Imperial Brands : Presentation slides

INTERIM RESULTS 2020

Imperial Brands PLC

19 May 2020

Disclaimer

Certain statements in this announcement constitute or may constitute forward-looking statements. Any statement in this announcement 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 or may be a forward-looking statement. Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected or implied in any forward-looking statement. 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 announcement. 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 this announcement 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 announcement should be construed as a profit forecast or profit estimate and no statement in this announcement should be interpreted to mean that the future earnings per share of the Company for current or future financial years will necessarily match or exceed the historical or published earnings per share of the Company.

This announcement has been prepared for, and only for the members of the Company, as a body, and no other persons. The Company, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this announcement is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed.

2 | Interim Results | 19 May 2020

Key Focus Areas

Protecting the health, safety and well-being of our people

Maintaining supply to our customers

Driving performance of the tobacco business

Right sizing NGP operations & investment

Strengthening the balance sheet

3 | Interim Results | 19 May 2020

Managing the Business During Coronavirus

Our People

• Health & wellbeing our priority
• Modified operations to ensure safety & security
• Exceptional effort from all our people - thank you
• Embracing new ways of working

Manufacturing &

Supply Chain

• Grateful to manufacturing & supply chain colleagues
• Some temporary site closures
• Ability to supply unaffected to date
• 8-10weeks finished goods

Customers &

Consumers

• H1 stockpiling, expected to reverse in H2
• Travel restrictions impact on duty free & travel retail
• Temporary net 1% increase to revenue and profit

4 | Interim Results | 19 May 2020

Focused on Strengthening Performance

Tobacco focus, NGP resized, balance sheet strengthened

Prioritising Tobacco

Rebalanced focus &

resources behind tobacco

Stronger in-market execution

Improving share positions in majority of priority markets

Strong pricing, H1 mix

pressure

Refocusing NGP	Strengthening Balance
Sheet
Focus on returns - cost	Focus on cost & cash
savings & reduced investment
	Renewed RCF & further
Lower revenue post destock	committed facilities
blu share holding up -	Sale of Premium Cigars
products are competitive	enables further deleverage
PMTA for myblu	Rebased dividend to
	accelerate debt reduction

5 | Interim Results | 19 May 2020

Progress Against our ESG Priorities

•Bringing our people safely back to their work environment

•On track to deliver against current ESG KPIs

•Some specific FY20 initiatives inevitably impacted by the coronavirus

•New KPIs being developed for priority ESG issues; implementation in FY21

6 | Interim Results | 19 May 2020

Summary Financials

	£m	% change
Tobacco volumes (SE)	114.6	-0.5%
Tobacco net revenue (£m)	3,509	0.0%
Tobacco & NGP net revenue (£m)	3,592	-1.7%
Tobacco & NGP AOP (£m)	1,383	-10.1%
Adjusted EPS (pence)	103.0	-10.9%
Cash conversion	103%
Annualised net debt movement* (£bn)	(0.1bn)

• constant currency

-0.5%

0.9%

-0.9%

-8.5%

-9.2%

7 | Interim Results | 19 May 2020

*Change in adjusted net debt before FXand changes in fair value of derivatives- full reconciliation in appendices

H1 Earnings versus Guidance

Trading upside partly COVID driven; additional NGP write-down

Year-on-Year EPS %

•Guidance was for EPS -10% (cc)

HY20

Trading

IP write-down

Actual

+2%-1%

• 2% improvement due to better trading performance

-10%-9%

•With around 1% of this driven by temporary COVID-19 benefit

•Additional write-down of NGP intellectual property

8 | Interim Results | 19 May 2020

HY20 Volumes & Price/Mix

Strong cigarette pricing partly offset by mix

Volume Movement

Drivers of Price Mix

Reflects volume recovery in

Middle East & SE Asia, market

Driven by lower sales of

-2.5%

US

decline in Australia & private

Backwoods, growth of

label sales in Germany

Australian 5thprice tier &

UK downtrading

AAA

4.0%

2.6%

6.7%

4.1%

2.7%

-3.0%

Europe

1.4%

Pricing

Market Mix

Product Mix

Reported

-0.5%

Group

Price/Mix

H120 pricing & carry over

from H219. Key drivers US,

UK, Germany & Australia

-4%

-2%

0%

2%

4%

(stock profit)

