Philip Morris International Inc · NYSE:PM
Philip Morris International — Philip Morris ČR a.s. — Shareholder Meeting (April 2012)
16 slides from Philip Morris International's shareholder meeting presentation, Apr 27, 2012
Slide 1: Annual General Meeting of Shareholders of Philip Morris ČR a.s.
Annual General Meeting of Shareholders of Philip Morris ČR a.s. Kutná Hora April 27, 2012 András Tövisi Chairman of the Board of Directors
Slide 2: In 2012 we celebrate two anniversaries…
In 2012 we celebrate two anniversaries… 200 years of tobacco products manufacture in Kutná Hora 20 years of Philip Morris International Inc. presence in the Czech Republic © 2012 Philip Morris ČR a.s. 2
Slide 3: Key Highlights of 20 Years with PMI
Key Highlights of 20 Years with PMI Earnings per Share +252% CZK 926 CSK 263 1992 2011 Source: Philip Morris ČR a.s. financials © 2012 Philip Morris ČR a.s. 3
Slide 4: Cigarette Volume and Market Share
Cigarette Volume and Market Share Czech Republic Total Market Shipments (billion units) (billion units) -7.5% 21.7 21.1 21.1 10.1 9.3 2009 2010 2011 2010 2011 Market Share -2.9pp No. 1 54.5% 51.6% 2010 2011 Shipments and market share impacted by: • Losses of local heritage brands • Partially offset
Slide 5: Tax & Price Increases
Tax & Price Increases Czech Republic Dec '09 Dec '10 Dec '11 Premium 82 82 84 • VAT increase January 1, 2010 Medium 66 69 72 • Excise tax increase February 1, 2010 Low 60 63 65 Note: Retail prices in CZK/pack of 20 cigarettes Source: Price Gazettes of the Ministry of Finance © 2012 Philip Morris ČR
Slide 6: Cigarette Volume and Market Share
Cigarette Volume and Market Share Slovak Republic Total Market Shipments (billion units) (billion units) -2.8% 7.7 7.5 7.4 3.8 3.7 2009 2010 2011 2010 2011 Market Share -0.6pp No. 1 50.6% 50.0% 2010 2011 Market share impacted by: • Down-trading to competitive low-price brands • Losses of local herit
Slide 7: Tax & Price Increases
Tax & Price Increases Slovak Republic Dec '10 Dec '11 Premium 3.00 3.20 • VAT increase January 1, 2011 Medium 2.60 2.60 • Excise tax increase Super Low 2.30 2.50 February 1, 2011 2.25 2.40 Note: Retail prices in EUR/pack of 19 cigarettes Source: Philip Morris Slovakia s.r.o. price lists © 2012 Phili
Slide 8: Other Tobacco Products
Other Tobacco Products Czech Republic Fine Cut Tobacco Total Market - Czech Republic (billion cigarette equivalents) +22% 1.3 1.1 2010 2011 Note: Fine Cut Tobacco refers to tobacco products such as make-your-own cigarettes (0.75 g = 1 cigarette) Source: Philip Morris ČR a.s. internal estimates © 201
Slide 9: Export Shipments
Export Shipments Shipments (billion units) +12.8% 15.7 13.9 2010 2011 • Cigarettes up 1.3 billion (+9.7%) • Other Tobacco Products up 0.5 billion (+96.1%) • 2011 operations investments in Kutná Hora: CZK 0.4 billion Note: Shipments include other tobacco products such as cigarillos and make-your-own
Slide 10: Business Overview
Business Overview Consolidated Financial Results Revenues Profit from Operations Net of Excise Tax & VAT (CZK billion) (CZK billion) +6.6% +6.8% 12.2 3.1 11.4 2.9 2010 2011 2010 2011 Source: Philip Morris ČR a.s. financials © 2012 Philip Morris ČR a.s. 10
Slide 11: Revenues, Net of Excise Tax and VAT
Revenues, Net of Excise Tax and VAT Consolidated Financial Results (CZK billion) 0.9 (0.1) 12.2 0.5 (0.4) 11.4 (0.2) (0.0) 2010 Currency Price Volume / Mix Slovakia Exports Income from 2011 Services Czech Republic Excluding the impact of currency: increase of CZK 0.9 billion (+8.2%) driven primarily
Slide 12: Profit from Operations
Profit from Operations Consolidated Financial Results (CZK billion) 0.5 (0.5) 0.2 (0.0) 3.1 2.9 (0.0) (0.0) 2010 Currency Price Volume / Mix Slovakia Exports Costs / 2011 Czech Republic Services Excluding the impact of currency: increase of CZK 0.2 billion (+7.4%) driven by higher exports to other P
Slide 13: Cash and Cash Equivalents
Cash and Cash Equivalents Consolidated Financial Results (CZK billion) 3.2 (0.6) (3.5) (1.1) Prior years accumulated retained earnings payout 7.1 (2.4) 2010 net income payout (0.4) 0.1 0.1 5.9 2010 Profit before Taxes Dividends Change in Change in Other 2011 tax Working Working Capital (CR) Capital
Slide 14: Fiscal Environment
Fiscal Environment Minimum Excise Tax Development Min. eq. €90 / ’000 cig. (EU minimum) Czech Republic (CZK / 000’s) 2,100 2,100 2,010 2,010 1,920 2009 2010 2011 2012 2013 2014 90.0 90.0 Slovak Republic 88.5 (EUR / 000’s) 85.0 81.3 81.3 2009 2010 2011 2012 2013 2014 Source: Act no. 95/2011 Coll., Co
Slide 15: 2012 Update
2012 Update Czech Republic Slovak Republic Dec '11 2012 Registered RSP's Dec '11 2012 Premium 84 86 Premium 3.20 3.30 Medium 72 74 Medium 2.60 2.70 Super Low 2.50 2.60 Low 65 68 2.40 2.50 Note: Retail prices in CZK/pack of 20 cigarettes for Czech Republic and in EUR/pack of 19 cigarettes for Slovak
Slide 16: Dividend Proposal
Dividend Proposal (CZK / share) 2009 2010 2011 Accumulated Retained 0 376 0 Earnings Net Income 780 884 920 Dividend Paid / Proposed 780 1,260 920 Source: Philip Morris ČR a.s. financials © 2012 Philip Morris ČR a.s. 16
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