Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 8, 2024

Philip Morris International Inc.

(Exact name of registrant as specified in its charter)

Virginia

1-33708

13-3435103

(State or other jurisdiction

of incorporation)

(Commission File Number)

(I.R.S. Employer

Identification No.)

677 Washington Blvd, Ste. 1100

Stamford

Connecticut

06901

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including area code: (203) 905-2410

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, no par value

New York Stock Exchange

2.875% Notes due 2024

PM24

New York Stock Exchange

2.875% Notes due 2024

PM24C

New York Stock Exchange

0.625% Notes due 2024

PM24B

New York Stock Exchange

3.250% Notes due 2024

PM24A

New York Stock Exchange

2.750% Notes due 2025

PM25

New York Stock Exchange

3.375% Notes due 2025

PM25A

New York Stock Exchange

2.750% Notes due 2026

PM26A

New York Stock Exchange

2.875% Notes due 2026

PM26

New York Stock Exchange

0.125% Notes due 2026

PM26B

New York Stock Exchange

3.125% Notes due 2027

PM27

New York Stock Exchange

3.125% Notes due 2028

PM28

New York Stock Exchange

2.875% Notes due 2029

PM29

New York Stock Exchange

3.375% Notes due 2029

PM29A

New York Stock Exchange

0.800% Notes due 2031

PM31

New York Stock Exchange

3.125% Notes due 2033

PM33

New York Stock Exchange

2.000% Notes due 2036

PM36

New York Stock Exchange

1.875% Notes due 2037

PM37A

New York Stock Exchange

6.375% Notes due 2038

PM38

New York Stock Exchange

1.450% Notes due 2039

PM39

New York Stock Exchange

4.375% Notes due 2041

PM41

New York Stock Exchange

4.500% Notes due 2042

PM42

New York Stock Exchange

3.875% Notes due 2042

PM42A

New York Stock Exchange

4.125% Notes due 2043

PM43

New York Stock Exchange

4.875% Notes due 2043

PM43A

New York Stock Exchange

4.250% Notes due 2044

PM44

New York Stock Exchange


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).


Emerging growth company			☐


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			☐


Item 2.02.			Results of Operations and Financial Condition.

On February 8, 2024, Philip Morris International Inc. (the “Company”) issued a press release announcing its financial results for the quarter and the fiscal year ended December 31, 2023, as well as the accompanying glossary of key terms, definitions, explanatory notes, select financial information and reconciliations of non-GAAP financial measures. The earnings release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference to this Item 2.02. The glossary of key terms, definitions, explanatory notes, select financial information and reconciliations of non-GAAP financial measures is attached as Exhibit 99.2 to this Current Report on Form 8-K and incorporated by reference to this Item 2.02.

In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in Item 2.02 of this Current Report on Form 8-K shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as may be expressly set forth by specific reference in such filing or document.


Item 9.01.			Financial Statements and Exhibits.


(d)			Exhibits.


99.1			Philip Morris International Inc. Press Release, dated February 8, 2024 (furnished pursuant to Item 2.02).


99.2			Glossary of Key Terms, Definitions, Explanatory Notes, Select Financial Information and Reconciliations of Non-GAAP Financial Measures (furnished pursuant to Item 2.02).


104			Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document and contained in Exhibit 101).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



PHILIP MORRIS INTERNATIONAL INC.

By:						/s/ DARLENE QUASHIE HENRY
Name:						Darlene Quashie Henry
Title:						Vice President, Associate General Counsel & Corporate Secretary

Date: February 8, 2024

Exhibit 99.1

PRESS RELEASE

Investor Relations:

Media:

Stamford, CT: +1 (203) 905 2413

Lausanne: +41 (0)58 242 4500

Lausanne: +41 (0)58 242 4666

Email: David.Fraser@pmi.com

Email: InvestorRelations@pmi.com

PHILIP MORRIS INTERNATIONAL REPORTS 2023 FOURTH-QUARTER

AND FULL-YEAR RESULTS;

DELIVERS 2023 FULL-YEAR REPORTED DILUTED EPS OF $ 5.02

AND ADJUSTED DILUTED EPS OF $ 6.01, REPRESENTING CURRENCY-NEUTRAL GROWTH OF 11.0%;

PROVIDES 2024 EPS FORECAST

STAMFORD, CT, February 8, 2024 – Philip Morris International Inc. (PMI) (NYSE: PM) today announces its 2023 fourth-quarter and full-year results. Further explanation of PMI's use of non-GAAP measures cited in this document and reconciliations to the most directly comparable U.S. GAAP measures can be found in the “Non-GAAP Measures, Glossary and Explanatory Notes” section of this release, in Exhibit 99.2 to the company's Form 8-K dated February 8, 2024, and at www.pmi.com/2023Q4earnings.

2023 FOURTH-QUARTER AND FULL-YEAR HIGHLIGHTS


	Fourth-Quarter				Full-Year
		Change vs. Q4 2022				Change vs. FY 2022
	Amount	Reported	Adjusted		Amount	Reported	Adjusted
Total Cig. & HTU Shipment Volume (units bn)	185.1	(0.5)%			738.2	1.0%

HTU Shipment Volume (units bn)	34.0	6.1%			125.3	14.7%
Oral Product Shipment Volume (mn cans) (1)	219.6	+100%	23.4%	(2)	799.3	+100%	16.8%	(2)
Net Revenues ($ bn)	$9.0	11.0%	8.3%	(3)	$35.2	10.7%	7.8%	(3)
Smoke-Free Product Net Revenues ($ bn)	$3.6	21.1%	13.6%	(3)	$12.8	26.0%	12.8%	(3)
- % of Total Net Revenues	39.3%	3.3pp			36.5%	4.4pp

Operating Income ($ bn)	$2.9	(1.2)%	8.0%	(3)	$11.6	(5.6)%	3.7%	(3)

Diluted Earnings per Share	$1.41	(8.4)%			$5.02	(13.6)%
Adjusted Diluted Earnings per Share	$1.36		12.2%	(4)	$6.01		11.0%	(4)
(1) Excludes snuff, snuff leaf and U.S. chew (2) On a pro forma basis (including Swedish Match in all periods) (3) On an organic basis (4) Excluding currency

Fourth-Quarter

•Smoke-free products accounted for 39.3% of total net revenues

•Adjusted in-market sales volume for HTUs, which excludes the net unfavorable impact of estimated distributor and wholesaler inventory movements, up by an estimated 13.9%

•Total IQOS users at quarter-end up by 1.2 million versus September 2023

•Market share for HTUs in IQOS markets up by 1.3 points to 9.7%

•ZYN nicotine pouch shipment volume in the U.S. of 116.3 million cans, representing growth of 78.2% versus fourth-quarter 2022 Swedish Match shipments of 65.3 million cans

•Combustible tobacco net revenue growth of 5.3% on both a reported and organic basis, driven by pricing of 9.9%

Full-Year

•Third consecutive year of volume growth driven by HTUs

•Adjusted in-market sales volume for HTUs, which excludes the net unfavorable impact of estimated distributor and wholesaler inventory movements, up by an estimated 14.8%

•Total IQOS users at year-end estimated at approximately 28.6 million (up by 3.7 million versus December 2022), of which approximately 20.8 million had switched to IQOS and stopped smoking

•Market share for HTUs in IQOS markets up by 1.2 points to 9.1%

•ZYN nicotine pouch shipment volume in the U.S. of 384.8 million cans, representing growth of 62.0% versus 2022 Swedish Match shipments of 237.5 million cans

•Increased regular quarterly dividend in September by 2.4% to $1.30 per share, or an annualized rate of $5.20 per share

•Combustible tobacco net revenue growth of 3.5%; growth of 5.5% on an organic basis, driven by pricing of 8.9%

•Organic growth in adjusted operating income driven by the performance of smoke-free products

"Our business delivered a strong finish to 2023 and we achieved a number of remarkable milestones on our path to becoming a smoke-free company," said Jacek Olczak, Chief Executive Officer.

"We are pleased that smoke-free products reached nearly 40% of our total net revenues and over 40% of our gross profit in the fourth quarter. This was led by the continued growth of IQOS, which has now surpassed Marlboro in terms of net revenues, confirming its position as the leading premium nicotine brand less than 10 years from launch. The fourth quarter also marked the first anniversary of our combination with Swedish Match, which delivered very strong results in 2023 driven by the stellar U.S. performance of ZYN."

"We are entering 2024 with strong momentum, and we expect it will be another year of excellent performance underpinned by an acceleration in organic smoke-free net revenue and profit growth."

2023 FULL-YEAR SUMMARY

Adjusted net revenues increased by 7.8% on an organic basis, driven by total cigarette and HTU shipment volume growth of 1.0% (reflecting growth of 14.7% for HTUs and a decline of 1.4% for cigarettes), favorable category mix of smoke-free products and positive pricing.

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Adjusted operating income increased by 3.7% on an organic basis with a substantial acceleration in the second half of the year, as supply chain disruptions and ILUMA-related factors continued to dissipate, coupled with an accelerating contribution from smoke-free products.

Adjusted diluted EPS of $6.01 increased by 11.0%, excluding currency, driven primarily by the organic growth in adjusted operating income, as well as the results of the Swedish Match business and its strong performance led by ZYN in the U.S. The $0.20 unfavorable currency variance in the fourth quarter includes a $0.09 balance-sheet-related currency impact in Argentina. While the company’s affiliate in Argentina remains subject to highly inflationary accounting treatment, with the U.S. dollar treated as the functional currency, the impact reflects the depreciation of Argentine peso-denominated monetary net assets, which impacts earnings on a periodic basis when translated to U.S. dollars and are also subject to capital controls.


	Full-Year
		2023	2022	Currency	Var. excl. Currency
Reported Diluted EPS		$ 5.02	$ 5.81	$ (0.63)	(2.8)	%
Asset impairment and exit costs		0.06	—
Termination of distribution arrangement in the Middle East		0.04	—
Income tax impact associated with Swedish Match AB financing		(0.11)	(0.13)
Swedish Match AB acquisition accounting related item		0.01	0.06
Impairment of goodwill and other intangibles		0.44	0.06
Amortization of intangibles		0.25	0.09
Charges related to the war in Ukraine		0.03	0.08
Costs associated with Swedish Match AB offer		—	0.06
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 (1)		0.11	(0.03)
Adjusted Diluted EPS		$ 6.01	$ 5.98	$ (0.63)	11.0	%

(1) 2023 Tax items relate to the unilateral suspension of certain Russian double tax treaties by the Russian government

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2024 FULL-YEAR FORECAST


	Full-Year
	2024 Forecast			2023	Growth

Reported Diluted EPS	$5.90	-	$6.02	$ 5.02


Adjustments:
Asset impairment and exit costs	—			0.06
Termination of distribution arrangement in the Middle East	—			0.04
Income tax impact associated with Swedish Match AB financing	—			(0.11)
Amortization of intangibles	0.42			0.25
Impairment of goodwill and other intangibles	—			0.44

Charges related to the war in Ukraine	—			0.03
Swedish Match AB acquisition accounting related item	—			0.01
Termination of agreement with Foundation for a Smoke-Free World	—			0.07
South Korea indirect tax charge	—			0.11
Fair value adj. for equity security investments	—			(0.02)
Tax items (1)	—			0.11
Total Adjustments	0.42			0.99


Adjusted Diluted EPS	$6.32	-	$6.44	$ 6.01
Less: Currency	(0.11)
Adjusted Diluted EPS, excluding currency	$6.43	-	$6.55	$ 6.01	7.0%	-	9.0%

(1) 2023 Tax items relate to the unilateral suspension of certain Russian double tax treaties by the Russian government

Reported diluted EPS is forecast to be in a range of $5.90 to $6.02, at prevailing exchange rates, versus reported diluted EPS of $5.02 in 2023. Excluding a total 2024 adjustment of $0.42 per share and an adverse currency impact of $0.11, at prevailing exchange rates, this forecast represents a projected increase of 7.0% to 9.0% versus adjusted diluted EPS of $6.01 in 2023, as outlined in the above table.

2024 Full-Year Forecast Assumptions

This forecast assumes:

•An estimated total international industry volume decline for cigarettes and HTUs, excluding China and the U.S., of -2% to flat;

•Total cigarette, HTU and oral smoke-free product shipment volume growth for PMI of flat to +1% driven by smoke-free products;

•14% to 16% adjusted in-market sales volume growth for HTUs, including an approximate 2 billion units adverse impact from consumer adjustment to the EU characterizing flavor ban, and essentially no growth in Russia, resulting in HTU shipment volumes of more than 140 billion units;

•Nicotine pouch shipment volume in the U.S. of approximately 520 million cans;

•Net revenue growth of 6.5% to 8% on an organic basis;

•Organic operating income growth of 8% to 9.5%;

•An acceleration in organic smoke-free net revenue and gross profit growth compared to 2023;

•Broadly unchanged net revenue and adjusted operating loss in Wellness and Healthcare segment;

•No earnings impact from any potential favorable court ruling related to the legality of a supplemental tax surcharge on HTUs in Germany, which went into effect in 2022 (see PMI's first-quarter 2023 press release

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from April 20, 2023, for additional detail). The company currently expects to have greater visibility on the outcome in the first quarter of 2024;

•Full-year amortization of acquired intangibles of $0.42 per share, which includes an estimate of amortization of IQOS commercialization rights in the U.S. following the closing of the agreement to end our commercial relationship with Altria Group, Inc. covering IQOS in the U.S. effective May 1, 2024. We currently estimate that the incremental increase in amortization expense in 2024, as a result of this transaction, will be approximately $370 million on a pre-tax basis for the remaining 8 months of the year. For full year 2025 through 2028, we currently estimate an annual impact of approximately $555 million on a pre-tax basis;

•Net financing costs of approximately $1.3 to $1.4 billion;

•An effective tax rate, excluding discrete tax events, of approximately 21% to 22%;

•Operating cash flow of $10 to $11 billion at prevailing exchange rates, subject to year-end working capital requirements;

•Capital expenditures of approximately $1.2 billion, partly reflecting investments in ZYN capacity in the U.S.;

•Net debt to adjusted EBITDA ratio improvement of 0.3x to 0.5x at prevailing exchange rates as we continue to target a ratio of around 2x by the end of 2026;

•No share repurchases in 2024; and

•A strong start to 2024 with first quarter adjusted diluted EPS of $1.37 to $1.42, including an estimated adverse currency impact of 10 cents at prevailing exchange rates.

Factors described in the Forward-Looking and Cautionary Statements section of this release represent continuing risks to these projections.

New Segment Structure

Following the combination and the progress in 2023 toward integration of the Swedish Match business into the existing PMI regional segment structure, PMI will update its segment reporting by including Swedish Match results in the four existing geographical regions. As of the first quarter of 2024, PMI will report on this basis. The company plans to disclose select historical financial information for the 2021 to 2023 period reflecting the above mentioned change in the coming weeks.

Global Patent Settlement

On February 2, 2024 PMI announced that it has reached a global settlement with British American Tobacco p.l.c. that resolves all ongoing patent infringement litigation between the parties related to heated tobacco and vapor products. Please see the Form 8-K dated February 2, 2024 for additional detail.

Conference Call

A conference call hosted by Jacek Olczak, Chief Executive Officer, and Emmanuel Babeau, Chief Financial Officer, will be webcast at 9:00 a.m., Eastern Time, on February 8, 2024. Access the call at www.pmi.com/2023Q4earnings.

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TOTAL MARKET, CONSOLIDATED SHIPMENT VOLUME & MARKET SHARE

Total Market Volume

Full-Year

Estimated international industry volume (excluding China and the U.S.) for cigarettes and HTUs of 2.6 trillion, decreased by 1.6%, reflecting declines in the SSEA, CIS & MEA Region, the Europe Region and the Americas Region, partly offset by an increase in the EA, AU & PMI DF Region, as described in the Regional sections.