9 | Interim Results | 19 May 2020

HY20 Net Revenue

Decline in NGP revenue offsets increase in tobacco

+1.4%-1.8%

-0.5%

-0.8%

-0.9%

-1.7%

	Tobacco net	NGP net revenue
	revenue +0.9%
£3,656m	-43%

£3,625m

£3,592m

HY19	Tobacco	Tobacco	NGP net	HY20	Translation	HY20
Net Revenue	Volume	Price/Mix	revenue	constant	FX	Net Revenue
				currency

10 | Interim Results | 19 May 2020

HY20 Adjusted Operating Profit

Headwind from NGP write-downs

	Gross margin growing; decline		Lower revenue post
	predominantly driven by cost profile		destock & category
				decline offsetting
				lower costs
		-£12m
		-£95m
					+£6m
				-£23m
					-£27m

£1,620m
		US flavours £48m				£1,496m
		Other inventory £28m					£1,469m
		Impairment of IP £19m
HY19	Tobacco	NGP write		NGP	Distribution	H120	FX	H120 AOP
AOP	operating	downs	operating		constant
	income				income		currency

11 | Interim Results | 19 May 2020

Tobacco Operating Profit

Gross profit up; profit lower due to cost profile

VOLUME -0.5%

REVENUE +0.9%

GROSS PROFIT	+1.3%
OP COSTS	-7.1%
OP PROFIT	-0.7%

• A&P H1 weighted, particularly in Europe
• Overheads also proportionally greater in first half of year
• Under-recoveryof factory & supply-chain costs in cigars post temporary closure of sites in H1
• Other small increases in production cost e.g. EUTPD II track & trace

12 | Interim Results | 19 May 2020

Cash

Strong cash position H1; possible COVID impact H2

+£445m	+£238m	-£372m
	-£197m

103%

	£3,598m							£3,712m
Adjusted Operating	Working		Depreciation &		CAPEX	Pensions/Share	Adjusted Operating
	Profit	capital		Amortisation			Schemes/Other	Cashflow

• Cash conversion benefit from timing of working capital inflows
• Difficulty in forecasting H2 cash position -COVID-19 impact on working capital
• Monitoring timing of tobacco excise - key to cash flow benefit from Logista

13 | Interim Results | 19 May 2020

Liquidity

Business well capitalised; no necessary funding

• Extensive stress testing of business liquidity requirements
• Specifically addressed uncertainty surroundingCOVID-19
• Strengthened committed financing position with RCF & additional bilateral facilities
• Business well capitalised & credit rating recently reconfirmed
• No necessary funding requirements

Sources of Liquidity

Strong cash conversion

> 90%

Logista cash-pooling

£1bn - £2bn

M&A Proceeds

£1bn

Additional bi-laterals

£1.7bn

14 | Interim Results | 19 May 2020

Sale of Premium Cigars Division

Cash proceeds to reduce debt

• Sale of Premium Cigars at multiple equivalent to 11.8x EBITDA
• Part of active focus on capital management
• Expect proceeds during Q3 of FY20
• Proceeds to accelerate deleverage; 0.2x net debt to EBITDA
• Minimal earnings dilution (c.6 pence annualised)
• Impairment partially offset by gain in FX reserves on completion

15 | Interim Results | 19 May 2020

Rebalancing Shareholder Returns & De-leverage

Dividend rebased by a third to strengthen balance sheet

• Prioritise debt reduction; supports resilient balance sheet
• Rebasing dividend by one third; progressive thereafter
• Funds to accelerate deleverage; target low end of range
• Continuing to invest in business; prioritising tobacco
• Stronger balance sheet builds future flexibility

Accelerate deleverage

to low end of 2 - 2.5x range

protect investment grade

credit rating

Progressive dividend growth

from FY20 rebased level

reflecting underlying business performance

Surplus cash returns to

shareholders

on achieving leverage target

16 | Interim Results | 19 May 2020

Outlook for FY20

Reflecting impact of COVID-19

• Current analyst consensus-2% EPS (constant currency)
• COVID-19factors - estimated low single digit EPS impact
• • Restrictions tocross-border & international travel
  • Changing patterns of consumer behaviour e.g. downtrading
  • Impact of reduced cigar manufacturing capacity
• Additional-1% dilution from Premium Cigar sale & IP asset write-down
• Revised FY expectations: EPS (cc)-3%plus COVID impact
• Neutral FX translation impact on EPS based on current rates*

