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Imperial BrandsAnnouncement

06/09/2014 16:36

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RNS Number : 3682M
Imperial Tobacco Group PLC
15 July 2014 
 
IMPERIAL TOBACCO GROUP PLC 
 
Acquisition transforms US business 
 
A subsidiary of Imperial Tobacco Group PLC ("Imperial" or the "Company") has
entered into a purchase agreement with Reynolds American Inc. ("Reynolds") for
the acquisition of assets, including a portfolio of US cigarette brands,
Winston, Maverick, Kool, Salem and US and international e-cigarette brand blu,
plus the national sales force, offices and production facilities currently
owned by Lorillard Inc. ("Lorillard", and together, the "Transaction").  The
assets are to be acquired for a consideration of $7.1bn (£4.2bn) following the
proposed acquisition of Lorillard by Reynolds (the "Acquisition"). After
adjusting for the present value of the expected tax benefits of c.$1.5bn1, the
net acquisition cost of $5.6bn (£3.3bn)implies a multiple of 6.9 times
EBITDA. 
 
Strategy 
 
·     Builds on Imperial's strategy of investing in Growth Brands and Growth
Markets. 
 
·     A major investment in the world's largest profit pool (excluding China)
with structural growth potential underpinned by relative affordability. 
 
·     The enlarged US business will be c.24% of combined2 tobacco net
revenues. 
 
Execution 
 
·     National distribution and sales force transforms Imperial into a major
US competitor with a portfolio including Winston, Maverick, USA Gold, Kool and
Salem and total market share of c.10%. 
 
·     Delivers leadership in e-cigarettes with blu to combine with Imperial's
e-vapour know-how and offers international roll-out potential. 
 
·     Clear integration process for US business with Martin Orlowsky, former
Chairman, President and CEO of Lorillard, appointed Executive Chairman
Designate of the enlarged US business. 
 
Financial 
 
·     All debt financed transaction.  Imperial expects to maintain its
investment grade credit rating on its debt, underpinned by the strong cash
flows from the acquired assets. 
 
·     Cigarette brands will be acquired excluding historic product liabilities
which are subject to an indemnity from Reynolds. 
 
·     Financially attractive deal that is expected to offer a return of over
10%, well in excess of Imperial's cost of capital in its first full year and
is expected to be significantly EPS enhancing in the first full year post
completion. 
 
Alison Cooper, Chief Executive of Imperial Tobacco, said: 
 
"This is a great opportunity to transform our US business and secure a
significant presence in the world's largest accessible profit pool.  We plan
to build a US brand portfolio through national distribution and create a
stronger, more competitive business. We intend to internationalise blu, the US
leader in e-cigarettes and enhance its growth opportunity with our know-how.
We expect opportunities for cost optimisation through integration.  The
acquisition of these assets, without historic product liabilities for the
cigarette brands, on reasonable terms means that it is expected to offer a
return of over 10%, well in excess of our cost of capital in its first full
year and is expected to be significantly earnings enhancing in the first full
year post completion.  The value this will create for shareholders and the
strategic transformation of our position in a key growth market, makes this an
outstanding opportunity." 
 
1.    The Transaction 
 
On 15th July, a subsidiary of Imperial entered into a purchase agreement with
Reynolds to acquire certain brands in the US and other assets to be disposed
as a consequence of the Acquisition of Lorillard by Reynolds announced today. 
Certain obligations of the Imperial subsidiary have been guaranteed by
Imperial. The Transaction is therefore subject to the Acquisition. The
Acquisition requires US anti-trust approval.  This approval process is likely
to take a minimum of 6 to 9 months. On completion of the Transaction, Imperial
will acquire: 
 
·      Cigarette brands in the US currently owned by Reynolds, comprising
Winston, Kool and Salem. 
 
·      A cigarette brand in the US currently owned by Lorillard, Maverick. 
 
·      The e-cigarette business currently owned by Lorillard, consisting of
blu in the US and UK. 
 
·      The infrastructure and factory currently owned by Lorillard at
Greensboro, North Carolina, USA. 
 
The Transaction will include a series of interlocking supply and transitional
agreements between the enlarged Reynolds and Imperial in relation to
continuity of supply of the acquired brands, their visibility at the point of
sale and the route to market for the acquired business.  The key terms of
these agreements have been agreed, and further details will be included in the
circular to shareholders. 
 
