#1N BAT BATI Enterprise of the Future Science and ESG Accelerating our Transformation A BETTER TOMORROW X Dr David O'Reilly | Director of Scientific Research Jennie Galbraith | Head of Environment, Social and Governance Y Hany#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 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 Our products as sold in the US, including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products without regulatory clearance. 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#4Committed 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. 4#5Delivering Our Purpose is Transforming BAT From Cigarettes & Declining Volume Growing Value A BETTER TOMORROW™ To Building A Better Tomorrow™ BAT Multi-category CPG Nicotine & Beyond* & A BETTER TOMORROW Growing Volume & Value *Beyond refers to Wellbeing & Stimulation Beyond Nicotine. Target market for consumer acquisition is existing adult smokers/nicotine/beyond nicotine users. 5#6Most 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 GC 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. לל DR. SCOTT GOTTLIEB US FDA COMMISSIONER (JULY 2017) GC 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) 6#7Tobacco 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"* INSTITUTE OF MEDICINE CLEARING THE SMOKE GASE FOR TOBACCO HARM REDUCTION 10- THE LEARNING HEALTHCARE SYSTEM SERIES 2007 IOM ANNUAL MEETING SUMMARY EVIDENCE-BASED MEDICINE AND THE CHANGING NATURE OF HEALTH CARE INSTITUTE OF MEDICINE Scientific Standards FOR STUDIES ON Modified Risk Tobacco Products TUTE OF MEDICINE 2001 2007 2012 Science is informing Policy and Regulation globally BAT A BETTER TOMORROW Food and Drug Administration Public Health England | £ 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 7#8Key enablers of Tobacco Harm Reduction D Consumer choice k's World-class science BAT A BETTER TOMORROW 0 Standards & regulation Tobacco Harm reduction is at the heart of our ESG strategy 8#9Our Strategy Starts with the Consumer Consumer Moments MAPS Digitally Embedded RGM* Multi-Category Portfolio Consumer Centricity b3 Product Boundaries Consumer Digital Insights 13 A PRISM Paga Product Satisfaction Index A Unique Consumer-Centric Multi-Category model BAT A BETTER TOMORROW Revenue Growth Management 9#10A Large, Growing Harm Reduction Opportunity BAT A BETTER TOMORROW Non- Combustibles*** 13.5mn Consumers*** 17% Revenue & Consumers Share^ MODERN ORAL THP 2020 TRADITIONAL ORAL VAPOUR -79mn Net Consumers** THP MODERN ORAL 2025* ~123m n Net Consumers** TRAD ORAL BAT A BETTER TOMORROW VAPOUR Working for A Better Tomorrow™ for 1.1bn Smokers 2025 estimate based on company data. Industry Incidence Study & BAT internal estimates, excluding India and China **Total Non-Combustibles Net Consumers excludes-Poly users to avoid double- counting. Poly-usage across non-combustible products. *** Non-Combustible consumer definition. See Appendix A2. ^ BAT share of revenue and consumers as a % of 2020 industry estimates 10#11Strong, Global, Brands in All Three Categories #1 VAPOUR "' vuse 张 Scientifically-Substantiated #2 #2 THP glo COO ● #1 VIII VELO BAT MODERN ORAL ++ ++ A BETTER TOMORROW #3 Share positions based on value share of vapour and volume share of THP and Modern oral. 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. 