17 | Interim Results | 19 May 2020

* Based on closing rates at 17.05.20 - USD 1.211; EUR 1.121; AUD 1.880

Americas: Continued tobacco market share growth

Strong pricing offset by cigar mix & NGP write-down

Market	+10bps	Tob. Net	flat
Share	Revenue

Tobacco
Winston marketing campaign	Targeted consumer marketing
supports share position	has grown Kool's share

NGP
Reset of investment levels	PMTA submitted for myblu & range
& market de-stock	of pod flavours & nic strengths
18 | Interim Results | 19 May 2020

NGP Net	-50.8%	Adj. EBIT*	-11.8%
Revenue
		excl. NGP write down*	+1.4%

• • Further share growth; focus brands offsetting tail
  • Strong cigarette revenue offset by Backwoods; natural wrapper supply & increased competition
  • Rebalanced sales team priorities from vapour to tobacco
  • Vapour revenue impacted byde-stock and sector slowdown
  • Underlying profit in growth excludingwrite-down of flavoured inventory & asset impairment
• Adj. EBIT includes NGP impact of £58m from inventorywrite-down & asset impairment

1. Share Growth in Priority MarketsGrowing tobacco & NGP revenues

Market	+70bps	Tob. Net	2.9%
Share	Revenue

NGP Net	57.1%	Adj. EBIT	-7.9%
Revenue
		excl. NGP write down*	-5.5%

Tobacco	Parker & Simpson
	continuing to gain
	share traction

NGP

Japan national

convenience store roll-out

19 | Interim Results | 19 May 2020

Davidoff range expansions meet demand for King & Queen size variants

Continued investment behind nic-free in Japan

• • Market share growth in all priority markets
  • P&S growing in Australiansub-value; market also benefiting from stock profit phasing
  • Strong growth in Middle East from normalisation of shipment timings, though low value
  • NGP revenues driven by growth in Japan
  • EBIT impacted by full year of Pulze investment & geographic mix
• Adj. EBIT excludes NGP impact of £8m from inventorywrite-down & asset impairment

Priority Market Performance

Share gains across the region driven by tobacco portfolio

MAT YTD

share share

+10bps +2bps

+40bps +60bps

+20bps +10bps

+30bps +30bps

+470bps +440bps

Gains in discount segment and improving position for Winston & Kool; market size improvement

Increasing share of P&S in growing 5thprice tier; illicit growth drives decline in duty paid

West growing with consumer demand shift to value segment

Davidoff and West gains driven by supporting key account activity

Optimisation of field coverage is delivering strong sales of Davidoff Evolve and West

20 | Interim Results | 19 May 2020

Europe: Focus on Tobacco Delivery

Underlying tobacco results offset by NGP

Market

Share

Tobacco

-50bps	Tob. Net	0.5%	NGP Net	-56.2%	Adj. EBIT	-6.7%
Revenue	Revenue
					excl. NGP write down*	-3.0%
West sales have			•Improved share positions in several key markets;
benefited from			UK, Spain & France
growth in value
segment	JPS performance benefits	•Volume benefit from COVID-19 inventory build &
	from larger format product	growth in private label volumes
	offerings

Investment reset

& marketde-stockmyblu share reslience in many markets

NGP

Further modern oral

expansion

• Carry-overof H219 pricing offsets lower duty free & travel retail sales
• De-stock& category slowdown impacts NGP revenue; lower gross margin offsets reduced costs
• Profit impacted by NGP & phasing of tobacco costs

21 | Interim Results | 19 May 2020

*Adj. EBIT excludes NGP impact of £29m from inventory write-down & asset impairment

Priority Market Performance

Balancing share with financial returns

MAT YTD

share share

-160bps-130bps

-100bps-120bps

-50bps-25bps

+10bps +1bp

+10bps +5bps

Larger value offerings & FMC branded RYO support sequential share improvement

Continuing to reshape portfolio around demand shifts to address share decline

Price repositioning of News & Gauloises & focus on meeting increased demand from border closures

