British American Tobacco P.l.c. · LSE:BATS
British American Tobacco P.l.c — Investor Day (2026)
43 slides from British American Tobacco P.l.c's investor day presentation, 2026
Slide 1: New Categories Future-forward Portfolio Strategy
New Categories Future-forward Portfolio Strategy Anniek Kindts, Global Head of New Categories
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: Leading the New Category transformation
Leading the New Category transformation An ambition that is well on its way with consistent achievement of our targets 2030 AMBITION* …WELL ON ITS WAY WITH LEADING GLOBAL POSITIONS ACROSS NCs Mid- MODERN ORAL VAPOUR HEATED PRODUCTS NC revenue teens YoY growth NC >30% contribution #1 #1 #2 Global Smo
Slide 5: Distinct roles of the categories in our growth strategy
Distinct roles of the categories in our growth strategy MODERN ORAL NC INHALATION VAPOUR (VP) HEATED PRODUCTS (HP) Today Today Today #1: Leading and fastest growing in the #1: Positive momentum and #2: Affordability leadership and fastest growing category* Premium leadership* Premium participation*
Slide 6: NC forward portfolio focused on growth and differentiation
NC forward portfolio focused on growth and differentiation 01 02 PORTFOLIO GROWTH STRATEGY MODEL Portfolio strategy anchored in Operational growth deployed along Consumer Demand Moments a consumer-centric within and across categories Flywheel model The consumer is at the centre of our NC strategy an
Slide 7: Distinct roles of the categories in our growth strategy
Distinct roles of the categories in our growth strategy MODERN ORAL NC INHALATION VAPOUR (VP) HEATED PRODUCTS (HP) Today Today Today #1: Leading and fastest growing in the #1: Positive momentum and #2: Affordability leadership and fastest growing category* Premium leadership* Premium participation*
Slide 8: Consumers are making a unique choice to adopt MO
Consumers are making a unique choice to adopt MO UNMATCHED ANY TIME / ANYWHERE PROGRESSIVE/ LOWEST ON BAT’S MODEL CONVENIENCE USAGE MOMENTS TRUSTED IMAGE RISK CONTINUUM* † Frictionless experience Category: No devices, no batteries, Furthest removed from no separate consumable smoking ritual No stick
Slide 9: Modern Oral is the fastest growing New Category
Modern Oral is the fastest growing New Category INCREASING FASTEST GROWING FASTEST GROWING ADOPTION CONSUMER BASE*** INDUSTRY VALUE^ (Adult consumers, m) (£bn) 2025 → 2030: c.2x 2025 → 2030: c.3x Active 2022 11% usage* 2025 21% c.2x 47 11 Daily 2022 36% 24 usage** 2025 59% c.1.6x 4 11 1 2022 2.8 202
Slide 10: With significant white space opportunity
With significant white space opportunity CATEGORY INCIDENCE IS ACCELERATING ALMOST HALF OF COMBUSTIBLES INDUSTRY BUT STILL IN THE EARLY DAYS IS STILL INACCESSIBLE FOR MODERN ORAL** 2025 → 2030: c.1.6x 5.8% Unavailable / inaccessible: c.45% 3.7% 2.0% Legal & available: c.55% 2022 2025 2030E Modern Or
Slide 11: Velo is the fastest growing brand and clear leader
Velo is the fastest growing brand and clear leader VELO CAPTURING MOST VELO DRIVING BAT LEADERSHIP POWERED DRIVEN BY BYAN A ICONIC STRONG OF INDUSTRY GROWTH IN MODERN ORAL RETAIL SHARE** GLOBAL BRAND Brand strength index3 48.6% 40.3% 41.4% #1 c.75% SWE SWE DEN SWI POL UK 24.9% 127 139 167 162 103 31
Slide 12: Velo synonymous with the Modern Oral category
Velo synonymous with the Modern Oral category CREDIBLE AND TRUSTED CONSUMER OBSESSED CULTURALLY EMBEDDED Our responsibility as the leader* End-to-end consumer journey – Sharing culturally significant underpinned by Velo’s brand purpose education, acquisition & retention moments with our consumers A
Slide 13: 18+ only. This product contains nicotine and is addictive.
13 18+ ONLY. THIS PRODUCT CONTAINS NICOTINE AND IS ADDICTIVE. FOR ADULT NICOTINE CONSUMERS ONLY.
