#1Z BAT BAT A BETTER TOMORROW Deutsche Bank Conference June 2021 X Y Delivering Multi-Stakeholder Value through The Enterprise of the Future IME f#2BAT A BETTER TOMORROW 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. 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 tobacco 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 These materials do not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any British American Tobacco p.l.c. ("BAT") shares or other securities. These materials contain 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. 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 these materials 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 market size reduction and consumer down-trading; 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 these materials 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. 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. 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. Additional information Our vapour product Vuse (including Alto and Vibe), and certain products including Grizzly, Granit, Camel Snus, Velo and Kodiak, which are sold in the U.S., are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance. 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, 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#4Transforming to Create Value for All Stakeholders BAT A BETTER TOMORROW Kingsley Wheaton | Chief Marketing Officer Dr David O'Reilly | Director of Scientific Research Jennie Galbraith | Head of ESG 4#5Building A Better Tomorrow™ Committed to transforming and reducing our health impact 77 Multi-Category - Building strong the greatest potential to reduce harm and create value 2 consumer-led global brands with purpose 3 vuse World-Class science substantiates our reduced risk portfolio* *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 Building on strong ESG foundations to create shared value for all stakeholders 5 5#61 Committed to transforming and reducing our health impact BAT A BETTER TOMORROW FI#7Committed to Building A Better Tomorrow™ Our Purpose To reduce the health impact of our business A BETTER TOMORROW™ BAT A BETTER TOMORROW Our Commitment To provide adult consumers with a wide range of enjoyable and less risky products To encourage smokers to switch completely to scientifically-substantiated reduced-risk alternatives* *Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive. 7#8Harm Reduction and ESG central to our Strategy (Н E Reducing the HEALTH impact of our business Excellence in ENVIRONMENTAL management 50 million consumers of non-combustible* products by 2030 S GI Delivering a positive SOCIAL impact Creating value for all our stakeholders Robust corporate GOVERNANCE £5bn New Category Revenue by 2025 Carbon CO₂ neutral by 2030** BAT A BETTER TOMORROW Eliminate unnecessary single- use plastic & all plastic packaging recyclable by 2025** *Non-combustible consumer definition. See Appendix A2. ** Environmental targets, carbon neutral is scope 1 & 2. See Appendix A1. ^ Reusable, recyclable or compostable 8#9Delivering Our Purpose is Transforming BAT From Cigarettes Declining Volume Growing Value A BETTER TOMORROW™ To BAT A BETTER TOMORROW Multi-category CPG Nicotine & Beyond* Growing Volume & Value *Beyond refers to Wellbeing & Stimulation Beyond Nicotine. Target market for consumer acquisition is existing adult smokers/nicotine/beyond nicotine users. 9#10A Strategy that Starts with the Consumer A Unique Consumer-Centric Multi-Category model Consumer Moments A PRISM Proprietary Intelligence Segmentation Methodology Digitally Embedded RGM* Consumer Digital Insights Consumer Centricity I Product Satisfaction Index Multi-Category Portfolio BAT A BETTER TOMORROW MAPS Market Prioritisation System Product Boundaries * Revenue Growth Management 10#11Clear Ambitions for each New Category Brand Vapour "' vuse Global leader with a clear pathway to profitability THP glo Fastest growing THP brand** powered by innovation BAT A BETTER TOMORROW Modern Oral * Value share basis. ** Volume share basis. Vuse brand represents c. 80% of FY20 vapour revenue. Continue to migrate remaining Vype brands during 2021. Velo brand represents over 50% of FY20 Modern Oral markets. Continue to migrate remaining EPOK, LYFT brands during 2021. VELO Global leader leveraging our superior products 11#12Confident