英美煙草 (BTI) 2017 Q4 法說會逐字稿

Good morning, everyone, and welcome to British American Tobacco 2017 Preliminary Results Presentation. I am Nicandro Durante, Chief Executive Officer of British American Tobacco, and with me this morning is Ben Stevens, Finance Director. As always, a warm welcome to those of you who are listening on the conference call or watching via our website, bat.com.

大家早上好，歡迎來到英美煙草 2017 年初步結果演示會。我是英美煙草公司的首席執行官 Nicandro Durante，今天早上和我在一起的是財務總監 Ben Stevens。一如既往，熱烈歡迎那些正在收聽電話會議或通過我們的網站 bat.com 觀看的人。

As usual, after taking you through the results presentation, there will be an opportunity for you to ask questions.

像往常一樣，在帶您完成結果演示後，您將有機會提問。

Before I start the presentation, I will take it that you have all seen and read the disclaimer.

在我開始演示之前，我認為你們都已經看過並閱讀了免責聲明。

2017 was a transformational year for BAT. Not only did we deliver on the financials, but we also completed our acquisition of Reynolds American, the largest tobacco deal in history. It's a transformational deal, providing BAT with access to one of the most profitable markets in the world, a unique portfolio of brands and products, and further, it reinforces the long-term sustainability of our commitment to high single-figure EPS growth.

2017 年是 BAT 轉型的一年。我們不僅實現了財務業績，而且還完成了對 Reynolds American 的收購，這是歷史上最大的煙草交易。這是一項變革性的交易，為 BAT 提供了進入世界上最賺錢的市場之一、獨特的品牌和產品組合的機會，並且進一步加強了我們對高個位數每股收益增長的承諾的長期可持續性。

I am proud to say that, once again, we have delivered on this commitment. At current rates, adjusted EPS grew 15% and was up 10% on a constant currency basis.

我很自豪地說，我們再次兌現了這一承諾。按當前匯率計算，調整後每股收益增長 15%，按固定匯率計算增長 10%。

This was driven by the continued good performance of our combustible business with the GDBs, the newly acquired U.S. brands and the group's overall growing share.

這得益於我們與 GDBs 的可燃業務的持續良好表現、新收購的美國品牌以及集團整體份額的增長。

Reported EPS was up over 600%, mainly due to accounting treatment of the Reynolds acquisition. Ben will talk more about this later.

報告的每股收益增長超過 600%，主要是由於對雷諾茲收購的會計處理。稍後 Ben 將對此進行更多討論。

2017 was also a transformational year for us in NGPs. Our expanded vapor business reached an annualized revenue of nearly GBP 300 million, and the strong growth of glo in Japan drove THP revenue from 0 to over GBP 200 million. In total, the combined NGP business delivered GBP 500 million to group revenue on an annualized basis in 2017, meeting the target we set at our Investors Day in October. We are aiming to grow this to over GBP 1 billion this year and to GBP 5 billion by 2022. I am confident of substantially increasing -- exceeding these targets.

2017 年也是我們 NGP 轉型的一年。我們擴大後的蒸汽業務實現年化收入近 3 億英鎊，日本 glo 的強勁增長推動 THP 收入從 0 增長到超過 2 億英鎊。 2017 年，合併後的 NGP 業務每年為集團帶來 5 億英鎊的收入，達到了我們在 10 月投資者日設定的目標。我們的目標是今年將其增長到 10 億英鎊以上，到 2022 年增長到 50 億英鎊。我有信心大幅增長——超過這些目標。

Our confidence in the future of the business is reflected in the 15% increase in the dividend, which we announced this morning.

我們對業務未來的信心體現在我們今天上午宣布的 15% 的股息增長中。

2017 was also an eventful year for the industry. Although we saw higher price in most markets, we also have seen significant excise increases in the GCC, Russia, Pakistan and Malaysia over the recent years. These, together with a more aggressive price environment in a number of markets, led to down-trading, continued growth in illicits and industry volume decline.

2017年對於行業來說也是多事之年。儘管我們看到大多數市場的價格上漲，但近年來我們也看到海合會、俄羅斯、巴基斯坦和馬來西亞的消費稅大幅上漲。這些，再加上一些市場的價格環境更加激進，導致交易量下降、非法交易持續增長和行業數量下降。

Against this challenging backdrop, BAT once again outperformed the industry. Organic cigarette volume, including THP, was down 2.6% against an industry down around 3.5%. In July, the FDA announced a consultation for new tobacco regulation proposals. We remain very encouraged by the FDA's recognition of the continuum of risk for tobacco products and of tobacco harm reduction as a policy. We have advocated these principles for 20 years, and the support of a regulator is key to the transformation of the tobacco industry.

在這種充滿挑戰的背景下，英美煙草再次跑贏行業。包括 THP 在內的有機捲煙銷量下降 2.6%，而行業下降約 3.5%。 7 月，FDA 宣布就新的煙草法規提案進行磋商。 FDA 承認煙草製品的連續風險以及將減少煙草危害作為一項政策，這讓我們感到非常鼓舞。 20 年來，我們一直倡導這些原則，而監管機構的支持是煙草業轉型的關鍵。

However, this is a new, complicated area, and it will take time to get through the process. We await the publication of the advanced notice of proposed rulemaking and look forward to participate in the consultation process.

然而，這是一個新的、複雜的領域，需要時間來完成這個過程。我們等待發布擬議規則制定的提前通知，並期待參與諮詢過程。

In Québec, a judgment from the Court of Appeal continues to be expected any time in the class action cases against our Canadian subsidiary. As I've said before, a wide range of outcomes is possible, including a request for leave to appear to the Supreme Court of Canada and the use of Canadian regulations, such as the most suitable way.

在魁北克，在針對我們加拿大子公司的集體訴訟案件中，任何時候都需要上訴法院的判決。正如我之前所說，可能的結果範圍很廣，包括請求允許在加拿大最高法院出庭和使用加拿大法規，例如最合適的方式。

Finally, at the end of the year, the U.S. corporate tax reform plans were approved. As announced earlier this year, this provides a benefit to the 2018 EPS of 6%, all things being equal. We would expect around half of this to be reinvested in the rollout of NGPs.

最終，在年底，美國公司稅改革計劃獲得批准。正如今年早些時候宣布的那樣，這為 2018 年每股收益帶來了 6% 的收益，所有條件都相同。我們預計其中大約一半將再投資於 NGP 的推出。

The highlight of the year was, of course, our acquisition of Reynolds, and I'm delighted to say that the benefits of the deal are already beginning to flow through. With only 5 months' contribution for Reynolds in our numbers and no comparison base available, we are unable to give any financial performance commentary on the business. However, what I can say is that Reynolds is performing very well, with strong share growth in the second half of the year, and the integration is progressing smoothly.

當然，今年的重頭戲是我們對 Reynolds 的收購，我很高興地說，這筆交易的好處已經開始顯現。由於我們的數據中只有 5 個月對雷諾的貢獻，並且沒有可用的比較基礎，我們無法對該業務提供任何財務業績評論。不過，我能說的是，雷諾表現非常好，下半年份額增長強勁，整合進展順利。

Detailed plans have been drawn up for delivery of the synergies. As we said at the end of the deal, we expect cost synergies of at least $400 million. I'm happy to report that savings are flowing through a little earlier than anticipated, and they have already delivered more than $70 million in 2017. This has been driven by the benefits of procurement, the implementation of BAT systems and process into the Reynolds production facilities together with integration of the corporate functions. We remain well on track to deliver our target of at least $400 million in cost synergies by the end of 2020.

為實現協同效應制定了詳細計劃。正如我們在交易結束時所說，我們預計成本協同效應至少為 4 億美元。我很高興地報告說，節省的時間比預期的要早一點，他們在 2017 年已經交付了超過 7000 萬美元。這得益於採購的好處、BAT 系統的實施和雷諾生產的流程設施與企業職能的整合。我們仍有望在 2020 年底前實現至少 4 億美元的成本協同效應目標。

In addition, we are combining the capabilities of both organizations to fully strengthen our global R&D. We're the only company with a predicated tobacco heating product in U.S. markets.

此外，我們正在結合兩個組織的能力，以全面加強我們的全球研發。我們是美國市場上唯一一家擁有煙草加熱產品的公司。

I am pleased to say that a substantial equivalence application for our carbon tipped product has been accepted by the FDA and moved to scientific review. We await a final decision around midyear.

我很高興地說，我們的碳尖產品的實質性等效申請已被 FDA 接受並進入科學審查階段。我們等待年中左右的最終決定。

We are also making good progress on the development of our SE application for glo in the U.S., and we are on track for a submission to be made this month to be followed by an MRTP application in due course.

我們在美國的 glo SE 申請的開發方面也取得了良好進展，我們有望在本月提交一份申請，然後在適當的時候提交一份 MRTP 申請。

Finally, we look forward to the FDA's response on our MRTP application for Camel snus, and we are awaiting the scheduling of our TPSAC meeting to review the application later this year.

最後，我們期待 FDA 對我們的駱駝鼻煙的 MRTP 申請做出回應，我們正在等待今年晚些時候的 TPSAC 會議安排對申請進行審查。

The addition of Reynolds to the business gives us an industry-leading portfolio of brands and products. Given this and the growing importance of NGP to the business, we have expanded our focus from just the GDBs to include the U.S. Drive Brands, our NGP business and our oral product business in the U.S. and the Nordics.

Reynolds 的加入為我們提供了行業領先的品牌和產品組合。鑑於這一點以及 NGP 對業務日益增長的重要性，我們已將重點從 GDB 擴大到包括美國 Drive Brands、我們的 NGP 業務以及我們在美國和北歐的口腔產品業務。

All our tobacco products, like snus and U.S. moist snus, have existing epidemiology demonstrating their potential as reduced-risk products. Together with our NGP, we refer to them as potentially reduced-risk products.

我們所有的煙草產品，如鼻煙和美國濕鼻煙，現有的流行病學都證明了它們作為降低風險產品的潛力。連同我們的 NGP，我們將它們稱為可能降低風險的產品。

From 2018, our strategic methods will focus on revenue growth for this expanded Drive Brand portfolio as this is a key measure of success and has come across all 4 product categories. This more closely aligns with our strategy and vision. This expanded portfolio gives BAT an industry-leading range of brands and products spanning the risk continuum that's second to none.

