8-K

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): July 23, 2024

Philip Morris International Inc.

(Exact name of registrant as specified in its charter)

Virginia	1-33708	13-3435103
(State or other jurisdiction<br><br>of incorporation)	(Commission File Number)	(I.R.S. Employer<br><br>Identification No.)
677 Washington Blvd, Ste. 1100	Stamford	Connecticut	06901
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(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)
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☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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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	PM	New York Stock Exchange		0.625% Notes due 2024	PM24B	New York Stock Exchange
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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
3.750% Notes due 2031	PM31B	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).
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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.	☐
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Item 2.02.	Results of Operations and Financial Condition.
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On July 23, 2024, Philip Morris International Inc. (the “Company”) issued a press release announcing its financial results for the second quarter and the first half-year ended June 30, 2024, 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.
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99.1	Philip Morris International Inc. Press Release, dated July 23, 2024 (furnished pursuant to Item 2.02).
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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)
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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: June 23, 2024

Document

Exhibit 99.1

PRESS RELEASE

Philip Morris International Reports 2024 Second-Quarter and First-Half Results and Raises Full Year Guidance

Second-Quarter Reported Diluted EPS grew 52.5% to $1.54

Adjusted Diluted EPS decreased by 0.6% to $1.59; and grew by 10.6% excluding currency

STAMFORD, CT, July 23, 2024 – Philip Morris International Inc. (PMI) (NYSE: PM) today announces its 2024 second-quarter and first-half results.1

"The excellent momentum of our smoke-free business continued with an outstanding second-quarter and first-half performance" said Jacek Olczak, Chief Executive Officer.

“The powerful combination of excellent underlying performance and proactive measures across all categories enabled our business to outperform once again, and we are on track for a strong 2024. As a result, we are raising our full-year guidance, despite currency headwinds.”

Second Quarter Highlights

•Smoke-free business (SFB): The smoke-free business accounted for 38.1% of our total net revenues (up by 2.7pp versus second-quarter last year), with 36.5 million estimated adult users of our smoke-free products (up by 3.2 million versus December 2023), which are available in 90 markets. Our SFB continues to deliver superior performance, with net revenues increasing by 13.6% (18.3% organically) and gross profit increasing by 15.6% (22.2% organically).

•Inhalable smoke-free products (SFP): Total IQOS users at quarter-end were estimated at 30.8 million (up by 1.9 million versus December 2023), of which approximately 22.1 million had fully switched to IQOS and stopped smoking. The increase was broad-based, with notable gains in Japan following the launch of ILUMA i, as well as good progress in Europe (especially Greece, Hungary, Romania, Bulgaria, and Spain), South Korea, and low and middle income markets, notably Indonesia. Market share for HTUs in IQOS markets was up by 0.7pp to 8.1%. HTU adjusted in-market sales (IMS) volume, which excludes the net impact of estimated distributor and wholesaler inventory movements was up by an estimated 10.2%, in line with expectations.

•In Japan, IQOS HTU market share increased by more than 3 percentage points to over 29%, and offtake share exceeded 30% for the first time in June. TEREA and SENTIA were the #1 and #3 nicotine brands respectively in the quarter. Adjusted IMS grew by 12.5%, the 7th consecutive quarter of double-digit growth.

•In Europe, IQOS HTU adjusted market share increased by 0.8pp to 9.8% with adjusted IMS growth of 6.8%, which, as expected, was impacted by the EU characterizing flavor ban, especially in Italy.

In the vaping category, our focused strategy is showing promising early results, with VEEV taking the #1 position in the closed pod segment in 5 European markets within 12 months of launch.

1 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 July 23, 2024, and at www.pmi.com/2024Q2earnings.

•Oral SFP2: Shipment volume increased by 23.5% in cans (20.0% in pouches or pouch equivalents), fueled by ZYN nicotine pouch growth in the U.S., where shipments reached 135.1 million cans, representing growth of 50.3% versus prior year. ZYN, despite supply constraints, performed in-line with the U.S. nicotine pouch category in terms of consumer offtake. Outside of the U.S., our nicotine pouch volume grew by over 50% with promising results in a number of new markets, notably Pakistan.

•Combustibles: Net revenues grew by 1.2% (organically by 4.8%), driven by another quarter of high single-digit pricing and resilient industry volumes. After 7 consecutive quarters of gross margin contraction, profitability recovered in Q2 with very robust expansion of 40 bps (50 bps on an organic basis), primarily driven by pricing.

•Dividend: We declared a regular quarterly dividend of $1.30 per share, or an annualized $5.20 per share.

| Operating Review - Second Quarter | | --- || | Total | HTU | Oral SFP3 | Cigarettes | | --- | --- | --- | --- | --- | | Shipment Volume (units bn) | 197.3 | 35.5 | 4.2 | 157.6 | | vs. Q2 2023 | 2.8% | 13.1% | 20.0% | 0.4% | | | PMI | Combustibles | | --- | --- | --- | | Net Revenues ($ bn) | 9.5 | $5.9 | | reported vs. Q2 2023 | 5.6% | 1.2% | | organic vs. Q2 2023 | 9.6% | 4.8% | | Gross Profit ($ bn) | 6.1 | $3.8 | | reported vs. Q2 2023 | 6.7% | 1.8% | | organic vs. Q2 2023 | 11.5% | 5.5% | | Operating Income ($ bn) | 3.4 | | | reported vs. Q2 2023 | 34.2% | | | organic vs. Q2 2023 | 12.5% | |

All values are in US Dollars.

	Reported<br>Diluted<br>EPS	Adjusting<br>Items*	Adjusted<br>Diluted<br>EPS	Currency<br>Impact	Adjusted<br>Diluted<br>EPS ex. Currency
EPS	$1.54	$(0.05)	$1.59	$(0.18)	$1.77
vs. Q2 2023	52.5%		(0.6)%		10.6%
(*) For a list of adjusting items refer to page 19

2 Oral smoke-free products volume excludes snuff, snuff leaf and U.S. chew

3 In pouches or pouch equivalents

• 2 -

Full-Year Forecast
	Full-Year
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	2024<br>Forecast			2023
Reported Diluted EPS	$5.89	-	$6.01	5.02
Adjustments:
Asset impairment and exit costs	0.09			0.06
Termination of distribution arrangement in the Middle East	—			0.04
Impairment of goodwill and other intangibles	0.01			0.44
Amortization of intangibles(1)	0.43			0.25
Charges related to the war in Ukraine	—			0.03
Swedish Match AB acquisition accounting related items	—			0.01
Income tax impact associated with Swedish Match AB financing	0.09			(0.11)
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	(0.15)			(0.02)
Tax items	(0.03)			0.11
Total Adjustments	0.44			0.99
Adjusted Diluted EPS	$6.33	-	$6.45	6.01	-	7.3%
Less: Currency	(0.34)
Adjusted Diluted EPS, excluding currency	$6.67	-	$6.79	6.01	-	13.0%
(1) See forecast assumptions for details

All values are in US Dollars.

Reported diluted EPS is forecast to be in a range of $5.89 to $6.01, at prevailing exchange rates, versus reported diluted EPS of $5.02 in 2023. Excluding a total 2024 adjustment of $0.44 per share, this forecast represents a projected increase of 5.3% to 7.3% versus adjusted diluted EPS of $ 6.01 in 2023. Also excluding an adverse currency impact of $0.34, at prevailing exchange rates, this forecast represents a projected increase of 11.0% to 13.0% versus adjusted diluted EPS of $6.01 in 2023, as outlined in the above table.

2024 Full-Year Forecast Assumptions

This forecast assumes:

•A broadly stable total international industry volume for cigarettes and HTUs, excluding China and the U.S.;

•Total cigarette, HTU and oral smoke-free product shipment volume growth for PMI of 1% to 2% driven by smoke-free products;

•A second half acceleration in HTU adjusted IMS to deliver around 13% growth for the full year, and HTU shipment volumes of around 140 billion units. This assumes no volumes in Taiwan and a slightly greater impact from consumer adjustment to the EU characterizing flavor ban than previously assumed;

•Nicotine pouch shipment volume in the U.S. of 560 to 580 million cans;

•Net revenue growth of 7.5% to 9% on an organic basis;

•Organic operating income growth of 11% to 13%;

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

• 3 -

•Broadly unchanged net revenue and adjusted operating loss in Wellness and Healthcare segment compared to 2023;

•No earnings impact from the May 15, 2024 Fiscal Court in Dusseldorf ruling related to the legality of a supplemental tax surcharge on HTUs in Germany, which went into effect in 2022. On June 19, 2024, a German subsidiary of PMI submitted an appeal;

•Full-year amortization of acquired intangibles of $0.43 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;

•Net financing costs of approximately $1.3 billion;

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

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

•Capital expenditures of approximately $1.3 to $1.4 billion, including further 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 second-half performance, with third quarter adjusted diluted EPS of $1.77 to $1.82 including an estimated adverse currency impact of 2 cents at prevailing exchange rates.

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

Conference Call

A conference call hosted by Emmanuel Babeau, Chief Financial Officer, will be webcast at 9:00 a.m., Eastern Time, on July 23, 2024. Access the webcast at www.pmi.com/2024Q2earnings.

Investor Relations:	Media:
Stamford, CT: +1 (203) 905 2413	Lausanne: +41 582 424 500
Lausanne, Switzerland: +41 582 424 666	Email: David.Fraser@pmi.com
Email: InvestorRelations@pmi.com
Financial Review
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TOTAL MARKET, CONSOLIDATED SHIPMENT VOLUME & MARKET SHARE

Total Market Volume

Second-Quarter

Estimated international industry volume (excluding China and the U.S.) for cigarettes and HTUs increased by 1.5%, reflecting increases in the SSEA, CIS & MEA Region, partly offset by decreases in the Europe, Americas and EA, AU & PMI DF Regions, as described in the Regional sections below.

• 4 -

Six Months Year-to-Date

Estimated international industry volume (excluding China and the U.S.) for cigarettes and HTUs increased by 1.1%, reflecting increase in the SSEA, CIS & MEA Region, partly offset by decreases in the Europe and Americas Regions, and broadly stable in the EA, AU & PMI DF Region, as described in the Regional sections below.

Consolidated Shipment Volume

PMI Cigarettes and HTUs	Second-Quarter				Six Months Year-to-Date
(million units)	2024	2023	Change		2024	2023	Change
Cigarettes	157,618	157,010	0.4	%	300,809	300,718	—	%
Heated Tobacco Units	35,544	31,424	13.1	%	68,678	58,820	16.8	%
Total Cigarettes and HTUs	193,162	188,434	2.5	%	369,487	359,538	2.8	%
PMI Oral SFP(1)	Second-Quarter				Six Months Year-to-Date
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(million cans)	2024	2023	Change		2024	2023	Change
Nicotine Pouches	149.9	99.5	50.6	%	295.6	180.7	63.5	%
Snus	58.8	62.6	(6.2)	%	120.2	118.2	1.7	%
Moist Snuff	34.2	34.1	0.2	%	68.6	69.3	(1.1)	%
Other Oral SFP(2)	1.0	1.2	(17.0)	%	2.0	2.5	(16.8)	%
Total Oral SFP	243.8	197.4	23.5	%	486.4	370.7	31.2	%
(1) Excluding snuff, snuff leaf and U.S. chew
(2) Includes chew bags and tobacco bits
Note: Sum may not foot due to roundings.

Second-Quarter

PMI's total cigarette and HTU shipment volume increased by 2.5% (HTU shipments increased by 13.1%, and cigarette shipments increased by 0.4%), with increases across all regions except the Americas.

