Hong Kong:
Gateway to Asia
Asia is our largest Region by volume, net revenues, excluding excise taxes, and operating companies income – and a key driver of our 2012 results. From left to right, Shikha Mahajan, Manager Commercial Project, Vincci Lam, Brand Manager, Max Liu, Manager Sales & Distribution Hong Kong, and Hoo Yeun Kim, Manager Marketing Hong Kong & Macau, work in our Hong Kong offices, home also to our Regional headquarters. Their contribution to our business performance in this market, where market share in 2012 was up by 8.7 points since the spin-off to 57.6%, epitomizes our broader achievements in this dynamic part of the world.
South Korea:
State-of-the-Art Manufacturing
From left to right, Chang Ho Seo, Secondary Team Leader, Chun Ho Lee, Production Technician, Sik Kim, Supervisor Project Engineering, Chang Soo Kim, Electronic Technician, Woo Kyeong Jeong, Technical Trainer, Jin Myung Kim, Manager Operations Organization Development, Yong Seob Kim, Production Technician, and Bong Rae Cho, Mechanical Technician, were instrumental in successfully completing a complex project to relocate production to a new state-of-the-art facility, which qualified for commercial production in July 2012. PMI is the number one international manufacturer in South Korea, with a 2012 market share of 19.2%. Our success is driven by exciting new innovative brand launches, such as the recessed filter Parliament Hybrid – a non-menthol-to-menthol brand using capsule-in-filter technology. Launched in July 2012, the brand achieved a share of 0.7% by the end of the year.
The Philippines:
Flawless Integration
The integration of our local affiliate with Fortune Tobacco Corporation, which began following their business combination in 2010 resulting in the establishment of PMFTC Inc., continued flawlessly last year. From left to right, Rally Romo, Manager Internal Controls, April Gile, Information Systems Analyst, Angelica Quiambao, Compensation & Benefits Analyst, and Michael Aguilar, Trade Marketing Executive, are former employees of both companies who today work together seamlessly, contributing to our 2012 market share of 90.7%, driven by the two most popular brands in the market, Fortune and Marlboro.
Indonesia:
A Jewel in Our Crown
Since its acquisition in 2005, Sampoerna – which turned 99 years old in 2012 and reached a sales milestone of more than 100 billion cigarettes – has rapidly become a jewel in our crown. Over the same period, the company has increased its share, doubled its sales volume and quadrupled its profits. The company was PMI's largest volume contributor in 2012, driven by growth from each of its top five brands led by Dji Sam Soe and Sampoerna A, and grew its market leadership share by 2.8 points to 35.6%. The company’s success was based on the contribution of more than 85,000 “kretek” hand-rollers. The 16 featured here were among the top performers last year. From left to right, (front row) Sulastri, Jumaiyah Fauziah, Siti Maisyaroh, Mujiati, Rasmiati, Wahyuningsih, Siti Halimah, Ning Sumaiyah, (back row) Mukayah, Mu'Anah, Jumiaten, Rubiatin, Lasmi, Muryati, Muhrisatur, and Sae Nur Laeni.
Vietnam:
A Promising Future
Our business in Vietnam is initially focused on Marlboro and six key cities that account for more than 30% of the total cigarette industry volume. Thanks to the efforts of employees such as, from left to right, Thanh Tat Mai, Manager Trade Marketing & Key Accounts, and Phuong Vu, Chief Accountant, our share of the expanding premium segment in these cities increased from 37% in 2011 to 45% at the end of last year.
Japan:
Continuous Innovation
Japan is a market where continuous innovation is a hallmark of both adult smoker preference and our own performance. It is also a market where menthol, 100mm format and light-tasting products are among the most popular, with total market segment shares in 2012 of over 25%, approximately 30% and close to 75%, respectively. Ensuring that we lead the way in bringing relevant product offerings to consumers in all these segments are our more than 1,800 employees in Japan, among them, from left to right, Mami Sakamaki, Brand Manager Marlboro, Kayoko Sonoda, Manager Supply Chain & Logistics, Tatsuya Suzuki, District Manager, and Kildine Pache, Manager Human Resources General & Administration. Examples of new national launches in 2012 included Marlboro Black Menthol Edge, Lark Hybrid and Virginia S. Ice Pearl, which helped us achieve a full-year total market share of 27.7%, up by 3.8 points since the spin-off.
