British American Tobacco Malaysia Bhd. · MYX:BAT
British American Tobacco Malaysia Bhd — Q2 2011 Earnings Presentation
28 slides from British American Tobacco Malaysia Bhd's earnings presentation, Jul 21, 2011
Slide 1: British American Tobacco (Malaysia) Berhad 2nd Quarter 2011 Results
British American Tobacco (Malaysia) Berhad 2nd Quarter 2011 Results Analyst Presentation 21 July 2011
Slide 2: Agenda
Agenda Industry Review, Market Share and Volumes BATM’s Activities Quarter 2, 2011 Results Other Highlights Future Prospects
Slide 3: Industry Review, Market Share and Volumes
INDUSTRY REVIEW, MARKET SHARE AND VOLUMES
Slide 4: Sub VFM
Sub VFM +0.5pp ‐0.7pp +0.1ppt +1.2pp ‐1.0pp +0.6pp +0.6ppt ‐0.7pp ‐0.5pp ‐0.4pp Source: Malaysia Retail Audit (Base: Total Whites) Sub VFM segment continues to decline. Losses driven by adjustment of selling price back to minimum pricing.
Slide 5: Which contributed to our share recovery
Which contributed to our share recovery BAT (left axis) Others Jun vs. Jan’11 65 30 60.9 61.3 60.5 60.2 59.6 59.0 59.0 60.2 +2.6pp 60 58.9 58.7 25 55 20 50 15 45 10 9.0 9.5 8.7 40 6.6 7.3 7.8 7.7 7.0 5 ‐3.4pp 6.5 6.1 35 0 Sep‐10 Oct‐10 Nov‐10 Dec‐10 Jan‐11 Feb‐11 Mar‐11 Apr‐11 May‐11 Jun‐11 Source:
Slide 6: Industry volumes decreased
Industry volumes decreased Industry volumes (CMTM members) 3,743 2010 2011 4 3,495 9% 3,434 3,365 2% 3,180 2,888 3 (in b n stic k s) 2 1 0 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Shipment Volume Variance Variance Q2 2011 Q2 2010 1H 2011 1H 2010 (in bn sticks) Q2 11 vs Q2 10 1H 10 vs 1H 09 BATM 2.20 2.22 -1.2% 4.28
Slide 7: Weekly Volume Performance
Weekly Volume Performance 220 BAT - Invoice Volum e Perform ance 195 200 181 180 171 173 173 167 169 170 170 167 166 168 165 165 167 168 166 166 167 164 168 163 Million sticks 161 162 159 160 152 152 140 133 120 CNY 100 Wk1 3 5 7 9 11 13 15 17 19 21 23 25 27 2011 Week Source: Invoice YTD Wk28 2011
Slide 8: BAT & GDB Share
BAT & GDB Share 70 90 59.7 59.8 60.1 60.2 60.5 60.9 61.3 58.7 59.0 80 60 70 50 54.3 53.6 53.5 53.8 52.6 51.6 52.6 53.0 60 51.1 1.4 3.3 3.2 3.3 3.3 3.2 3.2 40 7.7 3.4 6.4 7.5 6.3 6.2 6.1 6.2 6.3 6.3 50 2.8 2.7 2.3 2.3 2.3 2.3 2.3 2.2 2.2 30 40 30 20 43.5 42.9 43.7 42.2 42.8 43.8 43.9 44.4 44.8 20 10
Slide 9: Market remains Premium-skewed
Market remains Premium-skewed Q2 2010 Q2 2011 80.0 71.4 71.2 60.0 40.0 21.6 22.4 20.0 7.0 6.4 0.0 Premium Vfm Sub Vfm BATM BATM Q2 2010 Q2 2011 Share of Premium 73.4 Share of Premium 72.3 Share of Value for Money 36.5 Share of Value for Money 42.5 Share of Sub‐VFM ‐ Share of Sub‐VFM ‐ Source: Malays
Slide 10: BAT VFM share of segment growing
BAT VFM share of segment growing +3.5ppt Source: Malaysia Retail Audit (Base: Total Whites) Improvements in BAT VFM SOS (+6.2pp YTD 2011 vs SPLY)
Slide 11: Brand Activities and Performance
BRAND ACTIVITIES AND PERFORMANCE
Slide 12: Dunhill
Dunhill Dunhill Global Pack Design with RELOC Jan 2011: Dunhill Menthol BOOST May 2011: Dunhill SWITCH First convertible cigarette in Malaysia Source: Malaysia Retail Audit (Base: Total Whites) Produk ini mengandungi lebih 4,000 bahan kimia termasuk tar, nikotina dan karbon monoksida yang membahayak
Slide 13: New Product Line…. Dunhill Switch
New Product Line…. Dunhill Switch 100% natural Menthol Capsule Improved Design for Tipping paper – shorter vs Boost. Produk ini mengandungi lebih 4,000 bahan kimia termasuk tar, nikotina dan karbon monoksida yang membahayakan kesihatan.
