Imperial Tobacco Group PLC
Annual Report and Accounts 2014

A Stronger
Business

Alison Cooper
Chief Executive

Oliver Tant
Chief Financial Officer

Disclaimer: These videos supplement, but do not form part of, the Annual Report and Accounts

"In 2014, my first year as Chairman, we created further value for our shareholders and continued to build the quality and sustainability of our business. Our strategic focus on maximising sales, cost and cash opportunities enabled us to achieve our targets and further transition the business to strengthen our future growth prospects."

Mark Williamson, CA (SA)
Chairman

Mark Williamson Chairman

Who We Are

We’re an international fast-moving consumer goods company with a strong track record of creating value for shareholders.

Our core business is built around a tobacco portfolio that offers consumers comprehensive brand choice, and we’re also creating new consumer experiences through our non-tobacco subsidiary Fontem Ventures.

We’re proud of our success and excited about the future; the strength of our brands, our geographic diversity and the talents of our dynamic people are a winning combination for generating high-quality growth in the years ahead.

Brands

Our Growth Brands and Specialist Brands highlight the quality in our portfolio and have significant potential for future growth.

Brands

Markets

The strategic role that each market plays in our success story defines how it is managed, with markets prioritising either Growth or Returns.

Markets

People

Our values express what we stand for and capture the individual and collective behaviours we expect from everyone who works for us.

People

Performance Highlights

Dividends Per Share

+10%
128.1p

Adjusted Earnings Per Share1

+2%
203.4p

Tobacco Net Revenue1

+2%1
£6.6bn

Adjusted Operating Profit1

+0%
£3bn

Cash Conversion Rate

+5%
91%

Adjusted Net Debt Reduction

-11%
£1bn

Growth Brand Volumes

+7%2
£131bn

  1. Changes in our adjusted results are presented on a constant currency basis.
  2. Underlying change. See explanation in the Performance Measures table below.

Stronger Brands

We’re optimising our portfolio to focus on our Growth and Specialist Brands, which generate more than half our tobacco net revenue. Portfolio Brands either add to our revenue generation or will be migrated into Growth Brands.

Growth Brands

Our Growth Brands have broad appeal and several have been developed into total tobacco offerings, providing consumers with both cigarette and fine cut tobacco smoking experiences. We manage our Growth Brands to drive quality sustainable growth and they account for 45 per cent of our total volumes and 42 per cent of our tobacco net revenue.

Davidoff
Gauloises
L&B
P&S
News
JSP
West
USA Gold
Fine
Bastos

Specialist Brands

Our Specialist Brands are enjoyed by specific consumer groups and represent a dynamic range of cigarette, fine cut tobacco, paper, cigar and smokeless tobacco brands. These brands have a track record of generating strong returns and account for 12 per cent of our tobacco net revenue.
 

Gitanes
Cohiba
Unknown
Golden Virginia
Route 66
Montecristo
Style
Rizla
Drum
Backwoods
Skruf

Tobacco Net Revenue by Brand

Tobbaco Net Revenue by Brand

Board of Directors

Mark Williamson

Mark Williamson
Chairman of the Board

Alison Cooper

Alison Cooper
Chief Executive

Oliver Tant

Oliver Tant
Chief Financial Officer

Matthew Phillips

Matthew Phillips
Corporate Affairs Director

Ken Burnett

Ken Burnett
Non-Executive Director

David Haines

David Haines
Non-Executive Director

Michael Herlihy

Michael Herlihy
Senior Independent Director

Karen Witts

Karen Witts
Non-Executive Director

Malcolm Wyman

Malcolm Wyman
Non-Executive Director

John Downing

John Downing
Company Secretary