2023巴克莱全球必需消费品会议（演示资料）-英

A

Purposeful

and

ProfitablePathway

toA

Better

TomorrowTMOur

New

Category

Journey1Classified-ConfidentialImportant

InformationThe

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

that

is

a

citizen

or

resident

or

located

in

any

jurisdiction

where

suchdistribution,publication,availability

oruse

wouldbecontrary

tolaworregulationorwhichwouldrequireanyregistrationorlicensing

withinsuchjurisdiction.References

in

this

presentation

to

‘British

American

Tobacco’,

‘BAT’,

‘Group’,

‘we’,

‘us’

and

‘our’

when

denoting

opinion

refer

to

British

American

Tobacco

p.l.c.

and

whendenotingbusiness

activity

refertoBritish

AmericanTobaccoGroupoperatingcompanies,

collectivelyorindividually

asthecase

maybe.Theinformation

containedinthis

presentation

does

notpurporttobe

comprehensiveandhas

notbeenindependently

verified.Certain

industry

andmarketdatacontainedinthis

presentation

has

come

from

third

party

sources.

Third

party

publications,

studies

and

surveys

generally

state

that

the

data

contained

therein

have

been

obtained

fromsourcesbelievedtobe

reliable,butthatthereisno

guaranteeof

accuracy

orcompleteness

ofsuchdata.Forward-looking

StatementsThis

presentation

does

not

constitute

an

invitation

to

underwrite,

subscribe

for,

or

otherwise

acquire

or

dispose

of

any

BAT

shares

or

other

securities.

This

presentationcontains

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"

andsimilar

expressions.

These

include

statements

regardingour

intentions,beliefs

or

current

expectations

concerning,

amongst

other

things,

our

results

of

operations,

financial

condition,

liquidity,

prospects,

growth,

strategies

and

the

economic

andbusiness

circumstances

occurring

fromtimetotime

inthecountries

andmarketsinwhichtheBritishAmericanTobaccoGroup

(the“Group”)operates.All

such

forward-looking

statements

involve

estimates

and

assumptions

that

are

subject

to

risks,

uncertainties

and

other

factors.

It

is

believed

that

the

expectations

reflectedinthispresentationare

reasonable

buttheymaybe

affected

bya

wide

rangeofvariables

thatcould

cause

actualresultstodiffermaterially

fromthose

currently

anticipated.Inparticular,among

otherstatements:

certain

statements

onslides

5,

6,

17,27and33.Amongthekey

factors

thatcould

causeactualresultstodiffermaterially

from

thoseprojectedintheforward-lookingstatementsareuncertainties

related

tothefollowing:theimpact

of

competition

from

illicit

trade;

the

impact

of

adverse

domestic

or

international

legislation

and

regulation;

the

inability

to

develop,

commercialise

and

deliver

theGroup's

New

Categories

strategy;

adverse

litigation

and

dispute

outcomes

and

the

effect

of

such

outcomes

on

the

Group's

financial

condition;

the

impact

of

significantincreases

or

structural

changes

in

tobacco,

nicotine

and

New

Categories

related

taxes;

translational

and

transactional

foreign

exchange

rate

exposure;

changes

or

differencesin

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

ofserious

injury,

illness

or

death

in

the

workplace;

adverse

decisions

by

domestic

or

international

regulatory

bodies;

changes

in

the

market

position,

businesses,

financialcondition,

results

of

operations

or

prospects

of

the

Group;

direct

or

indirect

adverse

impacts

associated

with

Climate

Change

and

the

move

towards

a

Circular

Economy;

andCyberSecurity

causedbythe

heightenedcyber-threatlandscape,theincreaseddigitalinteractionswith

consumers

andchangestoregulationPast

performance

is

no

guide

to

future

performance

and

persons

needing

advice

should

consult

an

independent

financial

adviser.

The

forward-looking

statements

reflectknowledge

and

information

available

at

the

date

of

preparation

of

this

presentation

and

BAT

undertakes

no

obligation

to

update

or

revise

these

forward-looking

statements,whetherasaresult

ofnewinformation,

futureeventsorotherwise.

