The Premium Cigar Growth Opportunity Fernando Dominguez Premium Cigar Director
What is Premium Cigar Business all about? 2
This space appears blank because we have removed the images that appear in the presentation. This is because we currently do not feature tobacco product brand imagery on our website. 3
This space appears blank because we have removed the images that appear in the presentation. This is because we currently do not feature tobacco product brand imagery on our website. 4
It s all About Luxury 5
and Experience This space appears blank because we have removed the images that appear in the presentation. This is because we currently do not feature tobacco product brand imagery on our website. 6
Luxury Industry Sales to Continue Growth Luxury Product Sales CAGR 2011-14F +7-9% +8-10% Growth driven by emerging markets Asia particularly China +10% +6-7% +7-8% Latam (Brazil), Eastern Europe and Middle East becoming more relevant Source: Bain & Company, Spring 2012 7
Premium Cigar Market Total Cigar Market: 13bn sticks Premium Cigar Market Volume 350m USA >60% Spain 6% RoW USA+WE = 85% of total consumption Increasing volumes in line with higher demand of luxury products Main Origins: DR, Cuba, Nicaragua, Honduras Source: Imperial estimates 8
Our Position in the Market Global leader; iconic brands c.40% global share 3 operating areas: Cuban business USA International (non-cuban brands) 9
Our Performance Sales growth across all business: Volumes +11% Value +10% FY11 FY12 Cuban: driven by emerging markets +17% USA: strong growth in our core brands International: driven by VegaFina expansion (>30 markets and +31% volumes) 10
How we do it: Business Approach Portfolio Uniqueness Quality Exclusivity Innovation Footprint Distribution Network Experiences Consumer Customer 11
How we do it: Business Approach Strong presence in all main tobacco growing countries This space appears blank because we have removed the images that appear in the presentation. Portfolio Uniqueness Quality This is because we currently do not feature tobacco product brand imagery on our website. Exclusivity Innovation 12
How we do it: Business Approach and the most global and prestigious brands This space appears blank because we have removed the images that appear in the presentation. Portfolio Uniqueness Quality This is because we currently do not feature tobacco product brand imagery on our website. Exclusivity Innovation 13
How we do it: Business Approach Romeo by Romeo y Julieta USA This space appears blank because we have removed the images that appear in the presentation. Portfolio Uniqueness Quality This is because we currently do not feature tobacco product brand imagery on our website. Exclusivity Innovation 14
How we do it: Business Approach Cohiba Behike Habanos This space appears blank because we have removed the images that appear in the presentation. Portfolio Uniqueness Quality This is because we currently do not feature tobacco product brand imagery on our website. Exclusivity Innovation 15
How we do it: Business Approach Old Habanos Tubes This space appears blank because we have removed the images that appear in the presentation. Portfolio Uniqueness Quality This is because we currently do not feature tobacco product brand imagery on our website. Exclusivity Innovation 16
How we do it: Business Approach New Habanos Tubes This space appears blank because we have removed the images that appear in the presentation. Portfolio Uniqueness Quality This is because we currently do not feature tobacco product brand imagery on our website. Exclusivity Innovation 17
How we do it: Business Approach International distribution network in more than 150 markets Footprint Distribution Network Main markets 18
How we do it: Business Approach CONSUMER ENGAGEMENT Loyalty Programs This space appears blank because we have removed the images that appear in the presentation. This is because we currently do not feature tobacco product brand imagery on our website. Experiences Consumer Customer 19
How we do it: Business Approach CONSUMER ENGAGEMENT Special Events & Activities This space appears blank because we have removed the images that appear in the presentation. This is because we currently do not feature tobacco product brand imagery on our website. Experiences Consumer Customer 20
VIDEO 21
How we do it: Business Approach CONSUMER ENGAGEMENT Product enjoyment places This space appears blank because we have removed the images that appear in the presentation. This is because we currently do not feature tobacco product brand imagery on our website. Experiences Consumer Customer 22
How we do it: Business Approach CUSTOMER ENGAGEMENT Partnerships This space appears blank because we have removed the images that appear in the presentation. This is because we currently do not feature tobacco product brand imagery on our website. Experiences Consumer Customer 23
How we do it: Business Approach CUSTOMER ENGAGEMENT Specialization This space appears blank because we have removed the images that appear in the presentation. This is because we currently do not feature tobacco product brand imagery on our website. Experiences Consumer Customer 24
More to Come Portfolio Leading innovation across the business Develop VegaFina as a global non Cuban Premium cigar brand Exploit brand equity: New Montecristo Mini This space appears blank because we have removed the images that appear in the presentation. This is because we currently do not feature tobacco product brand imagery on our website. 25
More to Come Develop and strengthen category in emerging markets The USA opportunity Footprint 26
More to Come MORE CONSUMERS MORE OCCASIONS Enlarge consumers base through Life Style approach. Use of Digital Media Developing new smoking places Enhance the shopping experience Experiences 27
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The Premium Cigar Growth Opportunity Strong Foundations and Opportunities Sustainable Growth 29
Imperial Tobacco Investor Day February 2013