Imperial Brands PLC · LSE:IMB

Imperial Brands — Imperial Tobacco Group — Investor Presentation (September 2010)

17 slides from Imperial Brands's investor presentation, Sep 28, 2010

  1. Slide 1: Morocco: Maximising our Growth Potential

    Morocco Maximising our Growth Potential Martin Carroll General Manager Altadis Maroc 28 September 2010 1

  2. Slide 2: Agenda

    Agenda ƒ Strategic direction ƒ Moroccan market overview – market update – regulatory environment ƒ Preparations for the ending of the monopoly ƒ Outlook for the future 2

  3. Slide 3: From Managing to Competing

    From Managing to Competing ƒ Customer focused route to market strategy ƒ Long term Philip Morris contract ƒ Manufacturing right sizing ƒ Comprehensive portfolio strategy ƒ Trade marketing excellence 3

  4. Slide 4: Market Overview

    Market Overview ƒ c.17 billion cigarette market (c.15 billion duty paid) ƒ Dark brands in decline ƒ International brands growing ƒ Highly concentrated trade – 9,000 outlets account for 83% of market volumes ƒ Relatively high pricing Imperial estimates 4

  5. Slide 5: Regulatory Environment

    Regulatory Environment ƒ Regulatory changes expected in 2011 – restrictions on smoking in public places – bigger on-pack health warnings ƒ No new brand launches at a price lower than market average ƒ Price reductions prohibited 5

  6. Slide 6: Cigarette Price Segments

    Cigarette Price Segments 100 90 80 market share (%) 70 60 50 40 30 20 10 0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 E Economy Mid Premium Imperial estimates; international brands included in premium & mid segments 6

  7. Slide 7: Market Leading Position

    Market Leading Position 83.3% Imperial JTI PMI Imperial estimates; MAT August 2010 7

  8. Slide 8: Strategy to Compete

    Strategy to Compete 8

  9. Slide 9: Our Response: Route to Market

    Our Response route to market Previous distribution system New distribution system ƒ Cash & Carry deliveries ƒ Focus on truck and van deliveries ƒ Truck deliveries to rural areas ƒ Cash & Carry’s closed ƒ Van deliveries to urban ƒ Improved efficiency and customers customer service ƒ Telesales operati

  10. Slide 10: Our Response: PMI Agreement

    Our Response PMI agreement ƒ Agreement signed February 2009 ƒ Manufacture, distribution and merchandising – all PMI brands in Morocco – Marlboro produced at Ain Harrouda factory – combined market share provides strong brand platform – brand support provided via sales’ cycle activities 10

  11. Slide 11: Our Response: Manufacturing Right-sizing

    Our Response manufacturing right-sizing ƒ Closure of Tetouan factory in March 2010 ƒ Investment in machinery and training ƒ Capacity at Ain Harrouda has doubled between 2006 and 2010 ƒ Raising standards with the introduction of ISO Certifications 11

  12. Slide 12: Our Response: Comprehensive Portfolio Strategy

    Our Response comprehensive portfolio strategy 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. 12

  13. Slide 13: Our Response: Trade Marketing Excellence

    Our Response trade marketing excellence ƒ Creation of a trade marketing function ƒ Introduction of Siebel customer relationship system ƒ New business intelligence function ƒ Embedded furniture programme with top retailers 13

  14. Slide 14: Outlook: Well Positioned for the Future

    Outlook well positioned for the future ƒ Market leading position ƒ Well-balanced brand and product portfolio across all segments ƒ Only operator distributing exclusively to all tobacconists ƒ Strong relationships with the retailers ƒ Structural and strategic changes will improve profitability 14

  15. Slide 15: Profit 2005-2009

    Profit 2005-2009 consistent profitable growth 180 171 165 160 147 140 125 120 index 100 100 80 60 40 20 0 2005 2006 2007 2008 2008/09 15

  16. Slide 16: Strategic Focus

    Strategic Focus Delivering Sustainable Shareholder Returns Growth drivers Cost Sales Cash Optimisation Growth Utilisation Our key assets Brand Total Market Sales & CRM Equity Tobacco People Footprint training Leverage local & global brands How we leverage our assets Proactive Consumer Act as #1 Exec

  17. Slide 17: Morocco: Maximising our Growth Potential

    Morocco Maximising our Growth Potential Martin Carroll General Manager Altadis Maroc 28 September 2010 17

Imperial Tobacco Group — Investor Presentation (September 2010) on 6ix