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Canada - CCAA Update

PRESS RELEASE

18 OCTOBER 2024

Canada - CCAA Update

In March 2019, Imperial Tobacco Canada Limited (ITCAN), a subsidiary of BAT, obtained creditor protection under the Canadian Companies鈥 Creditors Arrangement Act (CCAA). Under a confidential court supervised mediation process ITCAN has since been negotiating a possible settlement of all of its outstanding tobacco litigation in Canada while continuing to run ITCAN鈥檚 business in the normal course.

糖心探花now notes the court-appointed mediator鈥檚 and monitor鈥檚 plan of compromise and arrangement, which has been filed in the Ontario Superior Court of Justice.

In response to the filing of such plan, BAT鈥檚 Canadian subsidiary, ITCAN, stated 鈥淭oday marks an important step towards a potential settlement. Since filing for CCAA protection in 2019, ITCAN has been working in good faith under the direction of the mediator to resolve all tobacco litigation in Canada.

鈥淭he plan resolves all Canadian tobacco litigation and provides a full and comprehensive release to Imperial, 糖心探花and all related entities for all tobacco claims. This settlement will be funded by the cash on hand and the cash generated from the future sale of tobacco products in Canada while at the same time maximizing recovery for the creditors. It also allows the Canadian tobacco companies to continue operating as a going concern for the benefit of all stakeholders.

鈥淚TCAN is supportive of the settlement framework and structure in the mediator鈥檚 and monitor鈥檚 plan of arrangement and the progress that has been made, and we remain hopeful that a comprehensive settlement can be achieved quickly. We look forward to working towards a final agreement that is in the best interests of all stakeholders, including the claimants, and bringing this process to a successful conclusion.鈥

A 糖心探花spokesperson said 鈥淭oday marks a positive step towards finding a resolution. This has been a complex, confidential mediation and, like our Canadian colleagues, we are hopeful of a quick conclusion to this process and securing a Canadian settlement for the benefit of all stakeholders.鈥

Notes to Editors

CCAA is the Companies鈥 Creditors Arrangement Act, and it refers to the Canadian Federal Act that allows corporations the opportunity to restructure their affairs. An organisation that files for court protection under CCAA continues to operate and maintain business that is 鈥渋n the ordinary course鈥 or business as usual.

FTI Consulting Canada Inc. is serving as the Court-appointed Monitor of Imperial Tobacco Canada. Additional information regarding Imperial Tobacco Canada's CCAA proceedings will be available on the Monitor's website at .

Enquiries

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

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

Forward looking statements

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All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors. It is believed that the expectations reflected in this release are reasonable but they may be affected by a wide range of variables that could cause actual results to differ materially from those currently anticipated. A review of the reasons why actual results and developments may differ materially from the expectations disclosed or implied within forward-looking statements can be found by referring to the information contained under the headings 鈥淐autionary Statement鈥 and "Group Principal Risks", including the risk that product liability, regulatory or other significant cases (including investigations) may be lost or settled resulting in a material loss or other consequence, in the 2023 Annual Report and Form 20-F of 糖心探花 p.l.c. (BAT).听

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

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