PMI’s total oral product shipment volume in cans increased by 23.5%, predominantly reflecting growth in nicotine pouches.

Adjusted in-market sales for HTUs increased by 10.2%, including growth in Japan of 12.5% and Europe of 6.8%.

Six Months Year-to-Date

PMI's total cigarette and HTU shipment volume increased by 2.8% (HTU shipments increased by 16.8%, while cigarette shipments were stable).

PMI’s total oral product shipment volume in cans increased by 31.2%, primarily reflecting growth in nicotine pouches.

Adjusted in-market sales for HTUs increased by 11.4%, including growth in Japan of 12.9% and Europe of 8.0%. A net favorable impact of estimated distributor inventory movements for HTU shipments was driven most significantly by additional shipments to Japan in light of disruption to Red Sea shipping routes.

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International Share of Market - Cigarettes and HTUs

		Second-Quarter								Six Months Year-to-Date
	2024		2023			Change (pp)			2024		2023			Change (pp)
Total International Market Share(1)		28.7		%	28.6		%	0.1		28.3		%	27.9		%	0.4
Cigarettes		23.6		%	24.0		%	(0.4)		23.2		%	23.4		%	(0.2)
HTU		5.1		%	4.7		%	0.4		5.1		%	4.6		%	0.5
Cigarette over Cigarette Market Share(2)		25.3		%	25.5		%	(0.2)		24.9		%	24.9		%	—
(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.

CONSOLIDATED FINANCIAL SUMMARY

Second-Quarter

Financial Summary - Quarters Ended June 30,					Change<br>Fav./(Unfav.)				Variance<br>Fav./(Unfav.)
				Total		Excl.<br>Curr. & Acquis.		Total		Cur-<br>rency		Acqui-sitions		Price		Vol/<br>Mix		Cost/<br>Other
(in millions)
Net Revenues	9,468		8,967		5.6%		9.6%		501		(358)		—		583		303		(27)
Cost of Sales(1)	(3,345)		(3,228)		(3.6)%		(5.9)%		(117)		63		12		—		(145)		(47)
Marketing, Administration and Research Costs(2)	(2,679)		(2,508)		(6.8)%		(5.4)%		(171)		(36)		—		—		—		(135)
Impairment of Goodwill	—		(665)		+100%		+100%		665		—		—		—		—		665
Operating Income	3,444		2,566		34.2%		46.6%		878		(331)		12		583		158		456
Impairment of Goodwill and Other Intangibles (3)	—		(680)		+100%		+100%		680		—		—		—		—		680
Amortization of Intangibles	(212)		(82)		-(100)%		-(100)%		(130)		—		—		—		—		(130)
South Korea Indirect Tax Charge	—		(204)		+100%		+100%		204		—		—		—		—		204
Adjusted Operating Income	3,656		3,532		3.5%		12.5%		124		(331)		12		583		158		(298)
Adjusted Operating Income Margin	38.6	%	39.4		(0.8)pp		1.1pp
(1) Includes 16 million in 2024 and 22 million in 2023 related to the special items below.
(2) Includes 196 million in 2024 and 279 million in 2023 related to the special items below.
(3) Includes 665 million impairment of goodwill in 2023

All values are in US Dollars.

Net revenues increased by 9.6% on an organic basis, mainly reflecting: a favorable pricing variance, primarily due to higher combustible tobacco pricing; and favorable volume/mix, driven by higher smoke-free products volume.

Adjusted operating income increased by 12.5% on an organic basis, mainly reflecting: the favorable pricing variance; and favorable volume/mix, mainly driven by smoke-free products volume, notwithstanding unfavorable cigarette mix; partly offset by higher costs, predominantly marketing, administration and research costs.

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Six Months Year-to-Date

Financial Summary - Six Months Ended June 30,					Change<br>Fav./(Unfav.)						Variance<br>Fav./(Unfav.)
				Total		Excl.<br>Curr. & Acquis				Total		Cur-<br>rency		Acqui-sitions		Price		Vol/<br>Mix		Cost/<br>Other
(in millions)
Net Revenues	18,261		16,986		7.5		%	10.8	%		1,275		(552)		—		1,032		767		28
Termination of distribution arrangement in the Middle East	—		(80)		+100%			+100%			80		—		—		—		—		80
Adjusted Net Revenues	18,261		17,066		7.0		%	10.2	%		1,195		(552)		—		1,032		767		(52)
Net Revenues	18,261		16,986		7.5		%	10.8	%		1,275		(552)		—		1,032		767		28
Cost of Sales (1)	(6,540)		(6,266)		(4.4)		%	(5.7)	%		(274)		71		12		—		(314)		(43)
Marketing, Administration and Research Costs (2)	(5,232)		(4,758)		(10.0)		%	(6.2)	%		(474)		(178)		—		—		—		(296)
Impairment of Goodwill	—		(665)		+100%			+100%			665		—		—		—		—		665
Operating Income	6,489		5,297		22.5		%	34.7	%		1,192		(659)		12		1,032		453		354
Asset Impairment & Exit Costs	(168)		(109)		(54.1)		%	(54.1)	%		(59)		—		—		—		—		(59)
Termination of distribution arrangement in the Middle East (3)	—		(80)		+100%			+100%			80		—		—		—		—		80
Impairment of Goodwill and Other Intangibles (4)	(27)		(680)		96.0		%	96.0	%		653		—		—		—		—		653
Amortization of Intangibles	(332)		(163)		-(100)%			-(100)%			(169)		—		—		—		—		(169)
Swedish Match AB acquisition accounting related items	—		(18)		+100%			+100%			18		—		—		—		—		18
South Korea Indirect Tax Charge	—		(204)		+100%			+100%			204		—		—		—		—		204
Adjusted Operating Income	7,016		6,551		7.1		%	17.0	%		465		(659)		12		1,032		453		(373)
Adjusted Operating Income Margin	38.4	%	38.4		—pp			2.3pp
(1) Includes 32 million in 2024 and 62 million in 2023 related to the special items below.
(2) Includes 495 million in 2024 and 447 million in 2023 related to the special items below.
(3) Included in Net Revenues above.
(4) Includes 665 million impairment of goodwill in 2023.

All values are in US Dollars.

Adjusted net revenues increased by 10.2% on an organic basis, mainly reflecting: a favorable pricing variance, primarily driven by higher combustible tobacco pricing; and favorable volume/mix, driven by higher smoke-free products volume, partly offset by unfavorable cigarette mix.

Adjusted operating income increased by 17.0% on an organic basis, mainly reflecting: the favorable pricing variance, predominantly driven by higher combustible tobacco pricing; and favorable volume/mix, mainly driven by higher smoke-free products volume; partly offset by higher marketing, administration and research costs (primarily due to inflationary impacts, notably related to wages, and higher commercial investments), as well as

• 7 -

higher manufacturing costs (primarily due to inflationary impacts, notably related to tobacco leaf and the impact of the EU single-use plastics directive, partly offset by productivity).

EUROPE REGION

Total Market, PMI Shipment & Market Share Commentaries

Second-Quarter

The estimated total market for cigarettes and HTUs in the Region decreased by 1.7% to 138.0 billion units, reflecting a 2.8% decline for cigarettes, partly offset by an increase for HTUs. The decrease in the estimated total market was predominantly due to France (down by 11.4%), the UK (down by 15.4%), Germany (down by 3.3%), and the Netherlands (down by 20.7%), partly offset by Bulgaria (up by 10.6%), Romania (up by 5.0%), and Greece (up by 8.3%).

Six Months Year-to-Date

The estimated total market for cigarettes and HTUs in the Region decreased by 1.2% to 262.1 billion units, reflecting a 2.6% decline for cigarettes, partly offset by an increase for HTUs. The decrease in the estimated total market was predominantly due to France (down by 13.8%), the UK (down by 13.3%), and the Netherlands (down by 15.5%), partly offset by Bulgaria (up by 9.7%), Poland (up by 2.3%), Romania (up by 3.9%), and Greece (up by 7.1%).

Europe Key Data	Second-Quarter						Six Months Year-to-Date
					Change						Change
	2024		2023		% / pp		2024		2023		% / pp
PMI Shipment Volume (million units)
Cigarettes	43,467		43,741		(0.6)	%	80,556		82,898		(2.8)	%
Heated Tobacco Units	12,935		11,705		10.5	%	24,275		21,804		11.3	%
Total Europe	56,402		55,446		1.7	%	104,831		104,702		0.1	%
PMI Market Share
Cigarettes	30.2	%	30.3	%	(0.1)		30.1	%	30.3	%	(0.2)
Heated Tobacco Units	9.6	%	8.8	%	0.8		9.8	%	8.9	%	0.9
Total Europe	39.8	%	39.1	%	0.7		40.0	%	39.2	%	0.8
Note: Sum may not foot due to roundings.														Europe Oral SFP	Second-Quarter				Six Months Year-to-Date
---	---	---	---	---	---	---	---	---
	2024	2023	Change		2024	2023	Change
PMI Shipment Volume (million cans)
Nicotine Pouches	11.8	9.3	26.9	%	24.1	17.2	40.2	%
Snus	58.0	61.4	(5.6)	%	118.7	115.8	2.5	%
Other Oral SFP(1)	1.0	1.2	(17.0)	%	2.0	2.5	(16.8)	%
Total Europe	70.8	71.9	(1.6)	%	144.8	135.4	6.9	%
(1) Includes chew bags and tobacco bits
Note: Sum may not foot due to roundings.

• 8 -

Second-Quarter

PMI's total cigarette and HTU shipment volume in the Region increased by 1.7% to 56.4 billion units. Total cigarette and HTU shipment volume increased notably in Italy (up by 7.6%), mainly driven by cigarettes, and Poland (up by 6.0%), and decreased notably in France (down by 11.7%) and the Netherlands (down by 19.5%), both driven by cigarettes.

PMI's estimated HTU adjusted in-market sales volume in the Region increased by 6.8% in the quarter, reflecting continued growth momentum for IQOS, partly offset by the impact from the EU characterizing flavor ban.

PMI's HTU share of the total cigarette and HTU market in the Region increased by 0.8 points on an adjusted basis.

Oral SFP shipments decreased by 1.6% with decline of snus (down by 5.6%), partly offset by nicotine pouches (up by 26.9%).

Six Months Year-to-Date

PMI's total cigarette and HTU shipment volume in the Region increased by 0.1% to 104.8 billion units. Total cigarette and HTU shipment volume increased notably in Poland (up by 7.9%), Greece (up by 9.6%), and Germany (up by 1.9%), and decreased notably in France (down by 21.7%) and the Netherlands (down by 15.2%), both driven by cigarettes.

PMI's estimated HTU adjusted in-market sales volume in the Region increased by 8.0%, reflecting continued growth momentum for IQOS, partly offset by the impact from the EU characterizing flavor ban.

PMI's HTU share of the total cigarette and HTU market in the Region increased by 0.9 points on an adjusted basis.

Oral SFP shipments increased by 6.9%, driven by growth of nicotine pouches (up by 40.2%) and snus (up by 2.5%).

Financial Summary

Second-Quarter

Financial Summary - Quarters Ended <br>June 30,						Change<br>Fav./(Unfav.)				Variance<br>Fav./(Unfav.)
	2024				Total		Excl.<br>Curr. & Acquis.		Total		Cur-<br>rency		Acqui-sitions		Price		Vol/<br>Mix		Cost/<br>Other
(in millions)
Net Revenues		3,815		3,574		6.7%		7.0%		241		(9)		—		205		45		—
Operating Income		1,660		1,619		2.5%		5.3%		41		(45)		—		205		2		(121)
Adjustments (1)		(40)		(28)		(41.8)%		(41.8)%		(12)		—		—		—		—		(12)
Adjusted Operating Income		1,701		1,647		3.3%		6.0%		54		(45)		—		205		2		(109)
Adjusted Operating Income Margin		44.6	%	46.1		(1.5)pp		(0.4)pp
(1) See Schedule 10 in Exhibit 99.2 to the Form 8-K dated July 23, 2024, for additional detail.

