Equibles

8-K

Philip Morris International Inc. (PM)

8-K 2025-02-06 For: 2025-02-06
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Added on April 02, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 6, 2025

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 2.750% Notes due 2025 PM25 New York Stock Exchange
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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 February 6, 2025, Philip Morris International Inc. (the “Company”) issued a press release announcing its financial results for the quarter and the fiscal year ended December 31, 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 February 6, 2025 (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).
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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: February 6, 2025

Document

Exhibit 99.1

PRESS RELEASE

Philip Morris International Reports 2024 Fourth-Quarter & Full-Year Results; Delivers 2024 Reported Diluted EPS of $4.52, or $6.01 before Canada non-cash impairment of $1.49, compared to $5.02 in 2023 and Adjusted Diluted EPS of $6.57, Representing Growth of 9.3%, and 15.6% on Currency-Neutral Basis

STAMFORD, CT, February 6, 2025 – Philip Morris International Inc. (PMI) (NYSE: PM) today announces its 2024 fourth-quarter and full-year results.1

"2024 was a remarkable year for PMI. We delivered very strong full-year results driven by the continued growth of IQOS and ZYN in addition to a robust combustibles performance," said Jacek Olczak, Chief Executive Officer.

"The long-awaited U.S. FDA authorization of all ZYN nicotine pouches currently marketed in the U.S. is further evidence of the compelling science supporting smoke-free products. We hope our other pending FDA applications will be accelerated. We also hope other countries follow the example of the U.S. and embrace effective tobacco harm reduction measures. This is especially important in places where smoke-free products are banned, resulting in the perpetuation of combustible cigarette consumption."

"With strong momentum across all categories, we are confident that our smoke-free transformation and unparalleled brand portfolio will continue to deliver excellent performance and create value for our shareholders in 2025 and for the long term."

Results Highlights

•Smoke-free business (SFB): Quarterly shipments of HTU and oral smoke-free products exceeded 40 billion units for the first time, driving our smoke-free business to a superior performance, with full-year net revenues increasing by 14.2% (16.7% organically) and gross profit increasing by 18.7% (22.7% organically). In the fourth quarter, we delivered 9.2% net revenue growth (9.0% organically) and 15.1% gross profit growth (both reported and organically), despite a tough comparison due to shipment phasing. The smoke-free business accounted for 40% of our total net revenues and around 42% of gross profit (up by 0.7pp and 0.9pp respectively, versus fourth-quarter 2023), with 38.6 million estimated adult users of our smoke-free products (up by 5.3 million versus December 2023), which are now available in 95 markets.

•Inhalable smoke-free products (SFP): IQOS continues to strengthen its overall position as the second largest nicotine ‘brand’ in markets where present (gaining 0.7pp of combined cigarette and HTU industry volumes in the fourth quarter) and driving the growth of the heat-not-burn category (over 75% of global category volumes). HTU adjusted in-market sales (IMS) volume, which excludes the net impact of estimated distributor and wholesaler inventory movements, was up for the full year by an estimated 12.6%, with an acceleration, as expected, in the second half to close to 14%, with growth of around 13% in the fourth quarter.

•In Japan, ILUMA i fueled the growth of IQOS, with adjusted IMS up by around 13% for the full year and the fourth quarter, the 9th consecutive quarter of double-digit growth. IQOS HTU adjusted market share increased by 3.1pp to 30.6% in the fourth quarter. In December, the overall HTU category exceeded 50% of total nicotine offtake share in 10 major cities and 5 prefectures.

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 February 6, 2025, and at www.pmi.com/2024Q4earnings.

•In Europe, IQOS HTU adjusted market share increased by 0.9pp in the fourth quarter to 10.6%. Adjusted IMS grew by an estimated 9.4% for the full year with an acceleration in the second half to almost 11%. This includes close to 10% estimated growth in the fourth quarter, with strong double-digit growth in many markets, including Spain, Bulgaria, Romania, Greece, and Germany. IQOS HTU offtake share reached a number of milestones in key cities, crossing 40% in Budapest, 30% in Rome, 15% in Belgrade, and approaching 10% in London and Vienna, with Madrid not far behind.

•Outside Europe and Japan, strong adjusted IMS growth continued and offtake share increased in key cities across the globe, including Riyadh, Kuala Lumpur, Jakarta, and Mexico City.

In the vaping category, VEEV is an increasingly trusted choice among IQOS legal-age poly-users, and an important part of our smoke-free multi-category strategy, which we continue to deploy across our markets. VEEV is a top 3 pod brand in 13 European markets (holding the #1 position in 5 markets, including Italy, Romania and Czech Republic).

•Oral SFP2: Full-year shipment volume increased by nearly 28% in cans (nearly 25% in pouches or pouch equivalents). Fourth quarter shipment volume increased by 25% in cans (22% in pouches or pouch equivalents), fueled by ZYN nicotine pouch growth in the U.S., where shipments reached nearly 165 million cans, representing growth of nearly 42% versus prior year. Outside the U.S., our nicotine pouch quarterly shipment volume more than doubled, with notable contributions from Pakistan, South Africa, the UK and Mexico. The number of markets where our nicotine pouch products are available increased to 37, including recent launches in Italy, Romania and Thailand.

•Combustibles: Full-year net revenues grew by 4.0% (5.9% organically) predominantly driven by strong pricing. Fourth quarter net revenues grew by 6.0% (6.2% organically), driven by another quarter of high single-digit pricing and growing industry volumes in markets where smoke-free products are not allowed, including Turkey, India, Brazil and Vietnam. Strong pricing and productivity improvements resulted in gross profit growth of 10.7% (10.8% organically). Our global brands portfolio and Marlboro both achieved further market share gains.

•Dividend: Declared regular quarterly dividend of $1.35 per share, or an annualized $5.40 per share.

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

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| Operating Review - Fourth Quarter | | --- || | Total | HTU | Oral SFP3 | Cigarettes | | --- | --- | --- | --- | --- | | Shipment Volume (units bn) | 193.1 | 35.7 | 4.6 | 152.8 | | vs. Q4 2023 | 2.3% | 5.1% | 22.0% | 1.1% | | | PMI | Combustibles | | --- | --- | --- | | Net Revenues ($ bn) | 9.7 | $5.8 | | reported vs. Q4 2023 | 7.3% | 6.0% | | organic vs. Q4 2023 | 7.3% | 6.2% | | Gross Profit ($ bn) | 6.3 | $3.7 | | reported vs. Q4 2023 | 12.5% | 10.7% | | organic vs. Q4 2023 | 12.6% | 10.8% | | Operating Income ($ bn) | 3.3 | | | reported vs. Q4 2023 | 12.8% | | | organic vs. Q4 2023 | 11.8% | |

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 $(0.38) $(1.93) $1.55 $0.06 $1.49
vs. Q4 2023 -(100)% 14.0% 9.6%
(*) For a list of adjusting items refer to page 23

3 In pouches or pouch equivalents

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| Operating Review - Full Year | | --- || | Total | HTU | Oral SFP4 | Cigarettes | | --- | --- | --- | --- | --- | | Shipment Volume (units bn) | 774.0 | 139.7 | 17.4 | 616.8 | | vs. FY 2023 | 2.9% | 11.6% | 24.6% | 0.6% | | | PMI | Combustibles | | --- | --- | --- | | Net Revenues ($ bn) | 37.9 | $23.2 | | reported vs. FY 2023 | 7.7% | 4.0% | | organic vs. FY 2023 | 9.8% | 5.9% | | Gross Profit ($ bn) | 24.5 | $14.8 | | reported vs. FY 2023 | 10.2% | 5.2% | | organic vs. FY 2023 | 12.7% | 6.8% | | Operating Income ($ bn) | 13.4 | | | reported vs. FY 2023 | 16.0% | | | organic vs. FY 2023 | 14.9% | |

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 $4.52 $(2.05) $6.57 $(0.38) $6.95
vs. FY 2023 (10.0)% 9.3% 15.6%
(*) For a list of adjusting items refer to page 23

4 In pouches or pouch equivalents

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2025 Full-Year Forecast
Full-Year
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2025<br>Forecast 2024
Reported Diluted EPS $6.55 - $6.68 4.52
Adjustments:
Restructuring charges — 0.10
Impairment of goodwill and other intangibles — 0.01
Amortization of intangibles(1) 0.49 0.40
Loss on sale of Vectura Group — 0.13
Egypt sales tax charge — 0.03
Megapolis localization tax impact — 0.05
Income tax impact associated with Swedish Match AB financing — 0.14
Impairment related to the RBH equity investment — 1.49
Fair value adjustment for equity security investments — (0.27)
Tax items — (0.03)
Total Adjustments 0.49 2.05
Adjusted Diluted EPS $7.04 - $7.17 6.57 - 9.1%
Less: Currency (0.22)
Adjusted Diluted EPS, excluding currency $7.26 - $7.39 6.57 - 12.5%
(1) See forecast assumptions for details

All values are in US Dollars.

Reported diluted EPS is forecast to be in a range of $6.55 to $6.68, at prevailing exchange rates, versus reported diluted EPS of $4.52 in 2024. Excluding a total 2025 adjustment of $0.49 per share, this forecast represents a projected increase of 7.2% to 9.1% versus adjusted diluted EPS of $6.57 in 2024. Also excluding an adverse currency impact of $0.22, at prevailing exchange rates, this forecast represents a projected increase of 10.5% to 12.5% versus adjusted diluted EPS of $6.57 in 2024, as outlined in the above table.

2025 Full-Year Forecast Assumptions

This forecast assumes:

•An estimated total international industry volume decline of around 1% for cigarettes and HTUs, excluding China and the U.S.;

•Total cigarette and smoke-free product shipment volume growth for PMI of up to 2% driven by smoke-free products volume growth of 12% to 14%. This factors absolute growth in HTU adjusted IMS volumes at a similar level to 2024, translating into 10% to 12% growth, with the HTU shipment growth rate broadly in line subject to shipment timing and trade inventory movements, and an acceleration in U.S. nicotine pouch shipment volume to reach 780 to 820 million cans, representing growth of 34% to 41%;

•Net revenue growth of around 6% to 8% on an organic basis;

•Organic operating income growth of 10.5% to 12.5%;

•Full-year amortization of acquired intangibles of $0.49 per share, including the amortization of IQOS commercialization rights in the U.S. related to the agreement to end our commercial relationship with Altria Group, Inc. covering IQOS in the U.S.;

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•An effective tax rate, excluding discrete tax events, of approximately 22.5% to 23.5%;

•Operating cash flow of around $11 billion at prevailing exchange rates, subject to year-end working capital requirements. This takes into account non-recurring payments relating to the German tax surcharge and the U.S. Tax Cuts and Jobs Act, which amount to approximately $1 billion;

•Capital expenditures of approximately $1.5 billion, including further investments in ZYN capacity in the U.S.;

•Further net debt to adjusted EBITDA ratio improvement as we continue to target a ratio of around 2x by the end of 2026;

•No dividend income from Rothmans, Benson & Hedges Inc. (our deconsolidated Canadian affiliate);

•No share repurchases in 2025; and

•First quarter adjusted diluted EPS of $1.58 to $1.63, including an estimated adverse currency impact of 4 cents at prevailing exchange rates.

