British American Tobacco Kenya PLC · NSEKE:BAT
British American Tobacco Kenya — H1 2020 Earnings Presentation
16 slides from British American Tobacco Kenya's earnings presentation, Jul 16, 2020
Slide 1: 2020 HY Results Investor Brief
2020 HY Results Investor Brief 16 July 2020 Beverley Spencer-Obatoyinbo MANAGING DIRECTOR RESILIENT PERFORMANCE IN A CHALLENGING ENVIRONMENT
Slide 2: Disclaimer
DISCLAIMER “The material in this presentation is provided for the purpose of giving information about us to shareholders and is not provided for tobacco product advertising, promotional or marketing purposes. This material does not constitute and should not be construed as constituting an offer to s
Slide 3: Agenda
Agenda 1. BAT’s Evolved Corporate Strategy 2. Operating Environment 3. Performance Highlights 4. H2 Focus Areas
Slide 4: Our Evolved Strategy
OUR EVOLVED STRATEGY OUR MISSION MUST WIN OUR PURPOSE KEY STAKEHOLDER ETHOS OUTCOMES High Growth Segments & Bold Priority Markets Consumers Stimulating Fast the Senses HOW TO WIN Society Empowered of New Adult Inspirational Remarkable Foresights Innovation Generations Employees Powerful Connected Di
Slide 5: Operating Environment
Operating Environment BAT
Slide 6: A challenging environment worsened by COVID-19
A challenging environment worsened by COVID-19 Pre- Revised estimates Concerns over job security COVID 2020 GDP Growth 6.2% 2.3% 1.5% >30% of all jobs or incomes affected by COVID-19 To remain within target 2020 Inflation 5.7% range (2.5% - 7.5%) 6.0% 1.7mn Jobs lost during COVID-19 (estimate) Purch
Slide 7: With huge impact on consumption habits
With huge impact on consumption habits Reduced consumption, with some other categories being affected more …and consumers down trading Bought less or didn’t buy 6.2% 6.2% Groceries 23% 49% -19% of consumers have Premium Toiletries 24% reduced consumption of Reduction in ADC 38.1% cigarettes 48.1% Ni
Slide 8: Our focus areas during COVID-19 pandemic
Our focus areas during COVID-19 pandemic Keep our people safe, business continuity & recovery preparedness ▪ PPE, awareness, work from home ▪ Manufacture, local & export sales ▪ Readiness for post COVID-19
Slide 9: Supporting Government & communities
Supporting Government & communities Contribution to National Fund, sanitiser distribution & water projects ▪ Over KSh 10 mn contribution ▪ Distribution of sanitiser to ▪ Clean running water to over counties in partnership with 4,500 families in leaf areas Kenya Pipeline Company ▪ Provision of masks
Slide 10: Key business challenges beyond COVID-19
Key business challenges beyond COVID-19 01 02 03 Consumer Illicit trade Regulatory stretch overreach
Slide 11: Performance Highlights
Performance Highlights BAT
Slide 12: Resilient performance in a challenging environment
Resilient performance in a challenging environment Maintained profitability in H1’20 vs H1’19 despite COVID-19 impact* Cigarette volume Profit before tax: 3.7bn COVID-19 impact on +1.5% COVID-19 impact on revenue -16% distribution and mitigated by prudent cost affordability management Gross revenue:
Slide 13: Portfolio transformation progress despite COVID-19
Portfolio transformation progress despite COVID-19 COVID compliant execution delivers outstanding results EMBASSY TO DUNHILL SM TO ROTHMANS SPORTSMAN TO ROTHMANS Modernisation of premium icon Transformation for critical mass Migration of THE local hero for & credibility sustainability March May Augu
Slide 14: H2 Focus Areas
H2 Focus Areas BAT
Slide 15: Our key focus areas in H2
Our key focus areas in H2 1 Business continuity ✓ COVID-19 2 Win against illicit, recover volume & mix 3 Portfolio transformation ✓ The Great 4 Accelerate LYFT ✓ Factory launch migration ✓ Resolve BCP ✓ Drive recovery ‘Sportsman to regulatory ✓ Keep people of FMC challenges Rothmans’ safe
Slide 16: Thank you.
Thank you.
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