《英美烟草集团British American Tobacco plc（BATS）2024年综合年度及可持续发展报告「LSE」（英文版）（474页）.pdf》由会员分享，可在线阅读，更多相关《英美烟草集团British American Tobacco plc（BATS）2024年综合年度及可持续发展报告「LSE」（英文版）（474页）.pdf（474页珍藏版）》请在三个皮匠报告上搜索。
1、British American Tobacco p.l.c.(No.3407696)Annual Report 2024.This document constitutes the Annual Report and Accounts of British American Tobacco p.l.c.(the Company)and the British American Tobacco Group prepared in accordance with UK requirements and the Annual Report on Form 20-F prepared in acco
2、rdance with the U.S.Securities Exchange Act of 1934(the Exchange Act)and the rules promulgated thereunder for the year ended 31December 2024,except that certain phrases,paragraphs or similar sections denoted with a symbol do not form part of the Annual Report on Form 20-F as filed with the U.S.Secur
3、ities and Exchange Commission(the SEC)and certain phrases,paragraphs or similar sections denoted with a symbol do not form part of the Annual Report and Accounts.In addition,the Report of Independent Registered Public Accounting Firm on pages 260 and 261 will only be included in the Annual Report on
4、 Form 20-F.Moreover,the information in this document may be updated or supplemented only for purposes of the Annual Report on Form 20-F at the time of filing with the SEC or later amended if necessary.Any such updates,supplements or amendments will also be denoted with a symbol.Insofar as this docum
5、ent constitutes the Annual Report and Accounts,it has been prepared and is presented in accordance with,and reliance upon,applicable English company law and the liabilities of the Directors in connection with this report shall be subject to the limitations and restrictions provided by such law.This
6、document is made up of the Strategic Report,the Governance Report,the Financial Statements and Notes,and certain other information.Our Strategic Report,pages 2 to 163,includes our purpose and strategy,global market overview,business model,global performance,as well as our financial performance and p
7、rincipal Group risks.Our Governance Report on pages 164 to 247 contains detailed corporate governance information,our Committee reports and our Responsibility of Directors.Our Financial Statements and Notes are on pages 247 to 388.The Other Information section commences on page 389.This document pro
8、vides alternative performance measures(APMs)which are not defined or specified under the requirements of International Financial Reporting Standards(IFRS).We believe these APMs(which are Non-GAAP measures)provide readers with important additional information on our business.We have included a Non-GA
9、AP measures section on pages 395 to 410 which provides a comprehensive list of the APMs that we use,an explanation of how they are calculated,why we use them and a reconciliation to the most directly comparable IFRS measure where relevant.British American Tobacco p.l.c.has shares listed on the Londo
10、n Stock Exchange(BATS),the Johannesburg Stock Exchange(BTI),and,as American Depositary Shares,on the New York Stock Exchange(BTI).The Annual Report is published on .Aprinted copy is mailed to shareholders on the UK main register who have elected to receive it.Otherwise,shareholders are notified that
11、 the Annual Report is available on the website and will,at the time of that notification,receive a short Performance Summary(which sets out an overview of the Groups performance,headline facts and figures and key dates in the Companys financial calendar)and Proxy Form.Specific local mailing and/or n
12、otification requirements will apply to shareholders on the South Africa branch register.References in this publication to British American Tobacco,BAT,Group,we,us and our when denoting opinion refer to British American Tobacco p.l.c.and when denoting business activity refer to British American Tobac
13、co p.l.c.and its subsidiaries,collectively or individually as the case may be,as well as in some circumstances those who work for them.When denoting business activity these collective expressions are used for ease of reference only and do not imply any other relationship between British American Tob
14、acco p.l.c.and its subsidiaries.The companies in which British American Tobacco p.l.c.directly and indirectly has an interest are separate and distinct legal entities.The material in this Annual Report and Form 20-F is provided for the purpose of giving information about the Company to investors onl
15、y and is not intended for general consumers.The Company,its Directors,employees,agents or advisers do not accept or assume responsibility to any other person to whom this material is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed.The material i
16、n this Annual Report is not provided for product advertising,promotional or marketing purposes.This material does not constitute and should not be construed as constituting an offer to sell,or a solicitation of an offer to buy,any of our products.Our products are sold only in compliance with the law
17、s of the particular jurisdictions in which they are sold.References in this document to information on websites,including the web address of BAT,have been included as inactive textual references only.These websites and the information contained therein or connected thereto are not intended to be inc
18、orporated into or to form part of the Annual Report and Form 20-F.Cautionary statement:This document contains forward-looking statements.For our full cautionary statement,see page447.A refined purpose:The best choice any adult smoker can make will always be quitting combustible tobacco products comp
19、letely.For the last few years,our aim has been to build A Better Tomorrow.This has meant working to reduce the health impact of our business by offering adult consumers a greater choice of enjoyable and reduced-risk*products compared to cigarettes.Now is the time to take a step forward.BATs New Cate
20、gory products are not smoking cessation devices and are not marketed for that purpose.Learn more about how were Building a Smokeless World at Better Tomorrow means Building a Smokeless World.A Smokeless World built on Smokeless products where,ultimately,cigarettes have become a thing of the past.A w
21、orld where smokers have migrated from cigarettes to smokeless alternatives.A world where Tobacco Harm Reduction is both understood and accepted.A world where smokers make a switch to better.*Based on the weight of evidence and assuming a complete switch from cigarette smoking.These products are not
22、risk free and are addictive.Our products as sold in the U.S.,including Vuse,Velo,Grizzly,Kodiak,and Camel Snus,are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.1Strategic ReportOverviewOur Global Business2Our Multi-Category Portfolio
23、4Chairs Introduction6Chief Executives Overview8Our Year in Numbers10Introducing OmniTM11Our StrategyOur Strategic Navigator12Our Business Model14Engaging with OurStakeholders18Chief Financial Officers Overview:Investment Case20Chief Financial Officers Overview:Our performance22Our Markets and Megatr
24、ends24Quality GrowthStrategic Pillar Overview 26Our Vapour Products28Our Heated Products30Our Modern Oral Products32Our Traditional Oral Products34Our Combustible Products35Beyond Nicotine37Dynamic BusinessStrategic Pillar Overview38Capital Efficiency40U.S.42AME44APMEA46Financial Performance Summary
25、48Treasury and Cash Flow55Sustainable FutureStrategic Pillar Overview60Our Sustainability Strategy662024 Sustainability Highlights68Tracking Progress69Double Materiality Assessment70Our Five Focus Areas:Tobacco Harm Reduction72Climate78Nature86Circularity94Communities102Sustainability Governance114S
26、ustainability Policies,Procedures and Standards116Creating a Culture of Integrity118TCFD Reporting120TNFD Reporting137Sustainability 2024 Assured Metrics153Sustainability Limited Assurance Report154Group Principal Risks155Viability Statement163GovernanceDirectors ReportChairs Introduction on Governa
27、nce164Board of Directors166Management Board170Governance Framework172Board Leadership 173Values and Culture174Board Activities in 2024176Board Engagement with Stakeholders178Principal Decisions Made by the Board184Our Approach to Division of Responsibilities185Board Effectiveness187Nominations Commi
28、ttee189Audit Committee194Remuneration ReportAnnual Statement onRemuneration2052024 Remuneration at a Glance216Directors Remuneration Policy217Annual Report onRemuneration227Responsibility of Directors247Financial StatementsIndependent Auditors Report248Group Financial Statements262Group Companies an
29、d Undertakings371Parent Company Financial Statements381Other InformationAdditional Disclosures389Shareholder Information448Other Information467In this years reportOur regional profile maximises opportunities for qualitygrowth in our sector.Each of our markets is accountablefor its own performance an
30、d driving growth.Our business is divided into three complementary regions,with a balanced presenceinbothhigh-growth emerging markets and highly profitable developed markets.Our in-depth marketplace analysis delivers insights on consumer trends and segmentation,which facilitates our geographic brand
31、prioritisation across our regions and markets.Consumer preferences and technology are evolving rapidly,and we are staying ahead ofthe curve with our digital hubs and innovation centres.We are also leveraging the expertise of our external partners and are looking forward to exciting results from our
32、venturing initiative,Btomorrow Ventures.Revenue by Region25,867m Total revenueU.S.11,278mAME9,241mAPMEA5,348mFor more key detail on our Regional Performance,see pages 42 to 47+Note:Map is accurate as at 31 December 2024 and is representative ofgeneral geographic regions and does not suggest that the
33、Group operates in each country of every region.Three Complementary RegionsBAT Annual Report and Form 20-F 2024Strategic ReportGovernance ReportFinancial StatementsOther InformationOverviewOur Global Business2United States of America(U.S.)Top Markets:U.S.Americas and Europe(AME)Top Markets:Combustibl
34、es:Brazil,Germany,Mexico,RomaniaHP:Germany,Greece,Hungary,Italy,Poland,Romania,the Czech RepublicVapour:Canada,France,Germany,Poland,Spain,the UKModern Oral:Denmark,Norway,Sweden,Switzerland,Poland,the UKAsia-Pacific,Middle East and Africa(APMEA)Top Markets:Combustibles:Bangladesh,Japan,PakistanHP:J
35、apan,South KoreaAssociates and Joint VenturesTop Markets:IndiaRead more about our Markets andMegatrends on pages 24 and 25+BAT Annual Report and Form 20-F 2024Strategic ReportGovernance ReportFinancial StatementsOther Information348,000+employees5major product categories140employee nationalities3reg
36、ionsBAT is a consumer-focused business operating internationally.Our multi-category approach means we are well placed to provide adult consumers with products designed for every mood and moment.Our portfolio reflects our commitment to meeting the evolving and varied preferences of todays adult consu
37、mers.Revenue by Product Category25,867mTotal revenueNew Categories3,432m13.3%Traditional Oral1,092m4.2%Combustibles20,685m80.0%Other658m2.5%Strategic PortfolioThese are our key brands in both the combustible andSmokeless*categories.This ensures focus and investment on the brands and categories that
38、will underpin the Groups future performance.The strategic portfolio is:Smokeless All brands within New Categories(Vapour,Heated Products and Modern Oral)and the strategic Traditional Oral brands in moist and snus.Combustibles Dunhill,Kent,Lucky Strike,Pall Mall,Rothmans,Newport(U.S.),Natural America
39、n Spirit(U.S.),Camel(U.S.).VapourVapour products contain an e-liquid,nicotine and flavours,and a battery-powered heating element.When activated,via puff or button,the heating element heats the liquid and forms an aerosol,commonly known as vapour.+Read more on page 28 and 29Global Drive BrandsHeated
40、ProductsHeated Products(HPs)have two main functional parts:a battery-powered device and a consumable-which contains a plant-based(tobacco leaf or non-tobacco leaf)substance that is heated.Once the consumable has reached the necessary temperature,it forms an aerosol releasing nicotine and flavours.+R
41、ead more on page 30 and 31Global Drive Brands33 marketswhere our Heated Products are currently availableBAT Annual Report and Form 20-F 2024Strategic ReportGovernance ReportFinancial StatementsOther InformationOverviewOur Multi-Category Portfolio463 marketswhere our Vapour products are currently ava
42、ilableBuilding a Smokeless World via Smokeless productsNotes:BATs New Category products are not smoking cessation devices and are not marketed for that purpose.*Based on the weight of evidence and assuming a complete switch from cigarette smoking.These products are not risk free and are addictive.Ou
