British American Tobacco P.l.c. · LSE:BATS
British American Tobacco P.l.c — Debt Investor Presentation (February 2021)
14 slides from British American Tobacco P.l.c's debt investor presentation, February 2021
Slide 1: Important Information
Important Information The information contained in this presentation in relation to British American Tobacco p.l.c. (“BAT”) and its subsidiaries has been prepared solely for use at this presentation. The presentation is not directed to, or intended for distribution to or use by, any person or entity
Slide 2: Important Information
Important Information Forward-looking Statements (continued) Additional information concerning these and other factors can be found in BAT’s filings with the U.S. Securities and Exchange Commission (“SEC”), including the Annual Report on Form 20-F and Current Reports on Form 6-K, which may be obtain
Slide 3: 'Accelerating Transformation'
‘Accelerating Transformation’ Growth in New Categories and Group earnings despite COVID-19 Fixed Income Update Call - Preliminary results 2020 Tadeu Marroco – Finance and Transformation Director | Neil Wadey – Group Head of Treasury
Slide 4: Committed to Building A Better Tomorrow: On track for our 2025 targets
Committed to Building A Better TomorrowTM Today, we have a significant CPTO* base of c.£90bn With a strong growing base of 10% Non-Combustibles** Revenue and already 13.5mn consumers £5bn New Category Revenue by 2025 To reduce the health impact 50mn Non-Combustible** Product Consumers by 2030 of our
Slide 5: FY 2020: Delivering Today
FY 2020: Delivering Today +20bps +15% +7.3% -4.3% Corporate Value New Category Price/Mix** BAT Volumes Share^ Revenue* (Combustibles) (FMC+THP+Hybrid) +3.3% +4.8% +5.5% £7.3bn Group Adjusted Profit* Adjusted Diluted Free Revenue* from operations EPS* Cash Flow*** Share growth versus FY19. Source: Co
Slide 6: Accelerating Non-Combustible consumer acquisition
Accelerating Non-Combustible consumer acquisition* Non-Combustible** consumer numbers Vapour THP ModernOral TraditionalOral 13.5 m 6.7 m 4.0 m 1.5 m 3.0 m +3.0m (29%) +1.5m (30%) +1.4m (51%) +0.7m (79%) +0.1m (5%) When including Includes consumer poly-usage***: 1.7m (+0.7m or 70%) poly-usage: 15.2mn
Slide 7: FY 2020: Building A Better Tomorrow
FY 2020: Building A Better TomorrowTM 13.5m 26 % 14 % 40 % Non-Combustible Value Share** Volume share** Volume Share** product consumers* In Top 5 markets In Top 6 markets In Top 9 markets +3m +52% +29% +62 % Vapour Pod/Liquid THP Stick Pouch Non-Combustible Volume growth product consumers* Volume g
Slide 8: FY 2020: Further Transformation Fuels Growth
FY 2020: Further Transformation Fuels Growth Delivering revenue, profit and earnings growth* in challenging circumstances Accelerating New Categories through H2 with good momentum into 2021 Combustibles and Quantum generating value and cashflow to invest in NCs £7.3bn FCF, driven by operating cash c
Slide 9: CASH: Strong Generation Driving Deleverage
CASH: Strong Generation Driving Deleverage Adj. Net Debt / Adj. 3.5x -0.3x 3.2x +0.1x 3.3x EBITDA 2.6 41.7 - 0.4 39.5 39.5 39.5 39.12 39.12 OPENING NET FREE CASH FLOW OTHER CASH & CLOSING NET DEBT FX CLOSING NET DEBT DEBT AFTER DIVS NON-CASH @ CONSTANT RATES* * On a constant rate basis. See Appendix
Slide 10: CASH AND DELEVERAGE: Strong Liquidity Position
CASH AND DELEVERAGE: Strong Liquidity Position >90% operating cash conversion Strong Operating Cash Strengthened Liquidity Manageable Maturity Flow Conversion in 2020 Profile £ in billions 8.9 £ in billions $ 3.9 100%* 103% 3.4 97% £ 1.9 € 3.9 $ 2.8 2.5 USD: Apr EUR: Apr GBP: Jun USD: Sep 7, 10 & 30
Slide 11: CAPITAL ALLOCATION: Our Priorities
CAPITAL ALLOCATION: Our Priorities ✓ Combustible value growth c.£40bn ✓ Working capital efficiencies 5 Year Drivers of cash Cumulative ✓ Capex = Depreciation* generation Free Cash ✓ £1bn Quantum savings 2020-2022 Flow ^ ✓ >90% operating cash flow conversion** ✓ 65% Dividend pay-out Capital Allocatio
Slide 12: FY 2021 GUIDANCE: Resilience in an Uncertain Environment
FY 2021 GUIDANCE: Resilience in an Uncertain Environment Performance within guidance 3-5% range dependent on Revenue Growth* +/- External factors: Mid Single Figure • COVID impact EPS Growth** • US industry volume • Associate performance Continued Deleverage c.3X Adjusted Net Debt/Adjusted EBITDA by
Slide 13: Confident in Medium-Term Guidance Post-COVID
Confident in Medium-Term Guidance Post-COVID High 3-5% Single £5bn 50mn Figure EPS* New Non- Revenue* Categories Combustible growth Revenue Consumers** Growth Adjusted diluted (post COVID) by 2025 by 2030 Creating Shared Stakeholder and Shareholder Value * On a constant rate basis. See Appendix A2.
Slide 14: Appendix
Appendix A1: Adjusting (Adj.) Adjusting items represent certain items which the Group considers distinctive based upon their size, nature or incidence. A2: Constant currency Constant currency – measures are calculated based on a re-translation, at the prior year’s exchange rates, of the current year
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