Annual Report 2009 - British American Tobacco

1. Revenue growth
Revenue
£ MILLION
07 10,018 +3%
08 12,122 +21%
09 14,208 +17%
2. Global Drive Brand volume
BILLIONS
07 161 +10%
08 187 +16%
09 195 +4%
3. Group’s share of key subsidiary markets
Share in its key 40 markets
%
08 28.2
09 27.9
4. Adjusted profit from operations
£ MILLION
07 3,002 +7%
08 3,717 +24%
09 4,461 +20%
MEASURING OUR PERFORMANCE
1. KEY PERFORMANCE INDICATORS
We have a wide range of measures and indicators by which the Board assesses
performance compared to the Group’s strategy. To ensure management’s focus is
aligned with the interests of our shareholders, the Key Performance Indicators are
reflected in our management incentive schemes.
+17% IN 2009 3-4% LONG-TERM TARGET
Revenue for 2009 grew by 17 per cent
compared to the target of growing revenue,
on average over the medium to long term, by
3-4 per cent per annum. Revenue growth in
2008 was 21 per cent, benefiting from
our acquisitions and favourable exchange
rate movements.
+4% IN 2009
A key strength of the Group is its diversified
Global Drive Brand (GDB) portfolio – Dunhill,
Kent, Lucky Strike and Pall Mall. In 2009, GDB
overall volume grew by 4 per cent to 195 billion,
compared to growth of 16 per cent in 2008.
Our target is to achieve high single-figure
growth, on average, over the long term.
The Group subsidiaries’ market share softened
from 28.2 per cent to 27.9 per cent. The
target is to continue to grow market share.
This figure is calculated as the revenue of
the Group after the deduction of any duties,
excise and other taxes, as published in the
Group income statement.
LONG-TERM TARGET,
HIGH SINGLE-FIGURE GROWTH
GDB volumes are calculated as the total
volumes of the four brands sold by our
subsidiaries. More information about the
GDBs and their individual performances
is provided in the section ‘Our Strategy
– Growth’.
CONTINUE TO GROW SHARE
Retail market share in the Group’s
key 40 markets which covers around
80 per cent of the volumes of subsidiaries.
The information used in this calculation
is based on publicly available information
and internal company analysis.
+20% IN 2009 +6% LONG-TERM TARGET
The Group’s target is to grow adjusted profit
from operations on average by 6 per cent
per annum. For 2009 it was 20 per cent,
compared to 24 per cent growth in 2008.
Profit used in this assessment is the adjusted
profit from operations of the Group’s
subsidiaries – adjusted for the items shown
as memorandum information on the Group
income statement.
08 British American Tobacco Annual Report 2009 Directors’ report: Business review