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

Update on CCAA Proceeding in Canada

In October 2024, PMI was informed by its deconsolidated Canadian affiliate, Rothmans, Benson & Hedges Inc. (RBH), that the court-appointed mediator and monitor in RBH’s Companies’ Creditors Arrangement Act (CCAA) proceeding filed a proposed plan of compromise and arrangement outlining certain terms of a comprehensive resolution of tobacco product-related claims and litigation in Canada against RBH and its affiliates. See PMI's Form 8-K dated October 18, 2024 for additional details.

On January 24, 2025, RBH filed an objection to approval of the proposed plan with the CCAA court. The positions taken by RBH in this objection, the positions taken by other parties in related filings, and other related developments narrowed the range of possible outcomes with respect to the allocation of the aggregate settlement amount of CAD 32.5 billion, which was determined to be an indicator that PMI’s investment in RBH may be impaired. Although there remains some uncertainty as to the final terms of the plan, PMI concluded that, the estimated fair value of its investment in RBH was lower than its carrying value and recorded a non-cash impairment charge of $2.3 billion in the consolidated statement of earnings for the year ended December 31, 2024 as a recognized subsequent event, with an adverse impact on reported diluted EPS of $1.49.

Additionally, PMI has determined that if the CCAA court approves the plan as proposed and it is subsequently implemented, RBH would likely remain deconsolidated under U.S. GAAP. Since the first quarter of 2019, and to date, PMI’s reported and adjusted EPS, net debt and other financial results have excluded RBH. However, subject to the terms and requirements of the proposed plan, the payment of certain dividends from RBH to PMI would be permitted going forward, which would be incremental to PMI’s cash flow and adjusted diluted EPS.

New Segment Structure

Following the sale of Vectura Group Ltd. on December 31, 2024, we will update our segment reporting by including the remaining units of Vectura Fertin Pharma in the Europe segment as of the first quarter of 2025. We plan to disclose select historical financial information for the 2022 to 2024 period reflecting this change in the coming weeks.

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Conference Call

A conference call hosted by Jacek Olczak, Chief Executive Officer, and Emmanuel Babeau, Chief Financial Officer, will be webcast at 9:00 a.m., Eastern Time, on February 6, 2025. Access the webcast at www.pmi.com/2024Q4earnings.

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

Full-Year

Estimated international industry volume (excluding China and the U.S.) for cigarettes and HTUs increased by 1.5% to 2.6 trillion units.

Consolidated Shipment Volume

PMI Cigarettes and HTUs Fourth-Quarter Full-Year
(million units) 2024 2023 Change 2024 2023 Change
Cigarettes 152,780 151,094 1.1 % 616,827 612,949 0.6 %
Heated Tobacco Units 35,718 33,972 5.1 % 139,743 125,263 11.6 %
Total Cigarettes and HTUs 188,498 185,066 1.9 % 756,570 738,212 2.5 %
PMI Oral SFP(1) Fourth-Quarter Full-Year
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(million cans) 2024 2023 Change 2024 2023 Change
Nicotine Pouches 183.8 125.7 46.2 % 644.0 421.1 52.9 %
Snus 58.2 61.8 (5.9) % 239.6 240.4 (0.3) %
Moist Snuff 32.0 31.2 2.4 % 134.6 133.7 0.6 %
Other Oral SFP(2) 0.6 0.8 (20.1) % 3.4 4.2 (18.3) %
Total Oral SFP 274.6 219.6 25.0 % 1,021.6 799.3 27.8 %
(1) Excluding snuff, snuff leaf and U.S. chew
(2) Includes chew bags and tobacco bits
Note: Sum may not foot due to rounding.

Fourth-Quarter

PMI's total cigarette and HTU shipment volume increased by 1.9% (HTU shipments increased by 5.1%, and cigarette shipments increased by 1.1%), driven by increases in the SSEA, CIS & MEA Region and the EA, AU & PMI DF Region.

PMI’s total oral product shipment volume in cans increased by 25.0%, predominantly reflecting growth in nicotine pouches.

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Full-Year

PMI's total cigarette and HTU shipment volume increased by 2.5% (HTU shipments increased by 11.6%, while cigarette shipments increased by 0.6%) with increases across all regions except the Americas.

PMI’s total oral product shipment volume in cans increased by 27.8%, primarily reflecting growth in nicotine pouches.

International Share of Market - Cigarettes and HTUs

Fourth-Quarter Full-Year
2024 2023 Change (pp) 2024 2023 Change (pp)
Total International Market Share(1) 28.9 % 28.5 % 0.4 28.7 % 28.3 % 0.4
Cigarettes 23.5 % 23.6 % (0.1) 23.5 % 23.7 % (0.2)
HTU 5.4 % 4.9 % 0.5 5.2 % 4.7 % 0.5
Cigarette over Cigarette Market Share(2) 25.3 % 25.3 % — 25.3 % 25.2 % 0.1
(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 rounding.
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CONSOLIDATED FINANCIAL SUMMARY

Fourth-Quarter

Financial Summary - Quarters Ended December 31, 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 9,706 9,047 7.3% 7.3% 659 — — 482 179 (2)
Cost of Sales(1) (3,423) (3,462) 1.1% 1.7% 39 (33) 14 — (31) 89
Marketing, Administration and Research Costs(2) (3,024) (2,696) (12.2)% (16.9)% (328) 128 (1) — — (455)
Operating Income 3,259 2,889 12.8% 9.1% 370 95 13 482 148 (368)
Restructuring charges (12) — —% —% (12) — — — — (12)
Amortization of Intangibles (247) (129) (91.5)% (91.5)% (118) — — — — (118)
Loss on sale of Vectura Group (1) — —% —% (1) — — — — (1)
Charges related to the war in Ukraine — (34) +100% +100% 34 — — — — 34
Adjusted Operating Income 3,519 3,052 15.3% 11.8% 467 95 13 482 148 (271)
Adjusted Operating Income Margin 36.3 % 33.7 2.6pp 1.4pp
(1) Includes 5 million in 2024 and 18 million in 2023 related to the special items below.
(2) Includes 255 million in 2024 and 145 million in 2023 related to the special items below.

All values are in US Dollars.

Net revenues increased by 7.3% on an organic basis, mainly reflecting: a favorable pricing variance, primarily due to higher combustible tobacco pricing; and favorable volume/mix, mainly driven by higher smoke-free products volume, notwithstanding unfavorable cigarette mix.

Adjusted operating income increased by 11.8% on an organic basis, mainly reflecting: the same factors as for net revenues; partly offset by higher marketing, administration and research costs, notwithstanding lower manufacturing costs due to improved productivity.

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Full-Year

Financial Summary - Years Ended December 31, 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 37,878 35,174 7.7 % 10.1 % 2,704 (841) — 2,203 1,268 74
Termination of distribution arrangement in the Middle East — (80) +100% +100% 80 — — — — 80
Adjusted Net Revenues 37,878 35,254 7.4 % 9.8 % 2,624 (841) — 2,203 1,268 (6)
Net Revenues 37,878 35,174 7.7 % 10.1 % 2,704 (841) — 2,203 1,268 74
Cost of Sales (1) (13,329) (12,893) (3.4) % (4.5) % (436) 101 47 — (504) (80)
Marketing, Administration and Research Costs (2) (11,147) (10,060) (10.8) % (11.4) % (1,087) 58 (1) — — (1,144)
Impairment of Goodwill — (665) +100% +100% 665 — — — — 665
Operating Income 13,402 11,556 16.0 % 21.5 % 1,846 (682) 46 2,203 764 (485)
Restructuring charges (180) (109) (65.1) % (65.1) % (71) — — — — (71)
Loss on sale of Vectura Group (199) — — % — % (199) — — — — (199)
Egypt sales tax charge (45) — — % — % (45) — — — — (45)
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 (835) (497) (68.0) % (68.0) % (338) — — — — (338)
Charges related to the war in Ukraine — (53) +100% +100% 53 — — — — 53
Swedish Match AB acquisition accounting related items — (18) +100% +100% 18 — — — — 18
South Korea Indirect Tax Charge — (204) +100% +100% 204 — — — — 204
Termination of agreement with Foundation for a Smoke-Free World — (140) +100% +100% 140 — — — — 140
Adjusted Operating Income 14,688 13,337 10.1 % 14.9 % 1,351 (682) 46 2,203 764 (980)
Adjusted Operating Income Margin 38.8 % 37.8 1.0pp 1.8pp
(1) Includes 51 million in 2024 and 90 million in 2023 related to the special items below.
(2) Includes 1,235 million in 2024 and 946 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.

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Adjusted net revenues increased by 9.8% 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 14.9% on an organic basis, mainly reflecting: the same factors as for net revenues; 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 higher manufacturing costs, 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

Fourth-Quarter

The estimated total market for cigarettes and HTUs in the Region was broadly stable (130.8 billion units), with a 1.3% decrease for cigarettes and continued HTU growth. Notable decreases in the estimated total market in France (down by 11.7%), and the United Kingdom (down by 17.6%) were offset by Ukraine (up by 8.7%), Poland (up by 3.8%), and Spain (up by 4.1%).

Full-Year

The estimated total market for cigarettes and HTUs in the Region was broadly stable (541.9 billion units), reflecting a 1.4% decrease for cigarettes and continued HTU growth. Similar to the quarter, notable decreases in the estimated total market in France (down by 12.5%), and the United Kingdom (down by 12.6%) were largely offset by Ukraine (up by 4.3%), Bulgaria (up by 7.3%), and Poland (up by 2.3%).

