British American Tobacco Malaysia Bhd. · MYX:BAT
British American Tobacco Malaysia Bhd — Q4 2011 Earnings Presentation
29 slides from British American Tobacco Malaysia Bhd's earnings presentation, Feb 16, 2012
Slide 1: British American Tobacco (Malaysia) Berhad 4th Quarter 2011 Results
British American Tobacco (Malaysia) Berhad 4th Quarter 2011 Results Analyst Presentation 16 February 2012
Slide 2: Agenda
Agenda Industry Review, Market Share and Volumes BATM’s Activities Quarter 4, 2011 Results Other Highlights Future Prospects
Slide 3: Industry Review, Market Share, Volumes and BATM Activities
INDUSTRY REVIEW, MARKET SHARE, VOLUMES AND BATM ACTIVITIES
Slide 4: BAT Market share
BAT Market share % 2011 2010 63 62.6 62 62.4 2011: 61.1 (FY) 62.0 62.0 61.8 61.7 60.7 2010: 59.8 (FY) 61 61.3 60.4 60.2 60.9 60.2 60.0 59.9 59.9 59.7 60.5 59.8 60 59.6 59.0 59.5 58.9 59 59.0 58.7 58 57 Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Source: Retail Audit (Base: Whites only) BAT grew
Slide 5: BATM recovered share at the expense of other whites
BATM recovered share at the expense of other whites BAT (left axis) Others Jan vs Dec’11 65 30 62.0 62.4 62.6 61.8 62.0 61.7 61.3 60.2 60.5 60.9 +3.9ppt 58.7 59.0 60 25 55 20 50 15 9.5 45 8.7 10 7.7 7.0 6.5 6.1 6.0 5.9 5.5 5.2 4.8 4.7 40 5 -4.8ppt 35 0 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-1
Slide 6: Sub VFM continues to decline post January 2011
Sub VFM continues to decline post January 2011 -0.7ppt -4.8ppt -1.1ppt -1.0 ppt -0.6ppt -0.4ppt -0.3ppt -0.1ppt -0.2ppt -0.4ppt -0.4ppt -0.3ppt -0.1ppt Source: Malaysia Retail Audit (Base: Total Whites)
Slide 7: Illicit Trade
Illicit Trade 37.5 40 37.3 0.1 36.3 36.1 36.3 34.8 35 -1.2pp -0.2pp -1.0pp -1.5pp 30 25.7 20.7 23.9 0.4 21.9 % Illicit 25 22.7 23.2 21.1 +11.8pp 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 (Mar-May) 2011 Wave 2 (Jun - 2011 Wave 3 (Oct-Dec) Aug) Smuggled Kretek
Slide 8: Industry volumes decreased 2.3%
Industry volumes decreased 2.3% Industry volumes (CMTM members) 2010 3,743 3,805 2011 4 3,495 3,434 3,365 3,180 2% 2,888 2,903 3 2% (in bn sticks) 9% 0.5% 2 1 0 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Shipment Volume Variance Variance Q4 2011 Q4 2010 FY2011 FY2010 (in bn sticks) Q4 11 vs Q4 10 FY11 vs FY10 BATM 2.0
Slide 9: BAT Volume Reconciliation – 2010 to 2011
BAT Volume Reconciliation – 2010 to 2011 -3.2% 8747 Shipment Share +1.2ppt Retail audit +1.3ppt Cigarettes (mns) 280 8633 166 2010 Market Size Market Share 2011 Change in Market Size Market Share Gains Market Share Losses All Others Total legal industry declines by 3.2% from consumption decline, whi
Slide 10: BAT & GDB Share
BAT & GDB Share +1.3ppt Source: Malaysia Retail Audit (Base: Total Whites) BAT closed the year with 61.1% market share, up +1.3ppt compared to 2010. The only international player to grow share this year!
Slide 11: Market remains Premium-skewed
Market remains Premium-skewed BAT 2010 BAT 2011 Share of Premium 72.7 Share of Premium 72.2 Share of Value for Money 39.0 Share of Value for Money 42.8 Share of Sub-VFM 0 Share of Sub-VFM 0 Source: Malaysia Retail Audit (Base: Total Whites)
Slide 12: Dunhill
Dunhill Dunhill Global Pack Design with RELOC Jan 2011: Dunhill Menthol BOOST May 2011: Dunhill SWITCH First convertible cigarette in Malaysia Source: Malaysia Retail Audit (Base: Total Whites) Dunhill Family’s continued growth acquired 46.5% SOM in Oct 2011: Dunhill RED campaign December – Dunhill’
Slide 13: BAT VFM share of segment growing
BAT VFM share of segment growing +3.8ppt Source: Malaysia Retail Audit (Base: Total Whites) 2011 stable. Growth vs 2010
Slide 14: Pall Mall
Pall Mall Source: Malaysia Retail Audit (Base: Total Whites) Pall Mall shares stable in 2011 Produk ini mengandungi lebih 4,000 bahan kimia termasuk tar, nikotina dan karbon monoksida yang membahayakan kesihatan.
