement litigation described above. Reynolds American and RJRT filed counterclaims on the same issues. Following

summary judgments in September 2022 and October 2023, the court entered an implementing order on 15 November 2023 providing that ITG shall

indemnify Reynolds American and RJRT for every settlement payment that they make in the future to Florida under the Final Judgment in the Florida

litigation, based on ITG's sales of Acquired Brands cigarettes, with the question of whether the indemnification obligation should be reduced to account

for how NOP adjustment (NOP Adjustment) payments would have been allocated if ITG had joined the Florida State Settlement Agreementto be

deferred to trial. Following a trial in 2024, the judge entered an order in March 2025 and a final order and judgment in April 2025 awarding Reynolds

American and RJRT approximately US$370 million (£275.1 million) against ITG for prior settlement payments with interest. ITG appealed this

decision. On 15 December 2025, the Delaware Supreme Court affirmed the judgment of the Court of Chancery. On 31 December 2025, the Delaware

Supreme Court issued a mandate closing the case. Effective 30 January 2026, ITG, Reynolds American and RJRT entered into a confidential Delaware

Judgment Settlement Agreement. PM USA previously moved to intervene in the case to assert that Reynolds American, RJRT and/or ITG were

unjustly enriched by Florida settlement payments borne by PM USA. The court denied PM USA's motion to intervene as untimely. PM USA had

appealed but then voluntarily dismissed its appeal. This matter is now closed.

53. On 4 February 2026, PM USA brought an action against Reynolds American and RJRT in the Court of Chancery of the State of Delaware alleging

unjust enrichment arising from the Delaware rulings in favour of the companies against ITG. PM USA claims Reynolds avoided certain settlement

payments in Florida because ITG did not join the Florida settlement. PM USA claims these savings were at its expense and seeks restitution and

damages for the alleged unjust enrichment in an amount to be determined by the court, interest, and attorneys' fees and costs.

54. On 3 December 2019, the State of Mississippi filed a notice of violation and motion to enforce the Mississippi State Settlement Agreement in the

Chancery Court of Jackson County, Mississippi against RJRT, PM USA and ITG, seeking a declaration that the base year 1997 NOP to be used in

calculating the NOP Adjustment was not affected by the change in the federal corporate tax rate in 2018 from 35% to 21% (the Tax Rate Change), and

an order requiring RJRT to pay the approximately US$5 million (approximately £3.7 million) difference in its 2018 payment because of this issue.

Determination of the issue of the Tax Rate Change may affect RJRT's annual payment thereafter. On 10 June 2022, the Mississippi Chancery Court

granted the state's motion to enforce, ruling for the state and denying RJRT's appeal. Following a hearing on damages, including interest and attorneys'

fees, on 13 February 2024, the Chancery Court awarded the state attorneys' fees of approximately US$1.3 million (approximately £1 million).

On 7 May 2024, the court entered a final judgment awarding the state compensatory damages of approximately US$23.5 million (approximately £17.5

million) plus 8% prejudgment interest, and approximately US$1 million (approximately £743,467) in additional attorneys' fees against RJRT. In June

2024, the state and RJRT filed notices of appeal. PM USA also filed an appeal, which was dismissed (along with the state's appeal as it related to PM

USA) following a settlement between those parties in October 2024. On 19 August 2025, RJRT and the state entered into a settlement. On 27 August

2025, the Mississippi Supreme Court dismissed RJRT's appeal and the State's appeal. This matter is now closed.

55. On 29 November 2022, the State of New Mexico filed a complaint or, in the alternative, a motion to enforce its uniform consent decree entered in

connection with the MSA against the PMs asserting, among other things, claims for breach of contract and violations of New Mexico's Unfair Practices

Act. New Mexico seeks compensatory damages in an amount to be determined at trial, as well as treble damages, punitive damages, and declaratory and

injunctive relief. On 10 February 2023, the PMs filed a motion to compel arbitration or, in the alternative, motion to dismiss New Mexico's complaint

and alternative motion to enforce. On 29 December 2023, the New Mexico District Court granted the PMs' motion to compel arbitration. On 29 January

2024, New Mexico filed a notice of appeal. Briefing is complete and the appeal is pending. On 29 March 2024, RJRT filed a motion to dismiss New

Mexico's appeal. RJRT's motion to dismiss is held in abeyance pending submission of the appeal to a panel of judges.

56. On 2 March 2023, the State of Texas issued a demand letter to RJRT, PM USA and ITG, pursuant to the Texas State Settlement Agreement, for

underpaid sums owed to Texas for the years 2019 through 2022 and a change in the calculation going forward, asserting that RJRT, PM USA and ITG

issued payments to Texas that were based on unauthorized changes to the base year 1997 NOP by incorporating into their calculations the Tax Rate

Change. The parties filed cross-motions and, on 15 March 2024, the court granted the state's cross-motion to enforce and denied the motion to enforce

filed by PM USA and RJRT. On 28 March 2025, the court ordered the parties to comply with calculations requiring RJRT to pay to Texas

approximately US$104 million (£77.3 million), plus pre-judgment interest from 30 April 2019 through 14 March 2024, and post-judgment interest from

15 March 2024 until payment. On 25 April 2025, each of RJRT and PM USA filed a notice of appeal with the Fifth Circuit Court of Appeals. Briefing

is complete and the appeal is pending.

57. On 2 July 2024, the State of Minnesota filed a motion to enforce the Minnesota State Settlement Agreement on the basis that the NOP Adjustment due

to Minnesota for the years 2018 and after be based on the value fixed in the Mississippi decision that found the base year 1997 NOP to be used in

calculating the NOP Adjustment was not affected by the Tax Rate Change, which motion was granted on 9 December 2024. The Minnesota court

requested the parties to meet and confer on the issue of damages, interest, and civil penalties including attorneys' fees and directed that, within 30 days,

the independent accounting firm retained by the parties to calculate the settlement payments, PricewaterhouseCoopers LLC, shall calculate all future

Minnesota NOP Adjustments using US$3,115.1 million (approximately £2,316 million) as the base NOP. After the parties informed the court that they

had not resolved all remaining issues within the prescribed time frame, the court directed the parties to mediation of the remaining issues. RJRT and PM

USA mediated on 10 April 2025 but did not reach a resolution of their dispute over allocation of the damages between them for 2018 and 2019. RJRT

and PM USA each filed motions regarding the allocation of damages on 17 June 2025. After a hearing in October 2025, the court granted PM USA's

motion related to the allocation of payments and ordered that ITG Brands, LLC be included in the recalculation of payments from 2018 going forward.

British American Tobacco p.l.c. Form 20-F 2025<br>

On 5 January 2026, the district court issued the judgment against RJRT and PM USA. On 6 January 2026, the district court entered a Notice of Entry of

Judgment against RJRT for US$71.1 million (approximately£52.9 million). RJRT intends to appeal.

**Tobacco-Related Litigation Outside the U.S.**

58. As at 31 December 2025:

a) medical reimbursement actions are being brought in Angola, Brazil, Nigeria and South Korea;

b) class actions are being brought in Canada and Venezuela; and

c) active tobacco product liability claims against the Group's companies existed in 11 markets outside the U.S. The only markets with five or more

claims were Argentina, Brazil, Chile and Italy.

**(a) Medical reimbursement cases** 

**Angola**

59. In November 2016, BAT Angola affiliate Sociedade Unificada de Tabacos de Angola (SUT) was served with a collective action filed in the Provincial

Court of Luanda, 2nd Civil Section, by the consumer association Associação Angolana dos Direitos do Consumidor (AADIC). The lawsuit seeks

damages of AOA800 million (approximately£644,369) allegedly incurred by the Angolan Instituto Nacional do Controlo do Cancro (INCC) for the

cost of treating tobacco-related disease, non-material damages allegedly suffered by certain individual smokers on the rolls of INCC, and the mandating

of certain cigarette package warnings. SUT filed its answer to the claim on 5 December 2016. The case remains pending.

**Canada**

60. In Canada, following the implementation of legislation enabling provincial governments to recover healthcare costs directly from tobacco

manufacturers, a separate action for recovery of healthcare costs arising from the treatment of smoking and health-related diseases was commenced in

each of the ten provinces (the Provincial Actions). Damages were not quantified by all ten provinces; however, the industry-wide damages claimed in

certain of the Provincial Actions ranged between CAD$10 billion (£5.4 billion) and CAD$118 billion (£64 billion), and the province of Ontario

delivered expert reports quantifying its damages in the range of CAD$280 billion (£151.9 billion) and CAD$630 billion (£341.7 billion) in

2016/2017 dollars plus an additional CAD$9.4 billion (£5.1 billion) and CAD$10.9 billion (£5.9 billion) in damages in respect of environmental

tobacco smoke, with the province's amended statement of claim seeking damages of CAD$330 billion (£179 billion). In addition to the actions

commenced by the provincial governments, numerous class actions against Group companies were launched (see paragraphs 71 to 73).

61. Following a judgment by the Québec Court of Appeal in March 2019 in the Québec class actions, JTI-MacDonald Corp ((JTIM) a subsidiary of Japan

Tobacco International (JTI) and a co-defendant in the cases), Imperial Tobacco Canada Limited (Imperial) and Imperial Tobacco Company Limited

(together with Imperial, ITCAN) and Rothmans, Benson & Hedges Inc. ((RBH) a subsidiary of Philip Morris International Inc. and a co-defendant in

the cases) each filed for creditor protection under the Companies' Creditors Arrangement Act (CCAA), and court ordered stays (the Stays) of all

tobacco litigation in Canada against all defendants (including all Group companies that were defendants in the Canadian tobacco litigation, including (i)

ITCAN, British American Tobacco p.l.c., British American Tobacco (Investments) Limited, B.A.T. Industries p.l.c. and Carreras Rothmans Limited)

and (ii) R.J. Reynolds Tobacco Company (RJRT) and R.J. Reynolds Tobacco International Inc. (which RJR Companies, pursuant to the terms of the

1999 sale of RJRT's international tobacco business to JTI, benefit from an indemnification by JTI for all liabilities and obligations (including litigation

costs) arising in respect of the Canadian recoupment actions and on behalf of which RJR Companies, subject to a reservation of rights, JTI had assumed

the defence in these actions).

62. Following (i) the filing of proposed plans of compromise (collectively, the Proposed Plans) by the court-appointed mediators and monitors for each of

ITCAN, RBH and JTIM in the Ontario Superior Court of Justice (the Court) in October 2024, (ii) subsequent amendments, (iii) creditor approval in

December 2024 and (iv) a sanction hearing in January 2025, the Court ultimately issued an order on 6 March 2025 finding each of the Proposed Plans

fair, reasonable, and in the public interest, and sanctioned the Proposed Plans (hereinafter referred to as the Approved Plans). The Approved Plans were

implemented on 29 August 2025, as a result of which all outstanding tobacco litigation in Canada against the defendants has been resolved and all

relevant Group companies have been provided releases in full for all historical tobacco-related claims in Canada.

63. On implementation, each of ITCAN, RBH and JTIM was required to pay into the settlement fund cash and cash equivalents on hand (including

investments held at fair value) (other than, in the case of RBH, a holdback amount) plus certain court deposits. If any cash tax refunds are later received

on account of these upfront payments, 85% of these refund amounts will also be payable towards the settlement. Going forward, each of ITCAN, RBH

and JTIM will also be required to make annual payments based on a percentage (initially 85%, reducing over time to 70%) of net income after tax based

on amounts generated from all sources, excluding New Categories, until they settle the liability (CAD$32.5 billion (approximately £17.6 billion)) in

full. The performance of ITCAN's New Categories (including Vapour products and nicotine pouches) is not included in the basis for calculating the

annual payments. The Group has recognised a provision to reflect management's best estimate of ITCAN's total payment obligations under the

Approved Plans (see note 24).

**Nigeria**

64. British American Tobacco (Nigeria) Limited (BAT Nigeria), the Company and Investments have been named as defendants in a medical

reimbursement action by the federal government of Nigeria, filed on 6 November 2007 in the Federal High Court, and in similar actions filed by the

Nigerian states of Kano (9 May 2007), Oyo (30 May 2007), Lagos (13 March 2008), Ogun (26 February 2008), and Gombe (17 October 2008)

commenced in their respective High Courts. In the five cases that remain active, the plaintiffs seek a total of approximately NGN10.6 trillion

(approximately £5.4 billion) in damages, including special, anticipatory and punitive damages, restitution and disgorgement of profits, as well as

declaratory and injunctive relief.

65. The suits claim that the state and federal government plaintiffs incurred costs related to the treatment of smoking-related illnesses resulting from

allegedly tortious conduct by the defendants in the manufacture, marketing, and sale of tobacco products in Nigeria, and assert that the plaintiffs are

entitled to reimbursement for such costs. The plaintiffs assert causes of action for negligence, negligent design, fraud and deceit, fraudulent

concealment, breach of express and implied warranty, public nuisance, conspiracy, strict liability, indemnity, restitution, unjust enrichment, voluntary

assumption of a special undertaking, and performance of another's duty to the public.

66. The Company and Investments have made a number of challenges to the jurisdiction of the Nigerian courts. Such challenges are still pending (on

appeal) against the federal government and the states of Kano, Gombe and Ogun. These cases are stayed or adjourned pending the final outcome of

these jurisdictional challenges. In the Lagos action, the Nigerian Supreme Court denied the Company's appeal on 25 November 2025 and the case will

be remanded to the trial court. Investment's appeal in the Lagos action remains pending. In the state of Oyo, on 13 November 2015, and 24 February

2017, respectively, the Company's and Investments' jurisdictional challenges were successful in the Court of Appeal and the issuance of the writ of

summons was set aside.

**South Korea**

67. In April 2014, Korea's National Health Insurance Service (NHIS) filed a healthcare recoupment action against KT&G (a Korean tobacco company),

PM Korea and BAT Korea (including BAT Korea Manufacturing). The NHIS is seeking damages of roughly KRW54 billion (approximately

£27.9 million exclusive of interest) in respect of health care costs allegedly incurred by the NHIS treating patients with lung (small cell and squamous

cell) and laryngeal (squamous cell) cancer between 2003 and 2012. Court hearings in the case, which constitute the trial, commenced inSeptember

British American Tobacco p.l.c. Form 20-F 2025<br>

2014. On 20 November 2020, the court issued ajudgment in favour of the defendants and dismissing all of the plaintiff's claims. The NHIS filed an

appeal of the judgment on 11 December 2020. Appellate proceedings commenced inJune 2021. On 15 January 2026, the Seoul High Court dismissed

the NHIS's appeal and fully upheld the first instance judgment, dismissing all claims against all defendants. The NHIS has indicated that it intends to

appeal to the Korean Supreme Court. On 3 February 2026, the NHIS filed a notice of appeal of the Seoul High Court's ruling to the Supreme Court of

Korea.

**Brazil**

68. On 21 May 2019, the Federal Attorney's Office (AGU) in Brazil filed an action in the Federal Court of Rio Grande do Sul against the Company, the

BAT Group's Brazilian subsidiary Souza Cruz LTDA (Souza Cruz), Philip Morris International, Philip Morris Brazil Indústria e Comércio LTDA and

Philip Morris Brasil S/A (collectively, PMB), asserting claims for medical reimbursement for funds allegedly expended by the federal government as

public health care expenses to treat 26 tobacco-related diseases over the last five years from the filing date and that will be expended in perpetuity

during future years, including diseases allegedly caused both by cigarette smoking and exposure to ETS. The action includes a claim for moral damages

allegedly suffered by Brazilian society to be paid into a public welfare fund. The action is for an unspecified amount of monetary compensation, as

the AGU seeks a bifurcated action in which liability would be determined in the first phase followed by an evidentiary phase to ascertain damages.

69. Following proceedings in 2019 and 2020 in both the trial and appellate courts challenging the issue of service on the Company, the court ruled that

service of the Company via its Brazilian subsidiary Souza Cruz constituted proper service, and ordered that defences be filed. The Company and Souza

Cruz (which was served with the complaint on 7 August 2019) filed their respective defences on 12 May 2020.

70. The court permitted the Associação de Controle do Tabagismo, Promoção da Saúde (ACT), a Brazilian non-governmental organisation, and the

Fundação Oswaldo Cruz (FIOCRUZ), a research and development arm of the Brazilian Ministry of Health, to intervene in the case as amicus curiae (on

13 May 2022 and 24 March 2025, respectively), over the objections of Souza Cruz, PMB and the Company, limiting ACT and FIOCRUZ's rights as

amicus curiae to presenting technical and scientific opinions and participating in court hearings. The AGU submitted its reply to the defences on 5 July

2022, and Souza Cruz, the Company and PMB submitted responses to the AGU's reply on 26 August 2022. On 30 May 2025, FIOCRUZ submitted its

statement as amicus curiae. On 19 May 2020, notice was sent to the Public Prosecutor's Office (MPF) regarding the AGU's request that the MPF join

the action as a plaintiff. The MPF, via its response filed on 10 July 2020, declined to join the action as party, but will act as an 'inspector of the law',

which enables MPF to express its opinion on case matters. On 10 October 2022, the MPF submitted an opinion on preliminary issues and evidence,

which called for rejection of the defendants' preliminary defences and the majority of the evidence requested by AGU and defendants. The defendants,

including the Company and Souza Cruz have filed responses to the MPF's opinion.

On 24 March 2025, the court issued a preliminary decision on preliminary matters and evidence. The analysis of all preliminary matters raised by the

defendants was postponed to the final ruling, all the evidence requested by the parties was rejected. Souza Cruz and PMB filed, on 9 April 2025 and 10

April 2025, respectively, motions for clarification of or adjustment to the preliminary decision, to which the AGU responded on 30 May 2025. The

motions remain pending.

**(b) Class Actions**

**Canada**

71. As described in paragraph 62, all Canadian tobacco litigation has been resolved and all relevant Group companies have been provided release in full for

all tobacco-related claims in Canada following implementation of the Approved Plans.

72. This includes resolution of the 11 class actions brought in Canada against Group companies for a variety of claims, including deceptive marketing of

light and mild cigarettes, failure to pay the agreed domestic contract price to tobacco growers used in products manufactured for the export market and

which were ultimately smuggled back into Canada, and smoking and health-related claims, including claims based on fraud, fraudulent concealment,

breach of warranty of merchantability, and of fitness for a particular purpose, failure to warn, design defects, negligence, breach of a 'special duty' to

children and adolescents, conspiracy, concert of action, unjust enrichment, market share liability and violations of various trade practices and

competition statutes. Damages sought were not quantified in most cases; however in respect of the two class actions in Québec, the amount of the

judgment was CAD$13.7 billion (£7.4 billion), of which CAD$9.2 billion (£5 billion) was ITCAN's share and the amount sought in the tobacco

growers class action was CAD$50 million (£27.1 million).

73. A proposed national class action was filed in the British Columbia Supreme Court by Danver Bauman (via his litigation guardian) on 21 December

2023 against Imperial Tobacco Company Ltd., Imperial, and Nicoventures Trading Limited (Nicoventures) alleging numerous statutory and common

law causes of action in connection with the design, marketing and sale of Zonnic. The action was issued in violation of the Stays, and has not been

validly served. Thereafter, on 26 September 2025, the plaintiffs' firm that had attempted to commence the *Bauman* action issued a nearly duplicative

class proceeding with a new representative plaintiff, Daniel Maynard. The *Maynard* action seeks certification of a national class of Canadian consumers

who purchased Zonnic for "primarily personal, family or household use", and alleges that the defendants engaged in "deceptive and misleading design,

regulatory approval, labelling, advertising, marketing, promotion, distribution, and sale" of its Zonnic products. The plaintiffs seek an unspecified

quantum of damages for unjust enrichment, common law breaches (including failure to warn and negligence), and breaches of various provincial and

federal statutes related to advertising and promotion, as well as punitive damages. The supporting certification record has not yet been delivered by the

plaintiffs, such that the action has not progressed.

**Venezuela**

74. In April 2008, the Venezuelan Federation of Associations of Users and Consumers (FEVACU) and Wolfang Cardozo Espinel and Giorgio Di Muro Di

Nunno, acting as individuals, filed a class action against the Venezuelan government. The class action seeks regulatory controls on tobacco and

recovery of medical expenses for future expenses of treating smoking-related illnesses in Venezuela. Both C.A Cigarrera Bigott Sucs. (Cigarrera

Bigott), a Group subsidiary, and ASUELECTRIC, represented by its president Giorgio Di Muro Di Nunno (who had previously filed as an individual),

have been admitted as third parties by the Constitutional Chamber of the Supreme Court of Justice. A hearing date for the action is yet to be scheduled.

On 25 April 2017 and on 23 January 2018, Cigarrera Bigott requested the court to declare the lapsing of the class action due to no proceedings taking

place in the case in over a year. A ruling on the matter is yet to be issued.

**(c) Individual Tobacco-Related Personal Injury Claims**

75. As at 31 December 2025, the jurisdictions with the most active individual cases against Group companies were, in descending order: Chile (20), Brazil

(seven), Italy (five), Argentina (five), Ireland (two) and Türkiye (two). There was a further jurisdiction with one active case only. Out of these 42 active

individual cases, as at 31 December 2025 there were two cases in Argentina that have resulted in pending unfavourable judgments. In one case,

damages were awarded totalling ARS685,976 (approximately £351) in compensatory damages and ARS2,500,000 (approximately £1,280) in punitive

damages, plus post-judgment interest. This judgment was reversed via an appellate court ruling issued 19 September 2023. The plaintiff's petition for

leave to appeal to the Argentina Supreme Court was denied on 29 November 2023. The plaintiff filed an extraordinary appeal to the Argentina Supreme

Court on 7 December 2023, which appeal remains pending. In the other case, compensatory damages were awarded totalling ARS2,850,000

(approximately £1,460), with post-judgment interest totalling approximately ARS338,089,193 (approximately £173,165). This judgment is currently on

appeal. In addition, on 25 August 2023, an adverse written judgment was served in an individual action in Türkiye awarding TRY10,000

(approximately £173) in compensatory damages against British American Tobacco Tütün Mam. San. ve Tic. A.Ş (BAT Türkiye) and Philip Morris

Sabancı Pazarlama ve Satış A.Ş, now known as Philip Morris Pazarlama ve Satış A.Ş (PMP). The judgment was reversed against BAT Türkiye via an

appellate court ruling served on 7 January 2025, on the basis that BAT Türkiye does not have standing to be sued. The judgment was upheld against

British American Tobacco p.l.c. Form 20-F 2025<br>

PMP, with the amount of the award increased to TRY500,000 (approximately £8,652). PMP has appealed the judgment against it, and the plaintiff has

appealed both rulings. The appeals remain pending.

**Croatian Distributor Dispute**

76. BAT Hrvatska d.o.o u likvidaciji and British American Tobacco Investments (Central and Eastern Europe) Limited are named as defendants in a claim

by Mr Perica received on 22 August 2017 and brought before the commercial court of Zagreb, Croatia. Mr Perica seeks damages of HRK408 million

(€54.1 million / £47.2 million) relating to a BAT Standard Distribution Agreement dating from 2005. BAT Hrvatska d.o.o and British American

Tobacco Investments (Central and Eastern Europe) Ltd filed a reply to the statement of claim on 6 October 2017. A hearing had been scheduled to take

place on 10 May 2018, but it was postponed due to a change of the judge hearing the case. The Commercial Court in Zagreb declared they do not have

jurisdiction and that the competent court to hear this case is the Municipal Court in Zagreb. TDR d.o.o. is also named as the defendant in a claim by

Mr Perica received on 30 April 2018 and brought before the commercial court of Zagreb, Croatia. Mr. Perica seeks payment in the amount of

HRK408 million (€54.1 million / £47.2 million) claiming that BAT Hrvatska d.o.o. transferred a business unit to TDR d.o.o, thus giving rise to a

liability of TDR d.o.o. for the debts incurred by BAT Hrvatska d.o.o, on the basis of the provisions of Croatian civil obligations law. A response to the

statement of claim was filed on 30 May 2018. The Commercial Court in Zagreb declared they do not have jurisdiction and that the competent court to

hear this case is the Municipal Court in Pula. Mr Perica filed an appeal against this decision which was rejected by the High Commercial Court of The

Republic of Croatia confirming therewith that the competent court to hear this case is the Municipal Court in Pula. The Municipal Court in Zagreb

decided that the claims by Mr Perica initiated on 22 August 2017 and 30 April 2018 shall be heard as one case in front of the Municipal Court of

Zagreb. After the two hearings were held, the Municipal Court of Zagreb appointed the court financial and auditing appraisal to determine the value of

Mr Perica's claim, which it determined in the amount of €15,850,579 (£13.8 million). BAT Hrvatska d.o.o, British American Tobacco Investments

(Central and Eastern Europe) Ltd and TDR d.o.o, are able to challenge this valuation as part of the legal proceedings.

**Florence Proceedings**

77. British American Tobacco Italia SpA has been charged with administrative offences in Florence, Italy in a case against a large number of individual and

corporate defendants. This relates to potential allegations of failure to supervise or take appropriate steps to prevent alleged corruption by two (now

former) employees. The charges were dismissed at the preliminary hearing, concluded in December 2024, along with the charges against all other

defendants. The prosecutor has filed an appeal against the decision relating to British American Tobacco Italia SpA and some of the other defendants.

The appeal has not yet been scheduled.

**Patents and Trademark Litigation**

78. Certain Group companies are party to a number of patent litigation cases and procedural challenges concerning the validity of patents owned by or

licensed to them and/or the alleged infringement of third parties' patents.

79. On 20 September 2023, Healthier Choices Management Corp. (HCMC) commenced proceedings against RJR Vapor before the U.S. District Court for

the Middle District of North Carolina against the Vapour product Vuse Alto alleging infringement of U.S. Patent 9,538,788. On 17 November 2023,

RJR Vapor filed a motion to dismiss the action in its entirety. On 18 September 2024, RJR Vapor filed an inter partes review (IPR) challenging the

patentability of the '788 patent' before the U.S. Patent Trial and Appeal Board (PTAB). On 27 November 2024, the court granted RJR Vapor's motion

to stay the litigation pending the PTAB's institution decision in the IPR. On 12 March 2025, the PTAB instituted an IPR of the '788 patent'. A final

written decision on the IPR is expected in March 2026.

80. On 28 May 2020, Altria Client Services LLC (Altria) and U.S. Smokeless Tobacco Company LLC commenced proceedings against RJR Vapor before

the U.S. District Court for the Middle District of North Carolina against the vapour products Vuse Vibe and Vuse Alto, and the tin used in the Modern

Oral product Velo. Nine patents in total were asserted: two against Vibe, four against Alto and three against Velo. On 5 January 2021, Altria filed an

Amended Complaint adding Modoral Brands Inc. as a defendant with respect to the Velo product claims. A claim construction hearing was held on

28 April 2021, and the court issued its claim construction ruling on 12 May 2021. All asserted patent claims against Vibe and Velo as well as one of the

four patents asserted against Alto were dropped prior to trial, leaving three patents asserted against Alto for trial. Trial was held from 29 August 2022 to

7 September 2022. The jury found infringement by all accused products and awarded approximately US$95 million (approximately £70.6 million)

in damages. On 27 January 2023, the court rejected Altria's request to double the jury's awarded royalty rate for post-trial sales and set the royalty rate

applicable to post-trial sales to the jury's awarded rate of 5.25%. Altria did not request entry of an injunction and has stipulated it will not enforce the

monetary judgment until all appeals are exhausted, including RJR Vapor's pending motion for relief from judgment. On 10 February 2023, RJR Vapor

noticed its appeal to the United States Court of Appeals for the Federal Circuit. On 19 December 2024, the Federal Circuit affirmed the lower court's

judgment. RJR Vapor filed a request for rehearing with the Federal Circuit on 4 February 2025. The request for rehearing was denied on 4 March 2025.

On 7 August 2025, RJR Vapor filed a petition for *certiorari* with the United States Supreme Court. The Supreme Court issued an order denying the

petition for *certiorari* on 6 October 2025. On 3 July 2024, RJR Vapor moved for relief from judgment and the ongoing royalty order due to RJR

Vapor's obtaining a sublicense to Altria's patents on 13 December 2023. The judge denied that motion as to royalties prior to RJR Vapor's obtaining

the sublicense, and RJR Vapor's appeal of that ruling is currently held in abeyance at the United States Court of Appeals for the Federal Circuit. RJR

Vapor's motion to vacate ongoing royalties after it obtained the sublicense remains pending, and an evidentiary hearing is likely to be held in H1 2026

in the district court.

**Mozambican IP Litigation**

81. On 19 April 2017, Sociedade Agrícola de Tabacos, Limitada (SAT) (a BAT Group company in Mozambique) filed a complaint to the National

Inspectorate for Economic Activities (INAE), the government body under the Ministry of Industry and Trade, regarding alleged infringements of its

registered trademark (GT) by GS Tobacco SA (GST). INAE subsequently seized the allegedly infringing products (GS cigarettes) and fined and

ordered GST to discontinue manufacturing products that could infringe SAT's intellectual property rights. Following INAE's decision, in July 2017 and

March 2018, SAT sought damages via the Judicial Court of Nampula, from GST in the amount of MZN46,811,700 (£544,604) as well as a permanent

restraint order in connection with the manufacturing and selling of the allegedly infringing products. The Judicial Court of Nampula (Tribunal Judicial

de Nampula) granted the order on an interim basis on 7 August 2017. After hearing the parties, on 5 September 2017, the court found that no alleged

infringement by GST had occurred and removed the interim restraint order, and rejected the damages claim. This decision was appealed by SAT

(Infringement Appeal). GST filed an application for review against INAE's initial decision directly to the Minister of Trade and Industry, which

reversed the decision of INAE. On 31 December 2018, SAT was notified of GST's counterclaim against SAT at the Judicial Court of Nampula for

damages allegedly sustained as a result of SAT's complaint to INAE (and INAE's decision). GST is seeking damages in the amount of approximately

MZN14.5 billion (approximately £168.7 million). On 31 January 2019, SAT filed a formal response to the counterclaim. A preliminary hearing was

held on 2 April 2019, when the court heard arguments on the validity of GST's counterclaim. On 2 September 2019, SAT received notification of an

order which provided that (i) SAT's invalidity arguments had been dismissed by the court; and (ii) the GST counterclaim would proceed to trial. On

9 September 2019, SAT responded to the order by appealing the dismissal of the SAT invalidity arguments (Invalidity Appeal). SAT was notified in

December 2021 that the trial of the counterclaim was to take place on 24 February 2022. SAT subsequently submitted a complaint related to that trial to

the court, on the basis that prior to any further step being taken in relation to the trial the process should be submitted to the superior court for analysis,

as per the appeals previously submitted in the proceedings. SAT's complaint has been appreciated favourably and the process was remitted to the High

Court of Appeal for Nampula. The Court of Appeal handed down its judgment in respect of SAT's Infringement Appeal and SAT's Invalidity Appeal.

In respect of the Invalidity Appeal, the Court found that the requirements for GST's counterclaim had not been met, and accordingly found that the

counterclaim could not proceed. In respect of the Infringement Appeal, the Court partially upheld the main appeal brought by SAT, finding that there

British American Tobacco p.l.c. Form 20-F 2025<br>

had been a partial reproduction of SAT's trademarks by GST. Consequently, it ordered GST to abstain from producing and commercialising products

using packaging similar to that of SAT. However, as regards SAT's claim for compensation for damage caused by the conduct of GST the Court found

that this loss had not been proven. GST has submitted an appeal on both the main process and counterclaim. The process is now pending before the

Supreme Court.

**Malawi Group Action**

82. In December 2020, the Company and British American Tobacco (GLP) Limited (GLP) were named as defendants in a claim made in the English High

Court by around 7,500 Malawian tobacco farmers and their family members. The claim also names Imperial Brands plc and five affiliates

as defendants. The claimants allege they were subjected to unlawful and exploitative working conditions on tobacco farms from which it is alleged that

the defendants indirectly acquire tobacco. They seek unquantified damages (including aggravated and exemplary damages) for the torts of negligence

and conversion and unquantified personal and proprietary remedies for restitution of unjust enrichment. They also seek an injunction to restrain the

commission of further torts of conversion or negligence by the defendants. In January 2022, the Company and GLP were served with a similar claim by

around a further 3,500 claimants. The Company and GLP intend vigorously to defend the claims.

**Middle East Litigation**

83. In late December 2023, B.A.T. (U.K. and Export) Limited (BAT UKE) received a request for arbitration proceedings from a customer/distributor

in the Middle East, seeking damages in the range of US$117.7 million (approximately £87.5 million) to US$119.8 million (approximately £89.1

million). In April 2024, British American Tobacco ME DMCC (BAT ME DMCC) was joined to the arbitration proceedings on request of the

claimants. The claimants have since amended the quantum of their claim and now seek damages in the range of US$112.6 million (approximately

£83.7 million) to US$116.9 million (approximately £86.9 million). The final merits hearing will take place in Q1 2026.

**Asbestos Litigation**

84. As of 31 December 2025, there were four active asbestos personal injury cases served and pending against BATUS Holdings Inc. (*Horsfield,* 

*Temperley, Chimento*, and *McGuigan*). During the financial year 2025, BATUS Holdings Inc. was served with five new asbestos personal injury cases

(*Colwell, Ward*, *Temperley*, *Chimento*, and *McGuigan*), and was voluntarily dismissed from six asbestos personal injury cases (*Harshberger*, *Lowis*,

*Colwell*, *Ward*, *Weber*, and *Hardaway*). The plaintiffs in each of the active cases allege exposure to the defendants' asbestos and asbestos-containing

talcum powder and cosmetics products, and assert claims under state law, including for negligence, breach of warranty, strict liability, conspiracy, fraud

and wrongful death. The plaintiffs seek unspecified compensatory and punitive damages. Of the four active cases, *Horsfield* and *Temperley* were filed

in state court in Florida (Miami-Dade County and Broward County, respectively), *Chimento* was filed in state court in Louisiana (Orleans Parish), and

*McGuigan* was filed in state court in Pennsylvania (Philadelphia County Court of Common Pleas). BATUS Holdings Inc. has filed motions to dismiss

each of the four active cases for lack of personal jurisdiction, which motions remain pending.

**Cigarette Filter Litter Litigation**

85. On 21 November 2022, the Mayor and City Council of Baltimore, Maryland, filed a lawsuit in the Circuit Court for Baltimore City naming the

Company and RJRT, as well as PM USA, Altria Group, Liggett Group LLC and a Maryland-based distributor, as defendants. The plaintiff, a

municipality, alleges that the defendants manufactured, distributed and sold non-biodegradable cigarette filters with knowledge that consumers would

discard used filters on public property owned by the plaintiff, and further alleges that the defendants failed to warn consumers of the alleged

environmental impacts of littered filters. The plaintiff asserts causes of action for alleged violation of state and municipal civil and criminal anti-littering

and dumping laws, trespass, strict liability and negligent design defect, public nuisance, and strict liability and negligent failure to warn. The plaintiff

seeks, among other relief, unspecified damages (including punitive damages) for costs allegedly incurred removing discarded cigarette filters from

public property, and for alleged damage to land and natural resources and property value diminution, along with fines under state and municipal laws.

On 3 February 2023, PM USA filed a notice of removal of the litigation to the Federal District Court in Baltimore, Maryland. The plaintiff moved to

remand the action back to the Circuit Court for Baltimore City on 20 March 2023. The federal court, following briefing on the motion, issued an order

on 19 January 2024 remanding the action back to the Circuit Court for Baltimore City. On 19 March 2024, the Company filed a motion to dismiss the

complaint for lack of personal jurisdiction and for failure to state a legal claim. That same date, defendants RJRT, PM USA, Liggett Group LLC, and a

Maryland-based distributor moved to dismiss the complaint for failure to state a legal claim. The Company was voluntarily dismissed from the action

without prejudice via a stipulation of dismissal filed on 2 May 2024. Briefing on those defendants' pending motion to dismiss is completed, oral

argument was held on 17 July 2024. On 21 July 2025, the trial court granted the defendants' motion to dismiss in part, dismissing a number of claims

with prejudice, and denied it in part. The Circuit Court dismissed the five criminal counts for various procedural and substantive deficiencies. The

Circuit Court additionally determined that the plaintiff failed to sufficiently allege a continuing trespass under Maryland law and dismissed that claim as

well. The Circuit Court allowed the plaintiff's design defect (strict liability and negligence), public nuisance, and failure to warn (strict liability and

negligence) claims to proceed. On 5 August 2025, the defendants filed a joint motion to stay the Baltimore litigation pending the Maryland Supreme

Court's decision in an appeal in unrelated climate change litigation relating to the scope of Maryland's common law of public nuisance. The Supreme

Court's decision is expected in Q1 2026. On 12 September 2025, the Circuit Court denied the defendants' motion for a stay and ordered (as alternatively

requested) a two-year fact and expert discovery schedule. The Group will continue to monitor the Maryland Supreme Court and its pending decision in

the unrelated climate change litigation relating to the scope of the state's public nuisance law and its potential impact on the nuisance claim in the

Baltimore litigation against the Company and RJRT. On 17 November 2025, the state of Maryland filed a motion to intervene in the Circuit Court case,

seeking to file a complaint for declaratory relief to adjudicate the parties' rights and liabilities under the MSA. On 17 December 2025, the Court granted

the state's motion. The defendants will answer the state's complaint in intervention in due course.

**Carbon Neutral Litigation**

86. On 28 May 2025, plaintiffs Vanessa Bell, Destiney Murrah and Sean Nugent filed a putative class action lawsuit in federal court in California, naming

as defendants RJR Vapor, RJRT, Reynolds American and the Company. The plaintiffs allege that certain Vuse-brand vaporiser devices and consumable

products were falsely marketed to consumers as "carbon neutral," based on the defendants' allegedly false statements that the production and use of the

Vuse products resulted in no net addition of carbon dioxide to the atmosphere due to reductions of carbon emissions in their production, with remaining

emissions offset through the purchase of carbon credits. The plaintiffs assert claims for violation of state consumer protection, unfair competition and

false advertising statutes, breach of express and implied warranties, and unjust enrichment, and seek, among other relief, unspecified compensatory,

statutory, treble and punitive damages. Plaintiffs filed an amended complaint on 30 September 2025. The Company and Reynolds American moved to

dismiss the amended complaint for lack of personal jurisdiction, and RJR Vapor and RJRT moved to dismiss the amended complaint for failure to state

a claim on 10 October 2025. The plaintiffs opposed the motions filed by the Company, RJR Vapor and RJRT. Reynolds American was voluntarily

dismissed from the action without prejudice on 20 January 2026. A hearing on the dismissal motions was held on 3 February 2026 and the court

reserved the decision.

**Nahadi Litigation**

87. On 29 January 2026, a claim was filed in the U.S. District Court for the Eastern District of Virginia against the Company and British-American Tobacco

Marketing (Singapore) Private Limited (BATMS). The claimants are 196 U.S. nationals and family members who claim unquantified civil damages

under the U.S. Anti-Terrorism Act. The substance of the allegations relate to matters previously disclosed in relation to historic business activities in the

Democratic People's Republic of Korea which resulted in the Company's April 2023 entry into a three-year deferred prosecution agreement (DPA)

with the DOJ, with BATMS pleading guilty to the same charges, and a civil settlement agreement with OFAC. The Company and BATMS intend to

vigorously defend the claim.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Fox River**

Background to environmental liabilities arising out of contamination of the Fox River:

88. U.S. authorities identified potentially responsible parties (PRPs), including NCR Corporation (now called NCR Voyix Corporation) (NCR), to fund the

clean-up of polluted sediments in the Lower Fox River, Wisconsin. Discharges of Polychlorinated Biphenyls (PCBs) from paper mills and other

facilities operating close to the river caused the pollution. Industries' involvement with the environmental liabilities arises out of (i) indemnity

arrangements which it became party to due to various transactions that took place from the late-1970s onwards and (ii) subsequent litigation brought by

NCR against Industries and Appvion Inc. (Appvion) (a former Group subsidiary) in relation to those arrangements.

89. Following substantial litigation in the United States regarding the responsibility for the costs of the clean-up operations (estimated to amount to

US$1,346 million (£1,001 million) (including natural resource damages)), and enforcement proceedings brought by the U.S. Government against NCR

and Appvion to ensure compliance with regulatory orders made relating to the Fox River clean-up, the District Court of Wisconsin approved two forms

of settlement with the U.S. Government known as consent decrees on (i) 23 August 2017, pursuant to which NCR was obliged to perform and fund all

of the remaining Fox River remediation work by itself and (ii) on 14 March 2019 that concluded all remaining litigation relating to the Fox River.

90. On 3 October 2022, the United States Environmental Protection Agency issued a Certificate of Completion in respect of remedial action for the Lower

Fox River.

Industries' involvement with environmental liabilities arising out of the contamination of the Fox River:

91. NCR's position is that, under the terms of a 1998 Confidential Settlement Agreement (CSA) between it, Appvion, and Industries, and a 2005 arbitration

award, Industries and Appvion had a joint and several obligation to bear 60% of the Fox River environmental remediation costs imposed on NCR and

of any amounts NCR has to pay in respect of other Fox River PRPs' contribution claims. Industries has not acknowledged any such liability to NCR and

has defences to such claims.

92. Until May 2012, Appvion and Windward Prospects Limited (Windward) (another former Group subsidiary which indemnified Industries) paid a 60%

share of the clean-up costs incurred by NCR. Around that time, Appvion refused to continue to pay clean-up costs, and NCR demanded that Industries

pay a 60% share of those costs. Industries resisted NCR's demand and commenced indemnification proceedings against Windward and Appvion, which

were settled by entering into an agreement between Industries, Windward, Appvion, NCR and BTI 2014 LLC (BTI) (a wholly owned subsidiary of

Industries) in September 2014 (the Funding Agreement). Under the Funding Agreement, the parties agreed, among other things, a framework through

which they would together fund the ongoing costs of the Fox River clean-up including an agreement to accept funding by Industries at a level of 50% of

NCR's share of ongoing clean-up related costs (rather than 60%), subject to the ability of NCR or Industries to litigate at a later stage the extent of

Industries' liability (if any) in relation to the clean-up costs (including in respect of the 50% paid by Industries to date under the express reservation).

Appvion entered Chapter 11 bankruptcy protection on 1 October 2017.

93. Under the Funding Agreement, BTI was assigned a claim commenced by Windward in the High Court of England & Wales (the High Court) against

Sequana S.A. (Sequana) and the former Windward directors (the Windward Dividend Claims), which related to dividend payments made by Windward

to Sequana of around €443 million (approximately £386.8 million) in 2008 and €135 million (£117.9 million) in 2009 (the Dividend Payments).

94. In addition, Industries commenced an action directly against Sequana to recover the value of the Dividend Payments alleging that the dividends were

paid for the purpose of putting assets beyond the reach of Windward's creditors (including Industries) (the Section 423 Claims). The Section 423

Claims and Windward Claims were heard together.

95. The High Court upheld the Section 423 Claims but dismissed the Windward Dividend Claims.

96. The High Court ordered that Sequana pay to BTI an amount up to the full value of the 2009 Dividend Payment plus interest, equating to around

US$185 million (approximately £137.5 million). Upon the parties' cross appeals, the Court of Appeal substantially upheld the decision of the High

Court. The subsequent appeal by BTI to the Supreme Court in respect of the Windward Dividend Claims against the former Windward Directors was

dismissed on 5 October 2022.

97. On 15 May 2019, the Nanterre Commercial Court made an order placing Sequana into formal liquidation proceedings, staying execution of the

judgment, under which, to date, no payments have been made to Industries.

98. BTI brought claims against Windward's former auditors and advisers (which claims were also assigned to BTI under the Funding Agreement). BTI

commenced a claim against PricewaterhouseCoopers LLP (PwC) in the High Court in respect of its role as Windward's auditor at the time of the

Dividend Payments. Trial commenced on 4 June 2024. The claims were settled on 21 June 2024, pursuant to the terms set out in a confidential

settlement agreement entered into by BTI, PwC and the joint administrators of Windward (who were a nominal party to the proceedings). An agreed

stay is presently in place in respect of BTI's separate assigned claim against Freshfields Bruckhaus Deringer.

99. The sums Industries has paid under the Funding Agreement are subject to the express reservation set out in paragraph 92above and ongoing adjustment.

Clean-up costs can only be estimated in advance of the work being carried out and certain sums payable are the subject of ongoing U.S. litigation.

Industries is potentially liable for further costs associated with the clean-up. Industries has a provision of £41 million which represents the current best

estimate of its further exposure, see note 24.

**Kalamazoo**

100. Georgia-Pacific, a designated PRP in respect of the Kalamazoo River in Michigan, also pursued NCR in relation to remediation costs caused by PCBs

released into that river. On 26 September 2013, the United States District Court, Michigan held that NCR was liable as a PRP on the basis that it had

arranged for the disposal of hazardous material for the purposes of the Comprehensive Environmental Response, Compensation and Liability Act

(CERCLA).

101. Following further litigation, on 11 December 2019, NCR announced that it had entered into a consent decree with the U.S. Government and the State of

Michigan (subsequently approved by the court on 2 December 2020), pursuant to which it assumed liability for certain remediation work at the

Kalamazoo River. The payments to be made on the face of the consent decree in respect of such work total approximately US$245 million

(approximately £182.1 million). The consent decree also provides for the payment by NCR of an outstanding judgment against it of approximately

US$20 million (approximately £14.9 million) to Georgia-Pacific.

102. The quantum of the clean-up costs for the Kalamazoo River is presently unclear. It seems likely to exceed the amounts payable on the face of the

consent decree.

103. On 10 February 2023, NCR filed a complaint in the United States District Court for the Southern District of New York against Industries, seeking a

declaration that Industries must compensate NCR for 60% of costs NCR incurred and incurs relating to the Kalamazoo River site on the asserted basis

that the Kalamazoo River constitutes a 'Future Site' for the purposes of the CSA. The Funding Agreement described above does not resolve these

claims. On 23 June 2023, Industries filed its defence and counterclaims in the proceedings. After a motion by NCR, on 14 September 2024, the court

issued a judgment, striking out one of Industries' eight affirmative defences and dismissing three of Industries' five counterclaims against NCR's

complaint. The proceedings are ongoing.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Other environmental matters**

104. Reynolds American and its subsidiaries are subject to federal, state and local environmental laws and regulations concerning the discharge, storage,

handling and disposal of hazardous or toxic substances. Such laws and regulations provide for significant fines, penalties and liabilities, sometimes

without regard to whether the owner or operator of the property or facility knew of, or was responsible for, the release or presence of hazardous or toxic

substances. In addition, third parties may make claims against owners or operators of properties for personal injuries and property damage associated

with releases of hazardous or toxic substances. In the past, RJRT has been named a PRP with third parties under CERCLA with respect to several

superfund sites. Reynolds American and its subsidiaries are not aware of any current environmental matters that are expected to have a material adverse

effect on the business, results of operations or financial position of Reynolds American or its subsidiaries.

**Investigations**

105. The Group investigates, and becomes aware of governmental authorities' investigations into, allegations of misconduct, including alleged breaches of

sanctions and allegations of corruption at Group companies. Some of these allegations are currently being investigated. The Group cooperates with the

authorities, where appropriate.

106. On 25 April 2023, the Group announced that it had reached agreement with DOJ and the United States Department of the Treasury's Office of Foreign

Assets Controls (OFAC) to resolve previously disclosed investigations into suspicions of sanctions breaches. These concerned business activities

relating to the Democratic People's Republic of Korea between 2007 and 2017. The Company entered into a three-year deferred prosecution agreement

(DPA) with DOJ and a civil settlement agreement with OFAC. DOJ's charges against the Company—one count of conspiring to commit bank fraud

and one count of conspiring to violate sanctions laws—were filed and will later be dismissed if the Company abides by the terms of the DPA. In

addition, a BAT subsidiary in Singapore, British-American Tobacco Marketing (Singapore) Private Limited, pleaded guilty to the same charges.

The total amount payable to the U.S. authorities is approximately US$635 million (approximately £472.3 million) plus interest, which has been paid by

the Company.

107.*Competition Investigations:* There are instances where the Group investigates or where Group companies are cooperating with relevant national

competition authorities in relation to competition law investigations and/or engaged in legal proceedings at the appellate level, including (amongst

others) in Belgium and Brazil.

In regards to the previously disclosed consent order entered into with the Nigerian Federal Competition and Consumer Protection Commission

(FCCPC) by British American Tobacco (Holdings) Limited, British American Tobacco (Nigeria) Limited and British American Tobacco Marketing

(Nigeria) Limited in December 2022, the monitors appointed under the order remained in place until Q4 2025.

108.*Marketing Activities:* In addition, the Group is, and may in the future be, subject to investigations or legal proceedings in relation to, among other things,

its marketing, promotion or distribution activities in respect of its products. This includes, but is not limited to, allegations that such activities, whether

undertaken through traditional channels, digital platforms, third parties, or distribution applications, do not comply with applicable laws or regulations.

As such, the Group or Group companies, could be subject to liability and costs associated with any damages, fines, or penalties brought in connection

with these allegations.

**Closed litigation matters**

109. The following matters on which the Company reported in the contingent liabilities and financial commitments note 31 to the Company's 2024 financial

statements have been dismissed, concluded or resolved as noted below and shall not be included in future reports:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Matter | Jurisdiction | Companies named as Defendants | Description | Disposition |
| *Lowis, Colwell, Weber,* <br>*Ward, Hardaway and* <br>*Harshberger* <br>| U.S. | BATUS Holdings Inc. | Asbestos Litigation | Voluntary dismissal by <br>plaintiffs<br>|
| Netherlands Competition <br>Investigation<br>| Netherlands | British American Tobacco <br>Nederland B.V.<br>British American Tobacco <br>International (Holdings) B.V.<br>| Competition | Fine issued against British <br>American Tobacco <br>International (Holdings) <br>B.V.<br>|
| U.S. Department of Justice <br>Action<br>| U.S. | RJRT | RICO | Posting of corrective <br>communication signage at <br>retail is complete <br>|
| State Settlement Agreement: <br>Missouri<br>| U.S. | RJRT, SFNTC | State Settlement Agreements-<br>Enforcement and Validity<br>| Arbitration award finding <br>Missouri failed to diligently <br>enforce upheld, resulting in <br>credits to RJRT's MSA <br>settlement payments<br>|
| State Settlement Agreement: <br>Mississippi<br>| U.S. | RJRT | State Settlement Agreements-<br>Enforcement and Validity<br>| Settlement |
| State Settlement Agreement: <br>Delaware<br>| U.S. | RJRT, Reynolds American | State Settlement Agreements-<br>Enforcement and Validity<br>| Settlement |

---

**General Litigation Conclusion**

110. While it is impossible to be certain of the outcome of any particular case or of the amount of any possible adverse verdict, the Group believes that the

defences of the Group's companies to all these various claims are meritorious on both the law and the facts, and a vigorous defence is being made

everywhere.

111. If adverse judgments are entered against any of the Group's companies in any case, avenues of appeal will be pursued. Such appeals could require the

appellants to post appeal bonds or substitute security in amounts which could in some cases equal or exceed the amount of the judgment.

112. At least in the aggregate, and despite the quality of defences available to the Group, it is possible that the Group's results of operations or cash flows in

any particular period could be materially adversely affected by the impact of a significant increase in litigation, difficulties in obtaining the bonding

required to stay execution of judgments on appeal, or any final outcome of any particular litigation, or governmental investigation.

113. Having regard to all these matters, with the exception of the Approved Plans and Fox River (see note 24), the Group does not consider it appropriate to

make any provision in respect of any pending litigation because the likelihood of any resulting material loss, on an individual case basis, is not

considered probable and/or the amount of any such loss cannot be reasonably estimated. In addition, the Group accrues for damages, attorneys' fees and/

or statutory interest, including in respect of certain *Engle* Progeny cases, certain U.S. individual smoking and health cases and the DOJ medical

reimbursement/corrective statement case.

**Other contingencies**

British American Tobacco p.l.c. Form 20-F 2025<br>

114.*JTI Indemnities*. By a purchase agreement dated 9 March 1999, amended and restated as at 11 May 1999, referred to as the 1999 Purchase Agreement,

R.J. Reynolds Tobacco Holdings, Inc. (RJR) and RJRT sold their international tobacco business to JTI. Under the 1999 Purchase Agreement, RJR and

RJRT retained certain liabilities relating to the international tobacco business sold to JTI, and agreed to indemnify JTI against: (i) any liabilities, costs

and expenses arising out of the imposition or assessment of any tax with respect to the international tobacco business arising prior to the sale, other than

as reflected on the closing balance sheet; (ii) any liabilities, costs and expenses that JTI or any of its affiliates, including the acquired entities, may incur

after the sale with respect to any of RJR's or RJRT's employee benefit and welfare plans; and (iii) any liabilities, costs and expenses incurred by JTI or

any of its affiliates arising out of certain activities of Northern Brands.

115. RJRT has received claims for indemnification from JTI, and several of these have been resolved. Although RJR and RJRT recognise that, under certain

circumstances, they may have other unresolved indemnification obligations to JTI under the 1999 Purchase Agreement, RJR and RJRT disagree what

circumstances described in such claims give rise to any indemnification obligations by RJR and RJRT and the nature and extent of any such obligation.

RJR and RJRT have conveyed their position to JTI, and the parties have agreed to resolve their differences at a later date.

116.*ITG Indemnity*. In the purchase agreement relating to the Divestiture as amended, Reynolds American agreed to defend and indemnify, subject to

certain conditions and limitations, ITG in connection with claims relating to the purchase or use of one or more of the Winston, Kool, Salem or

Maverick cigarette brands on or before 12 June 2015, as well as in actions filed before 13 June 2025, relating to the purchase or use of one or more of

the Winston, Kool, Salem or Maverick cigarette brands. In the purchase agreement relating to the Divestiture, ITG agreed to defend and indemnify,

subject to certain conditions and limitations, Reynolds American and its affiliates in connection with claims relating to the purchase or use of 'blu' brand

e-cigarettes. ITG also agreed to defend and indemnify, subject to certain conditions and limitations, Reynolds American and its affiliates in actions filed

after 12 June 2025, relating to the purchase or use of one or more of the Winston, Kool, Salem or Maverick cigarette brands after 12 June 2015. ITG has

tendered a number of actions to Reynolds American under the terms of this indemnity, and Reynolds American has, subject to a reservation of rights,

agreed to defend and indemnify ITG pursuant to the terms of the indemnity. Reynolds American has tendered an action to ITG under the terms of this

indemnity, and ITG has, subject to a reservation of rights, agreed to defend and indemnify Reynolds American and its affiliates pursuant to the terms of

the indemnity.

These claims are substantially similar in nature and extent to claims asserted directly against RJRT in similar actions.

117.*Loews Indemnity*. In 2008, Loews Corporation (Loews), entered into an agreement with Lorillard Inc., Lorillard Tobacco, and certain of their affiliates,

which agreement is referred to as the 'Separation Agreement'. In the Separation Agreement, Lorillard agreed to indemnify Loews and its officers,

directors, employees and agents against all costs and expenses arising out of third-party claims (including, without limitation, attorneys' fees, interest,

penalties and costs of investigation or preparation of defence), judgments, fines, losses, claims, damages, liabilities, taxes, demands, assessments, and

amounts paid in settlement based on, arising out of or resulting from, among other things, Loews' ownership of or the operation of Lorillard and its

assets and properties, and its operation or conduct of its businesses at any time prior to or following the separation of Lorillard and Loews (including

with respect to any product liability claims). Loews is a defendant in three pending product liability actions, each of which is a putative class action.

Pursuant to the Separation Agreement, Lorillard is required to indemnify Loews for the amount of any losses and any legal or other fees with respect to

such cases. Following the closing of the Lorillard merger, RJRT assumed Lorillard's obligations under the Separation Agreement as was required under

the Separation Agreement.

118.*SFRTI Indemnity*. In connection with the 13 January 2016 sale by Reynolds American of the international rights to the NAS brand name and associated

trademarks, along with SFR Tobacco International GmbH (SFRTI) and other international companies that distributed and marketed the brand outside

the United States, to JT International Holding BV (JTI Holding), each of SFNTC, R. J. Reynolds Global Products, Inc., and R. J. Reynolds Tobacco

B.V. agreed to indemnify JTI Holding against, among other things, any liabilities, costs, and expenses relating to actions (i) commenced on or before

(a) 13 January 2019, to the extent relating to alleged personal injuries, and (b) in all other cases, 13 January 2021; (ii) brought by (a) a governmental

authority to enforce legislation implementing European Union Directive 2001/37/EC or European Directive 2014/40/EU or (b) consumers or a

consumer association; and (iii) arising out of any statement or claim (a) made on or before 13 January 2016, (b) by any company sold to JTI Holding in

the transaction, (c) concerning NAS brand products consumed or intended to be consumed outside of the United States and (d) that the NAS brand

product is natural, organic, or additive-free.

119.*Indemnification of Distributors and Retailers*. RJRT, Lorillard Tobacco, SFNTC, American Snuff Co. and RJR Vapor have entered into agreements to

indemnify certain distributors and retailers from liability and related defence costs arising out of the sale or distribution of their products. Additionally,

SFNTC has entered into an agreement to indemnify a supplier from liability and related defence costs arising out of the sale or use of SFNTC's

products. The cost has been, and is expected to be, insignificant. RJRT, SFNTC, American Snuff Co. and RJR Vapor believe that the indemnified

claims are substantially similar in nature and extent to the claims that they are already exposed to by virtue of their having manufactured those products.

120. Except as otherwise noted above, Reynolds American is not able to estimate the maximum potential of future payments, if any, related to these

indemnification obligations.

**Tax disputes**

The Group has exposures in respect of the payment or recovery of a number of taxes. The Group is and has been subject to a number of tax audits covering,

amongst others, excise tax, value added taxes, sales taxes, corporate taxes, withholding taxes and payroll taxes.

The estimated costs of known tax obligations have been provided in these accounts in accordance with the Group's accounting policies. In some countries,

tax law requires that full or part payment of disputed tax assessments be made pending resolution of the dispute. To the extent that such payments exceed the

estimated obligation, they would not be recognised as an expense. While the amounts that may be payable or receivable in relation to tax disputes could be

material to the results or cash flows of the Group in the period in which they are recognised, the Board does not expect these amounts to have a material

effect on the Group's financial condition.

The following matters are in or may proceed to litigation:

**Corporate taxes**

**Brazil**

Profits of overseas subsidiaries. The Brazilian Federal Tax Authority has filed claims against Souza Cruz seeking to reassess the profits of overseas

subsidiaries to corporate income tax and social contribution tax. The reassessments are for the years 2004 until and including 2012 for a total amount of

BRL1,645 million (£223 million) to cover tax, interest and penalties.

Souza Cruz appealed all reassessments. The Administrative Court stage has concluded and all judgments have been appealed to the Judicial Courts.

Regarding the first assessments (2004-2006), Souza Cruz's appeals were rejected by the ultimate Administrative Court after which Souza Cruz filed two

lawsuits with the Judicial Court to appeal the reassessments. The judgment in respect of the reassessment of corporate income tax and social contribution

have been decided in favour of Souza Cruz by the first level of the Judicial Court. These cases are awaiting trial on the second level of the Judicial Court. The

appeal against the second assessments (2007 and 2008) was upheld at the second tier tribunal and was closed. In 2015, a further reassessment for the same

period (2007 and 2008) was raised after the five-year statute of limitation which has been appealed against. Regarding the 2007–2008 period, Souza Cruz

is still awaiting a decision from the first level of the Judicial Court. Souza Cruz received further reassessments in 2014 for the 2009 calendar year and in

2015 an assessment for the 2010 calendar year. Souza Cruz appealed both the reassessments in full. In December 2016, assessments were received for the

British American Tobacco p.l.c. Form 20-F 2025<br>

calendar years 2011 and 2012 which have also been appealed. In April 2025 a favourable decision was received for the 2009–2012 cases in the first level of

the Judicial Court, with the Brazilian Tax Authorities' appeal currently pending.

Rio de Janeiro VAT Incentives. The Brazilian Federal Tax authority has challenged the treatment of Rio de Janeiro VAT incentives. In October 2021, in

respect of the 2016-2021 calendar years, the authorities' position was upheld at the lower Judicial Court. Souza Cruz has appealed in full against the

Judgment. In June 2024, the Brazilian tax authorities initiated a tax audit specifically focused on the exclusion of the VAT incentives from corporate income

tax. Consideration of the defence strategy led management to file a petition to withdraw its judicial claims in order to be able to defend the company's

position in the administrative courts. The Brazilian Federal Tax authority filed an appeal challenging the withdrawal of the judicial claim. The Brazil Tax

Authorities' appeal was unsuccessful and they have confirmed that they do not intend to appeal further. This has resulted in a reversal of the benefit

recognised for the company's claim for the period 2016-2019 of BRL327 million (£44 million) and a provision for potential exposure to tax, interest and

penalties of BRL1,047 million (£142 million) for the 2020-2023 period, reflecting the tax assessment received and a binding Supreme Court decision which

reduces the value of these incentives by 10% (as described in note 6(k)).

**Indonesia**

Indonesia's Directorate General of Taxes has filed assessments against Bentoel group companies mainly relating to domestic and other intra-group

transactions during the years 2016-2021. Objection letters have been filed with the Tax Office and these assessments are being challenged at various levels in

court. During 2025 a number of these disputes were resolved, and other cases have moved from lower courts to the Supreme Court. Provisions totalling

IDR1,632 billion (£73 million) have been made in respect of claims totalling IDR6,054 billion (£270 million) including interest and penalties.

**Netherlands**

The Dutch tax authority has issued a number of assessments on various issues across the years 2003-2016 in relation to various intra-group transactions. The

assessments amount to an aggregate net potential liability across these periods of £1,082 million covering tax, interest and penalties. The Group appealed

against the assessments in full.

In relation to the periods from 2003-2007 (with an aggregate potential net liability of £6 million), the Amsterdam Court of Appeal issued judgments on 8

October 2024. The appeal against the assessments was upheld, with the court finding for the Group. The Dutch tax authority have appealed to the Supreme

Court. In June 2025, the Advocate General of the Supreme Court upheld the judgment of the Court of Appeal and the appeal is now with the Supreme Court

to decide whether to follow the Advocate General.

In relation to the periods from 2008-2016 (with an aggregate potential net liability of £1,076 million), the District Court of North Holland issued judgments

on 17 October 2022 and 15 December 2023, resulting in findings against the Group on a number of issues. On the issue of mark to market losses on external

bonds of British American Tobacco Holdings (The Netherlands) B.V., the appeal against the assessments was upheld in full, with the court finding for the

Group. In relation to other intra-group transactions, including the termination of licence rights, the court found against the Group and upheld a fine of

£92 millionfor the filing of an intentionally incorrect tax return. The appeals against these judgments were heard in the Amsterdam Court of Appeal in 2024.

On 11 September 2025, the Court of Appeal issued its judgment, rescinding the £92 million fine and reducing the adjustments relating to the termination of

licence rights. The Court of Appeal largely upheld the District Court's findings on the other intra-group transactions. Both the Group and the Dutch Tax

Authorities have issued pro-forma appeals to the Supreme Court.

Having considered the judgment and the Dutch judicial and international proceedings available to it, the Group recognised a further adjusting charge of

£171 million in 2025, with a total provision of £326 million recognised at 31 December 2025.

The Group believes that its companies have meritorious defences in law and fact in each of the above matters and intends to pursue each dispute through the

judicial system as necessary.

**Indirect and other taxes**

**Bangladesh**

In January 2019, a competitor filed a writ petition against the government and the National Board of Revenue (NBR) by which it initially challenged the

failure of Government to implement the closing budget speech of the Honourable Finance Minister dated 27 June 2018 and reserving low segment for local

brands. Thereafter, the competitor instead challenged the exclusion of protection given to local brands of cigarette manufactured by local manufacturers and

sought a direction to continue the protection so granted to the local manufacturers of cigarettes in pursuance of a 2017 Special Order. The competitor further

challenged the legality of a 2018 Special Order of the NBR through which the said protection was revoked. British American Tobacco Bangladesh Company

Limited (BAT Bangladesh) was initially not a party to the writ petition, subsequently it became a party through an addition of party application. Upon

hearing on multiple occasions, the High Court passed judgment in the matter on 21 September 2020. BAT Bangladesh filed an appeal against the High Court

order and obtained a stay on 4 October 2020. By holding the prospective portion of the 2018 Special Order legal, the Court did not allow the discriminatory

regime to continue. However, by holding illegal the retrospective portion of the 2018 Special Order, the Court revived the discriminatory regime for only one

year, that is from 1 June 2017 to 6 June 2018 and held that any shortfall of revenue under the 2017 Special Order may be recovered from any party or

manufacturer during the period of 1 June 2017 to 6 June 2018. Subsequently, the Large Taxpayers' Unit (LTU) VAT issued a show cause notice dated 24

September 2020 following the High Court judgment claiming unpaid VAT & Supplementary Duty (SD) of BDT24,371 million (£148 million) from 1 June

2017 to 6 June 2018. BAT Bangladesh appealed against the High Court judgment before the Appellate Division and obtained an order of stay. Since the High

Court judgment is stayed, the LTU proceeding shall also be deemed to have been stayed.

In addition, BAT Bangladesh has received a memo from the NBR claiming BDT20,540 million (£125 million). This claim is related to VAT and SD

allegedly owed by BAT Bangladesh due to the production of an extra 18 billion cigarettes. The allegation is based on an undisclosed purchase of local leaf,

which is apparently inferred from a discrepancy found in BAT Bangladesh's 2016 Annual Report and VAT-1 records. NBR has reopened the matter and sent

a memo to LTU cancelling the earlier order of the LTU Commissioner which was in favour of BAT Bangladesh and directing LTU to make the demand to

BAT Bangladesh claiming the above-mentioned VAT and SD. Subsequently, BAT Bangladesh has received an official demand for payment related to this

claim from LTU. BAT Bangladesh has challenged the memo of NBR and obtained a Rule in this regard. It has also challenged the demand letter of LTU and

prayed for issuance of a supplementary rule and stayed the demand letter. The matter is currently pending before the High Court.

BAT Bangladesh has also received show cause notices from the NBR alleging that the company has avoided excise payment amounting to

BDT3,794 million (£23 million) during 2020 to 2024. The notices claimed that the excise avoidance occurred due to the supply of cigarettes stored in BAT

Bangladesh's warehouse to its distributors at increased prices. BAT Bangladesh formally responded to the show cause notices, asserting that it has always

acted within the law and hence the basis of the allegation and claim is unfounded. A hearing took place regarding the first show cause notice for

BDT1,687 million (£10 million) on 13 November 2024 following which the NBR has issued a demand for the £10 million. Subsequently, on 13 January

2025, BAT Bangladesh filed a writ in the High Court, challenging the demand on point of law. BAT Bangladesh has appealed the tax demand before the

NBR Appellate Tribunal and deposited 10% of the amount. At the hearing on 22 July 2025, BAT Bangladesh plans to request an adjournment, as a related

application is pending before the Supreme Court to remove a remark made by the High Court suggesting BAT Bangladesh had an "ulterior motive." BAT

Bangladesh believes this remark is unfair and could affect the outcome of the Tribunal hearing. The remaining show cause notices are currently pending

hearing. The NBR Appellate Tribunal hearing concluded during 2025 and the pronouncement of order is expected following a subsequent court hearing in

June 2026.

In another matter, VAT rebate claims of BAT Bangladesh for the period July 2022 and October 2023 were denied and an assessment of BDT5,137 million

(£31 million) was received. There are four disputes concerning this same matter, which is the availability of evidence to show the disposal of production

materials on which VAT input tax has been incurred into the finished products. The disputes are currently subject to an administrative appeal. The High

British American Tobacco p.l.c. Form 20-F 2025<br>

Court directed the disputes back to the Tax Tribunal to hear all four appeals together. The Tax Tribunal heard the cases on 4 December 2025, and again on

25 January 2026. The verdict is outstanding and expected sometime in Q1 2026. If the verdict is unfavourable, BATB will appeal to the High Court.

Finally, in October 2025, the NBR issued show cause notices to BAT Bangladesh wherein the NBR asserted that local raw tobacco leaf purchases in the

2022 to 2023 financial years were subject to VAT. A hearing between BAT Bangladesh and the NBR was held in November 2025, and the NBR issued a

demand notice for BDT2,515 million (£15 million) on 7 January 2026. The matter is now in litigation, and BAT is expected to make an appeal at the

Appellate Tribunal of the NBR before the 7 April 2026 deadline. The same challenge has previously been brought by the NBR in respect of the 2010 to 2015

financial years (demand for BDT1,572 million (£10 million)), and Alternate Dispute Resolution resulted in a full withdrawal of the NBR's claim. Similarly,

the same challenge was brought in respect of the 2015 to 2018 financial years (BDT1,235 million (£8 million)), and the High Court granted a stay order on

the NBR's demand which is still in place. Show cause notices have been received in respect of the same matter covering the 2021 and 2024 financial years

(BDT953 million (£6 million) and BDT1,917 million (£12 million), respectively), with no final demand received yet.

**Brazil**

Court proceedings are underway related to an assessment of VAT arising from the allocation of sales tax between different states. The amount involved is

BRL142 million (£19 million). The assessment was issued by the São Paulo state authorities on the grounds that, in the period up to 2018, BAT treated local

operations as interstate ones to reduce the VAT paid in São Paulo.

This assessment was appealed to the courts of first and second instance. In both cases, the decisions were unfavourable. In 2023, BAT filed an appeal to the

Superior Court which is awaiting a court hearing.

**South Korea**

In 2016, the Board of Audit and Inspection of Korea (BAI) concluded its tax assessment in relation to the 2014 year-end tobacco inventory, and imposed

additional national excise, local excise, VAT taxes and penalties. This resulted in the recognition of a KRW80.7 billion (£42 million) charge by Group

subsidiaries, Rothmans Far East B.V. Korea Branch Office and BAT Korea Manufacturing Ltd. Management deems the tax to be unfounded and has

appealed to the tax tribunal against the assessment. On grounds of materiality and the likelihood of the tax being reversed in future, the Group classified the

tax and penalties charge as an adjusting item in 2016. All amounts have been paid and expensed in the both the Group and local financial statements.

For the VAT portion of the assessments of KRW6.7 billion (£3 million), the trial court ruled in favour of Rothmans Far East B.V. Korea Branch Office in

2019. The Korean government appealed the ruling immediately thereafter but the appellate court affirmed the ruling of the trial court. The decision was

finally affirmed by the Supreme Court in 2021 and Rothmans Far East B.V. Korea Branch Office duly received the amount litigated (VAT portion) including

statutory interests shortly thereafter in 2021.

For the local and national excise portion of the assessments, the trial court ruled in favour of the Korean government in June 2020 and the decision was

affirmed by the appellate court in September 2023. British American Tobacco Korea Manufacturing Ltd. appealed to the Supreme Court in October 2023.

The Supreme Court has not set a hearing date yet and the case is currently pending at the Supreme Court.

**Commitments in relation to service contracts, non-capitalised leases** 

The total future minimum payments under non-cancellable service contracts based on when payments fall due:

---

| | | |
|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>|
| **Service contracts** |  |  |
| Within one year | **72** | 63 |
| Between one and five years | **18** | 30 |
|  | **90** | 93 |

---

Financial commitments arising from short-term leases and leases of low-value assets that are not capitalised under IFRS 16 *Leases* are £7 million (2024:

£10 million) for property and £1 million (2024: £2 million) for plant, equipment and other assets.

**32 Interests in subsidiaries**

**Subsidiaries with material non-controlling interests:**

Non-controlling interests principally arise from the Group's listed investments in Bangladesh, the Caribbean, Malaysia, Sri Lanka, Kenya and Vietnam. As a

result of the acquisition of Reynolds in 2017, the non-controlling interests are not material to the Group individually, or in aggregate. In 2025 and 2024, non-

controlling interests represented less than 5% of the Group's profit for the year<sup>\*</sup>. In 2025, 2024 and 2023, non-controlling interests represented less than 1%

of the Group's equity for the year.

**Note:**

\*Due to the loss for the year in 2023, the 2023 calculation was not meaningful.

**Subsidiaries subject to restrictions:**

In prior years, as a result of the Group's Canadian subsidiaries, Imperial Tobacco Canada and Imperial Tobacco Company Limited (together, ITCAN),

entering CCAA protection, the assets of ITCAN were subject to restrictions. Under the terms of CCAA, the court appointed FTI Consulting Canada Inc. to

act as a monitor. This monitor had no operational role and was not involved in the management of the business. As ITCAN continued to meet the

requirements of IFRS 10 *Consolidated Financial Statements*, the Group continued to consolidate the results of ITCAN. While the Group continued to control

the operations of its Canadian subsidiary, there were restrictions over the ability to access or use certain assets including the ability to remit dividends.

As a result of the Approved Plans in Canada being implemented (refer to note 24), ITCAN is no longer under CCAA protection. However, certain

obligations and restrictions still apply to ITCAN as part of the Approved Plans, including a requirement that repatriation of funds to shareholders is permitted

only after the annual payment is made to the Global Settlement Trust Account, provided there are no disputed amounts.

The table below summarises the assets and liabilities of ITCAN:

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | | |
|:---|:---|:---|
| Summarised financial information | **2025**<br>**£m**<br>| 2024<br>£m<br>|
| Non-current assets | **3033** | 3946 |
| Current assets | **818** | 2904 |
| Non-current liabilities | **(2853)** | (3814) |
| Current liabilities | **(296)** | (2811) |
|  | **702** | 225 |

---

Included in non-current assets for 2025 is goodwill of £2.0 billion (2024: £2.2 billion) subject to impairment reviews (note 12) and deferred tax assets of £1.0

billion (2024: £1.7 billion). Included in non-current liabilities is the Approved Plans provision of £2,794 million (2024: £3,747 million) which is explained in

note 24. Included in current liabilities are trade and other payables of £277 million (2024: £341 million), which include an amount of £85 million related to the

Approved Plans in Canada (see note 25) as well as amounts payable in respect of duties and excise and accrued charges. In 2024, the Approved Plans upfront

payment provision of £2,456 million was also included in current liabilities. This was paid in the second half of 2025. A breakdown of current assets has

been provided below.

---

| | | |
|:---|:---|:---|
| | **2025**<br>**£m**<br>| 2024<br>£m<br>|
| Cash and cash equivalents<sup>\*</sup> | **340** | 2249 |
| Inventory | **40** | 120 |
| Investments held at fair value | **—** | 437 |
| Income tax receivable | **412** | 17 |
| Other | **26** | 81 |
|  | **818** | 2904 |

---

**Note:**

\*Cash and cash equivalents above include £268 million (2024: £2,072 million) of restricted cash and cash equivalents (refer to note 21). The Group defines restricted cash and cash equivalents as where there are

significant restrictions on its ability to access or use the assets and settle the liabilities of the Group, but excludes cash and cash equivalents where there are also outstanding local currency borrowings or where

there is an outstanding excise liability. In addition, dividends payable would also be excluded from restricted cash and cash equivalents if the dividend has been approved by the necessary regulatory channels.

**33 Sustainability costs**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Notes | **2025**<br>**£m**<br>| **2024**<br>**£m**<br>| **2023**<br>**£m**<br>|
| **Sustainability expenditures** |  |  |  |  |
| Recycling/waste costs |  | **49** | 66 | 27 |
| Renewable energy attribute certificates |  | **2** | 2 | 2 |
| Severe weather events and other natural conditions |  | **—** | 10 | 9 |
| **Sustainability costs – expenses to the income statement\*** |  | **51** | 78 | 38 |
| Sustainability capital expenditures |  | **8** | 30 | 34 |
| **Sustainability costs – capital expenditures** | **13(a)** | **8** | 30 | 34 |

---

**Recycling/waste costs**

The Group incurs recycling costs in relation to its Take-Back schemes as well as waste collection costs mandated by Extended Producer Responsibility

(EPR) schemes and similar schemes. EPR schemes are where the producer's responsibility for a product is extended to the post-consumer stage of a

product's life cycle. In 2025, these costs amount to £49 million (2024:£66 million).

**Renewable energy attribute certificates**

The Group purchases renewable energy and associated renewable energy attribute certificates. The costs of these certificates are £2 million (2024: £2

million). Most of the certificates are purchased at the same time as the electricity and therefore the costs are booked as an expense to the income statement.

**Severe weather events and other natural conditions**

In 2024, a severe weather event damaged machinery equipment. The impact of the impairment and repair costs in relation to these machines was £11 million.

This is partially offset by a reversal of prior year write-offs of £1 million as some of the inventory was salvaged.

In 2023, a severe weather event caused the destruction of a stock of tobacco leaves in a warehouse. The impact of the write-off of this inventory was £9

million.

**Sustainability capital expenditures**

The sustainability capital expenditures mentioned above are investments directed towards equipment to drive energy efficiency and renewable energy

generation, water recycling and efficiency projects, waste reduction, and product innovation-led specification improvements to drive recyclability.

**34 Post balance sheet events**

In January 2026, two Group subsidiaries (Reynolds American Inc. and R.J. Reynolds Tobacco Company (RJRT)) entered into a settlement agreement related

to historical litigation with ITG Brands, LLC (ITG). The dispute was with respect to the liability arising under the Florida State Settlement Agreement,

specifically regarding the four brands (Winston, Salem, Kool and Maverick) that were sold to ITG in 2015.

In settlement of the dispute, ITG paid RJRT a lump sum of US$200 million (£148.7 million) on 30 January 2026. Additionally, ITG will also reimburse

RJRT the following amounts by the following dates:

–15 October 2026: US$75.0 million (£55.8 million);

–15 October 2027: US$77.9 million (£57.9 million); and

–15 October 2028: US$80.8 million (£60.1 million).

British American Tobacco p.l.c. Form 20-F 2025<br>

Each payment is fully contingent upon RJRT accruing an overall MSA/Previously Settled States Settlement Agreements (PSSSA) liability in excess of the

specified amount in the relevant calendar year.

The initial payment of US$200 million (£148.7 million) will be treated as an adjusting item in 2026, with the subsequent payments treated as a contingent

asset until RJRT accrues an overall MSA/PSSSA liability requiring the relevant amounts to be paid. ITG is also required to reimburse RJRT for future

payments RJRT makes to Florida based on sales of the Acquired Brands. Refer to note 31 for further information on the historical litigation with ITG.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Item 19 - Exhibits**

The following documents are filed in the SEC EDGAR system, as part of this Form 20-F, and can be viewed on the SEC's website, www.sec.gov:

---

| |
|:---|
| Exhibit <br>Number<br>|
| 1<br> <u>[Articles of Association of British American Tobacco p.l.c.](https://www.sec.gov/Archives/edgar/data/1303523/000095015723000371/ex99-1.htm)</u><sup>1</sup> |
| 2.1<br> <u>[Second Amended and Restated Deposit Agreement, dated as of 26 November 2018, by and among British American Tobacco p.l.c., Citibank,](https://www.sec.gov/Archives/edgar/data/1303523/000095015720000375/ex4-1.htm)</u><br><u>[N.A., as depositary bank, and all holders and beneficial owners of American Depositary Shares issued thereunder.](https://www.sec.gov/Archives/edgar/data/1303523/000095015720000375/ex4-1.htm)</u><sup>2</sup><br>|
| 2.2<br> <u>[Indenture, dated as of 15 August 2017, among British American Tobacco p.l.c. and certain of its subsidiaries as guarantors, and Wilmington](https://www.sec.gov/Archives/edgar/data/1303523/000119312518083410/d492188dex24.htm)</u><br><u>[Trust, National Association, as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000119312518083410/d492188dex24.htm)</u><sup>3</sup><br>|
| 2.3<br> <u>[Supplemental Indenture No. 1, dated as of 28 September 2018, among British American Tobacco p.l.c. and certain of its subsidiaries as](https://www.sec.gov/Archives/edgar/data/1275283/000119312518290740/d577355dex42.htm)</u><br><u>[guarantors, and Wilmington Trust, National Association, as Trustee.](https://www.sec.gov/Archives/edgar/data/1275283/000119312518290740/d577355dex42.htm)</u><sup>4</sup><br>|
| 2.4<br> <u>[Indenture, dated as of 6 September 2019, by and among B.A.T Capital Corporation, the Guarantors party thereto and Citibank, N.A., as trustee,](https://www.sec.gov/Archives/edgar/data/1303523/000095015719000966/ex4-1.htm)</u><br><u>[authentication agent, transfer agent, registrar, calculation agent and initial paying agent.](https://www.sec.gov/Archives/edgar/data/1303523/000095015719000966/ex4-1.htm)</u><sup>5</sup><br>|
| 2.5<br> <u>[Supplemental Indenture No. 2, dated as of 6 September 2019, by and among B.A.T Capital Corporation, the Guarantors party thereto and](https://www.sec.gov/Archives/edgar/data/1303523/000095015719000966/ex4-3.htm)</u><br><u>[Citibank, N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000095015719000966/ex4-3.htm)</u><sup>6</sup><br>|
| 2.6<br> <u>[Supplemental Indenture No. 3, dated as of 6 September 2019, by and among B.A.T Capital Corporation, the Guarantors party thereto and](https://www.sec.gov/Archives/edgar/data/1303523/000095015719000966/ex4-4.htm)</u><br><u>[Citibank, N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000095015719000966/ex4-4.htm)</u><sup>7</sup><br>|
| 2.7<br> <u>[Supplemental Indenture No. 4, dated as of 6 September 2019, by and among B.A.T Capital Corporation, the Guarantors party thereto and](https://www.sec.gov/Archives/edgar/data/1303523/000095015719000966/ex4-5.htm)</u><br><u>[Citibank, N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000095015719000966/ex4-5.htm)</u><sup>8</sup><br>|
| 2.8<br> <u>[Supplemental Indenture No. 5, dated as of 2 April 2020, by and among B.A.T Capital Corporation, the Guarantors party thereto and Citibank,](https://www.sec.gov/Archives/edgar/data/1303523/000095015720000462/ex4-1.htm)</u><br><u>[N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000095015720000462/ex4-1.htm)</u><sup>9</sup><br>|
| 2.9<br> <u>[Supplemental Indenture No. 6, dated as of 2 April 2020, by and among B.A.T Capital Corporation, the Guarantors party thereto and Citibank,](https://www.sec.gov/Archives/edgar/data/1303523/000095015720000462/ex4-2.htm)</u><br><u>[N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000095015720000462/ex4-2.htm)</u><sup>10</sup><br>|
| 2.10<br> <u>[Supplemental Indenture No. 7, dated as of 2 April 2020, by and among B.A.T Capital Corporation, the Guarantors party thereto and Citibank,](https://www.sec.gov/Archives/edgar/data/1303523/000095015720000462/ex4-3.htm)</u><br><u>[N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000095015720000462/ex4-3.htm)</u><sup>11</sup><br>|
| 2.11<br> <u>[Supplemental Indenture No. 8, dated as of 25 September 2020, by and among B.A.T Capital Corporation, the Guarantors party thereto and](https://www.sec.gov/Archives/edgar/data/1303523/000095015720001174/ex4-2.htm)</u><br><u>[Citibank, N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000095015720001174/ex4-2.htm)</u><sup>12</sup><br>|
| 2.12<br> <u>[Supplemental Indenture No. 9, dated as of 25 September 2020, by and among B.A.T Capital Corporation, the Guarantors party thereto and](https://www.sec.gov/Archives/edgar/data/1303523/000095015720001174/ex4-3.htm)</u><br><u>[Citibank, N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000095015720001174/ex4-3.htm)</u><sup>13</sup><br>|
| 2.13<br> <u>[Supplemental Indenture No. 10, dated as of 25 September 2020, by and among B.A.T Capital Corporation, the Guarantors party thereto and](https://www.sec.gov/Archives/edgar/data/1303523/000095015720001174/ex4-4.htm)</u><br><u>[Citibank, N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000095015720001174/ex4-4.htm)</u><sup>14</sup><br>|
| 2.14<br> <u>[Supplemental Indenture No. 11, dated as of 25 September 2020, by and among B.A.T Capital Corporation, the Guarantors party thereto and](https://www.sec.gov/Archives/edgar/data/1303523/000095015720001174/ex4-5.htm)</u><br><u>[Citibank, N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000095015720001174/ex4-5.htm)</u><sup>15</sup><br>|
| 2.15<br> <u>[Supplemental Indenture No. 12, dated as of 16 March 2022, by and among B.A.T Capital Corporation, the Guarantors party thereto and Citibank,](https://www.sec.gov/Archives/edgar/data/1303523/000119312522076964/d332641dex41.htm)</u><br><u>[N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000119312522076964/d332641dex41.htm)</u><sup>16</sup><br>|
| 2.16<br> <u>[Supplemental Indenture No. 13, dated as of 16 March 2022, by and among B.A.T Capital Corporation, the Guarantors party thereto and Citibank,](https://www.sec.gov/Archives/edgar/data/1303523/000119312522076964/d332641dex42.htm)</u><br><u>[N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000119312522076964/d332641dex42.htm)</u><sup>17</sup><br>|
| 2.17<br> <u>[Supplemental Indenture No. 14, dated as of 24 March 2022, by and among B.A.T Capital Corporation, the Guarantors party thereto and Citibank,](https://www.sec.gov/Archives/edgar/data/1303523/000119312522083523/d277619dex41.htm)</u><br><u>[N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000119312522083523/d277619dex41.htm)</u><sup>18</sup><br>|
| 2.18<br> <u>[Supplemental Indenture No. 15, dated as of 19 October 2022, by and among B.A.T Capital Corporation, the Guarantors party thereto and](https://www.sec.gov/Archives/edgar/data/1303523/000119312522265030/d261327dex41.htm)</u><br><u>[Citibank, N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000119312522265030/d261327dex41.htm)</u><sup>19</sup><br>|
| 2.19<br> <u>[Supplemental Indenture No. 16, dated as of 2 August 2023, by and among B.A.T Capital Corporation, the Guarantors party thereto and Citibank,](https://www.sec.gov/Archives/edgar/data/1303523/000162828023026665/exhibit41-6xk.htm)</u><br><u>[N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000162828023026665/exhibit41-6xk.htm)</u><sup>20</sup><br>|
| 2.20<br> <u>[Supplemental Indenture No. 17, dated as of 2 August 2023, by and among B.A.T Capital Corporation, the Guarantors party thereto and Citibank,](https://www.sec.gov/Archives/edgar/data/1303523/000162828023026665/exhibit42-6xk.htm)</u><br><u>[N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000162828023026665/exhibit42-6xk.htm)</u><sup>21</sup><br>|
| 2.21<br> <u>[Supplemental Indenture No. 18, dated as of 2 August 2023, by and among B.A.T Capital Corporation, the Guarantors party thereto and Citibank,](https://www.sec.gov/Archives/edgar/data/1303523/000162828023026665/exhibit43-6xk.htm)</u><br><u>[N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000162828023026665/exhibit43-6xk.htm)</u><sup>22</sup><br>|
| 2.22<br> <u>[Supplemental Indenture No. 19, dated as of 2 August 2023, by and among B.A.T Capital Corporation, the Guarantors party thereto and Citibank,](https://www.sec.gov/Archives/edgar/data/1303523/000162828023026665/exhibit44-6xk.htm)</u><br><u>[N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000162828023026665/exhibit44-6xk.htm)</u><sup>23</sup><br>|
| 2.23<br> <u>[Supplemental Indenture No. 20, dated as of 20 February 2024, by and among B.A.T Capital Corporation, the Guarantors party thereto and](https://www.sec.gov/Archives/edgar/data/1303523/000162828024005509/a6-kxex41xsupplementalinde.htm)</u><br><u>[Citibank, N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000162828024005509/a6-kxex41xsupplementalinde.htm)</u><sup>24</sup><br>|
| 2.24<br> <u>[Supplemental Indenture No. 21, dated as of 20 February 2024, by and among B.A.T Capital Corporation, the Guarantors party thereto and](https://www.sec.gov/Archives/edgar/data/1303523/000162828024005509/a6-kxex42xsupplementalinde.htm)</u><br><u>[Citibank, N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000162828024005509/a6-kxex42xsupplementalinde.htm)</u><sup>25</sup><br>|
| 2.25<br> <u>[Supplemental Indenture No. 22, dated as of 13 March 2025, by and among B.A.T Capital Corporation, the Guarantors party thereto and Citibank,](https://www.sec.gov/Archives/edgar/data/1303523/000162828025012588/exhibit41-6xkmarch2025.htm)</u><br><u>[N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000162828025012588/exhibit41-6xkmarch2025.htm)</u><sup>26</sup><br>|
| 2.26<br> <u>[Supplemental Indenture No. 23, dated as of 13 March 2025, by and among B.A.T Capital Corporation, the Guarantors party thereto and Citibank,](https://www.sec.gov/Archives/edgar/data/1303523/000162828025012588/exhibit42-6xkmarch2025.htm)</u><br><u>[N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000162828025012588/exhibit42-6xkmarch2025.htm)</u><sup>27</sup><br>|
| 2.27<br> <u>[Supplemental Indenture No. 24, dated as of 13 March 2025, by and among B.A.T Capital Corporation, the Guarantors party thereto and Citibank,](https://www.sec.gov/Archives/edgar/data/1303523/000162828025012588/exhibit43-6xkmarch2025.htm)</u><br><u>[N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000162828025012588/exhibit43-6xkmarch2025.htm)</u><sup>28</sup><br>|
| 2.28<br> <u>[Supplemental Indenture No. 25, dated as of 22 September 2025, by and among B.A.T Capital Corporation, the Guarantors party thereto and](https://www.sec.gov/Archives/edgar/data/1303523/000162828025042286/exhibit41-6xk.htm)</u><br><u>[Citibank, N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000162828025042286/exhibit41-6xk.htm)</u><sup>29</sup><br>|

---

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| | |
|:---|:---|
| Exhibit <br>Number<br>| Description |
| 2.29 | <u>[Indenture, dated as of 25 September 2020, by and among B.A.T. International Finance p.l.c., the Guarantors party thereto and](https://www.sec.gov/Archives/edgar/data/1303523/000095015720001174/ex4-1.htm)</u><u>[Citibank, N.A., as](https://www.sec.gov/Archives/edgar/data/1303523/000095015720001174/ex4-1.htm)</u><br><u>[trustee, authentication agent, transfer agent, registrar, calculation agent and initial paying agent.](https://www.sec.gov/Archives/edgar/data/1303523/000095015720001174/ex4-1.htm)</u><sup>30</sup><br>|
| 2.30 | <u>[Supplemental Indenture No. 1, dated as of 25 September 2020, by and among B.A.T. International Finance p.l.c., the Guarantors party thereto](https://www.sec.gov/Archives/edgar/data/1303523/000095015720001174/ex4-6.htm)</u><br><u>[and Citibank, N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000095015720001174/ex4-6.htm)</u><sup>31</sup><br>|
| 2.31 | <u>[Supplemental Indenture No. 2, dated as of 16 March 2022, by and among B.A.T. International Finance p.l.c., the Guarantors party thereto and](https://www.sec.gov/Archives/edgar/data/1303523/000119312522076964/d332641dex43.htm)</u><br><u>[Citibank, N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000119312522076964/d332641dex43.htm)</u><sup>32</sup><br>|
| 2.32 | <u>[Supplemental Indenture No. 3, dated as of 2 August 2023, by and among B.A.T. International Finance p.l.c., the Guarantors party thereto and](https://www.sec.gov/Archives/edgar/data/1303523/000162828023026665/exhibit45-6xk.htm)</u><br><u>[Citibank, N.A., as Trustee.](https://www.sec.gov/Archives/edgar/data/1303523/000162828023026665/exhibit45-6xk.htm)</u><sup>33</sup><br>|
| 2.33 | <u>[Thirty-fourth Supplemental Trust Deed, dated 17 March 2022, by and among B.A.T. International Finance p.l.c., B.A.T Capital Corporation,](https://www.sec.gov/Archives/edgar/data/1303523/000119312522186774/d329246dex41.htm)</u><br><u>[B.A.T. Netherlands Finance B.V., British American Tobacco p.l.c. and the Law Debenture Trust Corporation p.l.c., further modifying the Trust](https://www.sec.gov/Archives/edgar/data/1303523/000119312522186774/d329246dex41.htm)</u><br><u>[Deed, dated as of 6 July 1998 (as previously modified and restated) relating to the US$3,000,000,000 (now £25,000,000,000) Euro Medium](https://www.sec.gov/Archives/edgar/data/1303523/000119312522186774/d329246dex41.htm)</u><br><u>[Term Note Programme.](https://www.sec.gov/Archives/edgar/data/1303523/000119312522186774/d329246dex41.htm)</u><sup>34</sup><br>|
| 2.34 | <u>[Description of Securities registered under Section 12 of the Exchange Act.](ex234_descriptionofsecur.htm)</u> |
| 4.1 | <u>[Rules of the British American Tobacco 2007 Long-Term Incentive Plan.](https://www.sec.gov/Archives/edgar/data/1303523/000119312517168591/d352136dex106.htm)</u><sup>35</sup> |
| 4.2 | <u>[Rules of the British American Tobacco 2016 Long-Term Incentive Plan (Amended and Restated as of 20 March 2023).](https://www.sec.gov/Archives/edgar/data/1303523/000130352324000024/ex42_2016ltipxamended202.htm)</u><sup>36</sup> |
| 4.3 | <u>[British American Tobacco p.l.c. Deferred Annual Share Bonus Scheme.](https://www.sec.gov/Archives/edgar/data/1303523/000119312517168591/d352136dex108.htm)</u><sup>37</sup> |
| 4.4 | <u>[Annex to British American Tobacco p.l.c. Deferred Annual Share Bonus Scheme.](https://www.sec.gov/Archives/edgar/data/1303523/000119312519075779/d688893dex46.htm)</u><sup>38</sup> |
| 4.5 | <u>[British American Tobacco p.l.c. 2019 Deferred Annual Share Bonus Scheme (Amended and Restated as of 20 March 2023).](https://www.sec.gov/Archives/edgar/data/1303523/000130352324000024/ex45_2019dsbsxamended202.htm)</u><sup>39</sup> |
| 4.6 | <u>[Rules of the British American Tobacco Restricted Share Plan (Amended and Restated as of 20 March 2023).](https://www.sec.gov/Archives/edgar/data/1303523/000130352324000024/ex46_rsprulesxamended202.htm)</u><sup>40</sup> |
| 4.7 | <u>[Deferred Compensation Plan for Directors of Reynolds American Inc. (Amended and Restated Effective 30 November 2007).](https://www.sec.gov/Archives/edgar/data/1275283/000095014408001414/g11863exv10w43.htm)</u><sup>41</sup> |
| 4.8  | <u>[Rules of the British American Tobacco Performance Share Plan.](https://www.sec.gov/Archives/edgar/data/1303523/000095015725000606/ex4-4.htm)</u><sup>42</sup> |
| 4.9 | <u>[Service Contract between British American Tobacco p.l.c. and Tadeu Marroco, dated as of 14 May 2023.](https://www.sec.gov/Archives/edgar/data/1303523/000130352324000024/ex48_ceoserviceagreement.htm)</u><sup>43</sup> |
| 4.10 | <u>[Master Settlement Agreement, referred to as the MSA, dated 23 November 1998, between the Settling States named in](https://www.sec.gov/Archives/edgar/data/83612/0001047469-98-042142.txt)</u><u>[the](https://www.sec.gov/Archives/edgar/data/83612/0001047469-98-042142.txt)</u><u>[MSA and the](https://www.sec.gov/Archives/edgar/data/83612/0001047469-98-042142.txt)</u><br><u>[Participating Manufacturers also named therein.](https://www.sec.gov/Archives/edgar/data/83612/0001047469-98-042142.txt)</u><sup>44</sup><br>|
| 4.11 | <u>[Settlement Agreement dated 25 August 1997, between the State of Florida and settling defendants in The State of Florida v.](https://www.sec.gov/Archives/edgar/data/83612/0000912057-97-030051.txt)</u><u>[American Tobacco](https://www.sec.gov/Archives/edgar/data/83612/0000912057-97-030051.txt)</u><br><u>[Co.](https://www.sec.gov/Archives/edgar/data/83612/0000912057-97-030051.txt)</u><sup>45</sup><br>|
| 4.12 | <u>[Comprehensive Settlement Agreement and Release dated 16 January 1998, between the State of Texas and settling defendants in The State of](https://www.sec.gov/Archives/edgar/data/83612/0001047469-98-002173.txt)</u><br><u>[Texas v. American Tobacco Co.](https://www.sec.gov/Archives/edgar/data/83612/0001047469-98-002173.txt)</u><sup>46</sup><br>|
| 4.13 | <u>[Settlement Agreement and Release in re: The State of Minnesota v. Philip Morris, Inc., by and among the State of Minnesota, Blue Cross and Blue](https://www.sec.gov/Archives/edgar/data/83612/0001047469-98-020580.txt)</u><br><u>[Shield of Minnesota and the various tobacco company defendants named therein, dated as of 8 May 1998.](https://www.sec.gov/Archives/edgar/data/83612/0001047469-98-020580.txt)</u><sup>47</sup><br>|
| 4.14 | <u>[Settlement Agreement and Stipulation for Entry of Consent Judgment in re: The State of Minnesota v. Philip Morris, Inc., by and among the State](https://www.sec.gov/Archives/edgar/data/83612/0001047469-98-020580.txt)</u><br><u>[of Minnesota, Blue Cross and Blue Shield of Minnesota and the various tobacco company defendants named therein, dated as of 8 May 1998.](https://www.sec.gov/Archives/edgar/data/83612/0001047469-98-020580.txt)</u><sup>48</sup><br>|
| 4.15 | <u>[Form of Consent Judgment by Judge Kenneth J. Fitzpatrick, Judge of District Court in re: The State of Minnesota v. Philip Morris, Inc.](https://www.sec.gov/Archives/edgar/data/83612/0001047469-98-020580.txt)</u><sup>49</sup> |
| 4.16 | <u>[Stipulation of Amendment to Settlement Agreement and for Entry of Agreed Order dated 2 July 1998, by and among the](https://www.sec.gov/Archives/edgar/data/83612/0001047469-98-031513.txt)</u><u>[Mississippi Defendants,](https://www.sec.gov/Archives/edgar/data/83612/0001047469-98-031513.txt)</u><br><u>[Mississippi and the Mississippi Counsel in connection with the Mississippi Action.](https://www.sec.gov/Archives/edgar/data/83612/0001047469-98-031513.txt)</u><sup>50</sup><br>|
| 4.17 | <u>[Stipulation of Amendment to Settlement Agreement and for Entry of Consent Decree dated 24 July 1998, by and among the](https://www.sec.gov/Archives/edgar/data/83612/0001047469-98-031513.txt)</u><u>[Texas Defendants,](https://www.sec.gov/Archives/edgar/data/83612/0001047469-98-031513.txt)</u><br><u>[Texas and the Texas Counsel in connection with the Texas Action.](https://www.sec.gov/Archives/edgar/data/83612/0001047469-98-031513.txt)</u><sup>51</sup><br>|
| 4.18 | <u>[Stipulation of Amendment to Settlement Agreement and for Entry of Consent Decree dated 11 September 1998, by and among the State of](https://www.sec.gov/Archives/edgar/data/83612/0001047469-98-040401.txt)</u><br><u>[Florida and the tobacco companies named therein.](https://www.sec.gov/Archives/edgar/data/83612/0001047469-98-040401.txt)</u><sup>52</sup><br>|
| 4.19 | <u>[Term Sheet agreed to by R. J. Reynolds Tobacco Company, an indirect subsidiary of Reynolds American Inc., certain other Participating](https://www.sec.gov/Archives/edgar/data/1275283/000119312513112650/d505144dex101.htm)</u><br><u>[Manufacturers, 17 states, the District of Columbia and Puerto Rico.](https://www.sec.gov/Archives/edgar/data/1275283/000119312513112650/d505144dex101.htm)</u><sup>53</sup><br>|
| 4.20\* | <u>[Revolving credit facilities agreement, dated 6 November 2025, among British American Tobacco p.l.c., B.A.T. International Finance p.l.c.,](ex420_rcf.htm)</u><br><u>[B.A.T. Netherlands Finance B.V. and B.A.T Capital Corporation, as borrowers, British American Tobacco p.l.c., as guarantor, HSBC Bank plc,](ex420_rcf.htm)</u><br><u>[as agent and euro swingline agent, HSBC Bank USA, National Association, as US$ swingline agent, and certain banks and financial institutions,](ex420_rcf.htm)</u><br><u>[as banks.](ex420_rcf.htm)</u><br>|
| 4.21\*\* | <u>[Settlement Agreement dated February 1, 2024 between Nicoventures Trading Limited and Philip Morris Products S.A.](https://www.sec.gov/Archives/edgar/data/1303523/000095015724000140/ex99-1.htm)</u><sup>54</sup> |
| 4.22\* | <u>[Fourth Amended and Restated Court-Appointed Mediator's and Monitor's CCAA Plan of Compromise and Arrangement as amended on 27](ex422_ccaa.htm)</u><br><u>[August 2025.](ex422_ccaa.htm)</u><br>|
| 8 | <u>[List of Subsidiaries.](a2025fy-ex8xsubsidiariesun.htm)</u> |
| 11.1 | <u>[Code of Ethics.](https://www.sec.gov/Archives/edgar/data/1303523/000119312522068869/d208089dex11.htm)</u><sup>55</sup> |
| 11.2 | <u>[British American Tobacco Code for Share Dealing.](https://www.sec.gov/Archives/edgar/data/1303523/000130352325000021/a2024fy-ex112xsharedealing.htm)</u><sup>56</sup> |
| 12 | <u>[Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](a2025fy-exhibit12.htm)</u> |
| 13 | <u>[Certification under Section 906 of the Sarbanes-Oxley Act of 2002.](a2025fy-exhibit13.htm)</u><sup>57</sup> |
| 15 | <u>[Consent of KPMG LLP, independent registered public accounting firm.](ex15consent.htm)</u> |
| 17 | <u>[Guarantor Subsidiaries of the Registrant (included as part of Exhibit 2.34).](ex234_descriptionofsecur.htm)</u> |
| 97 | <u>[BAT Group Malus and Clawback Policy for Senior Executives.](https://www.sec.gov/Archives/edgar/data/1303523/000130352324000024/ex97_malusandclawback.htm)</u><sup>58</sup> |
| 101 | Interactive Data Files (formatted in XBRL and furnished electronically). |

---

**Notes:**

1. Incorporated by reference to Exhibit 99.1 to British American Tobacco p.l.c.'s Form 6-K filed on 19 April 2023.

2. Incorporated by reference to Exhibit 4.1 to BAT's Registration Statement on Form S-8 (Reg. No. 333-237186) filed on 16 March 2020.

British American Tobacco p.l.c. Form 20-F 2025<br>

3. Incorporated by reference to Exhibit 2.4 to BAT's Annual Report on Form 20-F for the year ended 31 December 2017 filed on 15 March 2018.

4. Incorporated by reference to Exhibit 4.2 to BAT's Registration Statement on Form F-4 (Reg. No. 333-227658) filed on 2 October 2018.

5. Incorporated by reference to Exhibit 4.1 to British American Tobacco p.l.c.'s Form 6-K filed on 6 September 2019.

6. Incorporated by reference to Exhibit 4.3 to British American Tobacco p.l.c.'s Form 6-K filed on 6 September 2019.

7. Incorporated by reference to Exhibit 4.4 to British American Tobacco p.l.c.'s Form 6-K filed on 6 September 2019.

8. Incorporated by reference to Exhibit 4.5 to British American Tobacco p.l.c.'s Form 6-K filed on 6 September 2019.

9. Incorporated by reference to Exhibit 4.1 to British American Tobacco p.l.c.'s Form 6-K filed on 2 April 2020.

10. Incorporated by reference to Exhibit 4.2 to British American Tobacco p.l.c.'s Form 6-K filed on 2 April 2020.

11. Incorporated by reference to Exhibit 4.3 to British American Tobacco p.l.c.'s Form 6-K filed on 2 April 2020.

12. Incorporated by reference to Exhibit 4.2 to British American Tobacco p.l.c.'s Form 6-K filed on 25 September 2020.

13. Incorporated by reference to Exhibit 4.3 to British American Tobacco p.l.c.'s Form 6-K filed on 25 September 2020.

14. Incorporated by reference to Exhibit 4.4 to British American Tobacco p.l.c.'s Form 6-K filed on 25 September 2020.

15. Incorporated by reference to Exhibit 4.5 to British American Tobacco p.l.c.'s Form 6-K filed on 25 September 2020.

16. Incorporated by reference to Exhibit 4.1 to British American Tobacco p.l.c.'s Form 6-K filed on 16 March 2022.

17. Incorporated by reference to Exhibit 4.2 to British American Tobacco p.l.c.'s Form 6-K filed on 16 March 2022.

18. Incorporated by reference to Exhibit 4.1 to British American Tobacco p.l.c.'s Form 6-K filed on 24 March 2022.

19. Incorporated by reference to Exhibit 4.1 to British American Tobacco p.l.c.'s Form 6-K filed on 19 October 2022.

20. Incorporated by reference to Exhibit 4.1 to British American Tobacco p.l.c.'s Form 6-K filed on 2 August 2023.

21. Incorporated by reference to Exhibit 4.2 to British American Tobacco p.l.c.'s Form 6-K filed on 2 August 2023.

22. Incorporated by reference to Exhibit 4.3 to British American Tobacco p.l.c.'s Form 6-K filed on 2 August 2023.

23. Incorporated by reference to Exhibit 4.4 to British American Tobacco p.l.c.'s Form 6-K filed on 2 August 2023.

24. Incorporated by reference to Exhibit 4.1 to British American Tobacco p.l.c.'s Form 6-K filed on 20 February 2024.

25. Incorporated by reference to Exhibit 4.2 to British American Tobacco p.l.c.'s Form 6-K filed on 20 February 2024.

26. Incorporated by reference to Exhibit 4.1 to British American Tobacco p.l.c.'s Form 6-K filed on 13 March 2025.

27. Incorporated by reference to Exhibit 4.2 to British American Tobacco p.l.c.'s Form 6-K filed on 13 March 2025.

28. Incorporated by reference to Exhibit 4.3 to British American Tobacco p.l.c.'s Form 6-K filed on 13 March 2025.

29. Incorporated by reference to Exhibit 4.1 to British American Tobacco p.l.c.'s Form 6-K filed on 22 September 2025.

30. Incorporated by reference to Exhibit 4.1 to British American Tobacco p.l.c.'s Form 6-K filed on 25 September 2020.

31. Incorporated by reference to Exhibit 4.6 to British American Tobacco p.l.c.'s Form 6-K filed on 25 September 2020.

32. Incorporated by reference to Exhibit 4.3 to British American Tobacco p.l.c.'s Form 6-K filed on 16 March 2022.

33. Incorporated by reference to Exhibit 4.5 to British American Tobacco p.l.c.'s Form 6-K filed on 2 August 2023.

34. Incorporated by reference to Exhibit 4.1 to British American Tobacco p.l.c.'s Registration Statement on Form F-3 (Reg. No. 333-265958) filed on 1 July 2022.

35. Incorporated by reference to Exhibit 10.6 to BAT's Registration Statement on Form F-4 (Reg. No. 333-217939) filed on 12 May 2017.

36. Incorporated by reference to Exhibit 4.2 to BAT's Annual Report on Form 20-F for the year ended 31 December 2023 filed on 9 February 2024.

37. Incorporated by reference to Exhibit 10.8 to BAT's Registration Statement on Form F-4 (Reg. No. 333-217939) filed on 12 May 2017.

38. Incorporated by reference to Exhibit 4.6 to BAT's Annual Report on Form 20-F for the year ended 31 December 2018 filed on 15 March 2019.

39. Incorporated by reference to Exhibit 4.5 to BAT's Annual Report on Form 20-F for the year ended 31 December 2023 filed on 9 February 2024.

40. Incorporated by reference to Exhibit 4.6 to BAT's Annual Report on Form 20-F for the year ended 31 December 2023 filed on 9 February 2024.

41. Incorporated by reference to Exhibit 10.43 to Reynolds American Inc.'s Annual Report on Form 10-K for the fiscal year ended 31 December 2007 filed on 27 February 2008.

42. Incorporated by reference to Exhibit 4.4 to BAT's Registration Statement on Form S-8 (Reg. No. 333-289164) filed on 1 August 2025.

43. Incorporated by reference to Exhibit 4.8 to BAT's Annual Report on Form 20-F for the year ended 31 December 2023 filed on 9 February 2024.

44. Incorporated by reference to Exhibit 4 to R.J. Reynolds Tobacco Holdings, Inc.'s Form 8-K dated 24 November 1998.

45. Incorporated by reference to Exhibit 2 to R.J. Reynolds Tobacco Holdings, Inc.'s Form 8-K dated 5 September 1997.

46. Incorporated by reference to Exhibit 2 to R.J. Reynolds Tobacco Holdings, Inc.'s Form 8-K dated 27 January 1998.

47. Incorporated by reference to Exhibit 99.1 to R.J. Reynolds Tobacco Holdings, Inc.'s Quarterly Report on Form 10-Q for the quarter ended 30 March 1998 filed on 15 May 1998.

48. Incorporated by reference to Exhibit 99.2 to R.J. Reynolds Tobacco Holdings, Inc.'s Quarterly Report on Form 10-Q for the quarter ended 30 March 1998 filed on 15 May 1998.

49. Incorporated by reference to Exhibit 99.3 to R.J. Reynolds Tobacco Holdings, Inc.'s Quarterly Report on Form 10-Q for the quarter ended 30 March 1998 filed on 15 May 1998.

50. Incorporated by reference to Exhibit 99.2 to R.J. Reynolds Tobacco Holdings, Inc.'s Quarterly Report on Form 10-Q for the quarter ended 30 June 1998 filed on 14 August 1998.

51. Incorporated by reference to Exhibit 99.4 to R.J. Reynolds Tobacco Holdings, Inc.'s Quarterly Report on Form 10-Q for the quarter ended 30 June 1998 filed on 14 August 1998.

52. Incorporated by reference to Exhibit 99.1 to R.J. Reynolds Tobacco Holdings, Inc.'s Quarterly Report on Form 10-Q for the quarter ended 30 September 1998 filed on 12 November 1998.

53. Incorporated by reference to Exhibit 10.1 to Reynolds American Inc.'s Form 8-K dated 18 March 2013.

54. Incorporated by reference to Exhibit 99.1 to British American Tobacco p.l.c.'s Form 6-K filed on 8 February 2024.

55. Incorporated by reference to Exhibit 11 to BAT's Annual Report on Form 20-F for the year ended 31 December 2021 filed on 8 March 2022.

56. Incorporated by reference to Exhibit 11.2 to BAT's Annual Report on Form 20-F for the year ended 31 December 2024 filed on 14 February 2025.

57. These certifications are furnished only and are not filed as part of BAT's Form 20-F for the year ended 31 December 2025.

58. Incorporated by reference to Exhibit 97 to BAT's Annual Report on Form 20-F for the year ended 31 December 2023 filed on 9 February 2024.

Certain instruments which define the rights of holders of long-term debt issued by BAT and its subsidiaries are not being filed because the total amount of securities authorised under each

such instrument does not exceed 10% of the total consolidated assets of BAT and its subsidiaries. BAT agrees to furnish copies of any or all such instruments to the SEC on request.

\* Schedules to the exhibit have been omitted. BAT agrees to furnish any omitted schedules to the SEC upon request.

\*\* Portions of the exhibit have been omitted because they are both (i) not material and (ii) of the type of information that the Company treats as private or confidential.

British American Tobacco p.l.c. Form 20-F 2025<br>

**Signatures**

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign

this annual report on its behalf.

