BTI BRITISH AMERICAN TOBACCO PLC

(AMERICAN STOCK EXCHANGE)

Date: 11 November 2016 Sector: Consumer Non-Cyclicals Industry: Tobacco

Business Summary
British American Tobacco p.l.c. is a tobacco company. The Company is engaged in manufacturing
and marketing cigarettes and other tobacco products. Its segments include Asia-Pacific, Americas,
Western Europe, and Eastern Europe, Middle East and Africa (EEMEA). The Company's brands
include Dunhill, Kent, Lucky Strike, Pall Mall and Rothmans. Its portfolio also includes other in- British American Tobacco PLC
ternational brands, such as Vogue, Viceroy, Kool, Peter Stuyvesant, Craven A, Benson & Hedges, Globe House, 4 Temple Place
John Player Gold Leaf, State Express 555 and Shuang Xi. Its tobacco product range consists of Fine LONDON
Cut (roll-your-own and make-your-own tobacco), Swedish-style snus and cigars. The Company also WC2R 2PG
offers vapor products (e-cigarettes), battery-powered electronic devices, tobacco heating products, United Kingdom
licensed medicinal products and licensed nicotine products. The Company has approximately 44
Mike Nightingale (Head - Investor
factories in over 41 countries.
Relations)
Share Performance
Price ($): 105.94 52 Week High: 131.34 Currency: USD http://www.bat.com
Volume (millions): 1.6 52 Week Low: 99.81
P/E: 18.22
Employees: 87,577
(Millions)
Market Cap: 98,480.71
Shares Outstanding: 932.18
Float: 889.22

Sa le s
16000
15300
14500
13800
13100
12400
De c 1 3 De c 1 4 De c 1 5
(£ Millions)

In co m e
4680
4290
3900
Financial Summary
3510
BRIEF: For the six months ended 30 June 2016, British American Tobacco PLC (ADR) revenues
3120
increased 4% to L6.67B. Net income increased 1% to L2.67B. Revenues reflect Western Europe
2720
segment increase of 18% to L1.73B, Asia - Pacific segment increase of 5% to L1.99B. Net income De c 1 3 De c 1 4 De c 1 5
was partially offset by Americas segment income decrease of 18% to L484M, EEMEA segment (£ Millions)
income decrease of 8% to L513M, Asia - Pacific segment income decrease of 4% to L700M.
Ea r n in gs p e r Sh a r e
Valuation Ratios Per Share Data 242
Price/Earnings (TTM) 18.22 Earnings (TTM) 5.82 231
Price/Sales (TTM) 5.87 Sales (TTM) 18.02 220
Price/Book (MRQ) 12.87 Book Value (MRQ) 8.23 209
Price/Cashflow (TTM) 15.88 Cash Flow (TTM) 6.66 198
Cash (MRQ) 2.69 187
De c 1 3 De c 1 4 De c 1 5
Profitability Ratios (%) Management Effectiveness (%) (pence)

Gross Margin (TTM) 76.10 Return on Equity (TTM) 71.36

Div id e n d s p e r Sh a r e
Operating Margin (TTM) 33.07 Return on Assets (TTM) 13.80 1 5 7 .9
Net Profit Margin (TTM) 33.49 Return on Investment (TTM) 19.42 1 5 4 .0
1 5 0 .1
Financial Strength Dividend Information
1 4 6 .3
Quick Ratio (MRQ) 0.51 Dividend Yield (%) 4.12
1 4 2 .4
Current Ratio (MRQ) 0.91 Dividend per Share (MRQ) 1.29
1 3 8 .5
LT Debt/Equity (MRQ) 2.44 Payout Ratio (MRQ) 35.81 De c 1 3 De c 1 4 De c 1 5
Total Debt/Equity (MRQ) 3.31 (pence)

TTM: Trailing Twelve Months; MRQ: Most Recent Quarter; MRI: Most Recent Interim.
Latest fiscal year: 2015; Most recent quarter: 4; Fiscal year end month: December; 1
All Ratios are calculated for the latest fiscal year end unless otherwise indicated.
Data Source: Reuters Fundamentals
BTI BRITISH AMERICAN TOBACCO PLC
(AMERICAN STOCK EXCHANGE)

Key Ratios & Statistics

Financial Strength
12 Mo 12 Mo 12 Mo MRQ 3 Year
Financial Strength looks at business risk. The
Dec 13 Dec 14 Dec 15 Average stronger a company is from a financial standpoint,
Quick Ratio 0.63 0.55 0.62 0.51 0.60 the less risky it is. The Quick Ratio compares cash
Current Ratio 1.13 1.04 1.09 0.91 1.09 and short-term investments (investments that could
be converted to cash very quickly) to the financial
LT Debt/Equity 1.46 1.77 3.03 2.44 2.09
liabilities they expect to incur within a year's time.
Total Debt Equity 1.76 2.22 3.47 3.31 2.48

Cu r r e n t Ra t io
The Current Ratio compares year-ahead liabilities
1 .2 to cash on hand now plus other inflows (e.g. Ac-
1 .1 3 counts Receivable) the company is likely to realize
1 .0 6 over that same twelve-month period.
0 .9 8
Current Ratio 1.09
0 .9 1 Total Current Assets 9,814.00
0 .8 4 Total Current Liabilities 9,006.00
1 2 Mo 1 2 Mo 1 2 Mo MRQ 3 Ye a r
De c 1 3 De c 1 4 De c 1 5 Av e r a ge
The Long Term Debt/Equity Ratio looks at the
Quick Ratio: Cash plus Short Term Investments plus Accounts Receivable divided by the Total Cur- company's capital base. A ratio of 1.00 means the
rent Liabilities for the same period. Current Ratio: Total Current Assets divided by Total Current company's long-term debt and equity are equal. The
Liabilities for the same period. Long Term Debt To Total Equity: Total Long Term Debt divided
by Total Shareholder Equity. Total Debt to Total Equity: Total Debt divided by Total Shareholder
Total Debt/Equity Ratio includes long-term debt
Equity for the same period. and short term debt.

