Tomorrowtm and the Progress the Group Has Made Towards Becoming a Consumer-Centric, Multi-Category Company with a Focus on Moving Beyond Combustible Tobacco

Tomorrowtm and the Progress the Group Has Made Towards Becoming a Consumer-Centric, Multi-Category Company with a Focus on Moving Beyond Combustible Tobacco

Our purpose is to build a better tomorrow by reducing the health impact of our business A BETTER TOMORROW TM 2 BRITISH AMERICAN TOBACCO (MALAYSIA) BERHAD Annual Report 2020 Disclaimer: Pages 3 - 7 highlights British American Tobacco p.l.c.’s journey to A Better TomorrowTM and the progress the Group has made towards becoming a consumer-centric, multi-category company with a focus on moving beyond combustible tobacco. Purpose At BAT we are proud of the journey we are on to transform our business. Our ambition is to accelerate this transformation through our range of alternative choices for adult consumers, which are already being used by millions of people worldwide. Our goal is to continue to focus on our societal responsibilities and reduce the health impact of our business as we look to grow this number to 50 million by 2030. These bold business objectives drive us everyday to continue building A Better Tomorrow™. Sustainable At BAT we are proud to be a global leader in sustainability. But don’t take our word for it. For the 19th consecutive year, we have been included in the Dow Jones Sustainability Indices (DJSI) – the gold standard of tracking an organisation’s environmental, social and governance practices. We are the only company in our industry to feature in the DJSI World Index; the top 10% of global ESG leaders. This recognition inspires us to keep accelerating towards building A Better Tomorrow™. Explore how Industry leadership in the Dow Jones Sustainability Indices reflects our commitment to sustainability. Science At BAT we are proud of our work in science and innovation which is fundamental to our business. But don’t take our word for it. Our unique plant-based technology has been used to develop a COVID-19 and seasonal flu candidate vaccine. Both have progressed into Phase 1 first-time in human trials, following approval by the FDA of the Investigational New Drug application. We have more than 1,500 R&D specialists, including global leaders in the field of plant genomics and bioinformatics, across our research facilities in the UK and USA. This scientific progress inspires us to keep accelerating towards building A Better Tomorrow™. Explore more about our extensive scientific research programme, covering a broad spectrum of scientific fields including molecular biology, toxicology and chemistry. Progress At BAT we are proud of the progress we are making on the journey to transform our business. We are committed to achieving our goal of £5billion revenue from our new categories by 2025. As we are to tracking and sharing our progress. We continue to focus on delivering strong returns for our shareholders, ensuring a progressive environment for our more than 50,000 global employees and addressing our impact on society as a whole. These ambitions inspire us to keep accelerating towards building A Better Tomorrow™. Diversity At BAT we are proud to be building a modern organisation for all of our 50,000+ employees globally. But don’t take our word for it. For the fourth year in a row, BAT has been named as a Global Top Employer by the Top Employers Institute, as well as a Top Employer in 34 individual countries. And for the second consecutive year, we featured in the Financial Times Diversity Leader rankings – a measure of an employer’s diversity of gender, age, ethnicity, disability and sexual orientation. This recognition inspires us to keep accelerating towards building A Better Tomorrow™. 8 BRITISH AMERICAN TOBACCO (MALAYSIA) BERHAD OVERVIEW Annual Report 2020 60th BRITISH AMERICAN TOBACCO (MALAYSIA) BERHAD ANNUAL GENERAL MEETING Broadcast Venue Infinity Room, Level 16 Guoco Tower, Damansara City No. 6, Jalan Damanlela Bukit Damansara 50490 Kuala Lumpur Date & Time Thursday // 22 April 2021 // 9.30 a.m. Website www.batmalaysia.com Scan to view our Annual Report 2020 microsite OVERVIEW BRITISH AMERICAN TOBACCO (MALAYSIA) BERHAD 9 Annual Report 2020 CONTENTS OVERVIEW A SMARTER AND SIMPLER FINANCIAL STATEMENTS ORGANISATION 11 Corporate Profile 118 Directors’ Responsibility Statement 12 Purpose & Strategy 41 A Smarter and Simpler Organisation 119 Directors’ Report 13 Overview of BAT Malaysia 41 Embracing Digital Transformation 125 Income Statements 14 Corporate Structure 42 Optimising Our Supply Chain 126 Statements of Other 15 Message to Shareholders Comprehensive Income and Stakeholders 127 Balance Sheets 16 Corporate Information SUSTAINABILITY 129 Consolidated Statement of Changes in Equity 45 Sustainability Statement 131 Statement of Changes in Equity 48 Material Matters PERFORMANCE 133 Statements of Cash Flows 49 Marketplace 135 Notes to the Financial Statements 18 Management Discussion and 51 Environment Analysis 204 Statement by Directors 52 Workplace 22 Awards and Achievements 205 Statutory Declaration 54 Community: Social Investment 24 Review of Financial Results 206 Independent Auditors’ Report 55 Corporate Governance 28 Five-Year Performance History 29 Five-Year Performance Highlights GRI STANDARDS 30 Corporate Highlights ACCELERATING