bti-20260630


BAT Interim Announcement 2026	Summary	Performance Review	Financial Statements	Other Information	Data Lake and Reconciliations

Summary Information


Performance highlights	IFRS		Non-GAAP
Performance highlights	Reported		Adjusted3
For six months to 30 June 2026	Current	vs 2025	Current	vs 2025
	rates	(current)	rates	(constant)

Cigarette volume share1		-30 bps
Cigarette value share1		-40 bps
Consumers of Smokeless products2	35.0m	+0.9m
Revenue (£m)	£12,235m	+1.4%	£12,235m	+2.9%
Revenue from New Categories (£m)	£1,928m	+16.8%	£1,928m	+18.0%
Smokeless revenue as % of total revenue (%)4	19.8%	+1.6 ppts
Profit from operations (£m)	£4,266m	-15.8%	£5,426m	+2.5%



Operating margin (%)	34.9%	-7.1 ppts	44.4%	-20 bps
Diluted EPS (pence)	145.3p	-28.6%	167.7p	+5.9%
Net cash generated from operating activities (£m)	£3,402m	+47.3%



Borrowings including lease liabilities (£m)	£35,063m	-0.4%

The use of non-GAAP measures, including adjusting items and constant currencies, are further discussed from page 47, with reconciliation from the most comparable IFRS measure provided.

Notes:

1. To better reflect the evolving performance of each category, from 1 January 2026, the Group has decoupled the value share and volume share metrics from a combined Cigarettes and HP

view to disclose the performance of Cigarettes as a distinct category. 2. Internal estimate. 3. See page 25 for discussion on adjusting items. 4. Movement in Smokeless revenue as a

percentage of total revenue compared to full year 2025.

Full-Year 2026 Guidance

–Global cigarette industry volume expected to be down c.3%.

–Gross capital expenditure in 2026 of approximately £750 million.

Enquiries


For more information, please contact Investor Relations: Victoria Buxton +44 (0)20 7845 2012 Amy Chamberlain +44 (0)20 7845 1124 John Harney+44 (0)20 7845 1263 BAT IR TeamIR_Team@bat.com	Press Office: +44 (0)20 7845 2888 \| @BATplc media_centre@bat.com


BAT Interim Announcement 2026	Summary	Performance Review	Financial Statements	Other Information	Data Lake and Reconciliations

Group Operating Review

Analysis of profit from operations and diluted earnings per share by segment

Prior year data is provided in the table on page 57.


For six months to 30 June 2026	Reported	vs 2025	Adj Items1	Adjusted	vs 2025	Exch.	Adjusted at CC2	vs 2025
For six months to 30 June 2026	£m	%	£m	£m	%	£m	£m	%
Revenue
U.S.	5,687	+4.7%	—	5,687	+4.7%	206	5,893	+8.5%
AME	4,402	+2.8%	—	4,402	+2.8%	(83)	4,319	+0.9%
APMEA	2,146	-8.9%	—	2,146	-8.9%	61	2,207	-6.3%
Total Group	12,235	+1.4%	—	12,235	+1.4%	184	12,419	+2.9%
Profit from Operations
U.S.	2,595	+15.0%	652	3,247	+6.0%	124	3,371	+10.1%
AME	1,212	-38.4%	259	1,471	-0.2%	(28)	1,443	-2.1%
APMEA	459	-45.7%	249	708	-17.4%	8	716	-16.5%
Total Group	4,266	-15.8%	1,160	5,426	+0.6%	104	5,530	+2.5%
Net finance costs	(403)	-58.4%	(391)	(794)	-8.9%	(12)	(806)	-7.5%
Associates and joint ventures	189	-87.2%	—	189	-18.6%	22	211	-8.9%
Profit before tax	4,052	-27.3%	769	4,821	+1.4%	114	4,935	+3.8%
Taxation	(824)	-18.3%	(279)	(1,103)	—%	(28)	(1,131)	+2.5%
Non-controlling interests	(38)	-29.1%	(2)	(40)	-28.7%	(2)	(42)	-25.7%
Coupons relating to hybrid bonds net of tax	(28)	+32.1%	—	(28)	+32.1%	—	(28)	+32.1%
Profit attributable to shareholders	3,162	-29.6%	488	3,650	+2.2%	84	3,734	+4.5%
Diluted number of shares (m)	2,176	-1.3%		2,176	-1.3%		2,176	-1.3%
Diluted earnings per share (pence)	145.3	-28.6%		167.7	+3.5%		171.6	+5.9%

1.Adjusting items represent certain items which the Group considers distinctive based upon their size, nature or incidence - see pages 25 to 26.

2.CC: constant currency – measures are calculated based upon a re-translation, at the prior year’s exchange rates, of the current year’s results of the Group and, where applicable, its

segments.

Total Group revenue

Reported revenue increased 1.4% to £12,235 million, despite a translational foreign exchange headwind of 1.5%.

On a constant currency basis, revenue grew by 2.9%, as:

–The U.S. grew revenue (up 8.5%) with combustibles up 5.0% (driven by price/mix, including excise duty drawback, of +10.2%

and short-term inventory movements) which were partly offset by lower volume (down 5.2%). New Categories grew 58.1%,

driven by the success of Velo Plus (with revenue of Modern Oral up 220%) and Vapour up 19.8%;

–AME increased by 0.9% led by combustibles (up 2.5% as price/mix of +8.7% offset a 6.2% decline in volume) and the growth of

Modern Oral (up 21.8%), which drove New Categories revenue up 1.9%. However, Vapour was down 13.9% (largely due to

regulatory changes in Poland) with HP down 10.8%, as growth in Romania was more than offset by higher investment due to

competitive activity in Italy and Poland.

–APMEA revenue was down 6.3%, mainly driven by the challenging regulatory environment and the impact of illicit combustibles

volume in Bangladesh and Australia, the timing of inventory movements in Vietnam (driven by regulatory changes that were

implemented in 2025) and lower volume in Malaysia, which more than offset higher revenue in Pakistan (led by pricing and a return

to volume growth). HP was down 12.5%, largely due to inventory movements and heightened competition in Japan.

In total, New Categories growth accelerated, with revenue up 18.0% on a constant rates basis driven by Modern Oral (up

65.9%). Vapour revenue returned to growth with an increase of 5.3%, while HP revenue was down 11.7%.

Group cigarette volume share declined 30 bps and value share was down 40 bps with U.S. volume share declining 80 bps and

value share down 40 bps.

Refer to pages 5 to 7 for discussion on regional performance and pages 8 to 9 for a further discussion on the performance by category.


BAT Interim Announcement 2026	Summary	Performance Review	Financial Statements	Other Information	Data Lake and Reconciliations

Group Operating Review

Continued

Profit from operations, operating margin

Profit from operations on a reported basis was down 15.8%, with reported operating margin down 7.1 ppts to 34.9%. These were

driven by higher adjusting items of £1,160 million (compared to £325 million in the six months ended 30 June 2025), due to:

–a lower net credit of £38 million (30 June 2025: £575 million) in respect of the provision related to the Canadian litigation

settlement described on page 26; and

–costs of £370 million in respect of the Group's operational and process review programme (referred to as Fit2Win, as discussed

on page 13); partly offset by

–a credit of £149 million as the Group settled historical litigation with ITG Brands, which was treated as an adjusting item in the

six months ended 30 June 2026; and

–impairment charges in respect of Peru of £72 million recognised in the prior year that did not repeat (as discussed on page 26).

The Group's performance in the six months ended 30 June 2026 was also negatively impacted by a translational foreign exchange

headwind of 1.9% or £104 million.

On an adjusted, constant currency basis, profit from operations increased 2.5% to £5,530 million (30 June 2025: £5,394 million).

Included within the above was £109 million (30 June 2025: £154 million) related to the percentage (2026: 85%; 2025: 100%) of the

Canadian business' net income after taxes (excluding New Categories) that forms the payment amounts to claimants as part of

the settlement agreement.

Despite inflation on our product costs, estimated to be 3.7% (or £101 million at constant rates), this improvement in performance

was largely due to:

–the U.S., which grew by 10.1%; and

–AME; partly offset by

–APMEA (down 16.5%), with the regional performance largely driven by the respective revenue performance discussed above.

In aggregate, Group New Categories contribution was up driven by Modern Oral (notably in the U.S. and with growth in AME) and

Vapour, partially offset by higher investment in HP in APMEA (in Japan) and AME (in Italy, Poland and Romania).

Adjusted operating margin was down 20 bps at 44.5% at constant rates of exchange.

For a full discussion on the performance by region, please see pages 5 to 7.

