Imperial Brands Plc · LSE:IMB
Imperial Brands — Investor Day (March 2025)
111 slides from Imperial Brands's investor day presentation, Mar 26, 2025
Slide 1: Imperial Brands Capital Markets Day
Draft v8 – 10 March 2025 Imperial Brands Capital Markets Day 26 March 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 • Welcome from Chair • Building on Strong Foundations • Our 2030 Strategy • Building Differentiated Consumer Brands • Panel Q&As • Break – Tour of Booths • Driving Sustainable Value in Our Markets – USA – Europe – AAACE • Strategic Enablers – A High-Performance Culture – Simplified, Efficient
Slide 4: Welcome from Chair
Welcome from Chair Thérèse Esperdy Capital Markets Day | 26 March 2025 4
Slide 5: A Clear 2030 Strategy for Value Creation
A Clear 2030 Strategy for Value Creation • Current strategy has delivered stronger, more consistent results • Strong foundations in place to deliver 2030 strategy • Board has undertaken a rigorous review and explored all options for value creation • Our purpose and vision remain as guiding principle
Slide 6: Building On Strong Foundations
Building On Strong Foundations Stefan Bomhard Chief Executive Officer Capital Markets Day | 26 March 2025 6
Slide 7: Our 2030 Ambitions: The Next Five Years
Our 2030 Ambitions: The Next Five Years WE HAVE CLEAR OPPORTUNITIES TO BUILD ON STRONG FOUNDATIONS 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 nex
Slide 8: Our Strategy is Transforming Imperial Brands
Our Strategy is Transforming Imperial Brands DELIVERING A STRONGER AND MORE CONSISTENT PERFORMANCE THE LAST FOUR YEARS: WHAT HAVE WE ACHIEVED? Established our role as a focused challenger Created value through enhanced consumer capabilities Embedded a culture of consistent performance Strengthened c
Slide 9: Established Our Role as the Industry Challenger
Established Our Role as the Industry Challenger A DISTINCTIVE, CONSUMER CENTRIC AND FOCUSED APPROACH Combustibles: NGP: focus on Sales excellence Deep consumer laser-focus on markets and and strong Faster, more agile intimacy and growth levers in categories where retailer decision making data-driven
Slide 10: Enabled by Enhanced Consumer Capabilities
Enabled by Enhanced Consumer Capabilities WE START WITH THE CONSUMER LEVERAGING THE STRENGTHS AND CAPABILITIES OF OUR GLOBAL CONSUMER ORGANISATION Brand and Consumer Revenue growth portfolio Innovation insight management management 1,000 consumer- Global Consumer New consumer facing people Team esta
Slide 11: Refreshed Team has Broad FMCG Experience
Refreshed Team has Broad FMCG Experience BLENDING DEEP TOBACCO KNOWLEDGE WITH FMCG EXPERTISE • Broadest FMCG experience of any global tobacco executive team • 9 out of 11 new to Imperial • Retained deep tobacco experience • Strong capabilities in key areas • Experience of driving global transformati
Slide 12: Transforming Imperial Brands Culture
Transforming Imperial Brands Culture DELIVERING RESULTS THROUGH A PERFORMANCE-BASED CULTURE PERFORMANCE-BASED CULTURE DELIVERING A STRONGER PERFORMANCE More rigorous performance management through A strong operational monthly business reviews performance in combustibles and NGP Culture that prioriti
Slide 13: Delivering Share Gains in Priority Markets
Delivering Share Gains in Priority Markets ACHIEVING OUR OBJECTIVE OF MAINTAINING MARKET SHARE AGGREGATE WEIGHTED PRIORITY MARKET SHARE PERFORMANCE Meeting objective to stabilise share performance No longer the #1 share donor in the industry +48 bps Stronger combustible delivery: pricing and share -
Slide 14: Delivering NGP Net Revenue Growth
Delivering NGP Net Revenue Growth TURNAROUND IN NGP PERFORMANCE IS EVIDENT NGP STRATEGY DRIVING NET REVENUE GROWTH Constant currency -4% +11% +26% +26% growth NGP net 329 265 revenue, 188 208 £m FY21 FY22 FY23 FY24 Heated Tobacco Modern Oral Vapour Multi-category approach NGP: next generation produc
Slide 15: Improved Financial Delivery