11#12Underpinned by World-Class Capabilities in Science and Innovation 60+ Years of R&D 2x R&D spend 1500 R&D specialists 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 12#13Evaluated 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 Clinical Studies A BETTER TOMORROW Risk What is the long-term health risk? Population Studies 13#14Most of the Harm from Tobacco is caused by Combustion Not Nicotine* Combustibles¹ 100%- High TOBACCO & COMBUSTION Toxicants in Emissions THP 10% BAT A BETTER TOMORROW Vapour è il.c Low Modern Oral 000 NRT 00 + 0% NO COMBUSTION Our Non-Combustible Products are proven to produce far less toxicants¹ 1 Relates to standard reference cigarette. *As stated by: Dr. Scott Gottlieb US FDA Commissioner (July 2017), and UK Royal College of Physicians, Nicotine without smoke: Tobacco harm reduction (2016) 14#15Building an Evidence Based approach to vuse Tobacco Harm Reduction led by Vaping First international tobacco company to launch an e-cigarette Largest published dataset on a single vapour product (ePen) First and most comprehensive analysis¹ of e-cigarette aerosol Our scientific data is published in 71 peer-reviewed manuscripts Evolved design with enhanced device, battery and nicotine salts supporting consumer safety and satisfaction Pilot launches of age verification technology in H1 '21 BAT A BETTER TOMORROW 1. From Margham et al, Chem Res Tox 2016, 29, 1662-1678 15#16Growing Consensus on Harm Reduction vuse Potential of Vaping Products ASH (Action on Smoking & Health)¹ Public health charity "Compared to tobacco products, electronic cigarettes are significantly safer" PUBLIC HEALTH ENGLAND² "Our new review reinforces the finding that Vaping is at least 95% less harmful'...and of negligible risk to bystanders" 1. UK HOUSE OF COMMONS SCIENCE & TECHNOLOGY COMMITTEE3 1 “E-cigarettes present an opportunity to significantly accelerate already declining smoking rates" "They are substantially less harmful - by around 95% - than conventional cigarettes. They lack the tar and carbon monoxide of conventional cigarettes - the most dangerous components” BAT A BETTER TOMORROW GOVERNMENT OF CANADA4 "Switching from tobacco cigarettes to vaping products will reduce a person's exposure to many toxic and cancer-causing chemicals" NEW ZEALAND MINISTRY OF HEALTH5 "Smokers switching to vaping products are highly likely to reduce their health risks and for those around them" ASH Briefing Note. 2. 2018: John Newton, Director for Health and Improvement. 3. Seventh Report of Session July 2017. 4. Supporting the Sustained Transition of Smokers of Conventional Cigarettes to Vaping Products - CIHR (cihr-irsc.gc.ca) 2019. 5. Position statement on vaping | Ministry of Health NZ 2020 16#17Reduction 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 Benzene Day 2-3 Day 4-5 BAT A BETTER TOMORROW -Cigarette Vuse Cessation Day 6-7 Cooney s. The Science of Potentially Reduced Risk Tobacco and Nicotine Products. Asian College of Neuropsychopharmacology 12 October 2019 17#18glo Growing Consensus on Harm Reduction Potential of THP products Public Health England Compared to cigarette smoke, heated tobacco products are likely to expose users and bystanders to lower levels of particulate matter and harmful and potentially harmful compounds 2018 2017 UK Committee on Toxicology It is likely there is a reduction in risk, though not to zero, for health for smokers who switch completely to heat-not- burn tobacco products Federal Institute for Risk Assessment The herein confirmed reductions of relevant toxicants by about 80-99% are substantial 2019 BAT A BETTER TOMORROW Food and Drug 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 2020 18#19glo Biomarker of Potential Harm Responses Similar to Cessation 0% -25% -50% -75% -100% Inflammation Magnitude of change relative to cessation 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. 19#20Snus is much lower risk than smoking 200 180 160 140 120 100 80 60 40 20 0 Poland Hungary Latvia Lung Cancer Deaths in Men Aged >35** Lithuania Romania Estonia Greece Czech Rep. Slovakia Bulgaria Spain Slovenia Netherlands Italy Germany France Luxembourg UK Austria Portugal Finland BAT Sweden A BETTER TOMORROW * Use of Swedish Snus is not a risk factor for oral cancer and no association has been established with neck, oesophagus and gastric cancer. **WHO-International Agency for Research on Cancer's World Cancer Mortality Database, Age standardised mortality rate per 100,000, extracted 2013. 