The brands to be acquired had Calendar Year 2013 volumes of 20bn stick
equivalents, net revenue of $2.4bn, brand contribution of $1.2bn, EBITDA of
$0.8bn and operating profit of $0.6bn.  The Company expects the value of the
gross assets that are the subject of the Transaction to be approximately
$0.8bn (which excludes deferred tax assets, inventories and other current
assets which are not being acquired as part of the Transaction). 
 
The consideration of $7.1bn (£4.2bn) will be wholly financed by new committed
bank facilities.  Imperial may consider options to refinance all or a portion
of these facilities in the period ahead of closing of the Transaction.  The
rating agencies (Standard & Poor's, Moody's and Fitch) have been consulted on
the financial parameters arising from the Transaction. Imperial expects that
the Company's existing investment grade credit rating will be maintained
following completion of the Transaction. 
 
The present value of the expected US tax savings from the step-up in
amortisation of intangibles is c.$1.5bn1. 
 
The Transaction is conditional on, inter alia:- 
 
·      The completion of the Acquisition of Lorillard by Reynolds. 
 
·      US anti-trust approval of the Reynolds/Lorillard Acquisition. 
 
·      The approval of shareholders of Imperial at a General Meeting. 
 
The Transaction is expected to deliver both a Return on Invested Capital at
over 10% in its first full year, in excess of the Company's weighted average
cost of capital and be significantly EPS enhancing in the first full year
following completion. The consideration implies a multiple of 8.8 times
EBITDA.  After adjusting for the present value of the expected tax benefits of
c.$1.5bn1, the net acquisition cost of $5.6bn implies a multiple of 6.9 times
EBITDA. 
 
Cigarette Brands 
 
The cigarette brands to be acquired in the US are as follows: - 
 
·      Winston, a premium brand and current No.7 brand in the US with 2.2%
share of the US market.  Winston is the world No. 2 brand with strong inherent
brand equity which Imperial intends to rejuvenate with investment and focus. 
 
·      Maverick, a value brand with 2.0% US market share and a strong position
in key states. Maverick has been growing in recent years and has potential in
the value segment alongside Imperial's existing USA Gold brand. 
 
·      Kool, a menthol brand with 1.9% US market share.  Imperial intends to
refocus and invest behind Kool as part of the enlarged portfolio. 
 
·      Salem, a menthol brand with 1.2% share of market. 
 
These brands will combine with Imperial's existing US portfolio at
Commonwealth-Altadis.  Imperial's existing US brand portfolio currently
accounts for a 3% share of the US market, principally with USA Gold (share
1.2%) which is growing its presence in its target 19 states in the US with a
focused marketing and distribution strategy. 
 
Historic Product Liability 
 
The Winston, Maverick, Kool and Salem brands are to be acquired without
historic product liabilities.  An indemnity against such liabilities will be
provided by Reynolds under the terms of the Transaction. 
 
Following completion, Imperial will assume Original Participating Manufacturer
obligations under the MSA on the acquired brands (other than the blu brand),
and its affiliates expect to retain the grandfathered share benefit under the
MSA for Imperial's current US brands. 
 
E-Cigarettes 
 
Imperial will also acquire the e-cigarette business currently owned by
Lorillard, which consists of blu, the number one brand of e-cigarette in the
US market in measured retail distribution with a reported 45%5 value share of
the market at retail.  In the financial year to December 2013, blu had net
revenues of $230m. Lorillard has also recently acquired a UK business, SkyCig,
through which it has begun to launch blu in the UK market.  The e-cigarette
market has been growing strongly in the US in recent years, and now exceeds
$1.7bn6 in total, including a growing online marketplace.  Internationally,
the e-cigarette market is in an early stage of development with considerable
consumer interest suggesting opportunities with stronger branding and improved
technology. 
 
Other Assets to be Acquired 
 
In addition to the brands, Imperial will acquire certain assets (the
infrastructure) currently owned by Lorillard including the factory and office
at Greensboro and c.2,900 employees7, including a substantial national sales
force. 
 
The enlarged US business 
 
The enhanced portfolio has a combined2 cigarette market share of approximately
10% of the US cigarette market.  Imperial also has a major presence in mass
market cigars with its leading brands Backwoods, Dutch Masters and Phillies. 
Imperial's premium cigar business is managed separately in the USA. The
acquisition of blu will deliver immediate leadership of the US e-cigarette
market at retail. 
 
2.       The US market 
 
The US tobacco market is the second largest in the world (ex-China) by volume
but the largest by profit pool (ex-China).  The latest market data indicates
the total US market size as 272bn stick equivalents. 
 
