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Deutsche Bank Global Consumer Conference 2014

Imperial Tobacco Group PLC

Paris

17 June 2014

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Alison Cooper Chief Executive

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Disclaimer

Certain statements in this announcement constitute or may constitute forward-looking statements. Any

statement in this announcement 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 or may be a forward-looking statement. Such forward-looking statements

are subject to risks and uncertainties that may cause actual results to differ materially from those

projected or implied in any forward-looking statement. 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 announcement. 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

this announcement 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

announcement should be construed as a profit forecast or profit estimate and no statement in this

announcement should be interpreted to mean that the future earnings per share of the Company for

current or future financial years will necessarily match or exceed the historical or published earnings

per share of the Company.

This announcement has been prepared for, and only for the members of the Company, as a body, and

no other persons. The Company, its directors, employees, agents or advisers do not accept or

assume responsibility to any other person to whom this announcement is shown or into whose hands

it may come and any such responsibility or liability is expressly disclaimed.

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Our Priorities for 2014

Strengthening our portfolio

Backing growth with increased investment in Growth Brands

Growth Markets

Returns Markets

Fontem Ventures

Building resilience

cost optimisation

stock optimisation programme

How Will We Win With Our Brands?

Peter Corijn

Group Marketing

DB Conference June 2014

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Marketing is:

Maximising benefits

to consumers

Selling as high as

possible and have

consumers come

back for more

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2

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Agenda

Source: Roger Martin

Copyright © 2000 Monitor Company, Inc. — Confidential — CAM

How will

we win in

chosen

markets?

What are

our goals

and

aspiration?

What

capabilities

must be in

place to

win?

Where will

we play?

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“Consumer

inspired,

brand centric”

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How big can our brands be?

JPS

Australia 13%

UK 10%

Germany 9%

Source: *Market Share & Size P6 YTD

Davidoff

Saudi Arabia 8%

Taiwan 6%

West

Slovenia 18%

Azerbaijan 17%

GoB

Algeria 18%

Germany 6%

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How to Win?

Davidoff, JPF House, West House, Gauloises, USA Gold, as per

the global portfolio model.

1. We focus on 5 global brands:

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West

West

JPF & West House are a “chassis”

a “chassis” = a group of

brands managed as

“one” brand despite

different brand names

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Mainline

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How to Win?

2. Total Tobacco

10 Specialist Brands managed for value FMC Unique

Proposition

Fine Cut

Specialist

Cigar Premium

Cigar Mass

Market

Smokeless

Papers

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30% simplification

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Benefits of Simplification

This simplification enables the £300m cost optimisation by 2018

Procurement Buying larger quantities of fewer items Procurement

Manufacturing Longer runs of fewer brands/ fewer SKUs Manufacturing

Marketing Focus investment and effort behind fewer, bigger, better Marketing

Sales Focus on driving 2+2 brands = better execution Sales

roll out initiatives faster across fewer chassis +

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Drive superior consumer/shopper lead Brand

Equity

How to win?

Brand Equity

Innovation

Simplification

People

Execution

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So how are we delivering in equity?

The Sales Growth Drivers

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Gauloises “Enjoy the freedom

to be yourself”

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25 Retail shop, Casablanca, May 2014

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Building Capabilities: One Agency

1

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How to Win?

“Fewer, bigger, better” initiatives.

Innovation

Brand Equity

Simplification

People

Execution

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Additive Free

In Western Europe

Freshness In

Middle East Menthol in ASIA

Example Lead Brand Initiatives Specific to Cluster Demand Shifts

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Innovation in e-vapour (Fontem Ventures)

Puritane Launched February 2014

– healthcare channel brand

– launched at 2400 Boots stores

– marketing campaign started in April

– opportunities to expand in UK and

internationally

One more launch before year end

Our strategy remains measured:

– regulation is developing

– working on patented technology

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Plan and execute migrations and

SKU reductions, and the portfolio

strategy.

How to Win?

Simplification

Brand Equity

People

Execution

Innovation

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12 Migrations on track in FY14. More to come!

Migrating

=

Focus

Equity

Innovation

Quality

Availability

Consumers get added benefits

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Migration Creates Value for ITG

Value

Value Uplift

Brand

Migration Brand without Migration

Brand with Migration

Time

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Clear Portfolio Strategy

All other total

tobacco category

brands in local ITG

portfolios

Portfolio Brands

ASSETS NON- ASSETS

Specialist (10)

Now need to align Market priorities & management implications...

Growth (5)

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Portfolio Strategy

Primary

Secondary

Cash

Delist

Migrate

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Build a world class Marketing Team

How to Win?

People

Brand Equity

Execution

Innovation

Simplification

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New Brand focused Structure

Upgraded talent via internal

and external recruiting

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How to Win?

Improve the executional quality in

everything we do: on time, great

content

Execution

Brand Equity

Innovation

Simplification

People

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Alison Cooper Chief Executive

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Our Priorities for 2014

Strengthening our portfolio

Backing growth with increased investment in Growth Brands

Growth Markets

Returns Markets

Fontem Ventures

Building resilience

cost optimisation

stock optimisation programme

42

Deutsche Bank Global Consumer Conference 2014

Imperial Tobacco Group PLC

Paris

17 June 2014