Imperial Brands Plc · LSE:IMB

Imperial Brands — Altadis — FY2007 Earnings Presentation

13 slides from Imperial Brands's earnings presentation, Apr 24, 2008

  1. Slide 1: Summary Financial Results Year Ended 31 December 2007

    Summary Financial Results Year Ended 31 December 2007 24th April, 2008

  2. Slide 2: Financial Year 2007 key figures

    Financial Year 2007 key figures €m FY06 FY07 Var. 07-06 Economic Sales 3,970 4,058 +2% Organic (1) 4,154 +5% EBITDA 1,148 1,208 +5% Organic (1) 1,248 +9% EPS (€cent) (2) 175 160 -8% Operating Free Cash Flow (3) 951 758 -20% Headcount 27,083 (1) Organic: At constant dollar and consolidation scope (2)

  3. Slide 3: Financial Year 2007 Highlights: organic growth in all three Divisions

    Financial Year 2007 Highlights organic growth in all three Divisions „ Cigarettes: significant growth Î Volumes: +2%; Sales: +3% and EBITDA: +19% Î Spain, Morocco and Middle East: strong positive performances „ Cigars: Confirmation of recovery in the US Î At constant dollar, sales: +2% and EBITDA: +

  4. Slide 4: Cigarette Division key figures for FY07

    Cigarette Division key figures for FY07 €m FY06 FY07 Var. 07-06 Volume (billion units) 118.6(1) 120.7(1) +2% Economic sales 1,693 1,746 +3%(2) EBITDA 524 621 +19%(2) EBITDA margin 31.0% 35.6% +460 bps (1) Including 6.2 billion and 7.9 billion cigarettes licensed to third parties for 2006 and 2007 re

  5. Slide 5: Cigarette Division key events for FY07

    Cigarette Division key events for FY07 „ Spain Î after tax normalisation, market stabilised; blond market share resumed growth Î price increase triggered a significant profit improvement „ France Î new smoking restrictions in force since February 2007 Î price increase passed in August 2007, first on

  6. Slide 6: Blond Cigarette Markets: excellent performances in Spain, Morocco & ME

    Blond Cigarette Markets excellent performances in Spain, Morocco & ME Value (€m) FY06 FY07 1,321 +4% „ Spain: price increases, market share 1,264 gain and improved mix triggered strong Other 295 results 298 countries -1% 163 „ France: solid sales growth Middle East 137 +19% 184 165 -10% „ Morocco: k

  7. Slide 7: Cigar Division key figures for FY07: Recovery confirmed

    Cigar Division key figures for FY07 Recovery confirmed €m FY06 FY07 Var. 07-06 Volume (million cigars) 3,281 3,165 -4% Economic sales 888 842 -5% Organic (1) 903 +2% EBITDA 281 262 -7% Organic (1) 284 +1% EBITDA margin 31.7% 31.0% -70 bps (1) Organic: At constant dollar and consolidation scope 7

  8. Slide 8: Cigar Division key events for FY07

    Cigar Division key events for FY07 „ Return to organic growth; still strongly affected by unfavourable US$ „ US Î Product launches and additional A & P expenditure to address Q1 sales declines showed positive results later in the year in spite of challenging market trends „ Cuban cigars Î dollar sal

  9. Slide 9: Cigar Division organic growth led by Premium and Natural cigars

    Cigar Division organic growth led by Premium and Natural cigars Value (€m) & Growth Volumes (m units) & Growth FY06 FY07 FY06 FY07 888 Ex USD impact 842 -5% +2% 96 1,574 1,390 90 -6% +1% -12% 188 152 -19% -12% 1,530 1,590 372 371 +4% 0% +6% 232 229 177 185 +5% -1% +6% Premium & Habanos (50%) Natural

  10. Slide 10: Logistics Division key figures for FY07

    Logistics Division key figures for FY07 €m FY06 FY07 Var. 07-06 IFRS Revenue 10,481 10,638 +1% Economic sales 1,191 1,258 +6% EBITDA 310 317 +2% EBITDA margin 26.0% 25.2% -80 bps Note: There is no material currency and/or perimeter impact 10

  11. Slide 11: Logistics Division key events for FY07

    Logistics Division key events for FY07 „ Cigarettes volumes varied in our key markets Î Spain -1%; France -1%; Morocco +5%; Italy -1% „ Spain tobacco Î market now stable after difficult 2006 Î higher retail prices „ General logistics Î economic sales up 6% Î strong performance of transportation serv

  12. Slide 12: Logistics Division strong tobacco & general performances

    Logistics Division strong tobacco & general performances Number of points of sale serviced: more than 510,000 Economic sales (in € million) FY06 FY07 Var.07-06 Spain and Portugal 157 176 +12% France 166 174 +5% Italy 193 193 0% Morocco 54 55 +1% Tobacco 570 598 +5% Spain and Portugal 403 437 +8% Fra

  13. Slide 13: Conclusion: growth and efficiencies

    Conclusion growth and efficiencies „ Growth is back as expected Îorganic EBITDA up 9%; growth in all three Divisions Îvery strong cigarettes, good logistics while challenging market conditions in cigars Îoverall good operational performance enhancing benefits of Altadis business model „ Focus on top

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