從 2018 年開始，我們的戰略方法將專注於擴大 Drive Brand 產品組合的收入增長，因為這是衡量成功的關鍵指標，並且涵蓋了所有 4 個產品類別。這更符合我們的戰略和願景。這種擴展的產品組合為 BAT 提供了行業領先的品牌和產品範圍，涵蓋了首屈一指的風險連續性。

Even with the growing importance of NGPs, a significant proportion of the portfolio remains in the combustible cigarette business, which I'm pleased to say that's continued to perform very well. Overall, corporate share grew strongly and was up 40 basis points in 2017, on top of the 50 basis points achieved last year. This was driven by another excellent performance for the GDBs, which grew share by 110 basis points across our key markets outside the U.S. This is now our 7th consecutive year of share growth, with corporate share up a total of 210 basis points over the period and GDBs up 630 basis points over the same period.

儘管 NGP 的重要性日益增加，但投資組合的很大一部分仍屬於可燃捲菸業務，我很高興地說，該業務繼續表現良好。總體而言，企業份額增長強勁，在去年達到 50 個基點的基礎上，2017 年增長了 40 個基點。這是由 GDB 的另一項出色表現推動的，在我們在美國以外的主要市場的份額增長了 110 個基點。這是我們連續第 7 年實現份額增長，在此期間企業份額總共增長了 210 個基點，並且GDB 同期上漲 630 個基點。

The U.S. Drive Brands outperformed the U.S. industry, growing share by 40 basis points. Combined together, Newport and NAS are the fastest growing brands in premium. Dunhill held up well in the premium segment but was impacted by down-trading and significant excise increase in many of its key markets, including Malaysia, Brazil and Indonesia. However, share was down only 10 basis points.

美國 Drive Brands 的表現優於美國行業，份額增長了 40 個基點。結合在一起，Newport 和 NAS 是增長最快的高端品牌。登喜路在高端市場表現良好，但受到包括馬來西亞、巴西和印度尼西亞在內的許多主要市場的交易下滑和消費稅大幅上漲的影響。然而，股價僅下跌 10 個基點。

Kent, Lucky Strike, Pall Mall and Rothmans all grew share, demonstrating the strength of our differentiated brand portfolio and diverse geographic footprint.

Kent、Lucky Strike、Pall Mall 和 Rothmans 的份額均有所增長，顯示了我們差異化品牌組合和多元化地理足蹟的實力。

Our expanded Drive Brand portfolio includes an exciting portfolio of potentially reduced-risk products. Our Tobacco Heating Products cover electronic carbon tip and hybrid products. In Vapor, we have a wide range of open and closed systems under both Vype and VUSE. Finally, the recent acquisition of Reynolds and Winnington extend the portfolio even further into the growing oral tobacco segment with both tobacco and no-tobacco oral products.

我們擴展的 Drive Brand 產品組合包括令人興奮的潛在風險降低產品組合。我們的煙草加熱產品涵蓋電子碳尖端和混合產品。在 Vapor 中，我們在 Vype 和 VUSE 下都有廣泛的開放和封閉系統。最後，最近對 Reynolds 和 Winnington 的收購將產品組合進一步擴展到了不斷增長的口腔煙草領域，包括煙草和無菸草口腔產品。

BAT now has the widest range of potentially reduced-risk products of any tobacco company in the world, with the capability of addressing the widest range of consumer needs. We are therefore the best-placed tobacco company to lead the transformation of the industry and transition the largest numbers of smokers from traditional cigarettes to potentially reduced-risk products.

BAT 現在擁有世界上任何煙草公司中最廣泛的潛在風險降低產品，能夠滿足最廣泛的消費者需求。因此，我們是引領行業轉型和將最大數量的吸煙者從傳統捲菸轉變為潛在風險降低產品的最佳煙草公司。

glo is already demonstrating this in Japan. Just 4 months after the national rollout, glo already has 4.1% market share in January despite continued capacity constraints limiting the device to one per store per week. Together with our suppliers, we are building device manufacturing capacity rapidly and anticipate to have an annualized capacity of 25 million units by the end of the year. We expect device capacity to become unconstrained during Q2.

glo 已經在日本展示了這一點。在全國推出僅 4 個月後，glo 在 1 月份已經擁有 4.1% 的市場份額，儘管持續的產能限制將設備限制為每週每家商店一台。與供應商一起，我們正在迅速建立設備製造能力，預計到今年年底的年產能將達到 2500 萬台。我們預計第二季度設備容量將不受限制。

Our annualized consumer capacity is already 15 billion sticks, and we are able to increase these to 52 billion sticks by the end of the year.

我們的年化消費能力已經是 150 億支，到今年年底我們可以將其增加到 520 億支。

In December, we launched 4 new narrow-stick variants, which had quickly grown to represent 40% of glo sales. glo now has the widest range of products in the market, with a strong pipeline of innovation, including capsule variant and glo mini following later in this year.

12 月，我們推出了 4 種新的窄桿變體，這些變體迅速增長到佔 glo 銷售額的 40%。 glo 現在擁有市場上最廣泛的產品，擁有強大的創新渠道，包括今年晚些時候推出的膠囊變體和 glo mini。

During 2017, glo was also launched in South Korea, Canada, Russia, Switzerland and most recently, Romania. In South Korea, following its launch in Seoul in August, glo was rolled out nationally. glo continues to grow national share and now reached 0.44%. Share in Seoul has slowed, impacted by a combination of supply constraints and a new competitor entering into the market. We are currently expanding distribution and adapting our marketing model to reinforce our market presence. With a strong pipeline of innovations, we are confident in glo's potential in South Korea.

2017 年，glo 還在韓國、加拿大、俄羅斯、瑞士以及最近的羅馬尼亞推出。在韓國，繼 8 月在首爾推出之後，glo 在全國推廣。 glo 繼續增長全國份額，現在達到 0.44%。受供應限制和新競爭對手進入市場的影響，首爾的份額有所放緩。我們目前正在擴大分銷並調整我們的營銷模式以加強我們的市場佔有率。憑藉強大的創新渠道，我們對 glo 在韓國的潛力充滿信心。

In our trial markets of Canada and Switzerland, we are continuing to refine our marketing model to address the challenge of extremely restricted communication environments and consumer preference for stronger cigarettes.

在我們的加拿大和瑞士試驗市場，我們將繼續完善我們的營銷模式，以應對極其受限的溝通環境和消費者對烈性捲菸偏好的挑戰。

Our recent stick launches in Russia and Romania are showing very encouraging early results.

我們最近在俄羅斯和羅馬尼亞推出的棍棒顯示出非常令人鼓舞的早期結果。

During 2018, we have plans to launch glo in additional 14 markets. Having only entered the THP market in December 2016, we have made excellent progress during '17 and expect to build on this in 2018.

2018 年，我們計劃在另外 14 個市場推出 glo。在 2016 年 12 月才進入 THP 市場，我們在 17 年取得了出色的進展，並希望在 2018 年更上一層樓。

We also continue to make good progress in the development of our Vapor business in 2017. Excluding the U.S., Vapor revenue was up 30%. Mainly driven by acquisition, gross margin improved by 10 percentage points, and we are now on track for our Vapor business to break even by the end of '18.

2017 年，我們的蒸汽業務發展也繼續取得良好進展。不包括美國，蒸汽收入增長了 30%。主要受收購推動，毛利率提高了 10 個百分點，我們現在有望在 18 年底前實現蒸汽業務收支平衡。

We continue to consolidate our leadership position in our key markets. In the U.K., our Vapor business maintained a record share in retail of 40%. In Germany, Vype became the #1 brand in retail with a record 37% share in the channel and an estimated 10% of the total vapor markets.

我們繼續鞏固我們在主要市場的領導地位。在英國，我們的蒸汽業務保持了 40% 的零售份額，創下歷史新高。在德國，Vype 以創紀錄的 37% 的渠道份額和約 10% 的總蒸汽市場份額成為零售業第一品牌。

In France, offtake volume was up 1/3. And in Italy, we expanded distribution to national coverage, driving a significant increase in sales. In the U.S., VUSE grew by 16% of revenue, by 29%, following increased distribution of Vype and the launch of (inaudible).

在法國，承購量增加了 1/3。在意大利，我們將分銷範圍擴大到全國范圍，推動銷售額顯著增長。在美國，隨著 Vype 的分銷增加和（聽不清）的推出，VUSE 的收入增長了 16%，增長了 29%。

Commercial performance will be boosted further by the recent launch of VUSE e-commerce platform. Importantly, product performance continued to be highly valued by consumers when tested against direct competitors' products.

近期推出的 VUSE 電子商務平台將進一步提升商業表現。重要的是，在與直接競爭對手的產品進行測試時，消費者仍然高度重視產品性能。

Our acquisitions in Poland and the U.K. have performed very well. In Poland, CHIC volumes was up over 12%. In the U.K., 10 Motives has grown market share and revenue month-on-month.

我們在波蘭和英國的收購表現非常好。在波蘭，CHIC 銷量增長了 12% 以上。在英國，10 Motives 的市場份額和收入環比增長。

The integration of the VIP vape store chain in the U.S -- U.K. is progressing well, and a 25% expansion of the footprint is planned for 2018.

VIP vape 連鎖店在美國-英國的整合進展順利，計劃在 2018 年擴大 25% 的足跡。

Finally, the priority for 2018 is our second generation of Vapor products, ePen 3 and Raptor, both of which are due for launch towards the year-end.

最後，2018 年的重點是我們的第二代 Vapor 產品 ePen 3 和 Raptor，這兩款產品都將在年底推出。

During 2017, consumer incidence in Vapor across our key markets is estimated to have grown around 40%, with sharper rises in category penetration in a number of emerging markets. Our strong pipeline of second-generation of Vapor products and a growing understanding of Vapor consumers puts us in a strong position to capitalize on this growth.

2017 年期間，我們主要市場的 Vapor 消費者使用率估計增長了 40% 左右，其中一些新興市場的品類滲透率急劇上升。我們強大的第二代 Vapor 產品管道以及對 Vapor 消費者的日益了解使我們處於有利地位，可以利用這一增長。

Alongside our growing NGP business, our large and successful oral tobacco business in the Nordics and in the larger U.S. markets provides a further opportunity for smokers to switch to lower-risk products. In 2017, total revenue for oral tobacco grew 16% to nearly GBP 900 million, driven by strong performance in the U.S., Sweden and Norway. In the U.S., Grizzly remains the leader in the growing wintergreen in pouch segments. The brand gained a full point of market share to reach 31.8% in 2017, driven by Grizzly Dark styles, limited edition packaging and powerful equity-building campaigns.

