INTERIM RESULTS th July 2015

Transcription

1 29 th July 2015

2 Nicandro Durante Chief Executive

3 Financials Volume Current Revenue 6.4bn Profit 2.5bn Margin 39.2% EPS 100.2p Cigarettes 5.9% 2.4% 2.9% 322bn 6.0% flat 1.6% Constant 1.3% 0.4pp 3.9% Total Tobacco 334bn GDBs 142bn Total IBs 198bn 3.0% 6.0% 2.3% Underlying business is performing well

4 Financials Volume Current Revenue 6.4bn Profit 2.5bn Margin 39.2% EPS 100.2p Cigarettes 5.9% 2.4% 2.9% 322bn 6.0% flat 1.6% Constant 1.3% 0.4pp 3.9% Total Tobacco 334bn GDBs 142bn Total IBs 198bn 3.0% 6.0% 2.3% Underlying business is performing well

5 Ben Stevens Finance Director

6 Regional performance* Cigarette Volume Revenue Profit 11.0% 9.2% 5.3% AsPac Amr WE EEMEA Group AsPac 0.9% 2.6% 2.4% AsPac EEMEA 1.3% -0.7% -4.4% -1.7% -4.5% -2.9% -2.8% Amr WE EEMEA Group -2.6% Amr WE -4.6% Group FX impact +0.8% -13.2% -8.5% -13.9% -8.3% -0.6% -10.8% -8.7% -10.5% -7.3% As reported -2.0% -2.2% -7.6% -11.3% -5.9% -3.2% -1.6% -3.4% -15.1% -6.0% *At constant rates of exchange

7 Foreign exchange

8 Foreign exchange impacts Financials Current Constant Constant excl. transactional fx Revenue 10% 6% 3% 2% 3% 2% Profit 9% 6% 4% 1% 6% 5% Margin 0.3pp flat 0.5pp 0.4pp 1.1pp 1.2pp Good underlying performance masked by significant translational and transactional FX impact

9 Asia Pacific Regional Performance Financials Volume Constant Current Revenue 1,879m 2.8% 2.0% Cigarettes 103bn 0.7% Profit 781m 2.6% 3.2% GDBs 44bn 7.0%

10 Americas Regional Performance Financials Volume Constant Current Revenue 1,570m 11.0% 2.2% Cigarettes 60bn 4.4% Profit 690m 9.2% 1.6% GDB 18bn 5.6%

11 Western Europe Regional Performance Financials Volume Constant Revenue 1,597m 0.9% Current 7.6% Cigarettes 52bn 1.7% Total Tobacco 61bn 2.5% Profit 566m 5.3% 3.4% GDB 32bn 4.4%

12 EEMEA Regional Performance Financials Volume Constant Current Revenue 1,916m 2.6% 11.3% Cigarettes 107bn 4.5% Profit 662m 4.6% 15.1% GDB 49bn 6.3%

13 Operating margin H H Based on adjusted profit and current FX 0.5pp 0.2pp 1.6pp 1.6pp flat 44.7% 44.9% 41.5% 41.0% 39.2% 39.2% 37.2% 35.5% 35.6% 33.9% Asia Pacific Americas W Europe EEMEA Group

14 Drivers of adjusted EPS growth

15 Cash flow

16 Financing/Shareholder returns Net debt increased by 2.9bn to 13.9bn Invested $4.7bn to retain shareholding in enlarged Reynolds American Potential transactions with Souza Cruz and TDR in Croatia announced Moody s credit rating unchanged at A3 Fitch and S&P ratings remain unchanged at A- Interim dividend increases 4% (1/3 of 2014 FY dividend) Committed to increasing the final dividend despite FX impact on EPS

17 Nicandro Durante Chief Executive

18 Key highlights Good underlying performance

19 Key highlights Good underlying performance Strong GDB growth

20 Global Drive Brands Volume: 27 billion, up 2.4% Share up 0.2ppt Innovations account for over 80% of volumes Key driver of premium share growth Strong volume and share growth in Indonesia and Brazil

