British American Tobacco P.l.c. · LSE:BATS
British American Tobacco P.l.c — H1 2012 Earnings Presentation
32 slides from British American Tobacco P.l.c's earnings presentation, Jul 25, 2012
Slide 1: Half-Yearly Results 2012
HALF-YEARLY RESULTS 2012 25th July 2012
Slide 2: Nicandro Durante, Chief Executive
Nicandro Durante Chief Executive
Slide 3: Delivering the strategy
HALF-YEARLY RESULTS 2012 Delivering the strategy
Slide 4: Global drive brands
HALF-YEARLY RESULTS 2012 Global drive brands GDB volume: 112 bns, +4% International brands: 184 bns, +3% Organic premium volume: 91 bns, +0.4%
Slide 5: Global drive brands
HALF-YEARLY RESULTS 2012 Global drive brands • Volume: 23.8 billion • Volume: 15.8 billion • Share flat in T40 • Share up 0.1 ppt in T40 • Reloc driving the growth • Click & Roll driving volume and • Strong share performance Malaysia, share GCC, Romania, Brazil and S.Africa • Strong share performanc
Slide 6: Volumes and revenue
HALF-YEARLY RESULTS 2012 Volumes and revenue
Slide 7: Volumes and profit
HALF-YEARLY RESULTS 2012 Volumes and profit
Slide 8: Asia-Pacific
HALF-YEARLY RESULTS 2012 Asia-Pacific Profit growth in Japan, Australia, Malaysia and Vietnam Volume 0% Tough comparison with Japan one- off benefit in 1H 2011 GDBs 3% Share growth in Malaysia, Vietnam, Pakistan and Taiwan Revenue 1% S.Korea profit flat, volumes and share still impacted by price inc
Slide 9: Americas
HALF-YEARLY RESULTS 2012 Americas Good performance from Brazil, Chile and Colombia partially Volume 1% offset by Mexico Volume growth in Canada and Chile, offset by Brazil, Mexico GDBs ‐1% and Venezuela Colombian acquisition Revenue ‐2% continues to meet targets Profit ‐2% Operating margin +0.2 ppt
Slide 10: Western Europe
HALF-YEARLY RESULTS 2012 Western Europe Good performance, adverse FX Volume ‐4% Strong performances in Germany, France, UK and Romania GDBs 0% Growing share despite sharp decline in volumes Pall Mall Fine Cut #1 brand Revenue ‐4% Profit ‐2% Operating margin +0.5 ppt
Slide 11: Eastern Europe, Middle East and Africa
HALF-YEARLY RESULTS 2012 Eastern Europe, Middle East and Africa Excellent GDB performance across the region Volume 2% Strong performance in Russia, Kent still leading Premium GDBs 12% Turkey impacted by 2011 excise and competitor pricing Revenue 5% Share improvement in GCC, Nigeria, Russia, and Ukra
Slide 12: Ben Stevens
Ben Stevens Finance Director and Chief Information Officer
Slide 13: Operating margin
HALF-YEARLY RESULTS 2012 Operating margin * Based on adjusted profit
Slide 14: Profit from operations – adjusting items
HALF-YEARLY RESULTS 2012 Profit from operations – adjusting items £m 2012 2011 % change Adjusted profit 2,839 2,760 +3% Restructuring & integration costs (68) (40) Amortisation of trademarks (31) (29) Profit from operations 2,740 2,691 +2%
Slide 15: Profit before tax
HALF-YEARLY RESULTS 2012 Profit before tax £m 2012 2011 % change Profit from operations 2,740 2,691 +2% Net finance costs (211) (233) +9% Associates 344 329 +5% Profit before tax 2,873 2,787 +3%
Slide 16: Net finance costs
HALF-YEARLY RESULTS 2012 Net finance costs £m £m 2012 2011 Variance Interest payable (283) (287) +4 Investment income 50 42 +8 Fair value/exchange 22 12 +10 Net finance costs (211) (233) +22
Slide 17: Taxation and profit for the period
HALF-YEARLY RESULTS 2012 Taxation and profit for the period £m 2012 2011 % change Profit before tax 2,873 2,787 +3% Taxation (787) (781) -1% Profit for the period 2,086 2,006 +4% Underlying tax rate was 30.8% (2011: 31.4%)
Slide 18: Non-controlling interests and adjusted EPS
HALF-YEARLY RESULTS 2012 Non-controlling interests and adjusted EPS Profit attributable to £m 2012 2011 % change Shareholders’ equity 1,929 1,870 +3% Non-controlling interests 157 136 +15% Profit for the period 2,086 2,006 +4% Adjusted Profit for the period 2,008 1,912 +5% Number of shares 1,961 m 1
Slide 19: Drivers of adjusted EPS growth
HALF-YEARLY RESULTS 2012 Drivers of adjusted EPS growth Pence % EPS 2011 (p) 96.1. Profit performance 5.5. 6% Acquisitions / disposals 0.4. 0% Net finance costs 1.0. 1% Associates 2.2. 2% Taxation 0.7. 1% Non-controlling interests (1.5) -1% Share buy-back 1.1. 1% Exchange (3.1) -3% EPS 2012 (p) 102.
