Imperial Brands Plc · LSE:IMB
Imperial Brands — Deutsche Bank Global Consumer Conference 2018
19 slides from Imperial Brands's conference presentation, Jun 12, 2018
Slide 1: Deutsche Bank Global Consumer Conference
Deutsche Bank Global Consumer Conference Oliver Tant: CFO & Joerg Biebernick: Director Returns Division Paris | June 2018
Slide 2: Disclaimer
Disclaimer Certain statements in this presentation and financial effects of the plans and events prepared for, and only for the members of the constitute or may constitute forward-looking described in this presentation. As a result, Company, as a body, and no other persons. statements. Any statement
Slide 3: Our Strategy
Our Strategy Maximise sustainable shareholder returns Tobacco Maximisation and NGP Growth Strengthen Portfolio Develop Footprint Drive Cost Embed Capital right brands right markets Optimisation Discipline • Radically simplify • Prioritise growth • Simplify operating model • Maximise cash conversion
Slide 4: Delivering Against our Strategy
Delivering Against our Strategy Maximise sustainable shareholder returns Drive Cost Embed Capital Strengthen Portfolio Develop Footprint Optimisation Discipline Strengthened footprint 35% reduction in brands £370m savings to date through investment Consistent cash conversion 65% net revenue from Vol
Slide 5: Building Momentum
Building Momentum Growing revenue and profit, strong balance sheet Efficiency & Capital Momentum in Tobacco Significant NGP step up Discipline Focused investment Ongoing cost drives share gains in optimisation supports priority markets investment Volume performance Cash generation Positive initial r
Slide 6: Strategy Delivering Momentum through focused investment
Strategy Delivering Momentum through focused investment Tobacco Maximisation NGP Growth Continued share Significant step Innovation Growth Brands gains in priority up in NGP – pipeline supports gaining share markets - Group myblu rollout standout and growing volumes positive initial consumer volumes
Slide 7: Tobacco Max: Portfolio Focus
Tobacco Max: Portfolio Focus Growth Brands driving quality revenue Growth Brand Growth Brand • Successful simplification of portfolio Volumes Share – Migrations achieving c.95% retention; 69 complete +6.3% +100bps +1.6% ex. migration Up in all divisions • Focused investment driving Asset Brand reven
Slide 8: Focused Investments – Returns Markets
Focused Investments – Returns Markets Supporting key markets with targeted investment Strategic Choices How to win 8 | Deutsche Bank Consumer Conference | June 2017
Slide 9: Germany
Germany Investment in brand equity and distribution Tailor Customer Solutions Portfolio & Brand Investment Portfolio & Brand Investment MAT share 22.2% +10bps • Extending trade partnership approach • Key Account category management 24 bps 19 bps Core Range Everywhere • Portfolio initiatives capture
Slide 10: UK
UK Leading in a challenging market Tailor Customer Solutions Portfolio & Brand Investment Portfolio & Brand Investment 48.8 47.5 46.6 MAT share 41.9 41.9% +50bps Retailer A Retailer B Retailer C Share (%) Performance in Partner Customers FY13 FY14 FY15 FY16 FY17 FY18 • Partnerships in convenience ch
Slide 11: Spain, France & Australia
Spain, France & Australia Brand focus, activations & distribution Launched Nov’17 • 21.0% MAT share (+10 bps) Feb launch: now >1% • 29.2% MAT share (-80 bps) • Profit pool impacted by • WSE share growing • Improving blondes cigarette significant excise change share trajectory • JPS biggest brand in
Slide 12: Strengthening our Portfolio
Strengthening our Portfolio Growth Brands driving quality revenue Quality Growth in Returns Markets Growth Brand Revenue % Growth Brand Share 61% 58% 17.3% 16.7% 55% 15.5% 51% 14.8% 11.6% 43% 2014 2015 2016 2017 H1'18 2014 2015 2016 2017 H1 '18 12 | Deutsche Bank Consumer Conference | June 2018
Slide 13: Tobacco Max: Leverage Market Repeatable Model
Tobacco Max: Leverage Market Repeatable Model Investment delivering share gains Winston, Kool & Maverick up, JPS FMC & fine cut growth +10bps -20bps tail brands down, MMC up Driven by Players & Gold Leaf P&S queen size & crushball +50bps +60bps Temporary price impact; spot West #1 brand in market -1
Slide 14: Strategy Delivering Momentum through focused investment
Strategy Delivering Momentum through focused investment Tobacco Maximisation NGP Growth Continued share Significant step Innovation Growth Brands gains in priority up in NGP – pipeline supports gaining share markets - Group myblu rollout standout and growing volumes positive initial consumer volumes
Slide 15: Significant NGP Ambition
Significant NGP Ambition Additive revenue & profit opportunity Standout Increasing Consumer Profitability Experience Science & Regulation 15 | Deutsche Bank Consumer Conference | June 2018
Slide 16: Building Growth in Distribution
Building Growth in Distribution myblu rollout on track • Now in 6 markets • 10 markets by end FY18 • Summer launch of nicotine salts • Expanding distribution in traditional retail, vape stores and online 16 | Deutsche Bank Consumer Conference | June 2018
Slide 17: blu innovation pipeline
blu innovation pipeline Building differentiated consumer experiences To Now Next come myblu blu ACE Nicotine 3D Flavour Next gen Connectivity salts pod 17 | Deutsche Bank Consumer Conference | June 2018
Slide 18: Strategic Focus: Right Markets, Brands & Products
Strategic Focus: Right Markets, Brands & Products More active capital allocation Strategic Focus More Focus Strategic Benefits • Fewer brands, SKUs • More active portfolio • Enhanced growth focus management • Market prioritisation • Simplification/complexity • Divestments and exits reduction • NGP g
Slide 19: Improving Momentum into H2
Improving Momentum into H2 Platform for FY18 growth Sustained share growth in markets that matter Delivering quality revenue through strongest brand equities Improving price/mix momentum Stepping up NGP; revenue growth in H2 Disciplined capital approach supports 10% dividend growth 19 | Deutsche Ban
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