General
• "PMI" refers to Philip Morris International Inc. and its subsidiaries. Trademarks and service marks that are the registered property of, or licensed by, the subsidiaries of PMI, are italicized.
• The recast 2022 and 2021 shipment volumes and financial information in this document reflect PMI's new geographic segmentation, announced on November 25, 2022, effective in January 2023. PMI's shipment volumes and financials for total PMI, as well as Wellness & Healthcare and Swedish Match segments presented in this document do not differ from previously disclosed results.
• Comparisons are made to the same prior-year period unless otherwise stated.
• "Combustible tobacco products" is the term PMI uses to refer to cigarettes and other tobacco products that are combusted.
• "Total shipment volume" is defined as the combined total of cigarette shipment volume and heated tobacco unit shipment volume.
• In the third quarter of 2021, PMI acquired Fertin Pharma A/S, Vectura Group plc. and OtiTopic, Inc. On March 31, 2022, PMI launched a new Wellness and Healthcare business consolidating these entities, Vectura Fertin Pharma. The operating results of this new business are reported in the Wellness and Healthcare segment. The business operations of PMI's Wellness and Healthcare segment are managed and evaluated separately from the geographical segments.
• In the fourth quarter of 2022, Philip Morris Holland Holdings B.V., a wholly owned subsidiary of PMI, acquired a controlling interest in Swedish Match. The operating results of Swedish Match are disclosed as a separate segment. The business operations of the Swedish Match segment are managed and evaluated separately from the geographical segments.
Financial
• Adjusted net revenues exclude the impact related to the Saudi Arabia customs assessments.
• "Adjusted Operating Income Margin" is calculated as adjusted operating income divided by adjusted net revenues.
• Management reviews net revenues, operating income, operating income margin, operating cash flow and earnings per share, or "EPS," on an adjusted basis, which may exclude the impact of currency and other items such as acquisitions, asset impairment and exit costs, tax items and other special items. Additionally, starting in 2022 and on a comparative basis, for these measures other than net revenues and operating cash flow, PMI included adjustments to add back amortization expense on acquisition related intangible assets that are recorded as part of purchase accounting and contribute to PMI's revenue generation, as well as impairment of intangible assets, if any.Currency-neutral and organic growth rates reflect the way management views underlying performance for these measures. PMI believes that such measures provide useful insight into underlying business trends and results.
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• Management reviews these measures because they exclude changes in currency exchange rates and other factors that may distort underlying business trends, thereby improving the comparability of PMI's business performance between reporting periods. Furthermore, PMI uses several of these measures in its management compensation program to promote internal fairness and a disciplined assessment of performance against company targets. PMI discloses these measures to enable investors to view the business through the eyes of management.
• Non-GAAP measures used in this release should neither be considered in isolation nor as a substitute for the financial measures prepared in accordance with U.S. GAAP. For a reconciliation of non-GAAP measures to the most directly comparable U.S. GAAP measures, see the relevant schedules provided with this report.
Smoke-Free Products
• Smoke-free products ("SFPs") is the term PMI primarily uses to refer to all of its products that are not combustible tobacco products, such as heat-not-burn, e-vapor, and oral nicotine. In addition, SFPs include wellness and healthcare products, as well as consumer accessories such as lighters and matches.
• Reduced-risk products ("RRPs") is the term PMI uses 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 continuing smoking. PMI has a range of RRPs in various stages of development, scientific assessment and commercialization. PMI's RRPs are smoke-free products that contain and/or generate far lower quantities of harmful and potentially harmful constituents than found in cigarette smoke.
• Wellness and Healthcare products primarily refer to products associated with inhaled therapeutics and oral and intra-oral delivery systems that are included in the operating results of PMI's new Wellness and Healthcare business, Vectura Fertin Pharma.
• Following the Swedish Match acquisition and a review of PMI and Swedish Match's combined product portfolio, PMI reclassified certain of its own products previously reported under its combustible tobacco product category to the newly created smoke-free product category to better reflect the characteristics of these products. Prior years' amounts have been reclassified to conform with the updated presentation for all periods presented.
• "Heated tobacco units," or "HTUs," is the term PMI uses to refer to heated tobacco consumables, which include the company's BLENDS, HEETS, HEETS Creations, HEETS Dimensions, HEETS Marlboro and HEETS FROM MARLBORO (defined collectively as HEETS), MarlboroDimensions, MarlboroHeatSticks,Parliament HeatSticks, SENTIA and TEREA, as well as the KT&G-licensed brands, Fiit and Miix (outside of South Korea).
• "SSEA, CIS & MEA" stands for South & Southeast Asia, Commonwealth of Independent States, and Middle East & Africa.
• "EA, AU & PMI DF" stands for East Asia, Australia and PMI Duty Free.
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PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||
New Geographic Segmentation (effective January 2023) | |||||
Europe |
South & Southeast Asia, Commonwealth of Independent States & Middle East & Africa (SSEA, CIS & MEA) |
East Asia, Australia & PMI Duty Free (EA, AU & PMI DF) | Americas | ||
Albania | Serbia | Afghanistan | Kuwait | Australia | Argentina |
Andorra | Slovak Republic | Algeria | Laos | Duty Free | Bolivia |
Austria | Slovenia | Angola | Lebanon | Hong Kong | Brazil |
Belgium | Spain | Bahrain | Lesotho | Japan | Canada |
Bosnia & Herzegovina | Sweden | Bangladesh | Liberia | Macau |
Caribbean(5)
|
Bulgaria | Switzerland | Bhutan | Libya | Malaysia | Chile |
Canary Islands | Ukraine | Botswana | Maldives | New Zealand | Colombia |
