British American Tobacco Malaysia Bhd. · MYX:BAT
British American Tobacco Malaysia Bhd — Q3 2022 Earnings Presentation
18 slides from British American Tobacco Malaysia Bhd's earnings presentation, Nov 17, 2022
Slide 1: Quarter 3, 2022 Performance
QUARTER 3, 2022 PERFORMANCE 17th November 2022
Slide 2: Agenda
Agenda 1 Q3 Performance Review 2 Business Updates
Slide 3: Agenda
Agenda 1 Q3 Performance Review 2 Business Updates
Slide 4: Q3 '22 Business Performance – Highlights
Q3 ‘22 Business Performance – Highlights 56.1ppt +14.8% +9.8% -1.2ppt vs FY ‘21 vs. Q3 ’21 vs. Q3 ’21 Illegal Legal Domestic Total Incidence Volume Volume Industry BAT Volume Growth Benefited from Illicit Reduction & Endemic Phase Source: Illegal Cigarettes Study, CMTM Big 3 industry exchange, IPSOS
Slide 5: YTD Q3 '22 Business Performance – Highlights
YTD Q3 ‘22 Business Performance – Highlights 57.3ppt +4.5% +3.1% -0.8ppt Flat vs FY ‘21 vs. SPLY vs. SPLY vs. SPLY Illegal Legal Domestic Total Share of Incidence Volume Volume Market Industry BAT Steady YTD Performance with Strong Performance in Q3 Source: Illegal Cigarettes Study, CMTM Big 3 indus
Slide 6: Q3 '22 Business Performance – Illicit vs Legal
Q3 ‘22 Business Performance – Illicit vs Legal Illicit Incidence Monthly Legal Industry Volume (bns) 63.8 0.60 0.60 0.56 0.54 0.54 57.3 57.7 57.7 56.1 2020 2021 Q1 '22 Q2 '22 Q3 '22 2020 2021 Q1 '22 Q2 '22 Q3 '22 Source: Nielsen Illegal Cigarettes Study (July’22) Source: CMTM Industry Exchange Furth
Slide 7: Q3 '22 Business Performance – BAT SoM
Q3 ‘22 Business Performance – BAT SoM BAT Retail Audit Share of Market (%) 52.4 51.9 51.7 51.5 51.5 50.6 2019 2020 2021 Q1 '22 Q2 '22 Q3 '22 Dunhill Share of Segment A.P. Share of Segment VFM Share of Segment +1.0ppt -3.0ppt +0.6ppt (YTD ‘22 vs SPLY) (YTD ‘22 vs SPLY) (YTD ‘22 vs SPLY) Source: IPSOS
Slide 8: Q3 '22 Financial Performance – Highlights
Q3 ‘22 Financial Performance – Highlights +10 % +9 % +8 % vs Q3 ‘21 vs Q3 ‘21 vs Q3 ‘21 Volume Revenue Operating Profit Solid Results with Volume Growth and Continuous Effort on Cost Optimisation Measures
Slide 9: YTD Q3 '22 Financial Performance – Highlights
YTD Q3 ‘22 Financial Performance – Highlights +3% +3% +2 % +305 m RM vs SPLY vs SPLY vs SPLY vs SPLY Volume Revenue Operating Profit Cash from Operations Q3 Upside Contributes to Positive YTD Performance
Slide 10: Q4 '22 Dividend Proposal
Q4 ‘22 Dividend Proposal Q3 ‘22 Q3 ‘21 Var Dividend approved by Board Total BAT Volume 0.95 0.86 +10% 25 sen per ordinary share (bn sticks) RM71mil, payable on 21st Nov 2022 Revenue 667 613 +9% (RM mn) Dividend Yield 9% * Operating Profit (RM mn) 116 108 +8% Share Price (RM) Profit after tax (RM mn)
Slide 11: Agenda
Agenda 1 Q3 Performance Review 2 Business Updates
Slide 12: Refined Strategy for Sustainable Growth
Refined Strategy for Sustainable Growth Combustible Step-Change in New A Simpler & Smarter Value Growth Categories Company ESG Front and Center
Slide 13: Q3 Key Sustainability Activities
Q3 Key Sustainability Activities Excellence in Delivering a positive Robust corporate Reducing the HEALTH H E ENVIRONMENTAL S SOCIAL impact G GOVERNANCE impact of our business management Integrity Week 2022 International Beach Cleanup Day (BATM Volunteerism) Kick Started BATM’s Flagship Community Co
Slide 14: Regulatory Development
Regulatory Development No tabling of Tobacco Bill in the recent Parliament session before the Parliament was dissolved BAT Malaysia believes the new Government needs to prioritise its efforts to stop tobacco black market in the country and develop appropriate regulatory framework for reduced-risk pr
Slide 15: Government on the right track to tackle tobacco black market with new initiatives
Government on the right track to tackle tobacco black market with new initiatives Key initiatives required to further drive down the tobacco Illicit incidence continues to decline black market 63.8 57.3 57.7 57.7 56.1 2020 2021 Q1 '22 Q2 '22 Q3 '22 • Focus enforcement on coastal smuggling Key driver
Slide 16: New measures from Budget 2023 announcement
New measures from Budget 2023 announcement BAT Malaysia welcomes additional measures to address revenue leakages from cigarette smuggling Additional measures announced: ✓ Special rewards scheme for enforcement to stop smuggling activities ✓ Enhanced controls at entry points for cigarettes including
Slide 17: Summary
Summary Q3 ’22 returned to normalcy following the reopening of the economy Solid results with volume growth and cost optimisation measures Our strategic brands continue to grow across Dunhill & VFM products Decline in illegal incidence due to sustained intensified measures Proposed Tobacco Bill now
Slide 18: Q&A
Q&A
British American Tobacco (Malaysia) Berhad — Q3 2022 Earnings Presentation on 6ix