43、r products as sold in the U.S.,including Vuse,Velo,Grizzly,Kodiak,and Camel Snus,are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.Modern OralModern Oral products are pouches which contain high-purity nicotine,water,and other high-qua
44、lity ingredients.Consumers place the disposable pouch within the mouth,between the lip and gum.Nicotine and flavours are then released and absorbed through the inner lining of the mouth.+Read more on page 32 and 33Global Drive Brands44 marketswhere our Modern Oral products are currently availableTra
45、ditional OralTraditional Oral products include snus and snuff.Snus is a moist form of oral tobacco originating from Sweden.It is available in loose form or as pouches.With Traditional Oral products,consumers take a single portion or pouch and place it within the mouth,between the lip and gum.The nic
46、otine and flavours are then absorbed through the inner lining of the cheek.+Read more on page 34Global Drive Brands3 marketswhere our Traditional Oral products are currently availableCombustiblesThe Group sold 505 billion cigarette sticks and 13 billion othertobacco products(stickequivalents)in 2024
47、.With37fully integrated cigarette manufacturing facilities in 35markets,the Group operates internationally.+Read more on page 35 and 36Global Drive BrandsU.S.-specificBAT Annual Report and Form 20-F 2024Strategic ReportGovernance ReportFinancial StatementsOther Information5In 2024,we saw yet another
48、 year of significant challenges across the globe,with continued economic and political volatility.The impact of these issues was further exacerbated by high interest rates and inflation,alongside persistent cost-of-living pressures.As a result,major economies have witnessed changes in consumer confi
49、dence and buying behaviours.Across our industry we have seen a rapid evolution of markets,like the U.S.,for example,where cigarette volumes have declined at pace as adult consumers seek out both value-for-money combustible products and smokeless alternatives.However,I believe that when changes and c
50、hallenges arise,so do opportunities to grow,overcome and even thrive.Transforming with PurposeAs a Board we have a responsibility to ensure that the Group delivers for stakeholders.In 2020,we began the journey of our A Better Tomorrow purpose.Four years on and our corporate purpose is being lived by
51、 thousands of colleagues globally.At the same time,our refined strategy is enabling us to navigate transformation with focus,enhanced execution and resilience.2024 was a year for BAT to build,invest,innovate and refine for a sustainable future,and it is crucial that shareholders have a clear view of
52、 the path ahead.We have invested in bolstering our U.S.business,and in new product development and launches across our categories,while thoughtfully extracting value from our combustibles franchise.All of this has been done through the lens of having a better understanding of adult consumers and our
53、 evolving industry.It has never been more important to maintain both momentum and strategic focus,and Im confident we will continue to do just that.Driving Sustainable ChangeOur Combined Annual and Sustainability Report gives a full view of BATs business strategy and performance.It also outlines our
54、 progress towards our purpose of ABetter Tomorrow and reaffirms our commitment to Building a Smokeless World.This is the third year that we have embedded our sustainability data into our Annual Report.It is also the first year that we have refined some of our focus areas from a sustainability perspe
55、ctive,demonstrating our ongoing efforts to create a meaningful impact.You can read more about our refined sustainability strategy on page 66.BAT Annual Report and Form 20-F 2024Strategic ReportGovernance ReportFinancial StatementsOther InformationOverviewChairs Introduction6Our corporate purpose is
56、being lived by thousands of colleagues globally.At the same time,our refined strategy is enabling us to navigate transformation with focus,enhanced execution and resilience.Luc JobinChairUltimately our goals have not changed.Ifanything,we are more acutely focused onhow we reach them.Meaning how we m
57、igrate adult cigarette consumers actively,sustainably and responsibly to reduced-risk*Smokeless alternatives,and importantly,how we measure success.In doing so,BAT will be well positioned to deliver for investors,consumers and wider stakeholders,while employees can benefit from a purpose-driven busi
58、ness that they can feel excited about.Our Values and CultureA happy and engaged workforce moving intandem typically leads to better performance,productivity and a sense of pride.It is here that our six corporate Values and cultural transformation play an important role,as they contribute to BATs suc
59、cess and strategic delivery.The key istobring everyone along on the journey,soexpectations and behaviours are clear,along with what needs to be achieved.To be an exciting and winning company means being a place where our people are passionate about what they do and the difference they make.It is als
60、o about understanding and being invested in BATs success.Market DynamicsWith over one billion adult smokers in the world,there are many jurisdictions which,with the right regulatory approach,could see smoking rates decline faster through greater acceptance of Smokeless products.We know that Tobacco
61、Harm Reduction encouraging smokers who would otherwise continue to smoke to switch completely to less risky alternatives*is the fastest route to achieving a Smokeless World.This is why were actively working with various stakeholders to make this a reality.The growth of adult smokers seeking Smokeles
62、s alternatives is a long-term,sectoral trend.In many countries,the challenges presented by illicit trade continue to persist across the industry.This is a problem for both combustibles and New Category products,intensified by increasing costs in regions across the world.We believe more appropriate r
63、egulation and enforcement isneeded to tackle these issues,and we welcome signs of increasing action.Building a Smokeless WorldOur aim to reduce the health impact of our business remains prominent,and one of the ways in which we are demonstrating our resolve on these issues is through our science.We
64、took a step forward in October by publishing a series of new industry-leading ambitions for our Vapour devices,supported by evidence-based solutions.BATs Commitment to Responsible Vaping Products is a comprehensive resource which sets out how we intend to tackle some of the most pressing societal co
65、ncerns.We believe that growth within the Smokelesscategory will be driven by sustainedinvestment in our brands and targeted innovation to respond to the evolving tastes of adult consumers.With our multi-category portfolio,BAT is well placed to capitalise on this adult consumer shift to Smokeless pro
66、ducts while continuing to manage the combustible cigarette business responsibly.Together with active portfolio management,we recognise that investing in our brands is fundamental to sustaining BATs performance for the future.Dividends and Share Buy-backsReflecting the confidence in our business and
67、its future prospects,the Board has declared a dividend of 240.24p per ordinary share,payable in four equal instalments of 60.06p per ordinary share,to shareholders registered on the UK main register or the South Africa branch register and to American Depository Shares(ADS)holders,each on the applica
68、ble record dates.The dividends receivable by ADS holders in US dollars will be calculated based on the exchange rate on the applicable payment dates.Further information on dividends can be found on page 54 of the Financial Performance Summary and page 449 in the Shareholder Information section.As pa
69、rt of our active capital allocation,in March we launched a programme to buy back BAT ordinary shares worth 1.6 billion using proceeds from a partial share disposal of the Groups shareholding in ITC Limited(ITC).The first tranche of the programme saw the buy-back of BAT ordinary shares for a total am
70、ount of 700million in 2024,with the remaining 900 million due to complete in2025.We continue to carefully review our capital allocation to provide value for shareholders and support the growth of BAT.Board ChangesI was very pleased to welcome Soraya Benchikh to our Board this year.Soraya joins the B
71、oard as Chief Financial Officer and Director,and she possesses extensive financial and leadership experience.I would like to congratulate Soraya on her appointment,and I look forward to her contribution.With the breadth of experience and skills that we have on the Board,I am confident that our focus
72、 on accelerating our strategy will yield results.Additionally,Uta Kemmerich-Keil will join the Board with effect from 17 February 2025.With her general management background in regulated industries and her experience in consumer,digital and strategic transformation,she makes a strong addition to our
73、 Board.Murray Kessler will step down from the Board with effect from 17 February 2025 and I would like to thank him for his contributions and wish him well in his new endeavours.Summary and OutlookIt is encouraging that the outlook for the year ahead according to some economists is one of cautious o
74、ptimism.While its fair to say that there are still some clouds on the horizon from a geopolitical and economic standpoint,our business has demonstrated time and time again that it is resilient.The diverse nature of our organisation,products,people and geographies are our strengths.Building a sustain
75、able future isnt always linear,and that was the priority for BAT in 2024.Looking ahead to the next few years,our efforts will be focused on delivery and innovation across the markets we serve globally.Through continued investment in our brands and prioritising adult consumers and their preferences,t
76、he Board believes we are well placed to maximise opportunities in tobacco and nicotine as consumer preferences evolve.These markets remain attractive,and we are confident we have the right strategy in place,an exciting and winning culture,and the right people to deliver.Progress in these dimensions
77、has bolstered our ability to execute consistently and sustainably.Tadeu discusses this in more detail on page9.BATs Board and leadership team remain focused and confident in the Groups ability to deliver long-term,sustainable growth and value,while delivering A Better Tomorrow.Notes:*Based on the we
78、ight of evidence and assuming acomplete switch from cigarette smoking.These products are not risk free and are addictive.Our products as sold in the U.S.,including Vuse,Velo,Grizzly,Kodiak,and Camel Snus,are subject to FDA regulation and no reduced-risk claims will be made as tothese products withou
79、t agency clearance.BAT Annual Report and Form 20-F 2024Strategic ReportGovernance ReportFinancial StatementsOther Information7Our six corporate Values and cultural transformation play an important role,as they contribute to BATs success and strategic delivery.When I was appointed Chief Executive in
80、May 2023,I set out to do two things:bring focus and discipline to the execution of our strategy,and deliver profitable transformation.Despite a challenging external environment,I believe 2024 was a pivotal year in BATs transformation with a real focus on investment for future growth.We set a compell
81、ing ambition to be a predominantly Smokeless business by 2035,driven by our refined strategy,and this is already paying dividends.Our global footprint and multi-category product portfolio have enabled us to continue to deliver resilient performance and value for shareholders even during uncertain ti
82、mes.This,combined with our inclusive and delivery-focused culture,means we can achieve results today while pursuing future opportunities,reinforcing our commitment to enhance shareholder returns.The foundations we have in place are strong.Looking ahead,strategic delivery and deployment are where we
83、will focus our efforts to create A Better Tomorrow.Full-Year 2024 Performance Despite a challenging environment,the resilience of BAT was reflected in our 2024 performance.Our focus on investment throughout the year is evident,with delivery in line with our guidance.Total Group revenue declined by 5
84、.2%,largely due to the negative impact of the sale of our businesses in Russia and Belarus,partway through 2023(and which,in turn,had an impact on 2024)and a translational currency headwind.We continued to perform well in both AME and APMEA,growing total revenue(excluding Russia and Belarus and fore
