consumer analyst group of europe conference 2011 · 2019. 12. 16. · consumer analyst group of...
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Consumer Analyst Group of EuropeConference 2011Imperial Tobacco Group PLC
London29 March 2011
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Disclaimer
Certain statements in this presentation 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 a forward-looking statement. Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, changing economic, financial, business or other market conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described in this presentation. As a result, you are cautioned not to place any reliance on such forward-looking statements. The forward-looking statements reflect knowledge and information available at the date of announcement of the full year results and the Company undertakes no obligation to update its view of such risks and uncertainties or to update the forward-looking statements contained herein. Nothing in this presentation should be construed as a profit forecast.
This presentation does not constitute an offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities of the Company nor should it form the basis of or be relied on in connection with any contract or commitment whatsoever.
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What consumers wanta portfolio aligned with consumer trends
Alison CooperChief Executive
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Delivering sustainable shareholder returns
Delivering sustainable shareholder returns
Growth driversGrowth drivers
Cost Optimisation
Cost Optimisation
Sales GrowthSales
GrowthCash
UtilisationCash
Utilisation
ExecutionExcellenceExecutionExcellence
FutureFoundations
FutureFoundations
Our key assetsOur key assets
BrandEquityBrandEquity
TotalTobacco
TotalTobacco
MarketFootprintMarket
Footprint PeoplePeople
Consumer Centric
Consumer Centric
How we leverage our assetsHow we leverage our assets
Strategic Focus
Assets, Opportunities, Capabilities..
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in the presentation.
This is because we currently donot feature tobacco product brand
imagery on our website.
ItalyRussia
ChinaJapan
AustraliaCanada BrazilMexico TurkeyS. Korea
India(Indonesia)
NLD BeLux
TaiwanUkraine Saudi Arabia Vietnam
Switzerland
GreeceIreland
Austria, Canaries, Poland,
Czech, NZL
Denmark ThailandNigeria SwedenSerbia ArgentinaBulgaria Romania
ColombiaEgypt
Philippines
I. Coast
Azerbaijan FinlandBurkina Faso NorwaySlovenia MacedoniaSenegal MadagascarLaos Slovakia
CAR HungaryChad Hong KongCongo KosovoCyprus CambodiaGibraltar
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UK GermanyUSA SpainFrance
Morocco MalaysiaS. Africa
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Low / NoProfit
Imperial Tobacco ProfitabilityImperial Tobacco ProfitabilityHighProfit
High Profit
Low Profit
Mar
ket P
rofit
abili
ty
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Mature & Emerging Market Balancesignificant opportunities
40% FMC Volumes Mature
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40% FMC Volumes Mature 60% FMC Volumes Emerging60% FMC Volumes Emerging
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Cash Utilisation
2-3%
Sales Growth Cost Optimisation
Revenue2-4%
1-2%
Acquisition/Share buybacks
Ear
ning
s G
row
thGrowth Modeltargeting high single digit EPS growth
Currency neutral basis
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Delivering sustainable shareholder returns
Delivering sustainable shareholder returns
Growth driversGrowth drivers
Cost Optimisation
Cost Optimisation
Sales GrowthSales
GrowthCash
UtilisationCash
Utilisation
ExecutionExcellenceExecutionExcellence
FutureFoundations
FutureFoundations
Our key assetsOur key assets
BrandEquityBrandEquity
MarketFootprintMarket
Footprint PeoplePeople
Consumer Centric
Consumer Centric
How we leverage our assetsHow we leverage our assets
Strategic Focus
TotalTobacco
TotalTobacco
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AffordabilityAffordability
Modern lifestylesModern lifestyles
Value seekingValue seeking
AuthenticityAuthenticity
HeritageHeritage
New experiencesNew experiencesChanging societyChanging society
GlobalisationGlobalisation
Affordable luxury
Drivers Trends
Affordable luxury
Consumer Environmentconsumers responding to a changing world
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Trends
Consumer Environmentadditional tobacco factors
Regulation &Excise
Regulation &Excise
Value seekingValue seeking
AuthenticityAuthenticity
HeritageHeritage
New experiencesNew experiences
Affordable luxuryAffordable luxury
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Consumer Trendsvalue and luxury opportunities
ValueValue LuxuryLuxury
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Unique Total Tobacco Focus
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more consumers… more markets…more occasions
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in the presentation.
This is because we currently donot feature tobacco product brand
imagery on our website.
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Consumers Aspire to Luxury
Choice
Quality
Exclusivity
Aligned with Consumer Trends
Differentiation
Connoisseurship
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Brand Momentum– Global Visibility c.100 markets– 6% of cigarette volumes– Sustainable growth: 6% CAGR* since FY05– Share growth in 13 of top 20 markets in FY10
Brand PositioningProposition– The Ultimate Smoking Experience
Copy– The best cigarette you can buy, for smokers with
excellent taste and style
Consumers Aspire to LuxuryDavidoff
*Compound Annual Growth Rate
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Consumers Aspire to Luxury
Brand StrengthDemand shifts
– Davidoff Slims 16% 3y. CAGR (vs. global 14%)– Davidoff Lights 8% 3y. CAGR (vs. global 6%)
Improving share of ASU35– in Taiwan, Ukraine, Russia and Greece
Consistent perception & profile– category benchmark for High Quality & Style– urban, educated consumer
Source: Imperial
Davidoff
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Consumers Aspire to Luxurythe top cigar marks
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Consumers Aspire to Luxury
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in the presentation.
