EX-99.2 3 dex992.htm PHILP MORRIS INTERNATIONAL INC. PRESENTATION SLIDES, DATED JUNE 26,2009 Philp Morris International Inc. Presentation Slides, Dated June 26,2009
Hermann Waldemer
Chief Financial Officer
J. P. Morgan Global Tobacco Conference
London, 26 June 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 March 31,
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 at the end of this
web cast and are being posted on our web site.
Forward-Looking, Cautionary Statements and Use of
Non-GAAP Measures


3
First-Quarter 2009 Results
Excl.
Currency
12.7%
(6.3)% 
0.74
Reported Diluted EPS ($ / share)
11.3%
(7.5)%
0.74
Adjusted Diluted EPS ($ / share)
8.8%
(7.0)%
2.4
OCI ($ billion)
6.3%
(5.5)%
5.6
Net Revenues ($ billion)
(c)
(1.1)%
(b)
-
%
(a)
203.4
Cigarette Volume (units billion)
Excl.
Acquisitions
Increase /
(Decrease)
Q1 2009
Growth Q1, 2009 vs. Q1, 2008
(a)
An increase of 1.1% on a per selling day basis.
(b)
At 2008 level on a per selling day basis.
(c)
Excluding excise taxes.
Source: PMI Financials


4
Key Business Drivers
Strong revenue growth driven by higher prices
A generally manageable fiscal environment
Softer overall consumption levels
Slightly unfavorable product mix, reflecting some
consumer down-trading in specific markets
A solid share performance in our key markets
Growing consumer preference for lighter-tasting,
smoother products; technology and innovation;
slimmer diameter products; and menthol
Successful roll-out of our innovation pipeline
Positive impact of acquisitions


5
Revenue Growth
Since October 2008, PMI has increased prices notably
in:
Argentina
Brazil
Canada
Colombia
Costa Rica
Dom. Rep.
Mexico
Australia
Hong Kong
Indonesia
Pakistan
Philippines
Taiwan
Thailand
Kazakhstan
Romania
Russia
Serbia
Slovenia
Turkey
Ukraine
Czech Rep.
Germany
Greece
Italy
Netherlands
Spain
UK
LA & Canada
Asia
EEMA
EU
Source: PMI Financials


6
Pricing Variance
($ million)
Source: PMI Financials
269
358
Q1, 2008
Q1, 2009


7
Spain –
Pricing
0.34
0.30
0.19
0.19
0.19
Tax
Pass-on
Note:
0.35
2.80
2.45
Next
Variance
New
Old
(RSP/pack)
0.35
2.85
2.50
L&M
0.35
3.00
2.65
Marlboro Pocket Pack
0.35
3.20
2.85
Chesterfield
0.35
3.55
3.20
Marlboro KS
Source: PMI Finance


8
Pricing
Pricing is the key to revenue and profitability growth
in developed markets where volumes are declining
Pricing has also helped boost unit margins and
profitability in emerging markets
This year, pricing in emerging markets is also helping
to partially offset the unfavorable impact of currency
movements and weaker market conditions


9
Fiscal Environment
Fairer and generally more reasonable excise tax
environment
Balanced excise tax structures in place in essentially
all our top 25 OCI markets


10
1976
2003
2004
1995
1980
2004
2004
2001
2004
1995
1992
2003
1992
2000
2005
2004
2005
2005
2005
2006
2006
1995
2010
(a)
EU countries with Minimum Excise Taxes
Minimum Excise Taxes in the EU
(a)
Denmark
will
implement
MET
as
of
Jan
1   , 2010
st


11
Fiscal Environment
Fairer and generally more reasonable excise tax
environment
Balanced excise tax structures in place in essentially
all our top 25 OCI markets
Higher cigarette retail prices are boosting government
revenues
Most governments appear to recognize that large
excise tax increases tend to be counter-productive
Disruptive increases this year in Brazil and Ukraine


12
Ukraine –
Excise Taxation
100.00
47.00
40.00
18.00
Min.
Excise
Tax
(UAH/’000)
20.0%
60.00
May
16.0%
30.00
Oct
Jan
Jan
16.0%
12.5%
Ad-valorem
tax
(%)
37.50
14.00
Specific
tax
(UAH/’000)
Excise Taxes
2009
2008
Source: Ukrainian Ministry of Finance


