Financial Data and Key Metrics Changes - The company reported a year-on-year improvement in leverage to 2.4x, with free cash flow of GBP 336 million in the first half of the year [19][30] - Earnings per share growth exceeded expectations, driven by increased operating profit and lower finance costs due to early debt repayment [19][27] - Net revenue grew by 0.3% at constant currency, with tobacco volumes declining only 0.7% [20][21] Business Line Data and Key Metrics Changes - The NGP portfolio saw net revenue up 8.7% at constant currency, reflecting strong performance across heated tobacco, moderate oral, and vapor categories [23] - Adjusted operating profit grew by 2.9% at constant currency, with the majority of profit growth coming from improved NGP performance [24] - The company achieved a 25 basis points improvement in aggregate market share for its top 5 markets, marking the third consecutive half-year period of stable or positive share numbers [11][12] Market Data and Key Metrics Changes - Market volumes are reverting to historical trends as COVID-19 restrictions are lifted, with declines in the U.S. market attributed to the removal of fiscal stimulus payments [20][31] - The U.S. market delivered strong underlying performance, with share gains achieved following KT&G's exit from the market [12][43] - In Germany, market size contraction was noted due to increased cross-border travel, impacting performance [20][44] Company Strategy and Development Direction - The company is focused on a 5-year strategy aimed at building a more sustainable business, with a two-year strengthening phase followed by a three-year acceleration phase [8][9] - The strategy emphasizes targeted investments in the top 5 combustible markets, which account for 70% of operating profit, and building a material NGP business [7][8] - The company aims to create a performance-based culture and has completed senior hires for its new group consumer office [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate inflationary pressures and consumer spending challenges, highlighting the resilience of the tobacco industry [68] - The company anticipates that price increases taken in the first half will support revenue growth in line with previous guidance of 0% to 1% [31] - Management acknowledged the challenges posed by the current economic environment but remains committed to delivering on its strategic plan [58] Other Important Information - The company has exited the Russian market and is focused on safeguarding its Ukrainian employees [10] - A restructuring program is underway to simplify the business and unlock efficiency savings, with expected annualized savings of around GBP 90 million by the end of fiscal year '22 [26][30] - The company is committed to becoming a net-zero company by 2040, with significant progress made in sourcing renewable electricity [40][41] Q&A Session All Questions and Answers Question: Progress in Germany's Market - Management confirmed that the strategic plan for Germany is on track, focusing on sales activation and rebuilding brand equity, particularly for the JPS brand [63][64] Question: Consumer Environment and Down-Trading Risks - Management reassured that the company is well-positioned to manage potential down-trading due to its diverse portfolio across price points [68] Question: Investment in NGP Strategy - Management indicated that NGP losses are expected to be around GBP 140 million for the year, with investments included in the overall guidance [70] Question: Sales Force Deployment in Germany - Management noted that the focus in Germany has been on redeploying the sales force to important channels, with satisfactory progress reported [75] Question: Operating Profit Growth Drivers - Management highlighted that the primary driver for future growth will be sustainable contributions from the core business, supported by ongoing investments in brands and sales force [79]

* MPERIAS 1 | INTERIM RESULTS 17 MAY 2022 2 | DELIVERING ON OUR STRATEGIC PRIORITIES Stefan Bomhard CEO Disclaimer Certain statements in this announcement constitute or may constitute forward-looking statements. Any statement in this announcement that is not a statement of historical fact including, without limitation, those regarding the Company's future expectations, operations, financial performance, financial condition and business is or may be a forward-looking statement. Such forward-looking statement ...

