The following discussion is based on and should be read in conjunction with the Company’s audited consolidated financial statements beginning on page 102 of this report. Key Factors Affecting Results of Operations The illicit market The illicit tobacco market has continued to increase since the COVID-19 pandemic, and is estimated to have reached just above 15% of total global volume in 2025. Exacerbated by the increased cost-of-living in many countries, overall illicit volumes are expected to approach an unprecedented level of sales by 2027. Illicit trade exists in all world regions. Its growth is forecast to continue to worsen especially in Australasia, and the Middle East and Africa, in the continued absence of effective enforcement and regulatory or fiscal changes. Global combustibles regulation Combustible tobacco products remain among the most tightly regulated consumer goods worldwide. Longstanding measures across many countries include restrictions on flavour additives, standardised (or plain) packaging, prohibitions on smoking in enclosed public spaces, and bans on retail product displays – all aimed at reducing the appeal, visibility and accessibility of tobacco. In recent years, regulation has intensified further, with many governments – often drawing on World Health Organization (WHO) guidance – setting ‘smoke- free’ or ‘tobacco endgame’ targets aimed at reducing adult smoking prevalence to below 5% within defined timeframes. To achieve these goals, some countries have begun considering more novel or interventionist approaches. One such approach is the generational sales ban (GSB), which would permanently prohibit the sale of cigarettes and other tobacco products to anyone born after a specified year. The UK is among the most prominent examples, with legislation under consideration that would ban sales to individuals born on or after 1 January 2009. The Maldives has enacted similar legislation, while the Turkish, Australian, Irish and Norwegian governments are among those reported to be evaluating comparable measures to various degrees. Individual lawmakers in other countries and regional assemblies have also attempted to introduce GSB-style bills. New Zealand and Malaysia were among the first countries to legislate for such policies but subsequently reversed course in 2023, citing concerns around enforcement, proportionality and constitutional compatibility. The real-world implications of a full generational ban – including any impact on illicit trade – remain uncertain. Other recent innovations include Canada and Australia’s introduction of requirements for individual health warnings to appear directly on cigarette sticks. Lastly, environmental considerations are increasingly shaping tobacco regulation. The European Union’s Single-Use Plastics Directive (SUP Directive) requires Member States to establish extended producer responsibility schemes covering products such as cigarette filters. The European Commission has commenced an evaluation of the SUP Directive – to be completed by July 2027 – to assess how it has worked in practice, collect evidence and opinions on whether the current measures are sufficient, and identify areas for improvement. Proposals to restrict, phase out or more tightly regulate the use of filters in cigarettes have been raised in a small number of countries. At the global level, negotiations to develop an internationally binding instrument on plastic pollution, including in the marine environment, remain ongoing. A number of stakeholders have advocated for the inclusion of measures specific to cigarette filters, signalling that sustainability issues are likely to be an increasing focus in future tobacco regulation. 29 British American Tobacco p.l.c. Form 20-F 2025 See also the Group risk factors related to legal, regulatory and compliance risks under Item 3.D and the section regarding the regulation of the Group’s business under Item 4.B for further details on regulation and the related risks. AI and Optimisation Artificial intelligence (AI) continues to transform how businesses operate, make decisions and engage with consumers. The integration of AI across product design, logistics and marketing has accelerated, delivering efficiency gains, deeper insights and more tailored experiences. Yet the full extent of AI’s benefits is still being realised. While some applications remain experimental or, in some cases, potentially overstated, others are already generating measurable productivity improvements and reshaping competitive dynamics. A changing workforce Automation and intelligent systems are redefining roles and organisational structures. As demand for digital and analytical skills grows, companies are rethinking talent strategies, upskilling employees and embedding AI into daily operations to boost performance and engagement. Those that adapt early are likely to capture significant productivity and innovation gains. Smarter decisions and empowered consumers AI is enabling businesses to anticipate consumer needs and optimise product design, sustainability and quality. While consumers are using AI to discover, compare and assess products, making informed, data-driven choices. The growing intersection of AI and personal health technology is also shaping behaviour. From wearable devices and digital health assistants to personalised wellness recommendations, consumers are using AI to better understand and manage their wellbeing. For the nicotine industry, these developments could influence how adult consumers seek information, evaluate alternatives and make more health-conscious decisions – reinforcing the importance of transparency, accuracy and innovation in product development. Continued transition to new products The rapid adoption of new, lower risk*† nicotine products is transforming the global market. The category of alternative products has expanded well beyond early vapour devices to include tobacco heating products (THPs), nicotine pouches, and – more recently – herbal products designed for heating. These innovations are increasingly popular among adult consumers seeking to continue using nicotine while avoiding the risks of combusting tobacco. This shift represents one of the most significant structural changes in the history of the nicotine sector. By 2028, the global number of adult smokers is projected to fall by around 20 million, driven both by evolving social attitudes towards smoking and the accelerating consumer migration towards RRPs*†. RRPs are forecast to account for a steadily rising share of total industry revenue, reflecting both consumer demand and continued product innovation. Within this landscape, HPs are expected to grow by around 28% in volume over 2024–2029, while nicotine pouches are forecast to grow by approximately 130%. Volume growth for vapour products is expected to remain inconsistent and broadly flat, reflecting continued legislative uncertainty and regulatory grey areas in key markets. New Categories Regulation While alternative nicotine products are becoming more established across global markets, there remains significant divergence in how RRPs*† are regulated. These products’ reduced-risk*† potential has been recognised by regulators in the UK and New Zealand, both of which have publicly stated that RRPs*† represent a lower risk alternative to continued smoking. These countries have introduced proportionate regulatory frameworks that reflect this position while maintaining strong safeguards to prevent underage access. Other markets, including Greece, the Czech Republic and Sweden, have also signalled cautious support for Tobacco Harm Reduction as a complementary public health approach. In contrast, several major markets – such as Brazil, Argentina, Mexico and India – remain sceptical of the potential public health benefits of RRPs*†. These countries have opted to impose broad restrictions or outright bans on product categories such as vapour products and tobacco heated products. Belgium and France, similarly, have prohibited the sale of nicotine pouches, while Kazakhstan has implemented a ban on vapour products. In other cases, governments have adopted more limited prohibitions – such as non-tobacco flavour bans or product-specific restrictions – that nevertheless reduce consumer choice. It is increasingly important that this debate be informed by evidence, ensuring that millions of adult smokers, who would otherwise continue to smoke, are not discouraged from switching to reduced-risk*† alternatives. The UK and Sweden illustrate how balanced, science-led regulations that make RRPs *† available to adult consumers can accelerate Tobacco Harm Reduction. The illicit RRP*† market Stricter nicotine regulations globally have also created significant challenges for the legitimate industry. For example, in 2024 the illicit market is estimated to have accounted for around 60% of global vapour product sales on a unit basis, being more than 76% of liquids (in litres) sold. We estimate that in the U.S. illegal flavoured and single-use vapour products account for 70% of the total U.S. vapour market. This rapid growth has in part been fuelled by regulatory gaps, particularly in regions with restrictive or unclear frameworks and inadequate enforcement. As a result, illicit products have proliferated the market. Beyond Nicotine1 The Wellbeing and Stimulation category covers products that consumers are seeking to better manage their daily wellbeing. It is expected to grow to £460 billion by 2030. Some consumers are also beginning to look at alternative stimulant products that use nicotine-like analogues such as Ceretine, Metatine and Hippotine. These substances replicate certain effects of nicotine. However, they are not regulated as such, placing analogue-based products in a regulatory grey area and keeping them niche at present. The nicotine and cannabis markets continue to evolve, and are expected to reach a combined US$1.2 trillion in value by 2029. While the growth of the adult- use cannabis market is predominantly concentrated in the U.S., the global cannabis market is anticipated to expand as more countries reassess their prohibitionist approaches. In Europe, Germany became the first major EU Member State to legalise personal cultivation and possession for recreational use in 2024, with Luxembourg and Malta taking similar steps and the Czech Republic legalising home cultivation and limited possession in 2026. This shifting regulatory environment reflects a broader global trend, as governments assess the health, social and economic implications of legalisation and seek to balance public health objectives with consumer preferences and emerging economic opportunities. The global legal recreational cannabis market has grown, from around £5 billion (2019) to £13 billion (2024)2. It is predicted to continue to grow by 8%3 each year, with non-combustible formats driving this category growth. We believe this is signalling a shift away from traditional smokable combustible cannabis formats into other, potentially less harmful, more progressive consumption methods. 1.Unless otherwise stated, all data sources within this section are from Euromonitor International research published in 2025 and based on 2024 data (the latest full year available), unless otherwise stated. All figures exclude China unless otherwise stated. 2.Euromonitor 2024 Market Sizing Data | Global. 3.Euromonitor 2024 Market Sizing Data | Global. 