Blonde share growth offsets drag from dark tobacco. Investment behind larger value formats across portfolio

JPS range continuing to benefit from consumer demand for value

22 | Interim Results | 19 May 2020

Focused on Strengthening Performance

Disappointing results; progress towards stronger business

Continuing to deliver while protecting our people

Tobacco share growth at group level and in 7/10 priority markets Right-sized NGP to enhance returns; PMTA submissions for myblu Rebased dividend; supports balance sheet resilience & flexibility Agreed sale of Premium Cigars - proceeds to reduce debt

23 | Interim Results | 19 May 2020

INTERIM RESULTS 2020

Imperial Brands PLC

19 May 2020

Appendices

Group financials

25 | Interim Results | 19 May 2020

Group Adjusted Results

					Constant
				Foreign	Currency			Constant
			HY19	Exchange	Growth	HY20	Actual ∆	Currency ∆
	Tobacco net revenue	£m	3,508	(32)	33	3,509	0.0%	0.9%
	NGP net revenue	£m	148	(1)	(64)	83	-43.9%	-43.2%
	Tobacco & NGP Operating profit	£m	1,538	(25)	(130)	1,383	-10.1%	-8.5%
	Tobacco & NGP Profit Margin	%	42.1			38.5	-360bps	-330bps
	Logistics distribution fees	£m	499	(10)	(1)	488	-2.2%	-0.2%
	Logistics operating profit	£m	102	(2)	(5)	95	-6.9%	-4.9%
	Logistics margin	%	20.4			19.5	-90bps	-90bps
	Eliminations	£m	(20)	-	11	(9)	-55.0%	-55.0%
	Group adjusted operating profit	£m	1,620	(27)	(124)	1,469	-9.3%	-7.7%

26 | Interim Results | 19 May 2020

Group Adjusted Results

			HY20	HY19
	Group adjusted operating profit	£m	1,469	1,620
	Adjusted net finance costs	£m	(210)	(220)
	Share of profit of JVs	£m	20	24
	Adjusted profit before tax	£m	1,279	1,424
	Adjusted tax rate	%	20.7	19.5
	Adjusted EPS	pence	103.0	115.6
	DPS	pence	41.7	62.6
	Cash conversion	%	103	66
	Adjusted net debt	£m	(13,476)	(12,958)

27 | Interim Results | 19 May 2020

Reconciliation: Reported To Adjusted

										Adjustments
				Acquisition		Fair value	Fair value	Post		attributable
£m (unless	Reported	Amortisation		and	Excise	adjustment (gains)/losses	employment	Tax on	to non-	Adjusted
of acquired	Restructuring	disposal	tax	of loan	on financial	net financing	unrecognised	controlling
otherwise stated)	HY20	intangibles	costs	costs provision	receivable	instruments	cost	losses	interests	HY20
Operating profit	925	436	94	14	(23)	23	-	-	-	-	1,469
Share of profit of JV	20	-	-	-	-	-	-	-	-	-	20
Finance costs	(160)	-	-	-			(53)	3	-	-	(210)
Profit before tax	785	436	94	14	(23)	23	(53)	3	-	-	1,279
Tax	(235)	(19)	(24)	-	-	(7)	48	(2)	(26)	-	(265)
Profit after tax	550	417	70	14	(23)	16	(5)	1	(26)	-	1,014
Minority interest	(25)	-	-	-	-	-	-	-	-	(16)	(41)
Earnings
attributable to	525	417	70	14	(23)	16	(5)	1	(26)	(16)	973
equity shareholders
Basic EPS (pence)	55.6	44.1	7.4	1.5	(2.4)	1.7	(0.5)	0.1	(2.8)	(1.7)	103.0

