BUILDING
A BETTER
TOMORROWTM
Annual Report 2021
1
BAT Malaysia is the largest and leading tobacco company in the country.
2
Years of History in Malaysia
100+
3
The Group’s purpose is to build A Better TomorrowTM by reducing the health impact of its business.
4
Sustainability is at the front and centre of everything we do.
5
7
57.7%
illicit cigarette incidence in 2021.
Government revenue impacted by
RM5 billion.
Contributed
RM1.8 billion
in tax revenue to Malaysia.
8
BAT has scientifically substantiated reduced risk products that can contribute to Tobacco Harm Reduction.
Committed To Building A Better TomorrowTM
Our Purpose
To build A Better TomorrowTM for all our stakeholders.
Our Commitment
To reduce the health impact of our business through a multi-category portfolio of products including reduced-risk tobacco and nicotine products.*
*Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.
At a Glance
Revenue
RM2,637Million
Profit Before Tax
RM394Million
Net Profit
RM285Million
Net Dividend Per Share
98Sen
Shareholder’s Fund
RM383Million
Net Returns on Shareholder’s Fund
74%
Awards and
Achievements
Achievements
At a Glance
Message to Shareholders Stakeholders
Message to Shareholders and Stakeholders
Once again, BAT Malaysia performed remarkably despite a difficult environment. 2021 saw our volume grow for the first time since 2002 and profit grow for the first time since 2015. We truly are building A Better TomorrowTM.
Tan Sri Dato ’ Seri (Dr.) Aseh Bin Haji Che Mat
Chairman
Nedal Salem
Managing Director
Message to Shareholders and Stakeholders
Management Discussion and Analysis
BAT Malaysia will continue growing its revenue through combustibles. This will enable us to allocate sufficient investments to develop New Category products that will fulfil our aim of providing greater choice and less risky products to reduce harm to our consumers.
Management Discussion and Analysis
Financial Highlights
Gross Revenue
(RM million)
+14%
2020
2,315
2021
2,637
Operating Expenses
(RM million)
+5%
2020
252
2021
264
Profit From Operations
(RM million)
+19%
2020
346
2021
411
Quarterly
Five-year Performance History
Return On Equity
Net Total Dividend Per Share (Sen)
Our Approach to Sustainability
BAT Malaysia’s purpose is to build A Better Tomorrow™. We are doing this by placing sustainability at the front and centre of everything that we do.
-
MISSION
Build A Better TomorrowTM through a strategy that:- Reduces the health impact of our business
- Champions environmental, social and governance excellence
-
GOALS
Best-in-classwithin BAT p.l.c. Group
Leadingconsumer product and services company referencing Bursa Malaysia FTSE Russell ESG Ratings
Recognisedfor sustainability initiatives
Building A Better TomorrowTM:
Our Focus Areas
-
Harm ReductionBuilding A Better Tomorrow™ by reducing the health impact of our business and offering less risky products for our consumers. BAT Malaysia supports the Government’s legalisation of nicotine vapour products and the establishment of scientifically-based regulations for this category by:- providing consumers with less risky alternatives
- harnessing world leading research
- raising industry standards for nicotine vapour products within a regulated marketplace
- supporting the establishment of appropriate regulations for reduced-risk* products such as nicotine vapour
* Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive. -
EnvironmentBuilding A Better Tomorrow™ through executing excellence in environmental management by targeting to:- increase the amount of renewable energy we source to 30%
- achieve carbon neutrality across Scopes 1 & 2
- reduce waste generated by 15%
- recycle at least 95% of the waste generated
- ensure zero waste to landfill from the operation sites
- eliminate unnecessary Single-Use packaging
Note: BAT Malaysia aims to achieve the targets for Social and Environment by 2025. -
SocialBuilding A Better Tomorrow™ to deliver a positive social impact by targeting to:- execute high value and high impact community social investment programmes
- attract and retain an increasingly diverse workforce and providing a welcoming, inclusive working environment
- focus on providing a fair and inclusive workplace to our people
- focus on driving ownership and accountability, building diverse talent pipelines and creating enablers
Note: BAT Malaysia aims to achieve the targets for Social and Environment by 2025. -
GovernanceBuilding A Better Tomorrow™ through observing robust corporate governance by:- ensuring business objectives are achieved in a responsible and ethical manner in accordance with high standards of integrity, transparency and accountability
- ensuring compliance with local laws, governance best practices and internal policies
- aligning our strategies with the UN Sustainable Development Goals and key elements of the 12th Malaysia Plan
- benchmarking our ESG performance against the Bursa Malaysia FTSE Russell ESG Ratings
Annual
Report 2021
Report 2021
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61st Annual General Meeting
Meeting Platform
TIIH Online
Broadcast Venue
Infinity Room, Level 16 , Guoco Tower, Damansara City, No. 6, Jalan Damanlela, Bukit Damansara, 50490 Kuala Lumpur
Date & Time
Wednesday
27 April 2022
9.30 a.m.
