AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Imperial Brands PLC

Annual Report Jun 19, 2020

4759_10-k_2020-06-19_e936b5d3-71a7-46cd-b304-a0da783a8625.pdf

Annual Report

Open in Viewer

Opens in native device viewer

Company Number : 01860181

IMPERIAL TOBACCO LIMITED

For the year ended 30 September 2019 Annual Report and Financial Statements

Company Information

Directors J M Downing
O R Tant
T R W Tildesley
M A Wall
Company Secretary T M Williams
Registered Number 01860181
Registered Office 121 Winterstoke Road
Bristol
BS3 2LL
Independent Auditors PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
2 Glass Wharf
Bristol
BS2 0FR
United Kingdom

Strategic Report

The Directors present their Strategic Report together with the Directors' Report and audited financial statements of Imperial Tobacco Limited (the Company) for the year ended 30 September 2019.

Review of the business

The principal activity of the Company is the marketing and sale of tobacco, tobacco-related and next generation products. The Company is also a holding company and intermediate parent company for the majority of the operating subsidiaries of the Imperial Brands PLC Group (the Group).

The Company is a wholly owned indirect subsidiary of Imperial Brands PLC, which is the ultimate parent company within the Group. The Company results incorporate both the UK trading of the Group and the head office functions, with key performance indicators being focussed on the UK market trading. Key performance indicators used by management to monitor the UK trading element only are detailed below.

2019 2018 Movement
Market share (%) 40.2% 42.1% -189bps
Net revenue (£m) 570 593 -4%
Operating profit (£m) 405 372 9%

Year on year volumes have declined 1.7 billion stick equivalents. This is mainly due to a reduction in market size of 6.7 percent driven largely by factory manufactured cigarettes, partially offset by size growth within fine cut tobacco. Share has also declined over the same period resulting in volume reduction of 500 million stick equivalents coming from sub-economy and mid-priced brands.

Net revenue comprises tobacco revenue less duty and similar items, excluding peripheral products. In addition to the UK trading revenue of £3,933 million (2018: £4,144 million), the Company recognised £277m (2018: £288 million) licence fee income and £18 million (2018: £13 million) revenue from NGP products.

In addition to tobacco operating profit of £405 million (2018: £372 million) for the UK trading business, the Company recognised operating income in respect of licence fees and head office royalties. These are offset by an operating loss in the NGP business of £23 million (2018: £11 million) and impairment of investments of £2,630 million (2018: £13,321 million).

The principal risks and uncertainties of the Company, are considered to be the following:-

  • Economic pressures on the consumption of tobacco products;
  • Change in consumer trends;
  • Tobacco product regulation; and
  • Litigation.

These risks, and mitigating actions taken by the Company, are detailed on pages 33-39 of the Group's Annual Report which does not form part of this report, but is available at www.imperialbrandsplc.com

In the normal course of business, the Group is exposed to market, liquidity and credit risk. The Group's financial risk management policy is discussed in the Financial Risk Factors section of the Group's Annual Report, which does not form part of this report.

The operating subsidiaries of the Company are shown at the end of this report. The Company operates an overseas branch in France.

Strategic Report

Financial results

The results for the Company show profit for the financial year of £643 million (2018: loss of £63 million), operating loss of £1,936 million (2018: £12,784 million) and revenue of £4,228 million (2018 restated: £4,445 million). Total equity at 30 September 2019 is £14,510 million (2018: £13,902 million).

The Directors do not propose a final dividend (2018: £nil). The aggregate dividends on the ordinary shares recognised as a charge to the Statement of Changes in Equity during the year amounts to £nil (2018: £6,000 million).

Future Developments

The Company believes it is well placed to continue in its market leading position in the UK due to its broad product and brand portfolio and the initiatives in the value and economy cigarette, fine cut tobacco and next generation product (NGP) sectors. This, along with the Company's continued commitment to drive sales growth by ensuring that the Company's brand and products evolve in line with changing consumer dynamics, should provide further opportunities to grow operating profits. The Company holds investments in the Group's trading entities, providing substantial dividend income annually.

Brexit

The UK formally exited from the European Union on 31 January 2020, and entered into a transition trading arrangement until 31 December 2020. The Company has looked into the potential impacts of different trading arrangements that may exist after the transition arrangements expire. The key risks that have been identified include potential increase in import duties and impact on UK customers; additional risk of tobacco smuggling, inventory requirements to ensure supply and impact on consumer confidence. In the event of no trade deal being in place by 31 December, we estimate there could be potential additional costs of around £50 million relating to possible import duties and additional stock holding.

Employees

The Company's employment policies aim to attract, retain, train and motivate the very best people, recognising that this can be achieved only through offering equal opportunities and giving fair consideration to applications for employment, career development and promotion without having regard to an employee's gender, race, religion, age or disability. These policies also cover the continuation of employment and appropriate training for employees who become disabled during their employment.

To ensure employees can share in our success, the Company offers competitive pay and benefit packages linked, wherever possible, to performance. Employees are encouraged to build an ownership stake in Imperial Brands PLC shares, with a number of employee share plans offered during the year.

Strategic Report

Employees (continued)

The Company is committed to providing an environment that encourages the continuous development of all its employees through skills enhancement and training programmes.

Employees are kept aware of the financial and economic factors affecting the performance of the Company. The Company provides employees systematically with information on matters of concern to them, and consults employees or representatives on a regular basis so views of employees are taken into account when making decisions. To progress this aim further employee representatives are briefed on pan-European issues through the Imperial Tobacco European Employee Works Council.

Information concerning employees and their remuneration is given in note 6 to the financial statements.

COVID-19

In March 2020 the Imperial Brands Group was impacted by the global Coronavirus (Covid-19) pandemic, which resulted in unprecedented government restrictions on the normal operations of the Group across many countries. The restrictions put in place initially resulted in a number of office and factory closures. The Group has responded by adapting working practices through activities such as strengthening our IT infrastructure and accelerating the roll-out of software to facilitate remote team-working, as well as encouraging a more flexible approach. There have been modifications to working practices including changing shift patterns to ensure appropriate infection controls and social distancing for employees in manufacturing facilities. As a result of this, manufacturing plants have continued to operate and the Group is able to both produce and distribute product to customers to meet demand, while complying with all necessary safety precautions to protect staff and business partners from the risks arising from the pandemic.

As the pandemic commenced in 2020 this represents a non adjusting post balance sheet event with regards to the financial statements of the Company for the year ending 30 September 2019.

To date, the observable impacts on the Company's activities have been limited to low level changes in credit risk in the duty free and travel retail operations area. The Company is not aware of any post year end impairments to its investments specifically associated with the impact of the pandemic.

A review of the key financial assumptions relating to the Company's defined benefit pension scheme subsequent to the balance sheet date indicates that the fair value of plan assets is expected to be volatile in the short term due to uncertain market conditions.

On behalf of the Board

T R W Tildesley Director 15 June 2020

Directors' Report

The Directors submit their report together with the Strategic Report and audited financial statements of the Company for the year to 30 September 2019.

Future developments and going concern

Future developments are set out in the Strategic Report.

The Directors are satisfied that the Company has adequate resources to meet its operational needs for the foreseeable future. The Company has net current liabilities of £9,002 million as at 30 September 2019, including £8,917 million relating to intra-group payables and receivables. The Directors of the Company have assurances of unconditional committed financial support from Imperial Brands PLC, the ultimate parent company, and that this will continue for at least 12 months from the date of signing of the financial statements. Therefore the Directors continue to adopt the going concern basis in preparing the financial statements.

Financial risk management policy

Financial risk management policies are detailed in the Strategic Report.

Share capital

Details of the Company's share capital are shown in note 20 to the financial statements.

Dividends

As set out in the Strategic Report, the Directors do not propose a final dividend (2018: £nil). No interim dividends have been paid (2018: £318.62 per ordinary share amounting to £6,000 million).

Qualifying third party indemnity provisions

Imperial Brands PLC has purchased Directors' and Officers' liability insurance that has been in force during the financial year and is currently in force at the date of approval of these financial statements. The Directors of the Company have the benefit of this insurance, which is a qualifying third party indemnity provision as defined by the Companies Act 2006.

Directors

The Directors of the Company who were in office during the year and up to the date of signing the financial statements were:

J M Downing O R Tant T R W Tildesley M A Wall

Employees

The Company's policy on involving UK employees in its affairs is set out in the Strategic Report.

Branches outside the UK

The Company operates an overseas branch in France.

Directors' Report

Statement of Directors' responsibilities in respect of the financial statements

The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 101 'Reduced Disclosure Framework', and applicable law).

Under Company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing the financial statements, the Directors are required to:

  • select suitable accounting policies and then apply them consistently;
  • state whether applicable United Kingdom Accounting Standards, comprising FRS 101, have been followed, subject to any material departures disclosed and explained in the financial statements;
  • make judgements and accounting estimates that are reasonable and prudent; and
  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006.

Directors' confirmations

In the case of each Director in office at the date the Directors' Report is approved:

  • so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Independent Auditors

A decision to tender the audit was made by the Board of Imperial Brands PLC and due to the length of its tenure our auditor PricewaterhouseCoopers LLP was not invited to participate. In February 2019 the Board of Imperial Brands PLC made a decision to appoint Ernst & Young as auditor. PricewaterhouseCoopers LLP will resign following the completion of the audit of these financial statements allowing the new auditors to be appointed.

On behalf of the Board

T R W Tildesley Director 15 June 2020

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IMPERIAL TOBACCO LIMITED

Report on the audit of the financial statements

Opinion

In our opinion, Imperial Tobacco Limited's financial statements:

  • give a true and fair view of the state of the Company's affairs as at 30 September 2019 and of its profit for the year then ended;
  • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 101 "Reduced Disclosure Framework", and applicable law); and
  • have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements, included within the Financial Statements (the "Annual Report"), which comprise: the Balance Sheet as at 30 September 2019; the Income Statement, the Statement of Comprehensive Income and the Statement of Changes in Equity for the year then ended; and the notes to the financial statements, which include a description of the significant accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) ("ISAs (UK)") and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remained independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which ISAs (UK) require us to report to you where:

  • the Directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
  • the Directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Company's ability to continue as a going concern.

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements and our auditors' report thereon. The Directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IMPERIAL TOBACCO LIMITED

Report on the audit of the financial statements (continued)

Reporting on other information (continued)

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.

With respect to the Strategic Report and Directors' Report, we also considered whether the disclosures required by the UK Companies Act 2006 have been included.

Based on the responsibilities described above and our work undertaken in the course of the audit, ISAs (UK) require us also to report certain opinions and matters as described below.

Strategic Report and Directors' Report

In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic Report and Directors' Report for the year ended 30 September 2019 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.

In light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we did not identify any material misstatements in the Strategic Report and Directors' Report.

Responsibilities for the financial statements and the audit

Responsibilities of the Directors for the financial statements

As explained more fully in the Statement of Directors' responsibilities in respect of the financial statements, the Directors are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The Directors are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the FRC's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IMPERIAL TOBACCO LIMITED

Report on the audit of the financial statements (continued)

Use of this report

This report, including the opinions, has been prepared for and only for the Company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Other required reporting

Companies Act 2006 exception reporting Under the Companies Act 2006 we are required to report to you if, in our opinion:

  • we have not received all the information and explanations we require for our audit; or
  • adequate accounting records have not been kept by the Company, or returns adequate for our audit have not been received from branches not visited by us; or
  • certain disclosures of Directors' remuneration specified by law are not made; or
  • the financial statements are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.

Richard French (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Bristol 15 June 2020

Income Statement

For the year ended 30 September

2018
(In £ million) Note 2019 Restated (1)
Revenue 4 4,228 4,445
Duty and similar items (3,363) (3,590)
Other cost of sales (125) (133)
Cost of sales (3,488) (3,723)
Gross profit 740 722
Distribution, advertising and selling costs (139) (114)
Impairment of investments 5 (2,630) (13,321)
Restructuring costs 5 (22) (36)
UK distributor exceptional 5 - (110)
Profit on disposal of buildings - 40
Other administrative income 115 35
Administrative and other expenses 93 (71)
Operating loss 5 (1,936) (12,784)
Income from shares in group undertakings 2,931 13,111
Finance income 7 23 43
Finance costs 8 (305) (367)
Other finance income - pensions 17 10
Net finance costs (265) (314)
Profit before taxation 730 13
Tax on profit 9 (87) (76)
Profit/(loss) for the financial year 643 (63)

(1) See note 2 Accounting Policies for details of the restatement in respect of the year ending 30 September 2018.

Statement of Comprehensive Income

For the year ended 30 September

(In £ million) Note 2019 2018
Profit/(loss) for the financial year 643 (63)
Other comprehensive (expense)/income
Exchange movements (3) 18
Items that may be reclassified to profit and loss (3) 18
Actuarial (loss)/gain on pension scheme 19 (65) 155
Deferred tax relating to actuarial movement on pension scheme 11 (26)
Items that will not be reclassified to profit and loss (54) 129
Other comprehensive (expense)/income for the year, net of tax (57) 147
Total comprehensive income for the year 586 84

Balance Sheet

At 30 September

(In £ million) Note 2019 2018
Fixed assets
Intangible assets 11 61 55
Investments 12 23,523 23,746
Property, plant and equipment 13 17 16
23,601 23,817
Current assets
Retirement benefit assets - amounts falling due after more than one year 19 536 522
Inventories 14 34 60
Debtors: amounts falling due within one year 15 435 342
Cash at bank and in hand 11 12
1,016 936
Creditors: amounts falling due within one year 16 (10,018) (10,765)
Net current liabilities (9,002) (9,829)
Total assets less current liabilities 14,599 13,988
Provisions for liabilities 17 (6) (10)
Deferred tax liabilities 18 (83) (76)
Net assets 14,510 13,902
Equity
Called up share capital 20 19 19
Share premium account 11,620 11,620
Retained earnings 2,871 2,263
Total equity 14,510 13,902

The notes on pages 14 to 64 are an integral part of these financial statements.

The financial statements on pages 10 to 64 were approved by the Board of Directors on 15 June 2020 and signed on its behalf by:

Director Director

Company Number : 01860181

O R Tant T R W Tildesley

Statement of Changes in Equity

For the year ended 30 September

Called up Share premium Capital Retained
(In £ million) share capital account reserves earnings Total equity
At 30 September 2018 19 11,620 - 2,263 13,902
IFRS 9 Transition - - - (1) (1)
At 1 October 2018 19 11,620 - 2,262 13,901
Profit for the financial year - - - 643 643
Exchange movements - - - (3) (3)
Actuarial expense on pension scheme - - - (65) (65)
Deferred tax relating to actuarial
movement on pension scheme - - - 11 11
Other comprehensive expense - - - (57) (57)
Total comprehensive income - - - 586 586
Transactions with owners
Costs of employees' services
compensated by share schemes - - - 23 23
At 30 September 2019 19 11,620 - 2,871 14,510
At 1 October 2017 19 15,620 - 4,154 19,793
Loss for the financial year - - - (63) (63)
Exchange movements - - - 18 18
Actuarial gain on pension scheme - - - 155 155
Deferred tax relating to actuarial
movement - - - (26) (26)
Other comprehensive income - - - 147 147
Total comprehensive income - - - 84 84
Transactions with owners
Costs of employees' services
compensated by share schemes - - - 25 25
Share premium reduction - (4,000) 4000 - -
Dividends paid - - (4,000) (2,000) (6,000)
At 30 September 2018 19 11,620 - 2,263 13,902

Notes to the Financial Statements

1. Authorisation of financial statements and statement of compliance with FRS101

The financial statements of the Company for the year ended 30 September 2019 were authorised for issue by the board of directors on 15 June 2020, and the balance sheet was signed on the board's behalf by O R Tant and T R W Tildesley. Imperial Tobacco Limited is a private company limited by shares incorporated and domiciled in the United Kingdom and registered in England and Wales.

These financial statements were prepared in accordance with the Companies Act 2006, Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and applicable accounting standards.

The Company's financial statements are presented in Sterling and all values are rounded to the nearest million pounds (£m) except when otherwise indicated.

The Company has taken advantage of the exemption under s400 of the Companies Act 2006 not to prepare group financial statements as it is a wholly owned subsidiary of Imperial Brands PLC, registered in the United Kingdom. The results of the Company are included in the consolidated financial statements of Imperial Brands PLC which are available from 121 Winterstoke Road, Bristol, BS3 2LL or on its website www.imperialbrandsplc.com.

