Imperial Brands (IMB) Barclays 17th Annual Global Consumer Staples Conference summary

Stock performance and strategic progress

• Achieved 106% total return since July 2020, outperforming most tobacco peers and major indices, while trading at a low P/E multiple.

• Four years into a five-year strategy, with significant capability improvements in people, processes, and strategy clarity.

• Attracted top consumer goods talent and leveraged strong internal teams to drive change.

• Delivered on commitments despite inflation, regulatory challenges, and exiting the Russian market.

Financial guidance and future planning

• Accelerating adjusted operating profit, targeting mid-single digit growth, with further guidance expected in November.

• Current focus is on delivering the final year of the five-year plan, with future planning underway but not yet finalized.

• Principles of consumer focus and fact-based strategy will continue in future programs.

U.S. market dynamics and competition

• U.S. listing not currently feasible due to turnover requirements and shareholder approval hurdles.

• U.S. business benefits from a broad portfolio across price points, reducing margin pressure compared to premium-focused peers.

• U.S. cigarette market volume declines are not expected to be the new normal; pricing power remains strong, with illicit vapes and macroeconomic pressures as temporary factors.

• Japan Tobacco's acquisition of Vector Group will increase competition in the discount segment but is not expected to dramatically alter market dynamics.

• No MSA legal settlement payments impact, and tobacco leaf cost inflation is expected to ease but not turn deflationary.