pm-20201020

Exhibit 99.1

PRESS RELEASE

Investor Relations:

Media:

New York: +1 (917) 663 2233

Lausanne: +41 (0)58 242 4500

Lausanne: +41 (0)58 242 4666

Email: [email protected]

PHILIP MORRIS INTERNATIONAL INC. REPORTS 2020 THIRD-QUARTER

REPORTED DILUTED EPS OF $1.48 VERSUS $1.22 IN 2019,

REFLECTING ADJUSTED DILUTED EPS GROWTH OF 5.6% ON AN ORGANIC BASIS;

RAISES 2020 FULL-YEAR REPORTED DILUTED EPS FORECAST

TO A RANGE OF $5.03 TO $5.08, OR $5.05 TO $5.10 ON AN ADJUSTED BASIS,

REFLECTING ORGANIC GROWTH OF AROUND 5% TO 6%

NEW YORK, October 20, 2020 – Philip Morris International Inc. (NYSE: PM) today announces its 2020 third-quarter results. Comparisons presented in this press release on a "like-for-like" basis reflect pro forma 2019 results, which have been adjusted for the deconsolidation of PMI's Canadian subsidiary, Rothmans, Benson & Hedges, Inc. (RBH), effective March 22, 2019 (the date of deconsolidation). In addition, PMI's total market share has been restated for previous periods to reflect the deconsolidation. Growth rates presented in this press release on an organic basis for consolidated financial results reflect currency-neutral underlying results and "like-for-like" comparisons, where applicable. Adjustments, other calculations and reconciliations to the most directly comparable U.S. GAAP measures are included in the schedules to this press release.

2020 THIRD-QUARTER & YEAR-TO-DATE HIGHLIGHTS

2020 Third-Quarter

•Reported diluted EPS of $1.48, up by 21.3%; up by 28.7%, excluding currency

•Adjusted diluted EPS of $1.42, down by 0.7%; up by 5.6% on an organic basis

•Cigarette and heated tobacco unit shipment volume down by 7.6% (reflecting cigarette shipment volume down by 9.8%, and heated tobacco unit shipment volume up by 18.7% to 19.0 billion units)

•Market share for heated tobacco units in IQOS markets, excluding the U.S., up by 1.5 points to 6.0%

•Net revenues down by 2.6%; down by 1.5% on an organic basis

•Operating income up by 16.3%; up by 20.9%, excluding currency

•Adjusted operating income up by 5.8% on an organic basis

•Adjusted operating income margin up by 3.1 points to 44.8% on an organic basis

•Total IQOS users at quarter-end estimated at approximately 16.4 million, of which approximately 11.7 million have stopped smoking and switched to IQOS

•Increased the regular quarterly dividend per share by 2.6% to an annualized rate of $4.80

2020 Nine Months Year-to-Date

•Reported diluted EPS of $3.90, up by 9.2%; up by 17.1%, excluding currency

•Adjusted diluted EPS of $3.92, down by 1.3%; up by 7.4% on an organic basis

•Cigarette and heated tobacco unit shipment volume down by 8.0% (reflecting cigarette shipment volume down by 10.9%, and heated tobacco unit shipment volume up by 27.9% to 54.4 billion units); down by 7.8% on a like-for-like basis

•Market share for heated tobacco units in IQOS markets, excluding the U.S., up by 1.7 points to 6.0%

•Net revenues down by 3.8%; down by 0.9% on an organic basis

•Operating income up by 9.2%; up by 14.5%, excluding currency

•Adjusted operating income up by 5.6% on an organic basis

•Adjusted operating income margin up by 2.6 points to 42.6% on an organic basis

"We delivered stronger-than-anticipated results in the third quarter, despite the ongoing challenges of the pandemic, with adjusted diluted EPS growth of 5.6% on an organic basis," said André Calantzopoulos, Chief Executive Officer.

"The sustained momentum of IQOS was excellent, with an estimated 16.4 million total users at the end of September and smoke-free products accounting for nearly one-fourth of our total net revenues in the quarter. Furthermore, our combustible tobacco business recorded an improved sequential performance, supported by better underlying total industry volumes across both developed and emerging markets."

"Despite continued headwinds for our duty-free business and in Indonesia, we are raising our full-year 2020 guidance and now anticipate adjusted diluted EPS growth of around 5% to 6% on an organic basis, compared to a range of approximately 3.5% to 5.0% previously."

COVID-19: Business Continuity Update

Since the onset of the COVID-19 pandemic, PMI has undertaken a number of business continuity measures to mitigate potential disruption to its operations and route-to-market in order to preserve the availability of products to its customers and adult consumers.

Currently:

•PMI has sufficient access to the inputs for its products and is not facing any significant business continuity issues with respect to key suppliers;

•The large majority of PMI's manufacturing facilities globally are currently operational, including all heated tobacco unit factories. Certain cigarette production facilities—accounting for less than 5% of PMI's total cigarette production capacity worldwide—are temporarily impacted by government-mandated shutdowns or production limitations;

•There are adequate inventories, based on existing sales trends, of PMI finished goods across all key markets for cigarettes and across all IQOS markets for heated tobacco units and tobacco heating devices;

•PMI does not anticipate out-of-stock situations in any major operating income markets and generally expects consumers to have adequate access to its products; and

•PMI has ample liquidity through cash on hand, the ongoing cash generation of its business, and its access to the commercial paper and debt markets.

- 2 -

2020 FULL-YEAR FORECAST


	Full-Year
	2020 Forecast					2019			Organic Growth

Reported Diluted EPS	$5.03	-	$5.08	$4.61
Tax items	(0.06)					(0.04)
Asset impairment and exit costs	0.04					0.23
Canadian tobacco litigation-related expense				0.09
Loss on deconsolidation of RBH				0.12
Russia excise and VAT audit charge				0.20
Fair value adjustment for equity security investments	0.04					(0.02)
Adjusted Diluted EPS	$5.05	-	$5.10	$5.19
Net earnings attributable to RBH				(0.06)	^(a)
Adjusted Diluted EPS	$5.05	-	$5.10	$5.13	^(b)
Currency	0.32
Adjusted Diluted EPS, excluding currency	$5.37	-	$5.42	$5.13	^(b)	5%	-	6%

^(a) Net reported diluted EPS attributable to RBH from January 1, 2019 through March 21, 2019.
^(b) Pro forma.

PMI raises its full-year 2020 reported diluted EPS forecast to a range of $5.03 to $5.08, at prevailing exchange rates, compared to the previously communicated forecast range of $4.92 to $4.99, provided on September 10th.

This revision primarily reflects:

•A favorable tax reporting item of $0.06 per share, recorded in the third quarter of 2020, related to U.S. tax regulations under the Tax Cuts and Jobs Act of 2017;

•Better-than-anticipated third-quarter total industry volume, notably in the EU Region and Indonesia, and the corresponding impact on PMI shipment volume; and

•A smaller expected fourth-quarter cigarette industry volume decline in Indonesia, and the corresponding impact on PMI shipment volume.

Excluding an unfavorable currency impact, at prevailing exchange rates, of approximately $0.32 per share (compared to approximately $0.31 per share assumed previously), the favorable tax item of $0.06 per share, asset impairment and exit costs of $0.04 per share and the fair value adjustment for equity security investments of $0.04 per share, this forecast represents a projected increase of around 5% to 6% versus pro forma adjusted diluted EPS of $5.13 in 2019, as detailed in the above table.

2020 Full-Year Forecast Assumptions

This forecast assumes:

•No recurrence of national lockdowns in PMI's key international markets during the remainder of 2020;

•Lack of near-term recovery in PMI's duty-free business given the uncertain outlook for global travel, with current dynamics persisting at least through year end;

•Full enforcement of minimum retail selling price requirements in Indonesia by the end of 2020, at the earliest;

•An estimated total international industry volume decline, excluding China and the U.S., of approximately 7% to 8%, compared to approximately 7% to 9% assumed previously;

- 3 -

•A total cigarette and heated tobacco unit shipment volume decline for PMI of approximately 8% to 9% on a like-for-like basis, compared to approximately 8% to 10% assumed previously;

•A full-year heated tobacco unit shipment volume that keeps PMI on-track to reach its 2021 target of 90 to 100 billion units;

•A net revenue decline in the low single digits on an organic basis. Excluding Indonesia and PMI Duty Free, this assumes net revenue growth in the low single digits on the same basis;

•An increase in adjusted operating income margin of around 200 basis points on an organic basis, compared to more than 150 basis points assumed previously;

•Operating cash flow of at least $9.0 billion, subject to year-end working capital requirements and currency movements;

•Fourth-quarter reported diluted EPS of around $1.16, including an unfavorable currency impact, at prevailing exchange rates, of approximately $0.04 per share, notably reflecting:

◦Broadly stable underlying consumption trends compared to the third quarter of 2020; and

◦The impact of certain costs that were initially planned for the third quarter of 2020 but are now expected in the fourth quarter.

•Capital expenditures of approximately $0.6 billion, compared to approximately $0.7 billion assumed previously;

•An effective tax rate, excluding discrete tax events, of 22% to 23%, compared to approximately 22% assumed previously; and

•No share repurchases.

This forecast excludes the impact of any future acquisitions, unanticipated or unquantifiable asset impairment and exit cost charges, future changes in currency exchange rates, further developments related to the U.S. Tax Cuts and Jobs Act, further developments pertaining to the judgment in the two Québec Class Action lawsuits and the Companies’ Creditors Arrangement Act (CCAA) protection granted to RBH, any unusual events, and any COVID-19-related developments different from the assumptions set forth in the company's forecast.

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

Conference Call

A conference call, hosted by Emmanuel Babeau, Chief Financial Officer, will be webcast at 9:00 a.m., Eastern Time, on October 20, 2020. Access is at www.pmi.com/2020Q3earnings. The audio webcast may also be accessed on iOS or Android devices by downloading PMI’s free Investor Relations Mobile Application at www.pmi.com/irapp.

- 4 -

CONSOLIDATED SHIPMENT VOLUME & MARKET SHARE


PMI Shipment Volume by Region	Third-Quarter						Nine Months Year-to-Date
(million units)	2020	2019	Change		2020	2019	Change
Cigarettes
European Union	45,179	47,238	(4.4)	%	126,142	133,093	(5.2)	%
Eastern Europe	25,661	27,379	(6.3)	%	70,737	74,779	(5.4)	%
Middle East & Africa	30,903	36,994	(16.5)	%	88,087	101,957	(13.6)	%
South & Southeast Asia	37,238	42,362	(12.1)	%	108,179	130,230	(16.9)	%
East Asia & Australia	10,784	12,692	(15.0)	%	35,154	38,650	(9.0)	%
Latin America & Canada	15,699	16,854	(6.9)	%	45,542	52,906	(13.9)	%
Total PMI	165,464	183,519	(9.8)	%	473,841	531,615	(10.9)	%

Heated Tobacco Units
European Union	5,181	3,474	49.1	%	14,069	8,810	59.7	%
Eastern Europe	4,882	3,858	26.5	%	14,374	8,213	75.0	%
Middle East & Africa	179	588	(69.6)	%	834	2,061	(59.5)	%
South & Southeast Asia	10	—	—	%	10	—	—	%
East Asia & Australia	8,601	7,976	7.8	%	24,799	23,253	6.6	%
Latin America & Canada ⁽¹⁾	114	89	28.1	%	316	202	56.4	%
Total PMI	18,967	15,985	18.7	%	54,402	42,539	27.9	%

Cigarettes and Heated Tobacco Units
European Union	50,360	50,712	(0.7)	%	140,211	141,903	(1.2)	%
Eastern Europe	30,543	31,237	(2.2)	%	85,111	82,992	2.6	%
Middle East & Africa	31,082	37,582	(17.3)	%	88,921	104,018	(14.5)	%
South & Southeast Asia	37,248	42,362	(12.1)	%	108,189	130,230	(16.9)	%
East Asia & Australia	19,385	20,668	(6.2)	%	59,953	61,903	(3.2)	%
Latin America & Canada	15,813	16,943	(6.7)	%	45,858	53,108	(13.7)	%
Total PMI	184,431	199,504	(7.6)	%	528,243	574,154	(8.0)	%
(1) Includes shipments to Altria Group, Inc., commencing in the third quarter of 2019, for sale in the United States under license.

Third-Quarter

PMI's total shipment volume decreased by 7.6%, due to:

•the EU, reflecting lower cigarette shipment volume, notably in France, Italy and Poland, partly offset by Austria, partially offset by higher heated tobacco unit shipment volume across the Region, notably in Italy and Poland;

•Eastern Europe, reflecting lower cigarette shipment volume, particularly in Russia and Ukraine, partly offset by higher heated tobacco unit shipment volume across the Region, primarily in Russia and Ukraine;

•Middle East & Africa, reflecting lower cigarette shipment volume, mainly in North Africa, PMI Duty Free and Turkey, as well as lower heated tobacco unit shipment volume due to PMI Duty Free;

•South & Southeast Asia, reflecting lower cigarette shipment volume, primarily in Indonesia and the Philippines, partly offset by Pakistan and Thailand;

•East Asia & Australia, reflecting lower cigarette shipment volume, mainly in Japan, partly offset by higher heated tobacco unit shipment volume, primarily in Japan; and

•Latin America & Canada, reflecting lower cigarette shipment volume, primarily in Argentina, partly offset by Brazil.

- 5 -

Impact of Inventory Movements

Excluding the net unfavorable impact of estimated distributor inventory movements of approximately 3.4 billion units, PMI’s total in-market sales declined by 5.8%, due to a 8.8% decline in cigarettes, partly offset by a 28.5% increase in heated tobacco units.

The net unfavorable impact of estimated distributor inventory movements of approximately 3.4 billion units reflected a net unfavorable impact of 1.8 billion cigarettes, mainly due to Japan and PMI Duty Free, partly offset by Saudi Arabia, and a net unfavorable impact of 1.6 billion heated tobacco units, primarily due to Japan and Russia.

Nine Months Year-to-Date

PMI's total shipment volume decreased by 8.0% (or by 7.8% on a like-for-like basis), due to:

•the EU, reflecting lower cigarette shipment volume, notably in Italy, Poland and Spain, partly offset by higher heated tobacco unit shipment volume across the Region, particularly in Italy and Poland;

•Middle East & Africa, reflecting lower cigarette shipment volume, primarily in PMI Duty Free and Turkey, as well as lower heated tobacco unit shipment volume due to PMI Duty Free;

•South & Southeast Asia, reflecting lower cigarette shipment volume, primarily in Indonesia, Pakistan and the Philippines;

•East Asia & Australia, reflecting lower cigarette shipment volume, predominantly in Japan, partly offset by higher heated tobacco unit shipment volume driven by Japan; and

•Latin America & Canada, reflecting lower cigarette shipment volume, primarily in Argentina, Canada (due to the impact of the deconsolidation of RBH), and Mexico, partially offset by Brazil. On a like-for-like basis, PMI's total shipment volume in the Region decreased by 12.0%;

partly offset by

•Eastern Europe, reflecting higher heated tobacco unit shipment volume across the Region, notably in Russia and Ukraine, partly offset by lower cigarette shipment volume, mainly in Russia and Ukraine.

Impact of Inventory Movements

The net impact of estimated distributor inventory movements was immaterial. On a like-for-like basis, PMI’s total in-market sales declined by 7.7%.

- 6 -

PMI Shipment Volume by Brand


PMI Shipment Volume by Brand	Third-Quarter						Nine Months Year-to-Date
(million units)	2020	2019	Change		2020	2019	Change
Cigarettes
Marlboro	61,581	68,859	(10.6)	%	175,638	196,883	(10.8)	%
L&M	24,189	24,428	(1.0)	%	69,215	69,765	(0.8)	%
Chesterfield	13,768	15,001	(8.2)	%	39,274	43,502	(9.7)	%
Philip Morris	12,254	13,275	(7.7)	%	34,823	36,949	(5.8)	%
Parliament	9,540	10,407	(8.3)	%	25,575	29,085	(12.1)	%
Sampoerna A	7,999	8,756	(8.6)	%	23,801	26,012	(8.5)	%
Bond Street	6,441	7,687	(16.2)	%	18,481	21,099	(12.4)	%
Dji Sam Soe	6,372	8,599	(25.9)	%	18,344	23,089	(20.6)	%
Lark	3,846	4,955	(22.4)	%	12,059	15,575	(22.6)	%
Fortune	2,263	3,215	(29.6)	%	7,008	9,702	(27.8)	%
Others	17,211	18,337	(6.1)	%	49,623	59,954	(17.2)	%
Total Cigarettes	165,464	183,519	(9.8)	%	473,841	531,615	(10.9)	%
Heated Tobacco Units ⁽¹⁾	18,967	15,985	18.7	%	54,402	42,539	27.9	%
Total PMI	184,431	199,504	(7.6)	%	528,243	574,154	(8.0)	%
(1) Includes shipments to Altria Group, Inc., commencing in the third quarter of 2019, for sale in the United States under license.
Note: Sampoerna A includes Sampoerna; Philip Morris includes Philip Morris/Dubliss; and Lark includes Lark Harmony.

Third-Quarter

PMI's cigarette shipment volume of the following brands decreased:

•Marlboro, mainly due to Indonesia, Japan and PMI Duty Free, partly offset by the Philippines and Russia;

•L&M, notably due to Egypt, Germany, PMI Duty Free and Poland, partly offset by Mexico, Thailand and Turkey;

•Chesterfield, mainly due to Poland, Russia and Turkey, partly offset by Brazil and Saudi Arabia;

•Philip Morris, primarily due to Argentina and Italy, partly offset by the Philippines and Russia;

•Parliament, mainly due to Japan, Korea, Kuwait, PMI Duty Free and Russia;

•Sampoerna A in Indonesia, mainly due to premium A Mild;

•Bond Street, notably due to Russia;

•Dji Sam Soe in Indonesia, mainly due to Dji Sam Soe Magnum Mild;

•Lark, primarily due to Japan;

•Fortune in the Philippines; and

•"Others," notably due to: mid-price Sampoerna U in Indonesia, partly offset by mid-price Sampoerna Hijau in Indonesia and low-price Morven in Pakistan.

The increase in PMI's heated tobacco unit shipment volume was mainly driven by the EU (notably Italy and Poland), Eastern Europe (notably Russia and Ukraine) and Japan, partly offset by PMI Duty Free.

International Share of Market

PMI's total international market share (excluding China and the U.S.), defined as PMI's cigarette and heated tobacco unit sales volume as a percentage of total industry cigarette and heated tobacco unit sales volume, decreased by 0.7 points to 28.2%, reflecting:

- 7 -

•Total international market share for cigarettes of 25.1%, down by 1.5 points; and

•Total international market share for heated tobacco units of 3.1%, up by 0.8 points.

PMI's total international cigarette sales volume as a percentage of total industry cigarette sales volume was down by 1.3 points to 26.1%, mainly reflecting: out-switching to heated tobacco units, as well as lower cigarette market share and/or an unfavorable geographic mix impact, notably in Argentina, Indonesia, PMI Duty Free and Ukraine, partly offset by Brazil and Pakistan.

Nine Months Year-to-Date

PMI's cigarette shipment volume of the following brands decreased:

•Marlboro, mainly due to Indonesia, Japan, Mexico, the Philippines, PMI Duty Free and Turkey, partly offset by Russia;

•L&M, notably due to PMI Duty Free and Poland, partly offset by Mexico and Turkey;

•Chesterfield, mainly due to Poland, Russia and Turkey, partly offset by Brazil and Saudi Arabia;

•Philip Morris, primarily due to Argentina and Italy, partly offset by Japan, the Philippines and Russia;

•Parliament, mainly due to PMI Duty Free, Russia and Turkey;

•Sampoerna A in Indonesia, mainly due to premium A Mild;

•Bond Street, largely due to Russia and Ukraine;

•Dji Sam Soe in Indonesia, mainly due to Dji Sam Soe Magnum Mild;

•Lark, primarily due to Japan and Turkey;

•Fortune in the Philippines; and

•"Others," notably due to: the impact of the deconsolidation of RBH in Canada; mid-price Hope in the Philippines, Muratti in Turkey and Sampoerna U in Indonesia; and low-price Baronet (morphed to L&M) in Mexico, Jackpot in the Philippines and Morven in Pakistan; partly offset by mid-price Sampoerna Hijau in Indonesia.

International Share of Market

PMI's total international market share (excluding China and the U.S.), decreased by 0.5 points to 27.9%, reflecting:

•Total international market share for cigarettes of 25.0%, down by 1.2 points; and

•Total international market share for heated tobacco units of 2.9%, up by 0.8 points.

PMI's total international cigarette sales volume as a percentage of total industry cigarette sales volume was down by 1.1 points to 25.9%, mainly reflecting: out-switching to heated tobacco units, as well as lower cigarette market share and/or an unfavorable geographic mix impact, notably in Indonesia, Mexico, Pakistan, the Philippines, PMI Duty Free and Turkey, partly offset by Germany and Russia.

- 8 -

CONSOLIDATED FINANCIAL SUMMARY

Third-Quarter


Financial Summary - Quarters Ended September 30,						Change Fav./(Unfav.)						Variance Fav./(Unfav.)
			2020		2019			Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 7,446		$ 7,642			(2.6)	%	(1.5)	%		(196)	(78)	171	(275)	(14)
Cost of Sales	(2,416)		(2,605)			7.3	%	6.8	%		189	13	—	50	126
Marketing, Administration and Research Costs (1)	(1,769)		(2,234)			20.8	%	23.5	%		465	(61)	—	—	526
Amortization of Intangibles	(18)		(15)			(20.0)	%	(13.3)	%		(3)	(1)	—	—	(2)
Operating Income	$ 3,243		$ 2,788			16.3	%	20.9	%		455	(127)	171	(225)	636
Asset Impairment & Exit Costs (2)	—		(22)			+100%		+100%			22	—	—	—	22

Russia Excise and VAT Audit Charge (2)	—		(374)			+100%		+100%			374	—	—	—	374
Adjusted Operating Income	$ 3,243		$ 3,184			1.9	%	5.8	%		59	(127)	171	(225)	240

Adjusted Operating Income Margin	43.6	%	41.7	%		1.9pp		3.1	pp

⁽¹⁾ Favorable Cost/Other variance includes the 2019 asset impairment and exit costs and Russia excise and VAT audit charge.
⁽²⁾ Included in Marketing, Administration and Research Costs above.
Note: Net Revenues include revenues from shipments of Platform 1 devices, heated tobacco units and accessories to Altria Group, Inc., commencing in the third quarter of 2019, for sale under license in the United States.

Net revenues, excluding unfavorable currency, decreased by 1.5%, mainly reflecting: unfavorable volume/mix, primarily due to lower cigarette volume (mainly in Indonesia, Japan and PMI Duty Free), partially offset by higher heated tobacco unit volume (notably in the EU, Japan, Russia and Ukraine, partly offset by PMI Duty Free); partially offset by a favorable pricing variance (notably driven by Germany, Japan, Russia and Saudi Arabia, partly offset by Indonesia and Turkey).

Operating income, excluding unfavorable currency, increased by 20.9%, notably reflecting a favorable comparison, shown in "Cost/Other," due to charges recorded in the in the third quarter of 2019 of $396 million, related to: asset impairment and exit costs associated with a plant closure in Colombia and the Russia excise and VAT audit.

Excluding these charges and unfavorable currency, adjusted operating income increased by 5.8%, primarily reflecting: a favorable pricing variance; lower manufacturing costs (driven by productivity gains related to reduced-risk and combustible products); and lower marketing, administration and research costs (partly driven by cost efficiencies); partially offset by unfavorable volume/mix, due to the same factors as for net revenues noted above.

