REG-Philip Morris International Inc. Philip Morris International Inc. (PMI) Reports 2017 Second-Quarter Results; Revises 2017 Full-Ye
20/07/2017 12:07
- Part 4: For the preceding part double click ID:nBw7CWzW6c
((1))
Special Items:
2016 Asset impairment and exit costs —
2016 Tax items —
2017 Asset impairment and exit costs —
2017 Tax items 0.04
Currency (0.11 )
Interest 0.02
Change in tax rate 0.02
Operations 0.07 ((2))
2017 Diluted Earnings Per Share $ 2.17 ((1))
(1) Basic and diluted EPS were calculated using the following (in
millions):
YTD June YTD June
2017 2016
Net Earnings attributable to PMI $ 3,371 $ 3,318
Less distributed and undistributed earnings attributable
to share-based payment awards 8 9
Net Earnings for basic and diluted EPS $ 3,363 $ 3,309
Weighted-average shares for basic EPS 1,552 1,551
Plus Contingently Issuable Performance Stock Units (PSUs) 1 —
Weighted-average shares for diluted EPS 1,553 1,551
(2) Includes the impact of shares outstanding and share-based
payments
Schedule 9
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Condensed Balance Sheets
($ in millions, except ratios)
(Unaudited)
June 30, December 31,
2017 2016
Assets
Cash and cash equivalents $ 6,197 $ 4,239
All other current assets 12,235 13,369
Property, plant and equipment, net 6,629 6,064
Goodwill 7,614 7,324
Other intangible assets, net 2,527 2,470
Investments in unconsolidated subsidiaries 1,072 1,011
Other assets 2,386 2,374
Total assets $ 38,660 $ 36,851
Liabilities and Stockholders' (Deficit) Equity
Short-term borrowings $ 898 $ 643
Current portion of long-term debt 4,254 2,573
All other current liabilities 12,091 13,251
Long-term debt 26,595 25,851
Deferred income taxes 1,362 1,897
Other long-term liabilities 3,737 3,536
Total liabilities 48,937 47,751
Total PMI stockholders' deficit (12,008 ) (12,688 )
Noncontrolling interests 1,731 1,788
Total stockholders' deficit (10,277 ) (10,900 )
Total liabilities and stockholders' (deficit) equity $ 38,660 $ 36,851
Total debt $ 31,747 $ 29,067
Total debt to Adjusted EBITDA 2.76 ((1)) 2.51 ((1))
Net debt to Adjusted EBITDA 2.22 ((1)) 2.15 ((1))
(1) For the calculation of Total Debt to Adjusted EBITDA and Net Debt to
Adjusted EBITDA ratios, refer to Schedule 18.
Schedule 10
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Reconciliation of Non-GAAP Measures
Adjustments for the Impact of Currency and Acquisitions
For the Quarters Ended June 30,
($ in millions)
(Unaudited)
2017 2016 % Change in Net Revenues excluding Excise Taxes
Net Less Excise Taxes Net Revenues excluding Excise Taxes Less Currency Net Revenues excluding Excise Taxes & Currency Less Acquisitions Net Revenues excluding Excise Taxes, Currency & Acquisitions Net Revenues Less Excise Taxes Net Revenues excluding Excise Taxes Total Excluding Currency Excluding Currency & Acquisitions
Revenues
$ 6,921 $ 4,811 $ 2,110 $ (92 ) $ 2,202 $ — $ 2,202 European Union $ 7,134 $ 4,979 $ 2,155 (2.1 )% 2.2 % 2.2 %
4,492 2,817 1,675 (62 ) 1,737 — 1,737 EEMA 4,531 2,867 1,664 0.7 % 4.4 % 4.4 %
5,367 2,983 2,384 (21 ) 2,405 — 2,405 Asia 5,212 3,079 2,133 11.8 % 12.8 % 12.8 %
2,539 1,791 748 (20 ) 768 — 768 Latin America & Canada 2,164 1,467 697 7.3 % 10.2 % 10.2 %
$ 19,319 $ 12,402 $ 6,917 $ (195 ) $ 7,112 $ — $ 7,112 PMI Total $ 19,041 $ 12,392 $ 6,649 4.0 % 7.0 % 7.0 %
2017 2016 % Change in Operating Companies Income
Operating Companies Income Less Operating Companies Income excluding Currency Less Operating Companies Income excluding Currency & Acquisitions Operating Companies Income Total Excluding Currency Excluding Currency & Acquisitions
Currency Acquisitions
$ 969 $ (61 ) $ 1,030 $ — $ 1,030 European Union $ 1,070 (9.4 )% (3.7 )% (3.7 )%
733 (87 ) 820 — 820 EEMA 794 (7.7 )% 3.3 % 3.3 %
836 (25 ) 861 — 861 Asia 749 11.6 % 15.0 % 15.0 %
268 (26 ) 294 — 294 Latin America & Canada 224 19.6 % 31.3 % 31.3 %
$ 2,806 $ (199 ) $ 3,005 $ — $ 3,005 PMI Total $ 2,837 (1.1 )% 5.9 % 5.9 %
Schedule 11
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Selected Financial Data by Product Category
For the Quarters Ended June 30,
($ in millions) / (Unaudited)
2017 2016 % Change in Combustible Products Net Revenues excluding Excise Taxes
