British American Tobacco P.l.c. · LSE:BATS
British American Tobacco P.l.c — CAGNY Conference 2026
46 slides from British American Tobacco P.l.c's conference presentation, 2026
Slide 1: Transforming & Winning
Transforming & Winning CAGNY Conference 2026 Tadeu Marroco – Chief Executive | David Waterfield – President, Reynolds American
Slide 2: Important Information
Important Information The information contained in this presentation in relation to British American Tobacco p.l.c. (“BAT”) and its subsidiaries has been prepared solely for use at this presentation. The presentation is not directed to, or intended for distribution to or use by, any person or entity
Slide 3: Important Information
Important Information Additional Information All financial statements and financial information provided by or with respect to the U.S. or Reynolds American Inc. (“Reynolds”) are initially prepared on the basis of U.S. GAAP and constitute the primary financial statements or financial records of the
Slide 4: BAT is transforming and winning
BAT is transforming and winning • Growing nicotine industry value driven by New Categories • Uniquely positioned to win A Better Tomorrow • Global multi-category portfolio Building a • World-class capabilities Switch Smokeless to Better World • Leading* global New Category brands: Velo #1, Vuse #1,
Slide 5: Growing global nicotine industry value driven by New Categories
Growing global nicotine industry value driven by New Categories Nicotine industry revenue New Category industry revenue £bn £bn 4% 13% CAGR CAGR CAGR CAGR 32 2025-30E 100 2025-30E 81 71 32 13% 11 23% 17 17 11 4 7 10% 11 68 1 4 60 63 1.5% 4 14 8% 9 6 2022 2025 2030E 2022 2025 2030E Combustibles New C
Slide 6: As adult smokers switch to lower-risk products
As adult smokers switch to lower-risk* products Total nicotine consumers New Categories consumers Unlocking consumer moments Mn Mn At the end Start of FLAT +6% of the day the day CAGR CAGR Relaxing with CAGR close ones Commuting CAGR CAGR 147 2025-30E 446 445 2025-30E 25-30 47 15% 110 6% 110 Unwind/
Slide 7: Well-positioned for growth with our global multi-category strategy
Well-positioned for growth with our global multi-category strategy Primary New Category* Vapor HP +Vapor Vapor + Nicotine Pouches HP Nicotine Pouches Maximizing our ability to switch smokers** and create value Source: Internal estimates. *Primary New Category defined as: >20% user share of New Categ
Slide 8: With significant white space opportunity
With significant white space opportunity Current NC availability* Largest** combustibles markets currently inaccessible for NC Industry BAT BAT 1 NC legal volume combustibles market (sticks bn) volume share position Top 5 24% account for Turkey 159 23% #3 c.95% 2 NC legal of inaccessible 14% All 3 N
Slide 9: BAT has leading global positions across all categories
BAT has leading global positions across all categories Combustibles #1 #1 #2 #1 Volume share since Q4’25 Value share Volume share Combustibles revenue Fastest growing brand in the U.S; Crafting premium with Vuse Ultra Growing in premium with Portfolio of powerful brands leading the category in Europ
Slide 10: Velo has achieved global category leadership
Velo has achieved global category leadership Global Nicotine Pouch volume share Nicotine Pouch industry revenue* revenue 46% (£bn) (£bn) 39% c.3x c.4x 33% 24% 17% 12% 11 4.3 4% 2% 4 1.2 1% 1% Jan Aug Jan Aug Mar Apr May Nov Mar Apr May Nov Jun Sep Jun Feb Jul Dec Sep Feb Jul Dec Oct Oct 2025 2030E 2
Slide 11: Velo is driving our transformation in Europe
Velo is driving our transformation in Europe c.6x larger than #2 Already our largest New Highly profitable competitor in Europe* Category FY25 revenue** FY25 volume share c.3x Premium Gross profit*** positioning vs Heated 62.9% combustibles 68.2% Tobacco 26% Nicotine Value Pouches x5.9 share 44% c.4
Slide 12: Nicotine Pouches are the lowest risk New Category
Nicotine Pouches are the lowest risk* New Category 24 countries with a bespoke regulatory Heated Vapour Nicotine Nicotine Replacement framework (vs 4 in 2022) Products Products Pouches Products Cessation Combustion U.S. officials recognize low risk potential Cigarettes “Nicotine pouches are probably