Croatia | United Kingdom | Burkina Faso | Mali |
Pacific Islands(4)
| Costa Rica |
Czech Republic | Cambodia | Mauritania | People's Republic of China | Dominican Republic | |
Denmark | Cameroon | Morocco | Singapore | Ecuador | |
Estonia | Cape Verde | Namibia | South Korea | El Salvador | |
Finland |
Caucasus(1)
| Nigeria | Taiwan | Guatemala | |
France |
Central Asia(2)
| Oman | Honduras | ||
Germany | Djibouti | Pakistan | Mexico | ||
Greece | East Timor | Philippines | Nicaragua | ||
Hungary | Egypt | Qatar | Panama | ||
Italy | Equatorial Guinea | Russia | Paraguay | ||
Kosovo | Gabon | Saudi Arabia | Peru | ||
Latvia | Gambia | Senegal | Trinidad & Tobago | ||
Lithuania | Guinea | Somalia | United States of America | ||
Luxembourg | India | South Africa | Uruguay | ||
Moldova |
Indian Ocean Islands(3)
| Tanzania | Venezuela | ||
Montenegro | Indonesia | Thailand | |||
Netherlands | Iraq | Togo | |||
North Macedonia | Israel | Tunisia | |||
Norway | Ivory Coast | Turkey | |||
Poland | Jordan | United Arab Emirates | |||
Portugal | Kazakhstan | Vietnam | |||
Romania | Kingdom of Eswatini |
Schedule 1 | ||||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | ||||||||||||||||||||
Shipment Volume by Product Category | ||||||||||||||||||||
(million units) / (unaudited) | ||||||||||||||||||||
Quarters Ended March 31 |
Quarters Ended June 30 |
Quarters Ended September 30 |
Quarters Ended December 31 |
Full Year Ended December 31 | ||||||||||||||||
2022 | 2021 |
% Change | 2022 | 2021 |
% Change | 2022 | 2021 |
% Change | 2022 | 2021 |
% Change | 2022 | 2021 |
% Change | ||||||
Cigarettes | ||||||||||||||||||||
Europe | 40,849 | 41,077 | (0.6) | % | 45,166 | 46,674 | (3.2) | % | 45,304 | 47,818 | (5.3) | % | 39,339 | 42,492 | (7.4) | % | 170,658 | 178,061 | (4.2) | % |
SSEA, CIS & MEA | 78,246 | 77,089 | 1.5 | % | 82,365 | 81,881 | 0.6 | % | 86,495 | 87,514 | (1.2) | % | 83,920 | 84,355 | (0.5) | % | 331,026 | 330,839 | 0.1 | % |
EA, AU & PMI DF | 14,348 | 12,461 | 15.1 | % | 14,067 | 12,370 | 13.7 | % | 13,501 | 13,517 | (0.1) | % | 12,335 | 13,040 | (5.4) | % | 54,251 | 51,388 | 5.6 | % |
Americas | 14,795 | 14,885 | (0.6) | % | 16,080 | 15,213 | 5.7 | % | 16,666 | 15,994 | 4.2 | % | 18,432 | 18,495 | (0.3) | % | 65,973 | 64,587 | 2.1 | % |
Total PMI | 148,238 | 145,512 | 1.9 | % | 157,678 | 156,138 | 1.0 | % | 161,966 | 164,843 | (1.7) | % | 154,026 | 158,382 | (2.8) | % | 621,908 | 624,875 | (0.5) | % |
Heated Tobacco Units | ||||||||||||||||||||
Europe | 10,269 | 7,842 | 30.9 | % | 10,542 | 8,514 | 23.8 | % | 11,685 | 8,655 | 35.0 | % | 12,921 | 9,412 | 37.3 | % | 45,417 | 34,423 | 31.9 | % |
SSEA, CIS & MEA | 5,013 | 4,553 | 10.1 | % | 5,642 | 5,652 | (0.2) | % | 5,830 | 5,025 | 16.0 | % | 6,122 | 6,013 | 1.8 | % | 22,607 | 21,243 | 6.4 | % |
EA, AU & PMI DF | 9,429 | 9,234 | 2.1 | % | 8,531 | 10,050 | (15.1) | % | 9,868 | 9,588 | 2.9 | % | 12,785 | 9,862 | 29.6 | % | 40,613 | 38,734 | 4.9 | % |
Americas | 108 | 105 | 2.9 | % | 106 | 140 | (24.3) | % | 125 | 221 | (43.4) | % | 193 | 110 | 75.5 | % | 532 | 576 | (7.6) | % |
Total PMI | 24,819 | 21,734 | 14.2 | % | 24,821 | 24,356 | 1.9 | % | 27,508 | 23,489 | 17.1 | % | 32,021 | 25,397 | 26.1 | % | 109,169 | 94,976 | 14.9 | % |
Cigarettes and Heated Tobacco Units | ||||||||||||||||||||
Europe | 51,118 | 48,919 | 4.5 | % | 55,708 | 55,188 | 0.9 | % | 56,989 | 56,473 | 0.9 | % | 52,260 | 51,904 | 0.7 | % | 216,075 | 212,484 | 1.7 | % |
SSEA, CIS & MEA | 83,259 | 81,642 | 2.0 | % | 88,007 | 87,533 | 0.5 | % | 92,325 | 92,539 | (0.2) | % | 90,042 | 90,368 | (0.4) | % | 353,633 | 352,082 | 0.4 | % |
EA, AU & PMI DF | 23,777 | 21,695 | 9.6 | % | 22,598 | 22,420 | 0.8 | % | 23,369 | 23,105 | 1.1 | % | 25,120 | 22,902 | 9.7 | % | 94,864 | 90,122 | 5.3 | % |
Americas | 14,903 | 14,990 | (0.6) | % | 16,186 | 15,353 | 5.4 | % | 16,791 | 16,215 | 3.6 | % | 18,625 | 18,605 | 0.1 | % | 66,505 | 65,163 | 2.1 | % |
Total PMI | 173,057 | 167,246 | 3.5 | % | 182,499 | 180,494 | 1.1 | % | 189,474 | 188,332 | 0.6 | % | 186,047 | 183,779 | 1.2 | % | 731,077 | 719,851 | 1.6 | % |
Schedule 2 (1/5) | ||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | ||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions | ||||||||||||
($ in millions) / (Unaudited) | ||||||||||||
Net Revenues | Currency |
Net Revenues excluding Currency | Acquisitions | Net Revenues excluding Currency & Acquisitions |
Quarters Ended March 31 |
Net Revenues | Total | Excluding Currency | Excluding Currency & Acquisitions | |||
2022 | Combustible Tobacco | 2021 | % Change | |||||||||
$ 1,937 | $ (128) | $ 2,065 | $ - | $ 2,065 | Europe | $ 2,069 | (6.4) | % | (0.2) | % | (0.2) | % |
2,195 | (229) | 2,424 | - | 2,424 | SSEA, CIS & MEA | 2,247 | (2.3) | % | 7.9 | % | 7.9 | % |
769 | (45) | 814 | - | 814 | EA, AU & PMI DF | 713 | 7.8 | % | 14.2 | % | 14.2 | % |
402 | (13) | 415 | - | 415 | Americas | 401 | 0.4 | % | 3.5 | % | 3.5 | % |
$ 5,304 | $ (414) | $ 5,718 | $ - | $ 5,718 | Total Combustible Tobacco | $ 5,430 | (2.3) | % | 5.3 | % | 5.3 | % |
2022 | Smoke-free excl. W&H | 2021 | % Change | |||||||||
$ 1,287 | $ (83) | $ 1,370 | $ 4 | $ 1,367 | Europe | $ 1,053 | 22.2 | % | 30.2 | % | 29.8 | % |
250 | (25) | 275 | - | 275 | SSEA, CIS & MEA | 239 | 4.5 | % | 15.1 | % | 15.1 | % |
818 | (67) | 885 | - | 885 | EA, AU & PMI DF | 830 | (1.4) | % | 6.6 | % | 6.6 | % |
22 | - | 22 | - | 22 | Americas | 33 | (34.7) | % | (33.5) | % | (33.5) | % |
$ 2,376 | $ (176) | $ 2,552 | $ 4 | $ 2,548 | Total Smoke-free excl. W&H | $ 2,155 | 10.3 | % | 18.4 | % | 18.3 | % |
2022 | Wellness & Healthcare | 2021 | % Change | |||||||||
$ 66 | $ - | $ 66 | $ 66 | $ - | Wellness & Healthcare | $ - | - | % | - | % | - | % |
2022 | Smoke-free incl. W&H | 2021 | % Change | |||||||||
$ 2,442 | $ (176) | $ 2,618 | $ 70 | $ 2,548 | Total Smoke-free incl. W&H | $ 2,155 | 13.4 | % | 21.5 | % | 18.3 | % |
2022 | PMI | 2021 | % Change | |||||||||
$ 3,224 | $ (211) | $ 3,435 | $ 4 | $ 3,431 | Europe | $ 3,122 | 3.3 | % | 10.0 | % | 9.9 | % |
2,445 | (254) | 2,699 | - | 2,699 | SSEA, CIS & MEA | 2,486 | (1.6) | % | 8.6 | % | 8.6 | % |
1,587 | (112) | 1,699 | - | 1,699 | EA, AU & PMI DF | 1,543 | 2.9 | % | 10.1 | % | 10.1 | % |
424 | (13) | 437 | - | 437 | Americas | 434 | (2.3) | % | 0.7 | % | 0.7 | % |
66 | - | 66 | 66 | - | Wellness & Healthcare | - | - | % | - | % | - | % |
$ 7,746 | $ (590) | $ 8,336 | $ 70 | $ 8,266 | Total PMI | $ 7,585 | 2.1 | % | 9.9 | % | 9.0 | % |
