British American Tobacco

Company Overview

British American Tobacco is a global company with over 200 brands sold in more than 200 markets. The organisation employs more than 50,000 people globally.

Board Members

Name	Position	Bio
Richard Burrows	Chairman	Richard Burrows joined the Board of British American Tobacco as a Non-Executive Director in September 2009 and became Chairman in November 2009. He is also Chairman of the Nominations Committee.
Nicandro Durante	Chief Executive	Nicandro Durante became British American Tobacco’s Chief Executive in March 2011. Nicandro has extensive leadership skills developed in various senior international roles in the Group. He originally joined the British American Tobacco as Chief Operating Officer in January 2008 after almost two years in the role of Regional Director for Africa & Middle East. Nicandro was appointed Chief Executive Designate in September 2010. Nicandro, who is Brazilian / Italian, holds degrees in finance, economics and business administration. He joined British American Tobacco’s Brazilian subsidiary Souza Cruz in 1981, after three years working in finance in two Brazilian companies and built a successful finance career. In 1995 he was seconded to the UK head office. In 1997 Nicandro was appointed Finance Director in Hong Kong before returning to Brazil in 2000 as Finance Director for Souza Cruz. In April 2002 he was appointed President of Souza Cruz. Nicandro was appointed as a Non-Executive Director of Reckitt Benckiser Group plc in December 2013.
Ben Stevens	Finance Director	Ben joined the Board of British American Tobacco p.l.c. in March 2008 and was appointed to the role of Finance Director in April 2008. He was previously Director of British American Tobacco’s Europe region, a position he had held since 2004. Ben has broad international experience spanning both senior finance and general management roles. He joined British American Tobacco in 1990 as Regional Finance Controller with responsibilities for Europe, East Africa and South Asia and in 1994 moved to Switzerland where he worked in a variety of marketing roles. In 1995 Ben became Chairman and Managing Director of the Pakistan Tobacco Company before being appointed Chairman and Managing Director of British American Tobacco Russia in 1997. In 1998 he returned to the UK as Head of Corporate Affairs for the newly listed British American Tobacco p.l.c. and in the following year was appointed Head of Merger Integration following the merger with Rothmans. He was appointed to the Management Board as Development Director in April 2001 where his responsibilities included corporate strategy, mergers and acquisitions and IT. Ben was elected as a member of the Board of Directors of ISS A/S on 5 April 2016. Ben, a graduate of Manchester University and the Manchester Business School, is married with two children.
Kieran Poynter	Senior Independent Director	Kieran Poynter became a Non-Executive Director of British American Tobacco p.l.c. in July 2010. He became Senior Independent Director in October 2016. He is Chairman of the Audit Committee and a member of the Nominations Committee.
Sue Farr	Non-Executive Director	Sue Farr was appointed to the Board of British American Tobacco p.l.c. as a Non-Executive Director in February 2015. She is a member of the Nominations and Remuneration Committees.
Dr. Marion Helmes	Non-Executive Director	Dr. Marion Helmes joined the Board of British American Tobacco p.l.c. as a Non-Executive Director on 1 August 2016. She is a member of the Audit and Nominations Committees.
Luc Jobin	Non-Executive Director	Luc Jobin was appointed to the Board of British American Tobacco p.l.c. as a Non-Executive Director on 25 July 2017 following completion of the acquisition of Reynolds American Inc. He is a member of the Nominations and Remuneration Committees
Holly Keller Koeppel	Non-Executive Director	Holly Keller Koeppel was appointed to the Board of British American Tobacco p.l.c. as a Non-Executive Director on 25 July 2017 following completion of the acquisition of Reynolds American Inc. She is a member of the Audit and Nominations Committees.
Savio Kwan	Non-Executive Director	Savio Kwan was appointed to the Board of British American Tobacco p.l.c. as a Non-Executive Director in January 2014. He is a member of the Nominations and Remuneration Committees.
Lionel L. Nowell, III	Non-Executive Director	Lionel Nowell, III was appointed to the Board of British American Tobacco p.l.c. as a Non-Executive Director on 25 July 2017 following completion of the acquisition of Reynolds American Inc. He is a member of the Audit and Nominations Committees.
Dimitri Panayotopoulos	Non-Executive Director	Dimitri Panayotopoulos was appointed to the Board of British American Tobacco p.l.c. as a Non-Executive Director in February 2015. He is Chairman of the Remuneration Committee and a member of the Nominations Committee.

