British American Tobacco Malaysia Bhd. · MYX:BAT
British American Tobacco Malaysia Bhd — Q1 2012 Earnings Presentation
23 slides from British American Tobacco Malaysia Bhd's earnings presentation, Apr 23, 2012
Slide 1: British American Tobacco (Malaysia) Berhad 1st Quarter 2012 Results
British American Tobacco (Malaysia) Berhad 1st Quarter 2012 Results Analyst Presentation 23 April 2012
Slide 2: Agenda
Agenda Industry Review, Market Share and Volumes BATM Review Competitor Review Quarter 1, 2012 Results Other Highlights Future Prospects
Slide 3: Industry Review, Market Share, Volumes and BATM Review
INDUSTRY REVIEW, MARKET SHARE, VOLUMES AND BATM REVIEW
Slide 4: Industry Volumes
Industry Volumes Source: Confederation of Malaysian Tobacco Manufacturers (CMTM) 5 Industry volumes (CMTM members) 2011 4,039 4 3,581 3,600 2012 3,479 3,052 3 (in bn sticks) 2 1 0 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Shipment Volume Variance Volume Variance Q1 2012 Q1 2011 (in bn sticks) Q1 12 vs Q1 11 Q1 12 vs
Slide 5: Market remains Premium skewed
J&J - Oil 3 Period Ended MAR12 | Hide NA's | Colour % Chg | Share of White Market remains Premium skewed Source: Malaysia Retail Audit (Base: White Only) Source: Retail Index (Malaysia) BAT YTD 2012 BAT SPLY 2011 Share of Premium 72.2 Share of Premium 72.0 Share of Value for Money 42.2 Share of Valu
Slide 6: Illicit Trade
Illicit Trade Source: Illicit Cigarette Study, 2011 37.5 37.3 36.3 36.1 36.3 40 34.8 -1.2ppt 0.1 -1.0ppt -0.2ppt -1.5ppt 35 30 25.7 23.9 +11.8ppt 0.4 20.7 25 21.9 22.7 23.2 % Illicit 21.1 20 13.4 15 16.7 10 14.4 13.7 13.4 13.4 13.1 11.9 5 2008 2009 2010 2011 2011 Wave 1 2011 Wave 2 2011 Wave 3 (Mar-
Slide 7: BAT Share of Market
BAT Share of Market Source: Malaysia Retail Audit (Base: White Only) % 2012: 62.5 % (Q1) 2011: 61.1 (FY) 63.0 62.6 62.4 62.7 62.0 62.0 62.0 62.3 62.4 61.8 61.7 61.4 61.0 2011: 62.3 % (Q4) 61.0 2011: 59.3 % (Q1) 60.6 60.0 60.2 59.0 59.0 58.7 2012 2011 58.0 Jan Feb Mar Apr May Jun July Aug Sep Oct Nov
Slide 8: BAT & GDB Share
BAT & GDB Share Source: Malaysia Retail Audit (Base: White Only) +1.4ppt BATM laysia Retail Audit (Base: Total Whites, YTD MAR12) BAT YTD March 2012 registered 62.5% market share, up +1.4ppt vs. FY2011
Slide 9: Dunhill
J&J - Oil 3 Period Ended MAR12 | Hide NA's | Colour % Chg | Share of White Dunhill Source: Malaysia Retail Audit (Base: White Only) +1.8ppt Jan 2011: Dunhill Menthol BOOST May 2011: Dunhill SWITCH (First convertible cigarette in Malaysia) Oct 2011: Dunhill RED equity building campaign In the latest
Slide 10: Dunhill Lights breaching the 3.0% mark
Dunhill Lights breaching the 3.0% mark! Source: Malaysia Retail Audit (Base: White Only) SOM: Premium Lights Brands 3.0 3.0 3.1 2.8 2.9 2.9 2.6 2.7 Dunhill Lights Q1 2011 Q2 2011 Q3 2011 Q4 2011 Jan-12 Feb-12 Mar-12 Dunhill Lts *Mild Seven SOM includes Original variant DH Lights continue to build on
Slide 11: Produk ini mengandungi lebih 4,000 bahan kimia termasuk tar, nikotina dan karbon monoksida yang
• • Produk ini mengandungi lebih 4,000 bahan kimia termasuk tar, nikotina dan karbon monoksida yang membahayakan kesihatan.
Slide 12: Pall Mall
J&J - Oil 3 Period Ended MAR12 | Hide NA's | Colour % Chg | Share of White Pall Mall Source: Malaysia Retail Audit (Base: White Only) -0.3ppt Pall Mall Menthol : Share of Market (%) - Malaysia Pall Mall Family of SKUs Feb 2012: Launch of Pall Mall Mint Source: Retail Index (Malaysia) Pall Mall’s per
Slide 13: Pall Mall Mint registering 0.2% SOM post 2nd month of launch
Pall Mall Mint registering 0.2% SOM post 2nd month of launch Source: Malaysia Retail Audit (Base: White Only) J&J - Oil 3 Period Ended MAR12 | Hide NA's | Colour % Chg | Share of White Pall Mall Menthol Range Pall Mall Menthol : Share of Market (%) - Malaysia PALL MALL MINT Source: Retail Index (Mal
Slide 14: Peter Stuyvesant
Peter Stuyvesant J&J - Oil 3 Period Ended MAR12 | Hide NA's | Colour % Chg | Share of White Source: Malaysia Retail Audit (Base: White Only) Peter Stuyvesant Family of SKUs May 2011: July 2011: Limited Edition Tin Packaging Limited Edition Pack Source: Retail Index (Malaysia) Peter Stuyvesant remain
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 16: Quarter 1, 2012 vs Quarter 1, 2011
Quarter 1, 2012 vs Quarter 1, 2011 EPS increase higher than revenue due to savings from DX consolidation, deferment in merchandising and marketing spend and proactive cost management
Slide 17: Q1 Dividend 65 sen per share
Q1 Dividend 65 sen per share 2011: 98% Payout (110% inc. Special) 2012 Q1 : 95% Payout 0.30 0.66 0.65 0.60 0.60 0.60 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12
Slide 18: Productivity Savings
Productivity Savings 60 51.3 50 44.8 2.8 41.5 39.8 1.6 8.6 38.6 40 6.7 4.5 2.7 3.3 30.5 RM million 3.9 8.2 30 23.4 12.9 13 15.4 3.4 20 39.9 36.5 1.5 32.6 28.8 4.4 4.0 16.6 23.0 8.1 10 11.6 3.4 3.4 2.3 0.7 3.9 0 0.9 2005 2006 2007 2008 2009 2010 2011 Q1, 2012 FY 2012 Supply Chain Indirects Overheads
Slide 19: Other Highlights
OTHER HIGHLIGHTS
Slide 20: Announcement by the Minister of Health
Announcement by the Minister of Health Ministry of Health planning to reduce emission levels No fixed reduction target – plan still in discussion The Star, pg.16 19 March 2012 “ As a responsible company, British American Tobacco Malaysia supports sensible regulations and will comply with such re
Slide 21: Future Prospects
FUTURE PROSPECTS
Slide 22: Future Prospects
Future Prospects The unprecedented zero excise in 2011 coupled with robust enforcement has allowed the legal market to stabilise. BAT has continued to grow market share, 0.2ppt and 3.2ppt V’s Last Quarter and SPLY respectively. 2012 profit from operations expected to grow due to better domesti
Slide 23: Thank You
Thank You BRITISH AMERICAN TOBACCO MALAYSIA
British American Tobacco (Malaysia) Berhad — Q1 2012 Earnings Presentation on 6ix