British American Tobacco P.l.c. · LSE:BATS
British American Tobacco P.l.c — Investor Day (2026)
38 slides from British American Tobacco P.l.c's investor day presentation, Sep 29, 2026
Slide 1: Transforming and Winning in the U.S.
Transforming and Winning in the U.S. David Waterfield, President Reynolds American
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: The pace of change is accelerating
The pace of change is accelerating Reynolds plays a pivotal role in delivering A Better TomorrowTM in the U.S. 4
Slide 5: Reynolds American is the cornerstone of growth for BAT
Reynolds American is the cornerstone of growth for BAT £2.5bn Investment committed by 2030* 2,000+ New American jobs* (direct & indirect) Investing in the U.S. economy by building next-generation capabilities and creating thousands of new jobs to support our growth *Investment period 2024 – 2030 5
Slide 6: Moving from uncertainty to opportunity
Moving from uncertainty to opportunity 2024 CMD – U.S. landscape 2026 CMD – U.S. landscape 1 Combustibles industry accelerated level of decline 1 Moderate industry decline YTD 2026 Reynolds back to combustibles revenue & profit 2 Reynolds combustibles performance stabilisation 2 growth 3 Menthol ban
Slide 7: U.S. market opportunity overview
U.S. market opportunity overview U.S. market context Reynolds potential U.S. is the largest growing Over 60m adult U.S. Multi-category portfolio Leading position & nicotine revenue pool consumers using nicotine positioned to deliver value growing adult nicotine globally* products** growth consumer s
Slide 8: U.S. nicotine market in growth
U.S. nicotine market in growth Total U.S. nicotine industry volumes* 2025 U.S. estimated nicotine revenue pool 408 417 2023 – 2025 £42bn +2.3% CAGR +6.4% vs FY 24 CAGR 2025 – 2030E +4.3% 383 vs FY 23 +4.3% +13.0% Vapour SMOKELESS Vapour 218 257 278 £10bn Oral +18.1% +8.1% vs FY 23 vs FY 24 Combustib
Slide 9: The U.S. New Category opportunity
The U.S. New Category opportunity The opportunity today Momentum building The size of the prize by 2030 2025 U.S. developing segments revenue U.S. developing segments revenue pool pool estimates estimates projected to grow in value Evolving & more efficient £12bn regulatory process £17bn – £25bn Eff
Slide 10: The U.S. New Category opportunity
The U.S. New Category opportunity The opportunity today Integrated capabilities The size of the prize by 2030 2025 U.S. developing segments revenue U.S. developing segments revenue pool pool estimates estimates projected to grow in value S. C a p a b il i t i e £12bn U. s £17bn – £25bn U.S. Scale, T
Slide 11: Nicotine consumer migration to New Categories
Nicotine consumer migration to New Categories U.S. adult nicotine consumer migration 2017 2026 MO 16m Modern 8m Oral Vapour 31m 50m Cigarettes Cigarettes 19m 22m Traditional Vapour Oral 15m Traditional Oral New nicotine alternatives driving c.20m reduction in smokers over last 9 years Source: Adult
Slide 12: Fast-paced consumer transformation continues
Fast-paced consumer transformation continues Consumer migration to New Categories Traditional Categories Solus Traditional + New Categories New Categories Solus 54% 26% 20% 2022 46% 38% 35% 27% 2024 62% 32% 37% 31% 2026 Projection 68% Nicotine consumer migration to New Categories has accelerated in
Slide 13: Nicotine consumer migration across the U.S.