Europe Key Data Fourth-Quarter Full-Year
Change Change
2024 2023 % / pp 2024 2023 % / pp
PMI Shipment Volume (million units)
Cigarettes 38,388 39,330 (2.4) % 162,679 165,593 (1.8) %
Heated Tobacco Units 15,195 14,310 6.2 % 53,669 49,269 8.9 %
Total Europe 53,583 53,640 (0.1) % 216,348 214,862 0.7 %
PMI Market Share
Cigarettes 29.9 % 30.2 % (0.3) 30.0 % 30.3 % (0.3)
Heated Tobacco Units 10.8 % 10.0 % 0.8 10.0 % 9.1 % 0.9
Total Europe 40.7 % 40.2 % 0.5 40.0 % 39.4 % 0.6
Note: Sum may not foot due to rounding.
  • 11 -
Europe Oral SFP Fourth-Quarter Full-Year
2024 2023 Change 2024 2023 Change
PMI Shipment Volume (million cans)
Nicotine Pouches 13.6 8.6 58.0 % 48.8 34.8 40.2 %
Snus 57.5 61.1 (5.9) % 236.7 236.4 0.1 %
Other Oral SFP(1) 0.6 0.8 (20.1) % 3.4 4.2 (18.6) %
Total Europe 71.7 70.4 1.7 % 288.9 275.4 4.9 %
(1) Includes chew bags and tobacco bits
Note: Sum may not foot due to rounding.

Fourth-Quarter

PMI's total cigarette and HTU shipment volume in the Region was broadly flat (53.6 billion units). Total cigarette and HTU shipment volume decreased notably in Italy (down by 4.6%) and France (down by 13.5%), and increased notably in Poland (up by 10.4%) as well as Ukraine (up by 11.6%).

PMI's estimated HTU adjusted in-market sales volume in the Region increased by close to 10% in the quarter, reflecting continued growth momentum for IQOS. HTU shipments increased by 6.2%.

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

Oral SFP shipments increased by 1.7%, driven by nicotine pouches (up by 58.0%).

Full-Year

PMI's total cigarette and HTU shipment volume in the Region increased by 0.7% to 216.3 billion units. Total cigarette and HTU shipment volume increased notably in Poland (up by 7.9%) and Ukraine (up by 9.4%), and decreased notably in France (down by 17.3%) as well as the Netherlands (down by 20.9%).

PMI's estimated HTU adjusted in-market sales volume in the Region increased by 9.4%, reflecting continued growth momentum for IQOS, partly offset by the impact from the EU characterizing flavor ban. HTU shipments increased by 8.9%.

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

Oral SFP shipments increased by 4.9%, driven by growth of nicotine pouches (up by 40.2%).

  • 12 -

Financial Summary

Fourth-Quarter

Financial Summary - Quarters Ended <br>December 31, 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 4,056 3,766 7.7% 5.5% 290 82 — 202 6 —
Operating Income 1,802 1,618 11.4% 11.4% 184 — — 202 (23) 5
Adjustments (1) (40) (72) 44.3% 44.3% 32 — — — — 32
Adjusted Operating Income 1,843 1,690 9.1% 9.1% 153 — — 202 (23) (28)
Adjusted Operating Income Margin 45.4 % 44.9 0.5pp 1.5pp
(1) See Schedule 10 in Exhibit 99.2 to the Form 8-K dated February 6, 2025, for additional detail.

All values are in US Dollars.

Net revenues increased by 5.5% on an organic basis, reflecting a favorable pricing variance, mainly driven by higher combustible tobacco pricing.

Adjusted operating income increased by 9.1% on an organic basis, primarily reflecting the same factor as for net revenues.

Full-Year

Financial Summary - <br>Years Ended <br>December 31, 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 15,357 14,231 7.9 % 7.1 % 1,126 116 — 798 212 —
Operating Income 6,938 6,169 12.5 % 12.4 % 769 6 — 798 90 (125)
Adjustments (1) (160) (323) 50.3 % 50.3 % 163 — — — — 163
Adjusted Operating Income 7,099 6,492 9.3 % 9.3 % 607 6 — 798 90 (288)
Adjusted Operating Income Margin 46.2 % 45.6 0.6pp 0.9pp
(1) See Schedule 11 in Exhibit 99.2 to the Form 8-K dated February 6, 2025, for additional detail.

All values are in US Dollars.

Net revenues increased by 7.1% 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 cigarette volume and adverse cigarette mix.

Adjusted operating income increased by 9.3% on an organic basis, primarily reflecting: the same factors as for net revenues; partly offset by higher marketing, administration and research costs.

  • 13 -

SSEA, CIS & MEA REGION

Total Market, PMI Shipment & Market Share Commentaries

Fourth-Quarter

The estimated total market for cigarettes and HTUs in the Region increased by 3.3% to 402.0 billion units. The increase in the estimated total market was mainly due to Vietnam (up by 14.4%), Egypt (up by 16.1%), and Turkey (up by 6.6%), partly offset by Bangladesh (down by 7.8%).

Full-Year

The estimated total market for cigarettes and HTUs in the Region increased by 2.8% to 1,571.9 billion units. The increase in the estimated total market was mainly due to Turkey (up by 9.5%), and Egypt (up by 11.3%), partly offset by Bangladesh (down by 5.0%), and Thailand (down by 13.7%).

Our Regional market share increased by 0.4 points to 23.8%.

PMI Shipment Volume Fourth-Quarter Full-Year
(million units) 2024 2023 Change 2024 2023 Change
Cigarettes 85,796 83,009 3.4 % 344,834 333,353 3.4 %
Heated Tobacco Units 8,428 7,502 12.3 % 28,570 24,890 14.8 %
Total SSEA, CIS & MEA 94,224 90,511 4.1 % 373,404 358,243 4.2 %

Fourth-Quarter

PMI's total cigarette and HTU shipment volume in the Region increased by 4.1% to 94.2 billion units, with notable increases in Turkey (up by 9.3%) and India (up 51.2%), partly offset by Egypt (down by 12.8%) and the Philippines (down by 8.7%) . PMI's estimated HTU adjusted in-market sales volume increased by around 16%, with approximately 12% HTU shipment volume growth.

Full-Year

PMI's total cigarette and HTU shipment volume in the Region increased by 4.2% to 373.4 billion units, mainly driven by Turkey (up by 13.4%), partly offset by Indonesia (down by 3.7%). PMI's estimated HTU adjusted in-market sales volume increased by approximately 15.6%, with about 15% HTU shipment volume growth.

  • 14 -

Financial Summary

Fourth-Quarter

Financial Summary - Quarters Ended <br>December 31, 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 2,868 2,707 5.9% 6.6% 161 (17) — 141 37 —
Operating Income 806 699 15.3% 12.3% 107 8 13 141 28 (83)
Adjustments (1) (4) (5) 16.1% 16.1% 1 — — — — 1
Adjusted Operating Income 810 704 15.1% 12.1% 106 8 13 141 28 (84)
Adjusted Operating Income Margin 28.2 % 26.0 2.2pp 1.3pp
(1) See Schedule 10 in Exhibit 99.2 to the Form 8-K dated February 6, 2025, for additional detail.

All values are in US Dollars.

Net revenues increased by 6.6% on an organic basis, primarily reflecting: a favorable pricing variance, predominantly driven by higher combustible tobacco pricing; and favorable volume/mix, driven by higher cigarette and HTU volume, partly offset by unfavorable mix.

Adjusted operating income increased by 12.1% on an organic basis, primarily reflecting: the same factors as for net revenues; partly offset by higher marketing, administration and research costs.

  • 15 -

Full-Year

Financial Summary - Years Ended December 31, 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 11,261 10,629 5.9 % 11.7 % 632 (610) — 821 343 78
Adjustment (1) — (80) +100% +100% 80 — — — — 80
Adjusted Net Revenues 11,261 10,709 5.2 % 10.9 % 552 (610) — 821 343 (2)
Net Revenues 11,261 10,629 5.9 % 11.7 % 632 (610) — 821 343 78
Operating Income 3,429 3,136 9.3 % 26.8 % 293 (592) 46 821 145 (127)
Adjustments (2) (63) (173) 63.4 % 63.4 % 110 — — — — 110
Adjusted Operating Income 3,492 3,309 5.5 % 22.0 % 183 (592) 46 821 145 (236)
Adjusted Operating Income Margin 31.0 % 30.9 0.1pp 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 February 6, 2025, for additional detail.

All values are in US Dollars.

Adjusted net revenues increased by 10.9% on an organic basis, primarily reflecting: a favorable pricing variance, predominantly driven by higher combustible tobacco pricing; and favorable volume/mix, driven by higher cigarette and HTU volume coupled with favorable mix.

Adjusted operating income increased by 22.0% on an organic basis, primarily reflecting: a favorable pricing variance, predominantly driven by higher combustible tobacco pricing; and favorable volume/mix, driven by higher cigarette and HTU volume; partly offset by higher manufacturing costs (primarily due to higher cost of tobacco leaf) as well as higher marketing, administration and research costs.

EA, AU AND PMI DF REGION

Total Market, PMI Shipment & Market Share Commentaries

Fourth-Quarter

The estimated total market for cigarettes and HTUs in the Region, excluding China, increased by 0.8% to 81.1 billion units, with a decrease in cigarettes, offset by HTU growth. The increase in the estimated total market was mainly driven by International Duty Free (up by 14.4%) and Japan (up by 2.6%), partly offset by Taiwan (down by 7.4%) and Australia (down by 26.5%).

Full-Year

The estimated total market for cigarettes and HTUs in the Region, excluding China, was broadly stable (318.9 billion units), with a decrease in cigarettes, largely offset by HTU growth. The decrease in the estimated total market in Australia (down by 28.5%) and Korea (down by 2.2%) was offset by International Duty Free (up by 11.3%) and Japan (up by 1.4%).

  • 16 -

Our Regional market share increased by 1.3 points to 31.3%.

PMI Shipment Volume Fourth-Quarter Full-Year
(million units) 2024 2023 Change 2024 2023 Change
Cigarettes 11,424 11,287 1.2 % 47,670 50,689 (6.0) %
Heated Tobacco Units 11,945 11,958 (0.1) % 56,882 50,519 12.6 %
Total EA, AU & PMI DF 23,369 23,245 0.5 % 104,552 101,208 3.3 %

Fourth-Quarter

PMI's total cigarette and HTU shipment volume in the Region increased by 0.5% to 23.4 billion units with growth in International Duty Free (up by 21.5%), partly offset by Japan (down by 1.9%).

PMI's estimated HTU adjusted in-market sales volume in the Region increased by around 14% and ahead of shipments, which were higher in the first half of the year.

Full-Year

PMI's total cigarette and HTU shipment volume in the Region increased by 3.3% to 104.6 billion units, driven by Japan (up by 6.4%), partly offset by Australia (down by 28.5%).

