British American Tobacco P.l.c. · LSE:BATS
British American Tobacco P.l.c — Investor Day (March 2019)
29 slides from British American Tobacco P.l.c's investor day presentation, Mar 14, 2019
Slide 1: Investor Day | 14 March 2019
——EEE BRITISH AMERICAN TOBACCO Investor Day | 14 March 2019 * ae RANSFORMIN ACCELERATING DELIVERY —
Slide 2: Science Supporting Accelerated Delivery
SCIENCE SUPPORTING ACCELERATED DELIVERY DR. DAVID O’REILLY| DIRECTOR, SCIENTIFIC RESEARCH
Slide 3: 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 4: Important Information (continued)
Important Information Forward-looking Statements (continued) Additional information concerning these and other factors can be found in BAT’s filings with the U.S. Securities and Exchange Commission (“SEC”), including the Annual Report on Form 20-F to be filed on 15 March 2019 and Current Reports on
Slide 5: Dr. David O'Reilly, Director, Scientific Research
DR. DAVID O’REILLY DIRECTOR, SCIENTIFIC RESEARCH 30Yrs Industry Joined the Group in Management Board since experience January 1991 January 2012
Slide 6: Key messages
Key messages We are developing a strong scientific foundation to underpin our PRRP portfolio 1 and we are making good progress at closing any remaining gaps Science is powering our technology and product innovation. For example, we have used 2 science to develop a potentially game-changing vapour te
Slide 7: Our scientific research is extensive and underpins our broad portfolio of PRRPs
Our scientific research is extensive and underpins our broad portfolio of PRRPs1 Tobacco Conventional Traditional Vapour Modern Oral Heating Cigarettes Oral Products Products Products Products High Low Level of Toxicants 1 We use the term PRRPs to cover tobacco and nicotine products that, based on t
Slide 8: Current overall state of the science of our PRRP portfolio
Current overall state of the science of our PRRP portfolio THP | Our scientific evaluation to date suggest our THP product, glo has the potential to be significantly less risky than cigarettes and we are establishing more evidence to support this Vapour | Several independent bodies 1 have concluded
Slide 9: There is growing external support for PRRPs, especially vaping and oral
There is growing external support for PRRPs, especially vaping and oral – science on THP continues to be developed › Broader regulatory support for vaping and markets going from prohibition to regulation GOVERNMENT OF CANADA NEW ZEALAND MINISTRY OF HEALTH “Switching from tobacco cigarettes to vaping
Slide 10: Multiple scientific studies undertaken on all our PRRPs
Multiple scientific studies have been undertaken on all our PRRPs and we have made great progress to date VAPOUR THP ORAL Epidemiology n/a n/a Post-market surveillance In preparation Population risk reduction Consumer perception study System Science n/a Individual risk reduction Biomarker of effect
Slide 11: What is new in our THP science?
WHAT IS NEW IN OUR THP SCIENCE?
Slide 12: Good progress with our long-term clinical study on glo
We are making good progress with our long-term clinical study on glo PARTICIPANT COMPLIANCE STUDY DESIGN REPORTING POINTS IS KEY › Multi-centre 12-month clinical › Intense focus on participant › Will report after 90 days, 180 trial in the UK compliance days and 360 days › Compares continue to smoke,
Slide 13: Large dataset submitted to the Italian Health Ministry on glo
We have submitted a large dataset to the Italian Health Ministry on the reduced risk potential of glo to gain PRRP claims More than 4000 pages of documentation Studies include chemistry, in Will be supplemented with long- vitro toxicology, indoor air term clinical data on changes in 26 separate stud
Slide 14: First post-market surveillance study completed in Japan
We have completed our first post-market surveillance study in Japan that will help show the potential positive effects of glo on population health › Our population model can inform regulators of the potential reduction in the number of premature years of life lost because of the introduction of a PR
Slide 15: What is new in our vapour science?
WHAT IS NEW IN OUR VAPOUR SCIENCE?
