Imperial Tobacco Group PLC
Annual Report and Accounts 2015
Annual Report 2015
Disclaimer: This video supplements, but does not form part of, the Annual Report and Accounts
Dividend Per Share
Adjusted Earnings Per Share1,3
Tobacco Net Revenue1,3
Adjusted Operating Profit1
Growth Brand Volumes3
Adjusted Net Debt4
Adjusted Net Debt Reduction5
- Changes in our adjusted results are presented on a constant currency basis.
- Underlying change. See explanation in the Performance Measures table below.
- KPIs used as bonus and LTIP performance criteria for Executive Directors. See Remuneration Report for more information.
- Includes the £4.6 billion cost of the US acquisition.
- Excludes the £4.6 billion cost of the US acquisition.
How We Create Value
Click on the graphic below to find out about our Strategy and Business Model.
Our strategy aims to maximise sales, cost and cash opportunities to deliver sustainable returns to shareholders. We are strengthening our portfolio by building the contribution of our Growth and Specialist Brands, supported by new launches from Fontem Ventures, and a strategic focus on share and profit performance is central to the development of our geographic footprint. Our cost optimisation programme is improving efficiencies and by embedding stronger capital discipline we are more effectively managing working capital and achieving high cash conversion.
Our business model shows how we create value. We are improving the quality of our growth by driving the performance of our Growth and Specialist Brands, which combined with effective cost management, delivers high operating margins. This generates the strong cash flows that are a hallmark of our business. We use this cash to reinvest in the business, pay down debt or return to shareholders through dividends, which we are committed to growing by at least 10 per cent a year over the medium term.
We’re optimising our portfolio to focus on our Growth and Specialist Brands. These are the most important brands in our portfolio and generate more than half our tobacco net revenue.
Our Growth Brands have broad consumer appeal and account for 50.9 per cent of our total volumes. We manage our Growth Brands to
drive quality sustainable growth.
Our Specialist Brands are enjoyed by specific consumer groups and include cigarette, fine cut tobacco, paper, cigar and smokeless tobacco brands. Specialist Brands have a track record of generating strong returns.
As a result of the USA acquisition these brands have been reclassified, effective 1 October 2015. Details are on page 9 of the Annual Report.