Asia PR News

LONDON, Feb. 28 /PRNewswire-AsiaNet/ –

SUMMARY

2005 2004 Change

Profit from operations
- as reported 2,420m pounds 3,760m pounds -36%
- ‘like for like’ 2,607m pounds 2,398m pounds +9%
Adjusted diluted
earnings per share 89.34p 76.62p +17%
Dividends per share
declared 47.00p 41.90p +12%

— The reported Group profit from operations was 36 per cent lower at
2,420 million pounds Sterling, mainly due to the impact in 2004 of a
significant 1,389 million pounds gain on the Reynolds American
transaction. However, profit from operations would have been 9 per
cent higher, or 5 per cent at comparable rates of exchange, if
exceptional items and the changes in the Group resulting from the
merger of the Group’s US businesses with R.J. Reynolds and the sale of
Etinera, with the resulting change in terms of trade, are excluded.
This ‘like for like’ information provides a better understanding of the
subsidiaries’ trading results than the ‘headline’ change in profit from
operations.

— On a reported basis, Group volumes from subsidiaries were affected by
the changes in the Group noted above, resulting in a 1 per cent
decrease to 678 billion. Excluding the impact of these transactions,
there was good organic volume growth from subsidiaries of 2 per cent.
The four global drive brands performed well with an overall growth of 9
per cent on a ‘like for like’ basis.

— Adjusted diluted earnings per share rose by 17 per cent, benefiting
from the improved underlying operating performance and reduced net
finance costs, as well as the impact of the Reynolds American
transaction and the share buy-back programme. The basic earnings per
share was lower at 84.53p (2004: 133.43p).

— The Board is recommending a final dividend of 33.0p, which will be paid
on 4 May 2006. This, together with the interim dividend, will take
dividends declared in respect of 2005 as a whole to 47.0p, an increase
of 12 per cent.

— The Chairman, Jan du Plessis, commented: "The outstanding results for
2005 demonstrate that British American Tobacco’s strategy is working
well and I am confident that we can continue to deliver quality
earnings growth and good cash flow over the long term."

SOURCE: British American Tobacco

CONTACT: INVESTOR RELATIONS:
Ralph Edmondson,
+44-20-7845-1180 or
Rachael Cummins,
+44-20-7845-1519,

PRESS OFFICE:
David Betteridge,
Teresa La Thangue, or
Emily Brand,
+44-20-7845-2888,
all of British American Tobacco