Profitability
12 Mo 12 Mo 12 Mo TTM 3 Year
Dec 13 Dec 14 Dec 15 Average These ratios realize overall profitability, or the bot-
Gross Margin (%) 78.75 78.31 76.85 76.10 77.97 tom line.
Operating Margin (%) 36.21 32.57 34.78 33.07 34.52 Gross Margin (%) 76.85 (%)
Net Profit Margin (%) 27.52 24.29 34.51 33.49 28.77 Gross Profit 10,071.00
x 100 x 100
9.00 7.74 7.52 -- 8.09 Revenue 13,104.00
Interest Coverage

Gr o s s Ma r gin (%) Gross Margin shows the amount of revenue left over
7 9 .6 after deducting direct costs of producing the goods
7 8 .7 or services. Operating Profit and Operating Margin
7 7 .9 trace the progress revenue down to another impor-
7 7 .0 tant level. From gross profit, we now subtract indi-
rect costs, often referred to as overhead e.g. facili-
7 6 .1
ties and salaries associated with headquarters op-
7 5 .2
1 2 Mo 1 2 Mo 1 2 Mo TTM 3 Ye a r erations.
De c 1 3 De c 1 4 De c 1 5 Av e r a ge

Gross Margin: This value measures the percent of revenue left after paying all direct production ex-
Finally, Profit Margin shows you how much of each
penses. It is calculated as Revenue minus the Cost of Goods Sold divided by the Revenue and multiplied revenue dollar is left after all costs, of any kind, are
by 100. Operating Margin: This value measures the percent of revenues remaining after paying all subtracted. These other costs include such items as
operating expenses. It is calculated as Operating Income divided by the Total Revenue, multiplied by interest on corporate debt and income taxes.
100. Net Profit Margin: Also known as Return on Sales, this value is the Income After Taxes divided
by Total Revenue for the same period and is expressed as a percentage. Interest Coverage: The
Operating Income divided by the company's interest obligations.

TTM: Trailing Twelve Months; MRQ: Most Recent Quarter; MRI: Most Recent Interim.
Latest fiscal year: 2015; Most recent quarter: 4; Fiscal year end month: December;
All Ratios are calculated for the latest fiscal year end unless otherwise indicated.
Data Source: Reuters Fundamentals 2
BTI BRITISH AMERICAN TOBACCO PLC
(AMERICAN STOCK EXCHANGE)

Key Ratios & Statistics (cont.)

Management Effectiveness (%)

12 Mo 12 Mo 12 Mo TTM 3 Year
A company's ability to operate profitably can be
Dec 13 Dec 14 Dec 15 Average measured directly by measuring its return on assets.
Return on Equity % 55.35 51.30 82.47 71.36 63.04 ROA (Return On Assets) is the ratio of a company's
Return on Assets % 15.49 12.79 15.68 13.80 14.65 net profit to its total assets, expressed as a percent-
age.
Return on Investments % 22.32 18.93 22.66 19.42 21.30
Return on Assets (%) 15.68 (%)
Re t u r n o n As s e t s %
Income After Taxes 4,522.00
1 6 .6 x 100 x 100
Average Total Assets 28,841.00
1 5 .7
1 4 .7
ROA measures how well a company's management
1 3 .8 uses its assets to generate profits. It is a better mea-
1 2 .8 sure of operating efficiency than ROE, which on-
1 1 .8 ly measures how much profit is generated on the
1 2 Mo 1 2 Mo 1 2 Mo TTM 3 Ye a r
De c 1 3 De c 1 4 De c 1 5 Av e r a ge shareholders equity but ignores debt funding. This
ratio is particularly relevant for banks which typi-
Return On Equity: Income Available to Common Stockholders divided by the Common Equity and cally have huge assets.
expressed as a percentage. Return on Assets: This value is the Income After Taxes divided by the
Average Total Assets, expressed as a percentage. Return on Investments: Income after taxes divided
by the average total long term debt, other long term liabilities and shareholders equity, and expressed
as a percentage.

Dividend Information
12 Mo 12 Mo 12 Mo MRQ 3 Year
Dec 13 Dec 14 Dec 15 Average The annual dividend is the total amount(£) of div-
Payout Ratio (%) 69.34 88.62 66.70 35.81 74.89 idends you could expect to receive if you held
the stock for a year (assuming no change in the
Dividend Per Share 1.42 1.48 1.54 1.29 1.48
company's dividend policy).
Pa y o u t Ra t io (%)
106 Payout Ratio (%) 66.70 (%)
Dividend Per Share 1.54
89 x 100 x 100
Primary EPS 2.31
71
53 The dividend yield is the indicated annual dividend
36 rate expressed as a percentage of the price of the
18 stock, and could be compared to the coupon yield on
1 2 Mo 1 2 Mo 1 2 Mo MRQ 3 Ye a r
De c 1 3 De c 1 4 De c 1 5 Av e r a ge a bond. The Payout Ratio tells you what percent of
the company's earnings have been given to share-
Dividend Per Share: Common Stock Cash Dividends divided by the shares outstanding. Payout Ratio: holders as cash dividends. A low payout ratio indi-
This ratio is the percentage of the Primary/Basic Earnings Per Share Excluding Extraordinary Items cates that company has chosen to reinvest most of
paid to common stockholders in the form of cash dividends. the profits back into the business.

