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IMPERIAL BRANDS PLC FULL YEAR RESULTS STATEMENT 16 NOVEMBER 2021 IMPERIAL BRANDS A YEAR OF GOOD RESULTS WHILE BUILDING FOUNDATIONS FOR FUTURE GROWTH Report for the year ended 30 September 2021 Business Highlights • • Transformation programme underway to create more consumer - focused , efficient and performance - driven organisation Operational improvements supporting growth in net revenue , profit and free cash flow Sharper focus on top - five priority markets beginning to arrest long - term share declines • NGP pilots in heated tobacco and vapour on track • Strong cash flows enabling deleverage progress in line with our plans Financial Summary Year ended 30 September 2021 Reported Organic adjusted² Constant 2021 2020 Change 2021 2020 Actual currency³ Revenue / Net revenue¹ £ m 32,791 32,562 + 0.7 % 7,589 7,738 -1.9 % + 1.4 % Operating profit £ m 3,146 2,731 + 15.2 % 3,570 3,496 + 2.1 % + 4.8 % Basic earnings per share pence 299.9 158.3 + 89.5 % 246.5 247.2 -0.3 % + 2.8 % Free cash flow £ m 1,524 3,248 -53.1 % 1,524 3,248 -53.1 % Net debt £ m ( 9,373 ) ( 11,141 ) ( 8,615 ) ( 10,299 ) Dividend per share pence 139.08 137.7 + 1.0 % 139.08 137.7 + 1.0 % + 1.0 % 1 Reported revenue includes duty , similar items , distribution and sale of peripheral products which are excluded from net revenue ; net revenue comprises reported revenue less duty and similar items , excluding sale of peripheral products and distribution revenue . 2 See page 3 for basis of presentation , page 28 and notes 3 , 6 and 10 of the financial statements for the reconciliation between reported and adjusted measures . For comparison purposes , the Group uses the term " organic " to exclude the contribution of the Premium Cigar Division , which was divested on 29 October 2020 . 3 Constant currency removes effect of exchange rate movements on the translation of the results of our overseas operations . Stefan Bomhard Chief Executive " This has been a year of important progress and significant change , as we begin to deliver on the new , focused strategy we announced in January 2021. We have substantially refreshed our leadership team , making new hires to strengthen our consumer - facing capabilities , while building on our existing deep tobacco experience . We have changed the way we work , placing the consumer at the centre of our decision making . We have simplified the organisation , creating efficiencies for reinvestment . And we have introduced more rigorous performance management , enabling better prioritisation of resources . " This approach is already delivering improved operational and financial outcomes . In tobacco , our sharper focus and increased investment in the top - five priority markets have begun to stabilise the aggregate market share performance . This is encouraging early progress in addressing the long - term historical declines . We will build on this foundation in the coming year , with further investment in brand building and sales execution . " Through our focused , consumer - led next generation products strategy , we are committed to making a meaningful contribution to harm reduction over time by offering adult smokers potentially reduced risk products . In line with our plans , we launched market trials for our heated tobacco proposition , Pulze and iD sticks in the Czech Republic and Greece , as well as a trial of an improved consumer marketing proposition for our US vapour product , blu . We will track the consumer data over the coming months to inform our next steps . " Our five - year plan to transform Imperial is divided into two distinct periods . The year ahead will complete the two- year strengthening phase , with further investment in our five priority markets and NGP pilots , the embedding of new ways of working and cost - saving initiatives . This period builds the foundations for the subsequent three - year phase , which focuses on the acceleration of returns and sustainable growth in shareholder value . " Page 1 of 87