British American Tobacco P.l.c. · LSE:BATS
British American Tobacco P.l.c — FY2025 Earnings Presentation
46 slides from British American Tobacco P.l.c's earnings presentation, Feb 12, 2026
Slide 1: Building a Smokeless World
Building a Smokeless World Preliminary Results 2025 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: Momentum drives further confidence in 2026 delivery
Momentum drives further confidence in 2026 delivery Preliminary Results 2025 Tadeu Marroco – Chief Executive
Slide 5: Driving a sustainable transformation in 2025
Driving a sustainable transformation in 2025 • Progress towards a Smokeless World • Consumers of Smokeless* products +4.7m to 34.1m • Smokeless represents 18.2% of Group revenue, +70bps** • FY25 results at top end of guidance A Better • Return to U.S. growth and robust AME delivery Tomorrow • Excell
Slide 6: Delivering on key 2025 deployment year priorities
Delivering on key 2025 deployment year priorities What we said What we delivered Continue to build track record of delivery FY results at top end of guidance Delivering Quality Growth in New Categories Return to double-digit NC revenue growth in H2* Increasing NC returns NC contribution
Slide 7: FY25 results at top end of guidance
FY25 results at top end of guidance Preliminary Results 2025 Javed Iqbal – Interim Chief Financial Officer
Slide 8: FY25 performance at top end of guidance
FY25 performance at top end of guidance Adjusted for Adjusted for Reported Canada Canada current currency current currency constant currency growth New Category Revenue £ 3,621m £ 3,621m +7.0% Total Revenue £ 25,610m £25,610m +2.1% Profit from Operations £ 9,997m £ 11,279m* +2.3%* Operating Margin 3
Slide 9: FY25 performance at top end of guidance
FY25 performance at top end of guidance Revenue Adjusted gross profit* Adjusted profit from Adjusted diluted (£bn) (£bn) operations* (APFO) earnings per Share* (EPS) (£bn) (pence) +2.1% +3.4% +2.3% +3.4% vs. FY24 vs. FY24 vs. FY24 vs. FY24 26.4 17.5 11.6 341.1 352.8 25.9 17.0 11.4 FY24 FY25 FY24 FY2
Slide 10: Delivering Quality Growth in New Categories
Delivering Quality Growth in New Categories Revenue Adjusted gross profit/margin Category contribution/margin (£m) (£m) (£m) +7.0% +11.0% +77.1% vs. FY24 vs. FY24 vs. FY24 58.4% 12.0% 7.3% 3,673 56.3% 2,145 442 3,432 1,932 249 FY24 FY25 FY24 FY25 FY24 FY25 Accelerating to low double-digit revenue gr
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) +1.0% +2.5% +2.5% vs. FY24 vs. FY24 vs. FY24 68.1% 67.1% 58.6% 57.7% 20,685 20,887 14,227 12,235 13,878 11,931 FY24 FY25 FY24 FY25 FY24 FY25 Growth in U.S. and AME more th
Slide 12: U.S. back to revenue and profit growth
U.S. back to revenue and profit growth Combustibles • Strong price/mix (including excise duty drawback) offset volume decline of 7.7% Combustibles • Strengthened combustibles and enhanced commercial execution underpin delivery Revenue 4.6% • Value share +30bps, volume share -10bps (excl. deep discou
Slide 13: Robust AME performance
Robust AME performance Combustibles • Strong price/mix offset volume decline of 4.9% Combustibles • Growth in Brazil, Türkiye and Mexico, partly offset by Germany and Canada Revenue 2.3% • Volume share +10bps driven by Brazil and Mexico; value share -70bps New Categories New Category • Clear Velo le
Slide 14: APMEA impacted by fiscal and regulatory headwinds in Bangladesh and Australia
APMEA impacted by fiscal and regulatory headwinds in Bangladesh and Australia Combustibles • Growth in Pakistan, Nigeria and Indonesia offset by Bangladesh and Australia Combustibles • Volume and value share both -40bps driven by Japan Revenue -8.3% New Categories • Velo revenue +44%, led by Global
Slide 15: Group operating margin stable at 44%
Group operating margin* stable at 44% +8bps +6bps 0.5% 0.8% 0.5% 0.3% 1.0% 0.0% 0.5% 44.0% 44.0% 44.0% FY24 Traditional New Category Transactional Category Mix Overheads Other expense FY25 Translational FX FY25 Category Contribution FX Constant Current Contribution FX FX Performance gains offset inf
Slide 16: Increasing agility and productivity savings
Increasing agility and productivity savings Further commitment Productivity £1.2bn c.£2.0bn savings Delivered 2023-2025 2026-2030 Focused on Cost of Sales 2023 2024 2025 2026 2027 2028 2029 2030 Fit2Win Operational c.£600m savings (prev. c.£500m) Predominantly focused on Annualised savings by end 20
Slide 17: Fit2Win: Reinvesting c.£600m annualised savings to drive sustainable Quality Growth
