Imperial Brands PLC · LSE:IMB
Imperial Brands — Imperial Tobacco Group — Shareholder Meeting (January 2015)
25 slides from Imperial Brands's shareholder meeting presentation, Jan 28, 2015
Slide 1: Annual General Meeting 2015
Annual General Meeting 2015 Imperial Tobacco Group PLC 28 January 2015
Slide 2: Mark Williamson, Chairman
Mark Williamson Chairman
Slide 3: A Reminder of our Strategy
A Reminder of our Strategy four operational priorities; one strategic objective Maximise sustainable shareholder returns Strengthen Develop Drive Cost Embed Capital Portfolio Footprint Optimisation Discipline Simplify portfolio Focus on opportunities Optimised Target cash conversion Invest
Slide 4: FY14: Driving strategy forward
FY14: Driving strategy forward a strong foundation for growth 10% increase in full year dividend to 128.1p Strengthen Develop Cost Capital Portfolio Footprint Optimisation Discipline More revenue from Resilient in Returns More than £60m Cash conversion brands with strongest Markets: profit +
Slide 5: Alison Cooper, Chief Executive
Alison Cooper Chief Executive
Slide 6: Underlying Performance
Underlying Performance HY 14 ∆ FY 14 ∆ Volume (bn SE) -4% -4% Tobacco net revenue (£m) +2% +2% Growth Brand volume (bn SE) +4% +7% Growth Brand tobacco net revenue (£m) +6% +9% Specialist Brand tobacco net revenue (£m) +6% +2% Growth Market tobacco net revenue (£m) +7% +7% Returns Market tobacco net
Slide 7: Strengthening our Portfolio: Growth Brands
Strengthening our Portfolio Growth Brands 7
Slide 8: Strengthening our Portfolio: Specialist Brands
Strengthening our Portfolio Specialist Brands 8
Slide 9: Brand Migrations
Brand Migrations good early results – more to come 2015 22 started in FY14 (5 complete) Market by market approach Czech Moon to Parker & Simpson More migrations in FY15 Building a stronger portfolio Spain Brooklyn to West 9
Slide 10: Fontem Ventures
Fontem Ventures developing new consumer experiences Focused mainly on e-Vapour solutions First product Puritane launched in 2014 Expect new Fontem products during 2015 10
Slide 11: Developing our Footprint
Developing our Footprint strengthening our position in Growth Markets Norway Italy 38% 36.0% 3.6% 4% 36% 3.1% 34% 32.0% 3% 32% 30% 2% 2013 2014 2013 2014 Skruf now No.1 brand in Norway JPS driving growth Sales Growth 11
Slide 12: Developing our Footprint
Developing our Footprint investing in Growth Markets Egypt Japan Significant market c.80bn SE Large consumer and profit pool Partnership with leading distributor Focus on convenience (c.60% of market) Sales Gauloises & Davidoff – focus on equity build West now listed in all key accounts
Slide 13: USA
USA continuing to build equity and grow share USA Gold growing share in our 19 focus states H2 equity and awareness campaign USA Gold GlideTec pack now widely distributed Business continuing to grow profit 13
Slide 14: Spain, Morocco and France
Spain, Morocco and France strengthening our position in Returns Markets Spain Morocco France Early signs of lessening Market decline driven by Structural decline of dark market decline excise and illicit tobacco segment continues Stabilisation in illicit Launch of ‘MQS’ in FMC to impact pe
Slide 15: UK, Australia
UK, Australia resilient performance strong financial performance Maintaining leadership position JPS driving share growth Trading environment competitive Customer engagement has been key Downtrading still prevalent Illicit trade continuing to increase 15
Slide 16: Cost and Cash Management
Cost and Cash Management supports our growth strategy £300m savings pa by 2018 Total of £90m delivered so far; £60m in 2014 Further £85m expected in 2015 91% cash conversion, up from 86% in 2013 Targeting sustained improvement across the Group 16
Slide 17: Corporate Responsibility
Corporate Responsibility 94% score in Business in Community CR Index We can I own I am We Surprise I engage We enjoy 74% score in Dow Jones Sustainability Index 17
Slide 18: FY15 Outlook
FY15 Outlook focused and disciplined Long standing target of at least 10% increase in dividend Strengthen Develop Cost Capital Portfolio Footprint Optimisation Discipline Enhance brand equity Building momentum Deliver further savings Embedding cash to build sustainability across Growth as pa
Slide 19: Lao Tobacco Ltd
Lao Tobacco Ltd Joint Venture agreement signed with the Lao Government in 2001 Govt. benefits from 47% holding in the JV; excellent relationship No ‘special tax deal’; excise on tobacco has not been capped for 25yrs Since 2002 Govt. revenues from tobacco excise have risen every year 2010 a
Slide 20: Annual General Meeting 2015
Annual General Meeting 2015 Imperial Tobacco Group PLC 28 January 2015
Slide 21: Resolutions 1 - 4
Resolutions 1 - 4 For Against Abstentions Annual Report and Accounts 99.46% 0.01% 0.53% Directors’ Remuneration Report 93.32% 5.41% 1.27% Directors’ Remuneration Policy 92.43% 6.35% 1.22% To declare a final dividend 99.46% 0.01% 0.53% 21
Slide 22: Resolutions 5 - 13
Resolutions 5 - 13 Director For Against Abstentions Dr K M Burnett 99.10% 0.08% 0.82% Mrs A J Cooper 99.39% 0.07% 0.54% Mr D J Haines 98.63% 0.55% 0.82% Mr M H C Herlihy 99.11% 0.08% 0.81% Mr M R Phillips 98.72% 0.47% 0.81% Mr O R Tant 98.45% 0.74% 0.81% Mr M D Williamson 98.91% 0.27% 0.82% Mrs K Wi
Slide 23: Resolutions 14 - 17
Resolutions 14 - 17 For Against Abstentions Reappointment of Auditors 96.56% 1.51% 1.93% Remuneration of Auditors 97.53% 1.24% 1.23% Donations to political organisations 97.82% 0.89% 1.29% Authority to allot shares 98.65% 0.80% 0.55% 23
Slide 24: Special Resolutions 18 - 20
Special Resolutions 18 - 20 For Against Abstentions Disapplication of pre-emption rights 98.65% 0.52% 0.83% Purchase of own shares 99.40% 0.06% 0.54% Notice period for general meetings 88.28% 11.17% 0.55% 24
Slide 25: Annual General Meeting 2015
Annual General Meeting 2015 Imperial Tobacco Group PLC 28 January 2015
Imperial Tobacco Group — Shareholder Meeting (January 2015) on 6ix