This Investor Information posting includes summaries of information set forth in
PMI’s quarterly report Form 10-Q for the quarter ended June 30, 2024, annual reporton Form 10-K for the year ended December 31, 2023, as well as press releases andpresentations referenced in this document, and such summaries are qualified byreference to such documents, which are available at www.pmi.com/investor-relations

Web Site: www.pmi.com
PMI Investor Relations App:The PMI Investor Relations App provides users with simple, comprehensive and upto-date access to all PMI’s previously disclosed investor relations materials such as:press releases, SEC filings, investor materials, and live and archived audio webcasts ofearnings calls and investor presentations

iOS Device
Free download fromApple App Store

Android Device
Free download from
Google Play

Table of Contents
SectionSlide

1.

Q2/H1 2024 and 2023 Results

52.

Smoke-Free Transformation

27

3.

Combustibles Strategy and Performance

58

4.

Tobacco Harm Reduction: Regulatory & Science66

5.

Sustainability at PMI

94

6.

Capital Structure and Shareholder Returns

104

7.

2024-2026 Targets and 2030 Vision

109

8.

Appendix and Reconciliation of non-GAAP Measures

114

1

Reference Materials
You will find all our latest public disclosures and other investor information for Philip
Morris International on the IR website including:• Earnings Results (Latest Earnings Q2, 2024, published July 23, 2024)• PMI 2023 Annual Report• Recast Shipment Volume and Segment Information (February 27, 2024)• CAGNY 2024 (February 21, 2024)• 2023 Investor Day (September 28, 2023)• Video Highlights
Additionally, you can access our Sustainability Resources and PMI Science2Introduction• A glossary of terms as well as adjustments, other calculations and reconciliations to
the most directly comparable U.S. GAAP measures for non-GAAP financial measures
cited in this presentation are available in Exhibit 99.2 to the company's Form 8-K
dated July 23, 2024 and on our Investor Relations website with additional nonGAAP reconciliations available at the end of this presentation3

Forward-Looking and Cautionary Statements• This presentation contains projections of future results and goals and other forward-looking statements, including statements regarding expectedfinancial or operational performance; capital allocation plans; investment strategies; market expectations; and dividends. Achievement of future results
is subject to risks, uncertainties and inaccurate assumptions. In the event that risks or uncertainties materialize, or underlying assumptions prove
inaccurate, actual results could vary materially from those contained in such forward-looking statements. Pursuant to the “safe harbor” provisions of thePrivate Securities Litigation Reform Act of 1995, PMI is identifying important factors that, individually or in the aggregate, could cause actual results andoutcomes to differ materially from those contained in any forward-looking statements made by PMI• PMI's business risks include: excise tax increases and discriminatory tax structures; increasing marketing and regulatory restrictions that could reduce
our competitiveness, eliminate our ability to communicate with adult consumers, or ban certain of our products in certain markets or countries; healthconcerns relating to the use of tobacco and other nicotine-containing products and exposure to environmental tobacco smoke; litigation related totobacco and / or nicotine use and intellectual property; intense competition; the effects of global and individual country economic, regulatory andpolitical developments, natural disasters and conflicts; the impact and consequences of Russia's invasion of Ukraine; changes in adult smoker behavior;
the impact of natural disasters and pandemics on PMI's business; lost revenues as a result of counterfeiting, contraband and cross-border purchases;
governmental investigations; unfavorable currency exchange rates and currency devaluations, and limitations on the ability to repatriate funds; adversechanges in applicable corporate tax laws; adverse changes in the cost, availability, and quality of tobacco and other agricultural products and raw
materials, as well as components and materials for our electronic devices; and the integrity of its information systems and effectiveness of its data
privacy policies. PMI's future profitability may also be adversely affected should it be unsuccessful in its attempts to introduce, commercialize, and growsmoke-free products or if regulation or taxation do not differentiate between such products and cigarettes; if it is unable to successfully introduce new
products, promote brand equity, enter new markets or improve its margins through increased prices and productivity gains; if it is unable to expand its
brand portfolio internally or through acquisitions and the development of strategic business relationships; if it is unable to attract and retain the best
global talent, including women or diverse candidates; or if it is unable to successfully integrate and realize the expected benefits from recent
transactions and acquisitions. Future results are also subject to the lower predictability of our smoke-free business’ performance• PMI is further subject to other risks detailed from time to time in its publicly filed documents, including PMI’s Annual Report on Form 10-K for the
fourth quarter and year ended December 31, 2023 and the Form 10-Q for the quarter ended June 30, 2024. PMI cautions that the foregoing list ofimportant factors is not a complete discussion of all potential risks and uncertainties. PMI does not undertake to update any forward-looking statementthat it may make from time to time, except in the normal course of its public disclosure obligations
4

Championing a Smoke-Free World

Section 1:
Q2/H1 2024 and FY 2023 Results

1

Outstanding Q2/H1 Performance Across All Categories• Record H1 delivery on organic top-line and (expandemic) OI growth⎼ Strong IQOS & ZYN underlying performance delivers
excellent growth despite supply constraints & EU flavor ban⎼ Multi-category momentum with international ZYN & VEEV⎼ Combustible gross margin recovery ahead of target⎼ Exceptional organic OI growth, strong margin expansion⎼ Pro-active steps drive robust EPS growth despite entire
forecast(a) FY 2024 currency headwind occurring in H1(a) At prevailing exchange rates. Source: PMI Financials or estimates. Q2, 2024 Earnings, presented July 23, 2024

6

1

Impressive Results Across All Key Metrics
Q2’24

H1’24
Adj. incl.
Curr. & Acq.

Organic

Organic

Adj. incl.
Curr. & Acq.

Shipment Volume+2.8%

Net Revenues

+9.6%

+5.6%

+10.2%+7.0%

Operating Income+12.5%+3.5%+17.0%+7.1%(Variance vs. PY)(Variance vs. PY)(Variance vs. PY)+3.2%

Curr. Neutral

Adj. Diluted EPS+10.6%(Variance vs. PY)

Curr. Neutral(0.6)%+4.0%+16.8%

Note: Growth rates presented on an organic basis reflect currency-neutral adjusted results, excluding acquisitions. Shipment volume includes HTUs, cigarettes and oral SFP excluding
snuff, snuff leaf and U.S. chew. Source: PMI Financials or estimates. Q2, 2024 Earnings, presented July 23, 2024

7

1Continued Volume Growth Driven by Smoke-Free Products(shipments, bn units)
Q2’24

H1’24

Shipments
Change vs. PY

Adj. IMS
Change vs. PY+2.8%+20.0%+1.9%+20.2%

Oral SFP(a)

197.3
4.2

HTUs

35.5

+13.1%+10.2%

Cigarettes

157.6

+0.4%

(0.1)%

Total

Q2’24

Shipments
Adj. IMS
Change vs. PY Change vs. PY

377.9
8.4

+3.2%
+27.4%+2.4%+28.9%+11.2%+13.1%
68.7+16.8%

11.4%

300.8

Flat

+0.1%

H1’24

(a) Volumes shown in pouches or pouch equivalent, excluding snuff, snuff leaf and U.S. chew
Note: SFP volumes represent HTUs and Oral SFP. Total may not foot due to rounding. Source: PMI Financials or estimates. Q2, 2024 Earnings, presented July 23, 2024

8

1

OI Margin Expansion Supported by Gross Margin and SG&A
H1’24 Adjusted OI Margin
40.7%+1.0pp(2.3)pp

SG&A+1.4pp

38.4%

38.4%

Currency &Acquisitions

Gross Margin

H1'23

H1'24

H1’24
(excl. Curr. & Acq.)

9

Note: Sum of the drivers may not add up to total due to rounding. Source: PMI Financials or estimates. Q2, 2024 Earnings, presented July 23, 2024

1

Strong ZYN Momentum, Despite Short-Term Supply Constraints
ZYN and U.S. Nicotine Pouch Category

ZYN Category Share(Offtake volume change vs. PY, %)ZYN(13-week period, %)U.S. Nicotine Pouch Category

Retail Value Share

90%
79%
63%
38%
39%

Q1

46%

Q2

Q3
2023

76.8

75.8

77.7

79.3

68.4

71.0

73.0

74.3

67.4

Q3

Q4

Q1

54%

50%
54%

75.6

65%

Q4

75.6

68.6

73%
54%

Q1

Q2
2024

Volume Share

Q1

Q2

2023

Source: PMI Financials or estimates, Circana, LLC, Nicotine Pouches, Week ending 6/30/24. Q2, 2024 Earnings, presented July 23, 2024

Q2

2024
10

1

PMI HTUs: Second-Largest ‘Brand’ in IQOS Markets
Share in IQOS Markets (Q2’24)(a)ExcludingIndonesia

11.9%

10.5%

9.8%

8.1%

#2

3.8%

Marlboro PMI HTUs Winston

Camel

3.0%

Gudang Chesterfield
Garam

L&M

(a) Reflects markets (including Indonesia, following broader commercialization in the market) where IQOS is available in key cities or nationwide at June 30, 2024
Note: All ‘brands’ except ‘PMI HTUs’ include cigarettes only. Reflects PMI in-market sales volume as a percentage of total estimated sales volume for cigarettes and HTUs, including
cigarillos in Japan. Source: PMI Financials or estimates as of July 10, 2024

11

1

Europe: Robust Underlying IQOS Growth, Flavor Ban Volatility
11.1
Adj. IMS(a)(in billion units)

12.0

11.6

12.4

HTU Adjusted SoM
9.3%

Q1

10.2%

9.7%
9.0%

12.9

12.6

9.8%

8.6%

Q2

Q3
2023

(a) Based on a four-quarter moving average. Source: PMI Financials or estimates. Q2, 2024 Earnings, presented July 23, 2024

Q4

Q1

Q2
2024
12

1

Impressive Progress in European Key Cities
PMI HTU Offtake Share (Q2’24)

Change vs. PY+1.4pp +2.8pp +1.5pp +0.9pp +1.7pp +0.3pp +2.2pp +0.4pp +1.9pp +0.8pp +1.3pp +3.4pp +0.0pp +5.3pp +2.5pp +4.8pp

39.0%

9.2% 11.0%
6.5% 7.3% 7.8% 8.5%
Stockholm Amsterdam

MadridViennaLondonMunich

15.0% 15.5%

Bucharest

Sofia

17.5%

Zurich

21.4% 21.9%

PragueWarsaw

24.6%

Lisbon

28.0% 28.8%

Rome

Bratislava

30.7%

Athens

Budapest

13

Source: PMI Financials or estimates. Q2, 2024 Earnings, presented July 23, 2024

1

Promising Key City Growth Across Global Markets
PMI HTU Offtake Shares (Q2’24)

Change vs. PY+0.6pp +1.1pp +3.3pp +0.2pp +1.2pp +1.8pp +0.5pp +0.5pp +0.7pp +1.9pp +1.3pp +1.8pp +3.3pp +2.0pp +6.4pp

20.2%

12.0% 12.3%
7.8%
2.6%
Toronto

3.2%

3.3%

3.7%

3.8%

MexicoCity

RiyadhTunis

Manila

4.5%

4.6%

Urban
Jakarta

Rabat

Santo
Domingo

13.1%

15.1%

17.3%

8.6%

Cairo

Kuala
Lumpur

Seoul

Belgrade

Duty Free Podgorica(a)(Airports)(a) Duty Free includes airports where IQOS is available, offtake share based on Apr-May’24 vs. Apr-May’23.
Note: Urban Jakarta represents West, Central and South Jakarta which include an estimated 1.5 million Legal Age Nicotine Users. Cairo represents Urban Cairo, Manila represents Metro
Manila, Tunis represents Greater Tunis. Source: PMI Financials or estimates. Q2, 2024 Earnings, presented July 23, 2024

Beirut14

1

Japan: Continued Strong IQOS Performance
9.0

Adj. IMS(a)9.3

HTU Adjusted SoM(in billion units)

26.2%

9.6

10.2

9.9

26.3%

26.6%

Japan HTU Offtake Share(b)

10.5

Tokyo

29.4%

29.2%

27.5%

32.5%

35.2%

+2.7ppSendai
30.3%

33.2%

+2.9pp
Fukuoka+4.3pp

Q1

Q2

Q3

Q4

2023

Q1

Q2

28.6%
Q2’23

32.9%

Q2’24

2024

(a) Based on a four-quarter moving average. (b) Based on 3 C-Store Chains offtake. Base includes cigarettes, cigarillos and HTUs
Source: PMI Financials or estimates. Q2, 2024 Earnings, presented July 23, 202415

1

Premium Innovation Driving IQOS & HnB Category
Japan HTU Offtake Share(a)Tokyo Monthly Offtake Category Share(a)Total PMI

30%

Combustibles

29.9%
25%

TEREA
20%

Mar’24
50.8%

20.4%

15%

8.8%

5%
0%

49.2%

SENTIA

10%

HTUs

2021

2022

2023

2024

(a) Based on 3 C-Store Chains offtake. Base includes cigarettes, cigarillos and HTUs
Source: PMI Financials or estimates. Q1, 2024 Earnings, presented April 23, 2024

2015

2017

2019

2021

2023
16

1

Japan: ~40% Category Penetration and Growing Double-DigitHnB Category Share of Total Tobacco

20.6%

2018

22.5%

2019

25.8%

33.8%

29.6%

37.9%

~40%
Q4’23

2020

2021

2022

PMI HTU Adj. SoM(a)

2023

14%
Adj. IMS change
vs. PY, %

8%

9%

4%

9%

26.7%

23.4%
21.1%

PMI Outgrowing HnB Category in 2023

18.8%
16.6%

~80%

~70%
PMI Share of HnB,
2022

PMI Share of HnB
Category Growth, 2023

2019

2020

2021

2022

2023

(a) Adjusted market share for HTUs is defined as the total in-market sales volume for PMI HTUs as a percentage of the total estimated sales volume for cigarettes, HTUs and cigarillos andexcluding the impact of estimated distributor and wholesaler inventory movements
17
Note: all data presented on Adj. IMS basis. Source: PMI Financials or estimates. CAGNY 2024, presented February 21, 2024

1

FY, 2023: Excellent Net Revenue and EPS Growth
Net Revenues+7.8%

Operating Income+3.7%

Adj. Diluted EPS(Currency neutral variance vs. PY)+11.0%

Adj. Diluted EPS$6.01(Organic variance vs. PY)(Organic variance vs. PY)(a) Swedish Match pro forma, including $38m of SMD logistics net revenue in FY, 2022 base and $15m in 2023 prior to June divestiture
Note: Growth rates presented on an organic basis reflect currency-neutral adjusted results, excluding acquisitions
Source: PMI Financials or estimates. Q4, 2023 Earnings, presented February 8, 2024

+20%

2023 Swedish Match
Net Revenue
GrowthExcl. Currency(a)181Third Consecutive Year of Volume Growth Driven by HTUs
(billion units)

Full Year

Changevs. PY

Adj. IMS
Change vs. PY

684.6

Oral Nicotine(a)(in million cans)

799.3+16.8%

731.1

Total

738.2

+1.0%

+1.5%

109.2

HTUs

125.3

+14.7%+14.8%

621.9

Cigarettes

612.9(1.4)%(0.7)%

FY, 2022

FY, 2023(a) Pro forma, incl. PMI & Swedish Match oral nicotine volumes. Excludes snuff, snuff leaf and U.S. chew
Note: Total may not foot due to rounding
Source: PMI Financials or estimates. Q4, 2023 Earnings, presented February 8, 2024

19

1

Total Cigarette & HTU Industry Volume Trend (2014-2023)(% Change vs. PY)

2.2%

2014

2015

2016

2017

2018

2019

0.1%

2020
2021

(2.5)% (2.3)%

2022(1.6)%(1.7)% (1.8)%(2.1)%

2023(2.9)%(5.4)%
Note: Includes cigarillos in Japan. Excluding China and the U.S.
Source: PMI Financials or estimates as of July 10, 2024

20

1

Leadership in Top Industry Volume Markets (2023)(billion units)

