British American Tobacco Malaysia Bhd. · MYX:BAT
British American Tobacco Malaysia Bhd — Q4 2012 Earnings Presentation
25 slides from British American Tobacco Malaysia Bhd's earnings presentation, Feb 26, 2013
Slide 1: Analyst Briefing Quarter 4, 2012
ANALYST BRIEFING QUARTER 4, 2012 26th February 2013
Slide 2: Agenda
Agenda Industry Review, Market Share and Volumes BATM Review Quarter 4, 2012 Results Other Highlights Future Prospects
Slide 3: Industry Review, Market Share, Volumes and BATM Review
INDUSTRY REVIEW, MARKET SHARE, VOLUMES AND BATM REVIEW
Slide 4: Industry Volume: Marginal increase in 2012 vs. SPLY
Industry Volume: Marginal increase in 2012 vs. SPLY Source: Industry Exchange, Invoice volumes Note: Sub-VFM volumes extrapolated from Retail Audit Industry Volumes (bns) Big3 + Sub VFM 4.0 4.2 5% 3.5 3.6 3% 3.6 3.5 2% 3.1 3.2 5% Q1 Q2 Q3 Q4 2011 2012 Volume Variance % Variance Volume Variance % Var
Slide 5: Premium segment further grew arriving at 74.8% SOM
Premium segment further grew arriving at 74.8% SOM Source: Dec 2012 Malaysia Retail Audit (Base: White Only) 80 71.8 74.8 FY 2011 70 60 FY 2012 SOM % 50 40 30 21.8 21.4 20 10 6.4 3.8 0 Premium VFM SubVFM 2012 2011 YTD Q3 YTD Q4 YTD Q3 YTD Q4 Share of Premium 72.0 72.0 Share of Premium 72.0 72.0 Shar
Slide 6: Illicit incidence declined 1.6ppt in 2012, to land at 34.5%
Reasonable price increase & strong enforcement by authorities have resulted in decline in Illicit Trade in 2012 Source: Illicit Cigarette Study, 2008 - 2012 37.5 37.3 36.3 40 36.3 -1.0ppt 34.9 -1.2ppt 36.1 34.8 -1.5ppt 34.7 -0.2ppt -1.6ppt 34.5 -0.1ppt 35 +0.2ppt 33.8 -1.1ppt 30 20.7 23.9 25 21.9 22
Slide 7: 3rd Year of Share Growth, Driven by Dunhill
BAT: Continued acceleration of corporate share growth for the 3rd consecutive year! Source: FY 2012 Malaysia Retail Audit (Base: White Only) BATM +1.6ppt 63.2 Source: Malaysia Retail Audit (Base: Total Whites, YTD DEC12) 3rd Year of Share Growth, Driven by Dunhill
Slide 8: Dunhill: exited 2012 with an impressive 48.1% SOM in Dec
Dunhill: exited 2012 with an impressive 48.1% SOM in Dec Source: FY 2012 Malaysia Retail Audit (Base: White Only) BAT April 2012 Dunhill Switch: new & improved pack +2.6ppt April 2012 Year-long equity building campaign Q4 2012 New RELOC Seal Design Q4 2012 Dunhill Switch Source: Malaysia Retail Audi
Slide 9: Dunhill Lights registered 3.2% SOM in 2012, +0.4ppt vs. 2011
DH Lights continue to lead in Premium Lights Source: FY 2012 Malaysia Retail Audit (Base: White Only) 3.2 3.3 3.1 3.1 2.8 2.4 DH Lts 2010 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Dunhill Lights registered 3.2% SOM in 2012, +0.4ppt vs. 2011 Produk ini mengandungi lebih 4,000 bahan kimia termasuk tar, nik
Slide 10: Successful DH Switch re-launch, with quarterly gains
Successful DH Switch re-launch, with quarterly gains. Registered 0.5% SOM in 2012 Apr 2011 Apr 2012 Oct 2012 DH Switch 1.0 Switch 2.0 REINFORCEMENT Launch GET THE BEST OF BOTH EXCEPTIONALLY CLICK TO SWITCH FROM LIGHTS TO MENTHOL WORLDS: SMOOTH & RICH LIGHTS TASTE FINISH BEST IN LIGHTS & WITH FRESH F
Slide 11: Pall Mall stabilized at 5.6% SOM in Q4 2012
Pall Mall stabilized at 5.6% SOM in Q4 2012 BAT Source: FY 2012 Malaysia Retail Audit (Base: White Only) -0.4ppt Feb 2012: Launch of Pall Mall Mint Jul 2012: Pall Mall Core Range Re-launch Sep 2012: Pall Mall Original Taste Pack Upgrade Source: Malaysia Retail Audit (Base: Total Whites, YTD DEC12) D
Slide 12: Peter Stuyvesant resilient at 3.2% SOM
Peter Stuyvesant resilient at 3.2% SOM Source: FY 2012 Malaysia Retail Audit (Base: White Only) BAT -0.1ppt Source: Malaysia Retail Audit (Base: Total Whites, YTD DEC12) Produk ini mengandungi lebih 4,000 bahan kimia termasuk tar, nikotina dan karbon monoksida yang membahayakan kesihatan.