TTM: Trailing Twelve Months; MRQ: Most Recent Quarter; MRI: Most Recent Interim.
Latest fiscal year: 2015; Most recent quarter: 4; Fiscal year end month: December;
All Ratios are calculated for the latest fiscal year end unless otherwise indicated.
Data Source: Reuters Fundamentals 3
BTI BRITISH AMERICAN TOBACCO PLC
(AMERICAN STOCK EXCHANGE)

Key Ratios & Statistics (cont.)

Per Share Data

12 Mo 12 Mo 12 Mo TTM 3 Year
The most important Per-Share Data item is Earn-
Dec 13 Dec 14 Dec 15 Growth ings Per Share. That's because ultimately, the price
Earning Per Share 2.05 1.67 2.30 5.82 0.06 of your stock is related in some way to the value of
Sales Per Share 8.00 7.47 7.03 18.02 (0.03) the stream of earnings attributable to that share.
Book Value 3.52 2.96 2.63 8.23 (0.12)
Earnings Per Share 2.30
Cash Flow 2.20 1.81 2.43 6.66 0.05 Adjusted Income Avail. to Common Shareholders 4,290.00
Cash Per Share 1.14 1.00 1.07 2.69 (0.01) Diluted Weighted Average Shares 1,863.00

Ea r n in gs Pe r Sh a r e This section also includes the amount of Cash Per

7 .2 Share the company had at the time of its most re-
5 .8 cent quarterly or annual report. Most of the time,
4 .4 this number will be far below the stock price. In
3 .1 a healthy industrial company, a Cash Per Share
1 .7
figure that is close the stock price might suggest
that investors are underestimating the worth of the
0 .3
1 2 Mo 1 2 Mo 1 2 Mo TTM company's ongoing business, thereby creating an
De c 1 3 De c 1 4 De c 1 5 interesting investment opportunity for you.
EPS Excluding Extraordinary Items: This is the adjusted income available to Common divided by
the diluted weighted average shares outstanding. Sales (Revenue) Per Share: Total Revenue divided
by the Average Diluted Shares Outstanding. Book Value Per Share: This is defined as the Common
Shareholder's Equity divided by the Shares Outstanding. Cash Flow: Cash Flow is defined as the sum
of Income After Taxes minus Preferred Dividends and General Partner Distributions plus Deprecia-
tion, Depletion and Amortization. Cash Per Share: This is the Total Cash plus Short Term Invest-
ments divided by the Shares Outstanding.

TTM: Trailing Twelve Months; MRQ: Most Recent Quarter; MRI: Most Recent Interim.
Latest fiscal year: 2015; Most recent quarter: 4; Fiscal year end month: December;
All Ratios are calculated for the latest fiscal year end unless otherwise indicated.
Data Source: Reuters Fundamentals 4
BTI BRITISH AMERICAN TOBACCO PLC
(AMERICAN STOCK EXCHANGE)

Consensus Estimates

Analyst Recommendations Current As of 1 As of 4 As of 8 As of 13

Week Ago Weeks Ago Weeks Ago Weeks Ago Consensus Recommendation
& Revisions
OUTPERFORM
Buy 2 2 2 2 1
Outperform 0 0 0 0 0
Company Fiscal Year End Month
Hold 1 1 1 1 1
December
Underperform 0 0 0 0 0
Strong Sell 0 0 0 0 0
Last Updated
Mean Rating 1.7 1.7 1.7 1.7 2.0 11 November 2016

Consensus Estimate Trends Current As of 1 As of 4 As of 8 As of 13

Week Ago Weeks Ago Weeks Ago Weeks Ago Sa le s
Sales (Millions) 23000

Year Ending Dec 16 18,378.1 18,378.1 19,181.2 19,181.2 19,171.8 18400

Earnings (Per share) 13800

Year Ending Dec 16 6.4 6.4 6.6 6.6 6.6 9200
Year Ending Dec 17 6.6 6.6 6.8 6.8 6.5 4600
0
De c 1 6
($ Millions)
Consensus Estimate Analysis No. of Mean High Low
Estimates Estimate Estimate Estimate
Ea r n in gs p e r Sh a r e
Sales (Millions)
6 .7 9
Year Ending Dec 16 2 18,378.1 19,171.8 17,584.5
6 .5 6
Earnings (Per share)
6 .3 4
Year Ending Dec 16 3 6.4 6.8 6.0
6 .1 1
Year Ending Dec 17 3 6.6 6.8 6.4
5 .8 8
LT Growth Rate 1 11.0 11.0 11.0
5 .6 5
De c 1 5 De c 1 6 De c 1 7
($)

Quarter Historical Surprises Estimate Actual Difference Surprise(%)

Sales(Millions)
N/A -- -- -- --
N/A -- -- -- --
N/A -- -- -- --
N/A -- -- -- --
Earnings (Per share)
N/A -- -- -- --
N/A -- -- -- --
N/A -- -- -- --
N/A -- -- -- --

Data Source: Reuters Fundamentals 5

BTI BRITISH AMERICAN TOBACCO PLC
(AMERICAN STOCK EXCHANGE)