By:/s/ Caroline Ferland

Name:Caroline Ferland

Title:Company Secretary

## Exhibit 2.34

![](ex234_descriptionofsecur001.jpg)

Exhibit 2.34 Description of Securities Registered under Section 12 of the Securities Exchange Act of 1934 (the "Exchange Act") As of December 31, 2025, British American Tobacco p.l.c. ("BAT", the "Company", "we", "us" and "our") had the following series of securities registered pursuant to Section 12(b) of the Exchange Act: Title of each class Trading Symbol(s) Name of exchange on which registered American Depositary Shares (evidenced by American Depositary Receipts) each representing one ordinary share BTI New York Stock Exchange Ordinary shares, nominal value 25 pence per share BTI New York Stock Exchange\* 4.625% Notes due 2033 BTI33A New York Stock Exchange 5.350% Notes due 2032 BTI32B New York Stock Exchange 5.625% Notes due 2035 BTI35 New York Stock Exchange 6.250% Notes due 2055 BTI55 New York Stock Exchange 5.834% Notes due 2031 BTI31A New York Stock Exchange 6.000% Notes due 2034 BTI34 New York Stock Exchange 5.931% Notes due 2029 BTI29A New York Stock Exchange 6.343% Notes due 2030 BTI30A New York Stock Exchange 6.421% Notes due 2033 BTI33 New York Stock Exchange 7.079% Notes due 2043 BTI43 New York Stock Exchange 7.081% Notes due 2053 BTI53 New York Stock Exchange 7.750% Notes due 2032 BTI32A New York Stock Exchange 4.742% Notes due 2032 BTI32 New York Stock Exchange 5.650% Notes due 2052 BTI52 New York Stock Exchange 4.448% Notes due 2028 BTI28A New York Stock Exchange 2.259% Notes due 2028 BTI28 New York Stock Exchange 2.726% Notes due 2031 BTI31 New York Stock Exchange 3.734% Notes due 2040 BTI40 New York Stock Exchange 3.984% Notes due 2050 BTI50A New York Stock Exchange 1.668% Notes due 2026 BTI26A New York Stock Exchange 4.700% Notes due 2027 BTI27A New York Stock Exchange 4.906% Notes due 2030 BTI30 New York Stock Exchange 5.282% Notes due 2050 BTI50 New York Stock Exchange 3.215% Notes due 2026 BTI26 New York Stock Exchange 3.462% Notes due 2029 BTI29 New York Stock Exchange 4.758% Notes due 2049 BTI49 New York Stock Exchange 3.557% Notes due 2027 BTI27 New York Stock Exchange 4.390% Notes due 2037 BTI37 New York Stock Exchange 4.540% Notes due 2047 BTI47 New York Stock Exchange \* Listed, not for trading, but only in connection with the listing of the applicable Registrant's American Depositary Shares issued in respect thereof. BAT is the issuer of the ordinary shares and the ordinary shares represented by the American Depositary Shares, as described below. The rest of the securities registered pursuant to Section 12(b) of the Exchange 2 Act described herein were issued by either B.A.T. International Finance p.l.c. ("BATIF") or B.A.T Capital Corporation ("BATCAP"), wholly-owned finance subsidiaries of BAT. BAT is a guarantor and co-registrant of the securities issued by each of BATIF and BATCAP described herein. BAT's ordinary shares and American Depositary Shares are described below under "Description of BAT Ordinary Shares and American Depositary Shares". BATIF's 5.931% Notes due 2029, 4.448% Notes due 2028 and 1.668% Notes due 2026 are described below under "Description of the Notes Issued Under the BATIF Indenture". BATCAP's 4.625% Notes due 2033, 5.350% Notes due 2032, 5.625% Notes due 2035, 6.250% Notes due 2055, 5.834% Notes due 2031, 6.000% Notes due 2034, 6.343% Notes due 2030, 6.421% Notes due 2033, 7.079% Notes due 2043, 7.081% Notes due 2053, 7.750% Notes due 2032, 4.742% Notes due 2032, 5.650% Notes due 2052, 2.259% Notes due 2028, 2.726% Notes due 2031, 3.734% Notes due 2040, 3.984% Notes due 2050, 4.700% Notes due 2027, 4.906% Notes due 2030, 5.282% Notes due 2050, 3.215% Notes due 2026, 3.462% Notes due 2029 and 4.758% Notes due 2049 are described below under "Description of the Notes Issued Under the 2019 BATCAP Indenture". BATCAP's 3.557% Notes due 2027, 4.390% Notes due 2037 and 4.540% Notes due 2047 are described below under "Description of the Notes Issued Under the 2017 BATCAP Indenture". Capital terms used but not defined herein have the meanings given to them in BAT's Annual Report on Form 20-F for the fiscal year ended December 31, 2025. Terms that are defined below retain such definitions solely for purposes of the relevant description of securities. A. Guarantor Subsidiaries of the Registrant BATCAP, B.A.T. Netherlands Finance B.V. ("BATNF") and, unless its guarantee is released in accordance with the BATIF Indenture (as defined below), Reynolds American Inc. ("RAI"), each of which is an indirect 100% owned subsidiary of BAT, have fully and unconditionally guaranteed (along with BAT) BATIF's obligations under the following senior unsecured notes issued by BATIF, which is a direct 100% owned subsidiary of BAT, under the BATIF Indenture: • 5.931% Notes due 2029; • 4.448% Notes due 2028; and • 1.668% Notes due 2026. BATIF, BATNF and, unless its guarantee is released in accordance with the 2019 BATCAP Indenture (as defined below), RAI have fully and unconditionally guaranteed (along with BAT) BATCAP's obligations under the following senior unsecured notes issued by BATCAP, under the 2019 BATCAP Indenture: • 4.625% Notes due 2033; • 5.350% Notes due 2032; • 5.625% Notes due 2035; • 6.250% Notes due 2055; • 5.834% Notes due 2031; • 6.000% Notes due 2034; 3 • 6.343% Notes due 2030; • 6.421% Notes due 2033; • 7.079% Notes due 2043; • 7.081% Notes due 2053; • 7.750% Notes due 2032; • 4.742% Notes due 2032; • 5.650% Notes due 2052; • 2.259% Notes due 2028; • 2.726% Notes due 2031; • 3.734% Notes due 2040; • 3.984% Notes due 2050; • 4.700% Notes due 2027; • 4.906% Notes due 2030; • 5.282% Notes due 2050; • 3.215% Notes due 2026; • 3.462% Notes due 2029; and • 4.758% Notes due 2049. BATIF, BATNF, British American Tobacco Holdings (The Netherlands) B.V. ("BATHTN"), which is an indirect 100% owned subsidiary of BAT, and, unless its guarantee is released in accordance with the 2017 BATCAP Indenture (as defined below), RAI have fully and unconditionally guaranteed (along with BAT) BATCAP's obligations under the following senior unsecured notes issued by BATCAP, under the 2017 BATCAP Indenture: • 3.557% Notes due 2027; • 4.390% Notes due 2037; and • 4.540% Notes due 2047. 4 B. Description of BAT Ordinary Shares and American Depositary Shares DESCRIPTION OF BAT ORDINARY SHARES The following is a summary of the material terms of (1) the BAT ordinary shares as set forth in the BAT articles of association; (2) English law insofar as it applies to the BAT ordinary shares; and (3) the BAT articles of association, which were adopted pursuant to a special resolution (as defined below) on April 19, 2023. Please note that this is only a summary, and may not contain all of the relevant information. BAT Articles of Association BAT is registered in England and Wales under the UK Companies Act 2006 with company registration number 3407696. BAT's purposes and objects are not restricted. Share Capital As at December 31, 2025, the issued and fully paid share capital of BAT was 2,312,454,501 ordinary shares, each with a nominal value of 25 pence. Of this number, 132,988,352 ordinary shares were registered as treasury shares. There are no acquisition rights or obligations in relation to the issue of BAT ordinary shares in the capital of BAT or an undertaking to increase the capital of BAT. There are no convertible securities, exchangeable securities or securities with warrants in BAT. BAT ordinary shares are fully paid and, accordingly, no further contribution of capital may be required by BAT from the holders of BAT ordinary shares. Further Issuances of Share Capital and Preemptive Rights Pursuant to the UK Companies Act 2006, BAT's directors are, with certain exceptions, not permitted to allot any equity securities without express authorization from BAT's shareholders. Further, under the UK Companies Act 2006, BAT may not issue shares for cash (other than pursuant to an employee share scheme) without first making an offer to existing shareholders to allot such shares to them on the same or more favorable terms in proportion to their respective shareholdings, unless this requirement is waived by a special resolution of the shareholders. See "—Voting Rights" for an explanation of the requirements for approval of a special resolution. Subject to receipt of authorization from BAT's shareholders, the directors may issue shares with such rights or restrictions, including shares that are redeemable at the option of BAT or the shareholder, as the directors or BAT by ordinary resolution may determine. In the event that rights and restrictions attaching to shares are determined by the directors or ordinary resolution, as set out in the preceding sentence, those rights and restrictions shall apply, in particular in place of any rights or restrictions that would otherwise apply by virtue of the Companies Act 2006 in the absence of any provisions in the BAT articles of associations, as if those rights and restrictions were set out therein. See "—Voting Rights" for an explanation of the requirements for approval of an ordinary resolution. Throughout this section, references to shares of BAT refer to any shares that may be issued out of the capital of BAT, including BAT ordinary shares. Changes to the Share Capital Shareholder approval by ordinary resolution is required for BAT to:

------

![](ex234_descriptionofsecur002.jpg)

5 • consolidate and divide all or any of its share capital into shares of a larger nominal amount than its existing shares; • sub-divide its shares, or any of them, into shares of a smaller nominal amount than its existing shares; and • determine that, as between the shares resulting from such a sub-division, any of the shares may have any preference or advantage as compared with the other classes of share. The UK Companies Act 2006 contains the procedural requirements for a reduction of capital. The reduction of capital must be approved by shareholders by special resolution, and must be approved by a court. The decision to approve the reduction is at the court's discretion, and it will consider whether (a) the reduction is for a discernible purpose, (b) all shareholders are treated equally, (c) the reduction has been properly explained to shareholders and (d) the company's creditors are safeguarded. Subject to these requirements, BAT may reduce its share capital, its capital redemption reserve and any share premium account in any way. Repurchase of Shares Once approved by BAT shareholders by ordinary resolution and subject to certain procedural requirements of the UK Companies Act 2006, BAT may repurchase its own shares, including any BAT ordinary shares and any redeemable shares that may be issued. Any shares which have been repurchased may be held as treasury shares or, if not so held, must be canceled immediately upon the completion of the purchase, thereby reducing the amount of BAT's issued share capital. Dividends BAT shareholders may by ordinary resolution declare dividends in accordance with the respective rights of the shareholders but no dividends shall exceed the amount recommended by the directors. No dividend shall be paid other than out of profits available for distribution as specified in the UK Companies Act 2006. The directors may pay interim dividends or dividends payable at a fixed rate, if it appears to them that they are justified by the profits of BAT available for distribution. If the directors act in good faith, they shall not incur any liability to the holders of shares conferring preferred rights for any loss they may suffer by the lawful payment of an interim dividend on any shares having deferred or non- preferred rights, including the BAT ordinary shares. BAT ordinary shares carry the right to receive dividends and distributions that have been declared by BAT on a pro rata basis but have no other right to share in the profits of BAT and are not entitled to any fixed income. BAT may issue shares that rank prior to the BAT ordinary shares in respect of payment of dividends. BAT shareholders may, at a general meeting declaring a dividend, upon the recommendation of the directors and by ordinary resolution, direct that the payment of all or any part of the dividend be satisfied by the distribution of specific assets and, where any difficulty arises in regard to the distribution, the directors may settle the same as they think fit. The directors may, with the approval of BAT shareholders by ordinary resolution, offer any holders of BAT ordinary shares the right to elect to receive BAT ordinary shares, credited as fully paid, instead of cash in respect of the whole (or some part, to be determined by the directors) of any dividend. BAT or the directors may fix a date and time as the record date by reference to which persons registered as holders of shares or other securities shall be entitled to receipt of any dividend, distribution, allotment or issue made, 6 and that date may be before, on or after the date on which the dividend, distribution, allotment or issue is declared. No dividend or other money payable in respect of a share shall bear interest against BAT, unless otherwise provided by the rights attached to the share. Dividends or other distributions paid in respect of BAT ordinary shares do not bear interest. The directors may elect to pay dividends solely by means of electronic transfer, or such other method as the directors deem appropriate and which method may be different for different holders or groups of holders of shares, to an account nominated in writing by the holder of the shares. Amounts due to shareholders who provide no, or invalid, account details may be held in an account in BAT's name until such shareholders nominate a valid account. BAT may cease sending dividend payments in respect of any shares if: • in respect of at least two consecutive dividends payable on that share, the cheque or warrant has been returned undelivered or remains uncashed by the shareholder, or another method of payment has failed; or • in respect of one dividend payable on that share, the cheque or warrant has been returned undelivered or remains uncashed by the shareholder, or another method of payment has failed, and reasonable inquiries have failed to establish a shareholder's new address or account; or • a shareholder does not specify an address, or does not specify an account of a type prescribed by the directors, or other details necessary in order to make a payment of a dividend by the means by which the directors have decided in accordance with BAT's Articles of Association that a payment is to be made, or by which the shareholder has elected to receive payment, and such address or details are necessary in order for BAT to make the relevant payment in accordance with such decision or election. BAT must recommence sending payments for dividends payable on that share if the person(s) entitled so request and have supplied in writing a new address or account to be used for that purpose. Any dividend which has remained unclaimed for 12 years from the date when it became due for payment will be forfeited and cease to remain owing by BAT and BAT will not be obliged to account to, or be liable in any respect to, the recipient or person who would have been entitled to the amount. Voting Rights All BAT ordinary shares have equal voting rights and shareholders, proxies and corporate representatives are entitled to attend and vote at all general meetings of BAT. BAT may issue, subject to the restrictions discussed above under the caption "—Share Capital—Further Issuances of Share Capital and Preemptive Rights" shares with preferential voting rights. This section assumes that all shares have equal voting rights and that no preferential shares are issued. Shareholders do not have cumulative voting rights. Under English law, resolutions to be voted on by shareholders at a general meeting can be either an ordinary resolution, which means that the resolution must be passed by a simple majority of shareholders or holders of a simple majority of the shares (depending on whether the vote is by a show of hands or by a poll) present in person or by proxy and entitled to vote at the general meeting, or a special resolution, which means that the resolution must be passed by a majority of not less than 75% of the shareholders or holders of 75% of the shares (depending on whether the vote is by a show of hands or by a poll) present in 7 person or by proxy and entitled to vote at the general meeting. For a resolution to be regarded as a special resolution, the notice of the general meeting must specify the intention to propose the resolution as a special resolution. A resolution put to the vote of a general meeting must be decided on a show of hands unless a poll is validly demanded. A poll on a resolution may be demanded either before a vote on a show of hands on that resolution or immediately after the result of a show of hands on that resolution is declared. A poll on a resolution may be demanded by: • the chair of the meeting; • a majority of the directors present at the meeting; • not less than five shareholders having the right to vote at the meeting; • a shareholder or shareholders representing not less than one-tenth of the total voting rights of all the shareholders having the right to vote at the meeting (excluding any voting rights attached to any shares in BAT held as treasury shares); or • a shareholder or shareholders holding shares conferring a right to vote on the resolution on which an aggregate sum has been paid up equal to not less than one-tenth of the total sum paid up on all the shares conferring that right (excluding any shares in BAT conferring a right to vote at the meeting which are held as treasury shares). On a show of hands, every shareholder who is present in person has one vote regardless of the number of shares held by such shareholder. Every proxy duly appointed by one or more shareholders entitled to vote on the resolution and present has one vote, except that if the proxy has been duly appointed by more than one shareholder entitled to vote and is instructed by one or more of those shareholders to vote for the resolution and by one or more others to vote against it, or is instructed by one or more of those shareholders to vote in one way and is given discretion as to how to vote by one or more others (and wishes to use that discretion to vote in the other way) they have one vote for and one vote against the resolution. On a poll every shareholder present in person or by duly appointed proxy has one vote for every share held by the shareholder. A shareholder or their duly appointed proxy entitled to more than one vote need not use all their votes or cast all the votes they use the same way. For the purposes of determining which persons are entitled to attend or vote at a general meeting, BAT may specify in the notice convening the meeting a time, not more than 48 hours before the time fixed for the meeting (not including any part of a day that is not a working day), by which a person must be entered on the register in order to have the right to attend or vote at the meeting. In the case of joint holders, the vote of the joint holder whose name appears first on the register of shareholders in respect of the joint holding shall be accepted to the exclusion of the votes of the other joint holders. If any shares are issued by BAT that are not fully paid, holders of those shares will not be permitted to vote at any general meeting or at any separate meeting of the holders of that class of shares, either in person or by proxy, unless all amounts presently payable by such holder in respect of that share have been paid. 8 There are no limitations under BAT's articles of association restricting the right of non-UK resident or foreign owners to hold or vote ordinary shares in BAT. Transfer of the Shares A share in certificated form may be transferred by an instrument of transfer which may be in any usual form or in any other form approved by the directors, executed by or on behalf of the transferor and, where the share is not fully paid, by or on behalf of the transferee. A share in uncertificated form may be transferred by means of the relevant system concerned. The transfer may not be in favor of more than four transferees. In their absolute discretion, the directors may refuse to register the transfer of a share in certificated form which is not fully paid provided that if the share is listed on the Official List of the Financial Conduct Authority such refusal does not prevent dealings in the shares from taking place on an open and proper basis. The directors may also refuse to register a transfer of a share in certificated form (whether fully paid or not) unless the instrument of transfer: • is lodged, duly stamped, at the registered office of BAT or such other place as the directors may appoint and is accompanied by the certificate for the share to which it relates and such other evidence as the directors may reasonably require to show the right of the transferor to make the transfer; • is in respect of only one class of share; and • is not in favor of more than four transferees. The directors may refuse to register a transfer of a share in uncertificated form to a person who is to hold it thereafter in certificated form in any case where BAT is entitled to refuse to register the transfer under the Uncertificated Securities Regulations 2001. If the directors refuse to register a transfer of a share, they shall as soon as practicable and in any event within two months after the date on which the transfer was lodged with BAT (in the case of a transfer of a share in certificated form) or the date on which the operator-instruction was received by BAT (in the case of a transfer of a share in uncertificated form which will be held thereafter in certificated form) send to the transferee notice of the refusal together with reasons for the refusal. The directors shall send to the transferee such further information about the reasons for the refusal to the transferee as the transferee may reasonably request. No fee shall be charged for the registration of any instrument of transfer or other document or instruction relating to or affecting the title to any share. For uncertificated shares, transfers shall be registered only in accordance with the terms of the Uncertificated Securities Regulations 2001. Distribution of Assets on a Winding-up If BAT is wound up, the liquidator may, with the sanction of a special resolution and any other sanction required by law, divide among the shareholders in specie the whole or any part of the assets of BAT and may, for that purpose, value any assets and determine how the division shall be carried out as between the shareholders or different classes of shareholders. The liquidator may, with the like sanction, vest the whole or any part of the assets in trustees upon such trusts for the benefit of the shareholders as they may

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9 with the like sanction determine, but no shareholder shall be compelled to accept any assets upon which there is a liability. Disclosure of Shareholding Ownership There are no provisions in BAT's articles of association whereby persons acquiring, holding or disposing of a certain percentage of BAT's ordinary shares are required to make disclosure of their ownership percentage, although there are such requirements under statute and regulation. Untraced Shareholders BAT is entitled to sell (at any time after becoming entitled to do so) any share held by a shareholder, or any share to which a person is entitled by transmission of the title of such share (including in consequence of the death or bankruptcy of the shareholder or otherwise by operation of law) if: • for a period of 12 years, no payment for amounts payable in respect of the share sent and payable in a manner authorized by the articles of association has been cashed or effected and no communication has been received by BAT from the shareholder or person concerned; • during that period at least three cash dividends (whether interim or final) have become payable on the share and no such dividend has been claimed by the shareholder or person concerned; • BAT has at any time after the expiration of that period sent a notice to the registered address or last known address of the shareholder or person concerned of its intention to sell such share and, before sending such notice, BAT has taken such steps as it considers reasonable in the circumstances to trace the shareholder or other person entitled, including engaging, if considered appropriate, in relation to such share, a professional asset reunification company or other tracing agent; and • BAT has not, during the further period of three months following the date of publication of sending of the notice referred to above and prior to the sale of the share received any communication from the member or person concerned. The net proceeds of sale of any shares as described above shall be forfeited and shall belong to BAT and BAT will not be obliged to account to the former shareholder or other person previously entitled to the share, or be liable to such persons in relation to, the proceeds of sale. If BAT sells a share pursuant to the above, any dividend or other money payable in respect of the share outstanding at the time of sale shall be forfeited and BAT shall not be obliged to account to, or be liable in any respect to, the recipient or person who would have been entitled to the amount. If, on three consecutive occasions, notices, documents or information sent or supplied to a shareholder have been returned undelivered, the shareholder shall not be entitled to receive any subsequent notice, document or information until they have supplied to BAT (or its agent) a new registered address, or a postal address within the United Kingdom or the Republic of South Africa, or shall have informed BAT of an electronic address. Variation of Rights If at any time the capital of BAT is divided into different classes of shares, the rights attached to any class may be varied, either while BAT is a going concern or during or in contemplation of a winding up in such manner (if any) as may be provided by those rights (depending on the drafting of those rights, they may 10 be more significant than is required by law) or if there are no such provisions either with the consent in writing of the holders of three-quarters in nominal value of the issued shares of that class (not including any treasury shares), or with the approval of shareholders by a special resolution passed at a separate meeting of the holders of such shares, but not otherwise. To every such separate meeting the provisions of the articles of association relating to general meetings shall apply, except that the quorum for any such meeting shall be two persons together holding or representing by proxy at least one-third in nominal value of the issued shares of the class in question (excluding treasury shares). At an adjourned meeting, the quorum shall be one person holding shares of the class in question (excluding treasury shares) or their proxy. Unless otherwise expressly provided by the rights attached to any class of shares, those rights shall be deemed not to be varied by the purchase by BAT of any of its own shares or the holding of such shares in treasury. Change of Control and Takeovers BAT is subject to the City Code on Takeovers and Mergers, which governs the conduct of mergers and takeovers in the UK. An English public limited company such as BAT may be acquired in a number of ways, including by means of a scheme of arrangement (as defined below) between the company and its shareholders or by means of a takeover offer. A scheme of arrangement is a statutory procedure under the UK Companies Act 2006 pursuant to which the English courts may approve an arrangement between an English company and some or all of its shareholders. In a scheme of arrangement, the company would make an initial application to the court to convene a meeting or meetings of its shareholders at which a majority in number of shareholders representing 75% of the voting rights of the shareholders present and voting either in person or by proxy at the meeting must agree to the arrangement by which they will sell their shares in exchange for the consideration being offered by the bidder. If the shareholders so agree, the company will return to court to request the court to sanction the arrangement. Upon such a scheme of arrangement becoming effective in accordance with its terms and the UK Companies Act 2006, it will bind the company and such shareholders. A takeover offer is an offer to acquire all of the outstanding shares of a company (other than shares which at the date of the offer are already held by the bidder). Under the City Code on Takeovers and Mergers and in order to compulsorily acquire the shares of dissenting shareholders, the offer must be made on identical terms to all holders of shares to which the offer relates. If the bidder, by virtue of acceptances of the offer, acquires or contracts to acquire not less than 90% in value of the shares to which the offer relates representing not less than 90% of the voting rights owned by the shares, the UK Companies Act 2006 allows the bidder to give notice to any non-accepting shareholder that the bidder intends to acquire his, her or its shares through a compulsory acquisition (also referred to as a squeeze out), and the shares of such nonaccepting shareholders will be acquired by the bidder six weeks later on the same terms as the offer, unless the shareholder objects to the English court and the court enters an order that the bidder is not entitled to acquire the shares or specifying terms of the acquisition different from those of the offer. The UK Companies Act 2006 permits a scheme of arrangement or takeover offer to be made relating only to a particular class or classes of a company's shares. 11 As BAT is a UK premium listed company, if it were subject to a takeover bid and the takeover were structured as a contractual takeover offer, under the UK Listing Rules a bidder would have to, by virtue of its shareholdings and acceptances of its takeover offer, acquire or agree to acquire shares carrying 75% of the voting rights of BAT before it could cancel BAT's listing on the Main Market of the LSE. Where the takeover is by way of a scheme of arrangement, the UK Listing Rules do not impose any additional rules as regards shareholder approval or the level of acceptances required before BAT could be delisted, as the scheme procedure provides sufficient protection for shareholders. There are no provisions in BAT's articles of association that would have the effect of delaying, deferring or preventing a takeover, or change of control, of BAT. Under English law, BAT's directors have a fiduciary duty to take only those actions that are in the interests of BAT and any anti-takeover devices employed by the directors in the future, if any, must accordingly be in the interests of BAT. However, under the City Code on Takeovers and Mergers, if an acquisition of BAT ordinary shares increases the aggregate holding of an acquirer and persons acting in concert with the acquirer (i.e., persons who, pursuant to an agreement or understanding, cooperate to obtain or consolidate control of a company or to frustrate the successful outcome of an offer for a company) to shares carrying 30% or more of the voting rights in BAT, the acquirer and, depending on the circumstances, its concert parties, would be required (except with the consent of the Panel on Takeovers and Mergers) to make a cash offer for the outstanding BAT ordinary shares at a price not less than the highest price paid for the BAT ordinary shares by the acquirer or its concert parties during the previous 12 months. This requirement would also be triggered by any acquisition of shares by a person holding (together with its concert parties) shares carrying between 30 and 50% of the voting rights in BAT if the effect of such acquisition were to increase that person's percentage of the voting rights. General Meetings An annual general meeting of shareholders must be held every year within a period of six months of the day following BAT's financial year end (which is December 31), at such place or places, date and time as may be decided by the directors. Ability to Call General Meetings The directors may call general meetings. If there are not sufficient directors to form a quorum in order to call a general meeting, any director may call a general meeting. If there is no director, any shareholder of BAT may call a general meeting. The directors are required to call a general meeting if requested by shareholders representing at least 5% of the paid-up capital of BAT as carries the right of voting at general meetings (excluding any paid-up capital held as treasury shares). Such meeting must be called within 21 days from the date on which the directors become subject to the requirement, and held on a date not more than 28 days after the date of the notice calling the meeting. A meeting called upon the request of shareholders may only deal with the business stated in the request by shareholders, or as proposed by the directors. If the directors fail to call the general meeting requested by the shareholders, the shareholders who requested the meeting, or any of them representing more than one half of the total voting rights of all of them, may themselves call a general meeting. Such meeting must be called for a date not more than three months after the date on which the directors become subject to the requirement to call a meeting. Any reasonable expenses 12 incurred by the shareholders requesting the meeting by reason of the failure of the directors duly to call a meeting must be reimbursed by the company. Notice of General Meetings Pursuant to the UK Companies Act 2006, an annual general meeting and all other general meetings of BAT must be called by at least 21 clear days' written notice (the "clear days" rule is set out in section 360 of the UK Companies Act 2006 and excludes the day of the meeting and the day that the notice is given). However, the UK Companies Act 2006 allows for this period of notice for meetings other than annual general meetings to be reduced to 14 clear days' notice provided that: (1) the company allows its shareholders to make proxy appointments via a website (such as one hosted by its share registrars); and (2) shareholders must pass a special resolution at the annual general meeting every year approving the shortening of the notice period to 14 days. A special resolution enabling BAT to hold general meetings (other than annual general meetings) on 14 clear days' notice was approved at the last annual general meeting held on April 16, 2025. The notice shall specify the place, the date and the time of meeting and the general nature of the business to be transacted, and in the case of an annual general meeting shall specify the meeting as such. Where BAT has given an electronic address in any notice of meeting, any document or information relating to proceedings at the meeting may be sent by electronic means to that address, subject to any conditions or limitations specified in the relevant notice of meeting. Subject to the provisions of the articles of association described above under "—Untraced shareholders" and to any rights or restrictions attached to any shares, notices shall be given to all shareholders, to all persons entitled to a share in consequence of the death or bankruptcy of a shareholder or otherwise by operation of law and to the BAT directors and to the BAT Group's auditors. Any notice to be given to a shareholder may be given by reference to the register of shareholders as it stands at any time within the period of 21 days before the notice is given; and no change in the register after that time shall invalidate the giving of the notice. A shareholder whose registered address is not within the United Kingdom or the Republic of South Africa shall be entitled to receive any notice, document or information from BAT if they give BAT an address (not being an electronic address) within the United Kingdom or the Republic of South Africa at which notices, documents or information may be sent or if the directors are satisfied that the sending or supplying of such notices, documents or information by BAT to such address outside of the United Kingdom or the Republic of South Africa would not result in BAT breaching any applicable law (whether in the United Kingdom, Republic of South Africa, or elsewhere) or result, directly or indirectly, in BAT being required to comply with additional filing or other regulatory requirements in the United Kingdom, the Republic of South Africa, or any other jurisdiction. Where, by reason of any suspension or curtailment of postal services, BAT is unable effectively to give notice of a general meeting or any meeting of the holders of any class of shares, the directors may decide that the only persons to whom notice of the affected general meeting must be sent are: the directors; BAT's auditors; those shareholders to whom notice to convene the general meeting can validly be sent by electronic means and those shareholders to whom notification as to the availability of the notice of meeting on a website can validly be sent by electronic means. In any case, BAT shall also: (a) advertise the general meeting in at least two national newspapers published in the United Kingdom; and (b) if at least seven clear days before the meeting the posting of notices again becomes practicable, send or supply a confirmatory copy of the notice to shareholders who were not sent the notice but would (but for this provision) have been entitled to receive the notice.

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13 Quorum No business shall be transacted at any general meeting unless a quorum is present. Two persons entitled to vote upon the business to be transacted, each being a shareholder or a proxy for a shareholder or a duly authorized representative of the corporation which is a shareholder (including for this purpose two persons who are proxies or corporate representatives of the same shareholder), shall be a quorum. Attendance at General Meetings All shareholders may attend, speak and vote at BAT general meetings (including annual general meetings). A shareholder is entitled to appoint another person as their proxy to exercise all or any of their rights to attend and to speak and vote at a meeting of BAT. The appointment of a proxy shall be deemed also to confer authority to demand or join in demanding a poll. Delivery of an appointment of proxy shall not preclude a shareholder from attending and voting at the meeting or at any adjournment of it. A proxy need not be a shareholder. A shareholder may appoint more than one proxy in relation to a meeting, provided that each proxy is appointed to exercise the rights attached to a different share or shares held by them. An appointment of proxy shall be in writing in any usual form or in any other form which the directors may approve and shall be executed by or on behalf of the appointor which in the case of a corporation may be either under its common seal or under the hand of a duly authorized officer or attorney or other person duly authorized for that purpose. Subject to the provisions of the UK Companies Act 2006, any corporation (other than BAT itself) which is a shareholder of BAT may, by resolution of its directors or other governing body, authorize such person(s) to act as its representative(s) at any meeting of BAT, or at any separate meeting of the holders of any class of shares. BAT may require such person(s) to produce a certified copy of the resolution before permitting them to exercise their powers. The directors may (and shall if and to the extent that BAT is required to do so by the UK Companies Act 2006) allow an appointment of proxy to be sent or supplied in electronic form subject to any conditions or limitations as the directors may specify. The directors or the chair of the meeting may direct that any person wishing to attend any general meeting should submit to and comply with such searches or other security arrangements as they or the chair of the meeting consider appropriate in the circumstances. The directors or the chair of the meeting may in their absolute discretion refuse entry to, or eject from, any general meeting any person who refuses to submit to a search or otherwise comply with such security arrangements. The directors or the chair of the meeting may take such action, give such direction or put in place such checks or arrangements as they or the chair of the meeting consider appropriate to secure the health and safety of the people attending the meeting or to promote the orderly conduct of the business of the meeting. Any decision of the chair of the meeting on matters of procedure or matters arising incidentally from the business of the meeting, and any determination by the chair of the meeting as to whether a matter is of such a nature, shall be final. The directors may make arrangements for simultaneous attendance and participation, by electronic means or otherwise, allowing persons not present together at the same place to attend, participate and vote at the meeting by using a satellite meeting place or places, including in particular if the place of meeting specified in the notice of meeting appears to the chair to be inadequate to accommodate all persons entitled and wishing to attend. The arrangements for simultaneous attendance and participation at any place at which persons are participating may include arrangements for controlling or regulating the level of attendance at any particular venue provided that such arrangements shall operate so that all shareholders and proxies wishing to attend the meeting are able to attend at one or other of the venues. 14 DESCRIPTION OF BAT AMERICAN DEPOSITARY SHARES Citibank, N.A. is the depositary bank for the BAT ADSs. Citibank's depositary offices are located at 388 Greenwich Street, New York, New York 10013. American Depositary Shares are frequently referred to as ADSs and represent ownership interests in securities that are on deposit with the depositary bank. ADSs may be represented by certificates that are commonly known as "American Depositary Receipts" or "ADRs." The depositary bank typically appoints a custodian to safekeep the securities on deposit. In this case, the custodian is Citibank, N.A., London Branch, located at Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB England. BAT has appointed Citibank as depositary bank pursuant to the deposit agreement. A copy of the second amended and restated deposit agreement is on file with the SEC under cover of a Registration Statement on Form F-6EF. A copy of the deposit agreement and each amendment thereto may be obtained from the SEC's website at www.sec.gov. Please refer to Registration Numbers 333-221983, 333-266484 and 333- 291935 when retrieving such copy. The following summarizes the material terms of the BAT ADSs and the material rights of owners of BAT ADSs. This summary does not purport to be complete and may not contain all of the important information about the BAT ADSs. The rights and obligations of an owner of BAT ADSs will be determined by reference to the terms of the deposit agreement and not by this summary. The portions of this summary description that are italicized describe matters that may be relevant to the ownership of BAT ADSs but that may not be contained in the deposit agreement. Each BAT ADS represents the right to receive, and to exercise the beneficial ownership interests in, one BAT ordinary share that is on deposit with the depositary bank and/or custodian. A BAT ADS also represents the right to receive, and to exercise the beneficial interests in, any other property (including cash) received by the depositary bank or the custodian on behalf of the owners of BAT ADSs but that has not been distributed to the owners of BAT ADSs because of legal restrictions or practical considerations. The BAT ordinary shares deposited with the depositary bank and/or the custodian and any and all other securities, property and cash held by the depositary bank and/or custodian in respect thereof are referred to as the deposited securities. BAT and the depositary bank may agree to change the ADS-to-BAT ordinary share ratio by amending the deposit agreement. This amendment may give rise to, or change, the depositary bank services fees payable by BAT ADS owners. The custodian, the depositary bank and their respective nominees will hold all deposited securities for the benefit of the holders (i.e., the persons in whose name the BAT ADSs are registered on the books of the depositary bank) and beneficial owners of BAT ADSs. The deposited securities do not constitute the proprietary assets of the depositary bank, the custodian or their nominees. Beneficial ownership in the deposited securities will under the terms of the deposit agreement be vested in the beneficial owners of the BAT ADSs. The depositary bank, the custodian and their respective nominees will be the record holders of the deposited securities represented by the BAT ADSs for the benefit of the holders and beneficial owners of the corresponding BAT ADSs. A beneficial owner of BAT ADSs may or may not be the holder of BAT ADSs. Beneficial owners of BAT ADSs will be able to receive any benefit in, and to exercise beneficial ownership interests in, the deposited securities only through the registered holders of the BAT ADSs, the registered holders of the BAT ADSs (on behalf of the applicable BAT ADS owners) only through the depositary bank, and the depositary bank (on behalf of the owners of the corresponding BAT ADSs) directly, or indirectly, through the custodian or their respective nominees, in each case upon the terms of the deposit agreement. The depositary bank and BAT may deem and treat the registered holder of an ADS as the absolute owner of such ADS for all purposes and neither the depositary bank nor BAT will have any obligation or be subject to any liability under the deposit agreement or any ADR to any holder or beneficial owner of ADSs unless, in the case of a holder of ADSs, such holder is the registered holder or, in the case of a beneficial owner, such beneficial owner or its representative is the registered holder. 15 Owners of BAT ADSs become party to the deposit agreement and therefore are bound to its terms and to the terms of any ADR that represents such BAT ADSs. The deposit agreement and the ADRs specify the rights and obligations of BAT as well as the rights and obligations of owners of BAT ADSs and those of the depositary bank. BAT ADS holders appoint the depositary bank to act on their behalf in certain circumstances. In addition, applicable laws and regulations may require BAT ADS holders to satisfy reporting requirements and obtain regulatory approvals in certain circumstances. BAT ADS holders are solely responsible for complying with such reporting requirements and obtaining such approvals. None of the depositary bank, the custodian, BAT or any of their respective agents or affiliates shall be required to take any actions whatsoever on behalf of BAT ADS holders to satisfy such reporting requirements or obtain such regulatory approvals under applicable laws and regulations. BAT will not treat an owner of BAT ADSs as one of its shareholders, and BAT ADS holders will not have direct shareholder rights. The depositary bank will hold the shareholder rights attached to the BAT ordinary shares underlying the BAT ADSs. Owners of BAT ADSs will be able to exercise the shareholders rights for the BAT ordinary shares represented by the BAT ADSs through the depositary bank only to the extent contemplated in the deposit agreement. To exercise any shareholder rights not contemplated in the deposit agreement a BAT ADS owner must arrange for the cancellation of their BAT ADSs and become a direct shareholder of BAT. An owner of BAT ADSs may hold its BAT ADSs either by means of an ADR registered in its name, through a brokerage or safekeeping account, or through an account established by the depositary bank in its name reflecting the registration of uncertificated BAT ADSs directly on the books of the depositary bank (commonly referred to as the direct registration system or DRS). The direct registration system reflects the uncertificated (book-entry) registration of ownership of BAT ADSs by the depositary bank. Under the direct registration system, ownership of BAT ADSs is evidenced by periodic statements issued by the depositary bank to the holders of the BAT ADSs. The direct registration system includes automated transfers between the depositary bank and the Depositary Trust Company, referred to as DTC. If a BAT ADS holder decides to hold BAT ADSs through a brokerage or safekeeping account, the holder must rely on the procedures of the broker or bank to assert its rights as BAT ADS owner. Banks and brokers typically hold securities such as the BAT ADSs through clearing and settlement systems such as DTC. The procedures of such clearing and settlement systems may limit a BAT ADS holder's ability to exercise its rights as an owner of BAT ADSs. All BAT ADSs held through DTC will be registered in the name of a nominee of DTC. The registration of the BAT ordinary shares in the name of the depositary bank or the custodian shall, to the maximum extent permitted by applicable law, vest in the depositary bank or the custodian the record ownership in the applicable BAT ordinary shares with the beneficial ownership rights and interests in such BAT ordinary shares being at all times vested with the beneficial owners of the BAT ADSs representing the BAT ordinary shares. The depositary bank or the custodian shall at all times be entitled to exercise the beneficial ownership rights in all deposited securities, in each case only on behalf of the holders and beneficial owners of the BAT ADSs representing the deposited securities. Dividends and Distributions Holders of BAT ADSs generally have the right to receive the distributions, including dividends, BAT makes on the deposited securities. Receipt of these distributions may be limited, however, by practical considerations and legal limitations. Holders of BAT ADSs will receive such distributions under the terms of the deposit agreement in proportion to the number of BAT ADSs held as of the specified record date, after deduction of the applicable fees, taxes and expenses. 16 Distributions of Cash Whenever BAT makes a cash distribution, including any cash dividend, on any deposited securities, it will deposit the funds with the custodian. Upon receipt of confirmation of the deposit of the requisite funds, the depositary bank will arrange for the funds received in a currency other than U.S. Dollars to be converted into U.S. Dollars and for the distribution of the U.S. Dollars to the holders, subject to the laws and regulations of England and Wales. The conversion into U.S. Dollars will take place only if practicable and if the U.S. Dollars are transferable to the United States. The depositary bank will apply the same method for distributing the proceeds of the sale of any property (such as undistributed rights) held by the custodian in respect of any deposited securities. For further information regarding the conversion of funds into U.S. Dollars, see "—Foreign Currency Conversion". The distribution of cash will be made net of the fees, expenses, taxes and governmental charges payable by holders under the terms of the deposit agreement. The depositary bank will hold any cash amounts it is unable to distribute in a non-interest bearing account for the benefit of the applicable holders and beneficial owners of BAT ADSs until the distribution can be effected or the funds that the depositary bank holds must be escheated as unclaimed property in accordance with the laws of the relevant states of the United States. Distributions of BAT Ordinary Shares Whenever BAT makes a free distribution, including any dividend, of BAT ordinary shares on the deposited securities, it will deposit the applicable number of BAT ordinary shares with the custodian. Upon receipt of confirmation of such deposit, the depositary bank will either distribute to holders new BAT ADSs representing the BAT ordinary shares deposited or modify the ADS-to-BAT ordinary share ratio, in which case each BAT ADS held will represent rights and interests in the additional BAT ordinary shares so deposited. Only whole new BAT ADSs will be distributed. Fractional entitlements will be sold and the proceeds of such sale will be distributed as in the case of a cash distribution. The distribution of new BAT ADSs or the modification of the ADS-to-BAT ordinary share ratio upon a distribution of BAT ordinary shares will be made net of the fees, expenses, taxes and governmental charges payable by holders under the terms of the deposit agreement. In order to pay such taxes or governmental charges, the depositary bank may sell all or a portion of the new BAT ordinary shares so distributed. No such distribution of new BAT ADSs will be made if it would violate a law (e.g., the U.S. securities laws). If the depositary bank does not distribute new BAT ADSs as described above, it may sell the BAT ordinary shares received upon the terms described in the deposit agreement and will distribute the proceeds of the sale as in the case of a distribution of cash. Distributions of Rights Whenever BAT intends to distribute to the holders of BAT ordinary shares rights to subscribe for additional BAT ordinary shares, it will give prior notice to the depositary bank and will assist the depositary bank in determining whether it is lawful and reasonably practicable to distribute rights to subscribe for additional BAT ADSs to holders. The depositary bank will establish procedures to distribute rights to subscribe for additional BAT ADSs to holders and to enable such holders to exercise such rights if it is lawful and reasonably practicable to

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17 make the rights available to holders of BAT ADSs, and if BAT provides all of the documentation contemplated in the deposit agreement (such as opinions to address the lawfulness of the transaction). BAT ADS holders may have to pay fees, expenses, taxes and other governmental charges to subscribe for the new BAT ADSs upon the exercise of their rights. The depositary bank is not obligated to establish procedures to facilitate the distribution and exercise by holders of rights to subscribe for new BAT ordinary shares other than in the form of BAT ADSs. The depositary bank will not distribute the rights to BAT ADS holders if: • BAT does not timely request that the rights be distributed to BAT ADS holders; • BAT requests that the rights not be distributed to BAT ADS holders; • BAT fails to deliver satisfactory documents to the depositary bank; or • it is not reasonably practicable to distribute the rights. The depositary bank, upon consultation with BAT, will sell the rights that are not exercised or not distributed if such sale is lawful and reasonably practicable. The proceeds of such sale, net of fees, expenses, taxes and governmental charges payable by holders under the terms of the deposit agreement, will be distributed to holders as in the case of a cash distribution. If the depositary bank is unable to sell the rights, it will allow the rights to lapse. Elective Distributions Whenever BAT intends to make a distribution, including any dividend, on BAT ordinary shares payable at the election of shareholders either in cash or in additional BAT ordinary shares, it will give prior notice thereof to the depositary bank and will indicate whether it wishes the elective distribution to be made available to BAT ADS holders. In such case, BAT will assist the depositary bank in determining whether such distribution is lawful and reasonably practicable. The depositary bank will make the election available to BAT ADS holders only if it is reasonably practicable and if BAT has provided all of the documentation contemplated in the deposit agreement. In such case, the depositary bank will establish procedures to enable BAT ADS holders to elect to receive either cash or additional BAT ADSs, in each case as described in the deposit agreement. If the election is not made available to BAT ADS holders, they will receive either cash or additional BAT ADSs, depending on what a shareholder in England and Wales would receive upon failing to make an election, as more fully described in the deposit agreement. Other Distributions Whenever BAT intends to distribute to the holders of BAT ordinary shares property other than cash, BAT ordinary shares or rights to subscribe for additional BAT ordinary shares, it will notify the depositary bank in advance and will indicate whether it wishes such distribution to be made to BAT ADS holders. If so, BAT will assist the depositary bank in determining whether such distribution to holders is lawful and reasonably practicable. If it is reasonably practicable to distribute such property to BAT ADS holders and if BAT provides to the depositary bank all of the documentation contemplated in the deposit agreement, the depositary bank will distribute the property to the holders in a manner it deems practicable. 18 The distribution will be made net of fees, expenses, taxes and governmental charges payable by holders under the terms of the deposit agreement. In order to pay such taxes and governmental charges, the depositary bank may sell all or a portion of the property received. The depositary bank will not distribute the property to BAT ADS holders and will sell the property if: • BAT does not request that the property be distributed to BAT ADS holders or if BAT requests that the property not be distributed to BAT ADS holders; • BAT does not deliver satisfactory documents to the depositary bank; or • the depositary bank determines that all or a portion of the distribution to BAT ADS holders is not reasonably practicable. The proceeds of such a sale will be distributed to holders as in the case of a cash distribution. Redemption Whenever BAT decides to redeem any of the deposited securities held by the custodian, it will notify the depositary bank in advance. If it is practicable and if BAT provides all of the documentation contemplated in the deposit agreement, the depositary bank will provide notice of the redemption to the holders. The custodian will be instructed to surrender the shares being redeemed against payment of the applicable redemption price for deposited securities. The depositary bank will convert any redemption funds received in a currency other than U.S. Dollars into U.S. Dollars upon the terms of the deposit agreement and will establish procedures to enable holders to receive the net proceeds from the redemption upon surrender of their BAT ADSs to the depositary bank. BAT ADS holders may have to pay fees, expenses, taxes and other governmental charges upon the redemption of their BAT ADSs. If less than all BAT ADSs are being redeemed, the BAT ADSs to be retired will be selected by lot or on a pro rata basis, as the depositary bank may determine. Changes Affecting Deposited Securities The deposited securities represented by BAT ADSs may change from time to time. For example, there may be a change in nominal or par value, split-up, cancellation, consolidation or any other reclassification of such deposited securities or a recapitalization, reorganization, merger, consolidation or sale of assets of BAT. If any such change were to occur, BAT ADSs would, to the extent permitted by law and the deposit agreement, represent the right to receive the property received or exchanged in respect of the deposited securities. In such circumstances, the depositary bank may, with BAT's approval and if BAT requests, deliver new BAT ADSs, amend the deposit agreement, the ADRs and the applicable Registration Statement(s) on Form F-6, call for the exchange of existing BAT ADSs for new BAT ADSs and take any other actions that are appropriate to reflect as to the BAT ADSs the change affecting the BAT ordinary shares. If the depositary bank may not lawfully distribute such property, the depositary bank may, with BAT's approval and if BAT requests, sell such property and distribute the net proceeds as in the case of a cash distribution. Issuance of BAT ADSs upon Deposit of BAT Ordinary Shares 19 The depositary bank may create BAT ADSs on behalf of a BAT ADS holder if it or its broker deposits BAT ordinary shares with the custodian. The depositary bank will deliver these BAT ADSs to the person indicated by the BAT ADS holder only after any applicable issuance fees and any charges and taxes payable for the transfer of the BAT ordinary shares to the custodian are paid. A BAT ADS holder's ability to deposit BAT ordinary shares and receive BAT ADSs may be limited by United States and England and Wales legal considerations applicable at the time of deposit. The issuance of BAT ADSs may be delayed until the depositary bank or the custodian receives confirmation that all required approvals have been given and that the BAT ordinary shares have been duly transferred to the custodian. The depositary bank will only issue BAT ADSs in whole numbers. When BAT ADS holders make a deposit of BAT ordinary shares, they will be responsible for transferring good and valid title to the depositary bank. As such, they will be deemed to represent and warrant that: • the BAT ordinary shares are duly authorized, validly issued, fully paid, non-assessable and legally obtained; • all preemptive (and similar) rights, if any, with respect to such BAT ordinary shares have been validly waived or exercised; • they are duly authorized to deposit the BAT ordinary shares; • the BAT ordinary shares presented for deposit are free and clear of any lien, encumbrance, security interest, charge, mortgage or adverse claim, and are not, and the BAT ADSs issuable upon such deposit will not be, "restricted securities" (as defined in the deposit agreement); and • the BAT ordinary shares presented for deposit have not been stripped of any rights or entitlements. If any of the representations or warranties are incorrect in any way, BAT and the depositary bank may, at the holder's cost and expense, take any and all actions necessary to correct the consequences of the misrepresentations. Transfer, Combination and Split Up of ADRs ADR holders will be entitled to transfer, combine or split up their ADRs and the BAT ADSs evidenced thereby. For transfers of ADRs, they will have to surrender the ADRs to be transferred to the depositary bank and also must: • ensure that the surrendered ADR is properly endorsed or otherwise in proper form for transfer; • provide any transfer stamps required by the State of New York or the United States; and • pay all applicable fees, charges, expenses, taxes and other government charges payable by ADR holders pursuant to the terms of the deposit agreement and applicable law, upon the transfer of ADRs. To have ADRs either combined or split up, BAT ADS holders must surrender the ADRs in question to the depositary bank with a request to have them combined or split up, and they must pay all applicable fees, charges, expenses, taxes and other government charges payable by ADR holders pursuant to the terms of the deposit agreement and applicable law, upon a combination or split up of ADRs. 20 The depositary bank may require a holder to provide proof of identity and genuineness of any signature and such other documents as the depositary bank may deem appropriate before it will transfer, combine or split up ADRs and the BAT ADSs evidenced thereby. BAT may restrict transfers of BAT ordinary shares where such transfer might result in ownership of BAT ordinary shares exceeding limits imposed by applicable law or the articles of association of BAT. BAT may also restrict, in such manner as it deems appropriate, transfers of BAT ADSs where such transfer may result in the total number of BAT ordinary shares represented by BAT ADSs owned by a single holder or beneficial owner to exceed any such limits. BAT may, in its sole discretion but subject to applicable law, instruct the depositary bank to take action with respect to the ownership interest of any holder or beneficial owner in excess of such limits, including the imposition of restrictions on the transfer of BAT ADSs, the removal or limitation of voting rights or mandatory sale or disposition on behalf of a holder or beneficial owner of the BAT ordinary shares represented by the BAT ADSs held by such holder or beneficial owner in excess of such limitations, if and to the extent such disposition is permitted by applicable law and the articles of association of BAT. Withdrawal of Deposited Securities upon Cancellation of BAT ADSs Holders will be entitled to present their BAT ADSs to the depositary bank for cancellation and then receive the corresponding number of underlying deposited securities at the custodian's offices. The ability to withdraw the deposited securities held in respect of the BAT ADSs may be limited by United States and England and Wales legal considerations applicable at the time of withdrawal. In order to withdraw the deposited securities represented by BAT ADSs, holders will be required to pay to the depositary bank the fees for cancellation of BAT ADSs and any charges and taxes payable upon the transfer of the deposited securities. BAT ADS holders assume the risk for delivery of all funds and securities upon withdrawal. Once canceled, the BAT ADSs will not have any rights under the deposit agreement. If holders hold BAT ADSs registered in their name, the depositary bank may ask them to provide proof of identity and genuineness of any signature and such other documents as the depositary bank may deem appropriate before it will cancel their BAT ADSs. The withdrawal of the deposited securities represented by BAT ADSs may be delayed until the depositary bank receives satisfactory evidence of compliance with all applicable laws and regulations. Please keep in mind that the depositary bank will only accept BAT ADSs for cancellation that represent a whole number of deposited securities. BAT ADS holders will have the right to withdraw the deposited securities represented by their BAT ADSs at any time except for: • temporary delays that may arise because (1) the transfer books for the BAT ordinary shares or BAT ADSs are closed, or (2) the deposit of BAT ordinary shares in connection with voting at a shareholders' meeting or a payment of dividends; • obligations to pay fees, taxes and similar charges; and • restrictions imposed because of laws or regulations applicable to BAT ADSs or the withdrawal of the deposited securities. The deposit agreement may not be modified to impair the right to withdraw the securities represented by BAT ADSs except to comply with mandatory provisions of law.

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21 Voting Rights Holders generally have the right under the deposit agreement to instruct the depositary bank to exercise the voting rights for the BAT ordinary shares represented by their BAT ADSs. For more information on the voting rights of holders of BAT ordinary shares see "Description of BAT Ordinary Shares—Voting Rights". At BAT's request, the depositary bank will distribute to BAT ADS holders any notice of shareholders' meeting (or solicitation of consent or proxy) timely received from BAT together with information explaining how to instruct the depositary bank to exercise the voting rights of the deposited securities. In lieu of distributing such materials, the depositary bank may distribute to holders of BAT ADSs instructions on how to retrieve such materials upon request. If the depositary bank timely receives voting instructions from a holder of BAT ADSs, it will, to the extent practicable and permitted under applicable law, the deposit agreement and the BAT articles of association, endeavor to vote the deposited securities (in person or by proxy) represented by the holder's BAT ADSs in accordance with such voting instructions as follows: • in the event of voting by show of hands, the depositary bank will vote or cause the custodian to vote all BAT ordinary shares held on deposit at that time in accordance with the voting instructions received from a majority of holders of BAT ADSs who provide timely voting instructions; or Deposited securities for which no voting instructions have been received will not be voted. The ability of the depositary bank to carry out voting instructions may be limited by practical and legal limitations and the terms of the deposited securities. BAT cannot assure holders that they will receive voting materials in time to enable them to return voting instructions to the depositary bank in a timely manner. • in the event of voting by poll, the depositary bank will vote or cause the custodian to vote the BAT ordinary shares held on deposit in accordance with the voting instructions received from the holders of BAT ADSs giving instructions. Reports The depositary bank will make available for inspection by BAT ADS holders at its principal office any reports and communications, including any proxy soliciting materials, received from BAT which are both (a) received by the depositary bank, the custodian, or the nominee of either of them as the holder of the deposited securities and (b) made generally available to the holders of such deposited securities by BAT. Fees and Charges BAT ADS holders will be required to pay the following fees to the depositary bank under the terms of the deposit agreement: Service Fees • Issuance of BAT ADSs upon deposit of BAT ordinary shares (excluding issuances as a result of distributions of shares described below) Up to U.S. $0.05 per BAT ADS issued(1) • Cancellation of BAT ADSs Up to U.S. $0.05 per BAT ADS surrendered(1) 22 • Distribution of cash dividends or other cash distributions (i.e., sale of rights and other entitlements) Up to U.S. $0.05 per BAT ADS held(2) • Distribution of BAT ADSs pursuant to (1) stock dividends or other free stock distributions, or (2) exercise of rights to purchase additional BAT ADSs Up to U.S. $0.05 per BAT ADS held • Depositary bank services Up to U.S. $0.05 per BAT ADS held (1) Under the terms of a separate agreement between BAT and the depositary bank, the depositary bank has agreed to waive the fees that would otherwise be payable in connection with the issuance of BAT ADSs upon deposit of BAT ordinary shares and the cancellation of BAT ADSs and corresponding withdrawal of BAT ordinary shares, in each case by BAT or any of its affiliates, officers, directors or employees. The terms of this separate agreement may be amended at any time by BAT and the depositary bank. (2) While under the deposit agreement cash dividends paid in respect of BAT ADSs are subject to a fee of up to $0.05 per BAT ADS payable to the depositary bank, under the terms of the separate agreement between BAT and the depositary bank referred to above, such dividends are instead subject to a fee of up to $0.04 per BAT ADS per year (a fee of $0.01 per dividend based on the current distribution of four quarterly cash dividends per year). Under such separate agreement, this dividend fee may not be varied by the depositary bank without the consent of BAT. BAT ADS holders will also be responsible to pay certain charges such as: • taxes (including applicable interest and penalties) and other governmental charges; • the registration fees as may from time to time be in effect for the registration of BAT ordinary shares or other deposited securities on the share register and applicable to transfers of BAT ordinary shares or other deposited securities to or from the name of the custodian, the depositary bank or any nominees upon the making of deposits and withdrawals, respectively; • certain cable, telex and facsimile transmission and delivery expenses; • the expenses and charges incurred by the depositary bank in the conversion of foreign currency; • the fees and expenses incurred by the depositary bank in connection with compliance with exchange control regulations and other regulatory requirements applicable to BAT ordinary shares, or other deposited securities, BAT ADSs and ADRs; and • the fees and expenses incurred by the depositary bank, the custodian, or any nominee in connection with the servicing or delivery of deposited securities. ADS fees and charges payable upon (1) the issuance of BAT ADSs, and (2) the cancellation of BAT ADSs are charged to the person to whom the BAT ADSs are issued (in the case of BAT ADS issuances) and to the person whose BAT ADSs are canceled (in the case of BAT ADS cancellations). In the case of BAT ADSs issued by the depositary bank into DTC, the BAT ADS issuance and cancellation fees and charges may be deducted from distributions made through DTC, and may be charged to the DTC 23 participant(s) receiving the BAT ADSs being issued or the DTC participant(s) holding the BAT ADSs being canceled, as the case may be, on behalf of the beneficial owner(s) and will be charged by the DTC participant(s) to the account of the applicable beneficial owner(s) in accordance with the procedures and practices of the DTC participants as in effect at the time. ADS fees and charges in respect of distributions and the depositary bank services fee are charged to the holders as of the applicable ADS record date. In the case of distributions of cash, the amount of the applicable ADS fees and charges is deducted from the funds being distributed. In the case of (1) distributions other than cash and (2) the depositary bank services fee, holders as of the ADS record date will be invoiced for the amount of the ADS fees and charges and such ADS fees and charges may be deducted from distributions made to holders of BAT ADSs. For BAT ADSs held through DTC, the ADS fees and charges for distributions other than cash and the depositary bank services fee may be deducted from distributions made through DTC, and may be charged to the DTC participants in accordance with the procedures and practices prescribed by DTC and the DTC participants in turn charge the amount of such ADS fees and charges to the beneficial owners for whom they hold BAT ADSs. In the event of refusal to pay the depositary bank's fees and charges, the depositary bank may, under the terms of the deposit agreement, refuse the requested service until payment is received or may set off the amount of the depositary bank's fees and charges from any distribution to be made to the BAT ADS holder. Note that the fees and charges holders may be required to pay may vary over time and may be changed by BAT and by the depositary bank (as described in "—Amendments and Termination" below). Prior notice of such changes will be provided. The depositary bank may reimburse BAT for certain expenses incurred by it in respect of the ADR program, by making available a portion of the ADS fees charged in respect of the ADR program or otherwise, upon such terms and conditions as BAT and the depositary bank agree from time to time. Amendments and Termination BAT may agree with the depositary bank to modify the deposit agreement at any time without consent of BAT ADS holders. BAT must give holders 30 days' prior notice of any modifications that would materially prejudice any of their substantial rights under the deposit agreement. BAT will not consider to be materially prejudicial to holders' substantial rights any modifications or supplements that are reasonably necessary for the BAT ADSs to be registered under the Securities Act or to be eligible for book-entry settlement, in each case without imposing or increasing the fees and charges they are required to pay. In addition, BAT may not be able to provide holders with prior notice of any modifications or supplements that are required to accommodate compliance with applicable provisions of law. BAT ADS holders will be bound by the modifications to the deposit agreement if they continue to hold their ADSs after the modifications to the deposit agreement become effective. The deposit agreement cannot be amended to prevent holders from withdrawing the deposited securities represented by their BAT ADSs (except as permitted by law). BAT has the right to direct the depositary bank to terminate the deposit agreement. Similarly, the depositary bank may in certain circumstances on its own initiative terminate the deposit agreement. In either case, the depositary bank must give notice to the holders at least 30 days before termination. Until termination, BAT ADS holders' rights under the deposit agreement will be unaffected. After termination, the depositary bank will continue to collect distributions received (but will not distribute any such property until a holder requests the cancellation of BAT ADSs) and may sell deposited securities. After the sale, the depositary bank will hold the proceeds from such sale and any other funds then held for the holders of BAT ADSs in a non-interest bearing account. At that point, the depositary 24 bank will have no further obligations to holders other than to account for the funds then held for the holders of BAT ADSs still outstanding (after deduction of applicable fees, taxes and expenses). Books of Depositary The depositary bank will maintain BAT ADS holder records at its depositary office. BAT ADS holders may inspect such records at such office during regular business hours but solely for the purpose of communicating with other holders in the interest of business matters relating to the BAT ADSs and the deposit agreement. The depositary bank will maintain in New York facilities to record and process the issuance, cancellation, combination, split-up and transfer of BAT ADSs. These facilities may be closed from time to time, to the extent not prohibited by law. Limitations on Obligations and Liabilities The deposit agreement limits the obligations of BAT and the depositary bank's obligations to BAT ADS holders. In particular: • BAT and the depositary bank are obligated only to take the actions specifically stated in the deposit agreement and to do so without negligence or bad faith; • the depositary bank disclaims any liability for any failure to carry out voting instructions, for any manner in which a vote is cast or for the effect of any vote, provided it acts in good faith and in accordance with the terms of the deposit agreement; • the depositary bank disclaims any liability for any failure to determine the lawfulness or practicality of any action, for the content of any document forwarded to you on BAT's behalf or for the accuracy of any translation of such a document, for the investment risks associated with investing in BAT ordinary shares, for the validity or worth of the BAT ordinary shares, for any tax consequences that result from the ownership of BAT ADSs, for the creditworthiness of any third party, for allowing any rights to lapse under the terms of the deposit agreement, for the timeliness of any notices from BAT or for BAT's failure to give notice; • BAT and the depositary bank will not be obligated to perform any act that is inconsistent with the terms of the deposit agreement; • BAT and the depositary bank disclaim any liability if BAT or the depositary bank are prevented or forbidden from or subject to any civil or criminal penalty or restraint on account of, or delayed in, doing or performing any act or thing required by the terms of the deposit agreement, by reason of any provision, present or future of any law or regulation, or by reason of present or future provision of any provision of the BAT articles of association, or any provision of or governing the deposited securities, or by reason of any act of God or war or other circumstances beyond their control; • BAT and the depositary bank disclaim any liability by reason of any exercise of, or failure to exercise, any discretion provided for in the deposit agreement or in the BAT articles of association or in any provisions of or governing deposited securities; • BAT and the depositary bank further disclaim any liability for any action or inaction in reliance on the advice or information received from legal counsel, accountants, any person presenting

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25 ordinary shares for deposit, any holder of BAT ADSs or authorized representatives thereof, or any other person believed by either BAT or the depositary bank in good faith to be competent to give such advice or information; • BAT and the depositary bank also disclaim liability for the inability by a holder to benefit from any distribution, offering, right or other benefit that is made available to holders of deposited securities but is not, under the terms of the deposit agreement, made available to BAT ADS holders; • BAT and the depositary bank may rely without any liability upon any written notice, request or other document believed to be genuine and to have been signed or presented by the proper parties; • BAT and the depositary bank also disclaim liability for any consequential or punitive damages for any breach of the terms of the deposit agreement; and • no disclaimer of any Securities Act liability is intended by any provision of the deposit agreement. Taxes BAT ADS holders are responsible for the taxes and other governmental charges payable on the BAT ADSs and other deposited securities represented by the BAT ADSs. BAT, the depositary bank and the custodian may deduct from any distribution the taxes and governmental charges payable by holders and may sell any and all property on deposit to pay the taxes and governmental charges payable by holders. Holders will be liable for any deficiency if the sale proceeds do not cover the taxes that are due. The depositary bank may refuse to issue BAT ADSs, to deliver, transfer, split and combine ADRs or to release deposited securities until all taxes and charges are paid by the applicable holder. The depositary bank and the custodian may take reasonable administrative actions to obtain tax refunds and reduced tax withholding for any distributions on behalf of a BAT ADS holder. However, holders may be required to provide to the depositary bank and to the custodian proof of taxpayer status and residence and such other information as the depositary bank and the custodian may require to fulfill legal obligations. BAT ADS holders are required to indemnify BAT, the depositary bank and the custodian for any claims with respect to taxes based on any tax benefit obtained for them. Foreign Currency Conversion The depositary bank will arrange for the conversion of all foreign currency received into U.S. Dollars if such conversion is practical, and it will distribute the U.S. Dollars in accordance with the terms of the deposit agreement. BAT ADS holders may have to pay fees and expenses incurred in converting foreign currency, such as fees and expenses incurred in complying with currency exchange controls and other governmental requirements. If the conversion of foreign currency is not practical or lawful, or if any required approvals are denied or not obtainable at a reasonable cost or within a reasonable period, the depositary bank may take the following actions in its discretion: • convert the foreign currency to the extent practical and lawful and distribute the U.S. Dollars to the holders for whom the conversion and distribution is lawful and practical; 26 • distribute the foreign currency to holders for whom the distribution is lawful and practical; or • hold the foreign currency (without liability for interest) for the applicable holders. Governing Law The deposit agreement and the ADRs are governed by the laws of the State of New York. The rights of holders of BAT ordinary shares (including BAT ordinary shares represented by BAT ADSs) are governed by the laws of England and Wales and the BAT articles of association. For further information regarding the material terms of the BAT ordinary shares, see "Description of BAT Ordinary Shares". C. Description of the Notes Issued Under the BATIF Indenture The following is a summary of the material provisions of the BATIF Indenture (as described below), the applicable supplemental indenture and the BATIF Notes. Any capitalized term used herein but not defined shall have the meaning assigned to such term in the BATIF Indenture, the applicable supplemental indenture or under "—Certain Definitions". The following summary does not purport to be complete and is subject to, and is qualified in its entirety by reference to, all of the provisions of the BATIF Indenture, the applicable supplemental indenture and those terms made a part of the BATIF Indenture and/or applicable supplemental indenture by reference to the Trust Indenture Act of 1939, as amended (the "TIA"). GENERAL The 5.931% Notes due 2029 (the "2029 5.931% Notes"), the 4.448% Notes due 2028 (the "2028 4.448% Notes") and the 1.668% Notes due 2026 (the "2026 1.668% Notes" and, together with the 2029 5.931% Notes and the 2028 4.448% Notes, the "BATIF Notes") were issued by B.A.T. International Finance p.l.c. ("BATIF" or the "Issuer"). The 2029 5.931% Notes will mature on February 2, 2029. The 2028 4.448% Notes will mature on March 16, 2028. The 2026 1.668% Notes will mature on March 25, 2026. The BATIF Notes were issued in registered form and treated as three separate series of debt securities and were each issued under a supplemental indenture to the indenture dated as of September 25, 2020 (as amended or supplemented from time to time, the "BATIF Indenture") by and among BATIF, as Issuer, British American Tobacco p.l.c. ("BAT" or the "Parent"), B.A.T Capital Corporation ("BATCAP"), B.A.T. Netherlands Finance B.V. ("BATNF") and, unless its guarantee is released in accordance with the BATIF Indenture, Reynolds American Inc. ("RAI"), each as a guarantor, Citibank, N.A., as trustee (the "Trustee"), authentication agent, registrar, transfer agent, calculation agent and initial paying agent (in such several capacities under the BATIF Indenture, the "Authentication Agent", "Registrar", "Transfer Agent", "Calculation Agent" and "Paying Agent", respectively). Each guarantee in respect of the BATIF Notes is referred to herein as a "Guarantee" and each entity that provides a Guarantee is referred to herein as a "Guarantor". In this "Description of the Notes Issued Under the BATIF Indenture", the terms "holder", "Noteholder" and other similar terms refer to a "registered holder" of BATIF Notes, and not to a beneficial owner of a book-entry interest in any BATIF Notes. 27 PRINCIPAL, MATURITY AND INTEREST The obligations of the Issuer under the BATIF Notes and BATIF Indenture are fully and unconditionally guaranteed on a joint and several, and senior and unsecured basis by each of the Parent, BATCAP, BATNF and, unless its guarantee is released in accordance with the BATIF Indenture, RAI. The BATIF Notes were issued in the following aggregate principal amounts, with outstanding aggregate principal amounts as of December 31, 2025 and maturity dates as follows: 1 Series of BATIF Notes Initial aggregate principal amount Outstanding aggregate principal amount Maturity date 2029 5.931% Notes $1,000,000,000 $1,000,000,000 February 2, 2029 2028 4.448% Notes $1,000,000,000 $1,000,000,000 March 16, 2028 2026 1.668% Notes $1,500,000,000 $1,500,000,000 March 25, 2026 Interest The BATIF Notes bear interest per annum as follows: Series of BATIF Notes Interest rate per annum 2029 5.931% Notes 5.931% 2028 4.448% Notes 4.448% 2026 1.668% Notes 1.668% The BATIF Notes will bear interest from the date of the initial issuance of such BATIF Notes or from the most recent interest payment date to which interest has been paid or provided for, payable semi-annually in arrear on each series' respective Interest Payment Dates (as defined in the table below) of each year, commencing on each series' respective Initial Interest Payment Date (as defined in the table below) until each series' respective maturity date, unless previously purchased and cancelled or redeemed by the Issuer, to the person in whose name any such BATIF Note is registered at the close of business on the 15th calendar day preceding each Interest Payment Date, whether or not such day is a Business Day (each, a "Record Date") notwithstanding any transfer or exchange of such BATIF Notes subsequent to the Record Date and prior to such Interest Payment Date, except that, if and to the extent the Issuer shall default in the payment of the interest due on such Interest Payment Date, and the applicable grace period shall have expired, such defaulted interest may at the option of the Issuer be paid to the persons in whose names such outstanding BATIF Notes are registered at the close of business on a subsequent Record Date (which shall not be less than five Business Days prior to the date of payment of such defaulted interest) established by notice sent by or on behalf of the Issuer to the holders of such BATIF Notes, not less than 15 days preceding such subsequent Record Date. Series of BATIF Notes Interest Payment Dates Initial Interest Payment Date 2029 5.931% Notes February 2 and August 2 February 2, 2024 2028 4.448% Notes March 16 and September 16 September 16, 2022 2026 1.668% Notes March 25 and September 25 March 25, 2021 28 Interest is computed on the basis of a 360-day year consisting of twelve 30-day months, or in the case of an incomplete month, the number of days elapsed. If the date on which any interest payment or principal payment is to be made is not a Business Day, such payment will be made on the next day which is a Business Day, without any further interest or other amounts being paid or payable in connection therewith. A "Business Day" refers to any day which is not, in London or New York City, or any other place of payment, a Saturday, Sunday, legal holiday or a day on which banking institutions are authorized or obligated by law or regulation to close. Form and Denomination The BATIF Notes were issued in fully registered form and only in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof, and were issued initially as global notes representing the BATIF Notes (collectively, the "BATIF Global Notes"). The BATIF Global Notes were (i) registered in the name of the Depositary or the nominee of such Depositary, in each case for the credit to an account of a member of, or direct or indirect participant in, the Depositary; and (ii) delivered to Citibank, N.A. as custodian for such Depositary. Further Issues The aggregate principal amount of notes (including the BATIF Notes) issuable under the BATIF Indenture (the "Notes") is unlimited. The Issuer may, from time to time, without notice to or the consent of the holders of the BATIF Notes, issue Notes of a new series or "reopen" any series of the Notes (including the BATIF Notes) and create and issue additional notes having substantially identical terms and conditions as the then-outstanding Notes of a series (including the BATIF Notes) (or in all respects except as to issue date, issue price and the date from which interest, if any, shall accrue and except as may otherwise be provided in or pursuant to an officer's certificate or any supplemental indenture relating thereto) so that the additional Notes are consolidated and form a single series of Notes with the outstanding Notes of such series, as the case may be; provided that if the additional Notes are not fungible with the outstanding Notes of the relevant series for United States Federal income tax purposes, the additional Notes will have separate CUSIPs, ISINs, or other identifying numbers. Status of the BATIF Notes and Guarantees The BATIF Notes are unsecured and unsubordinated obligations of the Issuer and rank pari passu in right of payment among themselves and with all other direct, unsecured and unsubordinated obligations of the Issuer (except those obligations preferred by statute or operation of law). Each Guarantor fully and unconditionally guarantees, on a senior, unsecured basis, the due and punctual payment (and not collectability) of the principal of and interest on the BATIF Notes (and the payment of additional amounts described under "—Additional Amounts" below) and other obligations under the BATIF Indenture when and as the same shall become due and payable, whether at stated maturity, by declaration of acceleration, call for redemption or otherwise. Each Guarantee is an unsecured and unsubordinated obligation of the respective Guarantor and rank pari passu in right of payment with all other direct, unsecured and unsubordinated obligations of such Guarantor (except those obligations preferred by statute or operation of law). The Issuer and each Guarantor are subject to a negative pledge with respect to certain types of indebtedness, which are discussed below under "—Covenants of the Issuer and the Guarantors—Negative Pledge".

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29 Guarantees Release The BATIF Indenture and the applicable supplemental indenture provide that, without the consent of the Trustee or the Noteholders, any Guarantor that is a subsidiary of the Parent (a "Subsidiary Guarantor"), other than BATCAP and BATNF, will automatically and unconditionally be released from all obligations under its Guarantee, and such Guarantee shall thereupon terminate and be discharged and of no further force or effect, in the event that (1) its guarantee of all then outstanding notes issued under the EMTN Programme is released or (2) at substantially the same time its Guarantee is terminated, the Subsidiary Guarantor is released from all obligations in respect of indebtedness for borrowed money for which such Subsidiary Guarantor is an obligor (as a guarantor or borrower). For purposes of this paragraph, the amount of a Subsidiary Guarantor's indebtedness for borrowed money shall not include (A) the Notes (including the BATIF Notes) issued pursuant to the BATIF Indenture, (B) any other debt the terms of which permit the termination of such Subsidiary Guarantor's guarantee of such debt under similar circumstances, as long as such Subsidiary Guarantor's obligations in respect of such other debt are terminated at substantially the same time as its Guarantee of the Notes (including the BATIF Notes), (C) any debt that is being refinanced at substantially the same time that the Guarantee of the Notes (including the BATIF Notes) is being released, provided that any obligations of the relevant Subsidiary Guarantor in respect of the debt that is incurred in the refinancing shall be included in the calculation of the relevant Subsidiary Guarantor's indebtedness for borrowed money and (D) for the avoidance of doubt, any debt in respect of which such Subsidiary Guarantor is an obligor (as a guarantor or borrower) (i) between or among the Parent and any subsidiary or subsidiaries thereof or (ii) between or among any subsidiaries of the Parent. As of the date of this summary, RAI is the only Subsidiary Guarantor to which the above provision is relevant. Under the EMTN Programme, a Subsidiary Guarantor's guarantee is released if at any time the aggregate amount of indebtedness for borrowed money for which the Subsidiary Guarantor is an obligor does not exceed 10% of the outstanding long-term debt of BAT as reflected in the balance sheet included in BAT's most recent publicly released interim or annual consolidated financial statements, as evidenced by a certificate to such effect addressed to the trustee under the EMTN Programme and signed by a director of BAT. Additional Amounts The Issuer or, if applicable, each Guarantor will make payments of, or in respect of, principal, premium (if any) and interest on the BATIF Notes, or any payment pursuant to the applicable Guarantee, as the case may be, without withholding or deduction for or on account of any present or future tax, levy, impost or other similar governmental charge ("Taxes") imposed, assessed, levied or collected by or for the account of the United Kingdom, The Netherlands (in the case of a payment by BATNF) or the United States (in the case of a payment by BATCAP or RAI), including in each case any political subdivision thereof or any authority thereof having the power to tax (a "Relevant Taxing Jurisdiction"), unless such withholding or deduction is required by law. If the Issuer or, if applicable, any such Guarantor is required by a Relevant Taxing Jurisdiction to so withhold or deduct such Taxes, the Issuer or, if applicable, such Guarantor will pay to the Holder such additional amounts ("Additional Amounts") as will result in the receipt by the Holder of such amounts as would have been received by it if no such withholding or deduction of Taxes had been required; provided, however, that amounts with respect to any United States Tax shall be payable only to Holders that are not United States persons (within the meaning of the Code) and provided further, that neither the Issuer nor such Guarantor shall be required to pay any Additional Amounts for or on account of: 30 (a) any Taxes that would not have been so imposed, assessed, levied or collected but for the Holder or beneficial owner of the applicable Note or Guarantee (or a fiduciary, settlor, beneficiary, member or shareholder of, or possessor of a power over, such Holder, if such Holder is an estate, trust, partnership or corporation) being or having been a domiciliary, national or resident of, or engaging or having been engaged in a trade or business, maintaining or having maintained a permanent establishment or being or having been physically present in, a Relevant Taxing Jurisdiction or otherwise having or having had some connection with a Relevant Taxing Jurisdiction other than the holding or ownership of, or the collection of principal of, and premium (if any) or interest on, a Note or the enforcement of the applicable Guarantee, as the case may be; (b) any Taxes that would not have been so imposed, assessed, levied or collected but for the fact that, where presentation is required in order to receive payment, the applicable Note or Guarantee was presented more than 30 days after the date on which such payment became due and payable or was provided for, whichever is later, except to the extent that the Holder or beneficial owner thereof would have been entitled to Additional Amounts had the applicable Note or Guarantee been presented for payment on any day during such 30-day period; (c) any estate, inheritance, gift, sales, transfer, personal property or similar Taxes; (d) any Taxes that are payable otherwise than by withholding or deduction from payments on or in respect of the applicable Note or Guarantee; (e) any Taxes that would not have been so imposed, assessed, levied or collected but for the failure by the Holder or the beneficial owner of the applicable Note or Guarantee to (i) provide any certification, identification, information, documents or other evidence concerning the nationality, residence or identity of the Holder or the beneficial owner or its connection with a Relevant Taxing Jurisdiction; or (ii) make any valid or timely declaration or claim or satisfy any other reporting, information or procedural requirements relating to such matters if, in either case, compliance is required by statute, regulation, relevant income tax treaty or administrative practice of a Relevant Taxing Jurisdiction as a condition to relief or exemption from such Taxes; (f) any Taxes imposed by reason of the Holder or the beneficial owner of the applicable Note or Guarantee being or having been considered a bank receiving payments on an extension of credit made pursuant to a loan agreement entered into in the ordinary course of its trade or business, as described in Section 881(c)(3)(A) of the Code (or any amended or successor provisions); (g) any Taxes imposed on interest received by a 10-percent shareholder of the Issuer or any Guarantor within the meaning of Section 871(h)(3)(B) or Section 881(c)(3)(B) of the Code (or any amended or successor provisions); (h) any backup withholding imposed pursuant to Section 3406 of the Code (or any amended or successor provisions); (i) any Taxes imposed pursuant to Section 871(h)(6) or Section 881(c)(6) of the Code (or any amended or successor provisions); 31 (j) any Taxes imposed by reason of the Holder or the beneficial owner of the applicable Note or Guarantee being or having been a personal holding company, passive foreign investment company or controlled foreign corporation for U.S. Federal income tax purposes or a corporation that has accumulated earnings to avoid U.S. Federal income tax; (k) any Taxes imposed or withheld pursuant to Sections 1471 through 1474 of the Code (or any amended or successor provisions), any U.S. Treasury regulations promulgated thereunder, any official interpretations thereof or any agreements entered into in connection with the implementation thereof ("FATCA Withholding"); (l) any Taxes imposed or to be withheld pursuant to the Dutch Withholding Tax Act 2021 (Wet bronbelasting 2021); or (m) any combination of the Taxes described in clauses (a) through (l) above. In addition, Additional Amounts will not be paid with respect to any payment of the principal of, or premium (if any) or interest on, any BATIF Note or any payment pursuant to the applicable Guarantee to any Holder that is a fiduciary, a partnership, a limited liability company or any person other than the sole beneficial owner of such payment to the extent a beneficiary or settlor with respect to such fiduciary, a member of such partnership, an interest holder in such limited liability company or a beneficial owner that would not have been entitled to such amounts had such beneficiary, settlor, member, interest holder or beneficial owner been the Holder of the applicable BATIF Note or Guarantee. Unless otherwise stated, references in any context to the payment of principal of, and premium (if any) or interest on, any BATIF Note, or any payment pursuant to a Guarantee, will be deemed to include payment of Additional Amounts to the extent that, in such context, Additional Amounts are, were or would be payable in respect thereof. Redemption The BATIF Notes are subject to optional redemption by the Issuer as described below under "—Optional Redemption". The BATIF Notes are subject to optional redemption by the Issuer in the event of certain changes in tax laws applicable to payments in respect of the BATIF Notes as described below under "— Redemption for Tax Reasons". Optional Redemption of the 2029 5.931% Notes and the 2028 4.448% Notes (the "post-2021 BATIF Notes") The Issuer may redeem the post-2021 BATIF Notes, in whole or in part, at the Issuer's option, at any time and from time to time before the applicable Par Call Date (as defined below), at a redemption price equal to the greater of (x) 100% of the principal amount of the series of post-2021 BATIF Notes to be redeemed and (y) the sum of the present values of the applicable Remaining Scheduled Payments (as defined below) discounted to the date of redemption (the "Redemption Date") on a semi-annual basis (assuming a 360- day year consisting of twelve 30-day months or, in the case of an incomplete month, the number of days elapsed) at the Treasury Rate (as defined below) plus, in the case of each respective series of post-2021 BATIF Notes as follows: 2029 5.931% Notes 30 basis points 2028 4.448% Notes 40 basis points 32 together with, in each case, accrued and unpaid interest on the principal amount of the post-2021 BATIF Notes to be redeemed to, but excluding, the Redemption Date. If the Issuer elects to redeem a series of post-2021 BATIF Notes on or after the applicable Par Call Date, the Issuer will pay an amount equal to 100% of the principal amount of the post-2021 BATIF Notes redeemed, plus accrued and unpaid interest, if any, to, but excluding, the Redemption Date. In connection with such optional redemption the following defined terms apply: • Par Call Date means (i) January 2, 2029 with respect to any 2029 5.931% Notes (one month prior to the maturity date of the 2029 5.931% Notes) and (ii) February 16, 2028 with respect to any 2028 4.448% Notes (one month prior to the maturity date of the 2028 4.448% Notes). • Remaining Scheduled Payments means, with respect to each post-2021 BATIF Note to be redeemed, the remaining scheduled payments of the principal thereof and interest thereon that would be due from and including the related Redemption Date, but for such redemption, to but excluding the relevant Par Call Date; provided, however, that if that Redemption Date is not an Interest Payment Date with respect to such post-2021 BATIF Notes, the amount of the next succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued thereon to, but excluding, that Redemption Date. • Treasury Rate means, with respect to any Redemption Date, the yield determined by the Issuer in accordance with the following two paragraphs: (1) The Treasury Rate shall be determined by the Issuer after 4:15 p.m., New York City time (or after such time as yields on U.S. government securities are posted daily by the Board of Governors of the Federal Reserve System), on the third Business Day preceding the Redemption Date based upon the yield or yields for the most recent day that appear after such time on such day in the most recent statistical release published by the Board of Governors of the Federal Reserve System designated as "Selected Interest Rates (Daily)—H.15" (or any successor designation or publication) ("H.15") under the caption "U.S. government securities—Treasury constant maturities—Nominal" (or any successor caption or heading) ("H.15 TCM"). In determining the Treasury Rate, the Issuer shall select, as applicable: (1) the yield for the Treasury constant maturity on H.15 exactly equal to the period from the redemption date to the Par Call Date (the "Remaining Life"); or (2) if there is no such Treasury constant maturity on H.15 exactly equal to the Remaining Life, the two yields—one yield corresponding to the Treasury constant maturity on H.15 immediately shorter than and one yield corresponding to the Treasury constant maturity on H.15 immediately longer than the Remaining Life—and shall interpolate to the Par Call Date on a straight-line basis (using the actual number of days) using such yields and rounding the result to three decimal places; or (3) if there is no such Treasury constant maturity on H.15 shorter than or longer than the Remaining Life, the yield for the single Treasury constant maturity on H.15 closest to the Remaining Life. For purposes of this paragraph, the applicable Treasury constant maturity or maturities on H.15 shall be deemed to have a maturity date equal to the relevant number of months or years, as applicable, of such Treasury constant maturity from the Redemption Date. (2) If on the third Business Day preceding the Redemption Date H.15 TCM is no longer published, the Issuer shall calculate the Treasury Rate based on the rate per annum equal to the semi-annual equivalent yield to maturity at 11:00 a.m., New York City time, on the second business day preceding such Redemption Date of the United States Treasury

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33 security maturing on, or with a maturity that is closest to, the Par Call Date, as applicable. If there is no United States Treasury security maturing on the Par Call Date but there are two or more United States Treasury securities with a maturity date equally distant from the Par Call Date, one with a maturity date preceding the Par Call Date and one with a maturity date following the Par Call Date, the Issuer shall select the United States Treasury security with a maturity date preceding the Par Call Date. If there are two or more United States Treasury securities maturing on the Par Call Date or two or more United States Treasury securities meeting the criteria of the preceding sentence, the Issuer shall select from among these two or more United States Treasury securities the United States Treasury security that is trading closest to par based upon the average of the bid and asked prices for such United States Treasury securities at 11:00 a.m., New York City time. In determining the Treasury Rate in accordance with the terms of this paragraph, the semi-annual yield to maturity of the applicable United States Treasury security shall be based upon the average of the bid and asked prices (expressed as a percentage of principal amount) at 11:00 a.m., New York City time, of such United States Treasury security, and rounded to three decimal places. Notice of any optional redemption will be given in accordance with the BATIF Indenture (as supplemented by the supplemental indentures pursuant to which the post-2021 BATIF Notes were issued) at least 10 days but not more than 60 days before the Redemption Date to each holder of the post-2021 BATIF Notes to be redeemed. Any redemption may, at the Issuer's sole discretion, be subject to the satisfaction of one or more conditions precedent. In the event of a conditional redemption, the notice of conditional redemption shall reflect and specify the conditions to the redemption. Once the notice of redemption is delivered, post-2021 BATIF Notes called for redemption shall, subject to the satisfaction of any applicable conditions, become irrevocably due and payable on the Redemption Date. If less than all the post-2021 BATIF Notes of a series are to be redeemed, in the case of a redemption at the Issuer's option as discussed in this section, the post-2021 BATIF Notes to be redeemed shall be selected in accordance with applicable procedures of DTC. Upon presentation of any post-2021 BATIF Note redeemed in part only, the Issuer will execute and upon receipt of a written direction from the Issuer, the Paying Agent will authenticate and deliver (or cause to be transferred by book-entry) to, or on, the order of the holder thereof, at the expense of the Issuer, a new post-2021 BATIF Note of authorized denominations in principal amount equal to the unredeemed portion of the post-2021 BATIF Note so presented. The Issuer's actions and determinations in determining the redemption price shall be conclusive and binding for all purposes, absent manifest error. Optional Redemption of the 2026 1.668% Notes The Issuer may redeem the 2026 1.668% Notes, in whole or in part, at the Issuer's option, at any time and from time to time before the Par Call Date (as defined below), at a redemption price equal to the greater of (x) 100% of the principal amount of the 2026 1.668% Notes to be redeemed and (y) as determined by the Independent Investment Banker (as defined below), the sum of the present values of the applicable Remaining Scheduled Payments (as defined below) discounted to the date of redemption (the "Redemption Date") on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months or, in the case of an incomplete month, the number of days elapsed) at the Treasury Rate (as defined below) plus 25 basis points, together with accrued and unpaid interest on the principal amount of the 2026 1.668% Notes to be redeemed to, but excluding, the Redemption Date. 34 If the Issuer elects to redeem a series of the 2026 1.668% Notes on or after the Par Call Date, the Issuer will pay an amount equal to 100% of the principal amount of the 2026 1.668% Notes redeemed, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption. In connection with such optional redemption the following defined terms apply: • Comparable Treasury Issue means the United States Treasury security selected by the Independent Investment Banker that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the 2026 1.668% Notes to the Par Call Date. • Comparable Treasury Price means, with respect to any Redemption Date, (A) the average of the Reference Treasury Dealer Quotations for that Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations or (B) if the Independent Investment Banker for the 2026 1.668% Notes obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such Quotations. • Independent Investment Banker means one of the Reference Treasury Dealers (as defined below) appointed by the Issuer to act as the "Independent Investment Banker". • Par Call Date means February 25, 2026 (one month prior to the maturity date of the 2026 1.668% Notes). • Reference Treasury Dealer means each of BofA Securities, Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, NatWest Markets Securities Inc., SG Americas Securities, LLC and Wells Fargo Securities, LLC and their respective successors and two other nationally recognized investment banking firms that are Primary Treasury Dealers specified from time to time by the Issuer; provided, however, that if any of the foregoing shall cease to be a primary U.S. government securities dealer in New York City (a "Primary Treasury Dealer"), the Issuer shall substitute therefor another nationally recognized investment banking firm that is a Primary Treasury Dealer. • Reference Treasury Dealer Quotation means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day immediately preceding that Redemption Date. • Remaining Scheduled Payments means, with respect to each BATIF Note to be redeemed, the remaining scheduled payments of the principal thereof and interest thereon that would be due from and including the related Redemption Date, but for such redemption, to but excluding the Par Call Date; provided, however, that if that Redemption Date is not an Interest Payment Date with respect to such 2026 1.668% Notes, the amount of the next succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued thereon to that Redemption Date. • Treasury Rate means, with respect to any Redemption Date, the rate per annum equal to the semi- annual equivalent yield to maturity (computed as of the third Business Day immediately preceding that Redemption Date) of the Comparable Treasury Issue, assuming a price for the 35 Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for that Redemption Date. Notice of any optional redemption will be given in accordance with the BATIF Indenture at least 10 days but not more than 30 days before the Redemption Date to each holder of the 2026 1.668% Notes to be redeemed. Any redemption may, at the Issuer's sole discretion, be subject to the satisfaction of one or more conditions precedent. In the event of a conditional redemption, the notice of conditional redemption shall reflect and specify the conditions to the redemption. Once the notice of redemption is delivered, 2026 1.668% Notes called for redemption shall, subject to the satisfaction of any applicable conditions, become irrevocably due and payable on the Redemption Date. If less than all the 2026 1.668% Notes are to be redeemed, in the case of a redemption at the Issuer's option as discussed in this section, the 2026 1.668% Notes to be redeemed shall be selected in accordance with applicable procedures of DTC. Upon presentation of any 2026 1.668% Note redeemed in part only, the Issuer will execute and upon receipt of a written direction from the Issuer, the Paying Agent will authenticate and deliver (or cause to be transferred by book-entry) to, or on, the order of the holder thereof, at the expense of the Issuer, a new 2026 1.668% Note of authorized denominations in principal amount equal to the unredeemed portion of the 2026 1.668% Note so presented. The redemption price shall be calculated by the Independent Investment Banker and the Issuer, and the Trustee and any agent shall be entitled to rely on such calculation. Redemption for Tax Reasons Each series of Notes (including the BATIF Notes) is also redeemable by the Issuer, in whole but not in part, at 100% of the principal amount of such Notes plus any accrued and unpaid interest (including any Additional Amounts) to the applicable date fixed for such redemption pursuant to the terms of the BATIF Indenture or such series of Notes (the "Redemption Date") at the Issuer's option at any time prior to their maturity if, due to a Change in Tax Law (as defined below): (i) the Issuer or any Guarantor, in accordance with the terms of the applicable Notes or applicable Guarantee, has, or would, become obligated to pay any Additional Amounts to the Holders of the Notes of that series; (ii) in the case of any Guarantor, (A) the Parent would be unable, for reasons outside its control, to procure payment by the Issuer or any other Guarantor or (B) the procuring of such payment by the Issuer and each such other Guarantor would be subject to withholding Taxes imposed by a Relevant Taxing Jurisdiction; and (iii) such obligation cannot otherwise be avoided by such Guarantor, the Parent or the Issuer, taking reasonable measures available to it. In such case, the Issuer may redeem the applicable Notes upon not less than 30 nor more than 60 days' notice as provided in " —Notice" below, at 100% of the principal amount of such Notes plus accrued and unpaid interest to the Redemption Date (including Additional Amounts); provided that (a) no such notice of redemption shall be given earlier than 90 days prior to the earliest date on which the Issuer or such Guarantor, as the case may be, would be obligated to pay any such Additional Amounts in respect of the applicable Notes or applicable Guarantee, as applicable, then due; and (b) at the time such notice is given, such obligation to pay such Additional Amounts remains in effect. The Issuer's right to redeem the applicable Notes shall continue as long as the Issuer or any Guarantor is obligated to pay such Additional Amounts, notwithstanding that the Issuer or such Guarantor, as the case may be, shall have made payments of Additional Amounts. Prior to the giving of any such notice of redemption, the Issuer must deliver to the Trustee: (i) an officer's certificate stating that the Issuer is entitled to effect such redemption and setting forth a statement of facts showing that the conditions precedent to the right of the Issuer to so redeem have occurred; and (ii) an opinion of independent counsel or an independent accountant of recognized standing, selected by the Issuer or any Guarantor, as applicable, with respect to tax matters of 36 the Relevant Taxing Jurisdiction to the effect that the Issuer or such Guarantor has, or would, become obligated to pay such Additional Amounts as a result of such Change in Tax Law. For the purposes hereof, "Change in Tax Law" shall mean: (i) any changes in, or amendment to, any law of a Relevant Taxing Jurisdiction (including any regulations or rulings promulgated thereunder and including, for this purpose, any treaty entered into by the Relevant Taxing Jurisdiction) or any amendment to or change in the application or official interpretation (including judicial or administrative interpretation) of such law, which change or amendment becomes effective or, in the case of an official interpretation, is announced, on or after the first date of issuance of Notes of such series; or (ii) if the Issuer or any Guarantor consolidates, merges, amalgamates or combines with, or transfers or leases its assets substantially as an entirety to, any person that is incorporated or tax resident under the laws of any jurisdiction other than a Relevant Taxing Jurisdiction (a "successor") and as a consequence thereof such person becomes the successor obligor to the Issuer or such Guarantor in respect of Additional Amounts that may become payable (in which case, for purposes of this redemption provision, all references to the Issuer or such Guarantor shall be deemed to be and include references to such person), any change in, or amendment to, any law of the jurisdiction of organization or tax residence of such successor, or the jurisdiction through which payments will be made by the successor, or any political subdivision or taxing authority thereof or thereon for purposes of taxation (including any regulations or rulings promulgated thereunder and including, for this purpose, any treaty entered into by such jurisdiction) or any amendment to or change in the application or official interpretation (including judicial or administrative interpretation) of such law, which change or amendment becomes effective or, in the case of an official interpretation, is announced, on or after the date of such consolidation, merger, amalgamation, combination or other transaction. General On or before any Redemption Date (as defined above), the Issuer shall deposit with the Paying Agent money sufficient to pay the redemption price of and accrued and unpaid interest on the BATIF Notes to be redeemed on such date. On and after any Redemption Date, interest will cease to accrue on the BATIF Notes or any portion thereof called for redemption. Maturity Unless previously purchased or redeemed by the Issuer, and cancelled, the principal amount of each respective series of BATIF Notes shall mature on Series of BATIF Notes Maturity date 2029 5.931% Notes February 2, 2029 2028 4.448% Notes March 16, 2028 2026 1.668% Notes March 25, 2026 in an amount equal, in each case, to their principal amount, with accrued and unpaid interest to, but excluding, such date.

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37 Covenants of the Issuer and the Guarantors Reacquisition There is no restriction on the ability of the Issuer to purchase or repurchase Notes (including the BATIF Notes), provided, that any Notes so repurchased shall be cancelled and not reissued. Sinking Fund There is no provision for a sinking fund for any of the Notes (including the BATIF Notes). Certain Definitions Set forth below is a summary of certain of the defined terms used in the BATIF Notes, the BATIF Indenture and the applicable supplemental indenture. You should refer to the BATIF Notes, the BATIF Indenture and applicable supplemental indenture for the full definition of all defined terms as well as any other terms used herein for which no definition is provided. "Dollar" or "$" means United States Dollars, or such other money of the United States that at the time of payment is legal tender for payment of public and private debts. "EMTN Programme" means the Euro Medium Term Note Programme to which BATCAP, BATIF and BATNF are parties as the issuers under the programme and notes issued thereunder are guaranteed by the Parent, each of the issuers thereunder (except when it is the relevant issuer) and RAI, as amended from time to time. "Original Issue Discount Note" means any Note that is issued with "original issue discount" within the meaning of Section 1273(a) of the Code and Treasury Regulations promulgated thereunder and any other Note designated by the Company as issued with original issue discount for United States federal income tax purposes. "Person" means any individual, corporation, partnership, joint venture, association, limited liability company, joint stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. "Quoted Borrowing" means any indebtedness which: (i) is represented by notes, debentures or other securities issued otherwise than to constitute or represent advances made by banks and/or other lending institutions; (ii) is denominated, or confers any right to payment of principal and/or interest, in or by reference to any currency other than the currency of the country in which the issuer of the indebtedness has its principal place of business or is denominated, or confers any right to payment of principal and/or interest, in or by reference to the currency of such country but is sold or subscribed by or on behalf of, or by agreement with, the issuer of such indebtedness as to over 20% outside such country; and (iii) at its date of issue is, or is intended by the issuer of such indebtedness to become, quoted, listed, traded or dealt in on any stock exchange or other organized and regulated securities market in any part of the world. Covenants of the Issuer and the Guarantors Negative Pledge The BATIF Indenture provides that so long as any of the Notes (including the BATIF Notes) remains outstanding, neither the Issuer nor any Guarantor will secure or allow to be secured any Quoted 38 Borrowing issued by the Issuer or any Guarantor or any payment under any guarantee by any of them of any such Quoted Borrowing by any mortgage, charge, pledge or lien (other than arising by operation of law) upon any of its undertaking or assets, whether present or future, unless at the same time the same mortgage, charge, pledge or lien is extended, or security which is not materially less beneficial to the holders of the Notes than the security given as aforesaid or which shall be approved by consent of the holders of not less than 75% in aggregate principal amount of the Notes at the time outstanding is extended or created (as the case may be), to secure equally and ratably the principal of, and interest on, and all other payments (if any) in respect of the Notes. Limitation on Mergers, Consolidations, Amalgamations and Combinations Under the BATIF Indenture, so long as any of the Notes (including the BATIF Notes) remains outstanding thereunder, neither the Issuer nor any Guarantor may consolidate with or merge into any other person or sell, convey, transfer or lease its properties and assets as an entirety or substantially as an entirety to any person (other than any sale or conveyance by way of a lease in the ordinary course of business), unless: (i) in the case of the Issuer, any successor person assumes the Issuer's obligations on the Notes (including the BATIF Notes) and under the BATIF Indenture and, in the case of any Guarantor, any successor person assumes such Guarantor's obligations on the Guarantee and under the BATIF Indenture; (ii) immediately after giving effect to such transaction, no Event of Default, and no event which, after notice or lapse of time or both, would become an Event of Default, shall have occurred and be continuing; (iii) such successor person is organized under the laws of the United States or any State thereof, the United Kingdom, The Netherlands or any other country that is a member of the Organization for Economic Cooperation and Development as of the date of such succession; (iv) such successor person agrees to pay any Additional Amounts with respect to any withholding or deduction of Taxes or any payment on the Notes (including the BATIF Notes) or Guarantees (as applicable) imposed by the jurisdiction (other than the United States, unless otherwise required by clause (i) of this paragraph) in which such successor person is incorporated or otherwise a resident for tax purposes subject to the exceptions described under "—Additional Amounts" (for the avoidance of doubt, solely to the extent such successor person is the Issuer, changes will be made to the BATIF Indenture as are necessary to obligate the Issuer to pay such Additional Amount); and (v) if as a result of such consolidation or merger or such sale, conveyance, transfer or lease, properties or assets of the Issuer or any Guarantor would become subject to a mortgage, pledge, security interest, lien or similar encumbrance to secure payment of any indebtedness for borrowed money of the Issuer or any Guarantor which would not be permitted by the Notes of a series or under the BATIF Indenture, the Issuer or any Guarantor or such successor person, as the case may be, shall take such steps as shall be necessary to effectively secure the Notes of such series equally and ratably with (or prior to) all indebtedness for borrowed money secured thereby. The limitation on mergers, consolidations, amalgamations and combinations described in this section "— Limitation on Mergers, Consolidations, Amalgamations and Combinations" shall not apply to any consolidation, merger, amalgamation or combination in which the Issuer or any Guarantor is the surviving corporation except that, in such case, the provisions of (ii) and (v) above shall apply such that: (x) immediately after giving effect to such transaction, no Event of Default, and no event which, after notice or lapse of time or both, would become an Event of Default, shall have occurred and be continuing; and (y) if as a result of such consolidation or merger or such sale, conveyance, transfer or lease, properties or assets of the Issuer or any Guarantor would become subject to a mortgage, pledge, security interest, lien or similar encumbrance to secure payment of any indebtedness for borrowed money of the Issuer or any Guarantor which would not be permitted by the Notes or under the BATIF Indenture, the Issuer or any Guarantor, as the case may be, shall take such steps as shall be necessary to effectively secure the Notes equally and ratably with (or prior to) all indebtedness for borrowed money secured thereby. 39 The BATIF Indenture does not contain covenants or other provisions to afford protection to holders of the Notes in the event of a highly leveraged transaction or a change in control of the Issuer or any Guarantor except as provided above. Upon certain mergers or consolidations involving the Issuer or any Guarantor, or upon certain sales or conveyances of all or substantially all of the assets of the Issuer or any Guarantor, the obligations of the Issuer or such Guarantor, under the applicable Notes or the applicable Guarantee, shall be assumed by the person formed by such merger or consolidation or which shall have acquired such assets and upon such assumptions such person shall succeed to and be substituted for the Issuer or such Guarantor, as the case may be, and then the Issuer or such Guarantor will (except in the case of a lease) be relieved of all obligations and covenants under the BATIF Indenture, the Notes and the applicable Guarantee, as the case may be. The terms "Issuer" and "Guarantor", as used in the Notes and the BATIF Indenture, also refer to any such successors or assigns so substituted. Although there is a limited body of case law interpreting the phrase "entirety or substantially as an entirety", there is no precise established definition of the phrase under applicable law. Accordingly, in certain circumstances, there may be a degree of uncertainty as to whether a particular transaction would involve a disposition of "entirety or substantially as an entirety" of the Issuer's assets and its subsidiaries taken as a whole. Events of Default Each of the following events shall be an "Event of Default" with respect to any series of the Notes (including the BATIF Notes): (i) Non-Payment: default is made in the payment of: (a) any installment of interest (excluding Additional Amounts) upon any applicable Note as and when the same shall become due and payable, and there is a continuance of such default for a period of 14 days or more; (b) applicable Additional Amounts as and when the same shall become due and payable, and there is a continuance of such default for a period of 14 days; or (c) all or any part of the principal or premium, if any, of any applicable Note as and when the same shall become due and payable either at maturity, upon any redemption, by declaration or otherwise, and there is a continuance of such default for a period of three days; (ii) Breach of Other Obligations: the Issuer or any Guarantor does not perform or comply with any one or more of its other obligations under the applicable Notes or the BATIF Indenture (other than those described in paragraph (i) above) which is not remedied within 30 days (unless a longer period is specified in the BATIF Indenture) after written notice of such default shall have been given to the Issuer by the Trustee or to the Issuer and the Trustee by the holders of at least 25% of the outstanding principal amount of the Notes; (iii) Cross-Default: (a) any other present or future indebtedness for borrowed money of the Issuer or any Guarantor, other than the Notes issued by the Issuer, becomes due and payable prior to its stated maturity by reason of any default or event of default in respect thereof by the Issuer or any Guarantor and remains unpaid; or (b) any such indebtedness for borrowed money is not paid when due or, as the case may be, within any applicable grace period; or (c) the Issuer or any Guarantor fails to pay when due and called upon (after the expiry of any applicable grace period) any amount payable by it under any present or future guarantee for, or indemnity in respect of, any indebtedness for borrowed 40 money and which remains unpaid; provided that (x) payment of the indebtedness for borrowed money is not being contested in good faith and in accordance with legal advice or (y) the aggregate amount of the indebtedness for borrowed money, guarantees and indemnities in respect of which one or more of the events mentioned above in clauses (a), (b) and (c) of this paragraph (iii) has or have occurred and is or are continuing, equals or exceeds £750 million or its equivalent in any other currency of the indebtedness for borrowed money or, if greater, 1.25% of the Total Equity of the Parent, as set out in the "Total Equity" line item in the most recent consolidated group balance sheet of the Parent and its subsidiaries in the Parent's most recent annual report; (iv) Cessation of Guarantees: any Guarantee ceases to be in full force and effect (except as contemplated by the terms of the BATIF Indenture, including as described above under "—Guarantees—Release") or any Guarantor denies or disaffirms in writing its obligations under the BATIF Indenture or Guarantee; (v) Enforcement Proceedings: a distress or execution or other legal process is levied or enforced against or an encumbrancer takes possession of or a receiver, administrative receiver or other similar officer is appointed of the whole or a part of the assets of the Issuer or any Guarantor which is substantial in relation to the BAT Group taken as a whole and is not discharged, stayed, removed or paid out within 45 days after such execution or appointment; (vi) Security Enforced: any mortgage, charge, pledge, lien or other encumbrance, present or future, created or assumed by the Issuer or any Guarantor becomes enforceable against all or substantially all of the assets of the Issuer or any Guarantor, and any step is taken to enforce it (including the taking of possession or the appointment of a receiver, administrative receiver, manager or other similar person) and is not discharged within 45 days; (vii) Insolvency: the Issuer or any Guarantor is insolvent or bankrupt or unable to pay its debts (in respect of companies incorporated in England and Wales, within the meaning of Section 123(1)(b) or (e) or Section 123(2) of the UK Insolvency Act 1986), stops, suspends or threatens to stop or suspend payment of all or a material part of its debts, proposes or makes a general assignment or an arrangement or composition (otherwise than for the purposes of reconstruction, amalgamation, reorganization, merger or consolidation or other similar arrangement) with or for the benefit of its creditors in respect of any of such debts or a moratorium is agreed or declared in respect of or affecting all or a material part of the debts of the Issuer; (viii) Winding-up: an order is made or an effective resolution passed for the winding-up or dissolution or administration of the Issuer or any Guarantor, or the Issuer or any Guarantor shall apply or petition for a winding-up or administration order in respect of itself or ceases or threatens to cease to carry on all or substantially all of its business or operations, in each case except for the purpose of and followed by a reconstruction, amalgamation, reorganization, merger or consolidation or other similar arrangement; or (ix) Analogous Events: any event occurs that under the laws of any relevant jurisdiction has an analogous effect to any of the events referred to in any of the foregoing paragraphs (vii) and (viii).

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41 The BATIF Indenture provides that if an Event of Default occurs and is continuing with respect to the Notes of any series then outstanding, then and in each and every such case (other than certain Events of Default specified in paragraphs (vii), (viii) and (ix) above with respect to the Issuer or any Guarantor), unless the principal of all the Notes of such series shall have already become due and payable, the holders of not less than 25% in aggregate principal amount of the Notes of such affected series then outstanding, by notice in writing to the Issuer, each Guarantor and the Trustee, may declare the entire principal amount of all Notes of such series and interest accrued and unpaid thereon, if any, to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable, without any further declaration or other act on the part of any holder. If certain Events of Default described in paragraph (vii), (viii) or (ix) above occur with respect to the Issuer or any Guarantor and are continuing with respect to a series of Notes, the principal amount of and accrued and unpaid interest on all the Notes of such series issued pursuant to the BATIF Indenture shall become immediately due and payable, without any declaration or other act on the part of the Trustee or any holder. Under certain circumstances, the holders of a majority in aggregate principal amount of the then outstanding Notes of such series, by written notice to the Issuer, each Guarantor and the Trustee, may waive defaults and rescind and annul declarations of acceleration and its consequences, but no such waiver or rescission and annulment shall extend to or shall affect any subsequent default or shall impart any right consequent thereon. The holders of a majority in aggregate principal amount of any series of Notes then outstanding will have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee with respect to the Notes of such series, subject to certain limitations to be specified in the BATIF Indenture, including providing to the Trustee indemnity satisfactory to it. An Event of Default with respect to any series of Notes would not necessarily constitute an event of default with respect to the other series of Notes. The BATIF Indenture provides that notwithstanding the foregoing provisions described under "—Events of Default", if the principal of, premium (if any) or interest on or Additional Amounts with respect to any Note is payable in a currency or currencies other than Dollars and such currency or currencies are not available to the Issuer or any Guarantor for making payment thereof due to the imposition of exchange controls or other circumstances beyond the control of the Issuer or such Guarantor (each, a "Conversion Event"), the Issuer and the Guarantor will be entitled to satisfy its obligations to Holders of the Notes by making such payment in Dollars in an amount equal to the Dollar equivalent of the amount payable in such other currency, as determined by the Issuer or the Guarantor making such payment, as the case may be, based on the Exchange Rate on the date of such payment, or, if such rate is not then available, on the basis of the most recently available Exchange Rate. Notwithstanding the foregoing provisions, any payment made under such circumstances in Dollars where the required payment is in a currency other than Dollars will not constitute an Event of Default under the BATIF Indenture. Promptly after the occurrence of a Conversion Event, the Issuer or the relevant Guarantor shall give written notice thereof to the Trustee and to the Paying Agent; and the Trustee, promptly after receipt of such notice, shall give notice thereof in the manner provided in the BATIF Indenture to the Holders of the relevant series of Notes. Promptly after the making of any payment in Dollars as a result of a Conversion Event, the Issuer or the Guarantor making such payment, as the case may be, shall give notice in the manner provided in the BATIF Indenture to the Holders, setting forth the applicable Exchange Rate and describing the calculation of such payments. No holder of the Notes of a series will have any right to institute any action or proceeding at law or in equity or in bankruptcy or otherwise upon or under or with respect to the BATIF Indenture, or for the appointment of a trustee, receiver, liquidator, custodian or other similar official or for any other remedy 42 under the BATIF Indenture (except suits for the enforcement of payment of overdue principal or interest) unless (1) the holder of a Note gives to the Trustee written notice of a continuing Event of Default, (2) the holders of at least 25% in principal amount of the outstanding Notes of such series have made a written request to the Trustee to institute such proceeding as Trustee, (3) the holder or holders of Notes offer, and if requested, provide to the Trustee indemnity satisfactory to the Trustee against any loss, liability or expense, (4) the Trustee does not comply with the request within 60 days after receipt of the request and the offer of indemnity and (5) during such 60-day period the holders of a majority in aggregate principal amount of the outstanding Notes of such series have not given the Trustee a direction inconsistent with the request. The holder of a Note may not use the BATIF Indenture to prejudice the rights of another holder of a Note or to obtain a preference or priority over another holder of a Note (it being understood that the Trustee does not have an affirmative duty to ascertain whether or not such actions or forbearances are unduly prejudicial to such holders). Satisfaction and Discharge The BATIF Indenture provides that BAT may, subject to satisfying certain conditions, discharge certain obligations to the holders of Notes of any series of Notes that have not already been delivered to the Trustee for cancellation and that either have become due and payable or will become due and payable within one year (or scheduled for redemption within one year) by depositing with the Trustee or Paying Agent, in trust, funds in an amount sufficient to pay the entire indebtedness on such series of Notes in respect of principal and premium, if any, and interest, if any, to the date of such deposit (if such Notes have become due and payable) or to the maturity thereof or redemption date, as the case may be, along with an officer's certificate and an opinion of counsel stating that all conditions precedent relating to the satisfaction and discharge of the BATIF Indenture have been complied with. Legal Defeasance and Covenant Defeasance The BATIF Indenture provides that the Issuer will have the option either (a) to be deemed (together with each Guarantor) to have paid and discharged the entire indebtedness represented by, and obligations under, a series of Notes and the applicable Guarantees and to have satisfied all the obligations under the BATIF Indenture relating to the series of Notes (except for certain obligations, including those relating to the defeasance trust and obligations to register the transfer or exchange of Notes, to replace mutilated, destroyed, lost or stolen Notes and to maintain paying agencies) on the 91st day after the applicable conditions described below have been satisfied or (b) to cease (together with each Guarantor) to be under any obligation to comply with the covenants described above under " —Covenants of the Issuer and the Guarantors—Negative Pledge", "—Covenants of the Issuer and the Guarantors—Limitation on Mergers, Consolidations, Amalgamations and Combinations", and non-compliance with such covenants and the occurrence of all events described above under "—Events of Default" will not give rise to any Event of Default under the BATIF Indenture, at any time after the applicable conditions described below have been satisfied. In order to exercise either defeasance option, the Issuer must (i) deposit with the Trustee, irrevocably in money or Government Obligations (as defined in the BATIF Indenture), funds sufficient in the opinion of a certified public accounting firm of national reputation for the payment of principal of and interest on the applicable outstanding Notes of any series to and including the Redemption Date irrevocably designated by the Issuer on or prior to the date of deposit of such money or Government Obligations, and must (ii) comply with certain other conditions, including delivering to the Trustee an opinion of U.S. counsel to the effect that beneficial owners of the applicable Notes will not recognize income, gain or loss for United States Federal income tax purposes as a result of the exercise of such option and will be subject to United States Federal income tax on the same amount and in the same manner and at the same time as would have been the case if such option had not been exercised and, in the case of clause (a) in the previous 43 paragraph, which opinion must state that such opinion is based on a ruling received from or published by the United States Internal Revenue Service or on a change in the applicable U.S. Federal income tax laws after the date of issuance of the relevant Notes. Modification and Waiver Without Consent of Noteholders The BATIF Indenture contains provisions permitting the Issuer, the Guarantors and the Trustee, without the consent of the holders of any of the applicable Notes at any time outstanding, from time to time and at any time, to enter into a supplemental indenture amending or supplementing such BATIF Indenture, the Notes or the Guarantees in order to: • convey, transfer, assign, mortgage or pledge to the holders of the applicable Notes or any person acting on their behalf as security for the applicable Notes any property or assets; • evidence the succession of another person to the Issuer or any Guarantor, as the case may be, or successive successions, and the assumption by the successor person(s) of the covenants, agreements and obligations of the Issuer or any Guarantor, as the case may be, pursuant to the BATIF Indenture; • evidence and provide for the acceptance of appointment of a successor or successors to the Trustee and/or the Paying Agent, Transfer Agent, Calculation Agent and Registrar, as applicable; • add to the covenants of, or the restrictions, conditions or provisions applicable to, the Issuer and any Guarantor, as the case may be, such further covenants, restrictions, conditions or provisions as the Issuer and any Guarantor, as the case may be, shall consider to be for the protection of the holders of the applicable Notes issued pursuant to the BATIF Indenture, including to eliminate one or both prongs of the release provision under "—Guarantees—Release", and to make the occurrence, or the occurrence and continuance, of a default in any such additional covenants, restrictions, conditions or provisions an Event of Default under the BATIF Indenture permitting the enforcement of all or any of the several remedies provided in the BATIF Indenture; provided that, in respect of any such additional covenant, restriction, condition or provision, such supplemental indenture may provide for a particular period of grace after default (which may be shorter or longer than that allowed in the case of other defaults) or may limit the remedies available to the Trustee upon such an Event of Default; • modify the restrictions on, and procedures for, resale and other transfers of the applicable Notes pursuant to law, regulation or practice relating to the resale or transfer of restricted securities generally; • cure any ambiguity or to correct or supplement any provision contained in the BATIF Indenture, the Notes, or the Guarantees which may be defective or inconsistent with any other provision contained therein or to make such other provision in regard to matters or questions arising under the BATIF Indenture, the Notes or the Guarantees as the Issuer, any Guarantor or the Trustee may deem necessary or desirable and which will not, in the opinion of the Issuer, adversely affect the interests of the holders of the applicable Notes in any material respect; • issue an unlimited aggregate principal amount of Notes under the BATIF Indenture or to "reopen" the applicable series of Notes and create and issue additional notes having substantially identical terms and conditions as the applicable Notes (or in all respects except as to issue price, 44 denomination, rate of interest, Maturity Date and the date from which interest, if any, shall accrue, and except as may otherwise be provided in or pursuant to such officer's certificate or supplemental indenture relating thereto) so that the additional notes are consolidated and form a single series with the outstanding applicable Notes; and • evidence the addition of any new Guarantor of the Notes and the BATIF Indenture, or the release of any Guarantor from its obligations with respect to the Notes and the BATIF Indenture, pursuant to the terms of the BATIF Indenture. With Consent of Noteholders The BATIF Indenture contains provisions permitting the Issuer, each Guarantor and the Trustee, with the consent of the holders of not less than a majority in aggregate principal amount of all series of the Notes affected by such supplemental indenture (voting as one class) at the time outstanding under the BATIF Indenture (including consents obtained in connection with a tender offer or exchange offer for the applicable Notes), from time to time and at any time, to enter into a supplemental indenture for the purpose of amending, waiving or otherwise modifying the provisions of the BATIF Indenture, the Notes and the Guarantees, or adding any provisions to or changing in any manner or eliminating any of the provisions of the applicable Notes or of modifying in any manner the rights of the holders of the applicable Notes; provided, that no such supplemental indenture may, without the consent of the holder of each of the Notes so affected: • change the stated maturity of the applicable Note of, or the date for payment of any principal of, or installment of interest on, any applicable Note, or reduce the amount of principal of an Original Issue Discount Note that would be due and payable upon a declaration of acceleration of the maturity thereof pursuant to the provisions of the BATIF Indenture; or • reduce the principal amount of or the rate or amount of interest on any applicable Note or Additional Amounts payable with respect thereto or reduce the amount payable thereon in the event of redemption or default or change the method for determining the interest rate thereon; or • change the currency of payment of principal of or interest on any applicable Note or Additional Amounts payable with respect thereto; or change the obligation of the Issuer or any Guarantor, as the case may be, to pay Additional Amounts (except as otherwise permitted by such applicable Note); or • impair the right to institute suit for the enforcement of any such payment on or with respect to any applicable Note; or • reduce the percentage of the aggregate principal amount of the applicable Notes outstanding the consent of whose holders is required for any such supplemental indenture; or • reduce the aggregate principal amount of any applicable Note outstanding necessary to modify or amend the BATIF Indenture or any such Note or to waive any future compliance or past default or reduce the quorum requirements or the percentage of aggregate principal amount of any applicable Notes outstanding required for the adoption of any action at any meeting of holders of such Notes or to reduce the percentage of the aggregate principal amount of such Notes outstanding necessary to rescind or annul any declaration of the principal of, or all accrued and unpaid interest on, any Note to be due and payable,

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45 provided that no consent of any holder of any applicable Note shall be necessary to permit the Trustee, the Issuer and each Guarantor to execute supplemental indentures as described under "—Without Consent of Noteholders" above. Any modifications, amendments or waivers to the BATIF Indenture or to the conditions of the applicable Notes will be conclusive and binding on all holders of the applicable Notes, whether or not they have consented to such action or were present at the meeting at which such action was taken, and on all future holders of the applicable Notes, whether or not notation of such modifications, amendments or waivers is made upon such Notes. Any instrument given by or on behalf of any holder of such a Note in connection with any consent to any such modification, amendment or waiver will be irrevocable once given and will be conclusive and binding on all subsequent registered holders of such Note. Prescription Under New York's statute of limitations, any legal action upon the Notes in respect of interest or principal must be commenced within six years after the payment thereof is due. Notice Notices to holders of Notes will be given by first-class mail postage prepaid to the last addresses of such holders as they appear in the Notes register; provided, no such mailing will be required so long as any Global Notes representing the Notes are held in their entirety on behalf of the Depositary or a clearing system, or any of its participants, as there may be substituted for the mailing of notice to holders of Notes described above the delivery of the relevant. Such notices will be deemed to have been given on the date of such mailing; notices to the Depositary or a clearing system, and (if applicable) its participants, for communication by them to the entitled accountholders. Any such notice shall be deemed to have been given on the day on which the said notice was given to the Depositary or a clearing system, and (if applicable) its participants. Listing The BATIF Notes are listed on the New York Stock Exchange. Consent to Service Each of the Issuer and the non-U.S. Guarantors has initially designated BATCAP as its authorized agent for service of process in any legal suit, action or proceeding arising out of or relating to the performance of its obligations under the BATIF Indenture, the supplemental indenture and the BATIF Notes brought in any state or federal court in the Borough of Manhattan, the City of New York, and the Guarantors will irrevocably submit (but for these purposes only) to the non-exclusive jurisdiction of any such court in any such suit, action or proceeding. Governing Law The BATIF Indenture, the Notes and the Guarantees are, and any applicable supplemental indentures shall be, governed by and construed in accordance with the laws of the State of New York, without regard to principles of conflicts of laws thereof. 46 Regarding the Trustee and Agents Citibank, N.A. is the trustee under the BATIF Indenture. Citibank, N.A. is appointed by the Issuer to act as registrar, transfer agent, calculation agent and initial paying agent for the BATIF Notes. The Issuer can change the registrar, transfer agent, calculation agent or paying agent without prior notice to the holders of the BATIF Notes. The address of Citibank, N.A., as paying agent, is Citibank, N.A., Agency & Trust, 388 Greenwich Street, New York, NY 10013. From time to time, Citibank, N.A. and its respective affiliates perform various other services for the BAT Group and its affiliates (including acting as a lender under one or more of the BAT Group's lending facilities from time to time). The BATIF Indenture contains limitations on the rights of the trustee, if it becomes a creditor of the Issuer or any Guarantor, to obtain payment of claims in some cases, or to realize on property received in respect of any of these claims as security or otherwise. The Trustee is permitted to engage in other transactions. However, if the Trustee acquires any conflicting interest (as defined in the TIA), it must either eliminate its conflict within 90 days or resign. The BATIF Indenture provides that except during the continuance of an Event of Default, the Trustee will perform only such duties as are specifically set forth in such BATIF Indenture. During the continuance of an Event of Default of which the Trustee has received written notice, the Trustee will exercise such of the rights and powers vested in it under the BATIF Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of such person's own affairs. D. Description of the Notes Issued Under the 2019 BATCAP Indenture The following is a summary of the material provisions of the 2019 BATCAP Indenture (as described below), the applicable supplemental indentures and the Notes. Any capitalized term used herein but not defined shall have the meaning assigned to such term in the 2019 BATCAP Indenture, the applicable supplemental indenture or under "—Certain Definitions". The following summary does not purport to be complete and is subject to, and is qualified in its entirety by reference to, all of the provisions of the 2019 BATCAP Indenture, the applicable supplemental indentures and those terms made a part of the 2019 BATCAP Indenture and/or applicable supplemental indentures by reference to the TIA. GENERAL The 4.625% Notes due 2033 (the "2033 4.625% Notes"), 5.350% Notes due 2032 (the "2032 5.350% Notes"), 5.625% Notes due 2035 (the "2035 Notes"), 6.250% Notes due 2055 (the "2055 Notes"), 5.834% Notes due 2031 (the "2031 5.834% Notes"), the 6.000% Notes due 2034 (the "2034 Notes"), 6.343% Notes due 2030 (the "2030 6.343% Notes"), the 6.421% Notes due 2033 (the "2033 6.421% Notes"), the 7.079% Notes due 2043 (the "2043 Notes"), the 7.081% Notes due 2053 (the "2053 Notes"), the 7.750% Notes due 2032 (the "2032 7.750% Notes"), the 4.742% Notes due 2032 (the "2032 4.742% Notes"), the 5.650% Notes due 2052 (the "2052 Notes"), the 2.259% Notes due 2028 (the "2028 Notes"), the 2.726% Notes due 2031 (the "2031 2.726% Notes"), the 3.734% Notes due 2040 (the "2040 Notes"), the 3.984% Notes due 2050 (the "2050 3.984% Notes"), the 4.700% Notes due 2027 (the "2027 4.700% Notes"), the 4.906% Notes due 2030 (the "2030 4.906% Notes"), the 5.282% Notes due 2050 (the "2050 5.282% Notes"), the 3.215% Notes due 2026 (the "2026 Notes"), the 3.462% Notes due 2029 (the "2029 3.462% Notes") and the 4.758% Notes due 2049 (the "2049 Notes" and, together with the 2033 4.625% Notes, the 2032 5.350% Notes, the 2035 Notes, the 2055 Notes, the 2031 5.834% Notes, the 2034 Notes, the 2030 6.343% Notes, the 2033 6.421% Notes, the 2043 Notes, the 2053 Notes, the 2032 7.750% Notes, the 2032 4.742% Notes, the 2052 Notes, the 2028 Notes, the 2031 2.726% Notes, the 2040 Notes, the 2050 3.984% Notes, the 2027 4.700% Notes, the 2030 4.906% Notes, the 2050 5.282% Notes, the 2026 47 Notes and the 2029 3.462% Notes, the "BATCAP Notes") were issued by B.A.T Capital Corporation ("BATCAP" or the "Issuer"). In this "Description of the Notes Issued Under the 2019 BATCAP Indenture", we refer to each series of the BATCAP Notes as a "series" of BATCAP Notes. The 2033 4.625% Notes will mature on March 22, 2033. The 2032 5.350% Notes will mature on August 15, 2032. The 2035 Notes will mature on August 15, 2035. The 2055 Notes will mature on August 15, 2055. The 2031 5.834% Notes will mature on February 20, 2031. The 2034 Notes will mature on February 20, 2034. The 2030 6.343% Notes will mature on August 2, 2030. The 2033 6.421% Notes will mature on August 2, 2033. The 2043 Notes will mature on August 2, 2043. The 2053 Notes will mature on August 2, 2053. The 2032 7.750% Notes will mature on October 19, 2032. The 2032 4.742% Notes will mature on March 16, 2032. The 2052 Notes will mature on March 16, 2052. The 2028 Notes will mature on March 25, 2028. The 2031 2.726% Notes will mature on March 25, 2031. The 2040 Notes will mature on September 25, 2040. The 2050 3.984% Notes will mature on September 25, 2050. The 2027 4.700% Notes will mature on April 2, 2027. The 2030 4.906% Notes will mature on April 2, 2030. The 2050 5.282% Notes will mature on April 2, 2050. The 2026 Notes will mature on September 6, 2026. The 2029 3.462% Notes will mature on September 6, 2029. The 2049 Notes will mature on September 6, 2049. The BATCAP Notes were issued in registered form and treated as twenty-three separate series of debt securities and were each issued under a separate supplemental indenture to the indenture dated as of September 6, 2019 (as amended or supplemented from time to time, the "2019 BATCAP Indenture") by and among BATCAP, as Issuer, British American Tobacco p.l.c. ("BAT" or the "Parent"), B.A.T. International Finance p.l.c. ("BATIF"), B.A.T. Netherlands Finance B.V. ("BATNF") and, unless its guarantee is released in accordance with the 2019 BATCAP Indenture, Reynolds American Inc. ("RAI"), each as a guarantor, Citibank, N.A., as trustee (the "Trustee"), authentication agent, registrar, transfer agent, calculation agent and initial paying agent (in such several capacities under the 2019 BATCAP Indenture, the "Authentication Agent", "Registrar", "Transfer Agent", "Calculation Agent" and "Paying Agent", respectively). Each guarantee in respect of the BATCAP Notes is referred to herein as a "Guarantee" and each entity that provides a Guarantee is referred to herein as a "Guarantor". In this "Description of the Notes Issued Under the 2019 BATCAP Indenture", the terms "holder", "Noteholder" and other similar terms refer to a "registered holder" of Notes, and not to a beneficial owner of a book-entry interest in any BATCAP Notes. PRINCIPAL, MATURITY AND INTEREST The obligations of the Issuer under the BATCAP Notes and 2019 BATCAP Indenture are fully and unconditionally guaranteed on a joint and several and senior and unsecured basis by each of the Parent, BATIF, BATNF and, unless its guarantee is released in accordance with the 2019 BATCAP Indenture, RAI. The BATCAP Notes were issued in the following aggregate principal amounts, with outstanding aggregate principal amounts as of December 31, 2025 and maturity dates as follows:2 48 Series of BATCAP Notes Initial aggregate principal amount Outstanding aggregate principal amount Maturity date 2033 4.625% Notes $750,000,000 $750,000,000 March 22, 2033 2032 5.350% Notes $1,000,000,000 $1,000,000,000 August 15, 2032 2035 Notes $1,000,000,000 $1,000,000,000 August 15, 2035 2055 Notes $500,000,000 $500,000,000 August 15, 2055 2031 5.834% Notes $850,000,000 $850,000,000 February 20, 2031 2034 Notes $850,000,000 $850,000,000 February 20, 2034 2030 6.343% Notes $1,000,000,000 $1,000,000,000 August 2, 2030 2033 6.421% Notes $1,250,000,000 $1,250,000,000 August 2, 2033 2043 Notes $750,000,000 $750,000,000 August 2, 2043 2053 Notes $1,000,000,000 $1,000,000,000 August 2, 2053 2032 7.750% Notes $600,000,000 $600,000,000 October 19, 2032 2032 4.742% Notes $900,000,000 $900,000,000 March 16, 2032 2052 Notes $600,000,000 $600,000,000 March 16, 2052 2028 Notes $1,750,000,000 $1,750,000,000 March 25, 2028 2031 2.726% Notes $1,250,000,000 $1,250,000,000 March 25, 2031 2040 Notes $750,000,000 $405,565,000 September 25, 2040 2050 3.984% Notes $1,000,000,000 $312,962,000 September 25, 2050 2027 4.700% Notes $900,000,000 $900,000,000 April 2, 2027 2030 4.906% Notes $1,000,000,000 $1,000,000,000 April 2, 2030 2050 5.282% Notes $500,000,000 $500,000,000 April 2, 2050 2026 Notes $1,000,000,000 $1,000,000,000 September 6, 2026 2029 3.462% Notes $500,000,000 $500,000,000 September 6, 2029 2049 Notes $1,000,000,000 $1,000,000,000 September 6, 2049 Interest The Notes bear interest per annum as follows: Series of BATCAP Notes Interest rate per annum 2033 4.625% Notes 4.625% 2032 5.350% Notes 5.350% 2035 Notes 5.625% 2055 Notes 6.250% 2031 5.834% Notes 5.834% 2034 Notes 6.000% 2030 6.343% Notes 6.343% 2033 6.421% Notes 6.421% 2043 Notes 7.079% 2053 Notes 7.081% 2032 7.750% Notes 7.750% 2032 4.742% Notes 4.742% 2052 Notes 5.650% 2028 Notes 2.259% 2031 2.726% Notes 2.726% 2040 Notes 3.734% 2050 3.984% Notes 3.984% 2027 4.700% Notes 4.700% 2030 4.906% Notes 4.906% 2050 5.282% Notes 5.282%

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49 2026 Notes 3.215% 2029 3.462% Notes 3.462% 2049 Notes 4.758% The BATCAP Notes will bear interest from the date of the initial issuance of such BATCAP Notes or from the most recent interest payment date to which interest has been paid or provided for, payable semi- annually in arrear on each series' respective Interest Payment Dates (as defined in the table below) of each year, commencing on each series' respective Initial Interest Payment Date (as defined in the table below) until each series' respective maturity date, unless previously purchased and cancelled or redeemed by the Issuer, to the person in whose name any such BATCAP Note is registered at the close of business on the 15th calendar day preceding each Interest Payment Date, whether or not such day is a Business Day (each, a "Record Date") notwithstanding any transfer or exchange of such BATCAP Notes subsequent to the Record Date and prior to such Interest Payment Date, except that, if and to the extent the Issuer shall default in the payment of the interest due on such Interest Payment Date, and the applicable grace period shall have expired, such defaulted interest may at the option of the Issuer be paid to the persons in whose names such outstanding BATCAP Notes are registered at the close of business on a subsequent Record Date (which shall not be less than five Business Days prior to the date of payment of such defaulted interest) established by notice sent by or on behalf of the Issuer to the holders of such BATCAP Notes, not less than 15 days preceding such subsequent Record Date. Series of BATCAP Notes Interest Payment Dates Initial Interest Payment Date 2033 4.625% Notes March 22 and September 22 March 22, 2026 2032 5.350% Notes August 15 and February 15 August 15, 2025 2035 Notes August 15 and February 15 August 15, 2025 2055 Notes August 15 and February 15 August 15, 2025 2031 5.834% Notes August 20 and February 20 August 20, 2024 2034 Notes August 20 and February 20 August 20, 2024 2030 6.343% Notes February 2 and August 2 February 2, 2024 2033 6.421% Notes February 2 and August 2 February 2, 2024 2043 Notes February 2 and August 2 February 2, 2024 2053 Notes February 2 and August 2 February 2, 2024 2032 7.750% Notes April 19 and October 19 April 19, 2023 2032 4.742% Notes March 16 and September 16 September 16, 2022 2052 Notes March 16 and September 16 September 16, 2022 2028 Notes March 25 and September 25 March 25, 2021 2031 2.726% Notes March 25 and September 25 March 25, 2021 2040 Notes March 25 and September 25 March 25, 2021 2050 3.984% Notes March 25 and September 25 March 25, 2021 2027 4.700% Notes April 2 and October 2 October 2, 2020 2030 4.906% Notes April 2 and October 2 October 2, 2020 2050 5.282% Notes April 2 and October 2 October 2, 2020 2026 Notes March 6 and September 6 March 6, 2020 2029 3.462% Notes March 6 and September 6 March 6, 2020 50 2049 Notes March 6 and September 6 March 6, 2020 Interest is computed on the basis of a 360-day year consisting of twelve 30-day months, or in the case of an incomplete month, the number of days elapsed. If the date on which any interest payment or principal payment is to be made is not a Business Day, such payment will be made on the next day which is a Business Day, without any further interest or other amounts being paid or payable in connection therewith. A "Business Day" refers to any day which is not, in London or New York City, or any other place of payment, a Saturday, Sunday, legal holiday or a day on which banking institutions are authorized or obligated by law or regulation to close. Form and Denomination The BATCAP Notes of each series were issued in fully registered form and only in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof, and were issued initially as global notes representing the BATCAP Notes of each series (collectively, the "Global Notes"). The Global Notes were (i) registered in the name of the Depositary or the nominee of such Depositary, in each case for the credit to an account of a member of, or direct or indirect participant in, the Depositary; and (ii) delivered to Citibank, N.A. as custodian for such Depositary. Further Issues The aggregate principal amount of notes (including each series of BATCAP Notes) issuable under the 2019 BATCAP Indenture (the "Notes") is unlimited. The Issuer may, from time to time, without notice to or the consent of the holders of the Notes, issue Notes of a new series or "reopen" any series of the Notes (including any series of BATCAP Notes) and create and issue additional Notes having substantially identical terms and conditions as the then-outstanding Notes of a series (or in all respects except as to issue date, issue price and the date from which interest, if any, shall accrue and except as may otherwise be provided in or pursuant to an officer's certificate or any supplemental indenture relating thereto) so that the additional Notes are consolidated and form a single series of Notes with the outstanding Notes of such series, as the case may be, provided that if the additional Notes are not fungible with the outstanding Notes of the relevant series for United States Federal income tax purposes, the additional Notes will have separate CUSIPs, ISINs, or other identifying numbers. Status of the Notes and Guarantees The BATCAP Notes are unsecured and unsubordinated obligations of the Issuer and rank pari passu in right of payment among themselves and with all other direct, unsecured and unsubordinated obligations of the Issuer (except those obligations preferred by statute or operation of law). Each Guarantor fully and unconditionally guarantees, on a senior, unsecured basis, the due and punctual payment (and not collectability) of the principal of and interest on the BATCAP Notes (and the payment of additional amounts described under " —Additional Amounts" below) and other obligations under the 2019 BATCAP Indenture when and as the same shall become due and payable, whether at stated maturity, by declaration of acceleration, call for redemption or otherwise. Each Guarantee is an unsecured and unsubordinated obligation of the respective Guarantor and rank pari passu in right of payment with all other direct, unsecured and unsubordinated obligations of such Guarantor (except those obligations preferred by statute or operation of law). The Issuer and each Guarantor are subject to a negative pledge with respect to certain types of indebtedness, which are discussed in " —Covenants of the Issuer and the Guarantors— Negative Pledge". 51 Guarantees Release The 2019 BATCAP Indenture and the applicable supplemental indentures provide, that, without the consent of the Trustee or the Noteholders, any Guarantor that is a subsidiary of the Parent (a "Subsidiary Guarantor"), other than BATIF and BATNF, will automatically and unconditionally be released from all obligations under its Guarantee, and such Guarantee shall thereupon terminate and be discharged and of no further force or effect, in the event that (1) its guarantee of all then outstanding notes issued under the EMTN Programme is released or (2) at substantially the same time its Guarantee of the Notes is terminated, the Subsidiary Guarantor is released from all obligations in respect of indebtedness for borrowed money for which such Subsidiary Guarantor is an obligor (as a guarantor or borrower). For purposes of this paragraph, the amount of a Subsidiary Guarantor's indebtedness for borrowed money shall not include (A) the Notes issued pursuant to the 2019 BATCAP Indenture (including the BATCAP Notes), (B) any other debt the terms of which permit the termination of such Subsidiary Guarantor's guarantee of such debt under similar circumstances, as long as such Subsidiary Guarantor's obligations in respect of such other debt are terminated at substantially the same time as its Guarantee of the Notes (including the BATCAP Notes), (C) any debt that is being refinanced at substantially the same time that the Guarantee of the Notes (including the BATCAP Notes) is being released, provided that any obligations of the relevant Subsidiary Guarantor in respect of the debt that is incurred in the refinancing shall be included in the calculation of the relevant Subsidiary Guarantor's indebtedness for borrowed money and (D) for the avoidance of doubt, any debt in respect of which such Subsidiary Guarantor is an obligor (as a guarantor or borrower) (i) between or among the Parent and any subsidiary or subsidiaries thereof or (ii) between or among any subsidiaries of the Parent. As of the date of this summary, RAI is the only Subsidiary Guarantor to which the above provision is relevant. Under the EMTN Programme, RAI's guarantee is released if at any time the aggregate amount of indebtedness for borrowed money for which the Subsidiary Guarantor is an obligor does not exceed 10% of the outstanding long-term debt of BAT as reflected in the balance sheet included in BAT's most recent publicly released interim or annual consolidated financial statements, as evidenced by a certificate to such effect addressed to the trustee under the EMTN Programme and signed by a director of BAT. Additional Amounts Each of the Parent, BATIF and BATNF will make payments pursuant to the applicable Guarantee without withholding or deduction for or on account of any present or future tax, levy, impost or other similar governmental charge ("Taxes") imposed, assessed, levied or collected by or for the account of the United Kingdom (in the case of a payment by the Parent or BATIF) or The Netherlands (in the case of a payment by BATNF), including in each case any political subdivision thereof or any authority thereof having the power to tax (a "Relevant Taxing Jurisdiction"), unless such withholding or deduction is required by law. If any such Guarantor is required by a Relevant Taxing Jurisdiction to so withhold or deduct such Taxes, such Guarantor will pay to the holder such additional amounts ("Additional Amounts") as will result in the receipt by the holder of such amounts as would have been received by it if no such withholding or deduction of Taxes had been required; provided, however, that no Guarantor shall be required to pay any Additional Amounts for or on account of: (a) any Taxes that would not have been so imposed, assessed, levied or collected but for the Holder or beneficial owner of the applicable Note or Guarantee (or a fiduciary, settlor, beneficiary, member or shareholder of, or possessor of a power over, such Holder, if such Holder is an estate, trust, partnership or corporation) being or having been a domiciliary, 52 national or resident of, or engaging or having been engaged in a trade or business or maintaining or having maintained a permanent establishment or being or having been physically present in, a Relevant Taxing Jurisdiction or otherwise having or having had some connection with a Relevant Taxing Jurisdiction other than the holding or ownership of, or the collection of principal of, and premium (if any) or interest on, a Note or the enforcement of the applicable Note or Guarantee, as the case may be; (b) any Taxes that would not have been so imposed, assessed, levied or collected but for the fact that, where presentation is required in order to receive payment, the applicable Note or Guarantee was presented more than 30 days after the date on which such payment became due and payable or was provided for, whichever is later, except to the extent that the Holder or beneficial owner thereof would have been entitled to Additional Amounts had the applicable Note or Guarantee been presented for payment on any day during such 30-day period; (c) any estate, inheritance, gift, sales, transfer, personal property or similar Taxes; (d) any Taxes that are payable otherwise than by withholding or deduction from payments on or in respect of the applicable Note or Guarantee; (e) any Taxes that would not have been so imposed, assessed, levied or collected but for the failure by the Holder or the beneficial owner of the applicable Guarantee to (i) provide any certification, identification, information, documents or other evidence concerning the nationality, residence or identity of the Holder or the beneficial owner or its connection with a Relevant Taxing Jurisdiction; or (ii) make any valid or timely declaration or claim or satisfy any other reporting, information or procedural requirements relating to such matters if, in either case, compliance is required by statute, regulation, relevant income tax treaty or administrative practice of a Relevant Taxing Jurisdiction as a condition to relief or exemption from such Taxes; (f) any Taxes imposed or withheld pursuant to Sections 1471 through 1474 of the Code (or any amended or successor provisions), any U.S. Treasury regulations promulgated thereunder, any official interpretations thereof or any agreements entered into in connection with the implementation thereof ("FATCA Withholding"); or (g) any combination of the Taxes described in clauses (a) through (f) above. In addition, in the case of the 2033 4.625% Notes, the 2032 5.350% Notes, the 2035 Notes, the 2055 Notes, the 2031 5.834% Notes, the 2034 Notes, the 2030 6.343% Notes, the 2033 6.421% Notes, the 2043 Notes, the 2053 Notes, the 2032 7.750% Notes, the 2032 4.742% Notes, the 2052 Notes, the 2028 Notes, the 2031 2.726% Notes, the 2040 Notes, the 2050 3.984% Notes, the 2027 4.700% Notes, the 2030 4.906% Notes, and the 2050 5.282% Notes, no Guarantor shall be required to pay any Additional Amounts for or on account of any taxes imposed or to be withheld pursuant to the Dutch Withholding Tax Act 2021 (Wet bronbelasting 2021). In addition, Additional Amounts will not be paid with respect to any payment of the principal of, or premium (if any) or interest on, any Note or any payment pursuant to the applicable Guarantee to any Holder that is a fiduciary, a partnership, a limited liability company or any person other than the sole beneficial owner of such payment to the extent a beneficiary or settlor with respect to such fiduciary, a member of such partnership, an interest holder in such limited liability company or a beneficial owner that would not have been entitled to such amounts had such beneficiary, settlor, member, interest holder or beneficial owner been the Holder of the applicable Note or Guarantee.