20#21VII Velo has Much Lower Toxicant Levels VELO than Snus -99% Toxicants VS. Cigarettes -76% Toxicants VS. Snus² Assessment of 9 chemicals the WHO recommends to reduce in cigarette smoke¹ vs. cigarette and Snus As measured by independent lab BAT A BETTER TOMORROW 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 Organisation recommends to reduce in cigarette smoke. 21#22Extensive Scientific Substantiation support our products as Reduced Risk* glo vuse Emissions -99%¹ Toxicology -99%¹ Clinical studies show significant reductions in biomarkers of exposure Our Vapour scientific data is published in 71 peer- reviewed manuscripts Emissions -90% to -95%² Toxicology -95%² Clinical studies show significant reductions in biomarkers of exposure, similar to cessation Our glo scientific data is published in 65 peer- reviewed manuscripts VELO BAT A BETTER TOMORROW >30 years of studies have shown snus is much less risky than smoking Toxicology even less harmful than snus Clinical studies show Velo usage & behaviour is very similar to snus 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. *Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive. Our products as sold in the US, including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products without regulatory clearance. 22#23How New Category Products should be Regulated Q An evidence-based approach Proportionate regulation Freedom to innovate Engagement, dialogue & communication Responsible marketing freedoms BAT A BETTER TOMORROW 30 Consumer Choice & Freedom 23#24Harm Reduction is the Cornerstone of our ESG Strategy Comprehensive H E CONSUMER CHOICE ● • Climate change Water Excellence in ENVIRONMENTAL management Reducing the HEALTH impact of our business • Biodiversity & Afforestation • Waste 50 million consumers of non-combustible* products by 2030 S KI WORLD-CLASS SCIENCE ● Delivering a positive SOCIAL impact • Human rights ● • Farmer livelihoods • Health and safety ● People and culture G £5bn New Category Revenue in 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 24#25Building on Strong ESG Foundations 2000-2005 ESTABLISHING 2006-2010 DEVELOPING BRITISH AMERICAN TOBACCO SOCIAL REPORT 2001/2002 Eliminating Child Labour eclt FOUNDATION in Tobacco Growing SRTP Social Responsibility in Tobacco Production THE BRITISH AMERICAN TOBACCO BIODIVERSITY PARTNERSHIP MARKETING STANDARDS 2001 WE DON'T SELL CIGARETTES TO PERSONS UNDER 18 18 OUR SUSTAINABILITY AGENDA Harm reduction We will strive to bring commercially viable, consumer acceptable reduced-risk products to market. Marketplace We will take a lead in upholding high standards of corporate conduct within our marketplace. Environment We will actively address the impacts of our business on the natural environment. Supply chain We will work for positive social, environmental and economic impacts in our supply chain. People and culture We will work to ensure we have the right people and culture to meet our goals. 