British American Tobacco P.l.c. · LSE:BATS
British American Tobacco P.l.c — Morgan Stanley Global Consumer Conference 2011
20 slides from British American Tobacco P.l.c's conference presentation, November 2011
Slide 1: Morgan Stanley Global Consumer Conference
Morgan Stanley Global Consumer Conference Ralph Edmondson, Head of Investor Relations New York - November 2011
Slide 2: Important information
Important information This presentation has been prepared by British American Tobacco p.l.c. ("British American Tobacco") for information purposes only and does not constitute, or form part of any offer or invitation to acquire, or any solicitation of any offer to acquire any securities of British A
Slide 3: The vision and strategy remain the same
The vision and strategy remain the same Sustainable, profitable growth Emphasis on improving execution Improved deployment of innovations Supported by productivity, winning organisation and responsibility Morgan Stanley Consumer Conference, November 2011
Slide 4: BAT strengths: Some great brands
BAT strengths Some great brands - Based on consumer insights - Opportunities in emerging consumer segments - Opportunities in key geographies - First to world innovations Morgan Stanley Consumer Conference, November 2011
Slide 5: BAT strengths: World leading innovations
BAT strengths Some great brands World leading innovations - Brand driven - Focused on size and scale - Deployment across the Globe - A full pipeline Morgan Stanley Consumer Conference, November 2011
Slide 6: BAT strengths: A great business mix
BAT strengths Some great brands Developed 30% World leading Emerging 70% innovations A great business mix Low Premium 31% 35% 34% VFM Morgan Stanley Consumer Conference, November 2011
Slide 7: BAT strengths: Fully integrated supply chain
BAT strengths Some great brands World leading innovations A great business mix Fully integrated supply chain - Leaf sourcing - Distribution Morgan Stanley Consumer Conference, November 2011
Slide 8: BAT strengths: Harm reduction
BAT strengths Some great brands World leading innovations A great business mix Fully integrated supply chain Harm reduction Morgan Stanley Consumer Conference, November 2011
Slide 9: BAT strengths: Depth of management talent
BAT strengths Some great brands World leading innovations A great business mix Fully integrated supply chain Harm reduction Depth of management talent Morgan Stanley Consumer Conference, November 2011
Slide 10: The growth targets are sustainable
The growth targets are sustainable Market share growth Revenue growth We can continue to improve margins Sustainable profit growth High single figure earnings growth is achievable Return of cash - 65% dividend payout ratio - Share buyback programme Morgan Stanley Consumer Conference, Nov
Slide 11: Recent performance
Recent performance Organic Organic Organic Adjusted volumes revenue profit EPS Target +/- 0.5% 3 – 4% 6 – 7% HSF 2008 +0.4% +7% +10% +19% 2009 -3.3% +5% +7% +19% 2010 -3.0% +3% +6% +15% 2011 latest -0.4% +7% +11% +10% 9 months 9 months 6 months 6 months Morgan Stanley Consumer Conference, November 2
Slide 12: Strong defensive performance
Strong defensive performance Daily Relative performance to FTSE100 31/12/2010 - 07/11/2011 (GMT) Price Value GBp GBp 2,850 1.26 2,800 1.23 2,750 1.2 2,700 Outperformed 2,650 1.17 1.14 FTSE100 by 2,600 1.11 26% 2,550 1.08 2,500 1.05 2,450 1.02 2,400 0.99 2,350 0.96 .123 .123 04 17 01 16 01 16 01 18 0
Slide 13: Consistent market outperformance
Consistent market outperformance Annual total shareholder return of 25% Daily BATS Relative performance to FTSE100 since 2000 31/12/1999 - 01/11/2010 (GMT) Price Value GBp GBp 2,200 8.5 8 2,000 7.5 1,800 7 6.5 1,600 6 1,400 5.5 5 1,200 4.5 4 1,000 3.5 800 3 2.5 600 2 400 1.5 1 .12 .123 2000 2001 200
Slide 14: 2011: So far, so good - Excise
2011: So far, so good Excise - Early shock in Mexico - Recent excise shock in Turkey - Generally, governments have been rational Morgan Stanley Consumer Conference, November 2011
Slide 15: 2011: Industry pricing has been rational
2011: So far, so good Excise Industry pricing has been rational - … despite Spain & Korea - 7% organic revenue growth Morgan Stanley Consumer Conference, November 2011
Slide 16: 2011: Volume decline is moderating
2011: So far, so good Excise Industry pricing has been rational Volume decline is moderating - Q3 volumes rose - Organic volumes down 0.4% - Japan effect was 2 billion or 0.4% Morgan Stanley Consumer Conference, November 2011
Slide 17: 2011: Margins improving
2011: So far, so good Excise Industry pricing has been rational Volume decline is moderating Margins improving - 35% target will be achieved ahead of schedule Morgan Stanley Consumer Conference, November 2011
Slide 18: 2011: Strategy delivering growth
2011: So far, so good Excise Industry pricing has been rational Volume decline is moderating Margins improving Strategy delivering growth Morgan Stanley Consumer Conference, November 2011
Slide 19: Opportunities to come
Opportunities to come 13% WORLD MARKET SHARE EXISTING PROFIT POOLS TACKLING ILLICIT TRADE PRODUCTIVITY Morgan Stanley Consumer Conference, November 2011
Slide 20: Morgan Stanley Global Consumer Conference
Morgan Stanley Global Consumer Conference Ralph Edmondson, Head of Investor Relations New York - November 2011
British American Tobacco — Morgan Stanley Global Consumer Conference 2011 on 6ix