Philip Morris International Inc · NYSE:PM
Philip Morris International — Q4 2023 Earnings Presentation
16 slides from Philip Morris International's earnings presentation, Feb 8, 2024
Slide 1: 2023 Fourth-Quarter and Full-Year Results
Championing a Smoke-Free World 2023 Fourth-Quarter and Full-Year Results February 8, 2024 Introduction • A glossary of terms, including the definition for smoke-free products(a) as well as adjustments, other calculations and reconciliations to the most directly comparable U.S. GAAP measures for non-
Slide 2: Forward-Looking and Cautionary Statements
Forward-Looking and Cautionary Statements • This presentation contains projections of future results and goals and other forward-looking statements, including statements regarding business plans, expectations and strategies. Achievement of future results is subject to risks, uncertainties and inaccu
Slide 3: Driving Sustainable & Profitable Transformation; Q4 2023 Strong Finish
Driving Sustainable & Profitable Transformation • Q4 key transformation milestones: ⎼ IQOS net revenues surpass Marlboro ⎼ ZYN the fastest growing U.S. smoke-free brand ⎼ 25 markets with smoke-free net revenues >50% ⎼ Over 40% gross profit generated by smoke-free products • Good progress in adoption
Slide 4: FY 2023: Excellent Net Revenue and EPS Growth
FY, 2023: Excellent Net Revenue and EPS Growth Net Revenues +20% (Organic variance vs. PY) +7.8% 2023 Swedish Match Net Revenue Growth Excl. Currency(a) Operating Income +3.7% (Organic variance vs. PY) Adj. Diluted EPS +11.0% (Currency neutral variance vs. PY) Adj. Diluted EPS $6.01 (a) Swedish Matc
Slide 5: Stepped-Up Organic OI Growth in H2
Stepped-Up Organic OI Growth in H2 Organic OI Growth (Change vs. PY) 13.0% 9.8% 5.4% 4.6% H1’23 2020 2021 2022 H2'23 (2.1)% 9 Source: PMI Financials or estimates Organic OI Growth Driven by Excellent Smoke-Free Accretion FY’23 Organic Variance vs. PY Total PMI Smoke-Free Combustibles Products(a) Net
Slide 6: Swedish Match: Outstanding Growth for PMI in First Year
Swedish Match: Outstanding Growth for PMI in First Year • +20%(a) 2023 top-line growth driven by ZYN • ROIC/WACC crossover expected well ahead of 5 year target • Continued remarkable growth of U.S. ZYN • ZYN launched or re-launched in 10 markets • Robust cigars performance with net revenue and profi
Slide 7: Further Acceleration of IQOS User Growth
Further Acceleration of IQOS User Growth +3.7m Total IQOS Users(a) vs.Q4’22 (in millions) +3.2m 28.6 vs.Q4’21 27.2 27.4 25.8 24.9 23.7 23.7 22.7 21.7 Estimated users who have switched to IQOS 71% 72% 71% 71% 71% 72% 72% 72% 73% and stopped smoking(a) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 (a) See
Slide 8: Japan: Excellent ILUMA Momentum Continues
Japan: Excellent ILUMA Momentum Continues 9.9 Japan HTU Offtake Share(c) 9.6 9.3 Tokyo 34.1% 9.0 30.4% 8.7 8.4 8.2 8.0 Adj. IMS(a) (in billion units) HTU Adjusted SoM(b) 27.6% +3.7pp 26.6% 26.2% 26.3% Sendai 29.1% 32.1% 24.5% 23.6% +3.0pp 22.8% 22.9% Fukuoka 30.9% 27.1% +3.8pp Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 9: Combustibles: Strong Pricing and Category Share Growth
Combustibles: Strong Pricing and Category Share Growth Combustible Pricing Share of Cigarette Category(b) (% organic change vs. PY)(a) (Change vs. PY in pp) 2020 2021 0.2 8.9 0.1 2022 2023 5.0 (0.7) 3.7 2.7 (1.2) 2020 2021 2022 2023 (a) Pricing variance is based on adjusted net revenues (b) Excludes
Slide 10: Delivering On Mid-Term Growth Targets
Delivering On Mid-Term Growth Targets 2021-23 2024-26 CAGR CAGR Targets Shipment Volume(a) ~1.6% Positive (Variance) Net Revenues ~7.5% 6-8% (Organic variance) Operating Income ~7.3% 8-10% (Organic variance) Adj. Diluted EPS ~12.1% 9-11%(b) (Currency-neutral variance) (a) Reflects total shipment vol
Slide 11: Expect Strong Start to the Year in Q1
Expect Strong Start to the Year in Q1 • Expect good double-digit HTU adj. IMS growth over 2024 quarters • Strong Q1 expected: ⎼ HTU shipments of 31-32bn ⎼ U.S. ZYN continued strong volume growth ⎼ Organic net revenue and OI growth broadly consistent with FY outlook ⎼ Strong currency-neutral adjusted
Slide 12: 2024 Priorities: Championing a Smoke-Free World
2024 Priorities: Championing a Smoke-Free World • Continuous innovation to drive sustainable IQOS growth • Continue to grow ZYN strongly in the U.S. and expand to international markets • First U.S. city tests of IQOS 3 in preparation for ultimate launch of ILUMA, with ability to leverage global supp
Slide 13: Questions & Answers
Championing a Smoke-Free World 2023 Fourth-Quarter and Full-Year Results Questions & Answers Have you downloaded the PMI Investor Relations App? iOS Download Android Download The free IR App is available to download at the Apple App Store for iOS devices and at Google Play for Android mobile devices
Slide 14: Appendix and Reconciliation of Non-GAAP Measures
Championing a Smoke-Free World Appendix and Reconciliation of Non-GAAP Measures 27 Approximate Impact of Currency on 2023 EPS ($/share) FY 2023 Japanese Yen $(0.21) Russian Ruble $(0.21) Argentine Peso $(0.19) Egyptian Pound $(0.11) Swiss Franc $(0.09) Euro $0.07 Others $0.11 Total PMI Currency Impa
Slide 15: 2024: EPS Guidance
2024: EPS Guidance Full-Year 2024 ($/share) Forecast 2023 Growth Reported Diluted EPS $5.90 – $6.02 $5.02 Adjustments: - Asset impairment and exit costs - 0.06 - Termination of distribution arrangement in the Middle East - 0.04 - Income tax impact associated with Swedish Match AB financing - (0.11)
Slide 16: Reconciliation of Non-GAAP Measures
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Reported Operating Income to Adjusted Operating Income and RBH Impact ($ in millions) / (Unaudited) Year Year Year Six Months Quarter Six Months Year Six Months Quarter Six Months Year Ended Dec E
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