50% CO₂e by 2030 CANCER LUCKY STRI O LUCKY STRIKE bat-science.com External Scientific Panel ǝdh 2011-2015 EMBEDDING edh vype Santa any adverse c shreshed POLICY stefass Conduct and Supples GROUP RIGHTS STRATEGY DUE DILIGENCE proverige and acc STP SUSTAINABLE TOBACCO PROGRAMME Supply chain sustainability strategy Diversity & Inclusion strategy lumes poch 2016-2019 GROWING GRAN SCIENCE BASED TARGETS O glo dio LYFT JELIVER LIVERY I Thrive SUSTAINABLE AGRICULTURE AND FARMER LIVELIHOODS INTEGRI TEGRIT 2020+ ACCELERATING BAT A BETTER TOMORROW E Excellence in ENVIRONMENTAL management A BETTER TOMORROW™ Reducing the HEALTH impact of our business Delivering a positive SOCIAL impact Named in Dow Jones Sustainability Indices for 19 consecutive years In 2020 was once again the only tobacco company in prestigious DJSI World Index Stretching new Targets CO₂ G Robust corporate GOVERNANCE 25#26Focused on Delivering Value for all our Stakeholders SHAREHOLDERS Q Consistently delivering against our financial commitments for shareholders Shared Value CONSUMERS Offering consumers a choice of enjoyable, less risky products¹ SOCIETY Reducing the overall health and environmental impact of our business for society BAT A BETTER TOMORROW EMPLOYEES 8 Creating a dynamic and purposeful place to work for our employees 1. Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive. 26#27H Our Shared Value Strategy in Action Reducing the HEALTH impact of our business E Excellence in ENVIRONMENTAL management S Delivering a positive SOCIAL impact G Robust corporate GOVERNANCE SHAREHOLDERS Sustainable returns and unique investment case O Efficient use of natural resources Supporting stronger communities A reputable investment O CONSUMERS A diverse range of less risky products to choose from 13 Products with lower environmental impact Brands that enhance livelihoods and communities Transparent marketing Q SOCIETY Reducing the health impact of our business Protecting resources and acting on climate Partnering for impact Ethical conduct sto EMPLOYEES A career with a clear purpose 10 Proud to work for a green company Inclusive work culture is Clear standards to empower all BAT A BETTER TOMORROW A BETTER TOMORROW™ Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive. 27#28H E S G Embedded in How We Think and Operate 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 Farmer livelihoods Cyber security *Legal and External Affairs 28#29H E S G With Clearly Defined Targets Reducing the HEALTH impact of our business Excellence in ENVIRONMENTAL management Delivering a positive SOCIAL impact Robust corporate GOVERNANCE ● ● ● ● ● ● ● ● ● ● 50m non-combustible product* consumers by 2030 £5 billion New Category revenue by 2025 ● 100% Standards of Business Conduct adherence 100% Youth Action Prevention Guidelines adherence • SoBC Lobbying and Engagement Policy adherence BAT A BETTER TOMORROW Carbon neutral: Scope 1 & 2 by 2030; Scope 3 by 2050 35% reduction in water withdrawn by 2025¹; 30% increase in water recycled¹ by 2025 100% sustainable wood for tobacco curing²; 100% renewable electricity by 20303 100% of plastic packaging reusable, recyclable or compostable by 2025 Eliminate unnecessary single-use plastic packaging; Zero waste to landfill by 20253 Zero child labour and forced labour by 20254 100% suppliers subject to human rights due diligence5 Enhance farmer livelihoods through good agricultural practices and higher productivity Zero accidents group-wide Increase women to 45% of management roles by 2025 ^ See Appendix Al for further details on ESG targets. * Non-combustible consumer definition. See Appendix A2. 1 Against 2017 baseline. 2. by our contracted farmers.. 3. in our operations sites 4. in our tobacco supply chain; child labour definition based on ILO definition. 5. 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 29#30E Accelerating our Transformation: Excellence in Environmental Management CLIMATE CHANGE WATER Carbon neutral - Scope 1 & 2 by 2030 WASTE 35% reduction in water withdrawn by 2025¹ BIODIVERSITY & 100% sustainable wood for tobacco curing² AFFORESTATION 100% of plastic packaging reusable, recyclable or compostable by 2025 2017 864 ('000 tonnes) 99% 2020 5.19 (mn cubic metres) Data not available 541 4.03 99% 82% BAT A BETTER TOMORROW (-37.4%) (-22.5%) L See Appendix Al for further details on ESG targets. 