Adjusted operating income margin, excluding currency, increased by 3.1 points to 44.8%, as detailed in Schedule 8.

- 9 -

Nine Months Year-to-Date


Financial Summary - Nine Months Ended September 30,						Change Fav./(Unfav.)						Variance Fav./(Unfav.)
			2020		2019			Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other(1)
(in millions)
Net Revenues	$ 21,250		$ 22,092			(3.8)	%	(1.7)	%		(842)	(469)	666	(798)	(241)
Cost of Sales	(6,997)		(7,735)			9.5	%	7.3	%		738	173	—	318	247
Marketing, Administration and Research Costs (2)	(5,435)		(6,282)			13.5	%	15.6	%		847	(131)	—	—	978
Amortization of Intangibles	(55)		(50)			(10.0)	%	(10.0)	%		(5)	—	—	—	(5)
Operating Income	$ 8,763		$ 8,025			9.2	%	14.5	%		738	(427)	666	(480)	979
Asset Impairment & Exit Costs (3)	(71)		(65)			(9.2)	%	(9.2)	%		(6)	—	—	—	(6)
Canadian Tobacco Litigation-Related Expense (3)	—		(194)			+100%		+100%			194	—	—	—	194
Loss on Deconsolidation of RBH (3)	—		(239)			+100%		+100%			239	—	—	—	239
Russia Excise and VAT Audit Charge (3)	—		(374)			+100%		+100%			374	—	—	—	374
Adjusted Operating Income	$ 8,834		$ 8,897			(0.7)	%	4.1	%		(63)	(427)	666	(480)	178

Adjusted Operating Income Margin	41.6	%	40.3	%		1.3pp		2.3pp
⁽¹⁾ Cost/Other variance includes the impact of the RBH deconsolidation.
⁽²⁾ Favorable Cost/Other variance includes the 2019 Canadian tobacco litigation-related expense, the 2019 loss on deconsolidation of RBH, the 2019 and 2020 asset impairment and exit costs, the 2019 Russia excise and VAT audit charge, and the impact of the RBH deconsolidation.
⁽³⁾ Included in Marketing, Administration and Research Costs above.
Note: Net Revenues include revenues from shipments of Platform 1 devices, heated tobacco units and accessories to Altria Group, Inc., commencing in the third quarter of 2019, for sale under license in the United States.

Net revenues, excluding unfavorable currency, decreased by 1.7%, reflecting: unfavorable volume/mix, primarily due to lower cigarette volume (mainly in Argentina, Indonesia, Italy, Japan, Mexico, the Philippines, PMI Duty Free, Poland, Russia, Spain, Turkey and Ukraine, partly offset by Germany), partially offset by higher heated tobacco unit volume (notably in the EU, Japan, Russia and Ukraine, partly offset by PMI Duty Free); and the unfavorable impact of $241 million, shown in "Cost/Other," mainly resulting from the deconsolidation of RBH; partly offset by a favorable pricing variance (notably driven by Australia, the GCC, Germany, Japan, Mexico, the Philippines, PMI Duty Free and Russia, partially offset by Indonesia and Turkey). On a like-for-like basis, net revenues, excluding unfavorable currency, decreased by 0.9%, as detailed in Schedule 9.

Operating income, excluding unfavorable currency, increased by 14.5%, notably reflecting a favorable comparison, shown in "Cost/Other," of charges recorded September year-to-date 2020 of $71 million, related to asset impairment and exit costs associated with organizational design optimization, to charges recorded in the same period in 2019 of $872 million, related to: asset impairment and exit costs associated with plant closures in Colombia and Pakistan, the loss on the deconsolidation of RBH, the Canadian tobacco litigation-related expense, and the Russia excise and VAT audit.

Excluding these charges and unfavorable currency, adjusted operating income increased by 4.1%, primarily reflecting: a favorable pricing variance; lower manufacturing costs (driven by productivity gains related to

- 10 -

reduced-risk and combustible products) and lower marketing, administration and research costs (partly driven by cost efficiencies); partially offset by unfavorable volume/mix, mainly due to lower cigarette volume (primarily in Argentina, Indonesia, Italy, Japan, Mexico, the Philippines, PMI Duty Free, Poland and Spain, partly offset by Germany), partly offset by higher heated tobacco unit volume (notably in the EU, Japan, Russia and Ukraine, partly offset by PMI Duty Free); and the unfavorable impact of the deconsolidation of RBH, included in "Cost/Other." On a like-for-like basis, adjusted operating income, excluding unfavorable currency, increased by 5.6%, as detailed in Schedule 9.

Adjusted operating income margin, excluding currency, increased by 2.3 points to 42.6%, as detailed in Schedule 8, or by 2.6 points to 42.6% on a like-for-like basis, as detailed in Schedule 9.

EUROPEAN UNION REGION

Third-Quarter


Financial Summary - Quarters Ended September 30,						Change Fav./(Unfav.)						Variance Fav./(Unfav.)
			2020		2019			Total		Excl. Curr.		Total	Cur- rency		Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 2,950		$ 2,645			11.5	%	10.0	%		305	40		82	183	—

Operating Income	$ 1,588		$ 1,255			26.5	%	24.7	%		333	23		82	158	70
Asset Impairment & Exit Costs	—		—			—	%	—	%		—	—		—	—	—
Adjusted Operating Income	$ 1,588		$ 1,255			26.5	%	24.7	%		333	23		82	158	70

Adjusted Operating Income Margin	53.8	%	47.4	%		6.4pp		6.4pp

Net revenues, excluding favorable currency, increased by 10.0%, reflecting: favorable volume/mix, mainly driven by higher heated tobacco unit volume (notably in Germany, Italy and Poland), partly offset by lower cigarette volume (notably in Poland); and a favorable pricing variance (driven by higher combustible pricing, notably in Germany).

Operating income, excluding favorable currency, increased by 24.7%, reflecting: favorable volume/mix, driven by the same factors as for net revenues noted above; a favorable pricing variance; lower manufacturing costs across the Region; and lower marketing, administration and research costs.

Adjusted operating income margin, excluding currency, increased by 6.4 points to 53.8%, as detailed in Schedule 8.

- 11 -

Nine Months Year-to-Date


Financial Summary - Nine Months Ended September 30,						Change Fav./(Unfav.)						Variance Fav./(Unfav.)
			2020		2019			Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 7,960		$ 7,381			7.8	%	9.6	%		579	(130)	142	567	—

Operating Income	$ 3,924		$ 3,346			17.3	%	20.5	%		578	(107)	142	534	9
Asset Impairment & Exit Costs (1)	(27)		—			—	%	—	%		(27)	—	—	—	(27)
Adjusted Operating Income	$ 3,951		$ 3,346			18.1	%	21.3	%		605	(107)	142	534	36

Adjusted Operating Income Margin	49.6	%	45.3	%		4.3pp		4.9pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues, excluding unfavorable currency, increased by 9.6%, reflecting: favorable volume/mix, mainly driven by higher heated tobacco unit volume across the Region (notably in the Czech Republic, Germany, Hungary, Italy and Poland), partly offset by lower cigarette volume (notably in Italy, Poland and Spain, partly offset by Germany); and a favorable pricing variance (driven by higher combustible pricing across the Region, notably in France and Germany, partly offset by lower heated tobacco unit and IQOS device pricing).

Operating income, excluding unfavorable currency, increased by 20.5%, mainly reflecting: favorable volume/mix, driven by the same factors as for net revenues noted above; a favorable pricing variance; and lower manufacturing costs (notably in Germany and Italy); partly offset by higher marketing, administration and research costs (largely related to increased investments behind reduced-risk products, notably in Poland, as well as 2020 asset impairment and exit costs).

Excluding asset impairment, exit costs and unfavorable currency, adjusted operating income increased by 21.3%. Adjusted operating income margin, excluding currency, increased by 4.9 points to 50.2%, as detailed in Schedule 8.

- 12 -

Total Market, PMI Shipment & Market Share Commentaries


European Union Key Data	Third-Quarter										Nine Months Year-to-Date
					Change						Change
	2020		2019		% / pp		2020		2019		% / pp
Total Market (billion units)	131.5		132.3		(0.6)	%	356.3		363.9		(2.1)	%

PMI Shipment Volume (million units)
Cigarettes	45,179		47,238		(4.4)	%	126,142		133,093		(5.2)	%
Heated Tobacco Units	5,181		3,474		49.1	%	14,069		8,810		59.7	%
Total EU	50,360		50,712		(0.7)	%	140,211		141,903		(1.2)	%

PMI Market Share
Marlboro	17.7	%	18.0	%	(0.3)		17.7	%	18.1	%	(0.4)
L&M	6.0	%	6.7	%	(0.7)		6.3	%	6.7	%	(0.4)
Chesterfield	5.5	%	5.7	%	(0.2)		5.6	%	5.8	%	(0.2)
Philip Morris	2.5	%	2.7	%	(0.2)		2.5	%	2.7	%	(0.2)
HEETS	3.9	%	2.4	%	1.5		3.9	%	2.3	%	1.6
Others	3.1	%	3.1	%	—		3.1	%	3.2	%	(0.1)
Total EU	38.7	%	38.6	%	0.1		39.1	%	38.8	%	0.3

Third-Quarter

The estimated total market in the EU decreased by 0.6% to 131.5 billion units, notably driven by:

•Denmark, down by 36.1%, mainly reflecting the net unfavorable impact of estimated trade inventory movements related to a significant excise tax increase on April 1, 2020. Excluding these movements, the total estimated market decreased by 11.8%, mainly due to the impact of excise tax-driven price increases;

•Romania, down by 7.9%, primarily reflecting the impact of pandemic-related lockdown measures; and

•Spain, down by 7.3%, mainly reflecting lower in-bound tourism and border sales due to the pandemic;

partly offset by

•Poland, up by 8.6%, notably reflecting the pandemic-related impact of: lower cross-border (non-domestic) purchases, reduced out-bound tourism and a lower estimated prevalence of illicit trade due to border restrictions.

PMI's total shipment volume decreased by 0.7% to 50.4 billion units, reflecting:

•lower cigarette shipment volume, mainly due to lower market share (notably in Italy and Poland, partly reflecting out-switching to heated tobacco units);

partly offset by

•higher heated tobacco unit shipment volume across the Region, driven by higher market share (notably in Italy and Poland).

- 13 -

Nine Months Year-to-Date

The estimated total market in the EU decreased by 2.1% to 356.3 billion units, notably due to:

•Czech Republic, down by 7.5%, primarily reflecting lower border sales due to lockdown measures, particularly during the second quarter;

•France, down by 3.7%, mainly reflecting the impact of price increases in the fourth quarter of 2019 and the first quarter of 2020, partly offset by the pandemic-related impact of lower cross-border (non-domestic) purchases and a lower estimated prevalence of illicit trade due to border restrictions;

•Greece, down by 8.5%, primarily reflecting lower in-bound tourism due to the pandemic;

•Romania, down by 7.1%, mainly reflecting the same factor as in the quarter; and

•Spain, down by 7.8%, primarily reflecting the same factors as in the quarter;

partly offset by

•Germany, up by 2.4%, notably reflecting the pandemic-related impact of lower cross-border (non-domestic) purchases and reduced out-bound tourism, partly offset by the impact of retail price increases in the first quarter of 2020 and adult smoker out-switching to other combustible tobacco products.

PMI's total shipment volume decreased by 1.2% to 140.2 billion units, reflecting:

•lower cigarette shipment volume, mainly due to the lower total market and lower cigarette market share (notably in Italy and Poland, partly reflecting out-switching to heated tobacco units);

partly offset by

•higher heated tobacco unit shipment volume across the Region (notably in Germany, Italy and Poland), driven by higher market share.

EASTERN EUROPE REGION

Third-Quarter


Financial Summary - Quarters Ended September 30,						Change Fav./(Unfav.)						Variance Fav./(Unfav.)
			2020		2019			Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 899		$ 899			—	%	7.3	%		—	(66)	64	2	—

Operating Income (Loss)	$ 245		$ (101)			+100%		+100%			346	(105)	64	17	370
Asset Impairment & Exit Costs	—		—			—	%	—	%		—	—	—	—	—
Russia Excise and VAT Audit Charge (1)	—		(374)			+100%		+100%			374	—	—	—	374
Adjusted Operating Income	$ 245		$ 273			(10.3)	%	28.2	%		(28)	(105)	64	17	(4)

Adjusted Operating Income Margin	27.3	%	30.4	%		(3.1)pp		5.9pp
⁽¹⁾ Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues, excluding unfavorable currency, increased by 7.3%, mainly reflecting: a favorable pricing variance, driven by higher combustible pricing (predominantly in Russia); and favorable volume/mix, mainly

- 14 -

driven by higher heated tobacco unit volume across the Region (primarily in Russia and Ukraine), largely offset by unfavorable cigarette volume/mix in Russia.

Operating income, excluding unfavorable currency, increased by +100%, notably reflecting a favorable comparison, shown in "Cost/Other," due to a charge recorded in the third quarter of 2019 of $374 million related to the Russia excise and VAT audit.

Excluding this charge and unfavorable currency, adjusted operating income increased by 28.2%, reflecting: a favorable pricing variance; favorable volume/mix, reflecting the same drivers as for net revenues noted above; and lower manufacturing costs (mainly in Russia); partially offset by higher marketing, administration and research costs due to Russia.

Adjusted operating income margin, excluding currency, increased by 5.9 points to 36.3%, as detailed in Schedule 8.

Nine Months Year-to-Date


Financial Summary - Nine Months Ended September 30,						Change Fav./(Unfav.)						Variance Fav./(Unfav.)
			2020		2019			Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 2,470		$ 2,300			7.4	%	13.7	%		170	(145)	105	210	—

Operating Income	$ 610		$ 284			+100%		+100%			326	(208)	105	156	273
Asset Impairment & Exit Costs (1)	(7)		—			—	%	—	%		(7)	—	—	—	(7)
Russia Excise and VAT Audit Charge (1)	—		(374)			+100%		+100%			374	—	—	—	374

Adjusted Operating Income	$ 617		$ 658			(6.2)	%	25.4	%		(41)	(208)	105	156	(94)

Adjusted Operating Income Margin	25.0	%	28.6	%		(3.6)pp		2.9pp
⁽¹⁾ Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues, excluding unfavorable currency, increased by 13.7%, reflecting: favorable volume/mix, predominantly driven by higher heated tobacco unit volume across the Region (notably in Russia and Ukraine) and higher heated tobacco unit mix (mainly in Russia), partly offset by unfavorable cigarette volume (primarily in Russia and Ukraine, partially offset by Israel) and unfavorable cigarette mix (mainly in Russia); and a favorable pricing variance, driven by higher combustible pricing (primarily in Russia and Ukraine), partly offset by lower IQOS device pricing (mainly in Russia).

Operating income, excluding unfavorable currency, increased by +100%, notably reflecting a favorable comparison, shown in "Cost/Other," primarily due to a charge recorded in 2019 of $374 million related to the Russia excise and VAT audit.

Excluding charges and unfavorable currency, adjusted operating income increased by 25.4%, reflecting: favorable volume/mix, driven by the same factors as for net revenues noted above; and a favorable pricing variance; partly offset by higher marketing, administration and research costs (partly related to increased investments behind reduced-risk products, notably in Russia); and higher manufacturing costs due to Russia.

Adjusted operating income margin, excluding currency, increased by 2.9 points to 31.5%, as detailed in Schedule 8.

- 15 -

Total Market, PMI Shipment & Market Share Commentaries


PMI Shipment Volume	Third-Quarter						Nine Months Year-to-Date
(million units)	2020	2019	Change		2020	2019	Change
Cigarettes	25,661	27,379	(6.3)	%	70,737	74,779	(5.4)	%
Heated Tobacco Units	4,882	3,858	26.5	%	14,374	8,213	75.0	%
Total Eastern Europe	30,543	31,237	(2.2)	%	85,111	82,992	2.6	%

Third-Quarter

The estimated total market in Eastern Europe decreased, mainly due to:

•Russia, down by 2.9%, primarily reflecting the impact of price increases; and

•Ukraine, down by 7.4%, mainly reflecting the impact of excise tax-driven price increases.

PMI's total shipment volume decreased by 2.2% to 30.5 billion units, notably due to:

•Russia, down by 1.4%. Excluding the net unfavorable impact of estimated distributor inventory movements, PMI's in-market sales increased by 0.4%, mainly reflecting a higher market share, driven by heated tobacco units, partly offset by the lower total market.

Nine Months Year-to-Date

The estimated total market in Eastern Europe decreased, notably due to:

•Russia, down by 2.7%, or by 4.3% excluding the net favorable impact of estimated trade inventory movements, primarily reflecting the same factor as in the quarter; and

•Ukraine, down by 9.7%, mainly reflecting the impact of excise tax-driven price increases, as well as reduced adult smoker average daily consumption, notably in the second quarter of 2020, due to lockdown measures.

PMI's total shipment volume increased by 2.6% to 85.1 billion units, mainly due to:

•Russia, up by 5.8%, primarily reflecting a higher market share, driven by heated tobacco units, partly offset by the lower total market;

partly offset by

•Ukraine, down by 4.8%, mainly due to the lower total market, partly offset by a higher market share, driven by heated tobacco units.

- 16 -

MIDDLE EAST & AFRICA REGION

Third-Quarter


Financial Summary - Quarters Ended September 30,						Change Fav./(Unfav.)						Variance Fav./(Unfav.)
			2020		2019			Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 768		$ 1,127			(31.9)	%	(29.4)	%		(359)	(28)	6	(325)	(12)

Operating Income	$ 261		$ 519			(49.7)	%	(46.8)	%		(258)	(15)	6	(271)	22
Asset Impairment & Exit Costs	—		—			—	%	—	%		—	—	—	—	—
Adjusted Operating Income	$ 261		$ 519			(49.7)	%	(46.8)	%		(258)	(15)	6	(271)	22

Adjusted Operating Income Margin	34.0	%	46.1	%		(12.1)pp		(11.4)pp

Net revenues, excluding unfavorable currency, decreased by 29.4%, primarily reflecting: unfavorable volume/mix, mainly due to lower cigarette and heated tobacco unit volume in PMI Duty Free; partly offset by a favorable pricing variance, driven by PMI Duty Free and Saudi Arabia, largely offset by Turkey.

Operating income, excluding unfavorable currency, decreased by 46.8%, notably reflecting: unfavorable volume/mix, due to the same factor as for net revenues noted above; partly offset by lower marketing, administration and research costs; lower manufacturing costs; and a favorable pricing variance.

Adjusted operating income margin, excluding currency, decreased by 11.4 points to 34.7%, as detailed in Schedule 8.

Nine Months Year-to-Date


Financial Summary - Nine Months Ended September 30,						Change Fav./(Unfav.)						Variance Fav./(Unfav.)
			2020		2019			Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 2,348		$ 3,058			(23.2)	%	(21.7)	%		(710)	(46)	123	(736)	(51)

Operating Income	$ 819		$ 1,304			(37.2)	%	(35.0)	%		(485)	(29)	123	(565)	(14)
Asset Impairment & Exit Costs (1)	(9)		—			—	%	—	%		(9)	—	—	—	(9)
Adjusted Operating Income	$ 828		$ 1,304			(36.5)	%	(34.3)	%		(476)	(29)	123	(565)	(5)

Adjusted Operating Income Margin	35.3	%	42.6	%		(7.3)pp		(6.8)pp
⁽¹⁾ Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues, excluding unfavorable currency, decreased by 21.7%, reflecting: unfavorable volume/mix, mainly due to lower cigarette volume (predominantly in PMI Duty Free and Turkey) and lower heated tobacco unit volume in PMI Duty Free; and lower fees for certain distribution rights billed to customers in certain markets, shown in "Cost/Other"; partially offset by a favorable pricing variance, driven by combustible pricing (mainly in the GCC, particularly Saudi Arabia, as well as Egypt and PMI Duty Free, partly offset by Turkey).

- 17 -

Operating income, excluding unfavorable currency, decreased by 35.0%, mainly reflecting: unfavorable volume/mix, predominantly due to lower cigarette and heated tobacco unit volume in PMI Duty Free; and unfavorable "Cost/Other," mainly due to lower fees for certain distribution rights, as noted above for net revenues; partially offset by a favorable pricing variance; and lower marketing, administration and research costs.

Excluding asset impairment, exit costs and unfavorable currency, adjusted operating income decreased by 34.3%. Adjusted operating income margin, excluding currency, decreased by 6.8 points to 35.8%, as detailed in Schedule 8.

Total Market, PMI Shipment & Market Share Commentaries


PMI Shipment Volume	Third-Quarter						Nine Months Year-to-Date
(million units)	2020	2019	Change		2020	2019	Change
Cigarettes	30,903	36,994	(16.5)	%	88,087	101,957	(13.6)	%
Heated Tobacco Units	179	588	(69.6)	%	834	2,061	(59.5)	%
Total Middle East & Africa	31,082	37,582	(17.3)	%	88,921	104,018	(14.5)	%

Third-Quarter

The estimated total market in the Middle East & Africa decreased, mainly due to:

•International Duty Free, down by 72.8%, reflecting the impact of government travel restrictions and reduced passenger traffic due to the pandemic; and

•South Africa, down by 25.8%, reflecting the impact of the pandemic-related ban on all tobacco sales through August 17, 2020.

PMI's total shipment volume decreased by 17.3% to 31.1 billion units, notably due to:

•PMI Duty Free, down by 93.7%, or by 68.7% excluding the net unfavorable impact of estimated distributor inventory movements (driven by cigarettes), mainly reflecting the lower total market; and

•Turkey, down by 4.9%, primarily reflecting a lower market share mainly due to adult smoker down-trading following 2019 retail price increases;

partly offset by

•Saudi Arabia, up by 23.4%. Excluding the net favorable impact of estimated distributor inventory movements of 0.7 billion cigarettes, PMI's in-market sales decreased by 9.4%, mainly reflecting a lower market share due to adult smoker down-trading following VAT-driven retail price increases and the temporary adverse impact of the transition to a new distributor.

Nine Months Year-to-Date

The estimated total market in the Middle East & Africa decreased, mainly due to:

•Egypt, down by 5.4%, notably reflecting pandemic-related supply-chain shortages involving competitors' products and reductions in adult smoker average daily consumption during the lockdown;

•International Duty Free, down by 63.1%, reflecting the same factors as in the quarter;

•South Africa, down by 42.7%, primarily reflecting the same factor as in the quarter; and

- 18 -

•Turkey, down by 7.3%, mainly reflecting the impact of lockdown measures on adult smoker average daily consumption, as well as a higher prevalence of illicit trade related to cut tobacco, particularly during the first-half of 2020, following significant industry-wide price increases in 2019.

PMI's total shipment volume decreased by 14.5% to 88.9 billion units, notably due to:

•PMI Duty Free, down by 68.9%, or by 59.2% excluding the net unfavorable impact of estimated distributor inventory movements (driven by cigarettes), mainly reflecting the lower total market; and

•Turkey, down by 13.0%, mainly reflecting the lower total market and a lower market share, notably due to adult smoker down-trading following the 2019 price increases.

SOUTH & SOUTHEAST ASIA REGION

Third-Quarter


Financial Summary - Quarters Ended September 30,						Change Fav./(Unfav.)						Variance Fav./(Unfav.)
			2020		2019			Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 1,071		$ 1,246			(14.0)	%	(14.3)	%		(175)	3	(90)	(88)	—

Operating Income	$ 402		$ 539			(25.4)	%	(24.9)	%		(137)	(3)	(90)	(60)	16
Asset Impairment & Exit Costs	—		—			—	%	—	%		—	—	—	—	—
Adjusted Operating Income	$ 402		$ 539			(25.4)	%	(24.9)	%		(137)	(3)	(90)	(60)	16

Adjusted Operating Income Margin	37.5	%	43.3	%		(5.8)pp		(5.4)pp

Net revenues, excluding favorable currency, decreased by 14.3%, reflecting: an unfavorable pricing variance, due to Indonesia; and unfavorable volume/mix, principally due to lower cigarette volume in Indonesia, partly offset by favorable cigarette mix in Indonesia.