Slide 20: Cash flow
HALF-YEARLY RESULTS 2012 Cash flow 2012. 2011. £m. £m. Adjusted profit from operations 2,839 2,760. Non cash items 217. 256. Increase in working capital (1,247) (802) Net capital expenditure (190) (110) Operating cash flow 1,619 2,104. Net interest paid (253) (309) Tax paid (708) (744) Dividends pai
Slide 21: Cash flow
HALF-YEARLY RESULTS 2012 Cash flow 2012. 2011. £m. £m. Free cash flow 721. 956. Dividends paid to shareholders (1,723) (1,620) Share buy-back (536) (317) Net investment activities (27) -) Other net flows (85) (107) Net cash flow (1,650) (1,088)
Slide 22: Net debt
HALF-YEARLY RESULTS 2012 Net debt 2012. 2011. £m. £m. Opening net debt at 1 January (7,928) (7,841) Net cash flow for the period (1,650) (1,088) Exchange rate effects / accrued interest 183. (332) Net debt at 30 June (9,395) (9,261)
Slide 23: Good underlying results, FX headwinds
HALF-YEARLY RESULTS 2012 Good underlying results FX headwinds Adjusted EPS 7% higher at 102.4p, despite currency headwinds Proposed dividend per share 11% higher at 42.2 pence Pricing momentum continues into 2012
Slide 24: Thank you
HALF-YEARLY RESULTS 2012 Thank you for watching the webcast. The Q&A session will commence shortly. Thank you for your patience.
Slide 25: Half-Yearly Results 2012
HALF-YEARLY RESULTS 2012 25th July 2012
Slide 26: Supplementary Slides
SUPPLEMENTARY SLIDES Half-yearly results 2012
Slide 27: Volumes by region H1 2012
HALF-YEARLY RESULTS 2012 Volumes by region H1 2012 Region Billions 2012 2011 % change Asia Pacific 95 95 0% Americas 71 70 +1% Western Europe 62 65 -4% Eastern Europe, Middle East and Africa 116 114 +2% Group 344 344 0%
Slide 28: Volumes by region Q2 2012
HALF-YEARLY RESULTS 2012 Volumes by region Q2 2012 Region Billions 2012 2011 % change Asia Pacific 50 51 -2% Americas 34 34 -1% Western Europe 33 35 -6% Eastern Europe, Middle East and Africa 61 60 +3% Group 178 180 -1%
Slide 29: Revenue by region H1 2012
HALF-YEARLY RESULTS 2012 Revenue by region H1 2012 Region £m 2012 2011 % change Asia Pacific 2,050 2,025 +1% Americas 1,706 1,744 -2% Western Europe 1,649 1,719 -4% Eastern Europe, Middle East and Africa 2,047 1,950 +5% Group 7,452 7,438 0%
Slide 30: Adjusted profit from operations H1 2012
HALF-YEARLY RESULTS 2012 Adjusted profit from operations H1 2012 Region £m 2012 2011 % change Asia Pacific 815 766 +6% Americas 754 768 -2% Western Europe 558 572 -2% Eastern Europe, Middle East and Africa 712 654 +9% Group 2,839 2,760 3%
Slide 31: Margins: profit per mille
HALF-YEARLY RESULTS 2012 Margins: profit per mille
Slide 32: Foreign currencies
HALF-YEARLY RESULTS 2012 Foreign currencies Average Closing 2012 2011 2012 2011 US dollar 1.577 1.617 1.568 1.605 Canadian dollar 1.586 1.579 1.599 1.549 Euro 1.216 1.152 1.236 1.107 South African rand 12.521 11.146 12.828 10.883 Brazilian real 2.941 2.636 3.166 2.508 Australian dollar 1.528 1.564 1
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