British American Tobacco plc Capital Markets Day Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Faham Baig - UBS - Analyst : Thanks. Faham Baig, UBS. Thank you for the presentations. Certainly a lot to digest. Two from me to begin with. I guess Luciano first, I think you mentioned you expect more limited long-term potential in Heated Tobacco compared to the other two categories. Maybe could you expand on that and what you mean by it and sort of balance it with the investments that you're making in that category?

Question: Faham Baig - UBS - Analyst : Hello? Okay, brilliant. The second question is the bifurcation between the US and Europe. So I think you presented 33% of revenues in the US are now smokeless. And clearly, that's having an impact on cigarette volumes being down roughly 10%. But if we take a look at Europe, where I think 36% of your revenues are smokeless. Cigarette volumes are flat in some markets, even growing. So could you maybe expand on why Europe isn't seeing the same decline in cigarettes compared to the US where next-generation products are still doing reasonably well?

Question: Faham Baig - UBS - Analyst : Hi. Faham Baig from UBS. Thanks for the presentations from me as well. I want to come back to the medium-term algorithm. So I guess, previously, you've spoken about the US returning to a 5% to 7% volume decline industry. Let's hypothetically assume that it's more like 7% to 9% instead of 5% to 7%. Do you think you have sufficient levers in the US in that situation? Be

Question: Faham Baig - UBS - Analyst : A quick second question. You mentioned bolt-on M&A. What in your portfolio are you particularly wanting to expand into? Like where do you want to potentially do M&A?

Question: Faham Baig - UBS - Analyst : Thanks.