INTERIM RESULTS July 2016

Transcription

1 28 July 2016

2 Nicandro Durante Chief Executive

3 Strong performance driven by organic growth Strong top-line growth volume and revenue Excellent corporate and GDB share growth continues Benefits from 2015 M&A Continued delivery of HSF EPS growth Commitment to shareholder returns

4 Ben Stevens Finance Director

5 Summary Financials Volume Current Constant Revenue 6,669m 4.2% 7.8% Cigarettes 332bn 3.4% Profit 2,452m -2.2% 1.8% Total Tobacco 344bn 3.1% Margin 36.8% -240bp -220bp GDBs 157bn 10.8% EPS 111.1p 10.9% 13.4% Total IBs 209bn 5.6% A strong organic performance

6 Currency impact on Operating Profit H actual FY 2016 estimate Transactional at constant FX -6% -6% Translational -4% +4% Translational FX turning Transactional FX headwinds continue

7 Operating margin 50 bps 39.7% -220 bps 39.2% 37.5% -70 bps 36.8% 2015 HY Reported Margin Underlying improvement 2016 HY Underlying Margin Transactional FX 2016 HY Likefor-like Margin Organic adjustments 2016 HY Reported Margin

8 Asia Pacific Regional Performance Financials Volume Constant Current Revenue 1,923m Cigarettes 1.5% 4.9% 2.0% 105bn Profit 756m -2.7% -2.0% GDBs 44bn -0.2% Profit Ex transactional FX 4%

9 Americas Regional Performance Financials Volume Constant Current Revenue 1,527m 10.4% -6.3% Cigarettes 56bn -6.6% Profit 618m 10.9% -0.6% -13.7% GDBs 20bn 14.4% Profit Ex transactional FX 3%

10 Western Europe Regional Performance Financials Volume Constant Current Revenue 1,643m 12.3% 16% 18.2% Cigarettes 57bn 11.0% Profit 559m 7.6% 13.8% GDBs 35bn 10.7% Profit Ex transactional FX 9%

11 EEMEA Regional Performance Financials Volume Constant Current Revenue 1,807m 9.0% -0.1% Cigarettes 114bn 6.6% Profit 618m 4.9% -4.2% GDBs 58bn 19.3% Profit Ex transactional FX 17%

12 Drivers of adjusted EPS growth +3.4p 113.6p -2.5p +8.6p +0.8p 111.1p +1.6p -1.0p 100.2p EPS H Profit Performance Net Finance Costs Associates Taxation Non-controlling interest EPS H constant FX Exchange EPS H reported

13 Cash flow 194m 1,017m 126m 40m 276m 2,452m 620m 94m 238m 324m 559m Adj operating profit Non cash items Working Capital chg Net Capex Pension fds - s'fall funding Net interest Tax Dividends to NCI Restructuring Div from associates Free cash flow

14 Financing/Shareholder returns Net Debt increased by 2.9bn to 17.7bn, 1.2bn driven by FX Moody s and S&P credit rating unchanged at A3 / A- stable Interim dividend increase of 4% (1/3 of 2015 FY dividend)

15 Nicandro Durante Chief Executive

16 Strategy continues to deliver

17 Volume: 28 billion, +3.4% Share up <10bps YR CAGR: 6.6% th consecutive year of growth Number 1 international brand in Indonesia Volume grew, driven by Indonesia and South Korea Record 6.4% share in Romania H1 H

18 Volume: 33 billion, +6.8% Share up 10bps YR CAGR: 5.4% Volume grew, driven by Japan, Russia and Turkey Turkey - Kent Switch doubled its market share Japan Kent driving 3 consecutive years of corporate share growth Kent Spark launch of new brand imagery H1 H

19 Volume: 17 billion, +13.0% Share up 10bps YR CAGR: 3.7% Excellent volume growth of 13%, driven by the Black Series Strong performance in South America Record shares in Chile, Colombia and France Fastest growing brand in France since H1 H

20 Volume: 47 billion, -1.0% Share up 10bps YR CAGR: 12.3% Good organic volume in key markets, offset by industry contraction in Pakistan Share growth in Pakistan, Mexico and Romania Biggest brand in Venezuela Pall Mall Extra Cut driving share growth in Romania H1 H

21 Volume: 33 billion, +48.8% Share up 50bps YR CAGR: 15.3% Fastest growing international brand in the industry Record share in Turkey Australia 17.9%, highest brand share globally Italy successful migration H1 H

22 NGPs to satisfy consumer needs

23 NGPs to satisfy consumer needs

24 Strategy continues to deliver Volume & Share growth in opportunity markets M&A benefits Margin opportunity

25 2016 H1 A GOOD START TO THE YEAR Volume Share Financials VOLUME CORPORATE SHARE REVENUE PROFIT EPS +3.4% +30bps GDB VOLUME GDB SHARE +8% +8% +19% +10.8% +80bps constant currency constant currency ex transactional fx constant currency ex transactional fx Confident of another good year of constant currency earnings growth

26 28 July 2016

27 Cigarette volumes by region HY 2016 Region Billions % change Asia Pacific % Americas % Western Europe % Eastern Europe, Middle East and Africa % Group %

28 Cigarette volumes by region Q Region Billions % change Asia Pacific % Americas % Western Europe % Eastern Europe, Middle East and Africa % Group %

29 Revenue by region HY 2016 Region m % change Asia Pacific 1,987 1, % Americas 1,297 1, % Western Europe 1,729 1, % Eastern Europe, Middle East and Africa 1,656 1, % Group 6,669 6, % All numbers as reported

30 Adjusted profit from operations HY 2016 Region m % change Asia Pacific % Americas % Western Europe % Eastern Europe, Middle East and Africa % Group 2,452 2, % All numbers as reported

31 Foreign currencies Average Closing Australian dollar Brazilian real Canadian dollar Euro Indian rupee Japanese yen Russian rouble South African rand US dollar