Philip Morris International Inc · NYSE:PM
Philip Morris International — Investor Day (September 2023)
13 slides from Philip Morris International's investor day presentation, Sep 28, 2023
Slide 1: Championing a Smoke-Free World
Championing a Smoke-Free World Werner Barth President, Combustibles Category & Global Combustibles Marketing September 28, 2023 Forward-Looking and Cautionary Statements • This presentation contains projections of future results and goals and other forward-looking statements, including statements re
Slide 2: Glossary and Key Terms and Definitions
Glossary and Key Terms and Definitions • A glossary of terms, including the definition for smoke-free products as well as adjustments, other calculations and reconciliations to the most directly comparable U.S. GAAP measures for non-GAAP financial measures cited in this presentation are available on
Slide 3: Accelerated Combustibles Net Revenue Growth
Accelerated Combustibles Net Revenue Growth Adj. Net Revenues Organic Change vs. Previous Year 5.2% 3.7% 0.3% 2021 2022 H1'23 Note: Excluding 2021 impact related to Saudi Arabia customs assessment ($246 mio) and 2023 impact related to termination of distribution arrangement in Middle East ($80 mio)
Slide 4: Moderate Industry Decline, More Pronounced in SFP Markets
Moderate Industry Decline, More Pronounced in SFP Markets Cigarette Industry Evolution (in ‘000 bn cigarettes) Population 2.7 2.6 Change(b) 2.5 2.5 2.5 (2.2)% 1.2% Other Markets 1.8 1.7 (0.9)% 1.4% IQOS (a) 0.9 0.8 (4.9)% Markets (0.1)% 2018 2019 2020 2021 2022 CAGR (a) IQOS markets include all mark
Slide 5: Unit Rates Attractive Across Price Points
Unit Rates Attractive Across Price Points Cigarette Net Revenue Unit Rates Top 10 PMI Pricing Markets (index = Premium 2018) 160 100 102 52 Premium Low & Super Low Premium Low & Super Low 2018 2022 Note: Unit rates are net revenues per ‘000 sticks, evolution indexed in local currency, aggregated for
Slide 6: Strong Performance Across Top Markets
Strong Performance Across Top Markets Cigarette Share Performance Top 10 Combustible Markets Top 10 SFP Markets 36.3% 37.3% 35.6% 29.8% 30.2% 30.0% 2021 2022 H1'23 2021 2022 H1'23 Note: Excluding China and U.S. Reflects sales volumes of PMI cigarettes as a percentage of cigarette industry sales volu
Slide 7: Unparalleled Portfolio with Leading Brand Equity
Unparalleled Portfolio with Leading Brand Equity Marlboro Brand Power 2.5x Stronger than Closest Competitor 316 316 315 321 295 Marlboro 148 142 149 134 128 L&M 136 Closest 130 118 121 126 Competitor 2018 2019 2020 2021 2022 Note: Brand power index represents global average. Baseline average of 100.
Slide 8: Global Brands Catering To LAS Preferences
Global Brands Catering To LAS Preferences Low & Super Low Segment Full Flavor Segment (2022, Top 20 Combustible Markets) (2022, Top 20 Combustible Markets) +2.4pp 17.1% +0.2pp 23.2% vs PY 48.8% vs PY 57.8% +1.5pp +0.6pp vs PY vs PY Segment Share of Industry PMI Global Brands Share of Segment Note: L
Slide 9: Marlboro: Strong Across LAS Preferences and Price Ladders
Marlboro: Strong Across LAS Preferences and Price Ladders Standard #1 Slims #1 Capsule(a) #1 Core Core Core Premium NTDs Menthol Capsule Touch Core Core Big Packs NTDs Medium 100s Crafted Crafted Crafted Crafted Compact NTDs Menthol Capsule Low (a) Includes Capsule Menthol and NTDs where legally ava
Slide 10: Enabling Bridging to SFP
Enabling Bridging to SFP Consumer ~130m ~85m ~10m LAS of PMI Packs Sold/day LAS reach with Brands JustScan Trade >15m ~5m ~70m Digital Selling Stores Store interactions / Coverage(a) year (a) Coverage with PMI business building force and distributor sales force 19 Source: PMI Financials or estimates
Slide 11: Category Outlook and Targets 2024-26
Category Outlook and Targets 2024-26 2% to 4% Target Stable Total Cigarettes Industry Share of Category(a) Decline(a) Positive to 3% Supporting PMI Net Revenue Organic Margin Expansion Growth (Adjusted OI) (a) Excluding China and U.S. 21 PMI Financials or estimates Changing Smoker Demographics Distr
Slide 12: Evolving Smoker Preferences in SFP Markets
Evolving Smoker Preferences in SFP Markets Low & Super Low Price Segment(a) Tobacco Flavor Segment(b) 88% 85% 47% 35% 2018 2022 2018 2022 (a) Industry % of volume in Low & Super Low Price Segment, Top 10 SFP Markets (b) Industry % of volume in non-Menthol and non-NTD propositions, Top 10 SFP Markets
Slide 13: Combustibles Business as a Foundation for SFP Growth
Combustibles Business as a Foundation for SFP Growth • Accelerated industry decline, driven in part by SFP growth • Robust combustibles pricing engine • Positive share of category evolution • Support PMI margin expansion over time • Unparalleled global brands portfolio, with Marlboro at the helm • C
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