28 | Interim Results | 19 May 2020

Income Statement

	£m (unless otherwise stated)	HY20	HY19
	Revenue	14,672	14,390
	Adjusted operating profit	1,469	1,620
	Acquisition and disposal costs	(14)	-
	Amortisation and impairment of acquired intangibles	(436)	(297)
	Restructuring costs	(94)	(54)
	Excise tax provision	23	-
	Fair value adjustment of acquisition consideration - Von Erl	-	(119)
	Fair value adjustment of loan receivable	(23)	-
	Share of profit of investments accounted for using the equity method	20	24
	Net finance costs*	(160)	(156)
	Profit before tax	785	1,018
	Tax	(235)	(310)
	Profit after tax	550	708
	Minority interests	(25)	(29)
	Basic EPS (pence)	55.6	71.2
	Adjusted EPS (pence)	103.0	115.6

29 | Interim Results | 19 May 2020

*Including net fair value and exchange gains/losses on financial instruments and post-employment benefits net financing costs

Balance Sheet

	£m		HY20	HY19
	Non-current assets: tangible	4,911	4,360
		intangible	18,246	18,428
	Current assets:	inventories	5,101	4,071
		other	4,984	3,703
	Current liabilities		(13,364)	(11,433)
	Non-current liabilities	(14,986)	(13,603)
	Net assets		4,892	5,526

30 | Interim Results | 19 May 2020

Cash Flow

	£m	HY20	HY19
	Cash flows from operating activities pre tax	381	196
	Tax paid	(254)	(248)
	Cash flows from operating activities	127	(52)
	Net capex	(165)	(145)
	Purchase of businesses / brands	(146)	-
	Repurchase of shares	(92)	-
	Lease liabilities paid	(37)	-
	Loan to JV	-	4
	Dividends paid (inc. minority interests)	(1,418)	(1,306)
	Net interest paid	(312)	(304)
	Net cash flow	(2,043)	(1,803)
	Opening net debt	(11,970)	(11,899)
	Closing net debt before non-cash movements	(14,013)	(13,702)
	Non-cash movements
	Exchange movement	(36)	344
	Interest accretion and derivative fair value adjustments	240	(23)
	Lease liabilities - adoption of IFRS16	(302)	-
	Transferred to assets held for disposal	(33)	-
	Closing net debt after non-cash adjustments	(14,144)	(13,381)

31 | Interim Results | 19 May 2020

Net Debt Movement

12 months: HY19 to HY20

	-£3.8bn						+£2.0bn		+£0.6bn
				+£0.4bn	+£1.0bn	+£0.3bn
		+£0.4bn	-£0.4bn
£13.0bn								£12.9bn		£13.5bn
HY19	EBITDA	Purchase of	Working	Net	Tax &	Restructuring,	Dividends	Adjusted	Foreign	HY20
Closing		business /	capital	capex	interest	pensions		net debt	exchange &	Closing
adjusted		repurchase of				& other			derivatives*	adjusted
net debt		shares								net debt

32 | Interim Results | 19 May 2020

* Includes assets transferred to held for disposal

Net Debt Reconciliation

		Reported	Accrued	Fair value of	Adoption of	Adjusted
	£m	HY20	interest	derivatives	IFRS16	HY20
	Opening net debt	(11,970)	162	432	-	(11,376)
	Free cash flow	(588)	-	-	-	(588)
	Dividends	(1,418)	-	-	-	(1,418)
	Lease liabilities paid	(37)	-	-	-	(37)
	Accretion of interest	109	(109)	-	-	-
	Change in fair values	131	-	(119)		12
	Lease liabilities - adoption of IFRS16	(302)	-	-	302	-
	Exchange movements	(36)	-	-	-	(36)
	Transferred to assets held for disposal	(33)	-	-	-	(33)
	Closing net debt	(14,144)	53	313	302	(13,476)

33 | Interim Results | 19 May 2020

Cash Conversion

12 months: HY19 to HY20

+£445m	+£238m	-£372m

-£197m

103%

	£3,598m	£3,712m

Adjusted Operating	Working	Depreciation &	CAPEX	Pensions/Share	Adjusted Operating
Profit	capital	Amortisation		Schemes/	Cashflow
				Other

34 | Interim Results | 19 May 2020

12 Month Cash Conversion

	£m (unless otherwise stated)	HY20	HY19
	Net cash flow from operating activities	3,415	2,144
	Tax	528	395
	Net capex	(372)	(248)
	Restructuring cash spend	141	178
	Cash flow post capex pre interest and tax	3,712	2,469
	Adjusted operating profit	3,598	3,762
	Cash conversion (%)	103	66
	Working capital inflow/(outflow)	445	(1,180)

