MINDSET | ||||
ACCOUNTS | 2022 | |||
AND | ||||
REPORT | ||||
ANNUAL | ||||
For more information please see
www.imperialbrandsplc.com
MEET OUR PEOPLE
Anna
Executive Assistant, Ivory Coast | Cover |
Maite and Álvaro | |
Supply Chain Manager | |
and Finance Controller, Spain | 1 |
Shradha | |
ESG Executive, UK | 1 |
Oleksandr | |
Production Mechanic, Ukraine | 3 |
Juan José | |
Quality Specialist, Spain | 11 |
Maria | |
Brand Manager, Spain | 12 |
Elara | |
Retail Representative, UK | 15 |
Debbie | |
Marketing Services Manager, US | 15 |
Marie-Louise | |
People & Culture Business Partner, | |
Ivory Coast | 16 |
CONTENTS
STRATEGIC REPORT
At a Glance | 2 |
Chair's Statement | 4 |
Chief Executive's Statement | 6 |
Our Distinct Approach | 10 |
Transformation in Action | 12 |
Our Investment Case | 26 |
KPIs | 28 |
Stakeholder Engagement | 30 |
Non-Financial | |
Information Statement | 35 |
ESG Review | 36 |
TCFD | 59 |
Operating Review | 66 |
Financial Review | 73 |
Principal Risks | |
and Uncertainties | 82 |
GOVERNANCE
Chair's Introduction | 94 |
Board Leadership | 96 |
Section 172 | 108 |
Board Statements | 112 |
People and | |
Governance Committee | 113 |
Audit Committee | 119 |
Remuneration Report | 130 |
Directors' Report | 149 |
Sandhya
Consumer Experience Manager, UAE | 17 |
María | |
Sales Representative, Spain | 18 |
Raúl | |
Production Mechanic, Spain | 21 |
Grzegorz | |
Learning & Development Coordinator, | |
Poland | 21 |
Matthew | |
QC Analyst, UK | 22 |
Katrina and Mohamad | |
Manufacturing Excellence Manager | |
and Production Operator, Sweden | 24 |
Andrea | |
Trade Marketing Analyst, Spain | 25 |
Oleksii | |
Production Operator, Ukraine | 27 |
Jodi | |
Laboratory Manager, UK | 38 |
FINANCIALS
Independent Auditors' Report | 156 |
Consolidated Income Statement | 166 |
Consolidated Statement | |
of Comprehensive Income | 166 |
Consolidated Balance Sheet | 167 |
Consolidated Statement | |
of Changes in Equity | 168 |
Consolidated Cash | |
Flow Statement | 169 |
Notes to the Consolidated | |
Financial Statements | 170 |
SUPPLEMENTARY
INFORMATION
Adjusted Performance Measures | 221 |
Glossary | 229 |
IMPERIAL BRANDS PLC
FINANCIALS
Imperial Brands PLC | |
Balance Sheet | 230 |
Imperial Brands PLC Statement | |
of Changes in Equity | 230 |
Notes to the Financial Statements | |
of Imperial Brands PLC | 231 |
SHAREHOLDER
INFORMATION
Shareholder Information | 245 |
Jenny
Production Engineer, Sweden | 43 |
Daniel | |
Trade Marketing Manager, Sweden | 44 |
Ralf | |
Factory Operator, Germany | 50 |
Fernando | |
Human Rights Manager, UK | 51 |
Adam | |
Process Engineer Specialist, UK | 53 |
Joshua | |
Data Scientist, Poland | 56 |
Alona | |
Retail Development Representative, UK | 58 |
ARE | challenger, | out | |||||||||
. | |||||||||||
WE | more | ||||||||||
strongbusiness | year | ||||||||||
year | in, | ||||||||||
a | a | ||||||||||
building | |||||||||||
becoming | growth | ||||||||||
By | are | of | |||||||||
capable | |||||||||||
we |
www.imperialbrandsplc.com 1
IMPERIAL BRANDS AT A GLANCE
DELIVERING ON OUR STRATEGY
WE HAVE A CLEAR STRATEGY TO BECOME A STRONG CHALLENGER…
STRATEGIC PILLARS
Pages 14-19
ING V | |||||||||||||||||||||||||||||||||||||||||
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D | R | BR | E | ||||||||||||||||||||||||||||||||||||||
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S | I | O | T | B | E | D | |||||||||||||||||||||||||||||||||||
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C | P | R | I | G | |||||||||||||||||||||||||||||||||||||
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H N | D | T | |||||||||||||||||||||||||||||||||||||||
T O | E | N | |||||||||||||||||||||||||||||||||||||||
T | E | ||||||||||||||||||||||||||||||||||||||||
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E C U | F | ||||||||||||||||||||||||||||||||||||||||
S | I | N | |||||||||||||||||||||||||||||||||||||||
BE M | L | I | C | ||||||||||||||||||||||||||||||||||||||
N E | P | I | O | ||||||||||||||||||||||||||||||||||||||
S | F | F | I | ||||||||||||||||||||||||||||||||||||||
T | R | IM | E | T | |||||||||||||||||||||||||||||||||||||
I R | A | ||||||||||||||||||||||||||||||||||||||||
U | A | ||||||||||||||||||||||||||||||||||||||||
N E | T | S | N | D | E | R | |||||||||||||||||||||||||||||||||||
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S | F | P | E | A | |||||||||||||||||||||||||||||||||||||
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- | FORMA | E | |||||||||||||||||||||||||||||||||||||||
B | AS | R | |||||||||||||||||||||||||||||||||||||||
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A | N | ED CULT | S | ||||||||||||||||||||||||||||||||||||||
D | IE | ||||||||||||||||||||||||||||||||||||||||
IT | |||||||||||||||||||||||||||||||||||||||||
CAPABIL |
CRITICAL ENABLERS
Pages 20-25
The five-year strategy we launched in January 2021 was the roadmap for our transformation. Since then we have been building the foundations for future success - and we are now on track to move to the next phase of delivery.
