Imperial Brands Plc · LSE:IMB
Imperial Brands — FY2025 Earnings Presentation
56 slides from Imperial Brands's earnings presentation, Nov 18, 2025
Slide 1: Imperial Brands Full Year Results
Imperial Brands Full Year Results 18 November 2025
Slide 2: Cautionary Statement
Cautionary Statement Certain statements in this announcement other market conditions. These and other mean that the future earnings per share of constitute or may constitute forward-looking factors could adversely affect the outcome the Company for current or future financial statements. Any stateme
Slide 3: Agenda
Agenda Results Overview Lukas Paravicini Financial Review and Outlook Murray McGowan Strategic and Operational Update Lukas Paravicini Lukas Paravicini Q&A Murray McGowan Full Year Results | 18 November 2025 3
Slide 4: Results Overview
Results Overview Lukas Paravicini Chief Executive Officer Full Year Results | 18 November 2025 4
Slide 5: Another Year of Strong Delivery
Another Year of Strong Delivery OPERATIONAL AND FINANCIAL PERFORMANCE DRIVING SHAREHOLDER RETURNS OPERATIONAL FINANCIAL SHAREHOLDER DELIVERY DELIVERY RETURNS TOP FIVE AGGREGATE SHARE TOBACCO & NGP NET REVENUE* DIVIDEND PER SHARE 0bps +4.1% +4.5% Price/mix: +5.4% NGP NET REVENUE* ADJUSTED EPS* FY26 B
Slide 6: Building on Our Consistent Track Record
Building on Our Consistent Track Record PROVIDES A PLATFORM ON WHICH TO BUILD FOR THE NEXT PHASE FY21 – FY25 CUMULATIVE CUMULATIVE GROWTH IN NGP CUMULATIVE EPS TOTAL CAPITAL PRIORITY MARKET TOBACCO AND NET REVENUE* GROWTH* RETURNS TO SHARE NGP NR GROWTH* (losses reduced by 76%**) SHAREHOLDERS +48 bp
Slide 7: Strong Foundations for Next Phase of Growth
Strong Foundations for Next Phase of Growth MEETING OUR PERFORMANCE COMMMITMENTS AS WE TRANSITION TO 2030 STRATEGY Established our position as the industry’s focused challenger Embedded a culture of consistent performance Created value through enhanced consumer capabilities Purposeful transformation
Slide 8: Our Evolved Strategy
Our Evolved Strategy UNDERPINNED BY A CONSISTENT VISION, PURPOSE AND BEHAVIOURS 2030 STRATEGY OUR PURPOSE OUR VISION Driving Building “Forging a path to a healthier “To build a strong challenger sustainable scale value in in NGP future for moments of relaxation business powered by responsibility, co
Slide 9: Financial Review and Outlook
Financial Review and Outlook Murray McGowan Chief Financial Officer Full Year Results | 18 November 2025 9
Slide 10: Continued Strong Financial Delivery
Continued Strong Financial Delivery REVENUE, PROFIT GROWTH AND EPS IN LINE WITH 2025 GUIDANCE TOBACCO & NGP NET REVENUE GROUP AOP 12-MONTH FREE CASHFLOW +4.1% +4.6% £2.7bn NGP NET REVENUE ADJUSTED EPS ADJUSTED NET DEBT TO EBITDA +13.7% +9.1% 2.0x Constant currency Full Year Results | 18 November 202
Slide 11: Growing Tobacco Net Revenue Across All Regions
Growing Tobacco Net Revenue Across All Regions STRONG PRICE/MIX OFFSETTING VOLUME DECLINES Net Revenue % +4.2% +3.8% +2.6% +3.7% 9.9% 5.5% 5.4% 3.6% -1.3% -6.1% -1.0% -1.7% Europe Americas AAACE Group Volume Price / Mix Net Revenue £3.2bn £2.8bn £1.9bn £7.9bn Tobacco only at constant currency Full Y
Slide 12: Growing Adjusted Operating Profit
Growing Adjusted Operating Profit PROFIT GROWTH DRIVEN BY COMBUSTIBLES +4.6% +4.9% £4,091m £3,911m +£176m +£1m +£3m FY24 AOP Tobacco performance Reduced NGP losses Logista* FY25 constant currency AOP * Including eliminations Full Year Results | 18 November 2025 12