Note: Sum of product categories or Regions might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million. |
Schedule 2 (2/5) | |||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions | |||||||||||||
($ in millions) / (Unaudited) | |||||||||||||
Net Revenues | Currency |
Net Revenues excluding Currency | Acquisitions | Net Revenues excluding Currency & Acquisitions |
Quarters Ended June 30 |
Net Revenues | Total | Excluding Currency | Excluding Currency & Acquisitions | ||||
2022 | Combustible Tobacco | 2021 | % Change | ||||||||||
$ 2,062 | $ (211) | $ 2,273 | $ (1) | $ 2,274 | Europe | $ 2,300 | (10.3) | % | (1.1) | % | (1.1) | % | |
2,203 | (42) | 2,245 | - | 2,245 | SSEA, CIS & MEA | 1,904 | (a) | 15.7 | % | 17.9 | % | 17.9 | % |
754 | (53) | 807 | - | 807 | EA, AU & PMI DF | 688 | 9.6 | % | 17.3 | % | 17.3 | % | |
444 | 4 | 440 | - | 440 | Americas | 398 | 11.7 | % | 10.7 | % | 10.7 | % | |
$ 5,463 | $ (302) | $ 5,765 | $ (1) | $ 5,766 | Total Combustible Tobacco | $ 5,290 | 3.3 | % | 9.0 | % | 9.0 | % | |
2022 | Smoke-free excl. W&H | 2021 | % Change | ||||||||||
$ 1,247 | $ (132) | $ 1,379 | $ 4 | $ 1,375 | Europe | $ 1,058 | 17.8 | % | 30.3 | % | 29.9 | % | |
311 | 5 | 306 | - | 306 | SSEA, CIS & MEA | 300 | 4.0 | % | 2.2 | % | 2.2 | % | |
710 | (72) | 782 | - | 782 | EA, AU & PMI DF | 914 | (22.3) | % | (14.4) | % | (14.4) | % | |
25 | - | 25 | - | 25 | Americas | 32 | (23.3) | % | (23.1) | % | (23.1) | % | |
$ 2,293 | $ (199) | $ 2,492 | $ 4 | $ 2,488 | Total Smoke-free excl. W&H | $ 2,304 | (0.5) | % | 8.1 | % | 8.0 | % | |
2022 | Wellness & Healthcare | 2021 | % Change | ||||||||||
$ 76 | $ - | $ 76 | $ 76 | $ - | Wellness & Healthcare | $ - | - | % | - | % | - | % | |
2022 | Smoke-free incl. W&H | 2021 | % Change | ||||||||||
$ 2,369 | $ (199) | $ 2,568 | $ 80 | $ 2,488 | Total Smoke-free incl. W&H | $ 2,304 | 2.8 | % | 11.4 | % | 8.0 | % | |
2022 | PMI | 2021 | % Change | ||||||||||
$ 3,309 | $ (343) | $ 3,652 | $ 3 | $ 3,649 | Europe | $ 3,358 | (1.5) | % | 8.8 | % | 8.7 | % | |
2,514 | (37) | 2,551 | - | 2,551 | SSEA, CIS & MEA | 2,204 | (a) | 14.1 | % | 15.7 | % | 15.7 | % |
1,464 | (125) | 1,589 | - | 1,589 | EA, AU & PMI DF | 1,602 | (8.6) | % | (0.8) | % | (0.8) | % | |
469 | 4 | 465 | - | 465 | Americas | 430 | 9.1 | % | 8.1 | % | 8.1 | % | |
76 | - | 76 | 76 | - | Wellness & Healthcare | - | - | % | - | % | - | % | |
$ 7,832 | $ (501) | $ 8,333 | $ 79 | $ 8,254 | Total PMI | $ 7,594 | 3.1 | % | 9.7 | % | 8.7 | % | |
(a) Includes a reduction in net revenues of $246 million related to the Saudi Arabia customs assessment | |||||||||||||
Note: Sum of product categories or Regions might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million. |
Schedule 2 (3/5) | ||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | ||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions | ||||||||||||
($ in millions) / (Unaudited) | ||||||||||||
Net Revenues | Currency |
Net Revenues excluding Currency | Acquisitions | Net Revenues excluding Currency & Acquisitions |
Quarters Ended September 30 |
Net Revenues | Total | Excluding Currency | Excluding Currency & Acquisitions | |||
2022 | Combustible Tobacco | 2021 | % Change | |||||||||
$ 1,996 | $ (300) | $ 2,297 | $ 1 | $ 2,296 | Europe | $ 2,333 | (14.4) | % | (1.5) | % | (1.6) | % |
2,454 | (41) | 2,494 | - | 2,494 | SSEA, CIS & MEA | 2,284 | 7.4 | % | 9.2 | % | 9.2 | % |
692 | (71) | 762 | - | 762 | EA, AU & PMI DF | 733 | (5.6) | % | 4.0 | % | 4.0 | % |
450 | (7) | 456 | - | 456 | Americas | 417 | 7.8 | % | 9.4 | % | 9.4 | % |
$ 5,591 | $ (418) | $ 6,010 | $ 1 | $ 6,009 | Total Combustible Tobacco | $ 5,767 | (3.0) | % | 4.2 | % | 4.2 | % |
2022 | Smoke-free excl. W&H | 2021 | % Change | |||||||||
$ 1,276 | $ (202) | $ 1,477 | $ 2 | $ 1,475 | Europe | $ 1,100 | 15.9 | % | 34.3 | % | 34.1 | % |
368 | 41 | 328 | - | 328 | SSEA, CIS & MEA | 271 | 36.1 | % | 21.0 | % | 21.0 | % |
715 | (106) | 822 | - | 822 | EA, AU & PMI DF | 945 | (24.3) | % | (13.0) | % | (13.0) | % |
24 | - | 25 | - | 25 | Americas | 39 | (37.5) | % | (36.4) | % | (36.4) | % |
$ 2,384 | $ (268) | $ 2,651 | $ 2 | $ 2,649 | Total Smoke-free excl. W&H | $ 2,355 | 1.2 | % | 12.6 | % | 12.5 | % |
2022 | Wellness & Healthcare | 2021 | % Change | |||||||||
$ 57 | $ (1) | $ 58 | $ 47 | $ 11 | Wellness & Healthcare | $ - | - | % | - | % | - | % |
2022 | Smoke-free incl. W&H | 2021 | % Change | |||||||||
$ 2,441 | $ (269) | $ 2,709 | $ 49 | $ 2,660 | Total Smoke-free incl. W&H | $ 2,355 | 3.6 | % | 15.1 | % | 13.0 | % |
2022 | PMI | 2021 | % Change | |||||||||
$ 3,272 | $ (502) | $ 3,774 | $ 3 | $ 3,771 | Europe | $ 3,433 | (4.7) | % | 9.9 | % | 9.8 | % |
2,822 | - | 2,822 | - | 2,822 | SSEA, CIS & MEA | 2,555 | 10.5 | % | 10.5 | % | 10.5 | % |
1,407 | (177) | 1,584 | - | 1,584 | EA, AU & PMI DF | 1,678 | (16.2) | % | (5.6) | % | (5.6) | % |
474 | (7) | 481 | - | 481 | Americas | 456 | 3.9 | % | 5.5 | % | 5.5 | % |
57 | (1) | 58 | 47 | 11 | Wellness & Healthcare | - | - | % | - | % | - | % |
$ 8,032 | $ (687) | $ 8,719 | $ 50 | $ 8,669 | Total PMI | $ 8,122 | (1.1) | % | 7.4 | % | 6.7 | % |
Note: Sum of product categories or Regions might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million. |
Schedule 2 (4/5) | ||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | ||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions | ||||||||||||
($ in millions) / (Unaudited) | ||||||||||||
Net Revenues | Currency |
Net Revenues excluding Currency | Acquisitions | Net Revenues excluding Currency & Acquisitions |
Quarters Ended December 31 |
Net Revenues | Total | Excluding Currency | Excluding Currency & Acquisitions | |||
2022 | Combustible Tobacco | 2021 | % Change | |||||||||
$ 1,698 | $ (291) | $ 1,989 | $ - | $ 1,989 | Europe | $ 2,065 | (17.8) | % | (3.7) | % | (3.7) | % |
2,321 | (144) | 2,465 | - | 2,465 | SSEA, CIS & MEA | 2,298 | 1.0 | % | 7.3 | % | 7.3 | % |
617 | (74) | 691 | - | 691 | EA, AU & PMI DF | 727 | (15.1) | % | (4.9) | % | (4.9) | % |
508 | 2 | 506 | - | 506 | Americas | 490 | 3.6 | % | 3.3 | % | 3.3 | % |
70 | - | 70 | 70 | - | Swedish Match | - | - | % | - | % | - | % |
$ 5,214 | $ (508) | $ 5,722 | $ 70 | $ 5,652 | Total Combustible Tobacco | $ 5,579 | (6.6) | % | 2.6 | % | 1.3 | % |
2022 | Smoke-free excl. W&H | 2021 | % Change | |||||||||
$ 1,366 | $ (229) | $ 1,595 | $ - | $ 1,595 | Europe | $ 1,177 | 16.0 | % | 35.5 | % | 35.5 | % |
365 | 16 | 349 | - | 349 | SSEA, CIS & MEA | 315 | 15.7 | % | 10.6 | % | 10.6 | % |
