British American Tobacco Malaysia Bhd. · MYX:BAT
British American Tobacco Malaysia Bhd — Q4 2022 Earnings Presentation
19 slides from British American Tobacco Malaysia Bhd's earnings presentation, Feb 16, 2023
Slide 1: Quarter 4, 2022 Performance
QUARTER 4, 2022 PERFORMANCE 16th February 2023
Slide 2: Agenda
Agenda 1 Q4 Performance Review 2 Business Updates
Slide 3: Agenda: Q4 Performance Review
Agenda 1 Q4 Performance Review 2 Business Updates
Slide 4: Q4 '22 Business Performance – Highlights
Q4 ‘22 Business Performance – Highlights 54.8ppt +5.6% -12.6% -2.4ppt vs FY ‘21 vs. Q4 ’21 vs. Q4 ’21 Illegal Legal Domestic Total Incidence Volume Volume Industry BAT Continuous QoQ Illicit Reduction & BAT Volume affected by RTM Transition in Q4 ‘21 Source: Illegal Cigarettes Study, CMTM Big 3 indu
Slide 5: FY '22 Business Performance – Highlights
FY ‘22 Business Performance – Highlights 56.6ppt +4.8% -2.0% -0.8ppt -0.6 vs FY ‘21 vs. SPLY vs. SPLY vs. SPLY Illegal Legal Domestic Total Share of Incidence Volume Volume Market Industry BAT Industry Rebound with Illicit Reduction & RTM Transition in '21 impacts BAT’s Full Year Volume Source: Ille
Slide 6: FY '22 Business Performance – Illicit vs Legal
FY ‘22 Business Performance – Illicit vs Legal Illicit Incidence Monthly Legal Industry Volume (bns) 63.8 0.59 0.56 0.54 57.2 56.6 2020 2021 2022 2020 2021 2022 Source: Nielsen Illegal Cigarettes Study Source: CMTM Industry Exchange Further Illicit Reduction | Industry Offtake Rebound & Normalised
Slide 7: FY '22 Business Performance – BAT SoM
FY ‘22 Business Performance – BAT SoM BAT Retail Audit Share of Market (%) 52.4 51.9 51.7 51.6 51.5 51.5 50.6 2019 2020 2021 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Dunhill Share of Segment A.P. Share of Segment VFM Share of Segment +1.1ppt -2.8ppt +0.7ppt (FY '22 vs SPLY) (FY '22 vs SPLY) (FY '22 vs SPLY) Sour
Slide 8: Q4 '22 Financial Performance – Highlights
Q4 ‘22 Financial Performance – Highlights -13 % -11 % -9 % vs Q4 ‘21 vs Q4 ‘21 vs Q4 ‘21 Volume Revenue Operating Profit Impact from Volume Downside Cushioned by Cost Optimisation Measures
Slide 9: FY '22 Financial Performance – Highlights
FY ‘22 Financial Performance – Highlights -2 % -2 % -1 % +343 m RM vs SPLY vs SPLY vs SPLY vs SPLY Volume Revenue Operating Profit Cash from Operations Robust FY Results within Challenging Operating Environment | Effective Cash Conversion
Slide 10: Q1 '23 Dividend Proposal
Q1 ‘23 Dividend Proposal Q4 ‘22 Q4 ‘21 Var Dividend for Board’s Approval Total BAT Volume (bn sticks) 1.06 1.22 -14% 21 sen per ordinary share RM60mil, payable on 7 Mar 2023 Revenue (RM mn) 771 862 -11% Dividend Yield 7% * Operating Profit (RM mn) 100 110 -9% Profit after tax Share Price (RM) (RM mn
Slide 11: Agenda: Business Updates
Agenda 1 Q4 Performance Review 2 Business Updates
Slide 12: Refined Strategy for Sustainable Growth
Refined Strategy for Sustainable Growth Combustible Step-Change in New A Simpler & Smarter Value Growth Categories Company ESG Front and Center
Slide 13: Glo is in the Market now…
Glo is in the Market now… SATISFACTION AT UNPARALLELED VALUE
Slide 14: Q4 Key Sustainability Activities
Q4 Key Sustainability Activities E S G Renewable Energy Consumption People & Culture Recognition • Revamped Recognition Framework MSWG-ASEAN Corporate Governance Award 2021 • New Flex Work Policies Recognized as an “ASEAN Asset Class Total Solar Energy Generated 59,316 kWh Community Farm Gardens PLC
Slide 15: Regulatory Development
Regulatory Development BAT Malaysia welcomes a comprehensive review on the tobacco bill New Health Minister stated that a review will be conducted on the tobacco bill and the generational end game proposal Instead of introducing additional controls, BAT Malaysia urges the new Government to: • Priori
Slide 16: Government on the right track to tackle tobacco black market with new initiatives
Government on the right track to tackle tobacco black market with new initiatives Illicit incidence showing downward Key initiatives required to further drive down trend for 2 consecutive years the tobacco black market 63.8 57.2 56.6 2020 2021 2022 Key drivers of the reduction of illicit incidence:
Slide 17: Tabling of Budget 2023
Tabling of Budget 2023 Measures to address revenue leakages from cigarette smuggling announced in October before Parliament dissolution need to be maintained • Additional measures that were announced to address cigarette smuggling is a step in the right direction • New measures announced include: ➢
Slide 18: Summary
Summary Delivered FY ambition despite operating in challenging environment Glo launched as part of multicategory business transformation Our strategic brands continue to grow across Dunhill & VFM products Illicit incidence recorded downward trend for 2 consecutive years MoH to review the proposal on
Slide 19: Q&A
Q&A
British American Tobacco (Malaysia) Berhad — Q4 2022 Earnings Presentation on 6ix