WHICH WE ARE ROLLING
OUT WITH DISCIPLINE…
PHASE 1: BUILDING
FOUNDATIONS
Five-year | ||||||||||||
strategy | ||||||||||||
launched | ||||||||||||
Top five | ||||||||||||
aggregate | ||||||||||||
market share | Exit of | |||||||||||
stabilised | ||||||||||||
Russia | ||||||||||||
completed | ||||||||||||
Jan 2021 | Sept 2021 | |||||||||||
Efficiency | Purpose, | |||||||||||
programme | vision and | |||||||||||
begins | behaviours | |||||||||||
launched | ||||||||||||
New | Refresh | |||||||||||
New Global | ||||||||||||
Consumer Office | management | of ESG | ||||||||||
established | team in place | strategy | ||||||||||
OUR FINANCIAL
PERFORMANCE
Tobacco & | Adjusted EPS | |
NGP net revenue | 265.2p | |
£7.8 bn | +4.9%* | |
+1.5%* | ||
Reported EPS | Dividend per share | |
165.9p | 141.17p | |
-44.7% | +1.5%* | |
* Movement on a constant currency basis.
Performance measures used throughout
the report
Reported (GAAP)
Complies with International Financial Reporting Standards and the relevant legislation.
Adjusted (Non-GAAP)
Non-GAAP measures provide a useful comparison of performance from one period to the next. The basis of our adjusted measures is explained in the accounting policies accompanying our financial statements and the APM section within Supplementary Information.
Constant currency basis
Removes the effect of exchange rate movements on the translation of the results of our overseas operations. We translate current year results at prior year foreign exchange rates. See page 75 for more details.
Market share
Market share data is presented as a 12-month moving average weighted across the markets in which we operate.
Stick equivalent
Stick equivalent volumes reflect our combined cigarette,
fine cut tobacco, cigar and snus volumes.
2 Imperial Brands | Annual Report and Accounts 2022
Our purpose remains:
Forging a path to a healthier future for moments of relaxation and pleasure.
For more information
please see www.imperialbrandsplc.com
NGP trials | Further | |
validate | NGP | |
further | market | |
roll-outs | launches | |
Top five | ||
aggregate | ||
market | ||
share | ||
growth | ||
Sept 2022 |
Operational efficiencies drive improvements
Behaviours embedded in performance- based culture
STRENGTHENING OUR INVESTMENT CASE…
PHASE 2: IMPROVING
RETURNS
- Revitalised tobacco business driving strong cash returns
- NGP business providing options for potential harm reduction and growth
-
Strong, sustainable cash flow generated from
a high-quality portfolio
2023 - 2025
- New capabilities and more efficient structures delivering operational improvement and strengthening performance
-
Progressive dividend supplemented by surplus capital returns via
a share buyback
AND DELIVERING FOR
ALL STAKEHOLDERS
Our consumers
Millions of adults worldwide choose
to enjoy our tobacco and NGP. Meeting their expectations of quality and understanding their evolving requirements are vital for the long-termsustainable growth of our business.
Our colleagues
Our colleagues are our most important asset.
It is essential we create a supportive, safe and
rewarding work environment to enable them to deliver our goals and develop their careers.
Our customers
We work closely with distributors, wholesalers and retailers to ensure our products are available to adult consumers in a diverse range of outlets worldwide.
They play a crucial role in our business model.
Governments & regulators
Approaches to legislation vary significantly across geographies. We support reasonable regulation of tobacco and nicotine products and look to have constructive engagement with policy makers and regulators.
Our investors
Our investors provide capital to the business and monitor management's allocation of that capital within the business.
Our suppliers
We maintain strong relationships with our tobacco, non-tobacco materials (NTM) and NGP suppliers to help ensure sustainable supply and business continuity, underpinned by fair contract and payment terms.
OUR BRANDS
Cigarettes
Our portfolio of brands connects with adult consumers in all the key tobacco and next generation product segments. We invest in innovation to meet evolving consumer preferences.
c.120
markets
Other tobacco
products & accessories Vapour
Heated tobacco
Modern oral
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Disclaimer
Imperial Brands plc published this content on 02 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 December 2022 14:12:04 UTC.