WEBVTT

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2024 was a key moment in BAT’s transformation journey.

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We sharpened our execution,

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which enabled us to navigate
near-term market challenges

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and deliver results
in-line with expectations.

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I'm delighted to be joined by our CFO,
Soraya Benchikh,

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who will share more detail
on our financial performance shortly.

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We are making good progress towards
our vision of Building a Smokeless World

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as we transform to be a predominantly
smokeless business by 2035.

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This year, we added 3.6 million consumers

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of our smokeless products,
which now represents

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17.5% of Group revenue,
up 1 percentage point.

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I'm confident in our pathway ahead
as we build on our delivery

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and shift from investments
to deployment in 2025.

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And we remain committed to
returning to our mid-term guidance of

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3 to 5% revenue and

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4 to 6% adjusted profit from operations growth,

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adjusted for Canada, on a
constant currency basis in 2026.

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Over to you Soraya, to take us through

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the financial highlights of the year.

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Thank you Tadeu.

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I'm pleased to share that we delivered

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organic constant currency results

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in-line with guidance,

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with 1.3% revenue growth
and 1.4% adjusted profit growth,

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with EPS up 3.6%.

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In New Categories,

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revenue growth accelerated in the second half

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and was up 8.9% for the year,

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driven by an excellent performance in Velo.

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New Category adjusted gross profit
increased by 20%,

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driven by pricing and scale benefits.

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Together with a laser focus on resource allocation

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we delivered a £250 million increase
in category contribution,

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increasing our margin up to 7%.

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In the US, we have turned
an important corner

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with an accelerated financial
performance in the second half.

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Our commercial investments
are gaining traction

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and Combustibles
volume share has stabilised.

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We look forward to continued improvement

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in 2025 and 2026.

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We are well on track
to deliver our target

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£1.2 billion in productivity savings
by the end of this year,

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and we are confident in our
ability to generate

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an additional £2 billion
of savings between 2026 and 2030.

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Increased scale and
focused resource allocation

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will continue to drive
New Category contribution in 2025,

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while cost savings and efficiencies
will support Combustibles profitability.

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BAT is a highly cash generative company.

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We are committed to rewarding
our shareholders with strong cash returns.

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We have delivered more than 100%
operating cash conversion

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over the last five years,

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and returned £28 billion
to shareholders

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This year,

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we have increased our
dividend by 2%,

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alongside a £900 million
share buyback.

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We expect to deliver in excess

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of £50 billion of cumulative
free cash flow between 2024 and 2030.

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And as part of our agile
capital allocation approach,

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we will continue to balance deleveraging
with our commitment

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to a progressive dividend
and sustainable share buyback.

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We have made good progress
reducing leverage,

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ending the year within our target corridor
at 2.4x, and we expect to be

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within this target corridor
on an ex-Canada basis by the end of 2026.

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So in summary, in 2024,

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we laid solid foundations for delivering
our mid-term growth algorithm,

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and looking ahead, our focus on
driving quality growth continues.

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Thanks Soraya.

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At our CMD in October, I outlined my
"10 reasons to believe in BAT's future".

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These remain clear and
compelling reasons

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to believe in the sustainability
of our future growth.

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We have transformed our
entire innovation ecosystem,

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allowing us to step change
our product portfolio.

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I am excited about our
strong innovation pipeline

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across all three New Categories

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that we will deploy through 2025.

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In Heated Products, new innovations
and improved consumables

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are driving improved
revenue momentum.

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glo Hilo is a breakthrough

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new system that we believe
will reshape the way

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glo is positioned in the category.

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BAT is the global leader in Vapour,

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and our next innovation, Vuse Ultra,

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launching this year,
will be our initial step

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in offering consumers
premium Vapour products.

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In Modern Oral, the fastest
growing New Category,

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Velo maintained its clear
leadership position in AME.

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In the U.S.

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our refreshed mix is gaining traction,

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and at the end of 2024,
we launched Velo Plus,

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which is already showing
encouraging early results.

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With our multi-category
strategy and global footprint,

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BAT is well-positioned
in a growing industry.

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I'm confident that we have
the right strategy,

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the right capabilities

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and the right people to
deliver a profitable transformation.

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All of these will be executed
with a returns-focus,

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in terms of both cash generation

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and continuing to build a
track record of delivery.

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I'm excited about BAT’s future,
and I believe we will deliver

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long-term sustainable growth and value
for all our stakeholders.