British American Tobacco P.l.c. · LSE:BATS
British American Tobacco P.l.c — Debt Investor Presentation (2025)
15 slides from British American Tobacco P.l.c's debt investor presentation, 2025
Slide 1: Building a Smokeless World
Building a Smokeless World Fixed Income Update Call - Preliminary Results 2024 Soraya Benchikh – Chief Financial Officer | Neil Wadey – Group Head of Treasury
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 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 and Current Reports on Form 6-K, which may be obtain
Slide 4: Driving a sustainable transformation in 2024
Driving a sustainable transformation in 2024 ▪ Results delivered in line with guidance ▪ Investments driving Combustibles recovery in U.S. ▪ Continued robust delivery in AME and APMEA ▪ Progress towards a Smokeless world A Better ▪ Consumers of Smokeless* products up 3.6m to 29.1m Tomorrow ▪ Smokele
Slide 5: Targeted investment year in 2024
Targeted investment year in 2024 What we said What we delivered Goal: Strengthen our U.S. business FY24 Combustibles volume and value share recovery Action: Investments in our U.S. commercial plans: ▪ Led by premium ▪ Adjusted price indices and laddering strategy ▪ Previously announced commercial in
Slide 6: FY24 performance in line with expectations
FY24 performance in line with expectations Group New Category Profit from Diluted Earnings per Revenue Revenue Operations Share Reported £25,867m £3,432m £2,736m 136.0p FY23: FY23: FY23: FY23: £27,283m £3,347m (£15,751m) (646.6p) -5.2% +2.5% n/m^ n/m^ Adjusted +1.3%* +8.9%* +1.4%** +3.6%** Organic C
Slide 7: My areas of focus
My areas of focus 1 2 3 4 Fuelling Disciplined targeted Strengthen Balanced transformation capital deployment financial resilience capital allocation ▪ Drive Combustibles ▪ Target largest ▪ Strong balance ▪ Progressive dividend value NC profit pools sheet ▪ Sustainable share ▪ Quality growth ▪ Laser
Slide 8: 2025 Deployment Year priorities
2025 Deployment Year priorities ▪ Targeted roll out of innovations in all three New Categories ▪ Increasing NC returns on more focused investment A Better Tomorrow ▪ Drive value from Combustibles Building a Smokeless* Switch ▪ Further improvement in our U.S. delivery to Better World ▪ Amplify proact
Slide 9: Our 2026 sustainable growth algorithm supported by metrics
Our 2026 sustainable growth ance d capital allocat ion Bal algorithm supported by metrics d tran sformation & Fun reholder returns sha 1 CO bn low rev Qu S 0 op 5 hf ^ en al >£ as 30 u i tim 3- e ^ c 20 ty ow 5% n^ D sa isa eli gs by 2 gr * y vin e sio fre ver tion b ver ital 5 c.£2 30 th >90% cash
Slide 10: We support the Canadian CCAA proposed plans
We support the Canadian CCAA proposed plans P&L accounting treatment ▪ We continue to fully consolidate our Canadian business in accordance with IFRS ▪ Recognised £6.2bn provision for full settlement in our FY24 reported results, treated as an adjusting item in line with our accounting policies In o
Slide 11: Continued strong operating cash conversion
Continued strong operating cash conversion Strong Operating Cash Short Term Bond Maturity Leverage Reduced to 2.4x Conversion* Profile Adjusted net debt / £ in billions adjusted EBITDA** 100% 100% 101% 2.9 3.3 3.1 2.5^ 2.6 2.4 FY22 FY23 FY24 FY22 FY23 FY24 Due'25 Due'26 Due'27 £2.4bn Bi-laterals 9.5
Slide 12: Dynamic approach to capital allocation as we transform
Dynamic approach to capital allocation as we transform Cash generation Generate in excess of £50bn* Free Cash Flow** by 2030 Deliver business transformation Targeted investment in business transformation Optimise portfolio Continuously review our footprint and drive cash flows Progressive Within 2.0
Slide 13: Confident in delivering our mid-term sustainable Growth Algorithm in 2026
Confident in delivering our mid-term sustainable Growth Algorithm in 2026 2025 2026 Deployment Sustainable year mid-term growth Revenue Growth* c.1% 3-5% APFO (Adjusted for Canada) Growth** 1.5-2.5% 4-6% ▪ Improving U.S. financial performance ▪ Improving U.S. financial performance ▪ Further Velo gro
Slide 14: Q&A
Q&A Fixed Income Update Call - Preliminary Results 2024 Soraya Benchikh – Chief Financial Officer | Neil Wadey – Group Head of Treasury
Slide 15: 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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