Financial Analyst Presentation - British American Tobacco Malaysia

British American Tobacco
(Malaysia) Berhad
1st Quarter 2010 Results
Analyst Presentation
22 April 2010
Agenda
Industry Review
Market Share and Volumes
BATM’s Activities
Quarter 1, 2010 Results
Other Highlights
Future Prospects
INDUSTRY REVIEW,
MARKET SHARE
AND VOLUMES
Industry volumes flat
5
Industry volumes (CMTM members)
2009
2010
(bn sticks)
4
3
2
1
0
Qtr 1
Shipment volume
Qtr 2
Qtr 3
Qtr 4
Variance
Q1 10
Q1 09
BAT
2.25
2.32
(0.07)
Industry (CMTM members)
3.49
3.48
0.01
ELPC (estimate)
0.30
0.29
0.01
(bn sticks)
Note: ELPC volumes extrapolated from RA share (rebased)
10 vs 09
Source: Confederation of Malaysian Tobacco Manufacturers (CMTM)
BAT & GDB Share
Share of Market (%)
65
61.0
59.6
60.0
54.5
54.9
60.0
59.6
60.3
BAT Premium 14s
Price Increase 2nd 14s Price
Increase
59.9
59.5
59.3
59.0
54.7
54.4
60
55
52.0
0.4
0.4
7.9
7.9
2.8
2.8
54.5
54.3
0.4
0.4
7.9
7.3
2.6
2.7
0.5
50
55.1
0.4
7.4
55.0
0.4
7.4
0.4
0.4
7.7
8.1
General Price
Increase
58.6
58.9
59.5
54.0
53.5
53.8
54.3
0.4
0.4
0.4
0.4
7.9
8.0
7.8
9.0
60.4
60.4
60.2
59.9
55.4
55.3
55.1
54.7
0.4
0.4
0.4
0.4
8.0
7.9
7.9
8.0
2.9
2.8
2.8
2.8
8.4
45
2.7
2.8
2.7
2.7
1.3
2.7
2.9
2.9
2.8
40
35
41.8
43.5
43.7
43.5
43.9
44.6
2009
YTD
2010
Jan09
Feb
Mar
44.4
43.9
43.2
41.9
42.3
42.5
43.3
44.1
44.2
44.0
43.5
Apr
May
Jun09
Jul
Aug
Sep
Oct
Nov
Dec
Jan10
Feb
30
2008
Dunhill
Kent
Pall Mall
Lucky Strike
BAT
Source: Malaysia Retail Audit (rebased)
BAT share remains resilient, led by Global Drive Brands!
GDBs
Market remains Premium-skewed
YTD Feb 2009
YTD Feb 2010
Sub-VFM
VFM 8%
Sub-VFM
VFM 8%
21%
22%
PREMIUM
70%
PREMIUM
71%
BAT
%
BAT
%
Share of Premium
73.0
Share of Premium
74.0
Share of Value for Money
37.1
Share of Value for Money
36.5
Share of sub-VFM
0
Share of sub-VFM
0
Source: Nielsen Retail Audit (rebased)
BRAND ACTIVITIES
AND PERFORMANCE
The New DUNHILL Pack update
20s
14s with panel pack only
20s with resealable
RELOC
Produk ini mengandungi lebih 4,000 bahan kimia termasuk tar, nikotina dan karbon monoksida
yang membahayakan kesihatan.