Improved Financial Delivery DELIVERING AN ACCELERATION IN FINANCIAL PERFORMANCE IMPROVING TOBACCO & NGP NET STRONG GROUP ADJUSTED IMPROVING EARNINGS PER SHARE REVENUE GROWTH (%) OPERATING PROFIT GROWTH (%) GROWTH (%) 4.6% 10.9% 4.8% 4.6% 3.9% 2.3% 5.2% 4.3% 1.4% 1.4% 1.9% 2.8% 0.6% -1.1% -1.9% Avera
Slide 16: Delivering Strong Shareholder Returns
Delivering Strong Shareholder Returns CASH GENERATION UNDERPINS CAPITAL RETURNS of £10BN OVER FIVE YEARS GENERATING STRONG SHAREHOLDER RETURNS Progressive Dividend per Share Surplus Capital Returns Total Shareholder Return Reflecting underlying performance Ongoing share buyback Performance (Rebased
Slide 17: Delivering on our ESG Priorities
Delivering on our ESG Priorities OUR PRIORITIES ARE FULLY ALIGNED WITH OUR COMMERCIAL GOALS 64% growth in NGP net 32% reduction in energy 47% reduction in lost time revenues since 2021A consumption since 2017* accidents since 2019** Supporting Supporting Supporting simplified and building scale in h
Slide 18: Clear Purpose, Vision and Behaviours
Clear Purpose, Vision and Behaviours THE SAME VISION, PURPOSE AND BEHAVIOURS WILL SUPPORT 2030 STRATEGY OUR PURPOSE OUR VISION “Forging a path to a healthier “To build a strong challenger future for moments of relaxation business powered by and pleasure” responsibility, focus and choice” OUR BEHAVIO
Slide 19: Setting Out Our 2030 Strategy
Setting Out Our 2030 Strategy 2021-2025 STRATEGY 2030 STRATEGY Driving Building sustainable scale value in in NGP combustibles Differentiated, Simplified, consumer efficient, and centric brand data-led building organisation High- performance culture Capital Markets Day | 26 March 2025 19
Slide 20: Our Operational and Financial Ambitions
Our Operational and Financial Ambitions Sustained value Building a meaningful Leveraging our Significant delivery from our business in NGP with consumer capabilities shareholder returns combustible business scale as an efficient, data-led through dividends organisation and buybacks Low single-digit
Slide 21: Our 2030 Ambitions: The Next Five Years
Our 2030 Ambitions: The Next Five Years WE HAVE CLEAR OPPORTUNITIES TO BUILD ON STRONG FOUNDATIONS 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 nex
Slide 22: Agenda
Agenda • Our 2030 Strategy Murray McGowan – Chief Strategy & Development Officer • Building Differentiated Consumer Brands Paola Pocci – Chief Consumer Officer • Panel Q&As • Break – Tour of Booths • Driving Sustainable Value in Our Markets – USA – Kim Reed, President and CEO, Americas Region – Euro
Slide 23: Our 2030 Strategy
Our 2030 Strategy Murray McGowan Chief Strategy and Development Officer Capital Markets Day | 26 March 2025 23
Slide 24: Leveraging the Strengths of the Current Strategy
Leveraging the Strengths of the Current Strategy STRATEGY DESIGNED USING KEY PRINCIPLES PRINCIPLES OF OUR STRATEGIC REVIEW OUR CHALLENGER • Rigorous approach MINDSET – Consumer-centric Remain focused on clear – Data-led areas where we have a • Playing to our strengths – clear playbook right to win •
Slide 25: A More Efficient, Focused and Connected Imperial
A More Efficient, Focused and Connected Imperial Maintain our highly focused Maintain highly targeted approach to combustible markets approach to NGP, accelerating while managing our broader Driving Building innovation across all categories sustainable scale portfolio with same rigour value in in NG
Slide 26: Industry Revenue Projections
Industry Revenue Projections SUPPORTING LONG-TERM SUSTAINABLE GROWTH AND RETURNS INDUSTRY NET REVENUE FORECAST, £BN CAGR +3.2% £67bn £60bn 7% 4% 9% £49bn 6% 9% 9% 1% 5% 2% 81% 75% 92% 2020 2025 2030 Combustible Vapour Heated Tobacco Modern Oral Source: Imperial Brands internal estimates for Group fo
Slide 27: 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 28: Driving Value from Combustible Portfolio
Driving Value from Combustible Portfolio FOCUS ON PRIORITY COMBUSTIBLE MANAGE BROADER MARKET PORTFOLIO MARKETS TO OPTIMISE VALUE CREATION Other Rest of European Africa World Markets Profit c. 70% c. 15% c. 10% c. 5% contribution* * % of FY24 tobacco operating profit, excluding one-offs, after alloca
