WEBVTT

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BAT continues to drive a sustainable

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transformation with our global

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multi-category portfolio.

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We are building a smokeless world,

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with our smokeless products

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now accounting for 18.2% of Group revenue.

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And in 2025, we added 4.7 million consumers

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of our smokeless products, reaching 34.1 million.

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I would like to share three key

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takeaways from today's results with you.

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First, we delivered Group results

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at the top end of guidance.

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The investments we have made provide

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a strong foundation for future growth.

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Our accelerating momentum through 2025,

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supported by strong cost savings,

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give us further confidence in delivering

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our mid-term algorithm from 2026.

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Second, we have successfully re-set our U.S. business,

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driving a return to revenue and profit growth

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in Combustibles for the first time in three years,

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accelerating in the second half.

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In addition, we delivered

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strong growth in Modern Oral.

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Velo Plus is the fastest growing

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Modern Oral brand in the U.S.

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It has more than doubled its consumer base,

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driving over 300% revenue growth

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on a constant currency basis,

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and capturing 45% of category value growth.

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Importantly, Velo Plus also achieved positive

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category contribution within 12 months of launch.

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Third, our New Category revenue growth accelerated

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to low double-digits in the second half,

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and we launched premium innovations

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across all three New Categories.

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In Modern Oral,

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our latest innovation,

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Velo Shift, is reshaping

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the consumer experience, with pilot launches

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already driving incremental share.

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In Vapour, Vuse Ultra

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is our most advanced vapour device yet.

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This premium platform is delivering meaningful

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value share gains in key launch markets.

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In Heated Products,

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we are establishing a premium position

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with our breakthrough innovation, glo Hilo.

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Early results are encouraging and we expect

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to progressively gain share

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in the premium segment over time.

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Our disciplined focus on Quality Growth continues

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to improve returns on more targeted investment,

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driving increasing New Category contribution.

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As BAT transforms,

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it continues to be highly cash generative,

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delivering at least 100% operating

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cash conversion over the last six years.

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As a result, our financial flexibility

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continues to strengthen

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and we remain on track to generate

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more than £50 billion of free cash flow

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before dividends by the end of 2030.

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We have made good progress

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further reducing leverage.

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We expect to be within our 2-2.5x

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target leverage range by the end of 2026,

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on an adjusted for Canada basis.

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We increased our share buy-back programme

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for 2026 to £1.3 billion.

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This, in addition to 2% dividend growth,

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reflects our commitment to shareholder returns.

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I'm proud of our progress in 2025.

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Our performance highlights the strength of our

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multi-category portfolio and the

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breadth of our global footprint.

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I want to thank all our teams around the world

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for driving these encouraging results.

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Looking ahead, I'm confident that we will

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sustainably deliver our mid-term growth algorithm

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as we continue to transform BAT.

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With a solid foundation, and momentum behind our strategy,

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we believe we are well positioned for the future.