Slide 15: Addition of Pall Mall Ice further strengthened Pall Mall in VFM Menthol
Addition of Pall Mall Ice further strengthened Pall Mall in VFM Menthol Pall Mall Menthol – SOM (%) 2011 Pall Mall Menthol Pall Mall Ice 2.6 2.5 2.5 2.4 2.4 2.4 2.4 2.4 2.3 2.3 2.3 2.2 2.2 2.2 0.3 0.4 0.4 0.4 0.3 0.3 2.2 0.0 0.3 0.3 0.3 2.0 1.8 1.6 2.2 2.2 2.2 2.1 2.1 2.1 2.1 2.1 2.1 2.0 2.0 2.0 1.4
Slide 16: Peter Stuyvesant
Peter Stuyvesant Source: Malaysia Retail Audit (Base: Total Whites) International Peter Stuyvesant Core Range International Peter Stuyvesant 2011 Edition Produk ini mengandungi lebih 4,000 bahan kimia termasuk tar, nikotina dan karbon monoksida yang membahayakan kesihatan. Peter Stuyvesant remains s
Slide 17: Financial Highlights
BRITISH AMERICAN TOBACCO MALAYSIA FINANCIAL HIGHLIGHTS
Slide 18: Quarter 4, 2011 vs Quarter 4, 2010
Quarter 4, 2011 vs Quarter 4, 2010 Volumes Revenue Net Turnover RM 'm ns M n Stk s RM 'm ns + 0.7% + 2.9% 500 + 4.8% 2, 500 1, 000 987 485 98 0 480 463 2,021 2,035 959 2, 000 96 0 460 94 0 440 1, 500 92 0 420 90 0 400 1, 000 88 0 380 86 0 360 50 0 84 0 340 82 0 320 - 80 0 300 Q4 2010 Q4 2011 Q4 2010
Slide 19: Full Year 2011 vs 2010
Full Year 2011 vs 2010 Volumes Revenue Net Turnover RM 'm ns M n Stk s RM 'm ns - 1.3% +4.1% -0.1% 10 ,000 2,100 4, 200 9, 000 8,747 8,633 4, 150 2,050 4,127 2,019 2,018 8, 000 4, 100 2,000 7, 000 4, 050 1,950 6, 000 5, 000 4, 000 1,900 3,965 4, 000 3, 950 1,850 3, 000 3, 900 1,800 2, 000 1, 000 3,
Slide 20: Productivity Savings
Productivity Savings 51.3 44.8 41.5 38.6 39.8 30.5 23.4 15.4
Slide 21: Other Highlights
BRITISH AMERICAN TOBACCO MALAYSIA OTHER HIGHLIGHTS
Slide 22: Recent CR highlights
Recent CR highlights Launch of Recycling Awareness Programme: ( 25th October) Company-wide communications was launched on cultivating better recycling habits and also, additional paper recycling bins were installed in pantries
Slide 23: Recent CR highlights (cont'd)
Recent CR highlights (cont’d) Beach Cleanup – Workday EVP (11th November) 22 volunteers helped to cleanup the Bagan Lalang Beach, Sepang in the workday EVP for 2011 BATM Foundation Scholarship Awards Ceremony (18th November) 28 students were awarded with a total of RM328,868 for the full duration of
Slide 24: Awards and Recognition
Awards and Recognition EHS Excellence Awards 2011 Recognition: Special Judges Award The Asset Corporate Awards Recognition: Gold Award for Environmental Responsibility and Investor Relations
Slide 25: Awards and Recognition (cont'd)
Awards and Recognition (cont’d) Malaysian Corporate Governance Index 2011 Recognition: Distinction Award and the Industry Excellence Award in Consumer Products category National Annual Corporate Report Awards 2011 Recognition: Industry Excellence Award in Consumer Products Category
Slide 26: Awards and Recognition (cont'd)
Awards and Recognition (cont’d) CSR Asia – Asian Sustainability Rating 2011 Ranking: • BAT Malaysia ranked 6th best company in Malaysia for sustainability disclosure • BAT Malaysia’s ranking speaks volumes of company’s commitment towards sustainability (as we did not publish a standalone Sustainabil
Slide 27: Future Prospects
BRITISH AMERICAN TOBACCO MALAYSIA FUTURE PROSPECTS
Slide 28: Future Prospects
Future Prospects BAT grew market share by 1.3ppt, but insufficient to counter consumption decline 2011 profit from operations flat, commendable given lower 14’s margin and one off impact of changes to accounting policy and distribution model Group relatively optimistic on 2012 outlook, on strong sha
Slide 29: Thank You
Thank You BRITISH AMERICAN TOBACCO MALAYSIA
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