Imperial Brands Plc · LSE:IMB
Imperial Brands — Q2 2026 Earnings Presentation
56 slides from Imperial Brands's earnings presentation, May 12, 2026
Slide 1: Imperial Brands Half Year Results
Imperial Brands Half Year Results 12 May 2026
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
Slide 4: Results Overview
Results Overview Lukas Paravicini Chief Executive Officer
Slide 5: Another Half of Consistent Delivery
Another Half of Consistent Delivery POSITIVE START TO FY26 AND IMPLEMENTATION OF 2030 STRATEGY 1 Generating strong cash and consistent returns 2 Well-placed to deliver on full-year expectations Building on our role as the industry’s focused challenger; creating value through 3 enhanced consumer capa
Slide 6: Half Year Delivery Driving Shareholder Returns
Half Year Delivery Driving Shareholder Returns OPERATIONAL FINANCIAL SHAREHOLDER DELIVERY DELIVERY RETURNS TOP FIVE AGGREGATE SHARE TOBACCO & NGP NET REVENUE* DIVIDEND PER SHARE -16bps +1.8% +4.0% +48bps over the last five years NGP NET REVENUE* ADJUSTED EPS* FY26 BUYBACK COMMITMENT +7.5% +5.3% £1.4
Slide 7: Perform and Transform
Perform and Transform EVOLVING THE DISTINCTIVE CHALLENGER APPROACH • Strong pricing driving net revenue growth across all regions Driving sustainable • Focus brands growing share and revenue value in combustibles • Europe (8.1%) and AAACE ex Aus (12.8%) AOP performing strongly Driving Building susta
Slide 8: Financial Review and Outlook
Financial Review and Outlook Murray McGowan Chief Financial Officer
Slide 9: Continued Financial Delivery
Continued Financial Delivery SUSTAINING STRONG CAPITAL RETURNS TOBACCO & NGP NET REVENUE GROUP AOP 12-MONTH FREE CASHFLOW +1.8% +0.6% £2.6bn Europe AOP: 8.1%; AAACE (ex Aus): 12.8% NGP NET REVENUE ADJUSTED EPS ADJUSTED NET DEBT TO EBITDA +7.5% +5.3% 2.4x Constant currency Half Year Results | 12 May
Slide 10: Tobacco Price Mix Offsetting Volume Declines
Tobacco Price Mix Offsetting Volume Declines GROWING TOBACCO NET REVENUE ACROSS ALL REGIONS Net Revenue % +2.1% +1.5% +0.8% +1.5% 6.0% 5.7% 3.0% 1.5% -1.5% -0.7% -3.9% -4.2% Europe Americas AAACE Group Volume Price / Mix Net Revenue £1.4bn £1.2bn £0.9bn £3.6bn Tobacco only at constant currency Half
Slide 11: Growing Adjusted Operating Profit
Growing Adjusted Operating Profit PERFORMANCE TO BE WEIGHTED TO THE SECOND HALF AS GUIDED +0.6% +1.2% £1,662m £1,652m +£23m £(3)m £(10)m HY25 AOP Tobacco performance NGP performance Logista* HY26 constant currency AOP * Including eliminations Half Year Results | 12 May 2026 11
Slide 12: Adjusted Operating Profit One Offs
Adjusted Operating Profit One Offs REDUCED IMPACT IN H2 SUPPPORTS IMPROVED PERFORMANCE AND FY DELIVERY H1 2026 AOP impacts • US: MMC tariffs Combustibles • Australia: impact of accelerated volume decline on AOP >£50m impact in the first half • US OND: impact from promotions over year-end NGP • US va
Slide 13: Operating Profit: Adjusting Items
Operating Profit: Adjusting Items 2030 STRATEGY COSTS AND DELAWARE COMPRISE MAJORITY OF ADJUSTMENTS HY26 reported operating profit £925m Amortisation and impairment of acquired £170m intangibles • Including Langenhagen closure and 2030 Strategy programme £210m Capgemini strategic partnership • Of wh
Slide 14: Delivering Continued EPS Growth
Delivering Continued EPS Growth OPERATING PROFIT GROWTH AND SHARE COUNT REDUCTION, OFFSET BY INTEREST +5.3% (2.2)% +3.1% 130.5p 127.7p 123.9p +1.2p (2.0)p +0.6p +0.3p +6.5p (2.8)p HY25 Adjusted Interest Minorities Tax Number of HY26 Translation HY26 adjusted operating & JV shares constant currency F
