Philip Morris International Inc · NYSE:PM
Philip Morris International — Morgan Stanley Global Consumer & Retail Conference 2009
91 slides from Philip Morris International's conference presentation, Nov 19, 2009
Slide 1: Morgan Stanley Global Consumer & Retail Conference
Louis C. Camilleri Chairman and Chief Executive Officer Morgan Stanley Global Consumer & Retail Conference New York, 19 November 2009 Exhibit 99.2
Slide 2: Forward-Looking, Cautionary Statements and Use of Non-GAAP Measures
2 Forward-Looking, Cautionary Statements and Use of Non-GAAP Measures This presentation and related discussion contain statements that, to the extent they do not relate strictly to historical or current facts, constitute “forward-looking statements” within the meaning of the Private Securities Litig
Slide 3: Agenda
3 Agenda Performance against our growth targets Why we believe these growth targets remain realistic Key strategies and growth opportunities, and the strong cash flow that underpins our ability to enhance shareholder returns
Slide 4: Currency Neutral Mid to Long-Term Annual Growth Targets
4 Cigarette Volume (a) 1 – 2% Net Revenues (b)(c) 4 – 6% Operating Companies Income (c) 6 – 8% EPS (d) 10 – 12% Currency Neutral Mid to Long-Term Annual Growth Targets (a) Organic volume growth (that is, excluding acquisitions) target of 1% (b) Excluding excise taxes (c) Excluding currency and acqui
Slide 5: 2008 PMI Results: Organic Cigarette Volume
5 2008 PMI Results Mid to Long-Term Target Full Year Q4 Q3 Q2 Q1 (% growth) 1.0 0.6 3.2 0.3 (0.2) Organic Cigarette Volume (a) (a) Excluding acquisitions Source: PMI Financials
Slide 6: 2008 PMI Results vs Mid to Long-Term Target
6 2008 PMI Results Mid to Long-Term Target 12.5 9.0 10.0 23.7 Adjusted Diluted EPS (d)(e) 5.5 7.1 9.2 19.4 Adjusted OCI (c) 5.6 7.2 4.0 5.5 Net Revenues (b)(c) Full Year Q4 Q3 Q2 Q1 (% growth) 10-12 6-8 4-6 12.9 9.8 5.6 1.0 0.6 3.2 0.3 (0.2) Organic Cigarette Volume (a) (a) Excluding acquisitions (b
Slide 7: 2009 PMI Results: Organic Cigarette Volume
7 2009 PMI Results Mid to Long-Term Target YTD Sept Q3 Q2 Q1 (% growth) (a) Excluding acquisitions Source: PMI Financials (2.1) (4.0) (1.1) (1.1) Organic Cigarette Volume (a)
Slide 8: Pricing Variance
8 Pricing Variance ($ million) Source: PMI Financials 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 9: 2009 PMI Results vs Mid to Long-Term Target
9 2009 PMI Results Mid to Long-Term Target 18.3 17.2 11.3 Adjusted Diluted EPS (d) 10.6 9.5 5.3 Adjusted OCI (c) YTD Sept Q3 Q2 Q1 (% growth) (a) Excluding acquisitions (b) Excluding excise taxes (c) Excluding currency and acquisitions (d) Excluding currency (e) Please see relevant quarterly reconci
Slide 10: PMI Adjusted OCI Margins
10 PMI Adjusted OCI Margins (a) 7.2 32.7 25.5 LA & Canada 2.4 37.3 34.9 Asia 2.0 44.8 42.8 EEMA 0.8pp 51.7% 50.9% EU Variance YTD Sept 2009 YTD Sept 2008 (%) 1.6 44.2 42.6 PMI (a) Excluding currency. Please see relevant reconciliations to most comparable GAAP measures posted on our web site Source:
Slide 11: 2009 Reported Diluted EPS Guidance
11 2009 Reported Diluted EPS Guidance 2009 reported diluted EPS guidance: $3.20 - $3.25 Based on October results and current business and currency outlook for the remainder of the year, we expect reported diluted EPS for 2009 to be at the upper end of this range Source: PMI Financials
Slide 12: Future Prospects
12 Future Prospects Beyond 2009, we believe we can continue to deliver against our mid to long-term annual growth targets Difficult to predict shape and timing of employment- led economic recovery Confident we can meet EPS and free cash flow targets, which we believe are the two most important metri
Slide 13: PMI Organic Volume Drivers
13 PMI Organic Volume Drivers Total consumption trends Geographic mix PMI market share growth Other factors
