EX-99.2 3 dex992.htm PHILIP MORRIS INTERNATIONAL INC. PRESENTATION SLIDES, DATED NOVEMBER 19, 2009 Philip Morris International Inc. Presentation Slides, dated November 19, 2009
Louis C. Camilleri
Chairman and Chief Executive Officer
Morgan Stanley Global Consumer & Retail Conference
New York, 19 November 2009
Exhibit 99.2

2
This presentation and related discussion contain statements that, to the
extent they do not relate strictly to historical or current facts, constitute
“forward-looking statements”
within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are based on current plans, estimates and expectations, and
are not guarantees of future performance. They are based on
management’s expectations that involve a number of business risks and
uncertainties, any of which could cause actual results to differ
materially from those expressed in or implied by the forward-looking
statements. PMI undertakes no obligation to publicly update or revise
any forward-looking statements, except in the normal course of its
public disclosure obligations. The risks and uncertainties relating to the
forward-looking statements in this presentation include those described
under Item 1A. “Risk Factors”
in PMI’s Form 10-K for the year ended
December 31, 2008, and Form 10-Q for the quarter ended September 30,
2009, filed with the Securities and Exchange Commission
Reconciliations of non-GAAP measures included in this presentation to
the most comparable GAAP measures are provided either at the end
of
this web cast or are already available on our web site
Forward-Looking, Cautionary Statements and Use of
Non-GAAP Measures

3
Agenda
Performance against our growth targets
Why we believe these growth targets remain realistic
Key strategies and growth opportunities, and the
strong cash flow that underpins our ability to enhance
shareholder returns

4
Cigarette Volume
(a)
1 –
2%
Net Revenues
(b)(c)
4 –
6%
Operating Companies Income
(c)
6 –
8%
EPS
(d)
10 –
12%
(a)
Organic volume growth (that is, excluding acquisitions) target of 1%
(b)
Excluding excise taxes
(c)
Excluding currency and acquisitions
(d)
Excluding currency
Currency Neutral Mid to Long-Term
Annual Growth Targets

5
2008 PMI Results
1
Mid to
Long-Term
Target
1.0
0.6
3.2
0.3
(0.2)
Organic Cigarette
Volume
(a)
Full
Year
Q4
Q3
Q2
Q1
(% growth)
(a)
Excluding acquisitions
Source: PMI Financials

6
2008 PMI Results
10-12
6-8
4-6
1
Mid to
Long-Term
Target
12.9
12.5
9.0
10.0
23.7
Adjusted Diluted
EPS
(d)(e)
9.8
5.5
7.1
9.2
19.4
Adjusted OCI
(c)
5.6
5.6
7.2
4.0
5.5
Net Revenues
(b)(c)
1.0
0.6
3.2
0.3
(0.2)
Organic Cigarette
Volume
(a)
Full
Year
Q4
Q3
Q2
Q1
(% growth)
(a)
Excluding acquisitions
(b)
Excluding excise taxes
(c)
Excluding currency and acquisitions
(d)
Excluding currency
(e)
Compared to pro forma 2007 results
(f)
Please see relevant reconciliations to most comparable GAAP measures posted on our web site or at the end of this presentation
Source: PMI Financials
(f)
(f)
(f)
(f)
(f)

7
2009 PMI Results
(a)
Excluding acquisitions
Source: PMI Financials
1
Mid to
Long-Term
Target
(2.1)
(4.0)
(1.1)
(1.1)
Organic Cigarette
Volume
(a)
YTD
Sept
Q3
Q2
Q1
(% growth)

8
Pricing Variance
($ million)
Source: PMI Financials
2008
2009
277
248
305
393
358
549
590
0
600
Q1
Q2
Q3
Q4
Q1
Q2
Q3

9
2009 PMI Results
(a)
Excluding acquisitions
(b)
Excluding excise taxes
(c)
Excluding currency and acquisitions
(d)
Excluding currency
(e)
Please
see
relevant
quarterly
reconciliations
to
most
comparable
GAAP
measures
posted
on
our
website
Source: PMI Financials
10-12
6-8
4-6
1
Mid to
Long-Term
Target
15.4
18.3
17.2
11.3
Adjusted Diluted
EPS
(d)
8.6
10.6
9.5
5.3
Adjusted OCI
(c)
4.7
4.1
6.1
3.9
Net Revenues
(b)(c)
(2.1)
(4.0)
(1.1)
(1.1)
Organic Cigarette
Volume
(a)
YTD
Sept
Q3
Q2
Q1
(% growth)
(e)
(e)
(e)
(e)