Slide 13: Premium "Vapor Done Right" is a significant, untapped segment
Premium “Vapor Done Right” is a significant, untapped segment for further value creation Industry £4bn* Our largest New 2025 Category Revenue • Establishing a premium segment £1.5bn • Connectivity with app • Largest NC consumer pool • Gaining value share in launch markets FY25 • c.£7bn white space D
Slide 14: Premium focus in largest Heated Product profit pools
Premium focus in largest Heated Product profit pools Industry £9bn* Establishing premium • Breakthrough premium platform 2025 positioning in HP Revenue £0.9bn • Connectivity with app • Distinctive first to market features • Largest NC by revenue • Strong start with fast premium Fastest ramp-up EasyV
Slide 15: Well-balanced portfolio of combustibles brands
Well-balanced portfolio of combustibles brands Industry COMBUSTIBLES Portfolio of global & local heritage brands £63bn* Resilient delivery 2025 • Balanced, strong portfolio of Revenue brands across all price points £20bn • Targeted investment & execution with RGM** • Mid-term volume decline 3-4% • C
Slide 16: Our transformation is enabled by six core capabilities
Our transformation is enabled by six core capabilities 1 2 3 Deep cross- World-class science Unique R&D category insights and stewardship ecosystem 4 5 6 Global distribution and Front-footed approach Digital retail reach to shape the regulatory excellence landscape Creating an increasingly effective
Slide 17: 1. Deep cross-category insights
1. Deep cross-category insights Actionable Insights on Better Product Needs Digital Step AI for Speed Consumer Moments Foresights Mapping Change and Efficiency Consumer Moments CPG Macro Trends Product Space Mapping Digital Track AI Applications Search Social Reviews ICY FRUITY TROPICAL SIMPLE & MEL
Slide 18: 2. World-class science and stewardship
2. World-class science and stewardship Rigorous scientific research and Extensive scientific substantiation evidence-based learning supports our products as reduced-risk* BAT’s Global Science HEATED VAPOR NICOTINE BAT Science PRODUCTS POUCHES Network by capability by numbers 1,750 Scientists, Resear
Slide 19: 3. Unique R&D ecosystem
3. Unique R&D ecosystem Fully Upgraded Southampton, UK Shenzhen, China Infrastructure Winston-Salem, U.S. 4 Innovation Centers U.S. UK IT CN Strategic Partners +50 Development partners Trieste, Italy Malang, Indonesia Open Innovation Partners 4 First Mover Manufacturing Sites U.S. IT ID CN • Global
Slide 20: 4. Global distribution and retail footprint
4. Global distribution and retail footprint 11m 4-5m 7m 1.5m Outlet reach 2x the retail reach of large-cap CPGs * 5% 15% 5% 10% Channel split: Our brands reach consumers in 60% 55% >140 markets 50% On-premise 80% Modern Our products are on shelf in over 11 million retail outlets globally 40% 40%
Slide 21: 5. Front-footed approach to shaping regulatory landscape
5. Front-footed approach to shaping regulatory landscape Pragmatic and forward looking regulatory engagement A world-first Focus on opening new markets Our go-to authority for Tobacco Harm Reduction and improving regulatory landscape World-class objective science, 24 countries with positive both
Slide 22: 6. Enhanced digital capabilities and strategic partnerships
6. Enhanced digital capabilities and strategic partnerships Connected Consumer AI Powered Insights & Excellence in Commercial Embedding AI Experience Foresights Execution Superior consumer experience Deeper consumer insights Digital B2B technologies Company-wide AI training and via a connected devic
Slide 23: Video – Delivering breakthrough premium innovations
(Video – Delivering breakthrough premium innovations) 23
Slide 24: Confident in sustainably delivering our mid-term algorithm
Confident in sustainably delivering our mid-term algorithm 1. Growing revenue sustainably 3-5% • • 1-2% combustibles growth* Double-digit New Category growth* Revenue growth* 2. Improving profitability 4-6% • Driven by both combustibles and New Categories • Targeted investment in premium New Categor
Slide 25: Transforming & Winning in the U.S.