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53 Unless otherwise stated, references in any context to the payment of principal of, and premium (if any) or interest on, any Note, or to any payment pursuant to a Guarantee will be deemed to include payment of Additional Amounts to the extent that, in such context, Additional Amounts are, were or would be payable in respect thereof. Redemption The Notes are subject to optional redemption by the Issuer as described below under "—Optional Redemption". The Notes are also subject to optional redemption by the Issuer in the event of certain changes in tax laws applicable to payments in respect of the Notes as described below under "— Redemption for Tax Reasons". Optional Redemption of the 2033 4.625% Notes, 2032 5.350% Notes, 2035 Notes, 2055 Notes, 2031 5.834% Notes, 2034 Notes, 2030 6.343% Notes, 2033 6.421% Notes, 2043 Notes, 2053 Notes, 2032 7.750% Notes, 2032 4.742% Notes and 2052 Notes (the "post-2021 BATCAP Notes") The Issuer may redeem the post-2021 BATCAP Notes, in whole or in part, at the Issuer's option, at any time and from time to time before the applicable Par Call Date (as defined below), at a redemption price equal to the greater of (x) 100% of the principal amount of the series of post-2021 BATCAP Notes to be redeemed and (y) the sum of the present values of the applicable Remaining Scheduled Payments (as defined below) discounted to the date of redemption (the "Redemption Date") on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months or, in the case of an incomplete month, the number of days elapsed) at the Treasury Rate (as defined below) plus, in the case of each respective series of post-2021 BATCAP Notes as follows: 2033 4.625% Notes 15 basis points 2032 5.350% Notes 20 basis points 2035 Notes 25 basis points 2055 Notes 30 basis points 2031 5.834% Notes 25 basis points 2034 Notes 30 basis points 2030 6.343% Notes 35 basis points 2033 6.421% Notes 40 basis points 2043 Notes 45 basis points 2053 Notes 50 basis points 2032 7.750% Notes 50 basis points 2032 4.742% Notes 40 basis points 2052 Notes 50 basis points together with, in each case, accrued and unpaid interest on the principal amount of the post-2021 BATCAP Notes to be redeemed to, but excluding, the Redemption Date. If the Issuer elects to redeem a series of post-2021 BATCAP Notes on or after the applicable Par Call Date, the Issuer will pay an amount equal to 100% of the principal amount of the post-2021 BATCAP Notes redeemed, plus accrued and unpaid interest, if any, to, but excluding, the Redemption Date. In connection with such optional redemption the following defined terms apply: • Par Call Date means (i) January 22, 2033 with respect to any 2033 4.625% Notes (two months prior to the maturity date of the 2033 4.625% Notes), (ii) June 15, 2032 with respect to any 2032 5.350% Notes (two months prior to the maturity date of the 2032 5.350% Notes), (iii) May 15, 54 2035 with respect to any 2035 Notes (three months prior to the maturity of the 2035 Notes), (iv) February 15, 2055 with respect to any 2055 Notes (six months prior to the maturity date of the 2055 Notes), (v) December 20, 2030 with respect to any 2031 5.834% Notes (two months prior to the maturity date of the 2031 5.834% Notes), (vi) November 20, 2033 with respect to any 2034 Notes (three months prior to the maturity date of the 2034 Notes), (vii) June 2, 2030 with respect to any 2030 6.343% Notes (two months prior to the maturity date of the 2030 6.343% Notes), (viii) May 2, 2033 with respect to any 2033 6.421% Notes (three months prior to the maturity date of the 2033 6.421% Notes), (ix) February 2, 2043 with respect to any 2043 Notes (six months prior to the maturity date of the 2043 Notes), (x) February 2, 2053 with respect to any 2053 Notes (six months prior to the maturity date of the 2053 Notes), (xi) July 19, 2032 with respect to any 2032 7.750% Notes (three months prior to the maturity date of the 2032 7.750% Notes), (xii) December 16, 2031 with respect to any 2032 4.742% Notes (three months prior to the maturity date of the 2032 4.742% Notes) and (xiii) September 16, 2051 with respect to any 2052 Notes (six months prior to the maturity date of the 2052 Notes). • Remaining Scheduled Payments means, with respect to each post-2021 BATCAP Note to be redeemed, the remaining scheduled payments of the principal thereof and interest thereon that would be due from and including the related Redemption Date, but for such redemption, to but excluding the relevant Par Call Date; provided, however, that if that Redemption Date is not an Interest Payment Date with respect to such post-2021 BATCAP Notes, the amount of the next succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued thereon to, but excluding, that Redemption Date. • Treasury Rate means, with respect to any Redemption Date, the yield determined by the Issuer in accordance with the following two paragraphs: (1) The Treasury Rate shall be determined by the Issuer after 4:15 p.m., New York City time (or after such time as yields on U.S. government securities are posted daily by the Board of Governors of the Federal Reserve System), on the third Business Day preceding the Redemption Date based upon the yield or yields for the most recent day that appear after such time on such day in the most recent statistical release published by the Board of Governors of the Federal Reserve System designated as "Selected Interest Rates (Daily)—H.15" (or any successor designation or publication) ("H.15") under the caption "U.S. government securities—Treasury constant maturities—Nominal" (or any successor caption or heading) ("H.15 TCM"). In determining the Treasury Rate, the Issuer shall select, as applicable: (1) the yield for the Treasury constant maturity on H.15 exactly equal to the period from the redemption date to the Par Call Date (the "Remaining Life"); or (2) if there is no such Treasury constant maturity on H.15 exactly equal to the Remaining Life, the two yields—one yield corresponding to the Treasury constant maturity on H.15 immediately shorter than and one yield corresponding to the Treasury constant maturity on H.15 immediately longer than the Remaining Life—and shall interpolate to the Par Call Date on a straight-line basis (using the actual number of days) using such yields and rounding the result to three decimal places; or (3) if there is no such Treasury constant maturity on H.15 shorter than or longer than the Remaining Life, the yield for the single Treasury constant maturity on H.15 closest to the Remaining Life. For purposes of this paragraph, the applicable Treasury constant maturity or maturities on H.15 shall be deemed to have a maturity date equal to the relevant number of months or years, as applicable, of such Treasury constant maturity from the Redemption Date. (2) If on the third Business Day preceding the Redemption Date H.15 TCM is no longer published, the Issuer shall calculate the Treasury Rate based on the rate per annum equal 55 to the semi-annual equivalent yield to maturity at 11:00 a.m., New York City time, on the second business day preceding such Redemption Date of the United States Treasury security maturing on, or with a maturity that is closest to, the Par Call Date, as applicable. If there is no United States Treasury security maturing on the Par Call Date but there are two or more United States Treasury securities with a maturity date equally distant from the Par Call Date, one with a maturity date preceding the Par Call Date and one with a maturity date following the Par Call Date, the Issuer shall select the United States Treasury security with a maturity date preceding the Par Call Date. If there are two or more United States Treasury securities maturing on the Par Call Date or two or more United States Treasury securities meeting the criteria of the preceding sentence, the Issuer shall select from among these two or more United States Treasury securities the United States Treasury security that is trading closest to par based upon the average of the bid and asked prices for such United States Treasury securities at 11:00 a.m., New York City time. In determining the Treasury Rate in accordance with the terms of this paragraph, the semi-annual yield to maturity of the applicable United States Treasury security shall be based upon the average of the bid and asked prices (expressed as a percentage of principal amount) at 11:00 a.m., New York City time, of such United States Treasury security, and rounded to three decimal places. Notice of any optional redemption will be given in accordance with the 2019 BATCAP Indenture (as supplemented by the supplemental indentures pursuant to which the post-2021 BATCAP Notes were issued) at least 10 days but not more than 60 days before the Redemption Date to each holder of the post- 2021 BATCAP Notes to be redeemed. Any redemption may, at the Issuer's sole discretion, be subject to the satisfaction of one or more conditions precedent. In the event of a conditional redemption, the notice of conditional redemption shall reflect and specify the conditions to the redemption. Once the notice of redemption is delivered, post-2021 BATCAP Notes called for redemption shall, subject to the satisfaction of any applicable conditions, become irrevocably due and payable on the Redemption Date. If less than all the post-2021 BATCAP Notes of a series are to be redeemed, in the case of a redemption at the Issuer's option as discussed in this section, the post-2021 BATCAP Notes to be redeemed shall be selected in accordance with applicable procedures of DTC. Upon presentation of any post-2021 BATCAP Note redeemed in part only, the Issuer will execute and upon receipt of a written direction from the Issuer, the Paying Agent will authenticate and deliver (or cause to be transferred by book-entry) to, or on, the order of the holder thereof, at the expense of the Issuer, a new post-2021 BATCAP Note of authorized denominations in principal amount equal to the unredeemed portion of the post-2021 BATCAP Note so presented. The Issuer's actions and determinations in determining the redemption price shall be conclusive and binding for all purposes, absent manifest error. Optional Redemption of the 2028 Notes, 2031 2.726% Notes, 2040 Notes, 2050 3.984% Notes, 2027 4.700% Notes, 2030 4.906% Notes, 2050 5.382% Notes, 2026 Notes, 2029 3.462% Notes and 2049 Notes (the "pre-2022 BATCAP Notes") The Issuer may redeem the pre-2022 BATCAP Notes, in whole or in part, at the Issuer's option, at any time and from time to time before the applicable Par Call Date (as defined below), at a redemption price equal to the greater of (x) 100% of the principal amount of the series of pre-2022 BATCAP Notes to be redeemed and (y) as determined by the Independent Investment Banker (as defined below), the sum of the present values of the applicable Remaining Scheduled Payments (as defined below) discounted to the date of redemption (the "Redemption Date") on a semi-annual basis (assuming a 360-day year consisting of 56 twelve 30-day months or, in the case of an incomplete month, the number of days elapsed) at the Treasury Rate (as defined below) plus, in the case of each respective series of pre-2022 BATCAP Notes as follows: 2028 Notes 30 basis points 2031 2.726% Notes 35 basis points 2040 Notes 35 basis points 2050 3.984% Notes 40 basis points 2027 4.700% Notes 50 basis points 2030 4.906% Notes 50 basis points 2050 5.282% Notes 50 basis points 2026 Notes 30 basis points 2029 3.462% Notes 30 basis points 2049 Notes 45 basis points together with, in each case, accrued and unpaid interest on the principal amount of the pre-2022 BATCAP Notes to be redeemed to, but excluding, the Redemption Date. If the Issuer elects to redeem a series of the pre-2022 BATCAP Notes on or after the applicable Par Call Date, the Issuer will pay an amount equal to 100% of the principal amount of the pre-2022 BATCAP Notes redeemed, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption. In connection with such optional redemption the following defined terms apply: • Comparable Treasury Issue means the United States Treasury security selected by the Independent Investment Banker that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the applicable pre-2022 BATCAP Notes to the relevant Par Call Date. • Comparable Treasury Price means, with respect to any Redemption Date, (A) the average of the Reference Treasury Dealer Quotations for that Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations or (B) if the Independent Investment Banker for the applicable pre-2022 BATCAP Notes obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such Quotations. • Independent Investment Banker means one of the Reference Treasury Dealers (as defined below) appointed by the Issuer to act as the "Independent Investment Banker". • Par Call Date means (i) January 25, 2028, with respect to any 2028 Notes (two months prior to the maturity date of the 2028 Notes), (ii) December 25, 2030, with respect to any 2031 2.726% Notes (three months prior to the maturity date of the 2031 2.726% Notes), (iii) March 25, 2040, with respect to any 2040 Notes (six months prior to the maturity date of the 2040 Notes), (iv) March 25, 2050, with respect to any 2050 3.984% Notes (six months prior to the maturity date of the 2050 3.984% Notes), (v) February 2, 2027 with respect to any 2027 4.700% Notes (two months prior to the maturity date of the 2027 4.700% Notes), (vi) January 2, 2030 with respect to any 2030 4.906% Notes (three months prior to the maturity date of the 2030 4.906% Notes), (vii) October 2, 2049 with respect to any 2050 5.282% Notes (six months prior to the maturity date of the 2050 5.282% Notes), (viii) July 6, 2026 with respect to any 2026 Notes (two months prior to the maturity date of the 2026 Notes), (ix) June 6, 2029 with respect to any 2029 3.462% Notes

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57 (three months prior to the maturity date of the 2029 3.462% Notes) and (x) March 6, 2049 with respect to any 2049 Notes (six months prior to the maturity date of the 2049 Notes). • Reference Treasury Dealer means, in case of the 2028 Notes, the 2031 2.726% Notes, the 2040 Notes and the 2050 3.984% Notes, each of BofA Securities, Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Wells Fargo Securities, LLC, NatWest Markets Securities Inc. and SG Americas Securities, LLC and their respective successors and two other nationally recognized investment banking firms that are Primary Treasury Dealers specified from time to time by the Issuer, in case of the 2027 4.700% Notes, the 2030 4.906% Notes and the 2050 5.282% Notes, each of Barclays Capital Inc., BofA Securities, Inc., Citigroup Global Markets Inc. and Mizuho Securities USA LLC and their respective successors and two other nationally recognized investment banking firms that are Primary Treasury Dealers specified from time to time by the Issuer, and in case of the 2026 Notes, the 2029 3.462% Notes, and the 2049 Notes, each of BofA Securities, Inc., Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. and their respective successors and two other nationally recognized investment banking firms that are Primary Treasury Dealers specified from time to time by the Issuer; provided, however, that if any of the foregoing shall cease to be a primary U.S. government securities dealer in New York City (a "Primary Treasury Dealer"), the Issuer shall substitute therefor another nationally recognized investment banking firm that is a Primary Treasury Dealer. • Reference Treasury Dealer Quotation means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day immediately preceding that Redemption Date. • Remaining Scheduled Payments means, with respect to each pre-2022 BATCAP Note to be redeemed, the remaining scheduled payments of the principal thereof and interest thereon that would be due from and including the related Redemption Date, but for such redemption, to but excluding the relevant Par Call Date; provided, however, that if that Redemption Date is not an Interest Payment Date with respect to such pre-2022 BATCAP Notes, the amount of the next succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued thereon to that Redemption Date. • Treasury Rate means, with respect to any Redemption Date, the rate per annum equal to the semi- annual equivalent yield to maturity (computed as of the third Business Day immediately preceding that Redemption Date) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for that Redemption Date. Notice of any optional redemption will be given in accordance with the 2019 BATCAP Indenture at least 10 days but not more than 30 days before the Redemption Date to each holder of the Notes to be redeemed. Any redemption may, at the Issuer's sole discretion, be subject to the satisfaction of one or more conditions precedent. In the event of a conditional redemption, the notice of conditional redemption shall reflect and specify the conditions to the redemption. Once the notice of redemption is delivered, pre- 2022 BATCAP Notes called for redemption shall, subject to the satisfaction of any applicable conditions, become irrevocably due and payable on the Redemption Date. 58 If less than all the pre-2022 BATCAP Notes of a series are to be redeemed, in the case of a redemption at the Issuer's option as discussed in this section, the pre-2022 BATCAP Notes to be redeemed shall be selected in accordance with applicable procedures of DTC. Upon presentation of any pre-2022 BATCAP Note redeemed in part only, the Issuer will execute and upon receipt of a written direction from the Issuer, the Paying Agent will authenticate and deliver (or cause to be transferred by book-entry) to, or on, the order of the holder thereof, at the expense of the Issuer, a new pre-2022 BATCAP Note of authorized denominations in principal amount equal to the unredeemed portion of the pre-2022 BATCAP Note so presented. The redemption price shall be calculated by the Independent Investment Banker and the Issuer, and the Trustee and any agent shall be entitled to rely on such calculation. Redemption for Tax Reasons Each series of Notes (including each series of BATCAP Notes) is also redeemable by the Issuer, in whole but not in part, at 100% of the principal amount of such Notes plus any accrued and unpaid interest (including any Additional Amounts) to the applicable date fixed for such redemption pursuant to the terms of the 2019 BATCAP Indenture or such series of Notes (the "Redemption Date") at the Issuer's option at any time prior to their maturity if, due to a Change in Tax Law (as defined below): (i) the Issuer or any Guarantor, in accordance with the terms of the applicable Notes or applicable Guarantee, has, or would, become obligated to pay any Additional Amounts to the Holders of the Notes of that series; (ii) in the case of any Guarantor, (A) the Parent would be unable, for reasons outside its control, to procure payment by the Issuer or any other Guarantor or (B) the procuring of such payment by the Issuer and each such other Guarantor would be subject to withholding Taxes imposed by a Relevant Taxing Jurisdiction; and (iii) such obligation cannot otherwise be avoided by such Guarantor, the Parent or the Issuer, taking reasonable measures available to it. In such case, the Issuer may redeem the applicable Notes upon not less than 30 nor more than 60 days' notice as provided in " —Notice" below, at 100% of the principal amount of such Notes plus accrued and unpaid interest to the Redemption Date (including Additional Amounts); provided that (a) no such notice of redemption shall be given earlier than 90 days prior to the earliest date on which the Issuer or such Guarantor, as the case may be, would be obligated to pay any such Additional Amounts in respect of the applicable Notes or applicable Guarantee, as applicable, then due; and (b) at the time such notice is given, such obligation to pay such Additional Amounts remains in effect. The Issuer's right to redeem the applicable Notes shall continue as long as the Issuer or any Guarantor is obligated to pay such Additional Amounts, notwithstanding that the Issuer or such Guarantor, as the case may be, shall have made payments of Additional Amounts. Prior to the giving of any such notice of redemption, the Issuer must deliver to the Trustee: (i) an officer's certificate stating that the Issuer is entitled to effect such redemption and setting forth a statement of facts showing that the conditions precedent to the right of the Issuer to so redeem have occurred; and (ii) an opinion of independent counsel or an independent accountant of recognized standing, selected by the Issuer or any Guarantor, as applicable, with respect to tax matters of the Relevant Taxing Jurisdiction to the effect that the Issuer or such Guarantor has, or would, become obligated to pay such Additional Amounts as a result of such Change in Tax Law. For the purposes hereof, "Change in Tax Law" shall mean: (i) any changes in, or amendment to, any law of a Relevant Taxing Jurisdiction (including any regulations or rulings promulgated thereunder and including, for this purpose, any treaty entered into by the Relevant Taxing Jurisdiction) or any amendment to or change in the application or official interpretation (including judicial or administrative interpretation) of such law, which change or amendment becomes effective or, in the case of an official interpretation, is announced, on or after the first date of issuance of Notes of such series; or (ii) if the Issuer or any Guarantor consolidates, merges, amalgamates or combines with, or transfers or leases its 59 assets substantially as an entirety to, any person that is incorporated or tax resident under the laws of any jurisdiction other than a Relevant Taxing Jurisdiction (a "successor") and as a consequence thereof such person becomes the successor obligor to the Issuer or such Guarantor in respect of Additional Amounts that may become payable (in which case, for purposes of this redemption provision, all references to the Issuer or such Guarantor shall be deemed to be and include references to such person), any change in, or amendment to, any law of the jurisdiction of organization or tax residence of such successor, or the jurisdiction through which payments will be made by the successor, or any political subdivision or taxing authority thereof or thereon for purposes of taxation (including any regulations or rulings promulgated thereunder and including, for this purpose, any treaty entered into by such jurisdiction) or any amendment to or change in the application or official interpretation (including judicial or administrative interpretation) of such law, which change or amendment becomes effective or, in the case of an official interpretation, is announced, on or after the date of such consolidation, merger, amalgamation, combination or other transaction. General On or before any Redemption Date (as defined above), the Issuer shall deposit with the Paying Agent money sufficient to pay the redemption price of and accrued and unpaid interest on the BATCAP Notes to be redeemed on such date. On and after any Redemption Date, interest will cease to accrue on the BATCAP Notes or any portion thereof called for redemption. Maturity Unless previously purchased or redeemed by the Issuer, and cancelled, the principal amount of each respective series of BATCAP Notes shall mature on: Series of BATCAP Notes Maturity date 2033 4.625% Notes March 22, 2033 2032 5.350% Notes August 15, 2032 2035 Notes August 15, 2035 2055 Notes August 15, 2055 2031 5.834% Notes February 20, 2031 2034 Notes February 20, 2034 2030 6.343% Notes August 2, 2030 2033 6.421% Notes August 2, 2033 2043 Notes August 2, 2043 2053 Notes August 2, 2053 2032 7.750% Notes October 19, 2032 2032 4.742% Notes March 16, 2032 2052 Notes March 16, 2052 2028 Notes March 25, 2028 2031 2.726% Notes March 25, 2031 2040 Notes September 25, 2040 2050 3.984% Notes September 25, 2050 2027 4.700% Notes April 2, 2027 2030 4.906% Notes April 2, 2030 2050 5.282% Notes April 2, 2050 2026 Notes September 6, 2026 60 2029 3.462% Notes September 6, 2029 2049 Notes September 6, 2049 in an amount equal, in each case, to their principal amount, with accrued and unpaid interest to, but excluding, such date. Covenants of the Issuer and the Guarantors Reacquisition There is no restriction on the ability of the Issuer to purchase or repurchase BATCAP Notes, provided, that any BATCAP Notes so repurchased shall be cancelled and not reissued. Sinking Fund There is no provision for a sinking fund for any of the Notes. Certain Definitions Set forth below is a summary of certain of the defined terms used in the BATCAP Notes, the 2019 BATCAP Indenture and the applicable supplemental indentures. You should refer to the BATCAP Notes, the 2019 BATCAP Indenture and applicable supplemental indentures for the full definition of all defined terms as well as any other terms used herein for which no definition is provided. "Dollar" or "$" means United States Dollars, or such other money of the United States that at the time of payment is legal tender for payment of public and private debts. "EMTN Programme" means the Euro Medium Term Note Programme to which BATCAP, BATIF and BATNF are parties as the issuers under the programme and notes issued thereunder are guaranteed by the Parent, each of the issuers thereunder (except when it is the relevant issuer) and RAI, as amended from time to time. "Original Issue Discount Note" means any Note that is issued with "original issue discount" within the meaning of Section 1273(a) of the Code and Treasury Regulations promulgated thereunder and any other Note designated by the Company as issued with original issue discount for United States federal income tax purposes. "Person" means any individual, corporation, partnership, joint venture, association, limited liability company, joint stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. "Quoted Borrowing" means any indebtedness which: (i) is represented by notes, debentures or other securities issued otherwise than to constitute or represent advances made by banks and/or other lending institutions; (ii) is denominated, or confers any right to payment of principal and/or interest, in or by reference to any currency other than the currency of the country in which the issuer of the indebtedness has its principal place of business or is denominated, or confers any right to payment of principal and/or interest, in or by reference to the currency of such country but is sold or subscribed by or on behalf of, or by agreement with, the issuer of such indebtedness as to over 20% outside such country; and (iii) at its date of issue is, or is intended by the issuer of such indebtedness to become, quoted, listed, traded or dealt in on any stock exchange or other organized and regulated securities market in any part of the world.

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61 Covenants of the Issuer and the Guarantors Negative Pledge The 2019 BATCAP Indenture provides that so long as any of the Notes (including any of the BATCAP Notes) remains outstanding, neither the Issuer nor any Guarantor will secure or allow to be secured any Quoted Borrowing issued by the Issuer or any Guarantor or any payment under any guarantee by any of them of any such Quoted Borrowing by any mortgage, charge, pledge or lien (other than arising by operation of law) upon any of its undertaking or assets, whether present or future, unless at the same time the same mortgage, charge, pledge or lien is extended, or security which is not materially less beneficial to the holders of the Notes than the security given as aforesaid or which shall be approved by consent of the holders of not less than 75% in aggregate principal amount of the Notes at the time outstanding is extended or created (as the case may be), to secure equally and ratably the principal of, and interest on, and all other payments (if any) in respect of the Notes. Limitation on Mergers, Consolidations, Amalgamations and Combinations Under the 2019 BATCAP Indenture, so long as any of the Notes (including any of the BATCAP Notes) remains outstanding thereunder, neither the Issuer nor any Guarantor may consolidate with or merge into any other person or sell, convey, transfer or lease its properties and assets as an entirety or substantially as an entirety to any person (other than any sale or conveyance by way of a lease in the ordinary course of business), unless: (i) in the case of the Issuer, any successor person assumes the Issuer's obligations on the Notes (including the BATCAP Notes) and under the 2019 BATCAP Indenture and, in the case of any Guarantor, any successor person assumes such Guarantor's obligations on the Guarantee and under the 2019 BATCAP Indenture; (ii) immediately after giving effect to such transaction, no Event of Default, and no event which, after notice or lapse of time or both, would become an Event of Default, shall have occurred and be continuing; (iii) such successor person is organized under the laws of the United States or any State thereof, the United Kingdom, The Netherlands or any other country that is a member of the Organization for Economic Cooperation and Development as of the date of such succession; (iv) such successor person agrees to pay any Additional Amounts with respect to any withholding or deduction of Taxes or any payment on the Notes (including the BATCAP Notes) or Guarantees (as applicable) imposed by the jurisdiction (other than the United States, unless otherwise required by clause (i) of this paragraph) in which such successor person is incorporated or otherwise a resident for tax purposes subject to the exceptions described under "—Additional Amounts" (for the avoidance of doubt, solely to the extent such successor person is the Issuer, changes will be made to the 2019 BATCAP Indenture as are necessary to obligate the Issuer to pay such Additional Amount); and (v) if as a result of such consolidation or merger or such sale, conveyance, transfer or lease, properties or assets of the Issuer or any Guarantor would become subject to a mortgage, pledge, security interest, lien or similar encumbrance to secure payment of any indebtedness for borrowed money of the Issuer or any Guarantor which would not be permitted by the Notes of a series or under the 2019 BATCAP Indenture, the Issuer or any Guarantor or such successor person, as the case may be, shall take such steps as shall be necessary to effectively secure the Notes of such series equally and ratably with (or prior to) all indebtedness for borrowed money secured thereby. The limitation on mergers, consolidations, amalgamations and combinations described in this section "— Limitation on Mergers, Consolidations, Amalgamations and Combinations" shall not apply to any consolidation, merger, amalgamation or combination in which the Issuer or any Guarantor is the surviving corporation except that, in such case, the provisions of (ii) and (v) above shall apply such that: (x) immediately after giving effect to such transaction, no Event of Default, and no event which, after notice or lapse of time or both, would become an Event of Default, shall have occurred and be continuing; and (y) if as a result of such consolidation or merger or such sale, conveyance, transfer or lease, properties or 62 assets of the Issuer or any Guarantor would become subject to a mortgage, pledge, security interest, lien or similar encumbrance to secure payment of any indebtedness for borrowed money of the Issuer or any Guarantor which would not be permitted by the Notes or under the 2019 BATCAP Indenture, the Issuer or any Guarantor, as the case may be, shall take such steps as shall be necessary to effectively secure the Notes equally and ratably with (or prior to) all indebtedness for borrowed money secured thereby. The 2019 BATCAP Indenture does not contain covenants or other provisions to afford protection to holders of the Notes in the event of a highly leveraged transaction or a change in control of the Issuer or any Guarantor except as provided above. Upon certain mergers or consolidations involving the Issuer or any Guarantor, or upon certain sales or conveyances of all or substantially all of the assets of the Issuer or any Guarantor, the obligations of the Issuer or such Guarantor, under the applicable Notes or the applicable Guarantee, shall be assumed by the person formed by such merger or consolidation or which shall have acquired such assets and upon such assumptions such person shall succeed to and be substituted for the Issuer or such Guarantor, as the case may be, and then the Issuer or such Guarantor will (except in the case of a lease) be relieved of all obligations and covenants under the 2019 BATCAP Indenture, the Notes and the applicable Guarantee, as the case may be. The terms "Issuer" and "Guarantor", as used in the Notes and the 2019 BATCAP Indenture, also refer to any such successors or assigns so substituted. Although there is a limited body of case law interpreting the phrase "entirety or substantially as an entirety", there is no precise established definition of the phrase under applicable law. Accordingly, in certain circumstances, there may be a degree of uncertainty as to whether a particular transaction would involve a disposition of "entirety or substantially as an entirety" of the Issuer's assets and its subsidiaries taken as a whole. Events of Default Each of the following events shall be an "Event of Default" with respect to any series of the Notes (including any series of the BATCAP Notes): (i) Non-Payment: default is made in the payment of: (a) any installment of interest (excluding Additional Amounts) upon any applicable Note as and when the same shall become due and payable, and there is a continuance of such default for a period of 14 days or more; (b) applicable Additional Amounts as and when the same shall become due and payable, and there is a continuance of such default for a period of 14 days; or (c) all or any part of the principal or premium, if any, of any applicable Note as and when the same shall become due and payable either at maturity, upon any redemption, by declaration or otherwise, and there is a continuance of such default for a period of three days; (ii) Breach of Other Obligations: the Issuer or any Guarantor does not perform or comply with any one or more of its other obligations under the applicable Notes or the 2019 BATCAP Indenture (other than those described in paragraph (i) above) which is not remedied within 30 days (unless a longer period is specified in the 2019 BATCAP Indenture) after written notice of such default shall have been given to the Issuer by the Trustee or to the Issuer and the Trustee by the holders of at least 25% of the outstanding principal amount of the Notes; (iii) Cross-Default: (a) any other present or future indebtedness for borrowed money of the Issuer or any Guarantor, other than the Notes issued by the Issuer, becomes due and 63 payable prior to its stated maturity by reason of any default or event of default in respect thereof by the Issuer or any Guarantor and remains unpaid; or (b) any such indebtedness for borrowed money is not paid when due or, as the case may be, within any applicable grace period; or (c) the Issuer or any Guarantor fails to pay when due and called upon (after the expiry of any applicable grace period) any amount payable by it under any present or future guarantee for, or indemnity in respect of, any indebtedness for borrowed money and which remains unpaid; provided that (x) payment of the indebtedness for borrowed money is not being contested in good faith and in accordance with legal advice or (y) the aggregate amount of the indebtedness for borrowed money, guarantees and indemnities in respect of which one or more of the events mentioned above in clauses (a), (b) and (c) of this paragraph (iii) has or have occurred and is or are continuing, equals or exceeds £750 million or its equivalent in any other currency of the indebtedness for borrowed money or, if greater, 1.25% of the Total Equity of the Parent, as set out in the "Total Equity" line item in the most recent consolidated group balance sheet of the Parent and its subsidiaries in the Parent's most recent annual report; (iv) Cessation of Guarantees: any Guarantee ceases to be in full force and effect (except as contemplated by the terms of the 2019 BATCAP Indenture, including as described above under "—Guarantees—Release") or any Guarantor denies or disaffirms in writing its obligations under the 2019 BATCAP Indenture or Guarantee; (v) Enforcement Proceedings: a distress or execution or other legal process is levied or enforced against or an encumbrancer takes possession of or a receiver, administrative receiver or other similar officer is appointed of the whole or a part of the assets of the Issuer or any Guarantor which is substantial in relation to the BAT Group taken as a whole and is not discharged, stayed, removed or paid out within 45 days after such execution or appointment; (vi) Security Enforced: any mortgage, charge, pledge, lien or other encumbrance, present or future, created or assumed by the Issuer or any Guarantor becomes enforceable against all or substantially all of the assets of the Issuer or any Guarantor, and any step is taken to enforce it (including the taking of possession or the appointment of a receiver, administrative receiver, manager or other similar person) and is not discharged within 45 days; (vii) Insolvency: the Issuer or any Guarantor is insolvent or bankrupt or unable to pay its debts (in respect of companies incorporated in England and Wales, within the meaning of Section 123(1)(b) or (e) or Section 123(2) of the UK Insolvency Act 1986), stops, suspends or threatens to stop or suspend payment of all or a material part of its debts, proposes or makes a general assignment or an arrangement or composition (otherwise than for the purposes of reconstruction, amalgamation, reorganization, merger or consolidation or other similar arrangement) with or for the benefit of its creditors in respect of any of such debts or a moratorium is agreed or declared in respect of or affecting all or a material part of the debts of the Issuer; (viii) Winding-up: an order is made or an effective resolution passed for the winding-up or dissolution or administration of the Issuer or any Guarantor, or the Issuer or any Guarantor shall apply or petition for a winding-up or administration order in respect of itself or ceases or threatens to cease to carry on all or substantially all of its business or operations, in each case except for the purpose of and followed by a reconstruction, amalgamation, reorganization, merger or consolidation or other similar arrangement; or 64 (ix) Analogous Events: any event occurs that under the laws of any relevant jurisdiction has an analogous effect to any of the events referred to in any of the foregoing paragraphs (vii) and (viii). The 2019 BATCAP Indenture provides that if an Event of Default occurs and is continuing with respect to the Notes of any series then outstanding, then and in each and every such case (other than certain Events of Default specified in paragraphs (vii), (viii) and (ix) above with respect to the Issuer or any Guarantor), unless the principal of all the Notes of such series shall have already become due and payable, the holders of not less than 25% in aggregate principal amount of the Notes of such affected series then outstanding, by notice in writing to the Issuer, each Guarantor and the Trustee, may declare the entire principal amount of all Notes of such series and interest accrued and unpaid thereon, if any, to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable, without any further declaration or other act on the part of any holder. If certain Events of Default described in paragraph (vii), (viii) or (ix) above occur with respect to the Issuer or any Guarantor and are continuing with respect to a series of Notes, the principal amount of and accrued and unpaid interest on all the Notes of such series issued pursuant to the 2019 BATCAP Indenture shall become immediately due and payable, without any declaration or other act on the part of the Trustee or any holder. Under certain circumstances, the holders of a majority in aggregate principal amount of the then outstanding Notes of such series, by written notice to the Issuer, each Guarantor and the Trustee, may waive defaults and rescind and annul declarations of acceleration and its consequences, but no such waiver or rescission and annulment shall extend to or shall affect any subsequent default or shall impart any right consequent thereon. The holders of a majority in aggregate principal amount of any series of Notes then outstanding will have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee with respect to the Notes of such series, subject to certain limitations to be specified in the 2019 BATCAP Indenture, including providing to the Trustee indemnity satisfactory to it. An Event of Default with respect to any series of Notes would not necessarily constitute an event of default with respect to the other series of Notes. The 2019 BATCAP Indenture provides that notwithstanding the foregoing provisions described under "—Events of Default", if the principal of, premium (if any) or interest on or Additional Amounts with respect to any Note is payable in a currency or currencies other than Dollars and such currency or currencies are not available to the Issuer or any Guarantor for making payment thereof due to the imposition of exchange controls or other circumstances beyond the control of the Issuer or such Guarantor (a "Conversion Event"), the Issuer and the Guarantor will be entitled to satisfy its obligations to Holders of the Notes by making such payment in Dollars in an amount equal to the Dollar equivalent of the amount payable in such other currency, as determined by the Issuer or the Guarantor making such payment, as the case may be, based on the Exchange Rate on the date of such payment, or, if such rate is not then available, on the basis of the most recently available Exchange Rate. Notwithstanding the foregoing provisions, any payment made under such circumstances in Dollars where the required payment is in a currency other than Dollars will not constitute an Event of Default under the 2019 BATCAP Indenture. Promptly after the occurrence of a Conversion Event, the Issuer or the relevant Guarantor shall give written notice thereof to the Trustee and to the Paying Agent; and the Trustee, promptly after receipt of such notice, shall give notice thereof in the manner provided in the 2019 BATCAP Indenture to the Holders of the relevant series of Notes. Promptly after the making of any payment in Dollars as a result of a Conversion Event, the Issuer or the Guarantor making such payment, as the case may be, shall give

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65 notice in the manner provided in the 2019 BATCAP Indenture to the Holders, setting forth the applicable Exchange Rate and describing the calculation of such payments. No holder of the Notes of a series will have any right to institute any action or proceeding at law or in equity or in bankruptcy or otherwise upon or under or with respect to the 2019 BATCAP Indenture, or for the appointment of a trustee, receiver, liquidator, custodian or other similar official or for any other remedy under the 2019 BATCAP Indenture (except suits for the enforcement of payment of overdue principal or interest) unless (1) the holder of a Note gives to the Trustee written notice of a continuing Event of Default, (2) the holders of at least 25% in principal amount of the outstanding Notes of such series have made a written request to the Trustee to institute such proceeding as Trustee, (3) the holder or holders of Notes offer, and if requested, provide to the Trustee indemnity satisfactory to the Trustee against any loss, liability or expense, (4) the Trustee does not comply with the request within 60 days after receipt of the request and the offer of indemnity and (5) during such 60-day period the holders of a majority in aggregate principal amount of the outstanding Notes of such series have not given the Trustee a direction inconsistent with the request. The holder of a Note may not use the 2019 BATCAP Indenture to prejudice the rights of another holder of a Note or to obtain a preference or priority over another holder of a Note (it being understood that the Trustee does not have an affirmative duty to ascertain whether or not such actions or forbearances are unduly prejudicial to such holders). Satisfaction and Discharge The 2019 BATCAP Indenture provides that BAT may, subject to satisfying certain conditions, discharge certain obligations to the holders of Notes of any series of Notes that have not already been delivered to the Trustee for cancellation and that either have become due and payable or will become due and payable within one year (or scheduled for redemption within one year) by depositing with the Trustee or Paying Agent, in trust, funds in an amount sufficient to pay the entire indebtedness on such series of Notes in respect of principal and premium, if any, and interest, if any, to the date of such deposit (if such Notes have become due and payable) or to the maturity thereof or redemption date, as the case may be, along with an officer's certificate and an opinion of counsel stating that all conditions precedent relating to the satisfaction and discharge of the 2019 BATCAP Indenture have been complied with. Legal Defeasance and Covenant Defeasance The 2019 BATCAP Indenture provides that the Issuer will have the option either (a) to be deemed (together with each Guarantor) to have paid and discharged the entire indebtedness represented by, and obligations under, a series of Notes and the applicable Guarantees and to have satisfied all the obligations under the 2019 BATCAP Indenture relating to the series of Notes (except for certain obligations, including those relating to the defeasance trust and obligations to register the transfer or exchange of Notes, to replace mutilated, destroyed, lost or stolen Notes and to maintain paying agencies) on the 91st day after the applicable conditions described below have been satisfied or (b) to cease (together with each Guarantor) to be under any obligation to comply with the covenants described above under " —Covenants of the Issuer and the Guarantors—Negative Pledge", "—Covenants of the Issuer and the Guarantors— Limitation on Mergers, Consolidations, Amalgamations and Combinations", and non-compliance with such covenants and the occurrence of all events described above under "—Events of Default" will not give rise to any Event of Default under the 2019 BATCAP Indenture, at any time after the applicable conditions described below have been satisfied. In order to exercise either defeasance option, the Issuer must (i) deposit with the Trustee, irrevocably in money or Government Obligations (as defined in the 2019 BATCAP Indenture), funds sufficient in the opinion of a certified public accounting firm of national reputation for the payment of principal of and interest on the applicable outstanding Notes of any series to and including the Redemption Date 66 irrevocably designated by the Issuer on or prior to the date of deposit of such money or Government Obligations, and must (ii) comply with certain other conditions, including delivering to the Trustee an opinion of U.S. counsel to the effect that beneficial owners of the applicable Notes will not recognize income, gain or loss for United States Federal income tax purposes as a result of the exercise of such option and will be subject to United States Federal income tax on the same amount and in the same manner and at the same time as would have been the case if such option had not been exercised and, in the case of clause (a) in the previous paragraph, which opinion must state that such opinion is based on a ruling received from or published by the United States Internal Revenue Service or on a change in the applicable U.S. Federal income tax laws after the date of issuance of the relevant Notes. Modification and Waiver Without Consent of Noteholders The 2019 BATCAP Indenture contains provisions permitting the Issuer, the Guarantors and the Trustee, without the consent of the holders of any of the applicable Notes at any time outstanding, from time to time and at any time, to enter into a supplemental indenture amending or supplementing such 2019 BATCAP Indenture, the Notes or the Guarantees in order to: • convey, transfer, assign, mortgage or pledge to the holders of the applicable Notes or any person acting on their behalf as security for the applicable Notes any property or assets; • evidence the succession of another person to the Issuer or any Guarantor, as the case may be, or successive successions, and the assumption by the successor person(s) of the covenants, agreements and obligations of the Issuer or any Guarantor, as the case may be, pursuant to the 2019 BATCAP Indenture; • evidence and provide for the acceptance of appointment of a successor or successors to the Trustee and/or the Paying Agent, Transfer Agent, Calculation Agent and Registrar, as applicable; • add to the covenants of, or the restrictions, conditions or provisions applicable to, the Issuer and any Guarantor, as the case may be, such further covenants, restrictions, conditions or provisions as the Issuer and any Guarantor, as the case may be, shall consider to be for the protection of the holders of the applicable Notes issued pursuant to the 2019 BATCAP Indenture, including to eliminate one or both prongs of the release provision under "—Guarantees—Release", and to make the occurrence, or the occurrence and continuance, of a default in any such additional covenants, restrictions, conditions or provisions an Event of Default under the 2019 BATCAP Indenture permitting the enforcement of all or any of the several remedies provided in the 2019 BATCAP Indenture; provided that, in respect of any such additional covenant, restriction, condition or provision, such supplemental indenture may provide for a particular period of grace after default (which may be shorter or longer than that allowed in the case of other defaults) or may limit the remedies available to the Trustee upon such an Event of Default; • modify the restrictions on, and procedures for, resale and other transfers of the applicable Notes pursuant to law, regulation or practice relating to the resale or transfer of restricted securities generally; • cure any ambiguity or to correct or supplement any provision contained in the 2019 BATCAP Indenture, the Notes, or the Guarantees which may be defective or inconsistent with any other provision contained therein or to make such other provision in regard to matters or questions arising under the 2019 BATCAP Indenture, the Notes or the Guarantees as the Issuer, any 67 Guarantor or the Trustee may deem necessary or desirable and which will not, in the opinion of the Issuer, adversely affect the interests of the holders of the applicable Notes in any material respect; • issue an unlimited aggregate principal amount of Notes under the 2019 BATCAP Indenture or to "reopen" the applicable series of Notes and create and issue additional notes having substantially identical terms and conditions as the applicable Notes (or in all respects except as to issue price, denomination, rate of interest, Maturity Date and the date from which interest, if any, shall accrue, and except as may otherwise be provided in or pursuant to such officer's certificate or supplemental indenture relating thereto) so that the additional notes are consolidated and form a single series with the outstanding applicable Notes; and • evidence the addition of any new Guarantor of the Notes and the 2019 BATCAP Indenture, or the release of any Guarantor from its obligations with respect to the Notes and the 2019 BATCAP Indenture, pursuant to the terms of the 2019 BATCAP Indenture. With Consent of Noteholders The 2019 BATCAP Indenture contains provisions permitting the Issuer, each Guarantor and the Trustee, with the consent of the holders of not less than a majority in aggregate principal amount of all series of the Notes affected by such supplemental indenture (voting as one class) at the time outstanding under the 2019 BATCAP Indenture (including consents obtained in connection with a tender offer or exchange offer for the applicable Notes), from time to time and at any time, to enter into a supplemental indenture for the purpose of amending, waiving or otherwise modifying the provisions of the 2019 BATCAP Indenture, the Notes and the Guarantees, or adding any provisions to or changing in any manner or eliminating any of the provisions of the applicable Notes or of modifying in any manner the rights of the holders of the applicable Notes; provided, that no such supplemental indenture may, without the consent of the holder of each of the Notes so affected: • change the stated maturity of the applicable Note of, or the date for payment of any principal of, or installment of interest on, any applicable Note, or reduce the amount of principal of an Original Issue Discount Note that would be due and payable upon a declaration of acceleration of the maturity thereof pursuant to the provisions of the 2019 BATCAP Indenture; or • reduce the principal amount of or the rate or amount of interest on any applicable Note or Additional Amounts payable with respect thereto or reduce the amount payable thereon in the event of redemption or default or change the method for determining the interest rate thereon; or • change the currency of payment of principal of or interest on any applicable Note or Additional Amounts payable with respect thereto; or change the obligation of the Issuer or any Guarantor, as the case may be, to pay Additional Amounts (except as otherwise permitted by such applicable Note); or • impair the right to institute suit for the enforcement of any such payment on or with respect to any applicable Note; or • reduce the percentage of the aggregate principal amount of the applicable Notes outstanding the consent of whose holders is required for any such supplemental indenture; or • reduce the aggregate principal amount of any applicable Note outstanding necessary to modify or amend the 2019 BATCAP Indenture or any such Note or to waive any future compliance or past 68 default or reduce the quorum requirements or the percentage of aggregate principal amount of any applicable Notes outstanding required for the adoption of any action at any meeting of holders of such Notes or to reduce the percentage of the aggregate principal amount of such Notes outstanding necessary to rescind or annul any declaration of the principal of, or all accrued and unpaid interest on, any Note to be due and payable, provided that no consent of any holder of any applicable Note shall be necessary to permit the Trustee, the Issuer and each Guarantor to execute supplemental indentures as described under "—Without Consent of Noteholders" above. Any modifications, amendments or waivers to the 2019 BATCAP Indenture or to the conditions of the applicable Notes will be conclusive and binding on all holders of the applicable Notes, whether or not they have consented to such action or were present at the meeting at which such action was taken, and on all future holders of the applicable Notes, whether or not notation of such modifications, amendments or waivers is made upon such Notes. Any instrument given by or on behalf of any holder of such a Note in connection with any consent to any such modification, amendment or waiver will be irrevocable once given and will be conclusive and binding on all subsequent registered holders of such Note. Prescription Under New York's statute of limitations, any legal action upon the Notes in respect of interest or principal must be commenced within six years after the payment thereof is due. Notice Notices to holders of Notes will be given by first-class mail postage prepaid to the last addresses of such holders as they appear in the Notes register; provided, no such mailing will be required so long as any Global Notes representing the Notes are held in their entirety on behalf of the Depositary or a clearing system, or any of its participants, as there may be substituted for the mailing of notice to holders of Notes described above the delivery of the relevant. Such notices will be deemed to have been given on the date of such mailing; notices to the Depositary or a clearing system, and (if applicable) its participants, for communication by them to the entitled accountholders. Any such notice shall be deemed to have been given on the day on which the said notice was given to the Depositary or a clearing system, and (if applicable) its participants. Listing The BATCAP Notes are listed on the New York Stock Exchange. Consent to Service Each of the non-U.S. Guarantors has initially designated BATCAP as its authorized agent for service of process in any legal suit, action or proceeding arising out of or relating to the performance of its obligations under the 2019 BATCAP Indenture, the supplemental indentures and the Notes brought in any state or federal court in the Borough of Manhattan, the City of New York, and the Guarantors will irrevocably submit (but for these purposes only) to the non-exclusive jurisdiction of any such court in any such suit, action or proceeding.

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69 Governing Law The 2019 BATCAP Indenture, the Notes and the Guarantees are, and any applicable supplemental indentures shall be, governed by and construed in accordance with the laws of the State of New York, without regard to principles of conflicts of laws thereof. Regarding the Trustee and Agents Citibank, N.A. is the trustee under the 2019 BATCAP Indenture. Citibank, N.A. is appointed by the Issuer to act as registrar, transfer agent, calculation agent and initial paying agent for the Notes. The address of Citibank, N.A., as paying agent, is Citibank, N.A., Agency & Trust, 388 Greenwich Street, New York, NY 10013. From time to time, Citibank, N.A. and its respective affiliates perform various other services for the BAT Group and its affiliates (including acting as a lender under one or more of the BAT Group's lending facilities from time to time). The 2019 BATCAP Indenture contains limitations on the rights of the trustee, if it becomes a creditor of Issuer or any Guarantor, to obtain payment of claims in some cases, or to realize on property received in respect of any of these claims as security or otherwise. The Trustee is permitted to engage in other transactions. However, if the Trustee acquires any conflicting interest (as defined in the TIA), it must either eliminate its conflict within 90 days or resign. The 2019 BATCAP Indenture provides that except during the continuance of an Event of Default, the Trustee will perform only such duties as are specifically set forth in such 2019 BATCAP Indenture. During the continuance of an Event of Default of which the Trustee has received written notice, the Trustee will exercise such of the rights and powers vested in it under the 2019 BATCAP Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of such person's own affairs. E. Description of the Notes Issued Under the 2017 BATCAP Indenture The following is a summary of the material provisions of the 2017 BATCAP Indenture (as described below) and the Notes. Any capitalized term used herein but not defined shall have the meaning assigned to such term in the 2017 BATCAP Indenture or under "—Certain Definitions". The following summary does not purport to be complete and is subject to, and is qualified in its entirety by reference to, all of the provisions of the 2017 BATCAP Indenture and those terms made a part of the 2017 BATCAP Indenture by reference to the TIA. GENERAL The 3.557% Notes due 2027 (the "3.557% Notes"), the 4.390% Notes due 2037 (the "4.390% Notes"), the 4.540% Notes due 2047 (the "4.540% Notes" and, together with the 3.557% Notes and the 4.390% Notes, the "Notes") were issued by B.A.T Capital Corporation ("BATCAP" or the "Issuer"). In this "Description of the Notes Issued Under the 2017 BATCAP Indenture", we refer to each series of the Notes as a "series" of Notes. The 3.557% Notes will mature on August 15, 2027. The 4.390% Notes will mature on August 15, 2037. The 4.540% Notes will mature on August 15, 2047. The Notes were issued in registered form and treated as three separate series of debt securities under an indenture dated as of August 15, 2017 (as supplemented by the supplemental indenture no. 1, dated as of 70 September 28, 2018, and as further amended or supplemented from time to time, the "2017 BATCAP Indenture"). The 2017 BATCAP Indenture is by and among BATCAP, as Issuer, British American Tobacco p.l.c. ("BAT" or the "Parent Guarantor"), B.A.T. International Finance p.l.c. ("BATIF"), British American Tobacco Holdings (The Netherlands) B.V. ("BATHTN"), B.A.T. Netherlands Finance B.V. ("BATNF" and, together with BATHTN, the "Dutch Guarantors"), and, unless its guarantee is released in accordance with the 2017 BATCAP Indenture, Reynolds American Inc. ("RAI"), each as a guarantor, Wilmington Trust, National Association, as trustee (the "Trustee"), and Citibank, N.A., London Branch as paying agent, registrar, transfer agent and calculation agent (in such capacity, "Paying Agent", "Registrar", "Transfer Agent" or "Calculation Agent", respectively). Citibank, N.A., New York Branch replaced Citibank, N.A., London Branch as paying agent, registrar, transfer agent and calculation agent on October 16, 2018. Each entity that provides a guarantee in respect of the Notes is referred to herein as a "Guarantor". In this "Description of the Notes Issued Under the 2017 BATCAP Indenture", the terms "holder", "Noteholder" and other similar terms refer to a "registered holder" of Notes, and not to a beneficial owner of a book- entry interest in any Notes. PRINCIPAL, MATURITY AND INTEREST The obligations of the Issuer under the Notes and 2017 BATCAP Indenture are fully and unconditionally guaranteed on a senior and unsecured basis by each of the Parent Guarantor, the Dutch Guarantors, BATIF and RAI. The Notes were issued in the following aggregate principal amounts, with outstanding aggregate principal amounts as of December 31, 2025 and maturity dates as follows: 3 Series of Notes Initial aggregate principal amount Outstanding aggregate principal amount Maturity date 3.557% Notes $3,500,000,000 $2,273,000,000 August 15, 2027 4.390% Notes $2,500,000,000 $2,500,000,000 August 15, 2037 4.540% Notes $2,500,000,000 $2,113,807,000 August 15, 2047 Interest The Notes bear interest per annum and have maturity dates as follows: Series of Notes Interest rate per annum Maturity date 3.557% Notes 3.557% August 15, 2027 4.390% Notes 4.390% August 15, 2037 4.540% Notes 4.540% August 15, 2047 The 3.557% Notes, the 4.390% Notes and the 4.540% Notes bear interest from the most recent interest payment date to which interest has been paid or provided, payable semi-annually in arrear on February 15 and August 15 of each year (each, an "Interest Payment Date") until their respective maturity date, unless 71 previously purchased or redeemed by BATCAP, to the person in whose name any, 3.557% Note, 4.390% Note or 4.540% Note, as applicable, is registered at the close of business on the 15th calendar day preceding each Interest Payment Date, whether or not such day is a Business Day (each, a "Record Date") notwithstanding any transfer or exchange of such Notes subsequent to the Record Date and prior to such Interest Payment Date, except that, if and to the extent BATCAP shall default in the payment of the interest due on such Interest Payment Date, and the applicable grace period shall have expired, such defaulted interest may at the option of BATCAP be paid to the persons in whose names the outstanding Notes are registered at the close of business on a subsequent Record Date (which shall not be less than five Business Days prior to the date of payment of such defaulted interest) established by notice sent by or on behalf of the Issuer to the holders (which term means registered holders) of the 3.557% Notes, 4.390% Notes or 4.540% Notes, as applicable, not less than 15 days preceding such subsequent Record Date. Interest is computed on the basis of a 360-day year consisting of twelve 30-day months, or in the case of an incomplete month, the number of days elapsed. If the date on which any interest payment or principal payment is to be made is not a Business Day, such payment will be made on the next day which is a Business Day, without any further interest or other amounts being paid or payable in connection therewith. A "Business Day" refers to any day which is not, in London or New York City, or any other place of payment, a Saturday, Sunday, legal holiday or a day on which banking institutions are authorized or obligated by law or regulation to close. FORM AND DENOMINATION The Notes were issued in fully registered form and only in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. The Notes were issued as Global Notes. FURTHER ISSUES The aggregate principal amount of Notes issuable under the 2017 BATCAP Indenture is unlimited. The Issuer may, from time to time, without notice to or the consent of the holders of the Notes, "reopen" any series of the Notes and create and issue additional notes having identical terms and conditions as the 3.557% Notes, the 4.390% Notes and the 4.540% Notes, as the case may be (or in all respects except for the issue date, issue price, the payment of interest accruing prior to the issue date of such additional notes and/or the first payment of interest following the issue date of such additional notes) so that the additional notes are consolidated and form a single series of Notes with the Notes, as the case may be (a "Further Issue"), provided that if the additional notes are not fungible with the Notes for United States federal income tax purposes, the additional notes will have separate CUSIPs, ISINs, or other identifying numbers. STATUS OF THE NOTES AND GUARANTEES The Notes are unsecured and unsubordinated obligations of the Issuer and rank pari passu in right of payment among themselves and with all other direct, unsecured and unsubordinated obligations of the Issuer (except those obligations preferred by statute or operation of law). Each Guarantor fully and unconditionally guaranteed, on a senior, unsecured basis, the due and punctual payment (and not collectability) of the principal of and interest on the Notes (and the payment of additional amounts described under " —Payment of Additional Amounts" below) and other obligations under the 2017 BATCAP Indenture when and as the same shall become due and payable, whether at stated maturity, by declaration of acceleration, call for redemption or otherwise. Each Guarantee is an unsecured and unsubordinated obligation of the respective Guarantor and ranks pari passu in right of payment with all other direct, unsecured and unsubordinated obligations of such Guarantor (except those obligations preferred by statute or operation of law). The Issuer and each Guarantor are subject to a negative pledge 72 with respect to certain types of indebtedness, which are discussed in " —Covenants of the Issuer and the Guarantors—Negative Pledge" below. GUARANTEES Release The 2017 BATCAP Indenture provides that, without the consent of the Trustee or the Noteholders, a Guarantor that is a subsidiary of the Parent Guarantor (a "Subsidiary Guarantor"), other than BATIF and the Dutch Guarantors, will automatically and unconditionally be released from all obligations under its Guarantee, and such Guarantee shall thereupon terminate and be discharged and of no further force or effect, in the event that (1) its guarantee of all then outstanding notes issued under the EMTN Programme is released or (2) at substantially the same time its Guarantee of the Notes is terminated, the Subsidiary Guarantor is released from all obligations in respect of indebtedness for borrowed money for which such Subsidiary Guarantor is an obligor (as a guarantor or borrower). For purposes of this paragraph, the amount of a Subsidiary Guarantor's indebtedness for borrowed money shall not include (A) the Notes issued pursuant to the 2017 BATCAP Indenture, (B) any other debt the terms of which permit the termination of such Subsidiary Guarantor's guarantee of such debt under similar circumstances, as long as such Subsidiary Guarantor's obligations in respect of such other debt are terminated at substantially the same time as its guarantee of the Notes, (C) any debt that is being refinanced at substantially the same time that the guarantee of the Notes is being released, provided that any obligations of the relevant Subsidiary Guarantor in respect of the debt that is incurred in the refinancing shall be included in the calculation of the relevant Subsidiary Guarantor's indebtedness for borrowed money and (D) for the avoidance of doubt, any debt in respect of which such Subsidiary Guarantor is an obligor (as a guarantor or borrower) (i) between or among the Parent Guarantor and any subsidiary or subsidiaries thereof or (ii) between or among any subsidiaries of the Parent Guarantor. As of the date of this summary, RAI is the only Subsidiary Guarantor to which the above provision is relevant. Under the EMTN Programme, a Subsidiary Guarantor's guarantee is released if at any time the aggregate amount of indebtedness for borrowed money for which the Subsidiary Guarantor is an obligor does not exceed 10% of the outstanding long term debt of BAT as reflected in the balance sheet included in BAT's most recent publicly released interim or annual consolidated financial statements, as evidenced by a certificate to such effect addressed to the trustee under the EMTN Programme and signed by a director of BAT. ADDITIONAL AMOUNTS The Issuer or, if applicable, each Guarantor, will make payments of, or in respect of, principal, premium (if any) and interest on the Notes, or any payment pursuant to the applicable Guarantee, as the case may be, without withholding or deduction for or on account of any present or future tax, levy, impost or other similar governmental charge whatsoever imposed, assessed, levied or collected ("Taxes") by or for the account of the United States, the United Kingdom (in the case of a payment by the Parent Guarantor or BATIF), The Netherlands (in the case of a payment by a Dutch Guarantor) or any other jurisdiction through which payment is made by or on behalf of the Issuer or, if applicable, such Guarantor (or any political subdivision thereof or any authority thereof having the power to tax) (a "Relevant Taxing Jurisdiction"), unless such withholding or deduction is required by law. If the Issuer or, if applicable, any Guarantor, is required by a Relevant Taxing Jurisdiction to so withhold or deduct such Taxes, the Issuer or, if applicable, such Guarantor, will pay to the holder of a Note such additional amounts ("Additional Amounts") as may be necessary so that the net amount received by such holder will not be less than the amount such holder would have received if such Taxes had not been

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73 withheld or deducted; provided, however, that amounts with respect to any United States Tax shall be payable only to holders that are not United States persons (within the meaning of the Code); and provided further, that neither the Issuer nor such Guarantor shall be required to pay any Additional Amounts for or on account of: (i) any Taxes that would not have been so imposed, assessed, levied or collected but for the fact that the holder or beneficial owner of the applicable Note or Guarantee (or a fiduciary, settlor, beneficiary, member or shareholder of, or possessor of a power over, such holder, if such holder is an estate, trust, partnership or corporation) is or has been a domiciliary, national or resident of, or engaging or having been engaged in a trade or business or maintaining or having maintained a permanent establishment or being or having been physically present in, a Relevant Taxing Jurisdiction or otherwise having or having had some connection with a Relevant Taxing Jurisdiction other than the holding or ownership of, or the collection of principal of, and premium (if any) or interest on, a Note or the enforcement of the applicable Guarantee, as the case may be; (ii) any Taxes that would not have been so imposed, assessed, levied or collected but for the fact that, where presentation is required in order to receive payment, the applicable Note or Guarantee was presented more than 30 days after the date on which such payment became due and payable or was provided for, whichever is later, except to the extent that the holder or beneficial owner thereof would have been entitled to Additional Amounts had the applicable Note or Guarantee been presented for payment on any day during such 30- day period; (iii) any estate, inheritance, gift, sales, transfer, personal property or similar Taxes; (iv) any Taxes that are payable otherwise than by withholding or deduction from payments on or in respect of the applicable Note or Guarantee; (v) any Taxes that would not have been so imposed, assessed, levied or collected but for the failure by the holder or the beneficial owner of the applicable Note or Guarantee to (A) provide any certification, identification, information, documents or other evidence concerning the nationality, residence or identity of the holder or the beneficial owner or its connection with the Relevant Taxing Jurisdiction or (B) make any valid or timely declaration or claim or satisfy any other reporting, information or procedural requirements relating to such matters if, in either case, compliance is required by statute, regulation, relevant income tax treaty or administrative practice of the Relevant Taxing Jurisdiction as a condition to relief or exemption from such Taxes; (vi) any Taxes imposed by reason of the holder or the beneficial owner of the applicable Note or Guarantee being or having been considered a bank receiving payments on an extension of credit made pursuant to a loan agreement entered into in the ordinary course of its trade or business, as described in Section 881(c)(3)(A) of the Code (or any amended or successor provisions); (vii) any Taxes imposed on interest received by a 10-percent shareholder of the Issuer within the meaning of Section 871(h)(3)(B) or Section 881(c)(3)(B) of the Code (or any amended or successor provisions); (viii) any backup withholding imposed pursuant to Section 3406 of the Code (or any amended or successor provisions); 74 (ix) any Taxes imposed pursuant to Section 871(h)(6) or Section 881(c)(6) of the Code (or any amended or successor provisions); (x) any Taxes imposed by reason of the holder or the beneficial owner of the applicable Note or Guarantee being or having been a personal holding company, passive foreign investment company or controlled foreign corporation for U.S. federal income tax purposes or a corporation that has accumulated earnings to avoid U.S. federal income tax; (xi) any Taxes imposed or withheld pursuant to Sections 1471 through 1474 of the Code (or any amended or successor provisions), any Treasury regulations promulgated thereunder, any official interpretations thereof or any agreements entered into in connection with the implementation thereof; or (xii) any combination of the Taxes described in (i) through (xi) above. In addition, Additional Amounts will not be paid with respect to any payment of the principal of, or any premium or interest on, any of the applicable Notes or Guarantees to any holder that is a fiduciary, a partnership, a limited liability company or any person other than the sole beneficial owner of such payment to the extent a beneficiary or settlor with respect to such fiduciary, a member of such partnership, an interest holder in such limited liability company or a beneficial owner that would not have been entitled to such amounts had such beneficiary, settlor, member, interest holder or beneficial owner been the holder of the applicable Notes or Guarantees. Unless otherwise stated, references in any context to the payment of principal of, and any premium or interest on, any Note, or any payment pursuant to the Guarantees, will be deemed to include payment of Additional Amounts to the extent that, in such context, Additional Amounts are, were or would be payable in respect thereof. REDEMPTION The Notes are subject to optional redemption by the Issuer as described below under "—Optional Redemption". The Notes will be subject to optional redemption by the Issuer in the event of certain changes in tax laws applicable to payments in respect of the Notes as described below under " —Redemption for Tax Reasons". Optional Redemption The Issuer may redeem the Notes, in whole or in part, at the Issuer's option, at any time and from time to time before the applicable Par Call Date, for all series of Notes at a redemption price equal to the greater of (x) 100% of the principal amount of the Notes to be redeemed and (y) as determined by the Independent Investment Banker (as defined below), the sum of the present values of the applicable Remaining Scheduled Payments (as defined below) discounted to the date of redemption (the "Redemption Date") on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months or, in the case of an incomplete month, the number of days elapsed) at the Treasury Rate (as defined below) plus, in the case of each respective series of Notes as follows: 3.557% Notes 20 basis points 4.390% Notes 25 basis points 4.540% Notes 30 basis points 75 together with, in each case, accrued and unpaid interest on the principal amount of the Notes to be redeemed to, but excluding, the Redemption Date. If the Issuer elects to redeem the 3.557% Notes, 4.390% Notes or the 4.540% Notes on or after the applicable Par Call Date (as defined below), the Issuer will pay an amount equal to 100% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption. In connection with such optional redemption the following defined terms apply: • Comparable Treasury Issue means the United States Treasury security selected by the Independent Investment Banker that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to, the remaining term of the 3.557% Notes, 4.390% Notes or the 4.540% Notes, as the case may be, to the relevant Par Call Date. • Comparable Treasury Price means, with respect to any Redemption Date, (A) the average of the Reference Treasury Dealer Quotations for that Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations or (B) if the Independent Investment Banker for the applicable Notes obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such Quotations. • Independent Investment Banker means one of the Reference Treasury Dealers (as defined below) appointed by the Issuer to act as the "Independent Investment Banker". • Par Call Date means (i) May 15, 2027, with respect to any 3.557% Notes (three months prior to the maturity date of the 3.557% Notes), (ii) February 15, 2037, with respect to any 4.390% Notes (six months prior to the maturity date of the 4.390% Notes) and (iii) February 15, 2047, with respect to any 4.540% Notes (six months prior to the maturity date of the 4.540% Notes). • Reference Treasury Dealer means each of Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Capital Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. and their respective successors and two other nationally recognized investment banking firms that are Primary Treasury Dealers specified from time to time by the Issuer; provided, however, that if any of the foregoing shall cease to be a primary U.S. government securities dealer in New York City (a "Primary Treasury Dealer"), the Issuer shall substitute therefor another nationally recognized investment banking firm that is a Primary Treasury Dealer. • Reference Treasury Dealer Quotation means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day immediately preceding that Redemption Date. • Remaining Scheduled Payments means, with respect to each Note to be redeemed, the remaining scheduled payments of the principal thereof and interest thereon that would be due from and including the related Redemption Date, but for such redemption, to but excluding the relevant Par Call Date; provided, however, that if that Redemption Date is not an Interest Payment Date with 76 respect to such Notes, the amount of the next succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued thereon to that Redemption Date. • Treasury Rate means, with respect to any Redemption Date, the rate per annum equal to the semi- annual equivalent yield to maturity (computed as of the third Business Day immediately preceding that Redemption Date) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for that Redemption Date. Notice of any optional redemption will be given in accordance with " —Notice" below at least 10 days but not more than 30 days before the Redemption Date to each holder of the Notes to be redeemed. If less than all the Notes of any series are to be redeemed, in the case of a redemption at the Issuer's option as discussed in this section, the Notes to be redeemed shall be selected in accordance with applicable procedures of DTC. Redemption for Tax Reasons Each series of Notes is also redeemable by the Issuer, in whole but not in part, at 100% of the principal amount of such Notes plus any accrued and unpaid interest to the applicable Redemption Date (including any Additional Amounts) at the Issuer's option at any time prior to their maturity if, due to a Change in Tax Law (as defined below): (i) the Issuer or a Guarantor, in accordance with the terms of the applicable Notes or applicable Guarantee, has, or would, become obligated to pay any Additional Amounts to the holders or beneficial owners of the Notes of that series; (ii) in the case of a Guarantor, (A) the Parent Guarantor would be unable, for reasons outside its control, to procure payment by the Issuer or any other Guarantor or (B) the procuring of such payment by the Issuer and each such other Guarantor would be subject to withholding taxes imposed by a Relevant Taxing Jurisdiction; and (iii) such obligation cannot otherwise be avoided by such Guarantor, the Parent Guarantor or the Issuer, taking reasonable measures available to it. In such case, the Issuer may redeem the applicable Notes upon not less than 30 nor more than 60 days' notice as provided in " —Notice" below, at 100% of the principal amount of such Notes plus accrued and unpaid interest to the Redemption Date (including Additional Amounts); provided, that, (a) no such notice of redemption shall be given earlier than 90 days prior to the earliest date on which the Issuer or such Guarantor, as the case may be, would be obligated to pay any such Additional Amounts in respect of the applicable Notes or applicable Guarantee, as applicable, then due and (b) at the time such notice is given, such obligation to pay such Additional Amounts remains in effect. The Issuer's right to redeem the applicable Notes shall continue as long as the Issuer or a Guarantor is obligated to pay such Additional Amounts, notwithstanding that the Issuer or such Guarantor, as the case may be, shall have made payments of Additional Amounts. Prior to the giving of any such notice of redemption, the Issuer must deliver to the Trustee: (i) an officer's certificate stating that the Issuer is entitled to effect such redemption and setting forth a statement of facts showing that the conditions precedent to the right of the Issuer so to redeem have occurred; and (ii) an opinion of independent counsel or an independent accountant of recognized standing, selected by the Issuer or any Guarantor, as applicable, with respect to tax matters of the Relevant Taxing Jurisdiction to the effect that the Issuer or such Guarantor has, or would, become obligated to pay such Additional Amounts as a result of such Change in Tax Law. For the purposes hereof, "Change in Tax Law" shall mean: (i) any changes in, or amendment to, any law of a Relevant Taxing Jurisdiction (including any regulations or rulings promulgated thereunder and including, for this purpose, any treaty entered into by the Relevant Taxing Jurisdiction) or any amendment to or change in the application or official interpretation (including judicial or administrative interpretation) of such law, which change or amendment becomes effective or, in the case of an official interpretation, is announced, on or after August 15, 2017; or (ii) if the Issuer or a Guarantor consolidates,

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77 merges, amalgamates or combines with, or transfers or leases its assets substantially as an entirety to, any person that is incorporated or tax resident under the laws of any jurisdiction other than a Relevant Taxing Jurisdiction (a "successor") and as a consequence thereof such person becomes the successor obligor to the Issuer or such Guarantor in respect of Additional Amounts that may become payable (in which case, for purposes of this redemption provision, all references to the Issuer or such Guarantor shall be deemed to be and include references to such person), any change in, or amendment to, any law of the jurisdiction of organization or tax residence of such successor, or the jurisdiction through which payments will be made by the successor, or any political subdivision or taxing authority thereof or thereon for purposes of taxation (including any regulations or rulings promulgated thereunder and including, for this purpose, any treaty entered into by such jurisdiction) or any amendment to or change in the application or official interpretation (including judicial or administrative interpretation) of such law, which change or amendment becomes effective or, in the case of an official interpretation, is announced, on or after the date of such consolidation, merger, amalgamation, combination or other transaction. General Upon presentation of any Note redeemed in part only, the Issuer will execute and the Paying Agent will authenticate and deliver (or cause to be transferred by book-entry) to, or on, the order of the holder thereof, at the expense of the Issuer, a new Note or Notes, of authorized denominations, in principal amount equal to the unredeemed portion of the Note so presented. On or before any Redemption Date (as defined above), the Issuer shall deposit with the Paying Agent money sufficient to pay the redemption price of and accrued and unpaid interest on the Notes to be redeemed on such date. The redemption price shall be calculated by the Independent Investment Banker and the Issuer, and the Trustee and any agent shall be entitled to rely on such calculation. On and after any Redemption Date, interest will cease to accrue on the Notes or any portion thereof called for redemption. MATURITY Unless previously purchased or redeemed by the Issuer, and cancelled, the principal amount of each respective series of Notes shall mature on: Series of Notes Maturity date 3.557% Notes August 15, 2027 4.390% Notes August 15, 2037 4.540% Notes August 15, 2047 in an amount equal, in each case, to their principal amount, with accrued and unpaid interest to such date. REACQUISITION There is no restriction on the ability of the Issuer to purchase or repurchase Notes, provided, that any Notes so repurchased shall be cancelled and not reissued. SINKING FUND There is no provision for a sinking fund for any of the Notes. 78 CERTAIN DEFINITIONS Set forth below is a summary of certain of the defined terms used in the Notes and the 2017 BATCAP Indenture. You should refer to the Notes and the 2017 BATCAP Indenture for the full definition of all defined terms as well as any other terms used herein for which no definition is provided. "EMTN Programme" means the Euro Medium Term Note Programme to which BATIF, BATCAP, BATHTN and BATNF are parties as the issuers under the programme and notes issued thereunder are guaranteed by the Parent Guarantor, each of the issuers thereunder (except when it is the relevant issuer) and RAI, as amended from time to time. "Person" means any individual, corporation, partnership, joint venture, association, limited liability company, joint stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. "Quoted Borrowing" means any indebtedness which: (a) is represented by notes, debentures or other securities issued otherwise than to constitute or represent advances made by banks and/or other lending institutions; (b) is denominated, or confers any right to payment of principal and/or interest, in or by reference to any currency other than the currency of the country in which the issuer of the indebtedness has its principal place of business or is denominated, or confers any right to payment of principal and/or interest, in or by reference to the currency of such country but is placed or offered for subscription or sale by or on behalf of, or by agreement with, the issuer of such indebtedness as to over 20% outside such country; and (c) at its date of issue is, or is intended by the issuer of such indebtedness to become, quoted, listed, traded or dealt in on any stock exchange or other organized and regulated securities market in any part of the world. COVENANTS OF THE ISSUER AND THE GUARANTORS Negative Pledge The 2017 BATCAP Indenture provides that so long as any of the applicable Notes remains outstanding, neither the Issuer nor any Guarantor will secure or allow to be secured any Quoted Borrowing or any payment under any guarantee by any of them of any Quoted Borrowing by any mortgage, charge, pledge or lien (other than arising by operation of law) upon any of its undertaking or assets, whether present or future, unless at the same time the same mortgage, charge, pledge or lien is extended, or security which is not materially less beneficial to the holders of the applicable Notes than the security given as aforesaid or which shall be approved by consent of the holders of not less than 75% in aggregate principal amount of the applicable Notes at the time outstanding is extended or created (as the case may be), to secure equally and ratably the principal of, and interest on, and all other payments (if any) in respect of the applicable Notes. Limitation on Mergers, Consolidations, Amalgamations and Combinations So long as any of the applicable Notes remain outstanding, neither the Issuer nor any Guarantor may consolidate with or merge into any other person or sell, convey, transfer or lease its properties and assets as an entirety or substantially as an entirety to any person (other than any sale or conveyance by way of a lease in the ordinary course of business), unless: (i) in the case of the Issuer, any successor person assumes the Issuer's obligations on the applicable Notes and under the 2017 BATCAP Indenture and, in the case of any Guarantor, any successor person assumes such Guarantor's obligations on the applicable Guarantee and under the 2017 BATCAP Indenture; (ii) immediately after giving effect to such transaction, no Event of Default, and no event which, after notice or lapse of time or both, would become 79 an Event of Default, shall have occurred and be continuing; (iii) such successor person is organized under the laws of the United States, the United Kingdom, The Netherlands or any other country that is a member of the Organization for Economic Cooperation and Development as of the date of such succession; (iv) such successor person agrees to pay any Additional Amounts imposed by the jurisdiction in which such successor person is incorporated or otherwise a resident for tax purposes or through which payments are made and resulting therefrom or otherwise; and (v) if as a result of such consolidation or merger or such sale, conveyance, transfer or lease, properties or assets of the Issuer or any Guarantor would become subject to a mortgage, pledge, security interest, lien or similar encumbrance to secure payment of any indebtedness for borrowed money of the Issuer or a Guarantor which would not be permitted by the applicable Notes or under the 2017 BATCAP Indenture, the Issuer or any Guarantor or such successor person, as the case may be, shall take such steps as shall be necessary to effectively secure the Notes equally and ratably with (or prior to) all indebtedness for borrowed money secured thereby. The limitation on mergers, consolidations, amalgamations and combinations described in this section " — Limitation on Mergers, Consolidations, Amalgamations and Combinations" shall not apply to any consolidation, merger, amalgamation or combination in which the Issuer or applicable Guarantor is the surviving corporation except that, in such case, the provisions of (ii) and (v) above shall apply such that: (x) immediately after giving effect to such transaction, no Event of Default, and no event which, after notice or lapse of time or both, would become an Event of Default, shall have occurred and be continuing; and (y) if as a result of such consolidation or merger or such sale, conveyance, transfer or lease, properties or assets of the Issuer or any Guarantor would become subject to a mortgage, pledge, security interest, lien or similar encumbrance to secure payment of any indebtedness for borrowed money of the Issuer or a Guarantor which would not be permitted by the applicable Notes or under the 2017 BATCAP Indenture, the Issuer or any Guarantor, as the case may be, shall take such steps as shall be necessary to effectively secure the Notes equally and ratably with (or prior to) all indebtedness for borrowed money secured thereby. The 2017 BATCAP Indenture does not contain covenants or other provisions to afford protection to holders of the Notes in the event of a highly leveraged transaction or a change in control of the Issuer or any Guarantor except as provided above. Upon certain mergers or consolidations involving the Issuer or a Guarantor, or upon certain sales or conveyances of the properties of the Issuer or a Guarantor, the obligations of the Issuer or such Guarantor, under the applicable Notes or the applicable Guarantee, shall be assumed by the person formed by such merger or consolidation or which shall have acquired such property and upon such assumptions such person shall succeed to and be substituted for the Issuer or such Guarantor, as the case may be, and then the Issuer or such Guarantor will be relieved from all obligations under the Notes and the applicable Guarantee, as the case may be. The terms "Issuer" and "Guarantor", as used in the Notes and the 2017 BATCAP Indenture, also refer to any such successors or assigns so substituted. Although there is a limited body of case law interpreting the phrase "entirety or substantially as an entirety", there is no precise established definition of the phrase under applicable law. Accordingly, in certain circumstances, there may be a degree of uncertainty as to whether a particular transaction would involve a disposition of "entirety or substantially as an entirety" of the Issuer's assets and its subsidiaries taken as a whole. EVENTS OF DEFAULT The following will be Events of Default (each an "Event of Default") with respect to the applicable Notes: 80 (i) Non-Payment: default is made in the payment of: (a) any installment of interest (excluding Additional Amounts) upon any applicable Note as and when the same shall become due and payable, and continuance of such default for a period of 14 days or more; (b) applicable Additional Amounts as and when the same shall become due and payable, and continuance of such default for a period of 14 days; or (c) all or any part of the principal or premium, if any, of any applicable Note as and when the same shall become due and payable either at maturity, upon any redemption, by declaration or otherwise, and continuance of such default for three days; (ii) Breach of Other Obligations: the Issuer or any Guarantor does not perform or comply with any one or more of its other obligations under the applicable Notes or the 2017 BATCAP Indenture (other than those described in paragraph (i) above) which is not remedied within 30 days after written notice of such default shall have been given to the Issuer by the Trustee or to the Issuer and the Trustee by the holders of at least 25% of the outstanding principal amount of the Notes; (iii) Cross-Default: (a) any other present or future indebtedness for borrowed money of the Issuer or any Guarantor, other than the Notes issued by the Issuer, becomes due and payable prior to its stated maturity by reason of any default or event of default in respect thereof by the Issuer or any Guarantor and remains unpaid; or (b) any such indebtedness for borrowed money is not paid when due or, as the case may be, within any applicable grace period; or (c) the Issuer or any Guarantor fails to pay when due and called upon (after the expiry of any applicable grace period) any amount payable by it under any present or future guarantee for, or indemnity in respect of, any indebtedness for borrowed money and which remains unpaid; provided that (x) payment of the indebtedness for borrowed money is not being contested in good faith and in accordance with legal advice or (y) the aggregate amount of the indebtedness for borrowed money, guarantees and indemnities in respect of which one or more of the events mentioned above in (a), (b) and (c) has or have occurred and is or are continuing, equals or exceeds £750 million or its equivalent in any other currency of the indebtedness for borrowed money or, if greater, 1.25% of the Total Equity of the Parent Guarantor, as set out in the "Total Equity" line item in the most recent consolidated group balance sheet of the Parent Guarantor and its subsidiaries in the Parent Guarantor's most recent Annual Report; (iv) Cessation of Guarantees: any Guarantee ceases to be in full force and effect (except as contemplated by the terms of the 2017 BATCAP Indenture) or any Guarantor denies or disaffirms in writing its obligations under the 2017 BATCAP Indenture or Guarantee; (v) Enforcement Proceedings: a distress or execution or other legal process is levied or enforced against or an encumbrancer takes possession of or a receiver, administrative receiver or other similar officer is appointed of the whole or a part of the assets of the Issuer or any Guarantor which is substantial in relation to the BAT Group taken as a whole and is not discharged, stayed, removed or paid out within 45 days after such execution or appointment; (vi) Security Enforced: any mortgage, charge, pledge, lien or other encumbrance, present or future, created or assumed by the Issuer or any Guarantor becomes enforceable and any step is taken to enforce it (including the taking of possession or the appointment of a receiver, administrative receiver, manager or other similar person) against all or substantially all of the assets of the Issuer or any Guarantor and is not discharged within 45 days;

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81 (vii) Insolvency: the Issuer or any Guarantor is insolvent or bankrupt or unable to pay its debts (in respect of companies incorporated in England and Wales, within the meaning of Sections 123(1)(b) or (e) or Section 123(2) of the UK Insolvency Act 1986), stops, suspends or threatens to stop or suspend payment of all or a material part of its debts, proposes or makes a general assignment or an arrangement or composition (otherwise than for the purposes of reconstruction, amalgamation, reorganization, merger or consolidation or other similar arrangement) with or for the benefit of its creditors in respect of any of such debts or a moratorium is agreed or declared in respect of or affecting all or a material part of the debts of the Issuer; (viii) Winding-up: an order is made or an effective resolution passed for the winding-up or dissolution or administration of the Issuer or any Guarantor, or the Issuer or any Guarantor shall apply or petition for a winding-up or administration order in respect of itself or ceases or threatens to cease to carry on all or substantially all of its business or operations, in each case except for the purpose of and followed by a reconstruction, amalgamation, reorganization, merger or consolidation or other similar arrangement; or (ix) Analogous Events: any event occurs that under the laws of any relevant jurisdiction has an analogous effect to any of the events referred to in any of the foregoing paragraphs (vii) and (viii). The 2017 BATCAP Indenture provides that if an Event of Default occurs and is continuing with respect to the Notes of a series, then and in each and every such case (other than certain Events of Default specified in paragraphs (vii), (viii) and (ix) above with respect to the Issuer or any Guarantor), unless the principal of all the applicable Notes shall have already become due and payable, the holders of not less than 25% in aggregate principal amount of the applicable Notes then outstanding, by notice in writing to the Issuer, each Guarantor and the Trustee, may declare the entire principal amount of all applicable Notes issued pursuant to the 2017 BATCAP Indenture and interest accrued and unpaid thereon, if any, to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable, without any further declaration or other act on the part of any holder. If certain Events of Default described in paragraph (vii), (viii) or (ix) above occur with respect to the Issuer and are continuing, the principal amount of and accrued and unpaid interest on all the applicable Notes issued pursuant to the 2017 BATCAP Indenture shall become immediately due and payable, without any declaration or other act on the part of the Trustee or any holder. Under certain circumstances, the holders of a majority in aggregate principal amount of the applicable Notes then outstanding, by written notice to the Issuer, each Guarantor and the Trustee, may waive defaults and rescind and annul declarations of acceleration and its consequences, but no such waiver or rescission and annulment shall extend to or shall affect any subsequent default or shall impart any right consequent thereon. The holders of a majority in aggregate principal amount of the applicable Notes then outstanding will have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, subject to certain limitations to be specified in the 2017 BATCAP Indenture, including providing to the Trustee indemnity satisfactory to it. An Event of Default with respect to any series of Notes would not necessarily constitute an event of default with respect to the other series of Notes. The 2017 BATCAP Indenture also provides that no holder of any Notes governed by the 2017 BATCAP Indenture may institute any action or proceeding at law or in equity or in bankruptcy or otherwise upon or under or with respect to the 2017 BATCAP Indenture, or for the appointment of a trustee, receiver, 82 liquidator, custodian or other similar official or for any other remedy under the 2017 BATCAP Indenture (except suits for the enforcement of payment of overdue principal or interest) unless (1) the holder of a Note gives to the Trustee written notice of a continuing Event of Default, (2) the holders of at least 25% in principal amount of the then outstanding Notes make a written request to the Trustee to pursue the remedy, (3) the holder or holders of Notes offer, and if requested, provide to the Trustee indemnity reasonably satisfactory to the Trustee against any loss, liability or expense, (4) the Trustee does not comply with the request within 60 days after receipt of the request and the offer and, if requested, the provision of indemnity and (5) during such 60-day period the holders of a majority in principal amount of the then outstanding Notes do not give the Trustee a direction inconsistent with the request. The holder of a Note may not use the 2017 BATCAP Indenture to prejudice the rights of another holder of a Note or to obtain a preference or priority over another holder of a Note (it being understood that the Trustee does not have an affirmative duty to ascertain whether or not such actions or forbearances are unduly prejudicial to such holders). SATISFACTION AND DISCHARGE The 2017 BATCAP Indenture provides that BAT may, subject to satisfying certain conditions, discharge certain obligations to the holders of Notes of any series of Notes that have not already been delivered to the Trustee for cancellation and that either have become due and payable or will become due and payable within one year (or scheduled for redemption within one year) by depositing with the Trustee or Paying Agent, in trust, funds in an amount sufficient to pay the entire indebtedness on such series of Notes in respect of principal and premium, if any, and interest, if any, to the date of such deposit (if such Notes have become due and payable) or to the maturity thereof or redemption date, as the case may be, along with an officer's certificate and an opinion of counsel stating that all conditions precedent relating to the satisfaction and discharge of the 2017 BATCAP Indenture have been complied with. LEGAL DEFEASANCE AND COVENANT DEFEASANCE The 2017 BATCAP Indenture provides that the Issuer will have the option either (a) to be deemed (together with each Guarantor) to have paid and discharged the entire indebtedness represented by, and obligations under, a series of Notes and the applicable Guarantees and to have satisfied all the obligations under the 2017 BATCAP Indenture relating to the series of Notes (except for certain obligations, including those relating to the defeasance trust and obligations to register the transfer or exchange of Notes, to replace mutilated, destroyed, lost or stolen Notes and to maintain paying agencies) on the 91st day after the applicable conditions described below have been satisfied or (b) to cease (together with each Guarantor) to be under any obligation to comply with the covenant described above under " —Covenants of the Issuer and the Guarantors—Negative Pledge" and the condition relating to the absence of any events of default under "—Covenants of the Issuer and the Guarantors—Limitation on Mergers, Consolidations, Amalgamations and Combinations" under the 2017 BATCAP Indenture, and non- compliance with such covenants and the occurrence of all events described above under " —Events of Default" will not give rise to any Event of Default under the 2017 BATCAP Indenture, at any time after the applicable conditions described below have been satisfied. In order to exercise either defeasance option, the Issuer must (i) deposit with the Trustee or Paying Agent, irrevocably in money or Government Obligations (as defined in the 2017 BATCAP Indenture) funds sufficient in the opinion of a certified public accounting firm of national reputation for the payment of principal of and interest on the applicable outstanding Notes of any series to and including the Redemption Date irrevocably designated by the Issuer on or prior to the date of deposit of such money or Government Obligations, and must (ii) comply with certain other conditions, including delivering to the Trustee an opinion of U.S. counsel to the effect that beneficial owners of the applicable Notes will not recognize income, gain or loss for United States federal income tax purposes as a result of the exercise of 83 such option and will be subject to United States federal income tax on the same amount and in the same manner and at the same time as would have been the case if such option had not been exercised and, in the case of clause (a) in the previous paragraph, which opinion must state that such opinion is based on a ruling received from or published by the United States Internal Revenue Service or on a change of law after August 15, 2017. MODIFICATION AND WAIVER Without Consent of Noteholders The 2017 BATCAP Indenture contains provisions permitting the Issuer, each Guarantor and the Trustee, without the consent of the holders of any of the applicable Notes at any time outstanding under such 2017 BATCAP Indenture, from time to time and at any time, to enter into a supplemental indenture amending or supplementing such 2017 BATCAP Indenture, the Notes or the Guarantees in order to: • convey, transfer, assign, mortgage or pledge to the holders of the applicable Notes or any person acting on their behalf as security for the applicable Notes any property or assets; • evidence the succession of another person to the Issuer or any Guarantor, as the case may be, or successive successions, and the assumption by the successor person(s) of the covenants, agreements and obligations of the Issuer or any Guarantor, as the case may be, pursuant to the 2017 BATCAP Indenture; • evidence and provide for the acceptance of appointment of a successor or successors to the Trustee and/or the Paying Agent, Transfer Agent, Calculation Agent and Registrar, as applicable; • add to the covenants of, or the restrictions, conditions or provisions applicable to, the Issuer and any Guarantor, as the case may be, such further covenants, restrictions, conditions or provisions as the Issuer and any Guarantor, as the case may be, shall consider to be for the protection of the holders of the applicable Notes issued pursuant to the 2017 BATCAP Indenture, including to eliminate one or both prongs of the release provision under "—Guarantees—Release", and to make the occurrence, or the occurrence and continuance, of a default in any such additional covenants, restrictions, conditions or provisions an Event of Default under the 2017 BATCAP Indenture permitting the enforcement of all or any of the several remedies provided in the 2017 BATCAP Indenture; provided that, in respect of any such additional covenant, restriction, condition or provision, such supplemental indenture may provide for a particular period of grace after default (which may be shorter or longer than that allowed in the case of other defaults) or may limit the remedies available to the Trustee upon such an Event of Default; • if required by the requirements of the SEC, comply with any requirements of the SEC in connection with the qualification of the 2017 BATCAP Indenture under the TIA; • modify the restrictions on, and procedures for, resale and other transfers of the applicable Notes pursuant to law, regulation or practice relating to the resale or transfer of restricted securities generally; • cure any ambiguity or to correct or supplement any provision contained in the 2017 BATCAP Indenture, the Notes, or the Guarantees which may be defective or inconsistent with any other provision contained therein or to make such other provision in regard to matters or questions arising under the 2017 BATCAP Indenture, the Notes or the Guarantees as the Issuer, any Guarantor or the Trustee may deem necessary or desirable and which will not, in the opinion of 84 the Issuer or any Guarantor, adversely affect the interests of the holders of the applicable Notes in any material respect; • issue an unlimited aggregate principal amount of Notes under the 2017 BATCAP Indenture or to "reopen" the applicable series of Notes and create and issue additional notes having identical terms and conditions as the applicable Notes (or in all respects except for the issue date, issue price, payment of interest accruing prior to the issue date of such additional notes and/or the first payment of interest following the issue date of such additional notes) so that the additional notes are consolidated and form a single series with the outstanding applicable Notes; and • evidence the addition of any new Guarantor of the Notes and the 2017 BATCAP Indenture, or the release of any Guarantor from its obligations with respect to the Notes and the 2017 BATCAP Indenture, in either case pursuant to the terms of the 2017 BATCAP Indenture. With Consent of Noteholders The 2017 BATCAP Indenture contains provisions permitting the Issuer, each Guarantor and the Trustee, with the consent of the holders of not less than a majority in aggregate principal amount of all series of the Notes affected by such supplemental indenture (voting as one class) at the time outstanding under the 2017 BATCAP Indenture (including consents obtained in connection with a tender offer or exchange offer for the applicable Notes), from time to time and at any time, to enter into a supplemental indenture for the purpose of amending, waiving or otherwise modifying the provisions of the 2017 BATCAP Indenture, the Notes and the Guarantees, or adding any provisions to or changing in any manner or eliminating any of the provisions of the applicable Notes or of modifying in any manner the rights of the holders of the applicable Notes; provided, that no such supplemental indenture may, without the consent of the holder of each of the Notes so affected: • change the stated maturity of the applicable Note of, or the date for payment of any principal of, or installment of interest on, any applicable Note; or • reduce the principal amount of or the rate or amount of interest on any applicable Note or Additional Amounts payable with respect thereto or reduce the amount payable thereon in the event of redemption or default or change the method for determining the interest rate thereon; or • change the currency of payment of principal of or interest on any applicable Note or Additional Amounts payable with respect thereto; or change the obligation of the Issuer or any Guarantor, as the case may be, to pay Additional Amounts (except as otherwise permitted by such applicable Note); or • impair the right to institute suit for the enforcement of any such payment on or with respect to any applicable Note; or • reduce the percentage of the aggregate principal amount of the applicable Notes outstanding the consent of whose holders is required for any such supplemental indenture; or • reduce the aggregate principal amount of any applicable Note outstanding necessary to modify or amend the 2017 BATCAP Indenture or any such Note or to waive any future compliance or past default or reduce the quorum requirements or the percentage of aggregate principal amount of any applicable Notes outstanding required for the adoption of any action at any meeting of holders of such Notes or to reduce the percentage of the aggregate principal amount of such Notes

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85 outstanding necessary to rescind or annul any declaration of the principal of all accrued and unpaid interest on any Note to be due and payable, provided, that no consent of any holder of any applicable Note shall be necessary to permit the Trustee, the Issuer and each of the Guarantors to execute supplemental indenture as described under " —Without Consent of Noteholders" above. Any modifications, amendments or waivers to the 2017 BATCAP Indenture or to the conditions of the applicable Notes will be conclusive and binding on all holders of the applicable Notes, whether or not they have consented to such action or were present at the meeting at which such action was taken, and on all future holders of the applicable Notes, whether or not notation of such modifications, amendments or waivers is made upon such Notes. Any instrument given by or on behalf of any holder of such a Note in connection with any consent to any such modification, amendment or waiver will be irrevocable once given and will be conclusive and binding on all subsequent registered holders of such Note. PRESCRIPTION Under New York's statute of limitations, any legal action upon the Notes in respect of interest or principal must be commenced within six years after the payment thereof is due. NOTICE Notices to holders of Notes will be given by first-class mail postage prepaid to the last addresses of such holders as they appear in the Notes register; provided, no such mailing shall be required if Notes are held through DTC, as such notice shall be given in accordance with applicable procedures of DTC. Such notices will be deemed to have been given on the date of such publication or mailing. So long as any Global Notes representing the Notes are held in their entirety on behalf of a clearing system, or any of its participants, there may be substituted for the publication and mailing of notice to holders of Notes described above the delivery of the relevant notices to the clearing system, and its participants, for communication by them to the entitled accountholders. Any such notice shall be deemed to have been given on the day on which the said notice was given to the clearing system, and its participants. LISTING The Notes are listed on the New York Stock Exchange. CONSENT TO SERVICE Each of the non-U.S. Guarantors has initially designated BATCAP as their authorized agent for service of process in any legal suit, action or proceeding arising out of or relating to the performance of its obligations under the 2017 BATCAP Indenture and the Notes brought in any state or federal court in the Borough of Manhattan, the City of New York, and will irrevocably submit (but for those purposes only) to the non-exclusive jurisdiction of any such court in any such suit, action or proceeding. GOVERNING LAW The 2017 BATCAP Indenture, Notes and Guarantees shall be governed by and construed in accordance with the laws of the State of New York, without regard to principles of conflicts of laws thereof. 86 REGARDING THE TRUSTEE AND AGENTS Wilmington Trust, National Association is the trustee under the 2017 BATCAP Indenture. Citibank, N.A., London Branch has been appointed by the Issuer to act as registrar, transfer agent, calculation agent and paying agent for the Notes. Citibank, N.A., New York Branch replaced Citibank, N.A., London Branch as paying agent, registrar, transfer agent and calculation agent on October 16, 2018. From time to time, Citibank, N.A., London Branch, Citibank, N.A., New York Branch and their respective affiliates perform various other services for the BAT and its affiliates. The 2017 BATCAP Indenture contains limitations on the rights of the trustee, if it becomes a creditor of the Issuer or any Guarantor, to obtain payment of claims in some cases, or to realize on property received in respect of any of these claims as security or otherwise. The Trustee is permitted to engage in other transactions. However, if the Trustee acquires any conflicting interest (as defined in the TIA), it must either eliminate its conflict within 90 days, apply to the SEC for permission to continue or resign. The 2017 BATCAP Indenture provides that except during the continuance of an Event of Default, the Trustee will perform only such duties as are specifically set forth in such 2017 BATCAP Indenture. During the continuance of an Event of Default of which the Trustee has received written notice, the Trustee will exercise such of the rights and powers vested in it under the 2017 BATCAP Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of such person's own affairs.