Slide 14: Total Cigarette Industry Volume
14 Total Cigarette Industry Volume (a) (a) Excluding China, USA and duty-free Note: Organization for Economic Co-operation and Development (OECD) Source: PMI estimates (billion units) 0.2% CAGR (2.5)% CAGR 1.9% CAGR Non-OECD OECD 1,170 2,172 3,342 1,297 2,017 3,314 2004 2008
Slide 15: Total Cigarette Industry Volume Forecast
15 Total Cigarette Industry Volume (a) Non-OECD OECD (2.4)% Var. (3.4)% Var. (1.9)% Var. Forecast (a) Excluding China, USA and duty-free Note: Organization for Economic Co-operation and Development (OECD) Source: PMI estimates 0.2% CAGR (2.5)% CAGR 1.9% CAGR (billion units) 1,170 1,130 2,172 2,131 3
Slide 16: Key Industry Volume Drivers
16 Key Industry Volume Drivers Demographics Consumer purchasing power
Slide 17: Key Industry Volume Drivers
17 Key Industry Volume Drivers Demographics Consumer purchasing power Excise taxation
Slide 18: Key Industry Volume Drivers
18 Key Industry Volume Drivers Demographics Consumer purchasing power Excise taxation Regulatory environment Social trends
Slide 19: Key Industry Volume Drivers
19 Key Industry Volume Drivers Demographics Consumer purchasing power Excise taxation Regulatory environment Social trends Expected industry volume trend post economic crisis: annual range of +/- 0.5% Source: PMI estimates
Slide 20: PMI Share Growth Targets
20 PMI Share Growth Targets To achieve 1% organic volume growth within this industry volume range, PMI needs to gain between 0.1 and 0.4 share points Organic share gain of 0.2 points in 2008 (with 0.2% industry volume growth) PMI should be able to do at least as well going forward benefiting from: G
Slide 21: PMI Regional Volume Mix
21 PMI Regional Volume Mix EU LA & Canada Asia EEMA 2004 Volumes: 762 billion units Source: PMI Financials EU EEMA Asia LA & Canada 2008 Volumes: 870 billion units 36% 35% 19% 10% 28% 35% 26% 11%
Slide 22: PMI Asia Region Volume Mix
22 PMI Asia Region Volume Mix Japan Other Asia Indonesia Source: PMI Financials Japan Indonesia Other Asia 2004 Volumes: 142 billion units 2008 Volumes: 224 billion units 26% 33% 41% 42% 52% 6%
Slide 23: PMI Market Share Growth
23 PMI Market Share Growth Avg. Annual Share Growth 2004-09 YTD 69.2 63.5 60.1 Mexico 73.3 66.3 65.1 Argentina 14.0 8.6 7.4 Korea 29.0 28.3 23.5 Indonesia 35.8 33.1 31.0 Ukraine 42.8 43.6 36.9 Turkey 25.3 22.2 N/A (a) Russia 15.9% 10.2% 6.4% Egypt YTD Sept 2009 2006 2004 1.8 1.6 1.3 1.1 1.0 1.2 1.0
Slide 24: PMI Market Share Development
24 PMI Market Share Development (a) OECD Non-OECD (a) YTD Sept 2009 data based on 94 key markets in which PMI operates Note: Organization for Economic Co-operation and Development (OECD) Source: PMI estimates (%) Sept 2009 Sept 2009 34.2 33.6 34.6 34.8 23.4 24.4 24.6 25.0 2007 2008 12mm 3mm 2007 200
Slide 25: PMI Net Revenue Growth
25 PMI Net Revenue Growth We believe 1% annual organic volume growth rate remains achievable in mid to long-term Prime focus is net revenue growth excluding currency and acquisitions of 4-6%, driven by: pricing product mix geographic mix - - - Note: Net revenues exclude excise taxes
Slide 26: PMI Pricing Variance by Region
26 PMI Pricing Variance by Region EU LA & Canada Asia EEMA EU LA & Canada Asia EEMA 2008: $1.2 billion 2009 YTD Sept: $1.5 billion Source: PMI Financials 26% 40% 20% 14% 31% 41% 17% 11%
Slide 27: Productivity and Cost Savings
27 Forecast Cumulative Gross Cost Savings (2008-10) Productivity and Cost Savings 450 250 1,550 850 ($ million) Manufacturing Productivity G&A + Other EU Program Total
Slide 28: Strategies for Growth
28 Strategies for Growth Reinforce our position in profitable consumer segments Drive growth of our leading brand portfolio through enhanced consumer understanding and innovation Expand geographically Effectively utilize our strong and growing cash flow to increase shareholder returns Pursue opportu
