#1FULL YEAR RESULTS 16 NOVEMBER 2021 IMPERIAL BRANDS#2Disclaimer Certain statements in this announcement constitute or may constitute forward-looking statements. Any statement in this announcement that is not a statement of historical fact including, without limitation, those regarding the Company's future expectations, operations, financial performance, financial condition and business is or may be a forward-looking statement. Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected implied in any forward-looking statement. These risks and uncertainties include, among other factors, changing economic, financial, business or other market 2 Full Year Results | 16 November 2021 conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described in this announcement. As a result, you are cautioned not to place any reliance on such forward-looking statements. The forward- looking statements reflect knowledge and information available at the date of this announcement and the Company undertakes no obligation to update its view of such risks and uncertainties or to update the forward-looking statements contained herein. Nothing in this announcement should be construed as a profit forecast or profit estimate and no statement in this announcement should be interpreted to mean that the future earnings per share of * IMPERIAL BRANDS the Company for current or future financial years will necessarily match or exceed the historical or published earnings per share of the Company. This announcement has been prepared for, and only for the members of the Company, as a body, and no other persons. The Company, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this announcement is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed.#3Agenda OVERVIEW FINANCIAL UPDATE AND OUTLOOK BUILDING FOUNDATIONS FOR FUTURE GROWTH Q&A * Stefan Bomhard Lukas Paravicini Stefan Bomhard Stefan Bomhard Lukas Paravicini IMPERIAL BRANDS Full Year Results | 16 November 2021#42021 Highlights OUR TRANSFORMATION TO DELIVER OUR FULL POTENTIAL PRIORITY MARKETS Targeted investments to stabilise market share CONSUMER New consumer office providing key insights 4 Full Year Results | 16 November 2021 WIDER PORTFOLIO Greater focus delivering stronger performance Focus on priority combustible markets Consumer at the centre of the business Strategic Pillars Drive value from our broader market portfolio Transforming Imperial Brands Build a targeted NGP business Simplified and efficient operations Performance -based culture and capabilities Critical Enablers PERFORMANCE Rigorous performance focus with new leadership * IMPERIAL BRANDS NGP Targeted trials launched in line with plans NEW WAYS OF WORKING Simplified structure delivering focus and efficiencies.#5Strengthened Leadership Team EXPERIENCED TEAM COMMITTED TO DELIVERING STRATEGY a Stefan Bomhard Chief Executive Officer Appointed: July 2020 Lukas Paravicini Chief Financial Officer Appointed: May 2021 Murray McGowan Chief Strategy & Development Officer Joined: July 2020 5 Full Year Results | 16 November 2021 Joerg Biebernick President, Europe Region Joined: Nov 2017 Alison Clarke Chief People & Culture Officer Joined: Sept 2020 Kim Reed President and CEO, Americas Region Joined: June 2019 Anindya Dasgupta Chief Consumer Officer Joined: May 2021 * IMPERIAL BRANDS Paola Pocci President, Africa, Asia & Australasia Region. Joined: Sept 2021 Javier Huerta Chief Supply Chain Officer Joined: Feb 2021#6Improving Share Trajectory in Priority Markets SHARPER FOCUS BEGINS TO ARREST LONG-TERM SHARE DECLINES PRIORITY MARKET AVERAGE SHARE PERFORMANCE* FY17 14 (15)bps (25)bps (66)bps FY16 FY18 6 Full Year Results | 16 November 2021 FY19 (22)bps FY20 (17)bps FY21 (2)bps +15bps 0€ NK * 12 month share A +20 bps -50 bps +20 bps +10 bps IMPERIAL BRANDS -120 bps 个 ↓ 个 个 → *MAT weighted average market share growth of priority markets; consistent market size#7Successful Year of Delivery A RESILIENT TOBACCO PERFORMANCE AND STRONG CASH FLOW TOBACCO NET REVENUE* 个 +1.5% FREE CASH FLOW £1.5bn 7 Full Year Results | 16 November 2021 TOBACCO & NGP AOP* 个 +4.3% NET DEBT TO EBITDA | -0.5x to 2.2x (includes 0.1x FX benefit) ADJUSTED EPS* * ↑ +2.8% IMPERIAL BRANDS RETURN ON INVESTED CAPITAL ↑+130bps to 16.5% * Organic basis#8FINANCIAL REVIEW Lukas Paravicini#9Initial Observations A HIGH-QUALITY BUSINESS WITH POTENTIAL OBSERVATIONS AFTER SIX MONTHS High quality business Clear strategy to unlock value Strong cash flows to drive investment and shareholder returns. ● MY PRIORITIES Sustainable free cash flow generation. Modernise finance ways of working Committed to transparent disclosure ● ● 9 Full Year Results | 16 November 2021 * IMPERIAL