30 British American Tobacco p.l.c. Form 20-F 2025 Cost of Living Despite easing inflation in some regions, the cost of living remains a global challenge. Persistent pressures on energy, food and housing – alongside currency volatility and uneven wage growth – continued to influence consumption patterns worldwide in 2025. Entering 2026, higher living costs and constrained disposable income are prompting consumers across both developed and emerging markets to reassess spending priorities and value perceptions. Global shifts in consumer behaviour Consumers are becoming more deliberate in their purchasing choices – trading down in some categories, delaying discretionary spending and seeking promotions or discounts wherever possible. Meanwhile, health, wellbeing and digital lifestyle management continue to shape preferences, even in cost- conscious contexts. In emerging economies, affordability is a key driver of access and inclusion, while in more mature markets consumers are balancing price sensitivity with innovation, quality and sustainability. Balancing cost, health and value Brands that respond with affordable innovation, transparent value propositions and locally relevant offerings are best placed to maintain loyalty. For the nicotine industry, ensuring that Reduced-Risk Products*† (RRPs) remain accessible and competitively priced will be critical to supporting informed consumer choice globally. Fiscal and regulatory frameworks that reflect relative risk potential can help sustain affordability, encourage switching for those who would otherwise continue to smoke, and reinforce progress toward harm reduction in a cost-sensitive world. Geopolitics and Trade The global trading environment remains shaped by heightened geopolitical competition and economic realignment. As the policy shifts that followed the 2024 super-election cycle continue to take effect, governments are pursuing active approaches to industrial policy, supply-chain resilience and market access. These dynamics will continue to influence trade flows and business strategy through 2026 and beyond, underscoring the importance of stability and predictable global frameworks. Evolving trade architecture The world’s major economies – notably the U.S., China and the EU – are advancing distinct approaches to trade, technology and regulation. This has encouraged innovation and regional investment, while also creating growing complexity and uneven standards across markets. Greater international alignment around product quality, safety and sustainability standards will be essential to ensure fair competition, consumer protection and a level playing field within global markets. Building resilience As global trade becomes more fragmented, resilience will depend on flexibility, foresight and engagement with evolving regulations. Businesses that can adapt quickly will be best placed to manage disruption and maintain market continuity. For the nicotine industry, this means ensuring agile supply chains, strong compliance systems and active participation in global efforts to enhance consistency and mutual recognition of product standards. Notes: All data sources within this section are from Euromonitor International research published in 2025 and based on 2024 data (the latest full year available), unless otherwise stated. All figures exclude China unless otherwise stated. *Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive. †Products sold in the U.S., including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance. Results for the Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 Group Operating Review Accounting Policies The application of the accounting standards and the accounting policies adopted by the Group are set out in the Group Manual of Accounting Policies and Procedures (GMAPP). GMAPP includes the Group instructions in respect of the accounting and reporting of business activities, such as revenue recognition, asset valuations and impairment testing, adjusting items, the accrual of obligations and the appraisal of contingent liabilities, which include taxes and litigation. Formal processes are in place whereby central management and End Market management confirm adherence to the principles and the procedures and to the completeness of reporting. Central analyses and revision of information are also performed to ensure and confirm adherence. In order to prepare the Group’s consolidated financial information in accordance with IFRS, management has used estimates and assumptions that affect the reported amounts of revenue, expenses and assets, and the disclosure of contingent liabilities, at the date of the financial statements. Accounting Estimates The critical accounting estimates are described in note 1 in Part III - Item 18 Notes on the Accounts and include: –review of asset values, including goodwill and impairment testing; –estimation of provisions, including as related to taxation and legal matters, specifically in respect of the Approved Plans in the Canadian litigation settlement; and –estimation and accounting for retirement benefit cost. Accounting Judgements The critical accounting judgements are described in note 1 in Part III - Item 18 Notes on the Accounts and include: –identification and quantification of adjusting items; –determination as to the value of provisions and the exposures to contingent liabilities related to litigation (including as related to Canada) or other outstanding claims; –determination as to whether control (subsidiaries), joint control (joint arrangements), or significant influence (associates) exist in relation to investments held by the Group; –review of applicable exchange rates for transactions with and translation of entities in territories where there are restrictions on the free access to foreign currency or multiple exchange rates; and –the determination as to whether perpetual hybrid bonds should be classified as equity instead of borrowings. Revenue Reported revenue decreased 1.0% to £25,610 million, negatively impacted by a translational foreign exchange headwind of 3.1%. On a constant currency basis, revenue grew by 2.1%. Our performance was driven by: 31 British American Tobacco p.l.c. Form 20-F 2025 –The U.S. where revenue increased 2.3% to £11,534 million (up 5.5% at constant rates of exchange) driven by combustibles, which benefitted from both strong price/mix (including excise duty drawback) contributing +12.3% and the success of the Velo Plus launch (with Modern Oral up 297% to £317 million (up 310% at constant rates of exchange)).. These more than offset lower combustibles volume (down 7.7%) and lower revenue in Vapour (down 6.4% to £934 million, being a decrease of 3.4% at constant rates of exchange); –AME, which was up 0.7% to £9,309 million (up 3.3% at constant rates of exchange). This was led by combustibles price/mix (+7.2%) and the growth of Modern Oral (up 18.3% to £800 million, an increase of 17.3% at constant rates of exchange), which drove New Categories up 4.8% to £1,813 million (up 4.3% at constant rates of exchange) despite a decline in Vapour of 11.2% to £543 million (down 11.4% at constant rates of exchange); and –APMEA, which was down 10.9% to £4,767 million (down 7.2% at constant rates of exchange) due to regulatory and fiscal challenges in Australia and Bangladesh, partially offset by higher revenue in Pakistan, Nigeria and Indonesia. New Categories continued to grow, with revenue up 5.5% to £3,621 million (up 7.0% at constant rates of exchange) driven by Modern Oral (up 47.4% to £1,165 million, an increase of 48.0% at constant rates of exchange). While HP was down 0.7% to £914 million, this was an increase of 1.0% at constant rates of exchange)). However, Vapour declined 10.4% to £1,542 million (down 8.6% at constant rates of exchange) due to the continued impact of illicit products mainly in the U.S. and Canada and regulatory and excise changes in the UK, Poland and France and market exits. Refer to pages 34 to 37 for a discussion on regional performance and pages 37 to 40 for a further discussion on the performance by category. Profit From Operations Profit from operations on a reported basis was up 265%, with reported operating margin up 28.4 ppts to 39.0%. This was driven by lower adjusting items of £1,575 million (compared to £9,154 million in 2024), largely due to: –movements in respect of the Canadian litigation settlement. While 2024 included a charge of £6.2 billion, 2025 benefited from a net credit of £524 million following a change to the forecasted Canadian combustibles industry performance. This reduced the provision by £708 million (credit) but was partly offset by a goodwill impairment charge of £184 million, described on page 162; –the classification in 2025 of the Group's business in Cuba as held-for-sale, recognising a charge of £235 million (2024: £74 million); and –the partial release of the provision recognised in respect of an excise assessment in Romania (2025: £15 million credit; 2024: £449 million charge). Translational foreign exchange was a headwind of 3.1% or £364 million. On an adjusted, constant rates basis, profit from operations was up 0.4%, despite inflation on our product costs estimated to be 5.8% (or £315 million). This increase was largely due to the U.S., which was up 5.9%, and AME, up 1.7%. However, APMEA was down 17.9%, with the regional delivery largely driven by the respective revenue performance discussed above. The regional performance includes a total increase in New Categories contribution of £193 million to £442 million at constant rates. Included within the Group’s adjusted profit from operations was £308 million (2024: £520 million) related to the Canadian business, excluding New Categories. Raw materials and other consumables costs decreased 2.2% to £4,465 million in 2025, compared to £4,565 million in 2024. Our reported costs are impacted by translational foreign exchange, which was a tailwind in 2025. Our cost base was negatively impacted by the macro-economic headwinds, with inflation of £315 million (or 5.8%) in 2025 mainly due to higher leaf prices (impacted by adverse weather conditions) and manufacturing costs (labour and utilities). Results will likely continue to be impacted by inflationary forces (particularly related to tobacco leaf). Such pressures were offset by efficiency initiatives delivering £327 million in 2025 in total savings. We committed to deliver cost savings of over £1.2 billion in the three years to 2025 and have delivered £1.2 billion, in line with expectations. Transactional foreign exchange was also a negative drag to our performance, at £96 million in 2025, due to movement in our operating currencies largely against the US dollar. Employee benefit costs increased 10.4% to £3,125 million (2024: £2,831 million). The increase in 2025 was driven by salary inflation, a £28 million charge as the UK pension fund progressed towards a buy-out and a higher average overall headcount (2025: 50,290; 2024: 48,209), including an increased headcount in the U.S. in line with reinvestment in trade capabilities. Depreciation, amortisation and impairment costs declined by £554 million to £2,547 million in 2025 compared to £3,101 million in 2024. The charge largely relates to the amortisation of certain U.S. combustibles brands over a useful economic life not exceeding 30 years from 1 January 2024. However, the decrease was mainly due to a charge, in 2024, in respect of Camel Snus as the Group recognised an impairment charge of £646 million reflecting the U.S. market dynamics as consumers of traditional snus products increasingly adopt Modern Oral variants and which did not repeat. This was partly offset by the recognition in 2025 of goodwill impairment charges of £72 million in respect of Peru and £21 million (2024: £39 million) in respect of Malaysia in response to the ongoing difficult trading conditions. Also in 2025, a goodwill impairment charge of £184 million was recognised to reflect the revised forecast of the Group's Canadian business. These are described in notes 4 and 7 in Part III - Item 18 Notes on the Accounts. Expenditure on research and development, including employee benefit costs and depreciation, was £358 million in 2025 (2024: £380 million), with a focus on products that could potentially reduce the risk associated with smoking conventional cigarettes. Other operating income decreased by £148 million to £192 million (2024: £340 million), as income in 2024 included the settlement of historical litigation in respect of the Fox River (£132 million). Other operating expenses decreased by £7,198 million to £5,895 million (2024: increase of £5,555 million to £13,093 million). Both years have been impacted by the provision recognised in relation to the Canadian litigation settlement. In 2024, a charge of £6,203 million was recognised. In 2025, this was partially reversed, following a change to the forecasted Canadian combustibles industry performance impacting the present value of the future liability, partially offset by the finalisation of the terms of the settlement, resulting in a net credit of £708 million as described in note 24 in Part III - Item 18 Notes on the Accounts. Furthermore in 2024, the Group recognised a charge in respect of an excise assessment in Romania of £449 million, which was reduced by £15 million in 2025. The Group continued to invest in New Categories, maintaining the level of investment (in marketing spend and research and development) in line with 2024. The Group incurred £49 million (2024: £66 million) of costs related to recycling (Take-Back and waste collection schemes).These charges are described in note 33 in Part III - Item 18 Notes on the Accounts. Adjusting items included within profit from operations totalled £1,575 million in 2025 (2024: £9,154 million). These mainly related to: –trademark amortisation and impairment (2025: £1,584 million; 2024: £2,279 million) largely in respect of the impairment of certain of the U.S. acquired brands as discussed within note 12 in Part III - Item 18 Notes on the Accounts. The decrease in 2025 was mainly due to the adjustment for the impairment 32 British American Tobacco p.l.c. Form 20-F 2025 charge (in 2024) in respect of Camel Snus of £646 million. Also in 2025, a goodwill impairment charge of £184 