13
Ukraine -
Pricing
4.50
6.00
6.50
8.00
11.00
May
3.00
-
-
-
-
Apr
2.90
4.40
5.00
6.50
9.00
Mar
2.20
3.60
4.00
6.00
8.00
Oct
Jan
Jul
Feb
Jan
2.50
1.60
1.55
1.45
Vatra
4.00
3.00
-
2.90
L&M
4.50
3.40
3.25
3.10
Chesterfield
6.25
-
5.00
4.75
Marlboro
8.50
7.50
-
7.00
Parliament
Retail Prices
(UAH/Pack)
2009
2008
Source: PMI Finance


14
Ukraine –
Consumer Prices (May 2009)
0.32
2.55
Mineral water (0.5 liters)
0.45
3.50
Obolon
beer (local)
1.78
14.00
Big Mac
0.52
4.10
Coca-Cola
(0.5
liters)
0.64
5.00
Bread (500g)
1.02
8.00
Marlboro
0.72
5.66
Milk (1 liter)
2.29
18.00
Colgate
toothpaste
2.79
21.90
Budweiser
beer (imported)
6.36
50.00
Cinema Ticket
Price (USD)
Price (UAH)
Source: Market
observations
by
PMI
affiliate.
May,
2009
average
daily
exchange
rate
USD/UAH=7.863
from
Bloomberg,
London
Close
18:00
PM


15
Industry Volume
Economic crisis and unemployment, as well as higher
retail prices, driving weaker industry volumes across
emerging markets


16
Industry Volume
Economic crisis and unemployment, as well as higher
retail prices, driving weaker industry volumes across
emerging markets
EU markets generally declining at or near underlying
longer-term tendency of 2.5% to 3.0%
Source: PMI GIMS estimates


17
Industry Volume
Economic crisis and unemployment, as well as higher
retail prices, driving weaker industry volumes across
emerging markets
EU markets generally declining at or near underlying
longer-term tendency of 2.5% to 3.0%
Spain suffered a 10.0% industry volume decline in Q1,
2009, notably due to a trade decision to reduce
working capital
Source: PMI GIMS estimates


18
Industry Volume
Economic crisis and unemployment, as well as higher
retail prices, driving weaker industry volumes across
emerging markets
EU markets generally declining at or near underlying
longer-term tendency of 2.5% to 3.0%
Spain suffered a 10.0% industry volume decline in Q1,
2009, notably due to a trade decision to reduce
working capital
Industry volume in Japan has recently been declining
slightly faster than usual, driven by one time events
and the timing of shipments
Source: PMI GIMS estimates


19
Consumer Behavior
No broad-based trend towards consumer down-
trading on a global basis
Our product mix is expected to be slightly unfavorable
this year
Trends vary by markets:
-
Gradual overall consumer down-trading (e.g. Russia, Spain)
-
Strong but slightly declining premium segments (e.g. Mexico)
-
Market polarization with mid-price being squeezed
(e.g. Turkey)
-
Growing premium segments (e.g. Poland)
Source: PMI GIMS estimates


20
Russia –
Price Segment Shares
2007
2008
2009
Source: A.C. Nielsen
(%)
58.5
64.1
60.0
58.3
58.3
25.0
22.0
24.0
24.9
25.0
16.5
13.9
16.0
16.8
16.7
0
100
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
April
Low / Value
Mid
Premium & Above


21
Prem. &
Above
Low /
Value
Q1, 2008
YTD May, 2009
Source: PMI Finance
Mid
Russia –
PMI Volume by Price Segment
Prem. &
Above
Low /
Value
Mid
50%
27%
23%
25%
31%
44%


22
Spain –
Premium Segment
Other
Marlboro
(a)
(a)
Excludes
the
pocket
pack.
Total
Marlboro
market
share
in
Spain
was
15.6%
in
Q1,
2009.
Source: PMI GIMS estimates
(%)
16.1
14.7
17.8
16.1
Q1, 2008
Q1, 2009