BRANDS#10Successful Year of Delivery A RESILIENT TOBACCO PERFORMANCE AND STRONG CASH FLOW TOBACCO NET REVENUE* 个 +1.5% FREE CASH FLOW £1.5bn 10 Full Year Results | 16 November 2021 TOBACCO & NGP AOP* 个 +4.3% NET DEBT TO EBITDA | -0.5x to 2.2x (includes 0.1x FX benefit) ADJUSTED EPS* * ↑ +2.8% IMPERIAL BRANDS RETURN ON INVESTED CAPITAL ↑+130bps to 16.5% * Organic basis#11Net Revenue Growth Driven by Tobacco Pricing Tobacco Pricing NGP NET REVENUE STABILISING AS WE RESET OUR FOCUS £7.738m FY20 net revenue excl. divestment -2.9% Tobacco volume +1.4% +4.4% Tobacco price/mix 11 | Full Year Results | 16 November 2021 -0.1% NGP net revenue £7,847m FY21 organic constant currency net revenue STRONG TOBACCO PERFORMANCE -2.9% tobacco volumes remain better than historical trend +1.5% tobacco net revenue excluding Australia excise change; +2.7% tobacco net revenue +5.6% tobacco price/mix +8.6% NGP NR growth excl. exits IMPERIAL BRANDS - Europe vapour growth offset by Japan and Russia exits -3.9% reported NGP NR after exits. Full reconciliation of net revenue including divestment impact and foreign exchange in Appendix#12Delivering Organic Adjusted Profit Growth STRONG TOBACCO GROWTH AND REDUCED NGP COSTS £3,496m FY20 AOP excl. divestment Underlying performance £138m Tobacco operating income FY21 events £ (88)m £(52)m Australia net stock profit 12 | Full Year Results | 16 November 2021 US state litigation charge +4.8% Foundation building £ (40)m NGP reduced costs £124m FY20 NGP write down £60m NGP operating income £26m Distribution & elims * IMPERIAL BRANDS FY21 operational levers investment Full reconciliation of adjusted operating profit including divestment impact and foreign exchange in Appendix £3,664m FY21 organic AOP constant currency#13Operating Profit: Adjusting Items as Guided MAJOR CHANGE PROGRAMME ON TRACK TO DELIVER STEP-CHANGE FY21 Reported operating profit Restructuring costs Amortisation and impairment Profit on subsidiary disposal Net other* Organic adjusted operating profit 13 | Full Year Results | 16 November 2021 £3,146m £257m £450m £(281) m £ (2)m £3,570m * - IMPERIAL BRANDS Adjustments to reported operating profit Organisational change programme on track Restructuring costs in line with strategy guidance Programme will deliver step-change in capabilities Expect initiatives substantially completed by end FY22 FY21 last year of legacy cost optimisation programmes £118m NGP intangible asset impairment £73m reflected in restructuring costs £45m included in amortisation & impairment. Profit on subsidiary disposal Premium Cigar disposal proceeds as per half year *Net other includes fair value of loan receivable movements, adjusted operating profit from the divested Premium Cigar Division, excise tax provision, acquisition and disposal costs#14EPS Up +2.8% Driven by Higher Operating Profit ** PROFIT UPSIDE PARTLY OFFSET BY TAX AND EARLY BOND REPAYMENT 247.2p +2.8% +17.8p +1.4p (10.6)p (1.6)p Minorities & JV FY20 Operating Interest adjusted Profit EPS excl. divestment Tax 14 Full Year Results | 16 November 2021 254.2p FY21 organic adjusted constant currency EPS (3.1)% (7.7)p FX (0.3)% 246.5p FY21 organic adjusted EPS MANAGING INTEREST AND TAX IMPERIAL BRANDS Good deleverage progress Interest saving from lower debt partly offset by early $1.25bn Jul 22 bond repayment Benefits gross debt, no impact on net debt Expect FY22 interest charge of £360m Upward pressure on tax FY21 tax rate of 22.6% marginally better than guidance Expect upward pressure to continue in FY22 Full reconciliation of EPS including divestment impact and foreign exchange in Appendix#15Continued Robust Cash Delivery £1.5BN OF FREE CASH FLOW INCLUDES WORKING CAPITAL UNWIND £ CASH £1.5bn Free cash-flow +1% Dividend growth 15| Full Year Results | 16 November 2021 CASH CONVERSION 83% Includes c. (20)% impact from FY20 working capital unwind (£ NET DEBT 2.2x Net debt / EBITDA £8.6bn Adjusted net debt * IMPERIAL BRANDS Where possible IMB operates a cash pooling arrangement with its entities, including Logista Average Logista 12-month rolling daily benefit £2.0bn, year-end balance £1.8bn#16Good Progress Towards Target Leverage 2.2X GEARING; NEARING SUSTAINABLE TARGET RANGE Good Deleverage progress 2.7x 0.2x 0.2x 0.1x Premium Cigar sale Cash generation. Lower end of 2.0-2.5x target leverage 16 | Full Year Results | 16 November 2021 FX 2.2x * Capital allocation priorities 1 Investing in the strategy 2 Strong and efficient balance sheet 3 Progressive dividend policy 4 Surplus capital returns. IMPERIAL BRANDS#17FY22 Outlook STRENGTHENING OUR FOUNDATIONS Delivery in line with our medium-term plan Net revenue constant currency growth at a similar rate