10
PMI Adjusted OCI Margins
(a)
1.6
44.2
42.6
PMI
7.2
32.7
25.5
LA & Canada
2.4
37.3
34.9
Asia
2.0
44.8
42.8
EEMA
0.8pp
51.7%
50.9%
EU
Variance
YTD Sept
2009
YTD Sept
2008
(%)
(a)
Excluding currency. Please see relevant reconciliations to most comparable GAAP measures posted on our web site
Source: PMI Financials

11
2009 Reported Diluted EPS Guidance
2009 reported diluted EPS guidance: $3.20 -
$3.25
Based on October results and current business and
currency outlook for the remainder of the year, we
expect reported diluted EPS for 2009 to be at the
upper end of this range
Source: PMI Financials

12
Future Prospects
Beyond 2009, we believe we can continue to deliver
against our mid to long-term annual growth targets
Difficult to predict shape and timing of employment-
led economic recovery
Confident we can meet EPS and free cash flow
targets, which we believe are the two most important
metrics
Ability to meet our volume targets depends on
sustained recovery in employment levels

13
PMI Organic Volume Drivers
Total consumption trends
Geographic mix
PMI market share growth
Other factors

14
Total Cigarette Industry Volume
(a)
(a)
Excluding China, USA and duty-free
Note: Organization for Economic Co-operation and Development (OECD)
Source: PMI estimates
(billion units)
0.2%
CAGR
(2.5)%
CAGR
1.9%
CAGR
Non-OECD
OECD
1,170
2,172
3,342
1,297
2,017
3,314
2004
2008

15
Total Cigarette Industry Volume
(a)
Non-OECD
OECD
(2.4)%
Var.
(3.4)%
Var.
(1.9)%
Var.
Forecast
(a)
Excluding China, USA and duty-free
Note: Organization for Economic Co-operation and Development (OECD)
Source: PMI estimates
0.2%
CAGR
(2.5)%
CAGR
1.9%
CAGR
(billion units)
1,170
1,130
2,172
2,131
3,342
3,261
1,297
2,017
3,314
2004
2008
2009

16
Key Industry Volume Drivers
Demographics
Consumer purchasing power

17
Key Industry Volume Drivers
Demographics
Consumer purchasing power
Excise taxation

18
Key Industry Volume Drivers
Demographics
Consumer purchasing power
Excise taxation
Regulatory environment
Social trends

19
Key Industry Volume Drivers
Demographics
Consumer purchasing power
Excise taxation
Regulatory environment
Social trends
Expected industry volume trend post economic crisis:
annual range of +/-
0.5%
Source: PMI estimates

20
PMI Share Growth Targets
To achieve 1% organic volume growth within this
industry volume range, PMI needs to gain between
0.1 and 0.4 share points
Organic share gain of 0.2 points in 2008 (with 0.2%
industry volume growth)
PMI should be able to do at least as well going
forward benefiting from:
-
Greater exposure to faster growing emerging markets
-
Strong share momentum across a wide range of geographies
Source: PMI estimates

21
PMI Regional Volume Mix
EU
LA &
Canada
Asia
EEMA
2004 Volumes:
762 billion units
Source: PMI Financials
EU
EEMA
Asia
LA &
Canada
2008 Volumes:
870 billion units
36%
35%
19%
10%
28%
35%
26%
11%

22
PMI Asia Region Volume Mix
Japan
Other
Asia
Indonesia
Source: PMI Financials
Japan
Indonesia
Other
Asia
2004 Volumes:
142 billion units
2008 Volumes:
224 billion units
26%
33%
41%
42%
52%
6%

23
PMI Market Share Growth
1.8
1.6
1.3
1.1
1.0
1.2
1.0
(b)
1.9pp
Avg. Annual
Share Growth
2004-09 YTD
69.2
63.5
60.1
Mexico
73.3
66.3
65.1
Argentina
14.0
8.6
7.4
Korea
29.0
28.3
23.5
Indonesia
35.8
33.1
31.0
Ukraine
42.8
43.6
36.9
Turkey
25.3
22.2
N/A
(a)
Russia
15.9%
10.2%
6.4%
Egypt
YTD Sept
2009
2006
2004
(a)
No comparable data for 2004 due to change of service provider
(b)  Average growth rate for 2006 through 2009 YTD
Source: A.C. Nielsen, Korea Research Center and PMI estimates

24
PMI Market Share Development
(a)
OECD
Non-OECD
(a)
YTD Sept 2009 data based on 94 key markets in which PMI operates
Note: Organization for Economic Co-operation and Development (OECD)
Source: PMI estimates
(%)
Sept 2009
Sept 2009
34.2
33.6
34.6
34.8
23.4
24.4
24.6
25.0
20
40
2007
2008
12mm
3mm
2007
2008
12mm
3mm

