Document

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]
Email: [email protected]

PHILIP MORRIS INTERNATIONAL INC. REPORTS 2019 FOURTH-QUARTER & FULL-YEAR RESULTS;

2019 FULL-YEAR REPORTED DILUTED EPS OF $4.61 VS. $5.08 IN 2018, REFLECTING

CURRENCY-NEUTRAL LIKE-FOR-LIKE ADJUSTED DILUTED EPS GROWTH OF 9.9%;

PROVIDES 2020 EARNINGS PER SHARE FORECAST

NEW YORK, February 6, 2020 – Philip Morris International Inc. (NYSE: PM) today announces its 2019 fourth-quarter and full-year results. Comparisons presented in this press release on a "like-for-like" basis reflect pro forma 2018 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, reflecting the deconsolidation, PMI's total market share has been restated for previous periods.

2019 FULL-YEAR & FOURTH-QUARTER HIGHLIGHTS

2019 Full-Year


•	Reported diluted EPS of $4.61, down by 9.3%; down by 6.7%, excluding currency


•	Adjusted diluted EPS of $5.19, up by 1.8%; up by 9.9% on a like-for-like basis, excluding unfavorable currency of $0.13 per share


•	Cigarette and heated tobacco unit shipment volume down by 2.0%, reflecting cigarette shipment volume down by 4.5% and heated tobacco unit shipment volume up by 44.2% (to 59.7 billion units); down by 1.4% on a like-for-like basis


•	Market share of heated tobacco units in IQOS markets, excluding the U.S., up by 1.4 points to 5.0%


•	Net revenues up by 0.6%; up by 6.4% on a like-for-like basis, excluding currency


•	Operating income down by 7.4%; down by 4.9%, excluding currency


•	Adjusted operating income up by 11.2% on a like-for-like basis, excluding currency


•	Adjusted operating income margin up by 1.7 points to 39.2% on a like-for-like basis, excluding currency


•	Regular quarterly dividend increase of 2.6% to an annualized rate of $4.68 per common share


•	Total IQOS users at year-end estimated at 13.6 million, of which 9.7 million have stopped smoking and switched to IQOS


•	IQOS introduced for sale in the U.S. following its marketing order authorization by the U.S. Food and Drug Administration


•	New IQOS 3 DUO device introduced in IQOS markets globally, excluding the U.S.

2019 Fourth-Quarter


•	Reported diluted EPS of $1.04, down by 15.4%; also down by 15.4%, excluding currency


•	Adjusted diluted EPS of $1.22, down by 2.4%; up by 4.3% on a like-for-like basis, excluding currency


•	Cigarette and heated tobacco unit shipment volume down by 5.0%, reflecting cigarette shipment volume down by 8.0% and heated tobacco unit shipment volume up by 40.7% (to 17.1 billion units); down by 4.4% on a like-for-like basis


•	Market share of heated tobacco units in IQOS markets, excluding the U.S., up by 1.7 points to 5.5%


•	Asset impairment and exit costs of approximately $0.20 per share, principally related to a plant closure in Germany as part of global manufacturing infrastructure optimization


•	Net revenues up by 2.9%; up by 6.3% on a like-for-like basis, excluding currency


•	Operating income down by 7.3%; down by 8.3%, excluding currency


•	Adjusted operating income up by 11.9% on a like-for-like basis, excluding currency


•	Adjusted operating income margin up by 1.8 points to 36.7% on a like-for-like basis, excluding currency

"2019 marked a year of strong underlying business performance for PMI, driven by broad-based growth for IQOS and solid pricing for our combustible tobacco portfolio, with like-for-like adjusted diluted EPS up by 9.9%, excluding currency," said André Calantzopoulos, Chief Executive Officer.

"We continue to make significant progress in the transformation of our business, with smoke-free products now accounting for 8% of shipment volume and nearly one-fifth of net revenues, while further demonstrating our ability to maintain combustible tobacco leadership internationally, as evidenced by Marlboro’s full-year cigarette share of 10% -- an all-time high."

"Although we anticipate a few temporary headwinds, notably in Indonesia, we enter 2020 with favorable momentum, and expect to deliver like-for-like currency-neutral net revenue and adjusted diluted EPS growth this year consistent with our 2019 to 2021 compound annual growth targets of at least 5% and 8%, as well as further margin expansion."

