REG-Philip Morris International Inc. Philip Morris International Inc. (PMI) Reports 2016 Third-Quarter Results; Reaffirms 2016 Full-Y
18/10/2016 12:11
- Part 4: For the preceding part double click ID:nBw9t8jD5c
Acquisitions
$ 1,120 $ — $ 1,120 $ 29 $ 1,091 $ — $ 1,091 European $ 1,045 $ — $ 1,045 7.2 % 4.4% 4.4%
Union
962 — 962 (127 ) 1,089 — 1,089 EEMA 1,002 — 1,002 (4.0 )% 8.7% 8.7%
761 — 761 57 704 — 704 Asia 690 — 690 10.3 % 2.0% 2.0%
224 — 224 (53 ) 277 — 277 Latin America 294 — 294 (23.8 )% (5.8)% (5.8)%
& Canada
$ 3,067 $ — $ 3,067 $ (94 ) $ 3,161 $ — $ 3,161 PMI Total $ 3,031 $ — $ 3,031 1.2 % 4.3% 4.3%
2016 2015 % Points Change
Adjusted Net Adjusted Adjusted Net Revenues Adjusted Adjusted Net Adjusted Adjusted Adjusted
Operating Revenues Operating Operating excluding Operating Operating Revenues Operating Operating Operating
Companies excluding Companies Companies Excise Taxes, Companies Companies excluding Companies Companies Companies
Income Excise Income Income Currency & Income Income Excise Income Income Income
excluding Taxes & Margin excluding Acquisitions (1) Margin Taxes (1) Margin Margin Margin
Currency Currency (1) excluding Currency & excluding excluding excluding
Currency Acquisitions Currency & Currency Currency &
Acquisitions Acquisitions
$ 1,091 $ 2,206 49.5 % $ 1,091 $ 2,206 49.5 % European $ 1,045 $ 2,123 49.2 % 0.3 0.3
Union
1,089 2,077 52.4 % 1,089 2,077 52.4 % EEMA 1,002 2,016 49.7 % 2.7 2.7
704 2,077 33.9 % 704 2,077 33.9 % Asia 690 1,984 34.8 % (0.9) (0.9)
277 818 33.9 % 277 818 33.9 % Latin America 294 804 36.6 % (2.7) (2.7)
& Canada
$ 3,161 $ 7,178 44.0 % $ 3,161 $ 7,178 44.0 % PMI Total $ 3,031 $ 6,927 43.8 % 0.2 0.2
(1) For the calculation of Net Revenues excluding Excise Taxes, currency and acquisitions, refer to Schedule 10.
Schedule 12
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 Quarters Ended September 30,
(Unaudited)
2016 2015 % Change
Reported Diluted EPS $ 1.25 $ 1.25 —%
Adjustments:
Asset impairment and exit costs — —
Tax items — (0.01 )
Adjusted Diluted EPS $ 1.25 $ 1.24 0.8%
Less:
Currency impact (0.04 )
Adjusted Diluted EPS, excluding Currency $ 1.29 $ 1.24 4.0%
Schedule 13
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Diluted EPS to Reported Diluted EPS, excluding Currency
For the Quarters Ended September 30,
(Unaudited)
2016 2015 % Change
Reported Diluted EPS $ 1.25 $ 1.25 —%
Less:
Currency impact (0.04 )
Reported Diluted EPS, excluding Currency $ 1.29 $ 1.25 3.2%
Schedule 14
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Reconciliation of Non-GAAP Measures
Adjustments for the Impact of Currency and Acquisitions
For the Nine Months Ended September 30,
($ in millions)
(Unaudited)
2016 2015 % Change in Net Revenues
excluding Excise Taxes
Net Less Net Less Net Less Net Net Less Net Total Excluding Excluding
Revenues Excise Revenues Currency Revenues Acquisi- Revenues Revenues Excise Revenues Currency Currency &
Taxes excluding excluding tions excluding Taxes excluding Acquisitions
Excise Excise Excise Excise