Slide 13: Operating Profit: Adjusting Items
Operating Profit: Adjusting Items TRANSFORMATION COSTS IN LINE WITH CAPITAL MARKETS DAY GUIDANCE FY25 reported operating profit £3,490m 2030 strategy Amortisation and impairment of acquired £369m Non-cash costs intangibles • Impairment charge reflecting 2030 Strategy non-cash costs (Langenhagen) £10
Slide 14: Delivering High-Single-Digit EPS Growth
Delivering High-Single-Digit EPS Growth DRIVEN BY OPERATING PROFIT GROWTH AND SHARE COUNT REDUCTION +9.1% (3.0)% +6.1% 324.1p 315.0p 297.0p +20.7p (2.0)p (1.2)p (7.0)p +16.6p (9.1)p FY24 Adjusted Interest Minorities Tax Number of FY25 Translation FY25 adjusted operating & JV shares constant currency
Slide 15: Delivering on Our Capital Allocation Priorities
Delivering on Our Capital Allocation Priorities STRONG CASH GENERATION SUPPORTING SHAREHOLDER RETURNS FY25 CASH FLOW OUR CAPITAL ALLOCATION PRIORITIES CONTINUED HIGH 12-MONTH FREE OPERATING CASH CONVERSION CASH FLOW 1 Investing in the strategy to drive sustainable growth 97% £2.7bn 15 | 12-month cas
Slide 16: FY26 Outlook: In Line With Medium-Term Guidance
FY26 Outlook: In Line With Medium-Term Guidance DELIVERING GROWTH AND DRIVING RETURNS • Low-single-digit constant currency tobacco net revenue growth Revenue • Double-digit constant currency NGP net revenue growth Profit • 3-5% constant currency adjusted operating profit (AOP) growth Cash generation
Slide 17: Operational and Strategic Update
Operational and Strategic Update Lukas Paravicini Chief Executive Officer Full Year Results | 18 November 2025 17
Slide 18: Maintaining Share in our Priority Markets
Maintaining Share in our Priority Markets ACHIEVING STRATEGIC OBJECTIVE OF MAINTAINING AGGREGATE MARKET SHARE Aggregate Weighted Priority Priority Market Shares Market Share Performance (12-Month Share Δ) +48 bps -1 bps +45 bps FY25: 0 bps -85 bps -145 bps -45 bps FY16 - FY20 FY21 - FY25 +20 bps Ful
Slide 19: US and Germany Performing Well
US and Germany Performing Well STRONG PRICE/MIX OFFSETTING VOLUME DECLINES Share: -1 bps Price/mix: 9.9% Share: +45bps Price/mix: 5.7% • Strong price/mix offsetting volume declines • Strong share growth, reversing long-term trend • Investing behind salesforce, coverage and visit frequency • Investin
Slide 20: Other Markets: Contributing to Group Performance
Other Markets: Contributing to Group Performance STRONG PRICING AND MANAGING SHARE OBJECTIVE -45 bps -85 bps +20 bps Price/mix: 5.0% Price/mix: 4.5% Price/mix: 19.3% Price/mix: 13.9% • Prioritising value over • Prioritising value over • High excise and illicit • Attractive long-term share share driv
Slide 21: Modern Oral: Brands Meeting Distinctive Needs
Modern Oral: Brands Meeting Distinctive Needs BUILDING SCALE IN THE US AND EUROPE FY25 MARKET SHARE ZONE: US Oral nicotine market share • Launched February 2024 • Distribution: c.100,000 stores +130 bps Data to September ‘25 • 2.8% national share; 4.0% in Imperial footprint SKRUF: EUROPE • Different
Slide 22: Growing Share in Vapour and Heated Tobacco
Growing Share in Vapour and Heated Tobacco CONSUMER-LED INNOVATION AND PRODUCT LAUNCHES DRIVING SHARE VAPOUR HEATED TOBACCO Vapour market share FY25 market share +160 bps +60 bps Data to August ’25 Data to August ‘25 • Investment focused in Europe • Continued share growth in footprint • Growing shar
Slide 23: An Ambitious Strategy: Strategic Pillars