Slide 29: Priority Markets are c.70% of Operating Profit
Priority Markets are c.70% of Operating Profit % of IMB FY24 Market Gross Margin/’000 SE Imperial Share3 Combustible OP Market Size¹ Value Outlook² (Relative to Imperial Average) USA £35.1bn 0% to +1% c.11% High c.53% Germany £5.7bn +2% to +3% c.18% High UK £2.1bn -6% to -5% c.38% High Spain c.18% £
Slide 30: 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 31: NGP Industry Revenue Projections
NGP Industry Revenue Projections CONTINUED LONG-TERM SUSTAINABLE GROWTH POTENTIAL £17bn CAGR +16% 4.3 £11bn 2.6 6.2 3.3 £4bn 0.5 0.9 5.3 6.2 2.3 FY20 FY25 FY30 Vapour Heated Tobacco Modern Oral Nicotine NGP penetration 8% 19% 25% Source: Imperial Brands internal estimates for Group footprint. Market
Slide 32: NGP Industry Profit Pool Characteristics
NGP Industry Profit Pool Characteristics MARKET SIZE (NR) & CAGR, SHARE OF TOTAL, INDUSTRY GROSS 2025-2030 (£BN. %) 2030 (%) MARGINS (%) 48.6 Combustibles 50.4 +1% 75% 60% - 65% 9% 45% - 55% 5.3 Vapour 6.2 +3% Heated Tobacco 3.3 6.2 +13% 9% 60% - 70% Modern Oral 2.6 4.3 +11% 7% 65% - 75% 2025 2030 S
Slide 33: Prioritising the Biggest NGP Opportunities
Prioritising the Biggest NGP Opportunities WE CONTINUE TO FOCUS WHERE WE HAVE THE CAPABILITIES TO WIN MARKET ENTRY STRATEGY UNCHANGED Category is established and Imperial has an existing strong route to market US modern European vapour European heated European modern oral nicotine tobacco products o
Slide 34: Five Operational Levers to Drive Performance
Five Operational Levers to Drive Performance EACH MARKET HAS A CLEAR PLAYBOOK OF ‘MUST-WIN BATTLES’ 1 Investing to grow key brands: International and local jewels Combustible brands 2 Winning in value segment to meet downtraders 3 Maximise potential of the fine cut category NGP brands 4 Investing to
Slide 35: Building Differentiated Consumer Brands
Building Differentiated Consumer Brands Paola Pocci Chief Consumer Officer Capital Markets Day | 26 March 2025 35
Slide 36: Combustible Brands: A Track Record of Growth
Combustible Brands: A Track Record of Growth ACHIEVING SHARE OBJECTIVES AND DRIVING VALUE FY21 – FY24 Cumulative priority Average annual net market share gains +48bps revenue growth* +1.8% MARKET SHARE Trend Trend Trend Trend Trend Trend REVENUE NET 0.3% 3.9% 5.2% 7.1% 2.3% 4.0% *Tobacco only, const
Slide 37: NGP: Category Share and Revenue Growth
NGP: Category Share and Revenue Growth BUILDING TARGETED BRANDS AND DRIVING IMPROVING PERFORMANCE FY21 – FY24 Net Revenue Growth 64% Reduction In NGP Losses 76% VAPOUR HEATED TOBACCO ORAL NICOTINE 9.3% 3.6% 8.3% # OF MARKETS 3.1% # OF MARKETS # OF MARKETS >20 8 8 2.6% MARKET SHARE 2.4% 5.8% 2.0% 1.6
Slide 38: Opportunity to Enhance Consumer Capabilities
Opportunity to Enhance Consumer Capabilities CREATING VALUE BY FURTHER BUILDING THE GLOBAL CONSUMER ORGANISATION WHAT WE HAVE DONE… • Created the Global Consumer Organisation (GCO) • Placed the consumer at the centre of the business • Established new brand building and insight capabilities • Opened
Slide 39: Our Challenger Approach to the Consumer
Our Challenger Approach to the Consumer UNLOCKING COMMERCIAL VALUE THROUGH A DISCIPLINED PLAYBOOK Knowing our consumers best with deep insights and intelligence Driving Building sustainable value in scale in NGP Building differentiated brands combustibles Differentiated, Simplified, Innovation throu
Slide 40: Ensuring We Understand Our Consumers Best
Ensuring We Understand Our Consumers Best LEVERAGING BREADTH AND DEPTH OF DATA-LED, INSIGHT TOOLS Demand Spaces Typologies Ethnographic research When and where Defining who we are Studying how consumers consumers use our targeting and sharp use our products & products targeting of consumers identify
Slide 41: Focusing on Our Consumer Types