861 | (147) | 1,008 | - | 1,008 | EA, AU & PMI DF | 898 | (4.1) | % | 12.2 | % | 12.2 | % |
28 | (1) | 29 | - | 29 | Americas | 33 | (14.4) | % | (12.1) | % | (12.1) | % |
246 | - | 246 | 246 | - | Swedish Match | - | - | % | - | % | - | % |
$ 2,866 | $ (360) | $ 3,226 | $ 246 | $ 2,980 | Total Smoke-free excl. W&H | $ 2,424 | 18.3 | % | 33.1 | % | 23.0 | % |
2022 | Wellness & Healthcare | 2021 | % Change | |||||||||
$ 72 | $ (10) | $ 82 | $ - | $ 82 | Wellness & Healthcare | $ 101 | (28.7) | % | (18.8) | % | (18.8) | % |
2022 | Smoke-free incl. W&H | 2021 | % Change | |||||||||
$ 2,938 | $ (370) | $ 3,308 | $ 246 | $ 3,062 | Total Smoke-free incl. W&H | $ 2,525 | 16.4 | % | 31.0 | % | 21.3 | % |
2022 | PMI | 2021 | % Change | |||||||||
$ 3,064 | $ (520) | $ 3,584 | $ - | $ 3,584 | Europe | $ 3,242 | (5.5) | % | 10.5 | % | 10.5 | % |
2,686 | (128) | 2,814 | - | 2,814 | SSEA, CIS & MEA | 2,613 | 2.8 | % | 7.7 | % | 7.7 | % |
1,478 | (221) | 1,699 | - | 1,699 | EA, AU & PMI DF | 1,625 | (9.0) | % | 4.6 | % | 4.6 | % |
536 | 1 | 535 | - | 535 | Americas | 523 | 2.5 | % | 2.3 | % | 2.3 | % |
316 | - | 316 | 316 | - | Swedish Match | - | - | % | - | % | - | % |
72 | (10) | 82 | - | 82 | Wellness & Healthcare | 101 | (28.7) | % | (18.8) | % | (18.8) | % |
$ 8,152 | $ (878) | $ 9,030 | $ 316 | $ 8,714 | Total PMI | $ 8,104 | 0.6 | % | 11.4 | % | 7.5 | % |
Note: Sum of product categories or Regions might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million. |
Schedule 2 (5/5) | |||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions | |||||||||||||
($ in millions) / (Unaudited) | |||||||||||||
Net Revenues | Currency |
Net Revenues excluding Currency | Acquisitions | Net Revenues excluding Currency & Acquisitions |
Full Year Ended December 31 |
Net Revenues | Total | Excluding Currency | Excluding Currency & Acquisitions | ||||
2022 | Combustible Tobacco | 2021 | % Change | ||||||||||
$ 7,694 | $ (931) | $ 8,624 | $ - | $ 8,624 | Europe | $ 8,767 | (12.2) | % | (1.6) | % | (1.6) | % | |
9,173 | (456) | 9,629 | - | 9,629 | SSEA, CIS & MEA | 8,734 | (a) | 5.0 | % | 10.2 | % | 10.2 | % |
2,831 | (243) | 3,074 | - | 3,074 | EA, AU & PMI DF | 2,861 | (1.0) | % | 7.5 | % | 7.5 | % | |
1,804 | (13) | 1,818 | - | 1,818 | Americas | 1,706 | 5.8 | % | 6.5 | % | 6.5 | % | |
70 | - | 70 | 70 | - | Swedish Match | - | - | % | - | % | - | % | |
$ 21,572 | $ (1,643) | $ 23,214 | $ 70 | $ 23,144 | Total Combustible Tobacco | $ 22,067 | (2.2) | % | 5.2 | % | 4.9 | % | |
2022 | Smoke-free excl. W&H | 2021 | % Change | ||||||||||
$ 5,175 | $ (645) | $ 5,821 | $ 10 | $ 5,811 | Europe | $ 4,388 | 17.9 | % | 32.6 | % | 32.4 | % | |
1,294 | 37 | 1,257 | - | 1,257 | SSEA, CIS & MEA | 1,124 | 15.1 | % | 11.8 | % | 11.8 | % | |
3,105 | (392) | 3,497 | - | 3,497 | EA, AU & PMI DF | 3,587 | (13.5) | % | (2.5) | % | (2.5) | % | |
99 | (2) | 100 | - | 100 | Americas | 137 | (28.0) | % | (26.8) | % | (26.8) | % | |
246 | - | 246 | 246 | - | Swedish Match | - | - | % | - | % | - | % | |
$ 9,919 | $ (1,002) | $ 10,922 | $ 256 | $ 10,666 | Total Smoke-free excl. W&H | $ 9,237 | 7.4 | % | 18.2 | % | 15.5 | % | |
2022 | Wellness & Healthcare | 2021 | % Change | ||||||||||
$ 271 | $ (11) | $ 282 | $ 189 | $ 93 | Wellness & Healthcare | $ 101 | +100% | +100% | (7.9) | % | |||
2022 | Smoke-free incl. W&H | 2021 | % Change | ||||||||||
$ 10,190 | $ (1,013) | $ 11,204 | $ 445 | $ 10,759 | Total Smoke-free incl. W&H | $ 9,338 | 9.1 | % | 20.0 | % | 15.2 | % | |
2022 | PMI | 2021 | % Change | ||||||||||
$ 12,869 | $ (1,576) | $ 14,445 | $ 10 | $ 14,435 | Europe | $ 13,155 | (2.2) | % | 9.8 | % | 9.7 | % | |
10,467 | (419) | 10,886 | - | 10,886 | SSEA, CIS & MEA | 9,858 | (a) | 6.2 | % | 10.4 | % | 10.4 | % |
5,936 | (635) | 6,571 | - | 6,571 | EA, AU & PMI DF | 6,448 | (7.9) | % | 1.9 | % | 1.9 | % | |
1,903 | (15) | 1,918 | - | 1,918 | Americas | 1,843 | 3.3 | % | 4.1 | % | 4.1 | % | |
316 | - | 316 | 316 | - | Swedish Match | - | - | % | - | % | - | % | |
271 | (11) | 282 | 189 | 93 | Wellness & Healthcare | 101 | +100% | +100% | (7.9) | % | |||
$ 31,762 | $ (2,656) | $ 34,418 | $ 515 | $ 33,903 | Total PMI | $ 31,405 | 1.1 | % | 9.6 | % | 8.0 | % | |
(a) Includes a reduction in net revenues of $246 million related to the Saudi Arabia customs assessment | |||||||||||||
Note: Sum of product categories or Regions might not foot to total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million. |
Schedule 3 | ||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | ||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||
Reconciliation of Net Revenues to Adjusted Net Revenues, excluding Currency and Acquisitions | ||||||||||||||||
($ in millions) / (Unaudited) | ||||||||||||||||
Net Revenues | Special Items |
Adjusted Net Revenues | Currency |
Adjusted Net Revenues excluding Currency |
Acqui- sitions |
Adjusted Net Revenues excluding Currency & Acqui- sitions |
Net Revenues | Special Items (a) |
Adjusted Net Revenues | Total | Excluding Currency |
Excluding Currency & Acqui- sitions | ||||
2022 |
Quarters Ended June 30, | 2021 | % Change | |||||||||||||
$ 3,309 | $ - | $ 3,309 | $ (343) | $ 3,652 | $ 3 | $ 3,649 | Europe | $ 3,358 | $ - | $ 3,358 | (1.5) | % | 8.8 | % | 8.7 | % |
2,514 | - | 2,514 | (37) | 2,551 | - | 2,551 | SSEA, CIS & MEA | 2,204 | (246) | 2,450 | 2.6 | % | 4.1 | % | 4.1 | % |
1,464 | - | 1,464 | (125) | 1,589 | - | 1,589 | EA, AU & PMI DF | 1,602 | - | 1,602 | (8.6) | % | (0.8) | % | (0.8) | % |
469 | - | 469 | 4 | 465 | - | 465 | Americas | 430 | - | 430 | 9.1 | % | 8.1 | % | 8.1 | % |
- | - | - | - | - | - | - | Swedish Match | - | - | - | - | % | - | % | - | % |
76 | - | 76 | - | 76 | 76 | - | Wellness & Healthcare | - | - | - | - | % | - | % | - | % |
$ 7,832 | $ - | $ 7,832 | $ (501) | $ 8,333 | $ 79 | $ 8,254 | Total PMI | $ 7,594 | $ (246) | $ 7,840 | (0.1) | % | 6.3 | % | 5.3 | % |
2022 |
Years Ended December 31, | 2021 | % Change | |||||||||||||
$ 12,869 | $ - | $ 12,869 | $ (1,576) | $ 14,445 | $ 10 | $ 14,435 | Europe | $ 13,155 | $ - | $ 13,155 | (2.2) | % | 9.8 | % | 9.7 | % |
10,467 | - | 10,467 | (419) | 10,886 | - | 10,886 | SSEA, CIS & MEA | 9,858 | (246) | 10,104 | 3.6 | % | 7.7 | % | 7.7 | % |
5,936 | - | 5,936 | (635) | 6,571 | - | 6,571 | EA, AU & PMI DF | 6,448 | - | 6,448 | (7.9) | % | 1.9 | % | 1.9 | % |
1,903 | - | 1,903 | (15) | 1,918 | - | 1,918 | Americas | 1,843 | - | 1,843 | 3.3 | % | 4.1 | % | 4.1 | % |
316 | - | 316 | - | 316 | 316 | - | Swedish Match | - | - | - | - | % | - | % | - | % |