Key Executives

Name	Position	Bio
Jerome Abelman	Director, Legal And External Affairs And General Counsel	Jerry was appointed Director, Legal and External Affairs and General Counsel in May 2015, having joined the Management Board as Group Corporate and Regulatory Affairs Director in January 2015. He has been with the Group for over 15 years and has held a number of roles in Legal. Jerry was Regional General Counsel, Asia-Pacific from 2010 to 2014, before becoming Assistant General Counsel – Corporate and Commercial. Jerry was a member of the Board of Reynolds American Inc. (RAI) from February 2016 until the acquisition of RAI in July 2017.
Jack Bowles	Chief Operating Officer	Jack became BAT’s Chief Operating Officer for the International Business in October 2017. Joining the Group in 2004, Jack was Chairman of British American Tobacco France in 2005 before taking up the role of Managing Director of British American Tobacco Malaysia in 2007. He joined the Management Board as Regional Director for Western Europe in October 2009 before becoming Regional Director for the Americas in October 2011. He was appointed Regional Director, Asia-Pacific in January 2013, a position he continued to hold until 1 January 2018 when a new regional structure came into effect.
Alan Davy	Director, Operations	Alan was appointed to the Management Board as Group Operations Director in March 2013. He joined the Group in 1988 and has held various roles in manufacturing, supply chain and general management. Alan previously held the position of Group Head of Supply Chain.
Giovanni Giordano	Director, Group Human Resources	Giovanni joined the Management Board of British American Tobacco in June 2011. He is an international human resources executive with wide experience from senior roles at Procter & Gamble and Ferrero, where he was Chief Corporate Officer.
Andrew Gray	Chief Marketing Officer	Andrew was appointed Chief Marketing Officer (CMO) in October 2017 having previously been BAT’s Marketing Director. In August 2017, BAT announced that it was fully integrating its Next Generation Products (NGP) business into the Group’s core operations. The expanded CMO role combines Marketing and R&D (including innovation and product development) across all categories – combustible cigarettes and NGP. Andrew joined the Management Board as Regional Director for Africa and the Middle East in January 2008 before being appointed Regional Director for Eastern Europe, Middle East and Africa (EEMEA) in January 2011 and then Marketing Director in September 2014. Joining Souza Cruz in Brazil as an intern in 1986, he went on to hold a number of senior management positions in South America and the Caribbean (including President of Souza Cruz) and also in Malaysia.
Tadeu Marroco	Regional Director, Europe And North Africa	Tadeu was appointed Regional Director, Europe and North Africa in January 2018. He joined the Management Board as Director, Business Development, in September 2014 and was appointed Regional Director, Western Europe in December 2016, a position he held until 1 January 2018 when a new regional structure came into effect and Tadeu took up his current role. He joined British American Tobacco in Brazil over 20 years ago and his other previous roles include Regional Finance Controller, EEMEA, and Group Finance Controller.
Dr. David O’reilly	Group Scientific And R&D Director	David was appointed Group Scientific Director in January 2012. He has been with British American Tobacco for over 20 years and has held various positions in Group Research and Development. He has led the Group’s R&D efforts to develop reduced toxicant products and has also been Head of International Public Health and Scientific Affairs, responsible for engagement with the scientific, medical and public health communities.
Ricardo Oberlander	President And Ceo, Reynolds American Inc.	Ricardo became President and CEO of Reynolds American Inc. (RAI) in January 2018. He was appointed to the Management Board as Regional Director for the Americas in January 2013. Ricardo joined Souza Cruz in May 1989 and has held various roles including Marketing Director of British American Tobacco’s Malaysian business, Regional Marketing Manager for the Americas, General Manager in France and Global Consumer Director. Ricardo was a member of the Board of RAI from December 2014 until the acquisition of RAI in July 2017. He is a member of the Chief Marketing Officer (CMO) Council North America Advisory Board.
Naresh Sethi	Director, Business Development	Naresh was appointed Director, Business Development in December 2016 with responsibility for Group Strategy and Planning, IT, Global Business Services and Enterprise Operating Model Transformation. He has been with British American Tobacco for more than 20 years and held Marketing roles in India, Indonesia, West Africa and Australasia before moving to Japan where he was Marketing Director and then General Manager. Naresh was also Group Head of Strategy and Planning before joining the Management Board in January 2012 as Director, Group Business Development and was appointed Regional Director, Western Europe in January 2013.
Johan Vandermeulen	Regional Director, Asia-Pacific And Middle East	Johan was appointed Regional Director, Asia-Pacific and Middle East in January 2018. He joined the Management Board as Regional Director for Eastern Europe, Middle East and Africa in September 2014, a position he held until 1 January 2018 when a new regional structure came into effect and Johan took up his current role. He has been with British American Tobacco for more than 25 years and his previous roles include General Manager in Russia, General Manager in Turkey and Global Brand Director for the Kent brand.
Kingsley Wheaton	Regional Director, Americas And Sub-Saharan Africa	Kingsley was appointed Regional Director, Americas and Sub-Saharan Africa in January 2018. He joined the Group in 1996 and has held a number of roles in Marketing. He was Marketing Director in Nigeria and Russia, before becoming General Manager in Russia. He was Global Brand Director responsible for the Kent and Vogue brands, before joining the Management Board in January 2012 as Deputy Corporate and Regulatory Affairs Director. In June 2012 he was appointed Director, Corporate and Regulatory Affairs. In January 2015, Kingsley became Managing Director, Next Generation Products (NGP), heading up this growing part of British American Tobacc’s business which is now integrated into the core operations so that we can leverage the scale and expertise of the whole Group to drive future growth in NGP.

