British American Tobacco P.l.c. · LSE:BATS
British American Tobacco P.l.c — Debt Investor Presentation (February 2019)
12 slides from British American Tobacco P.l.c's debt investor presentation, Feb 28, 2019
Slide 1: Fixed Income Investor Update 2018
Fixed Income Investor Update 2018 28th February 2019 Ben Stevens, Finance Director Neil Wadey, Group Head of Treasury 1
Slide 2: Important Information
Important Information The information contained in this presentation in relation to British American Tobacco p.l.c. (“BAT”) and its subsidiaries has been prepared solely for use at this presentation. The presentation is not directed to, or intended for distribution to or use by, any person or entity
Slide 3: Important Information
Important Information Forward-looking Statements (continued) Additional information concerning these and other factors can be found in BAT’s filings with the U.S. Securities and Exchange Commission (“SEC”), including the Annual Report on Form 20-F filed on 15 March 2018 and Current Reports on Form 6
Slide 4: 2018 - A strong performance across all categories
2018 - A strong performance across all categories Strong Strategic Portfolio revenue growth, up +8.5%* Outperforming in Combustibles: market share up +40bps NGP revenue up +95%* to £901m* Strong results across the US business Exceeding High Single Figure constant currency earnings growth, up 11.8% *
Slide 5: We have the right strategy
We have the right strategy FMC THP Oral Vapour Multi-category Product platforms 5
Slide 6: 2018 Results Highlights
2018 Results Highlights PROFIT FROM VOLUME REVENUE EPS~ OPERATIONS REPORTED +3.3% +25.2% +45.2% -86.0% ADJUSTED CURRENT -3.5%” -2.3%” -1.5%” +5.2% ADJUSTED CONSTANT -3.5%* +3.5%* +4.0%* +11.8% “ Representative and adjusted basis. See Appendix, notes A1 and A2. 6 * Representative, adjusted and consta
Slide 7: 2018 Results – Adjusted Operating Margin % Up 40bps
2018 Results – Adjusted Operating Margin % Up 40bps” +0.4 1.8 42.6” 42.2 1.4 41.1 1.1 2017 Representative 2017 Changes in the Incremental 2018 Adjusted adjustment Representative business NGP impact Adjusted Margin AOM Margin 7 “ Representative and adjusted basis. See Appendix, notes A1 and A2.
Slide 8: 2018 Results – Adjusted Cash Generated from Operations
2018 Results – Adjusted Cash Generated from Operations £1,684m £845m £75m £1,533m £523m £1,891m £142m £601m £214m £10,347m” £8,071m” £7,684m” Adj operating Non cash items Working Capital Net Capex Pension fds - Net interest Tax Dividends to NCI Adjusted Cash Restructuring Div from Free cash flow pro
Slide 9: 2018 Results – Leverage
2018 Results – Leverage ▪ £1.6bn of debt paydown in 2018 Adjusted net debt/ ▪ Adjusted net debt/adjusted EBITDA at 4.0x on a current and approximately 3.6x Adjusted EBITDA on a constant currency basis ▪ Target further deleveraging 0.4x-0.5x, returning to the higher end of historic adjusted net debt/
Slide 10: 2018 Results – Adjusted Net Debt / Adjusted EBITDA (£b)
2018 Results – Adjusted Net Debt / Adjusted EBITDA (£b) Adjusted Net Debt 3.6x +0.2x 4.0x +0.2x 4.0x 3.9x / Adjusted EBITDA 1.7 44.6 43.4 42.5 41.7 41.7 Opening Net Debt Net Debt / EBITDA Adjustment FX & Other 2018 Net Debt 2018 Net Debt @ Constant @ Constant for EBITDA Non-Cash @ Current @ Spot fX
Slide 11: British American Tobacco
wy BRITISH AMERICAN TOBACCO
Slide 12: Appendix
Appendix A1: Representative basis Where appropriate, the Group is also presenting (as a supplement to the results) the 2018 performance against 2017, as though the Group had owned the acquisitions made in 2017 for the whole of that year. Comparison of results on this basis are termed “on a represent
British American Tobacco p.l.c. — Debt Investor Presentation (February 2019) on 6ix