Imperial Brands PLC · LSE:IMB
Imperial Brands — Imperial Tobacco Group — Morgan Stanley Consumer & Retail Conference 2009
17 slides from Imperial Brands's conference presentation, Nov 19, 2009
Slide 1: Morgan Stanley Consumer & Retail Conference 2009
Morgan Stanley Consumer & Retail Conference 2009 New York 19 November 2009
Slide 2: Gareth Davis, Chief Executive
Gareth Davis Chief Executive 2
Slide 3: Disclaimer
Disclaimer Certain statements in this presentation constitute forward-looking statements. Any statement in this presentation that is not a statement of historical fact including, without limitation, those regarding the Company’s future expectations, operations, financial performance, financial condi
Slide 4: Significant Value Creation
Significant Value Creation our 13 year track record Profit from operations up 18% 180 Earnings per share up 16% adjusted EPS and DPS (p per share) 160 Dividends per share up 14% 140 Generated £15bn of profits 120 Converted 90%+ into cash 100 80 60 40 20 0 97 98 99 00 01 02 03 04 05 06 07 0
Slide 5: Total Shareholder Return
Total Shareholder Return delivering shareholder value £ 1400 1200 £1080 1000 800 600 400 200 £202 0 97 98 99 00 01 02 03 04 05 06 07 08 09 Imperial Tobacco FTSE All-Share Source: Bloomberg 5
Slide 6: Total Tobacco
Total Tobacco balanced comprehensive portfolio 6
Slide 7: Geographic Balance
Geographic Balance enhancing our position Mature Emerging EU E Europe Multi Top line product growth strength USA AME Profit focus Invest Australasia Asia 7
Slide 8: Highly Cash Generative
Highly Cash Generative effective cash allocation 8
Slide 9: FY09 Cigarette Highlights
FY09 Cigarette Highlights key brand performances Davidoff up 12% Gauloises Blondes up 1% * West down 8% JPS up 11% Maxim up 10% Fine up 21% Note: *Full 12 months comparative for FY08; adjusted for timing of shipments 9
Slide 10: Sales Orientation
Sales Orientation excellence in execution Successful trade marketing - available; impactful; appealing Right product, right place, right time Extensive trade research and planning Effective and efficient market coverage Sales excellence maximises trade potential Influence consumer decisi
Slide 11: Enhanced Sales Focus
Enhanced Sales Focus brand rejuvenation and investment This space appears blank because we have removed the images that appear in the presentation. This is because we currently do not feature tobacco product brand imagery on our website. 11
Slide 12: FY09 Results Summary
FY09 Results Summary strong performance Cigarette volumes up 10% to 322bn Profit from operations up 32% to £2,933m - H2 organic profit growth of 7% £2bn reduction in our debt position * EPS up 18% to 161.8p DPS up 16% to 73.0p ** Note: Results are adjusted and presented on our usual basis;
Slide 13: FY09 Integration
FY09 Integration a year of achievement Excellent progress on integration - specific European projects - alignment of processes and systems €190m of cumulative synergies in FY09 On track for €300m in FY10 FY12 cost synergies of €400m Net revenue synergies of €60m in FY11 13
Slide 14: H209 Financial Performance
H209 Financial Performance adjusted profit from operations % H209 Incremental Organic H208(2) Change £m Actual(1) FX Constant synergies profit organic UK 325 (4) 329 1 328 293 +12 Germany 220 20 200 1 199 185 +8 Spain 149 14 135 13 122 110 +11 Rest of EU 294 25 269 24 245 279 -12 Americas 147 30 117
Slide 15: Cash & Financing
Cash & Financing strong cash generation in 2009 Cash conversion 128% Working capital inflow c. £1bn £2bn* reduction in our debt position No refinancing requirements until July 2012 - FY09 bond issues c.£4bn - committed facilities c.£15bn Note: *Excluding the impact of foreign exchange 15
Slide 16: Key Growth Drivers
Key Growth Drivers building blocks of our business Long-term sustainable value Sales growth Cost optimisation Cash utilisation Portfolio & Ongoing cost High margins geographic management Working capital opportunities Altadis synergies discipline 16
Slide 17: Morgan Stanley Consumer & Retail Conference 2009
Morgan Stanley Consumer & Retail Conference 2009 New York 19 November 2009
Imperial Tobacco Group — Morgan Stanley Consumer & Retail Conference 2009 on 6ix