British American Tobacco Malaysia Bhd. · MYX:BAT
British American Tobacco Malaysia Bhd — Q4 2020 Earnings Presentation
16 slides from British American Tobacco Malaysia Bhd's earnings presentation, Feb 10, 2021
Slide 1: Quarter 4, 2020 Performance
QUARTER 4, 2020 PERFORMANCE 10th Feb 2021
Slide 2: Agenda
Agenda 1 Q4 Business Review and Financial Performance 2 Other Business Updates
Slide 3: Q4 Business Review and Financial Performance
Q4 Business Review and Financial Performance
Slide 4: Q4 highlights
Q4 highlights Illegal cigarette incidence Share of segment Stable +3% 64.4% 60.1% vs Q3’20 vs Q3’20 Nov’20 Q4 2020 Legal domestic industry BAT total volume +1.0ppt +0.4ppt vs Q3’20 vs Q3’20 volume Source: CMTM Big 3 industry exchange, IPSOS Retail Audit Malaysia
Slide 5: Continuous improvement in BAT volume
Continuous improvement in BAT volume MONTHLY AVERAGE VOLUME (MNS) 565 566 Legal domestic 529 industry volume (mn sticks) 481 +14% +3% +15% 302 294 257 BAT domestic volume 224 (mn sticks) MCO MCO RMCO CMCO period period period period Q1-20 Q2-20 Q3-20 Q4-20 Sustained volume performance driven by Dunh
Slide 6: First year of share growth for BAT since 2015
First year of share growth for BAT since 2015 BAT SHARE OF MARKET (%) 52.5 +1.1ppt 52.4 vs 2019 51.7 51.5 50.6 50.4 2019 2020 Q1'20 Q2'20 Q3'20 Q4'20 Source: IPSOS Retail Audit Malaysia
Slide 7: Growth trajectory continued in Q4
Growth trajectory continued in Q4 +3% vs Q3’20 +5% vs Q3’20 +19% vs Q3’20 +14% vs Q3’20 Total BAT volume Revenue Profit from operations Earnings per share (including Duty Free) Growth momentum that started in Q2 continued through 3 consecutive quarters
Slide 8: Consecutive quarter on quarter sustained growth across all metrics
Consecutive quarter on quarter sustained growth across all metrics Q1’20 Q2’20 Q3’20 Q4’20 vs Q4’19 vs Q1’20 vs Q2’20 vs Q3’20 Volumes -29% +12% +18% +3% Revenue -27% +14% +15% +5% Profit from operations -48% +16% +6% +19%
Slide 9: Full year 2020 results mainly impacted by COVID-19, duty-free restrictions and downtrading
Full year 2020 results are mainly impacted by COVID-19, Duty-free travel restrictions and downtrading Total Volume Revenue Profit from operations mns RM’mil RM’mil -8% -8% -28% vs SPLY vs SPLY vs SPLY *Domestic performance excluding Duty Free
Slide 10: Continue to optimise cost base to support investments
Continue to optimise cost base to support investments Operating expenses (RM’mil) Restructuring expenses (RM’mil) Operating expenses excluding restructuring 230 233 100% completion RM15 mil RM19 mil 2019 2020 2019 2020 2020 operating expenses optimised via: • Cost base reduction and efficient resour
Slide 11: Dividend payout for Q4 2020
Dividend payout for Q4 2020 Earnings per share 25.5 sen +14% vs Q3 Dividend per share 27.0 sen +29% vs Q3 Payout ratio 106% Payment scheduled for 9th Mar 2021
Slide 12: Other Business Updates
MALAYSIA Other Business Updates Wey Fee - Wk Ue Le a Se pidete ae
Slide 13: Illegal tobacco crisis remains a key threat
Illegal tobacco crisis remains a key threat Budget 2021 step in the right Tobacco black market BAT actively engaging for direction continues to grow further action ✓ Tier 1 moratorium ✓ Import restrictions 64.4% 100k responses to surveys ✓ Transshipment restrictions November Illegal Cigarette Survey
Slide 14: Opportunity exists for Government to legalise nicotine vaping
Opportunity exists for Government to legalise nicotine vaping Growing global Vapour potential > 1million vapers agreement on the > 3,000 established revenue of using unregulated harm reduced SME vape retailers RM300m for MY products nature of vaping Government Malaysians deserve access to a regulate
Slide 15: BAT Malaysia Summary
BAT Malaysia Summary Dunhill, growing share of premium segment. Rothmans and KYO growing their share of market. 3 consecutive quarters of growth momentum. Significant enforcement and excise reform required to STOP THE BLACK MARKET. Encouraging Budget 2021 outcomes, nicotine vaping still needs to be
Slide 16: Thank you
Thank you ST
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