GUIDELINE 2020 32 In the News TOMORROW’S LEADERS 211 GRI Standards Guideline 2020 57 Accelerating Tomorrow’s Leaders Investing in Leaders GROW COMBUSTIBLE 58 VALUE 60 Growth through Diversity OTHER INFORMATION 61 Attract the Best Talent 35 Premium Segment Analysis of Shareholdings 62 Workforce Engagement 242 36 Aspirational Premium Segment Corporate Directory 63 Recognising and Rewarding Talent 247 37 Value-for-Money Segment Notice of Annual General Meeting 64 Profile of Directors 248 Administrative Details 71 Profile of Leadership Team 253 • Proxy Form STEP-CHANGE IN NEW CATEGORIES GOVERNANCE 39 Reduced-Risk Products* 75 Corporate Governance Overview * Based on the weight of evidence and 93 Standards of Business Conduct assuming a complete switch from Other Compliance Information cigarette smoking. These products 97 are not risk free and are addictive. 98 Nomination and Remuneration Committee Report 102 Audit Committee Report 106 Risk Management Committee Report 107 Statement on Risk Management and Internal Control 10 BRITISH AMERICAN TOBACCO (MALAYSIA) BERHAD OVERVIEW Annual Report 2020 Overview 11 Corporate Profile 12 Purpose & Strategy 13 Overview of BAT Malaysia 14 Corporate Structure 15 Message to Shareholders and Stakeholders 16 Corporate Information OVERVIEW BRITISH AMERICAN TOBACCO (MALAYSIA) BERHAD 11 Annual Report 2020 CORPORATE PROFILE BRITISH AMERICAN TOBACCO (MALAYSIA) BERHAD British American Tobacco (Malaysia) Berhad (BAT Malaysia) is the leading tobacco company in the country with a 51.7% share of the legal market. (Source: IPSOS Retail Audit Dec 2020) The Company, with 397 direct employees and 1,808 indirect employees, has been listed on the Malaysian stock exchange since 1961. Our proud legacy provides a great platform for our purpose to build A Better TomorrowTM. We will build A Better TomorrowTM by reducing the health impact of our business through the offering of a greater choice of enjoyable and less risky products to our consumers. The Group has developed new categories of potentially reduced-risk alternatives to smoking and BAT Malaysia wishes to pursue discussions with the government to establish a regulatory framework for nicotine vaping. Together with our subsidiaries - Commercial Marketers and Distributors Sdn. Bhd., Rothmans Brands Sdn. Bhd., Tobacco Importers and Manufacturers Sdn. Berhad, Commercial Marketers and Distributors Sdn. Bhd. (Brunei), we currently offer high-quality tobacco brands such as Dunhill, Peter Stuyvesant, Rothmans, KYO, Pall Mall, Kent, and Benson & Hedges. BAT Malaysia is part of British American Tobacco p.l.c. Group’s investment in Malaysia, which also includes the British American Tobacco Asia Pacific Finance Shared Services, the British American Tobacco Asia Pacific Regional Product Centre, and the British American Tobacco Global Services Delivery. 12 BRITISH AMERICAN TOBACCO (MALAYSIA) BERHAD OVERVIEW Annual Report 2020 PURPOSE & STRATEGY OUR PURPOSE Our purpose is to build A Better Tomorrow™ for all our stakeholders. OUR STRATEGY Our business is on a transformation journey. Today, we see new opportunities to capture consumer moments which have, over time, become limited by societal and regulatory shifts, and to satisfy evolving consumer preferences. We have evolved our strategy to put a sharper focus on our New Category products, fuelled by investment from the continued delivery of our traditional tobacco business. Our strategy is about anticipating and aiming to satisfy the ever-evolving consumer: providing pleasure, reducing risk, offering an increasing choice and stimulating the senses of adult consumers worldwide. Scan this QR Code which explains more about our commitment to building A Better Tomorrow™ OVERVIEW BRITISH AMERICAN TOBACCO (MALAYSIA) BERHAD 13 Annual Report 2020 OVERVIEW OF BAT MALAYSIA At BAT Malaysia, we stand for Years of History in Malaysia Earnings Per Share (sen) being more than just the leading tobacco company in Malaysia. 100+ 85 We are recognised as a respectable corporate citizen with Employees Market Share an excellent track record in corporate governance and are known as a leading employer with a multitude of awards and recognition for best-in-class talent development. We also 397 51.7% understand the importance of community development. BAT Malaysia has been an active contributor to the Certified Top Employer community we operate in through various corporate social investments since our inception. RESULTS AT A GLANCE Revenue Profit Before Tax RM2,315MILLION RM329 MILLION Net Profit

View Full Text

Details

  • File Type
    pdf
  • Upload Time
    -
  • Content Languages
    English
  • Upload User
    Anonymous/Not logged-in
  • File Pages
    262 Page
  • File Size
    -

Download

Channel Download Status
Express Download Enable

Copyright

We respect the copyrights and intellectual property rights of all users. All uploaded documents are either original works of the uploader or authorized works of the rightful owners.

  • Not to be reproduced or distributed without explicit permission.
  • Not used for commercial purposes outside of approved use cases.
  • Not used to infringe on the rights of the original creators.
  • If you believe any content infringes your copyright, please contact us immediately.

Support

For help with questions, suggestions, or problems, please contact us