Consumer Analyst Group of Europe Conference 2011 · 2019. 12. 16. · Consumer Analyst Group of...

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Consumer Analyst Group of EuropeConference 2011Imperial Tobacco Group PLC

London29 March 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 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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What consumers wanta portfolio aligned with consumer trends

Alison CooperChief Executive

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Delivering sustainable shareholder returns


Growth driversGrowth drivers

Cost Optimisation

Cost Optimisation

Sales GrowthSales

GrowthCash

UtilisationCash

Utilisation

ExecutionExcellenceExecutionExcellence

FutureFoundations

FutureFoundations

Our key assetsOur key assets

BrandEquityBrandEquity

TotalTobacco

TotalTobacco

MarketFootprintMarket

Footprint PeoplePeople

Consumer Centric

Consumer Centric

How we leverage our assetsHow we leverage our assets

Strategic Focus

Assets, Opportunities, Capabilities..

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in the presentation.

This is because we currently donot feature tobacco product brand

imagery on our website.

ItalyRussia

ChinaJapan

AustraliaCanada BrazilMexico TurkeyS. Korea

India(Indonesia)

NLD BeLux

TaiwanUkraine Saudi Arabia Vietnam

Switzerland

GreeceIreland

Austria, Canaries, Poland,

Czech, NZL

Denmark ThailandNigeria SwedenSerbia ArgentinaBulgaria Romania

ColombiaEgypt

Philippines

I. Coast

Azerbaijan FinlandBurkina Faso NorwaySlovenia MacedoniaSenegal MadagascarLaos Slovakia

CAR HungaryChad Hong KongCongo KosovoCyprus CambodiaGibraltar

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UK GermanyUSA SpainFrance

Morocco MalaysiaS. Africa

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Low / NoProfit

Imperial Tobacco ProfitabilityImperial Tobacco ProfitabilityHighProfit

High Profit

Low Profit

Mar

ket P

rofit

abili

ty

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Mature & Emerging Market Balancesignificant opportunities

40% FMC Volumes Mature

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40% FMC Volumes Mature 60% FMC Volumes Emerging60% FMC Volumes Emerging

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Cash Utilisation

2-3%

Sales Growth Cost Optimisation

Revenue2-4%

1-2%

Acquisition/Share buybacks

Ear

ning

s G

row

thGrowth Modeltargeting high single digit EPS growth

Currency neutral basis

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Cost Optimisation

Cost Optimisation

Sales GrowthSales

GrowthCash

UtilisationCash

Utilisation


FutureFoundations

FutureFoundations





Consumer Centric

Consumer Centric


Strategic Focus

TotalTobacco

TotalTobacco

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AffordabilityAffordability

Modern lifestylesModern lifestyles

Value seekingValue seeking

AuthenticityAuthenticity

HeritageHeritage

New experiencesNew experiencesChanging societyChanging society

GlobalisationGlobalisation

Affordable luxury

Drivers Trends

Affordable luxury

Consumer Environmentconsumers responding to a changing world

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Trends

Consumer Environmentadditional tobacco factors

Regulation &Excise

Regulation &Excise

Value seekingValue seeking

AuthenticityAuthenticity

HeritageHeritage

New experiencesNew experiences

Affordable luxuryAffordable luxury

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Consumer Trendsvalue and luxury opportunities

ValueValue LuxuryLuxury

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Unique Total Tobacco Focus

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more consumers… more markets…more occasions





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Consumers Aspire to Luxury

Choice

Quality

Exclusivity

Aligned with Consumer Trends

Differentiation

Connoisseurship

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Brand Momentum– Global Visibility c.100 markets– 6% of cigarette volumes– Sustainable growth: 6% CAGR* since FY05– Share growth in 13 of top 20 markets in FY10

Brand PositioningProposition– The Ultimate Smoking Experience

Copy– The best cigarette you can buy, for smokers with

excellent taste and style

Consumers Aspire to LuxuryDavidoff

*Compound Annual Growth Rate

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Brand StrengthDemand shifts

– Davidoff Slims 16% 3y. CAGR (vs. global 14%)– Davidoff Lights 8% 3y. CAGR (vs. global 6%)

