#1Building a Better Tomorrow™ Faster Transformation CAGNY February 2022 BAT A BETTER TOMORROW Jack Bowles | Chief Executive Kingsley Wheaton | Chief Marketing Officer Tadeu Marroco | Finance and Transformation Director 1#2BAT 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 that is a citizen or resident or located in any jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. A BETTER TOMORROW 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 when denoting business activity refer to British American Tobacco Group operating companies, collectively or individually as the case may be. The information contained in this presentation does not purport to be comprehensive and has not been independently verified. Certain industry and market data contained in this presentation has come from third party sources. Third party publications, studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of accuracy or completeness of such data. Forward-looking Statements This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any BAT shares or other securities. 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 British American Tobacco Group (the “Group") operates, including the projected future financial and operating impacts of the COVID-19 pandemic. 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 presentation 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. In particular, among other statements: (i) certain statements in the opening section (slides 5, 10, 11, 12, 16 and 17); (ii) certain statements in the second section (slides 24 and 34); and (iii) certain statements in the third section (slides 43, 45, 48, 49 and 50). 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; 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; and changes in the market position, businesses, financial condition, results of operations or prospects of the Group. 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 presentation and BAT 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 presentation is intended to be a profit forecast and no statement in this presentation 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. 2#3Important Information BAT A BETTER TOMORROW 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 obtained free of charge from the British American Tobacco website www.bat.com. Additional Information Our vapour product Vuse (including Alto, Solo, Ciro and Vibe), and certain oral products including Velo, Grizzly, Kodiak, and Camel Snus, which are sold in the US, are subject to the Food and Drug Administration (FDA) regulation and no reduced-risk claims will be made to these products without agency clearance. No Profit or Earnings Per Share Forecasts No statement in this presentation is intended to be a profit forecast and no statement in this presentation 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. 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. BAT, its directors, officers, employees, agents or advisers do not accept or assume responsibility to any other person to whom this material is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed. The material in this presentation is not provided for product advertising, promotional or marketing purposes. This material does not constitute and should not be construed as constituting an offer to sell, or a solicitation of an offer to buy, any of our products. Our products are sold only in compliance with the laws of the particular jurisdictions in which they are sold. 3#4Building a Better Tomorrow™ Faster Transformation CAGNY February 2022 BAT A BETTER TOMORROW Jack Bowles | Chief Executive Kingsley Wheaton | Chief Marketing Officer Tadeu Marroco | Finance and Transformation Director 4#5Building A Better Tomorrow™ We have built a high growth >£2bn New Category business ... ...with the greatest opportunity to switch smokers to reduced risk products* 2 With strong brands and proven capabilities... ...we are confident in £5bn New Category revenue & N profitability by 2025** 3 BAT A BETTER TOMORROW We are committed to shareholder returns... ...driven by financial discipline & strong cash flow * Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.** New Category Profitability at category contribution level: Profit from the sales of brands after deduction of directly attributable costs (including marketing) and before allocation of overheads. 5#6Our 2019 Commitment A Step-Change In New Categories Combustible Value Growth Simplify the Company BAT A BETTER TOMORROW 6#7A Step Change in New Categories New Category Revenue* 32% CAGR >£2bn CAGR growth over 2018-2021. * At Constant rates. See Appendix A2. ** See Appendix A6. 