Readersarecautioned

nottoplaceunduerelianceonsuchforward-looking

statements.2Classified-ConfidentialImportant

InformationForward-looking

Statements(continued)Additionalinformation

concerningtheseandotherfactors

canbe

foundinBAT’sfilingswith

theU.S.Securities

andExchangeCommission(“SEC”),includingthe

AnnualReporton

Form

20-F

and

Current

Reports

on

Form

6-K,

which

may

be

obtained

free

of

charge

at

the

SEC’s

website,

,

and

BAT’s

Annual

Reports,

which

may

beobtainedfreeofchargefromtheBritish

AmericanTobaccowebsite

.Additional

InformationAll

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.

GAAPand

constitute

the

primary

financial

statements

or

financial

records

of

the

U.S.

business/Reynolds.

This

financial

information

is

then

converted

to

International

FinancialReporting

Standards

as

issued

by

the

IASB

for

the

purpose

of

consolidation

within

the

results

of

the

BAT

Group.

To

the

extent

any

such

financial

information

provided

in

thispresentationrelatestothe

U.S.orReynolds

itisprovidedasanexplanation

of,orsupplement

to,Reynolds’

primaryU.S.GAAP

basedfinancialstatements

andinformation.Our

Vapour

product

Vuse

(includingAlto,

Solo,

Ciro

and

Vibe),

and

certain

oral

products

including

Velo,

Grizzly,

Kodiak,

and

Camel

Snus,

which

are

sold

in

the

US,

are

subject

totheFoodandDrug

Administration(“FDA”)regulation

andnoreduced-riskclaims

will

bemade

tothese

products

without

agency

clearance.NoProfit

or

Earnings

Per

Share

ForecastsNostatementinthis

presentation

is

intendedtobeaprofitforecastandnostatementin

this

presentationshould

beinterpreted

tomean

thatearningspershare

ofBAT

forthecurrent

orfuturefinancialyearswouldnecessarily

matchorexceedthehistoricalpublished

earningspershare

ofBAT.AudienceThe

material

in

this

presentation

is

provided

for

the

purpose

of

giving

information

about

BAT

and

its

subsidiaries

to

investors

only

and

is

not

intended

for

general

consumers.BAT,

its

directors,

officers,

employees,

agents

or

advisers

do

notaccept

or

assumeresponsibility

to

any

other

person

to

whom

this

material

is

shown

or

into

whosehands

it

maycome

and

any

such

responsibility

or

liability

is

expressly

disclaimed.

The

material

in

this

presentation

is

not

provided

for

product

advertising,

promotional

or

marketingpurposes.

This

material

does

notconstitute

and

should

notbe

construed

as

constituting

an

offer

to

sell,

ora

solicitation

of

an

offer

tobuy,

any

of

our

products.

Our

products

aresoldonlyincompliancewith

the

lawsofthe

particular

jurisdictionsinwhichthey

are

sold.3Classified-ConfidentialToday’s

Themes010203A

Multi-TobaccoHarmNew

CategoriesCategoryPortfolio

isessentialareReductionis

a

journeyvalue

accretive4Classified-ConfidentialOur

purpose

is

to

build……through

reducing

the

health

impact

of

ourbusiness

by

offering

a

greater

choice

of

enjoyableand

less

risky

products

for

our

consumers*†*Based

on

the

weight

ofevidence

andassuming

acomplete

switchfrom

cigarettesmoking.