2. Accounting policies

Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Companies Act 2006 as applicable to Companies using Financial Reporting Standard 101 'Reduced Disclosure Framework' (FRS 101), and FRS 101 as issued by the Financial Reporting Council, on a going concern basis. The financial statements have been prepared consistently during the current and preceding year, except for newly applicable standards.

The financial statements have been prepared on the historical cost basis, except as described in the accounting policies on foreign currency and investments below. Historical cost is generally based on the fair value of the consideration given in exchange for the assets.

The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the period and of assets and liabilities at the balance sheet date. The key estimates and assumptions are set out in note 3 Critical Accounting Estimates and Judgements. Such estimates and assumptions are based on historical experience and various other factors that are believed to be reasonable in the circumstances and constitute management's best judgement at the date of the financial statements. In the future, actual experience may deviate from these estimates and assumptions. This could affect future financial statements as the original estimates and assumptions are modified, as appropriate, in the year in which the circumstances change.

Going concern

The Directors are satisfied that the Company has adequate resources to meet its operational needs for the foreseeable future. The Company has net current liabilities of £9,002 million as at 30 September 2019, including £8,917 million relating to intra-group payables and receivables. The Directors of the Company have assurances of unconditional committed financial support from Imperial Brands PLC, the ultimate parent company, and that this will continue for at least 12 months from the date of signing of the financial statements. Therefore the Directors continue to adopt the going concern basis in preparing the financial statements.

Notes to the Financial Statements

2. Accounting policies (continued)

Basis of preparation of financial statements (continued)

As permitted by FRS 101, the Company has taken advantage of the disclosure exemptions available in the preparation of the financial statements, as detailed below:

  • Paragraph 38 of IAS 1 'Presentation of financial statements' - comparative information requirements in respect of:
    • (i) paragraph 79(a)(iv) of IAS 1;
    • (ii) paragraph 73(e) of IAS 16 'Property, plant and equipment'; and
    • (iii) paragraph 118(e) of IAS 38 'Intangible assets' - reconciliations between the carrying amount at the beginning and end of the period;
  • The following paragraphs of IAS 1 'Presentation of financial statements':
    • (i) 10(d) - statement of cash flows;
    • (ii) 10(f) - a statement of financial position as at the beginning of the preceding period when an entity applied an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements;
    • (iii) 16 - statement of compliance with all IFRS;
    • (iv) 38A - requirement for minimum of two primary statements, including cash flow statements;
    • (v) 38B-D - additional comparative information;
    • (vi) 40A-D - requirements for a third statement of financial position;
    • (vii) 111 - cash flow information; and
    • (viii) 134-136 - capital management disclosures;
  • IAS 7 'Statement of cash flows';
  • Paragraph 30 and 31 of IAS 8 'Accounting Policies, changes in accounting estimates and errors' - requirement for the disclosure of information when an entity has not applied a new IFRS that has been issued but is not yet effective;
  • Paragraph 17 of IAS 24 'Related party disclosures' - key management compensation;
  • so far as the Director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • IFRS 7 'Financial Instruments: Disclosures'.

New accounting standards and interpretations

The Company has adopted IFRS 9 'Financial Instruments' and IFRS 15 'Revenue from Contracts with Customers' with effect from 1 October 2018. The detail of adoption is provided below. There have been no other new standards or amendments which became effective for the current reporting period that have had a material effect on the Company.

On 1 October 2018 the Company adopted IFRS 9 'Financial Instruments', with no revision of prior periods as permitted by the standard. IFRS 9 has replaced IAS 39 'Financial Instruments: Recognition and Measurement' and includes revised guidance on:

Classification and measurement: Financial assets are now classified as either being accounted for as amortised cost, fair value through other comprehensive income, or fair value through profit or loss. There are no changes to the classification or accounting for financial liabilities. Other than trade receivables, the Company does not currently hold any significant financial assets.

Notes to the Financial Statements

2. Accounting policies (continued)

New accounting standards and interpretations (continued)

The Company has revised the classification of certain trade receivables which are subject to a non-recourse factoring arrangement. This arrangement covers various customer accounts. Prior to the adoption of IFRS 9 all trade receivables were recognised at amortised cost. Where trade receivables may be sold in the future under a factoring arrangement that involves realising cash flows through the sale of assets in order to manage customer credit risk, they are now classified as fair value through other comprehensive income (OCI). Under this classification, valuation changes are recognised in the OCI. The level of trade receivables that were sold to a financial institution under a nonrecourse factoring arrangement totalled £325 million at 1 October 2018 and £345 million at 30 September 2019. The total value of trade receivables reclassified as fair value through OCI was £10 million at 1 October 2018 and £19 million at 30 September 2019. On adoption of the standard there was no valuation difference and therefore the OCI has not been impacted. Trade receivables managed under a "hold to collect" business model continue to be measured at amortised cost.

The Company does not undertake any supply chain financing activity.

Impairment of financial assets: Impairment provisions are calculated using a forward looking expected credit loss approach for financial assets, rather than the incurred loss approach applicable under IAS 39. The expected credit loss model requires the recognition of a provision which reflects future impairment risk. Provision levels are calculated on the residual credit risk after consideration of any credit protection which is used by the Company.

Under the revised Trade Receivables provisioning policy, expected future credit loss provisions are now recognised in addition to doubtful debt provisions on receivables which have already become overdue. With the exception of the Palmer and Harvey debt write-off in 2018, the Company has historically experienced low levels of credit default. On adoption of the standard the Company has recognised an additional expected credit loss provision of £1 million, with the costs being recognised directly in equity within the retained earnings reserve at 1 October 2018.

Hedge Accounting: IFRS 9 aligns the accounting approach with an entity's risk management strategies and risk management objectives. The Company has adopted the hedge accounting aspects of IFRS 9 prospectively from 1 October 2018. The Company continues to apply net investment hedging as part of its risk management approach. All hedging relationships that existed at 30 September 2018 continue to apply under IFRS 9. The adoption of this area of IFRS 9 has not had any significant impact on the financial statements.

On 1 October 2018 the Company adopted IFRS 15 'Revenue from Contracts with Customers', the Company has restated prior periods as permitted by the standard. IFRS 15 has introduced an amended framework for revenue recognition and has replaced the prior guidance in IAS 18 'Revenue'. The accounting policies have been revised and applied to both the current and prior period. The standard provides revised guidance on revenue accounting, matching income recognition to the delivery of performance obligations in contractual arrangements for the provision of goods or services. It also provides different guidance on the measurement of revenue contracts involving discounts, rebates and payments to customers.

Notes to the Financial Statements

2. Accounting policies (continued)

New accounting standards and interpretations (continued)

IFRS 16 'Leases' will be effective for the period beginning 1 October 2019. The new standard requires operating leases to be accounted for through the recognition of a 'right of use asset' and a corresponding lease liability. Interestbearing borrowings and non-current assets will increase on implementation of this standard. Operating lease costs will no longer be classified within the income statement based on amounts paid, but via a 'right of use asset' depreciation charge recognised within operating profit and a lease interest expense within finance costs. The Company will take advantage of the practical expedients under the standard by not applying IFRS16 to short terms leases (Leases of less than 12 months maximum term) and to leases of low-value assets.

As permitted by the standard, the Company will apply the modified retrospective approach with no restatement of prior year. On adoption of IFRS 16 the expected impact is approximately £42 million increase in non-current assets and £42 million increase in liabilities.

IFRIC 23 'Uncertainty over income tax treatments' will be effective, subject to EU endorsement, for the period beginning 1 October 2019. The Interpretation clarifies how to apply the recognition and measurement requirements in IAS 12 when there is uncertainty over income tax treatments. The adoption of this interpretation is not expected to have a material effect on the Company's net assets or results.

Year ended 30 September 2018
Previously IFRS 15
(In £ million) reported adjustment Restated
Revenue 4,485 (40) 4,445
Duty and similar items (3,590) - (3,590)
Net revenue 895 (40) 855
Other cost of sales (133) - (133)
Gross profit 762 (40) 722
Distribution, advertising and selling costs (154) 40 (114)
Impairment of investments (13,321) - (13,321)
Administrative and other expenses (71) - (71)
Operating loss (12,784) - (12,784)

Prior year re-statements required following accounting standard adoption

Foreign currency

Monetary assets and liabilities denominated in foreign currencies are translated into pound sterling at the rates of exchange ruling at the balance sheet date.

Transactions in currencies other than pound sterling are initially recorded at the exchange rate ruling at the date of the transaction. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at exchange rates ruling at the balance sheet date of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement with exchange differences arising on trading transactions being reported in operating profit, and those arising on financing transactions being reported in net finance costs.

Notes to the Financial Statements

2. Accounting policies (continued)

Foreign currency (continued)

The carrying amounts of foreign currency investments are translated at the rates of exchange ruling at the balance sheet date and resulting exchange differences are offset against exchange gains or losses on the translation of intragroup borrowings in reserves, through the Statement of Comprehensive Income.

The Company holds fair value hedges against certain investments. Gains or losses on these hedges, that are regarded as highly effective, are taken to the income statement, where they offset gains or losses on translation of the investments within net finance income / costs.

Revenue

Revenue comprises the invoiced value for the sale of goods and services net of sales taxes, rebates and discounts. Revenue is based on the completion of performance obligations that constitute the delivery of goods and completion of services. The performance obligation is recognised as complete at the point in time when a Group company has delivered products to the customer, the customer has accepted the products and collectability of the related receivables is reasonably assured. Performance obligations associated with services, which include fees for distributing certain third party products, are linked to the delivery of those services. Income arising from the licencing or sale of intellectual property, occurring in the ordinary course of business, is treated as revenue. Licencing revenue will be recognised over the period of the licence while revenue is recognised immediately on the sale of intellectual property where that represents a long-term right to use the asset.

Payments are made to both direct and indirect customers for rebates, discounts and other promotional activities. Direct customers are those to which the Group supplies goods or services. Indirect customers are other entities within the supply chain to the end consumer. Rebates and discounts are deducted from Revenue. Payments for promotional activities will also be deducted from Revenue where the payments relate to goods or service that are closely related to or indistinct from associated sales of goods or services to that customer. The calculated costs are accrued and accounted for as incurred and matched as a deduction from the associated revenues (i.e. excluded from revenues reported in the Group's consolidated income statement).

Duty and similar items

Duty and similar items includes duty and levies having the characteristics of duty. As the duty is a production tax, duty is included in revenue and in cost of sales in the income statement.

Income from subsidiary

Dividend income from subsidiary entities is recognised in the period in which the right to receive payment is established.

Interest

Interest payable and receivable is recognised in the income statement on an accrual basis.

Taxes

The tax expense for the year comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in shareholders' funds. In this case, the tax is also recognised in other comprehensive income or directly in the shareholders' funds, respectively.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustments to tax payable in respect of previous periods.

Notes to the Financial Statements

2. Accounting policies (continued)

Taxes (continued)

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date.

A net deferred tax asset is recognised only to the extent that it is probable that future taxable profit will be available against which the asset can be utilised.

Deferred tax is determined using tax rates that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled. Deferred tax is measured on a non-discounted basis.

Dividends

Final dividends are recognised as a liability in the period in which the dividends are approved by shareholders, whereas interim dividends are recognised in the period in which the dividends are paid.

Intangible assets

Intangible assets are shown in the balance sheet at historical cost less accumulated amortisation and impairment. Costs incurred after initial recognition are included in the assets' carrying amounts or recognised as a separate asset as appropriate only when it is probable that future economic benefits associated with them will flow to the Company and the cost of the item can be measured reliably.

Intangible assets comprise software and intellectual property. Intangible assets are amortised so as to write down the initial costs of each asset to its residual value on a straight line basis over its estimated useful life of between 3 and 10 years.

Investments

Investments held as fixed assets comprise the Company's investment in subsidiaries and are predominantly shown at historic purchase cost less any provision for impairment. The exception is when a fair value hedge is in place whereby the investment is revalued at the rate prevailing at the period end, with any foreign exchange movement taken to the net finance income / costs.

Impairment of Investments

Investments are tested for impairment annually to ensure that the carrying value of the investment is supported by their underlying net assets.

Property, plant and equipment

Property, plant and equipment are shown in the balance sheet at historical cost less accumulated depreciation and impairment. Costs incurred after initial recognition are included in the assets' carrying amounts or recognised as a separate asset as appropriate only when it is probable that future economic benefits associated with them will flow to the Company and the cost of the item can be measured reliably.

Land is not depreciated. Depreciation is provided on other property, plant and equipment so as to write down the initial cost of each asset to its residual value over its estimated useful life as follows:

Land and buildings up to 50 years straight line
Plant and machinery 5 - 17 years straight line / reducing balance
Fixtures and motor vehicles 3 - 4 years straight line

Notes to the Financial Statements

2. Accounting policies (continued)

Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the first in first out (FIFO) method. The cost of finished goods comprises raw materials, direct labour, other direct costs and related production overheads (based on normal operating capacity). Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

Provisions

A provision is recognised in the balance sheet when the Company has a legal or constructive obligation as a result of a past event, it is more likely than not that an outflow of resources will be required to settle that obligation, and a reliable estimate of the amount can be made.

A provision for restructuring is recognised when the Company has approved a detailed formal restructuring plan, and the restructuring has either commenced or has been publicly announced, and it is more likely than not that the plan will be implemented, and the amount required to settle any obligations arising can be reliably estimated. Future operating losses are not provided for.

Financial Instruments

Following the adoption of IFRS 9, the Group's accounting policies for financial instruments and hedging remain the same as disclosed in the 30 September 2018 annual report and accounts, except for changes to the classification and measurement of certain non-derivative financial assets and the calculation of expected credit losses, as detailed below.

At 30 September 2018 all non-derivative financial assets were classified as loans and receivables. Receivables were all initially recognised at fair value and subsequently stated at amortised cost using the effective interest method. From 1 October 2018, receivables held under a "hold to collect" business model continue to be stated at amortised cost. Receivables held under a "hold to sell" business model, which are expected to be sold via a non-recourse factoring arrangement are now separately classified at fair value through profit or loss, within trade and other receivables.

At 30 September 2018, provisions for the impairment of receivables were established when there was objective evidence that the Group would not be able to collect all amounts due according to the original terms of those receivables. Provisions were only recognised when an impairment had crystallised. From 1 October 2018 the calculation of impairment provisions is subject to an expected credit loss model, involving a prediction of future credit losses based on past loss patterns. The revised approach involves the recognition of provisions relating to potential future impairments, in addition to impairments that have already occurred. The expected credit loss approach involves the modelling of historic loss rates, and the consideration of the level of future credit risk. Expected loss rates are then applied to the gross receivables balance to calculate the impairment provision.

Cash and cash equivalents include cash in hand and deposits held on call, together with other short-term highly liquid investments.

Notes to the Financial Statements

2. Accounting policies (continued)

Retirement benefit schemes

The Company participates, together with other group companies, in a pension scheme for its employees, the Imperial Tobacco Pension Fund (the Scheme), which is of a defined benefit type. As it has not been possible to identify the underlying assets and liabilities attributable to each participating company on a consistent and reasonable basis the Company recognises the entire Scheme in these financial statements as the "sponsoring company" in the Scheme.

The amount recognised in the balance sheet is the difference between the present value of the defined benefit obligation at the balance sheet date and the fair value of the scheme assets to the extent that they are demonstrably recoverable either by refund or a reduction in future contributions. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash flows using interest rates of high quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation.

The service cost of providing retirement benefits to employees during the year is charged to operating profit. Past service costs are recognised immediately in operating profit, unless the changes to the pension plan are conditional on the employees remaining in service for a specified period of time.

All actuarial gains and losses, including differences between actual and expected returns on assets and differences that arise as a result of changes in actuarial assumptions, are recognised immediately in full in the statement of comprehensive income for the period in which they arise. An interest charge is made in the income statement by applying the rate used to discount the defined benefit obligations to the net defined benefit liability of the schemes.

For defined contribution schemes, contributions are recognised as an employee benefit expense when they are due.

Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant and are expensed over the vesting period, based on the number of instruments that are expected to vest. For plans where vesting conditions are based on total shareholder returns, the fair value at the date of grant reflects these conditions. Earnings per share and net revenue vesting conditions are reflected in the estimate of awards that will eventually vest. Where applicable the Company recognises the impact of revisions to original estimates in the income statement, with a corresponding adjustment to equity. Fair values are measured using appropriate valuation models, taking into account the terms and conditions of the awards.

