Philip Morris International Inc · NYSE:PM
Philip Morris International — Investor Day (June 2010)
96 slides from Philip Morris International's investor day presentation, Jun 23, 2010
Slide 1: Investor Day, Lausanne, June 23, 2010
Investor Day Lausanne, June 23, 2010 André Calantzopoulos Chief Operating Officer Philip Morris International
Slide 2: Agenda
Agenda ● Industry Overview ● Competitive Environment ● Illicit Trade and Regulatory Environment ● PMI Brand Portfolio Strategy ● Consumer Engagement ● Research and Development ● Questions and Answers 2
Slide 3: 2009 Tobacco Retail Industry Value Split
2009 Tobacco Retail Industry Value Split(a) ($ billions) $518 2005-09 CAGR: 7.1% $477 $41 Industry 22% 27% Pipe / Other Trade 11% 40% Cigars / 92% 8% Cigarillos Taxes 67% 33% Fine Cut Other Tobacco Products Cigarettes (a) Excluding USA Source: Euromonitor and PMI estimates 3
Slide 4: Price Segment Dynamics
Price Segment Dynamics(a) Overall OECD(b) non-OECD 18% 19% Premium 24% 25% 34% 35% 27% 31% Mid 29% 30% 33% 30% 55% 50% Low 47% 45% 33% 35% 2005 2009 2005 2009 2005 2009 Volume 3.3 3.3 1.2 1.1 2.1 2.2 (trillion units) (a) Excluding USA, PRC and duty free (b) OECD: Organization for Economic Co-operati
Slide 5: Key Taste/Format Segment Dynamics
Key Taste/Format Segment Dynamics(a) (billion units) Low Tar(b) Slims(c) Menthol CAGR: +3% CAGR: +19% CAGR: +1% 1,500 300 300 1,336 249 1,199 1,200 200 200 182 186 900 126 600 100 100 300 0 0 0 2005 2009 2005 2009 2005 2009 (a) Excluding USA, PRC and duty free (b) Includes ultra lights and super lig
Slide 6: Agenda
Agenda ● Industry Overview ● Competitive Environment ● Illicit Trade and Regulatory Environment ● PMI Brand Portfolio Strategy ● Consumer Engagement ● Research and Development ● Questions and Answers 6
Slide 7: 2009 Key Competitor Shares
2009 Key Competitor Shares(a) International Market(b) International Market excl. PRC(b) Other PMI PMI Other 14.9% 15.4% (c) 25.2% 26.0% 12.9% BAT 9.3% 40.8% 10.5% IMT 21.8% 5.5% JT 17.7% PRC BAT IMT JT (a) Volumes are on a calendar basis, except for IMT which reports on a fiscal year ending Septembe
Slide 8: 2009 Key Competitor Shares by Region
2009 Key Competitor Shares by Region(a) EU EEMA ASIA LA&C PMI 39% 23% 24%(b) 36% BAT 19% 22% 15% 50% JTI 16% 23% 16% 4% IMT 22% 11% 3% 1% Others 4% 21% 42% 9% Approx. 740 billion units (a) Excluding USA, PRC and duty free (b) Pro forma share after adjusting for the business combination with Fortune
Slide 9: 2009 Competitor Price Segment Volume Mix – OECD vs. non-OECD
2009 Competitor Price Segment Volume Mix(a) – OECD vs. non-OECD PMI BAT JT IMT Vol. Split 46% 54% 34% 66% 50% 50% 51% 49% 15% 12% 14% 11% 29% 31% 45% 16% Premium 56% 36% 40% 21% 27% 62% 27% Mid 20% 70% 50% 48% 53% 42% Low 24% 28% 23% OECD non- OECD non- OECD non- OECD non- OECD OECD OECD OECD (a) Ex
Slide 10: PMI Price Segment Volume Mix Evolution – non-OECD
PMI Price Segment Volume Mix Evolution(a) – non-OECD 2005 2009 Vol. Split 48% 54% Premium 43% 45% Mid 28% 27% Low 29% 28% (a) Excluding USA, PRC and duty free Source: PMI estimates 10
Slide 11: 2009 Competitor Market and Segment Share
2009 Competitor Market and Segment Share (%) PMI BAT JT IMT Market Share(a) 26.0 21.8 17.7 9.3 Segment Share(b) Low Tar 31.1 22.7 23.6 7.0 Menthol 29.2 20.0 15.3 4.1 Slims 25.6 15.8 15.5 4.4 Premium 52.9 23.9 9.5 3.9 Mid 20.6 15.8 28.6 6.4 Low 15.1 19.1 13.2 10.6 (a) Excluding USA and PRC (b) Exclud
Slide 12: PMI Market and Segment Share Evolution
PMI Market and Segment Share Evolution (%) 2005 2009 Var. (pp) Segment Share(a) Low Tar 30.7 31.1 0.4 Menthol 30.1 29.2 (0.9) Slims 25.1 25.6 0.5 Premium 51.4 52.9 1.5 Mid 20.0 20.6 0.6 Low 12.9 15.1 2.2 (a) Excluding USA, PRC and duty free Source: PMI estimates 12
Slide 13: Top International Brands (2009)