271 | - | 271 | (11) | 282 | 189 | 93 | Wellness & Healthcare | 101 | - | 101 | +100% | +100% | (7.9) | % | ||
$ 31,762 | $ - | $ 31,762 | $ (2,656) | $ 34,418 | $ 515 | $ 33,903 | Total PMI | $ 31,405 | $ (246) | $ 31,651 | 0.4 | % | 8.7 | % | 7.1 | % |
(a) Represents the reduction in net revenues of $246 million related to the Saudi Arabia customs assessment impacting only second quarter and full-year |
Schedule 4 (1/2) | ||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | ||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||
Adjustments of Operating Income for the Impact of Currency and Acquisitions | ||||||||||||
($ in millions) / (Unaudited) | ||||||||||||
Operating Income | Currency | Operating Income excluding Currency | Acquisitions | Operating Income excluding Currency & Acquisitions | Operating Income | Total | Excluding Currency | Excluding Currency & Acquisitions | ||||
2022 |
Quarters Ended March 31 | 2021 | % Change | |||||||||
$ 1,558 | $ (148) | $ 1,706 | $ (2) | $ 1,708 | Europe | $ 1,573 | (1.0) | % | 8.5 | % | 8.6 | % |
965 | (193) | 1,158 | - | 1,158 | SSEA, CIS & MEA | 1,011 | (4.5) | % | 14.5 | % | 14.5 | % |
685 | (72) | 757 | - | 757 | EA, AU & PMI DF | 726 | (5.6) | % | 4.3 | % | 4.3 | % |
121 | (2) | 123 | - | 123 | Americas | 134 | (9.7) | % | (8.2) | % | (8.2) | % |
(31) | - | (31) | (24) | (7) | Wellness & Healthcare | - | - | % | - | % | - | % |
$ 3,298 | $ (415) | $ 3,713 | $ (26) | $ 3,739 | Total PMI | $ 3,444 | (4.2) | % | 7.8 | % | 8.6 | % |
2022 |
Quarters Ended June 30 | 2021 | % Change | |||||||||
$ 1,474 | $ (258) | $ 1,732 | $ - | $ 1,732 | Europe | $ 1,713 | (14.0) | % | 1.1 | % | 1.1 | % |
958 | 46 | 912 | - | 912 | SSEA, CIS & MEA | 552 | 73.6 | % | 65.2 | % | 65.2 | % |
528 | (91) | 619 | - | 619 | EA, AU & PMI DF | 752 | (29.8) | % | (17.7) | % | (17.7) | % |
130 | 4 | 126 | - | 126 | Americas | 112 | 16.1 | % | 12.5 | % | 12.5 | % |
(34) | - | (34) | (24) | (10) | Wellness & Healthcare | - | - | % | - | % | - | % |
$ 3,056 | $ (299) | $ 3,355 | $ (24) | $ 3,379 | Total PMI | $ 3,129 | (2.3) | % | 7.2 | % | 8.0 | % |
2022 |
Quarters Ended September 30 | 2021 | % Change | |||||||||
$ 1,415 | $ (351) | $ 1,766 | $ - | $ 1,766 | Europe | $ 1,770 | (20.1) | % | (0.2) | % | (0.2) | % |
1,086 | 69 | 1,017 | - | 1,017 | SSEA, CIS & MEA | 888 | 22.3 | % | 14.5 | % | 14.5 | % |
533 | (100) | 633 | - | 633 | EA, AU & PMI DF | 727 | (26.7) | % | (12.9) | % | (12.9) | % |
85 | 2 | 83 | - | 83 | Americas | 121 | (29.8) | % | (31.4) | % | (31.4) | % |
(151) | 2 | (153) | (24) | (129) | Wellness & Healthcare | (51) | -(100)% | -(100)% | -(100)% | |||
$ 2,968 | $ (378) | $ 3,346 | $ (24) | $ 3,370 | Total PMI | $ 3,455 | (14.1) | % | (3.2) | % | (2.5) | % |
Schedule 4 (2/2) | ||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | ||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||
Adjustments of Operating Income for the Impact of Currency and Acquisitions | ||||||||||||
($ in millions) / (Unaudited) | ||||||||||||
Operating Income | Currency | Operating Income excluding Currency | Acquisitions | Operating Income excluding Currency & Acquisitions | Operating Income | Total | Excluding Currency | Excluding Currency & Acquisitions | ||||
2022 |
Quarters Ended December 31 | 2021 | % Change | |||||||||
$ 1,355 | $ (272) | $ 1,627 | $ - | $ 1,627 | Europe | $ 1,353 | 0.1 | % | 20.3 | % | 20.3 | % |
855 | (21) | 876 | - | 876 | SSEA, CIS & MEA | 844 | 1.3 | % | 3.8 | % | 3.8 | % |
678 | (113) | 791 | - | 791 | EA, AU & PMI DF | 631 | 7.4 | % | 25.4 | % | 25.4 | % |
100 | (15) | 115 | - | 115 | Americas | 120 | (16.7) | % | (4.2) | % | (4.2) | % |
(22) | - | (22) | (22) | - | Swedish Match | - | - | % | - | % | - | % |
(42) | 6 | (48) | - | (48) | Wellness & Healthcare | (1) | -(100)% | -(100)% | -(100)% | |||
$ 2,924 | $ (415) | $ 3,339 | $ (22) | $ 3,361 | Total PMI | $ 2,947 | (0.8) | % | 13.3 | % | 14.0 | % |
2022 |
Full Year Ended December 31 | 2021 | % Change | |||||||||
$ 5,802 | $ (1,029) | $ 6,831 | $ (2) | $ 6,833 | Europe | $ 6,409 | (9.5) | % | 6.6 | % | 6.6 | % |
3,864 | (99) | 3,963 | - | 3,963 | SSEA, CIS & MEA | 3,295 | 17.3 | % | 20.3 | % | 20.3 | % |
2,424 | (376) | 2,800 | - | 2,800 | EA, AU & PMI DF | 2,836 | (14.5) | % | (1.3) | % | (1.3) | % |
436 | (11) | 447 | - | 447 | Americas | 487 | (10.5) | % | (8.2) | % | (8.2) | % |
(22) | - | (22) | (22) | - | Swedish Match | - | - | % | - | % | - | % |
(258) | 8 | (266) | (72) | (194) | Wellness & Healthcare | (52) | -(100)% | -(100)% | -(100)% | |||
$ 12,246 | $ (1,507) | $ 13,753 | $ (96) | $ 13,849 | Total PMI | $ 12,975 | (5.6) | % | 6.0 | % | 6.7 | % |
Schedule 5 | |||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||
Net Revenues and Operating Income: Price, Volume/Mix and Cost/Other Variances | |||||||||||||||
($ in millions) / (Unaudited) | |||||||||||||||
2022 vs. 2021 | |||||||||||||||
Quarters Ended March 31 |
Quarters Ended June 30 |
Quarters Ended September 30 |
Quarters Ended December 31 |
Full Year Ended December 31 | |||||||||||
Price | Volume/Mix | Cost/Other | Price | Volume/Mix | Cost/Other | Price | Volume/Mix | Cost/Other | Price | Volume/Mix | Cost/Other | Price | Volume/Mix | Cost/Other | |
Net Revenues | |||||||||||||||
Europe | $ (11) | $ 320 | $ - | $ (31) | $ 322 | $ - | $ 8 | $ 330 | $ - | $ (88) | $ 430 | $ - | $ (122) | $ 1,402 | $ - |
SSEA, CIS & MEA | 72 | 130 | 11 | 120 | (23) | 250 | 190 | 61 | 16 | 200 | 25 | (24) | 582 | 193 | 253 |
EA, AU & PMI DF | 28 | 128 | - | 29 | (42) | - | (23) | (71) | - | (58) | 132 | - | (24) | 147 | - |
Americas | 19 | (16) | - | 24 | 8 | 3 | 30 | (4) | (1) | 29 | (11) | (6) | 102 | (23) | (4) |
Wellness & Healthcare | - | - | - | - | - | - | 11 | - | - | (21) | - | 2 | (10) | - | 2 |
Total PMI | $ 108 | $ 562 | $ 11 | $ 142 | $ 265 | $ 253 | $ 216 | $ 316 | $ 15 | $ 62 | $ 576 | $ (28) | $ 528 | $ 1,719 | $ 251 |
Operating Income | |||||||||||||||
Europe | $ (11) | $ 222 | $ (76) | $ (31) | $ 199 | $ (149) | $ 8 | $ 212 | $ (224) | $ (88) | $ 285 | $ 77 | $ (122) | $ 918 | $ (372) |
SSEA, CIS & MEA | 72 | 69 | 6 | 120 | (55) | 295 | 190 | (34) | (27) | 200 | (92) | (76) | 582 | (112) | 198 |
EA, AU & PMI DF | 28 | (18) | 21 | 29 | (162) | - | (23) | (53) | (18) | (58) | 63 | 155 | (24) | (170) | 158 |
Americas | 19 | (9) | (21) | 24 | 1 | (11) | 30 | 3 | (71) | 29 | (1) | (33) | 102 | (6) | (136) |
Wellness & Healthcare | - | - | (7) | - | - | (10) | 11 | - | (89) | (21) | - | (26) | (10) | - | (132) |
