British American Tobacco Malaysia Bhd. · MYX:BAT

British American Tobacco Malaysia Bhd — Q4 2014 Earnings Presentation

19 slides from British American Tobacco Malaysia Bhd's earnings presentation, February 2015

  1. Slide 1: Analyst Briefing Quarter 4, 2014

    Analyst Briefing QUARTER 4, 2014 February 2015

  2. Slide 2: Agenda

    AGENDA  Industry Review: Volumes and Market Share  BATM Review  2014 Performance

  3. Slide 3: 2014 Headlines

    2014 Headlines  Strong financial delivery vs. SPLY ― Net Turnover: +5.5% ― Profit from Operations +9.6%  Industry Volume decline -4.4% (FY’14 vs. FY’13)  Sharp decline in illegal cigarette incidence in W1’14 and W2’14 due to ongoing anti-illegal cigarette trade campaign  BAT SOM resilient – decl

  4. Slide 4: Industry Review: Volumes and Market Share

    Industry Review Volumes and Market Share

  5. Slide 5: Customs to continue with its robust enforcement activities in 2014

    Customs to continue with its robust enforcement activities in 2014 Daily Express, 12th Dec 2014

  6. Slide 6: Ops Outlet: National intensive RMC enforcement on illegal cigarettes

    Ops Outlet: National intensive RMC enforcement on illegal cigarettes Recent statistics from the Operasi Outlet campaign (2 January to 12 December):  No. of outlets raided = 6,012  No. of retailers arrested = 1,258

  7. Slide 7: RMC's Ops Outlet has contributed to excellent results to-date!

    RMC’s Ops Outlet has contributed to excellent results to-date! Unprecedented 6.6ppt decline - largest decline in TWO decades Source : Illegal Cigarettes Study 2013 (Oct – Dec) – 2014 (Jun-Aug) 38.9 The Star , 11 Dec 2014 35.8 32.3 -3.1ppt -3.5 ppt 29.2 26.0 25.5 9.7 9.8 6.8 2013 W3 (Oct-Dec) 2014 W1

  8. Slide 8: Market review update

    Market review update Legal market declined -4.4% vs. FY’13. Q4 negatively impacted by excise driven price increase. Big-3 IMS (mns) 1400 1268 1200 1095 1125 1139 1151 1112 1137 1082 1088 1047 1019 1053 1033 1065 1050 1027 1009 961 981 961 1000 905 887 863 870 800 600 400 200 0 Jan Feb Mar Apr May Ju

  9. Slide 9: BAT SOM remains resilient despite down trading pressure, mainly on Dunhill

    BAT SOM remains resilient despite down trading pressure, mainly on Dunhill J&J - Oil 3 Period Ended DEC14 | Hide NA's | Colour % Chg | Share of Sum(PROD) Source: YTD DEC 14 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) -0.7ppt +0.9ppt

  10. Slide 10: BATM Review

    BRITISH AMERICAN TOBACCO MALAYSIA BATM Review

  11. Slide 11: Dunhill: Strong performance on the back of Innovation

    BAT Dunhill: Strong performance on the back of Innovation Source: YTD DEC 14 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) -0.6ppt +1.2ppt MPI GPI Apr 2014 (Britannia) July 2014 Nov 2014 Dunhill FF & Lts - Limited Edition Pack Dunhill Taste Lights – Charcoal tube filter Relaunch

  12. Slide 12: Peter Stuyvesant: record share braking 5% SOM

    BAT Peter Stuyvesant: record share braking 5% SOM Source: YTD DEC 14 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) +1.1pt +0.2ppt PS LEP Source: Malaysia Retail Audit (Base: Total Whites, YTD DEC14) Produk ini mengandungi lebih 4,000 bahan kimia termasuk tar, nikotina dan karbon

  13. Slide 13: Pall Mall: stable SOM for the last 3 quarters

    BAT Pall Mall: stable SOM for the last 3 quarters Source: YTD DEC 14 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) -0.1ppt -0.8ppt Shield June 2014: Sept 2014: Pall Mall Kretek and Menthol Kretek Pall Mall Shield New Product Launch Introduction of “Reloc” Source: Malaysia Retail

  14. Slide 14: 2014 Results: Financial Highlights

    2014 Results Financial Highlights OBACCO

  15. Slide 15: Q4 Discrete: Key Metrics

    Q4 Discrete: Key Metrics Domestic & DF Volumes (mn stick)) Contract Manufacturing Vol. (mn stick) Cigarette Semi Finished 2,642 +5.1% -23.8% 1,798 1,873 1,968 1,338 1,235 Q4 2013 Q4 2014 Q4 2013 Q4 2014 Net Turnover (RM mn) Profit from Operations (RM mn) +6.2% 623 662 260 +3.5% 269 Q4 2013 Q4 2014 Q

  16. Slide 16: Q4 YTD: Volume and Revenue

    Q4 YTD: Volume and Revenue Domestic & DF Volumes (mn stick)) Contract Manufacturing Vol. (mn stick) Cigarette Semi Finished 9,385 -3.7% 8,503 8,188 9,018 -14.8% 7,229 5,142 YTD 2013 YTD 2014 YTD 2013 YTD 2014 Revenue (RM mn) Net Turnover (RM mn) 4,517 +6.2% 4,796 +5.5% 2,627 2,490 YTD 2013 YTD 2014

  17. Slide 17: Q4 YTD: Key Metrics

    Q4 YTD: Key Metrics Gross Profit (RM mn) Operating Expenses (RM mn) +12.5% 1,712 +20.9% 481 1,522 398 YTD 2013 YTD 2014 YTD 2013 YTD 2014 Profit from Operation (RM mn) Earning per Share (Sen/share) 316 +9.6% 1,234 288 +9.5% 1,126 YTD 2013 YTD 2014 YTD 2013 YTD 2014

  18. Slide 18: Dividend Payout

    Dividend Payout 2012 2013 2014 RM 2.72 RM 2.82 RM 3.09 97.4% Payout 97.8% Payout 97.8% Payout 0.77 0.78 0.78 0.78 0.78 0.75 0.68 0.68 0.68 0.65 0.65 0.65 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Dividend Growth 9.6% in 2014

  19. Slide 19: Thank You

    THANK YOU BRITISH AMERICAN TOBACCO MALAYSIA

British American Tobacco (Malaysia) Berhad — Q4 2014 Earnings Presentation on 6ix