British American Tobacco P.l.c. · LSE:BATS
British American Tobacco P.l.c — Investor Day (2024)
17 slides from British American Tobacco P.l.c's investor day presentation, Oct 25, 2024
Slide 1: Building a Smokeless World: Managing Combustibles Value
Building a Smokeless World 7.83" Managing Combustibles Value Vincent Duhem, Global Head of Combustibles
Slide 2: Clear path to create value, well into the future
• Combustibles: a solid foundation to our overall transformation • Our Combustibles business is performing well and gaining volume share • Our value creation algorithm works…and will continue to work • All this is based on a broad set of capabilities • Our well-balanced portfolio of brands • The str
Slide 3: A solid combustibles algorithm
A solid combustibles algorithm A strong value creation engine Fuelled by a well-balanced portfolio of brands across tier points AME: +8.0% Revenue*** £22.4bn APMEA: +5.2% Premium Organic revenue FY23 USA: -6.4% Volume share FY23 vs. ‘22 growth** Growth +1.3% Group Top markets* 2020-23 revenue growth
Slide 4: Unparalleled consumer reach and expertise
Unparalleled consumer reach and expertise High-scaled customer and consumer reach A century of long expertise in mastering combustibles products 37 12m Factories Across in 5 continents Outlets served 33% Reduction +100m Scope 1+2 emissions** Daily users* +16k Factory employees +90k directly-contract
Slide 5: Focus where it matters
Focus where it matters Consumer opportunity spaces Key BAT Combustibles markets Half of adult smokers navigating through different Market % BAT Combustibles cigarette offers in last 12 months* archetypes revenue 50% Drive Combustibles value 12% Focus 34% 16% More than 1 cigarette offer New cigarette
Slide 6: Opportunities for BAT to drive value
Opportunities for BAT to drive value 1. Maximise our brand assets • Respond to consumer drivers: premium, flavours & affordability • Keep brand expression up to date • Stretch brand equity up and/or down • Design fit for regulations offers 2. Sharpen our execution guided by market archetypes • Resou
Slide 7: (Video - Combustibles)
(Video - Combustibles) Ww > q ” 2026
Slide 8: Our Combustibles portfolio
Our Combustibles portfolio c.80% of Combustibles revenue c.20% of Combustibles revenue Global drive U.S. Local brands brands Source: BAT combustibles revenue FY23. The BAT Group does not own all brands featured in all countries. 8
Slide 9: Strong premium brands and innovations
Strong premium brands and innovations Fastest growing global Most innovative global True premium BAT brand BAT brand tobacco brand LADDERING LADDERING FLAVOURS DOWN UP 9
Slide 10: Robust and flexible VFM portfolio
Robust and flexible VFM portfolio Biggest brand in BAT portfolio Biggest BAT brand in AME region LADDERING LADDERING DOWN UP 10
Slide 11: U.S. Iconic brands
U.S. Iconic brands Market leader in menthol Most iconic brand Fastest growing in premium LADDERING LADDERING LADDERING DOWN UP UP The BAT Group does not own all brands featured in all countries. 11
Slide 12: Enhancing local brand assets where it matters
Enhancing local brand assets where it matters Strong local brands in big end markets Collaborations between global and local brands For example: BGD PAK • Brand collaboration • Similar pack expression MEX • Innovation cascading 12
Slide 13: Our Combustibles strategy in action
Our Combustibles strategy in action BAT Brazil: Portfolio transformation BAT Romania: Winning with our assets From: Premium 49% share* innovation Premium Segment volume share +30bps To: Laddered range 86% share* #1 brand in Aspirational Premium Brand 32% share* 68.5% 51bn +7.6% revamp Low Segment St
Slide 14: A step change in our productivity
A step change in our productivity Leaf & blends Wrapping materials Productivity • Flexible sourcing & contracts • Archetype guardrails • Supply sourcing -76% Leaf grades* -51% Cigarette formats* Simplification ambition for 2025 -53% Blends* -32% Pack formats* -12 Cigarettes manufacturing footprint r
Slide 15: Sustained BAT growth and margins through pricing and simplification
Sustained BAT growth and margins through pricing and simplification Sustained long term value delivery Maintaining & improving category high margins Volume Revenue* 60% -3.7% +1.3% 58% c.2ppts 2020-2023 CAGR 2020-2023 CAGR Transactional FX* Category contribution** c.-2.0% +1.8% Annually 2020-2023 CA
Slide 16: Key take aways: robust delivery
Key take aways: robust delivery Combustibles: a solid and resilient foundation to our transformation Remaining • Consumer retention with laddering competitive • Winning in growing segments → consolidate profitable share • Pricing opportunities Extracting • Revenue growth management value • Portfolio
Slide 17: Appendix
Appendix A1: Adjusting (Adj.) Adjusting items represent certain items which the Group considers distinctive based upon their size, nature or incidence. A2: Constant currency Constant currency – measures are calculated based on the prior year's exchange rate, removing the potentially distorting effec