EX-99.2 3 dex992.htm PHILIP MORRIS INTERNATIONAL INC. PRESENTATION SLIDES, DATED FEBRUARY 17, 2010 Philip Morris International Inc. Presentation Slides, dated February 17, 2010
Consumer Analyst Group of New York
(CAGNY) Conference
February 17, 2010
Hermann Waldemer
Chief Financial Officer
Philip Morris International
Exhibit 99.2

2
Introduction

Unless otherwise stated, we will be talking about results in the
fourth quarter or the full-year 2009 and comparing them with
the same period in 2008

References to PMI volumes refer to shipment data

Industry volume and market shares are the latest data
available from a number of internal and external sources

Organic volume refers to volume excluding acquisitions

Net revenues exclude excise taxes

Reconciliations of non-GAAP measures included in this
presentation to the most comparable GAAP measures are
provided at the end of this presentation, and are available on
our website

3
3
Forward-Looking and Cautionary Statements
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.

4
4
Agenda
Review of 2009 results
2010 business outlook
Superior brand portfolio
Cost savings and productivity improvements
Cash flow enhancement and capital structure
M&A
Shareholder returns

5
PMI Results
Source: PMI Financials
864.0
2009 Results
(units billion)
1 –
2%
-
1.5%
-
0.7%
Cigarette Volume
Excl.
Acquisitions
Actual
Mid to Long-Term
Annual Growth Targets
% Growth
2009 vs. 2008

6
PMI Results
25.0
2009 Results
($ billion)
4 –
6%
+ 5.3%
-
2.6%
Net Revenues
Excl. Curr. &
Acquisitions
Actual
Mid to Long-Term
Constant Currency
Annual Growth Targets
% Growth
2009 vs. 2008
Source: PMI Financials. See reconciliations to U.S. GAAP measures at the end of this presentation.

7
PMI Results
10.4
25.0
2009 Results
($ billion)
6 –
8%
+ 8.7%
-
1.9%
Adjusted OCI
(a)
4 –
6%
+ 5.3%
-
2.6%
Net Revenues
Excl. Curr. &
Acquisitions
Actual
Mid to Long-Term
Constant Currency
Annual Growth Targets
% Growth
2009 vs. 2008
(a)
Excludes asset impairment, exit and other costs
Source: PMI Financials. See reconciliations to U.S. GAAP measures at the end of this presentation.

8
PMI Results
3.29
10.4
25.0
2009
Results ($)
6 –
8%
+ 8.7%
-
1.9%
Adjusted OCI
(a)
10 –
12%
+ 15.4%
(b)
-
0.6%
Adjusted Diluted EPS
4 –
6%
+ 5.3%
-
2.6%
Net Revenues
Excl. Curr. &
Acquisitions
Actual
Mid to Long-Term
Constant Currency
Annual Growth Targets
% Growth
2009 vs. 2008
(a)
Excludes asset impairment, exit and other costs
(b)
Only excludes currency
Source: PMI Financials. See reconciliations to U.S. GAAP measures at the end of this presentation.

9
9
Agenda
Review of 2009 results
2010 business outlook
Superior brand portfolio
Cost savings and productivity improvements
Cash flow enhancement and capital structure
M&A
Shareholder returns

10
10
Cigarette Industry Volume
1,196
1,156
2,134
2,183
2,140
2,181
5,470
5,520
2007
2008
Non-OECD
OECD
(a)
China
(3.3)%
+2.3%
+1.9%
+0.9%
(a)
Excluding USA and duty-free
Note: Organization for Economic Co-operation and Development (“OECD”)
Source: PMI estimates 
(billion units)

11
11
Cigarette Industry Volume
1,196
1,156
1,130
2,134
2,183
2,141
2,140
2,181
2,289
5,470
5,520
5,560
2007
2008
2009
Non-OECD
OECD
(a)
China
(3.3)%
+2.3%
+1.9%
+0.9%
(2.2)%
(1.9)%
+5.0%
+0.7%
(a)
Excluding USA and duty-free
Note: Organization for Economic Co-operation and Development (“OECD”)
Source: PMI estimates 
(billion units)