This is because we currently donot feature tobacco product brand
imagery on our website.
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Aligned with Consumer Trends
Affordable
Authenticity
Heritage
Trust
Smart choice
Consumers Demand Value
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Consumers Demand Value
WestThe value Brand with a Vibrant TwistSurprising Ideas – Innovative ChoiceTrustworthy; Inspiring; Vibrant; Progressive
FortunaLatin Taste for LifeCharacter EspanolPassion; Creative; Engaging; Genuine
JPSThe Smart ChoicePremium on Everything but PriceCredible; Cleverness; Stylish
Route 66Connect with New PerspectivesAmerican Freedom and ConfidenceUniting; Clever; Advancing; Freedom
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Consumers Demand Valueongoing alignment with consumers
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in the presentation.
This is because we currently donot feature tobacco product brand
imagery on our website.
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Consumers Demand Value
JPS: ongoing alignment with “international”
consumers
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Consumers Demand Value
Fortuna & Ducados Rubio responding to
local consumer trends
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Top 5 & other key FCT Markets
FY10 Market Size (bn stick
equivalents)Market size
TrendFY10
ShareImperial Position
1. Germany 35.3 #118.2%
2. UK 12.0 54.5% #1
49.3%
22.4%
32.3%
28.6%
Belgium 4.4 11.4% #2
Hungary 3.9 49.4% #1
3. Netherlands 11.1 #1
4. France 9.7 #1
5. Spain 6.2 #1
Poland 4.6 #1
Australia 2.2 59.5% #1
Imperial estimates
global leader in fine cut tobaccoConsumers Demand Value
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Consumers Demand valuealigned with changing preferences
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in the presentation.
This is because we currently donot feature tobacco product brand
imagery on our website.
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global cigar leader: value & luxury
Imperial estimates; by value
Aligned with Consumer Trends
5%
8%
10%
15%
18%
Imperial
STG JV(Proforma)
Swisher Intl.
54% Value46% Luxury 19%
Middleton
Burger Group
Agio
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Consumers Demand Valuemass market cigar
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in the presentation.
This is because we currently donot feature tobacco product brand
imagery on our website.
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What Consumers & Customers Want
TotalTobacco
TotalTobacco
Aligned assets and capabilities
Aligned assets and capabilities
ConsumerConsumer
CustomerCustomer
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Customer Alignmentwinning portfolio for the trade
The Results
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Organic Cigarette Volume Growth
Source: Company data; Volumes represent respective financial reporting years; *Compound annual growth rate
annual growth CAGR* FY05 – FY10
-0.8%
-0.5%
0.9%
-0.8
-0.6
-0.4
-0.2
0.0
0.2
0.4
0.6
0.8
1.0
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131
100
FY10FY05
West ex Germany6% CAGR* stick equivalent volumes
*Compound annual growth rate
inde
xed
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JPS21% CAGR* stick equivalent volumes
257
100
FY10FY05
*Compound annual growth rate
inde
xed
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FCT Volume Growth
40
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FY10FY07
billio
n st
ick
equi
vale
nts
5% CAGR* since FY07
*Compound annual growth rate
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Spain – Mini Cigar SegmentCoburn the clear segment leader
28.3%
3.2%
0
5
10
15
20
25
30
Dec 10
Sep 10
Jun10
Mar10
Dec 09
Oct09
Cob
urn
Sha
re o
f Min
is S
egm
ent (
%)
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Luxury Momentumstrong Davidoff and Habanos growth
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131127
113111106
100
2011YTD
FY10FY09FY08FY07FY06FY05
Davidoff volumes6% CAGR* FY05 to FY10
inde
xed
Habanos sales growth
8%
2%
2011YTD
2010
Constant currency
*Compound annual growth rate; YTD is annualised
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NS
V In
dexe
d
Imperial estimates; index takes IMT in FY05 as base; based on respective company financial reporting periods
strong Nordic snus performance
0
5
10
15
20
25IMT
BAT
JTI
FY10FY06FY05 FY09FY08FY07
Aligned with Consumer Trends
Volumes +24% in FY10
This space appears blank because we have removed the images that
appear in the presentation.
This is because we currently donot feature tobacco product brand
imagery on our website.
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Unique Total Tobacco Focus
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more consumers… more markets…more occasions
This space appears blank because we have removed the images that appear
in the presentation.
This is because we currently donot feature tobacco product brand
imagery on our website.
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Delivering sustainable shareholder returns
Delivering sustainable shareholder returns
Growth driversGrowth drivers
Cost Optimisation
Cost Optimisation
Sales GrowthSales
GrowthCash
UtilisationCash
Utilisation
ExecutionExcellenceExecutionExcellence
FutureFoundations
FutureFoundations
Our key assetsOur key assets
BrandEquityBrandEquity
TotalTobacco
TotalTobacco
MarketFootprintMarket
Footprint PeoplePeople
Consumer Centric
Consumer Centric
How we leverage our assetsHow we leverage our assets
Strategic Focus
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Consumer Analyst Group of EuropeConference 2011Imperial Tobacco Group PLC
London29 March 2011