Theseproductsarenotrisk

freeandare

addictive.†Our

vapour

productVuse(including

Alto,Solo,

Ciro

and

Vibe),

andcertain

products,including

Velo,

Grizzly,

Kodiak,andCamel

Snus,which

aresold

in

the

U.S.,aresubjecttoFDA

regulation

andnoreduced-risk

claims

will

bemadeastothese

pCr

olads

sui

fcietds-wCiotnhfoi

duetntaiaglencyclearance.5Our

Objective:Delivering

value

for

all

of

our

stakeholders6Classified-Confidential…and

we’ve

only

just

begun100m

of

1.1bn7Global

consumernumbers

forNewCategories

and

SmokersatanIndustryLevelSource:Statista

2023,KantarIncidence

&TrackStudiesClassified-ConfidentialIncreasingly

a

global

phenomenon~60%~30%BRAMEXTUROf

T-50

marketsfully

open

to

NewCategoriesCountries

restrict1

or

more

NewCategoriesKey

globalmarkets

remaininaccessible8Source:BAT

Data

ofcurrentmarketregulations

H1

2023Classified-ConfidentialMarkets

and

consumers

are

not

homogeneousAccessible

NCmarketsAccess

restrictedtooneormoreNCsHighlyrestrictedorinaccessible

toNCsFLAVOURPREFERENCESSATISFACTIONIDENTITYVALUEHARMREDUCTIONCONVENIENCEFundamental

DriversOccasions&

ConsumptionRegulation

&

AccessNo

single

solution

is

capable

of

meeting

all

preferences9Classified-ConfidentialSource:BAT

data

&Proprietary

Consumer

ResearchSo…

we

are

investing

now

in

a

Multi-Category

future10Classified-ConfidentialBeliefs

toChallenge11Beliefs

to

Challenge12

3

4There

is

aTHP

attracts

theTHP

encouragesmore

switchingthan

vapingModern

Oral

is

aScandinavianphenomenon‘one

size

fits

all’solutionmost

consumers56

7

8Nicotine

is

aNew

Categories

(NCs)are

often

a

gatewayto

smokingPoly-usersNCs

are

used

equallysubstantial

cause

ofdisease

from

smokingtend

to

smokejust

as

muchacross

cohorts9

10NCs

are

lessprofitableIndustry

value

isdeclining

withcigarette

sales12Classified-ConfidentialTheme

1:

Multi-Category12

3

4There

is

aTHP

attracts

theTHP

encouragesmore

switchingthan

vapingModern

Oral

is

aScandinavianphenomenon‘one

size

fits

all’solutionmost

consumers56

7

8Nicotine

is

aNew

Categories

(NCs)are

often

a

gatewayto

smokingPoly-usersNCs

are

used

equallysubstantial

cause

ofdisease

from

smokingtend

to

smokejust

as

muchacross

cohorts9

10NCs

are

lessprofitableIndustry

value

isdeclining

withcigarette

sales13Classified-ConfidentialBelief

#1

There

is

a

‘one

size

fits

all’

solution>80%of

THP>70%of

Vapour60%FACT80%50%70%THP

and

Vapour60%40%correlate50%inversely

to30%40%Weighted30%20%20%Average

Tar10%10%levels0%0%8.5mg8.5mgAverageWeightedTar

perCigaretteAverageWeightedTar

perCigarette*FMC:FactoryMadeCigarettes14Source:KantarIncidence

Study

2022,Retail

Audit(suppliers

different

bymarket),BATinternal

informationBelgium,

Bulgaria,

Canada,

Colombia,

Croatia,Czech

Republic,

Denmark,France,

Germany,Greece,HunCglaarsy

,sIitfailey,dJa-paCno,

Knafziadkehnsttaina,

lMalaysia,

Mexico,

Netherlands,NewZealand,

Poland,Portugal,Russia,Saudi

Arabia,

Spain,

SouthKorea,Sweden,Switzerland,UK,

Ukraine,USABelief

#2

THP

attracts

the

most

consumers62#TotalAdult

Users*(Mn)54FACT+3643Vapour

is

the

biggestcontributor

toconsumer

growthand

accelerating4013342611+242110177102220182019202020212022VapourTHPMOSource:KantarIncidence

&TrackStudies2022*Adultusersbasedon20YearsofAge+

inUSA.18+inallother

marketsT42Markets:Algeria,Argentina,

Australia,

Bangladesh,

Belgium,Brazil,Bulgaria,

Canada,

Chile,

Colombia,

CzechRepublic,

Denmark,Egypt,

France,

Germany,Greece,Hungary,

Indonesia,Italy,Japan,

Kazakhstan,Malaysia,

Mexico,

Morocco,Netherlands,NewZealand,

Nigeria,Pakistan,

Poland,Romania,Saudi

Arabia,

SouthAfrica,

SouthKorea,Spain,

Sweden,Switzerland,Taiwan,

Turkey,UK,

Ukraine,USA,

VietnamClassified-Confidential15Belief

#3

THP

encourages

more

switching

than

vapingNC

Consumers:StillSmoking

DailyStopped

Smoking

Daily39%61%37%FACT63%Vapour

and

THP*THPVapourare

equally

effectiveat

encouraging54%65%35%66%71%smokers

to

switch34%29%46%VapourVapourTHPVapourTHP65%64%36%61%63%37%35%39%THPVapourTHP16Source:KantarIncidence

