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Launch of Proposed Block Trade of ITC Shares

PRESS RELEASE

27 MAY 2025

Launch of Proposed Block Trade of ITC Shares

This announcement contains inside information.

ÌÇÐÄÊÓƵ p.l.c. ("BAT" or the "Group") announces that its wholly-owned subsidiary Tobacco Manufacturers (India) Limited ("TMI") intends to sell c.2.3 per cent of the issued ordinary share capital in ITC Limited ("ITC") (the "Block Trade Shares") to institutional investors by way of an accelerated bookbuild process (the "Block Trade"), subject to customary closing conditions.

The transaction will provide ÌÇÐÄÊÓƵwith increased financial flexibility as it delivers on its commitment to invest in transformation, deleverage and sustainable shareholder returns. Proceeds will be used to progress to within the target 2-2.5x adjusted net debt/adjusted EBITDA leverage corridor (adjusted for Canada) by the end of 2026 and to continue our sustainable buyback programme by enabling an intended £200m increase in the share buyback to a total of £1.1bn in 2025.

BAT's initial investment in ITC dates back to the early 1900s and the two companies have a longstanding, mutually beneficial relationship. As one of India's leading FMCG enterprises, ITC has delivered significant value for its shareholders. Following completion of the proposed Block Trade, ÌÇÐÄÊÓƵwill remain a significant shareholder of ITC, with a c.23.1 per cent holding.

Tadeu Marroco, Chief Executive of BAT, said "ITC is a valued associate of ÌÇÐÄÊÓƵin an attractive geography with long-term growth potential where ÌÇÐÄÊÓƵbenefits from exposure to the world's most populous market. Whilst this transaction supports delivery on our commitments to ÌÇÐÄÊÓƵshareholders, we continue to view ITC as a core strategic component of our global footprint as we partner on business opportunities in India. I am confident that ITC, under the stewardship of its current management, will continue to create further value for its shareholders."

Further details of the value of net proceeds received will be shared once the transaction has completed. Other than the intended increase to the 2025 share buyback, the transaction has no impact on 2025 or 2026 guidance.

The person responsible for arranging for the release of this announcement on behalf of ÌÇÐÄÊÓƵ p.l.c. is Caroline Ferland, Group Company Secretary.

Enquiries

Ìý

Media Centre
+44 (0) 20 7845 2888 (24 hours)Ìý| press_office@bat.com |Ìý

Investor Relations
Victoria Buxton: +44 (0)20 7845 2012Ìý|ÌýIR_team@bat.com

Further information

This announcement contains inside information in relation to ÌÇÐÄÊÓƵ p.l.c. for the purposes of Article 7 of the Market Abuse Regulation.

The securities referred to herein will not be, and have not been, registered under the United States Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act.

Forward-looking statements

This release 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" and similar expressions. These include statements regarding our deleverage target, Smokeless customer target ambition, New Categories revenue targets and our sustainability targets, as well as statements regarding the intended sale of the Block Trade Shares, the increase in the share buyback programme.

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 release are reasonable but they may be affected by a wide range of variables that could cause actual results to differ materially from those currently anticipated. A review of the reasons why actual results and developments may differ materially from the expectations disclosed or implied within forward-looking statements can be found by referring to the information contained under the headings "Cautionary Statement", "Group Principal Risks" and "Group Risk Factors" in the 2024 Annual Report and Form 20-F of BAT.Ìý

Additional information concerning these and other factors can be found in BAT's filings with the U.S. Securities and Exchange Commission ("SEC"), including the Annual Report on Form 20-F and Current Reports on Form 6-K, which may be obtained free of charge at the SEC's website, www.sec.gov, and BAT’s Annual Reports, which may be obtained free of charge from the ÌÇÐÄÊÓƵwebsite www.bat.com.Ìý

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 release and ÌÇÐÄÊÓƵundertakes 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.