British American Tobacco to acquire TDR British American Tobacco p.l.c. Incorporated in England and Wales (Registration number: 03407696) Short name: BATS Share code: BTI ISIN number: GB0002875804 ("British American Tobacco p.l.c." or "the Company") British American Tobacco to acquire TDR British American Tobacco to expand its business in Central Europe British American Tobacco (“BAT”) has signed an agreement to acquire TDR d.o.o. and other tobacco and retail assets (“TDR”) from Adris Grupa d.d. (“Adris”) for a total enterprise value of €550 million. TDR is the leading independent cigarette manufacturer in Central Europe with a market leading position in Croatia and a position of scale in Bosnia and Serbia which will provide BAT with the opportunity to significantly grow its business in the region. By combining its existing business in the region together with TDR, BAT expects to benefit from highly skilled people, well established brands, enhanced regional leaf processing capabilities, a local high quality factory and print facility and strong relationships with distributors and retailers in these markets. As part of the transaction BAT has committed to keeping TDR’s manufacturing facility in Kanfanar, Croatia operational for at least five years following completion of the acquisition. The transaction represents a multiple of approximately 12.5 times (based on TDR’s financial year ending 31 December 2014 EBITDA of approximately €44 million). Nicandro Durante, BAT’s Chief Executive, commented: “This is an exciting acquisition for BAT, which will provide immediate scale in three core markets of Croatia, Bosnia and Serbia and establishes a sustainable platform to grow our business in Central Europe”. The proposed acquisition is subject to a number of anti-trust approvals and Adris shareholder consent. The transaction is expected to complete in October 2015. ENQUIRIES Press Office Investor Relations Will Hill / Anna Vickerstaff Mike Nightingale / Rachael Brierley +44 (0)207 845 2888 (24 hours) +44 (0)207 845 1180 / 1519 1 June 2015 Sponsor: UBS South Africa (Pty) Ltd Date: 01/06/2015 09:01:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.