25
PMI Net Revenue Growth
We believe 1% annual organic volume growth rate
remains achievable in mid to long-term
Prime focus is net revenue growth excluding currency
and acquisitions of 4-6%, driven by:
-
pricing
-
product mix
-
geographic mix
Note: Net revenues exclude excise taxes

26
PMI Pricing Variance by Region
EU
LA &
Canada
Asia
EEMA
EU
LA &
Canada
Asia
EEMA
2008:
$1.2 billion
2009 YTD Sept:
$1.5 billion
Source: PMI Financials
26%
40%
20%
14%
31%
41%
17%
11%

27
($ million)
Forecast Cumulative Gross Cost Savings (2008-10)
Productivity and Cost Savings
450
250
1,550
850
Manufacturing
Productivity
G&A + Other
EU Program
Total

28
Strategies for Growth
Reinforce our position in profitable consumer
segments
Drive growth of our leading brand portfolio through
enhanced consumer understanding and innovation
Expand geographically
Effectively utilize our strong and growing cash flow to
increase shareholder returns
Pursue opportunities for margin improvement
Boost organizational effectiveness and generate
productivity savings
Obtain a fair and reasonable regulatory and fiscal
environment
Attract, motivate and retain the best global talent

29
Strategies for Growth
Reinforce our position in profitable consumer
segments
Drive growth of our leading brand portfolio through
enhanced consumer understanding and innovation
Expand geographically
Effectively utilize our strong and growing cash flow to
increase shareholder returns
Pursue opportunities for margin improvement
Boost organizational effectiveness and generate
productivity savings
Obtain a fair and reasonable regulatory and fiscal 
environment
Attract, motivate and retain the best global talent

30
Top 15 International Brands (2008)
Lark
Parliament
Chesterfield
Bond Street
Philip Morris
L&M
Marlboro
Source: PMI data from Financials. Competitive data for BAT and JT derived from 2008 company reports and PMI estimates
(billion)
26
37
38
39
41
92
311
0
50
100
150
200
250
300
350
LD
Dunhill
Viceroy
Camel
Pall Mall
Kent
Mild Seven
Winston
PMI
BAT
JT

31
Brand Portfolio
Mid-Price
Premium &
Above
Local Heritage
International
Low-Price

Enhanced Consumer Understanding and Innovation
Enhanced Consumer Understanding and Innovation

33
Marlboro
Architecture
“Flavor
enjoyment”
“Smooth taste
and style”
“Fresh taste
sensations”
Red
Gold
Fresh

Marlboro Red
Marlboro Red
Line
Line

36
New Marlboro Red
Pack Perception -
France
Beautiful
In the spirit
of the times
High-
end
Modern
Innovative
Worth its price
Proud to show
:
Significant
difference
at
95%
confidence
level
:
:
New Pack
(n=100)
Old Pack
(n=100)
Source: PMI market research in France (POS study 2 months after launch in Montpellier)
0
1
2
3
4
5
6
7
8
9
10
Masculine
That I like
That goes well with me
Original
Elegant/chic
Refined
Feminine
Lets me stand out
That lacks character

38
Marlboro Red
Perception -
Romania
2008 vs. 2007 LA -
24
2007
2008
Note: LA stands for Legal Age (min 18).  An index of 100 is equal to the average score obtained across all brands for the item
Source: Strategic Group Research Consulting, market research in Romania
-40
10
60
110
160
210
For people like me
Understands and offers what I want
Worth its price
Regularly launches appealing new products
Fun
Talks credibly about its products
Premium / worth paying for
Growing in popularity
Stylish / elegant
Advertising / communication appealing to me
For people my age
Stands test of time
Prestigious
Authentic
Highly visible
Modern
Classic / timeless
Would smoke on special occasions only
Very masculine
Feminine

Marlboro Gold Line

Marlboro
Marlboro
Innovation
Innovation

44
Marlboro
Market
Share
–
Italy
Gold Touch
2008
2009
Source: PMI estimates
(%)
22.6
22.1
21.9
22.7
23.1
1.4
15
25
Q3
Q4
Q1
Q2
Q3

45
Marlboro
Market
Share
–
Japan
Black
Menthol
2007
2008
2009
Source: Tobacco Institute of Japan
(%)
0.8
10.1
10.2
10.6
1.4
0
12
Q3
Q3
Q3

46
Marlboro
Market Share –
Korea
Filter /
Flavor
Plus
2005
2007
2009
2008
2006
Source: Korea Research Center
(%)
3.0
3.4
4.1
4.8
6.0
0
6
Q3
Q3
Q3
Q3
Q3

