Philip Morris International Inc · NYSE:PM

Philip Morris International — Philip Morris ČR a.s. — Shareholder Meeting (April 2023)

28 slides from Philip Morris International's shareholder meeting presentation, Apr 28, 2023

  1. Slide 1: Annual General Meeting of Shareholders

    KUTNÁ HORA, 28th April 2023 ANNUAL GENERAL MEETING OF SHAREHOLDERS Philip Morris ČR a.s. ANDREA GONTKOVIČOVÁ Chairperson of the Board of Directors © Phillip Morris ČR a.s., 2023

  2. Slide 2: Business performance, social responsibility, financial results

    1/ BUSINESS PERFORMANCE 2/ SOCIAL RESPONSIBILITY & SUSTAINABILITY 3/ CONSOLIDATED FINANCIAL RESULTS 2 © Phillip Morris ČR a.s., 2023

  3. Slide 3: Positive results in a challenging year

    Positive results in a challenging year • Consolidated revenues up by 11% (12.4% excl. currency) to CZK 20.9 billion • Profit from operations down by 2.8% (1.4% excl. currency) to CZK 4.2 billion • Consolidated net income up by 3.4% to CZK 3.6 billion • Total IQOS adult users1 up by 90 thousand to 86

  4. Slide 4: Business Performance

    BUSINESS PERFORMANCE 2022 © Phillip Morris ČR a.s., 2023

  5. Slide 5: Market share

    Market share 56.0% 55.5% 41.8% 40.1% TEREA, 12.3% 15.5% TEREA, HEETS, Fiit 11.1% HEETS, Fiit 13.4% 30.7% 26.7% 43.7% 40.0% Cigarettes Cigarettes 2021 2022 2021 2022 Combined market share slightly decreased, primarily due to: • Production constraints arising from the invasion in Ukraine • Discontinua

  6. Slide 6: Shipments (billion units)

    Shipments (billion units) 7.4 7.1 1.9 TEREA, HEETS, Fiit 2.3 4.1 4.1 0.9 TEREA, HEETS, Fiit 1.1 5.5 4.8 3.2 3.0 Cigarettes Cigarettes 2021 2022 2021 2022 Combined shipment remained flat in Slovakia, while it slightly decreased in Czechia: • Domestic cigarette shipments decreased in both countries pr

  7. Slide 7: Fiscal outlook

    Fiscal outlook (CZK/’000) Fiscal calendar 2021 - 2023 • Subject to consumption tax - cigarettes and other 3200 3360 3520 2900 tobacco products & smokeless alternatives • Predictable rates increase • The rates meet the minimum requirements of the EU 2020 2021 2022 2023 regulation for cigarettes (EUR

  8. Slide 8: Kutná Hora factory all time high production

    Kutná Hora factory all time high production (billion units) Production Production split 36.7 5% 34.8 32.7 4.2 8% 3.2 3.9 Export 32.5 Czechia 31.6 28.8 Slovakia 2020 2021 2022 87% Cigarettes Other tobacco products • The total volume of production in Kutná Hora in 2022 reached a historical maximum • T

  9. Slide 9: Performance of individual cigarette brands

    Performance of individual cigarette brands Development of market shares of individual brands during 2022 9.7% Stable performance with 8.8% growth potential 8.4% 8.5% 8.1% 7.7% Positive trend from the end of 2021 2.9% 2.9% Temporary loss of market share 2.4% due to inventory shortages in 2.3% 1.4% 1.

  10. Slide 10: Performance of individual cigarette brands

    Performance of individual cigarette brands Development of market shares of individual brands during 2022 26.2% 25.8% Market leader for more than 10 years Stable growth thanks to 13.3% 12.0% traditional brand value 5.1% 4.8% Petra scores on the market 1.1% with its own resistance 0.9% L&M Marlboro Pe

  11. Slide 11: News in our Marlboro brand

    News in our Marlboro brand 4,0% Marlboro Total 6.9% 7,0% Marlboro CRAFTED 3,5% 6,8% 6,6% 3,0% • Real Marlboro quality at an affordable price 2,5% 6,4% 6.1% 6,2% • Nationwide availability and support 2,0% 6,0% 5,8% • An instant success with price-sensitive smokers 1,5% Marlboro Crafted 1.2% 5,6% 1,0%

  12. Slide 12: Continued robust IQOS adult users' growth

    Continued robust IQOS adult users´ growth (cummulative) + 90,000 new adult users 860,000 770,000 users users 630,000 450,000 users users Share of users, who switched 69 % to IQOS and quit smoking 2019 2020 2021 2022 Zdroj: Philip Morris ČR a.s. and Philip Morris Slovakia s.r.o. internal estimations

  13. Slide 13: Smoke-free product portfolio

    Smoke-free product portfolio 2017 2018 2019 2021 IQOS IQOS 3 & IQOS 3 lil SOLID 2.4 Plus MULTI DUO by IQOS IQOS ILUMA PRIME lil SOLID 2.0 IQOS VEEV VEEBA IQOS ILUMA 13 © Phillip Morris ČR a.s., 2023 IQOS ILUMA ONE

