British American Tobacco P.l.c. · LSE:BATS
British American Tobacco P.l.c — Investor Day (March 2019)
15 slides from British American Tobacco P.l.c's investor day presentation, Mar 14, 2019
Slide 1: Investor Day | 14 March 2019
——EEE BRITISH AMERICAN TOBACCO Investor Day | 14 March 2019 * ae RANSFORMIN ACCELERATING DELIVERY —
Slide 2: Canadian Litigation Update
CANADIAN LITIGATION | UPDATE JEROME ABELMAN DIRECTOR, LEGAL AND EXTERNAL AFFAIRS AND GENERAL COUNSEL
Slide 3: Important Information
Important Information The information contained in this presentation in relation to British American Tobacco p.l.c. (“BAT”) and its subsidiaries has been prepared solely for use at this presentation. The presentation is not directed to, or intended for distribution to or use by, any person or entity
Slide 4: Important Information (continued)
Important Information Forward-looking Statements (continued) Additional information concerning these and other factors can be found in BAT’s filings with the U.S. Securities and Exchange Commission (“SEC”), including the Annual Report on Form 20-F to be filed on 15 March 2019 and Current Reports on
Slide 5: Agenda
Agenda 1 Canadian Litigation Environment 2 Quebec Class Actions: Litigation History 3 Quebec Class Actions: First Instance Decision 4 Quebec Class Actions: Quebec Court of Appeal Decision 5 CCAA Filing: Process and Next Steps
Slide 6: Canadian Litigation Environment
1. Canadian Litigation Environment › Canada has been an active jurisdiction for tobacco litigation, although, other than the Quebec Class Actions, only one other case was set down for trial › Majority of cases: Medicaid recoupment claims filed by all 10 provincial governments › Claims: Seeking recov
Slide 7: Quebec Class Action: History
2. Quebec Class Action: History › 1998: Two separate class actions were filed against Imperial Tobacco Canada Limited (ITCAN), BAT’s Canadian subsidiary, as well as the Canadian subsidiaries of Japan Tobacco and Philip Morris International, alleging ‘US-style’ tobacco product liability claims: › Bla
Slide 8: Quebec Class Actions: First Instance Decision
3. Quebec Class Actions: First Instance Decision › March 2012: Trial begins, lasts for over two years › May 2015: Trial court’s decision released, awarding a total of C$15.4B against the three defendants › ITCAN was allocated a total share of C$10.3B › ITCAN paid C$758M as security into escrow in a
Slide 9: Quebec Court of Appeal Decision
4. Quebec Court of Appeal Decision › November 2016: Appeal argued before a panel of five judges › March 1, 2019: Court of Appeal released a 422 page unanimous decision upholding the trial decision on all issues › A single adjustment on the allocation of interest was made, resulting in a reduction of
Slide 10: Quebec Court of Appeal Decision: Supreme Court Appeal
4. Quebec Court of Appeal Decision: Supreme Court Appeal › ITCAN continues to disagree with the judgments of the Quebec Court of Appeal and the Quebec Superior Court › While ITCAN intended to seek leave to appeal the decision to the Supreme Court of Canada, all proceedings are now stayed due to ITCA
Slide 11: CCAA Filing: Background
5. CCAA Filing: Background › 12 March: Board of Directors of Imperial Tobacco Canada Limited informed BAT that it sought protection for the company under CCAA › CCAA: A Federal Statute that allows corporations to restructure their affairs while continuing to operate in the ordinary course › The deci
Slide 12: CCAA Filing: Process - Appointment of Monitor
5. CCAA Filing: Process - Appointment of Monitor FTI has been appointed as Monitor to the company. Monitor’s role: › A Court Appointed position › Will have full access to the business and will monitor finances › Report periodically to the Court on business matters and matters related to the developm
Slide 13: CCAA Filing: Expected Impact is 'Business as Usual' Operations
5. CCAA Filing: Expected Impact is ‘Business as Usual’ Operations › ITCAN will continue to operate as a going concern › We expect the CCAA process to follow its normal course, under court supervision and that the company will continue to operate as usual in the meantime › All tobacco litigation is s
Slide 14: CCAA Filing: Next Steps
5. CCAA Filing: Next Steps › A comeback hearing will occur on 4 April whereby: › All claimants and stakeholders can appear and challenge any aspect of the Initial Order › It is likely that challenges will occur, but none have yet been received › In the meantime, all litigation is stayed and stakehol
Slide 15: Thank you.
——EEE BRITISH AMERICAN TOBACCO Thank you. cw * ae RANSFORMING ACCELERATING DELIVERY —
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