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Interim management statement for the nine months ended 30 september 2013
British American Tobacco p.l.c.
Incorporated in England and Wales
(Registration number: 03407696)
Short name: BATS
Share code: BTI
ISIN number: GB0002875804
("British American Tobacco p.l.c." or "the Company")
BRITISH AMERICAN TOBACCO p.l.c.
INTERIM MANAGEMENT STATEMENT FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013
GOOD UNDERLYING PERFORMANCE CONTINUED
- Good revenue growth of 3.5% at constant rates of exchange
- Revenue growth of 0.7% at current rates of exchange
- Cigarette volume from subsidiaries decreased by 3.2% to 501 billion
- Total tobacco volume was down by 3.0%
- Global Drive Brand cigarette volume grew by 1.9%
Nicandro Durante, Chief Executive, commented: “The Group continued its good performance against a
backdrop of adverse exchange rate movements, lower industry volume and instability in some parts of the
world. We have grown revenue and market share, our pricing momentum remains strong and our Global Drive
Brands continue to perform well. During the period, the Group launched its first next generation product,
Vype, and early signs are encouraging. We remain on track for a year of solid earnings growth.”
SUMMARY OF PERFORMANCE
Trading update
British American Tobacco performed well in the nine months to the end of September 2013 with continued
growth in revenue, market share and the Global Drive Brands. The Group’s reported results were adversely
impacted by exchange rate movements. Volume was lower than last year as a result of industry volume
declines, excise-driven trade inventory movements in Brazil and the leap year comparator.
Group revenue for the nine months, at constant rates of exchange, grew by 3.5%, driven by strong pricing. At
current exchange rates, revenue grew by 0.7%, as movements in some of the Group’s key trading currencies
continued to adversely impact reported revenues.
Cigarette volume from subsidiaries was 501 billion, down by 3.2%, with underlying cigarette volume declining
2.4%. Growth in many markets, including Bangladesh, Pakistan, Vietnam, the Middle East and the Philippines,
was more than offset by lower volumes in Brazil, Russia, Turkey, Ukraine, Egypt and Western Europe.
Global Drive Brands’ cigarette volume was up by 1.9%, with their market share growing strongly in the Group’s
Top 40 markets. Dunhill volume increased by 9.6%, with good growth in Indonesia, South Korea and the GCC.
Kent was 4.0% lower, driven by market declines in Russia, Romania and Ukraine. Lucky Strike volume was
down by 5.3%, with increases in the Philippines, Brazil and Poland, more than offset by market declines in
Spain and lower volume in the Middle East. Pall Mall was up by 5.2%, largely as a result of growth in Pakistan,
Romania, Chile and Argentina, partially offset by declines in Russia, Uzbekistan, Germany and Spain.
Other tobacco products performed well, with Fine Cut tobacco growing, driven by a 3.3% increase in Western
Europe. Pall Mall, the biggest Fine Cut brand in Western Europe, was up by 10.7% with growth in Belgium,
Spain, France, Italy and Germany. Total tobacco volume (including cigarettes) was 3.0% lower at 521 billion.
Trading environment
Despite industry volume declining and difficult trading conditions persisting in some parts of the world, the
pricing environment remains strong. Exchange rate movements are adversely affecting the reported results.
Cigarette volumes
The segmental analysis of the volumes of subsidiaries was as follows:
9 months to 9 months to Year to
30.09.13 30.09.12 31.12.12
bns bns bns
Asia-Pacific 149 141 188
Americas 97 104 142
Western Europe 87 95 129
EEMEA 168 177 235
501 517 694
Total tobacco volumes 521 537 722
SHARE BUY-BACK PROGRAMME
The Group resumed an on-market share buy-back programme from the end of February 2013. During the nine
months to 30 September 2013, 31.4 million shares were bought at a cost of £1,095.9 million, excluding
transaction costs.
FINANCIAL POSITION
The Group has sufficient financing and facilities available for the foreseeable future.
The changes in the financing arrangements of the Group since the beginning of the financial year were the
issue in March of a new €650 million bond with a maturity of 2025, a new US$300 million bond with a maturity
of 2016 and a new £650 million bond with a maturity of 2026. These issues were in anticipation of the
repayment in July 2013 of a €519 million bond and the repayment in November and December 2013 of a
US$300 million and a £152 million bond respectively.
