British American Tobacco P.l.c. · LSE:BATS
British American Tobacco P.l.c — Debt Investor Presentation (July 2018)
13 slides from British American Tobacco P.l.c's debt investor presentation, Jul 26, 2018
Slide 1: Fixed income investor update
Fixed income investor update 26 July 2018 BEN STEVENS Group Finance Director NEIL WADEY Group Head of Treasury
Slide 2: 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 3: Important Information
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 filed on 15 March 2018 and Current Reports on Form 6
Slide 4: On track for another good year
On track for another good year Strong growth in the * Strategic Portfolio Reynolds performing well NGPs on track for full year revenue >£1bn On track for another good year of constant currency earnings growth * The BAT Group does not own all brands referred to in this presentation in all markets e.g
Slide 5: 2018 Interim Results – Consistent delivery
2018 Interim Results – Consistent delivery Reported Adjusted~ Adj Current %* Adj Constant %* Financials Revenue £11,636mn £11,533mn -6.4% 1.9% Profit from Operations £4,438mn £4,818mn -5.4% 2.4% Diluted EPS 117.4p 137.2p 2.1% 10.4% NGP Revenue^ Volume +167%* 348bn to £427m Cigarettes & THP Organic -
Slide 6: Strong Strategic Brand Performance - Combustible + THP
Strong Strategic Brand Performance - Combustible + THP Strategic Brand Global Share including THP +160bps Strategic Brand Share +160bps Strategic brand Share +160bps +110bps +X% -10bps +XX% +50bps +0.2% +10bps +30bps* +80bps +XX% +100bps US Strategic Flat +120bps Brand Share US Strategic Brand Share
Slide 7: The US – a good underlying performance
The US – a good underlying performance US market dynamics remain robust Cost synergies ahead of plan 2018 Industry (STR) YOY % Change 14% 2018 - $140m 33% -2.0% -2.9% -3.9% Procurement -6.1% AVG Corporate Functions 54% -5.0% -7.7% -7.4% Operations Jan Feb Mar Apr May Jun FDA ➢ Revenue up +1.8% at co
Slide 8: 2018 Interim Results – Adjusted Cash Generated from Operations
2018 Interim Results – Adjusted Cash Generated from Operations £6,000m £285m £214m £231m £5,000m £73m £723m £813m £4,000m £96m £3,000m £4,818m £2,000m £2,953m £1,000m £0m Adj operating Non cash items Working Capital Net Capex Pension fds - Net interest Tax Dividends to NCI Adjusted Cash profit chg s
Slide 9: Litigation update
Litigation update QUEBEC CLASS ACTION CASES ➢ Two actions filed in 1998; Trial from March 2012 to December 2014 ➢ In May 2015, the trial court ruled that defendants failed to warn smokers of the dangers of smoking. Awarded CAD$15.6 billion against Canadian subsidiaries of BAT (Imperial Tobacco Canad
Slide 10: Credit Commitment and Financing Principles
Credit Commitment and Financing Principles › Targeting Net Debt/EBITDA of around 3x by end 2019, with further deleveraging thereafter, returning to the higher end of historic Net Debt/EBITDA target of 1.5x to 2.5x › Medium-term aspiration of BBB+/Baa1 with S&P and Moody’s › No share buy-back program
Slide 11: US Registration Process and SEC Shelf Programme
US Registration Process and SEC Shelf Programme ➢ As part of the financing of the Reynolds acquisition, US$17.25bn of bonds were issued in the US under Rule 144A and with registration rights ➢ The Group committed to investors that the bonds could be exchanged for registered notes before 31 March 201
Slide 12: |
12 | 12
Slide 13: Appendix
Appendix A1: Representative basis Results communications in 2018 will include presentation of results (volume, revenue and profit from operations) against 2017, as though the Group had owned the acquisitions made in 2017 for the whole of that year. Comparison of results on this basis will be termed
British American Tobacco p.l.c. — Debt Investor Presentation (July 2018) on 6ix