in Delivering Shared Stakeholder & Shareholder Value 50mn Non- Combustible Consumers** by 2030 £5bn New Categories Revenue by 2025 3-5% Revenue Growth* Profit From New Categories by 2025₁ BAT A BETTER TOMORROW High Single Figure EPS growth* Adjusted diluted (post COVID) Growth and Transformation Towards A Better Tomorrow™ * Medium-term growth targets. On a constant rate basis. See Appendix A3. ** Non-Combustible consumer definition: see Appendix A2. ^Market contribution basis: Profit from the sales of brands after deduction of directly attributable costs (including marketing) and before allocation of overheads 12#132 Multi-Category - the greatest potential to reduce harm and create value BAT A BETTER TOMORROW#14Strategic Rationale for Multi-Category Approach Consumers Market taste profiles Regulation BAT A BETTER TOMORROW MULTI-CATEGORY STRATEGY 17 BAT A BETTER TOMORROW Opportunity to reduce harm Commercial opportunity Resilience to regulation Maximises Ability to Switch Smokers, Reduce Harm and Create Value 14#15A Large, Growing Multi-Category Opportunity 2015 33mn Net Consumers VAPOUR TRAD ORAL THP 2020 -79mn Net Consumers** MODERN ORAL 2025* BAT A BETTER TOMORROW ~123mn Net Consumers** ~£4bn Industry revenue ~£16bn Industry revenue ~£29bn Industry revenue * 2025 estimate based on internal estimates. Industry Incidence Study & BAT internal estimates, excluding India and China. 2015 BAT revenue pre-RAI acquisition in 2017. **Total Non-Combustibles Net Consumers excludes-Poly users. Poly-usage across non-combustible products. *** Non-Combustible consumer definition. See Appendix A2. 15#16Our Multi-Category Strategy is Accelerating our Tobacco Consumer Acquisition +0.6m 1020 +3.8m Non-Combustible* Consumers over last 4 Quarters +1.4m +0.5m +0.8m +1.1m 4Q20 2Q20 3Q20 Growth in Non-Combustible* Consumers Growth versus same period last year (SPLY). Source: Company data. * Non-Combustible consumer definition. See Appendix A2. 1Q21 BAT A BETTER TOMORROW 14.9m Consumers of Non-Combustibles* Q1 2021 50m Consumers of Non-Combustibles* by 2030 16#17In Pioneer New Category Markets Progress is Accelerating + 63% c.15% of our Developed Market* Revenue 42% 28% Non-Combustible products revenue % # 27% Note: % Revenue by market FY2020 *OECD excluding Australia and Turkey where Non-Combustible products are unavailable Our Transformation is Well Underway BAT A BETTER TOMORROW 13% 17#183 Building strong consumer-led global brands with purpose BAT A BETTER TOMORROW -vuse#19A PRISM Proprietary Intelligence. Segmentation Methodology Leveraging our Insights, Strengths & Capabilities to Encourage Smokers to Switch 3 Key Consumer Motivations drive 75% of the decision to switch from Cigarettes Satisfaction Reduced Risk* Image & Identity ↑↑↑ Multi-Category Portfolio * Reduced Risk Products: Assuming a complete switch from cigarette smoking. These products are not risk free and are addictive. Source: New Categories Track, KANTAR Category Conversion Modelling Science & R&D Global Brands BAT A BETTER TOMORROW "' vuse glo VELO 19#20Driving Strong Share Growth across all New Categories "' चाल Vype YTD Apr 29.8% 74.7% 19.1% 43.2% 59.0% YTD vs. FY 20 +4.9pp +28.5pp +4.3pp +11.7pp +9.3pp glo DO YTD Apr 6.2% 1.7% 1.4% 2.7% 1.5% YTD vs. FY 20 +0.8pp +1.1pp +1.0pp +1.8pp +0.7pp VII VELO +++ YTD Apr 16.9% 6.7% 79.5% 54.9% 17.2% BAT A BETTER TOMORROW YTD vs. FY 20 +9.3pp +1.8pp +4.1pp +5.1pp +2.0pp Source: Share metrics defined in Appendix A4.1 US (Vapour) - Apr Marlin Total Vapour Value Share; 2 Canada - Apr Scan Data Total Vapour Value Share; 3 UK - Apr Nielsen Total Vype Vapour Value Share; 4 France - Apr Strator Total Vapour Value Share; 5 Germany - Apr Nielsen Total Vapour Value Share; 6 US (MO) - Apr Marlin Vol. Share of Total Modern Oral; 7 Sweden - Apr Nielsen Vol. Share of Total Oral; 8 Denmark - Apr Nielsen Vol. Share of Total Oral; 9 Switzerland - Apr Scan Data (excl Pronto, Migrolino Shell, SPAR and Other) Vol. Share of Total Oral; 10 Norway - Apr Nielsen Vol. Share of Total Oral; 11 Japan - Apr CVS-BC Vol. Share of FMC+THP+Hybrid; 12 Russia - National Apr IMS Act., PMI Reports & Nielsen KA Scan Data based Vol. Share of FMC+THP; 13 Italy - Apr Nielsen Vol. Share of FMC+THP; 14 Ukraine - Apr Nielsen Vol. Share of FMC+THP; 15 Romania - Apr Nielsen KA Vol. share of FMC+THP; 20#21Building powerful Global Brands P Indexed