British American Tobacco Malaysia Berhad : Press Release (110 kb)

MEDIA RELEASE

FOR IMMEDIATE DISSEMINATION

BAT MALAYSIA CLOSES 2021 FINANCIAL YEAR

ON A STRONG NOTE

Kuala Lumpur, 8 February 2022 - British American Tobacco (Malaysia) Berhad (BAT Malaysia) today announced its financial results for the fourth quarter ended 31 December 2021 (Q4FY2021).

Q4FY2021 Financial Highlights:

• Profit from operations for the quarter stood at RM110 million compared to RM108 million in the preceding quarter.
• Revenue for the quarter continued to grow for the fourth consecutive quarter and stood at RM862 million, a 41% increase versus the preceding quarter.
• The board of directors has declared a fourth interim ordinary dividend of 27.0 sen per share, amounting to RM77 million to be paid out on 4 March 2022 to shareholders.

BAT Malaysia performed remarkably in 2021 with the volume growing for the first time since 2002, profit growing for the first time since 2015 and strong quarter on quarter improvement in our financial performance. The growth momentum comes from an increase in volume and share of market which, in turn, improved revenue and profit from operations.

The volume increase was mainly due to the reduction in the tobacco black market by 6.1% compared to FY2020. This growth in volume led to a revenue of RM2.6 billion for FY2021 compared to RM2.3 billion in FY2020 (growth of 14%) and a profit from operations of RM411 million compared to RM346 million in FY2020 (increase of 19%).

Consistent with the volume growth trajectory, BAT Malaysia's total market share stood at 52.4%, registering an increase of 0.8ppt. This encouraging share performance was driven by the strength of the company's strategic brands, namely Dunhill, Rothmans and KYO. BAT Malaysia's portfolio grew in all segments with Dunhill growing by 1.9ppt in the Premium segment, Peter Stuyvesant and Pall Mall by 0.7ppt in the Aspirational Premium segment and Rothmans and KYO by 1.5ppt in the value-for-money (VFM) segment.

"Moving forward, we are optimistic of the company's prospects, barring any unforeseen circumstances, as we continue working towards our purpose of building A Better TomorrowTM by reducing the health impact of our business," said Nedal Salem, Managing Director, BAT Malaysia.

"We are encouraged by the Malaysian Government's moves towards legalising nicotine vapour products. We are hopeful that the government introduces a science-backed framework as is seen in the United Kingdom, Canada and New Zealand.

At the same time, we ask the government to be vigilant in the face of a tobacco black market that commands almost 60% of the total market and causes Malaysia to lose RM5 billion annually in

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uncollected taxes. We know that over-regulation has created this crisis, so we urge caution in this regard," Nedal added.

ENDS

For more information on British American Tobacco Malaysia's financial results, please visit www.batmalaysia.com

About British American Tobacco (Malaysia) Berhad

British American Tobacco (Malaysia) Berhad is the leading tobacco company in Malaysia. This strong position is built upon a portfolio of products designed to meet diverse consumer preferences. Our portfolio includes world- famous brands like DUNHILL, KENT, PETER STUYVESANT, PALL MALL, ROTHMANS and KYO. At the core of BAT Malaysia is its purpose to build A Better TomorrowTM by reducing the health impact of its business. BAT Malaysia employs more than 300 employees who are involved in a wide spectrum of disciplines, from generating insights, developing brands and making these available on a national level. In addition, we also set leading edge talent development practices as well as ensure a strong foundation of corporate governance and shareholder relations. The company is part of the British American Tobacco group, which is a leading multi-category consumer goods business and the second largest stock market listed tobacco group by global market share.

For more information, please contact British American Tobacco (Malaysia) Berhad:

Rohan Gnanaganesan, Head of Legal and Corporate Affairs at rohan_gnanaganesan@bat.comor Chin Tuck Weng

attuck_weng_chin@bat.com

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