PMI's estimated HTU adjusted in-market sales volume in the Region increased by 14.5%. HTU shipments increased by 12.6%.

Financial Summary

Fourth-Quarter

Financial Summary - Quarters Ended <br>December 31, 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 1,434 1,430 0.3% 2.2% 4 (27) — 36 (5) —
Operating Income 574 576 (0.3)% 6.8% (2) (41) — 36 6 (3)
Adjustments (1) (1) — —% —% (1) — — — — (1)
Adjusted Operating Income 575 576 (0.2)% 6.9% (1) (41) — 36 6 (3)
Adjusted Operating Income Margin 40.1 % 40.3 (0.2)pp 1.9pp
(1) See Schedule 10 in Exhibit 99.2 to the Form 8-K dated February 6, 2025, for additional detail.

All values are in US Dollars.

Net revenues increased by 2.2% on an organic basis, primarily reflecting a favorable pricing variance.

Adjusted operating income increased by 6.9% on an organic basis, reflecting the same factor as for net revenues.

  • 17 -

Full-Year

Financial Summary - Years Ended<br>December 31, 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 6,393 6,201 3.1 % 8.6 % 192 (341) — 325 208 —
Operating Income 2,878 2,539 13.4 % 25.1 % 339 (298) — 325 59 253
Adjustments (1) (3) (250) 98.8 % 98.8 % 247 — — — — 247
Adjusted Operating Income 2,881 2,789 3.3 % 14.0 % 92 (298) — 325 59 5
Adjusted Operating Income Margin 45.1 % 45.0 0.1pp 2.2pp
(1) See Schedule 11 in Exhibit 99.2 to the Form 8-K dated February 6, 2025, for additional detail.

All values are in US Dollars.

Net revenues increased by 8.6% 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 14.0% on an organic basis, a favorable pricing variance and favorable volume/mix, mainly driven by higher HTU volume, partly offset by lower cigarette volume, while lower manufacturing costs were largely offset by higher marketing, administration and research costs.

AMERICAS REGION

Total Market, PMI Shipment & Market Share Commentaries

Fourth-Quarter

The estimated total market for cigarettes and HTUs in the Region, excluding the U.S., decreased by 1.4% to 49.1 billion units, primarily reflecting a decline in the cigarette market. The decrease in the estimated total market was mainly due to Colombia (down by 12.3%), and Canada (down by 7.7%), partly offset by Brazil (up by 2.1%), and Argentina (up by 1.2%).

Full-Year

The estimated total market for cigarettes and HTUs in the Region, excluding the U.S., decreased by 1.9% to 185.1 billion units, primarily reflecting a decline for cigarettes. The decrease in the estimated total market was mainly due to Argentina (down by 8.4%) and Canada (down by 12.3%), partly offset by Brazil (up by 6.8%).

Our Regional market share, excluding the U.S., was flat at 33.7%.

PMI Shipment Volume Fourth-Quarter Full-Year
(million units) 2024 2023 Change 2024 2023 Change
Cigarettes 17,172 17,468 (1.7) % 61,644 63,314 (2.6) %
Heated Tobacco Units 150 202 (25.7) % 622 585 6.3 %
Total Americas 17,322 17,670 (2.0) % 62,266 63,899 (2.6) %
Note: Sum may not foot due to rounding.
  • 18 -
Americas Oral SFP1 Fourth-Quarter Full-Year
2024 2023 Change 2024 2023 Change
PMI Shipment Volume (million cans)
Nicotine Pouches 165.1 116.3 42.0 % 581.4 384.8 51.1 %
Moist Snuff 32.0 31.2 2.4 % 134.6 133.7 0.6 %
Snus 0.7 0.8 (9.0) % 2.9 4.0 (25.8) %
Total Americas 197.8 148.3 33.4 % 718.9 522.5 37.6 %
(1) Excluding U.S. chew;<br>Note: Volumes of other oral SFP introduced in Q3'24 are not material. Sum may not foot due to rounding.

Fourth-Quarter

PMI's total cigarette and HTU shipment volume in the Region decreased by 2.0% to 17.3 billion units, mainly due to Canada (down by 20.2%) and Mexico (down by 2.4%), partly offset by Argentina (up by 2.5%).

Oral products shipments increased by 33.4%, predominantly driven by ZYN nicotine pouches in the U.S.

Cigar shipment volume increased by 2.4%, while gross profit grew high-single digits.

Full-Year

PMI's total cigarette and HTU shipment volume in the Region decreased by 2.6% to 62.3 billion units, mainly due to Argentina (down by 8.1%), partly offset by Brazil (up by 8.5%).

Oral products shipments increased by 37.6%, predominantly driven by ZYN nicotine pouches in the U.S.

Cigar shipment volume decreased by 11%, while gross profit grew mid-single digits.

Financial Summary

Fourth-Quarter

Financial Summary - Quarters Ended <br>December 31, 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 1,261 1,075 17.3% 21.0% 186 (40) — 87 141 (2)
Operating Income 129 58 +100% -(100)% 71 129 — 87 137 (282)
Adjustments (1) (210) (71) -(100)% -(100)% (139) — — — — (139)
Adjusted Operating Income 339 129 +100% 62.8% 210 129 — 87 137 (142)
Adjusted Operating Income Margin 26.9 % 12.0 14.9pp 4.1pp
(1) See Schedule 10 in Exhibit 99.2 to the Form 8-K dated February 6, 2025, for additional detail.

All values are in US Dollars.

Net revenues increased by 21.0% on an organic basis, primarily reflecting: favorable volume/mix, predominantly driven by nicotine pouches in the U.S., as well as a favorable pricing variance, partly offset by lower cigarette volume and unfavorable cigarette mix outside of the U.S.

  • 19 -

Adjusted operating income increased by 62.8% 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, administration and research costs, including incremental investment in the U.S.

Full-Year

Financial Summary - <br>Years Ended <br>December 31, 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 4,534 3,807 19.1 % 19.3 % 727 (9) — 233 505 (2)
Operating Income 548 582 (5.8) % (41.1) % (34) 205 — 233 470 (942)
Adjustments (1) (788) (297) -(100)% -(100)% (491) — — — — (491)
Adjusted Operating Income 1,336 879 52.0 % 28.7 % 457 205 — 233 470 (451)
Adjusted Operating Income Margin 29.5 % 23.1 6.4pp 1.8pp
(1) See Schedule 11 in Exhibit 99.2 to the Form 8-K dated February 6, 2025, for additional detail.

All values are in US Dollars.

Net revenues increased by 19.3% 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 and ZYN pricing.

Adjusted operating income increased by 28.7% on an organic basis, mainly reflecting: favorable volume/mix and favorable price variance, mainly due to the same factors as for net revenues, partly offset by higher marketing, administration and research costs, including incremental investment in the U.S.

WELLNESS AND HEALTHCARE

Fourth-Quarter

Financial Summary - Quarters Ended <br>December 31, 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 87 69 26.1 % 23.2 % 18 2 — 16 — —
Operating Income / (Loss) (52) (62) 16.1 % 17.7 % 10 (1) — 16 — (5)
Adjustments (1) (5) (15) 67.7 % 67.7 % 10 — — — — 10
Adjusted Operating Income / (Loss) (48) (47) (2.1) % — % (1) (1) — 16 — (14)
Adjusted Operating Income / (Loss) Margin (55.2) % (68.1) 12.9pp 12.8pp
(1) See Schedule 10 in Exhibit 99.2 to the Form 8-K dated February 6, 2025, for additional detail.

All values are in US Dollars.

  • 20 -

Net revenues increased by 23.2% on an organic basis. The adjusted operating loss of $48 million was primarily due to R&D costs.

Full-Year

Financial Summary - Years Ended<br>December 31, 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 333 306 8.8 % 7.8 % 27 3 — 26 — (2)
Operating Income / (Loss) (391) (870) 55.1 % 55.4 % 479 (3) — 26 — 456
Adjustments (1) (271) (738) 63.2 % 63.2 % 467 — — — — 467
Adjusted Operating Income / (Loss) (120) (132) 9.1 % 11.4 % 12 (3) — 26 — (10)
Adjusted Operating Income / (Loss) Margin (36.0) % (43.1) 7.1pp 7.6pp
(1) See Schedule 11 in Exhibit 99.2 to the Form 8-K dated February 6, 2025, for additional detail.

All values are in US Dollars.

Net revenues increased by 7.8% on an organic basis. The adjusted operating loss of $120 million was primarily due to R&D and administration costs.

Philip Morris International: Delivering a Smoke-Free Future

Philip Morris International 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 $14 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. Following a robust science-based review, the U.S. Food and Drug Administration has authorized the marketing of Swedish Match’s General snus and ZYN nicotine pouches and versions of PMI’s IQOS devices and consumables - the first-ever such authorizations in their respective categories. Versions of IQOS devices and consumables and General snus also obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA. As of December 31, 2024, PMI's smoke-free products were available for sale in 95 markets, and PMI estimates that 38.6 million adults around the world use PMI's smoke-free products. The smoke-free business accounted for approximately 39% of PMI’s total full-year 2024 net revenues. With a strong foundation and significant expertise in life sciences, PMI has a long-term ambition to expand into wellness and healthcare areas and aims to enhance life through the delivery of seamless health experiences. References to “PMI”, “we”, “our” and “us” mean Philip Morris International Inc., and its subsidiaries. For more information, please visit www.pmi.com and www.pmiscience.com.

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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; business plans and strategies; plans and strategies related to the CCAA proceedings; the likelihood and impact to PMI of the proposed CCAA plan; and the likelihood and impact of RBH remaining deconsolidated. 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, Quarterly Report on Form 10-Q for the third quarter ended September 30, 2024, and the Form 10-K for the fourth quarter and year ended December 31, 2024, which will be filed later today. PMI cautions that the foregoing list of important factors is not a complete discussion of all potential risks and uncertainties. PMI does not undertake to update any forward-looking statement that it may make from time to time, except in the normal course of its public disclosure obligations.

Non-GAAP Measures, Glossary and Explanatory Notes

Reconciliations of non-GAAP measures in this release to the most directly comparable U.S. GAAP measures can be found in Exhibit 99.2 to the Form 8-K dated February 6, 2025, and at www.pmi.com/2024Q4earnings. A

  • 22 -

glossary of key terms, definitions and explanatory notes is available in the aforementioned Exhibit 99.2 and on the same webpage, where additional financial schedules, as well as adjustments and other calculations have also been made available.