Brand Power Scores in Top 5 Markets 100 Q1'20 Brand Power 108 Q1'21 || Source: New Categories Track, KANTAR Brand Equity Modelling PURPOSE Makes lives better / adds genuine value glo Indexed Brand Power Scores in Top 5 Markets ATUM CAT 100 Q1'20 EXPERIENCE Brand delivers on its product promise + 118 Q1'21 + Leads the way - creative & disruptive INNOVATION COMMUNICATION Great ads, cut-through & salience LOVE Pride, loyalty & advocacy 100 BAT A BETTER TOMORROW Indexed Brand Power Scores in Top 5 Markets Q1'20 WIL VELO 113 Q1'21 21#22V Driving Significant Vuse Growth and Brand Power BAT A BETTER TOMORROW PURPOSE Carbon Neutral VAPE TOGETHER CARE TOGETHER THE FIRST GLOBAL CARBON NEUTRAL VAPE BRAND Vuse Environment CUT THE WRAP PACKAGING FEEL LIGHTER? WE'VE REMOVED OVER 4 MILLION BOTTLES WORTH OF SINGLE-USE PLASTIC. vuse INNOVATION Superior Products THE NEW ePOD 2 REDESIGNED TO POWER YOUR HUSTLE VUSE CHARGE BEYOND contains ha addict vuse This product contains nic which is a high addictive substance COMMUNI- CATION Engagement V Vuse LIMITED TUNE IN TO SOUNDS OF VUSE VUSE CHARGE BEYOND vuse This product contains nicotine which is a highly addictive substance EXPERIENCE Activation vuse RUDIMENTAL × vuse VUSE CHARGE BEYOND LOVE Brand Scale vuse YOUR Fee LIMITED TIME ONLY VYPE NOW S vuse 22#23glo First to world with THP Induction Heating glo I glo Hyper Improved Device Appeal Device Personalization (+50 options / combinations) Sensorial Customization (Base & Intense Boost modes) ½ time to first puff Our best THP product yet glo 23#24ΟΤΕΛ SMALL The pro NAME CHILE C MIX IT UP MIAMI Got VELO THANKS FOR SHOPPING CIRCLE K! Y519 Continued International Leadership and Strong US Momentum UNDERAGE SALE OWAN TUN VELO GET CRAFTY, PORTLANDS YOU'VE GOT VELO NICOTINE PRODUCTS YOU'VE GOT FREECOM FLAVOR YOU'VE GOT VELD WEBSITE RESTRICTED TO AGE 21+ NICOTINE CONSUMERS. <2021 MBI HCOTINE POUCHES EXPLORE THE RANGE beledigital WARNING: This product contains nicotine. Nicotine is an addictive chemical. MORE FLAVORS. MORE STRENGTHS. MORE VELO. . COCOB33D SFLAVORS 2 NICOTINE OPTIONS: 04 07 20 POUCHES PER CAN HYPER-LOCAL MARKETING Miami Wall scape Portland Online Advertising * Source: Company data Brand Equity Analysis (NC Track - Q1'21) ● ● DELIVERY IN EVERY CONSUMER MOMENT ● ● ● 'On-Demand' Education Retail Transformation 1:1 Engagement USA Brand Awareness at Parity with Market Leader* 11 T VELO 24#25New Category Growth Driven by Rapid Innovation BAT A BETTER TOMORROW T vype 2013 vype ECOpure E-LIQUID MADE IN THE UK disposable e-cigarette O * CAGR over 3 years ending FY20 glo Built in < 8 years OVA 07 Cinnamon WARNING: This product contains e is an nicotine. N e. Nicotine is a addictive chemical. OTEL PRODUCT OF Consumer Survey of A Dragonfruit WARNING: This product contains nicotine. Nicotine is an addictive chemical. 2021 OMAA 07 ******* 20 Nicotine Wintergreen WARNING: This product contains nicotine. Nicotine is an addictive chemical. TA New Categories Revenue + Spearmint WARNING: 07- ******* 20 Nestine This product contains nicotine. Nicotine is an addictive chemical. TUN Global Brands Superior Products Retail Experience & Online 07 ******* 20 Citrus Burst WARNING: This product contains nicotine. Nicotine is an addictive chemical. +43% 3-year CAGR* 2025/30 00 ? Continued innovation 25#26Social Acceptability We are exploring Beyond Nicotine: Leveraging Strengths in "On The Go Wellbeing & Stimulation" Beyond "On the Go Nicotine: Wellbeing & Stimulation" New Nicotine Categories Tobacco Less Usage Regain Additional Reclaiming consumer moments * Indicative assessment - assessment of Social Acceptance will be product specific میرا High growth & margin categories BAT strengths & capabilities Clear portfolio expansion boundaries I BAT A BETTER TOMORROW Reduced Health Impact Compared to Cigarettes BAT Global Marketing Reach Leveraging Delivery Platforms NEW CATEGORY GROWTH OPPORTUNITIES Strategic and Financial Attractiveness Science and Regulatory Expertise Positive Environmental Contribution- I 26#27Building an Ecosystem Beyond Nicotine Btomo>>>ow 12 investments closed to date ORGANIGRAM ● Ventures ● Health and Wellness R&D collaboration c. 20% associate investment Target areas: $ Functional products - e.g. Focus, Energize & Relax "' Vuse Science ● Sustainability ● BAT A BETTER TOMORROW Vuse CBD Test Ý Technology UK city