Top 15 International Brands (2009) (billion units) Marlboro Marlboro 302 Winston Mild Seven L&M L&M 91 Pall Mall Kent PMI Camel JT Viceroy BAT Bond Street Bond Street 42 Dunhill Philip Philip Morris Morris 38 Chesterfield Chesterfield 38 Parliament Parliament 37 LD Lark Lark 31 0 50 100 150 200 250
Slide 14: Agenda
Agenda ● Industry Overview ● Competitive Environment ● Illicit Trade and Regulatory Environment ● PMI Brand Portfolio Strategy ● Consumer Engagement ● Research and Development ● Questions and Answers 14
Slide 15: Illicit Trade
Illicit Trade ● Hurts industry, governments, public health and consumers ● Often the result of misguided policies ● Enormous opportunity, if successfully combated Source: World Bank, Joossens Report and PMI Brand Integrity 15
Slide 16: Illicit Trade
Illicit Trade ● Hurts industry, governments, public health and consumers ● Often the result of misguided policies ● Enormous opportunity, if successfully combated ● Illicit trade’s estimated share of consumption: Brazil 24% Canada 30% Ireland 23% Malaysia 37% Romania 36% Vietnam 35% ● Close cooperat
Slide 17: Illicit Trade
Illicit Trade ● Hurts industry, governments, public health and consumers ● Often the result of misguided policies ● Enormous opportunity, if successfully combated ● Illicit trade’s estimated share of consumption: Brazil 24% Canada 30% Ireland 23% Malaysia 37% Romania 36% Vietnam 35% ● Close cooperat
Slide 18: Regulatory Environment
Regulatory Environment ● PMI seeks comprehensive regulation based on: - The broader goal of harm reduction - Rigorous scientific evidence ● Emerging regulatory challenges: - Product display bans - Plain packaging - Bans on the use of all ingredients 18
Slide 19: Regulatory Environment
Regulatory Environment ● PMI strictly opposes such regulation ● No sound evidence that this would reduce consumption, smoking incidence, youth smoking or provide any other public health benefit ● Measures ignore severe adverse consequences 19
Slide 20: Regulatory Environment
Regulatory Environment ● PMI has a proven track record in a highly regulated environment ● PMI will use all resources to challenge unreasonable regulatory proposals: - Extensive stakeholder engagement based on facts and consequences - Use of litigation when necessary 20
Slide 21: Agenda
Agenda ● Industry Overview ● Competitive Environment ● Illicit Trade and Regulatory Environment ● PMI Brand Portfolio Strategy ● Consumer Engagement ● Research and Development ● Questions and Answers 21
Slide 22: Key Product Trends
Key Product Trends ● Lighter / smoother tasting products ● Slimmer diameters ● Refreshing / less lingering taste ● Low odor / less visible smoke ● Lower ecological impact 22
Slide 23: Key PMI Portfolio Priorities
Key PMI Portfolio Priorities ● Maintain strong product and consumer communication innovation pipeline ● Improve success rate and efficiency of new product launches ● Reduce out-switching of existing adult smokers ● Year-round support ● Optimize resource allocation 23
Slide 24: Brand Portfolio
Brand Portfolio International Local Heritage Premium & Above Mid-Price Low-Price 24
Slide 25: Marlboro Architecture
Marlboro Architecture Flavor Gold Fresh “Superior tobacco “Progressiveness in “Refreshing taste satisfaction and smoothness and sensations and personal confidence” social confidence” confidence to discover” 25
Slide 26: Marlboro
Marlboro ● Very optimistic about growth prospects ● Resilient to weak economic environment ● New architecture is working ● Share gains in a number of markets in Q1, 2010 ● Improved Young Adult Smoker(a) profile (a) Legal Age (min. 18) – 24 Source: PMI estimates and General Consumer Tracking Survey (
Slide 27: Marlboro Flavor Line
Marlboro Flavor Line Note: Pack designs for illustrative purposes only 27
Slide 28: Marlboro Flavor Line Innovation