Earnings per share

Basic earnings per share were down 28.6% to 146.1p (30 June 2025: 204.6p) due to lower profit from operations and items that

benefitted the prior year and did not repeat, notably a gain of £333 million in respect of the demerger of the hotels division of the

Group's Indian associate ITC and a provisional gain that arose on the partial sale of the Group's investment in ITC in 2025 of £904 million.

However, in 2026, the Group recognised an adjusting credit to net finance costs of £315 million and an adjusting credit to taxation of

£95 million related to the FII GLO litigation following further judgments by the Supreme Court in the UK, as discussed on page 36.

Basic earnings per share were positively impacted by the reduction in the number of shares due to the cumulative effect of the

2025 and 2026 share buy-back programmes, with 14,609,571 ordinary shares repurchased and cancelled in the period.

Before adjusting items, the impact of translational foreign exchange and including the dilutive effect of employee share schemes,

adjusted diluted earnings per share, at constant rates, were up 5.9% to 171.6p (30 June 2025: 162.0p).

For a full reconciliation of diluted earnings per share to adjusted diluted earnings per share at constant rates, see page 54. Please also refer to page 57 for further reconciliations of profit

from operations and diluted EPS to adjusted profit from operations and adjusted diluted EPS at both current and constant rates of exchange.


BAT Interim Announcement 2026	Summary	Performance Review	Financial Statements	Other Information	Data Lake and Reconciliations

Regional Review

The performances of the regions are discussed below. The following discussion is based upon the Group’s internal reporting structure.

All references to volume share or value share movement in the following discussion are compared to FY 2025. See page 40 for a discussion on the use of these measures.

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.

United States (U.S.):

–Reported revenue up 4.7%, an increase of 8.5% at constant rates.

–Our Modern Oral category volume share increased 11.6 ppts to 29.8%, with Velo Plus driving strong revenue growth in Modern

Oral, up 209% (or 220% at constant rates).

–We increased our Vapour value share leadership in tracked channels (up 4.1 ppts to 55.9%), with Vapour revenue back to

growth (up 15.6%), an increase of 19.8% at constant rates of exchange, driven by higher volume (up 14.9%).

–Combustibles revenue up 1.3% (up 5.0% at constant rates) as short-term inventory movements and price/mix (including excise

duty drawback) more than offset a 5.2% decline in volume. Volume share declined 80 bps with value share down 40 bps.

–Smokeless now represents 22.7% of total revenue.

Volume/Revenue

Please see page 49 for a full reconciliation to constant currency metrics, including prior year data.


For six months to 30 June 2026	Volume		Revenue
	Reported		Reported
			Current		Exchange	Constant
	Unit	vs 2025	£m	vs 2025	£m	£m	vs 2025
New Categories			816	+52.5%	30	846	+58.1%
Modern Oral (pouches bn)	3.2	+188%	315	+209%	12	327	+220%
Vapour (units mn)	141	+14.9%	501	+15.6%	18	519	+19.8%
HP (sticks bn)	—	—%	—	—%	—	—	—%
Traditional Oral (stick eq bn)	2.2	-12.4%	477	-8.5%	17	494	-5.2%
Total Smokeless			1,293	+22.4%	47	1,340	+26.9%
Total Combustibles (bn sticks)	20	-5.2%	4,383	+1.3%	159	4,542	+5.0%
Other			11	-78.4%	—	11	-77.6%
Total			5,687	+4.7%	206	5,893	+8.5%

Constant currency measures are calculated based upon a re-translation, at the prior year's exchange rates, of the current year's results of the Group and, where applicable, its segments.

The preparation of the U.S. financial information is initially based on U.S. GAAP as the primary financial record and converted to IFRS for the purpose of consolidation within the results of

the Group.

Reported revenue increased 4.7%, despite a translational foreign exchange headwind negatively impacting revenue by 3.8%.

On a constant currency basis, revenue increased 8.5%. This was driven by the performance in:

–Combustibles, where revenue increased 5.0%, as price/mix (including excise duty drawback) of +10.2% and short-term

inventory movements more than offset a 5.2% reduction in volume. This was higher than the industry volume decline of 4.0%,

as our volume was negatively impacted by the growth in the low value segment where we are under-represented. Our value

share was down 40 bps with volume share down 80 bps driven by Newport and Lucky Strike. However, our volume share has

started to stabilise during H1 2026;

–Modern Oral, where revenue increased by 220%, driven by higher volume (up 188%) following the continued growth of Velo

Plus and Grizzly Modern Oral, with our volume share of Modern Oral up 11.6 ppts to 29.8%. We expect our performance to be

further enhanced by the planned roll-out of Velo Max which is expected to commence in the second half of 2026.

–Vapour, where the U.S. is the world's largest Vapour market. The Group extended its value share leadership (of Vapour closed

systems consumables in tracked channels) with Vuse increasing value share by 4.1 ppts to 55.9%. Revenue grew 19.8% driven

by higher volume (up 14.9%, partly due to changes in the competitor landscape in H2 2025 and the positive impact from

progress in State level enforcement against illicit single-use vapour products) and price/mix (+4.9%). We expect our

performance to be further enhanced as we roll out a select range of adult-focused Vuse flavours in the second half of 2026; and

–Traditional Oral, where revenue declined 5.2%, as price/mix (+7.2%) was more than offset by lower volume (down 12.4%), due to

the continued cross-category use of Modern Oral.

Profit from operations and operating margin

Please see page 57 for a full reconciliation to constant currency metrics, including prior year data.


For six months to 30 June 2026	Reported		Adj.	Exchange	Adjusted
	Current				Constant
	£m	vs 2025	£m	£m	£m	vs 2025
Profit from Operations	2,595	+15.0%	652	124	3,371	+10.1%
Operating Margin	45.6%	+4.1 ppts			57.2%	+80 bps

Constant currency measures are calculated based upon a re-translation, at the prior year's exchange rates, of the current year's results of the Group and, where applicable, its segments.

Reported profit from operations increased by 15.0%, partly due to a credit of £149 million as the Group settled historical litigation

with ITG Brands. Accordingly, reported operating margin was up 4.1 ppts to 45.6%.

Excluding adjusting items (largely in respect of the credit above and amortisation charges in both periods) and a translational

foreign exchange headwind of £124 million, our performance was positively impacted by the growth in revenue (described above).

Adjusted profit from operations, at constant rates of exchange was up 10.1% to £3,371 million.


BAT Interim Announcement 2026	Summary	Performance Review	Financial Statements	Other Information	Data Lake and Reconciliations

Regional Review

Continued

Americas and Europe (AME):

–Reported revenue up 2.8%, up 0.9% at constant rates.

–New Category revenue increased 5.0%, up 1.9% at constant rates.

–Resilient combustibles revenue performance - up 4.0%, up 2.5% at constant rates as price/mix (+8.7%) more than offset a 6.2%

reduction in volume.

–Combustibles volume share flat and value share down 20 bps.

–Multi-category region with Smokeless now representing 20.2% of revenue.

Volume/Revenue

Please see page 49 for a full reconciliation to constant currency metrics, including prior year data.


For six months to 30 June 2026	Volume		Revenue
	Reported		Reported
			Current		Exchange	Constant
	Unit	vs 2025	£m	vs 2025	£m	£m	vs 2025
New Categories			874	+5.0%	(27)	847	+1.9%
Modern Oral (pouches bn)	3.9	+18.9%	440	+26.5%	(17)	423	+21.8%
Vapour (units mn)	108	-3.6%	235	-11.9%	(5)	230	-13.9%
HP (sticks bn)	3.8	-2.8%	199	-8.8%	(5)	194	-10.8%
Traditional Oral (stick eq bn)	0.3	+12.2%	17	-18.0%	(1)	16	-22.5%
Total Smokeless			891	+4.4%	(28)	863	+1.3%
Total Combustibles (bn sticks)	108	-6.2%	3,345	+4.0%	(48)	3,297	+2.5%
Other			166	-21.3%	(7)	159	-25.6%
Total			4,402	+2.8%	(83)	4,319	+0.9%

Constant currency measures are calculated based upon a re-translation, at the prior year's exchange rates, of the current year's results of the Group and, where applicable, its segments.

Reported revenue increased 2.8% partly due to a translational foreign exchange tailwind of 1.9%.