Taxes Taxes & Taxes, Taxes
Currency Currency &
Acquisitions
$ 20,664 $ 14,446 $ 6,218 $ (122 ) $ 6,340 $ — $ 6,340 European Union $ 19,916 $ 13,782 $ 6,134 1.4 % 3.4% 3.4%
13,650 8,448 5,202 (515 ) 5,717 — 5,717 EEMA 13,908 8,261 5,647 (7.9 )% 1.2% 1.2%
15,014 8,777 6,237 (126 ) 6,363 — 6,363 Asia 14,683 8,399 6,284 (0.7 )% 1.3% 1.3%
6,436 4,379 2,057 (427 ) 2,484 — 2,484 Latin America & Canada 7,030 4,693 2,337 (12.0 )% 6.3% 6.3%
$ 55,764 $ 36,050 $ 19,714 $ (1,190 ) $ 20,904 $ — $ 20,904 PMI Total $ 55,537 $ 35,135 $ 20,402 (3.4 )% 2.5% 2.5%
2016 2015 % Change in Operating Companies
Income
Operating Less Operating Less Operating Operating Total Excluding Excluding
Companies Currency Companies Acquisi- Companies Companies Currency Currency &
Income Income tions Income Income Acquisitions
excluding excluding
Currency Currency &
Acquisitions
$ 3,096 $ 5 $ 3,091 $ — $ 3,091 European Union $ 2,977 4.0 % 3.8% 3.8%
2,389 (449 ) 2,838 — 2,838 EEMA 2,721 (12.2 )% 4.3% 4.3%
2,288 (11 ) 2,299 — 2,299 Asia 2,421 (5.5 )% (5.0)% (5.0)%
677 (220 ) 897 — 897 Latin America & Canada 849 (20.3 )% 5.7% 5.7%
$ 8,450 $ (675 ) $ 9,125 $ — $ 9,125 PMI Total $ 8,968 (5.8 )% 1.8% 1.8%
Schedule 15
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Operating Companies Income to Adjusted Operating Companies Income &
Reconciliation of Adjusted Operating Companies Income Margin, excluding Currency and Acquisitions
For the Nine Months Ended September 30,
($ in millions)
(Unaudited)
2016 2015 % Change in Adjusted Operating Companies Income
Operating Less Adjusted Less Adjusted Less Adjusted Operating Less Adjusted Adjusted Adjusted Adjusted
Companies Asset Operating Currency Operating Acquisi- Operating Companies Asset Operating excluding excluding
Income Impairment Companies Companies tions Companies Income Impairment Companies Currency Currency &
& Exit Costs Income Income Income & Exit Income Acquisitions
excluding excluding Costs
Currency Currency &
Acquisitions
$ 3,096 $ — $ 3,096 $ 5 $ 3,091 $ — $ 3,091 European $ 2,977 $ — $ 2,977 4.0 % 3.8% 3.8%
Union
2,389 — 2,389 (449 ) 2,838 — 2,838 EEMA 2,721 — 2,721 (12.2 )% 4.3% 4.3%
2,288 — 2,288 (11 ) 2,299 — 2,299 Asia 2,421 — 2,421 (5.5 )% (5.0)% (5.0)%
677 — 677 (220 ) 897 — 897 Latin America 849 — 849 (20.3 )% 5.7% 5.7%
& Canada
$ 8,450 $ — $ 8,450 $ (675 ) $ 9,125 $ — $ 9,125 PMI Total $ 8,968 $ — $ 8,968 (5.8 )% 1.8% 1.8%
2016 2015 % Points Change
Adjusted Net Revenues Adjusted Adjusted Net Revenues Adjusted Adjusted Net Adjusted Adjusted Adjusted
Operating excluding Operating Operating excluding Operating Operating Revenues Operating Operating Operating
Companies Excise Companies Companies Excise Taxes, Companies Companies excluding Companies Companies Companies
Income Taxes & Income Income Currency & Income Income Excise Income Income Income
excluding Currency (1) Margin excluding Acquisitions (1) Margin Taxes (1) Margin Margin Margin
Currency excluding Currency & excluding excluding excluding
Currency Acquisitions Currency & Currency Currency &