Nicotine consumer migration across the U.S. New Category volume proportion of total nicotine consumption by state Reynolds vs. Industry 5% to 19% 20% to 39% 40%+ 10 Behind 5 In Line 35 Outpacing (67% of NC national volume) Industry Reynolds c.24% weighted New Categories c.27% weighted New Categories
Slide 14: Established multi-category portfolio for growth
Established multi-category portfolio for growth U.S. adult nicotine consumer (ANC) trends Reynolds multi-category volume share 34.0% FY 25 U.S. nicotine consumers interacting or migrated to New Categories* 65% +18pp vs. 2022 +119bps Reynolds portfolio total nicotine share YTD AUG 26 vs. FY 25 9.2% F
Slide 15: Established multi-category portfolio for growth
Established multi-category portfolio for growth U.S. adult nicotine consumer (ANC) trends Reynolds multi-category volume share 34.0% FY 25 U.S. nicotine consumers interacting or migrated to New Categories* 65% +18pp vs. 2022 +119bps Reynolds portfolio total nicotine share YTD AUG 26 vs. FY 25 9.2% F
Slide 16: Modern Oral category growth drivers
Modern Oral category growth drivers Growing consumer base Growing daily consumption Growing industry volumes 4.3 Industry Revenue Pool £2.9 16.3m Average Daily Consumption (bn) £2.3 3.7 £1.7 3.0 £1.2 14.4m 2.4 £0.5 2.0 6.6 6.8 12.0m 9.1 6.0 MO Industry 6.7 5.6 (Pouches bn) 9.7m +26% 4.3 4.5 7.7m +46
Slide 17: Velo Plus is the fastest growing brand in the category
Velo Plus is the fastest growing brand in the category Volume +158% YTD AUG 26 vs. SPLY Volume share +11.1pp Velo Plus 2026 growth metrics YTD AUG 26 vs. FY 25 Consumer growth 2x XX% 30.5% Q2 26 Insights 93% Price index to WAP 3.4m → 6.2m (+15pp vs Q2 25) Source: Kantar Q1 26 vs. Q1 25 | Active cons
Slide 18: Velo Plus is the fastest growing brand in the category
Velo Plus is the fastest growing brand in the category Volume +158% YTD AUG 26 vs. SPLY Volume share +11.1pp Total Oral leadership achieved in U.S. YTD AUG 26 vs. FY 25 volume share (%) 39.1 30.5% Comp. 1 # 1 Q2 26 Insights 93% Price index to WAP (+15pp vs Q2 25) 36.4 34.0 33.8 +71% Trialist repeat
Slide 19: Velo Plus is the fastest growing brand in the category
Velo Plus is the fastest growing brand in the category Volume +158% YTD AUG 26 vs. SPLY Volume share +11.1pp VELO MAX launched in September 2026 YTD AUG 26 vs. FY 25 30.5% Q2 26 Insights 93% Price index to WAP (+15pp vs Q2 25) Nicotine levels: 8mg & 12mg +71% Trialist repeat 4 Flavours: 24.7% purcha
Slide 20: Modern Oral benefits to the Tobacco Harm Reduction mission
Modern Oral benefits to the Tobacco Harm Reduction*† mission Tobacco Harm Reduction – Velo insights Amplifying the THR agenda Stated behaviour from adult cigarette consumers who recently purchased Velo Accelerating education on Smokeless products and THR amplifying influential stakeholders After 6 m
Slide 21: U.S. nicotine regulatory landscape evolving positively
U.S. nicotine regulatory landscape evolving positively Creates a more level playing field in the U.S. Promotes a regulated marketplace Preventing irresponsible marketing behaviours & illicit products 21
Slide 22: Vapour disposables enforcement gaining traction in U.S.
Vapour disposables enforcement gaining traction in U.S. Disposables enforcement actions by authorities 48% of weighted legal industry volume coverage FDA on State regulation against illegal disposables Seizures and raids implemented by law enforcement totaling more than U$250m YTD 2026 50m+ media im
Slide 23: Vapour disposables enforcement gaining traction in U.S.
Vapour disposables enforcement gaining traction in U.S. 2.1m 4.7m $175m+ 22 states largest maritime seizure of illegal Vapour directory / enforcement laws enacted products seized in DOJ nationwide sweep units in largest-ever federal seizure (Operation Red Mist) Jan 25 Mar 25 Sep 25 May 26 July 26 1
Slide 24: Vapour disposables enforcement gaining traction in U.S.
Vapour disposables enforcement gaining traction in U.S. Disposables consumer trends results* Vuse outperforming industry** # Disposables consumers Volume (m) Vapour RCS Vol Average weekly sales (m) 11.0 7.0 YTD AUG 26 vs SPLY 19.8 19.3 19.1 18.8 18.8 18.9 Industry RCS 18.2 18.3 Industry 10.0 6.5 (Tr
Slide 25: Vuse fastest growing legal brand in the U.S.