Notes to the Financial Statements

3. Critical accounting estimates and judgements

The Company makes estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on historical experience, and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

In the future, actual experience may deviate from these estimates and assumptions. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the current financial year are discussed below.

Provisions

The Company holds provisions where appropriate in respect of estimated future economic outflows, principally for restructuring activity, which arise due to past events. Estimates are based on management's judgement and information available at the balance sheet date. Actual outflows may not occur as anticipated, and estimates may prove to be incorrect, leading to further charges or releases of provisions as circumstances dictate.

Investment in subsidiaries

The Company holds investments in subsidiary undertakings, the value of which is assessed on an annual basis. Estimates of future cashflows are used to provide valuations of the subsidiary entities, and where there are indications that the current carrying value of the investment is greater than the valuation of the business, impairment of the investment may be required.

The complexity of the estimation process and issues related to the assumptions, risks and uncertainties inherent in the application of the accounting estimates affect the carrying values reported in the financial statements. If business conditions were different, or if different assumptions were used in the calculation of accounting estimates, it is possible that different amounts could be reported.

Retirement Benefits

Accounting for retirement benefits uses a number of accounting estimates. The valuation of the scheme requires estimates of various market, demographic and mortality assumptions, which are fully reviewed by external actuaries. Full disclosure of the estimates used in retirement benefit accounting is included within note 19.

4. Revenue

The Company is engaged in only one class of business; the marketing and sale of tobacco and tobacco-related products, and the marketing and sales of next generation products (NGP).

Revenue is attributed solely to UK activities and accordingly no geographical analysis of revenue, operating profit or capital employed is shown.

Notes to the Financial Statements

5. Operating loss

Operating loss is stated after (crediting)/charging:

(In £ million) 2019 2018
Changes in inventories of finished goods and work in progress (pre-duty) (1) 22
Amortisation 7 7
Profit on disposal of non-current assets - (38)
Depreciation 5 6
Impairment of investments 2,630 13,321
UK distributor exceptional - 110
Restructuring costs 22 36

Restructuring charges above of £22 million (2018: £36 million) relate mainly to the Group's cost optimisation programme. These charges cover employee costs, fixed asset and stock impairment, and other costs such as those for decommissioning.

During the year, following receipt of a dividend of £2,335m the Company impaired its investment in Imperial Tobacco Management Luxemburg sarl by £2,335 million. The Company has assessed the carrying value of its investments at 30 September 2019, and recorded a further impairment in Imperial Tobacco Management Luxembourg sarl of £57 million, and an impairment of £238 million in its investment in Altadis Middle East FZCO.

During the prior year the Company undertook a group simplification and re-organisation, receiving dividends of £12,100 million from Imperial Tobacco Holdings (1) Limited and subsequently made a provision against the carrying value of this investment in subsidiary by £11,127 million. An impairment in the investment in SEITA of £2,194 million was also recorded.

On 28 November 2017 Palmer & Harvey (P&H) announced that it had entered administration. P&H had been a longstanding trading partner in the UK, however no significant disruption to UK operations occurred. As a result the Company incurred a one-off impact to operating profit of £110 million in the prior year, the majority of which relates to excise duty which is non-recoverable.

Analysis of fees payable to PricewaterhouseCoopers LLP and its associates

(In £ million) 2019 2018
Audit of the Company financial statements 0.1 0.1

No non-audit services were provided by the Auditors.

Notes to the Financial Statements

6. Directors and employees

Employment costs

(In £ million) 2019 2018
Wages and salaries 121 105
Social security costs 10 14
Other pension costs (note 19) 27 32
Share-based payments (note 23) 16 13
174 164

Pensions cost comprise £23 million cost (2018: £28 million) in respect of the defined benefit scheme, and £4 million costs (2018: £4 million cost) in respect of the defined contribution scheme.

Average number of persons (including Directors) employed by the Company during the year

Number of employees by activity 2019 2018
Production 88 141
Selling and distribution 641 630
Administration 248 289
977 1,060

Directors' emoluments

(In £ million) 2019 2018
Emoluments 2,753 4,294
LTIP annual vesting 1 - 319
SMS annual vesting 1 124 137
Total aggregate emoluments 2,877 4,750

1 During the year, one Director (2018: two) exercised share options, and received shares under the Long Term Incentive Plan (LTIP) and Share Matching Scheme (SMS). No former Directors (2018: nil) additionally exercised share options under the LTIP scheme during the year. A total of 4,693 shares with a market value of £124,234 were exercised, moreover, none of the 4,693 shares relate to the highest paid director.

The total aggregate emoluments of the highest paid Director were £1,399,901 (2018: £2,467,327), including LTIP payments of £nil (2018: £297,197) and pension benefits of £191,360 (2018: £186,680).

The Company did not pay any emoluments to past Directors (2018: three past Directors totalling £5,195,534, including LTIP payments of £691,068). No pension payments were made to former Directors.

Directors' pensions

Retirement benefits are accruing under a defined benefit scheme, in respect of qualifying services of all of the Company's Directors, with the exception of any Director whose services to the Company commenced after 30 September 2010 in which case retirement benefits are accruing on a defined contribution basis.

The Company contributions paid to the UK defined contribution scheme in respect of three Directors (2018: three) were £20,000 (2018: £26,661).

The highest paid Director in continuing service is a member of the UK defined contribution scheme and the value of their accrued Retirement Account if they had left service at the year end was £266,133 (2018: £244,358).

Notes to the Financial Statements

7. Finance income

(In £ million) 2019 2018
Interest receivable from Group undertakings 1 1
Interest receivable on bank deposits - 1
Fair value gains associated with re-translation of investments - 41
Fair value gains associated with hedges on foreign currency movements on
investments 22 -
23 43

8. Finance costs

(In £ million) 2019 2018
Interest payable to Group undertakings 279 325
Interest payable on bank deposits 4 1
Fair value losses associated with re-translation of investments 22 -
Fair value losses associated with hedges on foreign currency movements on
investments - 41
305 367

9. Tax on profit

Analysis of charge in the year

(In £ million) 2019 2018
Current tax
UK corporation tax on profits for the year 82 45
Controlled foreign company charge 6 7
Adjustments in respect of prior years (19) 11
Total current tax 69 63
Deferred tax
Origination and reversal of timing differences 2 2
Adjustments in respect of prior years 2 -
Movement in respect of pension scheme 14 11
Total deferred tax 18 13
Total tax 87 76

Notes to the Financial Statements

9. Tax on profit (continued)

Factors affecting the tax charge for the year

The tax assessed for the year is lower (2018: higher) than the standard rate of corporation tax in the UK of 19.0 per cent (2018: 19.0 per cent). The differences are explained as follows:

(In £ million) 2019 2018
Profit before taxation 730 13
Profit before taxation multiplied by standard rate of corporation tax in the UK of 19.0
per cent (2018: 19.0 per cent). 139 2
Tax effects of:
Group relief claimed (53) (25)
Movement in respect of pension scheme 14 10
UK-UK transfer pricing adjustment - (1)
Income not subject to tax (557) (2,491)
Adjustments in respect of prior years (17) 11
Controlled foreign company charge 6 7
Adjustments in respect of current year 556 2,563
Remeasurement of deferred tax - change in UK tax rate (1) -
Total tax charged to the income statement 87 76

The corporation tax for the year has been adjusted by £53 million (2018: £25 million) due to the claim of group relief for nil consideration from (2018: from) other Imperial Brands PLC subsidiaries. Further adjustments to the tax charge include £500 million (2018: £2,531 million) as a permanent difference arising from investment impairments booked in the year.

Movements in current tax liability

(In £ million) 2019 2018
As at 1 October 162 139
Charged to the income statement 69 63
Cash paid and balance sheet movements (78) (40)
As at 30 September 153 162

Factors affecting future tax charges

The current year tax rate of 19.0 per cent arises from profits being taxed at 19.0 per cent until 30 September 2019.

The prior period tax rate of 19.0 per cent arises from profits being taxed at 19.0 per cent until 30 September 2018. A further reduction to 17.0 per cent on 1 April 2020 was enacted at the balance sheet date.

It was announced in the March 2020 budget that the corporation tax rate of 19.0 per cent was to be maintained, this was substantively enacted on 17 March 2020. The tax impact of this on the closing deferred tax liability would be an increase of £9.7 million.

Notes to the Financial Statements

9. Tax on profit (continued)

The Company continues to monitor developments in relation to EU State Aid investigations. On 25 April 2019, the EU Commission's final decision regarding its investigation into the UK's Controlled Foreign Company regime was published. It concludes that the legislation up until December 2018 does partially represent State Aid. The UK Government has appealed to the European Court seeking annulment of the EU Commission's decision. The Company, in line with a number of UK corporates, is making a similar application to the European Court. The UK Government is obliged to collect any State Aid granted pending the outcome of the European Court process. The Company has not received any indication from the UK Government as to the quantum of State Aid that it believes the Company has received, if any. The Company considers that the potential amount of additional tax payable remains between nil and £300 million depending on the basis of calculation. This does not include interest which would be chargeable on any recovery sought. Based upon current advice the Company does not consider any provision is required in relation to this investigation or any other EU State Aid investigation. The assessment of uncertain tax positions is subjective and significant management judgement is required. This judgement is based on current interpretation of legislation, management experience and professional advice.

10. Dividends

(In £ million) 2019 2018
Interim dividend paid 2019 of £nil per share (2018: £318.62) - 6,000
Total ordinary share dividend paid - 6,000

The Directors do not propose a final dividend (2018: £nil).

11. Intangible assets

Intellectual
property and
product
(In £ million) development Software Total
Cost
At 1 October 2018 - 73 73
Additions 4 9 13
Disposals - (5) (5)
At 30 September 2019 4 77 81
Accumulated amortisation and impairment
At 1 October 2018 - 18 18
Amortisation charge for the year - 7 7
Disposals - (5) (5)
At 30 September 2019 - 20 20
Net book value
At 30 September 2019 4 57 61
At 30 September 2018 - 55 55

Notes to the Financial Statements

12. Investments

Shares in
subsidiary
undertakings
(In £ million)
At 1 October 2018 23,746
Additions 2,447
Impairment (2,630)
Exchange movements (40)
At 30 September 2019 23,523

During the year, following receipt of a dividend of £2,335m the Company impaired its investment in Imperial Tobacco Management Luxemburg sarl by £2,335 million, and immediately acquired an investment in Imperial Finance Ireland Limited of £2,355 million. The Company also acquired an investment in Imperial Tobacco Ventures Limited of £112 million.

As part of the year end impairment review, the Company has recorded a further impairment in Imperial Tobacco Management Luxembourg sarl of £57 million, and an impairment of £238 million in its investment in Altadis Middle East FZCO. The Directors believe that the carrying value of the investments is supported by their underlying assets.

13. Property, plant and equipment

Fixtures and
Land and Plant and motor
(In £ million) buildings machinery vehicles Total
Cost
At 1 October 2018 - 15 57 72
Additions - - 6 6
Disposals - - (7) (7)
At 30 September 2019 - 15 56 71
Accumulated depreciation
At 1 October 2018 - 7 49 56
Depreciation charge for the year - - 5 5
Disposals - - (7) (7)
At 30 September 2019 - 7 47 54
Net book value
At 30 September 2019 - 8 9 17
At 30 September 2018 - 8 8 16

14. Inventories

(In £ million) 2019 2018
Finished inventories 34 60

Notes to the Financial Statements

15. Debtors: amounts falling due within one year

(In £ million) 2019 2018
Trade receivables 48 48
Amounts owed by group undertakings 380 285
Prepayments and accrued income 7 9
435 342

Amounts owed by group undertakings are unsecured, have no fixed date for repayment and are repayable on demand. Within the £380 million (2018: £285 million), £370 million (2018: £273 million) is denominated in euros.

16. Creditors: amounts falling due within one year

(In £ million) 2019 2018
Trade payables 17 20
Amounts owed to group undertakings 9,297 10,031
Corporation tax 153 162
Other taxes, duties and social security contributions 421 455
Accruals and deferred income 130 97
10,018 10,765

Amounts owed to group undertakings are unsecured and due within a year. Within the £9,297 million (2018: £10,031 million), £3,104 million (2018: £3,205 million) is denominated in euros.

The Company is party to a notional cash pooling agreement, which has a net overdraft facility attached to it that is shared amongst the Group companies within the cash pool. The rate of interest that is applied to this overdraft is a margin over base rate and is applied to the main account only.

17. Provisions for liabilities

(In £ million) Restructuring Other Total
At 1 October 2018 9 1 10
Charged in the year 3 1 4
Utilised in the year (6) - (6)
Unused amounts reversed (2) - (2)
At 30 September 2019 4 2 6
(In £ million) 2019 2018
Current 6 10
Non-current - -
6 10

The restructuring provision relates primarily to the closure of the Nottingham factory, which reflects declining industry volumes in Europe, impacted by tough economic conditions, increasing regulation and excise and growth in illicit trade.

Notes to the Financial Statements

18. Deferred tax

The provision for deferred tax consists of the following deferred tax assets:

(In £ million) 2019 2018
Deferred tax assets due within 12 months 1 1
Deferred tax assets due after more than 12 months 7 12
Deferred tax liabilities due after more than 12 months (91) (89)
(83) (76)

Deferred tax asset/(liability)

Excess of Short-term
capital timing Retirement
(In £ million) allowances differences benefits Total
At 1 October 2018 11 2 (89) (76)
Charged to the income statement (4) (1) (13) (18)
Credited to the statement of comprehensive income - - 11 11
At 30 September 2019 7 1 (91) (83)
Excess of Short-term
capital timing Retirement
(In £ million) allowances differences benefits Total
At 1 October 2017 13 2 (52) (37)
Charged to the income statement (2) - (11) (13)
Charged to the statement of comprehensive income - - (26) (26)
At 30 September 2018 11 2 (89) (76)

19. Retirement benefit assets - amounts falling due after more than one year

The Company participates, together with other Group companies, in a pension scheme for its employees, the Imperial Tobacco Pension Fund (ITPF) (the Scheme), which is of a defined benefit type. The assets of the Scheme are held in trustee administered funds. The Scheme provides retirement benefits primarily on the basis of members' final salary and length of service. As it has not been possible to identify the underlying assets and liabilities attributable to each participating company on a consistent and reasonable basis the Company recognises the entire Scheme in these financial statements as the "sponsoring company" in the Scheme.

The Scheme operates under trust law and is managed and administered by the Trustees on behalf of the members in accordance with the terms of the Trust Deed and Rules and relevant legislation. The Scheme's assets are held by the trust.

Annual increases in benefits in payment are dependent on inflation so the main uncertainties affecting the level of benefits payable under the Scheme are future inflation levels (including the impact of inflation on future salary increases) and the actual longevity of the membership.

Notes to the Financial Statements

19. Retirement benefit assets (continued)

The contributions paid to the Scheme are set by the Scheme Actuary every three years. The Scheme Actuary is an external consultant, appointed by the Trustees. Principal factors that the Scheme Actuary will have regard to include the covenant offered by the Company, the level of risk in the Scheme, the expected returns on the Scheme's assets, the results of the funding assessment on an ongoing basis and the expected cost of securing benefits if the fund were to be discontinued.

The latest valuation of the ITPF was carried out as at 31 March 2016 when the market value of the invested assets was £3,302 million. Based on the ongoing funding target the total assets were sufficient to cover 96 per cent of the benefits that had accrued to members for past service, after allowing for expected future pay increases. The total assets were sufficient to cover 90 per cent of the total benefits that had accrued to members for past service and future service benefits for current members. In compliance with the Pensions Act 2004, Imperial Tobacco Limited and the Trustee agreed a scheme-specific funding target, a statement of funding principles and a schedule of contributions accordingly. The ITPF is currently undergoing a valuation as at 31 March 2019, the outcomes of which will be available later in the year.

Following the 2016 valuation, the level of employer's contributions to the scheme was increased from £65 million per year. The Company paid £85 million in the year to 31 March 2019, and agreed to pay £85 million each year for the subsequent 12 years. Further contributions were agreed to be paid by the Company in the event of a downgrade of the Group's credit rating to non-investment grade by either Standard & Poor's or Moody's. In addition, surety guarantees with a total value of £600 million and a parental guarantee with Imperial Brands PLC have been put in place.

