British American Tobacco Malaysia Bhd. · MYX:BAT
British American Tobacco Malaysia Bhd — Q1 2021 Earnings Presentation
16 slides from British American Tobacco Malaysia Bhd's earnings presentation, May 31, 2021
Slide 1: Quarter 1, 2021 Performance
QUARTER 1, 2021 PERFORMANCE 31st May 2021
Slide 2: Agenda
Agenda 1 Q1 Business Review and Financial Performance 2 Other Business Update
Slide 3: Business performance
Business performance Q1 Business Review and Financial Performance
Slide 4: 2021 Key priorities
2021 Key priorities Key Enablers: 1 Combustible Value Growth Sustainability 2 Step-Change in New Categories Accelerating Tomorrow’s Leaders 3 A Simpler & Smarter Company
Slide 5: Q1 highlights
Q1 highlights +19% vs Q1’20 +19%vs Q1’20 Legal domestic BAT domestic volume industry volume +1.9ppt vs Q1’20 +18% vs Q1’20 +22% vs Q1’20 BAT Share of Market Revenue Profit from operations Source: CMTM Big 3 industry exchange, IPSOS Retail Audit Back to growth delivering strong Q1 result across all k
Slide 6: Legal domestic volume recovery
Legal domestic volume recovery Drop in illicit resulted in backflow to legal market +36% March vs SPLY MONTHLY AVERAGE VOLUME (MNS) Legal domestic industry volume 669 (mn sticks) 575 522 533 482 +39% March vs SPLY 332 268 250 BAT domestic volume 225 222 (mn sticks) Q1'20 Q1'21 Jan'21 Feb'21 Mar'21 S
Slide 7: Share growth momentum continued in Q1'21
Share growth momentum continued in Q1’21 BAT Retail Audit Share of Market (%) 52.3 +1.9ppt Q1’21 vs SPLY 51.7 51.4 50.6 2018 2019 2020 Q1'21 Source: IPSOS Retail Audit Malaysia Strong portfolio performance drives growth
Slide 8: Financial performance
Financial performance +14% +18% vs Q1’20 +22% +24% vs Q1’20 vs Q1’20 vs Q1’20 Total BAT volume Revenue Profit from operations Earnings per share (incl. Duty Free) Significant improvement across all key metrics
Slide 9: Q1 positive results driven by strong volume growth
Q1 positive results driven by strong volume growth Total Volume Revenue Profit from operations mns RM’mn RM’mn +14% +18% +22% vs SPLY vs SPLY vs SPLY Early signs of recovery from measures to tackle the tobacco black market
Slide 10: Optimising cost and securing inventories coverage
Optimising cost and securing inventories coverage Operating Expenses Inventories RM’mn RM’mn 52 56 199 215 Q1'20 Q1'21 Q1'20 Q1'21 Overhead savings offset by investment behind Holding 4 weeks of stock build to manage strengthening Dunhill, Rothmans & KYO uncertainties in supply and volatility in dem
Slide 11: Dividend payout for Q1 2021
Dividend payout for Q1 2021 Earnings per share 22.1 sen +24% vs Q1’20 Dividend 21.0 sen +24% vs Q1’20 Payout ratio 95% Payment scheduled for 30th June 2021
Slide 12: 2021 Outlook: Other Business Update
2021 Outlook Other Business Update
Slide 13: Despite early signs of recovery, tobacco black market remains a significant threat
Despite early signs of positive recovery, tobacco black market remains a significant threat Budget 2021 measures are a step However, tobacco black market Sustained momentum required in the right direction syndicates are shifting focus • Hold firm to Budget 2021 measures • Fiscal stability maintained
Slide 14: BAT supports regulations on vaping products
BAT supports regulations on vaping products Provide today's adult smokers with a choice of reduced-risk H Harm reduction products - In line with our A Better Tomorrow™ purpose Ensure Malaysian vapers use regulated products that >1 million vapers comply to safety and quality standards Generate econom
Slide 15: BAT Malaysia Summary
BAT Malaysia Summary BAT volume outperformed legal industry in March BAT brands growing in all price segments Significant improvement in all key financial indicators Encouraging Budget 2021 measures to tackle the tobacco black market. Sustainability requires supply and demand measures Progressive re
Slide 16: Thank you
2021 Outlook THANK YOU
British American Tobacco (Malaysia) Berhad — Q1 2021 Earnings Presentation on 6ix