21 Global Drive Brands Volume: 27 billion, up 2.4% Share up 0.2ppt Innovations account for over 80% of volumes Key driver of premium share growth Strong volume and share growth in Indonesia and Brazil Volume: 30 billion, down 0.9% Share flat Impacted by market declines in Russia and Ukraine Growth in the Middle East and Turkey

22 Global Drive Brands Volume: 27 billion, up 2.4% Share up 0.2ppt Innovations account for over 80% of volumes Key driver of premium share growth Strong volume and share growth in Indonesia and Brazil Volume: 30 billion, down 0.9% Share flat Impacted by market declines in Russia and Ukraine Growth in the Middle East and Turkey Volume: 15 billion, up 2.9% Share up 0.1ppt Strong performance in WER and Mexico Innovations account for 36% of volume

23 Global Drive Brands Volume: 27 billion, up 2.4% Share up 0.2ppt Innovations account for over 80% of volumes Key driver of premium share growth Strong volume and share growth in Indonesia and Brazil Volume: 30 billion, down 0.9% Share flat Impacted by market declines in Russia and Ukraine Growth in the Middle East and Turkey Volume: 15 billion, up 2.9% Share up 0.1ppt Strong performance in WER and Mexico Innovations account for 36% of volume Volume: 47 billion, up 2.8% Share up 0.1ppt Strong performance across the Regions Record volume including Fine Cut Pall Mall Fine Cut No 1 brand in Western Europe

24 Global Drive Brands Volume: 27 billion, up 2.4% Share up 0.2ppt Innovations account for over 80% of volumes Key driver of premium share growh Strong volume and share growth Volume: in Indonesia 22 billion, up 36.6% and Brazil Share up 0.4ppt Volume: 15 billion, up 2.9% Share up 0.1ppt Strong performance in WER and Mexico Innovations account for 36% of volume Volume: 30 billion, down 0.9% Share flat in T40 Strong performance in EEMEA, Western Europe and Australia Impacted by market declines in Russia and Ukraine. Growth in the Middle East and Turkey Great momentum of slimmer innovations in Eastern Europe Volume: 47 billion, up 2.8% Share up 0.1ppt Strong performance across the Regions Record volume including Fine Cut Pall Mall Fine Cut No 1 brand in Western Europe

25 Key highlights Good underlying performance Strong GDB growth Margin maintained despite transactional FX impact

26 Key highlights Good underlying performance Strong GDB growth Margin maintained despite transactional FX impact NGP development continues

27 Key highlights Good underlying performance Strong GDB growth Margin maintained despite transactional FX impact NGP development continues M&A transactions on track

28 Summary Underlying business is performing well Excellent performance from the GDBs Pricing environment better than 2014 Significant currency headwinds continue Operating margin maintained Strong H1 comparator unwinds On track for another good year of earnings growth on a constant currency basis

29 29 th July 2015

30 SUPPLEMENTARY SLIDES 29 th July 2015

31 Cigarette volumes by region HY 2015 Region Billions % change Asia Pacific % Americas % Western Europe % Eastern Europe, Middle East and Africa % Group %

32 Cigarette volumes by region Q Region Billions % change Asia Pacific % Americas % Western Europe % Eastern Europe, Middle East and Africa % Group %

33 Revenue by region HY 2015 Region m % change Asia Pacific 1,893 1,932-2%. Americas 1,384 1,415-2% Western Europe 1,463 1,583-8% Eastern Europe, Middle East and Africa 1,658 1,868-11% Group 6,398 6,798-6% All numbers as reported

34 Adjusted profit from operations HY 2015 Region m % change Asia Pacific % Americas % Western Europe % Eastern Europe, Middle East and Africa % Group 2,507 2,665-6% All numbers as reported

35 Foreign currencies Average Closing Australian dollar Brazilian real Canadian dollar Euro Indian rupee Japanese yen Russian rouble South African rand US dollar