Consolidated Shipment Volume


PMI Cigarettes and HTUs	Fourth-Quarter				Full-Year
(million units)	2023	2022	Change		2023	2022	Change





Cigarettes	151,094	154,026	(1.9)	%	612,949	621,908	(1.4)	%






Heated Tobacco Units	33,972	32,021	6.1	%	125,263	109,169	14.7	%






Total Cigarettes and HTUs	185,066	186,047	(0.5)	%	738,212	731,077	1.0	%


PMI Oral Products (1)	Fourth-Quarter				Full-Year
(million cans)	2023	2022	Change		2023	2022	Change
Nicotine Pouches	125.7	39.8	+100%		421.1	42.5	+100%
Snus	61.8	42.8	44.4	%	240.4	54.8	+100%
Moist Snuff	31.2	16.0	95.5	%	133.7	16.0	+100%
Other	0.8	—	—	%	4.2	—	—	%
Total Oral Products	219.6	98.6	+100%		799.3	113.2	+100%
(1) Excluding snuff, snuff leaf and U.S. chew
Note: Sum may not foot due to roundings.

Fourth-Quarter

PMI's total cigarette and HTU shipment volume decreased by 0.5%, reflecting an 6.1% increase in HTU shipments across all regions except EA, AU & PMI DF Region, partly offset by a 1.9% decline in cigarette shipments with declines in the EA, AU & PMI DF Region, the Americas Region, as well as the SSEA, CIS & MEA Region, and broadly stable cigarette shipments in the Europe Region. Cigarette shipment volume for Marlboro decreased by 0.8% to 60.2 billion units, due primarily to the Philippines.

PMI’s total oral product shipment volume increased by over 100%, driven by the Swedish Match acquisition. On a pro forma basis (including Swedish Match in all periods), it increased by 23.4%, primarily reflecting growth in nicotine pouches (particularly in the U.S.), partly offset by a decline for snus (mainly in Scandinavia). Swedish Match's total oral product shipment volume increased by 21.9% versus its corresponding shipments in 2022.

Adjusted in-market sales for HTUs increased by 13.9%, including growth in Europe of 13.1%, Japan of 13.4%. Excluding Russia and Ukraine, adjusted in-market sales for HTUs increased by 15.0%. The net unfavorable impact of estimated distributor inventory movements for HTUs was driven primarily by Japan.

Full-Year

PMI's total cigarette and HTU shipment volume increased by 1.0%, reflecting an 14.7% increase in HTU shipments across all regions, partly offset by a 1.4% decline in cigarette shipments due to declines in the Europe, EA, AU & PMI DF, and Americas Regions, partly offset by the SSEA, CIS & MEA Region. Cigarette shipment volume for Marlboro decreased by 1.9% to 240.0 billion units, due primarily to the Philippines.

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PMI’s total oral product shipment volume increased by over 100%, driven by the Swedish Match acquisition. On a pro forma basis (including Swedish Match in all periods), it increased by 16.8%, primarily reflecting the same factors as in the quarter. Swedish Match's total oral product shipment volume increased by 17.1% versus its corresponding shipments in 2022.

Adjusted in-market sales for HTUs increased by 14.8% (in line with full-year HTUs shipment volume growth of 14.7%), including growth in Europe of 17.6% and Japan of 14.5%. Excluding Russia and Ukraine, adjusted in market sales for HTUs increased by 17.1%.

International Share of Market - Cigarettes and HTUs


	Fourth-Quarter					Full Year
	2023		2022		Change (pp)	2023		2022		Change (pp)

Total International Market Share (1)	28.6	%	28.1	%	0.5	28.3	%	27.7	%	0.6
Cigarettes	23.7	%	23.7	%	—	23.7	%	23.6	%	0.1
HTU	4.9	%	4.3	%	0.6	4.7	%	4.1	%	0.6

Cigarette over Cigarette Market Share (2)	25.3	%	25.2	%	0.1	25.2	%	25.0	%	0.2
(1) Defined as PMI's cigarette and heated tobacco unit in-market sales volume as a percentage of total industry cigarette and heated tobacco unit sales volume, excluding China and the U.S., including cigarillos in Japan
(2) Defined as PMI's cigarette in-market sales volume as a percentage of total industry cigarette sales volume, excluding China and the U.S., including cigarillos in Japan
Note: Sum of share of market by product categories might not foot to total due to roundings.

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CONSOLIDATED FINANCIAL SUMMARY

Fourth-Quarter


Financial Summary - Quarters Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)




Net Revenues	$ 9,047		$ 8,152		11.0	%	8.3	%	895	(78)	299	631	50	(7)

Cost of Sales (1)	(3,462)		(3,211)		(7.8)	%	(3.8)	%	(251)	(39)	(90)	—	(103)	(19)
Marketing, Administration and Research Costs (2)	(2,696)		(2,017)		(33.7)	%	(19.0)	%	(679)	(184)	(112)	—	—	(383)

Operating Income	$ 2,889		$ 2,924		(1.2)	%	5.8	%	(35)	(301)	97	631	(53)	(409)



Amortization of Intangibles	(129)		(58)		-(100)%		(51.7)	%	(71)	—	(41)	—	—	(30)
Charges related to the war in Ukraine	(34)		(23)		(47.8)	%	(47.8)	%	(11)	—	—	—	—	(11)
Costs associated with Swedish Match AB offer	—		154		-(100)%		-(100)%		(154)	—	—	—	—	(154)
Swedish Match AB acquisition accounting related items	—		(125)		+100%		+100%		125	—	—	—	—	125


Adjusted Operating Income	$ 3,052		$ 2,976		2.6	%	8.0	%	76	(301)	138	631	(53)	(339)

Adjusted Operating Income Margin	33.7	%	36.5	%	(2.8)pp		(0.1)	pp
(1) Includes $18 million in 2023 and $157 million in 2022 related to the special items below.
(2) Includes $145 million in 2023 and $(105) million in 2022 related to the special items below.

Net revenues increased by 8.3% on an organic basis, mainly reflecting: a favorable pricing variance, primarily driven by higher combustible tobacco pricing; and favorable volume/mix, mainly driven by higher HTU volume, partially offset by lower cigarette volume.

Adjusted operating income increased by 8.0% on an organic basis, mainly reflecting: the favorable pricing variance; partially offset by higher marketing, administration and research costs (primarily due to inflationary impacts, notably related to wages) as well as higher manufacturing costs. Slightly unfavorable volume/mix, mainly driven by lower cigarette volume, was partly offset by higher HTU volume.

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Full-Year


Financial Summary - Years Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 35,174		$ 31,762		10.7	%	7.6	%	3,412	(1,112)	2,113	1,940	664	(193)
Termination of distribution arrangement in the Middle East	(80)		—		—	%	—	%	(80)	—	—	—	—	(80)
Adjusted Net Revenues	$ 35,254		$ 31,762		11.0	%	7.8	%	3,492	(1,112)	2,113	1,940	664	(113)

Net Revenues	$ 35,174		$ 31,762		10.7	%	7.6	%	3,412	(1,112)	2,113	1,940	664	(193)

Cost of Sales (1)	(12,893)		(11,402)		(13.1)	%	(8.4)	%	(1,491)	167	(695)	—	(755)	(208)
Marketing, Administration and Research Costs (2)	(10,060)		(8,114)		(24.0)	%	(13.5)	%	(1,946)	(128)	(724)	—	—	(1,094)
Impairment of Goodwill	(665)		—		—	%	—	%	(665)	—	—	—	—	(665)

Operating Income	$ 11,556		$ 12,246		(5.6)	%	(2.5)	%	(690)	(1,073)	694	1,940	(91)	(2,160)
Asset Impairment & Exit Costs	(109)		—		—	%	—	%	(109)	—	—	—	—	(109)
Termination of distribution arrangement in the Middle East (3)	(80)		—		—	%	—	%	(80)	—	—	—	—	(80)
Impairment of Goodwill and Other Intangibles (4)	(680)		(112)		-(100)%		-(100)%		(568)	—	—	—	—	(568)
Amortization of Intangibles	(497)		(159)		-(100)%		(14.5)	%	(338)	—	(315)	—	—	(23)
Charges related to the war in Ukraine	(53)		(151)		64.9	%	64.9	%	98	—	—	—	—	98
Costs associated with Swedish Match AB offer	—		(115)		+100%		+100%		115	—	—	—	—	115
Swedish Match AB acquisition accounting related items	(18)		(125)		85.6	%	+100%		107	—	(18)	—	—	125
South Korea Indirect Tax Charge	(204)		—		—	%	—	%	(204)	—	—	—	—	(204)
Termination of agreement with Foundation for a Smoke-Free World	(140)		—		—	%	—	%	(140)	—	—	—	—	(140)
Adjusted Operating Income	$ 13,337		$ 12,908		3.3	%	3.7	%	429	(1,073)	1,027	1,940	(91)	(1,374)

Adjusted Operating Income Margin	37.8	%	40.6	%	(2.8)pp		(1.5)pp
(1) Includes $90 million in 2023 and $356 million in 2022 related to the special items below.
(2) Includes $946 million in 2023 and $306 million in 2022 related to the special items below.
(3) Included in Net Revenues above.
(4) Includes $665 million impairment of goodwill.

Adjusted net revenues increased by 7.8% on an organic basis, mainly reflecting: a favorable pricing variance, primarily driven by higher combustible tobacco pricing, and favorable volume/mix, mainly driven by higher HTU

- 9 -

volume, partially offset by lower cigarette volume and lower fees for certain distribution rights billed to customers in certain markets.

Cost of sales, excluding currency and acquisitions, increased by 8.4%, driven by higher manufacturing costs (primarily due to inflationary impacts, notably related to direct materials, tobacco leaf and energy, partly offset by productivity) and unfavorable volume/mix, mainly reflecting unfavorable category mix (notably due to lower cigarette volume and higher HTU volume), as well as the technical impact of third-party manufacturing in Indonesia. This increase was partially offset by the Swedish Match AB acquisition accounting related item in 2022, the impairment charge of other intangible assets in 2022 and lower charges related to the War in Ukraine.

Adjusted operating income increased by 3.7% on an organic basis, mainly reflecting: the favorable pricing variance; partly offset by higher marketing, administration and research costs (primarily due to inflationary impacts, notably related to wages, and lower commercial investments in the prior year period); higher manufacturing costs (as explained for cost of sales); and the impact of lower fees for certain distribution rights, as noted for net revenues.

EUROPE REGION

Total Market, PMI Shipment & Market Share Commentaries


Europe Key Data	Fourth-Quarter						Full-Year
					Change						Change
	2023		2022		% / pp		2023		2022		% / pp


PMI Shipment Volume (million units)
Cigarettes	39,330		39,339		—	%	165,593		170,658		(3.0)	%
Heated Tobacco Units	14,310		12,921		10.7	%	49,269		45,417		8.5	%
Total Europe	53,640		52,260		2.6	%	214,862		216,075		(0.6)	%

PMI Market Share
Cigarettes	30.3	%	30.6	%	(0.3)		30.3	%	31.1	%	(0.8)
Heated Tobacco Units	10.0	%	8.9	%	1.1		9.1	%	7.8	%	1.3
Total Europe	40.3	%	39.5	%	0.8		39.4	%	39.0	%	0.4
Note: Sum may not foot due to roundings.

Fourth-Quarter

The estimated total market for cigarettes and HTUs in the Region decreased by 0.9% to 130.8 billion units, reflecting a 2.6% decline for cigarettes, partly offset by a 13.2% increase for HTUs. The decrease in the estimated total market was predominantly due to the UK (down by 16.7%), the Czech Republic (down by 14.7%) and France (down by 7.3%), partly offset by Italy (up by 2.5%).

PMI's total cigarette and HTU shipment volume in the Region increased by 2.6% to 53.6 billion units, mainly due to Poland (up by 10.6%), Italy (up by 4.0%) and Ukraine (up by 14.9%), partly offset by France (down by 13.7%; or by 8.3% excluding the net unfavorable impact of estimated distributor inventory movements) and Germany (down by 6.2%).

PMI's estimated HTU adjusted in-market sales volume in the Region increased by 13.1% in the quarter, reflecting the strong continued growth momentum for IQOS (including in Germany, where adjusted in-market sales volume for HTUs increased by 19.5%).

- 10 -

PMI's HTU share of the total cigarette and HTU market in the Region increased by 1.1 points, or by 1.2 points on an adjusted basis.

Full-Year

The estimated total market for cigarettes and HTUs in the Region decreased by 1.3% to 542.3 billion units, reflecting a 3.0% decline for cigarettes, partly offset by a 15.6% increase for HTUs. The decrease in the estimated total market was predominantly due to the UK (down by 15.4%), France (down by 8.2%), Germany (down by 1.8%) and Spain (down by 2.4%), partly offset by Poland (up by 1.8%).

PMI's total cigarette and HTU shipment volume in the Region decreased by 0.6% to 214.9 billion units, mainly due to Germany (down by 6.0%), Italy (down by 2.8%; or up by 0.4% excluding the net unfavorable impact of estimated distributor inventory movements) and France (down by 7.3%), partly offset by Poland (up by 9.4%).

PMI's estimated HTU adjusted in-market sales volume in the Region increased by 17.6%, including growth in Germany and Italy of 29.7% and 16.6%, respectively.

PMI's HTU share of the total cigarette and HTU market in the Region increased by 1.3 points, or by 1.5 points on an adjusted basis.

Financial Summary

Fourth-Quarter


Financial Summary - Quarters Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 3,614		$ 3,064		18.0	%	9.6	%	550	255	—	187	108	—

Operating Income	$ 1,566		$ 1,355		15.6	%	6.6	%	211	122	—	187	146	(244)
Adjustments (1)	(44)		38		-(100)%		-(100)%		(82)	—	—	—	—	(82)
Adjusted Operating Income	$ 1,610		$ 1,317		22.2	%	13.0	%	293	122	—	187	146	(162)


Adjusted Operating Income Margin	44.5	%	43.0	%	1.5pp		1.3pp

(1) See Schedule 8 in Exhibit 99.2 to the Form 8-K dated February 8, 2024, for additional detail.

Net revenues increased by 9.6% on an organic basis, reflecting: a favorable pricing variance, mainly driven by higher combustible tobacco pricing; and favorable volume/mix, primarily driven by higher HTU volume and favorable mix, partly offset by lower cigarette volume, as well as unfavorable cigarette mix.

Adjusted operating income increased by 13.0% on an organic basis, primarily reflecting: the favorable pricing variance; favorable volume/mix, mainly reflecting higher HTU volume, partly offset by lower cigarette volume, as well as unfavorable cigarette mix; partly offset by higher marketing, administration and research costs (primarily due to inflationary impacts) as well as higher manufacturing costs.

- 11 -

Full-Year


Financial Summary - Years Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 13,598		$ 12,869		5.7	%	3.7	%	729	249	—	540	(60)	—

Operating Income	$ 6,012		$ 5,802		3.6	%	0.4	%	210	186	—	540	(79)	(437)
Adjustments (1)	(202)		(242)		16.5	%	16.5	%	40	—	—	—	—	40
Adjusted Operating Income	$ 6,214		$ 6,044		2.8	%	(0.3)	%	170	186	—	540	(79)	(477)


Adjusted Operating Income Margin	45.7	%	47.0	%	(1.3)pp		(1.8)pp

(1) See Schedule 9 in Exhibit 99.2 to the Form 8-K dated February 8, 2024, for additional detail.

Net revenues increased by 3.7% on an organic basis, reflecting: a favorable pricing variance, mainly driven by higher combustible tobacco pricing; partially offset by unfavorable volume/mix, mainly due to lower cigarette volume, as well as unfavorable cigarette mix, partly offset by higher HTU volume.

Adjusted operating income decreased by 0.3% on an organic basis, primarily reflecting: higher marketing, administration and research costs (mainly due to inflationary impacts and lower commercial investments in the prior year period); higher manufacturing costs (primarily due to inflationary impacts); and unfavorable volume/mix, mainly due to the same factors as for net revenues; partly offset by the favorable pricing variance.