除了我們不斷增長的 NGP 業務外，我們在北歐和更大的美國市場上成功的大型口服煙草業務為吸煙者提供了轉向低風險產品的進一步機會。在美國、瑞典和挪威的強勁表現的推動下，2017 年口腔用煙草的總收入增長了 16%，達到近 9 億英鎊。在美國，Grizzly 仍然是袋裝冬青種植領域的領導者。該品牌在 2017 年獲得了完整的市場份額，達到 31.8%，這得益於 Grizzly Dark 風格、限量版包裝和強大的股權建設活動。

In Sweden, we are the fastest growing company, adding 170 basis points over the year to reach a share of 10.3% in December.

在瑞典，我們是增長最快的公司，同比增長 170 個基點，在 12 月達到 10.3% 的份額。

In Norway, share was up 340 basis points to a record 6.4% in December, driven by the success of Epok, our innovative snus brand.

在我們創新鼻煙品牌 Epok 的成功推動下，挪威 12 月的份額上漲了 340 個基點，達到創紀錄的 6.4%。

Across the Nordics, we are now the leader in white snus, the fastest-growing segment across the markets, with an 85% share of segment. We expect to launch a non-tobacco variant in the second half and have plans to expand outside the Nordics with these innovative and profitable products.

在整個北歐，我們現在是白色鼻煙的領導者，這是整個市場增長最快的細分市場，佔有 85% 的細分市場份額。我們預計將在下半年推出非煙草產品，併計劃通過這些創新和盈利的產品向北歐以外的地區擴張。

So in summary, in 2017, we completed the Reynolds acquisition and we made excellent progress in NGPs and the wider potentially reduced-risk products portfolio. Our combustible business continued to perform strongly, and we are investing a substantial amount of money in the long-term sustainability of the group.

總之，2017 年，我們完成了對雷諾茲的收購，我們在 NGP 和更廣泛的潛在風險降低產品組合方面取得了出色的進展。我們的可燃業務繼續表現強勁，我們正在為集團的長期可持續發展投入大量資金。

This was all done while delivering on our commitment to high single-figure earnings growth, and this was a truly transformational year.

這一切都是在兌現我們對高個位數收益增長的承諾的同時完成的，這是真正轉型的一年。

I will now hand over to Ben, who will take you through the details of the results.

我現在將移交給 Ben，他將帶您了解結果的詳細信息。

Thank you, Nicandro. As Nicandro said in his opening, this year's numbers have been significantly impacted by the accounting treatment of the Reynolds acquisition. Revenue was up 38%, and profit from operations increased by 39%. This reflects the additional volume of 36 billion sticks, revenue of GBP 4.2 billion and profit from operations of GBP 1.3 billion from the inclusion of Reynolds from the date of acquisition.

謝謝你，尼坎德羅。正如尼坎德羅在開幕式上所說，今年的數字受到雷諾茲收購會計處理的重大影響。收入增長 38%，運營利潤增長 39%。這反映了從收購之日起，包括雷諾茲在內的額外銷量為 360 億支，收入為 42 億英鎊，運營利潤為 13 億英鎊。

Diluted EPS was up over 600%. You can see from the slide, this was mainly due to a gain of GBP 23.3 billion on the deemed disposal of the associate holding in Reynolds and the deferred tax credit created by the revaluation of the deferred tax liability relating to the acquisition at a reduced tax rate following the U.S. tax reforms.

稀釋後每股收益增長超過 600%。您可以從幻燈片中看到，這主要是由於視同出售 Reynolds 的聯營公司而獲得了 233 億英鎊的收益，以及通過以減稅方式重估與收購相關的遞延所得稅負債而產生的遞延所得稅抵免美國稅制改革後的稅率。

More detail on the adjustments is available in the announcement published this morning, and there's a reconciliation of IFRS to the adjusted numbers in the supplementary slides of this presentation, which are available on our website.

有關調整的更多詳細信息，請參閱今天上午發布的公告，本演示文稿的補充幻燈片中對 IFRS 與調整後的數字進行了核對，這些幻燈片可在我們的網站上找到。

I do not propose to go any deeper into the technical accounting details in this presentation, but for those of you who want to go into the detail in more depth, please contact IR after the meeting closes.

我不建議在此演示文稿中深入討論技術會計細節，但對於那些想要更深入地了解細節的人，請在會議結束後聯繫 IR。

So for clarity, I'll now focus on the adjusted organic results, which exclude the results of Reynolds and our other acquisitions.

因此，為清楚起見，我現在將重點關注調整後的有機結果，其中不包括雷諾茲和我們其他收購的結果。

Organic volume was down 2.6%. This was mainly due to industry volume decline, in particular, in Ukraine, Brazil, South Africa and Russia, driven by excise increases and illicit trade growth. This includes THP volume of 2.2 billion sticks.

有機交易量下降 2.6%。這主要是由於工業量下降，特別是在烏克蘭、巴西、南非和俄羅斯，受消費稅增加和非法貿易增長的推動。這包括 22 億支 THP 的數量。

Adjusted organic revenue was up 6.5%, or 2.9% on a constant basis, benefiting from higher pricing across the majority of our markets, offset by negative geographic and portfolio mix of around 1.4%. Adjusted organic profit was up 7.8%, benefiting from a 4% currency tailwind. This was a 6% tailwind including the contribution from Reynolds.

調整後的有機收入增長了 6.5%，即持續增長 2.9%，這得益於我們大部分市場的更高定價，但被約 1.4% 的負地理和投資組合組合所抵消。調整後的有機利潤增長了 7.8%，受益於 4% 的貨幣順風。包括雷諾茲的貢獻在內，這是一個 6% 的順風。

On a constant basis, profit grew 3.7%. This reflects a stronger second half profit growth of 4.1% against the first half growth of 3.2%. This was anticipated at the interims.

在持續的基礎上，利潤增長了 3.7%。這反映出下半年利潤增長 4.1% 高於上半年增長 3.2%。這是在過渡時期預料到的。

Adjusted diluted EPS on a constant basis grew nearly 10% and was up almost 15% at current rates, exceeding our high single-figure EPS growth objective.

調整後的稀釋後每股收益持續增長近 10%，按當前速度增長近 15%，超過了我們的高個位數每股收益增長目標。

Turning now to the regions. In EEMEA, adjusted revenue on a constant basis was up 0.6% as price in a number of markets, including Ukraine, Turkey and Iran, more than offset volume decline in the region and down-trading in Russia and the GCC.

現在轉向地區。在 EEMEA，調整後收入持續增長 0.6%，原因是包括烏克蘭、土耳其和伊朗在內的多個市場的價格抵消了該地區銷量下降以及俄羅斯和海灣合作委員會的下滑。

Volume was down 3.4% to 228 billion sticks. Growth in Nigeria, Turkey, the GCC and Algeria was more than offset by reductions in Ukraine, South Africa, Russia and Iran.

銷量下降 3.4% 至 2280 億支。尼日利亞、土耳其、海灣合作委員會和阿爾及利亞的增長被烏克蘭、南非、俄羅斯和伊朗的下降所抵消。

Share grew 30 basis points, with good performances from Russia and Turkey, in particular. This is now the fourth consecutive year of share growth in the region.

份額增長了 30 個基點，尤其是俄羅斯和土耳其的表現良好。這是該地區連續第四年實現份額增長。

Despite good performances from Ukraine, Iran and Nigeria, constant currency adjusted profit was down 1.9%. This was mainly due to the significant excise increase in the GCC, difficult trading conditions in Russia and the continuing negative impact of transactional foreign exchange on costs. In Russia, trading remains challenging, with increased price competition. This has led to some absorption of excise and down-trading.

儘管烏克蘭、伊朗和尼日利亞表現良好，但固定匯率調整後的利潤下降了 1.9%。這主要是由於海灣合作委員會的消費稅大幅增加、俄羅斯貿易條件艱難以及交易性外匯對成本的持續負面影響。在俄羅斯，貿易仍然充滿挑戰，價格競爭加劇。這導致了一些消費稅和下行交易的吸收。

Share grew 10 basis points, driven by another strong performance from Rothmans, which now has over 10% market share.

受 Rothmans 又一強勁表現的推動，股價上漲了 10 個基點，該公司現在擁有超過 10% 的市場份額。

In South Africa, the weak macroeconomic environment continues to impact trading. However, share was stable, and Dunhill reached a record share of over 15%.

在南非，疲軟的宏觀經濟環境繼續影響貿易。然而，份額保持穩定，登喜路達到了超過 15% 的創紀錄份額。

Turkey delivered an excellent performance, with growth in revenue, profit and share.

土耳其表現出色，收入、利潤和份額均有所增長。

Overall, the GDBs had another outstanding year across the region. GDB volume was up 9.9%, driven by good performances from Pall Mall in the GCC, Rothmans in Russia and Kent in Turkey.

總體而言，GDB 在該地區又經歷了出色的一年。 GDB 交易量增長 9.9%，主要得益於海灣合作委員會 Pall Mall、俄羅斯 Rothmans 和土耳其 Kent 的良好表現。

The ASPAC region posted a good performance, delivering revenue, profit and share growth in a challenging trading environment. Regional volume was down 1.3% as the impact of industry volume declines in Malaysia, Pakistan and South Korea more than offset growth from glo and excellent volume and share growth in Bangladesh.

亞太地區表現良好，在充滿挑戰的貿易環境中實現收入、利潤和份額增長。區域銷量下降 1.3%，原因是馬來西亞、巴基斯坦和韓國行業銷量下降的影響超過了 glo 的增長以及孟加拉國出色的銷量和份額增長。

Adjusted revenue on a constant currency basis increased by 1.3% to GBP 4.3 billion. Higher pricing and incremental revenue from glo was offset by negative mix effects. This was mainly as the result of strong growth in lower-priced markets including Bangladesh and significant industry volume decline and down-trading in Malaysia and Pakistan.

按固定貨幣計算的調整後收入增長 1.3% 至 43 億英鎊。來自 glo 的更高定價和增量收入被負面的混合效應所抵消。這主要是由於包括孟加拉國在內的低價市場的強勁增長以及馬來西亞和巴基斯坦的行業銷量大幅下降和交易量下降所致。

Although there was significantly increased investment behind glo in Japan and South Korea, adjusted profit on a constant basis was up 2.7% at GBP 1.7 billion, driven by revenue growth and cost savings. At current rates, adjusted revenue was up by 5.7% and profit was 7.7% higher, benefiting from foreign exchange tailwinds, notably the relative movements in the U.S. dollar and the euro against the Japanese yen.

