Imperial Brands Plc · LSE:IMB
Imperial Brands — Investor Day (June 2023)
31 slides from Imperial Brands's investor day presentation, Jun 27, 2023
Slide 1: Disclaimer
27 JUNE 2023 – INVESTOR EVENT 1| 1 Disclaimer Certain statements in this presentation and financial effects of the plans and events historical or published earnings per share of constitute or may constitute forward-looking described in this presentation. As a result, the Company. statements. Any sta
Slide 2: Imperial Brands is a Global Enterprise
Stefan Bomhard Chief Executive Officer 27 JUNE 2023 – INVESTOR EVENT 3| 3 Imperial Brands is a Global Enterprise With a focused, challenger mindset Top five markets Americas 4th 34% Europe largest global tobacco 42% 70% of operating profit player H1 ‘23 Market Share £7.8bn net revenue 10.8% 18.3% £3
Slide 3: Our Strategy, Purpose and Vision
A Range of Tobacco and Nicotine Offerings We are committed to providing our consumers with diverse choices International Brands Local Jewels Vapour Heated Tobacco Modern Oral 5| 5 Our Strategy, Purpose and Vision Creating a common high-performance culture for Imperial Brands OUR PURPOSE “Forging a p
Slide 4: We Are Delivering Against Our Five-Year Strategy
We Are Delivering Against Our Five-Year Strategy And there is further upside ahead Stabilised aggregate top five market share +49 bps Building NGP net revenue growth in Europe +31% Driving consistent shareholder returns £4.9bn Jan 2021 Now New Global Consumer Purpose, vision, NGP trials validate Top
Slide 5: Building a Performance-Driven Culture
Building a Performance-Driven Culture To drive long-term responsible growth OUR FIVE BEHAVIOURS Consumer with Purpose with Confidence Inclusive to all our Future Global Engagement Score Carbon Reduction Scientific Assessment 74% *19% >50 2 ppt vs global engagement score benchmark 81% 6 ppt vs global
Slide 6: Forging a path to a healthier future
Andy Dasgupta Chief Consumer Officer 27 JUNE 2023 – INVESTOR EVENT 11 | 11 Forging a path to a healthier future for moments of relaxation and pleasure 12 | 12
Slide 7: Embracing a challenger mindset
Embracing a challenger mindset FASTER STRONGER BETTER TOGETHER 13 | 13 We created this Global Consumer Community 14 | 14
Slide 8: A World Class Consumer Team
A World Class Consumer Team Anand Singh Yannis Skepetaris Mattia De Melvin Ruigrok Joe Thompson Global Insights Revenue Growth Dominicis Head of Group Science & Director Management Innovation Director NGP Regulatory Affairs Director Director Jose Cabrera Antoine Blonde Rishi Dhingra Cary Nombela Tra
Slide 9: Here's how far we've come
Here’s how far we’ve come 17 | 17 Strengthening our Capabilities Acquisitive history led to fragmented approach Unlocking Value by Building a Global Consumer Office Our Past Now and the future… • Business built through • More consistent approach; common acquisition language • Led to fragmented appro
Slide 10: Putting the Consumer First
Putting the Consumer First Building our consumer facing capabilities Leveraging the strengths and capabilities of our Global Consumer Office Brand and Consumer Revenue growth portfolio Innovation NGP insight management management More consistent use Bringing greater Unlocking brand Partnership model
Slide 11: Combustible Enhancements
K@DL | West | Winston SALEM
Slide 12: Accelerating Our Pace of Innovation
23 Accelerating Our Pace of Innovation Faster, more agile, more consumer-led New Pulze 2.0 markets: Bulgaria, Regular drumbeat of Zone X Pulze 2.0 Hungary, flavour launches Portugal Jun launched 2023 HY23 NGP Europe May Net Revenue blu 2.0 blu 2.0 national 2023 Pulze 1.1 trials – trials in four Fren
Slide 13: Consumer Labs Co-Creating
Consumer Labs 25 | 25 Co-Creating… Images of consumer connect centres and consumers 26 | 26
Slide 14: Revenue Growth Management / Integrated Science
Revenue Growth Management …allowing us to mitigate cost pressure 27 | 27 Integrated Science 28 | 28
Slide 15: Everything Starting with the Consumer / People & Planet
…with Everything Starting with the Consumer 29 | 29 People & Planet 30 | 30
Slide 16: Blu Easy Returns Scheme
. ymar aument \ ‘riesgo de * | eguera BLU EASY RETURNS SCHEME HOW TO RETURN YOUR BLU PRODUCTS STEP THREE:
Slide 17: Introduction: Start with the Consumer
Introduction: Start with the Consumer Start with 9.00 Stefan Bomhard – Chief Executive the Consumer Creating a Global Consumer Office Andy Dasgupta – Chief Consumer Officer Enhancing our Consumer Insights Anand Singh – Global Insights Director A New Approach to Innovation Mattia De Dominicis – Globa
Slide 18: Start with the Consumer
