Imperial Brands Plc · LSE:IMB
Imperial Brands — Investor Day (June 2023)
35 slides from Imperial Brands's investor day presentation, Jun 27, 2023
Slide 1: New Approach To Marketing & Portfolio Strategy
Jose Cabrera Global Marketing & Portfolio Director 27 JUNE 2023 – INVESTOR EVENT 63 | 63 New Approach To Marketing & Portfolio Strategy To leverage marketing and portfolio as a challenger Our Past Now and the future… • Investment in international • Consumer-led brands at the expense of local brands
Slide 2: Enhanced Central Brand Building Capabilities
Enhanced Central Brand Building Capabilities With clearly differentiated roles and responsibilities Global & central functions Markets Consistent Unique brand Insights & portfolio strategy positioning analytics Local Local go-to- Sales consumer market adaptation excellence experience working togethe
Slide 3: Consistent Portfolio Strategy and Management
We show up with relevant brands globally With both our global and local jewel brands 67 | 67 Consistent Portfolio Strategy and Management Process focused on balancing share and profit Three-year market ambition Clear priorities Consumer & market landscape Portfolio • Brand priorities with 3-5 years
Slide 4: Identifying New Opportunities in Markets
Identifying New Opportunities in Markets To which we can offer credible solutions AUSTRALIA GERMANY MOROCCO CZECH REPUBLIC Opportunity: Opportunity: Opportunity: Opportunity: 25-40 year old value- capture down-traders Offer value to lower target older, predominantly minded consumers income smokers m
Slide 5: New Consumer Insights
New Consumer Insights Inspired adjusted brand positioning for our global brands FROM TO Davidoff inspires entrepreneurially-minded smokers to shape their own future JPS supports grassroots musicians to Let the Players Play Parker & Simpson celebrates and rewards local grafters 71 | 71 Stepping up ou
Slide 6: A Clear Positioning for our Local Brands: Nobel
We create meaningful consumer experiences at the key moments of truth 73 | 73 A Clear Positioning for our Local Brands: Nobel Relaunch of Nobel in the Spanish market Understanding the A brand equity snapshot – what does it stand for? consumer Target female +25 yrs Brand Purpose Consumer Consumer Big
Slide 7: Nobel transformation starting with the package
We took an “old” brand and began a transformation starting with the package Consideration +1,5pp Brand Equity +1,9pp + modern + stylish + actual 75 | 75 Nobel began to own “modern art” via limited edition packs and campaigns highlighting the beauty of urban art + artistic + creative + unique 76 | 76
Slide 8: Breaking Moulds, Shaking Up the Sector
BREAKING MOULDS SHAKING UP THE SECTOR 77 | 77 disruptive + young + actual +0,41% Since January 2021 78data *Sell out | from ’21 to ‘23 78
Slide 9: A brand that is not afraid to express itself
A brand that is not afraid to express itself + switching loyalty 79 | 79 New segments delivering results 0,33% in 6 months 80 | 80
Slide 10: Unlocking our Portfolio – Summary
Nobel is the fastest growing brand in Spain 81 | 81 Unlocking our Portfolio – Summary Our differentiated approach Consumer-led; informed by Dimensions model Uses both global and local brands to meet distinct consumer preferences Enabling active portfolio management: clear category and brand roles Co
Slide 11: Bringing a New Approach to Building Iconic US Brands
Kim Reed and Rishi Dhingra Pres ident & CEO and Exe c utive Vice Pres iden t Mark etin g US 27 JUNE 2023 – INVESTOR EVENT 83 | 83 Bringing a New Approach to Building Iconic US Brands Deep consumer understanding and a “challenger mindset” Collaborating with our global consumer office to drive local e