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 14: Volume / NTO - Mix
Volume / NTO - Mix Volume (bns) +21% Net Turnover (RM'mn) +16% 23.3bns 2,259 mn 19.3bns 7.6 2.019 mn 4.6 179 5.7 6.7 105 186 20 9.0 9.0 1,894 1,895 YTD Q4 2011 YTD Q4 2012 YTD Q4 2011 YTD Q4 2012 Domestic & DF Contract Mfg - Cig Contract Mfg - (SFG)* Domestic & DF Contract Mfg - Cig Contract Mfg - (
Slide 15: Full Year 2012 vs SPLY 2011
Full Year 2012 v’s SPLY 2011 Marginal increase in volume. Higher revenue from contract manufacturing. Lower operating expenses result in higher Profit from Operations & EPS
Slide 16: Quarter 4, 2012 vs Quarter 4, 2011
Quarter 4, 2012 v’s Quarter 4, 2011 Volume increase - lower excise speculation in 2012. Revenue Increase - contract manufacturing, margin & volume. Lower Gross Profit - timing of export volume & higher freight costs
Slide 17: Productivity Savings
Productivity Savings 60 51 50 45 3 42 40 2 9 39 40 7 5 3 3 31 RM million 4 8 30 23 13 17 13 3 20 40 37 2 33 29 4 6.5 17 23 10 5 12 3 5 0 2005 2006 2007 2008 2009 2010 2011 FY 2012 Supply Chain Indirects Overheads Mfg Synergy & Logistic Significantly Lower Productivity Savings
Slide 18: Q4 Dividends
Q4 Dividends 2011: 97.6% Payout (110% inc. Special) 2012: 97.4% Payout 0.30 0.77 0.66 0.65 0.65 0.65 0.60 0.60 0.60 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Dividends for Q4 2012 at 77 cents per share
Slide 19: Other Highlights
OTHER HIGHLIGHTS
Slide 20: Recent CR Highlights
Recent CR Highlights BATM Foundation Scholarship Awards Ceremony A total of 19 aspiring students awarded with scholarships for the full duration of their courses, amounting to RM224,000.
Slide 21: External Recognition
External Recognition FinanceAsia Best Managed Companies Poll 2012 • Most Committed to a Strong Dividend Policy (1st place) • Best Corporate Governance (5th place) • Best Managed Company (6th place) The Edge Billion Ringgit Club (BRC) 2012 Corporate Awards • Most profitable Company (Consumer Products
Slide 22: External Recognition (cont'd)
External Recognition (cont’d) National Annual Corporate Report Awards (NACRA) 2012 • Industry Excellence Award (Consumer Products Category) • Silver Award (Best Designed Annual Report)
Slide 23: Future Prospects
FUTURE PROSPECTS
Slide 24: Future Prospects
Future Prospects Group seeks to continue its recent strong share momentum. Encouraged by increased enforcement activities leading to a gradual reduction in illicit trade. However, illicit trade and continuous illegal pricing below total taxes and Minimum Price by certain local brands continue to
Slide 25: Thank You
wha BRITISH AMERICAN TOBACCO MALAYSIA CELEBRATING 100 YEARS Thank You
British American Tobacco (Malaysia) Berhad — Q4 2012 Earnings Presentation on 6ix