Imperial Tobacco Group PLC Annual Report and Accounts 2006 Annual Imperial Tobacco Group PLC Financial Highlights

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Imperial Tobacco Group PLC Annual Report and Accounts 2006 Annual Imperial Tobacco Group PLC Financial Highlights ImpTob Rep Cover new.qxd 6/12/06 15:00 Page 2 Imperial Tobacco Group PLC Group Imperial Tobacco Annual Report and Accounts 2006 Financial Highlights (In £’s million) 2006 % change 2005 Revenue 11,676 +4% 11,229 Imperial Tobacco Group PLC Revenue less duty 3,162 +1% 3,123 Annual Report and Accounts 2006 Profit from operations 1,311 +6% 1,240 Adjusted profit from operations 1,356 +5% 1,297 Building Profit before tax 1,168 +8% 1,078 on our (In pence) 2006 % change 2005 Basic earnings per share 122.2 +13% 108.6 Adjusted earnings per share 122.2 +9% 112.2 success Diluted earnings per share 121.6 +12% 108.1 Dividend per share 62.0 +11% 56.0 Management believes that reporting adjusted measures provides a better comparison of business performance for the year and reflects the way in which the business is controlled. Accordingly, adjusted measures of profit from operations, net finance costs, profit before tax, taxation and earnings per share exclude, where applicable, restructuring costs, retirement benefit net finance income, fair value gains and losses on derivative financial instruments and related taxation effects. Reconciliations between adjusted and reported profit from operations, net finance costs and profit before tax are included within note 1 to the financial statements, adjusted and reported taxation in note 6, and adjusted and reported earnings per share in note 8. The term adjusted is not a defined term under International Financial Reporting Standards and may not be comparable with similarly titled measures reported by other companies. Adjusted Earnings Per Share Dividend Per Share Adjusted Profit from (pence) (pence) Operations (£million) 122.2p 62p £1,356m +9% on 2005 +11% on 2005 +5% on 2005 Imperial Tobacco Group PLC PO Box 244 Southville Bristol BS99 7UJ ImpTob Rep Cover new.qxd 6/12/06 15:02 Page 4 The Group at a Glance Imperial Tobacco is the world’s fourth largest international tobacco company, which manufactures, markets and sells a comprehensive range of cigarettes, tobaccos, rolling papers and tubes. Overview Our Brands 2006 Financial Performance Key Global Brands Imperial Tobacco products are available Our key premium international cigarette brand Davidoff Our key global brands of Davidoff, West, Drum, Golden Virginia and Group Revenue Less Duty in over 130 countries worldwide. Our has a strong foothold in Asia and a growing presence Rizla are complemented by a strong portfolio of regional and local geographic and product diversity provides in a number of markets worldwide. £3,162m brands such as Lambert & Butler, JPS, Horizon, Maxim, Excellence business resilience and a strong platform West is our biggest selling cigarette brand with and Route 66. for future growth. its major markets in Germany and in Central and Eastern Europe. Adjusted Profit Complementing our cigarette portfolio we are world from Operations £1,356m leaders in fine cut tobacco, papers and tubes with brands such as Golden Virginia, Drum and Rizla. We have clear market leadership in the UK, Lambert & Butler has been the UK’s best selling United Contributions Revenue Less Duty Adjusted Profit which is a key profit centre for the Group, cigarette for 8 consecutive years with Richmond to the Group from Operations Kingdom with strong positions in cigarette, fine cut the UK’s number two cigarette brand. tobacco and papers. Golden Virginia is the UK’s leading fine cut tobacco brand. UK key brands: Lambert & Butler, Richmond, Windsor Blue, Superkings, Embassy, Regal, Golden Virginia, £835m £506m Drum, Rizla. Germany is an important contributor to Our cigarette brand JPS has been the main driver Germany Contributions Revenue Less Duty Adjusted Profit our overall results. Our cigarette market behind the growth in our cigarette share, with West a to the Group from Operations share is growing and although trading key brand in Germany in both cigarette and other conditions are challenging, our broad tobacco products. portfolio enables us to respond to changing Germany key brands: consumer dynamics. West, Davidoff, JPS, Cabinet, Peter Stuyvesant, R1, Drum, Van Nelle. £584m £274m Building on our leading position in fine Davidoff, West and JPS are performing strongly Rest of Contributions Revenue Less Duty Adjusted Profit cut tobacco and papers, we have growing in the premium, mid and value segments across to the Group from Operations Western cigarette shares in a number of markets the region. Europe in our Rest of Western Europe region, Rest of Western Europe key brands: despite a highly competitive and Davidoff, West, JPS, Route 66, Bastos, Interval, Manufacturing regulated environment. Van Nelle, Golden Virginia, Drum, Rizla. Our 32 factories are focused £637m £324m Cigarette factories on production quality, business simplification and optimising 21 our cost base. We continue Our Rest of the World region is diverse with Davidoff is growing across this region with line to increase productivity and