Sanford Bernstein Conference 2011 Imperial Tobacco Group PLC

Transcription

1 Sanford Bernstein Conference 2011 Imperial Tobacco Group PLC London 21 September

2 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. 2

3 Unlocking Our Potential Alison Cooper Chief Executive

4 Our Strategy Delivering Sustainable Shareholder Returns Cost Optimisation Market Footprint Portfolio Management Total Tobacco Sales Growth Sales Growth Drivers Innovation Our Key Assets Key Enablers Brand Equity Customer Engagement Cash Utilisation People Pricing Consumer Centric Execution Excellence Future Foundations 4

5 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

6 Unlocking Our Potential Seeing Things Differently Doing Things Differently 6

7 Sales Growth Drivers 7

8 Our Key Enablers Understanding consumer needs Fast from idea to implementation Proactively engaging for rational regulation 8

9 Maximising Shareholder Returns High Margins Sales Strong Cash Flow Reinvest Key Enablers 9

10 Sales Growth Drivers More Consumers, More Occasions 10

11 More Consumers, More Occasions Total Tobacco Brand Equity 11

12 Same Consumer, Multiple Needs for Multiple Occasions This space appears blank because we have removed the images that appear in the presentation. This is because we currently do not feature tobacco product brand imagery on our website. Behavioural Opportunities, Motivational Opportunities 12

13 Davidoff in 2006 This space appears blank because we have removed the images that appear in the presentation. This is because we currently do not feature tobacco product brand imagery on our website. 13

14 Davidoff Today This space appears blank because we have removed the images that appear in the presentation. This is because we currently do not feature tobacco product brand imagery on our website. 14

15 Davidoff Volume Growth 6% CAGR * volumes FY06 FY indexed FY06 FY07 FY08 FY09 FY10 * Compound annual growth rate 15

16 Habanos Growth exclusive editions driving sales 116 Indexed volumes ex EU 100 This space appears blank because we have removed the images that appear in the presentation. This is because we currently do not feature tobacco product brand imagery on our website. FY09 FY10 16

17 Dynamic German Portfolio growing in growing segments 100 Market Volumes 25 IMT Share of Value * FMC and FCT Segments indexed share of market (%) 50 share (%) 21.5% 23.4% 0 FY06 FY10 20 FY06 FY10 Value* FMC and FCT Above Value* FMC IMT Share of Value* FMC and FCT * Value defined as sub-mid price FMC segments 17

18 JPS Stick Equivalent Volumes 11% CAGR * 169** indexed FY06 FY07 FY08 FY09 FY10 JPS Germany Total JPS * Compound annual growth rate; ** JPS Germany stick equivalent volumes CAGR of 14% FY06 FY10 18

19 Poland Portfolio Success responding to consumer demands 100 Market Volumes 35 IMT Share of Value FMC and FCT Segments indexed share of market (%) 50 share (%) % 32.8% 0 FY06 FY10 25 FY06 FY10 Value FMC and FCT Above Value FMC IMT Share of Value FMC and FCT 19

20 Route 66 Stick Equivalent Volumes 41% CAGR * ** 223 indexed FY06 FY07 FY08 FY09 Route 66 Poland Total Route 66 FY10 * Compound annual growth rate; ** Route 66 Poland stick equivalent volumes CAGR of 34% FY06 FY10; 20

21 Sales Growth Drivers New Consumer Choices 21

22 Incremental Growth Pipeline WSE Concept Feasibility Development. April 2011 September 2011 Ideal

23 High Return Innovation Model Industry Mindset Imperial Focus Product Feature Improvements Technology Based Replacement of Slow Moving FMC Premiumisation Consumer Untranslated Needs Co-created with Consumers Incremental/Brand Switchers Total Tobacco, Multi-Market 23

24 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 24

25 Innovation Within Value Segment JPS German Cigarette Market Share 10 % This space appears blank because we have removed the images that appear in the presentation. This is because we currently do not feature tobacco product brand imagery on our website. 5 FY06 FY07 FY08 FY09 FY10 HY11 25

26 West Fusion in Russia growth within growth segment 3.1% SE Volumes (m) 0.2% % share of KS SSL segment Sep 09 Jan 10 May 10 Sep 10 Jan 11 May 11 West Fusion Volume (LHS) West Fusion Share of KS SSL Segment (RHS) 26

27 Sales Growth Drivers Availability and Advocacy 27

28 Morocco RTM Strategy Previous Distribution System Cash and Carry deliveries Truck deliveries to rural areas Van deliveries to urban customers 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 28

29 Outperforming in Dark Markets trade marketing optimisation 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 29

30 Sales Growth Drivers Maximising Revenue Growth 30

31 Enhancing Our Capabilities proactively managing pricing and excise Think Ahead Multivariable scenario modelling Proactive excise management Innovate & Lead Occasion based pricing approach Brand Pack Price per Channel strategies 31

32 Pricing Strategy Drives Growth % share of cigarette market HY 09 FY 09 Australia HY 10 FY 10 HY 11 absolute change in brand % share of market UK FY 09 HY 10 FY 10 HY 11 Cigarette Share Windsor Blue Sterling Source: Imperial estimates 32

33 Sales Growth Drivers 33

34 Maximising Shareholder Returns High Margins Sales Strong Cash Flow Reinvest Key Enablers 34

35 Sanford Bernstein Conference 2011 Imperial Tobacco Group PLC London 21 September