Annual Income Statement

Type of Update UPD UPD UPD T o t a l Re v e n u e
16000
(£ Millions) (£ Millions) (£ Millions)
12Months 12Months 12Months 15300
31 Dec 13 31 Dec 14 31 Dec 15 14500
Total Revenue 15,260.0 13,971.0 13,104.0 13800
Cost of Revenue,Total 3,243.0 3,030.0 3,033.0
13100
Gross Profit 12,017.0 10,941.0 10,071.0
12400
Selling/General/Admin.Expenses 2,363.0 2,068.0 1,952.0 De c 1 3 De c 1 4 De c 1 5
Research & Development 91.0 74.0 60.0 (£ Millions)
Depreciation/Amortization 443.0 481.0 469.0
Interest Expense/Income Net Op. -- -- -- Gr o s s Pr o fit
Unusual Income/Expense 243.0 826.0 368.0 12700

Other Operating Expenses,Total 3,340.0 2,935.0 2,655.0 12000

Total Operating Expense 9,734.0 9,421.0 8,547.0 11400

Operating Income 5,526.0 4,550.0 4,557.0 10700
Interest Expense/Income Net Non Op. -- -- -- 10100
Gain/(Loss) on Sale of Assets -- -- 371.0 9400
De c 1 3 De c 1 4 De c 1 5
Other, Net -- -- (88.0)
(£ Millions)
Income Before Tax 5,799.0 4,848.0 5,855.0
Income Tax - Total 1,600.0 1,455.0 1,333.0
Op e r a t in g In co m e
Income After Tax 4,199.0 3,393.0 4,522.0 5850
Minority Interest (295.0) (278.0) (232.0) 5530
Equity In Affiliates -- -- --
5200
U.S. GAAP Adjustment -- -- --
4880
Net Income Before Extra. Items 3,904.0 3,115.0 4,290.0
4550
Accounting Change -- -- --
4220
Discontinued Operations -- -- -- De c 1 3 De c 1 4 De c 1 5
Extraodinary Item -- -- -- (£ Millions)
Tax on Extraordinary Items -- -- --
Net Income 3,904.0 3,115.0 4,290.0 Ne t In co m e
Preferred Dividends -- -- -- 4680
General Partner's Distributions -- -- -- 4290
Inc. Avail. to Common Excl. Extra. Items 3,904.0 3,115.0 4,290.0 3900
Inc. Avail. to Common Incl. Extra. Items 3,904.0 3,115.0 4,290.0 3510
Basic Weighted Average Shares 1,901.0 1,864.0 1,858.0 3120
Basic EPS Excl. Extra. Items 2.054 1.671 2.309 2720
Basic EPS Incl. Extra. Items 2.054 1.671 2.309 De c 1 3 De c 1 4 De c 1 5

Dilution Adjustment 0.000 0.000 -- (£ Millions)

Diluted Net Income 3,904.000 3,115.000 4,290.000

Dilu t e d No r m a liz e d EPS
Diluted Weighted Average Shares 1,908.000 1,870.000 1,863.000 2 .4 1
Diluted EPS Excl. Extra. Items 2.046 1.666 2.303
2 .3
Diluted EPS Incl. Extra. Items 2.046 1.666 2.303
2 .1 9
Div's per Share - Common Stock 1.424 1.481 1.540
2 .0 8
Gross Dividends - Common Stock 2,677.000 2,743.000 2,851.000
1 .9 7
Interest Expense, Supplemental 614.000 588.000 606.000
1 .8 7
Interest Capitalized, Supplemental -- -- -- De c 1 3 De c 1 4 De c 1 5
Depreciation, Supplemental 321.000 307.000 271.000
(£ Millions)
Total Special Items 243.000 826.000 (3.000)
Normalized Income Before Tax 6,042.000 5,674.000 5,852.000
Effect of Special Items on Inc. Taxes 67.046 247.902 (0.683)
Inc. Taxes Excl. Impact Special Items 1,667.050 1,702.900 1,332.320
Normalized Income After Tax 4,374.950 3,971.100 4,519.680
Normalized Income Available to Common 4,079.950 3,693.100 4,287.680
Basic Normalized EPS 2.146 1.981 2.308
Diluted Normalized EPS 2.138 1.975 2.301
Auditor PWCL PWCL KPMG
Auditor Opinion UNO UNO UNO
Source Document ARS ARS ARS

Data Source: Reuters Fundamentals 6

BTI BRITISH AMERICAN TOBACCO PLC
(AMERICAN STOCK EXCHANGE)

Annual Balance Sheet

Type of Update UPD UPD UPD Ca s h & Sh o r t T e r m In v e s t m e n t s
2260
(£ Millions) (£ Millions) (£ Millions)
31 Dec 13 31 Dec 14 31 Dec 15 2160
Cash 1,399.0 1,199.0 1,325.0 2060
Cash and Equivalents 707.0 619.0 638.0 1970
Short Term Investments 54.0 50.0 35.0 1870
Cash and Short Term Investments 2,160.0 1,868.0 1,998.0 1770
Accounts Receivable(Trade), Net 2,876.0 2,768.0 3,266.0 De c 1 3 De c 1 4 De c 1 5
Notes Receivable - Short Term -- -- -- (£ Millions)

