British American Tobacco Malaysia Bhd. · MYX:BAT
British American Tobacco Malaysia Bhd — Q3 2014 Earnings Presentation
22 slides from British American Tobacco Malaysia Bhd's earnings presentation, October 2014
Slide 1: Analyst Briefing Quarter 3, 2014
ANALYST BRIEFING QUARTER 3, 2014 October 2014
Slide 2: Agenda
AGENDA Industry Review, Market Share and Volumes BATM Review Q3 2014 Results
Slide 3: Q3 2014 Headlines
Q3 2014 Headlines Strong financial delivery vs. SPLY: - Q3 Profit from Operations: +8.4% - Q3 YTD Profit from Operations: +11.5% Sharp decline in illegal cigarettes incidence (W1’14) due to ongoing intensive enforcement efforts Legal Industry volume continues recovery vs. Q4 2013 BAT volume
Slide 4: Industry Review, Market Share and Volumes
Industry Review, Market Share and Volumes
Slide 5: Ops Outlet: National intensive enforcement on illegal cigarettes
Ops Outlet: National intensive enforcement on illegal cigarettes Recent statistics from the Operasi Outlet campaign (2 January to 7 Oct): Source : NST, 9th Oct 2014 No. of outlets raided = 4,679 No. of retailers arrested = 1,127 No. of retailers charged in court = 800 Total illegal cigarette
Slide 6: MOH launched OPS Puntung to combat illegal cigarettes
MOH launched OPS Puntung - to combat the possession and sales of illegal cigarettes The Sun , 10Sept 2014 3 Government Agencies cooperated together for the first time to take actions on errant consumers and retailers Forty notices were issued to people who were caught smoking in designated smoke-fre
Slide 7: Illegal cigarettes incidence down 3.1ppts due to robust enforcement
Illegal cigarettes incidence down 3.1ppts due to robust enforcement Source: Illicit Cigarette Study, 2010 - 2013 38.9 34.9 34.4 35.8 33.8 33.6 29.2 24.5 23.5 23 25.5 26 10.4 10.3 10.6 8.9 9.7 9.8 2012 Wave 2 (Jun - 2012 Wave 3 (Oct- 2013 Wave 1 (Mar- 2013 Wave 2 (Jun- 2013 Wave 3 (Oct- Wave 1 2014 A
Slide 8: Market review update
Market review update: Legal market recovery => YTD basis, -7.0% vs. SPLY (from -7.6% in H1). Big-3 IMS (mns) Quarterly basis: YTD Sept’14 vs. SPLY: YTD 2014 SPLY Industry Q3’14 Q2’14 Change Industry Average Average Change Total 3,205.0 3,141.3 +2.0% Total 1,038 1,115 -7.0% BAT 649 701 -7.4% Source :
Slide 9: Aspirational Premium continues to grow at the expense of Premium
Aspirational Premium continues to grow at the expense of Premium 74.0 73.3 YTD 13 YTD 14 SOM % 23.7 24.4 2.3 2.2 Premium Aspirational Premium VFM YTD Aug 14 vs. SPLY Share of Premium YTD 14 BAT 72.1 (-0.2) BAT continues to show clear leadership in the Share of Aspirational Premium Premium segment BA
Slide 10: BAT SOM resilient despite downtrading
BAT SOM resilient despite downtrading J&J - Oil 3 Period Ended AUG14 | Hide NA's | Colour % Chg | Share of Sum(PROD) Source: YTD Aug 14 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) -0.5ppt +1.0ppt
Slide 11: BATM Review
BRITISH AMERICAN TOBACCO MALAYSIA BATM Review
Slide 12: Dunhill: market share recovery after launch of DH Taste variant
BAT Dunhill: market share recovery in recent months after launch of DH Taste variant Source: YTD Aug 14 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) -0.3ppt +1.3ppt July 2014 Dec 2013 (Zeus) Apr 2014 (Britannia) Dunhill Taste Lights – Charcoal tube filter Dunhill FF & Lts - Limi
Slide 13: BAT Aspirational Premium stabilizing
BAT Aspirational Premium stabilizing Peter Stuyvesant strong performance offsetting Pall Mall loss Source: YTD Aug 14 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) BAT -0.7ppt -0.1ppt Source: Malaysia Retail Audit (Base: Total Whites, YTD AUG14)
Slide 14: Peter Stuyvesant continues growing since Jul'13
BAT Peter Stuyvesant continues growing since Jul’13, reaching 4.4 SOM in Aug. Source: YTD Aug 14 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) +0.8pt +0.2ppt Source: Malaysia Retail Audit (Base: Total Whites, YTD AUG14) Produk ini mengandungi lebih 4,000 bahan kimia termasuk tar,
Slide 15: Pall Mall: achieving stable market share after Q1 decline
BAT Pall Mall: achieving stable market share performance after Q1 decline Source: YTD Aug 14 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) -0.1ppt -0.7ppt Dec 2013: June 2014: Pall Mall FF & Lts Product Upgrade: Pall Mall Shield New Blend Plus Capsule Introduction of “Reloc” Sour
Slide 16: Q3 2014 Results Financial Highlights
Q3 2014 RESULTS FINANCIAL HIGHLIGHTS
Slide 17: Q3 Discrete: Volume and Revenue
Q3 Discrete: Volume and Revenue Domestic & DF Volumes (mn stick)) Contract Manufacturing Vol. (mn stick) Cigarette Semi Finished 2,377 2,355 - 7.3% -7.4% 2,255 2,091 1,724 1,441 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Revenue (RM mn) Net Turnover (RM mn) 1,171 +3.3% 1,210 +3.1% 640 660 Q3 2013 Q3 2014 Q3 20
Slide 18: Q3 Discrete: Key Metrics
Q3 Discrete: Key Metrics Gross Profit (RM mn) Operating Expenses (RM mn) +6.8% 431 103 +3.1% 106 403 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Profit from Operation (RM mn) Earnings per Share (Sen/share) 326 301 +9.9% 84 +8.4% 77 Q3 2013 Q3 2014 Q3 2013 Q3 2014
Slide 19: Q3 YTD: Volume and Revenue
Q3 YTD: Volume and Revenue Domestic & DF Volumes (mn stick)) Contract Manufacturing Vol. (mn stick) Cigarette Semi Finished 6,742 6,630 7,220 6,220 - 6.2% -12.6% 5,891 3,819 YTD 2013 YTD 2014 YTD 2013 YTD 2014 Revenue (RM'mn) Net Turnover (RM'mn) +4.9% +5.2% 3,424 3,590 1,867 1,965 YTD 2013 YTD 2014
Slide 20: Q3 YTD: Key Metrics
Q3 YTD: Key Metrics Gross Profit (RM mn) Operating Expenses (RM mn) +11.7% 303 1,267 269 +12.8% 1,134 YTD 2013 YTD 2014 YTD 2013 YTD 2014 Profit from Operation (RM mn) Earnings per Share (Sen/share) 250 +11.5% 966 222 +12.6% 866 YTD 2013 YTD 2014 YTD 2013 YTD 2014
Slide 21: Dividend Payout
Dividend Payout 2012 2013 2014 YTD RM 2.72 RM 2.82 97.4% Payout 97.8% Payout 0.77 0.78 0.78 0.78 0.75 0.68 0.68 0.68 0.65 0.65 0.65 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 22: Thank You
THANK YOU BRITISH AMERICAN TOBACCO MALAYSIA
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