Operating income, excluding unfavorable currency, decreased by 24.9%, primarily reflecting: an unfavorable pricing variance; and unfavorable volume/mix, due to the same factors as for net revenues noted above; partly offset by lower marketing, administration and research costs (notably in Indonesia).

Adjusted operating income margin, excluding currency, decreased by 5.4 points to 37.9%, as detailed in Schedule 8.

- 19 -

Nine Months Year-to-Date


Financial Summary - Nine Months Ended September 30,						Change Fav./(Unfav.)						Variance Fav./(Unfav.)
			2020		2019			Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 3,211		$ 3,607			(11.0)	%	(10.3)	%		(396)	(24)	54	(426)	—

Operating Income	$ 1,290		$ 1,471			(12.3)	%	(12.3)	%		(181)	—	54	(296)	61
Asset Impairment & Exit Costs (1)	(11)		(20)			45.0	%	45.0	%		9	—	—	—	9
Adjusted Operating Income	$ 1,301		$ 1,491			(12.7)	%	(12.7)	%		(190)	—	54	(296)	52

Adjusted Operating Income Margin	40.5	%	41.3	%		(0.8)pp		(1.1)pp
⁽¹⁾ Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues, excluding unfavorable currency, decreased by 10.3%, reflecting: unfavorable volume/mix, primarily due to lower cigarette volume in Indonesia and the Philippines, partly offset by favorable cigarette mix in Indonesia; partially offset by a favorable pricing variance, principally driven by combustible pricing in the Philippines, partly offset by Indonesia.

Operating income, excluding currency, decreased by 12.3%, mainly reflecting: unfavorable volume/mix, due to the same factors as for net revenues noted above; partially offset by a favorable pricing variance; and lower marketing, administration and research costs (notably in Indonesia).

Excluding asset impairment, exit costs and currency, adjusted operating income decreased by 12.7%. Adjusted operating income margin, excluding currency, decreased by 1.1 points to 40.2%, as detailed in Schedule 8.

Total Market, PMI Shipment & Market Share Commentaries


PMI Shipment Volume	Third-Quarter						Nine Months Year-to-Date
(million units)	2020	2019	Change		2020	2019	Change
Cigarettes	37,238	42,362	(12.1)	%	108,179	130,230	(16.9)	%
Heated Tobacco Units	10	—	—	%	10	—	—	%
Total South & Southeast Asia	37,248	42,362	(12.1)	%	108,189	130,230	(16.9)	%

Third-Quarter

The estimated total market in South & Southeast Asia decreased, notably due to:

•India, down by 14.0%, primarily reflecting the impact of lockdown restrictions on the movement of certain products, including tobacco; and

•Indonesia, down by 9.3%, or by 6.1% excluding the net unfavorable impact of estimated trade inventory movements, mainly reflecting the impact of excise tax-driven price increases and pandemic-related measures on adult smoker average daily consumption;

partly offset by

•Pakistan, up by 32.3%, or by 1.0% excluding the net favorable impact of estimated trade inventory movements related to the timing of price increases in 2019.

PMI's total shipment volume decreased by 12.1% to 37.2 billion units, notably due to:

- 20 -

•Indonesia, down by 20.8%, reflecting the lower total market, as well as a lower market share, mainly due to: adult smoker down-trading to the tax-advantaged 'below tier one' segment, the impact of elevated price gaps in the tier one segment (partly due to the delay in minimum price enforcement), and the disproportionate impact of stricter public mobility restrictions in urban areas, where PMI’s share is higher; and

•the Philippines, down by 5.5%, mainly reflecting a lower market share for mid-price Fortune due to the impact of price increases in the third quarter of 2019;

partly offset by

•Pakistan, up by 36.0%, primarily reflecting the higher total market.

Nine Months Year-to-Date

The estimated total market in South & Southeast Asia decreased, notably due to:

•India, down by 20.4%, mainly reflecting the same factor as in the quarter;

•Indonesia, down by 9.4%, or by 11.8% excluding the net favorable impact of estimated trade inventory movements, primarily reflecting the same factors as in the quarter;

•Pakistan, down by 14.8%, mainly reflecting the impact of excise tax-driven price increases in June 2019 and value brand price increases in February 2020, coupled with the impact of trade supply disruption on tobacco product availability due to lockdown measures; and

•the Philippines, down by 10.7%, mainly reflecting the impact of pandemic-related quarantines, as well as industry-wide price increases in the third quarter of 2019.

PMI's total shipment volume decreased by 16.9% to 108.2 billion units, notably due to:

•Indonesia, down by 19.1%, reflecting the lower total market, as well as a lower market share, mainly due to the same factors as in the quarter;

•Pakistan, down by 26.2%, mainly reflecting the lower total market and a lower market share, mainly due to low-price Morven; and

•the Philippines, down by 13.7%, mainly reflecting the lower total market and a lower market share, primarily due to the same factor as in the quarter.

EAST ASIA & AUSTRALIA REGION

Third-Quarter


Financial Summary - Quarters Ended September 30,						Change Fav./(Unfav.)						Variance Fav./(Unfav.)
			2020		2019			Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 1,358		$ 1,252			8.5	%	7.0	%		106	18	92	(4)	—

Operating Income	$ 637		$ 451			41.2	%	37.5	%		186	17	92	(38)	115
Asset Impairment & Exit Costs	—		—			—	%	—	%		—	—	—	—	—
Adjusted Operating Income	$ 637		$ 451			41.2	%	37.5	%		186	17	92	(38)	115

Adjusted Operating Income Margin	46.9	%	36.0	%		10.9pp		10.3pp

- 21 -

Net revenues, excluding favorable currency, increased by 7.0%, reflecting: a favorable pricing variance, primarily driven by higher heated tobacco and combustible pricing in Japan (due to the impact of distributor inventory revaluation associated with the October 1, 2020, excise tax-driven price increases); partially offset by unfavorable volume/mix, mainly due to: lower cigarette volume in Japan and unfavorable cigarette mix in Australia, largely offset by higher IQOS device and heated tobacco unit volume (principally in Japan).

Operating income, excluding favorable currency, increased by 37.5%, mainly reflecting: a favorable pricing variance; lower manufacturing costs (primarily related to Japan); and lower marketing, administration and research costs (mainly related to reduced-risk products, notably in Japan); partly offset by unfavorable volume/mix, due to the same factors as for net revenues noted above.

Adjusted operating income margin, excluding currency, increased by 10.3 points to 46.3%, as detailed in Schedule 8.

Nine Months Year-to-Date


Financial Summary - Nine Months Ended September 30,						Change Fav./(Unfav.)						Variance Fav./(Unfav.)
			2020		2019			Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 4,045		$ 4,094			(1.2)	%	(1.1)	%		(49)	(3)	135	(181)	—

Operating Income	$ 1,792		$ 1,520			17.9	%	17.8	%		272	2	135	(134)	269
Asset Impairment & Exit Costs (1)	(13)		—			—	%	—	%		(13)	—	—	—	(13)
Adjusted Operating Income	$ 1,805		$ 1,520			18.8	%	18.6	%		285	2	135	(134)	282

Adjusted Operating Income Margin	44.6	%	37.1	%		7.5pp		7.4pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues, excluding unfavorable currency, decreased by 1.1%, reflecting: unfavorable volume/mix, mainly due to lower cigarette volume (primarily in Australia and Japan) and unfavorable cigarette mix in Australia, partly offset by higher heated tobacco unit volume in Japan; partially offset by a favorable pricing variance, mainly driven by higher heated tobacco and combustible pricing in Japan (partly reflecting the same factor as in the third quarter) and higher combustible pricing in Australia, partly offset by lower IQOS device pricing in Japan.

Operating income, excluding favorable currency, increased by 17.8%, mainly reflecting: lower marketing, administration and research costs (notably in Japan); lower manufacturing costs (mainly related to Japan and Korea); and a favorable pricing variance; partly offset by unfavorable volume/mix, primarily due to the same factors as for net revenues noted above.

Excluding asset impairment, exit costs and favorable currency, adjusted operating income increased by 18.6%. Adjusted operating income margin, excluding currency, increased by 7.4 points to 44.5%, as detailed in Schedule 8.

- 22 -

Total Market, PMI Shipment & Market Share Commentaries


PMI Shipment Volume	Third-Quarter						Nine Months Year-to-Date
(million units)	2020	2019	Change		2020	2019	Change
Cigarettes	10,784	12,692	(15.0)	%	35,154	38,650	(9.0)	%
Heated Tobacco Units	8,601	7,976	7.8	%	24,799	23,253	6.6	%
Total East Asia & Australia	19,385	20,668	(6.2)	%	59,953	61,903	(3.2)	%

Third-Quarter

The estimated total market in East Asia & Australia, excluding China, increased, primarily due to:

•Korea, up by 10.2%, or by 4.7% excluding the net favorable impact of estimated trade inventory movements, mainly driven by the shift of adult smokers from duty-free to domestic purchases due to the pandemic-related decline in international travel; and

•Taiwan, up by 8.0%, mainly driven by the same factor as for Korea;

partly offset by

•Japan, down by 2.8%, or by 9.0% excluding the net favorable impact of estimated trade inventory movements (primarily related to the October 1, 2020, excise tax-driven retail price increases), notably due to adult smoker out-switching from cigarettes to the cigarillo category.

PMI's total shipment volume decreased by 6.2% to 19.4 billion units, notably in:

•Japan, down by 10.6%. Excluding the net unfavorable impact of estimated distributor inventory movements of 1.3 billion cigarettes and 0.7 billion heated tobacco units, PMI's in-market sales increased by 4.2%, mainly driven by a higher market share for heated tobacco units, partly offset by the lower total market and a lower market share for cigarettes.

Nine Months Year-to-Date

The estimated total market in East Asia & Australia, excluding China, decreased, notably due to:

•Japan, down by 7.3%, or by 10.2% excluding the net favorable impact of estimated trade inventory movements. The lower total market mainly reflected the impact of reduced adult smoker consumption occasions due to pandemic-related measures, as well as adult smoker out-switching from cigarettes to the cigarillo category; and

•Australia, down by 9.9% or by 3.9% excluding the net unfavorable impact of estimated trade inventory movements, primarily reflecting the impact of excise tax-driven price increases;

partly offset by

•Korea, up by 6.0%, notably driven by the same factor as in the quarter.

PMI's total shipment volume decreased by 3.2% to 60.0 billion units, notably in:

•Japan, down by 4.2%, or by 0.9% excluding the net unfavorable impact of estimated distributor inventory movements, mainly due to the lower total market and a lower market share for cigarettes, partly offset by a higher market share for heated tobacco units; and

- 23 -

•Korea, down by 4.2%, primarily due to a lower market share, mainly reflecting the unfavorable impact of the growth of the cigarette new taste dimension segment, in which PMI has a relatively low share, partly offset by the higher total market.

LATIN AMERICA & CANADA REGION

Third-Quarter


Financial Summary - Quarters Ended September 30,						Change Fav./(Unfav.)						Variance Fav./(Unfav.)
			2020		2019			Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 400		$ 473			(15.4)	%	(5.9)	%		(73)	(45)	17	(43)	(2)

Operating Income	$ 110		$ 125			(12.0)	%	23.2	%		(15)	(44)	17	(31)	43
Asset Impairment & Exit Costs (1)	—		(22)			+100%		+100%			22	—	—	—	22


Adjusted Operating Income	$ 110		$ 147			(25.2)	%	4.8	%		(37)	(44)	17	(31)	21

Adjusted Operating Income Margin	27.5	%	31.1	%		(3.6)pp		3.5pp

⁽¹⁾ Included in marketing, administration and research costs at the consolidated operating income level.
Note: Net Revenues include revenues from shipments of Platform 1 devices, heated tobacco units and accessories to Altria Group, Inc., commencing in the third quarter of 2019, for sale under license in the United States.

Net revenues, excluding unfavorable currency, decreased by 5.9%, mainly reflecting: unfavorable volume/mix, notably due to lower cigarette volume in Argentina; partly offset by a favorable pricing variance, predominantly driven by higher combustible pricing in most markets across the Region.

Operating income, excluding unfavorable currency, increased by 23.2%, notably reflecting a favorable comparison, shown in "Cost/Other," due to asset impairment and exit costs recorded in the third quarter of 2019 associated with a plant closure in Colombia.

Excluding asset impairment, exit costs and unfavorable currency, adjusted operating income increased by 4.8%, primarily reflecting: a favorable pricing variance; and lower marketing, administration and research costs (notably in Argentina); partly offset by unfavorable volume/mix (due to the same factor as for net revenues noted above).

Adjusted operating income margin, excluding currency, increased by 3.5 points to 34.6%, as detailed in Schedule 8.

- 24 -

Nine Months Year-to-Date


Financial Summary - Nine Months Ended September 30,						Change Fav./(Unfav.)						Variance Fav./(Unfav.)
			2020		2019			Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other(1)
(in millions)
Net Revenues	$ 1,216		$ 1,652			(26.4)	%	(19.1)	%		(436)	(121)	107	(232)	(190)

Operating Income	$ 328		$ 100			+100%		+100%			228	(85)	107	(175)	381
Asset Impairment & Exit Costs (2)	(4)		(45)			91.1	%	91.1	%		41	—	—	—	41
Canadian Tobacco Litigation-Related Expense (2)	—		(194)			+100%		+100%			194	—	—	—	194
Loss on Deconsolidation of RBH (2)	—		(239)			+100%		+100%			239	—	—	—	239
Adjusted Operating Income	$ 332		$ 578			(42.6)	%	(27.9)	%		(246)	(85)	107	(175)	(93)

Adjusted Operating Income Margin	27.3	%	35.0	%		(7.7)pp		(3.8)pp
⁽¹⁾ Cost/Other variance includes the impact of the RBH deconsolidation.
⁽²⁾ Included in marketing, administration and research costs at the consolidated operating income level.
Note: Net Revenues include revenues from shipments of Platform 1 devices, heated tobacco units and accessories to Altria Group, Inc., commencing in the third quarter of 2019, for sale under license in the United States.

Net revenues, excluding unfavorable currency, decreased by 19.1%, reflecting: unfavorable volume/mix, due to lower cigarette volume, mainly in Argentina and Mexico; and the unfavorable impact of the deconsolidation of RBH shown in "Cost/Other"; partly offset by a favorable pricing variance, driven by higher combustible pricing across the Region (notably in Mexico). On a like-for-like basis, net revenues, excluding unfavorable currency, decreased by 9.2%, as detailed in Schedule 10.

Operating income, excluding unfavorable currency, increased by +100%, notably reflecting a favorable comparison, shown in "Cost/Other," primarily due to charges recorded in 2019 of $478 million related to: asset impairment and exit costs associated with a plant closure in Colombia, the loss on the deconsolidation of RBH, and the Canadian tobacco litigation-related expense.

Excluding charges and unfavorable currency, adjusted operating income decreased by 27.9%, mainly reflecting: unfavorable volume/mix, due to the same factor as for net revenues noted above; and the unfavorable impact of the deconsolidation of RBH, included in "Cost/Other"; partly offset by a favorable pricing variance; and lower marketing, administration and research costs (notably in Argentina). On a like-for-like basis, excluding unfavorable currency, adjusted operating income decreased by 8.4%, as detailed in Schedule 10.

Adjusted operating income margin, excluding currency, decreased by 3.8 points to 31.2%, as detailed in Schedule 8, or by 0.2 points to 31.0% on a like-for-like basis, as detailed in Schedule 10.

- 25 -

Total Market, PMI Shipment & Market Share Commentaries


PMI Shipment Volume	Third-Quarter						Nine Months Year-to-Date
(million units)	2020	2019	Change		2020	2019	Change
Cigarettes	15,699	16,854	(6.9)	%	45,542	52,906	(13.9)	%
Heated Tobacco Units	114	89	28.1	%	316	202	56.4	%
Total Latin America & Canada	15,813	16,943	(6.7)	%	45,858	53,108	(13.7)	%

Third-Quarter

The estimated total market in Latin America & Canada was essentially stable, notably reflecting:

•Brazil, up by 17.3%, mainly reflecting a lower estimated prevalence of illicit trade due to: reduced price gaps with legal products and the impact of border restrictions imposed as a result of the pandemic;

partly offset by

•Colombia, down by 19.0%, primarily reflecting reduced adult smoker average daily consumption due to the impact of pandemic-related mobility restrictions.

PMI's total shipment volume decreased by 6.7% to 15.8 billion units, mainly due to:

•Argentina, down by 16.9%, primarily reflecting a lower market share, mainly due to adult smoker down-trading to ultra-low-price brands produced by local manufacturers; and

•Colombia, down by 19.6%, mainly due to the lower total market;

partly offset by

•Brazil, up by 13.9%, mainly reflecting the higher total market.

Nine Months Year-to-Date

The estimated total market in Latin America & Canada decreased, notably due to:

•Colombia, down by 16.5%, primarily reflecting reduced product availability (mainly in the second quarter of 2020) and adult smoker average daily consumption due to the impact of pandemic-related mobility restrictions; and

•Mexico, down by 12.7%, mainly due to the impact of excise tax-driven price increases in January 2020, as well as the impact of pandemic-related measures on adult smoker average daily consumption;

partly offset by

•Brazil, up by 12.2%, mainly reflecting the same factors as in the quarter.

PMI's total shipment volume decreased by 13.7% to 45.9 billion units (or by 12.0% on a like-for-like basis), notably due to:

•Argentina, down by 15.1%, primarily reflecting a lower market share, mainly due to the impact of retail out-of-stock of PMI brands, during the second quarter, as well as adult smoker down-trading to ultra-low-price brands produced by local manufacturers;

•Canada, down by 26.0%, due to the unfavorable impact of the deconsolidation of RBH; and

•Colombia, down by 17.8%, primarily reflecting the same factor as in the quarter; and

- 26 -

•Mexico, down by 17.9%, mainly due to a lower total market and a lower market share, primarily reflecting: adult smoker down-trading following the January 2020 price increases and the impact of the pandemic on adult smoker consumption patterns;

partly offset by

•Brazil, up by 10.2%, mainly reflecting the higher total market.

- 27 -

Philip Morris International: Delivering a Smoke-Free Future

Philip Morris International (PMI) is leading a transformation in the tobacco industry to create a smoke-free future and ultimately replace cigarettes with smoke-free products to the benefit of adults who would otherwise continue to smoke, society, the company and its shareholders. PMI is a leading international tobacco company engaged in the manufacture and sale of cigarettes, as well as smoke-free products and associated electronic devices and accessories, and other nicotine-containing products in markets outside the U.S. In addition, PMI ships a version of its IQOS Platform 1 device and its consumables to Altria Group, Inc. for sale under license in the U.S., where the U.S. Food and Drug Administration (FDA) has authorized their marketing as a modified risk tobacco product (MRTP), finding that an exposure modification order for these products is appropriate to promote the public health. PMI is building a future on a new category of smoke-free products that, while not risk-free, are a much better choice than continuing to smoke. Through multidisciplinary capabilities in product development, state-of-the-art facilities and scientific substantiation, PMI aims to ensure that its smoke-free products meet adult consumer preferences and rigorous regulatory requirements. PMI's smoke-free product portfolio includes heat-not-burn and nicotine-containing vapor products. As of September 30, 2020, PMI estimates that approximately 11.7 million adult smokers around the world have already stopped smoking and switched to PMI's heat-not-burn product, available for sale in 61 markets in key cities or nationwide under the IQOS brand. For more information, please visit www.pmi.com and www.pmiscience.com.

Forward-Looking and Cautionary Statements

This press release contains projections of future results and other forward-looking statements. 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; health concerns relating to the use of tobacco and other nicotine-containing products and exposure to environmental tobacco smoke; litigation related to tobacco use and intellectual property; intense competition; the effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; changes in adult smoker behavior; 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 and quality of tobacco and other agricultural products and raw materials; 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 produce and commercialize reduced-risk products or if regulation or taxation do not differentiate between such products and cigarettes; if it is unable to successfully introduce new products, promote brand equity, enter new markets or improve its margins through increased prices and productivity gains; if it is unable to expand its brand portfolio internally or through acquisitions and the development of strategic business relationships; or if it is unable to attract and retain the best global talent. Future results are also subject to the lower predictability of our reduced-risk product category's performance.

- 28 -

The COVID-19 pandemic has created significant societal and economic disruption, and resulted in closures of stores, factories and offices, and restrictions on manufacturing, distribution and travel, all of which will adversely impact our business, results of operations, cash flows and financial position during the continuation of the pandemic. Our business continuity plans and other safeguards in place may not be effective to mitigate the impact of the pandemic. Currently, significant risks include our diminished ability to convert adult smokers to our RRPs, significant volume declines in our duty-free business and certain other key markets, disruptions or delays in our manufacturing and supply chain, increased currency volatility, and delays in certain cost saving, transformation and restructuring initiatives. Our business could also be adversely impacted if key personnel or a significant number of employees or business partners become unavailable due to the COVID-19 outbreak. The significant adverse impact of COVID-19 on the economic or political conditions in markets in which we operate could result in changes to the preferences of our adult consumers and lower demand for our products, particularly for our mid-price or premium-price brands. Continuation of the pandemic could disrupt our access to the credit markets or increase our borrowing costs. Governments may temporarily be unable to focus on the development of science-based regulatory frameworks for the development and commercialization of RRPs or on the enforcement or implementation of regulations that are significant to our business. In addition, messaging about the potential negative impacts of the use of our products on COVID-19 risks may lead to increasingly restrictive regulatory measures on the sale and use of our products, negatively impact demand for our products, the willingness of adult consumers to switch to our RRPs and our efforts to advocate for the development of science-based regulatory frameworks for the development and commercialization of RRPs.

The impact of these risks also depends on factors beyond our knowledge or control, including the duration and severity of the outbreak, its recurrence in our key markets, actions taken to contain its spread and to mitigate its public health effects, and the ultimate economic consequences thereof.

PMI is further subject to other risks detailed from time to time in its publicly filed documents, including the Form 10-Q for the quarter ended June 30, 2020. 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.

- 29 -

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.

•Unless otherwise stated, references to total industry, total market, PMI shipment volume and PMI market share performance reflect cigarettes and heated tobacco units.

•References to total international market, defined as worldwide cigarette and heated tobacco unit volume excluding the U.S., total industry, total market and market shares are PMI estimates for tax-paid products based on the latest available data from a number of internal and external sources and may, in defined instances, exclude the People's Republic of China and/or PMI's duty free business. In addition, to reflect the deconsolidation of PMI's Canadian subsidiary, Rothmans, Benson & Hedges, Inc. (RBH), effective March 22, 2019, PMI's total market share has been restated for previous periods.

•2020 third-quarter and nine months year-to-date estimates for total industry volume and market share in certain geographies reflect limitations on the availability and accuracy of industry data during pandemic-related restrictions.

•"OTP" is defined as "other tobacco products," primarily roll-your-own and make-your-own cigarettes, pipe tobacco, cigars and cigarillos, and does not include reduced-risk products.

•"Combustible products" is the term PMI uses to refer to cigarettes and OTP, combined.

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

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

•"North Africa" is defined as Algeria, Egypt, Libya, Morocco and Tunisia.

•"The GCC" (Gulf Cooperation Council) is defined as Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE).

