Imperial Brands Plc · LSE:IMB
Imperial Brands — Shareholder Meeting (February 2017)
14 slides from Imperial Brands's shareholder meeting presentation, Feb 1, 2017
Slide 1: Annual General Meeting 2017
ANNUAL GENERAL MEETING 2017 Imperial Brands PLC 1 February 2017
Slide 2: Mark Williamson, Chairman
Mark Williamson Chairman Me iMPERIAL A BRANDS
Slide 3: Delivering on our priorities in FY16
DELIVERING ON OUR PRIORITIES IN FY16 Track record of consistent delivery Net revenue Operating profit Operating margin EPS Dividend +10% +10% +60bps +12% +10% Strengthen Develop Drive Cost Embed Capital Portfolio Footprint Optimisation Discipline • Quality of revenue improved • Realising opportuniti
Slide 4: Alison Cooper, Chief Executive
ALISON COOPER Chief Executive
Slide 5: Strong revenue results
STRONG REVENUE RESULTS Focus on quality growth • Tobacco net revenue up 10% to £7.2 billion • £682 million from acquired US brands • Proportion from Growth/Specialist Brands up to 61% • 46% from Growth Brands • 15% from Specialist Brands • Continued focus on growing quality of revenue 5|
Slide 6: Strengthen portfolio: migrations
STRENGTHEN PORTFOLIO: MIGRATIONS More simplification and focus, more quality Growth & Specialist Brands % of net revenue Example: Russia - Balkan Star to P&S 51% 57% 60% 75% 249 No. of brands 200 184 • 49 migrations with c95% retention 20% 125 26% Future investment focus 50% • Investing in more migr
Slide 7: Strengthen portfolio: more investment in new consumer experiences
STRENGTHEN PORTFOLIO More investment in new consumer experiences Strong Future investment focus Brand Equity • More brand equity building • Leveraging blu Plus+ across key markets Footprint Priorities • Trialling new consumer engagement activities: UK and USA Include icons • On-line blu Nation consu
Slide 8: Developing footprint: Growth Markets
DEVELOPING FOOTPRINT: GROWTH MARKETS Revenue and profit momentum Net Revenue Operating Profit • Net revenue up 8.0% (ex. Iraq and Syria) • Profit up 14.2% (ex. Iraq/Syria and transaction FX) +4.3% +2.2% • Growth Brands benefiting from successful £1,568m £443m migrations • Gaining share in Saudi, Ita
Slide 9: Developing footprint: USA market
DEVELOPING FOOTPRINT: USA MARKET Strong results from ITG Brands Net Revenue Operating Profit • ITG Brands performing strongly; in line with our expectations • Retail merchandising programme delivering: +92.9% +102.4% • Shelf space and improved visibility £1,477m £823m • Interior/exterior advertising
Slide 10: Developing footprint: Returns Markets
DEVELOPING FOOTPRINT: RETURNS MARKETS Increased contribution from Growth Brands Net Revenue Operating Profit • Improved quality: increased Growth Brand revenue • Returns North • Strong performance in Australia, Germany -2.7% -4.3% • Investing in UK sub economy segment • Ukraine deprioritised £4,122m
Slide 11: Cost and cash
COST AND CASH Key drivers of growth strategy • On track to deliver £300 million savings a year by 2018 • £240 million delivered so far, including £65 million in 2016 • Cash conversion strong at 95% • Adjusted net debt reduced by £1 billion • £2.1 billion reduction over two years • Eighth consecutive
Slide 12: Corporate responsibility
CORPORATE RESPONSIBILITY Integral to long-term sustainability Employees supporting CR agenda More than 55,000 hours volunteered 76% score in Dow Jones Sustainability Index 12 |
Slide 13: The next decade of growth
THE NEXT DECADE OF GROWTH Growing shareholder returns • Generating sustainable quality growth over next 10 years • Building on foundations of current strategy • New phase of investment starting in FY17 • £300m invested in brands • Supported by more cost optimisation • £300m savings pa by 2020 13 |
Slide 14: Our priorities for FY17
OUR PRIORITIES FOR FY17 On track to deliver Deliver at least 10% increase in dividend Strengthen Develop Drive Cost Embed Capital Portfolio Footprint Optimisation Discipline • More portfolio simplification • More prioritisation • More operating efficiencies • More capital discipline • Migrations and
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