as FY21 Adjusted AOP at constant currency to grow slightly slower than revenue reflecting increased investment Phasing weighted to second half Higher tax rate (c. 24%) partly offset by lower finance charge 17 Full Year Results | 16 November 2021#18Strong Performance in FY21 Creates Momentum STRENGTHENING THE BUSINESS AHEAD OF PHASE TWO SUMMARY OF FY21 Building the foundations 21 Strengthening performance Rebuilding the balance sheet 18 Full Year Results | 16 November 2021 DA IMPERIAL BRANDS#19BUILDING FOUNDATIONS FOR FUTURE GROWTH Stefan Bom hard#20A Clear Five-Year Plan With Two Phases GOOD PROGRESS IMPLEMENTING PHASE ONE OF OUR STRATEGY Strategic focus Net revenue Adjusted operating profit FY21 TO FY22 Phase One-Strengthening Increased investment in operational growth drivers • New ways of working to deliver efficiencies Implement operational excellence improvements FY22 - Flat on FY21 (excluding non-repeat of net £40m US state litigation settlement) with no margin reset necessary 20 Full Year Results | 16 November 2021 FY23 TO FY25 Phase Two - Improving Returns ● ● Gradually improving trajectory with 5-year CAGR of 1-2% ● * ● Investment and operational improvements enhance financial delivery Refine investment to consolidate delivery Leveraging efficiency benefits IMPERIAL BRANDS Improving profit growth 3-year mid-single digit CAGR This outlook is on an organic basis#21A Year of Building Connections BUILDING FOUNDATIONS WITH COLLEAGUES, CUSTOMERS, CONSUMERS edel Q&A WITH THE ELT HESTS- JA K FLAS wwww www SK BES 33 000 21 | Full Year Results | 16 November 2021 BRAN 2004 West FN West RESSEWELT WAST IMPERIAL BRANDS IMPERIAL BRANDS#22New Purpose and Vision CREATING A COMMON HIGH-PERFORMANCE CULTURE FOR IMPERIAL BRANDS Focus on priority combustible markets Consumer at the centre of the business Strategic Pillars Drive value from our broader market portfolio Transforming Imperial Brands Build a targeted NGP business 22 | Full Year Results | 16 November 2021 Simplified and efficient operations Performance -based culture and capabilities Critical Enablers IMPERIAL BRANDS OUR PURPOSE "Forging a path to a healthier future for moments of relaxation and pleasure" OUR VISION "To build a strong challenger business powered by responsibility, focus and choice"#23ESG: Foundations for a Responsible Business OUR PURPOSE AND VISION DEFINE OUR ESG PRIORITIES ESG PRIORITIES Consumer health Climate & energy Human 3 Waste 13 8 Farmer 6 livelihoods & welfare GOOD HEALTH AND WELL-BEING Wo rights M 12 CLIMATE ACTION DECENT WORK AND ECONOMIC GROWTH CLEAN WATER AND SANITATION RESPONSIBLE CONSUMPTION AND PRODUCTION QO 23 | Full Year Results | 16 November 2021 21 PROGRESS Launched NGP heated tobacco and vapour trials Commitment to net zero by 2040 Step change in Board and ELT diversity BUSINESS AMBITION FOR Strengthened team with new ESG Director and Board committee 1.5°C * 22 PRIORITIES Conclude refresh of ESG strategy and priorities ESG Materiality Assessment and Stakeholder Engagement FT CLIMATE LEADERS FINANCIAL TIMES statista 2021 IMPERIAL BRANDS On track for Task Force on Climate- related Disclosures (TCFD)#24Priority Markets: Clear Levers to Improve Performance >25 GROWTH INITIATIVES IN OUR FIVE PRIORITY MARKETS Focus on priority combustible markets Consumer at the centre of the business Strategic Pillars Drive value from our broader market portfolio Transforming Imperial Brands Build a targeted NGP business Simplified and efficient operations Performance -based culture and capabilities Critical Enablers SIX OPERATIONAL LEVERS IN OUR FIVE PRIORITY MARKETS Cigarettes Fine-cut All Combustibles ** 24 Full Year Results | 16 November 2021 IMPERIAL BRANDS 1 Increase participation in sub-premium 2 Drive and rejuvenate local jewel brands 3 Optimise our approach to the value segment 4 Maximise the potential of fine-cut tobacco category 5 Drive performance in under-penetrated channels and regions 6 Maximise value creation through Key Accounts#25USA: Delivering Share Growth and Strong Financials INVESTMENT STRENGTHENING PERFORMANCE CIGARETTE MARKET SHARE +20bps to 9.1% MASS MARKET CIGAR +500bps TOBACCO NET REVENUE +10.4% ADJUSTED OPERATING PROFIT +8.0% STRONG DELIVERY 3rd year of market share growth • Winston and Kool share held in sub-premium category • Sonoma and Crowns drive share growth in deep-discount segment • Revenue driven by - strong cigarette pricing and - mass market cigar growth ● 25 Full Year Results | 16 November 2021 Winston KOL FILTER KINGS ● NATURALLY SMOUTH RED BOX TRUE MENTHOL FK SONOMA MALTE IN USSA. INVESTING IN GROWTH DRIVERS Expanding coverage and distribution IMPERIAL BRANDS Winston brand equity investment test