Philip Morris International Inc · NYSE:PM
Philip Morris International — Philip Morris ČR a.s. — Shareholder Meeting (April 2013)
18 slides from Philip Morris International's shareholder meeting presentation, Apr 26, 2013
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 26, 2013 András Tövisi Chairman of the Board of Directors
Slide 2: 21st Century Manufacturing Plant in the Historic Town of Kutná Hora
21st Century Manufacturing Plant in the Historic Town of Kutná Hora © 2013 Philip Morris ČR a.s. 2
Slide 3: Cigarette Market Czech Republic
Cigarette Market Czech Republic Total Cigarette Market (billion units) -2.8% 21.1 20.5 2011 2012 In 2012, the total cigarette market declined by an estimated 2.8% versus the prior year to 20.5 billion units, mainly reflecting: • the impact of price increases in 2011; • excise tax driven price increa
Slide 4: Price Increases Czech Republic
Price Increases Czech Republic Dec'10 Dec'11 Dec'12 Premium 82 84 86 Segment Medium 69 72 74 Segment Low 63 65 68 Segment • Excise tax increase as of January 1, 2012 Note: Retail prices in CZK/pack of 20 cigarettes Source: Price Gazette of the Ministry of Finance © 2013 Philip Morris ČR a.s. 4
Slide 5: Market Share and Shipments Czech Republic
Market Share and Shipments Czech Republic Shipments Market share (billion cigarette equivalent units) -1.2pp -7.5%* 51.9% 50.7% 9.3 8.6 2011 2012 2011 2012 Market share decline (-1.2pp) Domestic shipments down • primarily from low-priced local (-7.5%) reflecting lower total brands; market and lower
Slide 6: Other Tobacco Products Czech Republic
Other Tobacco Products Czech Republic Fine Cut Total Market (billion cigarette equivalent units) +21.5% 1.8 1.5 2011 2012 Note: Fine cut refers to tobacco products such as make-your-own cigarettes (0.73 g is equivalent to 1 cigarette) and make-your-own volume cigarettes (0.60 g is equivalent to 1 ci
Slide 7: Cigarette Market Slovakia
Cigarette Market Slovakia Total Cigarette Market (billion units) -2.4% 7.4 7.2 2011 2012 In 2012, the total cigarette market in Slovakia was down by an estimated 2.4% to 7.2 billion units versus the prior year, mainly due to the impact of excise tax increases effective as of February 1, 2012 and Oct
Slide 8: Price Increases Slovakia
Price Increases Slovakia Dec'10 Dec'11 Feb'12 Dec'12 Premium 3.00 3.20 3.30 3.40 Segment Medium 2.60 2.60 2.70 2.80 Segment Low 2.30 2.50 2.60 2.70 Segment 2.25 2.40 2.50 2.60 2.20 2.30 2.50 2.60 • VAT increase January 1, 2011 / excise tax increase February 1, 2011 • Excise tax increase February 1,
Slide 9: Market Share and Shipments Slovakia
Market Share and Shipments Slovakia Market share Shipments (billion cigarette equivalent units) +0.9pp -1.2%* 50.0% 50.9% 3.70 3.65 2011 2012 2011 2012 Market share increase (+0.9pp) Domestic shipments down • strong performance of L&M and (-1.2%) reflecting lower total Petra; market, partially offse
Slide 10: Export Shipments
Export Shipments Export Shipments (billion cigarette equivalent units) +23.7%* 19.4 15.7 2011 2012 Export shipments increased by 23.7% to 19.4 billion cigarette equivalent units: • cigarettes up by 2.1 billion units (+14.3%); and • other tobacco products (fine cut, cigarillos) up by 1.6 billion ciga
Slide 11: Business Overview: Consolidated Financial Results
Business Overview Consolidated Financial Results Revenues Net of Excise Tax & VAT Profit from Operations (CZK billion) (CZK billion) +6.6% -3.4% 12.2 13.0 3.1 3.0 2011 2012 2011 2012 Source: Philip Morris ČR a.s. financials © 2013 Philip Morris ČR a.s. 11
Slide 12: Revenues, Net of Excise Tax and VAT
Revenues, Net of Excise Tax and VAT Consolidated Financial Results (CZK billion) 0.7 13.0 0.2 0.2 (0.4) 12.2 0.1 2011 Currency Price Vol / Mix Slovakia Exports 2012 Czech Republic Excluding the impact of currency, increase of CZK 0.6 billion (+5.3%) driven primarily by: • higher exports to other PMI
Slide 13: Profit from Operations
Profit from Operations Consolidated Financial Results (CZK billion) 0.2 (0.3) 3.1 (0.0) 0.1 (0.1) 3.0 (0.1) 0.1 2011 Currency Price Vol/Mix Var. Manuf. Slovakia Exports Other 2012 Costs Czech Republic Excluding the impact of currency, decrease of CZK 0.1 billion (-2.5%) due to: • unfavourable volume
Slide 14: Cash and Cash Equivalents
Cash and Cash Equivalents Consolidated Financial Results (CZK billion) 3.0 (0.6) (2.5) 5.9 (0.5) (0.1) 5.2 Cash at Dec'11 Profit before Income tax Dividends paid Change in Other Cash at Dec'12 tax working capital Cash decrease of CZK 0.7 billion mainly due to: • higher finished goods and raw materia
Slide 15: Fiscal Environment Czech Republic
Fiscal Environment Czech Republic Minimum Excise Tax Development Equivalent €90 / ’000 cigarettes (CZK / ’000) (EU minimum) * 2,250 2,180 2,100 2,010 2,010 1,920 2009 2010 2011 2012 2013 2014 * 2014 excise tax increase will depend on the effective EUR/CZK exchange rate prevailing on October 1, 2013
Slide 16: 2013 Update Czech Republic
2013 Update Czech Republic Registered Dec'12 RSP's 2013 Premium 86 89 Segment Medium 74 77 Segment Low 68 72 Segment • Excise tax and VAT increase as of January 1, 2013 Note: Retail prices in CZK/pack of 20 cigarettes Source: Price Gazette of the Ministry of Finance © 2013 Philip Morris ČR a.s. 16
Slide 17: Fiscal Environment Slovakia
Fiscal Environment Slovakia Minimum Excise Tax Development €90 / ’000 cigarettes (EUR / ’000) (EU minimum) 91.0 91.0 88.5 85.0 81.3 81.3 2009 2010 2011 Feb'12 Oct'12 2013 2014 Source: Act no. 288/2012 Coll., EU Council Directive 2011/64/EU © 2013 Philip Morris ČR a.s. 17
Slide 18: Dividend proposal
Dividend proposal (CZK / share) 2009 2010 2011 2012 Accumulated Retained 0 376 0 15 Earnings Net Income 780 884 920 885 Dividend Paid / Proposed 780 1,260 920 900 Source: Philip Morris ČR a.s. financials © 2013 Philip Morris ČR a.s. 18
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