Investments in Unconsolidated Subsidiaries ("significant" > 20 percent management control):

An unconsolidated subsidiary is a company that is owned by a parent company, but whose individual financial statements are not included in the consolidated or combined financial statements of the parent company to which it belongs. Instead, this type of company appears in the combined financial statement as an investment.

Subsidiary Name	Country	Interest amount (percentage)	Interest Type	Notes
Emirati Investors-TA (FZC)	United Arab Emirates	49	Equity

List of Significant Subsidiaries

Subsidiary Name	State or Country of Organization	Region
Philip Morris Japan Limited	Japan	East Asia & Australia

2018 Forecast

...

Profitability

Annual trends

Fiscal year (January to December)(in billions USD)	2017	2016	2015	2014	2013
Revenues or Net Sales	$--.--	$--.--	$--.--	$--.--	$--.--
Gross Profit	$--.--	$--.--	$--.--	$--.--	$--.--

Profits per region (in millions USD)

Region

Region	2017	2016	2015	2014	2013
Net Revenues		$-	$-	$-
Excise taxes on products		$-	$-	$-
Net Revenues, excluding excise taxes on products		$-	$-	$-
Operating companies income		$-	$-	$-

Acquisitions

Recent acquisitions	Acquired Organization Name	Acquiring Organization Name	Announced Date	Value
x acquired by y	x	y	z/zz/zzzz	$0.00

Investments

At 31 December 2015, the following substantial interests (3% or more) in the Company’s ordinary share capital (voting securities) had been notified to the Company in accordance with Section 5.1.2 of the Disclosure Rules and Transparency Rules. As at 24 February 2016, the Company had not received notification either of any change in the interests below or that any other person holds 3% or more of its ordinary shares.

In 2015, the organisation has completed the acquisition of TDR in Croatia, the leading independent cigarette manufacturer in Central Europe. British American Tobacco also acquired the rest of the shares in its Brazilian subsidiary, Souza Cruz, not currently owned by the Group and de-listed the company the same year.

In 2015, British American Tobacco signed a vapour products technology-sharing agreement with R.J. Reynolds Tobacco Company. The agreement provides a framework for collaboration and mutual cross-licensing of the parties’ vapour product technologies up to 31 December 2022. British American Tobacco completed the acquisition of the CHIC Group, the market-leading Vapour Product (e-cigarette) business in Poland.