SSEA, CIS & MEA REGION

Total Market, PMI Shipment & Market Share Commentaries


PMI Shipment Volume	Fourth-Quarter				Full-Year
(million units)	2023	2022	Change		2023	2022	Change
Cigarettes	83,009	83,920	(1.1)	%	333,353	331,026	0.7	%
Heated Tobacco Units	7,502	6,122	22.5	%	24,890	22,607	10.1	%
Total SSEA, CIS & MEA	90,511	90,042	0.5	%	358,243	353,633	1.3	%

Fourth-Quarter

The estimated total market for cigarettes and HTUs in the Region decreased by approximately 1% to 389.2 billion units, due to a decline for cigarettes. The decrease in the estimated total market was mainly due to Egypt (down by 21.8%) and Pakistan (down by 25.1%), partly offset by Turkey (up by 13.3%).

PMI's total cigarette and HTU shipment volume in the Region increased by 0.5% to 90.5 billion units, mainly driven by Turkey (up by 19.0%), partly offset by the Philippines (down by 25.5%). PMI's estimated HTU adjusted in-market sales volume increased by 13.0%, with 22.5% HTU shipment volume growth, primarily due to comparison effects, notably in Russia.

- 12 -

Full-Year

The estimated total market for cigarettes and HTUs in the Region decreased by approximately 2% to 1,528.6 billion units, due to a decline for cigarettes. The decrease in the estimated total market was predominantly due to Egypt (down by 20.9%) and Pakistan (down by 35.1%), partly offset by Turkey (up by 16.9%).

Our Regional market share increased by 0.8 points to 23.4%.

PMI's total cigarette and HTU shipment volume in the Region increased by 1.3% to 358.2 billion units, mainly driven by Turkey (up by 23.0%), partly offset by the Philippines (down by 26.2%). PMI's estimated HTU adjusted in-market sales volume increased by 8.2% including limited growth in Russia.

Financial Summary

Fourth-Quarter


Financial Summary - Quarters Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)




Net Revenues	$ 2,707		$ 2,686		0.8	%	13.0	%	21	(327)	—	257	97	(6)

Operating Income	$ 676		$ 855		(20.9)	%	3.0	%	(179)	(205)	—	257	(49)	(182)
Adjustments (1)	(5)		38		-(100)%		-(100)%		(43)	—	—	—	—	(43)
Adjusted Operating Income	$ 681		$ 817		(16.6)	%	8.4	%	(136)	(205)	—	257	(49)	(139)

Adjusted Operating Income Margin	25.2	%	30.4	%	(5.2)pp		(1.2)pp


(1) See Schedule 8 in Exhibit 99.2 to the Form 8-K dated February 8, 2024, for additional detail.

Net revenues increased by 13.0% on an organic basis, primarily reflecting: a favorable pricing variance, mainly driven by higher combustible tobacco pricing; and favorable volume/mix, driven by higher HTU volume and favorable cigarette mix, partly offset by lower cigarette volume.

Adjusted operating income increased by 8.4% on an organic basis, primarily reflecting: the favorable pricing variance, partly offset by higher marketing, administration and research costs; higher manufacturing costs (primarily due to inflationary impacts); and unfavorable volume/mix, mainly due to an unfavorable cigarette volume impact.

- 13 -

Full-Year


Financial Summary - Years Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 10,629		$ 10,467		1.5	%	11.7	%	162	(1,060)	—	1,008	400	(186)
Adjustment (1)	(80)		—		—	%	—	%	(80)	—	—	—	—	(80)
Adjusted Net Revenues	$ 10,709		$ 10,467		2.3	%	12.4	%	242	(1,060)	—	1,008	400	(106)

Net Revenues	$ 10,629		$ 10,467		1.5	%	11.7	%	162	(1,060)	—	1,008	400	(186)

Operating Income	$ 3,047		$ 3,864		(21.1)	%	(4.2)	%	(817)	(653)	—	1,008	(237)	(935)
Adjustments (2)	(178)		(56)		-(100)%		-(100)%		(122)	—	—	—	—	(122)
Adjusted Operating Income	$ 3,225		$ 3,920		(17.7)	%	(1.1)	%	(695)	(653)	—	1,008	(237)	(813)

Adjusted Operating Income Margin	30.1	%	37.5	%	(7.4)pp		(4.5)pp

(1) Termination of distribution arrangement in the Middle East
(2) See Schedule 9 in Exhibit 99.2 to the Form 8-K dated February 8, 2024, for additional detail.

Adjusted net revenues increased by 12.4% on an organic basis, primarily reflecting: a favorable pricing variance, mainly driven by higher combustible tobacco pricing, with HTU pricing also higher; favorable volume/mix, primarily driven by favorable cigarette mix, as well as higher volume for HTUs, partly offset by an unfavorable cigarette volume impact; and partially offset by lower fees for certain distribution rights billed to customers in certain markets, shown in "Cost/Other."

Adjusted operating income decreased by 1.1% on an organic basis, primarily reflecting: higher marketing, administration and research costs; higher manufacturing costs (primarily due to inflationary impacts); unfavorable volume/mix, mainly due to an unfavorable cigarette volume impact and unfavorable cigarette mix, partly offset by higher HTU volume; and the impact of lower fees for certain distribution rights, as noted for net

revenues; partially offset by the favorable pricing variance.

EA, AU AND PMI DF REGION

Total Market, PMI Shipment & Market Share Commentaries


PMI Shipment Volume	Fourth-Quarter				Full-Year
(million units)	2023	2022	Change		2023	2022	Change
Cigarettes	11,287	12,335	(8.5)	%	50,689	54,251	(6.6)	%
Heated Tobacco Units	11,958	12,785	(6.5)	%	50,519	40,613	24.4	%
Total EA, AU & PMI DF	23,245	25,120	(7.5)	%	101,208	94,864	6.7	%

- 14 -

Fourth-Quarter

The estimated total market for cigarettes and HTUs in the Region, excluding China, decreased by around 1% to 80.7 billion units, with growth for HTUs more than offset by a decline for cigarettes. The decrease in the estimated total market was driven by Taiwan (down by 18.1%), partly offset by International Duty Free (up by 26.3%).

PMI's total cigarette and HTU shipment volume in the Region decreased by 7.5% to 23.2 billion units, driven by Japan (down by 13.3%).

PMI's estimated HTU adjusted in-market sales volume in the Region increased by 15.4% in the quarter, including growth in Japan of 13.4%, primarily due to comparison effects.

Full-Year

The estimated total market for cigarettes and HTUs in the Region, excluding China, increased by 1% to 319.8 billion units, reflecting growth for HTUs, partly offset by a decline for cigarettes. The increase in the estimated total market was mainly driven by International Duty Free (up by 35.7%), partly offset by Taiwan (down by 7.4%) and Australia (down by 19.4%).

Our Regional market share increased by 1.3 points to 30.0%.

PMI's total cigarette and HTU shipment volume in the Region increased by 6.7% to 101.2 billion units, mainly driven by Japan (up by 9.7%) and International Duty Free (up by 14.5%).

PMI's estimated HTU adjusted in-market sales volume in the Region increased by 15.8%, including growth in Japan of 14.5%.

Financial Summary

Fourth-Quarter


Financial Summary - Quarters Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 1,430		$ 1,478		(3.2)	%	(0.1)	%	(48)	(46)	—	133	(135)	—

Operating Income	$ 561		$ 678		(17.3)	%	(5.2)	%	(117)	(82)	—	133	(133)	(35)
Adjustments (1)	—		31		-(100)%		-(100)%		(31)	—	—	—	—	(31)
Adjusted Operating Income	$ 561		$ 647		(13.3)	%	(0.6)	%	(86)	(82)	—	133	(133)	(4)

Adjusted Operating Income Margin	39.2	%	43.8	%	(4.6)pp		(0.2)pp

(1) See Schedule 8 in Exhibit 99.2 to the Form 8-K dated February 8, 2024, for additional detail.

Net revenues decreased by 0.1% on an organic basis, reflecting: unfavorable volume/mix, mainly driven by lower cigarette and HTU volume; largely offset by favorable pricing variance, driven by higher combustible tobacco pricing.

- 15 -

Adjusted operating income decreased by 0.6% on an organic basis driven by the same factors as for net revenues.

Full-Year


Financial Summary - Years Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 6,201		$ 5,936		4.5	%	11.2	%	265	(400)	—	206	459	—

Operating Income	$ 2,481		$ 2,424		2.4	%	18.6	%	57	(395)	—	206	326	(80)
Adjustments (1)	(254)		(28)		-(100)%		-(100)%		(226)	—	—	—	—	(226)
Adjusted Operating Income	$ 2,735		$ 2,452		11.5	%	27.7	%	283	(395)	—	206	326	146

Adjusted Operating Income Margin	44.1	%	41.3	%	2.8pp		6.1pp

(1) See Schedule 9 in Exhibit 99.2 to the Form 8-K dated February 8, 2024, for additional detail.

Net revenues increased by 11.2% on an organic basis, reflecting: favorable volume/mix, mainly driven by higher HTU volume, partly offset by lower cigarette volume and unfavorable smoke-free product mix (for HTUs and devices); and a favorable pricing variance, driven by higher combustible tobacco and device pricing, partly offset by lower HTU (net) pricing (primarily related to Japan).

Adjusted operating income increased by 27.7% on an organic basis, mainly reflecting favorable volume/mix, primarily driven by higher HTU volume, partly offset by lower cigarette volume and unfavorable HTU mix; the favorable pricing variance; and lower supply chain costs (primarily related to Japan).

AMERICAS REGION

Total Market, PMI Shipment & Market Share Commentaries


PMI Shipment Volume	Fourth-Quarter				Full-Year
(million units)	2023	2022	Change		2023	2022	Change
Cigarettes	17,468	18,432	(5.2)	%	63,314	65,973	(4.0)	%
Heated Tobacco Units	202	193	4.7	%	585	532	10.0	%
Total Americas	17,670	18,625	(5.1)	%	63,899	66,505	(3.9)	%

- 16 -

Fourth-Quarter

The estimated total market for cigarettes and HTUs in the Region, excluding the U.S., decreased by around 2% to 49.9 billion units, primarily reflecting a decline for cigarettes. The decrease in the estimated total market was mainly due to Mexico (down by 8.7%), Argentina (down by 8.1%) and Canada (down by 11.2%), partly offset by Brazil (up by 11.7%).

PMI's total cigarette and HTU shipment volume in the Region decreased by 5.1% to 17.7 billion units, mainly due to Mexico (down by 11.6%) and Argentina (down by 10.7%), partly offset by Brazil (up by 13.3%).

Full-Year

The estimated total market for cigarettes and HTUs in the Region, excluding the U.S., decreased by around 1% to 189.2 billion units, driven by a decline for cigarettes. The decrease in the estimated total market was mainly due to Mexico (down by 6.8%), Canada (down by 12.6%) and Argentina (down by 5.0%), partly offset by Brazil (up by 10.1%).

Our Regional market share, excluding the U.S., decreased by 1.1 points to 33.7%.

PMI's total cigarette and HTU shipment volume in the Region decreased by 3.9% to 63.9 billion units, mainly due to Mexico (down by 9.8%) and Argentina (down by 7.9%), partly offset by Brazil (up by 12.8%).

Financial Summary

Fourth-Quarter


Financial Summary - Quarters Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 545		$ 536		1.7	%	(4.9)	%	9	35	—	34	(62)	2

Operating Income	$ (79)		$ 100		-(100)%		(56.0)	%	(179)	(123)	—	34	(55)	(35)
Adjustments (1)	(1)		5		-(100)%		-(100)%		(6)	—	—	—	—	(6)
Adjusted Operating Income	$ (78)		$ 95		-(100)%		(52.6)	%	(173)	(123)	—	34	(55)	(29)

Adjusted Operating Income Margin	(14.3)	%	17.7	%	(32.0)pp		(8.9)pp

(1) See Schedule 8 in Exhibit 99.2 to the Form 8-K dated February 8, 2024, for additional detail.

Net revenues decreased by 4.9% on an organic basis, primarily reflecting: unfavorable volume/mix, mainly due to lower cigarette volume and unfavorable cigarette mix; partly offset by a favorable pricing variance, driven by higher combustible tobacco pricing.

Adjusted operating income decreased by 52.6% on an organic basis, mainly reflecting: unfavorable volume/mix, mainly due to the same factors as for net revenues; higher marketing and administration costs (including incremental investments in the U.S. in preparation for smoke-free product commercialization); and higher manufacturing costs; partly offset by the favorable pricing variance.

- 17 -

Full-Year


Financial Summary - Years Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 1,944		$ 1,903		2.2	%	(2.9)	%	41	96	—	128	(177)	(6)

Operating Income	$ 62		$ 436		(85.8)	%	(40.6)	%	(374)	(197)	—	128	(139)	(166)
Adjustments (1)	(19)		(14)		(35.7)	%	(35.7)	%	(5)	—	—	—	—	(5)
Adjusted Operating Income	$ 81		$ 450		(82.0)	%	(38.2)	%	(369)	(197)	—	128	(139)	(161)

Adjusted Operating Income Margin	4.2	%	23.6	%	(19.4)pp		(8.6)pp

(1) See Schedule 9 in Exhibit 99.2 to the Form 8-K dated February 8, 2024, for additional detail.

Net revenues decreased by 2.9% on an organic basis, primarily reflecting: unfavorable volume/mix, mainly due to lower cigarette volume and unfavorable cigarette mix; partly offset by a favorable pricing variance, driven by higher combustible tobacco pricing.

Adjusted operating income decreased by 38.2% on an organic basis, mainly reflecting: higher marketing, administration and research costs (notably reflecting the same factors as in the quarter); unfavorable volume/mix, mainly due to the same factors as for net revenues; partly offset by the favorable pricing variance.

SWEDISH MATCH

PMI Shipment Commentary


Swedish Match Oral Product Shipment Volume (1)	Fourth-Quarter				Full-Year
(million cans)	2023	2022	Change		2023	2022	Change
Nicotine Pouches
U.S.	116.3	34.5	+100%		384.8	34.5	+100%
Scandinavia	7.1	3.7	90.9	%	28.7	3.7	+100%
Other	1.0	1.2	(15.1)	%	4.6	1.2	+100%
Total Nicotine Pouches	124.4	39.4	+100%		418.2	39.4	+100%

Snus
Scandinavia	55.5	39.3	41.4	%	218.2	39.3	+100%
Other	1.6	1.1	41.4	%	6.8	1.1	+100%
Total Snus	57.1	40.4	41.4	%	224.9	40.4	+100%


Moist Snuff	31.2	16.0	95.5	%	133.7	16.0	+100%

Other	0.8	—	—	%	4.2	—	—	%

Total Oral Products	213.6	95.8	+100%		781.0	95.8	+100%
(1) Excluding U.S. chew

- 18 -

Volume comparisons versus Swedish Match's 2022 results reflect data

sourced from its disclosures, available at www.swedishmatch.com/investors.

Fourth-Quarter

Swedish Match's total shipment volume for oral products increased by 21.9% versus its corresponding shipments of 175.2 million cans in the fourth quarter of 2022.

Nicotine pouch shipment volume increased by 68.6% compared to Swedish Match's fourth-quarter 2022 shipment volume of 73.8 million cans, mainly driven by 78.2% growth for ZYN in the U.S. -- an outstanding performance that reflected continued broad strength across the country. In Scandinavia, shipment volume for nicotine pouches grew by 3.0%.

Shipment volume for snus declined by 17.6% compared to Swedish Match's fourth-quarter 2022 shipment volume of 69.3 million cans. The decrease was primarily due to Scandinavia, mainly reflecting the comparison versus a strong total market in the prior year period.

Full-Year

Swedish Match's total shipment volume for oral products increased by 17.1% versus its corresponding shipments of 667.1 million cans in 2022.

Nicotine pouch shipment volume increased by 55.3% compared to Swedish Match's 2022 shipment volume of 269.2 million cans, reflecting 62.0% growth for ZYN in the U.S. In Scandinavia, shipment volume for nicotine pouches grew by 6.1%.

