British American Tobacco - NGP progress showcased at Capital Markets Day

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25 October 2017

NGP progress showcased at Capital Markets Day

We were proud to showcase our commitment to and progress in Next Generation Products (NGP) at a Capital Markets Day for investors and analysts on 25 October.

The event was held at The Bike Shed in Shoreditch, an area of London that in recent years has evolved into a hub for creative industries and the people who work in them.

The day included a NGP exhibition showing how our NGP portfolio – which includes Vapour and Tobacco Heating Products – is evolving to meet the needs of adult consumers seeking alternatives to traditional cigarettes.

We also shared our objectives for the growth of our NGP business. These are to generate NGP revenue of over £500 million* this year, and for this to double in 2018 to over £1 billion, rising to more than £5 billion in 2022. We expect the NGP business to be breaking-even by the end of 2018 and to deliver substantial profit by 2022.

The day’s line-up also included presentations and Q&A sessions on Reynolds American Inc., regulation, marketing and the performance of our international business.

Commenting on the Capital Markets Day, Nicandro Durante, Chief Executive, said: “We are very pleased to be sharing more details on the opportunities for BAT in NGP and combustibles, and to introduce our new US subsidiary just three months after the completion of the Reynolds acquisition. 

“We are proud to share our exciting future product pipeline across both the Tobacco Heating and Vapour categories and to provide shareholders with an opportunity to experience the products first-hand. Our NGP business has real momentum and our confidence is reflected in the financial objectives we have set out.”

You can read more about the Capital Markets Day in a press release issued on 25 October.

*Pro forma number reflecting 12 months of Reynolds in 2017.


This announcement does 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. This announcement contains certain forward-looking statements, made within the meaning of Section 21E of the United States Securities Exchange Act of 1934, 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. 

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” and similar expressions.

It is believed that the expectations reflected in this announcement 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 failure to realize contemplated synergies and other benefits from mergers and acquisitions, including the recent merger of Reynolds American Inc. (“Reynolds”) and BAT; the effect of mergers, acquisitions and divestitures, including the merger of Reynolds and BAT, on BAT’s operating results and businesses generally; the ability to maintain credit ratings; changes in the tobacco industry and stock market trading conditions; changes or differences in domestic or international economic or political conditions; changes in domestic or international tax laws and rates; the impact of adverse domestic or international legislation and regulation; the ability to develop, produce or market new alternative products and to do so profitably; the ability to effectively implement strategic initiatives and actions taken to increase sales growth and the market position of BAT’s brands; the ability to attract, convert and retain new or existing consumers; the ability to enhance cash generation and pay dividends; adverse litigation and dispute outcomes and the effect of such outcomes on BAT’s financial condition; adverse decisions by regulatory bodies and changes in the market position, businesses, financial condition, results of operations or prospects of BAT.

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 announcement and the Company undertakes no obligation to update or revise these forward-looking statements. Nothing in this document should be construed as a profit forecast. Readers are cautioned not to place undue reliance on such forward-looking statements.

Additional information concerning these and other factors can be found in BAT’s and Reynolds’s filings with the U.S. Securities and Exchange Commission (“SEC”), including Reynolds’s most recent Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K and BAT’s registration statement on Form F-4, which was declared effective by the SEC on June 14, 2017, and Current Reports on Form 6-K, which may be obtained free of charge at the SEC’s website,, and BAT’s Annual Reports, which may be obtained free of charge from BAT’s website