Philip Morris International Inc · NYSE:PM
Philip Morris International — Consumer Analyst Group of New York (CAGNY) Conference 2013
79 slides from Philip Morris International's conference presentation, Feb 20, 2013
Slide 1: Consumer Analyst Group of New York (CAGNY) Conference
Consumer Analyst Group of New York (CAGNY) Conference February 20, 2013 Jacek Olczak Chief Financial Officer Philip Morris International
Slide 2: Forward-Looking and Cautionary Statements
Forward-Looking and Cautionary Statements ● This presentation and related discussion contain forward-looking statements. Achievement of projected results is subject to risks, uncertainties and inaccurate assumptions, and PMI is identifying important factors that, individually or in the aggregate, co
Slide 3: Agenda
Agenda ● Strong performance in 2012 ● Tobacco industry remains attractive ● PMI should continue to outperform ● Incremental growth opportunities ● Strong emphasis on returning cash to our shareholders 3
Slide 4: 2012: Another Solid Year for PMI
2012: Another Solid Year for PMI ● Strong organic volume growth ● Key brands performed well ● Pricing power remained strong ● Moderate cost increases largely offset by productivity gains ● Continued investments in our business ● EPS growth at top end of target range ● $12 billion returned to our sha
Slide 5: 2012: Strong Organic Cigarette Volume Growth
2012: Strong Organic Cigarette Volume Growth (units billion) 930 927 1.3% 915 Japan 2.0% 6 Hurdle 900 2011 2012 Source: PMI Financials 5
Slide 6: 61% of PMI Volume from Non-OECD Markets
61% of PMI Volume from Non-OECD Markets OECD 61% Non-OECD 2012 Volume: 927.0 billion units Source: PMI Financials 6
Slide 7: EEMA and Asia: the Key Drivers of Organic Volume Growth
EEMA and Asia: the Key Drivers of Organic Volume Growth PMI Organic Cigarette Volume Growth (2012 vs. 2011) (%) 7 4.6 4.2 1.3 LA&C EU 0 EEMA Asia Total PMI (1.6) (7) (6.4) Source: PMI Financials 7
Slide 8: Strong Regional Market Share Performances
Strong Regional Market Share Performances PMI Market Shares 2011 2012 Variance Asia(a) 26.5% 27.3% 0.8)pp EEMA 23.7 24.6 0.9 EU 38.2 38.1 (0.1) LA&C 35.7 36.5 0.8 Total(a)(b) 28.3 28.8 0.5 (a) Excluding China (b) Also excluding the USA Source: PMI estimates 8
Slide 9: Marlboro: Market Share Growth in All Four Regions
Marlboro: Market Share Growth in All Four Regions Market Shares 2009 2010 2011 2012 Asia(a) 5.9% 6.2% 6.5% 6.6% EEMA 6.4 6.5 6.9 7.0 EU 18.4 18.2 18.0 18.3 LA&C 13.8 14.2 13.9 14.5 Total(a)(b) 9.0 9.1 9.2 9.3 (a) Excluding China (b) Also excluding the USA Source: PMI estimates 9
Slide 10: Favorable Pricing Environment
Favorable Pricing Environment Pricing Variance ($ million) Average 1,984 1,894 2008-2011 1,759 1,662 1,691 1,223 2008 2009 2010 2011 2012 Source: PMI Financials 10
Slide 11: Improved Adjusted OCI Margins
Improved Adjusted OCI Margins Adjusted OCI Margins 2007 2008 2009 2010 2011 2012 Asia 32.4% 33.5% 37.3% 38.7% 45.3% 46.8% EEMA 38.5 41.6 39.2 42.5 41.3 44.8 EU 49.0 49.6 50.2 49.2 50.0 49.2 LA&C 26.9 27.8 30.0 31.2 30.7 32.4 Total 40.1 41.4 41.7 42.3 44.1 45.4 Note: Margins are calculated as adjuste
Slide 12: Strong Financial Results in 2012
Strong Financial Results in 2012 Growth (2012 vs. 2011) (%) 12 11.7 8.1 5.6 0 Net Adjusted Adjusted Revenues (a) OCI (a) Diluted EPS (b) (a) Excluding currency and acquisitions (b) Excluding currency Source: PMI Financials 12
Slide 13: Tobacco Industry: An Attractive Sector
Tobacco Industry: An Attractive Sector ● Favorable pricing environment: - Governments look to increase their revenues and lower tobacco consumption based on higher cigarette prices - Elasticity of demand is relatively low 13