Transforming & Winning in the U.S. 7.83" David Waterfield President, Reynolds American 25
Slide 26: U.S. market opportunity overview
U.S. market opportunity overview U.S. market is the U.S. is the largest growing Over 60M adult U.S. Multi-category portfolio cornerstone of BAT nicotine revenue pool consumers using nicotine positioned to deliver value strategy globally* products growth Combustibles portfolio back Velo fastest growi
Slide 27: U.S. nicotine market in growth
U.S. nicotine market in growth Total U.S. nicotine industry volumes* 2025 U.S. estimated nicotine revenue pool 434 408 +6.3% ’23 – ’25 CAGR £42bn +6.4% vs FY24 CAGR ’25-’30E +4.3% 383 vs FY23 +6.4% SMOKELESS +16.3% Vapor 295 £10bn Vapor 217 257 +14.6% Oral +18.1% vs FY24 Combustibles +5% to +10% vs
Slide 28: BAT in pole position to win in the biggest nicotine revenue pool globally
BAT in pole position to win in the biggest nicotine revenue pool globally* BAT core capabilities to win in the U.S. 2025 U.S. estimated nicotine revenue pool £42bn CAGR ’25-’30E +4.3% U.S. Scale, Trade Coverage & Contracts Digital Capabilities Operational Embedded in Portfolio Excellence & Productiv
Slide 29: Significantly investing in our U.S. capabilities
Significantly investing in our U.S. capabilities BAT core capabilities to win in the U.S. Velo Plus Case Study Brand Building & U.S. Scale, Trade Coverage & Consumer Activation Apr’25 – Dec’25 25 Contracts SKUs Digital Capabilities Operational National Launch + Distribution Scale 157K Embedded in Ex
Slide 30: Reynolds American is the cornerstone of growth for the BAT Group
Reynolds American is the cornerstone of growth for the BAT Group £2.5bn Investment Committed by 2030* Reynolds American is investing in the U.S. economy by building next-generation capabilities and creating thousands of new jobs to support our growth. 2,000+ New American Jobs* (direct & indirect) Co
Slide 31: Established multi-category portfolio for growth
Established multi-category portfolio for growth U.S. Adult Nicotine Consumer (ANC) Trends Reynolds Multi-Category Portfolio Trends U.S. Nicotine Consumers Interacting or Migrated 65% 32.3% Reynolds Portfolio Total Nicotine Share to New Categories* +19ppts vs 2022 +106bps Full Year 2025 Dec’25 vs Dec
Slide 32: Established multi-category portfolio for growth
Established multi-category portfolio for growth U.S. Adult Nicotine Consumer (ANC) Trends Reynolds Multi-Category Portfolio Trends U.S. Nicotine Consumers Interacting or Migrated 65% 32.3% Reynolds Portfolio Total Nicotine Share to New Categories* +19ppts vs 2022 +106bps Full Year 2025 Dec’25 vs Dec
Slide 33: Strong performance on combustibles strategy
Strong performance on combustibles strategy 2025 U.S. estimated nicotine revenue pool 2025 U.S. combustibles performance £42bn FY25 vs FY24 Volume share Value share Total U.S. combustibles -10bps +30bps Excl. deep discount +70bps +60bps Vapor £10bn Share of AWAP* +20bps +50bps Combustibles +5% to +1
Slide 34: The U.S. New Categories opportunity
The U.S. New Categories opportunity The opportunity today Reasons to believe The size of the prize by 2030 2025 U.S. developing segments revenue U.S. developing segments revenue pool pool estimates estimates projected to grow in value Effective & efficient £15bn regulatory process £20bn – £25bn Effe
Slide 35: U.S. Vapor market begins to formalize in 2025
U.S. Vapor market begins to formalize in 2025 Increased Federal Enforcement Actions Increased State Directory/Enforcement Footprint “The Department of Justice today conducted a nationwide operation to remove illicit vaping products that are being strategically distributed and sold at retailers acros