Fit2Win: Reinvesting c.£600m annualised savings to drive sustainable Quality Growth Streamlining Organisation Modernising Route to Market Greater end-to-end ownership, visibility and accountability More sustainable and agile service Clearer accountabilities with model Faster, more agile exec
Slide 18: Adjusted diluted EPS up +3.4%
Adjusted diluted EPS* up +3.4% -0.2% +3.4% +2.3% APFO growth -3.7% -1.5 1.0 -2.0 4.2 -1.4 11.6 -12.3 +1.1% kickers 352.8 341.1 340.5 FY24 Adj. profit from Net finance cost Associates Tax Share buy-back Others FY25 Constant Translational FY25 Operations and hybrid impact FX FX Operating performance,
Slide 19: 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 Ta
Slide 20: Returning to our sustainable financial algorithm
Returning to our sustainable financial algorithm Mid-term algorithm 2026 delivery at lower end of range • Sustained U.S. revenue and profit growth Revenue growth 3-5% • • Low double-digit NC revenue growth, led by Velo globally Targeted investment in priority markets: • Roll-out of our premium NC in
Slide 21: Confident in our sustainable transformation
Confident in our sustainable transformation Preliminary Results 2025 Tadeu Marroco – Chief Executive
Slide 22: A predominantly Smokeless business by 2035
Delivering on priorities to drive sustainable shareholder value A Better Tomorrow A predominantly Building a Switch Smokeless business by 2035 Smokeless to Better World Quality Sustainable Dynamic Growth Future Business Building a Smokeless World 22
Slide 23: Good progress across all three strategic pillars
Good progress across all three strategic pillars Quality Sustainable Dynamic Growth Future Business Successful re-set of Proactive external affairs Driving efficiencies to support our U.S. business approach re-investment Enhanced innovation Forward thinking THR* Strategic partnerships and ecosystem
Slide 24: Progress made since 2023 on key priorities
Progress made since 2023 on key priorities Quality Sustainable Dynamic Growth Future Business Successful re-set of Proactive external affairs Driving efficiencies to support 1 approach re-investment our U.S. business Enhanced innovation Forward thinking THR* Strategic partnerships and ecosystem thro
Slide 25: U.S. Combustibles return to growth
1 Successful re-set of our U.S. business U.S. Combustibles return to growth Strengthened portfolio and sharper execution FY25 vs. FY24 (bps) Volume Share Value Share 1 Re-addressed price gaps and indexation Total U.S. combustibles -10 +30 2 Expanded contract coverage to 88% Excl. deep discount +70 +
Slide 26: Velo is fastest growing brand in fastest growing New Category
1 Successful Quality re-set of our U.S. business Growth Velo is fastest growing brand in fastest growing New Category 54.7% Change since Q4’25 insights Comp 1 launch 45.3% -9.5pp 86% price index to competitor 1* (+22pp vs. Q1’25) Comp 2 25.3% 24.0% +17.9pp c.30% MO consumers have tried Velo Plus -6.
Slide 27: Further strengthening our premium portfolio in AME
2 Premiumising our NC portfolio Further strengthening our premium portfolio in AME Velo in Europe – Clear leadership at a premium price positioning 63% BAT AME c.6x volume share larger than #2 competitor* Distinctive & Innovative & Elevated Taste Premium Comfortable Velo Shift Can Design Pouch Exper
Slide 28: Premium "Vapour Done Right" is a significant, untapped segment
2 Premiumising our NC portfolio Premium “Vapour Done Right” is a significant, untapped segment for further value creation Strengthening premium Premium platform driving brand credentials* Vuse performance Ultra image attributes higher than key competitors DEVICE PODS c.200% c.125% Premium avg. pri
Slide 29: glo Hilo: establishing premium positioning in HP
2 Premiumising our NC portfolio glo Hilo: establishing premium positioning in HP Attracting premium consumers with Strong start in key markets*** superior imagery* % from Premium Imagery vs. Hyper Pro combustibles or glo Hilo volume share (%) other HP INNOVATIVE GREAT TASTE 48% +8pp +6pp JPN INNOVAT
Slide 30: Strengthening glo in value-for-money segment
2 Premiumising our NC portfolio Strengthening glo in value-for-money segment QuickStartTM Connectivity Improved hygiene Replaceable battery From Q2‘26 Longer standard session length COMPLEMENTED WITH ENHANCED CONSUMABLES FOR STRONGER SYSTEM UPGRADE Strengthening high intensity tobacco Expanding our
Slide 31: Improving NC profitability
3 Improving NC profitability Driving £1.4bn profitability improvement since 2021 Year-on-year improvement driven by FY21 FY22 FY23 FY24 FY25 1 Scale benefits 0.4 0.2 2 Pricing B/E -0.4 3 Targeted resource allocation -1.0 4 Market footprint optimisation +£1.4bn New Category contribution (£bn) Quality