23
Mexico –
Price Segment Shares
Source: PMI GIMS estimates
(%)
2007
2008
2009
23.6
23.9
23.1
22.0
19.9
11.2
10.9
11.0
11.4
15.9
65.2
65.2
65.9
66.6
64.2
0
100
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Apr /
May
Low
Mid
Premium


24
Turkey –
Price Segment Shares
Source: A.C. Nielsen
(%)
2007
2008
2009
55.2
54.7
52.9
54.5
54.0
24.0
24.6
26.1
26.4
27.5
20.8
20.7
21.0
19.1
18.5
0
100
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
April
Low / Value
Mid
Premium & Above


25
Poland –
Price Segment Shares
Source: A.C. Nielsen
(%)
2007
2008
2009
57.2
57.5
58.6
57.7
57.5
29.9
29.8
29.0
30.2
30.6
12.9
12.7
12.4
12.1
11.9
0
100
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
April
Low
Mid
Premium


26
Top 15 International Brands (2008)
(bio)
Lark
Parliament
Chesterfield
Bond Street
Philip Morris
L&M
Marlboro
Source:
PMI
data
from
Financials.
Competitive
data
for
BAT
and
JT
International
Brands
derived
from
2008
company
reports
and
PMI
estimates.
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


27
PMI Brand Portfolio
Mid-Price
Premium &
Above
Local Heritage
International
Low-Price


28
EEMA Market Shares
(%)
Source: A.C. Nielsen. Note: Ukraine shares only available through April 2009
2008
2009
Turkey
Ukraine
35.8
34.7
36.4
40.8
42.7
42.4
30
45
Q1
Q2
Q3
Q4
Q1
Apr / May


29
Pack & Tipping
Paper Revamp
Jun 07
Online Laser
Perforation
Nov
06
Reserve
Launch
Oct
07
Super Slims
Launch
Apr
04
Pack
Revamp
Jun
04
2004
2005
2006
2007
2008
Q1, 04
3.6%
Pack
Revamp
Jan
06
8.4%
SoM (%)
Q1, 09
Turkey –
Parliament
Source: A.C. Nielsen


30
Russia –
PMI Market Share
(%)
Source: A.C. Nielsen
2008
2009
25.1
25.1
24.8
20
30
Q1
Q2
Q3
Q4
Q1
April


31
Russia –
Bond Street
Success in keeping Russian
smokers within our franchise
reflects breadth of our
portfolio
Shipments of low-price Bond
Street
up 27.7% in Q1, 2009
Source: A.C. Nielsen


32
Indonesia –
Market Shares
(%)
Source: A.C. Nielsen
A Mild
2007
2008
2009
10.5
10.5
10.5
9.5
9.9
6
12
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
April


33
Indonesia –
A Volution
A
Mild’s
success
bolstered
by
the
launch
of
A
Volution
First slimmer kretek, available
in regular and menthol
variants
A
Volution
market
share
of
0.2% in April 2009
Source: A.C. Nielsen


34
Latin America Market Shares
(%)
(a)
April 2009 data for Argentina
Source: PMI GIMS estimates
2008
2009
Argentina
Mexico
(a)
72.6
70.7
73.6
69.2
68.9
67.0
65
70
75
Q1
Q2
Q3
Q4
Q1
April / May


35
Mexico –
Marlboro Fresh
Marlboro
market share in
Mexico was 48.3% in Q1, 2009
Innovative
Marlboro
Fresh,
with a menthol thread in the
filter, reached 0.5% market
share in Q1, 2009
Source: PMI GIMS estimates


36
Western Europe Market Shares
(%)
Source: PMI GIMS estimates
2008
2009
Italy
France
Germany
Apr /
May
Spain
41.0
40.9
41.0
53.6
54.3
54.7
32.1
31.8
31.8
38.4
35.8
35.9
25
55
Q1
Q2
Q3
Q4
Q1


37
Western
Europe
Marlboro
Innovation
Marlboro
resilient in Europe,
supported by new initiatives
Shorter
Marlboro
Compact,
had
0.6% market share in Italy
in Q1, 2009
Marlboro Pocket Pack
reached 0.9% market share in
Spain in Q1, 2009
Source: PMI GIMS estimates


38
Marlboro Gold
New Pack
After successful test markets,
new
Marlboro
Gold
pack
being rolled-out
Very positive response from
German adult consumers


