Imperial Tobacco The Imperialist 3 | Page 4

#Brands OUR BRANDS ARE OUR SUCCESS DRIVERS P&S is our unchallenged leader! In 2017, we celebrated the successful launch of P&S crushball in the new Queen Size format that yielded an amazing result: the brand’s share in the Russian market grew by 1.7%, and the sales volume of the brand across the country increased 7 times. To remain demanded in the highly competitive Russian tobacco market, today we should search for new insights, offer desired formats, and, the most essential – meet consumers’ expectations and needs. In this situation, it is important for the brand to be in line with the modern trends and speak to consumers. During the past financial year we have launched several new products in the Russian market, supported the launches with a whole range of efficient projects, and entered the vaping category that is new for us. Let’s talk about everything one by one. Yet, Imperial Tobacco never stops at what has been accomplished: and the new launch of P&S DUO Purple with the trendy berry flavor took place in July 2018. Today, P&S is one of the TOP-10 cigarette brands in the country and gained a 2.82% share in the Russian market in less than three years. In addition to the traditional and popular series Gold and Classic, in 2018 Davidoff presented the new exclusive product to the consumers – Davidoff Reach. Davidoff Reach is an unrivaled combination of the modern style and uncompromising quality of Davidoff. The Davidoff Reach product range includes two SKU: a classic one and with a berry crushball. Davidoff Reach Purple cigarettes are our unique novelty combining all advantages of the premium brand: a crushball with the berry flavor, a firm-touch filter and the smoky odor reduction technology. CRUSHBALL CIGARETTES IN THE RUSSIAN MARKET 6.33% BY CRUSHBALL INCREASED IN FY 2018, AND HELD A 14.4% MARKET SHARE IN JULY 11.2% 7.27% MOST POPULAR FORMAT – QS OTHER FLAVORS GETTING MORE POPULAR 0.82% WATERMELON 0.55% GREEN APPLE MOST POPULAR FLAVOR – BERRY Martin Chromy, Head of Sales and Marketing Operations Russia and Central Asia Cluster: “We have created a product that is ideal for the Russian market – a product that will satisfy tastes of 10 million smokers.” The new Davidoff was launched not only in Russia, but also in Kazakhstan. The P&S and Davidoff brand teams presented the new flavor at the berry theme parties in the Moscow and Almaty offices. The Империалист |  | 4