Management reviews net revenues, gross profit, operating income, operating income margin, operating cash flow and earnings per share, or "EPS," on an adjusted basis, which may exclude the impact of currency and other items such as acquisitions, restructuring 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 | | --- || Fourth-Quarter | | | Full Year | | | --- | --- | --- | --- | --- | | 2024 | 2023 | | 2024 | 2023 | | $ (0.38) | $ 1.41 | Reported Diluted EPS | $ 4.52 | $ 5.02 | | 0.01 | — | Restructuring charges | 0.10 | 0.06 | | — | — | Impairment of goodwill and other intangibles | 0.01 | 0.44 | | 0.11 | 0.07 | Amortization of intangibles | 0.40 | 0.25 | | — | 0.02 | Charges related to the war in Ukraine | — | 0.03 | | 0.05 | — | Megapolis localization tax impact | 0.05 | — | | 0.14 | (0.14) | Income tax impact associated with Swedish Match AB financing | 0.14 | (0.11) | | — | — | Egypt sales tax charge | 0.03 | — | | — | — | Loss on sale of Vectura Group | 0.13 | — | | 1.49 | — | Impairment related to the RBH equity investment | 1.49 | — | | 0.13 | — | Fair value adjustment for equity security investments | (0.27) | (0.02) | | — | — | Tax items | (0.03) | 0.11 | | — | — | Other adjustments impacting 2023 only* | — | 0.23 | | $ 1.55 | $ 1.36 | Adjusted Diluted EPS | $ 6.57 | $ 6.01 | | 0.06 | | Less: Currency | (0.38) | | | $ 1.49 | $ 1.36 | Adjusted Diluted EPS, excluding Currency | $ 6.95 | $ 6.01 |

(*) Represents adjustments impacting 2023 only: South Korea indirect tax charge (11 cents), Termination of agreement with Foundation for a Smoke-Free World (7 cents), Termination of distribution arrangement in the Middle East (4 cents), Swedish Match AB acquisition accounting related items (1 cent)

Note: The Income tax impact associated with Swedish Match AB financing was due to a deferred tax impact for unrealized foreign currency gains and losses on intercompany loans related to the Swedish Match acquisition financing reflected in the consolidated statements of earnings, while the underlying pre-tax foreign currency movements fully offset in the consolidated statements of earnings and were reflected as currency translation adjustments in the consolidated statements of stockholders' (deficit) equity.

  • 23 -
Appendix 1
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Key Market Data
Quarters Ended December 31,
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) 663.0 650.2 2.0 188.5 185.1 1.9 152.8 151.1 1.1 35.7 34.0 5.1 28.9 28.5 0.4 5.4 4.9 0.5
Europe
France 6.3 7.1 (11.7) 2.4 2.8 (13.5) 2.4 2.7 (13.5) — — — 41.8 43.1 (1.3) 0.6 0.7 (0.1)
Germany(3) 16.2 16.0 1.5 6.6 6.6 (0.5) 5.4 5.7 (3.8) 1.1 1.0 19.0 38.4 38.9 (0.5) 6.6 5.6 1.0
Italy(3) 17.9 18.2 (1.8) 10.1 10.6 (4.6) 6.4 6.5 (2.5) 3.7 4.1 (7.9) 53.1 53.7 (0.6) 16.5 17.2 (0.7)
Poland(3) 13.6 13.1 3.8 6.2 5.6 10.4 4.8 4.3 9.6 1.4 1.3 13.4 45.2 43.8 1.4 9.5 9.9 (0.4)
Spain 11.0 10.6 4.1 2.8 2.9 (3.4) 2.5 2.6 (6.9) 0.4 0.3 27.6 29.9 28.8 1.1 3.5 2.4 1.1
SSEA, CIS & MEA
Egypt 22.5 19.3 16.1 5.4 6.2 (12.8) 4.9 5.6 (12.0) 0.5 0.6 (20.1) 24.5 31.3 (6.8) 1.7 1.9 (0.2)
Indonesia(4) 74.1 72.7 1.9 20.3 20.5 (1.1) 19.9 20.3 (1.9) 0.4 0.2 90.0 27.4 28.2 (0.8) 0.5 0.3 0.2
Philippines 10.6 10.7 (1.4) 5.3 5.8 (8.7) 5.2 5.7 (9.1) 0.1 0.1 18.9 49.7 53.7 (4.0) 0.7 0.6 0.1
Russia 54.8 52.4 4.5 18.0 16.5 9.1 12.5 11.4 9.8 5.5 5.1 7.7 32.9 31.3 1.6 8.7 8.3 0.4
Turkey 38.6 36.2 6.6 20.4 18.7 9.3 20.4 18.7 9.3 — — — 52.9 51.5 1.4 — — —
EA, AU & PMI DF
Australia 1.1 1.6 (26.5) 0.4 0.5 (29.6) 0.4 0.5 (29.6) — — — 31.3 32.7 (1.4) — — —
Japan(2) 38.8 37.9 2.6 13.7 13.9 (1.9) 3.9 3.9 (0.2) 9.8 10.0 (2.6) 41.8 39.9 1.9 30.5 27.6 2.9
South Korea 17.6 17.8 (1.3) 3.4 3.4 (0.2) 2.0 2.1 (6.4) 1.4 1.3 9.6 19.5 19.3 0.2 8.2 7.5 0.7
Americas
Argentina 7.2 7.1 1.2 4.5 4.4 2.5 4.5 4.4 2.5 — — — 62.5 61.7 0.8 — — —
Mexico 8.6 8.8 (2.2) 5.6 5.7 (2.4) 5.5 5.7 (2.7) 0.1 — — 65.0 65.1 (0.1) 0.7 0.5 0.2
(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 (see Glossary for definition); Total Market is based on reported IMS
(4) 2024 includes 0.6 billion units of cigarettes shipment volume under an arrangement where PMI acts as brand management and fulfillment services agent
Note: % change for Total Market and PMI shipments is computed based on millions of units. "-" indicates volume below 50 million units and market share below 0.1%
Appendix 2
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Key Market Data
Years Ended December 31,
Market Total Market,<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) 2,617.9 2,579.4 1.5 756.6 738.2 2.5 616.8 612.9 0.6 139.7 125.3 11.6 28.7 28.3 0.4 5.2 4.7 0.5
Europe
France 26.1 29.8 (12.5) 10.7 13.0 (17.3) 10.5 12.8 (17.3) 0.2 0.2 (19.9) 41.2 42.5 (1.3) 0.6 0.7 (0.1)
Germany(3) 69.2 69.0 0.4 26.7 26.5 0.9 22.4 23.3 (4.0) 4.3 3.1 36.9 38.7 39.0 (0.3) 6.2 5.3 0.9
Italy(3) 73.6 73.3 0.5 39.1 39.7 (1.4) 27.3 27.3 — 11.8 12.4 (4.6) 53.6 53.6 — 16.9 16.8 0.1
Poland(3) 58.0 56.7 2.3 25.6 23.7 7.9 20.1 18.7 8.0 5.4 5.0 7.6 43.9 41.9 2.0 9.1 9.0 0.1
Spain 44.3 43.6 1.6 12.7 12.9 (1.2) 11.4 11.8 (3.0) 1.3 1.1 18.7 29.4 29.3 0.1 2.9 2.3 0.6
SSEA, CIS & MEA
Egypt 82.5 74.2 11.3 23.9 24.3 (1.7) 22.3 23.0 (3.0) 1.6 1.3 21.8 28.9 32.8 (3.9) 1.8 1.7 0.1
Indonesia(4) 295.5 292.2 1.1 80.8 84.0 (3.7) 79.6 83.4 (4.5) 1.2 0.6 +100 27.4 28.7 (1.3) 0.4 0.2 0.2
Philippines 41.0 42.9 (4.3) 21.1 23.8 (11.4) 20.8 23.5 (11.8) 0.3 0.2 29.1 51.3 55.4 (4.1) 0.7 0.5 0.2
Russia 216.5 203.4 6.4 69.9 64.8 7.9 51.4 47.9 7.4 18.5 16.9 9.5 32.3 31.8 0.5 8.6 8.0 0.6
Turkey 150.5 137.4 9.5 78.2 69.0 13.4 78.2 69.0 13.4 — — — 52.0 50.2 1.8 — — —
EA, AU & PMI DF
Australia 5.1 7.2 (28.5) 1.8 2.5 (28.5) 1.8 2.5 (28.5) — — — 34.8 34.8 — — — —
Japan(2) 151.1 149.0 1.4 64.8 60.9 6.4 16.5 17.9 (7.5) 48.3 43.0 12.2 41.3 39.6 1.7 29.8 26.7 3.1
South Korea 70.5 72.0 (2.2) 14.0 14.0 (0.1) 8.3 8.9 (6.7) 5.7 5.1 11.4 19.9 19.5 0.4 8.1 7.1 1.0
Americas
Argentina 26.4 28.8 (8.4) 16.4 17.8 (8.1) 16.4 17.8 (8.1) — — — 62.1 61.9 0.2 — — —
Mexico 29.5 30.0 (1.7) 18.5 18.9 (2.2) 18.3 18.8 (2.6) 0.2 0.1 54.1 62.6 63.0 (0.4) 0.7 0.5 0.2
(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 (see Glossary for definition); Total Market is based on reported IMS
(4) 2024 includes 0.6 billion units of cigarettes shipment volume under an arrangement where PMI acts as brand management and fulfillment services agent
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 Full Year and Fourth-Quarter Results

February 6, 2025

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 data from a number of internal and external sources and may, in defined instances, exclude the People's Republic of China. Past reported periods may be updated to ensure comparability and to incorporate the most current information for industry and market share reporting.

•"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 trade channels, which serve the end legal age nicotine users. Depending on the market and distribution model, IMS may represent an estimate. Consequently, past reported periods may be updated to ensure comparability and to incorporate the most current information.

•From time to time, PMI’s shipment volumes and IMS 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, IMS, certain estimated total industry/market volumes and estimated market share 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's shipment volumes, IMS, estimated total industry/market volumes and estimated market share in such circumstances on a basis that excludes the impact of distributor and/or estimated trade inventory movements, 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.

•The business operations of PMI's Wellness and Healthcare segment are managed and evaluated separately from the geographical segments.

•On September 17, 2024, PMI announced the execution of a definitive agreement pursuant to which PMI’s direct, wholly-owned subsidiary, Vectura Fertin Pharma Inc., agreed to sell Vectura Group Ltd. (formerly Vectura Group plc.) to Molex Asia Holdings Ltd. The transaction was completed on December 31, 2024.