Slide 15: On Track with FY26 Capital Allocation
On Track with FY26 Capital Allocation STRONG FREE CASH FLOW SUPPORTING SHAREHOLDER RETURNS CASH FLOW OUR CAPITAL ALLOCATION PRIORITIES CONTINUED HIGH 12-MONTH FREE Investing in the strategy to drive 1 OPERATING CASH CASH FLOW CONVERSION sustainable growth 98% £2.6bn Maintaining full year leverage at
Slide 16: Maintaining Full Year Guidance
Maintaining Full Year Guidance H2 WEIGHTED AS PREVIOUSLY GUIDED FY26 OUTLOOK* • Low-single-digit net revenue growth Revenue • Double-digit NGP net revenue growth Profit • Adjusted operating profit in the 3%-5% range EPS • At least high-single-digit EPS growth, driven by AOP growth and buyback Cash f
Slide 17: Operational and Strategic Update
Operational and Strategic Update Lukas Paravicini Chief Executive Officer
Slide 18: Our Evolved Strategy
Our Evolved Strategy BUILDING ON THE STRONG FOUNDATIONS FROM THE LAST FIVE YEARS Driving 2030 STRATEGY sustainable Building scale value in in NGP combustibles Perform and transform Good underlying performance across our strategic pillars while Differentiated, Simplified, delivering clear progress wi
Slide 19: Balancing Share and Value in Priority Markets
Balancing Share and Value in Priority Markets NOT ALL POINTS OF MARKET SHARE ARE EQUAL HY26 PRIORITY MARKET FOCUSING OUR APPROACH TO MARKET SHARE SHARES (12-MONTH SHARE Δ) US Germany Spain -20 bps Gross Margin +5 bps Differential Difference between industry GM/000 c. 7x c. 3x c. 2.5x at top and bott
Slide 20: US: Strong Combustibles Business
US: Strong Combustibles Business HIGH AFFORDABILITY, PRICING OFFSETTING VOLUME DECLINES CIGARETTES • Strong cigarette pricing, offsetting industry volume declines of 5.5% • Growing share in the premium segment • Launched deep discount brand Malibu in March • Profitability impacted by Delaware settle
Slide 21: Priority Markets: Balancing Value and Share
Priority Markets: Balancing Value and Share MARKET SPECIFIC APPROACH • Attractive market dynamics • Low single digit market • Market size affected by • High excise, regulation and with good affordability volume decline excise and illicit illicit driving volume declines • Continued market share • Enh
Slide 22: NGP: Following a Multi-Category Approach
NGP: Following a Multi-Category Approach BUILDING SCALE ACROSS ALL CATEGORIES Total # of markets 20 7 8 # of markets where we are in the top 3 4 2 5 Share vs. prior year +130bps +10bps +50bps HY26 gross margins in 50% - 55% 65% - 70% 50% - 55% markets with scale Key markets - share 10% - 45% 5% - 30
Slide 23: US OND: Investment Driving Category Growth
US OND: Investment Driving Category Growth ZONE CONTINUES TO DELIVER STRONG VOLUME AND SHARE GROWTH INDUSTRY IMPERIAL PERFORMANCE HY26 Volume NR $/can HY26 Volume Share Net Revenue +31% -18% +40% +18bps +20%* excluding one-off impact of promotional activity • Nascent, rapidly growing category • Zone
Slide 24: Modern Oral: Consumer-led Product Innovation
Modern Oral: Consumer-led Product Innovation GROWING VOLUME IN THE US AND EUROPE HY26 MARKET SHARE EUROPEAN ZONE AND SKRUF Oral nicotine market share • Continuing momentum in Europe +10 bps Data to Feb ‘26 • Improved pouch format launched in Sweden • Innovation, immediate intensity and ZONE US lasti
Slide 25: Vapour: blu Brand Trusted By Consumers
Vapour: blu Brand Trusted By Consumers GAINING SHARE ACROSS FOOTPRINT DRIVEN BY BLU KITS HY26 MARKET SHARE • Investment focused in Europe Vapour market share • Double-digit share in key markets (UK, Spain and France) +130 bps Data to Feb’26 • Transitioning at pace to rechargeable devices • Authentic