Top-10 LMIC(a)Indonesia

292

Russia203

Turkey137

India

Top-10 Non-LMIC(a)PMI SoM
29% #1Japan

32% #2Italy

50% #1PMI SoM
40%

#2

73

54%

#1

South Korea

72

19%

#2

149

105

5%

Germany

69

38%

#1

Vietnam86<1%

Poland

57

42%

#1

Bangladesh

83

<1%

Spain

44

29%

#1

Egypt

74

33% #2

France

30

42%

#1

Brazil70

22% #2

Romania

29

19%

#3

Iran

48

Not present

Taiwan27

7%Philippines

43

55% #1

Saudi Arabia

19

37%

LMIC:

24%

Non-LMIC:#137%(a) Top-10 markets ranked by 2023 total industry volume, excluding the U.S., China and Duty Free. LMIC classification (Low to Middle-Income) based on World Bank Classification issued in July 2023
Note: As per our Annual Report on Form 10-K for the year ended December 31, 2023, we do not sell products in Iran, North Korea and Syria. Reflects cigarettes and HTUs (where applicable) and includes
cigarillos in Japan. Source: PMI Financials or estimates as of July 10, 2024

21

12023 PMI Total Market ShareOthers

PMI
PMI

14.1%

Others

28.4%

BAT

JT
IMB
IMB
AltriaChina(a)JT

Global(a) Excluding CNTC license production of Marlboro and Parliament cigarettes (2.3 billion units in 2023)
Note: Reflects cigarettes and HTUs. Industry volume includes cigarillos in Japan
Source: PMI Financials or estimates as of July 10, 2024

BAT

International excl. U.S. & China22

12023 PMI Adjusted Net Revenues by Currency
USD

Change vs. 2022 (pp)

+5pp

10%
Emerging(a)
-3pp

41%

$35.3

28%

billion

Euro
-1pp

21%
Other Developed(b)-1pp(a) Includes Czech Krona, Egyptian Pound, Indonesian Rupiah, Mexican Peso, Philippine Peso, Polish Zloty, Russian Ruble and Turkish Lira; (b) JPY, CHF, KRW, GBP, ILS, AUD, HKD, NOK,
SGD, SEK, DKK, CAD and NZD; Note: Reflects currencies in which net revenues are generated. Market classification is based on S&P Dow Jones Indices’ 2023 country classification;
Source: PMI Financials or estimates

23

1

Delivering USD Performance is a Key Priority(Presented at CAGNY 2024)• Best-in-class constant currency growth2023 Net Revenues by Currency• Increasing USD revenue contribution
with rapid smoke-free growth in the U.S.

24%

• Currency risk mitigation:⎼ Debt matching: >60% effectively in EUR

Emerging(a)50%⎼ Hedging programs: JPY rolling hedge⎼ Strategic cost allocation• Focused on delivering strong USD growthin 2024 and beyond

36%
Other
Developed(b)

13%

Euro

28%

USD

9%

13%

Combustibles

Smoke-Free Products

76%
50%

27%

(a) Includes Czech Krona, Egyptian Pound, Indonesian Rupiah, Mexican Peso, Philippine Peso, Polish Zloty, Russian Ruble and Turkish Lira. (b) JPY, CHF, KRW, GBP, ILS, AUD, HKD, NOK,
SGD, SEK, DKK, CAD and NZD. Note: Reflects currencies in which net revenues are generated. Source: PMI Financials or estimates. CAGNY 2024, presented February 21, 2024

24

12023 PMI Adjusted Cost of Goods Sold
Tobacco Leaf &Cloves15%

52%

Others(a)$13

DirectMaterials

22%billion11%
Shipping &Distribution(a) Conversion, fixed manufacturing expenses, devices and other costs. Note: Excludes amortization and impairment of intangibles ($58 million), Swedish Match acquisition accounting
related item ($18 million), and charges related to the war in Ukraine ($15 million). Including these impacts total Cost of Goods Sold is $12.9 billion
Source: PMI Financials or estimates

25

12023 PMI Adjusted Costs by Currency
Total

Currency (%)($ billion)

USD

EUR

CHF

IDR(d)

Other

Tobacco(a)

1.9

26

50

̶

18

6

Direct Materials

2.8

32

61

̶

1

6

Other COGS(b)

8.1

29

20

5

16

30

Marketing, Overhead &Other Costs above OI

9.1

16

20

18

3

43

Total Adjusted Costs(c)

21.9

24

28

10

9

30

(a) Including cloves; (b) Other manufacturing related costs and shipping and distribution; (c) Total costs above adjusted OI of $21.9 billion = adjusted cost of sales of $12.8 billion +adjusted marketing, overhead & other costs above OI of $9.1 billion; (d) Indonesian rupiah
Source: PMI Financials or estimates

26

Championing a Smoke-Free World

Section 2:
Smoke-Free Transformation

2

Structural Smoke-Free Growth, Accelerating Returns• Clear demand for smoke-free products among 1bn+
smokers• Structural shift: 10 years of double-digit smoke-freecategory growth, momentum continues:⎼ All SFP categories and geographies have growth⎼ Growth rates & margin profiles are not uniform⎼ Upfront investment, higher returns than cigarettes• PMI: substantial, selective long-term investments inpremium brands, unrivaled commercial and scientificcapabilities• Accelerating growth for PMI smoke-free business
Source: CAGNY 2024, presented February 21, 202428

2

IQOS: Creating $10bn+ Smoke-Free Business in Under a Decade
Annual Net Revenues($ billion)

(a)

Meta

$10 billion milestone$10

Amazon

Tesla

Initial Year with
Profitability(c)

$5

$0
0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Years Since Founding / Inception(b)(a) Total smoke-free product net revenues. In 2022, IQOS accounted for $9.5 billion of PMI’s $10.2 billion total smoke-free net revenues(b) 2012 used for PMI’s smoke-free product net revenues, reflecting project endorsement. Company founding year used for other companies(c) Reflects the year when operating income was positive for the first time. For IQOS, it reflects the year when product contribution for smoke-free products was positive for the first time
Source: PMI Financials, Bloomberg. Investor Day 2023, presented September 28, 2023

29

2

IQOS Net Revenues Surpassed Marlboro in Q4, 2023
PMI Annual Net Revenues(a)($ billion)

$12
$10
$8
$6
$4
$2
$0
2015

2016

2017

2018

(a) Marlboro includes Marlboro combustibles, IQOS represents Heat-not-Burn net revenues
Source: PMI Financials or estimates. CAGNY 2024, presented February 21, 2024

2019

2020

2021

2022

2023

30

2

Smoke-Free Rapidly Approaching $15 billion Top-Line
Close toAnnual Smoke-Free Net Revenues$15bn($ billion)

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Est.(a)(a) Forecast provided in Q2, 2024 Earnings, presented July 23, 2024, at prevailing rates
Note: Smoke-Free refers to Smoke-Free Business. Source: PMI Financials or estimates. Based on CAGNY 2024, presented February 21, 2024

31

2

Smoke-Free Transformation Drives More Sustainable Growth
Model
Combustible• Volume decline driven by seculartrend and adult smokers switching to
SFPs• More than offset by price increases• Focus on productivity and cost
efficiencies
Resilient performancecomplementing smoke-free business
Source: Investor Day 2023, presented September 28, 2023

Smoke-Free• Volume growth at substantiallyhigher net revenue per unit
• Higher commercial investment as
new markets launched• Higher product contribution per unit
• Volume growth prioritized overpricingCore driver of
top- and bottom-line growth32

2

Substantial Investment in Best-in-Class Capabilities
Cumulative Smoke-Free Product Investments(in $ billion)

12.5

2.4
2015

3.2

2016

4.6

2017

8.1

7.2

6.2

2018

2019

2020

9.2

2021

10.7

2022

2023

Note: Investments reflect research, product and commercial development, production capacity, scientific substantiation, and studies on adult smoker understanding. Include investment
since 2008. Does not include commercial deployment costs
Source: PMI Financials or estimates

33

2

Becoming Substantially Smoke-Free By Net Revenues
Smoke-Free Net Revenues(a)(% of Total PMI Adj. Net Revenues)
>2/3

29.5%

32.1%

36.4%

38.3%

24.2%
19.2%

0.7%
2015

13.1%

14.3%

2017

2018

3.3%
2016

2019

2020

2021

2022

2023

H1'24

2030
Vision(a) Smoke-free represents Smoke-Free BusinessNote: 2023 adj. net revenues exclude a reduction of $80 million related to the termination of distribution arrangement in the Middle East. Including that reduction SFP net revenues out of total PMI net
revenues is 36.5%. Source: PMI Financials or estimates34

2

Smoke-Free: Attractive & Substantial Growth Opportunity
2023 Net Revenue Per Unit

2023 Gross Profit Per Unit

(Index = Equivalent Cigarette Volumes)(Index = Equivalent Cigarette Volumes)

~2.6

~2.5
1

1
Equivalent
Cigarette Volumes

Smoke-Free
Products (a)Equivalent
Cigarette Volumes

Smoke-Free
Products(a)(a) Includes heat-not-burn consumables and devices and U.S. ZYN; Note: 1 can of U.S. ZYN contains 15 pouches
Source: PMI Financials or es mates. CAGNY 2024, presented February 21, 2024

35

2

Increasingly Smoke-Free, Profitability Accelerating
Shipment Volumes

Adj. Net Revenues(Q4, 2023)

80%

Cigarettes

Adj. Gross Profit(Q4, 2023)(Q4, 2023)

Total SFPs

Total SFPs

20%

39%

18%
HTUs

61%
Combustibles

2%

Oral
Nicotine(a)32%
Smoke-Free
Inhalable
Products(b)Combustibles

41%
Smoke-Free
Products

6%1%(a) Excludes snuff, snuff leaf and U.S. chew; (b) Includes heat-not-burn and e-vapor
Note: Total may not foot due to rounding
Source: PMI Financials or es mates. CAGNY 2024, presented February 21, 2024

59%

Smoke-Free
Oral Products

Smoke-Free
Other
36

2

Smoke-Free Driving Net Revenue & Profit Growth2023 Net Revenues

2023 Gross Profit(Organic Variance vs. PY)(a)(Organic Variance vs. PY)(a)Adj.
Gross Margin

Combustibles

0.3%

5.5%

Smoke-Free
Products

12.8%

63.4%

19.2%

64.2%

(a) Organic variance, reflecting currency-neutral adjusted results, excluding acquisitions
Note: Chart not to scale. Adjusted gross margin is calculated by dividing adjusted gross profit by adjusted net revenues
Source: PMI Financials or es mates. CAGNY 2024, presented February 21, 2024

37

2

Smoke-Free Acceleration Driving Excellent OI Growth
H1’24 Organic Variance vs. PY
Total PMINet
Revenues
Gross
ProfitOperating
Income

10.2%

12.5%

17.0%

Smoke-Free(a)Net
Revenues
Gross
Profit

21.3%

29.0%

+390bpsSmoke-Free
Gross Margin

Combustibles

Net
Revenues

4.3%

Gross
4.0%
Profit(10)bps
Combustible
Gross Margin(a) Represents Smoke-Free Business. Note: Organic gross margin growth is calculated based on organic gross profit, divided by organic net revenues. Chart not to scale. Growth rates
presented on an organic basis reflect currency-neutral adjusted results, excluding acquisitions. Source: PMI Financials or estimates. Q2, 2024 Earnings, presented July 23, 2024

38

2Strong Leadership in Most Attractive SFP Categories
2022 PMI Category Volume Share(International, excluding China)
~ 75%
~66%

~ 50%

~ 36%
~ 23%
~ 1%
Smoke-Free
Products (a)Cigarettes

Nicotine
PouchesHeat-NotBurn

E-Vapor(a)(a) Excludes open tank e-vapor systems
Note: Reflects pro forma figures, including Swedish Match for full-year 2022
Source: PMI Financials or estimates. Investor Day 2023, presented September 28, 2023

39

2

Attractive SFP Volume Growth Supported by Investments
Intl.
Cigarettes

Intl. IQOS

Mid-Term(Incl. devices)(a) Opportunity
Average($/000, 2022)

Average

Net Revenue

~35

~85

COGS

~12

~30

Gross Profit

~23

~55

Commercial/
R&D Costs~3~25

Product Contribution

~20

~30

Current Ratio
vs Cig.

Nordics
NPs
Average

~2.5x

~100

~2.5x

~40

~2.5x

~60

<20

~7x

~30

40 +

~1.5x >2x

~30

~25

IQOS & nicotine pouches already compare favorably to highly-optimized
cigarette business, with scale opportunities over time(a) IQOS financials, including devices, allocated to HTU on per '000 basis
Note: 1 can of Nordics nicotine pouches (NPs) contains on average 21 pouches
Source: PMI Financials or estimates. Investor Day 2023, presented September 28, 2023

40

2

U.S.: Attractive & Substantial Growth Opportunity
Intl.
Cigarettes($/000, 2022)

Net Revenue

Intl. IQOS

U.S. ZYN

Average(Incl. devices)(a)Average

~35

~85

~190

Ratio

U.S. IQOS

Ratio

vs Intl. Cig.

(Incl. devices)(Illustrative(a)(b))

vs Intl. Cig.

~5.5x

~150

~4x

Assumes Premium U.S. CC NR

COGS

~12

~40

~30

~3x

~30

~2.5x

Assumes IQOS Intl. Avg

Gross Profit

~23

~55

~150

~6.5x

~120

~5x

Commercial/
R&D Costs

~3

~25

~35

~12x

~40-50~13-16x

Product Contribution~20

At scale (higher in launch phase)

~115

~30

~6x

~70-80~3-4x

Highly attractive economics vs. PMI international business
U.S. ZYN similar economics to U.S. Moist Snuff(a) IQOS financials, including devices, allocated to HTU on per '000 basis(b) Illustratively, assuming same estimated net revenue per thousand (net of MSA related payments) as U.S. cigarettes, same COGS as international IQOS, and estimated level of commercial costs once at moderate national scaleNote: 1 can of U.S. ZYN contains 15 pouches
Source: PMI Financials or estimates. Investor Day 2023, presented September 28, 2023

41

2Over 36m Users of PMI Smoke-Free Products
Total Smoke-Free Product Users(a)(in millions)90
markets

33.3

PMI SFPs
available

20.6

Estimated users who
have switched to IQOS
and stopped smoking(a)

21.7

23.7

25.1

27.5

0.5
4.2

27.5

28.9

36.5
0.8
5.2

Total Users(b)E-VaporOral SFP

30.8

IQOS

23.7

25.1

71%

71%

71%

72%

73%

72%

FY'21

H1'22

FY'22

H1'23

FY'23

H1'24

20.6

21.7

71%

H1'21

(a) See Glossary for definition. (b) Total Smoke-Free Product Users are net of poly users across categories
Source: PMI Financials or estimates and PMI Market Research. Q2, 2024 Earnings, presented July 23, 2024

42

2

IQOS: Evolving in Device Range, Personalization & Flexibility
Range

Personalization

Flexibility

Devices

Limited Editions & Accessories

Features

FROM:
1 model& 2 colors

FROM:
Color led
Device led

FROM:
Basic

TO:
3 models& 14 colors

TO:
Idea & Brand
engagement led

TO:
Advanced

6 minutes
14 puffs

FlexPuff (a)FlexBattery(a) Adapting to adult consumer puffing habit
Source: Investor Day 2023, presented September 28, 2023

43

2

IQOS ILUMA• IQOS ILUMA: Pleasure simplified• New internal heating technology⎼ Based on SmartcoreTM induction• Same great taste• Premium design andcustomization for enhanced
lifestyle appeal, advanced features• Addresses consumer feedback on
IQOS blade heating product• Robust and reliable, superior
satisfaction• Simple and Intuitive:⎼ No cleaning and simple use⎼ Self-activation & stick recognition• 3 device designs covering 3 pricepoints• Less explanation needed, positivefor:• New broad range of consumables⎼ Time and cost of acquisition⎼ After-care and retention• Supports easier switching, higher
conversion for legal-age smokers