2020 FULL-YEAR FORECAST



	Full-Year
2020 EPS Forecast	2020 Forecast			2019			Adjusted Growth

Reported Diluted EPS	≥	$5.50		$4.61
2019 Tax items				(0.04	)
2019 Asset impairment and exit costs				0.23
2019 Canadian tobacco litigation-related expense				0.09
2019 Loss on deconsolidation of RBH				0.12
2019 Russia excise and VAT audit charge				0.20
2019 Fair value adjustment for equity security investments				(0.02	)
Adjusted Diluted EPS		$5.50		$5.19
Net earnings attributable to RBH				(0.06	)	^(a)
Adjusted Diluted EPS		$5.50		$5.13		^(b)
Currency		(0.04	)
Adjusted Diluted EPS, excluding currency	≥	$5.54		$5.13		^(b)	≥	8%

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

Reported diluted earnings per share forecast to be at least $5.50, at prevailing exchange rates, representing a projected increase of at least 19% versus reported diluted earnings per share of $4.61 in 2019.

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•	Excluding an unfavorable currency impact, at prevailing exchange rates, of approximately $0.04 per share, this forecast represents a projected increase of at least 8% versus pro forma adjusted diluted earnings per share of $5.13 in 2019, as detailed in the above table.

2020 Full-Year Forecast Assumptions

This forecast assumes:


•	An estimated total international industry volume decline, excluding China and the U.S., of approximately 3% to 4%, partly reflecting the impact of an above-inflation excise tax increase in Indonesia (following no increase in 2019) and further out-switching to the cigarillo category in Japan, which together account for approximately 100 basis points of the decline;


•	A total cigarette and heated tobacco unit shipment volume decline for PMI of approximately 2.5% to 3.5% on a like-for-like basis, partly reflecting the same factors as noted above for the total international industry volume decline;


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


•	Currency-neutral net revenue growth, on a like-for-like basis, of approximately 5%;


•	An increase in full-year currency-neutral, like-for-like adjusted operating income margin of at least 150 basis points versus 2019, partly reflecting cost efficiencies that fully offset incremental net RRP investment;


•	Operating cash flow of approximately $10.5 billion, subject to year-end working capital requirements and currency movements;


•	Capital expenditures of approximately $1.0 billion;


•	An effective tax rate of approximately 23.0%; and


•	No share repurchases.

This forecast excludes the impact of any future acquisitions, unanticipated 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, and any unusual events.

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

Global Collaboration Agreement with KT&G

On January 29, 2020, PMI announced a global collaboration agreement with the leading tobacco and nicotine company in South Korea, KT&G, to commercialize KT&G’s smoke-free products outside of the country. This collaboration serves to accelerate the achievement of PMI's vision of a smoke-free future, by offering adult smokers a broader choice of smoke-free alternatives to cigarettes.

The agreement, which will run for an initial period of three years, allows PMI to distribute current KT&G smoke-free products, and their evolutions, on an exclusive basis, and does not restrict PMI from distributing its own or third-party products. KT&G’s smoke-free product portfolio includes heat-not-burn tobacco products (e.g., Lil Mini and Lil Plus), hybrid technologies that combine heat-not-burn tobacco and e-vapor technologies (e.g., Lil Hybrid), and e-vapor products (e.g., Lil Vapor).

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Products sold under the agreement will be subject to careful assessment to ensure they meet the regulatory requirements in the markets where they are launched, as well as PMI’s high standards of quality and scientific substantiation of their harm reduction potential. PMI and KT&G will seek any necessary regulatory approvals that may be required on a market-by-market basis.

PMI will be responsible for the commercialization of smoke-free products supplied under the agreement. The agreement does not pertain to the South Korean market or combustible products. There are no current plans to commercialize KT&G products in the U.S.

Conference Call

A conference call, hosted by André Calantzopoulos, Chief Executive Officer, and Martin King, Chief Financial Officer, will be webcast at 9:00 a.m., Eastern Time, on February 6, 2020. Access is at www.pmi.com/2019Q4earnings. 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.

CONSOLIDATED SHIPMENT VOLUME & MARKET SHARE



PMI Shipment Volume by Region	Fourth-Quarter				Full-Year
(million units)	2019	2018	Change		2019	2018	Change
Cigarettes
European Union	41,226	43,744	(5.8	)%	174,319	179,622	(3.0	)%
Eastern Europe	25,865	28,424	(9.0	)%	100,644	108,718	(7.4	)%
Middle East & Africa	32,611	35,774	(8.8	)%	134,568	136,605	(1.5	)%
South & Southeast Asia	44,704	47,623	(6.1	)%	174,934	178,469	(2.0	)%
East Asia & Australia	11,301	12,772	(11.5	)%	49,951	56,163	(11.1	)%
Latin America & Canada	19,387	21,909	(11.5	)%	72,293	80,738	(10.5	)%
Total PMI	175,094	190,246	(8.0	)%	706,709	740,315	(4.5	)%