Slide 14: Tobacco Industry: An Attractive Sector
Tobacco Industry: An Attractive Sector ● Favorable pricing environment: - Governments look to increase their revenues and lower tobacco consumption based on higher cigarette prices - Elasticity of demand is relatively low ● Rational excise tax environment: - Governments recognize revenue predictabil
Slide 15: Excise Taxation: Improved Structures in the EU
Excise Taxation: Improved Structures in the EU Specific-to-Total Excise Tax Ratio on Cigarettes (weighted average for the EU) 35.1% 32.4% 30.2% January December December 2011 2011 2012 Source: PMI estimates based on national data for reference Weighted Average Price (WAP) for cigarettes and tax rate
Slide 16: Excise Taxation: Enhanced Predictability
Excise Taxation: Enhanced Predictability Multi-Year Programs CPI Adjustments Brazil Australia Czech Republic Colombia Dominican Republic New Zealand Germany Sweden Kazakhstan UK Philippines Romania Russia Serbia Note: CPI stands for consumer price index 16
Slide 17: Tobacco Industry: An Attractive Sector
Tobacco Industry: An Attractive Sector ● Favorable pricing environment: - Governments look to increase their revenues and lower tobacco consumption based on higher cigarette prices - Elasticity of demand is relatively low ● Rational excise tax environment: - Governments recognize revenue predictabil
Slide 18: Tobacco Industry: An Attractive Sector
Tobacco Industry: An Attractive Sector ● Favorable pricing environment: - Governments look to increase their revenues and lower tobacco consumption based on higher cigarette prices - Elasticity of demand is relatively low ● Rational excise tax environment: - Governments recognize revenue predictabil
Slide 19: Plain Packaging: Summary
Plain Packaging: Summary ● 6 of 7 High Court judges in Australia recognized that plain packaging law deprived tobacco companies of valuable intellectual properties ● Plain packaging is not mandated in the proposed EU Tobacco Products Directive ("TPD") 19
Slide 20: EU: TPD Proposal
EU: TPD Proposal ● Proposal from EU Commission ● Subject to review prior to adoption by the Council of Ministers and the European Parliament ● Implementation not expected until 2015/2016 ● As proposed, contains a number of measures that we believe have no credible scientific basis: - Ban on menthol
Slide 21: PMI Should Continue to Outperform
PMI Should Continue to Outperform ● Overall market leadership and broad global footprint ● Superior brand portfolio ● Favorable market trends ● Higher conversion of revenues into free cash flow 21
Slide 22: Global Share Growth Momentum Accelerating
Global Share Growth Momentum Accelerating PMI Global Market Share Variance (2012 vs. PY)(a) (pp) 1.0 1.0 0.9 0.8 0.5 0.00 12 mm 6 mm 3 mm December 2012 (a) Excluding China and the USA Source: PMI estimates 22
Slide 23: Strong Regional PMI Market Share Performances
Strong Regional PMI Market Share Performances EU Region #1 position LA&C Region #2 position (%) (%) 38.5 38.2 38.1 36.5 36.1 35.7 2010 2011 2012 2010 2011 2012 Asia Region(a) #1 position EEMA Region #1 position (%) (%) 27.3 26.5 25.3 24.6 23.5 23.7 2010 2011 2012 2010 2011 2012 (a) Excluding China N
Slide 24: EU: PMI Brands Performing Very Well
EU: PMI Brands Performing Very Well EU Region Market Shares (%) Marlboro L&M Chesterfield Philip Morris +0.3pp ─ pp +0.4pp +0.1pp 18.3 18.0 6.6 6.6 3.7 3.3 2.0 2.1 2011 2012 2011 2012 2011 2012 2011 2012 Ranking #1 #1 #2 #2 #6 #6 #12 #11 Source: PMI estimates 24
Slide 25: EU: Unemployment Key Driver of Cigarette Industry Volume Decline