Slide 29: Strategies for Growth
29 Strategies for Growth Reinforce our position in profitable consumer segments Drive growth of our leading brand portfolio through enhanced consumer understanding and innovation Expand geographically Effectively utilize our strong and growing cash flow to increase shareholder returns Pursue opportu
Slide 30: Top International Brands (2008)
30 Top 15 International Brands (2008) Lark Parliament Chesterfield Bond Street Philip Morris L&M Marlboro Source: PMI data from Financials. Competitive data for BAT and JT derived from 2008 company reports and PMI estimates (billion) LD Dunhill Viceroy Camel Pall Mall Kent Mild Seven Winston PMI BAT
Slide 31: Brand Portfolio
31 Brand Portfolio Mid-Price Premium & Above Local Heritage International Low-Price
Slide 32: Enhanced Consumer Understanding and Innovation
Enhanced Consumer Understanding and Innovation Enhanced Consumer Understanding and Innovation
Slide 33: Marlboro Architecture
33 Marlboro Architecture “Flavor enjoyment” “Smooth taste and style” “Fresh taste sensations” Red Gold Fresh
Slide 34: Marlboro Red
Marlboro Red Marlboro Red Line Line
Slide 35: MEME CIGARETTE
MEME CIGARETTE
Slide 36: New Marlboro Red Pack Perception - France
36 New Marlboro Red Pack Perception - France 0 1 2 3 4 5 6 7 8 9 10 Beautiful In the spirit of the times High- end Modern Innovative Worth its price Proud to show : Significant difference at 95% confidence level : : New Pack (n=100) Old Pack (n=100) Source: PMI market research in France (POS study 2
Slide 37: Designed for Flavor
DESIGNED FOR FLAVOR a arbors a HEALTH WARNING TO BE PLACED HERE
Slide 38: Marlboro Red Perception - Romania
38 Marlboro Red Perception - Romania -40 10 60 110 160 210 2008 vs. 2007 LA - 2007 2008 Note: LA stands for Legal Age (min 18). An index of 100 is equal to the average score obtained across all brands for the item Source: Strategic Group Research Consulting, market research in Romania For people lik
Slide 39: Marlboro Gold Line
Marlboro Gold Line
Slide 40: Gold now
GOLD now. - style that fits
Slide 41: EXBUORE FRESH|
EXBUORE FRESH| 3 Cr Hoe RE UE COOL MENTHOPSTRIPE aie. x
Slide 42: New Black Menthol
bs NEW BL CK MENTHOL
Slide 43: Marlboro Innovation
Marlboro Marlboro Innovation Innovation
Slide 44: Marlboro Market Share – Italy
44 Marlboro Market Share – Italy Gold Touch 2008 2009 Source: PMI estimates (%) 22.6 22.1 21.9 22.7 23.1 1.4 Q3 Q4 Q1 Q2 Q3
Slide 45: Marlboro Market Share – Japan
45 Marlboro Market Share – Japan Black Menthol 2007 2008 2009 Source: Tobacco Institute of Japan (%) 0.8 10.1 10.2 10.6 1.4 Q3 Q3 Q3
Slide 46: Marlboro Market Share – Korea
46 Marlboro Market Share – Korea Filter / Flavor Plus 2005 2007 2009 2008 2006 Source: Korea Research Center (%) 3.0 3.4 4.1 4.8 6.0 Q3 Q3 Q3 Q3 Q3
Slide 47: Marlboro Smoker Share – EU Region
47 Marlboro Smoker Share – EU Region (pp) (Difference LA-24 vs. LA-64) Italy Belgium Greece Sweden Neth. Czech France UK Poland Spain Germany Note: LA stands for Legal Age (min 18). All data are 2009 preliminary, except Italy, Poland and Spain, which are 2008 data Source: PMI Market Research (Genera
Slide 48: Marlboro Smoker Share – Portugal
48 Marlboro Smoker Share – Portugal 9.7pp 7.9pp (%) Note: LA stands for Legal Age (min 18) Source: PMI Market Research (General Consumer Tracking Survey) 28.9 21.5 24.8 28.7 34.1 21.0 18.3 21.4 21.6 24.4 Feb-08 May-08 Oct-08 Feb-09 Sep-09 LA-24 LA-64
Slide 49: Marlboro Smoker Share – Other Regions
49 Marlboro Smoker Share – Other Regions 49 (Difference LA-24 vs. LA-64) Korea Japan Ukraine Mexico Turkey Romania Russia Egypt Indon. Arg. Note: LA stands for Legal Age (min 18). All data are 2009 preliminary, except Egypt, Romania, Russia, Saudi Arabia and Ukraine, which are 2008 data. Source: PMI