85、ign exchange).Iam pleased with the acceleration of our performance in the second half of the year,driven by the phasing of New Categories innovation andthe benefits of investment in U.S.commercial actions,together with the unwind of related wholesaler inventory movements.In the U.S.,I am encouraged
86、that our investment approach is strengthening our business,despite a challenging macro-economic backdrop and the continued prevalence of illicit single-use nicotine products.Through our commercial actions,we are confident we can further improve our performance through sharper execution and by openin
87、g up untapped growth opportunities,particularly related to Modern Oral.Our New Categories delivered another strong performance,after achieving profitability(at a category contribution level)two years ahead of plan last year.In2024,New Category contribution was 249 million,with category contribution
88、reaching 7.1 ppts.Revenue from our Smokeless products accounted for 17.5%of Group revenue.BAT Annual Report and Form 20-F 2024Strategic ReportGovernance ReportFinancial StatementsOther InformationOverviewChief Executives Overview8We set a compelling ambition to be a predominantly Smokeless business
89、by 2035,driven by our refined strategy,and this is already paying dividends.Tadeu MarrocoChief Executive2024 also saw further progress towards an agreement regarding the ongoing litigation in Canada.I am pleased that there appears to be a pathway to an agreement of all parties which we believe will
90、enable the Group to continue to transform in this important market.While the headwinds in our operating environment remain,I am assured by the strength demonstrated by the business.However,the prospect of ongoing volatility gives us even more impetus for sharper strategic focus and delivery.A Refine
91、d StrategyI believe we have the right strategy to drive us forward to greater success.2024 was an investment year,paving the way towards our ambition.The direction of travel is clear,and execution and cultural transformation are where we are focusing.One of my highlights of 2024 was leading our Capi
92、tal Markets Day in Southampton,where my Management Board showcased the progress made against priority areas for the business.From achieving profitability of our New Categories business two years ahead of schedule to improving our financial flexibility and strong cash generation,it is evident that ou
93、r strategy is working.Another highlight for me this year was the launch of OmniTM,a dedicated resource created by BAT specifically for scientists,public health authorities,regulators,policy makers and investors.It articulates our progress towards A Smokeless World,and demonstrates how science,innova
94、tion and over a decades worth of evidence can combine to achieve it.None of this would be possible without the48,000+talented people who work at BAT,who are guided by BATs core values every day.The truly inclusive culture we are building will ensure we have the talent to deliver both now and in the
95、future.Further details on our new people strategy and culture transformation can be found on pages 3839.Our refined strategy is now embedded across the business,and it is fundamentally built upon three pillars:Quality Growth,Sustainable Future and Dynamic Business.Together they form a roadmap which
96、we believe will enable BAT to continue to grow and transform sustainably,responsibly and successfully.Quality GrowthAs the driving force behind our transformation,our Quality Growth pillar is about how we innovate,transition into the future,and deliver great products in a sustainable way for consume
97、rs.With a more balanced focus on top-line and bottom-line delivery,we are already seeing results in AME and APMEA.Meanwhile,our investments in the U.S.have put us on a stable footing which will enable us to replicate that success.Despite recent challenges,the U.S.remains the most profitable tobacco
98、and nicotine market in the world and I believe it will be the cornerstone of our future growth.We will maximise our growth potential by focusing on brands,efficiency and margin delivery across our business.At the same time,we will continue to build and maintain our competitive edge,while progressing
99、 our Beyond Nicotine portfolio and investments with an eye to medium-and long-term growth.Effective regulation,both in the U.S.and the rest of the world,will be pivotal to ensure a level playing field and to allow consumers to switch to Smokeless alternatives if they choose.Our long track record of
100、managing regulatory change gives us confidence that we will be able to navigate these issues.Sustainable FutureThe Sustainable Future pillar is crucial toachieving our goal of creating A Better Tomorrow by Building a Smokeless World.It emphasises our investment in the quality of our Smokeless produc
101、ts driven by science,and our commitment to further external engagement and advocacy,including with regulators,to make our purpose a reality.Sustainability and integrity remain a priority in everything we do as we work to provide more adult consumers around the world with access to Smokeless products
102、 responsibly.Dynamic BusinessBuilding further on BATs success,the Dynamic Business pillar reflects our commitment to ensuring the business operates efficiently and effectively across allareas.This will be achieved by creating financial flexibility to invest in our people,our products and to maximise
103、 shareholder returns.Our new Chief Financial Officer,Soraya Benchikh,and I will be working closely together to build on our financial foundation.We will also continue our disciplined approach,with a focus on capital allocation and debt management.With a leverage ratio of 2.44x,inside our narrowed le
104、verage target range of 2.0-2.5x adjusted net debt to adjusted EBITDA,we have increasing flexibility to deliver sustainable value,while remaining agile to respond to macro-economic and regulatory developments.As part of our active capital allocation,in March we announced a 1.6 billion share buy-back
105、programme,consisting of 700million in 2024 and 900 million in 2025.This,in addition to maintaining a growing dividend,reflects our commitment to enhancing shareholder returns.Ensuring that BAT is a diverse,inclusive and people-oriented place to work is another core part of the Dynamic Business pilla
106、r.I am truly proud of the culture we have built and the thousands of people across the globe who are bringing BATs ambitions to life.Looking Ahead with ConfidenceWhat is clear to me is that our refined strategy is right and the foundations were building upon are firm.We are transparent about our int
107、ention tomove our business beyond cigarettes bymigrating adult smokers from cigarettes to Smokeless products.What we wont do is shy away from the challenges that may come as a result.An example of this in 2024 was the launch of our new industry-leading ambitions for our Vapour devices and liquids,su
108、pported by evidence-based solutions,to tackle some of the most pressing societal concerns.We are actively engaging with stakeholders,and investing heavily in our science,innovation and resource to enable us to execute with precision and achieve high quality,long-term growth with sustainability and i
109、ntegrity throughout.Our transformation journey is well underway,and we are an organisation ready to deliver,with operational excellence and improving capital allocation flexibility for the benefit of all stakeholders.The future is bright for BAT.I am excited about the difference we can make,and the
110、potential we have to Build a Smokeless World and drive A Better Tomorrow.Notes:1.Please refer to the Non-GAAP section from page 395 forthe Non-GAAP measures definitions.*Based on the weight of evidence and assuming acomplete switch from cigarette smoking.These products are not risk free and are addi
111、ctive.Our products as sold in the U.S.,including Vuse,Velo,Grizzly,Kodiak,and Camel Snus,are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.BAT Annual Report and Form 20-F 2024Strategic ReportGovernance ReportFinancial StatementsOther
112、Information9The future is bright for BAT.I am excited about the difference we can make,and the potential we have to Build a Smokeless World and driveABetter Tomorrow.Non GAAPOur Performance Metrics2024%2023%2022IFRS GAAPTransformationIncentive-2024Incentive-2025Other Non-GaapConsumerNumber of Smokel
113、ess Product Consumers1(see page 392)29.1m25.5m22.3mCigarette and HP volume share growth(bps)10 bps-10 bps-10 bpsCigarette and HP value share growth(bps)-30 bps-50 bpsflatVolumeVapour(mn units)616-6%654+7%612HP(bn sticks)21-12%24-1%24Modern Oral(bn pouches)8.3+55%5.4+34%4.0Cigarettes(bn sticks)505-9%
114、555-8%605FinancialRevenue(m)25,867-5.2%27,283-1.3%27,655 Organic Revenue at cc(%)2,3,5+1.3%+3.1%Revenue from New Categories(m)3,432+2.5%3,347+15.6%2,894 Organic Revenue from New Categories at cc(%)2,5+8.9%+21.0%Smokeless revenue as%of total revenue(%)17.5%16.5%Profit/(loss)from Operations(m)2,736n/m
115、-15,751-250%10,523 Adjusted Organic Profit from Operations atcc(%)2,3,5+1.4%+3.9%Adjusted Organic Gross Profit growth at cc(%)2+0.5%n/aNew Category Adjusted Organic Gross margin at cc(%)1.2,5 55.7%53.7%New Category Contribution at cc(m)2,5249n/m17n/m-366New Category Contribution margin at cc(%)2,5 7
116、.1%0.9%Operating Margin(%)10.6%-57.7%38.1%Adjusted Operating Margin(%)346.0%45.7%44.9%Diluted Earnings/(Loss)per Share(p)4136.0n/m-646.6-322%291.9 Adjusted Diluted Earnings per Share(p)3,4362.5-3.5%375.6+1.1%371.4Adjusted Organic Diluted Earnings per Share at cc(%)2,3,4,5+3.6%+5.2%Dividends per Shar
117、e(p)240.24+2.0%235.52+2.0%230.88Dividend Payout Ratio(%)66.3%62.7%62.2%Net Cash Generated from Operating Activities(m)10,125-5.5%10,714+3.1%10,394 Adjusted Cash Generated from Operations(m)7,554-3.4%7,824-0.8%7,889Free Cash Flow before Dividends(m)7,901-5.5%8,360+3.9%8,049Cash Conversion(%)370%-68%9
118、9%Operating Cash Conversion(%)101%100%100%Borrowings,including Lease Liabilities(m)36,950-7.0%39,730-7.9%43,139 Adjusted Net Debt to Adjusted EBITDA(ratio)3 2.4x2.6x2.9xAdjusted Return on Capital Employed(%)312%11%10%Total Shareholder Return(rank)5 of 1513 of 244 of 24Find our key sustainability amb
119、itions,targets and metrics on page 69+Please refer to the Non-GAAP section from page 395 for the Non-GAAP measures definitions.See the section Non-Financial Measures on page 391 for moreinformation on these non-financial KPIs.Notes:Denotes phrase,paragraph or similar that does not form part of BATs
120、Annual Report on Form 20-F as filed with the SEC.1.Excludes Russia and Belarus.2.Where measures are presented at constant rates or at cc,the measures are calculated based on a re-translation,at the prior years exchange rates,ofthe current year results of the Group and,where applicable,its segments.S
121、ee page 58 for the major foreign exchange rates used for Group reporting.3.Where measures are presented as adjusted,they are presented before the impact of adjusting items.Adjusting items represent certain items of income and expense which the Group considers distinctive based on their size,nature o
122、r incidence.4.In 2023,the Group reported a loss for the year.Following the requirements of IAS 33,the impact of share options would be antidilutive and is therefore excluded,for 2023,from the calculation of diluted earnings per share,calculated in accordance with IFRS.For remuneration purposes,and r
123、eflective of the Groups positive earnings on an adjusted basis,Management included the dilutive effect of share options in calculating adjusted diluted earnings per share.5.This measure is presented as it forms part of the Groups incentive schemes and is presented excluding the distortive effect of
124、the sale(in 2023)of the Groups businesses in Russia and Belarus.BAT Annual Report and Form 20-F 2024Strategic ReportGovernance ReportFinancial StatementsOther InformationOverviewOur Year in Numbers10 BAT Annual Report and Form 20-F 2024Strategic ReportGovernance ReportFinancial StatementsOther Infor
125、mationIntroducing Omni 11Forward Thinking for a Smokeless WorldReview the evidence.Join the conversation.Tobacco Harm Reduction presents a significant public health opportunity.It is our hope that Omni will spur a dialogue with stakeholders scientists,public health authorities,regulators,policy make
126、rs,and investors and across the wider scientific and regulatory ecosystem related to tobacco and nicotine products.Omni is an evidence-based manifesto for change,which captures BATs commitment and progress towards Building a Smokeless World to create A Better Tomorrow.It makes a compelling case,offe