39
Key Consumer Preferences
Lighter-tasting, smoother products
Technology / innovation
Slimmer diameter products
Menthol


40
Turkey –
Charcoal Segment
Others
PMI
Source: A.C. Nielsen
(%)
23.1
26.0
31.1
Q1, 2007
Q1, 2008
Q1, 2009


41
Poland –
Slimmer Diameter Segment
Others
PMI
Source: A.C. Nielsen
(%)
10.2
13.3
15.5
Q1, 2007
Q1, 2008
Q1, 2009


42
Poland –
L&M Link
L&M Link
key driver behind
our success in slims segment
in Poland
L&M Link
achieved 3.1% total
market share Q1, 2009
Source: A.C. Nielsen


43
Japan –
Menthol Segment
2007
2008
2009
Source: Tobacco Institute of Japan
Menthol Segment Share
(Q1, 2009)
26.9
12.2
11.4
9.0
7.4
Marlboro
Pianis.
Kool
Virginia
Slims
Lark
Menthol Share of Market
20.5
21.8
22.4
Q1
Q1
Q1


44
Japan –
Marlboro Black Menthol
Launch of Marlboro Black
Menthol
in Japan was PMI's
most successful ever
Marlboro Black Menthol
achieved a 1.0% market share
in Japan in Q1, 2009
Marlboro
family
market
share
rose from 9.8% in Q1, 2008 to
10.4% in Q1, 2009
PMI overall share in Japan at
23.9%
Source: Tobacco Institute of Japan


45
Business Perspectives
Fundamentals of our business are in very good shape
Our growth strategy going forward remains intact
Marlboro
is
a
key
element
of
this
strategy
Successful
innovations
in
framework
of
new
Marlboro
architecture


46
Marlboro
Architecture
“Flavor
enjoyment”
“Smooth taste
and style”
“Fresh taste
sensations”
Red
Gold
Fresh


47
Marlboro Filter Plus


48
Marlboro Filter Plus
Source: A.C. Nielsen and PMI estimates
(%)
April 2009 Market Shares
0.3
0.3
2.5
1.3
2.6
1.8
0.6
0.9
0.6
0
3
Brazil
Japan
Kuwait
Paraguay
Romania
Almaty
Kiev
Moscow
St Pete.


49
Marlboro
Red
Family


50
Marlboro Red
New Pack


51
Marlboro Gold
EU
Region
Markets
(a)
Austria
Norway
Denmark
Poland
France
Sweden
Germany
Switzerland
Italy
(a)
Launches as of 31 May, 2009.


52
Marlboro
Gold
Family


53
Marlboro Gold Advance
Marlboro
Gold
Advance
is
a
smoother, full-flavor product
Launched nationally in
France after successful test
market


54
Marlboro Gold Touch
Marlboro
Gold
Touch
is
a
new
innovative offering in an
unprecedented cigarette
format
Launched in Austria, Greece
and Italy


55
Marlboro Gold Edge
Marlboro
Gold
Edge
is
a
super-slims product, which
has been launched in
Hungary, Poland, Russia and
Ukraine


56
Marlboro Gold Edge
Achieved segment shares of
2.4% in Poland and 0.7% in
Russia in April
and PMI estimates


57
Marlboro Gold Smooth
Marlboro
Gold
Smooth
is
a
1mg tar product
Just launched in Kuwait and
Saudi Arabia, where the 1mg
tar segment is growing


58
Marlboro Fresh


59
Marlboro Fresh
Black
Menthol
Crisp/Fresh
Mint
Other
Menthol
Source: A.C. Nielsen
(%)
PMI Hong Kong Market Shares 2009
11.2
11.6
11.4
10.8
10.7
2.8
2.9
2.7
2.2
2.2
0.7
2.9
14.0
14.5
14.8
15.9
15.9
3.0
0
20
January
February
March
April
May


60
Marlboro Fresh


61
Marlboro
Smoker
Shares
EU
Region
(2008)
LA-24 (“YAS”)
LA-64
(%)
Source: PMI Global Consumer Tracking Survey
0
50
Belgium
Czech
France
Germany
Greece
Italy
Neth.
Poland
Portugal
Spain
Switz.
UK