Slide 14: Leading Velo mix from category adoption to establishment
Leading Velo mix from category adoption to establishment FOCUSING ON Accompany adjustment to the PRODUCT QUALITY ADOPT ritual through milder 1. sensation product Flavour stabilisation technologies Nicotine delivery DISCOVER Lead flavour technologies exploration through 2. a diverse portfolio Superio
Slide 15: Shift is driving premium differentiation
Shift is driving premium differentiation NEW PREMIUM MIX UPLIFTING VELO EQUITY SUPPORTING VELO GROWTH IN SWEDEN* IN VOLUME SHARE** Index Innovative 150 Velo 55.9% SWE Shift 0.8% Velo +1.3 pp since Shift launch Premium 139 Velo 94.2% Modern 139 SWI Shift 2.4% • Unique can design & comfort pouch Build
Slide 16: Further shaping the category through innovation
Further shaping the category through innovation OPTIMUM PRODUCT PURPOSEFUL RANGE EXPANSION VELO WRKS: OUR NEW IN LOWER NICOTINE FOR IN THE U.S. WITH VELO MAX INNOVATION ECOSYSTEM CATEGORY ADOPTION IN SWEDEN Our most comfortable An elevated range, designed for the Drop 1: Exciting dual-can, experienc
Slide 17: Focused and intentional portfolio deployment
Focused and intentional portfolio deployment Strategic guardrails based on market maturity guide prioritised market portfolio deployment ↓ Operational growth model drives seamless end-to-end consumer journey with accelerating velocity 2. Maximise accessibility • Consistent availability on & offline
Slide 18: We are geared up to unlock MO full potential
We are geared up to unlock MO full potential ICONIC GLOBAL CONSUMER-LED AND INDUSTRY-LEADING BAT GLOBAL DISTRIBUTION BRAND EMERGING COMPETITIVE PORTFOLIO SCIENCE AND R&D POWER AND SCALE^ Brand Equity Score Rank* >10 years of experience 2x the retail reach of large-cap CPGs Highest number of patent O
Slide 19: Distinct roles of the categories in our growth strategy
Distinct roles of the categories in our growth strategy MODERN ORAL NC INHALATION VAPOUR (VP) HEATED PRODUCTS (HP) Today Today Today #1: Leading and fastest growing in the #1: Positive momentum and #2: Affordability leadership and fastest growing category* Premium leadership* Premium participation*
Slide 20: NC Inhalation: the counterpart to oral consumption of nicotine
NC Inhalation: the counterpart to oral consumption of nicotine NC INHALATION (VP+HP) ACTS AS THE PRIMARY STAGE MODERN ORAL RARELY USED IN ISOLATION, FOR SMOKERS TO TRANSITION TO SMOKELESS* EVEN AMONG ACTIVE USERS** Smokers switching to NCs Solus 10% c.80% ↓ c.20% ↑ Multi- NC INHALATION PRODUCT EXPER
Slide 21: NC Inhalation: sizeable, but concentrated and maturing
NC Inhalation: sizeable, but concentrated and maturing Industry* Vapour Heated Products Industry revenue in Industry revenue in c. 80% T10* c. 80% T10* c.£13bn 2025 Revenue US UK GER FRA SWI CAN ITA SPA ZA ROM JPN ITA POL ROM GER SWI GRE CZ SVK UKR U.S. white space 1.1pp YoY incidence growth £7bn ra
Slide 22: Vuse is the global leader in Vapour
Vuse is the global leader in Vapour LARGEST NEW CATEGORY WITH SUSTAINABLE WITH VUSE CLEAR LEADERSHIP* VALUE RETURNS** Investment in Vuse T10 markets 44.1% +1.7pp C.80% YTD 2026 vs. SPLY £ 1.5bn Gross Margin improvement (2025 vs. 2023) 2025 14.4% +7 pp Revenue 9.3% 5.7% Category Contribution Margin V
Slide 23: Vuse success is built on a powerful, distinctive mix
Vuse success is built on a powerful, distinctive mix HIGH QUALITY Premium connected ecosystem ULTRA ACROSS PLATFORMS Rechargeable Elevated sensorials NEW Easy-view liquid PRO ONE Device lock Simple personalisation Rechargeable Closed System High-quality food-grade flavour ingredients ** NEW Removabl
Slide 24: Our premium play with Ultra is working
Our premium play with Ultra is working UPLIFTING EQUITY* VALUE SHARE WITHIN Q1 2026 vs. Q1 2025 RECHARGEABLE CLOSED SYSTEM*** Launch: Premium +3pp 8.2% Jun 25 CAN Launch: Trusted +3pp 4.0% Jun 25 GER Launch: 2.4% Sep 25 FRA • Device: c.200 avg. price index to SOURCE OF BUSINESS** Launch: leading com
Slide 25: Further uplifting Ultra through flavours from real extracts
Further uplifting Ultra through flavours from real extracts* ULTRA TOBACCO EXPERIENCE ULTRA FLAVOUR EXPERIENCE * 3 345 * Competitor 1 Vuse New Mint Flavours “It goes in a different direction than sweet flavours. (Current) They really hit the nail on the head there” – Full Q3 26 OVERALL PRODUCT SATIS
Slide 26: Pro Mix delivers to flavour modulation consumer behaviour
Pro Mix delivers to flavour modulation consumer behaviour Multi-flavour modulation size - a top consumer need1 38% Stylish design + effortless UX FlavourMix technology 2 flavours + 1 mix mode Fast charging 8 mixable pods Pilot: Jan 27 Winning modulation moments unlocks premium differentiation 1BAT &
Slide 27: Vuse building trust and personal connection
Vuse building trust and personal connection CONNECTING WITH CONSUMERS THROUGH BUILDING TRUST THROUGH MEANINGFUL AND DIFFERENTIATED EXPERIENCES ALWAYS-ON ‘DONE RIGHT’ Trusted brand* +2.3pp (Q1 26 vs. Q4 25) UK +0.6pp GER Our commitment to responsible vaping is paramount *BAT & Third-Party Market Rese
