Philip Morris Cr As · PSECZ:TABAK

Philip Morris Cr As — Shareholder Meeting (April 2011)

19 slides from Philip Morris Cr As's shareholder meeting presentation, Apr 29, 2011

  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, 2011 © 2011 Philip Morris ČR a.s.

  2. Slide 2: Dividend Proposal

    Dividend Proposal 1 260 CZK / share 884 CZK / share - 2010 net income payout + 376 CZK / share - prior years accumulated retained earnings payout Source: Philip Morris ČR a.s. Financials © 2011 Philip Morris ČR a.s. 2

  3. Slide 3: Cigarette Market Overview

    Cigarette Market Overview * Czech Republic Cigarette Market, Bio bio 23.0 21.7 RYO – increase in 21.1 consumption of over 20% 7.0 * Illicit trade Down-trading to cheaper cigarettes 2008 2009 2010 * Estimated trade inventory distortions prior to January 1, 2008 excise tax increase Source: Philip Morr

  4. Slide 4: Volume and Share Performance

    Volume and Share Performance Czech Republic Shipments, bio Market Share 55.5% 54.0% 11.5 10.9 10.1 2.0 * 2008 2009 2010 2009 2010 Decline of local heritage brands (Start, Petra) partially offset by the strong performance of L&M and resilience of Marlboro * Estimated trade inventory distortions prior

  5. Slide 5: Tax – Price Increases 2010

    Tax – Price Increases 2010 Czech Republic Q2 Premium - VAT increase January 1, 2010 Mid + 3 CZK / pack Excise Tax increase February 1, 2010 Low + 3 CZK / pack © 2011 Philip Morris ČR a.s. 5

  6. Slide 6: Marlboro Architecture and Innovation

    Marlboro Architecture and Innovation Czech Republic Marlboro Red pack upgrade (Q1) Marlboro Flavor Plus launch (Q3) © 2011 Philip Morris ČR a.s. 6

  7. Slide 7: L&M – Now the Fourth Best-selling Brand

    L&M – Now the Fourth Best-selling Brand Czech Republic L&M pack upgrade (Q3) © 2011 Philip Morris ČR a.s. 7

  8. Slide 8: Key Initiatives on Value Brands

    Key Initiatives on Value Brands Czech Republic Morphing of Next into Philip Morris © 2011 Philip Morris ČR a.s. 8

  9. Slide 9: Slovakia Business Overview

    Slovakia Business Overview Cigarette Market, bio Shipments, bio 7.7 7.5 3.9 3.8 2009 2010 2009 2010 Market Share 51.2% 50.6% 2009 2010 Source: Philip Morris ČR a.s. Financials and estimates, ACNielsen © 2011 Philip Morris ČR a.s. 9

  10. Slide 10: Exports

    Exports Consolidated Financial Results Revenues, CZK bio Shipments, bio 13.8 13.9 3.85 3.74 2009 2010 2009 2010 2010 factory investments in Kutná Hora: > CZK 0.6 bio Number of employees at the end of 2010: 1 094 (2009: 1 058) Source: Philip Morris ČR a.s. Financials © 2011 Philip Morris ČR a.s. 10

  11. Slide 11: Business Overview – Consolidated Financial Results

    Business Overview Consolidated Financial Results Net revenues, CZK bio Profit from Operations, CZK bio -2.5% 3.21 -7.2% 11.69 11.40 2.98 2009 2010 2009 2010 Source: Philip Morris ČR a.s. Financials © 2011 Philip Morris ČR a.s. 11

  12. Slide 12: Revenues, Net of Excise Tax and VAT

    Revenues, Net of Excise Tax and VAT Consolidated Financial Results (CZK bio) 11.7 (0.3) 0.1 (0.4) (0.0) 11.4 0.3 0.0 2009 Currency Price Vol / Mix Slovakia Exports Other 2010 Czech Republic Excluding unfavorable currency: decline of CZK 23 mio (-0.2%) mainly due to unfavourable volume in CR and SR,

  13. Slide 13: Profit from Operations

    Profit from Operations Consolidated Financial Results (CZK bio) 3.2 (0.0) 0.1 (0.4) 0.1 (0.0) 0.0 3.0 2009 Currency Price Vol / Mix Slovakia Exports Costs 2010 Czech Republic Excluding unfavorable currency: decrease of CZK 176 mio (-5.5%) primarily due to unfavorable volume in CR, partially offset b

  14. Slide 14: Cash and Cash Equivalents

    Cash and Cash Equivalents Consolidated Financial Results (CZK bio) 3.0 (0.5) (2.1) 0.2 (0.1) 7.1 0.7 6.0 Cash at Profit before tax Taxes Dividends Change in Change in Other Cash at Dec 31, 2009 working capital working capital Dec 31, 2010 CR Slovakia Source: Philip Morris ČR a.s. Financials © 2011 P

  15. Slide 15: 2011 Outlook

    2011 Outlook Czech Republic December '10 April '11 Cigarette Market, bio Premium 82 84 CZK / pack 4.8 4.7 Mid 69 72 CZK / pack Low 63 65 CZK / pack 2010 March YTD 2011 March YTD Source: Philip Morris ČR a.s. Financials and estimates © 2011 Philip Morris ČR a.s. 15

  16. Slide 16: Red & White "Big Packs"

    Red & White "Big Packs" Czech Republic Red & White 20’s 65 CZK / 20’s Red & White 24’s 70 CZK / 24’s = 10% discount © 2011 Philip Morris ČR a.s. 16

  17. Slide 17: Marlboro and L&M New Launch

    Marlboro and L&M New Launch Czech Republic Marlboro Core Flavor Marlboro Gold Touch L&M Soft Price: 77 CZK / pack Price: 77 CZK / pack Price: 68 CZK / pack Price: 68 CZK / pack Tar: 9 mg / cig. Tar: 6 mg / cig. Tar: 10 mg / cig. Tar: 8 mg / cig. Nicotine: 0.7 mg / cig. Nicotine: 0.5 mg / cig. Nicoti

  18. Slide 18: Fiscal Outlook

    Fiscal Outlook Czech Republic Slovakia Eq. €90 / ‘000 cig. €90 / ‘000 cig. (EU minimum) (EU minimum) 85 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 Minimum Excise Tax Development © 2011 Philip Morris ČR a.s. 18

  19. Slide 19: Dividend Proposal

    Dividend Proposal Accumulated Retained 376 CZK / share Earnings + + 2010 884 CZK / share Net Income 2010 Proposed 1 260 CZK / share Dividend Source: Philip Morris ČR a.s. Financials © 2011 Philip Morris ČR a.s. 19

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