Imperial Tobacco The Imperialist 3 | Page 2

#From the 1st Person DEAR COLLEAGUES, Welcome to the summer edition of our e-magazine. This edition is featuring many significant events for our company and the key focus is the myblu launch in Russia: our new product in a totally new market segment – electronic nicotine delivery systems. E-vapour market is an emerging market not only in Russia, but also abroad. The myblu e-vapour is present in seven countries so far: USA, Great Britain, France, Italy, Germany, Russia and Japan. Development of next-generation products is a priority not only for Imperial Brands, but also for the entire industry – all the largest tobacco manufacturers are working on developing such products. We are eager to offer our clients less harmful alternatives of nicotine delivery, support developments in this area and are trying to shape favorable regulation environment. While myblu is gaining popularity, traditional tobacco products still constitute a major bulk of our business, and I am happy to highlight some of our achievements. Success of our incentive program for employees ‘Maxim Bank’ is overwhelming: sales teams across Russia have already received more than RUB 9.5 M remuneration, having sold almost 95 % of the sales volume of the previous six months period. Other brands of our portfolio are also improving their positions – you will find more about the activities of P&S, Davidoff, and Jadé brands in the magazine. Dynamics of the FMCG market establish rules of the game for all participants, and this, of course, has implications for our work and structure. For the past year, we successfully re-organized our planning department within I&I function and substantially improved our market forecasts – check out an exciting interview with the team in the magazine. This year changes will affect the finance department – in the frame of the on-going Finance Shared Services (FSS) project transaction-based operations will be handed over to our global partner – in this edition, the project team gives more details about the transfer processes. The next issue of The Империалист will be published in the autumn. We will summarize the results of the 2018 financial year and tell you about our plans for the next year. To conclude, I would like to thank everyone for their excellent work, drive and ambitions to move towards our goals. Our successes and achievements would not have been possible without contribution from and commitment of each and every one of you! THE IMPERIALIST IS AN IN-HOUSE PUBLICATION OF IMPERIAL TOBACCO SALES AND MARKETING IN RUSSIA AND CENTRAL ASIA. IT IS INTENDED ONLY FOR THE COMPANY EMPLOYEES AUTHORS: Ksenia Puganova Anna Kovryga Lubomir Panov Yana Davtyan Elina Vedyaeva DESIGN AND LAYOUT: Press Pass, LLC Oliver Kutz, General Manager, Russia and Central Asia Cluster Thanks to all the employees of Imeprial Tobacco Group for their help. The Империалист |  | 2