127、ring insights into our scientific and real-world evidence of Tobacco Harm Reduction(THR)in action,supported by hundreds of independent scientific studies,our own research into innovations,and real-world examples.Our ambition is for Omni to be a platform for a necessary societal conversation founded
128、in evidence,a manifesto for change and a mandate for action.Kingsley Wheaton Chief Corporate OBAT Annual Report and Form 20-F 2024Strategic ReportGovernance ReportFinancial StatementsOther InformationOur StrategyOur Strategic Navigator12Purpose/Vision/MissionPillars&Building BlocksWe are BAT:Our Val
129、uesDelivering forConsumersSocietyEmployeesShareholders&InvestorsQuality GrowthIn the tobacco and nicotine industry,steady combustibles revenues and growth of New Categories have driven continued revenue growth.Meanwhile,only around 10%of the worlds one billion smokers have Switched to Better*,replac
130、ing combustibles with Smokeless products.The opportunities for future growth,as we look to accelerate this transformation,are vast.Our human and financial resource allocation decisions will be guided by the geographies and products we focus on,aided by our market archetype.We will enhance our innova
131、tion ecosystem to achieve our aim of developing an incredible pipeline of new,scientifically substantiated products.Our combustibles business remains essential to funding our transformation andcontinuing to reward our shareholders.To enhance BATs growth beyond 2025,inBeyond Nicotine we will pave the
132、 way toa new portfolio of non-nicotine-based products.Within this space,there are two categories that BAT is exploring:Wellbeing and Stimulation functional consumable products that help people manage their mood and wellbeing;and cannabis.Our commitments under Quality Growth:Progressing toward qualit
133、y,margin-accretive growth in Smokeless productsFMC volume decline but expecting continuing value deliverySensibly investing for the future Beyond NicotineFor more details on the Quality Growth pillar of our refined strategy,see page 26+Sustainable FutureIn recent years real strides have been made wi
134、th Tobacco Harm Reduction(THR).As a result,there are now three significant global Smokeless tobacco and nicotine product categories:Vapour products,Heated Products and Modern Oral nicotine products.Reducing the health impact of our business via THR is our ambition,which we believe is achievable by m
135、igrating more smokers to Smokeless products and advocating for the right regulatory environments for these products to flourish.We must do this responsibly and with integrity.We recognise and support the objective ofgovernments to reduce smoking rates and its associated health impact.Combustible tob
136、acco products pose serious health risks.The only way to avoid these risks is not to start or to quit smoking.For those adults who would otherwise continue to smoke or start smoking,we believe they should be able to make better choices by opting for Smokeless alternatives instead of cigarettes.Our ef
137、forts will be led primarily by science,supported by ongoing active external engagement with regulators and key stakeholders,while embedding sustainability across the Group.As we transition from cigarettes to Smokeless products,our transformation must be comprehensive addressing not only our products
138、 public health impact but also our other material sustainability topics.Our commitments under Sustainable Future:Building a Smokeless WorldInvesting in the products,science andengagement to make A Better Tomorrow a realityConducting our business sustainably and with integrityFor more details on the
139、Sustainable Future pillar of our refined strategy see page 60+Dynamic BusinessWe are confident that we can create the financial flexibility to invest in our people,enhance our products and deliver returns to shareholders.Our commitment to building an organisation where people and performance come to
140、gether to create excellence remains.Thisis why creating an exciting,winning company is one of the building blocks of the Dynamic Business pillar.Additionally,delivering value for shareholders through sustainable returns remains essential to achieving our strategic ambition.For more than 25 years we
141、have consistently grown the dividend per ordinary share in absolute terms.We have returned over 27.5 billion to shareholders over the last five years,through our progressive dividend policy and sustainable share buy-back,starting with 700 million in 2024 with a further 900million committed for 2025.
142、We have also continued to reduce leverage and closed the year within our narrowed target range,with an adjusted net debt to adjusted EBITDA ratio of 2.44x.Reducing gross debt is another core component of the Dynamic Business pillar.The Group continues to target a solid investment-grade credit rating
143、 target of Baa1,BBB+and BBB+by Moodys/S&P/Fitch.Given current challenges in the external environment,the Group aims to de-lever itsgross debt levels(37.0 billion in 2024)and moderate the annual net financing cost levels to better support the overall strategy of the Group.While net financing costs we
144、re 1.1 billion in 2024,this included a net gain in respect of a debt liability management exercise(described on page 55)of 590 million.On an adjusted basis,our net finance costs were 1.6 billion in 2024.Our commitments under Dynamic Business:Creating a diverse,inclusive and people-oriented place to
145、workBeing data-driven and delivering operational excellence/cost managementFocused on investors returnsFor more details on the Dynamic Business pillar of our refined strategy,see page 38+BAT Annual Report and Form 20-F 2024Strategic ReportGovernance ReportFinancial StatementsOther Information13Note:
146、*Based on the weight of evidence and assuming a complete switch from cigarette smoking.These products are not risk free and are addictive.Our eight-step business modelOur business model begins and ends with the consumer.The insights we gather from adult consumers,backed by robust science,unlock valu
147、e by ensuring we offer the right product choices to meet their preferences.Our product portfolio is constantly being enhanced through innovations designed to better serve adult consumers and build A Better Tomorrow.Following the responsible sourcing of raw materials and components,we utilise our glo
148、bal footprint to manufacture atspeed and scale.We use our global distribution capabilities to ensure our products are where they need to be,when they are needed,based on our market archetype model.Through our responsible marketing practices and powerful portfolio,we market and sell our products whic
149、h,inturn,generate further insights.Read more about our stakeholders on page 18 and 19+BAT Annual Report and Form 20-F 2024Strategic ReportGovernance ReportFinancial StatementsOther InformationOur StrategyOur Business ModelAs a global thought-leading business,its crucial for us to understand our adul
150、t consumers preferences,so we can develop products they love and distribute them around the world.Listening to feedback from stakeholders also enables us to refine our strategy,deliver sustainable value and build A Better Tomorrow.14Seeing over the horizonWe possess a deep understanding ofconsumers
151、and their diverse preferences.This is aided by our rich heritage as one of the most established tobacco and nicotine businesses in the world,and our data and analytics-led approach.These insights enable the development and responsible marketing of our products,so that they are fit to satisfy consume
152、r preferences.Powered by our consumer insights platform,we focus on product categories and consumer segments across our global business that have the greatest potential for sustainable growth.Link to Principal RisksTobacco,New Categories and other regulation interrupts growth strategy;Inability to d
153、evelop,commercialise and deliver theNewCategories strategy;Climatechange;Circular economy;Cyber securityAccelerating Tobacco Harm Reduction acceptanceTo substantiate the product safety,quality and reduced-risk potential of our New Category products we rely on world-class science.It is crucial for bu
154、ilding trust with consumers and regulators,and encouraging adult smokers to completely switch to less risky alternatives*1.Chemistry,molecular biology,and toxicology are just some of the fields that our extensive scientific research programme covers.We are transparent about our science and have rece
155、ntly published a compendium of information in the Omni,which explores over a decades worth of Tobacco Harm Reduction evidence,alongside science and research.Link to Principal RisksCompetition from illicit trade;Tobacco,New Categories and other regulation interrupts growth strategy;Significant increa
156、ses or structural changes in tobacco,nicotine and New Categories related taxes;Inability to develop,commercialise and deliver the New Categories strategyRead more about our science at +Staying ahead of the curveWith consumer preferences and technology evolving at pace,we rely on our growing global n
157、etwork of digital hubs,innovation hubs,world-class R&D laboratories,external partnerships and our corporate venturing initiative,Btomorrow Ventures.Innovation is central to us driving sustainable growth,and we invest significantly in research and development to create incredible products that satisf
158、y consumer tastes.Led by data and consumer insights,each innovation takes us astep further towards building ABetter Tomorrow by reducing thehealth impact of our business.Link to Principal RisksInability to develop,commercialise and deliver the New Categories strategy;Climate change;Circular economy;
159、Cyber securitySourcing materials responsiblyMost of our tobacco is sourced by our Group-owned vertically integrated Leaf Operations through direct contracts with c.91,000 farmers.The remaining tobacco issourced from third-party suppliers that,inturn,contract with an estimated 157,000 farmers.The vas
160、t majority oftobacco farmsin our supply chain are smallholder family farms.Beyond tobacco,we source product materials like paper and filters for cigarettes and,for our New Category products,we have a growing supply chain in consumer electronics and e-liquids.We also have a vast network of suppliers
161、of indirect goods and services that are unrelated to our products,such as for IT services and facilities management.Link to Principal RisksGeopolitical tensions;Supply chain disruption;Inability to develop,commercialise and deliver the New Categories strategy;Injury,illness ordeath in the workplace;
162、Solvency and liquidity;Foreign exchange rate exposures;Climate change;Circular economy;Cyber securityRead more about our supplychain on page 109+Utilising our global manufacturing footprintOur high-quality products are manufactured in our facilities across the globe.These products and the tobacco le
163、af we source are then optimised for distribution and sale.Our New Category products are manufactured in a mix of our own andthird-party factories.We work to keep our costs globally competitive and endeavour to use our resources as effectively as possible.Link to Principal RisksGeopolitical tensions;
164、Supply chain disruption;Disputed taxes,interest and penalties;Injury,illness or death in the workplace;Solvency and liquidity;Foreign exchange rate exposures;Climate change;Circular economyMoving our products seamlessly everywhereUsing modern technologies,including AI and machine learning,helps us t
165、o get our products to the right place at the right time.Our products are sold around the world and distributed efficiently using distribution models tailored to suit local circumstances and conditions.These distribution models include retailers,supplied through our direct distribution capability or
166、exclusive distributors,and our Direct-to-Consumer business which has been accelerated through the deployment of owned e-commerce sites.Link to Principal RisksGeopolitical tensions;Tobacco,NewCategories and other regulation interrupts growth strategy;Supply chain disruption;Inability to develop,comme
167、rcialise and deliver the NewCategories strategy;Foreign exchange rate exposures;Climate change;Cyber securityMarketing our products responsiblyUsing a globally responsible approach to marketing,we seek to help raise standards and prevent under-age access,while growing our market share by encouraging
168、 adult consumers to choose our products.Our marketing across all our tobacco,nicotine and nicotine-free products and brands is governed by our Responsible Marketing Principles(RMP)and Responsible Marketing Code.They include strict requirements to be accurate,responsible,and targeted at adult consume