trial of new pack design. Texas CROWNS 20 OLASE A C-GARETTED • Recruitment and training of 200 new sales reps Winston fenaceo INGREDIENTS TOBACCO & WATER MALLRALLY SHEATH#26USA: Mass Market Cigar Significant Growth GAINING SHARE WITHIN A GROWING CATEGORY CONSUMER-FOCUSED PORTFOLIO BACKWOODS Master's +500bps Category share growth (MAT) BACKWOODS BACKWOODS PACKWIDONS BACKWOODS SMALL BATCH BATCH N 001 EXCLUSIVE CIGARS ALL NATURAL LEAF WRAPPER AUTHENTIC CIGARS SURGEON GENERAL WARNING T Use ameses The End Of Darth And Low Weight WILD RUM 5 CIGARS #2 Mass market cigar volume manufacturer WARNING: Cigar smok can cause cancers of mouth and throat, eve if you do not inhale DARK LEAF Cigare HIZ KANLURAL LEAF WRATHFER WARNING: Cigar smo can cause cancers of mouth and throat, ev if you do not inhale 26 | Full Year Results | 16 November 2021 SINCE 1912 +45% Volume growth (vs LY) 2$1.29 21.29 2 $1.29 HEAL SWEET * 13 Dutch Dutch Dutch OVICA TSH WAYCERY Leaf Leaf Leaf RIPE BERRY ALLIMATURAL SP PURE TOBACCO FOCUS ON OPERATIONAL LEVERS DRIVES PERFORMANCE Leveraging our iconic heritage brands • Engaging through point of sale, events and special edition flavours • Meeting demand in natural wrapper segment with Dutch Leaf launch • Investing in leaf supply and quality ● ODS IC OBACCO MILD CIGARS SWEET AROMATIC SWEET AROMATIC GEON GENERAL WARUNG MILD CIGARS CHONEY HONEY SURGEON GENERAL WARNING Pear Smeking Of The Maigh And Throat Kap at ghale Cause Cancers CIGARS HONEY HONEY BERRY SURGEON GENERAL WARNING Car Cause Lun Lancer A * MILD CIGARS BLASET BLACK 'N SWEET AROMATIC SURGEON GENERAL WARNING Cor Smoking Cor Ciss Ca Of The Mon And Throut Even You Ostale Calces MILD CIGARS ORIGINAL WILD'n MILD IMPERIAL BRANDS SURGEON GENERAL WARNING Magi Sams RAC W S ALL HAT#27Germany: Investing to Arrest Long-Term Declines IMPROVING SHARE TREND IN RECENT MONTHS FOCUS ON BRAND EQUITY AND SALES EXCELLENCE Investing to improve sales coverage and distribution. • Improved channel, regional and key account focus Operational changes to improve effectiveness and efficiency • New equity campaigns to rejuvenate JPS Larger pack formats to meet value demand • Market remains attractive but highly competitive 27 | Full Year Results | 16 November 2021 JR JOHN PLAYER SPECIAL cafe & PLAYERS PLAY LET THE PLAYERS PLAY LET THE PLAYERS PLAY L combustible share vs LY LET THE MAYERS FY21 combustible market share (50)bps 20% ** IMPERIAL BRANDS 写 JOHN PLAYER SPECIAL ER NE PEL-P UNSER NEUER DOPPEL-PACK Je 13% JETTY SPASEN 17% 16.3C/ B of Group net revenue#28NV Australia: Actions Are Improving Performance IMPROVED SHARE TRAJECTORY IN RECENT MONTHS GROWTH INITIATIVES TO IMPROVE SHARE • Improved performance over recent months • Initiatives have strengthened trade advocacy Continued success with P&S • Launch of crushball formats and focus on new pack size variants • New brand and product opportunities to address. consumer needs. 28 Full Year Results | 16 November 2021 GOLD CHN PLAYER SPECIAL JE 30 combustible share vs LY JOHN PLAYER SPECIAL JOHN PLAYER SPECIAL B Je 20 ar 25 greme AVE (120)bps 32% RUM Fors GLEND FY21 combustible market share * RIVERSTON ROLLING TOBACCO FRM TOUCH FILTER PARKER & SIMPSON SIMPSON IMPERIAL BRANDS PARKER & SIMPSON 20g lue AMENT 25g of Group net revenue 4% Pack images are internal only#29UK & Spain: Targeted Brand Strategy Drives Growth IMPROVED SHARE PERFORMANCE FROM BRAND INITIATIVES +20BPS COMBUSTIBLE SHARE GROWTH Share gain driven by Embassy brand Successful launch of new Embassy Signature range in dark market captures 1.8% spot share • Tailored sales activities driven by targeted regional focus • Increased coverage supported by existing advocacy programmes EMBASSY EMBASSY "Signature ~Signature GOLD SILVER 29 Full Year Results | 16 November 2021 Enthan PROTECTION FRESH PROTECT + CE CIGARETS FRESHNESS EMBASSY Embaray QUALITY +10BPS COMBUSTIBLE SHARE GROWTH ● Fumar aumenta el riesgo de ceguera Strong domestic share performance • Share growth across brand portfolio ● Successful rejuvenation of local jewel brands Nobel, Fortuna, Ducados and West brands all gaining share Nobel Fumar aumenta el riesgo de ceguera Nobel Fumar aumenta el riesgo de ceguera Nobel Fumar aumenta el riesgo de ceguera * Nobel IMPERIAL BRANDS 16 SABOR CAPITAL Fortuna 04101- SABOR NUESTRO#30Driving Value From Our Broader Market Portfolio HIGH MARGINS AND CASH FLOWS MAKE VALUABLE CONTRIBUTION GROWING SHARE IN WIDER PORTFOLIO Group tobacco share up 20 bps ● SPOTLIGHT ON OUR AFRICAN PORTFOLIO Strong set of results: +5% volume growth; +20% operating profit growth • Brand portfolio strategy drives upside - Gauloises gains in North Africa markets - Local jewel strategy delivering