儘管 glo 在日本和韓國的投資顯著增加，但在收入增長和成本節約的推動下，調整後利潤持續增長 2.7% 至 17 億英鎊。按當前匯率計算，調整後收入增長 5.7%，利潤增長 7.7%，受益於外匯順風，尤其是美元和歐元兌日元的相對波動。

Australia delivered a good performance, growing profit and share.

澳大利亞表現良好，利潤和份額不斷增長。

In Indonesia, volume was lower, in line with the overall market decline. However, with strong volume growth of 13%, Dunhill and Lucky Strike now represent 97% of our portfolio volume. Profitability increased, driven by cost savings and business efficiencies.

在印度尼西亞，成交量較低，與整體市場下滑一致。然而，隨著 13% 的強勁銷量增長，登喜路和 Lucky Strike 現在占我們投資組合銷量的 97%。在成本節約和業務效率的推動下，盈利能力有所提高。

Bangladesh had an outstanding performance, with strong volume, profit and share growth.

孟加拉表現突出，銷量、利潤和份額增長強勁。

Market share across the region was up 60 basis points, with a good performance in the Global Drive Brands, which grew volume by 1.5%.

整個地區的市場份額增加了 60 個基點，全球驅動品牌表現良好，銷量增長了 1.5%。

The Americas faced a challenging macroeconomic environment in 2017, impacting consumption across the region and leading to a significant down-trading in growth and illicit trade. Despite this, at constant rates, adjusted revenue in the region grew 11% and adjusted profit grew 10% driven by Canada, Mexico, Chile, Venezuela and Colombia, more than offsetting decline in Brazil.

美洲在 2017 年面臨充滿挑戰的宏觀經濟環境，影響了整個地區的消費，並導致增長和非法貿易大幅下滑。儘管如此，在加拿大、墨西哥、智利、委內瑞拉和哥倫比亞的推動下，該地區的調整後收入增長了 11%，調整後的利潤增長了 10%，遠遠抵消了巴西的下降。

Volume was down by 5%, largely due to down-trading and industry contraction in Brazil and Argentina and the growth of illicit trade in Chile.

交易量下降了 5%，主要是由於巴西和阿根廷的貿易下滑和行業收縮以及智利非法貿易的增長。

In Brazil, volume decline rates moderated compared to previous years as our low-priced brand, Minister, captured a fair share of the down-trading.

在巴西，與往年相比，銷量下降率有所放緩，因為我們的低價品牌“部長”在下跌交易中佔據了相當大的份額。

Canada delivered its fifth consecutive year of profit growth, driven by successful pricing and good cost control. Regional market share was flat, with growth in Mexico, Argentina, Colombia and Chile offset by lower share in Brazil.

在成功的定價和良好的成本控制的推動下，加拿大實現了連續第五年的利潤增長。區域市場份額持平，墨西哥、阿根廷、哥倫比亞和智利的增長被巴西較低的份額所抵消。

The GDBs performed well across the region, with volume up by 10.9%. This was driven by the good performance of Pall Mall in Mexico, Lucky Strike in Colombia as well as successful migrations, including Free to Kent in Brazil and Viceroy to Rothmans in Argentina.

GDB 在整個地區表現良好，交易量增長了 10.9%。這得益於墨西哥 Pall Mall 的良好表現、哥倫比亞的 Lucky Strike 以及成功的遷移，包括巴西的 Free 到 Kent 和阿根廷的 Viceroy 到 Rothmans。

Western Europe delivered an excellent set of results as economic sentiment in the euros had improved to reach the highest levels since January 2001. Strong performances in Germany, Spain, Poland and Romania were offset by excise absorption in France and Italy. As a result, revenue grew 0.9% on a constant organic basis and was up 7.6% at current rates, mainly due to the relative weakness of sterling to the euro.

西歐取得了一系列出色的業績，以歐元計價的經濟情緒有所改善，達到 2001 年 1 月以來的最高水平。德國、西班牙、波蘭和羅馬尼亞的強勁表現被法國和意大利的消費稅吸收抵消。因此，收入持續有機增長 0.9%，按當前速度增長 7.6%，主要是由於英鎊兌歐元相對疲軟。

Volume in the region was up 1.7%, benefiting from M&A. Organic volume was down only 0.8% as growth in Spain, Romania, Portugal, Poland and Hungary was offset by lower volume in Italy and Greece. This significantly outperformed the industry, which we estimate was down more than 2%.

得益於併購，該地區的銷量增長了 1.7%。由於西班牙、羅馬尼亞、葡萄牙、波蘭和匈牙利的增長被意大利和希臘的銷量下降所抵消，有機銷量僅下降了 0.8%。這明顯優於行業，我們估計該行業下降了 2% 以上。

Regional share was up 30 basis points, driven by the GDBs, which were up 8.9%. This was driven by good performances by Rothmans in Poland, Lucky Strike in Spain as well as successful migrations in Germany and Poland.

在 GDB 增長 8.9% 的推動下，區域份額上升了 30 個基點。這得益於羅斯曼在波蘭的出色表現、西班牙的 Lucky Strike 以及在德國和波蘭的成功遷移。

Turning now to operating margin. Whilst the margin clearly benefited from the inclusion of Reynolds, I'm pleased to say that after 2 years of reported decline, we've once again returned to operating margin growth. Underlying margin improved by 110 basis points. This was offset by an increase in NGP investment of 70 basis points, leaving adjusted organic operating margin up by 40 basis points, only just outside our target of 50 to 100 basis points per annum. This was driven by ongoing cost savings and efficiencies from the implementation of TaO and OneSAP. It is also after the absorption of a continuing transactional foreign exchange headwind estimated at around 1% of operating profit and after the significant additional investment behind NGPs.

現在轉向營業利潤率。雖然利潤率明顯受益於雷諾茲的加入，但我很高興地說，在報告了 2 年的下降之後，我們再次恢復了營業利潤率的增長。基礎利潤率提高 110 個基點。這被 NGP 投資增加 70 個基點所抵消，調整後的有機營業利潤率提高了 40 個基點，僅略超出我們每年 50 至 100 個基點的目標。這是由實施 TaO 和 OneSAP 帶來的持續成本節約和效率推動的。這也是在吸收了估計約為營業利潤 1% 的持續交易外匯逆風以及 NGP 背後的大量額外投資之後。

M&A in Western Europe is diluted from a reduced margin by 20 basis points.

西歐的併購從減少的利潤率中被稀釋了 20 個基點。

Finally, the inclusion of 5 months of Reynolds added 250 basis points to margin, leaving our full year adjusted operating margin at 39.9%.

最後，包括 5 個月的雷諾數為利潤率增加了 250 個基點，使我們全年調整後的營業利潤率為 39.9%。

Although we continue to invest behind the rollout of NGPs and expect 2018 to be a heavy investment year, we remain confident of delivering 50 to 100 basis points of margin improvement on average over the years.

儘管我們繼續為 NGP 的推出進行投資，並預計 2018 年將是一個重大投資年，但我們仍然有信心在這些年來平均實現 50 至 100 個基點的利潤率提升。

As I said earlier, reported EPS benefited significantly from the accounting treatment of the Reynolds American acquisition. A reconciliation from 2017 reported EPS to both 2016 reported EPS and 2017 adjusted diluted EPS is available in the supplementary slides.

正如我之前所說，報告的每股收益顯著受益於雷諾美國收購的會計處理。補充幻燈片中提供了 2017 年報告的每股收益與 2016 年報告的每股收益和 2017 年調整後的稀釋每股收益的對賬。

As you can see here, adjusted diluted EPS of 284.4p at current rates was up 15%, driven by growth in operating profit, the contribution from Reynolds, good results from ITC and a 5% translational currency tailwind.

正如您在此處看到的，在營業利潤增長、雷諾茲的貢獻、ITC 的良好業績和 5% 的換算貨幣順風的推動下，調整後的攤薄後每股收益為 284.4 便士（按當前匯率計算）增長了 15%。

Net finance costs were up significantly as a result of financing the Reynolds transaction. However, the average cost of debt was marginally lower. We expect net finance costs in 2018 to be around GBP 1.5 billion.

由於雷諾茲交易的融資，淨財務成本顯著上升。然而，平均債務成本略低。我們預計 2018 年的淨財務成本約為 15 億英鎊。

Despite good results from ITC, the contribution from our associates decreased due to the inclusion of only 7 months of Reynolds.

儘管 ITC 取得了良好的業績，但由於僅包括 7 個月的雷諾，我們的員工的貢獻有所減少。

Our effective tax rate was slightly lower than in 2016 at 29.7%.

我們的有效稅率略低於 2016 年的 29.7%。

Noncontrolling interests were marginally higher as profit growth in Algeria and Vietnam was offset by decline in Malaysia.

由於阿爾及利亞和越南的利潤增長被馬來西亞的下滑所抵消，非控股權益略有增加。

I usually give some guidance around the expected full year tax rate. With a full 12 months inclusion of Reynolds and the reduction in U.S. tax rates, I would expect a tax rate for the group of around 27% in 2018.

我通常會就預期的全年稅率給出一些指導。包括雷諾茲在內的整整 12 個月和美國稅率的降低，我預計 2018 年該集團的稅率約為 27%。

On currencies, if rates were to stay where they are today, the translational FX impact, including a full year of Reynolds, would be a headwind of around 9% on operating profits and a headwind of around 7% on EPS. We would also continue to have a small headwind on transactional FX.

在貨幣方面，如果利率保持在今天的水平，包括全年雷諾茲在內的轉化外匯影響將對營業利潤造成約 9% 的不利影響，對每股收益造成約 7% 的不利影響。我們還將繼續在交易外匯方面遇到小阻力。

We've always said that we don't believe it is appropriate to strip out transactional FX from constant currency performance and only adjusts for translational FX in our numbers. However, in recent years, the scale and speed of devaluation has generated such a significant headwind that comparisons with other companies treating transactional FX differently risk being misleading. As a result, we were forced to quote an estimated impact from transactional currency movements, included in our constant currency figures. Now that transactional headwind has abated to more normal levels, we will no longer be separating it out in our constant currency analysis.