35 | Interim Results | 19 May 2020

Net Finance Costs

	£m	HY20	HY19
	Net finance costs	160	156
	Adjusted for:
	- interest income on net defined benefit assets	49	70
	- interest cost on net defined benefit liabilities	(52)	(73)
	- fair value & exchange gains on financial instruments	53	67
	Adjusted net finance costs	210	220

36 | Interim Results | 19 May 2020

Foreign Exchange

		Average
	HY19	HY20	∆
USD $	1.294	1.284	-1%
EURO €	1.137	1.162	2%
AUD $	1.811	1.915	6%
Russian Rouble	85.769	83.689	-2%

	Closing
HY19	HY20	∆
1.309	1.236	-6%
1.165	1.128	-3%
1.843	2.027	10%
84.885	96.964	14%

37 | Interim Results | 19 May 2020

Foreign Currency

Divisional currency exposure

Approximateweight of
currency in Tobacco Net	GBP	EUR / EUR	USD	AUD	Other
Revenue	£	Linked	$	$	Currencies	Other includes
Europe	15%	70%			15%	Polish Zloty
Americas			100%
AAA		25%	20%	20%	35%	Russian Rouble, Taiwan $ &
	Moroccan Dirham
Approximateweight of	GBP	EUR / EUR	USD	AUD	Other
currency inOperating Profit	£	Linked	$	$	Currencies	Other includes
Europe	25%	75%
Americas			100%
AAA		40%		45%	15%	Taiwan $ & Moroccan
		Dirham
Logistics		100%

€0.01 (1 cent) movement in the € Euro has c. £24m impact on net revenue.

$0.01 (1 cent) movement in the $ USD has a c. £23m impact on net revenue.

€0.01 (1 cent) movement in the € Euro has a c. £14m impact on PBT.

$0.01 (1 cent) movement in the $ USD has a c. £9m impact on PBT

38 | Interim Results | 19 May 2020

Percentages provided are broad guidance only. They are not definitive numbers

Guidance FY20

Other financial items

Financing & Cost of Debt

• Averageall-in net P&L finance charge broadly similar to last year

Tax Rate

• c.21% expected for FY20

Cash Conversion

• Expect to be c.90%

Capex

• Net capex for FY20 c.£0.3bn

Cost Optimisation

• FY20 savings expected c.£60m
• Cash costs of restructuring expected of c.£0.2bn

Foreign Exchange

• Translation FX expected to be a neutral impact
• Based on exchange rates at the 18thMay 2020 of GBP: EUR 1.12 and GBP: USD 1.21

39 | Interim Results | 19 May 2020

Financial profile

31 March 2020

Interest Split

Currency Split

Debt Split

40%

Fixed

27%

8%

Bonds

EUR

18%

Floating

USD

Bank

ECP

60%

18,000

73%

74%

16,000

ECP

equivalent

14,000

12,000

Bank Facilities

10,000

8,000

6,000

£m

£3.1bn headroom against facilities

4,000

2,000

-

Mar '21

Mar '22

Mar '24

Mar '26

Mar '27

Mar '29

Mar '30

Mar '31

Mar '32

Mar '20

Mar '23

Mar '25

Mar '28

40 | Interim Results | 19 May 2020

Committed bank facilities

31 March 2020

Description	Maturity date	Amount	£m equiv.
Committed 3-year Revolving Credit Facility
EUR tranche	30 Mar 2023	€3,500m	£3,102m
Committed revolving credit facility	31 Oct 2021	€300m	£266m
Committed revolving credit facility	31 Oct 2021	€300m	£266m
Total			£3,634m

* In April 2020 additional financing was arranged of 4 committed bilateral facilities totalling €1,100m (£975m)

