NEXT GENERATION PRODUCTS

“Inspiring Products. Driving Change”

Marina TraniHead of R&D NGP , BAT

2

Committed to Vapour

• Vype is present in 10 markets globally

• Market leader in UK & Poland

• Vype is the leading vapor brand in UK pharmacies

• Vype is one of the fastest growing brands in UK retail (now at 10.8%)

• Vype Pebble is now our biggest selling starter kit online

Ready to Win in THP

WHAT CONSUMERS WANT FROM THP INNOVATION

Simple & Stylish design

Less harmful

No compromise on taste

Don’t want to carry many things

Easy to use

Don’t want to disturb others

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Unique &

Different Tough & Simple

Satisfying tobacco taste

Very stylish & metallic body is

cool

Almost no smell & better than cigarette!

Easy to use

EXCELLENT

RESPONSE

FROM JAPAN

Device with chemical formula

SMART EASY PLEASANT CONSIDERATE

NEXT GENERATION HEATING TOBACCO

ONE BODY FULL DAY

ENJOYMENT

NEW HEATING

SYSTEM

sm

art

ONE TOUCH EASY

TO CLEANEASY

TO CARRY

easy

CAREFULLY SELECTEDTOBACCO LEAF

COMPLETE

RANGE

CONSECUTIVE

USAGE

ple

as

an

t

SCIENCE

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Over 60 Years Heritage In Tobacco Science Has Led To Glo™: A Product With Controlled Tobacco Heating

Cigarettes burn tobacco at around 900˚Cb

glo™ heats tobacco up to a maximum of 240˚Cc

glo™ produces a much simpler aerosol containing

less compounds than cigarettes

cigarette

gloTM

1000

900

800

700

600

500

400

300

200

100

0

Tem

p (

ºC)

COMBUSTION

PYROLYSIS

DISTILLATION

Smoke

toxicants

cigarette

operating

window

glo

operating

window

Humectants

nicotine

flavours water

Tobacco

toxicants

aThese qualities do not necessarily mean this product produces less adverse health effects than other tobacco products; bRR Baker, (2006)

Progress in Energy and Combustion Science, 32 (4), 373; cMethod taken from: Forster et al, (2015) Chemistry Central Journal, 9, 20

glo™ DELIVERS A DIFFERENT AEROSOL TO CIGARETTE SMOKE*

-Priority lists of toxicants exist from different public health and regulatory bodies -Using lab based machines, we compared gloTM

emissions against a scientific reference cigarette, for the priority toxicants proposed by:• WHO TobReg (9 chemicals) [2]• Food & Drug Administration (shortened list of

18 chemicals) [3]• Health Canada (44 chemicals) [4]• Food & Drug Administration (list of >90 Harmful

and Potentially Harmful constituents) [3]

TARGETTED EMISSIONS*

gloTM emissions relevant to each of the regulatory lists were reduced by around 96–97%, relative to a scientific reference cigarette 3R4F [5]

*Measured using the Health Canada Intense machine puffing regime. These qualities do not necessarily mean this product produces less adverse health effects than other tobacco products

• Cigarettes can introduce toxicants into the environment through two processes:

o Smouldering between puffs (side stream smoke)

o Smokers exhaling smoke

• gloTM does not smoulder (there is no tobacco vapour produced between puffs)

• gloTM has substantially reduced levels of toxicants relative to cigarettes, so the potential of users exhaling toxicants is lower than with smoking cigarettes

• We conducted a study with consumers using gloTM and cigarettes in a controlled environment, to test the environmental emissions from each product

ASSESSMENT OF INDOOR AIR QUALITY

*These qualities do not necessarily mean this product produces less adverse health effects than other tobacco products

1716-Jun-17

• Comparative assessment of particle

concentration in cigarette smoke

compared to gloTM heated tobacco

vapour when used by consumers

under controlled conditions.

• This is a comparison between the

smoke from combusted tobacco in a

commercially available cigarette

(approximately 7 mg tar), and the

vapour from heated tobacco in ‘gloTM’

tested under controlled conditions.

• The environmental emissions from

gloTM contain around 95% less

particles than cigarette smoke [6]

ASSESSMENT OF INDOOR AIR QUALITY

*These qualities do not necessarily mean this product produces less adverse health effects than other tobacco products

1816-Jun-17

*Attribute tested: ‘Cigarette smoke odour intensity’

Using gloTM reduces

odour on hands, hair and

fabric in comparison to

smoking

ASSESSMENT OF ODOUR

In a number of laboratory tests, gloTM

has no or substantially reduced levels

of toxicity in comparison to a scientific

reference cigarette, 3R4F

TOXICOLOGICAL ASSESSMENT OF GLOTM (classical endpoints)

*Measured using the Health Canada Intense machine puffing regime. These qualities do not necessarily mean this product produces less adverse health effects than other tobacco products

Cigarette – disease relevant gene responses gloTM – disease relevant gene responses

aMethods adapted from Banerjee et al (2017) Appl in vitro Toxicol. 3(1) 84-98; doi:10.1089/aivt.2016.0024; bglo and a scientific reference cigarette (3R4F) puffed on machines using the Health Canada Intense (HCI) regime: The contents of glo vapour differ significantly from cigarette smoke, however, these qualities and the above responses do not necessarily mean this product produces less adverse health effects than other tobacco products; cIngenuity Pathway Analysis (IPA) has broadly been adopted by the life science research community and is widely cited for the analysis, integration, and interpretation of data derived from ‘omics experiments.

In lab based tests, gloTM promotes substantially less disease relevant gene responses in comparison to a cigarettea,b

• 3-D cellular system (MucilairTM) exposed to gloTM heated tobacco vapour and cigarette smoke

• Ingenuity Pathway Analysisc of >22,000 gene responses grouped into disease relevant categories

TOXICOLOGICAL ASSESSMENT OF GLOTM (systems science)

EXPOSURE STUDIES

• We are conducting a number of clinical and behavioural studies across the globe on gloTM to assess:

-Consumer usage and puffing behaviour-Nicotine uptake-Exposure to toxicants

• Clinical studies will evaluate exposure to toxicants for adults who:-Continue smoking-Switch to gloTM

-Stop smoking

• We have recently completed the clinical phase of a short-term exposure study on gloTM in Japan and early data indicate good reductions in Biomarkers of Exposure for smokers who switched to gloTM relative to those who continued smoking

• We are conducting long term clinical studies on gloTM to assess: o if any reduction in exposure to toxicants is sustained over a significant period of timeo if the health related outcomes associated with smoking are reduced when smokers switch

to gloTM

• We are conducting long term monitoring studies on gloTM in Japan to assess:o if we can reduce the risks associated with smoking o if smokers who switch to gloTM realise an improvement in their ‘quality of life’[10]

RISK STUDIES│LONG-TERM MONITORING

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Device - Safety & Quality at Our Core

Legally conforms with all CE marking requirements

Independent safety testing carried out by certified body

Compliant with EMC Directive for control

of immunity and emissions

Meets the Restriction of

Hazardous Substances (RoHS)

Directive

THANK YOU