Marlboro Flavor Line Innovation ● New Marlboro Red pack upgrade: - Introduced in 23 markets at the end of Q1, 2010 - 44% of Marlboro Red volume ● Marlboro Filter Plus / Flavor Plus: - Unique filter with one chamber containing tobacco for added flavor - Introduced in 40 markets at the end of Q1, 2010
Slide 29: Strengthening Marlboro Red
Strengthening Marlboro Red France Austria (1-10 Scale - % increase after launch of New Red Pack) (% increase after launch of New Red Pack) 8 +15% 60 +11% +22% +16% +11% +12% 7 +16% +31% 50 6 +13% 5 40 4 30 +38% 3 20 2 1 10 0 0 Worth its Innovative Modern In the spirit Beautiful Worth its Will attrac
Slide 30: Marlboro Filter / Flavor Plus
Marlboro Filter / Flavor Plus ● Promising Young Adult Smoker profile ● Potential for above premium pricing ● Innovative sliding-lid pack ● Helping to build PMI share in ultra light taste and 1mg segments ● Positive “halo” effect on parent brand Q1, 2010 Market Shares 2.8% 2.1% 1.3% 0.8% 0.7% 0.5% 0.
Slide 31: Marlboro Flavor – Staging
Marlboro Flavor – Staging 31
Slide 32: Marlboro Gold Line
Marlboro Gold Line Note: Pack designs for illustrative purposes only 32
Slide 33: Marlboro Gold Line Innovation
Marlboro Gold Line Innovation ● On a stand alone basis, Marlboro Gold is the second largest brand after Marlboro Red ● Continue to roll out core packaging ● Cover entire taste range from full flavor to 1 mg 33
Slide 34: Marlboro Gold
Marlboro Gold ● Market share improvement in 20 markets out of 29 launched(a) ● In the nine remaining markets, share of premium segment improved/stabilized ● Young Adult Smoker share improvement in 20 markets Top 10 Markets by SoM Increase Q1, 2010 vs. Q1, 2009 (pp) +0.9 +0.8 +0.7 +0.5 +0.5 +0.4 +0.4
Slide 35: Marlboro Gold
Ne ye FINE TOUCH | |
Slide 36: Marlboro Gold Original – Switzerland
Marlboro Gold Original – Switzerland Gold Brand Image Perception 2009 Smoker Share LA (min. 18) - 24 Post vs. Pre-conversion Unconventional brand 15 % Pack Swiss 80 change German For people who Innovating National want the very best 60 10 Swiss 40 Is fun Modern French 20 5 Worth its 0 Trendy price b
Slide 37: Marlboro Gold Touch
Marlboro Gold Touch ● Achieved 1.5 billion units in 2009 across nine markets ● Promising Young Adult Smoker profile Q1, 2010 Market Shares 1.4% 0.9% 0.6% 0.6% 0.3% Italy Romania Greece Moscow Hungary Source: PMI Financials, PMI estimates and A.C. Nielsen 37
Slide 38: Marlboro Gold Edge
Marlboro Gold Edge ● Achieved 936 million units in 2009 across nine markets ● Continue building awareness Q1, 2010 Market Shares 0.7% 0.4% 0.3% 0.3% Warsaw Kiev Budapest Moscow Source: PMI Financials and A.C. Nielsen 38
Slide 39: Marlboro Gold Smooth 1mg
Marlboro Gold Smooth 1mg ● Introduced into seven markets at the end of Q1, 2010 ● SoM performance ranges from 0.4% (Qatar) to 1.1% (Kuwait) ● Improved Young Adult Smoker profile Saudi Arabia Age Profile Source of Volume 32% 44% 35-64 Marlboro 40% Competition 25-34 44% 36% 56% 28% LA (min. 18) - 24 2
Slide 40: Marlboro Fresh Line
Marlboro Fresh Line PHILIP NORRIS INTERNATIONAL
Slide 41: Marlboro Fresh Portfolio
Marlboro Fresh Portfolio Fresh Black Freeze Ice Express ● Menthol thread in filter ● Menthol thread in filter ● Menthol capsule in filter ● Refreshing taste ● High cooling sensation ● On demand extra cooling sensations 41
Slide 42: Marlboro Black Menthol
Marlboro Black Menthol ● Achieved 3.9 billion units in 2009 across eight markets ● Most successful launch in Japan ever ● SoM of 1.3% in Japan in Q1, 2010 ● Improved Young Adult Smoker profile Japan Age Profile Source of Volume 24% 58% 40+ Competition Marlboro 60% 49% 51% 36% 25-39 16% 6% LA (min.20
Slide 43: Marlboro Ice Blast / Ice Xpress
Marlboro Ice Blast / Ice Xpress ● Promising results in Hong Kong, Singapore and Colombia Marlboro Ice Blast / Ice Xpress Share of Market (%) 5 4.3 Hong Kong 4 3.7 3.1 2.9 2.8 3 Singapore 3.1 2.9 2.7 2 1.7 1.1 1 0.7 0.6 0.6 0.5 0.4 0.1 0.3 Colombia 0 0.0 Oct Nov Dec Jan Feb Mar Apr 2009 2010 Source:
Slide 44: Marlboro Black Menthol One – Japan