Slide 50: ==) iat
==) iat . — A = jug Se, a re
Slide 51: Parliament Share Variances
51 Parliament Share Variances (Q3, 2009 vs. Q3, 2007) (pp) Korea Turkey Kazakhstan Ukraine Russia Japan Source: Korea Research Center, A.C. Nielsen, Business Analytica and Tobacco Institute of Japan 2.3 2.2 1.0 0.9 0.4 (0.2) -1
Slide 52: 1mg Segment
1mg Segment
Slide 53: PMI 1mg Segment Shares
53 PMI 1mg Segment Shares (%) Q3-07 Q3-08 Q3-09 Q3-07 Q3-08 Q3-09 Q3-07 Q3-08 Q3-09 Source: Tobacco Institute of Japan, Korea Research Center and A.C. Nielsen 19.7 9.8 8.8 19.3 11.2 12.5 20.5 13.5 15.6 Japan Korea Saudi Arabia
Slide 54: L&M Old and New Line-up
54 L&M Old Line-up New Line-up
Slide 55: L&M Market Share Variances – EU Region
55 L&M Market Share Variances – EU Region (Q3, 2009 vs. Q3, 2007) (pp) Germany Source: A.C. Nielsen and PMI estimates Czech Neth. Sweden Spain Poland Belgium France 3.0 2.6 2.3 2.3 2.1 1.4 1.0 0.4
Slide 56: Te nate, wi rete race) = ae A =
Te nate, wi rete race) = ae A = 2 Rauchen kann tédlich sein. Der Rauch einer Zigarette enthalt: LM Red Label 10 mg Teer, 0,8 mg Nikotin und 10 mg Kohlenmonoxid, L&M Blue Label 6 mg T, 0,5 mg N und 7 mg CO. (Durchschnittswerte nach ISO)
Slide 57: Palenie powaznie szkodzi Tobie
Palenie powaznie szkodzi Tobie i osobom w Twoim otoczeniu
Slide 58: Super-Slims Segment – Poland
58 Super-Slims Segment – Poland (%) (%) Q3-07 Q3-08 Q3-09 Source: A.C. Nielsen Segment Share of Market PMI Share of Segment Q3-07 Q3-08 Q3-09 6.5 8.2 10.3 25.7 35.8 40.3
Slide 59: Strategies for Growth
59 Strategies for Growth Reinforce our position in profitable consumer segments Drive growth of our leading brand portfolio through enhanced consumer understanding and innovation Expand geographically Effectively utilize our strong and growing cash flow to increase shareholder returns Pursue opportu
Slide 60: Organic Market Entry and Expansion
60 Organic Market Entry and Expansion (%) PMI Market Share Algeria Bulgaria L&M Marlboro Source: A.C. Nielsen and PMI estimates Other Marlboro Muratti 7.7 9.0 11.5 3.3 5.3 5.9 3.5 5.7 10.1 1.4 3.1 3.3 5.0 5.4 11.2 14.7 21.6 6.6 11.7 14.4 Q3-07 Q3-08 Q3-09 Q3-07 Q3-08 Q3-09
Slide 61: Acquisitions – Indonesia
61 Acquisitions – Indonesia PMI Gudang Garam Djarum Market Shares (%) Source: PMI estimates based on A.C. Nielsen 26.4 29.0 27.4 21.2 19.6 21.2 2005 2006 2007 2008 2009 Sept YTD
Slide 62: Acquisitions - Canada
62 Acquisitions - Canada Rothmans Inc. PMI purchased 60% not owned for $1.9 billion Market size: 28.6 billion in 2008 1.6% growth YTD Sept PMI market share: 33.4% in 2008 0.5 pp share growth YTD Sept Source: PMI estimates
Slide 63: Competitive Landscape (2008)
63 Competitive Landscape (2008) (a) PMI BAT JT IMT (b) Other PMI BAT JT Other Market Shares excl. USA and duty-free Market Shares excl. China, USA and duty-free (a) Volumes are on a calendar basis, except for IMT, which reports on a fiscal year ending September. (b) Impact of 3.8 months of Altadis v
Slide 64: Geographic Expansion
64 Geographic Expansion India: launch of locally manufactured Marlboro through a PMI controlled joint-venture South Africa: acquisition of business that has close to 30% of tobacco market
Slide 65: China
65 China Nearly 40% of the world cigarette market excluding the USA and duty-free PMI has license agreement for production and sale of Marlboro and joint-venture for international markets China National Tobacco Corporation the key partner Marlboro sales remain modest but are increasing International
Slide 66: Strategies for Growth
66 Strategies for Growth Reinforce our position in profitable consumer segments Drive growth of our leading brand portfolio through enhanced consumer understanding and innovation Expand geographically Effectively utilize our strong and growing cash flow to increase shareholder returns Pursue opportu