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## Exhibit 4.20

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1 Execution Version DATED 6 NOVEMBER 2025 BRITISH AMERICAN TOBACCO P.L.C. B.A.T. INTERNATIONAL FINANCE P.L.C. B.A.T. NETHERLANDS FINANCE B.V. B.A.T CAPITAL CORPORATION as Borrowers BRITISH AMERICAN TOBACCO P.L.C. as Guarantor HSBC BANK PLC as Agent HSBC BANK USA, N.A. as US$ Swingline Agent HSBC BANK PLC as Euro Swingline Agent and CERTAIN BANKS AND FINANCIAL INSTITUTIONS as Banks £5,000,000,000 REVOLVING CREDIT FACILITIES Herbert Smith Freehills Kramer LLP Exhibit 4.20 2 **TABLE OF CONTENTS** Clause Headings Page 1. INTERPRETATION ........................................................................................................ 4 2. THE FACILITIES .......................................................................................................... 24 3. PURPOSE .................................................................................................................... 29 4. CONDITIONS PRECEDENT ........................................................................................ 30 5. ADVANCES .................................................................................................................. 30 6. REPAYMENT ............................................................................................................... 32 7. PREPAYMENT AND CANCELLATION ....................................................................... 33 8. INTEREST .................................................................................................................... 37 9. PAYMENTS .................................................................................................................. 40 10. TAXES .......................................................................................................................... 43 11. CHANGES TO THE CALCULATION OF INTEREST .................................................. 47 12. INCREASED COSTS ................................................................................................... 51 13. ILLEGALITY AND MITIGATION ................................................................................... 52 14. GUARANTEE ............................................................................................................... 53 15. REPRESENTATIONS AND WARRANTIES ................................................................ 55 16. UNDERTAKINGS ......................................................................................................... 58 17. DEFAULT ..................................................................................................................... 60 18. THE ADMINISTRATIVE PARTIES ............................................................................... 63 19. FEES ............................................................................................................................ 69 20. EXPENSES .................................................................................................................. 72 21. STAMP DUTIES ........................................................................................................... 72 22. INDEMNITIES .............................................................................................................. 72 23. CALCULATIONS AND CERTIFICATES ...................................................................... 73 24. AMENDMENTS AND WAIVERS .................................................................................. 74 25. CHANGES TO THE PARTIES ..................................................................................... 77 26. CONFIDENTIALITY OF FUNDING RATES ................................................................. 85 27. DISCLOSURE OF INFORMATION AND KNOW YOUR CUSTOMER REQUIREMENTS ......................................................................................................... 86 28. SET-OFF ...................................................................................................................... 87 29. PRO RATA SHARING .................................................................................................. 88 30. SEVERABILITY ............................................................................................................ 88 31. COUNTERPARTS ........................................................................................................ 89 32. NOTICES ...................................................................................................................... 89 33. LANGUAGE .................................................................................................................. 91 34. JURISDICTION ............................................................................................................ 91 35. WAIVER OF TRIAL BY JURY ...................................................................................... 92 36. GOVERNING LAW ....................................................................................................... 92 37. US PATRIOT ACT ........................................................................................................ 92 3 38. CONTRACTUAL RECOGNITION OF BAIL-IN ............................................................ 92 39. RECOGNITION OF THE U.S. SPECIAL RESOLUTION REGIMES ........................... 92 SCHEDULE 1 BANKS AND COMMITMENTS ................................................................................. 94 SCHEDULE 2 CONDITIONS PRECEDENT DOCUMENTS ............................................................ 99 SCHEDULE 3 FORM OF REQUEST ............................................................................................. 101 SCHEDULE 4 FORMS OF ACCESSION DOCUMENTS ............................................................... 102 SCHEDULE 5 FORM OF CONFIDENTIALITY UNDERTAKING ................................................... 107 SCHEDULE 6 FORM OF INCREASE CONFIRMATION ............................................................... 108 SCHEDULE 7 EXTENSION REQUESTS AND EXTENSION NOTICES ....................................... 110 SCHEDULE 8 TERM OUT – REVOLVING FACILITY A ................................................................ 116 SCHEDULE 9 REFERENCE RATE TERMS .................................................................................. 118 SCHEDULE 10 DAILY NON-CUMULATIVE COMPOUNDED RFR RATE .................................... 126 4 THIS AGREEMENT is dated November 2025 BETWEEN: (1) BRITISH AMERICAN TOBACCO P.L.C. (registered number 3407696), B.A.T. INTERNATIONAL FINANCE P.L.C. (registered number 1060930), B.A.T. NETHERLANDS FINANCE B.V. (registered number 60533536) and B.A.T CAPITAL CORPORATION (registered number 0911777), as original borrowers (the "Original Borrowers"); (2) BRITISH AMERICAN TOBACCO P.L.C. as guarantor (the "Guarantor"); (3) THE FINANCIAL INSTITUTIONS listed in Part A of Schedule 1 (Banks and Commitments) as mandated lead arrangers and bookrunners (the "MLABs"); (4) THE FINANCIAL INSTITUTIONS listed in Part A of Schedule 1 (Banks and Commitments) as lead arrangers (the "Lead Arrangers"); (5) THE FINANCIAL INSTITUTIONS listed in Part B of Schedule 1 (Banks and Commitments) as banks (the "Original Banks"); (6) HSBC BANK PLC as agent (in this capacity the "Agent"); (7) HSBC BANK USA, N.A. as US$ swingline agent (in this capacity the "US$ Swingline Agent"); and (8) HSBC BANK PLC as Euro swingline agent (in this capacity the "Euro Swingline Agent"). IT IS AGREED as follows: 1. INTERPRETATION 1.1 Definitions In this Agreement: "Acceptable Bank" means a bank or financial institution which has a rating for its long term unsecured and non credit-enhanced debt obligations of A- or higher by S&P or Fitch Rating Ltd or A3 or higher by Moody's or a comparable rating from an internationally recognised credit rating agency. "Additional Borrower" means any member of the Group which becomes a Borrower in accordance with Clause 25.6 (Additional Borrowers). "Additional Business Day" means any day specified as such in the applicable Reference Rate Terms. "Administrative Party" means the Agent, the US$ Swingline Agent or the Euro Swingline Agent. "Advance" means a Revolving Facility Advance, a Swingline Advance or a Term Out Advance. "Affiliate" means a Subsidiary or a holding company (as defined in Section 1159 of the Companies Act 2006) of a person and any other Subsidiary of that holding company. "Agent's Spot Rate of Exchange" means: (a) the Agent's spot rate of exchange; or (b) (if the Agent does not have an available spot rate of exchange), any other publicly available spot rate of exchange selected by the Agent (acting reasonably), for the purchase of the relevant currency with Sterling in the London foreign exchange market at or about 11.00 am on a particular day. "Agreed Percentage" means, in relation to a Bank and a Swingline Advance under a Swingline Facility, the amount of its Commitment under the related Revolving Facility expressed as a percentage of: (a) in respect of Swingline Facility A, the US$ Swingline Total Commitments; and 6

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5 (b) in respect of Swingline Facility B, Euro Swingline Total Commitments. "Anti-Bribery and Corruption Laws" means all applicable anti-bribery and corruption laws and regulations, including but not limited to the US Foreign and Corrupt Practices Act 1977 and the UK Bribery Act 2010. "Anti-Money Laundering Laws" means all applicable anti-money laundering laws and regulations. "Arrangers" means the MLABs and Lead Arrangers. "Article 55 BRRD" means Article 55 of Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms. "Available Commitment" means, in relation to a Revolving Facility at any time, a Bank's relevant Revolving Facility Commitment less the aggregate amount of: (a) the Original Sterling Amount of its share of any outstanding Revolving Facility Advance under the relevant Revolving Facility; and (b) the Original Sterling Amount of its share, or if applicable the share of any of its Swingline Affiliates or any Bank of which it is a Swingline Affiliate, of any Advance under any Swingline Facility relating to such Revolving Facility at such time, provided that for the purposes of calculating any Bank's Available Commitment on any day, any Advance under the relevant Revolving Facility or Swingline Facility which is due to be repaid or prepaid on such day shall be ignored and any Advance under the relevant Revolving Facility or Swingline Facility which is to be made on such day shall be taken into account. "Available Facility" means in relation to a Revolving Facility at any time, the aggregate amount at that time of the Available Commitments of all the Banks under that Revolving Facility. "Available Swingline Commitment" means, in relation to a Swingline Facility at any time, a Bank's Swingline Commitment under that Swingline Facility less the aggregate amount of its share of any outstanding Swingline Advances under that Swingline Facility at that time, provided that: (a) for the purposes of calculating any Bank's Available Swingline Commitment on any day, any Swingline Advance which is due to be repaid or prepaid on such day shall be ignored and any Swingline Advance which is to be made on such day shall be taken into account; and (b) such amount is not greater than the Bank's (or any Bank of which it is a Swingline Affiliate) undrawn Commitment under the related Revolving Facility at that time. If it is greater, that Bank's Available Swingline Commitment shall be an amount equal to that Bank's (or any Bank of which it is a Swingline Affiliate) undrawn Commitment under the related Revolving Facility or zero, as the case may be. "Available Swingline Facility" means, in relation to a Swingline Facility at any time, the aggregate amount at that time of the Available Swingline Commitments of all the Banks under that Swingline Facility. "Bail-In Action" means the exercise of any Write-down and Conversion Powers. "Bail-In Legislation" means: (a) in relation to an EEA Member Country which has implemented, or which at any time implements, Article 55 BRRD, the relevant implementing law or regulation as described in the EU Bail-In Legislation Schedule from time to time; (b) in relation to any state other than such an EEA Member Country and the United Kingdom, any analogous law or regulation from time to time which requires contractual recognition of any Write-down and Conversion Powers contained in that law or regulation; and (c) in relation to the United Kingdom, the UK Bail-In Legislation. 6 "Banks" means those financial institutions listed in Part B of Schedule 1 (Banks and Commitments) and their respective successors and assigns which are for the time being participating in the Facilities and any bank or financial institution which has become a Bank in accordance with Clause 25.2 (Transfers by Banks) or 25.10 (Increase). "Borrowed Moneys Indebtedness" means, in relation to any person, any obligation (whether incurred as principal or surety) for the payment or repayment of money, whether present or future, actual or contingent, comprising or constituted by: (a) any liability to repay the principal of or to pay interest on borrowed money or deposits; or (b) any liability: (i) under or pursuant to any letter of credit, acceptance credit facility or note purchase facility; or (ii) in relation to any foreign currency transaction or any purchase price for property or services payment of which is deferred for a period in excess of 180 days after the later of taking possession or becoming the legal owner thereof or the service being rendered; or (iii) with regard to any guarantee or indemnity in respect of repayment of obligations referred to in paragraphs (i) and (ii) above or of any other borrowed money. "Borrower" means, subject to Clauses 7.4 (Mandatory Prepayment by Borrowers) and 7.5 (Changes to Borrowers), the Original Borrowers and each Additional Borrower. "Borrower Accession Agreement" means a letter substantially in the form of Part B of Schedule 4 (Forms of Accession Documents) with such amendments as the Agent may approve or reasonably require. "Borrower DTTP Filing means an HM Revenue & Customs' Form DTTP2 duly completed and filed by the relevant Borrower, which: (a) relates to an Original Bank and: (i) where the Borrower is an Original Borrower, is filed with HM Revenue & Customs at least 30 working days prior to the date of the first interest payment after the Signing Date; or (ii) where the Borrower is an Additional Borrower, is filed with HM Revenue & Customs at least 30 working days prior to the date of the first interest payment after the date on which that Borrower becomes an Additional Borrower; or (b) relates to a Bank that is a New Bank or an Increase Bank and: (i) where the Borrower is a Borrower as at the relevant Novation Date (or the date on which the increase in Commitments described in the relevant Increase Confirmation takes effect) is filed with HM Revenue & Customs at least 30 working days prior to the date of the first interest payment after that Novation Date (or the date on which the increase in Commitments described in the relevant Increase Confirmation takes effect); or (ii) where the Borrower is not a Borrower as at the relevant Novation Date (or the date on which the increase in Commitments described in the relevant Increase Confirmation takes effect), is filed with HM Revenue & Customs at least 30 working days prior to the date of the first interest payment after the date on which that Borrower becomes an Additional Borrower. "Borrowings" means (without double counting) any indebtedness in respect of the following: 7 (a) money borrowed or raised and debit balances at banks; (b) any bond, note, loan stock, debenture or similar debt instrument; (c) acceptance credit facilities; (d) receivables sold or discounted (other than on a non-recourse basis); (e) leases and hire purchase contracts which are required to be capitalised under IFRS as applied in the UK; (f) any other transaction having the commercial effect of a borrowing or raising of money excluding trade credit in the ordinary course of business; and (g) guarantees in respect of indebtedness of any person falling within any of paragraphs (a) to (f) (both inclusive) above, provided that indebtedness owing by one member of the Group to another member of the Group shall not be taken into account as Borrowings. "Business Day" means a day (other than a Saturday or Sunday) on which banks are open for general business in London and: (a) (in relation to any date for payment or purchase of a currency other than euro) the principal financial centre of the country of that currency and, in the case of a day on which any payment is required to be made by an Obligor, in New York; and (b) (in relation to any date for payment or purchase of euro) any TARGET Day; and (c) (in relation to: (i) the fixing of an interest rate in relation to a Term Rate Advance; (ii) any date for payment or purchase of an amount relating to a Compounded Rate Advance; or (iii) the determination of the first day or the last day of a Term for a Compounded Rate Advance, or otherwise in relation to the determination of the length of such a Term), which is an Additional Business Day relating to that Advance or Unpaid Sum. "Central Bank Rate" has the meaning given to that term in the applicable Reference Rate Terms. "Central Bank Rate Adjustment" has the meaning given to that term in the applicable Reference Rate Terms. "Change of Tax Law" means the introduction, suspension, withdrawal or cancellation of, or change in, or change in the official interpretation, administration or official application of, any law, regulation having the force of law, tax treaty or any published practice or published concession of His Majesty's Revenue & Customs or any other relevant taxing or fiscal authority in any jurisdiction, occurring after the Signing Date or, if later, after the date on which the relevant Bank becomes a Party (as applicable), other than the entry into force and/or the entry into effect of the MLI in respect of a tax treaty concluded by the Netherlands. "Code" means the United States Internal Revenue Code of 1986, as amended. "Commitment" means a Revolving Facility Commitment or a Swingline Commitment. "Compounded Rate Advance" means any Advance (other than a Swingline Advance) or, if applicable, Unpaid Sum in a Compounded Rate Currency which is not a Term Rate Advance. "Compounded Rate Currency" means any currency which is not a Term Rate Currency. "Compounded Rate Interest Payment" means the aggregate amount of interest that: (a) is, or is scheduled to become, payable under any Finance Document; and (b) relates to a Compounded Rate Advance. 8 "Compounded Reference Rate" means, in relation to any RFR Banking Day during the Term of a Compounded Rate Advance, the percentage rate per annum which is the Daily Non-Cumulative Compounded RFR Rate for that RFR Banking Day. "Compounding Methodology Supplement" means, in relation to the Daily Non- Cumulative Compounded RFR Rate, a document which: (a) is agreed in writing by the Parent, the Agent (in its own capacity) and the Agent (acting on the instructions of the Majority Banks); (b) specifies a calculation methodology for that rate; and (c) has been made available to the Parent and each Finance Party. "Daily Non-Cumulative Compounded RFR Rate" means, in relation to any RFR Banking Day during a Term for a Compounded Rate Advance, the percentage rate per annum determined by the Agent (or by any other Finance Party which agrees to determine that rate in place of the Agent) in accordance with the methodology set out in Schedule 10 (Daily Non-Cumulative Compounded RFR Rate) or in any relevant Compounding Methodology Supplement. "Daily Rate" means the rate specified as such in the applicable Reference Rate Terms. "Dangerous Substance" means any radioactive emissions and any natural or artificial substance (whether in solid or liquid form or in the form of a gas or vapour and whether alone or in combination with any other substance) which, taking into account the concentrations and quantities present and the manner in which it is being used or handled, it is reasonably foreseeable will cause harm to man or any other living organism or damage to the Environment including any controlled, special, hazardous, toxic, radioactive or dangerous waste. "Default" means an Event of Default or an event specified in Clause 17 (Default) which, with the giving of notice, determination of materiality or expiry of any grace period under this Agreement (or any combination of the foregoing), would constitute an Event of Default. "Defaulting Bank" means any Bank: (a) which has failed to make its participation in an Advance available or has notified the Agent that it will not make its participation in an Advance available by the Utilisation Date of that Advance in accordance with Clause 5.7 (Payment of proceeds); (b) which has otherwise rescinded or repudiated a Finance Document; or (c) with respect to which an Insolvency Event has occurred and is continuing, unless, in the case of paragraph (a) above: (i) its failure to pay is caused by: (A) administrative or technical error; or (B) a Disruption Event; and payment is made within five Business Days of its due date; or (ii) that Bank is disputing in good faith whether it is contractually obliged to make the payment in question. "Defeased Borrowings" means any indebtedness (or obligations in respect thereof, such as future interest) in respect of capital market issues in existence on the Signing Date which has been fully covered by cash or cash equivalents as a means of achieving the economic effect of full repayment of that indebtedness. "Disruption Event" means either or both of: (a) a material disruption to those payment or communication systems or to those financial markets which are, in each case, required to operate in order for payments to be made in connection with a Facility (or otherwise in order for the

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9 transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is beyond the control of, any of the Parties; or (b) the occurrence of any other event which results in a disruption (of a technical or systems-related nature) to the treasury or payments operations of a Party preventing that, or any other Party: (i) from performing its payment obligations under the Finance Documents; or (ii) from communicating with other Parties in accordance with the terms of the Finance Documents, and which (in either such case) is not caused by, and is beyond the control of, the Party whose operations are disrupted. "Dutch Borrower" means a Borrower incorporated, established or resident for tax purposes in the Netherlands. "€STR" means, in relation to any day: (a) the euro short term rate (€STR) administered by the European Central Bank (or any other person which takes over the administration of that rate) published by the European Central Bank (or any other person which takes over publication of that rate); or (b) if the rate described in (a) above is unavailable, the applicable rate shall be the most recent applicable rate described in (a) above which is as of a day which is no more than 30 days before that day. "EEA Member Country" means any member state of the European Union, Iceland, Liechtenstein and Norway. "Employee Plan" means an employee pension benefit plan within the meaning of Section 3(2) of ERISA (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which any US Borrower or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of ERISA. "Environment" means the media of air, water and land (wherever occurring) and in relation to the media of air and water includes, without limitation, the air and water within buildings and the air and water within other natural or man-made structures above or below ground and any water contained in any underground strata. "Environmental Approvals" means all authorisations of any kind required under Environmental Laws to which any member of the Group is subject at any time. "Environmental Law" means all legislation, regulations or orders (insofar as such regulations or orders have the force of law) to the extent that it relates to the protection or impairment of the Environment or the control of Dangerous Substances (whether or not in force at the Signing Date) which are capable of enforcement in any applicable jurisdiction by legal process. "ERISA" means the United States Employee Retirement Income Security Act of 1974 (or any successor legislation thereto) as amended from time to time, and the regulations promulgated and rulings issued thereunder. "ERISA Affiliate" means any trade or business (whether or not incorporated) that for purposes of Title I and Title IV of ERISA and Section 412 of the Code would be deemed at any relevant time to be a single employer with any US Borrower, pursuant to Section 414(b), (c), (m) or (o) of the Code or Section 4001 of ERISA. "ERISA Event" means: 10 (a) any reportable event, as defined in Section 4043 of ERISA, with respect to an Employee Plan, as to which PBGC has not by regulation waived the requirement of Section 4043(a) of ERISA that it be notified of such event; (b) the filing under Section 4041 of ERISA of a notice of intent to terminate any Employee Plan or the termination of any Employee Plan under Section 4041 of ERISA, or the receipt of notice by any US Borrower or any ERISA Affiliate under section 4042 of ERISA from the PBGC for the termination of, or the appointment of a trustee to administer, any Employee Plan; (c) any failure by any Employee Plan to satisfy the minimum funding requirements of Sections 412 and 430 of the Code or Section 302 of ERISA applicable to such Employee Plan, in each case whether or not waived; (d) the incurrence by any US Borrower or any ERISA Affiliate of any liability with respect to the complete or partial withdrawal, within the meaning of Section 4203 or 4205 of ERISA, of any US Borrower or any ERISA Affiliate from an Employee Plan or Multiemployer Plan; (e) the filing under Section 412 of the Code or Section 302 of ERISA of any request for a minimum funding variance with respect to any Employee Plan; (f) any US Borrower or any ERISA Affiliate incurring any liability under Title IV of ERISA with respect to the termination of any Employee Plan (other than premiums due and not delinquent under Section 4007 of ERISA); and (g) a determination that any Employee Plan is, or is expected to be, in "at risk" status (as defined in Section 303(i)(4) of ERISA or Section 430(i)(4) of the Code). "EU Bail-In Legislation Schedule" means the document described as such and published by the Loan Market Association (or any successor person) from time to time. "Euro Swingline Advance" means an advance made or to be made by a Euro Swingline Bank under Swingline Facility B. "Euro Swingline Bank" means, subject to Clause 25.2 (Transfers by Banks), a Bank which has a Euro Swingline Commitment. "Euro Swingline Commitment" means in respect of a Euro Swingline Bank and Swingline Facility B, the amount in euro set out opposite its name in Column 4 of Part B of Schedule 1 (Banks and Commitments) or specified as such in the relevant Novation Certificate, to the extent not transferred, cancelled or reduced under this Agreement. "Euro Swingline Rate" means, on any day, the percentage rate per annum determined by the Euro Swingline Agent to be the aggregate of: (a) €STR; and (b) the Margin. "Euro Swingline Total Commitments" means the aggregate for the time being of the Euro Swingline Commitments under Swingline Facility B, being €1,000,000,000 as at the Signing Date. "Event of Default" means an event specified as such in Clause 17 (Default). "Existing Credit Agreement" means the £6,000,000,000 revolving credit facilities agreement originally dated 12 March 2020 made between, among others, British American Tobacco p.l.c., B.A.T. International Finance p.l.c., B.A.T. Netherlands Finance B.V. and B.A.T Capital Corporation as borrowers, British American Tobacco p.l.c. as guarantor and HSBC Bank plc as agent, as amended and/or as amended and restated from time to time. "Existing Facility A Agreement" means the £2,538,000,000 revolving credit facility agreement dated 6 March 2023 made between, among others, British American Tobacco p.l.c., B.A.T. International Finance p.l.c., B.A.T. Netherlands Finance B.V. and B.A.T Capital Corporation as borrowers, British American Tobacco p.l.c. as guarantor and HSBC Bank plc as agent, as amended and/or as amended and restated from time to time. 11 "Extension Request" means: (a) a Revolving Facility A First Extension Request; (b) a Revolving Facility B First Extension Request; (c) a Revolving Facility A Second Extension Request; or (d) a Revolving Facility B Second Extension Request. "Facility" means the Revolving Facilities (and if the Term Out Option has been exercised then, after the Term Out Date, the Term Out Facility) and the Swingline Facilities described in Clause 2.1 (Facilities) together, the Facilities. "Facility Office" means the office(s) notified by a Bank to the Agent: (a) on or before the date it becomes a Bank; or (b) by not less than five Business Days' notice, as the office(s) through which it will perform all or any of its obligations under this Agreement. "Fallback Interest Period" means, in relation to a Term Rate Advance, the period specified as such in the applicable Reference Rate Terms. "FATCA" means: (a) sections 1471 to 1474 of the Code or any associated regulations; (b) any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the US and any other jurisdiction, which (in either case) facilitates the implementation of any law or regulation referred to in paragraph (a) above; or (c) any agreement pursuant to the implementation of any treaty, law or regulation referred to in paragraphs (a) or (b) above with the US Internal Revenue Service, the US government or any governmental or taxation authority in any other jurisdiction. "FATCA Application Date" means: (a) in relation to a "withholdable payment" described in section 1473(1)(A)(i) of the Code (which relates to payments of interest and certain other payments from sources within the US), 1 July 2014; or (b) in relation to a "passthru payment" described in section 1471(d)(7) of the Code not falling within paragraph (a) above, the first date from which such payment may become subject to a deduction or withholding required by FATCA. "FATCA Deduction" means a deduction or withholding required by FATCA. "Federal Funds Rate" means in relation to any day, the rate per annum determined by the US$ Swingline Agent to be equal to: (a) the rate on overnight federal funds transactions calculated by the Federal Reserve Bank of New York as the federal funds effective rate as published for that day (or, if that day is not a New York Business Day, for the immediately preceding New York Business Day) by the Federal Reserve Bank of New York; or (b) if a rate is not so published for any day which is a New York Business Day, the average of the quotations for that day on overnight federal funds transactions received by the US$ Swingline Agent from three depository institutions of recognised standing selected by the US$ Swingline Agent, and if, in either case, that rate is less than zero, the Federal Funds Rate shall be deemed to be zero. "Fee Letters" means: (a) the letter dated on or about the Signing Date between the Agent and the Parent; 12 (b) in the case of fees due to the US$ Swingline Agent in its role as an Administrative Party, the letter dated on or about the Signing Date between the US$ Swingline Agent and the Parent; (c) in the case of fees due to the Euro Swingline Agent in its role as an Administrative Party, the letter dated on or about the Signing Date between the Euro Swingline Agent and the Parent; and (d) any other document designated as a Fee Letter by the Agent and the Parent, setting out the amount of various fees referred to in Clause 19 (Fees). "Final Maturity Date" means: (a) in respect of Revolving Facility A and Swingline Facility A, subject to Clauses 2.4 (Extension Option – Revolving Facility A and Swingline Facility A) and 2.5 (Term Out Option – Revolving Facility A), the date falling 364 days after the Signing Date; and (b) in respect of Revolving Facility B and Swingline Facility B, subject to Clause 2.6 (Extension Option – Revolving Facility B and Swingline Facility B), the date falling on the fifth anniversary of the Signing Date. "Finance Document" means this Agreement, any Reference Rate Supplement, any Compounding Methodology Supplement, each Fee Letter, a Novation Certificate, a Borrower Accession Agreement, each novation agreement entered into pursuant to Clause 7.5.2 (Changes to Borrowers) or any other document designated as such by the Agent and the Parent. "Finance Party" means a Bank or an Administrative Party. "Funding Rate" means any individual rate notified by a Bank to the Agent pursuant to Clause 11.8.1(B) (Cost of Funds). "GAAP" means generally accepted accounting principles in the jurisdiction of incorporation of the Parent including IFRS. "Group" means the Parent and its Subsidiaries. "Historic Primary Term Rate" means, in relation to any Term Rate Loan, the most recent applicable Primary Term Rate for a period equal in length to the Term of that Loan and which is as of a day which is no more than five days before the Quotation Day. "Historic RFR" means, in relation to a currency and an RFR Banking Day for that currency, the most recent RFR for a day which is no more than five RFR Banking Days before that RFR Banking Day. "IFRS" means international accounting standards within the meaning of the IAS Regulation 1606/2002 to the extent applicable to the relevant financial statements. "Impaired Agent" means an Administrative Party at any time when: (a) it has failed to make (or has notified a Party that it will not make) a payment required to be made by it under the Finance Documents by the due date for payment; (b) that Administrative Party otherwise rescinds or repudiates a Finance Document; (c) (if that Administrative Party is also a Bank) it is a Defaulting Bank under paragraph (a) or (b) of the definition of "Defaulting Bank"; or (d) an Insolvency Event has occurred and is continuing with respect to that Administrative Party; unless, in the case of paragraph (a) above: (i) its failure to pay is caused by: (A) an administrative or technical error; or (B) a Disruption Event; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13 payment is made within five Business Days of its due date; or (ii) that Administrative Party is disputing in good faith whether it is contractually obliged to make the payment in question. "Increase Bank" has the meaning given to that term in Clause 25.10.1(B)(1) (Increase). "Increase Confirmation" means a confirmation substantially in the form set out in Schedule 6 (Form of Increase Confirmation). "Insolvency Event" means in relation to a Finance Party, that the Finance Party: (a) is dissolved (other than pursuant to a consolidation, amalgamation or merger); (b) becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become due; (c) makes a general assignment, arrangement or composition with or for the benefit of its creditors; (d) institutes or has instituted against it, by a regulator, supervisor or any similar official with primary insolvency, rehabilitative or regulatory jurisdiction over it in the jurisdiction of its incorporation or organisation or the jurisdiction of its head or home office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors' rights, all other than by way of an Undisclosed Administration, or a petition is presented for its winding-up or liquidation by it or such regulator, supervisor or similar official; (e) has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors' rights, or a petition is presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition is instituted or presented by a person or entity not described in paragraph (d) above and: (i) results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation; or (ii) is not dismissed, discharged, stayed or restrained in each case within 21 days of the institution or presentation thereof; (f) has exercised in respect of it one or more of the stabilisation powers pursuant to Part 1 of the Banking Act 2009 and/or has instituted against it a bank insolvency proceeding pursuant to Part 2 of the Banking Act 2009 or a bank administration proceeding pursuant to Part 3 of the Banking Act 2009; (g) has a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger); (h) seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all of its assets, all other than by way of an Undisclosed Administration; (i) has a secured party take possession of all or substantially all of its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all of its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within 21 days thereafter; (j) causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in paragraphs (a) to (i) above; or (k) takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence, in any of the foregoing acts. 14 "Interpolated Primary Term Rate" means, in relation to any Term Rate Advance or overdue amount, the rate (rounded to the same number of decimal places as the two relevant Primary Term Rates) which results from interpolating on a linear basis between: (a) the applicable Primary Term Rate for the longest period (for which that Primary Term Rate is available) which is less than the Term of that Advance or overdue amount; and (b) the applicable Primary Term Rate for the shortest period (for which that Primary Term Rate is available) which exceeds the Term of that Advance or overdue amount, each as at the Quotation Time. "ITA" means the Income Tax Act 2007. "Lookback Period" means the number of days specified as such in the applicable Reference Rate Terms. "Majority Banks" means, at any time: (a) if any Advances are outstanding, Banks with an aggregate Original Sterling Amount of Advances and undrawn Commitments at that time of more than 662/3 per cent. of the aggregate Original Sterling Amount of all Advances then outstanding and undrawn Commitments then in force; or (b) if no Advances are outstanding, Banks whose Commitments then aggregate more than 662/3 per cent. of the Total Commitments (or if the Total Commitments have been reduced to zero, aggregated more than 662/3 per cent. of the Total Commitments immediately before the reduction). "Margin" means the percentage figure calculated in accordance with Clause 8.3 (Calculation of the Margin). "Margin Stock" means "margin stock" as defined in Regulation U and X issued by the Board of Governors of the Federal Reserve System of the United States. "Market Disruption Rate" means the rate (if any) specified as such in the applicable Reference Rate Terms. "MLI" means the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting. "Month" means, in relation to a Term (or any other period for the accrual of commission or fees in a currency), a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month, subject to adjustment in accordance with the rules specified as Business Day Conventions in the applicable Reference Rate Terms. "Moody's" means Moody's Investors Service Limited or any successor to its rating business. "Multiemployer Plan" means a "multiemployer plan" (as defined in Section 3(37) of ERISA) that is subject to Title IV of ERISA contributed to for any employees of any US Borrower or any ERISA Affiliate. "New Bank" has the meaning given to that term in Clause 25.2.1 (Transfers by Banks). "New York Business Day" means a day (other than a Saturday or Sunday) on which banks are open for business in New York City. "Novation Certificate" has the meaning given to it in Clause 25.3.1(A) (Procedure for novations). "Novation Date" means, in relation to an assignment, transfer or novation in accordance with Clause 25.2 (Transfers by Banks), the date on which such assignment, transfer or novation takes effect. "Obligor" means each Borrower and the Guarantor. 15 "OFAC" means the Office of Foreign Assets Control of the US Department of the Treasury. "Optional Currency" means: (a) in relation to any Term Rate Advance or proposed Term Rate Advance, euro; (b) in relation to any Compounded Rate Advance or proposed Compounded Rate Advance, US Dollars or any currency other than Sterling approved by all the Banks and (i) for which there are Reference Rate Terms for that currency and (ii) which is readily available and freely transferable in the wholesale market for that currency on the Rate Fixing Day and on the Utilisation Date for that Advance in sufficient amounts to fund that Advance; (c) in relation to a US$ Swingline Advance, US Dollars; and (d) in relation to a Euro Swingline Advance, euro. "Original Sterling Amount" means: (a) the principal amount of an Advance denominated in Sterling; or (b) the principal amount of an Advance denominated in any other currency, translated into Sterling on the basis of the Agent's Spot Rate of Exchange on the date of receipt by the Agent of the Request for that Advance (or, in relation to a Term Out Advance, on the Term Out Date). "Parent" means British American Tobacco p.l.c. "Participating Member State" means any member state of the European Union that has the euro as its lawful currency in accordance with legislation of the European Union relating to Economic and Monetary Union. "Party" means a party to this Agreement. "PBGC" means the US Pension Benefit Guaranty Corporation, or any entity succeeding to all or any of its functions under ERISA. "Primary Term Rate" means the rate specified as such in the applicable Reference Rate Terms. "Prime Rate" means the prime commercial lending rate from time to time announced by the US$ Swingline Agent. Each change in the interest rate on a US$ Swingline Advance which results from a change in the Prime Rate becomes effective on the day on which the change in the Prime Rate becomes effective. "Principal Purpose Test" means the principal purpose test as set forth in article 7 of the MLI. "Qualifying Bank" means a Bank which: (a) in respect of a payment under this Agreement from a UK Resident Borrower: (i) is a bank as defined for the purposes of section 879 of the ITA which is making an advance under this Agreement and is within the charge to United Kingdom corporation tax as regards any interest received by it in respect of that advance, or would be within such charge as respects such payment apart from section 18A Corporation Tax Act 2009, which is beneficially entitled to that interest; (ii) is resident (as such term is defined in the appropriate double taxation treaty) in a country with which the United Kingdom has an appropriate double taxation treaty under which that institution is entitled to exemption from United Kingdom tax on interest and is entitled to apply for, and has applied for and obtained, approval (and with an effective notice of direction to this effect provided by His Majesty's Revenue & Customs to the relevant Borrower before the date of payment of the interest in question) under the Double Taxation Relief (Taxes on Income) (General) 16 Regulations 1970 to have interest under this Agreement paid to its Facility Office (being the Facility Office which is beneficially entitled to the interest paid to the relevant Bank under this Agreement) without withholding or deduction for or on account of United Kingdom taxation (and does not carry on business in the United Kingdom through a permanent establishment with which any loan or advance made under this Agreement in respect of which the interest is paid is effectively connected) and for this purpose double taxation treaty means any convention or agreement between the government of the United Kingdom and any other government for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains; (iii) (A) holds a passport under the HMRC DT Treaty Passport scheme and has complied with the obligations in Clause 10.5 (Borrower DTTP Filing); and (B) approval has been given (and with an effective notice of direction to this effect provided by His Majesty's Revenue & Customs to the relevant Borrower before the date of payment of the interest in question) under the Double Taxation Relief (Taxes on Income) (General) Regulations 1970 to have interest under this Agreement paid to that Bank's Facility Office (being the Facility Office which is beneficially entitled to the interest paid to the relevant Bank under this Agreement) without withholding or deduction for or on account of United Kingdom taxation, provided that this paragraph (B) shall only apply where the relevant Borrower has made a Borrower DTTP Filing; or (iv) is a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company; or (b) in respect of a payment under a Finance Document by or on behalf of a Dutch Borrower: (i) fulfils the conditions imposed by Dutch law in order for such payment not to be subject to (or, as the case may be, to be exempt from) any deduction or withholding for or on account of tax imposed by the Netherlands, other than FATCA Deduction; or (ii) (a) is a resident of a jurisdiction having a double taxation agreement with the Netherlands as amended and supplemented by the MLI (if applicable) (a "Dutch Treaty") which makes provision for a full exemption from tax imposed by the Netherlands on interest and is treated as a resident for the purposes of that Dutch Treaty, (b) does not carry on a business in the Netherlands through a permanent establishment with which any loan or advance made under this Agreement is effectively connected, and (c) fulfils any other conditions which must be fulfilled under the Dutch Treaty (including the Principal Purpose Test (if applicable) and any other conditions which must be fulfilled to obtain the full benefits under the relevant Dutch Treaty) or domestic law by residents of that jurisdiction for such residents to obtain a full exemption from tax on interest imposed by the Netherlands. "Quotation Day" means the day specified as such in the applicable Reference Rate Terms.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17 "Quotation Time" means the relevant time (if any) specified as such in the applicable Reference Rate Terms. "Quoted Tenor" means, in relation to a Primary Term Rate, any period for which that rate is customarily displayed on the relevant page or screen of an information service. "Rate Fixing Day" means: (a) in respect of a Revolving Facility Advance: (i) the Utilisation Date for an Advance denominated in Sterling; or (ii) the second Business Day before the Utilisation Date for an Advance denominated in any other currency; and (b) in respect of a Term Out Advance: (i) the Term Out Date or the first day of a Term (as applicable) for an Advance denominated in Sterling; or (ii) the second Business Day before the Term Out Date or the first day of a Term (as applicable) for an Advance denominated in any other currency. "Rating Agencies" means Moody's and S&P and "Rating Agency" shall mean any one of them. "Reference Rate Supplement" means, in relation to any currency, a document which: (a) is agreed in writing by the Parent, the Agent (in its own capacity) and the Agent (acting on the instructions of the Majority Banks); (b) specifies for that currency the relevant terms which are expressed in this Agreement to be determined by reference to Reference Rate Terms; (c) specifies whether that currency is a Compounded Rate Currency or a Term Rate Currency; and (d) has been made available to the Parent and each Finance Party. "Reference Rate Terms" means in relation to: (a) a currency; (b) an Advance or an Unpaid Sum in that currency; (c) a Term for such an Advance or Unpaid Sum (or other period for the accrual of commission or fees in respect of that currency); or (d) any term of this Agreement relating to the determination of a rate of interest in relation to such an Advance or Unpaid Sum, the terms set out for that currency in Schedule 9 (Reference Rate Terms) or in any Reference Rate Supplement. "Register" has the meaning ascribed to it in Clause 25.8 (Register). "Relevant Market" means the market specified as such in the applicable Reference Rate Terms. "Replacement Bank" has the meaning given to that term in Clause 25.12.1 (Replacement of a Defaulting Bank). "Reporting Day" means the day (if any) specified as such in the applicable Reference Rate Terms. "Reporting Time" means the relevant time (if any) specified as such in the applicable Reference Rate Terms. "Request" means a request made by a Borrower to utilise a Facility, substantially in the form of Schedule 3 (Form of Request). "Requested Amount" means the amount requested in a Request. 18 "Resolution Authority" means any body which has authority to exercise any Write-down and Conversion Powers. "Revolving Facility" means Revolving Facility A and/or Revolving Facility B, as the context may require. "Revolving Facility A" means the committed multicurrency revolving credit facility described in Clause 2.1.1 (Facilities). "Revolving Facility A Commitment" means: (a) in relation to an Original Bank, the amount in Sterling set opposite its name under Column 1 of Part B of Schedule 1 (Banks and Commitments) and the amount of any other Revolving Facility A Commitments transferred to it under this Agreement; and (b) in relation to any other Bank, the amount in Sterling of any Revolving Facility A Commitment transferred to it under this Agreement, to the extent not cancelled, reduced or transferred by it under this Agreement. "Revolving Facility A First Extension Request" has the meaning given to that term in Clause 2.4.1 (Extension Option – Revolving Facility A and Swingline Facility A). "Revolving Facility A Second Extension Request" has the meaning given to that term in Clause 2.4.2 (Extension Option – Revolving Facility A and Swingline Facility A). "Revolving Facility Advance" means an advance made or to be made by the Banks under a Revolving Facility which has not been converted into a Term Out Advance pursuant to the Term Out Option. "Revolving Facility B" means the committed multicurrency revolving credit facility described in Clause 2.1.3 (Facilities). "Revolving Facility B Commitment" means: (a) in relation to an Original Bank, the amount in Sterling set opposite its name under Column 3 of Part B of Schedule 1 (Banks and Commitments) and the amount of any other Revolving Facility B Commitments transferred to it under this Agreement; and (b) in relation to any other Bank, the amount in Sterling of any Revolving Facility B Commitment transferred to it under this Agreement, to the extent not cancelled, reduced or transferred by it under this Agreement. "Revolving Facility B First Extension Request" has the meaning given to that term in Clause 2.6.1 (Extension Option – Revolving Facility B and Swingline Facility B). "Revolving Facility B Second Extension Request" has the meaning given to that term in Clause 2.6.2 (Extension Option – Revolving Facility B and Swingline Facility B). "Revolving Facility Bank" means, at any time, a Bank with a Revolving Facility Commitment. "Revolving Facility Commitment" means a Revolving Facility A Commitment and/or a Revolving Facility B Commitment, as the context may require. "RFR" means the rate specified as such in the applicable Reference Rate Terms. "RFR Banking Day" means any day specified as such in the applicable Reference Rate Terms. "Rollover Advance" means one or more Revolving Facility Advances under a Revolving Facility: (a) made or to be made on the same day that a Revolving Facility Advance under the same Revolving Facility is due to be repaid; (b) the Original Sterling Amount of which equals or is less than the Original Sterling Amount of the relevant maturing Revolving Facility Advance(s); 19 (c) in the same currency as the relevant maturing Revolving Facility Advance(s); and (d) made or to be made to the same Borrower for the purpose of refinancing the relevant maturing Revolving Facility Advance(s). "S&P" means Standard and Poor's Credit Market Services Europe Limited or any successor to its rating business. "Security Interest" means any mortgage, hypothecation, charge, pledge or lien (unless arising by operation of law) or other security interest securing any obligation of any person. "Selection Notice" means a notice substantially in the form set out in Part B of Schedule 8 (Term Out – Revolving Facility A) given in relation to a Term Out Advance. "Signing Date" means the date of this Agreement. "Sterling Amount" means, in relation to a Swingline Commitment, the amount of that Swingline Commitment translated into Sterling on the basis of the Agent's Spot Rate of Exchange on the date any part of the Facility is to be cancelled pursuant to Clause 7.1 (Voluntary cancellation). "Subsidiary" means: (a) a subsidiary within the meaning of Section 1159 of the Companies Act 2006; and (b) unless the context otherwise requires, a subsidiary undertaking within the meaning of Section 1162(2) of the Companies Act 2006. "Swingline Advance" means a US$ Swingline Advance or a Euro Swingline Advance. "Swingline Affiliate" means, in relation to a Bank, any US$ Swingline Bank or, as the case may be, Euro Swingline Bank that is an Affiliate of that Bank and which has been notified to the Administrative Parties by that Bank in writing to be a Swingline Affiliate. "Swingline Agent" means the US$ Swingline Agent or the Euro Swingline Agent. "Swingline Bank" means a US$ Swingline Bank or a Euro Swingline Bank. "Swingline Commitment" means a US$ Swingline Commitment or a Euro Swingline Commitment. "Swingline Facility" means Swingline Facility A and/or Swingline Facility B, as the context may require (together the Swingline Facilities). "Swingline Facility A" means the committed US Dollar swingline facility, forming part of Revolving Facility A, described in Clause 2.1.2 (Facilities). "Swingline Facility B" means the committed euro swingline facility forming part of Revolving Facility B, described in Clause 2.1.4 (Facilities). "Swingline Total Commitments" means the US$ Swingline Total Commitments and the Euro Swingline Total Commitments. "T2" means the real time gross settlement system operated by the Eurosystem, or any successor system. "TARGET Day" means any day on which T2 is open for the settlement of payments in euro. "Term" means each period: (a) selected by a Borrower in a Request for which the relevant Revolving Facility Advance or Swingline Advance is to be outstanding; (b) selected by a Borrower in a Selection Notice in relation to the relevant Term Out Advance; or (c) by reference to which interest on an overdue amount is calculated. "Term End Date" means the last day of a Term of an Advance. 20 "Term Out Facility" means the term facility described in Clause 2.5 (Term Out Option – Revolving Facility A). "Term Out Advance" means any Revolving Facility Advance converted to a term loan pursuant to the Term Out Option or the principal amount outstanding for the time being of that loan. "Term Out Date" means the date which, but for the exercise of the Term Out Option, would be the applicable Final Maturity Date. "Term Out Notice" means a notice substantially in the form set out in Part A of Schedule 8 (Term Out – Revolving Facility A). "Term Out Option" means the term out option described in Clause 2.5 (Term Out Option – Revolving Facility A). "Term Rate Advance" means any Advance (other than a Swingline Advance) or, if applicable, Unpaid Sum relating to the relevant Advance, which is in a Term Rate Currency. "Term Rate Currency' means euro. "Term Reference Rate" means in relation to a Term Rate Advance: (a) the applicable Primary Term Rate as of the Quotation Time for a period equal in length to the Term of that Advance; or (b) as otherwise determined pursuant to Clause 11.1 (Interest calculation if no Primary Term Rate), and if, in either case, that rate is less than zero, the Term Reference Rate shall be deemed to be zero. "Total Commitments" means the aggregate of the Total Revolving Facility A Commitments and the Total Revolving Facility B Commitments from time to time, being £5,000,000,000 as at the Signing Date. "Total Revolving Facility A Commitments" means the aggregate of the Revolving Facility A Commitments from time to time, being £2,500,000,000 as at the Signing Date (of which, subject to Clause 2.2 (Overall facility limit), up to US$2,500,000,000 is available under Swingline Facility A). "Total Revolving Facility B Commitments" means the aggregate of the Revolving Facility B Commitments from time to time, being £2,500,000,000 as at the Signing Date (of which, subject to Clause 2.2 (Overall facility limit), up to €1,000,000,000 is available under Swingline Facility B). "UK" or "United Kingdom" means the United Kingdom of Great Britain and Northern Ireland. "UK Bail-In Legislation" means Part I of the United Kingdom Banking Act 2009 and any other law or regulation applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (otherwise than through liquidation, administration or other insolvency proceedings). "UK Resident Borrower" means a Borrower resident in the UK for the purposes of UK taxation. "Undisclosed Administration" means in relation to a Bank the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official by a supervisory authority or regulator under or based on the law in the country where such Bank is subject to home jurisdiction supervision if applicable law requires that such appointment is not to be publicly disclosed. "United States" or "US" means the United States of America. "Unpaid Sum" means any sum due and payable but unpaid by an Obligor under the Finance Documents.

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21 "US Bankruptcy Law" means the United States Bankruptcy Code or any other United States Federal or State bankruptcy, insolvency or similar law. "US Borrower" means each Borrower that is incorporated or organised under the laws of the United States or any State of the United States (including the District of Columbia). "US Debtor" means a US Borrower in respect of which an Advance is outstanding under this Agreement. "US Person" means a "United States person" within the meaning of the Code and a disregarded entity (for US federal income tax purposes) owned by any such person. "US$ Swingline Advance" means an advance made or to be made by a US$ Swingline Bank under Swingline Facility A. "US$ Swingline Bank" means, subject to Clause 25.2 (Transfers by Banks), a Bank which has a US$ Swingline Commitment. "US$ Swingline Commitment" means in respect of a US$ Swingline Bank and Swingline Facility A, the amount in US Dollars set out opposite its name in Column 2 of Part B of Schedule 1 (Banks and Commitments) or specified as such in the relevant Novation Certificate, to the extent not transferred, cancelled or reduced under this Agreement. "US$ Swingline Rate" means, on any day, the higher of: (a) the Prime Rate; and (b) the aggregate of the Federal Funds Rate determined by the US$ Swingline Agent for that day and 1.00 per cent. per annum. "US$ Swingline Total Commitments" means the aggregate for the time being of the US$ Swingline Commitments under Swingline Facility A, being US$2,500,000,000 as at the Signing Date. "Utilisation Date" means the date for the making of an Advance. "Write-down and Conversion Powers" means: (a) in relation to any Bail-In Legislation described in the EU Bail-In Legislation Schedule from time to time, the powers described as such in relation to that Bail- In Legislation in the EU Bail-In Legislation Schedule; (b) in relation to the UK Bail-In Legislation, any powers under that UK Bail-In Legislation to cancel, transfer or dilute shares issued by a person that is a bank or investment firm or other financial institution or affiliate of a bank, investment firm or other financial institution, to cancel, reduce, modify or change the form of a liability of such a person or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that UK Bail-In Legislation that are related to or ancillary to any of those powers; and (c) in relation to any other applicable Bail-In Legislation: (i) any powers under that Bail-In Legislation to cancel, transfer or dilute shares issued by a person that is a bank or investment firm or other financial institution or affiliate of a bank, investment firm or other financial institution, to cancel, reduce, modify or change the form of a liability of such a person or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers; and 22 (ii) any similar or analogous powers under that Bail-In Legislation. 1.2 Construction 1.2.1 In this Agreement, unless the contrary intention appears, a reference to: (A) "assets" includes properties, revenues and rights of every description; (B) a Bank's "cost of funds" in relation to its participation in an Advance is a reference to the average cost (determined either on an actual or a notional basis) which that Bank would incur if it were to fund, from whatever source(s) it may reasonably select, an amount equal to the amount of that participation in that Advance for a period equal in length to the Term of that Advance; (C) an "authorisation" includes an authorisation, consent, approval, resolution, licence, exemption, filing, registration and notarisation; (D) "pro rata" shall mean in proportion to; (E) a "regulation" includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental body, agency, department or regulatory, self-regulatory or other authority or organisation; (F) "tax" shall mean any tax, levy, impost, duty or other charge or withholding (including backup withholding) of a similar nature (including any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same); (G) the currency of a country is to the lawful currency of that country for the time being, "€" and "euro" is a reference to the single currency of the Participating Member States, "£" and "Sterling" is a reference to the lawful currency of the United Kingdom for the time being, "US$" and "US Dollars" is a reference to the lawful currency of the United States for the time being; (H) a provision of a law is a reference to that provision as amended or re- enacted; (I) a Clause or a Schedule is a reference to a clause of or a schedule to this Agreement; (J) a person includes any person, firm, company, corporation, government, state or agency of a state or any association, trust or partnership (whether or not having separate legal personality) or two or more of the foregoing; (K) a Finance Document or another document is a reference to that Finance Document or that other document as amended, novated or supplemented; (L) a time of day is a reference to London time; (M) references to "promptly" shall exclude any day that is not a Business Day; and (N) a reference in this Agreement to a page or screen of an information service displaying a rate (other than in the definition of Primary Term Rate) shall include: (1) any replacement page of that information service which displays that rate; and (2) the appropriate page of such other information service which displays that rate from time to time in place of that information service, 23 and, if such page or service ceases to be available, shall include any other page or service displaying that rate specified by the Agent after consultation with the Parent. 1.2.2 Unless the contrary intention appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in that Finance Document or notice as in this Agreement. 1.2.3 The index to and the headings in this Agreement are for convenience only and are to be ignored in construing this Agreement. 1.2.4 The representation and warranty given in Clause 15.11 (Sanctions and Anti- Bribery and Corruption) and the undertaking given in Clause 16.12 (Sanctions and Anti-Bribery and Corruption) (each a "Sanctions Provision") shall only apply to a Restricted Bank to the extent that the relevant Sanctions Provision would not result in a violation of, conflict with or create a liability under: (i) Council Regulation (EC) 2271/96 of 22 November 1996 (as amended) and/ or any applicable national law or regulation regulating it; (ii) Council Regulation (EC) 2271/96 of 22 November 1996 (as amended) as it forms part of domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018; (iii) §7 of the German Außenwirtschaftsverordnung (in connection with section 4 paragraph 1 no. 3 of the German Außenwirtschaftsgesetz); or (iv) any similar applicable anti-boycott statute, and in connection with any waiver, determination or direction relating to any part of any Sanctions Provision which does not apply to any Restricted Bank, the Commitment of that Restricted Bank will be excluded for the purpose of determining whether the consent of the requisite majority of Banks has been obtained or whether the determination or direction by the requisite majority of Banks has been made (as applicable). For the purposes of this Clause 1.2.4 a "Restricted Bank" means a Bank that has notified the Agent and the Parent that a Sanctions Provision may result in a violation of, a conflict with or liability under: (A) EU Regulation (EC) 2271/96; (B) EU Regulation (EC) 2271/96 as it forms part of domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018; (C) §7 of the German Außenwirtschaftsverordnung (in connection with section 4 paragraph 1 no. 3 of the German Außenwirtschaftsgesetz); or (D) any similar applicable anti-boycott statute. 1.2.5 A reference in this Agreement to a Central Bank Rate shall include any successor rate to, or replacement rate for, that rate. 1.2.6 Any Reference Rate Supplement relating to a currency overrides anything relating to that currency in: (A) Schedule 9 (Reference Rate Terms); or (B) any earlier Reference Rate Supplement. 1.2.7 A Compounding Methodology Supplement relating to the Daily Non-Cumulative Compounded RFR Rate overrides anything relating to that rate in: (A) Schedule 10 (Daily Non-Cumulative Compounded RFR Rate); or (B) any earlier Compounding Methodology Supplement. 1.2.8 The determination of the extent to which a rate is "for a period equal in length" to a Term shall disregard any inconsistency arising from the last day of that Term being determined pursuant to the terms of this Agreement. 1.3 Contracts (Rights of Third Parties) Act 1999 No term of this Agreement is enforceable under the Contracts (Rights of Third Parties) Act 1999 by a person who is not a party to this Agreement. For the avoidance of doubt, this shall not prevent any person taking the benefit of this Agreement in accordance with the provisions of Clause 7.5 (Changes to Borrowers), Clause 18.7.2 (Exoneration), Clause 24 18.16 (Resignation of an Administrative Party), Clause 25.2 (Transfers by Banks) and Clause 25.6 (Additional Borrowers). 1.4 Divisions For all purposes under the Finance Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction's laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organised and acquired on the first date of its existence by the holders of its equity interests at such time. 2. THE FACILITIES 2.1 Facilities The Banks grant to the Borrowers the following facilities: 2.1.1 subject to Clauses 2.4 (Extension Option – Revolving Facility A and Swingline Facility A) and 2.5 (Term Out Option – Revolving Facility A), a committed 364-day multi-currency revolving credit facility, to be designated as Revolving Facility A, under which the relevant Revolving Facility Banks will, when requested by a Borrower, make cash advances in Sterling or Optional Currencies to that Borrower on a revolving basis; 2.1.2 subject to Clause 2.4 (Extension Option – Revolving Facility A and Swingline Facility A), a committed US Dollar swingline advance facility (which is a sub- division of Revolving Facility A) under which the relevant US$ Swingline Banks will, when requested by a Borrower, make to that Borrower US$ Swingline Advances; 2.1.3 subject to Clause 2.6 (Extension Option – Revolving Facility B and Swingline Facility B), a committed multi-currency revolving credit facility, to be designated as Revolving Facility B, under which the relevant Revolving Facility Banks will, when requested by a Borrower, make cash advances in Sterling or Optional Currencies to that Borrower on a revolving basis; and 2.1.4 subject to Clause 2.6 (Extension Option – Revolving Facility B and Swingline Facility B), a committed euro swingline advance facility (which is a sub-division of Revolving Facility B) under which the relevant Euro Swingline Banks will, when requested by a Borrower, make to that Borrower Euro Swingline Advances, in all cases subject to the other terms of this Agreement. 2.2 Overall facility limit 2.2.1 The aggregate: (A) Original Sterling Amount of all outstanding Advances under: (1) Revolving Facility A (or if applicable, the Term Out Facility) and Swingline Facility A, shall not at any time exceed the Total Revolving Facility A Commitments at that time; and (2) Revolving Facility B and Swingline Facility B, shall not at any time exceed the Total Revolving Facility B Commitments at that time; (B) amount of all Advances under Swingline Facility A, shall not at any time exceed the relevant US$ Swingline Total Commitments at that time; and (C) amount of all Advances under Swingline Facility B, shall not at any time exceed the relevant Euro Swingline Total Commitments at that time. 2.2.2 The aggregate: (A) Original Sterling Amount of:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25 (1) Revolving Facility Advances under Revolving Facility A (or if applicable, Term Out Advances under the Term Out Facility) and Swingline Advances under Swingline Facility A made by a Bank and, if applicable, any of that Bank's Swingline Affiliates, shall not at any time exceed its Revolving Facility Commitment under Revolving Facility A at that time; and (2) Revolving Facility Advances under Revolving Facility B and Swingline Advances under Swingline Facility B made by a Bank and, if applicable, any of that Bank's Swingline Affiliates, shall not at any time exceed its Revolving Facility Commitment under Revolving Facility B at that time; (B) amount of US$ Swingline Advances made by a US$ Swingline Bank under Swingline Facility A shall not at any time exceed its US$ Swingline Commitment under Swingline Facility A at that time; and (C) amount of Euro Swingline Advances made by a Euro Swingline Bank under Swingline Facility B shall not at any time exceed its Euro Swingline Commitment under Swingline Facility B at that time. 2.3 Number of Requests and Advances 2.3.1 No more than one Request may be delivered on any one day but that Request may specify any number and type of Advances from any Revolving Facility and/or Swingline Facility. 2.3.2 Unless the Agent agrees otherwise: (A) no more than 10 Advances may be outstanding under each Revolving Facility at any time; and (B) outstanding Advances at any time may not be denominated in more than 3 different currencies under each Facility. 2.4 Extension Option – Revolving Facility A and Swingline Facility A 2.4.1 The Parent may request by giving notice to the Agent (a "Revolving Facility A First Extension Request") no more than 90 days, and not less than 30 days prior to the first anniversary of the Signing Date, that the then current Final Maturity Date for all or part of Revolving Facility A and Swingline Facility A be extended for an additional 365-day period. A Revolving Facility A First Extension Request shall be in the form set out in Part A of Schedule 7 (Extension Requests and Extension Notices). 2.4.2 Without prejudice to Clause 2.4.1 above, the Parent may request by giving notice to the Agent (a "Revolving Facility A Second Extension Request") no more than 90 days, and not less than 30 days prior to the second anniversary of the Signing Date, that the then current Final Maturity Date for all or part of Revolving Facility A and Swingline Facility A be extended for a further 365-day period. A Revolving Facility A Second Extension Request shall be in the form set out in Part C of Schedule 7 (Extension Requests and Extension Notices). 2.4.3 Upon receipt of a Revolving Facility A First Extension Request under Clause 2.4.1 above, the Agent shall promptly notify each Bank. Each such Bank shall have the right, in its absolute discretion, to accept or decline any Revolving Facility A First Extension Request and any such Bank which wishes to accept the Revolving Facility A First Extension Request (each a "Revolving Facility A First Extension Bank") shall so notify the Agent no later than the date falling 20 days before the first anniversary of the Signing Date. If any Bank does not accept a Revolving Facility A First Extension Request by that date, it will be deemed to have refused it. 26 2.4.4 The Agent shall promptly notify the Parent of the Revolving Facility A First Extension Banks in the form set out in Part B of Schedule 7 (Extension Requests and Extension Notices), whereupon in respect of those Banks only (if any), the Final Maturity Date in respect of Revolving Facility A and Swingline Facility A shall be extended to the second anniversary of the Signing Date. 2.4.5 Upon receipt of a Revolving Facility A Second Extension Request under Clause 2.4.2 above, the Agent shall promptly notify each Bank. Each such Bank shall have the right, in its absolute discretion, to accept or decline any Revolving Facility A Second Extension Request and any such Bank which wishes to accept the Revolving Facility A Second Extension Request (each a "Revolving Facility A Second Extension Bank") shall so notify the Agent no later than the date falling 20 days before the second anniversary of the Signing Date. If any Bank does not accept a Revolving Facility A Second Extension Request by that date, it will be deemed to have refused it. 2.4.6 The Agent shall promptly notify the Parent of the Revolving Facility A Second Extension Banks in the form set out in Part D of Schedule 7 (Extension Requests and Extension Notices), whereupon in respect of those Banks only (if any), the then current Final Maturity Date in respect of those Banks shall be extended by 365 days to the third anniversary of the Signing Date. 2.4.7 Subject to Clause 2.5 (Term Out Option – Revolving Facility A), on the date falling 364 days after the Signing Date: (A) the Borrower shall repay the participation in the Advances under Revolving Facility A and Swingline Facility A of each Bank (other than a Revolving Facility A First Extension Bank) in full; and (B) the Commitment of each Bank (other than a Revolving Facility A First Extension Bank) under Revolving Facility A and Swingline Facility A shall be cancelled automatically. 2.4.8 Subject to Clause 2.5 (Term Out Option – Revolving Facility A), on the second anniversary of the Signing Date: (A) the Borrower shall repay the participation in the Advances under Revolving Facility A and Swingline Facility A of each Revolving Facility A First Extension Bank that has refused any Revolving Facility A Second Extension Request under Clause 2.4.5 above in full; and (B) the Commitment of each Bank (other than a Revolving Facility A Second Extension Bank) under Revolving Facility A and Swingline Facility A shall be cancelled automatically. 2.4.9 Subject to Clause 2.5 (Term Out Option – Revolving Facility A), on the third anniversary of the Signing Date: (A) the Borrower shall repay the participation in the Advances under Revolving Facility A and Swingline Facility A of each Bank in full; and (B) the Commitment of each Bank under Revolving Facility A and Swingline Facility A shall be cancelled automatically. 2.4.10 No more than one Revolving Facility A First Extension Request or Revolving Facility A Second Extension Request may be given under each of Clauses 2.4.1 and 2.4.2 above, and any such request is irrevocable. 2.5 Term Out Option – Revolving Facility A 2.5.1 The Parent may exercise the term out option by issue of a Term Out Notice to the Agent no more than 90 days, and not less than 10 days before the Final Maturity Date then applicable to Revolving Facility A. 2.5.2 The Agent shall promptly notify each Bank upon receipt of a Term Out Notice. 27 2.5.3 If the Term Out Option is so exercised then, on the Term Out Date: (A) any Available Commitment under Revolving Facility A and any Commitment under Swingline Facility A shall be automatically cancelled; (B) the applicable Final Maturity Date of all Advances then outstanding under Revolving Facility A shall be extended to either: (1) the second anniversary of the Signing Date; (2) if the applicable Final Maturity Date has already been extended pursuant to Clause 2.4.1 (Extension Option – Revolving Facility A and Swingline Facility A), the third anniversary of the Signing Date; or (3) if the applicable Final Maturity Date has already been extended pursuant to Clause 2.4.2 (Extension Option – Revolving Facility A and Swingline Facility A), the fourth anniversary of the Signing Date; and (C) accordingly, the Banks participating in Advances under Revolving Facility A on the Term Out Date shall make available a term facility to the relevant Borrowers in the amount of the Advances then outstanding under those Facilities. 2.5.4 For the avoidance of doubt, Swingline Facility A shall not be extended pursuant to this Clause 2.5 and any Advances outstanding under Swingline Facility A shall be repaid in full on or before the Term Out Date in accordance with Clause 6 (Repayment). 2.6 Extension Option – Revolving Facility B and Swingline Facility B 2.6.1 The Parent may request by giving notice to the Agent (a "Revolving Facility B First Extension Request") no more than 90 days, and not less than 30 days prior to the first anniversary of the Signing Date, that the Final Maturity Date for all or part of Revolving Facility B and Swingline Facility B be extended for an additional 365-day period. Any Revolving Facility B First Extension Request shall be in the form set out in Part A of Schedule 7 (Extension Requests and Extension Notices). 2.6.2 Without prejudice to Clause 2.6.1 above, the Parent may request by giving notice to the Agent (a "Revolving Facility B Second Extension Request") no more than 90 days, and not less than 30 days prior to the second anniversary of the Signing Date, that the then current Final Maturity Date for all or part of the Revolving Facility B and Swingline Facility B be extended for a further 365-day period. Where a Bank has not previously agreed to an extension requested pursuant to a Revolving Facility B First Extension Request, such Revolving Facility B Second Extension Request, with respect to such Bank, may be for an additional 365 day period or an additional 730 day period. Any Revolving Facility B Second Extension Request shall be in the form set out in Part C of Schedule 7 (Extension Requests and Extension Notices). 2.6.3 Upon receipt of a Revolving Facility B First Extension Request under Clause 2.6.1 above, the Agent shall promptly notify each Bank. Each such Bank shall have the right, in its absolute discretion, to accept or decline any Revolving Facility B First Extension Request and any such Bank which wishes to accept the Revolving Facility B First Extension Request (each a "Revolving Facility B First Extension Bank") shall so notify the Agent no later than the date falling 20 days before the first anniversary of the Signing Date. If any Bank does not accept a Revolving Facility B First Extension Request by that date, it will be deemed to have refused it. 2.6.4 The Agent shall promptly notify the Parent of the Revolving Facility B First Extension Banks in the form set out in Part B of Schedule 7 (Extension Requests 28 and Extension Notices), whereupon in respect of those Banks only (if any), the Final Maturity Date in respect of Revolving Facility B and Swingline Facility B shall be extended by 365 days to the sixth anniversary of the Signing Date. 2.6.5 Upon receipt of a Revolving Facility B Second Extension Request under Clause 2.6.2 above, the Agent shall promptly notify each Bank (including, for the avoidance of doubt, each Revolving Facility B First Extension Bank). Each such Bank shall have the right, in its absolute discretion, to accept or decline any Revolving Facility B Second Extension Request and any such Bank which wishes to accept the Revolving Facility B Second Extension Request (each a "Revolving Facility B Second Extension Bank") shall so notify the Agent no later than the date falling 20 days before the second anniversary of the Signing Date. If any Bank does not accept a Revolving Facility B Second Extension Request by that date, it will be deemed to have refused it. 2.6.6 The Agent shall promptly notify the Parent of the Revolving Facility B Second Extension Banks in the form set out in Part D of Schedule 7 (Extension Requests and Extension Notices), whereupon in respect of those Banks only (if any), the then current Final Maturity Date in respect of Revolving Facility B and Swingline Facility B shall be extended by 365 days or 730 days (as the case may be) to the seventh anniversary of the Signing Date. 2.6.7 On the fifth anniversary of the Signing Date: (A) the Borrower shall repay the participation in the Advances of each Bank (other than a Revolving Facility B First Extension Bank or a Revolving Facility B Second Extension Bank) in full; and (B) the Commitment of each Bank (other than a Revolving Facility B First Extension Bank or a Revolving Facility B Second Extension Bank) shall be cancelled automatically. 2.6.8 On the sixth anniversary of the Signing Date: (A) the Borrower shall repay the participation in the Advances of each Revolving Facility B First Extension Bank that has refused any Revolving Facility B Second Extension Request under Clause 2.6.2 above and any Revolving Facility B Second Extension Bank that was not originally a Revolving Facility B First Extension Bank but which agreed to extend the Final Maturity Date only by 365 days pursuant to Clause 2.6.2 above, in full; and (B) the Commitment of each Revolving Facility B First Extension Bank that has refused such Revolving Facility B Second Extension Request and any Revolving Facility B Second Extension Bank that was not originally a Revolving Facility B First Extension Bank but which agreed to extend the Final Maturity Date only by 365 days shall be cancelled automatically. 2.6.9 On the seventh anniversary of the Signing Date: (A) the Borrower shall repay the participation in the Advances of each Revolving Facility B Second Extension Bank in full; and (B) the Commitment of each Revolving Facility B Second Extension Bank shall be cancelled automatically. 2.6.10 No more than one Revolving Facility B First Extension Request or one Revolving Facility B Second Extension Request may be given under each of Clauses 2.6.1 and 2.6.2 above, and any such request is irrevocable. 2.7 Nature of a Finance Party's rights and obligations 2.7.1 The obligations of a Finance Party under the Finance Documents are several. Failure of a Finance Party to carry out those obligations does not affect the obligations of any other Party under the Finance Documents. No Finance Party is

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29 responsible for the obligations of any other Finance Party under the Finance Documents. 2.7.2 The rights of a Finance Party under or in connection with the Finance Documents are separate and independent rights and any debt arising under the Finance Documents to a Finance Party from an Obligor shall be a separate and independent debt in respect of which a Finance Party shall be entitled to enforce its rights in accordance with Clause 2.7.3 below. The rights of each Finance Party include any debt owing to that Finance Party under the Finance Documents and, for the avoidance of doubt, any part of an Advance or any other amount owed by an Obligor which relates to a Finance Party's participation in the Facilities or its role under a Finance Document (including any such amount payable to the Agent on its behalf) is a debt owing to that Finance Party by that Obligor. 2.7.3 A Finance Party may, except as specifically provided in the Finance Documents, separately enforce its rights under or in connection with the Finance Documents. 2.8 Parent as agent for Obligors Each Obligor irrevocably authorises and instructs the Parent to give and receive as agent on its behalf all notices (including Requests and Selection Notices) and sign all documents in connection with the Finance Documents on its behalf (including Novation Certificates and novation agreements under Clause 7.5.2 (Changes to Borrowers)) and take such other action as may be necessary or desirable under or in connection with the Finance Documents and confirms that it will be bound by any action taken by the Parent under or in connection with the Finance Documents. 2.9 Actions of Parent as agent for Obligors The respective liabilities of each of the Obligors under the Finance Documents shall not be in any way affected by: 2.9.1 any irregularity (or purported irregularity) in any act done by or any failure (or purported failure) by the Parent; 2.9.2 the Parent acting (or purporting to act) in any respect outside any authority conferred upon it by any Obligor; or 2.9.3 the failure (or purported failure) by or inability (or purported inability) of the Parent to inform any Obligor of receipt by it of any notification under this Agreement. 2.10 Each Borrower acting for its own account Without prejudice to the provisions of Clause 2.8 (Parent as agent for Obligors), each Borrower is acting for its own account and not for the account of any other person. Each Borrower undertakes to notify the Agent without delay in writing, if after the Signing Date a situation arises in which that Borrower acts for the account of another person (other than, in respect of the Parent only, in accordance with the provisions of Clause 2.8 (Parent as agent for Obligors)). 3. PURPOSE 3.1.1 Each Revolving Facility Advance (or if applicable, Term Out Advance) shall be applied in or towards the general corporate purposes of the Group. 3.1.2 Each US$ Swingline Advance will be applied in or towards refinancing short term Borrowings of the Group and providing support for the Group's commercial paper programme(s), provided that a US$ Swingline Advance may not be applied in or towards refinancing another Swingline Advance. 3.1.3 Each Euro Swingline Advance will be applied in or towards refinancing short term Borrowings of the Group and providing support for the Group's commercial paper programme(s), provided that a Euro Swingline Advance may not be applied in or towards refinancing another Swingline Advance. 30 3.1.4 Without affecting the obligations of any Borrower in any way, no Finance Party is bound to monitor or verify the application of the proceeds of any Advance. 4. CONDITIONS PRECEDENT 4.1 Documentary conditions precedent 4.1.1 The obligations of each Finance Party to any Borrower under this Agreement are subject to the conditions precedent that: (A) the Parent has paid to such Finance Party an up-front fee in the amount and on the date agreed in the relevant Fee Letter; and (B) the Agent has notified the Parent and the Banks that it has received all of the documents set out in Part A of Schedule 2 (Conditions Precedent Documents) in form and substance satisfactory to the Agent. The Agent will promptly notify the Parent and the Banks upon such receipt. 4.1.2 Other than to the extent that the Majority Banks notify the Agent in writing to the contrary before the Agent gives the notification described in Clause 4.1.1(B) above, the Banks authorise (but do not require) the Agent to give that notification. The Agent shall not be liable for any damages, costs or losses whatsoever as a result of giving any such notification. 4.2 Further conditions precedent The obligations of each Bank to participate in a Revolving Facility Advance or a Swingline Advance are subject to the further conditions precedent that on the date of the Request for the Advance and on its Utilisation Date: 4.2.1 the representations and warranties in Clause 15 (Representations and Warranties) deemed to be repeated on those dates pursuant to Clause 15.15.3 (Times for making representations and warranties) are correct and will be correct immediately after the disbursement of the Advance; 4.2.2 in the case of a Rollover Advance, no Event of Default is outstanding and, in the case of any other Advance, no Default is outstanding or would result from the disbursement of the Advance; and 4.2.3 the Advance would not cause Clause 2.2 (Overall facility limit) to be contravened. 5. ADVANCES 5.1 Receipt of Requests 5.1.1 A Borrower may borrow Revolving Facility Advances under a Revolving Facility if the Agent receives, not later than 3 p.m. on the third Business Day before the proposed Utilisation Date, or, in the case of a Revolving Facility Advance in Sterling not later than 9.30 a.m. on the proposed Utilisation Date, a duly completed Request. 5.1.2 A Borrower may borrow US$ Swingline Advances if the US$ Swingline Agent receives, not later than 11.00 a.m. (New York City time) on the proposed Utilisation Date, a duly completed Request, copied to the Agent and the Euro Swingline Agent. 5.1.3 A Borrower may borrow Euro Swingline Advances if the Euro Swingline Agent receives, not later than 11.00 a.m. (London time) on the proposed Utilisation Date, a duly completed Request, copied to the Agent and the US$ Swingline Agent. 5.1.4 Each Request is irrevocable. 31 5.2 Completion of Requests for Revolving Facility Advances A Request for Revolving Facility Advances will not be regarded as having been duly completed unless: 5.2.1 it identifies the relevant Borrower and the relevant Revolving Facility; 5.2.2 the Utilisation Date is a Business Day falling on or after the Signing Date and before the earlier of the then applicable Final Maturity Date and, if applicable in relation to Revolving Facility A, the Term Out Date; 5.2.3 only one currency, which must be Sterling or an Optional Currency, is specified for each separate Advance and the Requested Amount for each separate Advance is in a minimum Original Sterling Amount of £25,000,000 (rounded to the nearest convenient 100,000 units in the case of currencies other than Sterling); and 5.2.4 only one Term for each separate Advance is specified, which: (A) does not overrun the relevant Final Maturity Date; (B) in respect of each Term Rate Advance, is a period of one month, three or six months (or such other period as the Agent, acting on the instructions of all the Banks, may previously have agreed for the purposes of such Advance); and (C) in respect of each Compounded Rate Advance is a period of one month, three or six months (or such other period as the Agent, acting on the instructions of all the Banks, may previously have agreed for the purposes of such Advance). 5.3 Completion of Requests for US$ Swingline Advances A Request for US$ Swingline Advances will not be regarded as having been duly completed unless: 5.3.1 it identifies the relevant Borrower; 5.3.2 the Utilisation Date is a New York Business Day falling on or after the Signing Date and before the earlier of the relevant Final Maturity Date and, if applicable, the Term Out Date; 5.3.3 it is specified that the US$ Swingline Advances are to be made in US Dollars under Swingline Facility A; 5.3.4 the Requested Amount is an integral multiple of US$10,000,000 or such other amount as the US$ Swingline Agent and the relevant Borrower may agree; and 5.3.5 only one Term is specified, which: (A) does not overrun the relevant Final Maturity Date; and (B) is a period not exceeding seven days. 5.4 Completion of Requests for Euro Swingline Advances A Request for Euro Swingline Advances will not be regarded as having been duly completed unless: 5.4.1 the Utilisation Date is a Business Day falling on or after the Signing Date and before the relevant Final Maturity Date; 5.4.2 it is specified that the Euro Swingline Advances are to be made in euro under Swingline Facility B; 5.4.3 the Requested Amount is an integral multiple of €10,000,000 or such other amount as the Euro Swingline Agent and the relevant Borrower may agree; and 5.4.4 only one Term is specified, which: 32 (A) does not overrun the relevant Final Maturity Date; and (B) is a period not exceeding seven days. 5.5 Amount of each Bank's Advance The amount of a Bank's Advance will, in the case of a Revolving Facility Advance, be the proportion of the Requested Amount which its relevant Available Commitment under the relevant Revolving Facility bears to the relevant Available Facility on the relevant Utilisation Date and, in the case of a Swingline Advance, the proportion of the Requested Amount which its relevant Available Swingline Commitment under the relevant Swingline Facility bears to the relevant Available Swingline Facility on the relevant Utilisation Date. 5.6 Notification of the Banks The Agent, the US$ Swingline Agent or the Euro Swingline Agent (as the case may be) shall promptly notify each Revolving Facility Bank, US$ Swingline Bank or Euro Swingline Bank (as the case may be) of the details of the requested Advances and the amount of each relevant Bank's Advance. 5.7 Payment of proceeds Subject to the terms of this Agreement, each Bank (or each US$ Swingline Bank or each Euro Swingline Bank, as the case may be) shall make its Advance available to the Agent (or the US$ Swingline Agent in the case of US$ Swingline Advances or the Euro Swingline Agent in the case of Euro Swingline Advances) for the Borrower concerned for value on the relevant Utilisation Date (which in the case of Euro Swingline Advances shall mean by no later than 2.00 p.m.). In the case of any Euro Swingline Advance, the Euro Swingline Agent shall by no later than 2.30 p.m. on the Utilisation Date for such Euro Swingline Advance issue instructions for all amounts actually received by it from the Euro Swingline Banks in respect of that Euro Swingline Advance to be transferred in accordance with the payment instructions set out in the Request relating to that Euro Swingline Advance. 6. REPAYMENT 6.1 Repayment of Revolving Facility Advances 6.1.1 Subject to Clause 6.3 (Repayment of Term Out Advances) below, each Borrower shall repay each Revolving Facility Advance made to it in full on its Term End Date to the Agent for the Banks. No Revolving Facility Advance may be outstanding under a Revolving Facility after the relevant Final Maturity Date. 6.1.2 Without prejudice to each Borrower's obligation under Clause 6.1.1 above, if one or more Revolving Facility Advances are to be made available to a Borrower under a Revolving Facility: (A) on the same day that a maturing Revolving Facility Advance is due to be repaid by that Borrower under the same Revolving Facility; (B) in the same currency as the maturing Revolving Facility Advance; and (C) in whole or in part for the purpose of refinancing the maturing Revolving Facility Advance, the aggregate amount of the new Revolving Facility Advances shall be treated as if applied in or towards repayment of the maturing Revolving Facility Advance so that: (1) if the amount of the maturing Revolving Facility Advance exceeds the aggregate amount of the new Revolving Facility Advances: (a) the relevant Borrower will only be required to pay an amount in cash in the relevant currency equal to that excess; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33 (b) each Bank's participation (if any) in the new Revolving Facility Advances shall be treated as having been made available and applied by the Borrower in or towards repayment of that Bank's participation (if any) in the maturing Revolving Facility Advance and that Bank will not be required to make its participation in the new Revolving Facility Advances available in cash; and (2) if the amount of the maturing Revolving Facility Advance is equal to or less than the aggregate amount of the new Revolving Facility Advances: (a) the relevant Borrower will not be required to make any payment in cash; and (b) each Bank will be required to make its participation in the new Revolving Facility Advances available in cash only to the extent that its participation (if any) in the new Revolving Facility Advances exceeds that Bank's participation (if any) in the maturing Revolving Facility Advance and the remainder of that Bank's participation in the new Revolving Facility Advances shall be treated as having been made available and applied by the Borrower in or towards repayment of that Bank's participation in the maturing Revolving Facility Advance. 6.2 Repayment of Swingline Advances 6.2.1 Subject to Clause 6.2.2 below, each Borrower shall repay each Swingline Advance made to it in full on its Term End Date to the relevant Swingline Agent. No Swingline Advance may be outstanding under a Swingline Facility after the relevant Final Maturity Date. 6.2.2 Each Swingline Advance shall be repaid on its Term End Date in accordance with Clause 6.2.1 above. In the event that a Swingline Advance under Swingline Facility A or Swingline Facility B is not so repaid, each Revolving Facility Bank under the corresponding Revolving Facility will within four Business Days of a demand to that effect from the US$ Swingline Agent or the Euro Swingline Agent (as the case may be) pay to the Agent on behalf of the Swingline Banks who funded such Swingline Advance an amount equal to its Agreed Percentage of the principal of such Swingline Advance and accrued interest (including default interest) thereon to the date of actual payment by such Bank. The relevant Borrower shall forthwith reimburse such Banks (through the Agent) in full for each payment made by such Banks under this Clause 6.2.2. Each amount the relevant Borrower is required to reimburse to the Banks under this Clause 6.2.2 shall be deemed to be an overdue amount (as defined in Clause 8.7 (Default interest)) which fell due for payment by the relevant Borrower on the day on which the payment by the Banks giving rise to the reimbursement obligation was made and shall accrue default interest under Clause 8.7 (Default interest) accordingly. 6.3 Repayment of Term Out Advances Each Borrower which has a Term Out Advance outstanding after the Term Out Date shall repay that Advance to the Agent on the Final Maturity Date for the Term Out Facility. 7. PREPAYMENT AND CANCELLATION 7.1 Voluntary cancellation 7.1.1 The Parent may, by giving not less than three Business Days' prior written notice to the Agent, cancel the whole or any part of an Available Facility (but if in part, in 34 an aggregate minimum amount of £25,000,000). Any cancellation in part shall be applied against the Commitment of each Bank pro rata under that Facility. 7.1.2 Whenever part of the Total Commitments are cancelled (prior to the Term Out Date, in the case of the Total Revolving Facility A Commitments): (A) no US$ Swingline Commitment under Swingline Facility A shall be cancelled unless: (A) the Sterling Amount of the US$ Swingline Total Commitments would exceed the US$ Swingline Total Commitments after such cancellation; or (B) the Sterling Amount of the US$ Swingline Commitment of any US$ Swingline Bank under Swingline Facility A would exceed the Revolving Facility A Commitment after such cancellation. In any such case, the US$ Swingline Total Commitments shall, at the same time as the cancellation of the US$ Swingline Total Commitments takes effect, be cancelled by such amount as is necessary to ensure that after the cancellation of the US$ Swingline Total Commitments, the Sterling Amount of the US$ Swingline Total Commitments does not exceed the US$ Swingline Total Commitments and the Sterling Amount of the US$ Swingline Commitment of each US$ Swingline Bank under Swingline Facility A does not exceed the Revolving Facility A Commitment; and (B) no Euro Swingline Commitment under Swingline Facility B shall be cancelled unless: (A) the Sterling Amount of the Euro Swingline Total Commitments would exceed the Euro Swingline Total Commitments after such cancellation; or (B) the Sterling Amount of the Euro Swingline Commitment of any Euro Swingline Bank under Swingline Facility B would exceed the Revolving Facility B Commitment after such cancellation. In any such case, the Euro Swingline Total Commitments shall, at the same time as the cancellation of the Euro Swingline Total Commitments takes effect, be cancelled by such amount as is necessary to ensure that after the cancellation of the Euro Swingline Total Commitments, the Sterling Amount of the Euro Swingline Total Commitments does not exceed the Euro Swingline Total Commitments and the Sterling Amount of the Euro Swingline Commitment of each Euro Swingline Bank under Swingline Facility B does not exceed the Revolving Facility B Commitment. 7.2 Automatic cancellation of Commitment The Revolving Facility Commitment of each Bank under each Revolving Facility shall be automatically cancelled at the close of business in London on the applicable Final Maturity Date. 7.3 Voluntary prepayment 7.3.1 A Borrower to which a Revolving Facility Advance (or if applicable, Term Out Advance) has been made may, if it gives to the Agent: (A) in the case of a Term Rate Advance, not less than three Business Days' (or such shorter period as the Majority Banks may agree) prior written notice, prepay subject to breakage costs, if any; and (B) in the case of a Compounded Rate Advance, not less than five Business Days (or such shorter period as the Majority Banks may agree) prior written notice, prepay on up to three occasions in each 12-month period beginning on the Signing Date, the whole or any part of the Revolving Facility Advance (or if applicable, Term Out Advance) made to it under this Agreement (but if in part in an aggregate minimum Original Sterling Amount, taking all prepayments made by all the Borrowers on the same day together, of £25,000,000). 35 7.3.2 Any voluntary prepayment under Clause 7.3.1 above will: (A) be applied against Revolving Facility Advances (or if applicable, Term Out Advances) in such proportions as may be specified by the Parent in the notice of prepayment or, if not specified, against all Revolving Facility Advances (and if applicable, Term Out Advances) pro rata (or, if no Revolving Facility Advances are outstanding, against any Swingline Advances pro rata); and (B) be applied against the relevant Advances of the relevant Banks pro rata. 7.3.3 Any voluntary prepayment under Clause 7.3.1 above will be accompanied by all amounts payable under Clause 22.2.3 (Other indemnities) in respect of that prepayment if not made on the Term End Date of the relevant Advance. 7.4 Mandatory Prepayment by Borrowers 7.4.1 If any Borrower (other than the Parent) ceases to be a Subsidiary of the Parent, it shall forthwith prepay all Advances made to it together with all amounts payable by it under this Agreement, and thereupon cease to be a Borrower. 7.4.2 If any person or group of persons acting in concert gains control of the Parent: (A) the Parent shall promptly notify the Agent upon becoming aware of such event; and (B) if the Majority Banks so require, the Agent shall, by not less than 10 Business Days' written notice to the Parent, cancel the Total Commitments and declare all outstanding Advances, together with accrued interest, and all other amounts accrued under the Finance Documents, to be immediately due and payable, whereupon the Total Commitments will be cancelled in full and all such outstanding amounts will become immediately due and payable. For the purpose of this Clause 7.4.2: "control" has the meaning given to it in section 450 of the Corporation Tax Act 2010; and "acting in concert" has the meaning given to it in the City Code on Takeovers and Mergers. 7.5 Changes to Borrowers 7.5.1 Any Borrower in respect of which no Advance is outstanding hereunder (including any other amounts outstanding in relation thereto) may, at the request of the Parent, cease to be a Borrower by entering into a supplemental agreement to this Agreement in such form as the Agent may reasonably require which shall discharge that Borrower's obligations hereunder. 7.5.2 Any Borrower (the "Existing Borrower") may be released from its obligations under this Agreement as a Borrower, provided that another Borrower (the "Substitute Borrower") assumes the obligations in respect thereof of the Existing Borrower and provided further that: (A) any such substitution shall take effect on and from the later of the day upon which the Agent notifies the Parent in writing that it is satisfied with the compliance with the matters set out in paragraphs (C) and (D) below and the date for substitution specified in the relevant notice under paragraph (B) below; (B) notice of the proposed substitution has been delivered by the Parent to the Agent not less than 14 days prior to the proposed substitution; (C) no Event of Default has occurred and is continuing; and (D) the Substitute Borrower enters into a novation agreement with the Existing Borrower, the Parent and the Agent on behalf of the Banks in the 36 form of Part C of Schedule 4 (Forms of Accession Documents) together with such amendments as the Agent may reasonably require. Each Bank authorises the Agent to sign on its behalf any novation agreement entered into in accordance with this Clause 7.5.2. 7.5.3 For the avoidance of doubt, this Clause 7.5 shall not operate to release the Guarantor from its obligations under this Agreement in its capacity as the Guarantor. 7.6 Right of cancellation in relation to a Defaulting Bank 7.6.1 If any Bank becomes a Defaulting Bank, a Borrower may, at any time whilst the Bank continues to be a Defaulting Bank, give the Agent three Business Days' notice of cancellation of each Available Commitment of that Bank. 7.6.2 On the notice referred to in Clause 7.6.1 above becoming effective, each Available Commitment of the Defaulting Bank shall immediately be reduced to zero. 7.6.3 The Agent shall as soon as practicable after receipt of a notice referred to in Clause 7.6.1 above, notify all the Banks. 7.7 Right of prepayment and cancellation If any Borrower is required to pay or is notified by any Bank in writing that it will be required to pay any amount to a Bank under Clause 10 (Taxes) or Clause 12 (Increased Costs), or if circumstances exist such that a Borrower will be required to pay any amount to a Bank under Clause 10 (Taxes), the Parent may, whilst the circumstances giving rise or which will give rise to the requirement continue, serve a notice of prepayment and cancellation on that Bank through the Agent. On the date falling five Business Days after the date of service of the notice: 7.7.1 each Borrower shall prepay all outstanding Advances made to it by that Bank; and 7.7.2 the Bank's Commitment (including its (and its Swingline Affiliates') Swingline Commitments (if any)) shall be permanently cancelled on the date of service of the notice. 7.8 Miscellaneous provisions 7.8.1 Any notice of prepayment and/or cancellation under this Agreement is irrevocable once given. The Agent shall notify the Banks promptly of receipt of any such notice. 7.8.2 All prepayments under this Agreement shall be made together with accrued interest on the amount prepaid and any other amounts due under this Agreement in respect of the prepayment (including, but not limited to, in the case of a prepayment under Clause 7.3.1 (Voluntary prepayment), any amounts payable under Clause 22.2.3 (Other indemnities) if the prepayment is not made on the Term End Date of the relevant Advance). 7.8.3 No prepayment or cancellation is permitted except in accordance with the express terms of this Agreement. 7.8.4 No amount prepaid under Clause 7.4 (Mandatory Prepayment by Borrowers) or 7.7 (Right of prepayment and cancellation) may subsequently be reborrowed. Subject to the terms of this Agreement, any amount prepaid under Clause 7.3 (Voluntary prepayment) in respect of a Revolving Facility or a Swingline Facility may be reborrowed. Subject to Clause 25.10 (Increase), no amount of the Total Commitments (including the Swingline Total Commitments) cancelled under this Agreement may subsequently be reinstated. 7.8.5 No Borrower may reborrow any part of any Term Out Advance which is prepaid.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37 8. INTEREST 8.1 Calculation of interest – Term Rate Advances The rate of interest on each Term Rate Advance for a Term is the percentage rate per annum which is the aggregate of the applicable: 8.1.1 Margin; and 8.1.2 Term Reference Rate. 8.2 Calculation of interest – Compounded Rate Advances 8.2.1 The rate of interest on each Compounded Rate Advance for any day during a Term is the percentage rate per annum which is the aggregate of the applicable: (A) Margin; and (B) Compounded Reference Rate for that day. 8.2.2 If any day during a Term for a Compounded Rate Advance is not an RFR Banking Day, the rate of interest on that Compounded Rate Advance for that day will be the rate applicable to the immediately preceding RFR Banking Day. 8.3 Calculation of the Margin 8.3.1 Subject to the following provisions of this Clause 8.3: (A) in respect of a Revolving Facility Advance under Revolving Facility A or a Term Out Advance, the initial Margin is 0.225 per cent. per annum and thereafter the Margin for the Term of a Revolving Facility Advance under Revolving Facility A or a Term Out Advance will be determined on the Rate Fixing Day for that Term by reference to the table below: Rating (S&P/Moody's) Facility Margin per annum A-/A3 0.175 per cent. BBB+/Baa1 0.225 per cent. BBB/Baa2 0.325 per cent. BBB-/Baa3 or below 0.425 per cent. (B) in respect of an Advance under Revolving Facility B, the initial Margin is 0.275 per cent. per annum and thereafter the Margin for the Term of an Advance under Revolving Facility B will be determined on the Rate Fixing Day for that Term by reference to the table below: Rating (S&P/Moody's) Facility Margin per annum A-/A3 0.20 per cent. BBB+/Baa1 0.275 per cent. BBB/Baa2 0.375 per cent. BBB-/Baa3 or below 0.475 per cent. where, for the purposes of this Clause 8.3: "Rating" means the corporate rating of the Parent assigned by S&P (currently known as the "Corporate Credit Rating") and/or Moody's (currently known as the "Issuer Rating") as at the Rate Fixing Day on which the Margin is being determined. 38 For the avoidance of doubt, if there is a change to the Rating during the Term of a Revolving Facility Advance or a Term Out Advance there shall be no adjustment to the Margin for that Term until the next Rate Fixing Day for that Advance. 8.3.2 If Ratings are confirmed or assigned to the Parent by S&P and Moody's that are not equivalent at any time, then the Margin will be the average of the Margins applicable to such credit ratings. 8.3.3 If only one Rating Agency publishes a Rating for the Parent, the rating assigned by that Rating Agency shall be deemed also to be the rating assigned by the other Rating Agency. 8.3.4 If on the relevant Rate Fixing Day both Rating Agencies have ceased to publish a Rating for the Parent, the Margin for the relevant Advance shall be determined on the basis of a deemed Corporate Credit Rating of BBB- and a deemed Issuer Rating of Baa3 until the date on which a Rating Agency publishes a Rating for the Parent. 8.3.5 For so long as an Event of Default is continuing, the Margin for the relevant Advance shall be determined on the basis of a deemed Corporate Credit Rating of BBB- and a deemed Issuer Rating of Baa3 (and any increase in the Margin pursuant to this Clause 8.3.5 shall take effect immediately following the occurrence of the relevant Event of Default). 8.3.6 The Parent shall notify the Agent promptly of any publicly announced change in its Rating. 8.3.7 In calculating the Margin for any Advance under this Clause 8.3, no account shall be taken of any rating outlook or credit watch action assigned to any Rating by the relevant Rating Agency. 8.4 Interest rate on US$ Swingline Advances The rate of interest on each US$ Swingline Advance during its Term is the rate per annum determined by the US$ Swingline Agent to be the US$ Swingline Rate for each day during its Term. 8.5 Interest rate on Euro Swingline Advances The rate of interest on each Euro Swingline Advance during its Term is the rate per annum determined by the Euro Swingline Agent to be the Euro Swingline Rate for each day during its Term. 8.6 Due dates 8.6.1 Except as otherwise provided in this Agreement, accrued interest on each Advance is payable by the relevant Borrower on each Term End Date, and also, in the case of any Advance with a Term longer than six months, at six monthly intervals after its Utilisation Date (or in the case of a Term Out Advance, the first day of the relevant Term) for so long as the Term is outstanding. 8.6.2 Accrued interest on each Euro Swingline Advance is payable by the relevant Borrower on the day which falls 3 Business Days after the last day of its Term. 8.6.3 A Borrower may select a Term for a Term Out Advance in a Selection Notice (and the conditions in Clause 5.2.4 (Completion of Requests for Revolving Facility Advances) shall also apply to each Selection Notice). 8.6.4 Each Selection Notice for a Term Out Advance is irrevocable and must be delivered to the Agent by the Borrower to which that Term Out Advance was made not later than 11.00 a.m. on the applicable Rate Fixing Day. 8.6.5 If a Borrower fails to deliver a Selection Notice to the Agent in accordance with Clause 8.6.3, the relevant Term will be one month. 39 8.6.6 A Term for a Term Out Advance shall not extend beyond the applicable Final Maturity Date. Each Term for a Term Out Advance shall start on the Term Out Date or on the last day of its preceding Term. 8.6.7 If two or more Terms: (A) relate to Term Out Advances in the same currency made to the same Borrower; and (B) any Term End Dates for such Term Out Advances are the same date, those Term Out Advances will, unless that Borrower specifies to the contrary in the Selection Notice for the next Term, be consolidated into, and treated as, a single Term Out Advance on that Term End Date. 8.7 Default interest 8.7.1 If an Obligor fails to pay any amount payable by it under this Agreement on its due date, interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate which, subject to Clause 8.7.2 below, is one per cent. per annum higher than the rate which would have been payable if the overdue amount had, during the period of non-payment, constituted an Advance in the currency of the overdue amount for successive Terms, each of a duration selected by the Agent, or as the case may be, the relevant Swingline Agent, (acting reasonably). Any interest accruing under this Clause 8.7 shall be immediately payable by the Obligor on demand by the Agent. 8.7.2 If any overdue amount consists of all or part of a Term Rate Advance and which became due on a day which was not the last day of a Term relating to that Advance: (A) the first Term for that overdue amount shall have a duration equal to the unexpired portion of the current Term relating to that Advance; and (B) the rate of interest applying to the overdue amount during that first Term shall be one per cent. per annum higher than the rate which would have applied if the overdue amount had not become due. 8.7.3 Default interest (if unpaid) arising on an overdue amount will be compounded with the overdue amount at the end of each Term applicable to that overdue amount but will remain immediately due and payable. 8.8 Notifications 8.8.1 The Agent shall promptly notify the relevant Banks and the relevant Borrower of the determination of a rate of interest relating to a Term Rate Advance. 8.8.2 The relevant Swingline Agent shall promptly notify the relevant Banks and the relevant Borrower of the determination of a rate of interest relating to a Swingline Advance. 8.8.3 The Agent shall notify the Banks and the relevant Borrower of Optional Currency amounts (and the applicable Agent's Spot Rate of Exchange) promptly after they are ascertained. 8.8.4 The Agent shall promptly upon a Compounded Rate Interest Payment being determinable notify: (A) the relevant Borrower of that Compounded Rate Interest Payment; (B) each relevant Bank of the proportion of that Compounded Rate Interest Payment which relates to that Bank's participation in the relevant Compounded Rate Advance; and (C) the relevant Banks and the relevant Borrower of: 40 (1) each applicable rate of interest relating to the determination of that Compounded Rate Interest Payment; and (2) to the extent it is then determinable, the Market Disruption Rate (if any) relating to the relevant Compounded Rate Advance. This Clause 8.8.4 shall not apply to any Compounded Rate Interest Payment determined pursuant to Clause 11.8 (Cost of Funds). 8.8.5 The Agent or, as applicable, the Swingline Agent, shall promptly notify the relevant Borrower of each Funding Rate relating to an Advance. 8.8.6 The Agent or, as applicable, the Swingline Agent, shall promptly notify the relevant Banks and the relevant Borrower of the determination of a rate of interest relating to a Compounded Rate Advance to which Clause 11.8 (Cost of Funds) applies. 8.8.7 This Clause 8.8 shall not require the Agent or, as applicable, the Swingline Agent, to make any notification to any Party on a day which is not a Business Day. 9. PAYMENTS 9.1 Place of Payment All payments by an Obligor or a Bank under this Agreement shall be made to the Agent or, if the payment relates to a Swingline Facility, by a Bank to the relevant Swingline Agent, in each case to its account at such office or bank in the principal financial centre of the country of the currency concerned (or, in the case of a payment in euro, in the financial centre of the country selected by the Agent) as it may notify to the Obligor or Bank for this purpose. 9.2 Funds Payments under this Agreement to an Administrative Party shall be made for value on the due date at such times and in such funds as such Administrative Party may specify to the Party concerned as being customary at the time for the settlement of transactions in the relevant currency in the place for payment. 9.3 Distribution 9.3.1 Each payment received by an Administrative Party under this Agreement for another Party shall, subject to Clause 9.3.2 below and Clause 9.9 (Clawback) below, be made available by such Administrative Party to that Party by payment (on the date and in the currency and funds of receipt) to its account with such bank in the principal financial centre of the country of the relevant currency (or, in the case of a payment in euro, to its account in the financial centre of a country selected by it) as it may notify to the relevant Administrative Party for this purpose by not less than five Business Days' prior notice. 9.3.2 An Administrative Party may apply any amount received by it for an Obligor in or towards payment (on the date and in the currency and funds of receipt) of any amount due from an Obligor under this Agreement or in or towards the purchase of any amount of any currency to be so applied. 9.4 Currency 9.4.1 A repayment or prepayment of an Advance is payable in the currency in which the Advance is denominated. 9.4.2 Interest is payable in the currency in which the relevant amount in respect of which it is payable is denominated. 9.4.3 Amounts payable in respect of costs, expenses, taxes and the like are payable in the currency in which they are incurred.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41 9.4.4 Any other amount payable under this Agreement is, except as otherwise provided in this Agreement, payable in Sterling. 9.5 Set-off and counterclaim All payments made by an Obligor under this Agreement shall be made without set-off or counterclaim. 9.6 Non-Business Days 9.6.1 Other than where Clause 9.6.2 below applies, if a Term would otherwise end on a day which is not a Business Day, that Term will instead end on the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not). 9.6.2 If the Advance is a Compounded Rate Advance and there are rules specified as "Business Day Conventions" in the applicable Reference Rate Terms, those rules shall apply to each Term for that Advance. 9.7 Impaired Agent 9.7.1 If, at any time, an Administrative Party becomes an Impaired Agent and a Borrower or a Bank is required to make a payment under the Finance Documents to that Administrative Party in accordance with Clause 9.1 (Place of Payment), that Borrower or Bank may, subject to Clause 9.7.2 below, instead either pay that amount: (A) direct to the required recipient; or (B) to an interest-bearing account held with an Acceptable Bank and in relation to which no Insolvency Event has occurred and is continuing, in the name of the relevant Borrower or the Bank making the payment and designated as a trust account for the benefit of the Party or Parties beneficially entitled to that payment under the Finance Documents. In each case, such payments must be made on the due date for payment under the Finance Documents. 9.7.2 If a Bank has become and continues to be a Defaulting Bank and a payment is required to be made by a Borrower or a Bank in accordance with Clause 9.7.1, that Obligor or Bank will make such payment in accordance with Clause 9.7.1(B). 9.7.3 A Party which is required to make a payment in accordance with Clause 9.7.1 shall notify the required recipient of the account into which the payment is made. 9.7.4 All interest accrued on the amounts standing to the credit of a trust account shall be for the benefit of the beneficiaries of that trust account pro rata to their respective entitlements. 9.7.5 A Party which has made a payment in accordance with this Clause 9.7 shall be discharged of the relevant payment obligation under the Finance Documents and shall not take any credit risk with respect to the amounts standing to the credit of the trust account. 9.7.6 Promptly upon the appointment of a successor Administrative Party to an Impaired Agent in accordance with Clause 18.16 (Resignation of an Administrative Party), each Party which has made a payment to a trust account in accordance with this Clause 9.7 shall give all requisite instructions to the bank with whom the trust account is held to transfer the amount (together with any accrued interest) to the successor Administrative Party for distribution in accordance with Clause 9.3 (Distribution). 9.8 Partial payments 9.8.1 If an Administrative Party receives a payment insufficient to discharge all the amounts then due and payable by an Obligor under this Agreement, such 42 Administrative Party shall apply that payment towards the obligations of the Obligors under this Agreement in the following order: (A) first, in or towards payment pro rata of any unpaid costs, fees and expenses of the Administrative Parties under this Agreement; (B) secondly, in or towards payment pro rata of any accrued fees due but unpaid under Clause 19 (Fees); (C) thirdly, in or towards payment pro rata of any interest due but unpaid under this Agreement; (D) fourthly, in or towards payment pro rata of any principal due but unpaid under this Agreement; and (E) fifthly, in or towards payment pro rata of any other sum due but unpaid under this Agreement. 9.8.2 The Administrative Parties, shall, if so directed by all the Banks, vary the order set out in Clause 9.8.1 above (other than Clause 9.8.1(A)). The Administrative Parties shall notify the Parent of any such variation. 9.8.3 Clauses 9.8.1 and 9.8.2 above shall override any appropriation made by any Obligor. 9.9 Clawback 9.9.1 Where a sum is to be paid to an Administrative Party under the Finance Documents for another Party, that Administrative Party is not obliged to pay that sum to that other Party (or to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum. 9.9.2 If an Administrative Party pays an amount to another Party and it proves to be the case that that Administrative Party had not actually received that amount, then the Party to whom that amount (or the proceeds of any related exchange contract) was paid by the Administrative Party shall on demand refund the same to the Administrative Party together with interest on that amount from the date of payment to the date of receipt by the Administrative Party, calculated by the Administrative Party to reflect its costs of funds. 9.10 Disruption to Payment Systems etc If either the Agent determines (in its discretion) that a Disruption Event has occurred or the Agent is notified by the Parent that a Disruption Event has occurred: 9.10.1 the Agent shall consult with the Parent and shall use reasonable endeavours to agree with the Parent such changes to the operation or administration of the Facilities as the Agent may reasonably deem necessary in the circumstances; 9.10.2 the Agent may consult with the Finance Parties in relation to any changes mentioned in Clause 9.10.1 above but shall not be obliged to do so if, in its opinion, it is not practicable to do so in the circumstances; 9.10.3 any such changes agreed upon by the Agent and the Parent shall (whether or not it is finally determined that a Disruption Event has occurred) be binding upon the Parties as an amendment to (or, as the case may be, waiver of) the terms of the Finance Documents notwithstanding the provisions of Clause 24 (Amendments and Waivers); 9.10.4 the Agent shall not be liable for any damages, costs or losses whatsoever arising as a result of its taking, or failing to take, any actions pursuant to or in connection with this Clause 9.10 provided that any decision to act, or not to act, was taken in good faith; and 43 9.10.5 the Agent shall notify the Finance Parties of all changes agreed pursuant to Clause 9.10.4 above. 10. TAXES 10.1 Gross-up All payments by an Obligor under the Finance Documents shall be made free and clear of and without deduction for or on account of any taxes, except to the extent that the Obligor is required by law to make payment subject to any taxes or such deduction is a FATCA Deduction. Subject to Clauses 10.3 (Qualifying Banks) and 10.7 (US Borrower), if any tax or amounts in respect of tax (other than a FATCA Deduction) must be deducted from any amounts payable or paid by an Obligor, or paid or payable by the Agent or a Swingline Agent (in their capacity as agent) (as the case may be) to a Finance Party under the Finance Documents, the Obligor shall pay such additional amounts as may be necessary to ensure that the relevant Finance Party receives a net amount equal to the full amount which it would have received had payment not been made subject to tax. The Parent shall upon becoming aware that an Obligor must make such deduction (or that there is any change in the rate or the basis of such a deduction) notify the Agent accordingly. Similarly, a Bank shall notify the Agent on becoming so aware in respect of a payment payable to that Bank (and if the Agent receives such notification it shall notify the Parent). 10.2 Tax receipts All taxes required by law to be deducted or withheld by an Obligor from any amounts paid or payable under the Finance Documents shall be paid by the relevant Obligor when due and the Obligor shall, within 15 days of the payment being made, deliver to the Agent for the relevant Bank evidence satisfactory to that Bank (including any relevant tax receipts) that the payment has been duly remitted to the appropriate authority. 10.3 Qualifying Banks If: 10.3.1 on the Signing Date, any Bank which is a Party on the Signing Date is not a Qualifying Bank; or 10.3.2 after the Signing Date, a Bank ceases to be a Qualifying Bank, other than as a result of a Change of Tax Law; or 10.3.3 on the date of any assignment, transfer or novation under Clause 25 (Changes to the Parties) a New Bank (as such term is defined in that Clause) is not a Qualifying Bank, then no UK Resident Borrower or Dutch Borrower shall be liable to pay to that Bank under Clause 10.1 (Gross-up) any amount in respect of taxes levied or imposed by the UK or the Netherlands or any taxing authority of or in the UK or the Netherlands in excess of the amount (if any) it would have been obliged to pay if that Bank had been, or had not ceased to be, a Qualifying Bank. 10.4 Tax Credit 10.4.1 If an Obligor makes a payment pursuant to Clause 10.1 (Gross-up) for the account of any Finance Party and such Finance Party has received or been granted a credit against, or relief or remission or repayment of, any tax paid or payable by it (a "Tax Credit") which is attributable to that payment or the corresponding payment under the Finance Document such Finance Party shall, to the extent that it can do so without prejudice to the retention of the amount of such credit, relief, remission or repayment, pay to the Obligor concerned such amount as the Finance Party shall have reasonably determined to be attributable to such payments and which will leave the Finance Party (after such payment) in no better or worse position than it would have been if the Obligor concerned had not been required to make any deduction or withholding. 44 10.4.2 Nothing in this Clause 10.4 shall interfere with the right of a Finance Party to arrange its tax affairs in whatever manner it thinks fit and without limiting the foregoing no Finance Party shall be under any obligation to claim a Tax Credit or to claim a Tax Credit in priority to any other claims, relief, credit or deduction available to it. No Finance Party shall be obliged to disclose any information relating to its tax affairs or any computations in respect thereof. Unless it would in a Bank's reasonable judgement be prejudicial to its interests, such Bank shall seek any Tax Credit available to it consequent upon any deductions or withholdings for tax being made from any payment to it under Clause 10.1 (Gross-up). 10.5 Borrower DTTP Filing 10.5.1 If a Bank holds a passport under the HMRC DT Treaty Passport scheme and wishes that scheme to apply to this Agreement, it shall, or the Agent shall (if notified by the Bank) on its behalf, notify the Parent in accordance with the provisions of Clause 32 (Notices) that the relevant Bank wishes the scheme to apply and provide that Bank's scheme reference number and jurisdiction of tax residence within five Business Days of becoming a Party to this Agreement. 10.5.2 Each Bank which wishes the HMRC DT Treaty Passport scheme to apply to this Agreement shall promptly provide such further information (directly to an Obligor or via the Agent) as an Obligor may request in order to enable the Obligor to make a Borrower DTTP Filing. 10.5.3 If a Borrower had received authority from HM Revenue & Customs to make payments to that Bank without deduction for or on account of tax as a result of a Borrower DTTP Filing, but as a result of: (i) a withdrawal or expiry of that authority; or (ii) a withdrawal or cessation of the DTTP passport scheme due to any change in law or change in practice of HM Revenue & Customs, it is no longer possible for that Borrower to make payments to the Bank without deduction for or on account of tax by virtue of that authority, and the Borrower has notified that Bank in writing, that Bank and the Borrower shall co-operate in completing any additional procedural formalities necessary for that Borrower to obtain authorisation to make payment without deduction for or on account of tax. 10.6 FATCA 10.6.1 Each Party may make any FATCA Deduction and any payment required in connection with that FATCA Deduction, and no Party shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction. 10.6.2 Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction) in respect of an Advance made to an Obligor that is not a US Person, notify the Party to whom it is making payment and, in addition, shall notify the Parent, the Agent and the other Finance Parties. 10.6.3 Subject to Clause 10.6.4 below, each Party shall, within ten Business Days of a reasonable request by another Party, confirm to that other Party whether it is entitled to receive payments under the Finance Documents free from any deduction or withholding required by FATCA (hereafter referred to as "FATCA Exempt") or is not so entitled, and shall supply to that other Party such forms, documentation and other information relating to its status under FATCA (including information required under the US Treasury Regulations or other official guidance including intergovernmental agreements) as that other Party reasonably requests and is necessary for the purposes of that other Party's compliance with FATCA or any other exchange of information regime (provided that the necessity of such request is reasonably evidenced to the satisfaction of the Party to whom the request is made (acting reasonably)). If a Party confirms to another Party

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45 pursuant to this Clause 10.6.3 that it is FATCA Exempt and it subsequently becomes aware that it is not, or has ceased to be FATCA Exempt, that Party shall promptly notify that other Party. 10.6.4 Clause 10.6.3 above shall not oblige a Finance Party to do anything which would or might in its reasonable opinion constitute a breach of any law or regulation, any fiduciary duty, or any duty of confidentiality. 10.6.5 If a Finance Party fails to confirm its status or to supply forms, documentation or other information requested in accordance with Clause 10.6.3 above (including, for the avoidance of doubt, where Clause 10.6.4 above applies), then if that Finance Party failed to confirm whether it is (and/or remains) FATCA Exempt then such Finance Party shall be treated for the purposes of this Agreement as if it is not FATCA Exempt until such time as the Finance Party provides the requested confirmation, forms, documentation or other information. 10.7 US Borrower 10.7.1 Without prejudice to the generality of the foregoing, any Finance Party that is entitled to an exemption from or reduction of withholding tax with respect to payments made under any Finance Document shall deliver to the Agent or the relevant Obligor, at the time or times reasonably requested by the Agent or any Obligor, such properly completed and executed documentation reasonably requested by the Agent or such Obligor as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Finance Party, if reasonably requested by the Agent or any Obligor, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Agent or such Obligor as will enable the Agent or such Obligor to determine whether or not such Finance Party is subject to backup withholding or information reporting requirements. This Clause 10.7.1 shall not require any Finance Party to provide to the Agent or any Obligor any documentation if it would result in a breach of any applicable law or regulation, any fiduciary duty or any duty of confidentiality (other than any such documentation required to be provided under Clause 10.7.2 or Clause 10.7.3 below). Any taxes attributable to a Finance Party's failure to comply with this Clause 10.7.1 shall be considered excluded from the gross-up provided in Clause 10.1 (Gross-up). 10.7.2 Without limitation to the generality of the foregoing, each Finance Party that is a US Person shall: (A) on or prior to the Signing Date (or, if it becomes a Finance Party after such date, on the date it becomes a Finance Party); or (B) otherwise, from time to time thereafter as reasonably requested by the Agent or any Obligor (but only so long as such Finance Party is lawfully able to do so), provide the Agent and the relevant Obligor with one copy of a properly completed and duly executed Internal Revenue Service Form W-9 (or any successor or other form prescribed by the Internal Revenue Service) certifying that such Finance Party is a US Person and is not subject to US backup withholding on payments made by an Obligor that is a US Person to such Finance Party under any Finance Document (and the Agent shall promptly forward that Form W-9 to the relevant Obligor, without any responsibility for the Agent to check the accuracy of the same). 10.7.3 Without limitation to the generality of the foregoing, each Finance Party that is not a US Person shall: (i) on or prior to the Signing Date (or, if it becomes a Finance Party after such date, on the date it becomes a Finance Party); or (ii) otherwise, from time to time thereafter as reasonably requested by the Agent or any Obligor (but only so long as such Finance Party is lawfully able to do so): 46 (A) in the case of a Finance Party claiming the benefits of an exemption from or a reduction in US federal withholding tax pursuant to a double taxation agreement between the United States and the jurisdiction of which such Finance Party is or is treated as a resident, provide the Agent and the relevant Obligor with one copy of a properly completed and duly executed Internal Revenue Service Form W-8BEN or W-8BEN-E, as applicable (or any successor or other form prescribed by the Internal Revenue Service), certifying that such Finance Party is exempt from or entitled to a reduced rate of US federal withholding tax under an applicable double taxation agreement or treaty on payments made by an Obligor that is a US Person to such Finance Party under any Finance Document; (B) in the case of a Finance Party claiming the benefits of an exemption from US federal withholding tax because payments otherwise subject to such withholding tax made by an Obligor that is a US Person are effectively connected with such Finance Party's conduct of a trade or business within the United States, provide the Agent and the relevant Obligor with one copy of a properly completed and duly executed Internal Revenue Service Form W-8ECI (or any successor or other form prescribed by the Internal Revenue Service) certifying that such payments are effectively connected with the conduct of a trade or business within the United States; (C) in the case of a Finance Party claiming the benefits of the exemption from US federal withholding tax pursuant to Section 881(c) of the Code with respect to payments of "portfolio interest" made by an Obligor that is a US Person to such Finance Party under any Finance Document, provide the Agent and the relevant Obligor with: (1) a certificate to the effect that such Finance Party is: (I) not a "bank" (within the meaning of Section 881(c)(3)(A) of the Code); (II) not a 10-percent shareholder of any Obligor (within the meaning of Section 881(c)(3)(B) of the Code); and (III) not a controlled foreign corporation related to any Obligor (as such term is described in Section 881(c)(3)(C) of the Code); and (2) one copy of a properly completed and duly executed Internal Revenue Service Form W-8BEN or W-8BEN-E, as applicable (or any successor or other form prescribed by the Internal Revenue Service), certifying that such Finance Party is not a US Person; or (D) in the case of a Finance Party that is a foreign intermediary or foreign flow-through entity for US federal income tax purposes, provide the Agent and the relevant Obligor with one copy of a properly completed and duly executed Internal Revenue Service Form W-8IMY (or any successor or other form prescribed by the Internal Revenue Service) as a basis for claiming an exemption from or a reduction in US federal withholding tax on payments made by the relevant Obligor that is a US Person to such Finance Party under any Finance Document, together with any supplementary information such Finance Party is required to transmit with such form and, in the case of a nonqualified intermediary that is a Finance Party or a non-withholding Finance Party that is a foreign flow- through entity, with respect to each beneficiary or member of such Finance Party, one copy of the forms or certificates described in Clause 10.7.3(A), (B) or (C) above, as applicable, and, in each case, the Agent shall promptly forward the relevant form to the relevant Obligor, without any responsibility for the Agent to check the accuracy of the same. 47 10.7.4 If a Finance Party fails to provide the Agent or the relevant Obligor with the appropriate Internal Revenue Service form or, if applicable, the certificate, each as described above and each being properly completed and duly executed, or to update them as requested (other than if the failure to furnish such form or certificate is due to a change in law, or in the interpretation or application thereof, occurring after the date on which the form or certificate originally was required to be provided or if such form, certificate or other document otherwise is not required under Clause 10.7.1, 10.7.2 or 10.7.3 above), US backup withholding tax and US federal withholding tax, in each case, imposed on any amount paid by (or on account of) an Obligor that is a US Person under any Finance Document shall be considered excluded from the gross-up provided in Clause 10.1 (Gross- up) by reason of such failure unless and until such Finance Party provides the appropriate Internal Revenue Service form or certificate that is properly completed and duly executed establishing: (i) an exemption from US backup withholding tax; and (ii) a complete exemption from, or a reduction of, US federal withholding tax on such amount, whereupon US federal withholding tax at such reduced rate only (to the extent a complete exemption is not available to such Finance Party) shall be considered excluded from such gross-up for periods governed by such form and certificate. If any Internal Revenue Service form provided by a Finance Party pursuant to this Clause 10.7.4 at the time such Finance Party first becomes a Finance Party hereunder, or when it first provides such form, indicates a US federal withholding tax rate in excess of zero in respect of any amount paid by (or an account of) the relevant Obligor that is a US Person to such Finance Party under any Finance Document, US federal withholding tax imposed on such amount at such rate shall be considered excluded from the gross-up provided in Clause 10.1 (Gross-up) unless and until such Finance Party provides the appropriate form certifying that a lesser rate applies, whereupon US federal withholding tax at the lesser rate only shall be considered excluded from the gross-up for periods governed by such form; provided, however, that if at the date a New Bank becomes a party to this Agreement or any other Finance Document, the applicable transferor Existing Bank was entitled to payments under Clause 10.1 (Gross-up) in respect of US federal withholding tax in connection with any amount paid at such date, then, to that extent, the payments under Clause 10.1 (Gross-up) shall include an amount of US federal withholding tax applicable with respect to such transferor Existing Bank on such date. 10.7.5 On or prior to the Signing Date (and from time to time thereafter as reasonably requested by any Obligor), the Agent shall provide to any Obligor that is a US Person a properly completed and duly executed Internal Revenue Service Form W-9 or an appropriate W-8 (as applicable); provided that, the Agent shall not be required to assume primary US federal income tax withholding or reporting responsibility in respect of any obligations under this Agreement. 11. CHANGES TO THE CALCULATION OF INTEREST 11.1 Interest calculation if no Primary Term Rate 11.1.1 Interpolated Primary Term Rate: If no Primary Term Rate is available for the Term of a Term Rate Advance, the applicable Term Reference Rate shall be the Interpolated Primary Term Rate for a period equal in length to the Term of that Advance. 11.1.2 Shortened Term: If Clause 11.1.1 above applies but it is not possible to calculate the Interpolated Primary Term Rate, the Term of the Advance shall (if it is longer than the applicable Fallback Interest Period) be shortened to the applicable 48 Fallback Interest Period and the applicable Term Reference Rate shall be determined pursuant to the definition of "Term Reference Rate". 11.1.3 Shortened Term and Historic Primary Term Rate: If Clause 11.1.2 above applies but no Primary Term Rate is available for the Term of that Advance and it is not possible to calculate the Interpolated Primary Term Rate, the applicable Term Reference Rate shall be the Historic Primary Term Rate for that Advance. 11.1.4 Shortened Term and Interpolated Historic Primary Term Rate: If Clause 11.1.3 above applies but no Historic Primary Term Rate is available for the Term of the Advance, the applicable Term Reference Rate shall be the Interpolated Historic Primary Term Rate for a period equal in length to the Term of that Advance. 11.1.5 Fixed Central Bank Rate or cost of funds: If Clause 11.1.4 above applies but it is not possible to calculate the Interpolated Historic Primary Term Rate, the Term of the Advance shall, if it has been shortened pursuant to Clause 11.1.2 above, revert to its previous length and the applicable Term Reference Rate shall be: (A) the percentage rate per annum which is the aggregate of: (1) the Central Bank Rate for the Quotation Day; and (2) any applicable Central Bank Rate Adjustment; or (B) if the Central Bank Rate for the Quotation Day is not available, the percentage rate per annum which is the aggregate of: (1) the most recent Central Bank Rate for a day which is no more than three days before the Quotation Day; and (2) any applicable Central Bank Rate Adjustment. In this Clause 11.1.5: "Central Bank Rate" means the rate for the marginal lending facility of the European Central Bank, as published by the European Central Bank from time to time. "Central Bank Rate Adjustment" means, in relation to a Term Rate Loan (the Applicable Term Rate Loan) and the Central Bank Rate for a day, the 20 per cent. trimmed arithmetic mean (calculated by the Agent, or by any other Finance Party which agrees to do so in place of the Agent) of the Central Bank Rate Spreads for the five most immediately preceding TARGET Days (each a Reference Day) for which the Relevant EURIBOR is available or can be calculated (as the case may be) and for which the Central Bank Rate is available; where: "Central Bank Rate Spread" means, in relation to a Reference Day, the difference (expressed as a percentage rate per annum) calculated by the Agent (or by any other Finance Party which agrees to do so in place of the Agent) between: (A) the Relevant EURIBOR for that Reference Day; and (B) the Central Bank Rate for that Reference Day; "Relevant EURIBOR" for a Reference Day means:

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49 (A) the Primary Term Rate as of 11:00 a.m. (Brussels time) on that Reference Day for a period equal in length to the Term of the Applicable Term Rate Loan; or (B) if, as at the date of this Agreement, no Primary Term Rate for a period equal in length to that Term was customarily published the Primary Term Rate (as of 11:00 a.m. (Brussels time) on that Reference Day) for the shortest period (for which Primary Term Rate is available and for which Primary Term Rate was customarily published as at the date of this Agreement) which exceeds that Term. 11.1.6 If Clause 11.1.5 above applies but there is no applicable Central Bank Rate then there shall be no Primary Term Rate for that Advance and Clause 11.8 (Cost of Funds) shall apply to that Advance for that Term. 11.2 Interest calculation if no RFR or Central Bank Rate 11.2.1 If: (A) there is no applicable RFR or Central Bank Rate for the purposes of calculating the Daily Non-Cumulative Compounded RFR Rate for an RFR Banking Day during a Term for a Compounded Rate Advance; and (B) "Cost of funds will apply as a fallback" is specified in the Reference Rate Terms for that Advance, Clause 11.8 (Cost of Funds) shall apply to that Advance for that Term. 11.3 Market disruption Notwithstanding anything to the contrary herein contained: 11.3.1 in the case of a Term Rate Advance, if and each time that prior to or on a Utilisation Date relative to a Term Rate Advance to be made, the Agent is notified by Banks whose Commitments represent 25 per cent or more of the Total Commitments that by reason of circumstances affecting the Relevant Market, adequate and fair means do not exist for ascertaining the Primary Term Rate applicable to such Advance during its Term the Primary Term Rate does not adequately represent the cost of funding to the Banks, and 11.3.2 in the case of a Compounded Rate Advance, if before the Reporting Time the Agent receives notifications from a Bank or Banks whose participations in that Advance exceed 662/3 per cent. of that Advance that its cost of funds relating to its participation in that Advance would be in excess of the Market Disruption Rate, and the Agent shall promptly give written notice of such circumstance or notification to the Parent and to each of the Banks. 11.4 Alternative Rates 11.4.1 Term Rate Advances If the Agent gives a notice under Clause 11.3.1 (Market disruption): (A) the Parent and the Banks may (through the Agent) agree that the Term Rate Advance concerned shall not be borrowed; or (B) in the absence of such agreement: (1) the Term of the Term Rate Advance concerned shall be one month; (2) in the case of Clause 11.3.1 (Market disruption), the Term Rate Advance shall be denominated in Sterling in an amount equal to 50 the Original Sterling Amount of the Term Rate Advance concerned; and (3) the rate of interest applicable to such Term Rate Advance shall be the applicable Margin plus the rate per annum notified by each Bank concerned to the Agent before the last day of such Term to be that which expresses as a percentage rate per annum the cost to such Bank of funding such Term Rate Advance from whatever sources it may reasonably select. 11.4.2 Compounded Rate Advances In the case of a Compounded Rate Advance, if: (A) a Market Disruption Rate is specified in the Compounded Rate Terms; and (B) before the Reporting Time, the Agent gives a notice under Clause 11.3 (Market disruption), then Clause 11.8 (Cost of Funds) shall apply to that Compounded Rate Advance for the relevant Term. 11.5 Non-availability of currency If any Bank notifies the Agent before 10.00 a.m. (London time) on the Business Day prior to the proposed Utilisation Date of an Advance to be denominated in an Optional Currency that it is unable for any reason to fund its participation in such Advance in the Optional Currency concerned, the Agent shall notify the Parent and such Bank shall make its participation in the Advance available in Sterling for the period in question. 11.6 Change in circumstances If before 9.00 a.m. (London time) on the proposed Utilisation Date in respect of an Advance which is to be denominated in an Optional Currency, there occurs any change in national or international financial, political or economic conditions, currency availability, currency exchange rates or exchange controls, which in the opinion of the Agent renders the making of the Advance in such currency impracticable: 11.6.1 the Agent shall give notice to each of the Banks and the Parent to that effect as soon as practicable but in any event before 11.00 a.m. (London time) on the proposed Utilisation Date; 11.6.2 unless the Parent and the Banks agree otherwise, the Advance shall be made in Sterling and the Rate Fixing Day for the Term of the Advance shall be the Utilisation Date; and 11.6.3 the relevant Borrower shall pay to the Agent on behalf of the Bank any amount claimed in accordance with Clause 22.2 (Other indemnities). 11.7 Change in currency 11.7.1 If more than one currency or currency unit are at the same time recognised by the central bank of any country as the lawful currency of that country, then: (A) any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, the currency of that country shall be translated into, or paid in, the currency or currency unit of that country designated by the Agent; and (B) any translation from one currency or currency unit to another shall be at the official rate of exchange recognised by the central bank for the conversion of that currency or currency unit into the other, rounded up or down by the Agent acting reasonably. 11.7.2 If any change in any currency of a country occurs, this Agreement will be amended to the extent the Agent specifies to be necessary to reflect the change 51 in the currency and to put the Finance Parties in the same position, so far as possible, that they would have been in if no change in currency had occurred. 11.8 Cost of Funds 11.8.1 If this Clause 11.8 applies to an Advance for a Term, neither Clause 11.1 (Interest calculation if no Primary Term Rate) nor Clause 8.2 (Calculation of interest – Compounded Rate Advances) shall apply to that Advance for that Term and the rate of interest on each Bank's share of that Advance for the relevant Term shall be the percentage rate per annum which is the sum of: (A) the applicable Margin; and (B) the weighted average of the rates notified to the Agent by each Bank as soon as practicable and in any event by the Reporting Time for that Advance, to be that which expresses as a percentage rate per annum its cost of funds relating to its participation in that Advance. 11.8.2 If this Clause 11.8 applies and the Agent or the Parent so requires, the Agent and the Parent shall enter into negotiations (for a period of not more than thirty days) with a view to agreeing a substitute basis for determining the rate of interest. 11.8.3 Any alternative basis agreed pursuant to Clause 11.8.2 above shall, with the prior consent of all the Banks and the Parent, be binding on all Parties. 11.8.4 If this Clause 11.8 applies pursuant to Clause 11.3 (Market disruption) and: (A) a Bank's Funding Rate is less than the Market Disruption Rate; or (B) a Bank does not notify a rate to the Agent by the Reporting Time, that Bank's cost of funds relating to its participation in that Advance for that Term shall be deemed, for the purposes of Clause 11.8.1 above, to be the Market Disruption Rate for that Advance. 11.8.5 Subject to Clause 11.8.4 above, if this Clause 11.8 applies, but any Bank does not notify a rate to the Agent by the Reporting Time for the relevant Advance, the rate of interest shall be calculated on the basis of the rates notified by the remaining Banks and the Agent shall, as soon as is practicable, notify the Parent. 12. INCREASED COSTS 12.1 Increased costs 12.1.1 Subject to Clause 12.3 (Exceptions), the Parent shall forthwith on demand by a Finance Party pay that Finance Party the amount of any increased cost incurred by it or any of its holding companies as a result of any change in or change in the interpretation of or introduction of any law or regulation (including any relating to taxation or reserve asset, special deposit, cash ratio, liquidity or capital adequacy requirements or any other form of banking or monetary control introduced by any central bank or other competent authority), or reduce or repay that Finance Party's commitments or outstandings without penalty. 12.1.2 In this Agreement, "increased cost" means: (A) an additional cost incurred by a Finance Party or any of its holding companies as a result of it performing, maintaining or funding its obligations under, this Agreement; or (B) that portion of an additional cost incurred by a Finance Party or any of its holding companies in making, funding or maintaining all or any advances comprised in a class of advances formed by or including the Advances made or to be made by it under this Agreement as is attributable to it making, funding or maintaining its Advances; or 52 (C) a reduction in any amount payable to a Finance Party or the effective return to a Finance Party under this Agreement or on its capital (or the capital of any of its holding companies); or (D) the amount of any payment made by a Finance Party, or the amount of interest or other return foregone by a Finance Party, calculated by reference to any amount received or receivable by a Finance Party from any other Party under this Agreement. 12.2 Increased costs claim 12.2.1 A Finance Party intending to make a claim pursuant to Clause 12.1 (Increased costs) shall notify the Agent of the event giving rise to the claim, following which the Agent shall promptly notify the Parent. 12.2.2 Each Finance Party shall, as soon as practicable after a demand by the Agent or the Parent, provide a certificate confirming the amount of its increased costs, detailing the calculation of the claim and confirming that it has considered whether there are any reasonable steps available to it to mitigate the circumstances of such claim in accordance with Clause 13.2 (Mitigation) and there are no such steps available to it. 12.3 Exceptions Clause 12.1 (Increased costs) does not apply to any increased cost: 12.3.1 attributable to any tax or amounts in respect of tax which must be deducted from any amounts payable or paid by a Borrower, or paid or payable by the Agent, to a Finance Party under the Finance Documents; 12.3.2 which is, or is attributable to, any tax on the overall net income, profits or gains of a Finance Party or any of its holding companies (or the overall net income, profits or gains of a division or branch of the Finance Party or any of its holding companies) or any branch profit tax with respect to such division or branch; 12.3.3 attributable to a Finance Party or its Affiliate wilfully failing to comply with any law or regulation; 12.3.4 attributable to a FATCA Deduction required to be made by a Party; 12.3.5 attributable to any tax under the laws of The Netherlands to the extent levied on the basis of article 17a, paragraph c or any replacement of the Dutch Corporate Income Tax Act (Wet op de vennootschapsbelasting 1969); or 12.3.6 attributable to any tax levied pursuant to the Dutch Withholding Tax Act 2021 (Wet bronbelasting 2021) where such tax would not have been applicable or due if the relevant Bank had been a Qualifying Bank in relation to a Dutch Borrower at the relevant time, unless (i) that Bank is not or has ceased to be a relevant Qualifying Bank at the relevant time as a result of any Change of Tax Law or (ii) a Dutch Borrower has made a deduction or withholding for or on account of tax from any payment under a Finance Document in accordance with Clause 10 (Taxes) (other than a FATCA deduction), but such tax has not been remitted to the Dutch tax authorities in part or in full by the Dutch Borrower. 13. ILLEGALITY AND MITIGATION 13.1 Illegality If it becomes unlawful in any jurisdiction for a Bank to give effect to any of its obligations as contemplated by this Agreement or to fund or maintain any Advance or it becomes unlawful for any Affiliate of a Bank for that Bank to do so, then the Bank may notify the Parent through the Agent accordingly and thereupon: 13.1.1 each Borrower shall, upon request from that Bank within the period allowed or if no period is allowed, forthwith, repay any Advances made to it by that Bank