Net Revenues (1) Less Net Revenues excluding Excise Taxes Less Net Revenues excluding Excise Taxes & Currency Less Net Revenues excluding Excise Taxes, Currency & Acquisitions Combustible Products Net Revenues (1) Less Excise Taxes (3) Net Revenues excluding Excise Taxes Total Excluding Currency Excluding Currency & Acquisitions
Excise Currency Acquisitions
Taxes (3)
$ 6,862 $ 4,802 $ 2,060 $ (89 ) $ 2,150 $ — $ 2,150 European Union $ 7,122 $ 4,979 $ 2,143 (3.8 )% 0.3 % 0.3 %
4,474 2,815 1,659 (61 ) 1,720 — 1,720 EEMA 4,531 2,867 1,664 (0.3 )% 3.4 % 3.4 %
4,816 2,981 1,835 (19 ) 1,854 — 1,854 Asia 5,100 3,079 2,022 (9.2 )% (8.3 )% (8.3 )%
2,538 1,790 748 (21 ) 768 — 768 Latin America & Canada 2,164 1,467 697 7.3 % 10.2 % 10.2 %
$ 18,691 $ 12,388 $ 6,302 $ (190 ) $ 6,493 $ — $ 6,493 Total Combustible Products $ 18,917 $ 12,391 $ 6,526 (3.4 )% (0.5 )% (0.5 )%
2017 2016 % Change in Reduced-Risk Products Net Revenues excluding Excise Taxes
Net Revenues (2) Less Net Revenues excluding Excise Taxes Less Net Revenues excluding Excise Taxes & Currency Less Net Revenues excluding Excise Taxes, Currency & Acquisitions Reduced-Risk Products Net Revenues (2) Less Excise Taxes (3) Net Revenues excluding Excise Taxes Total Excluding Currency Excluding Currency & Acquisitions
Excise Currency Acquisitions
Taxes (3)
$ 59 $ 9 $ 50 $ (2 ) $ 52 $ — $ 52 European Union $ 12 1 $ 11 +100% +100% +100%
18 2 16 — 16 — 16 EEMA — — — +100% +100% +100%
551 2 549 (2 ) 551 — 551 Asia 111 — 111 +100% +100% +100%
1 0 1 — 1 — 1 Latin America & Canada 1 0 0 +100% +100% +100%
$ 628 $ 13 $ 615 $ (4 ) $ 620 $ — $ 620 Total Reduced-Risk Products $ 124 $ 1 $ 123 +100% +100% +100%
$ 19,319 $ 12,402 $ 6,917 $ (195 ) $ 7,112 $ — $ 7,112 PMI Total $ 19,041 $ 12,392 $ 6,649 4.0 % 7.0 % 7.0 %
(1) Net revenue amounts for our combustible products refer to the
operating revenues generated from the sale of these products, net of
sales and promotion incentives. These net revenue amounts consist of
the sale of our cigarettes and other tobacco products combined.
Other tobacco products primarily include tobacco for roll-your-own
and make-your-own cigarettes, pipe tobacco, cigars and cigarillos
and do not include reduced-risk products.
(2) Net revenue amounts for our reduced-risk products refer to the operating
revenues generated from the sale of these products, net of sales and promotion
incentives. These net revenue amounts consist of the sale of our heated
tobacco units, our IQOS devices and related accessories, and other
nicotine-containing products, which primarily include our e-vapor products.
Reduced-risk products is the term we use to refer to products that present,
are likely to present, or have the potential to present less risk of harm to
smokers who switch to these products versus continued smoking. We have a range
of reduced-risk products in various stages of development, scientific
assessment and commercialization. Because our reduced-risk products do not
burn tobacco, they produce far lower quantities of harmful and potentially
harmful compounds than found in cigarette smoke.
(3) PMI often collects excise taxes from its customers and then remits
them to governments, and, in those circumstances, PMI includes the
excise taxes in its net revenues and in excise taxes on products. In
some jurisdictions, including Japan, PMI is not responsible for
collecting excise taxes.
Note: Sum of product categories or Regions might not foot to PMI total due
to rounding.
Schedule 12
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 Quarters Ended June 30,
($ in millions)
(Unaudited)
2017 2016 % Change in Adjusted
Operating Companies Income
Operating Companies Income Less Asset Impairment & Exit Costs Adjusted Operating Companies Income Less Currency Adjusted Operating Companies Income excluding Currency Less Adjusted Operating Companies Income excluding Currency & Acquisitions Operating Companies Income Less Asset Impairment & Exit Costs Adjusted Operating Companies Income Adjusted Adjusted excluding Currency Adjusted excluding Currency & Acquisitions
Acquisitions
$ 969 $ — $ 969 $ (61 ) $ 1,030 $ — $ 1,030 European Union $ 1,070 $ — $ 1,070 (9.4 )% (3.7 )% (3.7 )%
733 — 733 (87 ) 820
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