47
Marlboro
Smoker
Share
–
EU
Region
(pp)
(Difference LA-24 vs. LA-64)
Italy
Belgium
Greece
Sweden
Neth.
Czech
France
UK
Poland
Spain
Germany
Note: LA stands for Legal Age (min 18).  All data are 2009 preliminary, except Italy, Poland and Spain, which are 2008 data
Source: PMI Market Research (General Consumer Tracking Survey)
Austria
(3.6)
8.5
-4
-2
0
2
4
6
8
10

48
Marlboro
Smoker
Share
–
Portugal
9.7pp
7.9pp
(%)
Note: LA stands for Legal Age (min 18)
Source: PMI Market Research (General Consumer Tracking Survey)
28.9
21.5
24.8
28.7
34.1
21.0
18.3
21.4
21.6
24.4
15
35
Feb-08
May-08
Oct-08
Feb-09
Sep-09
LA-24
LA-64

49
Marlboro
Smoker
Share
–
Other
Regions
(Difference LA-24 vs. LA-64)
Korea
Japan
Ukraine
Mexico
Turkey
Romania
Russia
Egypt
Indon.
Arg.
Note:
LA
stands
for
Legal
Age
(min
18).
All
data
are
2009
preliminary,
except
Egypt,
Romania,
Russia,
Saudi
Arabia
and
Ukraine,
which
are
2008
data.
Source: PMI Market Research (General Consumer Tracking Survey)
Saudi
15.5
(pp)
9.8
-2
0
2
4
6
8
10
49

51
Parliament
Share
Variances
(Q3, 2009 vs. Q3, 2007)
(pp)
Korea
Turkey
Kazakhstan
Ukraine
Russia
Japan
Source: Korea Research Center, A.C. Nielsen, Business Analytica and Tobacco Institute of Japan
2.3
2.2
1.0
0.9
0.4
(0.2)
-1
0
1
2
3

1mg Segment

53
PMI 1mg Segment Shares
(%)
Q3-07
Q3-08
Q3-09
Q3-07
Q3-08
Q3-09
Q3-07
Q3-08
Q3-09
Source: Tobacco Institute of Japan, Korea Research Center and A.C. Nielsen
19.7
9.8
8.8
19.3
11.2
12.5
20.5
13.5
15.6
0
25
Japan
Korea
Saudi Arabia

54
L&M
Old Line-up
New Line-up

55
L&M
Market
Share
Variances
–
EU
Region
(Q3, 2009 vs. Q3, 2007)
(pp)
Germany
Source: A.C. Nielsen and PMI estimates
Czech
Neth.
Sweden
Spain
Poland
Belgium
France
3.0
2.6
2.3
2.3
2.1
1.4
1.0
0.4
0
3

L&M Link
(super-slims)

58
(%)
Super-Slims Segment –
Poland
(%)
Q3-07
Q3-08
Q3-09
Source: A.C. Nielsen
Segment Share of Market
PMI Share of Segment
Q3-07
Q3-08
Q3-09
6.5
8.2
10.3
0
12
25.7
35.8
40.3
0
50

59
Strategies for Growth
Reinforce our position in profitable consumer
segments
Drive growth of our leading brand portfolio through
enhanced consumer understanding and innovation
Expand geographically
Effectively utilize our strong and growing cash flow to
increase shareholder returns
Pursue opportunities for margin improvement
Boost organizational effectiveness and generate
productivity savings
Obtain a fair and reasonable regulatory and fiscal 
environment
Attract, motivate and retain the best global talent

60
Organic Market Entry and Expansion
(%)
PMI Market Share
Algeria
Bulgaria
L&M
Marlboro
Source: A.C. Nielsen and PMI estimates
Other
Marlboro
Muratti
7.7
9.0
11.5
3.3
5.3
5.9
3.5
5.7
10.1
1.4
3.1
3.3
5.0
5.4
11.2
14.7
21.6
6.6
11.7
14.4
0
25
Q3-07
Q3-08
Q3-09
Q3-07
Q3-08
Q3-09

61
Acquisitions –
Indonesia
PMI
Gudang
Garam
Djarum
Market Shares
(%)
Source: PMI estimates based on A.C. Nielsen
26.4
29.0
27.4
21.2
19.6
21.2
15
30
2005
2006
2007
2008
2009
Sept
YTD

62
Acquisitions -
Canada
Rothmans Inc.
PMI purchased 60% not owned for $1.9 billion
Market size:
28.6 billion in 2008
1.6% growth YTD Sept
PMI market share:
33.4% in 2008
0.5 pp share growth YTD Sept
Source: PMI estimates