我們一直說，我們認為將交易外匯從恆定貨幣表現中剔除是不合適的，而只在我們的數據中調整轉換外匯。然而，近年來，貶值的規模和速度產生瞭如此巨大的阻力，以至於與其他以不同方式對待交易外彙的公司進行比較可能會產生誤導。因此，我們被迫引用交易貨幣變動的估計影響，包括在我們的固定貨幣數據中。現在交易逆風已經減弱到更正常的水平，我們將不再在我們的恆定貨幣分析中將其分開。

Now on to cash flow. Overall, adjusted cash generated from operations was GBP 3,282 million, which is GBP 167 million higher than last year. This was mainly due to higher operating profit driven by the contribution from Reynolds offset by an early MSA payment of $1.8 billion, GBP 1.4 billion, made by Reynolds in December of 2017, as it is deductible at the 35% tax rate.

現在談談現金流。總體而言，調整後經營產生的現金為 32.82 億英鎊，比去年增加 1.67 億英鎊。這主要是由於 Reynolds 的貢獻被 Reynolds 於 2017 年 12 月支付的 18 億美元（14 億英鎊）的早期 MSA 付款所抵消，從而提高了營業利潤，因為它可以按 35% 的稅率扣除。

As a result, operating cash flow conversion was lower than last year at 78.6%. However, excluding this early MSA payment, operating cash flow conversion would have been approximately 96%.

因此，經營現金流轉換率低於去年的 78.6%。但是，如果不包括這筆早期的 MSA 付款，運營現金流轉換率約為 96%。

Depreciation is the main component of noncash items. Excluding the MSA payment, working capital outflows of GBP 93 million were significantly lower than in 2016, which was an outflow of GBP 254 million.

折舊是非現金項目的主要組成部分。不計 MSA 付款，營運資金流出 9300 萬英鎊，顯著低於 2016 年流出的 2.54 億英鎊。

Net capital expenditure was GBP 208 million higher than in 2016, largely due to investment in NGPs.

淨資本支出比 2016 年高出 2.08 億英鎊，主要是由於對 NGP 的投資。

We expect gross CapEx in 2018 to be around GBP 1.1 billion.

我們預計 2018 年的總資本支出約為 11 億英鎊。

Net interest paid was higher at GBP 1,004 million due to the upfront costs relating to financing arrangements for the acquisition of Reynolds.

由於與收購 Reynolds 的融資安排相關的前期成本，支付的淨利息為 10.04 億英鎊。

Tax outflows of GBP 1,675 million, including approximately GBP 550 million of tax flows relating to the U.S. together with slightly lower payments for the rest of BAT due to the timing of payments. Higher dividend payments to minorities are attributable to higher profits in Malaysia in 2016. This delivers adjusted cash generated from operations of GBP 3,282 million.

稅收流出 16.75 億英鎊，包括與美國相關的約 5.5 億英鎊稅收流出，以及由於支付時間而對 BAT 其餘部分的支付略有減少。向少數族裔支付更高的股息歸因於 2016 年馬來西亞的更高利潤。這帶來了 32.82 億英鎊的調整後經營現金。

Turning now to financing and shareholder returns. We ended the year with net debt to EBITDA at 4x on an annualized basis, 12 months of Reynolds, as anticipated at the time of the deal. This was 5.3x on an accounting basis. We continue to target reducing this to around 3x by 2019, returning to the upper end of the 1.5x to 2.5x net debt-to-EBITDA corridor in the medium term.

現在轉向融資和股東回報。正如交易時預期的那樣，我們在 12 個月雷諾茲年化基礎上的淨債務為 EBITDA 的 4 倍。在會計基礎上，這是 5.3 倍。我們的目標是到 2019 年將這一比例降至 3 倍左右，在中期內回到 1.5 至 2.5 倍淨債務與 EBITDA 走廊的上限。

Our target credit rating remains BBB+, Baa1 with S&P and Moody's, with the rating currently standing at BBB+, Baa2. The rating is driven by our net debt-to-EBITDA ratio, and we are focused on managing this down.

標普和穆迪的目標信用評級仍為 BBB+、Baa1，目前評級為 BBB+、Baa2。該評級由我們的淨債務與 EBITDA 比率驅動，我們專注於管理這一下降。

We continue to target a dividend payout ratio of 65%. As part of the transition to quarterly dividends, we have kept the payout ratio higher than our target of 69% to equalize cash payments but intend to gradually return to 65% over time.

我們繼續以 65% 的派息率為目標。作為向季度股息過渡的一部分，我們將派息率保持在高於 69% 的目標以平衡現金支付，但打算隨著時間的推移逐漸恢復到 65%。

This remains a floor, not a ceiling. In the face of currency translation headwinds, we will increase the payout ratio so our sterling shareholders receive an increased dividend based on good constant currency performance, as we have done historically.

這仍然是地板，而不是天花板。面對貨幣換算的不利因素，我們將提高派息率，以便我們的英鎊股東根據良好的恆定貨幣表現獲得增加的股息，正如我們以往所做的那樣。

So in summary, the business performed very well in 2017. There were a number of one-off items relating to the Reynolds acquisition, which benefited reported results. Excluding these, constant organic adjusted revenue grew 3%, profit, 4% and adjusted diluted EPS, 10%, exceeding our high single-figure earnings growth target.

綜上所述，2017 年業務表現非常好。有多項與雷諾茲收購有關的一次性項目，受益於報告的結果。排除這些因素，調整後的持續有機收入增長 3%，利潤增長 4%，調整後的攤薄每股收益增長 10%，超過了我們的高個位數盈利增長目標。

We continued to outperform the market and have once again grown share, powered by the continued strength of our brand portfolio. With a 15% increase in the dividend backed by EPS growth, we have demonstrated our continued commitment to growing shareholder returns over the longer term.

在我們品牌組合的持續實力的推動下，我們繼續跑贏市場並再次擴大份額。在每股收益增長的支持下，股息增加了 15%，我們已經證明了我們對長期增加股東回報的持續承諾。

Looking into 2018, the pricing environment remains competitive. Volume shipment phasing in certain markets, including the GCC, and the timing of NGP investments means we expect adjusted profit growth to be skewed to the second half, as in previous years.

展望 2018 年，定價環境仍然具有競爭力。包括海灣合作委員會在內的某些市場的批量出貨量以及 NGP 投資的時機意味著我們預計調整後的利潤增長將與往年一樣偏向下半年。

However, we are confident of another good year of constant currency adjusted earnings growth, with the benefit of the U.S. tax reform providing additional support for shareholder returns and helping to fund significantly increased investment in NGPs.

然而，我們對固定匯率調整後收益增長的又一個好年充滿信心，受益於美國稅制改革，為股東回報提供了額外支持，並有助於為顯著增加的 NGP 投資提供資金。

Thank you. And I'll now hand you back to Nicandro.

謝謝你。我現在把你交還給尼坎德羅。

Thank you, Ben. 2017, was a year which changed the shape of the group. We invested heavily into NGPs with excellent results, and our combustible business has continued to perform strongly. And this is expected to continue in 2018. It is an exciting time for BAT, and we remain confident in our ability to continue to deliver high single-figure earnings growth in the years to come. Thank you.

謝謝你，本。 2017年，是改變集團格局的一年。我們大力投資 NGP，取得優異成績，可燃業務持續強勁表現。預計這種情況將在 2018 年繼續。對於 BAT 來說，這是一個激動人心的時刻，我們對未來幾年繼續實現高個位數盈利增長的能力充滿信心。謝謝你。

And I'll open up for questions for those of you in the room.

我會為在座的你們提出問題。

Who'd like to start? You will need a microphone, because the sound system is not working that well. So if you guys can wait for a microphone to get to you.

谁愿意開始？您將需要一個麥克風，因為音響系統工作不那麼好。所以，如果你們可以等待麥克風來找你。

Alberto Lopez from JPMorgan. A couple of questions from my side. First, how should we think about the investments that you are doing this year beyond 2018? Is that some investments go [off place] as we go into '19, '20? Also, if can you give updated details on what exactly are you spending. Is it in terms of device discounts, is it infrastructure, store rollout, et cetera? And then also, I was keen to get your views on Japan since THP is doing very well. What would be your views on how big can THP be in the total Japan market this year? And what would you aspire to capture from that share of the segment?

摩根大通的阿爾貝托·洛佩茲。我這邊有幾個問題。首先，我們應該如何看待您今年在 2018 年之後所做的投資？當我們進入 19 和 20 年時，一些投資是否會 [off place]？此外，您能否提供有關您具體花費的最新詳細信息。是在設備折扣方面，還是基礎設施、商店推出等方面？此外，由於 THP 做得很好，我很想听聽你對日本的看法。您對今年 THP 在整個日本市場的規模有何看法？您希望從該細分市場中獲得什麼？

That's a lot of questions. So I'm going to answer all. So in terms of investment beyond for 2018, as we just mentioned, we are going to use part of the U.S. tax reform for additional investment in BAT. So I expect that, in all, you have an additional, just in THP space, THP and vaping, mainly THP, another GBP 500 million for 2018. So it's a huge investment to allow us to roll out to at least 14 markets for THP and several others for vaping in 2018, because we are capacity-constrained, as you just mentioned. The breakdown of investment in terms of stores and so on and so forth, I don't have this here, but I can supply this later for you. No problem at all. We don't usually disclose the investment in this kind of detail, but I'm sure that you'll find a way of a percentage base to tell you, whatever you got. In terms of Japan, and your question was about Japan, how big the segment is. Well, as you know, the segment is quite substantial in Japan. It's very difficult to predict how it's going to be in 1 year time. But do I see this growing for 30% of the segment of the month? Yes, I see this growing for 30% of the month. I cannot emphasize on how much -- how long it's going on to take it. Talking a little bit about our platforms in Japan, you know that we are capacity-constrained. I think that the numbers are showing that. Despite being capacity constrained, since the national launch in October, we are providing -- we are supplying one device per store per week on a national basis in Japan. And even though, we -- our market share is growing substantially. In December, it was 3.3%. The latest reading that you have for the end of January was 4.1%. So it's growing extremely well. And your question is, how high is high? Because nowadays, we have around 20% of the segment despite the huge constraints that you have in terms of supply and despite the competition has not been constrained, they are unconstrained. I think that you can make a proxy of Sendai. If you look at Sendai, nowadays, our market share -- in Sendai, we are 1/3 of the market, and we are constrained there as well. In the first 6 months of our launch in Sendai, first half of last year, in which we were providing 3 devices per store per week, we got from 0 to 8% in 6 months. But because of the national launch, the launching into 4 prefectures in July, and the national launch, we had to scale it back in Sendai. So we moved from 3 devices per store per week to one device per store per week. And of course, our market share growth slowed from 8% to 10% nowadays. Still, 1/3 of the market. So I think that gives you an idea of how strong the proposition is. Another factor that I'd like to mention is that, as I mentioned early on, I think that the expertise and innovation that we have for combustible can be applied for the consumables. We launched 4 new flavors in December. Two months later, those 4 new flavors, they are 40% of our volume, and the widest range of flavors in the market nowadays is with BAT. But with the constraints that we have in the device, it's very difficult to grow even faster than we are growing. But I think that just shows the strength. And the other important piece of information, if you take out the international launch in October, 60% of the growth of the segment is coming from us despite the device constraint. And that inflow of consumers is higher to our product than the competition's product inside the THP category. So it gives you some signals that we are in a very strong position in terms of product, in terms of device. And I think with the pipeline that we have coming this year, you have glo 2.2 coming in July, when we'll be unconstrained, and probably it's the one that we're going to use for the rollout. And we have the mini coming at the end the year. And we have new flavors coming in the second half as well. I think that you get a very strong position to grow this category beyond the numbers that has been estimated. That's why I said in spite in October, given the tide, of GBP 1 billion for 2018, I think that it is going to be substantially higher this year. A long answer, but that was a long question, anyway. Yes?