Other Receivables 95.0 57.0 74.0

Total Receivables, Net 2,971.0 2,825.0 3,340.0 T o t a l Cu r r e n t As s e t s
10040
Total Inventory 4,042.0 4,133.0 4,247.0
9810
Prepaid Expenses -- -- --
9590
Other Current Assets 345.0 306.0 229.0
9360
Total Current Assets 9,518.0 9,132.0 9,814.0
9130
Property/Plant/Equipment - Gross 6,076.0 5,937.0 5,793.0
Accumulated Depreciation (2,920.0) (2,933.0) (2,772.0) 8900
De c 1 3 De c 1 4 De c 1 5
Property/Plant/Equip., Net 3,156.0 3,004.0 3,021.0
(£ Millions)
Goodwill, Net 10,249.0 9,842.0 9,324.0
Intangibles, Net 956.0 962.0 1,112.0 T o t a l De b t
Long Term Investments 2,335.0 2,436.0 6,975.0 18800
Note Receivable - Long Term 171.0 153.0 248.0 17000
Other Long Term Assets, Total 496.0 638.0 1,021.0 15200
Other Assets, Total -- -- -- 13500
Total Assets 26,881.0 26,167.0 31,515.0 11700
Accounts Payable 5,741.0 5,524.0 5,937.0 9900
Payable/Accrued -- -- -- De c 1 3 De c 1 4 De c 1 5
Accrued Expenses -- 62.0 71.0 (£ Millions)

Notes Payable/Short Term Debt 0.0 0.0 0.0

Current Port. LT Debt/Capital Leases 1,980.0 2,479.0 2,195.0 T o t a l Eq u it y
7200
Other Current Liabilities, Total 715.0 704.0 803.0
6600
Total Current Liabilities 8,436.0 8,769.0 9,006.0
6100
Long Term Debt 9,716.0 9,779.0 14,806.0
5500
Capital Lease Obligations -- -- --
Total Long Term Debt 9,716.0 9,779.0 14,806.0 4900

Total Debt 11,696.0 12,258.0 17,001.0 4300

De c 1 3 De c 1 4 De c 1 5
Deferred Income Tax 514.0 495.0 563.0
(£ Millions)
Minority Interest 301.0 304.0 138.0
Other Liabilities, Total 1,280.0 1,310.0 2,108.0
T o t a l Co m m o n Sh a r e s Ou t s t a n d in g
Total Liabilities 20,247.0 20,657.0 26,621.0 1895
Redeemable Preferred Stock -- -- -- 1887
Preferred Stock(Non Redeemable), Net -- -- -- 1879
Common Stock 507.0 507.0 507.0 1872
Additional Paid-In Capital 70.0 74.0 78.0 1864
Retained Earnings/Accum. Deficit 6,247.0 5,427.0 5,603.0 1856
Treasury Stock - Common -- -- -- De c 1 3 De c 1 4 De c 1 5
ESOP Debt Guarantee -- -- -- (£ Millions)

Unrealized Gain/Loss -- -- --
Other Equity, Total (190.0) (498.0) (1,294.0)
Total Equity 6,634.0 5,510.0 4,894.0
Total Liability & Shareholders' Equity 26,881.0 26,167.0 31,515.0
Total Common Shares Outstanding 1,886.9 1,864.1 1,864.2
Total Preferred Stock Shares Outs. -- -- --
Auditor PWCL PWCL KPMG
Auditor Opinion UNO UNO UNO
Source Document ARS ARS ARS

Data Source: Reuters Fundamentals 7

BTI BRITISH AMERICAN TOBACCO PLC
(AMERICAN STOCK EXCHANGE)

Annual Cash Flow Statement

Type of Update UPD UPD UPD T o t a l Ca s h fr o m Op e r a t in g Act iv it ie s
5050
(£ Millions) (£ Millions) (£ Millions)
12Months 12Months 12Months 4720
31 Dec 13 31 Dec 14 31 Dec 15 4390
Net Income/Starting Line 5,526.0 4,546.0 4,557.0 4050
Depreciation/Depletion 355.0 396.0 428.0
3720
Amortization 122.0 127.0 --
3380
Deferred Taxes -- -- -- De c 1 3 De c 1 4 De c 1 5
Non-Cash Items 484.0 515.0 1,556.0 (£ Millions)
Cash Receipts -- -- --
Cash Payments -- -- -- Ca p it a l Ex p e n d it u r e s
Cash Taxes Paied 1,440.0 1,433.0 1,273.0 - 561

Cash Interest Paid 570.0 571.0 596.0 - 601

Changes in Working Capital (2,051.0) (1,868.0) (1,821.0) - 641

Total Cash from Operating Activities 4,436.0 3,716.0 4,720.0 - 681
Capital Expenditures (721.0) (692.0) (601.0) - 721
Other Investing Cash Flow Items, Total 386.0 222.0 (3,390.0) - 761
De c 1 3 De c 1 4 De c 1 5
Total Cash from Investing Activities (335.0) (470.0) (3,991.0)
(£ Millions)
Financing Cash Flow Items (782.0) (576.0) (2,308.0)
Total Cash Dividends Paid (2,611.0) (2,712.0) (2,770.0)
Is s u e o f St o ck
Insurance/Retirement of Stock, Net (1,579.0) (844.0) (42.0) 500
Insurance/Retirement of Debt, Net 1,005.0 665.0 4,901.0 0
Total Cash from Financing Activities (3,967.0) (3,467.0) (219.0)
- 600
Foreign Exchange Effects (197.0) (63.0) (272.0)
- 1100
Net Change in Cash (63.0) (284.0) 238.0
- 1600
Depreciation, Supplemental 355.0 396.0 428.0
- 2100
Cash Interest Paid, Supplemental 570.0 571.0 596.0 De c 1 3 De c 1 4 De c 1 5
Cash Taxes Paid, Supplemental 1,440.0 1,433.0 1,273.0 (£ Millions)
Auditor PWCL PWCL KPMG
Auditor Opinion UNO UNO UNO Is s u e o f De b t
Source Document ARS ARS ARS 6100
4900
3700
2500
1200
0
De c 1 3 De c 1 4 De c 1 5
(£ Millions)