Slide 12: US is the Largest Market for Imperial
A Clear Plan to Enhance Performance Focusing behind the operational levers SIX OPERATIONAL LEVERS IN OUR FIVE PRIORITY MARKETS Cigarettes 1 Increase participation in premium value segment 2 Drive and rejuvenate local jewel brands Collaborating with Global Consumer 3 Optimise our approach to the valu
Slide 13: A Brand Portfolio to Meet a Range of Consumer Needs
A Brand Portfolio to Meet a Range of Consumer Needs We have simplified our brand portfolio since acquisition OUR CIGARETTE BRAND PORTFOLIO FOCUS BRANDS % OF % of CIGARETTE VOLUMES 10.8% total ITG mix Tail Tail 12 $9.25 Brands Brands 28 2.13% 88% Premium 40% Value 72% Focus 2.06% Brands Average Focus
Slide 14: Winston & Kool Share has Stabilised Under Our Ownership
Winston & Kool Share has Stabilised Under Our Ownership These iconic brands are an important part of our portfolio LATENT EQUITY WITH STRONG POTENTIAL • After decades of decline we 2.13% have stabilised market 2.02% shares 2.06% 1.75% • Strong heritage supports good consumer recognition • Key part o
Slide 15: Addressing Winston Opportunities
91 Addressing Winston Opportunities Key drivers to reignite the Winston brand with target consumers CONSUMER FEEDBACK QUALITY AND TASTE BRAND FOR SOMEONE PREMIUM QUALITY AT 1 PERCEPTION 2BRAND FOR SOMEONE LIKE ME LIKE ME PREMIUM QUALITY 3 AFFORDABLE COST Non-trialists Users 86% 22% 54% 49% 47% 8% 23
Slide 16: Winston equity building
TRAVIS: RENAE EQUITY BUILDING PRODUCT COMMUNICATIONS UR TOBACCO DIE * . “Whiston 21015 94
Slide 17: Reigniting KOOL with Adult Smokers
95 | 95 Reigniting KOOL with Adult Smokers Increasing investment behind a consistent consumer proposition KOOL scores highly with Key challenge is consumers across historical brand FEEDBACK purchase intent metrics under-investment CLEAR PLATFORMS TO CONNECT Festivals and music Fashion and art Social
Slide 18: Consumer Acquisition Through Digital
CONSUMER ACQUISITON THROUGH DIGITAL TuoRNrows & K@)L $5 $2004 4 FUEL ENTER FOR A CHANCE TO WIN A $500 GAS CARD $2.00 OFF S3000FF UPCOMING
Slide 19: Winning Value Equation
WINNING VALUE EQUATION DOWNLOAD THE SAVINGS SAVE S1 NOW! FILTER KINGS ave mento. PK GO TO MARKET EXCELLENCE K@DLCOIN * coon, KOI 100
Slide 20: In Summary: Winston & Kool Brand Equity Supports Market Share
Winston & Kool Brand Equity Supports Market Share Consistently growing share of premium value segment against tough consumer back drop 13.06% 12.62% 12.85% 11.72% 12.40% 10.90% 2019 2021 HY23 2019 2021 HY23 101 | Source: MAT market share of segment 101 In Summary US remains attractive market with co
Slide 21: Helping Consumers on NGP Risk Continuum
Melvin Ruigrok Head of NGP 27 JUNE 2023 – INVESTOR EVENT 103 | 103 Helping Consumers on NGP Risk Continuum Focus on harm reduction and consumer experience NGP provides potentially reduced risk alternatives to cigarettes The relative risk scale indicates their relative harm Heated tobacco Oral Nicoti
Slide 22: NGP Growth Accelerating Across our Footprint
NGP Growth Accelerating Across our Footprint Consumer adoption varies by region and market Category penetration (RSV in £bn) in % NGP RSV in £bn split by category 10.1% 6.6% 19.5 6.9 Combustible Heated Tobacco 2.8x Vapour 3% 2% 0.7 Modern Oral 5% 7% 5.7 90% 93% 13.1 2.0 4.9 Europe USA Europe USA 105
Slide 23: Differentiated, Challenger Approach