169、rs only.Our RMP are applied even when they are stricter than local laws.Link to Principal RisksCompetition from illicit trade;Tobacco,New Categories and other regulation interrupts growth strategy;Inability to develop,commercialise and deliver the New Categories strategy;Litigation;Foreign exchange
170、rate exposuresRead more about responsible marketing on page 77+Offering theconsumer choice We are proud of our powerful portfolio of brands.This includes ourcombustibles portfolio and our Smokeless product brands which webelieve will accelerate us towards our strategic aim.Our product pipeline is st
171、rong,aided by our quality insights,science and innovation,andbeing well-positioned globally.We offer adult consumers all over theworld a range of high-quality products from value-for-money topremium,including combustible products,Vapour,Modern Oral andHeated Products.Link to Principal RisksCompetiti
172、on from illicit trade;Geopolitical tensions;Tobacco,NewCategories and other regulation interrupts growth strategy;Supply Chain disruption;Litigation;Significant increases or structural changes in tobacco,nicotine and New Categories related taxes;Inability to develop,commercialise and deliver the New
173、 Categories strategy;Disputed taxes,interest and penalties;Foreign exchange rate exposures;Circular economyBAT Annual Report and Form 20-F 2024Strategic ReportGovernance ReportFinancial StatementsOther Information15Notes:*Based on the weight of evidence and assuming a complete switch from cigarette
174、smoking.These products are not risk free and are addictive.Our products as sold in the U.S.,including Vuse,Velo,Grizzly,Kodiak,and Camel Snus,are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.A Better Tomorrow for:ConsumersAdult consu
175、mers are at the core ofeverything we do and our success isunderpinned by addressing their preferences,offering them a choice ofenjoyable,innovative and less risky products*.Measured by:63Countries where Vapour products are available33Countries where Heated Products are available44Countries where Mod
176、ern Oral products are availableSuppliersAcross the BAT Group,we work withthousands of different suppliers worldwide.Our suppliers are valued business partners and we believe,byworking together,we can raise standards,drive sustainable practices,create shared value and build ABetter Tomorrow for all.C
177、ustomersOur customers include retailers,distributors and wholesalers who are essential for driving growth and embedding responsible marketing practices.Our PeopleWe employ 48,000+people worldwide.Attracting andretaining an increasingly diverse workforce and providing a welcoming,inclusive working en
178、vironment are key drivers inBATs transformation journey to build ABetter Tomorrow.Our focus is on providing adynamic,inspiring andpurposeful place to work.Measured by:84%Engagement Index score in our Your Voice employee survey0.12Lost Time Incident Rate(LTIR)vs 0.17 in 202344%Proportion of women in
179、Management roles Accredited as Global Top Employer by the Top Employers InstituteBAT Annual Report and Form 20-F 2024Strategic ReportGovernance ReportFinancial StatementsOther InformationOur StrategyOur Business ModelContinued16Note:As at 31 December 2024.Refer to the BAT Reporting Criteria for a fu
180、ll description of key terms and definitions believe the greatest contribution we can make tosociety is Building a Smokeless World and reducing the health impact of our business.We will do this by encouraging those smokers who would otherwise continue to smoke to switch completely to Smokeless altern
181、atives.Achieving this,while working to reduce our impacton the environment,iscentral to delivering ABetter Tomorrow.Measured by:29.1mConsumers of Smokeless products31%Reduction of waste generated(vs 2017 baseline)-42.6%Reduction in Scope 1&2 emissions from our 2020 baselineNotes:*Based on the weight
182、 of evidence and assuming acomplete switch from cigarette smoking.These products are not risk free and are addictive.Our products as sold in the U.S.,including Vuse,Velo,Grizzly,Kodiak,and Camel Snus,are subject toFDA regulation and no reduced-risk claims will be made as to these products without ag
183、ency clearance.Refer to the BAT Reporting Criteria for a full description of key terms and definitions at are committed to delivering sustainable and superior returns to ourshareholders and investors.It is essential that we maintain the support of our shareholders and investors to enable access to c
184、apital.This allows us to implement our strategy and achieve ourbusiness objectives.Measured by:3-5%Revenue growth over themedium term65%A progressive dividend being a65%dividend payout ratio over the long term2-2.5xDeleveraging the balance sheet into our 2.0-2.5x adjusted net debt to adjusted EBITDA
185、 target rangeMedium-term,4-6%increase in adjusted profit from operations growth(excluding currency)Non-Financial and Sustainability Information StatementNon-financial and sustainability information reporting required under theUK Companies Act isincluded in theStrategic Report as referenced below:Our
186、 business model is set out on pages 14 to 17+See pages 155 to 162 for Group Principal Risks+See page 10 and page 69 for the Groupsfinancial and non-financial keyperformance indicators+Our reporting in the following areas includes information about the policiesandprinciples that govern our approach,d
187、ue diligence processes,outcomes and non-financial performance indicators:Environmental matters pages 65 to 71,78 to 101,114 to 117,and 120 to 152+Social matters pages 65 to 71 and 102 to 117+Anti-bribery and anti-corruption matters pages 114 to 119+Employees pages 38 to 39,68 to 71,110 to 116 and 18
188、2 to 183+Respect for human rights pages 65,102 to 109,and 110 to 117+Our climate-related financial disclosures are set out on pages 120 to 136.Further details of our Group policies,procedures and standards can be foundon pages 116 and 117 and at .BAT Annual Report and Form 20-F 2024Strategic ReportG
189、overnance ReportFinancial StatementsOther Information17 ConsumersShareholders&InvestorsOur PeopleWhy this stakeholder isimportant to usAs preferences and attitudes change in an evolving industry,understanding our adult consumers is essential to bothsuccessful portfolio and businessgrowth.It is essen
190、tial that we maintain the support of our shareholders and bondholders to maintain access to capital.This allows us to implement our strategy and achieve our businessobjectives.The quality of our people is a major reason why our Group continues to perform well.We understand the valueof listeningand r
191、esponding tofeedbackfrom our people to maintaina fulfilling,rewarding andresponsible work environment.Examples of how we engaged in 2024 Consumer panels,focus groups andinterviews Consumer care helplines Responsible marketing and transparent communication Real-time digital platforms Annual General M
192、eeting Investor relations programme andshareholder engagement,including onourDirectors Remuneration Policy Institutional shareholder meetings Capital Markets Days Investor roadshows Results announcements Annual Report and Form 20-F Suite of focused sustainability reports and wider disclosures Stock
193、exchange announcements Shareholder information on website Launch of Omni Director market and site visits Virtual forums Employee town halls Global and regional webcasts Your Voice employee surveys Works councils and European Employee Council meetings Graduate and management traineeevents Individual
194、performance reviews Speak Up channelsWhat matters to ourstakeholders Health impact of our products andother socialconsiderations Product quality Affordability and price Ingredients/nicotine levels Plastics/post-consumption productwaste Business performance Sustainability agenda Corporate governance
195、Strength of Group leadership Board succession planning Reward Career development Diversity and inclusion Corporate responsibility Health and safety Business ethicsHow we respond Development of innovative products Product stewardship,quality and safety standards Clear and accurate product information
196、 Responsible Marketing Principles and Responsible Marketing Code Circular economy strategy andinitiatives Regular dialogue and communications with shareholders and investors Robust corporate governance Double Materiality Assessment andreview of reporting landscape Continual improvement of our Delive
197、ry with Integrity programme Our range of enjoyable and innovative products Product quality and safety standards Responsible Marketing Principles and Responsible Marketing Code Extensive communications and engagement with our people worldwide during and following thepandemic Board review of and feedb
198、ack onworkforce engagement Training and development programme Diversity&Inclusion Strategy Delivery with Integrity programmePrincipal risk impact Competition from illicit trade Tobacco,New Categories and other regulation interrupts growth strategy Supply chain disruption Significant increases or str
199、uctural changes in tobacco,nicotine and New Categories related taxes Inability to develop,commercialise and deliver the New Categories strategy Climate change Circular economy Cyber security Competition from illicit trade Geopolitical tensions Tobacco,New Categories and other regulation interrupts g
200、rowth strategy Litigation Significant increases or structural changes in tobacco,nicotine and New Categories related taxes Inability to develop,commercialise and deliver the New Categories strategy Disputed taxes,interest and penalties Solvency and liquidity Foreign exchange rate exposures Climate c
201、hange Circular economy Cyber security Geopolitical tensions Supply chain disruption Injury,illness or death in theworkplace Climate change Circular economy Cyber securityBAT Annual Report and Form 20-F 2024Strategic ReportGovernance ReportFinancial StatementsOther InformationOur StrategyEngaging wit
202、h OurStakeholdersWe work with,take into account and respond to the views and concerns ofourstakeholders.This enables us toadapt to emerging risks and work to meet the expectationsplaceduponus as a multinational business.18 UK Companies Act:Section 172(1)StatementSuppliersCustomersGovernment&Wider So
203、cietyOur Directors have a duty,individually and collectively as the Board,to act as they consider most likely to promote the success of the Company for the benefit of our members as a whole.As part of this duty,our Directors must have regard for likely long-term consequences of decisions and the des
204、irability of maintaining a reputation for high standards of business conduct.Our Directors must also have regard for our employees interests,business relationships with our wider stakeholders,the impact of our operations on the environment and communities in which we operate and the need to act fair
205、ly between shareholders.Consideration of these factors and other relevant matters is embedded into all Board decision-making,strategy development and risk assessment throughout the year.Our key stakeholders and primary ways in which we engage with them are set out in the table to the left.Pages 164,
206、172 to 175 and 178 to 184 provide further explanation of our Boards approach to understanding stakeholder interests to enable relevant considerations to be drawn oninBoard discussion anddecision-making.Where the Board delegates authority for decision-making to management,our Group governance framewo
207、rk discussedon pages 172 and 173 mandates consideration ofthese factors and other relevant matters as a critical part of delegated authorities.Examples of some of the ways thatthese factors have shaped Group strategy and initiatives during the year are referenced inthe table to the left.Examples of
208、how these factors have been takeninto account inBoard decision-making andstrategy development during theyear are provided onpage 184.Note:Although financial materiality has been considered in thedevelopment of our Double Materiality Assessment(DMA),our DMA and any conclusions in this document as to
209、the materiality or significance of sustainability matters do not imply that all topics discussed therein are financially material to our business taken as a whole,and such topics may not significantly alter the total mix of information available about our securities.Effective relationships with farm
210、ers andsuppliers of tobacco leaf,product materials and indirect services are essential to an efficient,productive andsecure supply chain.Our customers include retailers,global and local key accounts,distributors and wholesalers that are essential for driving growth and embedding responsible marketin