這是很多問題。所以我要全部回答。因此，就 2018 年以後的投資而言，正如我們剛才提到的，我們將利用美國稅制改革的一部分對 BAT 進行額外投資。所以我預計，總而言之，你有一個額外的，只是在 THP 領域，THP 和電子煙，主要是 THP，2018 年還有 5 億英鎊。所以這是一項巨大的投資，讓我們能夠將 THP 推廣到至少 14 個市場和其他幾個人在 2018 年使用電子煙，因為我們的容量有限，正如你剛才提到的。店舖等方面的投資明細，我這裡沒有，以後可以給你。完全沒有問題。我們通常不會透露這種細節的投資，但我相信你會找到一種以百分比為基礎的方式來告訴你，無論你得到什麼。就日本而言，你的問題是關於日本的，這個細分市場有多大。好吧，如您所知，該細分市場在日本相當可觀。很難預測 1 年後會如何。但是我看到這個月的部分增長了 30% 嗎？是的，我看到這個月增長了 30%。我無法強調要花多長時間。稍微談一下我們在日本的平台，你就知道我們的產能有限。我認為數字表明了這一點。儘管產能受限，但自 10 月在全國推出以來，我們一直在提供——我們每週在日本全國范圍內為每家商店供應一台設備。儘管如此，我們 - 我們的市場份額正在大幅增長。 12月為3.3%。 1 月底的最新讀數是 4.1%。所以它的生長非常好。你的問題是，多高是多高？因為如今，儘管您在供應方面存在巨大限制，並且儘管競爭沒有受到限制，但我們仍然擁有大約 20% 的細分市場，但它們是不受限制的。我認為您可以代理仙台。如果你看看仙台，現在我們的市場份額——在仙台，我們是市場的 1/3，我們也在那裡受到限制。在去年上半年我們在仙台推出的前 6 個月中，我們每週為每家商店提供 3 台設備，我們在 6 個月內從 0% 提高到 8%。但是因為全國發射，7月4都道府縣的發射，全國發射，我們不得不在仙台縮小規模。因此，我們從每週每家商店 3 台設備轉移到每週每家商店一台設備。當然，如今我們的市場份額增長從 8% 放緩至 10%。仍然是市場的 1/3。所以我認為這讓你知道這個提議有多強大。我想提到的另一個因素是，正如我前面提到的，我認為我們在可燃物方面的專業知識和創新可以應用於消耗品。我們在 12 月推出了 4 種新口味。兩個月後，這 4 種新口味，它們占我們銷量的 40%，而現在市場上最廣泛的口味是 BAT。但是由於我們在設備中的限制，很難以比我們的增長速度更快的速度增長。但我認為這只是顯示了實力。另一個重要的信息是，如果排除 10 月份的國際發布，儘管設備限制，該細分市場 60% 的增長來自我們。而且，我們產品的消費者流入量高於 THP 類別中的競爭對手產品。因此，它給您一些信號，表明我們在產品和設備方面處於非常有利的地位。我認為隨著我們今年即將推出的管道，您將在 7 月推出 glo 2.2，屆時我們將不受限制，並且可能是我們將用於推出的版本。我們將在年底推出迷你版。下半年我們也有新口味。我認為您將獲得一個非常強大的地位，可以使這一類別的增長超出估計的數字。這就是為什麼我在 10 月份表示，儘管考慮到 2018 年的 10 億英鎊的大潮，但我認為今年會大幅上漲。一個很長的答案，但無論如何，這是一個很長的問題。是的？

It's Alicia Forry from Investec. My question is on the EEMEA region, which was perhaps one of the weaker areas this year. Do you expect the down-trading in Russia, the impact to the excise in GCC, foreign exchange headwinds on the COGS in that region to persist again in 2018, i.e., should we see another year of EBIT being under pressure in this region? And then secondly, I was interested to hear a little bit more about the THP launch in Russia. You mentioned it briefly in the presentation, but any additional color would be appreciated.

是 Investec 的 Alicia Forry。我的問題是關於 EEMEA 地區，這可能是今年較弱的地區之一。您是否預計俄羅斯的下行交易、對 GCC 消費稅的影響、該地區 COGS 的外匯逆風將在 2018 年再次持續存在，即我們是否應該看到該地區的息稅前利潤又面臨一年的壓力？其次，我有興趣了解更多關於 THP 在俄羅斯推出的信息。您在演示文稿中簡要提到了它，但任何其他顏色將不勝感激。

Okay. Let me start in the EEMEA in general. It was a difficult year for 2017 for a lot of different reasons. One of those, for example, we saw in Russia excise absorption. It was a very competitive price environment there. It seems that things are getting better for this year. So at least for the price environment in Russia, you see a much better environment. The second one was a substantial excise increase in the GCC. That is a very important market for us, not only for BAT, for other players as well, in which the excise increase demanded us to double price, and one of the reasons that you have a hit in turnover last year, because turnover went down dramatically in the second half of last year in the GCC. And I think that, probably, those are the 2 main reasons for EEMEA being under pressure. And I think that I have to mention as well the transactions headwinds that we had in Russia last year that affected COGS, as you've mentioned. We don't see transactions headwinds for 2018 at the same level in '17. So it's going to ease on that side. For BAT as a whole, we think transactions headwinds is going to be 1% only for 2018, a much better position than it was in '17 and even better than in '16. And if it is going to be at that range, we are now going to report back numbers with and with and without transaction, because BAT doesn't believe that's the right way to report anyway. So that's the COGS element. I think that things should be a better environment for '18, but it's too early to call. So we have to wait a little bit, but it seems that conditions are improving. But don't forget that in the GCC, we are comparing 12 months with a special excise increase against 6 months in the prior year. It's going to affect '18 anyway, not only for us, but all the competitors. But I think the environment is better.

好的。讓我從一般的 EEMEA 開始。由於許多不同的原因，2017 年是艱難的一年。其中之一，例如，我們在俄羅斯看到了消費稅吸收。那裡的價格環境非常有競爭力。看來今年的情況正在好轉。所以至少對於俄羅斯的價格環境，你會看到一個更好的環境。第二個是海灣合作委員會的消費稅大幅增加。這對我們來說是一個非常重要的市場，不僅對英美煙草公司，對其他參與者也是如此，其中消費稅的增加要求我們將價格翻倍，這也是去年營業額受到打擊的原因之一，因為營業額下降了去年下半年在海灣合作委員會中戲劇性地出現。我認為，這可能是 EEMEA 面臨壓力的兩個主要原因。正如你所提到的，我認為我還必須提到去年我們在俄羅斯遇到的影響 COGS 的交易逆風。我們認為 2018 年的交易逆風與 17 年相同。所以這方面會有所緩解。對於整個 BAT，我們認為 2018 年的交易逆風將僅為 1%，比 17 年要好得多，甚至比 16 年還要好。如果它要在那個範圍內，我們現在將報告有交易、有交易和沒有交易的數字，因為 BAT 無論如何都不認為這是正確的報告方式。這就是 COGS 元素。我認為對於 18 年來說，事情應該是一個更好的環境，但現在說還為時過早。所以我們必須稍等片刻，但情況似乎正在改善。但不要忘記，在 GCC 中，我們將 12 個月與去年的 6 個月進行了特別消費稅增長的比較。無論如何，這將影響 18 年，不僅對我們，而且對所有競爭對手。但是我覺得環境更好。

Remember the selling prices had to double in the GCC after the excise increase, so it's been very disruptive to the market.

請記住，在提高消費稅後，海灣合作委員會的售價必須翻倍，所以這對市場非常具有破壞性。

Yes, the decline in revenue -- in net revenue there was 26%, I think, in the second half because of the unit size and down-trading the market. But we should never lose focus of a good (inaudible). Our market share is, I think that's 80 to 10 basis points -- 80 to 100 basis points higher. We had one of the most important segments in the GCC in the value for money. Out of this, we did extremely well with Pall Mall there, and I think that our market share has increased substantially there -- substantially. So when the market picks up again, I think that we'll be in a very good position there. So that's the GCC. Regarding the launch in Russia, it's 6 weeks, so it's too early to call. And we are capacity-constrained as well. We had launched at the end of last year in additional 4 markets, and all of them, like Romania, it's 3 weeks after launch. In Russia, it's 6 weeks after launch. So it's too early to call. But the initial reading of the market is that the markets consuming everything that we have in stores. One device per week per store, and we are selling everything. So it's going very well. We have extremely limited distribution because our focus for 2017 has been in Japan. So we are giving all the supply that we have for Japan because it's a more developed market. So the other markets, like Korea, like Russia, like Romania, we have very limited supply. That's going to be lifted in the second half of this year. I was discussing this earlier on with some of you. It's going to -- we'll be in full supply around March and April, but we have to build capacity in order to be able to respond to the marketing needs -- market needs. So around May and June, we'll be fully unconstrained. And I think -- and that's the reason that we are scheduling all-day launches in the markets at the beginning of the second half of the year, third quarter -- probably third quarter of the year. And then you'll see unconstrained supply in places like Russia, Romania, South Korea and so on and so forth. Then you'll have a better reading about the performance of the brand. But if you look at Japan, as I said, as a proxy, with the numbers that they gave early on, it gives the rationale for the confidence. So That's why I said that the GBP 1 billion, we should substantially exceed, because it's beyond our expectations of the result in Japan. Adam?