44

2

Multi-Category Smoke-Free Expansion• Very good early performance of
VEEV ONE in Europe

VEEV ONE #1
in 5 European markets

in closed pods segment, within 12 months of launch• ZYN international expansion:
promising initial results• Expanding IQOS HTU portfolio with
LEVIA & DELIA; devices with ILUMA i• Moving forward with U.S. IQOS 3
pilots45

Source: PMI Financials or estimates. Q2, 2024 Earnings, presented July 23, 2024

2

Key Cities Lead the Way For National Shares Over Time
PMI Adjusted National Share(a) and Key City Offtake Share of Total Cigarette and HTU Market
Greece
10.5%

16.5%

15.8%

22.3%

29.7%
20.8%

UK
5.9%
0.6%

Q4, 2019

Q4, 2021

Italy

21.6%
6.1%

10.7%

12.7%

Q4, 2021

Germany

Q4, 2019

3.4%
Q4, 2021

Q4, 2021

3.7%

Q4, 2023
11.1%

N/A

Q4, 2019

Q4, 2023

1.8%
Q4, 2021

3.2%

Q4, 2023

Spain

5.5%

5.6%
0.8%
Q4, 2023

3.9%

6.8%

17.1%

8.6%
4.4%

2.4%

Sweden0.5%

Q4, 2019

1.6%

Q4, 2019

Q4, 2023
28.2%

1.6%

7.0%

1.5%

Q4, 2019

1.3%

2.9%

Q4, 2021

PMI Adjusted National Share

2.4%
Q4, 2023
Key City Offtake Share(a) Adjusted market share for HTUs is defined as the total in-market sales volume for PMI HTUs as a percentage of the total estimated sales volume for cigarettes, HTUs and excluding the impact of estimateddistributor and wholesaler inventory movement; Note: Chart not to scale. Key Cities selected are respectively: Athens, London, Rome, Stockholm, Munich and Madrid
Source: PMI Financials or estimates. CAGNY 2024, presented February 21, 2024

46

2

Clear Strategy For Low & Middle-Income Markets• IQOS comes first:⎼ Premium offer with ILUMA to build brandequityLMIC Cigarette Industry(b)(2023)⎼ Best product for switching smokers⎼ Substantial premium CC segment toswitch• Below premium offering to address fullvolume opportunity:

Total Industry

Premium Segment

23% ~400 billion~1,700 billion
stickssticks⎼ LIL(a) with intuitive innovation⎼ BONDS pilot learnings being taken torefine product offering(a) Commercialized under partnership with KT&G (b) Excluding China
Note: LMIC refers to Low and Middle-Income countries and defined using World Bank classification
Source: PMI Financials or estimates. CAGNY 2024, presented February 21, 2024

47

2

Significant Opportunity in World’s Largest SFP Market• Largest total nicotine market by value:2022 U.S. Volumes by Category(stick equivalent units)⎼ Highly profitable in absolute terms andrelative to international HTUs

• Around 47 million total adult nicotine
users, including ~30 million adultsmokers• Nicotine industry volume of nearly
300 billion units• No cigarette cannibalization impact for
PMI

Cigarettes
62%

Cigars &OTP
11%Nicotine
Pouches2%

Traditional
Oral
9%E-Vapor16%

294 bn units
Note: E-Vapor includes pods, open systems and disposables
Source: PMI Financials or estimates. Investor Day 2023, presented September 28, 2023

48

2

U.S. IQOS: Building Towards ILUMA Success• Investing to support ZYN’s growth andbuilding capabilities for IQOS

Ambition

10% share 5 years from ILUMA launch(a)• ILUMA at-scale launch remains corefocus:⎼ PMTA & MRTP application submitted in
October, 2023

• Flexibility to leverage global supply chain(a) Illustrative target share of U.S. Cigarette and HTU Industry Volume within five years of ILUMA launch
Source: PMI Financials or estimates

49

2

IQOS: 10% Share Reached Within 6 Years in Many Markets
Number of Years to Reach 10% SoM(a)
6
5
4
3

3

Japan

Czech Republic

2

Lithuania(a) Reflects year in which PMI HTU share reached 10% following initial IQOS launch in the market
Source: PMI Financials or estimates. Investor Day 2023, presented September 28, 2023

GreecePortugal

Italy

50

2

ZYN: Leading the Way With Strong Premium Brand• U.S. nicotine pouch category still in its infancy• ZYN now $2 billion retail value brand(a) in the U.S.
within five years of national launch• Continued focus on responsible marketing practices• Active innovation pipeline, subject to FDA market
authorization process• Investing in commercial and manufacturing capacity tosupport long-term growth• ZYN to drive overall double-digit net revenue andadjusted OI growth in U.S. for 2024-26, including
impact of IQOS investments(a) On an annualized basis, Q3’23
Source: PMI Financials or estimates. Investor Day 2023, presented September 28, 2023

51

2

ZYN Launches / Re-Launches in 2023
Select Markets
Pakistan

Select Duty Free

Hungary

Philippines

South Africa

Iceland

Switzerland

LatviaFinlandDF

United Kingdom
52

2

Outstanding Prospects to Remain Undisputed Global Leader
ActiveInnovation
Pipeline
Responsible
Marketing
Practices

Leverage SFP
Multi-Category
Portfolio

U.S. First-Mover
Advantage andStrength of
Brand

Commercial andOperational
Infrastructure
53

Source: Investor Day 2023, presented September 28, 2023

2

E-Vapor: Vaping Made Right
Product
Youth
Access Prevention

Design - for Adult Nicotine Users,
including flavor, device, package•

Content - Must reflect intended focus on Adult Nicotine Users andmust be accurate and non-misleading•

Access - Must be age verified•

Access - Only be accessible subject to age-control measures and placedin media where audience is deemed to be predominantly Adults

Design for Sustainability
Sustainability

Government

Marketing••

Recyclability•

Optimize material usage

Post-Consumer Waste Management•

Circular Program

Regulation

Compliance Enforcement

•
•
•

•
•
•
•
•

•

Product standards, incl. flavors
Product presentation & descriptors
Responsible commercialization, incl. strong Youth
Access Prevention safeguards at retail (offline & online)
Fiscal regulation

Source: Investor Day 2023, presented September 28, 2023

Product
Youth Access Prevention
Communication
Illicit Trade
Proportionate Penalties

54

2

Continuing to Develop E-Vapor Portfolio• Committed to responsible and profitabledevelopment• Landscape and user preferences continue to
evolve• Building a portfolio addressing category
dynamics• Category economics still inferior to HnB and oral
smokeless due to product proliferation, lower
consumer brand loyalty and conversion rates

Source: CAGNY 2023, presented February 22, 2023

55

2

A Focused Approach to Wellness & Healthcare Business• W&H business provides sizable long-term potential in pharmaceutical, medical andconsumer wellness segments• Excellent technology platforms for both oral and inhalation delivery with Vectura
Fertin Pharma, supplemented by PMI expertise• Reprioritization of strategy and resource allocation in recognition of:⎼ Significant opportunity for SFPs with IQOS and ZYN, particularly now in the U.S.
⎼ Impact of the external environment on certain areas of the acquired operations due to PMI’sownership• Preparing for W&H new product roll-outs beyond 2026, with corresponding scaledown of investments resulting in stable costs and only moderate revenue increases
in next 3 years

Source: Investor Day 2023, presented September 28, 2023

56

2Time to Market /Investment

Focus

Wellness & Healthcare: Product Focus Areas
Pharmaceutical (Rx)

Medical• Inhalable:⎼ Aspirin for myocardial
infarction⎼ Cannabinoids for chronic pain
⎼ DHE for acute migraine• Medical cannabis, where there is aclear need for:• Approved compounds, repurposed
for inhalation; development
process is faster and requires lessinvestment relative to NME
process⎼ Consistency of dose / dosage• Longest time to market, due topreclinical / clinical trials andregulatory approvals, with highest
upstream investments

Consumer• ‘Energy and focus’, primarily
through superior oral products⎼ Product quality• Leverage FMCG brand-building
expertise⎼ Scientific evaluation• Faster time-to-market• Similar to FMCG products, withlower upstream costs• More moderate investment
requirements• Higher in-market investment oncerolled-out geographically, which is
not foreseen during 2024-26
period• Commercialization plan to optimize
between own capabilities andpartnerships

Note: DHE stands for dihydroergotamine. NME stands for new molecular entity. Source: Investor Day 2023, presented September 28, 2023

Championing a Smoke-Free World

Section 3:
Combustibles Strategy and
Performance57

3

Combustible Leadership Supports SFP Growth• Leading portfolio well-positioned for evolving adult smoker base
• Infrastructure and expertise benefits smoke-free portfolio• Responsible category stewardship – market leader driving the obsolescence of combustible
tobacco• Continue to target stable combustible share over time and profit growth contribution(a) Excludes China and the U.S. Reflects in-market sales volume of PMI cigarettes as a percentage of cigarette industry sales volume and includes cigarillos in Japan
Source: PMI Financials or estimates. Based on CAGNY 2024, presented February 21, 2024

59

3

Combustibles: Strong Pricing & Stable Share Drives Profitability
Share of Cigarette Category(b)Combustible Pricing(% organic change vs. PY)(a)(Change vs. PY in pp)

2021
8.9

8.3

0.2

0.2

Flat

2022

2023

H1’24

(0.7)

5.0
2.7
2021

2022

2023

H1'24

(a) Pricing variance is based on adjusted net revenues(b) Excludes China and the U.S. Reflects in-market sales volume of PMI cigarettes as a percentage of cigarette industry sales volume and includes cigarillos in Japan
Source: PMI Financials or estimates. Q2, 2024 Earnings, presented July 23, 2024

60

3Moderate Industry Decline, More Pronounced in SFP Markets
Cigarette Industry Evolution(in ‘000 bn cigarettes)
2.7

Other
Markets

IQOS (a)Markets

2.6

2.5

Population
Change(b)

2.5

2.5

(2.2)%

1.2%

1.7(0.9)%

1.4%

0.8(4.9)%(0.1)%

1.8

0.9
2018

2019

2020

2021

2022

(a) IQOS markets include all markets that launched IQOS by 2022 and reached a share of market of >5% nationally(b) Total population growth used as a proxy for adult population growthNote: Excluding China and U.S. Reflects cigarettes industry in-market sales volume, including cigarillos in Japan
Source: PMI Financials or estimates. United Nations, World Population Prospects 2022. Investor Day 2023, presented September 28, 2023

CAGR
2018-2261

3

Unit Rates Attractive Across Price Points
Cigarette Net Revenue Unit Rates
Top 10 PMI Pricing Markets(index = Premium 2018)

160

102

100
52

Premium

Low & Super Low
2018

Premium

Low & Super Low
2022

Note: Unit rates are net revenues per ‘000 sticks, evolution indexed in local currency, aggregated for Top 10 PMI pricing contribution markets (2018-2022)
Source: PMI Financials or estimates. Investor Day 2023, presented September 28, 2023

62

3

PMI Cigarettes: Top-15 International Brands (2023)(%)

International Cigarette Share(a)
9.8

2.7%

3.5

#1

Winston

#3

2.1%

2.7

Camel Rothmans

#6

2.2
Kent

#8

1.5
Pall Mall

Lucky
StrikeMeviusLD

Dunhill#14

Esse

PMI Owns Five of the World’s Top-15 International Cigarette Brands(a) In-market sales volume of cigarette brand as a percentage of total estimated sales volume for cigarettes
Note: Excluding China and the U.S. Philip Morris includes Philip Morris/Dubliss. It includes cigarillos in Japan
Source: PMI Financials or estimates as of July 10, 2024

63

3

Growing Global Brands Performance
Share of Cigarettes Evolution by Brand, Top 20 Markets

12.8%

12.8%
3.4%

3.7%

3.5%
2.8%

H1'18

H1'23

H1'18

H1'23

H1'18

3.2%
2.3%

H1'23

H1'18

H1'23

2.6%

2.7%

H1'18

H1'23

Note: Excluding China and U.S. Reflects Top 20 CC Markets in-market sales volume of PMI cigarettes as a percentage of total estimated sales volumes for cigarettes, including cigarillos in Japan
Philip Morris includes Philip Morris/Dubliss
Top 20 Combustible Markets based on a combination of Net Revenue and Volume
Source: PMI Financials or estimates. Investor Day 2023, presented September 28, 2023

64

3

Cigarettes: Illicit Trade Overview (2023)
Change vs. 2022(a)Counterfeit(b)

—

+1pp

+1bn

11
(3)bn

7%

U.S.

17%

66

UnderDeclaration

China

498
billion units

421

29%
Contraband

(4)pp

+15bn

International

47%
Illicit Whites+3pp
International
Illicit Cigarette Consumption

representing an estimated 15.4% of all cigarettes consumed(a) Change vs 2022, (b) All companies, estimate for PMI worldwide and BAT, JT and IMB for selected markets where information on counterfeit of competitor brands is available
Estimates for 2023 include KPMG findings. For more information on our efforts to limit illicit trade, please see PMI's Quarterly Report on Form 10-Q for the second quarter ended June 30, 2024
Sources: KPMG, EPS, Yellow Bag Survey, Pack Swap Surveys, PMI internal estimates

Championing a Smoke-Free World

Section 4:
Tobacco Harm Reduction:
Regulatory & Science65

4

Nicotine Misinformation Slowing Tobacco Harm Reduction• Many misperceptions on smoke-free
products & nicotine• Nicotine is not the primary cause ofsmoking-related disease(a), combustion is• Science from existing laboratory andclinical data(b) is conclusive: heated
tobacco, e-vapor, & oral products ARE
NOT equally or more harmful thancigarettes“Nicotine, though not benign, is notdirectly responsible for the tobaccocaused cancer, lung disease, and heartdisease that kill hundreds of thousandsof Americans each year. The FDA’s
approach to reducing the devastating
toll of tobacco use must be rooted inthis foundational understanding: otherchemical compounds in tobacco, and in
the smoke created by combustion, areprimarily to blame for such healthharms.” (c) [emphasis added]
FDA – September 2017(a) Nicotine is addictive and not risk-free; (b) Available scientific data from third-party laboratory and clinical studies, published in scientific journals; (c) FDA - September 21, 2017, N
Engl J Med 2017; 377:1111-1114 DOI: 10.1056/NEJMp1707409
Source: CAGNY 2024, presented February 21, 2024

67

4

The Science is Clear: SFPs Are A Much Better Alternative
Tobacco Harm Reduction: Continuum of Risk

Lower Risk

Higher Risk

Combustible
Products

Inhalable
Smoke-Free
Products

Combustion

No Combustion

Oral SmokeFree Products

Cessation

Note: Charts are used for illustrative purposes; not to scale. Combustible Products include cigarettes, cigars and cigarillos. Inhalable Smoke-Free Products include Heat-not-Burn and e-vapor. Oral Smoke-Free
Products include nicotine pouches and snus. Nicotine Replacement Therapy products include patches and gums. Source: CAGNY 2024, presented February 21, 2024

68

4

Cigarette Combustion Causes Harm to Health1000

Temperatureof burning tip
during puffing

800

600
500
400

Pyrolysis

700

Smoldering(flamelesscombustion)

Tobacco ignites

900
800

PAH Yield (ng/g)

900Fluoranthene
PyreneBenzo[a]anthracene
Chrysene
Benzo[b]fluorantene
Benzo[a]pyrene
Indeno[1,2,3-cd]pyrene

700
600
500
400
300
200
100

300

Torrefaction
Evaporation
Drying0

RT-350350-<400

400-450

450-500

500-550550-600

Temperature (°C)

As the Temperature Increases Beyond the Ignition
Point of Tobacco the HPHC Emission Increases
Note: HPHC stands for Harmful and Potentially Harmful Constituent. PAH stands for polycyclic aromatic hydrocarbons
Source: Left chart: Cozzani, 2020 (DOI: 10.1016/j.tca.2019.178475); right chart: McGrath, 2007 (DOI: 10.1016/j.fct.2006.12.010). Investor Day 2023, presented September 28, 2023