63
PMI
BAT
JT
IMT
(b)
Other
PMI
BAT
JT
Other
Market Shares excl. USA and duty-free
Market Shares excl. China, USA and duty-free
(a)
Volumes are on a calendar basis, except for IMT, which reports on a fiscal year ending September.
(b)
Impact of 3.8 months of Altadis volume has been added and U.S. volume has been excluded to determine full year share.
Source: Company reports and PMI estimates
IMT
(b)
CNTC
Competitive Landscape (2008)
(a)
9.3%
18.1%
25.8%
21.0%
25.8%
39.3%
15.6%
15.6%
12.8%
11.0%
5.7%

64
Geographic Expansion
India: launch of locally manufactured Marlboro
through a PMI controlled joint-venture
South Africa: acquisition of business that has close to
30% of tobacco market

65
China
Nearly 40% of the world cigarette market excluding
the USA and duty-free
PMI has license agreement for production and sale of
Marlboro
and joint-venture for international markets
China National Tobacco Corporation the key partner
Marlboro
sales remain modest but are increasing
International joint-venture brands performing well
Tremendous long-term potential
Source: PMI estimates

66
Strategies for Growth
Reinforce our position in profitable consumer
segments
Drive growth of our leading brand portfolio through
enhanced consumer understanding and innovation
Expand geographically
Effectively utilize our strong and growing cash flow to
increase shareholder returns
Pursue opportunities for margin improvement
Boost organizational effectiveness and generate
productivity savings
Obtain a fair and reasonable regulatory and fiscal 
environment
Attract, motivate and retain the best global talent

67
Cumulative Operating Cash Flow
(2008-2010)
Source: PMI Financials
($ billion)
2008
2009
2010
6.6
7.3
7.8
21.7
March 2008

68
Cumulative Operating Cash Flow
2008
2009
2010
YTD Sept
(2008-2010)
Source: PMI Financials
($ billion)
6.6
7.9
7.3
6.4
7.8
21.7
14.3
March 2008
Actual

69
Free Cash Flow as a % of Net Revenues –
Peer Group
2008 FY –
Sept 30, 2009 YTD
Note:
Free
Cash
Flow
as
a
%
of
Net
Revenue,
excluding
excise
taxes,
is
defined
as
total
Free
Cash
Flow
during
the
2008
–
Sept
30,
2009
YTD
period
($12,772
million)
over
the
total
revenue
during
the
same
period
($44,023
million).
Free
Cash
Flow
is
defined
as
Operating
Cash
Flow
($14,354
million)
less
Capital
Expenditures
($1,582
million).
Nearest
comparable
period
is
used
where
the
2008
–
Sept
30,
2009
YTD
comparison
is
unavailable
Source: Centerview Partners from Company filings
4.3%
6.7%
7.4%
7.8%
8.0%
10.7%
15.7%
17.0%
18.2%
18.9%
19.3%
19.4%
19.9%
21.9%
23.1%
23.3%
33.7%
29.0%
Heineken
Nestle
Kraft
Bayer
Unilever
PepsiCo
Diageo
McDonalds
Vodafone
Coca-Cola
Imperial Tobacco
Novartis
Johnson & Johnson
Roche
BAT
GlaxoSmithKline
PMI
Pfizer

70
Free Cash Flow as a % of Net Revenues –
Tobacco
2008 FY –
Sept 30, 2009 YTD
Note:
Free
Cash
Flow
as
a
%
of
Net
Revenue,
excluding
excise
taxes,
is
defined
as
total
Free
Cash
Flow
during
the
2008
–
Sept
30,
2009
YTD
period
($12,772
million)
over
the
total
revenue
during
the
same
period
($44,023
million).
Free
Cash
Flow
is
defined
as
Operating
Cash
Flow
($14,354
million)
less
Capital
Expenditures
($1,582
million).
Nearest
comparable
period
is
used
where
the
2008
–
Sept
30,
2009
YTD
comparison
is
unavailable
Source: Centerview Partners from Company filings
5.7%
13.3%
13.4%
16.8%
19.3%
23.1%
23.7%
29.0%
Japan Tobacco
Reynolds American
Swedish Match
Altria
Imperial Tobacco
BAT
Lorillard
PMI

71
Working Capital
Average quarterly working capital in 2008:
$ billion
-
Receivables
2.9
-
Inventories
9.1
-
Other
0.3
-
Payables
(7.5)
-
Total
4.8
Source: PMI Financials

72
Working Capital –
Benchmarking
Objective was to determine areas where improvements
could be made to generate additional cash
Comparisons made with other consumer products
companies and our key competitors

73
Working Capital –
Benchmarking
Objective was to determine areas where improvements
could be made to generate additional cash
Comparisons made with other consumer products
companies and our key competitors
Opportunities identified, particularly inventories
Comprehensive program initiated
Expect to generate $750 million to $1 billion in incremental
cash flow over period 2010-2012

