British American Tobacco P.l.c. · LSE:BATS
British American Tobacco P.l.c — Investor Day (2024)
38 slides from British American Tobacco P.l.c's investor day presentation, Oct 25, 2024
Slide 1: Building a Smokeless World: Sustainable Future
Building a Smokeless World 7.83" Sustainable Future Kingsley Wheaton, Chief Corporate Officer
Slide 2: Video – Omni
Video – Omni
Slide 3: The course that we are on
The course that we are on 50m >50% A Better Tomorrow Building a Smokeless Switch World to Better Consumers of smokeless Revenues from Quality Growth Sustainable Future Dynamic Business products by 2030 smokeless products by 2035 Investing to deliver 26 million c.18% long-term value and build a Smoke
Slide 4: Delivering a sustainable future
Delivering a sustainable future “The external landscape that our brands and innovations land in will be just as important as the brands and innovations themselves” Science THR* Regulation * THR: Tobacco Harm Reduction. 4
Slide 5: Quit or Die vs robust THR science
And robust THR science That aims to inform a shift in the prevailing policy environment FROM TO A world where A world where… regulators only saw Quit or Die THR Is the most accepted as the tobacco tobacco control policy control option thesis 5
Slide 6: Our approach is founded on clear principles
Our approach is founded on clear principles Smart Regulatory regulation principles Based on robust Science and evidence evidence-based Consultative Product quality by nature & stewardship Delivers on policy Adult-only goals access Avoids unintended Effectively consequences enforceable
Slide 7: Evidence = Omni
Evidence = Omni TM The Scientific and Real-World Evidence of THR in Action
Slide 8: Building a Smokeless World: Advancing THR Science
Building a Smokeless World 7.83" Advancing THR Science Dr. James Murphy, Director, Research & Science
Slide 9: THR is at the core of our science agenda
THR is at the core of our science agenda THR Definition Application A product is harm THR = Scientifically reducing if it lowers substantiated Our vision is total tobacco-related smokeless products underpinned by mortality and morbidity Tobacco Harm x Smokers even though the use of Reduction (THR) c
Slide 10: Decades of scientific provenance and pedigree
Decades of scientific provenance and pedigree Group R&D by capability Group R&D by numbers 1,750 Scientists, Researchers & Engineers Chemistry Toxicology Consumer Use Behaviour Consumer Assessment Clinical Research 77 Nationalities 265 THR Publications 2012 - Present Disease Population Consumer Digi
Slide 11: Decades of scientific provenance and pedigree
Decades of scientific provenance and pedigree Our global science & innovation ecosystem Group R&D by qualification Innovation R&D Centre Centre Owensboro Southampton Innovation Centre Shenzhen R&D Centre R&D Centre Winston-Salem Southampton Product Centre 48% 27% Bachelors Masters Kuala Lumpur 12% I
Slide 12: Comprehensive scientific product stewardship
Comprehensive scientific product stewardship HP Vapour Oral Global Ingredients Robust product & materials vigilance & Post- market Aerosol surveillance - chemistry processes US A Toxicological evaluation time in market Discover Develop Deploy ………………………….…………………….. De-list Ensuring our products are d
Slide 13: Weight of evidence approach for scientific assessment
A weight of evidence approach for the scientific assessment of our Smokeless Products*† Oral Products Weight of importance in demonstrating reduced risk* status Product Individual Population Effect over time emissions exposure risk Harm 1. Combustion studies 4. Use behaviour 7. Clinical: individual
Slide 14: Extensive scientific substantiation
Extensive scientific substantiation*† (Study dates: 2017-2022) (Study dates: 2018-2023 (Study dates: 2019-2023) Emissions [HPHCs] vs Cigarette^ -90% to -95% -99% > -99% Toxicity vs Cigarette∞ -94% -97% -99% Exposure vs Smoking‡ -89% -99% -99% (glo exposure slightly higher than quitting) (VUSE exposu
Slide 15: Clinical assessment of individual risk
Clinical assessment of individual risk Biomarkers of Potential Harm Physiological process Disease endpoint Favourable change vs. smoking 8-epi-prostaglandin F2α Type III Oxidative stress/ DNA damage COPD, CVD & lung cancer White Blood Cell Count (WBC) Inflammation COPD & CVD Carbon Monoxide Oxyg
Slide 16: Continuum of risk for smokeless products
Decades of scientific assessment have enabled the placement of Smokeless Products on a model continuum of risk Heated Oral Tobacco Vapour Oral Nicotine Nicotine Products Products* Products Replacement Cessation Cigarettes Products Products Combustion Non-Combustion Highest Risk Lowest Risk Source: N
Slide 17: THR is having a significant impact globally
And THR is having a significant impact globally % difference Facilitated by: Smoking Prevalence 21% 15% 29% Heated Products JPN 2012 2022 Smoking Prevalence 17% 8% 53% Vapour Products NZL 2013 2022 Smoking Prevalence 18% 11% 39% Vapour (+Oral Nicotine Products) U.S. 2012 2023 Smoking Prevalence 19%
Slide 18: The Swedish experience shows the potential of THR
The Swedish experience shows the potential of THR Combustibles Public health outcomes prevalence 60 2022 grouped lung, trachea & bronchus & lip & oral cavity cancer deaths* SWE 15% 6% Age-standardised rate (world) per 100,000 2012 2023 40 40% 20 % difference Facilitated by: 0 Oral Tobacco Products/