Marlboro Black Menthol One – Japan 44
Slide 45: Marlboro Fresh
Palenie powaznie szkodzi Tobie i osobom w Twoim otoczeniu
Slide 46: Marlboro
Marlboro uIP MORRIS INTERNATIONAL Nnywewe y6uja AysaucKku y Bawoj ox OnWUHE
Slide 47: Parliament
PARLIAMENT
Slide 48: Parliament – Brand Status
Parliament – Brand Status Volume Development (billion units) Key Markets (billion units) 40 37.4 37.3 2.5 Ukraine 2.5 31.2 30 27.9 4.1 24.4 Korea 3.1 20 Rest of World 5.4 Asia Japan 5.8 EEMA 10 9.1 Turkey 8.9 10.2 0 Russia 10.7 2005 2006 2007 2008 2009 2008 2009 Smoker Shares 2009 (%) 14 12.4 12 E
Slide 49: Parliament – Russia Mainline
Parliament – Russia Mainline 49
Slide 50: Parliament – Russia Reserve Super Slims
Parliament – Russia Reserve Super Slims 50
Slide 51: Parliament
Parliament 51
Slide 52: Parliament
Parliament 52
Slide 53: Parliament
Parliament PHILIP MORRIS INTERNATIONAL
Slide 54: Parliament Nouveau – Japan
Parliament Nouveau – Japan An exclusive blend made from the first leaves of this year’s new crop 54
Slide 55: Parliament – Korea
Parliament – Korea (%) Parliament Market Share 7 5.7 4.3 1.9 0.5 0.1 0.2 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q1 2010 (%) 2007 (%) 2009 12.4 5.0 4.3 1.9 SOM LA (Min 19)-24 SOM LA (Min 19)-24 Smoker share Smoker share Source: Hankook Research, Korea and GCTS 55
Slide 56: Fumar perjudica
Fumar perjudica gravemente su salud y lade los que estan a su alrededor
Slide 57: L&M – Brand Status
L&M – Brand Status Volume Development (billion units) 120 106 105 Strong performance in the 97 100 92 91 EU Region and North 80 Africa 60 EEMA Volume decline in Russia 40 Rest of World 20 0 2005 2006 2007 2008 2009 Smoker Shares 2009 (%) 35 32.3 30 25 20.4 20 17.8 16.8 LA-24 LA-64 15 13.4 10 7.9
Slide 58: L&M – EU Region
L&M – EU Region ● Strong second leg at lower end of the market in Western Share of Market Q1, 2010 Europe established ● Volume grew by close to 9% in the EU Region in 2009 and by a further 6.6% in Q1, 2010 17.9% 14.9% 13.7% 9.6% 9.1% Slovakia Belgium Poland Sweden Germany Source: PMI Financials and
Slide 59: L&M Innovations – Slims Portfolio
L&M Innovations – Slims Portfolio More masculine More feminine 59
Slide 60: L&M Kretek – Brazil
L&M Kretek – Brazil First Kretek offer of an international brand in Brazil 60
Slide 61: TO KANNIZMA BAANTE] TOBAPA THN YP
TO KANNIZMA BAANTE] TOBAPA THN YP Las autoridades sanitarias advierten 125 autoridades sanitarias advierten Fumar Fumar puede matar puede matar
Slide 62: Philip Morris International
PHILIP MORRIS INTERNATIONAL
Slide 63: Chesterfield – Brand Status
Chesterfield – Brand Status Volume Development (billion units) 40 40.7 37.7 Expansion in the EU Region 35.8 30.7 Growing relevance to LA-24 30 smokers in key markets 20 10 0 2006 2007 2008 2009 Smoker Shares 2009 (%) 25 23.8 20 16.9 15 13.4 LA-24 10.6 LA-64 10 7.7 5.1 3.2 4.2 5 0 Russia Ukraine
Slide 64: Chesterfield
Chesterfield ● Modernizing the pack ● Promising consumer feedback ● Significant improvement versus old pack Old Packs New Packs 64
Slide 65: Chesterfield – Germany
25€ 19 Zigaretten 1 / kann tddlich sein Die Menge an Teer, Nikotin und Kohlenmonoxid, die Sie inhalieren, variiert, je né 2 Sie Ihre Zigarette rauche Rauchen kann tédlich sein. Der Rauch einer Zigarette dieser Marke enthalt 10 mg Teer, 0,8 mg Nikotin und 10 mg Kohlenmonoxid. (Durchschnittswerte nach
Slide 66: Chesterfield
Chesterfield Mae” < Saxaget CHESTERFIELD SUPERSLIMS | XAPAKTEP HE lIPUXOBAELU ie; Bae \ 4) (VPIHHG MOE BIKIINKAT 3AXBOPKOBAAHG! HA PAK
Slide 67: Chesterfield
Chesterfield 67
Slide 68: Agenda
Agenda ● Industry Overview ● Competitive Environment ● Illicit Trade and Regulatory Environment ● PMI Brand Portfolio Strategy ● Consumer Engagement ● Research and Development ● Questions and Answers 68
Slide 69: Consumer Engagement Trends