•Following the deconsolidation of PMI's Canadian subsidiary, Rothmans, Benson & Hedges, Inc. (RBH), PMI will continue to report the volume of brands sold by RBH for which other PMI subsidiaries are the trademark owner. These include HEETS, Next, Philip Morris and Rooftop.

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

Financial

•Net revenues related to combustible products refer to the operating revenues generated from the sale of these products, including shipping and handling charges billed to customers, net of sales and promotion incentives, and excise taxes. PMI recognizes revenue when control is transferred to the customer, typically either upon shipment or delivery of goods.

•Net revenues related to RRPs represent the sale of heated tobacco units, IQOS devices and related accessories, and other nicotine-containing products, primarily e-vapor products, including shipping and handling charges billed to customers, net of sales and promotion incentives, and excise taxes. PMI recognizes revenue when control is transferred to the customer, typically either upon shipment or delivery of goods.

- 30 -

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

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

•"Cost/Other" in the Consolidated Financial Summary table of total PMI and the six operating segments of this release reflects the currency-neutral variances of: cost of sales (excluding the volume/mix cost component); marketing, administration and research costs (including asset impairment and exit costs, the Canadian tobacco litigation-related expense and the charge related to the deconsolidation of RBH in Canada); and amortization of intangibles. “Cost/Other” also includes the currency-neutral net revenue variance, unrelated to volume/mix and price components, attributable to fees for certain distribution rights billed to customers in certain markets in the ME&A Region, as well as the impact of the deconsolidation in RBH.

•"Adjusted Operating Income Margin" is calculated as adjusted operating income, divided by 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, and unusual items.

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

•Growth rates presented on an organic basis for consolidated financial results reflect currency-neutral underlying results and "like-for-like" comparisons, where applicable.

•Management reviews net revenues, OI, OI margins, operating cash flow and earnings per share, or "EPS," on an adjusted basis, which may exclude the impact of currency and other items such as acquisitions, asset impairment and exit costs, tax items and other special items. Organic growth rates reflect the way management views underlying performance for these measures. PMI believes that such measures, including pro forma measures, will provide useful insight into underlying business trends and results, and will provide a more meaningful performance comparison for the period during which RBH remains under CCAA protection. For PMI's 2018 pro forma adjusted diluted EPS by quarter and year-to-date, see Schedule 3 in PMI's third-quarter 2019 earnings release.

•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. For a reconciliation of non-GAAP measures to the most directly comparable U.S. GAAP measures, see the relevant schedules provided with this press release.

•U.S. GAAP Treatment of Argentina as a Highly Inflationary Economy. Following the categorization of Argentina by the International Practices Task Force of the Center for Audit Quality as a country with a three-year cumulative inflation rate greater than 100%, the country is considered highly inflationary in accordance with U.S. GAAP. Consequently, PMI began to account for the operations of its Argentinian affiliates as highly inflationary, and to treat the U.S. dollar as the functional currency of the affiliates, effective July 1, 2018.

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

Reduced-Risk Products

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

- 31 -

•"Heated tobacco units," or "HTUs," is the term PMI uses to refer to heated tobacco consumables, which include the company's HEETS, HEETS Creations, HEETS Dimensions, HEETS Marlboro and HEETS FROM MARLBORO (defined collectively as HEETS), Marlboro HeatSticks and Parliament HeatSticks, as well as the KT&G-licensed brand, Fiit (outside of Korea).

•Market share for HTUs is defined as the total sales volume for HTUs as a percentage of the total estimated sales volume for cigarettes and HTUs.

•Unless otherwise stated, all references to IQOS are to PMI's heat-not-burn products.

•The IQOS heat-not-burn device is a precisely controlled heating device into which a specially designed and proprietary tobacco unit is inserted and heated to generate an aerosol.

•“Total IQOS users” is defined as the estimated number of Legal Age (minimum 18 years) IQOS users that used PMI HTUs for at least 5% of their daily tobacco consumption over the past seven days.

•The estimated number of people who have "stopped smoking and switched to IQOS" is defined as: for markets where IQOS is the only heat-not-burn product, daily individual consumption of PMI HTUs represents the totality of their daily tobacco consumption in the past seven days; for markets where IQOS is one 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% are PMI HTUs.

IQOS in the United States

•On April 30, 2019, the U.S. Food and Drug Administration (FDA) announced that the marketing of a version of IQOS, PMI's heat-not-burn product, together with its heated tobacco units (the term PMI uses to refer to heated tobacco consumables), is appropriate for the protection of public health and authorized it for sale in the U.S. The FDA’s decision follows its comprehensive assessment of PMI’s premarket tobacco product applications (PMTAs) submitted to the Agency in 2017. In the third quarter of 2019, PMI brought a version of its IQOS Platform 1 device and three variants of its heated tobacco units to the U.S. through its license with Altria Group, Inc., whose subsidiary, Philip Morris USA Inc., is responsible for marketing the product and complying with the provisions set forth in the FDA's marketing order. On March 30, 2020, PMI submitted a supplemental PMTA for the IQOS 3 tobacco heating device with the FDA.

•On July 7, 2020, the FDA authorized the marketing of a version of IQOS, together with its heated tobacco units, as a modified risk tobacco product (MRTP). In doing so, the agency found that an IQOS exposure modification order is appropriate to promote the public health. The decision follows a review of the extensive scientific evidence package PMI submitted to the FDA in December 2016 to support its MRTP applications.

•Shipment volume of heated tobacco units to the U.S. is included in the heated tobacco unit shipment volume of the Latin America & Canada segment. Revenues from shipments of Platform 1 devices, heated tobacco units and accessories to Altria Group, Inc. for sale under license in the U.S. are included in Net Revenues of the Latin America & Canada segment.

- 32 -


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

Quarters Ended September 30,
Market		Total Market, bio units						PMI Shipments, bio units																			PMI Market Share, % ⁽¹⁾
										Total						Cigarette						HTU				Total		HTU
			2020	2019	% Change		2020	2019	% Change		2020	2019	% Change		2020	2019	% Change		2020	2019	pp Change		2020	2019	pp Change

Total		669.8	693.5	(3.4)		184.4	199.5	(7.6)		165.5	183.5	(9.8)		19.0	16.0	18.7		28.2	28.9	(0.7)		3.1	2.3	0.8

European Union
France		9.8	10.2	(3.5)		4.2	4.5	(7.5)		4.1	4.5	(7.9)		—	—	—		45.3	45.0	0.3		0.5	0.2	0.3
Germany		20.4	20.7	(1.8)		7.4	7.4	0.3		7.0	7.2	(1.7)		0.4	0.2	59.6		36.4	35.7	0.7		1.9	1.1	0.8
Italy		18.8	18.3	2.4		9.7	9.5	1.6		8.2	8.5	(3.3)		1.5	1.1	40.6		52.1	52.0	0.1		7.8	4.6	3.2
Poland		13.5	12.5	8.6		5.1	5.3	(3.4)		4.5	5.0	(10.3)		0.6	0.3	+100		37.8	42.5	(4.7)		4.7	2.4	2.3
Spain		11.7	12.6	(7.3)		3.7	3.8	(4.1)		3.6	3.8	(4.4)		0.1	0.1	7.4		32.2	31.6	0.6		0.9	0.7	0.2

Eastern Europe
Russia		60.0	61.8	(2.9)		18.6	18.9	(1.4)		15.5	16.2	(4.2)		3.1	2.7	15.7		31.7	30.7	1.0		5.8	4.0	1.8

Middle East & Africa
Saudi Arabia		5.5	5.5	0.2		2.4	2.0	23.4		2.4	2.0	22.3		—	—	—		36.9	40.8	(3.9)		0.4	—	0.4
Turkey	32.3	31.8	1.6		13.5	14.2	(4.9)		13.5	14.2	(4.9)		—	—	—		41.7	44.5	(2.8)		—	—	—

South & Southeast Asia
Indonesia		70.2	77.5	(9.3)		19.8	25.0	(20.8)		19.8	25.0	(20.8)		—	—	—		28.2	32.3	(4.1)		—	—	—
Philippines		17.5	17.3	1.0		11.7	12.4	(5.5)		11.7	12.4	(5.6)		—	—	—		66.8	71.4	(4.6)		—	—	—

East Asia & Australia
Australia		3.2	3.2	0.4		1.0	0.9	8.1		1.0	0.9	8.1		—	—	—		29.8	27.7	2.1		—	—	—
Japan		40.7	41.9	(2.8)		11.9	13.3	(10.6)		4.6	6.5	(29.4)		7.3	6.8	7.4		36.9	34.5	2.4		20.5	17.1	3.4
Korea		20.2	18.4	10.2		3.9	4.1	(3.4)		2.7	2.9	(7.2)		1.2	1.1	6.6		19.5	22.2	(2.7)		6.0	6.2	(0.2)

Latin America & Canada
Argentina		8.4	8.4	0.7		4.9	5.9	(16.9)		4.9	5.9	(16.9)		—	—	—		58.1	69.6	(11.5)		—	—	—

Mexico		7.7	7.7	0.2		4.8	4.9	(0.9)		4.8	4.9	(1.2)		—	—	—		62.7	63.4	(0.7)		0.2	—	0.2

(1) Market share estimates are calculated using IMS data
Note: % change for Total Market and PMI shipments is computed based on millions of units; PMI Market Share estimates for previous periods are restated to reflect RBH deconsolidation and exclude RBH-owned brands.


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

Nine Months Ended September 30,
Market		Total Market, bio units						PMI Shipments, bio units																			PMI Market Share, % ⁽¹⁾
										Total						Cigarette						HTU				Total		HTU
			2020	2019	% Change		2020	2019	% Change		2020	2019	% Change		2020	2019	% Change		2020	2019	pp Change		2020	2019	pp Change

Total		1,892.9	2,018.7	(6.2)		528.2	574.2	(8.0)		473.8	531.6	(10.9)		54.4	42.5	27.9		27.9	28.4	(0.5)		2.9	2.1	0.8

European Union
France		28.0	29.1	(3.7)		12.7	13.1	(3.4)		12.5	13.1	(4.1)		0.1	0.1	+100		44.9	44.9	—		0.5	0.2	0.3
Germany		56.4	55.1	2.4		22.0	20.8	5.7		20.8	20.2	3.1		1.2	0.6	92.2		38.9	37.7	1.2		2.1	1.1	1.0
Italy		50.8	51.1	(0.6)		26.7	26.6	0.7		22.8	24.1	(5.6)		4.0	2.5	62.3		52.0	51.6	0.4		7.6	4.3	3.3
Poland		35.0	35.4	(1.1)		13.6	14.5	(6.3)		12.1	13.8	(12.6)		1.6	0.7	+100		38.9	41.1	(2.2)		4.5	2.1	2.4
Spain		31.7	34.4	(7.8)		10.1	11.3	(10.9)		9.8	11.1	(11.7)		0.3	0.2	27.1		31.5	31.5	—		1.0	0.7	0.3

Eastern Europe
Russia	163.6	168.1	(2.7)		51.6	48.8	5.8		42.3	43.4	(2.7)		9.3	5.3	74.5		32.3	29.7	2.6		6.0	3.3	2.7

Middle East & Africa
Saudi Arabia		15.8	16.1	(1.8)		6.2	6.7	(6.4)		6.2	6.7	(7.1)		—	—	—		38.5	40.5	(2.0)		0.2	—	0.2
Turkey	86.6	93.4	(7.3)		35.3	40.6	(13.0)		35.3	40.6	(13.0)		—	—	—		40.7	43.4	(2.7)		—	—	—

South & Southeast Asia
Indonesia		201.7	222.7	(9.4)		58.3	72.1	(19.1)		58.3	72.1	(19.1)		—	—	—		28.9	32.4	(3.5)		—	—	—
Philippines		47.0	52.7	(10.7)		32.1	37.2	(13.7)		32.1	37.2	(13.7)		—	—	—		68.4	70.7	(2.3)		—	—	—

East Asia & Australia
Australia		8.3	9.2	(9.9)		2.5	2.6	(3.6)		2.5	2.6	(3.6)		—	—	—		29.6	27.6	2.0		—	—	—
Japan		111.3	120.1	(7.3)		38.8	40.5	(4.2)		17.7	20.9	(15.4)		21.1	19.5	7.8		36.7	34.3	2.4		20.0	16.9	3.1
Korea		54.8	51.7	6.0		11.3	11.8	(4.2)		7.8	8.2	(5.0)		3.5	3.6	(2.2)		20.7	22.9	(2.2)		6.4	6.9	(0.5)

Latin America & Canada
Argentina		24.1	24.7	(2.3)		14.9	17.6	(15.1)		14.9	17.6	(15.1)		—	—	—		61.9	71.2	(9.3)		—	—	—

Mexico		21.9	25.1	(12.7)		13.6	16.6	(17.9)		13.6	16.6	(18.1)		—	—	—		62.0	65.9	(3.9)		0.2	—	0.2

(1) Market share estimates are calculated using IMS data
Note: % change for Total Market and PMI shipments is computed based on millions of units; PMI Market Share estimates for previous periods are restated to reflect RBH deconsolidation and exclude RBH-owned brands.


										Appendix 3
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Shipment Volume Adjusted for the Impact of RBH Deconsolidation
(in million units) / (Unaudited)


	Total PMI	Quarters Ended September 30,								Nine Months Ended September 30,
		2020		2019			% Change	2020				2019	% Change
	Total Shipment Volume	184,431	199,504		(7.6)	%	528,243	574,154		(8.0)	%
	Shipment Volume for RBH-owned brands (1)		—					(1,008)	(2)
	Total Shipment Volume	184,431	199,504		(7.6)	%	528,243	573,146	(3)	(7.8)	%

	Total Cigarette Shipment Volume	165,464	183,519		(9.8)	%	473,841	531,615		(10.9)	%
	Shipment Volume for RBH-owned brands (1)		—					(1,008)	(2)
	Total Cigarette Shipment Volume	165,464	183,519		(9.8)	%	473,841	530,607	(3)	(10.7)	%

	Total HTU Shipment Volume	18,967	15,985		18.7	%	54,402	42,539		27.9	%

	Latin America & Canada

	Total Shipment Volume	15,813	16,943		(6.7)	%	45,858	53,108		(13.7)	%
	Shipment Volume for RBH-owned brands		—					(995)	(2)
	Total Shipment Volume	15,813	16,943		(6.7)	%	45,858	52,113	(3)	(12.0)	%

	(1) Includes Duty Free sales in Canada
	(2) Represents volume for RBH-owned brands from January 1, 2019 through March 21, 2019
	(3) Pro forma
	Note: Shipment Volume includes Cigarettes and Heated Tobacco Units; following the deconsolidation of RBH, we report the volume of brands sold by RBH for which other PMI subsidiaries are the trademark owners


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

	Quarters Ended							Diluted EPS		Nine Months Ended
	September 30,											September 30,
		$	1.48			2020 Diluted Earnings Per Share (1)		$	3.90
		$	1.22			2019 Diluted Earnings Per Share (1)		$	3.57
		$	0.26			Change		$	0.33
		21.3		%		% Change		9.2			%

						Reconciliation:
		$	1.22			2019 Diluted Earnings Per Share (1)		$	3.57
		0.01				2019 Asset impairment and exit costs		0.03
		—				2019 Canadian tobacco litigation-related expense		0.09
		—				2019 Loss on deconsolidation of RBH		0.12
		0.20				2019 Russia excise and VAT audit charge		0.20

		—				2019 Tax items		(0.04)



		—				2020 Asset impairment and exit costs		(0.04)
		—				2020 Fair value adjustment for equity security investments		(0.04)
		0.06				2020 Tax items		0.06
		(0.09)				Currency		(0.28)
		(0.01)				Interest		(0.01)
		(0.02)				Change in tax rate		—

		0.11				Operations (2)		0.24
		$	1.48			2020 Diluted Earnings Per Share (1)		$	3.90

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

	Quarters Ended									Nine Months Ended
	September 30,									September 30,
	2020				2019			2020					2019
	$ 2,307				$ 1,896		Net Earnings attributable to PMI	$ 6,080					$ 5,569
	5				5		Less: Distributed and undistributed earnings attributable to share-based payment awards	15					13
	$ 2,302				$ 1,891		Net Earnings for basic and diluted EPS	$ 6,065					$ 5,556

	1,558				1,556		Weighted-average shares for basic EPS	1,557					1,556
	—				—		Plus Contingently Issuable Performance Stock Units	—					—
	1,558				1,556		Weighted-average shares for diluted EPS	1,557					1,556

(2) Includes the impact of shares outstanding and share-based payments


										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 September 30,							Nine Months Ended September 30,
	2020	2019	% Change			2020	2019	% Change
	$ 1.48	$ 1.22	21.3	%	Reported Diluted EPS	$ 3.90	$ 3.57	9.2	%
	(0.09)				Less: Currency	(0.28)
	$ 1.57	$ 1.22	28.7	%	Reported Diluted EPS, excluding Currency	$ 4.18	$ 3.57	17.1	%


	Quarters Ended September 30,							Nine Months Ended September 30,				Year Ended
	2020	2019	% Change			2020	2019	% Change			2019
	$ 1.48	$ 1.22	21.3	%	Reported Diluted EPS	$ 3.90	$ 3.57	9.2	%		$ 4.61
	—	0.01			Asset impairment and exit costs	0.04	0.03				0.23
	—	—			Canadian tobacco litigation-related expense	—	0.09				0.09
	—	—			Loss on deconsolidation of RBH	—	0.12				0.12
	—	0.20			Russia excise and VAT audit charge	—	0.20				0.20
	—	—			Fair value adjustment for equity security investments	0.04	—				(0.02)
	(0.06)	—			Tax items	(0.06)	(0.04)				(0.04)
	$ 1.42	$ 1.43	(0.7)	%	Adjusted Diluted EPS	$ 3.92	$ 3.97	(1.3)	%		$ 5.19
	(0.09)				Less: Currency	(0.28)
	$ 1.51	$ 1.43	5.6	%	Adjusted Diluted EPS, excluding Currency	$ 4.20	$ 3.97	5.8	%


												Schedule 3
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Diluted EPS to Pro Forma Adjusted Diluted EPS
(Unaudited)


		Quarter Ended			Quarter Ended			Six Months Ended		Quarter Ended		Nine Months Ended			Quarter Ended	Year Ended
		March 31,			June 30,			June 30,		September 30,		September 30,			December 31,	December 31,
		2019			2019			2019		2019		2019			2019	2019
	Reported Diluted EPS	$ 0.87		$ 1.49		$ 2.36		$ 1.22	$ 3.57		$ 1.04	$	4.61
	Asset impairment and exit costs	0.01		0.01		0.02		0.01	0.03		0.20	0.23
	Canadian tobacco litigation-related expense	0.09		—		0.09		—	0.09		—	0.09
	Loss on deconsolidation of RBH	0.12		—		0.12		—	0.12		—	0.12
	Russia excise and VAT audit charge	—		—		—		0.20	0.20		—	0.20
	Fair value adjustment for equity security investments	—		—		—		—	—		(0.02)	(0.02)
	Tax items	—		(0.04)		(0.04)		—	(0.04)		—	(0.04)
	Adjusted Diluted EPS	$ 1.09		$ 1.46		$ 2.55		$ 1.43	$ 3.97		$ 1.22	$ 5.19
	Net earnings attributable to RBH	(0.06)	(1)	—		(0.06)	(1)	—	(0.06)	(1)	—	(0.06)		(1)
	Pro Forma Adjusted Diluted EPS	$ 1.03		$ 1.46		$ 2.49		$ 1.43	$ 3.91		$ 1.22	$ 5.13

	(1) Represents the impact of net earnings attributable to RBH from January 1, 2019 through March 21, 2019
	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 4
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions
($ in millions) / (Unaudited)

Net Revenues	Currency	Net Revenues excluding Currency	Acquisitions	Net Revenues excluding Currency & Acquisitions	Quarters Ended September 30,	Net Revenues	Total		Excluding Currency		Excluding Currency & Acquisitions

2020							Combustible Products				2019		% Change
$ 2,244	$ 32	$ 2,211	$ —	$ 2,211	European Union	$ 2,178	3.0	%	1.5	%	1.5	%
636	(45)	681	—	681	Eastern Europe	664	(4.2)	%	2.5	%	2.5	%
768	(27)	795	—	795	Middle East & Africa	1,064	(27.8)	%	(25.2)	%	(25.2)	%
1,071	3	1,068	—	1,068	South & Southeast Asia	1,246	(14.1)	%	(14.3)	%	(14.3)	%
605	6	598	—	598	East Asia & Australia	680	(11.0)	%	(12.0)	%	(12.0)	%
393	(44)	437	—	437	Latin America & Canada	466	(15.6)	%	(6.0)	%	(6.0)	%
$ 5,716	$ (74)	$ 5,791	$ —	$ 5,791	Total Combustible	$ 6,298	(9.2)	%	(8.0)	%	(8.0)	%

2020							Reduced-Risk Products				2019		% Change
$ 706	$ 8	$ 699	$ —	$ 699	European Union	$ 467	51.3	%	49.7	%	49.7	%
263	(21)	284	—	284	Eastern Europe	235	11.9	%	21.1	%	21.1	%
—	(1)	1	—	1	Middle East & Africa	63	-(100)%		(99.0)	%	(99.0)	%
—	—	—	—	—	South & Southeast Asia	—	—	%	—	%	—	%
753	12	742	—	742	East Asia & Australia	572	31.6	%	29.6	%	29.6	%
7	(1)	8	—	8	Latin America & Canada(1)	7	(6.1)	%	1.9	%	1.9	%
$ 1,730	$ (4)	$ 1,733	$ —	$ 1,733	Total RRPs	$ 1,344	28.6	%	28.9	%	28.9	%

2020							PMI				2019		% Change
$ 2,950	$ 40	$ 2,910	$ —	$ 2,910	European Union	$ 2,645	11.5	%	10.0	%	10.0	%
899	(66)	965	—	965	Eastern Europe	899	—	%	7.3	%	7.3	%
768	(28)	796	—	796	Middle East & Africa	1,127	(31.9)	%	(29.4)	%	(29.4)	%
1,071	3	1,068	—	1,068	South & Southeast Asia	1,246	(14.0)	%	(14.3)	%	(14.3)	%
1,358	18	1,340	—	1,340	East Asia & Australia	1,252	8.5	%	7.0	%	7.0	%
400	(45)	445	—	445	Latin America & Canada	473	(15.4)	%	(5.9)	%	(5.9)	%
$ 7,446	$ (78)	$ 7,524	$ —	$ 7,524	Total PMI	$ 7,642	(2.6)	%	(1.5)	%	(1.5)	%

(1) Net Revenues include revenues from shipments of Platform 1 devices, heated tobacco units and accessories to Altria Group, Inc., commencing in the third quarter of 2019, for sale under license in the United States
Note: Sum of product categories or Regions might not foot to Total PMI due to roundings. “-“ indicates amounts between -$0.5 million and +$0.5 million


									Schedule 5
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions
($ in millions) / (Unaudited)

Net Revenues	Currency	Net Revenues excluding Currency	Acquisitions	Net Revenues excluding Currency & Acquisitions	Nine Months Ended September 30,	Net Revenues	Total		Excluding Currency		Excluding Currency & Acquisitions