1. From 2017 baseline. 2. by our contracted farmers 30#31Comprehensive Carbon Strategy working throughout the value chain 2 Purchase renewable energy certificates Increase purchase of green energy Build a climate-resilient supply chain 3 Climate scenario analysis for key tobacco-growing areas Enter into longer-term power- purchase agreements For our operations Å In our decision-making Apply TCFD-based climate risk approach Implement global internal carbon pricing For our value chain 24 BAT Q A BETTER TOMORROW Invest in on-site energy generation projects Roll out electric vehicles in our fleet Life cycle assessments for our product categories Help farmers deploy innovative, low-carbon curing technologies and farming techniques 31#32Good progress on Scope 1 & 2 Emissions Reduce emissions On-site renewables Renewable energy certificates & Long term power agreements Carbon offset credits BAT 37% reduction in Scope 1 & 2 emissions v 2017 A BETTER TOMORROW Solar energy generation at factories in 8 countries* Only used once all other options utilised All sites incorporate green power purchases Carbon Neutral Scope 1 & 2 by 2030 See Appendix Al for further details on ESG targets. *On-site solar energy generation added in 2020 32#33Working Closely with Our Partners to Reduce Scope 3 Emissions % carbon emissions in supply chain 32% 27% 41% Leaf Purchased Non-leaf Purchased Goods & Services Other Scope 3* >30% reduction in fuel use with upgraded curing barns** Engaging with suppliers to reduce carbon emissions Life-cycle analysis such as optimising freight and designing products for recyclability BAT A BETTER TOMORROW CDP SUPPLIER ENGAGEMENT LEADER 2020 Carbon Neutral Scope 3 by 2050 See Appendix Al for further details on ESG targets. *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. 33#34S Accelerating our Transformation: Delivering a Positive Social Impact HUMAN RIGHTS HUMAN RIGHTS HEALTH & SAFETY PEOPLE & CULTURE Zero child labour by 2025¹ 100% of suppliers subject to human rights due diligence³ Zero accidents group-wide Increase women to 45% of management roles by 2025 2017 Data not available 46% 284 34% 2020 100% BAT 0.5%² (98.5% resolved) 142 A BETTER TOMORROW (-50%) 38% (+4pp) See Appendix Al for further details on ESG targets. 1. in our tobacco supply chain 2. % of farms with incidents of child labour identified 3. 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 34#35Human Rights Strategy aligned with UN Guiding Principles FOCUSING ON SALIENT ISSUES SPEAK UP CHANNELS STAKEHOLDER ENGAGEMENT GI 18: CORRECTIVE ACTION PLANS GLOBAL MINIMUM STANDARDS REMEDY 作 O POLICY DUE DILIGENCE EQ EMBEDDED IN BUSINESS PROCEDURES × O BAT ONGOING MONITORING THOROUGH RISK ASSESSMENTS PRIORITISATION OF HIGHEST RISK A BETTER TOMORROW 35#36Comprehensive Approach to Eliminate Child Labour in Leaf ROBUST MONITORING AND REMEDIATION PROCESS 2 3 4 Strong Policies Risk Mapping Farm Visits Identification 1 Contracted farms visited monthly¹ iQ Human rights assessments Aligned with UN Guiding Principles 0.5% incidence of child labour² LONGER-TERM FOCUSED ON ROOT CAUSES S Q Training and awareness raising 390,000+ attendances at human rights farmer training Enhancing livelihoods Up to 20% yield increase with new seed varieties BAT A BETTER TOMORROW 5 6 Remediation Follow-up 98.5% incidents resolved³ Partnerships and communities Community projects tackling root causes of child labour 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). Reported via our Thrive assessments covering BAT-contracted farmers and farmers contracted to our strategic third-party suppliers, representing more than 80% of our total tobacco leaf purchases in 2020 36#37Protecting Human Rights in our Non-Leaf Supply Chain NEW SUPPLIER: INDEPENDENT