Total PMI | $ 108 | $ 264 | $ (77) | $ 142 | $ (17) | $ 125 | $ 216 | $ 128 | $ (429) | $ 62 | $ 255 | $ 97 | $ 528 | $ 630 | $ (284) |
Schedule 6 (1/2) | ||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | ||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||
Reconciliation of Operating Income to Adjusted Operating Income, excluding Currency and Acquisitions | ||||||||||||||||
($ in millions) / (Unaudited) | ||||||||||||||||
Operating Income | Special Items (a) | Adjusted Operating Income | Currency | Adjusted Operating Income excluding Currency | Acquisitions | Adjusted Operating Income excluding Currency & Acquisitions | Operating Income | Special Items (a) | Adjusted Operating Income | Total | Excluding Currency | Excluding Currency & Acquisitions | ||||
2022 |
Quarters Ended March 31 | 2021 | % Change | |||||||||||||
$ 1,558 | $ (52) | $ 1,610 | $ (148) | $ 1,758 | $ (2) | $ 1,760 | Europe | $ 1,573 | $ (19) | $ 1,592 | 1.1 | % | 10.4 | % | 10.5 | % |
965 | (6) | 971 | (193) | 1,164 | - | 1,164 | SSEA, CIS & MEA | 1,011 | (12) | 1,023 | (5.1) | % | 13.8 | % | 13.8 | % |
685 | (1) | 686 | (72) | 758 | - | 758 | EA, AU & PMI DF | 726 | (32) | 758 | (9.5) | % | - | % | - | % |
121 | (2) | 123 | (2) | 125 | - | 125 | Americas | 134 | (3) | 137 | (10.2) | % | (8.8) | % | (8.8) | % |
(31) | (19) | (12) | - | (12) | (5) | (7) | Wellness & Healthcare | - | - | - | - | % | - | % | - | % |
$ 3,298 | $ (80) | $ 3,378 | $ (415) | $ 3,793 | $ (7) | $ 3,800 | Total PMI | $ 3,444 | $ (66) | $ 3,510 | (3.8) | % | 8.1 | % | 8.3 | % |
2022 |
Quarters Ended June 30 | 2021 | % Change | |||||||||||||
$ 1,474 | $ (113) | $ 1,587 | $ (258) | $ 1,845 | $ - | $ 1,845 | Europe | $ 1,713 | $ (45) | $ 1,758 | (9.7) | % | 4.9 | % | 4.9 | % |
958 | (21) | 979 | 46 | 933 | - | 933 | SSEA, CIS & MEA | 552 | (274) | 826 | 18.5 | % | 13.0 | % | 13.0 | % |
528 | (12) | 540 | (91) | 631 | - | 631 | EA, AU & PMI DF | 752 | (18) | 770 | (29.9) | % | (18.1) | % | (18.1) | % |
130 | (4) | 134 | 4 | 130 | - | 130 | Americas | 112 | (7) | 119 | 12.6 | % | 9.2 | % | 9.2 | % |
(34) | (18) | (16) | - | (16) | (6) | (10) | Wellness & Healthcare | - | - | - | - | % | - | % | - | % |
$ 3,056 | $ (168) | $ 3,224 | $ (299) | $ 3,523 | $ (6) | $ 3,529 | Total PMI | $ 3,129 | $ (344) | $ 3,473 | (7.2) | % | 1.4 | % | 1.6 | % |
2022 |
Quarters Ended September 30 | 2021 | % Change | |||||||||||||
$ 1,415 | $ (115) | $ 1,530 | $ (351) | $ 1,881 | $ - | $ 1,881 | Europe | $ 1,770 | $ (22) | $ 1,792 | (14.6) | % | 5.0 | % | 5.0 | % |
1,086 | (67) | 1,153 | 69 | 1,084 | - | 1,084 | SSEA, CIS & MEA | 888 | (14) | 902 | 27.8 | % | 20.2 | % | 20.2 | % |
533 | (46) | 579 | (100) | 679 | - | 679 | EA, AU & PMI DF | 727 | (22) | 749 | (22.7) | % | (9.3) | % | (9.3) | % |
85 | (13) | 98 | 2 | 96 | - | 96 | Americas | 121 | (3) | 124 | (21.0) | % | (22.6) | % | (22.6) | % |
(151) | (121) | (30) | 2 | (32) | (17) | (15) | Wellness & Healthcare | (51) | (51) | - | - | % | - | % | - | % |
$ 2,968 | $ (362) | $ 3,330 | $ (378) | $ 3,708 | $ (17) | $ 3,725 | Total PMI | $ 3,455 | $ (112) | $ 3,567 | (6.6) | % | 4.0 | % | 4.4 | % |
(a) For details on Special Items, refer to Schedule 7 |
Schedule 6 (2/2) | ||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | ||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||
Reconciliation of Operating Income to Adjusted Operating Income, excluding Currency and Acquisitions | ||||||||||||||||
($ in millions) / (Unaudited) | ||||||||||||||||
Operating Income | Special Items (a) | Adjusted Operating Income | Currency | Adjusted Operating Income excluding Currency | Acquisitions | Adjusted Operating Income excluding Currency & Acquisitions | Operating Income | Special Items (a) | Adjusted Operating Income | Total | Excluding Currency | Excluding Currency & Acquisitions | ||||
2022 |
Quarters Ended December 31 | 2021 | % Change | |||||||||||||
$ 1,355 | $ 38 | $ 1,317 | $ (272) | $ 1,589 | $ - | $ 1,589 | Europe | $ 1,353 | $ (23) | $ 1,376 | (4.3) | % | 15.5 | % | 15.5 | % |
855 | 38 | 817 | (21) | 838 | - | 838 | SSEA, CIS & MEA | 844 | (19) | 863 | (5.3) | % | (2.9) | % | (2.9) | % |
678 | 31 | 647 | (113) | 760 | - | 760 | EA, AU & PMI DF | 631 | (23) | 654 | (1.1) | % | 16.2 | % | 16.2 | % |
100 | 5 | 95 | (15) | 110 | - | 110 | Americas | 120 | (4) | 124 | (23.4) | % | (11.3) | % | (11.3) | % |
(22) | (151) | 129 | - | 129 | 129 | - | Swedish Match | - | - | - | - | % | - | % | - | % |
(42) | (13) | (29) | 6 | (35) | - | (35) | Wellness & Healthcare | (1) | (18) | 17 | (100.0) | % | (100.0) | % | (100.0) | % |
$ 2,924 | $ (52) | $ 2,976 | $ (415) | $ 3,391 | $ 129 | $ 3,262 | Total PMI | $ 2,947 | $ (87) | $ 3,034 | (1.9) | % | 11.8 | % | 7.5 | % |
2022 |
Full Year Ended December 31 | 2021 | % Change | |||||||||||||
$ 5,802 | $ (242) | $ 6,044 | $ (1,029) | $ 7,073 | $ (2) | $ 7,075 | Europe | $ 6,409 | $ (109) | $ 6,518 | (7.3) | % | 8.5 | % | 8.5 | % |
3,864 | (56) | 3,920 | (99) | 4,019 | - | 4,019 | SSEA, CIS & MEA | 3,295 | (319) | 3,614 | 8.5 | % | 11.2 | % | 11.2 | % |
2,424 | (28) | 2,452 | (376) | 2,828 | - | 2,828 | EA, AU & PMI DF | 2,836 | (95) | 2,931 | (16.3) | % | (3.5) | % | (3.5) | % |
436 | (14) | 450 | (11) | 461 | - | 461 | Americas | 487 | (17) | 504 | (10.7) | % | (8.5) | % | (8.5) | % |
(22) | (151) | 129 | - | 129 | 129 | - | Swedish Match | - | - | - | - | % | - | % | - | % |
(258) | (171) | (87) | 8 | (95) | (28) | (67) | Wellness & Healthcare | (52) | (69) | 17 | (100.0) | % | (100.0) | % | (100.0) | % |
$ 12,246 | $ (662) | $ 12,908 | $ (1,507) | $ 14,415 | $ 99 | $ 14,316 | Total PMI | $ 12,975 | $ (609) | $ 13,584 | (5.0) | % | 6.1 | % | 5.4 | % |
(a) For details on Special Items, refer to Schedule 7 |
Schedule 7 (1/4) | |||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||
Reconciliation of Non-GAAP Measures | |||||
Reconciliation of Reported Operating Income to Adjusted Operating Income | |||||
($ in millions) / (Unaudited) | |||||
Quarter Ended March 31 |
Quarter Ended June 30, |
Quarter Ended September 30 |
Quarter Ended December 31 |
Full Year Ended December 31 | |
2022 | 2022 | 2022 | 2022 | 2022 | |
PMI | |||||
Reported Operating Income | $ 3,298 | $ 3,056 | $ 2,968 | $ 2,924 | $ 12,246 |
Amortization and impairment of intangibles | (38) | (36) | (139) | (58) | (271) |
Cost associated to Swedish Match AB offer | - | (52) | (217) | 154 | (115) |
Swedish Match AB acquisition accounting related item | - | - | - | (125) | (125) |
Charges related to the war in Ukraine | (42) | (80) | (6) | (23) | (151) |