Focusing on Our Consumer Types TARGETING FOUR DISTINCT CONSUMER TYPOLOGIES WHERE WE CAN LEAD Informed Conservative Progressive Recognition Creative Trust Seeker Optimiser Traditionalist Connoisseur Achiever Seeker Pioneer 15% 12% 14% 15% 15% 14% 15% Combustibles NGP Percentages represent consumer ty
Slide 42: Building Differentiated Brands
Building Differentiated Brands WE ARE CREATING SPECIFIC AND CONSISTENT CONSUMER PROPOSITIONS OUR BRANDS ARE REFINED USING OUR DISCIPLINED FRAMEWORK Specific definition of our target WHO? consumer and prime prospect Clear guidance to define WHAT? what the brand stands for Clear definition of how the
Slide 43: Innovating Through Co-Creation
Innovating Through Co-Creation IMPROVEMENTS FOCUS ON COMBUSTIBLE AND NGP CONSUMER NEEDS CONSUMERS, SCIENCE AND PARTNERS ARE EMBEDDED IN HOW WE INNOVATE Creating with consumers Underpinned by science Leveraging partnerships Capital Markets Day | 26 March 2025 43
Slide 44: Driving Performance in Combustibles and NGP
Driving Performance in Combustibles and NGP WE USE THE SAME CONSUMER TOOLS ACROSS BOTH CATEGORIES Knowing our consumers Building differentiated Innovation through best through deep insights brands consumer co-creation and intelligence Capital Markets Day | 26 March 2025 44
Slide 45: Combustibles: Leveraging Diverse Brands
Combustibles: Leveraging Diverse Brands USING THE STRENGTH OF OUR BRAND PORTFOLIO TO DRIVE VALUE USA GERMANY UK SPAIN AUSTRALIA FY24 price/mix: 11.7% FY24 price/mix: +7.0% FY24 price/mix: +10.1% FY24 price/mix: 9.5% FY24 price/mix: 25.0% PREMIUM VALUE Distinctive, local brand portfolio Cumulative pr
Slide 46: Combustibles: Innovating To Create Value
Combustibles: Innovating To Create Value CONSUMER INSIGHTS DRIVE IMPROVED TASTE AND FORMATS TASTE FORMATS Consumer Insight Taste Segmentation Innovation Recent launches Leveraging consumer preference Odour is a key • Scented varnish strip • Taste is the main driver patterns for strategic product pai
Slide 47: Combustibles: Our Challenger Approach in Action
Combustibles: Our Challenger Approach in Action REFRESHING DAVIDOFF FOR OUR TARGET CONSUMERS Typology: Target the recognition seeker • Ambitious, competitive and status-driven • Socially active, high drive and career focused Drive the brand “Craftmanship that makes you stand out” • High-quality ciga
Slide 48: NGP: We Are Taking the Same Approach
NGP: We Are Taking the Same Approach DIFFERENTIATED BRANDS AND TARGETED INNOVATION Market Focus Our consumer Brands and products Foundational Specific needs targets Prioritising markets with an Four typologies: Differentiated products to established category HEALTH conservative address consumer pres
Slide 49: Vapour: Authentic Flavours and a Trusted Brand
Vapour: Authentic Flavours and a Trusted Brand TARGET CONSUMER: PROGRESSIVE ACHIEVER FY24 KEY METRICS OUR CONSUMERS WANT: • A trusted brand # OF MARKETS • Style over fashion >20 • Total nicotine satisfaction +2 in FY24 SHARE GROWTH WE PROVIDE: • 15 years’ heritage: long- +210 bps established brand •
Slide 50: Vapour: Innovating To Drive Consumer Acceptance
Vapour: Innovating To Drive Consumer Acceptance POSITIVE CONSUMER FEEDBACK FOLLOWING THE LAUNCH OF BLU BAR/ BLU BOX OUR NEXT GENERATION POD SYSTEMS: BLU BAR KIT BLU BAR KIT & BLU BOX KIT OVERALL LIKING • Preferred flavour profile other vapour 21% products higher than nearest competitor • Convenient,
Slide 51: Heated Tobacco: Simplicity and Authenticity
Heated Tobacco: Simplicity and Authenticity TARGET CONSUMER: TRUST SEEKER OUR CONSUMERS WANT: FY24 KEY METRICS • Simple and immediate experience • Authentic tobacco flavour # OF MARKETS • Potentially reduced risk 8 +1 in FY24 SHARE GROWTH WE PROVIDE: • New Pulze 3.0 offers intuitive +110 bps experie
Slide 52: Heated Tobacco: New and Improved Product
Heated Tobacco: New and Improved Product INNOVATING TO MEET THE NEEDS OF OUR TARGET CONSUMERS PULZE 3.0 DELIVERS DEEP SATISFACTION THROUGH RICHER FLAVOUR AND OVERALL TASTE INTENSITY ENHANCED NICOTINE DELIVERY +20% First two puffs, Pulze • Smallest 25+ session all-in-one device 3.0 vs. Pulze 2.0 • Si