million was recognised to reflect the revised forecast of the Group's Canadian business with goodwill impairment charges recognised of £72 million in respect of Peru and £21 million (2024: £39 million) in respect of Malaysia in response to the ongoing difficult trading conditions; –a net credit of £708 million in 2025 (compared to a charge of £6,203 million in 2024), in respect of the settlement provision in Canada discussed earlier; –a credit in 2025 of £15 million (compared to a charge of £449 million in 2024)in respect of an excise assessment in Romania; –a charge of £66 million mainly in respect of the Fit2Win programme, which will simplify the way we work, with increased agility and embedding digital decision making; –a charge of £39 million which related to the loss of a distribution facility in Ukraine following a missile attack in the second half of 2025; –a charge of £235 million related to the classification of the Group's business in Cuba as held-for-sale (2024: £74 million); –other litigation costs of £66 million (2024: £157 million) which, in both periods, was mainly in respect of U.S. litigation costs including Engle progeny and other health-related claims. Refer to note 6(d) in Part III - Item 18 Notes on the Accounts; –a charge of £28 million recognised in respect of the proposed pension liability management programme as the UK pension fund progressed towards a buy-out; –impairment charges in 2024 in respect of fixed assets related to the Group’s head office in London (£75 million) that did not repeat; and –a credit in 2024 as the Group settled the historical litigation in respect of the Fox River (£132 million). Adjusted profit from operations is the Group’s profit from operations before adjusting items referred to above. Adjusted profit from operations decreased by 2.7% to £11,572 million (2024: £11,890 million). On a constant currency basis, this was an increase of 0.4%. New Categories continued to improve their financial performance. Included within the Group’s adjusted profit from operations was £308 million (2024: £520 million) related to the Canadian business, excluding New Categories. Operating Margin Operating margin in 2025 was up 28.4 ppts to 39.0% compared to 10.6% in 2024. This improvement was largely due to the net impact of lower one-off items described earlier, including the net impact of charges in respect of the provision recognised in relation to the Canadian settlement. Excluding the adjusting items and the impact of translational foreign exchange, in 2025, adjusted operating margin decreased by 80 bps to 45.2% from 46.0% in 2024 at constant rates of exchange. The decrease was driven by the difficult trading in high margin markets including Australia and Canada which more than offset the improved financial performance of New Categories. Net Finance Costs In 2025, net finance costs were £1,819 million, an increase of £721 million on 2024 which were £1,098 million. The increase in net finance costs was largely due to: –a net credit in 2024 of £590 million related to the capped cash debt tender offers, which targeted series of low-priced, long-dated GBP-, EUR- and USD- denominated bonds, under which the Group repurchased bonds prior to their maturity in an aggregate principal amount of £1.8 billion, including £15 million of accrued interest, completed in May 2024 and, including other costs of £3 million; –a charge, in 2025, of £112 million related to the unwinding of the discount on the provision associated with the Approved Plans in Canada; –interest of £66 million (2024: £8 million) in respect of a tax provision in the Netherlands (described in note 8 in Part III - Item 18 Notes on the Accounts); partly offset by –a net monetary gain of £63 million related to Venezuela, due to the continued application of hyperinflation accounting under IAS 29; and –lower finance costs related to FII GLO of £30 million (2024: £61 million), discussed within note 10(b) in Part III - Item 18 Notes on the Accounts. Before adjusting items described above, adjusted net finance costs were 3.8% higher at £1,649 million (2024: £1,589 million), an increase of 5.5% at constant rates of exchange, as 2025 was also impacted by a translational foreign exchange tailwind due to the relative movement of sterling of 1.7%. This was largely due to lower interest income mainly related to balances held in Canada, as £2.6 billion was paid in line with the Approved Plans (discussed on page 162) with interest income (net of fair value gains on derivatives) in Canada reducing from £126 million in 2024 to £57 million in 2025. The Group’s average cost of debt was 5.0% in 2025, compared to 4.9% in 2024. In 2021, the Group issued perpetual hybrid bonds totalling €2 billion. During 2025, the Group repurchased €1 billion of perpetual hybrid bonds and issued a further €1.2 billion of perpetual hybrid bonds. The perpetual hybrid bonds are recognised, in line with IAS 32 Financial Instruments, as equity. Interest on such instruments is recognised in reserves rather than as a charge to the income statement in net finance costs. Accordingly, in 2025, in line with IAS 33 Earnings Per Share, £87 million (2024: £42 million) has been recognised as a deduction from earnings similar to non-controlling interests. The Group has debt maturities of around £2.4 billion in 2026 and around £2.9 billion in 2027. Due to higher interest rates, net finance costs are expected to increase as debts are refinanced. Associates and Joint Ventures Associates largely comprised the Group’s shareholding in its Indian associate, ITC Limited (ITC) with investments in other associates including Organigram Global Inc. (Organigram). The Group’s share of post-tax results of associates and joint ventures, included at the pre-tax level under IFRS, decreased from £1,900 million to £1,681 million in 2025. ITC and ITC Hotels The Group’s share of post-tax results in respect of ITC was 12.3% lower at £1,672 million (2024: £1,906 million). In 2025, the Group recognised a credit of £333 million (net of tax) as an adjusting item, being the Group’s share of a gain recognised by ITC following the demerger of ITC’s hotel business (ITC Hotels) that was completed on 1 January 2025. The Group’s initial direct stake was approximately 15% and recognised as a non-current investment on the balance sheet held at fair value through Other Comprehensive Income. In December 2025, the Group sold 9% of ITC Hotels in a block trade with the retained direct stake reduced to 6.3%. Please see note 14 in Part III - Item 18 Notes on the Accounts. Net proceeds from the sale amounted to £318 million. However, the credit to the Income Statement was more than offset by a lower gain in respect of the sale by the Group of shares held in ITC. In 2025, the Group sold 313.0 million ordinary shares held in ITC, realising a gain of £898 million. This compares to a gain of £1,361 million in 2024 when the Group sold 436.9 million ordinary shares. The sale in 2025 represents 2.5% (2024: 3.5%) of ITC's ordinary shares. The gains have been treated as an adjusting item in both years. Included in the results for 2025 and 2024 are other adjusting items, which included a deemed gain of £6 million in 2025 (2024: £18 million), arising on the deemed disposal of part of the Group’s shareholding in ITC (due to issuances of ordinary shares under the ITC Employee Share Option Scheme). 33 British American Tobacco p.l.c. Form 20-F 2025 As a result of the above, the Group's share of ITC has reduced from 25.45% (31 December 2024) to 22.91% at 31 December 2025. Organigram Global Inc. On 28 February 2025, the Group made the third and final tranche investment in Organigram for CAD$42 million (£23 million), subscribing for 7,562,447 common shares and 5,330,728 preferred shares at a price of CAD$3.22 per share. As a result of this investment, BAT's ownership in Organigram increased to 36.8%. VST Industries Limited One of our associates, VST Industries Limited, recognised an adjusting gain in relation to a sale of land and buildings. The Group's share of this gain was £3 million. Excluding such adjusting items and the impact of translational foreign exchange, the Group’s share of associates and joint ventures on an adjusted, constant currency basis declined 8.6% in2025 to £475 million (2024: £521 million), largely driven by the reduction in the Group’s shareholding in ITC. Analysis of Profit from Operations, Net Finance Costs and Results from Associates and Joint Ventures - 2025 At constant rates1 Reported£m Adjusting items£m Adjusted £m Impact of exchange£m Adjustedat CC1£m Profit from operations U.S. 4,942 1,601 6,543 223 6,766 AME 3,433 (128) 3,305 72 3,377 APMEA 1,622 102 1,724 69 1,793 Total regions 9,997 1,575 11,572 364 11,936 Net finance costs (1,819) 170 (1,649) (27) (1,676) Associates and joint ventures 1,681 (1,239) 442 33 475 Profit before tax 9,859 506 10,365 370 10,735 Analysis of Profit from Operations, Net Finance Costs and results from Associates and Joint Ventures - 2024 Reported£m Adjusting items£m Adjusted£m Profit/(loss) from operations U.S. 4,087 2,299 6,386 AME (3,464) 6,784 3,320 APMEA 2,113 71 2,184 Total regions 2,736 9,154 11,890 Net finance costs (1,098) (491) (1,589) Associates and joint ventures 1,900 (1,379) 521 Profit before tax 3,538 7,284 10,822 Notes: 1.As translated in 2024 rates of exchange. Tax In 2025, the tax charge in the income statement was £2,094 million, compared to £357 million in 2024. The effective tax rates in the income statement were therefore 21.2% in 2025 and 10.1% in 2024. These are affected by the inclusion of adjusting items described earlier and the associates and joint ventures’ post- tax profit in the Group’s pre-tax results. Excluding these items, the underlying tax rate for subsidiaries was 24.6% in 2025 and 24.9% in 2024. The marginal decrease in the underlying tax rate in 2025 largely reflects the mix of profits and changes in legislation (including the new Pillar Two rules, described in note 10(c) in Part III - Item 18 Notes on the Accounts). See the section Non-GAAP measures on page 46 for the computation of underlying tax rates for the periods presented. In September 2025, the Court of Appeal issued its judgment in respect of the ongoing tax disputes in the Netherlands. While further avenues of appeal are being pursued, the Group has increased the provision by £171 million, with a total provision of £326 million at 31 December 2025. Please refer to the Tax Disputes section within note 31 in Part III - Item 18 Notes on the Accounts of the Notes to the Accounts for further information. Earnings Per Share Profit for the year was £7,765 million, up 144.1% (2024: £3,181 million). The improvement largely relates to the lower net impact in respect of the Canadian settlement described on page 162. In both 2025 and 2024, the Group undertook a share repurchase programme, totalling £1.1 billion and £0.7 billion respectively. These reduced the number of shares (for the purposes of the EPS calculation) by 0.67% (2024: 0.62%). After accounting for the movement in non-controlling interests in the year, basic earnings per share were 351.0p (2024: 136.7p). Diluted earnings per share were 349.1p in 2025, compared to 136.0p in 2024. Earnings per share (EPS) are impacted by the adjusting items discussed earlier. Adjusted diluted EPS, as calculated in note 11 in Part III - Item 18 Notes on the Accounts, was 2.9% lower in 2025 at 352.1p, with 2024 at 362.5p. Adjusted diluted EPS at constant rates would have been 0.7% ahead of 2024 at 365.0p. Included within the Group’s adjusted diluted EPS at constant rates was 12.2p (2024: 21.4p) related to the Canadian business, excluding New Categories. 