British American Tobacco Malaysia Bhd. · MYX:BAT
British American Tobacco Malaysia Bhd — Q1 2022 Earnings Presentation
16 slides from British American Tobacco Malaysia Bhd's earnings presentation, Jun 10, 2022
Slide 1: Quarter 1, 2022 Performance
QUARTER 1, 2022 PERFORMANCE 10th June 2022
Slide 2: Agenda
Agenda 1 Q1 Performance Review 2 Other Business Updates
Slide 3: Agenda
Agenda 1 Q1 Performance Review 2 Other Business Updates
Slide 4: Q1 '22 Business Performance – Highlights
Q1 ‘22 Business Performance – Highlights 57.7ppt -7% -7% -0.5ppt +0.5ppt vs FY ‘21 vs. Q1 ’21 vs. Q1 ’21 vs. Q1 ’21 Illegal Legal Domestic Total Share of Incidence Volume Volume Market Industry BAT Volume Downside driven by Consumption Impact Source: Illegal Cigarettes Study, CMTM Big 3 industry, ex
Slide 5: Q1 '22 Business Performance – Illicit vs Legal
Q1 ‘22 Business Performance – Illicit vs Legal Illicit Incidence Monthly Legal Industry Volume (bns) 63.8 0.55 0.56 0.53 57.2 57.7 2020 2021 Q1'22 2020 2021 Q1 '22 Source: Nielsen Illegal Cigarettes Study Source: CMTM Industry Exchange Rebound of Illicit Share | Omicron Outbreak leads to Lower Consu
Slide 6: Q1 '22 Business Performance – SoM
Q1 ‘22 Business Performance – SoM BAT Retail Audit Share of Market (%) 52.4 52.1 51.7 51.8 51.8 50.6 2019 2020 2021 Jan '22 Feb '22 Mar '22 Premium Share of Segment VFM Share of Segment +0.7ppt +1.0ppt (Q1 ‘22 vs SPLY) (Q1 ‘22 vs SPLY) Source: IPSOS Retail Audit Malaysia Slight Decline in Share due
Slide 7: Q1 '22 Financial Performance – Highlights
Q1 ‘22 Financial Performance – Highlights -7 % -8 % -5 % vs Q1 ‘21 vs Q1 ‘21 vs Q1 ‘21 Volume Revenue Operating Profit Lower Volume driving Soft Financial KPIs vs. SPLY | Cautiously Optimistic for FY
Slide 8: Q1 '22 Dividend Proposal
Q1 ‘22 Dividend Proposal Q1 ‘21 Q1 ‘22 Var Dividend for Board’s Approval Total BAT Volume 0.8 0.7 -7% 17 sen per ordinary share (bn sticks) RM49mil, payable on 24 Jun 2022 Revenue 567 522 -8% (RM mn) Dividend Yield 7% * Operating Profit (RM mn) 87 82 -5% Share Price (RM) Profit after tax (RM mn) 63
Slide 9: Agenda
Agenda 1 Q1 Performance Review 2 Other Business Updates
Slide 10: Combustible Value Growth, Step-Change in New Categories, A Simpler & Smarter Company
Combustible Step-Change in A Simpler & Value Growth New Categories Smarter Company Sustainability Accelerate Tomorrow’s Leader
Slide 11: Q1 Key Sustainability Activities
Q1 Key Sustainability Activities Excellence in Delivering a positive Robust corporate Reducing the HEALTH H E ENVIRONMENTAL S SOCIAL impact G GOVERNANCE impact of our business management 600 beneficiaries through flood 100% relief Compliance 100 internal All metrics beneficiaries standards & receive
Slide 12: Sustained Efforts Required to Address the Tobacco Black Market
Sustained Efforts Required to Address the Tobacco Black Market Supply Intervention Demand Intervention • Maintain Budget 2021 restrictions • Maintain excise rate moratorium • Focus enforcement on coastal smuggling • Reduce price gaps of legal and black market • Address tobacco black market syndicate
Slide 13: Regulatory Development on Vapour
Regulatory Development on Vapour Electronic Safety Standards on Device Bill to be Tabled in Parliament Regulatory framework for reduced-risk New requirement takes effect products must be well considered and not From 3rd August 2022 drive consumers to unregulated black-market
Slide 14: Other Regulatory Development
Other Regulatory Development Ban on smoking and sale of tobacco Ban on display of tobacco products at products including vape to anyone point of sale and plain packaging born after 2005 Government should prioritise its efforts to stop tobacco black market in the country to address smoking prevalence
Slide 15: Summary
Summary Q1 ‘22 was impacted by the emergence of Omicron Our brands continue to grow across strategic price segments Continuous efforts required to address tobacco black market as criminal syndicates move to coastal smuggling BAT urges risk proportionate regulations on vapour BAT is cautiously optimi
Slide 16: Q&A
Q&A
British American Tobacco (Malaysia) Berhad — Q1 2022 Earnings Presentation on 6ix