62
Marlboro
YAS
Smoker
Shares
-
Germany
(%)
Source: PMI Global Consumer Tracking Survey
2007
2008
2009
TOTAL
Red
Gold
0
10
20
30
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr


63
Marlboro
Smoker
Shares
non-EU
(2008)
(%)
Source: PMI Global Consumer Tracking Survey
LA-24 (“YAS”)
LA-64
0
70
Egypt
Russia
Saudi
Turkey
Ukraine
Indon.
Japan
Korea
Philip.
Argentina
Brazil
Mexico


64
PMI
BAT
JT
IMT
(b)
Other
PMI
BAT
JT
Other
Market Shares excl USA
Market Shares excl. PRC & USA
(a)
Volumes are on a calendar basis, except for IMT, who 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: PMI GIMS and company reports
IMT
(b)
CNTC
Competitive
Landscape
(2008)
(a)
9.3%
18.1%
25.8%
21.0%
25.8%
15.6%
15.6%
12.8%
39.3%
11.0%
5.7%


65
Complements organic growth
Provides often unique opportunities to enter new
markets or significantly step up our presence:
-
Sampoerna in Indonesia
-
Rothmans Inc. in Canada 
Acquisitions in other tobacco categories:
-
Interval
in
France
and
other
EU
markets
-
Petter  es
in
Norway
Snus joint-venture with Swedish Match
Acquisitions
Source: PMI Financials


66
Capital Structure
Free
cash
flow
of
$6.8
billion
in
2008
(a)
PMI committed to maintain strong credit ratings
Bond issues for equivalent of $10.1 billion in 2008 and
$3.0 billion in 2009
Well-laddered maturities and reasonable all-in long-
term average interest rate of 5.6%
Over $6 billion of committed revolving credit facilities
Access to Tier 1 commercial paper market
(a)
Operating cash flow less capital expenditures. In 2008, operating cash flow was $7,935 million and capital expenditures $1,099 million.
Source: PMI Financials


67
Shareholder Returns
Dividend raised by 17.4% in August 2008 to an
annualized rate of $2.16 / share
Willingness in 2009 to exceed our 65% dividend
payout target 
$13 billion two-year share repurchase program
initiated in May 2008
$5.4 billion of share repurchases in 2008 and similar
amount anticipated for 2009
$1.3 billion of share repurchases in Q1, 2009
In total, some $9 billion expected to be returned in
cash to shareholders during 2009
Source: PMI Financials


68
Summary
Tobacco sector resilient but not immune
Weaker industry volume and some consumer
downtrading
Prices increased to enhance profitability
Manageable excise tax and regulatory environment
Cost saving programs on track
Substantial cash flows and excellent liquidity
Dividends and share repurchases
Currency headwinds in the short-term
PMI well positioned to prosper as the economic
outlook improves


69
Constant Currency Mid to Long-Term
Annual Financial Growth Targets
Targets
Net Revenues
4 –
6%
Operating Income
6 –
8%
EPS
10 –
12%
(a)
Excluding excise taxes.
Source: PMI Financials


Hermann Waldemer
Chief Financial Officer
J. P. Morgan Global Tobacco Conference
London, 26 June 2009
Questions & Answers


71
(1)  As
discussed
in
Note
1.
Background
and
Basis
of
Presentation
of
our
2008
consolidated
financial
statements
which
appears
in
our
Annual
Report
on
Form
10-K, prior to 2008, certain of our subsidiaries reported their results up to ten days before the end of December, rather than on December 31.  During 2008,
these subsidiaries moved to a December 31 closing date.  As a result, certain amounts in the first quarter of 2008 were revised to reflect this change.
Source: PMI Financials
Adjustments for the Impact of Currency
For Quarters Ended March 31,
(in millions)
(Unaudited)
Reconciliation of Non-GAAP Measures
Reported
Net
Revenues
Less
Excise
Taxes
Reported
Net
Revenues
excluding
Excise
Taxes
Less
Currency
Reported
Net
Revenues
excluding
Excise
Taxes &
Currency
Reported
Net
Revenues
Less
Excise
Taxes
Reported
Net
Revenues
excluding
Excise
Taxes
    