All values are in US Dollars.

• 9 -

Net revenues increased by 7.0% 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, partly offset by lower cigarettes volume.

Adjusted operating income increased by 6.0% on an organic basis, reflecting: a favorable pricing variance, mainly driven by higher combustible tobacco pricing; partly offset by higher marketing, administration and research costs as well as manufacturing costs, including the impact of the EU single-use plastics directive.

Six Months Year-to-Date

Financial Summary - <br>Six Months Ended <br>June 30,						Change<br>Fav./(Unfav.)						Variance<br>Fav./(Unfav.)
	2024				Total		Excl.<br>Curr. & Acquis.				Total		Cur-<br>rency		Acqui-sitions		Price		Vol/<br>Mix		Cost/<br>Other
(in millions)
Net Revenues		7,180		6,642		8.1		%	7.1	%		538		69		—		368		101		—
Operating Income		3,116		2,834		10.0		%	11.0	%		282		(31)		—		368		66		(121)
Adjustments (1)		(80)		(103)		22.0		%	22.0	%		23		—		—		—		—		23
Adjusted Operating Income		3,197		2,937		8.9		%	9.9	%		260		(31)		—		368		66		(143)
Adjusted Operating Income Margin		44.5	%	44.2		0.3pp			1.2pp
(1) See Schedule 11 in Exhibit 99.2 to the Form 8-K dated July 23, 2024, for additional detail.

All values are in US Dollars.

Net revenues increased by 7.1% on an organic basis, primarily driven by the same factors as for the quarter.

Adjusted operating income increased by 9.9% 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, notwithstanding lower cigarette volume; partly offset by higher marketing, administration and research costs as well as manufacturing costs, including the impact of the EU single-use plastics directive.

SSEA, CIS & MEA REGION

Total Market, PMI Shipment & Market Share Commentaries

Second-Quarter

The estimated total market for cigarettes and HTUs in the Region increased by 3.7% to 393.9 billion units. The increase in the estimated total market was mainly due to Russia (up by 6.2%), Pakistan (up by 42.4%), Egypt (up by 18.6%), Bangladesh (up by 8.5%), and Turkey (up by 4.1%), partly offset by Thailand (down by 19.5%) and Kazakhstan (down by 8.8%).

Six Months Year-to-Date

The estimated total market for cigarettes and HTUs in the Region increased by 2.5% to 767.0 billion units. The increase in the estimated total market was mainly due to Turkey (up by 10.3%), Russia (up by 5.3%), Indonesia (up by 3.1%), and Bangladesh (up by 6.5%), partly offset by Thailand (down by 14.1%) and Philippines (down by 7.9%).

• 10 -

PMI Shipment Volume	Second-Quarter				Six Months Year-to-Date
(million units)	2024	2023	Change		2024	2023	Change
Cigarettes	87,391	84,415	3.5	%	167,582	160,946	4.1	%
Heated Tobacco Units	6,937	5,853	18.5	%	13,015	11,300	15.2	%
Total SSEA, CIS & MEA	94,328	90,268	4.5	%	180,597	172,246	4.8	%

Second-Quarter

PMI's total cigarette and HTU shipment volume in the Region increased by 4.5% to 94.3 billion units, mainly driven by Turkey (up by 9.7%) and Saudi Arabia (up by 68.9% due to inventory movements), partly offset by Indonesia (down by 6.4%), Thailand (down by 24.9%) and the Philippines (down by 9.7%). PMI's estimated HTU adjusted in-market sales volume increased by 11.4%, with 18.5% HTU shipment volume growth. HTU shipment growth in Russia primarily reflects timing and cross-border dynamics, with limited underlying growth.

Six Months Year-to-Date

PMI's total cigarette and HTU shipment volume in the Region increased by 4.8% to 180.6 billion units, mainly driven by Turkey (up by 16.0%), partly offset by the Philippines (down by 14.2%). PMI's estimated HTU adjusted in-market sales volume increased by 13.1%, with 15.2% HTU shipment volume growth.

Financial Summary

Second-Quarter

Financial Summary - Quarters Ended <br>June 30,						Change<br>Fav./(Unfav.)				Variance<br>Fav./(Unfav.)
	2024				Total		Excl.<br>Curr. & Acquis.		Total		Cur-<br>rency		Acqui-sitions		Price		Vol/<br>Mix		Cost/<br>Other
(in millions)
Net Revenues		2,771		2,668		3.9%		13.3%		103		(251)		—		229		123		2
Operating Income		891		880		1.3%		26.0%		11		(230)		12		229		50		(50)
Adjustments (1)		(5)		(5)		6.8%		6.8%		—		—		—		—		—		—
Adjusted Operating Income		896		885		1.2%		25.9%		11		(230)		12		229		50		(50)
Adjusted Operating Income Margin		32.3	%	33.2		(0.9)pp		3.7pp
(1) See Schedule 10 in Exhibit 99.2 to the Form 8-K dated July 23, 2024, for additional detail.

All values are in US Dollars.

Net revenues increased by 13.3% 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 and cigarettes volume, as well as favorable HTU and cigarette mix.

Adjusted operating income increased by 25.9% on an organic basis, primarily reflecting: a favorable pricing variance, mainly driven by higher combustible tobacco pricing; and favorable volume/mix, driven by higher smoke-free products and cigarettes volume, notwithstanding unfavorable cigarette mix; partly offset by higher manufacturing costs (primarily due to higher cost of tobacco leaf).

• 11 -

Six Months Year-to-Date

Financial Summary - Six Months Ended June 30,						Change<br>Fav./(Unfav.)						Variance<br>Fav./(Unfav.)
	2024				Total		Excl.<br>Curr. & Acquis.				Total		Cur-<br>rency		Acqui-sitions		Price		Vol/<br>Mix		Cost/<br>Other
(in millions)
Net Revenues		5,429		5,145		5.5		%	14.2	%		284		(445)		—		384		267		78
Adjustment (1)		—		(80)		+100%			+100%			80		—		—		—		—		80
Adjusted Net Revenues		5,429		5,225		3.9		%	12.4	%		204		(445)		—		384		267		(2)
Net Revenues		5,429		5,145		5.5		%	14.2	%		284		(445)		—		384		267		78
Operating Income		1,663		1,614		3.0		%	31.5	%		49		(471)		12		384		96		28
Adjustments (2)		(10)		(122)		92.1		%	92.1	%		112		—		—		—		—		112
Adjusted Operating Income		1,673		1,736		(3.6)		%	22.8	%		(63)		(471)		12		384		96		(84)
Adjusted Operating Income Margin		30.8	%	33.2		(2.4)pp			3.1pp
(1) Termination of distribution arrangement in the Middle East.
(2) See Schedule 11 in Exhibit 99.2 to the Form 8-K dated July 23, 2024, for additional detail.

All values are in US Dollars.

Adjusted net revenues increased by 12.4% on an organic basis, primarily reflecting: a favorable pricing variance, mainly driven by higher combustible tobacco pricing; and favorable volume/mix, driven by higher cigarette and HTU volume and favorable cigarettes mix.

Adjusted operating income increased by 22.8% on an organic basis, primarily reflecting: a favorable pricing variance, mainly driven by higher combustible tobacco pricing; and favorable volume/mix, driven by higher cigarette and HTU volume, notwithstanding unfavorable cigarette mix; partly offset by higher manufacturing costs (primarily due to higher cost of tobacco leaf).

EA, AU AND PMI DF REGION

Total Market, PMI Shipment & Market Share Commentaries

Second-Quarter

The estimated total market for cigarettes and HTUs in the Region, excluding China, decreased by 0.7% to 80.2 billion units, with a decline in cigarettes, partly offset by HTU growth. The decrease in the estimated total market was mainly driven by Australia (down by 29.1%), South Korea (down by 1.9%), and Taiwan (down by 4.2%), partly offset by International Duty Free (up by 8.5%) and Japan (up by 0.9%).

Six Months Year-to-Date

The estimated total market for cigarettes and HTUs in the Region, excluding China, was stable at 156.0 billion units, with HTU growth partly offset by a decline in cigarettes. The increase in the estimated total market was mainly driven by International Duty Free (up by 12.4%) and Japan (up by 1.0%), partly offset by Australia (down by 29.4%).

• 12 -

PMI Shipment Volume	Second-Quarter				Six Months Year-to-Date
(million units)	2024	2023	Change		2024	2023	Change
Cigarettes	11,872	13,351	(11.1)	%	23,440	26,461	(11.4)	%
Heated Tobacco Units	15,474	13,714	12.8	%	31,073	25,462	22.0	%
Total EA, AU & PMI DF	27,346	27,065	1.0	%	54,513	51,923	5.0	%

Second-Quarter

PMI's total cigarette and HTU shipment volume in the Region increased by 1.0% to 27.3 billion units, driven by Japan (up by 5.0%), partly offset by Australia (down by 28.5%).

PMI's estimated HTU adjusted in-market sales volume in the Region increased by 13.3% in the quarter, including growth in Japan of 12.5%.

Six Months Year-to-Date

PMI's total cigarette and HTU shipment volume in the Region increased by 5.0% to 54.5 billion units, driven by Japan (up by 12.6%), partly offset by Australia (down by 27.2%).

PMI's estimated HTU adjusted in-market sales volume in the Region increased by 14.1%, including growth in Japan of 12.9%.

Financial Summary

Second-Quarter

Financial Summary - Quarters Ended <br>June 30,						Change<br>Fav./(Unfav.)				Variance<br>Fav./(Unfav.)
	2024				Total		Excl.<br>Curr. & Acquis.		Total		Cur-<br>rency		Acqui-sitions		Price		Vol/<br>Mix		Cost/<br>Other
(in millions)
Net Revenues		1,673		1,680		(0.4)%		6.7%		(7)		(120)		—		88		25		—
Operating Income		753		557		35.2%		51.5%		196		(91)		—		88		2		197
Adjustments (1)		(1)		(205)		99.7%		99.7%		204		—		—		—		—		204
Adjusted Operating Income		753		762		(1.2)%		10.8%		(9)		(91)		—		88		2		(7)
Adjusted Operating Income Margin		45.0	%	45.4		(0.4)pp		1.7pp
(1) See Schedule 10 in Exhibit 99.2 to the Form 8-K dated July 23, 2024, for additional detail.

All values are in US Dollars.

Net revenues increased by 6.7% on an organic basis, reflecting: a favorable pricing variance and favorable volume/mix, mainly driven by higher HTU volume, partly offset by lower cigarette volume.

Adjusted operating income increased by 10.8% on an organic basis, primarily driven by the same factors as for net revenues.

• 13 -

Six Months Year-to-Date

Financial Summary - Six Months Ended June 30,						Change<br>Fav./(Unfav.)						Variance<br>Fav./(Unfav.)
	2024				Total		Excl.<br>Curr. & Acquis.				Total		Cur-<br>rency		Acqui-sitions		Price		Vol/<br>Mix		Cost/<br>Other
(in millions)
Net Revenues		3,357		3,200		4.9		%	12.1	%		157		(229)		—		218		168		—
Operating Income		1,516		1,194		27.0		%	45.1	%		322		(216)		—		218		74		246
Adjustments (1)		(1)		(225)		99.3		%	99.3	%		224		—		—		—		—		224
Adjusted Operating Income		1,517		1,419		6.9		%	22.1	%		98		(216)		—		218		74		23
Adjusted Operating Income Margin		45.2	%	44.3		0.9pp			4.0pp
(1) See Schedule 11 in Exhibit 99.2 to the Form 8-K dated July 23, 2024, for additional detail.

