British American Tobacco P.l.c. · LSE:BATS
British American Tobacco P.l.c — Investor Day (2026)
21 slides from British American Tobacco P.l.c's investor day presentation, Sep 29, 2026
Slide 1: Sustainable Shareholder Returns
Sustainable Shareholder Returns Johan Vandermeulen, Chief Operating Officer
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: Journey since last CMD
Journey since last CMD 2024 2025 2026 Targeted investment Progressive improvement Return to sustainable growth Key drivers Key drivers Key drivers • Targeted U.S. investment to • U.S. returned to growth • Strong U.S. revenue and APFO growth strengthen portfolio and execution • Strong Velo Plus deliv
Slide 5: Our growth algorithm delivering sustainable value
Our growth algorithm delivering sustainable value nced capital allocation Bala Returning to our growth algorithm from FY 26 transformation Fund eholder retu & shar rns • 3 – 5% sustainable revenue growth with 1 – 2% combustibles and mid-teens New Categories growth sh flow Qua lit grow y rev ca ** De
Slide 6: Playing to regional strengths to drive the algorithm
Playing to regional strengths to drive the algorithm Distinctive regions with clear priorities to drive growth Actively invest to strengthen combustibles and expand our Vapour and Fastest growing in total nicotine Modern Oral portfolios within the world's largest nicotine value pool Leading the Smok
Slide 7: Building Quality Growth momentum in combustibles
Building Quality Growth momentum in combustibles 2.1% 3.1% 2.7% 2.4% 2.5% 2.5% 1.0% 2.2% 0.8% HY 25 FY 25 HY 26 HY 25 FY 25 HY 26 HY 25 FY 25 HY 26 Revenue Gross profit* Contribution* Resilience driven by broad global footprint, strong portfolio and sharper execution Historical data presented at con
Slide 8: Building Quality Growth momentum in New Categories
Building Quality Growth momentum in New Categories 18.0% 13.0% 13.8% 12.0% 11.0% 10.6% 7.0% 2.4% 6.8% HY 25 FY 25 HY 26 HY 25 FY 25 HY 26 HY 25 FY 25 HY 26 Revenue Gross profit Contribution New Categories becoming an increasingly meaningful growth contributor Historical data based All figures presen
Slide 9: Multi-category approach to deliver sustainable revenue growth
Multi-category approach to deliver sustainable revenue growth New Categories Mid-teens New Categories • MO will drive Group revenue growth Fastest growing brand in fastest growing NC • Vapour driven by U.S. led growth Positive momentum and premiumisation 3 – 5% • HP reset for targeted growth Growing
Slide 10: Increasing gross profit across the portfolio
Increasing gross profit across the portfolio Closing NC gross margin gap over time** Combustibles continue to fund transformation 68.6% 68.9% 69.3% 68.1% • Supported by sharper execution and Revenue Growth CAGR Management 2022 – 2025 (%) New Categories becoming an increasingly 55.7% 58.4% meaningful
Slide 11: Accelerating New Categories contribution
Accelerating New Categories contribution New Category contribution 2021 – 2030E* (£bn) Continued growth expected as we leverage FY 21 FY 22 FY 23 FY 24 FY 25 FY 30E increasing scale benefits NC contribution margin (%) -46% -13% 0% 7% 12% >30% • Velo highly profitable** with fast payback period • Vus
Slide 12: Driving sustainable 4 – 6% APFO growth
Driving sustainable 4 – 6% APFO growth* Group APFO 2024 – 2026^ Operational excellence across regions and functions AI-enabled decisions Data-driven precision in marketing, pricing and investment choices Lower- end of Improving New Category mix 2030 Scale benefits, targeted investment and selective
Slide 13: Confident in sustainably delivering 5 – 8% adj. diluted EPS growth
Confident in sustainably delivering 5 – 8% adj. diluted EPS growth* Group EPS kickers 2021 – 2026** EPS growth drivers (%) Underlying APFO growth 4 – 6%* 2.2% EPS kicker accretion 1 – 2% • Sustainable share buy-back 1.5% • Net finance costs optimisation supported with 1.4% 1.3% debt reduction 1.1% >
Slide 14: Strong cash generation – confident in achieving our £50bn ambition by 2030
Strong cash generation – confident in achieving our £50bn ambition by 2030* Cumulative free cash flow generation 2024 – 2030* (£bn) Strong track record of cash generation >£50bn free cash flow • c.100% cash conversion for 6 consecutive years • 2025 impacted by CCAA payment £2.6bn • 2026 to reflect F
Slide 15: Balancing leverage and shareholder returns
Balancing leverage and shareholder returns Consistent deleveraging c.£36bn cash returned to shareholders** from FY 21 Adjusted net debt to adjusted EBITDA* (£bn) 6.9 6.6 3.00 5.9 6.3 2.89 5.1 2.61 2.0 4.9 2.44 2.55 to 2.5x 2021 2022 2023 2024 2025 2026 2021 2022 2023 2024 2025 2026 • Within our 2.0
Slide 16: Capital allocation priorities
Capital allocation priorities Cash generation Generate >£50bn free cash flow 2024 – 2030* Deliver business transformation Targeted investment in business transformation Optimise portfolio Continuously review our footprint and drive cash flows Target leverage corridor Sustainable share Assess bolt-on
Slide 17: Our incentives are aligned to delivering our growth algorithm
Our incentives are aligned to delivering our growth algorithm 2026 Senior Management Long-Term Incentive Plan Weighting Threshold Maximum Relative total shareholder return (Relative to performance of peer group, over a 3-year period) 20% Median Upper Quartile Adjusted diluted EPS CAGR 25% 3.5% 7.5%
Slide 18: Confident in sustainably delivering our 2030 algorithm
Confident in sustainably delivering our 2030 algorithm nced capital allocation Bala Key takeaways transformation Fund eholder retu & shar rns • 3 – 5% sustainable revenue growth with 1 – 2% combustibles and mid-teens New Categories growth sh flow Qua lit grow y rev ca ** De e 0 th enu re liv 3 3-5 e
Slide 19: Appendices
Appendices capitis Markets ag 2026)
Slide 20: Appendix: Non-GAAP financial measures
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 21: 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
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