Slide 53: Modern Oral: Brands Meeting Distinctive Needs
Modern Oral: Brands Meeting Distinctive Needs TWO DIFFERENT TARGET CONSUMERS ACROSS OND BRANDS OUR CONSUMERS WANT: FY24 KEY METRICS SKRUF ZONE # OF MARKETS Conservative connoisseurs • Respected brands Recognition seekers • Nicotine satisfaction 8 +1 in FY24 • Better for the consumer – • Great tastin
Slide 54: NGP: Building Scale Towards Profitability
NGP: Building Scale Towards Profitability DELIVERING NET REVENUE GROWTH AND IMPROVING GROSS MARGINS FY24: NGP as a % of NR BY MARKET KEY METRICS Europe FY24 8% FY24 NET REVENUE Europe FY20 3% Greece GROWTH 43% +26.4% Italy 36% Portugal 34% Estonia 31% Austria 27% FY23: 26.4% Norway 27% Finland 21% S
Slide 55: 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 FY24 IMB GROSS MARGINS VAPOUR 45% - 55% FY24 VAPOUR GROSS MARGINS* c.55% c.40% HEATED TOBACCO HEATED 60% - 70% GROSS MARGINS* Currently building scale to enhance
Slide 56: Opportunity to Enhance Consumer Capabilities
Opportunity to Enhance Consumer Capabilities WE WILL FURTHER ENHANCE OUR INSIGHTS, BRAND BUILDING AND INNOVATION WHAT WE HAVE DONE SO FAR.. WHAT WE WILL DO... • Created the Global Consumer Sharpen insights on our Organisation (GCO) consumers • Placed the consumer at the centre of the business Build
Slide 57: Q&A
Q&A Capital Markets Day | 26 March 2025 57
Slide 58: Imperial Brands Capital Markets Day
Draft v8 – 10 March 2025 Imperial Brands Capital Markets Day 26 March 2025
Slide 59: Driving Sustainable Value In Our Markets
Driving Sustainable Value In Our Markets Kim Reed President & CEO, Americas Region Capital Markets Day | 26 March 2025 59
Slide 60: Five Operational Levers to Drive Performance
Five Operational Levers to Drive Performance EACH MARKET HAS A CLEAR PLAYBOOK OF ‘MUST-WIN BATTLES’ 1 Investing to grow key brands: International and local jewels We have >25 Combustible growth initiatives brands 2 Winning in value segment to meet downtraders across five 3 Maximise potential of the
Slide 61: Driving Sustainable Value In The US
Driving Sustainable Value In The US AMERICAS REGION Net revenue Adjusted operating profit £2.8bn £1.3bn c. 35% of Group net revenue Source: FY24 Results Capital Markets Day | 26 March 2025 61
Slide 62: US: Attractive Market and Well-Positioned Brands
US: Attractive Market and Well-Positioned Brands LEVERAGING OUR PORTFOLIO TO DRIVE MARKET SHARE AND GROWTH ATTRACTIVE MARKET FMC MMC NGP • Largest global market, excluding Traditional Premium China Strong Portfolio • Affordability supports pricing to Premium offset volume declines Value • Relative m
Slide 63: US: Strong Operational and Financial Delivery
US: Strong Operational and Financial Delivery BALANCING MARKET SHARE AND PRICING TO SUPPORT DELIVERY CIGARETTE MARKET SHARE (%) TOGETHER WITH POSITIVE CONSISTENT FINANCIAL PRICE MIX (%) DELIVERY 10.9% CAGR (FY20-24) 10.7% 11.7% 3.4% 9.3% Tobacco & NGP net 10.1% revenue growth 180bps 6.3% 9.1% Cumula
Slide 64: US: Understanding Winston Consumers
US: Understanding Winston Consumers INSIGHTS INFORM THE KEY DRIVERS THAT RESONATE WITH WINSTON CONSUMERS 1 Investing to grow key brands CONSUMER INSIGHT QUALITY AND TASTE BRAND FOR SOMEONE PREMIUM QUALITY AT PERCEPTION LIKE ME AFFORDABLE COST Non Trialists Usual Brand Users 48 47 81 Non Trialists Us
Slide 65: US: Winston Investment Informed by Insights
US: Winston Investment Informed by Insights ONGOING RESEARCH BASED ON THOUSANDS OF CONSUMER ENGAGEMENTS CONSUMER INSIGHTS INFORMING INVESTMENT WINSTON SHARE OF PREMIUM Highest Quality, A brand for Premium Quality, VALUE SEGMENT Great Taste someone like me Affordable Cost FY21 FY22 FY23 FY24 Growing
Slide 66: US: Investing in Mass Market Cigars - Backwoods
US: Investing in Mass Market Cigars - Backwoods LEVERAGING AN ICONIC BRAND THROUGH CONSUMER INSIGHTS 1 Investing to grow key brands MARKET SHARE Backwoods share of natural Innovation with flavours Activation events leaf segment (%) Return to share growth 23.0% following post-Covid 20.9% pressures on
