British American Tobacco Malaysia Bhd. · MYX:BAT
British American Tobacco Malaysia Bhd — Q4 2021 Earnings Presentation
17 slides from British American Tobacco Malaysia Bhd's earnings presentation, Feb 8, 2022
Slide 1: Quarter 4, 2021 Performance
QUARTER 4, 2021 PERFORMANCE 8th February 2022
Slide 2: Agenda
Agenda 1 Q4 Business Review and Financial Performance 2 Other Business Updates
Slide 3: Business performance
Business performance Q4 Business Review
Slide 4: Key priorities
Key priorities Key Enablers: 1 Combustible Value Growth Sustainability 2 Step-Change in New Categories Accelerating Tomorrow’s Leaders 3 A Simpler & Smarter Company
Slide 5: 2021 and Q4'21 Highlights
2021 and Q4’21 Highlights +5 * % +5% -6.1ppt 2021 vs 2020 vs 2020 Vs 2020 Legal domestic BAT domestic Illegal industry volume volume FMC Source: ICS topline Nov’21 +15 +15% -2.5ppt * % Q4’2021 vs Q3’21 vs Q3’21 Vs May’21 Legal domestic BAT domestic Illegal industry volume volume FMC Source: ICS topl
Slide 6: Illicit remains a major threat
Illicit remains a major threat Transshipment restrictions and focused However, illicit remains a significant threat as enforcement are driving the reduction in illicit criminal syndicates continue to smuggle illicit incidence through coastal Illicit Incidence (%) Coastal smuggling route 64% 62% 59%
Slide 7: Share growth momentum continues in 2021
Share growth momentum continues in 2021 BAT Retail Audit Share of Market (%) 2021 vs 2020 52.4 +0.8 ppt 51.7 51.4 50.6 2018 2019 2020 2021 Premium share of segment VFM share of segment +1.9ppt +1.5ppt (2021 vs 2020) (2021 vs 2020) Source: IPSOS Retail Audit Malaysia (Nov-21) Winning portfolio strate
Slide 8: Financial Performance
2021 Outlook Financial Performance
Slide 9: 2021 and Q4'21 Highlights
2021 and Q4’21 Highlights +10% +14% +19% 2021 vs 2020 vs 2020 Vs 2020 Total BAT Volume Revenue Profit from (inc. Duty Free) operations +42% +41% +2% Q4’2021 vs Q3’21 vs Q3’21 vs Q3’21 Total BAT Volume Revenue Profit from (inc. Duty Free) operations Profit growth for the first time in 6 years
Slide 10: 2021 Financial performance
2021 Financial performance Total Volume Revenue Profit from operations mns RM’mn RM’mn +10% +14% +19% vs 2020 vs 2020 vs 2020 Positive results driven by volume growth for the first time since 2002
Slide 11: Dividend payout for Q4 2021
Dividend payout for Q4 2021 26 27 24 21 Earnings per share 25.0 sen Dividend 27.0 sen Q1'21 Q2'21 Q3'21 Q4'21 Dividend payout (sen) Payout ratio 108% Dividend Yield Payment scheduled for 4th March 2022 7% • Based on last 3 quarters dividend paid out and Q4’2021 declared
Slide 12: Other Business Updates
2021 Outlook Other Business Updates
Slide 13: Q4 Key sustainability activities
Q4 Key sustainability activities H E S G Excellence in Reducing the HEALTH Delivering a positive Robust corporate ENVIRONMENTAL impact of our business SOCIAL impact GOVERNANCE management All metrics relating to Flood relief program Continued advocacy Recognized for our ESG waste, water, energy to im
Slide 14: Appropriate regulations needed for vapour products
Appropriate regulations needed for vapour products Regulatory framework must be well Implementation of excise on nicotine considered and encourage switching from vapour has been delayed until after traditional cigarettes and not drive Government introduces regulatory consumers to cheap, unregulated
Slide 15: Government must maintain focus on tobacco black market
Government must maintain focus on tobacco black market Progress made but Supply and demand initiatives required tobacco black market remains a major threat to effectively address the tobacco black market Illicit Incidence (%) Supply Demand 64 58 2020 2021 Source : Nielsen ICS • Maintain Budget 2021
Slide 16: BAT Malaysia Summary
BAT Malaysia Summary Volume growth for the first time since 2002 driven by illicit backflow Profit growth for the first time since 2015 BAT brands continue to grow across all price segments Sustained consecutive quarter on quarter growth across key financial indicators Continued enforcement efforts
Slide 17: A 4) O
A 4) O
British American Tobacco (Malaysia) Berhad — Q4 2021 Earnings Presentation on 6ix