•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 restructuring 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, restructuring 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, April 1, 2022, for Turkey, and October 1, 2024 for Egypt.

•"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 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 third 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.

•Egypt sales tax charge: In the third quarter of 2024, following a ruling issued by the Higher Administrative Court in Egypt and subsequent evaluation of available remedies, PMI concluded that an adverse outcome was probable and recorded a pre-tax charge of $45 million in relation to tax assessments for general sales tax deducted on imported cutfiller for the years 2014 to 2016.

•Loss on Sale of Vectura Group: In September 2024, PMI announced the execution of a definitive agreement to sell Vectura to Molex Asia Holdings Ltd. On December 31, 2024, we completed the sale. As a result, PMI recorded a pre-tax loss in 2024 of $199 million, primarily related to an impairment charge of $198 million recorded in the third quarter related to Vectura's classification as held for sale.

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 Wellness and Healthcare business.

•"Heated tobacco units" or "HTU" is the term PMI uses to refer to heated tobacco consumables, which include our BLENDS, DELIA, HEETS, HEETS Creations (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 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.

1 Minimum 18 years or older depending on market regulation

•“Total PMI oral smokeless users” are defined as the estimated number of Legal Age (minimum 21 years in the U.S and minimum 18 years12outside 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.

•“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.3

•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 approximately 20 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

3

Select Financial Information and Reconciliations of Non-GAAP Financial Measures

Schedule 1 (1/2)
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Diluted Earnings Per Share (EPS)
( in millions, except per share data) / (Unaudited)
Quarters Ended Diluted EPS Years Ended
December 31,
$ (0.38) 2024 Diluted Earnings Per Share (1) $ 4.52
$ 1.41 2023 Diluted Earnings Per Share (1) $ 5.02
$ (1.79) Change $ (0.50)
-(100)% % Change (10.0)%
Reconciliation:
$ 1.41 2023 Diluted Earnings Per Share (1) $ 5.02
— 2023 Restructuring charges 0.06
0.07 2023 Amortization of intangibles 0.25
— 2023 Impairment of goodwill and other intangibles 0.44
0.02 2023 Charges related to the war in Ukraine 0.03
— 2023 Termination of distribution arrangement in the Middle East 0.04
— 2023 South Korea indirect tax charge 0.11
— 2023 Termination of agreement with Foundation for a Smoke-Free World 0.07
— 2023 Swedish Match AB acquisition accounting related items 0.01
(0.14) 2023 Income tax impact associated with Swedish Match AB financing (0.11)
— 2023 Fair value adjustment for equity security investments (0.02)
— 2023 Tax Items 0.11
(0.01) 2024 Restructuring charges (0.10)
— 2024 Egypt sales tax charge (0.03)
— 2024 Loss on sale of Vectura Group (0.13)
— 2024 Impairment of other intangibles (0.01)
(0.11) 2024 Amortization of intangibles (0.40)
(0.14) 2024 Income tax impact associated with Swedish Match AB financing (0.14)
(0.05) 2024 Megapolis localization tax impact (0.05)
(1.49) 2024 Impairment related to the RBH equity investment (1.49)
(0.13) 2024 Fair value adjustment for equity security investments 0.27
— 2024 Tax Items 0.03
0.06 Currency (0.38)
(0.03) Interest (0.03)
(0.04) Change in tax rate (0.07)
0.20 Operations (2) 1.04
$ (0.38) 2024 Diluted Earnings Per Share (1) $ 4.52

All values are in US Dollars.
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Diluted Earnings Per Share (EPS)
( in millions, except per share data) / (Unaudited)
(1) Basic and diluted EPS were calculated using the following (in millions):
Years Ended
December 31,
2023 2024 2023
$ 2,196 Net Earnings attributable to PMI 7,057 $ 7,813
5 Less: Distributed and undistributed earnings attributable to share-based payment awards (3) 23 22
$ 2,191 Net Earnings for basic and diluted EPS 7,034 $ 7,791
1,552 Weighted-average shares for basic EPS 1,554 1,552
2 Plus Contingently Issuable Performance Stock Units (3) 2 1
1,554 Weighted-average shares for diluted EPS 1,556 1,553
(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 December 31, Years Ended December 31,
2024 2023 % Change 2024 2023 % Change
$ (0.38) $ 1.41 -(100)% Reported Diluted EPS $ 4.52 $ 5.02 (10.0) %
0.06 Less: Currency (0.38)
$ (0.44) $ 1.41 -(100)% Reported Diluted EPS, excluding Currency $ 4.90 $ 5.02 (2.4) %
Quarters Ended December 31, Years Ended December 31,
2024 2023 % Change 2024 2023 % Change
$ (0.38) $ 1.41 -(100)% Reported Diluted EPS $ 4.52 $ 5.02 (10.0) %
0.01 — Restructuring charges 0.10 0.06
— — Termination of distribution arrangement in the Middle East — 0.04
— — Egypt sales tax charge 0.03 —
— — Loss on sale of Vectura Group 0.13 —
— — Impairment of goodwill and other intangibles 0.01 0.44
0.11 0.07 Amortization of intangibles 0.40 0.25
— 0.02 Charges related to the war in Ukraine — 0.03
0.05 — Megapolis localization tax impact 0.05 —
— — Swedish Match AB acquisition accounting related items — 0.01
0.14 (0.14) Income tax impact associated with Swedish Match AB financing 0.14 (0.11)
— — South Korea indirect tax charge — 0.11
— — Termination of agreement with Foundation for a Smoke-Free World — 0.07
1.49 — Impairment related to the RBH equity investment 1.49 —
0.13 — Fair value adjustment for equity security investments (0.27) (0.02)
— — Tax items (0.03) 0.11
$ 1.55 $ 1.36 14.0 % Adjusted Diluted EPS $ 6.57 $ 6.01 9.3 %
0.06 Less: Currency (0.38)
$ 1.49 $ 1.36 9.6 % Adjusted Diluted EPS, excluding Currency $ 6.95 $ 6.01 15.6 %
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>December 31, Net<br>Revenues Total Excluding Currency Excluding Currency & Acquisitions
2024 Combustible Tobacco 2023 % Change
2,132 $ 2,090 $ — $ 2,090 Europe $ 1,953 9.2 % 7.0 % 7.0 %
2,458 2,470 — 2,470 SSEA, CIS & MEA 2,333 5.4 % 5.9 % 5.9 %
627 628 — 628 EA, AU & PMI DF 585 7.1 % 7.3 % 7.3 %
602 640 — 640 Americas 617 (2.5) % 3.8 % 3.8 %
5,819 $ 5,828 $ — $ 5,828 Total Combustible Tobacco $ 5,489 6.0 % 6.2 % 6.2 %
2024 Smoke-free excl. W&H 2023 % Change
1,924 $ 1,884 $ — $ 1,884 Europe $ 1,813 6.1 % 3.9 % 3.9 %
410 415 — 415 SSEA, CIS & MEA 374 9.6 % 11.0 % 11.0 %
807 833 — 833 EA, AU & PMI DF 845 (4.5) % (1.4) % (1.4) %
659 661 — 661 Americas 458 43.9 % 44.2 % 44.2 %
3,800 $ 3,793 $ — $ 3,793 Total Smoke-free excl. W&H $ 3,489 8.9 % 8.7 % 8.7 %
2024 Wellness and Healthcare 2023 % Change
87 $ 85 $ — $ 85 Wellness and Healthcare $ 69 26.1 % 23.2 % 23.2 %
2024 Smoke-free incl. W&H 2023 % Change
3,887 $ 3,878 $ — $ 3,878 Smoke-free incl. W&H $ 3,558 9.2 % 9.0 % 9.0 %
2024 PMI 2023 % Change
4,056 $ 3,974 $ — $ 3,974 Europe $ 3,766 7.7 % 5.5 % 5.5 %
2,868 2,885 — 2,885 SSEA, CIS & MEA 2,707 5.9 % 6.6 % 6.6 %
1,434 1,461 — 1,461 EA, AU & PMI DF 1,430 0.3 % 2.2 % 2.2 %
1,261 1,301 — 1,301 Americas 1,075 17.3 % 21.0 % 21.0 %
87 85 — 85 Wellness and Healthcare 69 26.1 % 23.2 % 23.2 %
9,706 $ 9,706 $ — $ 9,706 Total PMI $ 9,047 7.3 % 7.3 % 7.3 %
Note: Sum of product categories or Regions might not foot to Total PMI due to roundings. "-" indicates amounts between -0.5 million and +0.5 million