是的，收入下降了——我認為下半年的淨收入下降了 26%，原因是單位規模和市場低迷。但我們永遠不應該失去對好的（聽不清）的關注。我們的市場份額是，我認為是 80 到 10 個基點——高出 80 到 100 個基點。在物有所值方面，我們擁有 GCC 中最重要的部分之一。其中，我們在那裡與 Pall Mall 合作做得非常好，我認為我們的市場份額在那里大幅增加 - 大幅增加。因此，當市場再次回暖時，我認為我們將在那里處於非常有利的位置。這就是海灣合作委員會。關於在俄羅斯的發射，現在是 6 週，所以現在打電話還為時過早。我們也受到能力限制。去年年底，我們在另外 4 個市場推出了產品，所有這些市場，比如羅馬尼亞，都在推出後 3 週。在俄羅斯，發射後 6 週。所以現在打電話還為時過早。但市場的初步解讀是市場消耗了我們在商店中擁有的一切。每家商店每週一台設備，我們什麼都賣。所以進展非常順利。我們的分銷非常有限，因為我們 2017 年的重點一直在日本。因此，我們正在為日本提供我們所有的供應，因為它是一個更發達的市場。所以其他市場，比如韓國、俄羅斯、羅馬尼亞，我們的供應非常有限。這將在今年下半年取消。我之前和你們中的一些人討論過這個問題。它將——我們將在 3 月和 4 月左右全面供應，但我們必須建立能力以便能夠響應營銷需求——市場需求。所以在五六月左右，我們將完全不受約束。而且我認為 - 這就是我們在今年下半年，第三季度開始在市場上安排全天發布的原因 - 可能是今年第三季度。然後你會看到俄羅斯、羅馬尼亞、韓國等地的供應不受限制。然後，您將對品牌的表現有更好的了解。但是，正如我所說，如果您將日本視為一個代表，以及他們早期給出的數字，它就會給出信心的理由。所以這就是為什麼我說我們應該大幅超過 10 億英鎊，因為這超出了我們對日本結果的預期。亞當？

Can I ask 3 questions? First of all, you talk about device constraints. Just within your tobacco heating sales, what percentage, roughly, is coming from devices versus the renewables? And related to that, for each sort of consumer you have, how many devices does he or she need to be a glo consumer? So that would be one question, and then I have a couple of follow-ups.

我可以問3個問題嗎？首先，您談論設備約束。僅在您的煙草加熱銷售中，來自設備與可再生能源的大致百分比是多少？與此相關的是，對於您擁有的每種消費者，他或她需要多少設備才能成為全球消費者？所以這將是一個問題，然後我有幾個跟進。

I think the relationship between device and consumers is 1 to 3 in terms of revenue. The percent of device in our sales, to be honest, can I go back to you at the end of the session? And I'll give you a more appropriate number? If not, I will give a very rounded number here. And I will go and get back to you.

我認為設備和消費者之間的關係在收入方面是 1 比 3。老實說，我們銷售中的設備百分比，我可以在會議結束時回复您嗎？我會給你一個更合適的數字？如果沒有，我會在這裡給出一個非常四捨五入的數字。我會去回复你。

Moving on to the U.S., as you look forward, is your priority really operating profit growth, or is it market share progression? In other words, would you be happy in 2018 to have flat share but nice growth of profit? Or would you -- if you have a choice, would you prefer share growth but no profit growth if you had to choose between those 2?

繼續前進到美國，正如您所期待的那樣，您的首要任務是真正的營業利潤增長，還是市場份額的增長？換句話說，2018年份額持平但利潤增長良好，你會高興嗎？或者你會 - 如果你有一個選擇，如果你必須在這兩者之間做出選擇，你會更喜歡共享增長而不是利潤增長嗎？

Okay. We are in the business of making money, Adam. We are not in the business of making market share of volume. Market share of volume, our profits should make money. So I don't think that you have this choice, it's either go for market share or go for money. We try to have the right brands in the market with the right consumer propositions so that you drive our market share, that you drive volume, that you drive money. So I don't think that you start to think, okay, let's have less market share here to have a little bit more money. That's not the discussion that we have inside the company. So that's not really at top of my mind. But I think that what BAT has shown in the last years, and if you look at the combustible business, the business model that we have is to have more new innovations in the markets, and I think that we have done extremely well with our portfolio for that. We have been declining in the last years much less than the industry, and this year was not different, driven by the GDBs. The GDBs have grown 600 basis points in 6 years. It's a fantastic performance. And this has helped us to overdeliver the financial results. So that's the strategy for the world and the strategy for the U.S. And it happened with the results of Reynolds last year. They had flat share in the first half. In the second half, they grew -- they had a very good growth in terms of market share. But we'll be competitive in pricing.

好的。我們是在賺錢的生意，亞當。我們不從事製造市場份額的業務。市場份額的量，我們的利潤應該賺錢。所以我不認為你有這個選擇，要么是為了市場份額，要么是為了錢。我們試圖以正確的消費者主張在市場上擁有正確的品牌，以便您推動我們的市場份額，推動銷量，推動資金。所以我不認為你會開始想，好吧，讓我們在這裡擁有更少的市場份額來獲得更多的錢。這不是我們在公司內部進行的討論。所以這並不是我最關心的。但我認為 BAT 在過去幾年中所展示的，如果你看看可燃業務，我們擁有的商業模式是在市場上有更多新的創新，我認為我們的產品組合做得非常好為了那個原因。在過去幾年中，我們的下降幅度遠低於行業，今年也不例外，在 GDB 的推動下。 GDB 在 6 年內增長了 600 個基點。這是一場精彩的表演。這有助於我們超額交付財務業績。這就是世界的戰略和美國的戰略。它發生在去年雷諾茲的結果中。他們在上半場的份額持平。下半年，它們增長了——就市場份額而言，它們的增長非常好。但我們將在定價方面具有競爭力。

And then the final question. If I think about the rest of the world in the round, so not the U.S., not Tobacco Heating Products, in 2015, 2016, you had over 5% organic sales growth. This year, it was 2 point something, which would imply that it's slowed down. And I was just wondering, do you think that slowdown is temporary, or do you think it's permanent? And if we think out the next few years, we're getting back to the sort of 5%, again, excluding Tobacco Heating, excluding the U.S.?

然後是最後一個問題。如果我全面考慮世界其他地區，而不是美國，而不是煙草加熱產品，在 2015 年和 2016 年，你的有機銷售額增長超過 5%。今年，它是 2 點，這意味著它已經放慢了速度。我只是想知道，你認為放緩是暫時的，還是你認為它是永久性的？如果我們考慮未來幾年，我們會再次回到 5%，不包括煙草加熱，不包括美國？

I don't think that you can exclude the U.S yet, because you have to make comparison. I cannot -- I don't think that you have to -- you can exclude THP. THP and combustible, they are categories in which the migration is 100%. So when you leave the combustible category, you go into THP. I don't think that you can exclude that. Then you start saying, let's exclude Japan or let's exclude Russia. You cannot do that. So I have to look that both things together. If not, their management becomes very, very difficult, because the migration for one category is 100% to the other category. And at the end of the day, it's tobacco. So if you look at both categories, because it's how I like to read it, and I think that's the right way to read it, if you look at the price mix, that's the most important thing that we should be discussing here. The price mix of last year was 5.5%. And if you look at the price mix of the last 3 years on average, it was 5.6%. Our matrix is 4% to 6%. It was in the high end of the matrix. So I think the price mix in 2017, despite everything that I said, was solid, was quite good. Of course, there are some concerns, and I have some concerns, because in 2016, the price mix was a little bit higher than usual. It was 6.5%, 6.7%. And there was a decline for 2017. But then a good rationale for that, as I said before, we've had some excise absorption because of competitive environment in places like Italy, France, Russia. We had substantial excise increase that was not passed through price in 2016 in places like Brazil, Malaysia. And you had the issue that I mentioned, turnover, in places like the GCC. Well, despite of that, the price mix was 5.5%. It was at the high end of our matrix. It was quite solid. And it was on par with the average of the last 3 years. And if you take 5 years, you'll see that it was even a little bit higher. So it's not bad. It's very good.

我認為你還不能排除美國，因為你必須進行比較。我不能——我不認為你必須——你可以排除 THP。 THP 和可燃物，它們是遷移率為 100% 的類別。因此，當您離開可燃類別時，您將進入 THP。我認為你不能排除這一點。然後你開始說，讓我們排除日本或讓我們排除俄羅斯。你不能這樣做。所以我必須把這兩件事放在一起。如果沒有，他們的管理會變得非常非常困難，因為一個類別的遷移是 100% 到另一個類別的。歸根結底，是煙草。因此，如果您查看這兩個類別，因為這是我喜歡閱讀的方式，並且我認為這是正確的閱讀方式，如果您查看價格組合，那是我們應該在這裡討論的最重要的事情。去年的價格組合為 5.5%。如果你看看過去 3 年的平均價格組合，它是 5.6%。我們的矩陣是 4% 到 6%。它位於矩陣的高端。所以我認為 2017 年的價格組合，儘管我說了這麼多，但還是很穩定的，相當不錯。當然，有一些顧慮，我也有一些顧慮，因為在 2016 年，價格組合比往常高了一點。分別為 6.5%、6.7%。 2017 年有所下降。但正如我之前所說，這是一個很好的理由，由於意大利、法國、俄羅斯等地的競爭環境，我們已經吸收了一些消費稅。 2016 年，我們在巴西、馬來西亞等地的消費稅大幅上漲並沒有通過價格傳遞。在海灣合作委員會這樣的地方，你遇到了我提到的問題，即人員流動。好吧，儘管如此，價格組合是 5.5%。這是我們矩陣的高端。這是相當堅實的。這與過去 3 年的平均水平持平。如果你花 5 年時間，你會發現它甚至更高一點。所以還不錯。這很好。

I have a question down there, and then I'll go back to you, okay, because you've raised before.

我有一個問題，然後我會回到你身邊，好吧，因為你以前提出過。

Owen Bennett at Jefferies. Just a few questions on the SE application in the U.S., please. And firstly, are you confident of approval? I think you said around midyear, you should hear? And secondly, can we get any details on commercialization times in place? And then thirdly, could you give us any details on capacity you have in place for the carbon tip, and should it prove popular in the U.S.?

