Exhibit 12.1
BRITISH AMERICAN TOBACCO P.L.C.
COMPUTATION OF HISTORICAL AND PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES
(Pounds in Millions)
(Unaudited)
| in £ millions (unaudited) | Pro Forma For the Year Ended December 31, 2016 | For the Years Ended December 31, | ||||||||||
| 2016 | 2015 | |||||||||||
Earnings before fixed charges: | ||||||||||||
Profit before taxation | 11,122 | 6,245 | 5,855 | |||||||||
Excess/(shortfall) of dividends over earnings of affiliates accounted for by the equity method | (1,242 | ) | (1,242 | ) | (643 | ) | ||||||
Add: Fixed charges (below) | 1,613 | 604 | 608 | |||||||||
Subtract: Profit for the year attributable to non-controlling interests | (191 | ) | (191 | ) | (232 | ) | ||||||
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Total earnings before fixed charges | 11,302 | 5,416 | 5,588 | |||||||||
Fixed charges: | ||||||||||||
Finance costs, excluding loss on bond redemption(1) | 1,583 | 580 | 584 | |||||||||
Estimated interest portion of rental expense(2) | 30 | 24 | 24 | |||||||||
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Total fixed charges | 1,613 | 604 | 608 | |||||||||
Ratio of earnings to fixed charges(3) | 7.0 | 9.0 | 9.2 | |||||||||
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| (1) | Finance costs, excluding loss on bond redemption, include interest on borrowings, amortization of debt discount and expenses, fair value changes on derivative instruments and hedged items, and exchange differences on financial liabilities. |
| (2) | One-third of rent expense is the portion deemed representative of the interest factor. |
| (3) | Based on rounded thousands. |