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53 together with all other amounts payable by it to that Bank under this Agreement; and 13.1.2 the Bank's Commitment shall be cancelled. 13.2 Mitigation Notwithstanding the provisions of Clauses 10 (Taxes), 12 (Increased Costs) and 13.1 (Illegality), if in relation to a Finance Party circumstances arise which would result in: 13.2.1 any deduction, withholding or payment of the nature referred to in Clause 10 (Taxes); or 13.2.2 any increased cost of the nature referred to in Clause 12 (Increased Costs); or 13.2.3 a notification pursuant to Clause 13.1 (Illegality), then without in any way limiting, reducing or otherwise qualifying the rights of such Finance Party, such Finance Party shall promptly upon becoming aware of the same notify the Agent thereof (whereupon the Agent shall promptly notify the Parent) and such Finance Party shall use reasonable endeavours to transfer its participation in the Facilities and its rights hereunder and under the Finance Documents to another financial institution or Facility Office not affected by the circumstances having the results set out in Clauses 13.2.1 to 13.2.3 above and shall otherwise take such reasonable steps as may be open to it to mitigate the effects of such circumstances provided that such Finance Party shall not be under any obligation to take any such action if, in its reasonable opinion, to do so would or would be likely to have a material adverse effect upon its business, operations or financial condition or would involve it in any unlawful activity or any activity that is contrary to its policies or any request, guidance or directive of any competent authority (whether or not having the force of law) or (unless indemnified to its satisfaction) would involve it in any significant expense or tax disadvantage. 14. GUARANTEE 14.1 Guarantee The Guarantor irrevocably and unconditionally: 14.1.1 guarantees to each Finance Party prompt performance by each Borrower of all its obligations under the Finance Documents; 14.1.2 undertakes with each Finance Party that whenever a Borrower does not pay any amount when due under or in connection with any Finance Document, the Guarantor shall forthwith on demand by the Agent pay that amount as if the Guarantor instead of the relevant Borrower were expressed to be the principal obligor; and 14.1.3 indemnifies each Finance Party on demand against any loss or liability suffered by it if any obligation guaranteed by the Guarantor is or becomes unenforceable, invalid or illegal. 14.2 Continuing guarantee This guarantee is a continuing guarantee and will extend to the ultimate balance of all sums payable by the Borrowers under the Finance Documents, regardless of any intermediate payment or discharge in whole or in part. 14.3 Reinstatement 14.3.1 Where any discharge, release or arrangement (whether in respect of the obligations of any Borrower or any security for those obligations or otherwise) is made in whole or in part or any arrangement is made on the faith of any payment, security or other disposition which is avoided or must be restored on insolvency, liquidation or otherwise without limitation, the liability of the Guarantor under this Clause 14 shall continue as if the discharge or arrangement had not occurred 54 (but only to the extent that such payment, security or other disposition is avoided or restored). 14.3.2 Each Finance Party may concede or compromise any claim that any payment, security or other disposition is liable to avoidance or restoration. 14.4 Waiver of defences The obligations of the Guarantor under this Clause 14 will not be affected by any act, omission, matter or thing which, but for this provision, would reduce, release or prejudice any of its obligations under this Clause 14 or prejudice or diminish those obligations in whole or in part, including, without limitation, (whether or not known to it or any Finance Party): 14.4.1 any time or waiver granted to, or composition with, any Borrower or other person; 14.4.2 the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets of, any Borrower or other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security; 14.4.3 any incapacity or lack of powers, authority or legal personality of or dissolution or change in the members or status of a Borrower or any other person; 14.4.4 any variation (however fundamental) or replacement of a Finance Document or any other document or security so that references to that Finance Document in this Clause 14 shall include each variation or replacement; 14.4.5 any unenforceability, illegality or invalidity of any obligation of any person under any Finance Document or any other document or security, to the intent that the Guarantor's obligations under this Clause 14 shall remain in full force and its guarantee be construed accordingly, as if there were no unenforceability, illegality or invalidity; and 14.4.6 any postponement, discharge, reduction, non-provability or other similar circumstance affecting any obligation of any Borrower under a Finance Document resulting from any insolvency, liquidation or dissolution proceedings or from any law, regulation or order so that each such obligation shall for the purposes of the Guarantor's obligations under this Clause 14 be construed as if there were no such circumstance. 14.5 Immediate recourse The Guarantor waives any right it may have of first requiring any Finance Party (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or claim payment from any person before claiming from the Guarantor under this Clause 14. This waiver applies irrespective of any law or any provision of a Finance Document to the contrary. 14.6 Appropriations Until all amounts which may be or become payable by the Borrowers to it under or in connection with the Finance Documents have been irrevocably paid in full, each Finance Party (or any trustee or agent on its behalf) may: 14.6.1 refrain from applying or enforcing any other moneys, security or rights held or received by that Finance Party (or any trustee or agent on its behalf) in respect of those amounts, or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and the Guarantor shall not be entitled to the benefit of the same; and 14.6.2 hold in an interest bearing suspense account any moneys received from the Guarantor or on account of the Guarantor's liability under this Clause 14. 55 14.7 Non-competition Until all amounts which may be or become payable by the Borrowers under or in connection with the Finance Documents have been paid in full, the Guarantor shall not, after a claim has been made or by virtue of any payment or performance by it under this Clause 14: 14.7.1 be subrogated to any rights, security or moneys held, received or receivable by any Finance Party (or any trustee or agent on its behalf) or be entitled to any right of contribution or indemnity in respect of any payment made or moneys received on account of the Guarantor's liability under this Clause 14; 14.7.2 claim, rank, prove or vote as a creditor of any Borrower or its estate in competition with any Finance Party (or any trustee or agent on its behalf); or 14.7.3 receive, claim or have the benefit of any payment, distribution or security from or on account of any Borrower, or exercise any right of set-off as against any Borrower. The Guarantor shall hold on trust for and forthwith pay or transfer to the Agent for the Finance Parties any payment or distribution or benefit of security received by it contrary to this Clause 14.7. 14.8 Additional security This guarantee is in addition to and is not in any way prejudiced by any other security now or hereafter held by any Finance Party. 15. REPRESENTATIONS AND WARRANTIES 15.1 Representations and warranties Each Obligor makes the representations and warranties set out in this Clause 15 to each Finance Party (but in the case of an Obligor other than the Parent only in respect of itself). 15.2 Status It is a duly incorporated and validly existing corporation under the laws of the jurisdiction of its incorporation. 15.3 Powers and authority It has the power to enter into, or, as the case may be, to comply with, and be bound by all obligations expressed on its part under the Finance Documents and (in the case of a Borrower) to borrow under this Agreement and (in the case of the Guarantor) to give the guarantee in Clause 14 (Guarantee) and has taken all necessary actions to authorise (in the case of a Borrower) borrowings under this Agreement and (in the case of the Guarantor) the giving of the guarantee in Clause 14 (Guarantee) and to authorise the execution, delivery and performance of the Finance Documents. 15.4 Non-conflict The execution, delivery and performance of the Finance Documents will not violate any provisions of any existing law or regulation or statute applicable to it or of any mortgage, contract or other undertaking to which it is a party or which is binding upon its assets. 15.5 Borrowing limits Borrowings under this Agreement up to and including the maximum amount available under this Agreement will not when borrowed cause any limit on borrowings or, as the case may be, on the giving of guarantees (whether imposed by statute, regulation, agreement or otherwise), or on the powers of its board of directors, applicable to it to be exceeded. 56 15.6 Authorisations All relevant consents or authorisations of any governmental authority or agency required by it in connection with the execution, validity, performance or enforceability of the Finance Documents have been obtained and are subsisting. 15.7 Pari passu Its obligations under the Finance Documents constitute its legal, valid and binding unsecured and unsubordinated obligations ranking (subject to the preference of certain obligations in the liquidation, bankruptcy or other analogous proceedings in respect of it by operation of applicable law) pari passu with all its other unsecured and unsubordinated obligations. 15.8 Litigation Save in respect of legal or arbitration proceedings disclosed in the last published annual audited or interim unaudited consolidated financial statements or preliminary results in respect of any financial year of the Parent or disclosed by the Parent to the Agent in writing on or before the Signing Date: 15.8.1 no liability has arisen in relation to any legal or arbitration proceedings involving any member of the Group which will require a provision to be made in the next published consolidated financial statements of the Parent and, in the reasonable judgement of the board of directors of the Parent, will have a material adverse effect on the ability of the Obligors (taken as a whole) to perform their obligations under the Finance Documents; and 15.8.2 to the best of the knowledge of the Obligors, no actions or investigations by any governmental or regulatory agency are ongoing against any of the Obligors in relation to an alleged breach of any Anti-Bribery and Corruption Laws or Anti- Money Laundering Laws. 15.9 Material adverse change There has been no material adverse change in the financial condition of the Group (taken as a whole) since the last audited consolidated financial statements of the Group, which in the reasonable judgement of the board of directors of the Parent has had or will have a material adverse effect on the Obligors' ability (taken as a whole) to perform their obligations under the Finance Documents. This Clause 15.9 does not apply to matters covered by Clause 15.8 (Litigation). 15.10 Accounts The most recent audited consolidated profit and loss account and balance sheet of the Parent which have been or are to be delivered to the Agent together with the notes thereto give a true and fair view of the results of the operations of the Parent and its Subsidiaries for the period to which they relate and, as the case may be, the financial position of the Parent and its Subsidiaries as at the date to which they relate and have been prepared in accordance with GAAP consistently applied. 15.11 Sanctions and Anti-Bribery and Corruption 15.11.1 Save as disclosed in the last published annual audited or interim unaudited consolidated financial statements or preliminary results in respect of any financial year of the Parent or disclosed by the Parent to the Agent in writing on or before the Signing Date, none of the Obligors nor, to the best of the knowledge of the Obligors, any director, officer, agent, employee or affiliate of the Obligors:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61 17.2 Non-payment An Obligor does not pay, within five Business Days of the due date, any amount payable by it under the Finance Documents at the place at and in the currency in which it is expressed to be payable. 17.3 Breach of other obligations An Obligor does not comply with any provision of the Finance Documents (other than those referred to in Clause 17.2 (Non-payment)) and such failure (if capable of remedy before the expiry of such period) continues un-remedied for a period of 30 days from the earlier of the date on which: (a) an Obligor becomes aware of the failure to comply; or (b) the Agent gives notice to the Parent requiring the same to be remedied. 17.4 Misrepresentation A representation, warranty or statement made or deemed to be repeated by any Obligor in any Finance Document or in any document delivered by or on behalf of any Obligor under or in connection with any Finance Document is incorrect in any respect which is material in the context of this Agreement when made or deemed to be made or repeated. 17.5 Cross-default Any other Borrowed Moneys Indebtedness of an Obligor becomes due and repayable by reason of an event of default (howsoever described) prior to its stated date of payment or any other Borrowed Moneys Indebtedness of an Obligor is not paid within the longer of seven days of its due date or any applicable grace period thereof (and for such purpose there shall be deemed to be a grace period of not less than seven days in respect of any obligation under any guarantee or indemnity or otherwise as surety), provided that no such event shall constitute an Event of Default unless the Borrowed Moneys Indebtedness either: 17.5.1 in any particular case amounts to at least £50,000,000 or the equivalent thereof in any other currency; or 17.5.2 when aggregated with other Borrowed Moneys Indebtedness then so due and repayable or not so paid amounts to at least £200,000,000 or the equivalent thereof in any other currency. 17.6 Insolvency 17.6.1 An Obligor is, or is deemed for the purposes of any law to be unable to pay its debts as they fall due or to be insolvent (except by reason of the failure to pay individual liability not exceeding US$10,000,000 or its equivalent in any other currency), or admits inability to pay its debts as they fall due. 17.6.2 An Obligor suspends making payments on all or any class of its debt or announces an intention to do so, or a moratorium (such moratorium including a surseance van betaling, in the case of an Obligor incorporated in the Netherlands) (other than a general governmental moratorium affecting foreign currency or exchange controls) is declared in respect of any of its indebtedness. 17.6.3 An Obligor, by reason of financial difficulties, begins negotiations with its creditors generally or any class of them with a view to the readjustment or rescheduling of any of its indebtedness. 17.7 Insolvency proceedings 17.7.1 Any formal voluntary step commencing legal proceedings (including petition or convening a meeting) is taken by an Obligor (other than a US Debtor) with a view to a composition, assignment or arrangement with any class of creditors of an Obligor (other than a US Debtor). 17.7.2 A meeting of an Obligor (other than a US Debtor) is convened by its directors or secretary for the purpose of considering any resolution for (or to petition for) its 62 winding-up or for its administration or, in the case of an Obligor incorporated in the Netherlands, its bankruptcy (faillissement), or any such resolution is passed. 17.7.3 Any person presents a petition for the winding-up or for the administration of an Obligor (other than a US Debtor) or, in the case of an Obligor incorporated in the Netherlands, its bankruptcy (faillissement), and the petition is not discharged or stayed within 21 days. 17.7.4 An order for the winding up or administration of an Obligor (other than a US Debtor) or, in the case of an Obligor incorporated in the Netherlands, its bankruptcy (faillissement), is made. 17.8 Appointment of receivers and managers 17.8.1 Any liquidator, trustee in bankruptcy, judicial custodian, compulsory manager, receiver, administrative receiver, administrator, herstructureringsdeskundige or the like is appointed in respect of an Obligor (other than a US Debtor) or all or substantially all of its assets and, only in the case of the appointment of a judicial custodian, compulsory manager or receiver, is not discharged within 21 days. 17.8.2 The directors of an Obligor (other than a US Debtor) request the appointment of a liquidator, trustee in bankruptcy, judicial custodian, compulsory manager, receiver, administrative receiver, administrator, herstructureringsdeskundige or the like in respect of itself. 17.9 Creditors' process Any attachment, sequestration, distress or execution affects any material asset of an Obligor and is not discharged within 21 days. 17.10 Analogous proceedings There occurs, in relation to an Obligor any event anywhere which corresponds with any of those mentioned in Clauses 17.6 (Insolvency) to 17.9 (Creditors' process) (both inclusive). 17.11 US Bankruptcy Law Any of the following occurs in respect of a US Debtor: 17.11.1 it makes a general assignment for the benefit of creditors; 17.11.2 it commences a voluntary case or proceeding under any US Bankruptcy Law; or 17.11.3 an involuntary case under any US Bankruptcy Law is commenced against it and is not dismissed or stayed within 60 days after commencement of the case. 17.12 Unlawfulness It is or becomes unlawful for any Obligor to perform any of its payment or other material obligations under the Finance Documents. 17.13 Guarantee The guarantee of the Guarantor under Clause 14 (Guarantee) is not effective or is alleged by an Obligor to be ineffective for any reason (other than by reason of written release or waiver by the Finance Parties). 17.14 Employee Plans Any ERISA Event shall have occurred that, when aggregated with all other ERISA Events, would have or would be reasonably expected to result in a material adverse effect on the ability of the Obligors (taken as a whole) to perform their obligations under the Finance Documents. 63 17.15 Exceptions Nothing in Clause 17.7 (Insolvency proceedings), 17.8 (Appointment of receivers and managers) or 17.10 (Analogous proceedings) applies to any reconstruction, amalgamation or other transfer of any part of any Obligor's business and/or assets to or with another Obligor. 17.16 Acceleration 17.16.1 If an Event of Default described in Clause 17.11 (US Bankruptcy Law) occurs, the Total Commitments will, if not already cancelled under this Agreement, be immediately and automatically cancelled and all amounts outstanding under the Finance Documents will be immediately and automatically due and payable, without the requirement of notice or any other formality. 17.16.2 On and at any time after the occurrence of an Event of Default and while such event is continuing the Agent may, and shall if so directed by the Majority Banks, by notice to the Parent, declare that an Event of Default has occurred and: (A) to the extent not already cancelled under Clause 17.16.1 above, cancel the Total Commitments; and/or (B) to the extent not already due and payable pursuant to Clause 17.16.1 above, demand that all the Advances, together with accrued interest, and all other amounts accrued under this Agreement be immediately due and payable, whereupon they shall become immediately due and payable; and/or (C) demand that all the Advances be payable on demand, whereupon they shall immediately become payable on demand. 18. THE ADMINISTRATIVE PARTIES 18.1 Appointment and duties of the Administrative Parties Each Finance Party (other than the Agent) irrevocably appoints the Agent to act as its agent under and in connection with the Finance Documents and each US$ Swingline Bank appoints the US$ Swingline Agent to act as its agent in relation to Swingline Facility A, each Euro Swingline Bank appoints the Euro Swingline Agent to act as its agent in relation to Swingline Facility B, and each Finance Party irrevocably authorises the Agent or, as the case may be, the relevant Swingline Agent on its behalf to perform the duties and to exercise the rights, powers and discretions that are specifically delegated to it under or in connection with the Finance Documents, together with any other incidental rights, powers and discretions. The Administrative Parties shall have only those duties which are expressly specified in this Agreement (and no duties, responsibilities or obligations shall be implied). Those duties are solely of a mechanical and administrative nature. 18.2 Relationship The relationship between each Administrative Party and the other Finance Parties is that of agent and principal only. Nothing in this Agreement constitutes any of the Administrative Parties as trustee or fiduciary for any other Party or any other person and the Administrative Parties need not hold in trust any moneys paid to it for a Party or be liable to account for interest on those moneys. 18.3 Majority Banks' directions Each Administrative Party will be fully protected if it acts in accordance with the instructions of the Majority Banks in connection with the exercise of any right, power or discretion or any matter not expressly provided for in the Finance Documents. Any such instructions given by the Majority Banks will be binding on all the Banks. In the absence of such instructions, an Administrative Party may act or refuse to act as it considers to be in the best interests of all the Banks. No Administrative Party shall be liable to any Bank for any 64 act (or omission) if it acts (or refrains from taking any action) in accordance with an instruction of the Majority Banks. An Administrative Party may refrain from acting in accordance with any instructions of any Bank or group of Banks until it has received any indemnification and/or security from such Bank or group of Banks that it may in its discretion require (which may be greater in extent than that contained in the Finance Documents and which may include payment in advance) for any cost, loss or liability which it may incur in complying with those instructions. 18.4 Delegation Each Administrative Party may act under the Finance Documents through its personnel and agents. 18.5 Responsibility for documentation No Administrative Party is responsible to any other Party for: 18.5.1 the execution, genuineness, validity, enforceability or sufficiency of any Finance Document or any other document; 18.5.2 the collectability of amounts payable under any Finance Document; or 18.5.3 the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document. 18.6 Default 18.6.1 No Administrative Party is obliged to monitor or enquire as to whether or not a Default has occurred. No Administrative Party will be deemed to have knowledge of the occurrence of a Default. However, if an Administrative Party receives notice from a Party referring to this Agreement, describing the Default and stating that the event is a Default, it shall promptly notify the Banks. 18.6.2 Any Administrative Party may require the receipt of security satisfactory to it from the Banks whether by way of payment in advance or otherwise, against any liability or loss which it will or may incur in taking any proceedings or action arising out of or in connection with any Finance Document before it commences these proceedings or takes that action. 18.7 Exoneration 18.7.1 Without limiting Clause 18.7.2 below, no Administrative Party will be liable to any other Party for any action taken or not taken by it under or in connection with any Finance Document, unless directly caused by its negligence or wilful misconduct. 18.7.2 No Party may take any proceedings against any officer, employee or agent of any Administrative Party in respect of any claim it might have against that Administrative Party in respect of any act or omission of any kind (including negligence or wilful misconduct) by that officer, employee or agent in relation to any Finance Document. 18.7.3 No Administrative Party will be liable for any damages, costs or losses to any person, any diminution in value or any liability whatsoever arising as a result of: (A) any act, event or circumstance not reasonably within its control; or (B) the general risks of investment in, or the holding of assets in, any jurisdiction, including (in each case and without limitation) such damages, costs, losses, diminution in value or liability arising as a result of: nationalisation, expropriation or other governmental actions; any regulation, currency restriction, devaluation or fluctuation; market conditions affecting the execution or settlement of transactions or the value of assets (including any Disruption Event); breakdown, failure or malfunction of any third party transport, telecommunications, computer services

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65 or systems; natural disasters or acts of God; war, terrorism, insurrection or revolution; or strikes or industrial action. 18.7.4 Without prejudice to any provision of any Finance Document excluding or limiting any Administrative Party's liability, any liability of an Administrative Party arising under or in connection with any Finance Document shall be limited to the amount of actual loss suffered (as determined by reference to the date of default of that Administrative Party or, if later, the date on which the loss arises as a result of such default) but without reference to any special conditions or circumstances known to that Administrative Party at any time which increase the amount of that loss. In no event shall any Administrative Party be liable for any loss of profits, goodwill, reputation, business opportunity or anticipated saving, or for special, punitive, indirect or consequential damages, whether or not that Administrative Party has been advised of the possibility of such loss or damages. 18.8 Reliance Each Administrative Party may: 18.8.1 rely on any notice or document believed by it to be genuine and correct and to have been signed by, or with the authority of, the proper person; 18.8.2 rely on any statement made by a director or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify; and 18.8.3 engage, pay for and rely on legal or other professional advisers selected by it (including those in that Administrative Party's employment and those representing a Party other than that Administrative Party). 18.9 Credit approval and appraisal Without affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Finance Document, each Bank confirms that it: 18.9.1 has made its own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in connection with its participation in this Agreement and has not relied exclusively on any information provided to it by any Administrative Party in connection with any Finance Document; and 18.9.2 will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities while any amount is or may be outstanding under the Finance Documents or any Commitment is in force. 18.10 Information 18.10.1 Each Administrative Party shall promptly forward to the person concerned the original or a copy of any document which is delivered to that Administrative Party by a Party for that person. 18.10.2 The Agent shall promptly supply a Bank with a copy of each document received by the Agent under Clause 4 (Conditions Precedent) or 25.6 (Additional Borrowers) upon the request and at the expense of that Bank. 18.10.3 Except where this Agreement specifically provides otherwise, no Administrative Party is obliged to review or check the accuracy or completeness of any document it forwards to another Party. 18.10.4 Except as provided above, no Administrative Party has any duty: (A) either initially or on a continuing basis to provide any Bank with any credit or other information concerning the financial condition or affairs of any Obligor or any related entity of any Obligor whether coming into its 66 possession or that of any of its related entities before, on or after the Signing Date; or (B) unless specifically requested to do so by a Bank in accordance with this Agreement, to request any certificates or other documents from any Obligor. 18.10.5 An Administrative Party may disclose the identity of a Defaulting Bank to the other Finance Parties and the Parent and shall disclose the same upon the written request of the Parent, a Borrower or the Majority Banks. 18.11 The Administrative Parties individually 18.11.1 If it is also a Bank, each Administrative Party has the same rights and powers under this Agreement as any other Bank and may exercise those rights and powers as though it were not an Administrative Party. 18.11.2 Each Administrative Party may: (A) carry on any business with an Obligor or its related entities; (B) act as agent or trustee for, or in relation to any financing involving, an Obligor or its related entities; and (C) retain any profits or remuneration in connection with its activities under this Agreement or in relation to any of the foregoing. 18.12 Indemnities 18.12.1 Without limiting the liability of any Obligor under the Finance Documents, each Bank shall forthwith on demand indemnify each Administrative Party for its proportion of any cost, liability or loss incurred by that Administrative Party in any way relating to or arising out of its acting as an Administrative Party, except to the extent that the liability or loss arises directly from that Administrative Party's negligence or wilful misconduct. 18.12.2 A Bank's proportion of the liability or loss set out in Clause 18.12.1 above is the proportion which the Original Sterling Amount of its Advance(s) bears to the Original Sterling Amount of all Advances outstanding on the date of the demand. If, however, no Advances are outstanding on the date of demand, then the proportion will be the proportion which its Commitment bears to the Total Commitments at the date of demand or, if the Total Commitments have been cancelled, bore to the Total Commitments immediately before being cancelled. 18.12.3 The Parent shall forthwith on demand reimburse each Bank for any payment made by it under Clause 18.12.1 above except to the extent it arises out of the Bank's negligence or default. 18.13 Compliance 18.13.1 An Administrative Party may refrain from doing anything which might, in its opinion, constitute a breach of any law or regulation or be otherwise actionable at the suit of any person, and may do anything which, in its opinion, is necessary or desirable to comply with any law or regulation of any jurisdiction. 18.13.2 Without limiting Clause 18.13.1 above, an Administrative Party need not disclose any information relating to any Obligor or any of its related entities if the disclosure might, in the opinion of that Administrative Party constitute a breach of any law or regulation or any duty of secrecy or confidentiality or be otherwise actionable at the suit of any person. 18.14 Deduction from amounts payable by the Administrative Parties If any Party owes an amount to an Administrative Party under the Finance Documents the Administrative Party may, after giving notice to that Party, deduct an amount not exceeding that amount from any payment to that Party which the Administrative Party would otherwise 67 be obliged to make under the Finance Documents and apply the amount deducted in or towards satisfaction of the amount owed. For the purposes of the Finance Documents that Party shall be regarded as having received any amount so deducted. 18.15 Money held as banker The Agent shall be entitled to deal with money paid to it by any person for the purposes of this Agreement in the same manner as other money paid to a banker by its customers except that it shall not be liable to account to any person for any interest or other amounts in respect of the money. 18.16 Resignation of an Administrative Party 18.16.1 Notwithstanding its irrevocable appointment an Administrative Party may resign by giving notice to the Banks and the Parent, in which case the Parent may (following consultation with the Banks, or the relevant Swingline Banks, as the case may be) forthwith appoint a successor Administrative Party (which shall be a Bank or an Affiliate of a Bank) or, failing that, the retiring Administrative Party shall forthwith appoint its successor or, failing that, the Majority Banks shall appoint the successor Administrative Party. 18.16.2 The resignation of the retiring Administrative Party and the appointment of any successor Administrative Party will both become effective only upon the successor Administrative Party notifying all the Parties that it accepts the appointment. On giving the notification and receiving such approval, the successor Administrative Party will succeed to the position of the retiring Administrative Party and the term "Agent", "US$ Swingline Agent" or "Euro Swingline Agent" will mean the successor Agent, successor US$ Swingline Agent or successor Euro Swingline Agent. 18.16.3 The retiring Administrative Party shall, at its own cost, make available to its successor such documents and records and provide such assistance as the relevant successor Administrative Party may reasonably request for the purposes of performing its functions as the relevant Administrative Party under this Agreement. 18.16.4 Upon its resignation becoming effective, this Clause 18 shall continue to benefit the relevant retiring Administrative Party in respect of any action taken or not taken by it under or in connection with the Finance Documents while it was the relevant Administrative Party and, subject to Clause 18.16.3 above, it shall have no further obligation under any Finance Document. 18.16.5 Notwithstanding the irrevocable appointment of an Administrative Party, after consultation with the Parent, the Majority Banks may, by notice to that Administrative Party, require it to resign in accordance with Clause 18.16.1 above. In this event, such Administrative Party shall resign in accordance with Clause 18.16.1 above. 18.16.6 An Administrative Party shall resign in accordance with Clause 18.16.1 above if on or after the date which is three months before the earliest FATCA Application Date relating to any payment to that Administrative Party under the Finance Documents: (A) that Administrative Party fails to respond to a request under Clause 10.6 (FATCA) and an Obligor or a Bank reasonably believes that that Administrative Party will not be (or will have ceased to be) FATCA Exempt (as defined in Clause 10.6 (FATCA)) on or after that FATCA Application Date; (B) the information supplied by that Administrative Party pursuant to Clause 10.6 (FATCA) indicates that that Administrative Party will not be (or will have ceased to be) FATCA Exempt on or after that FATCA Application Date; or 68 (C) that Administrative Party notifies an Obligor and the Bank that that Administrative Party will not be (or will have ceased to be) FATCA Exempt on or after that FATCA Application Date, and (in each case) an Obligor or a Bank reasonably believes that a Party will be required to make a FATCA Deduction that would not be required if that Administrative Party were FATCA Exempt, and the Obligor or a Bank, by notice to that Administrative Party, requires it to resign. 18.16.7 If an Administrative Party resigns pursuant to Clause 18.16.6 above: (A) its successor shall be appointed in accordance with Clause 18.16.1 above; and (B) such resignation shall only become effective when the successor Administrative Party notifies all the Parties that it accepts such appointment. 18.17 Replacement of an Administrative Party 18.17.1 After consultation with the Parent, the Majority Banks may, by giving 30 days' written notice to the relevant Administrative Party (or, at any time the relevant Administrative Party is an Impaired Agent, by giving any shorter notice determined by the Majority Banks) replace that Administrative Party by appointing a successor Administrative Party. 18.17.2 The retiring Administrative Party shall (at its own cost if it is an Impaired Agent and otherwise at the expense of the Banks) make available to the successor Administrative Party such documents and records and provide such assistance as the successor Administrative Party may reasonably request for the purposes of performing its functions as agent under the Finance Documents. 18.17.3 The appointment of the successor Administrative Party shall take effect on the date specified in the notice from the Majority Banks to the retiring Administrative Party. As from this date, the retiring Administrative Party shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit of this Clause 18 (and any agency fees for the account of the retiring Administrative Party shall cease to accrue from (and shall be payable on) that date). 18.17.4 Any successor Administrative Party and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party. 18.18 Banks Each Administrative Party may treat each Bank as a Bank, entitled to payments under this Agreement and as acting through its Facility Office(s) until it has received notice from the Bank to the contrary by not less than five Business Days prior to the relevant payment. 18.19 Regulatory Position The Agent is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Nothing in this Agreement shall require the Agent to carry on an activity of the kind specified by any provision of Part II (other than article 5 (accepting deposits)) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 or to lend money to any Borrower in its capacity as Agent. 18.20 Information Barriers In acting as an Administrative Party, the agency and syndications division of each Administrative Party shall be treated as a separate entity from its other divisions and departments. Any information acquired at any time by an Administrative Party otherwise

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69 than in the capacity of an Administrative Party through its agency and syndications division (whether as financial advisor to any member of the Group or otherwise) may be treated as confidential by that Administrative Party and shall not be deemed to be information possessed by that Administrative Party in their capacity as such. Each Finance Party acknowledges that each Administrative Party may, now or in the future, be in possession of, or provided with, information relating to the Obligors which has not or will not be provided to the other Finance Parties. Each Finance Party agrees that, except as expressly provided in this Agreement no Administrative Party will be under any obligation to provide, or under any liability for failure to provide, any such information. 18.21 Amounts paid in error 18.21.1 If any of the Administrative Parties pays an amount to another Party and within ten Business Days of the date of payment the relevant Administrative Party notifies that Party that such payment was an Erroneous Payment then the Party to whom that amount was paid by the relevant Administrative Party shall on demand refund the same to that Administrative Party. 18.21.2 Neither: (A) the obligations of any Party to the relevant Administrative Party; nor (B) the remedies of the relevant Administrative Party; (whether arising under this Clause 18.21 or otherwise) which relate to an Erroneous Payment will be affected by any act, omission, matter or thing which, but for this Clause 18.21.2, would reduce, release or prejudice any such obligation or remedy (whether or not known by the relevant Administrative Party or any other Party). 18.21.3 All payments to be made by a Party to the relevant Administrative Party (whether made pursuant to this Clause 18.21 or otherwise) which relate to an Erroneous Payment shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim. 18.21.4 In this Agreement, "Erroneous Payment" means a payment of an amount by the relevant Administrative Party to another Party which that Administrative Party determines (in its sole discretion) was made in error. 19. FEES 19.1 Commitment fee 19.1.1 The Parent shall, on behalf of the Borrowers, pay to the Agent: (A) a commitment fee at the rate of 25 per cent. of the applicable Margin calculated in accordance with Clause 8.3 (Calculation of the Margin) on the undrawn, uncancelled amount of the Total Revolving Facility A Commitments on each day, for distribution to each Bank pro rata to the proportion its Revolving Facility A Commitment bears to the Total Revolving Facility A Commitments from time to time; and (B) a commitment fee at the rate of 35 per cent. of the applicable Margin calculated in accordance with Clause 8.3 (Calculation of the Margin) on the undrawn, uncancelled amount of the Total Revolving Facility B Commitments on each day, for distribution to each Bank pro rata to the proportion its Revolving Facility B Commitment bears to the Total Revolving Facility B Commitments from time to time. 19.1.2 Each commitment fee is calculated and accrues from the Signing Date on a daily basis and is payable quarterly in arrear with the first payment due three months after the Signing Date for the period from the Signing Date. Accrued commitment fee is also payable to the Agent for the relevant Bank(s) on the cancelled amount of its Commitment at the time the cancellation takes effect. 70 19.1.3 No commitment fee is payable to the Agent (for the account of a Bank) on any Available Commitment of a Bank on any day on which such Bank is a Bank in relation to which: (A) any of the events or circumstances referred to in paragraph (a), (b) or (c) of the definition of "Defaulting Bank" has occurred; and (B) in so far as such event or circumstance relates to paragraph (c) of the definition of "Defaulting Bank", a notice of cancellation has been despatched by the Parent to the Agent under Clause 7.6 (Right of cancellation in relation to a Defaulting Bank) (such Bank being a "Disenfranchised Bank"). 19.2 Utilisation Fee 19.2.1 In respect of Revolving Facility A: (A) on any day on which the aggregate Original Sterling Amount of all outstanding Advances under Revolving Facility A is less than or equal to one third of the Total Revolving Facility A Commitments on that day, the Parent shall, on behalf of the Borrowers, pay to the Agent for distribution to each Bank with a Revolving Facility A Commitment a utilisation fee at the rate of 0.075 per cent. per annum on the Original Sterling Amount of each Bank's share of the Advances under Revolving Facility A outstanding on that day; (B) on any day on which the aggregate Original Sterling Amount of all outstanding Advances under Revolving Facility A exceeds one third but is less than or equal to two thirds of the Total Revolving Facility A Commitments on that day, the Parent shall, on behalf of the Borrowers, pay to the Agent for distribution to each Bank with a Revolving Facility A Commitment a utilisation fee at the rate of 0.15 per cent. per annum on the Original Sterling Amount of each Bank's share of the Advances under Revolving Facility A outstanding on that day; and (C) on any day on which the aggregate Original Sterling Amount of all outstanding Advances under Revolving Facility A exceeds two thirds of the Total Revolving Facility A Commitments on that day, the Parent shall, on behalf of the Borrowers, pay to the Agent for distribution to each Bank with a Revolving Facility A Commitment a utilisation fee at the rate of 0.30 per cent. per annum on the Original Sterling Amount of each Bank's share of the Advances under Revolving Facility A outstanding on that day. 19.2.2 In respect of Revolving Facility B: (A) on any day on which the aggregate Original Sterling Amount of all outstanding Advances under Revolving Facility B is less than or equal to one third of the Total Revolving Facility B Commitments on that day, the Parent shall, on behalf of the Borrowers, pay to the Agent for distribution to each Bank with a Revolving Facility B Commitment a utilisation fee at the rate of 0.075 per cent. per annum on the Original Sterling Amount of each Bank's share of the Advances under Revolving Facility B outstanding on that day; (B) on any day on which the aggregate Original Sterling Amount of all outstanding Advances under Revolving Facility B exceeds one third but is less than or equal to two thirds of the Total Revolving Facility B Commitments on that day, the Parent shall, on behalf of the Borrowers, pay to the Agent for distribution to each Bank with a Revolving Facility B Commitment a utilisation fee at the rate of 0.15 per cent. per annum on 71 the Original Sterling Amount of each Bank's share of the Advances under Revolving Facility B outstanding on that day; and (C) on any day on which the aggregate Original Sterling Amount of all outstanding Advances under Revolving Facility B exceeds two thirds of the Total Revolving Facility B Commitments on that day, the Parent shall, on behalf of the Borrowers, pay to the Agent for distribution to each Bank with a Revolving Facility B Commitment a utilisation fee at the rate of 0.30 per cent. per annum on the Original Sterling Amount of each Bank's share of the Advances under Revolving Facility B outstanding on that day. 19.2.3 Utilisation fees (if any) are calculated on a daily basis and are payable quarterly in arrears, with the first payment (if any) due three months after the Signing Date for the period from the Signing Date. Any accrued utilisation fee unpaid at the time the Commitments are repaid and cancelled in full will be paid on the date of such repayment and cancellation. 19.3 Administrative Parties fees 19.3.1 The Parent shall, on behalf of the Borrowers, pay to the Administrative Parties for their own account agency fees in the amounts and on the dates agreed in the relevant Fee Letter. 19.3.2 The fees, commissions and expenses payable to an Administrative Party for services rendered and the performance of its obligations under this Agreement shall not be abated by any remuneration or other amounts or profits receivable by that Administrative Party (or by any of its associates) in connection with any transaction effected by that Administrative Party with or for the Banks or the Parent. 19.4 Up-front fee The Parent shall, on behalf of the Borrowers, pay to the Agent for distribution to each Bank an up-front fee in the amounts and on the date agreed in the relevant Fee Letter. 19.5 Extension fee 19.5.1 If all or part of Revolving Facility A is extended in accordance with Clause 2.4.4 or 2.4.6 (Extension Option – Revolving Facility A and Swingline Facility A), the Parent shall, if applicable, pay to the Agent for distribution to each Revolving Facility A First Extension Bank and Revolving Facility A Second Extension Bank, an extension fee in the amount of 0.05 per cent. of the Revolving Facility A Commitments which are extended as at the date of each relevant extension (being the first or second anniversary of the Signing Date, as applicable). 19.5.2 If all or part of Revolving Facility B is extended in accordance with Clause 2.6.4 or 2.6.6 (Extension Option – Revolving Facility B and Swingline Facility B), the Parent shall, if applicable, pay to the Agent for distribution to each Revolving Facility B First Extension Bank and Revolving Facility B Second Extension Bank, an extension fee in the amounts and on the date agreed in the relevant Fee Letter. 19.6 Term Out fee If the Term Out Option is exercised in accordance with Clause 2.5 (Term Out Option – Revolving Facility A), the Parent shall pay to the Agent for distribution to each relevant Bank a term out fee in the amounts and on the date agreed in the relevant Fee Letter. 72 19.7 VAT Any fee referred to in this Clause 19 is exclusive of any United Kingdom value added tax. If any value added tax is so chargeable, it shall be paid by the Parent at the same time as it pays the relevant fee. 20. EXPENSES 20.1 Initial and special costs The Parent shall forthwith on demand pay the Administrative Parties the amount of all out- of-pocket costs and expenses (including but not limited to legal fees) reasonably incurred by any of them in connection with: 20.1.1 the negotiation, preparation, printing and execution of: (A) this Agreement and any other documents referred to in this Agreement; and (B) any other Finance Document (other than a Novation Certificate) executed after the Signing Date; 20.1.2 any amendment waiver, consent or suspension of rights (or any proposal for any of the foregoing) requested by or on behalf of an Obligor and relating to a Finance Document or a document referred to in any Finance Document; and 20.1.3 any other matter, not of an ordinary administrative nature, arising out of or in connection with a Finance Document. 20.2 Enforcement costs The Parent shall forthwith on demand pay to each Finance Party the amount of all costs and expenses (including legal fees) incurred by it: 20.2.1 in connection with the enforcement of, or the preservation of any rights under, any Finance Document; or 20.2.2 in investigating any possible Default of which an Obligor or the Majority Banks have given notice. 21. STAMP DUTIES The Parent shall pay and forthwith on demand indemnify each Finance Party against any liability it incurs in respect of any stamp, registration or similar tax which is or becomes payable in connection with the entry into, performance or enforcement of any Finance Document other than a Novation Certificate or any document signed or otherwise entered into pursuant to Clauses 25.2 (Transfers by Banks), 25.3 (Procedure for novations) and 25.9 (Affiliates of Banks). 22. INDEMNITIES 22.1 Currency indemnity 22.1.1 If a Finance Party receives an amount in respect of an Obligor's liability under the Finance Documents or if that liability is converted into a claim, proof, judgment or order in a currency other than the currency (the "contractual currency") in which the amount is expressed to be payable under the relevant Finance Document: (A) that Obligor shall indemnify that Finance Party as an independent obligation against any loss or liability arising out of or as a result of the conversion; (B) if the amount received by that Finance Party, when converted into the contractual currency at a market rate in the usual course of its business, is less than the amount owed in the contractual currency, the Obligor

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;73 concerned shall forthwith on demand pay to that Finance Party an amount in the contractual currency equal to the deficit; and (C) the Obligor shall pay to the Finance Party concerned on demand any exchange costs and taxes payable in connection with any such conversion. 22.1.2 Each Obligor waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency other than that in which it is expressed to be payable. 22.2 Other indemnities The Parent shall forthwith on demand indemnify each Finance Party against any loss or liability which that Finance Party incurs as a consequence of: 22.2.1 the occurrence of any Event of Default; 22.2.2 the operation of Clause 17.16 (Acceleration) or Clause 29 (Pro Rata Sharing); 22.2.3 in respect of any Term Rate Advance, any payment of principal or an overdue amount being received from any source otherwise than on its Term End Date (and, for the purposes of this Clause 22.2.3, the Term End Date of an overdue amount is the last day of each Term (as described in Clause 8.7 (Default interest))); 22.2.4 the occurrence of a change described in, and the operation of Clause 11.6 (Change in circumstances) in relation to, an Optional Currency; or 22.2.5 (other than by reason of negligence or default by a Finance Party) an Advance not being disbursed after a Borrower has delivered a Request for that Advance. The Parent's liability in each case includes any loss or expense on account of funds borrowed, contracted for or utilised to fund any amount payable under any Finance Document, any amount repaid or prepaid or any Advance. 22.3 Indemnity The Parent shall forthwith on demand by any Administrative Party indemnify the applicable Administrative Party against any actual costs, loss or liability incurred by that Administrative Party (acting reasonably) as a direct result of the applicable Administrative Party acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised. 23. CALCULATIONS AND CERTIFICATES 23.1 Accounts Accounts maintained by a Finance Party in connection with this Agreement are prima facie evidence of the matters to which they relate. 23.2 Certificates and determinations Any certification or determination by a Finance Party of a rate or amount under this Agreement is, in the absence of manifest error, conclusive evidence of the matters to which it relates. 23.3 Day count convention and interest calculation 23.3.1 Any interest, commission or fee accruing under a Finance Document will accrue from day to day and the amount of any such interest, commission or fee is calculated: (A) on the basis of the actual number of days elapsed and a year of 360 days (or, in any case where the practice in the Relevant Market differs, in accordance with that market practice); and 74 (B) subject to Clause 23.3.2 below, without rounding. 23.3.2 The aggregate amount of interest, commission or fee which is, or becomes, payable by an Obligor under a Finance Document shall be rounded to 2 decimal places. 24. AMENDMENTS AND WAIVERS 24.1 Procedure 24.1.1 Subject to Clause 24.2 (Exceptions), any term of the Finance Documents may be amended or waived with the agreement of the Parent and the Agent (acting on the instructions of the Majority Banks). The Agent may effect, on behalf of the Banks, any amendment or waiver permitted by this Clause 24.1.1. 24.1.2 The Agent shall promptly notify the other Parties of any amendment or waiver effected under Clause 24.1.1 above, and any such amendment or waiver shall be binding on all the Parties. 24.2 Exceptions 24.2.1 Subject to Clause 24.3 (Changes to reference rates), an amendment or waiver which relates to: (A) the definition of "Majority Banks" in Clause 1.1 (Definitions); (B) an extension of the date for, or a decrease in an amount or a change in the currency of, any payment under the Finance Documents; (C) an increase in a Bank's Commitment; (D) a change in the guarantee under Clause 14 (Guarantee); (E) any change to the Borrowers other than in accordance with Clause 7.5 (Changes to Borrowers) or 25.6 (Additional Borrowers); (F) a term of a Finance Document which expressly requires the consent of each Bank; or (G) Clause 29 (Pro Rata Sharing) or this Clause 24 (Amendments and Waivers), may not be effected without the consent of each Bank. 24.2.2 An amendment or waiver which relates to the rights or obligations of an Administrative Party (in its capacity as such) may not be effected without the consent of that Administrative Party. 24.3 Changes to reference rates 24.3.1 Subject to Clause 24.3.2 below, if a Published Rate Replacement Event has occurred in relation to any Published Rate for a currency which can be selected for an Advance, any amendment or waiver which relates to: (A) providing for the use of a Replacement Reference Rate; and (B) (1) aligning any provision of any Finance Document to the use of that Replacement Reference Rate; (2) enabling that Replacement Reference Rate to be used for the calculation of interest under this Agreement (including, without limitation, any consequential changes required to enable that Replacement Reference Rate to be used for the purposes of this Agreement); (3) implementing market conventions applicable to that Replacement Reference Rate; 75 (4) providing for appropriate fallback (and market disruption) provisions for that Replacement Reference Rate; or (5) adjusting the pricing to reduce or eliminate, to the extent reasonably practicable, any transfer of economic value from one Party to another as a result of the application of that Replacement Reference Rate (and if any adjustment or method for calculating any adjustment has been formally designated, nominated or recommended by the Relevant Nominating Body, the adjustment shall be determined on the basis of that designation, nomination or recommendation), may be made with the consent of the Agent (acting on the instructions of the Majority Banks) and the Parent. 24.3.2 An amendment or waiver that relates to, or has the effect of, aligning the means of calculation of interest on a Compounded Rate Advance in any currency under this Agreement to any recommendation of a Relevant Nominating Body which: (A) relates to the use of the RFR for that currency on a compounded basis in the international or any relevant domestic syndicated loan markets; and (B) is issued on or after the Signing Date, may be made with the consent of the Agent (acting on the instructions of the Majority Banks) and the Parent. 24.3.3 In this Clause 24.3: "Published Rate" means: (A) an RFR; or (B) the Primary Term Rate for any Quoted Tenor. "Published Rate Replacement Event" means, in relation to a Published Rate: (A) the methodology, formula or other means of determining that Published Rate has, in the opinion of the Majority Banks and the Parent materially changed; (B) (1) (a) the administrator of that Published Rate or its supervisor publicly announces that such administrator is insolvent; or (b) information is published in any order, decree, notice, petition or filing, however described, of or filed with a court, tribunal, exchange, regulatory authority or similar administrative, regulatory or judicial body which reasonably confirms that the administrator of that Published Rate is insolvent, provided that, in each case, at that time, there is no successor administrator to continue to provide that Published Rate; (2) the administrator of that Published Rate publicly announces that it has ceased or will cease to provide that Published Rate permanently or indefinitely and, at that time, there is no successor administrator to continue to provide that Published Rate; 76 (3) the supervisor of the administrator of that Published Rate publicly announces that such Published Rate has been or will be permanently or indefinitely discontinued; (4) the administrator of that Published Rate or its supervisor announces that that Published Rate may no longer be used; or (5) the supervisor of the administrator of that Primary Term Rate makes a public announcement or publishes information stating that that Primary Term Rate for that Quoted Tenor is no longer, or as of a specified future date will no longer be, representative of the underlying market or economic reality that it is intended to measure and that representativeness will not be restored (as determined by such supervisor); or (C) the administrator of that Published Rate (or the administrator of an interest rate which is a constituent element of that Published Rate) determines that that Published Rate should be calculated in accordance with its reduced submissions or other contingency or fallback policies or arrangements and either: (1) the circumstance(s) or event(s) leading to such determination are not (in the opinion of the Majority Banks and the Parent) temporary; or (2) that Published Rate is calculated in accordance with any such policy or arrangement for a period no less than the period specified as the "Published Rate Contingency Period" in the Reference Rate Terms relating to that Published Rate; or (D) in the opinion of the Majority Banks and the Parent, that Published Rate is otherwise no longer appropriate for the purposes of calculating interest under this Agreement. "Relevant Nominating Body" means any applicable central bank, regulator or other supervisory authority or a group of them, or any working group or committee sponsored or chaired by, or constituted at the request of, any of them or the Financial Stability Board. "Replacement Reference Rate" means a reference rate which is: (A) formally designated, nominated or recommended as the replacement for a Published Rate by: (1) the administrator of that Published Rate (provided that the market or economic reality that such reference rate measures is the same as that measured by that Published Rate); or (2) any Relevant Nominating Body, and if replacements have, at the relevant time, been formally designated, nominated or recommended under both paragraphs, the "Replacement Reference Rate" will be the replacement under paragraph (2) above; (B) in the opinion of the Majority Banks and the Parent, generally accepted in the international or any relevant domestic syndicated loan markets as the appropriate successor to a Published Rate; or (C) in the opinion of the Majority Banks and the Parent, an appropriate successor to a Published Rate. 24.4 Waivers and remedies cumulative The rights of each Party under the Finance Documents: 24.4.1 may be exercised as often as necessary;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;77 24.4.2 are cumulative and not exclusive of its rights under the general law; and 24.4.3 may be waived only in writing and specifically. Delay in exercising or non-exercise of any such right is not a waiver of that right. 25. CHANGES TO THE PARTIES 25.1 Transfers by Obligors No Obligor may assign, transfer, novate or dispose of any of, or any interest in, its rights and/or obligations under this Agreement, except in the manner contemplated in Clause 7.5 (Changes to Borrowers). 25.2 Transfers by Banks 25.2.1 A Bank (the "Existing Bank") may at any time assign, transfer, novate or sub- participate any of its rights and/or obligations under this Agreement to another person (the "New Bank") provided that: (A) the Parent shall have given its prior written consent to such assignment, transfer, novation or sub-participation (such consent not to be unreasonably withheld or delayed, having regard (without limitation) to the relative credit rating of the New Bank and the other Banks), except that such consent shall not be required if an Event of Default is outstanding or where the New Bank is an Existing Bank or is an Affiliate of the Existing Bank or any other Bank; (B) in the case of a partial assignment, transfer or novation of rights and/or obligations, a minimum amount of £5,000,000 (unless to an Affiliate of the Existing Bank or the Agent or the Swingline Agent (as applicable) agrees otherwise) must be assigned, transferred or novated; and (C) in the case of an assignment, transfer or novation by a Swingline Bank, a portion of that Swingline Bank's Swingline Commitment must also be assigned, transferred or novated to the extent necessary (if at all) to ensure that the Swingline Bank's Swingline Commitments under a Revolving Facility do not exceed its Revolving Facility Commitment under that Revolving Facility after the assignment, transfer or novation. A Bank may not acquire a Swingline Commitment under a Revolving Facility if that Swingline Commitment would exceed its Revolving Facility Commitment under that Revolving Facility. 25.2.2 A transfer of obligations will be effective only if either: (A) the obligations are novated in accordance with Clause 25.3 (Procedure for novations); or (B) the New Bank confirms to the Agent and, if applicable, the relevant Swingline Agent(s) and the Parent that it undertakes to be bound by the terms of this Agreement as a Bank in form and substance satisfactory to the Agent and, if applicable, the relevant Swingline Agent(s) and the Parent. On the transfer becoming effective in this manner the Existing Bank shall be relieved of its obligations under this Agreement to the extent that they are transferred to the New Bank. 25.2.3 On each occasion an Existing Bank assigns, transfers or novates any of its rights and/or obligations under this Agreement (other than to an Affiliate), the New Bank shall, on the date the assignment, transfer and/or novation takes effect, pay to the Agent for its own account a fee of £2,500. 25.2.4 An Existing Bank is not responsible to a New Bank for: (A) the execution, genuineness, validity, enforceability or sufficiency of any Finance Document or any other document; 78 (B) the collectability of amounts payable under any Finance Document; or (C) the accuracy of any statements (whether written or oral) made in connection with any Finance Document. 25.2.5 Each New Bank confirms to the Existing Bank and the other Finance Parties that it: (A) has made its own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in connection with its participation in this Agreement and has not relied exclusively on any information provided to it by the Existing Bank in connection with any Finance Document; and (B) will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities while any amount is or may be outstanding under this Agreement or any Commitment is in force. 25.2.6 Nothing in any Finance Document obliges an Existing Bank to: (A) accept a re-transfer from a New Bank of any of the rights and/or obligations assigned, transferred or novated under this Clause 25.2; or (B) support any losses incurred by the New Bank by reason of the non- performance by any Obligor of its obligations under this Agreement or otherwise. 25.2.7 If: (A) a Bank assigns, transfers, novates or sub-participates any of its rights and/or obligations under this Agreement or changes its Facility Office; and (B) as a result of circumstances existing at the date the assignment, transfer, novation, sub-participation or change occurs, an Obligor would be obliged to make a payment to the New Bank or Bank acting through its new Facility Office under Clause 10 (Taxes) or Clause 12 (Increased Costs), then the New Bank or Bank acting through its new Facility Office is only entitled to receive payment under Clause 10 (Taxes) and Clause 12 (Increased Costs)to the same extent as the Existing Bank or Bank acting through its previous Facility Office would have been if the assignment, transfer, novation, sub-participation or change had not occurred. 25.2.8 Any reference in this Agreement to a Bank includes a New Bank but excludes a Bank if no amount is or may be owed to or by it under this Agreement and its Commitment has been cancelled or reduced to nil. 25.3 Procedure for novations 25.3.1 A novation is effected if: (A) the Existing Bank and the New Bank deliver to the Agent and, if applicable, the relevant Swingline Agent(s) a duly completed certificate (a "Novation Certificate"), substantially in the form of Part A of Schedule 4 (Forms of Accession Documents), with such amendments as the Agent and, if applicable, the relevant Swingline Agent(s) approve to achieve a substantially similar effect (which may be delivered by fax and confirmed by delivery of a hard copy original but the fax will be effective irrespective of whether confirmation is received); and (B) the Agent and, if applicable, the relevant Swingline Agent(s) (except if the novation is to an Existing Bank or an Affiliate of the Existing Bank or any other Bank) execute it. The Agent and, if applicable, the relevant Swingline Agent(s) shall only be obliged to execute a Novation Certificate 79 delivered to it by the Existing Bank and the New Bank once it is satisfied it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to the transfer to such New Bank. 25.3.2 Each Party (other than the Existing Bank, the New Bank and the Parent) irrevocably authorises the Agent and, if applicable, the relevant Swingline Agent(s) to execute any duly completed Novation Certificate on its behalf. 25.3.3 To the extent that they are expressed to be the subject of the novation in the Novation Certificate: (A) the Existing Bank and the other Parties (the "Existing Parties") will be released from their obligations to each other (the "discharged obligations"); (B) the New Bank and the Existing Parties will assume obligations towards each other which differ from the discharged obligations only insofar as they are owed to or assumed by the New Bank instead of the Existing Bank; (C) the rights of the Existing Bank against the Existing Parties and vice versa (the "discharged rights") will be cancelled; and (D) the New Bank and the Existing Parties will acquire rights against each other which differ from the discharged rights only insofar as they are exercisable by or against the New Bank instead of the Existing Bank, all on the date of execution of the Novation Certificate by the Agent and, if applicable, the relevant Swingline Agent(s), the Existing Party, the New Bank and the Parent or, if later, the date specified in the Novation Certificate. 25.3.4 If the effective date of a novation (other than a novation by an Existing Bank to an Affiliate) is after the date a Request is received by the Agent and, if applicable, the relevant Swingline Agent(s) but before the date the requested Advance is disbursed to the relevant Borrower, the Existing Bank shall be obliged to participate in that Advance in respect of its discharged obligations notwithstanding that novation, and the New Bank shall reimburse the Existing Bank for its participation in that Advance and all interest and fees thereon up to the date of reimbursement (in each case to the extent attributable to the discharged obligations) within three Business Days of the Utilisation Date of that Advance. 25.4 Security over Bank's Rights A Bank may, without consulting with or obtaining consent from any Obligor, at any time charge to, assign to, or otherwise create a Security Interest in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance Document to secure obligations of that Bank to a federal reserve, central bank or any authorised government body, except that no such charge, assignment or Security Interest shall: 25.4.1 release a Bank from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment or Security Interest for the Bank as party to any of the Finance Documents; or 25.4.2 affect the obligations of the Obligors under the Finance Documents or require any payments to be made by an Obligor other than or in excess of, or grant to any person any more extensive rights than, those required to be made or granted to the relevant Bank under the Finance Documents. 25.5 Pro rata interest settlement 25.5.1 If an Administrative Party has notified the Banks that it is able to distribute interest payments on a "pro rata basis" to Existing Banks and New Banks then (in respect of any transfer pursuant to Clause 25.2 (Transfers by Banks) or a novation 80 pursuant to Clause 25.3 (Procedure for novations) the date on which the transfer or novation effective (the "Transfer Date") of which, in each case, is after the date of such notification and is not on a Term End Date): (A) any interest or fees in respect of the relevant participation which are expressed to accrue by reference to the lapse of time shall continue to accrue in favour of the Existing Bank up to but excluding the Transfer Date (the "Accrued Amounts") and shall become due and payable to the Existing Bank (without further interest accruing on them) on the Term End Date of the current Term (or, if the Term is longer than six months, on the next of the dates which falls at six monthly intervals after the first day of that Term); and (B) the rights assigned or transferred by the Existing Bank will not include the right to the Accrued Amounts so that, for the avoidance of doubt: (1) when the Accrued Amounts become payable, those Accrued Amounts will be payable for the account of the Existing Bank; and (2) the amount payable to the New Bank on that date will be the amount which would, but for the application of this Clause 25.5, have been payable to it on that date, but after deduction of the Accrued Amounts. 25.5.2 In this Clause 25.5, references to "Term" shall be construed to include a reference to any other period for accrual of fees. 25.6 Additional Borrowers 25.6.1 If the Parent wishes one of its wholly-owned Subsidiaries incorporated in the jurisdiction of incorporation of any Original Borrower (and in respect of the Original Borrower incorporated in the United States, references to its "jurisdiction of incorporation" shall be a reference to the US State of Delaware) to become an Additional Borrower, then it may (if the Majority Banks and the Administrative Parties have approved the identity of the Additional Borrower in writing) deliver to the Agent the documents listed in Part B of Schedule 2 (Conditions Precedent Documents). 25.6.2 On delivery of a Borrower Accession Agreement, executed by the relevant Subsidiary and the Parent, the Subsidiary concerned will become an Additional Borrower. However, it may not submit a Request until the Agent confirms to the other Finance Parties and the Parent that it has received all the documents referred to in Clause 25.6.1 above in form and substance satisfactory to it. 25.6.3 Delivery of a Borrower Accession Agreement, executed by the relevant Subsidiary and the Parent, constitutes confirmation by that Subsidiary that the representations and warranties set out in Clause 15 (Representations and Warranties), except for Clause 15.8 (Litigation), Clause 15.9 (Material adverse change), Clause 15.10 (Accounts) and Clause 15.11 (Sanctions and Anti-Bribery and Corruption), deemed to be made by it on the date of the Borrower Accession Agreement are correct, as if made with reference to the facts and circumstances then existing. 25.7 Bank Retirement 25.7.1 Without prejudice to Clause 25.12 (Replacement of a Defaulting Bank), the Parent may, at any time whilst an Event of Default is not continuing, require a Bank to retire from the Facilities by giving at least ten Business Days' notice to the Administrative Parties and the relevant Bank. 25.7.2 If the Parent has given its prior written consent to such retirement (which consent may be withheld in the Parent's absolute discretion), a Bank may retire from the Facilities by giving at least ten Business Days' notice to each of the Administrative Parties and the Parent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;81 25.7.3 On expiry of a notice (a "Retirement Notice") given pursuant to Clause 25.7.1 or 25.7.2 above then, at the Parent's option: (A) (1) the Commitment of the relevant Bank shall be automatically cancelled; (2) each Borrower shall repay any Advances made to it by the relevant Bank together with all accrued interest on the amount repaid, all accrued commitment fees on the cancelled Commitment, and any other amounts payable by it to that Bank under this Agreement (including under Clause 22.2.3 (Other indemnities)); and (3) (upon payment of the amounts referred to in paragraph (2) above) the relevant Bank shall cease to be a Party to this Agreement and shall cease to have any rights or obligations hereunder (other than in respect of any amounts referred to in paragraph (2) above subsequently required by a court of competent jurisdiction to be repaid by the relevant Bank to any person); or (B) the relevant Bank shall novate to another bank or financial institution selected by the Parent its Commitment and the Advances made by it in accordance with Clause 25.3 (Procedure for novations). 25.7.4 Any Retirement Notice is irrevocable once given. 25.8 Register The Agent, acting for this purpose as an agent of each Borrower, shall maintain at one of its offices a copy of each transfer effected pursuant to Clause 25.2 (Transfers by Banks) and a register for the recordation of the names and Facility Offices of the Banks, and the Commitment of, and principal amount (and stated interest) of the Advances owing to, each Bank pursuant to the terms hereof from time to time (the "Register"). The entries in the Register shall be conclusive, and the Borrowers, the Agent and the Banks shall treat each person whose name is recorded in the Register pursuant to the terms hereof as a lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrowers and any Bank, at any reasonable time and from time to time upon reasonable prior notice. 25.9 Affiliates of Banks 25.9.1 Each Bank may fulfil its obligations in respect of any Advance through an Affiliate (a "Designated Entity") if: (A) the relevant Affiliate is specified in this Agreement as a Bank and is further specified in Column 5 of Part B of Schedule 1 (Banks and Commitments) as a Designated Entity or becomes a Bank by means of a Novation Certificate in accordance with this Agreement; and (B) the Advances in which that Affiliate will participate are specified in Column 6 of Part B of Schedule 1 (Banks and Commitments) or in a notice given by that Bank to the Agent and the Borrowers. In this event, the Bank and the Affiliate will participate in Advances in the manner provided for in paragraph (B) above. 25.9.2 If Clause 25.9.1 above applies, the Bank and its Affiliate will be treated as having a single Commitment and a single vote, but, for all other purposes, will be treated as separate Banks. 25.9.3 If: 82 (A) a Bank designates a Designated Entity in accordance with Clause 25.9.1; and (B) as a result of circumstances existing at the date of the designation an Obligor would be obliged to make a payment to the Designated Entity under Clause 10 (Taxes) or Clause 12 (Increased Costs), then the Designated Entity is only entitled to receive payment under Clause 10 (Taxes) and Clause 12 (Increased Costs) to the same extent as the Bank would have been if the designation had not occurred. 25.10 Increase 25.10.1 The Parent may by giving prior written notice to the Agent after the effective date of a cancellation of: (A) the Available Commitments of a Defaulting Bank in accordance with Clause 7.6 (Right of cancellation in relation to a Defaulting Bank); or (B) the Commitments of a Bank in accordance with Clause 13.1 (Illegality), request that the Total Revolving Facility A Commitments and/or Total Revolving Facility B Commitments (as applicable) be increased (and the Total Commitments shall be so increased) in an aggregate amount under each relevant Revolving Facility in Sterling of up to the amount of the Available Commitments or Commitments so cancelled under that Revolving Facility as follows: (1) the increased Total Commitments will be assumed by one or more Banks or other banks or financial institutions (each an "Increase Bank") selected by the Parent (each of which shall not be a member of the Group and which is acceptable to the Agent (acting reasonably)), and each of which confirms its willingness to assume and does assume all the obligations of a Bank corresponding to that part of the increased Commitments which it is to assume, as if it had been an Original Bank; (2) each Obligor and any Increase Bank shall assume obligations towards one another and/or acquire rights against one another as that Obligor and the Increase Bank would have assumed and/or acquired had the Increase Bank been an Original Bank; (3) each Increase Bank shall become a Party as a "Bank" and any Increase Bank and each of the other Finance Parties shall assume obligations towards one another and acquire rights against one another as that Increase Bank and those Finance Parties would have assumed and/or acquired had the Increase Bank been an Original Bank; and (4) the Commitments of the other Banks shall continue in full force and effect. 25.10.2 An increase in the Total Commitments will only be effective on: (A) the execution by the Agent and, if applicable, the relevant Swingline Agent(s) of an Increase Confirmation from the relevant Increase Bank; (B) in relation to an Increase Bank which is not a Bank immediately prior to the relevant increase, the performance by the Agent and, if applicable, the relevant Swingline Agent(s) of all necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to the assumption of the increased Commitments by that Increase Bank, the completion of which the Agent shall promptly notify to the Parent and the Increase Bank; and (C) any increase in the Total Commitments shall take effect on the date specified by the Parent in the notice referred to in Clause 25.10.1 above 83 or any later date on which the conditions set out in this Clause 25.10.2 are satisfied. 25.10.3 Each Increase Bank, by executing the Increase Confirmation, confirms (for the avoidance of doubt) that the Agent and, if applicable, the relevant Swingline Agent(s) have authority to execute on its behalf any amendment or waiver that has been approved by or on behalf of the relevant Bank or Banks in accordance with this Agreement on or prior to the date on which the increase becomes effective. 25.10.4 Unless the Agent otherwise agrees or the increased Commitment is assumed by an Existing Bank, the Obligors shall, on the date upon which the increase takes effect, pay to the Agent (for its own account) a fee of £2,000 and the Obligors shall promptly on demand pay the Agent the amount of all costs and expenses (including legal fees) reasonably incurred by it in connection with any increase in Commitments under this Clause 25.10. 25.10.5 Clauses 25.2.4 to 25.2.6 (both inclusive) (Transfers by Banks), shall apply mutatis mutandis in this Clause 25.10 in relation to an Increase Bank as if references in that Clause to: (A) an "Existing Bank" were references to all the Banks immediately prior to the relevant increase; (B) the "New Bank" were references to that "Increase Bank"; and (C) a "re-transfer" and "re-assignment" were references to respectively a "transfer" and "assignment". 25.11 Disenfranchisement of a Bank 25.11.1 For so long as a Disenfranchised Bank (as such term is defined in Clause 19.1.3 (Commitment fee)) has any Available Commitment, in ascertaining the Majority Banks or whether any given percentage has been obtained to approve any request for a consent, waiver, amendment or other vote under the Finance Documents, that Disenfranchised Bank's Commitments will be reduced by the amount of its Available Commitments. 25.11.2 For the purposes of this Clause 25.11, the Agent may assume that the following Banks are Disenfranchised Banks: (A) any Bank which has notified the Agent that it has become a Disenfranchised Bank; and (B) any Bank in relation to which it is aware that any of the events or circumstances referred to in paragraph (a), (b) or (c) of the definition of "Defaulting Bank" has occurred and, in so far as such event or circumstance relates to paragraph (c) of the definition of "Defaulting Bank", it has received a notice of cancellation from the Parent in respect of that Bank pursuant to Clause 7.6 (Right of cancellation in relation to a Defaulting Bank), unless it has received notice to the contrary from the Bank concerned (together with any supporting evidence reasonably requested by the Agent) or the Agent is otherwise aware that the Bank has ceased to be a Disenfranchised Bank. 25.12 Replacement of a Defaulting Bank 25.12.1 Without prejudice to Clause 25.7 (Bank Retirement), the Parent may, at any time a Bank has become and continues to be a Defaulting Bank, by giving five Business Days' prior written notice to the Agent and such Bank: (A) replace such Bank by requiring such Bank to (and such Bank shall) transfer pursuant to this Clause 25 (Changes to the Parties) all (and not part only) of its rights and obligations under this Agreement; or 84 (B) require such Bank to (and such Bank shall) transfer pursuant to this Clause 25 (Changes to the Parties) all (and not part only) of the undrawn Commitments of the Bank, to a Bank or other bank or financial institution (a "Replacement Bank") selected by the Parent, and which (unless the Agent is an Impaired Agent) is acceptable to the Agent (acting reasonably), which confirms its willingness to assume and does assume all the obligations or all the relevant obligations of the transferring Bank (including the assumption of the transferring Bank's participations or unfunded participations (as the case may be) on the same basis as the transferring Bank) for: (C) in respect the Primary Term Rate, a purchase price in cash, payable at the time of transfer, equal to the outstanding principal amount of such Bank's participation in the outstanding Advances and all accrued but unpaid interest, any amounts payable under Clause 22.2 (Other indemnities) and any other amounts payable in relation thereto under the Finance Documents; and (D) in respect of an Advance denominated in Sterling or US Dollars, a purchase price in cash consisting of: (1) an amount (payable on the date of the transfer) equal to the outstanding principal amount of such Bank's participation in the outstanding Advances and other amounts payable in relation thereto under the Finance Documents (other than those described in paragraph (2) below); and (2) in relation to each Term in which that transfer occurs, an amount (payable on the last day of that Term) equal to such Bank's share of the interest payable under this Agreement in respect of that participation and that Term (determined on a pro rata basis by reference to the total amount of that interest) and the proportion borne by: (a) the number of days in that Term up to but excluding the day of that transfer; to (b) the total number of days in that Term. 25.12.2 The Agent may in its absolute discretion (and is authorised by each Finance Party, but is not obliged by the Obligors, to) execute, without requiring any further consent or action from any other Party, a Novation Certificate on behalf of any Defaulting Bank which is required to transfer its rights and obligations under this Agreement pursuant to this Clause 25.12 which shall be effective for the purposes of Clause 25.3 (Procedure for novations). The Agent shall not be liable in any way for any action taken by it pursuant to this Clause 25.12 and, for the avoidance of doubt, the provisions of Clause 18.7 (Exoneration) shall apply in relation thereto. 25.12.3 Any transfer of rights and obligations of a Defaulting Bank pursuant to this Clause 25.12 shall be subject to the following conditions: (A) neither the Agent nor the Defaulting Bank shall have any obligation to the Obligors to find a Replacement Bank; (B) the transfer must take place no later than seven days after the notice referred to in Clause 25.12.1 above; and (C) in no event shall the Defaulting Bank be required to pay or surrender to the Replacement Bank any of the fees received by the Defaulting Bank pursuant to the Finance Documents. 25.12.4 For the avoidance of doubt, the rights of the Obligors under Clause 25.7 (Bank Retirement) and Clause 25.12 (Replacement of a Defaulting Bank) are without

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85 prejudice to each other and the rights under each Clause are capable of being exercised independently of each other by the Obligors. 26. CONFIDENTIALITY OF FUNDING RATES 26.1 Confidentiality and disclosure 26.1.1 The Agent and each Obligor agree to keep each Funding Rate confidential and not to disclose it to anyone, save to the extent permitted by Clauses 26.1.2 and 26.1.3 below. 26.1.2 The Agent may disclose: (A) any Funding Rate to the relevant Borrower pursuant to Clause 8.8 (Notifications); and (B) any Funding Rate to any person appointed by it to provide administration services in respect of one or more of the Finance Documents to the extent necessary to enable such service provider to provide those services if the service provider to whom that information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Agent and the relevant Lender. 26.1.3 The Agent and each Obligor may disclose any Funding Rate to: (A) any of its Affiliates and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives if any person to whom that Funding Rate is to be given pursuant to this paragraph (A) is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of that Funding Rate or is otherwise bound by requirements of confidentiality in relation to it; (B) any person to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation if the person to whom that Funding Rate is to be given is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Agent or the relevant Obligor, as the case may be, it is not practicable to do so in the circumstances; (C) any person to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes if the person to whom that Funding Rate is to be given is informed in writing of its confidential nature and that it may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Agent or the relevant Obligor, as the case may be, it is not practicable to do so in the circumstances; and (D) any person with the consent of the relevant Bank. 26.1.4 Nothing in this Clause 26 prohibits any individual from communicating or disclosing information regarding suspected violations of laws, rules, or regulations 86 to a governmental, regulatory, or self-regulatory authority without any notification to any person. 27. DISCLOSURE OF INFORMATION AND KNOW YOUR CUSTOMER REQUIREMENTS 27.1 Disclosure of information A Bank may disclose: 27.1.1 a copy of any Finance Document; and 27.1.2 any information which that Bank has acquired under or in connection with any Finance Document, to: 27.1.3 any of its Affiliates and any of its or their officers, directors, employees, professional advisers and auditors to the extent necessary in connection with the Facilities; 27.1.4 any person with whom it is proposing to enter, or has entered into, any kind of transfer, novation, participation or other agreement in relation to this Agreement; 27.1.5 a federal reserve, central bank or any authorised government body to whom a Bank is charging to, assigning to or otherwise creating a Security Interest in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance Document under Clause 25.4 (Security over Bank's Rights); or 27.1.6 any person to whom it is required to disclose such information under any law or regulation or by any taxation or regulatory authority, provided that a Bank shall not disclose any such information to a person under: (A) Clause 27.1.3 above unless such person is informed of its confidential nature and that some or all of such information may be price-sensitive information and such person is subject to professional obligations to maintain the confidentiality of the information or is otherwise bound by requirements of confidentiality in relation to such information; and (B) Clause 27.1.4 above (other than one of its Affiliates) unless that person has provided to that Bank a confidentiality undertaking addressed to that Bank and the Parent substantially in the form of Schedule 5 (Form of Confidentiality Undertaking) or such other form as the Parent may approve. 27.2 Disclosure to numbering service providers 27.2.1 Any Finance Party may disclose to any national or international numbering service provider appointed by that Finance Party to provide identification numbering services in respect of this Agreement, the Facilities and/or one or more Obligors the following information: (A) names of Obligors; (B) country of domicile of Obligors; (C) place of incorporation of Obligors; (D) Signing Date; (E) governing law of this Agreement; (F) the names of the Agent, the US$ Swingline Agent, the Euro Swingline Agent and the Arrangers; (G) date of each amendment and restatement of this Agreement, if applicable; (H) amounts of, and names of the Facilities (and any tranches); 87 (I) amount of Total Commitments; (J) currencies of the Facilities; (K) type of Facilities; (L) ranking of Facilities; (M) Final Maturity Date of the Facilities; (N) changes to any of the information previously supplied pursuant to paragraphs (A) to (M) above; and (O) such other information agreed between such Finance Party and the Parent, to enable such numbering service provider to provide its usual syndicated loan numbering identification services. 27.2.2 The Parties acknowledge and agree that each identification number assigned to this Agreement, the Facilities and/or one or more Obligors by a numbering service provider and the information associated with each such number may be disclosed to users of its services in accordance with the standard terms and conditions of that numbering service provider. 27.3 Know your Customer requirements 27.3.1 Each Obligor must promptly on the request of any Finance Party supply to that Finance Party any documentation or other evidence which is reasonably requested by that Finance Party (whether for itself, on behalf of any Finance Party or any prospective new Bank) to enable a Finance Party or prospective New Bank to carry out and be satisfied with the results of all applicable know your customer requirements. 27.3.2 Each Bank must promptly on the request of the relevant Administrative Party supply to such Administrative Party any documentation or other evidence which is reasonably required by such Administrative Party to carry out and be satisfied with the results of all applicable know your customer requirements. 27.4 Additional disclosure permission 27.4.1 Nothing in any Finance Document shall prevent disclosure of any information or other matter to the extent that preventing that disclosure would otherwise cause any transaction contemplated by the Finance Documents or any transaction carried out in connection with any transaction contemplated by the Finance Documents to become an arrangement described in Part II A 1 of Annex IV of Directive 2011/16/EU. 27.4.2 Nothing in this Clause 27 prohibits any individual from communicating or disclosing information regarding suspected violations of laws, rules, or regulations to a governmental, regulatory, or self-regulatory authority without any notification to any person. 28. SET-OFF Whilst an Event of Default is continuing, a Finance Party may set off any matured obligation owed by an Obligor under this Agreement (to the extent beneficially owned by that Finance Party) against any obligation (whether or not matured) owed by that Finance Party to that Obligor, regardless of the place of payment, booking branch or currency of either obligation. If the obligations are in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off. If either obligation is unliquidated or unascertained, the Finance Party may set off in an amount estimated by it in good faith to be the amount of that obligation. 88 29. PRO RATA SHARING 29.1 Redistribution If any amount owing by an Obligor under this Agreement to a Finance Party (the "recovering Finance Party") is discharged by payment, set-off or any other manner other than in accordance with Clause 9 (Payments) (a "recovery"), then: 29.1.1 the recovering Finance Party shall, within three Business Days, notify details of the recovery to the Agent or the Swingline Agent (as applicable); 29.1.2 the Agent or the Swingline Agent (as applicable) shall determine whether the recovery is in excess of the amount which the recovering Finance Party would have received had the recovery been received and distributed in accordance with Clause 9 (Payments); 29.1.3 subject to Clause 29.3 (Exception), the recovering Finance Party shall, within three Business Days of demand by the Agent or the Swingline Agent (as applicable) pay to the Agent or the Swingline Agent (as applicable) an amount (the "redistribution") equal to the excess; 29.1.4 the Agent or the Swingline Agent (as applicable) shall treat the redistribution as if it were a payment by the Obligor concerned under Clause 9 (Payments) and shall pay the redistribution to the Finance Parties (other than the recovering Finance Party) in accordance with Clause 9.8 (Partial payments); and 29.1.5 after payment of the full redistribution, the recovering Finance Party will be subrogated to the portion of the claims paid under Clause 29.1.4 above, and that Obligor will owe the recovering Finance Party a debt which is equal to the redistribution, immediately payable and of the type originally discharged. 29.2 Reversal of redistribution If under Clause 29.1 (Redistribution): 29.2.1 a recovering Finance Party must subsequently return a recovery, or an amount measured by reference to a recovery, to an Obligor; and 29.2.2 the recovering Finance Party has paid a redistribution in relation to that recovery, each Finance Party shall, within three Business Days of demand by the recovering Finance Party through the Agent or the Swingline Agent (as applicable), reimburse the recovering Finance Party all or the appropriate portion of the redistribution paid to that Finance Party. Thereupon the subrogation in Clause 29.1.5 (Redistribution) will operate in reverse to the extent of the reimbursement. 29.3 Exception A recovering Finance Party need not pay a redistribution to the extent that it would not, after the payment, have a valid claim against the Obligor concerned in the amount of the redistribution pursuant to Clause 29.1.5 (Redistribution). 30. SEVERABILITY If a provision of any Finance Document is or becomes illegal, invalid or unenforceable in any jurisdiction, that shall not affect: 30.1.1 the legality, validity or enforceability in that jurisdiction of any other provision of the Finance Documents; or 30.1.2 the legality, validity or enforceability in other jurisdictions of that or any other provision of the Finance Documents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;89 31. COUNTERPARTS Each Finance Document may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document. 32. NOTICES 32.1 Giving of notices Subject to Clause 32.3 (Electronic communications), all notices or other communications under or in connection with this Agreement shall be given in writing. Any such notice will be deemed to be given as follows: 32.1.1 if in writing, when delivered; and 32.1.2 if by email or any other electronic communication, when received. However, a notice given in accordance with the above but received on a non-business day or after 5 pm in the place of receipt will only be deemed to be given on the next business day in that place. 32.2 Addresses for notices 32.2.1 The address (and email address, where specified) (and the department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with the Finance Documents is: (A) in the case of the Parent, that identified with its name below; (B) in the case of each Bank or any other Obligor: (1) that notified in writing to the Agent on or prior to the date on which it becomes a Party; or (2) such other address notified by that Party for this purpose to the Agent by not less than five Business Days' notice; and (C) in the case of the Agent, that identified with its name below. 32.2.2 The address of the Agent is: HSBC Bank plc Issuer Services, Level 14 8 Canada Square London E14 5HQ Contact: Issuer Services/Loan Agency Email: lag.fax@hsbcib.com (for Borrower operational requests only), lad.agency.pef.loans@hsbc.com (all other enquiries) or such other address as the Agent may notify to the other Parties by not less than five Business Days' notice. 32.2.3 The address and email address of the US$ Swingline Agent are: HSBC Bank USA, N.A. Issuer Services 66 Hudson Boulevard East New York, New York 10001 Attention: Loan Agency Email: ctlany.loanagency@us.hsbc.com With a copy to: HSBC Bank plc Issuer Services, Level 14 90 8 Canada Square London E14 5HQ Contact: Issuer Services/Loan Agency Email: lag.fax@hsbcib.com (for Borrower operational requests only), lad.agency.pef.loans@hsbc.com (all other enquiries) or such other address or email address as the US$ Swingline Agent may notify to the other Parties by not less than five Business Days' notice. 32.2.4 The address and email address of the Euro Swingline Agent are: HSBC Bank plc Issuer Services, Level 14 8 Canada Square London E14 5HQ Contact: Issuer Services/Loan Agency Email: lag.fax@hsbcib.com (for Borrower operational requests only), lad.agency.pef.loans@hsbc.com (all other enquiries) or such other as the Euro Swingline Agent may notify to the other Parties by not less than five Business Days' notice. 32.2.5 The address and email address of the Parent are: British American Tobacco p.l.c. Globe House 4 Temple Place London WC2R 2PG Contact: The Group Treasurer Email: Corporate_Finance_Financial_Risk@bat.com or such other address or email address as the Parent may notify to the other Parties by not less than five Business Days' notice. 32.2.6 Notices to be served on an Obligor other than the Parent shall be validly served on such Obligor by being addressed in accordance with Clause 32.2.5 above and marked as served on the Parent on behalf of the relevant Obligor. 32.2.7 The Agent shall, promptly upon request from any Party, give to that Party the address and email address of any other Party applicable at the time for the purposes of this Clause 32.2. 32.3 Electronic communications 32.3.1 Any communication to be made between any two Parties under or in connection with the Finance Documents may be made by email or other electronic means (including, without limitation, by way of posting to a secure website) if those two Parties: (A) notify each other in writing of their email address and/or any other information required to enable the transmission of information by that means; and (B) notify each other of any change to their email address or any other such information supplied by them by not less than five Business Days' notice. 32.3.2 Any such electronic communication as specified in Clause 32.3.1 above to be made between an Obligor and a Finance Party may only be made in that way to the extent that those two Parties agree that, unless and until notified to the contrary, this is to be an accepted form of communication. 32.3.3 Any such electronic communication as specified in Clause 32.3.1 above made between any two Parties will be effective only when actually received (or made 91 available) in readable form and in the case of any electronic communication made by a Party to the Agent or the Swingline Agent (as applicable) only if it is addressed in such a manner as the Agent shall specify for this purpose. 32.3.4 Any reference in a Finance Document to a communication being sent or received shall be construed to include that communication being made available in accordance with this Clause 32.3. 32.4 Communications when Agent is an Impaired Agent If the Agent or the Swingline Agent (as applicable) is an Impaired Agent, the Parties may, instead of communicating with each other through the Agent or the Swingline Agent (as applicable), communicate with each other directly and (while the Agent or the Swingline Agent (as applicable) is an Impaired Agent) all the provisions of the Finance Documents which require communications to be made or notices to be given to or by the Agent or the Swingline Agent (as applicable) shall be varied so that communications may be made and notices given to or by the relevant Parties directly. This provision shall not operate after a replacement Agent or the Swingline Agent (as applicable) has been appointed. 33. LANGUAGE 33.1.1 Any notice given under or in connection with any Finance Document shall be in English. 33.1.2 All other documents provided under or in connection with any Finance Document shall be: (A) in English; or (B) if not in English, accompanied by a certified English translation and, in this case, the English translation shall prevail unless the document is a statutory or other official document. 34. JURISDICTION 34.1 Submission For the benefit of each other Party, each Party agrees that the courts of England have exclusive jurisdiction to settle any disputes in connection with any Finance Document (including a dispute relating to the existence, validity or termination of any Finance Document or any non-contractual obligations arising out of or in connection with any Finance Document) and accordingly submits to the jurisdiction of the English courts. 34.2 Service of process Without prejudice to any other mode of service, each Obligor (other than an Obligor incorporated in England and Wales): 34.2.1 irrevocably appoints the Parent as its agent for service of process relating to any proceedings before the English courts in connection with any Finance Document (and the Parent accepts this appointment); 34.2.2 agrees that failure by a process agent to notify the Obligor of the process will not invalidate the proceedings concerned; and 34.2.3 consents to the service of process relating to any such proceedings by prepaid posting of a copy of the process to its address for the time being applying under Clause 32.2 (Addresses for notices). 34.3 Forum convenience and enforcement abroad Each Party: 34.3.1 waives objection to the English courts on grounds of inconvenient forum or otherwise as regards proceedings in connection with a Finance Document; and 92 34.3.2 agrees that a judgment or order of an English court in connection with a Finance Document is conclusive and binding on it and may be enforced against it in the courts of any other jurisdiction. 35. WAIVER OF TRIAL BY JURY EACH PARTY WAIVES ANY RIGHT IT MAY HAVE TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION IN CONNECTION WITH ANY FINANCE DOCUMENT OR ANY TRANSACTION CONTEMPLATED BY ANY FINANCE DOCUMENT. THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO TRIAL BY THE COURT. 36. GOVERNING LAW This Agreement and any dispute or claim arising out of or in connection with it or its subject matter, existence, negotiation, validity, termination or enforceability (including any non- contractual disputes or claims) shall be governed by and construed in accordance with English law. 37. US PATRIOT ACT Each Finance Party that is subject to the requirements of the (ii) the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56 (commonly known as the USA Patriot Act) (the USA Patriot Act) and/or (ii) 31 C.F.R. § 1010.230 (commonly known as the Beneficial Ownership Regulation) (the Beneficial Ownership Regulation), hereby notifies each Obligor that pursuant to the requirements of the USA Patriot Act and/or the Beneficial Ownership Regulation, as applicable, it is required to obtain, verify and record information that identifies the Obligors, which information includes the name and address of the Obligors and other information that will allow such Finance Party to identify the Obligors in accordance with the USA Patriot Act and/or the Beneficial Ownership Regulation, as applicable. Each Obligor agrees that it will provide each Finance Party with such information as it may reasonably request in order for such Finance Party to satisfy the requirements of the USA Patriot Act and/or the Beneficial Ownership Regulation, as applicable. 38. CONTRACTUAL RECOGNITION OF BAIL-IN Notwithstanding any other term of any Finance Document or any other agreement, arrangement or understanding between the Parties, each Party acknowledges and accepts that any liability of any Party to any other Party under or in connection with the Finance Documents may be subject to Bail-In Action by the relevant Resolution Authority and acknowledges and accepts to be bound by the effect of: 38.1.1 any Bail-In Action in relation to any such liability, including (without limitation): (A) a reduction, in full or in part, in the principal amount, or outstanding amount due (including any accrued but unpaid interest) in respect of any such liability; (B) a conversion of all, or part of, any such liability into shares or other instruments of ownership that may be issued to, or conferred on, it; and (C) a cancellation of any such liability; and 38.1.2 a variation of any term of any Finance Document to the extent necessary to give effect to any Bail-In Action in relation to any such liability. 39. RECOGNITION OF THE U.S. SPECIAL RESOLUTION REGIMES 39.1 To the extent that the Finance Documents provide support, through a guarantee or otherwise, for any agreement or instrument that is a QFC (such support, "QFC Credit Support" and each such QFC a "Supported QFC"), the Parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall

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93 Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the "U.S. Special Resolution Regimes") in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Finance Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States): 39.1.1 in the event that any Bank that is a Covered Entity and a party to a Supported QFC becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer from such Bank of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support and any rights in property securing such Supported QFC or such QFC Credit Support), will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States; 39.1.2 in the event that any Bank is a Covered Entity or a BHC Act Affiliate of such Bank is a Covered Entity and becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Finance Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Bank are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Finance Documents were governed by the laws of the United States or a state of the United States; and 39.1.3 without limitation of the foregoing, rights and remedies of the parties with respect to a Defaulting Bank shall in no event affect the rights of any Covered Entity with respect to a Supported QFC or any QFC Credit Support. 39.2 For the purposes of this Clause 39: 39.2.1 "BHC Act Affiliate" has the meaning assigned to the term "affiliate" in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k); 39.2.2 "Covered Entity" means any of the following: (A) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §252.82(b); (B) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §47.3(b); or (C) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §382.2(b); 39.2.3 "Default Right" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable; and 39.2.4 "QFC" has the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. 53900(c)(8)(D). THIS AGREEMENT has been entered into on the date stated at the beginning of this Agreement. SIGNATORIES TO THE FACILITIES AGREEMENT ORIGINAL BORROWERS BRITISH AMERICAN TOBACCO P.L.C. By: /s/ Tadeu Marroco Name: Tadeu Marroco B.A.T. INTERNATIONAL FINANCE P.L.C. By: /s/ Daniel Wong Name: Daniel Wong B.A.T. NETHERLANDS FINANCE B.V. By: /s/ Judith Bollen Name: Judith Bollen B.A.T. CAPITAL CORPORATION By: /s/ Timothy Derr Name: Timothy Derr [Signature Page to the Facilities Agreement] GUARANTOR BRITISH AMERICAN TOBAACO P.L.C. By: /s/ Tadeu Marroco Name: Tadeu Marroco [Signature Page to the Facilities Agreement] MANDATED LEAD ARRANGERS AND BOOKRUNNERS BARCLAYS BANK PLC By: /s/ Samuel Coward Name: Samuel Coward [Signature Page to the Facilities Agreement]

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HSBC BANK PLC By: /s/ Saul Thomas Name: Saul Thomas [Signature Page to the Facilities Agreement] BANCO BILBAO VIZCAYA ARGENTARIA, S.A., LONDON BRANCH By: /s/ Brian Clark Name: Brian Clark By: /s/ Pedro Garrido Name: Pedro Garrido [Signature Page to the Facilities Agreement] BANK OF AMERICA EUROPE DESIGNATED ACTIVITY COMPANY By: /s/ David Burnett Name: David Burnett [Signature Page to the Facilities Agreement] BANK OF CHINA LIMITED, LONDON BRANCH By: /s/ Martin Collard Name: Martin Collard By: /s/ Zhijian Pan Name: Zhijian Pan [Signature Page to the Facilities Agreement]

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CAIXABANK S.A., UNITED KINGDOM BRANCH By: /s/ Brodie Luke Feaver Name: Brodie Luke Feaver By: /s/ Sergi Periago Name: Sergi Periago [Signature Page to the Facilities Agreement] CITIBANK, N.A. LONDON BRANCH By: /s/ Shirley Riches Name: Shirley Riches [Signature Page to the Facilities Agreement] COMMERZBANK AKTIENGESELLSCHAFT, LONDON BRANCH By: /s/ Mathew Ward Name: Mathew Ward By: /s/ Thomas Bush Name: Thomas Bush [Signature Page to the Facilities Agreement] DEUTSCHE BANK AG, LONDON BRANCH By: /s/ Rishi Bajaj Name: Rishi Bajaj By: /s/ Harriet Baker Name: Harriet Baker [Signature Page to the Facilities Agreement]

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GOLDMAN SACHS BANK USA By: /s/ Alana Jacobs Name: Alana Jacobs [Signature Page to the Facilities Agreement] LLOYDS BANK PLC By: /s/ Martin Mactavish Name: Martin Mactavish [Signature Page to the Facilities Agreement] MIZUHO BANK, LTD. By: /s/ Duncan Todd Name: Duncan Todd [Signature Page to the Facilities Agreement] MUFG BANK, LTD. By: /s/ Edd McKee Name: Edd McKee [Signature Page to the Facilities Agreement]

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NATIONAL WESTMINSTER BANK PLC By: /s/ Peter Huish Name: Peter Huish [Signature Page to the Facilities Agreement] BANCO SANTANDER S.A., LONDON BRANCH By: /s/ Asuncion Gonzalez Name: Asuncion Gonzalez By: /s/ Anissa Louiba Name: Anissa Louiba [Signature Page to the Facilities Agreement] SMBC BANK INTERNATIONAL PLC By: /s/ Martin Kennedy Name: Martin Kennedy By: /s/ Masandri Hzsazumz Name: Masandri Hzsazumz [Signature Page to the Facilities Agreement] STANDARD CHARTERED BANK By: /s/ Kathleen Alpguner Name: Kathleen Alpguner [Signature Page to the Facilities Agreement]

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WELLS FARGO BANK, N.A., LONDON BRANCH By: /s/ K.A. White Name: K.A. White [Signature Page to the Facilities Agreement] LEAD ARRANGERS EMIRATES NBD BANK (P.J.S.C), LONDON BRANCH By: /s/ Raashed Amin Name: Raashed Amin By: /s/ Pardeep Singh Name: Pardeep Singh [Signature Page to the Facilities Agreement] RAIFFEISEN BANK INTERNATIONAL AG By: /s/ Ingrid Rosenwirth Name: Ingrid Rosenwirth By: /s/ Nina Breltschopt Name: Nina Breltschopt [Signature Page to the Facilities Agreement] THE STANDARD BANK OF SOUTH AFRICA LIMITED, ISLE OF MAN BRANCH By: /s/ Darren Weymouth Name: Darren Weymouth [Signature Page to the Facilities Agreement]

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ORIGINAL BANKS BARCLAYS BANK PLC By: /s/ Samuel Coward Name: Samuel Coward [Signature Page to the Facilities Agreement] HSBC BANK PLC By: /s/ Saul Thomas Name: Saul Thomas [Signature Page to the Facilities Agreement] BANCO BILBAO VIZCAYA ARGENTARIA, S.A., LONDON BRANCH By: /s/ Brian Clark Name: Brian Clark By: /s/ Pedro Garrido Name: Pedro Garrido [Signature Page to the Facilities Agreement] BANK OF AMERICA EUROPE DESIGNATED ACTIVITY COMPANY By: /s/ Donato Di Lonardo Name: Donato Di Lonardo [Signature Page to the Facilities Agreement]

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BANK OF AMERICA, N.A., LONDON BRANCH By: /s/ Sharon Pandji Name: Sharon Pandji [Signature Page to the Facilities Agreement] BANK OF AMERICA, N.A. By: /s/ Myrna F. Green Name: Myrna F. Green [Signature Page to the Facilities Agreement] BANK OF CHINA LIMITED, LONDON BRANCH By: /s/ Martin Collard Name: Martin Collard By: /s/ Zhijian Pan Name: Zhijian Pan [Signature Page to the Facilities Agreement] CAIXABANK S.A., UNITED KINGDOM BRANCH By: /s/ Brodie Luke Feaver Name: Brodie Luke Feaver By: /s/ Sergi Periago Name: Sergi Periago [Signature Page to the Facilities Agreement]

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CITIBANK, N.A. LONDON BRANCH By: /s/ Shirley Riches Name: Shirley Riches [Signature Page to the Facilities Agreement] CITIBANK, N.A. NEW YORK BRANCH By: /s/ Changying Cathy Huang Name: Changying Cathy Huang [Signature Page to the Facilities Agreement] COMMERZBANK AKTIENGESELLSCHAFT, LONDON BRANCH By: /s/ Mathew Ward Name: Mathew Ward By: /s/ Thomas Bush Name: Thomas Bush [Signature Page to the Facilities Agreement] DEUTSCHE BANK AG, LONDON BRANCH By: /s/ Rishi Bajaj Name: Rishi Bajaj By: /s/ Harriet Baker Name: Harriet Baker [Signature Page to the Facilities Agreement]

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GOLDMAN SACHS BANK USA By: /s/ Alana Jacobs Name: Alana Jacobs [Signature Page to the Facilities Agreement] LLOYDS BANK PLC By: /s/ Martin Mactavish Name: Martin Mactavish [Signature Page to the Facilities Agreement] MIZUHO BANK, LTD. By: /s/ Duncan Todd Name: Duncan Todd [Signature Page to the Facilities Agreement] MUFG BANK, LTD. By: /s/ Edd McKee Name: Edd McKee [Signature Page to the Facilities Agreement]

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NATIONAL WESTMINSTER BANK PLC By: /s/ Peter Huish Name: Peter Huish [Signature Page to the Facilities Agreement] BANCO SANTANDER S.A., LONDON BRANCH By: /s/ Asuncion Gonzalez Name: Asuncion Gonzalez By: /s/ Anissa Louiba Name: Anissa Louiba [Signature Page to the Facilities Agreement] SMBC BANK INTERNATIONAL PLC By: /s/ Martin Kennedy Name: Martin Kennedy By: /s/ Masanori Hzsazumi Name: Masanori Hzsazumi [Signature Page to the Facilities Agreement] STANDARD CHARTERED BANK By: /s/ Kathleen Alpguner Name: Kathleen Alpguner [Signature Page to the Facilities Agreement]

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STANDARD CHARTERED BANK, ACTING THROUGH ITS NEW YORK BRANCH By: /s/ Brendan Heneghan Name: Brendan Heneghan [Signature Page to the Facilities Agreement] WELLS FARGO BANK, N.A., LONDON BRANCH By: /s/ K. A. White Name: K. A. White [Signature Page to the Facilities Agreement] EMIRATES NBD BANK (P.J.S.C), LONDON BRANCH By: /s/ Raashed Amin Name: Raashed Amin By: /s/ Pardeep Singh Name: Pardeep Singh [Signature Page to the Facilities Agreement] RAIFFEISEN BANK INTERNATIONAL AG By: /s/ Ingrid Rosenwirth Name: Ingrid Rosenwirth By: /s/ Nina Breitschopt Name: Nina Breitschopt [Signature Page to the Facilities Agreement]

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THE STANDARD BANK OF SOUTH AFRICA LIMITED, ISLE OF MAN BRANCH By: /s/ Darren Weymouth Name: Darren Weymouth [Signature Page to the Facilities Agreement] AGENT HSBC BANK PLC By: /s/ Andrea Fordyce Name: Andrea Fordyce [Signature Page to the Facilities Agreement] US$ SWINGLINE AGENT HSBC BANK USA, N.A. By: /s/ Ershad Sattar Name: Ershad Sattar [Signature Page to the Facilities Agreement] EURO SWINGLINE AGENT HSBC BANK PLC By: /s/ Andrea Fordyce Name: Andrea Fordyce [Signature Page to the Facilities Agreement]

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## Exhibit 4.22

![](ex422_ccaa001.jpg)