Differentiated, Challenger Approach Validation of our consumer-focused approach Targeted investment and recognised consumer acceptance are driving revenue growth 2020 Now and the future… • Portfolio overly focused on • Rebooted strategy embracing a multicategory vapour approach • Ageing vapour devic
Slide 24: Disciplined Market Entry Strategy
Disciplined Market Entry Strategy As a challenger, we have clear market entry criteria Launching in markets with established NGP categories and where we have a strong, existing route-to-market PRODUCT FY22 FY23 PULZE/ PULZE 2.0 BLU 2.0 BLU BAR ZONE X 5 3 3 5 3 1 109 | 109 Consumers at the Centre of
Slide 25: Consumers at the Centre of our NGP
Consumers at the Centre of our NGP Clearly differentiated target consumer targeting life stages CONSIDERATE NEXT LIFE BALANCERS STEPPERS EDITORS • 40-55 years old • 30-40 years old • 25-34 years old • Family oriented, tech for • Family-oriented, tech for • Experience lovers, convenience convenience
Slide 26: Building Differentiated Consumer Experiences
Building Differentiated Consumer Experiences Ongoing consumer involvement to optimise product and brand concepts 360° consumer involvement Consumers experience all our Our new blu 2.0 device was We tested our new HT in developing brand/product product concepts in their tested in four cities in Franc
Slide 27: Introducing Pulze 2.0
115 Introducing > \ PULZE-2.0 WHEN DINNER CAN WAIT, BUT THE STORIES CAN'T GOVERNMENT HEALTH WARNING IMPERIAL BRANDS 2 TASTE MODES: INTENSE OR MILD When the flavour goes where the conversation flows GOVERNMENT HEALTH WARNING 116 | 116
Slide 28: Lifestyle Hybrid
LIFESTYLE HYBRID 117 | 117 Flavours for a rich Reusable and smooth taste for less waste Ergonomically designed for comfort 1400 Puffs Features: per pod* LED indicator, power tap, magnetic pod connector, vape while charging Advanced Compact pocket size for on-the- ceramic pod technology Ready to use
Slide 29: Get Unlit
GET UNLIT = —— Me imperia WARNING: This product contains nicotine. 4 ANDS WARNING: This product contains nicotine. ¥ Nicotine is an addictive chemical. THE ONLY THING YOU Nicotine is an addictive chemical. HE ‘URE DI a " WHOLE ISTHEGRILL. WEEKEND. 4 blu GET UNLIT 120
Slide 30: Flavour Is the No. 1 Driver of Category Growth
=. FLAVOUR IS THE NO. { DRIVER VALUE ~ OF THE CATEGORY GROWTH a1% 26% Of Consumers Put Flavour First CAGR for the Category Global to 2027 WICOTINE POUCHES PRODUCT FEATURES AND FUNCTIONAL BENEFITS Specialist Bamboo based platform es Optimal mouth feel and extra soft pouch paper and balanced flavour r
Slide 31: New Taste
»New Taste« : Mint Lime =: , ZONE OUT WITH x HAVANABREEZE f DZ I WaAVAt s “ XS Be %,
Slide 32: Our Responsibility: Maintain Highest Standards
Our Responsibility: Maintain Highest Standards Responsible NGP regulation to help consumers transition Recognition of the role NGP plays in transitioning adult smokers to 1 potentially reduced risk products 2 Excise models in proportion to the harm reduction potential of NGP Quality standards and en
Slide 33: Momentum is Building with Consumers
Momentum is Building with Consumers Consistent net revenue growth and progress against NGP contribution NGP Europe £m net revenue Top 10 markets: % NGP of total net revenue (HY23) Italy 41% Constant currency growth 29% 34% 35% Portugal 33% 166 Greece 28% Austria 25% 126 Norway 22% 98 102 Sweden 20%
Slide 34: Everything Starts with the Consumer
Stefan Bomhard Chief Executive Officer 27 JUNE 2023 – INVESTOR EVENT 129 | 129 Everything Starts with the Consumer New capabilities are creating a strong challenger business 130 | 130
Slide 35: Imperial Brands
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