  14. Slide 14: Our key topics in the public domain

    Our key topics in the public domain • Comprehensive media coverage and an extensive network of direct relations with media of all types throughout the Czech Republic (general / lifestyle / business) • Ongoing media support for the launch of new products and all relevant company news • Raising the vi

  15. Slide 15: Growing public support

    Growing public support • Permanent discussion on public health and the vital role of smoke-free products • Solid medical professionals and experts’ consensus on Policy Makers Senior Gov Medical Experts tobacco harm reduction approach Officials • Risk-proportionate regulatory and tax policy covered b

  16. Slide 16: Social Responsibility & Sustainability

    SOCIAL RESPONSIBILITY & SUSTAINABILITY 16 © Phillip Morris ČR a.s., 2023

  17. Slide 17: Social Responsibility

    Social Responsibility PMČR PMI Support to Ukraine • Focusing on helping refugees, relatives of our local CZK 6.7 USD 10 million million colleagues and employees of PM Ukraine and their families, including ensuring evacuation, setting up a helpline, material assistance to the Regional Refugee Center

  18. Slide 18: Manufacturing Sustainability Highlights

    Manufacturing Sustainability Highlights Alliance for Water Stewardship since Water management 2021 Successful surveillance audit achieved PMI Energy and carbon Carbon neutrality since goals emissions 2022 = re-certification reached 2021 2025 0 % production waste ends up in a landfill since Waste Mor

  19. Slide 19: Product Sustainability Highlights

    Product Sustainability Highlights Smoke-free portfolio Cigarettes Device Take Back Anti-littering efforts • reducing e-waste of used devices • On-pack messaging – EU SUP mandatory • expansion in 2022 due to enormous success • Voluntary activities: • very positive response from consumers • „World No

  20. Slide 20: Consolidated Financial Results

    CONSOLIDATED FINANCIAL RESULTS 2022 20 © Phillip Morris ČR a.s., 2023

  21. Slide 21: Net Revenues

    Net Revenues Change in % (CZK million) 2022 2021 Change Actual Excluding currency Net Revenues 20,948 18,867 2,081 11% 12.4% 1,500 636 191 10 20,948 18,867 (256) 2021 Currency Czech Republic Slovakia Manuf. Services Other 2022 PVM* PVM* PVM* *PVM – Price, Volume and Mix variance 21 © Phillip Morris

  22. Slide 22: Net Income

    Net Income Change in % (CZK million) 2022 2021 Change Actual Excluding currency Net Revenues 20,948 18,867 2,081 11% 12.4% Operating Income 4,243 4,367 (124) (2.8)% (1.4)% Net Income 3,636 3,517 119 3.4% 5.1% 900 52 (1,012) 337 (94) 3,636 3,517 (61) 2021 Currency PVM* Manuf. services Costs / Other F

  23. Slide 23: Assets & Liabilities

    Assets & Liabilities (CZK million) (CZK million) ASSETS 2022 2021 Change LIABILITIES & EQUITY 2022 2021 Change Current Assets Current Liabilities Cash & Equivalents 7,631 9,290 (1,659) Trade and other financial liabilities 2,871 3,603 (732) Inventories 1,851 1,940 (89) Finance lease liability – shor

  24. Slide 24: Cash & Cash Equivalents

    Cash & Cash Equivalents (CZK million) 2022 2021 Change Change in % Cash & Cash Equivalents 7,631 9,290 (1,659) (18%) 4,596 (934) (3,598) 9,290 (1,723) 7,631 Cash at Profit before tax Income tax paid Dividends paid Changes in Cash at 31. 12. 2021 working capital & 31. 12. 2022 other items Source: Phi

  25. Slide 25: Business Model

    Business Model Combustible products Smoke-free products Philip Morris ČR a.s. Philip Morris Product S.A. Entrepreneur Entrepreneur Philip Morris ČR a.s. Philip Morris Slovakia s.r.o. Philip Morris ČR a.s has an entrepreneurial position for Limited Risk Distributor combustible products in both Both,

  26. Slide 26: 2022 Annual Financial Report Risk Factor

    2022 Annual Financial Report Risk Factor • Our profitability, and consequently, the amount of our dividend payout reflects our dual role of being a full risk entrepreneur of combustible portfolio products and a limited risk distributor for reduced-risk products. • Our remuneration for commercializat

  27. Slide 27: EPS & Dividend proposal

    EPS & Dividend proposal Consolidated earnings per share in CZK 2022 2021 2020 2019 2018 2017 2016 2015 Current year 1,324 1,281 1,285 1,464 1,397 1,269 1,008 936 Prior years retained 0 29 7 101 304 114 106 89 Total retained earnings per share 1,324 1,310 1,292 1,566 1,701 1,383 1,113 1,025 Dividend

  28. Slide 28: Thank You

    THANK YOU 28 © Phillip Morris ČR a.s., 2023

Philip Morris ČR a.s. — Shareholder Meeting (April 2023) on 6ix