An Ambitious Strategy: Strategic Pillars DELIVERING SUSTAINABLE GROWTH IN COMBUSTIBLES AND BUILDING SCALE IN NGP 2030 STRATEGY Driving sustainable Building Combustibles: laser- value in scale focus on growth levers in NGP combustibles Differentiated, Simplified, consumer efficient, and centric brand
Slide 24: An Ambitious Strategy: Strategic Enablers
An Ambitious Strategy: Strategic Enablers A CONFIDENT EVOLUTION AND A STEP-UP IN CAPABILITIES 2030 STRATEGY Investing in people, Driving Deeply understanding Building processes, tech and sustainable scale our consumers to build value in data to make faster, in NGP sharper brands combustibles more ag
Slide 25: Building Differentiated Brands
Building Differentiated Brands USING CONSUMER INSIGHTS TO DRIVE VALUE OUR BRANDS ARE REFINED USING OUR DISCIPLINED, BRAND BUILDING FRAMEWORK Gauloises – “Touch of Blue” • Modern take on historical Gauloises campaign Specific definition of our target WHO? consumer and prime prospect • Celebrating uni
Slide 26: Targeted Consumer-Centric Innovation
Targeted Consumer-Centric Innovation ENHANCED CONSUMER INSIGHTS INFORMING FOCUSED INNOVATION Gauloises Rich blu Kit Range Modern Oral Pulze 3.0 Gold Morocco Perfect Pouch • Deep, rich and modern • Developed to address • Market-leading pouch • Significant product tobacco taste consumer choice innovat
Slide 27: Transforming To Drive Sustainable Growth
Transforming To Drive Sustainable Growth WE ARE BECOMING A SIMPLER, MORE EFFICIENT AND DATA-LED ORGANISATION Data-led Organisation Manufacturing Excellence Sales Excellence • ERP roll out – go live in first • Footprint rationalisation to • Investment in skills and markets and production site support
Slide 28: An ESG Approach Aligned to Our Strategy
An ESG Approach Aligned to Our Strategy OUR PRIORITIES ARE FULLY ALIGNED WITH OUR PURPOSE AND COMMERCIAL GOALS 33-40% of subjects reduced 34% reduction in energy 47% reduction in lost time cigarette consumption* consumption since 2017** accidents since 2019*** Supporting Supporting Building scale in
Slide 29: Foundations in Place for the Next Five-Year Plan
Foundations in Place for the Next Five-Year Plan A CLEAR STRATEGY FOR VALUE CREATION Get even closer to our consumers and build differentiated brands Invest in our people, technology and data to drive growth and efficiency Generate sustainable value from combustibles Build scale in next generation p
Slide 30: Reinforcing an Attractive Investment Case
Reinforcing an Attractive Investment Case GLOBAL CONSUMER GOODS BUSINESS WITH ATTRACTIVE VALUATION OPERATIONAL DELIVERY FINANCIAL DELIVERY SHAREHOLDER RETURNS Sustainable growth in Supporting our medium- Progressive dividend tobacco term guidance • Growing dividend per share • Low-single-digit tobac
Slide 31: Q&A
Q&A Full Year Results | 18 November 2025 31
Slide 32: Appendices
Draft 24 v8 April – 102025 March 2025 – Draft 2 New photo Appendices Full Year Results | 18 November 2025 32
Slide 33: Cigarette Affordability Remains High
Cigarette Affordability Remains High SUPPORTING CONTINUED STRONG PRICING IN IMPERIAL MARKETS AFFORDABILITY OF TOBACCO Imperial top 5 markets (# Packs earned per hour of work at average salary) Imperial significant presence 4.4 4.3 3.9 3.7 3.6 3.6 2.6 2.1 1.9 1.8 1.4 1.4 1.1 0.7 0.7 0.7 0.6 0.6 0.5 G
Slide 34: NGP Preferences Vary by Market
NGP Preferences Vary by Market CONSUMER NGP CHOICES VARY BETWEEN MARKETS CATEGORY RETAIL SALES VALUE PENETRATION RATE (2024) 1% 3% 5% 2% 1% 3% 1% 2% 7% 6% 5% 15% 17% 17% 14% 20% 8% 22% 27% 3% 3% 6% 41% 1% 2% 1% 27% 30% 1% 99% 96% 93% 93% 81% 83% 80% 80% 74% 72% 58% 52% 49% Australia Spain Germany US
