Philip Morris International Inc · NYSE:PM
Philip Morris International — Investor Day (June 2010)
86 slides from Philip Morris International's investor day presentation, Jun 23, 2010
Slide 1: Investor Day – EU Region
Investor Day – EU Region Lausanne, June 23, 2010 Jacek Olczak President, European Union Region Philip Morris International
Slide 2: Agenda
Agenda ● EU Region at a glance ● 2010 and beyond: business outlook ● Key 5 EU markets: highlights ● Concluding remarks ● Questions & Answers 2
Slide 3: EU Region – Overview
EU Region – Overview Cigarettes 2009 Cigarette Industry (billion units) 607 2009 Legal Age - 64 Smoking Incidence (%) 22.6 2009 PMI Share of Cigarette Market (%) 38.8 Other Tobacco Products (“OTP”) 2009 OTP Industry (billion units equivalent) 124 2009 PMI Share of OTP Market (%) 11.5 Population (mil
Slide 4: EU Macro-Economic Outlook
EU Macro-Economic Outlook Real GDP Growth (%) Inflation Rate (%) 3.2 2.9 3.7 1.7 0.8 1.0 2.3 2.4 2009 1.8 1.7 2006 2007 2008 2009 2010 2011 1.0 (4.2) 2006 2007 2008 2009 2010 2011 Unemployment Rate (%) Government Debt (as % of GDP) 79.6 83.7 9.8 9.7 73.6 8.9 8.2 61.4 58.8 61.6 7.1 7.0 2006 2007 2008
Slide 5: 2010 Government Debt and Budget Deficit
2010 Government Debt and Budget Deficit(a) Structural budget deficit in % of GDP >= 7% >= 3% & <7% 50.5% 46.0% 42.6% -1.3% -2.7% NA -0.2% < 3% -6.8% 9.6% 77.3% -2.1% -9.3% 19.0% -1.4%66.3% 48.5% -6.7% -4.9% 79.1% 99.0% 38.6% -10.4% -3.8% -6.8% 78.8% 53.9% -3.6% -6.3% 39.8% 40.8% -4.9% 83.6% -5.4% -6
Slide 6: Cigarette Industry Volume
Cigarette Industry Volume CAGR -2.3% (billion units) WE: -2.1% / CE: -2.9% 665 658 646 629 607 536 527 516 507 493 129 131 130 122 114 2005 2006 2007 2008 2009 Western Europe Central Europe Note: Adjusted for trade inventory distortions in the Czech Republic Source: PMI estimates 6
Slide 7: Top Cigarette Markets (2009)
Top 10 Cigarette Markets (2009) Industry Volume (billion units) Italy 89.2 Germany 85.5 Spain 81.7 Poland 61.1 France 55.0 United Kingdom 46.7 Greece 31.0 Czech Republic 21.7 Hungary 15.3 Netherlands 13.4 Source: PMI estimates 7
Slide 8: OTP Industry Volume
OTP Industry Volume CAGR 4.2% (billion units Smoking tobacco 9.4% / Cigarillos and others -16.0% equivalent)(a) 124 114 118 105 106 14 14 16 20 29 104 110 98 86 77 2005 2006 2007 2008 2009 Smoking Tobacco (RYO/MYO/Pipe) Cigarillos & Others(b) (a) Smoking tobacco converted to cigarettes equivalents b
Slide 9: EU Region Contribution to 2009 PMI Results
EU Region Contribution to 2009 PMI Results Cigarette Shipment Volume EU 27% Net Revenues Operating Companies Income EU 36% EU 44% Source: PMI Financials 9
Slide 10: PMI Regional Cigarette Market Share
PMI Regional Cigarette Market Share (%) 50 39.3 39.2 38.8 10 2007 2008 2009 Source: PMI estimates 10
Slide 11: PMI Market Share Leadership
PMI Market Share Leadership PMI in 2009: #1 in 21 markets #2 in 8 markets #3 in 3 markets Source: PMI estimates 11
Slide 12: Top Cigarette Brand Families
Top 10 Cigarette Brand Families (%) Market Share, Q1, 2010 20 18.0 5.7 4.4 4.4 3.9 2.9 2.7 2.3 2.1 2.0 0 e on ld S s M o el na l al ise rik or JP fie L& am st M ia lb St lo er in D C ll ar au W Pa st y M ck he G Lu C Source: PMI estimates 12
Slide 13: EU Region Results