12
Industry Volume Trends : OECD
Western Europe underlying trend: -2.5% to -3.0% a year
Central Europe was declining faster, driven by excise tax
increases related to EU accession, but volume decline
rate should in future be in line with Western Europe
Japan underlying trend : -3.5% to -4.0% a year
In 2010/11, Japan volume decline will depend on the
price/tax outcome
Source: PMI estimates 

13
Industry Volume Trends: Non-OECD
Driven by Russia (390 billion units in 2009) and Indonesia
(260 billion units)
Russian market grew by 3.5% in 2008, but declined by
2.7% in 2009
Indonesian market continued to grow in 2009 at previous
pace of 4-5% a year
Source: PMI estimates 

14
Industry Volume Trends: Outlook for 2010
Emerging markets in Asia, such as Indonesia, to grow
Volumes in Russia to gradually stabilize
Volatility in Ukraine and adverse impact of large tax-
driven price increases in Turkey
Western Europe to follow recent underlying volume trend
Central Europe trends to converge with Western Europe
Underlying volume decline in Japan, with additional
impact of tax increase, which is difficult to predict
Forecast for global industry volume, excluding China and
the United States, is decline of around 2% in 2010, in line
with 2009 trend
Source: PMI estimates 

15
PMI Volume Trends : 2010 and Beyond
Share improvements should enable us to outperform the
industry again in 2010
PMI organic volume performance in 2010 expected to be
similar to 2009, namely down around 1.5%
Progressive return to our 1% annual organic growth target
should be feasible, once the economic recovery translates
into higher employment levels and improved consumer
confidence, thanks to:
–
Excellent geographic footprint
–
Strength and breadth of our brand portfolio

16
Net Revenues
While volume is important, our prime focus is on growing
net revenues by 4-6% a year, excluding currency and
acquisitions
Key factors influencing net revenues are excise taxes
and prices

17
Excise Taxation
Rate of increase and structure are of paramount
importance
Desirable approach is regular, reasonable increases:
–
Government revenues are enhanced
–
Manageable from industry perspective
Large excise tax increases are disruptive and often have
unintended consequences, such as encouraging
contraband and counterfeit

18
Excise Taxation
Most governments implement reasonable rate increases
or participate in price increases through ad-valorem tax
elements:
-
Australia, Mexico and Russia are good examples of first approach
-
France and Italy are good examples of second approach
From time to time, some governments implement
unreasonable increases:
-
Brazil and Ukraine in 2009
-
Greece, Romania and Turkey in 2010

19
Excise Taxation -
Turkey
Government increased ad-valorem excise tax rate from
58% to 63%
Minimum excise tax was raised from TRL 2.05/pack to
TRL 2.65/pack
PMI increased retail prices in a magnitude that
safeguards our unit margins:
–
Marlboro
from
TRL
5.50/pack
to
TRL
7.00/pack
–
Lark
from TRL 3.50/pack to TRL 4.50/pack
Source: Turkish Ministry of Finance and PMSA

20
20
Excise Taxation -
Japan
Consumption tax of 5% to be left unchanged
Trade margins currently 10% of retail price
Unit revenue neutral pass-on retail price increase: 82 Yen 
per pack
Key PMI objective is to obtain pricing freedom
(Yen per pack of 20)
Current
Proposed
Variance
National Excise Tax
71.04
106.04
35.00
Local Excise Tax
87.44
122.44
35.00
Special Tobacco Tax
16.40
16.40
-
Total 
174.88
244.88
70.00
Source: Japanese Ministry of Finance and PMJKK

21
Excise Taxation
From a structural perspective, what is needed is a system
that protects government revenues and supports public
health objectives:
–
Specific excise taxes
–
Minimum excise taxes
–
Minimum reference prices
Today, one or more of these are in place in 23 of PMI’s
top 25 OCI markets
Source: PMI Corporate Affairs 