Slide 35: NGP: Attractive Margins in Markets with Scale
NGP: Attractive Margins in Markets with Scale BUILDING SCALE IS DRIVING NGP MARGINS INDUSTRY GROSS MARGINS IMB MARKETS WITH SCALE FY25 IMB GROSS MARGINS VAPOUR 45% - 55% FY24 VAPOUR GROSS MARGINS* c.50% c.45% HEATED TOBACCO HEATED 60% - 70% GROSS MARGINS* Currently building scale to enhance margins
Slide 36: Investing To Drive Sustainable Growth & Savings
Investing To Drive Sustainable Growth & Savings UNLOCKS GROWTH OPPORTUNITIES AND EFFICIENCIES Investing in Sustainable Growth and Efficiency Initiatives An Agile Data-Led Enterprise Manufacturing Excellence • Leveraging our scale through global business • Adopting a standardised operating model base
Slide 37: A Clear Five-Year Strategy For Value Creation
A Clear Five-Year Strategy For Value Creation MEDIUM-TERM CAGR GUIDANCE - FY26 TO FY30 Tobacco & NGP Low-single digit tobacco net revenue growth net revenue* Double-digit NGP net revenue growth Group adjusted 3-5% constant currency growth operating profit Adjusted EPS At least high-single digit cons
Slide 38: Group Financials
Draft 24 v8 April – 102025 March 2025 – Draft 2 New photo Appendices Group Financials
Slide 39: Net Revenue
Net Revenue +4.1% (2.2)% +1.9% £8,490m £8,316m £8,157m £(130)m +£418m +£45m £(174)m FY24 tobacco Tobacco Tobacco NGP net FY25 constant Translation FX FY25 tobacco & NGP net volume price mix revenue currency net & NGP net revenue revenue revenue Full Year Results | 18 November 2025 39
Slide 40: Adjusted Operating Profit Growth
Adjusted Operating Profit Growth +4.6% (2.6)% 2.0% +4.9% £4,091m £3,911m £3,988m +£176m +£1m +£3m £(103)m FY24 adjusted Tobacco Reduced Logista* FY25 Translation FY25 adjusted operating profit performance NGP losses constant currency FX operating profit adjusted operating profit * Including eliminat
Slide 41: Group Adjusted Results
Group Adjusted Results Constant Foreign Constant FY24 Currency FY25 Actual ∆ Exchange Currency ∆ Growth Tobacco net revenue £m 7,828 (168) 288 7,948 1.5% 3.7% NGP net revenue £m 329 (6) 45 368 11.9% 13.7% Tobacco & NGP adj. operating profit £m 3,587 (99) 177 3,665 2.2% 4.9% Tobacco & NGP adj. profit
Slide 42: Group Adjusted Results
Group Adjusted Results FY25 FY24 Group adjusted operating profit £m 3,988 3,911 Adjusted net finance costs £m (413) (402) Share of profit of JVs £m 12 9 Adjusted profit before tax £m 3,587 3,518 Adjusted effective tax rate % 23.3% 22.7% Adjusted EPS pence 315.0 297.0 Dividend per share pence 160.3 1
Slide 43: Reconciliation: Reported to Adjusted
Reconciliation: Reported to Adjusted Structural Net fair Amortisation Adjustments changes to value and Post- Effect of £m and Utilisation of above Restructuring defined exchange employment Tax interest discounting on Uncertain tax Prior year (unless otherwise Reported FY25 impairment of deferred tax
Slide 44: Income Statement
Income Statement £m (unless otherwise stated) FY25 FY24 Revenue 32,171 32,411 Adjusted operating profit 3,988 3,911 Amortisation and impairment of acquired intangibles (369) (353) Restructuring costs (122) - Structural changes to defined benefit pension schemes (7) (4) Share of profit of investments
Slide 45: Balance Sheet
Balance Sheet FY25 FY24 £m Non-current assets: tangible 3,695 3,692 intangible 16,208 15,938 Current assets: inventories 4,466 4,080 other 4,346 4,116 Current liabilities (11,854) (11,462) Non-current liabilities (11,429) (10,335) Net assets 5,432 6,029 Full Year Results | 18 November 2025 45