All values are in US Dollars.

Net revenues increased by 12.1% on an organic basis, reflecting: a favorable pricing variance and favorable volume/mix, mainly driven by higher HTU volume, partly offset by lower cigarette volume.

Adjusted operating income increased by 22.1% on an organic basis, primarily driven by the same factors as for net revenues.

AMERICAS REGION

Total Market, PMI Shipment & Market Share Commentaries

Second-Quarter

The estimated total market for cigarettes and HTUs in the Region, excluding the U.S., decreased by 2.7% to 45.2 billion units, primarily reflecting a decline for cigarettes. The decrease in the estimated total market was mainly due to Argentina (down by 20.0%) and Canada (down by 12.6%), partly offset by Brazil (up by 9.6%).

Six Months Year-to-Date

The estimated total market for cigarettes and HTUs in the Region, excluding the U.S., decreased by 2.8% to 89.9 billion units, primarily reflecting a decline for cigarettes. The decrease in the estimated total market was mainly due to Argentina (down by 13.8%) and Canada (down by 12.9%), partly offset by Brazil (up by 6.5%).

PMI Shipment Volume	Second-Quarter				Six Months Year-to-Date
(million units)	2024	2023	Change		2024	2023	Change
Cigarettes	14,888	15,503	(4.0)	%	29,231	30,413	(3.9)	%
Heated Tobacco Units	198	152	30.3	%	315	254	24.0	%
Total Americas	15,086	15,655	(3.6)	%	29,546	30,667	(3.7)	%
Note: Sum may not foot due to roundings.

• 14 -

Americas Oral SFP1	Second-Quarter				Six Months Year-to-Date
	2024	2023	Change		2024	2023	Change
PMI Shipment Volume (million cans)
Nicotine Pouches	135.1	89.9	50.3	%	266.7	163.1	63.5	%
Moist Snuff	34.2	34.1	0.2	%	68.6	69.3	(1.1)	%
Snus	0.8	1.2	(37.3)	%	1.5	2.4	(38.4)	%
Total Americas	170.1	125.2	35.8	%	336.7	234.8	43.4	%
(1) Excluding U.S. chew<br>Note: Sum may not foot due to roundings.

Second-Quarter

PMI's total cigarette and HTU shipment volume in the Region decreased by 3.6% to 15.1 billion units, mainly due to Argentina (down by 19.9%), partly offset by Brazil (up by 8.7%).

Oral products shipments increased by 35.8%, driven by ZYN nicotine pouches (up by 50.3%) in the U.S.

Six Months Year-to-Date

PMI's total cigarette and HTU shipment volume in the Region decreased by 3.7% to 29.5 billion units, mainly due to Argentina (down by 14.7%), partly offset by Brazil (up by 9.4%).

Cigar shipment volume declined by 18.3%, predominantly due to a tough comparison related to trade inventory movements in the prior-year around the April 2023 price increase. Gross profit grew robustly.

Oral products shipments increased by 43.4%, driven by ZYN nicotine pouches (up by 63.5%) in the U.S.

Financial Summary

Second-Quarter

Financial Summary - Quarters Ended <br>June 30,						Change<br>Fav./(Unfav.)				Variance<br>Fav./(Unfav.)
	2024				Total		Excl.<br>Curr. & Acquis.		Total		Cur-<br>rency		Acqui-sitions		Price		Vol/<br>Mix		Cost/<br>Other
(in millions)
Net Revenues		1,129		969		16.5%		14.2%		160		22		—		55		110		(27)
Operating Income		183		243		(24.7)%		(39.1)%		(60)		35		—		55		104		(254)
Adjustments (1)		(152)		(33)		-(100)%		-(100)%		(119)		—		—		—		—		(119)
Adjusted Operating Income		335		276		21.4%		8.7%		59		35		—		55		104		(135)
Adjusted Operating Income Margin		29.7	%	28.5		1.2pp		(1.4)pp
(1) See Schedule 10 in Exhibit 99.2 to the Form 8-K dated July 23, 2024, for additional detail.

All values are in US Dollars.

Net revenues increased by 14.2% on an organic basis, primarily reflecting: favorable volume/mix, mainly due to the growth of ZYN nicotine pouches in the U.S., partly offset by lower cigarette volume and unfavorable cigarette mix outside of the U.S.; and favorable pricing variance, predominantly driven by higher combustible tobacco pricing.

• 15 -

Adjusted operating income increased by 8.7% on an organic basis, mainly reflecting: favorable volume/mix and price variance, mainly due to the same factors as for net revenues; partly offset by higher marketing and administration costs, including incremental investment in the U.S.

Six Months Year-to-Date

Financial Summary - <br>Six Months Ended <br>June 30,						Change<br>Fav./(Unfav.)						Variance<br>Fav./(Unfav.)
	2024				Total		Excl.<br>Curr. & Acquis.				Total		Cur-<br>rency		Acqui-sitions		Price		Vol/<br>Mix		Cost/<br>Other
(in millions)
Net Revenues		2,125		1,837		15.7		%	12.9	%		288		51		—		54		231		(48)
Operating Income		282		426		(33.8)		%	(47.2)	%		(144)		57		—		54		217		(472)
Adjustments (1)		(379)		(95)		-(100)%			-(100)%			(284)		—		—		—		—		(284)
Adjusted Operating Income		661		521		26.9		%	15.9	%		140		57		—		54		217		(188)
Adjusted Operating Income Margin		31.1	%	28.4		2.7pp			0.7pp
(1) See Schedule 11 in Exhibit 99.2 to the Form 8-K dated July 23, 2024, for additional detail.

All values are in US Dollars.

Net revenues increased by 12.9% on an organic basis, primarily reflecting: favorable volume/mix, mainly due to growth of ZYN nicotine pouches in the U.S., partly offset by cigarette volume declines outside of the U.S.; and favorable cigarette pricing.

Adjusted operating income increased by 15.9% on an organic basis, mainly reflecting: favorable volume/mix, mainly due to the same factors as for net revenues; and favorable cigarette pricing; partly offset by higher marketing and administration costs, including incremental investment in the U.S.

WELLNESS AND HEALTHCARE

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

Second-Quarter

Financial Summary - Quarters Ended <br>June 30,						Change<br>Fav./(Unfav.)						Variance<br>Fav./(Unfav.)
	2024				Total		Excl.<br>Curr. & Acquis.				Total		Cur-<br>rency		Acqui-sitions		Price		Vol/<br>Mix		Cost/<br>Other
(in millions)
Net Revenues		80		76		5.3		%	5.3	%		4		—		—		6		—		(2)
Operating Income / (Loss)		(43)		(733)		94.1		%	94.1	%		690		—		—		6		—		684
Adjustments (1)		(14)		(695)		97.9		%	97.9	%		681		—		—		—		—		681
Adjusted Operating Income / (Loss)		(29)		(38)		23.7		%	23.7	%		9		—		—		6		—		3
Adjusted Operating Income / (Loss) Margin		(36.3)	%	(50.0)		13.7pp			13.7pp
(1) See Schedule 10 in Exhibit 99.2 to the Form 8-K dated July 23, 2024, for additional detail.

All values are in US Dollars.

• 16 -

Net revenues increased by 5.3% on an organic basis. The adjusted operating loss of $29 million was primarily due to R&D and administration costs.

Six Months Year-to-Date

Financial Summary - Six Months Ended<br>June 30,						Change<br>Fav./(Unfav.)						Variance<br>Fav./(Unfav.)
	2024				Total		Excl.<br>Curr. & Acquis.				Total		Cur-<br>rency		Acqui-sitions		Price		Vol/<br>Mix		Cost/<br>Other
(in millions)
Net Revenues		170		162		4.9		%	3.7	%		8		2		—		8		—		(2)
Operating Income / (Loss)		(88)		(771)		88.6		%	88.3	%		683		2		—		8		—		673
Adjustments (1)		(56)		(709)		92.1		%	92.1	%		653		—		—		—		—		653
Adjusted Operating Income / (Loss)		(32)		(62)		48.4		%	45.2	%		30		2		—		8		—		20
Adjusted Operating Income / (Loss) Margin		(18.8)	%	(38.3)		19.5pp			18.1pp
(1) See Schedule 11 in Exhibit 99.2 to the Form 8-K dated July 23, 2024, for additional detail.

All values are in US Dollars.

Net revenues increased by 3.7% on an organic basis. The adjusted operating loss of $32 million was primarily due to R&D and administration costs.

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 over $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 devices and consumables and Swedish Match’s General snus as Modified Risk Tobacco Products and renewal applications for these products are presently pending before the FDA. As of June 30, 2024, PMI's smoke-free products were available for sale in 90 markets, and PMI estimates that 36.5 million adults around the world use PMI's smoke-free products. Smoke-free business accounted for approximately 38% of PMI’s total first-half 2024 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.

• 17 -

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 and/or nicotine 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 natural disasters and pandemics on PMI's business; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations, and limitations on the ability to repatriate funds; 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. PMI's future profitability may also be adversely affected should it be unsuccessful in its attempts to introduce, commercialize, and grow smoke-free products or if regulation or taxation do not differentiate between such products and cigarettes; if it is unable to successfully introduce new products, promote brand equity, enter new markets or improve its margins through increased prices and productivity gains; if it is unable to expand its brand portfolio internally or through acquisitions and the development of strategic business relationships; if it is unable to attract and retain the best global talent, including women or diverse candidates; or if it is unable to successfully integrate and realize the expected benefits from recent transactions and acquisitions. Future results are also subject to the lower predictability of our smoke-free products performance.

PMI is further subject to other risks detailed from time to time in its publicly filed documents, including PMI's Annual Report on Form 10-K for the fourth quarter and year ended December 31, 2023, and the Quarterly Report on Form 10-Q for the second quarter ended June 30, 2024, which will be filed in the coming days. 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 July 23, 2024, and at www.pmi.com/2024Q2earnings. A glossary of key terms, definitions and explanatory notes is available in the aforementioned Exhibit 99.2 and on

• 18 -

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.