Vuse fastest growing legal brand in the U.S. Vuse market value share leadership* Flavours portfolio expansion Flavour range launch Responsibility campaign 50.4% 51.8% 56.8% Proactive retailer program & distribution to Jan 25 Aug 25 Aug 26 ensure 21+ access compliance alongside campaign Consistent va
Slide 26: Strong pipeline of innovation to roll-out in next 3 years
Strong pipeline of innovation to roll-out in next 3 years Today* Future 30.5% Record volume share 80% Share of industry growth Flavours Formats Limited Editions Fuel a consistent U.S. innovation cadence through strategic adoption of globally commercialised innovations 56.8% Record value share 39 sta
Slide 27: Combustibles business delivering despite adverse market conditions
Combustibles business delivering despite adverse market conditions INDUSTRY DYNAMICS H1 26 REYNOLDS DELIVERY Industry decline is moderating in 2026… Combustibles volume TOTAL INDUSTRY TOTAL INDUSTRY vs SPLY EXCL. DEEP DISCOUNT -4.9% -9.5% -7.6% -5.2% +2.4pp +3.2pp vs SPLY +1.5pp vs SPLY H1 26 DOWNTR
Slide 28: Combustibles discounting activity intensified in 2026 by all players
Combustibles discounting activity intensified in 2026 by all players Combustibles offtake share Competitors discounting initiatives intensified Aug 26 vs. Jan 26 38.4 38.4 Excl Reynolds Operating Segment Share 38.2 38.2 38.3 38.2 38.2 DD +0.54pp 38.1 32.8 37.9 Reynolds Total Share 32.6 32.6 Total +0
Slide 29: Combustibles focus on sustainable value delivery remains key
Combustibles focus on sustainable value delivery remains key Long term value sustainability Premium Ladder Options Reasons to believe • Strong, geographically spread combustibles portfolio RGM & Trade Capabilities • International footprint to enhance productivity • RGM capabilities to deploy multi-
Slide 30: Transforming and delivering sustainable value
Transforming and delivering sustainable value Smokeless revenue evolution Deliver sustainable 22.7% value H1 26 19.6% Role of category 16.8% Create incremental value £2.3 £2.0 Create incremental value (Leverage disposables enforcement) 2022 2025 2026 Strong progress on driving smokeless revenue grow
Slide 31: Transforming and delivering sustainable value
Transforming and delivering sustainable value Gross margin evolution Deliver sustainable value Gross margin Role of category Create incremental 75% – 78% value 73% 68% Create incremental 2022 2025 2030E value (Leverage disposables enforcement) Continued gross margin improvement A proven & sustainabl
Slide 32: Transforming and delivering sustainable value
Transforming and delivering sustainable value Gross margin evolution Deliver sustainable value New Categories Gross margin Total Business Role of category Traditional Categories Create incremental 75% – 74% 78% value 73% 70% 68% 68% 47% Create incremental 2022 2025 2030E value (Leverage disposables
Slide 33: Winning culture driven by our people
Winning culture driven by our people External talent & new Strong early career capability acquisition An Engaged Workforce pipeline 90 Sr. Director 2026 Global eNPS – June 2026 >20 Graduates % or above How likely is it 43 external * that you would and Interns hires recommend BAT 2023 – 2025 as a goo
Slide 34: Reynolds American best positioned to win in the U.S.
Reynolds American best positioned to win in the U.S. Integrated capabilities Winning brands The size of the prize by 2030 U.S. developing segments revenue pool estimates projected to grow in value S. Capabilitie U. s £17bn – £25bn U.S. Scale, Trade Coverage & Contracts Digital Capabilities Operation
Slide 35: Reynolds Operations Center
Reynolds Operations Center Tobaccoville, North Carolina Shorefair Taylor Brothers Clarksville, TN
Slide 36: Appendices
Appendices capitis Markets ag 2026)
Slide 37: 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 38: 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