EU: Unemployment Key Driver of Cigarette Industry Volume Decline Unemployment Rates (%) Cigarette Industry Volume Decline (%) December 2011 December 2012 (2012 vs. 2011) 26.1 (1.2) Germany 23.2 (4.9) France (6.1) Poland 11.2 EU 10.6 10.6 10.0 10.7 (6.3) 9.9 9.9 9.5 Region 5.6 5.3 (7.9) Italy (11.7)
Slide 26: Southern Europe: Total Smoking Incidence and Daily Consumption Essentially Stable
Southern Europe: Total Smoking Incidence and Daily Consumption Essentially Stable Total Adult Smoking Incidence (%)(a) Adult Cigarette Daily Consumption 2011 2012 2011 2012 36 35 21 21 30 31 25 26 26 27 16 16 16 15 13 13 Greece Italy Portugal Spain Greece Italy Portugal Spain (a) Cigarette, OTP and
Slide 27: EU: PMI Strengthening Position in Growing Fine Cut Category
EU: PMI Strengthening Position in Growing Fine Cut Category Fine Cut Volume Growth (2012 vs. 2011) +18% +7% Total Industry PMI Source: PMI estimates (in-market sales) 27
Slide 28: EU: Preconditions for Improvement in Cigarette Industry Volume Trends
EU: Preconditions for Improvement in Cigarette Industry Volume Trends ● Lower unemployment levels ● Reduction in tax differential between cigarettes and fine cut ● Stronger efforts to curtail illicit trade 28
Slide 29: Italy: Marlboro Gained Market Share in 2012
Italy: Marlboro Gained Market Share in 2012 ● Cigarette industry volume PMI Market Shares (%) Total PMI declined by 7.9% in 2012 53.1 53.0 Diana Other International ● Total tobacco consumption 13.2 12.4 Chesterfield Marlboro estimated to have decreased by some 1% 13.8 13.9 ● PMI business fundamental
Slide 30: France: Significant Industry Volume Decline
France: Significant Industry Volume Decline ● Cigarette industry volume PMI Market Shares (%) declined by 4.9% in 2012 and by 7.2% in Q4, 2012 40.4 40.2 40.1 Cigarettes ● Higher level of illicit trade and border sales, and some down-trading to fine cut 26.1 25.0 ● Total tobacco consumption 22.7 Fine
Slide 31: Germany: Strong Position in Resilient Market
Germany: Strong Position in Resilient Market ● Cigarette industry volume down by 1.2% and fine cut up by 2.2% in 2012 ● Competitor trade inventories increased in December 2012 ● Underlying decline in PMI Market Shares (%) cigarette volume estimated Total PMI 35.9 35.8 at around 2% Other L&M Marlboro
Slide 32: Asia: Tremendous Growth
Asia: Tremendous Growth Total PMI Volume (units billion) CAGR: 9.1% 327 Other Indonesia 22% 211 33% 17% Japan 28% Philippines 2007 2012 2012 Total PMI Volume: 327 billion units Source: PMI Financials 32
Slide 33: Indonesia: Expanding Share in Growing Market
Indonesia: Expanding Share in Growing Market ● Cigarette industry volume PMI Market Share (%) grew by 8.2% in 2012 35.6 ● Going forward, we expect 5-6% growth 32.8 ● PMI volume surged by 30.2 30.9 17.5% in 2012 ● PMI share growth driven by: - Consumer uptrading - Best brand portfolio - Superior nati
Slide 34: Philippines: Disruptive Excise Tax Increase
Philippines: Disruptive Excise Tax Increase ● New tax law as of January 2013: Excise Tax (PHP/pack) Net Share of Tax Retail Price Total Market Old Tier (PHP/pack) 2012 Law New Law 2012 2013 2014 2015 2016 2017 2018 onwards 1 > 11.50 35% 12 25 27 28 29 30 +4% annually 2 ≤ 11.50 65% 2.72 12 17 21 25 ●
Slide 35: Japan: Solid Performance
Japan: Solid Performance ● Total industry volume up 0.7% in 2012 to 197 billion units ● Underlying decline trend of around 1% ● PMI share reached 27.7%: PMI Market Share (%) 30.7 - Strong Marlboro performance 27.7 - Lark remains under pressure 24.0 24.4 (biggest gainer in 2011) ● No excise tax incre
Slide 36: EEMA: Strong Volume Growth in 2012
