British American Tobacco P.l.c. · LSE:BATS
British American Tobacco P.l.c — UBS European Virtual Conference 2020
15 slides from British American Tobacco P.l.c's conference presentation, 2020
Slide 1: Delivering Growth through Transformation
Delivering Growth through Transformation UBS European Virtual Conference 2020 Jack Bowles – Chief Executive
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 26 March 2020 and Current Reports on Form 6
Slide 4: We are building A Better Tomorrow
We are building A Better Tomorrow OUR PURPOSE TO REDUCE THE HEALTH IMPACT OF OUR BUSINESS 4
Slide 5: We are building A Better Tomorrow
We are building A Better Tomorrow 50 MILLION* OUR PURPOSE £5bn* NON-COMBUSTIBLE NEW CATEGORY PRODUCT REVENUE BY CONSUMERS** BY 2030 2025 TO REDUCE THE HEALTH IMPACT OF OUR BUSINESS * ESG ambitions 5 ** See Appendix A6
Slide 6: With ESG Front & Centre
With ESG Front & Centre Driven by clear priorities : 28.2% BBB 50 million* consumers Eliminate unnecessary single- Carbon neutral of non-combustible use plastic and all plastic by 2030* Products** by 2030 packaging recyclable by 2025* * ESG ambitions. See Appendix A5. ** See Appendix A6 6
Slide 7: We are transforming the business and lowering our health impact
We are transforming the business And lowering our health impact Non-Combustible Combustible Consumers* Volumes 11.7m 311bn +2.7m -6.5% Last 12 months** H1 2020 Volume decline versus H1’19 * See Appendix A6 ** Last 12 months ended 30 June 2020
Slide 8: While continuing our financial delivery
While continuing our financial delivery Despite the challenging environment in H120 +12.7% +8.5% +3.3% >90% New Category Group Adjusted Profit* from Operating Cash Revenue* Price / Mix Operations Conversion* +2.4% +20bps +6.6% 65 % Group Corporate Value Adjusted Diluted Dividend Pay-out Revenue* Sha
Slide 9: With a Step Change in New Categories in H1
With a Step Change in New Categories in H1 20 Strong momentum across all New Categories 26% +7.7% 4% +1.6% 15% +0.5% T5 value share T6 volume share T8 volume share of Total Oral 145m pods 717m pouches 4.2bn sticks +43% +74% +9.1% Note: Vapour Value share includes Vype brands in UK, France and German
Slide 10: Combustible Value Growth & Simplifying the Business
Combustible Value Growth & Simplifying the Business Powered by Quantum Value from Combustibles Investing in New Capabilities Foresights 21st Century Innovation Capabilities & Funding beyond Nicotine Brand Building & Design Simplify the Business Phase 1: Phase 2 : complete Underway • Organisational •
Slide 11: The transformation is well under way
The transformation is well under way Non-Combustibles already a significant revenue % where we have invested 63% 42% 27% 27% 13% Note : % Revenue by market YTD Oct 2020 11
Slide 12: With great momentum in 2020
With great momentum in 2020 Strong share growth across all New Categories YTD vs. YTD vs. Sepshare Value YTD YTD YTD vs. FY’19 Sepshare Volume YTD YTD Sep YTD Volume share YTD FY’19 FY’19 23.8% +7.2pp 8.1% +2.5pp 5.3% +0.3pp Hyper @1.5% 40.3% +16.3pp 4.3% +2.1pp 2.4% +1.4pp Moscow 13.8% +2.6pp 74.2%
Slide 13: On track to deliver on guidance
On track to deliver on guidance Resilient performance in a challenging environment 1-3% Mid Single c.3x Net Debt/EBITDA Revenue * Figure EPS Growth** by 2021 COVID-19 expected to have a -3% impact on FY20 revenue * Adjusted Revenue on a constant rate basis. See Appendix A1 & A2 13 **Adjusted Diluted
Slide 14: We are building A Better Tomorrow
We are building A Better Tomorrow 50 MILLION * OUR PURPOSE £5bn * NON-COMBUSTIBLE NEW CATEGORY PRODUCT REVENUE BY CONSUMERS** BY 2030 2025 TO REDUCE THE HEALTH IMPACT OF OUR BUSINESS * ESG ambitions 14 ** See Appendix A6
Slide 15: Appendix
Appendix A1: Adjusting (Adj.) Adjusting items represent certain items which the Group considers distinctive based upon their size, nature or incidence. A2: Constant currency Constant currency – measures are calculated based on a re-translation, at the prior year’s exchange rates, of the current year
British American Tobacco p.l.c. — UBS European Virtual Conference 2020 on 6ix