211、g practices.We seek to be part of the debate that shapes the regulatory environment inwhich we operate,and to work collaboratively to develop joint solutions to common challenges.Extension Services farmer support Ongoing dialogue and relationship management Supplier Voice survey,events andsupplier s
212、ummits Strategic partnerships Ongoing dialogue and account management Customer Voice survey Audits/performance reviews Sales calls and visits by trade representatives B2B programmes Digital B2B eCommerce platforms Meetings and ongoing dialogue Submissions to government andadvisory committees Multi-s
213、takeholder partnerships andworking groups External Scientific&Regulatory Panel Peer-reviewed research Biodiversity standards and improvement programmes Community investment programmes and NGO partnerships Double Materiality Assessment related engagements Launch of Omni Productivity/quality/cost Sust
214、ainable agriculture Farmer livelihoods Human rights Health and safety Climate changeimpacts Double Materiality Assessment andreview of reporting landscape Route-to-market planning Contingency planning Cost,price and quality Stock availability Consumer buying behaviour Underage access prevention Digi
215、tal B2B eCommerce platforms Product regulation Tax/excise/illicit trade Responsible marketing Public health impacts Human rights Climate change impacts Supplier Code of Conduct Sustainable agriculture and farmer livelihoods programme Leaf operational standards for PPE and child labour prevention Far
216、mer Extension Services support and training Customer loyalty programmes andincentives Global Underage Access Prevention(UAP)Guidelines and initiatives Standards of Business Conduct(SoBC)Delivery with Integrity programme Targeting 50%absolute reduction in Scope 1 and 2 GHGemissions by2030(vs 2020 bas
217、eline)Human rights and climate impactassessments Community investment programmes and charitabledonations Geopolitical tensions Supply chain disruption Inability to develop,commercialise and deliver the New Categories strategy Injury,illness or death intheworkplace Solvency and liquidity Foreign exch
218、ange rate exposures Climate change Circular economy Cyber security Competition from illicit trade Geopolitical tensions Tobacco,New Categories and other regulation interrupts growth strategy Supply chain disruption Significant increases or structural changes in tobacco,nicotine and New Categories re
219、lated taxes Inability to develop,commercialise and deliver the New Categories strategy Climate change Circular economy Cyber security Competition from illicit trade Geopolitical tensions Tobacco,New Categories and other regulation interrupts growth strategy Litigation Significant increases or struct
220、ural changes in tobacco,nicotine and New Categories related taxes Inability to develop,commercialise and deliver the New Categories Strategy Disputed taxes,interest and penalties Climate change Circular economy Cyber securityBAT Annual Report and Form 20-F 2024Strategic ReportGovernance ReportFinanc
221、ial StatementsOther InformationListening to our stakeholders helps us better understand their views and concerns,and enables us to respond to them appropriately.It gives us valuable inputs to,and feedback on,our strategic approach,as well as ourpolicies,procedures and ways of working.19wBAT Annual R
222、eport and Form 20-F 2024Strategic ReportGovernance ReportFinancial StatementsOther InformationOur StrategyChief Financial Officers Overview:Investment Case20Soraya BenchikhChief Financial Officer50%Group revenue ambition from Smokeless products by 203550mConsumers of our Smokeless products by 2030 a
223、mbition 3-5%Expected medium-term Group revenue growth 4-6%Expected medium-term Group adjusted profit from operations growth 50bnTotal free cash flow before dividends expected to be generated between 2024 and2030.We are committed to delivering sustainable shareholder returns by driving quality New Ca
224、tegory growth and extracting value from Combustibles,together with maximising cash generation to fund our progressive dividend andsustainable share buy-back.Soraya BenchikhChief Financial OfficerDownload our new Investor Relations app to access live share prices,news,reports and webcasts at: Annual
225、Report and Form 20-F 2024Strategic ReportGovernance ReportFinancial StatementsOther Information21Transformation Driving QualityGrowthOur corporate purpose is to build A Better Tomorrow by reducing the health impact of our business.To accelerate the next phase of our transformation,we are committed t
226、o Building a Smokeless World.We will deploy our global multi-category portfolio to actively encourage adult smokers to Switch to Better nicotine products,and continue to seek long-term opportunities Beyond Nicotine in Wellbeing and Stimulation,realising the multi-stakeholder benefits of A Better Tom
227、orrow.Our commitment is demonstrated by our ambition to become apredominantly smokeless business,with over 50%of our revenue from Smokeless products by 2035.Revenue growth in the global nicotine industry is accelerating through the development of New Categories,which offer reduced-risk alternatives*
228、to smoking.We continue to make progress towards our target of 50million adult consumers of our Smokeless products by 2030,adding another 3.6 million in 2024 to a total of 29.1 million.Prioritising where and what products to focus on,via our market archetype model,will guide our resource allocation d
229、ecisions.Weare profitable within our New Categories business,on a category contribution basis,andwe expect to be increasingly profitable in the coming years.We strive to continue to profitably and responsibly manage ourtransition away from combustibles,generating funds to further invest in our trans
230、formation and deliver sustainable profit growth and cash flow over the long-term.In order to achieve this,our refined strategic pillars will act as our executional compass,and we will drive performance using KPIs to track our journey.Building a Sustainable Future forOurStakeholdersBuilding a Sustain
231、able Future is about seeking to actively migrate consumers away from cigarettes and to Smokeless alternatives sustainably,responsibly and with integrity.We seek to take a leading role in tackling some of the biggest global issues in sustainability.We intend to do this by responsibly Building aSmokel
232、ess World,reducing our use ofnatural resources and delivering our climate goals as we transition to ABetter Tomorrow.We strive to create ameaningful impact in the communities where we operate andinspire all our people to drive change.In 2024,we refined our sustainability strategy to better address o
233、ur material topics and continue to deliver greater value to our stakeholders,with five strategic delivery areas:1.Tobacco Harm Reduction,2.Climate,3.Nature,4.Circularity,and 5.Communities.Action plans to address these focus areas are underway,and ourcommitments in each are rooted in ambitions and ta
234、rgets against which we will track and share the progress as our transformation continues.Science will be a primary driver of our efforts,supported by more active external engagement and regulatory focus,while embedding sustainability across the organisation.As we continue working towards reducing th
235、e health and sustainability impact of our business,we will drive growth,create shared value and build a stronger,more sustainable BAT.For more details on the five strategic delivery areas,see page 67.Dynamic Business Making Active Choices fortheFutureOur multi-category portfolio benefits from decade
236、s of consumer insights that have driven our No.1 global revenue position in combustibles.In addition,leveraging the benefits of our expertise in science and R&D,our manufacturing,distribution and marketing has enabled us to build three global brands,Vuse,glo and Velo,delivering over 3 billion of ann
237、ual revenue in less than a decade.Our long-standing experience operating within complex regulatory,legal and fiscal frameworks provides uswith a compelling competitive advantage to transform within the wider tobacco industry in the long-term.With ourCorporate and Regulatory Affairs function we are d
238、riving a more proactive,science-led engagement with all stakeholders.We will continue to increase investment in new capabilities,including enhancing our innovation pipeline,leading responsible New Category development and further leveraging our broad digital enablers.Our transformation will also be
239、accelerated by a culture of inclusivity and collaboration,supported by senior talent recruitment from a diverse range of industries.Together with our Chief People Officer,we are focused on developing a skills-enabled and performance-driven organisation.We continuously monitor and assess our capital
240、allocation framework to:unlock shareholder value through investing in theright opportunities;optimise the return on our investments;andmaximise our cash generation;reduce our leverage andgenerate sustainable cash returns for our shareholders.Continuing our Track Record ofDeliveryWe are confident in
241、our growth outlook,and have aproven track record of performance.Over the last 10 years,we have delivered 8%adjusted diluted EPS growth(at constant rates)and a 5%dividend CAGR and are confident in moving progressively to our medium-term targets of3-5%revenue growth and 4-6%adjusted profit from operat
242、ions growth on a constant currency basis by 2026.The Group is highly cash generative.Over the last five years,we have delivered at least 100%operating cash conversion annually and returned,since 2020,a total of 27.5 billion to shareholders.We expect to deliver in excess of 50 billion of free cash fl
243、ow before dividends between 2024 and 2030(inclusive).We remain committed to continuing our track record of consistent dividend growth for over a quarter of a century,rewarding our shareholders through all economic cycles.In 2024 we initiated a sustainable share buy-back programme starting with 700 m
244、illion in 2024 and 900 million in 2025.We have an active capital allocation framework to deliver long-term value for shareholders.This includes:a progressive dividend;operating within our target leverage corridor of 2.0-2.5x adjusted net debt to adjusted EBITDA;considering potential bolt-on M&A oppo
245、rtunities to accelerate our transformation;and sustainable share buy-back programmes to enhance shareholder returns.Notes:*Based on the weight of evidence and assuming acomplete switch from cigarette smoking.These products are not risk free and are addictive.Our products as sold in the U.S.,includin
246、g Vuse,Velo,Grizzly,Kodiak,and Camel Snus,are subject toFDA regulation and no reduced-risk claims will be made as to these products without agency clearance.I am honoured and delighted to be the Chief Financial Officer of BAT.I am confident that we are in a strong position to deliver on our ambition
247、s,and Ishare the passion and conviction to Build aSmokeless World.Our strategy is designed to maximise shareholder sustainable returns.Our key financial focus areas are:fuelling our transformation as wemaximise value from combustibles,using our scale and efficiencies to release cash;deploying capita
248、l in a disciplined and targeted manner.This means investing wisely in the largest profit pools whilst maintaining a laser focus on return on investment;strengthening our financial position by reducing debt,providing us with greater financial resilience;anda balanced capital allocation approach prior
249、itising our transformation while delivering aprogressive dividend,maintaining a sustainable share buy-back programme and exploring bolt-on acquisitions.We believe we will achieve our priorities through an algorithm built around five key drivers.Our five key drivers are:Quality revenue growth.Increas
250、e our adjusted gross profit.Accelerate New Category contribution.Sustainable growth in Adjusted Profit from Operations.Deliver in excess of 50billion of free cash flow by 2030.Notes:*On an organic,constant rate basis.*Category contribution:Profit from operations before the impact of adjusting items
251、and translational foreign exchange,having allocated costs that are directly attributable to New Categories.*On an adjusted,organic,constant rate basis.Net cash generated from operating activities before the impact of trading loans provided to a third party and after dividends paid to non-controlling
252、 interests,net interest paid and net capital expenditure.Net cash generated from operating activities before the impact of adjusting items and dividends from associates and excluding trading loans to third parties,pension short fall funding,taxes paid and net capital expenditure,as a proportion of a
