Annual report 2010 - Imperial Tobacco Group

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Corporate Responsibility continuedStrategy Performance Governance FinancialsOccupational Health and Safety Management (OHS)We have a strong commitment to improve our OHS controls.Examples of our performance are below:––We further extended our ‘Deal with It’ behavioural safetytraining programme with training completed in our factoriesin Western and Eastern Europe, Africa and Asia.––We held regional bi-annual training workshops for OHSsite managers.––We continued to progress independent certification forour OHS activities with 15 of our sites achieving OHSAS18001 certification.Our verified lost time accident rate for 2009 was broadlystable at 1.57 (2008: 1.56). Improvements throughout ourmanufacturing operations were offset by increases in salesand marketing and support functions and we are takingsteps to improve this.Provisional data for 2010 indicates that our occupationalhealth and safety performance has significantly improved.The number of major injuries increased, with 16 events in2009 compared to nine in 2008. We operate in some difficultregions of the world and take our responsibilities regardingthe personal security of our employees seriously. Regrettablythere was one fatality when a security guard was shot inMadagascar. We have reviewed and strengthened securityprocedures to address the increasing level of security threatsin the country.Following the previous fatality at our Nottingham factoryof a DHL driver, the Health and Safety Executive (HSE)subsequently investigated and prosecuted both ImperialTobacco and DHL for whom the driver worked. In August2010, we both pleaded guilty to the charges but the judgeaccepted that these did not cause or contribute to thedriver’s death. The training, assessment and supervisoryissues identified were immediately rectified after the accidentand best practice in regard to trailer parking was sharedacross the business.Environmental Performance 1Our 2009 environmental performance remained on trackto meet our energy and waste to landfill reduction targetsand we have made good progress in reducing our waterconsumption in line with our overall target.Our performance on environmental waste and absolutecarbon dioxide (CO 2) emissions was affected by theinclusion of Altadis data and factory restructuring activities.We are committed to reducing our carbon emissions andenvironmental waste and have developed a carbon savingtarget of 20 per cent by 2020. CO 2 trends were alsodistorted by changes in the Greenhouse Gas Protocolconversion factors and UK DEFRA guidelines which weuse to inform our reporting.Examples of our performance are below:––Energy consumption per million cigarette equivalents wasdown 14 per cent since 2001 (target down 10 per cent).––Waste to landfill per million cigarette equivalents was downby 26 per cent since 2004 (target down 15 per cent).––Water consumption per million cigarette equivalents wasdown 12 per cent since 2001 (targets are set locally).––CO 2 emissions per million cigarette equivalents were down0.37 per cent since 2001 (target down 10 per cent).––Waste per million cigarette equivalents was up 4 per centsince 2004 (target down 10 per cent).––We responded to 16 minor environmental complaintsfor noise, dust or odour and we sought to understandthe issues and find remedial solutions in line with ourstandard practice.––We extended ISO 14001 accreditation, with 69 per centof our manufacturing sites now covered.––We conducted independent energy audits at11 manufacturing sites, with promising energysaving opportunities identified.More detailed environmental measures are available on ourwebsite www.imperial-tobacco.com/cr.Lost Time Accident Frequency Rateper 200,000 hours1 Our 2009 environmental data covers all manufacturing sites exceptthe non-EU cigar sites which have been brought into reporting for2010. Environmental data is reported 12 months in arrears to allowfor verification.3.02.52.01.52.21Lost time accidents (LTAs) are work-related accidentsresulting in absence from one or more scheduled workdaysor shifts. Our LTA frequency rate for 2009 (for all operationsexcept Logistics) remained stable.1.01.551.561.570.50.00607080946
Environmental Performance 1Absolute CO 2 Emissions(Scope 1 and Scope 2):Manufacturing Sites and Main OfficesTonnes CO 2CO 2 Emissions(Scope 1 and Scope 2):Tobacco ManufacturingTonnes CO 2 per million cigarette equivalents300000250000200000150000BaseYear266,860FY10Target240,173254,965265,9780.60.50.40.30.620.430.490.61100000500000114,92501 1007 08 090107 08 09Increases in CO 2for 2009 were largely due to the inclusion of two facilities that use CO 2to expand tobacco. We are currently evaluating theoptions to improve our current CO 2recycling at these facilities. We use the Greenhouse Gas Protocol and UK DEFRA guidelines to informour reporting. The reported increase in CO 2emissions in recent years also reflects changes in these guidelines. Scope 1 carbon emissionsare emissions from sources that we own or control, also known as direct emissions. Scope 2 carbon emissions are emissions from anothercompany, for example purchased electricity, heat, cooling or steam.0.20.10.0Energy Consumption:Tobacco ManufacturingKilowatt hours per million cigarette equivalentsWater Consumption (mains & abstracted):Tobacco ManufacturingCubic metres per million cigarette equivalents30002500200015001000BaseYear2,264FY10Target2,0381,7632,0391,9385.04.03.02.04.343.923.753.805001.000110We