EEMA: Strong Volume Growth in 2012 Total PMI Volume (units billion) +4.7% 304 Russia 290 Other 33% 31% 16% 20% Turkey Middle East & 2011 2012 North Africa(a) 2012 Total PMI Volume: (a) Including “Levant” area 304 billion units Source: PMI Financials 36
Slide 37: Russia: Market Share Gains As Investments Continue
Russia: Market Share Gains As Investments Continue ● Cigarette industry volume PMI Market Share (%) declined by 1.3% to 26.3 370 billion units in 2012 25.8 ● PMI market share growth 25.5 driven by Parliament, L&M, Bond Street and Next ● Excise tax increases for 2013-2015 in line with previous plan ●
Slide 38: Turkey: Record Market Share and Improved Mix
Turkey: Record Market Share and Improved Mix ● Total industry volume grew PMI Market Share (%) 45.7 by 8.8% in 2012 to 42.1 44.8 99 billion units ● PMI share increased and 16.6 17.4 18.2 Premium mix improved ● PMI increased retail prices 6.3 6.7 Mid 5.8 by TRL 1.00 per pack following January 2013 ta
Slide 39: North Africa: Strong Growth Driven by Marlboro
North Africa: Strong Growth Driven by Marlboro PMI Volume (units billion) ● Cigarette industry volume +11.9% 31.5 estimated at 138 billion +8.2% 28.1 units in 2012 26.0 ● Business normalized following “Arab Spring” disruptions though 2010 2011 2012 tensions remain ● PMI growing behind Marlboro with
Slide 40: LA&C: PMI Growing Across Wide Range of Markets
LA&C: PMI Growing Across Wide Range of Markets Other Argentina 33% 42% PMI Share Variance (2012 vs. 2011) (pp) 25% 2 1.8 1.2 0.9 1.0 Mexico 2012 Total PMI Volume 99 billion units 0 Note: Arg. is Argentina and Col. is Colombia Arg. Mexico Brazil Col. Source: PMI Financials and PMI estimates 40
Slide 41: PMI: Superior Brand Portfolio
PMI: Superior Brand Portfolio International Local Heritage Premium & Above Mid-Price Low-Price Note: Pack designs are for illustrative purposes only 41
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Slide 43: Parliament: 10.1% Volume Growth in 2012
Parliament: 10.1% Volume Growth in 2012 Market Shares 2011 2012 Other (%) 10 9.0 Russia Kaz. 8.1 13% 6.9 6.7 Ukr. 5% 28% 6.6 7% 5.3 10% Japan 23% 3.2 3.2 14% 2.8 2.9 2.4 2.2 Korea Turkey 0 2012 Volume: Turkey Kaz. Korea Ukr. Rus. Japan 43.4 billion units Note: Kaz. is Kazakhstan, Ukr. is Ukraine and
Slide 44: Rauchen
Rauchen kann tédlich sein Die Menge an Teer, Nikotin und Kohlenmonoxid, die Sie inhalieren, variiert, je nachdem, wie Sie Ihre Zigarette rauchen Rauchen kann todlich sein. Der Rauch einer Zigarette dieser Marke enthalt 10 mg Teer, 0,8 mg Nikotin und 10 mg Kohlenmonoxid. (Durchschnittswerte nach ISO)
Slide 45: Premium Segment: Growing in Emerging Markets
Premium Segment: Growing in Emerging Markets Non-OECD Premium SoM (%)(c) Premium SoM (%)(a) 2011 2012 Variance Argentina 37.4% 38.5% 1.1 pp Brazil 24.2 25.6 1.4 19 Egypt 8.6 8.6 ─ 17 Indonesia(b) 25.7 27.6 1.9 Kazakhstan 28.7 29.3 0.6 Mexico 65.7 66.6 0.9 Russia 13.9 13.9 ─ Saudi Arabia 42.4 41.9 (0
Slide 46: Premium Segment: PMI Over-Indexed in Emerging Markets
Premium Segment: PMI Over-Indexed in Emerging Markets PMI Share of Premium (2012)(a) (%) 100 94 96 93 90 74 62 60 54 53 44 33 36 0 Arg. Brazil Egypt Indon.(b) Kaz. Mex. Rus. Saudi Serbia Turkey Ukr. Vietnam (a) Includes above premium (b) Data currently under review following expansion of Nielsen cov
Slide 47: Premium Segment: Stability in the EU Region
Premium Segment: Stability in the EU Region EU Region Premium SoM (%) Premium SoM (%)(a) 2011 2012 Variance Belgium 37.7% 37.9% 0.2 pp 33 32 Czech Republic 13.1 14.3 1.2 France 47.9 46.6 (1.3) Germany 41.9 43.1 1.2 Greece 37.9 39.4 1.5 Hungary 15.4 20.8 5.4 Italy 35.5 35.4 (0.1) Netherlands 47.8 46.
