A Purposeful and Profitable

Pathway to
A Better Tomorrow TM

Our New Category Journey

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 Important Information
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In particular, among other statements: certain statements on slides 5, 6, 17, 27 and 33.
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whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on such forward-looking statements.

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 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 obtained free of charge at the SEC’s website, http://www.sec.gov, and BAT’s Annual Reports, which may be
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Audience
The 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.
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sold only in compliance with the laws of the particular jurisdictions in which they are sold.

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 Today’s Themes

01 02 03

A Multi- Tobacco New Categories

Category Harm are
Portfolio is Reduction value accretive
essential is a journey

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 Our purpose is to build…

…through reducing the health impact of our

business by offering a greater choice of enjoyable
and less risky*† products for our consumers
*Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not
risk free and are addictive.
†Our vapour product Vuse (including Alto, Solo, Ciro and Vibe), and certain products, including Velo, Grizzly, Kodiak,
5 and Camel Snus, which are sold in the U.S., are subject to FDA regulation and no reduced-risk claims will be made
as to these products
Classified -without agency clearance.
Confidential
 Our Objective:

Delivering value for all of our stakeholders

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 …and we’ve only just begun

100m of 1.1bn

Global consumer numbers for New Categories and Smokers at an Industry Level
7 Source: Statista 2023, Kantar Incidence & Track Studies
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 Increasingly a global phenomenon

~60% ~30% BRA MEX TUR

Of T-50 markets Countries restrict Key global

fully open to New 1 or more New markets remain
Categories Categories inaccessible

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Classified - Confidential Source: BAT Data of current market regulations H1 2023
 Markets and consumers are not homogeneous

Accessible NC markets
Access restricted to one or more NCs
Highly restricted or inaccessible to NCs

SATISFACTION FLAVOUR
PREFERENCES

IDENTITY VALUE

HARM
REDUCTION CONVENIENCE

Fundamental Drivers Occasions & Consumption Regulation & Access

No single solution is capable of meeting all preferences

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Classified - Confidential Source: BAT data & Proprietary Consumer Research
 So… we are investing now in a Multi-Category future

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 Beliefs to
Challenge

11
 Beliefs to Challenge

1 2 3 4
There is a THP attracts the THP encourages Modern Oral is a
‘one size fits all’ most consumers more switching Scandinavian
solution than vaping phenomenon

5 6 7 8
Nicotine is a New Categories (NCs) NCs are used Poly-users tend to
substantial cause of are often a gateway equally across smoke just as much
disease from smoking to smoking cohorts

9 10
NCs are less Industry value is
profitable declining with
cigarette sales

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 Theme 1: Multi-Category

1 2 3 4
There is a THP attracts the THP encourages Modern Oral is a
‘one size fits all’ most consumers more switching Scandinavian
solution than vaping phenomenon

5 6 7 8
Nicotine is a New Categories (NCs) NCs are used Poly-users tend to
substantial cause of are often a gateway equally across smoke just as much
disease from smoking to smoking cohorts

9 10
NCs are less Industry value is
profitable declining with
cigarette sales

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 Belief #1 There is a ‘one size fits all’ solution

>80% >70%
of THP of Vapour
60%

FACT 80%

50% 70%

THP and Vapour

Vaping Penetration (%FMC*)

THP Penetration (%FMC*)
60%
40%

correlate 50%

30%

inversely to 40%

Weighted
30%
20%

20%

Average Tar 10%

10%

levels 0% 0%

8.5mg 8.5mg
Average Weighted Average Weighted
Tar per Cigarette Tar per Cigarette

* FMC: Factory Made Cigarettes

14 Source: Kantar Incidence Study 2022, Retail Audit (suppliers different by market), BAT internal information
Belgium, Bulgaria, Canada, Colombia, Croatia, Czech Republic, Denmark, France, Germany, Greece, Hungary, Italy, Japan, Kazakhstan, Malaysia, Mexico, Netherlands, New Zealand, Poland, Portugal, Russia, Saudi Arabia, Spain, South Korea, Sweden, Switzerland, UK, Ukraine, USA
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 Belief #2 THP attracts the most consumers