Slide 16: Advance from coil-and-wick to distiller plate technology
A revolutionary advance from coil-and-wick to proprietary new-to-world distiller plate technology EXISTING COIL-AND-WICK TECHNOLOGY DISTILLER PLATE PROPRIETARY TECHNOLOGY › Absorbent wick › 10x larger surface area vs. best-in-class cotton › Electrical heating coil wick (ePen3) › Small surface area ›
Slide 17: Vype iSwitch with distiller plate technology improves satisfaction with less nicotine
Vype iSwitch with distiller plate technology gives improved consumer satisfaction with less nicotine, more aerosol and with much lower toxicants Vype ePen2 Vype ePen3 Vype iSwitch Gen1 nicotine salt + Gen2 nicotine salt + Tailored nicotine salt Core flavours + Premium flavour collections + Increased
Slide 18: Vype iSwitch - Unprecedented reductions in biological activity
Vype iSwitch - Unprecedented reductions in biological activity seen to date in our laboratory tests of vapour products Number of iSwitch ePen 3.0 lung-disease- ePen 2.0 Comparisons 1R6F relevant genes perturbed Air vs Reference Cigarette* (24 hrs) 5603 Air vs Vype iSwitch (24 hrs) 0 Vapour from Vype
Slide 19: First clinical study on Vype iSwitch confirms large reduction in toxicant exposures
First clinical study on Vype iSwitch confirms large reduction in toxicant exposures AVERAGE % REDUCTIONS FROM BASELINE › 14 BoEs for cigarette smoke toxicants measured › All BoEs significantly reduced for subjects switching to Vype % Change iSwitch* › In most cases BoEs reduced to levels similar to
Slide 20: Extensive experience in nicotine salts
We have extensive experience in nicotine salts and were the first to use this technology commercially in 2012 The use of nicotine salts in e-liquids delivers a more satisfying and intense vaping experience that is closer to smoking a conventional cigarette. This is important for some, but not all co
Slide 21: Nicotine delivery closer to that of a cigarette
Nicotine salts in conjunction with device and e-liquid improvements have allowed us to achieve nicotine delivery closer to that of a cigarette 18 Vype ePen3 Cigarette ad libitum Mean plasma nicotine concentration (ng/mL) 16 Vype ePen 3 (30 mg/mL; protonated) ad libitum 14 Vype ePen 3 (18 mg/mL; prot
Slide 22: Modern Oral
MODERN ORAL ACCELERATING DELIVERY ———i
Slide 23: Modern oral – potentially even lower risk than snus
Modern oral – potentially even lower risk than snus › Epok and Lyft have a fraction of the levels of toxicants than traditional Swedish snus › Snus has been shown to be reduced risk compared to smoking through long-term epidemiology › We have begun the science to inform additional consumer facing cl
Slide 24: Scientific Engagement and Communication
SCIENTIFIC ENGAGEMENT AND COMMUNICATION
Slide 25: Communicating to consumers with hundreds of science-based claims
We are communicating to consumers about the safety, quality and performance of our products with hundreds of science-based claims As at end of February 2019 VAPOUR THP 498 claims supported 286 claims supported by 23 scientific by 23 scientific publications publications +650% vs. Oct 17 +750% vs. Oct
Slide 26: Award-winning Science and Technology Report 2017/18
Our award-winning Science and Technology Report 2017/18 Leading the way in transparency and communication and building trust and credibility in our PRRPs
Slide 27: Making science a key component of our market launches
Making science a key component of our market launches Product launches – media interviews – roadshows – conference presentations – and other stakeholder engagements
Slide 28: Summary
Summary › Science is powering our Transforming Tobacco journey › We are near completion of the full testing programme for glo, with a long-term clinical study underway › We have been using our nicotine salts science for several years across our vapour portfolio › With Vype iSwitch we have shown that
Slide 29: Thank you
——EEE BRITISH AMERICAN TOBACCO Thank you. cw * ae RANSFORMING ACCELERATING DELIVERY —
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