British American Tobacco Malaysia Bhd. · MYX:BAT
British American Tobacco Malaysia Bhd — H1 2024 Earnings Presentation
13 slides from British American Tobacco Malaysia Bhd's earnings presentation, Jul 26, 2024
Slide 1: H1'24 Analyst Briefing
H1‘24 Analyst Briefing BAT Malaysia 26th July 2024
Slide 2: MALAYSIA (“BATM” ) . ALL RIGHTS RESERVED. (COLLECTIVE LY, THE “BAT GROUP”). THE BAT
COPYRIGHT LOCAL LEGISLATION / REGULATIONS / IN ADDITION , THESE COMMENTS ARE NOT TRADEMARKS ACU / ACO: NECESSARILY A REPRESENTATIVE SAMPLE © 2024 BRITISH AMERICAN TOBACCO ACU AND ACO ARE ACRONYMS FOR ADULT OF ALL COMMENTS MADE, NOR MAY ANY MALAYSIA (“BATM” ) . ALL RIGHTS RESERVED. THE MATERIALS CONT
Slide 3: 2024 BATM Strategy
2024 BATM Strategy A Better Tomorrow Building a Switch Smokeless to Better World Quality Sustainable Dynamic Growth Future Business Our Values
Slide 4: Market Context
Market Context Inflationary pressures Vape market remains impacting consumer spend highly fragmented 100+ 1500+ Higher CPI Diesel subsidy removal Low consumer sentiment Brands SKUs Vs 2023 Illicit stabilizing & backflow Vape specialty still primary shifting to Vapour and BWAP purchase channel 45% 10
Slide 5: Illicit vs Legal
Illicit vs Legal Illicit Incidence trending downwards Legal Industry Volume (mns) 568 594 588 599 575 535 2020 2021 2022 2023 Q2'23 Q2'24 Source: CMTM Industry Exchange Source: Nielsen Illegal Cigarettes Study Despite the decline in Illicit incidences, legal volume continues to be under pressure
Slide 6: H1 '24 Business Performance
H1 ‘24 Business Performance 54.8% -3.0% -5.3% -0.4% -0.5ppt vs Q2’ 23 vs. H1 ’23 vs. H1 ’23 vs. H1 ’23 Prem -0.9% | VFM +1.1% Illegal Legal Domestic Total Share of Incidence Volume BAT Volume Market Industry BAT Downtrading trend continues | BAT Premium SoM under pressure Source: Illegal Cigarettes
Slide 7: Q2 '24 Business Performance – BAT SoM (vs Q1'24)
Q2 ‘24 Business Performance – BAT SoM (vs Q1’24) BAT Retail Audit Share of Market (%) Q2’ 24 vs Q1’ 24 52.4 +0.1ppt 51.7 51.6 51.1 50.9 +0.1ppt 50.6 50.7 -0.2ppt 2019 2020 2021 2022 2023 Q1 2024 Q2 2024 Dunhill Peter Stuyvesant Luckies Premium Share of Segment AP Share of Segment VFM Share of Segmen
Slide 8: Vapour H1 Performance
Vapour H1 Performance PORTFOLIO IMPROVED CONVERSION Flavour Rotation Q1’24 Vs Q4’23 AWARENESS 39% +1pp 50% ORANGE FUSION PASSIONFRUIT ICE TRIAL 19% +2pp 29% RCS segment is available in July ACTIVE USAGE 5% +1pp Source: Kantar IT Q1’24 (vs Q4’23)
Slide 9: ESG updates
ESG updates Beyond Benih 61% ↓ Scope 1 & 2 Emission* 12 Farm Gardens 83% Waste Recycling* ~80K Beneficiaries 62% ↓ Water Withdrawal* *As of 31 May ’24 vs baseline Selection 10 new communities for Carbon Neutral 2024 ongoing AWS Certified Year 03 Employee Volunteer Event World Environment Day Awarene
Slide 10: H1 '24 Financial Performance – Highlights
H1 ’24 Financial Performance – Highlights -5.3% vs H1 ‘23 FMC Volume -1.5% -22.3% vs H1 ‘23 vs H1 ‘23 Revenue Operating Profit >100% vs H1 ‘23 NC Volume Decrease in revenue resulting from lower volume and downtrading trends Investment in NC impacting operating profit
Slide 11: GP Margin Evolution: 2022 to 2024
GP Margin Evolution: 2022 to 2024 26% 27% 26% 26% 23% 24% 22% 21% Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 M U L T I C A T E G O R Y VUSE LAUNCH COMBUSTIBLES THP CITY LAUNCH Lower GP margin due to FMC downtrading and NC
Slide 12: Q2'24 Dividend Proposal
Q2’24 Dividend Proposal Q2 ‘24 Q2’23 Var Dividend for Board’s Approval Total BAT Volume (bn sticks) 0.89 0.97 -8% 12 sen per ordinary share RM34.3mn, payable on 22 August 2024 Revenue (RM mn) 640 678 -6% Dividend Yield 7%* Operating Profit (RM mn) 56 73 -23% Profit after tax Share Price (RM) (RM mn)
Slide 13: Building A Better Tomorrow
Building A Better Tomorrow 1 Combustible Value Growth Sustainability 2 Step-Change in New Categories Accelerating Tomorrow’s Leaders 3 A Simpler & Smarter Company
British American Tobacco Malaysia — H1 2024 Earnings Presentation on 6ix