On a constant currency basis, which we believe reflects the operational performance, revenue was up 0.9% to £4,319 million, driven by:

–Higher revenue from combustibles (up 2.5%), largely driven by Türkiye (led by pricing and further growth in volume) and pricing

across a number of markets, including Brazil and Mexico, partially offset by lower volume in Brazil and Mexico. These factors

combined to more than offset a reduction in revenue in Germany (resulting from higher investment due to competitive

intensity and the growth in trade labels in which the Group is not present), the exit from Cuba and lower volume in Romania and

Ukraine; and

–Modern Oral, as volume was up 18.9% driving revenue up 21.8%. While volume share of the Modern Oral category was down 10

bps, we retained category leadership in our Top markets (as defined on page 46).

The volume and revenue growth reflects the strength of our portfolio in both established oral markets across Scandinavia and

markets with less of an established oral tradition, such as the UK and Poland.

These were partly offset by:

–Lower revenue from Vapour (down 13.9%), largely driven by regulatory changes in Poland, more than offsetting early signs of

progress with Vuse Ultra in the premium segment. Our value share leadership was down 1.7 ppts with value share losses driven by

heightened competition in the growing rechargeable closed systems category in Europe and Canada, with the latter also

impacted by an increase in illicit volume; and

–HP (down 10.8%), as higher revenue in Romania was more than offset by lower revenue in Poland (driven by increased

competition) and in Italy as the Group invested in retail activation as part of the roll-out of glo Hilo and glo Hyper Pro+.

Profit from operations and operating margin

Please see page 57 for a full reconciliation to constant currency, including prior year data.


For six months to 30 June 2026	Reported		Adj.	Exchange	Adjusted
	Current				Constant
	£m	vs 2025	£m	£m	£m	vs 2025
Profit from Operations	1,212	-38.4%	259	(28)	1,443	-2.1%
Operating Margin	27.5%	-18.5 ppts			33.4%	-100 bps

Constant currency measures are calculated based upon a re-translation, at the prior year's exchange rates, of the current year's results of the Group and, where applicable, its segments.

Reported profit from operations declined 38.4% as the Group recognised a lower net credit of £38 million (30 June 2025: £575

million) in respect of the provision related to the Canadian litigation settlement described on page 26 and a net loss of £12 million

in respect of the Group's exit from Cuba. This was partly offset by a translational foreign exchange tailwind.

Excluding the impact of foreign exchange and adjusting items, adjusted profit from operations was down 2.1% to £1,443 million

as growth in Brazil (driven by combustibles pricing), Türkiye (driven by combustibles volume and pricing) and Scandinavia (driven

by Modern Oral) was more than offset by Germany (discussed above), the investment in Italy (related to HP) and Romania (due to

lower combustibles volume and investments in HP).

Included within the above was £109 million (30 June 2025: £154 million) related to the Canadian business' net income after taxes

(excluding New Categories) that forms the payment amounts to claimants as part of the settlement agreement.


BAT Interim Announcement 2026	Summary	Performance Review	Financial Statements	Other Information	Data Lake and Reconciliations

Regional Review

Continued

Asia-Pacific, Middle East and Africa (APMEA):

–Reported revenue declined 8.9%, a decrease of 6.3% at constant rates.

–New Category revenue declined 16.0% (down 10.3% at constant rates), with HP down 19.4% (down 12.5% at constant rates)

largely due to inventory movements and heightened competition in Japan.

–Headwinds to combustibles volume and financial performance due to the challenging regulatory environment and the impact of

illicit combustibles volume in Bangladesh and Australia, the timing of inventory movements in Vietnam (driven by regulatory

changes that were implemented in 2025) and lower volume in Malaysia, which more than offset higher revenue in Pakistan (led by

pricing and a return to volume growth).

–Combustibles value share down 30 bps with volume share down 20 bps, mainly driven by Japan.

–Smokeless now represents 11.1% of total revenue.

Volume/Revenue

Please see page 49 for a full reconciliation to constant currency metrics, including prior year data.


For six months to 30 June 2026	Volume		Revenue
	Reported		Reported
			Current		Exchange	Constant
	Unit	vs 2025	£m	vs 2025	£m	£m	vs 2025
New Categories			238	-16.0%	16	254	-10.3%
Modern Oral (pouches bn)	0.7	+27.5%	29	+37.4%	1	30	+43.2%
Vapour (units mn)	14	-20.2%	27	-25.6%	(1)	26	-28.2%
HP (sticks bn)	5.1	-18.0%	182	-19.4%	16	198	-12.5%
Traditional Oral (stick eq bn)	—	—%	—	—%	—	—	—%
Total Smokeless			238	-16.0%	16	254	-10.3%
Total Combustibles (bn sticks)	95	-2.8%	1,833	-7.0%	44	1,877	-4.8%
Other			75	-26.9%	1	76	-24.9%
Total			2,146	-8.9%	61	2,207	-6.3%

Constant currency measures are calculated based upon a re-translation, at the prior year's exchange rates, of the current year's results of the Group and, where applicable, its segments.

Reported revenue declined 8.9%, negatively impacted by a translational foreign exchange headwind of 2.6%.

On a constant currency basis, which we believe reflects the operational performance, revenue was down 6.3% to £2,207 million.

Modern Oral was up 43.2%, fuelled by growth in Japan, Pakistan, South Africa, Kenya, the United Arab Emirates and in Global

Travel Retail, demonstrating Modern Oral's potential in the region.

However, this was more than offset by lower revenue in:

–Combustibles (down 4.8%), mainly due to the challenging regulatory environment and the impact of illicit volume in Bangladesh

and Australia, the timing of inventory movements in Vietnam (driven by regulatory changes that were implemented in 2025) and

lower volume in Malaysia, which more than offset higher revenue in Pakistan (led by pricing and a return to volume growth).

Specifically in Australia, we estimate the illicit combustibles segment now accounts for around 80% of the combustibles

industry volume, with the duty paid combustibles industry volume down more than 50% in the first half of 2026 (versus the same

period in 2025);

–Vapour, as volume declined 20.2%, leading to a 28.2% reduction in revenue, largely due to the Group's exit from the category in

low revenue markets (Indonesia and South Korea) as the Group prioritises investment to drive Quality Growth; and

–HP (down 12.5%), largely due to inventory movements and heightened competition in Japan.

Profit from operations and operating margin

Please see page 57 for a full reconciliation to constant currency metrics, including prior year data.


For six months to 30 June 2026	Reported		Adj.	Exchange	Adjusted
	Current				Constant
	£m	vs 2025	£m	£m	£m	vs 2025
Profit from Operations	459	-45.7%	249	8	716	-16.5%
Operating Margin	21.4%	-14.5 ppts			32.4%	-4.0 ppts

Constant currency measures are calculated based upon a re-translation, at the prior year's exchange rates, of the current year's results of the Group and, where applicable, its segments.

Profit from operations was 45.7% lower, including a translational foreign exchange headwind of 0.9%.

Excluding adjusting items and translational foreign exchange, adjusted profit from operations at constant rates was down 16.5%

to £716 million driven by:

–Japan, impacted by lower revenue and higher investment in HP;

–Australia due to the lower revenue discussed above; and

–Vietnam due to inventory movements discussed above.

However, these were partly offset by an increase in Pakistan, which was positively impacted by combustibles pricing and

growing combustibles volume.


BAT Interim Announcement 2026	Summary	Performance Review	Financial Statements	Other Information	Data Lake and Reconciliations

Category Performance Review

Modern Oral

–Revenue up 66.6%, or 65.9% at constant rates, with volume growth of 57.5%.

–Extended global category leadership with volume share* up 8.4 ppts.

–AME volume share* leadership maintained, led by strong performances in Sweden and Denmark.

–In the U.S., volume was up 188%, with revenue up 209% (up 220% at constant rates), driven by the growth of Velo Plus and

Grizzly Modern Oral.

In AME, volume was up 18.9%, driving revenue up 26.5% (or 21.8% at constant rates). While volume share of the Modern Oral

category was down 10 bps, we retained category leadership in our Top markets (as defined on page 46).

The volume and revenue growth reflects the strength of our portfolio in both established oral markets across Scandinavia and

markets with less of an established oral tradition, such as the UK and Poland.

In the U.S., revenue increased by 209% (or 220% at constant rates), driven by higher volume (up 188%) following the continued

growth of Velo Plus and Grizzly Modern Oral, with our volume share of Modern Oral up 11.6 ppts to 29.8%. We expect our

performance to be further enhanced by the planned roll-out of Velo Max which is expected to commence in the second half of 2026.

In APMEA, our volume grew 27.5% and our revenue grew 37.4% (or 43.2% at constant rates), fuelled by growth in Japan, Pakistan,

South Africa, Kenya, the United Arab Emirates and in Global Travel Retail, demonstrating Modern Oral's potential in the region.