Ne t Ch a n ge in Ca s h
410
240
60
- 110
- 280
- 460
De c 1 3 De c 1 4 De c 1 5
(£ Millions)

Data Source: Reuters Fundamentals 8

BTI BRITISH AMERICAN TOBACCO PLC
(AMERICAN STOCK EXCHANGE)

Quarterly Income Statement

Type of Update UPD UPD UPD UPD UPD T o t a l Re v e n u e
3710
(£ Millions) (£ Millions) (£ Millions) (£ Millions) (£ Millions)
3Months 3Months 3Months 3Months 3Months 3420
31 Dec 07 31 Mar 08 30 Jun 08 30 Sep 08 31 Dec 08 3130
Total Revenue 2,706.0 2,541.0 2,916.0 3,247.0 3,418.0 2830
Cost of Revenue,Total 748.0 659.0 826.0 861.0 970.0
2540
Gross Profit 1,958.0 1,882.0 2,090.0 2,386.0 2,448.0
2250
Selling/General/Admin.Expenses 490.0 385.0 421.0 541.0 560.0 De c 0 7 Ma r 0 8 Ju n 0 8 Se p 0 8 De c 0 8
Research & Development -- -- -- -- -- (£ Millions)
Depreciation/Amortization 104.0 83.0 91.0 103.0 153.0
Interest Expense/Income Net Op. -- -- -- -- -- Gr o s s Pr o fit
Unusual Income/Expense 0.0 10.0 23.0 -- 229.0 2640

Other Operating Expenses,Total 763.0 597.0 638.0 752.0 648.0 2450

Total Operating Expense 2,105.0 1,734.0 1,999.0 2,257.0 2,560.0 2260

Operating Income 601.0 807.0 917.0 990.0 858.0 2070
Interest Expense/Income Net Non Op. -- -- -- -- -- 1880
Gain/(Loss) on Sale of Assets -- -- -- -- -- 1690
De c 0 7 Ma r 0 8 Ju n 0 8 Se p 0 8 De c 0 8
Other, Net -- -- -- -- --
(£ Millions)
Income Before Tax 643.0 871.0 967.0 992.0 854.0
Income Tax - Total 162.0 224.0 270.0 281.0 250.0
Op e r a t in g In co m e
Income After Tax 481.0 647.0 697.0 711.0 604.0 1120
Minority Interest (30.0) (48.0) (47.0) (54.0) (53.0) 990
Equity In Affiliates -- -- -- -- --
860
U.S. GAAP Adjustment -- -- -- -- --
730
Net Income Before Extra. Items 451.0 599.0 650.0 657.0 551.0
600
Accounting Change -- -- -- -- --
470
Discontinued Operations -- -- -- -- -- De c 0 7 Ma r 0 8 Ju n 0 8 Se p 0 8 De c 0 8
Extraodinary Item -- -- -- -- -- (£ Millions)
Tax on Extraordinary Items -- -- -- -- --
Net Income 451.0 599.0 650.0 657.0 551.0 Ne t In co m e
Preferred Dividends -- -- -- -- -- 730
General Partner's Distributions -- -- -- -- -- 660
Inc. Avail. to Common Excl. Extra. Items 451.0 599.0 650.0 657.0 551.0 590
Inc. Avail. to Common Incl. Extra. Items 451.0 599.0 650.0 657.0 551.0 520
Basic Weighted Average Shares 2,007.0 2,002.0 1,996.0 1,990.3 1,983.7 450
Basic EPS Excl. Extra. Items 0.225 0.299 0.326 0.330 0.278 380
Basic EPS Incl. Extra. Items 0.225 0.299 0.326 0.330 0.278 De c 0 7 Ma r 0 8 Ju n 0 8 Se p 0 8 De c 0 8

Dilution Adjustment 0.000 0.000 0.000 -- 0.000 (£ Millions)

Diluted Net Income 451.000 599.000 650.000 657.000 551.000

Dilu t e d No r m a liz e d EPS
Diluted Weighted Average Shares 2,021.000 2,015.000 2,009.000 2,003.660 1,992.340 0 .4 6
Diluted EPS Excl. Extra. Items 0.223 0.297 0.324 0.328 0.277
0 .4
Diluted EPS Incl. Extra. Items 0.223 0.297 0.324 0.328 0.277
0 .3 4
Div's per Share - Common Stock 0.476 0.000 0.221 0.000 0.616
0 .2 8
Gross Dividends - Common Stock 953.000 0.000 440.000 0.000 1,221.000
0 .2 2
Interest Expense, Supplemental 115.000 185.000 115.000 117.000 241.000
0 .1 6
Interest Capitalized, Supplemental -- -- -- -- -- De c 0 7 Ma r 0 8 Ju n 0 8 Se p 0 8 De c 0 8
Depreciation, Supplemental 104.000 83.000 91.000 103.000 153.000
(£ Millions)
Total Special Items 0.000 10.000 23.000 7.000 343.000
Normalized Income Before Tax 643.000 881.000 990.000 999.000 1,197.000
Effect of Special Items on Inc. Taxes 0.000 2.572 6.422 1.983 100.410
Inc. Taxes Excl. Impact Special Items -- -- -- -- --
Normalized Income After Tax 481.000 654.428 713.578 716.017 846.590
Normalized Income Available to Common 451.000 606.428 666.578 662.017 793.590
Basic Normalized EPS 0.225 0.303 0.334 0.333 0.400
Diluted Normalized EPS 0.223 0.301 0.332 0.330 0.398
Source Document ARS Interim Re- Interim Re- Interim Re- ARS
port port port
Fiscal Period 4 1 2 3 4