Slide 46: Cash flow
Cash flow £m FY25 FY24 Group operating profit 3,490 3,554 Depreciation, amortisation and impairments 781 647 EBITDA 4,271 4,201 Other non-cash movements (60) (106) Operating cash flows before movement in working capital 4,211 4,095 Working capital (71) 100 Tax cash flow (513) (888) Cash flows from o
Slide 47: Net Finance Costs
Net Finance Costs £m FY25 FY24 Net finance costs (374) (534) Adjusted for: - interest income on net defined benefit assets (18) (22) - interest cost on net defined benefit liabilities 29 33 - net fair value & exchange (gains)/losses on financial instruments (13) 110 - tax settlement interest (income
Slide 48: Net Debt Reconciliation
Net Debt Reconciliation Fair value of Accrued Adjusted £m Reported FY25 Lease liabilities interest rate interest FY25 derivatives Opening net debt (8,340) 95 386 119 (7,740) Free cash flow 2,749 - - - 2,749 Contributions relating to share schemes 5 - - - 5 Acquisitions/disposals (77) - - - (77) Divi
Slide 49: Foreign Exchange
Foreign Exchange Average Closing FY24 FY25 ∆ FY24 FY25 ∆ USD $ 1.268 1.306 +3.02% 1.338 1.344 +0.41% EURO € 1.169 1.182 +1.11% 1.199 1.146 -4.39% AUD $ 1.923 2.030 +5.55% 1.931 2.030 +5.14% Full Year Results | 18 November 2025 49
Slide 50: Foreign Currency
Foreign Currency DIVISIONAL CURRENCY EXPOSURE Approximate weight of EUR / • €0.01 (1 cent) movement in the € currency in EUR Other Total Net Revenue GBP £ Linked USD $ AUD $ Currencies Other includes Euro has c. £23m impact on net revenue. Norwegian Krone, Europe 15% 75% 0% 0% 10% Swedish Krona Amer
Slide 51: FY26 Guidance
FY26 Guidance OTHER FINANCIAL ITEMS Financing & Cost of Debt Finance charge for FY26 expected to be c. £460m at current rates; all-in cost of debt of c. 4.6% for FY26 Tax Rate Expected to be c. 24% Capex Expect gross capex to be c. £300m-350m Cash Conversion Expect 90% to 100% range Foreign Exchange
Slide 52: Financing
Draft 24 v8 April – 102025 March 2025 – Draft 2 New photo Appendices Financing
Slide 53: Committed Financing Outstanding (£m)
Financial Profile 30 SEPTEMBER 2025 Interest Split* Currency Split Committed Funding Split (structural debt)** 2% 5% Fixed Bonds Issues Floating EUR 20% Bank (Syndicated) Bank (Bilaterals) 98% 100% 75% 14,000 Committed Financing Outstanding (£m) 12,000 £3.75bn headroom against facilities 10,000 8,00
Slide 54: Committed Bank Facilities
Committed Bank Facilities 30 SEPTEMBER 2025 Description Maturity date Amount (EUR m) £m equiv. Committed 3.5-year Revolving Credit Facility 31 March 2029 3,000 2,618 Total 2,618 Description Maturity date Amount (GBP m) £m equiv. Bilateral Committed Credit Facilities September 2026 700 700 Total 700
Slide 55: Bond Issues
Bond Issues 30 SEPTEMBER 2025 Currency of issue Amount (ccy m) Issuer Coupon Issue Date Maturity Date £m equiv. EUR 650 Imperial Brands Finance PLC 3.375% Feb-14 Feb-26 567 USD 400 Imperial Brands Finance PLC 3.500% Jul-19 Jul-26 298 GBP 188 Imperial Brands Finance PLC 5.500% Sep-11 Sep-26 191 EUR 7
Slide 56: Glossary
Glossary Stick Equivalent (SE) volumes reflect our combined cigarette, fine cut tobacco, cigar and SE snus volumes. Change at constant currency removes the effect of exchange rate movements on the Constant Currency translation of the results of our overseas operations. Total Tobacco includes cigaret