69

4

The Difference Between Cigarette Smoke & IQOS (THS) Aerosol
Heated Tobacco Aerosol Chemistry & Physics
Water and glycerin form
50% of smoke mass

Water and glycerin form
90% of aerosol mass

Toxicants

Toxicant levels reducedby >90-95% on average(a)Does not generate
carbon-based solid
particles

Generates carbon-basedsolid particles

Free radicals are
not quantifiable

Free radicals
Cigarette Smoke

IQOS (THS) Aerosol

Smoke and Aerosol Were Collected on a Cambridge Filter Pad
in Accordance with the Health Canada Intense Puffing Regimen(a) 90-95% reduced levels of toxicants represents the average reductions in levels of a range of harmful chemicals (excluding nicotine) compared to the smoke of a reference cigaretteNote: THS here stands for Tobacco Heating System. The residue on the filter pad are from 5 cigarettes and 5 THS respectively.
Source: Ghosh, 2014 (DOI: 10.2478/cttr-2014-0008) and Shein M and Geschke G, hem. Res. Toxicol. 2019, 32, 6, 1289–1298, https://doi.org/10.1021/acs.chemrestox.9b00085. Investor Day 2023, presented September 28, 2023

70

4

IQOS: Nicotine Pharmacokinetic Profile
Levels of nicotine in the blood following useof different nicotine delivery products

Levels of nicotine in the blood following useof cigarette and IQOS

Plasma nicotine (ng/mL)

18

Plasma nicotine (ng/mL)

18

16

16

14

14

Patch
(21 mg)

12

Cigarette
IQOS

12

10

10

8

8

Gum
(4 mg)
Cigarette(1-2 mg)
Nasal spray(1 mg)

6
4
2
0
0

10

20

30

40

50

60

70

80

90

100

110

6
4
2
0

120

0

10

20

30

40

Time (Minutes)

50

60

70

80

90

100

110

120

Time (Minutes)

Note: The amount of nicotine in each product is shown in parentheses. The
pattern produced by the nicotine lozenge and nicotine inhaler resemble thatof nicotine gum. mg = milligram; mL = milliliter; ng = nanogram.
Source: Modified from Garrett et al. 2001

Note: These data alone do not represent a claim of reduced exposure or
reduced risk
Source: PMI Research & Development (PMI Investor Day, June 26, 2014)• The amount and rate of nicotine absorbed by the body is influenced by the route of absorption• No notable difference in the nicotine absorption between cigarette and IQOS
71

4Reduced Toxicant Formation in IQOS (THS) Aerosol
Heated Tobacco Aerosol Chemistry & Physics

Average Reduction in Formation of Harmful or Potentially Harmful Constituents of
IQOS (THS) Relative to Reference Cigarette, by Disease Category(a)Reference
Cigarette% of Reference
Cigarette

100%
80%
60%
40%

97%

93%

92%

92%

94%
IQOS (THS)20%
0%Number of Toxicants

Air

Carcinogens(IARC Group 1)

Carcinogens(FDA)

Cardiovascular
Toxicants (FDA)

Repiratory
Toxicants (FDA)

Reproductive& Developmental
Toxicants (FDA)

12

29

8

18

7

(a) Analysis of the 54 Harmful or Potentially Harmful Constituents as defined by FDA. Includes Health Canada, the WHO and the FDA-18 lists of HPHCs
Note: THS here stands for Tobacco Heating System. Health Canada’s Intense Puffing Regime. Comparison on a per-stick basis (excluding nicotine). Reference Cigarette = 3R4F: University of Kentucky Reference
Cigarette
Source: Investor Day 2023, presented September 28, 2023

72

4

Mouse Toxicology Study – Findings in Lung & Vascular System
After IQOS (THS) Exposure
ApoE-/- Mice Exposed for 8 Months, 3 h/day and 5 days/week to IQOS (THS) Aerosol
Pulmonary Emphysema
Cess.

Switch.

2
C57BL/6 ApoE-/-*: different from air(p<0.05)#: different from reference
cigarette (p<0.05)

Means ± SEM

IQOS
(THS)

Plaque Volume (mm3)Air

Reference
Cigarette

Atherosclerotic Plaque Volume

Mean Occlusion (%)

Means ± SEM#

Air

Reference IQOS
Cigarette

(THS)

Cess.

Swit.

Aortic Arch Occlusion
*

6

#

4

#

#

2
0

Reference Cigarette

#

0.5

8
No lung inflammation oremphysema#

10Lung inflammation andemphysema*

1.5

IQOS (THS)

Air

Reference
Cigarette

IQOS Cess.
(THS)

Swit.

73

Note: THS: Tobacco Heating System; Reference Cigarette = 3R4F: University of Kentucky Reference Cigarette. Source: Phillips, B et al. (2016) Toxicol Sci 149(2): 411-432. Source: Investor Day 2023, presented September 28, 2023

4

Comparison of Exposure to HPHCs in Cigarettes, Swedish Snus
and Nicotine Pouches
Cigarettes
Cigarettes

Snus
Snus

Nicotine Pouches
Nicotine
Pouches

Exposure to over 6000 chemicals, including highlevels of carcinogens and toxicants effecting thelung, heart and other organ systems (a)Exposure to a much lower number of chemicals
overall with significantly lower exposure tocarcinogens and toxicants effecting the lung,heart and other organ systems.

Exposure to harmful chemicals even lower
compared to Snus

Exposure to ~100 HPHCs

Exposure to 15(b) HPHCs out of 36 HPHCs
measured (c)Exposure to 4(b) HPHCs out of 36 HPHCs
measured (c)Lung exposure to carbon-based nanoparticles andfree radicals

No exposure to carbon-based nanoparticles andfree radicals

No exposure to carbon-based nanoparticles
and free radicals

Lung exposure to 600 mg/m3 total particulatematterNo direct lung exposure

No direct lung exposure

U.S. FDA authorized marketing withmodified risk claim for diseases.
(a) Rodgman A, Perfetti TA. The chemical components of tobacco andtobacco smoke. Boca Raton (FL): CRC Press, Taylor & Francis Group; 2013(b) Excluding nicotine“Using General Snus instead of cigarettes puts
you at a lower risk of mouth cancer, heartdisease, lung cancer, stroke, emphysema, andchronic bronchitis.” U.S. FDA Oct. 22,2019(c) Back et al. BMC Chemistry (2023) 17:9,
https://doi.org/10.1186/s13065-023-00918-1
Source: Investor Day 2023, presented September 28, 2023

74

4

Cigarette Industry Declines Faster When SFPs are Present
Cigarette Industry Volume % Change
Vs. Previous Year
2018

2019

2020

2021

2022

2023

1.3%

(0.9)%(2.6)%(2.8)%(3.3)%(3.0)%(2.4)% (2.7)%• SFPs are switching adult smokers
away from cigarettes• PMI cigarette volume in current
SFP markets vs. 2015 baseline:– Already >33% lower in 2023
– Expect >50% lower by 2030 oncurrent trajectory(4.5)%(6.5)%(6.3)%(8.1)%
International(a)IQOS Markets(b)(a) Excluding China and the U.S. Including cigarillos in Japan(b) Markets where IQOS was present as of Q4, 2017
Source: PMI Financials or estimates. CAGNY 2024, presented February 21, 2024

75

4

Oral Tobacco Products and Cigarette Sales in Sweden
700

Volumes Sold Per Year In Sweden

Swedish Match Estimates of Total Market Sales, (Million Packs/ Cans)

600
500

Snus / Nicotine
Pouches

400
300

Cigarettes

200

2016: First tobacco
free nicotine
pouches launched100
01973: First portion Swedish snus launched

Note: Temporal associations do not demonstrate cause and effect and are subject to inherent limitations. Specific factors associated with changing cigarette sales volumes over time have not been fully analyzed. 20 cigarettes per pack; 21 estimatedaverage pouches in can for snus and nicotine pouches. Source: [1] Swedish Match estimates; Scientific Literature [2] Ramström 2016 (DOI: 10.3390/ijerph13111110); [3] Clarke 2019 (DOI: 10.1186/s12954-019-0335-1); [4] Furberg 2005 (DOI:
10.1136/tc.2005.012476); [5] Ramström 2006 (DOI: 10.1136/tc.2005.014969); [6] Rodu 2002 (DOI: 10.1046/j.1365-2796.2002.01057.x). Jefferies Virtual Reduced Risk Seminar, presented May 7, 2024

76

4

Cigarettes Now Less Than Half of Nicotine in Tokyo Within 10y
Tokyo Monthly Offtake Category Share(a)100%Combustibles
Jan’24

50.4%
49.6%

HTUs
2015

2016

2017

2018

2019

2020

2021

2022

2023

(a) Based on 3 C-Store Chains offtake. Base includes cigarettes, cigarillos and HTUs
Source: PMI Financials or estimates. CAGNY 2024, presented February 21, 2024

77

4Real-World Data and Evidence on Harm Reduction in Sweden

Usage Rates of Snus and Cigarettes in Swedish Men Correlate With a Reduction in Tobacco Related Diseases
40

Ischemic Heart Disease
Incidence / 100,000

Prevalence of Daily Cigarette Smokers & Snus Users
Swedish Males (18-64 yrs)

35
30
25

(Men)

1,000
500
0

15
10
5

Smoking

0
1980

1985

1990

1995

2000

2005

2010

2015

2020

Incidence / 100,000

Snus

20

1975

1,500

30

Lung Cancer
(Men)

25
20
15
10
5
0

2025

Note: Temporal associations do not demonstrate cause and effect and are subject to inherent limitations. Specific factors associated with changing daily smoker prevalence, ischemic heart disease and lung cancer over time have not been fully
analyzed.
Source: Incidence Data - Swedish National Board Of Health And Welfare, Statistical Database (Accessed 5/2023); Prevalence Data: 1980-1998 - Henningfield J, Fagerstrom K Tobacco Control 2001;10:253-257; 2004-2022 – National Public Health
Survey/Living Habits/ Tobacco And Nicotine (Accessed 6/2023). Investor Day 2023, presented September 28, 2023

78

4

Sweden: Lowest Male Smoking Prevalence and TobaccoAttributable Mortality in EU
Male Deaths per 100,000 Attributable to Tobacco

Male Smoking Prevalence(2019)(2020)

49

Bulgaria
GreeceLithuania
Croatia
Romania
Czechia
Hungary
Slovakia
PolandAustria
Italy
FranceGermany
Portugal
Spain
Belgium
IrelandDenmark
FinlandNetherlands
United Kingdom
SwedenBulgaria
Hungary
Romania
Lithuania
PolandSlovakia
GreeceCzechia
Denmark
Belgium
Spain
Netherlands
Germany
Ireland
Austria
Portugal
Italy
FranceFinlandSweden

34

22

6

267

177

108

72

Note: The charts in this slide do not demonstrate cause and effect and are subject to inherent limitations
Source: Dataset Special Eurobarometer 506: Attitudes of Europeans towards tobacco and electronic cigarettes, February 2021 Lars M. Ramström: National availability of snus is clearly associated with lower rates of mortality attributable totobacco—while country-level implementation of WHO tobacco control measures is not, Global Forum on Nicotine 2022, https://gfn.events/new-research/lars-m-ramstrom-2022/. CAGNY 2024, presented February 21, 2024

79

4

Future Evidence Generation For Relative Risk Reduction

Studies to Show Substantial Evidence on Major Smoking Related Diseases – Our Roadmap
DISEASE
AREA

REAL-WORLD DATASTUDIESLONG-TERMSTUDIESCore Strategy to Show
Substantial Evidence in
Diseases

COPD FEV1Slope Decline
Study

Retrospective
RWE COPD
Hospitalization
Study

Respiratory

CLINICALSTUDIES• Focus on Epidemiology / RealWorld Evidence

COPD Feel andFunction Study• Healthcare Utilization, e.g.,
hospitalization• Demonstrate Direct ClinicalBenefit:

Prospective CV
Outcome Trial

Retrospective
RWE CVOT

Cardiovascular⎼ Feel / Symptoms⎼ Function / Activity
OthersOngoing

All-causemortality RWE
PlannedPlan-B

Nicotine
Pouch RWE
COPD = Chronic Obstructive Pulmonary Disease

Source: Investor Day 2023, presented September 28, 2023

Product
Registries
CV = Cardiovascular⎼ Survival / Mortality
CVOT = Cardiovascular Outcome Trial

RWE = Real-World Evidence80

4Integrity of Our Scientific Assessment• Adhere to internationally recognized standards including Good Laboratory Practices andGood Clinical Practices• Follow international test guidelines (e.g., OECD TG) and make nonguideline methods
publicly available

530
Publications &Book Chapters• Share the raw data from our published nonclinical studies with the scientific community• The methods and results from the IQOS systems toxicology studies, submitted to the
FDA as part of our MRTP applications, were subjected to scientific scrutiny through the
sbv IMPROVER methodology(a)• Welcome independent studies of our SFPs. Encourage others to undertake serious nonclinical and clinical studies with IQOS
• Believe our consumers deserve our unwavering commitment to help them fully
understand the benefits of switching to SFPs

We believe our scientific research capabilities areon par with the best in the life science industries

287

29

Toxicological
Assessments

ClinicalAssessments

69
Perception &Behavior
Studies(a) sbv IMPROVER stands for Systems Biology Verification combined with Industrial Methodology for Process Verification in Research
Note: SFPs stands for Smoke-Free Products. All figures 2008 – 2023. Source: PMI Integrated Report 2023 (Status as of December 2023)

81

4

SFPs: Independent Verification on PMI Science(Select Governmental Reports)
Superior Health Council of Belgium (SHC) (Belgium, 2022): " e-cigarettes are substantially less harmful than smoking cigarettes
and therefore are a better alternative for smokers […] the vast majority of the risks of tobacco smoking are not caused by nicotine, butby the harmful substances that are released by the combustion of tobacco"
Superior Health Council of Belgium (SHC) (Belgium, 2020): "heat-not-burn products, while not safe, have a more favorable toxicity
profile than cigarettes"
China National Tobacco Quality Supervision and Test Centre (China, 2019): "THS 2.2 delivered fewer harmful constituents than theconventional cigarette 3R4F."
Federal Institute for Risk Assessment (BfR) (Germany, 2018): "The herein confirmed reductions of relevant toxicants by about 8099% are substantial."
Food and Drug Administration (FDA) (U.S., 2018): "The independent testing performed by STL [FDA’s Southeast Tobacco Laboratory]
confirmed the lower levels of selected [harmful and potentially harmful compounds] HPHCs in the aerosol from the HeatSticks comparedto mainstream cigarette smoke."
Public Health England (UK, 2018): "Compared with cigarette smoke, heated tobacco products are likely to expose users and bystanders
to lower levels of particulate matter and harmful and potentially harmful compounds. The extent of the reduction found varies between
studies."National Institute for Public Health and the Environment (RIVM) (the Netherlands, 2018): "The use of heatsticks with the IQOS isharmful to health, but probably less harmful than smoking tobacco cigarettes.“
UK Committee of Toxicology (UK, 2017) "It is likely that there is a reduction in risk, though not to zero, to health for smokers who
switch completely to heat-not-burn tobacco products."
Note: To date, several governmental agencies have published their scientific findings that analyze the harm-reduction potential of certain SFPs versus continuing smoking, including theabove select examples. Refer to Form 10-K for the year ended December 31, 2023, for additional information. SFPs stands for Smoke-Free Products

82

4

Policy Principles to Better Enable Switching to SFPs
Government regulations should aim to support smoke-free products through greater:

Awareness

Acceptability

Availability

Affordability

Ability to communicate
information about SFPs
to adult smokers andnicotine users

Ensure SFPs are
acceptable substitutes
for adult consumers,
while limiting appeal toyouth

Market access andconvenience to purchase
SFPs

Tax differentiation thatincentivizes adultsmoker switching andindustry transformation
83