Financial Data and Key Metrics Changes - The company reported a net revenue growth of 1.4% at constant currency, with total volumes declining by 2.9% [26] - Tobacco net revenue grew by 1.5%, driven by a price mix of 4.4%, while excluding excise changes in Australia, tobacco net revenue grew by 2.7% [27] - Free cash flow was £1.5 billion, with a reduction in leverage and a 1% growth in the dividend [17][35] - Earnings per share (EPS) increased by 2.8% at constant currency, reflecting profit delivery and lower interest charges [34] Business Line Data and Key Metrics Changes - The Next Generation Products (NGP) net revenue was broadly stable, but grew by 8.6% when excluding market exits [28] - Adjusted operating profit grew by 4.8% at constant currency, impacted by various factors including lower stock profits in Australia and litigation charges in the U.S. [29] Market Data and Key Metrics Changes - The U.S. market represents about 35% of tobacco profit, with market share gains in the sub-premium segment and a 45% increase in mass-market cigar volumes [61][63] - In Germany, market share performance improved over the last four months, although the company lost share overall [65] - In Australia, the company adjusted prices to reflect brand equity, leading to share gains in the second half of the fiscal year [68] Company Strategy and Development Direction - The company aims to transform into a business capable of delivering reliable, attractive returns over the long term, focusing on five key combustible markets that generate around 70% of profits [4][8] - A new focus on consumer-centric strategies and a refreshed leadership team has been implemented to support operational improvements [12][13] - The company is committed to harm reduction through its NGP business, with a disciplined approach to investment and market entry [10][56] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by COVID-19 and regulatory changes but expressed confidence in the strategic focus on key markets [89] - The outlook for fiscal year 2022 includes expectations for net revenue growth similar to the previous year, with a focus on maintaining market share and improving operational performance [39][40] - Management emphasized the importance of a strong balance sheet and disciplined capital allocation as key priorities moving forward [38][85] Other Important Information - The company has committed to achieving net zero emissions by 2040 and has strengthened its ESG team to enhance sustainability efforts [58][59] - A restructuring program is in place to deliver savings and optimize the NGP business, with an annualized savings target of nearly £70 million by the end of fiscal year 2022 [31] Q&A Session Summary Question: Outlook for major markets post-COVID - Management indicated that predicting the impact of COVID-19 on volume outlook is challenging, with potential headwinds in the UK and Germany due to changes in consumer behavior and tax increases [89][90] Question: NGP losses and future expectations - Management expects NGP losses to continue declining in fiscal year 2022, with ongoing investments in testing and trials [92] Question: Confidence in mid-single-digit EBIT growth - Management expressed confidence in achieving mid-single-digit EBIT growth due to a strategic focus on key markets and improved market share performance [94][95] Question: E-cigarettes in the UK medicinal channel - Management is encouraged by the UK government's recognition of vaping as a smoking cessation tool and is evaluating participation in the medicinal channel for blu [99][100] Question: Progressive dividend policy - Management confirmed the commitment to a progressive dividend policy, emphasizing the importance of maintaining a strong balance sheet before considering capital returns [103][106]

Financial Data and Key Metrics Changes - The company reported a net revenue growth of 3.5%, driven by strong pricing in tobacco and better NGP sales against a weak comparator period [12][23] - Adjusted operating profit increased by 8.1%, with underlying tobacco profitability growing almost 5% [14][30] - Net cash flow for the 12-month period was GBP 2.5 billion, supporting debt reduction priorities [15][31] - Adjusted net debt to EBITDA ratio improved to 2.6x, down from 2.7x at the end of September [33] Business Line Data and Key Metrics Changes - Total tobacco volumes declined by 3.3%, with a 1.3% reduction from the global duty-free business [21] - NGP revenues increased by 16% against a weak comparator, benefiting from targeted investments [23][62] - Underlying NGP operating income improved by GBP 46 million due to a more targeted investment approach [28] Market Data and Key Metrics Changes - Market share in the five priority markets increased modestly by 6 basis points, reversing a 37 basis points decline from the previous year [12][40] - The U.S. market saw share growth in cigarettes, with a focus on maintaining share in the premium value segment [43] - Northern European markets benefited from higher domestic sales and lower levels of illicit trade, while Southern European markets faced volume reductions [22] Company Strategy and Development Direction - The company is focused on implementing a new strategy aimed at stabilizing market share and improving performance in priority markets [10][36] - There is a clear market prioritization in place, with investments realigned to support strategic initiatives in the five priority markets [16][39] - The company aims to build a successful NGP business while supporting harm reduction, with plans for market trials in heated tobacco and vapor [55][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver full-year results in line with guidance despite ongoing COVID-19 impacts [11][72] - The outlook for the second half anticipates modest growth in tobacco profitability, with continued investments in NGP [73] - Management emphasized the importance of consumer insights and data in driving future strategies and operational changes [64][66] Other Important Information - The company is undergoing leadership changes, with a new Chief Consumer Officer appointed to enhance consumer engagement [65][69] - The organizational structure is being simplified to improve efficiency and focus on strategic priorities [68] Q&A Session Summary Question: On leverage and share repurchases - Management acknowledged progress in deleveraging but noted that currency fluctuations have impacted net debt levels [80][81] Question: On Pulze product launch and patent litigation - Management indicated that the Pulze product has been in the market without litigation challenges, suggesting confidence in the upcoming launch [84] Question: On pricing architecture in Australia - Management expressed confidence in the pricing architecture, stating that recent share losses were due to strategic price increases [107][109] Question: On U.S. vapor market turnaround - Management plans to reset marketing and route-to-market capabilities for the blu brand, aiming to regain lost market share [110]

Interim Results 2021 Imperial Brands PLC 18 May 2021 Disclaimer Certain statements in this announcement constitute or may constitute forward-looking statements. Any statement in this announcement that is not a statement of historical fact including, without limitation, those regarding the Company's future expectations, operations, financial performance, financial condition and business is or may be a forward-looking statement. Such forward-looking statements are subject to risks and uncertainties that may c ...

