Pt Hanjaya Mandala Sampoerna Tbk · IDX:HMSP

Pt Hanjaya Mandala Sampoerna Tbk — Philip Morris ČR a.s. — Shareholder Meeting (April 2016)

20 slides from Pt Hanjaya Mandala Sampoerna Tbk's shareholder meeting presentation, Apr 29, 2016

  1. 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 29, 2016 András Tövisi Chairman of the Board of Directors

  2. Slide 2: Total Cigarette Market - Czech Republic

    Total Cigarette Market Czech Republic Total cigarette market up by 1.7% reflecting mainly • stronger seasonality • improving economic environment partially offset by • excise tax driven price increases in 2014-15 • growth of lower-taxed fine-cut category Source: Philip Morris ČR a.s. internal estima

  3. Slide 3: Price Increases 2012 – 2015 (CZK/pack)

    Price Increases 2012 – 2015 (CZK/pack) Czech Republic Dec'12 Dec'13 Dec'14 Dec'15 Premium 86 89 91 96 • Excise tax and VAT increase January 1, 2013 Medium 74 77 79 84 • Excise tax increase January 1, 2014 • Excise tax increase December 1, 2014 68 72 74 79 Low 66 70 72 77 Note: Retail prices in CZK/p

  4. Slide 4: PMCR Cigarette Market Share and Shipments

    PMCR Cigarette Market Share and Shipments Czech Republic Market share decline by -1.5pp to 45.9% (Excluding RGD, decline by -1.6pp to 44.8%) • losses on local brands and Red & White • partially offset by increase of L&M, Philip Morris and Chesterfield Domestic cigarette shipments decline by -0.4% (E

  5. Slide 5: Consolidation of brand portfolio

    Consolidation of brand portfolio Czech Republic 2013 2013 2015 Petra morph to L&M Start morph to Chesterfield Red & White morph to Chesterfield • Petra Klasik launched in low- • Start RS endorsed by • Red & White main variants price segment in January ‘13 Chesterfield morphed to Chesterfield in • ot

  6. Slide 6: Fine Cut Tobacco

    Fine Cut Tobacco Czech Republic Note: Fine Cut Tobacco refers to tobacco products such as tobacco for make-your-own cigarettes (0.73 g is equivalent to 1 cigarette) and volume tobacco for make-your-own cigarettes (0.60 g is equivalent to 1 cigarette). Source: Philip Morris ČR a.s. internal estimates

  7. Slide 7: Combined shipments Cigarettes & Other Tobacco Products

    Combined shipments Cigarettes & Other Tobacco Products Czech Republic Domestic shipments up by 2.1% (Excluding RGD, shipments up by 0.5%) mainly driven by: • higher total market of cigarettes • higher fine cut total market • higher fine cut market share partially offset by • lower cigarette market s

  8. Slide 8: Total Cigarette Market - Slovakia

    Total Cigarette Market Slovakia Total cigarette market up by 0.9% reflecting mainly • stronger seasonality • improved macro-economic conditions Source: Philip Morris Slovakia s.r.o. internal estimates © 2016 Philip Morris ČR a.s. 8

  9. Slide 9: Price Increases 2012 – 2015 (EUR/pack)

    Price Increases 2012 – 2015 (EUR/pack) Slovakia Dec '12 Dec '13 Dec '14 Dec '15 Premium 3.40 3.40 3.50 3.50 Super Low 2.80 2.90 2.90 2.90 • Last excise tax increase from October 1, 2012 • Price increases in Q2 2013 and Q3 2014 2.60 2.80 2.90 2.90 2.60 2.70 2.80 2.80 Note: Retail prices in EUR/pack o

  10. Slide 10: Cigarette Market Share and Shipments - Slovakia

    Cigarette Market Share and Shipments Slovakia Market share increase by +1.9pp to 57.0% (Excluding RGD, increase by +1.4pp to 54.5%) • strong performance of Marlboro and L&M Domestic cigarette shipments up by +4.2% (Excluding RGD, shipments up by +3.4%) • higher total cigarette market • higher cigare

  11. Slide 11: Operating Income

    Operating Income Consolidated Financial Results (CZK million) Consolidated profit from operations increased by 13.5% or by 15.7% excluding currency, primarily reflecting: • favorable pricing in the Czech Republic and Slovakia • favorable volume / mix in Slovakia partially offset by: • unfavorable vo

  12. Slide 12: Fiscal Outlook - Czech Republic

    Fiscal Outlook Czech Republic ET Yield FX rate @ Minimum Excise Tax € / '000 Oct 1, 2014 27.502 86.2 for Cigarettes (CZK/’000) € / '000 Oct 1, 2015 27.173 92.7 EU requirement 2,630 2,570 • 90 EUR per 1000 cigarettes 2,520 2,370 2,250 2,180 2,100 2,010 2,010 1,920 1,920 1,640 1,360 1,130 940 2004 200

  13. Slide 13: TPD draft bill – transposition timeline

    TPD draft bill – transposition timeline Czech Republic Parliament Senate Coll. of Laws Coming into force 3 month sell-by-date 90 days after 20.11.2016* 23.03.2016 27.04.2016 20.05.2016* publication in Collection of Laws Manufact. cut off 19.08.2016* Local TPD draft bill includes: • no measures beyon

  14. Slide 14: Fiscal Outlook - Slovakia

    Fiscal Outlook Slovakia Minimum Excise Tax for Cigarettes €90 /’000 (EUR/’000) (EU minimum) • Last excise tax increase in October 2012 • Minimum excise tax reached EUR 91/’000 Source: Act no. 546/2011 Coll. amending Act no. 98/2004 Coll. on the mineral oils tax, as amended and certain other laws., A

  15. Slide 15: TPD bill – Tobacco product directive – timeline

    TPD bill – Tobacco product directive – timeline Slovakia Parliament Coll. of 20.05.2016 31.08.2016 Laws entry into effect sell-by-date cigarettes Manufact. cut off 25.11.2015 19.02.2016 19.05.2016 20.05.2017 sell-by-date Local TPD draft bill includes: other tobacco products • Same requirements as in

  16. Slide 16: New PMI EU operating model

    New PMI EU operating model Transform the way we work to master our long-term business challenges through: Strengthening effectiveness, while … leveraging efficiencies where appropriate ● Leverage global brands platform addressing common challenges across markets ● Align and simplify activities, key

  17. Slide 17: Assets & Liabilities

    Assets & Liabilities Consolidated Financial Results (CZK million) YTD Dec YTD Dec Assets 2015 2014 Incr./(Decr.) Cash & Equivalents 7,470 4,524 2,946 Diff. stock build-up pattern Inventories 423 328 95 Receivables 399 2,716 (2,317) Inventories sold to PMIM Other Non-Financial Assets 2,847 1,638 1,20

  18. Slide 18: Cash and Cash Equivalents

    Cash and Cash Equivalents Consolidated Financial Results (CZK million) Source: Philip Morris ČR a.s. financials © 2016 Philip Morris ČR a.s. 18

  19. Slide 19: Dividend proposal

    Dividend proposal (CZK / share) 2011 2012 2013 2014 2015 Earnings Current Year 926 885 819 825 925 Retained Earnings Prior Year -6 15 1 55 -5 Dividend Paid / Proposed 920 900 820 880 920 Reserve Fund Cancellation 60 Total Payout Proposed 920 900 880 880 920 Source: Philip Morris ČR a.s. financials ©

  20. Slide 20: Thank you

    Thank you © 2016 Philip Morris ČR a.s. 20

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