*Volume share is based upon the Top Modern Oral markets which are defined as the Group's priority Top Modern Oral markets by industry revenue. Top Modern Oral markets are the U.S.,

Sweden, Denmark, Norway, Switzerland, the UK and Poland, accounting for c.90% of total addressable industry Modern Oral revenue in 2025.

Vapour

–Continued value share* leadership (in tracked channels) up 1.2 ppts, driven by Vuse in the U.S. (up 4.1 ppts to 55.9%).

–Vapour revenue up 3.6%, up 5.3% (at constant rates), with volume up 4.2%, driven by the U.S. but partially offset by

regulatory changes in Poland.

–In AME, Vapour value share down 1.7 ppts*, with industry rechargeable closed systems continuing to grow.

–Vuse Ultra, our new premium product, continued to be rolled out in H1 2026, with further roll-outs planned for H2 2026.

Group Vapour performance was driven by:

–The U.S., the world's largest Vapour market, with Vuse volume up 14.9% partly due to changes in the competitor landscape in

H2 2025 and the positive impact from progress in State level enforcement against illicit single-use vapour products and price/

mix (+4.9%).

Accordingly in the U.S., revenue was up 15.6% (or 19.8% on a constant currency basis). The Group extended its value share

leadership (of Vapour closed systems consumables in tracked channels) with Vuse increasing value share by 4.1ppts to 55.9%.

We expect our performance to be further enhanced as we roll out a select range of adult-focused Vuse flavours in the second

half of 2026.

This was partially offset by;

–AME, where revenue declined 11.9% (or 13.9% on a constant currency basis), largely driven by regulatory changes in Poland, more

than offsetting early signs of progress with Vuse Ultra in the premium segment. Our value share leadership was down 1.7 ppts

with value share losses driven by heightened competition in the growing rechargeable closed systems category in Europe and

Canada, with the latter also impacted by an increase in illicit volume; and

–APMEA, where volume declined 20.2%, leading to a 25.6% reduction in revenue (down 28.2% at constant rates), largely due to

the Group's exit from the category in low revenue markets (Indonesia and South Korea) as the Group prioritises investment to

drive Quality Growth.

Our new premium innovation, Vuse Ultra, offers consumers a highly differentiated, connected and customisable experience. We are

encouraged by the early performance in our launch markets and expect to continue the roll-out in a targeted way through H2 2026.

*Based on Vuse estimated value share in measured retail for Vapour (i.e., value share of rechargeable closed systems consumables and disposables sales in retail) in the Top global markets.

Top Vapour markets are defined as the Group's priority Top Vapour markets by industry revenue. Top Vapour markets are the U.S., Canada, the UK, France, Germany and Spain. These

Top Vapour markets account for c.70% of total addressable industry vapour revenue (rechargeable closed systems consumables and disposables in tracked channels) in 2025.

Heated Products (HP)

–Revenue down 14.2%, down 11.7% at constant rates, driven by Japan due to inventory movements and heightened

competition in the value segment.

–Volume share*, down 1.2 ppts, reflecting heightened competition in the value segment.

–AME volume share* down 70 bps with growth in Poland, Spain and Portugal, more than offset by Italy, Greece, Germany and

the Czech Republic.

–glo Hilo driving share growth (in premium/aspirational premium) in Japan, Poland and Italy and encouraging results in new

launch markets (Romania and Greece).

In APMEA, volume was down 18.0%, with revenue down 19.4%, a decrease of 12.5% at constant rates, largely due to inventory

movements and heightened competition in Japan.

In AME, volume was down 2.8%, with revenue down 8.8% (a decline of 10.8% at constant rates), as higher revenue in Romania

was more than offset by lower revenue in Poland (driven by increased competition) and in Italy as the Group invested in retail

activation as part of the roll-out of glo Hilo and glo Hyper Pro+.

We expect to further enhance our portfolio in H2 2026 with Hilo amplification in the premium segment and with Hyper

strengthening performance in the value segment through a phased roll-out of the Hyper Pro+ upgrade.

*Volume share is based upon the Top HP markets which are defined as the Group's priority Top HP markets by industry revenue. Top HP markets are Japan, South Korea, Italy, Germany,

Greece, Poland, Romania, the Czech Republic, Spain and Portugal. These Top HP markets account for c.80% of total addressable industry HP revenue in 2025.


BAT Interim Announcement 2026	Summary	Performance Review	Financial Statements	Other Information	Data Lake and Reconciliations

Category Performance Review

Continued

Combustibles

–Value share down 40 bps* and volume share down 30 bps*, as resilient volume share in AME (flat) was more than offset by

the U.S. (down 80 bps) and APMEA (down 20 bps).

–Revenue grew 0.5% (up 2.1% at constant rates) with higher category contribution driven by the U.S. and AME.

–Return to growth in the U.S., with revenue up 1.3% (or 5.0% at constant rates) as price/mix (including excise duty

drawback) more than offset volume decline (down 5.2%).

–Resilient AME performance with revenue up 4.0%, or up 2.5% at constant rates, driven by Brazil and Türkiye, partly offset by

Germany and Romania and the exit from Cuba.

–APMEA revenue declined 7.0%, or 4.8% at constant rates, with volume down 2.8%, driven by lower volume in Bangladesh and

Australia, the timing of inventory movements in Vietnam (driven by regulatory changes that were implemented in 2025) and lower

volume in Malaysia, which more than offset higher revenue in Pakistan (led by pricing and a return to volume growth).

Revenue from combustibles increased 0.5% to £9,561 million. Our performance was negatively impacted by a translational

foreign exchange headwind, with revenue up 2.1% at constant rates as continued robust price/mix of +6.8% was partly offset by

lower volume (down 4.7%).

Group cigarette volume was down 4.6% to 218 billion sticks as volume growth in Pakistan and Türkiye was more than offset by

lower volume in a number of markets, mainly driven by the U.S., Bangladesh, Malaysia, Romania and Ukraine, inventory

movements in Vietnam (due to regulatory changes implemented in 2025) and market exits (including Cuba and Mozambique).

Excluding the impact of translational foreign exchange:

–In the U.S., revenue increased 5.0%, as price/mix (including excise duty drawback) of +10.2% and short-term inventory

movements more than offset a 5.2% reduction in volume. This was higher than the industry volume decline of 4.0%, as our

volume was negatively impacted by the growth in the low value segment where we are under-represented. Our value share

was down 40 bps with volume share down 80 bps driven by Newport and Lucky Strike. However, our volume share has started

to stabilise during H1 2026;

–In AME, higher revenue (up 2.5%) was largely driven by Türkiye (led by pricing and further growth in volume) and pricing across a

number of markets, including Brazil and Mexico, partially offset by lower volume in Brazil and Mexico. These factors combined

to more than offset a reduction in revenue in Germany (resulting from higher investment due to competitive intensity and the

growth in trade labels in which the Group is not present), the exit from Cuba and lower volume in Romania and Ukraine; and

–In APMEA, revenue declined 4.8% due to the challenging regulatory environment and the impact of illicit volume in Bangladesh

and Australia, the timing of inventory movements in Vietnam (driven by regulatory changes that were implemented in 2025) and

lower volume in Malaysia, which more than offset higher revenue in Pakistan (led by pricing and a return to volume growth).

*Volume and value share are based upon the Top cigarette markets which are defined as the Group's priority Top cigarette markets by industry revenue. Top cigarette markets are the U.S.,

Japan, Brazil, Germany, Pakistan, Mexico and Romania, accounting for c.50% of total addressable industry cigarette revenue in 2025.

Traditional Oral

Group volume declined 9.6% to 2.5 billion stick equivalents. Total revenue was £494 million (30 June 2025: £542 million), down

8.8% (or 5.8% at constant rates).

In the U.S., which accounts for 97% of the Group's revenue from the category, revenue declined 8.5% or 5.2% at constant rates,

as price/mix (+7.2%) was more than offset by lower volume (down 12.4%), due to the continued cross-category use of Modern

Oral.

Value share in the U.S. decreased 40 bps, with volume share down 60 bps, negatively impacted by continued consumer

migration predominantly in the aspirational premium segment, where Grizzly is positioned.

Outside the U.S., revenue declined 18.0%, or 22.5% at constant rates of exchange, largely due to the performance of Granit in

Sweden.

Beyond Nicotine

Btomorrow Ventures has completed over 30 investments since its launch in 2020 and through the Group’s £350 million

commitment towards the corporate venture capital fund. It invests to support the Group’s transformational journey to A Better

Tomorrow™ focusing predominantly on Smokeless nicotine products, technology and capability enablers, sustainability and

Wellbeing and Stimulation.