&TrackStudies2022*Vapour

includes

Disposables

andrechargeable

closed

system

onlyClassified-ConfidentialBelief

#4

Modern

Oral

is

a

Scandinavian

phenomenonMO

Revenue

Contribution1.5FACT22%1.1MO

will

havea

critical21%positive

role

to

play

as0.8market

expansion19%53%and

the

US

accelerategrowth52%50%25%27%31%202120222023

EstNordicsUSARoW17MOIndustryRevenue,£bnSource:KantarIncidence

Study

2022,BAT

OutlookClassified-ConfidentialImplication

112

3

4THP

&

Vapour

correlateinversely

to

WeightedAverage

Tar

levelsVapour

is

the

biggestcontributor

toVapour

&

THP

areequally

effective

atencouragingModern

Oral

willhavea

criticalconsumer

growthand

acceleratingpositive

role

to

playsmokers

to

switchA

Multi-Category

Portfolio

is

Essentialto

Deliver

our

Purpose

&

IndustryTransition18Classified-ConfidentialTheme

2:

THR12

3

4THP

&

Vapour

correlateinversely

to

WeightedAverage

Tar

levelsVapour

is

the

biggestcontributor

toVapour

&

THP

areequally

effective

atencouragingModern

Oral

willhavea

criticalconsumer

growthand

acceleratingpositive

role

to

playsmokers

to

switch56

7

8Nicotine

is

aNew

Categories

(NCs)are

often

a

gatewayto

smokingPoly-usersNCs

are

used

equallysubstantial

cause

ofdisease

from

smokingtend

to

smokejust

as

muchacross

cohorts9

10NCs

are

lessprofitableIndustry

value

isdeclining

withcigarette

sales19Classified-ConfidentialBelief

#5

Nicotine

is

a

substantial

cause

of

diseasefrom

smokingIt’s

the

other

chemical

compounds

intobacco,

and

inthe

smoke

created

bysetting

tobaccoon

fire,

that

directly

andFACTprimarily

causethe

illnessanddeath,not

the

nicotineDR.

SCOTT

GOTTLIEBUSFDA

COMMISSIONER

(JULY

2017)Most

of

the

harm

fromsmoking

is

caused

byproducts

of

combustion,not

nicotineNicotine

is

not…a

highly

hazardous

drug.Themainculprit

issmoke

and,if

nicotinecould

be

delivered

effectivelyandacceptably…without

smoke,

most,if

not

all,ofthe

harmofsmoking

could

probablybeavoidedUKROYALCOLLEGE

OF

PHYSICIANSNicotinewithoutsmoke:

Tobacco

harmreduction

(2016)20Classified-ConfidentialBelief

#6

New

Categories

are

often

a

gateway

tosmoking%

Solus

VapourEntrants

switching

to

FMC*Globally

**FACTIn

general,

newadult

nicotine%SolusVapourEntrantsconsumers

don’t

goswitching

toFMC

2022on

to

smoke2.2%1.8%1.7%3.1%%ofadultpopulation0.1%0.1%0.04%0.05%2.2%2.1%20212022*FactoryMadeCigarettesSource:KantarIncidence

&TrackStudies202221Classified-Confidential**TopNCMarkets:Canada,

Denmark,France,

Germany,Italy,Japan,

Poland,S.Korea,

Sweden,Switzerland,UK–

excluding

USABelief

#7

Poly-users

tend

to

smoke

just

as

muchFMC*

Average

Daily

Consumptionreductionamong

Poly-Users

vs.