Consumer Engagement Trends ● Portfolio complexity and consumer fragmentation ● Restricted access to mass media ● Direct consumer contact ● Tailor-made content that changes frequently ● Point of sale remains vital 69
Slide 70: Consumer Engagement Trends
Consumer Engagement Trends ● Portfolio complexity and consumer fragmentation ● Restricted access to mass media ● Direct consumer contact ● Tailor-made content that changes frequently ● Point of sale remains vital ● Longer support periods for new products and existing brands ● Building a competitive
Slide 71: Agenda
Agenda ● Industry Overview ● Competitive Environment ● Illicit Trade and Regulatory Environment ● PMI Brand Portfolio Strategy ● Consumer Engagement ● Research and Development ● Questions and Answers 71
Slide 72: R&D Strategies
R&D Strategies ● Significantly reduce the risk to smokers ● Develop and commercialize products that: - Do not burn tobacco - Provide acceptable taste and smoking ritual 72
Slide 73: R&D Strategies
R&D Strategies ● Significantly reduce the risk to smokers ● Develop and commercialize products that: - Do not burn tobacco - Provide acceptable taste and smoking ritual ● Provide robust substantiation of risk reduction combining: - Classical risk assessment techniques from the pharmaceutical industr
Slide 74: R&D Strategies
R&D Strategies ● Significantly reduce the risk to smokers ● Develop and commercialize products that: - Do not burn tobacco - Provide acceptable taste and smoking ritual ● Provide robust substantiation of risk reduction combining: - Classical risk assessment techniques from the pharmaceutical industr
Slide 75: R&D Resources and Current Status
R&D Resources and Current Status ● Experienced team of over 500 scientists and engineers ● An array of external collaborations and strategic alliances ● Impressive Scientific Advisory Board ● Current status: - Very good progress on a complex and challenging undertaking - Commercialization in four to
Slide 76: Summary
Summary ● Leading international tobacco company ● Superior brand portfolio with excellent prospects to grow through innovation and geographic expansion ● New Marlboro architecture is working ● Increasingly focused consumer engagement activities ● Regulation, although challenging, is manageable ● Lea
Slide 77: Questions & Answers
Investor Day Lausanne, June 23, 2010 Questions & Answers
Slide 78: Forward-Looking and Cautionary Statements
Forward-Looking and Cautionary Statements 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 Litigation Reform Act of 1995. Su
Slide 79: Glossary of Terms
Glossary of Terms ● References to PMI volumes refer to shipment volume, unless otherwise stated ● Industry volume and market shares are from a number of internal and external sources ● Organic volume refers to volume excluding acquisitions ● Net revenues exclude excise taxes ● Operating Companies In
Slide 80: Reconciliation of Non-GAAP Measures
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Adjustments for the Impact of Currency and Acquisitions For the Quarters Ended March 31, ($ in millions) (Unaudited) % Change in Reported Net 2010 2009 Revenues excluding Excise Taxes Reported Net Reported Net Reve
Slide 81: Reconciliation of Non-GAAP Measures
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Reported Operating Companies Income to Adjusted Operating Companies Income, excluding Currency and Acquisitions For the Quarters Ended March 31, ($ in millions) (Unaudited) % Change in Adjusted Op
Slide 82: Reconciliation of Non-GAAP Measures
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS and Adjusted Diluted EPS, excluding Currency For the Quarters Ended March 31, (Unaudited) 2010 2009 % Change Reported Diluted EPS $ 0.90 $ 0.74 21.6% L
Slide 83: Reconciliation of Non-GAAP Measures
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Operating Cash Flow to Free Cash Flow and Free Cash Flow, excluding Currency Reconciliation of Operating Cash Flow to Operating Cash Flow, excluding Currency For the Quarters Ended March 31, ($ in