pilot underway Test and learn 27#28Confident in Delivering Shared Stakeholder & Shareholder Value 50mn Non- Combustible Consumers** by 2030 £5bn New Categories Revenue by 2025 3-5% Revenue Growth* Profit From New Categories by 2025 * Medium-term growth targets. On a constant rate basis. See Appendix A3. ** Non-Combustible consumer definition: see Appendix A2. BAT A BETTER TOMORROW High Single Figure EPS growth* Adjusted diluted (post COVID) Growth and Transformation Towards A Better Tomorrow™ 28#294 World-Class Science substantiates our reduced risk portfolio BAT A BETTER TOMORROW 160/0.17 10/0.25 *Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive $40/065 160/0.17#30Most of the Harm from Tobacco is caused by Combustion Not Nicotine FDA Royal College of Physicians Nicotine without smoke Tobacco harm reduction A report by the Tobacco Advisory Group of the Royal College of Physicians April 2016 BAT A BETTER TOMORROW It's the other chemical compounds in tobacco, and in the smoke created by setting tobacco on fire, that directly and primarily cause the illness and death, not the nicotine. DR. SCOTT GOTTLIEB US FDA COMMISSIONER (JULY 2017) GG Nicotine is not...a highly hazardous drug. The main culprit is smoke and, if 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) 30#31● Understanding Nicotine* Naturally present in tobacco plants Extracted and purified to pharmaceutical grade Widely studied in clinical trials Scientific consensus recognises that nicotine is highly addictive but does not cause cancer¹,2,3 "Its effect is to make tobacco addictive rather than to cause cancer directly" WHO¹ "Current evidence does not support that nicotine is a human carcinogen" National Academies of Sciences, Engineering and Medicines4 BAT A BETTER TOMORROW N CH 3 "There is insufficient data to conclude that nicotine causes or contributes to cancer in humans" Surgeon General5 1.WHO's International Agency for Research on Cancer (IARC) 2. Royal College of Physicians. Nicotine without smoke: Tobacco harm reduction. London 2016. 3. https://www.cdc.gov/tobacco/data_statistics/sgr/50th-anniversary/index. html. 4. National Academies of Sciences, Engineering and Medicines 2018. Public Health consequences of e-cigarettes. 5. The Health Consequences of Smoking - 50 Years of progress. A report of the surgeon general 2014. +Nicotine is an addictive substance. We do not make health claims (express or implied) about our products in the US unless authorized by FDA to do so. 31#32Tobacco Harm Reduction recognised in Policy and Regulation in a number of countries "The closer the risks and exposures from the Reduced Risk Products are to cessation ...the more confident a regulator can be in the chances for net public health benefit" CLEARING SMOKE THE EVIDENCE BASED MEDICINE AND THE CHANGING NATURE OF HEALTH CARE OF ME Selle Standards Modified Risk oberts Produch 2001 2007 2012 -91* Science is informing Policy and Regulation globally Food and Drug Administration Public Health England BAT A BETTER TOMORROW National institute for Public Health & the Environment | £ & others *From US Institute of Medicine: Scientific Standards for Studies on Modified Risk Tobacco Products 2012. Other reports highlighted: Clearing the Smoke (nih.gov) 2001 and Evidence-Based Medicine and the Changing Nature of Health Care: 2007 IOM 32#33Evaluated Using a Multi-Disciplinary Risk Assessment Framework OI Emissions What is in the vapour/aerosol? Behavioural Sciences X Exposure What happens when exposed to these emissions? Chemistry Biological Sciences BAT A BETTER TOMORROW Risk What is the long-term health risk? Clinical Studies Population Studies 33#34A Portfolio of Non-Combustible solutions Combustibles 100%- High TOBACCO & COMBUSTION Toxicants in Emissions *As stated by: Dr. Scott Gottlieb, US FDA Commissioner (July 2017), and UK Royal College of Physicians, Nicotine without smoke: Tobacco harm reduction (2016) + Nicotine is an addictive substance. We do not make health claims (express or implied) about our products in the US unless authorized by FDA to do so THP 10% BAT A BETTER TOMORROW Most of the Harm from Tobacco is caused by Combustion Not Nicotine** Vapour Bil.c Low Modern Oral NRT ee + 0% NO COMBUSTION 34#35Reduction in Toxicant Exposure Similar to vuse Cessation* Mean CO (ppm) 30 25 20 15 10 5 Carbon Monoxide Baseline Day 2-3 Day 3-4 