Philip Morris International Inc · NYSE:PM
Philip Morris International — Philip Morris ČR a.s. — Shareholder Meeting (April 2010)
14 slides from Philip Morris International's shareholder meeting presentation, Apr 30, 2010
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 30, 2010 © 2010 Philip Morris ČR a.s.
Slide 2: Business Overview
Business Overview Consolidated Financial Results Market Share in Czech Rep 56.0% 55.5% Profit from Operations, CZK bio 3.21 % 38 2008 2009 + 2.33 Market Share in Slovakia 51.3% 51.2% 2008 2009 2008 2009 Source: Philip Morris ČR a.s. Financials, ACNielsen © 2010 Philip Morris ČR a.s. 2
Slide 3: Volume Overview
Volume Overview (adjusted for estimated trade inventory distortions) Czech Republic Cigarette Market, Bio Shipments, Bio 23.8 23.0 21.7 12.5 11.5 10.9 7.0 * 2.0 * 2007 2008 2009 2007 2008 2009 * Estimated trade inventory distortions prior to January 1, 2008 excise tax increase Source: Philip Morris
Slide 4: Market Share
Market Share Czech Republic Decline in 2008 vs. 2007 due to: Market Share • excise tax-driven price increases • ineffective forestalling regulation 60.8% 56.0% 55.5% Stable market share 2009 vs. 2008 due to new marketing initiatives 2007 2008 2009 Source: ACNielsen © 2010 Philip Morris ČR a.s. 4
Slide 5: Marketing Initiatives
Marketing Initiatives Czech Republic in 2009 Low Mid Premium Morphing of Clea into Philip Morris L&M LINK launch New Marlboro © 2010 Philip Morris ČR a.s. 5
Slide 6: Excise Tax – Retail Price Increases 2009
Excise Tax – Retail Price Increases 2009 Czech Republic First year since 2004 without excise tax Q1 Q3 increase Premium - - Minimum excise tax development Mid +1 +1 Low +1 +1 '04 '05 '06 '07 '08 '09 '10 © 2010 Philip Morris ČR a.s. 6
Slide 7: Retail Price Gaps
Retail Price Gaps December 2009 PM BAT IT JTI Premium 82 CZK 78 CZK 84 CZK 75 CZK 22 CZK Mid 37 % 66 CZK 66 CZK 66 CZK 65 CZK Low 60 CZK 60 CZK 58 CZK 57 CZK © 2010 Philip Morris ČR a.s. 7
Slide 8: Slovakia
Slovakia Business Overview Cigarette Market, Bio Shipments, Bio 8.0 7.7 4.1 3.9 2008 2009 2008 2009 Market Share 51.3% 51.2% Stabilization of market share in 2009 due to performance of L&M that increased market share by 6.7pp compensating market share losses incurred by local heritage brands. 2008 2
Slide 9: Exports
Exports Consolidated Financial Results Revenues, CZK bio Shipments, Bio 14.4 13.8 3.74 3.71 2008 2009 2008 2009 2009 factory investments in Kutná Hora: > CZK 0.6 bio Number of employees at the end of 2009: 1 058 Source: Philip Morris CR a.s. Financials © 2010 Philip Morris ČR a.s. 9
Slide 10: Revenues, net of excise tax and VAT
Revenues, net of excise tax and VAT Consolidated Financial Results (CZK bio) 0.7 (0.2) (0.2) 11.7 1.3 0.4 9.7 2008 Currency Price (CR) Vol / M ix (CR) Slovakia Exports 2009 Czech Rep. Real growth of CZK 1.5 bio (+15.9%) driven by favourable volume and pricing in the Czech Republic including a tax ab
Slide 11: Profit from Operations
Profit from Operations Consolidated Financial Results (CZK bio) 0.4 (0.2) (0.2) 1.3 (0.5) 3.21 2.33 0.1 2008 Currency Price (CR) Vol / Mix (CR) Slovakia Exports Costs 2009 Czech Rep. + 38 % Source: Philip Morris CR a.s. Financials © 2010 Philip Morris ČR a.s. 11
Slide 12: Margin Overview
Margin Overview Management profit from operations 50% 45% 44% 2008 2009 40% 40% 34% 35% 30% 30% 30% 26% 25% 20% 15% 10% 8% 8% 5% 0% Czech Republic Slovakia Export Total Czech Rep.: Increase due to high tax absorption costs in 2008 and 2009 pricing Slovakia: Unfavorable mix and partial tax absorption
Slide 13: Cash and cash equivalents
Cash and cash equivalents Consolidated Financial Results (CZK bio) 1.5 0.1 6.0 3.8 3.2 (0.7) (1.5) (0.3) 2008 Profit before Taxes Dividends Finished Finished Other 2009 Tax goods & goods & Excise tax Excise tax (Czech Rep.) (Slovakia) Czech Rep.: High 2008 year-end financing requirements in anticipa
Slide 14: Retail Prices Outlook 2010
Retail Prices Outlook 2010 Czech Republic VAT increase January 1, 2010 Excise Tax increase February 1, 2010 Dec '09 April '10 Premium 82 82 Mid 66 69 Low 60 63 © 2010 Philip Morris ČR a.s. 14
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