Sanford Bernstein Conference 2012Imperial Tobacco Group PLC
London, 20 September 2012
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Disclaimer
Certain statements in this presentation constitute forward-looking statements. Any statement in this presentation that is not a statement of historical fact including, without limitation, those regarding the Company’s future expectations, operations, financial performance, financial condition and business is a forward-looking statement. Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, changing economic, financial, business or other market conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described in this presentation. As a result, you are cautioned not to place any reliance on such forward-looking statements. The forward-looking statements reflect knowledge and information available at the date of announcement of the full year results and the Company undertakes no obligation to update its view of such risks and uncertainties or to update the forward-looking statements contained herein. Nothing in this presentation should be construed as a profit forecast.
This presentation does not constitute an offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities of the Company nor should it form the basis of or be relied on in connection with any contract or commitment whatsoever.
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Driving Quality Growth
Alison Cooper Chief Executive
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Our Business Model
MaximisingShareholder
Returns
MaximisingShareholder
Returns
High MarginProfits
StrongCash Flow
Sales
ReinvestKey enablers
Consumer insights
Operation & supply chain alignment
Shaping our environment
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HY12 Financial Highlights
MaximisingShareholder
Returns
MaximisingShareholder
Returns
High MarginProfits
StrongCash FlowSales
Reinvest
Tobacco: +3.3%
Key strategic brands: +12%
43%
Interim dividend: +13%
Buyback: £500m per annum
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Consumer Motivationsa differentiated consumer understanding
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This is because we currently donot feature tobacco product brand
imagery on our website.
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Total Tobacco Experiencesa differentiated portfolio
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This is because we currently donot feature tobacco product brand
imagery on our website.
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The Right Mindseta differentiated “how”
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Motivations the Key to Quality Growth
more consumers,
more occasions
new consumer experiences
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90
100
110
120
130
FY10 FY11 FY12 E
Key Strategic Brands Sales Growth
* Key strategic brands: Davidoff, Gauloises Blondes, West and JPS
Key
Str
ateg
ic b
rand
s N
SV In
dexe
d11% NSV; 5% volume CAGR since 2010
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Davidoff Growth Momentum
Video
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Glide-Tec Innovationreinforcing brand differentiation
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imagery on our website.
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Glide-Tec N
umbe
r of s
kus
Number of markets
over 1 billion cigarettes sold
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Innovation Pipeline delivering scalable initiatives
.
SE
Target 2014August 2012April 2011
DevelopmentFeasibilityConcept
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On Market Innovation
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imagery on our website.
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availability & advocacy
maximising revenue growth
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Regulation: Newsflow = Rapid Progress
Display Bans: less than 2 countries per year over 10 years (10%*)
Graphic Health Warnings: 5 countries per year over 12 years (30%*)
SiPPs bans: 6 countries per year over 8 years (25%*)
Plain Pack regulation has bigger legal hurdles
Australia FranceBrazil RussiaCanada TaiwanIreland ThailandNew Zealand UKNorwaySingaporeSouth AfricaTurkeyUruguay
Newsflow Generators Progress
*percentage of 200 markets
Rational markets in the majorityRational markets in the majority
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Regulation: Consumer Perspective
Minimal impact on incidence
SiPPs changed consumption occasions
Plain packaging:
doesn’t impact consumption occasions
branded reassurance important
total experience matters
price may be more relevant to some
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appear in the presentation.
This is because we currently donot feature tobacco product brand
imagery on our website.
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Regulation: Our Perspective
Track record in highly regulated markets
Ongoing focus on combating illicit trade
Unique combined consumer & portfolio positioning
opportunities in all markets
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Quality Growth: Spain
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Portfolio & Innovationnew consumer experiences
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This is because we currently donot feature tobacco product brand
imagery on our website.
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Pricing & Customer Engagement
Best in class pricing models
Excise forecast accuracy
New formats & pack sizes
Only sales out model
Availability @ 99.9%
First Trade Advocacy programme
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28.0%
28.5%
29.0%
29.5%
30.0%
Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12
Driving Quality GrowthM
AT
mar
ket s
hare
%
Domestic blond cigarettes plus fine cut tobacco plus domestic cigars
portfolio focus delivering
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Quality Growth: Russia
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Portfolio & Innovationnew consumer experiences
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in the presentation.
This is because we currently donot feature tobacco product brand
imagery on our website.
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Pricing & Customer Engagement
Key brands interaction
Excise engagement
Excise increase strategies
Modern Trade Channel focus
Retail Partnership Programme
Distributor Alignment
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Driving Quality Growthbrand focus delivering
90
100
110
120
130
140
Q2 11 Q3 11 Q4 11 Q1 12 Q2 12
volu
mes
(ind
exed
)
West Maxim Davidoff Style
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Driving Quality Growth
MaximisingShareholder
Returns
MaximisingShareholder
Returns
High MarginProfits
StrongCash Flow
Sales
ReinvestKey enablers
Consumer insights
Operation & supply chain alignment
Shaping our environment
our business model
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Driving Quality Growth
a differentiated consumer
understanding
a differentiated portfolio
a differentiated “how”
a differentiated approach
This space appears blank because we have removed the images that appear
in the presentation.
This is because we currently donot feature tobacco product brand
imagery on our website.
Sanford Bernstein Conference 2012Imperial Tobacco Group PLC
London, 20 September 2012
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