Financial Data and Key Metrics Changes - The company reported a 1.8% increase in Tobacco net revenue, driven by a strong second half performance in the U.S. and a return to growth in the AAA division [45] - Adjusted operating profit decreased by 4.8% at constant currency, with Tobacco profits down £118 million [61] - Earnings per share (EPS) declined by 5.6%, reflecting a higher tax rate [45][46] Business Line Data and Key Metrics Changes - Tobacco volumes declined by 2.1%, with a 3.5% decrease in Europe and a 3.3% decline in the Americas [36][47] - NGP (Next Generation Products) revenue fell by 27%, primarily due to destocking and reduced investment levels [45][55] - The AAA division saw a 5% increase in net revenue, supported by strong performance in the Middle East and Africa [59] Market Data and Key Metrics Changes - The company gained 50 basis points in total market share, with growth in seven of its ten priority markets, although it continued to lose share in the UK and Germany [45][51] - The U.S. market saw a cigarette share increase for the second consecutive year, driven by successful product offerings [53] - The overall market size decreased by 4.3%, with stronger performance in Northern Europe and the U.S. offset by declines in Australia and Spain [54] Company Strategy and Development Direction - The company is undergoing a strategic review to address performance issues and improve accountability, focusing on core markets and enhancing management oversight [14][72] - There is an emphasis on consumer insights and adapting to changing consumer preferences, particularly in the NGP segment [25][32] - The company aims to strengthen its organizational capabilities and improve capital allocation to support strategic objectives [33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the resilience of tobacco demand despite challenges posed by COVID-19, with expectations for a cautious recovery in 2021 [35][70] - The company is taking a disciplined approach to managing NGP investments, with a focus on improving execution and product differentiation [26][27] - Future performance is expected to be impacted by ongoing COVID-19 restrictions and regulatory costs, with a cautious outlook for the duty-free business [70][71] Other Important Information - The company completed the sale of its Premium Cigar business for €1.2 billion, which will be used to support deleveraging efforts [37] - An ESG Steering Committee has been established to enhance the company's focus on environmental, social, and governance issues [41][42] Q&A Session Summary Question: Trends on blu in the U.S. and market share improvement - Management noted a flattening of market share for blu and indicated that future NGP strategy details will be shared at the Capital Markets Day [77] Question: Potential divestiture of non-core assets - Management confirmed that a rigorous review of business units is underway, but specific divestiture plans will be discussed post-strategic review [79] Question: Margin reset concerns and EPS guidance - Management reassured that there will not be a major margin reset and that current guidance is expected to be retained [83] Question: Focus on top five markets - Management emphasized the importance of focusing on the top five markets that significantly impact business performance [85] Question: Impact of excise tax cycles in Australia and France - Management indicated that while excise tax cycles may be stabilizing, Australia is expected to face headwinds due to previous duty windfalls [88] Question: Changes in profitability concentration among main markets - Management acknowledged that profitability has increasingly concentrated in the top five markets, which are critical for overall performance [92][94] Question: Agility in decision-making and organizational structure - Management highlighted that becoming more agile involves cultural changes and improved focus on core markets rather than structural IT investments [96] Question: Trends in fine cut tobacco - Management observed that fine cut tobacco has seen growth in certain markets, primarily due to shifts from illicit trade rather than consumer down-trading [98]

Financial Performance - Imperial Brands' FY20 constant currency tobacco net revenue decreased by 0.1% to £8,053 million[44], while NGP net revenue decreased significantly by 27% to £201 million[44, 57] - The company's adjusted operating profit decreased by 4.8% in constant currency to £3,527 million[60, 81] - Adjusted EPS decreased to 254.4 pence, impacted by operating profit decline, but partly offset by share buybacks[28, 89] - The company achieved a strong underlying cash conversion rate of 107%, excluding a 20% benefit from a change in the timing of excise payments in the UK & Logista[28, 29] - Net debt reduction was £1.1 billion before FX and changes in fair value of derivatives[28] Volumes and Market Share - Overall volumes decreased by 2.1%[28] - Europe volumes decreased by 3.5%, while Americas volumes increased by 0.4% and AAA volumes increased by 4.8%[33] - The company reported improving sequential share in Germany and the UK, and share gains in US cigarettes[40] Outlook and Priorities - The company expects a stronger financial performance in 2021, with low-mid single digit organic operating profit growth and EPS slightly ahead at constant currency[69, 75] - Priorities for 2021 include concluding the strategic review, implementing a revised strategy, strengthening performance management, and combining existing strengths with fresh perspectives[77, 79]

