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Sanford Bernstein Conference 2011

Imperial Tobacco Group PLC

London 21 September 2011

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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 half 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.

Unlocking Our Potential

Alison Cooper Chief Executive

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Cost Optimisation

Cost Optimisation

Sales GrowthSales

Growth Cash Utilisation

Cash Utilisation

Execution ExcellenceExecution Excellence Future FoundationsFuture Foundations

Sales Growth DriversSales Growth DriversPortfolio

ManagementPortfolio

Management InnovationInnovation Customer Engagement

Customer Engagement PricingPricing

Consumer CentricConsumer Centric

Key EnablersKey Enablers

Our Strategy

Our Key AssetsOur Key AssetsMarket

FootprintMarket

FootprintTotal

TobaccoTotal

TobaccoBrandEquityBrandEquity PeoplePeople

Delivering Sustainable Shareholder ReturnsDelivering Sustainable Shareholder Returns

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HY11: Delivering Our Strategy

Building sustainable sales

success across international footprint

driving growth through total tobacco

Disciplined cost management

investing for growth

margins increased

Effectively managing cash

strong 12 month cash conversion

dividend growth ahead of adjusted EPS growth

share buyback commenced May 2011

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Seeing Things Differently

Doing Things Differently

Unlocking Our Potential

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Sales Growth Drivers

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Fast from idea to implementation

Proactively engaging for rational regulation

Our Key Enablers

Understanding consumer needs

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Maximising Shareholder ReturnsHigh

Margins

Reinvest

Sales Strong Cash Flow

Key Enablers

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Sales Growth Drivers

More Consumers, More Occasions

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More Consumers, More Occasions

Brand Equity

Total Tobacco

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Same Consumer, Multiple Needs for Multiple Occasions

Behavioural Opportunities, Motivational Opportunities

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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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Davidoff in 2006

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This is because we currently donot feature tobacco product brand imagery on our website.

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Davidoff Today

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This is because we currently donot feature tobacco product brand imagery on our website.

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120

107105

100

124

FY10FY09FY08FY07FY06

Davidoff Volume Growth6% CAGR* volumes FY06 – FY10

inde

xed

* Compound annual growth rate

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Habanos Growth

116

100

FY10FY09

Inde

xed

volu

mes

ex

EU

exclusive editions driving sales

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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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Dynamic German Portfolio

Market Volumes

growing in growing segmentsin

dexe

d sh

are

of m

arke

t (%

)

0

50

100

FY10FY06

shar

e (%

)

Above Value* FMCValue* FMC and FCT

23.4%

21.5%

20

25

FY10FY06

IMT Share of Value* FMC and FCT

* Value defined as sub-mid price FMC segments

IMT Share of Value* FMC and FCT Segments

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JPS Stick Equivalent Volumes11% CAGR*

152

144

128

100

150

132

119

112

100

FY10

169**

FY09FY08FY07FY06

*Compound annual growth rate; **JPS Germany stick equivalent volumes CAGR of 14% FY06 – FY10

Total JPSJPS Germany

inde

xed

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Poland Portfolio Success

Market Volumes

responding to consumer demands

0

50

100

FY10FY06

inde

xed

shar

e of

mar

ket (

%)

shar

e (%

)

Above Value FMCValue FMC and FCT

32.8%

27.2%

35

30

25FY10FY06

IMT Share of Value FMC and FCT

IMT Share of Value FMC and FCT Segments

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Route 66 Stick Equivalent Volumes41% CAGR*

155

124108100

223

155131

100

FY06 FY10

390

320**

FY09FY08FY07

*Compound annual growth rate; **Route 66 Poland stick equivalent volumes CAGR of 34% FY06 – FY10;

Total Route 66Route 66 Poland

inde

xed

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Sales Growth Drivers

New Consumer Choices

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Incremental Growth Pipeline

April 2011 September 2011 Ideal 2014

WSE

.

Development

ConceptFeasibility

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High Return Innovation Model

Consumer Untranslated Needs

Co-created with Consumers

Incremental/Brand Switchers

Total Tobacco, Multi-Market

Product Feature Improvements

Technology Based

Replacement of Slow Moving

FMC Premiumisation

Industry Mindset Imperial Focus

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Exploiting Scalable Innovation

Patented GlideTec innovation

Consumer “wow” effect

Initial launch in UK – Asda, BP, Shell & Esso

Significant capacity investment

Multi market roll-out planned

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Innovation Within Value Segment

5

6

7

8

9

10

HY11FY10FY09FY08FY07FY06

JPS German Cigarette Market Share

%

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.

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West Fusion in Russia

0.2%

3.1%

Sep 10May 10Jan 10Sep 09 May 11Jan 11

West Fusion Share of KS SSL Segment (RHS)West Fusion Volume (LHS)

SE

Vol

umes

(m)

% share of K

S S

SL segm

entgrowth within growth segment

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Sales Growth Drivers

Availability and Advocacy

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Morocco RTM Strategy

Previous Distribution System New Distribution System

Focus on truck and van deliveries

Cash and Carry’s closed

Improved efficiency and customer service

Telesales operation for greater delivery capacity

Cash and Carry deliveries

Truck deliveries to rural areas

Van deliveries to urban customers

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Outperforming in Dark Markets

Australia increased share by 1.8% to 18.8% in HY11

Norway market share of snus up 1.1% and cigarettes up 0.3% in HY11

trade marketing optimisation

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Sales Growth Drivers

Maximising Revenue Growth

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Enhancing Our Capabilitiesproactively managing pricing and excise

Occasion based pricing approach

Brand Pack Price per Channel strategies

Multivariable scenario modelling

Proactive excise management

Think Ahead Innovate & Lead

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15

16

17

18

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HY 11FY 10HY 10FY 09HY 09

% s

hare

of c

igar

ette

mar

ket

Pricing Strategy Drives Growth

Australia UK

0

1

2

3

4

5

abso

lute

cha

nge

in b

rand

% s

hare

of m

arke

t

Source: Imperial estimates

FY 09 HY 10 FY 10 HY 11SterlingWindsor BlueCigarette Share

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Sales Growth Drivers

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Maximising Shareholder ReturnsHigh

Margins

Reinvest

Sales Strong Cash Flow

Key Enablers

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Sanford Bernstein Conference 2011

Imperial Tobacco Group PLC

London 21 September 2011