Slide 84: Reconciliation of Non-GAAP Measures
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Reported Operating Companies Income to Adjusted Operating Companies Income, excluding Currency and Acquisitions For the Years Ended December 31, ($ in millions) (Unaudited) % Change in Adjusted Op
Slide 85: Reconciliation of Non-GAAP Measures
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Adjustments for Impact of Currency and Acquisitions For the Years Ended December 31, ($ in millions) (Unaudited) % Change in Reported Net 2009 2008 Revenues excluding Excise Taxes Reported Reported Net Reported Net
Slide 86: Reconciliation of Non-GAAP Measures
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS and Adjusted Diluted EPS, excluding Currency For the Years Ended December 31, (Unaudited) 2009 2008 % Change Reported Diluted EPS $ 3.24 $ 3.31 (2.1)%
Slide 87: Reconciliation of Non-GAAP Measures
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Reported Operating Companies Income to Adjusted Operating Companies Income, excluding Currency and Acquisitions For the Years Ended December 31, ($ in millions) (Unaudited) % Change in Adjusted Op
Slide 88: Reconciliation of Non-GAAP Measures
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Adjustments for Impact of Currency and Acquisitions For the Years Ended December 31, ($ in millions) (Unaudited) % Change in Reported Net Revenues 2008 2007 excluding Excise Taxes Reported Net Reported Net Reported
Slide 89: Reconciliation of Non-GAAP Measures
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Reported Operating Companies Income to Adjusted Operating Companies Income, excluding Currency and Acquisitions For the Years Ended December 31, ($ in millions) (Unaudited) % Change in Adjusted Op
Slide 90: Reconciliation of Non-GAAP Measures
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Adjustments for Impact of Currency and Acquisitions For the Years Ended December 31, ($ in millions) (Unaudited) % Change in Reported Net Revenues 2007 2006 excluding Excise Taxes Reported Reported Net Reported Net
Slide 91: Reconciliation of Non-GAAP Measures
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Adjustments for Impact of Currency and Acquisitions For the Years Ended December 31, ($ in millions) (Unaudited) % Change in Reported Net Revenues 2006 2005 excluding Excise Taxes Reported Reported Net Reported Net
Slide 92: Reconciliation of Non-GAAP Measures
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Adjustments for Impact of Currency and Acquisitions For the Years Ended December 31, ($ in millions) (Unaudited) % Change in Reported Net Revenues 2005 2004 excluding Excise Taxes Reported Reported Net Reported Net
Slide 93: Reconciliation of Non-GAAP Measures
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Calculation of Total Debt to EBITDA and Net Debt to EBITDA Ratios ($ in millions, except ratios) (Unaudited) For the Year Ended March 31, December 31, 2010 2009 April ~ December January ~ March 12 months 2009 2010
Slide 94: Reconciliation of Non-GAAP Measures
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Calculation of Total Debt to EBITDA and Net Debt to EBITDA Ratios ($ in millions, except ratios) (Unaudited) March 31, 2008 April ~ December January ~ March 12 months 2007 2008 rolling Earnings before income taxes
Slide 95: Reconciliation of Non-GAAP Measures
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Reported Operating Income to Reported Operating Companies Income Reconciliation of Reported Operating Companies Income to Adjusted Operating Companies Income For the Years Ended December 31, ($ in
Slide 96: Investor Day, Lausanne, June 23, 2010
Investor Day Lausanne, June 23, 2010
Philip Morris International — Investor Day (June 2010) on 6ix