The Group has also continued its exploration in the Wellbeing and Stimulation category with Ryde: functional shots now selling in

the U.S. (through national online sales and retail primarily in Texas), in addition to Australia and Canada.


BAT Interim Announcement 2026	Summary	Performance Review	Financial Statements	Other Information	Data Lake and Reconciliations

Other Financial Information

Cash flow

We continue to make good progress on de-leveraging our balance sheet, driven by continued strong cash generation.

Cash flow is typically weighted to the second half of the year.

Our active capital allocation framework considers the continued investment in our transformation, the macro-environment, and

potential future litigation and regulatory outcomes.

We understand the importance of cash returns to shareholders, and remain committed to our progressive dividend based upon

65% of long-term sustainable earnings.


	For six months to 30 June
	2026	2025	Change
	£m	£m	%
Net cash generated from operating activities	3,402	2,309	47.3%




	As at 30 June
	2026	2025	Change
	£m	£m	%
Borrowings (including lease liabilities)	(35,063)	(35,208)	-0.4%

In the Group’s cash flow statement, prepared in accordance with IFRS and presented on page 22, net cash generated from

operating activities increased by 47.3% to £3,402 million. This was largely due to:

–lower payments in respect of the Franked Investment Income Group Litigation Order (FII GLO) of £111 million (of which

£44 million was in respect of the principal, impacting net cash generated from operating activities, and £67 million was in

respect of interest paid) compared to £368 million in the first six months of 2025, discussed on page 36;

–lower tax paid as the first six months of 2025 included the net impact of the tax deferrals in the U.S. of £491 million

(US$624 million) which did not repeat. Tax payments in the U.S. of £700 million (US$895 million) were deferred from 2024 to

2025, partly offset by deferral of £209 million (US$271 million) from the first half of 2025 to the second half of 2025; and

–the receipt, in the first six months of 2026, of £149 million (US$200 million) from ITG Brands, LLC (ITG) in settlement of a

dispute 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.


BAT Interim Announcement 2026	Summary	Performance Review	Financial Statements	Other Information	Data Lake and Reconciliations

Other Financial Information

Continued

Borrowings and net debt

Borrowings (which includes lease liabilities) were £35,063 million at 30 June 2026, a decrease of 0.4% compared to £35,208

million at 30 June 2025 (31 December 2025: £35,070 million).

The Group remains confident of its ability to access the debt capital markets successfully and reviews its options on a continuing

basis.

The Group’s average centrally managed debt maturity of bonds was 9.3 years at 30 June 2026 (30 June 2025: 10.0 years; 31

December 2025: 9.5 years), and the highest proportion of centrally managed debt maturing in a single rolling 12-month period

was 15.1% (30 June 2025: 15.3%; 31 December 2025: 15.1%).

The Group defines net debt as borrowings (including related derivatives and lease liabilities), less cash and cash equivalents

(including restricted cash) and current investments held at fair value. Closing net debt was £32,555 million at 30 June 2026 (30

June 2025: £30,342 million; 31 December 2025: £31,215 million).

A reconciliation of borrowings to net debt is provided below.


	As at 30 June			As at 31 December
	2026	2025	Change	2025
	£m	£m	%	£m
Borrowings (including lease liabilities)	(35,063)	(35,208)	-0.4%	(35,070)
Derivatives in respect of net debt	(25)	(27)	-7.4%	12
Cash and cash equivalents	2,518	4,404	-42.8%	3,827
Current investments held at fair value	15	489	-96.9%	16
Net debt	(32,555)	(30,342)	+7.3%	(31,215)
Maturity profile of net debt:
Net debt due within one year	(1,360)	1,573	n/m	492
Net debt due beyond one year	(31,195)	(31,915)	-2.3%	(31,707)
Net debt	(32,555)	(30,342)	+7.3%	(31,215)

Impacting the carrying value of net debt are:

–Cash payments largely related to share schemes and investing activities of £268 million (30 June 2025: £47 million);

–The purchase of £649 million (30 June 2025: £450 million) of own shares under the Group’s 2026 and 2025 share buy-back

programmes;

–Other non-cash movements of £267 million (30 June 2025: £120 million); and

–Foreign exchange impacts related to the revaluation of foreign currency denominated net debt balances which was a net

headwind of £341 million (30 June 2025: £1,611 million tailwind).

Included within both cash payments and other non-cash movements (above) is the classification of Cuba which was held-for-

sale at 31 December 2025 (£208 million) and subsequently sold in 2026.

In the six months ended 30 June 2025, net debt was also impacted by net proceeds of £1,052 million from the partial

monetisation of our investment in ITC in that period.

Investments held at fair value through profit and loss above include restricted amounts of £nil (30 June 2025: £427 million; 31

December 2025: £nil) in respect of investments held by subsidiaries in CCAA protection as well as £nil (30 June 2025: £17 million;

31 December 2025: £nil) subject to potential exchange control restrictions.

Cash and cash equivalents include restricted amounts of £386 million (30 June 2025 £2,047 million; 31 December 2025: £268 million)

in Canada which, due to ongoing restrictions associated with the Approved Plans in Canada, continue to be considered restricted

and £73 million (30 June 2025: £255 million; 31 December 2025: £67 million) principally due to exchange control restrictions.


BAT Interim Announcement 2026	Summary	Performance Review	Financial Statements	Other Information	Data Lake and Reconciliations

Other Financial Information

Continued

Foreign currencies

The principal exchange rates used to convert the results of the Group’s foreign operations to pounds 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.

The principal exchange rates used were as follows:


	Average for the period ended			As at
	30 June		31 December	30 June		31 December
	2026	2025	2025	2026	2025	2025
Australian dollar	1.915	2.045	2.045	1.916	2.091	2.017
Bangladeshi taka	165.056	158.273	160.886	163.517	168.176	164.432
Brazilian real	6.930	7.468	7.363	6.870	7.479	7.371
Canadian dollar	1.854	1.828	1.842	1.883	1.870	1.844
Chilean peso	1,201.588	1,238.902	1,253.837	1,223.851	1,279.119	1,212.663
Euro	1.153	1.187	1.167	1.161	1.167	1.145
Indian rupee	125.277	111.763	114.989	125.636	117.521	120.892
Japanese yen	212.718	192.489	197.243	215.711	197.940	210.830
Romanian leu	5.931	5.939	5.885	6.082	5.929	5.834
South African rand	22.076	23.859	23.562	21.754	24.353	22.287
Swiss franc	1.058	1.118	1.094	1.071	1.091	1.066
US dollar	1.345	1.298	1.319	1.327	1.370	1.345

Other Information

Risks and uncertainties

The Board carried out a robust assessment of the Principal Risks and uncertainties facing the Group for the period, including

those that would threaten its business model, future performance, solvency, liquidity and viability. The Board also maintained

close oversight of the Group’s response to critical external uncertainties, recognising current macro-economic and geopolitical

challenges.

All Group risks are reviewed biannually by the Audit Committee and annually by the Board.

Leading in Sustainability is a core component and key building block of our corporate strategy and sustainability risk factors are

embedded across the Group's risks in accordance with the management of these risks within the Group.

The Principal Risks facing the Group are summarised under the headings of:

–Competition from illicit trade;

–Geopolitical tensions;

–Tobacco, New Categories and other regulation interrupts the growth strategy;

–Supply chain disruption;

–Litigation and external investigations;

–Significant increases or structural changes in tobacco, nicotine and New Categories related taxes;

–Inability to develop, commercialise and deliver the New Categories strategy;

–Disputed taxes, interest and penalties;

–Injury, illness or death in the workplace;

–Solvency and liquidity;

–Foreign exchange rate exposures;

–Climate change;

–Circularity; and

–Digital & Cyber.

A summary of the Principal Risks which are monitored by the Board through the Group’s risk register is set out on pages 166 to

175 of the Group’s Annual Report and Accounts for the year ended 31 December 2025 and a summary of the risk factors is set out

in Item 3.D - Risk Factors of the Group's annual report for the year ended 31 December 2025 on Form 20-F (the "2025 Form 20-F").

All the Group’s risks should be read in the context of the forward-looking statements on page 44 of this Half-Year Report.


BAT Interim Announcement 2026	Summary	Performance Review	Financial Statements	Other Information	Data Lake and Reconciliations

Other Information

Continued

Conflict in the Middle East

We are closely monitoring developments in the Middle East. There is no significant impact on the Group at this time, and we have

comprehensive business continuity plans in place to manage cost and supply-chain pressures. However, the broader

macroeconomic and geopolitical backdrop is dynamic, increasing the risk of volatility in consumer sentiment should uncertainty

persist.

