REG - British Amer.Tobacco - BAT announces Tadeu Marroco as Chief Executive

British American TobaccoAnnouncement

15/05/2023 07:00

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RNS Number : 3409Z  British American Tobacco PLC  15 May 2023

This announcement contains inside information

British American Tobacco p.l.c. (the "Company" or "BAT")

BAT announces Tadeu Marroco as Chief Executive

15 May 2023

The Board announces the appointment of Tadeu Marroco as Chief Executive of BAT
plc to succeed Jack Bowles who is stepping down from the Board of Directors
with effect from 15 May.

Tadeu joined BAT in 1992 and was appointed to the BAT plc Board in 2019 as
Group Finance Director. He has also served on the BAT Management Board since
2014, with previous roles including Regional Director for Europe and North
Africa, and Group Transformation Director. A comprehensive search for a new
Group Finance Director will now commence. Javed Iqbal, who has had an
extensive finance career in the Group, and is currently Director, Digital and
Information, takes on the role of interim Group Finance Director until a
permanent successor has been appointed.

Luc Jobin, Chair, said:

"Since our A Better Tomorrow strategy was articulated in 2019, we have
achieved clear momentum in our New Categories business, have established
leadership in key markets and expect to deliver New Categories profitability
earlier than originally planned. During this time we have also continued to
deliver solid financial results and have returned over £20bn to our
shareholders. On behalf of the Board I would like to thank Jack for his
significant contribution as Chief Executive during this important period.

"To fully deliver on our transformation in a fast-changing environment we must
continue to evolve as a high performing and agile consumer goods company. In
considering succession, the Board recognised Tadeu's outstanding track record
of developing teams that deliver on our transformation alongside a consistent
focus on strong execution and financial performance. We are confident that
under his leadership we will further strengthen our relationships with key
stakeholders and continue to build A Better Tomorrow and deliver long-term
sustainable value for our shareholders."

Tadeu Marroco said:

"I am honoured to be appointed as Chief Executive of BAT. I wish to thank Jack
who has been instrumental in establishing our A Better Tomorrow strategy.
Having been at the centre of the formulation of this strategy, I am convinced
that this is the right strategic path for BAT. In this dynamic environment, I
remain firmly committed to focusing on results delivery through executional
excellence.

"Throughout my 30-year career with this great company, inclusivity and
collaboration have always been at the heart of my leadership approach. My
commitment as the new Chief Executive will be to nurture the passion in BAT
for our people, our consumers and our brands. My Management Team and I will
continue to build an increasingly agile and progressive BAT."

Jack Bowles said:

"It has been my privilege to lead BAT since 2019. In the last four years we
have set out to transform the business towards A Better Tomorrow through a
focus on growth of New Category consumer brands, which account for almost £3
billion of revenue. It is now the time for a change of leadership to take the
business to the next level. As I leave, I thank all my colleagues and the
Board for their support and dedication to this strategy and to the
transformation of the business which we achieved. After 20 years in the
company I look forward to my next steps. I wish my successor Tadeu, who has
been our Group Finance Director for four years, and the great team at BAT, all
the success to continue the journey. Given the quality of BAT's talent
pipeline, I am confident that BAT will continue to be successful."

The person responsible for making this announcement on behalf of the Company
is P McCrory, Company Secretary.

Supplementary Information - Remuneration

Tadeu Marroco will receive a remuneration package which will comprise a
basic salary, variable incentive arrangements and benefits which are fully in
line with the Company's current Directors' Remuneration Policy. The key
elements of the package are as follows:

·      He will receive an annual base salary of £1,343,700.

·      He will receive a pension allowance of 15% of annual base salary
in line with the contribution level for the wider UK workforce, and other
benefits in line with relevant existing policies.

·      He will be eligible to participate in the Company's existing
short-term and long-term incentive schemes in line with and subject to
deferral in line with the Directors' Remuneration Policy.

Malus and clawback are applicable to the variable remuneration arrangements.

His share ownership requirement will be in line with the Company's existing
policy, requiring that he build up ownership of a shareholding that is equal
to 500% of salary. This is subject to a formal post-employment shareholding
requirement for two years after departure from the Company.

Further detail will be set out in the Directors Remuneration Report
within 2023 Annual Report and Form 20-F.

