British American Tobacco P.l.c. · LSE:BATS
British American Tobacco P.l.c — H1 2026 Earnings Presentation
42 slides from British American Tobacco P.l.c's earnings presentation, Jul 30, 2026
Slide 1: Building a Smokeless World
Building a Smokeless World Interim Results 2026 Tadeu Marroco – Chief Executive | Javed Iqbal – Interim Chief Financial Officer
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: H1 performance drives further confidence in sustainable delivery
H1 performance drives further confidence in sustainable delivery Interim Results 2026 Tadeu Marroco – Chief Executive
Slide 5: Driving a sustainable transformation
Driving a sustainable transformation Progress towards a Smokeless World • Consumers of Smokeless products* +4.1m** to 35.0m • Smokeless now 19.8% of Group revenue, +160bps*** HY26 results in line with expectations • Strong U.S. multi-category delivery A Better • Excellent Velo performance in all thr
Slide 6: Accelerating financial delivery
Accelerating financial delivery New Categories Group Revenue Contribution Revenue Adj. Profit from Operations* Growth Margin Growth Growth 18.0% 3.5% 13.8% 2.9% 12.0% 2.3% 10.5% 2.1% 1.8% 1.9% 7.0% 2.4% HY25 FY25 HY26 HY25 FY25 HY26 HY25 FY25 HY26 HY25 FY25 HY26 Building momentum as we transform His
Slide 7: H1 results in line with expectations
H1 results in line with expectations Interim Results 2026 Javed Iqbal – Interim Chief Financial Officer
Slide 8: H1 results in line with expectations
H1 results in line with expectations Adjusted for Adjusted for Reported Canada Canada current currency current currency constant currency growth New Category Revenue £ 1,928m £ 1,928m +18.0% Total Revenue £12,235m £12,235m +2.9% Profit from Operations £ 4,266m £ 5,319m* +3.5%* Operating Margin 34.9%
Slide 9: H1 performance gives confidence in delivering FY guidance
H1 performance gives confidence in delivering FY guidance Revenue Adjusted gross profit* Adjusted profit from Adjusted diluted (£bn) (£bn) operations* (APFO) earnings per share* (EPS) (£bn) (pence) +2.9% +3.8% +3.5% +7.9% vs. HY25 vs. HY25 vs. HY25 vs. HY25 12.4 8.3 5.4 167.8 12.1 5.2 8.0 155.5 HY25
Slide 10: Accelerating New Category top and bottom line delivery
Accelerating New Category top and bottom line delivery Revenue Adjusted gross profit/margin Category contribution/margin (£m) (£m/%) (£m/%) +18% +13% +55% vs. HY25 vs. HY25 vs. HY25 57.2% 13.8% 59.8% 10.5% 1,947 1,115 269 1,651 987 174 HY25 HY26 HY25 HY26 HY25 HY26 Expect mid-teens revenue growth fo
Slide 11: Continuing to drive value from combustibles
Continuing to drive value from combustibles Revenue Adjusted gross profit*/margin* Category contribution*/margin* (£m) (£m/%) (£m/%) +2.1% +3.1% +2.7% vs. HY25 vs. HY25 vs. HY25 68.2% 67.6% 58.0% 57.7% 9,716 9,515 6,630 6,428 5,490 5,637 HY25 HY26 HY25 HY26 HY25 HY26 Growth in U.S. and AME more than
Slide 12: Strong multi-category performance in the U.S.