Court File No.: CV-19-616077-00CL ONTARIO SUPERIOR COURT OF JUSTICE (COMMERCIAL LIST) IN THE MATTER OF THE COMPANIES' CREDITORS ARRANGEMENT ACT, RSC 1985, c C-36, AS AMENDED AND IN THE MATTER OF A PLAN OF COMPROMISE OR ARRANGEMENT OF IMPERIAL TOBACCO CANADA LIMITED AND IMPERIAL TOBACCO COMPANY LIMITED APPLICANTS FOURTH AMENDED AND RESTATED COURT-APPOINTED MEDIATOR'S AND MONITOR'S CCAA PLAN OF COMPROMISE AND ARRANGEMENT PURSUANT TO THE COMPANIES' CREDITORS ARRANGEMENT ACT concerning, affecting and involving IMPERIAL TOBACCO CANADA LIMITED AND IMPERIAL TOBACCO COMPANY LIMITED AUGUST 27, 2025 Page 1 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL Exhibit 4.22 **TABLE OF CONTENTS** Page ARTICLE 1. INTERPRETATION ............................................................................................. 1 1.1 Definitions ............................................................................................................. 1 1.2 Certain Rules of Interpretation ............................................................................ 52 1.3 Governing Law and Jurisdiction ......................................................................... 53 1.4 Schedules ............................................................................................................. 53 ARTICLE 2. PURPOSE AND EFFECT OF THE CCAA PLAN ............................................ 55 2.1 Purpose ................................................................................................................ 55 2.2 Exclusion of Alternative Products from CCAA Plan .......................................... 55 ARTICLE 3. CLAIMS PROCEDURE, CLASSIFICATION OF AFFECTED CREDITORS, VOTING, PROCEDURE FOR SANCTION HEARING AND RELATED MATTERS .......................................................................................................... 55 3.1 Claims Procedure ................................................................................................ 55 3.1.1 CCAA Court Hearing regarding Claims Procedure ............................ 55 3.1.2 Claims Procedure for Negative Notice Claims ................................... 56 3.1.3 Claims Procedure for Persons, other than Claimants or Individual Claimants, to assert a Claim .............................................. 57 3.1.3.1 Notification Procedure ....................................................... 57 3.1.3.2 Miscellaneous Claims Bar Date ......................................... 58 3.1.3.3 Monitor's Role for Purposes of the Meeting and the Vote .............................................................................. 58 3.2 Classification of Creditors ................................................................................... 59 3.3 Meeting of Affected Creditors ............................................................................ 60 3.4 Approval by Creditors ......................................................................................... 60 3.5 Voting of the Affected Creditor Class ................................................................. 60 3.6 Unaffected Creditors ........................................................................................... 60 3.7 Treatment of Unaffected Claims ......................................................................... 61 3.8 Extinguishment of Claims ................................................................................... 61 3.9 Guarantees and Similar Covenants ...................................................................... 61 3.10 Procedure for Sanction Hearing .......................................................................... 61 3.10.1 CCAA Court Hearing regarding Procedure for Sanction Hearing ...... 61 3.10.2 Omnibus Sanction Hearing Notice ...................................................... 62 3.10.3 Omnibus Sanction Hearing Notice Program ....................................... 62 3.10.4 Sanction Hearing ................................................................................. 63 ARTICLE 4. RESTRUCTURING STEPS ............................................................................... 63 4.1 Transfer of Alternative Products Business to Newco ......................................... 63 4.2 Restructuring Steps .............................................................................................. 64 4.3 Corporate Approvals ........................................................................................... 65 Page 2 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL ii ARTICLE 5. CCAA PLAN CONSIDERATION ..................................................................... 65 5.1 Global Settlement Amount .................................................................................. 65 5.2 Intentionally deleted............................................................................................ 65 5.3 Global Settlement Trust Account and Supplemental Trust Account .................. 65 5.4 Upfront Contributions ......................................................................................... 66 5.5 Reserved Amounts .............................................................................................. 67 5.6 Annual Contributions .......................................................................................... 68 5.7 Exclusion of Alternative Products from Metric .................................................. 70 5.8 Contribution Period ............................................................................................. 70 5.9 Several Liability .................................................................................................. 70 5.10 No Admission of Liability ................................................................................... 70 5.11 Retention/Transfer of Cash ................................................................................. 71 5.12 Transparency of Payments by Tobacco Companies ............................................ 71 5.13 Contribution Security .......................................................................................... 72 5.14 Parent and Tobacco Company Group Support through Intercompany Transactions ........................................................................................................ 72 5.15 Payment of Intercompany Claims ....................................................................... 73 ARTICLE 6. ADMINISTRATION OF THE GLOBAL SETTLEMENT AMOUNT ............. 74 6.1 Allocation of the Global Settlement Amount ...................................................... 74 6.2 Expert Evidence supporting Provincial HCCR Claims and Territorial HCCR Claims and Provincial and Territorial Allocation ................................... 74 6.3 Expert Evidence supporting the Pan-Canadian Claimants' Compensation Plan ............................................................................................. 74 6.4 Consideration for Settlement of Knight Class Action ......................................... 74 6.5 Investment of Contributions and Reserved Amounts pending Disbursement ........................................................................................ 74 ARTICLE 7. ESTABLISHMENT AND ADMINISTRATION OF QUEBEC CLASS ACTION ADMINISTRATION PLAN ................................................. 75 7.1 Purpose of the Quebec Administration Plan ....................................................... 75 7.2 Quebec Administration Plan is subject to the Approval of the CCAA Court ..... 76 7.3 Release of Cash Security Deposits ...................................................................... 76 7.4 QCAP Trust Accounts ......................................................................................... 77 7.5 Payment of QCAP Cy-près Contribution to Cy-près Trust Account .................. 77 7.6 No Solicitation of Blais Class Members ............................................................. 77 ARTICLE 8. ESTABLISHMENT AND ADMINISTRATION OF PAN-CANADIAN CLAIMANTS' COMPENSATION PLAN ......................................................... 78 8.1 Purpose of the PCC Compensation Plan ........................................................... 778 8.2 PCC Compensation Plan ..................................................................................... 79 8.3 PCC Trust Accounts ............................................................................................ 80 8.4 No Solicitation of Pan-Canadian Claimants ........................................................ 80 Page 3 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL iii ARTICLE 9. ESTABLISHMENT AND ADMINISTRATION OF THE CY-PRÈS FOUNDATION ................................................................................................... 80 9.1 Purpose of the Cy-près Foundation ..................................................................... 80 9.2 Funding the Cy-près Foundation ......................................................................... 81 9.3 Cy-près Foundation Terms of Reference ............................................................ 82 9.4 CCAA Court Approval of Establishment of Cy-près Foundation (in the period after the Sanction Hearing and prior to Final Approval of the Cy-près Foundation) ................................................................................. 85 9.5 Appointment of Board of Directors and Chair of Cy-près Foundation (in the period after the Sanction Hearing and prior to Final Approval of the Cy-près Foundation) ................................................................................. 86 9.6 Process for soliciting and selecting proposals for funding by the Cy-près Foundation ....................................................................................... 86 9.7 Reporting by approved recipients of distributions from the Cy-près Fund ......... 88 9.8 Reporting by Cy-près Foundation to CCAA Plan Administrators and CCAA Court................................................................................................. 88 9.9 Role of the CCAA Plan Administrators and the CCAA Court ........................... 88 9.10 Term of Operation of Cy-près Foundation .......................................................... 89 ARTICLE 10. INFORMATION TO BE PROVIDED DURING THE CONTRIBUTION PERIOD ............................................................................................................. 89 10.1 Annual Business Plans ........................................................................................ 89 10.2 Quarterly and Annual Information ...................................................................... 90 10.2.1 Annual Financial Information ............................................................ 90 10.2.2 Information to be provided by Imperial in Annual MD&A ................................................................................... 92 10.2.3 Information to be provided by Imperial in Quarterly MD&A ............................................................................... 92 10.3 Other Information to be provided by Imperial .................................................... 92 10.4 Access to Imperial's Management ...................................................................... 92 10.5 Procedure for Provinces and Territories to request Information from Imperial ............................................................................................................. 92 10.6 Procedure for Impacted Claimants to request Information from Imperial ............................................................................................................. 94 10.7 Confidentiality of Information ............................................................................ 95 10.8 Information and Certification to be provided by Imperial regarding Annual Contributions and Reserved Amounts ................................... 95 10.9 Timing of Imperial's Delivery of Business Plan, Financial Statements and MD&A to CCAA Plan Administrators ..................................... 96 10.10 Virtual Data Rooms and NDAs ........................................................................... 96 ARTICLE 11. COVENANTS AND OTHER PAYMENT ASSURANCE ................................ 97 11.1 Covenants ............................................................................................................ 97 11.2 Ordinary Course Operational Activities ............................................................ 100 Page 4 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv 11.3 CapEx Thresholds ............................................................................................. 101 11.4 Ordinary Course Divestitures Thresholds ......................................................... 101 ARTICLE 12. EVENTS OF DEFAULT, BREACHES AND REMEDIES ............................. 101 12.1 Aggrieved Parties in Dispute Resolution .......................................................... 101 12.2 Events of Default ............................................................................................... 102 12.3 Cure of Events of Default .................................................................................. 105 12.4 Breach of CCAA Plan ....................................................................................... 105 12.5 Recourse against Parent ..................................................................................... 106 12.6 Waiver of Events of Default and Breaches ....................................................... 107 ARTICLE 13. DISPUTE RESOLUTION PROCEDURE ........................................................ 107 13.1 Procedure for Dispute Resolution ..................................................................... 107 13.2 Investigation of Events causing a Material Adverse Effect .............................. 107 13.3 Resolution of Breaches by Parties ..................................................................... 108 13.4 Resolution of Breaches by Arbitrator ................................................................ 108 13.4.1 Notice of Arbitration ......................................................................... 108 13.4.2 Appointment of an Arbitrator ............................................................ 109 13.5 Jurisdiction of Arbitrator ................................................................................... 110 13.6 Arbitration Remedies ........................................................................................ 110 13.7 Enforcement of Arbitrator's Awards ................................................................. 111 13.8 Costs of Arbitration ........................................................................................... 111 13.9 Jurisdiction of CCAA Court .............................................................................. 111 13.10 Appeals from Orders or Decisions of CCAA Court .......................................... 112 13.11 Resolution of Events of Default by CCAA Court ............................................. 112 ARTICLE 14. CCAA PLAN ADMINISTRATORS ................................................................ 113 14.1 Appointment of CCAA Plan Administrators .................................................... 113 14.2 Role of CCAA Plan Administrators .................................................................. 113 14.3 Trustees of the Imperial Global Settlement Trust Account, Imperial PCC Trust Account, Imperial QCAP Trust Account, Imperial Cy-près Trust Account, c.................................................................... 114 14.4 Duties and Responsibilities of CCAA Plan Administrators .............................. 114 14.5 CCAA Plan Administrators' Communications ................................................. 117 14.6 Distributions to Claimants from Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account ................................................................................. 118 14.7 Advisors to CCAA Plan Administrator ............................................................. 118 14.8 Role of Court-Appointed Mediator after Sanction Order ................................. 119 14.9 Payment of Costs ............................................................................................... 119 ARTICLE 15. IMPERIAL CCAA PLAN ADMINISTRATION RESERVE AND IMPERIAL PCC COMPENSATION PLAN RESERVE ................................. 121 15.1 Imperial CCAA Plan Administration Reserve .................................................. 121 Page 5 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL v 15.2 Imperial PCC Compensation Plan Reserve ....................................................... 121 ARTICLE 16. CLAIMANT ALLOCATION ........................................................................... 122 16.1 Claimant Allocation .......................................................................................... 122 16.2 Explanatory Notes ............................................................................................. 123 16.3 Provincial and Territorial Allocation ................................................................ 125 ARTICLE 17. DISTRIBUTIONS, PAYMENTS AND CURRENCY ..................................... 126 17.1 Distributions Generally ..................................................................................... 126 17.2 Payment of Claimants' Claims .......................................................................... 127 17.3 Payment of Miscellaneous Claims .................................................................... 127 17.4 Payment of Claims secured by the Administration Charge .............................. 127 17.5 Payment of Claims secured by the Court-Appointed Mediator Charge ............ 127 17.6 Method of Distribution ...................................................................................... 127 17.7 Addresses for Distribution ................................................................................. 127 17.8 Withholding Rights ........................................................................................... 128 17.9 Cancellation of Certificates and Notes, etc. ...................................................... 128 17.10 Calculations ....................................................................................................... 128 17.11 Currency Matters ............................................................................................... 128 ARTICLE 18. RELEASES, MISCELLANEOUS CLAIMS, INJUNCTIONS AND DISPOSITION OF PENDING PROCEEDINGS ............................................. 129 18.1 CCAA Plan Releases ......................................................................................... 129 18.1.1 Consideration for Release ................................................................. 129 18.1.2 Release .............................................................................................. 129 18.1.3 Claimant Contractual Release ........................................................... 130 18.1.4 Release of Monitors .......................................................................... 130 18.1.5 Release of Court-Appointed Mediator .............................................. 131 18.1.6 Release of Administrative Coordinator ............................................. 132 18.1.7 Indemnity of Monitors, CCAA Plan Administrators, Foreign Representative, Court-Appointed Mediator and Administrative Coordinator ........................................................................................ 132 18.1.8 Injunctions ......................................................................................... 133 18.1.9 Released Parties' Fulfillment of Obligations pursuant to Definitive Documents ....................................................................... 134 18.1.10 Releases are Final and Binding ......................................................... 134 18.1.11 CCAA Meeting Orders and Sanction Orders .................................... 134 18.1.12 Future Legislation ............................................................................. 136 18.2 Treatment of Miscellaneous Claims .................................................................. 136 18.2.1 Miscellaneous Claims Fund .............................................................. 136 18.2.2 Determination of Miscellaneous Claims ........................................... 137 18.2.3 Leave required from CCAA Court to bring a Miscellaneous Claim Proceeding .............................................................................. 137 18.2.4 Payment from Miscellaneous Claims Fund ...................................... 138 Page 6 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL vi 18.2.5 Distribution of any Residual Monies from Miscellaneous Claims Fund ...................................................................................... 138 18.2.6 Sole Recourse for Miscellaneous Claims .......................................... 138 18.3 Disposition of Pending Proceedings .................................................................. 139 18.3.1 Termination of Pending Litigation other than Quebec Class Actions ........................................................................ 139 18.3.2 Disposition of Quebec Class Actions ................................................ 140 ARTICLE 19. COURT SANCTION, CONDITIONS PRECEDENT AND CCAA PLAN IMPLEMENTATION ....................................................................................... 141 19.1 Application for Sanction Order ......................................................................... 141 19.2 Sanction Order ................................................................................................... 141 19.3 Conditions Precedent to Implementation of CCAA Plan .................................. 146 19.4 Monitor's Certificate – Plan Implementation .................................................... 149 ARTICLE 20. GENERAL ........................................................................................................ 149 20.1 Binding Effect ................................................................................................... 149 20.2 Deeming Provisions ........................................................................................ 1450 20.3 Interest and Fees .............................................................................................. 1509 20.4 Modification of the CCAA Plan ........................................................................ 150 20.5 Paramountcy ...................................................................................................... 151 20.6 Severability of CCAA Plan Provisions ............................................................. 151 20.7 Transition Period – Responsibilities and Protections of FTI as Monitor and CCAA Plan Administrator ........................................................... 152 20.8 Transition Period – Responsibilities and Protections of the Court-Appointed Mediator................................................................................ 152 20.9 Miscellaneous Claims Bar Date ........................................................................ 153 20.10 Different Capacities ........................................................................................... 153 20.11 Notices ........................................................................................................... 153 20.12 Further Assurances ............................................................................................ 154 20.13 Language ........................................................................................................... 155 20.14 Acts to Occur on Next Business Day ................................................................ 155 20.15 Non-Consummation of the CCAA Plan ............................................................ 155 20.16 Deemed Waiver of Defaults from Plan Implementation Date .......................... 155 SCHEDULES Schedule "A": Negative Notice Claims Package comprised of Statement of Negative Notice Claim (Schedule "B-1") and the Notice of Dispute of Negative Notice Claim (Schedule "B-2") Schedule "B": Claims Package comprised of Miscellaneous Claims Instruction Letter (Schedule "A-1") and the Miscellaneous Claimant Proof of Claim (Schedule "A-2") Schedule "C": Omnibus Notice Page 7 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL vii Schedule "D": Omnibus Notice Program comprised of condensed version of the Omnibus Notice (Appendix "A") and the list of the regional newspapers in which the Omnibus Notice will be published (Appendix "B") Schedule "E": Contribution Security Agreement Schedule "F": Deed of Movable Hypothec Schedule "G": Harrison Report Schedule "H": Curriculum vitae of Dr. Glenn Harrison Schedule "I": Jha Report Schedule "J": Curriculum vitae of Dr. Prabhat Jha Schedule "K": Quebec Class Action Administration Plan Schedule "L": Overview of Epiq's complex claims administration experience Schedule "M": Curriculum vitae of Daniel Shapiro, K.C. Schedule "N": Pan-Canadian Claimants' Compensation Plan: Methodology and Analysis dated December 5, 2024 Schedule "O": Analysis of Limitations Law applicable to Pan-Canadian Claimants dated September 2, 2020 Schedule "P": Pan-Canadian Claimants' Compensation Plan dated December 5, 2024 Schedule "Q": Resume of Dr. Robert Bell Schedule "R": Curriculum vitae of Dr. Robert Bell Schedule "S": The Cy-près Fund: Methodology and Analysis dated December 5, 2024 Schedule "T": Claimant Contractual Release – ITCAN and ITCO Schedule "U": List of Health Care Costs Recovery Actions of the Provinces and HCCR Claims asserted by Territories Schedule "V": List of Actions commenced under Provincial Class Proceedings Legislation Schedule "W": List of Actions commenced by Individuals Schedule "X": Provincial and Territorial Liaison Committee Terms Page 8 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5 20 cigarettes a day for 12 years (20 X 365 X 12 = 87,600) or 30 cigarettes a day for 8 years (30 X 365 X 8 = 87,600) or 10 cigarettes a day for 24 years (10 X 365 X 24 = 87,600); (2) To have been diagnosed before March 12, 2012 with: (a) Lung cancer or (b) Cancer (squamous cell carcinoma) of the throat, that is to say of the Larynx, the Oropharynx or the Hypopharynx or (c) Emphysema. The group also includes the Heirs of the persons deceased after November 20, 1998 who satisfied the criteria mentioned herein. "Blais Eligibility Criteria" means the criteria set out in the certified class definition in the Blais Class Action which a person must meet to be eligible to receive a Compensation Payment as a Blais Class Member. "Blais Judgment" means the judgment rendered by the Honourable Justice Brian Riordan on May 27, 2015 as rectified on June 9, 2015, and the judgment of the Court of Appeal of Quebec dated March 1, 2019 in the class action commenced in the Quebec Superior Court in Court File No. 500- 06-00076-980 (Conseil québécois sur le tabac et la santé et Jean-Yves Blais c. Imperial Tobacco Ltée, Rothmans, Benson & Hedges Inc. et JTI-MacDonald Corp.). "BMO" means BMO Trust Company. "Breach" has the meaning given in Article 12, Section 12.4. "Business Day" means a day other than a Saturday, Sunday, or statutory or civic holiday in the Province of Ontario. "Business Plan" has the meaning given in Article 10, Section 10.1. "Canada" means His Majesty in right of Canada. "Canada Newco" has the meaning given in Article 11, Section 11.1(h). "CapEx" has the meaning given in Article 10, Section 10.1(b). "CapEx Thresholds" has the meaning given in Article 11, Section 11.3. "Carry Amount" has the meaning given in the definition of Reserved Amount. "Cash" means cash, certificates of deposit, bank deposits, term deposits, guaranteed investment certificates, cheques, commercial paper, treasury bills and other cash equivalents. Page 13 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 6 "Cash Management Bank" means any Person that is providing cash management services to Imperial under the Cash Management System, as defined in the Initial Order. "Cash Management Bank Claim" means the Claim of any Cash Management Bank in connection with the provision of cash management services to Imperial under the Cash Management System pursuant to the Initial Order. "Cash Security Deposits" means, collectively, (i) in the case of Imperial, the cash and interest, if any, deposited by ITCAN as suretyship pursuant to the Order of the Quebec Court of Appeal dated October 27, 2015; and (ii) in the case of RBH, the cash and interest, if any, deposited by RBH as suretyship pursuant to the Order of the Quebec Court of Appeal dated October 27, 2015, and "Cash Security Deposit" means any of them. "Cash Security Deposits Order" means the order of the Court of Appeal of Quebec dated July 29, 2025, ordering the Minister of Finance of Quebec to release to the Trustees the Cash Security Deposits which shall be deposited into the Imperial Global Settlement Trust Account and the RBH Global Settlement Trust Account, as applicable, as such order may be amended, restated or varied from time to time. "CCAA" means the Companies' Creditors Arrangement Act, RSC 1985, c C-36, as amended. "CCAA Charges" means, collectively, the Administration Charge, Court-Appointed Mediator Charge, Sales and Excise Tax Charge and Directors' Charge, as each term is defined in the Initial Order, as amended and restated, or any subsequent order in the CCAA Proceeding. "CCAA Court" means the Ontario Superior Court of Justice (Commercial List) at Toronto. "CCAA Plan", or "Plan", means the Court-Appointed Mediator's and Monitor's plan of compromise and arrangement pursuant to the CCAA concerning, affecting and involving Imperial, including all Schedules thereto. "CCAA Plan Administrators" has the meaning given in Article 14, Section 14.1, and "CCAA Plan Administrator" means FTI in respect of Imperial. "CCAA Plan Administrator Appointment Order" means the order of the CCAA Court dated March 6, 2025 appointing FTI to serve, as an officer of the CCAA Court, in the capacity of CCAA Plan Administrator of the CCAA Plan in respect of Imperial and, among other things, setting out the rights, powers and obligations of the CCAA Plan Administrator in connection with such appointment, as such order may be amended, restated or varied from time to time. "CCAA Plans" means, collectively, the Court-Appointed Mediator's and Monitor's plans of compromise and arrangement pursuant to the CCAA concerning, affecting and involving each of Imperial, RBH and JTIM, including all Schedules to each CCAA Plan. "CCAA Proceeding" means, in respect of each Tobacco Company, the proceeding commenced by such Tobacco Company pursuant to the CCAA, namely Application No. CV-19-616077-00CL in respect of Imperial, Application No. CV-19-616779-00CL in respect of RBH, and Application No. CV-19-615862-00CL in respect of JTIM, collectively the "CCAA Proceedings". Page 14 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 7 "Certificate of Plan Completion" has the meaning given in Article 19, Section 19.2(w). "Chapter 15 Proceedings" means the foreign recognition proceedings of ITCAN pursuant to Chapter 15 of the US Bankruptcy Code pending before the US Bankruptcy Court (Case No. 19- 10771(SCC)). "Claimant Allocation" has the meaning given in Article 16, Section 16.1. "Claimant Contractual Release" means the release, in the form attached to the CCAA Plan as Schedule "T", which the Claimants shall provide to the Released Parties that will fully, finally, irrevocably and unconditionally release and forever discharge the Released Parties of and from the Claimants' respective Released Claims, provided that such Claimant Contractual Release shall not release any of the Non-Released Claims. "Claimants" means the Provinces and Territories, Quebec Class Action Plaintiffs, Pan-Canadian Claimants, Knight Class Action Plaintiffs and Tobacco Producers, and "Claimant" means any one of them; provided that, for certainty, only with respect to the Banking Arrangements Order, the Imperial Supplemental Trust Charge, the Collateral Agent Order, the Imperial Collateral Agency Agreement and the Contribution Security, the use of "Claimants" therein shall not include the Knight Class Action Plaintiffs and Tobacco Producers. "Claimants' Representatives" means: (a) Counsel for the Provinces and Territories identified on the Common Service List; (b) Quebec Class Counsel; (c) PCC Representative Counsel; (d) Knight Class Counsel; and (e) Counsel for the Tobacco Producers. "Claims" means any and all manner of requests, demands, complaints, claims (including claims for contribution or indemnity), rights, actions, causes of action, class actions, cross-claims, counterclaims, applications, proceedings, appeals, arbitrations, suits, debts, sums of money, liabilities, accounts, covenants, damages, losses, injuries, judgments, orders (including orders for injunctive relief or specific performance and compliance orders), interest, additional indemnity, expenses, executions, encumbrances, and recoveries on account of any liability, duty, obligation, demand or cause of action of whatever nature, in each case, of any kind, character or nature whatsoever, whether asserted or unasserted, known or unknown, suspected or unsuspected, liquidated or unliquidated, matured or unmatured, contingent or actual, disputed or undisputed, foreseen or unforeseen, and direct, indirect, or derivative, at common law or civil law, in equity, or under statute, and "Claim" means any one of them. "Claims Administrator" means the claims administrator approved and appointed by the CCAA Court to (i) manage the overall administration of the individual claims process and perform all other duties and responsibilities assigned to it in regard to the PCC Compensation Plan, including Page 15 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 8 acting as agent for the PCCs, and (ii) manage the overall administration of the individual claims process and perform all other duties and responsibilities assigned to it in regard to the Quebec Administration Plan. The appointment of Epiq as the Claims Administrator will be upon the recommendation of the Court-Appointed Mediator and the Monitors and subject to the approval of the CCAA Court. "Claims Administrator Order" means the order of the CCAA Court made in the CCAA Proceeding appointing Epiq to serve in the role of Claims Administrator in respect of the PCC Compensation Plan and the Quebec Administration Plan and in the role of PCC Agent in respect of the PCC Compensation Plan, and, among other things, setting out the duties and responsibilities of the Claims Administrator and the PCC Agent in connection with such appointment, as such order may be amended, restated or varied from time to time. "Claims Package" means the documents attached to the Claims Procedure Order as Schedule "A", including the Instruction Letter and the Miscellaneous Claimant Proof of Claim form which are attached as Schedule "B" to the CCAA Plan. "Claims Procedure" means the claims procedure contemplated by the Claims Procedure Order for (i) disputing the value and number of votes attributed to the Affected Claims of the Claimants, and (ii) identifying Miscellaneous Claims for the purpose of voting on the CCAA Plan. "Claims Procedure Order" means the order of the CCAA Court dated October 31, 2024 (including all schedules and appendices thereto) made in the CCAA Proceeding establishing and approving the Claims Procedure in respect of Imperial, and as may be further amended, restated or varied from time to time. "Claims Process" means the process by which PCC-Claimants may assert PCC Claims for Individual Payments as set forth in the PCC Compensation Plan, and the process by which Tobacco-Victim Claimants and Succession Claimants may assert, respectively, Tobacco-Victim Claims and Succession Claims for Compensation Payments as set forth in the Quebec Administration Plan. "Closing Judgment" means the judgment terminating the Blais Class Action and the Létourneau Class Action which will be requested on a motion brought by the Quebec Class Counsel after all Eligible Blais Class Members have been paid their Compensation Payments. "Collateral Agent" means Computershare in its capacity as the collateral agent and hypothecary representative which shall act on behalf and for the benefit of itself and the Claimants under and in relation to the Contribution Security. "Collateral Agent Order" means the order of the CCAA Court made in the CCAA Proceeding in respect of Imperial approving, among other things, (i) the engagement of Computershare to act as the Collateral Agent for and on behalf of itself and the Claimants in respect of the Contribution Security, (ii) the Imperial Collateral Agency Agreement, and (iii) the limitation of liability of the Indemnitees (as defined in the Imperial Collateral Agency Agreement) in connection with the Imperial Collateral Agency Agreement. Page 16 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13 incur no liability in connection with the discharge of his duties and shall continue to have the immunity of a Judge of a Superior Court in Canada. "Fee Schedule" means the trustee services fee schedule attached as a schedule to the Imperial Deed, the Imperial CCAA Plan Administration Reserve Trust Deed and the Imperial Tobacco Supplemental Trust Agreement in accordance with which the Trustees and Bare Trustees shall be paid their reasonable fees and disbursements. "Filing Date" means March 12, 2019. "Final Information Request" has the meaning given in Article 10, Section 10.5(c). "Financially Viable", or "Financial Viability", means the ability of Imperial to meet its obligations to creditors in the Ordinary Course of Business as they come due. "First Annual Global Claims Administration Costs Budget" means (i) the first budget for the PCC Claims Administration, and (ii) the first budget for the QCAP Claims Administration that the Claims Administrator and PCC Agent shall provide to the CCAA Plan Administrators and is subject to the joint approval of the CCAA Court and the Quebec Superior Court in accordance with the terms of the Claims Administrator Order. "First Notice" means the initial notice which the Claims Administrator shall publish regarding the PCC Compensation Plan. "First Notice Date" means the date on which the Claims Administrator publishes the First Notice. "Flow of Funds Agreement" means the agreement to be entered into between the Tobacco Companies and the Claimants that sets out the particulars of (i) the payments, directions and actions that are to be effected prior to the Effective Time, and (ii) the payments and actions that are to be effected at the Effective Time following the delivery of the Plan Implementation Date Certificate in respect of each of the CCAA Plans by the applicable Monitor, as amended, restated or supplemented from time to time pursuant to the terms thereof. "Foreign Representative" means, with respect to the Chapter 15 Proceedings, FTI in its capacity as the foreign representative for ITCAN within the meaning of section 101(24) of the US Bankruptcy Code. "FTI" means FTI Consulting Canada Inc. "GAAS" means Generally Accepted Auditing Standards. "Global Claims Administration Costs Framework" means the framework basis that will be used to review and assess the Costs of the services provided by Epiq in respect of each of (i) the claims administration under the PCC Compensation Plan ("PCC Claims Administration"), (ii) the claims administration under the Quebec Administration Plan ("QCAP Claims Administration"), (iii) the PCC Agent services, (iv) the PCC Notice Plan, (v) the Blais Notice Plan and (vi) the pre- CCAA Plan implementation activities relating to the PCC Compensation Plan. Page 21 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 14 "Global Settlement Amount" has the meaning given in Article 5, Section 5.1. "Government" means any government, including the Provinces, Territories and Canada, and any person, body or entity within such government having or purporting to have jurisdiction on behalf of any nation, province, territory, municipality or state or any other geographic or political subdivision of any of them. "Government Priority Claim" means any Claim of any Government against Imperial in respect of amounts that are outstanding, if any, provided for in section 6(3) of the CCAA. "Governmental Authority" means any government (including the Provinces, Territories and Canada), regulatory authority, governmental department, agency, commission, bureau, official, minister, Crown corporation, court, board, tribunal or dispute settlement panel or other law, rule or regulation-making organization or entity: (i) having or purporting to have jurisdiction on behalf of any nation, province, territory or state or any other geographic or political subdivision of any of them; or (ii) exercising, or entitled or purporting to exercise any administrative, executive, judicial, legislative, policy, regulatory or taxing authority or power. "Harrison Report" means the report of Dr. Glenn Harrison dated March 14, 2024 entitled "The Provincial and Territorial Present Value of Smoking Attributable Expenditures" that is attached to the CCAA Plan as Schedule "G". "HCCR Legislation" means, collectively, the Crown's Right of Recovery Act, SA 2009, c C-35, Part 2, Sections 41-50 only, Tobacco Damages and Health Care Costs Recovery Act, SBC 2000, c 30, The Tobacco Damages and Health Care Costs Recovery Act, SM 2006, c 18, Tobacco Damages and Health Care Costs Recovery Act, SNB 2006, c T-7.5, Tobacco Health Care Costs Recovery Act, SNL 2001, c T-4.2, Tobacco Damages and Health-care Costs Recovery Act, SNS 2005, c 46, Tobacco Damages and Health Care Costs Recovery Act, SNWT 2011, c 33 (proclaimed but not yet in force), Tobacco Damages and Health Care Costs Recovery Act, SNu 2010, c 31 (proclaimed but not yet in force), Tobacco Damages and Health Care Costs Recovery Act, 2009, SO 2009, c 13, Tobacco Damages and Health Care Costs Recovery Act, SPEI 2009, c 22, Tobacco-related Damages and Health Care Costs Recovery Act, 2009, CQLR c R-2.2.0.0.1, and The Tobacco Damages and Health Care Costs Recovery Act, SS 2007, c T-14.2. "Health Care Benefits" means "health care benefits", "health services" or "health care services" as such terms, as applicable, are defined in each of the statutes enumerated in the definition of "HCCR Legislation". "Hypopharynx" means the laryngeal part of the pharynx extending from the hyoid bone to the lower margin of the cricoid cartilage. "Impacted Claimants" means, at any given time during the Contribution Period, all Claimants, other than the Provinces and Territories, who have not yet been paid their full share of the Global Settlement Amount, and "Impacted Claimant" means any one of them. "Imperial" means, collectively, ITCAN and ITCO. Page 22 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 15 "Imperial CCAA Plan Administration Reserve" means the Cash reserve to be established on the Plan Implementation Date prior to any distributions to Affected Creditors of Imperial as authorized by the CCAA Court pursuant to the Sanction Order in respect of Imperial, in the amount of $25.0 million, and to be paid out of the Upfront Contributions of Imperial and deposited from the Imperial Global Settlement Trust Account into the Imperial CCAA Plan Administration Reserve Account for the purpose of remedying any default in payment of any Imperial CCAA Plan Administration Reserve Costs. The Trustees shall hold the Imperial CCAA Plan Administration Reserve in trust for the benefit of those Persons who incur and are entitled to be paid Imperial CCAA Plan Administration Reserve Costs pursuant to the Imperial CCAA Plan in the CCAA Proceeding of Imperial. In aggregate, the Imperial CCAA Plan Administration Reserve, RBH CCAA Plan Administration Reserve and JTIM CCAA Plan Administration Reserve shall total $75.0 million. "Imperial CCAA Plan Administration Reserve Account" means a segregated interest-bearing trust account to be established by the Trustees to hold the Imperial CCAA Plan Administration Reserve on behalf of the beneficiaries thereof. "Imperial CCAA Plan Administration Reserve Costs" means Costs incurred and payments to be made on or after the Plan Implementation Date by Imperial, including Costs incurred prior to the Plan Implementation Date which remain outstanding as of the Plan Implementation Date, in respect of: (a) The Costs of the services which FTI (including its legal, financial, investment or other advisors) provides in connection with the performance of its duties as both the Monitor and the CCAA Plan Administrator under the CCAA Plan, in the CCAA Proceeding and in respect of the ongoing administration of the CCAA Plan, including the fulfillment of its duties and responsibilities enumerated in Article 14, Section 14.4 herein, and as set out in the Sanction Order and the CCAA Plan Administrator Appointment Order; and (b) The Costs of the Court-Appointed Mediator's Ongoing Services which the Court- Appointed Mediator (including his legal counsel and other consultants and advisors) may provide after the date of the Sanction Order, as requested by the Monitor or the CCAA Plan Administrator, or by the CCAA Court, and approved by the CCAA Court pursuant to the CCAA Plan Administrator Appointment Order, the Court-Appointed Mediator's Ongoing Services Direction and the Fee Approval Direction. "Imperial CCAA Plan Administration Reserve Trust" means the trust to be known as "The Imperial CCAA Plan Administration Reserve Trust" that shall be created pursuant to the Imperial CCAA Plan Administration Reserve Trust Deed and into which the Imperial CCAA Plan Administration Reserve shall be deposited. "Imperial CCAA Plan Administration Reserve Trust Deed" means the deed of trust to be entered into between ITCAN as the settlor and BMO as the Original Trustee to create the Imperial CCAA Plan Administration Reserve Trust, as amended, restated or supplemented from time to time pursuant to the terms thereof. Page 23 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 16 "Imperial Collateral Agency Agreement" means the agreement to be entered into between ITCAN, ITCO, Marlboro Canada Limited, John Player & Sons Ltd., Imperial Brands Ltd., Medallion Inc., Cameo Inc. and Imperial Tobacco Products Limited as the debtors, Computershare as the Collateral Agent, the Provinces and Territories, the QCAPs and PCCs, as amended, restated or supplemented from time to time pursuant to the terms thereof. "Imperial Cy-près Trust Account" means a segregated interest-bearing trust account to be established in the Bank by the Trustees to hold Imperial's share of the aggregate Cy-près Fund set out in Article 16 in trust for the benefit of the Cy-près Foundation. The proportionate shares of the Cy-près Fund which the Trustees shall transfer from each of the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account into, respectively, the Imperial Cy-près Trust Account, RBH Cy-près Trust Account and JTIM Cy- près Trust Account shall be equal to: (i) on the Plan Implementation Date, the proportionate shares of the Upfront Contributions made by Imperial, RBH and JTIM; and (ii) in respect of years 2, 3, 4 and 5 following the Plan Implementation Date and any subsequent years until the Cy-près Fund has been paid in full, the proportionate shares of the aggregate Annual Contributions made by Imperial, RBH and JTIM in each of those years. "Imperial Deed" means the deed of trust to be entered into between ITCAN as the settlor and BMO as the Original Trustee to create the Imperial Global Settlement Trust, as amended, restated or supplemented from time to time pursuant to the terms thereof. "Imperial Global Settlement Trust" means the trust to be known as "The Imperial Tobacco Global Settlement Trust" that shall be created pursuant to the Imperial Deed and into which Imperial's Upfront Contributions and Annual Contributions shall be deposited. "Imperial Global Settlement Trust Account" has the meaning given in Article 5, Section 5.3. "Imperial Miscellaneous Claims Fund" means the Cash reserve to be established on the Plan Implementation Date prior to any distributions to Affected Creditors as authorized by the CCAA Court pursuant to the Sanction Order, and to be paid out of the total Upfront Contributions to be made by Imperial and deposited into the Imperial Miscellaneous Claims Fund for the purpose of paying the Miscellaneous Claims of Persons who are found by the CCAA Court to be entitled to be paid their Miscellaneous Claim pursuant to the CCAA Plan. The Trustees shall hold the Imperial Miscellaneous Claims Fund in trust for those Persons who are entitled to be paid their Miscellaneous Claim pursuant to the CCAA Plan. In aggregate, the Imperial Miscellaneous Claims Fund, RBH Miscellaneous Claims Fund and JTIM Miscellaneous Claims Fund shall total $25.0 million. The proportionate shares of the aggregate amount of $25.0 million which Imperial, RBH and JTIM shall deposit, respectively, into the Imperial Miscellaneous Claims Fund, RBH Miscellaneous Claims Fund and JTIM Miscellaneous Claims Fund from their respective Upfront Contribution shall be equal to the proportionate shares of the Upfront Contributions to be made by Imperial, RBH and JTIM. "Imperial PCC Compensation Plan Reserve" means the Cash reserve to be established on the Plan Implementation Date prior to any distributions to Affected Creditors as authorized by the CCAA Court pursuant to the Sanction Order, and to be paid out of the total Upfront Contributions made by Imperial and deposited from the Imperial Global Settlement Trust Account into the Page 24 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21 "Jha Report" means the report of Dr. Prabhat Jha dated March 24, 2021 entitled "Analyses to quantify smoking-attributable conditions that could be compensable and quantification of these conditions for each province and over time from 2003-2019", that is attached to the CCAA Plan as Schedule "I". "JTIM" means JTI-Macdonald Corp. "JTIM CCAA Plan Administration Reserve" means the Cash reserve to be established on the Plan Implementation Date prior to any distributions to Affected Creditors of JTIM as authorized by the CCAA Court pursuant to the Sanction Order in respect of JTIM, in the amount of $25.0 million, and to be paid out of the Upfront Contributions of JTIM and deposited from the JTIM Global Settlement Trust Account into the JTIM CCAA Plan Administration Reserve Account for the purpose of remedying any default in payment of any JTIM CCAA Plan Administration Reserve Costs. The Trustees shall hold the JTIM CCAA Plan Administration Reserve in trust for the benefit of those Persons who incur and are entitled to be paid JTIM CCAA Plan Administration Reserve Costs pursuant to the JTIM CCAA Plan in respect of the CCAA Proceeding in respect of JTIM. In aggregate, the Imperial CCAA Plan Administration Reserve, RBH CCAA Plan Administration Reserve and JTIM CCAA Plan Administration Reserve shall total $75.0 million. "JTIM CCAA Plan Administration Reserve Account" means a segregated interest-bearing trust account to be established by the Trustees to hold the JTIM CCAA Plan Administration Reserve on behalf of the beneficiaries thereof. "JTIM CCAA Plan Administration Reserve Costs" means Costs incurred and payments to be made on or after the Plan Implementation Date by JTIM, including Costs incurred prior to the Plan Implementation Date which remain outstanding as of the Plan Implementation Date, in respect of: (a) The Costs of the services which Deloitte (including its legal, financial, investment or other advisors) provides in connection with the performance of its duties as both the Monitor and the CCAA Plan Administrator under the JTIM CCAA Plan, in the CCAA Proceeding in respect of JTIM, and in respect of the ongoing administration of the JTIM CCAA Plan, including the fulfillment of its duties and responsibilities enumerated in Article 14, Section 14.4 herein, and as set out in the Sanction Order and the CCAA Plan Administrator Appointment Order, in each case in respect of JTIM; and (b) The Costs of the Court-Appointed Mediator's Ongoing Services which the Court- Appointed Mediator (including his legal counsel and other consultants and advisors) may provide after the date of the Sanction Order in respect of JTIM, as requested by the Monitor or the CCAA Plan Administrator in respect of JTIM, or by the CCAA Court, and approved by the CCAA Court pursuant to the CCAA Plan Administrator Appointment Order in respect of JTIM, the Court-Appointed Mediator's Ongoing Services Direction and the Fee Approval Direction. "JTIM CCAA Plan Administration Reserve Trust" means the trust to be known as "The JTIM CCAA Plan Administration Reserve Trust" that shall be created pursuant to the JTIM CCAA Plan Administration Reserve Trust Deed and into which the JTIM CCAA Plan Administration Reserve shall be deposited. Page 29 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 22 "JTIM CCAA Plan Administration Reserve Trust Deed" means the deed of trust to be entered into between JTIM as the settlor and BMO as the Original Trustee to create the JTIM CCAA Plan Administration Reserve Trust, as amended, restated or supplemented from time to time pursuant to the terms thereof. "JTIM Cy-près Trust Account" means a segregated interest-bearing trust account to be established in the Bank by the Trustees to hold JTIM's share of the Cy-près Fund in trust for the benefit of the Cy-près Foundation. The proportionate shares of the Cy-près Fund which the Trustees shall transfer from each of the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account into, respectively, the Imperial Cy-près Trust Account, RBH Cy-près Trust Account and JTIM Cy-près Trust Account shall be equal to: (i) on the Plan Implementation Date, the proportionate shares of the Upfront Contributions made by Imperial, RBH and JTIM; and (ii) in respect of years 2, 3, 4 and 5 following the Plan Implementation Date and any subsequent years until the Cy-près Fund has been paid in full, the proportionate shares of the Annual Contributions made by Imperial, RBH and JTIM in each of those years. "JTIM Deed" means the deed of trust to be entered into between JTIM as the settlor and BMO as the Original Trustee to create the JTIM Global Settlement Trust, as amended, restated or supplemented from time to time pursuant to the terms thereof. "JTIM Global Settlement Trust" means the trust to be known as "The JTIM Global Settlement Trust" that shall be created pursuant to the JTIM Deed and into which JTIM's Upfront Contributions and Annual Contributions shall be deposited. "JTIM Global Settlement Trust Account" has the meaning given in Article 5, Section 5.3. "JTIM Miscellaneous Claims Fund" means the Cash reserve to be established on the Plan Implementation Date prior to any distributions to Affected Creditors of JTIM as authorized by the CCAA Court pursuant to the Sanction Order in respect of JTIM, and to be paid out of the total Upfront Contributions made by JTIM and deposited into the JTIM Miscellaneous Claims Fund for the purpose of paying the Miscellaneous Claims of Persons who are found by the CCAA Court to be entitled to be paid their Miscellaneous Claim pursuant to the JTIM CCAA Plan. The Trustees shall hold the JTIM Miscellaneous Claims Fund in trust for those Persons who are entitled to be paid their Miscellaneous Claim pursuant to the JTIM CCAA Plan. In aggregate, the Imperial Miscellaneous Claims Fund, RBH Miscellaneous Claims Fund and JTIM Miscellaneous Claims Fund shall total $25.0 million. The proportionate shares of the aggregate amount of $25.0 million which Imperial, RBH and JTIM shall deposit, respectively into Imperial Miscellaneous Claims Fund, RBH Miscellaneous Claims Fund and JTIM Miscellaneous Claims Fund from their respective Upfront Contributions shall be equal to the proportionate shares of the Upfront Contributions made by Imperial, RBH and JTIM. "JTIM PCC Compensation Plan Reserve" means the Cash reserve to be established on the Plan Implementation Date prior to any distributions to Affected Creditors as authorized by the CCAA Court pursuant to the Sanction Order, and to be paid out of the total Upfront Contributions made by JTIM and deposited into the JTIM PCC Compensation Plan Reserve Account for the purpose of remedying any default in payment of any PCC Compensation Plan Reserve Costs. The Trustees Page 30 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 23 shall hold the JTIM PCC Compensation Plan Reserve in trust for those Persons who incur and are entitled to be paid PCC Compensation Plan Reserve Costs pursuant to the CCAA Plan. In aggregate, the Imperial PCC Compensation Plan Reserve, RBH PCC Compensation Plan Reserve and JTIM PCC Compensation Plan Reserve shall total $5.0 million. The proportionate shares of the aggregate amount of $5.0 million which each of Imperial, RBH and JTIM shall deposit, respectively, into the Imperial PCC Compensation Plan Reserve Account, RBH PCC Compensation Plan Reserve Account and JTIM PCC Compensation Plan Reserve Account from their respective Upfront Contributions shall be equal to the proportionate shares of the Upfront Contributions made by Imperial, RBH and JTIM. "JTIM PCC Compensation Plan Reserve Account" means a segregated interest-bearing trust account to be established by the Trustees to hold the JTIM PCC Compensation Plan Reserve on behalf of the beneficiaries thereof. "JTIM PCC Trust Account" means a segregated interest-bearing trust account to be established in the Bank by the Trustees to hold JTIM's share of the PCC Compensation Plan Amount in trust for the benefit of the Pan-Canadian Claimants. The proportionate shares of the PCC Compensation Plan Amount which the Trustees shall transfer from each of the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account into, respectively, the Imperial PCC Trust Account, RBH PCC Trust Account and JTIM PCC Trust Account shall be equal to: (i) on the Plan Implementation Date, the proportionate shares of the Upfront Contributions made by Imperial, RBH and JTIM; and (ii) in respect of years 1 and 2 following the Plan Implementation Date and any subsequent years until the PCC Compensation Plan Amount has been paid in full, the proportionate shares of the Annual Contributions made by Imperial, RBH and JTIM in each of those years. "JTIM QCAP Trust Account" means a segregated interest-bearing trust account to be established in the Bank by the Trustees to hold JTIM's share of the QCAP Settlement Amount in trust for the benefit of the Blais Class Members. The proportionate shares of the QCAP Settlement Amount which the Trustees shall transfer from each of the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account into, respectively, the Imperial QCAP Trust Account, RBH QCAP Trust Account and JTIM QCAP Trust Account shall be equal to: (i) on the Plan Implementation Date, the proportionate shares of the Upfront Contributions made by Imperial, RBH and JTIM; and (ii) in year 1 following the Plan Implementation Date and any subsequent years until the QCAP Settlement Amount has been paid in full, the proportionate shares of the Annual Contributions made by Imperial, RBH and JTIM in that year. "JTIM Supplemental Trust" means the bare trust to be known as "The JTIM Supplemental Trust" that shall be created pursuant to the JTIM Supplemental Trust Agreement. "JTIM Supplemental Trust Account" has the meaning given in Article 5, Section 5.3. "JTIM Supplemental Trust Agreement" means the agreement to be entered into between JTIM and the Bare Trustees creating the JTIM Supplemental Trust, as amended, restated or supplemented from time to time pursuant to the terms thereof. Page 31 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 24 "JTIM Supplemental Trust Agreement Funds" means any and all property held at any time by the Bare Trustees pursuant to the JTIM Supplemental Trust Agreement, including the Reserved Amounts and such additional property which JTIM, or other Persons may, in accordance with the CCAA Plan, transfer, assign, convey or deliver to the Bare Trustees to be deposited into the JTIM Supplemental Trust Account, together with income, interest and any other revenues generated thereby or accretions or additions thereto and any property into which any of the foregoing may be converted or exchanged. "JTIM TM" means JTI-Macdonald TM Corp. "Knight Claim" means any Claim that has been advanced, could have been advanced or could be advanced in the following class action, whether before or after the Effective Time: Kenneth Knight v. Imperial Tobacco Canada Limited (Supreme Court of British Columbia, Court File No. L031300), including any such Claim that is a Section 5.1(2) Claim or Section 19(2) Claim. "Knight Class Action" means Kenneth Knight v. Imperial Tobacco Canada Limited (Supreme Court of British Columbia, Court File No. L031300). "Knight Class Action Plaintiffs" means Individuals who meet the criteria of the certified class definition in the Knight Class Action. The fact that an Individual is a Knight Class Action Plaintiff does not thereby disqualify that Individual from being a Pan-Canadian Claimant. "Knight Class Action Plaintiffs Settlement Amount" means the aggregate amount allocated from the Global Settlement Amount to be payable to the Knight Class Action Plaintiffs as set forth in Article 16, Sections 16.1, 16.2 and 16.3 herein. "Knight Class Counsel" means Klein Lawyers LLP. "Knight Class Counsel Fee" means the amount to be determined and approved by the CCAA Court that will be payable from the Knight Class Action Plaintiffs Settlement Amount to the Knight Class Counsel in respect of their fees, disbursements and costs as Knight Class Counsel and any applicable Sales and Excise Taxes payable thereon. The retainer agreement respecting fees and disbursements between the Knight Class Counsel and the representative plaintiffs, as well as the Knight Class Counsel Fee, are subject to the approval of the CCAA Court. "Larynx" means the upper part of the respiratory passage that is bounded above by the glottis and is continuous below with the trachea. "Legal Representative" means an Individual who establishes through the submission to the Claims Administrator of one of the documents listed in the Claim Form for the Legal Representative of a PCC-Claimant that they have the right and are authorized to make a Submitted PCC-Claim on behalf of the PCC-Claimant. "Létourneau Class Action" means the class action commenced on September 30, 1998 by Cecilia Létourneau against ITCAN, RBH and JTIM in the Superior Court of Quebec, District of Montreal, bearing Court File No. 500-06-000070-983. Page 32 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25 "Létourneau Class Members" means Persons who meet the criteria of the following certified class definition in the Létourneau Class Action: All persons residing in Quebec who, as of September 30, 1998, were addicted to the nicotine contained in the cigarettes made by the defendants and who otherwise satisfy the following criteria: (1) They started to smoke before September 30, 1994 and since that date have smoked principally cigarettes manufactured by the defendants; (2) Between September 1 and September 30, 1998, they smoked on a daily basis an average of at least 15 cigarettes manufactured by the defendants; and (3) On February 21, 2005, or until their death if it occurred before that date, they were still smoking on a daily basis an average of at least 15 cigarettes manufactured by the defendants. The group also includes the heirs of the members who satisfy the criteria described herein. "Létourneau Judgment" means the judgment rendered by the Honourable Justice Brian Riordan on May 27, 2015 as rectified on June 9, 2015, and the judgment of the Court of Appeal of Quebec dated March 1, 2019 in the class action commenced in the Quebec Superior Court in Court File No. 500-06-000070-983 (Cecilia Létourneau et al. v. Imperial Tobacco Canada Ltd., et al.). "Lung Cancer" has the meaning given in Article 8, Section 8.1(d)(i). "Material Adverse Effect" means an event or condition that caused or would reasonably be expected to cause a material adverse effect on: (a) The assets and liabilities of ITCAN or ITCO considered as a whole or the use or operation thereof; (b) The business, profits, operations or condition (financial or otherwise) of ITCAN or ITCO; (c) The ability of ITCAN or ITCO to perform their obligations in any material respect under any of the Definitive Documents to which they are parties or by which they are bound; or (d) The Contribution Security. "Material Subsidiary" means, in relation to ITCAN: (a) Any of its Subsidiaries that holds 5% or more of the consolidated assets of ITCAN or contributes 5% or more of the consolidated revenues or net income of ITCAN, or (b) Any of its Subsidiaries that are material to the conduct of ITCAN's business and operations, provided that, without limiting the generality of Subsections (a) and (b), it includes Imperial Tobacco Company Limited. Page 33 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 26 "MD&A" has the meaning given in Article 10, Section 10.2.2. "Meeting" means the meeting of Affected Creditors to be called and held pursuant to the Meeting Order for the purpose of considering and voting on the CCAA Plan, and includes any adjournment, extension, postponement or other rescheduling of such meeting. "Meeting Date" means the date fixed for the Meeting pursuant to the Meeting Order subject to any adjournment or postponement or further order of the CCAA Court. "Meeting Order" means the order of the CCAA Court dated October 31, 2024 directing the calling and holding of the Meeting of Affected Creditors to consider and vote on the CCAA Plan, as such order may be amended, restated or varied from time to time. "Metric" has the meaning given in Article 5, Section 5.6. "Minister of Finance of Quebec" means the Ministre des Finances du Québec, Bureau general de dépôts pour le Québec. "Miscellaneous Claimant Proof of Claim" means the proof of claim form included as part of the Claims Package which is attached to the CCAA Plan as Schedule "B". "Miscellaneous Claims" means, collectively: (a) any Pre-Implementation Miscellaneous Claim; (b) any Section 5.1(2) Claim, in respect of which the Person holding such Claim, or an authorized Person on their behalf, has not executed and delivered, or will not execute and deliver, a Claimant Contractual Release; (c) any Section 19(2) Claim in regard to which the compromise or arrangement in respect of Imperial explicitly provides for the Section 19(2) Claim's compromise, and the Person holding such Claim, or an authorized Person on their behalf, has not voted, or will not vote, for the acceptance of the compromise or arrangement, or otherwise execute and deliver a Claimant Contractual Release; and (d) any other Claim in respect of Imperial (excluding any Unaffected Claim) which is received by the Monitor and asserted against any Released Party based on, arising from or in respect of any conduct, act, omission, transaction, duty, responsibility, indebtedness, liability, obligation, dealing, fact, matter, or occurrence existing or taking place at or prior to the Effective Time (whether or not continuing thereafter) by a Person who asserts that such Claim will not be or, if asserted after the Effective Time, has not been compromised and fully, finally and irrevocably and unconditionally released and forever discharged, and permanently barred and enjoined pursuant to the terms of the CCAA Plan, the Claims Procedure Order, the Sanction Order or any other Order made in the CCAA Proceeding, and in accordance with Article 18, Section 18.2.3 of the CCAA Plan, the CCAA Court grants leave for such Person to bring such Claim for determination on its merits by the CCAA Court. Page 34 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 27 The existence of any such Miscellaneous Claims is not admitted but is expressly denied by Imperial, its Tobacco Company Group and the Claimants. For greater certainty, no Claimant or Individual Claimant may assert a Miscellaneous Claim. "Miscellaneous Claims Amount" has the meaning given in Article 18, Section 18.2.1. "Miscellaneous Claims Bar Date" means 5:00 pm (Eastern Time) on December 5, 2024. "Miscellaneous Claims Fund Period" has the meaning given in Article 18, Section 18.2.1. "Miscellaneous Claims Procedure" means the procedure pursuant to which a Putative Miscellaneous Claimant can assert a Miscellaneous Claim as established in Article 18, Section 18.2 of the CCAA Plan. "Monetary Cure Period" has the meaning given in Article 12, Section 12.3(b). "Monitor" means FTI Consulting Canada Inc. in its capacity as the Court-appointed monitor appointed pursuant to the Initial Order in the CCAA Proceeding. "Monitors" means, collectively, the Court-appointed monitors of the Tobacco Companies in the CCAA Proceedings. "Monthly Actual Costs Reports" means the monthly reports that the Claims Administrator and PCC Agent shall provide to the CCAA Plan Administrators setting out the actual costs incurred, including actual time spent and hourly rates applied, and expenditures made by the Claims Administrator and the PCC Agent during the immediately prior month in regard to each of the PCC Claims Administration, QCAP Claims Administration, PCC Agent, PCC Notice Plan and Blais Notice Plan, in accordance with the terms of the Claims Administrator Order. "Monthly Claims Administration Reports" means the monthly reports, in respect of the month upon which the monthly reports are based, that the Claims Administrator and PCC Agent shall provide to the CCAA Plan Administrators setting out for each of the PCC Compensation Plan and the Quebec Administration Plan the particulars regarding (i) the number of claims received, (ii) the number of claims reviewed, (iii) the number of incomplete claims awaiting submission of further information, (iv) the number of claims approved, (v) the number of claims rejected, (vi) the number of rejected claims that are in the process of being reviewed by the Review Officer, and (vii) the overall status of the claims administration process, in accordance with the terms of the Claims Administrator Order. "Monthly Events Reports" means the monthly reports, in respect of the month upon which the monthly reports are based, that the Claims Administrator and PCC Agent shall provide to the CCAA Plan Administrators identifying and explaining any unusual, unexpected or inexplicable events that occurred and/or out of the ordinary trends that were observed in the PCC Claims Administration and the QCAP Claims Administration to enable the Claims Administrator and/or the PCC Agent, as applicable, to take prompt steps to correct any issues, problems, errors and/or mistakes in the claims administration processes as soon as possible, in accordance with the terms of the Claims Administrator Order. Page 35 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 28 "NDA" means a confidentiality, non-disclosure and non-use agreement between Imperial and another Person in the form already agreed to by the Parties. "Negative Notice Bar Date" means 5:00 p.m. (Eastern Time) on the date that is twenty-one (21) days following the Negative Notice Issuance Date. "Negative Notice Claim" means the value (for voting purposes only) of the Affected Claims of each Claimant and the number of votes associated therewith as set forth in a Statement of Negative Notice Claim to be sent to each Claimant in accordance with the following: Claimant Number of Votes for Voting Purposes Value of Claim for Voting Purposes Quebec Class Action Plaintiffs (QCAPs) 99,958 $13,706,891,279 Pan-Canadian Claimants (PCCs) 186,003 $5,041,088,110 Knight Class Action Plaintiffs 1 $484,000,000 Tobacco Producers 3,930 $29,043,876 British Columbia 1 $136,681,344,490 Alberta 1 $119,266,303,168 Saskatchewan 1 $27,189,868,453 Manitoba 1 $42,741,373,788 Ontario 1 $271,795,731,959 Quebec 1 $253,365,332,712 New Brunswick 1 $22,778,964,723 Nova Scotia 1 $29,979,033,060 Prince Edward Island 1 $6,238,547,995 Newfoundland and Labrador 1 $20,279,767,449 Yukon 1 $3,752,573,987 Northwest Territories 1 $6,865,708,611 Nunavut 1 $3,584,449,605 Canada 1 $333,535,110 "Negative Notice Claims Package" means the Claimant's Statement of Negative Notice Claim and the form of Notice of Dispute of Negative Notice Claim to be used in the event that the Claimant wishes to raise a dispute in accordance with paragraph 8 of the Claims Procedure Order, which are attached as Schedule "A" to the CCAA Plan. "Negative Notice Issuance Date" means the date that the Statement of Negative Notice Claim is sent to a Claimant. "Net After-Tax Income" is as described in Article 5, Section 5.6. "Newco" has the meaning given in Article 2, Section 2.1(f) and refers to the new corporation to be incorporated pursuant to Article 4, Section 4.1. "Non-Monetary Cure Period" has the meaning given in Article 12, Section 12.3(c). Page 36 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29 "Non-Released Claims" means all Claims that are not Released Claims and, for greater certainty, includes all Unaffected Claims. "Normal Reassessment Period" has the meaning ascribed by subsection 152(3.1) of the ITA (and any analogous provisions of provincial or territorial law), taking into account any applicable extension under the Taxation Act (Quebec) resulting from a reassessment made by the CRA or another Provincial Tax Authority, except that in the case of a Tax Refund Cash Payment, the extended period provided by subparagraph 152(4)(b)(i) of the ITA (and any analogous provisions of provincial or territorial law) will apply, and where the CCAA Plan Administrators and Imperial have agreed to file a waiver, the extended period provided by subparagraph 152(4)(a)(ii) of the ITA (or the relevant analogous provisions of provincial or territorial law) shall apply. "Notice of Breach" has the meaning given in Article 13, Section 13.3. "Notice of Default" has the meaning given in Article 12, Section 12.3. "Notice of Dispute of Negative Notice Claim" means the notice, substantially in the form included in the Negative Notice Claims Package and attached to the CCAA Plan as Schedule "A", which may be delivered to the Monitor by a Claimant disputing a Statement of Negative Notice Claim and providing reasons for such dispute. "Omnibus Notice" means the notice which the Monitor shall cause to be published regarding the Claims Procedure Order and the Meeting, in accordance with the Omnibus Notice Program, a copy of which notice is attached as Schedule "C" to the Claims Procedure Order and as Schedule "C" to the CCAA Plan. "Omnibus Notice Program" means the plan to publish comprehensive legal notice regarding the Claims Procedure Order and the Meeting to Persons, including Putative Miscellaneous Claimants, situated in all the Provinces and Territories, as set forth on the document attached as Schedule "D" to the Claims Procedure Order and as Schedule "D" to the CCAA Plan. "Omnibus Sanction Hearing Notice" means the notice which the Monitor shall cause to be published regarding the Sanction Hearing in accordance with the Omnibus Sanction Hearing Notice Program. "Omnibus Sanction Hearing Notice Program" means the plan to publish comprehensive legal notice regarding the Sanction Hearing to Persons, including Putative Miscellaneous Claimants, situated in all the Provinces and Territories. "Ordinary Course Divestitures" has the meaning given in Article 11, Section 11.4. "Ordinary Course Divestitures Thresholds" has the meaning given in Article 11, Section 11.4. "Ordinary Course of Business" means, in relation to Imperial or a member of its Tobacco Company Group, the ordinary course of day-to-day business activities and operations of that company consistent with past practices, as such practices may change from time to time in the tobacco industry in response to regulatory, market or industry developments or changes, and Page 37 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 30 materially similar in nature and magnitude to actions customarily taken in the normal course of day-to-day operations. "Ordinary Course Operational Activities" has the meaning given in Article 11, Section 11.2. "Original Trustee" means BMO. "Oropharynx" means the part of the pharynx that is below the soft palate and above the epiglottis and is continuous with the mouth. It includes the back third of the tongue, the soft palate, the side and back walls of the throat, and the tonsils. "Pan-Canadian Claimants", or "PCCs", means Individuals, excluding Blais Class Members and Létourneau Class Members in relation to QCAP Claims, who have asserted or may be entitled to assert a PCC Claim. "Parent" means, in the case of Imperial, British American Tobacco p.l.c. "Parties" means the Claimants, the Tobacco Companies and the Tobacco Company Groups, and "Party" means any one of them. "PCC Agent" means Epiq in its role of agent for the PCC Representative Counsel in respect of the PCC Compensation Plan. "PCC Claim" means any Claim of any Pan-Canadian Claimant that has been made or may in the future be asserted or made in whole or in part against or in respect of the Released Parties, or any one of them (either individually or with any other Person), that has been advanced, could have been advanced or could be advanced, whether on such Pan-Canadian Claimant's own account, or on their behalf, or on behalf of a certified or proposed class, to recover damages or any other remedy in respect of the development, design, manufacture, production, marketing, advertising, distribution, purchase or sale of Tobacco Products, including any representations or omissions in respect thereof, the historical or ongoing use of or exposure (whether directly or indirectly) to Tobacco Products or their emissions and the development of any disease or condition as a result thereof, whether existing or hereafter arising, in each case based on, arising from or in respect of any conduct, act, omission, transaction, duty, responsibility, indebtedness, liability, obligation, dealing, fact, matter or occurrence existing or taking place at or prior to the Effective Time (whether or not continuing thereafter) including, all Claims that have been advanced, could have been advanced or could be advanced in the following actions commenced by Individuals under provincial class proceedings legislation and actions commenced by Individuals, or in any other similar proceedings: (a) Barbara Bourassa v. Imperial Tobacco Canada Limited et al. (Supreme Court of British Columbia, Court File No. 10-2780 and Court File No. 14-4722); (b) Roderick Dennis McDermid v. Imperial Tobacco Canada Limited et al. (Supreme Court of British Columbia, Court File No. 10-2769); (c) Linda Dorion v. Canadian Tobacco Manufacturers' Council et al. (Alberta Court of Queen's Bench, Court File No. 0901-08964); Page 38 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 31 (d) Thelma Adams v. Canadian Tobacco Manufacturers' Council et al. (Saskatchewan Court of Queen's Bench, Court File No. 916 of 2009); (e) Deborah Kunta v. Canadian Tobacco Manufacturers' Council et al. (Manitoba Court of Queen's Bench, Court File No. CI09-01-61479); (f) Suzanne Jacklin v. Canadian Tobacco Manufacturers' Council (Ontario Superior Court of Justice, Court File No. 53794/12); (g) Ben Semple v. Canadian Tobacco Manufacturers' Council et al. (Supreme Court of Nova Scotia, Court File No. 312869); (h) Victor Todd Sparkes v. Imperial Tobacco Canada Limited (Newfoundland and Labrador Supreme Court - Trial Division, Court File No. 200401T2716 CP); (i) Peter Stright v. Imperial Tobacco Canada Limited (Supreme Court of Nova Scotia, Court File No. 177663); (j) Ljubisa Spasic as estate trustee of Mirjana Spasic v. Imperial Tobacco Limited and Rothmans, Benson & Hedges Inc. (Ontario Superior Court of Justice, Court File No. C17773/97); (k) Ljubisa Spasic as estate trustee of Mirjana Spasic v. B.A.T. Industries P.L.C. (Ontario Superior Court of Justice, Court File No. C18187/97); (l) Ragoonanan v. Imperial Tobacco Canada Limited (Ontario Superior Court of Justice, Court File No. 00-CV-183165-CP00); (m) Scott Landry v. Imperial Tobacco Canada Limited (Ontario Superior Court of Justice, Court File No. 1442/03); (n) Joseph Battaglia v. Imperial Tobacco Canada Limited (Ontario Superior Court of Justice, Court File No. 21513/97); (o) Roland Bergeron v. Imperial Tobacco Canada Limited (Quebec Superior Court, Court File No. 750-32-700014-163); (p) Paradis, in personal capacity and on behalf of estate of Lorraine Trepanier v. Rothmans, Benson & Hedges Inc. (Quebec Small Claims Court); (q) Couture v. Rothmans, Benson & Hedges Inc. (Quebec Superior Court); and including any such Claim that is a Section 5.1(2) Claim or Section 19(2) Claim. "PCC Claim Package" means all of the documents that a PCC-Claimant or a PCC-Claimant's Legal Representative, as applicable, is required to complete and submit to the Claims Administrator including the Claim Form for PCC-Claimant, Claim Form for the Legal Representative of a PCC-Claimant, Physician Form (only if a pathology report in respect of Lung Page 39 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 32 Cancer or Throat Cancer, or a spirometry report in respect of Emphysema/COPD (GOLD Grade III or IV), is not available), and all medical and other documents requested in the Claim Forms and the Physician Form. The aforesaid forms are Appendices "C", "D" and "E" to the PCC Compensation Plan which is attached as Schedule "P" to the CCAA Plan. "PCC-Claimants" means the Pan-Canadian Claimants who are all Individuals resident in a Province or Territory of Canada, excluding the Quebec Class Action Plaintiffs in relation to QCAP Claims but including the Pan-Canadian Claimants' respective heirs, successors, assigns and representatives, who assert a PCC Claim by submitting a PCC Claim Package to the Claims Administrator pursuant to the PCC Compensation Plan, and "PCC-Claimant" means any one of them. "PCC Claims Administration" has the meaning given in the definition of Global Claims Administration Costs Framework. "PCC Claims Application Deadline" means the date twenty-four months after the First Notice Date by which all PCC-Claimants are required to submit their completed PCC Claim Packages to the Claims Administrator. The PCC Claims Application Deadline may be extended by the CCAA Court if it is deemed necessary and expedient to do so as the implementation of the PCC Compensation Plan unfolds. "PCC Claims Period" has the meaning given in Article 8, Section 8.1(d). "PCC Compensable Diseases" has the meaning given in Article 8, Section 8.1(d)(iii). "PCC Compensation Plan" has the meaning given in Article 8, Section 8.1 and is attached as Schedule "P". "PCC Compensation Plan Amount" means the aggregate amount allocated from the Global Settlement Amount to be payable into the Imperial PCC Trust Account, RBH PCC Trust Account and JTIM PCC Trust Account in respect of compensation for Eligible Pan-Canadian Claimants as set forth in Article 16, Sections 16.1, 16.2 and 16.3 herein. "PCC Compensation Plan Reserve Costs" means Costs incurred and payments to be made on or after the Plan Implementation Date, including Costs incurred prior to the Plan Implementation Date which remain outstanding as of the Plan Implementation Date, in respect of: (a) The Costs of the services which the Claims Administrator (including its advisors) provides in relation to the PCC Compensation Plan; (b) The Costs of the services which the PCC Agent (including its advisors) provides in relation to the PCC Compensation Plan; (c) The Costs of the services which the Administrative Coordinator (including his advisors) provides in connection with the performance of his duties under the CCAA Plan; and Page 40 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33 (d) The Costs of the services which the PCC Representative Counsel (including their advisors) provide in connection with the performance of their duties under the CCAA Plan and in the CCAA Proceeding. "PCC Eligibility Criteria" has the meaning given in Article 8, Section 8.1. "PCC Representative Counsel" means The Law Practice of Wagner & Associates, Inc. "Pending Litigation" has the meaning given in Article 18, Section 18.3.1. "Permitted Encumbrance" in regard to ITCAN or any Material Subsidiary means: (a) Encumbrances in favour of ITCAN or any Material Subsidiary existing on the date of the Contribution Security Agreement; (b) Subject to the covenants set forth in Article 11, Section 11.1(g) and Article 11, Section 11.1(k) herein, Encumbrances on property, or on capital stock or Indebtedness, of a Person existing at the time such Person is merged with or into, amalgamated with, or consolidated with ITCAN or any Material Subsidiary, provided that such Encumbrances were in existence prior to the contemplation of such merger, amalgamation or consolidation and do not extend to any assets other than those of the Person merged into, amalgamated with, or consolidated with ITCAN or any Material Subsidiary; (c) Encumbrances on property (including capital stock) existing at the time of acquisition of the property by ITCAN or any Material Subsidiary, provided that such Encumbrances were in existence prior to, and not incurred in contemplation of, such acquisition; (d) Encumbrances to secure the performance of bids, tenders, leases, statutory obligations, surety or appeal bonds, performance bonds or other obligations of a like nature incurred in the Ordinary Course of Business; (e) Encumbrances existing on the Plan Implementation Date; (f) Encumbrances for Taxes, assessments or governmental charges or claims that are not yet delinquent or that are being contested in good faith by appropriate proceedings promptly instituted and diligently concluded, provided that any reserve or other appropriate provision as is required in conformity with generally accepted accounting principles has been established therefor; (g) Encumbrances imposed by law, such as carriers', warehousemen's, landlord's, construction and mechanics' liens, in each case incurred in the Ordinary Course of Business; (h) Survey exceptions, easements or reservations of, or rights of others for, licenses, rights-of- way, sewers, electric lines, telegraph and telephone lines and other similar purposes, or zoning or other restrictions as to the use of real property that were not incurred in connection with Indebtedness and that do not in the aggregate constitute a Material Adverse Page 41 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 34 Effect on the value of such property or materially impair their use in the operation of the business of such Person; (i) Encumbrances created for the benefit of or to secure the obligations created in the Definitive Documents; and (j) Encumbrances incurred in the Ordinary Course of Business of ITCAN or any Material Subsidiary with respect to obligations that do not cause a Material Adverse Effect. "Permitted Transfers" has the meaning given in Article 11, Section 11.1(h). "Person" means an individual, a corporation, a partnership, a limited liability company, a trust, an unincorporated association, a Government, or any other group, entity or body. "Plan Implementation Conditions" has the meaning given in Article 19, Section 19.3. "Plan Implementation Date" means the date upon which all of the Plan Implementation Conditions and the conditions to other Definitive Documents have been satisfied or waived and the transactions contemplated by the CCAA Plan, the Sanction Order and the other Definitive Documents are to be implemented, as evidenced by the Monitor's Plan Implementation Date Certificate to be delivered to Imperial and filed with the CCAA Court. "Plan Implementation Date Certificate" has the meaning given in Article 19, Section 19.4. "PPSAs" means, collectively, Personal Property Security Act, RSBC 1996, c. 359, Personal Property Security Act, RSA 2000, c. P-7, The Personal Property Security Act, 1993, SS 1993, c. P-6.2, The Personal Property Security Act, RSM 1987, c. P35, Personal Property Security Act, RSO 1990, c. P.10, Personal Property Security Act, SNB 1993, c. P-7.1, Personal Property Security Act, SNS 1995-96, c. 13, Personal Property Security Act, RSPEI 1988, c. P-3.1, Personal Property Security Act, SNL 1998, c. P-7.1, Personal Property Security Act, RSY 2002, c. 169, Personal Property Security Act, SNWT (Nu) 1994, c. 8, as amended, and the relevant provisions of the Civil Code of Quebec, CQLR c. CCQ-1991. "Pre-Implementation Miscellaneous Claim" means an Affected Claim by a Person who is not an Individual Claimant and which Affected Claim is not a: (a) Provincial HCCR Claim, (b) Territorial HCCR Claim, (c) QCAP Claim, (d) PCC Claim, (e) Tobacco Producers Claim, or (f) Knight Claim. "Property" means all current and future assets, undertakings and properties of Imperial of every nature and kind whatsoever, and wherever situate, including all Cash and other proceeds thereof. "Provinces" means, collectively, His Majesty the King in right of British Columbia ("British Columbia"), His Majesty the King in right of Alberta ("Alberta"), His Majesty the King in right of Saskatchewan ("Saskatchewan"), His Majesty the King in right of Manitoba ("Manitoba"), His Majesty the King in right of Ontario ("Ontario"), the Attorney General of Quebec ("Quebec"), His Majesty the King in right of New Brunswick ("New Brunswick"), His Majesty the King In right of Nova Scotia ("Nova Scotia"), His Majesty the King in right of Prince Edward Page 42 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 35 Island ("Prince Edward Island") and His Majesty the King in right of Newfoundland and Labrador ("Newfoundland and Labrador"), and "Province" means any one of them. "Provinces and Territories Settlement Amount" means the aggregate amount allocated from the Global Settlement Amount to be payable to the Provinces and Territories to settle the Provincial HCCR Claims and Territorial HCCR Claims, as set forth in Article 16, Sections 16.1, 16.2 and 16.3 herein. "Provincial and Territorial Liaison Committee", or "PTLC", means the committee that shall be established by the Provinces and Territories in accordance with the PTLC Terms set out in Schedule "X". "Provincial and Territorial Liaison Committee Terms", or "PTLC Terms", are attached to the CCAA Plan as Schedule "X". "Provincial HCCR Claim" means any Claim that has been advanced, could have been advanced or could be advanced in any of the following actions or in any other similar proceedings, whether before or after the Effective Time and whether under the HCCR Legislation or otherwise: (a) Her Majesty the Queen in right of British Columbia v. Imperial Tobacco Canada Limited (Supreme Court of British Columbia, Court File No. S010421); (b) Her Majesty in right of Alberta v. Altria Group, Inc. (Alberta Court of Queen's Bench, Court File No. 1201-07314); (c) The Government of Saskatchewan v. Rothmans, Benson & Hedges Inc. (Saskatchewan Court of Queen's Bench, Court File No. 8712012); (d) Her Majesty the Queen in right of the Province of Manitoba v. Rothmans, Benson & Hedges Inc. (Manitoba Court of Queen's Bench, Court File No. CI 12-01-78127); (e) Her Majesty the Queen in right of Ontario v. Rothmans Inc. et al. (Ontario Superior Court of Justice, Court File No. CV-09-387984); (f) Procureur général du Québec v. Impérial Tobacco Canada Limitée (Quebec Superior Court, Court File No. 500-17-072363-123); (g) Her Majesty the Queen in right of the Province of New Brunswick v. Rothmans Inc. (New Brunswick Court of Queen's Bench, Court File No. F/C/88/08); (h) Her Majesty the Queen in right of the Province of Nova Scotia v. Rothmans, Benson & Hedges Inc. (Supreme Court of Nova Scotia, Court File No. 434868/737686); (i) Her Majesty the Queen in right of the Province of Prince Edward Island v. Rothmans, Benson & Hedges Inc. (Prince Edward Island Supreme Court, Court File No. S1 GS- 25019); Page 43 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 36 (j) Attorney General of Newfoundland and Labrador v. Rothmans Inc. (Supreme Court of Newfoundland and Labrador, Court File No. 201101G0826); and including any such Claim that is a Section 5.1(2) Claim or Section 19(2) Claim. "PTLC Chair" has the meaning given in Section 8 of the PTLC Terms which are Schedule "X" to the CCAA Plan. "PTLC Members" has the meaning given in Section 5 of the PTLC Terms which are Schedule "X" to the CCAA Plan. "PTLC Vice-Chair" has the meaning given in Section 11 of the PTLC Terms which are Schedule "X" to the CCAA Plan. "Putative Miscellaneous Claimant" means a Person, other than a Claimant or an Individual Claimant, who asserts a Miscellaneous Claim. "QCAP Claim" means any Claim that has been advanced, could have been advanced or could be advanced in the following class actions, whether before or after the Effective Time: (a) Conseil québécois sur le tabac et la santé et Jean-Yves Blais c. Imperial Tobacco Ltée, Rothmans, Benson & Hedges Inc. et JTI-MacDonald Corp. (Quebec Superior Court, Court File No. 500-06-00076-980); and (b) Létourneau c. Imperial Tobacco Ltée, Rothmans Benson & Hedges Inc. et JTI MacDonald Corp. (Quebec Superior Court, Court File No. 500-06-000070-983), including the judgment of the Honourable Justice Brian Riordan dated May 27, 2015 as rectified on June 9, 2015, and the judgment of the Court of Appeal of Quebec dated March 1, 2019, and any such Claim that is a Section 5.1(2) Claim or Section 19(2) Claim. "QCAP Claims Administration" has the meaning given in the definition of Global Claims Administration Costs Framework. "QCAP Claims Process" means the process established pursuant to the Quebec Administration Plan for Blais Class Members to assert claims for direct monetary compensation. "QCAP Cy-près Contribution" means the aggregate sum of $131.0 million forming part of the QCAP Settlement Amount that shall be contributed by the QCAPs to the Cy-près Fund. The proportionate shares of the QCAP Cy-près Contribution which the Trustees shall transfer from each of the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account into, respectively, the Imperial Cy-près Trust Account, RBH Cy-près Trust Account and JTIM Cy-près Trust Account shall be equal to the proportionate shares of the Upfront Contributions made by Imperial, RBH and JTIM. The QCAP Cy-près Contribution is the consideration for the full and final settlement and satisfaction of the Létourneau Judgment. Page 44 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37 "QCAP Settlement Amount" means the aggregate amount allocated from the Global Settlement Amount to be paid into the Imperial QCAP Trust Account, RBH QCAP Trust Account and JTIM QCAP Trust Account for the benefit of the QCAPs in settlement of the Tobacco Companies' liability pursuant to the judgments rendered in the Quebec Class Actions, as set forth in Article 16, Sections 16.1, 16.2 and 16.3 herein. "Quebec Class Action Administration Plan", or "Quebec Administration Plan", means the document (with attached appendices) that is subject to the approval of the CCAA Court setting out the process by which the Quebec Class Action Plaintiffs may submit claims for a Compensation Payment pursuant to the Blais Judgment, the process of administering such claims, and the joint oversight and supervision thereof by the CCAA Court and the Superior Court of Quebec. "Quebec Class Action Plaintiffs", or "QCAPs", means individuals who meet the criteria of the certified class definitions in the Quebec Class Actions. "Quebec Class Actions" means, collectively, (i) Conseil québécois sur le tabac et la santé et al. v. JTI-Macdonald Corp. et al., Court File No. 500-06-000076-980 (Montreal, Quebec), and (ii) Cecilia Létourneau et al. v. Imperial Tobacco Canada Ltd., et al., Court File No. 500-06-000070- 983 (Montreal, Quebec). "Quebec Class Counsel" means, collectively, the law practices of Trudel Johnston & Lespérance s.e.n.c., Kugler Kandestin s.e.n.c.r.l., L.L.P., De Grandpré Chait s.e.n.c.r.l., L.L.P., and Fishman Flanz Meland Paquin s.e.n.c.r.l., L.L.P. "Quebec Class Counsel Fee" means the amount to be determined subject to the approval of the CCAA Court that will be payable from the QCAP Settlement Amount to Quebec Class Counsel, and to any legal counsel or other advisors of any nature or kind whatsoever who have provided, are providing or may in the future provide services to the Quebec Class Counsel in connection with the CCAA Proceedings, the Quebec Class Actions and/or any other proceedings on behalf of the Blais Class Members and/or Létourneau Class Members both before and after the Plan Implementation Date, in respect of their fees, disbursements and costs as Quebec Class Counsel, and any applicable Sales and Excise Taxes payable thereon. All Costs incurred in respect of the services provided by Raymond Chabot (as agent for the Quebec Class Counsel on behalf of the QCAPs) both before and after the Plan Implementation Date shall be paid by Quebec Class Counsel out of the Quebec Class Counsel Fee. "Quebec Superior Court" means the Superior Court of Quebec, Class Action Division, at Montreal. "Raymond Chabot" means Raymond Chabot Administrateur Provisoire Inc. and its Affiliates. "RBH" means Rothmans, Benson & Hedges Inc. "RBH CCAA Plan Administration Reserve" means the Cash reserve to be established on the Plan Implementation Date prior to any distributions to Affected Creditors of RBH as authorized by the CCAA Court pursuant to the Sanction Order in respect of RBH, in the amount of $25.0 million, and to be paid or directed to be paid by RBH out of the Upfront Contributions of RBH or any other Contribution made by RBH as of the Plan Implementation Date and deposited into the Page 45 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 38 RBH CCAA Plan Administration Reserve Account for the purpose of remedying any default in payment of any RBH CCAA Plan Administration Reserve Costs. The Trustees shall hold the RBH CCAA Plan Administration Reserve in trust for the benefit of those Persons who incur and are entitled to be paid RBH CCAA Plan Administration Reserve Costs pursuant to the RBH CCAA Plan in respect of the CCAA Proceeding in respect of RBH. In aggregate, the Imperial CCAA Plan Administration Reserve, RBH CCAA Plan Administration Reserve and JTIM CCAA Plan Administration Reserve shall total $75.0 million. "RBH CCAA Plan Administration Reserve Account" means a segregated interest-bearing trust account to be established by the Trustees to hold the RBH CCAA Plan Administration Reserve on behalf of the beneficiaries thereof. "RBH CCAA Plan Administration Reserve Costs" means Costs incurred and payments to be made on or after the Plan Implementation Date by RBH, including Costs incurred prior to the Plan Implementation Date which remain outstanding as of the Plan Implementation Date, in respect of: (a) The Costs of the services which EY (including its legal, financial, investment or other advisors) provides in connection with the performance of its duties as both the Monitor and the CCAA Plan Administrator under the RBH CCAA Plan and in the CCAA Proceeding in respect of RBH and in respect of the ongoing administration of the CCAA Plan, including the fulfillment of its duties and responsibilities enumerated in Article 14, Section 14.4 herein, and as set out in the Sanction Order and the CCAA Plan Administrator Appointment Order in each case in respect of RBH; and (b) The Costs of the Court-Appointed Mediator's Ongoing Services which the Court- Appointed Mediator (including his legal counsel and other consultants and advisors) may provide after the date of the Sanction Order in respect of RBH, as requested by the Monitor or the CCAA Plan Administrator in respect of RBH, or by the CCAA Court, and approved by the CCAA Court pursuant to the CCAA Plan Administrator Appointment Order in respect of RBH, the Court-Appointed Mediator's Ongoing Services Direction and the Fee Approval Direction. "RBH CCAA Plan Administration Reserve Trust" means the trust to be known as "The RBH CCAA Plan Administration Reserve Trust" that shall be created pursuant to the RBH CCAA Plan Administration Reserve Trust Deed and into which the RBH CCAA Plan Administration Reserve shall be deposited. "RBH CCAA Plan Administration Reserve Trust Deed" means the deed of trust to be entered into between RBH as the settlor and BMO as the Original Trustee to create the RBH CCAA Plan Administration Reserve Trust, as amended, restated or supplemented from time to time pursuant to the terms thereof. "RBH Cy-près Trust Account" means a segregated interest-bearing trust account to be established in the Bank by the Trustees to hold RBH's share of the Cy-près Fund in trust for the benefit of the Cy-près Foundation. The proportionate shares of the Cy-près Fund which the Trustees shall transfer from each of the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account into, respectively, the Page 46 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 39 Imperial Cy-près Trust Account, RBH Cy-près Trust Account and JTIM Cy-près Trust Account shall be equal to: (i) on the Plan Implementation Date, the proportionate shares of the Upfront Contributions made by Imperial, RBH and JTIM; and (ii) in respect of years 2, 3, 4 and 5 following the Plan Implementation Date and any subsequent years until the Cy-près Fund has been paid in full, the proportionate shares of the Annual Contributions made by Imperial, RBH and JTIM in each of those years. "RBH Deed" means the deed of trust to be entered into between RBH as the settlor and BMO as the Original Trustee, to create the RBH Global Settlement Trust, as amended, restated or supplemented from time to time pursuant to the terms thereof. "RBH Global Settlement Trust" means the trust to be known as "The RBH Global Settlement Trust" that shall be created pursuant to the RBH Deed and into which RBH's Upfront Contribution (other than the portion of the Upfront Contributions which is to be contributed to the RBH CCAA Plan Administration Reserve) and Annual Contributions shall be deposited. "RBH Global Settlement Trust Account" has the meaning given in Article 5, Section 5.3. "RBH Miscellaneous Claims Fund" means the Cash reserve to be established on the Plan Implementation Date prior to any distributions to Affected Creditors of RBH as authorized by the CCAA Court pursuant to the Sanction Order in respect of RBH, and to be paid out of the total Upfront Contributions made by RBH and deposited into the RBH Miscellaneous Claims Fund for the purpose of paying the Miscellaneous Claims of Persons who are found by the CCAA Court to be entitled to be paid their Miscellaneous Claim pursuant to the RBH CCAA Plan. The Trustees shall hold the RBH Miscellaneous Claims Fund in trust for those Persons who are entitled to be paid their Miscellaneous Claim pursuant to the RBH CCAA Plan. In aggregate, the Imperial Miscellaneous Claims Fund, RBH Miscellaneous Claims Fund and JTIM Miscellaneous Claims Fund shall total $25.0 million. The proportionate shares of the aggregate amount of $25.0 million which Imperial, RBH and JTIM shall deposit, respectively, into the Imperial Miscellaneous Claims Fund, RBH Miscellaneous Claims Fund and JTIM Miscellaneous Claims Fund from their respective Upfront Contribution shall be equal to the proportionate shares of the Upfront Contributions made by Imperial, RBH and JTIM. "RBH PCC Compensation Plan Reserve" means the Cash reserve to be established on the Plan Implementation Date prior to any distributions to Affected Creditors as authorized by the CCAA Court pursuant to the Sanction Order, and to be paid out of the total Upfront Contributions made by RBH and deposited into the RBH PCC Compensation Plan Reserve Account for the purpose of remedying any default in payment of any PCC Compensation Plan Reserve Costs. The Trustees shall hold the RBH PCC Compensation Plan Reserve in trust for those Persons who incur and are entitled to be paid PCC Compensation Plan Reserve Costs pursuant to the CCAA Plan. In aggregate, the Imperial PCC Compensation Plan Reserve, RBH PCC Compensation Plan Reserve and JTIM PCC Compensation Plan Reserve shall total $5.0 million. The proportionate shares of the aggregate amount of $5.0 million which each of Imperial, RBH and JTIM shall deposit, respectively, into the Imperial PCC Compensation Plan Reserve Account, RBH PCC Compensation Plan Reserve Account and JTIM PCC Compensation Plan Reserve Account from their respective Upfront Contribution shall be equal to the proportionate shares of the Upfront Contributions made by Imperial, RBH and JTIM. Page 47 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 40 "RBH PCC Compensation Plan Reserve Account" means a segregated interest-bearing trust account to be established by the Trustees to hold the RBH PCC Compensation Plan Reserve on behalf of the beneficiaries thereof. "RBH PCC Trust Account" means a segregated interest-bearing trust account to be established in the Bank by the Trustees to hold RBH's share of the PCC Compensation Plan Amount in trust for the benefit of the Pan-Canadian Claimants. The proportionate shares of the PCC Compensation Plan Amount which the Trustees shall transfer from each of the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account into, respectively, the Imperial PCC Trust Account, RBH PCC Trust Account and JTIM PCC Trust Account shall be equal to: (i) on the Plan Implementation Date, the proportionate shares of the Upfront Contributions made by Imperial, RBH and JTIM; and (ii) in respect of years 1 and 2 following the Plan Implementation Date and any subsequent year until the PCC Compensation Plan Amount has been paid in full, the proportionate shares of the Annual Contributions made by Imperial, RBH and JTIM in each of those years. "RBH QCAP Trust Account" means a segregated interest-bearing trust account to be established in the Bank by the Trustees to hold RBH's share of the QCAP Settlement Amount in trust for the benefit of the Blais Class Members. The proportionate shares of the QCAP Settlement Amount which the Trustees shall transfer from each of the RBH Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account into, respectively, the Imperial QCAP Trust Account, RBH QCAP Trust Account and JTIM QCAP Trust Account shall be equal to: (i) on the Plan Implementation Date, the proportionate shares of the Upfront Contributions made by Imperial, RBH and JTIM; and (ii) in respect of year 1 following the Plan Implementation Date and any subsequent years until the QCAP Settlement Amount has been paid in full, the proportionate shares of the Annual Contributions made by Imperial, RBH and JTIM in that year. "RBH Retained Amount" has the meaning given in Article 5, Section 5.4. "RBH Supplemental Trust" means the bare trust to be known as "The RBH Supplemental Trust" that shall be created pursuant to The RBH Supplemental Trust Agreement. "RBH Supplemental Trust Account" has the meaning given in Article 5, Section 5.3. "RBH Supplemental Trust Agreement" means the agreement to be entered into between RBH and the Bare Trustees creating the RBH Supplemental Trust, as amended, restated or supplemented from time to time pursuant to the terms thereof. "RBH Supplemental Trust Agreement Funds" means any and all property held at any time by the Bare Trustees pursuant to the RBH Supplemental Trust Agreement, including the Reserved Amounts and such additional property which RBH, or other Persons may, in accordance with the CCAA Plan, transfer, assign, convey or deliver to the Bare Trustees to be deposited into the RBH Supplemental Trust Account, together with income, interest and any other revenues generated thereby or accretions or additions thereto and any property into which any of the foregoing may be converted or exchanged. "Release" has the meaning given in Article 18, Section 18.1.1. Page 48 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45 "Section 19(2) Claims" means any Claims against Imperial that relate to any of the following debts or liabilities, present or future, to which Imperial is subject on the day on which the CCAA Proceeding commenced, or to which Imperial may become subject before the compromise or arrangement is sanctioned by reason of any obligation incurred by Imperial before the day on which the CCAA Proceeding commenced, unless the compromise or arrangement in respect of Imperial explicitly provides for the Claim's compromise, and the creditor in relation to that debt has voted for the acceptance of the compromise or arrangement: (a) any fine, penalty, restitution order or other order similar in nature to a fine, penalty or restitution order, imposed by a court in respect of an offence; (b) any award of damages by a court in civil proceedings in respect of: (i) bodily harm intentionally inflicted, or sexual assault, or (ii) wrongful death resulting from an act referred to in subparagraph (i); (c) any debt or liability arising out of fraud, embezzlement, misappropriation or defalcation while acting in a fiduciary capacity or, in Quebec, as a trustee or an administrator of the property of others; (d) any debt or liability resulting from obtaining property or services by false pretences or fraudulent misrepresentation, other than a debt or liability of the company that arises from an equity claim; or (e) any debt for interest owed in relation to an amount referred to in any of paragraphs (a) to (d). "Secured Claim" means any Claim of a creditor to the extent that it is secured by a valid Encumbrance that is duly and properly registered or otherwise perfected in accordance with Applicable Law in the appropriate jurisdiction as of the Filing Date or thereafter pursuant to an Order, to the extent of the value of such Encumbrance as at the Filing Date (having regard to the value of the assets subject to such Encumbrance and the priority of such Encumbrance) and which Claim is entitled to be proven as a secured claim pursuant to the provisions of the CCAA. "Signing Authorization Order" means the order of the CCAA Court dated August 15, 2025 made in the CCAA Proceedings authorizing Quebec Class Counsel, PCC Representative Counsel, Knight Class Counsel and Counsel for the Tobacco Producers to execute and deliver on behalf of, respectively, the Quebec Class Action Plaintiffs, the Pan-Canadian Claimants, the Knight Class Action Plaintiffs, and the Tobacco Producers any and all documents as they consider advisable to give effect to the implementation of the CCAA Plans. "Statement of Negative Notice Claim" means the respective statements to be prepared by the Monitor, each of which shall contain, for voting purposes, the amount and number of votes ascribed to the Negative Notice Claim of each Claimant. The Statement of Negative Notice Claim is included in Schedule "A" to the CCAA Plan. "Stay Period" has the meaning ascribed to such term in the Initial Order. Page 53 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 46 "Submitted PCC-Claims" means the claims made by the PCC-Claimants by submitting a PCC Claim Package to the Claims Administrator, and "Submitted PCC-Claim" means any one of them. "Subsequent Annual Global Claims Administration Costs Budget" means, for each twelve calendar month period following the end of the twelve calendar month period covered by the First Annual Global Claims Administration Costs Budget until the PCC Claims Administration and the QCAP Claims Administration, respectively, are complete (i) each subsequent budget for the PCC Claims Administration, and (ii) each subsequent budget for the QCAP Claims Administration that the Claims Administrator and PCC Agent shall provide to the CCAA Plan Administrators and is subject to the joint approval of the CCAA Court and the Quebec Superior Court in accordance with the terms of the Claims Administrator Order. "Subsidiary" has the meaning attributed thereto in Section 2(5) of the Canada Business Corporations Act, R.S.C. 1985, c. C-44, as amended. "Succession Claim" means the QCAP Claim of a Succession Claimant which is submitted to the Claims Administrator using the Succession Claim Form. "Succession Claimant" means a person who asserts a Succession Claim pursuant to the Quebec Administration Plan. "Surviving Family Members" means, collectively the Individuals who are eligible to recover damages for loss of guidance, care and companionship pursuant to the applicable legislation in each jurisdiction which governs surviving family members' claims for damages, namely: Family Compensation Act, RSBC 1996, c. 126; Fatal Accidents Act, RSA 2000, c. F-8; The Fatal Accidents Act, RSS 1978, c. F-11; The Fatal Accidents Act, CCSM, c. F50; Family Law Act, RSO 1990, c. F.3; Civil Code of Quebec, chapter CCQ-1991; Fatal Accidents Act, RSNB 2012, c.104; Fatal Injuries Act, RSNS 1989, c. 163; amended 2000, c. 29, ss. 9-12; Fatal Accidents Act, RSPEI 1988, c. F-5; Fatal Accidents Act, RSNL 1990, c F-6; Fatal Accidents Act, RSY 2002, c 86; and Fatal Accidents Act, RSNWT (Nu) 1988, c F-3. For greater certainty, "Surviving Family Members" does not include the estates of Individuals who fulfill the criteria to receive compensation as a Pan-Canadian Claimant. "Tax Attribute" means, with respect to Imperial, any tax attribute resulting from the deductibility of an Upfront Contribution, Annual Contribution or applicable Reserved Amount that is available for carryforward or carryback to another taxation year, including a non-capital loss, capital loss, credit, and other balance. "Tax Authority" means the CRA, the Receiver General for Canada, any other federal Governmental Authority (such as the Canada Border Services Agency) and any corresponding provincial or territorial Governmental Authority. "Tax Matter" has the meaning given in Article 10, Section 10.2.2(m). "Tax Refund Cash Payment" has the meaning given in the definition of Reserved Amount. Page 54 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 47 "Tax Refund" means any income tax refund received from a Tax Authority in cash or cash equivalent by Imperial during the Contribution Period. For greater certainty, any tax instalment overpayment shall not be considered a Tax Refund. "Taxes" means all federal, state, provincial, territorial, county, municipal, local or foreign taxes, duties, imposts, levies, assessments, tariffs and other charges imposed, assessed or collected by a Tax Authority including those levied on, or measured by, or referred to as, income, net income, gross income, gross receipts, business, royalty, capital, capital gains, goods and services, harmonized sales, value added, severance, stamp, franchise, occupation, premium, capital stock, sales and use, real property, land transfer, personal property, ad valorem, transfer, licence, profits, windfall profits, withholding, environmental, payroll, employment, employer health, pension plan, anti-dumping, countervail, excise, severance, stamp, occupation, or premium tax, all employment insurance premiums, Canada, Québec and any other pension plan contributions or premiums. "Territorial HCCR Claim" means any Claim that: (a) Northwest Territories has advanced, could have advanced or could advance pursuant to the Tobacco Damages and Health Care Costs Recovery Act, SNWT 2011, c 33 (proclaimed but not yet in force), whether before or after the Effective Time, and whether under the HCCR Legislation or otherwise; (b) Nunavut has advanced, could have advanced or could advance pursuant to the Tobacco Damages and Health Care Costs Recovery Act, SNu 2010, c 31 (proclaimed but not yet in force), whether before or after the Effective Time, and whether under the HCCR Legislation or otherwise; (c) Yukon has advanced, could have advanced or could advance, whether before or after the Effective Time, in relation to the recovery of (i) the present value of the total expenditure by Yukon for health care benefits provided for Insured Persons resulting from Tobacco- related Disease or the risk of Tobacco-related Disease, and (ii) the present value of the estimated total expenditure by Yukon for health care benefits that could reasonably be expected will be provided for those Insured Persons resulting from Tobacco-related Disease or the risk of Tobacco-related Disease, including pursuant to any legislation that may be enacted by Yukon in the future which could result in a Claim against any of the Released Parties relating to such expenditures; and including any such Claim that is a Section 5.1(2) Claim or Section 19(2) Claim. "Territories" means, collectively, the Government of Yukon ("Yukon"), the Government of the Northwest Territories ("Northwest Territories") and the Government of Nunavut ("Nunavut"), and "Territory" means any one of them. "Thauvette Affidavit" means the affidavit sworn on March 12, 2019 by Eric Thauvette, Vice President and Chief Financial Officer of Imperial Tobacco Canada Limited, in Imperial Tobacco Canada Limited (Re) bearing Application No. CV-19-616077-00CL. "Throat Cancer" has the meaning given in Article 8, Section 8.1(d)(ii). Page 55 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 48 "Tobacco Claim" means any Claim of any Person against or in respect of a Tobacco Company and/or any Director thereof, or any member of its Tobacco Company Group and/or any Director thereof, that has been advanced (including, without limitation, in any outstanding or pending litigation), that could have been advanced or that could be advanced, and whether such Claim is on such Person's own account, on behalf of another Person, as a dependent of another Person, or on behalf of a certified or proposed class, or made or advanced by a Government, or an agency, insurer, employer or otherwise, under or in connection with Applicable Law, or under any current or future statute to recover damages or any other remedy or costs in respect of the development, design, manufacture, production, marketing, advertising, distribution, purchase, sale or disposition of Tobacco Products, the use of or exposure (whether directly or indirectly) to Tobacco Products or their emissions, the development of any disease related to the use of Tobacco Products, or any representation or omission in respect of Tobacco Products, including any misrepresentations, breach of duty or fraud in respect thereof by any member of the Tobacco Company Group or its Representatives in Canada or, in the case of the Tobacco Company, anywhere else in the world, in each case based on, arising from or in respect of any conduct, act, omission, transaction, duty, responsibility, indebtedness, liability, obligation, dealing, fact, matter or occurrence existing or taking place at or prior to the Effective Time (whether or not continuing thereafter) and including any such Claim that is a Section 5.1(2) Claim or Section 19(2) Claim. For greater certainty, Tobacco Claim includes: (a) Any Provincial HCCR Claim; (b) Any Territorial HCCR Claim; (c) Any QCAP Claim; (d) Any PCC Claim; (e) Any Knight Claim; and (f) Any Tobacco Producers Claim. "Tobacco Companies" means, collectively, Imperial, RBH and JTIM, and "Tobacco Company" means any one of them. "Tobacco Company Group" means, in respect of Imperial, its Parent and all other current or former Affiliates, direct or indirect Subsidiaries or parents, of Imperial, and their respective indemnitees. "Tobacco Company's Global Settlement Trust Account" means, as applicable, the Imperial Global Settlement Trust Account, the RBH Global Settlement Trust Account and the JTIM Global Settlement Trust Account. "Tobacco Company's Supplemental Trust Account" means, as applicable, the Imperial Supplemental Trust Account, the RBH Supplemental Trust Account and the JTIM Supplemental Trust Account. Page 56 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;49 "Tobacco Producers" means, collectively, the Ontario Flue-Cured Tobacco Growers' Marketing Board, Andy J. Jacko, Brian Baswick, Ron Kichler, Arpad Dobrentey and all other tobacco growers and producers, including any successors or assigns, who sold their tobacco through the Ontario Flue-Cured Tobacco Growers' Marketing Board pursuant to the annual Heads of Agreement made with ITCAN, RBH and JTIM from January 1, 1986 to December 31, 1996, and "Tobacco Producer" means any one of them. "Tobacco Producers' Actions" means the uncertified class actions enumerated in the definition of "Tobacco Producers Claim" in the CCAA Plan. "Tobacco Producers Claim" means any Claim that has been advanced, could have been advanced or could be advanced in the following class actions or in any other similar proceedings, whether before or after the Effective Time: (a) The Ontario Flue-Cured Tobacco Growers' Marketing Board v. JTI-Macdonald Corp. (Ontario Superior Court of Justice, Court File No. 1056/10CP); (b) The Ontario Flue-Cured Tobacco Growers' Marketing Board v. Rothmans, Benson & Hedges Inc. (Ontario Superior Court of Justice, Court File No. 64462 CP); and (c) The Ontario Flue-Cured Tobacco Growers' Marketing Board v. Imperial Tobacco Canada Limited (Ontario Superior Court of Justice, Court File No. 64757 CP); including any such Claim that is a Section 5.1(2) Claim or Section 19(2) Claim. "Tobacco Producers Settlement Amount" means the aggregate amount allocated from the Global Settlement Amount to be payable to the Ontario Flue-Cured Tobacco Growers' Marketing Board for the benefit of the Tobacco Producers, as set forth in Article 16, Sections 16.1, 16.2 and 16.3 herein. The Counsel for the Tobacco Producers' Fee is subject to the approval of the CCAA Court and shall be paid out of the Tobacco Producers Settlement Amount. "Tobacco Product" means any product made in whole or in part of tobacco that is intended for human consumption or use, including any component, part, or accessory of or used in connection with a tobacco product, including cigarettes, tobacco sticks (intended for smoking and requiring further preparation before they are smoked), loose tobacco intended for incorporation into cigarettes, cigars, cigarillos, pipe tobacco, kreteks, bidis and smokeless tobacco (including chewing tobacco, nasal snuff and oral snuff), but does not include any Alternative Product. "Tobacco-related Disease" means a disease or other illness or harm caused or contributed to by the use of or exposure (whether directly or indirectly) to a Tobacco Product. "Tobacco-Victim" means any Individual who suffers or suffered from a Tobacco-related Disease. "Tobacco-Victim Claim" is the QCAP Claim of a Tobacco-Victim which is submitted to the Claims Administrator using the Tobacco-Victim Claim Form. "Tobacco-Victim Claimant" means a person who asserts a Tobacco-Victim Claim pursuant to the Quebec Administration Plan. Page 57 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 50 "Trustees" means BMO (i) in its capacity as the original trustee under the Imperial Deed, RBH Deed or JTIM Deed and at any other time the Person or Persons holding office as the trustee or trustees of any trust created under the Imperial Deed, RBH Deed or JTIM Deed at such time, or as the context otherwise requires, (ii) in its capacity as the original trustee under the Imperial CCAA Plan Administration Reserve Trust Deed, RBH CCAA Plan Administration Reserve Trust Deed or JTIM CCAA Plan Administration Reserve Trust Deed and at any other time the Person or Persons holding office as the trustee or trustees of any trust created under the Imperial CCAA Plan Administration Reserve Trust Deed, RBH CCAA Plan Administration Reserve Trust Deed or JTIM CCAA Plan Administration Reserve Trust Deed at such time. "Twelve Pack-Years" means the equivalent of a minimum of 87,600 cigarettes, namely any combination of the number of cigarettes smoked in a day multiplied by the number of days of consumption insofar as the total is equal to or greater than 87,600 cigarettes. For example, Twelve Pack-Years equals: (a) 20 cigarettes a day for 12 years (20 X 365 X 12 = 87,600); or (b) 30 cigarettes a day for 8 years (30 X 365 X 8 = 87,600); or (c) 10 cigarettes a day for 24 years (10 X 365 X 24 = 87,600). "Unaffected Claims" means, collectively: (a) any Alternative Product Claim; (b) any Claim by a Person relating to the right to enforce against any Released Party its obligations under any of the Definitive Documents; (c) any Claim secured by the CCAA Charges; (d) any Cash Management Bank Claim; (e) any Employee Priority Claim; (f) any Government Priority Claim; (g) any Claim in respect of the Imperial CCAA Plan Administration Reserve Costs; (h) any Claim in respect of the PCC Compensation Plan Reserve Costs; (i) any Secured Claim that is not a Tobacco Claim; (j) any Claim for Costs by the Monitor, the CCAA Plan Administrator, the Claims Administrator, the Administrative Coordinator, the Court-Appointed Mediator, including their respective legal or other advisors, or counsel to Imperial, subject to the applicable terms in connection therewith under the CCAA Plan; (k) any Claim by any Director under any directors' or officers' indemnity policy or agreement with Imperial to the extent not otherwise covered by the CCAA Charges; Page 58 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 51 (l) any Intercompany Services Claim; (m) any Intercompany Claim, subject to the terms of Article 5, Section 5.15; (n) any Claim by a supplier against Imperial for the supply of goods or services other than a Tobacco Claim; (o) any Claim against Imperial relating to environmental remediation pursuant to Applicable Law; (p) any Claim by Canada or any Province or Territory against any Released Party relating in any manner to: (i) except as otherwise contemplated in the CCAA Plan, any applicable Taxes of any kind whatsoever applicable to any Released Party, and (ii) such Released Party's compliance with any Applicable Law and statutes and the regulations made thereunder, except for liability for actions or omissions occurring prior to the Effective Time in respect of a Tobacco Claim; (q) any Claim in respect of ITCAN's obligation to pay the balance owed under the Comprehensive Agreement dated July 31, 2008 between ITCAN, Canada and the Provinces which settled the claims by Canada and the Provinces against ITCAN regarding the trade of contraband products in Canada and related tax collection matters; and (r) any Claim by any Person under any contract with Imperial that has not been disclaimed and which Claim is not a Tobacco Claim; and, for greater certainty, shall include any Unaffected Claim arising through subrogation. "Unaffected Creditor" means a Person who has an Unaffected Claim. "Upfront Contributions" has the meaning given in Article 5, Section 5.4, and "Upfront Contribution" means any one of them. "US Bankruptcy Code" means title 11 of the United States Bankruptcy Code 11 U.S.C. §§ 101 – 1532, as amended. "US Bankruptcy Court" means the United States Bankruptcy Court, Southern District of New York. "Virtual Data Room" has the meaning given in Article 10, Section 10.10. "Voting Claim" means the amount of the Affected Claim of an Affected Creditor as finally determined for voting purposes in accordance with the Statements of Negative Notice Claims, the Claims Procedure Order and the Meeting Order entitling such Affected Creditor to vote at the Meeting in accordance with the provisions of the Meeting Order, the CCAA Plan and the CCAA. Page 59 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 52 "Weekly Actual Costs Reports" means the weekly reports that the Claims Administrator and PCC Agent shall provide to the CCAA Plan Administrators setting out the actual costs incurred, including actual time spent and hourly rates applied, and expenditures made by the Claims Administrator and the PCC Agent during the immediately prior week in regard to each of the PCC Claims Administration, QCAP Claims Administration, PCC Agent, PCC Notice Plan and Blais Notice Plan, in accordance with the terms of the Claims Administrator Order. "Weekly Claims Administration Reports" means the weekly reports, in respect of the week upon which the weekly reports are based, that the Claims Administrator and PCC Agent shall provide to the CCAA Plan Administrators setting out for each of the PCC Compensation Plan and the Quebec Administration Plan, the particulars regarding (i) the number of claims received, (ii) the number of claims reviewed, (iii) the number of incomplete claims awaiting submission of further information, (iv) the number of claims approved, (v) the number of claims rejected, (vi) the number of rejected claims that are in the process of being reviewed by the Review Officer, and (vii) the overall status of the claims administration process, in accordance with the terms of the Claims Administrator Order. "Weekly Events Reports" means the weekly reports, in respect of the week upon which the weekly reports are based, that the Claims Administrator and PCC Agent shall provide to the CCAA Plan Administrators identifying and explaining any unusual, unexpected or inexplicable events that occurred and/or out of the ordinary trends that were observed in the PCC Claims Administration and the QCAP Claims Administration to enable the Claims Administrator and/or the PCC Agent, as applicable, to take prompt steps to correct any issues, problems, errors and/or mistakes in the claims administration processes as soon as possible, in accordance with the terms of the Claims Administrator Order. 1.2 Certain Rules of Interpretation For the purposes of the CCAA Plan: (a) Any reference in the CCAA Plan to an Order or an existing document or exhibit filed or to be filed means such Order, document or exhibit as it may have been or may be amended, modified, or supplemented; (b) Unless otherwise specified, all references to currency are in Canadian dollars; (c) The division of the CCAA Plan into "articles" and "sections" and the insertion of a table of contents are for convenience of reference only and do not affect the construction or interpretation of the CCAA Plan, nor are the descriptive headings of "articles" and "sections" intended as complete or accurate descriptions of the content thereof; (d) The use of words in the singular or plural, or with a particular gender, including a definition, will not limit the scope or exclude the application of any provision of the CCAA Plan or a schedule hereto to such Person (or Persons) or circumstances as the context otherwise permits; (e) The words "includes" and "including" and similar terms of inclusion will not, unless expressly modified by the words "only" or "solely", be construed as terms of limitation, Page 60 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53 but rather will mean "includes but is not limited to" and "including but not limited to", so that references to included matters will be regarded as illustrative without being either characterizing or exhaustive; (f) Unless otherwise specified, all references to time herein and in any document issued pursuant hereto mean local time in Toronto, Ontario and any reference to an event occurring on a Business Day means prior to 5:00 p.m. (Eastern Time) on such Business Day; (g) Unless otherwise specified, time periods within or following which any payment is to be made or act is to be done will be calculated by excluding the day on which the period commences and including the day on which the period ends and by extending the period to the next succeeding Business Day if the last day of the period is not a Business Day; (h) Unless otherwise provided, any reference to a statute or other enactment of parliament or a legislature includes all regulations made thereunder, all amendments to or re-enactments of such statute or regulations in force from time to time, and, if applicable, any statute or regulation that supplements or supersedes such statute or regulation; (i) References to a specified "article" or "section" will, unless something in the subject matter or context is inconsistent therewith, be construed as references to that specified article or section of the CCAA Plan, whereas the terms "the CCAA Plan", "hereof", "herein", "hereto", "hereunder" and similar expressions will be deemed to refer generally to the CCAA Plan and not to any particular article, section or other portion of the CCAA Plan and includes any documents supplemental hereto; and (j) When a capitalized term used in the CCAA Plan references a definition in any other document, the CCAA Plan shall be interpreted as if the definition in that other document is included in the CCAA Plan. 1.3 Governing Law and Jurisdiction The CCAA Plan and all Definitive Documents shall be governed and construed in accordance with the laws of the Province of Ontario and the Applicable Laws of Canada, save for the Chapter 15 Proceedings which shall be subject to the jurisdiction of the US Bankruptcy Court, and the administration of the QCAP Claims Process pursuant to the Quebec Administration Plan which shall be governed by the laws of the Province of Quebec and the Applicable Laws of Canada. 1.4 Schedules The following are the Schedules to the CCAA Plan, which are incorporated by reference into the CCAA Plan and form an integral part of it: Schedule "A": Negative Notice Claims Package comprised of Statement of Negative Notice Claim (Schedule "B-1") and the Notice of Dispute of Negative Notice Claim (Schedule "B-2") Page 61 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 54 Schedule "B": Claims Package comprised of Miscellaneous Claims Instruction Letter (Schedule "A-1") and the Miscellaneous Claimant Proof of Claim (Schedule "A-2") Schedule "C": Omnibus Notice Schedule "D": Omnibus Notice Program comprised of condensed version of the Omnibus Notice (Appendix "A") and the list of the regional newspapers in which the Omnibus Notice will be published (Appendix "B") Schedule "E": Contribution Security Agreement Schedule "F": Deed of Movable Hypothec Schedule "G": Harrison Report Schedule "H": Curriculum vitae of Dr. Glenn Harrison Schedule "I": Jha Report Schedule "J": Curriculum vitae of Dr. Prabhat Jha Schedule "K": Quebec Class Action Administration Plan dated August 27, 2025 Schedule "L": Overview of Epiq's complex claims administration experience Schedule "M": Curriculum vitae of Daniel Shapiro, K.C. Schedule "N": Pan-Canadian Claimants' Compensation Plan: Methodology and Analysis dated December 5, 2024 Schedule "O": Analysis of Limitations Law applicable to Pan-Canadian Claimants dated September 2, 2020 Schedule "P": Pan-Canadian Claimants' Compensation Plan dated August 27, 2025 Schedule "Q": Resume of Dr. Robert Bell Schedule "R": Curriculum vitae of Dr. Robert Bell Schedule "S": The Cy-près Fund: Methodology and Analysis dated December 5, 2024 Schedule "T": Claimant Contractual Release – ITCAN and ITCO Schedule "U": List of Health Care Costs Recovery Actions of the Provinces and HCCR Claims asserted by Territories Schedule "V": List of Actions commenced under Provincial Class Proceedings Legislation Page 62 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 55 Schedule "W": List of Actions commenced by Individuals Schedule "X": Provincial and Territorial Liaison Committee Terms ARTICLE 2. PURPOSE AND EFFECT OF THE CCAA PLAN 2.1 Purpose The purposes of the CCAA Plan are to: (a) Effect a full and final settlement and irrevocable compromise of all Tobacco Claims; (b) Effect a release, discharge and bar of all Released Claims; (c) Eliminate liability for all Tobacco Claims for actions up to the Effective Time; (d) Effect the distributions of the Global Settlement Amount to the Claimants as set forth in Article 16, Sections 16.1, 16.2 and 16.3 herein; (e) Provide for the disposition and resolution of all Pending Litigation; (f) Effect the transfer of all of Imperial's assets, Indebtedness, liabilities and business relating to its current and future Alternative Products ("Alternative Products Business") to an unrelated company, a Canadian Affiliate of its Parent, or a Canadian Subsidiary of any other company within its Tobacco Company Group ("Newco"); and (g) Permit Imperial to exit this CCAA Proceeding and continue to carry on its business as a going concern. 2.2 Exclusion of Alternative Products from CCAA Plan Alternative Products are excluded from the CCAA Plan. The CCAA Plan shall not be applicable to any right or claim against Imperial or any member of its Tobacco Company Group relating to its development, manufacture, production, marketing, advertising, distribution, purchase or sale of Alternative Products, use of or exposure to Alternative Products, representations in respect of Alternative Products or otherwise in connection with Alternative Products. For greater certainty, the CCAA Plan shall not release any such rights or claims relating to Alternative Products against Imperial or members of its Tobacco Company Group. ARTICLE 3. CLAIMS PROCEDURE, CLASSIFICATION OF AFFECTED CREDITORS, VOTING, PROCEDURE FOR SANCTION HEARING AND RELATED MATTERS 3.1 Claims Procedure 3.1.1 CCAA Court Hearing regarding Claims Procedure The procedure for determining the validity and quantum of the Affected Claims for voting purposes shall be governed by the Statements of Negative Notice Claims, the Claims Procedure Page 63 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 56 Order, the Meeting Order, the CCAA, the CCAA Plan and any other Order of the CCAA Court, as applicable. The Court-Appointed Mediator and the Monitor will make a motion to the CCAA Court for Orders: (a) Approving the filing of the CCAA Plan; (b) Approving the Claims Procedure set forth in the Claims Procedure Order; (c) Approving the Omnibus Notice and the Omnibus Notice Program which shall include the timetable for the implementation of the Omnibus Notice Program; and (d) Approving the Meeting Order, including setting the Meeting Date, approving the classification of the Affected Creditors into one single class for the purpose of considering and voting on the CCAA Plan at the Meeting, and authorizing the Claimants' Representatives to vote on the CCAA Plan in person or by proxy at the Meeting. 3.1.2 Claims Procedure for Negative Notice Claims The procedure for addressing Negative Notice Claims shall be governed by the terms of the Claims Procedure Order including the schedules thereto. Notwithstanding the foregoing, the Monitor, in consultation with the Court-Appointed Mediator, may make minor non-substantive changes to the Negative Notice Claims Package as they may consider necessary or desirable. As soon as practicable after the date of the Claims Procedure Order, the Monitor shall cause to be sent to each Claimant's Representative a Negative Notice Claims Package which will contain a Statement of Negative Notice Claim that specifies, for voting purposes, the amount and number of votes ascribed to such Claimant's Negative Notice Claim. Attached to the CCAA Plan as Schedule "A" is the Negative Notice Claims Package comprised of the Statement of Negative Notice Claim (Schedule "B-1") and the Notice of Dispute of Negative Notice Claim (Schedule "B-2"). The Negative Notice Claims Package shall be deemed to have been received by each Claimant's Representative on the Negative Notice Issuance Date. If a Claimant wishes to dispute the amount of its Affected Claim for voting purposes and the number of votes associated therewith as set forth in the relevant Statement of Negative Notice Claim, the Claimant's Representative shall deliver to the Monitor a Notice of Dispute of Negative Notice Claim by no later than the Negative Notice Bar Date, failing which the Claimant shall be conclusively and irrevocably deemed to have accepted the Statement of Negative Notice Claim and the value and number of votes associated with its Affected Claim solely for the purpose of voting on the CCAA Plan at the Meeting. The Monitor, in consultation with the Court-Appointed Mediator, shall review any Notice of Dispute of Negative Notice Claim received and shall attempt to resolve such dispute with the relevant Claimant following receipt of the Notice of Dispute of Negative Notice Claim. In the event that the dispute is not settled, the Monitor shall refer the dispute to the CCAA Court, and provide timely notice of such hearing date to the disputing Claimant's Representative. Page 64 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;57 Unless any dispute of a Statement of Negative Notice Claim results in a revision to the value or number of votes associated with the relevant Affected Claim pursuant to the terms of the Claims Procedure Order, each of the Claimants shall be entitled to vote at the Meeting in accordance with the value and number of votes set forth on the applicable Statements of Negative Notice Claim. Except as may be required by the Meeting Order, no further steps shall be required to be taken by any of the Claimants in order for them to be able to be present and vote at the Meeting. 3.1.3 Claims Procedure for Persons, other than Claimants or Individual Claimants, to assert a Claim The Claims Procedure for Persons, other than Claimants or Individual Claimants, to file a Claim and assert the right to attend at the Meeting and vote on the CCAA Plan shall be governed by the terms of the Claims Procedure Order and schedules thereto. Save for establishing the entitlement of certain Persons to vote on the CCAA Plan, the Claims Procedure shall not constitute, nor may it be construed as, an acceptance by the CCAA Court, the Court-Appointed Mediator, the Monitor and/or Imperial of the existence, validity or value of any Claim asserted in a Miscellaneous Claimant Proof of Claim filed thereunder, including for distribution purposes under the CCAA Plan which shall be determined in accordance with the Miscellaneous Claims Procedure. The solicitation of Miscellaneous Claimant Proofs of Claim, and the filing by any Person of any Miscellaneous Claimant Proof of Claim, shall not grant such Person any rights, including without limitation, in respect of the nature, quantum and priority of its Claims or its standing in the CCAA Proceedings, except the rights specifically set out in the Claims Procedure Order. 3.1.3.1 Notification Procedure Attached to the CCAA Plan are the following schedules relating to the notification procedure for the Claims Procedure: (a) Schedule "B" is the Claims Package comprised of the Miscellaneous Claims Instruction Letter (Schedule "A-1") and the Miscellaneous Claimant Proof of Claim (Schedule "A- 2"); (b) Schedule "C" is the Omnibus Notice; and (c) Schedule "D" is the Omnibus Notice Program which includes a condensed version of the Omnibus Notice (Appendix "A" to Schedule "D") and the list of the regional newspapers in which the Omnibus Notice will be published (Appendix "B" to Schedule "D"). The Monitor shall cause the Claims Procedure Order, the Omnibus Notice and the Claims Package to be posted to the Monitor's website within five Business Days following the date of the Claims Procedure Order. The Monitor shall also cause the Omnibus Notice, the Claims Package and the Claims Procedure Order to be sent to: (i) each Person that appears on the Common Service List within five Business Days following the date of the Claims Procedure Order; and (ii) any Person that has identified itself in writing to the Monitor prior to the Miscellaneous Claims Bar Date as a Putative Miscellaneous Claimant, as soon as reasonably practicable thereafter. Page 65 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 58 Reasonable compliance with the notice program set forth in the Omnibus Notice Program shall constitute good and sufficient service and delivery of notice of the Claims Procedure Order and the Miscellaneous Claims Bar Date on all Persons that may be entitled to receive notice, and no other notice or service need be given or made and no other document or material need be sent to or served upon any Person in respect of the Claims Procedure Order. 3.1.3.2 Miscellaneous Claims Bar Date In order for a Person, other than a Claimant or an Individual Claimant, to assert a Claim and be permitted to attend the Meeting and vote thereat, such Person must file a Miscellaneous Claimant Proof of Claim with the Monitor by the Miscellaneous Claims Bar Date. Only such Persons who have filed a Miscellaneous Claimant Proof of Claim by the Miscellaneous Claims Bar Date shall be entitled to attend and vote on the CCAA Plan at the Meeting as a Putative Miscellaneous Claimant. If a Person holding any Pre-Implementation Miscellaneous Claim fails to file a Miscellaneous Claimant Proof of Claim by the Miscellaneous Claims Bar Date, in addition to being barred from attending the Meeting and voting on the CCAA Plan, such Person: (a) shall be forever barred, estopped and enjoined from asserting any Pre-Implementation Miscellaneous Claim under the Miscellaneous Claims Procedure; (b) shall not be entitled to receive any distribution under the CCAA Plan in respect of any such Pre-Implementation Miscellaneous Claim, including from the Imperial Miscellaneous Claims Fund, RBH Miscellaneous Claims Fund and JTIM Miscellaneous Claims Fund; and (c) shall be bound by and subject to the Release and injunctions set forth in Article 18, Section 18.1 of the CCAA Plan in respect of any such Pre-Implementation Miscellaneous Claim. The filing by any Person of a Miscellaneous Claimant Proof of Claim shall not constitute a determination of the existence, validity or value of such Miscellaneous Claim and shall not entitle such Person to any distribution under the CCAA Plan, or otherwise. For certainty, subject to a Miscellaneous Claimant Proof of Claim being filed by the Miscellaneous Claims Bar Date, provided that the CCAA Plan is approved by the Affected Creditor Class, sanctioned by the CCAA Court, and implemented, any Person who purports to have a Miscellaneous Claim shall be obliged to follow the procedure set forth in the Miscellaneous Claims Procedure to prove the existence, validity and value of such Miscellaneous Claim. Any Miscellaneous Claimant Proof of Claim in a foreign currency that is filed with the Monitor shall be converted by the Monitor to Canadian dollars at the applicable Bank of Canada exchange rate at 12:00 pm on March 8, 2019. 3.1.3.3 Monitor's Role for Purposes of the Meeting and the Vote In addition to its prescribed rights, duties, responsibilities and obligations under the CCAA, the Initial Order and any other Orders of the CCAA Court in the CCAA Proceeding, the Monitor shall administer the Claims Procedure and take such other actions and fulfill such other roles as are Page 66 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 59 authorized by the Claims Procedure Order or incidental thereto. The Monitor shall seek such assistance as may be reasonably required from the Court-Appointed Mediator, Imperial and the Claimants, as applicable, to carry out the terms of the Claims Procedure Order. Subject to the approval of the CCAA Court, the Monitor, in consultation with the Court-Appointed Mediator, will be authorized pursuant to the Claims Procedure Order to use its reasonable discretion as to the adequacy of compliance with respect to the manner and timing in which forms delivered pursuant to the Claims Procedure Order are completed and executed, and may, where it is satisfied that a Miscellaneous Claimant Proof of Claim has been adequately filed, waive strict compliance with the requirements of the Claims Procedure Order as to completion and execution of such forms. Notwithstanding any other provision of the Claims Procedure Order, any Miscellaneous Claimant Proof of Claim filed with the Monitor after the Miscellaneous Claims Bar Date but prior to the Meeting may, in the reasonable discretion of the Monitor or subject to further Order of the Court, be deemed to have been filed before the Miscellaneous Claims Bar Date, and may be treated by the Monitor in accordance with the Claims Procedure. The Monitor shall receive and keep a record of all Miscellaneous Claimant Proofs of Claim filed in order to prepare a list of Persons, in addition to the Claimants, entitled to attend and vote at the Meeting, but the Monitor shall not be required to make any inquiry or assessment as to the validity or quantification of any such Miscellaneous Claimant Proofs of Claim that it may receive, provided that the Monitor shall be entitled, in its sole discretion, to seek further direction from the CCAA Court with respect to any Miscellaneous Claimant Proof of Claim filed if the Monitor considers such direction necessary, including for the conduct of the Meeting. Notwithstanding the foregoing, the Monitor shall not take into consideration any Miscellaneous Claimant Proof of Claim filed either by an Individual Claimant or on behalf of any group of Individual Claimants, as all Individual Claimants are represented by either the PCC Representative Counsel or the Quebec Class Counsel, as the case may be. For greater certainty, no Individual Claimant nor any Person purporting to represent any Individual Claimants (other than the PCC Representative Counsel and Quebec Class Counsel) shall be permitted to attend or vote at the Meeting. At the Meeting, the Monitor shall keep distinct ledgers in order to tally the votes of all Persons that file a Miscellaneous Claimant Proof of Claim separately from the votes of the Claimants, and it shall report to the CCAA Court on the results recorded on each such ledger at the Sanction Hearing. Notwithstanding the foregoing, and without accepting the existence, validity or value of any Miscellaneous Claimant Proof of Claim received, any votes recorded by the Monitor for such Persons shall be deemed to be included in the Affected Creditor Class in accordance with the Meeting Order. 3.2 Classification of Creditors In accordance with the Meeting Order, the Affected Creditors shall be placed into one single class for the purpose of considering and voting on the CCAA Plan at the Meeting. Page 67 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 60 3.3 Meeting of Affected Creditors The Meeting shall be held in accordance with the CCAA Plan, the Meeting Order and any further Order of the CCAA Court. The only Persons entitled to attend and vote on the CCAA Plan at the Meeting are those specified in the Meeting Order and any further Order of the CCAA Court. 3.4 Approval by Creditors In order to be approved, the CCAA Plan must receive the affirmative vote of the Required Majority of the Affected Creditor Class. 3.5 Voting of the Affected Creditor Class The Affected Creditors in the Affected Creditor Class who are entitled to vote at the Meeting, pursuant to and in accordance with the Claims Procedure Order, the Meeting Order, the CCAA Plan and the CCAA, shall be entitled to the following number of votes representing the amount equal to their respective Voting Claims: (a) The Quebec Class Action Plaintiffs shall be entitled to a total of 99,958 votes; (b) The Pan-Canadian Claimants shall be entitled to a total of 186,003 votes; (c) Each Province shall be entitled to a total of 1 vote; (d) Each Territory shall be entitled to a total of 1 vote; (e) Canada shall be entitled to a total of 1 vote; (f) The Ontario Flue-Cured Tobacco Growers' Marketing Board plus the Tobacco Producers shall be entitled to a total of 3,930 votes; and (g) The Knight Class Action Plaintiffs shall be entitled to a total of 1 vote. In addition to the foregoing, any Putative Miscellaneous Claimant that files a Miscellaneous Claimant Proof of Claim in conformity with the Claims Procedure shall be entitled to a total of 1 vote. 3.6 Unaffected Creditors No Unaffected Creditor, in respect of an Unaffected Claim, shall be entitled to: (a) vote on the CCAA Plan; (b) attend the Meeting; or (c) receive any distributions pursuant to the CCAA Plan, other than its right to have its Unaffected Claim addressed in accordance with Article 3, Section 3.7 of the CCAA Plan. Page 68 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61 3.7 Treatment of Unaffected Claims Unaffected Claims are not compromised by the CCAA Plan and shall remain in full force and effect in accordance with their terms. Subject to Article 5, Section 5.15, Unaffected Claims shall be paid by Imperial in the Ordinary Course of Business as and when they become due, further subject only to Imperial's rights and defences, both legal and equitable, with respect to any Unaffected Claim, including any entitlement to set-off, compensation or recoupment. 3.8 Extinguishment of Claims At the Effective Time, in accordance with the terms of the CCAA Plan and the Sanction Order, the treatment of Affected Claims and Released Claims will be final and binding on Imperial, the Affected Creditors, and any Person with an Affected Claim or a Released Claim. Save and except as set out in the CCAA Plan, the Released Parties will have no further obligation whatsoever in respect of the Affected Claims and the Released Claims, as applicable. 3.9 Guarantees and Similar Covenants No Person who has a Claim under any guarantee, surety, indemnity or similar covenant in respect of any Claim that is compromised and released under the CCAA Plan or who has any right to claim over in respect of, or to be subrogated to, the rights of any Person in respect of a Claim that is compromised under the CCAA Plan will be entitled to any greater rights as against Imperial than the Person whose Claim is compromised under the CCAA Plan. 3.10 Procedure for Sanction Hearing 3.10.1 CCAA Court Hearing regarding Procedure for Sanction Hearing Subsequent to the Meeting, the Court-Appointed Mediator and the Monitor will report to the CCAA Court regarding the results of the vote on the CCAA Plan at the Meeting. If the CCAA Plan received the affirmative vote of the Required Majority of the Affected Creditor Class, then the Monitor will make a motion to the CCAA Court for Orders: (a) Setting the date for the Sanction Hearing; (b) Approving the Omnibus Sanction Hearing Notice and the Omnibus Sanction Hearing Notice Program, including the timetable for implementation of the Omnibus Sanction Hearing Notice Program; (c) Setting the date for the filing of any Sanction Hearing Objection Notices with the Monitor which will be dealt with at the Sanction Hearing; (d) Establishing the litigation timetable leading up to the Sanction Hearing, including the dates for the filing of motion records, factums and any reply motion materials; and (e) Establishing the agenda and procedure for the Sanction Hearing. Page 69 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 62 3.10.2 Omnibus Sanction Hearing Notice The form and content of the Omnibus Sanction Hearing Notice and the manner and extent of publication of such notice are subject to the approval of the CCAA Court. By no later than 5:00 p.m. (Eastern Time) on the 30th calendar day prior to the Sanction Hearing, the Monitor shall cause the Omnibus Sanction Hearing Notice to be sent in accordance with the Omnibus Sanction Hearing Notice Program: (a) To each Person that appears on the Common Service List; (b) To any Person known to Imperial or the Monitor as having a potential Affected Claim based on the books and records of Imperial that is not captured in any Statement of Negative Notice Claim or in any Miscellaneous Claimant Proof of Claim; (c) To any Putative Miscellaneous Claimant who has identified itself to Imperial and/or the Monitor prior to the publication of the Omnibus Sanction Hearing Notice; and (d) By way of general notice to any other Persons in Canada who may potentially be affected by the CCAA Plan as a Putative Miscellaneous Claimant. The Omnibus Sanction Hearing Notice will: (a) Include the CCAA Plan attached as a schedule; (b) Specify the date, time and mode of hearing of the Sanction Hearing; (c) Advise that at the Sanction Hearing the Court-Appointed Mediator and the Monitor will be seeking the granting of the Sanction Order sanctioning the CCAA Plan under the CCAA and ancillary relief relating to such sanction; and (d) Advise that any Putative Miscellaneous Claimant who wishes to oppose the granting of the Sanction Order must serve on all Persons on the Common Service List and file with the CCAA Court a copy of the materials to be used to oppose the Sanction Order by no later than 5:00 p.m. (Eastern Time) 14 calendar days prior to the Sanction Hearing. The materials delivered by any Person desiring to oppose the granting of the Sanction Order shall specify their objection with particularity and the remedies, if any, that are sought. 3.10.3 Omnibus Sanction Hearing Notice Program The Omnibus Sanction Hearing Notice Program is subject to the approval of the CCAA Court. It will be designed to effectively reach as many Persons across Canada as possible, including any Putative Miscellaneous Claimants, and capture their attention with notice of the Sanction Hearing communicated in clear, concise, plain language so that such Persons may fully understand their rights and options. A pan-Canadian notice program will be implemented to widely communicate the Omnibus Sanction Hearing Notice throughout Canada using various mediums and platforms. Page 70 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 63 3.10.4 Sanction Hearing If the CCAA Plan receives the affirmative vote of the Required Majority of the Affected Creditor Class at the Meeting in conformity with the Meeting Order and the CCAA, then the Monitor will make a motion to the CCAA Court for Orders: (a) Approving and sanctioning the CCAA Plan and ordering the releases and injunctions necessary to implement the CCAA Plan and give effect to the settlement contemplated thereby; (b) Authorizing and directing Imperial, the Monitor, the Claimants, the Claimants' Representatives and other Persons as applicable to take all steps and actions and to do all things necessary or appropriate to implement and give effect to the transactions contemplated by the CCAA Plan in accordance with and subject to its terms and conditions; and (c) Granting such other relief as necessary, appropriate and the CCAA Court may allow to implement and give effect to the transactions contemplated by the CCAA Plan. ARTICLE 4. RESTRUCTURING STEPS 4.1 Transfer of Alternative Products Business to Newco On a date to be agreed between Imperial and the CCAA Plan Administrators, Imperial shall take actions as may be necessary or appropriate to effect the restructuring of its business by transferring its Alternative Products Business to Newco. Such actions may include: (i) the execution and delivery of appropriate articles, agreements or other documents of incorporation, merger, amalgamation, consolidation, arrangement, continuation, restructuring or other transactions containing terms that are consistent with the terms of the CCAA Plan; (ii) the execution and delivery of appropriate instruments of transfer, assignment, assumption including, where applicable, with respect to the assumption of liabilities upon the transfer or assignment of assets on terms consistent with the terms of the CCAA Plan in each case without the need to obtain any consent of any Person; (iii) the filing of appropriate articles, agreements or other documents of incorporation, merger, amalgamation, consolidation, arrangement, continuation, restructuring or other transaction with the appropriate Governmental Authorities under Applicable Laws; and (iv) all other actions that Imperial determines are necessary or appropriate to give effect to the transfer of its Alternative Products Business to Newco, including the making of filings or recordings in connection with such transactions. The organization, incorporating documents, articles, by-laws and other constating documents of Newco (including any shareholders agreement, shareholders rights plan and classes of shares (voting and non-voting)) shall be in form and substance reasonably satisfactory to the Court- Appointed Mediator, the CCAA Plan Administrator and the Claimants. All of the steps, terms, transactions and documents relating to the conveyance of the Alternative Products Business to Newco in accordance with the CCAA Plan shall be in form and in substance acceptable to the Court-Appointed Mediator, the CCAA Plan Administrator and the Claimants. Page 71 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 64 4.2 Restructuring Steps At the Effective Time, the following will occur and be deemed to have occurred in the order set out below unless otherwise specified in this Article 4 and become effective without any further act or formality: (a) Imperial shall deposit its Upfront Contribution into the Imperial Global Settlement Trust Account; (b) Intentionally deleted; (c) The Contribution Security Agreement and the other Contribution Security contemplated therein, including the Deed of Movable Hypothec, will have become or will become effective; (d) The Sales and Excise Tax Charge and Directors' Charge will be terminated, discharged, expunged and released; (e) The amount of $25.0 million shall be paid out of Imperial's Upfront Contribution and deposited from the Imperial Global Settlement Trust Account into the Imperial CCAA Plan Administration Reserve Account to establish the Imperial CCAA Plan Administration Reserve; (f) The amount of the Imperial PCC Compensation Plan Reserve, to be determined pursuant to Article 15, Section 15.2 herein, shall be paid out of Imperial's Upfront Contribution and deposited into the Imperial PCC Compensation Plan Reserve Account to establish the Imperial PCC Compensation Plan Reserve; (g) The amount of the Imperial Miscellaneous Claims Fund, to be determined pursuant to Article 18, Section 18.2.1 herein, shall be paid out of Imperial's Upfront Contribution and deposited into the Imperial Miscellaneous Claims Fund; (h) The distributions that are required to be paid to the Claimants on the Plan Implementation Date shall be paid in full as set forth in the CCAA Plan; (i) All Affected Claims and Released Claims will be fully, finally, irrevocably and forever released, discharged, barred and enjoined in accordance with Article 3, Section 3.8 and Article 18, Sections 18.1 to 18.1.10, and all notes, certificates and other instruments evidencing Affected Claims and Released Claims (and all guarantees associated with each of the foregoing) will be deemed cancelled and extinguished and be null and void in accordance with Article 17, Section 17.9; (j) The Claimant Contractual Release will become effective in accordance with its terms; and (k) The Stay Period will terminate, Page 72 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65 (collectively, the "Restructuring Steps"). The failure of the CCAA Plan to incorporate any provision of a document evidencing a Restructuring Step will not derogate from the enforceability of such provision. 4.3 Corporate Approvals At the Effective Time, all corporate actions of Imperial contemplated by the CCAA Plan, including those required for the transfer of Imperial's Alternative Products Business to Newco, shall be deemed to have been authorized and approved in all respects (subject to the provisions of the CCAA Plan). All matters provided for in the CCAA Plan shall be deemed to have timely occurred, in accordance with Applicable Laws, and shall be effective, without any requirement of further action by the Affected Creditors, directors, officers, or managers of Imperial. On the Plan Implementation Date, the appropriate directors and officers of Imperial shall be authorized and directed to issue, execute and deliver the agreements, documents, securities and instruments contemplated by the CCAA Plan including with respect to the transfer of Imperial's Alternative Products Business to Newco, in the name of and on behalf thereof. ARTICLE 5. CCAA PLAN CONSIDERATION 5.1 Global Settlement Amount The global settlement amount under the CCAA Plan shall be $32.5 billion (the "Global Settlement Amount"). 5.2 Intentionally deleted 5.3 Global Settlement Trust Account and Supplemental Trust Account Pursuant to the Banking Arrangements Order, the CCAA Court approved the engagement of BMO to act as the Trustee of the Imperial Global Settlement Trust and the Bare Trustee of the Imperial Supplemental Trust. Subject to the approval of the CCAA Court, BMO shall be engaged to act as the Trustee of the Imperial CCAA Plan Administration Reserve Trust. Prior to the Plan Implementation Date, ITCAN and the Original Trustee shall enter into the Imperial Deed pursuant to which legal ownership of the Imperial Global Settlement Trust shall be vested in and administered and managed exclusively by the Trustees in accordance with the terms of the Imperial Deed. Prior to the Plan Implementation Date, ITCAN and the Bare Trustees shall enter into the Imperial Tobacco Supplemental Trust Agreement pursuant to which legal title of the Imperial Supplemental Trust Agreement Funds shall be held by the Bare Trustees in accordance with the terms hereof and of the Imperial Tobacco Supplemental Trust Agreement. Imperial shall deposit its Contributions, less applicable Reserved Amounts, into a segregated interest-bearing trust account or trust accounts ("Imperial Global Settlement Trust Account") (for greater certainty, each of the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account shall be established in the Bank and held by the Trustees). Imperial shall deposit its Reserved Amounts into an interest- Page 73 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 66 bearing trust account or trust accounts ("Imperial Supplemental Trust Account") (for greater certainty, each of the Imperial Supplemental Trust Account, RBH Supplemental Trust Account and JTIM Supplemental Trust Account shall be established in the Bank and held by the Bare Trustees). The Imperial Global Settlement Trust Account and Imperial Supplemental Trust Account shall be held in Schedule I Chartered Banks designated by the CCAA Plan Administrators, or in a syndicate of Schedule I Chartered Banks which may include such financial institutions as may be approved and designated by the CCAA Plan Administrators ("Bank"). ITCAN shall be the beneficial owner of the funds in the Imperial Supplemental Trust and the Bare Trustees shall act as agent for ITCAN pursuant to the terms of the Imperial Tobacco Supplemental Trust Agreement. Imperial shall not agree to any amendment of the Imperial Tobacco Supplemental Trust or otherwise alter its terms except in accordance with an order of the CCAA Court. ITCAN shall report all income, gains and losses, if any, derived from the Imperial Supplemental Trust Agreement Funds in computing its income for purpose of the ITA and all corresponding provincial or territorial legislation and shall prepare and file any and all tax returns prepared, filed or required to be prepared or filed in accordance with the foregoing. Imperial shall prepare and file prior to the relevant filing due date all tax and information returns required to be prepared in respect of the Imperial Supplemental Trust or Imperial Supplemental Trust Agreement Funds pursuant to the provisions of the ITA and regulations thereunder and any other applicable provincial or territorial tax legislation. 5.4 Upfront Contributions On or before the Plan Implementation Date, each of Imperial, RBH and JTIM shall make a cash contribution which shall be deposited, respectively, into the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account (collectively, the "Upfront Contributions"). The Upfront Contributions shall equal the aggregate of each Tobacco Company's cash and cash equivalents generated from all sources by each Tobacco Company as at the month end prior to the Plan Implementation Date, including all amounts that are cash collateral for any outstanding letters of credit, surety or bonding obligations to the issuers thereof, plus the Cash Security Deposits, less the sum of $750 million which shall be deducted from the aggregate amount and retained by RBH (the "RBH Retained Amount"). RBH shall be free to deal in its sole discretion with the RBH Retained Amount, including being free to transfer or distribute such monies outside of Canada in such manner as RBH may determine. For greater certainty, any such transfers or distributions of the RBH Retained Amount will be deemed to be a Permitted Transfer for the purposes of Article 11. Notwithstanding the foregoing: (a) The Cash Security Deposits may be deposited into the Imperial Global Settlement Trust Account and the RBH Global Settlement Trust Account in whole or in part as soon as practicable after the Plan Implementation Date. Any portion of the Cash Security Deposits that is deposited into the Imperial Global Settlement Trust Account and RBH Global Settlement Trust Account on or before the Plan Implementation Date shall be distributed to the Claimants and the Cy-près Foundation pro rata in accordance with the Claimant Allocation. As and when payments on account of the Cash Security Deposits are deposited Page 74 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 67 by the Minister of Finance of Quebec into the Imperial Global Settlement Trust Account and RBH Global Settlement Trust Account after the Plan Implementation Date, such payments shall be distributed to the Claimants and the Cy-près Foundation pro rata in accordance with the Claimant Allocation; (b) Any portion of Imperial's Upfront Contribution (solely because, and to the extent, such funds remain as cash collateral for any outstanding letters of credit, surety or bonding obligations), and any applicable insurance proceeds, which are not available for deposit into the Imperial Global Settlement Trust Account on or before the Plan Implementation Date, shall be distributed to the Claimants and the Cy-près Foundation pro rata in accordance with the Claimant Allocation. As and when payments on account of the balance of Imperial's Upfront Contributions are deposited by Imperial into the Imperial Global Settlement Trust Account after the Plan Implementation Date, such payments shall be paid and distributed to the Claimants and the Cy-près Foundation pro rata in accordance with the Claimant Allocation. For the avoidance of doubt, Imperial shall use commercially reasonable efforts to deposit such remaining portion of its Upfront Contribution (and any applicable insurance proceeds) into the Imperial Global Settlement Trust Account as soon as possible after the Plan Implementation Date; and (c) Any portion of JTIM's Upfront Contribution which is not available for deposit into the JTIM Global Settlement Trust Account on or before the Plan Implementation Date, solely because, and to the extent, such funds remain pledged by JTIM as cash collateral, shall be distributed to the Claimants and the Cy-près Foundation pro rata in accordance with the Claimant Allocation. As and when payments on account of the balance of JTIM's Upfront Contributions are deposited by JTIM into the JTIM Global Settlement Trust Account after the Plan Implementation Date, such payments shall be paid distributed to the Claimants and the Cy-près Foundation pro rata in accordance with the Claimant Allocation. For the avoidance of doubt, JTIM shall use commercially reasonable efforts to deposit such remaining portion of its Upfront Contribution into the JTIM Global Settlement Trust Account as soon as possible after the Plan Implementation Date. 5.5 Reserved Amounts Imperial shall make a cash payment equal to any Reserved Amounts into the Imperial Supplemental Trust Account at the times referred to in this Section 5.5. Imperial shall pay its Tax Refund Cash Payment into the Imperial Supplemental Trust Account within 30 days after its receipt of the applicable Tax Refund. If Imperial receives its Tax Refund Cash Payment in instalments, it shall pay for deposit into the Imperial Supplemental Trust Account 100% of each instalment received within 30 days after its receipt of each instalment. Imperial shall pay its respective Annual Amount into the Imperial Supplemental Trust Account on or before the 30th day following its tax filing due date for the relevant taxation year for which the Annual Contribution is made (or in the case of the final calendar year of the Contribution Period, on or before the 182nd day following the end of the Contribution Period). Imperial shall pay its respective Carry Amount into the Imperial Supplemental Trust Account within 30 days after its tax filing due date for the taxation year to which the relevant Tax Attribute is carried forward (or in the case of the final calendar year of the Contribution Period, on or before the 182nd day following the end of the Contribution Period). Page 75 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 68 For certainty and to avoid duplication, any Tax Refund Cash Payment will not be taken into account in the Metric used to compute the Annual Contributions. Reserved Amounts of Imperial shall be released from the Imperial Supplemental Trust Account in the following circumstances: (a) in respect of Annual Amounts and Carry Amounts (and income reasonably considered to be earned on such amounts while held in the Imperial Supplemental Trust Account), consistent with the Annual Contribution percentage in respect of the relevant Annual Contributions (in the case of a Carry Amount, the Annual Contribution percentage in respect of the Annual Contribution for the tax year in which the Tax Attribute is utilized) provided for in this CCAA Plan and in the case of a Tax Refund Cash Payment (and income reasonably considered earned on such Tax Refund Cash Payments while held in the Imperial Supplemental Trust Account), 85.0% to the Imperial Global Settlement Trust Account and 15.0% to Imperial, in each case, 30 days following the expiry of the last applicable Normal Reassessment Period (or, such earlier time as determined by Imperial with the concurrence of the CCAA Plan Administrator, acting reasonably) in respect of the relevant taxation year of Imperial to which the Reserved Amount relates, being (i) in the case of an Annual Amount, the taxation year in which the relevant Annual Contribution is deducted in computing income for tax purposes, (ii) in the case of a Tax Refund Cash Payment, the taxation year to which the relevant Tax Refund relates and (iii) in the case of a Carry Amount, the taxation year to which the relevant Tax Attribute has been carried forward; (b) to a relevant Tax Authority on account of a notice of assessment or reassessment of Taxes (including any related assessed interest or penalties) related to a Tax Matter of Imperial issued by a Tax Authority with the concurrence of the CCAA Plan Administrator (such concurrence not to be unreasonably withheld). Any amounts released to a Tax Authority on behalf of Imperial shall be excluded from the Contributions made by Imperial at any time. For greater certainty, should there be a dispute regarding a notice of assessment or reassessment of Taxes, interest or penalties, the CCAA Plan Administrator, at the request of Imperial, shall transfer the amount requested by Imperial (not exceeding 100% of any Taxes, interest and penalties assessed) to the relevant Tax Authority pending final resolution of the dispute; or (c) to Imperial, following termination of the Contribution Period with the concurrence of the CCAA Plan Administrator (such concurrence not to be unreasonably withheld). Imperial shall only instruct the Bare Trustee to release Imperial Supplemental Trust Agreement Funds in accordance with the foregoing. 5.6 Annual Contributions On or before the July 30th following each calendar year during the Contribution Period (or in the case of the final calendar year of the Contribution Period, on or before the 182nd day following the end of the Contribution Period), Imperial shall deposit into the Imperial Global Settlement Trust Account or the Imperial Supplemental Trust Account, as applicable, payments calculated in accordance with the Metric (collectively, the "Annual Contributions"), until such time as the total Contributions, in the aggregate, equal the Global Settlement Amount. Page 76 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69 The CCAA Plan provides that net after-tax income is used in the calculation of the Annual Contributions in accordance with a metric ("Metric"). The Metric is the method by which, on an annual basis, the profits of the operating business of Imperial and any additional realization of assets are calculated, excluding the Alternative Products Business to be carved out in accordance with Section 5.7 ("Net After-Tax Income"). For greater certainty, the Metric will: (a) Be based on the amount generated from all sources by Imperial, excluding Alternative Products; (b) Include interest income (other than income earned on the Reserved Amounts held in the Imperial Supplemental Trust Account, until and only to the extent such income is released to Imperial); (c) Include the proceeds of any disposition of any assets, including capital assets and intangible assets; (d) Exclude one-time accounting adjustments that are non-operational in nature; (e) Exclude one-time restructuring and global settlement related adjustments that are non- operational in nature (for greater certainty, this includes the recognition of any global settlement liability and/or associated expense of that liability). Subparagraph (e) is not intended to exclude cash expenses associated with CCAA Plan implementation including: (i) the Costs for the services of the CCAA Plan Administrators; (ii) the Costs for the services of the Claims Administrator (both as administrator and PCC Agent) in respect of the administration of the PCC Compensation Plan; (iii) the Costs for the services of the Administrative Coordinator; and (iv) the Costs for the services of the PCC Representative Counsel; (f) Exclude interest expense to related parties; and (g) Exclude any penalties and fines imposed by taxing and/or regulatory authorities. The Annual Contributions required to be made for deposit into the Imperial Global Settlement Trust Account by Imperial for each year during the Contribution Period shall be calculated as follows: (a) In years 1-5 (adjusted to take into account any stub period as appropriate, including eliminating the portion of the first year that occurs prior to the last day of the month prior to the Plan Implementation Date) following the last day of the month prior to the Plan Implementation Date, 85.0% of the amount calculated pursuant to the Metric; (b) In years 6-10 following the Plan Implementation Date, 80.0% of the amount calculated pursuant to the Metric; (c) In years 11-15 following the Plan Implementation Date, 75.0% of the amount calculated pursuant to the Metric; and Page 77 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 70 (d) In year 16 following the Plan Implementation Date, 70.0% of the amount calculated pursuant to the Metric, and continuing thereafter until the aggregate of the Contributions totals the Global Settlement Amount. For greater certainty, the percentage of the Annual Contributions payable by Imperial shall commence at 85.0% in years 1-5 (adjusted to take into account any stub period as applicable) following the last day of the month prior to the Plan Implementation Date and, thereafter, shall be reduced in 5.0% increments every five years until the percentage reaches 70.0% in year 16, and shall continue fixed at 70.0% thereafter until such time as the Global Settlement Amount has been paid in full. Notwithstanding the foregoing and without limiting the Claimants' rights in respect of an Event of Default, Imperial shall only be permitted to reduce the percentage of the Annual Contributions by the next 5% increment provided that Imperial has made all of the payments of Annual Contributions due and owing for all prior periods. The Annual Contributions to be made by Imperial for the first and final calendar years of the Contribution Period shall be pro-rated to ensure that the Global Settlement Amount is not exceeded. 5.7 Exclusion of Alternative Products from Metric All revenues from Alternative Products and all proceeds from any disposition of any assets related to the Alternative Products shall be excluded from the Metric, and all capital expenditures, fees, costs, disbursements, indebtedness, liabilities, expenses and other expenditures of any kind whatsoever, irrespective of whether they are made in the Ordinary Course of Business, that are made in respect of or relating to any Alternative Products shall be excluded from the Metric and shall not be charged against the revenue from Tobacco Products. Within sixty days before the Plan Implementation Date, Imperial shall provide to the CCAA Plan Administrators a list of all its Tobacco Products that shall be included in the Metric and a list of all its Alternative Products that shall be excluded from the Metric. 5.8 Contribution Period Imperial, RBH and JTIM shall only be required to pay Annual Contributions and Reserved Amounts into, respectively, the Imperial Global Settlement Trust Account and Imperial Supplemental Trust Account, the RBH Global Settlement Trust Account and RBH Supplemental Trust Account, and the JTIM Global Settlement Trust Account and JTIM Supplemental Trust Account during the period from the last day of the month prior to the Plan Implementation Date to the date that the aggregate amount of the Contributions paid into the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account (including the RBH CCAA Plan Administration Reserve) and, JTIM Global Settlement Trust Account equals the Global Settlement Amount (the "Contribution Period"), and upon payment of the Global Settlement Amount in full, the Tobacco Companies' obligations in respect of the CCAA Plans shall terminate. For greater certainty, the Contribution Period shall include the period of time during which any debt collection or other enforcement proceedings are pursued by any of the Claimants. Page 78 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 71 5.9 Several Liability The obligations of the Tobacco Companies under their CCAA Plans to pay their respective Upfront Contributions, Annual Contributions and Reserved Amounts for deposit into their respective Tobacco Company's Global Settlement Trust Accounts and Tobacco Company's Supplemental Trust Accounts, shall be several and not joint and several. 5.10 No Admission of Liability Nothing in the CCAA Plan or in any other Definitive Document is or shall be deemed to be an admission of fact or liability of any kind by any member of the Tobacco Company Group. 5.11 Retention/Transfer of Cash During the Contribution Period, in each year until the end of the Contribution Period, Imperial shall retain its cash, cash equivalents and investments earned in respect of that year in Canada until such time as the Annual Contribution and Reserved Amounts owing in respect of that fiscal year have been deposited into the Imperial Global Settlement Trust Account or Imperial Supplemental Trust Account. Each year, after such deposit has been made in respect of that year, and provided that the amounts of the Annual Contribution and Reserved Amounts are not in dispute between the Parties, Imperial shall be free to deal in its sole discretion with its respective share of the Net After-Tax Income and any amounts released from the Imperial Supplemental Trust Account to Imperial that remain with Imperial, including being free to transfer or distribute such monies outside of Canada in such manner as Imperial may determine. Notwithstanding the foregoing, in the event that there is a dispute regarding the amount of Imperial's share of the Annual Contributions and/or the relevant Reserved Amounts: (a) Imperial shall preserve and retain in Canada the amount that is in dispute out of its share of the Net After-Tax Income and any amounts released from the Imperial Supplemental Trust Account to Imperial in respect of that year until such time as such dispute is fully and finally resolved and the balance of the Annual Contribution and any relevant Reserved Amounts, if any, determined to be owing by Imperial to the Claimants has been deposited in full into the Imperial Global Settlement Trust Account and Imperial Supplemental Trust Account, as applicable, or as otherwise ordered by the CCAA Court; and (b) Imperial shall be required to deposit into the Imperial Global Settlement Trust Account and the Imperial Supplemental Trust Account, as applicable, the amount of the Annual Contribution and/or Reserved Amounts, as applicable, that Imperial does not dispute is due and payable by it. After the dispute has been fully and finally resolved, Imperial shall be free to deal in its sole discretion with the balance remaining of its respective share of the Net After-Tax Income and any amounts released from the Imperial Supplemental Trust Account to Imperial, including being free to transfer or distribute such monies outside of Canada in such manner as Imperial may determine. Provided that it is not alleged that RBH and JTIM are in any way implicated or involved in, or responsible for, the dispute regarding the amount of Imperial's share of the Annual Contributions and/or the amount of Imperial's Reserved Amounts, RBH and JTIM shall be free to deal in their sole discretion with their respective shares of the Net After-Tax Income and amounts released from Page 79 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 72 the RBH Supplemental Trust Account to RBH and/or from the JTIM Supplemental Trust Account to JTIM that remain with RBH and JTIM, as applicable, including being free to transfer or distribute such monies outside of Canada in such manner as RBH and JTIM may determine. 5.12 Transparency of Payments by Tobacco Companies The amounts of all Contributions and Reserved Amounts paid by Imperial pursuant to the terms of the CCAA Plan shall be fully disclosed to the Provinces and Territories and counsel for any Impacted Claimants, pursuant to and in accordance with the CCAA Plan Administrator Appointment Order, to enable the Provinces and Territories and any Impacted Claimants to verify that the Contributions and Reserved Amounts have been calculated accurately in accordance with the Metric and all other applicable terms of the Definitive Documents. 5.13 Contribution Security On or prior to the Plan Implementation Date, Imperial and its Material Subsidiaries shall enter into an agreement ("Contribution Security Agreement") granting security, including a Deed of Movable Hypothec, to the Collateral Agent for the exclusive benefit of the Claimants over all of its present and after acquired assets, undertakings and properties and otherwise as may be agreed, to secure the obligations of Imperial to make the Annual Contributions and Reserved Amounts (the "Contribution Security"). Notwithstanding the foregoing, the Contribution Security Agreement shall not constitute an assignment, transfer, conveyance, mortgage, charge, pledge, hypothecation or grant of a security interest in any and all of the personal property, assets and undertakings of Imperial and its Material Subsidiaries relating solely to the Alternative Products Business. Recourse to the Contribution Security shall only be available upon the occurrence of an Event of Default which is not cured pursuant to Article 12, Section 12.3. The Collateral Agent shall have no rights to enforce the Contribution Security in the event of the occurrence of a Breach. The Contribution Security Agreement is attached to the CCAA Plan as Schedule "E", and the Deed of Movable Hypothec as Schedule "F". The Collateral Agent, to be engaged in accordance with the terms of the Imperial Collateral Agency Agreement which is subject to the approval of the CCAA Court, shall agree pursuant to the terms of any required intercreditor agreement on market terms to be agreed, to subordinate the Contribution Security to (i) any statutory deemed trusts; and (ii) any security granted (or to be granted) by Imperial to any lender in connection with an operating facility on market terms with a principal amount that does not exceed an amount to be agreed in respect of Imperial. Subject to the terms of an NDA entered into between Imperial and the Claimants, Imperial shall provide to the Claimants the full particulars regarding the assets, undertakings and properties over which Imperial and its Material Subsidiaries shall grant security. 5.14 Parent and Tobacco Company Group Support through Intercompany Transactions During the Contribution Period, Imperial's Parent and the relevant Affiliates within its Tobacco Company Group shall continue to provide to Imperial and its Subsidiaries shared services and other operational support ("Intercompany Services") pursuant to the Intercompany Transactions that are in place on the Plan Implementation Date, or new Intercompany Services that are part of a broader operational restructuring among Imperial's Tobacco Company Group. The provision of Page 80 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;73 such Intercompany Services shall be (a) consistent with existing arrangements or past practice, or as otherwise approved by the CCAA Plan Administrators, and (b) in compliance with Applicable Law and subject to the Tobacco Company Group's transfer pricing policies across global markets, and (c) subject to normal course market adjustments. Any adjustments to Intercompany Services within Imperial's Tobacco Company Group shall not affect Imperial in a manner that is materially less favourable as compared to the terms on which similar Intercompany Services are provided to any other members of Imperial's Tobacco Company Group. The chief financial officer of Imperial shall certify that any adjustments to the Intercompany Services are consistent with the treatment of the other companies within the Tobacco Company Group. Any such certification shall not give rise to any personal liability on the part of the applicable certifying officer. Imperial, its Parent and the relevant Affiliates within its Tobacco Company Group shall: (a) maintain and not make any revision to or variation of the terms of any Intercompany Transaction, including the withdrawal, termination or cessation of the Intercompany Transaction; and (b) shall maintain and not make any material change to its related party Canadian trademark and other intellectual property licensing arrangements, together with the structure and pricing methodology currently used for carrying on business in Canada, except in compliance with the requirements set out in this Section 5.14. In the event that Imperial is no longer Financially Viable due to circumstances beyond the control of Imperial or its Tobacco Company Group, Imperial's Parent may give the CCAA Plan Administrators, the Provinces and Territories, the Impacted Claimants and the other Tobacco Companies one year's notice of its intention to discontinue its Canadian operations. If the CCAA Plan Administrators are satisfied, based on the financial information made available to them by Imperial pursuant to the CCAA Plan, that Imperial is no longer Financially Viable due to circumstances beyond the control of Imperial or its Tobacco Company Group, then they will communicate such position to the Provinces and Territories and the Impacted Claimants. If each of the Provinces and Territories and the Impacted Claimants accept such position, then Imperial's Parent may discontinue the provision of shared services and other operational support on the date that the discontinuance takes effect. The foregoing does not negate the prohibition against Imperial's Parent and relevant Affiliates within its Tobacco Company Group entering the market for Tobacco Products in Canada with any other company or entity in place of the discontinued business, or any other provision in the CCAA Plan except for the obligation to provide shared services and other operational support. For greater certainty, except through Imperial and its Material Subsidiary, Imperial's Parent and the relevant Affiliates within its Tobacco Company Group shall not directly or indirectly, including by (i) exporting or supplying Tobacco Products to Canada, (ii) licensing technology, trademarks and intellectual property, or (iii) providing services, engage in any business activity or have any direct or indirect involvement or participation in the market for Tobacco Products in Canada. In the event that the CCAA Plan Administrators, the Provinces and Territories, the Impacted Claimants or other Tobacco Companies do not accept the position of Imperial and its Parent Page 81 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 74 regarding the Financial Viability of Imperial's Canadian operation, Imperial and its Parent may bring the issue before the CCAA Court for determination. 5.15 Payment of Intercompany Claims Any Intercompany Claim outstanding and due by Imperial as at the Effective Time may only be repaid by Imperial from its share of the Net After-Tax Income and amounts released from the Imperial Supplemental Trust Account, as applicable, that will remain with Imperial in each year after its Annual Contribution and any Reserved Amounts have been deposited into the Imperial Global Settlement Trust Account or Imperial Supplemental Trust Account, as applicable, the whole subject, however, to the terms of Article 5, Section 5.11 that govern the retention of its share of funds in the event that the amount of the Annual Contribution or Reserved Amount is in dispute. ARTICLE 6. ADMINISTRATION OF THE GLOBAL SETTLEMENT AMOUNT 6.1 Allocation of the Global Settlement Amount Set forth in Article 16, Sections 16.1, 16.2 and 16.3 herein are the terms that will govern the allocation of the Global Settlement Amount and the timing of the distributions thereof to the: (a) Quebec Class Action Plaintiffs; (b) Pan-Canadian Claimants; (c) Provinces and Territories; (d) Cy-près Foundation; (e) Tobacco Producers; and (f) Knight Class Action Plaintiffs. 6.2 Expert Evidence supporting Provincial HCCR Claims and Territorial HCCR Claims and Provincial and Territorial Allocation Expert evidence informing, in part, and supporting the quantification of the Provincial HCCR Claims and the Territorial HCCR Claims, and the allocation of the Provinces and Territories Settlement Amount among the Provinces and Territories, includes the Harrison Report that is attached to this Plan as Schedule "G". Dr. Harrison's curriculum vitae is attached to the CCAA Plan as Schedule "H". The Provinces and Territories Settlement Amount shall be apportioned among the Provinces and Territories in accordance with the percentages set out in the table in Article 16, Section 16.3. 6.3 Expert Evidence supporting the Pan-Canadian Claimants' Compensation Plan Expert evidence informing, in part, and supporting the development, formulation and quantification of the PCC Compensation Plan includes the Jha Report that is attached to this Plan as Schedule "I". Dr. Jha's curriculum vitae is attached to the CCAA Plan as Schedule "J". Page 82 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 75 6.4 Consideration for Settlement of Knight Class Action The consideration for the settlement of the Knight Class Action shall be the contribution to the Cy- près Fund and the payment of the Knight Class Counsel Fee. 6.5 Investment of Contributions and Reserved Amounts pending Disbursement The Contributions and Reserved Amounts paid into the Imperial Global Settlement Trust Account, Imperial PCC Trust Account, Imperial QCAP Trust Account, and Imperial Cy-près Trust Account, as well as the monies deposited into the Imperial Miscellaneous Claims Fund, Imperial CCAA Plan Administration Reserve Account and the Imperial PCC Compensation Plan Reserve Account, shall be invested in accordance with Investment Guidelines pending disbursement to the Claimants and any other applicable payees. Imperial shall adhere to the Investment Guidelines at all times when giving instructions to the Bare Trustee in respect of the Reserved Amounts held in the Imperial Supplemental Trust Account. Imperial shall not terminate any investment agreement with, or otherwise attempt to replace, any investment manager engaged to invest the amounts in the Imperial Supplemental Trust Account without the approval of the CCAA Court. ARTICLE 7. ESTABLISHMENT AND ADMINISTRATION OF QUEBEC CLASS ACTION ADMINISTRATION PLAN 7.1 Purpose of the Quebec Administration Plan The Quebec Administration Plan will provide direct compensation in the form of monetary payments to QCAPs who meet the criteria to qualify as Blais Class Members pursuant to the judgments in the Quebec Class Actions. The Quebec Administration Plan is attached to the CCAA Plan as Schedule "K". The Court-Appointed Mediator and the Monitors recommend that Epiq be approved by the CCAA Court for appointment as the Claims Administrator to manage the administration of the claims processes for both the Quebec Administration Plan and the PCC Compensation Plan. Attached to the CCAA Plan as Schedule "L" is an overview of Epiq's complex claims administration experience, an eleven page list of Epiq's legal administration projects, a description of Epiq's Tobacco Claims Pre-Settlement Support Program, and the resumes of the key professional management personnel who will be assigned to the administration of the Quebec Administration Plan and the PCC Compensation Plan. Upon the recommendation of the Court-Appointed Mediator and the Monitors, pursuant to the Sanction Order, the CCAA Court approved the appointment of Daniel Shapiro, K.C. as the Administrative Coordinator in respect of the administration of both the Quebec Administration Plan and the PCC Compensation Plan. Mr. Shapiro's curriculum vitae is attached to the CCAA Plan as Schedule "M". The following table summarizes the compensation available to Eligible Blais Class Members under the Quebec Administration Plan: Page 83 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 76 Quebec Class Action Administration Plan Column 1 Compensable Disease Compensation Payment (or such lesser amount as may be determined by the Claims Administrator to be available for the subclass of claimants; quantum will vary based upon the actual take-up rate and other factors and shall not exceed the maximum amounts specified in this table) Column 2 Compensation Payment for Eligible Blais Class Members who started to smoke before January 1, 1976 Column 3 Compensation Payment for Eligible Blais Class Members who started to smoke on or after January 1, 1976 (80% of Column 2) Lung Cancer $100,000 $80,000 Throat Cancer $100,000 $80,000 Emphysema/COPD (GOLD Grade III or IV) $30,000 $24,000 7.2 Quebec Administration Plan is subject to the Approval of the CCAA Court The CCAA Court shall hear and determine the proceedings relating to the approval of the Quebec Administration Plan, including the approval of the retainer agreement respecting fees and disbursements between the Quebec Class Counsel and the representative plaintiffs in the Quebec Class Actions, and the approval of the Quebec Class Counsel Fee. Matters relating to the ongoing supervision of the Quebec Administration Plan shall be heard and determined jointly by the CCAA Court and the Quebec Superior Court. In performing this function, the CCAA Court and the Quebec Superior Court may communicate with one another in accordance with a protocol to be worked out and established by them. After the Plan Implementation Date, no changes, modifications or revisions shall be made to the Quebec Administration Plan without the joint approval of the CCAA Court and the Quebec Superior Court. 7.3 Release of Cash Security Deposits Pursuant to the Cash Security Deposits Order, the Cash Security Deposits, which form part of the Upfront Contributions, shall be released from suretyship prior to the Plan Implementation Date and shall be deposited by the Minister of Finance of Quebec into the Imperial Global Settlement Trust Account and the RBH Global Settlement Trust Account, as applicable. Notwithstanding the foregoing, the Minister of Finance of Quebec may deposit the Cash Security Deposits into the Page 84 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;77 Imperial Global Settlement Trust Account and the RBH Global Settlement Trust Account, as applicable, in whole or in part as soon as practicable after the Plan Implementation Date. 7.4 QCAP Trust Accounts The QCAP Settlement Amount, less the QCAP Cy-près Contribution, shall be paid from the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account and deposited, respectively, into the Imperial QCAP Trust Account, RBH QCAP Trust Account and JTIM QCAP Trust Account for the benefit of the Blais Class Members. The proportionate shares of the QCAP Settlement Amount which the Trustees shall transfer from each of the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account into, respectively, the Imperial QCAP Trust Account, RBH QCAP Trust Account and JTIM QCAP Trust Account shall be equal to: (i) on the Plan Implementation Date, the proportionate shares of the Upfront Contributions made by Imperial, RBH and JTIM; and (ii) in respect of year 1 following the Plan Implementation Date and any subsequent years until the QCAP Settlement Amount has been paid in full, the proportionate shares of the Annual Contributions made by Imperial, RBH and JTIM in that year. From time to time, upon the submission of a requisition by the Claims Administrator, the CCAA Plan Administrators shall authorize the advancement of instalments of funds from the Imperial QCAP Trust Account, RBH QCAP Trust Account and JTIM QCAP Trust Account to the Claims Administrator's trust account designated for the Quebec Administration Plan, which shall be held in the Bank for the benefit of the Blais Class Members, to enable the Claims Administrator to make Compensation Payments to Eligible Blais Class Members. 7.5 Payment of QCAP Cy-près Contribution to Cy-près Trust Account The payment of the QCAP Cy-près Contribution in the amount of $131 million shall be the consideration for the full and final settlement and satisfaction of the Létourneau Judgment constituting the indirect benefit to the Létourneau Class Members. The QCAP Cy-près Contribution shall be paid from the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account and deposited, respectively, into the Imperial Cy-près Trust Account, RBH Cy-près Trust Account and JTIM Cy-près Trust Account for the benefit of the Cy-près Foundation. The proportionate shares of the Cy-près Fund which the Trustees shall transfer from each of the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account into, respectively, the Imperial Cy-près Trust Account, RBH Cy-près Trust Account and JTIM Cy-près Trust Account shall be equal to: (i) on the Plan Implementation Date, the proportionate shares of the Upfront Contributions made by Imperial, RBH and JTIM; and (ii) in respect of years 2, 3, 4 and 5 following the Plan Implementation Date and any subsequent years until the Cy-près Fund has been paid in full, the proportionate shares of the Annual Contributions made by Imperial, RBH and JTIM in each of those years. 7.6 No Solicitation of Blais Class Members No Persons other than the Quebec Class Counsel, their agent Raymond Chabot, the Claims Administrator, or any Person specifically authorized by any of the foregoing Persons or by the Page 85 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 78 CCAA Court, shall solicit Blais Class Members in order to assist them with the preparation or submission of their Proofs of Claim under the Quebec Administration Plan. ARTICLE 8. ESTABLISHMENT AND ADMINISTRATION OF PAN-CANADIAN CLAIMANTS' COMPENSATION PLAN 8.1 Purpose of the PCC Compensation Plan The Pan-Canadian Claimants' Compensation Plan ("PCC Compensation Plan") will provide direct compensation in the form of monetary payments to PCCs who fulfill all of the following criteria ("PCC Eligibility Criteria"): (a) On the date that a PCC submits their claim to the PCC Compensation Plan: (i) If the PCC is alive, they must reside in a Province or Territory in Canada, or (ii) If the PCC is deceased, they must have resided in a Province or Territory in Canada on the date of their death; (b) The PCC was alive on March 8, 2019; (c) Between January 1, 1950 and November 20, 1998, the PCC smoked a minimum of Twelve Pack-Years of cigarettes sold by the Tobacco Companies; (d) Between March 8, 2015 and March 8, 2019 ("PCC Claims Period"), the PCC was diagnosed with: (i) Primary lung cancer ("Lung Cancer"), (ii) Primary cancer (squamous cell carcinoma) of the Larynx, Oropharynx or Hypopharynx ("Throat Cancer"), or (iii) Chronic obstructive pulmonary disease (GOLD Grade III or IV only) (collectively, the "PCC Compensable Diseases"); and (e) On the date of the diagnosis with a PCC Compensable Disease the PCC resided in a Province or Territory in Canada. The following table summarizes the compensation which will be available under the PCC Compensation Plan: [Remainder of page intentionally left blank] Page 86 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 79 PCC Compensation Plan Column 1 PCC Compensable Disease Individual Payment (or such lesser amount as may be determined by the Claims Administrator to be available for the subclass of claimants; quantum will vary based upon the actual take-up rate and other factors and shall not exceed the maximum amounts specified in this table) Column 2 Compensation for PCCs who started to smoke before January 1, 1976 (60% of damages awarded to Quebec Class Action Plaintiffs) Column 3 Compensation for PCCs who started smoking on or after January 1, 1976 (80% of Column 2) Lung Cancer $60,000 $48,000 Throat Cancer $60,000 $48,000 Emphysema/COPD (GOLD Grade III or IV) $18,000 $14,400 The following documents are attached as Schedules to the CCAA Plan: (a) The document entitled "Pan-Canadian Claimants' Compensation Plan: Methodology and Analysis" dated December 5, 2024 is attached to the CCAA Plan as Schedule "N"; (b) The Jha Report is attached to the CCAA Plan as Schedule "I"; and (c) The Analysis of Limitations Law applicable to Pan-Canadian Claimants dated September 2, 2020 is attached to the CCAA Plan as Schedule "O". 8.2 PCC Compensation Plan The CCAA Court shall hear and determine the proceedings relating to the approval of the PCC Compensation Plan. The PCC Compensation Plan is attached to the CCAA Plan as Schedule "P". Upon the recommendation of the Court-Appointed Mediator and the Monitors, pursuant to the Sanction Order, the CCAA Court approved the appointment of Epiq as the Claims Administrator to manage the administration of the claims processes for both the Quebec Administration Plan and the PCC Compensation Plan. The duties and responsibilities of the Claims Administrator in connection with such appointment, as well as the duties and responsibilities of Epiq in its role as PCC Agent, are set out in the Claims Administrator Order, PCC Compensation Plan and Quebec Administration Plan. Page 87 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 80 Matters relating to the ongoing supervision of the PCC Compensation Plan shall be heard and determined solely by the CCAA Court. 8.3 PCC Trust Accounts The PCC Compensation Plan Amount shall be paid from the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account and deposited, respectively, into the Imperial PCC Trust Account, RBH PCC Trust Account and JTIM PCC Trust Account for the benefit of the Pan-Canadian Claimants. The proportionate shares of the PCC Compensation Plan Amount which the Trustees shall transfer from each of the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account into, respectively, the Imperial PCC Trust Account, RBH PCC Trust Account and JTIM PCC Trust Account shall be equal to: (i) on the Plan Implementation Date, the proportionate shares of the Upfront Contributions made by Imperial, RBH and JTIM; and (ii) in respect of years 1 and 2 following the Plan Implementation Date and any subsequent years until the PCC Compensation Plan Amount has been paid in full, the proportionate shares of the Annual Contributions made by Imperial, RBH and JTIM in each of those years. From time to time, upon the submission of a requisition by the Claims Administrator, the CCAA Plan Administrators shall authorize the advancement of instalments of funds from the Imperial PCC Trust Account, RBH PCC Trust Account and JTIM PCC Trust Account to the Claims Administrator's trust account designated for the PCC Compensation Plan, which shall be held in the Bank for the benefit of the Pan-Canadian Claimants, to enable the Claims Administrator to make Individual Payments to Eligible Pan-Canadian Claimants. 8.4 No Solicitation of Pan-Canadian Claimants No Persons other than the PCC Representative Counsel, the PCC Agent, the Claims Administrator, or any Person specifically authorized by any of the foregoing Persons or by the CCAA Court, shall solicit Pan-Canadian Claimants in order to assist them with the preparation or submission of their PCC Claim Packages under the PCC Compensation Plan. ARTICLE 9. ESTABLISHMENT AND ADMINISTRATION OF THE CY-PRÈS FOUNDATION 9.1 Purpose of the Cy-près Foundation The Cy-près Fund will be administered by a public charitable foundation ("Cy-près Foundation") to be established as part of the implementation of the CCAA Plan. The Cy-près Foundation shall be independent and free from any influence or interference by any of the Claimants, Tobacco Companies, Tobacco Company Groups, or any potential or actual beneficiary of the Cy-près Foundation. Although it is recognized that the governance of the Cy-près Foundation will be independent and free from any influence or interference, the Cy-près Foundation shall remain under the jurisdiction of the CCAA Court. The Cy-près Fund will provide consideration for the full and final settlement and release of all claims and potential claims of PCCs who are not receiving direct compensation payments from the PCC Compensation Plan, and Létourneau Class Members who are not receiving direct Page 88 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;81 compensation payments from the Quebec Administration Plan, but will be indirectly benefited by falling within the scope of the Cy-près Foundation. This broad group of claimants includes the following Persons and any affected family members or estates: (a) Smokers suffering from Lung Cancer or Throat Cancer or Emphysema/COPD (GOLD Grade III or IV) who are outside the claims period or who smoked less than the requisite Twelve Pack-Years or, in the case of Emphysema/COPD, were not classified as GOLD Grade III or IV or the equivalent; (b) Smokers who have tobacco-related harms other than Lung Cancer or Throat Cancer and Emphysema/COPD (GOLD Grade III or IV) or the equivalent; and (c) Persons who smoke or have smoked Tobacco Products who have not yet or may never develop a tobacco-related harm. The guiding principle is that the Cy-près Foundation must maintain a rational connection between the varying circumstances of the diverse group of PCCs and Létourneau Class Members covered by the Cy-près Fund and the Cy-près Foundation's purpose which is to fund research, programs and initiatives focused on improving outcomes in tobacco-related diseases that will provide indirect benefits to such Persons. This guiding principle will apply throughout the duration of the Cy-près Foundation's existence to the work product generated by the research and the programs and initiatives funded by the Cy-près Foundation. The payment of the QCAP Cy-près Contribution in the amount of $131 million shall be the consideration for the full and final settlement and satisfaction of the Létourneau Judgment. Upon the recommendation of the PCC Representative Counsel, the Court-Appointed Mediator and the Monitors and subject to the approval of the CCAA Court, Dr. Robert Bell, MDCM, MSc, FRCSC, FACS, FRCSE (Hon), may be appointed by the CCAA Court to serve as the initial Chair of the Cy-près Foundation. Dr. Bell's resume and curriculum vitae are attached to the CCAA Plan as Schedule "Q" and Schedule "R" respectively. Should Dr. Bell decline to have his name put forward such other designate as the PCC Representative Counsel, the Court-Appointed Mediator and the Monitors may see fit to recommend will be advanced for consideration by the CCAA Court. The document entitled "Cy-près Fund: Methodology and Analysis" is attached to the CCAA Plan as Schedule "S". 