Acquisitions Acquisitions
$ 3,091 $ 6,340 48.8 % $ 3,091 $ 6,340 48.8 % European Union $ 2,977 $ 6,134 48.5 % 0.3 0.3
2,838 5,717 49.6 % 2,838 5,717 49.6 % EEMA 2,721 5,647 48.2 % 1.4 1.4
2,299 6,363 36.1 % 2,299 6,363 36.1 % Asia 2,421 6,284 38.5 % (2.4) (2.4)
897 2,484 36.1 % 897 2,484 36.1 % Latin America 849 2,337 36.3 % (0.2) (0.2)
& Canada
$ 9,125 $ 20,904 43.7 % $ 9,125 $ 20,904 43.7 % PMI Total $ 8,968 $ 20,402 44.0 % (0.3) (0.3)
Schedule 16
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 Nine Months Ended September 30,
(Unaudited)
2016 2015 % Change
Reported Diluted EPS $ 3.38 $ 3.62 (6.6)%
Adjustments:
Asset impairment and exit costs — —
Tax items — (0.01 )
Adjusted Diluted EPS $ 3.38 $ 3.61 (6.4)%
Less:
Currency impact (0.32 )
Adjusted Diluted EPS, excluding Currency $ 3.70 $ 3.61 2.5%
Schedule 17
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Diluted EPS to Reported Diluted EPS, excluding Currency
For the Nine Months Ended September 30,
(Unaudited)
2016 2015 % Change
Reported Diluted EPS $ 3.38 $ 3.62 (6.6)%
Less:
Currency impact (0.32 )
Reported Diluted EPS, excluding Currency $ 3.70 $ 3.62 2.2%
Schedule 18
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Reconciliation of Non-GAAP Measures
Calculation of Total Debt to Adjusted EBITDA and Net Debt to Adjusted EBITDA Ratios
($ in millions, except ratios)
(Unaudited)
For the Year Ended
For the Year Ended
September 30, December 31,
2016 2015
October ~ December January ~ September 12 months
2015 2016 rolling
Net Earnings $ 1,298 $ 5,475 $ 6,773 $ 7,032
Equity (income)/loss in (36 ) (72 ) (108 ) (105 )
unconsolidated subsidiaries, net
Provision for Income Taxes 412 2,110 2,522 2,688
Interest expense, net 227 690 917 1,008
Depreciation and amortization 193 548 741 754
Extraordinary, unusual or non- 68 — 68 68
recurring expenses, net (1)
Adjusted EBITDA $ 2,162 $ 8,751 $ 10,913 $ 11,445
September 30, December 31,
2016 2015
Short-term borrowings $ 710 $ 825
Current portion of long-term debt 2,417 2,405
Long-term debt 26,960 25,250
Total Debt $ 30,087 $ 28,480
Less: Cash and cash equivalents 4,884 3,417
Net Debt $ 25,203 $ 25,063
Ratios:
Total Debt to Adjusted EBITDA 2.76 2.49
Net Debt to Adjusted EBITDA 2.31 2.19
(1) Asset Impairment and Exit Costs at Operating Income level.
Schedule 19
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Operating Cash Flow to Free Cash Flow and Free Cash Flow, excluding Currency
Reconciliation of Operating Cash Flow to Operating Cash Flow, excluding Currency
For the Quarters and Nine Months Ended September 30,
($ in millions)
(Unaudited)
For the Quarters Ended For the Nine Months Ended
September 30, September 30,
2016 2015 % Change 2016 2015 % Change
Net cash provided by operating activities (1) $ 3,092 $ 2,693 14.8% $ 5,928 $ 5,993 (1.1)%
Less:
Capital expenditures 254 223 734 636
Free cash flow $ 2,838 $ 2,470 14.9% $ 5,194 $ 5,357 (3.0)%
Less:
Currency impact (192 ) (2 )
Free cash flow, excluding currency $
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