The main risk for the Group in respect of the ITPF is that additional contributions are required if the investment returns are not sufficient to pay for the benefits (which will be influenced by the factors noted above). The level of equity returns will be a key determinant of overall investment return. The investment portfolio is also subject to a range of other risks typical of the asset classes held, in particular exposure to equity markets, credit risk on bonds and exposure to the property market.

The IAS 19 liability measurement of the defined benefit obligation (DBO) and the current service cost are sensitive to the assumptions made about future inflation and salary growth levels, as well as the assumptions made about life expectation. They are also sensitive to the discount rate, which depends on market yields on sterling denominated AA corporate bonds. The main differences between the funding and IAS 19 assumptions are a more prudent longevity assumption for funding and a different approach to setting the discount rate. A consequence of the ITPF's investment strategy, with a significant proportion of the assets invested in equities and other return-seeking assets, is that the difference between the market value of the assets and the IAS 19 liabilities may be relatively volatile.

Notes to the Financial Statements

19. Retirement benefit assets (continued)

The aggregate IAS 19 position is as follows:

2019
2018
(In £ million) DBO Assets Total DBO Assets Total
At 1 October (3,380) 3,902 522 (3,485) 3,790 305
Consolidated income statement (expense)/income
Current service cost (16) - (16) (21) - (21)
Past service cost - plan amendments (3) - (3) - - -
Cost of termination benefits (1) - (1) (4) - (4)
Net interest income/(expense) on net defined
benefit (liability)/asset (96) 113 17 (92) 102 10
Administration costs paid from plan assets - (3) (3) - (3) (3)
(Cost)/income recognised in the income
statement (116) 110 (6) (117) 99 (18)
Remeasurements
Actuarial gain/(loss) due to liability experience 61 - 61 (28) - (28)
Actuarial (loss)/gain due to financial
assumption changes (599) - (599) 89 - 89
Return on plan assets excluding amounts
included in net interest income above - 473 473 - 94 94
Remeasurement effects recognised in other
comprehensive income (538) 473 (65) 61 94 155
Cash
Employer contributions - 85 85 - 80 80
Employee contributions (1) 1 - (1) 1 -
Benefits paid from plan assets 155 (155) - 162 (162) -
Net cash 154 (69) 85 161 (81) 80
At 30 September (3,880) 4,416 536 (3,380) 3,902 522

Assets and liabilities recognised on the balance sheet

(In £ million) 2019 2018
Retirement benefit assets 4,416 3,902
Retirement benefit liabilities (3,880) (3,380)
536 522

Notes to the Financial Statements

19. Retirement benefit assets (continued)

Retirement benefit scheme costs charged to operating loss

(In £ million) 2019 2018
Defined benefit costs in operating loss 23 28
Defined contribution costs in operating loss 4 4
Total retirement scheme costs in operating loss 27 32

Split as follows in the income statement:

(In £ million) 2019 2018
Cost of sales - 1
Distribution, advertising and selling costs 8 9
Administrative and other expenses 19 22
Total retirement scheme costs in operating loss 27 32

Key figures and assumptions used in the Scheme

(In £ million unless otherwise indicated) 2019 2018
Defined benefit obligation 3,880 3,380
Fair value of scheme assets (4,416) (3,902)
Net defined benefit asset (536) (522)
Current service cost 16 21
Employer contributions 85 80
Principal actuarial assumptions used (% per annum)
Discount rate 1.8 2.9
Future salary increases 3.1 3.7
Future pension increases 3.1 3.2
Inflation 3.1 3.2
2019 2018
Life expectancy at age 65 years Male Female Male Female
Member currently aged 65 22.1 23.7 22.0 23.6
Member currently aged 50 23.3 25.5 23.4 25.5

Sensitivity analysis for key assumptions at the end of the reporting year

Sensitivity analysis is illustrative only and is provided to demonstrate the degree of sensitivity of results to key assumptions. Generally, estimates are made by re-performing calculations with one assumption modified and all others held constant.

% increase in DBO 2019 2018
Discount rate: 0.5% decrease 9.3 8.7
Rate of inflation: 0.5% increase 7.7 7.1
One year increase in longevity for a member currently age 65,
corresponding changes at other ages 4.9 3.5

The sensitivity to the inflation assumption change includes corresponding changes to the future salary increases and future pension increases assumptions, but is assumed to be independent of any change to discount rate.

Notes to the Financial Statements

19. Retirement benefit assets (continued)

Sensitivity analysis for key assumptions at the end of the reporting year (continued)

An approximate split of the major categories of the Scheme assets is as follows:

2019 2018
Percentage Percentage
of Scheme of Scheme
(In £ million unless otherwise indicated) Fair value assets Fair value assets
Equities 497 11 564 13
Bonds - index linked government 1,912 43 1,403 32
Bonds - corporate and other 666 15 361 8
Property 563 13 542 12
Absolute return 732 17 477 11
Other - including derivatives, commodities and cash 46 1 555 24
Fair value of scheme assets before deferred tax 4,416 100 3,902 100

The primary investment objective is to invest the ITPF's assets in an appropriate and secure manner such that members' benefit entitlements can be paid as they fall due. Specifically the ITPF targets an expected return in excess of the growth in the liabilities, which in conjunction with the contributions paid is consistent to achieve and maintain an ongoing funding level of at least 100 per cent on a buy-out basis by 2028.

The majority of the assets are quoted. Absolute return pooled funds are in overseas, non-quoted assets.

There is now no self-investments in the Imperial Brands PLC shares following termination of the mandates that previously held these shares. As in previous years, the value of ground leases have been allocated to the property asset class.

20. Called up share capital

(In £ million) 2019 2018
Authorised, allotted, called up and fully paid
18,831,139 ordinary shares of £1 each (2018: 18,831,139) 19 19
21. Capital commitments
(In £ million) 2019 2018
Contracted future expenditure but not provided in the financial statements 125 88

22. Legal proceedings

The Company reviews outstanding legal cases following developments in the legal proceedings at each balance sheet date, considering the nature of the litigation, claim or assessment; the legal processes and potential level of damages in the jurisdiction in which the litigation, claim or assessment has been brought; the progress of the case; the opinions or views of legal counsel and other advisers; experience of similar cases; and any decision of the Group's management as to how it will respond to the litigation, claim or assessment.

Notes to the Financial Statements

22. Legal proceedings (continued)

To the extent that the Company's assessments at any time do not reflect subsequent developments or the eventual outcome of any claim, its future financial statements may be materially affected, with a favourable or adverse impact upon the Company's operating profit, financial position and liquidity. There are currently no outstanding legal claims.

23. Share schemes

The Group operates four types of share-based incentive programmes, designed to incentivise staff and to encourage them to build a stake in the Group.

Share Matching Scheme

The purpose of the Share Matching Scheme is to encourage eligible employees to acquire and retain Imperial Brands PLC ordinary shares.

Directors and a proportion of the Company's management may elect to invest any proportion of their Share Matching Scheme Eligible Bonus in Imperial Brands PLC ordinary shares to be held by the Employee Benefit Trusts. Provided the shares are left in the Trusts for three years and the individual remains in employment within the Group, the individual will retain the original shares, including dividend roll-up, and receive additional shares on a one-for-one basis.

Long Term Incentive Plan (LTIP)

Annual conditional awards have been made to Directors and other senior executives. The conditional awards, which vest three years after grant, including dividend roll-up, are subject to the satisfaction of specified performance criteria measured over a three year performance period. Further information relating to the performance criteria and the terms of the LTIP are set out in the Annual Report of Imperial Brands PLC.

Sharesave Plan

Under the International Sharesave Plan the Imperial Brands PLC Board may offer options to purchase ordinary shares in Imperial Brands PLC to employees who enter into a savings contract. The price at which options may be offered varies depending on local laws, but will not be less than 80 per cent of the closing mid-market price of an Imperial Brands PLC ordinary share on the London Stock Exchange on the day prior to invitation. The options may normally be exercised during the six months after expiry of the savings contract, three years after entering the Plan.

Under the UK Sharesave Plan, which is part of the Group's International Sharesave Plan, the Imperial Brands PLC Board may offer options to purchase ordinary shares in Imperial Brands PLC to UK employees who enter into an HM Revenue and Customs approved Save as You Earn (SAYE) savings contract. The options may normally be exercised during the six months after the expiry of the SAYE contract, three years after entering the UK Sharesave Plan.

Discretionary Share Awards Plan (DSAP)

Under the DSAP, one-off conditional awards are made to individuals to recognise exceptional contributions within the business. Awards, which are not subject to performance conditions and under which vested shares do not attract dividend roll-up, will normally vest on the third anniversary of the date of grant subject to the participant's continued employment. The limit of an award under the DSAP is capped at 25 per cent of the participant's salary at the date of grant. Shares used to settle awards under the DSAP will be market purchased.

Notes to the Financial Statements

23. Share schemes (continued)

Analysis of the charge to the income statement

(In £ million) 2019 2018
Share Matching Scheme 3 6
Long Term Incentive Plan 11 5
Sharesave Plan 1 1
Discretionary Share Awards Plan 1 1
16 13

Reconciliation of movements in awards/options

2019
Sharesave
weighted
Share average
Thousands of shares unless otherwise Matching LTIP Sharesave DSAP exercise price
indicated awards awards awards awards (£)
Outstanding at 1 October 2018 424 1,539 231 22 24.28
Granted 66 1,091 202 9 17.45
Lapsed/cancelled (13) (322) (169) (1) 23.82
Exercised (237) (79) (4) (9) 24.41
Outstanding at 30 September 2019 240 2,229 260 21 19.27
Exercisable at 30 September 2019 - - 13 - 29.68
2018
Sharesave
weighted
Share average
Thousands of shares unless otherwise Matching LTIP Sharesave DSAP exercise
indicated awards awards awards awards price (£)
Outstanding at 1 October 2017 685 886 254 22 27.15
Granted 66 984 162 2 22.24
Lapsed/cancelled
Exercised (53)
(274)
(204)
(127)
(97)
(88)
(1)
(1)
23.51
29.10

The weighted average Imperial Brands PLC share price at the date of exercise of awards and options was £25.96 (2018: £28.96). The weighted average fair value of Sharesave options granted during the year was £3.54 (2018: £4.37).

    • 13 - 25.40

Summary of awards/options outstanding at 30 September 2019

Exercisable at 30 September 2018

Number of Vesting Exercise price
awards/ period of options
options remaining in outstanding
Thousands of shares unless otherwise indicated outstanding months (£)
Share Matching Scheme
2017 173 5 n/a
2018 33 17 n/a
2019 34 29 n/a
Total awards outstanding 240

Notes to the Financial Statements

23. Share schemes (continued)

Summary of awards/options outstanding at 30 September 2019 (continued) Number of
awards/ Vesting period Exercise price of
options remaining in options
Thousands of shares unless otherwise indicated outstanding months outstanding (£)
Long Term Incentive Plan
2015 9 - n/a
2016 2 - n/a
2017 274 5 n/a
2018 888 17 n/a
2019 1,056 29 n/a
Total awards outstanding 2,229
Sharesave Plan
2016 13 - 29.68
2017 11 10 29.62
2018 36 22 22.24
2019 200 34 17.45
Total awards outstanding 260
Discretionary Shares Awards Plan
2017 10 8 n/a
2018 2 19 n/a
2019 9 29 n/a
Total awards outstanding 21

The vesting period is the period between the grant of awards or options and the earliest date on which they are exercisable. The vesting period remaining and the exercise price of options outstanding are weighted averages. Participants in the Sharesave Plan have six months from the maturity date to exercise their option. Participants in the LTIP have up to seven years from the end of the vesting period to exercise their option. The exercise price of the options is fixed over the life of each option.

Pricing

For the purposes of valuing options to calculate the share-based payment charge, the Black-Scholes option pricing model has been used for the Share Matching Scheme, Sharesave Plan and Discretionary Awards Plan. A summary of the assumptions used in the Black-Scholes model for 2019 and 2018 is as follows:

2019
Share
matching Sharesave DSAP
Risk-free interest rate 1.1% 1.1% 0.7% - 1.1%
Volatility 25.0% 24.4% 24.7% - 26.3%
Expected lives of options granted 3 yrs 3 yrs 3 yrs
Dividend yield 6.7% 6.7% 6.7%
Fair value £21.72 £3.54 £15.65 - £21.72
Share price used to determine exercise price £26.52 £21.81 £18.69 - £26.52
Exercise price n/a £17.45 n/a

Notes to the Financial Statements

23. Share schemes (continued)

Pricing (continued)

2018
Share
matching Sharesave DSAP LTIP
Risk-free interest rate 1.2% 1.2% 1.2% 1.2% - 1.3%
Volatility 24.1% 24.2% 24.2% 23.9 - 24.5%
Expected lives of options granted 3 yrs 3 yrs 3 yrs 3 - 5 yrs
Dividend yield 4.8% 4.8% 4.8% 4.8%
Fair value £22.84 £4.37 £24.24 £22.05 - £24.24
Share price used to determine exercise price £26.34 £26.32 £27.96 £27.96
Exercise price n/a £22.24 n/a n/a

Market conditions were incorporated into the Monte Carlo method used in determining the fair value of LTIP awards at grant date. Assumptions in 2019 and 2018 are given in the following table.

(%) 2019 2018
Future Imperial Tobacco Group share price volatility 20 18.7 - 19.2
Future Imperial Tobacco Group dividend yield - -
Share price volatility of the tobacco and alcohol comparator group 14.9 - 65.6 17.0 - 38.0
Correlation between Imperial Tobacco and the alcohol and tobacco
comparator group 27 32

24. Related party transactions

The Company has taken advantage of the Group exemption under the terms of IAS 24 from disclosing related party transactions with entities that are part of the Group since the Company is a wholly owned subsidiary of Imperial Brands PLC and is included in the consolidated financial statements of the Group, which are publicly available.

25. Guarantees

Together with Imperial Brands PLC (IB) (the ultimate parent company), the Company acts as guarantor for the following facilities for the benefit of the overall IB Group; one committed credit facility dated April 2019; bonds issued since September 2008 under various Euro Medium Term Noted Debt Issuance Programmes; bonds issued since February 2013 under the provisions of Sections 144 and Regulation S of the US Securities Act (1933); four uncommitted credit borrowing facilities dated March 2011, May 2017, August 2017 and November 2018; International Swap and Derivatives Association agreement dated March 2012. In addition, the Company also acts as a guarantor together with IB and various other subsidiaries of IB for an uncommitted borrowing facility dated January 2007.

At 30 September 2019, the contingent liabilities totalled £16,753 million (2018: £14,323 million).

The Directors have assessed the fair value of the above guarantees and do not consider them to be material. They have, therefore, not been recognised on the balance sheet.

Notes to the Financial Statements

26. COVID-19

In March 2020 the Imperial Brands Group was impacted by the global Coronavirus (Covid-19) pandemic, which resulted in unprecedented government restrictions on the normal operations of the Group across many countries. The restrictions put in place initially resulted in a number of office and factory closures. The Group has responded by adapting working practices through activities such as strengthening our IT infrastructure and accelerating the rollout of software to remote facilitate team-working, as well as encouraging a more flexible approach. There have been modifications to working practices including changing shift patterns to ensure appropriate infection controls and social distancing for employees in manufacturing facilities. As a result of this, manufacturing plants have continued to operate and the Group is able to both produce and distribute product to customers to meet demand, while complying with all necessary safety precautions to protect staff and business partners from the risks arising from the pandemic.

As the pandemic commenced in 2020 this represents a non adjusting post balance sheet event with regards to the financial statements of the Company for the year ending 30 September 2019.

To date, the observable impacts on the Company's activities have been limited to low level changes in credit risk in the duty free and travel retail operations area. The Company is not aware of any post year end impairments to its investments specifically associated with the impact of the pandemic.

Review of the key financial assumptions relating to the Company's defined benefit pension scheme subsequent to the balance sheet date indicates that the fair value of plan assets is expected to be volatile in the short term due to uncertain market conditions.

27. Related undertakings

The ultimate parent undertaking and controlling party of the Company at 30 September 2019 was Imperial Brands PLC, a company incorporated in the United Kingdom and registered in England and Wales. The smallest and largest group in which the results of the Company are consolidated is that headed by Imperial Brands PLC, whose consolidated financial statements may be obtained from the Company Secretary, 121 Winterstoke Road, Bristol, BS3 2LL.

