Philip Morris International Inc · NYSE:PM
Philip Morris International — Philip Morris ČR a.s. — Shareholder Meeting (April 2017)
20 slides from Philip Morris International's shareholder meeting presentation, Apr 28, 2017
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 28, 2017 Árpád Könye Chairman of the Board of Directors
Slide 2: Total Cigarette Market - Czech Republic
Total Cigarette Market Czech Republic Total reported cigarette market up by 0.1% reflecting mainly • favorable economic environment • favorable net estimated inventory movements on the market partially offset by • decline in smoking incidence Source: Philip Morris ČR a.s. internal estimates © 2017 P
Slide 3: Price Increases 2014 – 2016 (CZK/pack)
Price Increases 2014 – 2016 (CZK/pack) Czech Republic Dec'14 Dec'15 Dec'16 Premium 91 96 100 Medium 79 84 89 Low 74 79 84 SuperLow 72 77 82 • Excise tax increase December 1, 2014 Note: Retail prices in CZK/pack of 20 cigarettes • Excise tax increase January 1, 2016 Source: Price Gazettes of the Mini
Slide 4: PMCR Cigarette Market Share and Shipments
PMCR Cigarette Market Share and Shipments Czech Republic Market share increase 46.1% (0.2pp) • mainly reflecting the strong performance of Marlboro, L&M and Philip Morris Domestic cigarette shipments up 3.6% • higher cigarette market share Source: Nielsen Company (Europe) Sárl., Philip Morris ČR a.s
Slide 5: Fine Cut Tobacco
Fine Cut Tobacco Czech Republic Fine Cut Tobacco market (bilion units equivalent) -1.0% 2.5 2.4 2015 2016 Note: Fine Cut Tobacco refers to tobacco products such as tobacco for make-your-own cigarettes (0.73 g is equivalent to 1 cigarette) and volume tobacco for make-your-own cigarettes (0.60 g is eq
Slide 6: Combined shipments Cigarettes & Other Tobacco Products
Combined shipments Cigarettes & Other Tobacco Products Czech Republic Domestic shipments up by 3.9% mainly driven by: • higher total cigarette market share • higher fine cut market share Note: Fine Cut Tobacco refers to tobacco products such as tobacco for make-your-own cigarettes (0.73 g is equival
Slide 7: Total Cigarette Market - Slovakia
Total Cigarette Market Slovakia Total cigarette market down by 0.3% reflecting mainly • unfavorable net estimated inventory movements on the market Source: Philip Morris Slovakia s.r.o. internal estimates © 2017 Philip Morris ČR a.s. 7
Slide 8: Price Increases 2014 – 2016 (EUR/pack)
Price Increases 2014 – 2016 (EUR/pack) Slovakia Dec '14 Dec '15 Dec '16 Premium 3.50 3.50 3.70 Medium 3.10 3.10 3.30 • Price increases in Q3 2014 • Price increases implemented by Philip Morris Slovakia s.r.o Super Low in Q1 2016 in conjunction with 2.90 2.90 3.10 the unit count change from 19s to 20
Slide 9: Cigarette Market Share and Shipments - Slovakia
Cigarette Market Share and Shipments Slovakia Market share increase to 57.1% (+0.1pp) • strong performance of L&M and Philip Morris • partially offset by share declines of local brands Domestic cigarette shipments up 0.7% • higher cigarette market share Source: Nielsen Company (Europe) Sárl., Philip
Slide 10: Net Revenues
Net Revenues Consolidated Financial Results (CZK million) Consolidated net revenues up by 5.4% or by 5.6% excluding currency, mainly driven by: • favorable volume / mix in the Czech Republic and Slovakia, as well as favorable pricing in the Czech Republic. Source: Philip Morris ČR a.s. financials ©
Slide 11: Operating Income
Operating Income Consolidated Financial Results (CZK million) Consolidated profit from operations increased by 8.4% or by 8.0% excluding currency, primarily reflecting: • favorable volume / mix in the Czech Republic and Slovakia • favorable pricing in the Czech Republic partially offset by: • lower
Slide 12: Fiscal Outlook - Czech Republic
Fiscal Outlook Czech Republic • Adopted three-year excise tax roadmap for 2016 - 2018 meeting minimum EU requirements • Excise tax increase as of Jan’16, Jan’17, Jan’18, ad valorem remains at 27%, specific and MET increase • Anti-forestalling regulation introduced for cigarettes in Dec’14 remains fo
Slide 13: Transposition of Tobacco Products Directive into Czech law
Transposition of Tobacco Products Directive into Czech law Transposed by Act no. 180/2016 Coll. amending Act no. 110/1997 Coll. on Foodstuffs and Tobacco Products as amended Entry into effect Sell-by-date Sell-by-date Act published in + the Manufacturing Cigarettes Cigarillos, cigars, Coll. of Laws
Slide 14: New Act on Health Protection Against Harmful Effects of Additive Substances
New Act on the Health Protection Against Harmful Effects of Additive Substances - Czech Republic Entry into New law includes: effect • Full HORECA (restaurants + bars) smoking ban (outside terraces exempted) 31 May • E-cigarettes vaping permitted in HORECA 2017 • Sales of tobacco products through ve
Slide 15: Fiscal Outlook - Slovakia
Fiscal Outlook Slovakia Minimum Excise Tax for Cigarettes (EUR/’000) EU MET requirement of 90 EUR • 3 year fiscal plan for 2017-2019 adopted in fall 2016 – ET rates increases in February 1, 2017 and February 1, 2019 • new excise category for smoke-less tobacco products as of May 1, 2017 • anti-fores
Slide 16: Transposition of Tobacco Products Directive into Slovak law
Transposition of Tobacco Products Directive into Slovak law Transposed by Act no. 89/2016 Coll. on the manufacturing, labelling and sale of tobacco products and tobacco-related products and on the amendment of related acts Entry into effect Sell-by-date Sell-by-date Act published in the + Coll. of L
Slide 17: Assets & Liabilities
Assets & Liabilities Consolidated Financial Results (CZK million) YTD Dec YTD Dec Assets Incr./(Decr.) 2016 2015 Cash & Equivalents 8,164 7,470 694 Inventories 343 423 (80) Receivables 435 399 36 Other Non-Financial Assets 2,220 2,847 (627) Excise tax on inventory Prepaid Income Tax 14 - 14 Non-Curr
Slide 18: Cash and Cash Equivalents
Cash and Cash Equivalents Consolidated Financial Results (CZK million) Source: Philip Morris ČR a.s. financials © 2017 Philip Morris ČR a.s. 18
Slide 19: Dividend proposal
Dividend proposal Philip Morris ČR a.s. 2012 2013 2014 2015 2016 (CZK / share) Earnings Current Year 885 819 825 925 1,007 Retained Earnings Prior Year 15 1 55 -5 -7 Dividend Paid / Proposed 900 820 880 920 1,000 Reserve Fund Release 60 Total Payout Proposed 900 880 880 920 1,000 © 2017 Philip Morri
Slide 20: Thank you
Thank you © 2017 Philip Morris ČR a.s. 20
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