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 Years Ended<br>December 31, NetRevenues Total Excluding Currency Excluding Currency & Acquisitions
2024 Combustible Tobacco 2023 % Change
8,599 $ 8,535 $ — $ 8,535 Europe 8,037 7.0 % 6.2 % 6.2 %
9,848 10,345 — 10,345 SSEA, CIS & MEA 9,321 5.7 % 11.0 % 11.0 %
2,516 2,585 — 2,585 EA, AU & PMI DF 2,676 (6.0) % (3.4) % (3.4) %
2,255 2,264 — 2,264 Americas 2,299 (2.0) % (1.5) % (1.5) %
23,218 $ 23,729 $ — $ 23,729 Total Combustible Tobacco 22,334 4.0 % 6.2 % 6.2 %
2024 Smoke-free excl. W&H 2023 % Change
6,758 $ 6,706 $ — $ 6,706 Europe 6,194 9.1 % 8.3 % 8.3 %
1,413 1,526 — 1,526 SSEA, CIS & MEA 1,308 8.0 % 16.7 % 16.7 %
3,877 4,149 — 4,149 EA, AU & PMI DF 3,525 10.0 % 17.7 % 17.7 %
2,279 2,279 — 2,279 Americas 1,508 51.2 % 51.2 % 51.2 %
14,327 $ 14,660 $ — $ 14,660 Total Smoke-free excl. W&H 12,534 14.3 % 17.0 % 17.0 %
2024 Wellness and Healthcare 2023 % Change
333 $330 $ — $ 330 Wellness and Healthcare 306 8.8 % 7.8 % 7.8 %
2024 Smoke-free incl. W&H 2023 % Change
14,660 $ 14,990 $ — $ 14,990 Smoke-free incl. W&H 12,840 14.2 % 16.7 % 16.7 %
2024 PMI 2023 % Change
15,357 $ 15,241 $ — $ 15,241 Europe 14,231 7.9 % 7.1 % 7.1 %
11,261 11,871 — 11,871 SSEA, CIS & MEA 10,629 5.9 % 11.7 % 11.7 %
6,393 6,734 — 6,734 EA, AU & PMI DF 6,201 3.1 % 8.6 % 8.6 %
4,534 4,543 — 4,543 Americas 3,807 19.1 % 19.3 % 19.3 %
333 330 — 330 Wellness and Healthcare 306 8.8 % 7.8 % 7.8 %
37,878 $ 38,719 $ — $ 38,719 Total PMI 35,174 7.7 % 10.1 % 10.1 %
(1) Includes a reduction in net revenues of 80 million related to the termination of a 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 Adjusted Net<br>Revenues Total Excluding Currency Excluding Currency<br>& Acqui-<br>sitions
2024 2023 % Change
4,056 $ 4,056 $ 82 $ 3,974 $ — 3,974 Europe $ 3,766 — $ 3,766 7.7 % 5.5 % 5.5 %
2,868 2,868 (17) 2,885 — 2,885 SSEA, CIS & MEA 2,707 — 2,707 5.9 % 6.6 % 6.6 %
1,434 1,434 (27) 1,461 — 1,461 EA, AU & PMI DF 1,430 — 1,430 0.3 % 2.2 % 2.2 %
1,261 1,261 (40) 1,301 — 1,301 Americas 1,075 — 1,075 17.3 % 21.0 % 21.0 %
87 87 2 85 — 85 Wellness and Healthcare 69 — 69 26.1 % 23.2 % 23.2 %
9,706 $ 9,706 $ — $ 9,706 $ — 9,706 Total PMI $ 9,047 — $ 9,047 7.3 % 7.3 % 7.3 %
2024 2023 % Change
15,357 $ 15,357 $ 116 $ 15,241 $ — 15,241 Europe $ 14,231 — $ 14,231 7.9 % 7.1 % 7.1 %
11,261 11,261 (610) 11,871 — 11,871 SSEA, CIS & MEA 10,629 (80) 10,709 5.2 % 10.9 % 10.9 %
6,393 6,393 (341) 6,734 — 6,734 EA, AU & PMI DF 6,201 — 6,201 3.1 % 8.6 % 8.6 %
4,534 4,534 (9) 4,543 — 4,543 Americas 3,807 — 3,807 19.1 % 19.3 % 19.3 %
333 333 3 330 — 330 Wellness and Healthcare 306 — 306 8.8 % 7.8 % 7.8 %
37,878 $ 37,878 $ (841) $ 38,719 $ — 38,719 Total PMI $ 35,174 (80) $ 35,254 7.4 % 9.8 % 9.8 %
(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>December 31, Gross<br>Profit Special<br>Items (1) Adjusted<br>Gross<br>Profit Total Excluding Currency Excluding Currency & Acquisitions
2024 2023 % Change
3,657 $ 3,657 $ (19) $ 3,677 $ 14 $ 3,663 Combustible Tobacco $ 3,303 $ (2) $ 3,305 10.6 % 11.2 % 10.8 %
2024 2023 % Change
2,626 $ 2,631 $ (14) $ 2,644 $ — $ 2,644 Smoke-free incl. W&H $ 2,282 $ (16) $ 2,298 14.5 % 15.1 % 15.1 %
2024 2023 % Change
6,283 $ 6,288 $ (33) $ 6,321 $ 14 $ 6,307 Total PMI $ 5,585 $ (18) $ 5,603 12.2 % 12.8 % 12.6 %
(1) 2024 fourth-quarter reflects amortization of intangibles in Smoke-free incl. W&H, all amounts are related to cost of goods sold. 2023 fourth-quarter includes charges related to the war Ukraine (2 million in Combustible Tobacco) and mainly amortization of intangibles in cost of goods sold (16 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 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 Years Ended<br>December 31, Gross<br>Profit Special<br>Items (1) Adjusted<br>Gross<br>Profit Total Excluding Currency Excluding Currency & Acquisitions
2024 2023 % Change
14,830 $ 14,830 $ (394) $ 15,224 $ 47 $ 15,177 Combustible Tobacco $ 14,097 $ (111) $ 14,208 4.4 % 7.2 % 6.8 %
2024 2023 % Change
9,719 $ 9,770 $ (346) $ 10,116 $ — $ 10,116 Smoke-free incl. W&H $ 8,184 $ (59) $ 8,243 18.5 % 22.7 % 22.7 %
2024 2023 % Change
24,549 $ 24,600 $ (740) $ 25,340 $ 47 $ 25,293 Total PMI $ 22,281 $ (170) $ 22,451 9.6 % 12.9 % 12.7 %
(1) 2024 full-year reflects amortization of intangibles in Smoke-free incl. W&H, all amounts are related to cost of goods sold. 2023 full-year 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), charges related to the war in Ukraine (13 million in Combustible Tobacco) and mainly amortization of intangibles in cost of goods sold (59 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
1,802 $ — $ 1,802 $ — 1,802 Europe 1,618 11.4 % 11.4 % 11.4 %
806 8 798 13 785 SSEA, CIS & MEA 699 15.3 % 14.2 % 12.3 %
574 (41) 615 — 615 EA, AU & PMI DF 576 (0.3) % 6.8 % 6.8 %
129 129 — — — Americas 58 +100% -(100)% -(100)%
(52) (1) (51) — (51) Wellness and Healthcare (62) 16.1 % 17.7 % 17.7 %
3,259 $ 95 $ 3,164 $ 13 3,151 Total PMI 2,889 12.8 % 9.5 % 9.1 %
2024 2023
6,938 $ 6 $ 6,932 $ — 6,932 Europe 6,169 12.5 % 12.4 % 12.4 %
3,429 (592) 4,021 46 3,975 SSEA, CIS & MEA 3,136 9.3 % 28.2 % 26.8 %
2,878 (298) 3,176 — 3,176 EA, AU & PMI DF 2,539 13.4 % 25.1 % 25.1 %
548 205 343 — 343 Americas 582 (5.8) % (41.1) % (41.1) %
(391) (3) (388) — (388) Wellness and Healthcare (870) 55.1 % 55.4 % 55.4 %
13,402 $ (682) $ 14,084 $ 46 14,038 Total PMI 11,556 16.0 % 21.9 % 21.5 %

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>December 31, 2023 % Change
1,802 $ 1,843 $ — $ 1,843 $ — $ 1,843 Europe $ 1,618 $ (72) 1,690 9.1 % 9.1 % 9.1 %
806 810 8 802 13 789 SSEA, CIS & MEA 699 (5) 704 15.1 % 13.9 % 12.1 %
574 575 (41) 616 — 616 EA, AU & PMI DF 576 — 576 (0.2) % 6.9 % 6.9 %
129 339 129 210 — 210 Americas 58 (71) 129 +100% 62.8 % 62.8 %
(52) (48) (1) (47) — (47) Wellness and Healthcare (62) (15) (47) (2.1) % — % — %
3,259 $ 3,519 $ 95 $ 3,424 $ 13 $ 3,411 Total PMI $ 2,889 $ (163) 3,052 15.3 % 12.2 % 11.8 %
2024 Years Ended<br>December 31, 2023 % Change
6,938 $ 7,099 $ 6 $ 7,093 $ — $ 7,093 Europe $ 6,169 $ (323) 6,492 9.3 % 9.3 % 9.3 %
3,429 3,492 (592) 4,084 46 4,038 SSEA, CIS & MEA 3,136 (173) 3,309 5.5 % 23.4 % 22.0 %
2,878 2,881 (298) 3,179 — 3,179 EA, AU & PMI DF 2,539 (250) 2,789 3.3 % 14.0 % 14.0 %
548 1,336 205 1,131 — 1,131 Americas 582 (297) 879 52.0 % 28.7 % 28.7 %
(391) (120) (3) (117) — (117) Wellness and Healthcare (870) (738) (132) 9.1 % 11.4 % 11.4 %
13,402 $ 14,688 $ (682) $ 15,370 $ 46 $ 15,324 Total PMI $ 11,556 $ (1,781) 13,337 10.1 % 15.2 % 14.9 %
(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 $ 2,889 12.8 % 9.1 % $ 370 $ 95 $ 13 $ 482 $ 148 $ (368)
Restructuring charges — — % — % (12) — — — — (12)
Loss on sale of Vectura Group — — % — % (1) — — — — (1)
Amortization of intangibles (129) (91.5) % (91.5) % (118) — — — — (118)
Charges related to the war in Ukraine (34) 100.0 % 100.0 % 34 — — — — 34
Adjusted Operating Income $ 3,052 15.3 % 11.8 % $ 467 $ 95 $ 13 $ 482 $ 148 $ (271)
Europe
Reported Operating Income $ 1,618 11.4 % 11.4 % $ 184 $ — $ — $ 202 $ (23) $ 5
Amortization of intangibles (38) (5.5) % (5.5) % (2) — — — — (2)
Charges related to the war in Ukraine (34) 100.0 % 100.0 % 34 — — — — 34
Adjusted Operating Income $ 1,690 9.1 % 9.1 % $ 153 $ — $ — $ 202 $ (23) $ (28)
SSEA, CIS & MEA
Reported Operating Income $ 699 15.3 % 12.3 % $ 107 $ 8 $ 13 $ 141 $ 28 $ (83)
Amortization of intangibles (5) 16.1 % 16.1 % 1 — — — — 1
Adjusted Operating Income $ 704 15.1 % 12.1 % $ 106 $ 8 $ 13 $ 141 $ 28 $ (84)