The immediate parent undertaking of Imperial Tobacco Limited at 30 September 2019 was Imperial Tobacco Holdings Limited, a company incorporated in the United Kingdom and registered in England and Wales.

In accordance with Section 409 of the Companies Act 2006 a full list of subsidiaries, partnerships, associates, and joint ventures, the principal activity, the country of incorporation and the effective percentage of equity owned, as at 30 September 2019 are disclosed below.

Notes to the Financial Statements

27. Related undertakings (continued)

Name Principal activity and registered address Attendfriend Limited British Tobacco Company Limited Hypofill Limited Imperial Brands Enterprise Finance Limited Imperial Brands Ventures Limited (xi) Imperial Investments Limited Imperial Tobacco Altadis Limited Imperial Tobacco Group Limited Imperial Tobacco Holdings (1) Limited (iv) Imperial Tobacco Initiatives Imperial Tobacco International Limited Imperial Tobacco Lacroix Limited Imperial Tobacco Overseas (Polska) Limited Imperial Tobacco Overseas Holdings (1) Limited (viii) Imperial Tobacco Overseas Holdings (2) Limited Provision of finance to other Group companies 121 Winterstoke Road, Bristol, BS3 2LL, England Subsidiaries: Registered in England and Wales, wholly owned Dormant 121 Winterstoke Road, Bristol, BS3 2LL, England Dormant 121 Winterstoke Road, Bristol, BS3 2LL, England Dormant Wellington House, Physics Road, Speke, Liverpool, L24 9HP, England Provision of treasury services to other Group companies 121 Winterstoke Road, Bristol, BS3 2LL, England Holding investments in subsidiary companies 121 Winterstoke Road, Bristol, BS3 2LL, England Dormant 121 Winterstoke Road, Bristol, BS3 2LL, England Export and marketing of tobacco products 121 Winterstoke Road, Bristol BS3 2LL England Imperial Tobacco Capital Assets (1) (xi) Provision of finance to other Group companies 121 Winterstoke Road, Bristol, BS3 2LL, England Imperial Tobacco Capital Assets (2) (xi) Provision of finance to other Group companies 121 Winterstoke Road, Bristol, BS3 2LL, England Imperial Tobacco Capital Assets (3) (xi) Provision of finance to other Group companies 121 Winterstoke Road, Bristol, BS3 2LL, England Imperial Tobacco Capital Assets (4) Dormant 121 Winterstoke Road, Bristol, BS3 2LL, England Dormant 121 Winterstoke Road, Bristol, BS3 2LL, England Holding investments in subsidiary companies 121 Winterstoke Road, Bristol, BS3 2LL, England Provision of finance to other Group companies 121 Winterstoke Road, Bristol BS3 2LL England Provision of finance to other Group companies 121 Winterstoke Road, Bristol, BS3 2LL, England Holding investments in subsidiary companies 121 Winterstoke Road, Bristol, BS3 2LL, England Holding investments in subsidiary companies 121 Winterstoke Road, Bristol, BS3 2LL, England Holding investments in subsidiary companies 121 Winterstoke Road, Bristol, BS3 2LL, England

Notes to the Financial Statements

27. Related undertakings (continued)

Subsidiaries: Registered in England and Wales, wholly owned (continued)

Name Principal activity and registered address
Imperial Tobacco Overseas Holding investments in subsidiary companies
Holdings (3) Limited 121 Winterstoke Road, Bristol, BS3 2LL, England
Imperial Tobacco Overseas Holding investments in subsidiary companies
Holdings Limited 121 Winterstoke Road, Bristol, BS3 2LL, England
Imperial Tobacco Overseas Holding investments in subsidiary companies
Limited (x) 121 Winterstoke Road, Bristol, BS3 2LL, England
Imperial Tobacco Pension Dormant
Trustees (Burlington House) 121 Winterstoke Road, Bristol, BS3 2LL, England
Limited Imperial Tobacco Pension Dormant
Trustees Limited 121 Winterstoke Road, Bristol, BS3 2LL, England
Imperial Tobacco Ventures Holding investments in subsidiary companies
Limited 121 Winterstoke Road, Bristol, BS3 2LL, England
ITG Brands Limited Holding investments in subsidiary companies
121 Winterstoke Road, Bristol, BS3 2LL, England
Joseph & Henry Wilson Limited Licencing rights for the manufacture and sale of tobacco
products
Nerudia Limited 121 Winterstoke Road, Bristol, BS3 2LL, England
Research and development of e-vapour products
Wellington House, Physics Road, Speke, Liverpool, L24 9HP,
England
Nerudia Trading Limited Dormant
Wellington House, Physics Road, Speke, Liverpool, L24 9HP,
England
Nerudia Consulting Limited Research and development of e-vapour products
Wellington House, Physics Road, Speke, Liverpool, L24 9HP,
England
Nerudia Compliance Limited Dormant
Wellington House, Physics Road, Speke, Liverpool, L24 9HP,
England
Park Lane Tobacco Company Dormant
Limited 121 Winterstoke Road, Bristol, BS3 2LL, England
Rizla UK Limited Entity ceased trading
121 Winterstoke Road, Bristol, BS3 2LL, England
Sensus Investments Limited Dormant
Wellington House, Physics Road, Speke, Liverpool, L24
9HP, England
Sinclair Collis Limited (iv) Dormant Distributor of tobacco products in England, Scotland
and Wales
121 Winterstoke Road, Bristol, BS3 2LL, England

Notes to the Financial Statements

27. Related undertakings (continued)

Subsidiaries: Incorporated overseas, wholly owned

Country of
Name incorporation Principal activity and registered address
1213509 B.C. Limited Canada Holding investments in subsidiary companies
Suite 1700. Park Place, 666 Burrard Street, Vancouver, BC.
V6C2X8, Canada
800 JR Cigar Inc United States of Holding investments in subsidiary companies
America 301 Route 10 East, Whippany, New Jersey, 07981, USA
Altadis Canarias SAU (ii) Spain Marketing and sale of tobacco products in the Canary Islands
C/Comandaute Azcarraga 5, Madrid 28016, Spain
Altadis Mayotte SAS France, Mayotte Sales and distribution of tobacco products in Mayotte Island
Island C/o SOMACO, BP 15 - Mamoudzou, 97600, Mayotte
Altadis Middle East FZCO United Arab Sales and marketing of tobacco products in the Middle East
Emirates P.O. Box. No. 261718, Jebel Ali Free Zone, Dubai, 261718,
United Arab Emirates
Altadis Ocean Indien SAS France (La Reunion Sales and distribution of tobacco products in la Reunion Island
Island) ZI n° 2 - BP 256 - 97457 Saint Pierre Cedex, La Reunion
Altadis S.A.U. Spain Manufacture, sales and distribution of tobacco products in
Spain
Parque Empresarial Cristalia, Vía de los Poblados, 3, Edificio
7/8, Madrid, 28033, Spain
Cacique, SA - Comércio, Brazil Dormant
Importaçao e Exportaçao Rua Marechal Deodoro, 690 - Centro Arapiraca, Alagoas, Brazil
Casa Blanca Inc United States of Restaurant
America 301 Route 10 East, Whippany, New Jersey, 07981, USA
Casa de Montecristo Inc United States of Retail
America Corporation Service Company, 2711 Centerville Road, Suite
400, City of Wilmington, County of New Castle, DE, 19808, USA
Casa de Montecristo FL LLC United States of Retail
America C/o Corporation Service Company, 1201 Hayes Street,
Tallahassee Florida 32301, USA
Casa de Montecristo TN LLC United States of Retail
America CSC, 2908 Poston Avenue, Nashville, TN 37203, USA
Casa de Montecristo TX LLC United States of Retail
America Corporate Service Company, 211 E. 7th Floor, Suite 260, Austin,
Texas, TX 78701, USA
Coralma International SAS France Holding investments in subsidiary companies
143 bd Romain Rolland, Cedex 14, Paris, 75685, France
Dunkerquoise des Blends SAS France Tobacco processing
143 bd Romain Rolland, Cedex 14, Paris, 75685, France

Notes to the Financial Statements

27. Related undertakings (continued)

Country of
Name incorporation Principal activity and registered address
East Side Cigar, Inc United States of Production and distribution of cigars
America Corporate Service Company, 80 State St, Albany, NY12207-
2543, USA
Ets L Lacroix Fils NV/SA Belgium Manufacture and sale of tobacco products in Belgium
Sint-Bavostraat 66, 2610 Wilrijk, Belgium
Fontem (Beijing) Technology People's Republic Research and development
Solutions Limited (i) of China Room 201, Floor 2, Building 6, Yuan Dong science and
technology park, 6 Hepingli North Street, Dong Cheng District,
Beijing, 100013, China
Fontem Canada Limited (vii) Canada Import and distribution of tobacco and tobacco related
products in Canada
Suite 200, 389 Connell Street, Woodstock, NB, E7M 5G5,
Canada
Fontem Holdings 1 B.V. The Netherlands Holding investments in subsidiary companies
Radarweg 60, Amsterdam, 1043 NT, The Netherlands
Fontem Holdings 2 B.V. The Netherlands Holding investments in subsidiary companies
Radarweg 60, Amsterdam, 1043 NT, The Netherlands
Fontem Holdings 3 B.V. The Netherlands Holding investments in subsidiary companies
Radarweg 60, Amsterdam, 1043 NT, The Netherlands
Fontem Holdings 4 B.V. The Netherlands Holding investments in subsidiary companies
Radarweg 60, Amsterdam, 1043 NT, The Netherlands
Fontem Holdings B.V. The Netherlands Holding investments in subsidiary companies
Radarweg 60, Amsterdam, 1043 NT, The Netherlands
Fontem International GmbH Germany Holding investments in subsidiary companies
Max-Born-Straße 4, Hamburg, 22761, Germany
Fontem US, Inc. United States of Sales and marketing of tobacco products in the US
America 4th Floor, 3730 Glen Lake Dr. Charlotte, NC 28208, USA
Fontem Ventures B.V. The Netherlands Holding investments in subsidiary companies
Radarweg 60, Amsterdam, 1043 NT, The Netherlands
Fontem Ventures France S.A.S. France Marketing and sale of e-vapour products in France
143 bd Romain Rolland, Cedex 14, Paris, 75685, France
Huotraco International Limited Cambodia Production and marketing of tobacco products
No 299, Preah Ang Duong Street, Sangkat Wat Phnom, Khan
Daunh Penh, Phnom Penh, Cambodia
Import and distribution of tobacco and tobacco related
Imperial Brands Columbia SAS Columbia products in Columbia TV21 No. 98 05, Bogata D.C. Columbia
Imperial Brands Finance France France Provision of finance to other Group companies
SAS 143 bd Romain Rolland, Cedex 14, Paris, 75685, France

Notes to the Financial Statements

27. Related undertakings (continued)

Country of
Name incorporation Principal activity and registered address
Imperial Brands Finland Oy Finland Sales and marketing of tobacco products in Finland
Poikluomantie 1-3, Piispanristi, 20760, Finland
Imperial Brands Global Duty Spain Sale and export of duty-free tobacco products
Free & Export S.L. C/Comandaute Azcarraga 5, Madrid 28016, Spain
Imperial Finance Ireland Limited Ireland Provision of finance to other Group Companies 21,
Beckett Way, Park West, Nangor Road, Dublin, 12,
Ireland
Imperial Nominees Limited (ii) New Zealand Trustee Company
124-130, Richmond Street, Petone, Wellington, New Zealand
Imperial Tobacco (Asia) Pte. Ltd. Singapore Trading of tobacco related products
80 Robinson Road, #02-00, 068898, Singapore
Imperial Tobacco (Beijing) People's Republic Dormant
Limited (i) of China Rm. 305 D-3F, Vantone Center, Jia No. 6 Chaowai Street,
Chaoyang District, Beijing, PRC 100020, China
Imperial Tobacco Australia Australia Sales and marketing of tobacco products in Australia
Limited John Player Special House, Level 4, 4-8 Inglewood Place,
Norwest, NSW 2153, Australia
Imperial Tobacco Austria Austria Marketing of tobacco products in Austria
Marketing Service GmbH Zieglergasse 6, A-1070 Vienna, Austria
Imperial Tobacco BH doo (i) Bosnia Marketing and distribution of tobacco products in Bosnia
Herzegovina Adema Buce, Sarajevo, 71000, Bosnia & Herzegovina
Imperial Tobacco Bulgaria Bulgaria Manufacture and sale of tobacco products in Bulgaria
EOOD (i) 15 Henrih Ibsen str, Floor 4, Office 4, Sofia, 1407, Bulgaria
Imperial Tobacco CR s.r.o. Czech Republic Sales and marketing of tobacco products in the Czech Republic
Radlicka 14, Prague 5, 150 00, Czech Republic
Imperial Tobacco Denmark ApS Denmark In liquidation
Lyskaer 3 CD, 2730 Herlev, Denmark
Imperial Tobacco Distribution Bulgaria Marketing and distribution of tobacco products in Bulgaria
EOOD (i) 15 Henrih Ibsen str, Floor 4, Office 4, Sofia, 1407, Bulgaria
Imperial Tobacco Distribution Romania Marketing and distribution of tobacco products in Romania
Romania srl Nicolae Canea Street no. 140-160, EOS Business Park, 1st Floor
North, 2nd District, Bucharest, Romania
Imperial Tobacco España, S.L.U. Spain Holding investments in subsidiary companies
C/Comandaute Azcarraga 5, Madrid 28016, Spain
Imperial Tobacco Estonia OÜ Estonia Sale of tobacco products
Valge 13, 11145, Tallinn, Estonia
Imperial Tobacco Holdings The Netherlands Provision of finance to other Group companies
(Netherlands) B.V. Slachtedijk 28a, 8501 ZA, Joure, Netherlands

Notes to the Financial Statements

27. Related undertakings (continued)

Country of
Name incorporation Principal activity and registered address
Imperial Tobacco Intellectual Ireland Ownership of trademarks
Property Limited 21, Beckett Way, Park West, Nangor Road, Dublin, 12, Ireland
Imperial Tobacco International Germany Export and marketing of tobacco products
GmbH Max-Born-Straße 4, Hamburg, 22761, Germany
Imperial Tobacco Ireland Ireland Dormant
Unlimited Company (v) 6th Floor, 2 Grand Canal Square, Dublin 2, Ireland
Imperial Tobacco Italia S.r.l. Italy Sales and marketing of tobacco products in Italy
Via Luca Passi 22, Roma, 00166, Italy
Imperial Tobacco Italy S.r.l. Italy Holding investments in subsidiary companies
Via Luca Passi 22, Roma, 00166, Italy
Imperial Tobacco Japan Japan Sales and marketing of tobacco products in Japan
Kabushiki Kaisha 5-12-7 Shirokane dai, M6 Shirokane dai Building, Minato-ku,
Tokyo, Japan
Imperial Tobacco Korea Limited Korea Sales and marketing of tobacco products in South
Korea. 612 ho 6F ChosunNaewha BD, 577 Seolleung
RO, Gangnam-gu, 06143 Republic of Korea
Imperial Tobacco Magyarország Hungary Sales and marketing of tobacco products in Hungary
Dohányforgalmázo Kft (Imperial Váci út 141, 1138, Budapest, Hungary
Tobacco Hungary)
Imperial Tobacco Management Luxembourg Holding investments in subsidiary companies
Luxembourg sarl 56 Rue Charles Martel, L-2134, Luxembourg
Imperial Tobacco Marketing Malaysia Trading of tobacco products
Sdn Bhd Symphony Corporatehouse SdnBhd, Level 8 Symphony House,
Block D13, Pusat Dagangan Dana 1, Jalan PJU 1A/46, 47301
Petaling Jaya, Selangor Darul Ehsan, Malaysia
Imperial Tobacco New Zealand New Zealand Manufacture and sale of tobacco products in New Zealand
Limited 124-130, Richmond Street, Petone, Wellington, New Zealand
Imperial Tobacco Norway AS Norway Sales and marketing of tobacco products in Norway
Ryensvingen 2-4, 0680, Oslo, Norway
Imperial Tobacco Polska Poland Manufacture of tobacco products in Poland
Manufacturing SA Ul. Tytoniowa 2/6, Radom, 26-600, Poland
Imperial Tobacco Polska S.A. Poland Manufacture and sale of tobacco products in Poland
Jankowice, ul. Przemyslowa 1, Pl-62-080, Tarnowo-Podgome,
Poland
Imperial Tobacco Portugal Portugal Advertising and support management
SSPLC 144, 7 DT, Avenida da Liberdade, Lisbon, Portugal
Imperial Tobacco Production Ukraine Manufacture of tobacco products in Ukraine
Ukraine (i) ul. Akademika Zabolotnogo, 35, 03026, Kiev, Ukraine