62
# Total Adult Users* (Mn)
54

FACT
40
43 +36
Vapour is the biggest
34
contributor to
26
consumer growth +24 21
and accelerating 13
17

10 11
10
7
2 2

2018 2019 2020 2021 2022

Vapour THP MO

Source: Kantar Incidence & Track Studies 2022

*Adult users based on 20 Years of Age+ in USA. 18+ in all other markets
15 T42 Markets: Algeria, Argentina, Australia, Bangladesh, Belgium, Brazil, Bulgaria, Canada, Chile, Colombia, Czech Republic, Denmark, Egypt, France, Germany, Greece, Hungary, Indonesia, Italy, Japan, Kazakhstan,
Malaysia, Mexico, Morocco, Netherlands, New Zealand, Nigeria, Pakistan, Poland, Romania, Saudi Arabia, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Turkey, UK, Ukraine, USA, Vietnam
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 Belief #3 THP encourages more switching than vaping

NC Consumers: Still Smoking Daily Stopped Smoking Daily

39% 37%

FACT
61% 63%

Vapour* and THP THP Vapour

are equally effective 54% 65%

at encouraging
66% 71%

smokers to switch 34% 29% 46% 35%

Vapour THP Vapour THP

65% 64% 61% 63%

35% 36% 39% 37%

Vapour THP Vapour THP

16 Source: Kantar Incidence & Track Studies 2022

Classified - Confidential * Vapour includes Disposables and rechargeable closed system only
 Belief #4 Modern Oral is a Scandinavian phenomenon

MO Revenue Contribution
1.5

FACT 22%
1.1
MO will have a critical 21%
positive role to play as 0.8

market expansion 19% 53%

and the US accelerate 50%

52%

growth
27% 25%
31%

2021 2022 2023 Est

Nordics USA RoW

17 MO Industry Revenue, £bn

Classified - Confidential Source: Kantar Incidence Study 2022, BAT Outlook
 Implication 1

1 2 3 4
THP & Vapour correlate Vapour is the biggest Vapour & THP are Modern Oral will
inversely to Weighted contributor to equally effective at have a critical
Average Tar levels consumer growth encouraging positive role to play
and accelerating smokers to switch

A Multi-Category Portfolio is Essential

to Deliver our Purpose & Industry
Transition

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 Theme 2: THR

1 2 3 4
THP & Vapour correlate Vapour is the biggest Vapour & THP are Modern Oral will
inversely to Weighted contributor to equally effective at have a critical
Average Tar levels consumer growth encouraging positive role to play
and accelerating smokers to switch

5 6 7 8
Nicotine is a New Categories (NCs) NCs are used Poly-users tend to
substantial cause of are often a gateway equally across smoke just as much
disease from smoking to smoking cohorts

9 10
NCs are less Industry value is
profitable declining with
cigarette sales

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 Belief #5 Nicotine is a substantial cause of disease
from smoking

It’s the other chemical compounds in

tobacco, and in the smoke created by
setting tobacco on fire, that directly and
FACT primarily cause the illness and death,
not the nicotine
Most of the harm from DR. SCOTT GOTTLIEB
US FDA COMMISSIONER (JULY 2017)

smoking is caused by
products of combustion, Nicotine is not…a highly hazardous drug.
The main culprit is smoke and, if nicotine
not nicotine could be delivered effectively and
acceptably…without smoke, most, if not all,
of the harm of smoking could probably be
avoided
UK ROYAL COLLEGE OF PHYSICIANS
Nicotine without smoke: Tobacco harm reduction (2016)

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 Belief #6 New Categories are often a gateway to
smoking
% Solus Vapour Entrants switching to FMC*