Dunhill remains resilient
1000
800
42
40
600
38
400
36
34
200
32
0
30
Jan
Feb
Mar
Apr
May
2009
Jun
2010
Note: RA figures are on a month by month basis
• YTD market share at 43.7pp (flat vs SPLY)
Jul
Aug
2009 RA
Sep
Oct
Nov
Dec
2010 RA
Source: Nielsen Retail Audit (rebased)
Retail Audit Share (%)
12 Mths Moving Average Volume
(Mns)
44
Dunhill 14’s and 20’s split
BAT Premium 14s
Price Increase
Dunhill Reloc
launch
2nd 14s Price
Increase
35
50
45
Retail Audit (%)
30
40
35
25
30
20
25
20
15
15
10
10
Jan
09
Feb
Mar
Apr
May
Jun
14's RA share
Jul
Aug
Sep
20's RA share
Note: RA figures are on a month by month basis
• YTD market share at 43.7pp (flat vs SPLY)
Oct
Nov
Dec
Jan
10
Feb
Total RA share
Source: Nielsen Retail Audit (rebased)
Pall Mall’s new Superior Blend for Red & Blue
Pall Mall’s new Superior Blend for Red & Blue
Produk ini mengandungi lebih 4,000 bahan kimia termasuk tar, nikotina dan karbon monoksida
yang membahayakan kesihatan.
Pall Mall market share improves
10
9
120
8
7
100
6
80
5
60
4
3
40
Retail Audit Share (%)
12 Mths Moving Average Volume (Mns)
140
2
20
1
0
Jan
Feb
Mar
Apr
2009
May
Jun
2010
Jul
2009 RA
Aug
Sep
Oct
Nov
Dec
2010 RA
Note: RA figures are on a month by month basis
YTD Pall Mall market share at 7.9% (+0.3 pp vs. SPLY)
Source: Nielsen Retail Audit (rebased)
60
3.5
50
3.0
2.5
40
2.0
30
1.5
20
1.0
10
0.5
0
12 Mths Retail Audit Share (%)
12 Mths Moving Average Volume (Mns)
Kent stable performance
Jan
Feb
Mar
Apr
May
2009
Jun
2010
Jul
Aug
2010 RA
Note: RA figures are on a month by month basis
Kent YTD market share at 2.8pp (+0.2 vs SPLY)
Sep
Oct
Nov
Dec
2009 RA
Source: Nielsen Retail Audit (rebased)
FINANCIAL
HIGHLIGHTS
1st Quarter 2010 vs 1st Quarter 2009
Productivity Savings
50
44.8
45
38.6
40
2.7
35
39.8
1.6
41.5
6.7
4.5
3.3
3.9
RM million
8.2
30
12.9
23.4
25
20
3.4
15.4
36.5
32.6
15
4.9
10
28.8
16.6
23.0
0.1
0.8
7.0
5
0
9.1
8.3
3.5
3.4
2004
2005
2006
Supply Chain
2007
Indirects
2008
Overheads
2009
Q1 2010
OTHER
HIGHLIGHTS
Other Highlights
Annual Report 2009
• BAT Malaysia Annual Report 2009 is now available. Also
available for download from: www.batmalaysia.com
Earth Hour 2010
• BAT Malaysia and its employees participated in Earth Hour
on 27th March 2010 (8.30pm to 9.30pm)
- Lights out in Virginia Park and Virginia Park West
- 325 employees pledged to support and observe Earth Hour
8:20pm
8:30pm
Other Highlights
Actively contributing to the community and the environment:
Employee Volunteer Programme
• Our employees spend a day out with
orphans of House of Joy, Puchong
during CNY
• Our employees brought smiles to the
elderly of Joy Garden at a CNY lunch
treat in Semenyih
Tree-planting biodiversity programme in Cameron Highlands
• Our employees spent two days in Cameron Highlands to learn more
about biodiversity and engage in a tree planting activity
Other Highlights
Eradicating Poverty by 2010
• BAT Malaysia Foundation and Lembaga Kemajuan Kelantan Selatan
(KESEDAR) collaborated to help alleviate hardcore poverty by building
15 homes for the hardcore poor in Gua Musang, Kelantan.
- Groundbreaking ceremony on
25 February 2010.
• BAT Malaysia contributed to the repairing of 20 dilapidated homes in
Larut, Perak.
-
Completed in January 2010
FUTURE
PROSPECTS
Future Prospects
High levels of illicit trade continue to put pressure on the
industry
Implementation of regulation prohibiting packs less than 20
sticks will reduce margins
Moderate and gradual excise increase vital to address illicit
trade
Group remains committed to enhancing its leadership position.
Thank You