Day 4-5 Day 5-6 -Cigarette Vuse Cessation Day 6-7 Mean SPMA (ng/24hrs) 7,000 6,000 5,000 4,000 3,000 2,000 1,000 O Baseline Cooney S. The Science of Potentially Reduced Risk Tobacco and Nicotine Products. Asian College of Neuropsychopharmacology 12 October 2019 *Vuse/Vype is not risk-free and contains nicotine, an addictive substance. Benzene Day 2-3 Day 4-5 BAT A BETTER TOMORROW -Cigarette Vuse Cessation Day 6-7 35#36glo 0% -25% -50% -75% -100% Biomarker of Potential Harm Responses Similar to Cessation in 90 day study* Magnitude of change relative to cessation Inflammation Cardio Cardio Lung Lung Lung Oxidative Cardio Stress Function 1 Function 2 Function 3 Function 1 Function 2 Function 3 glo Target zone Carcinogenesis BAT 100% = A BETTER TOMORROW Biologically Significant Equivalent To Cessation Nathan Gale, BSc, Michael McEwan, PhD, Oscar M Camacho, MSc, George Hardie, MSc, James Murphy, PhD, Christopher J Proctor, PhD. Changes in Biomarkers of Exposure on Switching From a Conventional Cigarette to the glo Tobacco Heating Product: A Randomized, Controlled Ambulatory Study. Nicotine & Tobacco Research, Volume 23, Issue 3, March 2021, Pages 584-59. *gloTM is not risk-free and contains nicotine, an addictive substance. 36#37VI Velo* has Toxicant Levels comparable to VELO Cessation Products (NRT) and lower than Snus -99% Toxicants vs. Cigarettes¹ -76% Toxicants vs. Snus² BAT A BETTER TOMORROW Comparable toxicant profile to NRT³ 1. D.M. Burns et al.; Tob. Control, 17 (2008), pp. 132-141; 2 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. 3. Cessation products refer to NRT. Azzopardi D, Liu C, Murphy J. (2021). Chemical characterization of tobacco-free "modern" oral nicotine pouches and their position on the toxicant and risk continuums. Drug and Chemical Toxicology * VELO is not risk-free and contains nicotine, an addictive substance. Velo is not a medically licensed cessation device and is not necessarily effective in supporting smoking cessation. 37#38Extensive Scientific Substantiation support our products as Reduced Risk* glo vuse Emissions : -99%¹ Toxicology: -99%¹ Our data is published in 71 peer-reviewed manuscripts Emissions : - 90% to - 95%² Toxicology: -95%² Our data is published in 65 peer-reviewed manuscripts BAT A BETTER TOMORROW RM VELO >30 yrs of studies shown 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* 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. *Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive. 38#39Key External Bodies also Support Reduced Risk* BAT / Exposure Nature of all Three New Categories A BETTER TOMORROW Vapour ASH (Action on Smoking & Health)¹ Public health charity "Compared to tobacco products, electronic cigarettes are significantly safer" GOVT. OF CANADA² "Switching from tobacco cigarettes to vaping products will reduce a person's exposure to many toxic and cancer-causing chemicals" NEW ZEALAND MINISTRY OF HEALTH³ "Smokers switching to vaping products are highly likely to reduce their health risks and for those around them" THP FOOD AND DRUG4 ADMINISTRATION £ These particular products could help addicted adult smokers transition away from combusted cigarettes and reduce their exposure to harmful chemicals NATIONAL INSTITUTE FOR PUBLIC HEALTH & THE ENVIRONMENT The use of Heated Tobacco Products is harmful to health, but probably less harmful than smoking tobacco cigarettes FEDERAL INSTITUTE FOR RISK ASSESSMENT The herein confirmed reductions of relevant toxicants by about 80-99% are substantial Modern Oral BfR GERMANY5 The herein confirmed reductions of relevant toxicants by about 80-99% are substantial FOOD AND DRUG6 ADMINISTRATION Using Snus instead of cigarettes puts you at a lower risk of mouth cancer, heart disease, lung cancer, stroke, emphysema, and chronic bronchitis. US EXPERT? SNUS products are much cleaner and less hazardous than cigarettes. Their use could only reduce harm to smokers if they switch entirely to these products 1. ASH Briefing Note. 2. Supporting the Sustained Transition of Smokers of Conventional Cigarettes to Vaping Products - CIHR (cihr-irsc.gc.ca) 2019. 3. Position statement on vaping | Ministry of Health NZ 2020. 4 FDA, 07 July 2020. 5. BfR Preliminary health assessment of nicotine pouches, dated 30 March 2021. 6. FDA Authorizes Modified Risk Tobacco Products | FDA Oct 2019. 7. Benowitz, N. L. (2011). 