Diluted EPS reconciliation
	Second-Quarter
---	---	---	---	---
	2024	2023	% Change
Reported Diluted EPS	$ 1.54	$ 1.01	52.5	%
Impairment of goodwill and other intangibles	—	0.44
Amortization of intangibles	0.11	0.04
South Korea indirect tax charge	—	0.11
Income tax impact associated with Swedish Match AB financing	0.02	(0.01)
Fair value adjustment for equity security investments	(0.08)	0.01
Adjusted Diluted EPS	$ 1.59	$ 1.60	(0.6)	%
Less: Currency	(0.18)
Adjusted Diluted EPS, excluding Currency	$ 1.77	$ 1.60	10.6	%

• 19 -

																																							Appendix 1
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Key Market Data
Quarters Ended June 30,
Market			Total Market,<br><br>bio units							PMI Shipments, bio units																					PMI Market Share(2), %
		Total							Cigarette							HTU							Total							HTU
	2024	2023		% Change			2024	2023			% Change			2024	2023			% Change			2024	2023			% Change			2024	2023			pp Change			2024	2023		pp Change
Total(1)(2)			657.2		647.2	1.5				193.2		188.4	2.5				157.6		157.0	0.4				35.5		31.4	13.1				28.7		28.6	0.1			5.1		4.7	0.4
Europe
France			6.7		7.6	(11.4)				3.3		3.7	(11.7)				3.3		3.7	(11.3)				—		0.1	(37.6)				41.5		42.4	(0.9)			0.6		0.8	(0.2)
Germany(3)			17.3		17.9	(3.3)				6.8		6.9	(0.6)				5.8		6.1	(6.0)				1.1		0.7	43.4				39.0		39.2	(0.2)			6.0		5.4	0.6
Italy(3)			18.1		18.4	(1.5)				10.6		9.8	7.6				8.0		7.0	14.5				2.5		2.8	(9.7)				53.6		53.6	—			16.7		17.1	(0.4)
Poland(3)			15.0		15.0	0.1				6.5		6.1	6.0				5.1		4.9	4.4				1.4		1.2	12.5				43.3		41.1	2.2			9.1		8.6	0.5
Spain			11.2		11.3	(0.6)				3.5		3.6	(3.2)				3.2		3.3	(3.7)				0.3		0.3	2.4				29.2		29.2	—			2.6		2.2	0.4
SSEA, CIS & MEA
Egypt			19.0		16.1	18.6				6.7		6.0	11.6				6.3		5.7	11.8				0.3		0.3	8.2				34.5		37.2	(2.7)			1.9		1.8	0.1
Indonesia			71.9		72.2	(0.5)				19.6		21.0	(6.4)				19.4		20.8	(7.1)				0.3		0.1	89.1				27.3		29.1	(1.8)			0.4		0.2	0.2
Philippines			9.7		10.2	(4.8)				5.1		5.7	(9.7)				5.0		5.6	(10.1)				0.1		—	—				52.7		55.6	(2.9)			0.7		0.5	0.2
Russia			55.1		51.9	6.2				17.4		16.5	5.3				12.9		12.6	2.6				4.4		3.9	14.1				31.6		32.8	(1.2)			8.2		7.9	0.3
Turkey			38.9		37.4	4.1				20.3		18.5	9.7				20.3		18.5	9.7				—		—	—				52.3		49.6	2.7			—		—	—
EA, AU & PMI DF
Australia			1.4		1.9	(29.1)				0.4		0.6	(28.5)				0.4		0.6	(28.5)				—		—	—				32.8		32.5	0.3			—		—	—
Japan(2)			37.9		37.6	0.9				17.5		16.7	5.0				4.1		4.9	(16.7)				13.4		11.8	14.0				40.9		39.4	1.5			29.4		26.3	3.1
South Korea			18.2		18.5	(1.9)				3.6		3.6	(1.3)				2.2		2.3	(6.0)				1.4		1.3	6.9				19.6		19.5	0.1			7.7		7.0	0.7
Americas
Argentina			5.9		7.3	(20.0)				3.6		4.5	(19.9)				3.6		4.5	(19.9)				—		—	—				61.5		61.5	—			—		—	—
Mexico			7.4		7.4	0.9				4.6		4.6	(0.4)				4.6		4.6	(1.0)				0.1		—	—				62.2		63.0	(0.8)			0.8		0.4	0.4
(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 IMS 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%
																																							Appendix 2
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Key Market Data
Six Months Ended June 30,
Market			Total Market,<br>bio units							PMI Shipments, bio units																					PMI Market Share(2), %
		Total							Cigarette							HTU							Total							HTU
	2024	2023		% Change			2024	2023			% Change			2024	2023			% Change			2024	2023			% Change			2024	2023			pp Change			2024	2023		pp Change
Total(1)(2)			1,274.9		1,261.5	1.1				369.5		359.5	2.8				300.8		300.7	—				68.7		58.8	16.8				28.3		27.9	0.4			5.1		4.6	0.5
Europe
France			13.0		15.1	(13.8)				5.9		7.5	(21.7)				5.8		7.4	(21.5)				0.1		0.1	(33.3)				40.9		42.3	(1.4)			0.6		0.8	(0.2)
Germany(3)			33.3		33.7	(1.2)				13.2		12.9	1.9				11.1		11.6	(4.7)				2.1		1.3	61.4				39.4		39.3	0.1			6.2		5.4	0.8
Italy(3)			35.6		35.6	—				18.5		18.7	(0.9)				13.7		13.9	(1.3)				4.8		4.8	—				53.1		53.7	(0.6)			17.2		17.0	0.2
Poland(3)			29.1		28.5	2.3				12.5		11.6	7.9				9.9		9.2	7.8				2.7		2.5	8.4				43.1		41.0	2.1			9.1		9.0	0.1
Spain			20.9		21.2	(1.1)				6.3		6.5	(2.9)				5.8		6.0	(4.2)				0.5		0.4	15.7				29.1		29.1	—			2.7		2.2	0.5
SSEA, CIS & MEA
Egypt			38.4		38.5	(0.3)				12.0		11.7	2.0				11.3		11.3	0.6				0.6		0.5	35.4				30.7		30.4	0.3			1.9		1.4	0.5
Indonesia			145.8		141.4	3.1				39.4		40.5	(2.9)				39.4		40.5	(2.9)				0.5		0.2	+100				27.3		28.8	(1.5)			0.3		0.2	0.1
Philippines			20.0		21.7	(7.9)				10.6		12.3	(14.2)				10.4		12.2	(14.6)				0.1		0.1	30.0				52.8		56.7	(3.9)			0.7		0.5	0.2
Russia			101.9		96.7	5.3				32.9		31.2	5.4				24.4		23.5	3.7				8.5		7.7	10.5				32.0		32.0	—			8.8		8.1	0.7
Turkey			70.1		63.5	10.3				36.3		31.3	16.0				36.3		31.3	16.0				—		—	—				51.9		49.3	2.6			—		—	—
EA, AU & PMI DF
Australia			2.7		3.8	(29.4)				1.0		1.3	(27.2)				1.0		1.3	(27.2)				—		—	—				35.2		34.2	1.0			—		—	—
Japan(2)			73.7		72.9	1.0				35.4		31.5	12.6				8.4		9.6	(12.6)				27.0		21.9	23.6				41.0		39.4	1.6			29.4		26.3	3.1
South Korea			34.7		35.4	(2.1)				6.9		6.9	0.5				4.2		4.4	(5.6)				2.8		2.5	11.7				20.0		19.5	0.5			7.9		6.9	1.0
Americas
Argentina			13.0		15.1	(13.8)				8.0		9.4	(14.7)				8.0		9.4	(14.7)				—		—	—				61.6		62.2	(0.6)			—		—	—
Mexico			13.7		13.5	1.3				8.3		8.3	—				8.2		8.3	(0.6)				0.1		0.1	78.4				61.1		61.9	(0.8)			0.8		0.4	0.4
(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 IMS 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%

Document

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

2024 Second-Quarter Results

July 23, 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.

•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.

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

•"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.

•Following the combination and the progress in 2023 toward integration of the Swedish Match business into the existing PMI regional segment structure, PMI updated in January 2024 its segment reporting by including Swedish Match results in the four existing geographical regions. As of the first quarter of 2024, PMI began reporting 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.

•Within the tables and schedules presented throughout this earnings release, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes.

Financial

•"Adjusted net revenues" exclude the impact related to the termination of a distribution arrangement in the Middle East in 2023.

•"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 five segments of this release reflects the currency and acquisition-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 and acquisition-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.

•When PMI provides its expectation for adjusted net revenues, adjusted operating income and margin, adjusted earnings per share and adjusted operating cash flow on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures, as described above, generally is not available without unreasonable effort due to potentially high variability, complexity, and low visibility as to the items that would be excluded from the GAAP measure in the relevant future period, such as asset impairment and exit costs, amortization and impairment of acquired intangibles and other special items, changes in currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes or their probable significance. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.

•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. Adjustments reflect share price movements in PMI's investments in India and Sri Lanka.

•"Swedish Match AB acquisition accounting related items" 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

•Smoke-free business ("SFB”) is the term PMI uses to refer to all of its smoke-free products. SFB also includes wellness and healthcare products, as well as consumer accessories, such as lighters and matches.

•Smoke-free products ("SFPs”) is the term PMI uses to refer to all of its products that provide nicotine without combusting tobacco, such as heat-not-burn, e-Vapor, and oral smokeless, and that therefore generate far lower levels of harmful chemicals. As such, these products have the potential to present less risk of harm versus continued smoking.

•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"), 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.

•"Adjusted market share for HTUs" is defined as the total in-market sales volume for PMI HTUs as a percentage of the total estimated sales volume for cigarettes and HTUs, excluding the impact of estimated distributor and wholesaler inventory movements.

•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" or "IQOS HTUs" include licensed KT&G HTUs.

•“Total PMI SFPs users” is defined as the sum of “Total IQOS users”, “Total oral smokeless users", “Total e-Vapor users” of PMI products minus “Poly-users across PMI SFPs categories”.

•“Total IQOS users” is defined as the estimated number of Legal Age (minimum 18 years1) 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.

•“Total PMI oral smokeless users” are defined as the estimated number of Legal Age (minimum 21 years in the U.S and minimum 18 years1 outside the U.S) users of oral smokeless products who consumed at least one of PMI oral smokeless products (nicotine pouches in the U.S., and nicotine pouches or snus outside the U.S) over the past seven days.

•“Total PMI e-Vapor users” is defined as the estimated number of Legal Age (minimum 18 years1) users of e-Vapor products, who consumed at least one of PMI e-Vapor products in the past seven days.

1 Minimum 18 years or older depending on market regulation

•“Poly-users across PMI SFPs categories” are defined as the estimated number of Legal Age (minimum 18 years1) users who used multiple PMI SFPs over the past seven days.2

•The above SFPs user metrics reflect PMI estimates, which are based on PMI's proprietary Nicotine Containing Products Tracker (NCPT). The methodology relies on NCPT e-Vapor, oral smokeless (except the U.S.) and poly-usage data, which is calibrated using Total IQOS users data, leveraging our deeper understanding of PMI’s heat-not-burn category and its size. Total PMI oral smokeless users in the U.S. are approximated through volume-based estimations, as NCPT data for the U.S. is not currently available.

Note: PMI SFPs user estimates are derived from sample-based estimations from NCPT at 95% Confidence Interval. The accuracy and reliability of PMI SFPs users estimates may vary based on sample size, market maturity and availability of information.

•"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.

•Oral smoke-free products conversion: (i) nicotine pouches: 15 pouches per can in the U.S. and weighted average 21 pouches per can outside the U.S.; (ii) snus products: weighted average 21 pouches equivalent per can; (iii) moist snuff products: weighted average 17 pouches equivalent per can; (iv) tobacco bits products: weighted average 30 pouches equivalent per can; (v) chew bags products: weighted average 20 pouches per can.