傑富瑞的歐文·貝內特。請就美國的 SE 申請提出幾個問題。首先，您有信心獲得批准嗎？我想你說在年中左右，你應該聽到嗎？其次，我們能否獲得有關商業化時間的任何細節？第三，您能否向我們提供有關您擁有的碳尖端容量的任何詳細信息，以及它是否應該在美國流行？

Well, the carbon tip application, the submission was July 2017. We expect the decision to be half 1 2018. Unfortunately, we don't manage this process. FDA manages the process. Our expectation is that half 1 of this year, you'll have FDA making the call. I cannot guarantee that. But our expectation is going to be for half 1 2018. And if half 1 2018 is confirmed, and you are able to launch this product in the market, it's going to happen in the second half. We have plans for that in the United States, and we don't have capacity problems. So that's what I can disclose. I cannot disclose the states and things like that, because these are plans that are quite confidential. But we'll be launching before the end of the year in the United States, and we'll be -- we won't be capacity-constrained in the case of carbon tips. But as I said, it's all dependent on the FDA. It's very difficult for me to tell you when I think that's going to happen. My expectation is half 1, we'll have this going ahead.

嗯，碳提示申請，提交時間是 2017 年 7 月。我們預計決定是 2018 年 1 月的一半。不幸的是，我們不管理這個過程。 FDA 管理該過程。我們的期望是，今年上半年，您將讓 FDA 做出決定。我不能保證。但我們的預期是 2018 年上半年。如果 2018 年上半年得到確認，並且您能夠在市場上推出該產品，它將在下半年發生。我們在美國有這方面的計劃，而且我們沒有能力問題。這就是我可以透露的。我不能透露狀態和類似的事情，因為這些是非常機密的計劃。但我們將在今年年底之前在美國推出，而且我們將——在碳排放尖端的情況下，我們不會受到產能限制。但正如我所說，這一切都取決於 FDA。當我認為這會發生時，我很難告訴你。我的期望是一半，我們將繼續進行。

I have a question here.

我在這裡有個問題。

Jon Leinster of Berenberg. Actually a few, I'm afraid. First of all, I think you mentioned in passing intense competition in South Korea in terms of the heated tobacco market. Was that a reference to Philip Morris? Or was that a reference to the new product from KT&G?

貝倫貝格的喬恩·倫斯特。實際上有幾個，我害怕。首先，我想你在通過激烈的韓國煙草市場競爭時提到過。那是指菲利普莫里斯嗎？或者這是對 KT&G 新產品的引用？

The reference for the new product from KT&G. Because the size of the company in that market, they have a lot of trading power in order to put forward their propositions. So I think that's more on the South Korea side than anything else. But the main reason for having 0.7% share in South Korea is initial supply as well. As soon as we have unconstrained supply, we think that we'll have the same success in South Korea that we have in Japan. But I was mentioning a second player -- a third player in the category in my comments.

KT&G新產品的參考。因為公司在那個市場的規模，他們有很大的交易權才能提出他們的主張。所以我認為這更多的是在韓國方面。但在韓國擁有 0.7% 份額的主要原因也是初始供應。一旦我們的供應不受限制，我們認為我們將在韓國取得與在日本相同的成功。但我在評論中提到了第二位球員——第三位球員。

So the product from KT&G seems credible, then.

因此，KT&G 的產品似乎是可信的。

That, I cannot say. You have to ask KT&G. I think that glo has the best product in the market and has the widest range of flavors in the market. Actually, we have for the brand, as I said, the net inflow of consumers in Japan is positive for glo. So we're extremely excited about what we have in the market. And now our new launch is in terms of consumables and device. That's what I can tell you.

那，我不能說。你得問問KT&G。我認為glo擁有市場上最好的產品，並且擁有市場上最廣泛的口味。實際上，我們對於品牌來說，正如我所說，日本消費者的淨流入對glo是積極的。所以我們對我們在市場上擁有的東西感到非常興奮。現在我們的新產品是在消耗品和設備方面。這就是我可以告訴你的。

Okay. Second one. When you launch Raptor and some of the other products in the vaping market, do you expect that to cause a step change in the growth of the vaping market in the way that perhaps you ought to in the U.S. market?

好的。第二個。當您在電子煙市場推出 Raptor 和其他一些產品時，您是否期望這會導致電子煙市場的增長發生階梯式變化，就像您在美國市場應該做的那樣？

That's a very good question. The answer is, yes. And as I said before, in October -- at Investors Day in October, I think that these are groundbreaking developments. I think that it will be -- Raptor, it will be best in class. The initial results of the tests -- the test market that we are going through in U.K. is a very small test market are extremely positive. We think that -- you don't see it in our numbers because we are doing (inaudible) here and still having the product is available to launch -- for launch. But I think that could be a step -- a very important step in terms of the growth of the category and the growth of our business. So I'm very optimistic about both products. But one of those, you will come at the end of the year, as we said at Investors Day, we will do our city launch maybe at the beginning of the second half of next year. That's Raptor, but it's not coming to the market before the year-end. And ePen 3, we are testing now. Probably at the end of the year, in the second half, we will see a city launch and later expansion for one of the countries. So we're just taking a little bit more time. It's going according to what we said in October, but the timing that it takes to guarantee that we come to the market with the right products, with the right proposition, read consumer's mind, to meet consumer needs. And also, there is an element here of margins. These are going to be products that will be in higher margins. And I think that from the financial point of view, from the market point of view, I'm extremely excited about those developments. And they are going to go through FDA. It's in our plans, as soon as we have the final products, they are going to follow the FDA path. So everything has been met.

這是一個非常好的問題。答案是，是的。正如我之前所說，在 10 月的投資者日，我認為這些都是開創性的發展。我認為它會是——猛禽，它將是同類中最好的。測試的初步結果——我們在英國經歷的測試市場是一個非常小的測試市場，非常積極。我們認為——你在我們的數字中看不到它，因為我們在這裡（聽不清）並且仍然有產品可供發布——發布。但我認為這可能是一個步驟——就該類別的增長和我們業務的增長而言，這是非常重要的一步。所以我對這兩種產品都非常樂觀。但是其中之一，你會在年底到來，正如我們在投資者日所說的那樣，我們可能會在明年下半年開始我們的城市發布。那是猛禽，但它不會在年底前上市。還有 ePen 3，我們現在正在測試。可能在今年年底，下半年，我們將看到其中一個國家的城市啟動和隨後的擴張。所以我們只是多花一點時間。它正在按照我們在 10 月份所說的進行，但要保證我們以正確的產品、正確的主張進入市場、讀懂消費者的想法、滿足消費者的需求所需要的時機。而且，這裡還有一個邊距元素。這些將是利潤率更高的產品。而且我認為從財務的角度來看，從市場的角度來看，我對這些發展感到非常興奮。他們將通過FDA。在我們的計劃中，一旦我們有了最終產品，他們就會遵循 FDA 的路徑。所以一切都已經滿足了。

And lastly, do you think the health claims or medical claims, do you think that's absolutely key to getting this -- to getting heated tobacco to grow in Europe or, indeed, in the U.S.? Or do you think that's a key competitive tool? Or do you think that's not necessary particularly?

最後，你認為健康聲明或醫療聲明，你認為這絕對是獲得這一點的關鍵——讓加熱煙草在歐洲或實際上在美國生長嗎？或者你認為這是一個關鍵的競爭工具？還是您認為這不是特別必要的？

Well, we don't have a medical claim in Japan and Korea. I think that the markets are growing for a lot of different reasons there, and we discussed this several times before. Why did it grow so fast there when you see other markets in the world not growing as fast. As you know, as well as I know, it was launched in Italy at the same time that it was launched in Japan. And just look at the performance of both markets. There are a lot of reasons why it's growing so fast in Japan and Korea. And I'm not going to go back on that because we discussed this so many times before. And I think that this is -- in some markets, can be more important than others. But if you ask me the question, do I think if I had the chance to use this tool, it would be very important. But it's difficult to tell you on a worldwide basis, I think in some of the markets, it's going to more important than others.

好吧，我們在日本和韓國沒有醫療索賠。我認為那裡的市場正在增長有很多不同的原因，我們之前曾多次討論過這個問題。當你看到世界上其他市場增長不那麼快時，為什麼它在那裡增長如此之快。如你所知，據我所知，它在意大利推出的同時也在日本推出。看看兩個市場的表現。它在日本和韓國增長如此之快的原因有很多。我不會再談這個，因為我們之前討論過很多次。而且我認為這 - 在某些市場中，可能比其他市場更重要。但是如果你問我這個問題，我是否認為如果我有機會使用這個工具，它會非常重要。但是很難在全球範圍內告訴你，我認為在某些市場中，它會比其他市場更重要。

Can I have one more question before we close the session, if there is one? Yes, one there.

在我們結束會議之前我可以再問一個問題嗎？是的，那裡有一個。

Mirco Badocco at RBC. So you mentioned a total cumulative investment in NGPs of $2.5 billion since 2012. I wanted to know if you can share more -- if you can give more color on how much of that was behind heat-not-burn, how much behind vaping, and the state of CapEx and P&L?

RBC 的米爾科·巴多科。所以你提到了自 2012 年以來對 NGP 的累計投資總額為 25 億美元。我想知道你是否可以分享更多信息——如果你能提供更多關於加熱不燃燒背後有多少，電子煙背後有多少，以及資本支出和損益的狀態？

Well, we don't disclose this kind of data to give you a breakdown of the $2.5 billion. And I have to say that some of the research that we do works for both categories. In terms of personnel, it works for both categories. So it's difficult for us to start splitting this. So all the laboratory work, it works for both categories. So we don't disclose this kind of data.

好吧，我們不會披露此類數據來為您提供 25 億美元的明細。我不得不說，我們所做的一些研究適用於這兩個類別。在人員方面，它適用於這兩個類別。所以我們很難開始拆分這個。所以所有的實驗室工作，它都適用於這兩個類別。所以我們不會透露這種數據。

So, guys, thank you for coming. We look forward to speaking to you in July at our interim results, and we'll be reporting our new regional structure. So thank you very much for coming.

所以，伙計們，謝謝你們的到來。我們期待在 7 月份與您討論我們的中期業績，我們將報告我們新的區域結構。所以非常感謝你的到來。