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Slide 49: L&M: Strong Growth in EEMA Region
L&M: Strong Growth in EEMA Region Volume Growth (2012 vs. 2011) +30% Turkey 20% +20% Other 45% 19% Russia +9% 16% Egypt Egypt Russia Turkey 2012 EEMA L&M Volume: 48 billion units Source: PMI Financials 49
Slide 50: Additional Growth Opportunities for PMI
Additional Growth Opportunities for PMI ● Geographic expansion ● Reduction in illicit trade ● Next Generation Products ("NGPs") 50
Slide 51: Vietnam: Partnership With Vinataba Progressing Well
Vietnam: Partnership With Vinataba Progressing Well Premium SoM in Six Focus Cities (%) ● Industry volume has 13 grown by 3% a year since 8 6 2009 to 83 billion units in 2012 2010 2011 2012 ● Attractive market: PMI Share of Premium in Six Focus Cities (%) - Large and growing adult 45 37 population 1
Slide 52: Illicit Trade: Both an Opportunity and a Risk
Illicit Trade: Both an Opportunity and a Risk ● Estimated volume worldwide: 600 billion units ● Growing illicit trade category is “illicit whites” Note: “Illicit whites” are branded cigarettes manufactured purely for export and resale without paying any taxes Source: PMI estimates 52
Slide 53: Illicit Trade: Multi-Faceted Strategy
Illicit Trade: Multi-Faceted Strategy ● Comprehensive approach by private and public sectors is essential ● Need to tackle supply and demand ● PMI agreements with OLAF and INTERPOL ● WHO FCTC protocol on illicit trade ● Educational programs Note: OLAF refers to the European Anti-Fraud Office. INTERP
Slide 54: NGPs: Steady Progress
NGPs: Steady Progress ● Clinical studies ● Perception and behavioral research ● Establishment of production facilities ● Addressing the regulatory environment Platform 1 Platform 2 Platform 3 54
Slide 55: Free Cash Flow: Outlook
Free Cash Flow: Outlook ● Anticipate strong increase in currency-neutral free cash flow in 2013 ● Project free cash flow growth rate to exceed that of net earnings in 2013 ● Capex will increase over next few years: - Additional capacity in Indonesia - NGP manufacturing ● Forestalling-related invento
Slide 56: Debt Financing at Increasingly Attractive Terms
Debt Financing at Increasingly Attractive Terms Weighted-Average Coupon Weighted-Average Time to Maturity of Total Bond Portfolio (%) of Long-Term Debt (years) 5.4 10.1 4.8 4.2 8.2 7.0 2010 2011 2012 2010 2011 2012 Note: Weighted-average coupon of total bond portfolio is calculated based on historic
Slide 57: Superior Dividend Growth and Attractive Yield
Superior Dividend Growth and Attractive Yield Dividend Growth Since 2008 Dividend Yield as of February 15, 2013 McDonald's 105.3% Vodafone 5.8% PMI 84.8% GlaxoSmithKline 5.0% Imperial Tobacco 59.5% Imperial Tobacco 4.6% BAT 56.0% BAT 3.9% Roche 47.0% PMI 3.8% Nestlé 46.4% Novartis 3.6% Heineken 43.5
Slide 58: Substantial Share Repurchase Programs
Substantial Share Repurchase Programs 27.9 489.0 23.2 74.9 3.6 2012 6.5 80.5 3.8 2011 5.4 97.1 4.6 2010 5.0 129.7 6.1 2009 5.5 2008 5.4 106.8 5.1 Cumulative Amount Shares Shares Outstanding at Spin ($ billion) (million) (%) Note: The outstanding PMI shares at the time of the spin were 2,109 million
Slide 59: PMI: Delivering Superior Total Shareholder Return
PMI: Delivering Superior Total Shareholder Return March 28, 2008 – February 15, 2013 PMI 118.9% Tobacco 65.3% Peer Group Compensation 45.6% Survey Group(a) S&P 500 29.0% FTSE 100 4.0% (a) The compensation survey group’s total shareholder return (TSR) weights Mondelēz’s TSR at 65% of historical Kraft
Slide 60: PMI: Why We Are An Attractive Investment
PMI: Why We Are An Attractive Investment ● Tobacco sector has attractive business fundamentals ● PMI outperformance based on: - Volume growth and share momentum - World-class portfolio of brands - Truly global footprint with leading position in emerging markets - Innovation - Superior conversion of
Slide 61: We Have Consistently Delivered Targeted EPS Growth
