British American Tobacco Malaysia Bhd. · MYX:BAT
British American Tobacco Malaysia Bhd — Q2 2015 Earnings Presentation
22 slides from British American Tobacco Malaysia Bhd's earnings presentation, July 2015
Slide 1: Analyst Briefing Quarter 2, 2015
Analyst Briefing QUARTER 2, 2015 July 2015
Slide 2: Agenda
AGENDA Industry Review: Volumes and Market Share Company Review Q2 2015 Performance Other Highlights
Slide 3: Post GST: weaker market sentiments and negative impact on Q2 performance
Post GST: weaker market sentiments and negative impact on Q2 performance Legal Industry volume under pressure vs. SPLY (Q2: - 17.9% / First Half: - 9.6%) => However, recovery noted by end of Q2 Strong market share momentum despite pressure on consumer affordability (+0.5ppt vs. 2014): Dunhil
Slide 4: Industry Review: Volumes and Market Share
Industry Review Volumes and Market Share
Slide 5: Enhance fear factor among retailers through OPS Outlet V2
Enhance FEAR FACTOR among retailers through OPS Outlet V2 Galvanize the PUBLIC to help REPORT outlets that sell illegal cigs or alcohol Ops Outlet Ops Outlet version 2.0 • Launch by RMC in March 2014 • Launch by RMC on 9th Apr 2015
Slide 6: Ops Outlet & OPS Pacak: National intensive enforcement on illegal cigarettes
Ops Outlet & OPS Pacak : National intensive enforcement on illegal cigarettes Recent statistics from the Operasi Outlet campaign (January to June 2015) No. of outlets raided = 1,485 Source : Customs Putrajaya No. of retailers arrested = 454 No. of retailers jailed & fined : 377 Total illegal
Slide 7: Customs also conduct joint enforcement with Municipal Councils
Customs also conduct joint enforcement - with Municipal Councils - to combat the sales of illegal cigarettes by street peddlers 2 Government Agencies cooperated together to take actions on errant street peddlers at Kuantan and Sandakan NST, 9 Mar 2015 Sinar Harian , 5 Mar 2015
Slide 8: Market review update
Market review update YTD June’15, legal market declined -9.6% vs. SPLY Decline noted in the month of April after the implementation of GST However, recovery seen in the recent month Big-3 IMS (mns) 1H ‘15 vs. SPLY: Monthly Avg. YTD June’14 YTD June’15 Change Industry 1022 924 -9.6% BAT 644 583 -9.5%
Slide 9: BAT is currently on an increasing trend since Jan'15
BAT is currently on an increasing trend since Jan’15. Source: YTD JUN 15 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) -0.7ppt +0.5ppt Share of Market – Malaysia (%)
Slide 10: Company Review
BRITISH AMERICAN TOBACCO MALAYSIA Company Review
Slide 11: Dunhill on an increasing trend post GST implementation
Dunhill on an increasing trend post GST implementation Source: YTD JUN 15 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) -0.5ppt -0.3ppt MPI GPI Jan 2015 Jan – Mar’15: May – June’15: Launch of DH Zest Dunhill core range Capsule range LEP (Flavoured capsule) - LEPS Packs Nationwide
Slide 12: Peter Stuyvesant: outstanding growth, all time high of 5.5% SOM
Peter Stuyvesant: outstanding growth and currently at an all time high of 5.5% SOM Source: YTD JUN 15 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) +1.0pt +1.1pt Produk ini mengandungi lebih 4,000 bahan kimia termasuk tar, nikotina dan karbon monoksida yang membahayakan kesihatan
Slide 13: Pall Mall small gains in Q2 driven by all SKUs
Pall Mall small gains in Q2 driven by all SKUs Source: YTD JUN 15 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) -0.8ppt 0.0ppt June – Sept’14 Mar 2015 Introduction of reloc Launch of Pall Mall XL to Pall Mall SKUs. - Nationwide Produk ini mengandungi lebih 4,000 bahan kimia terma
Slide 14: Q2 2015 Results: Financial Highlights
Q2 2015 Results Financial Highlights OBACCO
Slide 15: Q2 Discrete: Key Metrics
Q2 Discrete: Key Metrics Domestic & DF Volumes (mn sticks) Contract Manuf. volumes (mn sticks) Cigarette Semi Finished 2,777 -17.0% -22.6% 1,827 2,124 1,762 1,174 1,234 Q2 2014 Q2 2015 Q2 2014 Q2 2015 Revenue (RM mn) Profit from Operations (RM mn) 1,226 335 -13.7% -11.3% 1,088 289 Q2 2014 Q2 2015 Q2
Slide 16: H1 YTD: Volume and Revenue
H1 YTD: Volume and Revenue Domestic & DF Volumes (mn sticks) Contract Manuf. Volumes (mn sticks) Cigarette Semi Finished 4,865 -9.0% -14.5% 3,760 4,129 3,759 2,379 2,435 H1 2014 H1 2015 H1 2014 H1 2015 Revenue (RM mn) Net Turnover (RM mn) -0.8% -0.4% 1,305 1,300 2,380 2,362 H1 2014 H1 2015 H1 2014 H
Slide 17: H1 YTD: Key Metrics
H1 YTD: Key Metrics Gross Profit (RM mn) Operating Expenses (RM mn) 836 +3.4% 864 +27.7% 252 197 H1 2014 H1 2015 H1 2014 H1 2015 Profit from Operations (RM mn) Earning per Share (Sen/share) -3.6% -3.1% 640 617 166 161 H1 2014 H1 2015 H1 2014 H1 2015
Slide 18: Dividends: 97.8% payout
2013 2014 2015 RM 2.82 RM 3.09 YTD 97.8% Payout 97.8% Payout 0.78 0.78 0.78 0.78 0.78 0.78 0.75 0.68 0.68 0.68 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 19: Other Highlights
Other Highlights OBACCO
Slide 20: Environmental Responsibility: Introduction of Hybrid vehicles
Environmental Responsibility: Introduction of Hybrid vehicles • In conjunction with World Environment Day, BAT Malaysia announced the introduction of Hybrid vehicles to our fleet. By adding these Hybrid vehicles, we will not just achieve less fossil fuel consumption but it will also go a long way in
Slide 21: Best Candidate Experience 2015 and Best Recruitment Evaluation Technique 2015
Best Candidate Experience 2015 and Best Recruitment Evaluation Technique 2015 • We are pleased to announce that BAT Malaysia has received 2 GOLD awards for both ‘Best Candidate Experience’ and ‘Best Recruitment Evaluation Technique’ at the Asia Recruitment Awards ceremony held on 12th May 2015.
Slide 22: Thank You
TOBACCO THANK YOU
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