41 | Interim Results | 19 May 2020

Bond issues

31 March 2020

	Amount	Issuer	Coupon	Issue Date	Maturity Date	£m equiv.	Margin
	$1,250m	Imperial Brands Finance PLC	2.950%	Jul-15	Jul-20	£1,011m	1.4%
	€1,000m	Imperial Brands Finance PLC	2.250%	Feb-14	Feb-21	£886m	1.1%
	€500m	Imperial Brands Finance PLC	0.500%	Jan-17	Jul-21	£443m	0.7%
	£1,000m	Imperial Brands Finance PLC	9.000%	Feb-09	Feb-22	£1,057m1	4.8%1
	$1,250m	Imperial Brands Finance PLC	3.750%	Jul-15	Jul-22	£1,011m	1.8%
	$1,000m	Imperial Brands Finance PLC	3.500%	Feb-13	Feb-23	£809m	1.1%
	€750m	Imperial Brands Finance PLC	1.125%	Feb-19	Aug-23	£665m	1.2%
	£600m	Imperial Brands Finance PLC	8.125%	Sep-08	Mar-24	£684m	3.1%1
	$1,000m	Imperial Brands Finance PLC	3.125%	Jul-19	Jul-24	£796m1	1.2%1
	€500m	Imperial Brands Finance PLC	1.375%	Jan-17	Jan-25	£443m	1.0%
	$1,500m	Imperial Brands Finance PLC	4.250%	Jul-15	Jul-25	£1,214m	2.2%
	€650m	Imperial Brands Finance PLC	3.750%	Feb-14	Feb-26	£576m	1.5%
	$750m	Imperial Brands Finance PLC	3.500%	Jul-19	Jul-26	£597m1	1.5%1
	£500m	Imperial Brands Finance PLC	5.500%	Sep-11	Sep-26	£570m	2.7%1
	€750m	Imperial Brands Finance PLC	2.125%	Feb-19	Feb-27	£665m	1.8%
	$1,000m	Imperial Brands Finance PLC	3.875%	Jul-19	Jul-29	£809m1	2.0%1
	£500m	Imperial Brands Finance PLC	4.875%	Feb-14	Jun-32	£556m1	2.1%1
		Total/Weighted Average Margin				£12,792m1	1.9%1

42 | Interim Results | 19 May 2020

1Including the effect of cross currency swaps

Divisional Market Share

MAT market share data

	HY20	HY19	
Europe	19.3%	19.8%R	-50bps
Americas	8.8%	8.7%	+10bps
AAA	10.2%	9.6%R	+60bps
Total Group	13.5%	13.3%R	+20bps

Market Share Calculation

Market share is presented as a 12 month average (MAT). Aggregate market share is a weighted average across markets within our footprint. The sources of market share information by market are continually reviewed to ensure the most accurate data available. Where any changes have been made we have restated (as denoted R) the PY number to ensure comparability

43 | Interim Results | 19 May 2020

Glossary

	SE	Stick Equivalent (SE) volumes reflect our combined cigarette, fine cut tobacco, cigar and snus volumes.
	Constant Currency	Change at constant currency removes the effect of exchange rate movements on the translation of the
	results of our overseas operations.
	Tobacco	Total Tobacco includes cigarettes, fine cut tobacco, cigar, traditional snus and other tobacco products.
	NGP	NGP includes vapour products, next generation oral nicotine including all-white oral snus
	Fontem Ventures	Fontem Ventures is our non-tobacco subsidiary focused on developing new opportunities for sustainable
	revenue growth.
		Logista is a 50.01% owned subsidiary and publicly listed on the Spanish stock exchanges. It is one of the
	Logista	largest logistics businesses in Europe, with operations extending across Spain, France, Italy, Portugal and
		Poland.

44 | Interim Results | 19 May 2020

Asset Brands

Asset Brands	Asset Brands*
	We continue to reshape our brand
	portfolio, prioritising our high-
	quality Asset Brands to drive
	growth.

Portfolio Brands

The remainder of our portfolio consists of local and regional brands.

• Asset Brands have been amended to reflect
• • the reclassification of our premium cigar brands, Cohiba, Montecristo and Romeo y Julietta and cigarette brands, Bastos and Style as Portfolio Brands
  • the inclusion of fine cut tobacco brand, Riverstone, and NGP brands, Pulze, iD and Zone X

Excluding these changes HY20 Asset Brand percentage of total net revenue would have been 65.5%; +1.8% higher than the reported 63.7%

45 | Interim Results | 19 May 2020

HALF YEAR RESULTS 2020

Imperial Brands PLC

19 May 2020