There have been no material events, transactions or changes in the financial position of the Group since the
year end, other than as outlined in this statement. Further, the Board is not aware of any material events,
transactions or changes in the financial position of the Group which have occurred up to and including
22 October 2013, being the latest practicable date before the date of the publication of this Interim
Management Statement.
On behalf of the Board
Nicola Snook
Secretary
22 October 2013
NOTES AND ADDITIONAL INFORMATION
British American Tobacco is the world's second largest quoted tobacco group by global market share, with
brands sold in more than 180 markets. We have four Global Drive Brands – Dunhill, Kent, Lucky Strike and Pall
Mall - and over 300 brands in our portfolio. We hold robust market positions in each of our regions and have
leadership positions in more than 50 markets.
Disclaimers
This Interim Management Statement (IMS) relates to the nine months ended 30 September 2013 and contains
information that covers the nine months and the period since the third quarter end to 22 October 2013, being
the latest practicable date before the date of the publication of this IMS.
This announcement does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or
dispose of any British American Tobacco p.l.c. shares or other securities.
This IMS contains certain forward looking statements which are subject to risk factors associated with, among
other things, the economic and business circumstances occurring from time to time in the countries and
markets in which the Group operates. It is believed that the expectations reflected in this announcement are
reasonable but they may be affected by a wide range of variables which could cause actual results to differ
materially from those currently anticipated.
Past performance is no guide to future performance and persons needing advice should consult an
independent financial adviser.
Distribution of this Interim Management Statement (IMS)
The IMS is released to the London Stock Exchange and the JSE Limited. It may be viewed and downloaded from
our website, www.bat.com
Copies of the IMS may also be obtained during normal business hours from: (1) the Company’s registered
office; (2) the Company’s representative office in South Africa; and (3) British American Tobacco Publications,
details of which are given below.
FINANCIAL CALENDAR 2014
27 February Preliminary Statement
30 April Annual General Meeting and Interim Management Statement
30 July Half-Yearly Report
22 October Interim Management Statement
CORPORATE INFORMATION
Premium listing
London Stock Exchange (Share Code: BATS; ISIN: GB0002875804)
Computershare Investor Services PLC
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Secondary listing
JSE (Share Code: BTI)
Shares are traded in electronic form only and transactions settled electronically through Strate.
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PO Box 61051, Marshalltown 2107, South Africa
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American Depositary Receipts (ADRs)
NYSE MKT (Symbol: BTI; CUSIP Number: 110448107)
Sponsored ADR programme; each ADR represents two ordinary shares of British American Tobacco p.l.c.
Citibank Shareholder Services
PO Box 43077
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tel: 1-888-985-2055 (toll-free) or +1 781 575 4555
e-mail enquiries: citibank@shareholders-online.com
website: www.citi.com/dr
Publications
British American Tobacco Publications
Unit 80, London Industrial Park, Roding Road, London E6 6LS, UK
tel: +44 (0)20 7511 7797; facsimile: +44 (0)20 7540 4326
e-mail enquiries: bat@team365.co.uk or
Computershare Investor Services (Pty) Ltd in South Africa using the contact details shown above.
British American Tobacco p.l.c.
Registered office
Globe House
4 Temple Place
London
WC2R 2PG
tel: +44 (0)20 7845 1000
British American Tobacco p.l.c. is a public limited company which is listed on the London Stock
Exchange and the JSE Limited in South Africa. British American Tobacco p.l.c. is incorporated in
England and Wales (No.3407696) and domiciled in the UK.
British American Tobacco p.l.c.
Representative office in South Africa
34 Alexander Street
Stellenbosch
7600
South Africa
(PO Box 631, Cape Town 8000, South Africa)
tel: +27 (0)21 888 3722
ENQUIRIES:
INVESTOR RELATIONS: PRESS OFFICE:
Mike Nightingale 020 7845 1180 Will Hill/Annie Brown 020 7845 2888
Rachael Brierley 020 7845 1519
23 October 2013
Sponsor: UBS South Africa (Pty) Ltd
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