31% CAGR BAT Adult Consumers of Non- Combustible Products 18m A BETTER TOMORROW ** Doubled Non-Combustible Revenue - accelerating to 12% of Group Revenue 7#8Supported by Combustible Value Growth Combustible Revenue Growth* >3% CAGR Growth over 2018-2021. * At Constant rates. See Appendix A2 Combustible Value Share Growth +20bps Per Annum Average Group BAT >5% CAGR A BETTER TOMORROW Revenue Growth* 8#9And a Simplified Organisation Rationalised Combustible SKUs -30% * *SKU rationalisation 2017-2021. ** Business units 2018-2021 and Quantum savings 2019-2021 Reduced Business Units** -40% BAT A BETTER TOMORROW Savings Delivered 12 months early** £1.3bn 9#10We delivered the Pivotal Year in 2021 Accelerating New Category revenue growth 51% Revenue growth* Reducing New Category losses** c.£100m Reduced losses** BAT De-levered to c. 3x adj. net debt/adj. EBITDA* *** Enabling more active capital allocation Including £2bn Share Buyback in 2022 A BETTER TOMORROW 2.99x Leverage *33*** *Constant rate growth. See Appendix A2. ** Reduction at category contribution level: Profit from the sales of brands after deduction of directly attributable costs (including marketing) and before allocation of overheads. Adjusted net debt to adjusted EBITDA at current rates. See Appendix A1. 10#11We are now entering the next phase of our journey New Category revenue growth and consumer acquisition* New Category contribution to profit growth** BAT Faster Transformation A BETTER TOMORROW Active capital allocation for long- term shareholder value * Constant rate growth. See Appendix A2. Target market for acquisition of consumers of non-combustible products is existing adult smokers/nicotine users. See Appendix A6** Contribution based on the pathway to profitability, with reducing losses at category contribution level: Profit from the sales of brands after deduction of directly attributable costs (including marketing) and before allocation of overheads. 11#12We are on track for £5bn New Category revenue and profitability by 2025 2017* £0.5bn +44% CAGR 2021 * on a representative basis, including a full 12 months of results from US acquisition Reynolds. £2.1bn +25% CAGR BAT New Category Revenue BAT A BETTER TOMORROW 2025 £5bn 12#13Driven by strong share growth across our 3 Global Drive Brands vuse 33.5% #1 #2 Value Share CAN US UK DE FRA GER #2 #3 glo 18.1% Volume Share GER SK JPN ● ITA ROM RUS UKR CZE POL #1 RM VELO 34.7% Volume Share ++ SWE DEN NOR ++ SWZ BAT #3 A BETTER TOMORROW US Share relates to FY21 share. Vapour value share and THP and Modern Oral volume share. Share definitions see Appendix A3. Vapour value share across T5 markets: US, Canada, UK, France, Germany. T5 represent c.75% of Vapour industry revenue (closed-system). Velo volume share across T5 Modern oral markets: US, Sweden, Denmark, Norway, Switzerland and now excludes Germany. glo volume share across T9 THP markets: Japan, South Korea, Russia, Italy, Germany, Romania, Ukraine, Poland and Czech Republic. T5 represent c.80% Modern Oral industry revenue. T9 represent c.80% of THP industry revenue. Velo brand represents over 50% of FY21 Modern Oral markets. Continue to migrate remaining EPOK, LYFT brands into H1 2022. Source: US (Vapour) - Marlin Total Vapour Value Share; Canada - Scan Data Total Vapour Value Share; UK- Nielsen Total Vype Vapour Value Share; France - Strator Total Vapour Value Share; Germany - Nielsen Total Vapour Value Share; US (MO) - Marlin Vol. Share of Total Modern Oral; Sweden - Nielsen Vol. Share of Total Oral; Denmark - Nielsen Vol. Share of Total Oral; Switzerland - Scan Data (excl. SPAR and Top CC) Vol. Share of Total Oral; Norway - Nielsen Vol. Share of Total Oral; Japan - CVS-BC Vol. Share of FMC+THP+Hybrid; Russia - National 2 QMA IMS (BAT+PMI) Vol. Share of FMC+THP; Italy, Ukraine, Czech, Poland and Germany - Nielsen Vol. Share of FMC+THP; Romania - Nielsen KA Vol. share of FMC+THP; South Korea - CVS Vol. Share of FMC+THP+Hybrid 13#14Our transformation journey has accelerated + SWE 2020 63% 2021 72% Note: % Revenue by market FY 2020, 2021 Non-Combustible products revenue % # NOR JPN 42% 47% UK US BAT A BETTER TOMORROW RUS 7% 28% 27% 13% 38% 33% 14% 14% 14#15With additional opportunities Beyond Nicotine Consumer Areas BOOST FOCUS CALM Btomo»>ow 17 investments Ventures closed to date M Health and Wellness Target areas: Functional Products - e.g. Focus, Energize & Relax Strategic collaborations, Ý Science Sustainability Technology partnerships and bolt-on M&A ORGANIGRAM ● BEAUTY E POWER BAOBA BOOST ... morning MIND recovery &BOD tru FOCUS MAINBLEND apple ha BRCKHEAD ENERGY GUM BAT auditation Espe A BETTER TOMORROW alter momer DEFEND Empr FOCUS AWAKE AWAKE Leveraging BAT DNA: Strengths & Capabilities R&D collaboration Associate investment W per KUND BUV Mater ** DEFEND 15#16Addressing our core ESG challenges H E Excellence in ENVIRONMENTAL management 50 million consumers of non-combustible* products by 2030 Reducing the HEALTH impact of our business K S Delivering a positive SOCIAL impact £5bn New Category CO₂ Revenue by 2025 G Creating value for all our stakeholders Carbon neutral Scopes 1 & 2 by 2030** Robust corporate GOVERNANCE Net zero value chain emissions by 2050** BAT A BETTER TOMORROW Eliminate unnecessary single- use plastic & all plastic packaging recyclable^ by 2025** Non-combustible consumer definition. See Appendix A6. ** Environmental targets, net zero across scopes 1, 2 and 3. See Appendix A5. ^ Capable of being reusable, recyclable or compostable. 