Reported
Reported
excluding
Currency
6,050
$       
(4,063)
$  
1,987
$        
(251)
$        
2,238
$        
European Union
6,697
$        
(4,451)
$  
2,246
$        
(11.5)%
(0.4)%
2,831
         
(1,379)
    
1,452
          
(312)
1,764
          
EEMA
3,283
          
(1,621)
    
1,662
          
(12.6)%
6.1%
2,857
         
(1,267)
    
1,590
          
(49)
1,639
          
Asia
2,976
          
(1,473)
    
1,503
          
5.8%
9.0%
1,548
         
(980)
       
568
             
(85)
653
             
Latin America & Canada
1,398
          
(888)
       
510
             
11.4%
28.0%
13,286
$     
(7,689)
$  
5,597
$        
(697)
$        
6,294
$        
PMI Total
14,354
$      
(8,433)
$  
5,921
$        
(5.5)%
6.3%
Reported
Operating
Companies
Income
Less
Currency
Reported
Operating
Companies
Income
excluding
Currency
Reported
Operating
Companies
Income
    
Reported
Reported
excluding
Currency
967
$          
(184)
$        
1,151
$        
European Union
1,167
$        
(17.1)%
(1.4)%
586
            
(201)
787
EEMA
680
             
(13.8)%
15.7%
661
            
19
642
Asia
550
             
20.2%
16.7%
155
            
(35)
190
Latin America & Canada
149
             
4.0%
27.5%
2,369
$       
(401)
$        
2,770
$        
PMI Total
2,546
$        
(7.0)%
8.8%
2009
2008
(1)
% Change on Reported
Net Revenues excluding
Excise Taxes
2009
2008
(1)
% Change on Reported
Operating Companies
Income


72
Reconciliation of Non-GAAP Measures
(1)  As
discussed
in
Note
1.
Background
and
Basis
of
Presentation
of
our
2008
consolidated
financial
statements
which
appears
in
our
Annual
Report
on
Form
10-K, prior to 2008, certain of our subsidiaries reported their results up to ten days before the end of December, rather than on December 31.  During 2008,
these subsidiaries moved to a December 31 closing date.  As a result, certain amounts in the first quarter of 2008 were revised to reflect this change.
Source: PMI Financials
Reconciliation of Reported Diluted EPS to Reported Diluted EPS, Excluding Currency
For Quarters Ended March 31,
(Unaudited)
2009
2008
% Change
Reported Diluted EPS
(1)
0.74
$                   
0.79
$             
(6.3)%
Add:
Currency Impact
0.15
Reported Diluted EPS, Excluding Currency
0.89
$                   
0.79
$             
12.7%


73
Reconciliation of Non-GAAP Measures
(1)  As
discussed
in
Note
1.
Background
and
Basis
of
Presentation
of
our
2008
consolidated
financial
statements
which
appears
in
our
Annual
Report
on
Form
10-K, prior to 2008, certain of our subsidiaries reported their results up to ten days before the end of December, rather than on December 31.  During 2008,
these subsidiaries moved to a December 31 closing date.  As a result, certain amounts in the first quarter of 2008 were revised to reflect this change.
Source: PMI Financials
Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS and Adjusted Diluted EPS, Excluding Currency
For Quarters Ended March 31,
(Unaudited)
2009
2008
% Change
Reported Diluted EPS
(1)
0.74
$                   
0.79
$             
(6.3)%
Adjustments:
Asset impairment and exit costs
-
0.01
Adjusted Diluted EPS
0.74
$                   
0.80
$             
(7.5)%
Add:
Currency Impact
0.15
Adjusted Diluted EPS, Excluding Currency
0.89
$                   
0.80
$             
11.3%


74
Reconciliation of Operating Companies Income to Operating Income
For Quarters Ended March 31,
(in millions)
(Unaudited)
$
2,524
$
2,320
Operating Income
(34)
(15)
$
2,369
155
661
586
$
967
First Quarter 2009
(13)
General corporate expenses
(9)
Amortization of intangibles
149
Latin America & Canada
$
2,546
Operating Companies Income
550
Asia
680
EEMA
$
1,167
EU
First Quarter 2008
Source: PMI Financials
Reconciliation of Non-GAAP Measures