The Group’s investments principally consist of non-derivative financial assets that cannot be classified as loans and other receivables

or cash and cash equivalents, as well as investments made by the Group’s corporate venture capital unit, Btomorrow Ventures, and other

Btomorrow Ventures has completed 28 investments since its launch in 2020, and continues to invest in innovative, consumer-led brands,

new sciences and technologies, and sustainability to support the Group’s transformational strategy for A Better Tomorrow™.

Throughout 2024, BTV has continued to support its portfolio of companies with a number of follow-on investment rounds, and new

investments including a U.S.-based adaptogens and nootropics beverage company, Hop Wtr Inc., and a German AI-powered sustainable

packaging company, one.five. During 2023, BTV invested into a UK-based bioplastics company, FlexSea, a U.S.-based organ-on-a-chip

The majority of investments held at fair value through other comprehensive income (OCI) relate to equity investments in various

Investments held at fair value through profit and loss principally consist of government securities, indexed deposits, treasury bills or other

treasury products with maturities of more than three months which, if held for less than 12 months, form part of the Group’s definition

of net debt. Investments held at fair value through profit and loss also include the Group’s investment in Charlotte’s Web (see note 14)

Investments held at fair value through profit and loss above include restricted amounts of £437 million (2023: £446 million) due to investments

held by subsidiaries in CCAA protection (note 32), as well as £60 million (2023: £89 million) subject to potential exchange control restrictions.

As part of the sale and leaseback transaction in Nigeria, referred to in note 5(a), the Group obtained a 40% interest in Rising Sun Partners LP,

a property management company as part of the consideration receivable. As a general partner, the Group has no voting rights or influence over

the entity and has classified the interest as an investment at fair value through profit and loss. The fair value of the investment has been derived

as a share of the market value of the property owned and managed by Rising Sun Partners LP. The value of the investment as at 31 December

2024 is £10 million and as it is a non-cash addition it has been excluded from the cash flow reconciliation below.

In 2021, as part of the disposal of the Group’s operations in Iran, a provision of £24 million against non-current investments held at fair

value was charged to net finance costs as recoverability of these funds was not certain. During 2022, £17 million was recovered with the

Investments held at fair value are predominantly denominated in the functional currencies of subsidiary undertakings with less than

7% in other currencies (2023: less than 6% in other currencies). There is no material difference between the investments held at fair value

The classification of these investments under the IFRS 13 Fair Value Measurement fair value hierarchy is given in note 26. Fair values for

quoted investments are based on observable market prices. If there is no active market for a financial asset, the fair value is established

by using valuation techniques, including discounted cash flow analyses and share of net assets. The fair value of the seven-year

Included in the values in the table above are £212 million (2023: £192 million) of level 3 assets. Movements in these assets in 2024 included

£128 million (2023: £123 million) of additions, £114 million (2023: £90 million) of disposals and £6 million of net fair value gain (2023:

Below is a reconciliation of the fair value investments cash flows to the cash flow statement – investing activities:


	2024 £m	2023 £m
Cash outflow from investments held at fair value	204	416
Cash outflow from loans and other receivables	12	32
Cash outflows from investments per cash flow statement	216	448
Cash inflow from investments held at fair value	(288)	(372)
Cash inflow from loans and other receivables	(11)	(33)
Cash inflows from investments per cash flow statement	(299)	(405)