In 2015, British American Tobacco continued to grow market share of Vype in the UK and expanded the geographical footprint of its Next Generation Product business beyond the UK, with launches of Vype in France, Germany, Italy, Poland and Colombia. Additionally, British American Tobacco’s first Tobacco Heating Product, the ‘glo iFuse’, was launched in Romania, with excellent initial levels of consumer acceptance.

Investments	Organizational Name	Funding Type	Money Raised	Announced Date
a	b	c	d	zz/zz/zzzz

Volumes

Volume of Cigarettes by Region

Region	2017 (Billions) (percent)	2016 (Billions)	2015 (Billions)	2014 (Billions)	2013 (Billions)
Region 1	- (-)	-	-	-	-
Region 2	- (-)	-	-	-	-
Region 3	- (-)	-	-	-	-
Region 4	- (-)	-	-	-	-
Total	- (-)	-	-	-	-

Product unit volume

Product Category	2017	2016	2015	2014	2013
Tobacco Units (in billions)	-	-	-	-	-
Heated tobacco (in billions)	-.-	-.-	-.-	-.-	-.-
Total	-.-	-.-	-.-	-.-	-.-
Percentage	-.-	-.-	-.-	-.-	-.-

Combustibles and non-combustibles

Traditional tobacco range

British American Tobacco offers three core product ranges: 1. Fine Cut (roll-your-own and make-your-own tobacco) 2. Swedish-style snus 3. Cigars

Next Generation products

The Next Generation Products include: 1. Vapour Products (e-cigarettes), a battery-powered electronic devices which heat a solution to create a vapour which can be inhaled; 2. Tobacco Heating Products, devices designed to work with specifically engineered cartridges, containing tobacco, to deliver a real tobacco taste and aroma; 3. Licensed Medicinal Products, licensed nicotine products to help smokers reduce, replace or stop.

Marketing

CSR

The organisation’s sustainability focus is on three key areas: harm reduction, sustainable agriculture and farmer livelihoods and corporate behaviour: We are committed to operating to the highest standards of corporate conduct and transparency.

Advertisements and bad acts review

{{quote |"With respect to plain packaging, we have always believed that the policy is not proportionate, will not deliver the intended results and will significantly erode our Intellectual Property Rights. Consequently, we have reluctantly taken legal action to protect shareholders’ interests." |Nicandro Durante, 2018"

Partners and Allies

Marketing and Public Relations

Name	Contract Status	Notes	Other Clients
FTI (2017)	Active	FTI Consulting is an independent global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. Individually, each practice is a leader in its specific field, staffed with experts recognized for the depth of their knowledge and a track record of making an impact. UK PR Agency for BAT	Yahoo! Inc Jackson Walker LLP Liquidation Trustee - Bernard L. Madoff Investment Securities Sportsman's Warehouse TXCO Resources
Sard Verbinnen (2017)	Active	Sard Verbinnen & Co., LLC provides strategic communications advice and services that help clients in managing their position and specific events affecting their reputation, business, and market value. The company also provides services in the areas of corporate positioning that include development of strategies and initiatives based on research, judgment, and thinking for individuals and institutions; and offers communication advisory services to boards and senior management of public and private organizations, as well as small and mid-cap companies. US PR agency for BAT	SoftBank Alibaba Group Didi Chuxing Nikon HNA Group Grab KKR
EUK Consulting (2017)	Active	EUK Westminster and Brussels based consultancy, bespoke public affairs, lobbying and issues-management services, political consultants, politics, british politics, london parliament.	Emergent BioSolutions Inc McCain Foods (GB) Ltd Colgate Palmolive SARL SC Johnson EURAFNE Nicoventures Limited (also owned by BAT) United Technologies Corporation Lonza Limited Full list: http://www.eukconsulting.com/our-clients/
Red Flag (2017)	Active	Red Flag is an international consultancy specialising in strategic communications, government relations, crisis management and regulatory engagement. (listed as lobbyists for BAT in 2016 EU talks regarding implementation of FCTC https://www.politico.eu/article/tobacco-lobbyists-demand-say-in-eu-debate-on-tobacco-lobbying-european-parliament-european-ombudsman-emily-oreilly/	ESTA Anitox EDiMA NuFarm Barclay Chemicals Manufacturing North American Meat Institute Irish Distillers Limited (Pernod Ricard) Anitox Monsanto National Coffee Association of USA