British American Tobacco P.l.c. · LSE:BATS
British American Tobacco P.l.c — H1 2015 Earnings Presentation
35 slides from British American Tobacco P.l.c's earnings presentation, Jul 29, 2015
Slide 1: Interim Results 2015
INTERIM RESULTS 2015 29th July 2015
Slide 2: Nicandro Durante, Chief Executive
Nicandro Durante Chief Executive
Slide 3: Underlying business is performing well
INTERIM RESULTS 2015 Financials Volume Current Constant Revenue 5.9% 2.4% Cigarettes 2.9% £6.4bn 322bn Profit 6.0% 1.3% Total Tobacco 3.0% £2.5bn 334bn Margin flat GDBs 0.4pp 6.0% 39.2% 142bn EPS 1.6% 3.9% Total IBs 2.3% 100.2p 198bn Underlying business is performing well
Slide 4: Underlying business is performing well
INTERIM RESULTS 2015 Financials Volume Current Constant Revenue 5.9% 2.4% Cigarettes 2.9% £6.4bn 322bn Profit 6.0% 1.3% Total Tobacco 3.0% £2.5bn 334bn Margin flat GDBs 0.4pp 6.0% 39.2% 142bn EPS 1.6% 3.9% Total IBs 2.3% 100.2p 198bn Underlying business is performing well
Slide 5: Ben Stevens, Finance Director
Ben Stevens Finance Director
Slide 6: Regional performance
INTERIM RESULTS 2015 Regional performance* Cigarette Volume Revenue Profit 11.0% 9.2% 5.3% 2.6% 2.4% 0.9% 1.3% AsPac Amr WE EEMEA Group AsPac AsPac EEMEA Amr WE EEMEA Group Amr WE Group -0.7% -1.7% -2.9% -2.8% -2.6% -4.4% -4.5% -4.6% FX impact +0.8% -13.2% -8.5% -13.9% -8.3% -0.6% -10.8% -8.7% -10.5
Slide 7: Foreign exchange
INTERIM RESULTS 2015 Foreign exchange
Slide 8: Foreign exchange impacts
INTERIM RESULTS 2015 Foreign exchange impacts Financials Current Constant Constant excl. transactional fx 2014 2015 2014 2015 2014 2015 Revenue ‐10% ‐6% 3% 2% 3% 2% Profit ‐9% ‐6% 4% 1% 6% 5% Margin 0.3pp flat 0.5pp 0.4pp 1.1pp 1.2pp Good underlying performance masked by significant translational an
Slide 9: Asia Pacific – Regional Performance
INTERIM RESULTS 2015 Asia Pacific – Regional Performance Financials Volume Constant Current Revenue 2.8% 2.0% Cigarettes 0.7% £1,879m 103bn Profit 2.6% 3.2% GDBs 7.0% £781m 44bn
Slide 10: Americas – Regional Performance
INTERIM RESULTS 2015 Americas – Regional Performance Financials Volume Constant Current Revenue 11.0% 2.2% Cigarettes 4.4% £1,570m 60bn Profit 9.2% 1.6% GDB 5.6% £690m 18bn
Slide 11: Western Europe – Regional Performance
INTERIM RESULTS 2015 Western Europe – Regional Performance Financials Volume Constant Current Cigarettes 1.7% 52bn Revenue 0.9% 7.6% £1,597m Total Tobacco 2.5% 61bn Profit 5.3% 3.4% £566m GDB 32bn 4.4%
Slide 12: EEMEA – Regional Performance
INTERIM RESULTS 2015 EEMEA – Regional Performance Financials Volume Constant Current Revenue 2.6% 11.3% Cigarettes 4.5% £1,916m 107bn Profit 4.6% 15.1% GDB 6.3% £662m 49bn
Slide 13: Operating margin H1 2014 – H1 2015
INTERIM RESULTS 2015 Operating margin H1 2014 – H1 2015 Based on adjusted profit and current FX 0.5pp 0.2pp 1.6pp 1.6pp flat 44.7% 44.9% 41.5% 41.0% 39.2% 39.2% 37.2% 35.5% 35.6% 33.9% Asia Pacific Americas W Europe EEMEA Group 2014 2015
Slide 14: Drivers of adjusted EPS growth
INTERIM RESULTS 2015 Drivers of adjusted EPS growth
Slide 15: Cash flow
INTERIM RESULTS 2015 Cash flow
Slide 16: Financing/Shareholder returns
INTERIM RESULTS 2015 Financing/Shareholder returns Net debt increased by £2.9bn to £13.9bn Invested $4.7bn to retain shareholding in enlarged Reynolds American Potential transactions with Souza Cruz and TDR in Croatia announced Moody’s credit rating unchanged at A3 Fitch and S&P ratings re
Slide 17: Nicandro Durante, Chief Executive
Nicandro Durante Chief Executive
Slide 18: Key highlights
INTERIM RESULTS 2015 Key highlights • Good underlying performance
Slide 19: Key highlights
INTERIM RESULTS 2015 Key highlights • Good underlying performance • Strong GDB growth
Slide 20: Global Drive Brands
INTERIM RESULTS 2015 Global Drive Brands Volume: 27 billion, up 2.4% Share up 0.2ppt Innovations account for over 80% of volumes Key driver of premium share growth Strong volume and share growth in Indonesia and Brazil
