British American Tobacco Malaysia Bhd. · MYX:BAT
British American Tobacco Malaysia Bhd — H2 2023 Earnings Presentation
16 slides from British American Tobacco Malaysia Bhd's earnings presentation, Feb 8, 2024
Slide 1: H2 2023 Financial & Business Updates
H2 2023 Financial & Business Updates Presented by: Anthony Yong (Finance Director) 8th February 2024
Slide 2: Market Insights
Market Insights Presented by: Anthony Yong (Finance Director) 8th February 2024
Slide 3: Market Insights - Illicit vs Legal trends
Market Insights - Illicit vs Legal trends Combustible Value Growth Illicit Incidence Monthly Legal Industry Volume (mns) FY’23 FY’23 63.8 55.6% 588mns -1ppt vs -1ppt vs FY’22 FY’22 594 599 587 610 535 568 556 57.7 56.6 56.2 55.3 55.1 55.3 2020 2021 2022 Q1'23 Q2'23 Q3'23 Q4'23 2020 2021 2022 Q1'23 Q
Slide 4: Regulation Updates
Regulation Updates The Control of Smoking Product for Public Health 2023 Act (“Act”) has been passed in Parliament in late 2023 Commencement Date of Act and Introduction of Regulations 30 Nov 2023 14 Dec 2023 2 Feb 2024 TBC Passed in Dewan Passed in Dewan Gazetted** Rakyat* Negara* (Notification of
Slide 5: Business Performance
Business Performance Presented by: Anthony Yong (Finance Director) 8th February 2024
Slide 6: Q4 '23 Business Performance – Highlights
Q4 ‘23 Business Performance – Highlights 55.3% +4.3% +2.0% +0.3% vs. Q3 ‘23 +0.2ppt vs Q3 ‘23 vs. Q3 ‘23 vs. Q3 ‘23 Prem -0.3% | VFM +0.9% Illegal Legal Domestic Total Share of Incidence Volume Volume Market Industry BAT Source: Illegal Cigarettes Study , Study on the Malaysian Vaping Industry, CMTM
Slide 7: FY '23 Business Performance – Highlights
FY ‘23 Business Performance – Highlights 55.6% -1.0% -12.9% -0.5% vs. FY ’22 -1.0ppt vs FY ‘22 vs. FY ’22 vs. FY ’22 Prem -0.9% | VFM +0.5% Illegal Legal Domestic Total Share of Incidence Volume Volume Market Industry BAT Source: Illegal Cigarettes Study , Study on the Malaysian Vaping Industry, CMT
Slide 8: Q4 '23 – BAT FMC Share Performance
Combustible Q4 ’23 – BAT FMC Share Performance Value Growth BAT Retail Audit Share of Market (%) FY’23 51.1% Q4‘’23 LE vs Q3 ’23 52.4 -0.5ppt vs FY’22 51.7 51.6 +0.3ppt 51.5 51.0 51.2 50.9 50.6 -0.4ppt +0.1ppt 2019 2020 2021 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 LE Dunhill Peter Stuyvesant Luckies Pr
Slide 9: Vapour Market Context
Vapour Market Context Step-change in New Categories Sizeable Consumer & Revenue Pool MoDi leading format and growing 23% Open System 67% 30% 1.8mn RM2.8b Closed System 33% 47% MoDi Vape Users Revenue 2020 2024 LE LE ‘24 Highly fragmented market Big Puff, High Nic & Fruits preferred 100+ Brands 60% 8
Slide 10: Vuse Launch Approach
Vuse Launch Approach Step-change in New Categories MODI FOCUSED PORTFOLIO PHASED LAUNCH APPROACH INITIAL LAUNCH LAUNCH OCTOBER AUGUST Key Urban National 3000 – 8 FLAVOURS Cities Expansion 1500 – 6 FLAVOURS 5000 – 5 FLAVOURS AUGUST OCTOBER NOVEMBER CDF: ESTABLISHING STRONG TOP FUNNEL FULL 360 IMMERSI
Slide 11: Beyond Benih
Beyond Benih Inspired & Sustainable Organisation From 2 pilots To multiple sites Transforming A collaborative Readiness to community approach to ensure expand investment sustainability
Slide 12: Financial Performance
Financial Performance Presented by: Anthony Yong (Finance Director) 8th February 2024
Slide 13: Q4 '23 vs Q3 '23 Financial Performance
Q4 ‘23 vs Q3 ‘23 Financial Performance +2% +5% -25% vs Q3 ‘23 vs Q3 ‘23 vs Q3 ‘23 Volume Revenue Operating Profit Decline in Operating Profit relates to Investment in New Categories
Slide 14: FY '23 Financial Performance – Highlights
FY ’23 Financial Performance – Highlights -13% -11% -31% Vs FY ‘22 vs FY ‘22 vs FY ‘22 Volume Revenue Operating Profit Decline in Operating Profit due to FMC weakness and Investment in New Categories
Slide 15: Q4'23 Dividend Proposed
Q4’23 Dividend Proposed Q4 ‘23 Q4 ‘22 Var Total BAT Volume 15 sen per ordinary share (bn sticks) 0.84 1.06 -21% RM42.8mil, payable on 5 Mar 2024 Revenue (RM mn) 636 771 -17% Dividend Yield 7%* Operating Profit (RM mn) 64 100 -36% Profit after tax Share Price (RM) (RM mn) 47 62 -23% 10.86 Earnings pe
Slide 16: Summary
Summary Illicit incidence recorded downward trend for 3 consecutive years FMC Q4 SOM performance improvement driven by Luckies Vuse launched in 2023, multiple formats, encouraging results Smoking regulations expected in 2024 Continue to invest and grow Vuse
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