Source: Investor Day 2023, presented September 28, 2023

4

Restrictive Regulations Prevent Adult Smoker Access to Better
Alternatives in Many Markets
Top Industry Volume Markets
2022 International Market (a)Cigarette + HTU Industry Volume

HTPs (b)Not Allowed
18%(0.5tn units)

2022
Turkey

117bn

India

101bn

Vietnam

86bn

Brazil64bn

Argentina

30bn

80%
of Total‘Non-Accessible’
Market Volume

Top PMI Net Revenue / Unit Markets
vs. PMI International Cigarette Average2022

2.8tn units

Hong Kong

3.1x

Australia

2.7xSingapore

2.6x(a) International market excluding China and including cigarillos in Japan(b) Reflects markets where heated tobacco products are banned or otherwise subject to significant market access barriers
Source: PMI Financials or estimates. Investor Day 2023, presented September 28, 2023

84

4

Restrictive Regulations Limit SFP Growth
Median PMI HTU Market Share(a)~15%‘Best-in-Class’Markets(b)

~ 7%

~ 2%

'THR Supportive'
Markets'Non-THR Supportive'
Markets(a) Reflects median quarterly HTU market share six years after the launch of IQOS(b) ‘Best-in-Class’ Markets reflect the median share of the top-five ‘THR Supportive’ Markets
Note: Reflects markets (i) where IQOS has been present for at least six years and (ii) qualify as PMI top-40 income markets for 2022. ‘THR Supportive’ markets reflect markets that haveregulations that are generally more permissive with respect to communication and awareness building for heated tobacco products compared to cigarettes
Source: PMI Financials or estimates. Investor Day 2023, presented September 28, 2023

85

4Countries Moving Towards Sustainable Regulatory Policies for
SFPs
Key Developments(2021 – September, 2023)

+8

+16

+16

Markets

Markets

Markets

Are recognizing THR as a
viable policy (alongside
prevention & cessation)
to address smoking

Have lifted a regulatory
ban for at least one SFP
or are proceeding with adedicated regulatory
framework for SFPs

Established (voluntaryor mandatory) productstandards on quality,
safety and performancefor at least one SFP(reaching 13 markets in total)(reaching 60+ markets in total)(reaching 30 markets in total)

Source: PMI Financials and estimates. Investor Day 2023, presented September 28, 2023

86

4Countries Moving Towards Sustainable Fiscal Policies for SFPs
Key Developments(2021 – September, 2023)

+16

+21

Markets

Markets

Markets

Are recognizing or restating support for a
THR approach for SFP
taxation

Are creating dedicatedexcise tax categories for
HTP

Have instituted multiyear tax plans covering
HTPs(reaching 52 markets in total)(reaching 25 markets in total)+8(reaching 10 markets in total)

Source: PMI Financials and estimates. Investor Day 2023, presented September 28, 2023

87

4

Global Excise Tax Environment• In general, governments recognize that revenue predictability and collection
efficiency can be enhanced by regular and reasonable excise tax increases, highproportion of specific elements in excise tax structures, multi-year tax calendars andincome or inflation indexation:⎼ Over the last 10 years, the large majority of the key markets where we operate have shifted
their tax structure to include a higher specific tax element while lowering ad valorem rates• EU excise tax:
⎼ Reasonable current EU harmonized framework covering smoking tobacco products,
providing governments with structural flexibility between specific, ad valorem and minimum
excise tax tools• Excise taxes on smoke-free products significantly different from cigarettes in many
geographies, consistent with tobacco harm reduction potential88

4

EU Regulatory and Fiscal Developments (1/2)• Increasing number of countries incorporating Tobacco Harm Reduction into fiscal and regulatory processes• EU Tobacco Excise Directive (TED) Review:⎼ The proposal for the revision of TED, after several delays, could be adopted by the new College ofCommissioners which will be established following the June 2024 European Elections. Timelines for the revision
have not yet been announced⎼ Depending on the adoption date by the upcoming College, the proposal may still be discussed by the EU Council
in the course of 2024-2025. EU Council conclusions indicate SFPs likely to be included in the revised TED⎼ Any final amendments to TED require unanimous agreement by all 27 EU Member States, followed bytransposition of TED into national legislation⎼ A potential enforcement date for any changes to TED, after the transposition in Member States' national
legislation, could be beginning of 2027

Note: Indicative timelines for TED and TPD reviews according to the latest public information

89

4

EU Regulatory and Fiscal Developments (2/2)• EU Tobacco Products Directive (TPD) Review:⎼ The proposal for a revision of TPD is expected after appointment of the new EU Commission following the
EU Parliament elections in June 2024. Open Public Consultation on an evaluation of the existing TPD and
Tobacco Advertising Directive closed on May 16, 2023.
⎼ Ordinary legislative procedure: EU Parliament and Council co-deciding; Qualified majority⎼ Once adopted, directive to be transposed into national legislations of all 27 Member States; implementation
usually requires 12 months minimum• The TPD empowered the European Commission to withdraw the exemption from the characterizing flavor ban
applicable to all tobacco products other than cigarettes and roll-your-own tobacco:⎼ The Commission adopted a Delegated Directive, introducing a definition of HTP, and requiring the Member
States to ban HTP with characterizing flavor, based on a “substantial change of circumstances”⎼ A majority of Member States have already adopted or published laws to transpose the Delegated Directive.
In the markets that enforce the provisions of the Delegated Directive, the ban is effective since October 23,
2023 and the remaining markets are expected to adopt in 2024

Note: Indicative timelines for TED and TPD reviews according to the latest public information90

4

Cost of Regulatory Inaction
Encouraging progress being made in many countries – however:• A failure to acknowledge the role that harm reduction can play in bringing about the end ofcigarettes seriously hinders the ability of adult-smokers to switch to better alternatives• The science is clear – it is no longer a case of IF smoke-free alternatives are better than cigarettesmoking, but BY HOW MUCH they are better• Many policymakers perceive it as safer to abstain from the debate rather than be seen as “siding”
with the industry by adopting risk reduction policies• Not making a decision on smoke-free products today is a decision in and of itself — and it’s adecision with consequences• Governments and public health authorities must act — quickly and decisively — rather thanremaining tied to outdated approaches that have failed to solve the problem of smoking

Embracing harm reduction will accelerate the end of smoking
Source: Investor Day 2023, presented September 28, 2023

91

4

Responsible Marketing Practices• SFPs marketed in a responsible manner to legal age
smokers and nicotine users• Those under the legal age of purchase should nothave access to, or use, any nicotine product• Adult-oriented flavors can play an important role inswitching legal age smokers to SFPs, particularly
where corresponding flavors are present for
combustible products• National regulation and enforcement critical tominimizing underage usage and the availability ofillicit products• After ~10 years in-market, rates of underage use of
IQOS and ZYN remain very low

Source: CAGNY 2024, presented February 21, 2024

92

4

U.S. Responsible Marketing, Compliance & Innovation
Responsible
Retail Practices

Enforcement

Responsible
Social Media

Responsible
Marketing

RetailTechnology
Advancement

Monitoring
Underage Use

Innovation for
Age Restrictionwww.21PLUSresponsibly.com

Note: PMI closely monitors underage use reported through the U.S. CDC’s National Youth Tobacco Survey, and the reported rates continue to be very low
Source: CAGNY 2024, presented February 21, 2024

Championing a Smoke-Free World

Section 5:
Sustainability at PMI

93

5

Sustainability: Transparent Performance Reporting

Sustainability resources
PMI was included for the first time in the Dow Jones Sustainability World Index, and for the fourthconsecutive year in the Dow Jones Sustainability North America Composite Index (Indices effective
as of December 18, 2023). PMI achieved industry leadership, improving to a rating of “C+” in ISS ESG
Corporate Rating and gaining “Prime” status” for the first time (score as of November 21, 2023)
Source: PMI Integrated Report 2023

95

Source: Q1, 2024 Earnings, presented April 23, 2024

5

Sustainability Strategy & 2023 Performance Highlights

Sustainability Strategy& 2023 Performance Highlights
based on PMI’s Integrated Report 2023

Sustainability Strategy & 2023 Performance Highlights©2024 Philip Morris International, Inc. All rights reserved.

Sustainability Forward-Looking Aspirations96

5

Our Sustainability Strategy• Impact-driven approach to sustainability• Separate identification of environmental andsocial impacts• Distinct forms of social and environment
impacts:− Product impact: those impacts generated by our
products (what we produce)− Operational impact: those impacts generated by ourbusiness operations (how we produce)• 8 impact-driven strategies: 4 on productimpacts + 4 on operational impacts• 9 governance-related topics define our ability
to successfully address environmental andsocial issues

Source: Q2, 2023 Earnings, presented July 20, 2023

97

5

Our Approach to Sustainability

Source: ESG Highlights, May 2023. CECP CEO Investor Forum, presented November 14, 2023

98

5

Our Statement of Purpose
Transforming for good

The Company
is actively
accelerating thedecline of cigarettesmoking beyond
what traditional
tobacco control
measures canachieve alone.

PMI remains
committed toaccelerating theend of smoking
and laying thefoundations of astrong businessin areas of wellness
and healthcare as we
strive to develop
commerciallysuccessful productsthat have a net
positive impact
on society.

This means not
only transforming
the Company
to deliver on its
purpose but
also inspiring theindustry to follow
its lead.

PMI’s keystakeholder
constituencies,
which arefundamental toboth the achievingof its purpose andto the pace of its
progress, will beaffected indifferent ways by
PMI’stransformation.

PMI believes
that with theright regulatory
encouragement
and support
from civil society,cigarette sales
can end within
10 to 15 years inmany countries.

Note: Issued by PMI’s Board, PMI’s Statement of Purpose was published in 2022 Proxy Statement as an update to the letter to shareholders published in 2017 Proxy Statement andthe Statement of Purpose published in 2020 Proxy Statement
Source: ESG Highlights, May 2023. CECP CEO Investor Forum, presented November 14, 2023

99

Sustainability
Materiality
Assessment: the Right
Focus

Source: ESG Highlights, May 2023. CECP CEO Investor Forum,presented November 14, 2023

100

5

5

Sustainability: Leading & Transforming Across Key Areas

Markets where
SFPs are available

H1’24

Aspiration
2025

90

100

+6

#1

vs. Dec’23

LMIC proportion of markets
where SFPs are available

47%
Flat

>50%

vs. Dec’23

Total SFP Users

36.5m
+3.2m

vs. Dec’23

Note: Low and Middle-Income markets defined using World Bank classification as of July 2023. Source: PMI Financials or estimates. Q2, 2024 Earnings, presented July 23, 2024

101

5

Sustainability: Business Transformation Metrics
2015

2021

2022

2023

Aspirations

Number of markets where smoke-free products are available
for sale*(a)

7

71

73

84

100 by 2025

Number of markets where adjusted net revenues from smokefree products exceed 50% of adjusted total net revenues*

-

10

17

25

~60 by 2030

Number of markets where adjusted net revenues from smokefree products exceed 75% of adjusted total net revenues*

-

-

-

3

~40 by 2030

17%

42%

42%

47%

>50% by 2025

Commercial expenditure (Marketing)(smoke-free/total)*

8%

73%

74%

74%

Change in combustible tobacco product shipment volume(billion units) vs. 2015 baseline*(a)n/a(26.4)%(26.8)%(27.9)%

R&D expenditure ratio*(a)(smoke-free/total)

70%

99%

99%

99%

Supply chain direct spend(a)(smoke-free/total)

n/a

35%

43%

41%

Proportion of markets where smoke-free products areavailable for sale that are low- and middle-income markets*(a)Number of factories producing smoke-free products out of
total number of factories*(a)3 out of 48

9 out of 39 14 out of 49 16 out of 50(a) See Appendix. Note: Select Business Transformation Metrics displayed. The 2023 metrics marked with an asterisk (*) are subject to PwC’s Limited Assurance Report, available on PMI Integrated Report 2023,
pp. 203-205. R&D expenditure and Net Revenues shown on an adjusted basis; Source: PMI Financials or estimates. Q1, 2024 Earnings, presented April 23, 2024

102

5

Sustainability at the Core of Our Transformation• Driving shareholder returns isdependent on delivering ontransformation• Product transformation at thecore of sustainable growth andbecoming a more sustainable
company

Performance Share Unit Metrics

Sustainability
Index 30%
10%

EPS 30%

TSR 40%20%• Increasingly direct link to our
executive compensation

103

Source: PMI Proxy Statement 2024

Championing a Smoke-Free World

Section 6:
Capital Structure andShareholder Returns

6

Solid Capital Structure
Net Debt to Adjusted EBITDA Ratios(a)2.9
2.0 1.9 1.93.2 3.0• Long-term credit ratings and outlook:
A2 (Stable) / A- (Stable) / A (Negative)(b)• Short-term credit ratings: P-1 / A-2 / F1(b):⎼ Access to tier 1 commercial paper market

1.6• Robust liquidity profile backed by $6.2 billion
stand-by revolving credit facilities• Recent leverage increase driven primarily by
Swedish Match acquisition and payments for IQOS
commercialization rights in the U.S.

2018 2019 2020 2021 2022 2023 H1'24• Continue to target ~2.0x net debt to adjusted
EBITDA by end of 2026 as part of the deleveraging
strategy(a) As of June 30, 2024, on a 12-month rolling basis(b) As of June 30, 2024, reflects ratings for Moody’s, Standard & Poor’s and Fitch, respectively
Source: PMI Financials or estimates

105

6Highly Cash Generative With Focus on Rapid Deleveraging
Capital Allocation Priorities (Presented at Investor Day 2023)
OperatingCash Flow• Expect robust 2024-26 Operating Cash Flow of $36-39bn, at prevailingexchange rates(a)Organic
Growth• Reinvest in innovation and growth of smoke-free portfolio:

Dividends• Steadfast commitment to progressive dividend policy⎼ Expect 2024-26 capital expenditures of $3.5-3.7 billion with ~75% in SFP

Deleveraging• Target ~2.0x net debt to adjusted EBITDA by end of 2026 to enhance agility

Share
Buy-Backs• Could be considered once confirmed fully on-track for 2026 leverage target,
subject to Board approval(a) At September 28, 2023
Source: PMI Financials or estimates. Investor Day 2023, presented September 28, 2023

106

6

Well-Laddered Bond Portfolio(a)Bond Maturity Profile as of June 30, 2024

SWMA($ in billions)
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0

EUR
USD

2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044(a) SWMA bonds represent notes denominated in USD, EUR and SEK issued by Swedish Match AB
Source: PMI Financials or estimates

107

6Strong Financial Performance & Rewards to Shareholders
PMI Dividend• Unwavering commitment toprogressive dividend policy

CAGR: 7.2%

$5.20

• Sixteen years of dividend growth• Total increase of ~183% since 2008
• Target dividend pay-out ratio of
75% over time

$1.84

2008

2023

Note: Dividends for 2008 and 2023 are annualized rates. The 2008 annualized rate is based on a quarterly dividend of $0.46 per common share, declared June 18, 2008.
The 2023 annualized rate is based on a quarterly dividend of $1.30 per common share, declared September 13, 2023
Source: PMI Financials or estimates. Investor Day 2023, presented September 28, 2023

108

Championing a Smoke-Free World

Section 7:
2024-2026 Targets and 2030 Vision

7

Strong Overall Financial Model for Sustainable Growth

VolumeGrowthTarget 6 consecutive
years of volume growththrough 2026+

Positive
Product
Mix
Higher smoke-freevolumes at higher net
revenue per unit+

Pricing

Strong combustible
pricing power withpotential for smokefree&

Invest for
Growth /Cost
Efficiencies=

Strong Top& Bottom-Line
Performance

Disciplined investment
in high return categories
while generating cost
efficiencies

Delivering sustainable growth while investing and rewarding shareholders

Source: PMI Financials or estimates. CAGNY 2024, presented February 21, 2024

110

7

Ambitious 2024-2026 Targets (Presented at Investor Day 2023)