Improving share of ASU35– in Taiwan, Ukraine, Russia and Greece

Consistent perception & profile– category benchmark for High Quality & Style– urban, educated consumer

Source: Imperial

Davidoff

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Consumers Aspire to Luxurythe top cigar marks

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Affordable

Authenticity

Heritage

Trust

Smart choice

Consumers Demand Value

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WestThe value Brand with a Vibrant TwistSurprising Ideas – Innovative ChoiceTrustworthy; Inspiring; Vibrant; Progressive

FortunaLatin Taste for LifeCharacter EspanolPassion; Creative; Engaging; Genuine

JPSThe Smart ChoicePremium on Everything but PriceCredible; Cleverness; Stylish

Route 66Connect with New PerspectivesAmerican Freedom and ConfidenceUniting; Clever; Advancing; Freedom

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Consumers Demand Valueongoing alignment with consumers





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JPS: ongoing alignment with “international”

consumers

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

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Fortuna & Ducados Rubio responding to

local consumer trends

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

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Top 5 & other key FCT Markets

FY10 Market Size (bn stick

equivalents)Market size

TrendFY10

ShareImperial Position

1. Germany 35.3 #118.2%

2. UK 12.0 54.5% #1

49.3%

22.4%

32.3%

28.6%

Belgium 4.4 11.4% #2

Hungary 3.9 49.4% #1

3. Netherlands 11.1 #1

4. France 9.7 #1

5. Spain 6.2 #1

Poland 4.6 #1

Australia 2.2 59.5% #1

Imperial estimates

global leader in fine cut tobaccoConsumers Demand Value

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Consumers Demand valuealigned with changing preferences





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global cigar leader: value & luxury

Imperial estimates; by value


5%

8%

10%

15%

18%

Imperial

STG JV(Proforma)

Swisher Intl.

54% Value46% Luxury 19%

Middleton

Burger Group

Agio

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Consumers Demand Valuemass market cigar





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What Consumers & Customers Want

TotalTobacco

TotalTobacco

Aligned assets and capabilities

Aligned assets and capabilities

ConsumerConsumer

CustomerCustomer

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Customer Alignmentwinning portfolio for the trade

The Results

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Organic Cigarette Volume Growth

Source: Company data; Volumes represent respective financial reporting years; *Compound annual growth rate

annual growth CAGR* FY05 – FY10

-0.8%

-0.5%

0.9%

-0.8

-0.6

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

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131

100

FY10FY05

West ex Germany6% CAGR* stick equivalent volumes

*Compound annual growth rate

inde

xed

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JPS21% CAGR* stick equivalent volumes

257

100

FY10FY05


inde

xed

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FCT Volume Growth

40

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FY10FY07

billio

n st

ick

equi

vale

nts

5% CAGR* since FY07


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Spain – Mini Cigar SegmentCoburn the clear segment leader

28.3%

3.2%

0

5

10

15

20

25

30

Dec 10

Sep 10

Jun10

Mar10

Dec 09

Oct09

Cob

urn

Sha

re o

f Min

is S

egm

ent (

%)

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Luxury Momentumstrong Davidoff and Habanos growth

142

131127

113111106

100

2011YTD

FY10FY09FY08FY07FY06FY05

Davidoff volumes6% CAGR* FY05 to FY10

inde

xed

Habanos sales growth

8%

2%

2011YTD

2010

Constant currency

*Compound annual growth rate; YTD is annualised

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NS

V In

dexe

d

Imperial estimates; index takes IMT in FY05 as base; based on respective company financial reporting periods

strong Nordic snus performance

0

5

10

15

20

25IMT

BAT

JTI

FY10FY06FY05 FY09FY08FY07


Volumes +24% in FY10

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appear in the presentation.



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Unique Total Tobacco Focus

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more consumers… more markets…more occasions





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Cost Optimisation

Cost Optimisation

Sales GrowthSales

GrowthCash

UtilisationCash

Utilisation


FutureFoundations

FutureFoundations



TotalTobacco

TotalTobacco



Consumer Centric

Consumer Centric


Strategic Focus

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Consumer Analyst Group of EuropeConference 2011Imperial Tobacco Group PLC

London29 March 2011

Consumer Analyst Group of Europe Conference 2011 · 2019. 12. 16. · Consumer Analyst Group of...

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