share growth • Gauloises becomes #1 brand in Morocco • +20% volume growth from Fine brand in Côte d'Ivoire, supported by increased distribution 30 Full Year Results | 16 November 2021 Vive le Moment SA GAULOISES UN MOMENT POUR SOI Vive le Moment GAULOISES LIBERTE TOUJOURS GAULOISES IMPERIAL BRANDS GAULOISES 1016 FILTER Farer page damer provoque des malacies GA- certio vestuves#31Our New NGP Approach Plays To Our Strengths WE ARE TAKING A VERY DIFFERENT CONSUMER-LED APPROACH We are building the foundations for a meaningful NGP business Market Focus Prioritising markets with an established category presence and existing route to market Focused category/ market approach > 31 | Full Year Results | 16 November 2021 Product Approach Differentiated products to provide greater choice to existing consumers iD.c iD PURZE Autorom sance filme y ucis au patze Heated tobacco Marketing-led Investment focused on brand building and consumer communications DEVICE blu GRAPHITE Vapour IMPERIAL BRANDS Investment Need ZONE Cost effective approach reflects our smaller size and our ambition Modern oral nicotine#32Heated Tobacco Trials: Czech Republic and Greece LEVERAGING OUR ROUTE TO MARKET CAPABILITIES iD CZECH REPUBLIC HT category launched 2017 FY21 HT sticks +13% market size v FY20 IMB tobacco market share iD EXCLUSIVELY DESIGNED FOR PULZE RICH BRONZE TRIPLE FLOW FILT **** 15% :PULZE 32 | Full Year Results | 16 November 2021 91% 9% HT % total nicotine consumption* GREECE HT category launched 2016 FY21 HT sticks +32% market size v FY 20 IMB tobacco market share 12% ** 88% IMPERIAL BRANDS 12% HT % total nicotine consumption* *Czech Republic FY21 internal estimate, Greece FY21 Nielsen - sell-out#33Delivering our Heated Tobacco Trials CONSUMER INSIGHT WILL INFORM SCALE AND PACE OF NEXT STEPS Encouraging initial progress Achieved target distribution on trials Good response from trade partners and consumers Will be informed by consumer feedback and repurchase rates 33 Full Year Results | 16 November 2021 SPULZE PULZE PULZE FAMENTA PULZE.CZ QULZE NECO TROCHU JINÉHO ANZE PULZE PULZE NOVINKA PULZE PLZE ZA * IMPERIAL BRANDS PULZE#34US Consumer Trial of Refreshed blu Offer Underway TESTING NEW CONSUMER MARKETING PROPOSITION Out-of-home advertising WARNING: This product contains nicotine. Nicotine is an addictive chemical. Outdoor Pos CHICLE WARNING: This product contains nicotine. Nicoline is an addictive chemical AFLAVOR FOR EVERY MOOD blu GEE ANLE CA 99 99 34 Full Year Results | 16 November 2021 GET UNLIT blu 1262 CADA Indoor Pos blu 99 $699 WARNING: This product contains nicotine Nicotine is an addictive chemical THE FREEDOM TO UNPLUG * Building distribution in focus trial area - Charlotte, North Carolina New consumer marketing approach includes: - Refreshed packaging New marketing campaign Enhanced point of sale presence New on-line sales platform IMPERIAL BRANDS#352022 Will Enhance Our Investment Case CLEAR ACTIONs to improve performance and returNS FY22 PRIORITIES f Increased investment in priority markets NGP targeted trials Embedding new ways of working Continued focus on cash delivery £) Disciplined capital allocation. 35 Full Year Results | 16 November 2021 个 个 个 个 个 * IMPERIAL BRANDS INVESTMENT CASE Revitalised tobacco business driving strong cash returns A disciplined NGP business providing options for potential harm reduction and growth Self-help initiatives deliver operational improvement and strengthen performance Strong sustainable cash flow generated from a high- quality portfolio Progressive dividend supplemented by capital returns at the appropriate time#36FULL YEAR RESULTS 16 NOVEMBER 2021 IMPERIAL BRANDS#37APPENDICES GROUP FINANCIALS FULL YEAR RESULTS | 16 NOVEMBER 2021#38COVID-19 Has Affected Market Dynamics VOLUME MARKET SIZE TRENDS YET TO REVERT TO HISTORICAL NORMS + FY19 -5.5% POSITIVE IMPACT ON MARKET SIZE TREND USA FY20 -1.9% FY21 -2.3% FY19 Germany -3.1% FY20 FY21 0.0% 38 | Full Year Results | 16 November 2021 -0.7% UK FY19 FY20 FY21 7.4% -7.1% 4.6% 0.0% * Spain IMPERIAL BRANDS NEGATIVE IMPACT ON MARKET SIZE TREND Global duty free FY19 FY20 FY21 -3.0% 44 -2.5% -4.1% FY19 FY20 FY21 -50.1% -33.1% Source: Market % numbers show 12-month YOY movement in total sector volumes; Global Duty Free (GDF) shows volume movement in Imperial GDF business#39Net Revenue £7,985m FY20 Net Revenue -£247m £7,738m Premium FY20 Net Cigar Division Revenue excl. divestment 39 Full Year Results | 16 November 2021 -2.9% +4.4% Tobacco Volume 个 +1.5% Tobacco net revenue Tobacco Price/Mix -0.1% -3.9% NGP net revenue NGP Net Revenue +1.4% £7,847m -3.3% Constant Currency * IMPERIAL BRANDS -1.9% £7,589m FY21 Organic Translation FX FY21 Organic