Globally **

FACT

In general, new
adult nicotine % Solus Vapour
Entrants

consumers don’t go switching to

FMC 2022

on to smoke 2.2% 1.8% 1.7% 3.1%

% of adult 0.1% 0.1% 0.04% 0.05%

population
2.2% 2.1%

2021 2022

*Factory Made Cigarettes

21 Source: Kantar Incidence & Track Studies 2022
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**Top NC- Confidential
Markets: Canada, Denmark, France, Germany, Italy, Japan, Poland, S. Korea, Sweden, Switzerland, UK – excluding USA
 Belief #7 New Categories are used equally across
cohorts
Category use - Age Cohorts

2018 2022
FACT
AU30 24% 23% 53% AU30 35% 22% 43%
NC penetration
correlates inversely
to the age cohorts of 30-44 21% 17% 62% 30-44 28% 23% 49%
adult consumers

AO45 13%13% 73% AO45 22% 16% 62%

Solus NC** Dual FMC-NC** Solus FMC*

*Factory Made Cigarettes ** NC Includes Snus

22 “Dual-usage" references a transitional period for adult FMC consumers towards a complete switching to NCs during which adult consumers reduce cigarette Source:
Kantar Incidence & Track Studies 2022
consumption and choose to add to it consumption of an NC. AU30: Adult consumer Classified - Confidential
from minimum legal age to 30yrs. AO45: Adult consumer over 45 yrs. Canada, Italy, Japan, UK, Sweden
 Belief #8 Poly-users tend to smoke just as much

FMC* Average Daily Consumption reduction

among Poly-Users vs. FMC Solus
FACT
Index
The consumer journey FMC + THP 92
often involves poly-usage
where cigarette 100Index
FMC + MO 83
consumption is reduced FMC + Vapour 81

Consumption in leading 9 NC markets in stick Equivalent.

*Factory Made Cigarettes

23 “Poly-usage" references a transitional period for adult FMC consumers towards a complete switching to NCs during Source: Kantar Incidence & Track Studies 2022
which adult consumers reduce cigarette consumption Classified - Confidential
and choose to add to it a consumption of one or more NCs. Canada, Denmark, Germany, Italy, Japan, S. Korea, Sweden, UK, USA
 Implication 2

1 2 3 4
THP & Vapour correlate Vapour is the biggest Vapour & THP are Modern Oral will
inversely to Weighted contributor to equally effective at have a critical
Average Tar levels consumer growth encouraging positive role to play
and accelerating smokers to switch

5 6 7 8
Most of the harm from In general, new adult NC penetration Cigarette
smoking is caused by nicotine consumers correlates inversely to consumption is
products of combustion, don’t go on to smoke the age cohorts of adult declining with
not nicotine consumers poly-usage

Tobacco Harm Reduction is a bona fide

corporate and societal goal

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 Theme 3: Industry Value

1 2 3 4
THP & Vapour correlate Vapour is the biggest Vapour & THP are Modern Oral will
inversely to Weighted contributor to equally effective at have a critical
Average Tar levels consumer growth encouraging positive role to play
and accelerating smokers to switch

5 6 7 8
Most of the harm from In general, new adult NC penetration Cigarette
smoking is caused by nicotine consumers correlates inversely to consumption is
products of combustion, don’t go on to smoke the age cohorts of adult declining with
not nicotine consumers poly-usage

9 10
NCs are less Industry value is
profitable declining with
cigarette sales

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 Belief #9 New Categories are less profitable

Annual Consumer Profitability Index

VAPOUR VAPOUR
Rechargeable Disposable

FACT

NCs are already positive

at Gross Margin level in
almost all Categories **Europe Avg.

*World Avg.
*World excl. US Avg.