12Minimum 18 years or older depending on market regulation

Select Financial Information and Reconciliations of Non-GAAP Financial Measures

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Diluted Earnings Per Share (EPS)
( in millions, except per share data) / (Unaudited)
	Quarters Ended	Diluted EPS		Six Months Ended
			June 30,
		2024 Diluted Earnings Per Share (1)
		2023 Diluted Earnings Per Share (1)
		Change
		% Change
		Reconciliation:
		2023 Diluted Earnings Per Share (1)
		2023 Asset impairment and exit costs
		2023 Amortization of intangibles
		2023 Impairment of goodwill and other intangibles
		2023 Termination of distribution arrangement in the Middle East
		2023 South Korea indirect tax charge
		2023 Swedish Match AB acquisition accounting related items
		2023 Income tax impact associated with Swedish Match AB financing
		2023 Fair value adjustment for equity security investments
		2024 Asset impairment and exit costs
		2024 Impairment of other intangibles
		2024 Amortization of intangibles
		2024 Income tax impact associated with Swedish Match AB financing
		2024 Fair value adjustment for equity security investments
		2024 Tax Items
		Currency
		Interest
		Change in tax rate
		Operations (2)
		2024 Diluted Earnings Per Share (1)
(1) Basic and diluted EPS were calculated using the following (in millions):
	Quarters Ended			Six Months Ended
	June 30,			June 30,
	2024			2024
	2,406	Net Earnings attributable to PMI		4,554
	7	Less: Distributed and undistributed earnings attributable to share-based payment awards		14
	2,399	Net Earnings for basic and diluted EPS		4,540
	1,555	Weighted-average shares for basic EPS		1,554
	1	Plus Contingently Issuable Performance Stock Units (3)		2
	1,556	Weighted-average shares for diluted EPS		1,556
(2) Includes the impact of shares outstanding and share-based payments
(3) Including rounding adjustment
Note: EPS is computed independently for each of the periods presented. Accordingly, the sum of the quarterly EPS amounts may not agree to the total for the year

All values are in US Dollars.

										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 June 30,					Six Months Ended June 30,
	2024	2023	% Change			2024	2023	% Change
	$ 1.54	$ 1.01	52.5	%	Reported Diluted EPS	$ 2.92	$ 2.29	27.5	%
	(0.18)				Less: Currency	(0.38)
	$ 1.72	$ 1.01	70.3	%	Reported Diluted EPS, excluding Currency	$ 3.30	$ 2.29	44.1	%
	Quarters Ended June 30,					Six Months Ended June 30,					Year Ended
	2024	2023	% Change			2024	2023	% Change			2023
	$ 1.54	$ 1.01	52.5	%	Reported Diluted EPS	$ 2.92	$ 2.29	27.5	%		$ 5.02
	—	—			Asset impairment and exit costs	0.09	0.06				0.06
	—	—			Termination of distribution arrangement in the Middle East	—	0.04				0.04
	—	0.44			Impairment of goodwill and other intangibles	0.01	0.44				0.44
	0.11	0.04			Amortization of intangibles	0.17	0.08				0.25
	—	—			Charges related to the war in Ukraine	—	—				0.03
	—	—			Swedish Match AB acquisition accounting related items	—	0.01				0.01
	0.02	(0.01)			Income tax impact associated with Swedish Match AB financing	0.09	(0.06)				(0.11)
	—	0.11			South Korea indirect tax charge	—	0.11				0.11
	—	—			Termination of agreement with Foundation for a Smoke-Free World	—	—				0.07
	(0.08)	0.01			Fair value adjustment for equity security investments	(0.15)	0.01				(0.02)
	—	—			Tax items	(0.03)	—				0.11
	$ 1.59	$ 1.60	(0.6)	%	Adjusted Diluted EPS	$ 3.10	$ 2.98	4.0	%		$ 6.01
	(0.18)				Less: Currency	(0.38)
	$ 1.77	$ 1.60	10.6	%	Adjusted Diluted EPS, excluding Currency	$ 3.48	$ 2.98	16.8	%
	Note: EPS is computed independently for each of the periods presented. Accordingly, the sum of the quarterly EPS amounts may not agree to the total for the year
								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)
NetRevenues	Net<br>Revenues<br>excluding Currency	Acqui-<br>sitions	Net<br>Revenues excl. Currency & <br>Acquisitions	Quarters Ended<br>June 30,	Net<br>Revenues	Total		Excluding Currency		Excluding Currency & Acquisitions
2024				Combustible Tobacco	2023	% Change
2,214	$ 2,215	$ —	$ 2,215	Europe	$ 2,108	5.0	%	5.1	%	5.1	%
2,432	2,636	—	2,636	SSEA, CIS & MEA	2,350	3.5	%	12.2	%	12.2	%
620	645	—	645	EA, AU & PMI DF	724	(14.3)	%	(10.9)	%	(10.9)	%
592	571	—	571	Americas	608	(2.5)	%	(5.9)	%	(5.9)	%
5,858	$ 6,068	$ —	$ 6,068	Total Combustible Tobacco	$ 5,790	1.2	%	4.8	%	4.8	%
2024				Smoke-free excl. W&H	2023	% Change
1,601	$ 1,609	$ —	$ 1,609	Europe	$ 1,466	9.3	%	9.8	%	9.8	%
339	386	—	386	SSEA, CIS & MEA	318	6.6	%	21.4	%	21.4	%
1,053	1,148	—	1,148	EA, AU & PMI DF	956	10.1	%	20.0	%	20.0	%
537	536	—	536	Americas	361	48.5	%	48.2	%	48.2	%
3,530	$ 3,678	$ —	$ 3,678	Total Smoke-free excl. W&H	$ 3,101	13.8	%	18.6	%	18.6	%
2024				Wellness and Healthcare	2023	% Change
80	$ 80	$ —	$ 80	Wellness and Healthcare	$ 76	5.3	%	5.3	%	5.3	%
2024				Smoke-free incl. W&H	2023	% Change
3,610	$ 3,758	$ —	$ 3,758	Smoke-free incl. W&H	$ 3,177	13.6	%	18.3	%	18.3	%
2024				PMI	2023	% Change
3,815	$ 3,824	$ —	$ 3,824	Europe	$ 3,574	6.7	%	7.0	%	7.0	%
2,771	3,022	—	3,022	SSEA, CIS & MEA	2,668	3.9	%	13.3	%	13.3	%
1,673	1,793	—	1,793	EA, AU & PMI DF	1,680	(0.4)	%	6.7	%	6.7	%
1,129	1,107	—	1,107	Americas	969	16.5	%	14.2	%	14.2	%
80	80	—	80	Wellness and Healthcare	76	5.3	%	5.3	%	5.3	%
9,468	$ 9,826	$—	$ 9,826	Total PMI	$ 8,967	5.6	%	9.6	%	9.6	%
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

All values are in US Dollars.

								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)
NetRevenues	Net<br>Revenues<br>excluding Currency	Acqui-<br>sitions	Net<br>Revenues excl. Currency & <br>Acquisitions	Six Months Ended<br>June 30,	NetRevenues	Total		Excluding Currency		Excluding Currency & Acquisitions
2024				Combustible Tobacco	2023	% Change
4,145	$ 4,102	$ —	$ 4,102	Europe	3,924	5.6	%	4.5	%	4.5	%
4,778	5,121	—	5,121	SSEA, CIS & MEA	4,504	6.1	%	13.7	%	13.7	%
1,217	1,266	—	1,266	EA, AU & PMI DF	1,412	(13.9)	%	(10.4)	%	(10.4)	%
1,126	1,077	—	1,077	Americas	1,173	(4.0)	%	(8.1)	%	(8.1)	%
11,265	$ 11,566	$—	$ 11,566	Total Combustible Tobacco	11,013	2.3	%	5.0	%	5.0	%
2024				Smoke-free excl. W&H	2023	% Change
3,035	$ 3,009	$ —	$ 3,009	Europe	2,718	11.7	%	10.7	%	10.7	%
651	753	—	753	SSEA, CIS & MEA	641	1.5	%	17.5	%	17.5	%
2,140	2,320	—	2,320	EA, AU & PMI DF	1,788	19.7	%	29.8	%	29.8	%
999	997	—	997	Americas	664	50.4	%	50.0	%	50.0	%
6,826	$ 7,079	$ —	$ 7,079	Total Smoke-free excl. W&H	5,811	17.5	%	21.8	%	21.8	%
2024				Wellness and Healthcare	2023	% Change
170	$168	$—	$ 168	Wellness and Healthcare	162	4.9	%	3.7	%	3.7	%
2024				Smoke-free incl. W&H	2023	% Change
6,996	$ 7,247	$ —	$ 7,247	Smoke-free incl. W&H	5,973	17.1	%	21.3	%	21.3	%
2024				PMI	2023	% Change
7,180	$ 7,111	$ —	$ 7,111	Europe	6,642	8.1	%	7.1	%	7.1	%
5,429	5,874	—	5,874	SSEA, CIS & MEA	5,145	5.5	%	14.2	%	14.2	%
3,357	3,586	—	3,586	EA, AU & PMI DF	3,200	4.9	%	12.1	%	12.1	%
2,125	2,074	—	2,074	Americas	1,837	15.7	%	12.9	%	12.9	%
170	168	—	168	Wellness and Healthcare	162	4.9	%	3.7	%	3.7	%
18,261	$ 18,813	$—	$ 18,813	Total PMI	16,986	7.5	%	10.8	%	10.8	%
(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

All values are in US Dollars.

												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)
NetRevenues	Adjusted Net<br>Revenues	Currency	Adjusted Net<br>Revenues excluding Currency	Acqui-<br>sitions	Adjusted NetRevenues excluding Currency & Acqui-sitions		Net<br>Revenues	Special Items (1)	Adjusted Net<br>Revenues	Total		Excluding Currency		Excluding Currency<br>& Acqui-<br>sitions
2024							2023			% Change
3,815	$ 3,815	$ (9)	$ 3,824	$ —	3,824	Europe	$ 3,574	—	$ 3,574	6.7	%	7.0	%	7.0	%
2,771	2,771	(251)	3,022	—	3,022	SSEA, CIS & MEA	2,668	—	2,668	3.9	%	13.3	%	13.3	%
1,673	1,673	(120)	1,793	—	1,793	EA, AU & PMI DF	1,680	—	1,680	(0.4)	%	6.7	%	6.7	%
1,129	1,129	22	1,107	—	1,107	Americas	969	—	969	16.5	%	14.2	%	14.2	%
80	80	—	80	—	80	Wellness and Healthcare	76	—	76	5.3	%	5.3	%	5.3	%
9,468	$ 9,468	$ (358)	$ 9,826	$ —	9,826	Total PMI	$ 8,967	—	$ 8,967	5.6	%	9.6	%	9.6	%
2024							2023			% Change
7,180	$ 7,180	$ 69	$ 7,111	$ —	7,111	Europe	$ 6,642	—	$ 6,642	8.1	%	7.1	%	7.1	%
5,429	5,429	(445)	5,874	—	5,874	SSEA, CIS & MEA	5,145	(80)	5,225	3.9	%	12.4	%	12.4	%
3,357	3,357	(229)	3,586	—	3,586	EA, AU & PMI DF	3,200	—	3,200	4.9	%	12.1	%	12.1	%
2,125	2,125	51	2,074	—	2,074	Americas	1,837	—	1,837	15.7	%	12.9	%	12.9	%
170	170	2	168	—	168	Wellness and Healthcare	162	—	162	4.9	%	3.7	%	3.7	%
18,261	$ 18,261	$ (552)	$ 18,813	$ —	18,813	Total PMI	$ 16,986	(80)	$ 17,066	7.0	%	10.2	%	10.2	%
(1) Reflects a reduction in net revenues of 80 million related to the termination of distribution arrangement in the Middle East

All values are in US Dollars.