The US market accounts for a significant proportion of the world profit pool,
accounting for an estimated 25% of world tobacco profits (ex-China). 
Estimated3 total profits of the tobacco industry in the US were in excess of
$14bn in the last calendar year on net sales of over $35bn. 
 
The market is in modest volume decline (estimated4 -4% MAT to March 2014) but
offers continuing opportunities going forward. This is mainly due to the
highly affordable price of cigarettes in the US market relative to local
purchasing power. 
 
The competition in the US market comprises local companies with minimal
international business, being principally Altria and the enlarged Reynolds. 
 
The US, through the Food and Drug Administration, provides a relatively stable
regulatory environment. 
 
3.       Imperial's strategy for the enlarged US business 
 
Imperial has a clearly defined strategy to invest in Growth Markets, markets
where it can grow its share of the available profit pool.  The US is one of
Imperial's Growth Markets given the size and growth of its profit pool and
Imperial's under-representation in the market.  Imperial has a clear strategy
for growth set out below: 
 
Brand portfolio strategy with a primary focus on Winston and blu, supported by
a secondary focus on either Maverick, Kool or USA Gold on a state by state
basis. 
 
·     Winston will be the main focus of Imperial's US strategy.  Research in
the US has reinforced Imperial's confidence that Winston can be rejuvenated.
It is a leading global brand (global No.2) which has strong latent brand
equity in the US and has previously demonstrated its capability to grow
supported by increased investment. 
 
·     blu will be the primary focus of the brand portfolio in the e-cigarette
market, combining strong branded equity, blu technology and consumer
recognition of blu with the know-how and expertise of Imperial's subsidiary
Fontem Ventures. 
 
·     Maverick will continue to be a focus in the value segment of the market
which is showing consistent growth. 
 
·     Kool, a menthol brand with distinct regional strength, will benefit from
investment on a state-by-state basis to build on its existing equity. 
 
·     USA Gold will continue to be a focus in line with its rejuvenation
strategy but with broader, national distribution. 
 
The other brands in the portfolio will be largely run to maximise cash. 
 
Distribution transformed by national platform, presence and scale. 
 
We believe the Transaction will enhance Imperial's existing sales force and
will create a proven and experienced team with strong knowledge of brands and
customers. The move from a focused presence in 19 states to a material
presence across the whole of the US will significantly improve the ability of
Imperial to compete and realise its ambitions to grow.  Larger scale will
support greater investment in sales technology.  A cigarette portfolio across
different price points, including mass market cigars and a national brand
leader in e-cigarettes, will make our business much more important to
retailers.  More sales visits, stronger retailer relationships, better
coverage of key accounts and the resulting ability to achieve greater shelf
space, merchandising and point of sale presence will be a key difference post
the Transaction and one that will support the increased brand investment. 
 
Cost optimisation from the combination of the businesses. 
 
There are synergy opportunities from integrating the acquired assets with
Commonwealth-Altadis. Synergies are expected to arise from integrating and
rationalising the enlarged business in respect of: purchasing of tobacco and
non-tobacco materials; manufacturing; marketing costs; sales and marketing
integration; and back office functions. 
 
It is Imperial's intention that all synergies arising from the Transaction
will be reinvested in driving the enlarged brand portfolio strategy, focusing
on Winston, blu and the combination of Maverick, USA Gold and Kool. 
 
Internationalisation of blu e-cigarettes 
 
Building on the strong branded platform and technology that blu has
established in the US market, combined with Imperial's know-how and expertise
through its subsidiary Fontem Ventures, there is a clear opportunity to
accelerate the roll-out of blu e-cigarettes internationally as the market
develops. 
 
4.    Integration Plan 
 
Martin Orlowsky, previously Chairman, President and CEO of Lorillard, has
joined Imperial as Executive Chairman Designate of Imperial's enlarged US
business.  He has an outstanding reputation in the industry from his highly
successful track record at Lorillard.  He has been working on a consultancy
basis so far and prior to closing his focus will be on preparing the
integration plan. He will assume his formal role on completion of the
Transaction to work on: 
 
·   the integration of the business. 
 
·   the delivery of the interim arrangements covering supply and route to
market with Lorillard and Reynolds. 
 
·   the implementation of the portfolio strategy for the enlarged business. 
 
For the period up to completion, interim arrangements will allow Imperial
access to Lorillard's and Reynold's management whilst preserving independence
and confidentiality between the relevant parties. 
 