22
Excise Taxation –
European Union
Fiscal tool that limits
downtrading
Cap at 100%
of MPPC
No cap
Minimum Excise
Tax
Allows for almost specific
excise tax system
55.0%
76.5%
Maximum
Specific to Total
Tax
Escape clause if tax on
WAP above €
115/000 in
2014. Transition periods in
Central Europe
57% on MPPC
60% on WAP
Minimum Tax
Incidence
Transition until 2018 for
most Central Europe
countries
€
64/000 on
MPPC
€
90/000 on all
cigarettes
Minimum Tax
Yield
Technical changes as of
2011. New minima as of
2014
Today
2011
Implementation
Date
Comments
Old Directive
New Directive
Note: WAP is Weighted Average Price. MPPC is Most Popular Price Class.
Source: European Union Commission

23
Pricing Strategy
Visible, predictable excise taxation provides strong
framework to optimize pricing decisions
Key is balanced pricing, on a market by market basis,
taking into account:
–
Consumer affordability
–
Competitive environment
–
Margin enhancement vs. volume/mix impact

24
Pricing Variance vs. Volume/Mix (2009)
1,997
(572)
0
2,000
Pricing
Volume / Mix
Note: variances at level of OCI
Source: PMI Financials
($ million)
3.5x

25
Pricing
In last twelve months, PMI implemented price increases
notably in:
As of end of January, two-thirds of pricing embedded in
our 2010 EPS guidance already implemented
Argentina
Brazil
Canada
Dominican Rep.
Mexico
Australia
Indonesia
Malaysia
Pakistan
Philippines
Romania
Russia
Saudi Arabia
Serbia
Turkey
Ukraine
France
Germany
Italy
Poland
Spain
UK
LA & Canada
Asia
EEMA
EU
Source: PMI Financials

26
26
Russia –
PMI Shipment Volume by Price Segment
25%
31%
44%
25%
29%
46%
22%
27%
51%
21%
25%
54%
Premium
Mid
Low/Super-low
Source: PMI Financials
H1, 2008
H2, 2008
H1, 2009
H2, 2009

27
Russia
–
PMI Market Share
24.9
24.7
25.0
25.3
25.1
25.3
25.6
25.7
22
24
26
28
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Source: A.C. Nielsen
2008
2009
(%)

28
Ukraine –
PMI Shipment Volume by Price Segment
22%
35%
43%
23%
36%
41%
21%
36%
43%
22%
35%
43%
Source: PMI Financials
H1, 2008
H2, 2008
H1, 2009
H2, 2009
Premium
Mid
Low/Super-low

29
Ukraine
–
PMI Market Share
34.7
35.2
35.5
35.3
35.8
35.8
35.6
36.2
32
34
36
38
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Source: A.C. Nielsen
(%)
2008
2009

30
Spain –
Price Segmentation
19.0
19.6
20.2
18.1
16.7
17.3
17.1
15.8
16.1
15.8
16.0
16.1
16.3
16.4
14.7
15.1
0
40
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2008
Source: PMI estimates 
Share
of
Market
2009
(%)
Premium
"3.60
Mid
!3.35

31
Spain –
PMI Market Share
31.8
31.6
32.3
31.9
31.8
31.8
32.1
31.7
28
30
32
34
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
(%)
2008
2009
Source: PMI estimates 

32
32
Agenda
Review of 2009 results
2010 business outlook
Superior brand portfolio
Cost savings and productivity improvements
Cash flow enhancement and capital structure
M&A
Shareholder returns

33
20.8
21.0
21.3
18
24
2008
2009
Q4
PMI Share Developments
34.5
34.9
35.2
30
36
2008
2009
Q4
(a)
Excluding USA and duty-free
(b)
Excluding PRC and duty-free
Note: For definition of OECD countries, refer to PMI’s Registration Statement on Form 10 (page 68) dated March 5, 2008
Source: PMI estimates
OECD markets
(a)
Non-OECD markets
(b)
2009
2009
(%)
(%)

34
Marlboro
The only truly global cigarette brand
Volume grew by 4.3% in Asia and by double digits in
North Africa in 2009
Global volume adversely impacted in 2009 by:
–
Continued overall market contractions in developed markets
–
Consumer downtrading in selected markets
Marlboro
share
in
Japan
was
up
0.4
points
to
10.5%
in
2009
Market share gains in many markets, driven by:
–
New Marlboro architecture
–
Innovative line extensions
Source:
PMI
Financials,
Tobacco
Institute
of
Japan,
A.C.
Nielsen
and
PMI
estimates 