74
Working Capital –
Benchmarking
Objective was to determine areas where improvements
could be made to generate additional cash
Comparisons made with other consumer products
companies and our key competitors
Opportunities identified, particularly inventories
Comprehensive program initiated
Expect to generate $750 million to $1 billion in incremental
cash flow over period 2010-2012
Confident our free cash flow growth rate will
exceed our net earnings growth rate

75
Available Funds: Jan 2008 –
Sept 2009
Operating
Cash Flow
Incremental
Financing
+
$14.3 billion
$4.8 billion
(a)
Total Funds:
$19.1 billion
(a)
Net of Q1, 2008, special dividend paid by PMI to Altria Group, Inc. of $3.0 billion
Source: PMI Financials

76
Use of Funds: Jan 2008 –
Sept 2009
Operating
Cash Flow
Incremental
Financing
Capital
Expenditures
Acquisitions
+
$14.3 billion
$4.8 billion
(a)
Total Funds:
$19.1 billion
$1.6 billion
(8%)
$2.6 billion
(14%)
(a)
Net of Q1, 2008, special dividend paid by PMI to Altria Group, Inc. of $3.0 billion
Source: PMI Financials

77
Use of Funds: Jan 2008 –
Sept 2009
Operating
Cash Flow
Incremental
Financing
Capital
Expenditures
Acquisitions
Dividends
Share
Repurchases
+
$14.3 billion
Total Funds:
$19.1 billion
$1.6 billion
(8%)
$2.6 billion
(14%)
$5.3 billion
(28%)
$9.6 billion
(50%)
$4.8 billion
(a)
(a)
Net of Q1, 2008, special dividend paid by PMI to Altria Group, Inc. of $3.0 billion
Source: PMI Financials

78
Dividends
March 2008, established at $1.84 per share on
annualized basis
Increased by 17.4% in August 2008 and 7.4% in
September 2009
Current level of $2.32 per share on an annualized
basis equates to a yield of 4.6%
Source: PMI Financials

79
Dividend Yield
Note:
Dividend
yield
represents
the
annualized
dividend
at
Mar
28,
2008,
and
Nov
13,
2009,
over
the
closing
share
price
on
those
dates,
respectively
Source: Centerview Partners based on company filings and FactSet
March 28, 2008
November 13, 2009
1.9%
2.7%
2.9%
2.9%
2.9%
3.1%
3.2%
3.5%
3.5%
3.6%
3.7%
3.7%
3.8%
4.3%
4.5%
4.6%
4.8%
5.7%
Heineken
Bayer
Coca-Cola
PepsiCo
Nestle
Roche
Johnson & Johnson
McDonalds
Diageo
Pfizer
Unilever
Novartis
Imperial Tobacco
Kraft
BAT
PMI
GlaxoSmithKline
Vodafone
1.8%
2.1%
2.2%
2.4%
2.5%
2.6%
2.7%
2.7%
3.0%
3.1%
3.2%
3.2%
3.5%
3.5%
3.6%
4.8%
5.0%
5.7%
Heineken
PepsiCo
Coca-Cola
Roche
Nestle
Johnson & Johnson
Bayer
McDonalds
Imperial Tobacco
Novartis
Diageo
BAT
Kraft
Unilever
PMI
Vodafone
GlaxoSmithKline
Pfizer

80
Share Repurchases
$13 billion two-year program has been maintained
throughout the economic and financial crisis
$9.6 billion used to purchase 209.6 million shares at
an average price of $45.81 per share
$3.4 billion remaining in current program, as of
September 30, 2009
Source: PMI Financials

81
Net Debt to EBITDA –
Peer Group
Note:
Not
Meaningful
(NM).
Please
see
relevant
reconciliations
to
most
comparable
GAAP
measures
posted
on
our
website
or
at
the
end
of
this
presentation
Source: Centerview Partners based on company filings
September 30, 2009
NM
NM
NM
0.2x
0.5x
0.9x
1.0x
1.1x
1.2x
1.2x
1.8x
1.9x
1.9x
2.0x
2.7x
2.8x
2.8x
3.6x
Johnson & Johnson
Pfizer
Novartis
Coca-Cola
PepsiCo
Nestle
GlaxoSmithKline
Unilever
McDonalds
PMI
Bayer
Roche
Vodafone
BAT
Diageo
Kraft
Heineken
Imperial Tobacco

82
Capital Structure
Goal is to maintain current credit ratings and
flexibility to make acquisitions
Intention is to maintain our leverage within the
constraints of these credit ratings