improved our energy efficiency in 2009 and remain on track fora 10 per cent reduction on our base year by the end of 2010.070809001Water conservation and protection is managed locally and we haveset reduction targets in a number of countries identified as being atrisk from water scarcity.070809Waste:Tobacco ManufacturingTonnes per million cigarette equivalentsWaste to Landfill:Tobacco ManufacturingTonnes per million cigarette equivalents0.120.100.080.060.040.02BaseYear0.118FY10Target0.1120.1040.1080.1230.0300.0250.0200.0150.0100.005BaseYear0.027FY10Target0.0230.0110.0180.0200.000410The increase in waste in 2009 was largely due to integrationactivities including construction projects.0708090.0000410Despite increased total waste, our waste to landfill has reduced by26 per cent since 2004, reflecting our excellent progress with ourrecycling initiatives.07080947
Page 1 and 2: Imperial Tobacco Group PLCAnnual Re
Page 3 and 4: …to deliver sustainableshareholde
Page 5 and 6: Operational HighlightsDelivering Su
Page 7 and 8: and product portfolio to evolving c
Page 9 and 10: In this section9 Strategic Review10
Page 11 and 12: Our StrategyWe are focused on deliv
Page 13 and 14: Total Tobacco5 % Our Powerful Brand
Page 15 and 16: Our global strategic cigarette bran
Page 17 and 18: Our global team is fully aligned be
Page 19 and 20: Satisfying consumers and aligning o
Page 21 and 22: We are a responsive business with s
Page 23 and 24: Operating responsibly, combined wit
Page 25 and 26: Our growth drivers of sales growth,
Page 27 and 28: Principal Risks and UncertaintiesA
Page 29 and 30: Competition LawOverviewWe take comp
Page 31 and 32: Reconciliation of Adjusted Performa
Page 33 and 34: Key Performance Indicators (KPIs) 1
Page 35 and 36: Lambert & Butler and Richmond remai
Page 37 and 38: Within this the travel retail marke
Page 39 and 40: OutlookThe strength of our portfoli
Page 41 and 42: Blondes. In the Middle East, we aga
Page 43 and 44: Corporate ResponsibilityOur Corpora
Page 45 and 46: Corporate Responsibility and our St
Page 47: We have revised our IMS and employe
Page 51 and 52: across the business. More informati
Page 53 and 54: Supplier RelationshipsOur main supp
Page 55 and 56: Non-financial performance indicator
Page 57 and 58: “High standards of corporategover
Page 59 and 60: 5. Pierre Jungels, CBE (HON), PHD,
Page 61 and 62: Management and Corporate StructureB
Page 63 and 64: Meetings of the Board, Board Commit
Page 65 and 66: and supplemented by our Non-Executi
Page 67 and 68: 6 Performance evaluation: How do we
Page 69 and 70: The Board recognises that we operat
Page 71 and 72: Assurance process for financial rep
Page 73 and 74: - receiving reports from, and quest
Page 75 and 76: Directors’ Report: Other Informat
Page 77 and 78: - state whether IFRSs as adopted by
Page 79 and 80: We understand that a purported coll
Page 81 and 82: This Report covers the following:1
Page 83 and 84: 2 Directors’ Emoluments for the Y
Page 85 and 86: Directors’ Interests in Ordinary
Page 87 and 88: Executive Directors’ Service Agre
Page 89 and 90: When setting base salary the Remune
Page 91 and 92: First ElementFifty per cent of the
Page 93 and 94: In respect of the October 2007 - Oc
Page 95 and 96: Any annual bonus earned up to 100 p
Page 97 and 98: Benefit Trusts have also been provi
Page 99 and 100:
Independent Auditors’ Reportto th
Page 101 and 102:
Consolidated Statement ofComprehens
Page 103 and 104:
Consolidated Statement of Changes i
Page 105 and 106:
Accounting PoliciesBasis of Prepara
Page 107 and 108:
Duty and Similar ItemsDuty and simi
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InventoriesInventories are stated a
Page 111 and 112:
Restructuring CostsSignificant one-
Page 113 and 114:
Property, Plant and Equipment and I
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Tobacco net revenue£ million 2010
Page 117 and 118:
3 Restructuring Costs£ million 201
Page 119 and 120:
Factors affecting the tax charge fo
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9 Intangible Assets2010£ million G
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10 Property, Plant and Equipment201
Page 125 and 126:
13 Trade and Other Receivables2010
Page 127 and 128:
Sensitivity analysisIFRS 7 requires
Page 129 and 130:
At 30 September 2009Balance sheetam
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(iii) Currency analysis and effecti
Page 133 and 134:
(iv) Derivative financial instrumen
Page 135 and 136:
Matures in financial year ending in
Page 137 and 138:
The following tables are provided i
Page 139 and 140:
Matures in financial year ending in
Page 141 and 142:
(vi) Hedge of net investments in fo
Page 143 and 144:
18 Retirement Benefit SchemesThe Gr
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Assumptions regarding future mortal
Page 147 and 148:
21 Share SchemesThe Group recognise
Page 149 and 150:
Year from 1 October 2008 to 30 Sept
Page 151 and 152:
23 CommitmentsCapital commitments£
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27 Reconciliation of Cash Flow to M
Page 155 and 156:
Imperial Tobacco Group PLC Balance
Page 157 and 158:
(iii) Debtors: Amounts Falling Due
Page 159 and 160:
Principal SubsidiariesThe principal
Page 161 and 162:
Shareholder InformationRegistered O
Page 163 and 164:
IndexAAccounting Policies 103Acquis
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Annual report 2010 - Imperial Tobacco Group

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