British American Tobacco Malaysia Bhd. · MYX:BAT
British American Tobacco Malaysia Bhd — Q2 2022 Earnings Presentation
17 slides from British American Tobacco Malaysia Bhd's earnings presentation, Jul 28, 2022
Slide 1: Quarter 2, 2022 Performance
QUARTER 2, 2022 PERFORMANCE 28th July 2022
Slide 2: Agenda
Agenda 1 Q2 Performance Review 2 Business Updates
Slide 3: Agenda
Agenda 1 Q2 Performance Review 2 Business Updates
Slide 4: Q2 '22 Business Performance – Highlights
Q2 ‘22 Business Performance – Highlights 57.7ppt +7% +6% +0.4ppt vs FY ‘21 vs. Q2 ’21 vs. Q2 ’21 Illegal Legal Domestic Total Incidence Volume Volume Industry BAT Volume Growth with Transition into Endemic Phase Source: Illegal Cigarettes Study (YTD Average), CMTM Big 3 industry exchange, IPSOS Reta
Slide 5: H1 '22 Business Performance – Highlights
H1 ‘22 Business Performance – Highlights 57.7ppt Flat Flat -0.6ppt +0.4ppt vs FY ‘21 vs. H1 ’21 vs. H1 ’21 vs. SPLY Illegal Legal Domestic Total Share of Incidence Volume Volume Market Industry BAT Steady H1 Performance with Strong Performance in Q2 Source: Illegal Cigarettes Study (YTD Average), CM
Slide 6: Q2 '22 Business Performance – Illicit vs Legal
Q2 ‘22 Business Performance – Illicit vs Legal Illicit Incidence Monthly Legal Industry Volume (bns) 63.8 0.60 0.56 0.54 0.54 57.3 57.7 57.7 2020 2021 Q1 '22 May 22 2020 2021 Q1 '22 Q2'22 Source: Nielsen Illegal Cigarettes Study Source: CMTM Industry Exchange Stabilised Illicit Share | Industry Offt
Slide 7: H1 '22 Business Performance – BAT SoM
H1 ‘22 Business Performance – BAT SoM BAT Retail Audit Share of Market (%) 52.4 51.9 51.7 51.5 50.6 2019 2020 2021 Q1 '22 May-22 Dunhill Share of Segment AP Share of Segment VFM Share of Segment +0.9ppt -3.4ppt +0.7ppt (YTD ‘22 vs SPLY) (YTD ‘22 vs SPLY) (YTD ‘22 vs SPLY) Source: IPSOS Retail Audit
Slide 8: Q2 '22 Financial Performance – Highlights
Q2 ‘22 Financial Performance – Highlights +6 % +7 % +2 % vs Q2 ‘21 vs Q2 ‘21 vs Q2 ‘21 Volume Revenue Operating Profit Volume Growth Offset by Higher Operating Expenses
Slide 9: H1 '22 Financial Performance – Highlights
H1 ‘22 Financial Performance – Highlights Flat Flat -1 % +190 m RM vs H1 ‘21 vs H1 ‘21 vs H1 ‘21 vs H1 ‘21 Volume Revenue Operating Profit Cash from Operations Steady Performance despite Challenging Environment
Slide 10: Q2 '22 Dividend Proposal
Q2 ’22 Dividend Proposal Q2 ‘21 Q2 ‘22 Var Total BAT Volume (bn sticks) 0.8 0.9 +7% Dividend for Board’s Approval Revenue (RM mn) 596 641 +8% 25 sen per ordinary share RM71mil, payable on 18 Aug 2022 Operating Profit (RM mn) 106 109 +3% Profit after tax 72 73 +3% Dividend Yield 9% * (RM mn) * Based
Slide 11: Agenda
Agenda 1 Q2 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: Q2 Key Sustainability Activities
Q2 Key Sustainability Activities E Capacity : 109,000 kWh/Year 57% Electricity CO2 Emissions World Environment Green Hero Challenge Solar Power System Day Celebration (Recycling) at JB Factory Circular Economy S Donation of Used laptop 100 Beneficiaries
Slide 14: Concerted Efforts Required to Address the Tobacco Black Market
Concerted Efforts Required to Address the Tobacco Black Market Intensify enforcement Implement right policy to arrest the to prevent black market tobacco smuggling demand of black market tobacco • Fully enforce Budget 2021 restrictions • Dedicate a taskforce to fight coastal smuggling • Maintain exc
Slide 15: Regulatory Development
Regulatory Development News reported that bill to regulate tobacco and vaping products tabled to Cabinet Ban on smoking and sale of tobacco products Ban on display of tobacco products at point of including vape to anyone born after 2005 sale and plain packaging No official announcement on decision m
Slide 16: Summary
Summary Q2 ‘22 is back to growth as the country transitioned into endemic phase Steady performance in H1 ‘22 despite challenging environment Our strategic brands continue to grow across Premium & VFM segments Continuous intensified efforts required to address tobacco black market BAT continues to ad
Slide 17: Q&A
Q&A
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