Imperial Tobacco Group PLC
Annual Report and Accounts 2015

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Annual Report 2015

Disclaimer: This video supplements, but does not form part of, the Annual Report and Accounts

Mark Williamson Chairman Mark Williamson Chairman
We delivered another good performance in 2015, creating further sustainable value for our shareholders. This was achieved through the consistent execution of our strategy, which is focused on maximising sales, cost and cash opportunities.
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Alison Cooper Chief Executive Alison Cooper Chief Executive
This was another successful year for Imperial, one in which we delivered a good underlying performance and made further progress with our strategic transition.
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Oliver Tant Chief Financial Officer Oliver Tant Chief Financial Officer
Effective cost and cash management supports our sales growth strategy. We use our substantial cash flows to create returns for shareholders, pay down debt and reinvest to support growth. By focusing on cash generation and working capital we are embedding a stronger capital discipline in the business.
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We delivered another good performance in 2015, creating further sustainable value for our shareholders. This was achieved through the consistent execution of our strategy, which is focused on maximising sales, cost and cash opportunities.
Download Chairman’s Statement
This was another successful year for Imperial, one in which we delivered a good underlying performance and made further progress with our strategic transition.
Download Chief Executive’s Review
Effective cost and cash management supports our sales growth strategy. We use our substantial cash flows to create returns for shareholders, pay down debt and reinvest to support growth. By focusing on cash generation and working capital we are embedding a stronger capital discipline in the business.
Download Financial Review

Performance Highlights

Dividend Per Share

+10.1%
141.0p

Adjusted Earnings Per Share1,3

+8.2%
212.5p

Tobacco Net Revenue1,3

+3%2
£6.3bn

Adjusted Operating Profit1

+7%
£3.1bn

Cash Conversion3

+590bps
97%

Growth Brand Volumes3

+7%2
£145bn

Adjusted Net Debt4

+£3.5bn
£11.6bn

Adjusted Net Debt Reduction5

-13%
£1.1bn

  1. Changes in our adjusted results are presented on a constant currency basis.
  2. Underlying change. See explanation in the Performance Measures table below.
  3. KPIs used as bonus and LTIP performance criteria for Executive Directors. See Remuneration Report for more information.
  4. Includes the £4.6 billion cost of the US acquisition.
  5. 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.

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  • Business Model Diagram

Our Brands

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.

Growth Brands1

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.
 

Davidoff
Gauloises
P&S
News
West

Bastos
Fine
USA Gold
JSP
l&b

Specialist Brands1

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.

Cohiba
Golden Virginia
Route 66
Style
Rizla
Rizla

backwoods
Scruf
Romea Juliet
Montecristo
Gitanes
Rizla

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.

Tobacco net revenue by brand

Tobacco Net Revenue By Brand