We Have Consistently Delivered Targeted EPS Growth PMI Adjusted Diluted EPS Growth, excluding Currency (%) 22 22 21.2 15.4 14.0 12.9 11.7 Mid to Long-Term 12 Currency-Neutral 10 Annual Growth Target 00 2008 2009 2010 2011 2012 Source: PMI Financials 61
Slide 62: - PARLIAMENT
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Slide 63: Consumer Analyst Group of New York (CAGNY) Conference
Consumer Analyst Group of New York (CAGNY) Conference February 20, 2013 Jacek Olczak Chief Financial Officer Philip Morris International
Slide 64: Glossary and Reconciliation of Non-GAAP Measures
Glossary and Reconciliation of Non-GAAP Measures
Slide 65: Glossary
Glossary ● Unless otherwise stated, results are compared with those of the same period in the preceding year ● PMI stands for Philip Morris International Inc. and its subsidiaries ● PMI volumes refer to PMI cigarette shipment data, unless otherwise stated ● References to total international cigarett
Slide 66: Glossary
Glossary ● The Japan hurdle refers to the 6.3 billion units of additional volume shipped in the second quarter of 2011 as a result of the disruption of our principal competitor's supply chain following the natural disaster in March 2011 ● OECD stands for Organisation for Economic Co-operation and De
Slide 67: Glossary
Glossary ● Illicit trade refers to domestic non-tax paid products ● The Middle East includes Azerbaijan, Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates (UAE) and Yemen ● North Africa includes Algeria, Egypt, Libya, Morocco and Tunisia ● Levant area includes Jordan, Leba
Slide 68: PMI Peer Groups
PMI Peer Groups Compensation Survey Group Tobacco Peer Group - BAT - Altria - Bayer - BAT - Coca-Cola - Imperial Tobacco - Diageo - Japan Tobacco - GlaxoSmithKline - Lorillard - Heineken - Reynolds American - Imperial Tobacco - Johnson & Johnson - Kraft(a) - McDonald’s - Mondelēz International(b) -
Slide 69: Reconciliation of Non-GAAP Measures
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Calculation of Adjusted Operating Companies Income Margins ($ in millions) (Unaudited) For the Year Ended December 31, 2007 Reported Adjusted Reported Net Adjusted Operating Less Asset Operating Less Revenues Opera
Slide 70: Reconciliation of Non-GAAP Measures
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Calculation of Adjusted Operating Companies Income Margins ($ in millions) (Unaudited) For the Year Ended December 31, 2009 Reported Less Asset Adjusted Reported Net Adjusted Operating Impairment, Operating Less Re
Slide 71: Reconciliation of Non-GAAP Measures
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Calculation of Adjusted Operating Companies Income Margins ($ in millions) (Unaudited) For the Year Ended December 31, 2011 Reported Adjusted Reported Net Adjusted Operating Less Asset Operating Less Revenues Opera
Slide 72: 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 Years Ended December 31, ($ in millions) (Unaudited) % Change in Reported Net Revenues 2012 2011 excluding Excise Taxes Reported Net Reported Net Reve
Slide 73: 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 & Reconciliation of Adjusted Operating Companies Income Margin, excluding Currency and Acquisitions For the Years Ended D
Slide 74: 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) 2012 2011 % Change Reported Diluted EPS $ 5.17 $ 4.85 6.6% Ad
Slide 75: 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) 2011 2010 % Change Reported Diluted EPS $ 4.85 $ 3.92 23.7% A
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) 2010 2009 % Change Reported Diluted EPS $ 3.92 $ 3.24 21.0% A
Slide 77: 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 78: 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 & Adjustments for the Impact of Currency and 2007 Pro Forma For the Years Ended December 31, (Unaudited) % Change on Diluted 2008 2007 Earnings Per Sha
Slide 79: Consumer Analyst Group of New York (CAGNY) Conference
Consumer Analyst Group of New York (CAGNY) Conference February 20, 2013 Jacek Olczak Chief Financial Officer Philip Morris International
Philip Morris International — Consumer Analyst Group of New York (CAGNY) Conference 2013 on 6ix