Update on investigations into misconduct allegations

On 25 April 2023, the Group announced that it had reached agreement with the U.S. Department of Justice (DOJ) and Office of

Foreign Assets Control (OFAC) to resolve previously disclosed investigations into suspicions of breaches of sanctions relating to

the Democratic People’s Republic of Korea between 2007 and 2017. On 11 May 2026, the DOJ filed a motion to dismiss the legal

proceedings against the Company, noting that the Company fully complied with the terms of the three-year deferred

prosecution agreement, and the court entered an order dismissing the proceedings with prejudice the same day. The three-year

probationary period imposed by the court on a BAT subsidiary in Singapore, British-American Tobacco Marketing (Singapore)

Private Limited (BATMS), in connection with the subsidiary’s entry of a guilty plea in the same proceedings has also now expired.

The Company’s compliance commitments under the civil settlement with OFAC remain in place until 2028.

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, including by OFAC, which is investigating suspicions of breaches of sanctions. The Group cooperates with the

authorities, where appropriate.

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.

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.

Operational and process review

To further support our transformation and underpin investment initiatives to drive long-term sustainable profit and cash flow

growth, we are undertaking a structured time-bound programme (referred to as Fit2Win) to review processes and ways of

working which will generate efficiencies and facilitate faster, more agile and effective decision making.

Having commenced in 2025, the programme is expected to complete in 2027 and includes a comprehensive review of our

overhead optimisation opportunities, route to market and digitalisation in order to deliver more effective, data-driven digital ways

of working. The programme has also undertaken a global bottom-up review of our manufacturing assets and machinery, which

will facilitate an upgrade to more efficient, next generation technologies to support our ongoing transformation. Accordingly, we

have recognised an additional one-off, non-cash expense/charge of £228 million in 2026. During H1 2026, the programme has

also identified additional potential optimisation opportunities, with a further £100 million of costs expected to be incurred over

the life of the programme.

Including the above, we now expect associated one-off costs of approximately £950 million (being non-cash items of £330 million

and cash items of £620 million), with c.£840 million expected to be treated as adjusting items within adjusted profit from

operations.

By 30 June 2026, total costs of £482 million have been incurred since the programme commenced in 2025, with £459 million

treated as adjusting items within profit from operations, of which £370 million was recognised in the six months ended 30 June

2026.

The programme is expected to generate annualised cost efficiencies and cash flow which will be re-invested to support further

sustainable growth initiatives. By 30 June 2026, savings of c.£105 million have been realised.

Changes in the Group

Cuba

As disclosed on page 328 of the Group’s Annual Report and Accounts for the year ended 31 December 2025 and page 170 of the

2025 Form 20-F, the Group entered into an agreement to sell its 50% shareholding in Brascuba Cigarrillos S.A. (Brascuba), its

operating entity in the Republic of Cuba (Cuba), to Tabagest S.A. (Tabagest), a company incorporated in Cuba and an existing

investor in Brascuba. Completion occurred in February 2026, at which point, the business was deconsolidated from the Group’s

balance sheet. However, as the Cuban business was not significant to the users' understanding of that year or subsequent years

financial performance, Management did not treat the sale of Cuban business as an organic adjustment.

The net charge to the income statement in relation to the disposal of Brascuba was £12 million and includes the reclassification

of foreign exchange losses previously recognised in the statement of comprehensive income of £4 million.

ITC Ltd (ITC)

As previously disclosed, in the six months ended 30 June 2025, the Group recognised:

–a gain of £333 million (net of tax) related to the demerger of ITC's hotel business; and

–a provisional gain of £904 million related to the disposal of 313.0 million shares in ITC (being 2.5% of ITC's ordinary shares). The

Group received net proceeds of £1,052 million in 2025.

Both were treated as adjusting items in 2025, with no comparable transactions in 2026.


BAT Interim Announcement 2026	Summary	Performance Review	Financial Statements	Other Information	Data Lake and Reconciliations

Other Information

Continued

Changes in the Group (continued)

Organigram Global Inc. (Organigram)

In February 2026, Organigram announced the acquisition of Sanity Group GmbH (Sanity). As previously disclosed, prior to the

acquisition;

–the Group's ownership of Organigram was 36.77%, with voting rights restricted to 30%; and

–the Group ownership of Sanity was 16.32%.

Under the terms of the acquisition, the Group sold its holding in Sanity in exchange for shares in Organigram; in addition, the

Group subscribed to c.12% of the issued and outstanding share capital in Organigram for £35 million (CAD$65 million).

Post acquisition, the Group retains no continuing involvement in Sanity other than through its investment in Organigram.

Further, at 30 June 2026, the Group's shareholding in Organigram was 48.7% and may change, subject to certain earnout

provisions in relation to Organigram's acquisition of Sanity. However, there was no change to the Group's voting rights which

remain restricted to 30%.

Other associates

In May 2026, the Group completed the conversion of a loan to Charlotte’s Web Holdings into ordinary shares, concurrently

making an additional equity investment of £7 million (US$10 million).

Changes to the Board and Management Board

As previously disclosed, the following Board changes have taken place:

–Dragos Constantinescu has been appointed to the role of Chief Financial Officer and Executive Director and will join the Board and

Management Board with effect from 1 September 2026;

–Holly Keller Koeppel stepped down from the Board at the conclusion of the 2026 Annual General Meeting (AGM); and

–Karen Guerra was appointed as Senior Independent Director with effect from the conclusion of the 2026 AGM, when Holly

Keller Koeppel stepped down from the Board.

Going concern

A description of the Group’s business activities, its financial position, cash flows, liquidity position, facilities and borrowings

position, together with the factors likely to affect its future development, performance and position, as well as risks associated

with the business, are set out in the Strategic Report and in the Notes on the Accounts, all of which are included in the Group's

Annual Report and Accounts for the year ended 31 December 2025 and Item 5 - Operating and financial review and prospects of

the 2025 Form 20-F, and available on the Group's website, www.bat.com.

This Half-Year Report provides updated information regarding the business activities, including cash flow, for the six months to

30 June 2026 and of the financial position and liquidity position at 30 June 2026.

The Group has, at the date of this announcement, sufficient existing financing available for its estimated requirements for at least

12 months from the date of approval of this condensed consolidated financial information. This, together with the ability to

generate cash from trading activities, the performance of the Group’s Strategic Portfolio, its leading market positions in a

number of countries and its broad geographical spread, as well as numerous contracts with established customers and suppliers

across different geographical areas and industries, provides the Directors with the confidence that the Group is well placed to

manage its business risks successfully through the ongoing uncertainty, the current macro-economic financial conditions and

the general outlook in the global economy.

After reviewing the Group’s forecast financial performance and financing arrangements, the Directors consider that the Group

has adequate resources to continue operating for at least 12 months from the date of approval of this condensed consolidated

financial information and that it is therefore appropriate to continue to adopt the going concern basis in preparing this Half-Year

Report.


BAT Interim Announcement 2026	Summary	Performance Review	Financial Statements	Other Information	Data Lake and Reconciliations

Interim Financial Statements (unaudited)

Continued

Group Statement of Comprehensive Income


	Six months ended 30 June
	2026	2025
	£m	£m
Profit for the period (page 17)	3,228	4,565
Other comprehensive income (OCI)
Items that may be reclassified subsequently to profit or loss:	596	(4,255)
Foreign currency translation and hedges of net investments in foreign operations
– differences on exchange from translation of foreign operations	493	(4,360)
– reclassified and reported in profit for the period	134	—
– net investment hedges - net fair value gains on derivatives	17	221
– net investment hedges - differences on exchange on borrowings	5	(13)
Cash flow hedges
– net fair value gains/(losses)	23	(45)
– reclassified and reported in profit for the period	(14)	23
– tax on net fair value (losses)/gains in respect of cash flow hedges	(8)	7
Associates
– share of OCI, net of tax	(54)	(135)
– differences on exchange reclassified to profit or loss	—	47
Items that will not be reclassified subsequently to profit or loss:	(26)	(6)
Retirement benefit schemes
– net actuarial gains/(losses)	43	(37)
– movements in surplus restrictions	(7)	(39)
– tax on actuarial gains/(losses) and movements in surplus restrictions	(21)	5
Investments held at fair value
– net fair value (losses)/gains	(26)	70
Associates – share of OCI, net of tax	(15)	(5)
Total other comprehensive income/(expense) for the period, net of tax	570	(4,261)
Total comprehensive income for the period, net of tax	3,798	304

Attributable to:
Owners of the parent	3,758	279
Non-controlling interests	40	25
	3,798	304

The accompanying notes on pages 23 to 36 form an integral part of this condensed consolidated financial information.


