British American Tobacco p l c : Presentation slides (7.7 mb) (BAT Tobacco Harm Reduction in Action Jefferies Reduced Risk Seminar 7May2024)

Tobacco Harm Reduction in Action

Dr. Elaine Round, Group Head of Life Sciences Jefferies Virtual Reduced Risk Seminar

7th May 2024

Cautionary Statement

This presentation contains certain forward-looking statements, including "forward-looking" statements made within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words or phrases such as "believe," "anticipate," "could," "may," "would," "should," "intend," "plan," "potential," "predict," "will," "expect," "estimate," "project," "positioned," "strategy," "outlook", "target" and similar expressions.

These include statements regarding our intentions, beliefs or current expectations concerning, amongst other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the economic and business circumstances occurring from time to time in the countries and markets in which the Group operates.

In particular, these forward-looking statements include, among other statements, statements regarding the Group's future financial performance, planned product launches and future regulatory developments, as well as certain statements on slides 7, 9, 13, 20, 25, 28 and 33.

All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors. It is believed that the expectations reflected in this document are reasonable but they may be affected by a wide range of variables that could cause actual results to differ materially from those currently anticipated.

Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are uncertainties related to the following: the impact of competition from illicit trade; the impact of adverse domestic or international legislation and regulation; the inability to develop, commercialise and deliver the Group's New Categories strategy; the impact of Supply chain disruptions; adverse litigation and dispute outcomes and the effect of such outcomes on the Group's financial condition; the impact of significant increases or structural changes in tobacco, nicotine and New Categories related taxes; translational and transactional foreign exchange rate exposure; changes or differences in domestic or international economic or political conditions; the ability to maintain credit ratings and to fund the business under the current capital structure; the impact of serious injury, illness or death in the workplace; adverse decisions by domestic or international regulatory bodies; changes in the market position, businesses, financial condition, results of operations or prospects of the Group; direct and indirect adverse impacts associated with Climate Change and the move towards a Circular Economy; and Cyber Security risks caused by the heightened cyber-threat landscape and increased digital interactions with consumers, and changes to regulation. Further details on the principal risks that may affect the Group can be found in the 'Group Principal Risks' section of the Strategic Report on pages 121 to 128 of the Annual Report on form 20-F. A summary of all the risk factors (including the principal risks) which are monitored by the Board through the Group's risk register is set out in the Additional Disclosures section under the heading 'Group Risk Factors' on pages 353 to 374 of the Annual Report on form 20-F.

Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser.

The forward-looking statements reflect knowledge and information available at the date of preparation of this document and the Group undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on such forward-looking statements.

No statement in this document is intended to be a profit forecast and no statement in this document should be interpreted to mean that earnings per share of BAT for the current or future financial years would necessarily match or exceed the historical published earnings per share of BAT.

Although financial materiality has been considered in the development of our Double Materiality Assessment (DMA), our DMA and any conclusions in this document as to the materiality or significance of sustainability or ESG matters do not imply that all topics discussed therein are financially material to our business taken as a whole, and such topics may not significantly alter the total mix of information available about our securities.

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We are BAT…

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Our global science and innovation ecosystem

PDC CoE*

Moncton, NB

R&D Centre

Owensboro

Innovation and

R&D Centre

Southampton

Innovation Centre

Trieste

Innovation and

R&D Centre

Shenzhen

Product Centre

Kuala Lumpur

BAT Centres	R&D Centre	R&D Centre	Product Centre
Winston-Salem	Porto Alegre	Malang

BAT Collaboration

* Product Development Collaboration / Centre of Excellence​

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A quantum leap in our capabilities driven by New Category Product transformation

Expertise	Pre-New Category Products
	Time

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Tobacco Harm Reduction (THR) in Action: Overview

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BAT's		Sweden:		Delivering		Challenging		Accelerating
vision for		The THR		THR globally		misbeliefs		towards
A Better		vanguard						Building a
TomorrowTM								Smokeless
								World

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BAT's vision for A Better TomorrowTM

Our Purpose

A Better Tomorrow™

Our Vision

Building a Smokeless World

Our Mission

To encourage smokers to Switch to Better

1. Better Tomorrow™

Building a	Switch
Smokeless World	to Better

Committed to 50% Smokeless^

revenue ambition by 2035

^ Smokeless - refers to non-combustibles, including Vapour products, Heated Products, Modern Oral pouches and Traditional Oral.	7

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Imagine a world with consumer inspired and profitable alternative tobacco and nicotine products… that had substantially reduced Public Health impact… and delivered value for all stakeholders… it's closer than you think

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Yes…it's called the Swedish Experience

Consumer

5.6% smoking rate

[EU 2040 Cancer plan: 5% = No smoking]

Prevalence of nicotine use:

Sweden = EU average

• Consumers
• Suppliers
• BAT

* Smokeless versus Factory made cigarettes (FMC)

Commercial

BAT

70% smokeless revenue

Revenue / mille* 1.5x

GM / mille* 1.3x

• Shareholders
• Retailers
• BAT

THR Evidence

• Consumers
• Tobacco Control
• Academics
• Regulators
• Public Health
• BAT

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If the mortality rates of Sweden could be applied across the EU,

3.4m lives would be saved over the next 10 years*

• www.smokefreesweden.org (Report: SAVING LIVES LIKE SWEDEN 02082023 WEB & Report: The Swedish Experience EN)

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