												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)
GrossProfit	Adjusted<br>Gross<br>Profit	Currency	Adjusted Gross Profit<br>excluding Currency	Acqui-<br>sitions	Adjusted Gross Profit excl. Currency & <br>Acquisitions	Quarters Ended<br>June 30,	Gross<br>Profit	Special<br>Items (1)	Adjusted<br>Gross<br>Profit	Total		Excluding Currency		Excluding Currency & Acquisitions
2024							2023			% Change
3,775	$ 3,775	$ (149)	$ 3,924	$ 12	$ 3,912	Combustible Tobacco	$ 3,707	$ —	$ 3,707	1.8	%	5.8	%	5.5	%
2024							2023			% Change
2,348	$ 2,364	$ (146)	$ 2,510	$ —	$ 2,510	Smoke-free incl. W&H	$ 2,032	$ (22)	$ 2,054	15.1	%	22.2	%	22.2	%
2024							2023			% Change
6,123	$ 6,139	$ (295)	$ 6,434	$ 12	$ 6,422	Total PMI	$ 5,739	$ (22)	$ 5,761	6.6	%	11.7	%	11.5	%
(1) 2024 second-quarter reflects amortization of intangibles in Smoke-free incl. W&H, all amounts are related to cost of goods sold. 2023 second-quarter includes amortization of intangibles, all amounts are related to cost of goods sold.
Note: Sum of product categories and special items might not foot due to roundings.

All values are in US Dollars.

												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)
GrossProfit	Adjusted<br>Gross<br>Profit	Currency	Adjusted Gross Profit<br>excluding Currency	Acqui-<br>sitions	Adjusted Gross Profit excl. Currency & <br>Acquisitions	Six Months Ended<br>June 30,	Gross<br>Profit	Special<br>Items (1)	Adjusted<br>Gross<br>Profit	Total		Excluding Currency		Excluding Currency & Acquisitions
2024							2023			% Change
7,226	$ 7,226	$ (229)	$ 7,455	$ 12	$ 7,443	Combustible Tobacco	$ 7,059	$ (98)	$ 7,158	1.0	%	4.2	%	4.0	%
2024							2023			% Change
4,495	$ 4,527	$ (252)	$ 4,779	$ —	$ 4,779	Smoke-free incl. W&H	$ 3,661	$ (44)	$ 3,704	22.2	%	29.0	%	29.0	%
2024							2023			% Change
11,721	$ 11,753	$ (481)	$ 12,234	$ 12	$ 12,222	Total PMI	$ 10,720	$ (142)	$ 10,862	8.2	%	12.6	%	12.5	%
(1) 2024 six months ended June 30 reflects amortization of intangibles in Smoke-free incl. W&H, all amounts are related to cost of goods sold. 2023 six months ended June 30 includes termination of distribution arrangement in the Middle East (80 million in Combustible Tobacco), Swedish Match AB acquisition accounting related items (18 million in Combustible Tobacco) and amortization of intangibles (44 million in Smoke-free incl. W&H)
Note: Sum of product categories and special items might not foot due to roundings.

All values are in US Dollars.

											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	Operating Income excluding Currency	Acqui-sitions	Operating Income excluding Currency & <br>Acquisitions			Operating Income		Excluding Currency	Excluding Currency & <br>Acquisitions
2024						2023
1,660	$ (45)	$ 1,705	$ —	1,705	Europe		1,619		2.5	%	5.3	%	5.3	%
891	(230)	1,121	12	1,109	SSEA, CIS & MEA		880		1.3	%	27.4	%	26.0	%
753	(91)	844	—	844	EA, AU & PMI DF		557		35.2	%	51.5	%	51.5	%
183	35	148	—	148	Americas		243		(24.7)	%	(39.1)	%	(39.1)	%
(43)	—	(43)	—	(43)	Wellness and Healthcare		(733)		94.1	%	94.1	%	94.1	%
3,444	$ (331)	$ 3,775	$ 12	3,763	Total PMI		2,566		34.2	%	47.1	%	46.6	%
2024						2023
3,116	$ (31)	$ 3,147	$ —	3,147	Europe		2,834		10.0	%	11.0	%	11.0	%
1,663	(471)	2,134	12	2,122	SSEA, CIS & MEA		1,614		3.0	%	32.2	%	31.5	%
1,516	(216)	1,732	—	1,732	EA, AU & PMI DF		1,194		27.0	%	45.1	%	45.1	%
282	57	225	—	225	Americas		426		(33.8)	%	(47.2)	%	(47.2)	%
(88)	2	(90)	—	(90)	Wellness and Healthcare		(771)		88.6	%	88.3	%	88.3	%
6,489	$ (659)	$ 7,148	$ 12	7,136	Total PMI		5,297		22.5	%	34.9	%	34.7	%

All values are in US Dollars.

													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	Currency	Adjusted Operating Income excluding Currency	Acqui-<br>sitions	Adjusted Operating Income excluding Currency <br>& Acqui-<br>sitions			Operating Income	Special<br>Items (1)	Adjusted Operating Income	Total	Excluding Currency <br>& Acqui-<br>sitions
2024					Quarters Ended<br>June 30,		2023			% Change
1,660	$ 1,701	$ (45)	$ 1,746	$ —	$ 1,746	Europe		$ 1,619	$ (28)	1,647	3.3	%	6.0	%	6.0	%
891	896	(230)	1,126	12	1,114	SSEA, CIS & MEA		880	(5)	885	1.2	%	27.2	%	25.9	%
753	753	(91)	844	—	844	EA, AU & PMI DF		557	(205)	762	(1.2)	%	10.8	%	10.8	%
183	335	35	300	—	300	Americas		243	(33)	276	21.4	%	8.7	%	8.7	%
(43)	(29)	—	(29)	—	(29)	Wellness and Healthcare		(733)	(695)	(38)	23.7	%	23.7	%	23.7	%
3,444	$ 3,656	$ (331)	$ 3,987	$ 12	$ 3,975	Total PMI		$ 2,566	$ (966)	3,532	3.5	%	12.9	%	12.5	%
2024					Six Months Ended<br>June 30,		2023			% Change
3,116	$ 3,197	$ (31)	$ 3,228	$ —	$ 3,228	Europe		$ 2,834	$ (103)	2,937	8.9	%	9.9	%	9.9	%
1,663	1,673	(471)	2,144	12	2,132	SSEA, CIS & MEA		1,614	(122)	1,736	(3.6)	%	23.5	%	22.8	%
1,516	1,517	(216)	1,733	—	1,733	EA, AU & PMI DF		1,194	(225)	1,419	6.9	%	22.1	%	22.1	%
282	661	57	604	—	604	Americas		426	(95)	521	26.9	%	15.9	%	15.9	%
(88)	(32)	2	(34)	—	(34)	Wellness and Healthcare		(771)	(709)	(62)	48.4	%	45.2	%	45.2	%
6,489	$ 7,016	$ (659)	$ 7,675	$ 12	$ 7,663	Total PMI		$ 5,297	$ (1,254)	6,551	7.1	%	17.2	%	17.0	%
(1) See Schedule 10 and 11 for Special Items details
Note: Sum of product categories and special items might not foot due to roundings.

All values are in US Dollars.

										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)
		Change Fav./(Unfav.)				Variance Fav./(Unfav.)
PMI	2023	Total		Excl. Curr. & Acquisitions		Total	Currency	Acquisitions	Price	Vol/Mix	Cost/Other
Reported Operating Income	$ 2,566	34.2	%	46.6	%	$ 878	$ (331)	$ 12	$ 583	$ 158	$ 456
Impairment of goodwill and other intangibles	(680)	100.0	%	100.0	%	680	—	—	—	—	680
Amortization of intangibles	(82)	-(100)%		-(100)%		(130)	—	—	—	—	(130)
South Korea Indirect Tax Charge	(204)	100.0	%	100.0	%	204	—	—	—	—	204
Adjusted Operating Income	$ 3,532	3.5	%	12.5	%	$ 124	$ (331)	$ 12	$ 583	$ 158	$ (298)
Europe
Reported Operating Income	$ 1,619	2.5	%	5.3	%	$ 41	$ (45)	$ —	$ 205	$ 2	$ (121)
Amortization of intangibles	(28)	(41.8)	%	(41.8)	%	(12)	—	—	—	—	(12)
Adjusted Operating Income	$ 1,647	3.3	%	6.0	%	$ 54	$ (45)	$ —	$ 205	$ 2	$ (109)
SSEA, CIS & MEA
Reported Operating Income	$ 880	1.3	%	26.0	%	$ 11	$ (230)	$ 12	$ 229	$ 50	$ (50)
Amortization of intangibles	(5)	6.8	%	6.8	%	—	—	—	—	—	—
Adjusted Operating Income	$ 885	1.2	%	25.9	%	$ 11	$ (230)	$ 12	$ 229	$ 50	$ (50)
Note: Sum of special items might not foot due to roundings. Special items between -0.5 million and +0.5 million are not displayed by segment.

All values are in US Dollars.

										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)
		Change Fav./(Unfav.)				Variance Fav./(Unfav.)
EA, AU & PMI DF	2023	Total		Excl. Curr. & Acquisitions		Total	Currency	Acqui-sitions	Price	Vol/Mix	Cost/Other
Reported Operating Income	$ 557	35.2	%	51.5	%	$ 196	$ (91)	$ —	$ 88	$ 2	$ 197
Amortization of intangibles	(1)	28.8	%	28.8	%	—	—	—	—	—	—
South Korea Indirect Tax Charge	(204)	100.0	%	100.0	%	204	—	—	—	—	204
Adjusted Operating Income	$ 762	(1.2)	%	10.8	%	$ (9)	$ (91)	$ —	$ 88	$ 2	$ (7)
Americas
Reported Operating Income	$ 243	(24.7)	%	(39.1)	%	$ (60)	$ 35	$ —	$ 55	$ 104	$ (254)
Amortization of intangibles	(33)	-(100)%		-(100)%		(119)	—	—	—	—	(119)
Adjusted Operating Income	$ 276	21.4	%	8.7	%	$ 59	$ 35	$ —	$ 55	$ 104	$ (135)
Wellness & Healthcare
Reported Operating Income / (Loss)	$ (733)	94.1	%	94.1	%	$ 690	$ —	$ —	$ 6	$ —	$ 684
Impairment of goodwill and other intangibles	(680)	100.0	%	100.0	%	680	—	—	—	—	680
Amortization of intangibles	(15)	3.8	%	3.8	%	1	—	—	—	—	1
Adjusted Operating Income / (Loss)	$ (38)	23.7	%	23.7	%	$ 9	$ —	$ —	$ 6	$ —	$ 3
Note: Sum of special items might not foot due to roundings. Special items between -0.5 million and +0.5 million are not displayed by segment.

All values are in US Dollars.

										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)
		Change Fav./(Unfav.)				Variance Fav./(Unfav.)
PMI	2023	Total		Excl. Curr. & Acquisitions		Total	Currency	Acquisitions	Price	Vol/Mix	Cost/Other
Reported Operating Income	$ 5,297	22.5	%	34.7	%	$ 1,192	$ (659)	$ 12	$ 1,032	$ 453	$ 354
Asset Impairment & Exit Costs	(109)	(54.1)	%	(54.1)	%	(59)	—	—	—	—	(59)
Termination of distribution arrangement in the Middle East	(80)	100.0	%	100.0	%	80	—	—	—	—	80
Impairment of goodwill and other intangibles	(680)	96.0	%	96.0	%	653	—	—	—	—	653
Amortization of intangibles	(163)	-(100)%		-(100)%		(169)	—	—	—	—	(169)
Swedish Match AB acquisition accounting related items	(18)	100.0	%	100.0	%	18	—	—	—	—	18
South Korea Indirect Tax Charge	(204)	100.0	%	100.0	%	204	—	—	—	—	204
Adjusted Operating Income	$ 6,551	7.1	%	17.0	%	$ 465	$ (659)	$ 12	$ 1,032	$ 453	$ (373)
Europe
Reported Operating Income	$ 2,834	10.0	%	11.0	%	$ 282	$ (31)	$ —	$ 368	$ 66	$ (121)
Asset Impairment & Exit Costs	(47)	100.0	%	100.0	%	47	—	—	—	—	47
Amortization of intangibles	(56)	(43.3)	%	(43.3)	%	(24)	—	—	—	—	(24)
Adjusted Operating Income	$ 2,937	8.9	%	9.9	%	$ 260	$ (31)	$ —	$ 368	$ 66	$ (143)
SSEA, CIS & MEA
Reported Operating Income	$ 1,614	3.0	%	31.5	%	$ 49	$ (471)	$ 12	$ 384	$ 96	$ 28
Asset Impairment & Exit Costs	(32)	100.0	%	100.0	%	32	—	—	—	—	32
Termination of distribution arrangement in the Middle East	(80)	100.0	%	100.0	%	80	—	—	—	—	80
Amortization of intangibles	(10)	4.0	%	4.0	%	—	—	—	—	—	—
Adjusted Operating Income	$ 1,736	(3.6)	%	22.8	%	$ (63)	$ (471)	$ 12	$ 384	$ 96	$ (84)
Note: Sum of special items might not foot due to roundings. Special items between -0.5 million and +0.5 million are not displayed by segment.