Rest of Contributions Revenue Less Duty Adjusted Profit Other tobacco over 100 countries, with different dynamics, extensions in the Middle East, Asia and Eastern reduce our unit costs. to the Group from Operations the World opportunities and challenges. We are Europe and launches into Africa. product factories 8 growing our market shares and sales Rest of the World key brands: volumes in many markets across the region. Davidoff, West, Paramount, Route 66, Excellence, Boss, Prima, Maxim, Horizon, Classic, Rizla. Papers and tubes factories 3 Cert no. SGS-COC-1722 £1,106m £252m This Annual Report and Accounts is printed on Arctic the Volume. This paper is produced from 100% ECF (Elemental Chlorine Free) pulp that is fully recyclable. It has FSC (Forest Stewardship Council) certification and has been manufactured within a mill which is registered under the British and international Designed and produced by Black Sun Plc. quality standard of BS EN ISO 9001-2000 and the www.imperial-tobacco.com Printed in England by Butler and Tanner. environmental standard of BS EN ISO 14001-1996. ImpTob Rep Cover new.qxd 6/12/06 15:02 Page 4 The Group at a Glance Imperial Tobacco is the world’s fourth largest international tobacco company, which manufactures, markets and sells a comprehensive range of cigarettes, tobaccos, rolling papers and tubes. Overview Our Brands 2006 Financial Performance Key Global Brands Imperial Tobacco products are available Our key premium international cigarette brand Davidoff Our key global brands of Davidoff, West, Drum, Golden Virginia and Group Revenue Less Duty in over 130 countries worldwide. Our has a strong foothold in Asia and a growing presence Rizla are complemented by a strong portfolio of regional and local geographic and product diversity provides in a number of markets worldwide. £3,162m brands such as Lambert & Butler, JPS, Horizon, Maxim, Excellence business resilience and a strong platform West is our biggest selling cigarette brand with and Route 66. for future growth. its major markets in Germany and in Central and Eastern Europe. Adjusted Profit Complementing our cigarette portfolio we are world from Operations £1,356m leaders in fine cut tobacco, papers and tubes with brands such as Golden Virginia, Drum and Rizla. We have clear market leadership in the UK, Lambert & Butler has been the UK’s best selling United Contributions Revenue Less Duty Adjusted Profit which is a key profit centre for the Group, cigarette for 8 consecutive years with Richmond to the Group from Operations Kingdom with strong positions in cigarette, fine cut the UK’s number two cigarette brand. tobacco and papers. Golden Virginia is the UK’s leading fine cut tobacco brand. UK key brands: Lambert & Butler, Richmond, Windsor Blue, Superkings, Embassy, Regal, Golden Virginia, £835m £506m Drum, Rizla. Germany is an important contributor to Our cigarette brand JPS has been the main driver Germany Contributions Revenue Less Duty Adjusted Profit our overall results. Our cigarette market behind the growth in our cigarette share, with West a to the Group from Operations share is growing and although trading key brand in Germany in both cigarette and other conditions are challenging, our broad tobacco products. portfolio enables us to respond to changing Germany key brands: consumer dynamics. West, Davidoff, JPS, Cabinet, Peter Stuyvesant, R1, Drum, Van Nelle. £584m £274m Building on our leading position in fine Davidoff, West and JPS are performing strongly Rest of Contributions Revenue Less Duty Adjusted Profit cut tobacco and papers, we have growing in the premium, mid and value segments across to the Group from Operations Western cigarette shares in a number of markets the region. Europe in our Rest of Western Europe region, Rest of Western Europe key brands: despite a highly competitive and Davidoff, West, JPS, Route 66, Bastos, Interval, Manufacturing regulated environment. Van Nelle, Golden Virginia, Drum, Rizla. Our 32 factories are focused £637m £324m Cigarette factories on production quality, business simplification and optimising 21 our cost base. We continue Our Rest of the World region is diverse with Davidoff is growing across this region with line to increase productivity and Rest of Contributions Revenue Less Duty Adjusted Profit Other tobacco over 100 countries, with different dynamics, extensions in the Middle East, Asia and Eastern reduce our unit costs. to the Group from Operations the World opportunities and challenges. We are Europe and launches into Africa. product factories 8 growing our market shares and sales Rest of the World key brands: volumes in many markets across the region. Davidoff, West, Paramount, Route 66, Excellence, Boss, Prima, Maxim, Horizon, Classic, Rizla. Papers and tubes factories 3 Cert no. SGS-COC-1722 £1,106m £252m This Annual Report and Accounts is printed on Arctic the Volume. This paper is produced from 100% ECF (Elemental Chlorine Free) pulp that is fully recyclable. It has FSC (Forest Stewardship Council) certification and has been manufactured within a mill which is registered under the British and international Designed and produced by Black Sun Plc.
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