FMC

SolusFACTIndex92The

consumer

journeyFMC

+

THPoften

involves

poly-usage100where

cigaretteconsumption

is

reduced8381FMC

+

MOIndexFMC

+

VapourConsumption

in

leading

9

NC

markets

in

stickEquivalent.*FactoryMadeCigarettes22Source:KantarIncidence

&TrackStudies2022“Poly-usage"

references

a

transitional

periodforadultFMCconsumers

towards

acompleteswitching

toNCsduringClassified-Confidentialwhich

adult

consumers

reducecigaretteconsumption

and

choose

toadd

toitaconsumption

ofoneormore

NCs.Canada,

Denmark,Germany,Italy,Japan,

S.Korea,

Sweden,UK,USABelief

#8

New

Categories

are

used

equally

acrosscohortsCategoryuse

-

Age

Cohorts20182022FACTAU30

24%

23%53%62%AU3030-44AO45NC

penetration35%22%43%49%correlates

inverselyto

the

age

cohorts

ofadult

consumers30-44

21%

17%AO45

13%13%28%

23%22%

16%73%62%Solus

NC**Dual

FMC-NC**Solus

FMC**FactoryMadeCigarettes**NC

Includes

Snus23“Dual-usage"

references

atransitional

periodforadultFMCconsumers

towards

acomplete

switching

toNCsduring

which

adultconsumers

reduce

cigaretteSource:KantarIncidence

&TrackStudies2022Classified-Confidentialconsumption

and

choose

toadd

toitconsumption

ofan

NC.AU30:Adultconsumer

fromminimum

legalageto30yrs.AO45:Adultconsumer

over

45yrs.Canada,

Italy,Japan,

UK,SwedenImplication

212

3

4THP

&

Vapour

correlateinversely

to

WeightedAverage

Tar

levelsVapour

is

the

biggestcontributor

toVapour

&

THP

areequally

effective

atencouragingModern

Oral

willhavea

criticalconsumer

growthand

acceleratingpositive

role

to

playsmokers

to

switch56

7

8Most

of

the

harm

fromsmoking

is

caused

byproducts

of

combustion,not

nicotineIn

general,

new

adultnicotine

consumersdon’t

go

on

to

smokeCigarette

consumption

NC

penetrationis

declining

withpoly-usagecorrelates

inversely

tothe

age

cohorts

ofadult

consumersTobacco

Harm

Reduction

is

a

bona

fidecorporate

and

societal

goal24Classified-ConfidentialTheme

3:

Industry

Value12

3

4THP

&

Vapour

correlateinversely

to

WeightedAverage

Tar

levelsVapour

is

the

biggestcontributor

toVapour

&

THP

areequally

effective

atencouragingModern

Oral

willhavea

criticalconsumer

growthand

acceleratingpositive

role

to

playsmokers

to

switch56

7

8Most

of

the

harm

fromsmoking

is

caused

byproducts

of

combustion,not

nicotineIn

general,

new

adultnicotine

consumersdon’t

go

on

to

smokeCigarette

consumption

NC

penetrationis

declining

with

poly-usagecorrelates

inversely

tothe

age

cohorts

ofadult

consumers9

10NCs

are

lessIndustry

value

isprofitabledeclining

withcigarette

sales25Classified-ConfidentialBelief

#9

New

Categories

are

less

profitableAnnual

ConsumerProfitability

IndexVAPOURRechargeableVAPOURDisposableFACTNCs

are

already

positiveat

Gross

Margin

level

inalmost

all

Categories**Europe

Avg.*World

Avg.*World

excl.

US

Avg.>120

SolusFMC†80-120

SolusFMC<80

SolusFMCSource:BAT

data:Indexed

NC

GrossMargin

per

consumer

perannum

vsFMC*World

Averagebased

onTop

17NCmarketsaccounting

for~85%

of

World’sNCsrevenue,basedonBATinternal

est..**Europe

Top

12European

NCMarketsaccounting

for~85%

oftotalEurope’sNCrevenue,based

onBATinternal

est.†Factory

MadeCigarettes-GMsper

unit

based

onBATinternal

estimates:FMCValueformoney

(2023

@‘22FXrates);Users&Avgdaily

consumptiondatabasedonNCTrack,

NCusers.

-Annual

GrossMargin

(excl.

MarketingInvestment

inrevenue&Royalties)

per

userGroup26Classified-ConfidentialBelief

#10

Industry

value

is

declining

with

cigarettesalesT10

Industry

Value

vs

FMC

VolumeFMC**654bnVOLUME-6.3%

CAGRFACT613bnTotal

nicotine

revenueis

growing

year-on-yearwith

New

Categoriesdriving

value

accretion570bn£12bn£10bn£8bnINDUSTRYVALUE+3.4£43bn£43bn£43bn%

CAGR202120222023

EstFMC**

VolumeNC

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