Unlocking Our Potential Fewer, bigger, better execution

Arthur van Benthem Group Sales Director

1 My Journey

2 Unlocking Our Potential

1. Sales Growth Drivers… fewer, bigger, better execution

2. Customer Engagement… leveraging shopper & customer insights

3 Unlocking Our Potential

1. Sales Growth Drivers… fewer, bigger, better execution

2. Customer Engagement… leveraging shopper & customer insights

4 Priority Sales Growth Drivers

Total Tobacco portfolio of Global, Regional and Local brands targeting core consumer needs

Margin growth from superior Excise and BPPC capability

Consumer needs based game-changing and scalable innovation

A customer-centric route to market which maximizes Availability and Customer Advocacy

5 Fewer, Bigger, Better Execution

Prioritise key initiatives

Scale initiatives

Sustainability

6 Reinvestment for Growth

OurOur KeyKey AssetsAssets

BrandBrand TotalTotal MarketMarket PeoplePeople EquityEquity TobaccoTobacco FootprintFootprint

High quality investments, high returns ƒ Investment in growth ƒ Investment efficiency ƒ Scale ideas within/across markets Performance management ƒ Process, Leadership and Organisation Capabilities

7 Portfolio

8 Davidoff Driving Premium Growth

220 Ukraine Davidoff (Indexed) Total Davidoff (Indexed) 200 180 143 160 131 140 127 120 100 113 80 111 106 60 100 40 20 0 May Aug Nov Feb May Aug Nov Feb May FY05 FY06 FY07 FY08 FY09 FY10 HY11 09 09 09 10 10 10 10 11 11

Davidoff KSSL Davidoff Slim Davidoff SSL Davidoff PL

HY11 is annualised 9 Gauloises Success in North Africa

Morocco +13%

Algeria +40%

Tunisia +36%

10 Building JPS International Profile

8 12 Germany UK 10 JPS Silver 6 8 JPS 6 4 4 2 Pall Mall 2 0 0 Apr Oct Apr Oct Apr Sep Sep Sep Sep Sep 09 09 10 10 11 06 07 08 09 10 500 3 Total JPS indexed volume Australia 400 2 300 JPS range 200 1 100

0 0 Sep Sep Sep Sep Sep Sep Sep Apr Oct Apr Oct Apr 04 05 06 07 08 09 10 09 09 10 10 11

Germany, UK, and Australia show market shares 11 Driving FCT Growth in EU Accession

Cigarette CAGR -2% FCT CAGR +7% 130 SE CAGR -1% 120

110

100

90

80

billion stick equivalent 70

60

50 FY06 FY07 FY08 FY09 FY10

FMC FCT

Imperial estimates; combined market volumes for Poland, Hungary, Czech Republic, Slovakia and Slovenia 12 EU Accession Share Momentum

39.7 40

35

30 23.4 22.7 23.2 22.2 25 21.7 18.3 17.2 20 13.6 15

market share (%) 7.2 10

5

0 FY06 FY07 FY08 FY09 FY10

Weighted Avge FMC Share Weighted Avge FCT Share

Imperial estimates; weighted average shares for Poland, Hungary, Czech Republic, Slovakia and Slovenia combined 13 Rolling Out C. Europe Growth Model

30 Ducados Rubio MYO in Spain 25% 25

20

15

10 % share of FCT category

5

0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May 10 10 10 10 10 10 10 10 10 11 11 11 11 11

14 Innovation

15 Capitalising on Eastern Europe Growth

25

20

Fair share 15 13%

10 Imperial share of Growth 5

0

Superslims KS Superslims

16 Exploiting Scalable Innovation

ƒ Patented GlideTec innovation ƒ Consumer “wow” effect ƒ Initial launch in UK – Asda, BP, Shell & Esso ƒ Significant capacity investment ƒ Multi market roll-out planned

17 VIDEO – GlideTec Customer Focus Group

This video has not been made available on our website Pricing

19 Excise Approach Germany

ƒ Long term excise tax predictability ƒ Mix between Specific and Ad Valorem ƒ Innovative minimum excise tax ƒ Tax differentials between product categories

20 Enhancing our Capabilities in brand, pack, price by channel What it is Adjust

Identify Define BPPC Execute Picture of