Net Revenue#40Adjusted Operating Profit £3,527m FY20 AOP -£31m Premium Cigar Division £3,496m FY20 AOP excl. divestment 40 | Full Year Results | 16 November 2021 £89m £83m +4.8% -£30m Tobacco & NGP Adjusted Operating Profit Europe Africa, Asia and Australasia Americas £26m £3,664m FY21 Distribution AOP Organic AOP (including Constant eliminations) Currency * -£94m Translation FX IMPERIAL BRANDS £3,570m FY21 Organic AOP#41Adjusted Earnings Per Share 254.4p 7.2p FY20 Premium Adjusted EPS Cigar Division 247.2p FY20 Adjusted EPS excl. divestment 41 | Full Year Results | 16 November 2021 17.8p Operating Profit 1.4p +2.8% Interest 1.6p Minorities & JV 10.6p Tax 254.2p Adjusted Constant * FY21 Organic Translation FX Currency EPS 7.7p IMPERIAL BRANDS 246.5p FY21 Organic Adjusted EPS#42Group Organic Adjusted Results Tobacco net revenue NGP net revenue Tobacco & NGP operating profit Tobacco & NGP profit margin Distribution net revenue Distribution operating profit Distribution margin Distribution Eliminations Group adjusted operating profit £m £m £m % £m £m % £m £m 42 | Full Year Results | 16 November 2021 FY20 7,784 201 3,288 41.2% 1,015 226 22.3% 13 3,527 Constant Premium FY20 excl. Foreign Currency Cigars divestment Exchange Growth (247) 7.537 (253) 117 (5) (94) (31) (31) 201 3,257 42.1% 1,015 226 22.3% 13 3,496 (5) (1) 1 (94) (8) 142 59 33 (7) 168 FY21 excl. divestment 7,401 188 * Actual A 7 -1.8% 3,570 -6.4% 258 +14.2% +5.3% 3,305 +1.5% 43.5% +140bps +140bps 1,069 IMPERIAL BRANDS -50.3% Constant Currency A +1.5% +2.1% -3.9% +4.3% 24.1% +180bps +180bps +5.8% +14.8% -50.0% +4.8%#43Group Organic Adjusted Results Group adjusted operating profit Adjusted net finance costs Share of profit of JVs Adjusted profit before tax Adjusted tax rate Adjusted EPS Dividend per share. Cash conversion Adjusted net debt 43 | Full Year Results | 16 November 2021 £m £m £m £m % pence pence % £m FY21* 3,570 (417) 7 3,160 22.6% 246.5 139.08 83% (8,615) * IMPERIAL BRANDS FY20* 3,496 (429) 1 3,068 20.7% 247.2 137.71 127% (10,299) * Organic adjusted results excluding the impact of the Premium Cigar divestment.#44Reconciliation: Reported to Adjusted Fair value (gains) / losses on financial instruments £m Amort. of (unless otherwise Reported acquired Rest. stated) FY21 intangibles costs 3,146 450 257 Operating profit Share of profit of JV Finance costs Profit before tax Tax Profit after tax Minority interest Earnings attributable to equity shareholders 11 81 3,238 (331) 2,907 (73) 2,834 Basic EPS (pence)* 299.9 450 257 (31) (72) 419 185 419 185 44.3 19.6 Profit on Fair value disposal of Excise tax adj. of loan subsidiaries provision receivable (281) (1) (15) 44 | Full Year Results | 16 November 2021 (281) (281) (281) (29.7) (1) (15) (1) (15) (1) (15) (0.1) (1.6) (496) (496) (78) (574) (574) (60.7) Adj. Post attributable to non- employment Tax on net financing unrecognised controlling cost losses interests (2) (2) (1) (3) (3) (0.3) 47 47 47 5.0 (43) (43) (4.6) Tax on disposal of Previously Acquisition Premium unrecognised and disposal Adjusted Cigar Division tax losses costs FY21 (11) (11) (11) (1.2) (239) (239) (239) IMPERIAL BRANDS (25.3) 17 17 17 17 1.8 3,573 11 (417) 3,167 (716) 2,451 (116) 2,335 247.1 * Earnings attributable to equity shareholders excluding divestment of premium cigars division is £2,330m, resulting in EPS of 246.5p.#45Income Statement £m (unless otherwise stated) Revenue Adjusted operating profit Acquisition and disposal costs Amortisation and impairment of acquired intangibles Restructuring costs Excise tax provision Profit on disposal of subsidiaries Fair value adjustment of loan receivable Share of profit of investments accounted for using the equity method Net finance costs Profit before tax Tax Profit after tax Minority interests Basic EPS (pence) Adjusted EPS (pence) 45 Full Year Results | 16 November 2021 FY21 32,791 3,573 (17) (450) (257) 1 281 15 11 81 3,238 (331) 2,907 73 299.9 247.1 治 IMPERIAL BRANDS FY20 32,562 3,527 (26) (523) (205) 20 (62) 45 (610) 2,166 (608) 1,558 63 158.3 254.4 * Including net fair value and exchange gains/losses on financial instruments and post-employment benefits net financing costs#46Balance Sheet £m Non-current assets: tangible intangible inventories Current assets: Current liabilities. Non-current liabilities Net assets other 46 | Full Year Results | 16 November 2021 FY21 4,209 16,674 3,834 4,373 (10,808) (12,342) 5,940 * IMPERIAL BRANDS FY20 Reclassified 4,500 18,160 4.065 5,585 (12,325) (14,467) 5,518#47Cash flow £m Cash flows from operating activities pre tax Tax paid Cash flows from operating activities Purchase of non-current assets Purchase of brands and operations