Notes to the Financial Statements

27. Related undertakings (continued)

Country of
Name incorporation Principal activity and registered address
Imperial Tobacco Sales & Russia Sales and marketing of tobacco products in Russia
Marketing LLC Degtjarnyi pereulok 4-1, 125009 Moskau, Russian Federation
Imperial Tobacco SCG doo Serbia Marketing and distribution of tobacco products in Serbia
Beograd (i) Milutina Milankovica 11a, Novi Beograd, Serbia
Imperial Tobacco Sigara ve Turkey Manufacture of tobacco products in Turkey
Tutunculuck Sanayi Ve Ticaret Kecilikoy OSB, Mah. Ahmet Tutuncuoglu Cad. No: 11, 45030
A.S. Yunusemre, Manisa, Turkey
Imperial Tobacco Slovakia a.s. Slovak Republic Sales and marketing of tobacco products in the Slovak Republic
7A Galvaniho, 824 53 Bratislava, Slovakia
Imperial Tobacco Taiwan Co Taiwan Sales and marketing of tobacco products in Taiwan
Limited 6F 1-2 No.2 Sec 3, Minsheng E Road, Zhongshen District, Tapei,
Taiwan Province of China
Imperial Tobacco Taiwan Taiwan Manufacture of tobacco products in Taiwan
Manufacturing Company No 8 Cyunyi Road, Jhunan, MiaoLi County 350, Taiwan Province
Limited of China
Imperial Tobacco Tutun Turkey Sales and marketing of tobacco products in Turkey
Urunleri Satis Ve Pazarlama A.S. Kecilikoy OSB, Mah. Ahmet Tutuncuoglu Cad. No: 11, 45030
Yunusemre, Manisa, Turkey
Imperial Tobacco Ukraine (i) Ukraine Sales and marketing of tobacco products in Ukraine
ul. Akademika Zabolotnogo, 35, 03026, Kiev, Ukraine
Imperial Tobacco Volga LLC (i) Russia Manufacture of tobacco products in Russia
ul.Tomskaja 7, 400048 Volgograd, Russian Federation
Imperial Tobacco West Africa Cote D'Ivoire Holding investments in subsidiary companies
SAS (i) Cocody-Nord, Quartier Gendarmerie, TF 5937, 01 B.P. 724
Abidjan
Imperial Tobacco Yaroslavl CJSC Russia Manufacture of tobacco products in Russia
(i) 22, Pobedy St., 150040 Yaroslavl, 150040, Russian Federation
Imperial Tobacco Zagreb doo (i) Croatia Marketing and distribution of tobacco related products in
Croatia
Gradičanska 30, Zagreb, HR-10000, Croatia
IMPTOB South Africa (Pty) South Africa Provision of services to other Group companies
Limited Suite 107, Beacon Rock, 21 Lighthouse Road, Umhlanga 4319,
South Africa
International Marketing Nigeria Sales and marketing and of tobacco products in Nigeria
Promotional Services Limited 13 A, Dapo Solanke Close - Lekki Phase 1, Lagos, Nigeria
ITB Corporation Limited Bahamas Trademark owner
Building of the Canadian Imperial Bank of Commerce, Shirley
Street, Nassau, Bahamas

Notes to the Financial Statements

27. Related undertakings (continued)

Country of
Name incorporation Principal activity and registered address
ITB Corporation y Cía., S.R.C. Spain Trademark owner
Calle Antonio Maura número 9, Madrid, 28014, Spain
ITI Cigars SL Spain Holding investments in subsidiary companies
Parque Empresarial Cristalia, Vía de los Poblados, 3, Edificio
7/8, Madrid, 28033, Spain
ITL Pacific (HK) Limited Hong Kong Manufacture and sale of tobacco and tobacco related products
Room 3907-08, 39th Floor, Hopewell Centre, 183 Queens Road
East, Wanchai, Hong Kong
J & R Tobacco (New Jersey) United States of Sales of tobacco and tobacco related products
Corp America 301 Route 10 East, Whippany, New Jersey, 07981, USA
JAW-Invest Oy Finland Trademark owner
Poikluomantie 1-3, Piispanristi, 20760, Finland
John Player & Sons Limited Ireland Sales and marketing of tobacco products in the Republic of
Ireland
21, Beckett Way, Park West, Nangor Road, Dublin, 12, Ireland
John Player Ireland Pension Ireland Sales and marketing of tobacco products in the Republic of
Trustee Limited Ireland
21, Beckett Way, Park West, Nangor Road, Dublin, 12, Ireland
JR Cigar (DC) Inc United States of Sales of tobacco and tobacco related products
America 301 Route 10 East, Whippany, New Jersey, 07981, USA
JR Cigars.com, Inc. United States of Sales of tobacco and tobacco related products
America 405 East Market Street, P.O. Drawer 1960, Smithfield, North
Carolina, 27577, USA
JR Mooresville, Inc United States of Sales of tobacco and tobacco related products
America 405 East Market Street, P.O. Drawer 1960, Smithfield, North
Carolina, 27577, USA
JR Tobacco NC, Inc United States of Sales of tobacco and tobacco related products
America 405 East Market Street, P.O. Drawer 1960, Smithfield, North
Carolina, 27577, USA
JR Tobacco of America Inc United States of Sales of tobacco and tobacco related products
America 327, Hillsborough Street, Raleigh, NC, 27603, USA
JR Tobacco of Burlington Inc United States of Sales of tobacco and tobacco related products
America 327, Hillsborough Street, Raleigh, NC, 27603, USA
JR Tobacco of Michigan Inc United States of Sales of tobacco and tobacco related products
America 601, Abbott Road, East lansing, Ingham, MI, 48823, USA
JR Tobacco Outlet Inc United States of Sales of tobacco and tobacco related products
America 301 Route 10 East, Whippany, New Jersey, 07981, USA
JSNM SARL France Trademark owner
143 bd Romain Rolland, Cedex 14, Paris, 75685, France

Notes to the Financial Statements

27. Related undertakings (continued)

Country of
Name incorporation Principal activity and registered address
La Flor de Copan Honduras SA Honduras (CA) Manufacture of handmade premium cigars
Zona Libre, Colonia MeJia Garcia, Frente Boulavard, Jorge
Bueso Arias, Santa Rosa de Copan, Honduras
Los Olvidados SRL Dominican Manufacture and distribution of cigars
Republic 129, Independencia Street, Santiago, 51000, Dominican
Republic
MYBLU Spain S.L. Spain Marketing and sale of e-vaopur products in Spain
CR. Robledo de Chavela, S/N. San Lorenzo del Escorial, Madrid,
28200, Spain
MC Management, Inc. United States of Provision of services to other Group companies
America 301 Route 10 East, Whippany, New Jersey, 07981, USA
Meccarillos France, SA Luxembourg Holding investments in subsidiary companies
Route Des Trois Cantons 9, 8399 Windhof, Luxembourg
Meccarillos International, SA Luxembourg Holding investments in subsidiary companies
Route Des Trois Cantons 9, 8399 Windhof, Luxembourg
Meccarillos Suisse, SA Luxembourg Holding investments in subsidiary companies
Route Des Trois Cantons 9, 8399 Windhof, Luxembourg
Millennium Tobacco Unlimited Ireland Provision of finance to other Group companies
Company 21, Beckett Way, Park West, Nangor Road, Dublin, 12, Ireland
Newglade International Ireland Dormant
Unlimited Company 6th Floor, 2 Grand Canal Square, Dublin 2, Ireland
Philippine Bobbin Corporation Philippines Manufacture of tobacco related products
Cavite Economic Zone, Phase II, Rosario, Cavite, Philippines
Real Club de Golf la Herrería Spain Management of golf course
S.A. CR. Robledo de Chavela, S/N. San Lorenzo del Escorial, Madrid,
28200, Spain
REEMARK Gesellschaft für Germany Dormant
Markenkooperation mbH Max-Born-Straße 4, Hamburg, 22761, Germany
Robert Burton Associates United States of Marketing of papers in the US
Limited America 5900 North Andrews Avenue, Ste. 1100, Fort Lauderdale,
Florida, FL 33309, USA
Santa Clara Inc United States of Distribution of cigars
America 327, Hillsborough Street, Raleigh, NC, 27603, USA
Skruf Snus AB Sweden Manufacture, marketing, sales of tobacco products in Sweden
Kungsgatan 12-14, Floor 7, Stockholm, SE-111 35, Sweden
Société Centrafricaine de Central African Manufacture and distribution of cigarettes in Central African
Cigarettes SA (i) Republic Republic
Rue David Dacko, BP 1446, Bangui, Central African Republic

Notes to the Financial Statements

27. Related undertakings (continued)

Country of
Name incorporation Principal activity and registered address
Société Centrafricaine de Central African Dormant
Distribution Sarl (i) Republic Avenue Boganda Pk4, Bangui, Central African Republic
Société du Mont Nimba Sarl (i) Guinee Conakry Dormant
BP 3391, Conakry, Guinea
Société Nationale d'Exploitation France Manufacture and sale of tobacco products in France, and
Industrielle des Tabacs et export of tobacco products
Allumettes SAS (SEITA) 143 bd Romain Rolland, Cedex 14, Paris, 75685, France
Société pour le Développement France Purchasing company
du Tabac en Afrique SAS 143 bd Romain Rolland, Cedex 14, Paris, 75685, France
System Designed to Africa Sarl Morocco Distribution of tobacco products
Km 17, Route national de Rabat, Ain Harrouda, Morocco
Tabacalera Brands SLU Spain Holding investments in subsidiary companies
Parque Empresarial Cristalia, Vía de los Poblados, 3, Edificio
7/8, Madrid, 28033, Spain
Tabacalera de Garcia SAS France Manufacture of cigars in the Dominican Republic
320, Rue Saint-Honore, Paris, 75001, France
Tabacalera de Garcia SAS Dominican Manufacture of cigars in the Dominican Republic
Republic Industrial Free Zone #1, La Romana, Domincan Republic
Tabacalera SLU Spain Holding investments in subsidiary companies
C/Via de los Poblados, 3 Edif. 7-8, Plantas 3a y 4a, Madrid,
28033, Spain
Tabacalera USA Inc United States of Holding investments in subsidiary companies
America Corporation Service Company, 2711 Centerville Road, Suite
400, City of Wilmington, County of New Castle, DE, 19808, USA
Tahiti Tabacs SASU France, Papeete Distribution of tobacco products in Denmark and Greenland
(Tahiti) PK 4, 300 Côté mer, 98701 Arue, BP 20692 Papeete, French
Polynesia
Tobacco Products Fulfillments, United States of Fulfilment services
Inc. America PK 4, 300 Côté mer, 98701 Arue, BP 20692 Papeete, French
Polynesia
Tobaccor SAS (v) France Holding investments in subsidiary companies
143 bd Romain Rolland, Cedex 14, Paris, 75685, France
Tobačna 3DVA, trgovsko Slovenia Retail of products in Slovenia
podjetje, d.o.o. Cesta 24., junija 90, SI 1231 Ljubljana - Ĉrnuče, Slovenia
Tobačna Grosist d.o.o. Slovenia Marketing and distribution in Slovenia
Cesta 24., junija 90, SI 1231 Ljubljana - Ĉrnuče, Slovenia
Tobačna Ljubljana d.o.o. (v) Slovenia Sales and marketing tobacco products in Slovenia
Cesta 24., junija 90, SI 1231 Ljubljana - Ĉrnuče, Slovenia

Notes to the Financial Statements

27. Related undertakings (continued)

Subsidiaries: Incorporated overseas, wholly owned (continued)

Country of
Name incorporation Principal activity and registered address
Tobamark International SA France Trademark owner
143 bd Romain Rolland, Cedex 14, Paris, 75685, France
Urex Inversiones SA Spain Holding investments in subsidiary companies
Parque Empresarial Cristalia, Vía de los Poblados, 3, Edificio 7/8,
Madrid, 28033, Spain
Universal Brands, S.A. Spain Trademark owner
C/Comandaute Azcarraga 5, Madrid 28016, Spain
Van Nelle Tabak Nederland B.V. The Netherlands Manufacture and sale of tobacco products in the Netherlands
(x) Slachtedijk 28a, 8501 ZA, Joure, Netherlands
Van Nelle Tobacco International The Netherlands Sale of tobacco and tobacco related products
Holdings B.V. Slachtedijk 28a, 8501 ZA, Joure, Netherlands
West Park Tobacco Inc. United States of In Dissolution
America c/o CT Corporation System, 4701 Cox Road, Ste 301,Glen
Allen/Richmond, VA 23060-6802, USA

Subsidiaries: Registered in England and Wales, partly owned

%
Name Principal activity and registered address owned
Congar International UK Limited Dormant 63.1
121 Winterstoke Road, Bristol, BS3 2LL, England
Imperial Brands Enterprise Provison of treasury services to other Group companies 42.0
Finance Limited 121 Winterstoke Road, Bristol, BS3 2LL, England
Imperial Tobacco Overseas Holding investments in subsidiary companies 42.0
Holdings (4) Limited 121 Winterstoke Road, Bristol, BS3 2LL, England
La Flor de Copan UK Limited Holding investments in subsidiary companies 63.1
121 Winterstoke Road, Bristol, BS3 2LL, England
Tabacalera de Garcia UK Holding investments in subsidiary companies 63.1
Limited 121 Winterstoke Road, Bristol, BS3 2LL, England

Subsidiaries: Incorporated overseas, partly owned

Country of %
Name incorporation Principal activity and registered address owned
Altadis Holdings USA Inc United States of Holding investments in subsidiary companies 63.1
America 5900 North Andrews Avenue, Ste. 1100, Fort
Lauderdale, FL, 33309, USA
Altadis Management Services United States of Trademark service company 63.1
Corporation America 5900 North Andrews Avenue, Ste. 1100, Fort
Lauderdale, FL, 33309 USA

Notes to the Financial Statements

27. Related undertakings (continued)

Country of %
Name incorporation Principal activity and registered address owned
Altadis Retail Corporation United States of
America
Trademark owner
300 Delaware Avenue, Ste. 1230, Wilmington, DE,
19801, USA
63.1
Altadis Shade Company LLC United States of
America
Manufacture and sale of tobacco products in the USA
217 Shaker Road, Somers, CT, 06071, USA
63.1
Altadis USA Inc United States of
America
Manufacture and sale of cigars in the USA
5900 North Andrews Avenue, Ste. 1100, Fort
Lauderdale, FL, 33309, USA
63.1
CBHC Inc United States of
America
Dormant
5900 North Andrews Avenue, Ste. 1100, Fort
Lauderdale, FL, 33309 USA
63.1
CdM Hallandale, LLC United States of
America
TBC
c/o Corporation Service Company, 1201 Hays Street,
Tallahassee, Florida, 32301, USA
50.0
Cigar Savor Enterprises LLC United States of
America
Manufacture of tobacco products
5900 North Andrews Avenue, Ste. 1100, Fort
Lauderdale, FL, 33309 USA
63.1
Commonwealth Brands Inc United States of
America
Manufacture and sale of tobacco products in the USA
301 N. Scales Street, Reidsville, North Carolina,
NC27320 USA
63.1
Commonwealth-Altadis, Inc United States of
America
Sales and distribution of tobacco products in the USA
5900 North Andrews Avenue, Ste. 1100, Fort
Lauderdale, FL, 33309 USA
63.1
Compagnie Agricole et
Industrielle des Tabacs Africains
SAS
France Management company
143 bd Romain Rolland, Cedex 14, Paris, 75685, France
99.9
Compagnie Agricole et
Industrielle des Tabacs de Cote
D'Ivoire SA, IL (i)
Cote D'Ivoire In liquidation
BP 418 - Bouake, Cote d'lvoire, Cote d'Ivoire
74.6
Compagnie Réunionnaise des
Tabacs SAS
France, St Pierre
(La Reunion Island)
Manufacture of cigarettes
ZI n° 2 - BP 256 - 97457 Saint Pierre Cedex, La Reunion
98.6
Compañía de Distribución
Integral de Publicaciones
Logista SLU (iv)
Spain Distribution of published materials and other products
C/ Trigo, 39 - Polígono Industrial Polvoranca, Leganés,
Madrid, 28914, Spain
50.0
Compañía de Distribución
Integral Logista Holdings, S.A. (iii)
Spain Holding investments in subsidiary companies
C/ Trigo, 39 - Polígono Industrial Polvoranca, Leganés,
Madrid, 28914, Spain
50.0

