Imperial Brands Plc · LSE:IMB
Imperial Brands — Imperial Tobacco Group — Merger or Acquisition (August 2007)
15 slides from Imperial Brands's merger presentation, Aug 13, 2007
Slide 1: Proposed Acquisition of Altadis
Proposed Acquisition of Altadis Extraordinary General Meeting 13 August 2007 Imperial Tobacco Group PLC
Slide 2: Iain Napier, Chairman
Iain Napier Chairman 2
Slide 3: Transaction Summary
Transaction Summary Proposed offer of €50 per Altadis share in cash - equity value of €12.6bn (£8.5bn*) - Enterprise Value of €16.2bn (£11.0bn*) To be recommended by Altadis board Revenue benefits and substantial cost savings - operational efficiencies of c.€300m pa Financed by new debt and
Slide 4: Strategic Rationale
Strategic Rationale A great strategic fit Meets our established acquisition criteria Strengthens position as world’s no.4 Major enhancement to operating platform and scale Mature and emerging market opportunities Stronger & more diversified brand and product portfolios Revenue benefits
Slide 5: Process Considerations
Process Considerations Process driven by Spanish takeover laws - new laws effective from 13 August 2007 Offer document filed with CNMV on 18 July 2007 - approval expected in September Anti-trust clearance requirements - EU Commission and US Hart-Scott Rodino Potential completion in Q1 FY08 5
Slide 6: Gareth Davis, Chief Executive
Gareth Davis Chief Executive
Slide 7: Altadis overview
Altadis overview Formed in 1999, following Seita and Tabacalera merger Three core businesses - cigarettes, cigars, logistics Well known cigarette and cigar brands Broad international presence c.27,400 employees 27 manufacturing sites* Similar litigation profile to Imperial Note: *exclu
Slide 8: The Enlarged Group: strong cigarette brand fit
The Enlarged Group strong cigarette brand fit Imperial Altadis 8
Slide 9: The Enlarged Group: enhanced cigarette shares
The Enlarged Group enhanced cigarette shares UK: market leader c. 46% Germany: stronger no. 2 position c.27% Spain: leading position at 36.6% France: no. 2 position at 28.5% Improved market share in Russia and Italy Enhanced positions in Morocco, Poland, Finland, Belgium and Austria Note
Slide 10: The Enlarged Group: strong tobacco and cigar brands
The Enlarged Group strong tobacco and cigar brands Imperial Altadis Fine cut tobaccos Cigars Snus Cigars 10
Slide 11: Altadis cigar
Altadis cigar World No.1 in cigars - market leader in US, Spain and France Key US premium brands - Montecristo, Romeo y Julieta, H. Upmann Key US mass market brands - Backwoods, Dutch Masters, Phillies 50% interest in Corporación Habanos 11
Slide 12: Altadis logistics
Altadis logistics Servicing > 510k PoS in Western Europe and Morocco Tobacco 47% of total FY06 Logistics economic sales Positions in Spain, Portugal and Italy (through Logista) as well as in France and Morocco Attractive and complementary business - continue to be run on a standalone basis
Slide 13: The Enlarged Group: management and employees
The Enlarged Group management and employees Swift integration of two businesses Antonio Vázquez and Jean-Dominique Comolli invited to join the Imperial Board Headquarters in Bristol - continued presence in Madrid and Paris 13
Slide 14: Summary
Summary A great strategic fit Meets our established acquisition criteria Strengthens position as world’s no.4 Major enhancement to operating platform and scale Mature and developing market opportunities Stronger & more diversified brand and product portfolios Revenue benefits and subst
Slide 15: Proposed Acquisition of Altadis
Proposed Acquisition of Altadis Extraordinary General Meeting 13 August 2007 Imperial Tobacco Group PLC
Imperial Tobacco Group — Merger or Acquisition (August 2007) on 6ix