Slide 26: Heated Tobacco: Showing Consistent Growth
Heated Tobacco: Showing Consistent Growth CLEAR CONSUMER FOCUS HY26 MARKET SHARE • Share growth across all market within footprint Heated tobacco market share • Successful roll out of Pulze 3.0 +50 bps Data to Feb’ 26 • Smallest 25+ session all-in-one device • Increased heating zone and new airflow
Slide 27: Consumer-centric Innovation
Consumer-centric Innovation LEVERAGING BRAND BUILDING FRAMEWORK TO BUILD BRAND EQUITY DAVIDOFF TRUEWRAPS PERFECT POUCH AND HEATED TOBACCO BY BACKWOODS FLAVOUR INNOVATION ID STICKS • Davidoff Rose slims • Consumer-led innovation • UK launch: strong initial • Stick innovation with launched in the prem
Slide 28: Becoming A Data-led & Efficient Organisation
Becoming A Data-led & Efficient Organisation STRONG MOMENTUM BEHIND OUR TRANSFORMATION AGENDA EFFICIENCY REVENUE GROWTH £320m costs saving p.a. by 2030 Enhanced capabilities to support growth Well on track with delivery • Factory footprint rationalisation – c. 600 FTE reduction • Capgemini partnersh
Slide 29: Another Half of Consistent Delivery
Another Half of Consistent Delivery POSITIVE START TO FY26 AND IMPLEMENTATION OF 2030 STRATEGY 1 Generating strong cash and consistent returns 2 Well-placed to deliver on full-year expectations Building on our role as the industry’s focused challenger; creating value through 3 enhanced consumer capa
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-term Progressive dividend tobacco guidance • Growing annually reflecting • Low-single-digit tobac
Slide 31: Q&A
Q&A
Slide 32: Appendices
Draft 24 v8 April – 102025 March 2025 – Draft 2 New photo Appendices
Slide 33: Cigarette Affordability
Cigarette Affordability 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 Germany USA It
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 MARGIN ACCRETION INDUSTRY GROSS MARGINS IMB MARKETS WITH SCALE HY26 IMB GROSS MARGINS VAPOUR GROSS VAPOUR 45% - 55% MARGINS* 50%-55% HEATED TOBACCO HEATED 60% - 70% GROSS MARGINS* 50%-55% Currently building scale to enhance
Slide 36: 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 co
Slide 37: Group Financials
Draft 24 v8 April – 102025 March 2025 – Draft 2 New photo Appendices Group Financials
Slide 38: Net Revenue
Net Revenue +1.8% (0.0)% +1.8% £3,730m £3,729m £3,664m £(51)m £105m £12m £(1)m HY25 tobacco Tobacco Tobacco NGP net HY26 constant Translation FX HY26 tobacco & NGP net volume price mix revenue currency tobacco & NGP net revenue & NGP net revenue revenue Half Year Results | 12 May 2026 38
Slide 39: Adjusted Operating Profit Growth
Adjusted Operating Profit Growth +0.6% (1.1)% (0.5)% +1.2% £1,662m £1,652m £1,644m £23m £(3)m £(10)m £(18)m HY25 adjusted Tobacco NGP Logista* HY26 Translation HY26 adjusted operating profit performance performance constant currency FX operating profit adjusted operating profit * Including eliminati
Slide 40: Group Adjusted Results
Group Adjusted Results Constant Foreign Constant HY25 Currency HY26 Actual ∆ Exchange Currency ∆ Growth Tobacco net revenue £m 3,504 (5) 54 3,553 1.4% 1.5% NGP net revenue £m 160 4 12 176 10.0% 7.5% Tobacco & NGP adj. operating profit £m 1,486 (27) 20 1,479 (0.5)% 1.3% Tobacco & NGP adj. profit marg
Slide 41: Group Adjusted Results
Group Adjusted Results HY26 HY25 Group adjusted operating profit £m 1,644 1,652 Adjusted net finance costs £m (223) (199) Share of profit of JVs £m 3 4 Adjusted profit before tax £m 1,424 1,457 Adjusted effective tax rate % 23.5% 23.5% Adjusted EPS pence 127.7 123.9 Dividend per share pence 80.4 80.