35
35
Marlboro
Flavor
Line

36
36
Marlboro Red

Upgraded packaging

Positive consumer reaction

Introduced in nine markets
(32% of worldwide volume)

By year end, expect to cover
75% of worldwide volume
0
2
4
6
8
10
Masculine
That I like
Beautiful
That goes
well with me
Original
In the spirit
of the times
High-End
Elegant/chic
Modern
Innovative
Refined
Feminine
Worth
its price
Lets me
stand out
Proud to show
That lacks
character
New
Pack
Perception
Results
–
France
:
:
New Pack
(n=100)
Old Pack
(n=100)
: Significant Evolution
Source: PMI market research in France (POS study 2 months after launch in Montpellier)

37
37
Marlboro Filter
and Flavor Plus

First introduced in Korea in November 2007

Currently available in 38 markets worldwide

Helping to build PMI share in ultra-light and 1mg
segments

Positive “halo”
effect on parent brand
Source: A.C. Nielsen and PMI estimates 

38
38
28%
22%
17%
41%
32%
25%
31%
46%
58%
Marlboro
Flavor
Plus
–
Slovakia
6mg variant launched in October 2008
0.7% share of market in Q4, 2009
47%
53%
35-64
25-34
18-24
Age Profile
Marlboro
Flavor Plus
Marlboro
Family
Total
Market
Cannibalization Rate
Competition
Marlboro
Source: PM Slovakia market research

39
39
Marlboro
Gold
Line

40
40
Marlboro Gold Touch
Slightly slimmer cigarette
Novel packaging
Launched in 2009 in 8
markets
In Q4, 2009, Marlboro Gold
Touch
achieved
market
share of:
–
1.5% in Italy
–
0.8% in Romania
–
0.6% in Greece
Source: A.C. Nielsen and PMI estimates 

41
41
52%
27%
14%
34%
41%
25%
14%
32%
61%
Marlboro
Gold
Touch
–
Russia
Introduced in 6mg (Gold Touch) and 4mg (Fine Touch) in
Moscow in July 2009
In December, combined 0.5% share in Moscow
88%
7%
5%
35-64
25-34
18-24
Age Profile
Marlboro
Touch
Marlboro
Family
Total
Market
Cannibalization Rate
Competition
Marlboro
Source: A.C. Nielsen and PM Russia market research
Other PMI
Brands

42
42
Marlboro
Fresh
Line
Up
Innovative technological
approach include:
–
Different levels of
mentholation
–
Mentholated threads in the
filter
–
Capsules in the filter
Delivers different
freshness sensations

43
43
Marlboro
Black
Menthol
-
Japan
Share of Market
Source: Tobacco Institute of Japan
1mg
Black Menthol
(8 mg)
(%)
0.8
1.0
1.0
1.0
1.0
1.0
0.3
0.3
0.3
0.8
1.0
1.0
1.3
1.3
1.3
0
1.5
Q3
Q4
Q1
Q2
Q3
Q4
2008
2009

44
Marlboro -
Japan
Source: Tobacco Institute of Japan
Marlboro
Share of Market
7.0
8.0
8.4
8.9
9.2
9.7
9.9
9.9
10.1
10.5
6
8
10
12
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
(%)

45
45
Menthol -
Mexico
4.6
5.0
5.9
0
10
2007
2008
2009
58.9
62.7
55.9
17.4
17.3
26.1
77.9
81.7
83.0
0
85
2007
2008
2009
Menthol Share of Market
PMI Share of Segment
(%)
(%)
Source: PMI estimates 
Other
Benson &
Hedges
Marlboro

46
21
19
11
7
7
4
0
25
Russia
Japan
Italy
Ukraine
Spain
Indonesia
46
Marlboro
Innovation
New Line Extensions as % Marlboro
Volume
(Q4, 2009)
Source: PMI Financials
(%)