Slide 67: US NGP: Modern Oral and Vapour Brands
US NGP: Modern Oral and Vapour Brands ENCOURAGING EARLY PROGRESS WITH ZONE ROLL-OUT 4 Investing to build scale in NGP US MODERN ORAL US VAPOUR • Capturing growth in fast-growing segment ZONE LAUNCHED 2024 • Strong blu brand recognition • Differentiated offer informed by consumer insight >70k stores
Slide 68: US: Enhancing Sales Coverage & Effectiveness
US: Enhancing Sales Coverage & Effectiveness 5 Sales excellence FUTURE GROWTH OPPORTUNITIES 950 1. INCREASED SALESFORCE 665 43% • Additional investment in targeted 196k store locations FY21 FY24 salesforce expansion 2. FOCUSED DEPLOYMENT BETTER COVERAGE • Data-led store prioritisation • Further data
Slide 69: Driving Sustainable Value In Europe
Driving Sustainable Value In Europe Aleš Struminsky President, Europe Region Capital Markets Day | 26 March 2025 69
Slide 70: Europe Region: Attractive Value Opportunities
Europe Region: Attractive Value Opportunities FOCUS ON PRIORITY MARKETS: GERMANY, SPAIN AND UK EUROPE REGION PRIORITY MARKETS >25 markets Net revenue £3.4bn c. 60% of Regional net revenue Adjusted Operating Profit £1.5bn c. 25% of Group net revenue Source: FY24 Results Capital Markets Day | 26 March
Slide 71: Germany: Attractive Market with Strong Presence
Germany: Attractive Market with Strong Presence IMPROVING PERFORMANCE WITH STRONG VALUE CREATION OPPORTUNITIES ATTRACTIVE MARKET ENVIRONMENT FMC FCT NGP • Large profit pool with predictable excise Above and regulatory regime Premium • High affordability and stable consumer base Strong Portfolio Prem
Slide 72: Germany: Sales Force Investment Driving Share
Germany: Sales Force Investment Driving Share LEVERAGING THE POWER OF OUR SALES EXCELLENCE 5 Sales excellence Increased Sales Coverage MARKET SHARE +70 60% 80% 10k FY21 STABILISATION FY22 FY23 FY24 new sales reps additional stores +2bps Before After • Recruitment in FY23; FY24 optimising channel cov
Slide 73: Germany: Key Operational Levers to Drive Growth
Germany: Key Operational Levers to Drive Growth FURTHER INVESTMENT OPPORTUNITIES TO IMPROVE PERFORMANCE 1 Investing to grow key brands • History of underinvestment reversed through targeted investment and marketing mix optimisation • Clear brand positioning defined to meet different consumer needs •
Slide 74: UK: Focus on Value Creation and NGP Growth
UK: Focus on Value Creation and NGP Growth LEVERAGING OUR PORTFOLIO TO OPTIMISE VALUE MARKET CHARACTERISTICS FMC FCT NGP • More challenging combustible volume Premium Premium environment • High excise environment impacting Mid Mid affordability Strong Portfolio • Limited direct consumer communicatio
Slide 75: UK: Optimising Value in Combustibles
UK: Optimising Value in Combustibles MEETING CONSUMER NEEDS; BALANCING SHARE WITH VALUE CREATION CUMULATIVE SHARE UP SINCE 2020 1 Investing to grow key brands FY21 FY22 FY23 FY24 Cum • Leveraging our international and local brands +85bps • Clear portfolio strategy to meet consumer needs across price
Slide 76: UK: Delivering Share Growth in Vapour
UK: Delivering Share Growth in Vapour INNOVATION MEETING EVOLVING CONSUMER NEEDS AND BUILDING SCALE DELIVERING VOLUME SHARE GAINS IN NGP1 4 Building scale in NGP • NGP growth opportunities in a challenging combustibles market Blu Bar Kit & • New product launches supporting revenue and share Pod Laun
Slide 77: Spain: Attractive Dynamics; Strong Local Brands
Spain: Attractive Dynamics; Strong Local Brands MARKET CHARACTERISTICS AND BRAND PORTFOLIO SUPPORTING GROWTH ATTRACTIVE MARKET ENVIRONMENT FMC FCT NGP • Stable volume outlook and high smoking Premium prevalence (24%) • Price points remain low: good levels of Strong Local Brands affordability Mid • >
Slide 78: Spain: Delivering Growth in Share and Value
Spain: Delivering Growth in Share and Value LEVERAGING OUR LOCAL JEWEL BRANDS AND OUR NGP PORTFOLIO 1 Investing to grow key brands 4 Building scale in NGP • Local jewel brands performing well MARKET SHARE GAIN • Focus on vapour with blu driven by deep consumer insights +10bps +10bps • Rapid launches