Slide 36: Vuse: The market leading Vapor brand
Vuse: The market leading Vapor brand Leadership in U.S.* Best positioned to win through disruption** Dec’25 vs Jun’25 2025 Value Share +10.6% Vuse Offtake Volume 51.7% vs -0.1% Industry +200bps vs 2024 Effective Enforcement States Effective +21.5% Enforcement vs 9.7% Industry All Other Competitor St
Slide 37: Actively protecting our rights
Actively protecting our rights FDA/DOJ Joint Task Force Actions Against Illegal Vapor Other Actions International Trade Commission (ITC) Patent infringement Initial ruling/general exclusion order favorable (Aug. 29, 2025) Full Commission final determination FDA Empowered to Fund Enforcement expected
Slide 38: U.S. Nicotine Pouches are the fastest growing category
U.S. Nicotine Pouches are the fastest growing category 2023 2025 2030E • Growing nicotine category 9.7m 15.8m c.25m Nicotine Pouches Consumers • High consumer acceptance 0.5bn 1.2bn c.2.7bn • Growing contestable space Retail Industry Volume (Cans) • Biggest nicotine opportunity £1.0bn £2.3bn c.£7.0b
Slide 39: Velo Plus is the fastest growing brand in the Nicotine Pouches category
Velo Plus is the fastest growing brand in the Nicotine Pouches category Volume +290% Velo Plus 2025 Growth Metrics FY25 vs FY24 Volume share +11.1ppts FY25 vs FY24 86% price index to Consumer Growth XX 2x 24.0% Q4’25 Insights Comp. 1 (+22pp vs Q1’25) c.30% of category users Source: Kantar Q3’25 vs Q
Slide 40: Velo Plus is the fastest growing brand in the Nicotine Pouches category
Velo Plus is the fastest growing brand in the Nicotine Pouches category Volume +290% PMTAs submitted to strengthen our pipeline FY25 vs FY24 Volume share +11.1ppts Capitalizing on BAT’s leadership (Europe) FY25 vs FY24 86% price index to 24.0% Q4’25 Insights Comp. 1 (+22pp vs Q1’25) c.30% of categor
Slide 41: Transforming and delivering sustainable value
Transforming and delivering sustainable value 2025 U.S. Financial Delivery* Deliver sustainable value Role of category +4.6% +19.8% vs FY24 vs FY24 Create incremental value Create incremental +5.5% +5.9% value vs FY24 vs FY24 (Leverage Disposables Enforcement) Supporting BAT’s financial delivery *At
Slide 42: Transforming and delivering sustainable value
Transforming and delivering sustainable value U.S. Portfolio Gross Margin Evolution Deliver sustainable value Role of category Gross margin Create incremental value 75%-78% 73% 65% Create incremental value 2021 2025 2030E (Leverage on Disposables Enforcement) Continued gross margin improvement A pro
Slide 43: Reynolds American best positioned to win in the U.S.
Reynolds American best positioned to win in the U.S. Integrated Capabilities Winning Brands New Categories Opportunity 2030 U.S. developing segments revenue pool estimates £20bn – £25bn U.S. Scale, Trade Coverage & Contracts Digital Capabilities Operational Vapor Oral Embedded in Excellence & £12bn
Slide 44: Capital Markets Day
September 29 – 30, 2026 Winston-Salem, NC Capital Markets Day 44
Slide 45: Please join us for lunch
Please join us for lunch Have you downloaded the new BAT Investor Relations App? Available now to download for free to access live share prices, presentations, news, webcasts, create your own watchlist and download content for offline use. https://myirapp.com/bat/
Slide 46: Appendix
Appendix Unless otherwise stated, absolute financials are presented at constant rates of exchange, growth in financial metrics is presented at constant rates of exchange and share data is presented versus full prior year. A1: Non-GAAP financial measures Adjusting (Adj.) Adjusting items represent cer
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