34 British American Tobacco p.l.c. Form 20-F 2025 Regional Review United States Top Markets: The U.S. is a top market for Cigarettes, Vapour, Modern Oral and Traditional Oral products Volume (units) 2025 vs 2024 2024 New Categories: Vapour (units mn) 262 -8.8% 287 HP (sticks bn) — — — Modern Oral (pouches bn) 3.5 +249% 1.0 Traditional Oral (stick eq bn) 4.8 -8.9% 5.3 Cigarettes (bn sticks) 43 -7.7% 47 Other (bn sticks eq)* 1 -0.1% — Total Combustibles 44 -7.7% 47 Notes: *Other includes MYO/RYO. Revenue (£m) 2025 vs 2024 2025 2025 vs 2024(adj at cc) 2024 Reported % FX at CC % Reported New Categories: Vapour 934 -6.4% 29 963 -3.4% 998 HP — — — — — — Modern Oral 317 +297% 10 327 +310% 80 Total New Categories 1,251 +16.1% 39 1,290 +19.8% 1,078 Traditional Oral 1,006 -5.0% 31 1,037 -2.0% 1,058 Total Smokeless 2,257 +5.6% 70 2,327 +9.0% 2,136 Combustibles 9,218 +1.4% 295 9,513 +4.6% 9,094 Other 59 +23.2% 4 63 +27.5% 48 Revenue 11,534 +2.3% 369 11,903 +5.5% 11,278 % of Smokeless 19.6% +70 bps 18.9% Revenue In 2025, revenue increased 2.3%, despite a translational foreign exchange headwind, negatively impacting revenue by 3.2%. On a constant currency basis, which we believe reflects the operational performance, revenue increased 5.5%. This was driven by the performance in: Combustibles Revenue was up 1.4% to £9,218 million. On a constant currency basis, revenue increased 4.6%, as the positive impact of price/mix (including excise duty drawback) of +12.3% more than offset a 7.7% reduction in volume, compared to the industry volume decline of 7.4%. The U.S. combustibles industry continues to be negatively impacted by the adult nicotine consumer migration to alternative nicotine products (Vapour and pouches). The level of poly-usage for combustibles consumers continued to increase as part of the consumer migration journey, reaching 53% in 2025, up 4 ppts from 2023. In addition, continued consumer affordability pressure resulted in downtrading to the deep-discount category (in which the Group is not present). Our volume share was down 10 bps while value share was up 30 bps following the commercial actions taken in 2024 to deliver sustainable value. New Categories Revenue was up 16.1% to £1,251 million, an increase of 19.8% (at constant rates of exchange), driven by: –Modern Oral, where revenue increased by 297% (or 310% at constant rates of exchange), driven by higher volume (up 249%), following the successful national roll-out of Velo Plus. Accordingly, our category volume share was up 11.6 ppts to 18.0% with value share growth of 9.1 ppts to 13.1%. This performance has positioned Velo as the fastest growing brand in the category, reaching the number 2 position in both volume and value share. While we await the outcome of our PMTA submission for new Velo variants, we have invested in higher capacity to support our sustainable growth agenda. In addition, in August 2025, we expanded distribution of Grizzly nicotine pouches, reaching 1.8% national share by December 2025 - successfully capturing Grizzly Traditional Oral consumers interacting with the Modern Oral category. This was partly offset by: –Vapour, where the U.S. is the world's largest market. Revenue was down 6.4%, a decline of 3.4% at constant rates of exchange, as price/mix (+5.4%) was offset by an 8.8% decline in consumables volume driven by an industry decline of c.9% mainly due to the continued impact of illicit single-use vapour products. There are encouraging signs for Vuse with the brand back to revenue growth in the second half of 2025 driven by increased enforcement at a Federal and State level. We remain optimistic that Vuse will benefit as the authorities continue with enforcement initiatives in 2026. We maintained leadership in value share with an increase in value share of 2.0 ppts to 51.7%*; and *Based on estimated value share for Vapour in tracked channels (i.e., value share of rechargeable closed systems consumables and disposables sales in retail) in the Top Vapour markets. Top Vapour markets are defined as the Top markets by industry revenue, being the U.S., Canada, the UK, France, Germany, Poland and Spain. These Top markets account for c.80% of total industry vapour revenue (rechargeable closed systems consumables and disposables in tracked channels) in 2024. Traditional Oral Revenue was down 5.0% (down 2.0% on a constant currency basis), as price/mix (+6.9%) was more than offset by lower volume (down 8.9%) due to the continued Poly-use* of Modern Oral by Traditional Oral consumers. 35 British American Tobacco p.l.c. Form 20-F 2025 Value share in the U.S. decreased 40 bps, with volume share down 40 bps, negatively impacted by consumer migration predominantly in the aspirational premium segment, where Grizzly is positioned. *Refers to consumers consuming two or more tobacco and/or nicotine products. Profit from Operations Reported profit from operations increased by 20.9% to £4,942 million (2024: £4,087 million), as both an impairment charge of £646 million in respect of Camel Snus (see page 31) and income (£132 million) related to Fox River recognised in 2024 did not repeat. Accordingly, reported operating margin was up 6.6 ppts to 42.8% (2024: 36.2%). Excluding adjusting items (largely in respect of amortisation, impairment charges and income related to Fox River recognised in 2024) and a translational foreign exchange headwind of £223 million, our performance was positively impacted by the growth in revenue (described above). At constant rates of exchange, adjusted profit from operations was up 5.9% to £6,766 million, with adjusted operating margin up 20 bps. Update on regulation We are encouraged by the FDA's actions, the implementation of vapour directories and enforcement actions in 18 states, representing 48% of the legal Vapour industry^. There are positive signs of illicit disposables decline and legal industry recovery in eight states (approximately 22% of the legal industry^). However, we believe more effective enforcement is needed to drive a meaningful impact and legalise the vapour industry. This is why we took the proactive step of filing two complaints with the U.S. International Trade Commission. One of those complaints is based on patent infringement while the other is based on unfair trade practices. Notes: ^Data sourced from tracked retail channels. Also, as stated on the pages above, based upon the published science, we believe that a ban on menthol cigarettes would negatively affect, not benefit, public health. We believe a ban on menthol is contrary to the FDA’s stated goal of reducing the health effects of tobacco use. AME Top Markets: Cigarettes: Brazil, Germany, Mexico and Romania HP: Germany, Greece, Italy, Poland, Portugal, Romania, Spain and the Czech Republic Vapour: Canada, France, Germany, Poland, Spain and the UK Modern Oral: Denmark, Norway, Poland, Sweden, Switzerland and the UK Volume (units) 2025 vs 2024 2024 New Categories: Vapour (units mn) 244 -11.6% 276 HP (sticks bn) 8 -3.4% 8 Modern Oral (pouches bn) 7.5 +19.0% 6.3 Traditional Oral (stick eq bn) 0.7 -10.3% 0.8 Cigarettes (bn sticks) 227 -4.5% 238 Other (bn sticks eq)* 10 -12.4% 11 Total Combustibles 237 -4.9% 249 Notes: *Other combustibles includes MYO/RYO. Revenue (£m) 2025 vs 2024 2025 2025 vs 2024(adj at cc) 2024 Reported % FX at CC % Reported New Categories: Vapour 543 -11.2% (1) 542 -11.4% 611 HP 470 +6.2% 1 471 +6.2% 443 Modern Oral 800 +18.3% (6) 794 +17.3% 676 Total New Categories 1,813 +4.8% (6) 1,807 +4.3% 1,730 Traditional Oral 37 +9.9% (1) 36 +5.1% 34 Total Smokeless 1,850 +4.9% (7) 1,843 +4.4% 1,764 Combustibles 6,974 -0.9% 226 7,200 +2.3% 7,039 Other1 485 +10.8% 20 505 +15.7% 438 Revenue 9,309 +0.7% 239 9,548 +3.3% 9,241 % of smokeless 19.9% +80 bps 19.1% Note: 1.Other revenue in AME largely relates to sales of leaf to external parties and revenue from warehousing and distribution of other fast moving consumer goods. Revenue Reported revenue was up 0.7%, negatively impacted by a translational foreign exchange headwind of 2.6%. On a constant currency basis, which we believe reflects the operational performance, revenue increased by 3.3% to £9,548 million. This was driven by the performance in: Combustibles Revenue was down 0.9% to £6,974 million, negatively impacted by a translational foreign exchange headwind of 3.2%. 36 British American Tobacco p.l.c. Form 20-F 2025 On a constant currency basis, revenue was 2.3% higher, largely driven by higher volume and pricing in Türkiye, Brazil and Mexico. These factors combined with robust pricing in Romania to more than offset a reduction in revenue in Canada (due to lower price/mix and volume) and Germany (driven by lower volume). Cigarette value share was down 70 bps in 2025. Cigarette volume share grew 10 bps with volume share up in Brazil and Mexico partially offset by Romania and Germany. New Categories Revenue was up 4.8% to £1,813 million, an increase of 4.3% at constant rates of exchange, driven by: –Modern Oral, where we are category leaders, with volume up 19.0%. Revenue grew 18.3% or 17.3% at constant rates of exchange, while volume share of the Modern Oral category was down 20 bps. The volume and revenue growth reflects the strength of our portfolio in both established oral markets across Scandinavia, and markets that are more recent adopters of Modern Oral such as the UK, Switzerland and Austria; and –HP (revenue up 6.2% or 6.2% at constant rates of exchange), as higher revenue in Italy and Germany was partly offset by lower revenue in Romania largely due to the prioritisation of resource allocation ahead of the wider roll-out of glo Hilo in the region. These more than offset a decline from: –Vapour (revenue down 11.2% or 11.4% at constant rates of exchange), largely driven by a decline in revenue in Canada (due to the continued lack of enforcement against illegal flavoured vapour products) and regulatory and excise changes in the UK, Poland and France. Our value share* leadership was down 60 bps with gains in Germany more than offset by a value share decline in Canada. Our new premium innovation, Vuse Ultra, offers consumers a highly differentiated, connected and customisable experience. We are encouraged by the early performance in Canada, Germany and France. Our strategic focus is to drive growth in Vapour through premiumisation of rechargeable closed system products (including via Vuse Ultra) while approaching the single-use product category, where relevant, in a responsible way. *Based on estimated value share for Vapour in tracked channels (i.e., value share of rechargeable closed systems consumables and disposables sales in retail) in the Top Vapour markets. Profit from Operations Reported profit from operations increased to a profit of £3,433 million (from a loss of £3,464 million in 2024), largely due to movements in respect of the Canadian litigation settlement. While 2024 included a charge of £6.2 billion, 2025 benefited from a net credit of £524 million following a change to the forecasted Canadian combustibles industry performance. This reduced the provision by £708 million (credit) but was partly offset by a goodwill impairment charge of £184 million. Please see note 6(c) and 24 (for more information on the movement in the provision) and note 12(e)(vii) (for more information on goodwill) in Part III - Item 18 Notes on the Accounts. Our performance was also negatively impacted by: –the classification in 2025 of the Group's business in Cuba as held-for-sale, recognising a charge of £235 million (2024: £74 million) as discussed on page 170; –a charge of £39 million which related to the loss of a distribution facility in Ukraine following a missile attack in the second half of 2025; and –a goodwill impairment charge in Peru (£72 million) recognised due to the ongoing difficult trading conditions. These were partially offset by a credit of £15 million in respect of an excise audit in Romania (2024: £449 million charge). Other fixed asset charges of £75 million in 2024 did not repeat. Our performance was also negatively impacted by a translational foreign exchange headwind of £72 million or 2.2%. Excluding the impact of currency and adjusting items (described above), the regional performance was driven by: –Brazil (due to combustibles with higher volume and pricing); –Romania (driven by pricing in combustibles); and –Türkiye (led by the revenue performance in combustibles). The increase was also due an improved financial performance across our New Categories; notably in Modern Oral (driven by Sweden, Switzerland and Italy), Vapour (which became profitable on a category contribution basis) and a reduction in losses in HP driven by resource allocation. At constant rates of exchange, adjusted profit from operations was up 1.7% in 2025. Included within the Region’s adjusted profit from operations was £308 million (2024: £520 million) related to the Canadian business, excluding New Categories. APMEA Top Markets: Cigarettes: Japan and Pakistan HP: Japan and South Korea Volume (units) 2025 vs 2024 2024 New Categories: Vapour (units mn) 32 -38.2% 53 HP (sticks bn) 12 -3.9% 13 Modern Oral (pouches bn) 1.2 +24.7% 1.0 Traditional Oral (stick eq bn) — 0.0% 0.0 Cigarettes (bn sticks) 195 -11.6% 220 Other (bn sticks eq)* 1 -26.9% 2 Total Combustibles 196 -11.7% 222 Note: *Other combustibles includes MYO/RYO. 37 British American Tobacco p.l.c. Form 20-F 2025 Revenue (£m) 2025 vs 2024 2025 2025 vs 2024 (adj at cc) 2024 Reported % FX at CC % Reported New Categories: Vapour 65 -41.2% 3 69 -39.4% 112 HP 444 -7.0% 12 465 -3.8% 478 Modern Oral 48 +39.8% 1 47 +44.2% 34 Total New Categories 557 -10.6% 16 581 -7.6% 624 Traditional Oral — 0.0% — — 0.0% — Total Smokeless 557 -10.6% 16 581 -7.6% 624 Combustibles 4,009 -11.9% 177 4,199 -8.3% 4,552 Other 201 +16.3% 12 209 +23.7% 172 Revenue 4,767 -10.9% 205 4,989 -7.2% 5,348 % of smokeless 11.7% Flat 11.7% Revenue In 2025, revenue declined 10.9% to £4,767 million. Translational foreign exchange was a headwind of 3.7%. On a constant currency basis, which we believe reflects the operational performance, revenue