British American Tobacco Malaysia Bhd. · MYX:BAT
British American Tobacco Malaysia Bhd — Q2 2021 Earnings Presentation
17 slides from British American Tobacco Malaysia Bhd's earnings presentation, Jul 23, 2021
Slide 1: Quarter 2, 2021 Performance
QUARTER 2, 2021 PERFORMANCE 23rd July 2021
Slide 2: Agenda
Agenda 1 Q2 Business Review and Financial Performance 2 Other Business Update
Slide 3: Business performance
Business performance Q2 Business Review and Financial Performance
Slide 4: 2021 Key priorities
2021 Key priorities Key Enablers: 1 Combustible Value Growth Sustainability 2 Step-Change in New Categories Accelerating Tomorrow’s Leaders 3 A Simpler & Smarter Company
Slide 5: H1 highlights
H1 highlights +12% vs H1’20 +14% vs H1’20 57.9%May’21 Legal domestic BAT domestic volume Illegal FMC industry volume -6.2ppt vs Dec’20 +1.5ppt Vs H1’20 +13% vs H1’20 +25%vs H1’20 BAT Share of Market Revenue Profit from operations Budget 2021 measures to tackle Illicit driving H1 volume +14% resultin
Slide 6: Legal industry volume recovery driven by positive anti-illicit measures
Legal industry volume recovery driven by positive anti- illicit measures Average Monthly Volume (mns) 733 669 Legal 586 domestic 567 522 533 industry 505 volume +12% 362 BAT FMCO domestic volume +14% 241 275 222 250 332 294 379 172 H1'20 H1'21 Jan'21 Feb'21 Mar'21 Apr'21 May'21 Jun'21 Source: CMTM B
Slide 7: Share growth momentum continues in 2021
Share growth momentum continues in 2021 BAT Retail Audit Share of Market (%) H1’21 vs SPLY 52.4 51.7 51.4 50.6 2018 2019 2020 H1'21 Source: IPSOS Retail Audit Malaysia Strong portfolio performance drives growth
Slide 8: Q2 Financial performance
Q2 Financial performance +5% +5% vs Q1’21 +23% +13%vs Q1’21 vs Q1’21 vs Q1’21 Total BAT volume Revenue Profit from operations Earnings per share (incl. Duty Free) 6th consecutive quarter on quarter growth
Slide 9: H1 Financial performance
H1 Financial performance +10% +13% vs H1’20 +25% +28% vs H1’20 vs H1’20 vs H1’20 Total BAT volume Revenue Profit from operations Earnings per share (incl. Duty Free) Strong performance across all key metrics
Slide 10: H1 positive results driven by strong volume growth
H1 positive results driven by strong volume growth Total Volume Revenue Profit from operations mns RM’mn RM’mn +10% +13% +25% vs SPLY vs SPLY vs SPLY Continued positive signs of recovery from measures against the tobacco black market
Slide 11: Optimising cost and securing inventories coverage
Optimising cost and securing inventories coverage Operating Expenses Inventories RM’mn RM’mn 361 109 99 217 H1'20 H1'21 Q2'20 Q2'21 Overhead savings partially offset by additional Holding 5 weeks of additional inventories to manage investment behind strengthening our portfolio uncertainties in suppl
Slide 12: Dividend payout for Q2 2021
Dividend payout for Q2 2021 Earnings per share 25.1 sen +31% vs Q2’20 Dividend 24.0 sen +33% vs Q2’20 Payout ratio 96% Payment scheduled for 20th August 2021
Slide 13: 2021 Outlook: Other Business Update
2021 Outlook Other Business Update
Slide 14: Tobacco black market remains a significant threat
Tobacco black market remains a significant threat Budget 2021 measures step in the However, tobacco black market Sustained momentum required right direction syndicates are shifting focus • Hold firm to Budget 2021 measures • Fiscal stability maintained • Transhipment restrictions • Expand enforcemen
Slide 15: BAT supports growing calls for nicotine vapour regulation
BAT supports growing calls for nicotine vapour regulation Provide today's adult smokers with a choice of reduced-risk products - In line with our A Better Tomorrow™ purpose Ensure Malaysia’s 1.1 million vapers have access to products that comply with safety & quality standards Generate economic acti
Slide 16: BAT Malaysia Summary
BAT Malaysia Summary H1 positive results driven by +14% increase in volume BAT brands growing share across all price segments Encouraging Budget 2021 measures to tackle the tobacco black market. Industry sustainability requires supply and demand measures Progressive regulations on vaping products ne
Slide 17: Thank you
2021 Outlook THANK YOU
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