47
7.5
3.2
2.8
2.3
1.9
8.4
4.3
2.9
2.3
2.3
0
10
Turkey
Korea
Russia
Japan
Ukraine
47
Parliament
Volume stable at 37.3 billion
units
Super-premium Parliament
Reserve
(Eastern Europe),
Platinum
and Parliament
Nouveau
(Japan)
reinforcing
luxury image
Share of Market
(%)
2008
2009
Source: PMI Financials, A.C. Nielsen, Korea Research Center and Tobacco Institute of Japan

48
48
L&M
Our second largest brand, positioned in mid-price in
emerging markets and low-price in developed markets
Volume declined by 1.7% in 2009 to 90.8 billion units, an
improved performance compared to the previous two
years
Volume grew by 19% last year in the Middle East and
Africa
Source: PMI Financials

49
6.7
2.6
2.3
1.5
1.3
0
8
Slovak.
Czech
Sweden
Spain
Germ.
L&M –
EU Region

Volume grew by close to 9%
in EU Region in 2009 and by
17% in the fourth quarter
(a)
Through end November
Source: PMI Financials, A.C. Nielsen and PMI estimates 
Share
of
Market
Gains
2009 vs. 2008
(a)
(pp)

50
50
L&M –
EU Region
14.7
14.4
13.9
8.8
8.5
7.2
7.1
6.7
0
15
Poland
Slovakia
Belgium
Germany
Sweden
Czech
Republic
Neth.
Spain
Share of Market Q4, 2009
(%)
(a)
Through end November
Source: A.C. Nielsen and PMI estimates 
(a)

51
Brand Portfolio
Mid-Price
Premium &
Above
Local Heritage
International
Low-Price

52
9.7
10.4
10.5
10.9
0
12
H1
H2
H1
H2
52
A Mild -
Indonesia
Premium price
Leading brand in Indonesia
Fastest growing top 10
brand
2008
2009
Source: A.C. Nielsen
(%)
Share of Market

53
3.8
3.5
3.0
4.3
4.3
5.4
0.7
2.3
3.2
8.8
10.1
11.6
0
12
2007
2008
2009
53
Delicados -
Mexico
Share of Market
Source: PMI estimates 
Filter
Box
Filter
Soft
Non-
Filter
(%)

54
54
Bond Street -
Russia
20.5
20.5
21.0
21.7
21.6
22.1
23.2
24.7
20
25
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Source: A.C. Nielsen
Share of Low Price Segment
(%)
2008
2009

55
55
Agenda

Review of 2009 results

2010 business outlook

Superior brand portfolio

Cost savings and productivity improvements

Cash flow enhancement

M&A

Shareholder returns

56
450
250
1,550
850
Manufacturing
Productivity
G&A + Other
EU Program
Total
($ million)
Forecast
Cumulative
Gross
Cost
Savings
(2008-10)
Productivity and Cost Savings Program
Source: PMI Financials

57
Tobacco
As previously communicated, leaf cost increases $200
million
higher
than
anticipated
for
2008
-
2010
Objective to stabilize leaf supplies going forward:
–
PMI requirements quite predictable
–
Farmers prefer consistent prices
Balance between supply and demand should be
achievable on a permanent basis
Tobacco leaf supply balanced in 2009 and expected to be
in 2010

58
58
Agenda
Review of 2009 results
2010 business outlook
Superior brand portfolio
Cost savings and productivity improvements
Cash flow enhancement and capital structure
M&A
Shareholder returns

59
Free
Cash
Flow
(a)
1.5
6.8
8.6
7.1
                   2008                  
Actual
                    2009                  
Actual
                     2009                 
Excluding Currency
(a)
Free cash flow equals net cash provided by operating activities less capital expenditures. In 2009, net cash provided by operating activities was
$7,884
million
and
capital
expenditures
were
$715
million.
In
2008,
net
cash
provided
by
operating
activities
was
$7,935
million
and
capital
expenditures were $1,099 million
Source: PMI Financials
+26%
vs. 2008
($ billions)
4.9%

60
Cumulative Operating Cash Flow (2008-2010)
6.6
7.9
7.3
7.9
7.8
21.7
15.8
March 2008
Actual
2008
2009
2010
($ billion)
Source: PMI Financials

