British American Tobacco Malaysia Bhd. · MYX:BAT
British American Tobacco Malaysia Bhd — Q3 2021 Earnings Presentation
17 slides from British American Tobacco Malaysia Bhd's earnings presentation, Oct 28, 2021
Slide 1: Quarter 3, 2021 Performance
QUARTER 3, 2021 PERFORMANCE 28th October 2021
Slide 2: Agenda
Agenda 1 Q3 Business Review and Financial Performance 2 Other Business Update
Slide 3: Business performance
Business performance Q3 Business Review
Slide 4: 2021 Key priorities
2021 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: Q3 Highlights
Q3 Highlights -4 * % +1% +1% 57.9% May’21 vs Q2’21 vs Q2’21 vs Q2’21 Illegal FMC Legal domestic BAT domestic volume Total BAT volume (incl. Duty Free) -6.2ppt vs Dec’20 industry volume Source: Nielsen ICS report +0.2ppt vs Q2’21 +3% vs Q2’21 +1% vs Q2’21 +10% vs Q2’21 BAT Share of Market Revenue Pro
Slide 6: YTD Sep'21 highlights
YTD Sep’21 highlights +6 vs SPLY * % +7% vs SPLY +3% 57.9% May’21 vs SPLY Legal domestic BAT domestic volume Total BAT volume Illegal FMC industry volume (incl. Duty Free) -6.2ppt vs Dec’20 Source: Nielsen ICS report +1ppt Vs SPLY +7% vs SPLY +24% vs SPLY +26% vs SPLY BAT Share of Market Revenue Pro
Slide 7: BAT brands performing in strategic segments
BAT brands performing in strategic segments Dunhill Limited-edition pack celebrating Rothmans brand modernisation with national pride new pack Share of market Share of Premium segment Share of market Share of VFM segment +0.3ppt +0.2ppt +0.5ppt +0.8ppt Q3 vs Q2 Q3 vs Q2 Q3 vs Q1 (pre-launch) Q3 vs Q
Slide 8: Share growth momentum continues in Q3
Share growth momentum continues in Q3 BAT Retail Audit Share of Market (%) YTD Sep vs SPLY 52.7 52.4 +1 ppt 51.7 50.6 2019 2020 H1'21 Q3'21 Dunhill share of segment VFM share of segment +2.1ppt +2.5ppt (YTD Sep vs SPLY) (YTD Sep vs SPLY) Source: IPSOS Retail Audit Malaysia (Sep-21) Winning portfolio
Slide 9: Q3 Financial Performance
2021 Outlook Q3 Financial Performance
Slide 10: YTD Sep'21 Financial performance
YTD Sep’21 Financial performance Total Volume Revenue Profit from operations mns RM’mn RM’mn +3% +7% +24% vs SPLY vs SPLY vs SPLY Positive results driven by revenue growth and cost optimisation
Slide 11: Cost optimisation without compromising investments behind strategic brands
Cost optimisation without compromising investments behind strategic brands Operating Expenses RM’mn Share of Premium segment 181 153 +2.1ppt YTD Sep vs SPLY 78 Overheads -28 62 14 2 Restructuring Share of VFM segment 89 89 Marketing +2.5ppt Investment YTD Sep vs SPLY YTD Sep '20 YTD Sep '21 Source:
Slide 12: Dividend payout for Q3 2021
Dividend payout for Q3 2021 27 26 24 21 Earnings per share 27.6 sen +24% vs Q3’20 Dividend 26.0 sen +24% vs Q3’20 Q4'20 Q1'21 Q2'21 Q3'21 Dividend Yield Payout ratio 94% 7% • Based on average last 12 months share price Payment scheduled for 25th November 2021 • Based on last 3 quarters dividend paid
Slide 13: Other Business Updates
2021 Outlook Other Business Updates
Slide 14: Tobacco black market remains a significant threat
Tobacco black market remains a significant threat Budget 2021 measures had resulted in 6.2ppt reduction in However, tobacco black market syndicates are illicit cigarette incidence pivoting to coastal smuggling • Marine Police seized more than RM220 mil of smuggled items in H1’2021 compared to RM56 m
Slide 15: Progressive approach needed for nicotine vapour
Progressive approach needed for nicotine vapour H Harm reduction Provide today's adult smokers with a choice of reduced-risk products - In line with our A Better Tomorrow™ purpose Ensure Malaysia’s 1.1 million vapers have access to products that > 1 million vapers are regulated and compliant to qual
Slide 16: Q3 key Sustainability activities
Q3 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 COVID relief Recognised for Continued advocacy waste, water, energy programme excellence
Slide 17: BAT Malaysia Summary
BAT Malaysia Summary Continuous share & profit growth in Q3 despite FMCO restrictions BAT brands continue to grow across all price segments Sustained consecutive quarter on quarter growth across key financial indicators Enhanced enforcement and maintained tobacco excise are required to clamp down on
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