Shipment volume for snus declined by 13.8% compared to Swedish Match's 2022 shipment volume of 261.0 million cans.

Swedish Match's performance in the period primarily reflected the same factors as in the quarter, coupled with the impact of excise tax and price increases on snus in Scandinavia in the first quarter (including related inventory movements).


Swedish Match Combustible Product Shipment Volume	Fourth-Quarter				Full-Year
(million units)	2023	2022	Change		2023	2022	Change
Cigars	337.1	259.6	29.9	%	1,578.6	259.6	+100%

Fourth-Quarter

Cigar shipment volume declined by 26.4% compared to Swedish Match's fourth-quarter 2022 cigar shipment volume of 458.3 million units, primarily due to the impact of industry pricing effects.

Full-Year

Cigar shipment volume declined by 12.2% compared to Swedish Match's 2022 cigar shipment volume of 1,798.0 million units, mainly due to the same factor as in the quarter.

- 19 -

Fourth-Quarter


Financial Summary - Quarters Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022 (2)		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 682		$ 316		+100%		21.2	%	366	—	299	25	42	—

Operating Income / (Loss)	$ 227		$ (22)		+100%		+100%		249	(8)	97	25	38	97
Adjustments (1)	(98)		(151)		35.1	%	62.3	%	53	—	(41)	—	—	94
Adjusted Operating Income	$ 325		$ 129		+100%		51.2	%	196	(8)	138	25	38	3

Adjusted Operating Income Margin	47.7	%	40.8	%	6.9pp		10.1pp

(1) See Schedule 8 in Exhibit 99.2 to the Form 8-K dated February 8, 2024, for additional detail.
(2) Swedish Match's results beginning on November 11, 2022, when PMI became the owner of a majority position in the company, through December 31, 2022

PMI recorded net revenues of $682 million in the Swedish Match segment for the fourth-quarter. Compared to Swedish Match's full fourth-quarter 2022 results, net revenues increased by 25.7%, excluding currency. This was mainly driven by the strong growth of smoke-free products, led by nicotine pouch volume growth in the U.S.

PMI recorded adjusted operating income of $325 million in the segment, reflecting an adjusted operating income margin of 47.7%.

Full-Year


Financial Summary - Years Ended December 31,					Change Fav./(Unfav.)			Variance Fav./(Unfav.)
	2023		2022 (2)		Total	Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 2,496		$ 316		+100%	21.2	%	2,180	—	2,113	25	42	—

Operating Income	$ 824		$ (22)		+100%	+100%		846	(8)	694	25	38	97
Adjustments (1)	(390)		(151)		-(100)%	62.3	%	(239)	—	(333)	—	—	94
Adjusted Operating Income	$ 1,214		$ 129		+100%	51.2	%	1,085	(8)	1,027	25	38	3

Adjusted Operating Income Margin	48.6	%	40.8	%	7.8pp	10.1pp

(1) See Schedule 9 in Exhibit 99.2 to the Form 8-K dated February 8, 2024, for additional detail.
(2) Swedish Match's results beginning on November 11, 2022, when PMI became the owner of a majority position in the company, through December 31, 2022

PMI recorded net revenues of $2.5 billion in the Swedish Match segment for the full-year period, with smoke-free products accounting for over 80% of the segment's total net revenues. Compared to Swedish Match's full 2022 results for the same period, net revenues increased by 20.1%, excluding currency. This was mainly driven by the strong growth of smoke-free products, led by nicotine pouch volume growth in the U.S., as well as higher pricing for cigars.

PMI recorded adjusted operating income of $1,214 million in the segment, reflecting an adjusted operating income margin of 48.6%.

- 20 -

WELLNESS AND HEALTHCARE

The operating results of PMI’s Vectura Fertin Pharma business are reported in the Wellness and Healthcare segment.

Financial Summary

Fourth-Quarter


Financial Summary - Quarters Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 69		$ 72		(4.2)	%	(11.1)	%	(3)	5	—	(5)	—	(3)

Operating Income / (Loss)	$ (62)		$ (42)		(47.6)	%	(35.7)	%	(20)	(5)	—	(5)	—	(10)
Adjustments (1)	(15)		(13)		(15.4)	%	(15.4)	%	(2)	—	—	—	—	(2)
Adjusted Operating Income / (Loss)	$ (47)		$ (29)		(62.1)	%	(44.8)	%	(18)	(5)	—	(5)	—	(8)

Adjusted Operating Income / (Loss) Margin	(68.1)	%	(40.3)	%	(27.8)pp		(25.3)pp

(1) See Schedule 8 in Exhibit 99.2 to the Form 8-K dated February 8, 2024, for additional detail.

Net revenues decreased by 11.1% on an organic basis. The adjusted operating loss of $47 million was primarily due to commercial investments and higher administration costs.

Full-Year


Financial Summary - Years Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 306		$ 271		12.9	%	11.8	%	35	3	—	33	—	(1)

Operating Income / (Loss)	$ (870)		$ (258)		-(100)%		-(100)%		(612)	(6)	—	33	—	(639)
Adjustments (1)	(738)		(171)		-(100)%		-(100)%		(567)	—	—	—	—	(567)
Adjusted Operating Income / (Loss)	$ (132)		$ (87)		(51.7)	%	(44.8)	%	(45)	(6)	—	33	—	(72)

Adjusted Operating Income / (Loss) Margin	(43.1)	%	(32.1)	%	(11.0)pp		(9.5)pp

(1) See Schedule 9 in Exhibit 99.2 to the Form 8-K dated February 8, 2024, for additional detail.

Net revenues increased by 11.8% on an organic basis, notably reflecting the higher net revenues for smoking cessation products and select inhalation products.

The adjusted operating loss of $132 million was primarily due to commercial investments and higher administration costs.

- 21 -

Philip Morris International: Delivering a Smoke-Free Future

Philip Morris International (PMI) is a leading international tobacco company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products. Since 2008, PMI has invested $12.5 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for adults who would otherwise continue to smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. In 2022, PMI acquired Swedish Match – a leader in oral nicotine delivery – creating a global smoke-free champion led by the companies’ IQOS and ZYN brands. The U.S. Food and Drug Administration has authorized versions of PMI’s IQOS Platform 1 devices and consumables and Swedish Match’s General snus as Modified Risk Tobacco Products. As of December 31, 2023, PMI's smoke-free products were available for sale in 84 markets, and PMI estimates that approximately 20.8 million adults around the world had already switched to IQOS and stopped smoking. Smoke-free products accounted for approximately 37% of PMI’s total full-year 2023 net revenues. With a strong foundation and significant expertise in life sciences, PMI announced in February 2021 its ambition to expand into wellness and healthcare areas and, through its Vectura Fertin Pharma business, aims to enhance life through the delivery of seamless health experiences. For more information, please visit www.pmi.com and www.pmiscience.com.

Forward-Looking and Cautionary Statements

This press release contains projections of future results and goals and other forward-looking statements, including statements regarding expected financial or operational performance; capital allocation plans; investment strategies; regulatory outcomes; market expectations; and business plans and strategies. 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 the Private Securities Litigation Reform Act of 1995, PMI is identifying important factors that, individually or in the aggregate, could cause actual results and outcomes 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; health concerns relating to the use of tobacco and other nicotine-containing products and exposure to environmental tobacco smoke; litigation related to tobacco use and intellectual property; intense competition; the effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; the impact and consequences of Russia's invasion of Ukraine; changes in adult smoker behavior; the impact of COVID-19 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; adverse changes 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.

- 22 -

PMI's future profitability may also be adversely affected should it be unsuccessful in its attempts to produce and commercialize reduced-risk 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 reduced-risk product category's 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, 2022, Quarterly Report on Form 10-Q for the third quarter ended September 30, 2023, and the Form 10-K for the fourth quarter and year ended December 31, 2023, which will be filed later today. PMI cautions that the foregoing list of important factors is not a complete discussion of all potential risks and uncertainties. PMI does not undertake to update any forward-looking statement that it may make from time to time, except in the normal course of its public disclosure obligations.

Non-GAAP Measures, Glossary and Explanatory Notes

Reconciliations of non-GAAP measures in this release to the most directly comparable U.S. GAAP measures can be found in Exhibit 99.2 to the Form 8-K dated February 8, 2024, and at www.pmi.com/2023Q4earnings. A glossary of key terms, definitions and explanatory notes is available in the aforementioned Exhibit 99.2 and on the same webpage, where additional financial schedules, as well as adjustments and other calculations have also been made available.

Management reviews net revenues, gross profit, operating income, operating income margin, operating cash flow and earnings per share, or "EPS," on an adjusted basis, which may exclude the impact of currency and other items such as acquisitions, asset impairment and exit costs, tax items and other special items. Additionally, starting in 2022 and on a comparative basis, for these measures other than net revenues and operating cash flow, PMI includes adjustments to add back amortization expense on acquisition related intangible assets that are recorded as part of purchase accounting and contribute to PMI’s revenue generation, as well as impairment of intangible assets, if any. While amortization expense on acquisition related intangible assets is excluded in these adjusted measures, the net revenues generated from these acquired intangible assets are included in the company's adjusted measures, unless otherwise stated. Currency-neutral and organic growth rates reflect the way management views underlying performance for these measures. PMI believes that such measures provide useful insight into underlying business trends and results. Management reviews these measures because they exclude changes in currency exchange rates and other factors that may distort underlying business trends, thereby improving the comparability of PMI’s business performance between reporting periods. Furthermore, PMI uses several of these measures in its management compensation program to promote internal fairness and a disciplined assessment of performance against company targets. PMI discloses these measures to enable investors to view the business through the eyes of management.

Non-GAAP measures used in this release should neither be considered in isolation nor as a substitute for the financial measures prepared in accordance with U.S. GAAP.

- 23 -


																	Appendix 1
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Key Market Data

Quarters Ended December 31,
Market	Total Market, bio units			PMI Shipments, bio units									PMI Market Share, % (2)
				Total			Cigarette			HTU			Total			HTU
	2023	2022	% Change	2023	2022	% Change	2023	2022	% Change	2023	2022	% Change	2023	2022	pp Change	2023	2022	pp Change

Total (1) (2)	650.5	658.7	(1.2)	185.1	186.0	(0.5)	151.1	154.0	(1.9)	34.0	32.0	6.1	28.6	28.1	0.5	4.9	4.3	0.6

Europe
France	7.1	7.7	(7.3)	2.8	3.2	(13.7)	2.7	3.1	(13.1)	—	0.1	(40.7)	43.1	43.6	(0.5)	0.7	0.8	(0.1)
Germany (3)	16.0	16.0	(0.2)	6.6	7.1	(6.2)	5.7	5.8	(2.2)	1.0	1.3	(24.3)	38.9	39.7	(0.8)	5.6	4.7	0.9
Italy	18.2	17.8	2.5	10.6	10.2	4.0	6.5	6.4	2.0	4.1	3.8	7.5	54.7	54.3	0.4	19.0	15.4	3.6
Poland	13.1	12.8	2.3	5.6	5.1	10.6	4.3	4.1	6.5	1.3	1.0	27.8	42.8	39.6	3.2	9.6	7.7	1.9
Spain	10.6	10.6	(0.7)	2.9	3.0	(2.5)	2.6	2.8	(6.4)	0.3	0.2	53.2	28.8	28.9	(0.1)	2.4	1.9	0.5

SSEA, CIS & MEA
Egypt	19.3	24.6	(21.8)	6.2	5.9	5.2	5.6	5.4	3.8	0.6	0.5	21.7	31.4	22.2	9.2	2.0	0.9	1.1
Indonesia	72.5	73.4	(1.2)	20.3	21.2	(4.1)	20.3	21.2	(4.1)	—	—	—	28.0	28.9	(0.9)	—	—	—
Philippines	10.7	13.0	(17.7)	5.8	7.7	(25.5)	5.7	7.6	(25.6)	0.1	0.1	(15.0)	53.7	59.4	(5.7)	0.6	0.6	—
Russia	52.4	52.1	0.6	16.5	16.1	2.4	11.4	12.0	(4.7)	5.1	4.1	23.3	31.3	31.8	(0.5)	8.3	7.8	0.5
Turkey	35.3	31.1	13.3	18.7	15.7	19.0	18.7	15.7	19.0	—	—	—	52.9	50.4	2.5	—	—	—

EA, AU & PMI DF
Australia	1.6	2.3	(32.4)	0.5	0.8	(32.9)	0.5	0.8	(32.9)	—	—	—	32.7	32.9	(0.2)	—	—	—
Japan (2)	37.8	37.8	—	13.9	16.1	(13.3)	3.9	5.0	(21.2)	10.0	11.1	(9.7)	40.0	38.0	2.0	27.6	24.4	3.2
South Korea	17.8	17.6	1.1	3.4	3.3	2.9	2.1	2.1	(2.3)	1.3	1.2	12.2	19.3	19.1	0.2	7.5	6.7	0.8

Americas
Argentina	7.1	7.8	(8.1)	4.4	4.9	(10.7)	4.4	4.9	(10.7)	—	—	—	61.7	63.5	(1.8)	—	—	—

Mexico	8.8	9.6	(8.7)	5.7	6.5	(11.6)	5.7	6.4	(11.5)	—	—	—	65.3	67.4	(2.1)	0.5	0.5	—


(1) Market share estimates are calculated using IMS data, unless otherwise stated
(2) Total market and market share estimates include cigarillos in Japan
(3) PMI market share reflects estimated adjusted in-market sales volume share. Historical HTU adjusted in-market sales volume share: Q1, 2023 (5.4%); Q2, 2023 (5.4%); Q3 2023 (4.9%). Historical total adjusted in-market sales volume share: Q1, 2023 (39.4%); Q2, 2023 (39.2%); Q3, 2023 (38.4%);
Note: % change for Total Market and PMI shipments is computed based on millions of units. "-" indicates volume below 50 million units and market share below 0.1%


																	Appendix 2
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Key Market Data

Years Ended December 31,
Market	Total Market, bio units			PMI Shipments, bio units									PMI Market Share, %(2)
				Total			Cigarette			HTU			Total			HTU
	2023	2022	% Change	2023	2022	% Change	2023	2022	% Change	2023	2022	% Change	2023	2022	pp Change	2023	2022	pp Change

Total (1) (2)	2,579.9	2,621.5	(1.6)	738.2	731.1	1.0	612.9	621.9	(1.4)	125.3	109.2	14.7	28.3	27.7	0.6	4.7	4.1	0.6

Europe
France	29.8	32.5	(8.2)	13.0	14.0	(7.3)	12.8	13.7	(7.2)	0.2	0.2	(13.1)	42.5	43.6	(1.1)	0.7	0.7	—
Germany (3)	69.0	70.3	(1.8)	26.5	28.2	(6.0)	23.3	24.8	(5.7)	3.1	3.4	(8.3)	39.0	38.9	0.1	5.3	4.0	1.3
Italy	73.3	72.8	0.7	39.7	40.8	(2.8)	27.3	28.6	(4.5)	12.4	12.3	1.1	53.9	54.1	(0.2)	17.3	14.6	2.7
Poland	56.7	55.7	1.8	23.7	21.7	9.4	18.7	17.1	9.0	5.0	4.5	10.8	41.8	38.9	2.9	8.9	8.2	0.7
Spain	43.6	44.6	(2.4)	12.9	13.6	(5.5)	11.8	12.7	(7.4)	1.1	0.9	22.6	29.3	30.0	(0.7)	2.3	1.7	0.6

SSEA, CIS & MEA
Egypt	74.0	93.6	(20.9)	24.3	21.0	15.4	23.0	20.0	14.8	1.3	1.0	26.9	32.8	22.2	10.6	1.7	0.8	0.9
Indonesia	291.6	304.0	(4.1)	83.4	86.8	(4.0)	83.4	86.8	(4.0)	—	—	—	28.6	28.6	—	—	—	—
Philippines	42.9	53.4	(19.7)	23.8	32.2	(26.2)	23.5	32.0	(26.4)	0.2	0.2	(0.9)	55.4	60.3	(4.9)	0.5	0.4	0.1
Russia	203.4	208.8	(2.6)	64.8	64.7	0.1	47.9	49.3	(2.9)	16.9	15.4	9.8	31.8	31.2	0.6	8.0	7.6	0.4
Turkey	136.5	116.8	16.9	69.0	56.1	23.0	69.0	56.1	23.0	—	—	—	50.5	48.0	2.5	—	—	—

EA, AU & PMI DF
Australia	7.2	8.9	(19.4)	2.5	3.0	(16.0)	2.5	3.0	(16.0)	—	—	—	34.8	33.4	1.4	—	—	—
Japan (2)	149.0	148.3	0.5	60.9	55.5	9.7	17.9	21.1	(15.4)	43.0	34.4	25.1	39.6	37.6	2.0	26.7	23.6	3.1
South Korea	72.0	72.6	(0.7)	14.0	13.9	0.9	8.9	9.4	(5.0)	5.1	4.5	13.1	19.5	19.2	0.3	7.1	6.2	0.9

Americas
Argentina	28.8	30.3	(5.0)	17.8	19.3	(7.9)	17.8	19.3	(7.9)	—	—	—	61.9	63.8	(1.9)	—	—	—

Mexico	30.0	32.2	(6.8)	18.9	21.0	(9.8)	18.8	20.8	(9.9)	0.1	0.1	2.4	63.1	65.2	(2.1)	0.5	0.4	0.1

(1) Market share estimates are calculated using IMS data, unless otherwise stated
(2) Total market and market share estimates include cigarillos in Japan
(3) PMI market share reflects estimated adjusted in-market sales volume share
Note: % change for Total Market and PMI shipments is computed based on millions of units. "-" indicates volume below 50 million units and market share below 0.1%

Exhibit 99.2

Philip Morris International Inc.