'Smokeless Tobacco as a Nicotine Delivery Device: Harm or Harm Reduction?' Clinical Pharmacology & Therapeutics 90, no.4: 491-93. doi:10.1038/clpt.2011.191 * Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive. 39#40Beyond Nicotine: Industry Leading Safety Science for CBD In vitro studies 19 vuse CBD ePod CBD Pod USER GUIDE WELCOME TO VUSE ARE YOU READY TO CHARGE BEYONDO? NOT FOR EXPORT 18+ CBD Genotoxicity govype.com/VuseCBD Read before use. Keep the user guide for future reference CBD considered non-genotoxic CBD consumption Study In vivo studies 22 MAR VALIDCARE'S CLINICAL STUDY REPORTS PRELIMINARY RESULTS OF CBD LIVER SAFETY Posted on March 22, 2021 in Press by Scott Hardin BAT A BETTER TOMORROW CBD Inhalation Study Foundational inhalation study completed Completed two x clinical studies of consumption • Delivered new data and insights on consumer usage Creating a new, higher standard for recreational consumer products Liver Damage Study Designed to address FDA question Showed no difference between oral CBD & non-CBD users in US 40#41Underpinned by World-Class Capabilities in Science and Innovation 60+ Years of R&D 1500 R&D specialists 2x R&D spend since 2017* 114 Peer-reviewed articles and manuscripts published in New Categories BAT A BETTER TOMORROW 12 BTVentures investments adding new capabilities Accelerating our transformation through attracting new talent from a wide range of industries Representative 2017 basis with a full 12 months of US acquisition, Reynolds 41#425 Building on strong ESG foundations to create shared value for all stakeholders BAT A BETTER TOMORROW#43Creating Shared Value through ESG Our Sustainability Agenda ƠI Deep-dive into ESG issues Ex BAT A BETTER TOMORROW How we manage ESG 43#44Harm Reduction is the Cornerstone H E CONSUMER CHOICE Reducing the HEALTH impact of our business Excellence in ENVIRONMENTAL management • Climate change Water • Biodiversity & Afforestation Waste 50 million consumers of non-combustible* products by 2030 S H WORLD-CLASS SCIENCE Delivering a positive SOCIAL impact Human rights • Farmer livelihoods • Health and safety People and culture ● £5bn New Category Revenue by 2025 STANDARDS & REGULATION Creating value for all our stakeholders Carbon CO₂ neutral by 2030** Robust corporate GOVERNANCE Business ethics Responsible marketing Regulation and policy engagement BAT A BETTER TOMORROW Eliminate unnecessary single- use plastic & all plastic packaging recyclable by 2025** *Non-combustible consumer definition. See Appendix A2. ** Environmental targets, carbon neutral is scope 1 & 2. See Appendix A1. ^ Reusable, recyclable or compostable 44#45E S G ESG: Strong Progress and Commitment to Transparent Reporting on our Journey Target Excellence in ENVIRONMENTAL management Delivering a positive SOCIAL impact Robust corporate GOVERNANCE ● ● ● ● ● ● Carbon neutral for Scope 1 & 2 by 2030 100% of plastic packaging reusable, recyclable or compostable by 2025 Zero child labour and forced labour by 2025* 100% suppliers subject to human rights due diligence** 100% Standards of Business Conduct (SOBC) adherence 100% Youth Access Prevention (YAP) Guidelines adherence BAT A BETTER TOMORROW 2020 Progress -37% vs 2017 baseline 82% in 2020 99.7% farms monitored for child labour *In our tobacco supply chain; child labour definition based on ILO definition. ** All our product materials and high-risk indirect service suppliers (non-agricultural suppliers) to have undergone at least one independent labour audit within a three-year cycle by 2025 100% employees completed SoBC training • 100% markets aligned with YAP Guidelines#46Deep Dive into Four Key Areas Tackling climate change Eliminating child labour Robust compliance BAT A BETTER TOMORROW Responsible marketing#47We are Building our Capabilities to ensure we Succeed in Reducing our Scope 1 & 2 emissions 37% 8 All 1 2 3 4 Reduce emissions On-site renewables Renewable energy certificates & Long term power agreements Carbon offset credits to close gaps BAT A BETTER TOMORROW reduction in scope 1 & 2 emissions v 2017 countries have factories with solar energy generation* sites incorporate green power purchases Carbon Neutral Scope 1 & 2 by 2030 *On-site solar energy generation added in 2020 47#48We are Building our Capabilities to ensure we Succeed in Reducing our Scope 3 emissions Non-leaf Purchased Goods & Services Top 30 suppliers engaged with to improve delivery against scope 3 targets, representing over 66% of our direct spend CDP SUPPLIER ENGAGEMENT LEADER 2020 Leaf Purchased >30% reduction in fuel use with upgraded curing barns** Other Scope 3* BAT A BETTER TOMORROW All new product developments include life-cycle analysis Carbon Neutral Scope 3 by 2050 *Other Scope 3 includes capital goods, use and disposal of sold products, end of life treatment, and other categories including transportation, business travel and commuting **Upgrading curing barns to automated 'loose leaf models can enable at least a 30% reduction in fuel use. These innovative curing technologies have now been introduced to our contracted farmers in five countries. 48#49We are Building our Capabilities to ensure we Succeed in Tackling Child Labour 2|3|4|5|6| ROBUST MONITORING AND REMEDIATION PROCESS Strong Policies Risk Mapping Farm Visits Identification 5 Remediation Follow-up All farmers visited monthly 98.5% incidents resolved 3 BAT A BETTER TOMORROW 0.5% incidence ² Our strategy is aligned to UNITED NATIONS GUIDING PRINCIPLES ON BUSINESS & HUMAN RIGHTS 1. Our field technicians visit our contracted farmers approximately once a month during the growing season. 2. % of farms with incidents of child labour 3. based on number of child labour incidents identified (proportion reported as resolved) 49#50We are Building our Capabilities to ensure we Succeed in Tackling Child Labour ia [[ ] 8 [ LONGER-TERM FOCUS ON ROOT CAUSES Human rights assessments Training and awareness raising Enhancing livelihoods Partnerships and communities 390,000+ attendances at human rights farmer training 'Leader' BAT A BETTER TOMORROW Up to 20% yield increase with new seed varieties 9.2/10 score vs. Industry Average of 5.6 The Global Child Forum's Overall Children's Rights Benchmark Score¹ 12019 Corporate Sector and Children's Rights Benchmark 50#51We have a Rigorous Approach to responding to reports of Potential Human Rights breaches ● ● Engage to understand and gather information Assess facts and develop action plan at highest levels of BAT Thorough internal audit or external review Review of lessons learnt and in depth evaluation of policies 3 strikes policy for farms identified with child labour 1 Work with and educate farmers 2 3 Formal written warning Cease working with farmer BAT A BETTER TOMORROW Outcomes include: Six contracts ceased with farmers in 2020 after three strikes for child labour Independent review of supply chain in Bangladesh Unannounced visits to farms in Italy and Zimbabwe Human rights impact assessments in India, Indonesia and Mozambique with two more planned by end 2021 Risk mitigation enhanced farmer training & monitoring, worker interviews, community-based programmes etc. 51#52Continuously Strengthening Our Business Conduct & Compliance 2016 RENEWED BOARD COMMITMENT Policies & Procedures Top mgmt. focus 2017 BUSINESS CONDUCT & COMPLIANCE TEAM FORMED ➤ Oversight, autonomy & resources Whistleblowing hotline 2018 STRENGTHENED COMPLIANCE PROGRAMME Risk management Anti-Bribery & Corruption focus Training & Comms 2019 EMBED IN ORGANISATION ➤ Commitment from middle mgmt. ► 3rd Parties focus > Global Integrity Pledge 2020 DIGITAL, AUTOMATION, 3RD PARTY RISKS > Investigations & case mgmt. Incentives, discipline & enforcement > M&A BAT A BETTER TOMORROW 2021/22 AUDIT, ASSURANCE & HARNESSING DATA Data analytics Automation & Integration 3rd Party life- cycle mgmt. Delivery with Integrity 52#53Responsible Marketing to Adult Tobacco/ Nicotine Consumers International Marketing Principles (IMP) Introduced in 2001 Responsible Accurate Targeted at adults Transparent Compliant with law Refreshed again in 2020 Global, even when stricter than local laws All marketing materials subject to review and approval by internal legal or against applicable guidance Youth Access Prevention (YAP) BAT A BETTER TOMORROW Strengthened YAP approach Mandatory provision of point-of-sale materials* Monitored through internal audit, and overseen by Audit Committee H1 '21 Vuse Age- Verification Pilots Only partner with 3rd parties where vast majority of audience is adult *Unless a government ban is in place 53#542021: Strong ESG recognition REFINITIV FT CLIMATE LEADERS 2021 FINANCIAL TIMES statista SOCIAL QUALITYSCORE 1 HIGHEST RANKED BY ISS ESG R 91/100 FT