AUDIT Workplace Conditions assessed by Intertek ONBOARDING Supplier Code of Conduct incorporated in contracts New supplier approved × EXISTING SUPPLIER: ANNUAL RISK ASSESSMENT against independent human rights indices CORRECTIVE ACTION PLANS for all issues identified, verified by Intertek × BAT ! High-risk supplier A BETTER TOMORROW INDEPENDENT AUDIT Workplace Conditions assessed by Intertek 37#38G Accelerating our Transformation: Robust Corporate Governance BUSINESS ETHICS RESPONSIBLE MARKETING REGULATION & POLICY ENGAGEMENT 100% Standards of Business Conduct (SoBC) adherence 100% Youth Action Prevention Guidelines adherence SoBC Lobbying and Engagement Policy adherence DISCLOSURE Fully align our disclosures with key FRAMEWORKS frameworks; with TCFD by 2022 2017 2020 100% (employee training) 100% N/A (markets aligned) GRI ✓ 100% BAT A BETTER TOMORROW Principles for Engagement incorporated into a new Lobbying and Engagement Policy in our SoBC Eiff SASB ✓ GRI WEF See Appendix A1 for further details on ESG targets. 38#39Continuously 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 2 BAT A BETTER TOMORROW 2021/22 AUDIT, ASSURANCE & HARNESSING DATA ➤ Data analytics Automation & Integration 3rd Party life- cycle mgmt. Delivery with Integrity 39#40Ensuring Responsible Marketing Directed at Adult Smokers International Marketing Principles (IMP) Introduced in 2001 Responsible Accurate Targeted at adults Transparent Compliant with law Refreshed again in 2020 Applied globally, even when stricter than local laws All marketing materials subject to review and approval by internal legal 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 40#41Our Integrated Approach to ESG Contributes Directly to the UN Sustainable Development Goals Life Below Water Climate Action: Life on Land Responsible Consumption and Production. Peace, Justice and Strong Institutions 8 Sustainable Cities and Communities 14 13 12 15 11 Partnerships for the Goals 16 <I> Reduced Inequalities 17 10 SUSTAINABLE DEVELOPMENT GOALS 1 9 No Poverty Industry, Innovation and Infrastructure 2 8 (55 7 3 Zero Hunger 6 MA 5 0 Decent Work and Economic Growth Good Health and Well-Being Affordable and Clean Energy Quality Education Gender Equality Clean Water and Sanitation STRATEGIC GOALS PRIORITY GOALS LOCALISED GOALS 3 W 8 GOOD HEALTH AND WELL-BEING ECONOMIC GROWTH M 15 LIFE ON LAND 13 9 CLIMATE ACTION INDUSTRY, INNOVATION AND INFRASTRUCTURE 10 REDUCED INEQUALITIES 12 RESPONSIBLE CONSUMPTION AND PRODUCTION QO BAT A BETTER TOMORROW 16 PEACE, JUSTICE AND STRONG INSTITUTIONS % 41#42Creating Value for all Stakeholders Our ESG Agenda H Reducing the HEALTH impact of our business E Excellence in ENVIRONMENTAL management S Delivering a positive SOCIAL impact G Robust corporate GOVERNANCE CONSUMERS SOCIETY CREATES SHARED VALUE FOR EMPLOYEES SHAREHOLDERS BAT A BETTER TOMORROW OUR PURPOSE A BETTER TOMORROW T TM 46 CREATING SHARED VALUE FOR OUR STAKEHOLDERS ISN'T JUST THE RIGHT THING TO DO, IT MAKES SOUND BUSINESS SENSE AND IS CENTRAL TO OUR STRATEGY TO DELIVER A BETTER TOMORROW Jack Bowles, CEO 42#43Delivering Our Purpose is Transforming BAT From Cigarettes And Declining Volume Growing Value A BETTER TOMORROW™ To Building A Better Tomorrow™ BAT Multi-category CPG Nicotine & Beyond* And A BETTER TOMORROW Growing Volume & Value *Beyond refers to Wellbeing & Stimulation Beyond Nicotine. Target market for consumer acquisition is existing adult smokers/nicotine/beyond nicotine users. 43#44Appendix A BETTER TOMORROW A1: Environmental Targets Targets cover: climate change, water and waste, sustainable agriculture, human rights, other Social targets, and Governance targets. 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. BAT 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. 44