WHY INVEST IN IMPERIAL BRANDS?

We are delivering quality growth from tobacco and additive growth from Next Generation Products (NGP). Our ways of working are efficient and cost effective and we take a rigorous approach to capital discipline and cash generation. Everything we do is underpinned by high standards of governance and a robust sustainability strategy.

  

QUALITY GROWTH FROM TOBACCO

Investing for quality growth

Imperial Brands has an attractive portfolio of brands and markets to deliver long-term profitable growth.

The successful implementation of our strategy prioritises investment behind our Market Repeatable Model in those markets and products that offer the best returns.

Over many years we have developed a proven track record of achieving strong price/mix growth to offset industry volume declines and enhance profitability.

SIGNIFICANT ADDITIVE GROWTH OPPORTUNITY FROM NGP

Creating something better

In creating something better for the world’s smokers we are encouraging smokers to switch to less harmful NGP.

In doing so, we are considerably enhancing our revenue delivery and view NGP as a significant additive growth opportunity for Imperial Brands, given our low global cigarette market share.

We have assembled a strong NGP portfolio, built around our blu vapour brand. This, combined with excellence in science and innovation, positions us well to deliver accelerated growth in the years ahead.

  

NEW WAYS OF WORKING DRIVING COST EFFICIENCIES

Simplification and cost efficiencies create value

The changes we are making to our ways of working have created a business that is better equipped to deliver quality growth in both tobacco and NGP.

Our focus on business simplification and complexity reduction is enabling us to drive cost efficiencies and improve agility.

RESPONSIBLE BEHAVIOUR

Strong governance and sustainability agenda

We recognise some of our products are controversial but the way we operate is not.

High standards of governance are integral to our long-term success and we ensure the business is governed and managed in an open and transparent manner at all times.

We have a sustainability strategy that is fully aligned with our commercial objectives and enables the business to grow and create value.

  

CAPITAL DISCIPLINE AND CASH GENERATION

Rigorous capital allocation and strong cash generation

Our business generates strong cash flows as a result of our intrinsically high operating profit margins, coupled with our ability to convert a substantial proportion of profits to cash.

Although NGP may initially dilute margins we expect to see profitability improve over time.

To sharpen our focus on the brands, products and markets that are core to our strategy, we are divesting assets that are less central to our strategic agenda.

SUSTAINABLE SHAREHOLDER RETURNS

Progressive dividend growth

In July 2019 we announced a change to our shareholder distributions policy as part of a wider review of our capital allocation priorities which support continued investment in business growth, funded by a strong but efficient balance sheet.

For the current financial year ending 30 September 2019 we reaffirmed that the dividend will grow by 10%. Thereafter the dividend will be progressive, growing annually from the current level, taking into account underlying business performance. 

The revised policy recognises the Company's continued strong cash generation and the importance of growing dividends for shareholders, while providing greater flexibility in capital allocation.