LEADER IN DIVERSITY FINANCIAL TIMES statista 2021 WDi Top 10% Workforce Disclosure Initiative Sustainability Award Gold Class 2021 S&P Global Prated by top EMPLOYER 2021 RATEMYPLACEMENT CERTIFIED EXCELLENCE IN EMPLOYEE CONDITIONS NUE AWARDS Top Medium-sized Undergraduate Scheme WINNER 2021 GLOBAL BAT A BETTER TOMORROW E BEST HUMAN RIGHTS CAMPAIGN FOUNDATION PLACES TO WORK 2021 for LGBTQ Equality 100% CORPORATE EQUALITY INDEX 54#55H E S G ESG is Embedded across our Business MARKETING LEX* Responsible marketing OPERATIONS Circular economy Regulation Data privacy Climate change Water and waste Sustainable agriculture Human rights Reducing the health impact of our business Farmer livelihoods Health & safety R&D Stakeholder engagement Leaf R&D KBP vaccines development HR Business ethics People & culture Diversity & inclusion Gender pay Executive remuneration Workforce engagement FINANCE Climate change financial disclosures Tax transparency IR/Shareholder/ Insurer engagement BAT A BETTER TOMORROW IDT Climate change Sustainable agriculture We have a fully costed glide path to meet our targets Farmer livelihoods Cyber security *Legal and External Affairs 55#56Strong Pipeline of ESG Focused Innovation CARBON NEUTRAL VALIDATED BY VERTIS Vuse WE PLEDGED IT. WE DID IT. THE FIRST GLOBAL CARBON NEUTRAL VAPE BRAND SRA on the VUSE CHARGE BEYOND (10) vuse vuse POD RETURN DROP THE POD Vuse RETURN YOUR USED PODS AND DEVICES. WE'LL RECYCLE THEM FOR YOU. 1 THE POD CHOOSE VUSE AND CHARGE BEYOND V' vuse 'NO PLASTIC' PACKAGING ahol vuse Thank You for choosing Vu Discours glo Our planet matters Cherry guld Pods This product contains nicotine which is a highly addictive substance Flease recycle me. I'm dreaming of a big comeback. glo DEVICE RECYCLING DON'T BIN IT, RETURN IT. more WasteNotGetMore O DON'T BINIT BAT A BETTER TOMORROW VII VELO WIDELY RECYCLABLE CAN TA Berry Frost Nicotine Pouches 56#57ESG is a Value Add activity $ Efficiencies and removals will results in savings Value Add Brands with purpose We expect to see efficiencies of scale Costs are absorbed in existing ways of working Costs BAT 88 Employee attraction and retention A BETTER TOMORROW 57#58See our ESG Reporting Suite for more information Journey to A Better Tomorrow Human Rights Report 2020 BAT ATTER TONDON BVL Gender Pay Report 2020 BAT BATH BVL Modern Slavery Stat 2020 BAT NET TOMORROW BAT BVL A Better Tomorrow BAT BVL BAT https://www.bat.com/sustainability ESO Report 2020 BAT A BETTER TOMORROW 58#59We have put Sustainability Front and Centre with Strong Ambitions Reducing the HEALTH impact of our business E Excellence in ENVIRONMENTAL management H 50 million consumers of non-combustible* products by 2030 S Delivering a positive SOCIAL impact KI G Robust corporate GOVERNANCE £5bn New Category Revenue by 2025 *Non-combustible consumer definition. See Appendix A2. CONSUMERS SOCIETY CREATES SHARED VALUE FOR EMPLOYEES SHAREHOLDERS Carbon CO₂ neutral by 2030** BAT A BETTER TOMORROW OUR PURPOSE CAB A BETTER TOMORROWT Eliminate unnecessary single- use plastic & all plastic packaging recyclable by 2025** Environmental targets, carbon neutral is scope 1 & 2. See Appendix A1. ^ Reusable, recyclable or compostable 59#60Appendix A1: Environmental Targets Targets cover: climate change, water and waste, sustainable agriculture. Full details are available from the ESG Report https://www.bat.com/group/sites/UK_9D9KCY.nsf/vwPagesWebLive/DOAWWEKR/$file/BAT_ESG_Report_2020.pdf. BAT A BETTER TOMORROW A2: Non-Combustible consumers The number of consumers of Non-Combustible products is defined as the estimated number of Legal Age (minimum 18 years, US: 21 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 consumer tracking (utilising studies conducted by third parties including Kantar). The number of Non-Combustible products consumers is used by management to assess the number of consumers regularly using the Group's New Category 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. A3: Constant currency Constant currency-measures are calculated based on a re-translation, at the prior year's exchange rates, of the current year's results of the Group and, where applicable, its segments. A4: 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). Value share: The retail sales value of the product sold as a proportion of total retail sales value in that category. 60