Positive

6-8%

Total Shipment
Volume CAGR(a)Net Revenue
Organic CAGR

8-10%

9-11%

Adjusted OI
Organic CAGR

Adjusted Diluted EPS
Currency-Neutral CAGR(b)(a) Reflects cigarettes, HTUs and oral smoke-free products (excluding U.S. Chew)(b) At 2023 corporate income tax rates
Note: Growth rates presented on an organic basis reflect currency-neutral adjusted results, excluding acquisitions.
Source: PMI Financials or estimates. Investor Day 2023, presented September 28, 2023

111

7

Targeting Strong Smoke-Free Product Volume Progression
Top-line
Driver #1:

PMI HTU
Shipment Volumes

PMI Nicotine Pouch
Shipment Volumes(a)(in billion units)(in million cans)

VolumeGrowth800-1,000

180-200
Implies>200bnSmoke-Free Unit
Volumes in 2026(b)

125

421

76
127

36
−
2014

2017

2020

2023

2026
Target (c)

−

4

2014

2017

2020

2023

(a) Pro forma, includes Swedish Match and PMI; (b) Includes HTUs, nicotine pouches, snus and moist snuff. One pouch measured as one unit; (c) Presented at Investor Day 2023 on September 28, 2023
Source: PMI Financials or estimates

2026
Target(c)11272030 Ambition: Substantially Smoke-Free

60~~
Markets Majority

2/3>Smoke-Free

Smoke-Free

Net Revenues

50-75% net revenues~20 markets>75% net revenues~40 markets

Note: Smoke-free markets are markets where PMI smoke-free products are available in key cities or nationwide
Source: PMI Financials or estimates. CAGNY 2024, presented February 21, 2024

113

Championing a Smoke-Free World

Section 8:
Appendix and Reconciliation of
non-GAAP Measures

8

PMI Tobacco Leaf Purchases by Geography (2023)>10% of total kg
5-10% of total kg< 5% of total kg
Note: Including Swedish Match
Source: PMI Operations

115

8

PMI Manufacturing Footprint (December 31, 2023)

50
30
38

PMI
Manufacturing
Facilities(a)Third-Party
Manufacturers
Third-Party
Operators(in Indonesia)(a) Includes facilities in Greece, Indonesia, Italy, Korea, Poland, Romania, Russia, Switzerland and US that are fully or partially dedicated to the production of Heated Tobacco Units (HTUs) 116
Source: PMI Operations and Form 10-K for the year ended December 31, 2023

8

Cigarette Excise Tax Structures: Select Markets(July 1, 2024)
Australia

Argentina%
Nominal

RSP(f)

Social Assistance Fund (SAF)(a)

7.00

7.00

Special Tobacco Fund (STF)(b)

7.35

7.19

Excise Tax(c)

70.00

55.89

VAT(d)

21.00

5.03

Turnover Tax(e)

3.73

0.70

Tax Burden

75.80(a) 7% x RSP(b) [7.35% x (RSP – SAF – VAT)] + ARS 17.3293 (as of January 2024)(c) 70% x [RSP – SAF – VAT – STF). Minimum excise tax: ARS 1201.95(Jun 2024 – Aug 2024)(d) (NEFP + Wholesaler & Retailer margin) x 21%(e) NEFP x 3.73%(f) Based on Philip Morris soft pack (ARS 2400.00)
Note: NEFP is net ex-factory priceFranceTobacco Excise Tax (AUD/Kg)

1,893.57

Ad Valorem Excise Tax

55.0%

Tobacco Excise Tax (AUD/000) (a)1,278.16

Specific Excise Tax (EUR/000)

71.30

10.0%

Minimum Excise Tax (EUR/000)

371.40VAT (Nominal)

20.0%

VAT (Nominal)(a) If not exceeding 0.8g per cigarette

Egypt
Price Tier
(RSP perpack in EGP)
Ad Valorem
Excise Tax(% of RSP)
Specific
Excise Tax(EGP/000)
Health Tax(EGP/000)

1(0 – 31)

Germany2(+31-45)

50%

50%

3
(45+)
50%

225.0

350.0

375.0

55.0

55.0

55.0

Ad Valorem Excise Tax

19.84%

Specific Excise Tax (EUR/000)

111.50

Minimum Total Tax (EUR/000)(a)228.88

VAT (Nominal)

19.0%(a) Minimum Total Tax (MTT) also includes the VAT

Note: 20 cigarettes per pack117

8

Cigarette Excise Tax Structures: Select Markets (cont.)(July 1, 2024)
Japan

MexicoNational – Tobacco Tax (JPY/pack)136.04

National – Special Tobacco Tax (JPY/pack)

16.40

Local Excise Tax (JPY/pack)152.44

Total (JPY/pack)304.88

VAT (Nominal)

10.0%South Korea
Tobacco Consumption Tax (KRW/pack)Specific Excise Tax (MXN/000)

616.6

VAT (Nominal)
16.0%(a) Ad valorem excise tax is 160% of manufacturer /wholesale price to retail excluding taxes (VAT and Excise)

Education Tax (KRW/pack)443

Green Fund Tax (KRW/pack)29

Individual Consumption Tax (KRW/pack)594
5

Ad Valorem Excise Tax

Specific Excise Tax (PHP/pack)(a)49.5%

Specific Excise Tax (EUR/000)

29.30

Minimum Total Tax (EUR/000)(a)VAT (Nominal)

204.2322.0%(a) Minimum Total Tax also includes the VAT

Philippines

Spain
63.0

1,007
841

Ad Valorem Excise Tax

51.0%

Specific Excise Tax (EUR/000)

24.70

Minimum Excise Tax (EUR/000)

131.50VAT (Nominal)

21.0%

TurkeyPolandAd Valorem Excise Tax

32.05%

Ad Valorem Excise Tax (% of RSP)

Specific Excise Tax (PLN/000)

276.00Specific Excise Tax (TRY/000)

240.29564.25

Minimum Excise Tax (TRY/000)

1424.923.0%

VAT (Nominal)

20.0%

Total (KRW/pack)

2,919

Minimum Excise Tax (PLN/000)

VAT (Nominal)

10.0%

VAT (Nominal)

Note: 20 cigarettes per packItaly
160.0%(a) January 1, 2024 onwards (+5% / year)

Public Health Tax (KRW/pack)

Farmer’s Subsidy Tax (KRW/pack)

Ad Valorem Excise Tax(a)

57.0%

118

8

Cigarette Excise Tax Structure: Indonesia(July 1, 2024)
CC – Cigarette TypeMachine-Made
Kretek(SKM)

Whites(SPM)

Hand-Rolled Kretek(SKT) / Hand-Rolled
White (SPT)

Minimum HJE (a)(IDR/stick)Total Excise + Regional Tax(IDR/stick)

Volume Tier

Price Tier

Current

Previous

Volume Tier 1(> 3 billion units)

1

2,260

Volume Tier 2(≤ 3 billion units)

1

Volume Tier 1(> 3 billion units)
Volume Tier 2(≤ 3 billion units)
Volume Tier 1(> 2 billion units)
Volume Tier 2(> 500 million units–2 billion
units)
Volume Tier 3(≤ 500 million units)

Current

Previous

2,055

1,354.1

1,211.1

1,380

1,255

820.6

735.9

1

2,380

2,165

1,469.6

1,312.3

1

1,465

1,295

873.4

781.0

1
2

1,981
1,375

1,800
1,250

531.3
415.8

507.1
397.1

1

865

720

245.3

235.4

1

725

605

134.2

129.8

(b)

(a) HJE stands for banderole price(b) Previous rates effective from January 1 to December 31, 2023

(b)

119

8

Excise Tax Structure: Japan(July 1, 2024)

HTP Excise Tax Structure
Pipe Tobacco
Category

Heated Tobacco
Category

RSP (JPY/pack)(a)

580

580

VAT (Nominal)

10%

10%

RSP Net of VAT (JPY/pack)

527

527

Effective Specific Rate (JPY/kg)

15,244

19,055(b)Full product weight(13.4 g/pack)(c)Heated tobacco weight(5.4 g/pack)(d)Specific Yield (JPY/000)

10,2135,145

Effective Ad Valorem Rate

n/a

30%

Tax Basen/a

RSP net of VAT

Ad Valorem Yield (JPY/000)

n/a

7,909

10,213

13,054

0%100%

Cigarettes• Excise tax increases of JPY 20/pack in October 2018,2020 and 2021:⎼ No increase in October 2019, due to nominal VAT
increase from 8% to 10%

Heated Tobacco Products (HTPs)• "Heated tobacco" category:⎼ Dedicated excise tax category for heated tobacco
products (previously: pipe tobacco category)⎼ Taxable base for the specific excise tax is weight ofheated tobacco⎼ For products using liquid to create an aerosol, theliquid portion is considered as tobacco for tax
purposes• Heated tobacco excise tax is being phased in over a
five-year period (2018-2022), with the fifth year
reflecting 100% of the new system (heated tobacco
category). See next slide for details

Note: 20 cigarettes/heated tobacco units per pack

Tax Base

Total Excise Tax Yield (JPY/000)

Heated Tobacco Category: Indicative Excise Tax
Payable as of October 1, 2022 (JPY/000)

13,054(a) Illustrative RSP. (b) Reflects effective specific rate for the fifth year of five-year-phase-in period. (c) Reflects indicative"total weight" for TEREA Menthol HeatSticks. (d) Reflects indicative "heated tobacco weight" for TEREA Menthol HeatSticks
120

8Multi-Year Tobacco Tax Plan: Japan(July 1, 2024)
Previous

Oct 1, 2018 –Sept 30, 2019

Oct 1, 2019 –Sept 30, 2020

Oct 1, 2020 –Sept 30, 2021

Oct 1, 2021 –Sept 30, 2022

Oct 1, 2022
and Onwards

8%

8%

10%

10%

10%

10%

Excise Tax: Cigarettes (JPY/000)

12,244

13,244

13,244

14,244

15,244

15,244

Excise Tax: Pipe Tobacco (JPY/kg)(a)12,244

13,244

13,244

14,244

15,244

15,244-Effective Specific Rate (JPY/kg)(b)-16,555

16,55517,805

19,055

19,055-Effective Ad Valorem Rate(c)(d)

-

30%

30%

30%

30%

30%

-Portion of New HTP System

-

20%

40%

60%

80%

100%

-Portion of Previous System

-

80%

60%

40%

20%

0%

VAT (Nominal)

Excise Tax: New HTP Category

HTP Phase-in Period(a) Previously, HTPs were taxed based on pipe tobacco excise tax rate(b) Taxable base is weight of heated tobacco(c) Taxable base is RSP net of VAT(d) Effective ad valorem rate is calculated as the excise tax incidence based on announced average RSP
Note: Based on current law

121

8

Retail Selling Prices
You will find retail selling prices by market and product category at the following link:• July 2024 – RSPs

122

8

PMI: Peer Group• Altria• Anheuser-Busch InBev• BAT• Coca-Cola• Colgate-Palmolive• Diageo• Heineken• Imperial Brands(a)• Japan Tobacco• Johnson & Johnson• Kimberly-Clark• Kraft-Heinz• McDonald's• Mondelēz International• Nestlé• PepsiCo• Procter & Gamble• Roche• Unilever(a) Formerly Imperial Tobacco
Source: Form 10-K for the year ended December 31, 2023 (p. 22)

123

8

Industry Volume Overview – Europe(Billion Cigarette Equivalent Units)
MarketProduct Group

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

FranceCigarettes

45.7

46.2

45.7

45.1

40.9

37.8

36.4

34.1

32.3

29.6

Germany

Italy

Poland

Spain

HTU

-

-

-

0.0

0.0

0.1

0.2

0.2

0.2

0.2

OTP

15.4

16.3

16.4

15.7

14.3

13.6

15.2

14.3

12.7

11.7

Cigarettes

80.4

80.0

78.1

76.7

74.8

72.4

73.0

71.6

66.5

65.4

HTU

-

-

0.0

0.1

0.4

0.9

1.7

2.4

3.7

3.5

OTP

43.5

43.0

42.5

41.3

40.9

40.3

42.2

41.3

40.0

39.9

Cigarettes

74.4

73.8

72.1

69.3

67.5

64.6

61.7

61.1

60.2

58.3

HTU

-

0.0

0.1

0.5

1.5

3.3

5.7

9.3

12.6

14.9

OTP

6.9

7.2

7.4

8.1

8.5

8.9

9.4

9.3

9.0

8.8

Cigarettes

42.1

41.1

41.3

41.6

42.8

45.0

43.2

45.6

49.4

49.2

HTU

-

-

-

0.1

0.4

1.2

2.4

3.8

6.3

7.5

OTP

3.6

4.0

4.1

5.0

5.5

6.2

7.2

7.8

7.9

7.8

Cigarettes

47.0

46.7

46.7

44.9

44.8

45.1

41.4

42.1

43.8

42.6

HTU

-

-

0.0

0.1

0.2

0.3

0.4

0.5

0.8

1.0

OTP

13.0

12.8

12.4

12.3

12.5

13.4

14.2

14.3

15.0

15.6

Note: Industry volumes are PMI estimates for tax-paid in-market sales (sales to the retail channel, depending on the market and distribution model) based on the latest available data from a number of internaland external sources. The figures include volumes above 50 million units for cigarettes, other tobacco products (“OTP”: primarily make-your-own tobacco, roll-your-own tobacco, pipe tobacco, cigars andcigarillos), and heated tobacco units (HTUs), where applicable. The figures exclude other tobacco and nicotine product categories that may be present in certain markets, most notably e-cigarettes, oral tobaccoand nicotine products, and shisha. The volumes may not reflect actual domestic consumption.
Source: PMI estimates as of July 10, 2024

124

8

Industry Volume Overview – Europe (cont.)(Billion Cigarette Equivalent Units)
MarketProduct Group

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Croatia

Cigarettes

6.1

6.1

6.0

6.2

6.2

6.1

5.7

5.7

6.0

6.4
0.7

Czech Republic

GreeceHungary

Latvia

HTU

-

-

-

0.0

0.1

0.2

0.3

0.4

0.5

OTP

0.3

0.3

0.2

0.3

0.3

0.3

0.4

0.4

0.4

0.4

Cigarettes

20.1

20.4

20.5

20.3

20.0

19.7

17.0

15.2

14.5

12.8

HTU

-

-

-

0.1

0.5

1.2

1.7

2.1

2.9

2.8

OTP

2.3

2.6

2.5

2.4

2.2

2.2

1.9

1.7

1.5

1.3

Cigarettes

16.8

16.4

15.3

13.8

12.8

12.1

10.9

11.1

11.3

11.5

HTU

-

-

0.0

0.2

0.6

1.2

1.5

2.0

2.7

3.4

OTP

4.0

4.1

4.2

3.8

3.9

4.2

4.3

4.4

4.4

4.5

Cigarettes

7.4

7.3

7.4

7.6

8.1

8.3

7.7

6.9

6.5

5.7

HTU

-

-

-

-

-

0.2

0.8

1.6

2.7

3.0

OTP

9.7

10.4

10.4

9.1

8.4

7.8

7.7

7.3

6.9

6.4

Cigarettes

1.9

1.9

1.9

1.9

2.0

1.9

1.8

1.7

1.8

1.7

HTU

-

-

-

-

0.0

0.1

0.2

0.2

0.2

0.3

OTP

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

Note: Industry volumes are PMI estimates for tax-paid in-market sales (sales to the retail channel, depending on the market and distribution model) based on the latest available data from a number of internaland external sources. The figures include volumes above 50 million units for cigarettes, other tobacco products (“OTP”: primarily make-your-own tobacco, roll-your-own tobacco, pipe tobacco, cigars andcigarillos), and heated tobacco units (HTUs), where applicable. The figures exclude other tobacco and nicotine product categories that may be present in certain markets, most notably e-cigarettes, oral tobaccoand nicotine products, and shisha. The volumes may not reflect actual domestic consumption.
Source: PMI estimates as of July 10, 2024

125

8Industry Volume Overview – Europe (cont.)(Billion Cigarette Equivalent Units)
MarketProduct Group