Adjusted Operating Income | $ 3,378 | $ 3,224 | $ 3,330 | $ 2,976 | $ 12,908 |
Europe | |||||
Reported Operating Income | $ 1,558 | $ 1,474 | $ 1,415 | $ 1,355 | $ 5,802 |
Cost associated to Swedish Match AB offer | - | (24) | (100) | 71 | (53) |
Charges related to the war in Ukraine | (42) | (80) | (6) | (23) | (151) |
Amortization and impairment of intangibles | (10) | (9) | (9) | (10) | (38) |
Adjusted Operating Income | $ 1,610 | $ 1,587 | $ 1,530 | $ 1,317 | $ 6,044 |
SSEA, CIS & MEA | |||||
Reported Operating Income | $ 965 | $ 958 | $ 1,086 | $ 855 | $ 3,864 |
Cost associated to Swedish Match AB offer | - | (15) | (61) | 43 | (33) |
Amortization and impairment of intangibles | (6) | (6) | (6) | (5) | (23) |
Adjusted Operating Income | $ 971 | $ 979 | $ 1,153 | $ 817 | $ 3,920 |
EA, AU & PMI DF | |||||
Reported Operating Income | $ 685 | $ 528 | $ 533 | $ 678 | $ 2,424 |
Cost associated to Swedish Match AB offer | - | (11) | (45) | 32 | (24) |
Amortization and impairment of intangibles | (1) | (1) | (1) | (1) | (4) |
Adjusted Operating Income | $ 686 | $ 540 | $ 579 | $ 647 | $ 2,452 |
Schedule 7 (2/4) | |||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||
Reconciliation of Non-GAAP Measures | |||||
Reconciliation of Reported Operating Income to Adjusted Operating Income | |||||
($ in millions) / (Unaudited) | |||||
Quarter Ended March 31 |
Quarter Ended June 30, |
Quarter Ended September 30 |
Quarter Ended December 31 |
Full Year Ended December 31 | |
2022 | 2022 | 2022 | 2022 | 2022 | |
Americas | |||||
Reported Operating Income | $ 121 | $ 130 | $ 85 | $ 100 | $ 436 |
Cost associated to Swedish Match AB offer | - | (2) | (11) | 8 | (5) |
Amortization and impairment of intangibles | (2) | (2) | (2) | (3) | (9) |
Adjusted Operating Income | $ 123 | $ 134 | $ 98 | $ 95 | $ 450 |
Swedish Match | |||||
Reported Operating Income | $ - | $ - | $ - | $ (22) | $ (22) |
Swedish Match AB acquisition accounting related item | - | - | - | (125) | (125) |
Amortization and impairment of intangibles | - | - | - | (26) | (26) |
Adjusted Operating Income | $ - | $ - | $ - | $ 129 | $ 129 |
Wellness & Healthcare | |||||
Reported Operating Income | $ (31) | $ (34) | $ (151) | $ (42) | $ (258) |
Amortization and impairment of intangibles | (19) | (18) | (121) | (13) | (171) |
Adjusted Operating Income | $ (12) | $ (16) | $ (30) | $ (29) | $ (87) |
Schedule 7 (3/4) | |||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||
Reconciliation of Non-GAAP Measures | |||||
Reconciliation of Reported Operating Income to Adjusted Operating Income | |||||
($ in millions) / (Unaudited) | |||||
Quarter Ended March 31 |
Quarter Ended June 30, |
Quarter Ended September 30 |
Quarter Ended December 31 |
Full Year Ended December 31 | |
2021 | 2021 | 2021 | 2021 | 2021 | |
PMI | |||||
Reported Operating Income | $ 3,444 | $ 3,129 | $ 3,455 | $ 2,947 | $ 12,975 |
Asset impairment and exit costs | (48) | (79) | (43) | (46) | (216) |
Amortization and impairment of intangibles | (18) | (19) | (18) | (41) | (96) |
Asset acquisition cost | - | - | (51) | - | (51) |
Saudi Arabia customs assessments | - | (246) | - | - | (246) |
Adjusted Operating Income | $ 3,510 | $ 3,473 | $ 3,567 | $ 3,034 | $ 13,584 |
Europe | |||||
Reported Operating Income | $ 1,573 | $ 1,713 | $ 1,770 | $ 1,353 | $ 6,409 |
Asset impairment and exit costs | (10) | (36) | (13) | (13) | (72) |
Amortization and impairment of intangibles | (9) | (9) | (9) | (10) | (37) |
Adjusted Operating Income | $ 1,592 | $ 1,758 | $ 1,792 | $ 1,376 | $ 6,518 |
SSEA, CIS & MEA | |||||
Reported Operating Income | $ 1,011 | $ 552 | $ 888 | $ 844 | $ 3,295 |
Asset impairment and exit costs | (6) | (22) | (8) | (9) | (45) |
Saudi Arabia customs assessments | - | (246) | - | - | (246) |
Amortization and impairment of intangibles | (6) | (6) | (6) | (10) | (28) |
Adjusted Operating Income | $ 1,023 | $ 826 | $ 902 | $ 863 | $ 3,614 |
EA, AU & PMI DF | |||||
Reported Operating Income | $ 726 | $ 752 | $ 727 | $ 631 | $ 2,836 |
Asset impairment and exit costs | (31) | (17) | (21) | (22) | (91) |
Amortization and impairment of intangibles | (1) | (1) | (1) | (1) | (4) |
Adjusted Operating Income | $ 758 | $ 770 | $ 749 | $ 654 | $ 2,931 |
Schedule 7 (4/4) | |||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||
Reconciliation of Non-GAAP Measures | |||||
Reconciliation of Reported Operating Income to Adjusted Operating Income | |||||
($ in millions) / (Unaudited) | |||||
Quarter Ended March 31 |
Quarter Ended June 30, |
Quarter Ended September 30 |
Quarter Ended December 31 |
Full Year Ended December 31 | |
2021 | 2021 | 2021 | 2021 | 2021 | |
Americas | |||||
Reported Operating Income | $ 134 | $ 112 | $ 121 | $ 120 | $ 487 |
Asset impairment and exit costs | (1) | (4) | (1) | (2) | (8) |
Amortization and impairment of intangibles | (2) | (3) | (2) | (2) | (9) |
Adjusted Operating Income | $ 137 | $ 119 | $ 124 | $ 124 | $ 504 |
Wellness & Healthcare | |||||
Reported Operating Income | $ - | $ - | $ (51) | $ (1) | $ (52) |
Asset acquisition cost | - | - | (51) | - | (51) |
Amortization and impairment of intangibles | - | - | - | (18) | (18) |
Adjusted Operating Income | $ - | $ - | $ - | $ 17 | $ 17 |
Schedule 8 (1/2) | |||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||||||
Reconciliation of Adjusted Operating Income Margin, excluding Currency and Acquisitions | |||||||||||||||||||
($ in millions) / (Unaudited) | |||||||||||||||||||
Adjusted Operating Income (a) | Adjusted Net Revenues (b) | Adjusted Operating Income Margin |
Adjusted Operating Income excluding Currency (a) |
Adjusted Net Revenues excluding Currency (b) | Adjusted Operating Income Margin excluding Currency |
Adjusted Operating Income excluding Currency & Acqui- sitions (a) |
Adjusted Net Revenues excluding Currency & Acqui- sitions (b) | Adjusted Operating Income Margin excluding Currency & Acqui- sitions | Adjusted Operating Income (a) | Adjusted Net Revenues (b) |
Adjusted Operating Income Margin |
Adjusted Operating Income Margin | Adjusted Operating Income Margin excluding Currency | Adjusted Operating Income Margin excluding Currency & Acqui- sitions | |||||
2022 |
Quarters Ended March 31 | 2021 | % Points Change | ||||||||||||||||
$ 1,610 | $ 3,224 | 49.9 | % | $ 1,758 | $ 3,435 | 51.2 | % | $ 1,760 | $ 3,431 | 51.3 | % | Europe | $ 1,592 | $ 3,122 | 51.0 | % | (1.1) | 0.2 | 0.3 |
971 | 2,445 | 39.7 | % | 1,164 | 2,699 | 43.1 | % | 1,164 | 2,699 | 43.1 | % | SSEA, CIS & MEA | 1,023 | 2,486 | 41.2 | % | (1.5) | 1.9 | 1.9 |
