#1Strong Brands Driving New Category Acceleration Barclays Consumer Conference 2021 Jack Bowles - Chief Executive BAT A BETTER TOMORROW#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. In particular, certain statements on slides 9 and 10. 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. 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#3BAT A BETTER TOMORROW 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 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#4Strong Brands Driving New Category Acceleration Barclays Consumer Conference 2021 Jack Bowles - Chief Executive BAT A BETTER TOMORROW#5Our Established Multi-Category Strategy is Working BAT A BETTER TOMORROW Consumer Moments A PRISM Fre Segrees Machadolog Digitally Embedded RGM6 Consumer Digital Insights 18: Consumer Centricity Product Satisfaction Index Multi- Category Portfolio MAPS Product Boundaries Se New Category revenue¹ +50%; share gains in all three categories² 16.1m Non-Combustible consumers, our highest growth +2.6m³ Each New Category grew share ≥280bps in top markets² Volume growth of ≥70% in all three New Categories Brand power scores4 up across all three New Categories Vuse now No.1 Global Vapour brands 1 Growth at constant rates versus H1 '20. See Appendix A2. 2 Value share gains in Vapour, and Volume share gains in THP and Modern Oral. For more information on our top markets, see Appendix A8. 3 Consumers of Non-Combustible products definition: See Appendix A6; +2.6m is BAT's highest ever Non-Combustible product consumer acquisition in a half year. 4 Brand power scores source: New Categories Track, KANTAR Brand Equity Modelling. 5 Source: T5 Measured Channels Total Vapour Value Share weighted by Total Vapour Offtake Value. US Marlin, Canada Scan, UK Nielsen, France Stator & Germany Nielsen. Revenue Growth Management tool. 5#6Strong H1 2021 results all +8.1% Group Revenue* Combustibles Price/Mix** +50% +4.3% +10bps +5.4% New Category Revenue* Cigarette & THP Value Share^ +1.5% Combustibles BAT Volumes al Share growth YTD May 21 versus FY20. Source: Company data. * On a constant rate basis. See Appendix A2. ** Price/mix defined in Appendix A4. ^ See Appendix A3. BAT A BETTER TOMORROW Adjusted Profit* from Operations +20bps +6.1% Cigarette & THP Volume Share^ EPS* Adjusted Diluted 6#7We are Building Strong Brands of the Future 19 vuse Revenue** up +59% Ovuse.com vuse Value share: 32% +610bps Consumers^ +0.9m glo Revenue** up +38% neo neo BLEZAVA УПОТРЕБЛЕНИЕ TAGAKA BPERUT BALLEMY ЗДОРОВЬЮ Olya 10+ LMTD EDTN glo™ hyper+ A ОЛЬГА БУЗОВА BUZ UZZY Buzzpop op Buzzpop tpop Buzzp Puzzpop Buz. Buzzpop B p Buzzpop oop p Volume share: 17% +320bps Consumers^ +1.2m BAT A BETTER TOMORROW VELO Revenue** up +63% $99% LESS TOXICANTS* 100% VELO ENJOYMENT. MOVE ON TO HANDS-FREE VELO NICOTINE POUCHES. YOU'VE GOT VELO Volume share: 40% +280bps Consumers^ +0.7m 7 * To read the Velo advertisement disclaimer in full, please see Appendix A7. ** Revenue growth at constant rates vs H1 '20. See Appendix A2. Market share moves in our top markets versus FY 2020. For more information on these markets, see Appendix A8 Vuse brand represents c.90% of HY21 vapour revenue. Continue to migrate remaining Vype brands during 2021. Velo brand represents over 50% of HY21 Modern Oral markets. Continue to migrate remaining EPOK, LYFT brands during 2021. Share definitions see Appendix A3. ^ Consumer numbers growth versus FY20. Source: Company data. See Appendix A6. Target market for acquisition is existing adult smokers/nicotine users. Category totals sum to 2.8m, rather than 2.6m due to growth in poly-usage across Non-Combustible products of 0.2m in H1, up to 1.9m.