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

IV

AL

R

U

D

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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

www.imperialbrandsplc.com 3

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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.