Strong multi-category performance in the U.S. Combustibles • Strong price/mix (including excise duty drawback) offsets volume decline of 5.2% Combustibles • Value share -40bps, volume share -80bps Revenue 5.0% • Heightened competitive activity from Q4’2025 • Our volume share has stabilised since Jan
Slide 13: Resilient AME performance
Resilient AME performance Combustibles • Strong price/mix offsets volume -6.2%; Volume share flat; value share -20bps Combustibles • Revenue growth in Brazil, Türkiye & Mexico partly offset by Germany, Romania Revenue 2.5% and exit from Cuba New Categories • Velo: Continued industry growth driving M
Slide 14: APMEA delivering sequential recovery in H1'26 vs. H2'25
APMEA delivering sequential recovery in H1’26 vs. H2’25 Combustibles • Revenue growth in Pakistan and Indonesia more than offset by Bangladesh, Australia, Malaysia and Vietnam Combustibles Revenue -4.8% • Volume share -20bps and value share -30bps driven by Japan New Categories • Velo growth driven
Slide 15: Growing operating margin while continuing to invest
Growing operating margin* while continuing to invest +10bps +30bps -0.2% 0.6% -0.9% 1.3% -0.5% -0.2% 43.4% 43.7% 43.5% HY25 Traditional New Category Transactional Category Mix Overheads HY26 Translational FX HY26 Category Contribution FX and other Constant Current Contribution FX FX Expansion driven
Slide 16: Fit2Win: Reinvesting c.£700m annualised savings to drive sustainable Quality Growth
Fit2Win: Reinvesting c.£700m annualised savings to drive sustainable Quality Growth Streamlining Organisation Modernising Route to Market More sustainable and agile service End-to-end visibility and Clearer accountabilities with model accountability differentiated KPIs and incentives Empower
Slide 17: Adjusted diluted EPS up +7.9%
Adjusted diluted EPS* up +7.9% +5.5% +7.9% -0.9 0.6 +3.5% -2.2 2.2 -3.8 APFO growth 4.4 +4.4% kickers 8.2 167.8 164.0 155.5 HY25 Adj. Profit from Net Finance Cost Associates Tax Share Buy-Back Non-controlling HY26 Constant Translational HY26 Current Operations and Hybrid Interests FX FX FX Upgraded
Slide 18: Strong cash flow generation driving enhanced financial flexibility
Strong cash flow generation driving enhanced financial flexibility Cash generation Generate >£50bn Free Cash Flow 2024-2030* Deliver business transformation Targeted investment in business transformation Optimise portfolio Continuously review our footprint and drive cash flows Progressive dividend T
Slide 19: Returning to our mid-term financial algorithm
Returning to our mid-term financial algorithm Mid-term algorithm FY26 revenue and APFO* delivery at lower end of range Revenue growth 3-5% • • Mid-teens NC revenue growth, led by Velo & Vuse Targeted investment in priority markets: • Roll-out of Velo Max and Vuse flavours in the U.S. • Continued rol
Slide 20: Confident in our sustainable transformation
Confident in our sustainable transformation Interim Results 2026 Tadeu Marroco – Chief Executive
Slide 21: Building momentum as we transform
Building momentum as we transform Accelerating financial delivery as we return to algorithm for FY26 New Categories Group Key areas of investor focus Revenue Contribution Revenue Adj. profit from Growth Margin Growth Operations* Growth 1 Sustainable U.S. multi-category delivery 2 Progress on enforce
Slide 22: We are fastest growing in U.S. total nicotine
1 Sustainable U.S. multi-category delivery We are fastest growing in U.S. total nicotine % volume share Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 33.3 33.3 33.1 32.9 32.4 32.3 Total Nicotine Combustibles HY26 Highlights 53.3 53.7 52.2 Vapour 49.5 47.6 47.7 30.7 31.9 27.7 YTD volume share +1.1pp Total Oral
Slide 23: U.S. combustibles industry declines moderating
1 Sustainable U.S. multi-category delivery U.S. combustibles industry declines moderating Improving combustibles industry volume trends Key drivers of moderating decline HY24 HY25 HY26 • Sequentially lower category outflow • ADC decline moderation • Reduced outflow to illicit Vapour • Continued down
Slide 24: Leveraging our portfolio and well-established capabilities to drive sustainable value
1 Sustainable U.S. multi-category delivery Leveraging our portfolio and well-established capabilities to drive sustainable value Actively enhancing our portfolio Targeted execution Targeted investments to support Newport in Premium 1 Extensive contract coverage at c.90% Lucky Strike & Pall Mall Sele
Slide 25: Regulatory and enforcement actions support U.S. New Category growth
2 Progress on enforcement and FDA guidance Regulatory and enforcement actions support U.S. New Category growth Legal Vapour industry returned to growth* – H1 volume +1.6%, supported by: • c.50% Vapour industry covered by state level directories and enforcement • Federal action with Operation Red Mis
Slide 26: Extended U.S. Vuse leadership supported by enforcement
2 Progress on enforcement and FDA guidance Extended U.S. Vuse leadership supported by enforcement Further consolidation of Vuse value share Phased roll out of new flavoured leadership* pods from Q3 Vapour RSD Value Share HY26 vs FY25 55.9% +4.1pp Comp 1 26.9% +0.1pp Comp 2 2.9% -3.0pp Disposables**