Building on experience from previous acquisitions, Imperial will put in place
senior integration resource designed to ensure that the resulting enlarged US
business has a strong management team and is built on the best of both
Commonwealth-Altadis and the acquired assets. 
 
Once the Transaction is completed, a transition period will commence during
which Reynolds will contract manufacture Winston, Kool and Salem for Imperial
and Imperial will contract manufacture Newport for Reynolds. 
 
5.    Financial Impact on Imperial 
 
The consideration will be met in cash from new committed bank facilities
already put in place. Imperial may consider options to refinance all or a
portion of these facilities ahead of closing of the Transaction. This new
borrowing facility will also refinance existing core bank borrowings.The main
bank facility has been renegotiated on attractive terms, with a new five year
term until 2019. 
 
The rating agencies (Standard & Poor's, Moody's and Fitch) have been consulted
on the financial parameters arising from the Transaction. Imperial expects
that the Company's existing investment grade credit rating will be maintained
following completion of the Transaction. 
 
In order to accelerate the pace of debt repayment, Imperial has suspended its
share buy-back programme (previously £500m a year).  The shares purchased to
date in the current financial year are 14.16m at a cost of £339m. 
 
Imperial's intention to increase dividends by at least 10% for financial year
2014 is unchanged. 
 
The Transaction is expected to deliver a Return on Invested Capital in excess
of the Company's Weighted Average Cost of Capital and to enhance Imperial's
EPS significantly in the first full year post completion. 
 
Based on combined2 financial information, the USA will become c.24% of
Imperial's tobacco net revenue. 
 
6.   Shareholder Information 
 
Given the size of the Transaction relative to the size of Imperial, the
transaction constitutes a class 1 transaction for the purposes of the FCA's
listing rules and is therefore conditional on approval of Imperial's
shareholders.  Approval of the Transaction will be sought at a General Meeting
which is expected to be held in the coming months.  A circular setting out
further details of the Transaction, including the resolution seeking approval,
is expected to be sent to shareholders in due course. 
 
The Board considers the Transaction to be in the best interests of
shareholders as a whole. Accordingly, subject to their on-going fiduciary
duties, the Board will unanimously recommend that shareholders vote in favour
of the resolution at the General Meeting. 
 
Shareholders are advised to read the whole of the circular to be sent to them
before deciding what action to take in respect of the General Meeting and
should not just rely on the summarised information set out in this
announcement. 
 
Credit Suisse Securities (Europe) Limited ("Credit Suisse") is acting as sole
sponsor and joint financial adviser and Goldman Sachs International ("Goldman
Sachs") is acting as joint financial adviser to Imperial in respect of the
Transaction. 
 
Cautionary statement 
 
The release, publication or distribution of this announcement in jurisdictions
other than the United Kingdom may be restricted by law and therefore any
persons who are subject to the laws of any jurisdiction other than the United
Kingdom should inform themselves about, and observe, any applicable
requirements. This announcement has been prepared for the purposes of
complying with the Listing Rules and the information disclosed may not be the
same as that which would have been disclosed if this announcement had been
prepared in accordance with the laws and regulations of any jurisdiction
outside of England. This announcement is not intended to, and does not
constitute, or form part of, any offer to sell or an invitation to purchase or
subscribe for any securities or a solicitation of any vote or approval in any
jurisdiction, including the United States. Imperial shareholders are advised
to read carefully the formal documentation in relation to the Transaction once
it has been despatched. Any response to the proposals should be made only on
the basis of the information in the formal documentation to follow. 
 
Credit Suisse Securities (Europe) Limited ("Credit Suisse"), which is
authorised by the Prudential Regulation Authority and regulated by the
Prudential Regulation Authority and the Financial Conduct Authority in the
United Kingdom, is acting exclusively as sole sponsor and joint financial
adviser to Imperial Tobacco Group PLC and for no one else in connection with
the content of this announcement and the Transaction and will not be
responsible to any person other than Imperial Tobacco Group PLC for providing
the protections afforded to clients of Credit Suisse, nor for providing advice
in relation to the Transaction, the content of this announcement or any matter
referred to in this announcement. Apart from the responsibilities and
liabilities, if any, which may be imposed on Credit Suisse by the FSMA or the
regulatory regime established thereunder or any other laws, neither Credit
Suisse nor any of its subsidiaries, branches or affiliates owes or accepts any
duty, liability or responsibility whatsoever (whether direct or indirect,
whether in contract, in tort, under statute or otherwise) to any person who is
not a client of Credit Suisse in connection with this announcement, any
statement contained herein or otherwise, nor makes any representation or
warranty, expressly or implied, in relation to, the contents of this
announcement, including its accuracy, completeness or verification or for any
other statement made or purported to be made by Credit Suisse, or on behalf of
Credit Suisse in connection with Imperial Tobacco Group PLC or the Transaction
and nothing in this announcement is or shall be relied upon as a promise or
representation in this respect, whether as to the past or the future. Credit
Suisse accordingly disclaims to the fullest extent permitted by the law all
and any responsibility or liability to any person who is not a client of
Credit Suisse, whether arising in tort, contract or otherwise (save as
referred to above) which they might otherwise have in respect of this
announcement or any such statement. 
 