Glossary of Key Terms, Definitions

and Explanatory Notes; and

Select Financial Information and Reconciliations of

Non-GAAP Financial Measures

2023 Full Year and Fourth-Quarter Results

February 8, 2024

Glossary of Key Terms, Definitions

and Explanatory Notes

General

•"PMI" refers to Philip Morris International Inc. and its subsidiaries. Trademarks and service marks that are the registered property of, or licensed by, the subsidiaries of PMI, are italicized.

•Comparisons are made to the same prior-year period unless otherwise stated.

•References to total industry (or total market), PMI shipment volume and PMI market share performance reflect cigarettes and heated tobacco units, unless otherwise stated.

•As of the first quarter of 2022, total industry volume, PMI in-market sales volume and PMI market share for the following geographies include the cigarillo category in Japan: the total international market, EA, AU & PMI DF Region, and Japanese domestic market.

•References to total international market, defined as worldwide cigarette and heated tobacco unit volume excluding the U.S., total industry (or total market) and market shares are PMI estimates for tax-paid products based on the latest available data from a number of internal and external sources and may, in defined instances, exclude the People's Republic of China and/or PMI's duty free business.

•"Combustible tobacco products" is the term PMI uses to refer to cigarettes and other tobacco products that are combusted.

•In-market sales, or "IMS," is defined as sales to the retail channel, depending on the market and distribution model.

•"Total shipment volume" is defined as the combined total of cigarette shipment volume and heated tobacco unit shipment volume.

•"SSEA, CIS & MEA" stands for South & Southeast Asia, Commonwealth of Independent States, and Middle East & Africa.

•"EA, AU & PMI DF" stands for East Asia, Australia and PMI Duty Free.

•"Americas" refers to the former Latin America & Canada segment, which was renamed as the Americas segment as of the third quarter of 2021. References to "Americas" may, in defined instances, exclude the U.S.

•In the third quarter of 2021, PMI acquired Fertin Pharma A/S, Vectura Group plc. and OtiTopic, Inc. On March 31, 2022, PMI launched a new Wellness and Healthcare business consolidating these entities, Vectura Fertin Pharma. The operating results of this new business are reported in the Wellness and Healthcare segment. The business operations of PMI's Wellness and Healthcare segment are managed and evaluated separately from the geographical segments.

•As of December 31, 2022, Philip Morris Holland Holdings B.V. (“PMHH”), a wholly owned subsidiary of PMI, had acquired 94.81% of the outstanding shares of Swedish Match. On February 17, 2023, PMHH obtained "advanced title" under the Swedish Companies Act to the remaining issued and outstanding shares in Swedish Match, following the exercise of its right to compulsory redemption of all remaining shares. The operating results of Swedish Match are disclosed as a separate segment. The business operations of the Swedish Match segment are evaluated separately from the geographical segments. Following the combination and the progress in 2023 toward integration of the Swedish Match business into the existing PMI regional segment structure, PMI will update its segment reporting by including Swedish Match results in the four existing geographical regions. As of the first quarter of 2024, PMI will report on this basis.

•Following the deconsolidation of PMI's Canadian subsidiary, Rothmans, Benson & Hedges, Inc. (RBH) on March 22, 2019, PMI continues to report the volume and corresponding royalty revenues of brands sold by RBH for which other PMI subsidiaries are the trademark owner. These include HEETS, Next, Philip Morris and Rooftop. The volume and corresponding royalty revenues for these brands sold by RBH were not material to PMI for all periods presented.

•From time to time, PMI’s shipment volumes are subject to the impact of distributor inventory movements (or wholesaler inventory movements in certain markets where PMI does not sell to distributors), and estimated total industry/market volumes are subject to the impact of inventory movements in various trade channels

that include estimated trade inventory movements of PMI’s competitors arising from market-specific factors that significantly distort reported volume disclosures. Such factors may include changes to the manufacturing supply chain, shipment methods, consumer demand, timing of excise tax increases or other influences that may affect the timing of sales to customers. In such instances, in addition to reviewing PMI shipment volumes and certain estimated total industry/market volumes on a reported basis, management reviews these measures on an adjusted basis that excludes the impact of distributor and/or estimated trade inventory movements. Management also believes that disclosing PMI shipment volumes and estimated total industry/market volumes in such circumstances on a basis that excludes the impact of distributor and/or estimated trade inventory movements, such as on an IMS basis, improves the comparability of performance and trends for these measures over different reporting periods.

•Volume comparisons versus Swedish Match's 2022 fourth-quarter and full-year results reflect data sourced from its disclosures, available at www.swedishmatch.com/investors.

Financial

•Adjusted net revenues exclude the impact related to the termination of a distribution arrangement in the Middle East.

•"Cost of sales" consists principally of: tobacco leaf, non-tobacco raw materials, labor and manufacturing costs; shipping and handling costs; and the cost of devices produced by third-party electronics manufacturing service providers. Estimated costs associated with device warranty programs are generally provided for in cost of sales in the period the related revenues are recognized.

•"Marketing, administration and research costs" include the costs of marketing and selling our products, other costs generally not related to the manufacture of our products (including general corporate expenses), and costs incurred to develop new products. The most significant components of our marketing, administration and research costs are marketing and sales expenses and general and administrative expenses.

•"Cost/Other" in the Consolidated Financial Summary table of total PMI and the six segments of this release reflects the currency-neutral variances of: cost of sales (excluding the volume/mix cost component); marketing, administration and research costs (including asset impairment and exit costs); and amortization and impairment of intangibles. “Cost/Other” also includes the currency-neutral net revenue variance, unrelated to volume/mix and price components, attributable to: fees for certain distribution rights billed to customers in certain markets in the SSEA, CIS & MEA Region and the revenue adjustment for the termination of a distribution arrangement in the Middle East.

•"Adjusted Operating Income Margin" is calculated as adjusted operating income, divided by adjusted net revenues.

•"Adjusted EBITDA" is defined as earnings before interest, taxes, depreciation, amortization and equity (income)/loss in unconsolidated subsidiaries, excluding asset impairment and exit costs, impairment of intangibles, and unusual items.

•"Net debt" is defined as total debt, less cash and cash equivalents.

•Growth rates presented on an organic basis reflect adjusted results, excluding currency, acquisitions and disposals.

•Management reviews net revenues, gross profit, operating income, operating income margin, operating cash flow and earnings per share, or "EPS," on an adjusted basis, which may exclude the impact of currency and other items such as acquisitions, asset impairment and exit costs, tax items and other special items. Additionally, starting in 2022 and on a comparative basis, for these measures other than net revenues and operating cash flow, PMI includes adjustments to add back amortization expense on acquisition related intangible assets that are recorded as part of purchase accounting and contribute to PMI’s revenue generation, as well as impairment of intangible assets, if any. While amortization expense on acquisition related intangible assets is excluded in these adjusted measures, the net revenues generated from these acquired intangible assets are included in the company's adjusted measures, unless otherwise stated. Currency-neutral and organic growth rates reflect the way management views underlying performance for these measures. PMI believes that such measures provide useful insight into underlying business trends and results. Management reviews these measures because they exclude changes in currency exchange rates and other factors that may distort underlying business trends, thereby improving the comparability of PMI’s business performance between reporting periods. Furthermore, PMI uses several of these

measures in its management compensation program to promote internal fairness and a disciplined assessment of performance against company targets. PMI discloses these measures to enable investors to view the business through the eyes of management.

•Non-GAAP measures used by PMI should neither be considered in isolation nor as a substitute for the financial measures prepared in accordance with U.S. GAAP. For a reconciliation of non-GAAP measures to the most directly comparable U.S. GAAP measures, see the "Select Financial Information and Reconciliations of Non-GAAP Financial Measures" section of this document.

•U.S. GAAP Treatment of a country as a Highly Inflationary Economy. Following the categorization of a country by the International Practices Task Force of the Center for Audit Quality as having a three-year cumulative inflation rate greater than 100%, the country is considered highly inflationary in accordance with U.S. GAAP. For such countries, PMI accounts for the operations of its local affiliates as highly inflationary, and to treat the U.S. dollar as the functional currency of the affiliates. Such treatment was effective July 1, 2018, for Argentina, and April 1, 2022, for Turkey.

•"Fair value adjustment for equity security investments" reflects the adjustment resulting from share price movements in passive investments for publicly traded entities that are not controlled or influenced by PMI. Under U.S. GAAP, such adjustments are required, since January 1, 2018, to be reflected directly in the income statement. 2022 adjustments reflect share price movements in PMI's investments in India and Sri Lanka.

•"Swedish Match AB acquisition accounting related item" refers to expenses associated with fair-value adjustments on Swedish Match inventories. In the fourth quarter of 2022, PMI recorded a total fair value step-up adjustment for inventories of $146 million related to the acquisition, of which $125 million was recognized in cost of sales in the fourth quarter of 2022, with the remaining amount recognized in the first quarter of 2023.

•"Income tax impact associated with Swedish Match AB financing" reflects a deferred tax benefit (cost) for unrealized foreign currency losses (gains) on intercompany loans related to the Swedish Match acquisition financing reflected in PMI's consolidated statements of earnings. The underlying pre-tax foreign currency movements fully offset in the consolidated statements of earnings and were reflected as currency translation adjustments in PMI's consolidated statements of stockholders' (deficit) equity.

•Termination of agreement with Foundation for a Smoke-Free World: On September 29, 2023, PMI and the Foundation for a Smoke-Free World (the "Foundation") entered into the Final Grant Agreement and Termination of the Second Amended and Restated Pledge Agreement ("Agreement"). Under the terms of the Agreement, PMI paid $140 million in the third quarter of 2023 in return for the termination of the pledge agreement between the parties. As a result, PMI recorded a pre-tax charge of $140 million in the quarter, commensurate with the early termination of this pledge agreement.

•Russia tax item: In the third quarter of 2023, PMI recorded a tax charge associated with an increase in deferred tax liabilities related to the unremitted earnings of PMI’s Russian subsidiaries ($173 million) due to the unilateral suspension of certain Russian double tax treaties by the Russian government on August 8, 2023, with respect to certain payments including dividends.

Smoke-Free Products

•Smoke-free products ("SFPs") is the term PMI primarily uses to refer to all of its products that are not combustible tobacco products, such as heat-not-burn, e-vapor, and oral nicotine. In addition, SFPs include wellness and healthcare products, as well as consumer accessories such as lighters and matches.

•Reduced-risk products (“RRPs”) is the term PMI uses to refer to products that present, are likely to present, or have the potential to present less risk of harm to smokers who switch to these products versus continuing smoking. PMI has a range of RRPs in various stages of development, scientific assessment and commercialization. PMI's RRPs are smoke-free products that contain and/or generate far lower quantities of harmful and potentially harmful constituents than found in cigarette smoke.

•Wellness and Healthcare products primarily refer to products associated with inhaled therapeutics and oral and intra-oral delivery systems that are included in the operating results of PMI's new Wellness and Healthcare business, Vectura Fertin Pharma.

•"Heated tobacco units" or "HTU" is the term PMI uses to refer to heated tobacco consumables, which include our BLENDS, DELIA, HEETS, HEETS Creations, HEETS Dimensions (defined collectively as "HEETS"), Marlboro HeatSticks, SENTIA, TEREA, TEREA CRAFTED, and TEREA Dimensions, as well as the KT&G-licensed brands, Fiit and Miix (outside of South Korea). HTU's also include zero tobacco heat-not-burn consumables (LEVIA).

•Unless otherwise stated, market share for HTUs is defined as the in-market sales volume for HTUs as a percentage of the total estimated industry sales volume for cigarettes and HTUs. For Japan, total estimated industry sales volume also includes cigarillos.

•Unless otherwise stated, all references to IQOS are to PMI's Platform 1 IQOS devices and heated tobacco consumables.

•IQOS heat-not-burn devices are precisely controlled heating devices into which a specially designed and proprietary tobacco units are inserted and heated to generate an aerosol.

•"PMI heat-not-burn products" include licensed KT&G heat-not-burn products.

•"PMI HTUs" include licensed KT&G HTUs.

•“Total IQOS users” is defined as the estimated number of Legal Age (minimum 18 years) users of PMI heat-not-burn products, for which PMI HTUs represented at least a portion of their daily tobacco consumption over the past seven days.

The estimated number of adults who have "switched to IQOS and stopped smoking" reflects:

•for markets where there are no heat-not-burn products other than PMI heat-not-burn products: daily individual consumption of PMI HTUs represents the totality of their daily tobacco consumption in the past seven days;

•for markets where PMI heat-not-burn products are among other heat-not-burn products: daily individual consumption of HTUs represents the totality of their daily tobacco consumption in the past seven days, of which at least 70% is PMI HTUs.

Note: The above IQOS user metrics reflect PMI estimates, which are based on consumer claims and sample-based statistical assessments with an average margin of error of +/-5% at a 95% Confidence Interval in key volume markets. The accuracy and reliability of IQOS user metrics may vary based on individual market maturity and availability of information.

As of December 2020, PMI heat-not-burn products and HTUs include licensed KT&G heat-not-burn products and HTUs, respectively.

•Swedish Match nicotine pouch products reflect 15 pouches per can in the U.S. and 21 pouches per can outside the U.S.

•Oral smoke-free product volume excludes snuff, snuff leaf and U.S. chew and is measured in cans or, for the purposes of total shipment volumes, in pouches or pouch equivalents.