was down 7.2%. This was largely driven by: Combustibles Revenue was down 11.9% to £4,009 million. On a constant currency basis, revenue declined 8.3%, largely due to the regulatory and fiscal challenges impacting combustibles in Australia and Bangladesh, partly offset by higher combustibles revenue in Nigeria, Indonesia and Pakistan. Our combustibles value share declined 40 bps in 2025 with volume share down 40 bps as volume share gains in Pakistan were more than offset by reductions in Japan. New Categories New Categories revenue was down 10.6% to £557 million, a decline of 7.6% at constant rates of exchange. Revenue grew in Modern Oral (up 39.8% to £48 million, an increase of 44.2% at constant rates of exchange) with strong revenue growth in Global Travel Retail (GTR), Pakistan, Japan and South Africa. However, this was more than offset by a reduction in: –HP (down 7.0% to £444 million, or a decline of 3.8% at constant rates of exchange), largely driven by Japan (which remains highly competitive alongside the continued phase-out of our legacy super-slims platform) and South Korea, partially offset by a strong performance in Kazakhstan; and –Vapour, as volume was down 38.2%, leading to a 41.2% reduction in revenue to £65 million, being a decline 39.4% at constant rates of exchange. This was largely driven by lower volume in South Africa and New Zealand and by the Group exiting the category in a number of markets (including Malaysia and Saudi Arabia). Profit from Operations Profit from operations was down 23.3% to £1,622 million (2024: £2,113 million), including a translational foreign exchange headwind of £69 million or 3.2%. The lower profit from operations was mainly driven by the revenue movements above. In 2025, the Group recognised a further impairment charge of £21 million (2024: £39 million) in respect of Malaysia in response to the ongoing difficult trading conditions. Excluding adjusting items and translational foreign exchange, adjusted profit from operations at constant rates was down 17.9% to £1,793 million driven by: –Australia, due to continued increases in the illicit segment which we estimate now accounts for more than 65% of the combustibles industry volume, with the duty paid combustibles industry volume down more than 40% in 2025; and –Bangladesh, driven by the increase in excise and minimum price in January 2025, necessitating an increase in consumer prices by 20-30%, which resulted in a reduction in the duty paid combustibles industry volume by more than 20%. However, these were partly offset by an increase in Pakistan (led by the growth of Modern Oral and pricing in combustibles), Nigeria (driven by higher combustibles volume and improved combustibles pricing) and Indonesia (driven by higher combustibles volume and pricing). For more details on the segmental analysis, please refer to note 2 in Part III - Item 18 Notes on the Accounts. Please refer to page 28 for further details on our views regarding regulation affecting the Group’s results as well as for a discussion on regulatory developments in Combustibles during 2025 and 2024. Category Review Vapour - Vuse Vapour consumables volume declined 12.6% to 538 million units in 2025. Led by Vuse, BAT maintained global Vapour value share* leadership with an increase in full-year closed system value share of 60 bps vs 2024. Consumers of our Vapour products increased by 0.6 million to 12.7 million. Proportion of Vapour revenue by region 2025£m 2024£m U.S. 934 998 AME 543 611 APMEA 65 112 Total 1,542 1,721 Group Vapour performance was negatively impacted by: 38 British American Tobacco p.l.c. Form 20-F 2025 –The U.S., the world's largest Vapour market, where Group volume was down 8.8% mainly due to the continued proliferation of illicit single-use vapour products. Accordingly, revenue was down 6.4% (or 3.4% on a constant currency basis). However, we are encouraged by recent signs of Vuse returning to revenue growth in the second half of 2025 in the U.S. supported by increased enforcement against illicit single-use vapour products. We maintained leadership in value share with an increase in value share of 2.0 ppts to 51.7%*; –AME, where revenue was 11.2% lower (a decline of 11.4% on a constant currency basis), largely driven by a decline in revenue in Canada (due to the continued lack of enforcement against illegal flavoured vapour products) and regulatory and excise changes in the UK, Poland and France. Our value share* leadership was down 60 bps with gains in Germany more than offset by a value share decline in Canada; and –APMEA, where volume declined 38.2%, leading to a 41.2% reduction in revenue (being down 39.4% at constant rates), largely driven by lower volume in South Africa and New Zealand and by the Group exiting the category in a number of markets (including Malaysia and Saudi Arabia). Our new premium innovation, Vuse Ultra, offers consumers a highly differentiated, connected and customisable experience. We are encouraged by the early performance in Canada, Germany and France. *Based on estimated value share for Vapour in tracked channels (i.e., value share of rechargeable closed systems consumables and disposables sales in retail) in the Top Vapour markets. Top Vapour markets are defined as the Top markets by industry revenue, being the U.S., Canada, the UK, France, Germany, Poland and Spain. These Top markets account for c.80% of total industry vapour revenue (rechargeable closed systems consumables and disposables in tracked channels) in 2024. Heated Products (HP) - glo Proportion of Heated Products revenue by region 2025£m 2024£m U.S. 0 0 AME 470 443 APMEA 444 478 Total 914 921 In 2025, total consumables volume declined 3.7% to 20.1 billion sticks. In 2025, glo HP category volume share in the Top markets* declined 1.5 ppts impacted by competitive pressure in Japan and phase-out of legacy super- slims. Revenue was marginally lower, down 0.7% to £914 million (2024: £921 million). However, excluding the impact of the relative movements in sterling, at constant rates of exchange revenue increased 1.0% in 2025 driven by Quality Growth focus in the largest profit pools. In AME, volume was down 3.4%, with revenue up 6.2% (being an increase of 6.2% at constant rates), as higher revenue in Italy and Germany was partly offset by lower revenue in Romania largely due to the prioritisation of resource allocation ahead of the wider roll-out of glo Hilo in the region. In APMEA, volume was down 3.9%, with revenue down 7.0%, or 3.8% at constant rates, largely driven by Japan (which remains highly competitive alongside the continued phase-out of our legacy super-slims platform) and South Korea, partially offset by a strong performance in Kazakhstan. glo Hilo and glo Hilo Plus are our new premium connected devices which provide adult consumers with superior dual-heating technology and an integrated display, combined with a new consumables range, Virto and tobacco-free Rivo. We have continued the roll-out through 2025, with launches in Japan, Poland and Italy. * Volume share is based upon the Top HP markets, which are defined as the Top markets by industry revenue. Top markets are Japan, South Korea, Italy, Germany, Greece, Poland, Romania, the Czech Republic, Spain and Portugal. These Top markets account for c.80% of total industry HP revenue in 2024. Modern Oral - Velo Proportion of Modern Oral revenue by region 2025£m 2024£m U.S. 317 80 AME 800 676 APMEA 48 34 Total 1,165 790 2025 maintained the momentum from 2024 with growth in volume and value. Volume was up 47.1% to 12.2 billion pouches. Revenue increased 47.4% to £1,165 million. Excluding the impact of foreign exchange, this was an increase of 48.0% in 2025 supported by price/mix of 0.9%. Volume share of the Modern Oral category in our Top markets** was 33.4%, up 7.5 ppts compared to 2024. This was driven by the U.S. where our volume share of Modern Oral increased by 11.6 ppts to 18.0%. In AME, where we are category leaders, our volume was up 19.0%, with revenue up 18.3% (up 17.3% at constant rates) while volume share of the Modern Oral category was down 20 bps. The volume and revenue growth reflects the strength of our portfolio in both established oral markets across Scandinavia, and markets that are more recent adopters of Modern Oral such as the UK, Switzerland and Austria. In the U.S., revenue increased by 297% (or 310% at constant rates), driven by higher volume (up 249%), following the successful national roll-out of Velo Plus. Accordingly, our category volume share was up 11.6 ppts to 18.0% with value share growth of 9.1 ppts to 13.1%. This performance has positioned Velo as the fastest growing brand in the category, reaching the number 2 position in both volume and value share. While we await the outcome of our PMTA submission for new Velo variants, we have invested in higher capacity to support our sustainable growth agenda. In addition, in August 2025, we expanded distribution of Grizzly nicotine pouches, reaching 1.8% national share by December 2025 - successfully capturing Grizzly Traditional Oral consumers interacting with the Modern Oral category. In APMEA, our volume grew 24.7% and our revenue grew 39.8% (up 44.2% at constant rates), with strong revenue growth in Global Travel Retail (GTR), Pakistan, Japan and South Africa. We continue to seek opportunities and develop the category in other markets as we believe that Modern Oral is an exciting longer-term opportunity to commercialise reduced-risk products*†. *Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive. **Volume share is based upon the Top Modern Oral markets which are defined as the Top markets by industry revenue, being the U.S., Sweden, Denmark, Norway, Switzerland, the UK and Poland, accounting for c.90% of total industry Modern Oral revenue in 2024. †Products sold in the U.S., including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance. 39 British American Tobacco p.l.c. Form 20-F 2025 Traditional Oral Proportion of Traditional Oral revenue by region 2025£m 2024£m U.S. 1,006 1,058 AME 37 34 APMEA 0 0 Total 1,043 1,092 Total revenue decreased 4.5% to £1,043 million from £1,092 million in 2024. Translational foreign exchange was a headwind in 2025 of 2.8% due to the relative movement of sterling. On a constant rates basis, revenue fell 1.7% in 2025. In 2025, volume declined 9.1% to 5.5 billion stick equivalents. While pricing remained strong (2025: +7.4%; 2024: +4.8%), this was more than offset by the volume decline. In the U.S. (which accounts for 96% of Group revenue from the category), revenue declined 5.0% or 2.0% at constant rates of exchange, as price/mix was insufficient to offset the volume decline of 8.9%, due to the continued Poly-use^ with Modern Oral. Value share in the U.S. decreased 40 bps, with volume share down 40 bps, negatively impacted by consumer migration predominantly in the aspirational premium segment, where Grizzly is positioned. Outside the U.S., revenue grew 9.9% or 5.1% at constant rates of exchange as pricing more than offset a 10.3% decline in volume in 2025. Due to the ongoing U.S. market dynamics, as discussed on page 131, in 2024, the Group recognised an impairment charge of £646 million in respect of the carrying value of Camel Snus. This reflects the reduced sales as consumers switch to alternative products including Modern Oral. Commencing 1 January 2025, Camel Snus has been assigned a 20-year useful economic life and commenced amortisation from that date which approximates to £22 million annually. ^Refers to consumers consuming two or more tobacco and/or nicotine products. Combustibles Performance Summary Proportion of Combustibles revenue by region 2025£m 2024£m U.S. 9,218 9,094 AME 6,974 7,039 APMEA 4,009 4,552 Total 20,201 20,685 Group cigarette volume was down 7.9% to 465 billion sticks as volume growth in Türkiye, Nigeria, Indonesia and Brazil was more than offset by lower volume in a number of markets, mainly driven by Bangladesh, the U.S. and Poland and market exits (including Mali). Revenue from combustibles declined 2.3% to £20,201 million, up 1.0% at constant rates of exchange as the Group benefitted from a robust price/mix (including U.S. excise duty drawback) of +9.1%. This was partly offset by the lower volume (down 8.1%). Our revenue performance was driven by: –the U.S., where revenue increased 1.4% or 4.6% at constant rates of exchange, as the positive impact of price/mix (including excise duty drawback) of +12.3% more than offset a 7.7% reduction in volume, compared to the industry volume decline of 7.4%. Our volume share was down 10 bps while value share was up 30 bps following the commercial actions taken in 2024 to deliver sustainable value; –AME, where revenue was down 0.9% due to translational foreign exchange. At constant rates of exchange, revenue was 2.3% higher, largely driven by higher volume and pricing