Slide 28: Only applicable and targeted to adult tobacco/nicotine consumers
28 ONLY APPLICABLE AND TARGETED TO ADULT TOBACCO/NICOTINE CONSUMERS.
Slide 29: glo is almost a £1bn brand with improving economics
glo is almost a £1bn brand with improving economics LEADERSHIP IN AFFORDABILITY SEGMENT, WITH SUSTAINABLE EARLY INROADS INTO PREMIUM IN <1YR VALUE RETURNS Investment in glo T10 markets*** 2.6% c.80% 0.9bn JAP £ 2025 C. 50% ITA 1.9% Gross Margin improvement (2025 vs. 2023)*** Revenue 8.3% +10 pp POL
Slide 30: Upgraded glo mix for accelerating performance
Upgraded glo mix for accelerating performance VIRTO & RIVO PARTICIPATE IN PREMIUM COMPETITIVE & NEW DIFFERENTIATED CONSUMABLES NEO & VEO LEAD IN AFFORDABILITY NEW 100% of Hilo consumables evaluated at par or superior vs. closest competitor* * 3rd Party consumer research - Hilo Quant, Apr’25. Additio
Slide 31: Hyper Pro + Strengthening our play in the affordability segment
Hyper Pro + Strengthening our play in the affordability segment Quick start with autoactivation 5’ session length Connectivity Improved hygiene Combustibles users Superior vs. key competitor on taste liking, immediacy and key * feature ramp up speed Live in key Hyper markets *CPT (Quant) in JP and I
Slide 32: Hilo: Enhancing appeal to Combustibles & HP Premium
Hilo 2 Enhancing appeal to Combustibles & HP Premium SWITCH MODETM for combustible & HP users Auto start & 5 sec ramp up enhancing combustibles-like experience Enhanced connectivity for personalisation Combustibles Superior vs. key competitor users on device appeal, ease of use* Key Reach +8pp compe
Slide 33: Radiating brand expression for the glo ecosystem
Radiating brand expression for the glo ecosystem 33
Slide 34: 34
34
Slide 35: NC Inhalation consumers are increasingly driven by the experience rather than the platform
NC Inhalation consumers are increasingly driven by the experience rather than the platform INCREASING MULTI- DRIVEN BY THE SENSORY & USAGE EVIDENT IN VUSE ULTRA CATEGORY USAGE COMPLEMENTARY EXPERIENCE MORE TRIALIST PROFILE AMONG VP & HP USERS NATURES OF THE IMPORTANT THAN CATEGORIES DEVICE Multi-cat
Slide 36: We are actively pursuing this convergence opportunity
We are actively pursuing this convergence opportunity glo Infuse is one of our early proofs of concept Ritual, taste satisfaction & convenience in one frictionless device Enabled by proprietary flavour extraction technology Specifically targeted towards combustibles solus users as a first proof of c
Slide 37: Resonates with combustibles and NC Inhalation consumers
Resonates with combustibles and NC Inhalation consumers Great sensory experience Very high & convenience1 acceptability** Overall Appeal Great Taste 60% 83% Among combustibles users Ease of Use 59% 87% Among NC Inhalation users Source of business* Innovative Offer 57% 43% 91% Combustibles New Catego
Slide 38: Accelerating progress towards a Smokeless future
Updated Accelerating progress towards a Smokeless future Anchored in Velo and supported by NC Inhalation 1 BAT is shaping a diversified NC portfolio strategy Focused on growth and diversified for robust and durable financial returns Modern Oral is the focal point of our growth strategy, 2 with Velo
Slide 39: Our NC portfolio strategy forward
Our NC portfolio strategy forward Mid- NC revenue NC STRATEGY FORWARD Unlock category acceleration, teens YoY growth while building on our leadership to drive a growth inflection 2030 AMBITION* NC >30% contribution Combining forces in VP and HP to Global Smokeless deliver sustainable revenue growth
Slide 40: Video – New Categories
(Video — New Categories) all y
Slide 41: Appendices
Appendices capitis Markets ag 2026)
Slide 42: 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 43: 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
British American Tobacco p.l.c. — Investor Day (2026) on 6ix