Financial Data and Key Metrics Changes - The operating profit declined by 8.5%, with over 6% attributed to one-off charges related to the write-down of flavored pods in the US and slow-moving inventory [24][36] - Earnings per share (EPS) decreased by just over 9% in constant currency, slightly better than guidance, driven by a 2% improvement from trading [28][59] - Overall revenues declined by 0.9% for the period, with tobacco revenues up by 0.9% supported by strong volume performance and pricing [26][35] Business Line Data and Key Metrics Changes - Tobacco volumes declined by only 0.5%, with growth in the Middle East and Southeast Asia contributing positively [30] - NGP (Next Generation Products) net revenue declined by 43%, reflecting destocking in Europe and the US, although sellout rates remained resilient [34][78] - The tobacco business saw a net revenue growth of just under 1% for the half, while NGP-related write-downs impacted profit significantly [36][34] Market Data and Key Metrics Changes - The company experienced a decline in duty-free and travel retail sales due to international travel restrictions, which is expected to continue [10][60] - In the US, market share grew, with a cigarette price/mix increase of over 5%, although this was offset by lower Backwoods revenue [68] - European markets showed a decline in tobacco volumes by 3%, but revenues grew by 0.5% due to positive pricing in several markets [78] Company Strategy and Development Direction - The company is focusing on a 'back to basics' approach to tobacco, enhancing in-market execution and prioritizing high-margin products [13][84] - A strategic shift has been made to right-size investments in NGP, focusing on effective investment behind blu and reducing spending in less effective areas [15][53] - The board has decided to rebase the dividend by one-third to strengthen the balance sheet and accelerate debt reduction [18][54] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by COVID-19 but emphasized the resilience of the tobacco business, which remains broadly stable [59][60] - The company expects continued downtrading in the market, particularly towards value formats, but is well-positioned due to lower exposure to premium products [62] - Future performance is expected to be impacted by the ongoing effects of COVID-19, particularly in duty-free and travel retail operations [60][64] Other Important Information - The company has secured a new €3.5 billion multi-currency revolving credit facility and additional bank facilities to improve liquidity [47][48] - The sale of the Premium Cigar business is expected to strengthen the balance sheet and reduce net debt to EBITDA by around 0.2 times [49][50] - The company is committed to its ESG agenda and is developing KPIs for priority ESG issues [22] Q&A Session Summary Question: Concerns about downtrading to illicit products post-2008 - Management noted a reduction in illicit trade during COVID-19 due to closed borders, and they are adapting offerings to consumer demands to mitigate downtrading risks [88][90] Question: US volume guidance for FY 2020 - Management refined the guidance to expect total market volumes to be down around 5%, while focusing on growing market share [94][97] Question: NGP losses and investment focus - Management indicated a focus on OND (Oral Nicotine Delivery) while moderating investments in heated tobacco and EVP (Electronic Vapor Products) due to varying consumer loyalty [98][100] Question: Dividend reduction and potential for buybacks - The board emphasized prioritizing debt reduction over share buybacks in the short term, with a review of shareholder returns expected in 2022 [111][115] Question: Impact of duty-free sales transition to local markets - Management expects a slight positive impact on price mix despite lower volumes, as consumers will purchase in home markets where margins may be higher [120]

Financial Performance - Tobacco & NGP net revenue decreased by 1.7% to £3,592 million[19] - Tobacco net revenue increased by 0.9% to £3,509 million[19] - Tobacco & NGP adjusted operating profit (AOP) decreased by 10.1% to £1,383 million[19] - Adjusted EPS decreased by 10.9% to 103.0 pence[19] - The company rebased dividend by one third to strengthen the balance sheet[41] Volumes and Pricing - Tobacco volumes decreased by 0.5%[19] - Strong cigarette pricing was partly offset by mix[22] - NGP net revenue decreased by 43%[28] Regional Performance - Americas: Tobacco net revenue was flat, NGP net revenue decreased by 50.8%, and adjusted EBIT decreased by 11.8%[45] - AAA: Tobacco net revenue increased by 2.9%, NGP net revenue increased by 57.1%, and adjusted EBIT decreased by 7.9%[52] - Europe: Tobacco net revenue increased by 0.5%, NGP net revenue decreased by 56.2%, and adjusted EBIT decreased by 6.7%[60] Cash Flow and Debt - Cash conversion was 103%[19] - Annualized net debt movement was a decrease of £0.1 billion[19] - Adjusted net debt was £13,476 million[71] Outlook - Revised FY20 expectations: EPS (constant currency) -3% plus COVID impact[43]

Creating Something Better for the World's Smokers Imperial Brands PLC: CAGNY 2020 20 February 2020 Disclaimer Certain statements in this presentation constitute or may constitute forward-looking statements. Any statement in this presentation that is not a statement of historical fact including, without limitation, those regarding the Company's future expectations, operations, financial performance, financial condition and business is or may be a forward-looking statement. Such forward-looking statements are ...