Select Financial Information and Reconciliations of Non-GAAP Financial Measures


										Schedule 1
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Diluted Earnings Per Share (EPS)
($ in millions, except per share data) / (Unaudited)

		Quarters Ended				Diluted EPS		Years Ended
	December 31,						December 31,
			$ 1.41			2023 Diluted Earnings Per Share (1)			$ 5.02
			$ 1.54			2022 Diluted Earnings Per Share (1)			$ 5.81
			$ (0.13)			Change			$ (0.79)
			(8.4)		%	% Change			(13.6)%

						Reconciliation:
			$ 1.54			2022 Diluted Earnings Per Share (1)			$ 5.81

			0.03			2022 Amortization of intangibles			0.09
			—			2022 Impairment of goodwill and other intangibles			0.06
			0.01			2022 Charges related to the war in Ukraine			0.08
			(0.07)			2022 Costs associated with Swedish Match AB offer			0.06
			0.06			2022 Swedish Match AB acquisition accounting related item			0.06
			(0.13)			2022 Income tax impact associated with Swedish Match AB financing			(0.13)
			—			2022 Tax Items			(0.03)
			(0.05)			2022 Fair value adjustment for equity security investments			(0.02)
			—			2023 Asset impairment and exit costs			(0.06)

			—			2023 Impairment of goodwill and other intangibles			(0.44)
			(0.07)			2023 Amortization of intangibles			(0.25)

			—			2023 Swedish Match AB acquisition accounting related item			(0.01)
			0.14			2023 Income tax impact associated with Swedish Match AB financing			0.11
			—			2023 Termination of distribution arrangement in the Middle East			(0.04)
			—			2023 South Korea indirect tax charge			(0.11)
			—			2023 Termination of agreement with Foundation for a Smoke-Free World			(0.07)
			(0.02)			2023 Charges related to the war in Ukraine			(0.03)
			—			2023 Fair value adjustment for equity security investments			0.02
			—			2023 Tax Items			(0.11)

			(0.20)			Currency			(0.63)
			(0.04)			Interest			(0.21)
			0.02			Change in tax rate			0.03

			0.19			Operations (2)			0.84
			$ 1.41			2023 Diluted Earnings Per Share (1)			$ 5.02

(1) Basic and diluted EPS were calculated using the following (in millions):



		Q4 2023		Q4 2022				FY 2023		FY 2022
		$ 2,196		$ 2,397		Net Earnings attributable to PMI		$ 7,813		$ 9,048
		5		6		Less: Distributed and undistributed earnings attributable to share-based payment awards		22		24
		$ 2,191		$ 2,391		Net Earnings for basic and diluted EPS		$ 7,791		$ 9,024

		1,552		1,550		Weighted-average shares for basic EPS		1,552		1,550
		2		2		Plus Contingently Issuable Performance Stock Units (3)		1		2
		1,554		1,552		Weighted-average shares for diluted EPS		1,553		1,552

(2) Includes the impact of shares outstanding and share-based payments
(3) Including rounding adjustment


								Schedule 2
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)

	Quarters Ended December 31,					Years Ended December 31,
	2023	2022	% Change			2023	2022	% Change
	$ 1.41	$ 1.54	(8.4)	%	Reported Diluted EPS	$ 5.02	$ 5.81	(13.6)	%
	(0.20)				Less: Currency	(0.63)
	$ 1.61	$ 1.54	4.5	%	Reported Diluted EPS, excluding Currency	$ 5.65	$ 5.81	(2.8)	%


	Quarters Ended December 31,					Years Ended December 31,
	2023	2022	% Change			2023	2022	% Change
	$ 1.41	$ 1.54	(8.4)	%	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	—
	0.07	0.03			Amortization of intangibles	0.25	0.09
	—	—			Impairment of goodwill and other intangibles	0.44	0.06
	0.02	0.01			Charges related to the war in Ukraine	0.03	0.08
	—	(0.07)			Costs associated with Swedish Match AB offer	—	0.06
	—	0.06			Swedish Match AB acquisition accounting related item	0.01	0.06
	(0.14)	(0.13)			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	—
	—	(0.05)			Fair value adjustment for equity security investments	(0.02)	(0.02)
	—	—			Tax items	0.11	(0.03)
	$ 1.36	$ 1.39	(2.2)	%	Adjusted Diluted EPS	$ 6.01	$ 5.98	0.5	%
	(0.20)				Less: Currency	(0.63)
	$ 1.56	$ 1.39	12.2	%	Adjusted Diluted EPS, excluding Currency	$ 6.64	$ 5.98	11.0	%


									Schedule 3


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

Net Revenues	Currency	Net Revenues excluding Currency	Acqui- sitions	Net Revenues excl. Currency & Acquisitions	Quarters Ended December 31,	Net Revenues	Total		Excluding Currency		Excluding Currency & Acquisitions

2023					Combustible Tobacco	2022	% Change
$ 1,953	$ 137	$ 1,816	$ —	$ 1,816	Europe	$ 1,698	15.0	%	7.0	%	7.0	%
2,333	(206)	2,539	—	2,539	SSEA, CIS & MEA	2,321	0.5	%	9.4	%	9.4	%
585	(11)	596	—	596	EA, AU & PMI DF	617	(5.1)	%	(3.3)	%	(3.3)	%
519	34	485	—	485	Americas	508	2.2	%	(4.5)	%	(4.5)	%
98	—	98	44	54	Swedish Match	70	39.7	%	40.1	%	(23.4)	%
$ 5,489	$ (45)	$ 5,534	$ 44	$ 5,489	Total Combustible Tobacco	$ 5,214	5.3	%	6.1	%	5.3	%

2023					Smoke-free excl. W&H	2022	% Change
$ 1,661	$ 118	$ 1,543	$ —	$ 1,543	Europe	$ 1,366	21.6	%	13.0	%	13.0	%
374	(121)	495	—	495	SSEA, CIS & MEA	365	2.5	%	35.8	%	35.8	%
845	(35)	880	—	880	EA, AU & PMI DF	861	(1.9)	%	2.2	%	2.2	%
26	1	25	—	25	Americas	28	(8.4)	%	(10.7)	%	(10.7)	%
584	—	584	255	329	Swedish Match	246	+100%		+100%		33.9	%
$ 3,489	$ (38)	$ 3,527	$ 255	$ 3,273	Total Smoke-free excl. W&H	$ 2,866	21.7	%	23.1	%	14.2	%

2023					Wellness and Healthcare	2022	% Change
$ 69	$ 5	$ 64	$ —	$ 64	Wellness and Healthcare	$ 72	(4.2)	%	(11.1)	%	(11.1)	%

2023					Smoke-free incl. W&H	2022	% Change
$ 3,558	$ (33)	$ 3,591	$ 255	$ 3,337	Smoke-free incl. W&H	$ 2,938	21.1	%	22.2	%	13.6	%

2023					PMI	2022	% Change
$ 3,614	$ 255	$ 3,359	$ —	$ 3,359	Europe	$ 3,064	18.0	%	9.6	%	9.6	%
2,707	(327)	3,034	—	3,034	SSEA, CIS & MEA	2,686	0.8	%	13.0	%	13.0	%
1,430	(46)	1,476	—	1,476	EA, AU & PMI DF	1,478	(3.2)	%	(0.1)	%	(0.1)	%
545	35	510	—	510	Americas	536	1.7	%	(4.9)	%	(4.9)	%
682	—	682	299	383	Swedish Match	316	+100%		+100%		21.2	%
69	5	64	—	64	Wellness and Healthcare	72	(4.2)	%	(11.1)	%	(11.1)	%
$ 9,047	$ (78)	$ 9,125	$299	$ 8,826	Total PMI	$ 8,152	11.0	%	11.9	%	8.3	%


Note: Sum of product categories or Regions might not foot to Total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million


										Schedule 4
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions
($ in millions) / (Unaudited)

Net Revenues		Currency	Net Revenues excluding Currency	Acqui- sitions	Net Revenues excl. Currency & Acquisitions	Years Ended December 31,	Net Revenues	Total		Excluding Currency		Excluding Currency & Acquisitions

2023						Combustible Tobacco	2022	% Change
$ 8,037		$ 116	$ 7,921	$ —	$ 7,921	Europe	$ 7,694	4.5	%	3.0	%	3.0	%
9,321	(1)	(814)	10,135	—	10,135	SSEA, CIS & MEA	9,173	1.6	%	10.5	%	10.5	%
2,676		(117)	2,793	—	2,793	EA, AU & PMI DF	2,831	(5.5)	%	(1.3)	%	(1.3)	%
1,869		96	1,773	—	1,773	Americas	1,804	3.6	%	(1.7)	%	(1.7)	%
431		—	431	378	54	Swedish Match	70	+100%		+100%		(23.4)	%
$ 22,334		$ (720)	$ 23,053	$378	$ 22,676	Total Combustible Tobacco	$ 21,572	3.5	%	6.9	%	5.1	%

2023						Smoke-free excl. W&H	2022	% Change
$ 5,561		$ 133	$ 5,428	$ —	$ 5,428	Europe	$ 5,175	7.5	%	4.9	%	4.9	%
1,308		(246)	1,554	—	1,554	SSEA, CIS & MEA	1,294	1.0	%	20.1	%	20.1	%
3,525		(283)	3,808	—	3,808	EA, AU & PMI DF	3,105	13.5	%	22.6	%	22.6	%
75		—	75	—	75	Americas	99	(23.6)	%	(24.0)	%	(24.0)	%
2,065		—	2,065	1,735	329	Swedish Match	246	+100%		+100%		33.9	%
$ 12,534		$ (395)	$ 12,930	$ 1,735	$ 11,194	Total Smoke-free excl. W&H	$ 9,919	26.4	%	30.3	%	12.9	%

2023						Wellness and Healthcare	2022	% Change
$ 306		$ 3	$303	$—	$ 303	Wellness and Healthcare	$ 271	12.9	%	11.8	%	11.8	%

2023						Smoke-free incl. W&H	2022	% Change
$ 12,840		$ (392)	$ 13,233	$ 1,735	$ 11,497	Smoke-free incl. W&H	$ 10,190	26.0	%	29.9	%	12.8	%

2023						PMI	2022	% Change
$ 13,598		$ 249	$ 13,349	$ —	$ 13,349	Europe	$ 12,869	5.7	%	3.7	%	3.7	%
10,629	(1)	(1,060)	11,689	—	11,689	SSEA, CIS & MEA	10,467	1.5	%	11.7	%	11.7	%
6,201		(400)	6,601	—	6,601	EA, AU & PMI DF	5,936	4.5	%	11.2	%	11.2	%
1,944		96	1,848	—	1,848	Americas	1,903	2.2	%	(2.9)	%	(2.9)	%
2,496		—	2,496	2,113	383	Swedish Match	316	+100%		+100%		21.2	%
306		3	303	—	303	Wellness and Healthcare	271	12.9	%	11.8	%	11.8	%
$ 35,174		$ (1,112)	$ 36,286	$2,113	$ 34,173	Total PMI	$ 31,762	10.7	%	14.2	%	7.6	%


(1) Includes a reduction in net revenues of $80 million related to the termination of distribution arrangement in the Middle East
Note: Sum of product categories or Regions might not foot to Total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million


															Schedule 5


PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Net Revenues to Adjusted Net Revenues, excluding Currency and Acquisitions
($ in millions) / (Unaudited)

Net Revenues	Special Items		Adjusted Net Revenues	Currency	Adjusted Net Revenues excluding Currency	Acqui- sitions	Adjusted Net Revenues excluding Currency & Acqui- sitions			Net Revenues	Special Items	Adjusted Net Revenues	Total		Excluding Currency		Excluding Currency & Acqui- sitions

2023								Quarters Ended December 31,		2022			% Change
$ 3,614	$ —		$ 3,614	$ 255	$ 3,359	$ —	$ 3,359		Europe	$ 3,064	$ —	$ 3,064	18.0	%	9.6	%	9.6	%
2,707	—		2,707	(327)	3,034	—	3,034		SSEA, CIS & MEA	2,686	—	2,686	0.8	%	13.0	%	13.0	%
1,430	—		1,430	(46)	1,476	—	1,476		EA, AU & PMI DF	1,478	—	1,478	(3.2)	%	(0.1)	%	(0.1)	%
545	—		545	35	510	—	510		Americas	536	—	536	1.7	%	(4.9)	%	(4.9)	%
682	—		682	—	682	299	383		Swedish Match	316	—	316	+100%		+100%		21.2	%
69	—		69	5	64	—	64		Wellness and Healthcare	72	—	72	(4.2)	%	(11.1)	%	(11.1)	%
$ 9,047	$ —		$ 9,047	$ (78)	$ 9,125	$ 299	$ 8,826		Total PMI	$ 8,152	$ —	$ 8,152	11.0	%	11.9	%	8.3	%

2023								Years Ended December 31,		2022			% Change
$ 13,598	$ —		$ 13,598	$ 249	$ 13,349	$ —	$ 13,349		Europe	$ 12,869	$ —	$ 12,869	5.7	%	3.7	%	3.7	%
10,629	(80)	(1)	10,709	(1,060)	11,769	—	11,769		SSEA, CIS & MEA	10,467	—	10,467	2.3	%	12.4	%	12.4	%
6,201	—		6,201	(400)	6,601	—	6,601		EA, AU & PMI DF	5,936	—	5,936	4.5	%	11.2	%	11.2	%
1,944	—		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		Total PMI	$ 31,762	$ —	$ 31,762	11.0	%	14.5	%	7.8	%
(1) Reflects a reduction in net revenues of $80 million related to the termination of distribution arrangement in the Middle East


													Schedule 6
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Gross Profit by Product Category to Adjusted Gross Profit, excluding Currency and Acquisitions
($ in millions) / (Unaudited)

Gross Profit	Special Items (1)	Adjusted Gross Profit	Currency	Adjusted Gross Profit excluding Currency	Acqui- sitions	Adjusted Gross Profit excl. Currency & Acquisitions	Quarters Ended December 31,	Gross Profit	Special Items (1)	Adjusted Gross Profit	Total		Excluding Currency		Excluding Currency & Acquisitions

2023								2022			% Change






$ 5,585	$ (18)	$ 5,603	$ (117)	$ 5,720	$ 210	$ 5,510	Total PMI	$ 4,941	$ (157)	$ 5,098	9.9	%	12.2	%	8.1	%

2023								2022			% Change






$ 3,304	$ (3)	$ 3,306	$ (67)	$ 3,373	$ 24	$ 3,349	Total Combustible Tobacco	$ 3,323	$ (34)	$ 3,357	(1.5)	%	0.5	%	(0.2)	%













2023								2022			% Change
$ 2,281	$ (15)	$ 2,297	$ (50)	$ 2,347	$ 186	$ 2,161	Total Smoke-free incl. W&H	$ 1,618	$ (123)	$ 1,741	32.0	%	34.8	%	24.1	%

(1) 2023 fourth-quarter includes amortization of intangibles ($15 million in Smoke-free incl. W&H) and charges related to the war in Ukraine ($4 million in Combustible Tobacco) 2022 fourth-quarter includes Swedish Match AB acquisition accounting related items ($125 million of which $18 million in Combustible Tobacco and $107 million in Smoke-free incl. W&H), amortization of intangibles ($17 million in Smoke-free incl. W&H) and charges related to the war in Ukraine ($16 in Combustible Tobacco)
Note: Sum of product categories and special items might not foot due to roundings.


													Schedule 7
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Gross Profit by Product Category to Adjusted Gross Profit, excluding Currency and Acquisitions
($ in millions) / (Unaudited)

Gross Profit	Special Items (1)	Adjusted Gross Profit	Currency	Adjusted Gross Profit excluding Currency	Acqui- sitions	Adjusted Gross Profit excl. Currency & Acquisitions	Years Ended December 31,	Gross Profit	Special Items (1)	Adjusted Gross Profit	Total		Excluding Currency		Excluding Currency & Acquisitions

2023								2022			% Change






$ 22,281	$ (170)	$ 22,451	$ (945)	$ 23,396	$ 1,442	$ 21,954	Total PMI	$ 20,360	$ (356)	$ 20,716	8.4	%	12.9	%	6.0	%

2023								2022			% Change






$ 14,085	$ (124)	$ 14,208	$ (571)	$ 14,780	$ 200	$ 14,580	Total Combustible Tobacco	$ 14,475	$ (57)	$ 14,532	(2.2)	%	1.7	%	0.3	%













2023								2022			% Change
$ 8,196	$ (46)	$ 8,243	$ (374)	$ 8,616	$ 1,242	$ 7,374	Total Smoke-free incl. W&H	$ 5,885	$ (299)	$ 6,184	33.3	%	39.3	%	19.2	%

(1) 2023 full-year includes termination of distribution arrangement in the Middle East ($80 million in Combustible Tobacco), amortization of intangibles ($58 million of which $12 million in Combustible Tobacco and $46 million in Smoke-free incl. W&H), Swedish Match AB acquisition accounting related items ($18 million in Combustible Tobacco) and charges related to the war in Ukraine ($15 million in Combustible Tobacco) 2022 full-year includes Swedish Match AB acquisition accounting related items ($125 million of which $18 million in Combustible Tobacco and $107 million in Smoke-free incl. W&H), impairment of goodwill and other intangibles ($112 million in Smoke-free incl. W&H), charges related to the war in Ukraine ($61 million of which $39 million in Combustible Tobacco and $22 million in Smoke-free incl. W&H) and amortization of intangibles ($58 million in Smoke-free incl. W&H)
Note: Sum of product categories and special items might not foot due to roundings.


