British American Tobacco Malaysia Bhd. · MYX:BAT
British American Tobacco Malaysia Bhd — Q1 2016 Earnings Presentation
23 slides from British American Tobacco Malaysia Bhd's earnings presentation, April 2016
Slide 1: Analyst Briefing Quarter 1, 2016
Analyst Briefing QUARTER 1, 2016 April 2016
Slide 2: Agenda
Industry Review Company Review Q1 2016 Performance Other Highlights
Slide 3: Legal industry volumes declined by -29.7% vs SPLY
Legal Industry volumes declined by -29.7% vs SPLY (YTD Mar’16 vs SPLY) Nov 2015 shock excise increase has triggered a significant industry volume decline Financial Performance negatively impacted by volume decline: Revenue: - 19.9% Profit from Operations: -28.2% Illegal cigarettes impacting le
Slide 4: Industry Review
BRITISH AMERICAN TOBACCO MALAYSIA Industry Review
Slide 5: Market review update
Market review update YTD Mar 2016, legal market declined -29.7% vs. SPLY Slow recovery post the November 2015 shock excise increase => Affordability continues to be an issue Big-3 IMS (mns) YTD Mar’16 vs. SPLY: Monthly Avg. YTD Mar’15 YTD Mar’16 Change Industry 989 695 -29.7% BAT 619 408 -34.1% Sour
Slide 6: Company Review
BRITISH AMERICAN TOBACCO MALAYSIA Company Review
Slide 7: BAT's Share of Market continues to decline post excise increase
BAT’s Share of Market continues to decline post November 2015 shock excise increase driven by Dunhill. However Dunhill still maintains its leadership position within the legal market Source: YTD MAR16 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) +0.6ppt -2.3ppt Share of Market –
Slide 8: Dunhill Full Flavour declining month on month post excise increase
Dunhill Full Flavour declining month on month post November 2015 shock excise increase, while Lights and Menthol range remains resilient -0.5ppt -2.6ppt PI GPI Aug 2015 Launch of DH Mix Oct 2015 Jan 2016 (Double Capsule) - Dunhill LEP (FF & Lts) Dunhill Reserve Nationwide launch Source: YTD MARCH’16
Slide 9: Peter Stuyvesant gained +0.9ppt in YTD Mar'16 vs FY2015
Peter Stuyvesant gained +0.9ppt in YTD Mar’16 vs FY2015 Steady growth in recent months +0.9pt +1.3pt Feb 2016: Nov’15: Peter Stuyvesant New Line Remix (Line Extension Extension) Source: YTD MARCH’16 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek)
Slide 10: Pall Mall recorded a slight decline in YTD Mar'16 vs FY2015
Pall Mall recorded a slight decline in YTD Mar’16 vs FY2015. In recent months performance has been stable +0.1ppt -0.1ppt Source: YTD MARCH’16 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek)
Slide 11: Illegal cigarettes incidence spiked to almost 50% of total market
Illegal cigarettes incidence spiked to almost 50% of total market post November 2015 shock excise increase HIGH EXCISE ENVIRONMENT OVERSHADOWED SIGNIFICANT ENFORCEMENT RESULTS AMONG THE HIGHEST IN THE WORLD Retailers Charged In Court 1,994 Retailers Jailed 593 Retiler's Fined In Court RM 12.24 mn Il
Slide 12: Q1 2016 Results Financial Highlights
Q1 2016 Results Financial Highlights
Slide 13: Q1'16: Volume and Revenue
Q1’16: Volume and Revenue Domestic & DF Volumes (mn stick) Contract Manufacturing Volumes (mn stick) Cigarette Semi Finished -29.9% 1,933 1,997 -36.2% 931 1,400 1,201 1,068 Q1 2015 Q1 2016 Q1 2015 Q1 2016 Revenue (RM'mn) Net Turnover (RM'mn) -19.9% -23.8% 1,274 694 1,021 529 Q1 2015 Q1 2016 Q1 2015
Slide 14: Q1'16: Key Metrics
Q1’16: Key Metrics Gross Profit (RM'mn) Operating Expenses (RM'mn) 453 -21.9% 126 -5.7% 119 354 Q1 2015 Q1 2016 Q1 2015 Q1 2016 Profit from Operation (RM'mn) Earning per Share (Sen/share) 327 -28.2% -27.9% 235 85 61 Q1 2015 Q1 2016 Q1 2015 Q1 2016
Slide 15: Dividend Proposal
BRITISH AMERICAN TOBACCO Dividend Proposal
Slide 16: Dividend payout 2014-2016
2014 2015 2016 RM 3.09 RM 3.12 YTD 97.8% Payout 98.0% Payout
Slide 17: Other Highlights
Other Highlights OBACCO
Slide 18: Company Restructure and Wind Down of Factory Operations
Company Restructure and Wind Down of Factory Operations • 17 March 2016, British American Tobacco (Malaysia) Berhad (“Company”) made an announcement that it would restructure its business operations by sourcing tobacco products for its domestic market from other BAT Group factories regionally and wo
Slide 19: Company Restructure and Wind Down of Factory Operations
Company Restructure and Wind Down of Factory Operations • The land upon which the factory operations is located will be disposed of by the Company by way of a public tender exercise. The equipment and machinery currently used for factory operations is intended to be sold to related parties within Br
Slide 20: 55th Annual General Meeting (AGM) – 25th April
The 2015 Annual Report is now available! Click on the link below to download a copy from our corporate website: http://www.batmalaysia.com/grou p/sites/BAT_7RYJ8N.nsf/vwPage sWebLive/DO7SUKSJ?opendocu ment 55th Annual General Meeting (AGM) – 25th April In April, we held our 55th Annual General Meeti
Slide 21: Launch of BAT plc Sustainability Summary Report 2015
Launch of BAT plc Sustainability Summary Report 2015 • Report on the Group’s latest Sustainability Summary Report, ‘Value shared: An open door on our people, performance and promises’, was published on 22 March 2016. It provides an overview of our key focus areas and performance for the year. • Avai
Slide 22: Asia Recruitment Awards 2016
Asia Recruitment Awards 2016 • We are pleased to announce that BAT Malaysia has received four awards at the Asia Recruitment Awards 2016 ceremony held on 19th April 2016. • Awards won: - Best Graduate Recruitment Programme (GOLD) - Best Use of Recruitment Technology (SILVER) - Best Staff Referral Pr
Slide 23: Thank You
TOBACCO THANK YOU
British American Tobacco (Malaysia) Berhad — Q1 2016 Earnings Presentation on 6ix