2020							Combustible Products				2019		% Change
$ 6,099	$ (96)	$ 6,195	$ —	$ 6,195	European Union	$ 6,139	(0.7)	%	0.9	%	0.9	%
1,681	(100)	1,782	—	1,782	Eastern Europe	1,774	(5.3)	%	0.4	%	0.4	%
2,296	(46)	2,342	—	2,342	Middle East & Africa	2,810	(18.3)	%	(16.7)	%	(16.7)	%
3,211	(24)	3,235	—	3,235	South & Southeast Asia	3,607	(11.0)	%	(10.3)	%	(10.3)	%
1,876	(16)	1,892	—	1,892	East Asia & Australia	2,074	(9.5)	%	(8.7)	%	(8.7)	%
1,196	(119)	1,315	—	1,315	Latin America & Canada	1,634	(26.8)	%	(19.5)	%	(19.5)	%
$ 16,360	$ (401)	$ 16,761	$ —	$ 16,761	Total Combustible	$ 18,039	(9.3)	%	(7.1)	%	(7.1)	%

2020							Reduced-Risk Products				2019		% Change
$ 1,861	$ (34)	$ 1,895	$ —	$ 1,895	European Union	$ 1,242	49.9	%	52.6	%	52.6	%
789	(45)	833	—	833	Eastern Europe	526	50.1	%	58.6	%	58.6	%
52	—	52	—	52	Middle East & Africa	248	(79.2)	%	(79.0)	%	(79.0)	%
—	—	—	—	—	South & Southeast Asia	—	—	%	—	%	—	%
2,169	13	2,156	—	2,156	East Asia & Australia	2,020	7.3	%	6.7	%	6.7	%
20	(2)	22	—	22	Latin America & Canada(1)	18	12.0	%	20.6	%	20.6	%
$ 4,890	$ (68)	$ 4,958	$ —	$ 4,958	Total RRPs	$ 4,053	20.6	%	22.3	%	22.3	%

2020							PMI				2019		% Change
$ 7,960	$ (130)	$ 8,090	$ —	$ 8,090	European Union	$ 7,381	7.8	%	9.6	%	9.6	%
2,470	(145)	2,615	—	2,615	Eastern Europe	2,300	7.4	%	13.7	%	13.7	%
2,348	(46)	2,394	—	2,394	Middle East & Africa	3,058	(23.2)	%	(21.7)	%	(21.7)	%
3,211	(24)	3,235	—	3,235	South & Southeast Asia	3,607	(11.0)	%	(10.3)	%	(10.3)	%
4,045	(3)	4,048	—	4,048	East Asia & Australia	4,094	(1.2)	%	(1.1)	%	(1.1)	%
1,216	(121)	1,337	—	1,337	Latin America & Canada	1,652	(26.4)	%	(19.1)	%	(19.1)	%
$ 21,250	$ (469)	$ 21,719	$ —	$ 21,719	Total PMI	$ 22,092	(3.8)	%	(1.7)	%	(1.7)	%

(1) Net Revenues include revenues from shipments of Platform 1 devices, heated tobacco units and accessories to Altria Group, Inc., commencing in the third quarter of 2019, for sale under license in the United States
Note: Sum of product categories or Regions might not foot to Total PMI due to roundings. “-“ indicates amounts between -$0.5 million and +$0.5 million


												Schedule 6
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Adjustments of Operating Income for the Impact of Currency and Acquisitions
($ in millions) / (Unaudited)

Operating Income			Currency	Operating Income excluding Currency	Acquisitions	Operating Income excluding Currency & Acquisitions			Operating Income (Loss)					Total		Excluding Currency	Excluding Currency & Acquisitions

2020										Quarters Ended September 30,				2019				% Change
$ 1,588		$ 23	$ 1,565	$ —	$ 1,565		European Union	$ 1,255		26.5	%	24.7	%	24.7	%
245		(105)	350	—	350		Eastern Europe	(101)	(1)	+100%		+100%		+100%
261		(15)	276	—	276		Middle East & Africa	519		(49.7)	%	(46.8)	%	(46.8)	%
402		(3)	405	—	405		South & Southeast Asia	539		(25.4)	%	(24.9)	%	(24.9)	%
637		17	620	—	620		East Asia & Australia	451		41.2	%	37.5	%	37.5	%
110		(44)	154	—	154		Latin America & Canada	125	(2)	(12.0)	%	23.2	%	23.2	%
$ 3,243		$ (127)	$ 3,370	$ —	$ 3,370		Total PMI	$ 2,788		16.3	%	20.9	%	20.9	%

2020										Nine Months Ended September 30,				2019				% Change
$ 3,924	(3)	$ (107)	$ 4,031	$ —	$ 4,031		European Union	$ 3,346		17.3	%	20.5	%	20.5	%
610	(3)	(208)	818	—	818		Eastern Europe	284	(1)	+100%		+100%		+100%
819	(3)	(29)	848	—	848		Middle East & Africa	1,304		(37.2)	%	(35.0)	%	(35.0)	%
1,290	(3)	—	1,290	—	1,290		South & Southeast Asia	1,471	(4)	(12.3)	%	(12.3)	%	(12.3)	%
1,792	(3)	2	1,790	—	1,790		East Asia & Australia	1,520		17.9	%	17.8	%	17.8	%
328	(3)	(85)	413	—	413		Latin America & Canada	100	(5)	+100%		+100%		+100%
$ 8,763		$ (427)	$ 9,190	$ —	$ 9,190		Total PMI	$ 8,025		9.2	%	14.5	%	14.5	%

(1) Includes the Russia excise and VAT audit charge ($374 million)
(2) Includes asset impairment and exit costs ($22 million)
(3) Includes asset impairment and exit costs ($71 million): EU ($27 million), EE ($7 million), ME&A ($9 million), S&SA ($11 million), EA&A ($13 million) and LA&C ($4 million)
(4) Includes asset impairment and exit costs ($20 million)
(5) Includes asset impairment and exit costs ($45 million), the Canadian tobacco litigation-related expense ($194 million) and the loss on deconsolidation of RBH ($239 million)


																Schedule 7
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	Asset Impairment & Exit Costs		Adjusted Operating Income	Currency	Adjusted Operating Income excluding Currency	Acqui-sitions	Adjusted Operating Income excluding Currency & Acqui-sitions			Operating Income (Loss)	Asset Impairment & Exit Costs and Others			Adjusted Operating Income				Total		Excluding Currency	Excluding Currency & Acqui-sitions

2020													Quarters Ended September 30,								2019	% Change
$ 1,588	$ —	$ 1,588	$ 23	$ 1,565	$ —	$ 1,565		European Union	$ 1,255	$ —		$ 1,255		26.5	%	24.7	%	24.7	%
245	—	245	(105)	350	—	350		Eastern Europe	(101)	(374)	(1)	273		(10.3)	%	28.2	%	28.2	%
261	—	261	(15)	276	—	276		Middle East & Africa	519	—		519		(49.7)	%	(46.8)	%	(46.8)	%
402	—	402	(3)	405	—	405		South & Southeast Asia	539	—		539		(25.4)	%	(24.9)	%	(24.9)	%
637	—	637	17	620	—	620		East Asia & Australia	451	—		451		41.2	%	37.5	%	37.5	%
110	—	110	(44)	154	—	154		Latin America & Canada	125	(22)	(2)	147		(25.2)	%	4.8	%	4.8	%
$ 3,243	$ —	$ 3,243	$ (127)	$ 3,370	$ —	$ 3,370		Total PMI	$ 2,788	$ (396)		$ 3,184		1.9	%	5.8	%	5.8	%

2020													Nine Months Ended September 30,								2019	% Change
$ 3,924	$ (27)	$ 3,951	$ (107)	$ 4,058	$ —	$ 4,058		European Union	$ 3,346	$ —		$ 3,346		18.1	%	21.3	%	21.3	%
610	(7)	617	(208)	825	—	825		Eastern Europe	284	(374)	(1)	658		(6.2)	%	25.4	%	25.4	%
819	(9)	828	(29)	857	—	857		Middle East & Africa	1,304	—		1,304		(36.5)	%	(34.3)	%	(34.3)	%
1,290	(11)	1,301	—	1,301	—	1,301		South & Southeast Asia	1,471	(20)	(2)	1,491		(12.7)	%	(12.7)	%	(12.7)	%
1,792	(13)	1,805	2	1,803	—	1,803		East Asia & Australia	1,520	—		1,520		18.8	%	18.6	%	18.6	%
328	(4)	332	(85)	417	—	417		Latin America & Canada	100	(478)	(3)	578		(42.6)	%	(27.9)	%	(27.9)	%
$ 8,763	$ (71)	$ 8,834	$ (427)	$ 9,261	$ —	$ 9,261		Total PMI	$ 8,025	$ (872)		$ 8,897		(0.7)	%	4.1	%	4.1	%

(1) Represents the Russia excise and VAT audit charge
(2) Represents asset impairment and exit costs
(3) Includes asset impairment and exit costs ($45 million), the Canadian tobacco litigation-related expense ($194 million) and the loss on deconsolidation of RBH ($239 million)


																		Schedule 8
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Adjusted Operating Income Margin, excluding Currency and Acquisitions
($ in millions) / (Unaudited)

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

2020																				Quarters Ended September 30,	2019	% Points Change
$ 1,588	$ 2,950	53.8	%	$ 1,565	$ 2,910	53.8	%	$ 1,565	$ 2,910	53.8	%	European Union	$ 1,255	$ 2,645	47.4	%	6.4	6.4	6.4
245	899	27.3	%	350	965	36.3	%	350	965	36.3	%	Eastern Europe	273	899	30.4	%	(3.1)	5.9	5.9
261	768	34.0	%	276	796	34.7	%	276	796	34.7	%	Middle East & Africa	519	1,127	46.1	%	(12.1)	(11.4)	(11.4)
402	1,071	37.5	%	405	1,068	37.9	%	405	1,068	37.9	%	South & Southeast Asia	539	1,246	43.3	%	(5.8)	(5.4)	(5.4)
637	1,358	46.9	%	620	1,340	46.3	%	620	1,340	46.3	%	East Asia & Australia	451	1,252	36.0	%	10.9	10.3	10.3
110	400	27.5	%	154	445	34.6	%	154	445	34.6	%	Latin America & Canada	147	473	31.1	%	(3.6)	3.5	3.5
$ 3,243	$ 7,446	43.6	%	$ 3,370	$ 7,524	44.8	%	$ 3,370	$ 7,524	44.8	%	Total PMI	$ 3,184	$ 7,642	41.7	%	1.9	3.1	3.1

2020																				Nine Months Ended September 30,	2019	% Points Change
$ 3,951	$ 7,960	49.6	%	$ 4,058	$ 8,090	50.2	%	$ 4,058	$ 8,090	50.2	%	European Union	$ 3,346	$ 7,381	45.3	%	4.3	4.9	4.9
617	2,470	25.0	%	825	2,615	31.5	%	825	2,615	31.5	%	Eastern Europe	658	2,300	28.6	%	(3.6)	2.9	2.9
828	2,348	35.3	%	857	2,394	35.8	%	857	2,394	35.8	%	Middle East & Africa	1,304	3,058	42.6	%	(7.3)	(6.8)	(6.8)
1,301	3,211	40.5	%	1,301	3,235	40.2	%	1,301	3,235	40.2	%	South & Southeast Asia	1,491	3,607	41.3	%	(0.8)	(1.1)	(1.1)
1,805	4,045	44.6	%	1,803	4,048	44.5	%	1,803	4,048	44.5	%	East Asia & Australia	1,520	4,094	37.1	%	7.5	7.4	7.4
332	1,216	27.3	%	417	1,337	31.2	%	417	1,337	31.2	%	Latin America & Canada	578	1,652	35.0	%	(7.7)	(3.8)	(3.8)
$ 8,834	$ 21,250	41.6	%	$ 9,261	$ 21,719	42.6	%	$ 9,261	$ 21,719	42.6	%	Total PMI	$ 8,897	$ 22,092	40.3	%	1.3	2.3	2.3

(1) For the calculation of Adjusted Operating Income and Adjusted Operating Income excluding currency and acquisitions refer to Schedule 7
(2) For the calculation of Net Revenues excluding currency and acquisitions refer to Schedules 4 and 5


														Schedule 9
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Adjustments for the Impact of RBH, excluding Currency
($ in millions, except per share data) / (Unaudited)

		Quarters Ended September 30,												Nine Months Ended September 30,
		2020				2019			% Change		2020					2019	% Change
	Net Revenues	$ 7,446		$ 7,642			(2.6)	%	$ 21,250		$ 22,092			(3.8)	%
	Net Revenues attributable to RBH			—							(181)		(1)
	Net Revenues	$ 7,446		$ 7,642			(2.6)	%	$ 21,250		$ 21,911		(2)	(3.0)	%
	Less: Currency	(78)							(470)
	Net Revenues, ex. currency	$ 7,524		$ 7,642			(1.5)	%	$ 21,720		$ 21,911		(2)	(0.9)	%







	Adjusted Operating Income (3)	$ 3,243		$ 3,184			1.9	%	$ 8,834		$ 8,897			(0.7)	%
	Operating Income attributable to RBH			—							(126)		(1)
	Adjusted Operating Income	$ 3,243		$ 3,184			1.9	%	$ 8,834		$ 8,771		(2)	0.7	%
	Less: Currency	(127)							(426)
	Adjusted Operating Income, ex. currency	$ 3,370		$ 3,184			5.8	%	$ 9,260		$ 8,771		(2)	5.6	%

	Adjusted OI Margin	43.6	%	41.7	%		1.9		41.6	%	40.3	%		1.3
	Adjusted OI Margin attributable to RBH			—							(0.3)		(1)
	Adjusted OI Margin	43.6	%	41.7	%		1.9		41.6	%	40.0	%	(2)	1.6
	Less: Currency	(1.2)							(1.0)
	Adjusted OI Margin, ex. currency	44.8	%	41.7	%		3.1		42.6	%	40.0	%	(2)	2.6

	Adjusted Diluted EPS (4)	$ 1.42		$ 1.43			(0.7)	%	$ 3.92		$ 3.97			(1.3)	%
	Net earnings attributable to RBH			—							(0.06)		(1)
	Adjusted Diluted EPS	$ 1.42		$ 1.43			(0.7)	%	$ 3.92		$ 3.91		(2)	0.3	%
	Less: Currency	(0.09)							(0.28)
	Adjusted Diluted EPS, ex. currency	$ 1.51		$ 1.43			5.6	%	$ 4.20		$ 3.91		(2)	7.4	%

	(1) Represents the impact attributable to RBH from January 1, 2019 through March 21, 2019
	(2) Pro forma
	(3) For the calculation of Adjusted Operating Income, see Schedule 7
	(4) For the calculation, see Schedule 2
	Note: Financials attributable to RBH include Duty Free sales in Canada


														Schedule 10
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Adjustments for the Impact of RBH, excluding Currency
($ in millions) / (Unaudited)

	Latin America & Canada	Quarters Ended September 30,												Nine Months Ended September 30,
		2020				2019			% Change		2020					2019	% Change
	Net Revenues	$ 400		$ 473			(15.4)	%	$ 1,216		$ 1,652			(26.4)	%
	Net Revenues attributable to RBH			—							(179)		(1)
	Net Revenues	$ 400		$ 473			(15.4)	%	$ 1,216		$ 1,473		(2)	(17.4)	%
	Less: Currency	(45)							(122)
	Net Revenues, ex. currency	$ 445		$ 473			(5.9)	%	$ 1,338		$ 1,473		(2)	(9.2)	%

	Operating Income	$ 110		$ 125			(12.0)	%	$ 328		$ 100			+100%
	Less:
	Asset impairment and exit costs	—		(22)					(4)		(45)
	Canadian tobacco litigation-related expense	—		—					—		(194)
	Loss on deconsolidation of RBH	—		—					—		(239)
	Adjusted Operating Income	$ 110		$ 147			(25.2)	%	$ 332		$ 578			(42.6)	%
	Operating Income attributable to RBH			—							(125)		(1)
	Adjusted Operating Income	$ 110		$ 147			(25.2)	%	$ 332		$ 453		(2)	(26.7)	%
	Less: Currency	(44)							(83)
	Adjusted Operating Income, ex. currency	$ 154		$ 147			4.8	%	$ 415		$ 453		(2)	(8.4)	%

	Adjusted OI Margin	27.5	%	31.1	%		(3.6)		27.3	%	35.0	%		(7.7)
	Adjusted OI Margin attributable to RBH			—							(4.2)		(1)
	Adjusted OI Margin	27.5	%	31.1	%		(3.6)		27.3	%	30.8	%	(2)	(3.5)
	Less: Currency	(7.1)							(3.7)
	Adjusted OI Margin, ex. currency	34.6	%	31.1	%		3.5		31.0	%	30.8	%	(2)	0.2

	(1) Represents the impact attributable to RBH from January 1, 2019 through March 21, 2019
	(2) Pro forma


							Schedule 11
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Condensed Statements of Earnings
($ in millions, except per share data) / (Unaudited)

Quarters Ended September 30,							Nine Months Ended September 30,
2020	2019	Change Fav./(Unfav.)			2020	2019	Change Fav./(Unfav.)
$ 20,444	$ 20,380	0.3	%	Revenues including Excise Taxes	$ 56,516	$ 58,072	(2.7)	%
12,998	12,738	(2.0)	%	Excise Taxes on products	35,266	35,980	2.0	%
7,446	7,642	(2.6)	%	Net Revenues	21,250	22,092	(3.8)	%
2,416	2,605	7.3	%	Cost of sales	6,997	7,735	9.5	%
5,030	5,037	(0.1)	%	Gross profit	14,253	14,357	(0.7)	%
1,769	2,234	20.8	%	Marketing, administration and research costs (1)	5,435	6,282	13.5	%
18	15			Amortization of intangibles	55	50
3,243	2,788	16.3	%	Operating Income	8,763	8,025	9.2	%
163	132	(23.5)	%	Interest expense, net	454	434	(4.6)	%
23	20	(15.0)	%	Pension and other employee benefit costs	68	61	(11.5)	%
3,057	2,636	16.0	%	Earnings before income taxes	8,241	7,530	9.4	%
640	635	(0.8)	%	Provision for income taxes	1,764	1,670	(5.6)	%
(20)	(45)			Equity investments and securities (income)/loss, net	4	(86)
2,437	2,046	19.1	%	Net Earnings	6,473	5,946	8.9	%
130	150			Net Earnings attributable to noncontrolling interests	393	377
$ 2,307	$ 1,896	21.7	%	Net Earnings attributable to PMI	$ 6,080	$ 5,569	9.2	%

				Per share data (2):
$ 1.48	$ 1.22	21.3	%	Basic Earnings Per Share	$ 3.90	$ 3.57	9.2	%
$ 1.48	$ 1.22	21.3	%	Diluted Earnings Per Share	$ 3.90	$ 3.57	9.2	%

(1) Nine months ended September 30, 2020 includes asset impairment and exit costs ($71 million). Nine months ended September 30, 2019 includes asset impairment and exit costs ($65 million), the Canadian tobacco litigation-related expense ($194 million), the loss on deconsolidation of RBH ($239 million) and the Russia excise and VAT audit charge ($374 million). Quarter ended September 30, 2019 includes asset impairment and exit costs ($22 million) and the Russia excise and VAT audit charge ($374 million)
(2) Net Earnings and weighted-average shares used in the basic and diluted Earnings Per Share computations for the quarters and for the nine months ended September 30, 2020 and 2019 are shown on Schedule 1, Footnote 1


				Schedule 12
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Condensed Balance Sheets
($ in millions, except ratios) / (Unaudited)

	September 30,				December 31,
	2020				2019
Assets
Cash and cash equivalents		$	4,821		$	6,861
All other current assets		12,632			13,653
Property, plant and equipment, net		6,134			6,631
Goodwill		5,647			5,858
Other intangible assets, net		1,926			2,113
Investments in unconsolidated subsidiaries and equity securities		4,579			4,635
Other assets		3,390			3,124
Total assets		$	39,129		$	42,875

Liabilities and Stockholders' (Deficit) Equity
Short-term borrowings		$	152		$	338
Current portion of long-term debt		1,992			4,051
All other current liabilities		13,381			14,444
Long-term debt		27,346			26,656
Deferred income taxes		661			908
Other long-term liabilities		5,842			6,077
Total liabilities		49,374			52,474

Total PMI stockholders' deficit		(12,092)			(11,577)
Noncontrolling interests		1,847			1,978
Total stockholders' (deficit) equity		(10,245)			(9,599)
Total liabilities and stockholders' (deficit) equity		$	39,129		$	42,875


										Schedule 13
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 September 30, 2020												Year Ended December 31, 2019
	October ~ December			January ~ September					12 months
	2019			2020					rolling
Net Earnings		$	1,782	$	6,473		$	8,255			$	7,728
Equity investments and securities (income)/loss, net		(63)		4			(59)				(149)
Provision for income taxes		623		1,764			2,387				2,293
Interest expense, net		136		454			590				570
Depreciation and amortization		255		709			964				964
Asset impairment and exit costs and Others (1)		357		71			428				1,229
Adjusted EBITDA		$	3,090	$	9,475		$	12,565			$	12,635

						September 30,					December 31,
						2020					2019
Short-term borrowings							$	152			$	338
Current portion of long-term debt							1,992				4,051
Long-term debt							27,346				26,656
Total Debt							$	29,490			$	31,045
Cash and cash equivalents							4,821				6,861
Net Debt							$	24,669			$	24,184

Ratios:
Total Debt to Adjusted EBITDA							2.35				2.46
Net Debt to Adjusted EBITDA							1.96				1.91

(1) For the year ended December 31, 2019, Others include the Canadian tobacco litigation-related expense ($194 million), the loss on deconsolidation of RBH ($239 million) and the Russia excise and VAT audit charge ($374 million)


							Schedule 14
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Operating Cash Flow to Operating Cash Flow, excluding Currency
($ in millions) / (Unaudited)

Quarters Ended September 30,							Nine Months Ended September 30,
2020	2019	% Change			2020	2019	% Change
$ 3,614	$ 2,083	73.5	%	Net cash provided by operating activities (1)	$ 6,650	$ 6,766	(1.7)	%
(91)				Less: Currency	(339)
$ 3,705	$ 2,083	77.9	%	Net cash provided by operating activities, excluding currency	$ 6,989	$ 6,766	3.3	%

(1) Operating cash flow

Exhibit 99.2

Philip Morris International Inc.

2020 Third-Quarter Conference Call

October 20, 2020

NICK ROLLI

(SLIDE 1.)

Welcome. Thank you for joining us. Earlier today, we issued a press release containing detailed information on our 2020 third-quarter results. You may access the release on www.pmi.com or the PMI Investor Relations App.

(SLIDE 2.)

A glossary of terms, including the definition for reduced-risk products, or "RRPs," as well as adjustments, other calculations and reconciliations to the most directly comparable U.S. GAAP measures and additional heated tobacco unit market data are at the end of today’s webcast slides, which are posted on our website. Unless otherwise stated, all references to IQOS are to our IQOS heat-not-burn products.

Comparisons presented on a "like-for-like" basis reflect pro forma 2019 results, which have been adjusted for the deconsolidation of our Canadian subsidiary, Rothmans, Benson & Hedges, Inc. (RBH), effective March 22, 2019. Please also note that growth rates presented on an organic basis for consolidated financial results reflect currency-neutral underlying results and "like-for-like" comparisons, where applicable.

(SLIDE 3.)

Today’s remarks contain forward-looking statements and projections of future results. I direct your attention to the Forward-Looking and Cautionary Statements disclosure in today’s presentation and press release for a review of the various factors that could cause actual results to differ materially from projections or forward-looking statements.

(SLIDE 4.)

Please also note the additional Forward-Looking and Cautionary Statements related to COVID-19.

It’s now my pleasure to introduce Emmanuel Babeau, our Chief Financial Officer.

Emmanuel.

EMMANUEL BABEAU

(SLIDE 5.)

Thank you, Nick, and welcome, ladies and gentlemen. I hope everyone listening to the call, and those close to you, are safe and well.