														Schedule 8


PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Adjustments of Operating Income for the Impact of Currency and Acquisitions
($ in millions) / (Unaudited)

Operating Income	Currency	Operating Income excluding Currency	Acqui-sitions	Operating Income excluding Currency & Acquisitions				Operating Income		Total	Excluding Currency	Excluding Currency & Acquisitions

2023						Quarters Ended December 31,		2022		% Change
$ 1,566		$ 122	$ 1,444	$ —	$ 1,444		Europe		$ 1,355			15.6	%	6.6	%	6.6	%
676		(205)	881	—	881		SSEA, CIS & MEA		855			(20.9)	%	3.0	%	3.0	%
561		(82)	643	—	643		EA, AU & PMI DF		678			(17.3)	%	(5.2)	%	(5.2)	%
(79)		(123)	44	—	44		Americas		100			-(100)%		(56.0)	%	(56.0)	%
227		(8)	235	97	138		Swedish Match		(22)			+100%		+100%		+100%
(62)		(5)	(57)	—	(57)		Wellness and Healthcare		(42)			(47.6)	%	(35.7)	%	(35.7)	%
$ 2,889		$ (301)	$ 3,190	$ 97	$ 3,093		Total PMI		$ 2,924			(1.2)	%	9.1	%	5.8	%

2023						Years Ended December 31,		2022		% Change
$ 6,012		$ 186	$ 5,826	$ —	$ 5,826		Europe		$ 5,802			3.6	%	0.4	%	0.4	%
3,047		(653)	3,700	—	3,700		SSEA, CIS & MEA		3,864			(21.1)	%	(4.2)	%	(4.2)	%
2,481		(395)	2,876	—	2,876		EA, AU & PMI DF		2,424			2.4	%	18.6	%	18.6	%
62		(197)	259	—	259		Americas		436			(85.8)	%	(40.6)	%	(40.6)	%
824		(8)	832	694	138		Swedish Match		(22)			+100%		+100%		+100%
(870)		(6)	(864)	—	(864)		Wellness and Healthcare		(258)			-(100)%		-(100)%		-(100)%
$ 11,556		$ (1,073)	$ 12,629	$ 694	$ 11,935		Total PMI		$ 12,246			(5.6)	%	3.1	%	(2.5)	%


																Schedule 9


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

Operating Income	Special Items (1)	Adjusted Operating Income	Currency	Adjusted Operating Income excluding Currency	Acqui- sitions	Adjusted Operating Income excluding Currency & Acqui- sitions			Operating Income	Special Items (1)	Adjusted Operating Income	Total	Excluding Currency	Excluding Currency & Acqui- sitions

2023							Quarters Ended December 31,		2022			% Change
$ 1,566	$ (44)		$ 1,610	$ 122	$ 1,488	$ —	$ 1,488	Europe		$ 1,355	$ 38	$ 1,317		22.2	%	13.0	%	13.0	%
676	(5)		681	(205)	886	—	886	SSEA, CIS & MEA		855	38	817		(16.6)	%	8.4	%	8.4	%
561	—		561	(82)	643	—	643	EA, AU & PMI DF		678	31	647		(13.3)	%	(0.6)	%	(0.6)	%
(79)	(1)		(78)	(123)	45	—	45	Americas		100	5	95		-(100)%		(52.6)	%	(52.6)	%
227	(98)		325	(8)	333	138	195	Swedish Match		(22)	(151)	129		+100%		+100%		51.2	%
(62)	(15)		(47)	(5)	(42)	—	(42)	Wellness and Healthcare		(42)	(13)	(29)		(62.1)	%	(44.8)	%	(44.8)	%
$ 2,889	$ (163)		$ 3,052	$ (301)	$ 3,353	$ 138	$ 3,215	Total PMI		$ 2,924	$ (52)	$ 2,976		2.6	%	12.7	%	8.0	%

2023							Years Ended December 31,		2022			% Change
$ 6,012	$ (202)		$ 6,214	$ 186	$ 6,028	$ —	$ 6,028	Europe		$ 5,802	$ (242)	$ 6,044		2.8	%	(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	Total PMI		$ 12,246	$ (662)	$ 12,908		3.3	%	11.6	%	3.7	%

(1) See Schedule 10 and 11 for Special Items details


											Schedule 10 (1/2)
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Operating Income to Adjusted Operating Income
($ in millions) / (Unaudited)

	Quarters Ended December 31,		Change Fav./(Unfav.)				Variance Fav./(Unfav.)
PMI	2023	2022	Total		Excl. Curr. & Acquisitions		Total	Currency	Acquisitions	Price	Vol/Mix	Cost/Other
Reported Operating Income	$ 2,889	$ 2,924	(1.2)	%	5.8	%	$ (35)	$ (301)	$ 97	$ 631	$ (53)	$ (409)



Amortization of intangibles	(129)	(58)	-(100)%		(51.7)	%	(71)	—	(41)	—	—	(30)
Charges related to the war in Ukraine	(34)	(23)	(47.8)	%	(47.8)	%	(11)	—	—	—	—	(11)
Costs associated with Swedish Match AB offer	—	154	-(100)%		-(100)%		(154)	—	—	—	—	(154)
Swedish Match AB acquisition accounting related items	—	(125)	+100%		+100%		125	—	—	—	—	125


Adjusted Operating Income	$ 3,052	$ 2,976	2.6	%	8.0	%	$ 76	$ (301)	$ 138	$ 631	$ (53)	$ (339)

Europe
Reported Operating Income	$ 1,566	$ 1,355	15.6	%	6.6	%	$ 211	$ 122	$ —	$ 187	$ 146	$ (244)

Amortization of intangibles	(10)	(10)	—	%	—	%	—	—	—	—	—	—
Charges related to the war in Ukraine	(34)	(23)	(47.8)	%	(47.8)	%	(11)	—	—	—	—	(11)
Costs associated with Swedish Match AB offer	—	71	-(100)%		-(100)%		(71)	—	—	—	—	(71)

Adjusted Operating Income	$ 1,610	$ 1,317	22.2	%	13.0	%	$ 293	$ 122	$ —	$ 187	$ 146	$ (162)

SSEA, CIS & MEA
Reported Operating Income	$ 676	$ 855	(20.9)	%	3.0	%	$ (179)	$ (205)	$ —	$ 257	$ (49)	$ (182)


Amortization of intangibles	(5)	(5)	—	%	—	%	—	—	—	—	—	—
Costs associated with Swedish Match AB offer	—	43	-(100)%		-(100)%		(43)	—	—	—	—	(43)

Adjusted Operating Income	$ 681	$ 817	(16.6)	%	8.4	%	$ (136)	$ (205)	$ —	$ 257	$ (49)	$ (139)


											Schedule 10 (2/2)
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Operating Income to Adjusted Operating Income
($ in millions) / (Unaudited)

	Quarters Ended December 31,		Change Fav./(Unfav.)				Variance Fav./(Unfav.)
EA, AU & PMI DF	2023	2022	Total		Excl. Curr. & Acquisitions		Total	Currency	Acqui-sitions	Price	Vol/Mix	Cost/Other
Reported Operating Income	$ 561	$ 678	(17.3)	%	(5.2)	%	$ (117)	$ (82)	$ —	$ 133	$ (133)	$ (35)

Amortization of intangibles	—	(1)	+100%		+100%		1	—	—	—	—	1
Costs associated with Swedish Match AB offer	—	32	-(100)%		-(100)%		(32)	—	—	—	—	(32)


Adjusted Operating Income	$ 561	$ 647	(13.3)	%	(0.6)	%	$ (86)	$ (82)	$ —	$ 133	$ (133)	$ (4)

Americas
Reported Operating Income	$ (79)	$ 100	-(100)%		(56.0)	%	$ (179)	$ (123)	$ —	$ 34	$ (55)	$ (35)

Amortization of intangibles	(1)	(3)	66.7	%	66.7	%	2	—	—	—	—	2
Costs associated with Swedish Match AB offer	—	8	-(100)%		-(100)%		(8)	—	—	—	—	(8)

Adjusted Operating Income	$ (78)	$ 95	-(100)%		(52.6)	%	$ (173)	$ (123)	$ —	$ 34	$ (55)	$ (29)

Swedish Match
Reported Operating Income	$ 227	$ (22)	+100%		+100%		$ 249	$ (8)	$ 97	$ 25	$ 38	$ 97

Amortization of intangibles	(98)	(26)	-(100)%		-(100)%		(72)	—	(41)	—	—	(31)
Swedish Match AB acquisition accounting related items	—	(125)	+100%		+100%		125	—	—	—	—	125
Adjusted Operating Income	$ 325	$ 129	+100%		51.2	%	$ 196	$ (8)	$ 138	$ 25	$ 38	$ 3

Wellness & Healthcare
Reported Operating Income / (Loss)	$ (62)	$ (42)	(47.6)	%	(35.7)	%	$ (20)	$ (5)	$ —	$ (5)	$ —	$ (10)

Amortization of intangibles	(15)	(13)	(15.4)	%	(15.4)	%	(2)	—	—	—	—	(2)

Adjusted Operating Income / (Loss)	$ (47)	$ (29)	(62.1)	%	(44.8)	%	$ (18)	$ (5)	$ —	$ (5)	$ —	$ (8)


											Schedule 11 (1/2)
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,		Change Fav./(Unfav.)				Variance Fav./(Unfav.)
PMI	2023	2022	Total		Excl. Curr. & Acquisitions		Total	Currency	Acquisitions	Price	Vol/Mix	Cost/Other
Reported Operating Income	$ 11,556	$ 12,246	(5.6)	%	(2.5)	%	$ (690)	$ (1,073)	$ 694	$ 1,940	$ (91)	$ (2,160)
Asset Impairment & Exit Costs	(109)	—	—	%	—	%	(109)	—	—	—	—	(109)
Termination of distribution arrangement in the Middle East	(80)	—	—	%	—	%	(80)	—	—	—	—	(80)
Impairment of goodwill and other intangibles	(680)	(112)	-(100)%		-(100)%		(568)	—	—	—	—	(568)
Amortization of intangibles	(497)	(159)	-(100)%		(14.5)	%	(338)	—	(315)	—	—	(23)
Charges related to the war in Ukraine	(53)	(151)	64.9	%	64.9	%	98	—	—	—	—	98
Costs associated with Swedish Match AB offer	—	(115)	+100%		+100%		115	—	—	—	—	115
Swedish Match AB acquisition accounting related items	(18)	(125)	85.6	%	+100%		107	—	(18)	—	—	125
South Korea Indirect Tax Charge	(204)	—	—	%	—	%	(204)	—	—	—	—	(204)
Termination of agreement with Foundation for a Smoke-Free World	(140)	—	—	%	—	%	(140)	—	—	—	—	(140)
Adjusted Operating Income	$ 13,337	$ 12,908	3.3	%	3.7	%	$ 429	$ (1,073)	$ 1,027	$ 1,940	$ (91)	$ (1,374)

Europe
Reported Operating Income	$ 6,012	$ 5,802	3.6	%	0.4	%	$ 210	$ 186	$ —	$ 540	$ (79)	$ (437)
Asset Impairment & Exit Costs	(49)	—	—	%	—	%	(49)	—	—	—	—	(49)
Amortization of intangibles	(38)	(38)	—	%	—	%	—	—	—	—	—	—
Charges related to the war in Ukraine	(53)	(151)	64.9	%	64.9	%	98	—	—	—	—	98
Costs associated with Swedish Match AB offer	—	(53)	+100%		+100%		53	—	—	—	—	53
Termination of agreement with Foundation for a Smoke-Free World	(62)	—	—	%	—	%	(62)	—	—	—	—	(62)
Adjusted Operating Income	$ 6,214	$ 6,044	2.8	%	(0.3)	%	$ 170	$ 186	$ —	$ 540	$ (79)	$ (477)

SSEA, CIS & MEA
Reported Operating Income	$ 3,047	$ 3,864	(21.1)	%	(4.2)	%	$ (817)	$ (653)	$ —	$ 1,008	$ (237)	$ (935)
Asset Impairment & Exit Costs	(34)	—	—	%	—	%	(34)	—	—	—	—	(34)
Termination of distribution arrangement in the Middle East	(80)	—	—	%	—	%	(80)	—	—	—	—	(80)
Amortization of intangibles	(20)	(23)	13.0	%	13.0	%	3	—	—	—	—	3
Costs associated with Swedish Match AB offer	—	(33)	+100%		+100%		33	—	—	—	—	33
Termination of agreement with Foundation for a Smoke-Free World	(44)	—	—	%	—	%	(44)	—	—	—	—	(44)
Adjusted Operating Income	$ 3,225	$ 3,920	(17.7)	%	(1.1)	%	$ (695)	$ (653)	$ —	$ 1,008	$ (237)	$ (813)


											Schedule 11 (2/2)
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,		Change Fav./(Unfav.)				Variance Fav./(Unfav.)
EA, AU & PMI DF	2023	2022	Total		Excl. Curr. & Acquisitions		Total	Currency	Acquisitions	Price	Vol/Mix	Cost/Other
Reported Operating Income	$ 2,481	$ 2,424	2.4	%	18.6	%	$ 57	$ (395)	$ —	$ 206	$ 326	$ (80)
Asset Impairment & Exit Costs	(21)	—	—	%	—	%	(21)	—	—	—	—	(21)
Amortization of intangibles	(2)	(4)	50.0	%	50.0	%	2	—	—	—	—	2
Costs associated with Swedish Match AB offer	—	(24)	+100%		+100%		24	—	—	—	—	24
South Korea Indirect Tax Charge	(204)	—	—	%	—	%	(204)	—	—	—	—	(204)
Termination of agreement with Foundation for a Smoke-Free World	(27)	—	—	%	—	%	(27)	—	—	—	—	(27)
Adjusted Operating Income	$ 2,735	$ 2,452	11.5	%	27.7	%	$ 283	$ (395)	$ —	$ 206	$ 326	$ 146

Americas
Reported Operating Income	$ 62	$ 436	(85.8)	%	(40.6)	%	$ (374)	$ (197)	$ —	$ 128	$ (139)	$ (166)
Asset Impairment & Exit Costs	(5)	—	—	%	—	%	(5)	—	—	—	—	(5)
Amortization of intangibles	(7)	(9)	22.2	%	22.2	%	2	—	—	—	—	2
Costs associated with Swedish Match AB offer	—	(5)	+100%		+100%		5	—	—	—	—	5
Termination of agreement with Foundation for a Smoke-Free World	(7)	—	—	%	—	%	(7)	—	—	—	—	(7)
Adjusted Operating Income	$ 81	$ 450	(82.0)	%	(38.2)	%	$ (369)	$ (197)	$ —	$ 128	$ (139)	$ (161)

Swedish Match
Reported Operating Income	$ 824	$ (22)	+100%		+100%		$ 846	$ (8)	$ 694	$ 25	$ 38	$ 97

