British American Tobacco P.l.c. · LSE:BATS
British American Tobacco P.l.c — Investor Day (2026)
22 slides from British American Tobacco P.l.c's investor day presentation, Sep 29, 2026
Slide 1: R&D and Innovation Eco-system
R&D and Innovation Eco-system Zafar Khan, Group Operations Director
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: Video – R&D Ecosystem
all y (Video — R&D Ecosystem)
Slide 5: R&D: core growth engine for BAT to deliver 2030 ambition
R&D: core growth engine for BAT to deliver 2030 ambition £1.0bn innovation spend * A Better Tomorrow Building a Smokeless World Switch to Better 3.9% of Group revenue * 27% of Smokeless revenue Quality Sustainable Future Dynamic Business Growth Tobacco Harm Reduction Acceptance Exciting, Winning Com
Slide 6: World-class consumer insights and foresights feed our innovation engine
World-class consumer insights and foresights feed our innovation engine CONSUMER & DEEP CONSUMER THE INNOVATION MARKET INSIGHTS UNDERSTANDING ECOSYSTEM Internal capabilities Strategic supply partners Open innovation Leading Agile scaleup product pipeline Product lifecycle management Digital & AI cap
Slide 7: Consumer driven multi-category portfolio delivered
Consumer driven multi-category portfolio delivered MODERN ORAL VAPOUR HEATED PRODUCTS #1 volume share since Q4 25* #1 value share * #2 volume share * Fastest growing brand in the U.S.; leading the Crafting premium with Vuse Ultra in Market leader in value for money & herbal heated category in Europe
Slide 8: Consumer-led scalable technology menu delivered
Consumer-led scalable technology menu delivered • Modular Technology Platforms enabling faster scaleup Novel Broad range Advanced Broad Advanced Gel tech structure Taste of flavours & flavours & heating nicotine satisfaction nicotine delivery tech nicotine tech Rapid Auto strengths ramp up start str
Slide 9: Consumer-led scalable technology menu delivered
Consumer-led scalable technology menu delivered • Modular Technology Platforms enabling faster scaleup Unique personalisation, mood & Novel Broad range Advanced Broad Advanced Gel tech structure Taste of flavours & moment differentiation flavours & heating nicotine satisfaction nicotine delivery tec
Slide 10: Menu card of technology options enabling quality + speed
Menu card of technology options enabling quality + speed MENU OF TECHNOLOGY FOR CONTINUOUS QUALITY AGILE INNOVATION FUTURE BREAKTHROUGHS ADVANCEMENT >80 technologies ready & tested >20% * 30% ** >100 improvement across NCs faster time to market new technologies being developed Consistent gains acros
Slide 11: Globally integrated innovation ecosystem
Globally integrated innovation ecosystem 5 innovation centres ACCESS U.S. UK IT ID CN Global partner ecosystem Strategic partners 50+ development partners SCALE First mover manufacturing footprint ‘Open innovation’ partners SPEED Co-located innovation and 4 first mover scale-up capabilities manufact
Slide 12: We have world-leading internal capabilities
We have world-leading internal capabilities Technology ‘Centres of Excellence’ UK Leadership on IP and Insights U.S. 800 IT & Foresights employees CN ID Fully integrated science teams Deep expertise. Global reach. Integrated to deliver breakthrough innovation. 12
Slide 13: Strategic partnerships accelerating breakthrough innovation at scale across all three categories
Strategic partnerships accelerating breakthrough innovation at scale across all three categories Integrated into BAT innovation Engine Access to unique and differentiated technologies Circles reference partnership evolution across New Categories since last CMD. 13
Slide 14: A global 'open innovation' ecosystem
A global ‘open innovation’ ecosystem • 100+ active partners and collaborations • >10 programmes progressed to development in last 12 months Broader access. Deeper insights. Faster breakthroughs. 14
Slide 15: We have scaled up our digital and AI capabilities to gain competitive advantage
We have scaled up our digital and AI capabilities to gain competitive advantage MODELLING & SIMULATION ARTIFICIAL INTELLIGENCE DATA AND SYSTEMS 20+ initiatives underway Digital testing Agentic AI Centralised data 3 months reduction knowledge access to input once, use in iteration* 800 R&D employees
Slide 16: Video – AI in R&D
a) SAT (Video — Al in R&D)
Slide 17: Integrated product life cycle management process – driving winning innovation funnel
Integrated product life cycle management process – driving winning innovation funnel 2025 2026 2027 to 2030 Idea to impact: Simpler. Stronger. Smarter. 17
Slide 18: Driving sustainable combustibles growth through consumer-led innovation and simplification
Driving sustainable combustibles growth through consumer-led innovation and simplification SMARTER, SIMPLER BUILDING THE FUTURE CONSUMER-LED INNOVATION OPERATIONS ENGINE * ** 88% >15% Competitiveness Quality improvement World-class Proprietary flavour & Distinctive packaging blending science capsule
Slide 19: Summary
Updated Summary 1 Consumer World-class foresights informing pipeline 2 Ecosystem Global innovation and manufacturing network powering faster, better innovation 3 Speed 30% faster* time-to-market through Tech menu, digital and AI-enabled development 4 Investment £1.0bn** deployed with disciplined gov
Slide 20: Appendices
Appendices capitis Markets ag 2026)
Slide 21: 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
Slide 22: Glossary
Glossary ADC: Average Daily Consumption SKU: Stock Keeping Unit ANC: Adult Nicotine Consumer SPLY: Same Period Last Year APFO: Adjusted profit from operations THR: Tobacco Harm Reduction ARR: Annual Recurring Revenue VIV: Vapour Weighted Industry Volume AWAP: Above weighted average price VFM: Value
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