>120 Solus FMC† 80-120 Solus FMC <80 Solus FMC

Source: BAT data: Indexed NC Gross Margin per consumer per annum vs FMC
*World Average based on Top 17 NC markets accounting for ~85% of World’s NCs revenue, based on BAT internal est..
26 **Europe Top 12 European NC Markets accounting for ~85% of total Europe’s NC revenue, based on BAT internal est. †Factory Made Cigarettes
-GMs per unit based on BAT internal estimates: FMC Value for money (2023 @ ‘22 FX rates); Users & Avg daily consumption data based on NC
Classified - Confidential Track, NC users. -Annual Gross Margin (excl. Marketing Investment in revenue & Royalties) per user Group
 Belief #10 Industry value is declining with cigarette
sales
T10 Industry Value vs FMC Volume

FMC**
VOLUME 654bn
FACT
-6.3 613bn
Total nicotine revenue % CAGR
570bn
is growing year-on-year
£8bn £10bn £12bn
with New Categories INDUSTRY
VALUE
driving value accretion
+3.4 £43bn £43bn £43bn
% CAGR

2021 2022 2023 Est

FMC** Volume NC Value (Rev*) FMC Value (Rev*)

*Revenue **Factory Made Cigarettes

27 Source: BAT Outlook
USA, UK, Germany, Canada, Japan, Switzerland, Italy, Denmark, Poland, South Korea, France, Sweden
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 10 Facts

1 2 3 4
THP & Vapour correlate Vapour is the biggest Vapour & THP are Modern Oral will
inversely to Weighted contributor to equally effective at have a critical
Average Tar levels consumer growth encouraging positive role to play
and accelerating smokers to switch

5 6 7 8
Most of the harm from In general, new adult NC penetration Cigarette
smoking is caused by nicotine consumers correlates inversely to consumption is
products of combustion, don’t go on to smoke the age cohorts of adult declining with
not nicotine consumers poly-usage

9 10
NCs are already positive Total nicotine revenue is
at gross margin level in growing year-on-year with
almost all Categories NCs driving value accretion

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 Today’s Themes

1 2 3
A Multi-Category Tobacco Harm New Category
Portfolio is Reduction is Products are
Essential a journey Value Accretive

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 Belief #11 Japan is the ‘bellwether’ transformation
story
Sweden FMC* Incidence 2008 - 2022

14.3%
13.4%

Sweden has 11.8%

11.3%

successfully delivered a 10.0%

9.0%
multi-decade Tobacco 6.9%
Harm Reduction policy 5.9%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

*Factory Made Cigarettes

30 Source: Euromonitor
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 Video

* This slide includes materials publicly shared by third parties, which do not necessarily reflect BAT’s views and positions - Source: Smoke Free Sweden 2023**, Twitter
31 **Health Diplomats is a global network of public health experts committed to developing and delivering solutions to global health-related problems.
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 In Summary

Delivering High Quality,

Multi-
Stakeholder
= Sustainable
Business Model,
Value Long into the Future

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 NC value contribution growing fast in the top 12 markets

BAT Non-Combustibles Revenue as % of Total Revenue in TOP12 NC markets

74%
72%

2021 2022

52%
47% 46%
43% 41%
38% 40% 38%
32%
25% 26% 26%
23%
16% 17% 16% 15%
14%
10% 12%
4% 5%

SWE JAP UK POL FRA DEN ITA S.KOR USA SWI CAN GER
Non-combustibles include NC & Traditional Oral
* Revenue from Non-Combustible products as a % of total revenue in each respective market.
FX @21. Constant currency measures are calculated based on the prior year's exchange rate, removing the potentially distorting effect of translational foreign exchange on
33 the BAT Group's results. The BAT Group does not adjust for normal transactional gains or losses in profit from operations which are generated by exchange rate movements
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 >30% Non Combustible revenue in 23 investment markets

Our non-Combustible products revenue % H1’23*

FRA AUS EST JPN UK

DEN POR SLO ITA POL KAZ LIT SWE FIN

GUA LAT D REP NOR GRE ICE CZE SLK UAE

>30% >40% >50% >70%

34 * Revenue from Non-Combustible products (NCs & Traditional Oral) as a % of total revenue in each respective market.
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 …and we’ve only just begun

100m of 1.1bn

35 Global consumer numbers for New Categories and Smokers at an Industry Level
Classified - Confidential Source: Statista 2023, Kantar Incidence & Track Studies
 A Purposeful and Profitable
Pathway to
A Better Tomorrow TM

Our New Category Journey

36
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