16#17Well on our way to building A Better Tomorrow™ Our Purpose To reduce the health impact* of our business G A BETTER TOMORROWT * Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive. BAT A BETTER TOMORROW Our Commitment To provide adult consumers with a wide range of enjoyable and less risky products* To encourage adult smokers to switch completely to scientifically-substantiated reduced-risk alternatives* 17#182 Strong brands and proven capabilities - Confident in our 2025 New Category targets BAT A BETTER TOMORROW 18#19Our multi-category strategy is unique and delivering * Revenue Growth Management 8 Consumer Moments PRISM p Digitally Embedded RGM* Consumer Digital Insights Consumer Centricity Product Boundaries Multi-Category Portfolio MAPS Product Satisfaction Index Consumer-Centric Multi-Category model BAT A BETTER TOMORROW 19#20And offers the greatest opportunity to deliver tobacco harm reduction Consumers Market taste profiles Regulation BAT A BETTER TOMORROW MULTI- CATEGORY STRATEGY BAT Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive. A BETTER TOMORROW Opportunity to reduce harm* Commercial opportunity Resilience to regulation Maximises ability to switch smokers, deliver harm reduction and create value 20#21Based on a deep understanding of consumer needs Primary drivers c.70% Secondary drivers c.30% 1 IDENTITY ● ● Premium / Status Modern / Style Innovation / Progression 4 AFFORDABILITY ● Relative Affordability vs FMC Out of Pocket & Total Spend 2 ● 5 ● SATISFACTION Authentic Tobacco Taste / Balance Engaging & Familiar Ritual Nicotine Satisfaction FLAVOUR EXPLORATION Flavour Range & Likeability Experimentation by adult nicotine consumers Satisfying Taste 6 Drivers of New Category Conversion Source: Company data. * Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive. 3 REDUCED RISK* ● BAT A BETTER TOMORROW Reduced harm to Self Personal Hygiene Social Consideration 6 CONVENIENCE ● ● • Simplicity / Ease of Use Conveniently Accessible 21#22Which vary by category Primary drivers c.70% Secondary drivers c.30% 1 IDENTITY 4 5% 16% AFFORDABILITY 8% 23% 14% 35% 2 THP SATISFACTION 15% 11% 8% 20% Vapour 5 FLAVOUR EXPLORATION 30% 18% Modern Oral 6 Drivers of New Category Conversion Source: Company data. * Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive. 3 6 REDUCED RISK* 12% 5% BAT A BETTER TOMORROW 17% 9% CONVENIENCE 27% 23% 22#23DeWALT We have built three Global Drive Brands PLANET OF COLOURS Unlock breathtaking locations around the world Find yours at vuse.com/xu VUSE CHARGE BEYOND This product contain nicotine and addictive 18+ only. Read leaflet in pack Vuse ZERO INCI DRIVEN BY THE ART OF FOREST MINT FLAVOUR CHANGE Vuse 3 Tezos VUSE TESTED A ourse VUSE V Vuse EXPLORE A NEW WORLD & FIND YOUR STYLE &more INTRODUCING NEW glo hyper+ PANELS AND THE UNIQUE BOOST FUNCTION CHOOSE YOUR FLAVOUR & CONTROL YOUR STYLE &more EXPERIENCE ULTIMATE TASTE SATISFACTION DEU neo O NIMMTEN AN TINYE CHORDON O glo NEW MIX& MATCH hyper+ UNIQ PANELS glo THOVEONTOVELO PHOVECHTOVELO l Empty con and recycle. Po OLA Polar Mint BAT THIS IS 2021. MOVE ON TO AMODERN TAKE ON NICOTINE. A BETTER TOMORROW MOVE ON TO VELO NICOTINE POUCHES IN A RECYCLABLE CAN. 18+ only. This continuative and deli CANELO Abaya SMALL CAN BIG PLAN. YOU'VE GOT VELO 2 FONDOVELO VA FOR YOUR YOU'VE GOT THIS MOMENT. YOU'VE GOT VELO - MI P TUCK A POLAR MINT NICOTINE POUCH. YOU'VE GOT VELO MORE FLAVOURS AT VELO.COM potomus 23#24We are embedding ESG in our brands glo vuse Focus areas GREENER PACKAGING POD RECYCLING CO₂ ALU OPTIMISE PRODUCT DESIGN REDUCE CARBON S RECYCLE& UPORADE & ENJOY Focus areas GREENER PACKAGING DEVICE TAKE BACK SCHEME CO₂ GREENER CONSUMABLE neo REDUCE CARBON Source: Company data. Focus areas shown above demonstrate our ESG ambitions for each brand. For more detail on our environmental targets, see Appendix A5. S VELO Recyclable con Focus areas GREENER PACKAGING GREENER POUCH Recycled PP CO₂ BAT ISCC A BETTER TOMORROW RECYCLED PLASTIC Paper con REDUCE CARBON Abower 24#25And driving ESG throughout the business Excellence in ENVIRONMENTAL management Carbon-smart farming programme focused on reducing emissions¹ 35% of sites with zero waste to landfill in our operations² Delivering a positive SOCIAL impact >350,000 human rights training attendances delivered in our leaf operations³ 96% of farmers also growing non-tobacco crops for food or additional sources of income4 BAT A BETTER TOMORROW Robust GOVERNANCE Launched new training on IMP and YAP compliance across digital and social channels5 100% of employees completed annual SOBC training and compliance sign-off 1 Programme focused on reducing emissions from tobacco farming and leveraging the positive effect agriculture could have in removing carbon from the atmosphere. 