Imperial Brands PLC · LSE:IMB
Imperial Brands — Imperial Tobacco Group — Investor Day (July 2011)
30 slides from Imperial Brands's investor day presentation, July 2011
Slide 1: Unlocking Our Potential
Unlocking Our Potential Fewer, bigger, better execution Arthur van Benthem Group Sales Director 1
Slide 2: My Journey
| Imperial T Tobacco My Journey
Slide 3: Unlocking Our Potential
Unlocking Our Potential 1. Sales Growth Drivers… fewer, bigger, better execution 2. Customer Engagement… leveraging shopper & customer insights 3
Slide 4: Unlocking Our Potential
Unlocking Our Potential 1. Sales Growth Drivers… fewer, bigger, better execution 2. Customer Engagement… leveraging shopper & customer insights 4
Slide 5: Priority Sales Growth Drivers
Priority Sales Growth Drivers Total Tobacco portfolio of Global, Regional and Local brands targeting core consumer needs Margin growth from superior Excise and BPPC capability Consumer needs based game-changing and scalable innovation A customer-centric route to market which maximizes Availability a
Slide 6: Fewer, Bigger, Better Execution
Fewer, Bigger, Better Execution Prioritise key initiatives Scale initiatives Sustainability 6
Slide 7: Reinvestment for Growth
Reinvestment for Growth Our Key Assets Brand Brand Total Total Market Market People People Equity Equity Tobacco Tobacco Footprint Footprint High quality investments, high returns Investment in growth Investment efficiency Scale ideas within/across markets Performance management Process, Lea
Slide 8: Portfolio
87997 Batt? Portfolio
Slide 9: Davidoff Driving Premium Growth
Davidoff Driving Premium Growth 220 Ukraine Davidoff (Indexed) Total Davidoff (Indexed) 200 180 143 160 131 140 127 120 100 113 111 80 106 60 100 40 20 0 May Aug Nov Feb May Aug Nov Feb May FY05 FY06 FY07 FY08 FY09 FY10 HY11 09 09 09 10 10 10 10 11 11 Davidoff KSSL Davidoff Slim Davidoff SSL Davidof
Slide 10: Gauloises Success in North Africa
Gauloises Success in North Africa Morocco +13% Algeria +40% Tunisia +36% 10
Slide 11: Building JPS International Profile
Building JPS International Profile 12 8 Germany UK 10 JPS Silver 6 8 JPS 6 4 4 2 Pall Mall 2 0 0 Apr Oct Apr Oct Apr Sep Sep Sep Sep Sep 09 09 10 10 11 06 07 08 09 10 500 3 Total JPS indexed volume Australia 400 2 300 JPS range 200 1 100 0 0 Sep Sep Sep Sep Sep Sep Sep Apr Oct Apr Oct Apr 04 05 06 0
Slide 12: Driving FCT Growth in EU Accession
Driving FCT Growth in EU Accession Cigarette CAGR -2% FCT CAGR +7% 130 SE CAGR -1% 120 110 billion stick equivalent 100 90 80 70 60 50 FY06 FY07 FY08 FY09 FY10 FMC FCT Imperial estimates; combined market volumes for Poland, Hungary, Czech Republic, Slovakia and Slovenia 12
Slide 13: EU Accession Share Momentum
EU Accession Share Momentum 39.7 40 35 30 23.2 23.4 market share (%) 22.7 22.2 25 21.7 18.3 17.2 20 13.6 15 7.2 10 5 0 FY06 FY07 FY08 FY09 FY10 Weighted Avge FMC Share Weighted Avge FCT Share Imperial estimates; weighted average shares for Poland, Hungary, Czech Republic, Slovakia and Slovenia combi
Slide 14: Rolling Out C. Europe Growth Model
Rolling Out C. Europe Growth Model 30 Ducados Rubio MYO in Spain 25% 25 % share of FCT category 20 15 10 5 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 10 10 10 10 10 10 10 10 10 11 11 11 11 11 14
Slide 15: Innovation
87997 Batt? Innovation
Slide 16: Capitalising on Eastern Europe Growth
Capitalising on Eastern Europe Growth 25 20 Imperial share of Growth Fair share 15 13% 10 5 0 Superslims KS Superslims 16
Slide 17: Exploiting Scalable Innovation
Exploiting Scalable Innovation Patented GlideTec innovation Consumer “wow” effect Initial launch in UK – Asda, BP, Shell & Esso Significant capacity investment Multi market roll-out planned 17
Slide 18: VIDEO – GlideTec Customer Focus Group
VIDEO – GlideTec Customer Focus Group This video has not been made available on our website
Slide 19: Pricing
87997 Bene Pricing
Slide 20: Excise Approach Germany
Excise Approach Germany Long term excise tax predictability Mix between Specific and Ad Valorem Innovative minimum excise tax Tax differentials between product categories 20
Slide 21: Enhancing our Capabilities
Enhancing our Capabilities in brand, pack, price by channel What it is Adjust Identify Define BPPC Execute Picture of Monitor & Measure Issue & Opportunity Architecture Success 21
Slide 22: Pricing Strategy Drives Growth Australia UK
Pricing Strategy Drives Growth 5 19 Australia UK Windsor Absolute Change In Brand % Share of Market Blue 18 4 17 3 % share of market 16 Sterling 15 2 14 1 13 12 0 HY 09 FY 09 HY 10 FY 10 HY 11 Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- 09 09 09 10 10 10 10 11 Source: Imperial estimates 22
Slide 23: Customer Engagement
Vo. @ Rew? Sigd’ Set? Customer Engagement
Slide 24: Outperforming in Dark Markets
Outperforming in Dark Markets Optimise local Trade Marketing capability Australia increased share by 1.8% to 18.8% in HY11 Norway market share of snus up 1.1% and cigarettes up 0.3% in HY11 24
Slide 25: Integration to Maximise USA Growth
Integration to Maximise USA Growth Outlet Distribution USA Gold USA Gold Dutch Masters This space appears blank Sonoma because we have removed the Sonoma images that appear in the presentation. Phillies Phillies This is because we currently do Backwoods not feature tobacco product Backwoods brand im
Slide 26: Unlocking Our Potential
Unlocking Our Potential 1. Sales Growth Drivers… fewer, bigger, better execution 2. Customer Engagement… leveraging shopper & customer insights 26
Slide 27: eluimy listen
ne eluimy listen
Slide 28: Understanding Stakeholder Needs
Understanding Stakeholder Needs shopper customer Shop Retention & Availability Cash flow acquisition of convenience shoppers 4. Purchase Experience High non-availability on-shelf for the industry Disappointed shoppers, missed revenue/margin Route to Market 28
Slide 29: Customer Engagement Agenda
Customer Engagement Agenda Where we Sales and channel compete strategy With a To the consumer To the customer Account management distinctive Shopper marketing Trade activation proposition Trade investments Route-to-market model How we Sales force Supply chain 3-party deliver it effectiveness
Slide 30: Maximising Shareholder Returns
Maximising Shareholder Returns High Margins Sales Strong Cash Flow Reinvest 30