Imperial Brands PLC · LSE:IMB
Imperial Brands — Imperial Tobacco Group — Investor Presentation (March 2009)
19 slides from Imperial Brands's investor presentation, Mar 25, 2009
Slide 1: Trading & Regulatory Update
Trading & Regulatory Update Imperial Tobacco Group PLC 25th March 2009
Slide 2: Gareth Davis, Chief Executive
Gareth Davis Chief Executive
Slide 3: Alison Cooper, Chief Operating Officer
Alison Cooper Chief Operating Officer
Slide 4: Regulatory framework
Regulatory framework Tobacco Ingredients Packaging Advertising Consumer farming TNCO Waste Marketing freedoms Alternative Testing Energy conservation Pack size Adult choice crops Hoffman Analytes Carbon trading Point of Sale SIPPs Pesticides PREPS Excise & Tariffs Pricing Litter Sustainability R&D S
Slide 5: USA SCHIP Legislation
USA SCHIP Legislation Significant increase in federal tobacco tax from 1 April 09 state taxes also rising to meet budget deficits Impact on fine cut tobacco, papers and tubes negligible Decline in cigar market; trade stocking in large cigar expected Strength in discount cigarettes with USA
Slide 6: EU Tobacco Excise Tax Directive
EU Tobacco Excise Tax Directive Formal European Commission Report in July 2008 Proposals seek: overall tax simplification increase fine cut tobacco tax Must be unanimously agreed by all 27 Member States Potential difficulty in meeting original 2010 deadline 6
Slide 7: WHO FCTC
WHO FCTC 164 Parties to the Convention Non-binding guidelines and legally binding protocols No protocols agreed and only four guidelines adopted environmental tobacco smoke and SiPPs packaging and labelling advertising, promotion and sponsorship restricting the role of the tobacco indu
Slide 8: Product Display: UK Consultation
Product Display UK Consultation No plain packaging or vending/10s bans Product display ban being developed House of Lords discussions ongoing House of Commons debate expected late April 8
Slide 9: Product Display: Republic of Ireland
Product Display Republic of Ireland Stricter rules on sale of tobacco products from July 09 Tobacco products will not have to be under the counter Retailers unable to openly display pictorial product list Pictorial product list can be provided upon request Consumers can ask to see one pack
Slide 10: Product Display: Our View
Product Display Our View Advocates of bans claim they will stop people smoking Data from Canada and Iceland shows no impact Display bans are anti-competitive and fuel illicit trade Considerable cost and work burden on retailers 10
Slide 11: Product Display: New Zealand
Product Display New Zealand “…there is no international evidence that it actually works and it’s hugely expensive to do it.” Prime Minister John Key 11
Slide 12: Smoking in Public Places: European Union
Smoking in Public Places European Union Legislation is disproportionate and unnecessary EU Commission views conflict with Member States Some provision for smokers in many Member States Prefer solutions that retain freedom and choice 12
Slide 13: Smoking in Public Places: Germany
Smoking in Public Places Germany Mix of regulations across all 16 federal states All permit smoking in separate rooms, except Bavaria July 2008 court ruling overturned two state bans All states amending local legislation by end of 2009 13
Slide 14: Smoking in Public Places: International
Smoking in Public Places International No international consensus towards outright bans Taiwan: segregated smoking areas allowed Morocco: larger cafes and restaurants can permit smoking India: some restrictions in hotels and restaurants Impact on cigarette consumption diminishes over time
Slide 15: Pictorial Health Warnings
Pictorial Health Warnings Introduced in UK and Latvia in October 2008 Bulgaria, France, Ireland considering pictorials Spain, Greece, Hungary, Slovenia have no plans Makes no contribution to awareness of health risks Stigmatises smokers and denormalises smoking No evidence of pictorials
Slide 16: Lower Ignition Propensity Products
Lower Ignition Propensity Products No such thing as a “fire safe” cigarette Required in Canada and 23 states in the USA To be introduced in Australia in March 2010 EU is currently developing similar legislation Commonwealth Brands experience in the USA 16
Slide 17: Product Liability Litigation
Product Liability Litigation No action successful or settled in favour of any claimant in any tobacco-related litigation Successfully defended claims in many countries Continue to vigorously defend all claims Ireland – 11 claims Spain – 1 claim USA – 3 individual claims Australia – 1 c
Slide 18: Summary
Summary Litigation landscape continues to improve Regulatory environment remains challenging Legitimate stakeholder entitled to express views Oppose unnecessary and disproportionate regulation 18
Slide 19: Trading & Regulatory Update
Trading & Regulatory Update Imperial Tobacco Group PLC 25th March 2009
Imperial Tobacco Group — Investor Presentation (March 2009) on 6ix