in Türkiye, Brazil and Mexico. These factors combined with robust pricing in Romania to more than offset a reduction in revenue in Canada (due to lower price/mix and volume) and Germany (driven by lower volume); and –APMEA, where revenue was down 11.9% or 8.3% at constant rates of exchange, due to regulatory and fiscal challenges impacting combustibles in Australia and Bangladesh, partly offset by higher combustibles revenue in Nigeria, Indonesia and Pakistan. Value and Volume Share Group cigarette value share was flat in 2025 despite growth in the U.S. (up 30 bps), Brazil and Mexico. This was offset by lower cigarette value share in Germany and Romania. Group cigarette volume share was down 10 bps in 2025. The Group grew volume share in Brazil and Mexico. However, this was more than offset by lower volume share in the U.S. (down 10 bps) and reductions in Germany, Romania and Japan. Volume and value share are based upon the Top cigarette markets which are defined as the Top markets by industry revenue, being the U.S., Japan, Brazil, Germany, Pakistan, Mexico and Romania, accounting for c.60% of total industry cigarettes revenue in 2024. Strategic Brand Performance In 2025, strategic cigarette brands’ value share grew 10 bps: –Dunhill’s overall value share was flat despite declines in Brazil and Romania. Volume was 2.7% lower, largely driven by Bulgaria and South Korea and our exit from Mali; –Kent’s value share was down 10 bps as growth in Brazil was more than offset by lower value share in Romania and Japan. Volume was up 1.8%. Kent increased volume in Türkiye and Brazil, which was partly offset by lower volume in Japan and Romania; –Lucky Strike’s value share grew 50 bps, as growth in the U.S. and Brazil more than offset lower value share in Germany and Mexico. Volume declined 2.0% driven by Japan and Germany. This more than offset higher volume in Indonesia; –Rothmans’ value share was flat, as growth in Brazil was offset by lower value share in Romania and Pakistan. Volume was 5.7% lower due to lower volume in Poland, Ukraine, Zambia and Colombia. This more than offset higher volume in Nigeria; and –Pall Mall’s value share was 20 bps lower as growth in Romania, Pakistan and Mexico was more than offset by lower value share in Germany and the U.S. Volume was down 7.7% driven by lower volume in Poland, Nigeria, Pakistan, Germany and the U.S. The Group’s U.S. domestic strategic combustibles portfolio value share was up 40 bps driven by the performance of Lucky Strike and Natural American Spirit: 40 British American Tobacco p.l.c. Form 20-F 2025 –Newport, with value share down 30 bps, and volume 9.9% lower; –Natural American Spirit performed well with value share up 20bps. Volume was 3.7% down; and –Camel, with value share down 10 bps and volume 13.5% down. Volume of other tobacco products (OTP) declined 14.0% to 12 billion sticks equivalent, being 2.3% of the Group's combustible portfolio. Beyond Nicotine Btomorrow Ventures (BTV), the corporate venture capital arm of BAT, has completed 30+ investments since its launch in 2020. BTV provides strategic value to the next generation of innovative companies, to support the Group’s purpose of creating A Better Tomorrow™. In 2025, BTV’s Fund II, an additional £200 million second fund commitment from BAT announced in 2024, was repositioned. Fund II now has a broader mandate, focusing on investments in: –Smokeless nicotine products; –business transformation and capability enablers; –sustainability; and –a continued focus on Wellbeing and Stimulation. In 2025, BTV made five new investments, including Bloom Biorenewables and China Materialia Evergreen Fund. In addition to this, BTV has continued to support its portfolio companies through seven follow-on rounds to the value of £7 million, including investments in Awake, Mais Mu, Moment and Parallel Dots. In November 2023, the Group announced the signing of an agreement for a further proposed investment in Organigram of CAD$125 million (£74 million), payable across three tranches, with approvals received from the shareholders of Organigram on 18 January 2024. In February 2025, we paid the last of the three tranches of the Group’s follow-on investment. The Group’s equity position at 31 December 2025 was 36.8% (restricted to 30% voting rights). The Group has continued to explore Beyond Nicotine organically through our subsidiary, The Water Street Collective Ltd. Following a series of pilot launches of our own functional wellness shot brand, Ryde, we are continuing commercial expansion. Our scientifically formulated range of Energy, Focus and Relax are available in three markets – Australia, Canada and the U.S. Our recent innovations of Sleep and Exercise shots are in selected distribution across the U.S. and Australia. While immaterial to the Group's results, Ryde is not sold in Canada by ITCAN but by another Group subsidiary. Accordingly, the performance does not form part of the future settlement payments due as part of the Approved Plans, described in note 24 in Part III - Item 18 Notes on the Accounts. Dividends The Group pays its dividends to shareholders over four quarterly interim dividends. Quarterly dividends provide shareholders with a more regular flow of dividend income and allow the Company to spread its substantial dividend payments more evenly over the year, aligning better with the cash flow generation of the Group and so enable the Company to fund the payments more efficiently. The Board has declared an interim dividend of 245.04p per ordinary share of 25p, payable in four equal quarterly instalments of 61.26p per ordinary share in May 2026, August 2026, November 2026 and February 2027. This represents an increase of 2.0% on 2024 (2024: 240.24p per share, up 2.0%) and a payout ratio, on 2025 adjusted diluted earnings per share, of 69.6% (2024: 66.3%). The quarterly dividends will be paid to shareholders registered on either the UK main register or the South Africa branch register and to ADS holders, each on the applicable record dates. Under IFRS, the dividend is recognised in the year that it is approved by shareholders or, if declared as an interim dividend, by Directors, in the period that it is paid. The cash flow, prepared in accordance with IFRS, reflects the total cash paid in the period. Further details of the total amounts of dividends paid in 2025 and 2024 (with 2023 comparatives) are given in note 22 in Part III - Item 18 Notes on the Accounts. Dividends are declared and payable in sterling except for those shareholders on the branch register in South Africa, where dividends are payable in rand, in line with the requirements of the JSE. The equivalent dividends receivable by holders of ADSs in US dollars are calculated based on the exchange rate on the applicable payment date. Results for the Year Ended December 31, 2024 Compared to the Year Ended December 31, 2023 The discussion of 2023 results that are not necessary to an understanding of the Group’s financial condition, changes in financial condition and results of operations is excluded from this Operating and Financial Review and Prospects in accordance with applicable U.S. securities laws. Discussion of such 2023 metrics is contained in the Group’s Annual Report on Form 20-F 2024, which is available at bat.com/annualreport and has been filed with the SEC. Information contained in pages 28 to 36, 42 to 59 and pages 395 to 410 of the Annual Report on Form 20-F 2024 are accordingly incorporated by reference into this Form 20-F only to the extent such information pertains to the Group’s financial condition and results of operations for the fiscal year ended 31 December 2023. Impact of Changes in Foreign Exchange Rates The principal currency exchange rates used to convert the results of the Group's foreign operations to sterling, for the purposes of inclusion and consolidation within the Group's financial statements, are indicated in the table below. Where the Group has provided results at constant rates of exchange, this refers to the translation of the results from the foreign operations at rates of exchange prevailing in the prior period, thereby eliminating the potentially distorting impact of the movement in foreign exchange on the reported results. 41 British American Tobacco p.l.c. Form 20-F 2025 Foreign Exchange Rates Average Closing 2025 2024 2025 2024 Australian dollar 2.045 1.937 2.017 2.023 Bangladeshi taka 160.886 147.803 164.432 149.662 Brazilian real 7.363 6.893 7.371 7.737 Canadian dollar 1.842 1.751 1.844 1.801 Chilean peso 1,253.837 1,206.394 1,212.663 1,245.543 Euro 1.167 1.181 1.145 1.209 Indian rupee 114.989 106.952 120.892 107.223 Japanese yen 197.243 193.583 210.830 196.827 Romanian leu 5.885 5.877 5.834 6.018 South African rand 23.562 23.423 22.287 23.633 Swiss franc 1.094 1.125 1.066 1.135 US dollar 1.319 1.278 1.345 1.252 Results on a Constant Translational Currency Basis Movements in foreign exchange rates have impacted the Group’s financial results. The Group’s Management Board reviews certain of its results, including revenue, revenue growth from New Categories, adjusted profit from operations and adjusted diluted earnings per share, at constant rates of exchange. The Group calculates these financial measures at constant rates of exchange based on a re-translation, at prior year exchange rates, of the current year’s results of the Group and, when applicable, its geographic segments. The Group does not adjust for the normal transactional gains and losses in profit from operations that are generated by exchange movements. Although the Group does not believe that these measures are a substitute for IFRS measures, the Group’s Management Board does believe that such results excluding the impact of currency fluctuations provide additional useful information to users of the financial statements and are used by the Group’s Management Board as described above as they provide information regarding the Group’s operating performance on a local currency basis. Accordingly, the constant rates of exchange financial measures appearing in the discussion of the Group results of operations (beginning on page 30) should be read in conjunction with the information provided in note 2 in Part III - Item 18 Notes on the Accounts. In 2025 and 2024, results were affected by translational exchange rate movements. In 2025, at the prevailing exchange rates, reported revenue declined by 1.0%, revenue from New Categories increased by 5.5% and adjusted profit from operations decreased by 2.7% versus 2024. At constant rates of exchange, reported revenue would have increased by 2.1%, revenue from New Categories would have increased by 7.0% and adjusted profit from operations would have increased by 0.4%. This lower performance at prevailing exchange rates reflects the negative translational impact as a result of the relative strength of sterling. In 2025 and 2024, adjusted diluted earnings per share was affected by translational exchange rate movements. In 2025, the adjusted diluted earnings per share of 352.1p, a decrease of 2.9%, would, when translated at 2024 exchange rates, have been 365.0p, an increase of 0.7%. This lower performance, in 2025, at prevailing exchange rates, reflects the negative translational impact as a result of the relative strength of sterling. See also notes 2, 19 and 26 in Part III - Item 18 Notes on the Accounts. Non-GAAP Measures In the reporting of financial information, the Group uses certain measures that are not defined by IFRS, the Generally Accepted Accounting Principles (GAAP) under which the Group reports. The Group believes that these additional measures, which are used internally, are useful to users of the financial information in helping them understand the underlying business performance. The principal non-GAAP measures which the Group uses are adjusted profit from operations, adjusted operating margin, adjusted net finance costs, adjusted taxation, adjusted diluted earnings per share, which are before the impact of adjusting items and are reconciled from profit from operations, operating margin, net finance costs, taxation, diluted earnings per share. The Group also uses adjusted share of post-tax results of associates and joint ventures, and underlying tax rate. Adjusting items are significant items in profit from operations, net finance costs, taxation, the Group’s share of the post-tax results of associates and joint ventures and cash flow which individually or, if of a similar type, in aggregate, are relevant to an understanding of the Group’s underlying financial performance. Adjusting items, as identified in accordance with the Group’s accounting policies, represent certain items of income and expense which the Group considers distinctive based on their size, nature or incidence. In identifying and quantifying adjusting items, the Group applies a consistent policy that sets