Case 1:20-cv-00393-LMB-TCB Document 1406-12 Filed 08/12/22 Page 1 of 3 PageID# 35119
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`Exhibit 12
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`Case 1:20-cv-00393-LMB-TCB Document 1406-12 Filed 08/12/22 Page 2 of 3 PageID# 35120
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`Philip Morris International Inc.
`2021 Fourth-Quarter Conference Call
`February 10, 2022
`
`NICK ROLLI
`
`(SLIDE 1.)
`
`Welcome. Thank you for joining us. Earlier today, we issued a press release
`containing detailed information on our 2021 fourth-quarter and full year
`results. You may access the release on www.pmi.com.
`
`(SLIDE 2.)
`
`A glossary of terms, including the definition for reduced-risk products, or
`"RRPs," as well as adjustments, other calculations and reconciliations to the
`most directly comparable U.S. GAAP measures and additional heated
`tobacco unit market data are at the end of today’s webcast slides, which are
`posted on our website. Unless otherwise stated, all references to IQOS are to
`our IQOS heat-not-burn products, and all references to smoke-free products
`are to our RRPs.
`
`Growth rates presented on an organic basis reflect currency-neutral
`underlying results. Following the acquisitions of Fertin Pharma, OtiTopic and
`Vectura Group, PMI added the "Other" category in the third quarter of 2021.
`Business operations for the "Other" category are evaluated separately from
`the geographical operating segments.
`
`(SLIDE 3.)
`
`Today’s remarks contain forward-looking statements and projections of future
`results. I direct your attention to the Forward-Looking and Cautionary
`Statements disclosure in today’s presentation and press release for a review
`of the various factors that could cause actual results to differ materially from
`projections or forward-looking statements.
`
`(SLIDE 4.)
`
`Please also note the additional Forward-Looking and Cautionary Statements
`related to COVID-19.
`
`It’s now my pleasure to introduce Jacek Olczak, Chief Executive Officer and
`Emmanuel Babeau, Chief Financial Officer. Over to you, Jacek.
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`1
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`Case 1:20-cv-00393-LMB-TCB Document 1406-12 Filed 08/12/22 Page 3 of 3 PageID# 35121
`In terms of HTUs, after launching over 50 new non-ILUMA SKUs in Q4, we
`plan to continue expanding our portfolio across platforms, geographies and
`price points this year.
`
`(SLIDE 27.)
`
`We continue to commercialize IQOS VEEV with very promising results in the
`first group of markets, where we started in our own channels with a limited
`range of taste variants and nicotine levels. IQOS VEEV is a premium product
`providing a superior experience, and the commercial infrastructure of IQOS
`allows us to deploy efficiently and at scale through a bespoke route-to-market
`approach. As we start to expand distribution and the consumable offering we
`observe signs of increased uptake, and clear positive consumer feedback
`relative to competitive products.
`
`We see encouraging success in Italy and the Czech Republic, reaching
`double-digit offtake shares of closed-system pods; with rapid progress also
`visible in Croatia within 3 months of launch. After launching in Canada and
`Ukraine in the fourth quarter we plan to add more markets in 2022, with timing
`subject to device availability.
`
`We also continue preparations to apply for a PMTA from the U.S. FDA, and
`now prudently assume readiness for filing in early 2023 given further clarity on
`the required preparatory steps.
`
`(SLIDE 28.)
`
`An additional exciting mid-term growth opportunity is in the nicotine pouch
`category, where we aim to become a leading player with the Shiro brand.
`Nicotine pouches provide a convenient smoke-free alternative for adult
`smokers, and while still early in many markets we see Shiro playing an
`important role in our smoke-free portfolio over the coming years.
`
`Following the acquisitions of AG Snus and Fertin Pharma, we have
`established a base of product development and manufacturing expertise.
`Although we are still learning about this promising category, our IQOS
`commercial infrastructure allows for a fast roll-out and we plan a number of
`launches over the coming quarters. The first major activity is the full re-launch
`of the revitalized Shiro portfolio in the Nordics this month from its more limited
`prior presence, with full commercial activity and a broad portfolio of flavors
`and strength variants.
`
`Separately, following feedback from the 2021 consumer test of our platform 2
`carbon
`tip product,
`the design of our current
`technology has been
`discontinued. We are assessing alternative designs for this consumer
`segment.
`
`(SLIDE 29.)
`
`Turning now to our nascent business beyond nicotine, the 2021 acquisitions
`of Fertin, Vectura and Otitopic provide a base for building critical respiratory
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