EU Region Results Shipment Volume Net Revenues CAGR 2007-09: (4.4)% CAGR 2007-09: 1.2% (billion units) ($ billion) 300 10 9.7 8.8 9.0 258 243 235 55 52 2.0 2.2 0 0 2007 2008 2009 Q1 2010 2007 2008 2009 Q1 2010 YoY – excl. currency and acquisitions: YoY (0.2)% (5.5)% (3.3)% (4.8)% +2.6% -0.8% +1.5% +
Slide 14: EU Region Results – Operating Companies Income
EU Region Results Operating Companies Income CAGR 2007-09: 3.6% ($ billion) 5 4.7 4.5 4.2 1.0 1.1 0 2007 2008 2009 Q1 2010 YoY – excl. currency and acquisitions: +7.8% +2.2% +4.4% +1.3% Source: PMI Financials 14
Slide 15: Agenda
Agenda ● EU Region at a glance ● 2010 and beyond: business outlook ● Key 5 EU markets: highlights ● Concluding remarks ● Questions & Answers 15
Slide 16: Key Strategies
Key Strategies ● Grow share of market: - Leverage the new Marlboro architecture to defend its leading position - Expand further into profitable low-price cigarette segment and OTP ● Continue to deliver OCI growth through balanced pricing and price gap management ● Advocate for moderate excise tax in
Slide 17: Marlboro Red or Flavor Line
Marlboro Red or Flavor Line ● Extended reach ● New line-up Note: pack design for illustrative purposes only 17
Slide 18: Marlboro Red New Architecture
Marlboro Red New Architecture Red 17 markets Source: PMI Financials 18
Slide 19: Marlboro Gold Line
Marlboro Gold Line ● Upgraded Gold packaging ● Variety of diameters and taste profiles ● Perceived as more modern and innovative Note: pack design for illustrative purposes only 19
Slide 20: Marlboro Gold New Architecture
Marlboro Gold New Architecture Gold Original 27 markets Source: PMI Financials 20
Slide 21: Marlboro Smoker Shares – Western Europe
Marlboro Smoker Shares (pp) Western Europe 10 (Variance LA-24 vs. LA-64) 8 6 4 2 Germany Spain 0 Portugal Sweden Austria Greece Belgium Netherlands Italy France UK -2 -4 Note: LA stands for Legal Age (minimum 18). All data are 2009 Source: PMI Market Research General Consumer Tracking Survey (“GCTS”
Slide 22: Marlboro Smoker Shares – Central Europe
Marlboro Smoker Shares (pp) Central Europe 10 (Variance LA-24 vs. LA-64) 8 6 4 2 0 Latvia Estonia Lithuania Hungary Slovakia Czech Poland Republic Note: LA stands for Legal Age (minimum 18). All data are 2009 Source: PMI Market Research GCTS 22
Slide 23: Price Segmentation
Price Segmentation Total Market by Price Segment (%)(a) PMI Share of Segment(a) (%) 75 68.5 69.1 69.4 Premium 33.1 31.6 30.9 Premium 16.5 16.3 16.0 Mid 45 35.1 34.7 34.7 Mid 50.4 52.1 53.1 Low 19.2 19.6 20.1 Low 15 2007 2008 2009 2007 2008 2009 (a) Top 10 EU Region markets. Source: PMI estimates bas
Slide 24: Marginal Contribution Ratio by Price Segment (2009)
Marginal Contribution Ratio by Price Segment (2009) (%) 100 100 74 63 63 Average PMI 41 26 0 Premium Mid Low Premium Mid Low Western Europe Central Europe Note: Ratio indexed on marginal contribution of premium brand in Western Europe Source: PMI Financials 24
Slide 25: L&M
L&M ● Shipment volume grew by close to 9% in the EU Region in 2009 Share of Market (%) 6 5.5 5.7 L&M 5.0 4.6 4.4 3.9 4.1 Pall Mall 3.6 3.7 3.9 3 3.5 Winston 2.9 2.8 2.9 2.5 JPS 2.1 0 2007 2008 2009 Q1, 2010 Source: PMI Financials and PMI estimates 25
Slide 26: L&M Share of Market Increase in Key Markets
L&M ● Significant share of market increase in key markets Share of Market Q1, 2010 Variance vs. PY (pp) (%) 17.9 18 +10.7 14.9 13.7 +1.6 -1.4 9.6 9.1 +4.2 8.1 7.5 +1.5 6.6 +1.1 +0.9 +1.6 0 Slovakia Belgium Poland Sweden Germany Netherlands Czech Spain Republic Source: PMI estimates 26