out the criteria an item must meet to be classified as adjusting, as well at the types of items that are specifically excluded from being classified as adjusting. The definition of adjusting items is explained in note 1 in Part III - Item 18 Notes on the Accounts. The Group also supplements its presentation of revenue in accordance with IFRS by presenting the non-GAAP component breakdowns of revenues by product category (including revenue generated from Vapour, Heated Products, Modern Oral, New Categories as a whole, Traditional Oral, Smokeless products as a whole and combustibles), including by geographic segment (including revenue generated in the United States, Americas and Europe and Asia-Pacific, Middle East and Africa). Revenue, at Constant Rates of Exchange Definition – Revenue before the impact of foreign exchange. To supplement BAT’s revenue presented in accordance with IFRS, the Group’s Management Board, as the chief operating decision-maker, reviews revenue at constant rates of exchange to evaluate the underlying business performance of the Group and its geographic segments. The Group’s Management Board defines this measure as revenue retranslated at the prior periods’ rate of exchange. The Group’s Management Board believes that revenue at constant rates of exchange provides information that enables users of the financial statements to compare the Group’s business performance across periods without the impacts of translational foreign exchange. This measure has limitations as an analytical tool. The most directly comparable IFRS measure to revenue at constant rates of exchange is revenue. Revenue at constant rates of exchange is not a presentation made in accordance with IFRS, and is not a measure of financial condition or liquidity and should not be considered as an alternative to revenue as determined in accordance with IFRS. Revenue at constant rates of exchange is not necessarily comparable to similarly titled measures used by other companies. As a result, you should not consider this performance measure in isolation from, or as a substitute analysis for, BAT’s results as determined in accordance with IFRS. The table below reconciles revenue to revenue at constant rates based on a re-translation of revenue for each year, at the previous year’s exchange rates. 42 British American Tobacco p.l.c. Form 20-F 2025 Refer to note 2 in Part III - Item 18 Notes on the Accounts for further discussion of the segmental results and for the reconciliation of revenue at current and constant rates of exchange, as applicable, to segmental revenue and to Group revenue for the years ended 31 December 2025, 2024 and 2023. For the year ended 31 December 2025 2024 £m £m Revenue 25,610 25,867 Impact of translational foreign exchange 804 2025 revenue re-translated at 2024 exchange rates 26,414 25,867 Change in revenue at prior year’s exchange rates (constant rates) 2.1% Revenue by Product Category or Geographic Segment – Including Revenue from New Categories, at Constant Rates of Exchange Definition – Revenue by product category, and at the prior year’s prevailing exchange rate, derived from the principal product categories of Combustibles, New Categories (being comprised of revenue from Vapour, HP and Modern Oral), and Traditional Oral, including by the geographic segments of the United States, Americas and Europe, and Asia-Pacific, Middle East and Africa. To supplement BAT’s revenue presented in accordance with IFRS, the Group’s Management Board, as the chief operating decision-maker, reviews revenue growth from the principal product categories of combustibles, New Categories and Traditional Oral, including from the geographic segments of the United States, Americas and Europe, and Asia-Pacific, Middle East and Africa, to evaluate the underlying business performance of the Group reflecting the focus of the Group’s investment activity. The Group’s Management Board assesses revenue by product category, including by geographic segment, at constant rates of exchange, translated to the Group’s reporting currency at the prior period’s prevailing exchange rates, derived from the Group’s combustibles portfolio (including but not limited to Kent, Dunhill, Lucky Strike, Pall Mall, Rothmans, Camel (U.S.), Newport (U.S.) and Natural American Spirit (U.S.)), the Group’s New Category portfolio (being Vapour, HP and Modern Oral) and the Group’s Traditional Oral portfolio and the Group’s operations in the United States, Americas and Europe, and Asia-Pacific, Middle East and Africa. The Group’s Management Board believes that the revenue performance by product category, including by geographic segment, provides information that enables users of the financial statements to compare the Group’s business performance across periods and by reference to the Group’s investment activity. Revenue by product category, including by geographic segment, has limitations as an analytical tool. The most directly comparable IFRS measure to revenue by product category, including by geographic segment, is revenue. Revenue by product category, including by geographic segment, is not a presentation made in accordance with IFRS, is not a measure of financial condition or liquidity and should not be considered as an alternative to revenue as determined in accordance with IFRS. Revenue by product category, including by geographic segment, is not necessarily comparable to similarly titled measures used by other companies. As a result, you should not consider this performance measure in isolation from, or as a substitute analysis for, BAT’s results as determined in accordance with IFRS. The table below reconciles revenue by product category to revenue by product category at constant rates based on a re-translation of revenue by product category for each year, at the previous year’s exchange rates. Reconciliation of revenue by product category to revenue by product category at constant rates of exchange (2025 - 2024) For the year ended 31 December 2025 2024 Group Reported £m vs 2024 % Impact of exchange £m Reported at cc£m Reported at cc vs 2024 % Reported £m New Categories: Vapour 1,542 -10.4% 31 1,573 -8.6% 1,721 HP 914 -0.7% 16 930 +1.0% 921 Modern Oral 1,165 +47.4% 5 1,170 +48.0% 790 Total New Categories 3,621 +5.5% 52 3,673 +7.0% 3,432 Traditional Oral 1,043 -4.5% 30 1,073 -1.7% 1,092 Combustibles 20,201 -2.3% 686 20,887 +1.0% 20,685 Other 745 +13.2% 36 781 +18.7% 658 Revenue 25,610 -1.0% 804 26,414 +2.1% 25,867 Reconciliation of revenue by product category to revenue by product category at constant rates of exchange For the year ended 31 December 2025 2024 U.S. Reported£m vs 2024% Impact of exchange £m Reported at cc£m Reported at cc vs 2024 % Reported £m New Categories: Vapour 934 -6.4% 29 963 -3.4% 998 HP — — — — — — Modern Oral 317 +297% 10 327 +310% 80 Total New Categories 1,251 +16.1% 39 1,290 +19.8% 1,078 Traditional Oral 1,006 -5.0% 31 1,037 -2.0% 1,058 Combustibles 9,218 +1.4% 295 9,513 +4.6% 9,094 Other 59 +23.2% 4 63 +27.5% 48 Revenue 11,534 +2.3% 369 11,903 +5.5% 11,278 43 British American Tobacco p.l.c. Form 20-F 2025 For the year ended 31 December 2025 2024 AME Reported £m vs 2024 % Impact of exchange £m Reported at cc£m Reported at cc vs 2024 % Reported £m New Categories: Vapour 543 -11.2% (1) 542 -11.4% 611 HP 470 +6.2% 1 471 +6.2% 443 Modern Oral 800 +18.3% (6) 794 +17.3% 676 Total New Categories 1,813 +4.8% (6) 1,807 +4.3% 1,730 Traditional Oral 37 +9.9% (1) 36 +5.1% 34 Combustibles 6,974 -0.9% 226 7,200 +2.3% 7,039 Other 485 +10.8% 20 505 +15.7% 438 Revenue 9,309 +0.7% 239 9,548 +3.3% 9,241 For the year ended 31 December 2025 2024 APMEA Reported £m vs 2024 % Impact of exchange £m Reported at cc£m Reported at cc vs 2024 % Reported £m New Categories: Vapour 65 -41.2% 3 68 -39.4% 112 HP 444 -7.0% 15 459 -3.8% 478 Modern Oral 48 +39.8% 1 49 +44.2% 34 Total New Categories 557 -10.6% 19 576 -7.6% 624 Traditional Oral — — — — — — Combustibles 4,009 -11.9% 165 4,174 -8.3% 4,552 Other 201 +16.3% 12 213 +23.7% 172 Revenue 4,767 -10.9% 196 4,963 -7.2% 5,348 Note: cc: constant currency – measures are calculated based on a re-translation of the current year’s results of the Group at the prior year’s exchange rates and, where applicable, its geographical segments or product categories. Adjusted Profit From Operations (APFO) and Adjusted Operating Margin Definition – Profit from operations before the impact of adjusting items and translational foreign exchange; and adjusted profit from operations as a percentage of revenue. To supplement BAT’s results from operations presented in accordance with IFRS, the Group’s Management Board, as the chief operating decision‑maker, reviews adjusted profit from operations and adjusted operating margin, which is defined as APFO as a percentage of revenue, to evaluate the underlying business performance of the Group and its geographic segments, to allocate resources to the overall business and to communicate financial performance to users of the financial statements. APFO and adjusted operating margin are not measures defined by IFRS. The most directly comparable IFRS measure to APFO is profit from operations. The most directly comparable IFRS measure to adjusted operating margin is operating margin which is profit from operations as a proportion of revenue. The definition of adjusting items is explained in note 1 in Part III - Item 18 Notes on the Accounts. The Group’s Management Board believes that these additional measures are useful to the users of the financial statements and are used by the Group’s Management Board as described above, because they exclude the impact of adjusting items which have less bearing on the routine ongoing operating activities of the Group, thereby enhancing users’ understanding of underlying business performance and enabling users of the financial statements to compare the Group’s business performance across periods. Additionally, the Group’s Management Board believes that similar measures are frequently used by securities analysts, investors and other interested parties in their evaluation of companies comparable to the Group, many of which present an adjusted operating profit-related performance measure when reporting their results. APFO and adjusted operating margin have limitations as analytical tools. They are not presentations made in accordance with IFRS, are not measures of financial condition or liquidity and should not be considered as alternatives to profit for the year, profit from operations or operating margin as determined in accordance with IFRS. These measures are not necessarily comparable to similarly titled measures used by other companies. As a result, you should not consider these performance measures in isolation from, or as a substitute analysis for, BAT’s results of operations as determined in accordance with IFRS. The table below reconciles the Group’s profit from operations to APFO and to APFO at constant rates based on a re-translation of APFO for each year, at the previous year’s exchange rates, and provides adjusted operating margin for the periods presented. Refer to note 2 in Part III - Item 18 Notes on the Accounts for further discussion of the segmental results and for the reconciliation of adjusted profit from operations at current and constant rates of exchange to segmental profit from operations and to Group profit for the years ended 31 December 2025, 2024 and 2023. 