Our business delivered an even better than expected performance in the third quarter despite the ongoing circumstances of the pandemic.

Most importantly, the excellent momentum of IQOS continues. HTU volumes have grown 28% year-to-date, with a positive mix effect on our net revenues, where RRPs again made up almost one quarter of our business in Q3. IQOS user acquisition outpaced the prior year quarter to reach an estimated total of 16.4 million users at the end of September.

While still below pre-pandemic levels in most places, our combustible business recorded an improved sequential performance. Underlying industry volumes were better across both developed and emerging markets, reflecting increased consumption occasions. This was notably the case in markets with a significant proportion of daily wage workers, like Indonesia, Mexico and the Philippines. Despite these better industry volumes, Indonesia remains challenging, together with Duty Free. We must also retain a degree of caution around a second wave of the pandemic and its overall economic consequences across all of our markets.

Our operating margins were again significantly ahead in the quarter and on a year-to-date basis, despite the challenges in our Duty-Free business. This reflects the increasing weight and profitability of RRPs, and cost efficiencies.

Our cash generation was also strong with $3.6 billion of operating cash flow in the quarter putting us on track to reach our target of at least $9 billion this year.

(SLIDE 6.)

Turning to the headline numbers, our Q3 net revenues declined by 1.5% on an organic basis, marking a significant improvement from the decline of almost 10% in Q2. While this was somewhat aided by certain timing factors, including the revaluation of distributor inventories in Japan ahead of the October price increase, it nonetheless reflects the continued strength of IQOS combined with a sequential improvement in our combustible business.

Indeed, the positive effect of the shift in our sales mix towards RRPs can be seen in the 6.5% organic increase in net revenue per unit.

Combustible tobacco pricing was 2.1%, reflecting solid pricing in a number of markets, partially offset by timing differences with the prior year, a strong prior year comparison in Turkey and headwinds in Indonesia. These timing differences include the effect of delayed pricing in some instances, such as

the Philippines where we took a price increase this month rather than August in 2019.

Given this net revenue decline, we were pleased to deliver such a strong adjusted operating income margin expansion of over 300 basis points, on an organic basis. I will cover this in more detail shortly, noting that we saw a further benefit versus our prior expectations from additional cost efficiencies and some delayed spending in the last month of the quarter.

Adjusted diluted EPS of $1.42 increased by 5.6% excluding currency, better than our prior expectation of a flat organic development. The primary driver was the above cost benefit as well as better industry volumes in Indonesia and the EU Region, where increased mobility coincided with the reopening of hospitality settings and warm weather.

(SLIDE 7.)

I also want to reflect on our strong performance over the first nine months of the year. This was clearly a challenging period, with disruption to many aspects of our operations, including our supply chain and route-to-market.

Our net revenues declined by only 0.9% on an organic basis, an exceptionally resilient performance given these unprecedented headwinds. We estimate that Duty Free and Indonesia alone were a mid-single digit drag on our top line growth. Despite these factors, we saw very good organic progression in our net revenue per unit from the increasing weight of RRPs, and solid pricing in combustibles. Our adjusted operating income margin increased by 260 basis points to deliver 7.4% adjusted diluted EPS growth, all on an organic basis.

(SLIDE 8.)

Let me now go into the drivers of our Q3 margin expansion in more detail, starting with gross margin, which expanded by 180 basis points on an organic basis. This is driven by multiple levers. First, our ongoing transformation is delivering an increasing mix of RRPs in our business. Second is pricing on combustibles.Third, is our focus on overall manufacturing productivity where our focus on efficiency, quality and footprint more than offset the impact of lower combustible volumes.

(SLIDE 9.)

The positive gross margin development was augmented by our focus on SG&A efficiencies, with our total marketing, administration and research costs 140 basis points lower as a percentage of net revenues, on an organic basis. This reflects the ongoing digitalization and simplification of our business processes, including our RRP commercial engine, and more efficient ways of working. There was also a benefit from the timing of certain costs, as I already mentioned.

(SLIDE 10.)

Despite the challenges of 2020, we are today raising our expected full-year adjusted diluted EPS range to between $5.05 and $5.10, reflecting around 5% to 6% organic growth. This excludes an assumed unfavorable currency impact, at prevailing exchange rates, of 32 cents.

As stated in our earnings release, we have also updated certain guidance assumptions. We now expect a total industry decline of 7% to 8%, and a like-for-like decline in total PMI shipment volumes of 8% to 9%, both of which factor in the better Q3 development in the EU, and a smaller expected market decline in Indonesia.

We assume an organic expansion in our adjusted OI margin of around 200 basis points, also reflecting the above factors and ongoing cost efficiencies.

We expect capital expenditures of approximately $0.6 billion and an effective tax rate, excluding discrete items, of 22% to 23%. We also assume no recurrence of national lockdowns in our key international markets in the fourth quarter and remain vigilant with regard to the pandemic, as economic uncertainty remains and localized social restrictions are being tightened in some geographies.

(SLIDE 11.)

Focusing on the fourth quarter, we assume underlying consumption trends should be broadly stable versus a robust Q3. In many markets, including the EU Region and Russia, increased consumer mobility, the opening of hospitality settings, and summer conditions provided a helpful backdrop to our performance.

However, there remains continued pandemic-related uncertainty as we now see localized restrictions tightening in certain countries; with potential impacts on both mobility and economic vitality.

The delay of certain SG&A costs from Q3 will also have an impact on our fourth quarter results. In addition, it's worth noting that while the price increases in Japan took effect on the 1st of October, the majority of the impact this year was realized in the third quarter through the revaluation of distributor inventories.

I should remind you that Q4, 2019 presents a strong base of comparison. This is notably due to pricing in Indonesia ahead of the January 2020 excise tax increase and an exceptional share gain in Saudi Arabia due to market disruption ahead of new plain packaging requirements.

As such, while we expect around 5% to 6% organic EPS growth for the year, we expect the organic progression to be flat to modestly negative in the fourth quarter, excluding 4 cents of estimated unfavorable currency.

(SLIDE 12.)

I will now cover our third quarter performance in more detail. As with net revenues, our combustible shipment volumes sequentially improved, albeit the year-over-year decline remains greater than historic averages. This was supported by better industry trends in all Regions. Conversely, our HTU shipment volumes continued to grow strongly to reach a record 19 billion units -- driven by the EU Region, Japan and Russia.

I also want to touch on the year-on-year inventory movements in the quarter which negatively impacted our shipments on both cigarettes and HTUs vis-a-vis consumer offtake. The reversal of trade build-ups in H1 in markets like Germany and Russia was one contributing factor. Specifically for Japan, there were reductions in distributor inventories in Q3, following increases in both Q1 and Q2 of this year in anticipation of retail and consumer loading before the October tax-driven price increase. As such our shipments in the quarter were less than our in-market sales volumes.

Importantly, inventories for cigarettes and HTUs in Japan are now aligned to the expected market size following the price increase. The main positive impact of the price increase on our Q3 results was the revaluation of distributor inventories.

(SLIDE 13.)

This strong performance from IQOS means that heated tobacco units made up over 10% of our total shipment volume in the first nine months of the year, as compared to approximately 8% in 2019, and 5% in 2018. We continue to expect this proportion to grow over time as the positive momentum on RRPs continues, and remain well on track to achieve our target of 90-100 billion units in 2021.

(SLIDE 14.)

Our mission is to grow the RRP category globally and transform the mix of our business. With $4.9 billion in sales year-to-date, RRPs are now approaching one quarter of our total net revenues. Indeed, while this percentage was just over 23% in the quarter, if we were to adjust for inventory movements, Q3 would have almost reached 25%. IQOS devices accounted for approximately 8% of RRP net revenues year-to-date, mainly due to a naturally lower ratio of new users to existing users, longer replacement cycles and geographic mix, particularly in the third quarter. In some geographies we still sell a substantial amount of the lower-priced original IQOS 2.4+ device, and we have now introduced lil SOLID in Eastern Europe.

(SLIDE 15.)

The East Asia & Australia Region provides an illustration of RRPs operating at scale and is on track to deliver over half its revenues from RRPs this year.

While the investment phase of building commercial infrastructure can weigh on margins as scale is built, the strong margin expansion over recent years shows how powerful scale and experience in RRP can be, as investments start to pay back and the commercial approach is optimized.

(SLIDE 16.)

Focusing now on our total international market share, the developments were very positive for the bulk of our business. Before the impact of Duty Free cigarettes and Indonesia, our share increased by 0.4 points. This was driven by higher share for heated tobacco units, which increased by 0.8 points to reach 3.1%, only partly offset by lower share for cigarettes.

In markets where IQOS has a meaningful presence, our share increased with few exceptions. It follows that our combined market share increased in the EU Region, Japan and Russia.

(SLIDE 17.)

However, our total international market share was negatively impacted by Duty Free, where our share is higher than the PMI average, resulting in only partial recapture of volumes in other markets; and by Indonesia - which I will come back to separately.

It's also true that in many markets, Marlboro over-indexes to social consumption occasions, which are naturally lower during COVID-related restrictions. While the easing of measures is uneven across markets, we saw aggregate Marlboro share start to recover sequentially in the quarter.

(SLIDE 18.)

I turn now to Indonesia. While the challenges related to the excise tax structure remain, underlying consumer trends improved in the quarter. Industry volumes declined by 6% excluding trade inventory movements, a notable improvement from the 22% decline in Q2. This primarily reflects a recovery in daily consumption from depressed levels as confinements eased. Given the continued rise in COVID cases and the possibility of more localized restrictions, such as those temporarily introduced in Jakarta last month, we do not assume significant further improvement in the fourth quarter. However, reflecting the better third-quarter industry volumes and exit rate, we now expect the total industry decline on a shipment basis to be around 11% for the full year, versus 15% previously.

While a smaller industry decline has a commensurate effect on our volumes, our market share remains under pressure - despite improved performance from the higher margin A Mild, Dji Sam Soe Magnum and SKT brands. This is due to the same dynamics mentioned last quarter.

(SLIDE 19.)

Most notably, the growth of tax-advantaged 'below tier one' brands continues, as tax-driven pricing and the pandemic have increased downtrading. To illustrate this issue, the tax per stick on our tier one A Mild brand is more than 60% higher than on a comparable tier two kretek brand, with a similar resulting difference in the retail selling price.

With the segment now at 26% of the market, this represents a serious and growing threat to state excise revenues and a diminished return on this year's tax increase. The correction of volume-based tax tiers remains urgent. We are hopeful that the government will take steps over time to ensure more predictability in tax revenues and a level playing field by reforming the multi-tier excise structure.

The process of minimum selling price implementation also continues to progress slowly, hampered by the pandemic; full enforcement may not be complete until the end of the year, at the earliest.

(SLIDE 20.)

I move now to our RRP performance. We estimate that there were 16.4 million total IQOS users as of September 30. This represents the addition of around 1.1 million adult users since the end of the second quarter and over 4 million since the same time last year, with more users added in both Q3 and year-to-date than the corresponding periods in 2019. This is an exceptional achievement given the circumstances, where our accelerated pivot to digital and remote engagement is paying dividends.

We further estimate that 72% of this total -- or 11.7 million adult smokers -- have stopped smoking and switched to IQOS, with the balance in various stages of conversion.

This again reflects widespread user growth momentum across all key IQOS geographies, including Japan, the EU Region and Russia. As our user base expands in markets like Japan and Russia we are increasingly enriching our offer and segmenting the market with new products and more price points. We plan to bring more exciting innovation from IQOS in the coming quarters.

We are also optimistic that the FDA's granting of Modified Risk Tobacco Product reduced exposure orders for a version of IQOS will contribute over time to better understanding of the heated tobacco category, and the benefits of switching to IQOS compared to continued smoking.

(SLIDE 21.)

The success of IQOS in global key cities, where our commercial strategy typically has a strong initial focus, serves as a useful indicator for national share growth potential. In many such cities across a wide range of markets,

our share is now well into double-digits, and still growing. This provides an excellent base from which to further grow our RRP business as we innovate and broaden the IQOS offer.

(SLIDE 22.)

In the EU Region, we added a further 0.4 million IQOS users in the third quarter to reach 4.7 million, a continuation of recent strong performance. While most adult menthol smokers have switched to non-menthol cigarettes since the ban in May, we have seen some incremental switching to RRPs over the May-September period and continue to see further opportunities to convert these consumers.

Third-quarter share for HEETS reached 3.9% of total cigarette and HTU industry volume. This was in line with Q2, 2020 but sequentially increased by 0.1 point when adjusted for estimated retailer inventory movements and consumer pantry loading effects. Sequential IMS growth, also on an adjusted basis, was 16%. This reflects strong absolute growth in Italy and Poland. It also includes further progress in Spain and in the UK where both national and London offtake share continue to grow, with the latter exceeding 3% in September. I also refer you to the appendix where we show shares for key EU markets.

(SLIDE 23.)

IQOS continued its strong performance in Russia, with our HTU share up by 1.8 points to reach 5.8%. On a sequential basis versus the second quarter of 2020, share decreased by 0.2 points, reflecting a cigarette market which grew 6% on the same basis, aided by seasonality of consumption and lower illicit prevalence. Sequential HTU in-market sales, adjusted for trade inventory movements, increased by more than 9%. With the introduction of HEETS Creations in Q1, 2020 and Fiit consumables for lil SOLID this quarter, we now have a price-tiered portfolio to cater to a broader range of adult smokers across the socio-economic spectrum.

(SLIDE 24.)

In Japan, our total reported share for heated tobacco units reached 20.5% in the third quarter, supported by line extensions for both Marlboro HeatSticks and HEETS such as the recent launch of Marlboro Black Menthol. IQOS users grew to an estimated total of 6.0 million, of which an estimated 4.4 million have stopped smoking and switched to IQOS.

On a total tobacco basis including cigarillos and adjusted for trade inventory movements, the share for our HTU brands increased by 2.6 points versus the prior year quarter, and by 0.2 points sequentially, to 18.9%.

Q3, 2020 adjusted in-market sales volumes for our HTU brands grew 7.3% sequentially. The overall heated tobacco category continues to grow, with the large majority of this growth driven by IQOS, and now makes up almost 26% of the total tobacco market.

(SLIDE 25.)

In addition to strong growth in existing markets, the geographic expansion of IQOS continues. We leveraged our digital capabilities to launch in 4 new emerging markets: Costa Rica, Georgia, Jordan and the Philippines. This takes the total number of markets where IQOS is available for sale to 61, of which over half are outside the OECD. The launch in the Philippines was initiated digitally before adding retail touchpoints and is focused on Metro Manila where consumer purchasing power is higher. While the geographic scope is limited, we are encouraged by progress so far.

(SLIDE 26.)

We have also now started the commercialization of IQOS VEEV, our new e-vapor product which was launched in New Zealand during the quarter. Initial adult consumer feedback is positive, and we plan to roll out to further markets in Q4 and 2021. The commercial infrastructure of IQOS will allow us to deploy efficiently and at scale. We place great importance on guarding against youth access for all our products. In this category in particular, we will be testing age verification technology in select markets.

(SLIDE 27.)

As part of our mission to build and accelerate the global RRP category, we aim to offer a choice of experiences, formats and price points to adult smokers and consumers of other nicotine products. Our collaboration with KT&G is consistent with this goal, as demonstrated by the first launches of lil products through our IQOS infrastructure.

We introduced the lil SOLID heat-not-burn device and Fiit HTUs in both Russia and Ukraine during the quarter. As we reach shares approaching 15-20% with IQOS in key cities such as Moscow and Kiev and we expand to areas with lower purchasing power, a simple, affordable proposition can play an important complementary role in reaching more adult consumers and maintaining a strong rate of user acquisition. Early results are encouraging with positive feedback from adult users. This means that in both these markets we now have HTU brands at three price points within the heat-not-burn category: super-premium HEETS Creations/Dimensions, premium HEETS and mid-priced Fiit, all of which present attractive margins.

(SLIDE 28.)

We will also shortly be launching the lil HYBRID device, Miix consumables and nicotine-free liquid cartridge in two Japanese prefectures, offering adult consumers a differentiated premium experience which combines the satisfaction and rich flavor of heated tobacco with added sensorial elements.

There is a consumer segment in Japan looking for such an experience, and we believe this will be the best hybrid product available in the market.

(SLIDE 29.)

I want to emphasize the deep alignment of our business with sustainability and ESG objectives, which sit at the core of our mission and strategy.

Our most important ESG issue is the health impact of our products. By innovating with significantly better alternatives, such as IQOS, we have a historic opportunity to substantially reduce this impact by switching adult smokers, who would otherwise continue to smoke, to reduced risk products. Through deploying RRPs at scale we can improve public health and contribute to the Sustainable Development Goals, especially Goal 3: 'Good Health & Well-Being'.

We also have best-in-class practices across a range of central ESG issues, where the other three of our four sustainability pillars are focused.

We believe this provides a unique combination, whereby sustainability is a true driver of innovation and growth. By embedding sustainability into the core of our business, we can create value for our shareholders, and society at large.

(SLIDE 30.)

To conclude, our Q3 results were stronger than expected, and we have raised our full-year guidance to reflect around 5% to 6% organic EPS growth.

We are building a business through RRPs to deliver superior and sustainable growth over the coming years. The continued momentum of IQOS through the challenges of the pandemic demonstrates these structural growth characteristics. We are also committed to maintaining the competitiveness of our combustible business.

We have a number of levers for growth in our top and bottom lines. First, the powerful mix effect of RRPs. Second, pricing, which will remain important for combustibles and, where appropriate, for RRPs. Additionally, efficiencies in our manufacturing and SG&A costs are further levers as we continue to hone our business model.

Moreover, with the launches of the IQOS VEEV and lil products we are broadening and stepping up our product offer and innovation in 2021. You can also expect us to bring further exciting innovation to our IQOS heat-not-burn platform.

As I just mentioned, sustainability and ESG are at the heart of our smoke-free strategy and we continue to work tirelessly to further our mission.

As we all know, there remains continued uncertainty regarding the pandemic, the impact of social restrictions, and their economic aftermath. However, when COVID-related headwinds abate we expect to resume growth consistent with the currency-neutral compound annual growth rates in our 2019-2021 algorithm of at least 5% net revenue growth and at least 8% adjusted diluted EPS growth on an organic basis.

In short we look forward with confidence, and we will expand on these topics further at our next Investor Day, which we plan to hold in early 2021.

(SLIDE 31.)

Thank you. I am now happy to answer your questions.

NICK ROLLI

That concludes our call today. Thank you for joining us. If you have any follow-up questions, please contact the Investor Relations team. Thank you again and have a nice day.

Exhibit 99.3 Delivering a Smoke-Free Future 2020 Third-Quarter Results October 20, 2020

Introduction • A glossary of key terms and definitions, including the definition for reduced-risk products, or "RRPs," additional heated tobacco unit market data, as well as adjustments, other calculations and reconciliations to the most directly comparable U.S. GAAP measures are at the end of today’s webcast slides, which are posted on our website • Unless otherwise stated, all references to IQOS are to our IQOS heat-not-burn products • Comparisons presented on a like-for-like basis reflect pro forma 2019 results, which have been adjusted for the deconsolidation of our Canadian subsidiary, Rothmans, Benson & Hedges, Inc. (RBH), effective March 22, 2019 • Growth rates presented on an organic basis for consolidated financial results reflect currency-neutral underlying results and "like-for-like" comparisons, where applicable 2

Forward-Looking and Cautionary Statements • This presentation and related discussion contain projections of future results and other forward-looking statements. 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; health concerns relating to the use of tobacco and other nicotine-containing products and exposure to environmental tobacco smoke; litigation related to tobacco use and intellectual property; intense competition; the effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; changes in adult smoker behavior; 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 and quality of tobacco and other agricultural products and raw materials; 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 produce and commercialize reduced-risk products or if regulation or taxation do not differentiate between such products and cigarettes; if it is unable to successfully introduce new products, promote brand equity, enter new markets or improve its margins through increased prices and productivity gains; if it is unable to expand its brand portfolio internally or through acquisitions and the development of strategic business relationships; or if it is unable to attract and retain the best global talent. Future results are also subject to the lower predictability of our reduced-risk product category's performance • PMI is further subject to other risks detailed from time to time in its publicly filed documents, including the Form 10-Q for the quarter ended June 30, 2020. 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 3

Forward-Looking and Cautionary Statements (COVID-19) • The COVID-19 pandemic has created significant societal and economic disruption, and resulted in closures of stores, factories and offices, and restrictions on manufacturing, distribution and travel, all of which will adversely impact our business, results of operations, cash flows and financial position during the continuation of the pandemic • Our business continuity plans and other safeguards in place may not be effective to mitigate the impact of the pandemic. Currently, significant risks include our diminished ability to convert adult smokers to our RRPs, significant volume declines in our duty-free business and certain other key markets, disruptions or delays in our manufacturing and supply chain, increased currency volatility, and delays in certain cost saving, transformation and restructuring initiatives. Our business could also be adversely impacted if key personnel or a significant number of employees or business partners become unavailable due to the COVID-19 outbreak. The significant adverse impact of COVID-19 on the economic or political conditions in markets in which we operate could result in changes to the preferences of our adult consumers and lower demand for our products, particularly for our mid-price or premium-price brands. Continuation of the pandemic could disrupt our access to the credit markets or increase our borrowing costs. Governments may temporarily be unable to focus on the development of science-based regulatory frameworks for the development and commercialization of RRPs or on the enforcement or implementation of regulations that are significant to our business. In addition, messaging about the potential negative impacts of the use of our products on COVID-19 risks may lead to increasingly restrictive regulatory measures on the sale and use of our products, negatively impact demand for our products, the willingness of adult consumers to switch to our RRPs and our efforts to advocate for the development of science-based regulatory frameworks for the development and commercialization of RRPs • The impact of these risks also depends on factors beyond our knowledge or control, including the duration and severity of the outbreak, its recurrence in our key markets, actions taken to contain its spread and to mitigate its public health effects, and the ultimate economic consequences thereof 4

Strong Performance in Q3 and YTD September, 2020 •Further robust growth from IQOS •Continued strong IQOS user acquisition to reach an estimated 16.4 million(a) •Sequential improvement in combustible volumes •Excellent margin expansion driven by RRP profitability and cost efficiencies •Strong cash generation (a) See Glossary for definition Source: PMI Financials or estimates, IQOS user panels and PMI Market Research 5

Q3, 2020: Improving Revenues, Strong Margins (Organic variance vs. PY) Net Revenues (1.5)% Net Revenue per Unit(a) 6.5% Combustible Tobacco Pricing % (as a percentage of PY combustible tobacco net revenues) 2.1 Adjusted OI Margin +310bps Adjusted Diluted EPS 5.6% (a) Reflects total PMI net revenues divided by total PMI cigarette and HTU shipment volume Source: PMI Financials or estimates 6

YTD September, 2020: Exceptional Resilience (Organic variance vs. PY) Net Revenues (0.9)% Net Revenue per Unit(a) 7.6% Combustible Tobacco Pricing % (as a percentage of PY combustible tobacco net revenues) 4.2 Adjusted OI Margin +260bps Adjusted Diluted EPS 7.4% (a) Reflects total PMI net revenues divided by total PMI cigarette and HTU shipment volume Source: PMI Financials or estimates 7

Q3, 2020: Multiple Levers Driving Higher Gross Margin 67.7% 67.6% (0.2)pp +0.5pp Currency Global +0.5pp Manufacturing (0.3)pp Productivity / Other Devices Combustible +1.1pp Pricing 65.9% HTU Mix Impact Q3, 2019 Q3, 2020 Q3, 2020 (Excluding Currency) Note: Sum of the drivers do not foot due to rounding Source: PMI Financials or estimates 8