253、djusted profit from operations.Adjusted gross profit as defined on page 399.BAT Annual Report and Form 20-F 2024Strategic ReportGovernance ReportFinancial StatementsOther InformationOverviewChief Financial Officers Overview:Our performance22Our strategy is expected to deliver shareholder value creat
254、ion as:Combustibles fuel our transformationTargeted capital deployment focuses onreturn on investment Soraya BenchikhChief Financial Officer2024 financial performance summaryOur financial results have been impacted by a number of events that impacted the current and comparator period.In 2024,revenue
255、 was down 5.2%to 25,867 million(having declined 1.3%in 2023 to 27,283 million).This was partly due to the timing of the sale of our Russia and Belarus businesses in September 2023,negatively impacting the comparative revenue and profit from operations by 479million and 193 million,respectively.Profi
256、t from operations was 2,736 million,against a loss of 15,751 million in 2023.2023 was also negatively impacted by the impairment charges(27.3 billion)largely associated with our U.S.combustibles business.2024 included a total charge of6.2 billion in respect of the anticipated settlement of Canadian
257、litigation(see page 328),the first year of amortisation charges of the U.S.combustibles brands(1.4 billion),acharge of 646million in respect of Camel Snus,a charge of 449 million in respect of an excise assessment in Romania and 149million of fixed asset impairments related to the Groups London head
258、 office and the intention to seek an orderly exit from Cuba.In 2024,translational foreign exchange was a headwind on both revenue(by 4.7%)and profit from operations(by 4.4%).Excluding these items,on a constant currency basis,which we believe reflects the operational performance of the Group:Revenue
259、was up 1.3%driven by the continued growth of New Categories,which grew revenue by 8.9%;and Adjusted profit from operations was up 1.4%,as New Categories further grew profitability(at the category contribution level)building on the momentum shown in 2023 as those products became profitable two years
260、earlier than originally planned.On a reported basis,basic EPS was 136.7p compared to-646.6p in 2023,which was a decline of 320.5%.Diluted EPS was 136.0p in 2024,while in 2023 it was-646.6p,or down 321.5%.This was mainly due to the impacts to profit from operations described earlier,offset by a one-o
261、ff gain of1.4billion,recognised as the Group monetised a portion of the investment inits Indian associate ITC and a credit of0.6 billion related to debt refinancing undertaken in 2024.Excluding the adjusting items(discussed on pages 50 and 51)and the effect of translational foreign exchange,adjusted
262、 diluted earnings per share,atconstant rates,increased by 1.7%to381.9p,building on the 4.0%growth in2023.We remain highly cash generative.This allows us to balance investment in the future while rewarding shareholders with afurther increase individends(up 2.0%to240.24p),while targeting our narrowed
263、leverage range of 2.0-2.5x adjusted net debt to adjusted EBITDA-reaching 2.44x in2024.However,excluding the provision recognised in respect of cash and cash equivalents and investments held at fair value,and adjusted EBITDA earned,in Canada,this would have been 2.75x.Delivering our financial algorit
264、hmQuality revenue growthWe aim to maximise the value from combustibles while driving growth in our New Categories through innovation and premiumisation.Excluding the impact of currency:Combustibles pricing remained a driver of value,withGroup price/mix of 5.3%in2024(compared to 7.5%in2023).However,o
265、ur combustibles revenue was down 1.6%(2023:down 0.8%),driven by lower combustibles volume(down 9.0%in 2024)largely due to the difficult trading in the U.S.where volume was 10.1%lower.Both years were also impacted by the timing of the sale of ourbusinesses in Russia and Belarus,excluding which would
266、have seen a marginal growth of 0.1%in 2024 and growth of 0.6%in 2023.New Categories revenue was up 6.1%in 2024 and 17.8%in 2023,with growth(excluding the impact of Russia and Belarus)driven by all three regions as the increases in Modern Oral and HP more than offset a decline in Vapour.Increase our
267、adjusted gross profitWe aim to continually increase our adjusted gross profit*,as defined on page 399.Adjusted gross profit is a new measure,introduced in 2024,with comparative movements to 2023 only.Total adjusted gross profit*,on a constant currency basis,grew by 396 million,an increase of 2.2%in
268、2024.Adjusted gross profit from our combustibles portfolio,through pricing and efficiencies,has remained resilient,up0.3%in 2024.The main driver of growth has been New Categories,which has improved in each of the last four years.This continued in 2024 with an increase of 19.8%in adjusted gross profi
269、t,driven by volume growth,revenue growth management programmes and cost optimisation.Accelerate New Category contributionWe will continue to invest in our transformation.We will focus on the right opportunities in the key growth areas-evaluating opportunities to maximise returns,freeing up resources
270、 for growth and incremental profit.In 2023,this resulted in our New Categories being profitable(on a contribution basis),two years ahead ofour original plan.In 2024,we have further increased New Category contribution by 251 million(at constant rates),withNew Category contribution margin at 7.1%up fr
271、om 0.0%in 2023(excluding the impact of the businesses sold in Russia and Belarus).Sustainable growth in Adjusted Profit from OperationsAdjusted profit from operations*,on aconstant currency basis,was up 1.4%in2024,having grown 3.1%in 2023.This is supported by our strict management of overhead expens
272、es.Weare committed to disciplined cost management and to continue to explore opportunities to optimise our footprint.In 2024,our cost optimisation programmes delivered savings of 402 million.This largely offset the impact of inflation of 6.5%(or 387million),mainly due to higher leaf prices(impacted
273、by adverse weather conditions)and manufacturing costs(labour and utilities)and which we expect to continue into 2025 due to the timing andutilisation ofleaf inventory.We have committed to deliver cost savings of over 1.2 billion in the three years to 2025(with over 70%delivered to date)and an additi
274、onal 2 billion from 2026 to 2030.Deliver in excess of 50billion of free cash flow(2024-2030)Our operating cash conversion,as defined on page 406,has been ahead of our 90%target for a number of years.In 2024,we again delivered ahead of expectations at 101%.The Group remains highly cash generative.Exc
275、luding material payments in areas such as the Canadian litigation settlement,repayments in respect of FII GLO(refer to page287),we expect to generate over 8billion of average annual free cash flow before dividends,growing atleast in line with adjusted profit from operations.In 2024,the Group generat
276、ed 10.1 billion(2023:10.7 billion)ofnet cash generated from operating activities.This translates to 7.9 billion(2023:8.4 billion)of free cash flow before dividends.Since 2020,we have returned 27.5 billion to shareholders,including a 700 million share buy-back programme in 2024,with afurther 900 mill
277、ion committed for 2025.Yet our leverage ratio(being adjusted net debt to adjusted EBITDA)has continued toimprove towards our narrowed target range,decreasing from 2.57times to2.44 times.Our liquidity profile remains strong,with average debt maturity close to 9.5 years and maximum debt maturities in
278、any one calendar year of around 4 billion.We continue totarget a solid investment-grade credit rating of Baa1,BBB+and BBB+,with a current rating ofBaa1(stable outlook),BBB+(stable outlook),BBB+(stable outlook)from Moodys,S&P and Fitch*,respectively.Facing the Future with IncreasingConfidenceWe belie
279、ve our business is well placed for the future.Our track record of delivering robust financial performance and consistent cash generation demonstrates how we navigate the near-term macro-economic uncertainties and challenges,underpinned by geographic diversity and a portfolio of international brands.
280、BAT Annual Report and Form 20-F 2024Strategic ReportGovernance ReportFinancial StatementsOther Information23Notes:*Excluding the sale of Russia and Belarus.*A credit rating is not a recommendation to buy,sell orhold securities.A credit rating may be subject to withdrawal or revision at any time.Each
281、 rating should beevaluated separately of any other rating.Denotes phrase,paragraph or similar that does not form part of BATs Annual Report on Form 20-F as filed with the SEC.As a global business,operating at scale within a rapidly evolving landscape,our markets are shaped by long-term consumer,econ
282、omic,cultural and social trends.We continue to respond to this changing environment by developing and advancing our strategy and long-term priorities.Megatrends:BAT Annual Report and Form 20-F 2024Strategic ReportGovernance ReportFinancial StatementsOther InformationOur StrategyOur Markets and Megat
283、rends24TECHNOLOGY AND INNOVATIONData-Driven ConsumersTechnology and data are transforming consumer behaviours in profound ways.Wearable devices like fitness trackers and smartwatches deliver real-time insights into physical activity,heart rate,sleep and more.This feedback empowers consumers to make
284、more informed,better choices.By analysing patterns in daily habits,companies can also refine their products and services,placing consumers firmly at the centre of product design.This consumer-focused,data-driven approach is impacting sectors across the board.The nicotine industry In the nicotine ind
285、ustry,for example,data and connectivity are enabling innovations such as age-restriction locks and other restrictions on devices and ensuring products meet safety standards and are compliant with regulations.Additionally,new nicotine products are emerging that allow users to track their consumption
286、patterns,while advanced technology can deliver consistent dosages and customisable features allow consumption to be tailored to individual preferences.CLIMATE CHANGE AND CIRCULAR ECONOMYClimate ChangeConsumers are increasingly urging companies to commit to the principles of Net Zero emissions and ci
287、rcular economy.Studies indicate that two thirds of consumers want brands to reduce their environmental impact,with this expectation increasingly influencing purchasing decisions.Businesses that fail to meet these expectations risk reputational damage and loss of market share.Adapting to the realitie
288、sSimultaneously,the tangible effects ofclimate change are becoming more apparent.Extreme weather events are now more frequent,disrupting communities and causing displacement.Adaptation to climate change is becoming as essential as taking preventive measures.With the political will to address climate
289、 change fluctuating across regions,businesses must also anticipate and adapt to climate-related disruptions within their supply chains.This involves building resilience through strategies such as sourcing diversification,adopting climate-resilient infrastructure,and strengthening logistics flexibili
290、ty.GEOPOLITICS AND TRADENew Leadership2024 was a record year for electoral activity,with over 50 jurisdictions,including the United States and various countries across the European Union,holding major elections involving more than 2 billion voters overall.Among the notable developments,in the UK,the
291、 Labour Party achieved its first victory in 14 years,campaigning on a platform for change.In the United States,both the executive and legislative branches pivoted to new leadership.Trade policyIn 2025,businesses are likely to face both opportunities and challenges in navigating these new political l
292、andscapes.Many sectors are watching closely for policy signals from newly elected governments,particularly around trade,which may be subject to new strategic priorities or even potential frictions under new leadership.Further elections are also due to take place in Australia,Canada and Germany.Meanw
293、hile,persistent global conflicts,including the war in Ukraine and tensions in the Middle East,add layers of complexity to the geopolitical environment.Some of the broader global impacts of the unrest,such as high inflation,appear to be reducing,having negatively impacted our results by 387million in
294、 2024 as discussed on page 50.However,these ongoing challenges will continue to influence political and economic stability,underscoring the importance of adaptive strategies for businesses and governments alike in the year ahead.OverviewThe global nicotine market continues to evolve rapidly,with hea