BAT Interim Announcement 2026	Summary	Performance Review	Financial Statements	Other Information	Data Lake and Reconciliations

Interim Financial Statements (unaudited)

Continued

Group Statement of Changes in Equity


At 30 June 2026	Attributable to owners of the parent
	Share capital	Share premium, capital redemption and merger reserves	Other reserves	Retained earnings	Total attributable to owners of parent	Perpetual hybrid bonds	Non- controlling interests	Total equity
	£m	£m	£m	£m	£m	£m	£m	£m
Balance at 1 January 2026	577	26,675	(4,148)	22,929	46,033	1,893	219	48,145
Total comprehensive income for the period comprising: (page 18)	—	—	553	3,205	3,758	—	40	3,798
Profit for the period (page 17)	—	—	—	3,190	3,190	—	38	3,228
Other comprehensive income for the period (page 18)	—	—	553	15	568	—	2	570
Other changes in equity
Cash flow hedges reclassified and reported in total assets	—	—	17	—	17	—	—	17
Employee share options
–value of employee services	—	—	—	41	41	—	—	41
–proceeds from new shares issued	—	3	—	—	3	—	—	3
–treasury shares used for share option schemes	—	—	—	—	—	—	—	—
Dividends and other appropriations
–ordinary shares	—	—	—	(2,634)	(2,634)	—	—	(2,634)
–to non-controlling interests	—	—	—	—	—	—	(76)	(76)
Purchase of own shares
–held in employee share ownership trusts	—	—	—	(102)	(102)	—	—	(102)
–share buy-back programme and cancelled shares	(4)	4	—	(649)	(649)	—	—	(649)
Perpetual hybrid bonds
–coupons paid	—	—	—	(6)	(6)	—	—	(6)
–tax on coupons paid	—	—	—	1	1	—	—	1
Non-controlling interests - disposals	—	—	—	—	—	—	33	33
Other movements non-controlling interests	—	—	—	—	—	—	—	—
Reclassification of equity relating to assets held-for-sale	—	—	—	—	—	—	—	—
Other movements	—	—	—	24	24	—	—	24
Balance at 30 June 2026	573	26,682	(3,578)	22,809	46,486	1,893	216	48,595

The accompanying notes on pages 23 to 36 form an integral part of this condensed consolidated financial information.


BAT Interim Announcement 2026	Summary	Performance Review	Financial Statements	Other Information	Data Lake and Reconciliations

Interim Financial Statements (unaudited)

Continued

Group Statement of Changes in Equity (continued)


At 30 June 2025	Attributable to owners of the parent
	Share capital	Share premium, capital redemption and merger reserves	Other reserves	Retained earnings	Total attributable to owners of parent	Perpetual hybrid bonds	Non- controlling interests	Total equity
	£m	£m	£m	£m	£m	£m	£m	£m
Balance at 1 January 2025	585	26,665	(902)	21,610	47,958	1,685	352	49,995
Total comprehensive (expense)/income for the period comprising: (page 18)	—	—	(4,160)	4,439	279	—	25	304
Profit for the period (page 17)	—	—	—	4,512	4,512	—	53	4,565
Other comprehensive expense for the period (page 18)	—	—	(4,160)	(73)	(4,233)	—	(28)	(4,261)
Other changes in equity
Cash flow hedges reclassified and reported in total assets	—	—	5	—	5	—	—	5
Employee share options
–value of employee services	—	—	—	35	35	—	—	35
–proceeds from new shares issued	—	1	—	—	1	—	—	1
–treasury shares used for share option schemes	—	1	—	(1)	—	—	—	—
Dividends and other appropriations
–ordinary shares	—	—	—	(2,609)	(2,609)	—	—	(2,609)
–to non-controlling interests	—	—	—	—	—	—	(74)	(74)
Purchase of own shares
–held in employee share ownership trusts	—	—	—	(61)	(61)	—	—	(61)
–share buy-back programme and cancelled shares	(4)	4	—	(450)	(450)	—	—	(450)
Other movements	—	—	—	31	31	—	—	31
Balance at 30 June 2025	581	26,671	(5,057)	22,994	45,189	1,685	303	47,177

The accompanying notes on pages 23 to 36 form an integral part of this condensed consolidated financial information.


BAT Interim Announcement 2026	Summary	Performance Review	Financial Statements	Other Information	Data Lake and Reconciliations

Interim Financial Statements (unaudited)

Continued

Group Balance Sheet


	As at 30 June		As at 31 December
	2026	2025	2025
	£m	£m	£m
Assets
Intangible assets	87,087	86,223	86,934
Property, plant and equipment	4,222	4,159	4,483
Investments in associates and joint ventures	1,589	1,533	1,521
Retirement benefit assets	919	841	880
Deferred tax assets	2,058	2,434	2,032
Trade and other receivables	323	283	288
Investments held at fair value	263	737	333
Derivative financial instruments	4	141	135
Total non-current assets	96,465	96,351	96,606
Inventories	4,845	5,088	4,382
Income tax receivable	465	108	470
Trade and other receivables	3,845	3,475	3,802
Investments held at fair value	15	489	16
Derivative financial instruments	235	302	162
Cash and cash equivalents	2,518	4,404	3,827
	11,923	13,866	12,659
Assets classified as held-for-sale	—	9	25
Total current assets	11,923	13,875	12,684
Total assets	108,388	110,226	109,290
Equity – capital and reserves
Share capital	573	581	577
Share premium, capital redemption and merger reserves	26,682	26,671	26,675
Other reserves	(3,578)	(5,057)	(4,148)
Retained earnings	22,809	22,994	22,929
Owners of the parent	46,486	45,189	46,033
Perpetual hybrid bonds	1,893	1,685	1,893
Non-controlling interests	216	303	219
Total equity	48,595	47,177	48,145
Liabilities
Borrowings	31,045	31,904	31,708
Retirement benefit liabilities	787	769	801
Deferred tax liabilities	10,351	10,432	10,343
Other provisions for liabilities	3,141	3,212	3,161
Trade and other payables	35	586	484
Derivative financial instruments	156	150	124
Total non-current liabilities	45,515	47,053	46,621
Borrowings	4,018	3,304	3,362
Income tax payable	1,004	1,172	1,129
Other provisions for liabilities	599	3,089	608
Trade and other payables	8,576	8,243	9,328
Derivative financial instruments	81	188	91
	14,278	15,996	14,518
Liabilities associated with assets classified as held-for-sale	—	—	6
Total current liabilities	14,278	15,996	14,524
Total equity and liabilities	108,388	110,226	109,290

The accompanying notes on pages 23 to 36 form an integral part of this condensed consolidated financial information.


BAT Interim Announcement 2026	Summary	Performance Review	Financial Statements	Other Information	Data Lake and Reconciliations

Interim Financial Statements (unaudited)

Continued

Group Cash Flow Statement


	Six months ended 30 June
	2026	2025
	£m	£m
Cash flows from operating activities
Cash generated from operating activities (page 30)	4,487	3,717
Dividends received from associates	139	168
Tax paid	(1,224)	(1,576)
Net cash generated from operating activities	3,402	2,309
Cash flows from investing activities
Interest received	83	85
Dividends received	2	—
Purchases of property, plant and equipment	(134)	(103)
Proceeds on disposal of property, plant and equipment	8	21
Purchases of intangibles	(34)	(42)
Proceeds on disposal of intangibles	2	8
Purchases of investments	(27)	(59)
Proceeds on disposals of investments	37	73
Investment in associates and acquisitions of other subsidiaries net of cash acquired	(45)	(23)
Net proceeds from disposal of shares in associate, net of tax	—	1,052
Disposal of subsidiary, net of cash disposed of	(192)	—
Net cash (used in)/generated from investing activities	(300)	1,012
Cash flows from financing activities
Interest paid on borrowings and financing related activities	(905)	(879)
Interest element of lease liabilities	(19)	(21)
Capital element on lease liabilities	(91)	(95)
Proceeds from increases in and new borrowings	1,055	3,552
Reductions in and repayments of borrowings	(1,206)	(3,047)
Outflows relating to derivative financial instruments	(39)	(445)
Purchases of own shares - share buy-back programme	(649)	(450)
Purchases of own shares held in employee share ownership trusts	(102)	(61)
Coupon paid on perpetual hybrid bonds	(6)	—
Dividends paid to owners of the parent	(2,634)	(2,609)
Dividends paid to non-controlling interests	(70)	(63)
Other	3	1
Net cash used in financing activities	(4,663)	(4,117)
Net cash flows used in operating, investing and financing activities	(1,561)	(796)
Transferred from held-for-sale	208	—
Differences on exchange	34	(144)
Decrease in net cash and cash equivalents in the period	(1,319)	(940)
Net cash and cash equivalents at 1 January	3,787	5,104
Net cash and cash equivalents at period end	2,468	4,164
Cash and cash equivalents per balance sheet	2,518	4,404
Overdrafts and accrued interest	(50)	(240)
Net cash and cash equivalents at period end	2,468	4,164

The accompanying notes on pages 23 to 36 form an integral part of this condensed consolidated financial information.