9.2 Funding the Cy-près Foundation The Cy-près Fund shall be paid in the aggregate amount set out in Article 16 from the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account and deposited, respectively, into the Imperial Cy-près Trust Account, RBH Cy-près Trust Account and JTIM Cy-près Trust Account for the benefit of the Cy-près Foundation. The proportionate shares of the Cy-près Fund which the Trustees shall transfer from each of the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account into, respectively, the Imperial Cy-près Trust Account, RBH Cy-près Trust Account and JTIM Cy-près Trust Account shall be equal to: (i) on the Plan Page 89 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 82 Implementation Date, the proportionate shares of the Upfront Contributions made by Imperial, RBH and JTIM; and (ii) in respect of years 2, 3, 4 and 5 following the Plan Implementation Date and any subsequent years until the Cy-près Fund has been paid in full, the proportionate shares of the Annual Contributions made by Imperial, RBH and JTIM in each of those years. The Cy-près Fund shall not be transferred to the Cy-près Foundation until such time as all aspects of the establishment of the Cy-près Foundation as set out in Section 9.4 herein have been given final approval by the CCAA Court, and the Imperial Cy-près Trust Account, RBH Cy-près Trust Account and JTIM Cy-près Trust Account have been duly established in the Bank. Following such time, the Cy-près Fund, including all amounts held in the Imperial Cy-près Trust Account, RBH Cy-près Trust Account and JTIM Cy-près Trust Account will be transferred to, and held by, the Cy-près Foundation. Following the transfer of such amounts to the Cy-près Foundation, any further payments to the Cy-près Foundation to be made by Imperial, RBH and JTIM shall be paid, respectively, from the Imperial Global Settlement Trust Account, the RBH Global Settlement Trust Account and the JTIM Global Settlement Trust Account and deposited to the Cy-près Foundation. The proportionate shares of the Cy-près Fund which the Trustees shall transfer from each of the Imperial Global Settlement Trust Account, the RBH Global Settlement Trust Account and the JTIM Global Settlement Trust Account to the Cy-près Foundation shall be the proportionate shares of the Annual Contributions made by Imperial, RBH and JTIM in each of those years. 9.3 Cy-près Foundation Terms of Reference The Terms of Reference of the Cy-près Foundation are set out below: "The Foundation for Improved Outcomes in Tobacco-Related Disease" (FIORD) Terms of Reference Introduction: This document describes the terms of reference for the Cy-près Foundation. Foundation Name: The name of the Cy-près Foundation must relate clearly to the purpose of the Cy-près. The name "The Foundation for Improved Outcomes in Tobacco-Related Disease" will serve as the corporate name along with the acronym "FIORD". This name will be used on the Cy-près Foundation's website and other presentation materials. Purpose of the Cy-près Foundation: The Cy-près Foundation's purpose is to fund research, programs and initiatives focused on improving outcomes in tobacco-related diseases. The Cy-près Foundation will indirectly benefit users of Tobacco Products and their affected family members or estates who are not directly compensated through the Quebec Administration Plan or PCC Compensation Plan. The smokers who are directly compensated (through the Quebec Administration Plan and PCC Compensation Plan) include individuals suffering from Lung Cancer, Throat Cancer or Emphysema/COPD (GOLD Grade III or IV) as defined in those plans. The Cy-près Foundation will not make any monetary payments to individuals making claims for tobacco-related harms. Those individuals who are to receive monetary compensation will do so through either the Quebec Administration Plan or PCC Compensation Plan in accordance with the provisions of those plans. Page 90 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 83 The tobacco users who are not directly compensated but will be indirectly benefited by falling within the scope of the Cy-près include the following Persons and any affected family members or estates: i) Smokers suffering from Lung Cancer, Throat Cancer or Emphysema/COPD (GOLD Grade III or IV) who are outside the claims period or who smoked less than the requisite Twelve Pack-Years or, in the case of Emphysema/COPD, were not classified as GOLD Grade III or IV or the equivalent. ii) Smokers who have tobacco-related harms other than Lung Cancer, Throat Cancer and Emphysema/COPD (GOLD Grade III or IV) or the equivalent. iii) Persons who smoke or have smoked Tobacco Products and have not yet or may never develop a tobacco-related harm. Vision for the Cy-près Foundation: Canadians will experience improved diagnosis, treatment and outcomes for tobacco-related cancers, Emphysema/COPD and other tobacco-related harms. Mission of the Cy-près Foundation: The Cy-près Foundation will indirectly benefit current, past and future smokers and their families by funding research, programs and initiatives regarding tobacco-related cancers, Emphysema/COPD and other illnesses and conditions which are reasonably and rationally connected to tobacco-related harms. The research, programs and initiatives that are funded by the Cy-près Foundation will achieve earlier diagnosis, better treatment and improved outcomes for Persons suffering from these diseases. Values of the Cy-près Foundation: The Cy-près Foundation will focus on: the inherent value of the research, program or initiative from the standpoint of its indirect benefit to Persons covered by the Cy-près and Canadians at large; awareness of the need to maintain a "rational connection" between the work supported by the Cy-près Foundation and the individuals benefitting from the Cy-près; devotion to principles of best evidence and expert peer review; emphasis on collaboration to increase the impact of research funding while limiting Cy-près Foundation overhead costs to maximize the indirect benefit to individuals who fall within the scope of the Cy-près; and, insistence that Cy-près Foundation funded research, programs and initiatives reflect the principles of health equity and opportunity for inclusion of First Nations, Metis and Inuit people. What Will Be Eligible for Consideration for Support by the Cy-près Foundation: Proposals regarding research, programs and initiatives falling within the scope of the Cy-près will be received by the board of directors of the Cy-près Foundation ("Foundation Board") for consideration for financial or other support from the Cy-près Foundation. Programs and initiatives aimed at reducing or preventing tobacco use in Canada are outside of the scope of the Cy-près because they fall within the purview of the Provinces and Territories, involving policy issues and advocacy. Accordingly, such programs and initiatives will not be considered for funding or other support from the Cy-près Foundation. The fact that a proposal requesting funding for research or a program or initiative is received by the Cy-près Foundation for consideration does not mean that it will necessarily be awarded a grant of funding or other support. The decision regarding whether to provide funding for a proposal is Page 91 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 84 within the sole discretion of the Cy-près Foundation and is not reviewable once it has received approval by the CCAA Court. Early works: • Establish "The Foundation for Improved Outcomes in Tobacco-related Disease" as a tax-exempt charitable public foundation. • Recruit a neutral and independent board that will provide oversight of the Cy-près Foundation's strategy for funding research, programs and initiatives supported by the Cy- près Foundation. The Foundation Board will also develop and oversee the financial and investment strategy for the Cy-près Foundation. • Undertake a process of consultation with interested parties and members of the public across Canada led by the Chair of the Cy-près Foundation to better understand their concerns and gather suggestions for improving the present structure for diagnosis, treatment and palliation of Persons suffering from tobacco-related cancers, Emphysema/COPD and other tobacco-related harms. • Develop a strategic plan for the implementation of the intended activities of the Cy-près Foundation. Potential Areas of Cy-près Foundation Financial Support: • Improving methods for screening and diagnosis of tobacco-related cancers. • Establishing best practices for diagnosis and treatment of tobacco-related cancers, Emphysema/COPD and other tobacco-related harms and increasing the likelihood that Canadians can achieve access to best practice care of these diseases. • Researching the treatment of nicotine addiction and dependence, and tobacco use in Canada. • Researching the effective treatment and palliation of tobacco-related diseases. • Services and supportive health care to reduce the burden on and enhance the health and quality of life of Canadians living with tobacco-related diseases and their families. Benefit to all Canadians: • In addition to benefiting Canadians who have smoked, research funded by the Cy-près Foundation has the potential to determine whether screening of higher risk populations and potentially all Canadians can identify cancers at earlier stages of oncogenesis when treatment is less morbid and potential cure is more likely. • Expanded learnings from Cy-près Foundation supported research into tobacco-related cancers, Emphysema/COPD and tobacco-related diseases, as well as areas yet to be identified, will provide a collateral benefit to members of the broader Canadian public. In Page 92 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;85 fulfilling the Cy-près Foundation's mandate, it is anticipated that the broader Canadian population will benefit from the knowledge generated by this work. 9.4 CCAA Court Approval of Establishment of Cy-près Foundation (in the period after the Sanction Hearing and prior to Final Approval of the Cy-près Foundation) The establishment of the Cy-près Foundation will take place in two phases as set forth herein: the first occurring at the Sanction Hearing, and the second occurring at the hearing for the final approval by the CCAA Court of the Cy-près Foundation, so as to permit the finalization of the administrative aspects of the Cy-près Foundation. The establishment of the Cy-près Foundation will be subject to the final approval of the CCAA Court after the Cy-près Foundation has been created and the essential requirements have been fulfilled including: (a) Drafting the goals, objects and purpose of the Cy-près Foundation; (b) Preparing the governing documents which will establish the legal entity that will constitute the Cy-près Foundation in accordance with CRA rules for registered charities; (c) Establishing the legal entity of the Cy-près Foundation; (d) Drafting the governance structure for the Cy-près Foundation, including matters relating to quorum, voting, frequency of the meetings of the Foundation Board, and other organizational and governance matters including whether and, if so, to what extent the capital can be encroached upon; (e) Pursuant to Article 9, Section 9.5, appointing the requisite Persons who will be responsible for the management and operation of the Cy-près Foundation which, for the sake of ease of reference, shall be referred to herein as the directors, including the Chair, of the Cy-près Foundation, who together shall constitute the Foundation Board; (f) Applying for and acquiring from the CRA status for the Cy-près Foundation as a registered charity; (g) Setting up the requisite management controls and system of books and records; and (h) Establishing the Imperial Cy-près Trust Account, RBH Cy-près Trust Account and JTIM Cy-près Trust Account in the Bank. Once the Sanction Order has been granted, the Cy-près Foundation shall be compliant with all legal, technical and other requirements to enable the establishment of the Cy-près Fund and the registration and operation of the Cy-près Foundation as a charitable public foundation. It is understood that, after the CCAA Court has rendered the Sanction Order approving the CCAA Plan, the CCAA Plan Administrators may, on an interim basis and consistent with the Terms of Reference of the Cy-près Foundation, proceed to engage in the work of establishing the Cy-près Page 93 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 86 Foundation, including attending to the completion of the essential requirements set out in subparagraphs (a) to (h) above. The CCAA Plan Administrators will seek an Interim Maintenance Order pertaining to the operation and financial support of the putative Cy-près Foundation pending fulfillment of the above requirements and approval by the CCAA Court. The CCAA Plan Administrators will be required to seek final approval by the CCAA Court of the Cy-près Foundation once the requisite steps to establish the Cy-près Foundation have been completed. The CCAA Plan Administrators shall supply reports to the CCAA Court affirming the foregoing. 9.5 Appointment of Board of Directors and Chair of Cy-près Foundation (in the period after the Sanction Hearing and prior to Final Approval of the Cy-près Foundation) The Foundation Board shall be comprised of ten neutral and independent directors, including the Chair of the Cy-près Foundation. The directors shall be independent of any proposal submitted to the Cy-près Foundation. In order to provide meaningful representation of the PCCs, the PCC Representative Counsel, in consultation with the Court-Appointed Mediator and the CCAA Plan Administrators, shall nominate five directors (and fill any requisite vacancies thereof) to serve on the Foundation Board. The Chair of the Cy-près Foundation, in consultation with the Court- Appointed Mediator and the CCAA Plan Administrators, shall nominate four directors to serve on the Foundation Board. The appointment of the ten directors, including the Chair, to the Foundation Board shall be ratified by the CCAA Plan Administrators and be subject to the approval of the CCAA Court. Foundation Board members shall serve a term of two years as to be further described in the bylaws of the Cy-près Foundation. 9.6 Process for soliciting and selecting proposals for funding by the Cy-près Foundation The Foundation Board shall establish a secretariat and direct its activities to facilitate the effective and efficient governance, administration and operation of the Cy-près Foundation which will include the solicitation, receipt, review and evaluation of the merits of proposals submitted by individuals and organizations seeking distributions from the Cy-près Fund. The Foundation Board shall establish the criteria, reflective of the mission of the Cy-près Foundation, for applicants to qualify to receive distributions from the Cy-près Fund. The Foundation Board shall publish requests for proposals soliciting the submission of proposals from interested individuals and organizations seeking financing and support for research, programs and initiatives which fall within the scope of the mission of the Cy-près Foundation. The requests for proposals will specify that a proposal should include, among other things: (a) Background information regarding the organization or institution seeking funding, including its history, mission statement, research mandate, strategic plan, goals and objectives; (b) The curriculum vitae of the researcher or project manager as applicable to the research, program or initiative to establish that they have the appropriate qualifications and expertise to undertake the research, program or initiative; Page 94 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 87 (c) A declaration by the applicant that there is no real or perceived conflict of interest between the applicant's interest in the research, program or initiative and the applicant's private, professional, business and/or public interests; (d) A statement of how the research, program or initiative is aligned with the mission of the Cy-près Foundation; (e) A scientific abstract or other description of the research, program or initiative, including methodology and analysis and the expected product or result of the work of the research, program or initiative, together with the expected indirect benefit of the work to the individuals falling within the scope of the Cy-près and Canadians at large; (f) The term (in months/years) for which funding is sought and the proposed start date and end date of the research, program or initiative; (g) The amount of funding requested; (h) The budget for the expenditure of the funding; and (i) Disclosure of the financial accountability policies, administrative systems, procedures and controls in place to ensure the funds distributed from the Cy-près Fund are used appropriately in accordance with the highest ethical and financial standards. Once proposals are received by the secretariat, the Foundation Board will submit the proposals which it clears to go forward as having met the preliminary requirements to an independent organization for peer review to enable the Foundation Board to determine whether each proposal is sufficiently meritorious to be further advanced in the process for approval. Once cleared through the peer review process, the Foundation Board will ascertain which proposals it wishes to advance, the priority, timing, amounts to be allocated to each successful proposal, and duration or term of a successful proposal to completion, as well as any other pertinent questions. This will include oversight and reporting requirements as well as other conditions attached to a successful grant of funds. The Cy-près Foundation has no duty to grant, nor shall there be any expectation to receive, any financial or other support for any research, program or initiative which is sought from the Cy- près Foundation. Once a proposal is accepted by the Foundation Board, it will be submitted together with supporting materials to the CCAA Plan Administrators for review. The Foundation Board will also provide a copy of the proposal together with supporting materials to the PCC Representative Counsel. If accepted by the CCAA Plan Administrators, the proposal will be submitted with or without a recommendation by the CCAA Plan Administrators to the CCAA Court for approval. Until such time as the final CCAA Court approval is finalized, a proposal shall not be deemed to have been approved. The grants submitted by the Foundation Board through the CCAA Plan Administrators for approval by the CCAA Court will be conducted annually. The list of grants shall be prioritized, supported by a strategic plan, a budget and the peer reviews. Page 95 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 88 The CCAA Plan Administrators shall be empowered to retain the services of such experts as they deem necessary to advise them in regard to the foregoing and in respect of any and all endeavours in connection with the establishment and operation of the Cy-près Foundation. 9.7 Reporting by approved recipients of distributions from the Cy-près Fund The approved recipients of distributions from the Cy-près Fund will be required to, among other things: (a) Periodically submit financial reports to the Cy-près Foundation regarding the receipts and expenditures on the research, program or initiative; (b) Periodically submit written progress reports to the Cy-près Foundation providing details of the progress on the research, program or initiative and future work plans; (c) Submit a written final report to the Cy-près Foundation; and (d) At the end of the term of the research, program or initiative, will return any unexpended funds to the Cy-près Foundation. 9.8 Reporting by Cy-près Foundation to CCAA Plan Administrators and CCAA Court Not less frequently than annually, the Chair of the Cy-près Foundation shall prepare a written report for submission to the CCAA Plan Administrators and thereafter for filing with the CCAA Court that includes reports on the financial status of the Cy-près Foundation (including capital, interest earned, distributions made, etc.) and the activities of the Cy-près Foundation for the period covered by the report. A copy of this report shall be provided to PCC Representative Counsel. 9.9 Role of the CCAA Plan Administrators and the CCAA Court The CCAA Court is responsible for the ultimate supervision of the Cy-près Foundation pursuant to the terms of the CCAA Plan. The CCAA Plan Administrators are designated in the CCAA Plan to be the overseers of the Cy- près Foundation and will function as the intermediaries relative to the supervisory role of the CCAA Court. In this capacity, the CCAA Plan Administrators will gather the data and information concerning the Cy-près Foundation that will be of significance to the CCAA Court when it approves various functions of the Cy-près Foundation as it will be required to do from time to time. The CCAA Plan Administrators will report to the CCAA Court regarding the activities of the Cy- près Foundation annually, or more frequently as they deem necessary. Accordingly, the Chair of the Foundation Board shall communicate with the CCAA Plan Administrators when the Cy-près Foundation's reports are put forward for approval by the CCAA Court. Similarly, this process will be adhered to when the Cy-près Foundation seeks the approval of the CCAA Court in advance of proceeding with matters, other than purely administrative matters, which entail financial expenditures or commitments. All reports provided by the Chair of the Foundation Board to the CCAA Plan Administrators and all reports provided by the CCAA Plan Administrators to the Page 96 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;89 CCAA Court in relation to the Cy-près Foundation shall be provided to the PCC Representative Counsel. 9.10 Term of Operation of Cy-près Foundation The Cy-près Foundation shall not be dissolved, nor shall its work be terminated until such time as specified by the CCAA Court in the Sanction Order or such further Order of the CCAA Court. ARTICLE 10. INFORMATION TO BE PROVIDED DURING THE CONTRIBUTION PERIOD 10.1 Annual Business Plans Notwithstanding any terms or conditions of any Definitive Documents, Imperial and any members of its Tobacco Company Group, as applicable, shall comply with all their obligations pursuant to Article 10 herein. On an annual basis during the Contribution Period, Imperial shall provide to the CCAA Plan Administrator a rolling five-year operating and capital business plan approved by Imperial's Canada leadership team (the "Business Plan") that shall be consistent with the Definitive Documents and, without limitation, shall include the following: (a) The same schedules and level of detail as Imperial has provided to the Claimants during the pendency of the CCAA Proceedings including, for greater certainty, five-year projections for Imperial's income statement, balance sheet, cash flow statement, gross margin schedule, total margin schedule, Intercompany Transaction details, taxes and government levies schedule, operating costs schedule, statement of financial position, and summary of assumptions and trends, and, until such time as Imperial shall have transferred all of its assets, Indebtedness, liabilities and business relating to its current and future Alternative Products to an unrelated company, a Canadian Affiliate of its Parent, or a Canadian Subsidiary of any other company within its Tobacco Company Group pursuant to Article 4, Section 4.1 herein, the particulars of the determination of the net income attributable to the Alternative Products; (b) Imperial's plans to make capital expenditures ("CapEx") that: (i) Are reasonably necessary for the preservation of its assets, undertakings and properties or its business (including payments on account of insurance, maintenance and security services), (ii) Are reasonably necessary to replace or supplement its assets, undertakings or properties, or (iii) Are otherwise of benefit to the business; and (c) The framework, elements and pricing of the intercompany charges for the Intercompany Services which the Parent and relevant Affiliates of Imperial shall continue to provide to Imperial through Intercompany Transactions, subject to the provisions of the CCAA Plan and in accordance with the Definitive Documents. Page 97 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 90 The CCAA Plan Administrator shall review the Business Plan for Imperial on an annual basis, and may suggest non-binding revisions or amendments to Imperial. The CCAA Plan Administrator may advise the Provinces, Territories and any Impacted Claimants of such suggestions. The suggestions of the CCAA Plan Administrator shall be considered in good faith by Imperial. 10.2 Quarterly and Annual Information 10.2.1 Annual Financial Information On or before the 90th day following the end of each fiscal year during the Contribution Period, Imperial shall provide the CCAA Plan Administrator with the following financial information: (a) An audited financial statement ("Annual Financial Statement"); (b) A schedule providing the particulars by Affiliate of all receipts and disbursements in respect of all of Imperial's Intercompany Transactions; (c) A report that identifies and discusses the differences between Imperial's financial performance forecast in its Business Plan and its actual financial performance in each fiscal year during the Contribution Period; and (d) All other relevant assumptions, details and schedules that support the Annual Financial Statement. 10.2.2 Information to be provided by Imperial in Annual MD&A The Business Plan which Imperial shall provide annually during the Contribution Period to the CCAA Plan Administrator shall be accompanied by a management discussion and analysis ("MD&A") which includes disclosure of information regarding the following matters that is of a similar level of disclosure as in the CCAA Proceedings to enable the CCAA Plan Administrator and the Claimants to understand and assess the impact on and associated risk to Imperial's performance of its obligations under the Definitive Documents: (a) Transfer Pricing Arrangements - Any plan to change any of Imperial's existing intercompany transfer pricing arrangements; (b) Intercompany Transaction Changes - Any plan to enter into a new Intercompany Transaction or amend the terms of an existing Intercompany Transaction which may only be undertaken in compliance with the requirements set out in Article 5, Section 5.14 herein; (c) Intercompany Transaction Terminations - Any plan to not renew, not extend or otherwise terminate an Intercompany Transaction; (d) Change in Location - Any plan to move Imperial's head office or other premises and/or terminate any lease of the premises housing such offices; (e) Disposition of Assets - Any plan to dispose of and/or transfer material assets exceeding $5 million in any one transaction or $10 million in the aggregate, including manufacturing Page 98 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 91 equipment, trademarks, intellectual property and any other intangible assets, that are material to Imperial's conduct of its Ordinary Course of Business; (f) Termination of Employees - Any plan to terminate an operationally significant number of employees of Imperial; (g) Change in Executive Management Team - Any planned or anticipated changes to Imperial's executive management team in regard to both complement and personnel; (h) CapEx - Imperial's CapEx budget, including any plans to make material capital expenditures and dispose of and/or transfer assets; (i) Cash Security Arrangements - Any planned new cash security arrangements or other treasury arrangements, or planned amendments to cash security arrangements or treasury arrangements including: the use of concentration accounts, cash sweeps, increased or new escrow, and deposit or pledged asset requirements; (j) Cash Commitments - Any planned new or amended cash commitments or deposits required that are in excess of $10 million in the aggregate, whether occurring in any one situation, or series of related situations, or series of related transactions; (k) Financing Arrangements - Any planned new or amended financing arrangements into which Imperial proposes to enter, that are in excess of $10 million in the aggregate, whether occurring in any one situation, or series of related situations, or series of related transactions, including full particulars regarding the anticipated security and financing costs; (l) Material Change in Business Operations - Any plans to permanently or temporarily cease, downsize or shutdown any businesses or operations carried on by Imperial, or make any other material changes in Imperial's business or operations (other than in respect of Alternative Products); (m) Taxes – All notices of assessment or reassessment in respect of any taxation year ending during the Contribution Period. Any rulings and any other written communications issued by a Tax Authority relating to the deductibility of the Upfront Contributions, Annual Contributions or Reserved Amounts for income tax purposes, the receipt of Reserved Amounts, or the availability, deductibility, carryforward or carryback of a Tax Attribute (any of which, a "Tax Matter"); (n) Claims and Litigation – All notices received by Imperial regarding claims or potential claims that may be brought against it, and copies of all originating processes commenced against Imperial; (o) Settlements – All amounts paid to settle claims made and actions commenced against Imperial and whether such payments were made in whole or in part by Imperial's insurer(s); and Page 99 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 92 (p) Penalties and Fines – All penalties and fines, and any interest charged thereon, levied against Imperial by a Governmental Authority. 10.2.3 Information to be provided by Imperial in Quarterly MD&A Quarterly during the Contribution Period, Imperial shall provide to the CCAA Plan Administrator: (a) Financial statements which include the same schedules and level of detail as Imperial has provided to the Claimants during the pendency of the CCAA Proceedings including, for greater certainty, income statement, balance sheet, statement of profit and loss, cash flow statement, statement of Tobacco Product shipment volumes by brand, gross margin schedule, total margin schedule, Intercompany Transaction details, Taxes and government levies schedule, operating costs schedule, statement of financial position, and summary of assumptions and trends, and the particulars of the determination of the net income attributable to the Alternative Products; and (b) An accompanying MD&A which includes disclosure of any new information or updates relating to the matters enumerated in Article 10, Section 10.2.2(a) through Article 10, Section 10.2.2(p) herein that is sufficiently detailed to enable the CCAA Plan Administrator and the Claimants to understand and assess the impact on and associated risk to Imperial's performance of its obligations under the Definitive Documents. 10.3 Other Information to be provided by Imperial During the Contribution Period, within ten days of receipt of any communication from a Tax Authority relating to a Tax Matter, Imperial shall provide copies of same to the CCAA Plan Administrators. During the Contribution Period, Imperial shall also provide sufficiently detailed information and supporting data to the CCAA Plan Administrator in response to ad hoc requests which may be made from time to time in connection with the information produced by Imperial pursuant to Article 10, Sections 10.1, 10.2.1, 10.2.2, 10.2.3 and 10.8 herein. Imperial shall provide the CCAA Plan Administrators with ongoing internet access to view the holdings comprising the Imperial Supplemental Trust Account and the related performance thereof. 10.4 Access to Imperial's Management During the Contribution Period, Imperial shall provide the CCAA Plan Administrators with reasonable access to its key management personnel to answer any reasonable questions they may have arising from or in connection with the financial records and information produced to the CCAA Plan Administrators pursuant to Article 10, Sections 10.1, 10.2.1, 10.2.2, 10.2.3, 10.3 and 10.8 herein. The key management personnel of Imperial shall attend quarterly meetings and any meetings scheduled ad hoc with the CCAA Plan Administrators. 10.5 Procedure for Provinces and Territories to request Information from Imperial If, in connection with the interpretation, implementation, application, compliance with, enforcement of, or alleged breach or violation of any terms of any of the Definitive Documents, a Province or Territory wishes to make a request for financial records or other data and information ("Information Request") to Imperial, the following procedure shall be followed: Page 100 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;93 (a) An Information Request from any public servant of, or financial, legal or other advisor to, a Province or Territory shall be delivered to the PTLC Member for the requesting Province or Territory. The Information Request shall be in writing and sufficiently particularized; (b) The PTLC Member for the requesting Province or Territory shall submit the written Information Request to the PTLC Chair; (c) The PTLC Chair shall review each Information Request received and, if necessary, confer with the requesting PTLC Member to clarify the particulars of the information sought, remove any duplication with other Information Requests received from other PTLC Members, and then prepare a final written Information Request ("Final Information Request"). Notwithstanding the foregoing responsibility, the PTLC Chair may, in their discretion, decline to send to the CCAA Plan Administrator an Information Request which, in the reasonable view of the PTLC Chair, is unreasonable, unnecessary, overly broad or imprecise. If the PTLC Chair declines to send an Information Request to the CCAA Plan Administrator, the PTLC Chair shall advise the requesting PTLC Member in writing of the reason for such decision; (d) If the Information Request has not been declined, the PTLC Chair shall submit the Final Information Request to the CCAA Plan Administrator, and provide all PTLC Members and any Impacted Claimants with a copy of the Final Information Request; (e) The CCAA Plan Administrator shall review and then may submit the Final Information Request to Imperial. Notwithstanding the foregoing responsibility, the CCAA Plan Administrator may, in its discretion, suggest revisions, add comments or decline to send to Imperial a Final Information Request which, in the reasonable view of the CCAA Plan Administrator, is unreasonable, unnecessary, overly broad or imprecise. If the CCAA Plan Administrator declines to send a Final Information Request to Imperial, the CCAA Plan Administrator shall advise the PTLC Chair in writing of the reason for such decision. In that event: (i) The PTLC Chair may reconsider whether to revise or withdraw the Final Information Request; or (ii) The PTLC Chair may require the CCAA Plan Administrator to provide Imperial with a copy of the Final Information Request, in which case the written reasons for the CCAA Plan Administrator's view that the Final Information Request is improper or irrelevant shall also be submitted to Imperial. All Final Information Requests that are submitted to Imperial and any written comments or written reasons of the CCAA Plan Administrator shall be admissible in evidence in any arbitration or proceeding in the CCAA Court; (f) Imperial shall provide to the CCAA Plan Administrator data, information and any documents responsive to the Final Information Request which the CCAA Plan Administrators shall use to prepare a written response to the Final Information Request. The CCAA Plan Administrator shall deposit the written response and any documents Page 101 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 94 received from Imperial in the Virtual Data Room for Imperial, and then notify the PTLC Chair and any Impacted Claimants of such deposit; (g) The PTLC Chair shall notify the PTLC Members that the written response and any documents responsive to the Final Information Request have been deposited into Imperial's Virtual Data Room; and (h) The PTLC Chair, any Impacted Claimants or the CCAA Plan Administrator may request an ad hoc Interface Meeting to discuss Imperial's response to the Final Information Request. Under no circumstances shall a PTLC Member, other public servant of, or a financial, legal or other advisor to, any Province or Territory contact Imperial or a member of Imperial's Tobacco Company Group directly to make an Information Request and thereby bypass the PTLC Chair or the CCAA Plan Administrator. 10.6 Procedure for Impacted Claimants to request Information from Imperial If an Impacted Claimant wishes to make an Information Request to Imperial, the following procedure shall be followed: (a) An Information Request from an Impacted Claimant, or its financial, legal or other advisor, shall be in writing, sufficiently particularized and not duplicate any Final Information Requests from the Provinces and Territories which have been provided to the Impacted Claimant by the PTLC Chair; (b) The Impacted Claimant shall submit its Information Request to the CCAA Plan Administrator with a copy to the PTLC Chair; (c) The PTLC Chair shall provide a copy of the Impacted Claimant's Information Request to all PTLC Members; (d) The CCAA Plan Administrator shall review and then may submit the Impacted Claimant's Information Request to Imperial. Notwithstanding the foregoing responsibility, the CCAA Plan Administrator may, in its discretion, suggest revisions, add comments or decline to send to Imperial an Information Request which, in the reasonable view of the CCAA Plan Administrator, is unreasonable, unnecessary, overly broad or imprecise. If the CCAA Plan Administrator declines to send an Information Request to Imperial, the CCAA Plan Administrator shall advise the Impacted Claimant of the reason for such decision. In that event: (i) The Impacted Claimant may reconsider whether to revise or withdraw its Information Request; or (ii) The Impacted Claimant may require the CCAA Plan Administrator to provide Imperial with a copy of its Information Request, in which case the written reasons for the CCAA Plan Administrator's view that the Information Request is Page 102 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 95 unreasonable, unnecessary, overly broad or imprecise shall also be submitted to Imperial. All Information Requests of an Impacted Claimant that are submitted to Imperial and any written comments or written reasons of the CCAA Plan Administrator shall be admissible in evidence in any arbitration or proceeding in the CCAA Court; (e) Imperial shall provide to the CCAA Plan Administrator data, information and any documents responsive to the Impacted Claimant's Information Request which the CCAA Plan Administrator shall use to prepare a written response to the Information Request. The CCAA Plan Administrator shall deposit the written response and any documents received from Imperial in the Virtual Data Room for Imperial, and then notify the Impacted Claimant and the PTLC Chair of such deposit; (f) The PTLC Chair shall notify the PTLC Members that the written response and any documents responsive to the Impacted Claimant's Information Request have been deposited into Imperial's Virtual Data Room; and (g) The Impacted Claimant, PTLC Chair or CCAA Plan Administrator may request an ad hoc Interface Meeting to discuss Imperial's response to the Impacted Claimant's Information Request. Under no circumstances shall an Impacted Claimant, or any of its financial, legal or other advisors, contact Imperial or any member of Imperial's Tobacco Company Group directly to make an Information Request and thereby bypass the CCAA Plan Administrator. 10.7 Confidentiality of Information In addition to their obligations pursuant to the NDAs and any confidentiality order, the PTLC Members and the Impacted Claimants shall maintain the strict confidentiality of all communications made, all information shared and all agendas, reports, records and other documents exchanged during the Interface Meetings and the Deliberation Meetings and in response to Information Requests, which shall not be disclosed in or used for any proceeding or any other purposes, other than as provided for in Article 10, Sections 10.5(e) and 10.6(d). 10.8 Information and Certification to be provided by Imperial regarding Annual Contributions and Reserved Amounts During the Contribution Period, Imperial shall provide to the CCAA Plan Administrator sufficiently detailed information and supporting data regarding the quantum of the Annual Contributions and Reserved Amounts to be made by Imperial in respect of each calendar year, including a certification provided by Imperial's chief financial officer that the quantum of the Annual Contributions and Reserved Amounts to be made by Imperial in respect of each calendar year has been calculated accurately in accordance with the Metric and all other applicable terms of the Definitive Documents. Such certification shall be delivered to the CCAA Plan Administrator at the same time as the aforesaid information and supporting data and shall not give rise to any personal liability on the part of the certifying officer. Page 103 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 96 10.9 Timing of Imperial's Delivery of Business Plan, Financial Statements and MD&A to CCAA Plan Administrators By no later than the applicable dates specified in the Table below, Imperial shall deliver to the CCAA Plan Administrator the Business Plans and financial records and information that it is required to produce pursuant to Article 10, Sections 10.1, 10.2.1, 10.2.2, 10.2.3, 10.3 and 10.8 herein: Financial Documents Dates by which Imperial shall deliver Financial Documents to CCAA Plan Administrator Q1 Financial Statements May 15 Q2 Financial Statements August 15 Q3 Financial Statements November 15 Q4 Financial Statements March 15 Annual Financial Statements March 31 5 year Business Plan provided annually May 15 Calculation of Metric June 30 10.10 Virtual Data Rooms and NDAs As provided in Article 11, Section 11.1(b) herein, during the Contribution Period, Imperial shall provide to its CCAA Plan Administrator for deposit into its virtual data room ("Virtual Data Room") all of the financial records and information required to be produced to the CCAA Plan Administrator pursuant to Article 10, Sections 10.1, 10.2.1, 10.2.2, 10.2.3, 10.3 and 10.8 herein. Imperial's Virtual Data Room shall only be accessed by the CCAA Plan Administrators, Provinces, Territories and Impacted Claimants and their advisors who have executed an NDA with Imperial. Provided that they have executed an NDA, any Claimant to whom any portion of its share of the Global Settlement Amount remains unpaid shall be entitled to access all of the financial records and information that Imperial shall deposit in its Virtual Data Room pursuant to Article 10, Sections 10.1, 10.2.1, 10.2.2, 10.2.3, 10.3 and 10.8 and Article 11, Section 11.1(b) herein. Page 104 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;97 ARTICLE 11. COVENANTS AND OTHER PAYMENT ASSURANCE 11.1 Covenants During the Contribution Period, Imperial and, as applicable, members of its Tobacco Company Group shall be subject to the following covenants, subject to Imperial's right to engage in its Ordinary Course Operational Activities: (a) Imperial shall use commercially reasonable efforts to operate and carry on business in a manner consistent with its Business Plan, subject to any changes to such operations or business that are not inconsistent with the Definitive Documents, and as may be necessary or required in the Ordinary Course of Business of Imperial, or in response to prevailing material market changes affecting Imperial, that are not contemplated by its Business Plan; (b) In accordance with Article 10, Section 10.10 herein, Imperial shall continue on a regular and timely basis to provide to its CCAA Plan Administrator for deposit into its Virtual Data Room all financial records and information required to be produced to the CCAA Plan Administrators pursuant to Article 10, Sections 10.1, 10.2.1, 10.2.2, 10.2.3, 10.3 and 10.8 herein, and to which the CCAA Plan Administrators, Provinces, Territories and any Impacted Claimants shall be permitted continued access during the Contribution Period provided that they have executed an NDA. The CCAA Plan Administrators may request and, upon receipt of such request, Imperial shall produce to the CCAA Plan Administrators and, through the Virtual Data Rooms, to the Provinces, Territories and any Impacted Claimants all financial records and information necessary to, among other things: (i) Assess the financial performance of Imperial; (ii) Determine whether the Annual Contributions and Reserved Amounts have been calculated and paid in compliance with the Definitive Documents; (iii) Assess the rates, prices and any adjustments to such rates and prices as may be made in respect of any Intercompany Transaction by Imperial's Parent and the relevant Affiliates within its Tobacco Company Group in compliance with the requirements set out in Article 5, Section 5.14 herein; and (iv) Assess whether Imperial is operating in accordance with the Definitive Documents. Any Province, Territory or Impacted Claimant may request additional financial records and information from Imperial by submitting a request for same to the CCAA Plan Administrators, and the CCAA Plan Administrators shall make that request to Imperial. Notwithstanding the foregoing responsibility, the CCAA Plan Administrators may, in their discretion, decline to send to Imperial an Information Request which, in the reasonable view of the CCAA Plan Administrators, is improper or irrelevant; (c) Imperial shall fulfill its obligations to provide to the CCAA Plan Administrator regular quarterly, annual and, if requested by the CCAA Plan Administrator, ad hoc reporting of all information enumerated in Article 10, Sections 10.1, 10.2.1, 10.2.2, 10.2.3, 10.3 and 10.8 herein at the specified times including information regarding: Page 105 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 98 (i) Any non-compliance with any of the Definitive Documents or non-compliance with its Business Plan, including any issue, event or condition which caused or would reasonably be expected to cause a Material Adverse Effect on Imperial or that constitutes a Breach or an Event of Default; (ii) Confirmation of the amounts of the Annual Contributions to be made by it; and (iii) Confirmation of the Reserved Amounts received or realized by it; (d) Imperial shall apply any available Tax Attribute to its earliest taxation year permitted by Applicable Law to reduce taxable income in such taxation year, provided for greater certainty, that there shall be no requirement to reduce taxable income to an amount that is less than $100 in a taxation year; (e) Imperial shall diligently pursue any Tax Matter raised by a Tax Authority to establish a positive outcome for Imperial, keep the CCAA Plan Administrators reasonably informed of the progress of any Tax Matter with the relevant Tax Authority, and provide the CCAA Plan Administrators with reasonable opportunity to review and comment upon any submissions, objections or appeals lodged by Imperial in respect of any Tax Matter, provided that following any receipt of any such submissions, objections or appeals, the CCAA Plan Administrators shall not knowingly waive any applicable privilege in respect of such submissions, objections or appeals; (f) The chief financial officer of Imperial shall certify that the information provided to the CCAA Plan Administrator by Imperial pursuant to Article 10, Sections 10.1, 10.2.1, 10.2.2, 10.2.3, 10.3 and 10.8 herein is true and correct to the best of their knowledge, information and belief, and consistent with the information and data provided by Imperial to its Tobacco Company Group. Any such certification shall not give rise to any personal liability on the part of the applicable certifying officer; (g) Imperial and its Material Subsidiaries shall conduct their businesses in good faith with a view to fulfilling their obligations pursuant to the Definitive Documents, and shall not conduct their businesses and operations, divest assets, rearrange ownership, and/or alter their corporate structures, and/or operational practices, in any manner that circumvents or is adverse to the ability of Imperial to satisfy its obligations under the CCAA Plan including, the ability of Imperial to pay the Upfront Contributions, Tax Refund Cash Payments and/or Annual Contributions within the Contribution Period; (h) Except: (i) for the transfer of all of Imperial's Alternative Products Business to Newco pursuant to Article 4, Section 4.1 herein, (ii) for an Ordinary Course Divestiture made in accordance with Article 11, Section 11.4 herein, or (iii) with the consent of the Provinces and Territories and any Impacted Claimants, which consent shall not be unreasonably withheld (collectively, "Permitted Transfers"), in the event that Imperial or its Material Subsidiary seeks to transfer any or all of its assets and business to any other entity including an unrelated company, a Canadian Affiliate of its Parent, or a Canadian Subsidiary of any other company within its Tobacco Company Group ("Canada Newco"), pursuant to its CCAA Plan or otherwise (except, for greater certainty, its assets, Indebtedness, liabilities Page 106 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 99 and business relating to its Alternative Products), then upon the effective date of any such transfer, the balance then remaining owing by Imperial in respect of its share of the Annual Contributions and Reserved Amounts shall accelerate and become due and payable in full upon such effective date without any further action being required to be taken by the Claimants. In the event that an Impacted Claimant seeks to invoke the acceleration clause and any other Impacted Claimant or any Tobacco Company, including the defaulting Tobacco Company, take exception to such action, then the Impacted Claimant seeking to invoke the acceleration clause or the Tobacco Company may bring the issue before the CCAA Court for determination; (i) Neither Imperial nor any of its Material Subsidiaries shall create, incur, assume or suffer to exist or otherwise become liable for any Indebtedness, otherwise than in the Ordinary Course of Business; (j) Neither Imperial nor any of its Material Subsidiaries shall create, incur, assume, suffer to exist or otherwise become bound by or subject to any Encumbrance upon any of its properties and assets other than a Permitted Encumbrance; (k) Imperial shall not, and shall not permit any of its Material Subsidiaries to, merge into or amalgamate or consolidate or reorganize with any other Person, or permit any other Person to merge into or amalgamate or consolidate with it, or wind up, liquidate or dissolve; (l) Imperial shall not, and shall not permit any of its Material Subsidiaries to, change its name, type of organization, jurisdiction of organization or incorporation, chief executive office or registered office; (m) Imperial shall not, and shall not permit any of its Material Subsidiaries to, Dispose of (including pursuant to a dissolution) any of their respective property or assets, except for Permitted Transfers and Dispositions consisting of: (i) Inventory sold in the Ordinary Course of Business upon customary credit terms; (ii) Sales of worn-out, scrap or obsolete material or equipment which are not material in the aggregate; and (iii) Licenses granted to third parties in the Ordinary Course of Business; (n) Imperial shall not, and shall not permit any of its Material Subsidiaries to, assign any of its income to any other Person, and Imperial's Parent and any member of its Tobacco Company Group shall not cause Imperial to assign any of its income to any other Person; and (o) Imperial shall not withdraw funds or otherwise transfer or instruct the withdrawal or transfer of funds from the Imperial Supplemental Trust except in accordance with the terms hereof. Page 107 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 100 11.2 Ordinary Course Operational Activities Decisions made by Imperial's directors, officers and management, as applicable, pertaining to operational matters, including the matters enumerated in subparagraphs (a) through (n) herein ("Ordinary Course Operational Activities"), shall be considered to be within the reasonable exercise of Imperial's directors' and officers' business judgment, provided that such decisions are made in the Ordinary Course of Business, are consistent with Imperial's covenants and the terms of the CCAA Plan, and are in compliance with all Applicable Laws: (a) Product mix, pricing, volume and distribution of Tobacco Products; (b) Brands of Tobacco Products, provided that Imperial does not directly or indirectly: (i) Transfer a Tobacco Product brand with a profitable gross margin out of Canada to another company within its Tobacco Company Group, or (ii) Exit a Tobacco Product brand with a profitable gross margin such that Imperial is arbitrarily affected in a negative manner, as compared to other members of its Tobacco Company Group; (c) Customer rebates and trade allowances in regard to the sale of Tobacco Products; (d) Tobacco Products sales and promotional activities; (e) Sustaining capital expenditures to maintain Imperial's cash flows, operating capacity and earning capacity and maintain and preserve its assets in good working order. For greater certainty, activities undertaken and decisions made pertaining to investment CapEx are not Ordinary Course Operational Activities and are subject to the terms of Article 11, Section 11.3 herein; (f) Payment of expenses reasonably necessary for the preservation of Imperial's assets and business including payments on account of insurance (including directors and officers insurance), maintenance and security services; (g) Administration of Imperial's payroll including the payment of wages, salaries, commissions, compensation, vacation pay, bonuses, incentive and share compensation plan payments, reimbursement expenses (including amounts charged to corporate credit cards) and severance pay; (h) Administration of Imperial's benefit programs including expenses related to the employee and retiree medical insurance, dental insurance, disability insurance, life insurance and similar benefit plans or arrangements, and employee assistance programs; (i) Administration of Imperial's pension and retirement programs; (j) Remittance of statutory deemed trust amounts in favour of the Crown in right of Canada or of any Province or Territory or any other taxation authority which Imperial is required to Page 108 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;101 deduct from employees' wages, including amounts in respect of employment insurance, Canada Pension Plan, Quebec Pension Plan and income taxes; (k) Payment, withholding, or remittance of all Taxes required to be paid, withheld, or remitted by Imperial to a Governmental Authority under Applicable Law; (l) Posting of bonding collateral to satisfy regulatory or administrative requirements imposed on Imperial to provide security in relation to the collection and remittance of federal excise taxes and customs and import duties and federal, provincial and territorial tobacco taxes; and (m) Cash management, cash investment and treasury transactions including, payment of accounts payable, collection of accounts receivable, management of cash and liquidity, purchase of short term investment vehicles, issuing of letters of credit, funding of payroll, and management of foreign exchange positions. 11.3 CapEx Thresholds During the Contribution Period, Imperial may make capital expenditures, in addition to those reasonably necessary for the preservation of its assets, undertakings and properties or its business (including payments on account of insurance, maintenance and security services), to replace or supplement its assets, undertakings or properties, or that are otherwise of benefit to the business, provided that any single such expenditure is less than $1 million, or the aggregate of such expenditures in a calendar year is less than $10 million ("CapEx Thresholds"). The CapEx Thresholds shall be adjusted for inflation as appropriate. In the event that Imperial wishes to exceed the CapEx Thresholds for a valid business reason, it shall make a request in writing to the CCAA Plan Administrator in that regard and the CCAA Plan Administrator shall determine whether any increase is permitted. 11.4 Ordinary Course Divestitures Thresholds During the Contribution Period, Imperial may permanently or temporarily cease, downsize or shut down any of its business or operations that is redundant and non-material, or dispose of redundant or non-material assets (collectively, "Ordinary Course Divestitures") not exceeding $5 million in any one transaction or $10 million in any calendar year in the aggregate ("Ordinary Course Divestitures Thresholds"). The Ordinary Course Divestitures Thresholds may be adjusted for inflation as appropriate. In the event that Imperial wishes to exceed the Ordinary Course Divestitures Thresholds for a valid business reason, it shall make a request in writing to the CCAA Plan Administrator in that regard and the CCAA Plan Administrator shall determine whether any increase is permitted. ARTICLE 12. EVENTS OF DEFAULT, BREACHES AND REMEDIES 12.1 Aggrieved Parties in Dispute Resolution For the purpose of the dispute resolution processes set forth in Articles 12 and 13 of the CCAA Plan, the following Persons only may be "Aggrieved Parties": Page 109 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 102 (a) the Provinces and Territories collectively, the collective interests of which will be advanced in the dispute resolution processes in a coordinated manner through the PTLC. Notwithstanding the foregoing, each Province and Territory retains its right to pursue a claim individually should it decide to do so and, if any Province or Territory elects to do so, it shall be designated as an Aggrieved Party hereunder. However, such right shall not extend to any assignee of an Affected Claim of a Province or Territory; (b) the Pan-Canadian Claimants whose collective interests will be represented in the dispute resolution processes by the PCC Representative Counsel; (c) the QCAPs whose collective interests will be represented in the dispute resolution processes by the Quebec Class Counsel; (d) any other Impacted Claimant who has not yet been paid their full share of the Global Settlement Amount; and/or (e) the Cy-près Foundation solely for the purpose of enforcing any non-payment of any portion of the Cy-près Fund. Upon the occurrence of an event that may constitute an Event of Default or a Breach, any Aggrieved Party may exercise their rights and pursue any remedies available pursuant to the terms of the CCAA Plan, any other Definitive Documents and Applicable Law. For greater certainty, no Aggrieved Party shall have any rights to enforce the Contribution Security in the event of the occurrence and continuance of a Breach. In so doing, such Aggrieved Party shall consult with and communicate relevant information to all other Impacted Claimants regarding the steps to be taken, remedies sought, outcome and other significant matters relating to the resolution or determination of the Event of Default or Breach. 12.2 Events of Default The occurrence during the Contribution Period of any of the following events ("Events of Default") shall constitute an Event of Default subject, where applicable, to the Monetary Cure Period, Non-Monetary Cure Period or Extended Cure Period: (a) Imperial fails to pay or cause its Upfront Contribution or any portion thereof to be paid when due in accordance with the terms of the Definitive Documents; (b) Imperial fails to pay or cause any Annual Contribution or any portion thereof to be paid when due in accordance with the terms of the Definitive Documents; (c) Imperial fails to pay or cause a Reserved Amount or any portion thereof to be paid when due in accordance with the terms of the Definitive Documents; (d) Imperial fails to provide any annual Business Plan and MD&A at all to the CCAA Plan Administrator in accordance with Article 10, Section 10.1 and Article 10, Section 10.2.2 herein; Page 110 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 103 (e) Imperial fails to provide any quarterly financial statements and MD&A at all to the CCAA Plan Administrator in accordance with Article 10, Section 10.2.3 herein; (f) Imperial fails to provide any Annual Financial Statements at all to the CCAA Plan Administrator in accordance with Article 10, Section 10.2.1 herein; (g) Imperial fails to provide any information to the CCAA Plan Administrator at all regarding the calculation of the Annual Contributions and Reserved Amounts to be made by Imperial in respect of each calendar year in accordance with Article 10, Section 10.8 herein; (h) Imperial fails to respond to an ad hoc request from the CCAA Plan Administrator for information in connection with any of Imperial's Business Plan, annual MD&A, quarterly MD&A and Annual Financial Statements in accordance with Article 10, Section 10.3 herein; (i) Imperial's key management personnel fail to attend a quarterly meeting or any meeting scheduled ad hoc with the CCAA Plan Administrators in accordance with Article 10, Section 10.4 herein; (j) Imperial fails to provide the Contribution Security in accordance with Article 5, Section 5.13; (k) Any material provision in the CCAA Plan or in the Contribution Security Agreement or other Definitive Documents for any reason ceases to be valid, binding and enforceable against Imperial in accordance with its terms, or Imperial so asserts in writing; (l) Any representation or warranty made by Imperial in the CCAA Plan or in any other Definitive Document or in any report, certificate, financial statement or other instrument, agreement or document furnished pursuant hereto or thereto is false, incorrect, incomplete or misleading in any material respect as of the date that the representation or warranty was made or deemed to be made; (m) Imperial or its Material Subsidiary transfers any or all of its assets and business to any other entity including an unrelated company, a Canadian Affiliate of its Parent, or a Canada Newco, pursuant to its CCAA Plan or otherwise (except, for greater certainty, Permitted Transfers), or sells or otherwise disposes of its respective assets, including the disposition of manufacturing equipment and the transfer of trademarks, intellectual property and any other intangible assets, that are material to the conduct of the Ordinary Course of Business of Imperial or its Material Subsidiary, other than Permitted Transfers; (n) Imperial or its Material Subsidiary ceases or threatens to cease to carry on its business or admits its inability to pay its Indebtedness generally, or is insolvent or admits that it is insolvent; (o) Expressly excepting Imperial's CCAA Proceeding, a Bankruptcy Action exists in respect of Imperial or its Material Subsidiary; Page 111 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 104 (p) Any arrangement not permitted by the Definitive Documents is proposed involving a reclassification, reorganization, change or conversion of Imperial's shares or its consolidation with or into another entity; (q) A judgment, writ of execution, garnishment, sequestration, distress, attachment or similar process is issued or levied for the payment of money in a sum which exceeds $1 million against Imperial or its Material Subsidiary, and the same is not released, bonded, satisfied, discharged, vacated, accepted for payment by an insurer or otherwise stayed within 30 days from the date of notice of entry thereof; (r) Any remedial order that causes or would reasonably be expected to cause a Material Adverse Effect is issued by any Governmental Authority in respect of Imperial or its Material Subsidiary pursuant to any environmental law; (s) Imperial or its Material Subsidiary violates any legal requirement which results in the issuance of an order or the cancellation of any license or certificate or approval by a Governmental Authority that causes or would reasonably be expected to cause a Material Adverse Effect; (t) Imperial conducts its business and operations, divests assets, rearranges ownership, alters its corporate structure and/or operational practices either directly or indirectly, in any manner that circumvents or is adverse to the intention underlying the CCAA Plan, including the ability of Imperial to pay the Global Settlement Amount in full; (u) Any Encumbrance for the benefit of one or more of the Claimants created upon any properties or assets of Imperial or its Material Subsidiary, or intended so to be, pursuant to any Definitive Document ceases to be a valid and perfected Encumbrance, having the priority contemplated in the Definitive Documents; (v) Imperial or its Material Subsidiary creates, incurs, assumes, suffers to exist or otherwise becomes bound by or subject to any Encumbrance upon any of its properties and assets other than a Permitted Encumbrance; (w) An encumbrancer pursuant to an Encumbrance takes possession of, or forecloses or retains, or sells or otherwise disposes of, or otherwise proceeds to enforce an Encumbrance over any of the property or assets of Imperial or its Material Subsidiary; (x) Imperial or its Material Subsidiary fails to comply with an order, decision or award made by the Arbitrator or the CCAA Court; (y) The Parent fails to comply with its obligations pursuant to Article 5, Section 5.14, or an Order of the CCAA Court issued pursuant to Article 5, Section 5.14 or (z) Imperial withdraws or otherwise transfers or instructs the withdrawal or transfer of funds from the Imperial Supplemental Trust except in accordance with the terms hereof. Page 112 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;105 12.3 Cure of Events of Default Upon the occurrence of an Event of Default, an Aggrieved Party may deliver written notice to Imperial of such default ("Notice of Default") and: (a) If the Event of Default is one referred to in Article 12, Sections 12.2(j), 12.2(k) and 12.2(m) to 12.2(o) herein, no cure period (defined in subsections (b) or (c) as applicable below) shall apply; (b) If the Event of Default is one referred to in Article 12, Sections 12.2(a), 12.2(b) and 12.2(c) herein, and is capable of being remedied, Imperial shall have 10 days following receipt of the Notice of Default to remedy such default ("Monetary Cure Period"); (c) If the Event of Default is one referred to in Articles 12, Sections 12.2(d) to 12.2(i), 12.2(l) and 12.2(p) to 12.2(x) herein and is capable of being remedied, Imperial shall have 15 days following receipt of the Notice of Default to remedy such default ("Non-Monetary Cure Period") or, if the nature of such Event of Default is such that it is capable of being remedied, but is not capable of being remedied within the Non-Monetary Cure Period, then the Non-Monetary Cure Period shall be extended for a period not to exceed 45 days from the date that Imperial receives the Notice of Default (the "Extended Cure Period") as may be required to permit Imperial to remedy the Event of Default, provided that Imperial makes best efforts to remedy the Event of Default during the Extended Cure Period; or (d) If the Event of Default is the one referred to in Article 12, Section 12.2(y) herein and is capable of being remedied, the Parent shall have the Non-Monetary Cure Period to remedy such default or, if the nature of such Event of Default is such that it is capable of being remedied, but is not capable of being remedied within the Non-Monetary Cure Period, then the Non-Monetary Cure Period shall be extended for a period not to exceed the Extended Cure Period as may be required to permit the Parent to remedy the Event of Default, provided that the Parent makes best efforts to remedy the Event of Default during the Extended Cure Period. The discontinuance or correction of an Event of Default shall constitute a cure thereof. 12.4 Breach of CCAA Plan The occurrence during the Contribution Period of any of the following events constitutes a breach ("Breach") of Imperial's obligations pursuant to the CCAA Plan and other Definitive Documents: (a) On the part of Imperial: (i) The provision of an annual Business Plan and MD&A to the CCAA Plan Administrators the contents of which are deficient as they do not fulfill the requirements of Article 10, Section 10.1 and Article 10, Section 10.2.2 herein; (ii) The provision of quarterly financial statements and MD&A to the CCAA Plan Administrators the contents of which are deficient as they do not fulfill the requirements of Article 10, Section 10.2.3 herein; Page 113 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 106 (iii) The provision of Annual Financial Statements to the CCAA Plan Administrators the contents of which are deficient as they do not fulfill the requirements of Article 10, Section 10.2.1 herein; (iv) The provision to the CCAA Plan Administrators of information regarding the quantum of the Contributions and Reserved Amounts to be made by Imperial in respect of each calendar year, the contents of which are deficient as they do not fulfill the requirements of Article 10, Section 10.8 herein; (v) The provision of an unsatisfactory, incomplete or deficient response to an ad hoc request from the CCAA Plan Administrators for information in connection with any of Imperial's Business Plan, annual MD&A, quarterly MD&A and Annual Financial Statements in accordance with Article 10, Section 10.3 herein; (vi) The making of a capital expenditure that exceeds the applicable CapEx Threshold contrary to Article 11, Section 11.3 herein; (vii) The making of an Ordinary Course Divestiture that exceeds the applicable Ordinary Course Divestitures Threshold contrary to Article 11, Section 11.4 herein; (viii) The application of the Metric to calculate the Annual Contributions in a manner which is contrary to the applicable provisions of the Definitive Documents; and (ix) The calculation of the Reserved Amounts in a manner which is contrary to the applicable provisions of the Definitive Documents. (b) Any failure on the part of Imperial and/or its Material Subsidiary to perform its obligations in any material respect under any of the Definitive Documents that is not expressly enumerated in Article 12, Sections 12.2 or 12.4 of the CCAA Plan will constitute a Breach that shall be resolved in accordance with the Dispute Resolution Procedure set out in Section 13.1. 12.5 Recourse against Parent Notwithstanding anything to the contrary in this CCAA Plan or any other Definitive Document, recourse against any Parent and its Affiliates other than Imperial and its Subsidiaries under or in respect of this CCAA Plan and the other Definitive Documents shall be limited solely to circumstances involving a default by such Person of its obligations under Section 5.14, as determined by the CCAA Court. 12.6 Waiver of Events of Default and Breaches Any Event of Default or Breach, other than a failure to make a Contribution, may be waived in writing by the CCAA Plan Administrators, with the consent of the Provinces and Territories and any Impacted Claimants, subject to the approval of the CCAA Court. Page 114 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 107 ARTICLE 13. DISPUTE RESOLUTION PROCEDURE 13.1 Procedure for Dispute Resolution Any question, issue, difference of opinion, disagreement, claim, complaint or dispute arising from or out of, or in any way in connection with the interpretation, implementation, application, compliance with, enforcement of, or alleged breach or violation of any terms of any of the Definitive Documents ("Dispute") shall be addressed and determined in accordance with Articles 12 and 13 herein which set out the procedure for the resolution of all Disputes ("Dispute Resolution Procedure"). Only the Aggrieved Parties, Imperial, its Tobacco Company Group and the CCAA Plan Administrators, as applicable, shall be entitled to participate in any arbitration or CCAA Court proceeding conducted in accordance with the Dispute Resolution Procedure. 13.2 Investigation of Events causing a Material Adverse Effect Without limiting the rights of the Provinces, Territories and any other Impacted Claimants as Aggrieved Parties, if the CCAA Plan Administrators are made aware of an issue, event or condition regarding Imperial which caused or would reasonably be expected to cause a Material Adverse Effect, or may constitute a Breach or Event of Default, they will convene an ad hoc meeting with the PTLC Chair and any other Impacted Claimants to provide a preliminary report regarding the issue. If further information is required, the PTLC and any other Impacted Claimants may consult and prepare a written request for particulars ("Request for Particulars") which includes a statement of the Breach or Event of Default which Imperial is alleged to have committed. The PTLC Chair will provide the Request for Particulars to the CCAA Plan Administrators who shall send the Request for Particulars to Imperial. Notwithstanding the foregoing responsibility, the CCAA Plan Administrators may, in their discretion, decline to send to Imperial a Request for Particulars or other information request received from the PTLC Chair which, in the reasonable view of the CCAA Plan Administrators, is improper or irrelevant. Within ten days of receipt of a Request for Particulars, Imperial shall be required to provide a written response to the Request for Particulars and advise why the circumstances at issue do not constitute a Breach or an Event of Default. The deadline specified for Imperial's response may be extended on a case by case basis by the CCAA Plan Administrators, in consultation with the PTLC Chair, and will take into account the nature and complexity of the issue under review in order to set a reasonable and realistic time frame for the response. The CCAA Plan Administrators will provide to the PTLC Chair Imperial's written response to the Request for Particulars and their explanation regarding the alleged Breach or Event of Default. The PTLC Chair shall provide Imperial's written response to the PTLC and any other Impacted Claimants. The PTLC and any other Impacted Claimants will then consult and decide whether their position is that the issue: (a) Falls within Imperial's Ordinary Course Operational Activities such that it is not a Breach or an Event of Default; Page 115 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 108 (b) Is a Breach; or (c) Is an Event of Default. 13.3 Resolution of Breaches by Parties If an Aggrieved Party is of the view that Imperial has committed a Breach and it wishes to resolve such Breach, the Aggrieved Party shall deliver a written notice ("Notice of Breach") to Imperial providing particulars regarding the Breach to the extent they are known to the Aggrieved Party, including specifying all Sections of the Definitive Documents that are relevant to the Breach. After receiving a Notice of Breach Imperial may, within 10 days of such receipt, deliver to the Aggrieved Party a written request for further written particulars regarding the Breach. The Aggrieved Party shall have 10 days to respond to such request in writing. The deadline specified for Imperial's response may be extended on a case by case basis by the CCAA Plan Administrator, in consultation with the Aggrieved Party, and will take into account the nature and complexity of the issue under review in order to set a reasonable and realistic time frame for the response. Within 10 days after the later of the receipt of the Notice of Breach or the receipt of further particulars if any are known to the Aggrieved Party, Imperial shall deliver to the Aggrieved Party a written response to the Notice of Breach ("Response") which provides the full particulars of Imperial's position, including whether Imperial disputes the position of the Aggrieved Party in whole or in part, and the grounds for the disagreement with or denial of the position of the Aggrieved Party. The Aggrieved Party and Imperial shall have a period of time not exceeding 30 days following the delivery of the Response to consider and, if they believe appropriate to do so, discuss or address the Breach. If the matter is addressed to the reasonable satisfaction of the Aggrieved Party and Imperial within such 30 day period, then the issue in dispute shall be deemed to be resolved and shall not be the basis for further remedies pursuant to the Definitive Documents. 13.4 Resolution of Breaches by Arbitrator 13.4.1 Notice of Arbitration If the Aggrieved Party and Imperial fail to resolve a Breach within 30 days following Imperial's delivery of the Response, and the Aggrieved Party has decided to seek a resolution of the Breach by way of arbitration pursuant to Article 13, Section 13.2(b), they shall deliver a notice of arbitration to Imperial within a further thirty day period. Such notice of arbitration shall include the following information: (a) The specific terms of the Definitive Documents that are relevant to the Breach and the relief sought; (b) A concise summary of the material facts relevant to the issues raised in the Breach that are relied upon by the Aggrieved Party; and Page 116 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;109 (c) A statement of the material facts that Imperial accepts as correct, and a concise summary of the additional material facts upon which Imperial relies. Notwithstanding the foregoing, on the CCAA Court's own motion or upon application by any of the Aggrieved Party, Imperial, its Tobacco Company Group or the CCAA Plan Administrator as applicable, in exceptional circumstances the CCAA Court may, in its discretion, decide that it shall hear and determine a Breach in lieu of the Arbitrator doing so. All Breaches referred to the Arbitrator shall be arbitrated in accordance with the provisions of the Arbitration Act, 1991, S.O. 1991, c. 17, except to the extent that those statutory provisions are expressly varied by the terms hereof or the terms of the other Definitive Documents. 13.4.2 Appointment of an Arbitrator The Aggrieved Party and Imperial shall agree upon an Arbitrator to appoint who: (a) Is independent of the Parties and the CCAA Plan Administrators; (b) Is not and has never been in the employ of or under contract with any Party or any CCAA Plan Administrator at any time; and (c) Is qualified by education, experience and training to determine the subject matter of the Breach. If the Aggrieved Party and Imperial are unable to reach an agreement regarding the choice of Arbitrator, the CCAA Court shall appoint the Arbitrator from a list of five prospective Arbitrators provided by the Aggrieved Party and Imperial. The five prospective Arbitrators shall fulfill the criteria set forth in subsections (a) to (c) immediately above and shall have not been rejected by the Aggrieved Party or Imperial. If the Aggrieved Party and Imperial are unable to agree upon the list of five prospective Arbitrators, then the CCAA Court may appoint an Arbitrator in its discretion. The Arbitrator shall be empowered and shall have the discretion to conduct a mediation of the Breach and, in doing so, shall not be disqualified from conducting an arbitration hearing to resolve the Breach if the mediation is unsuccessful. The Aggrieved Party shall advise the Arbitrator of the position of the CCAA Plan Administrator and provide to the Arbitrator any report prepared by the CCAA Plan Administrator in regard to the issue to be arbitrated. 13.5 Jurisdiction of Arbitrator The Arbitrator has exclusive jurisdiction to determine: (a) All Disputes pertaining to a Breach unless, pursuant to Article 13, Section 13.4.1, the CCAA Court, in its discretion, decides that exceptional circumstances exist which warrant the CCAA Court hearing and determining a Breach in lieu of the Arbitrator doing so; Page 117 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 110 (b) All questions pertaining to the interpretation of the terms of the Definitive Documents; and (c) All questions of fact, law and mixed fact and law that arise in any Dispute referred to the Arbitrator for determination pursuant to Article 13, Section 13.4 herein. In deciding a Dispute, the Arbitrator shall apply the laws of the Province of Ontario and the Applicable Laws of Canada. The Arbitrator may receive evidence, rely upon it and determine what, if any, weight to give to the evidence, whether or not such evidence is admissible in a court of law. All decisions of the Arbitrator shall be final and conclusive for all purposes, and shall bind the parties to the arbitration. No appeal shall lie to the CCAA Court or any other Court in Canada from a decision of the Arbitrator on questions of fact, law or mixed fact and law. 13.6 Arbitration Remedies The Arbitrator shall decide a Dispute regarding a Breach in accordance with Applicable Law, including equity, and may order specific performance, injunctions and other equitable remedies. If the Arbitrator makes a finding against Imperial in regard to (i) the application of the Metric to calculate the Annual Contributions [Article 12, Section 12.4(viii)], or (ii) the calculation of the Reserved Amounts [Article 12, Section 12.4(ix)], the Arbitrator may: (a) Fix the amount of the Annual Contributions or Reserved Amounts, as applicable, that the Arbitrator shall order Imperial to pay; (b) Remit the matter back to Imperial with the direction that it recalculate the Annual Contributions or Reserved Amounts in accordance with the Arbitrator's findings, and make a finding as to the amount of the adjustment Imperial owes to the Aggrieved Parties. The Arbitrator shall retain jurisdiction over the matter pending its final disposition; or (c) Make any other order which the Arbitrator determines is appropriate. The Arbitrator has the jurisdiction to make an order as to interest or any additional sum in respect of any amount found to be due and owing by Imperial. If Imperial withholds payment of all or a portion of the Annual Contributions, or Reserved Amounts, then: (a) Interest shall accrue on the sum that is ultimately found to be owing to the Aggrieved Parties at the rate of interest payable pursuant to sections 127 and 129 of the Courts of Justice Act, R.S.O. 1990, c. C.43 as amended, such interest to accrue daily until the arbitral award, inclusive of such interest, has been paid in full; and (b) Any interest paid by Imperial shall not be applied to reduce the balance of the Global Settlement Amount owing. Page 118 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 111 13.7 Enforcement of Arbitrator's Awards A Party who is entitled to enforcement of an award made by the Arbitrator may make an application to the CCAA Court on notice to the Party or Person against whom enforcement is sought. The CCAA Court shall give a judgment enforcing the Arbitrator's award and shall have the same powers with respect to the enforcement of the Arbitrator's award as with respect to the enforcement of its own judgments. 13.8 Costs of Arbitration The Arbitrator may award full indemnity costs of an arbitration which include the parties' legal expenses, the fees and expenses of the Arbitrator and any other expenses related to the arbitration. 13.9 Jurisdiction of CCAA Court After the Effective Time, the CCAA Court shall retain jurisdiction over the CCAA Proceedings, be seized of the implementation of Imperial's CCAA Plan and have exclusive supervisory jurisdiction over the administration of the CCAA Plan, except that the US Bankruptcy Court shall retain jurisdiction with respect to the Sanction Recognition Order, and for the joint supervision of the Quebec Administration Plan by the CCAA Court and the Quebec Superior Court as described in Article 7, Section 7.2, until such time as the CCAA Plans have been fully implemented, including payment of the Global Settlement Amount in full. The CCAA Court shall, in its discretion, give such directions and make such orders as are necessary to facilitate the Parties completing the implementation of the CCAA Plan, including determining any Disputes that may arise between the Tobacco Companies, any or all members of the Tobacco Company Groups, the Claimants and/or the CCAA Plan Administrators arising out of or relating to the CCAA Plan in accordance with the Dispute Resolution Procedure. Without exception, the CCAA Court shall have the exclusive jurisdiction to determine: (a) Whether a matter falls within the scope of Article 13, Section 13.1 herein such that it shall be determined through the Dispute Resolution Procedure; (b) Whether, on the CCAA Court's own motion or upon application by an Aggrieved Party, Imperial, a member of its Tobacco Company Group or the CCAA Plan Administrators as applicable, the CCAA Court may, in its discretion, decide to hear and determine a Breach in lieu of the Arbitrator doing so in accordance with Article 13, Section 13.4 herein; and (c) All proceedings regarding Events of Default in accordance with Article 13, Section 13.11 herein. 13.10 Appeals from Orders or Decisions of CCAA Court Imperial, any applicable members of its Tobacco Company Group, the CCAA Plan Administrator or any Aggrieved Party who is a party to a proceeding that is determined by the CCAA Court in accordance with the Dispute Resolution Procedure may appeal from the order or decision of the CCAA Court in accordance with Sections 13, 14 and 15 of the CCAA. Page 119 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 112 13.11 Resolution of Events of Default by CCAA Court Upon the occurrence of any Event of Default, an Aggrieved Party shall be immediately entitled to exercise all rights and remedies available pursuant to the CCAA Plan and any other Definitive Documents and the laws of Ontario and the laws of Canada, including applying to the CCAA Court for such relief as the CCAA Court finds appropriate. In addition, upon the occurrence of any of the Events of Default enumerated in Article 12, Sections 12.2(d) to 12.2(i) herein, the CCAA Plan Administrator shall also be entitled to apply to the CCAA Court for such relief as the CCAA Court finds appropriate. The CCAA Court shall have the exclusive jurisdiction to determine all proceedings regarding Events of Default. The CCAA Court shall have exclusive jurisdiction to determine all matters related to the enforcement of the terms of the Contribution Security Agreement and the exercise of any rights, remedies and powers that the Collateral Agent may have under the Contribution Security Agreement, at law, in equity or under the PPSA. During the pendency of any proceeding in the CCAA Court relating to the occurrence of an Event of Default, Imperial shall continue to comply with its obligations pursuant to the Definitive Documents, including the obligation to pay the Annual Contributions and Reserved Amounts for deposit, respectively, into the Imperial Global Settlement Trust Account and Imperial Supplemental Trust Account. Upon the occurrence of: (a) An Event of Default referred to in Article 12, Section 12.3(a) herein, or (b) An Event of Default referred to in Article 12, Section 12.3(b) or Section 12.3(c) herein, where either Imperial fails to cure such Event of Default within the Monetary Cure Period, Non-Monetary Cure Period or Extended Cure Period, as applicable, or such Event of Default is incapable of being cured, the terms of Article 5, Section 5.11 shall govern, and Imperial shall fulfill its obligations thereunder. If Imperial fails to deposit into the Imperial Global Settlement Trust Account or the Imperial Supplemental Trust Account, as applicable, any amount at all on account of its respective share of any of the Upfront Contribution, any Annual Contribution or any Reserved Amounts, then the balance remaining to be paid of Imperial's share of the Global Settlement Amount shall accelerate and be deemed to be due and payable in full without any further action being required to be taken by any Aggrieved Party, and any and all amounts owing by Imperial under or in respect of the CCAA Plan or Definitive Documents shall bear interest at the rate of interest payable pursuant to sections 127 and 129 of the Courts of Justice Act, R.S.O. 1990, c. C.43 as amended. In the event that an Impacted Claimant seeks to invoke the acceleration clause and any other Impacted Claimant or any Tobacco Company, including the defaulting Tobacco Company, take exception to such action, then the Impacted Claimant seeking to invoke the acceleration clause or the Tobacco Company may bring the issue before the CCAA Court for determination. Page 120 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;113 ARTICLE 14. CCAA PLAN ADMINISTRATORS 14.1 Appointment of CCAA Plan Administrators Pursuant to the CCAA Plan Administrator Appointment Orders granted in the CCAA Proceedings, the CCAA Court approved the appointment of an Administrator for the CCAA Plan of each Tobacco Company (collectively, the "CCAA Plan Administrators") which shall administer the implementation of the Tobacco Company's CCAA Plan. The CCAA Plan Administrator Appointment Orders specify that the effective date of the CCAA Plan Administrators' appointment is March 6, 2025. Pursuant to the CCAA Plan Administrator Appointment Orders, the following firms were appointed to serve as the CCAA Plan Administrators until such time as such firms may be replaced with the further approval of the CCAA Court: (a) For Imperial, FTI Consulting Canada Inc; (b) For RBH, Ernst & Young Inc.; and (c) For JTIM, Deloitte Restructuring Inc. 14.2 Role of CCAA Plan Administrators The CCAA Plan Administrators shall be neutral and independent from the Tobacco Companies, the Tobacco Company Groups and the Claimants and, in this capacity, shall report to the CCAA Court. From time to time, in their discretion, the CCAA Plan Administrators may seek directions from the CCAA Court regarding any matters relevant to the implementation or administration of the Tobacco Companies' CCAA Plans. For greater certainty, in no circumstances shall the CCAA Plan Administrators: (a) Be or be deemed to be the representatives of the Claimants, Tobacco Companies and/or Tobacco Company Groups for the purposes of the implementation and administration of the CCAA Plan (including, without limitation, in respect of any notice, consent or agreement contemplated herein), or for any other purpose; (b) Have the authority to bind any of the Claimants in respect of any matters relating to the CCAA Plan, or any other matter; or (c) Have the authority to bind any of the Tobacco Companies or Tobacco Company Groups in respect of any matters relating to the CCAA Plan, or any other matter. The global settlement of all Tobacco Claims in Canada involves the concurrent resolution of the CCAA Proceedings of Imperial, RBH and JTIM in accordance with the terms of the CCAA Plans. As is set forth with more particularity in the CCAA Plan Administrator Appointment Order in each CCAA Proceeding, as appropriate and as necessitated by the circumstances of the matters being addressed, the CCAA Plan Administrators shall consult with each other and act jointly and in concert in fulfilling their duties and responsibilities enumerated in Article 14, Section 14.4 herein. Page 121 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 114 Accordingly, in certain instances in the CCAA Plan, the joint fulfillment of the CCAA Plan Administrators' duties and responsibilities is referenced. The CCAA Plan Administrators shall have access to all documents and information provided by each Tobacco Company during the Contribution Period, including the financial and other information produced by each Tobacco Company pursuant to Article 10 of the CCAA Plan. 14.3 Trustees of the Imperial Global Settlement Trust Account, Imperial PCC Trust Account, Imperial QCAP Trust Account, Imperial Cy-près Trust Account, Imperial Miscellaneous Claims Fund, Imperial CCAA Plan Administration Reserve Account and Imperial PCC Compensation Plan Reserve Account, and Bare Trustees of the Imperial Supplemental Trust Agreement Funds The Trustees shall hold and administer the Imperial Global Settlement Trust and establish and maintain the Imperial Global Settlement Trust Account, Imperial PCC Trust Account, Imperial QCAP Trust Account, Imperial Cy-près Trust Account, Imperial Miscellaneous Claims Fund and Imperial PCC Compensation Plan Reserve Account in accordance with the terms of the Imperial Deed. The Trustees shall hold and administer the Imperial CCAA Plan Administration Reserve Account in accordance with the terms of the Imperial CCAA Plan Administration Reserve Trust Deed. The Bare Trustees shall hold legal title to the Imperial Supplemental Trust Agreement Funds and establish the Imperial Supplemental Trust Account in accordance with the terms of the Imperial Tobacco Supplemental Trust Agreement. The details regarding these trust accounts are set forth in greater detail in the Imperial Deed, Imperial CCAA Plan Administration Reserve Trust Deed, Imperial Tobacco Supplemental Trust Agreement, Flow of Funds Agreement, Banking Arrangements Order and CCAA Plan Administrator Appointment Order, as applicable. For greater certainty, the CCAA Plan Administrators shall not be trustees, contributors or settlors in any capacity in regard to the Imperial Global Settlement Trust Account, Imperial PCC Trust Account, Imperial QCAP Trust Account, Imperial Cy-près Trust Account, Imperial Miscellaneous Claims Fund, Imperial CCAA Plan Administration Reserve Account, Imperial PCC Compensation Plan Reserve Account and Imperial Supplemental Trust Account. 14.4 Duties and Responsibilities of CCAA Plan Administrators In implementing the administration of the CCAA Plans during the Contribution Period, the duties and responsibilities of the CCAA Plan Administrators shall be as set out below provided, however, that the CCAA Plan Administrators shall incur no liability of any kind whatsoever to the Provinces, Territories, any Impacted Claimants or any other Person in respect of their performance of such duties and responsibilities and shall be held harmless in this regard: (a) On an annual basis, receiving and reviewing the Business Plan and accompanying MD&A which each Tobacco Company shall provide pursuant to Article 10, Sections 10.1 and Section 10.2.2 of their respective CCAA Plans; (b) On a quarterly basis, receiving and reviewing the financial statements and accompanying MD&A which each Tobacco Company shall provide pursuant to Article 10, Section 10.2.3 herein; Page 122 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 115 (c) On an annual basis, receiving and reviewing the financial statements with notes that each Tobacco Company shall provide pursuant to Article 10, Section 10.2.1 herein; (d) Receiving and reviewing the information that each Tobacco Company shall provide to the CCAA Plan Administrators regarding the calculation of the Annual Contributions and Reserved Amounts to be paid by each Tobacco Company in respect of each calendar year pursuant to Article 10, Section 10.8 herein; (e) Receiving and reviewing the information that each Tobacco Company shall provide in response to the ad hoc requests made from time to time by the CCAA Plan Administrators in connection with the Tobacco Company's Business Plan, annual MD&A, quarterly MD&A and Annual Financial Statements pursuant to Article 10, Section 10.3 herein; (f) Reporting to the Provinces, Territories and any Impacted Claimants regarding any issue, event or condition pertaining to a Tobacco Company which is disclosed to the CCAA Plan Administrators as an event which may constitute a Material Adverse Effect, or may constitute a Breach or an Event of Default; (g) Intentionally deleted; (h) Reporting to the Provinces, Territories and any Impacted Claimants regarding the calculation of the amount of the Annual Contributions and Reserved Amounts payable by the Tobacco Companies in each calendar year; (i) Overseeing and concurring with the release of funds from the Imperial Supplemental Trust Account pursuant to Article 5, Section 5.5; (j) Administering the distribution to the Claimants of amounts from the Imperial Global Settlement Trust Account in accordance with Article 16, Sections 16.1, 16.2 and 16.3 until such time as the implementation of all of the CCAA Plans has been completed; (k) Overseeing the administration of the PCC Compensation Plan including: (i) Intentionally deleted; (ii) Intentionally deleted; (iii) Reviewing the Global Claims Administration Costs Framework, the First Annual Global Claims Administration Costs Budget and the Subsequent Annual Global Claims Administration Costs Budget submitted by the Claims Administrator and the PCC Agent for the administration of the claims made to the PCC Compensation Plan; (iv) From time to time, providing a distribution plan to the Trustees for the advancement of instalments of funds from the Imperial PCC Trust Account to the Claims Administrator to enable it to make Individual Payments to Eligible Pan-Canadian Claimants; and Page 123 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 116 (v) Receiving and reviewing the Weekly Actual Costs Reports, Weekly Claims Administration Reports, Weekly Events Reports, Monthly Actual Costs Reports, Monthly Claims Administration Reports, Monthly Events Reports, and any other reports prepared by the Claims Administrator and the PCC Agent as circumstances warrant at any other times as requested by the CCAA Plan Administrators in their discretion or as the CCAA Court directs, in accordance with the terms of the Claims Administrator Order; (l) Certain oversight activities regarding the Cy-près Foundation; (m) Overseeing the administration of the Quebec Administration Plan including: (i) Intentionally deleted; (ii) Intentionally deleted; (iii) Reviewing the Global Claims Administration Costs Framework, the First Annual Global Claims Administration Costs Budget and the Subsequent Annual Global Claims Administration Costs Budget submitted by the Claims Administrator for the administration of the claims made to the Quebec Administration Plan; (iv) From time to time, providing a distribution plan to the Trustees for the advancement of instalments of funds from the Imperial QCAP Trust Account to the Claims Administrator to enable it to make Compensation Payments to Eligible Blais Class Members; and (v) Receiving and reviewing the Weekly Actual Costs Reports, Weekly Claims Administration Reports, Weekly Events Reports, Monthly Actual Costs Reports, Monthly Claims Administration Reports, Monthly Events Reports, and any other reports prepared by the Claims Administrator as circumstances warrant at any other times as requested by the CCAA Plan Administrators in their discretion or as the CCAA Court directs, by the Claims Administrator in accordance with the terms of the Claims Administrator Order; (n) On an annual basis, and as circumstances warrant at any other times in the discretion of the CCAA Plan Administrators, or as the CCAA Court directs, reporting to the CCAA Court regarding: (i) The annual amounts of the Annual Contributions and Reserved Amounts paid by the Tobacco Companies for deposit into the Imperial Global Settlement Trust Account and Imperial Supplemental Trust Account, and the progress of the payment of the share of the Global Settlement Amount allocated to the Provinces and Territories; (ii) The progress of the payment of the share of the Global Settlement Amount allocated to the Tobacco Producers; Page 124 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;117 (iii) The progress of the administration of the PCC Compensation Plan including the publication of notices, the PCC Claims Application Deadline to file claims, claims approved, claims rejected, claims under review, any delays in the claims process, disbursements made to Eligible Pan-Canadian Claimants, fees charged and disbursements made; (iv) The progress of the administration of the Cy-près Fund; (v) The progress of the administration of the Quebec Administration Plan including the publication of notices, the Blais Claims Application Deadline to file claims, claims approved, claims rejected, claims under review, any delays in the claims process, disbursements made to Eligible Blais Class Members, fees charged and disbursements made; and (vi) Any other matter which the CCAA Plan Administrators in their discretion deem to be appropriate. For greater certainty, the CCAA Plan Administrators shall not conduct an audit or other assurance engagement, or otherwise attempt to verify the accuracy or completeness of the financial information in each Tobacco Company's Business Plan, annual MD&A, quarterly MD&A, Annual Financial Statements and any information produced by a Tobacco Company in response to an ad hoc request from the CCAA Plan Administrators. Also, for greater certainty, the duties and responsibilities of the CCAA Plan Administrators are fully described in the CCAA Plan Administrator Appointment Order for each of Imperial, RBH and JTIM. 14.5 CCAA Plan Administrators' Communications The CCAA Plan Administrators shall communicate with: (a) the Chair of the Provincial and Territorial Liaison Committee representing the Provinces and Territories; (b) the Administrative Coordinator in regard to the Quebec Administration Plan and Quebec Class Counsel representing the Quebec Class Action Plaintiffs; (c) the Administrative Coordinator in regard to the PCC Compensation Plan, the PCC Agent and the PCC Representative Counsel for the Pan-Canadian Claimants; (d) the Claims Administrator; (e) the Chair of the Cy-près Foundation; (f) Knight Class Counsel; (g) Counsel for the Tobacco Producers; Page 125 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 118 (h) the Tobacco Companies; (i) the Trustees; (j) the Bare Trustees; and (k) the Collateral Agent. Notwithstanding the foregoing, in the performance of their duties and responsibilities under the CCAA Plan, the CCAA Plan Administrators may, in their discretion, communicate with any individuals as necessary or desirable. 14.6 Distributions to Claimants from Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account The Trustees shall administer the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account and, subject to the approval of the CCAA Court, from time to time, the CCAA Plan Administrators shall provide distribution plans to the Trustee in respect of payment from the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account of distributions in accordance with Article 16, Sections 16.1, 16.2 and 16.3 herein, which will be paid to the: (a) Quebec Class Action Plaintiffs; (b) Pan-Canadian Claimants; (c) Provinces and Territories; (d) Cy-près Foundation; (e) Tobacco Producers; and (f) Knight Class Action Plaintiffs. 14.7 Advisors to CCAA Plan Administrator The CCAA Plan Administrator, in its discretion, may retain any advisors, including legal, financial, investment or other advisors, to advise and assist it to carry out its duties in relation to the administration of the CCAA Plan. 14.8 Role of Court-Appointed Mediator after Sanction Order In accordance with the terms of the Sanction Order, the CCAA Plan Administrator Appointment Order, the Court-Appointed Mediator's Ongoing Services Direction and the Fee Approval Direction, following the granting of the Sanction Order, the Court-Appointed Mediator is empowered and authorized to provide the Court-Appointed Mediator's Ongoing Services until further Order of the CCAA Court. Page 126 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 119 14.9 Payment of Costs The professional fees, other fees, costs, disbursements, expenses, court costs and other expenditures, and all applicable Sales and Excise Taxes thereon (collectively, "Costs"), charged and incurred in relation to the settlement of the Tobacco Claims and the implementation and administration of the CCAA Plan shall be paid as follows: (a) All Costs incurred in respect of: (i) All services which the CCAA Plan Administrator provides in relation to the implementation and administration of the CCAA Plan, including the fulfillment of its duties and responsibilities enumerated in Article 14, Section 14.4 herein, and (ii) All services provided by all legal, financial, investment or other advisors engaged by the CCAA Plan Administrator, shall be paid biweekly by Imperial. Pursuant to the Fee Approval Direction, the Court- Appointed Mediator shall review the fees and disbursements of the Monitors and their counsel incurred since the commencement of the CCAA Proceedings (including any amounts accrued pre-filing but billed after the applicable filing date), and on an ongoing basis and advise the CCAA Court if, in his sole discretion, it is the opinion of the Court- Appointed Mediator, that the fees and disbursements of the Monitors and their counsel are fair and reasonable in the circumstances; (b) All Costs for the services of the Court-Appointed Mediator provided after the date of the Sanction Order, including for the services of any of his legal or other advisors, shall be paid equally by the Tobacco Companies; (c) All Costs for the services of the Claims Administrator, including for the services of any of its legal or other advisors, incurred in respect of the administration of the PCC Compensation Plan shall be paid equally by the Tobacco Companies; (d) All Costs for the services provided by the Administrative Coordinator, including for the services of any legal or other advisors to the Administrative Coordinator, shall be paid equally by the Tobacco Companies; (e) All Costs incurred in respect of the administration of the Cy-près Foundation shall be paid from the Cy-près Fund; (f) The Quebec Class Counsel Fee shall be paid out of and deducted from the QCAP Settlement Amount. The Quebec Class Counsel Fee and the retainer agreement respecting fees and disbursements between the Quebec Class Counsel and the representative plaintiffs in the Quebec Class Actions are subject to the approval of the CCAA Court and shall be dealt with at the Sanction Hearing; (g) All Costs incurred in respect of the services provided by Raymond Chabot (as agent for the Quebec Class Counsel on behalf of the QCAPs) in relation to the Quebec Administration Page 127 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 120 Plan both before and after the Plan Implementation Date shall be paid by the Quebec Class Counsel out of the Quebec Class Counsel Fee; (h) All Costs for the services of the Claims Administrator, including for the services of any of its legal or other advisors, incurred in respect of the administration of the Quebec Administration Plan shall be paid from the balance of the QCAP Settlement Amount net of the Quebec Class Counsel Fee; (i) All Costs for the services which the PCC Representative Counsel, including their advisors, provide in connection with the performance of their duties under the CCAA Plan, including the PCC Compensation Plan, and in the CCAA Proceeding shall be paid equally by the Tobacco Companies; (j) The Counsel for the Tobacco Producers' Fee shall be paid out of and deducted from the Tobacco Producers Settlement Amount. The Counsel for the Tobacco Producers' Fee and the retainer agreement respecting fees and disbursements between the Counsel for the Tobacco Producers and the representative plaintiffs in the Tobacco Producers' Actions are subject to the approval of the CCAA Court; (k) All Costs and disbursements of any kind incurred in respect of the administration of the distribution of payments to eligible Tobacco Producers shall be paid from the Tobacco Producers Settlement Amount; (l) The Knight Class Counsel Fee shall be paid out of and deducted from the Knight Class Action Plaintiffs Settlement Amount. The Knight Class Counsel Fee and the retainer agreement respecting fees and disbursements between the Knight Class Counsel and the representative plaintiff in the Knight Class Action are subject to the approval of the CCAA Court; and (m) All Costs and disbursements of any kind incurred in respect of the settlement of the Knight Class Action shall be paid from the Knight Class Action Plaintiffs Settlement Amount. The Costs enumerated in Article 14, Sections 14.9(a), (b), (c), (d) and (i) are expenses of the business and deducted from income in the calculation of the Metric. ARTICLE 15. IMPERIAL CCAA PLAN ADMINISTRATION RESERVE AND IMPERIAL PCC COMPENSATION PLAN RESERVE 15.1 Imperial CCAA Plan Administration Reserve On the Plan Implementation Date, the Imperial CCAA Plan Administration Reserve in the amount of $25.0 million, which sum shall be paid out of the Upfront Contributions, shall be established as security for the Imperial CCAA Plan Administration Reserve Costs. In accordance with the terms of the Imperial CCAA Plan Administration Reserve Trust Deed, the Trustees shall hold the Imperial CCAA Plan Administration Reserve in trust for those Persons who incur and are entitled to be paid Imperial CCAA Plan Administration Reserve Costs pursuant to the CCAA Plan. If the Imperial CCAA Plan Administration Reserve is no longer required as Page 128 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;121 security after the administration of the CCAA Plan has been completed, any amount remaining in the Imperial CCAA Plan Administration Reserve shall be released in accordance with the terms of the Imperial CCAA Plan Administration Reserve Trust Deed and paid to the Provinces and Territories in accordance with the percentages set out in the table in Article 16, Section 16.3. 15.2 Imperial PCC Compensation Plan Reserve On the Plan Implementation Date, the Imperial PCC Compensation Plan Reserve, to be paid out of the Upfront Contributions in the Imperial Global Settlement Trust Account and deposited into the Imperial PCC Compensation Plan Reserve Account, shall be established as security for the PCC Compensation Plan Reserve Costs. The Trustees shall hold the Imperial PCC Compensation Plan Reserve in trust for those Persons who incur and are entitled to be paid PCC Compensation Plan Reserve Costs pursuant to the CCAA Plan. In aggregate, the Imperial PCC Compensation Plan Reserve, RBH PCC Compensation Plan Reserve and JTIM PCC Compensation Plan Reserve shall total $5.0 million. The proportionate shares of the aggregate amount of $5.0 million which shall be deposited from the Tobacco Companies' respective Upfront Contributions into the Imperial PCC Compensation Plan Reserve Account, RBH PCC Compensation Plan Reserve Account and JTIM PCC Compensation Plan Reserve Account shall be equal to the proportionate shares of the Upfront Contributions made by Imperial, RBH and JTIM. If the Imperial PCC Compensation Plan Reserve is no longer required as security after the administration of the PCC Compensation Plan has been completed, any amount remaining in the Imperial PCC Compensation Plan Reserve shall be released and paid to the Provinces and Territories in accordance with the percentages set out in the table in Article 16, Section 16.3. [Remainder of page intentionally left blank] Page 129 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 122 ARTICLE 16. CLAIMANT ALLOCATION 16.1 Claimant Allocation The Global Settlement Amount shall be allocated among the Claimants and the Cy-près Foundation ("Claimant Allocation") as follows: All amounts in CAD, billions Provinces and Territories Settlement Amount: 24.725 QCAP Settlement Amount ($4.250 minus $0.131 allocated to Cy-près Foundation): 4.119 PCC Compensation Plan Amount: 2.521 Cy-près Fund (inclusive of $0.131 QCAP Cy-près Contribution): 1.000 Tobacco Producers Settlement Amount: 0.015 Knight Class Action Plaintiffs Settlement Amount: 0.015 Miscellaneous Claims Amount (may be increased to $0.060 if the Tobacco Companies make an election pursuant to Section 18.2.1): 0.025 CCAA Plan Administration Reserves 0.075 PCC Compensation Plan Reserves 0.005 Total: 32.500 [Remainder of page intentionally left blank] Page 130 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 123 Estimated Upfront Contributions Available: 12.456 See calculation below, 2 Period4 Total Amount Available3 12.456 1.111 1.078 1.067 1.037 1.037 14.714 32.500 Provinces & Territories 6.202 0.361 0.682 0.942 0.912 0.912 14.714 24.725 QCAPs5, 6, 7, 8 3.869 0.250 4.119 PCCs6, 7, 8 1.750 0.500 0.271 2.521 Cy-près Foundation5, 6 0.500 0.125 0.125 0.125 0.125 1.000 Tobacco Producers8 0.015 0.015 Knight Class Action Plaintiffs8 0.015 0.015 Miscellaneous Claims Funds7 0.025 0.025 CCAA Plan Administration Reserves7 0.075 0.075 PCC Compensation Plan Reserves7 0.005 0.005 Total allocated 12.456 1.111 1.078 1.067 1.037 1.037 14.714 32.500 16.2 Explanatory Notes 1. In preparing the Claimant Allocation, the Court-Appointed Mediator and Monitors have been provided with, and have relied upon, unaudited financial information prepared by the Tobacco Companies. The Monitors have reviewed this financial information for reasonableness, internal consistency and use in the context in which it was provided. However, the Monitors have not audited, or otherwise attempted to verify the accuracy or completeness of such information in a manner that would wholly or partially comply with GAAS pursuant to the Chartered Professional Accountants of Canada Handbook and, accordingly, the Monitors express no opinion or other form of assurance contemplated under GAAS in respect of the financial information. For clarity, the Court-Appointed Mediator has not reviewed the aforementioned financial information. This financial information consists of forecasts and projections. An examination or review of the financial forecast and projections, as outlined in the Chartered Professional Upfront Contribution Annual Contributions Remainder to end of Contribution Year 1 (2025) Year 2 ('26) Year 3 ('27) Year 4 ('28) Year 5 ('29) Period Page 131 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 124 Accountants of Canada Handbook, has not been performed. The financial information was prepared based on the Tobacco Companies' estimates and assumptions. Readers are cautioned that since projections are based on assumptions about future events and conditions that are not ascertainable, the actual results will vary from the projections, even if the assumptions materialize, and the variations could be significant. 2. In the table below, the Upfront Contributions are as estimated as at December 31, 2024 and calculated as estimated in the Spring 2024 5-year forecasts prepared by the Tobacco Companies. The Upfront Contributions will be as noted herein for all Claimants except the Provinces and Territories. The Upfront Contributions for the Provinces and Territories will be equal to the total Upfront Contributions less the Upfront Contributions being paid to the other Claimants, the Miscellaneous Claims Amount, the Imperial CCAA Plan Administration Reserve, the RBH CCAA Plan Administration Reserve, the JTIM CCAA Plan Administration Reserve, the Imperial PCC Compensation Plan Reserve, the RBH PCC Compensation Plan Reserve and the JTIM PCC Compensation Plan Reserve. All amounts in CAD, billions Projected Upfront Contributions as at December 31, 2024: JTIM: 1.581 ITCAN: 4.849 RBH: 5.792 Cash Security Deposits: 0.984 Total: 13.206 Less: RBH Retained Amount (0.750) Projected Available Upfront Contributions: 12.456 Pursuant to the Cash Security Deposits Order, the Cash Security Deposits, which form part of the Upfront Contributions, shall be released from suretyship and shall be deposited by the Minister of Finance of Quebec into the Imperial Global Settlement Trust Account and RBH Global Settlement Trust Account as applicable. Notwithstanding the foregoing, the Minister of Finance of Quebec may deposit the Cash Security Deposits into the Imperial Global Settlement Trust Account and RBH Global Settlement Trust Account, as applicable, in whole or in part as soon as practicable after the Plan Implementation Date. Any portion of the Cash Security Deposits that is deposited into the Imperial Global Settlement Trust Account and RBH Global Settlement Trust Account on or before the Plan Implementation Date shall be distributed to the Claimants and the Cy-près Foundation pro rata in accordance with the Claimant Allocation. As and when payments on account of the Cash Security Deposits are deposited by the Minister of Finance of Quebec into the Imperial Global Settlement Trust Account and RBH Global Settlement Trust Account after the Plan Page 132 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;125 Implementation Date, such payments shall be distributed to the Claimants and the Cy-près Foundation pro rata in accordance with the Claimant Allocation. 3. The Annual Contribution percentage of Net After-Tax Income is calculated as set out in the CCAA Plan. The Claimant Allocation is based on 85% of estimated Net After-Tax Income received from the Tobacco Companies (the percentage of Net After-Tax Income to be reduced in 5.0% increments every five years pursuant to Article 5, Section 5.6 herein). The "Amount Available" is based on the 5-year financial projections provided by the Tobacco Companies in spring 2024. The projection assumes that the 2028 results are replicated thereafter. The Claimant Allocation does not include any Tax Refunds that may be available during the Contribution Period. 4. Payment is contemplated to be made within 182 days following the end of the period noted. For example, the "Year 1 (2025)" payment would be made in mid 2026. 5. The Cy-près Fund includes $131 million of the QCAP Settlement Amount funded to the Cy-près Fund (in addition to the $869 million specifically allocated to the Cy-près Fund). 6. The Year 1 and Year 2 payments to the QCAPs and the PCCs and the Year 2 payment to the Cy-près Foundation will be made in priority to those being made to the Provinces and Territories in the event of a shortfall relative to the estimated Annual Contributions available. 7. If there are any funds remaining in the QCAP Settlement Amount, the PCC Compensation Plan Amount, the Imperial CCAA Plan Administration Reserve, the RBH CCAA Plan Administration Reserve, the JTIM CCAA Plan Administration Reserve, the Imperial PCC Compensation Plan Reserve, the RBH PCC Compensation Plan Reserve, the JTIM PCC Compensation Plan Reserve, the Imperial Miscellaneous Claims Fund, RBH Miscellaneous Claims Fund and/or the JTIM Miscellaneous Claims Fund, such funds shall be paid to the Provinces and Territories (in accordance with the percentages set out in the table in Article 16, Section 16.3), as the foregoing is more particularly defined in paragraph 55 of the Quebec Administration Plan, paragraph 54 of the PCC Compensation Plan, Article 15, Sections 15.1 and 15.2 herein, and Article 18, Section 18.2.5 herein. 8. The Quebec Class Counsel Fee, Counsel for the Tobacco Producers' Fee and Knight Class Counsel Fee are subject to approval by the CCAA Court. Subject to such approval, these fees will be paid in full at the time of plan implementation. 16.3 Provincial and Territorial Allocation The Provinces and Territories have agreed that the Provinces and Territories Settlement Amount shall be apportioned among the Provinces and Territories in accordance with the percentages set out in the table below: Page 133 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 126 Province/Territory Percentage Share of Provinces and Territories Settlement Amount British Columbia 14.4710% Alberta 12.6272% Saskatchewan 2.8787% Manitoba 4.5252% Ontario 28.7761% Québec 26.8248% New Brunswick 2.4117% Nova Scotia 3.1740% Prince Edward Island 0.6605% Newfoundland and Labrador 2.1471% Yukon 0.3973% Northwest Territories 0.7269% Nunavut 0.3795% Total: 100.0000% ARTICLE 17. DISTRIBUTIONS, PAYMENTS AND CURRENCY 17.1 Distributions Generally All distributions to Affected Creditors and other payments to be effected pursuant to the CCAA Plan will be made pursuant to this Article 17. For greater certainty, all payments and distributions pursuant to this Article 17 will be subject to satisfaction or waiver of the Plan Implementation Conditions set forth in Article 19, Section 19.3 and the occurrence of the Effective Time, and will occur in accordance with the timing set out in Article 4, Section 4.2. Except as otherwise expressly stated herein, FTI, whether in its capacity as the Monitor and/or as the CCAA Plan Administrator, shall have the sole discretion to determine the timing for any distributions to be made under the CCAA Plan. Page 134 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 127 17.2 Payment of Claimants' Claims All distributions to the Claimants will be made pursuant to this Article 17 and Article 16, Sections 16.1, 16.2 and 16.3 herein. 17.3 Payment of Miscellaneous Claims All distributions to any Putative Miscellaneous Claimants will be made pursuant to this Article 17 and Article 18, Section 18.2.1 to Section 18.2.5. 17.4 Payment of Claims secured by the Administration Charge To the extent that such payments have not already been made, forthwith after the Plan Implementation Date, Imperial shall pay in full all Claims secured by the Administration Charge as at the Plan Implementation Date. 17.5 Payment of Claims secured by the Court-Appointed Mediator Charge To the extent that such payments have not already been made, forthwith after the Plan Implementation Date, Imperial shall pay in full all Claims secured by the Court-Appointed Mediator Charge as at the Plan Implementation Date. 17.6 Method of Distribution All distributions or other payments by the CCAA Plan Administrators to any Person entitled to receive a distribution or payment under the CCAA Plan shall be made by wire transfer in accordance with wire transfer instructions, in form satisfactory to the CCAA Plan Administrators, provided by such Person to the CCAA Plan Administrators at least fifteen (15) Business Days prior to the Plan Implementation Date. If any such Person wishes to thereafter change its wire transfer instructions, notice, in form satisfactory to the CCAA Plan Administrators, must be given to the CCAA Plan Administrators at least fifteen (15) Business Days prior to any subsequent distribution or payment date. For greater certainty, the CCAA Plan Administrators may, prior to initiating any wire transfer, make any verifications, as they deem appropriate in their discretion, to confirm and validate the wire transfer instructions received. Notwithstanding the foregoing, in circumstances where the CCAA Plan Administrators consider it more practical or efficient to do so, certain payments hereunder may also be made by cheque. 17.7 Addresses for Distribution Prior to the applicable Distribution Record Date, an Affected Creditor may, in writing to Imperial and FTI, whether in its capacity as the Monitor and/or as the CCAA Plan Administrator, change its address on file with Imperial for distribution purposes. For the avoidance of doubt, FTI will not have any responsibility to track such addresses or notices in any capacity. Page 135 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 128 17.8 Withholding Rights FTI, whether in its capacity as the Monitor and/or as the CCAA Plan Administrator, Imperial and any other Person facilitating payments pursuant to the CCAA Plan will be entitled to deduct and withhold from any such payment to any Person such amounts as may be required to be deducted or withheld under any Applicable Law and to remit such amounts to the appropriate Governmental Authority or other Person entitled thereto. To the extent that amounts are so withheld or deducted and remitted to the appropriate Governmental Authority or other Person, such withheld or deducted amounts will be treated for all purposes hereof as having been paid to such Person as the remainder of the payment in respect of which such withholding or deduction was made. Without in any way limiting the generality of the foregoing, FTI, on behalf of Imperial, shall deduct from any distribution to an Affected Creditor hereunder any amounts as indicated by Employment and Social Development Canada in a Notice of Debt and remit such amounts to Employment and Social Development Canada pursuant to the Employment Insurance Act (Canada). Any Affected Creditor whose address on file with Imperial on the Distribution Record Date is not a Canadian address will be treated as a non-resident of Canada for purposes of any applicable non-resident withholding tax on all payments hereunder, subject to receipt by FTI or Imperial of information satisfactory (in their sole discretion) that such Affected Creditor is not a non-resident. No gross- up or additional amount will be paid on any payment hereunder to the extent FTI, Imperial or any other Person deducts or withholds amounts pursuant to Article 17, Section 17.8. Notwithstanding any withholding or deduction, each Person receiving a payment will have the sole and exclusive responsibility for the satisfaction and payment of any tax obligations imposed by any Governmental Authority (including income and other tax obligations on account of such distribution). 17.9 Cancellation of Certificates and Notes, etc. At the Effective Time, all debentures, notes, certificates, indentures, guarantees, agreements, invoices and other instruments evidencing Affected Claims, Released Claims or Miscellaneous Claims (and all guarantees associated with each of the foregoing), will not entitle any holder thereof to any compensation or participation other than as expressly provided for in the CCAA Plan and will be deemed cancelled and extinguished and be null and void. 17.10 Calculations All amounts to be paid to the Claimants by Imperial pursuant to the CCAA Plan shall be calculated in accordance with Article 5, Section 5.1 to Section 5.15. 17.11 Currency Matters Distributions to any Persons entitled to distributions under the CCAA Plan will be paid in Canadian dollars and any such Claims that are denominated in a currency other than the lawful money of Canada will be converted to the equivalent thereof in the lawful money of Canada at the noon rate of exchange as quoted by the Bank of Canada on March 8, 2019, in accordance with the Claims Procedure Order. Page 136 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;129 ARTICLE 18. RELEASES, MISCELLANEOUS CLAIMS, INJUNCTIONS AND DISPOSITION OF PENDING PROCEEDINGS 18.1 CCAA Plan Releases 18.1.1 Consideration for Release The release ("Release") is given by the Releasors, individually and collectively, in consideration of (a) the Tobacco Companies' payment of the Upfront Contributions and promise to pay the Annual Contributions to the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account, as applicable, and the Reserved Amounts to the Imperial Supplemental Trust Account, RBH Supplemental Trust Account and JTIM Supplemental Trust Account, as applicable, in accordance with the Definitive Documents, (b) the agreement to provide shared services and other operational support to the Tobacco Companies by their respective Parents and relevant Affiliates, and (c) the other promises and commitments made by the Released Parties, or any of them as applicable, in the Definitive Documents. 18.1.2 Release At the Effective Time, each of the Released Parties shall be, and shall be deemed to be, fully, finally, irrevocably and unconditionally released and forever discharged of and from any and all of the Released Claims that any of the Releasors has ever had, now has, or may hereafter have against the Released Parties or any of them (either individually or with any other Person), whether or not based on conduct continuing after the Effective Time and whether or not presently known to any of the Releasors. Nothing herein does release (and the Released Parties agree hereby that they will not assert otherwise), or is intended to release, any Claim of a Released Party (including its Representatives) that has been, could have been or could be advanced, directly or indirectly, against any other Released Party (including its Representatives) other than the Tobacco Companies and their respective Subsidiaries and Representatives (such other Released Parties, not including the Tobacco Companies and their respective Subsidiaries and Representatives, collectively, the "Other Released Parties"), in respect of: (a) the development, design, manufacture, production, marketing, advertising, distribution, purchase, sale or disposition of Tobacco Products outside of Canada, (b) the use of or exposure (whether directly or indirectly) to Tobacco Products or their emissions outside of Canada, (c) the development of any disease related to the use of Tobacco Products outside of Canada, (d) any representation or omission in respect of Tobacco Products outside of Canada, or (e) conduct of the Other Released Parties not related to Canada; Page 137 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 130 provided that such Claim is not, in whole or in part, based on or related to the assets, obligations, business or affairs of the Tobacco Companies or conduct of the Other Released Parties related to Canada (and it is agreed that to the extent such Claim is based on or related to the assets, obligations, business or affairs of the Tobacco Companies or conduct of the Other Released Parties related to Canada, then that same extent of the Claim will be hereby released). 18.1.3 Claimant Contractual Release The Claimant Contractual Release, which is attached to the CCAA Plan as Schedule "T", shall be executed and delivered by Imperial and each of the Claimants, or an authorized Person on their behalf, in favour of the Released Parties, the Monitors, the CCAA Plan Administrators, the Court- Appointed Mediator and the Administrative Coordinator, and their respective Representatives, and shall take effect as at the Effective Time. From and after the Effective Time, the Claimant Contractual Release will be binding on and enure to the benefit of the Released Parties, the Monitors, the CCAA Plan Administrators, the Court-Appointed Mediator and the Administrative Coordinator and their respective Representatives. 18.1.4 Release of Monitors At the Effective Time, all Persons including the Released Parties, the Releasors and Affected Creditors (whether or not CCAA proofs of claim have been filed on their behalf), and the Unaffected Creditors, individually and collectively, shall be deemed to fully, finally, irrevocably and unconditionally release and forever discharge the Monitors and the CCAA Plan Administrators, and their respective Affiliates, shareholders, Affiliates' shareholders, directors, officers, employees, legal counsel, advisors, consultants, Representatives and agents from any and all Claims whatsoever, which they have ever had, now have, or may hereafter have, against them, whether foreseen or unforeseen, whether matured or unmatured, or whether or not presently known, arising from or out of in whole or in part any omission, transaction, duty, responsibility, liability, obligation, dealing or other occurrence, or in any way in connection with the CCAA Proceedings, including: (i) any Claim that has been barred or extinguished pursuant to the terms of the Claims Procedure Order and/or the terms of the CCAA Plan; (ii) the CCAA Proceedings; (iii) the Chapter 15 Proceedings; (iv) the actions of the Monitors or the CCAA Plan Administrators and their legal counsel and advisors in connection with the CCAA Proceedings or the Chapter 15 Proceedings; (v) the business and affairs of the Tobacco Companies whenever or however conducted; (vi) the administration and management of the Tobacco Companies whenever or however conducted; (vii) the allocation of the Global Settlement Amount and any distributions, payments, disbursements from the Global Settlement Amount, and/or (viii) any matter or transaction involving any of the Tobacco Companies occurring in or in connection with the CCAA Proceedings or the Chapter 15 Proceedings including the CCAA Plans, the development thereof, and any and all actions, steps or transactions taken by the Monitors to implement the CCAA Plans, including in their capacity as CCAA Plan Administrators and in FTI's capacity as the Foreign Representative, and in each case, all Claims arising out of aforesaid actions or omissions above shall be forever waived and released (other than the right to enforce the Monitors' obligations under the CCAA Plans or any related document), all to the fullest extent permitted by Applicable Law. Page 138 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 131 Nothing in this Release shall derogate from the protections afforded to the Monitors or the CCAA Plan Administrators as officers of the CCAA Court, or in the case of FTI, as the Foreign Representative in the Chapter 15 Proceedings, and by the CCAA Plans, the CCAA, any other applicable legislation and any Orders made in the CCAA Proceedings or the Chapter 15 Proceedings. For greater certainty, the Monitors and the CCAA Plan Administrators shall not be responsible or liable for any obligations of the Tobacco Companies. The Monitors and the CCAA Plan Administrators and their respective Affiliates, shareholders, Affiliates' shareholders, employees, advisors, legal counsel, Representatives or agents shall not incur any personal liability whatsoever whether on their own part or in respect of any failure on the part of any Tobacco Company to observe, perform or comply with any of its obligations under its CCAA Plan or any other Definitive Document. 18.1.5 Release of Court-Appointed Mediator At the Effective Time, all Persons including the Released Parties, the Releasors and Affected Creditors (whether or not CCAA proofs of claim have been filed on their behalf), and the Unaffected Creditors, individually and collectively, shall be deemed to fully, finally, irrevocably and unconditionally release and forever discharge the Court-Appointed Mediator, and his Representatives, legal counsel, consultants and advisors, from any and all Claims whatsoever, which they have ever had, now have, or may hereafter have, against them, whether foreseen or unforeseen, whether matured or unmatured, or whether or not presently known to the Released Parties, Releasors, Affected Creditors and Unaffected Creditors arising from or out of in whole or in part any omission, transaction, duty, responsibility, liability, obligation, dealing or other occurrence in any way in connection with the CCAA Proceedings, including: (i) any Claim that has been barred or extinguished pursuant to the terms of the Claims Procedure Order and/or the terms of the CCAA Plan; (ii) the CCAA Proceedings; (iii) the Chapter 15 Proceedings; (iv) the actions of the Court-Appointed Mediator as an officer of the CCAA Court carrying out his mandate as a neutral third party to mediate a global settlement in the Tobacco Companies' CCAA Proceedings; (v) the business and affairs of the Tobacco Companies whenever or however conducted; (vi) the administration and management of the Tobacco Companies whenever or however conducted; (vii) the allocation of the Global Settlement Amount and any distributions, payments, disbursements from the Global Settlement Amount, and/or (viii) any matter or transaction involving any of the Tobacco Companies occurring in or in connection with the CCAA Proceedings or the Chapter 15 Proceedings including the CCAA Plans, the development thereof, and any and all actions, steps or transactions taken by the Court-Appointed Mediator to implement the CCAA Plans, and in each case, all Claims arising out of aforesaid actions or omissions above shall be forever waived and released to the fullest extent permitted by Applicable Law. Nothing in this Release shall derogate from the protections afforded to the Court-Appointed Mediator as an officer of the CCAA Court and by the CCAA Plans, the CCAA, any other applicable legislation, including pursuant to Section 142 of the Courts of Justice Act, R.S.O. 1990, c. C.43, and any Orders made in the CCAA Proceedings or the Chapter 15 Proceedings, including the orders appointing the Court-Appointed Mediator. In particular, the Court-Appointed Mediator shall not be liable to any Party or participant in the mediation for any act or omission in connection with the mediation process and shall have the immunity of a Judge of a Superior Court in Canada. For greater certainty, the Court-Appointed Mediator shall not be responsible or liable for any obligations of the Tobacco Companies. The Court-Appointed Mediator's heirs, successors, Page 139 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 132 assigns, representatives, advisors, legal counsel, consultants or agents shall not incur any personal liability whatsoever whether on their own part or in respect of any failure on the part of any Tobacco Company to observe, perform or comply with any of its obligations under its CCAA Plan or any other Definitive Document. 18.1.6 Release of Administrative Coordinator At the Effective Time, all Persons including the Released Parties, the Releasors and Affected Creditors (whether or not CCAA proofs of claim have been filed on their behalf), and the Unaffected Creditors, individually and collectively, shall be deemed to fully, finally, irrevocably and unconditionally release and forever discharge the Administrative Coordinator and his Representatives from any and all Claims whatsoever, which they have ever had, now have, or may hereafter have, against them, whether foreseen or unforeseen, whether matured or unmatured, or whether or not presently known to the Released Parties, Releasors, Affected Creditors and Unaffected Creditors arising from or out of in whole or in part any omission, transaction, duty, responsibility, liability, obligation, dealing or other occurrence, or in any way in connection with the CCAA Proceedings, including: (i) the CCAA Proceedings; (ii) the Chapter 15 Proceedings; (iii) the development of the PCC Compensation Plan and the development of the Quebec Administration Plan; and (iv) the actions of the Administrative Coordinator in connection with the administration of the PCC Compensation Plan and the administration of the Quebec Administration Plan, and in each case, all Claims arising out of aforesaid actions or omissions above shall be forever waived and released to the fullest extent permitted by Applicable Law. Nothing in this Release shall derogate from the protections afforded to the Administrative Coordinator by the CCAA Plans, the CCAA, any other applicable legislation and any Orders made in the CCAA Proceedings or the Chapter 15 Proceedings. For greater certainty, the Administrative Coordinator shall not be responsible or liable for any obligations of the Tobacco Companies. None of the Administrative Coordinator's heirs, successors, assigns, Representatives, advisors, legal counsel, consultants or agents shall incur any personal liability whatsoever whether on their own part or in respect of any failure on the part of any Tobacco Company to observe, perform or comply with any of its obligations under its CCAA Plan or any other Definitive Document. 18.1.7 Indemnity of Monitors, CCAA Plan Administrators, Foreign Representative, Court-Appointed Mediator and Administrative Coordinator Imperial shall indemnify and save harmless the Court-Appointed Mediator, the Monitors (FTI, EY and Deloitte) in their various capacities (including as the Monitors, the CCAA Plan Administrators, and Foreign Representative (as applicable)), the Administrative Coordinator and, as applicable, their respective Affiliates, shareholders, Affiliates' shareholders, directors, officers, employees, legal counsel, advisors, consultants, Representatives and agents (collectively, the "Indemnified Parties"), from and against all claims, demands, losses, actions, causes of action, costs, charges, expenses, damages and liabilities whatsoever, whether at law or in equity, in any way caused by or arising, directly or indirectly, in respect of any act, deed, matter or thing whatsoever made, done, acquiesced in or omitted in or about or in relation to the execution of each Indemnified Party's respective activities or duties in any way in connection with the CCAA Proceeding and the Chapter 15 Proceedings, including for the avoidance of doubt: (i) the actions Page 140 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;133 of the Court-Appointed Mediator, the Monitors, the CCAA Plan Administrators and the Administrative Coordinator and their respective legal counsel and advisors in connection with the CCAA Proceeding and the Chapter 15 Proceedings, (ii) the business and affairs of Imperial whenever or however conducted, and (iii) any matter or transaction involving Imperial occurring in or in connection with the CCAA Proceeding and the Chapter 15 Proceedings, the CCAA Plan, or the development thereof (other than enforcement of Indemnified Parties' obligations under the CCAA Plan and the Definitive Documents). This indemnity shall survive the resignation or removal of the Indemnified Parties from any role, capacity, engagement, office or position relevant to its activities or duties in connection with the CCAA Plan. To the extent any Indemnified Party is not otherwise compensated by Imperial such Indemnified Party may resort to the Imperial CCAA Plan Administration Reserve for compensation. 18.1.8 Injunctions From and after the Effective Time, all Persons will be permanently and forever barred, estopped, stayed and enjoined from: (a) Commencing, conducting, continuing or making in any manner, directly or indirectly, any action, suit, claim, demand or other proceeding of any nature or kind whatsoever (including any proceeding in a judicial, arbitral, administrative or other forum) against any of the Released Parties, the Monitors, the CCAA Plan Administrators, the Court-Appointed Mediator and the Administrative Coordinator and their respective Representatives with respect to any and all Affected Claims and Released Claims; (b) Enforcing, levying, attaching, collecting or otherwise recovering or enforcing by any manner or means, directly or indirectly, any judgment, award, decree or order against any of the Released Parties, the Monitors, the CCAA Plan Administrators, the Court-Appointed Mediator and the Administrative Coordinator or their respective Representatives, or their respective property with respect to any and all Affected Claims and Released Claims; (c) Commencing, conducting, continuing or making against any other Person in any manner, directly or indirectly, any action, suit, claim, demand or other proceeding of any nature or kind whatsoever (including any proceeding in a judicial, arbitral, administrative or other forum) that relates to an Affected Claim or a Released Claim if such other Person makes a claim or might reasonably be expected to make a claim, in any manner or forum, including by way of contribution or indemnity or other relief, against one or more of the Released Parties, the Monitors, the CCAA Plan Administrators, the Court-Appointed Mediator and the Administrative Coordinator or their respective Representatives, unless such Claim of such other Person is itself an Affected Claim or a Released Claim; (d) Creating, perfecting, asserting or otherwise enforcing, directly or indirectly, any Encumbrance of any kind against the Released Parties, the Monitors, the CCAA Plan Administrators, the Court-Appointed Mediator and the Administrative Coordinator, their respective Representatives or any of their respective property with respect to any and all Affected Claims and Released Claims, except for the exclusions in Article 18, Section 18.1.9 in relation to obligations arising from the Definitive Documents; and Page 141 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 134 (e) Taking any actions to interfere with the implementation or consummation of the CCAA Plan with respect to any and all Released Claims. 18.1.9 Released Parties' Fulfillment of Obligations pursuant to Definitive Documents Notwithstanding any of the provisions herein, the Released Parties are not released from the due performance of their obligations arising from the Definitive Documents, and nothing in this Release shall prevent or restrict any of the Releasors or the CCAA Plan Administrators from pursuing any legal remedies against any of the Released Parties for non-performance of their obligations pursuant to the Definitive Documents, including the covenants of each Tobacco Company, its Parent and the relevant Affiliates within its Tobacco Company Group. 18.1.10 Releases are Final and Binding The releases and injunctions in favour of the Released Parties, the Monitors, the CCAA Plan Administrators, the Court-Appointed Mediator and the Administrative Coordinator and their respective Representatives shall be final and binding on all the Releasors, Released Parties, Affected Creditors and Unaffected Creditors (except to the extent of their Unaffected Claims) as applicable, including any Claims resulting, directly or indirectly, from the consequences and effects relating to the acceptance of the CCAA Plan, the sanction thereof by the CCAA Court, the recognition thereof by the US Bankruptcy Court, or its implementation. The aforesaid final and binding effect of the CCAA Plan on the Releasors, Released Parties, Affected Creditors and Unaffected Creditors (except to the extent of their Unaffected Claims) shall operate for all legal purposes as and from the Effective Time. 18.1.11 CCAA Meeting Orders and Sanction Orders To facilitate the provision of the releases and the granting of the injunctions in favour of the Released Parties, Monitors, the CCAA Plan Administrators, the Court-Appointed Mediator and the Administrative Coordinator: (a) Pursuant to the Meeting Order governing the conduct of the Meeting of the Affected Creditors to consider and vote on the CCAA Plan: (i) Quebec Class Counsel were appointed to act as proxy and vote on behalf of the Quebec Class Action Plaintiffs in respect of the CCAA Plan; (ii) PCC Representative Counsel were appointed to act as proxy and vote on behalf of the Pan-Canadian Claimants in respect of the CCAA Plan; (iii) Knight Class Counsel were appointed to act as proxy and vote on behalf of the Knight Class Action Plaintiffs in respect of the CCAA Plan; and (iv) Counsel for the Tobacco Producers were appointed to act as proxy and vote on behalf of the Tobacco Producers in respect of the CCAA Plan; (b) The Sanction Order: Page 142 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 135 (i) Intentionally deleted; (ii) Confirms that each of (A) the affirmative vote in respect of the CCAA Plan and (B) the signing of the Claimant Contractual Release, by or on behalf of each Claimant, shall be evidence of the consent of the Claimant to the treatment of its Claims for the purposes of Section 5.1(2) and/or Section 19(2) of the CCAA to the extent that they apply; and (iii) Orders that no action, proceeding or enforcement process in any court or tribunal may be commenced or continued against (A) any Released Party, the Monitor, the CCAA Plan Administrator, the Foreign Representative, the Court-Appointed Mediator, the Administrative Coordinator, or (B) any Person who claims or might reasonably be expected to claim in any manner or forum against any Released Party, the Monitor, the CCAA Plan Administrator, the Foreign Representative, the Court- Appointed Mediator, or the Administrative Coordinator, in respect of the Affected Claims and Released Claims without the prior written consent of the Released Party, the Monitor, the CCAA Plan Administrator, the Foreign Representative, the Court-Appointed Mediator, the Administrative Coordinator, as applicable, or leave of the CCAA Court obtained on notice to the Released Party, the Monitor, the CCAA Plan Administrator, the Foreign Representative, the Court-Appointed Mediator and the Administrative Coordinator (as applicable), and the Tobacco Companies, including appropriate injunctive language with respect to same; and (c) Pursuant to the Signing Authorization Order: (i) Quebec Class Counsel were authorized to execute and deliver on behalf of the Quebec Class Action Plaintiffs any and all documents as they consider advisable to give effect to the implementation of the CCAA Plans, including the Claimant Contractual Release, Plan Implementation Date Certificate, Imperial Collateral Agency Agreement and Flow of Funds Agreement; (ii) PCC Representative Counsel were authorized to execute and deliver on behalf of the Pan-Canadian Claimants any and all documents as they consider advisable to give effect to the implementation of the CCAA Plans, including the Claimant Contractual Release, Plan Implementation Date Certificate, Imperial Collateral Agency Agreement and Flow of Funds Agreement; (iii) Knight Class Counsel were authorized to execute and deliver on behalf of the Knight Class Action Plaintiffs any and all documents as they consider advisable to give effect to the implementation of the CCAA Plans, including the Claimant Contractual Release, Plan Implementation Date Certificate, Imperial Collateral Agency Agreement and Flow of Funds Agreement; and (iv) Counsel for the Tobacco Producers were authorized to execute and deliver on behalf of the Tobacco Producers any and all documents as they consider advisable to give effect to the implementation of the CCAA Plans, including the Claimant Page 143 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 136 Contractual Release, Plan Implementation Date Certificate, Imperial Collateral Agency Agreement and Flow of Funds Agreement. 18.1.12 Future Legislation The Released Parties and the Provinces and Territories recognize that a legislature's sovereign power to enact, amend and repeal legislation cannot be fettered. However, in the event that any legislation (including any regulations promulgated thereunder) similar or analogous to the HCCR Legislation may be enacted or amended by a Province or Territory at any time after the Effective Time, the Released Parties and the Provinces and Territories are ad idem that the enactment of such future legislation shall not render unenforceable or otherwise make ineffective any of the terms of the Claimants Contractual Release or of this Article 18. 18.2 Treatment of Miscellaneous Claims 18.2.1 Miscellaneous Claims Fund On the Plan Implementation Date, the Imperial Miscellaneous Claims Fund shall be established. The Trustees shall hold the Imperial Miscellaneous Claims Fund in trust for those Persons who are found by the CCAA Court to be entitled to be paid their Miscellaneous Claim pursuant to the CCAA Plan. In aggregate, the Imperial Miscellaneous Claims Fund, RBH Miscellaneous Claims Fund and JTIM Miscellaneous Claims Fund shall total $25.0 million ("Miscellaneous Claims Amount"). The proportionate shares of the aggregate amount of $25.0 million which shall be deposited into the Imperial Miscellaneous Claims Fund, RBH Miscellaneous Claims Fund and JTIM Miscellaneous Claims Fund from their respective Upfront Contributions shall be equal to the proportionate shares of the Upfront Contributions made by Imperial, RBH and JTIM. The Miscellaneous Claims Amount, and interest accrued thereon, shall be held in the Imperial Miscellaneous Claims Fund, RBH Miscellaneous Claims Fund and JTIM Miscellaneous Claims Fund for a period of three years from the Effective Time, or for such other period of time as the CCAA Plan Administrators are of the view is necessary and appropriate to permit the completion of the adjudication of any Miscellaneous Claims ("Miscellaneous Claims Fund Period"). The Tobacco Companies may unanimously elect to increase the Miscellaneous Claims Amount from $25.0 million to $60.0 million provided that: (a) The $35.0 million top-up of the Miscellaneous Claims Amount shall be paid by the Tobacco Companies and shall be on top of the $32.5 billion Global Settlement Amount; (b) The Tobacco Companies are in unanimous agreement regarding how they shall apportion payment of the $35.0 million among themselves and the source of the top-up funds; and (c) The sourcing of the additional sum of $35.0 million shall not affect the amount nor the timing of the payments of the Upfront Contributions and the Global Settlement Amount. If the Tobacco Companies make such election as aforesaid, this Section 18.2.1 shall be deemed to stipulate that the Miscellaneous Claims Amount is $60.0 million. Page 144 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;137 18.2.2 Determination of Miscellaneous Claims The determination of all Miscellaneous Claims shall be governed by this Section 18.2 and the Claims Procedure Order, the Meeting Order and any other further Order of the CCAA Court, as applicable. A Putative Miscellaneous Claimant shall not be permitted to commence a proceeding in any other forum except the CCAA Court with leave and, if any such proceeding is commenced, it shall be a nullity. 18.2.3 Leave required from CCAA Court to bring a Miscellaneous Claim Proceeding Except for (i) an application for leave to commence a proceeding brought in the CCAA Court pursuant to this Section, and (ii) any subsequent proceeding commenced with leave of the CCAA Court, any proceeding commenced in any court relating to a Miscellaneous Claim shall be a nullity. A Putative Miscellaneous Claimant shall bring an application to the CCAA Court seeking leave to commence a proceeding relating to the Miscellaneous Claim. On the application for leave, the Putative Miscellaneous Claimant shall serve on Imperial and file with the CCAA Court: (a) An affidavit setting out a concise statement of the material facts upon which the Putative Miscellaneous Claimant intends to rely; and (b) An affidavit of documents disclosing, to the full extent of the Putative Miscellaneous Claimant's knowledge, information and belief, all documents relevant to any matter in issue in the proceeding relating to the Miscellaneous Claim that are or have been in the Putative Miscellaneous Claimant's possession, control or power. On the application for leave, Imperial may serve on the Putative Miscellaneous Claimant and file an affidavit setting out a concise statement of the material facts on which Imperial intends to rely for the defence of the Miscellaneous Claim, but is not required to do so. The CCAA Court shall not grant leave unless it finds that: (a) The application for leave has been brought before the CCAA Court either prior to or no later than two years after the issuance of the Sanction Order; (b) The Miscellaneous Claim was not fully, finally, irrevocably and unconditionally released and forever discharged, and permanently barred and enjoined pursuant to the terms of the CCAA Plan, Claims Procedure Order, Sanction Order, the Claimant Contractual Release and/or any other orders made in the CCAA Proceeding; (c) The Miscellaneous Claim is being brought in good faith; and (d) There is a reasonable possibility that the Miscellaneous Claim will be resolved in the Putative Miscellaneous Claimant's favour. Page 145 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 138 The Putative Miscellaneous Claimant shall bear the onus of establishing that leave should be granted. If leave is granted, the CCAA Court shall have exclusive jurisdiction to adjudicate and determine the proceeding relating to the Miscellaneous Claim on its merits. Notwithstanding the foregoing, the CCAA Court in its discretion may decide how the Miscellaneous Claim will be heard and determined. Either the Putative Miscellaneous Claimant or Imperial may appeal from the decision of the CCAA Court on the application for leave or, if leave is granted, from any order or decision of the CCAA Court made in the proceeding relating to the Miscellaneous Claim, in accordance with Sections 13, 14 and 15 of the CCAA. Both the Putative Miscellaneous Claimant and Imperial shall bear their own costs of the application for leave and any appeal from the decision of the CCAA Court on the application for leave. If by final decision of the CCAA Court leave is not granted, and any appeal from such decision is dismissed, the Putative Miscellaneous Claimant shall be permanently and forever barred, estopped, stayed and enjoined from commencing any proceeding in any court relating to or arising from the Miscellaneous Claim. 18.2.4 Payment from Miscellaneous Claims Fund Any judgments or awards made, or other amounts ordered to be paid in regard to Miscellaneous Claims shall be paid solely from the Imperial Miscellaneous Claims Fund, RBH Miscellaneous Claims Fund and JTIM Miscellaneous Claims Fund. 18.2.5 Distribution of any Residual Monies from Miscellaneous Claims Fund After the expiry of the Miscellaneous Claims Fund Period, to the extent that there remain any residual funds in the Imperial Miscellaneous Claims Fund, RBH Miscellaneous Claims Fund and/or JTIM Miscellaneous Claims Fund after the payment of all judgments, awards and any other amounts ordered to be paid in regard to proven Miscellaneous Claims, any such residual funds shall be apportioned among the Provinces and Territories in accordance with the percentages set out in the table in Article 16, Section 16.3. 18.2.6 Sole Recourse for Miscellaneous Claims All Putative Miscellaneous Claimants shall only have recourse to the Imperial Miscellaneous Claims Fund, RBH Miscellaneous Claims Fund and JTIM Miscellaneous Claims Fund in regard to any Miscellaneous Claims and shall have no recourse in relation to any Miscellaneous Claims as against the Released Parties, the Claimants or their Representatives, or any other funds paid, held or administered pursuant to the CCAA Plan and all other Definitive Documents. Page 146 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 139 18.3 Disposition of Pending Proceedings 18.3.1 Termination of Pending Litigation other than Quebec Class Actions As soon as possible after the Plan Implementation Date and by no later than a date to be set by the Court-Appointed Mediator and the Monitors, the Parties shall take all steps and actions that are necessary and appropriate to dismiss with prejudice and without costs to any party or counsel the following proceedings pending in courts in the Provinces and Territories against the Tobacco Companies, certain members of their respective Tobacco Company Groups and the Canadian Tobacco Manufacturers' Council ("Pending Litigation"): (a) The actions which the Provinces commenced pursuant to the HCCR Legislation claiming the recovery of expenditures for Health Care Benefits provided for Insured Persons resulting from Tobacco-related Disease or the risk of Tobacco-related Disease caused by the Tobacco Companies' tobacco-related wrongs, including any related motions, applications, leave applications or appeals, that are listed in Schedule "U" to the CCAA Plan; (b) The Knight Class Action; (c) The actions commenced by Individuals under the class proceedings legislation in British Columbia (other than the Knight Class Action), Alberta, Saskatchewan, Manitoba, Ontario, Nova Scotia, and Newfoundland and Labrador, that are listed in Schedule "V" to the CCAA Plan; (d) The Tobacco Producers' Actions; and (e) Any action, other than the Quebec Class Actions, regardless of whether the statement of claim was served, commenced by Individuals in Ontario, Quebec and Nova Scotia, or any other Province or Territory relating to Tobacco Claims or the subject matter of the CCAA Plan, that are listed in Schedule "W" to the CCAA Plan. Imperial and the Claimants consented to the inclusion of orders in the Sanction Order providing that: (a) Effective from Plan Implementation Date, all parties to the Pending Litigation, including each plaintiff, class representative, class member and defendant therein, shall be deemed to have given all consents necessary to effect the termination with prejudice and without costs of the Pending Litigation, (b) The Sanction Order shall have full force and effect in all Provinces and Territories, the United States and elsewhere, and as against all Persons against whom it may apply; and (c) Each applicable court in the Provinces and Territories in which the Pending Litigation was commenced is requested to: Page 147 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 140 (i) Aid, recognize and assist the CCAA Court to confirm that, effective as and from the Plan Implementation Date, the CCAA Plan has fully and finally resolved and definitively settled the Pending Litigation, (ii) Provide such assistance to Imperial and its CCAA Plan Administrator, as an officer of the CCAA Court, as may be necessary or desirable to give effect to the Sanction Order or to assist Imperial and its CCAA Plan Administrator in carrying out the terms of the Sanction Order and CCAA Plan, and (iii) Issue such orders as may be necessary to terminate all of the Pending Litigation by a with prejudice dismissal without costs. Such dismissals shall be effected by the filing of the appropriate documents with each applicable court in each jurisdiction. 18.3.2 Disposition of Quebec Class Actions As soon as possible after the Plan Implementation Date, Imperial and the QCAPs shall take all steps and actions that are necessary and appropriate to, if applicable, dismiss with prejudice and without costs to any party or counsel any leave applications or appeals from the judgments in the Quebec Class Actions or any related motions pending in the Quebec Superior Court, the Court of Appeal of Quebec and/or the Supreme Court of Canada. After the QCAP Claims Process has ended and the Eligible Blais Class Members have been paid their Compensation Payments, Imperial and the QCAPs shall consent to motions seeking the Closing Judgment to be brought in the Quebec Superior Court by the Quebec Class Counsel in the Blais Class Action and the Létourneau Class Action. Imperial and the QCAPs consented to the inclusion in the Sanction Order of orders providing that: (a) The Blais Judgment and the Létourneau Judgment are fully and finally satisfied, resolved, compromised and settled; (b) The Sanction Order shall have full force and effect in Quebec as against all Persons against whom it may apply; and (c) The Quebec Superior Court is requested to: (i) Aid, recognize and assist the CCAA Court to confirm that, effective as and from the Plan Implementation Date, the CCAA Plan has fully and finally resolved and definitively settled the Quebec Class Actions; (ii) Provide such assistance to Imperial and the CCAA Plan Administrator, as an officer of the CCAA Court, as may be necessary or desirable to give effect to the Sanction Order or to assist Imperial and its CCAA Plan Administrator in carrying out the terms of the CCAA Plan Sanction Order and the CCAA Plan; and (iii) Upon the completion of the QCAP Claims Process and the payment of Compensation Payments thereunder, issue such orders, including the Closing Page 148 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;141 Judgment, as may be necessary to terminate with prejudice and without costs the Quebec Class Actions. ARTICLE 19. COURT SANCTION, CONDITIONS PRECEDENT AND CCAA PLAN IMPLEMENTATION 19.1 Application for Sanction Order After the CCAA Plan was approved by the Required Majority of the Affected Creditor Class at the Meeting, the Court-Appointed Mediator and the Monitor applied for the Sanction Order in a hearing that was conducted by the CCAA Court on January 29, 30 and 31 and March 3, 2025. 19.2 Sanction Order On March 6, 2025, the CCAA Court granted the Sanction Order that, among other things: (a) Ordered that: (i) the CCAA Plan has been approved by the Required Majority of the Affected Creditor Class in conformity with the CCAA; (ii) the activities of Imperial and the Monitor have been in compliance with the provisions of the CCAA and the Orders of the CCAA Court made in this CCAA Proceeding in all respects; (iii) neither Imperial nor the Monitor has done or purported to do anything that is not authorized by the CCAA; and (iv) the CCAA Plan and the transactions contemplated thereby are fair and reasonable; (b) Ordered that the CCAA Plan and all associated steps, compromises, transactions, arrangements, releases and reorganizations effected thereby are sanctioned and approved, and at the Effective Time will be binding and effective upon and with respect to Imperial, all Affected Creditors, the Released Parties and all other Persons named or referred to in, or subject to, the CCAA Plan or the Sanction Order; (c) Confirmed that the CCAA Court is satisfied that: (i) the hearing regarding the Sanction Hearing was open to all of the Affected Creditors and all other Persons, including Putative Miscellaneous Claimants, with an interest in Imperial and that such Affected Creditors and other Persons were permitted to be heard at the Sanction Hearing; and (ii) all of the Affected Creditors and all other Persons on the Common Service List were given adequate notice thereof; (d) Approved and authorized the Restructuring Steps; (e) Approved the Quebec Administration Plan; (f) Approved the PCC Compensation Plan; (g) Approved the appointment of the Monitor as the CCAA Plan Administrator as set out in the CCAA Plan Administrator Appointment Order; (h) Approved the appointment of the Court-Appointed Mediator to provide services with respect to the implementation of the CCAA Plan and perform such other functions as may be requested by the CCAA Plan Administrator or the CCAA Court; Page 149 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 142 (i) Approved the appointment of Epiq as the Claims Administrator; (j) Approved the appointment of Daniel Shapiro, K.C. as the Administrative Coordinator; (k) Intentionally deleted; (l) Ordered that any Affected Claim for which a Miscellaneous Claimant Proof of Claim or Notice of Dispute of Negative Notice Claim has not been filed by the Miscellaneous Claims Bar Date or the Negative Notice Bar Date, as applicable, in accordance with the Claims Procedure Order is forever barred and extinguished, and all such Affected Claims are released and discharged; (m) Ordered that, on a date to be agreed between Imperial and the CCAA Plan Administrators, the Alternative Products Business transferred by Imperial to Newco vests absolutely in Newco in accordance with Article 4, Section 4.1 of the CCAA Plan; (n) Ordered that, as of the Effective Time, any and all Released Claims are and are deemed to be fully, finally, irrevocably and forever compromised, released, discharged and barred, and the ability of any Person to proceed against any of the Released Parties in respect of or relating to any Released Claims, whether directly, indirectly, derivatively or otherwise is forever barred, estopped, stayed and enjoined, and all proceedings with respect to, in connection with or relating to such Released Claims are permanently stayed, subject only to the right of the Affected Creditors to receive distributions pursuant to the CCAA Plan in respect of their Affected Claims and to exercise their rights under the CCAA Plan; (o) Ordered that, as of the Effective Time, no action, proceeding or enforcement process in any court or tribunal may be commenced or continued against any Released Party, or any Person who claims or might reasonably be expected to claim in any manner or forum against any Released Party, in respect of the Released Claims without the prior written consent of the Released Party or leave of the CCAA Court obtained on notice to the Released Party and the Tobacco Companies, including appropriate injunctive language with respect to same; (p) Authorized and approved the releases and injunctions set forth in Article 18, Sections 18.1.1 to 18.1.10 herein and order that such releases and injunctions shall become effective at the Effective Time; (q) Intentionally deleted; (r) Confirmed that each of (i) the affirmative vote in respect of the CCAA Plan and (ii) the signing of the Claimant Contractual Release, by or on behalf of each Claimant, shall be evidence of the consent of the Claimant to the treatment of its Claims for the purposes of Section 5.1(2) and/or Section 19(2) of the CCAA to the extent that they apply; (s) Granted the Monitor, in addition to its rights and obligation under the CCAA, the powers, duties and protections contemplated by and required under the CCAA Plan and authorize and direct the Monitor to perform its duties and fulfil its obligations under the CCAA Plan Page 150 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 143 as the CCAA Plan Administrator for Imperial to facilitate the implementation of the CCAA Plan; (t) Authorized Imperial and FTI, in its capacity as the Monitor, the Foreign Representative, or the CCAA Plan Administrator, to take all steps and actions, and to do all things, necessary or appropriate to implement the CCAA Plan in accordance with and subject to its terms and conditions, and to enter into, execute, deliver, complete, implement and consummate all of the steps, transactions, distributions, payments, deliveries, allocation, instruments and agreements contemplated by, and subject to the terms and conditions of, the CCAA Plan; (u) Ordered that in no circumstance will the Monitor have any liability for any of Imperial's tax or other liabilities regardless of how or when such liability may have arisen; (v) Approved the form of the Monitor's Plan Implementation Date Certificate, and ordered that the Monitor, in its capacity as Monitor, following the fulfilment or waiver of the conditions precedent to implementation of the CCAA Plan as set out in Article 19, Sections 19.3 and 19.4 of the CCAA Plan, shall deliver the Monitor's Plan Implementation Date Certificate to Imperial and serve a copy thereof on the Common Service List; (w) Ordered that upon completion by FTI of its duties as the Monitor and the CCAA Plan Administrator in respect of Imperial pursuant to the CCAA and any Order of the CCAA Court made in connection with the CCAA Proceeding or the CCAA Plan, FTI may file with the CCAA Court a certificate ("Certificate of Plan Completion") stating that all of its duties in respect of Imperial pursuant to the CCAA, the CCAA Plan and any Orders of the CCAA Court in respect thereof, have been completed and thereupon, FTI shall be deemed to be discharged from its duties as the Monitor and as the CCAA Plan Administrator and released of all claims relating to its activities as the Monitor and as the CCAA Plan Administrator; (x) Approved the form of the Certificate of Plan Completion, and ordered that FTI, in its capacities as the Monitor and the CCAA Plan Administrator has completed its duties to fully and finally effect all distributions, disbursements and payments in accordance with the CCAA Plan, shall file the Certificate of Plan Completion with the CCAA Court; (y) Ordered that, in carrying out the terms of the Sanction Order and the CCAA Plan, (i) FTI, in its capacities as the Monitor and the CCAA Plan Administrator, shall benefit from all the protections given to it by the CCAA, the Initial Order and any other Order in the CCAA Proceeding, and as an officer of the CCAA Court, (ii) FTI shall incur no liability or obligation as a result of carrying out the provisions of the Sanction Order and/or CCAA Plan, and (iii) FTI shall be entitled to rely on the books and records of Imperial and any information provided by Imperial without independent investigation and shall not be liable for any claims or damages resulting from any errors or omissions in such books, records or information; (z) Ordered that each Putative Miscellaneous Claimant will be limited to recovering from the Imperial Miscellaneous Claims Fund, RBH Miscellaneous Claims Fund and JTIM Miscellaneous Claims Fund in respect of all Miscellaneous Claims in accordance with the Page 151 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 144 CCAA Plan and any other Definitive Documents, and such Putative Miscellaneous Claimant will have no right to and shall not make any claim against or seek any recovery from any Released Party in respect of such Miscellaneous Claim; (aa) Ordered that each of the Sales and Excise Tax Charge and Directors' Charge will be terminated, discharged, expunged and released at the applicable time set out in the Sanction Order upon receipt by Imperial of an acknowledgement of payment in full and in the appropriate currency of the claims secured thereby; (bb) Approved the Imperial CCAA Plan Administration Reserve; (cc) Approved the Imperial PCC Compensation Plan Reserve; (dd) Ordered that, notwithstanding: (i) the pendency of the CCAA Proceeding or the Chapter 15 Proceedings; (ii) any applications for a bankruptcy, receivership or other order now or hereafter issued pursuant to the BIA, the CCAA, the US Bankruptcy Code or otherwise in respect of Imperial and any bankruptcy, receivership or other order issued pursuant to any such applications; and (iii) any assignment in bankruptcy made or deemed to be made in respect of Imperial, the transactions contemplated by the CCAA Plan shall be binding on any trustee in bankruptcy or receiver that may be appointed in respect Imperial or its assets and shall not be void or voidable by creditors of Imperial, nor shall the CCAA Plan or the payments and distributions contemplated pursuant thereto constitute nor be deemed to constitute a fraudulent preference, assignment, fraudulent conveyance, transfer at undervalue, or other reviewable transaction under the BIA, CCAA or any other applicable federal or provincial legislation, nor shall the CCAA Plan constitute oppressive or unfairly prejudicial conduct pursuant to any applicable federal or provincial legislation; (ee) Ordered that, subject to the performance by Imperial of its obligations under the CCAA Plan, all obligations, contracts, leases, agreements and other arrangements to which (i) Imperial is a party at the Effective Time or (ii) Newco becomes a party on a date to be agreed between Imperial and the CCAA Plan Administrators as a result of the transfer of the Alternative Products Business to Newco in accordance with the terms of Article 4, Section 4.1, and that have not been terminated or disclaimed pursuant to the applicable paragraph of the Initial Order and related provision of the CCAA will be and remain in full force and effect, unamended as of the Effective Time, and no Person who is a party to any such obligation, contract, lease, agreement or other arrangement shall at or following the Effective Time accelerate, terminate, refuse to renew, rescind, refuse to perform or otherwise repudiate its obligations thereunder, or enforce or exercise (or purport to enforce or exercise) any right or remedy (including any right of set-off, dilution or other remedy) or make any demand under or in respect of any such arrangement and no automatic termination will have any validity or effect, by reason of: (i) any event that occurred at or prior to the Effective Time and is not continuing thereafter, or which is or continues to be suspended or waived under the CCAA Plan, that would have entitled such Person to enforce those rights or remedies (including defaults or events or default arising as a result of the insolvency of Imperial); Page 152 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;145 (ii) the insolvency of Imperial or the fact that Imperial sought or obtained relief under the CCAA or the US Bankruptcy Code; (iii) any compromises or arrangements effected pursuant to the CCAA Plan, or any action taken or transaction effected pursuant to the CCAA Plan; or (iv) the fact that Imperial has sought or obtained relief or taken steps as part of the CCAA Proceedings or the Chapter 15 Proceedings. (ff) Approved all conduct of the Directors of Imperial during the CCAA Proceeding and the Chapter 15 Proceedings; (gg) Approved all conduct of the Monitor and the Monitor's Representatives in relation to Imperial and its Tobacco Company Group and barred all claims against them arising from or relating to the services provided to Imperial and its Tobacco Company Group up to and including the date of the Sanction Order; (hh) Ordered that, in regard to the services that it provides after the date of the Sanction Order, FTI, whether in its capacity as the Monitor, the CCAA Plan Administrator and/or the Foreign Representative, shall have the benefit of all the protections afforded to the Monitors as officers of the CCAA Court and by the CCAA Plans, the CCAA, any other applicable legislation and any Orders made in the CCAA Proceedings or the Chapter 15 Proceedings. For greater certainty, FTI, whether in its capacity as the Monitor, the CCAA Plan Administrator and/or the Foreign Representative, shall not be responsible or liable for any obligations of the Tobacco Companies. None of the Monitor or its respective Affiliates, shareholders, Affiliates' shareholders, employees, advisors, legal counsel, representatives or agents shall incur any personal liability whatsoever whether on their own part or in respect of any failure on the part of any Tobacco Company to observe, perform or comply with any of its obligations under its CCAA Plan or any other Definitive Document; (ii) Approved all conduct of the Court-Appointed Mediator and the Court-Appointed Mediator's Representatives in relation to Imperial and its Tobacco Company Group and barred all claims against them arising from or relating to the services provided during the pendency of the Court-supervised mediation up to and including the date of the Sanction Order; (jj) Ordered that in the event that the Court-Appointed Mediator provides any services after the date of the Sanction Order, as requested by either the CCAA Plan Administrators or the CCAA Court, and approved by the CCAA Court, the Court-Appointed Mediator shall have the benefit of all the protections afforded to the Court-Appointed Mediator as an officer of the CCAA Court and by the CCAA Plans, the CCAA, any other applicable legislation, including pursuant to Section 142 of the Courts of Justice Act, R.S.O. 1990, c. C.43, and any Orders made in the CCAA Proceedings, including the orders appointing the Court-Appointed Mediator. In particular, the Court-Appointed Mediator shall not be liable to any Party, participant in the mediation, or any other Person, for any act or omission in connection with the mediation process and/or in connection with any services provided after date of the Sanction Order, and shall have the immunity of a Judge of a Superior Court Page 153 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 146 in Canada. For greater certainty, the Court-Appointed Mediator shall not be responsible or liable for any obligations of the Tobacco Companies. None of the Court-Appointed Mediator's heirs, successors, assigns, representatives, advisors, legal counsel, consultants or agents shall incur any personal liability whatsoever whether on their own part or in respect of any failure on the part of any Tobacco Company to observe, perform or comply with any of its obligations under its CCAA Plan or any other Definitive Document; (kk) Ordered that, in regard to the services that the Administrative Coordinator provides after the date of the Sanction Order, the Administrative Coordinator shall have the benefit of all the protections afforded to him as an officer of the CCAA Court and by the CCAA Plans, the CCAA, any other applicable legislation and any Orders made in the CCAA Proceedings. For greater certainty, the Administrative Coordinator shall not be responsible or liable for any obligations of the Tobacco Companies. None of the Administrative Coordinator's heirs, successors, assigns, representatives, advisors, legal counsel, consultants or agents shall incur any personal liability whatsoever whether on their own part or in respect of any failure on the part of any Tobacco Company to observe, perform or comply with any of its obligations under its CCAA Plan or any other Definitive Document; (ll) Authorized Imperial to seek an order of any court of competent jurisdiction to recognize the CCAA Plan and the Sanction Order and to confirm the CCAA Plan and the Sanction Order as binding and effective in any appropriate foreign jurisdiction, including in the Chapter 15 Proceedings; (mm) Ordered that any obligation of Imperial to provide financial reporting pursuant to any Order or agreement shall cease at the Effective Time and be replaced with the obligations set forth in Article 10, Section 10.1 to Section 10.10 of the CCAA Plan; (nn) Ordered that the CCAA stay of proceedings provided for in the Initial Order shall be extended until the Effective Time; and (oo) Ordered that Imperial, the Court-Appointed Mediator or FTI, whether in its capacity as the Monitor, the CCAA Plan Administrator and/or the Foreign Representative, may apply to the CCAA Court for advice and direction in respect of any matters arising from or in relation to the CCAA Plan. 19.3 Conditions Precedent to Implementation of CCAA Plan The implementation of the CCAA Plan shall be conditional upon the satisfaction, prior to or at the Effective Time, of the following conditions precedent ("Plan Implementation Conditions"): (a) The CCAA Plan will have been approved by the Required Majority of the Affected Creditors at the Meeting; (b) The CCAA Plans of RBH and JTIM will have been approved by the Required Majority of the Affected Creditors of RBH and JTIM at the Meetings in respect of the CCAA Plans of RBH and JTIM; Page 154 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 147 (c) The Sanction Order will have been granted by the CCAA Court, consistent with the terms of Article 19, Section 19.2 herein, and will have become a final Order; (d) The Sanction Orders in respect of the CCAA Plans of RBH and JTIM will have been granted by the CCAA Court and will have become final Orders; (e) All applicable appeal periods in respect of the Sanction Order will have expired and any appeals or motions for leave to appeal therefrom will have been finally disposed of by the applicable appellate court; (f) The Sanction Recognition Order shall have been entered by the US Bankruptcy Court; (g) The Plan Implementation Date will have occurred by no later than a date to be set by the Court-Appointed Mediator and the Monitors, unless otherwise ordered by the CCAA Court; (h) The Effective Time of the CCAA Plans of RBH and JTIM shall become effective at the same time or immediately prior or immediately subsequent to the Effective Time of the CCAA Plan; (i) Intentionally deleted; (j) Imperial will have established the Imperial Global Settlement Trust Account, the Imperial PCC Trust Account, the Imperial Cy-près Trust Account, the Imperial QCAP Trust Account, Imperial PCC Compensation Plan Reserve Account, Imperial Miscellaneous Claims Fund and the Imperial CCAA Plan Administration Reserve Account; (k) ITCAN will have established the Imperial Supplemental Trust Account; (l) Imperial shall have deposited its share of the Upfront Contributions into the Imperial Global Settlement Trust Account; (m) The amount of $25.0 million in respect of the CCAA Plan of each Tobacco Company, in aggregate totalling $75.0 million, shall have been paid out of the Upfront Contributions or any other Contribution made as of the Plan Implementation Date and deposited into the Imperial CCAA Plan Administration Reserve Account, RBH CCAA Plan Administration Reserve Account and JTIM CCAA Plan Administration Reserve Account to establish, respectively, the Imperial CCAA Plan Administration Reserve, RBH CCAA Plan Administration Reserve and JTIM CCAA Plan Administration Reserve; (n) The aggregate amount of $5.0 million shall have been paid out of the Upfront Contributions and deposited into the Imperial PCC Compensation Plan Reserve Account, RBH PCC Compensation Plan Reserve Account and JTIM PCC Compensation Plan Reserve Account to establish, respectively, the Imperial PCC Compensation Plan Reserve, RBH PCC Compensation Plan Reserve and JTIM PCC Compensation Plan Reserve; Page 155 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 148 (o) The aggregate amount of $25.0 million shall have been paid out of the Upfront Contributions and deposited into the Imperial Miscellaneous Claims Fund, the RBH Miscellaneous Claims Fund and the JTIM Miscellaneous Claims Fund; (p) Imperial's and RBH's Cash Security Deposits will have been ordered by the Court of Appeal of Quebec to be released from suretyship and deposited into the Imperial Global Settlement Trust Account and RBH Global Settlement Trust Account, provided that the Minister of Finance of Quebec may make such deposits of the Cash Security Deposits in whole or in part as soon as practicable after the Plan Implementation Date; (q) All relevant Persons will have executed, delivered and filed all documents and other instruments that, in the opinion of the Court-Appointed Mediator and the Monitor, acting reasonably, are necessary to implement the provisions of the CCAA Plan and the Sanction Order, including the Contribution Security Agreement and the Deed of Movable Hypothec; (r) The Claimant Contractual Release will have been executed, delivered and become effective in accordance with its terms, subject only to the occurrence of the Plan Implementation Date, on terms satisfactory to each Claimant, to the extent that Imperial and such Claimant are parties receiving or giving the applicable releases; (s) No action or proceeding will be pending by any third party to enjoin or prohibit the implementation of the CCAA Plan and the transactions contemplated by the CCAA Plan; (t) There shall not exist or have occurred any Material Adverse Effect upon Imperial; (u) Except as expressly set out in the CCAA Plan, Imperial shall not have (i) issued or authorized the issuance of any shares, notes, options, warrants or other securities of any kind, (ii) become subject to any Encumbrance with respect to its assets or property, (iii) acquired any assets or become liable to pay any Indebtedness or liability of any kind (other than as expressly set out in the CCAA Plan), or (iv) entered into any agreement for any of the foregoing; and (v) All applicable approvals and orders of, and all applicable submissions and filings with, Governmental Authorities having jurisdiction for the completion of the steps and transactions contemplated by the CCAA Plan (including the steps and transactions which are Plan Implementation Conditions) will have been obtained or made, as the case may be, in each case to the extent deemed necessary or advisable by the Court-Appointed Mediator and the Monitor, in form and substance satisfactory to the Court-Appointed Mediator and the Monitor. Except in the case of Article 19, Sections 19.3 (a), (b), (c), (d), (f) and (h) which may not be waived, the Plan Implementation Conditions may be waived in whole or in part only with the consent, in writing, of the Court-Appointed Mediator and the Monitor provided that the waiver relates to matters of a non-material nature. In the event that the Court-Appointed Mediator and the Monitor seek to waive any material Plan Implementation Conditions, they shall provide notice to the Provinces and Territories, the Impacted Claimants and the Tobacco Company and will bring the issue before the CCAA Court for determination. In respect of Article 19, Section 19.3(r), the Page 156 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;149 obligation of the Claimants to execute the Claimant Contractual Release cannot be waived without Imperial's consent. 19.4 Monitor's Certificate – Plan Implementation As soon as practicable following fulfilment of the Plan Implementation Conditions, the Monitor shall deliver to Imperial, serve on the Common Service List, post on the Monitor's website and file with the CCAA Court a certificate confirming that the Plan Implementation Date has occurred ("Plan Implementation Date Certificate"). ARTICLE 20. GENERAL 20.1 Binding Effect At the Effective Time, the CCAA Plan will become effective and binding on and enure to the benefit of the Released Parties and any other Person named or referred to in or subject to the CCAA Plan and their Representatives. Without limiting the generality of the foregoing, at the Effective Time: (a) The treatment of Affected Claims, Released Claims and Miscellaneous Claims under the CCAA Plan will be final and binding for all purposes and enure to the benefit of the Released Parties, the Affected Creditors and all other Persons named or referred to in or subject to the CCAA Plan and their Representatives; (b) All Affected Claims shall be and shall be deemed to be forever compromised, released, discharged and barred, excepting only the obligations to make distributions in respect of such Affected Claims in the manner and to the extent provided for in the CCAA Plan; (c) All Released Claims will be forever discharged, released, enjoined and barred; (d) Each Affected Creditor and each Person holding a Released Claim or Miscellaneous Claim and all other Persons named or referred to in or subject to the CCAA Plan will be deemed to have: (i) Consented and agreed to all of the provisions of the CCAA Plan in its entirety, (ii) Executed and delivered to Imperial and to the other Released Parties, as applicable, all consents, releases, directions, assignments and waivers, statutory or otherwise, required to implement and carry out the CCAA Plan in its entirety, (iii) Waived any default by or rescinded any demand for payment against Imperial that has occurred on or prior to the Effective Time pursuant to, based on, or as a result of any provision, express or implied, in any agreement or other arrangement, written or oral, existing between such Affected Creditor, Person or Putative Miscellaneous Claimant and Imperial with respect to an Affected Claim, Released Claim or Miscellaneous Claim (as the case may be), and Page 157 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 150 (iv) Agreed that, if there is any conflict between the provisions, express or implied, of any agreement or other arrangement, written or oral, existing as at the moment before the Effective Time between an Affected Creditor or a Person holding a Released Claim or Miscellaneous Claim and Imperial with respect to an Affected Claim, Released Claim or Miscellaneous Claim (as the case may be) and the provisions of the CCAA Plan, then the provisions of the CCAA Plan take precedence and priority and the provisions of such agreement or other arrangement are amended accordingly; and (e) Each Person named or referred to in, or subject to, the CCAA Plan shall be deemed to have received from the Released Parties, all statements, notices, declarations and notifications, statutory or otherwise, required to implement and carry out the CCAA Plan in its entirety. 20.2 Deeming Provisions In the CCAA Plan, the deeming provisions are not rebuttable and are conclusive and irrevocable. 20.3 Interest and Fees Interest shall not accrue or be paid on Affected Claims after the Filing Date, and no holder of an Affected Claim, Released Claim or Miscellaneous Claim shall be entitled to interest accruing nor to fees and expenses incurred in respect of an Affected Claim, Released Claim or Miscellaneous Claim on or after the Filing Date, and any Claim in respect of interest accruing or fees and expenses incurred on or after the Filing Date shall be deemed to be forever extinguished and released. All investment income earned from time to time with respect to and on account of the monies held in the Imperial Global Settlement Trust Account, Imperial PCC Trust Account, Imperial QCAP Trust Account, Imperial Cy-près Trust Account, Imperial Miscellaneous Claims Fund, Imperial CCAA Plan Administration Reserve Account and Imperial PCC Compensation Plan Reserve Account shall enure to the exclusive benefit of the beneficiaries of the aforesaid trust accounts or be accumulated or capitalized therein and shall not in any circumstances be applied to reduce the aggregate amount of the Global Settlement Amount that the Tobacco Companies are obligated to pay pursuant to the terms of their respective CCAA Plans. Any and all investment income accrued on the Reserved Amounts in the Imperial Supplemental Trust Account, RBH Supplemental Trust Account and JTIM Supplemental Trust Account shall be applied to reduce the aggregate amount of the Global Settlement Amount that the Tobacco Companies are obligated to pay pursuant to the terms of their respective CCAA Plan when and to the extent that such investment income is transferred to the Imperial Global Settlement Trust Account, RBH Global Settlement Trust Account and JTIM Global Settlement Trust Account. 20.4 Modification of the CCAA Plan (a) The Court-Appointed Mediator and the Monitor reserve the right, at any time and from time to time (including prior to, at or following the Meeting), to amend, restate, modify and/or supplement the CCAA Plan, provided that any such amendment, restatement, modification or supplement is contained in a notice which is filed with the CCAA Court and posted on the Monitor's website and, Page 158 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 151 (i) If made prior to the Meeting Order, such amendment, restatement, modification or supplement is communicated to the Affected Creditors and Imperial; or (ii) If made following the Meeting Order, such amendment, restatement, modification or supplement shall be subject to approval by the CCAA Court following notice to the Affected Creditors and Imperial. (b) Notwithstanding Article 20, Section 20.4(a), any amendment, restatement, modification or supplement to the CCAA Plan may be made by the Court-Appointed Mediator and the Monitor, at any time and from time to time, provided that it: (i) concerns a matter which is of an administrative nature required to better give effect to the implementation of the CCAA Plan; or (ii) is to cure any errors, omissions or ambiguities, and in either case is not materially adverse to the financial or economic interests of the Affected Creditors or the Unaffected Creditors. (c) Any amended, restated, modified or supplementary CCAA Plan filed with the CCAA Court and, if required by this Section, approved by the CCAA Court, will for all purposes be and be deemed to be a part of and incorporated in the CCAA Plan. 20.5 Paramountcy From and after the Effective Time, any conflict between any of: (a) The CCAA Plan; (b) The Sanction Order; and/or (c) The covenants, warranties, representations, terms, conditions, provisions or obligations, express or implied, of any contract, mortgage, security agreement, indenture, trust indenture, note, loan agreement, commitment letter, agreement for sale, lease or other agreement, written or oral and any and all amendments or supplements thereto existing between one or more of the Affected Creditors and Imperial as at the moment before the Effective Time, will be deemed to be governed by the terms, conditions and provisions of the Sanction Order, which will take precedence and priority. 20.6 Severability of CCAA Plan Provisions If, prior to the Plan Implementation Date, any term or provision of the CCAA Plan is held by the CCAA Court to be invalid, void or unenforceable, the CCAA Court, at the request of the Court- Appointed Mediator, the Monitor or Imperial, will have the power to either: (a) sever such term or provision from the balance of the CCAA Plan and provide the Court-Appointed Mediator and the Monitor with the option to proceed with the implementation of the balance of the CCAA Plan, or (b) alter and interpret such term or provision to make it valid or enforceable to the maximum extent practicable, consistent with the original purpose of the term or provision held to be invalid, void or unenforceable, and such term or provision will then be applicable as so altered or interpreted. Notwithstanding any such holding, alteration or interpretation, and provided that the Court- Page 159 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 152 Appointed Mediator and the Monitor are authorized by the CCAA Court to proceed with implementation of the CCAA Plan, the remainder of the terms and provisions of the CCAA Plan will remain in full force and effect and will in no way be affected, impaired or invalidated by such holding, alteration or interpretation. 20.7 Transition Period - Responsibilities and Protections of FTI as Monitor and CCAA Plan Administrator FTI is acting and will continue to act in all respects in its capacity as Monitor in the CCAA Proceedings with respect to Imperial (and not in its personal capacity). In accordance with the approval by the CCAA Court of FTI's appointment as the CCAA Plan Administrator pursuant to Article 14, Section 14.1 and the CCAA Plan Administrator Appointment Order, subsequent to the Effective Time FTI will transform from the Monitor into the CCAA Plan Administrator and will fulfill the duties and responsibilities of the CCAA Plan Administrator set forth in the CCAA Plan, any other Definitive Documents and any Order made in the CCAA Proceeding. Notwithstanding the foregoing, during the period of time subsequent to the Effective Time during which FTI transitions from its capacity as Monitor to its capacity as CCAA Plan Administrator, from time to time as required and applicable, FTI may act in both its capacities as the Monitor and the CCAA Plan Administrator depending upon the duties and responsibilities that it is fulfilling. In all of its capacities as the Monitor, the Foreign Representative and the CCAA Plan Administrator, FTI shall not be responsible or liable for any obligations of Imperial and its Tobacco Company Group. FTI will have the powers and protections granted to it by the Initial Order, the CCAA Plan, the CCAA, the Sanction Order and any other Order made in the CCAA Proceeding and the Chapter 15 Proceedings, including the protections expressly set forth in Article 18, Sections 18.1.1 to 18.1.10 of the CCAA Plan. FTI and its Affiliates, shareholders, Affiliates' shareholders, employees, legal counsel, advisors, representatives and agents will incur no personal liability whatsoever whether on their own part or in respect of any failure on the part of Imperial and its Tobacco Company Group to observe, perform or comply with any of their obligations under the CCAA Plan. Any release, discharge or other benefit conferred upon FTI pursuant to the CCAA Plan will enure to the benefit of FTI and its Affiliates, shareholders, Affiliates' shareholders, employees, legal counsel, advisors, representatives and agents. FTI in its personal capacity, and each of its Affiliates, shareholders, Affiliates' shareholders, employees, legal counsel, advisors, representatives and agents, will be third party beneficiaries to the CCAA Plan entitled to enforce such releases, discharges and other benefits in accordance with the terms of the CCAA Plan. 20.8 Transition Period - Responsibilities and Protections of the Court-Appointed Mediator The Court-Appointed Mediator is acting and will continue to act in all respects in his capacity as the Court-Appointed Mediator in the CCAA Proceeding with respect to Imperial (and not in his personal capacity). Subsequent to the Effective Time, if (i) requested by FTI in its capacity as the Monitor, the Foreign Representative or the CCAA Plan Administrator, or (ii) directed by the CCAA Court, the Court-Appointed Mediator will perform such duties and provide such services as may arise from or relate to the fulfillment of his mandate to mediate and give effect to the global settlement of all Tobacco Claims. Page 160 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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![](ex422_ccaa041.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;153 The Court-Appointed Mediator shall not be responsible or liable for any obligations of Imperial and its Tobacco Company Group. The Court-Appointed Mediator will have the powers and protections granted to him by the Initial Order, the CCAA Plan, the CCAA, the Sanction Order, the CCAA Plan Administrator Appointment Order, the Court-Appointed Mediator's Ongoing Services Direction, the Fee Approval Direction and any other Order made in the CCAA Proceeding, including the protections expressly set forth in Article 18, Sections 18.1.1 to 18.1.10 of the CCAA Plan. The Court-Appointed Mediator and his heirs, successors, assigns, representatives, advisors, legal counsel, consultants and agents will incur no personal liability whatsoever whether on their own part or in respect of any failure on the part of Imperial and its Tobacco Company Group to observe, perform or comply with any of their obligations under the CCAA Plan. Any release, discharge or other benefit conferred upon the Court-Appointed Mediator pursuant to the CCAA Plan will enure to the benefit of the Court-Appointed Mediator and his heirs, successors, assigns, representatives, advisors, legal counsel, consultants and agents. The Court-Appointed Mediator and his heirs, successors, assigns, representatives, advisors, legal counsel, consultants or agents, will be third party beneficiaries to the CCAA Plan entitled to enforce such releases, discharges and other benefits in accordance with the terms of the CCAA Plan. 20.9 Miscellaneous Claims Bar Date Nothing in the CCAA Plan extends or shall be interpreted as extending or amending the Miscellaneous Claims Bar Date or gives or shall be interpreted as giving any rights to any Person in respect of Claims that have been barred or extinguished pursuant to the Claims Procedure Order and the Meeting Order. 20.10 Different Capacities Persons who are impacted by the CCAA Plan may be impacted in more than one capacity. Unless expressly provided herein to the contrary, a Person will be entitled to participate hereunder in each such capacity. Any action taken by a Person in one capacity will not impact such Person in any other capacity, unless otherwise provided in the Meeting Order expressly agreed by the Court- Appointed Mediator, the Monitor and the Person in writing, or unless its Claims overlap or are otherwise duplicative. 20.11 Notices Any notice or other communication to be delivered hereunder must be in writing and reference the CCAA Plan and may, subject as hereinafter provided, be made or given by personal delivery, ordinary mail or by email addressed to the respective parties as follows: (a) If to Imperial: Imperial Tobacco Canada Limited 3711 Rue Saint-Antoine Ouest Montréal QC H4C 3P6 Email: Plan_canada@bat.com Page 161 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 154 With a copy to (which will not constitute notice): Osler, Hoskin & Harcourt LLP 100 King Street West 1 First Canadian Place Suite 6200, P.O. Box 50 Toronto ON M5X 1B8 Attention: Marc Wasserman / Martino Calvaruso Email: mwasserman@osler.com / mcalvaruso@osler.com (b) If to an Affected Creditor: to the mailing address or email address provided on such Affected Creditor's Statement of Negative Notice Claim or other proof of claim, or such more recent address particulars of an Affected Creditor as noted in the files of Imperial or the Monitor. (c) If to the Monitor: FTI Consulting Canada Inc. 79 Wellington Street West Suite 2010, P.O. Box 104 Toronto ON M5K 1G8 Email: imperialtobacco@fticonsulting.com With a copy to (which will not constitute notice): Davies Ward Phillips & Vineberg LLP 155 Wellington Street West Toronto ON M5V 3J7 Email: itcan@dwpv.com or to such other address as any party may from time to time notify the others in accordance with this Section, or, in the case of an address change for Imperial or the Monitor or CCAA Plan Administrator, by posting notice of such address change on the Monitor's website (http://cfcanada.fticonsulting.com/imperialtobacco). Any such communication so given or made shall be deemed to have been given or made and to have been received on the day of delivery if delivered, or on the day of sending by means of recorded electronic communication, provided that such day in either event is a Business Day and the communication is so delivered or sent before 5:00 p.m. (Eastern Time) on such day. Otherwise, such communication shall be deemed to have been given and made and to have been received on the next following Business Day. 20.12 Further Assurances Each of the Persons named or referred to in, or subject to, the CCAA Plan will execute and deliver all such documents and instruments and do all such acts and things as may be necessary or desirable to carry out the full intent and meaning of the CCAA Plan and to give effect to the Page 162 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 155 transactions contemplated by the CCAA Plan and the Definitive Documents notwithstanding any provision of the CCAA Plan that deems any event or transaction to occur without further formality. 20.13 Language The CCAA Plan, as well as any notices, schedules or other documents related thereto, have been and will be prepared in the English and French languages. To the extent a French language or other translation is prepared, any such translation will be for informational purposes only, it being intended that the English language version will govern and prevail in all respects. 20.14 Acts to Occur on Next Business Day If any distribution, payment or act under the CCAA Plan is required to be made or performed on a date that is not a Business Day, then the making of such distribution, payment or the performance of such act may be completed on the next succeeding Business Day, but will be deemed to have been completed as of the required date. 20.15 Non-Consummation of the CCAA Plan The Court-Appointed Mediator and the Monitor reserve the right to revoke or withdraw the CCAA Plan at any time prior to the date on which the CCAA Court grants the Sanction Order. If the Court-Appointed Mediator and the Monitor revoke or withdraw the CCAA Plan, or if the Sanction Order is not issued or if the Plan Implementation Date does not occur, (a) the CCAA Plan and all transactions contemplated in the CCAA Plan shall be null and void in all respects, (b) any settlement or compromise embodied in the CCAA Plan, or any document or agreement executed pursuant to or in connection with the CCAA Plan shall be deemed to be null and void, and (c) nothing contained in the CCAA Plan, and no acts taken in preparation for consummation of the CCAA Plan, shall (i) constitute or be deemed to constitute a waiver or release of any Claims by or against Imperial or any member of its Tobacco Company Group or any other Person, (ii) prejudice in any manner the rights of Imperial or any member of its Tobacco Company Group or any other Person in any further proceedings involving any of Imperial or any member of its Tobacco Company Group, or (iii) constitute an admission of any sort by Imperial or any member of its Tobacco Company Group or any other Person. 20.16 Deemed Waiver of Defaults from Plan Implementation Date From and after the Plan Implementation Date, all Persons shall be deemed to have waived any and all defaults of Imperial then existing or previously committed by Imperial, or caused directly or indirectly by Imperial, the commencement of the CCAA Proceeding or the Chapter 15 Proceedings, any matter pertaining to the CCAA Proceeding or the Chapter 15 Proceedings, any of the provisions in the CCAA Plan or the Definitive Documents or steps or transactions contemplated in the CCAA Plan or the Definitive Documents, or any non-compliance with any covenant, warranty, representation, undertaking, positive or negative pledge, term, provision, condition or obligation, expressed or implied, in any contract, instrument, credit document, lease, guarantee, agreement for sale, deed, licence, permit or other agreement, written or oral, and any and all amendments or supplements thereto, existing between such Person and Imperial and any and all notices of default and demands for payment or any step or proceeding taken or commenced in connection therewith under any such agreement shall be deemed to have been rescinded and of Page 163 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL 156 no further force or effect; provided that, nothing herein shall be deemed to limit or excuse Imperial from performing their obligations thereunder and under the CCAA Plan or be a waiver of any defaults by Imperial under the CCAA Plan or the other Definitive Documents. DATED as of the 27th day of August, 2025. Page 164 of 1311 Electronically filed / Déposé par voie électronique : 28-Aug-2025 Toronto Superior Court of Justice / Cour supérieure de justice Court File No./N° du dossier du greffe : CV-19-00616077-00CL