#8We are Digitalising the Whole Business at Speed Transforming our relationships with consumers via digital 7 PO 12.1m Contactable Adult New Category Consumers Driving value through +58% vs 1H20 Strategic*** own e-comm revenue +142% vs 1H20 Increase in social media followers* digital >75% of Group revenue covered by Revenue Growth Management (RGM) BAT A BETTER TOMORROW #1 across T5** Branded search traffic for Vuse >75% of New Category investment covered by Marketing Spend Effectiveness (MSE) * Across age-restricted social media ** Top 5 vapour markets: US, Canada, UK, France, Germany. T5 represent c.75% of Vapour industry revenue (closed-systems). Vuse brand represents c.90% of HY21 vapour revenue. Continue to migrate remaining brands during 2021. Data source: Similar Web. *** Strategic revenue relates to the revenue from the Group's strategic brands. 8#9We are Rapidly Transforming the Business and Building A Better Tomorrow™ 1 In H1 21 H E A BETTER TOMORROW™" Reducing the HEALTH impact of our business Excellence in ENVIRONMENTAL management S Delivering a positive SOCIAL Impact Robust corporate GOVERNANCE Quest Transforming the business rapidly: 12% of Group revenue now in Non-Combustibles¹ Further opportunities Beyond Nicotine ● BAT A BETTER TOMORROW ● ESG is at the core of our strategy: 3rd highest ESG-rated in FTSE100 (Refinitiv) Quest enabling the Enterprise of the Future: Quantum delivering 12 months ahead of plan 9#102021 is a Pivotal Year Accelerating New Category revenue growth Reducing New Category impact on margin BAT A BETTER TOMORROW Reducing leverage to c.3x Adj. Net Debt/ Adj. EBITDA- * Adjusted net debt to adjusted EBITDA at current rates. See Appendix A1. ** On a constant rate basis. See Appendix A2. *** Adjusted Diluted EPS on a constant rate basis. See Appendix A1 & A2 * On Track for Full Year Guidance: >5% Revenue Growth** | Mid-Single Figure EPS Growth*** 10#11Delivering Our Purpose is Transforming BAT From Cigarettes Declining Volume Growing Value 50 million consumers of Non-Combustible** products by 2030 A BETTER TOMORROW™ £5bn New Category revenue by 2025 Creating value for all our stakeholders 团 CO₂ Multi-category CPG Nicotine & Beyond* To Growing Volume & Value Carbon neutral by 2030*** Ĉ BAT A BETTER TOMORROW Eliminate unnecessary single-use plastic & all plastic packaging recyclable by 2025*** * Beyond refers to Wellbeing & Stimulation Beyond Nicotine. ** Consumers of Non-Combustible products definition. See Appendix A6. *** Environmental targets, carbon neutral is scope 1 & 2. See Appendix A5. ^ Reusable, recyclable or compostable. 11#12Strong Brands Driving New Category Acceleration Barclays Consumer Conference 2021 Jack Bowles - Chief Executive BAT A BETTER TOMORROW#13Appendix 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. 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). A5: 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/vwPages WebLive/DOAWWEKR/$file/BAT_ESG_Report_2020.pdf?open&v=1 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: Velo advertisement disclaimer (slide 7) This product is not risk-free and contains nicotine, an addictive substance. Comparison based on an assessment of smoke from a scientific standard reference cigarette (approx. 9mg tar) and components released during use of a Velo pouch, in terms of the average of the nine harmful components the WHO recommends to reduce in cigarette smoke. 18+ only (or higher, depending on jurisdiction). This product contains nicotine and is addictive. A8: Top New Category markets Vapour value share across Top 5 vapour markets: US, Canada, UK, France, Germany. T5 represent c.75% of Vapour industry revenue (closed-system). Glo volume share across Top 9 markets: Japan, South Korea, Russia, Italy, Germany, omania, Ukraine, Poland and Czech Republic. T9 represent c.90% of THP industry revenue. Modern Oral Volume share across Top 5 markets: US, Sweden, Denmark, Norway, Switzerland and now excludes Germany. T5 represent c.82% Modern Oral industry revenue. 13