Goldman Sachs International, which is authorised by the Prudential Regulation
Authority and regulated by the Financial Conduct Authority and the Prudential
Regulation Authority in the United Kingdom, is acting for Imperial Tobacco
Group PLC and no one else in connection with the Transaction and will not be
responsible to anyone other than Imperial Tobacco Group PLC for providing the
protections afforded to clients of Goldman Sachs International, or for giving
advice in connection with the Transaction or any matter referred to herein. 
 
Information regarding forward-looking statements 
 
This announcement includes statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements can be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "projects", "anticipates", "expects",
"intends", "may", "will", or "should" or, in each case, their negative or
other variations or comparable terminology, or by discussions of strategy,
plans, objectives, goals, future events or intentions. These forward-looking
statements include all matters that are not historical facts. They appear in a
number of places throughout this announcement and include, but are not limited
to, statements regarding Imperial's intentions, beliefs or current
expectations concerning, among other things, Imperial's business, results of
operations, financial position, prospects, growth, strategies and the industry
in which it operates as well as those of the Reynolds and Lorillard assets
that are the subject of the Transaction. By their nature, forward looking
statements involve risk and uncertainty because they relate to future events
and circumstances. Forward-looking statements are not guarantees of future
performance and the actual results of Imperial's operations and financial
position, and the development of the markets and the industry in which
Imperial operates, may differ materially from those described in, or suggested
by, the forward-looking statements contained in this announcement. The same
applies in respect of the Reynolds and Lorillard assets that are the subject
of the transaction. In addition, even if the results of operations, financial
position and the development of the markets and the industry in which Imperial
operates are consistent with the forward-looking statements contained in this
announcement, those results or developments may not be indicative of results
or developments in subsequent periods. A number of factors could cause results
and developments to differ materially from those expressed or implied by the
forward-looking statements including, without limitation, general economic and
business conditions, industry trends, competition, changes in regulation,
currency fluctuations, changes in its business strategy, political and
economic uncertainty and other factors discussed in this announcement.
Forward-looking statements may, and often do, differ materially from actual
results. None of the future projections, expectations, estimates or prospects
in this document should be taken as forecasts or promises nor should they be
taken as implying any indication, assurance or guarantee that the assumptions
on which such future projections, expectations, estimates or prospects have
been prepared are correct or exhaustive or, in the case of the assumptions,
fully stated in this document. Any forward-looking statements in this
announcement speak only as of their respective dates, reflect Imperial's
current view with respect to future events and are subject to risks relating
to future events and other risks, uncertainties and assumptions relating to
Imperial's operations, results of operations and growth strategy. As a result
of these risks, uncertainties and assumptions, the recipient should not place
undue reliance on these forward-looking statements as a prediction of actual
results or otherwise. You should specifically consider the factors identified
in this document, in addition to the risk factors that may affect Imperial's
operations which are described under "Risk Factors" in the Company's 2013
Annual Report, which could cause actual results to differ before making any
decision in relation to the Transaction as well as those of the Reynolds and
Lorillard assets that are the subject of the transaction. Subject to the
requirements of the FCA, the London Stock Exchange, the Listing Rules and the
Disclosure and Transparency Rules (and/or any regulatory requirements) or
applicable law, Imperial explicitly disclaims any obligation or undertaking
publicly to release the result of any revisions to any forward-looking
statements in this announcement that may occur due to any change in Imperial's
expectations or to reflect events or circumstances after the date of this
announcement. No statement in this document is intended as a profit forecast
or profit estimate and no statement in this document should be interpreted to
mean that the earnings per share of Imperial, as altered by the Transaction
will necessarily match or exceed the historical or published earnings per
share of Imperial or the relevant entities which form the basis for the
Transaction. 
 