2 Whenever a site reports all waste as recycled, or incinerated with or without energy recovery, and no waste sent to landfill, it is considered being at site at zero waste to landfill. 3 Delivered by leaf operations and strategic third party suppliers. 4 Reported diversification of farmers contracted to BAT and our strategic third-party suppliers. 5 iCommit training on applying our IMP and YAP guidelines across digital channels being rolled out to all Group employees, with 100% completion by senior leaders during initial phase. 6 SoBC stands for our Standards of Business Conduct. 25#26With further strong ESG recognition MSCI BBB RIGHTS CAMPAIGN REFINITIV™ FT CLIMATE LEADERS FINANCIAL TIMES statista 2021 E BEST HUMAN PLACES TO WORK /- 911100 2021 for LGBTQ Equality 100% CORPORATE EQUALITY INDEX Member of Dow Jones Sustainability Indices Powered by the S&P Global CSA CDP SUPPLIER ENGAGEMENT LEADER 2021 Sustainability Award Gold Class 2022 S&P Global SEAL AWARD WINNER 2021 SUSTAINALYTICS 26.8 Gartner QUALITYSCORE HIGHEST RANKED BY ISS ESG SOCIAL top EMPLOYER 2022 Supply Chain Top 20 GLOBAL 20th consecutive year of DJSI inclusion BAT CERTIFIED EXCELLENCE IN EMPLOYEE CONDITIONS A BETTER TOMORROW 1 RATEMYPLACEMENT NUE AWARDS Top Medium-sized Undergraduate Scheme WINNER 2021 26#27Extensive Scientific Substantiation supports our products as Reduced Risk* glo vuse Emissions : -99%¹ Toxicology: -99%¹ Our data is published in 81 peer-reviewed manuscripts Emissions : - 90% to - 95%² Toxicology: -95%² Our data is published in 75 peer-reviewed manuscripts VELO BAT A BETTER TOMORROW >30 yrs of studies show Snus is much less risky than smoking Toxicology: even less harmful than Snus³ We believe Modern Oral products are reduced risk as toxicant levels are lower than in snus* *Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive. 1. ePod and ePen3 compared to a reference cigarette. 2 Compared to a reference cigarette. 3. Approximate reduction. Comparison based on an assessment of smoke from a scientific standard reference cigarette (approximately 9mg tar) and components released during use of a commercial Snus pouch and a Velo pouch, in terms of the average of the 9 harmful components the World Health Organization recommends to reduce in cigarette smoke. 27#28Governments and institutions are recognising the role of THR and responsible regulation √ AN 208 Public Health England 12 Royal College of Physicians FDA Public Health England became the UK Health Security Agency and Office for Health Improvement and Disparities in 2021. 16 MINISTRY OF HEALTH MANATU HAUORA ерр group in the european parliament INSTITUT NATIONAL DU CANCER BAT A BETTER TOMORROW GOUVERNEMENT Liberté Égalité Fraternité 28#29We are leveraging our strengths to accelerate our transformation BALANCE Outlet Reach Channel Split Deep Consumer Insights - One Size Does Not Fit All vuse EXPLORATION Stigma ACU30 Income 80% FLOW Stigma ACU30 Income 11m* 5% 15% BAT 4-5m 5% 55% TOGETHER Unrivalled Outlet Reach 40% >180 Markets glo PROGRESSIVE ACU30 Income ALONE Stigma VELO ENERGISING Stigma ACU30 Income 7m 10% CLASSIC Stigma ACU30 Income On-premise 50% 40% Beverages Modern >11m Retail Outlets 1.5m 60% 25% 15% Alcohol PLEASURE Convenience/Traditional Distribution power: Note: Company share of retail sales estimated based on category channel breakdown; for 2020 where available, otherwise 2019; numbers rounded for simplicity Channel classification: On-premise includes Bars, Restaurants, Hotels. Modern includes Super/Hypermarkets, Other Grocers, Discounters, Drug, Mixed Retailers (e.g. (department stores); Convenience includes Convenience (traditional./convenience.), Forecourt, Food/Drink/Tobacco Specialists, Independent Grocers; Source: Euromonitor; company financials; desk research; BCG analysis *T40 markets representing c. 90% group revenue. >150m daily consumer touchpoints PRODUCT SATISFACTION INDEX (PSI) (100% ULTRA-LIGHTS MARKETS (c. 20% of Industry FMC+ volumes) Predominantly THP FMC 80% THP Unique Multi-Category 30% D2C e-commerce VAPOUR Design & Product Portfolio LIGHTS MARKETS (c. 30% of Industry FMC* volumes) Both THP & Vapour Modern Oral: Potential across All Market Types -50% MODERN ORAL New Capabilities Revenue Growth Consumer Analytics Accelerating transformation > 1,000+ management hires bringing new capabilities 100% ➤ Learning and development at speed and scale via 100% virtual delivery FMC BOLD 60% THP FT LEADER IN 70% VAPOUR Our People Delivering the Enterprise of the Future DIVERSITY 2021 Bold & Empowered top GLOBAL EMPLOYER 2022 CHEESTALTUNCE AD * FMC: Factory Made Cigarette. Source: Volumes split based on BAT internal estimates of industry (Top 40 markets,. excluding China, India) Index based on external consumer track data. For purpose of this slide, the terms "Full-flavour", "ultra-light" and "light" refer to global consumer taste and sensorial preferences. 