61
Cash Flow Enhancement Program
Our
goal
is
to
generate
an
additional
$750
million
-
$1
billion over three years through improvements in working
capital:
–
Supply chain initiatives
–
Tobacco leaf inventory durations
–
Improved forestalling regulations
–
Tighter finished goods inventory management
Systems investment of $15 million to improve working
capital management

62
Capital Structure
Tremendous cash flow underpins our strong balance
sheet
Long-term credit ratings: A2 / A / A
Short-term credit ratings: P-1 / A-1 / F1
Over $10 billion well-laddered bonds with an attractive
weighted average cost of long-term debt of 5.6%
Access to tier 1 commercial paper market
Source: PMI Financials

63
Capital Structure
Goal is to preserve current credit ratings whilst having
flexibility to make acquisitions

64
64
Agenda
Review of 2009 results
2010 business outlook
Superior brand portfolio
Cost savings and productivity improvements
Cash flow enhancement and capital structure
M&A
Shareholder returns

65
Acquisitions

Complement organic growth

Often provide unique opportunities to enter new markets
or significantly step up our presence:
-
Sampoerna in Indonesia
-
Lakson in Pakistan
-
Rothmans Inc. in Canada
-
Coltabaco in Colombia
-
Interval
(fine cut) in France and other EU markets
-
Petterøes
(fine
cut)
in
Norway
-
Pipe tobacco and nasal snuff in South Africa
-
Snus joint venture with Swedish Match

66
24%
66
Top 10 Emerging Markets –
PMI Share
16%
2009 Volume
:
1.38 trillion units
(a)
Top ten emerging markets in 2009 excluding China are Russia, Indonesia, Ukraine, Turkey, India, Brazil, Philippines, Egypt, Vietnam and Pakistan
Source: A.C. Nielsen and PMI estimates
PMI
PMI
2004 Volume
:
1.30 trillion units

67
67
Top 10 Emerging Markets –
PMI Market Shares
25
29
36
43
14
29
16
41
0
50
Russia
Indonesia
Ukraine
Turkey
Brazil
Philippines
Egypt
Pakistan
Share of Market (2009)
(%)
Note: PMI has less than 1% market share in India (#5) and Vietnam (#9)
Source: A.C. Nielsen and PMI estimates 
#10
#8
#7
#6
#4
#3
#2
#1
#2
#2
#2
#2
#1
#1
#1
#2

68
68
Agenda
•
Review of 2009 results
•
2010 volume and business outlook
•
Superior brand portfolio
•
Cost savings and productivity improvements
•
Cash flow enhancement
•
M&A
•
Shareholder returns

69
Dividend Yield
1.8%
2.5%
2.8%
2.8%
2.9%
3.0%
3.0%
3.3%
3.4%
3.5%
3.5%
3.5%
3.7%
4.3%
4.4%
4.5%
4.8%
5.5%
Heineken
Bayer
Nestle
Roche
Coca-Cola
PepsiCo
Johnson & Johnson
Diageo
Unilever
Pfizer
McDonalds
Novartis
Imperial Tobacco
Kraft
BAT
GlaxoSmithKline
PMI
Vodafone
December 31, 2009
Note: Dividend yield represents the annualized dividend at 12/31/09 over the closing share price on that date. The share price for PMI was $48.19 as
of 12/31/09. The annualized dividend on 12/31/09 was $2.32
Source: Centerview Partners, based on company filings and FactSet

70
Share Repurchases
New share repurchase program of $12 billion May 2010
through April 2013
Total 2010 spending expected to be $4 billion
Strikes optimal balance between rewarding shareholders
and retaining financial flexibility
Source: PMI News Release

71
Shareholder Returns
In 2009, $10 billion returned to shareholders through
dividends and share repurchases
Since March 2008 spin-off, more than $17 billion returned
to shareholders, representing 19% of our current market
capitalization
Source: PMI Financials