Slide 27: PMI OTP Volume
PMI OTP Volume (billion units PMI OTP Shipments by Category equivalent)(a) 15 14.1 13.2 0.7 Cigarillos & Others(b) 1.2 3.3 Pipe 10.2 4.5 1.9 2.6 10.0 Fine Cut 7.5 5.7 0 2007 2008 2009 (a) Assuming 1 unit equivalent = 0.75g or 1 cigarillo (b) Others include snus in Norway and Sweden and tobacco rods
Slide 28: Marginal Contribution Ratio OTP vs. Low-Price Cigarettes
Marginal Contribution Ratio OTP vs. Low-Price Segment Cigarettes (2009) (%) 100 100 62 41 25 0 Low-Price Selected OTP Low-Price All other OTP (a) Cigarettes Western markets Cigarettes Central markets Europe Europe (a) Top six markets: Belgium, France, Germany, Luxembourg, Netherlands and Spain Note:
Slide 29: Pricing
Pricing ● In 2009 and Q1, 2010, PMI implemented prices increases notably in: 2009 2010 Belgium Austria Czech Republic Norway France Poland Germany Portugal Greece Spain Hungary UK Italy Netherlands Poland Portugal Spain UK Source: PMI Financials 29
Slide 30: European Union Excise Tax Framework
European Union Excise Tax Framework New Directive Old Directive Comments Implementation 2011 - Technical changes as of Date 2011. New minima as of 2014 Minimum Tax € 90/000 on all € 64/000 on Transition until 2018 for Yield cigarettes MPPC most Central Europe countries Minimum Tax 60% on WAP 57% on
Slide 31: Pricing Variance vs. Volume/Mix Variance
Pricing Variance vs. Volume/Mix Variance ($ million) Pricing variance 520 520 Volume/Mix variance(a) 382 (358) (305) 1.1x 1.7x 127 (81) 1.6x 0 2008 2009 Q1 2010 (a) Volume/mix variances are negative Source: PMI Financials 31
Slide 32: Price Gaps: Marlboro vs. Key Low-Price Brand
Price Gaps: Marlboro vs. Key Low-Price Brand (%) 45 41 39 36 37 34 33 34 32 30 30 29 24 25 21 19 18 18 15 10 10 0 a) ) s (a ry ( y nd ch K n ce ly e nd an ai ec U ga Ita ze la an Sp rla m re Po un C Fr er G he H G et N 2008 Year End 2009 Year End (a) Netherlands refers to October 2009 and October 20
Slide 33: Counterfeit and Contraband Cigarette Volume
Counterfeit and Contraband Cigarette Volume (% of total consumption) (billion units) 8.4% 8.6% 8.9% 60.6 60.5 61.1 2007 2008 2009 ● Advocate for moderate excise tax increases ● Co-operate with EU and member states ● Continue to develop and enhance joint strategies to counter illicit trade (a) Nether
Slide 34: Regulatory Environment
Regulatory Environment ● Support evidence-based regulation ● Combat display bans ● Oppose measures that restrict competition and encourage illicit trade 34
Slide 35: Agenda
Agenda ● EU Region at a glance ● 2010 and beyond: business outlook ● Key 5 EU markets: highlights ● Concluding remarks ● Questions & Answers 35
Slide 36: France – Total Industry Volume
France – Total Industry Volume (billion units) Variance vs. PY 66.9 65.7 66.9 1.8 % TOTAL 54.9 53.6 55.0 2.6 % Cigarettes 12.0 12.1 11.9 (1.7)% Other Tobacco Products(a) 2007 2008 2009 (a) Includes fine cut and cigars & cigarillos. Fine cut converted to cigarettes equivalents based on conversion rat
Slide 37: France – Price Segment Shares
France – Price Segment Shares (%) 60 51.0 47.6 46.9 47.2 Premium(a) 40.7 41.5 Low(c) 39.2 36.1 7.1 7.8 7.5 6.7 Mid(b) 0 2007 2008 2009 Q1 2010 (a) Premium: mainly Marlboro, Philip Morris and Camel (b) Mid: mainly Chesterfield, Lucky Strike and Royale (c) Low: mainly L&M, Basic, Winston, Gauloises, N