Slide 42: Reconciliation: Reported to Adjusted
Reconciliation: Reported to Adjusted Amortisation Net fair value and Settlement Post- Recognition Adjustments and 2030 Strategy Other exchange £m cost of employment Tax interest and utilisation attributable to Reported HY26 impairment of review adjusting movements on Adjusted HY26 (unless otherwise
Slide 43: Income Statement
Income Statement £m (unless otherwise stated) HY26 HY25 Revenue 14,719 14,604 Adjusted operating profit 1,644 1,652 Amortisation and impairment of acquired intangibles (170) (183) 2030 Strategy review programme (210) (6) Settlement costs of historic legal cases (313) - Other adjusting items (26) (7)
Slide 44: Balance Sheet
Balance Sheet HY26 HY25 £m Non-current assets: tangible 3,776 3,713 intangible 16,118 16,050 Current assets: inventories 4,579 4,529 other 3,759 3,564 Current liabilities (11,950) (11,908) Non-current liabilities (11,675) (10,418) Net assets 4,607 5,530 Half Year Results | 12 May 2026 44
Slide 45: Cash flow
Cash flow £m HY26 HY25 Group adjusted operating profit 1,644 1,652 Depreciation, amortisation and impairments 156 146 EBITDA 1,800 1,798 Other non-cash movements (40) (14) Operating cash flows before movement in working capital 1,760 1,784 Working capital (1,336) (1,425) Tax cash flow (363) (372) Ca
Slide 46: 12-month Cash Conversion
12-month Cash Conversion HY26 HY25 £m (unless otherwise stated) Net cash flow from operating activities 3,526 3,334 Tax 504 835 Net capex (356) (351) 2030 Strategy and restructuring cash costs 75 38 Settlement costs of historic legal cases 150 - Cash flow post capex pre interest and tax 3,899 3,856
Slide 47: Net Finance Costs
Net Finance Costs £m HY26 HY25 Net finance costs (137) (162) Adjusted for: - interest income on net defined benefit assets (9) (9) - interest cost on net defined benefit liabilities 15 14 - net fair value & exchange gains on financial instruments (93) (33) - tax settlement interest cost/ (income) 1
Slide 48: Net Debt Reconciliation
Net Debt Reconciliation Fair value of Accrued Adjusted £m Reported HY26 Lease liabilities interest rate interest HY26 derivatives Opening net debt (8,954) 123 402 23 (8,406) Free cash flow (663) - - - (663) Finance lease interest cash flow 8 - (54) - (46) Dividends paid to owners of the parent (637)
Slide 49: Foreign Exchange
Foreign Exchange Average Closing HY25 HY26 ∆ HY25 HY26 ∆ USD $ 1.271 1.339 5.38% 1.293 1.326 2.58% EURO € 1.199 1.147 (4.34%) 1.197 1.150 (3.88%) AUD $ 1.987 1.983 (0.19%) 2.076 1.926 (7.19%) Half Year Results | 12 May 2026 49
Slide 50: FY26 Guidance
FY26 Guidance OTHER FINANCIAL ITEMS Financing & Cost of Debt Finance charge for FY26 expected to be c. £470m at current rates; all-in cost of debt of c. 4.6% for FY26 Tax Rate Expected to be c. 23%-24% Capex Expect net capex to be c. £300m-350m Cash Conversion Expect 90% to 100% range Foreign Exchan
Slide 51: 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. £13m impact on net revenue. Norwegian Krone, Europe 15% 75% 0% 0% 10% Swedish Krona Amer
Slide 52: Financing
Draft 24 v8 April – 102025 March 2025 – Draft 2 New photo Appendices Financing
Slide 53: Committed Financing Outstanding
Financial Profile 31 MARCH 2026 Interest Split* Currency Split Committed Funding Split (structural debt)** 4% 5% 13% Fixed CP EUR Floating 19% Bank (Bilaterals) 72% Bank (Syndicated) 87% Bonds Issues 100% 14,000 Committed Financing Outstanding (£m) £2.84bn headroom against facilities 12,000 10,000 C
Slide 54: Committed Funding
Committed Funding 31 MARCH 2026 Description Maturity date £m equiv. Bond Issues Various to July 2055 10,038 Total 10,038 Description Maturity date £m equiv. Revolving Credit Facility 31 March 2029 2,608 Bilateral Credit Facilities September 2026 700 Total 3,308 Description Maturity date £m equiv. Co
Slide 55: Bond Issues
Bond Issues 31 MARCH 2026 Currency of Amount Issuer Coupon Issue Date Maturity Date £m equiv. issue (ccy m) USD 400 Imperial Brands Finance PLC 3.500% Jul-19 Jul-26 297 GBP 188 Imperial Brands Finance PLC 5.500% Sep-11 Sep-26 194 EUR 750 Imperial Brands Finance PLC 2.125% Feb-19 Feb-27 652 USD 1,000
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