Heated Tobacco Units
European Union	3,759	2,124	77.0	%	12,569	5,977	+100%
Eastern Europe	5,240	2,312	+100%		13,453	4,979	+100%
Middle East & Africa	593	571	3.9	%	2,654	3,403	(22.0	)%
South & Southeast Asia	—	—	—	%	—	—	—	%
East Asia & Australia	7,424	7,111	4.4	%	30,677	26,866	14.2	%
Latin America & Canada ⁽¹⁾	97	49	98.0	%	299	147	+100%
Total PMI	17,113	12,167	40.7	%	59,652	41,372	44.2	%

Cigarettes and Heated Tobacco Units
European Union	44,985	45,868	(1.9	)%	186,888	185,599	0.7	%
Eastern Europe	31,105	30,736	1.2	%	114,097	113,697	0.4	%
Middle East & Africa	33,204	36,345	(8.6	)%	137,222	140,008	(2.0	)%
South & Southeast Asia	44,704	47,623	(6.1	)%	174,934	178,469	(2.0	)%
East Asia & Australia	18,725	19,883	(5.8	)%	80,628	83,029	(2.9	)%
Latin America & Canada	19,484	21,958	(11.3	)%	72,592	80,885	(10.3	)%
Total PMI	192,207	202,413	(5.0	)%	766,361	781,687	(2.0	)%
(1) Includes shipments to Altria Group, Inc., commencing in the third quarter of 2019, for sale in the United States under license.

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Full-Year

Estimated international industry cigarette and heated tobacco unit volume, excluding China and the U.S., of 2.7 trillion, decreased by 2.0%, due to the EU, EE, S&SA, EA&A and LA&C, as described in the Regional sections below.

PMI's total shipment volume decreased by 2.0%, or by 1.4% on a like-for-like basis, due to:


•	Middle East & Africa, primarily reflecting lower cigarette shipment volume, notably in Turkey, partly offset by Egypt and Saudi Arabia, and lower heated tobacco unit shipment volume in PMI Duty Free;


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


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


•	Latin America & Canada, reflecting lower cigarette shipment volume, principally in Argentina, Canada (primarily due to the impact of the deconsolidation of RBH) and Venezuela. On a like-for-like basis, PMI's total shipment volume in the Region decreased by 5.2%;

partly offset by


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


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

Impact of Inventory Movements

On a like-for-like basis, excluding the net favorable impact of estimated distributor inventory movements of approximately 1.1 billion units, PMI’s total in-market sales declined by 1.5%, due to a 3.7% decline of cigarettes, partly offset by a 35.3% increase in heated tobacco units.

The net favorable impact of estimated distributor inventory movements of approximately 1.1 billion units reflected a 2.7 billion favorable impact from heated tobacco units (driven primarily by Japan, mainly reflecting a favorable comparison with 2018 in which IQOS consumable inventories were reduced, partly offset by PMI Duty Free), partially offset by a 1.6 billion unfavorable impact from cigarettes (due primarily to Japan, North Africa and Thailand, partly offset by the EU Region and Saudi Arabia).

Fourth-Quarter

PMI's total shipment volume decreased by 5.0%, or by 4.4% on a like-for-like basis, principally due to:


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


•	Middle East & Africa, reflecting lower cigarette shipment volume, notably in Turkey, partly offset by Saudi Arabia;


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

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•	East Asia & Australia, reflecting lower cigarette shipment volume, notably in Japan, as well as lower heated tobacco unit shipment volume in Korea, partly offset by higher heated tobacco unit shipment volume in Japan; and


•	Latin America & Canada, reflecting lower cigarette shipment volume, primarily in Argentina and Canada (mainly due to the impact of the deconsolidation of RBH). On a like-for-like basis, PMI's total shipment volume in the Region decreased by 5.2%;

partly offset by


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

Impact of Inventory Movements

On a like-for-like basis, excluding the net unfavorable impact of estimated distributor inventory movements of approximately 2.5 billion units, PMI’s total in-market sales declined by 3.1%, due to a 6.0% decline of cigarettes, partly offset by a 44.7% increase in heated tobacco units.

The net unfavorable impact of estimated distributor inventory movements of approximately 2.5 billion units reflected a 2.3 billion impact from cigarettes, due mainly to the EU Region, Japan and North Africa.