Data Source: Reuters Fundamentals 9

BTI BRITISH AMERICAN TOBACCO PLC
(AMERICAN STOCK EXCHANGE)

Quarterly Balance Sheet

Type of Update UPD UPD CLA RES CLA Ca s h & Sh o r t T e r m In v e s t m e n t s
2790
(£ Millions) (£ Millions) (£ Millions) (£ Millions) (£ Millions)
31 Dec 06 30 Jun 07 31 Dec 07 30 Jun 08 31 Dec 08 2400
Cash -- -- -- -- -- 2010
Cash and Equivalents 1,456.0 1,141.0 1,258.0 2,326.0 2,309.0 1620
Short Term Investments 128.0 93.0 75.0 76.0 79.0 1230
Cash and Short Term Investments 1,584.0 1,234.0 1,333.0 2,402.0 2,388.0 840
Accounts Receivable(Trade), Net 1,568.0 1,503.0 1,845.0 1,749.0 2,395.0 De c 0 6 Ju n 0 7 De c 0 7 Ju n 0 8 De c 0 8
Notes Receivable - Short Term -- -- -- -- -- (£ Millions)

Other Receivables 59.0 50.0 85.0 94.0 137.0

Total Receivables, Net 1,627.0 1,553.0 1,930.0 1,843.0 2,532.0 T o t a l Cu r r e n t As s e t s
10000
Total Inventory 2,056.0 2,208.0 1,985.0 2,637.0 3,177.0
8700
Prepaid Expenses -- -- -- -- --
7500
Other Current Assets 124.0 95.0 117.0 488.0 642.0
6300
Total Current Assets 5,391.0 5,090.0 5,365.0 7,370.0 8,739.0
5100
Property/Plant/Equipment - Gross -- -- -- -- --
Accumulated Depreciation -- -- -- -- -- 3900
De c 0 6 Ju n 0 7 De c 0 7 Ju n 0 8 De c 0 8
Property/Plant/Equip., Net 2,207.0 2,192.0 2,378.0 2,496.0 3,076.0
(£ Millions)
Goodwill, Net -- -- -- -- --
Intangibles, Net 7,476.0 7,561.0 8,105.0 8,872.0 12,318.0 T o t a l De b t
Long Term Investments 2,132.0 2,355.0 2,439.0 2,218.0 2,579.0 14000
Note Receivable - Long Term 192.0 79.0 154.0 159.0 193.0 12200
Other Long Term Assets, Total 378.0 374.0 323.0 418.0 646.0 10300
Other Assets, Total -- -- -- -- -- 8500
Total Assets 17,776.0 17,651.0 18,764.0 21,533.0 27,551.0 6600
Accounts Payable 2,766.0 2,665.0 2,976.0 3,167.0 4,718.0 4800
Payable/Accrued -- -- -- -- -- De c 0 6 Ju n 0 7 De c 0 7 Ju n 0 8 De c 0 8
Accrued Expenses -- -- -- -- -- (£ Millions)

Notes Payable/Short Term Debt 1,058.0 1,194.0 861.0 1,760.0 2,724.0

Current Port. LT Debt/Capital Leases -- -- -- -- -- T o t a l Eq u it y
7110
Other Current Liabilities, Total 629.0 598.0 707.0 751.0 1,436.0
6940
Total Current Liabilities 4,453.0 4,457.0 4,544.0 5,678.0 8,878.0
6780
Long Term Debt 5,568.0 5,440.0 6,062.0 7,895.0 9,437.0
6610
Capital Lease Obligations -- -- -- -- --
Total Long Term Debt 5,568.0 5,440.0 6,062.0 7,895.0 9,437.0 6440

Total Debt 6,626.0 6,634.0 6,923.0 9,655.0 12,161.0 6270

De c 0 6 Ju n 0 7 De c 0 7 Ju n 0 8 De c 0 8
Deferred Income Tax 296.0 304.0 336.0 380.0 599.0
(£ Millions)
Minority Interest 227.0 236.0 218.0 248.0 271.0
Other Liabilities, Total 771.0 774.0 733.0 715.0 1,422.0
T o t a l Co m m o n Sh a r e s Ou t s t a n d in g
Total Liabilities 11,315.0 11,211.0 11,893.0 14,916.0 20,607.0 2093
Redeemable Preferred Stock -- -- -- -- -- 2069
Preferred Stock(Non Redeemable), Net -- -- -- -- -- 2045
Common Stock 517.0 509.0 506.0 506.0 506.0 2020
Additional Paid-In Capital 48.0 52.0 -- 3,905.0 56.0 1996
Retained Earnings/Accum. Deficit 5,487.0 5,389.0 5,707.0 1,825.0 5,427.0 1972
Treasury Stock - Common -- -- (296.0) -- (745.0) De c 0 6 Ju n 0 7 De c 0 7 Ju n 0 8 De c 0 8
ESOP Debt Guarantee -- -- -- -- -- (£ Millions)