'Full flavour", "light" and "ultra-light" should not be interpreted as a representation of the products' risk profile or the amount of tar or nicotine delivered to smokers in real world smoking conditions. 65% MODERN ORAL E BEST PLACES TO WORK > 80+ awards and certifications CORPORATE SCALEX YOUR VOICE Wisin Towers Watson I'd Purpose driven organisation > With new Ethos and leadership capability FAST 100% FULL FLAVOUR MARKETS (c. 50% of Industry FMC+ volumes) Predominantly Vapour FMC 25% THP BAT A BETTER TOMORROW ANTETY 75% VAPOUR DIVERSE 70% Stronger, Simpler, Faster MODERN ORAL > Connected and Digitally enabled workforce > Simpler, faster organisation empowered workforce 29#30Leveraging Digital Capabilities 3.4bn Potential media reach from Strategic partnerships DEWALT easypost. FInECC W DRIVEN BY Gulf splunks M 2 CHANGE wwwwww #1 in Branded search traffic across T5* for Vuse Vuse 13 Tezos RICHARD MILLE KONEKT V Vuse puuse 980 +600m Increase in adult social followers 14.2m Contactable Adult New Category Consumers 2 X3 Profitability +42% v Traditional retail*** Active subscribers 40% of Vuse own e-comm revenue BAT A BETTER TOMORROW 64m Total own e-comm visits** +26% Strategic own e-comm revenue^ Growth based on 2021 versus 2020. * T5 markets: US, CAN, UK, FRA and GER. ** BAT Owned eComm. *** Based on consumer lifetime estimates. ^ Strategic revenue relates to the revenue from the Group's strategic brands. 72% Excluding the regulatory impacts beyond our control, which limited our ability to operate - (US Pact Act, RU ban on online advertising and consumables sales, JP promo & excise changes). 30#31And strong products are driving improved conversion rates BAT's active consumers who have stopped regular smoking¹ glo Dec 20 Conversion² 44% In the Top 5 THP markets3 Conversion² 45% In the Top 5 Vapour markets4 Dec 21 52% 51% BAT A BETTER TOMORROW Category5 53% 41% Source: Monthly Kantar tracker data. 1 Active Consumers - use New Category product at least once a week. 2 "Converted Smokers" - % of active consumers who do not consume Combustibles. Here, "smokers" are defined as daily combustible consumers as per standard BAT definition. 3 Top 5 markets THP markets refer to: Japan, Russia, Ukraine, Italy, South Korea. 4 Top 5 Vapour markets refer to: USA, Canada, UK, France and Germany. 5 Category refers to peer conversion scores weighted by volume across top 5 markets. 31#32This is driving strong share* growth across all 3 Categories US CAN UK FRA GER vuse 2021 FY'21 vs. FY'20 32.5% 1+7.6pp 80.4% 1+34.3 pp 16.9% 1+2.1pp 45.7% +14.2pp 59.9% +10.1pp O JPN RUS ITA UKR ROM glo 2021 21.2% 19.3% 12.8% 20.9% FY'21 vs. FY'20 +1.8pp 1+10.7 pp +8.7pp 1+9.9pp 22.1% +5.3pp VELO 2021 SWZ + NOR US + 59.6% SWE + 92.6% DEN BAT 11.7% +4.1pp A BETTER TOMORROW FY'21 vs. FY'20 59.6% +5.8pp 63.9% 92.6% -1.3pp 91.5% -3.4pp 1+1.8 pp See Appendix A3 for share definitions. * Value share for vapour. Volume share for THP and Modern Oral. Source: 1 US (Vapour) - Marlin Total Vapour Value Share; 2 Canada - Scan Data Total Vapour Value Share; 3 UK - Nielsen Total Vype Vapour Value Share; 4 France - Strator Total Vapour Value Share; 5 Germany - Nielsen Total Vapour Value Share; 6 US (MO) - Marlin Vol. Share of Total Modern Oral; 7 Sweden - Nielsen Vol. Share of Total Modern Oral; 8 Denmark - Nielsen Vol. Share of Total Modern Oral; 9 Switzerland - Scan Data (excl SPAR and Top CC) Vol. Share of Total Modern Oral; 10 Norway - Nielsen Vol. Share of Total Modern Oral; 11 Japan - CVS-BC Vol. Share of THP+Hybrid; 12 Russia - National 2 QMA IMS (BAT+PMI) Vol. Share of THP; 13 Italy - Nielsen Vol. Share of THP; 14 Ukraine - Nielsen Vol. Share of THP; 15; Romania -Nielsen KA Vol. share of THP 32#33-| 2 | 3 4 And successfully prioritising our investments MAPS Market Consumer & Commercial Opportunity Product Satisfaction Index (PSI) Regulatory & Tax/Excise Environment Distribution & Channel Landscape * Across non-combustible products. Source: Kantar & Internal Forecasts P vuse N. America & W. Europe Predominantly Vapour VELO Northern Europe //// Oral Modern Oral Emerging Potential BAT A BETTER TOMORROW glo Central & Eastern Europe Mixed Usage* Japan & SK Predominantly THP 33#34● ● In the US, the focus is vapour Large pool of adult nicotine consumers Vapour is the