Slide 38: France – Cigarette Market Shares
France – Cigarette Market Shares (%) 50 42.5 40.8 40.6 PMI 28.5 29.2 28.7 IMT 15.4 15.6 15.4 BAT 14.2 14.8 JT 13.4 0 2007 2008 2009 Source: Altadis Distribution France 38
Slide 39: France – PMI Premium Brand Shares
France – PMI Premium Brand Shares (%) 40 30.2 30 27.3 26.5 Marlboro 20 10 7.0 6.2 6.5 Philip Morris 0 2007 2008 2009 Source: Altadis Distribution France 39
Slide 40: France – PMI Premium Brand Shares
France – PMI Premium Brand Shares (%) 30 26.1 26.0 26.1 25.6 25.9 26.1 26.2 Marlboro 20 10 7.4 7.6 7.6 7.7 7.8 7.8 7.2 Philip Morris 0 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Source: Altadis Distribution France 40
Slide 41: France – 2010 and Beyond Business Outlook
France – 2010 and Beyond Business Outlook ● Advocate for a predictable fiscal and regulatory environment ● Further develop our well-established and comprehensive brand portfolio: - Continue roll-out of the Marlboro architecture - Leverage momentum of Philip Morris brand in premium - Reinforce our po
Slide 42: Spain – Total Industry Volume
Spain – Total Industry Volume (billion units) Variance vs. PY 94.5 97.2 90.2 (7.2)% TOTAL 89.5 90.6 81.7 (9.9)% Cigarettes Other Tobacco 5.0 6.6 8.5 28.8% Products(a) 2007 2008 2009 (a) Includes fine cut and cigars & cigarillos. Fine cut converted to cigarettes equivalents based on conversion ratio
Slide 43: Spain – Total Cigarette Volume
Spain – Total Cigarette Volume (%) 19.7 19.0 16.4 Premium (a) 16.0 Mid(b) 16.7 16.5 63.6 64.5 67.6 Low(c) 2007 2008 2009 (a) Premium: mainly Marlboro (b) Mid: mainly Chesterfield and Camel (c) Low: mainly Fortuna, Winston, Ducados Black, Lucky Strike, Nobel, Marlboro Pocket Pack, Ducados Blond, L&M
Slide 44: Spain – Cigarette Market Shares
Spain – Cigarette Market Shares (%) 40 37.3 36.7 35.6 IMT 32.1 31.9 31.9 PMI 30 19.6 20.1 20.2 JT 20 8.6 8.6 9.4 BAT 10 0 2007 2008 2009 Source: Tobacco Market Commissioner and Logista 44
Slide 45: Spain – PMI Brand Shares
Spain – PMI Brand Shares (%) 20 16.5 16.3 15.3 14.5 Marlboro 9.7 9.9 9.4 Chesterfield 10 9.2 6.6 L&M 5.9 4.7 4.4 0.7 0.9 0.9 1.0 Philip Morris 0 2007 2008 2009 Q1 2010 Source: Tobacco Market Commissioner and Logista 45
Slide 46: Spain – 2010 and Beyond Business Outlook
Spain – 2010 and Beyond Business Outlook ● Reinforced public smoking restrictions expected as of 2011 ● No sign of economic recovery ● PMI has increased prices by €0.25 / pack ahead of July VAT increase ● Solid portfolio to address affordability: - Marlboro Pocket Pack and Marlboro Gold Touch - Ches
Slide 47: Germany – Total Industry Volume
Germany – Total Industry Volume (billion units) Variance vs. PY 127.9 125.2 1.0 % TOTAL 124.0 89.3 85.5 (1.7)% Cigarettes 86.9 38.6 37.1 39.7 7.1 % Other Tobacco Products(a) 2007 2008 2009 (a) Fine cut converted to cigarettes equivalents based on conversion ratio of 0.50 to 0.75 depending on the pro
Slide 48: Germany – Total Industry Volume
Germany – Total Industry Volume (%) Higher Price 35.7 33.0 Industry 37.0 Cigarettes(a) 61.6% 60.4% Lower Price 27.4 Industry 24.6 26.5 Cigarettes(b) 8.2 7.9 7.9 Private Label Cigarettes Other Tobacco 30.2 29.9 31.7 Products(c) 2007 2008 2009 (a) Higher Price: mainly Marlboro, Gauloises Blondes, Luck
Slide 49: Germany – Cigarette Market Shares
