British American Tobacco Malaysia Bhd. · MYX:BAT
British American Tobacco Malaysia Bhd — Q3 2015 Earnings Presentation
23 slides from British American Tobacco Malaysia Bhd's earnings presentation, October 2015
Slide 1: Analyst Briefing Quarter 3, 2015
Analyst Briefing QUARTER 3, 2015 October 2015
Slide 2: Agenda
AGENDA Industry Review Company Review Q3 2015 Performance Other Highlights
Slide 3: Weak market sentiments continue into Q3
Weak market sentiments continue into Q3 Legal industry volumes under pressure: decline of 10.0% Aug. YTD vs. same period of last year Illicit trade: illegal cigarettes demand is still high at 33.7% as a result of weaker customer sentiment post GST introduction Strong Group’s Market Share mom
Slide 4: Industry Review
BRITISH AMERICAN TOBACCO MALAYSIA Industry Review
Slide 5: YTD Aug'15, legal market declined -10.0% vs. SPLY
YTD Aug’15, legal market declined -10.0% vs. SPLY Volume softening due to prolonged GST impact => Affordability remains a concern under current environment Big-3 IMS (mns) YTD Aug’15 vs. SPLY: Monthly Avg. YTD Aug’14 YTD Aug’15 Change Industry 1025 923 -10.0% BAT 645 581 -9.9% Source : In-Market Sal
Slide 6: Weaker consumer sentiment resulted in illegal cigarettes incidence still high
Weaker consumer sentiment post GST introduction resulted in illegal cigarettes incidence being still high despite robust enforcement actions
Slide 7: Customs continues robust enforcement at retail point in H2 2015
Customs continues with its robust enforcement activities at retail point in H2 2015 ENFORCEMENT DETERRENT @ Retail Point PENALTIES
Slide 8: Robust enforcement actions at smuggling points
And also with robust enforcement actions at smuggling points ENFORCEMENT REWARDS FOR @ Smuggling Point INFORMANT
Slide 9: Company Review
BRITISH AMERICAN TOBACCO MALAYSIA Company Review
Slide 10: BATM Share of Market
BATM Share of Market Historical market share record in August 2015 Source: YTD AUG 15 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) -0.7ppt +0.8ppt Share of Market – Malaysia (%)
Slide 11: Dunhill on an increasing trend post GST implementation
Dunhill on an increasing trend post GST implementation Source: YTD AUG 15 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) -0.5ppt -0.1ppt MPI GPI PI Jan 2015 Jan – Mar’15: May – June’15: Aug 2015 Launch of DH Zest (Flavoured Dunhill core range LEPS Capsule range LEP Packs Launch of
Slide 12: Peter Stuyvesant: continues strong momentum, reached 5.7% SOM
Peter Stuyvesant: continues strong momentum and reached 5.7% SOM Source: YTD AUG 15 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) +1.2pt +1.1pt
Slide 13: Pall Mall stable share and positive performance vs. FY2014
Pall Mall over 5 months of stable share and recording positive performance vs. FY 2014 Source: YTD AUG 15 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) -0.8ppt +0.1ppt June – Sept’14 Mar 2015 Introduction of reloc Launch of Pall Mall XL to Pall Mall SKUs. - Nationwide
Slide 14: Q3 2015 Results Financial Highlights
Q3 2015 Results Financial Highlights
Slide 15: Q3 Discrete: Key Metrics
Q3 Discrete: Key Metrics Contract Manufacturing Volumes (mn stick) Cigarette Semi Finished Domestic & DF Volumes (mn stick)) 2,355 -38.7% 1,311 -9.9% 1,883 2,091 1,441 1,014 Q3 2014 Q3 2015 Q3 2014 Q3 2015 Net Turnover (RM'mn) Profit from Operation (RM'mn) 660 -2.8% 349 641 326 +7.2% Q3 2014 Q3 2015
Slide 16: Q3 YTD: Volume and Revenue
Q3 YTD: Volume and Revenue Contract Manufacturing Volumes (mn stick) Cigarette Semi Finished Domestic & DF Volumes (mn stick)) 7,220 5,071 -9.3% -22.8% 6,220 5,642 3,819 3,449 YTDQ3'14 YTDQ3'15 YTDQ3'14 YTDQ3'15 Revenue (RM'mn) Net Turnover (RM'mn) 3,590 -1.9% 3,524 -1.2% 1,965 1,941 YTDQ3'14 YTDQ3'
Slide 17: Q3 YTD: Key Metrics
Q3 YTD: Key Metrics Gross Profit (RM'mn) Operating Expenses (RM'mn) 1,267 +2.8% 1,302 340 303 +12.2% YTDQ3'14 YTDQ3'15 YTDQ3'14 YTDQ3'15 Profit from Operation (RM'mn) Earning per Share (Sen/share) 250 251 966 0.0% 966 +0.1% YTDQ3'14 YTDQ3'15 YTDQ3'14 YTDQ3'15
Slide 18: Dividend payout 2013-2015
2013 2014 2015 RM 2.82 RM 3.09 YTD 97.8% Payout 97.8% Payout
Slide 19: Other Highlights
BRITISH AMERICAN TOBACCO MALAYSIA Other Highlights
Slide 20: HR Excellence Awards 2015
HR Excellence Awards 2015 • We are pleased to announce that at the recent ‘HR Excellence Awards 2015’, British American Tobacco Malaysia bagged eight coveted awards in various categories, setting new benchmarks as one of the top performers in the HR industry. • British American Tobacco Malaysia beca
Slide 21: FMM Pioneer Members Award
FMM Pioneer Members Award We are extremely pleased to receive the Pioneer Members Award “Tribute to Selangor Members of 45 years & above’ from the Federation of Malaysian Manufacturers Selangor Branch as a recognition of our longstanding membership with them.
Slide 22: Most Profitable Company in Consumer Products Sector
The Edge Billion Ringgit Club Awards 2015 • Most Profitable Company in Consumer Products Sector (6th consecutive year)
Slide 23: Thank You
TOBACCO THANK YOU
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