44 British American Tobacco p.l.c. Form 20-F 2025 For the year ended 31 December 2025 2024 £m £m Profit from operations 9,997 2,736 Add: Restructuring 66 — Amortisation and impairment of trademarks and similar intangibles 1,584 2,279 (Credit)/charges in respect of Romania's other taxes (15) 449 (Credit)/charges in respect of the Canada Approved Plans (708) 6,203 Impairment charges in respect of Cuba's fixed assets — 74 Impairment charges relating to the Group's head office in London — 75 Impairment of goodwill 277 39 Charges in connection with disposal of associate 3 6 Pension liability management (buy-out) 28 — Impairment on held-for-sale assets and associated costs 235 — Charges in respect of DOJ investigation and OFAC investigation — 4 Credit in respect of settlement of historical litigation in relation to the Fox River — (132) Loss of a distribution facility in Ukraine 39 — Other adjusting items (including Engle) 66 157 Adjusted profit from operations 11,572 11,890 Impact of translational foreign exchange 364 Adjusted profit from operations, translated at 2024 exchange rates 11,936 11,890 Change in adjusted profit from operations, translated at 2024 exchange rates +0.4% Operating Margin (Profit from operations as a % of revenue) 39.0% 10.6% Adjusted Operating Margin (Adjusted profit from operations as a % of revenue) 45.2% 46.0% Adjusted Net Finance Costs at Constant Rates of Exchange Definition – Net finance costs before the impact of adjusting items, and translational foreign exchange. To supplement BAT’s performance presented in accordance with IFRS, the Group’s net finance costs are also presented before adjusting items (as defined in note 1 and described in note 8(b) in Part III - Item 18 Notes on the Accounts) and before the impact of translational foreign exchange. The Group’s Management Board believes that adjusted net finance costs provides information that enables users of the financial statements to compare the Group’s business performance across periods. The Group’s Management Board uses adjusted net finance costs as part of the total assessment of the underlying performance of all the Group’s business interests. Adjusted net finance costs has limitations as an analytical tool. It is not a presentation made in accordance with IFRS, is not a measure of financial condition or liquidity and should not be considered as an alternative to the Group’s net finance costs as determined in accordance with IFRS. The most directly comparable IFRS measure to adjusted net finance costs is net finance costs. Adjusted net finance costs is not necessarily comparable to similarly titled measures used by other companies. As a result, you should not consider this performance measure in isolation from, or as a substitute analysis for, BAT’s results of operations as determined in accordance with IFRS. Adjusted net finance costs is also included in the calculation of Group’s presentation of adjusted diluted earnings per share, which is used within the Group's incentive schemes, as reported under Item 6.B - Compensation. The table below reconciles the Group’s net finance costs to adjusted net finance costs, and to adjusted net finance costs at constant rates based, on a re- translation of adjusted net finance costs for each year, at the previous year’s exchange rates. For the year ended 31 December 2025 2024 £m £m Finance costs (2,033) (1,349) Finance income 214 251 Net finance costs (1,819) (1,098) Less: Adjusting items in net finance costs 170 (491) Adjusted net finance costs (1,649) (1,589) Comprising: Interest payable (1,715) (1,759) Interest and dividend income 214 251 Fair value changes – derivatives (521) (90) Exchange differences 373 9 Adjusted net finance costs (1,649) (1,589) Impact of translational foreign exchange (27) Adjusted net finance costs, translated at 2024 exchange rates (1,676) (1,589) 45 British American Tobacco p.l.c. Form 20-F 2025 Adjusted Share of Post-Tax Results of Associates and Joint Ventures, at Constant Rates of Exchange Definition – Share of post-tax results of associates and joint ventures before the impact of adjusting items and translational foreign exchange. To supplement BAT’s performance presented in accordance with IFRS, the Group’s share of post-tax results of associates and joint ventures is also presented before adjusting items (as defined in note 1 in Part III - Item 18 Notes on the Accounts). The Group’s Management Board believes that adjusted share of post-tax results of associates and joint ventures provides information that enables users of the financial statements to compare the Group’s business performance across periods. The Group’s Management Board uses adjusted share of post-tax results from associates and joint ventures as part of the total assessment of the underlying performance of all the Group’s business interests. Adjusted share of post-tax results of associates and joint ventures has limitations as an analytical tool. It is not a presentation made in accordance with IFRS, is not a measure of financial condition or liquidity, and should not be considered as an alternative to the Group’s share of post-tax results of associates and joint ventures as determined in accordance with IFRS. The most directly comparable IFRS measure to adjusted share of post-tax results of associates and joint ventures is share of post-tax results of associates and joint ventures. Adjusted share of post-tax results of associates and joint ventures is not necessarily comparable to similarly titled measures used by other companies. As a result, you should not consider this performance measure in isolation from, or as a substitute analysis for, BAT’s results of operations as determined in accordance with IFRS. The definition of adjusting items is explained in note 1 in Part III - Item 18 Notes on the Accounts. The table below reconciles the Group’s share of post-tax results of associates and joint ventures to adjusted Group’s share of post-tax results of associates and joint ventures, and to adjusted Group’s share of post-tax results of associates and joint ventures at constant rates based on a re-translation of adjusted Group’s share of post-tax results of associates and joint ventures for each year, at the previous year’s exchange rates. For the year ended 31 December 2025 2024 £m £m Group’s share of post-tax results of associates and joint ventures 1,681 1,900 Issue of shares and changes in shareholding (5) (18) Other exceptional items in ITC (333) — Gain on partial divestment of shares held in ITC (898) (1,361) Gain on sale of land and property by VST industries Limited (3) — Adjusted Group’s share of post-tax results of associates and joint ventures 442 521 Impact of translational foreign exchange 33 Adjusted Group’s share of post-tax results of associates and joint ventures, translated at 2024 exchange rates 475 521 Adjusted Taxation at Constant Rates of Exchange Definition – Taxation before the impact of adjusting items and translational foreign exchange. BAT management monitors the Group’s adjusted taxation to assess BAT’s underlying tax. The definition of adjusting items is explained in note 1 in Part III - Item 18 Notes on the Accounts. Adjusted taxation is not a measure defined by IFRS. The Group’s Management Board believes that this additional measure is useful to the users of the financial statements, and is used by BAT management, because it excludes the tax on adjusting items and adjusting tax (as described in notes 10(d) and 10(e), respectively, in Part III - Item 18 Notes on the Accounts), thereby enhancing users’ understanding of underlying business performance. Adjusted taxation has limitations as an analytical tool. It is not a presentation made in accordance with IFRS and should not be considered as an alternative to taxation as determined in accordance with IFRS. The most directly comparable IFRS measure to adjusted taxation is taxation. Adjusted taxation is not necessarily comparable to similarly titled measures used by other companies. As a result, you should not consider this measure in isolation from, or as a substitute analysis for, the Group’s taxation as determined in accordance with IFRS. The table below reconciles taxation to adjusted taxation and adjusted taxation at constant rates, based on a re-translation of adjusted taxation for each year, at the previous year’s exchange rates. For the year ended 31 December 2025 2024 £m £m UK corporation tax – current year tax expense 15 15 – adjustments in respect of prior periods 2 9 Overseas tax – current year tax expense 2,355 2,571 – adjustments in respect of prior periods (296) 108 Current tax 2,076 2,703 Pillar Two income tax 82 79 Total current tax 2,158 2,782 Deferred tax (64) (2,425) Taxation on ordinary activities 2,094 357 Adjusting items in taxation 104 157 Taxation on adjusting items 240 2,049 Adjusted taxation (2,438) (2,563) Impact of translational foreign exchange (84) Adjusted taxation, translated at 2024 exchange rates (2,522) (2,563) 46 British American Tobacco p.l.c. Form 20-F 2025 Underlying Tax Rate and Underlying Tax Rate at Constant Rates of Exchange Definition – Tax rate incurred before the impact of adjusting items and translational foreign exchange and to adjust for the inclusion of the Group’s share of post-tax results of associates and joint ventures within the Group’s pre-tax results. BAT management monitors the Group’s underlying tax rate to assess the tax rate applicable to the Group’s underlying operations, excluding the Group’s share of post-tax results of associates and joint ventures in BAT’s pre-tax results and adjusting items (as defined in note 1 in Part III - Item 18 Notes on the Accounts). Underlying tax rate is not a measure defined by IFRS. The Group’s Management Board believes that this additional measure is useful to the users of the financial statements, and is used by BAT management, because it excludes the contribution from the Group’s associates, recognised after tax but within the Group’s pre-tax profits, and adjusting items, thereby enhancing users’ understanding of underlying business performance. Underlying tax rate has limitations as an analytical tool. It is not a presentation made in accordance with IFRS and should not be considered as an alternative to the effective tax rate as determined in accordance with IFRS. The most directly comparable IFRS measure to underlying tax rate is the effective tax rate, calculated as taxation as a proportion of profit before taxation. Underlying tax rate is not necessarily comparable to similarly titled measures used by other companies. As a result, you should not consider this measure in isolation from, or as a substitute analysis for, the Group’s effective tax rate as determined in accordance with IFRS. The table below shows the computation of the Group’s underlying tax rate for the periods presented and underlying tax rate at constant rates based on a re- translation of underlying tax rate for each year, at the previous year’s exchange rates and the related reconciliation of profit before taxation to adjusted profit before taxation, excluding associates and joint ventures, and taxation on ordinary activities to adjusted taxation and adjusted taxation at constant rates of exchange. For the year ended 31 December 2025 2024 £m £m Profit before taxation (PBT) 9,859 3,538 Less: Share of post-tax results of associates and joint ventures (1,681) (1,900) Adjusting items within profit from operations 1,575 9,154 Adjusting items within finance costs 170 (491) Adjusted profit before taxation, excluding associates and joint ventures 9,923 10,301 Impact of translational foreign exchange 337 Adjusted PBT, excluding associates and joint ventures, translated at 2024 exchange rates 10,260 10,301 Taxation on ordinary activities (2,094) (357) Adjusting items within taxation and taxation on adjusting items (344) (2,206) Adjusted taxation (2,438) (2,563) Impact of translational foreign exchange on adjusted taxation (84) Adjusted taxation, translated at 2024 exchange rates (2,522) (2,563) Effective tax rate 21.2% 10.1% Underlying tax rate 24.6% 24.9% Underlying tax rate (at 2024 exchange rates) 24.6% 24.7% Adjusted Diluted Earnings Per Share (EPS), presented at both current and constant rates of exchange Definition – Diluted earnings per share before the impact of adjusting items and after adjustments to the number of shares outstanding for the impact of share option schemes whether they would be dilutive or not under statutory measures, presented at the current and the prior years’ rates of exchange. BAT management monitors adjusted diluted EPS, a measure which removes the impact of adjusting items (as defined in note 1 in Part III - Item 18 Notes on the Accounts) from diluted earnings per share. Adjusted diluted EPS is considered by the Group’s Management Board to be useful to the users of the financial statements and is used by the Group’s Management Board, because it excludes the impact of adjusting items which have less bearing on the routine ongoing operating activities of the Group, thereby enhancing users’ understanding of underlying business performance. The Group’s Management Board also believes that adjusted diluted EPS provides information that enables users of the financial statements to compare the Group’s business performance across periods. Additionally, the Group’s Management Board believes that similar measures are frequently used by securities analysts, investors and other interested parties in their evaluation of companies comparable to the Group, many of which present an adjusted diluted EPS-related performance measure when reporting their result. Adjusted diluted EPS is used by management as reported in note 11 in Part III - Item 18 Notes on the Accounts, as an indicator of diluted EPS before adjusting items. Adjusted diluted EPS is not necessarily comparable to similarly titled measures used by other companies. Adjusted diluted EPS has limitations as an analytical tool. It is not a presentation made in accordance with IFRS and should not be considered as an alternative to diluted EPS as determined in accordance with IFRS. The most directly comparable IFRS measure to adjusted diluted EPS is diluted EPS. The management also assesses adjusted diluted earnings per share (at current and constant rates) within the Group's incentive schemes, as reported under