Slide 27: Broadening our U.S. Velo portfolio to drive further growth
3 Outlook for MO in the U.S. and globally Broadening our U.S. Velo portfolio to drive further growth Velo Plus continues to drive strong share gains* Enhancing the portfolio with a wider range of strengths and flavours 53.8% 41.1% 31.0% 25.4% 16.8% 7.3% Sep-25 Dec-24 Dec-25 Jan-25 Feb-25 May-25 Oct-
Slide 28: Extending global leadership in the fastest growing NC
3 Outlook for MO in the U.S. and globally Extending global leadership in the fastest growing NC Modern Oral Modern Oral shipments volume* volume share in (bn pouches) Top Markets 7.9 39.2% BAT 7.2 #2 Competitor 33.4% 5.0 H1'25 H2'25 H1'26 H1'26 Driven by strong growth in all three regions * Source:
Slide 29: Clear MO leadership in AME, driving strong growth and financial delivery
3 Outlook for MO in the U.S. and globally Clear MO leadership in AME, driving strong growth and financial delivery c.7x larger than #2 Driving AME growth beyond more Shift - Driving premium competitor in top AME markets* traditional markets** differentiation through innovation*** HY26 volume share %
Slide 30: Resetting our glo performance
4 Drivers of performance improvement in HP Resetting our glo performance Industry growth slowing alongside heightened Further refining our focus in priority markets to competitive activity drive improved returns over time 12% Scaling premium growth 9% Strengthening our value offer 7% Differentiated
Slide 31: glo Hilo continues to drive premium share progress in priority markets
4 Drivers of performance improvement in HP glo Hilo continues to drive premium share progress in priority markets c.50% Consumers new to glo** Hilo volume share*** (%) Hilo share in Premium*** (%) May ‘26 vs. Dec ‘25 May ‘26 JPN POL ITA JPN 1.8 +60bps 3.7 Delivering on glo image improvement** POL 4.
Slide 32: Building blocks to FY27 improvement vs. FY26
5 Building blocks to FY27 delivery Building blocks to FY27 improvement vs. FY26 1. New Category revenue drivers 3-5% • Continued strong growth in MO globally Revenue growth • Leading momentum in U.S. Vapour; continuing to drive Vuse Ultra in Premium • Resetting HP in select markets with glo Hilo and
Slide 33: Delivering on priorities to drive sustainable shareholder value
Delivering on priorities to drive sustainable shareholder value • HY26 delivery in line with expectations, with FY EPS upgrade • Velo extends leadership in fastest growing New Category A Better • Increasing New Category profitability* Tomorrow • Strong multi-category delivery in the U.S. Resilient A
Slide 34: Coming soon
Coming soon 29-30 September 2026 Winston-Salem, NC • Data, digital & AI driving competitive advantage • Winning capabilities in total nicotine • The next generation of New Categories • Advancing THR and a sustainable regulatory landscape • Driving long-term shareholder value and returns For further
Slide 35: Q&A Interim Results 2026
Q&A Interim Results 2026 Tadeu Marroco – Chief Executive | Javed Iqbal – Interim Chief Financial Officer 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 conte
Slide 36: Appendix
Appendix Interim Results 2026 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 37: Appendix: Financial guidance for FY26
Appendix: Financial guidance for FY26 • Global cigarette industry volume expected to be down c.3% • Lower end of our medium-term guidance ranges: • 3-5% revenue growth, with mid-teens New Category revenue growth • 4-6% adjusted profit from operations growth* - H2 weighted • Expected c.1% transaction
Slide 38: Appendix: Our shares in top markets
Appendix: Our shares in top markets* Cigarettes Volume share Velo Volume share Volume share Vuse Value share glo Volume share of Cigarettes of Total Oral of Modern Oral of Total Vapour of HP HY26 Change HY26 Change HY26 Change HY26 Change HY26 Change volume HY26 vs. volume HY26 vs. volume HY26 vs. v
Slide 39: Appendix: Non-GAAP Measures Reconciliation
Appendix: Non-GAAP Measures Reconciliation Adjusted Profit from Operations HY26 (£m) HY25 (£m) Profit from operations 4,266 5,069 Restructuring 370 13 Amortisation and impairment of trademarks and similar intangibles 796 804 Impairment of goodwill - 72 Credit in respect of Romania's other taxes (2)
Slide 40: Appendix: HY26 Adjusted for Canada
Appendix: HY26 Adjusted for Canada Adjusted for Period ended 30 June 2026 (£m) Adjusting Adjusted for Canada at constant Reported items Adjusted Canada Canada Exchange currency Profit from Operations U.S. 2,595 652 3,247 - 3,247 124 3,371 AME 1,212 259 1,471 (107) 1,364 (30) 1,334 APMEA 459 249 708
Slide 41: 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 42: Glossary
Glossary ADC: Average Daily Consumption APFO: Adjusted profit from operations AWAP: Above weighted average price EPS: Earnings per Share HP: Heated Products MO: Modern Oral NC: New Categories RGM: Revenue Growth Management THR: Tobacco Harm Reduction 42
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