Slide 79: Driving Sustainable Value In AAACE
Driving Sustainable Value In AAACE Priyali Kamath President, AAACE Region Capital Markets Day | 26 March 2025 79
Slide 80: AAACE Region: Attractive Growth Opportunities
AAACE Region: Attractive Growth Opportunities PRIORITY MARKET AUSTRALIA AND BROADER MARKET PORTFOLIO AAACE Region PRIORITY MARKETS >50 markets c. 12% of Regional net revenue Net revenue c. 3% of Group net revenue £2.0bn BROADER MARKET OPPORTUNITIES Adjusted Operating Profit • Focused opportunities i
Slide 81: Australia: Value Creation in a Shrinking Market
Australia: Value Creation in a Shrinking Market SUCCESSFUL PROFIT AND CASH DELIVERY IN CHALLENGING MARKET CHALLENGING MARKET ENVIRONMENT FMC FCT NGP • Highly regulated and taxed Premium Premium • Low affordability driving accelerated volume declines and downtrading Mid Mid • High levels of tobacco c
Slide 82: Australia: Balancing Share and Value Creation
Australia: Balancing Share and Value Creation MEETING CONSUMER NEEDS; BALANCING SHARE WITH VALUE CREATION MARKET SHARE 1 Investing to grow key brands FY21 FY22 FY23 FY24 • Portfolio strategy meeting consumer needs across price points +20bps +10bps +5bps • Delivered a turnaround in JPS share • Succes
Slide 83: Driving Value from Broader Market Portfolio
Driving Value from Broader Market Portfolio BRINGING THE SAME RIGOUR AND FOCUS AS FOR OUR PRIORITY MARKETS CONSUMER BRANDS CHALLENGER FOCUS Consumer-centric approach Jewel Brands Potential to Become Future • National provenance Growth Engines • Renewed consumer focus • Local heritage • Expertise in
Slide 84: Driving Growth in Africa Cluster
Driving Growth in Africa Cluster FUTURE GROWTH ENGINE BUILDING ON A STRONG TRACK RECORD GROWTH TRACK RECORD ATTRACTIVE MARKETS IMB MARKET POSITIONS • Delivering growth through pricing Strong positions* in several sizeable +4.6% Net revenue CAGR FY20-FY24 and modest volume declines markets • Strong b
Slide 85: CEE: Growing in Combustibles and NGP
CEE: Growing in Combustibles and NGP STRONG TRACK RECORD OF GROWTH CEE CLUSTER OPPORTUNITIES IN NGP • Successful NGP market launches +4.3% Net revenue CAGR FY20-FY24 • Focus on heated tobacco in three CEE markets +7.6% Adjusted OP CAGR FY20 – FY24 • Vape product launches: blu bar 1,000 puff and blu
Slide 86: Strategic Enablers: A High-Performance Culture
Strategic Enablers A High-Performance Culture Alison Clarke Chief People and Culture Officer Capital Markets Day | 26 March 2025 86
Slide 87: Driving a High-Performance Culture
Driving a High-Performance Culture WE ARE FURTHER EVOLVING OUR CULTURE TO FULFIL CHALLENGER ROLE OUR PURPOSE “Forging a path to a healthier Driving future for moments of relaxation Building sustainable scale and pleasure” value in in NGP combustibles Differentiated, Simplified, consumer- efficient,
Slide 88: Five Key Barriers Blocking Commercial Success
Five Key Barriers Blocking Commercial Success OUR BEHAVIOURS WERE DESIGNED BY OUR PEOPLE Limited consumer insights and intelligence Start with the Consumer Siloed operations Collaborate with Purpose Blurred lines of responsibility Take Accountability with Confidence Not reflecting diverse consumers
Slide 89: Our Journey Towards Higher Performance
Our Journey Towards Higher Performance STRUCTURED APPROACH TO OPERATIONALISING CULTURE Set up Global • Bonus structures linked • Introduction of regular • Enterprise-wide • Incentive structures Consumer global performance business reviews “Connections” more aligned to group Organisation programme to
Slide 90: Our Performance Culture is Driven by Data
Our Performance Culture is Driven by Data WE HAVE MAINTAINED CONSISTENTLY HIGH EMPLOYEE ENGAGEMENT PERFORMANCE-BASED CULTURE FY24 EMPLOYEE ENGAGEMENT SURVEY Global Engagement Score I have a clear understanding of what is expected of me 85% Global benchmark: 73% 1 ppt above global benchmark The peopl
Slide 91: Where Next For Our Performance-Based Culture?