Amortization of intangibles	(372)	(26)	-(100)%		-(100)%		(346)	—	(315)	—	—	(31)
Swedish Match AB acquisition accounting related items	(18)	(125)	85.6	%	+100%		107	—	(18)	—	—	125
Adjusted Operating Income	$ 1,214	$ 129	+100%		51.2	%	$ 1,085	$ (8)	$ 1,027	$ 25	$ 38	$ 3

Wellness & Healthcare
Reported Operating Income / (Loss)	$ (870)	$ (258)	-(100)%		-(100)%		$ (612)	$ (6)	$ —	$ 33	$ —	$ (639)

Amortization of intangibles	(58)	(59)	1.7	%	1.7	%	1	—	—	—	—	1
Impairment of goodwill and other intangibles	(680)	(112)	-(100)%		-(100)%		(568)	—	—	—	—	(568)
Adjusted Operating Income / (Loss)	$ (132)	$ (87)	(51.7)	%	(44.8)	%	$ (45)	$ (6)	$ —	$ 33	$ —	$ (72)


																			Schedule 12


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

Adjusted Operating Income (1)	Adjusted Net Revenues (2)	Adjusted Operating Income Margin		Adjusted Operating Income excluding Currency (1)	Adjusted Net Revenues excluding Currency (2)	Adjusted Operating Income Margin excluding Currency		Adjusted Operating Income excluding Currency & Acqui- sitions (1)	Adjusted Net Revenues excluding Currency & Acqui- sitions (2)	Adjusted Operating Income Margin excluding Currency & Acqui- sitions				Adjusted Operating Income (1)	Adjusted Net Revenues (2)	Adjusted Operating Income Margin		Adjusted Operating Income Margin	Adjusted Operating Income Margin excluding Currency	Adjusted Operating Income Margin excluding Currency & Acqui- sitions

2023												Quarters Ended December 31,		2022				% Points Change
$ 1,610	$ 3,614	44.5	%	$ 1,488	$ 3,359	44.3	%	$ 1,488	$ 3,359	44.3	%		Europe	$ 1,317	$ 3,064	43.0	%	1.5	1.3	1.3
681	2,707	25.2	%	886	3,034	29.2	%	886	3,034	29.2	%		SSEA, CIS & MEA	817	2,686	30.4	%	(5.2)	(1.2)	(1.2)
561	1,430	39.2	%	643	1,476	43.6	%	643	1,476	43.6	%		EA, AU & PMI DF	647	1,478	43.8	%	(4.6)	(0.2)	(0.2)
(78)	545	(14.3)	%	45	510	8.8	%	45	510	8.8	%		Americas	95	536	17.7	%	(32.0)	(8.9)	(8.9)
325	682	47.7	%	333	682	48.8	%	195	383	50.9	%		Swedish Match	129	316	40.8	%	6.9	8.0	10.1
(47)	69	(68.1)	%	(42)	64	(65.6)	%	(42)	64	(65.6)	%		Wellness and Healthcare	(29)	72	(40.3)	%	(27.8)	(25.3)	(25.3)
$ 3,052	$ 9,047	33.7	%	$ 3,353	$ 9,125	36.7	%	$ 3,215	$ 8,826	36.4	%		Total PMI	$ 2,976	$ 8,152	36.5	%	(2.8)	0.2	(0.1)

2023												Years Ended December 31,		2022				% 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	11,769	33.0	%		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)


(1) For the calculation of Adjusted Operating Income and Adjusted Operating Income excluding currency and acquisitions refer to Schedule 10 and 11
(2) For the calculation of Adjusted Net Revenues excluding currency and acquisitions refer to Schedule 5


								Schedule 13
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Condensed Statements of Earnings
($ in millions, except per share data) / (Unaudited)

	Quarters Ended December 31,					Years Ended December 31,
	2023	2022	Change Fav./(Unfav.)			2023	2022	Change Fav./(Unfav.)


	9,047	8,152	11.0	%	Net Revenues	35,174	31,762	10.7	%
	3,462	3,211	(7.8)	%	Cost of sales	12,893	11,402	(13.1)	%
	5,585	4,941	13.0	%	Gross profit	22,281	20,360	9.4	%
	2,696	2,017	(33.7)	%	Marketing, administration and research costs	10,060	8,114	(24.0)	%
	—	—	—		Impairment of goodwill	665	—	—
	2,889	2,924	(1.2)	%	Operating Income	11,556	12,246	(5.6)	%
	273	170	(60.6)	%	Interest expense, net	1,061	588	(80.4)	%
	9	8	(12.5)	%	Pension and other employee benefit costs	45	24	(87.5)	%
	2,607	2,746	(5.1)	%	Earnings before income taxes	10,450	11,634	(10.2)	%
	320	409	21.8	%	Provision for income taxes	2,339	2,244	(4.2)	%
	(26)	(157)	(83.4)	%	Equity investments and securities (income)/loss, net	(157)	(137)	14.6	%
	2,313	2,494	(7.3)	%	Net Earnings	8,268	9,527	(13.2)	%
	117	97	(20.6)	%	Net Earnings attributable to noncontrolling interests	455	479	5.0	%
	$ 2,196	$ 2,397	(8.4)	%	Net Earnings attributable to PMI	$ 7,813	$ 9,048	(13.6)	%

					Per share data: (1)
	$ 1.41	$ 1.54	(8.4)	%	Basic Earnings Per Share	$ 5.02	$ 5.82	(13.7)	%
	$ 1.41	$ 1.54	(8.4)	%	Diluted Earnings Per Share	$ 5.02	$ 5.81	(13.6)	%


(1) Net Earnings and weighted-average shares used in the basic and diluted Earnings Per Share computations for the quarters and for the years ended December 31, 2023 and 2022 are shown on Schedule 1, Footnote 1


				Schedule 14
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Condensed Balance Sheets
($ in millions) / (Unaudited)

	December 31,			December 31,
	2023			2022
Assets
Cash and cash equivalents		$	3,060		$	3,207
All other current assets		16,695			16,412
Property, plant and equipment, net		7,516			6,710
Goodwill		16,779			19,655
Other intangible assets, net		9,864			6,732
Equity investments		4,929			4,431
Other assets		6,461			4,534
Total assets		$	65,304		$	61,681

Liabilities and Stockholders' (Deficit) Equity
Short-term borrowings		$	1,968		$	5,637
Current portion of long-term debt		4,698			2,611
All other current liabilities		19,717			19,088
Long-term debt		41,243			34,875
Deferred income taxes		2,335			1,956
Other long-term liabilities		4,789			3,825
Total liabilities		74,750			67,992

Total PMI stockholders' deficit		(11,225)			(8,957)
Noncontrolling interests		1,779			2,646
Total stockholders' (deficit) equity		(9,446)			(6,311)
Total liabilities and stockholders' (deficit) equity		$	65,304		$	61,681


							Schedule 15
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Calculation of Total Debt to Adjusted EBITDA and Net Debt to Adjusted EBITDA Ratios
($ in millions, except ratios) / (Unaudited)

	Year Ended December 31, 2023	Year Ended December 31, 2022


Net Earnings				$	8,268			$	9,527
Equity investments and securities (income)/loss, net				(157)				(137)
Provision for income taxes				2,339				2,244
Interest expense, net				1,061				588
Depreciation, amortization and impairment of goodwill and other intangibles				2,078				1,189
Asset impairment and exit costs and Others (1)				604				391
Adjusted EBITDA				$ 14,193				$	13,802

			December 31,			December 31,
			2023			2022
Short-term borrowings				$	1,968			$	5,637
Current portion of long-term debt				4,698				2,611
Long-term debt				41,243				34,875
Total Debt				$	47,909			$	43,123
Cash and cash equivalents				3,060				3,207
Net Debt				$	44,849			$	39,916

Ratios:
Total Debt to Adjusted EBITDA				3.38				3.12
Net Debt to Adjusted EBITDA				3.16				2.89

(1) For year ended December 31, 2023 "Others" includes South Korea indirect tax charge $204 million, $140 million related to Termination of agreement with Foundation for a Smoke-Free World, a reduction in revenues of $80 million related to the termination of distribution arrangement in the Middle East, $53 million of charges related to the war in Ukraine and $18 million of Swedish Match AB acquisition accounting related items. For year ended December 31, 2022 "Others" includes $151 million of charges related to the war in Ukraine, $115 million of costs associated with Swedish Match AB offer and $125 million for Swedish Match AB acquisition accounting related item.


								Schedule 16
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Operating Cash Flow to Operating Cash Flow, excluding Currency
($ in millions) / (Unaudited)

	Quarters Ended December 31,					Years Ended December 31,
	2023	2022	% Change			2023	2022	% Change
	$ 3,302	$ 3,093	6.8	%	Net cash provided by operating activities (1)	$ 9,204	$ 10,803	(14.8)	%
	(645)				Less: Currency	(1,297)
	$ 3,947	$ 3,093	27.6	%	Net cash provided by operating activities, excluding currency	$ 10,501	$ 10,803	(2.8)	%

(1) Operating cash flow


														Schedule 17
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,									Years Ended December 31,
2023	2022	Total	Var.		Currency	Var. excl. currency			2023	2022	Total	Var.		Currency	Var. excl. currency
								Total PMI
$ 9,047	$ 8,152	$ 895	11.0	%	$ (78)	11.9	%	Net Revenues	$ 35,174	$ 31,762	$ 3,412	10.7	%	$ (1,112)	14.2	%

—	—	—	—		—	—		Adjustments (1)	(80)	—	(80)	—		—	—

$ 9,047	$ 8,152	$ 895	11.0	%	$ (78)	11.9	%	Adjusted Net Revenues	$ 35,254	$ 31,762	$ 3,492	11.0	%	$ (1,112)	14.5	%

								Swedish Match
$ 682	$ 316	$ 366	+100%		$ —	+100%		Net Revenues	$ 2,496	$ 316	$ 2,180	+100%		$ —	+100%

								Total PMI excl. Swedish Match
$ 8,365	$ 7,836	$ 529	6.8	%	$ (78)	7.7	%	Adjusted Net Revenues	$ 32,758	$ 31,446	$ 1,312	4.2	%	$ (1,112)	7.7	%

								Pro Forma Swedish Match Financial Information




$ 682	$ 589	$ 93	15.7	%	$ (59)	25.7	%	Net Revenues	$ 2,496	$ 2,133	$ 363	17.0	%	$ (65)	20.1	%

$ 9,047	$ 8,425	$ 622	7.4	%	$ (137)	9.0	%	Combined Net Revenues	$ 35,254	$ 33,579	$ 1,675	5.0	%	$ (1,177)	8.5	%








(1) Reflects a reduction in net revenues related to the termination of distribution arrangement in the Middle East
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 the acquisition Note: Totals may not foot due to roundings

Document and Entity Information	Feb. 08, 2024
Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Feb. 08, 2024
Entity Registrant Name	Philip Morris International Inc.
Entity Central Index Key	0001413329
Amendment Flag	false
Entity Incorporation, State or Country Code	VA
Entity File Number	1-33708
Entity Tax Identification Number	13-3435103
Entity Address, Address Line One	677 Washington Blvd, Ste. 1100
Entity Address, City or Town	Stamford
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06901
City Area Code	203
Local Phone Number	905-2410
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Stock [Member]
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	PM
Security Exchange Name	NYSE
2.875% Notes due 2024 - 1 [Member]
Entity Information [Line Items]
Title of 12(b) Security	2.875% Notes due 2024
Trading Symbol	PM24
Security Exchange Name	NYSE
2.875% Notes due 2024 - 2 [Member]
Entity Information [Line Items]
Title of 12(b) Security	2.875% Notes due 2024
Trading Symbol	PM24C
Security Exchange Name	NYSE
0.625% Notes due 2024 [Member]
Entity Information [Line Items]
Title of 12(b) Security	0.625% Notes due 2024
Trading Symbol	PM24B
Security Exchange Name	NYSE
3.250% Notes due 2024 [Member]
Entity Information [Line Items]
Title of 12(b) Security	3.250% Notes due 2024
Trading Symbol	PM24A
Security Exchange Name	NYSE
2.750% Notes due 2025 [Member]
Entity Information [Line Items]
Title of 12(b) Security	2.750% Notes due 2025
Trading Symbol	PM25
Security Exchange Name	NYSE
3.375% Notes due 2025 [Member]
Entity Information [Line Items]
Title of 12(b) Security	3.375% Notes due 2025
Trading Symbol	PM25A
Security Exchange Name	NYSE
2.750% Notes due 2026 [Member]
Entity Information [Line Items]
Title of 12(b) Security	2.750% Notes due 2026
Trading Symbol	PM26A
Security Exchange Name	NYSE
2.875% Notes due 2026 [Member]
Entity Information [Line Items]
Title of 12(b) Security	2.875% Notes due 2026
Trading Symbol	PM26
Security Exchange Name	NYSE
0.125% Notes due 2026 [Member]
Entity Information [Line Items]
Title of 12(b) Security	0.125% Notes due 2026
Trading Symbol	PM26B
Security Exchange Name	NYSE
3.125% Notes due 2027 [Member]
Entity Information [Line Items]
Title of 12(b) Security	3.125% Notes due 2027
Trading Symbol	PM27
Security Exchange Name	NYSE
3.125% Notes due 2028 [Member]
Entity Information [Line Items]
Title of 12(b) Security	3.125% Notes due 2028
Trading Symbol	PM28
Security Exchange Name	NYSE
2.875% Notes due 2029 [Member]
Entity Information [Line Items]
Title of 12(b) Security	2.875% Notes due 2029
Trading Symbol	PM29
Security Exchange Name	NYSE
3.375% Notes due 2029 [Member]
Entity Information [Line Items]
Title of 12(b) Security	3.375% Notes due 2029
Trading Symbol	PM29A
Security Exchange Name	NYSE
0.800% Notes due 2031 [Member]
Entity Information [Line Items]
Title of 12(b) Security	0.800% Notes due 2031
Trading Symbol	PM31
Security Exchange Name	NYSE
3.125% Notes due 2033 [Member]
Entity Information [Line Items]
Title of 12(b) Security	3.125% Notes due 2033
Trading Symbol	PM33
Security Exchange Name	NYSE
2.000% Notes due 2036 [Member]
Entity Information [Line Items]
Title of 12(b) Security	2.000% Notes due 2036
Trading Symbol	PM36
Security Exchange Name	NYSE
1.875% Notes due 2037 [Member]
Entity Information [Line Items]
Title of 12(b) Security	1.875% Notes due 2037
Trading Symbol	PM37A
Security Exchange Name	NYSE
6.375% Notes due 2038 [Member]
Entity Information [Line Items]
Title of 12(b) Security	6.375% Notes due 2038
Trading Symbol	PM38
Security Exchange Name	NYSE
1.450% Notes due 2039 [Member]
Entity Information [Line Items]
Title of 12(b) Security	1.450% Notes due 2039
Trading Symbol	PM39
Security Exchange Name	NYSE
4.375% Notes due 2041 [Member]
Entity Information [Line Items]
Title of 12(b) Security	4.375% Notes due 2041
Trading Symbol	PM41
Security Exchange Name	NYSE
4.500% Notes due 2042 [Member]
Entity Information [Line Items]
Title of 12(b) Security	4.500% Notes due 2042
Trading Symbol	PM42
Security Exchange Name	NYSE
3.875% Notes due 2042 [Member]
Entity Information [Line Items]
Title of 12(b) Security	3.875% Notes due 2042
Trading Symbol	PM42A
Security Exchange Name	NYSE
4.125% Notes due 2043 [Member]
Entity Information [Line Items]
Title of 12(b) Security	4.125% Notes due 2043
Trading Symbol	PM43
Security Exchange Name	NYSE
4.875% Notes due 2043 [Member]
Entity Information [Line Items]
Title of 12(b) Security	4.875% Notes due 2043
Trading Symbol	PM43A
Security Exchange Name	NYSE
4.250% Notes due 2044 [Member]
Entity Information [Line Items]
Title of 12(b) Security	4.250% Notes due 2044
Trading Symbol	PM44
Security Exchange Name	NYSE

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