Germany – Cigarette Market Shares (%) 40 36.9 36.5 36.5 PMI 27.1 27.5 27.1 IMT(a) 18.4 18.0 18.4 BAT Private 11.7 11.3 11.5 Label 5.0 5.0 5.0 JT 0 2007 2008 2009 (a) Gauloises Blondes shown under IMT Source: PMI Market Statistics based on MSI 49
Slide 50: Germany – Pricing
Germany – Pricing Monthly SoM (%) 22.0 Marlboro 22.0 23.8 25.4 20.2 RSP (Euro/pack) Marlboro 4.70 L&M 4.20 4.25 4.00 Pall Mall 3.80 3.70 3.60 Private Label 3.25 9 0 Ap 9 Ap 0 D 9 Fe 9 09 Fe 0 Se 9 Au 9 M 9 N 9 M 0 09 10 8 09 9 -0 -1 -0 -1 -0 0 1 l-0 r-0 -0 r-1 0 -0 -0 n- n- n- g- b- b- p- ay ay ar a
Slide 51: Germany – Marlboro Performance
Germany – Marlboro Performance (%) 30 25.3 25 24.2 23.0 21 Share of Market 20 18 16 YAS Smoker Share(a) 15 10 2007 2008 2009 (a) 6mma Source: PMI Market Statistics based on MSI and GCTS 51
Slide 52: Germany – L&M Performance
Germany – L&M Performance (%) 20 YAS Smoker 17 Share(a) 15 13 10 Share of 8 Market 8.3 5 7.0 5.1 0 2007 2007 2008 2008 2009 2009 (a) 6mma Source: PMI Market Statistics based on MSI and GCTS 52
Slide 53: Germany – PMI Fine Cut Market Share
Germany – PMI Fine Cut Market Share (%) 16 3.7 7.9 11.3 13.8 13.3 13.8 Total(a) 14 12 New since Jan 2006 10 4.4 7.3 7.5 8.3 8 6 6.9 6.5 2.4 5.8 5.5 Portfolio 4 at end 5.5 of 2005 3.7 2 0 2005 2005 2006 2006 2007 2007 2008 2008 2009 2009 Q1 2010 2010 (a) 6mma Source: PMI Market Statistics based on MS
Slide 54: Germany – 2010 and Beyond Business Outlook
Germany – 2010 and Beyond Business Outlook ● Ensure a sustainable fiscal and regulatory environment ● Develop our cigarette portfolio to secure future growth: - Reinforce Marlboro’s No. 1 status - Strengthen our position in the growing low-price segment with L&M and Chesterfield ● Further reinforce
Slide 55: Italy – Total Industry Volume
Italy – Total Industry Volume (billion units) Variance vs. PY 94.5 94.0 91.7 (2.4) % TOTAL 92.8 92.0 89.2 (3.1) % Cigarettes 1.7 2.0 2.5 25.0 % Other Tobacco Products(a) 2007 2008 2009 (a) Fine cut converted to cigarettes equivalents based on conversion ratio of 0.75 Source: Logista 55
Slide 56: Italy – Total Industry Cigarette Volume
Italy – Total Industry Cigarette Volume (%) Premium & 39.7 38.9 37.5 Above(a) 12.9 14.6 17.1 Mid(b) 47.4 46.5 45.4 Low(c) 2007 2008 2009 (a) Premium and Above: mainly Marlboro, Merit, Philip Morris, Muratti, Dunhill and Vogue (b) Mid: mainly Chesterfield, Camel, Lucky Strike and Marlboro Gold Touch
Slide 57: Italy – Cigarette Market Shares
Italy – Cigarette Market Shares (%) 60 54.6 54.4 54.1 PMI 26.4 25.5 23.9 BAT 15.6 17.0 18.3 JT 2.8 2.6 2.4 IMT 0 2007 2008 2009 Source: Logista and A. C. Nielsen 57
Slide 58: Italy – Marlboro Market Share
Italy – Marlboro Market Share (%) 30 22.8 Total 22.4 22.6 22.6 Marlboro Marlboro 1.4 Gold Touch 0.9 0.6 Marlboro 0.5 0.5 Compact 0 2007 2008 2009 Q1 2010 Source: Logista 58
Slide 59: Italy – 2010 and Beyond Business Outlook
Italy – 2010 and Beyond Business Outlook ● Advocate for a predictable fiscal and regulatory environment ● Reinforce cigarette portfolio to secure future growth: - Sustain Marlboro’s No. 1 status - Strengthen our position in mid and low-price segments with: • Marlboro Gold Touch • Marlboro Core Flavo
Slide 60: Poland – Total Industry Volume
Poland – Total Industry Volume (billion units) Variance vs. PY 76.2 73.0 69.9 (4.2) % TOTAL 69.9 63.1 61.1 (3.2) % Cigarettes 9.9 8.8 (11.0) % Other Tobacco 6.3 Products(a) 2007 2008 2009 (a) Fine cut converted to cigarettes equivalents based on conversion ratio of 0.75 Source: PMI estimates 60