Slide 19: Swedish experience: 3.5 million lives could be saved
The Swedish experience shows the potential of THR “If Swedish tobacco-related mortality rates were replicated in other countries, more than 3.5 million lives could be saved in the EU alone over the next decade” * * Human D., et al, Saving Lives Like Sweden. Smoke Free Sweden, 2023. Available at: htt
Slide 20: Encouragingly we see the THR needle moving
Encouragingly we see the THR needle moving “I’m fully aware of the “Fact: although nicotine is “Harm reduction is a misperceptions that are out addictive, it is relatively successful public health there and aren’t consistent harmless to health. strategy... with the known science. It is the many othe
Slide 21: But more stakeholder engagement is needed
But more stakeholder engagement is needed 21
Slide 22: The global amplification of Omni
The global amplification of Omni TM 22
Slide 23: Building a Smokeless World: Shaping the Regulatory Landscape
Building a Smokeless World 7.83" Shaping the Regulatory Landscape Flora Okerere, Group Head of Global Policy
Slide 24: Our approach is founded on clear principles
Our approach is founded on clear principles Smart Regulatory regulation principles Based on robust Science and evidence evidence-based Consultative Product quality by nature & stewardship Delivers on policy Adult-only goals access Avoids unintended Effectively consequences enforceable 24
Slide 25: And world-class regulatory capabilities
And world-class regulatory capabilities 1. 2. 3. 4. 5. Insights & Defined policies Evidenced-based Stakeholder Monitoring horizon planning & principles positions engagement progress Understand regulatory Maximise THR and Consolidated science and Tailored approach to Monitor global progress on trends
Slide 26: Represented in all key regulatory centres
Represented in all key regulatory centres >500 multi-disciplinary specialists across all key jurisdictions 5 global core competencies Scientific Fiscal & Business regulatory international Regulation Global policy communication engagement trade 26
Slide 27: Delivering ground-breaking external campaigns
Delivering ground-breaking external campaigns 27
Slide 28: Positive regulatory developments – Modern Oral
Positive regulatory developments – Modern Oral In 2020 there was no specific regulation for Modern Oral by 2024 13 countries 4 countries EU countries have developed have developed now under applicable Modern Oral technical product Industry code regulations standards 28
Slide 29: Positive regulatory developments – Vapour
Positive regulatory developments – Vapour Vapour now legal in 89% of tracked markets * 75% with specific regulations EU TPD legalised Chile & Malaysia vaping across 28 both legalised & members regulated Vapour in 2016 in 2023 *Based on internal analysis of 72 key markets. Our perspectives may not ne
Slide 30: With tangible population-level outcomes (New Zealand)
With tangible population-level outcomes Progressive regulation. NZA Lowest-ever smoking rates. % daily smoking vs vaping Progressive vape regulations: 17.9% 16.8% Flavours | Communication | Nicotine Limits 16.0% 14.7% 11.9% 10.9% Smoking down c.40% since 2019 8.2% Smoking incidence from 18% to 8% 4.
Slide 31: Contrasting sharply with a 'prohibition' approach (Australia)
Contrasting sharply with a ‘prohibition’ approach Prescription-only. Stalled smoking decline and thriving illicit market. AUS 15.1% 14.7% • Smoking decline stalls: 13.7% 11.7% 11.8% 12% incidence for last 5 years 10.9% 12.9% 11.9% 11.2% 11.6% • 90% of Australia’s vapers buy illegal 9.2% 8.3% 1.3 mil
Slide 32: Many millions of smokers lack access to legal alternatives
Yet many millions of smokers do not have access to legal smokeless alternatives An estimated THR-based regulation 200 million is an opportunity for these markets to smokers effectively address smoking rates in a Live in countries where New Category products responsible and are either banned or curre
Slide 33: Proactively addressing societal concerns
Proactively addressing societal concerns Adult-targeted flavours Deploying digital age-verification solutions in-store and on-line Accidental access prevention Environmental Underage Concerns Access Age-verified connected platforms Rechargeable / removable battery Embedding security and environmenta
Slide 34: Bringing it all together
Bringing it all together Accelerating Science Evidence THR Acceptance Underpinned Based Scientific and Real-World Evidence of THR in Action Thought Progressive Sustainable Leading Regulation Future 34
Slide 35: A big step forward in our approach
A big step forward in our approach Scientific and Real-World Evidence of THR in Action
Slide 36: Omni: So what is it?
So what is it? A world-first Our go-to authority for Tobacco Harm Reduction World-class objective science, OmniTM both BAT & 3rd Party Forward Engaging head on with the Big Questions in tobacco and nicotine Thinking for a Smokeless An open invitation to dialogue World Curated in a document and an on
Slide 37: Video – Omni launch
Video – Omni launch
Slide 38: 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
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