Slide 67: Cumulative Operating Cash Flow
67 Cumulative Operating Cash Flow (2008-2010) Source: PMI Financials ($ billion) 2008 2009 2010 6.6 7.3 7.8 21.7 March 2008
Slide 68: Cumulative Operating Cash Flow
68 Cumulative Operating Cash Flow 2008 2009 2010 YTD Sept (2008-2010) Source: PMI Financials ($ billion) 6.6 7.9 7.3 6.4 7.8 21.7 14.3 March 2008 Actual
Slide 69: Free Cash Flow as a % of Net Revenues – Peer Group
69 Free Cash Flow as a % of Net Revenues – Peer Group 2008 FY – Sept 30, 2009 YTD Note: Free Cash Flow as a % of Net Revenue, excluding excise taxes, is defined as total Free Cash Flow during the 2008 – Sept 30, 2009 YTD period ($12,772 million) over the total revenue during the same period ($44,023
Slide 70: Free Cash Flow as a % of Net Revenues – Tobacco
70 Free Cash Flow as a % of Net Revenues – Tobacco 2008 FY – Sept 30, 2009 YTD Note: Free Cash Flow as a % of Net Revenue, excluding excise taxes, is defined as total Free Cash Flow during the 2008 – Sept 30, 2009 YTD period ($12,772 million) over the total revenue during the same period ($44,023 mi
Slide 71: Working Capital
71 Working Capital Average quarterly working capital in 2008: $ billion Receivables 2.9 Inventories 9.1 Other 0.3 Payables (7.5) Total 4.8 - - - - - Source: PMI Financials
Slide 72: Working Capital – Benchmarking
72 Working Capital – Benchmarking Objective was to determine areas where improvements could be made to generate additional cash Comparisons made with other consumer products companies and our key competitors
Slide 73: Working Capital – Benchmarking
73 Working Capital – Benchmarking Opportunities identified, particularly inventories Comprehensive program initiated Expect to generate $750 million to $1 billion in incremental cash flow over period 2010-2012 Objective was to determine areas where improvements could be made to generate additional c
Slide 74: Working Capital – Benchmarking
74 Working Capital – Benchmarking Confident our free cash flow growth rate will exceed our net earnings growth rate Objective was to determine areas where improvements could be made to generate additional cash Comparisons made with other consumer products companies and our key competitors Opportunit
Slide 75: Available Funds: Jan 2008 – Sept 2009
75 Available Funds: Jan 2008 – Sept 2009 Operating Cash Flow Incremental Financing + $14.3 billion $4.8 billion (a) Total Funds: $19.1 billion (a) Net of Q1, 2008, special dividend paid by PMI to Altria Group, Inc. of $3.0 billion Source: PMI Financials
Slide 76: Use of Funds: Jan 2008 – Sept 2009
76 Use of Funds: Jan 2008 – Sept 2009 Operating Cash Flow Incremental Financing Capital Expenditures Acquisitions + $14.3 billion $4.8 billion (a) Total Funds: $19.1 billion $1.6 billion (8%) $2.6 billion (14%) (a) Net of Q1, 2008, special dividend paid by PMI to Altria Group, Inc. of $3.0 billion S
Slide 77: Use of Funds: Jan 2008 – Sept 2009
77 Use of Funds: Jan 2008 – Sept 2009 Operating Cash Flow Incremental Financing Capital Expenditures Acquisitions Dividends Share Repurchases + $14.3 billion Total Funds: $19.1 billion $1.6 billion (8%) $2.6 billion (14%) $5.3 billion (28%) $9.6 billion (50%) $4.8 billion (a) (a) Net of Q1, 2008, sp
Slide 78: Dividends
78 Dividends March 2008, established at $1.84 per share on annualized basis Increased by 17.4% in August 2008 and 7.4% in September 2009 Current level of $2.32 per share on an annualized basis equates to a yield of 4.6% Source: PMI Financials
Slide 79: Dividend Yield
79 Dividend Yield Note: Dividend yield represents the annualized dividend at Mar 28, 2008, and Nov 13, 2009, over the closing share price on those dates, respectively Source: Centerview Partners based on company filings and FactSet March 28, 2008 November 13, 2009 1.9% 2.7% 2.9% 2.9% 2.9% 3.1% 3.2%
Slide 80: Share Repurchases