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 $ 576 (0.3) % 6.8 % $ (2) $ (41) $ — $ 36 $ 6 $ (3)
Amortization of intangibles — — % — % (1) — — — — (1)
Adjusted Operating Income $ 576 (0.2) % 6.9 % $ (1) $ (41) $ — $ 36 $ 6 $ (3)
Americas
Reported Operating Income $ 58 +100% -(100)% $ 71 $ 129 $ — $ 87 $ 137 $ (282)
Restructuring charges — — % — % (12) — — — — (12)
Amortization of intangibles (71) -(100)% -(100)% (127) — — — — (127)
Adjusted Operating Income $ 129 +100% 62.8 % $ 210 $ 129 $ — $ 87 $ 137 $ (142)
Wellness & Healthcare
Reported Operating Income / (Loss) $ (62) 16.1 % 17.7 % $ 10 $ (1) $ — $ 16 $ — $ (5)
Loss on sale of Vectura Group — — % — % (1) — — — — (1)
Amortization of intangibles (15) 73.5 % 73.5 % 11 — — — — 11
Adjusted Operating Income / (Loss) $ (47) (2.1) % — % $ (1) $ (1) $ — $ 16 $ — $ (14)
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 $ 11,556 16.0 % 21.5 % $ 1,846 $ (682) $ 46 $ 2,203 $ 764 $ (485)
Restructuring charges (109) (65.1) % (65.1) % (71) — — — — (71)
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
Egypt sales tax charge — — % — % (45) — — — — (45)
Loss on sale of Vectura Group — — % — % (199) — — — — (199)
Amortization of intangibles (497) (68.0) % (68.0) % (338) — — — — (338)
Charges related to the war in Ukraine (53) 100.0 % 100.0 % 53 — — — — 53
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
Termination of agreement with Foundation for a Smoke-Free World (140) 100.0 % 100.0 % 140 — — — — 140
Adjusted Operating Income $ 13,337 10.1 % 14.9 % $ 1,351 $ (682) $ 46 $ 2,203 $ 764 $ (980)
Europe
Reported Operating Income $ 6,169 12.5 % 12.4 % $ 769 $ 6 $ — $ 798 $ 90 $ (125)
Restructuring charges (47) 100.0 % 100.0 % 47 — — — — 47
Amortization of intangibles (163) 1.7 % 1.7 % 3 — — — — 3
Charges related to the war in Ukraine (53) 100.0 % 100.0 % 53 — — — — 53
Termination of agreement with Foundation for a Smoke-Free World (60) 100.0 % 100.0 % 60 — — — — 60
Adjusted Operating Income $ 6,492 9.3 % 9.3 % $ 607 $ 6 $ — $ 798 $ 90 $ (288)
SSEA, CIS & MEA
Reported Operating Income $ 3,136 9.3 % 26.8 % $ 293 $ (592) $ 46 $ 821 $ 145 $ (127)
Restructuring charges (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 (20) 10.4 % 10.4 % 2 — — — — 2
Egypt sales tax charge — — % — % (45) — — — — (45)
Termination of agreement with Foundation for a Smoke-Free World (41) 100.0 % 100.0 % 41 — — — — 41
Adjusted Operating Income $ 3,309 5.5 % 22.0 % $ 183 $ (592) $ 46 $ 821 $ 145 $ (236)

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 $ 2,539 13.4 % 25.1 % $ 339 $ (298) $ — $ 325 $ 59 $ 253
Restructuring charges (19) 100.0 % 100.0 % 19 — — — — 19
Amortization of intangibles (3) 5.1 % 5.1 % — — — — — —
South Korea Indirect Tax Charge (204) 100.0 % 100.0 % 204 — — — — 204
Termination of agreement with Foundation for a Smoke-Free World (24) 100.0 % 100.0 % 24 — — — — 24
Adjusted Operating Income $ 2,789 3.3 % 14.0 % $ 92 $ (298) $ — $ 325 $ 59 $ 5
Americas
Reported Operating Income $ 582 (5.8) % (41.1) % $ (34) $ 205 $ — $ 233 $ 470 $ (942)
Restructuring charges (11) -(100)% -(100)% (169) — — — — (169)
Amortization of intangibles (253) -(100)% -(100)% (355) — — — — (355)
Swedish Match AB acquisition accounting related items (18) 100.0 % 100.0 % 18 — — — — 18
Termination of agreement with Foundation for a Smoke-Free World (15) 100.0 % 100.0 % 15 — — — — 15
Adjusted Operating Income $ 879 52.0 % 28.7 % $ 457 $ 205 $ — $ 233 $ 470 $ (451)
Wellness & Healthcare
Reported Operating Income / (Loss) $ (870) 55.1 % 55.4 % $ 479 $ (3) $ — $ 26 $ — $ 456
Impairment of goodwill and other intangibles (680) 96.1 % 96.1 % 654 — — — — 654
Loss on sale of Vectura Group — — % — % (199) — — — — (199)
Amortization of intangibles (58) 20.5 % 20.5 % 12 — — — — 12
Adjusted Operating Income / (Loss) $ (132) 9.1 % 11.4 % $ 12 $ (3) $ — $ 26 $ — $ (10)
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>December 31, 2023 % Points Change
1,843 45.4 % $ 1,843 $ 3,974 46.4 % $ 1,843 $ 3,974 46.4 % Europe $ 1,690 $ 3,766 44.9 % 0.5 1.5 1.5
810 28.2 % 802 2,885 27.8 % 789 2,885 27.3 % SSEA, CIS & MEA 704 2,707 26.0 % 2.2 1.8 1.3
575 40.1 % 616 1,461 42.2 % 616 1,461 42.2 % EA, AU & PMI DF 576 1,430 40.3 % (0.2) 1.9 1.9
339 26.9 % 210 1,301 16.1 % 210 1,301 16.1 % Americas 129 1,075 12.0 % 14.9 4.1 4.1
(48) (55.2) % (47) 85 (55.3) % (47) 85 (55.3) % Wellness and Healthcare (47) 69 (68.1) % 12.9 12.8 12.8
3,519 36.3 % $ 3,424 $ 9,706 35.3 % $ 3,411 $ 9,706 35.1 % Total PMI $ 3,052 $ 9,047 33.7 % 2.6 1.6 1.4
2024 Years Ended<br>December 31, 2023 % Points Change
7,099 46.2 % $ 7,093 $ 15,241 46.5 % $ 7,093 $ 15,241 46.5 % Europe $ 6,492 $ 14,231 45.6 % 0.6 0.9 0.9
3,492 31.0 % 4,084 11,871 34.4 % 4,038 11,871 34.0 % SSEA, CIS & MEA 3,309 10,709 30.9 % 0.1 3.5 3.1
2,881 45.1 % 3,179 6,734 47.2 % 3,179 6,734 47.2 % EA, AU & PMI DF 2,789 6,201 45.0 % 0.1 2.2 2.2
1,336 29.5 % 1,131 4,543 24.9 % 1,131 4,543 24.9 % Americas 879 3,807 23.1 % 6.4 1.8 1.8
(120) (36.0) % (117) 330 (35.5) % (117) 330 (35.5) % Wellness and Healthcare (132) 306 (43.1) % 7.1 7.6 7.6
14,688 38.8 % $ 15,370 $ 38,719 39.7 % $ 15,324 $ 38,719 39.6 % Total PMI $ 13,337 $ 35,254 37.8 % 1.0 1.9 1.8
(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)
Years Ended December 31,
2023 Change<br>Fav./(Unfav.) 2024 2023 Change<br>Fav./(Unfav.)
$ 9,047 7.3 % Net Revenues $ 37,878 $ 35,174 7.7 %
3,462 1.1 % Cost of sales 13,329 12,893 (3.4) %
5,585 12.5 % Gross profit 24,549 22,281 10.2 %
2,696 (12.2) % Marketing, administration and research costs 11,147 10,060 (10.8) %
— — Impairment of goodwill — 665 100.0 %
2,889 12.8 % Operating Income 13,402 11,556 16.0 %
273 (19.4) % Interest expense, net 1,143 1,061 (7.7) %
9 (77.8) % Pension and other employee benefit costs 60 45 (33.3) %
2,607 11.9 % Earnings before income taxes 12,199 10,450 16.7 %
320 -(100)% Provision for income taxes 3,017 2,339 (29.0) %
— — % Impairment related to the RBH equity investment 2,316 — — %
(26) -(100)% Equity investments and securities (income)/loss, net (637) (157) +100%
2,313 -(100)% Net Earnings 7,503 8,268 (9.3) %
117 (20.5) % Net Earnings attributable to noncontrolling interests 446 455 (2.0) %
$ 2,196 -(100)% Net Earnings attributable to PMI $ 7,057 $ 7,813 (9.7) %
Per share data: (1)
$ 1.41 -(100)% Basic Earnings Per Share $ 4.53 $ 5.02 (9.8) %
$ 1.41 -(100)% Diluted Earnings Per Share $ 4.52 $ 5.02 (10.0) %
(1) Net Earnings and weighted-average shares used in the basic and diluted Earnings Per Share computations for the quarters and full-year ended December 31, 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 $ 4,216 $ 3,060
All other current assets 15,954 16,695
Property, plant and equipment, net 7,310 7,516
Goodwill 16,600 16,779
Other intangible assets, net 11,327 9,864
Equity investments 2,654 4,929
Other assets 3,723 6,461
Total assets $ 61,784 $ 65,304
Liabilities and Stockholders' (Deficit) Equity
Short-term borrowings $ 137 $ 1,968
Current portion of long-term debt 3,392 4,698
All other current liabilities 19,386 19,717
Long-term debt 42,166 41,243
Deferred income taxes 2,517 2,335
Other long-term liabilities 4,056 4,789
Total liabilities 71,654 74,750
Total PMI stockholders' deficit (11,750) (11,225)
Noncontrolling interests 1,880 1,779
Total stockholders' (deficit) equity (9,870) (9,446)
Total liabilities and stockholders' (deficit) equity $ 61,784 $ 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
Net Earnings $ 8,268
Equity investments and securities (income)/loss, net (637) (157)
Provision for income taxes 3,017 2,339
Interest expense, net 1,143 1,061
Impairment related to the RBH equity investment 2,316 —
Depreciation, amortization and impairment of goodwill and other intangibles 1,814 2,078
Restructuring charges and Others (1) 424 604
Adjusted EBITDA 15,580 $ 14,193
December 31, December 31,
2024 2023
Short-term borrowings $ 1,968
Current portion of long-term debt 3,392 4,698
Long-term debt 42,166 41,243
Total Debt $ 47,909
Cash and cash equivalents 4,216 3,060
Net Debt $ 44,849
Ratios:
Total Debt to Adjusted EBITDA 2.93 3.38
Net Debt to Adjusted EBITDA 2.66 3.16
(1) For the year ended December 2024 "Others" includes loss on sale of Vectura Group (199 million) and Egypt sales tax charge (45 million). For the year ended December 31, 2023 "Others" includes South Korea indirect tax charge (204 million), Termination of agreement with Foundation for a Smoke-Free World (140 million), a reduction in revenues related to the termination of distribution arrangement in the Middle East (80 million), charges related to the war in Ukraine (53 million) and Swedish Match AB acquisition accounting related items (18 million).

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)
Years Ended December 31,
2023 % Change 2024 2023 % Change
$ 3,302 21.2 % Net cash provided by operating activities (1) $ 12,217 $ 9,204 32.7 %
Less: Currency (434)
$ 3,302 1.3 % Net cash provided by operating activities,<br>excluding currency $ 12,651 $ 9,204 37.5 %
(1) Operating cash flow

All values are in US Dollars.

27

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