Repurchase of shares Proceeds from sale of non-current assets Net proceeds from sale of subsidiaries Dividends paid (inc. minority interests) Deposit received from sale of asset held for sale Loan to third parties Net interest paid Net cash flow Opening net debt Closing net debt before non-cash movements Non-cash movements Exchange movement Other non-cash movements including revaluation of derivative financial instruments Lease liabilities Transferred to held for disposal Closing net debt after non-cash adjustments 47 | Full Year Results | 16 November 2021 FY21 2,987 (820) 2,167 (200) 50 845 (1,398) (400) 1,064 (11,141) (10,077) 671 59 (26) (9,373) IMPERIAL BRANDS FY20 4,598 (568) 4,030 (302) (146) (92) 28 (1,838) 83 (3) (420) 1,340 (11,970) (10,630) (168) 77 (358) (62) (11,141)#48Net Debt £10.3bn FY20 closing adjusted net debt -£3.8bn £0.7bn EBITDA Working capital 48 | Full Year Results | 16 November 2021 £0.2bn Net capex -£1.1bn £1.2bn £0.2bn Tax & interest Restructuring, pension, other £1.4bn Dividends -£0.8bn Divestment proceeds £9.2bn Adjusted net debt -£1.7bn -£0.6bn Foreign exchange & derivatives IMPERIAL BRANDS £8.6bn FY21 closing adjusted net debt#49Cash Conversion £3.6bn FY21 Organic Adjusted Operating Profit -£0.7bn Working capital 49 Full Year Results | 16 November 2021 £0.3bn 83% Depreciation & amortisation -£0.2bn Capex -£0.1bn * £2.9bn IMPERIAL BRANDS Pension/share Adjusted operating scheme/other cashflow#5012-month Cash Conversion £m (unless otherwise stated) Net cash flow from operating activities Tax Net capex Restructuring cash spend Cash flow post capex pre interest and tax Adjusted operating profit Cash conversion (%) Working capital (outflow) / inflow 50 Full Year Results | 16 November 2021 FY21 2,167 820 (150) 112 2,949 3,573 83% (664) * IMPERIAL BRANDS FY20 4,030 568 (274) 145 4,469 3,527 127% 1,042#51Net Finance Costs £m Net finance income/(costs) Adjusted for: - interest income on net defined benefit assets - interest cost on net defined benefit liabilities - fair value & exchange (losses)/gains on financial instruments Adjusted net finance costs 51 | Full Year Results | 16 November 2021 FY21 81 (89) 87 (496) (417) * IMPERIAL BRANDS FY20 (610) (99) 104 176 (429)#52Net Debt Reconciliation £m Opening net debt Free cash flow Dividends Net proceeds from sale of subsidiaries. Accretion of interest New leases, terminations and modifications Change in fair values Exchange movements Closing net debt 52 | Full Year Results | 16 November 2021 Reported FY21 (11,141) 1,524 (1,305) 845 8 (26) 51 671 (9,373) Accrued interest 156 (16) 140 Fair value of derivatives 387 (20) 367 Lease Liabilities * 299 (48) 251 IMPERIAL BRANDS Adjusted FY21 (10,299) 1,524 (1,305) 845 (8) (26) (17) 671 (8,615)#53Foreign Exchange USD $ EURO € AUD $ Russian Rouble 53 | Full Year Results | 16 November 2021 FY20 1.275 1.139 1.882 88.152 Average FY21 1.369 1.145 1.821 102.069 A +7.3% +0.5% -3.3% + 15.8% FY20 1.283 1.096 1.802 100.588 * Closing FY21 1.346 1.162 1.870 98.012 IMPERIAL BRANDS +4.9% +6.0% +3.8% -2.6%#54Foreign Currency DIVISIONAL CURRENCY EXPOSURE Approximate_weight of currency in Tobacco Net Revenue Europe Americas AAA Approximate weight of currency in Operating Profit Europe Americas AAA Logistics GBP £ 20% 0% 0% GBP £ 30% 0% 0% EUR / EUR Linked 54 | Full Year Results | 16 November 2021 65% 0% 20% EUR / EUR Linked 70% 0% 15% 100% USD $ 0% 100% 15% USD $ 0% 100% 15% AUD $ 0% 0% 20% AUD $ 0% 0% 40% Other Currencies 15% 0% 45% Other Currencies 0% 0% 30% Other includes Polish Zloty, Norwegian Krone Taiwan $, Moroccan Dirham, Russian Rouble Other includes Moroccan Dirham, New Zealand $ ● ● ● ● * IMPERIAL BRANDS €0.01 (1 cent) movement in the € Euro has c. £20m impact on net revenue. $0.01 (1 cent) movement in the $ USD has a c. £22m impact on net revenue. €0.01 (1 cent) movement in the € Euro has a c. £12m impact on PBT. $0.01 (1 cent) movement in the $ USD has a c. £10m impact on PBT Percentages provided are broad guidance only. They are not definitive numbers#55Divisional Market Share MAT MARKET SHARE DATA Europe Americas AAA Total Group FY21 55 Full Year Results | 16 November 2021 19.5% 9.1% 11.0% 14.0% FY20 19.4% 8.9% 10.7% 13.8% * IMPERIAL BRANDS +10bps +20bps +30bps +20bps Market Share Calculation Market share is presented as a 12 month average (MAT). Aggregate market share is a weighted average across markets within our footprint. The sources of market share information by market are continually reviewed to ensure the most accurate data available. Where any changes have been made we have restated (as denoted R) the PY number to ensure comparability#56FY20 Results Pro-Forma REMOVING THE IMPACT OF THE PREMIUM