Notes to Editors 
 
Imperial Tobacco Group PLC is a multi-national tobacco company, with
international strength in cigarettes and world leadership in fine cut tobacco,
premium cigars, rolling papers and tubes. The Group has 46 manufacturing sites
and around 35,000 employees and operates in over 160 markets. 
 
In 2013, the Company realigned its geographic footprint into Growth Markets
and Returns Markets and now manages markets based on the strategic role they
play, rather than their geographic proximity. 
 
Growth Markets are characterised by large profit and/or volume pools. We tend
to have shares below 15 per cent and see considerable opportunities for share
and profit growth over the long term. Our main Growth Markets include the USA
and selected markets in the EU, Eastern Europe, Asia, and the Middle East. We
measure the performance of our Growth Markets against market share and revenue
metrics and our quality of growth by the progress our Growth Brands are
making. 
 
In Returns Markets we have relatively large shares, mostly above 15 per cent.
Our objective is to maximise profit, whilst actively managing our market
share. Our main Returns Markets include UK, Germany, and other markets in the
EU, Australia, Eastern Europe and Africa. We measure the performance of our
Returns Markets against market share and revenue metrics and our quality of
growth by the progress our Growth Brands are making. 
 
Contact details for further information 
 
 Investor Contacts                                         Media Contacts                       
 Tom Corran         +44 (0)117 933 7510+44 (0)7527 421951  Alex Parsons    +44 (0)7967 467 241  
 Matt Sharff        +44 (0)117 933 7396+44 (0)7964 110921  Simon Evans     +44 (0)7967 467 684  
 Jo Brewin          +44 (0)117 933 7549+44 (0)7791 975974                                       
 
 
Credit Suisse                       +44 (0) 20 7888 8888 
 
Ian Carnegie-Brown 
 
Charles Donald 
 
Dan Schleifman 
 
Goldman Sachs                  +44 (0) 20 7774 1000 
 
Anthony Gutman 
 
Philip Shelley 
 
Owain Evans 
 
Sources of Information and basis of calculation 
 
All US market and share data is derived from MSAI data as at April 2014 and
The Maxwell Report is based on stick data. 
 
US dollar to GB Sterling translated using an illustrative rate of $1.70 equals
£1. 
 
  
 
1The present value of the expected tax benefits is calculated by taking the
assumed purchase price post certain purchase price adjustments and deducting
the expected book value of the fixed assets to be acquired and other
intangible assets to be acquired, which are not intended to be held within the
US group post-closing, to derive the book value of the intangible assets to be
acquired held within the US group (fair value thereof and purchase price
allocation to be determined post-completion). These are then assumed to be
fully amortised on a straight-line basis over 15 years. The annual
amortisation charge is assumed to be fully deductible for US tax purposes from
the annual taxable profits realised over the 15 year period against an assumed
effective US tax rate of 39%. This benefit is then discounted at 7%. 
 
  
 
2Combined data reflects latest complete financial year and, where appropriate,
is derived from unadjusted public historical financial information. For
Imperial Tobacco Group PLC the year to 30 September 2013.  For Lorillard, Inc.
the year to 31 December 2013. For Reynolds American, Inc. the year to 31
December 2013. 
 
  
 
3SEC reports, Wells Fargo Research. 
 
  
 
4 Maxwell Report. 
 
  
 
5 Lorillard Form 8-K, 24th April 2014. 45% market share excludes online
sales. 
 
  
 
6Exane report on total US e-cigarettes quoting data from Tobacco
Manufacturer's Association. 
 
  
 
7Lorillard Form 10-K, 12th February 2014. 
 
Presentation, Webcast and Conference Call 
 
A presentation for analysts and investors will be given by Alison Cooper, CEO,
and Oliver Tant, CFO at 1400hrs BST at the offices of Goldman Sachs,
Peterborough Court, 133 Fleet Street, London EC4A 2BE. 
 
A live webcast of a presentation for analysts and investors will be available
on www.imperial-tobacco.com from 1400hrs (BST). An archive of the webcast and
the presentation script and slides will also be made available during the
afternoon. 
 
High-resolution photographs are available to the media free of charge at:
www.newscast.co.uk. 
 
Alison Cooper will host a media conference call at 1300hrs (BST), at which
there will be the opportunity for questions. Dial-in number: +44(0)20 3427
1900 / Participant code: 6695651 
 
A replay of this call will be available for one week. To listen, please dial:
Replay number: +44(0)20 3427 0598 / Access code: 6695651. 
 
This information is provided by RNS
The company news service from the London Stock Exchange