Start with the Consumer This approach enables and supports one of our critical behaviours BEHAVIOUR Transforming Imperial Brands Consumer at the centre of the business Consumer 35 | 35 Refreshed Consumer Insights Approach Consumer centric culture now embedded in approach Pockets of excellence Consis
Slide 19: Developed New Consumer Capabilities
Developed New Consumer Capabilities More proactive through deep consumer understanding 400+ MAN HOURS OF IN-DEPTH 50+ CONSUMER RESEARCH BOARD/EXECUTIVE CONSUMER PROJECTS INFLIGHT AT ANY INTERACTIONS Consumer POINT IN TIME Consumer Test and In addition to regular customer Understanding Plus sensory t
Slide 20: Fulfilling Our Purpose
Fulfilling Our Purpose Understanding consumers during moments of consumption Forging a path to a healthier future for moments of relaxation and pleasure 39 | 39 TIME OF WHAT USED DEMOGRAPHICS FUNCTIONAL INDOOR/OUTDOOR ALONE/ WEEK WHAT NOT TYPOLOGIES NEEDS/ LOCATION WITH OTHERS TIME OF DAY USED EMOTI
Slide 21: Unique Context Drives Dimension Nuances
DEMAND SPACES OFFER A NEW WAY OF THINKING AND THE OPPORTUNITY TO BETTER ADDRESS CHALLENGES 41 | 41 Unique Context Drives Dimension Nuances The same category used, but different choice drivers STIMULATE CONNECT RE-ALIGN KEEP GOING BRING BRINGJOY JOY FILL TIME TAKE A BREAK 7% PROGRESS IMPRESS GET READ
Slide 22: Unique Context Drives Dimension Nuances
43 | 43 Unique Context Drives Dimension Nuances The same category used, but different choice drivers STIMULATE CONNECT RE-ALIGN KEEP GOING BRING BRINGJOY JOY FILL TIME TAKE A BREAK 7% PROGRESS IMPRESS GET READY KEEP BONDED UNWIND 44 | 44
Slide 23: Unique Context Drives Dimension Nuances
45 | 45 Unique Context Drives Dimension Nuances The same category used, but different choice drivers STIMULATE CONNECT RE-ALIGN KEEP GOING BRING BRINGJOY JOY FILL TIME TAKE A BREAK 7% PROGRESS IMPRESS GET READY KEEP BONDED UNWIND 46 | 46
Slide 24: Improved Consumer Understanding
Improved Consumer Understanding We can use this to position different formats meaningfully STIMULATE CONNECT RE-ALIGN KEEP GOING Relevance vs BRING BRINGJOY JOY FILL TIME TAKE A BREAK Total Vapour Relevance vs 7% Pod Disp. Total Vapour * 100 88 Pod Disp. PROGRESS IMPRESS 121 106 GET READY KEEP BONDE
Slide 25: Consumer Insights - Summary
Enterprise-Wide Consumer Access ‘Consumer connect’ enables access across the organisation 49 | 49 Consumer Insights - Summary Helping drive data-led ‘consumer first’ approach Consistent global approach applied across all nicotine categories and markets Common language around consumer typologies, nee
Slide 26: A New Approach to Innovation
Mattia De Dominicis Global Innovation Director 27 JUNE 2023 – INVESTOR EVENT 51 | 51 A New Approach to Innovation A differentiated approach Consumer-led: informed by Dimensions model Collaborating internally across functions with consumer and science in mind Partnership model: working as true partne
Slide 27: True Consumer-led Innovation
Enhancing Consumer Centricity as a Challenger Creating a healthier future Collaborating internally & externally Consumer co-ideation Technology strategy Partnering ecosystem Consumer our Future with Purpose Agility with Confidence Consumer our Future with Purpose Inclusive to all 53 | 53 True Consum
Slide 28: True Consumer-led Innovation
55 | 55 True Consumer-led Innovation Co-ideating with consumers & partners Sense Hub ® Consumer centre enabling immediate feedback Pre/prototyping capability Co-located to enable fast turnaround on prototypes Partnership ecosystem Partners working alongside consumers and Imperial 56 | 56
Slide 29: Building our Innovation Capabilities
57 | 57 Building our Innovation Capabilities Further enhancing for continuous improvement Liverpool nd 2 May 2023 Sense HUB® Pre/Prototyping lab Pilot facilities Hamburg Nov 2023 Sense HUB® Shenzhen Pre/Prototyping lab Dec 2023 New Laboratory Sensory capabilities Innovation & consumer centre Partner
Slide 30: Modern Oral Nicotine - Zone X Innovation
Modern Oral Nicotine - Zone X Innovation Design thinking and co-ideation with flavour house partner Trends & consumers Co-ideation with consumers • Flavour partner • Using qualitative approaches • Understanding consumers 1 2 • Identify range of possibilities • Identifying trends • Selecting best dir
Slide 31: Vaping - Blu Bar Innovation
Vaping - Blu Bar Innovation Scrum for speed: six months from brief to market launch & new variants Sprint 1: Sprint 3: July 23 May-July ‘22 Sept-Nov • Releasing four additional • Small cross functional • Production & shipment flavours team • Finalising toxicology • Understanding testing consumers •