CIGAR DIVESTMENT Volume (Bn SE) Tobacco net revenue (£m) Group Adjusted operating profit (£m) Share of JV profits (£m) Adjusted Profit before tax (£m) Adjusted Earnings (£m) Adjusted EPS (p) 56 Full Year Results | 16 November 2021 FY20 Reported 239.1 7,784 3,527 45 3,143 2,403 254.4 Premium Cigars (0.3) (247) (31) (44) (75) (68) (7.2) * IMPERIAL BRANDS FY20 Restated 238.8 7,537 3,496 1 3,068 2,335 247.2#57FY21 Results Pro-Forma REMOVING THE IMPACT OF THE PREMIUM CIGAR DIVESTMENT Volume (Bn SE) Tobacco net revenue (£m) Group Adjusted operating profit (£m) Share of JV profits (£m) Adjusted Profit before tax (£m) Adjusted Earnings (£m) Adjusted EPS (p) 57 Full Year Results | 16 November 2021 FY21 Reported 231.9 7,422 3,573 11 3,167 2,335 247.1 Premium Cigars (21) (3) (4) (7) (5) (0.6) * IMPERIAL BRANDS FY21 Restated 231.9 7,401 3,570 7 3,160 2,330 246.5#58Settlement Schedule PREMIUM CIGAR DIVESTMENT PROCEEDS Settlement schedule 24th September 2020 7th October 2020 28th October 2020 29th April 2021 29th October 2021 To be confirmed on transfer of Dominican Republic facility Total consideration 58 Full Year Results | 16 November 2021 * IMPERIAL BRANDS EUR (m) 91.7 85.7 640.6 250.0 88.0 69.0 1,225.0#59FY22 Guidance OTHER FINANCIAL ITEMS Impact of premium cigar divestment EPS dilution of 0.6p on FY21 (see slide 18 for full pro-forma) Financing & Cost of Debt Finance charge for FY22 expected to be c.£360m Tax Rate ● ● ● Capex Expect net capex to be c. £300m Cash Conversion ● ● Expected to be c. 24% ● Expect high 90% range Foreign Exchange • Translation FX: broadly FLAT at prevailing FX rates (USD $1.34, EUR €1.17, AUD 1.84) Restructuring costs FY22 cash cost expected at around £230m 59 Full Year Results | 16 November 2021 * IMPERIAL BRANDS#60APPENDICES FINANCING FULL YEAR RESULTS | 16 NOVEMBER 2021#61Financial Profile 30 SEPTEMBER 2021 Interest Split Committed Financing Outstanding (£m) 14,000 12,000 10,000 8,000 6,000 4,000 2,000 32% O 0 Sep 2021 Sep 2022 68% Fixed Floating 61 | Full Year Results | 16 November 2021 Currency Split (adjusted) 23% O -77% EUR USD Committed Funding Split O 23% Sep 2023 Sep 2024 Sep 2025 Sep 2026 Sep 2027 Sep 2028 Sep 2029 Sep 2030 * 77% Bonds Bank £3.6bn headroom against facilities Bond Issues Bank Facilities IMPERIAL BRANDS Sep 2031 Sep 2032#62Committed Bank Facilities 30 SEPTEMBER 2021 Description Committed 3-year Revolving Credit Facility Total 62 | Full Year Results | 16 November 2021 Maturity date 30 September 2024 Amount (EUR m) 3,500 * IMPERIAL BRANDS £m equiv. 3,012 3,012#63Bond Issues 30 SEPTEMBER 2021 Currency of issue GBP USD USD EUR GBP USD EUR USD EUR USD GBP EUR USD GBP EUR Amount (ccy m) 1,000 1,250** 1,000 750 600 1,000 500 1,500 650 750 500 750 1,000 500 1,000 Issuer Imperial Brands Finance PLC Imperial Brands Finance PLC Imperial Brands Finance PLC Imperial Brands Finance PLC Imperial Brands Finance PLC Imperial Brands Finance PLC Imperial Brands Finance PLC Imperial Brands Finance PLC Imperial Brands Finance PLC Imperial Brands Finance PLC Imperial Brands Finance PLC Imperial Brands Finance PLC Imperial Brands Finance PLC Imperial Brands Finance PLC Imperial Brands Finance Netherlands BV Total/Weighted Average Margin 63 Full Year Results | 16 November 2021 Coupon 9.00% 3.75% 3.50% 1.13% 8.13% 3.13% 1.38% 4.25% 3.38% 3.50% 5.50% 2.13% 3.88% 4.88% 1.75% Issue Date Feb-09 Jul-15 Feb-13 Feb-19 Sep-08 Jul-19 Jan-17 Jul-15 Feb-14 Jul-19 Sep-11 Feb-19 Jul-19 Feb-14 Mar-21 Maturity Date Feb-22 Jul-22 Feb-23 Aug-23 Mar-24 Jul-24 Jan-25 Jul-25 Feb-26 Jul-26 Sep-26 Feb-27 Jul-29 Jun-32 Mar-33 * £m equiv. 1,026 743 645 664 773 430 1,115 559 580 554 645 743 539 861 9,877 IMPERIAL BRANDS Margin* 4.83% 1.13% 1.25% 3.10% 1.20% 1.00% 2.22% 1.45% 1.52% 2.72% 1.83% 1.97% 2.12% 1.76% 2.1% * Above respective final currency IBOR rate after the effects of related interest rate derivative transactions ** Bond defeased and discharged#64Glossary SE Constant Currency Tobacco NGP Logista * Stick Equivalent (SE) volumes reflect our combined cigarette, fine cut tobacco, cigar and snus. volumes. Change at constant currency removes the effect of exchange rate movements on the translation of the results of our overseas operations. IMPERIAL BRANDS Total Tobacco includes cigarettes, fine cut tobacco, cigar, traditional snus and other tobacco products. NGP includes vapour products, next generation oral nicotine including all-white oral snus 64 | Full Year Results | 16 November 2021 Logista is a 50.01% owned subsidiary and publicly listed on the Spanish stock exchanges. It is one of the largest logistics businesses in Europe, with operations extending across Spain, France, Italy, Portugal and Poland.