Slide 32: Recent U.S. Vuse growth supported by enforcement actions
4 Positive NC regulatory progress Quality Growth Recent U.S. Vuse growth supported by enforcement actions Increased federal and state enforcement… … Supporting Vuse gains* VUSE Offtake Dec’25 vs Jun’25 +10.6% Volume vs. -0.1% Industry WI RI IA PA NE UT CO VA Effective CA KY Enforcement States Effect
Slide 33: Encouraging incremental enforcement levers
4 Positive NC regulatory progress Quality Growth Encouraging incremental enforcement levers FDA/DOJ Joint Task Force Actions Against Illegal Vapour Other Actions International Trade Commission (ITC) Patent Initial ruling/general exclusion order favourable (29 Aug 2025) FDA Empowered to Fund Enforcem
Slide 34: FDA supports THR based on science
4 Positive NC regulatory progress Growth FDA supports THR based on science Progress on THR agenda and FDA Regulation Tobacco Harm Reduction PMTAs submitted to strengthen our pipeline “…Nicotine itself does not cause cancer. Capitalising on BAT’s leadership (ROW) There is no evidence that it’s carcin
Slide 35: Strong cash flow enhancing financial flexibility and cash returns
5 Enhancing financial flexibility Quality Growth Strong cash flow enhancing financial flexibility and cash returns Reducing leverage to within Highly cash generative Increased share buy-backs target range* by end FY26 >95% 2.0-2.5x 1.3 Target range* 1.1 Annual operating cash conversion 0.7 0 FY23 FY
Slide 36: Confident in sustainably delivering our mid-term algorithm
Confident in sustainably delivering our mid-term algorithm 1. Growing revenue sustainably Revenue growth 3-5% • • 1-2% combustibles growth Double-digit New Category growth 2. Improving profitability • Driven by both combustibles and New Categories 4-6% • Targeted investment in premium New Categories
Slide 37: Delivering on priorities to drive sustainable shareholder value
Delivering on priorities to drive sustainable shareholder value • FY25 delivery at the top end of guidance • Return to sustainable revenue and profit* growth in the U.S. A Better • Robust AME multi-category performance; expect APMEA Tomorrow performance to stabilise in 2026 Building a • Velo now glo
Slide 38: Q&A Preliminary Results 2025
Q&A Preliminary Results 2025 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 c
Slide 39: BAT presents at 2026 CAGNY conference
BAT presents at 2026 CAGNY conference 18 February 2026 11am ET / 4pm GMT Join the live webcast on www.bat.com/CAGNY2026 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
Slide 40: Appendix
Appendix Preliminary Results 2025 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 41: Appendix: Our shares in top markets
Appendix: Our shares in top markets* Cigarettes Volume share of Vuse Value share glo Volume share Velo Volume share Volume share of Cigarettes of Total Vapour of HP of Total Oral of Modern Oral FY25 Change FY25 Change FY25 Change FY25 Change FY25 Change volume FY25 vs. value FY25 vs. volume FY25 vs.
Slide 42: Appendix: Financial guidance for FY26
Appendix: Financial guidance for FY26 • Global cigarette industry volume expected to be down c.2% • Lower end of our medium-term guidance ranges: • 3-5% revenue growth, with low double-digit New Category revenue growth • 4-6% adjusted profit from operations growth* - H2 weighted • Expected c.1% tran
Slide 43: Appendix: Non-GAAP Measures Reconciliation
Appendix: Non-GAAP Measures Reconciliation Adjusted Profit from Operations FY25 (£m) FY24 (£m) Profit from operations 9,997 2,736 Restructuring 66 - Amortisation and impairment of trademarks and similar intangibles 1,584 2,279 (Credit)/charges in respect of Romania's other taxes (15) 449 (Credit)/ch
Slide 44: Appendix: FY25 Adjusted for Canada
Appendix: FY25 Adjusted for Canada Adjusted for Year ended 31 December 2025 (£m) Adjusting Adjusted for Canada at constant Reported items Adjusted Canada Canada Exchange Currency Profit from Operations U.S. 4,942 1,601 6,543 - 6,543 223 6,766 AME 3,433 (128) 3,305 (293) 3,012 57 3,069 APMEA 1,622 10
Slide 45: Appendix: Measuring our transformation
Appendix: Measuring our transformation What we measure How we measure it 2024 2025 Are we growing revenue? Revenue growth (%) +1.3% +2.1% Are we transforming? Smokeless revenue/total revenue (%) 17.5% 18.2% Are we delivering value as we grow? Adjusted gross profit growth* (%) +2.2% +3.4% Is the tran
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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