Unrealized Gain/Loss 13.0 11.0 -- -- --

Other Equity, Total 396.0 479.0 954.0 381.0 1,700.0
Total Equity 6,461.0 6,440.0 6,871.0 6,617.0 6,944.0
Total Liability & Shareholders' Equity 17,776.0 17,651.0 18,764.0 21,533.0 27,551.0
Total Common Shares Outstanding 2,068.8 2,040.5 2,017.6 2,008.0 1,996.1
Total Preferred Stock Shares Outs. -- -- -- -- --
Source Document ARS Interim Re- PRESS Interim Re- Interim Re-
port port port
Fiscal Period 4 2 4 2 4

Data Source: Reuters Fundamentals 10

BTI BRITISH AMERICAN TOBACCO PLC
(AMERICAN STOCK EXCHANGE)

Quarterly Cash Flow Statement

Type of Update UPD UPD CLA CLA UPD T o t a l Op e r a t in g Act iv it ie s
4300
(£ Millions) (£ Millions) (£ Millions) (£ Millions) (£ Millions)
12Months 6Months 12Months 6Months 12Months 3500
31 Dec 06 30 Jun 07 31 Dec 07 30 Jun 08 31 Dec 08 2700
Net Income/Starting Line 2,764.0 1,588.0 2,904.0 1,724.0 3,572.0 1900
Depreciation/Depletion 367.0 141.0 293.0 153.0 350.0
1100
Amortization 34.0 15.0 43.0 21.0 80.0
300
Deferred Taxes -- -- -- -- -- De c 0 6 Ju n 0 7 De c 0 7 Ju n 0 8 De c 0 8
Non-Cash Items 57.0 (13.0) 210.0 153.0 185.0 (£ Millions)
Cash Receipts -- -- -- -- --
Cash Payments -- -- -- -- -- Ca p it a l Ex p e n d it u r e s
Cash Taxes Paied 713.0 410.0 866.0 455.0 943.0 10

Cash Interest Paid 392.0 174.0 387.0 179.0 403.0 - 130

Changes in Working Capital (860.0) (613.0) (850.0) (784.0) (648.0) - 270

Total Cash from Operating Activities 2,362.0 1,118.0 2,600.0 1,267.0 3,539.0 - 410
Capital Expenditures (425.0) (175.0) (482.0) (132.0) (544.0) - 540
Other Investing Cash Flow Items, Total 110.0 124.0 360.0 (737.0) (1,842.0) - 680
De c 0 6 Ju n 0 7 De c 0 7 Ju n 0 8 De c 0 8
Total Cash from Investing Activities (315.0) (51.0) (122.0) (869.0) (2,386.0)
(£ Millions)
Financing Cash Flow Items (250.0) (270.0) (649.0) (560.0) (1,232.0)
Total Cash Dividends Paid (1,147.0) (821.0) (1,198.0) (954.0) (1,393.0)
Is s u e o f St o ck
Insurance/Retirement of Stock, Net (549.0) (368.0) (764.0) (246.0) (506.0) - 70
Insurance/Retirement of Debt, Net (393.0) 135.0 (10.0) 2,342.0 2,757.0 - 250
Total Cash from Financing Activities -- -- -- -- --
- 420
Foreign Exchange Effects (96.0) 10.0 47.0 91.0 261.0
- 590
Net Change in Cash (388.0) (247.0) (96.0) 1,071.0 1,040.0
- 760
Depreciation, Supplemental 367.0 141.0 293.0 153.0 350.0
- 940
Cash Interest Paid, Supplemental 392.0 174.0 387.0 179.0 403.0 De c 0 6 Ju n 0 7 De c 0 7 Ju n 0 8 De c 0 8
Cash Taxes Paid, Supplemental 713.0 410.0 866.0 455.0 943.0 (£ Millions)
Source Document ARS Interim Re- ARS Interim Re- ARS
port port Is s u e o f De b t
Fiscal Period 4 2 4 2 4 3800
2800
1700
700
- 400
- 1400
De c 0 6 Ju n 0 7 De c 0 7 Ju n 0 8 De c 0 8
(£ Millions)

Ne t Ch a n ge in Ca s h
1560
1070
580
100
- 390
- 870
De c 0 6 Ju n 0 7 De c 0 7 Ju n 0 8 De c 0 8
(£ Millions)

Data Source: Reuters Fundamentals 11

BTI BRITISH AMERICAN TOBACCO PLC
(AMERICAN STOCK EXCHANGE)

Further Information

Internet Information
Home Page: http://www.bat.com

Officers
Richard Burrows Non-Executive Chairman of the Board
Nicandro Durante Chief Executive, Executive Director
J. Ben Stevens Finance Director, Executive Director
Jerome Abelman Director, Legal & External Affairs and General Counsel
Kingsley Wheaton Managing Director - Next Generation Products
Andrew Gray Director, Marketing
Giovanni Giordano Director, Group Human Resources
Jack Bowles Regional Director, Asia-Pacific
Alan Davy Director, Operations
Tadeu Marroco Director of Business Development
David O'Reilly Group Scientific Director
Ricardo Oberlander Regional Director, Americas
Naresh Sethi Regional Director, Western Europe
Johan Vandermeulen Regional Director, Eastern Europe, Middle East and Africa
Nicola Snook Secretary
Susan Farr Non-Executive Director
Marion Helmes Non-Executive Director
Savio Kwan Non-Executive Director
Pedro Malan Non-Executive Director
Dimitri Panayotopoulos Non-Executive Director

British American Tobacco PLC Group Headquarters: Globe House, 4 Temple Place, LONDON, WC2R 2PG, United Kingdom, Mike Nightingale
(Head - Investor Relations)

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Data Source: Reuters Fundamentals 12