80 Share Repurchases $13 billion two-year program has been maintained throughout the economic and financial crisis $9.6 billion used to purchase 209.6 million shares at an average price of $45.81 per share $3.4 billion remaining in current program, as of September 30, 2009 Source: PMI Financials
Slide 81: Net Debt to EBITDA – Peer Group
81 Net Debt to EBITDA – Peer Group Note: Not Meaningful (NM). Please see relevant reconciliations to most comparable GAAP measures posted on our website or at the end of this presentation Source: Centerview Partners based on company filings September 30, 2009 NM NM NM 0.2x 0.5x 0.9x 1.0x 1.1x 1.2x 1
Slide 82: Capital Structure
82 Capital Structure Goal is to maintain current credit ratings and flexibility to make acquisitions Intention is to maintain our leverage within the constraints of these credit ratings
Slide 83: Shareholder Returns
83 Shareholder Returns This year so far, $7.4 billion returned to shareholders through dividends and share repurchases Since March 2008 spin-off, $14.9 billion returned to shareholders, representing more than 15% of our current market capitalization Source: PMI Financials
Slide 84: Total Shareholder Return – Weighted Average Since Spinoff
84 Total Shareholder Return – Weighted Average Since Spinoff (March 28, 2008 – November 13, 2009) Note: Peer groups represent the market weighted average return of the group. Total shareholder return and exchange rates are for period beginning March 28, 2008 and ending November 13, 2009. PMI include
Slide 85: Total Shareholder Return – Peer Group (USD) Since Spinoff
85 Total Shareholder Return – Peer Group (USD) Since Spinoff (March 28, 2008 – November 13, 2009) Note: Exchange rates are as of March 28, 2008 and November 13, 2009. PMI includes pro forma $0.46 per share dividend paid in April 2008 Source: Centerview Partners based on FactSet Vodafone Imperial Tob
Slide 86: Conclusions
86 Conclusions Key objective is to continue to provide superior returns to our shareholders Business fundamentals in very good shape Expect to consistently meet or exceed financial mid to long-term growth targets Organic volume growth should resume following employment-led economic recovery Tremendo
Slide 87: Philip Morris International
ey PHILIP MORRIS INTERNATIONAL KN
Slide 88: Reconciliation: Reported Net Revenues excluding Excise Taxes, Currency and Acquisitions
88 Reported Net Revenues Less Excise Taxes Reported Net Revenues excluding Excise Taxes Less Currency Reported Net Revenues excluding Excise Taxes & Currency Less Acquisi- tions Reported Net Revenues excluding Excise Taxes, Currency & Acquisitions Reported Net Revenues Less Excise Taxes Reported Net
Slide 89: Reconciliation: Adjusted Operating Companies Income
89 Reported Operating Companies Income Less Asset Impairment & Exit Costs / Others Adjusted Operating Companies Income Less Currency Adjusted Operating Companies Income excluding Currency Less Acquisi- tions Adjusted Operating Companies Income excluding Currency & Acqusitions Reported Operating Comp
Slide 90: Reconciliation: Diluted Earnings Per Share
90 Reported (1)(3) Less Asset Impairment & Exit Costs / Others Adjusted Less Currency Adjusted excluding Currency Reported (1)(3) Less Asset Impairment & Exit Costs / Others Adjusted Pro-Forma (2) Adjustments Adjusted Pro-Forma Adjusted Adjusted excluding Currency For the Quarter ended March 31, 0.7
Slide 91: Calculation of Net Debt to EBITDA Ratio
91 March 31, September 30, 2008 2009 April~December January~March 12 months October~December January~September 12 months 2007 2008 rolling 2008 2009 rolling Earnings before income tax 7,033 $ 2,449 $ 9,482 $ 2,120 $ 7,027 $ 9,147 $ Interest expense, net - 75 75 106 572 678 Amortization & Depreciatio
Philip Morris International — Morgan Stanley Global Consumer & Retail Conference 2009 on 6ix