Slide 61: Poland – Total Industry Cigarette Volume
Poland – Total Industry Cigarette Volume (%) 12.4 11.8 13.0 Premium(a) 29.6 29.9 29.3 Mid(b) 58.0 58.3 57.7 Low(c) 2007 2008 2009 (a) Premium: mainly Marlboro, Vogue, Davidoff, Camelia, R1 and Camel as of 2009 (b) Mid: mainly L&M, West, Golden America and Pall Mall (c) Low: mainly Red & White, Vicer
Slide 62: Poland – Cigarette Market Shares
Poland – Cigarette Market Shares (%) 50 39.0 37.6 36.1 37.2 PMI 30.3 29.7 26.9 26.2 BAT 26.6 24.7 24.4 24.1 IMT 11.7 JT 9.7 7.6 5.9 0 2007 2008 2009 Q1 2010 Note: Current view of historical shares. BAT including ST, IMT including Altadis and JT including Gallaher Source: PMI estimates 62
Slide 63: Poland – Brand Family Market Shares
Poland – Brand Family Market Shares (%) 20 14.8 15.3 15.1 13.7 L&M 9.4 9.2 Marlboro 8.5 8.4 9.2 Red & White 7.4 7.7 7.1 0.3 Chesterfield 0.2 0.2 0.2 0 2007 2008 2009 Q1 2010 Source: PMI estimates 63
Slide 64: Poland – 2010 and Beyond Business Outlook
Poland – 2010 and Beyond Business Outlook ● Leverage EU tax harmonization to advocate for a predictable fiscal environment ● Reinforce cigarette portfolio to increase market leadership: - Sustain leading brand position in all price segments - Leverage new Marlboro architecture - Grow Marlboro and L&
Slide 65: Agenda
Agenda ● EU Region at a glance ● 2010 and beyond: business outlook ● Key 5 EU markets: highlights ● Concluding remarks ● Questions & Answers 65
Slide 66: Conclusion
Conclusion ● Superior brand portfolio with the leading brand - Marlboro - and the fastest growing brand - L&M ● Pricing more than offsets volume / mix variance, despite consumer downtrading due to economic situation ● Sound and predictable fiscal framework ● Superior power of execution driven by eff
Slide 67: Questions & Answers
Investor Day – EU Region Lausanne, June 23, 2010 Questions & Answers
Slide 68: 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 69: 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 70: 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 71: 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 72: 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 73: 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 74: 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 75: 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 76: 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 77: 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 78: 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 79: 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 80: 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 81: 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 82: 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 83: Total Debt to EBITDA and Net Debt to EBITDA Ratios
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 84: Total Debt to EBITDA and Net Debt to EBITDA Ratios
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 85: Reconciliation of Operating Income to Operating Companies Income
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 86: Investor Day – EU Region
Investor Day – EU Region Lausanne, June 23, 2010
Philip Morris International — Investor Day (June 2010) on 6ix