British American Tobacco underlines commitment to transforming tobacco in latest Group reports
15 March 2018
British American Tobacco (BAT) today published its Annual Report and Sustainability Report – both of which outline the Company’s commitment to transform tobacco by offering an unrivalled suite of potentially reduced-risk products that address the varied preferences of today’s consumers.
The reports – both titled ‘Transforming Tobacco’, clearly set out BAT’s ambition to lead and shape the transformation of the industry by achieving a triple win: for consumers – who will be offered a range of potentially safer choices; for society – who could benefit from real progress in tobacco harm reduction; and for shareholders – who will own an even more sustainable and profitable business.
Complementing its existing combustible portfolio, BAT now offers a wide range of potentially reduced-risk products, including Next Generation Products (NGPs), comprising vapour and tobacco heating products (THPs), as well as oral tobacco and nicotine products, such as snus and moist snuff.
Commenting on the two reports, Nicandro Durante, Chief Executive, said:
“We recognise that the tobacco and nicotine industry has entered a dynamic period of change and we are committed to leading this transformation. Increased public health awareness, new societal attitudes and rapid developments in new technologies have all combined to create a unique opportunity to accelerate the delivery of our long-held ambition to provide our consumers with less risky tobacco and nicotine choices.
“These two important reports out today, clearly outline our strategy to transform tobacco by building our business based on outstanding products, informed consumer choice and a potentially reduced-risk portfolio. Put simply: more choice, more innovation, less risk.”
The Company’s commitment to the important role these potentially reduced-risk products will play, is reflected in its aims to generate over £1 billion revenue from NGPs in 2018 and to increase this figure fivefold to £5 billion by 2022.
Since 2012, together with Reynolds American Inc., BAT has invested approximately US$2.5 billion in developing and commercialising its range of Next Generation Products.
Mr Durante added:
“Transforming Tobacco isn’t just about harm reduction, though. To respond to evolving challenges and opportunities, we need to continue to focus on the other key areas of our Sustainability Agenda, including sustainable agriculture and farmer livelihoods, and corporate behaviour. These are fundamental imperatives that set the foundations for our business for years to come.”
Now in BAT’s 16th year of sustainability reporting, the latest Sustainability Report, ‘Transforming Tobacco’, details the Group’s 2017 sustainability performance and how the Company is shaping the future and transforming tobacco to create shared value for consumers, shareholders and stakeholders across its value chain.
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Victoria Buxton: +44 (0)20 7845 2012
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John Harney: +44 (0)20 7845 1263
NOTES TO EDITORS
About the reports
To download the Annual Report and Accounts and Sustainability Report, visit www.bat.com/reporting.
British American Tobacco’s Sustainability Report is independently reviewed by its Stakeholder Panel and Ernst & Young LLP provide limited assurance of selected sustainability data. Detailed performance information, including progress against goals, data charts for key performance indicators and Global Reporting Initiative (GRI) G4 reporting, can be found online at www.bat.com/sustainability/data.
About British American Tobacco
British American Tobacco (BAT) is one of the world’s leading, multi-category consumer goods companies, that provides tobacco and nicotine products to millions of consumers around the world. It employs over 55,000 people, with market leadership in over 55 countries and factories in 42. Its Strategic Portfolio is made up of its global cigarette brands and an increasing range of potentially reduced-risk products, comprising vapour and tobacco heating products, as well as oral tobacco and nicotine products such as moist snuff and snus.
In 2017 the Group generated reported revenue of £20 billion and profit from operations of £6.5 billion. In July 2017, British American Tobacco p.l.c. acquired the remaining 57.8% of Reynolds American Inc. that BAT did not already own, creating a stronger, global tobacco and nicotine company.
Forward looking statements
This communication contains certain forward looking statements, including “forward-looking” statements made within the meaning of Section 21E of the United States Securities Exchange Act of 1934. 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 Group operates.
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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; changes in domestic or international tax laws and rates; adverse litigation and dispute outcomes and the effect of such outcomes on the Group’s financial condition; changes or differences in domestic or international economic or political conditions; the inability to obtain price increases and the impact of price increases on consumer affordability thresholds; adverse decisions by domestic or international regulatory bodies; the impact of market size reduction and consumer down-trading; translational and transactional foreign exchange rate exposure; the impact of serious injury, illness or death in the workplace; the ability to maintain credit ratings and to fund the business under the current capital structure; the ability to develop and commercialise new alternative products and to do so profitably; and changes in the market position, businesses, financial condition, results of operations or prospects of the Group.
It is believed that the expectations reflected in this communication 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. 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 communication and the Group 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.
Additional information concerning these and other factors can be found in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”), including the Annual Report on Form 20-F filed on 15 March 2018 and Current Reports on Form 6-K, which may be obtained free of charge at the SEC’s website, http://www.sec.gov, and the Company’s Annual Reports, which may be obtained free of charge from the British American Tobacco website www.bat.com.