largest New Category Vapour is expected to be the key driver of New Category value growth over next 5 years* Modern Oral 1% Vapour 7% Trad. Oral 10% THP 0% → US Industry Nicotine value* by Category ** BAT A BETTER TOMORROW * Estimates based on company data. Tracker FY 2021 21+ ** Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive. Vapour offers the greatest opportunity to transition US smokers to reduced-risk products Combustibles 83% 34#35Vuse has closed a 27 percentage point share gap in just 2 years Competitor 1 vuse Disposables 50.7 (27.2) 23.5 5.1 Jan 20 54.4 (32.1) 22.3 8.8 42.7 (13.6) 29.1 15.9 Dec 20 Value share of total vapour (closed systems) - monthly share to Dec 2021. See Appendix A3 for Value share definition. 36.0 (0.1) 35.9 20.2 Dec 21 BAT A BETTER TOMORROW 7.6ppts Value share growth FY21 V FY20 35#36Whilst also achieving profitability* in H2 2021 £166m HT 20 £217m £235m H2' 20 HT 21 Revenue (£m) vuse £326m H2' 21 11 H2' 20 HT 21 ■Category Contribution (£m) HT' 20 H2' 21 BAT A BETTER TOMORROW 50% Revenue CAGR Source: Company data. * New Category Profitability at category contribution level: Profit from the sales of brands after deduction of directly attributable costs (including marketing) and before allocation of overheads. Profitable in H2 2021 36#37The transformation is happening in ENA 133 2021 2020 2019 14% 8% 5% ΕΝΑ Note: % Revenue by market FY2021 2021 New Categories Revenue as % of Total Revenue (Selected markets account for >90% of ENA New Category Revenue) 56% 53% 48% 38% 32% 32% 28% 26% 26% 26% 23% BAT 19% ||| FIN KAZ SWE GBR POL NOR AUT ITA DNK FRA UKR CZE RUS CHE + A BETTER TOMORROW 14% 10% 37#38Vuse - Value share leader in ENA Vuse 99+ RETENTION 樂 UK Vuse #1 Brand in 7 markets* FRA GER BEL 99% Retention Achieved in Priority Markets** ++ SWZ Posts VYPE IS NOW VUS ROY by pre rod DEN CZE VYPE IS NOW VUSE rea 12 ALA S Y vuse ORIGINALS Dark Cherry Ped eLiquid Pod * Value share of total vapour (closed systems) FY 2021. ** Priority markets refer to Vapour Top 5 markets, 3 of which are in ENA: UK, France and Germany 13% This product contains nicotine and is addictive Ⓡ 12 E-Comm & 14 Social Media Platforms on Vuse Crip Aut 13% de CBUT VUSE ORIGINALS Crushed aten idd This produ nicotine wh addictive Luse Smoot Varilla This produc nicotine which addictive s Upgraded & Optimised Portfolio vuse ORIGINALS Original Strawberry ePen Liquid ra 12 This product contains nicotine which is a highly addictive substance ONE BRAND TO SERVE YOU BETTER BAT A BETTER TOMORROW Improved Consumer Experience & Exclusive Digital Services 14 markets migrated from Vype to Vuse in 6 months 38#39glo - Step change with Hyper in ENA Step change in THP Performance with Hyper Launch c.10bn sticks in 2021 +195% vs FY20 glo national volume share of total nicotine* market c.2% RUS ITA RUS UKR Approaching 2% glo national volume share of THP category c.20% c.15% UKR ROM POL GRE POL HUN ITA GRE HUN 56 2019 BAT A BETTER TOMORROW glo Revenue** £m +167% vs FY20 136 2020 364 2021 * FMC + THP market Note: Source for market/segment share data is Retail Audit (RA) in measured channels; where RA is not available share estimates are based on In Market Sales (IMS) or scanning data. See Appendix A3 for Volume share definition. **2021 revenue at constant rates. See Appendix A2. 39#40Velo - the clear category leader in ENA BAT has leadership position in 15 of 17 ENA markets BAT 2021 volume share of Modern Oral in key markets +60% 93% 64% SWE DEN + 92% SWZ CZE NOR 72% PIN Ruby Berry 116 2019 185 BAT Velo Revenue* £m 2020 A BETTER TOMORROW 46% vs FY20 Note: Source for market/segment share data is Retail Audit (RA) in measured channels; where RA is not available share estimates are based on In Market Sales (IMS) or scanning data. See Appendix A3 for Volume share definition. *Revenue at constant rates. See Appendix A2. Includes EPOK/LYFT brands in ENA. Velo brand represents over 50% of FY21 Modern Oral markets. Continue to migrate remaining EPOK, LYFT brands into H1 2022. 269 2021 40#41Our multi-category strategy is driving our transformation * Revenue Growth Management 8 Consumer Moments PRISM p Digitally Embedded RGM* Consumer Digital Insights Consumer Centricity Product Boundaries Multi-Category Portfolio MAPS Product Satisfaction Index Consumer-Centric Multi-Category model BAT A BETTER TOMORROW 41#42MI Committed to shareholder returns through financial discipline & strong cash flow BAT A BETTER TOMORROW 42#43In summary we have delivered our Pivotal Year in 2021 Accelerating New Category revenue growth 51% Revenue growth* • +4.8m Consumers of our non-combustible products to 18.3m Strong share growth ** Improving New Category profitability ● c.