Q3, 2020: Cost Efficiencies Support Margin Expansion Marketing, Admin. & Research Costs (as a % of net revenues) 24.1% 23.8% (1.4)pp +1.1pp 22.7% SG&A / Other Currency Q3, 2019 Q3, 2020 Q3, 2020 Note: Variances are vs. prior year as a percentage of net revenues. (Excluding Currency) Q3, 2019 excludes reporting adjustment of $396 million (refer to slide 46): asset impairment & exit costs ($22 million) and the Russia excise and VAT audit charge ($374 million) Source: PMI Financials or estimates 9

FY, 2020: ~5-6% Organic EPS Growth • Now expect around 5% to 6% adjusted diluted EPS growth, on an organic basis: Forecast range of $5.05 to $5.10, including a 32-cent currency headwind, at prevailing exchange rates ⎼ • Assumes: A total industry decline of 7% to 8% (vs. -7% to -9%, previously) Total like-for-like PMI shipment volume decline of 8% to 9% (vs. -8% to -10%, previously) ⎼ Around 200bps expansion in adjusted OI margin, on an organic basis (vs. >150bps, previously) ⎼ Approximately $0.6 billion in capital expenditures (vs. approx. $0.7 billion, previously) ⎼ An effective tax rate, excluding discrete items, of 22% to 23% (vs. approx. 22%, previously) ⎼ ⎼ Note: Growth rates presented on an organic basis for consolidated financial results reflect currency-neutral underlying results and "like-for-like" comparisons, where applicable Source: PMI Financials or estimates 10

Q4, 2020: Stable Underlying Trends • Underlying consumption trends assumed broadly stable, following robust Q3: Q3 helped by opening of hospitality settings and summer conditions in many markets Continued pandemic-related uncertainty, with tightening local restrictions in certain countries ⎼ ⎼ • Phasing of costs and Japan pricing effects from Q3 • Expect organic EPS growth to be flat to modestly negative vs. Q4, 2019: Estimated 4 cents of unfavorable currency at prevailing exchange rates ⎼ Source: PMI Financials or estimates 11

Total PMI Shipment Volume (billion units) Change In-Market 199.5 vs. PY Sales 16.0 Total 184.4 (7.6)% (5.8)% HTUs 19.0 18.7% 28.5% 183.5 Cigarettes 165.5 (9.8)% (8.8)% Q3, 2019 Q3, 2020 Source: PMI Financials or estimates 12

HTUs Now Comprise Over 10% of Our Total Volume (as a % of PMI Total Shipment Volume) 10.3% 7.8% 5.3% 4.5% 0.9% —% 2015 2016 2017 2018 2019 YTD Sept, 2020 0.4 7.4 36.2 41.4 59.7 54.4 PMI HTU Shipment Volume (billion units) Source: PMI Financials or estimates 13

Increasing Weight of RRPs Driven by Strong Growth (as a % of PMI Total Net Revenues) 23.0% 18.7% 13.8% 12.7% 2.7% —% 0.2% 2014 2015 2016 2017 2018 2019 YTD Sept, 2020 $0.1 $0.7 $3.6 $4.1 $5.6 $4.9 RRP Net Revenues ($ in billions) Source: PMI Financials or estimates 14

EA&A Region: Scale in RRPs Drives Profitability (RRP Net Revenues as a % of Total Net Revenues) 44.6% Adjusted 39.5% OI Margin 53.6% • EA&A Region on track to deliver >50% of net revenues from RRPs in 2020 • Strong margin progression testament 15.5% to the RRP business model at scale 2016 YTD Sept, 2020 $0.7 $2.2 RRP Net Revenues ($ in billions) Source: PMI Financials or estimates 15

PMI Total International Market Share HTUs (0.4)pp 29.3% +0.8pp (a) Cigarettes excluding 28.9% Duty Free and Indonesia Q3, 2019 Q3, 2020 (a) HTUs include a (0.1)pp impact of Duty Free HTUs Note: Excluding China and the U.S. Current view (reflecting the deconsolidation of RBH, PMI’s total market share has been restated for previous periods). Sales volume of PMI cigarettes and HTUs as a percentage of the total industry sales volume for cigarettes and HTUs Source: PMI Financials or estimates 16

PMI Total International Market Share HTUs (0.4)pp 29.3% +0.8pp (a) Cigarettes 28.9% excluding Duty Free (0.7)pp and Indonesia Indonesia (0.4)pp 28.2% Duty Free Cigarettes Q3, 2019 Q3, 2020 (a) HTUs include a (0.1)pp impact of Duty Free HTUs Note: Excluding China and the U.S. Current view (reflecting the deconsolidation of RBH, PMI’s total market share has been restated for previous periods). Sales volume of PMI cigarettes and HTUs as a percentage of the total industry sales volume for cigarettes and HTUs Source: PMI Financials or estimates 17

Indonesia: Better Industry Volume, Challenges Remain Change in Industry Volume (2020 vs. PY) (ex-inventory movements) Q1 Q2 Q3 (6.8)% (6.1)% (22.1)% Source: PMI Financials or estimates 18

Significant Tax Gaps Drive Downtrading Industry Volume Share by Tax Tier Tier 1 Tier 2 (IDR/stick) A MILD 12s SKM 12s Retail Selling Price 1,500 900 Total Excise Tax 814 501 80% Tier 1 74% • Serious and growing threat to state excise tax revenues • We are hopeful steps will be taken over Below 26% time to reform tax tiers and level the Tier 1 20% playing field • Process of minimum retail price Q3, 2019 Q3, 2020 implementation is progressing slowly Note: Chart not to scale. SKM stands for machine-made kretek Source: PMI Financials or estimate 19

Over 16 Million IQOS Users (in millions) 16.4 Total IQOS Users(a) 15.3 Estimated users who are in various stages of conversion to IQOS(a) 14.3 Estimated users who have stopped 13.5 smoking and switched to IQOS(a) 12.3 11.2 10.4 9.6 8.8 67% 69% 70% 70% 71% 71% 73% 72% 72% 3.0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 2020 (a) See Glossary for definition Source: PMI Financials or estimates, IQOS user panels and PMI Market Research 20

Key Cities Provide Excellent Base for Growth PMI HTU Offtake Shares (Q3, 2020) Change vs. PY +6.1pp +3.2pp +6.5pp +2.9pp +2.0pp +2.4pp +1.0pp +4.5pp +4.1pp 29.1% 23.4% 18.2% 16.0% 14.7% 14.4% 14.1% 12.7% 11.5% Vilnius Tokyo(a) Kiev Prague Athens Moscow Bratislava Rome Warsaw +4.4pp +3.2pp +0.3pp +2.9pp +2.0pp +1.1pp +1.9pp +1.9pp +0.3pp 11.4% 10.9% 9.6% 8.8% 5.6% 5.4% 4.7% 2.9% 1.6% Kuala L. Lisbon Seoul Milan Munich Bucharest Zurich London Madrid (a) Japan total market includes the cigarillo category Note: Kuala L. is Kuala Lumpur Source: PMI Financials or estimates 21

EU Region: Continued HEETS Share Growth Adjusted 2.5% 4.0% SoM(a) 3.9% +1.5pp 2.4% Q3, 2019 Q3, 2020 Sequential Performance (vs. Q2, 2020) Adjusted SoM: +0.1pp(a) Adjusted IMS Volume: +15.7%(a) (a) Excluding the estimated impact of retailer inventory movements and consumer pantry loading Note: Sales volume of PMI HTUs as a percentage of the total industry sales volume for cigarettes and HTUs Source: PMI Financials or estimates 22

Russia: Continued PMI HTU Share Growth 5.8% +1.8pp 4.0% Q3, 2019 Q3, 2020 Sequential Performance (vs. Q2, 2020) Adjusted SoM: +0.1pp(a) Adjusted IMS Volume: +9.5%(a) (a) Excluding the impact of estimated trade inventory movements Note: Adjusted shares are equal to reported shares for Q3, 2019 and Q3, 2020 Source: PMI Financials or estimates 23

Japan: Continued PMI HTU Share Growth Adjusted Total 16.3% 18.9% Tobacco SoM(a) 20.5% +3.4pp 17.1% Q3, 2019 Q3, 2020 Sequential Performance (vs. Q2, 2020) Adjusted Total Tobacco SoM: +0.2pp(a) Adjusted IMS Volume: +7.3%(a) (a) Excluding the impact of estimated trade inventory movements, and including the cigarillo category Source: PMI Financials or estimates 24

Geographic Expansion of IQOS Continues 61 Markets Worldwide(a) Market Launches Of which 2015 (7) 2016 (13) 32 2017 (18) Non-OECD 2018 (6) 2019 (8) 2020 (9) (a) Status at October 1, 2020 Note: Reflects markets where IQOS is available in key cities or nationwide. Reflects date of initial geographic expansion beyond pilot launch city. The number of markets includes International Duty Free. While IQOS is currently available for sale in Mexico, the country recently banned the importation of e-cigarettes and devices that heat tobacco 25

IQOS VEEV Launch • New Zealand launch in August • Further markets in Q4 and 2021 • Leveraging IQOS commercial infrastructure • Testing age verification technology 26

lil SOLID Launched in Russia and Ukraine • Convenient, affordable proposition to reach more adult smokers • Encouraging early results with positive consumer feedback “Something new endorsed by IQOS. I’ll be one of the first owners in Russia” — Consumer testimonial Source: PMI Financials or estimates, and PMI Market Research 27

lil HYBRID Launch in Japan • Launching shortly in Japan • Innovative and differentiated heated tobacco experience • Further broadening range of consumer offer 28

ESG at the Core of Our Mission & Strategy • Innovating with significantly better reduced-risk products for public health, at scale: Important contribution to Sustainable Development Goals, notably ‘Good Health & Well-Being’ (SDG3) ⎼ • Best-in-class practices on the central ESG topics across our value chain: Protecting the environment Operating with excellence ⎼ Caring for the people we work with ⎼ ⎼ • Unique combination whereby sustainability is a driver of innovation and growth Note: Please refer to the PMI 2019 Integrated Report on our website for more information 29

Superior, Sustainable Growth Prospects • Strong Q3 performance; raising full-year guidance • Multiple growth drivers: Positive mix from RRPs Pricing ⎼ Manufacturing productivities ⎼ Cost efficiencies from digitalization and simplification ⎼ ⎼ • Product offer and innovation to step up in 2021 • ESG at the heart of our smoke-free strategy • Remain confident in mid-term growth prospects: When COVID-related headwinds abate, expect to resume growth consistent with targeted 2019-2021 CAGRs Note: 2019-2021⎼ targets first communicated at PMI Investor Day, on September 27, 2018 Source: PMI Financials or estimates (status on October 20, 2020) 30

Delivering a Smoke-Free Future 2020 Third-Quarter Results Questions & Answers Have you downloaded the PMI Investor Relations App yet? iOS Download Android Download The free IR App is available to download at the Apple App Store for iOS devices and at Google Play for Android mobile devices Or go to: www.pmi.com/irapp

Delivering a Smoke-Free Future 2020 Third-Quarter Results October 20, 2020

Glossary of Key Terms and Definitions, Appendix, and Reconciliation of Non-GAAP Measures 33

Glossary: General Terms • "PMI" refers to Philip Morris International Inc. and its subsidiaries • Until March 28, 2008, PMI was a wholly owned subsidiary of Altria Group, Inc. ("Altria"). Since that time the company has been independent and is listed on the New York Stock Exchange (ticker symbol "PM") • "RBH" refers to PMI’s Canadian subsidiary, Rothmans, Benson & Hedges Inc. • The Companies’ Creditors Arrangement Act (CCAA) is a Canadian federal law that permits a Canadian business to restructure its affairs while carrying on its business in the ordinary course • Trademarks are italicized • Comparisons are made to the same prior-year period unless otherwise stated • Unless otherwise stated, references to total industry, total market, PMI shipment volume and PMI market share performance reflect cigarettes and heated tobacco units • References to total international market, defined as worldwide cigarette and heated tobacco unit volume excluding the U.S., total industry, total market and market shares are PMI estimates for tax-paid products based on the latest available data from a number of internal and external sources and may, in defined instances, exclude the People's Republic of China and/or PMI's duty free business. In addition, to reflect the deconsolidation of PMI's Canadian subsidiary, Rothmans, Benson & Hedges, Inc. (RBH), effective March 22, 2019, PMI's total market share has been restated for previous periods • 2020 third-quarter and nine months year-to-date estimates for total industry volume and market share in certain geographies reflect limitations on the availability and accuracy of industry data during pandemic-related restrictions • "OTP" is defined as "other tobacco products," primarily roll-your-own and make-your-own cigarettes, pipe tobacco, cigars and cigarillos, and does not include reduced-risk products • "Combustible products" is the term PMI uses to refer to cigarettes and OTP, combined • In-market sales, or "IMS," is defined as sales to the retail channel, depending on the market and distribution model • "Total shipment volume" is defined as the combined total of cigarette shipment volume and heated tobacco unit shipment volume 34

Glossary: General Terms (cont.) • "EU" is defined as the European Union Region • "EE" is defined as the Eastern Europe Region • "ME&A" is defined as the Middle East & Africa Region and includes PMI's duty free business • "S&SA" is defined as the South & Southeast Asia Region • "EA&A" is defined as the East Asia & Australia Region • "LA&C" is defined as the Latin America & Canada Region • Following the deconsolidation of PMI's Canadian subsidiary, Rothmans, Benson & Hedges, Inc. (RBH), PMI will continue to report the volume of brands sold by RBH for which other PMI subsidiaries are the trademark owner. These include HEETS, Next, Philip Morris and Rooftop • From time to time, PMI’s shipment volumes are subject to the impact of distributor inventory movements, and estimated total industry/market volumes are subject to the impact of inventory movements in various trade channels that include estimated trade inventory movements of PMI’s competitors arising from market-specific factors that significantly distort reported volume disclosures. Such factors may include changes to the manufacturing supply chain, shipment methods, consumer demand, timing of excise tax increases or other influences that may affect the timing of sales to customers. In such instances, in addition to reviewing PMI shipment volumes and certain estimated total industry/market volumes on a reported basis, management reviews these measures on an adjusted basis that excludes the impact of distributor and/or estimated trade inventory movements. Management also believes that disclosing PMI shipment volumes and estimated total industry/market volumes in such circumstances on a basis that excludes the impact of distributor and/or estimated trade inventory movements, such as on an IMS basis, improves the comparability of performance and trends for these measures over different reporting periods • "Illicit trade" refers to domestic non-tax paid products • "SoM" stands for share of market • "ESG" stands for environmental, social, and governance • "OECD" is defined as Organisation for Economic Co-operation and Development 35

Glossary: Financial Terms • Net revenues related to combustible products refer to the operating revenues generated from the sale of these products, including shipping and handling charges billed to customers, net of sales and promotion incentives, and excise taxes. PMI recognizes revenue when control is transferred to the customer, typically either upon shipment or delivery of goods • Net revenues related to RRPs represent the sale of heated tobacco units, IQOS devices and related accessories, and other nicotine- containing products, primarily e-vapor products, including shipping and handling charges billed to customers, net of sales and promotion incentives, and excise taxes. PMI recognizes revenue when control is transferred to the customer, typically either upon shipment or delivery of goods • "SG&A" stands for selling, general & administrative • "Adjusted Operating Income (OI) Margin" is calculated as adjusted OI, divided by net revenues • "Net debt" is defined as total debt, less cash and cash equivalents • Growth rates presented on an organic basis for consolidated financial results reflect currency-neutral underlying results and "like-for-like" comparisons, where applicable • Management reviews net revenues, OI, OI margins, operating cash flow and earnings per share, or "EPS," on an adjusted basis, which may exclude the impact of currency and other items such as acquisitions, asset impairment and exit costs, tax items and other special items. Organic growth rates reflect the way management views underlying performance for these measures. PMI believes that such measures, including pro forma measures, will provide useful insight into underlying business trends and results, and will provide a more meaningful performance comparison for the period during which RBH remains under CCAA protection. For PMI's 2018 pro forma adjusted diluted EPS by quarter and year-to-date, see Schedule 3 in PMI’s third-quarter 2019 earnings release • "Fair value adjustment for equity security investments" reflects the adjustment resulting from share price movements in passive investments for publicly traded entities that are not controlled or influenced by PMI. Under U.S. GAAP, such adjustments are required, since January 1, 2018, to be reflected directly in the income statement 36

Glossary: Reduced-Risk Products • "Reduced-risk products," or "RRPs," is the term PMI uses to refer to products that present, are likely to present, or have the potential to present less risk of harm to smokers who switch to these products versus continuing smoking. PMI has a range of RRPs in various stages of development, scientific assessment and commercialization. PMI RRPs are smoke-free products that produce an aerosol that contains far lower quantities of harmful and potentially harmful constituents than found in cigarette smoke • "Aerosol" refers to a gaseous suspension of fine solid particles and/or liquid droplets • "Combustion" is the process of burning a substance in oxygen, producing heat and often light • "Smoke" is a visible suspension of solid particles, liquid droplets and gases in air, emitted when a material burns • "Heated tobacco units," or "HTUs," is the term PMI uses to refer to heated tobacco consumables, which for PMI include the company's HEETS, HEETS Creations, HEETS Dimensions, HEETS Marlboro and HEETS FROM MARLBORO (defined collectively as HEETS), Marlboro HeatSticks and Parliament HeatSticks, as well as the KT&G-licensed brand, Fiit (outside of Korea) • The IQOS heat-not-burn device is a precisely controlled heating device into which a specially designed and proprietary tobacco unit is inserted and heated to generate an aerosol • HTU "offtake volume" represents the estimated retail offtake of HTUs based on a selection of sales channels that vary by market, but notably include retail points of sale and e-commerce platforms • HTU "offtake share" represents the estimated retail offtake volume of HTUs divided by the sum of estimated total offtake volume for cigarettes and HTUs • Market share for HTUs is defined as the total sales volume for HTUs as a percentage of the total estimated sales volume for cigarettes and HTUs • "Total IQOS users" is defined as the estimated number of Legal Age (minimum 18 years) IQOS users that used PMI HTUs for at least 5% of their daily tobacco consumption over the past seven days • "Converted IQOS Users" is defined as the estimated number of Legal Age (minimum 18 years) IQOS users that used PMI HTUs for over 95% of their daily tobacco consumption over the past seven days 37

Glossary: Reduced-Risk Products (cont.) • "Predominant IQOS Users" is defined as the estimated number of Legal Age (minimum 18 years) IQOS users that used PMI HTUs units for between 70% and 95% of their daily tobacco consumption over the past seven days • "Situational IQOS Users" is defined as the estimated number of Legal Age (minimum 18 years) IQOS users that used PMI HTUs for between 5% and less than 70% of their daily tobacco consumption over the past seven days • "Abandoned IQOS Users" is defined as the estimated number of Legal Age (minimum 18 years) IQOS users that used PMI HTUs for less than 5% of their daily tobacco consumption over the past seven days • The estimated number of people who have "stopped smoking and switched to IQOS" is defined as: for markets where IQOS is the only heat-not- burn product, daily individual consumption of PMI HTUs represents the totality of their daily tobacco consumption in the past seven days; for markets where IQOS is one 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% are PMI HTUs • "FDA" stands for the U.S. Food & Drug Administration • "MRTP" stands for Modified Risk Tobacco Product, the term used by the U.S. FDA to refer to RRPs • "MRTP application" stands for Modified Risk Tobacco Product application under section 911 of the FD&C Act • "PMTA" stands for Premarket Tobacco Application under section 910 of the FD&C Act 38

Glossary: IQOS in the United States • On April 30, 2019, the U.S. Food and Drug Administration (FDA) announced that the marketing of a version of IQOS, PMI's heat-not-burn product, together with its heated tobacco units (the term PMI uses to refer to heated tobacco consumables), is appropriate for the protection of public health and authorized it for sale in the U.S. The FDA’s decision follows its comprehensive assessment of PMI’s premarket tobacco product applications (PMTAs) submitted to the Agency in 2017. In the third quarter of 2019, PMI brought a version of its IQOS Platform 1 device and three variants of its heated tobacco units to the U.S. through its license with Altria Group, Inc., whose subsidiary, Philip Morris USA Inc., is responsible for marketing the product and complying with the provisions set forth in the FDA's marketing order. On March 30, 2020, PMI submitted a supplemental PMTA for the IQOS 3 tobacco heating device with the U.S. Food and Drug Administration • On July 7, 2020, the FDA authorized the marketing of a version of IQOS, together with its heated tobacco units, as a modified risk tobacco product (MRTP). In doing so, the agency found that an IQOS exposure modification order is appropriate to promote the public health. The decision follows a review of the extensive scientific evidence package PMI submitted to the FDA in December 2016 to support its MRTP authorization applications • Shipment volume of heated tobacco units to the U.S. is included in the heated tobacco unit shipment volume of the Latin America & Canada segment. Revenues from shipments of Platform 1 devices, heated tobacco units and accessories to Altria Group, Inc. for sale under license in the U.S. are included in Net Revenues of the Latin America & Canada segment 39

2020: EPS Guidance Full-Year ($/share) 2020 Organic Forecast 2019 Growth Reported Diluted EPS $5.03≥ – $5.08 $4.61 - Tax items (0.06) (0.04) - Asset impairment and exit costs 0.04 0.23 - Canadian tobacco litigation-related expense 0.09 - Loss on deconsolidation of RBH 0.12 - Russia excise and VAT audit charge 0.20 - Fair value adjustment for equity security investments 0.04 (0.02) Adjusted Diluted EPS $5.05 – $5.10 $5.19 - Net earnings attributable to RBH (0.06) (a) Adjusted Diluted EPS $5.05 – $5.10 $5.13 (b) - Currency 0.32 Adjusted Diluted EPS, excluding currency $5.37 – $5.42 $5.13 (b) 5% – 6% (a) Net reported diluted EPS attributable to RBH from January 1, 2019 through March 21, 2019 (b) Pro forma Source: PMI Financials or estimates 40

EU Region: HEETS SoM Performance in Select Markets Growth Growth Growth Q3, 2020 vs. PY Q3, 2020 vs. PY Q3, 2020 vs. PY Croatia 4.4% +1.5pp Italy 7.8% +3.2pp Romania 2.8% +0.8pp Czech Slovak Latvia Republic 8.0 +2.2 10.3 +4.4 Republic 9.1 +2.1 Germany 1.9 +0.8 Lithuania 20.0 +5.1 Slovenia 4.5 +1.6 Greece 10.4 +2.6 Poland 4.7 +2.3 Switzerland 3.6 +1.1 Hungary 9.5 +7.3 Portugal 8.9 +2.7 UK 1.2 +0.8 Note: Select markets where HEETS share is ≥ 1%. Sales volume of PMI HTUs as a percentage of the total industry sales volume for cigarettes and HTUs Source: PMI Financials or estimates 41

Third-Largest ‘Brand’ in IQOS Markets Share in IQOS Markets (Q3, 2020)(a) 13.0% 6.0% 3.8% #3 Marlboro Winston PMI HTUs Rothmans L&M (a) Reflects 60 markets where IQOS is available in key cities or nationwide at October 1, 2020. Excludes the U.S. Note: All ‘brands’ except ‘PMI HTUs’ include cigarettes only. Reflects sales volume as a percentage of the total industry sales volume for cigarettes and HTUs Source: PMI Financials or estimates 42

Korea: Sequential Share Performance HEETS SoM 6.3% 6.4% 6.7% 6.4% 6.1% Adjusted(a) 6.6% 6.6% 6.2% 6.3% 6.0% Q3 Q4 Q1 Q2 Q3 2019 2020 (a) Excluding the impact of estimated trade inventory movements Source: PMI Financials or estimates 43