686 | 1,587 | 43.2 | % | 758 | 1,699 | 44.6 | % | 758 | 1,699 | 44.6 | % | EA, AU & PMI DF | 758 | 1,543 | 49.1 | % | (5.9) | (4.5) | (4.5) |
123 | 424 | 29.0 | % | 125 | 437 | 28.6 | % | 125 | 437 | 28.6 | % | Americas | 137 | 434 | 31.6 | % | (2.6) | (3.0) | (3.0) |
(12) | 66 | (18.2) | % | (12) | 66 | (18.2) | % | (7) | - | - | % | Wellness & Healthcare | - | - | - | % | - | - | - |
$ 3,378 | $ 7,746 | 43.6 | % | $ 3,793 | $ 8,336 | 45.5 | % | $ 3,800 | $ 8,266 | 46.0 | % | Total PMI | $ 3,510 | $ 7,585 | 46.3 | % | (2.7) | (0.8) | (0.3) |
2022 |
Quarters Ended June 30 | 2021 | % Points Change | ||||||||||||||||
$ 1,587 | $ 3,309 | 48.0 | % | $ 1,845 | $ 3,652 | 50.5 | % | $ 1,845 | $ 3,649 | 50.6 | % | Europe | $ 1,758 | $ 3,358 | 52.4 | % | (4.4) | (1.9) | (1.8) |
979 | 2,514 | 38.9 | % | 933 | 2,551 | 36.6 | % | 933 | 2,551 | 36.6 | % | SSEA, CIS & MEA | 826 | 2,450 | 33.7 | % | 5.2 | 2.9 | 2.9 |
540 | 1,464 | 36.9 | % | 631 | 1,589 | 39.7 | % | 631 | 1,589 | 39.7 | % | EA, AU & PMI DF | 770 | 1,602 | 48.1 | % | (11.2) | (8.4) | (8.4) |
134 | 469 | 28.6 | % | 130 | 465 | 28.0 | % | 130 | 465 | 28.0 | % | Americas | 119 | 430 | 27.7 | % | 0.9 | 0.3 | 0.3 |
(16) | 76 | (21.1) | % | (16) | 76 | (21.1) | % | (10) | - | - | % | Wellness & Healthcare | - | - | - | % | - | - | - |
$ 3,224 | $ 7,832 | 41.2 | % | $ 3,523 | $ 8,333 | 42.3 | % | $ 3,529 | $ 8,254 | 42.8 | % | Total PMI | $ 3,473 | $ 7,840 | 44.3 | % | (3.1) | (2.0) | (1.5) |
2022 |
Quarters Ended September 30 | 2021 | % Points Change | ||||||||||||||||
$ 1,530 | $ 3,272 | 46.8 | % | $ 1,881 | $ 3,774 | 49.8 | % | $ 1,881 | $ 3,771 | 49.9 | % | Europe | $ 1,792 | $ 3,433 | 52.2 | % | (5.4) | (2.4) | (2.3) |
1,153 | 2,822 | 40.9 | % | 1,084 | 2,822 | 38.4 | % | 1,084 | 2,822 | 38.4 | % | SSEA, CIS & MEA | 902 | 2,555 | 35.3 | % | 5.6 | 3.1 | 3.1 |
579 | 1,407 | 41.2 | % | 679 | 1,584 | 42.9 | % | 679 | 1,584 | 42.9 | % | EA, AU & PMI DF | 749 | 1,678 | 44.6 | % | (3.4) | (1.7) | (1.7) |
98 | 474 | 20.7 | % | 96 | 481 | 20.0 | % | 96 | 481 | 20.0 | % | Americas | 124 | 456 | 27.2 | % | (6.5) | (7.2) | (7.2) |
(30) | 57 | (52.6) | % | (32) | 58 | (55.2) | % | (15) | 11 | -(100)% | Wellness & Healthcare | - | - | - | % | - | - | - | |
$ 3,330 | $ 8,032 | 41.5 | % | $ 3,708 | $ 8,719 | 42.5 | % | $ 3,725 | $ 8,669 | 43.0 | % | Total PMI | $ 3,567 | $ 8,122 | 43.9 | % | (2.4) | (1.4) | (0.9) |
(a) For the calculation of Adjusted Operating Income, Adjusted Operating Income excluding currency and Adjusted Operating Income excluding currency and acquisitions, refer to Schedule 6 | |||||||||||||||||||
(b) For the calculation of Adjusted Net Revenues, Adjusted Net Revenues excluding currency and Adjusted Net Revenues excluding currency and acquisitions, refer to Schedule 3 |
Schedule 8 (2/2) | |||||||||||||||||||
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries | |||||||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||||||
Reconciliation of Adjusted Operating Income Margin, excluding Currency and Acquisitions | |||||||||||||||||||
($ in millions) / (Unaudited) | |||||||||||||||||||
Adjusted Operating Income (a) | Adjusted Net Revenues (b) | Adjusted Operating Income Margin |
Adjusted Operating Income excluding Currency (a) |
Adjusted Net Revenues excluding Currency (b) | Adjusted Operating Income Margin excluding Currency |
Adjusted Operating Income excluding Currency & Acqui- sitions (a) |
Adjusted Net Revenues excluding Currency & Acqui- sitions (b) | Adjusted Operating Income Margin excluding Currency & Acqui- sitions | Adjusted Operating Income (a) | Adjusted Net Revenues (b) |
Adjusted Operating Income Margin |
Adjusted Operating Income Margin | Adjusted Operating Income Margin excluding Currency | Adjusted Operating Income Margin excluding Currency & Acqui- sitions | |||||
2022 |
Quarters Ended December 31 | 2021 | % Points Change | ||||||||||||||||
$ 1,317 | $ 3,064 | 43.0 | % | $ 1,589 | $ 3,584 | 44.3 | % | $ 1,589 | $ 3,584 | 44.3 | % | Europe | $ 1,376 | $ 3,242 | 42.4 | % | 0.6 | 1.9 | 1.9 |
817 | 2,686 | 30.4 | % | 838 | 2,814 | 29.8 | % | 838 | 2,814 | 29.8 | % | SSEA, CIS & MEA | 863 | 2,613 | 33.0 | % | (2.6) | (3.2) | (3.2) |
647 | 1,478 | 43.8 | % | 760 | 1,699 | 44.7 | % | 760 | 1,699 | 44.7 | % | EA, AU & PMI DF | 654 | 1,625 | 40.2 | % | 3.6 | 4.5 | 4.5 |
95 | 536 | 17.7 | % | 110 | 535 | 20.6 | % | 110 | 535 | 20.6 | % | Americas | 124 | 523 | 23.7 | % | (6.0) | (3.1) | (3.1) |
129 | 316 | 40.8 | % | 129 | 316 | 40.8 | % | - | - | - | % | Swedish Match | - | - | - | % | - | - | - |
(29) | 72 | (40.3) | % | (35) | 82 | (42.7) | % | (35) | 82 | (42.7) | % | Wellness & Healthcare | 17 | 101 | 16.8 | % | (57.1) | (59.5) | (59.5) |
$ 2,976 | $ 8,152 | 36.5 | % | $ 3,391 | $ 9,030 | 37.6 | % | $ 3,262 | $ 8,714 | 37.4 | % | Total PMI | $ 3,034 | $ 8,104 | 37.4 | % | (0.9) | 0.2 | - |
2022 |
Full Year Ended December 31 | 2021 | % Points Change | ||||||||||||||||
$ 6,044 | $ 12,869 | 47.0 | % | $ 7,073 | $ 14,445 | 49.0 | % | $ 7,075 | $ 14,435 | 49.0 | % | Europe | $ 6,518 | $ 13,155 | 49.5 | % | (2.5) | (0.5) | (0.5) |
3,920 | 10,467 | 37.5 | % | 4,019 | 10,886 | 36.9 | % | 4,019 | 10,886 | 36.9 | % | SSEA, CIS & MEA | 3,614 | 10,104 | 35.8 | % | 1.7 | 1.1 | 1.1 |
2,452 | 5,936 | 41.3 | % | 2,828 | 6,571 | 43.0 | % | 2,828 | 6,571 | 43.0 | % | EA, AU & PMI DF | 2,931 | 6,448 | 45.5 | % | (4.2) | (2.5) | (2.5) |
450 | 1,903 | 23.6 | % | 461 | 1,918 | 24.0 | % | 461 | 1,918 | 24.0 | % | Americas | 504 | 1,843 | 27.3 | % | (3.7) | (3.3) | (3.3) |
129 | 316 | 40.8 | % | 129 | 316 | 40.8 | % | - | - | - | % | Swedish Match | - | - | - | % | - | - | - |
(87) | 271 | (32.1) | % | (95) | 282 | (33.7) | % | (67) | 93 | (71.6) | % | Wellness & Healthcare | 17 | 101 | 16.8 | % | (48.9) | (50.5) | (88.8) |
$ 12,908 | $ 31,762 | 40.6 | % | $ 14,415 | $ 34,418 | 41.9 | % | $ 14,316 | $ 33,903 | 42.2 | % | Total PMI | $ 13,584 | $ 31,651 | 42.9 | % | (2.3) | (1.0) | (0.7) |
(a) For the calculation of Adjusted Operating Income, Adjusted Operating Income excluding currency and Adjusted Operating Income excluding currency and acquisitions, refer to Schedule 6 | |||||||||||||||||||
(b) For the calculation of Adjusted Net Revenues, Adjusted Net Revenues excluding currency and Adjusted Net Revenues excluding currency and acquisitions, refer to Schedule 3 |
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Philip Morris International Inc. published this content on 28 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 March 2023 19:36:01 UTC.