83
Shareholder Returns
This year so far, $7.4 billion returned to shareholders
through dividends and share repurchases
Since March 2008 spin-off, $14.9 billion returned to
shareholders, representing more than 15% of our
current market capitalization
Source: PMI Financials

84
Total Shareholder Return –
Weighted Average
Since Spinoff (March 28, 2008 –
November 13, 2009)
Note: Peer groups represent the market weighted average return of the group. Total shareholder return and exchange rates are for period beginning
March 28, 2008 and ending November 13, 2009.  PMI includes pro forma $0.46 per share dividend paid in April 2008
Source: Centerview Partners based on FactSet
Total Shareholder Return –
Local Currency
PMI
Company
Peer Group
S&P 500
Tobacco
Peer Group
FTSE 100
PMI
Company
Peer Group
FTSE 100
Tobacco
Peer Group
S&P 500
Total Shareholder Return –
USD
6.4%
(3.5)%
(13.5)%
(13.5)%
(16.5)%
1.8%
6.4%
(0.4)%
(6.4)%
(13.5)%

85
Total Shareholder Return –
Peer Group (USD)
Since Spinoff (March 28, 2008 –
November 13, 2009)
Note: Exchange rates are as of March 28, 2008 and November 13, 2009.  PMI includes pro forma $0.46 per share dividend paid in April 2008
Source: Centerview Partners based on FactSet
Vodafone
Imperial Tobacco
Heineken
Roche
Diageo
PepsiCo
Kraft
Pfizer
BAT
Coca-Cola
Nestle
Johnson & Johnson
Unilever
Bayer
PMI
GlaxoSmithKline
Novartis
McDonalds
(19.2)%
(16.8)%
(16.2)%
(12.9)%
(12.3)%
(9.4)%
(6.9)%
(4.8)%
(4.5)%
(2.7)%
0.2%
0.3%
1.3%
1.8%
6.4%
6.8%
8.7%
20.2%

86
Conclusions
Key objective is to continue to provide superior
returns to our shareholders
Business fundamentals in very good shape
Expect to consistently meet or exceed financial mid to
long-term growth targets
Organic volume growth should resume following
employment-led economic recovery
Tremendous cash flow generation
Optimization of working capital
Dividend and share repurchases

Questions & Answers

88
(in millions USD rounded)
PHILIP MORRIS INTERNATIONAL
Reconciliation of Non-GAAP Measures
Adjustments for the Excises Taxes, Impact of Currency and Acquisitions on Net Revenues
Reported
Net
Revenues
Less
Excise
Taxes
Reported Net
Revenues
excluding
Excise Taxes
Less
Currency
Reported Net
Revenues
excluding
Excise Taxes
& Currency
Less
Acquisi-
tions
Reported Net
Revenues
excluding
Excise Taxes,
Currency &
Acquisitions
Reported
Net
Revenues
Less
Excise
Taxes
Reported
Net
Revenues
excluding
Excise
Taxes
    
Reported
Reported
excluding
Currency
Reported
excluding
Currency &
Acquisitions
14,354
$     
8,433
   
5,921
$          
442
          
5,479
$          
45
          
5,434
$             
For the Quarter ended March 31,
12,170
$     
7,018
   
5,152
$       
14.9%
6.3%
5.5%
16,703
9,994
6,709
638
6,071
-
6,071
For the Quarter ended June 30,
13,948
8,113
5,835
15.0%
4.0%
4.0%
17,365
10,412
6,953
590
6,363
14
6,349
For the Quarter ended September 30,
14,232
8,316
5,916
17.5%
7.6%
7.2%
15,218
9,096
6,122
(288)
6,410
170
6,240
For the Quarter ended December 31,
14,893
8,986
5,907
3.6%
8.5%
5.6%
63,640
37,935
25,705
1,382
24,323
229
24,094
For the Year ended December 31,
55,243
32,433
22,810
12.7%
6.6%
5.6%
% Change on Reported Net Revenues
excluding Excise Taxes
2007
2008

89
(in millions USD rounded)
PHILIP MORRIS INTERNATIONAL
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Operating Companies Income to Adjusted Operating Companies Income &
Adjustments for the Impact of Currency and Acquisitions on Operating Companies Income
Reported
Operating
Companies
Income
Less Asset
Impairment &
Exit Costs /
Others
Adjusted
Operating
Companies
Income
Less
Currency
Adjusted
Operating
Companies
Income
excluding
Currency
Less
Acquisi-
tions
Adjusted
Operating
Companies
Income
excluding
Currency &
Acqusitions
Reported
Operating
Companies
Income
Less Asset
Impairment &
Exit Costs /
Others
Adjusted
Operating
Companies
Income
Adjusted
Adjusted
excluding
Currency
Adjusted
excluding
Currency &
Acquisitions
2,546
$         
(23)
                     