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 September 30, 2020 2019 % Change Reported Diluted EPS $ 1.48 $ 1.22 21.3% Less: Currency (0.09) Reported Diluted EPS, excluding Currency $ 1.57 $ 1.22 28.7% Quarters Ended September 30, Year Ended 2020 2019 % Change 2019 Reported Diluted EPS $ 1.48 $ 1.22 21.3% $ 4.61 Asset impairment and exit costs - 0.01 0.23 Canadian tobacco litigation-related expense - - 0.09 Loss on deconsolidation of RBH - - 0.12 Russia excise and VAT audit charge - 0.20 0.20 Fair value adjustment for equity security investments - - (0.02) Tax items (0.06) - (0.04) Adjusted Diluted EPS $ 1.42 $ 1.43 (0.7)% $ 5.19 Less: Currency (0.09) Adjusted Diluted EPS, excluding Currency $ 1.51 $ 1.43 5.6% 44

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions ($ in millions) / (Unaudited) Net Net Revenues Excluding Net Revenues Quarters Ended Net Excluding Currency Acquisitions excluding Total Currency & Revenues excluding September 30, Revenues Currency Currency & Acquisitions Currency Acquisitions 2020 Reduced-Risk Products 2019 % Change $ 706 $ 8 $ 699 $ - $ 699 European Union $ 467 51.3% 49.7% 49.7% 263 (21) 284 - 284 Eastern Europe 235 11.9% 21.1% 21.1% - (1) 1 - 1 Middle East & Africa 63 (100.0)% (99.0)% (99.0)% - - - - - South & Southeast Asia - - - - 753 12 742 - 742 East Asia & Australia 572 31.6% 29.6% 29.6% 7 (1) 8 - 8 Latin America & Canada (a) 7 (6.1)% 1.9% 1.9% $ 1,730 $ (4) $ 1,733 $ - $ 1,733 Total RRPs $ 1,344 28.6% 28.9% 28.9% 2020 PMI 2019 % Change $ 2,950 $ 40 $ 2,910 $ - $ 2,910 European Union $ 2,645 11.5% 10.0% 10.0% 899 (66) 965 - 965 Eastern Europe 899 - 7.3% 7.3% 768 (28) 796 - 796 Middle East & Africa 1,127 (31.9)% (29.4)% (29.4)% 1,071 3 1,068 - 1,068 South & Southeast Asia 1,246 (14.0)% (14.3)% (14.3)% 1,358 18 1,340 - 1,340 East Asia & Australia 1,252 8.5% 7.0% 7.0% 400 (45) 445 - 445 Latin America & Canada 473 (15.4)% (5.9)% (5.9)% $ 7,446 $ (78) $ 7,524 $ - $ 7,524 Total PMI $ 7,642 (2.6)% (1.5)% (1.5)% (a) Net Revenues include revenues from shipments of the IQOS heated tobacco device, heated tobacco units and accessories to Altria Group, Inc., commencing in the third quarter of 2019, for sale under license in the United States Note: Sum of Regions might not foot to Total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million 45

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Operating Income to Adjusted Operating Income, excluding Currency and Acquisitions ($ in millions) / (Unaudited) Adjusted Adjusted Operating Asset Excluding Asset Adjusted Operating Income Operating Adjusted Operating Acqui- Operating Impairment Excluding Currency Impairment Operating Currency Income excluding Income Operating Total Income sitions Income & Exit Costs Currency & Acqui- & Exit Costs Income excluding Currency (Loss) Income and Others sitions Currency & Acqui- sitions Quarters Ended 2020 2019 % Change September 30, $ 1,588 $ - $ 1,588 $ 23 $ 1,565 $ - $ 1,565 European Union $ 1,255 $ - $ 1,255 26.5% 24.7% 24.7% (a) 245 - 245 (105) 350 - 350 Eastern Europe (101) (374) 273 (10.3)% 28.2% 28.2% 261 - 261 (15) 276 - 276 Middle East & Africa 519 - 519 (49.7)% (46.8)% (46.8)% 402 - 402 (3) 405 - 405 South & Southeast Asia 539 - 539 (25.4)% (24.9)% (24.9)% 637 - 637 17 620 - 620 East Asia & Australia 451 - 451 41.2% 37.5% 37.5% 110 - 110 (44) 154 - 154 Latin America & Canada 125 (22)(b) 147 (25.2)% 4.8% 4.8% $ 3,243 $ - $ 3,243 $ (127) $ 3,370 $ - $ 3,370 Total PMI $ 2,788 $ (396) $ 3,184 1.9% 5.8% 5.8% (a) Represents the Russia excise and VAT audit charge (b) Represents asset impairment and exit costs 46

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Adjusted Operating Income Margin, excluding Currency and Acquisitions ($ in millions) / (Unaudited) Adjusted Adjusted Adjusted Adjusted Adjusted Net Operating Adjusted Operating Net Operating Adjusted Adjusted Operating Operating Revenues Income Adjusted Adjusted Adjusted Operating Income Revenues Income Operating Net Operating Income Income excluding Margin Operating Net Operating Operating Income Margin excluding excluding Income Revenues Income excluding Margin Currency excluding Income Revenues Income Income Margin excluding Currency Currency (a) Margin Currency excluding & Acqui- Currency (a) Margin Margin excluding Currency (b) & Acqui- (a) Currency sitions (b) & Acqui- Currency & Acqui- sitions (a) sitions sitions Quarters Ended 2020 2019 % Points Change September 30, $ 1,588 $ 2,950 53.8% $ 1,565 $ 2,910 53.8% $ 1,565 $ 2,910 53.8% European Union $ 1,255 $ 2,645 47.4% 6.4 6.4 6.4 245 899 27.3% 350 965 36.3% 350 965 36.3% Eastern Europe 273 899 30.4% (3.1) 5.9 5.9 261 768 34.0% 276 796 34.7% 276 796 34.7% Middle East & Africa 519 1,127 46.1% (12.1) (11.4) (11.4) 402 1,071 37.5% 405 1,068 37.9% 405 1,068 37.9% South & Southeast Asia 539 1,246 43.3% (5.8) (5.4) (5.4) 637 1,358 46.9% 620 1,340 46.3% 620 1,340 46.3% East Asia & Australia 451 1,252 36.0% 10.9 10.3 10.3 110 400 27.5% 154 445 34.6% 154 445 34.6% Latin America & Canada 147 473 31.1% (3.6) 3.5 3.5 $ 3,243 $ 7,446 43.6% $ 3,370 $ 7,524 44.8% $ 3,370 $ 7,524 44.8% Total PMI $ 3,184 $ 7,642 41.7% 1.9 3.1 3.1 (a) For the calculation of Adjusted Operating Income and Adjusted Operating Income excluding currency and acquisitions refer to previous slide (b) For the calculation of Net Revenues excluding currency and acquisitions refer to slide 45 47

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) Nine Months Ended September 30, 2020 2019 % Change Reported Diluted EPS $ 3.90 $ 3.57 9.2% Less: Currency (0.28) Reported Diluted EPS, excluding Currency $ 4.18 $ 3.57 17.1% Nine Months Ended September 30, Year Ended 2020 2019 % Change 2019 Reported Diluted EPS $ 3.90 $ 3.57 9.2% $ 4.61 Asset impairment and exit costs 0.04 0.03 0.23 Canadian tobacco litigation-related expense - 0.09 0.09 Loss on deconsolidation of RBH - 0.12 0.12 Russia excise and VAT audit charge - 0.20 0.20 Fair value adjustment for equity security investments 0.04 - (0.02) Tax items (0.06) (0.04) (0.04) Adjusted Diluted EPS $ 3.92 $ 3.97 (1.3)% $ 5.19 Less: Currency (0.28) Adjusted Diluted EPS, excluding Currency $ 4.20 $ 3.97 5.8% 48

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions ($ in millions) / (Unaudited) Net Net Revenues Excluding Net Revenues Nine Months Ended Net Excluding Currency Acquisitions excluding Total Currency & Revenues excluding September 30, Revenues Currency Currency & Acquisitions Currency Acquisitions 2020 Reduced-Risk Products 2019 % Change $ 1,861 $ (34) $ 1,895 $ - $ 1,895 European Union $ 1,242 49.9% 52.6% 52.6% 789 (45) 833 - 833 Eastern Europe 526 50.1% 58.6% 58.6% 52 - 52 - 52 Middle East & Africa 248 (79.2)% (79.0)% (79.0)% - - - - - South & Southeast Asia - - - - 2,169 13 2,156 - 2,156 East Asia & Australia 2,020 7.3% 6.7% 6.7% 20 (2) 22 - 22 Latin America & Canada (a) 18 12.0% 20.6% 20.6% $ 4,890 $ (68) $ 4,958 $ - $ 4,958 Total RRPs $ 4,053 20.6% 22.3% 22.3% 2020 PMI 2019 % Change $ 7,960 $ (130) $ 8,090 $ - $ 8,090 European Union $ 7,381 7.8% 9.6% 9.6% 2,470 (145) 2,615 - 2,615 Eastern Europe 2,300 7.4% 13.7% 13.7% 2,348 (46) 2,394 - 2,394 Middle East & Africa 3,058 (23.2)% (21.7)% (21.7)% 3,211 (24) 3,235 - 3,235 South & Southeast Asia 3,607 (11.0)% (10.3)% (10.3)% 4,045 (3) 4,048 - 4,048 East Asia & Australia 4,094 (1.2)% (1.1)% (1.1)% 1,216 (121) 1,337 - 1,337 Latin America & Canada 1,652 (26.4)% (19.1)% (19.1)% $ 21,250 $ (469) $ 21,719 $ - $ 21,719 Total PMI $ 22,092 (3.8)% (1.7)% (1.7)% (a) Net Revenues include revenues from shipments of the IQOS heated tobacco device, heated tobacco units and accessories to Altria Group, Inc., commencing in the third quarter of 2019, for sale under license in the United States Note: Sum of Regions might not foot to Total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million 49

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Operating Income to Adjusted Operating Income, excluding Currency and Acquisitions ($ in millions) / (Unaudited) Adjusted Adjusted Operating Asset Excluding Asset Adjusted Operating Income Adjusted Operating Acqui- Operating Impairment Excluding Currency Impairment Operating Currency Income excluding Operating Total Income sitions Income & Exit Costs Currency & Acqui- & Exit Costs Income excluding Currency Income and Others sitions Currency & Acqui- sitions Nine Months Ended 2020 2019 % Change September 30, $ 3,924 $ (27) $ 3,951 $ (107) $ 4,058 $ - $ 4,058 European Union $ 3,346 $ - $ 3,346 18.1% 21.3% 21.3% (a) 610 (7) 617 (208) 825 - 825 Eastern Europe 284 (374) 658 (6.2)% 25.4% 25.4% 819 (9) 828 (29) 857 - 857 Middle East & Africa 1,304 - 1,304 (36.5)% (34.3)% (34.3)% 1,290 (11) 1,301 - 1,301 - 1,301 South & Southeast Asia 1,471 (20)(b) 1,491 (12.7)% (12.7)% (12.7)% 1,792 (13) 1,805 2 1,803 - 1,803 East Asia & Australia 1,520 - 1,520 18.8% 18.6% 18.6% 328 (4) 332 (85) 417 - 417 Latin America & Canada 100 (478) (c) 578 (42.6)% (27.9)% (27.9)% $ 8,763 $ (71) $ 8,834 $ (427) $ 9,261 $ - $ 9,261 Total PMI $ 8,025 $ (872) $ 8,897 (0.7)% 4.1% 4.1% (a) Represents the Russia excise and VAT audit charge (b) Represents asset impairment and exit costs (c) Includes asset impairment and exit costs ($45 million), the Canadian tobacco litigation-related expense ($194 million) and the loss on deconsolidation of RBH ($239 million) 50

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Adjusted Operating Income Margin, excluding Currency and Acquisitions ($ in millions) / (Unaudited) Adjusted Adjusted Adjusted Adjusted Adjusted Net Operating Adjusted Operating Net Operating Adjusted Adjusted Operating Operating Revenues Income Adjusted Adjusted Adjusted Operating Income Revenues Income Operating Net Operating Income Income excluding Margin Operating Net Operating Operating Income Margin excluding excluding Income Revenues Income excluding Margin Currency excluding Income Revenues Income Income Margin excluding Currency Currency (a) Margin Currency excluding & Acqui- Currency (a) Margin Margin excluding Currency (b) & Acqui- (a) Currency sitions (b) & Acqui- Currency & Acqui- sitions (a) sitions sitions Nine Months Ended 2020 2019 % Points Change September 30, $ 3,951 $ 7,960 49.6% $ 4,058 $ 8,090 50.2% $ 4,058 $ 8,090 50.2% European Union $ 3,346 $ 7,381 45.3% 4.3 4.9 4.9 617 2,470 25.0% 825 2,615 31.5% 825 2,615 31.5% Eastern Europe 658 2,300 28.6% (3.6) 2.9 2.9 828 2,348 35.3% 857 2,394 35.8% 857 2,394 35.8% Middle East & Africa 1,304 3,058 42.6% (7.3) (6.8) (6.8) 1,301 3,211 40.5% 1,301 3,235 40.2% 1,301 3,235 40.2% South & Southeast Asia 1,491 3,607 41.3% (0.8) (1.1) (1.1) 1,805 4,045 44.6% 1,803 4,048 44.5% 1,803 4,048 44.5% East Asia & Australia 1,520 4,094 37.1% 7.5 7.4 7.4 332 1,216 27.3% 417 1,337 31.2% 417 1,337 31.2% Latin America & Canada 578 1,652 35.0% (7.7) (3.8) (3.8) $ 8,834 $ 21,250 41.6% $ 9,261 $ 21,719 42.6% $ 9,261 $ 21,719 42.6% Total PMI $ 8,897 $ 22,092 40.3% 1.3 2.3 2.3 (a) For the calculation of Adjusted Operating Income and Adjusted Operating Income excluding currency and acquisitions refer to previous slide (b) For the calculation of Net Revenues excluding currency and acquisitions refer to slide 49 51

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Adjustments for the Impact of RBH, excluding Currency ($ in millions, except per share data) / (Unaudited) Nine Months Ended September 30, 2020 2019 % Change Net Revenues $ 21,250 $ 22,092 (3.8)% Net Revenues attributable to RBH (181) (a) Net Revenues $ 21,250 $ 21,911 (b) (3.0)% Less: Currency (470) Net Revenues, excluding Currency $ 21,720 $ 21,911 (b) (0.9)% Adjusted Operating Income (c) $ 8,834 $ 8,897 (0.7)% Operating Income attributable to RBH (126) (a) Adjusted Operating Income $ 8,834 $ 8,771 (b) 0.7% Less: Currency (426) Adjusted Operating Income, excluding Currency $ 9,260 $ 8,771 (b) 5.6% Adjusted OI Margin 41.6% 40.3% 1.3 Adjusted OI Margin attributable to RBH (0.3) (a) Adjusted OI Margin 41.6% 40.0% (b) 1.6 Less: Currency (1.0) Adjusted OI Margin, excluding Currency 42.6% 40.0% (b) 2.6 Adjusted Diluted EPS (d) $ 3.92 $ 3.97 (1.3)% Net earnings attributable to RBH (0.06) (a) Adjusted Diluted EPS $ 3.92 $ 3.91 (b) 0.3% Less: Currency (0.28) Adjusted Diluted EPS, excluding Currency $ 4.20 $ 3.91 (b) 7.4% (a) Represents the impact attributable to RBH from January 1, 2019 through March 21, 2019 (b) Pro forma (c) For the calculation of Adjusted Operating Income refer to slide 50 (d) For the calculation refer to slide 48 Note: Financials attributable to RBH include Duty Free sales in Canada 52

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Reported Diluted EPS to Pro Forma Adjusted Diluted EPS (Unaudited) Quarter Quarter Six Months Quarter Nine Months Quarter Year Ended Ended Ended Ended Ended Ended Ended Mar 31, Jun 30, Jun 30, Sept 30, Sept 30, Dec 31, Dec 31, 2019 2019 2019 2019 2019 2019 2019 Reported Diluted EPS $ 0.87 $ 1.49 $ 2.36 $ 1.22 $ 3.57 $ 1.04 $ 4.61 Asset impairment and exit costs 0.01 0.01 0.02 0.01 0.03 0.20 0.23 Canadian tobacco litigation-related expense 0.09 - 0.09 - 0.09 - 0.09 Loss on deconsolidation of RBH 0.12 - 0.12 - 0.12 - 0.12 Russia excise and VAT audit charge - - - 0.20 0.20 - 0.20 Fair value adjustment for equity security investments - - - - - (0.02) (0.02) Tax items - (0.04) (0.04) - (0.04) - (0.04) Adjusted Diluted EPS $ 1.09 $ 1.46 $ 2.55 $ 1.43 $ 3.97 $ 1.22 $ 5.19 Net earnings attributable to RBH (0.06) (a) - (0.06) (a) - (0.06) (a) - (0.06) (a) Pro Forma Adjusted Diluted EPS $ 1.03 $ 1.46 $ 2.49 $ 1.43 $ 3.91 $ 1.22 $ 5.13 (a) Represents the impact of net earnings attributable to RBH from January 1, 2019 through March 21, 2019 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 53

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions ($ in millions) / (Unaudited) Net Net Revenues Excluding Net Revenues Years Ended Net Excluding Currency Acquisitions excluding Total Currency & Revenues excluding December 31, Revenues Currency Currency & Acquisitions Currency Acquisitions 2019 Reduced-Risk Products 2018 % Change $ 1,724 $ (98) $ 1,822 $ - $ 1,822 European Union $ 865 99.2% +100% +100% 844 (19) 864 - 864 Eastern Europe 324 +100% +100% +100% 321 (1) 322 - 322 Middle East & Africa 382 (15.8)% (15.7)% (15.7)% - - - - - South & Southeast Asia - - - - 2,671 13 2,658 - 2,658 East Asia & Australia 2,506 6.6% 6.0% 6.0% 27 (1) 28 - 28 Latin America & Canada (a) 19 41.9% 49.9% 49.9% $ 5,587 $ (106) $ 5,693 $ - $ 5,693 Total RRPs $ 4,096 36.4% 39.0% 39.0% 2019 PMI 2018 % Change $ 9,817 $ (563) $ 10,380 $ - $ 10,380 European Union $ 9,298 5.6% 11.6% 11.6% 3,282 (108) 3,390 - 3,390 Eastern Europe 2,921 12.4% 16.1% 16.1% 4,042 (162) 4,204 - 4,204 Middle East & Africa 4,114 (1.8)% 2.2% 2.2% 5,094 (10) 5,104 - 5,104 South & Southeast Asia 4,656 9.4% 9.6% 9.6% 5,364 (26) 5,390 - 5,390 East Asia & Australia 5,580 (3.9)% (3.4)% (3.4)% 2,206 (68) 2,274 - 2,274 Latin America & Canada 3,056 (27.8)% (25.6)% (25.6)% $ 29,805 $ (937) $ 30,742 $ - $ 30,742 Total PMI $ 29,625 0.6% 3.8% 3.8% (a) Net Revenues include revenues from shipments of the IQOS heated tobacco device, heated tobacco units and accessories to Altria Group, Inc., commencing in the third quarter of 2019, for sale under license in the United States Note: Sum of Regions might not foot to Total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million 54

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions ($ in millions) / (Unaudited) Net Net Revenues Excluding Net Revenues Years Ended Net Excluding Currency Acquisitions excluding Total Currency & Revenues excluding December 31, Revenues Currency Currency & Acquisitions Currency Acquisitions 2017 Reduced-Risk Products 2016 % Change $ 269 $ 5 $ 264 $ - $ 264 European Union $ 57 +100% +100% +100% 55 3 52 - 52 Eastern Europe 6 +100% +100% +100% 94 (3) 98 - 98 Middle East & Africa 4 +100% +100% +100% - - - - - South & Southeast Asia - - - - 3,218 (94) 3,312 - 3,312 East Asia & Australia 666 +100% +100% +100% 4 - 4 - 4 Latin America & Canada 1 +100% +100% +100% $ 3,640 $ (89) $ 3,729 $ - $ 3,729 Total RRPs $ 733 +100% +100% +100% 2017 PMI 2016 % Change $ 8,318 $ 45 $ 8,273 $ - $ 8,273 European Union $ 8,162 1.9% 1.4% 1.4% 2,711 229 2,482 - 2,482 Eastern Europe 2,484 9.1% (0.1)% (0.1)% 3,988 (520) 4,508 - 4,508 Middle East & Africa 4,516 (11.7)% (0.2)% (0.2)% 4,417 (63) 4,480 - 4,480 South & Southeast Asia 4,396 0.5% 1.9% 1.9% 6,373 (74) 6,447 - 6,447 East Asia & Australia 4,285 48.7% 50.5% 50.5% 2,941 (54) 2,995 - 2,995 Latin America & Canada 2,842 3.5% 5.4% 5.4% $ 28,748 $ (437) $ 29,185 $ - $ 29,185 Total PMI $ 26,685 7.7% 9.4% 9.4% Note: Sum of Regions might not foot to Total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million 55

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions ($ in millions) / (Unaudited) Net Net Revenues Excluding Net Revenues Years Ended Net Excluding Currency Acquisitions excluding Total Currency & Revenues excluding December 31, Revenues Currency Currency & Acquisitions Currency Acquisitions 2016 Reduced-Risk Products 2015 % Change $ 57 $ (2) $ 60 $ - $ 60 European Union $ 29 96.4% +100% +100% 6 - 6 - 6 Eastern Europe - - - - 4 1 3 - 3 Middle East & Africa - - - - - - - - - South & Southeast Asia - - - - 666 70 597 - 597 East Asia & Australia 35 +100% +100% +100% 1 - 1 - 1 Latin America & Canada - - - - $ 733 $ 67 $ 666 $ - $ 666 Total RRPs $ 64 +100% +100% +100% 2016 PMI 2015 % Change $ 8,162 $ (147) $ 8,309 $ - $ 8,309 European Union $ 8,068 1.2% 3.0% 3.0% 2,484 (340) 2,824 - 2,824 Eastern Europe 2,735 (9.2)% 3.3% 3.3% 4,516 (260) 4,776 - 4,776 Middle East & Africa 4,629 (2.4)% 3.2% 3.2% 4,396 (71) 4,467 - 4,467 South & Southeast Asia 4,288 2.5% 4.2% 4.2% 4,285 63 4,222 - 4,222 East Asia & Australia 3,915 9.5% 7.8% 7.8% 2,842 (525) 3,367 - 3,367 Latin America & Canada 3,159 (10.0)% 6.6% 6.6% $ 26,685 $ (1,280) $ 27,965 $ - $ 27,965 Total PMI $ 26,794 (0.4)% 4.4% 4.4% Note: Sum of Regions might not foot to Total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million 56

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Calculation of Adjusted Operating Income Margin ($ in millions) / (Rounded) Year Ended December 31, 2016 Asset Adjusted Adjusted Operating Net Impairment & Operating Operating Income Revenues Exit Costs Income Income Margin East Asia & Australia 1,691 - 1,691 4,285 39.5% 57

Delivering a Smoke-Free Future 2020 Third-Quarter Results October 20, 2020


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


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


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


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).


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.			☐


99.1			Philip Morris International Inc. Press Release, dated October 20, 2020 (furnished pursuant to Item 2.02).


99.2			Conference Call Script dated October 20, 2020 (furnished pursuant to Item 7.01).


99.3			Webcast Slides dated October 20, 2020 (furnished pursuant to Item 7.01).


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


Item 7.01.			Regulation FD Disclosure.


(d)			Exhibits.