Slide 14: Pall Mall
Pall Mall Source: Malaysia Retail Audit (Base: Total Whites) Produk ini mengandungi lebih 4,000 bahan kimia termasuk tar, nikotina dan karbon monoksida yang membahayakan kesihatan.
Slide 15: Peter Stuyvesant
Peter Stuyvesant Source: Malaysia Retail Audit (Base: Total Whites) International Peter Stuyvesant Core Range International Peter Stuyvesant 2011 Edition Produk ini mengandungi lebih 4,000 bahan kimia termasuk tar, nikotina dan karbon monoksida yang membahayakan kesihatan.
Slide 16: Financial Highlights
BRITISH AMERICAN TOBACCO MALAYSIA FINANCIAL HIGHLIGHTS
Slide 17: Quarter 2, 2011 vs Quarter 2, 2010
Quarter 2, 2011 vs Quarter 2, 2010 EPS declines less than volume benefiting from proactive cost management and productivity savings, partially offset by unfavourable mix.
Slide 18: 1H 2011 vs 1H 2010
1H 2011 vs 1H 2010 EPS declines less than volume benefiting from proactive cost management and productivity savings, partially offset by unfavourable mix.
Slide 19: Contract Manufacturing / Exports
Contract Manufacturing / Exports 1H 2010 1H 2011 11% 30% Domestic Brunei Duty Free Export 200% growth in cigarette export volume drives manufacturing cost per mille lower
Slide 20: Productivity Savings
Productivity Savings 60 51.3 50 2.8 44.8 41.5 39.8 1.6 8.6 38.6 40 6.7 4.5 2.7 3.3 RM million 3.9 8.2 30 12.9 23.4 3.4 20 15.4 39.9 36.5 32.6 28.8 4.9 16.6 23.0 10 7.0 7.0 0 0.3 6.7 3.5 3.4 0 2004 2005 2006 2007 2008 2009 2010 1H 2011 Supply Chain Indirects Overheads
Slide 21: Other Highlights
BRITISH AMERICAN TOBACCO MALAYSIA OTHER HIGHLIGHTS
Slide 22: New Smoke Free Zones in Melaka
New Smoke Free Zones in Melaka New non-smoking zones have been gazetted in the state of Malacca on 14th June 2011. Five areas in Melaka declared as smoke-free zones beginning 15 June 2011. They are: 1. Melaka Central District’ s World Heritage Area; 2. Melaka Raya District; 3. Alor Gajah town ce
Slide 23: Recent Corporate Responsibility & other highlights
Recent Corporate Responsibility & other highlights Installation of Rain Water Harvesting Tank: World Environment Day (WED) Installation of 2nd Rain Water Harvesting Tank to recycle rainwater for use in daily cleaning and wetting of tobacco dust waste Economizers for Boilers Installation of 3rd Econo
Slide 24: Recent Corporate Responsibility & other highlights (cont’d)
Recent Corporate Responsibility & other highlights (cont’d) Maternity Leave Extension Extension of Maternity Leave from 2 months to 3 months for employees BAT plc Global Sustainability Report 2010 Feature on Malaysia Feature on BAT Malaysia’s sustainability case studies in Global Sustainability Repo
Slide 25: Awards and recognition
Awards and recognition Recognition for BAT Malaysia at The Edge Billion Ringgit Club 2011 Corporate Awards BAT Malaysia was recognised in The Edge Billion Ringgit Club 2011 Corporate Award in the categories below: • Most Profitable Company with the Highest Return on Equity in the Consumer Products S
Slide 26: Future Prospects
BRITISH AMERICAN TOBACCO MALAYSIA FUTURE PROSPECTS
Slide 27: Future Prospects
Future Prospects BAT volumes up vs Quarter 1. BAT continues to outperform industry for 2nd Quarter running, supported by new product launches 1H volumes vs SPLY lower from high illicit & illegal pricing activity by certain sub VFM brands Financial impact of regulation prohibiting packs less
Slide 28: Thank You
BRITISH AMERICAN TOBACCO MALAYSIA Thank YOu
British American Tobacco (Malaysia) Berhad — Q2 2011 Earnings Presentation on 6ix