The Premium Cigar Growth Opportunity

Fernando Dominguez Premium Cigar Director

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What is Premium Cigar Business all about?

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It’s all About Luxury…

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… and Experience

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Growth driven by emerging markets

Asia particularly China

Latam (Brazil), Eastern Europe and

Middle East becoming more

relevant

Source: Bain & Company, Spring 2012

Luxury Product Sales

Luxury Industry Sales to Continue Growth

+10%

+6-7%

+7-8%

+8-10%

CAGR 2011-14F

+7-9%

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USA >60%

Spain 6%

RoW

Premium Cigar Market Total Cigar Market: 13bn sticks Premium Cigar Market

Volume 350m

USA+WE = 85% of total consumption Increasing volumes in line with higher demand of

luxury products Main Origins: DR, Cuba, Nicaragua, Honduras

Source: Imperial estimates

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Global leader; iconic brands

Our Position in the Market

c.40% global share

3 operating areas: Cuban business USA International (non-Cuban brands)

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Sales growth across all business:

Cuban: driven by emerging markets +17%

USA: strong growth in our core brands

International: driven by VegaFina expansion (>30 markets and +31% volumes) FY11 FY12

Volumes +11%

Value +10%

Our Performance

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How we do it: Business Approach

Portfolio Quality Uniqueness

Innovation Exclusivity

Footprint

Distribution Network

Experiences

Consumer Customer

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Portfolio Quality Uniqueness

Innovation Exclusivity

Strong presence in all main tobacco growing countries

How we do it: Business Approach

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Portfolio Quality Uniqueness

Innovation Exclusivity

…and the most global and prestigious brands

How we do it: Business Approach

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Portfolio Quality Uniqueness

Innovation Exclusivity

Romeo by Romeo y Julieta USA

How we do it: Business Approach

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Portfolio Quality Uniqueness

Innovation Exclusivity

Cohiba Behike Habanos

How we do it: Business Approach

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Old Habanos Tubes

Portfolio Quality Uniqueness

Innovation Exclusivity

How we do it: Business Approach

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New Habanos Tubes

Portfolio Quality Uniqueness

Innovation Exclusivity

How we do it: Business Approach

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Footprint

Distribution Network

International distribution network in more than

150 markets

Main markets

How we do it: Business Approach

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CONSUMER ENGAGEMENT Loyalty Programs

Experiences

Consumer Customer

How we do it: Business Approach

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Experiences

Consumer Customer

CONSUMER ENGAGEMENT Special Events & Activities

How we do it: Business Approach

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VIDEO

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Experiences

Consumer Customer

CONSUMER ENGAGEMENT Product enjoyment places

How we do it: Business Approach

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Experiences

Consumer Customer

CUSTOMER ENGAGEMENT Partnerships

How we do it: Business Approach

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Experiences

Consumer Customer

CUSTOMER ENGAGEMENT Specialization

How we do it: Business Approach

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More to Come

Portfolio

Leading innovation across the business

Develop VegaFina as a global non Cuban Premium cigar brand

Exploit brand equity: New Montecristo Mini

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Footprint

Develop and strengthen category in emerging markets

The USA opportunity

More to Come

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More to Come

Experiences

Enlarge consumers base through Life Style approach. Use of Digital Media

Developing new smoking places

Enhance the shopping experience

MORE CONSUMERS MORE OCCASIONS

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VIDEO

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The Premium Cigar Growth Opportunity

Strong Foundations and

Opportunities

Sustainable Growth

Imperial Tobacco Investor Day February 2013