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Lithuania

Cigarettes

2.9

3.1

3.1

2.9

2.8

2.7

2.4

2.4

2.2

2.1

NorwayPortugal

Romania

Slovak Republic

HTU

-

-

-

0.0

0.1

0.4

0.6

0.7

1.0

1.1

OTP

0.1

0.1

0.1

0.1

0.1

0.2

0.2

0.2

0.3

0.2

Cigarettes

1.8

1.8

1.7

1.7

1.4

1.4

1.9

1.9

1.3

1.3

OTP

1.1

1.0

1.0

0.9

0.7

0.7

0.9

0.9

0.7

0.6

Snus

1.8

1.8

1.9

1.9

2.0

2.1

2.9

3.5

2.7

2.1

Cigarettes

9.6

9.7

9.8

10.2

9.7

9.7

9.0

8.8

8.7

8.0

HTU

-

0.0

0.0

0.1

0.3

0.6

0.9

1.2

1.7

2.1

(a)

OTP

2.2

1.8

1.5

1.2

1.0

1.0

1.0

1.0

1.0

0.9

Cigarettes

23.4

24.0

24.2

24.3

24.4

25.5

25.6

25.9

26.4

26.3

HTU

-

0.0

0.0

0.2

0.5

0.7

0.9

1.3

2.0

2.6

OTP

-

-

0.0

0.0

0.0

0.0

0.1

0.2

0.2

0.3

Cigarettes

7.0

7.1

7.1

7.2

7.1

7.1

6.9

6.4

6.2

5.9

HTU

-

-

-

0.0

0.3

0.5

0.7

0.9

1.2

1.2

OTP

0.3

0.5

0.5

0.3

0.3

0.3

-

-

-

-

Note: Industry volumes are PMI estimates for tax-paid in-market sales (sales to the retail channel, depending on the market and distribution model) based on the latest available data from a number of internaland external sources. The figures include volumes above 50 million units for cigarettes, other tobacco products (“OTP”: primarily make-your-own tobacco, roll-your-own tobacco, pipe tobacco, cigars andcigarillos), and heated tobacco units (HTUs), where applicable. The figures exclude other tobacco and nicotine product categories that may be present in certain markets, most notably e-cigarettes, oral tobaccoand nicotine products, and shisha. The volumes may not reflect actual domestic consumption.
(a) On a like-for-like basis (applying post-acquisition conversion methodology to 2022), the estimated total Snus market in Norway is higher by ~5%. This data does not include nicotine pouch volumes.
Source: PMI estimates as of July 10, 2024

126

8

Industry Volume Overview – Europe (cont.)(Billion Cigarette Equivalent Units)
MarketProduct Group

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Slovenia

Cigarettes

3.7

3.6

3.6

3.5

3.5

3.4

3.2

3.2

3.3

3.1

SwedenSwitzerland

HTU

-

-

-

0.0

0.1

0.1

0.2

0.3

0.4

0.4

OTP

0.4

0.3

0.3

0.3

0.3

0.3

0.3

0.2

0.2

0.2

Cigarettes

6.0

5.7

5.7

5.4

5.3

5.2

5.0

4.8

4.8

4.5

OTP

0.3

0.2

0.2

0.2

0.2

0.2

0.1

0.1

0.2

0.2

Snus

8.0

8.0

8.3

8.5

8.9

9.0

8.8

8.8

9.2

6.1

Cigarettes

10.2

9.8

9.4

9.3

9.1

8.8

9.2

8.9

8.5

8.0

HTU

-

0.0

0.0

0.1

0.2

0.3

0.4

0.6

0.9

1.1

OTP

(a)

1.3

1.3

1.4

1.4

1.4

1.5

1.6

1.7

1.7

1.7

33.8

31.4

29.6

27.9

26.0

23.5

24.1

23.7

20.3

17.0

HTU

-

-

0.0

0.0

0.0

0.1

0.3

0.5

0.6

0.7

OTP

10.4

10.0

10.3

10.5

10.6

10.7

13.8

14.4

11.9

9.6

United Kingdom Cigarettes

Note: Industry volumes are PMI estimates for tax-paid in-market sales (sales to the retail channel, depending on the market and distribution model) based on the latest available data from a number of internaland external sources. The figures include volumes above 50 million units for cigarettes, other tobacco products (“OTP”: primarily make-your-own tobacco, roll-your-own tobacco, pipe tobacco, cigars andcigarillos), and heated tobacco units (HTUs), where applicable. The figures exclude other tobacco and nicotine product categories that may be present in certain markets, most notably e-cigarettes, oral tobaccoand nicotine products, and shisha. The volumes may not reflect actual domestic consumption.
(a) On a like-for-like basis (applying post-acquisition conversion methodology to 2022), the estimated total Snus market in Sweden is lower by ~12%. This data does not include nicotine pouch volumes.
Source: PMI estimates as of July 10, 2024

127

8

Industry Volume Overview – SSEA, CIS & MEA(Billion Cigarette Equivalent Units)
MarketProduct Group

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Egypt

Cigarettes

82.0

78.4

83.2

86.4

86.0

87.4

85.8

93.1

92.8

72.8

Indonesia

Cigarettes

HTU

Philippines
RussiaTurkey

-

-

-

-

-

-

-

0.2

0.8

1.3

319.0

320.0

315.6

303.5

302.5

305.2

275.9

293.5

304.0

291.6

OTP

9.6

11.5

12.7

14.3

14.0

12.6

21.0

17.9

22.6

26.9

Cigarettes

94.9

90.2

79.3

74.9

73.2

70.5

61.8

56.0

53.2

42.7

HTU

-

-

-

-

-

-

0.0

0.2

0.2

0.2

314.1

294.1

280.0

259.7

236.3

217.7

203.7

196.9

187.6

182.2

Cigarettes
HTU

-

0.0

0.0

0.3

2.6

8.8

15.4

19.9

21.2

21.2

Cigarettes

94.7

103.2

105.5

106.2

118.5

119.7

114.8

125.1

116.8

137.4

OTP

-

-

-

-

-

-

-

-

11.9

12.4

Note: Industry volumes are PMI estimates for tax-paid in-market sales (sales to the retail channel, depending on the market and distribution model) based on the latest available data from a number of internaland external sources. The figures include volumes above 50 million units for cigarettes, other tobacco products (“OTP”: primarily make-your-own tobacco, roll-your-own tobacco, pipe tobacco, cigars andcigarillos), and heated tobacco units (HTUs), where applicable. The figures exclude other tobacco and nicotine product categories that may be present in certain markets, most notably e-cigarettes, oral tobaccoand nicotine products, and shisha. The volumes may not reflect actual domestic consumption.
Source: PMI estimates as of July 10, 2024

128

8

Industry Volume Overview – EA, AU & PMI DF(Billion Cigarette Equivalent Units)
MarketProduct Group

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Australia

Cigarettes

16.8

16.5

15.7

13.9

12.8

12.0

11.0

9.7

8.9

7.2

OTP
Japan

South Korea
New ZealandSingapore

Cigarettes

3.3

3.4

3.5

3.5

3.8

3.9

3.7

3.2

2.8

2.3

186.2

182.3

173.8

151.4

132.7

121.1

102.8

94.4

92.7

89.2

HTU

0.0

0.2

5.2

20.0

34.6

36.7

40.1

45.0

50.4

56.6

OTP

-

-

-

-

0.9

4.0

12.3

11.1

5.1

3.2

Cigarettes

88.1

67.3

73.6

69.0

62.8

61.2

64.1

62.8

61.9

60.0

HTU

-

-

-

1.6

6.8

7.3

7.5

8.9

10.7

12.0

Cigarettes

1.8

1.8

1.8

1.7

1.7

1.5

1.4

1.2

1.1

1.0

HTU

-

-

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

OTP

0.9

0.9

0.8

0.8

0.7

0.8

0.8

0.7

0.5

0.5

Cigarettes

2.8

2.8

2.8

2.8

2.8

2.7

3.1

3.0

2.7

2.3

Note: Industry volumes are PMI estimates for tax-paid in-market sales (sales to the retail channel, depending on the market and distribution model) based on the latest available data from a number of internaland external sources. The figures include volumes above 50 million units for cigarettes, other tobacco products (“OTP”: primarily make-your-own tobacco, roll-your-own tobacco, pipe tobacco, cigars andcigarillos), and heated tobacco units (HTUs), where applicable. The figures exclude other tobacco and nicotine product categories that may be present in certain markets, most notably e-cigarettes, oral tobaccoand nicotine products, and shisha. The volumes may not reflect actual domestic consumption.
Source: PMI estimates as of July 10, 2024

129

8

Industry Volume Overview – Americas(Billion Cigarette Equivalent Units)
MarketProduct Group

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Argentina

Cigarettes

41.9

40.8

38.7

38.2

36.9

34.1

31.0

30.0

30.3

28.8

Mexico

OTP

0.2

0.2

0.2

0.3

0.2

0.1

0.1

0.2

0.0

0.1

Cigarettes

33.5

33.8

36.2

35.8

35.5

35.5

30.5

31.8

32.0

29.8

HTU

-

-

-

-

-

0.0

0.1

0.1

0.1

0.1

Note: Industry volumes are PMI estimates for tax-paid in-market sales (sales to the retail channel, depending on the market and distribution model) based on the latest available data from a number of internaland external sources. The figures include volumes above 50 million units for cigarettes, other tobacco products (“OTP”: primarily make-your-own tobacco, roll-your-own tobacco, pipe tobacco, cigars andcigarillos), and heated tobacco units (HTUs), where applicable. The figures exclude other tobacco and nicotine product categories that may be present in certain markets, most notably e-cigarettes, oral tobaccoand nicotine products, and shisha. The volumes may not reflect actual domestic consumption.
Source: PMI estimates as of July 10, 2024

130

8

Sustainability Business Transformation Metrics - Glossary• Unless otherwise stated, all applicable business transformation metrics include Swedish Match related data as of November 11, 2022 (acquisition date), as well as
Vectura Fertin Pharma. In 2023, we evaluated and republished a new set of aspirations for 2030 to ensure they remain ambitious, reasonable, and achievable in thecontext of a dynamic and evolving smoke-free industry, and impacts of our recent acquisitions.
• For definition of available for sale, see PMI Integrated Report 2023 Glossary.
• Related to number of markets where adjusted net revenues from smoke-free products exceed 75% of adjusted total net revenues: excluding PMI Duty Free. WorldBank report issued in 2023 is used on a comparative basis for income level classification. For definition of low- and middle-income markets, see PMI Integrated
Report 2023 Glossary.
• Change in combustible tobacco product shipment volume (billion units) vs. 2015 baseline is calculated based on millions of units. For definition of heated tobacco
units and combustible tobacco products, see PMI Integrated Report 2023 Glossary. Combustible tobacco products shipment volume includes cigarettes and othertobacco products expressed in cigarette equivalent units.
• Adjusted R&D expenditure excludes asset acquisition cost related to OtiTopic, Inc. in 2021. Total reported R&D expenditure in 2021 including these items
amounted to USD 617 million.
• Direct spend focuses on materials used in the manufacture of our products; it includes tobacco leaf, direct materials, and electronic devices and accessories. Data
excludes Swedish Match and Vectura Fertin Pharma.
• Number of factories producing smoke-free products out of total number of factories reflects the number of factories operated and owned by PMI at the end of therespective year. As of 2023, “Smoke-free products factories” is defined as manufacturing facilities producing heated tobacco units and oral nicotine products.
Additionally, in 2023, PMI evolved its approach to report the number of factories based on location instead of based on plant. If a facility is in one location but has
several physical areas (plants), the facility is counted as one. To provide comparability, 2022 data has been restated on the same basis.

131

8

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Diluted EPS to Reported Diluted EPS, excluding Currency,
and Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS, excluding Currency(Unaudited)Years Ended December 31,

2023

2022

% Change

Reported Diluted EPS$ 5.02$ 5.81(13.6)%

Less: Currency(0.63)

Reported Diluted EPS, excluding Currency$ 5.65$ 5.81(2.8)%

Years Ended December 31,
2023

2022

% Change

Reported Diluted EPS$ 5.02$ 5.81(13.6)%

Asset impairment and exit costs

0.06

-

Termination of distribution arrangement in the Middle East

0.04

-

Impairment of goodwill and other intangibles

0.44

0.06
0.09

Amortization of intangibles

0.25

Charges related to the war in Ukraine

0.03

0.08

Costs associated with Swedish Match AB offer

-

0.06

Swedish Match AB acquisition accounting related item

0.01

0.06

Income tax impact associated with Swedish Match AB financing(0.11)(0.13)-South Korea indirect tax charge

0.11

Termination of agreement with Foundation for a Smoke-Free World

0.07

-

Fair value adjustment for equity security investments(0.02)(0.02)Tax items

0.11(0.03)

Adjusted Diluted EPS$ 6.01$ 5.980.5%

Less: Currency(0.63)

Adjusted Diluted EPS, excluding Currency$ 6.64$ 5.98

11.0%

132

8

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)
Adjusted

Adjusted
Net

Special

Revenues

Items

Net

Net

Adjusted

Revenues

CurrencyNetexcluding

Revenues

Acqui-

Revenues

Net

Specialsitions

excluding

Revenues

Items

$(80)

6,201
1,944

ExcludingExcluding

Total

Currency

Revenues

Currency& Acquisitions& Acquisitions
Years Ended

2023

10,629Net

Currency

Currency$ 13,598

Adjusted2022

December 31,% Change$ 13,598$ 249$ 13,349$-$ 13,349

Europe$ 12,869$-$ 12,869

5.7%

3.7%

3.7%

10,709

(1,060)11,769-11,769

SSEA, CIS & MEA

10,467-

10,467

2.3%

12.4%

12.4%

-

6,201

(400)

6,601

-

6,601

EA, AU & PMI DF

5,936

-

5,936

4.5%

11.2%

11.2%

-

1,944

96

1,848

-

1,848

Americas

1,903

-

1,903

2.2%

(2.9)%(2.9)%

2,496

-

2,496

-

2,496

2,113

383

Swedish Match

316

-

316

+100%

+100%

21.2%

306

-

306

3

303

-

303

Wellness and Healthcare

271

-

271

12.9%

11.8%

11.8%

$ 35,174$ (80)$ 35,254$ (1,112)$ 36,366$ 2,113$ 34,253$ 31,762$-$ 31,762

11.0%

14.5%

7.8%

(a)

Total PMI

133(a) Reflects a reduction in net revenues of $80 million related to the termination of distribution arrangement in the Middle East

8

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)
Adjusted

Adjusted
Operating
IncomeSpecialItems(a)Operating

Adjusted
OperatingCurrency

Incomeexcluding

IncomeOperatingOperating

IncomeAcqui-

Incomeexcludingsitions

SpecialItems(a)Currency

Currency

Adjusted
Operating

Total

IncomeExcludingCurrency

ExcludingCurrency& Acquisitions& Acquisitions
Years Ended

2023

2022

December 31,% Change$ 6,012$ (202)$ 6,214$ 186$ 6,028$-$ 6,028

Europe$ 5,802$ (242)$ 6,0442.8%(0.3)%(0.3)%

3,047

(178)

3,225

(653)

3,878

-

3,878

SSEA, CIS & MEA

3,864

(56)

3,920

(17.7)%(1.1)%(1.1)%

2,481

(254)

2,735

(395)

3,130

-

3,130

EA, AU & PMI DF

2,424

(28)

2,452

11.5%

27.7%

27.7%

62

(19)

81

(197)

278

-

278

Americas

436

(14)

450

(82.0)%(38.2)%(38.2)%

824

(390)

1,214

(8)

1,222

1,027

195

Swedish Match

(22)

(151)

129

+100%

+100%

51.2%

(870)

(738)

(132)

(6)

(126)

-

(126)

Wellness and Healthcare

(258)

(171)

(87)

(51.7)%(44.8)%(44.8)%$ 11,556$ (1,781)$ 13,337$ (1,073)$ 14,410$ 1,027$ 13,383$ 12,246$ (662)$ 12,908