£100m reduction in New Category losses Driven by increased scale *** Clear pathway to 2025 profitability ● ● BAT A BETTER TOMORROW De-levered to c. 3x adj. net debt/ adj. EBITDA^ £2bn 2022 share buyback 104% Operating cash conversion De-levered to c.3x^ * At constant rates. See Appendix A2. ** Volume share in THP, Modern Oral and Value share in Vapour. ***Reduction at category contribution level: Profit from the sales of brands after deduction of directly attributable costs (including marketing) and before allocation of overheads. ^ Adjusted Net Debt to Adjusted EBITDA. See Appendix A1. 43#44Delivering robust results alongside our transformation +6.9% +4.3% +20bps Cigarette & THP Value Share^ J Group Revenue* +51% New Category Revenue* امیدا Combustibles Price/Mix** -0.3% Combustibles BAT Volume P BAT A BETTER TOMORROW £7.4bn Free Cash Flow*** .... +5.2 +6.6. Adjusted Profit* from Operations EPS* % Adjusted Diluted Share growth FY21 versus FY20. Source: Company data. * On an adjusted, constant rate basis. See Appendix A1 & A2. ** Price/mix defined in Appendix A4. ^ See Appendix A3. *** Free Cash Flow before payment of dividends. See Appendix A1 and A7. 44#45Together with c.£100m reduced losses from New Categories driven by growing scale Improved Trade Margin** Reduced Cost of Goods Marketing Spend Effectiveness (MSE) ● ● Vuse Trade Margins improved by 31% Revenue Growth Management Leveraging big data analytics Consumer acquisition cost reduction Vuse 47% improvement Further scale benefits c.£220m productivity savings™ delivered in 2021 Vuse Cost of Goods reduced by 22% driven by automation ● BAT glo 25% improvement Velo 28% improvement A BETTER TOMORROW Clear Pathway to Profitability by 2025* % Change calculated based on FY21 v FY20. * Reduction in losses at category contribution level. Profitability by 2025 at category contribution level: Profit from the sales of brands after deduction of directly attributable costs (including marketing) and before allocation of overheads. ** Reference to trade margins is to recommended margins based on recommended resale prices. *** Across New Categories. 45#46Guest: Delivering the Enterprise of the Future Quantum Delivery Over £1 Bn Total Savings Delivered 12 months early £1.3 Bn Savings delivered 80% Revenue and New Categories investment coverage by RGM and MSE Unleash Innovation To become a technology- driven CPG company Breakthrough Innovations with strong IP -50% Development time Empowered Organisation Faster and simpler organisation; stronger with new capabilities c.10,000 Reduction in headcount in the last 3 years c.2,000 New capability roles in the last 3 years Shaping Sustainability World-class science backing our products & ESG ambitions 1st Of its kind FDA Marketing Authorisation for Vuse Solo* On track "Carbon Neutral" by 2030** "Net Zero" by 2050** BAT Technology & Digital Acceleration in digital, analytics & automation to become top quartile +26% Strategic own e-Comm revenue *** +42% Contactable Adult New Category Consumers^ * Original flavour. ** Carbon Neutrality across our operations. Scopes 1&2. Net Zero across our value chain: Scopes 1, 2 and 3. Environmental targets. See Appendix A5. *** Constant rate growth FY21 v FY20. See Appendix A2. ^FY21 growth versus FY20. 46#47We have successfully de-levered driven by strong cash flow Continued Strong Operating Cash Conversion* 100% 2018^ 101% Avg 97% 2019 103% 2020 Operating Cash Conversion% 104% 2021 Reduced Leverage to c.3x 4.00 2018 3.51 * See Appendix A1 and A8. ** Average leverage reduction at Constant FX. *** Adjusted Net Debt to Adjusted EBITDA. See Appendix A1. ^ Normalised for MSA timing. 3.26 2019 Adjusted Net Debt / Adjusted EBITDA*** 2020 BAT A BETTER TOMORROW -0.4x Avg** 2.99 2021 47#48We are committed to shareholder returns with £2bn 2022 buyback Growing Dividend Cash Flow Investing in our Transformation Free Cash Flow* Leverage within 2-3X* Litigation/ Fiscal/Regulatory outcomes ** Bolt-On M&A Active Capital Allocation Framework Share Buybacks BAT c.£40bn 5 Year Cumulative A BETTER TOMORROW Free Cash Flow**** * Free cash flow before dividends. See Appendix A1 and A7. ** Adjusted net debt to adjusted EBITDA at current rates. See Appendix A1. ***Ambition over the next 5 years. Pre-dividend payments. See Appendix A1 and A7. 48#49Delivering shared stakeholder & shareholder value £5bn New Category revenue and profitability by 2025* Beyond Nicotine opportunities 3-5% Group Revenue Growth** High-Single Figure EPS^ growth Medium term outlook BAT A BETTER TOMORROW Cumulative free cash generation c.£40bn*** * Profitability at category contribution level: Profit from the sales of brands after deduction of directly attributable costs (including marketing) and before allocation of overheads. ** At constant rates. See Appendix A2. ^Adjusted diluted constant rate basis. See Appendix A1 & A2. *** Ambition over the next 5 years. Pre dividend payments. See Appendix A1 and A7. 