Imperial Brands PLC · LSE:IMB
Imperial Brands — Imperial Tobacco Group — Shareholder Meeting (February 2016)
27 slides from Imperial Brands's shareholder meeting presentation, Feb 3, 2016
Slide 1: Annual General Meeting 2016
Annual General Meeting 2016 Imperial Tobacco Group PLC 3 February 2016
Slide 2: Mark Williamson, Chairman
Mark Williamson Chairman
Slide 3: Our Priorities for FY15
Our Priorities for FY15 what we said last year Target of at least 10% increase in dividend Strengthen Develop Cost Capital Portfolio Footprint Optimisation Discipline Enhance brand equity to Building momentum Deliver further savings Embedding cash build sustainability across Growth Markets a
Slide 4: Delivering on our Priorities
Delivering on our Priorities good progress against strategy Dividend up 10% to 141.0p Strengthen Develop Cost Capital Portfolio Footprint Optimisation Discipline Quality of revenue further Realising opportunities in Programme delivering Cash conversion 97% improved; Growth & Growth Markets a
Slide 5: Alison Cooper, Chief Executive
Alison Cooper Chief Executive
Slide 6: Group Results
Group Results delivering against the strategy Movement in Constant Constant FY14 Foreign Currency FY15 FY15 vs FY14 Currency Exchange Growth Tobacco net revenue (£m) 6,421 (447) 277 6,251 -3% +4% Tobacco operating profit (£m) 2,805 (115) 205 2,895 +3% +7% Adjusted operating profit (£m) 2,981 (131) 2
Slide 7: FY15 Volume
FY15 Volume maintaining market share +3% (4%) (4%) +2% 294 285 FY14 reported Iraq and Syria USA FY14 stock Market size FY15 reported volume acquisition optimisation volume 7
Slide 8: Strengthening our Portfolio
Strengthening our Portfolio further migrations success Global Source Final Pack Endorse Destination Stage Change High consumer retention rates 21 migrations complete; 20 in progress Growing share of Growth Brands 8
Slide 9: Strengthening our Portfolio
Strengthening our Portfolio improved quality of revenue Growth and Specialist Brands Portfolio Brands Improving quality of growth 49% 46% 43% Reducing complexity and cost 51% 54% 57% FY13 FY14 FY15 FY15 Growth and Specialist Brand % excluding impact of USA acquisition is 59% 9
Slide 10: Strengthening our Portfolio
Strengthening our Portfolio developing new consumer experiences Strong Brand Equity Technical Knowhow Footprint Priorities Intellectual Property 10
Slide 11: Developing our Footprint
Developing our Footprint building presence in Growth Markets Russia Taiwan Leading in big box formats Increasing profitability Maxim supports stable share Davidoff growth Revenue and profits up West initiatives Japan Norway Investment focus Skruf slim momentum Growing capability an
Slide 12: Developing our Footprint
Developing our Footprint positive performance in Returns Markets UK Australia Market leading position Another strong year Investing in sub economy share growth Revenue, profit and share growth Focus on strengthening portfolio No.1 brands in cigarette and fine cut Germany Spain Excellen
Slide 13: Developing our Footprint
Developing our Footprint strong start for ITG Brands Share of acquired brands stable at 6.7% USA Gold held overall share Investment focus on four brands Revised mass market cigar approach Premium Discount 13
Slide 14: Developing our Footprint
Developing our Footprint all integration activities on track Experienced team managing business Lorillard and Commonwealth-Altadis combined Integration in line with original planning Manufacturing transition running smoothly Sales Growth 14
Slide 15: Cost and Cash Management
Cost and Cash Management supports our growth strategy £300m savings pa by 2018 Total of £180m delivered so far; £85m in 2015 Further £55m expected in 2016 Cash conversion increased to 97% £1.1bn reduction in like-for-like debt 15
Slide 16: Evolving our Operating Model
Evolving our Operating Model supports our growth strategy Changing operating model to improve performance Reviewing systems, processes and structures Implementing new and simpler ways of working Strengthening business flexibility and agility Driving a greater focus on growth priorities 16
Slide 17: Corporate Responsibility
Corporate Responsibility Employees supporting our CR agenda More than 50,000 hours volunteered We can I own I am We Surprise I engage We enjoy 98% score in Business in Community CR Index 76% score in Dow Jones Sustainability Index 17
Slide 18: Strong Consumer Brands
Strong Consumer Brands | ise
Slide 19: Strong Corporate Brands
Strong Corporate Brands IMPERIAL TOBACCO GROUP PLC IMPERIAL ITG FONTEM TABACALERA LOGISTA TOBACCO BRANDS VENTURES 19
Slide 20: Strong Corporate Brands
Strong Corporate Brands IMPERIAL BRANDS PLC IMPERIAL ITG FONTEM TABACALERA LOGISTA TOBACCO BRANDS VENTURES 20
Slide 21: Our Priorities for FY16
Our Priorities for FY16 Deliver at least 10% increase in dividend Strengthen Develop Cost Capital Portfolio Footprint Optimisation Discipline Further portfolio Build on Growth Market Deliver £55m in FY16 Maintain cash simplification opportunities conversion discipline Focus on further Bu
Slide 22: Annual General Meeting 2016
Annual General Meeting 2016 Imperial Tobacco Group PLC 3 February 2016
Slide 23: Resolutions 1 - 3
Resolutions 1 - 3 For Against Abstentions Annual Report and Accounts 99.63% 0.01% 0.36% Directors’ Remuneration Report 92.99% 5.08% 1.93% To declare a final dividend 99.64% 0.00% 0.36% 23
Slide 24: Resolutions 4 - 11
Resolutions 4 - 11 Director For Against Abstentions Mrs A J Cooper 99.23% 0.40% 0.37% Mr D J Haines 98.75% 0.89% 0.37% Mr M H C Herlihy 99.50% 0.13% 0.37% Mr M R Phillips 98.78% 0.85% 0.37% Mr O R Tant 98.39% 1.24% 0.37% Mr M D Williamson 99.27% 0.37% 0.37% Mrs K Witts 99.50% 0.13% 0.37% Mr M I Wyma
Slide 25: Resolutions 12 - 15
Resolutions 12 - 15 For Against Abstentions Reappointment of Auditors 96.30% 2.63% 1.07% Remuneration of Auditors 97.46% 1.44% 1.10% Donations to political organisations 97.75% 1.05% 1.20% Authority to allot shares 98.89% 0.71% 0.40% 25
Slide 26: Special Resolutions 16 - 19
Special Resolutions 16 - 19 For Against Abstentions Disapplication of pre-emption rights 98.89% 0.74% 0.37% Purchase of own shares 99.34% 0.29% 0.37% Change of Company name 99.51% 0.10% 0.38% Notice period for general meetings 89.55% 10.06% 0.40% 26
Slide 27: Annual General Meeting 2016
Annual General Meeting 2016 Imperial Tobacco Group PLC 3 February 2016
Imperial Tobacco Group — Shareholder Meeting (February 2016) on 6ix