3.3%

11.6%

3.7%

(a) See Slide 135

Total PMI

134

8

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Operating Income to Adjusted Operating Income($ in millions) / (Unaudited)Years Ended December 31,

PMI

2023

Reported Operating Income2022$ 11,556$ 12,246

Asset Impairment & Exit Costs

(109)

-

Termination of distribution arrangement in the Middle East

(80)

-

Impairment of goodwill and other intangibles

(680)

(112)

Amortization of intangibles

(497)

(159)

Charges related to the war in Ukraine

(53)

(151)

-

(115)

Swedish Match AB acquisition accounting related items

(18)

(125)

South Korea Indirect Tax Charge

(204)

-

Termination of agreement with Foundation for a Smoke-Free World

(140)

-

$ 13,337$ 12,908

Costs associated with Swedish Match AB offer

Adjusted Operating Income

135

8

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

Adjusted

OperatingNet

Income(a)

Revenues(b)Adjusted
Operating
IncomeMarginAdjusted

Adjusted

OperatingNet

IncomeRevenues

excludingexcludingCurrency(a)Currency(b)Adjusted

Adjusted

OperatingOperating

IncomeIncomeMarginexcludingexcludingCurrency

Currency& Acquisitions(a)Adjusted
Net Revenues
excludingCurrency& Acquisitions(b)Adjusted
Operating
Income Margin
excluding

Adjusted

Adjusted

OperatingNet

IncomeCurrency(a)

Revenues(b)Adjusted

Adjusted

OperatingOperating

IncomeIncomeMarginMarginYears Ended

Income Margin

Currency

2022

December 31,

Operating
Income Margin

Operatingexcluding& Acquisitions

2023

Adjusted

Adjusted

excludingCurrency& Acquisitions% Points Change$ 6,214$ 13,598

45.7%$ 6,028$ 13,349

45.2%$ 6,028$ 13,349

45.2%

Europe$ 6,044$ 12,869

47.0%

(1.3)

(1.8)

(1.8)

3,225

10,709

30.1%

3,878

11,769

33.0%

3,878

11,76933.0%

SSEA, CIS & MEA

3,920

10,467

37.5%

(7.4)

(4.5)

(4.5)

2,735

6,201

44.1%

3,130

6,601

47.4%

3,130

6,601

47.4%

EA, AU & PMI DF

2,452

5,936

41.3%

2.8

6.1

6.1

81

1,944

4.2%

278

1,848

15.0%

278

1,848

15.0%

Americas

450

1,903

23.6%

(19.4)

(8.6)

(8.6)

1,214

2,496

48.6%

1,222

2,496

49.0%

195

383

50.9%

Swedish Match

129

316

40.8%

7.8

8.2

10.1

(132)

306

(43.1)%

(126)

303

(41.6)%

(126)

303

(41.6)%

Wellness and Healthcare

(87)

271

(32.1)%(11.0)

(9.5)

(9.5)

$ 13,337$ 35,254

37.8%$ 14,410$ 36,366

39.6%$ 13,383$ 34,253

39.1%

Total PMI

$ 12,908$ 31,762

40.6%

(2.8)

(1.0)

(1.5)

(a) For the calculation of Adjusted Operating Income and Adjusted Operating Income excluding currency and acquisitions refer to slide 134(b) For the calculation of Adjusted Net Revenues excluding currency and acquisitions refer to slide 133

136

8

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Restatement and Reconciliation of Adjusted Net Revenues – PMI and Swedish Match Combined($ in millions) / (Unaudited)Years Ended December 31,
Var. excl.

2023

2022

Total

Var.

Currency

Net Revenues$ 35,174$ 31,762$ 3,41210.7%$ (1,112)

14.2%

(a)

$ (80)---

currency

Total PMI

Adjustments

Adjusted Net Revenues-$ (80)$ 35,254$ 31,762$ 3,492

11.0%$ (1,112)

14.5%$ 2,496$ 316$ 2,180

+100%

$-

+100%

$ 32,758$ 31,446$ 1,3124.2%$ (1,112)

7.7%$ 2,496$ 2,133

$ 363

17.0%

$ (65)

20.1%

Swedish Match
Net Revenues
Total PMI excl. Swedish Match
Adjusted Net Revenues
Pro Forma Swedish Match Financial Information
Net Revenues
Combustible Net Revenues

$ 431

$ 426

$5

1.3%

$-

1.3%

SFP Net Revenues$ 2,065$ 1,707

$ 358

21.0%

$ (65)

24.8%

Combined Total Net Revenues$ 35,254$ 33,579$ 1,675

5.0%$ (1,177)

8.5%(a) Reflects a reduction in net revenues related to the termination of distribution arrangement in the Middle East. Note: The unaudited pro forma combined financial information was prepared using the acquisition method of accounting
and was based on the historical financial information of PMI and Swedish Match as disclosed in Form 10-Q for the 9 months ended September 30, 2023, Item 1, Note 2 Acquisitions. The unaudited quarterly pro forma 2022 Swedish
Match net revenues are prepared on the same basis as the pro forma Swedish Match financial information for the year ended December 31, 2022 as disclosed in Form 10-Q for the 9 months ended September 30, 2023, Item 1, Note 2
Acquisitions, utilizing the full year average exchange rates. The currency variance includes adjustments to the 2022 quarterly average exchange rates. The unaudited pro forma financial information is not necessarily indicative of what theconsolidated results of operations would have been had the acquisition been completed on January 1, 2021. In addition, the unaudited pro forma financial information is not a projection of future results of operations of the combined
company, nor does it reflect the expected realization of any synergies or cost savings associated with the acquisition. Totals may not foot due to roundings

137

8

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Restatement and Reconciliation of Adjusted Net Revenues – PMI and Swedish Match Combined($ in millions) / (Unaudited)

Quarters Ended December 31,
Currency

Var. excl.

2023

2022

Total

Var.

Net Revenues$ 9,047$ 8,152

$ 895

11.0%

$ (78)

11.9%

Adjustments

-

-

-

-

-

-

Adjusted Net Revenues$ 9,047$ 8,152

$ 895

11.0%

$ (78)

11.9%

$ 682

$ 316

$ 366

+100%

$-

+100%

$ 8,365$ 7,836

$ 529

6.8%

$ (78)

7.7%

Net Revenues

$ 682

$ 589

$ 93

15.7%

$ (59)

25.7%

Combined Total Net Revenues$ 9,047$ 8,425

$ 622

7.4%

$ (137)9.0%

currency

Total PMI

Swedish Match
Net Revenues
Total PMI excl. Swedish Match
Adjusted Net Revenues
Pro Forma Swedish Match Financial Information

Note: The unaudited pro forma combined financial information was prepared using the acquisition method of accounting and was based on the historical financial information of PMI and Swedish Match as disclosed in Form 10-Q for the
9 months ended September 30, 2023, Item 1, Note 2 Acquisitions. The unaudited quarterly pro forma 2022 Swedish Match net revenues are prepared on the same basis as the pro forma Swedish Match financial information for the year
ended December 31, 2022 as disclosed in Form 10-Q for the 9 months ended September 30, 2023, Item 1, Note 2 Acquisitions, utilizing the full year average exchange rates. The currency variance includes adjustments to the 2022
quarterly average exchange rates. The unaudited pro forma financial information is not necessarily indicative of what the consolidated results of operations would have been had the acquisition been completed on January 1, 2021. In
addition, the unaudited pro forma financial information is not a projection of future results of operations of the combined company, nor does it reflect the expected realization of any synergies or cost savings associated with theacquisition. Totals may not foot due to roundings

138

8

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Net Revenues by Product Category($ in millions) / (Unaudited)

Net Revenues

Years Ended

Quarter Ended

Quarter Ended

Quarter Ended

Quarter EndedYear Ended

December 31,

March 31,

June 30,

September 30,

December 31,

December 31,

2023

2023

2023

2015

2016

2017

2018

2019

2020

2021

$ 26,595$ 25,818$ 24,970$ 25,378$ 24,083$ 21,747$ 22,067

Smoke-free excl. W&H

199

867

3,778

4,247

5,722

6,947

Wellness and Healthcare

-

-

-

-

-

Smoke-free incl. W&H

199

867

3,778

4,247

$ 26,794$ 26,685$ 28,748$ 29,625

Combustible Tobacco

Total PMI

2022

2023

$ 21,572$ 5,223

9,237

9,919

-

101

5,722

6,947

9,338

$ 29,805$ 28,694$ 31,405

(a)

(a)

(b)

2023

$ 5,790$ 5,832$ 5,489$ 22,334

2,710

3,101

3,234

3,489

12,534

271

86

76

75

69

306

10,190

2,796

3,177

3,309

3,558

12,840$ 31,762$ 8,019$ 8,967$ 9,141$ 9,047$ 35,174(b)(a) 2021 includes a reduction in net revenues of $246 million related to the Saudi Arabia customs assessment. Excluding this impact total PMI adjusted net revenues are $31,651 million and for combustible tobacco $22,313 million(b) First-quarter 2023 includes a reduction in net revenues of $80 million related to the termination of distribution arrangement in the Middle East. Excluding this impact total PMI adjusted net revenues are $8,099 million and for combustible
tobacco $5,303 million(c) Year Ended December 31, 2023 includes a reduction in net revenues of $80 million related to the termination of distribution arrangement in the Middle East. Excluding this impact total PMI adjusted net revenues are $35,254 million and for
combustible tobacco $22,414 million
Note: Sum of product categories might not foot to Total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million

139

8

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Net Revenues to Adjusted Net Revenues by Product Category($ in millions) / (Unaudited)

Quarter ended December 31

Year ended December 31

Net Revenues

Special Items

Adj. Net Revenues$ 9,047$-$ 9,047
5,489

5,489

-

61%

2,880

575

104

-

-

-

2,880

2023

Net Revenues

Special Items(a)Adj. Net Revenues

Total PMI

$ 35,174$ (80)$ 35,254

Combustible Tobacco

22,334(80)

22,414% of total adjusted

Smoke-Free Inhalable Products

32%% of total adjusted

575

Smoke-Free Oral Products

6%% of total adjusted

104

Smoke-Free Other

1%% of total adjusted(a) Net revenues reflects a reduction related to the termination of distribution arrangement in the Middle East
Note: Sum of product categories and special items might not foot due to roundings

64%

10,375-

10,375
29%

2,003

-

2,003
6%

462

-

462
1%

140

(c)

(c)

8

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Operating Income to Adjusted Operating Income, excluding Currency, Acquisitions and RBH Impact($ in millions) / (Unaudited)
Operating
IncomeSpecial(a)

Items

Adjusted

Adjusted
OperatingCurrency

IncomeOperating

Adjusted

Operating Income
excludingAcquisitions

Currency

Operating Income
excluding Currency$ (30)$ 11,698$ (474)

Full Year Ended$-$ (609)$ 13,584$ 269$ (662)$ 12,908$ (1,507)$ (1,254)$ 6,551$ 19$ 13,296$ 14,415$ 99$ (163)$ 3,052$ (527)$ 6,786$ 574$ 6,462$ (1,781)$ 13,337$ (609)Total PMI

$ 6,354$ (248)$ 3,353$ 138$ 3,215$ 2,924$ (52)$ 5,892$ (414)$ 12,246$ (662)Six months ended$ 7,374$ 453$ 6,921

Total PMI
Full Year Ended$ 1,027$ 13,383

Total PMI

Acquisitions$-$ 11,771

15.4%

$-

$ 13,584(5.0)%

4.6%

4.6%% Change
13.1%

13.0%

% Change
6.1%

5.4%

% Change$-$ 6,602(0.8)%$-$ 2,976

2.6%$-$ 6,306

7.6%$-$ 12,908

3.3%

6.6%

(2.1)%% Change
12.7%

8.0%

% Change
16.9%

9.8%

% Change2022

December 31,$ 14,410

0.6%

2022

December 31,$ (588)$ 11,634

2022

Total PMI

ExcludingCurrency &% Change
$ 126

2022

December 31,$ (301)$ (1,073)$ 12,975

Quarters Ended2023$ 11,556$ (103)June 30,$ 7,0362023$ 6,259$ 11,668

Six months ended$ (485)

Income2021

December 31,
Total PMI

$ 14,316

Currency

2020

Total PMI
Full Year Ended2023$ 2,889$ (1,229)

December 31,$ 13,3152023$ 5,297$ 10,531

Full Year Ended2022$ 12,246

Total PMI(c)$ 12,172

Excluding

Total

2019

December 31,$ 12,172

Operatingattributable to

Items

RBH(b)

2021$ 12,975

IncomeAdjusted

Income(a)& Acquisitions

2020$ 11,668

SpecialOperating

11.6%

3.7%

(a) See Slide 142(b) Represents the impact attributable to RBH from January 1, 2019 through March 21, 2019(c) Adjusted Operating Income reflects the historical financials as reported and includes amortization and impairment of intangible assets for the comparison 2020 vs. 2019

141

8

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Operating Income to Adjusted Operating Income and RBH Impact($ in millions) / (Unaudited)

Reported Operating Income

Year

Year

Year

Six Months

QuarterSix Months

Year

Six Months

QuarterSix Months

Year

Ended Dec

Ended Dec

Ended Dec

Ended Jun 30,

Ended Dec

Ended Dec

Ended Dec

Ended Jun 30,

Ended Dec

Ended Dec

Ended Dec

31, 2019

31, 2020

31, 2021

2022

30, 2022

31, 2022

31, 20222023

30, 2023

31, 2023

31, 2023$ 12,246$ 5,297$ 2,889$ 6,259$ 10,531$ 11,668$ 12,975$ 6,354$ 2,924$ 5,892$ 11,556

Loss on deconsolidation of RBH

(239)

-

-

-

-

-

-

-

-

-

-

Russia excise and VAT audit charge

(374)

-

-

-

-

-

-

-

-

-

-

Canadian tobacco litigation-related expense

(194)

-

-

-

-

-

-

-

-

-

-

Asset impairment and exit costs

(422)

(149)

(216)

-

-

-

-

(109)

-

-

(109)

Brazil Indirect Tax Credit

-

119

-

-

-

-

-

-

-

-

-

Asset acquisition cost

-

-

(51)

-

-

-

-

-

-

-

-

Saudi Arabia customs assessments

-

-

(246)

-

-

-

-

-

-

-

-

Impairment of goodwill and other intangibles

-

-

-

-

-

(112)

-

(680)

-

-

(680)

Amortization of intangibles

-

(73)

(96)

(74)

(58)

(85)

(271)

(163)

(129)

(334)

(497)

Cost associated to Swedish Match AB offer

-

-

-

(52)

154

(63)

(115)

-

-

-

-

Swedish Match AB acquisition accounting related items

-

-

-

-

(125)

(125)

(125)

(18)

-

-

(18)

Charges related to the war in Ukraine

-

-

-

(122)

(23)

(29)

(151)

-

(34)

(53)

(53)

Termination of distribution arrangement in the Middle East

-

-

-

-

-

-

-

(80)

-

-

(80)

South Korea Indirect Tax Charge

-

-

-

-

-

-

-

(204)

-

-

(204)

Termination of agreement with Foundation for a Smoke-Free World
Adjusted Operating Income
Less Operating Income attributable to RBH
Adjusted Operating Income$ 11,760$ 11,771$ 13,584---$ 6,602$ 2,976$ 6,306$ 12,908--$ 6,551$ 3,052

(140)

(140)

$ 6,786$ 13,337

126$ 11,634

142

8

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Research & Development Expenditure by Product Category($ in millions) / (Unaudited)Years Ended
December 31,

2015

2021

2022

Combustible Tobacco

$ 129

$7

Smoke-free incl. Wellness & Healthcare

294
$ 423

Total PMI

2023
$7

$4

609 (a)

634

705

(a)

$ 642

$ 709

$ 617

(a) Includes asset acquisition cost of $51 million related to OtiTopic Inc. in August 2021. Excluding this impact total PMI adjusted R&D expenditures are $566 million and for smoke-free incl. W&H $558 million
Note: Sum of product categories might not foot to Total PMI due to roundings143