Notes to the Financial Statements

27. Related undertakings (continued)

Country of %
Name incorporation Principal activity and registered address owned
Compañía de Distribución Poland Distribution of tobacco products in Poland 50.0
Integral Logista Polska, sp. Z
o.o. (SL)
Avenida Jerozolimskie 133/131, 02-304 Varsaw, Poland
Compañía de Distribución Spain Distribution of tobacco products in Spain 50.0
Integral Logista S.A.U. C/ Trigo, 39 - Polígono Industrial Polvoranca, Leganés,
Madrid, 28914, Spain
Congar International Corp United States of Manufacturing and distribution of mass market cigars 63.1
(Delaware) America Road 14, Km. 72.2, Ave. Antonio R. Barcelo, Cayey, DE,
PR 00736, USA
Connecticut Shade Corporation United States of Holding investments in subsidiary companies 63.1
America 5900 North Andrews Avenue, Ste. 1100, Fort
Lauderdale, FL, 33309 USA
Consolidated Cigar Holdings Inc United States of Holding investments in subsidiary companies 63.1
(vii) America 5900 North Andrews Avenue, Ste. 1100, Fort
Lauderdale, FL, 33309, USA
Cuban Cigar Brands BV (v) Netherlands Trademark owner 63.1
Antilles N.V. Fides, 15 Pietermaai, Curaçao, Netherlands
Cyberpoint, S.L.U. Spain Antilles
Distribution of POS software
50.0
C/ Trigo, 39 - Polígono Industrial Polvoranca, Leganés,
Madrid, 28914, Spain
Direct Products Inc (Inactive) United States of Holding investments in subsidiary companies 63.1
America 5900 North Andrews Avenue, Ste. 1100, Fort
Lauderdale, FL, 33309, USA
Distribuidora de Ediciones
SADE, SAU
Spain Distribution of published materials and other products
in Spain
50.0
Calle B, esquina calle 4, s/n. Sector B, Polígono
Industrial Zona Franca, 08040 Barcelona, Spain
Distribuidora de las Rias SA Spain Distribution of published materials and other products 50.0
in Spain
Avda. Cerezos, Parcela D-28, Polígono Industrial
PO.CO.MA.CO , 15190 Mesoiro, La Coruña, Spain
Distribuidora del Este S.A.U. Spain Distribution of published materials and other products 50.0
in Spain
calle Frelix Rodriguez de la Fuente, 11, Parque
Empresarial de Elche, 03203 Elche, Alicante, Spain

Notes to the Financial Statements

27. Related undertakings (continued)

Country of %
Name incorporation Principal activity and registered address owned
Distribuidora del Noroeste SL Spain Distribution of published materials and other products
in Spain
C/ Gandarón, 34, interior, Vigo, Pontevedra, 36214,
Spain
50.0
Dronas 2002, SLU Spain Industrial parcel and express delivery service
Energía, 25-29; Polígono Industrial Nordeste, Sant
Andreu de la Barca, Barcelona, 08740, Spain
50.0
Fabrica de Tabacos La Flor de
Copan S de R.L. de CV
Honduras Holding investments in subsidiary companies
Apartado Postal 209, Colonia Mejia-García, Santa Rosa
de Copán, Honduras
36.2
Imperial Brands Holdings
International B.V.
The Netherlands Provision of finance to other Group companies
Slachtedijk 28a, 8501 ZA, Joure, Netherlands
42.0
Imperial Tobacco Brasil
Comércio de Produtos de
Tabaco Ltda.
Brazil Co-ordinating and monitoring of WEST license
productions and distribution of tobacco products
5th andar (floor), Av. Brig. Faria Lima 3.729, itaim Bib,
Sao Paolo, 04538-905, Brazil
42.0
Imperial Tobacco EFKA
Management GmbH
Germany Manufacture of tobacco products in Germany
Max-Born-Straße 4, Hamburg, 22761, Germany
42.0
Imperial Tobacco Germany
Finance GmbH
Germany Holding investments in subsidiary companies
Max-Born-Straße 4, Hamburg, 22761, Germany
42.0
Imperial Tobacco Hellas S.A. Greece Sales and marketing of tobacco products in Greece
300 Klisthenous Str, 15344 Gerakas, Attikis, Athens,
Greece
99.1
Imperial Tobacco Holdings
International B.V.
The Netherlands Provision of finance to other Group companies
Slachtedijk 28a, 8501 ZA, Joure, Netherlands
42.0
Imperial Tobacco Kyrgyzstan
LLC (i)
Kyrgyzstan Marketing and distribution of tobacco products in
Kyrgyzstan
3 Floor, Prime Business Park, 100/2 Furmanov Str,
Medeuskiy District, Almaty, 050000, Kazakhstan
42.0
Imperial Tobacco TKS a.d. (i) Macedonia Manufacture, marketing and distribution of tobacco
products in Macedonia
ul 11, Oktomvri 125, P O Box 37, 1000 Skopje,
Macedonia
99.1
Imperial Tobacco TKS a.d. -
Dege Kosove
Kosovo Manufacture, marketing and distribution of tobacco
products in Kosovo
Ahmet Krasniqi, Obj.Redoni C1 B Nr 23, Prishtina,
Republic of Kosovo
99.1
Imperial Tobacco US Holdings
BV
The Netherlands Holding investments in subsidiary companies
Slachtedijk 28a, 8501 ZA, Joure, Netherlands
63.1

Notes to the Financial Statements

27. Related undertakings (continued)

Country of %
Name incorporation Principal activity and registered address owned
Imprimerie Industrielle
Ivoirienne SA (i)
Cote D'Ivoire Printing company
Zone Industrielle du Banco, Lots No 147-149-150, 01 BP
4124, Yopougon/Abdjan, Cote d'Ivoire
72.8
ITG Brands Holdco LLC United States of
America
Holding investments in subsidiary companies
714, Green Valley Road, Greensboro, NC 27408, USA
63.1
ITG Brands, LLC United States of
America
Marketing and distribution of tobacco products in the
USA
714, Green Valley Road, Greensboro, NC 27408, USA
63.1
ITG Brands Holdpartner LP United States of
America
Marketing and sale of tobacco products in United
States of America
714 Green Valley Road, Greensboro, NC27408, United
States of America
36.2
ITG Holdings USA Inc (ix) United States of
America
Holding investments in subsidiary companies
C/o The Corporation Trust Co, 1209 Orange Street, City
of Wilmington, County of Newcastle, DE 19801, USA
63.1
La Mancha 2000, S.A., Sociedad
Unipersonal
Spain Logistics services
Av. de la Veguilla, 12-Nave A- Parcela S-120, Cabanillas
del Campo, Guadalajara, 19171, Spain
50.0
Lao Tobacco Limited (i) Laos Manufacture and distribution of cigarettes in Laos
KM 8, Thadeua Road, P O Box 181, Vientiane, Lao
People's Democratic Republic
53.0
Logesta Deutschland Gmbh,
Sociedad Unipersonal
Germany Long haul transportation in Germany
Pilotystrasse, 4, 80538 München, Germany
50.0
Logesta France SARL France Long haul transportation in France
Inmeuble Le Bristol, 27 Avenue des Murs du Parc,
94300 Vincennes, France
50.0
Logesta Gestión de Transporte
SAU
Spain Long haul transportation services in Spain
C/ Trigo, 39 - Polígono Industrial Polvoranca, Leganés,
Madrid, 28914, Spain
50.0
Logesta Italia, S.R.L., Sociedad
Unipersonal
Italy Long haul transportation in Italy
Via Valadier, 37 - 00193 Roma, Italy
50.0
Logesta Lusa LDA Portugal Long haul transportation in Portugal
Expanso da Area Industrial do Passil, Edificio Logista,
Lote 1A, Palhava, Alcochete, Portugal
50.0
Logesta Polska Sp Zoo Poland Long haul transportation in Poland
Aleje Jerozolimskie 133/32, 02/304 Varsovia, Poland
50.0
Logista France Holding SA France Holding investments in subsidiary companies
Inmeuble Le Bristol, 27 Avenue des Murs du Parc,
94300 Vincennes, France
50.0

Notes to the Financial Statements

27. Related undertakings (continued)

Country of %
Name incorporation Principal activity and registered address owned
Logista France SAS France Holding investments in subsidiary companies
Inmeuble Le Bristol, 27 Avenue des Murs du Parc,
94300 Vincennes, France
50.0
Logista Italia Spa Italy Long haul transportation in Italy
Via Valadier, 37 - 00193 Roma, Italy
50.0
Logista Pharma SA Spain Distribution of pharmaceuticals
Industria, 53-65, Poligono Industrial Nordeste, 08740,
Sant Andreu de la Barca, Barcelona, Spain
50.0
Logista Pharma Canarias, SA Spain Pharmaceutical products logistics in Canary Islands
C/ Entreríos Nave 3; Las Palmas de Gran Canaria,
35600, Spain
50.0
Logista Promotion et Transport
SAS
France Marketing and distribution of tobacco products in
France
Inmeuble Le Bristol, 27 Avenue des Murs du Parc,
94300 Vincennes, France
50.0
Logista, Transportes,
Transitários e Pharma, Lda.,
Sociedad Unipersonal
Portugal Industrial parcel delivery and pharmaceutical logistics
in Portugal
Expanso da Area Industrial do Passil, Edificio Logista,
Lote 1A, Palhava, Alcochete, Portugal
50.0
Logista-Dis SAU Spain Sale of tobacco products in Spain
C/ Trigo, 39 - Polígono Industrial Polvoranca, Leganés,
Madrid, 28914, Spain
50.0
MABUCIG (Manufacture
Burkinabe de Cigarette)
Burkina Faso Manufacture of cigarettes in Burkina Faso
Zone Industrielle de Bobo-Dioulasso, Secteur No 19,
Rue 19.14 No adressage 55, B.P. 94 - Bobo Dioulasso,
Burkina Faso
72.7
Macotab SAS (Manufacture
Corse des Tabacs)
France, Bastia Manufacture and sales of cigarettes
Route Nationale 193, Furiani, 20600, France
99.9
Manufacture de Cigarettes du
Tchad SA
Tchad Manufacture and distribution of cigarettes in Chad
0502 rue 1039, Arrondissement 1, N'DJamena, Chad
95.0
Max Rohr, Inc United States of
America
Trademark owner
300 Delaware Avenue, Ste. 1267, Wilmington,
DE,19801, USA
63.1
Midsid – Sociedade Portuguesa
de Distribução, S.A., Sociedad
Unipersonal
Portugal Wholesale of tobacco and other products
Expanso da Area Industrial do Passil, Edificio Logista,
Lote 1A, Palhava, Alcochete, Portugal
50.0
MTOA SA (i) Senegal Manufacture and sales of cigarettes in Senegal
Km 2-5 Bld du Centenaire de la commune de Dakar,
Dakar, Senegal
97.3

Notes to the Financial Statements

27. Related undertakings (continued)

Country of %
Name incorporation Principal activity and registered address owned
NITAF Limited, IL (i) Nigeria In liquidation
28, Ground Floor, Ajasa Street, Off King George V Road,
Onikan, Lagos, Nigeria
50.0
Promotora Vascongada de
Distribuciones SA
Spain Distribution of published materials and other products
in Biscay and Santander
C/ Guipúzcoa, 5, Polígono Industrial Lezama
Leguizamón, 48450 Echevarri, Vizcaya, Spain
50.0
Publicaciones y Libros SA Spain Publishing company
C/ Trigo, 39 - Polígono Industrial Polvoranca, Leganés,
Madrid, 28914, Spain
50.0
REEMARK Gesellschaft für
Markenkooperation mbH
Germany Dormant
Max-Born-Straße 4, Hamburg, 22761, Germany
42.0
Reemtsma Cigarettenfabriken
GmbH
Germany Manufacture and sale of tobacco products in Germany
Max-Born-Straße 4, Hamburg, 22761, Germany
42.0
Reemtsma Kyrgyzstan OJSC (i) Kyrgyzstan Manufacture and sale of tobacco products in
Kyrgyzstan
249 Ibraimov Street, Bishkek, Kyrghyz Republic,
720011, Kyrgyzstan
41.9
S3T Pte Ltd (i) Singapore Holding investments in subsidiary companies
80 Robinson Road, #02-00, 068898, Singapore
51.0
SACIMEM SA (i) Madagascar Manufacture of cigarettes in Madagascar
110 Antsirabe - Madagascar, Route d'Ambositra, BP
128, Madagascar
65.4
SITAB Industries SA (i) Cote D'Ivoire Manufacture of cigarettes in Cote D'Ivoire
Rue de I'Industrie - Lot No 19, 01 - BP 607, Bouake,
Cote d'Ivoire
80.5
SITAR Holding SAS France (La Reunion
Island)
Holding investments in subsidiary companies
Z.I n2, B.P. 256, 97457 Saint Pierre, IIe de la Reunion,
France
99.0
Société Africaine d'Impression
Industrielle SA (i)
Senegal Manufacture and distribution of cigarettes in Senegal
route de Bel Air - Km 2200, Dakar, Senegal
99.8
Société Allumettiere Française
SAS
France Manufacture and distribution of cigarettes
Inmeuble Le Bristol, 27 Avenue des Murs du Parc,
94300 Vincennes, France
50.0
Société des Cigarettes
Gabonaises SA (i)
Gabon In liquidation
2381 bld Léon MBA, BP 2175, Libreville, Gabon
87.8
Société Industrielle et Agricole
du Tabac Tropical SA (i)
Congo Manufacture and distribution of cigarettes in Congo
Avenue de la Pointe Hollandaise, Mpila, BP 50,
Brazzaville, Congo
89.7

Notes to the Financial Statements

27. Related undertakings (continued)

Subsidiaries: Incorporated overseas, partly owned (continued)

Country of %
Name incorporation Principal activity and registered address owned
Société Ivoirienne des Tabacs
SA (i) (iii)
Cote D'Ivoire Manufacture and distribution of cigarettes in Ivory
Coast
Cocody-Nord, Quartier Gendarmerie, TF 5937, 01 B.P.
724 Abidjan
74.1
Société Marocaine des Tabacs
SA
Morocco Manufacture and distribution of cigarettes in Morocco
Boulevard La Corniche, Anfa Place, Immeublep
Bureaux Batiments Ousst, Casablanca, 20180,
99.9
SOCTAM SA (i) Madagascar Morocco
Manufacture and distribution of cigarettes in Mali
15 Rue Geoges V, Mahajanga, Madagascar
50.5
SOTCHADIS SAS Chad Non-trading
502 Rue 1039, BP 852, N'Djamena, Chad
95.0
Supergroup SAS France Wholesale of tobacco products
Inmeuble Le Bristol, 27 Avenue des Murs du Parc,
94300 Vincennes, France
50.0
Tabacalera Brands Inc United States of
America
Trademark owner
300 Delaware Avenue, Ste. 1267, Wilmington, DE
19801, USA
63.1
Tabacalera de Garcia Limited Bermuda Holding investments in subsidiary companies
Claredon House, 2 Church Street, Hamilton, HM 11,
Bermuda
63.1
Von Erl. Gmbh (i) Austria Sale of e-vapour products in the US and Europe
Alte Landstrasse 27, 6060 Hall in Tirol, Austria
60.0

Associates: Registered in England and Wales

%
Name Principal activity and registered address owned
C H (Downton) Limited (ix) Dormant 25.0
Hurlingham Business Park, Sulivan Road, London, SW6
3DU, England
F J (Downton) Limited Dormant 25.0
Hurlingham Business Park, Sulivan Road, London, SW6
3DU, England
Hunters & Frankau Limited Dormant 25.0
Hurlingham Business Park, Sulivan Road, London, SW6
3DU, England
Incentive Marketing Services (UK) Limited Dormant 25.0
Hurlingham Business Park, Sulivan Road, London, SW6
3DU, England