49#50Transforming BAT into a Multi-Category CPG with BAT greater societal acceptance A BETTER TOMORROW From Cigarettes And Declining Volume Growing Value BAT A BETTER TOMORROW Multi-category CPG Nicotine & Beyond* To Building A Better Tomorrow™ Growing Volume & Value *Beyond refers to Wellbeing & Stimulation Beyond Nicotine. Expected target market for consumer acquisition is existing adult smokers/nicotine/beyond nicotine users. And 50#51Building a Better Tomorrow™ Faster Transformation CAGNY February 2022 BAT A BETTER TOMORROW Jack Bowles | Chief Executive Kingsley Wheaton | Chief Marketing Officer Tadeu Marroco | Finance and Transformation Director 51#52Appendix A1: Adjusting (Adj.) Adjusting items represent certain items which the Group considers distinctive based upon their size, nature or incidence. BAT A BETTER TOMORROW A2: Constant currency Constant currency - measures are calculated based on the prior year's exchange rate, removing the potentially distorting effect of translational foreign exchange on the Group's results. The Group does not adjust for normal transactional gains or losses in profit from operations which are generated by exchange rate movements. A3: Share metrics Volume share: The number of units bought by consumers of a specific brand or combination of brands, as a proportion of the total units bought by consumers in the industry, category or other sub-categorisation. Sub categories include, but are not limited to, the total nicotine category, modern oral, vapour, traditional oral or cigarette. Corporate volume share is the share held by BAT Group/Reynolds (US region). Except when referencing particular markets, volume share is based on our key markets (representing over 80% of the Group's cigarette volume). Value share: The retail value of units bought by consumers of a particular brand or combination of brands, as a proportion of the total retail value of units bought by consumers in the industry, category or other sub-categorisation in discussion. Nicotine share: The retail sales volume/value of the nicotine product sold as a proportion of total specified nicotine product volume/value in that market. In the US covers: Combustibles, vapour and total oral. A5: Environmental Targets Targets include climate change, water and waste, sustainable agriculture. Full details are available from the latest ESG Report British American Tobacco - Sustainability reporting (bat.com) A4: Price/Mix Price mix is a term used by management and investors to explain the movement in revenue between periods. Revenue is affected by the volume (how many units are sold) and the value (how much is each unit sold for). Price mix is used to explain the value component of the sales as the Group sells each unit for a value (price) but may also achieve a movement in revenue due to the relative proportions of higher value volume sold compared to lower value volume sold (mix). A6: Consumers of Non-Combustible Products The number of consumers of Non-Combustible products is defined as the estimated number of Legal Age (minimum 18 years) consumers of the Group's Non-Combustible products. In markets where regular consumer tracking is in place, this estimate is obtained from adult consumer tracking studies conducted by third parties (including Kantar). In markets where regular consumer tracking is not in place, the number of consumers of Non-Combustible products is derived from volume sales of consumables and devices in such markets, using consumption patterns obtained from other similar markets with adult consumer tracking (utilising studies conducted by third parties including Kantar). The number of consumers is adjusted for those identified (as part of the consumer tracking studies undertaken) as using more than one BAT Brand - referred to as "poly users". The number of consumers of Non-Combustible products is used by management to assess the number of consumers using the Group's New Categories products as the increase in Non-Combustible products is a key pillar of the Group's ESG ambition and is integral to the sustainability of our business. The Group's management believes that this measure is useful to investors given the Group's ESG ambition and alignment to the sustainability of the business with respect to the Non-Combustibles portfolio. A7: Free Cash Flow Net cash generated from operating activities before the impact of trading loans provided to a third party and after dividends paid to non-controlling interests, net interest paid and net capital expenditure. A8: Operating Cash Conversion Net cash generated from operating activities before the impact of adjusting items and dividends from associates and excluding trading loans to third parties, pension short fall funding, taxes paid and net capital expenditure, as a proportion of adjusted profit from operations. 52