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## Ex-8

British American Tobacco p.l.c. Form 20-F 2025<br>

**Exhibit 8**

The subsidiary undertakings that are held directly by British American Tobacco p.l.c. (the ultimate Parent Company) are indicated thus \*; all others are held by sub-holding companies.

Unless otherwise stated, the equity shares held are in the form of ordinary shares or common stock, except for those indicated thus <sup>#</sup>, which include preference shares. The effective percentage of equity shares held in subsidiary undertakings is 100% unless otherwise stated. Further, where the effective percentage of equity shares held by the sub-holding company is different from that held by British American Tobacco p.l.c., the percentage of equity shares held by British American Tobacco p.l.c. is indicated thus ^ and is shown after the percentage interest held by the sub-holding company.

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| |
|:---|
| **Subsidiary Undertaking<br>By Jurisdiction of Incorporation** |
| **Albania** |
| British American Tobacco – Albania SH.P.K. |
| **Algeria** |
| British American Tobacco (Algérie) S.P.A. (51%)<sup>4</sup> |
| **Angola** |
| British American Tobacco – B.A.T. Angola, Limitada (99.80%)(99.93%)^ |
| Sociedade Industrial Tabacos Angola LDA (71.60%) |
| Sociedade Unificada Tabacos Angola LDA (62.67%) |
| **Argentina** |
| BAT Operaciones S.A.U. |
| British American Tobacco Argentina S.A.I.C.y F. (99.43%) |
| **Australia** |
| BAT Australasia Ltd |
| BAT Australia Ltd |
| BAT Australia Overseas Pty Ltd |
| BAT Australia Services Ltd |
| BAT South Pty Ltd |
| Rothmans Asia Pacific Limited<sup>#</sup> |
| The Benson & Hedges Company Pty. Limited |
| W.D. & H.O. Wills Holdings Limited |
| **Austria** |
| British American Tobacco (Austria) GmbH |
| **Bahrain** |
| British American Tobacco Middle East W.L.L. |
| **Bangladesh** |
| British American Tobacco Bangladesh Company Limited (72.91%) |
| **Barbados** |
| Southward Insurance Ltd. |
| **Belgium** |
| British American Tobacco Belgium N.V. |
| **Benin, Republic of** |
| British American Tobacco Benin SA (In Liquidation) |
| **Bolivia** |
| BAT Bolivia S.R.L. |
| **Bosnia and Herzegovina** |
| IPRESS d.o.o. |
| TDR d.o.o. Sarajevo |
| iNovine BH d.o.o. |
| **Botswana** |
| British American Tobacco Botswana (Pty) Limited |
| **Brazil** |
| Souza Cruz LTDA |
| Instituto Souza Cruz<sup>9</sup> |
| Yolanda Participacoes S.A. |
| **Bulgaria** |
| British American Tobacco Trading EOOD |
| **Cambodia** |
| British American Tobacco (Cambodia) Limited (71%) |
| **Cameroon** |
| British American Tobacco Cameroun S.A. (99.92%) |

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British American Tobacco p.l.c. Form 20-F 2025<br>

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| |
|:---|
| **Subsidiary Undertaking<br>By Jurisdiction of Incorporation** |
| **Canada** |
| Imera Canada Inc. |
| Imperial Tobacco Canada Limited |
| Imperial Tobacco Company Limited |
| Allan Ramsay and Company Limited |
| Cameo Inc. |
| Genstar Corporation<sup># 2</sup> |
| Imperial Brands Limited |
| Imperial Tobacco Products Limited |
| Imperial Tobacco Services Inc. |
| John Player & Sons Limited |
| Liggett & Myers Tobacco Company of Canada Limited (70%) (50%)^<sup>3</sup> |
| Marlboro Canada Limited |
| Medaillon Inc. |
| 2004969 Ontario Inc. |
| **Cayman Islands** |
| Trident Trust Company (Cayman) Ltd., One Capital Place, PO Box 847, Grand Cayman KY1-1103, Cayman Islands |
| R.J. Reynolds Tobacco (CI), Co. |
| **Chile** |
| British American Tobacco Chile Operaciones S.A. (99.51%) |
| BAT Chile S.A. |
| **China, People's Republic** |
| Nicoventures Technical (Shenzhen) Co., Ltd. |
| British American (Shanghai) Enterprise Development Co., Ltd |
| British American Nico Business Consulting (Shanghai) Co., Ltd |
| British American Consulting (Beijing) Co., Ltd<sup>7</sup> |
| **Colombia** |
| British American Tobacco Colombia S.A.S. |
| **Congo, Democratic Republic of** |
| British American Tobacco Congo SARL (In Liquidation) |
| British American Tobacco Import SARL |
| British American Tobacco Services Congo SARL |
| **Costa Rica** |
| BASS Americas S.A. |
| BATCCA Park Inversiones Inmobiliaria, S.A. |
| BATCCA Servicios S.A. |
| **Croatia** |
| BAT HRVATSKA d.o.o. u likvidaciji (In Liquidation) |
| INOVINE d.d. (93.42%) |
| TDR d.o.o. |
| HRVATSKI DUHANI d.d. |
| **Cuba, Republic of** |
| Brascuba Cigarrillos S.A. (50%) |
| **Cyprus** |
| B.A.T (Cyprus) Limited |
| Rothmans (Middle East) Limited |
| **Czech Republic** |
| British American Tobacco (Czech Republic), s.r.o. |
| **Denmark** |
| British American Tobacco Denmark A/S (House of Prince A/S) |
| Precis (1789) Denmark A/S |
| **Djibouti** |
| British American Tobacco Djibouti SARL |
| **Egypt** |
| BETCO for General Services and Marketing LLC |
| BETCO for Trade and Distribution LLC |
| British American Tobacco Egypt LLC |
| British American Tobacco North Africa LLC (In Liquidation) |

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British American Tobacco p.l.c. Form 20-F 2025<br>

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| |
|:---|
| **Subsidiary Undertaking<br>By Jurisdiction of Incorporation** |
| **Eritrea** |
| British American Tobacco (Eritrea) Share Company<sup>#</sup> |
| **Estonia** |
| British American Tobacco Estonia AS |
| **Eswatini** |
| British American Tobacco Swaziland (Pty) Limited |
| **Fiji** |
| Central Manufacturing Company Pte Limited |
| Rothmans of Pall Mall (Fiji) Pte Limited |
| **Finland** |
| British American Tobacco Finland Oy |
| **France** |
| Carreras France SAS |
| British American Tobacco France SAS |
| **Germany** |
| BATIG Gesellschaft fur Beteiligungen m.b.H. |
| British American Tobacco (Germany) GmbH |
| British American Tobacco (Industrie) GmbH |
| Quantus Beteiligungs-und Beratungsgesellschaft mbH i.L (In Liquidation) |
| **Ghana** |
| British American Tobacco Ghana Limited (97.09%) |
| **Greece** |
| British American Tobacco Hellas S.A. |
| **Guernsey** |
| Belaire Insurance Company Limited |
| **Guyana** |
| Demerara Tobacco Company Limited (70.25%) |
| **Honduras** |
| Tabacalera Hondureña S.A. (83.64%) |
| **Hong Kong** |
| British American Tobacco China Investments Limited |
| Reynolds Asia-Pacific Limited |
| BAT Global Travel Retail Limited |
| Nicoventures Business Consulting (Hong Kong) Co., Ltd. |
| British American Tobacco Asia-Pacific Region Limited |
| British-American Tobacco Company (Hong Kong) Limited |
| **Hungary** |
| BAT Pécsi Dohánygyár Korlátolt Felelosségu Társaság |
| **Indonesia** |
| PT Bentoel Internasional Investama (99.96%) |
| PT Bentoel Prima (99.99%)(99.96%)<sup>^</sup> |
| PT Bentoel Distribusi Utama (100%) (99.96%)<sup>^</sup> |
| **Iraq** |
| B.A.T. Iraqia Company for Tobacco Trading Limited |
| **Ireland** |
| Carroll Group Distributors Limited |
| P.J. Carroll & Company Limited |
| Rothmans of Pall Mall (Ireland) Limited<sup>#5</sup> |
| **Isle of Man** |
| Abbey Investment Company Limited |
| The Raleigh Investment Company Limited |
| Tobacco Manufacturers (India) Limited |
| **Italy** |
| BAT Trieste S.p.A. |
| British American Tobacco Italia S.p.A. |

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British American Tobacco p.l.c. Form 20-F 2025<br>

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| |
|:---|
| **Subsidiary Undertaking<br>By Jurisdiction of Incorporation** |
| **Ivory Coast** |
| British American Tobacco RCI SARL (In Liquidation) |
| **Jamaica** |
| Sans Souci Development Limited (100%) (50.40%) (In Liquidation)<sup>^10</sup> |
| Sans Souci Limited (100%) (50.40%) (In Liquidation)<sup>^10</sup> |
| Carreras Limited (50.40%) |
| **Japan** |
| British American Tobacco Japan, Ltd.<sup>8</sup> |
| **Jersey** |
| Pathway 5 (Jersey) Limited |
| **Jordan** |
| British American Tobacco Jordan Private Shareholding Company PSC Limited |
| **Kazakhstan, Republic of** |
| British American Tobacco Kazakhstan Trading LLP<sup>1</sup> |
| **Kenya** |
| BAT Kenya Tobacco Company Limited (100%) (60%)<sup>^</sup> |
| British American Tobacco Area Limited |
| British American Tobacco Kenya plc (60%) |
| **Korea, Republic of** |
| British American Tobacco Korea Manufacturing Limited |
| British American Tobacco Korea Limited |
| **Kosovo, Republic of** |
| British American Tobacco Kosovo SH.P.K. |
| **Kuwait** |
| BAT Kuwait for Wholesale and Retail Trading Company (S.P.C) |
| **Latvia** |
| British American Tobacco Latvia SIA |
| **Lesotho** |
| British American Tobacco Lesotho (Pty) Ltd |
| **Lithuania** |
| UAB British American Tobacco Lietuva |
| **Luxembourg** |
| British American Tobacco Brands (Switzerland) Limited |
| **Malawi** |
| British American Tobacco (Malawi) Limited |
| **Malaysia** |
| British American Tobacco GSD (Kuala Lumpur) Sdn Bhd |
| BAT Aspac Service Centre Sdn Bhd |
| British American Tobacco (Malaysia) Berhad (50%) |
| British American Tobacco Malaysia Foundation<sup>9</sup> |
| Commercial Marketers and Distributors Sdn. Bhd. (100%) (50%)<sup>^</sup> |
| Tobacco Importers and Manufacturers Sdn. Bhd. (100%)(50%)<sup>^</sup> |
| **Mali** |
| British American Tobacco (Mali) Sarl |
| **Malta** |
| British American Tobacco (Malta) Limited |
| Central Cigarette Company Limited |
| Rothmans of Pall Mall (Malta) Limited |
| **Mexico** |
| British American Tobacco Mexico Comercial, S.A. de C.V. |
| British American Tobacco Mexico, S.A. de C.V. |
| Cigarrera La Moderna, S.A. de C.V. |
| Procesadora de Tabacos de Mexico, S.A. de C.V. (93%) |
| British American Tobacco Servicios S.A. de C.V. |
| **Mozambique** |
| British American Tobacco Mozambique Limitada |

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British American Tobacco p.l.c. Form 20-F 2025<br>

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| |
|:---|
| **Subsidiary Undertaking<br>By Jurisdiction of Incorporation** |
| **Namibia** |
| British American Tobacco Namibia (Pty) Limited |
| **Netherlands** |
| Aruba Properties B.V. (In Liquidation) |
| B.A.T. Nederland B.V. |
| B.A.T. Netherlands Finance B.V. |
| British American Tobacco European Operations Centre B.V. |
| British American Tobacco Exports B.V. |
| British American Tobacco Holdings (Australia) B.V. |
| British American Tobacco Holdings (Malaysia) B.V. |
| British American Tobacco Holdings (South Africa) B.V. |
| British American Tobacco Holdings (The Netherlands) B.V. |
| British American Tobacco Holdings (Venezuela) B.V. |
| British American Tobacco Holdings (Vietnam) B.V. |
| British American Tobacco International (Holdings) B.V. |
| Molensteegh Invest B.V. |
| Precis (1790) B.V. |
| Rothmans Far East B.V. |
| Rothmans International Holdings B.V. |
| Rothmans Tobacco Investments B.V. |
| Rothmans UK Holdings B.V. |
| **New Zealand** |
| BAT (New Zealand) Limited |
| BAT Holdings (New Zealand) Limited |
| New Zealand (UK Finance) Limited<sup>#</sup> |
| **Nigeria** |
| British American Tobacco (Nigeria) Limited |
| British American Tobacco Marketing Nigeria Limited |
| British American Tobacco Nigeria Foundation<sup>9</sup> |
| **North Macedonia, Republic of** |
| TDR SKOPJE DOOEL Skopje |
| **Norway** |
| British American Tobacco Norway AS |
| **Pakistan** |
| Pakistan Tobacco Company Limited (94.65%) |
| Phoenix (Private) Limited (97%) (91.81%)<sup>^</sup> |
| **Panama** |
| British American Tobacco Central America S.A. (87.65%) |
| British American Tobacco Panama S.A. |
| Tabacalera Istmeña S.A. |
| BAT Caribbean, S.A. |
| **Papua New Guinea** |
| British American Tobacco (PNG) Limited |
| Rothmans of Pall Mall (P.N.G.) Limited (In Liquidation) |
| **Paraguay** |
| British American Tobacco Productora de Cigarrillos S.A. |
| **Peru** |
| British American Tobacco del Peru Holdings S.A. (98.55%)<sup>6</sup> |
| British American Tobacco del Peru, S.A.C. |
| **Poland** |
| CHIC Sp. z o.o |
| ESMOKING LIQUIDS SP. Z O.O |
| British American Tobacco Polska Trading sp. zo.o. |
| BAT DBS Poland sp. zo.o. |
| Rubiez 46, 61-612, Poznan, Poland |
| eSMOKING INSTITUTE sp. z o.o. |
| Nicoventures Poland sp. z o.o. (In Liquidation) |
| British-American Tobacco Polska S.A. |

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British American Tobacco p.l.c. Form 20-F 2025<br>

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| |
|:---|
| **Subsidiary Undertaking<br>By Jurisdiction of Incorporation** |
| **Portugal** |
| COTAPO Empreendimentos Commerciais e Industriais S.A. |
| Sociedade Unificada de Tabacos Limitada (76.40%) (In Liquidation) |
| **Qatar** |
| BAT Gulf for Trading LLC |
| British American Tobacco Q LLC |
| **Réunion** |
| B.A.T. La Réunion SAS |
| **Romania** |
| British American Shared Services (Europe) S.R.L. |
| British American GBS Recruitment S.R.L. |
| British American Tobacco (Romania) Trading SRL |
| British-American Tobacco Romania Investment S.R.L. |
| **Rwanda** |
| British American Tobacco Rwanda Limited |
| **Saint Lucia** |
| Carisma Marketing Services Ltd |
| Rothmans Holdings (Caricom) Limited |
| **Samoa** |
| British American Tobacco Company (Samoa) Limited |
| **Saudi Arabia, Kingdom of** |
| BAT Arabia for Trading |
| BAT Saudia for Trading |
| Regional HQ of British American Tobacco Middle East - Single Person Company |
| **Serbia** |
| British American Tobacco Vranje a.d. Vranje |
| **Singapore** |
| British American Tobacco Sales & Marketing Singapore Pte. Ltd. |
| British-American Tobacco Marketing (Singapore) Private Limited |
| British-American Tobacco (Singapore) Private Limited |
| **Solomon Islands** |
| Solomon Islands Tobacco Company Limited |
| **South Africa** |
| American Cigarette Company (Overseas) (Pty) Ltd |
| Benson and Hedges (Pty) Ltd (In Liquidation) |
| British American Tobacco Holdings South Africa (Pty) Ltd<sup>#</sup> |
| British American Tobacco Properties South Africa (Pty) Ltd. |
| British American Tobacco Services South Africa (Pty) Ltd |
| British American Tobacco South Africa (Pty) Ltd |
| British American Tobacco Sub-Saharan Africa (Pty) Ltd |
| Tobacco Research and Development Institute (Pty) Ltd |
| Twisp (Pty) Ltd |
| **Spain** |
| British American Tobacco España, S.A. |
| **Sri Lanka** |
| Ceylon Tobacco Company Plc (84.13%) |
| **Sudan** |
| Blue Nile Cigarette Company Limited |
| **Sweden** |
| Niconovum AB |
| Fiedler & Lundgren AB |
| British American Tobacco Sweden AB |
| **Switzerland** |
| American-Cigarette Company (Overseas) Limited |
| BAT Switzerland Vending SA |
| Rothmans of Pall Mall Limited |
| British American Tobacco Switzerland S.A. |
| Nicoventures Communications (Switzerland) SA |

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British American Tobacco p.l.c. Form 20-F 2025<br>

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| |
|:---|
| **Subsidiary Undertaking<br>By Jurisdiction of Incorporation** |
| **Tanzania, the United Republic of** |
| BAT Distribution Tanzania Limited |
| International Cigarette Distributors Limited (99%) (In Liquidation) |
| British American Tobacco (Tanzania) Limited (In Liquidation) |
| Zanzibar Distribution Company Limited (99%) (In Liquidation) |
| **Trinidad and Tobago** |
| The West Indian Tobacco Company Limited (50.13%) |
| **Türkiye** |
| British American Tobacco Tütün Mamulleri Sanayi ve Ticaret Anonim Sirketi |
| **Uganda** |
| Plot 16, Mackinnon road, Nakasero. Kampala Uganda, Kampala, 7100, Uganda |
| British American Tobacco Uganda Limited (90%) |
| **Ukraine** |
| LLC "British American Tobacco Sales and Marketing Ukraine"<sup>1</sup> |
| PJSC "A/T B.A.T. – Prilucky Tobacco Company" |
| **United Arab Emirates** |
| BAT Gen AI Lab Limited |
| BAT Middle East For Trading L.L.C. |
| British American Tobacco GCC DMCC |
| British American Tobacco ME DMCC |
| British American Tobacco International DMCC |
| **United Kingdom** |
| Murray, Sons & Company, Limited |
| Ryesekks P.L.C. (50%) (In Liquidation) |
| John Sinclair Limited (In Liquidation) |
| 10 Motives Limited |
| British American Tobacco UK Limited |
| Nicoventures Retail (UK) Limited |
| Allen & Ginter (UK) Limited |
| B.A.T (U.K. and Export) Limited |
| B.A.T Cambodia (Investments) Limited |
| B.A.T Services Limited |
| B.A.T Uzbekistan (Investments) Limited |
| B.A.T Vietnam Limited |
| B.A.T. China Limited |
| BAT Finance COP Limited |
| BATIF Dollar Limited |
| BATUS Limited |
| Big Ben Tobacco Company Limited (In Liquidation) |
| British American Shared Services (GSD) Limited |
| British American Shared Services Limited |
| British American Tobacco (AIT) Limited |
| British American Tobacco (GLP) Limited |
| British American Tobacco (Investments) Limited |
| British American Tobacco (Philippines) Limited |
| British American Tobacco (South America) Limited |
| British American Tobacco China Holdings Limited |
| British American Tobacco Exports Limited |
| British American Tobacco Georgia Limited |
| British American Tobacco Global Travel Retail Limited |
| British American Tobacco International Holdings (UK) Limited |
| British American Tobacco Investments (Central & Eastern Europe) Limited |
| British American Tobacco Korea (Investments) Limited |
| British American Tobacco Peru Holdings Limited |
| British American Tobacco UK Pension Fund Trustee Limited<sup>10</sup> |
| British-American Tobacco (Mauritius) p.l.c. |
| Carreras Rothmans Limited<sup>#</sup> |
| Chelwood Trading & Investment Company Limited |

---

------

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| |
|:---|
| **Subsidiary Undertaking<br>By Jurisdiction of Incorporation** |
| Myddleton Investment Company Limited |
| Nicovations Limited |
| Nicoventures Holdings Limited |
| Nicoventures Trading Limited |
| Pathion International Limited<sup>11</sup> |
| Powhattan Limited |
| Ridirectors Limited |
| Rothmans Exports Limited |
| Rothmans International Limited |
| Rothmans International Tobacco (UK) Limited |
| Ryservs (1995) Limited |
| Ryservs (No.3) Limited |
| The Water Street Collective Limited |
| Tobacco Exporters International Limited |
| Tobacco Marketing Consultants Limited |
| Venezuela Property Company Limited |
| Westanley Trading & Investment Company Limited |
| Westminster Tobacco Company Limited |
| Amalgamated Tobacco Company Limited (In Liquidation) |
| American Cigarette Company (Overseas) Limited |
| Ardath Tobacco Company Limited |
| B.A.T Additional Retirement Benefit Scheme Trustee Limited |
| B.A.T Industries p.l.c. |
| B.A.T. International Finance p.l.c.<sup>\*</sup> |
| B.A.T. Operating Finance Limited |
| BAT Finance Australia Ltd |
| BAT Finance Brazil Ltd |
| BAT Finance Chile Ltd |
| BAT Finance South Africa Ltd |
| BATLaw Limited |
| BATMark Limited<sup>\*</sup> |
| BATS Limited |
| Benson & Hedges (Overseas) Limited |
| British American Global Shared Services Limited |
| British American Tobacco (1998) Limited<sup>\*</sup> |
| British American Tobacco (2009 PCA) Limited |
| British American Tobacco (2009) Limited<sup>#</sup> |
| British American Tobacco (2012) Limited |
| British American Tobacco (Brands) Limited |
| British American Tobacco (Corby) Limited |
| British American Tobacco (NGP) Limited |
| British American Tobacco Healthcare Trustee Limited |
| British American Tobacco Taiwan Logistics Limited |
| British-American Tobacco (Holdings) Limited |
| Brown & Williamson Tobacco Corporation (Export) Limited |
| Btomorrow Ventures Limited |
| Carreras Limited |
| Courtleigh of London Limited (In Liquidation) |
| Dunhill Tobacco of London Limited |
| Louisville Securities Limited |
| Moorgate Tobacco Co. Limited |
| Peter Jackson (Overseas) Limited |
| Precis (1789) Limited |
| Precis (1814) Limited<sup>#</sup> |
| Rothmans International Enterprises Limited |
| Rothmans of Pall Mall Limited |
| Senior Service (Overseas) Limited |
| The London Tobacco Company Limited |

---

------

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| |
|:---|
| **Subsidiary Undertaking<br>By Jurisdiction of Incorporation** |
| Weston (2009) Limited |
| Weston Investment Company Limited<sup>#</sup> |
| **United States** |
| B.A.T Capital Corporation |
| BATUS Holdings Inc. |
| BATUS Japan, Inc. |
| BATUS Retail Services, Inc. |
| British American Tobacco (Brands), Inc. |
| Brown & Williamson Holdings, Inc. |
| BT DE Investments Inc.<sup>12</sup> |
| BTI 2014 LLC<sup>1</sup> |
| BTomorrow Services Inc. |
| Imasco Holdings Group, Inc. |
| Imasco Holdings, Inc. |
| ITL (USA) Limited |
| Louisville Corporate Services, Inc. |
| Nicoventures U.S. Limited |
| Beni Oral Nicotine LLC<sup>1</sup> |
| The Water Street Collective LLC<sup>1</sup> |
| Conwood Holdings, Inc. |
| EXP Homes, LLC<sup>1</sup> |
| Lorillard Licensing Company LLC<sup>1</sup> |
| Lorillard, LLC<sup>1</sup> |
| Modoral Brands Inc. |
| Northern Brands International, Inc. |
| R. J. Reynolds Global Products, Inc. |
| R. J. Reynolds Tobacco Company |
| R. J. Reynolds Tobacco International, Inc. |
| R. J. Reynolds Vapor Company |
| R.J. Reynolds Tobacco Co. |
| R.J. Reynolds Tobacco Holdings, Inc. |
| RAI Innovations Company |
| RAI International, Inc. |
| RAI Services Company |
| RAI Strategic Holdings, Inc. |
| Reynolds American Inc.<sup>#</sup> |
| Reynolds Brands Inc. |
| Reynolds Marketing Services Company |
| Reynolds Technologies, Inc. |
| RJR Realty Relocation Services, Inc. |
| RJR Vapor Co., LLC<sup>1</sup> |
| Rosswil LLC<sup>1</sup> |
| S.F. Imports, Inc. |
| Santa Fe Natural Tobacco Company, Inc. |
| Spot You More, Inc. |
| Vuse Stores LLC<sup>1</sup> |
| American Snuff Company, LLC<sup>1</sup> |
| Genstar Pacific Corporation |
| Reynolds Finance Company |
| **Uruguay** |
| Kellian S.A. |
| **Uzbekistan** |
| JSC JV "UZBAT A.O." (99.99%) |
| **Venezuela** |
| Proyectos de Inversion BAT 1902 C.A. |
| Agrobigott, C.A. |
| Compania Anonima Cigarrera Bigott Sucesores |
| Distribuidora Bigott, C.A. |

---

------

British American Tobacco p.l.c. Form 20-F 2025<br>

---

| |
|:---|
| **Subsidiary Undertaking<br>By Jurisdiction of Incorporation** |
| Fundacion Bigott<sup>9</sup> |
| Agrega de Venezuela, Agreven, C.A. (50%) (In Liquidation) |
| **Vietnam** |
| British American Tobacco – Vinataba (JV) (70%) |
| East Asia Area Services Company Limited<sup>7</sup> |
| VINA-BAT Joint Venture Company Limited (49%) |
| **Zambia** |
| British American Tobacco (Zambia) plc (75.10%) |
| **Zimbabwe** |
| American-Cigarette Company (Overseas) (Private) Ltd |
| British American Tobacco Zimbabwe (Holdings) Limited (43.13%) |
| Rothmans Limited (In Liquidation) |

---

In addition to the Group's subsidiaries, the Group also has share interests in a number of associates, joint ventures and other minority shareholdings. Among the Group's minority shareholdings is a 31% equity interest in Kamaran Industry & Investment Company ("Kamaran"), a Yemen-based company that was sanctioned in the United States under Executive Order 13224 on 11 September 2025. The Group sold cut rag tobacco and cigarette wrapping materials to Kamaran until 2022, when the Group decided to cease business activities in Yemen as first reported in the Group's Annual Report and Form 20-F for the year ended 31 December 2022.

In 2023, the Group relinquished its rights and responsibilities as a minority shareholder of Kamaran by refraining from participating in the management of the company, removing its board representatives and declining to accept any dividend payments. Since that time, the Group has not had any gross revenues or net profits related to its minority shareholding in Kamaran.

Despite the Group's cessation of business activities in Yemen, the Group has been unable to sell or dispose of its shares in Kamaran due to legal restrictions. The Group's continued ownership of a 31% minority shareholding in Kamaran following the designation of Kamaran does not violate U.S. law.

The Group has no plans to resume its rights and responsibilities as a minority shareholder of Kamaran or to restart sales to Kamaran.

**Notes:**

1. Ownership held in Membership Interest.

2. Ownership held in the class of Series F and 2nd Preferred Shares.

3. Ownership held in the class of A Shares (50%) and class of B Shares (100%).

4. Ownership held in class of A Shares and B Shares.

5. Ownership held solely in class of Preference Shares.

6. Ownership held in class of Ordinary and Investment Shares.

7. Ownership held in Registered Capital.

8. Ownership held in Equity Units.

9. Entity type: Foundation, Non-Profit or Limited by Guarantee.

10.31 March year-end.

11.31 July year-end.

12. Ownership held as Convertible Debenture.

## Ex-12

![image_11.jpg](image_11.jpg)

![image_2.jpg](image_2.jpg)

**Exhibit 12**

**CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF**

**2002**

I, Tadeu Marroco, certify that:

1. I have reviewed this Annual Report on Form 20-F of British American Tobacco p.l.c.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or

omit to state a material fact necessary to make the statements made, in light of the circumstances

under which such statements were made, not misleading with respect to the period covered by this

report;

3. Based on my knowledge, the financial statements, and other financial information included in this

report, fairly present in all material respects the financial condition, results of operations and cash

flows of the company as of, and for, the periods presented in this report;

4. The company's other certifying officer and I are responsible for establishing and maintaining

disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e))

and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and

15d-15(f)) for the company and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and

procedures to be designed under our supervision, to ensure that material information relating

to the company, including its consolidated subsidiaries, is made known to us by others within

those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over

financial reporting to be designed under our supervision, to provide reasonable assurance

regarding the reliability of financial reporting and the preparation of financial statements for

external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the company's disclosure controls and procedures and

presented in this report our conclusions about the effectiveness of the disclosure controls and

procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the company's internal control over financial reporting

that occurred during the period covered by the annual report that has materially affected, or is

reasonably likely to materially affect, the company's internal control over financial reporting;

and

5. The company's other certifying officer and I have disclosed, based on our most recent evaluation

of internal control over financial reporting, to the company's auditors and the audit committee of

the company's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal

control over financial reporting which are reasonably likely to adversely affect the company's

ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a

significant role in the company's internal control over financial reporting.

---

| | | | |
|:---|:---|:---|:---|
| Signature: | /s/ Tadeu Marroco | Date: | 13 February 2026 |
|  | Tadeu Marroco<br>Chief Executive<br>|  |  |

---

![image_11.jpg](image_11.jpg)

![image_2.jpg](image_2.jpg)

**CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF**

**2002**

I, Javed Iqbal, certify that:

1. I have reviewed this Annual Report on Form 20-F of British American Tobacco p.l.c.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or

omit to state a material fact necessary to make the statements made, in light of the circumstances

under which such statements were made, not misleading with respect to the period covered by this

report;

3. Based on my knowledge, the financial statements, and other financial information included in this

report, fairly present in all material respects the financial condition, results of operations and cash

flows of the company as of, and for, the periods presented in this report;

4. The company's other certifying officer and I are responsible for establishing and maintaining

disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e))

and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and

15d-15(f)) for the company and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and

procedures to be designed under our supervision, to ensure that material information relating

to the company, including its consolidated subsidiaries, is made known to us by others within

those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over

financial reporting to be designed under our supervision, to provide reasonable assurance

regarding the reliability of financial reporting and the preparation of financial statements for

external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the company's disclosure controls and procedures and

presented in this report our conclusions about the effectiveness of the disclosure controls and

procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the company's internal control over financial reporting

that occurred during the period covered by the annual report that has materially affected, or is

reasonably likely to materially affect, the company's internal control over financial reporting;

and

5. The company's other certifying officer and I have disclosed, based on our most recent evaluation

of internal control over financial reporting, to the company's auditors and the audit committee of

the company's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal

control over financial reporting which are reasonably likely to adversely affect the company's

ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a

significant role in the company's internal control over financial reporting.

---

| | | | |
|:---|:---|:---|:---|
| Signature: | /s/ Javed Iqbal | Date: | 13 February 2026 |
|  | Javed Iqbal<br>Interim Chief Financial Officer<br>|  |  |

---

## Ex-13

![image_1.jpg](image_1.jpg)

![image_0.jpg](image_0.jpg)

**Exhibit 13**

**CERTIFICATION UNDER SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report on Form 20-F (the "Report") of British American Tobacco

p.l.c., a public limited company incorporated in England and Wales (the "Company"), for the year

ended December 31, 2025, as filed with the Securities and Exchange Commission on the date hereof,

each of the undersigned officers certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002, that the Report fully complies with the requirements

of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in

the Report fairly presents, in all material respects, the financial condition and results of operations of

the Company.

---

| | | | |
|:---|:---|:---|:---|
| Signature: | /s/ Tadeu Marroco | Date: | 13 February 2026 |
|  | Tadeu Marroco<br>Chief Executive<br>|  |  |

---

---

| | | | |
|:---|:---|:---|:---|
| Signature: | /s/ Javed Iqbal | Date: | 13 February 2026 |
|  | Javed Iqbal<br>Interim Chief Financial Officer<br>|  |  |

---

## Ex-15

**EXHIBIT 15**

**Consent of Independent Registered Public Accounting Firm**

We consent to the incorporation by reference in the registration statements (Nos. 333-223678, 333-219440, 333-237186, 333-285085 and 333-289164) on Form S-8 and the registration statement (Nos. 333-288448, 333-288448-01, 333-288448-02, 333-288448-03, 333-288448-04 and 333-288448-05) on Form F-3 of our report dated February 11, 2026, with respect to the consolidated financial statements of British American Tobacco p.l.c. and the effectiveness of internal control over financial reporting.

/s/ KPMG LLP

London, United Kingdom

February 13, 2026

<br>