British American Tobacco P.l.c. · LSE:BATS
British American Tobacco P.l.c — Investor Presentation (September 2019)
17 slides from British American Tobacco P.l.c's investor presentation, Sep 12, 2019
Slide 1: Sell Side Presentation
Sell Side Presentation 12 September 2019 Jack Bowles Chief Executive Tadeu Marroco Finance Director
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 15 March 2019 and Current Reports on Form 6
Slide 4: Delivering a stronger, simpler, faster organisation
Delivering a stronger, simpler, faster organisation COMBUSTIBLE VALUE GROWTH STEP-CHANGE IN NEW CATEGORIES SIMPLIFY THE COMPANY
Slide 5: Quantum | Simplifying the Company
Quantum | Simplifying the Company COMBUSTIBLE VALUE STEP-CHANGE SIMPLIFY THE GROWTH IN NEW CATEGORIES COMPANY Quantum is about growth Deliver simplification & Release funds to invest in New Categories
Slide 6: Quantum | Building a stronger simpler faster organisation
Quantum | Building a stronger simpler faster organisation Objectives Actions Change ways of working • Faster, more agile • Reduce management layers - Reporting • Streamline Global Business organisation Business Units - 28 to 18 Processes • Increased accountability • Regional Support teams costs -50%
Slide 7: Sell Side Presentation
Sell Side Presentation Tadeu Marroco Finance Director
Slide 8: Strong H1 results
Strong H1 results Adjusted Volume Adjusted Profit from Adjusted Revenue Operations Diluted EPS -3.5% +4.1%* +5.9%* +7.1%* Strategic Strategic Group Group brand market share value share brand market value share share Flat +10bps +60bps +50bps *Adjusted and constant rate basis. See Appendix A3 for sha
Slide 9: Consumer insights drive portfolio approach
Consumer insights drive portfolio approach › Evidence of poly-usage across categories supports BAT’s portfolio approach › New consumption moments › Regulation drives different market environments › Variable cross category marketing freedoms
Slide 10: Vapour | Strong progress in key markets
Vapour | Strong progress in key markets ePen3 reached 10% Value share in Aug; surpassed JUUL › Good results on $0.99 promo and 2.4% launch Vype is the market leader and growing: 16.3% Value share (Doubled in 9 months) 4x Alto Device Sales (vs. pre-promotion)1 Vype accounts for > 50% of the closed va
Slide 11: THP | Strong push in October in Japan and building momentum in Russia
THP | Strong push in October in Japan and building momentum in Russia Japan accounts for 2/3 of global industry THP volumes › Glo starting to build momentum in Russia 5x Offtake Volume Jul vs. Jan +40 bps Closing in on 1% Share in Moscow* *Source: Nielsen share of shop handling in Moscow BAT share o
Slide 12: Modern Oral | Fastest growing Modern Oral company in USA
Modern Oral| Fastest growing Modern Oral company in USA; leadership in the rest of the world 9.1% 38% Double digit share in 14 states! VELO Share Share in New Jersey #1 Brand 25% In total oral within 4 months of Modern oral with 31% volume share in 8 weeks 23% Share in Washington Source: Nielsen sha
Slide 13: Combustibles | Strong performance fuelling growth
Combustibles| Strong performance fuelling growth Value Share Growth Strong H1 Pricing Delivered Winning in Strategic Segments 28.60 28.50 +10bps 22.80 28.5 22.60 +7.0% 83 % Of switchers & trialists accounted for by Strategic Segments CAPSULES +50bps Cig Price mix 28.40 22.40 28.30 22.3 22.20 28.20 2
Slide 14: Delivering on our financial objectives
Delivering on our financial objectives 2019 Guidance H2 priorities Revenue +3-5% * Mid-Upper › Deliver Quantum and release additional New Category Revenue +30-50%* resources Operating Margin +50-100 bps › Drive value growth from combustibles Profit From Operations +5-7%* › Deliver New category growt
Slide 15: On track for a good year
On track for a good year COMBUSTIBLE VALUE › On track for the full year guidance GROWTH › New Category revenue expected around the middle of 30-50% range STEP-CHANGE IN NEW CATEGORIES › Building a stronger, simpler, faster organisation SIMPLIFY THE › Delivering high single figure EPS COMPANY growth
Slide 16: Sell Side Presentation
Sell Side Presentation Jack Bowles Chief Executive Tadeu Marroco Finance Director
Slide 17: Appendix
Appendix A1: Adjusting (Adj.) Adjusting items are significant items of certain financial measures which individually or, if of a similar type, in aggregate, are relevant to an understanding of the Group’s underlying financial performance because of their size, nature or incidence. In identifying and
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