72
Revenues
and
Income
Growth
–
Peer
Comparison
4.0
5.0
7.5
0
12
PMI
PepsiCo
Coca-Cola
2009 Revenue Growth
(excl. currency)
(%)
6.0
7.0
11.1
0
15
PMI
Coca-Cola
PepsiCo
2009 Adjusted Income Growth
(excl. currency)
(%)
(a)
Currency neutral net operating revenue growth after considering items impacting comparability and structural changes
(b)
Adjusted
OCI
growth,
excluding
the
impact
of
currency.
Reported
OCI
for
2009
was
$10,271
million,
adjusting
for
$164
million
of
one-time
costs
and for $1,390 million of negative currency impact.  Adjusted OCI excluding currency was $11,825 million for 2009.  OCI in 2008 was $10,434
million, adjusting for $208 million of one-time costs, results in a growth rate of 11.1% for adjusted OCI, excluding currency
(c)
Currency
neutral
operating
income
growth
after
considering
items
impacting
comparability
(d)
Core division operating profit growth, excluding currency
Source: Centerview Partners, based on company reports
(a)
(b)
(c)
(d)

73
73
2010 EPS Guidance
Expect to reach or surpass all our currency neutral
financial forecasts in 2010
At prevailing exchange rates, reported EPS guidance of
$3.75 -
$3.85 represents an increase of 16-19%
Reported EPS growth rate ex-currency is 12-15%
Against adjusted EPS of $3.29 in 2009, reported EPS
guidance represents a growth rate of 11-14%, excluding
currency
Source: PMI Financials

74
P/E Ratios –
Peer Comparison
17.6
16.3
14.2
10
20
Coca-Cola
PepsiCo
PMI
2009
(%)
15.8
14.5
12.3
10
20
Coca-Cola
PepsiCo
PMI
2010 Estimates
(%)
Source: Centerview Partners, based on FactSet

Consumer Analyst Group of New York
(CAGNY) Conference
February 17, 2010
Hermann Waldemer
Chief Financial Officer
Philip Morris International
QUESTIONS & ANSWERS

76
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Adjustments for Impact of Currency and Acquisitions
For the Years Ended December 31,
(in millions)
(Unaudited)
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
28,550
$     
19,509
$  
9,041
$      
(856)
$      
9,897
$       
61
$       
9,836
$          
European Union
30,265
$     
20,577
$  
9,688
$        
(6.7)%
2.2%
1.5%
13,865
       
7,070
      
6,795
        
(1,373)
8,168
         
41
8,127
            
EEMA
14,817
       
7,313
      
7,504
          
(9.4)%
8.8%
8.3%
12,413
       
5,885
      
6,528
        
(41)
6,569
         
-
6,569
            
Asia
12,222
       
6,037
      
6,185
          
5.5%
6.2%
6.2%
7,252
         
4,581
      
2,671
        
(328)
2,999
         
462
2,537
            
Latin America & Canada
6,336
         
4,008
      
2,328
          
14.7%
28.8%
9.0%
62,080
$     
37,045
$  
25,035
$    
(2,598)
$   
27,633
$     
564
$     
27,069
$        
PMI Total
63,640
$     
37,935
$  
25,705
$      
(2.6)%
7.5%
5.3%
Reported
Operating
Companies
Income
Less
Currency
Reported
Operating
Companies
Income
excluding
Currency
Less
Acquisi-
tions
Reported
Operating
Companies
Income
excluding
Currency &
Acquisitions
Reported
Operating
Companies
Income
    
Reported
Reported
excluding
Currency
Reported
excluding
Currency &
Acquisitions
4,506
$       
(481)
$      
4,987
$       
40
$       
4,947
$          
European Union
4,738
$        
(4.9)%
5.3%
4.4%
2,663
         
(893)
3,556
18
3,538
            
EEMA
3,119
          
(14.6)%
14.0%
13.4%
2,436
         
146
2,290
-
2,290
            
Asia
2,057
          
18.4%
11.3%
11.3%
666
            
(162)
828
202
626
               
Latin America & Canada
520
             
28.1%
59.2%
20.4%
10,271
$     
(1,390)
$   
11,661
$     
260
$     
11,401
$        
PMI Total
10,434
$      
(1.6)%
11.8%
9.3%
2009
2008
% Change in Reported Net
Revenues excluding Excise Taxes
2009
2008
% Change in Reported Operating
Companies Income

