British American Tobacco P.l.c. · LSE:BATS
British American Tobacco P.l.c — Investor Day (2024)
19 slides from British American Tobacco P.l.c's investor day presentation, Oct 25, 2024
Slide 1: Accelerating R&D & Innovation Ecosystem
Building a Smokeless World 7.83" Accelerating R&D & Innovation Ecosystem Zafar Khan, Group Operations Director
Slide 2: (Video – R&D Intro)
(Video — R&D Intro) Ww > q ” 2026
Slide 3: World-class innovation (an innovation obsessed mindset)
World-class innovation (an innovation obsessed mindset) A Transformed Compelling product Robust Innovation eco-system offers Pipeline • World Leading Partners • Consumer driven • Strong Patent Portfolio • Globally Diverse team technology breakthrough • Disruptive innovation • Control & Predictabilit
Slide 4: Opportunities identified for the 'step up'
Opportunities identified for the ‘step up’ Limited Siloed access to Gaps in Multi-Category External Innovation Internal Capability Approach Network 4
Slide 5: We are investing heavily in our future
Limited access to Siloed Gaps in external innovation multi-category internal capability network approach We are investing heavily in our future 2x £0.7 bn * A Better Tomorrow vs ‘21 Smokeless Innovation Spend Building a ** 21% Smokeless Switch World to Better Innovation Spend as a %age of Sustainabl
Slide 6: Established a unique & differentiated R&D eco-system
Limited access to Siloed Gaps in external innovation multi-category internal capability network approach Established a unique & differentiated R&D eco-system Fully Upgraded Infrastructure 3 Innovation Centres U.S. UK CN Strategic Partners +50 Development partners Open Innovation Partners 2 First mov
Slide 7: Leveraging our combined capabilities to deliver breakthrough innovation
Limited access to Siloed Gaps in external innovation multi-category internal capability network approach Leveraging our combined capabilities to deliver breakthrough innovation 7
Slide 8: Leveraging our combined capabilities to deliver breakthrough innovation
Limited access to Siloed Gaps in external innovation multi-category internal capability network approach Leveraging our combined capabilities to deliver breakthrough innovation • Advanced Electronics • Consumable Technology Excellence • Hardware, Software Co-Located & Power • Liquids & Flavours Team
Slide 9: (Video – R&D Partnerships)
(Video — R&D Partnerships) Ww > q ” 2026
Slide 10: A Global overhaul of in-house organisational capabilities
Limited access to Siloed Gaps in external innovation multi-category internal capability network approach A Global overhaul of in-house organisational capabilities 550 Major redeployment of skills Focused teams to address consumer preferences UK & Others Asia Employees +37 pp Tech “Centres of Excelle
Slide 11: Consumer preferences are at the heart of our innovations
Limited access to Siloed Gaps in external innovation multi-category internal capability network approach Consumer preferences are at the heart of our innovations ernal Ide Int at i on Added FMC-Like Modulation value ut O tio n s id e in I dea Product pipeline Everyday Conscious Shift escape Choice B
Slide 12: 'Control & predictability' of innovations process
Limited access to Siloed Gaps in external innovation multi-category internal capability network approach ‘Control & predictability’ of innovations process End-to-End Cross Functional End to End Oversight Synchronised rollouts Integration Cross-category Innovation Cross Category insights driving righ
Slide 13: The ecosystem has enabled a robust IP protected pipeline for future leadership
The ecosytem has enabled a robust IP protected pipeline for future leadership Strong IP Position Right Sized # of innovations ~1,400 Patent Families 200+ + ~900 Pipeline Innovations Supplier IP Access +40% ’23 vs. ‘21 4x vs. ’22 A strong ‘Menu card’ of technology options for multi-category pipeline
Slide 14: Consumer driven technology breakthroughs
Consumer driven technology breakthroughs Heatboost Cloud Control Modulated Modulation technology features Nic delivery tech Gel New FlavourMax Broad coverage Taste satisfaction of Nic & flavours Technology Technology consumer adoption journey 1st to introduce Child resistant Removable Conscious Choi
Slide 15: "Step change" in product portfolio in-market
“Step change” in product portfolio in-market Heated Products Vapour Modern Oral #1 in Affordable segment & #1 Globally superior* RCS offer #1 except USA superior* Portfolio Competitive in Premium in market Broadest range of strength & flavour Superior* User Interface & Tobacco Portfolio tailored to
Slide 16: We are truly "GLOBAL" in our Innovation Ecosystem
We are truly “GLOBAL” in our Innovation Ecosystem Our Strategic supplier We have significantly We are the only player with Relationships are a amplified our internal a history & presence across game changer capabilities all 3 categories • Augment innovation • Upgraded Infrastructure • Cross-Category
Slide 17: In Summary: our progress in numbers
In Summary: our progress in numbers Innovation Spend R&D Employees £700m 550 2x 2x +250 Tech hires Patent Families Launches in 2024 Innovation Pipeline 2,300 ~50 200+ +40% 2x 4x Innovation Spend: ‘23 vs. ‘21, R&D employees: ‘24 vs. ‘22, Patent Families ‘23 vs. ‘21, Launches: ‘24 vs. ‘23, Innovation
Slide 18: "A Better Tomorrow"
Ready to Deliver “A Better Tomorrow” 18
Slide 19: 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