In accordance with section 430(2B) of the Companies Act 2006, information in
respect of Jack Bowles departure from the Board will be available on bat.com
in due course and will remain available until the Company's Directors'
Remuneration Report in the Annual Report and Form 20-F for the year ended 31
December 2023 is made available.

All remuneration arrangements are consistent with the terms of the Directors'
Remuneration Policy approved by shareholders at the AGM in April 2022.

 

ENDS
Enquiries

Media Centre

+44 (0) 20 7845 2888 (24 hours) | @BATplc (https://twitter.com/BATplc)

Investor Relations

Victoria Buxton: +44 (0)20 7845 2012

John Harney: +44 (0)20 7845 1263

About BAT

BAT is a leading, multi-category consumer goods business with a purpose to
build A Better Tomorrow™ by reducing the health impact of its business
through offering a greater choice of enjoyable and less risky products for
adult consumers.

The company continues to be clear that combustible cigarettes pose serious
health risks, and the only way to avoid these risks is not to start or to
quit. BAT encourages those who would otherwise continue to smoke to switch
completely to scientifically-substantiated, reduced-risk alternatives*†. In
order to deliver this, BAT is transforming into a truly consumer-centric
multi-category consumer products business.

BAT's ambition is to have 50 million consumers of its non-combustible products
by 2030 and to generate £5billion of New Categories revenue by 2024. BAT has
set stretching ESG targets including achieving carbon neutrality for Scopes 1
& 2 by 2030 and eliminating unnecessary single-use plastic and making all
plastic packaging reusable, recyclable or compostable by 2025.

BAT employs over 50,000 people. The BAT Group generated revenue of £27.65
billion in 2022 and profit from operations of £10.5 billion.

The company's Strategic Portfolio is made up of its global cigarette brands
and a growing range of reduced-risk*† New Category tobacco and nicotine
products and traditional non-combustible tobacco products. These include
vapour, tobacco heating products, modern oral products including tobacco-free
nicotine pouches, as well as traditional oral products such as snus and moist
snuff. In 2022, we had 22.5 million consumers of our non-combustible products,
a rise of 4.2 million on full year 2021.

* Based on the weight of evidence and assuming a complete switch from
cigarette smoking. These products are not risk free and are addictive.

† Our vapour product Vuse (including Alto, Solo, Ciro and Vibe), and
certain products, including Velo, Grizzly, Kodiak, and Camel Snus, which are
sold in the U.S., are subject to FDA regulation and no reduced-risk claims
will be made as to these products without agency clearance.

 

Forward-looking statements

This release contains certain forward-looking statements, including
"forward-looking" statements made within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. These statements are often, but not
always, made through the use of words or phrases such as "believe,"
"anticipate," "could," "may," "would," "should," "intend," "plan,"
"potential," "predict," "will," "expect," "estimate," "project," "positioned,"
"strategy," "outlook", "target" and similar expressions. These include
statements regarding our customer target ambition, New Categories revenue
targets and our ESG targets.

All such forward-looking statements involve estimates and assumptions that are
subject to risks, uncertainties and other factors. It is believed that the
expectations reflected in this release are reasonable but they may be affected
by a wide range of variables that could cause actual results to differ
materially from those currently anticipated. A review of the reasons why
actual results and developments may differ materially from the expectations
disclosed or implied within forward-looking statements can be found by
referring to the information contained under the headings "Cautionary
Statement" and "Group Principal Risks " in the 2021 Annual Report and Form
20-F of British American Tobacco p.l.c. (BAT).

Additional information concerning these and other factors can be found in
BAT's filings with the U.S. Securities and Exchange Commission ("SEC"),
including the Annual Report on Form 20-F and Current Reports on Form 6-K,
which may be obtained free of charge at the SEC's website, http://www.sec.gov
and BAT's Annual Reports, which may be obtained free of charge from the BAT
website www.bat.com (http://www.bat.com/) .

Past performance is no guide to future performance and persons needing advice
should consult an independent financial adviser. The forward-looking
statements reflect knowledge and information available at the date of
preparation of this release and BAT undertakes no obligation to update or
revise these forward-looking statements, whether as a result of new
information, future events or otherwise. Readers are cautioned not to place
undue reliance on such forward-looking statements.

 

 

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