295、ted tobacco and oral nicotine products gaining traction.Itisalso increasingly complex with new andReduced-Risk Products*(RRPs)being developed and brought to new markets each year.Global Market for Combustibles and SmokelessThe most recent sales data for the legal global tobacco and nicotine market i
296、ndicated that it was worth approximately US$927 billion(incl.China).Combustible cigarettes remained the largest product category within the market,with a global value of US$763 billion,representing 82%of the total value of tobacco and nicotine product sales worldwide.Around 2.8 trillion cigarettes w
297、ere sold globally,based on the most recently available data.The value of the global Smokeless products market continues to grow,standing at US$76billion.Despite combustibles being one of the most highly regulated products in the world,roughly 17%of the worlds adult population(incl.China)continue to
298、choose to smoke.This sizeable group is likely to continue to smoke unless they are offered suitable smokeless alternatives.The illicit marketThe illicit tobacco market has continued toincrease since the COVID-19 pandemic,reaching just above 14%of total global volume in 2024.Exacerbated by the increa
299、sed cost-of-living in many countries,overall illicit volumes are expected to approach an unprecedented level of sales by 2027.Illicit trade exists in all world regions,but its growth is forecast to worsen in the Middle East and Africa,Australasia and Asia Pacific.Global combustible regulationCombust
300、ible tobacco products are among the most regulated consumer goods globally.Some of the more established measures in different countries include restrictions on flavour additives,standardised(or plain)packaging,bans onsmoking in public areas,and prohibitions on displaying tobacco products at points o
301、fsale.These policies aim to curb tobacco use by reducing its appeal and accessibility.More recently,and driven in part by World Health Organization(WHO)initiatives,countries are setting smoke-free targets,aiming to reduce tobacco use prevalence to below 5%by specified dates.Some countries have also
302、begun examining new types of restrictions on products to meet these targets.Canada,for example,has recently passed legislation to require health warnings be placed on cigarette sticks,a policy which Australia is also looking at.A small number of countries are considering prohibitionist approaches to
303、 stop smoking among younger generations.The UK,under a new government,has re-initiated examination of a bill which would ban sales of cigarettes to anyone born after 2008.The Turkish Government is reported to be drafting a bill with similar provisions,while both the Australian and Norwegian Governme
304、nts have indicated they are evaluating comparable policies.Additionally,some individual lawmakers in various countries and in some regional legislatures have attempted to introduce bills aiming to ban sales of tobacco to future generations.New Zealand and Malaysia were among the first countries to m
305、ove to implement this idea.However,in 2023,both countries reversed legislative efforts to introduce agenerational sales ban amid concerns about the constitutionality,practicality and enforcement of such measures.Lastly,environmental concerns have led toa rise in policy initiatives targeting combusti
306、ble materials.The EUs Single-Use Plastics(SUP)legislation mandates that Member States implement extended producer responsibility programmes for items including cigarette filters.A review ofthe SUP Directive is planned for 2027 toevaluate its impact and guide potential updates.A small number of other
307、 countries have also looked at banning the use of filters in cigarettes.Additionally,the United Nations is still considering a pioneering global Plastics Treaty,with some stakeholders pushing for specific targets that would require Member States to eliminate waste from cigarettes,as well asfrom sing
308、le-use vapour product consumption.See pages 155 to 162 to read more about our Group Principal Risks+For further discussion regarding the Regulation of the Groups Business,please see pages 436 to 440+Continued transition to new productsThe continued adoption of new and less-harmful*alternative nicoti
309、ne products is revolutionising the market.The range of these alternatives is expanding rapidly,now including tobacco heating products(THPs)and reduced-risk*,tobacco-free options such as vapour products,nicotine pouches,and,more recently,herbal products designed for heating.These alternatives are gai
310、ning popularity among smokers who wish to continue consuming nicotine but not via cigarettes.By 2028,it is estimated that the number ofadult smokers will have declined by 20million.Alongside societal changes inattitudes to smoking,this decrease is driven by consumer preferences shifting toRRPs*,whic
311、h are forecast to make up anincreasing percentage of revenue for thenicotine market.The most recent external forecast estimates the value of the Vapour product market at US$21 billion,with THPs valued at US$34billion.Closed-system vapour products have become rapidly popular among consumers,owing to
312、their ease of use.Nicotine pouches,which are one of the newer innovations in RRPs*,currently have a global value of US$7.4 billion in 2022(ledby the U.S.),which is projected to grow to just under US$16 billion by 2027.New Categories RegulationsWhile alternative nicotine products are gaining traction
313、 in markets worldwide,there is considerable variation among countries in how RRPs*are regulated.Thepotential benefits of RRPs*in reducing smoking-related harm have been embraced by regulators in the UK and New Zealand who have actively communicated that RRPs*are a better alternative to smoking.These
314、 countries have implemented regulatory frameworks that reflect this view while remaining vigilant about preventing youth access.In contrast,certain markets such as Brazil and India remain sceptical about the potential public health benefits of RRPs*,opting instead to restrict or ban access to these
315、products.While other countries have opted to ban specific categories or flavours thereby limiting choices for consumers.Forinstance,in Belgium the sale of nicotine pouches is now prohibited and in Kazakhstan vapour products are banned.It is increasingly pressing that this debate be better understood
316、 and guided by data so that millions of smokers are not deterred from switching to these less-harmful alternatives.In the U.S.,for example,where RRPs*are becoming widely established,youth use of tobacco products is falling.Beyond NicotineThe Wellbeing and Stimulation category covers products that co
317、nsumers are seeking to better manage their daily wellbeing.It is expected to grow to495billion by 2030,from around 296billion by most recent estimates.The adult-use cannabis market has also grown with global legal sales estimated to have reached US$49 billion.Though this growth is predominantly conc
318、entrated in the U.S.,the global cannabis market is anticipated to expand as more countries reassess their prohibitionist approaches.In Europe,Germany has become the first major EU Member State to legalise the personal cultivation and possession of cannabis for recreational use.Luxembourg and Malta h
319、ave already taken similar steps,and the Czech Republic is actively considering comparable measures.This regulatory shift may reflect a broader trend across countries as policymakers explore the potential health,social,and economic benefits of legalisation.Notes:All data sources on this page are from
320、 Euromonitor International research published in 2024 and based on 2023 data(the latest full year available),unless otherwise stated.All figures exclude China unless otherwise stated.*Based on the weight of evidence and assuming a complete switch from cigarette smoking.These products are not risk fr
321、ee and are addictive.Our products as sold in the U.S.,including Vuse,Velo,Grizzly,Kodiak,and Camel Snus,are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.BAT Annual Report and Form 20-F 2024Strategic ReportGovernance ReportFinancial S
322、tatementsOther Information25Quality GrowthDelivering Quality Growth emphasises thetransition to amore balanced focus on top-line and bottom-line delivery,centred around our brands and innovation,andcontinuing to seek long-term opportunities Beyond Nicotine.The key building blocks of theQuality Growt
323、h pillar are:Inspiring New Category Innovations&BrandsManaged Combustibles TransitionBeyond Nicotine FoundationsOur commitments underQualityGrowth:Progressing toward quality,margin-accretive growth in SmokelessFMC volume decline but expecting continued value deliverySensibly investing for the future
324、 Beyond NicotineInspiring New Category Innovations and BrandsSince the launch of our first Vapour product in 2013,we have been on a transformation journey to become a truly multi-category consumer products business.We are creating new Smokeless products that encourage adult smokers,who would otherwi
325、se continue to smoke,to switch to scientifically-substantiated,reduced-risk*alternatives.In 2024,our Quality Growth imperative delivered better returns on more targeted investments across all three of our New Categories.We have built a fast-growing portfolio of New Category products in a short perio
326、d of time with New Categories annual revenue now exceeding 3.4 billion.We further increased New Category contribution by 251 million(on a constant currency basis),with New Category contribution margin reaching 7.1%.Our focus on driving revenue growth and margin expansion will continue,leveraging our
327、 deep cross-category consumer insights.We aim to enhance our innovation pipeline by further investing in our capabilities,our intellectual property,our people and our science,driving an innovation-focused culture.Our centres of excellence in Southampton,Trieste and Shenzhen continue to provide acces
328、s to wider internal and external strategic partnerships focused on developing consumer-relevant premium propositions.Three New Category product types underpin our efforts to Build aSmokeless World:VapourOur global Vapour brand,Vuse,is the#1 brand in the category(intracked channels).It plays amajor r
329、ole in providing smokers with theopportunity to Switch to Better.Vapour revenue was down 5.1%to 1,721 million in 2024,largely driven by a lack of enforcement of illegal flavoured single-use vapour products in the U.S.and a flavour ban inthe province of Qubec in Canada where a lack of enforcement has
330、 also led to anincrease in the use of illicit products.Vapour was the largest contributor to New Categories usage reaching 11.9 million adult consumers,adding 0.1 million in 2024.For more information on our VapourProducts see page 28+Heated ProductsOur flagship Heated Product brand,glo,provides an a
331、lternative tosmoking that doesnt involve burning and,following scientific studies,producing lower levels of certain toxicants than cigarettes.Revenue for the category was down by 7.6%,due to the sale of our Russian and Belarusian businesses last year.The momentum for growth in Heated Products has be
332、en impacted by competitor innovation and intensified activity in the below-weighted average price segment.However,while glos performance has not met expectations,ournewly released innovations like Hyper Pro and veo,our non-tobacco heated platform consumables,have strengthened our pipeline and compet
333、itive position.Hyper Pro is now present across 29 markets.The Group was the first to introduce a distinct EasyView screen with HeatBoost technology for better performance.Due to this improvement and coupled with the revamp of our consumables portfolio,glo is now in a stronger position to compete in the premium segment and contribute to accelerating growth.glo continued to show early signs of categ
0731-84720580
sgpjbg002
工作日 9:30 - 18:00
研报
新质生产力
DeepSeek
低空经济
大模型
AI Agent
AI Infra
具身智能
自动驾驶
宠物
银发经济
人形机器人
企业出海
算力
微短剧
薪酬
白皮书
创新药
人工智能
AI产业
信息科技
互联网
消费经济
汽车交通
电商零售
传媒娱乐
医药健康
投资金融
能源环境
地产建筑
传统产业
英文报告
其它
最新报告
中英对照
全文搜索
报告精选
PDF上传翻译
多格式文档互转
入驻&报告售卖
会员权益
机构报告
券商研报
财报库
专题合集
英文报告
数据图表
会议报告
其他资源
行业聚焦
芯片产业
热点概念
全球咨询智库
人工智能
500强
新质生产力
会议峰会
新能源汽车
企业年报
互联网
公司研究
行业综观
消费教育
科技通信
医药健康
人力资源
投资金融
汽车产业
物流地产
电子商务
传统产业
传媒营销
其它
2025低空经济/低空产业报告合集（共50套打包）
2025全球前沿技术/科技趋势报告（共38套打包）
AI、科技与通信
广告、传媒与营销
消费、零售与支付
HR、文化与旅游
金融、保险与投资
能源、环境与工业
医疗制药与大健康
物流、地产与建筑
其他行业
AI ▪ 科技 ▪ 通信
数字化
金融财经
智能制造
电商传媒
地产建筑
医疗医学
能源化工
其他行业
收藏
下载
2025-06-09
AI查数
行业数据
政策法规
商业模式
产业链
竞争格局
市场规模
产业概述
其它
2025年
AI读财报
年报
一季报
半年报
三季报
IPO招股书
社会责任报告
A股
IPO申报
港股
美股&全球
新三板
扫码登录
手机快捷登录
账号登录