The net cash flows relating to the adjusting items within profit from operations on pages 25 to 26, included in the above, are an inflow of

£10 million (30 June 2025: £430 million outflow).


BAT Interim Announcement 2026	Summary	Performance Review	Financial Statements	Other Information	Data Lake and Reconciliations

Notes to the Unaudited Interim Financial Statements

1. Accounting policies and basis of preparation

The condensed consolidated financial information comprises the unaudited interim financial information for the six months to 30

June 2026. The condensed consolidated financial information has been prepared in accordance with IAS 34 Interim Financial

Reporting as adopted for use in the UK and as issued by the International Accounting Standards Board (IASB), and the Disclosure

Guidance and Transparency Rules issued by the Financial Conduct Authority. The interim condensed consolidated financial

information is unaudited.

This condensed consolidated financial information does not constitute statutory accounts within the meaning of Section 434 of

the Companies Act 2006 and should be read in conjunction with the Group’s Annual Report and Accounts for the year ended 31

December 2025 and the 2025 Form 20-F, including the audited financial statements for the year ended 31 December 2025, which

were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting

Standards Board (IASB) and UK-adopted international accounting standards. UK-adopted international accounting standards

differ in certain respects from IFRS as issued by the IASB. The differences have no impact on the Group’s consolidated financial

statements for the periods presented.

The Group’s Annual Report and Accounts for the year ended 31 December 2025 represent the statutory accounts for that year

and have been filed with the Registrar of Companies.

These condensed consolidated financial statements have been prepared under the historical cost convention, except in respect

of certain financial instruments. They are prepared on a basis consistent with the IFRS accounting policies as set out in the

Group’s Annual Report for the year ended 31 December 2025 and the 2025 Form 20-F.

The preparation of these condensed 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 these condensed consolidated financial statements. 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 condensed consolidated financial statements. Other than in respect of certain

assumptions related to the assessment of the carrying value of goodwill and intangible assets, the key estimates and

assumptions were the same as those that applied to the consolidated financial information for the year ended 31 December

2025, apart from updating the assumptions used to determine the carrying value of liabilities for retirement benefit schemes. As

described on page 26, the Group has assessed whether there are any impairment triggers related to the carrying value of the

significant investments of goodwill and intangibles. Other than as reported in prior periods, no further impairment is required. In

the future, actual experience may deviate from these estimates and assumptions, which could affect these condensed

consolidated financial statements as the original estimates and assumptions are modified, as appropriate, in the period in which

the circumstances change.

After reviewing the Group’s forecast financial performance and financing arrangements, the Directors consider that the Group

has adequate resources to continue operating for at least 12 months from the date of approval of this condensed consolidated

financial information and that it is therefore appropriate to continue to adopt the going concern basis in preparing this Half-Year

Report.

2. Segmental analyses

Revenue by segment

The following table shows 2026 revenue at 2026 rates of exchange, and 2026 revenue translated using 2025 rates of exchange.

The 2025 figures are stated at the 2025 rates of exchange.


Six months ended 30 June	2026			2025
	Reported	Exchange	Reported at CC1	Reported
Revenue	£m	£m	£m	£m
U.S.	5,687	206	5,893	5,432
AME	4,402	(83)	4,319	4,281
APMEA	2,146	61	2,207	2,356
Total Region	12,235	184	12,419	12,069

Notes to the analysis of revenue above:

1.CC: constant currency – measures are calculated based upon a re-translation, at the prior year’s exchange rates, of the current year’s results of the Group and, where applicable, its segments.


BAT Interim Announcement 2026	Summary	Performance Review	Financial Statements	Other Information	Data Lake and Reconciliations

Notes to the Unaudited Interim Financial Statements (continued)

2. Segmental analyses (continued)

Profit from operations by segment

The following table shows 2026 profit from operations and adjusted profit from operations at 2026 rates of exchange, and 2026

adjusted profit from operations as adjusted for Canada3 translated using 2025 rates of exchange.

The 2025 figures are stated at the 2025 rates of exchange.


Six months ended 30 June	2026
	Reported	Adj Items1	Adjusted	Exchange	Adjusted at CC2	Adj for Canada3 at CC2	As adj. for Canada3 at CC2
	£m	£m	£m	£m	£m	£m	£m
Profit from Operations
U.S.	2,595	652	3,247	124	3,371	—	3,371
AME	1,212	259	1,471	(28)	1,443	(109)	1,334
APMEA	459	249	708	8	716	—	716
Total Region	4,266	1,160	5,426	104	5,530	(109)	5,421
Net finance costs	(403)
Associates and joint ventures	189
Profit before tax	4,052
Taxation	(824)
Profit for the period	3,228


Six months ended 30 June	2025
	Reported	Adj Items1	Adjusted	Adj for Canada3	As adjusted for Canada3
	£m	£m	£m	£m	£m
Profit from Operations
U.S.	2,255	808	3,063	—	3,063
AME	1,969	(495)	1,474	(154)	1,320
APMEA	845	12	857	—	857
Total Region	5,069	325	5,394	(154)	5,240
Net finance costs	(969)
Associates and joint ventures	1,474
Profit before tax	5,574
Taxation	(1,009)
Profit for the period	4,565

Notes to the analysis of profit from operations above:

1.Adjusting items represent certain items which the Group considers distinctive based upon their size, nature or incidence.

2.CC: constant currency – measures are calculated based upon a re-translation, at the prior year’s exchange rates, of the current year’s results of the Group and, where applicable, its segments.

3.The adjustment in respect of Canada is discussed on pages 47 and 48, with the adjustment based upon a percentage (2026: 85%; 2025: 100%) of the net income after taxes earned from

all sources, excluding New Categories, in Canada.


BAT Interim Announcement 2026	Summary	Performance Review	Financial Statements	Other Information	Data Lake and Reconciliations

Notes to the Unaudited Interim Financial Statements (continued)

3. Adjusting Items

Adjusting items are significant items of income or expense in profit from operations, net finance costs, taxation, the Group’s

share of the post-tax results of associates and joint ventures, diluted earnings per share, 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.

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 non-GAAP measures of adjusted profit from operations,

adjusted operating margin, adjusted net finance costs, adjusted taxation and adjusted diluted earnings per share, all of which are

before the impact of adjusting items and which are reconciled from profit from operations, diluted earnings per share, net

finance costs and taxation.

In addition, the non-GAAP measure of adjusted profit from operations is presented with the additional adjustment to reflect the

settlement of the Canadian litigation, and is referred to as "as adjusted for Canada"1. This measure is also reconciled from profit

from operations.

1.The adjustment in respect of Canada is discussed on pages 47 and 48, with the adjustment based upon a percentage (2026: 85%; 2025: 100%) of the net income after taxes earned from

all sources, excluding New Categories, in Canada.

Adjusting items included in profit from operations

Adjusting items are significant items in the profit from operations that individually or, if of a similar type, in aggregate, are

relevant to an understanding of the Group’s underlying financial performance.

In summary, in the six months ended 30 June 2026, the Group incurred £1,160 million (30 June 2025: £325 million) of adjusting

items within profit from operations:


		Six months ended 30 June
		2026	2025
		£m	£m
(a)	Restructuring	370	13
(b)	Amortisation and impairment of trademarks and similar intangibles	796	804
(b)	Impairment of goodwill	—	72
(c)	Credit in respect of Romania's other taxes	(2)	(22)
(c)	Credit in respect of settlement of historical litigations with ITG brands	(149)	—
(c)	Other adjusting items (including Engle)	171	30
(c)	Charges in connection with disposal of subsidiaries	12	—
(d)	Credit in respect of the Canada Approved Plans	(38)	(575)
	Charges in connection with disposal of associate	—	3
	Total adjusting items included in profit from operations	1,160	325

(a) Restructuring and integration costs