Case 1:20-cv-00393-LMB-TCB Document 1406-28 Filed 08/12/22 Page 1 of 3 PageID# 35146
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`Exhibit 28
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`Case 1:20-cv-00393-LMB-TCB Document 1406-28 Filed 08/12/22 Page 2 of 3 PagelD# 3B7343
`Case 1:20-cv-00393-LMB-TCB Document 1406-28 Filed 08/12/22 Page 2 of 3 PageID# 35147
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`S&P Global
`Market Intelligence
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`British American Tobacco p.I.c. LSE:BATS
`FH1 2018 Earnings Call Transcripts
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` Cc Tek
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`>&P Global Market
`Int
`2nce
`Estimates
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`-FH2 2018-
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`-FY 2018-
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`-FY 2019-
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`CONSENSUS
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`SURPRISE
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`CONSENSUS
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`CONSENSUS
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`-FH1 2018-
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`CONSENSUS
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`EPS Normalized
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`1.35
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`1.58
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`12731.61
`11660.49
`Revenue (mm)
`Currency: GBP
`: DE -
`Consensus as of Jul-26-2018 9:01 AM GMT
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`3.23
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`ih 1.36
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`-
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`2.94
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`3.22
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`24418.21
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`25711.11
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`-
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`-
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`Steck Price [GRP] vs. Volome ~oim) withearnings surprise annotations
`Share
`Price
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`gh” Positive EPS Normalized surprise:
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`Mo Negative EPS Normalized suranes
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`|
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` POOOR
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`) Neue EPS Normalized sursrise
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`Meobarnie
`ADOre
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`20.Gene
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`SOOrrin
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`S0onOen
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`eoOrit
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`20.Obert
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`LO0oorr
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`OCOr In
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`BOG
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`BOO og
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`55Oe
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`SOO04
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`SO.
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`OGL
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`Sooo.
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`Se AOTS.
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`Ape Sory
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`JHE 2OUS
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`ck ais:
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`SHE ADIS:
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`AO
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`EOS
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`- EPS NORMALIZED -
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`FH1 2017
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`FH2 2017
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`FHI 2018
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`1.32
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`1.48
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`1.35
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`1.34
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`1,50
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`1,37
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`COPYRIGHT © 2019 SRP Global Market Intelligence, a division of S&P Global Inc. All rights reserved
`spglobal.com /marketintelligence
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`i
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`DEF_PUB_EDVA000022858
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`PX-343
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`Case 1:20-cv-00393-LMB-TCB Document 1406-28 Filed 08/12/22 Page 3 of 3 PageID# 35148
`Case 1:20-cv-00393-LMB-TCB Document 1406-28 Filed 08/12/22 Page 3 of 3 PagelD# 35148
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`BRITISH AMERICAN TOBACCO P.L.C, FAI 2018 EARNINGS CALL |
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`JUL 26, 2014
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`stores, ePen 3 has achieved the highest rate of sale for any Vype device to date. With higher margins than
`ePen 2, and refill purchase rates the highest achieved for any Vype product to date, the early signs are
`encouraging.
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`In the U.S., the category has continued to grow up rapidly and is up over 20%in the first half, driven by
`a significant increase in the size of the consumer base. Vapor revenue was down 4%, but up 12%after
`adjusted for the impact of VUSE Vibe recall. The overall VUSE family, which has featured nicotine salts
`technology since 2012, continued to grow volume and value. However, share was down 10 percentage
`points to 21% due to the growth in the Vapor category.
`
`In Q2, VUSE Vibe recall volumes were absorbed as negative sales. However, both VUSE Ciro and VUSE
`Solo have captured a significant proportion of their volume loss by the recall. Recall costs have not been
`material.
`
`In August, we will be launching the VUSE Alto in the U.S., our first Pod Mod product. This will be available
`in 4 variants, and will new feature, an innovative ceramic wick. Like other VUSE products, Alto has a 5%
`nicotine concentration liquid and is a nicotine salt product. Our research showsthat Alto rates significantly
`higher than any other nicotine salt Pod Mod products on a number of key consumer attributes and
`purchaseintent.
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`We continue to perform well in our other markets and remain the market leader in Poland and in Germany
`in closed systems. We also recently launched ePen 3 in Canada and Vype in Greece. The opportunity in the
`category remains significant. When you look at total nicotine consumption, we continue to see a growing
`market for nicotine with new consumers and behaviors, driven by the growth in the Vapor category. With a
`strong product pipeline, we are well positioned with our multicategory approach to be a winner.
`
`So in summary, we are continuing to deliver on our commitment to high-single figure earnings growth.
`Our combustible business is outperforming the industry, and we are generating strong revenue growth
`from the strategic portfolio. In the U.S., the business performing well and synergy delivery is ahead of
`plan. Our potentially reduced risk products continue to grow strongly. We havesignificant additional
`investments in NGPs planned as well for the second half and expect to see THP category grow again in
`Japan.
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`Given these, I continue to believe we can deliver in excess of GBP 1 billion in NGP revenue this year, more
`than doubling the size of our business over the course of 2018. We are on track for another good year of
`earnings growth at constant currency, driven by strong underlying profit growth and with the benefit of the
`U.S. tax reform allowing us to accelerate our NGP investments. Overall, the business is performing well.
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`I will now hand over to Ben, who will take you through the details of the results.
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`John Benedict Stevens
`Finance Director & Executive Director
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`Thank you, Nicandro, and good morning, everyone. As Nicandro said in his opening, reported volume,
`revenue and profit from operations were up 11%, 57% and 72%, respectively, benefiting significantly from
`the inclusion of Reynolds as a wholly owned subsidiary.
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`As weSaid earlier, for clarity, I will now focus on the adjusted representative results, which wereall
`against a comparative base that assumesfull ownership of Reynolds and other acquisitions throughout
`2017. This doesn't affect comparisons made on an EPSbasis.
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`Representative volume was down 2.2%. This was mainly driven by trade inventory movementsin the
`GCC and industry volume decline, in particular in Ukraine, Brazil and Russia; partially offset by growth in
`Pakistan and THP volume, which reached 3.3 billion sticks in the first half.
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`Adjusted revenue was down 6.4%at current rates but was up 1.9% on a constant basis as higher pricing
`across the majority of our markets was partly offset by negative geographic and portfolio mix of around
`3%.
`
`Copyright © 2019 S&P Global Market Intelligence, a division of S&P Global Inc. All Rights reserved.
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