77
Reported
Operating
Companies
Income
Less
Asset
Impairment/
Exit Costs
and Other
Adjusted
Operating
Companies
Income
Less
Currency
Adjusted
Operating
Companies
Income
excluding
Currency
Less
Acquisi-
tions
Adjusted
Operating
Companies
Income
excluding
Currency &
Acquisitions
Reported
Operating
Companies
Income
Less
Asset
Impairment/
Exit Costs
and Other
Adjusted
Operating
Companies
Income
Adjusted
Adjusted
excluding
Currency
Adjusted
excluding
Currency &
Acquisitions
4,506
$       
(29)
$            
4,535
$       
(481)
$     
5,016
$       
40
$            
4,976
$         
European Union
4,738
$       
(66)
$            
4,804
$        
(5.6)%
4.4%
3.6%
2,663
         
-
                 
2,663
         
(893)
       
3,556
         
18
             
3,538
           
EEMA
3,119
         
(1)
               
3,120
          
(14.6)%
14.0%
13.4%
2,436
         
-
                 
2,436
         
146
         
2,290
         
-
                
2,290
           
Asia
2,057
         
(14)
             
2,071
          
17.6%
10.6%
10.6%
666
            
(135)
            
(1)
801
            
(162)
       
963
            
202
            
761
              
Latin America & Canada
520
            
(127)
            
(2)
647
            
23.8%
48.8%
17.6%
10,271
$     
(164)
$          
10,435
$     
(1,390)
$   
11,825
$     
260
$          
11,565
$       
PMI Total
10,434
$     
(208)
$          
10,642
$      
(1.9)%
11.1%
8.7%
% Points Change
Adjusted
Operating
Companies
Income
excluding
Currency
Net
Revenues
excluding
Excise
Taxes &
Currency
(3)
Adjusted
Operating
Companies
Income
Margin
excluding
Currency
Adjusted
Operating
Companies
Income
Net
Revenues
excluding
Excise
Taxes
(3)
Adjusted
Operating
Companies
Income
Margin
Adjusted
Operating
Companies
Income
Margin
excluding
Currency
5,016
$       
9,897
$       
50.7%
European Union
4,804
$       
9,688
$        
49.6%
1.1
pp
3,556
         
8,168
         
43.5%
EEMA
3,120
         
7,504
          
41.6%
1.9
pp
2,290
         
6,569
         
34.9%
Asia
2,071
         
6,185
          
33.5%
1.4
pp
963
            
2,999
         
32.1%
Latin America & Canada
647
            
2,328
          
27.8%
4.3
pp
11,825
$     
27,633
$     
42.8%
PMI Total
10,642
$     
25,705
$      
41.4%
1.4
pp
2009
2008
2009
2008
% Change in Adjusted Operating
Companies Income
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Operating Companies Income to Adjusted Operating Companies Income &
Reconciliation of Adjusted Operating Companies Income Margin Excluding Currency
For the Years Ended December 31,
(in millions)
(Unaudited)
(1) Represents 2009 Colombian investment and cooperation agreement charge.
(2) Represents 2008 equity loss from RBH legal settlement ($124 million) and asset impairment and exit costs ($3 million).
(3) For the calculation of net revenues excluding excise taxes and currency, refer to previous slide.

78
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS and Adjusted Diluted EPS, Excluding Currency
For
the
Years
Ended
December
31,
(Unaudited)
2009
2008
% Change
Reported Diluted EPS
3.24
$               
3.31
$           
(2.1)%
Less:
Colombian investment and cooperation agreement charge
(0.04)
                
-
              
Asset impairment and exit costs
(0.01)
                
(0.02)
           
Equity loss from RBH legal settlement
-
                    
(0.06)
           
Tax items
-
                    
0.08
             
Adjusted Diluted EPS
3.29
$               
3.31
$           
(0.6)%
Less:
Currency Impact
(0.53)
                
Adjusted Diluted EPS, Excluding Currency
3.82
$               
3.31
$           
15.4%

79
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Diluted EPS to Reported Diluted EPS, Excluding Currency
For
the
Years
Ended
December
31,
(Unaudited)
2009
2008
% Change
Reported Diluted EPS
3.24
$               
3.31
$           
(2.1)%
Less:
Currency Impact
(0.53)
                
Reported Diluted EPS, Excluding Currency
3.77
$               
3.31
$           
13.9%