Where Next For Our Performance-Based Culture? BUILDING TOWARDS A HIGH-PERFORMANCE CULTURE CONSUMER EXCELLENCE SALES EXCELLENCE MANUFACTURING EXCELLENCE • Knowing our own consumers • Investment in skills and capabilities • Doubling-down on efficiency, • Integrating teams into a high- quality and heal
Slide 92: Integrating People, Processes, Technology and Data
Integrating People, Processes, Technology and Data THE RIGHT CULTURE AND THE RIGHT TECHNOLOGY ARE KEY TO SUCCESS People Processes 2030 STRATEGY Technology Data Capital Markets Day | 26 March 2025 92
Slide 93: Strategic Enablers: Simplified, Efficient, Data-Led Organisation
Strategic Enablers Simplified, Efficient, Data-Led Organisation Lukas Paravicini Chief Financial Officer Capital Markets Day | 26 March 2025 93
Slide 94: Our Journey and the Opportunity Ahead
Our Journey and the Opportunity Ahead BECOMING A SIMPLIFIED, EFFICIENT AND DATA-LED ORGANISATION OUR PAST THE OPPORTUNITY AHEAD • Growth through many acquisitions over • Further enhance our consumer intimacy multiple years with limited integration • Resources prioritised on deeply • Multiple legacy
Slide 95: We Have Already Made Good Progress
We Have Already Made Good Progress FOUNDATIONS IN PLACE FOR NEXT PHASE OF SELF-HELP FY21 FY22 FY23 FY24 FY25 Set out plan at 2021 Set up Global Set out enterprise Plan go-live in first Successful Capital Markets Day Business Services technology roadmap priority market implementation in in Poland fir
Slide 96: Investing in Further Self-Help Opportunities and Growth
Investing in Further Self-Help Opportunities and Growth NEW WAYS OF WORKING TO DELIVER LONGER-TERM SUSTAINABLE GROWTH BUILDING AND HARMONISING OUR CAPABILITIES 2030 OBJECTIVE Leverage the potential of every • Drive value from People employee investments in people, technology and data Create an agile
Slide 97: 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 98: Unlocking Value for 2030 Strategy and Beyond
Unlocking Value for 2030 Strategy and Beyond DELIVERING SAVINGS TO UNDERPIN SUSTAINABLE PROFIT AND CASH GROWTH Investment Focus Annualised savings Underpin c. £320m by end 2030 Operational levers in long-term to underpin combustibles sustainability of investment initiatives Growth initiatives in NGP
Slide 99: Unlocking Our Full Value Potential
Unlocking Our Full Value Potential Capital Markets Day | 26 March 2025 99
Slide 100: A Consistent Formula to Unlock Value
A Consistent Formula to Unlock Value A clear Driving Delivering strategy to sustainable growing win with growth in shareholder consumers cash flows returns Capital Markets Day | 26 March 2025 100
Slide 101: 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 102: On Track to Deliver our FY25 Guidance
On Track to Deliver our FY25 Guidance OUTLOOK FOR FY25* Revenue • Low-single-digit net revenue growth; double-digit NGP revenue growth • Adjusted operating profit (AOP) growth close to middle of mid-single-digit range Profit • Profit drivers: operational gearing, improving NGP margins, self-help opp
Slide 103: Continued Strong Cash Outlook
Continued Strong Cash Outlook RESILIENT CASH DELIVERY STRONG CASH FUNDAMENTALS £9BN FREE CASH FLOW SINCE START OF STRATEGY £2.6bn • Business remains highly cash generative £2.4bn £2.4bn • Low capital intensity £1.5bn • Growing adjusted operating cash flow • Group cash flows optimised through pooling
Slide 104: Logista Delivers Valuable Cash Contribution
Logista Delivers Valuable Cash Contribution FURTHER VALUE CREATION OPPORTUNITIES AT LOGISTA LOGISTA OVERVIEW LOGISTA VALUE CREATION • Listed in Madrid; Imperial owns 50.01% FY24 daily FY24 operating • Distributes tobacco, other convenience products, £0.3bn profit contribution £1.8bn average working
Slide 105: Capital Allocation Remains a Key Value Driver
Capital Allocation Remains a Key Value Driver DISCIPLINED USE OF CASH WITHIN A CLEAR FRAMEWORK OUR CAPITAL ALLOCATION PRIORITIES • Modest capex needs (£300-350m pa) 1 Investing in the strategy to drive sustainable growth • • Restructuring for sustainable growth Bolt-on M&A • Maintain investment grad
Slide 106: Driving Value Through Our 2030 Strategy
Driving Value Through Our 2030 Strategy Stefan Bomhard Chief Executive Officer Capital Markets Day | 26 March 2025 106
Slide 107: Our Purpose, Vision and Strategy
Our Purpose, Vision and Strategy CREATING A COMMON HIGH-PERFORMANCE CULTURE FOR IMPERIAL BRANDS OUR PURPOSE “Forging a path to a healthier future for Driving Building sustainable scale moments of relaxation and pleasure” value in in NGP combustibles OUR VISION Differentiated, Simplified, “To build a
Slide 108: Our 2030 Ambitions: The Next Five Years
Our 2030 Ambitions: The Next Five Years WE HAVE CLEAR OPPORTUNITIES TO BUILD ON STRONG FOUNDATIONS 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 nex
Slide 109: A Clear Investment Case
A Clear 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 annually reflecting business performance • Low-single-digit t
Slide 110: Q&A
Q&A Capital Markets Day | 26 March 2025 110
Slide 111: Imperial Brands Capital Markets Day
Draft v8 – 10 March 2025 Imperial Brands Capital Markets Day 26 March 2025