2,569
$         
224
           
2,345
$         
21
              
2,324
$            
For the Quarter ended March 31,
1,884
$          
(62)
                     
1,946
$         
32.0%
20.5%
19.4%
2,646
           
(172)
                    
2,818
           
277
           
2,541
           
13
              
2,528
              
For the Quarter ended June 30,
2,240
            
(76)
                     
2,316
           
21.7%
9.7%
9.2%
2,939
           
(13)
                     
2,952
           
217
           
2,735
           
23
              
2,712
              
For the Quarter ended September 30,
2,518
            
(15)
                     
2,533
           
16.5%
8.0%
7.1%
2,303
           
-
                         
2,303
           
(237)
          
2,540
           
68
              
2,472
              
For the Quarter ended December 31,
2,301
            
(42)
                     
2,343
           
-1.7%
8.4%
5.5%
10,434
         
(208)
                    
10,642
         
481
           
10,161
         
125
            
10,036
            
For the Year ended December 31,
8,943
            
(195)
                    
9,138
           
16.5%
11.2%
9.8%
% Change on Adjusted Operating
Companies Income
2008
2007

90
(in millions USD rounded)
PHILIP MORRIS INTERNATIONAL
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share &
Adjustments for the Impact of Currency and 2007 Pro-Forma
Reported
(1)(3)
Less Asset
Impairment &
Exit Costs /
Others
Adjusted
Less
Currency
Adjusted
excluding
Currency
Reported
(1)(3)
Less Asset
Impairment &
Exit Costs /
Others
Adjusted
Pro-Forma
(2)
Adjustments
Adjusted
Pro-Forma
Adjusted
Adjusted
excluding
Currency
For the Quarter ended March 31,
0.79
$                 
(0.01)
0.80
$      
0.07
0.73
$       
Diluted Earnings Per Share
0.60
$                
(0.02)
0.62
$      
(0.03)
0.59
$         
35.6%
23.7%
For the Quarter ended June 30,
0.80
$                 
(0.07)
0.87
$      
0.10
0.77
$       
Diluted Earnings Per Share
0.70
$                
(0.03)
0.73
$      
(0.03)
0.70
$         
24.3%
10.0%
For the Quarter ended September 30,
1.01
$                 
0.08
0.93
$      
0.08
0.85
$       
Diluted Earnings Per Share
0.82
$                
0.01
0.81
$      
(0.03)
0.78
$         
19.2%
9.0%
For the Quarter ended December 31,
0.71
$                 
-
0.71
$      
(0.10)
0.81
$       
Diluted Earnings Per Share
0.74
$                
0.01
0.73
$      
(0.01)
0.72
$         
-1.4%
12.5%
For the Year ended December 31,
3.31
$                 
-
3.31
$      
0.15
3.16
$       
Diluted Earnings Per Share
2.86
$                
(0.03)
2.89
$      
(0.09)
2.80
$         
18.2%
12.9%
(1)
Refer to schedule 11 and 12 in the 2008 Full Year Earnings Release.
(2)
For details on the Pro-Forma adjustments, please refer to the schedule 14 in the 2008 Full Year Earnings Release.
% Change on Diluted
Earnings Per Share
2008
2007
(3)
Effective
January
1,
2009,
PMI
adopted
the
provisions
of
amended
FASB
authoritative
guidance
which
requires
that
unvested
share-based
payment
awards
that
contain
nonforfeitable
rights
to
dividends
are
participating
securities and therefore shall be included in the earnings per share calculation pursuant to the two-class method.

91
(in millions USD rounded, except ratios)
PHILIP MORRIS INTERNATIONAL
Reconciliation of Non-GAAP Measures
Calculation of Net Debt to EBITDA Ratio
March 31,
September 30,
2008
2009
April~December
January~March
12 months
October~December
January~September
12 months
2007
2008
rolling
2008
2009
rolling
Earnings before income tax
7,033
$             
2,449
$             
9,482
$     
2,120
$                     
7,027
$                     
9,147
$              
Interest expense, net
-
75
75
106
572
678
Amortization & Depreciation
585
201
786
217
607
824
EBITDA
7,618
$             
2,725
$             
10,343
$   
2,443
$                     
8,206
$                     
10,649
$             
March 31,
September 30,
2008
2009
Short-term borrowings
793
$        
313
$                  
Current portion of long-term debt
104
197
Long-term debt
6,643
13,741
Total debt
7,540
$     
14,251
$             
Less: Cash & cash equivalents
1,231
1,602
Net Debt
6,309
$     
12,649
$             
Ratio
Net Debt / EBITDA
0.61
1.19