British American Tobacco Malaysia Bhd. · MYX:BAT
British American Tobacco Malaysia Bhd — FY2015 Earnings Presentation
24 slides from British American Tobacco Malaysia Bhd's earnings presentation, February 2016
Slide 1: Analyst Briefing Quarter 4, 2015
Analyst Briefing QUARTER 4, 2015 February 2016
Slide 2: Agenda
AGENDA Industry Review Company Review 2015 Performance Other Highlights
Slide 3: Financial performance negatively impacted by volume decline
Financial Performance negatively impacted by volume decline: Revenue: - 4.5% Profit from Operations: + 0.5% Legal Industry volumes declined by -13.6% vs. 2014 Heavily impacted by weak consumer sentiments after GST implementation and by the excise led price increase in November 2015 Illeg
Slide 4: Industry Review
BRITISH AMERICAN TOBACCO Industry Review
Slide 5: Market review update
Market review update FY2015, legal market declined -13.6% vs. SPLY Volume severely impacted by softer market after GST implementation and the excise led price increase in November’15. Big-3 IMS (mns) FY2015 vs. SPLY: Monthly Avg. FY2014 FY2015 Change Industry 1015 877 -13.6% BAT 639 553 -13.5% Sourc
Slide 6: Weaker consumer sentiment post GST increased demand for illegal cigarettes
Weaker consumer sentiment post GST introduction resulted in the increase for demand of illegal cigarettes despite robust enforcement action by Customs *Illicit Cigarette Study, Wave 2, Jun-Aug 2015
Slide 7: Continuous effort by RMC to fight illegal cigarettes
Continuous effort by RMC to fight illegal cigarettes Enhance FEAR FACTOR among retailers through OPS Outlet version 3.0 Prosecute the Owners of outlets that sell illegal cigs with heavier punishments OPS OUTLET version 2.0 2015 OPS OUTLET version 3.0 2016 • No. of retailers jailed & fined : 612 • La
Slide 8: Key Messages to Retailers by RMC
Key Messages to Retailers by RMC Press Conference Launch , 18 Jan 2016 (1) You will be arrested, remanded and charged in court under Customs Act 1967 (2) You will be arrested, remanded and charged in court under Anti-trafficking In Persons and Anti-smuggling of Migrants Act (ATIPSOM) 2007 (3) Munici
Slide 9: Company Review
BRITISH AMERICAN TOBACCO MALAYSIA Company Review
Slide 10: BAT recorded strong share gain of +0.9ppt in 2015
In 2015 BAT recorded strong share gain of +0.9ppt vs. previous year despite sharp decline in November after price increase Source: YTD DEC15 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) -0.7ppt +0.9ppt Share of Market – Malaysia (%)
Slide 11: Very strong Dunhill performance in a downtrading environment
Very strong Dunhill performance in a downtrading environment Facing headwinds after Nov. price increase Source: YTD DEC 15 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) -0.5ppt -0.1ppt GPI PI GPI Jan 2015 Aug 2015 Launch of DH Zest (Flavoured Jan – Mar’15: May – June’15: Launch o
Slide 12: Peter Stuyvesant recorded a gain of +1.3ppt FY2015
Peter Stuyvesant recorded a gain of +1.3ppt FY2015 vs. SPLY Currently at 6.4% SOM in the month of Dec’15 Source: YTD DEC 15 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) +1.3pt +1.1pt Nov’15: New Line Extension
Slide 13: Pall Mall remains stable FY2015 vs. SPLY
Pall Mall remains stable FY2015 vs. SPLY Decline noted in the recent months driven by menthol Source: YTD DEC15 Malaysia Retail Audit (Base: Total Legal Market – White + Kretek) -0.8ppt 0.0ppt June – Sept’14 Mar 2015 Introduction of reloc Launch of Pall Mall XL to Pall Mall SKUs. - Nationwide
Slide 14: 2015 Performance
BRITISH AMERICAN TOBACCO 2015 Performance
Slide 15: Q4 Discrete: Key Metrics
Q4 Discrete: Key Metrics Domestic & DF Volumes (mn stick) Contract Manufacturing Volumes (mn stick) Cigarette Semi Finished 1,798 -29.8% 1,968 -22.9% 1,033 1,517 1,235 1,095 Q4 2014 Q4 2015 Q4 2014 Q4 2015 Revenue (RM'mn) Profit from Operation (RM'mn) 1,206 -12.2% 1,058 274 269 +2.0% Q4 2014 Q4 2015
Slide 16: 2015 Full Year: Volume and Revenue
2015 Full Year: Volume and Revenue Domestic & DF Volumes (mn stick)) Contract Manufacturing Volumes (mn stick) Cigarette Semi Finished 9,018 8,188 -12.6% 6,104 7,159 -24.8% 5,142 4,544 FY'14 FY'15 FY'14 FY'15 Revenue (RM'mn) Net Turnover (RM'mn) 4,796 -4.5% 4,582 -4.1% 2,627 2,518 FY'14 FY'15 FY'14
Slide 17: 2015 Full Year: Key Metrics
2015 Full Year: Key Metrics Gross Profit (RM'mn) Operating Expenses (RM'mn) 1,712 -2.2% 1,674 481 -8.7% 439 FY'14 FY'15 FY'14 FY'15 Profit from Operation (RM'mn) Earning per Share (Sen/share) +0.5% 1,240 +0.9% 319 1,234 316 FY'14 FY'15 FY'14 FY'15
Slide 18: Dividend per share and payout 2013-2015
2013 2014 2015 RM 2.82 RM 3.09 RM 3.12 97.8% Payout 97.8% Payout 98.0% Payout
Slide 19: Other Highlights
Other Highlights OBACCO
Slide 20: Malaysia HR Awards in partnership with JobStreet.com
Malaysia HR Awards in partnership with JobStreet.com • BAT Malaysia was recognised for its sustained and continuous commitment for the development of its human talents by the Malaysia HR Awards in partnership with JobStreet.com during an award ceremony held on October 29, 2015. • From the 6 award ca
Slide 21: ACCA Malaysian Sustainability Reporting Awards 2015
ACCA Malaysian Sustainability Reporting Awards 2015 • On 1st December, BAT Malaysia was recognised at the ACCA Malaysia Sustainability Reporting Awards (MaSRA) 2015 for being one of the top 20 organisations shortlisted for their ‘Reporting within An Annual Report.
Slide 22: Building Trust Awards by PwC 2015
Building Trust Awards by PwC 2015 • A first in Malaysia, the Building Trust Awards assessed how Malaysian companies performed in their corporate reporting (via their annual reports) as well as how they are perceived in the eyes of their investors and customers. Where annual reports explain an organi
Slide 23: MSWG-ASEAN Corporate Transparency Index 2015
MSWG-ASEAN Corporate Transparency Index, Findings and Recognition 2015 – The Malaysian Chapter. • On 10th December, British American Tobacco Malaysia was recognised for its best corporate governance practices and was awarded the Winner of CG Awards 2015 for Industry Excellence in the Consumer Servic
Slide 24: Thank You
TOBACCO THANK YOU
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