Notes to the Financial Statements

27. Related undertakings (continued)

Associates: Registered in England and Wales

Name
Jacon Financial Services Limited (ix)
Dormant
25.0
Hurlingham Business Park, Sulivan Road, London, SW6
3DU, England
Joseph Samuel & Son Limited
Dormant
25.0
Hurlingham Business Park, Sulivan Road, London, SW6
3DU, England
Knight Brothers Cigar Shippers Limited
Dormant
25.0
Hurlingham Business Park, Sulivan Road, London, SW6
3DU, England
Lancha House Limited
Dormant
25.0
Hurlingham Business Park, Sulivan Road, London, SW6
3DU, England
Melbourne Hart & Company Limited
Dormant
25.0
Hurlingham Business Park, Sulivan Road, London, SW6
3DU, England
Melbourne Hart Holdings Limited (ix)
Dormant
25.0
Hurlingham Business Park, Sulivan Road, London, SW6
3DU, England
Morris & Morris Limited
Dormant
25.0
Hurlingham Business Park, Sulivan Road, London, SW6
3DU, England
Tabaco Torcido Traders Limited
Dormant
25.0
Hurlingham Business Park, Sulivan Road, London, SW6
3DU, England
The English Import Company Limited
Dormant
25.0
Hurlingham Business Park, Sulivan Road, London, SW6
3DU, England
Tropic Tobacco Company Limited
Dormant
25.0
Hurlingham Business Park, Sulivan Road, London, SW6
3DU, England
Associates: Incorporated overseas
Country of
Name
incorporation
Principal activity and registered address
owned
Distribution of Cuban cigars in Germany
5th Avenue Products Trading
Germany
27.5
GmbH (i) (iv)
Schwarzenbergstr. 3-7 ; Waldshut-Tiengen, 79761,
Germany
Holding investments in subsidiary companies
Azur Finances SA
Cameroon
20.0
B.P 1105, Douala, Cameroon
%
Principal activity and registered address owned
%

25.0

Notes to the Financial Statements

27. Related undertakings (continued)

Associates: Incorporated overseas (continued)

Country of %
Name incorporation Principal activity and registered address owned
Cosmic Fog Vapours Company
LLC
United States of
America
Trademark owner, and sale of e-vapour products in
USA and Europe
C/O The Corporation Trust Co, 1209 Orange Street, City
of Wilmington, County of Newcastle, DE19801 USA
40.0
Diadema Spa (i) Italy Distribution of Cuban cigars in Italy
Via delle Terme Deciane, 10, Partita IVA 01213650995,
Codice Fiscale 01374280509, 00153 Rome, Italy
30.0
Distribuidora de Publicaciones
del Sur, S.A.
Spain Distribution of published materials and other products
Carretera de la Esclusa, S/N - Pariela 2, Modulo 4,
Sevilla, 41011, Spain
25.0
Distribución de Publicaciones
Siglo XXI, Guadalajara
Spain Distribution of published materials and other products
in Spain
Francisco Medina y Mendoza, 2, 19171 Cabanillas del
Campo, Guadalajara, Spain
40.0
Distribuidora Valenciana de
Ediciones S.A.
Spain Distribution of published materials and other products
in Valencia
Pedrapiquers, 5; Polígono Industrial Vara de Quart,
46014 Valencia, Spain
25.0
DTPU Kaliman Caribe Dooel
Scopje
Macedonia Distribution of Cuban cigars in Macedonia
5 Luj Pater Str., 1000 Scopje Center, Macedonia
25.0
Entreprises des Tabacs en
Guinée (i)
Guinée Conakry Dormant
B.P 3391, Conakry, Guinea
34.0
Havana House Cuban Products
Specialist Limited (i)
New Zealand Distribution of Cuban cigars in New Zealand
Level 16, 66 Wyndham Street, Auckland, New Zealand
25.0
Havana House Limited (i) Canada Distribution of Cuban cigars in Canada
9 Davies Avenue, Suite 112, Toronto ON, M4M 2A6,
Canada
25.0
Importadora y Exportadora de
Puros y Tabacos SA DE CV (IEPT)
(i)
Mexico Marketing and distribution of Cuban cigars in Mexico
Presidente Mazaryk numero 393 local 28, colonia
Polanco, C.P. 11560 Delegación Miguel Hidalgo México
D.F., Mexico
25.0
Intertabak AG (i) Switzerland Distribution of Cuban cigars in Switzerland and
Liechtenstein
Intertabak AG, Salinenstrasse 61, CH-4133 Pratteln,
Entrepots: Salinenstrasse, 63, Switzerland
25.0
Kaliman Caribe doo Beograd Serbia Distribution of Cuban cigars in Serbia
5 Igmanska Str., Beograd, Serbia
25.5

Notes to the Financial Statements

27. Related undertakings (continued)

Associates: Incorporated overseas (continued)

Country of %
Name incorporation Principal activity and registered address owned
Kaliman Caribe ood Bulgaria Distribution of Cuban cigars in Bulgaria
118 Bulgaria Blvd., Abacus Business Center, fl. 2, 1618
Sofia, Bulgaria
25.5
Kaliman Caribe Tirana Sh. p.k. Albania Distribution of Cuban cigars in Albania
Sheraton Tirano Hotel and Tower, Italia Sq., fl. 1,
Tirana, Albania
25.5
Kaliman Caribe yer LLC Armenia Distribution of Cuban cigars in Armenia
V. Papazyan / 16a/ 17; Yerevan, 0012, Armenia
25.5
Lippoel Tobacco Corporation
International NV
Netherlands
Antilles
Distributor of Cuban leaf
Pietermaai 123, P.O. BOX 897. Willemstad, Curacao,
Netherlands Antilles
27.5
Logista Libros SL Spain Distribution of books
Avda. Castilla La Mancha, 2 - Naves 3-4 del Polígono
Industrial La Quinta, Cabanillas del Campo,
Guadalajara, Spain
25.0
Manufacture Mauritanienne
des Tabacs
Mauritanie Manufacture and import of tobacco products
Nouakchott, Mauitanie
34.6
Maori Tabacs, S.A. (i) Andorra Distribution of Cuban cigars in Andorra
Av. Pont De La Tosca, 13, Andorra
25.0
New Mentality Limited (i) British Virgin
Islands
In liquidation
Portcullis TrustNet Chambers, Road Town, Tortola,
3444, British Virgin Islands
25.0
Pacific Holding (Thailand)
Company Limited (i) (vi)
Thailand Holding investments in subsidiary companies
39/7 Soi Ruamrudee 2, Ploenchit Road, Lumpini,
Pathumwan, Bangkok 10330 Thailand
25.0
Phoenicia Beirut SAL (i) Lebanon Retail in Lebanon
New Starco Center, Sixth Floor, Beirut Central District,
Lebanon
25.0
Phoenicia TAA Cyprus Ltd (i) Cyprus Distribution of Cuban cigars in the Middle East and
Africa
249, 28 Oct Street, Lophitis Business Center, Limassol,
3035, Cyprus
25.0
Pit Stop Limited (i) British Virgin
Islands
In liquidation
Portcullis TrustNet Chambers, Road Town, Tortola,
3444, British Virgin Islands
25.0
Promotion et Distribution a
Madagascar (i)
Madagascar Distribution of cigarettes in Madagascar
Tour ZITAL Ankorondrano, Antananarivo, Madagascar
33.4
Société Internationale des
Tabacs Malgaches (i)
Madagascar Leaf processing
BP 270, 401 Mahajanga, Madagascar
47.9

Notes to the Financial Statements

27. Related undertakings (continued)

Associates: Incorporated overseas (continued)

Country of %
Name incorporation Principal activity and registered address owned
Société Nationale des Tabacs et Mali Manufacture and distribution of cigarettes in Mali 28.0
Allumettes du Mali SA (i) Route Sotuba - Z.I., BP 59, Bamako, Mali
Terzia SPA Italy Wholesale to tobacconists in Italy 34.0
Via Valadier, 37 - 00193 Roma, Italy
The Pacific Cigar (Thailand) Co Thailand Distribution of Cuban cigars in Thailand 25.0
Limited (i) (vii) 25 Alma Link Building, 2nd Floor, Soi Chidlom, Ploenchit
Road, Kwaeng Lumpinee, Khet Patumwan, Bangkok
Metropolis, Bangkok, Thailand
The Pacific Cigar Co. (Singapore) Singapore Distribution of Cuban cigars in Singapore 25.0
Pte Limited (i) 150 Cecil Street, #15-01, 069543, Singapore
The Pacific Cigar Company Australia Distribution of Cuban cigars in Australia 25.0
(Australia) Pty Limited (i) 17/23, Bowden Street Australia, Alexandria, NSW 2015,
Australia
The Pacific Cigar Company Macau Distribution of Cuban cigars in Macau 25.0
(Macau) Limited (i) Avenida Praia Grande No. 369-371, Edif. Keng Ou 8
Andar, A, Macau
The Pacific Cigar Company Malaysia Dormant 25.0
(Malaysia) SDN BHD (i) 83A, Jalan SS15/5A, 47500 Subang Jaya, Selangor Darul,
Ehsan, 47500, Malaysia
The Pacific Cigar Company (New New Zealand Distribution of Cuban cigars in New Zealand 25.0
Zealand) Limited (i) Level 16, 66 Wyndham Street, Auckland, New Zealand
The Pacific Cigar Company China Distribution of Cuban cigars in Asia 25.0
Limited (i) 21/F., Guangdong Investment Tower, 148 Connaught
Road Central, Hong Kong
The Pacific Cigar International British Virgin Distribution of Cuban cigars in Asia 25.0
Co Limited (i) Islands Akara Bldg., 24 De Castro Street, Wickhams Cay I, Road
Town, Tortola, British Virgin Islands

Joint Ventures: Incorporated overseas

Country of %
Name incorporation Principal activity and registered address owned
Altabana SL (i) Spain Holding investments in subsidiary companies involved
in the marketing and sale of Cuban cigars
Paseo de la Castellana, 143 - 10ºA, Madrid, 28046,
Spain
50.0
Comercial Iberoamericana SA (i) Spain Wholesale and distribution of tobacco products
Paseo de la Castellana, 143 - 10ºA, Madrid, 28046,
Spain
50.0

Notes to the Financial Statements

27. Related undertakings (continued)

Joint Ventures: Incorporated overseas (continued)

Country of %
Name incorporation Principal activity and registered address owned
Compañía de Distribución
Integral Logista S.A.U. y GTECH
Global Lottery, S.L.U., U.T.E.
Spain Services and distribution
C/ Trigo, 39 - Polígono Industrial Polvoranca, Leganés,
Madrid, 28914, Spain
25.0
Corporación Habanos SA (i) Cuba Export of cigars manufactured in Cuba
Centro de Negocios Miramar, Edificio Habana, 3ra.
Planta, Avenida 3ra. e/ 78 y 80, C.P.: 11300, Cuba
50.0
Coprova SAS (i) France Distribution of Cuban cigars in France
171 Avenue Jean Jaures - Paris CEDEX 19, 75927,
France
50.0
Cuba Cigar, S.L. (i) Spain Distribution of Cuban cigars in the Canary Islands
Avenida Andrés Perdomo S/N, Edificio de Zona Franca,
Planta Baja, Puerto de la Luz (Las Palmas de Gran
Canaria), 35008, Spain
50.0
Cubacigar (Benelux) N.V. (i) Belgium Distribution of cigars in Belgium
Reutenbeek, 5 - 3090 Overijse, Belgium
50.0
Dalso, S.R.L. (i) Dominican
Republic
Distribution of Cuban cigars in Republic Dominican
Avenida Gustavo Mejía Ricart esquina Avenida
Abraham Lincoln, Torre Piantini, sexto piso, Ensanche
Piantini, Santo Domingo, Distrito Nacional, Dominican
Republic
50.0
Empor - Importação e
exportação, SA (i)
Portugal Distribution of tobacco products in Portugal
Rua João Santos, Lote 2, Lisboa, 1300-325, Portugal
50.0
Global Horizon Ventures
Limited
Hong Kong Sales and marketing of cigarettes in Asia
Room 3907-08, 39th Floor, Hopewell Centre, 183
Queens Road East, Wanchai, Hong Kong
50.0
Habanos Nordic AB (i) Sweden Distribution of Cuban cigars in Scandinavia
August Barks gata 30B SE-42132 Västra Frölunda -
Sweden
50.0
Infifon APS (i) Denmark Holding investments in subsidiary companies
21, INFIFON ApS, Harbour House, Sundkrogsgade, 2100
Copenhagen, Denmark
50.0
Infifon Hong Kong Limited (i) China Distribution of Cuban cigars in China
21/F, Guangdong Investment Tower, 148 Connaught
Road Central, Hong Kong
50.0
Infifon I, BV (i) The Netherlands Holding investments in subsidiary companies
Parklaan 34, Rotterdam, 3016 BC, Netherlands
50.0
Infifon II NV (i) Netherlands
Antilles
Distribution of Cuban cigars in Russia
Van Engelenweg 23, Curaçao, Netherlands Antilles
50.0

Notes to the Financial Statements

27. Related undertakings (continued)

Joint Ventures: Incorporated overseas (continued)

Country of %
Name incorporation Principal activity and registered address owned
International Cubana de Tabaco Cuba Manufacture of cigarillos in Cuba 50.0
SA (i) Ave. Independencia #34501 entre Ave. 345 y 1ºde
Mayo, Municipio Boyeros, Ciudad de La Habana, Cuba
Intertab SA (i) Switzerland Holding investments in subsidiary companies 50.0
Société Fiduciaire Suisse-Coopers & Lybrand S.A., Route
de la Glâne 107, Villars-sur-Glâne, 1752, Switzerland
Promotora de Cigarros SL (i) Spain Sales and marketing of cigars manufactured in Cuba 50.0
Parque Empresarial Cristalia, Vía de los Poblados, 3,
Edificio 7/8, Madrid, 28033, Spain
Puro Tabaco SA (i) Argentina Distribution of Cuban cigars in Argentina and Chile 50.0
Lavalle 445, Piso 1, Buenos Aires, Argentina
Top Cigars Corporation LLC (i) Russia Distributor of Habanos in Russia 50.0
Dimitrovskoe shosse 167, 127204 Moscow, Russian
Federation
Xinet SA (i) Uruguay Dormant 50.0
Ciudadela 1373, Montevideo, Uruguay

Partnerships

The Group also owns the following partnerships:

Principal activity, registered address and principal place of
Name Country business
Imperial Tobacco Kazakhstan
LLP (i)
Kazakhstan Marketing and distribution of tobacco products in Kazakhstan
Registered address and principal place of business: 3rd Floor,
Prime Business Park, 100/2 Furmanov Str, Medeuskiy District,
Almaty, 050000, Kazakhstan
Imperial Tobacco (Efka) GmbH
& Co. KG
Germany Manufacture of tubs in Germany
Registered address: Postfach 1257, Industriestrasse 6,
Trossingen, 78636, Germany
Principal place of business: Industriestrasse 6, Postfach 1257, D
78636 Trossingen, Germany

Notes to the Financial Statements

27. Related undertakings (continued)

The subsidiaries listed were held throughout the year and the consolidated Group financial statements include all the subsidiary undertakings identified. All dormant UK entities have taken the exemption available to not have an audit of their financial statements.

Unless otherwise stated the entities are unlisted, have 1 type of ordinary share capital and a reporting period ending on 30 September each year.

  • (i) December year end
  • (ii) March year end
  • (iii) Listed entity
  • (iv) Holding of one type of ordinary share only (where more than one type of share is authorised / in issue). Only applicable to partly owned entities - percentage ownership is shown in the tables above.
  • (v) Holding of two types of ordinary share (where more than one type of ordinary share is authorised / in issue).
  • Only applicable to 100% owned subsidiaries.
  • (vi) Holding of preference shares only
  • (vii) Holding of ordinary and preference shares
  • (viii) Holding of ordinary and redeemable shares
  • (ix) Holding of ordinary and deferred shares
  • (x) Holding of two types of ordinary share and redeemable shares

The percentage of issued share capital held by the immediate parent and the effective voting rights of the Group are the same except for Imperial Tobacco Italia Srl where the entire share capital, and therefore 100 per cent of the voting rights, are held by a number of Group companies, and Compañía de Distribución Integral Logista SAU, Logista France SAS, and Logista Italia SpA are 100 per cent owned subsidiaries of Compañía de Distribución Integral Logista Holdings SA, which is itself 50.01 per cent owned by Altadis SAU.

Talk to a Data Expert

Have a question? We'll get back to you promptly.