Slide 21: Global Drive Brands
INTERIM RESULTS 2015 Global Drive Brands Volume: 27 billion, up 2.4% Volume: 30 billion, down 0.9% Share up 0.2ppt Share flat Innovations account for over 80% of volumes Impacted by market declines in Russia and Ukraine Key driver of premium share growth Growth in the Middle East and Turkey Strong v
Slide 22: Global Drive Brands
INTERIM RESULTS 2015 Global Drive Brands Volume: 27 billion, up 2.4% Volume: 30 billion, down 0.9% Share up 0.2ppt Share flat Innovations account for over 80% of volumes Impacted by market declines in Russia and Ukraine Key driver of premium share growth Growth in the Middle East and Turkey Strong v
Slide 23: Global Drive Brands
INTERIM RESULTS 2015 Global Drive Brands Volume: 27 billion, up 2.4% Volume: 30 billion, down 0.9% Share up 0.2ppt Share flat Innovations account for over 80% of volumes Impacted by market declines in Russia and Ukraine Key driver of premium share growth Growth in the Middle East and Turkey Strong v
Slide 24: Global Drive Brands
INTERIM RESULTS 2015 Global Drive Brands Volume: 27 billion, up 2.4% Volume: 30 billion, down 0.9% Share up 0.2ppt Share flat in T40 Innovations account for over 80% of volumes Impacted by market declines in Russia and Ukraine. Key driver of premium share growh Growth in the Middle East and Turkey V
Slide 25: Key highlights
INTERIM RESULTS 2015 Key highlights • Good underlying performance • Strong GDB growth • Margin maintained despite transactional FX impact
Slide 26: Key highlights
INTERIM RESULTS 2015 Key highlights • Good underlying performance • Strong GDB growth • Margin maintained despite transactional FX impact • NGP development continues
Slide 27: Key highlights
INTERIM RESULTS 2015 Key highlights • Good underlying performance • Strong GDB growth • Margin maintained despite transactional FX impact • NGP development continues • M&A transactions on track
Slide 28: Summary
INTERIM RESULTS 2015 Summary Underlying business is performing well Excellent performance from the GDBs Pricing environment better than 2014 Significant currency headwinds continue Operating margin maintained Strong H1 comparator unwinds On track for another good year of earnings growt
Slide 29: Interim Results 2015
INTERIM RESULTS 2015 29th July 2015
Slide 30: Supplementary Slides
SUPPLEMENTARY SLIDES 29th July 2015
Slide 31: Cigarette volumes by region HY 2015
INTERIM RESULTS 2015 Cigarette volumes by region HY 2015 Region Billions 2015 2014 % change Asia Pacific 103 104 -1% Americas 60 63 -4% Western Europe 52 52 -2% Eastern Europe, Middle East and Africa 107 112 -5% Group 322 331 -3%
Slide 32: Cigarette volumes by region Q2 2015
INTERIM RESULTS 2015 Cigarette volumes by region Q2 2015 Region Billions 2015 2014 % change Asia Pacific 54 53 +1% Americas 31 32 -4% Western Europe 28 29 -0% Eastern Europe, Middle East and Africa 56 59 -5% Group 169 173 -2%
Slide 33: Revenue by region HY 2015
INTERIM RESULTS 2015 Revenue by region HY 2015 Region £m 2015 2014 % change Asia Pacific 1,893 1,932 -2%. Americas 1,384 1,415 -2% Western Europe 1,463 1,583 -8% Eastern Europe, Middle East and Africa 1,658 1,868 -11% Group 6,398 6,798 -6% All numbers as reported
Slide 34: Adjusted profit from operations HY 2015
INTERIM RESULTS 2015 Adjusted profit from operations HY 2015 Region £m 2015 2014 % change Asia Pacific 776 801 -3% Americas 622 632 -2% Western Europe 519 537 -3% Eastern Europe, Middle East and Africa 590 695 -15% Group 2,507 2,665 -6% All numbers as reported
Slide 35: Foreign currencies
INTERIM RESULTS 2015 Foreign currencies Average Closing 2015 2014 2015 2014 Australian dollar 1.949 1.825 2.046 1.812 Brazilian real 4.527 3.833 4.885 3.769 Canadian dollar 1.881 1.830 1.963 1.821 Euro 1.366 1.218 1.412 1.249 Indian rupee 95.782 101.454 100.150 102.839 Japanese yen 183.311 171.005 1
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