All values are in US Dollars.

										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)
		Change Fav./(Unfav.)				Variance Fav./(Unfav.)
EA, AU & PMI DF	2023	Total		Excl. Curr. & Acquisitions		Total	Currency	Acquisitions	Price	Vol/Mix	Cost/Other
Reported Operating Income	$ 1,194	27.0	%	45.1	%	$ 322	$ (216)	$ —	$ 218	$ 74	$ 246
Asset Impairment & Exit Costs	(19)	100.0	%	100.0	%	19	—	—	—	—	19
Amortization of intangibles	(2)	28.8	%	28.8	%	1	—	—	—	—	1
South Korea Indirect Tax Charge	(204)	—	%	—	%	204	—	—	—	—	204
Adjusted Operating Income	$ 1,419	6.9	%	22.1	%	$ 98	$ (216)	$ —	$ 218	$ 74	$ 23
Americas
Reported Operating Income	$ 426	(33.8)	%	(47.2)	%	$ (144)	$ 57	$ —	$ 54	$ 217	$ (472)
Asset Impairment & Exit Costs	(11)	-(100)%		-(100)%		(157)	—	—	—	—	(157)
Amortization of intangibles	(66)	-(100)%		-(100)%		(146)	—	—	—	—	(146)
Swedish Match AB acquisition accounting related items	(18)	100.0	%	100.0	%	18	—	—	—	—	18
Adjusted Operating Income	$ 521	26.9	%	15.9	%	$ 140	$ 57	$ —	$ 54	$ 217	$ (188)
Wellness & Healthcare
Reported Operating Income / (Loss)	$ (771)	88.6	%	88.3	%	$ 683	$ 2	$ —	$ 8	$ —	$ 673
Impairment of goodwill and other intangibles	(680)	96.1	%	96.1	%	654	—	—	—	—	654
Amortization of intangibles	(29)	(1.2)	%	(1.2)	%	—	—	—	—	—	—
Adjusted Operating Income / (Loss)	$ (62)	48.4	%	45.2	%	$ 30	$ 2	$ —	$ 8	$ —	$ 20
Note: Sum of special items might not foot due to roundings. Special items between -0.5 million and +0.5 million are not displayed by segment.

All values are in US Dollars.

																		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 Operating Income<br>Margin		Adjusted Operating Income<br>excluding Currency<br>(1)	Adjusted<br>Net Revenues excluding Currency<br>(2)	Adjusted Operating Income Margin excluding Currency		Adjusted Operating Income excluding Currency <br>& Acqui-<br>sitions<br>(1)	Adjusted<br>Net Revenues excluding Currency <br>& Acqui-<br>sitions<br>(2)	Adjusted Operating Income Margin excluding Currency <br>& Acqui-<br>sitions				Adjusted Operating Income<br>(1)	Adjusted<br>Net Revenues<br>(2)	Adjusted Operating Income<br>Margin		Adjusted Operating Income<br>Margin	Adjusted Operating Income Margin excluding Currency	Adjusted Operating Income Margin excluding Currency <br>& Acqui-<br>sitions
2024											Quarters Ended<br>June 30,		2023				% Points Change
1,701	44.6	%	$ 1,746	$ 3,824	45.7	%	$ 1,746	$ 3,824	45.7	%		Europe	$ 1,647	$ 3,574	46.1	%	(1.5)	(0.4)	(0.4)
896	32.3	%	1,126	3,022	37.3	%	1,114	3,022	36.9	%		SSEA, CIS & MEA	885	2,668	33.2	%	(0.9)	4.1	3.7
753	45.0	%	844	1,793	47.1	%	844	1,793	47.1	%		EA, AU & PMI DF	762	1,680	45.4	%	(0.4)	1.7	1.7
335	29.7	%	300	1,107	27.1	%	300	1,107	27.1	%		Americas	276	969	28.5	%	1.2	(1.4)	(1.4)
(29)	(36.3)	%	(29)	80	(36.3)	%	(29)	80	(36.3)	%		Wellness and Healthcare	(38)	76	(50.0)	%	13.7	13.7	13.7
3,656	38.6	%	$ 3,987	$ 9,826	40.6	%	$ 3,975	$ 9,826	40.5	%		Total PMI	$ 3,532	$ 8,967	39.4	%	(0.8)	1.2	1.1
2024											Six Months Ended<br>June 30,		2023				% Points Change
3,197	44.5	%	$ 3,228	$ 7,111	45.4	%	$ 3,228	$ 7,111	45.4	%		Europe	$ 2,937	$ 6,642	44.2	%	0.3	1.2	1.2
1,673	30.8	%	2,144	5,874	36.5	%	2,132	5,874	36.3	%		SSEA, CIS & MEA	1,736	5,225	33.2	%	(2.4)	3.3	3.1
1,517	45.2	%	1,733	3,586	48.3	%	1,733	3,586	48.3	%		EA, AU & PMI DF	1,419	3,200	44.3	%	0.9	4.0	4.0
661	31.1	%	604	2,074	29.1	%	604	2,074	29.1	%		Americas	521	1,837	28.4	%	2.7	0.7	0.7
(32)	(18.8)	%	(34)	168	(20.2)	%	(34)	168	(20.2)	%		Wellness and Healthcare	(62)	162	(38.3)	%	19.5	18.1	18.1
7,016	38.4	%	$ 7,675	$ 18,813	40.8	%	$ 7,663	$ 18,813	40.7	%		Total PMI	$ 6,551	$ 17,066	38.4	%	—	2.4	2.3
(1) For the calculation of Adjusted Operating Income and Adjusted Operating Income excluding currency and acquisitions refer to Schedule 8 and 9
(2) For the calculation of Adjusted Net Revenues excluding currency and acquisitions refer to Schedule 5

All values are in US Dollars.

							Schedule 13
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Condensed Statements of Earnings
( in millions, except per share data) / (Unaudited)
					Six Months Ended June 30,
	2023	Change<br>Fav./(Unfav.)			2024	2023	Change<br>Fav./(Unfav.)
	$ 8,967	5.6	%	Net Revenues	$ 18,261	$ 16,986	7.5	%
	3,228	(3.6)	%	Cost of sales	6,540	6,266	(4.4)	%
	5,739	6.7	%	Gross profit	11,721	10,720	9.3	%
	2,508	(6.8)	%	Marketing, administration and research costs	5,232	4,758	(10.0)	%
	665	100.0		Impairment of goodwill	—	665	100.0
	2,566	34.2	%	Operating Income	6,489	5,297	22.5	%
	297	(10.8)	%	Interest expense, net	628	527	(19.2)	%
	6	-(100)%		Pension and other employee benefit costs	29	28	(3.6)	%
	2,263	37.0	%	Earnings before income taxes	5,832	4,742	23.0	%
	560	(31.1)	%	Provision for income taxes	1,410	988	(42.7)	%
	21	+100%		Equity investments and securities (income)/loss, net	(352)	(30)	+100%
	1,682	50.3	%	Net Earnings	4,774	3,784	26.2	%
	114	7.0	%	Net Earnings attributable to noncontrolling interests	220	221	(0.5)	%
	$ 1,568	53.4	%	Net Earnings attributable to PMI	$ 4,554	$ 3,563	27.8	%
				Per share data: (1)
	$ 1.01	52.5	%	Basic Earnings Per Share	$ 2.92	$ 2.29	27.5	%
	$ 1.01	52.5	%	Diluted Earnings Per Share	$ 2.92	$ 2.29	27.5	%
(1) Net Earnings and weighted-average shares used in the basic and diluted Earnings Per Share computations for the quarters and six months ended June 30, 2024 and 2023 are shown on Schedule 1, Footnote 1

All values are in US Dollars.

			Schedule 14
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Condensed Balance Sheets
( in millions) / (Unaudited)
			December 31,
			2023
Assets
Cash and cash equivalents	$	4,807		$	3,060
All other current assets	16,221			16,695
Property, plant and equipment, net	7,264			7,516
Goodwill	16,819			16,779
Other intangible assets, net	12,171			9,864
Equity investments	4,961			4,929
Other assets	3,539			6,461
Total assets	$	65,782		$	65,304
Liabilities and Stockholders' (Deficit) Equity
Short-term borrowings	$	139		$	1,968
Current portion of long-term debt	4,353			4,698
All other current liabilities	17,924			19,717
Long-term debt	44,647			41,243
Deferred income taxes	2,651			2,335
Other long-term liabilities	4,010			4,789
Total liabilities	73,724			74,750
Total PMI stockholders' deficit	(9,744)			(11,225)
Noncontrolling interests	1,802			1,779
Total stockholders' (deficit) equity	(7,942)			(9,446)
Total liabilities and stockholders' (deficit) equity	$	65,782		$	65,304

All values are in US Dollars.

										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
			January ~ June			12 months
			2024			rolling
Net Earnings	$	4,484		$	4,774		$	9,258			$	8,268
Equity investments and securities (income)/loss, net	(127)			(352)			(479)				(157)
Provision for income taxes	1,351			1,410			2,761				2,339
Interest expense, net	534			628			1,162				1,061
Depreciation, amortization and impairment of goodwill and other intangibles	798			839			1,637				2,078
Asset impairment and exit costs and Others (1)	193			168			361				604
Adjusted EBITDA	$	7,233		$	7,467		$	14,700			$	14,193
						June 30,			December 31,
						2024			2023
Short-term borrowings							$	139			$	1,968
Current portion of long-term debt							4,353				4,698
Long-term debt							44,647				41,243
Total Debt							$	49,139			$	47,909
Cash and cash equivalents							4,807				3,060
Net Debt							$	44,332			$	44,849
Ratios:
Total Debt to Adjusted EBITDA							3.34				3.38
Net Debt to Adjusted EBITDA							3.02				3.16
(1) For the period July 2023 to December 2023 "Others" includes 140 million related to Termination of agreement with Foundation for a Smoke-Free World and 53 million of charges related to the war in Ukraine.For the period January 2024 to June 2024 the impact is fully from asset impairment and exit costs

All values are in US Dollars.

							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)
					Six Months Ended June 30,
	2023	% Change			2024	2023	% Change
	$ 3,442	34.6	%	Net cash provided by operating activities (1)	$ 4,873	$ 2,487	95.9	%
				Less: Currency	(669)
	$ 3,442	43.4	%	Net cash provided by operating activities,<br>excluding currency	$ 5,542	$ 2,487	+100%
(1) Operating cash flow

All values are in US Dollars.

26