PMI Shipment Volume by Brand



PMI Shipment Volume by Brand	Fourth-Quarter				Full-Year
(million units)	2019	2018	Change		2019	2018	Change
Cigarettes
Marlboro	66,025	68,436	(3.5	)%	262,908	264,423	(0.6	)%
L&M	23,107	23,038	0.3	%	92,873	89,789	3.4	%
Chesterfield	13,683	14,831	(7.7	)%	57,185	59,452	(3.8	)%
Philip Morris	12,216	13,177	(7.3	)%	49,164	49,864	(1.4	)%
Parliament	9,639	10,656	(9.5	)%	38,723	41,697	(7.1	)%
Sampoerna A	9,121	10,391	(12.2	)%	35,133	39,522	(11.1	)%
Dji Sam Soe	9,346	8,044	16.2	%	32,435	29,195	11.1	%
Bond Street	6,926	8,212	(15.7	)%	28,025	32,173	(12.9	)%
Lark	4,027	5,417	(25.7	)%	19,602	23,021	(14.9	)%
Fortune	3,129	4,805	(34.9	)%	12,831	16,596	(22.7	)%
Others	17,875	23,239	(23.1	)%	77,830	94,583	(17.7	)%
Total Cigarettes	175,094	190,246	(8.0	)%	706,709	740,315	(4.5	)%
Heated Tobacco Units ⁽¹⁾	17,113	12,167	40.7	%	59,652	41,372	44.2	%
Total PMI	192,207	202,413	(5.0	)%	766,361	781,687	(2.0	)%
(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.

Full-Year

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


•	Marlboro, mainly due to Italy and Japan, partly reflecting the impact of out-switching to heated tobacco units, as well as France, partially offset by the Philippines, Saudi Arabia and Turkey;


•	Chesterfield, mainly due to Argentina, Italy, Russia and Venezuela, partly offset by Brazil;


•	Philip Morris, notably due to Argentina, partly offset by Indonesia and Russia;

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•	Parliament, mainly due to Japan, Korea and Russia;


•	Sampoerna A in Indonesia, mainly reflecting the impact of retail price increases resulting in widened price gaps with competitors' products;


•	Bond Street, mainly due to Russia and Ukraine;


•	Lark, mainly due to Japan and Turkey;


•	Fortune in the Philippines, mainly reflecting up-trading to Marlboro resulting from narrowed price gaps with the below premium price segment; and


•	"Others," notably due to: the impact of the deconsolidation of RBH in Canada; mid-price Sampoerna U in Indonesia, partly reflecting the impact of above-inflation retail price increases; and low-price brands, notably Morven in Pakistan and Next/Dubliss in Russia, partly offset by Jackpot in the Philippines.

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

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


•	L&M, mainly driven by Egypt and Thailand, partly offset by Russia and Turkey; and


•	Dji Sam Soe in Indonesia, driven by the strong performance of the DSS Magnum Mild 16 variant and the introduction of 20s and 50s variants.

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, increased by 0.1 point to 28.4%, reflecting:


•	Total international heated tobacco unit market share of 2.2%, up by 0.6 points; and


•	Total international cigarette market share of 26.2%, down by 0.5 points.

PMI's total international cigarette market share, defined as PMI's cigarette sales volume as a percentage of total industry cigarette sales volume, was down by 0.3 points to 26.9%, mainly reflecting: out-switching to heated tobacco units, notably in the EU and Japan; and lower cigarette market share, notably in Argentina, Indonesia, Korea and Turkey.

In 2019, PMI owned six of the world's top 15 international cigarette brands, with international cigarette market shares as follows: Marlboro, 10.0%; L&M, 3.5%; Chesterfield, 2.2%; Philip Morris, 1.9%; Parliament, 1.5%; and Bond Street, 1.1%.

Fourth-Quarter

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


•	Marlboro, mainly due to Italy and Japan, partly reflecting the impact of out-switching to heated tobacco units, as well as France, the GCC and Turkey, partially offset by PMI Duty Free;


•	Chesterfield, mainly due to Argentina, Italy and Turkey, partly offset by Brazil;


•	Philip Morris, mainly due to Argentina and Russia, partly offset by Indonesia;


•	Parliament, mainly due to Russia and Turkey;


•	Sampoerna A in Indonesia, mainly reflecting the same factor as in the full year;


•	Bond Street, mainly due to Russia;


•	Lark, mainly due to Japan and Turkey;

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•	Fortune in the Philippines, mainly reflecting the same factor as in the full year; and


•	"Others," notably due to: the impact of the deconsolidation of RBH in Canada; mid-price Sampoerna U in Indonesia, partly reflecting the same factor as in the full year; 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 Kazakhstan, Russia and Ukraine) and Japan, partly offset by Korea.

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


•	L&M, mainly driven by Egypt and Thailand, partly offset by Germany and Turkey; and


•	Dji Sam Soe in Indonesia, driven by the same factors as in the full year.

International Share of Market

PMI's total international market share (excluding China and the U.S.) decreased by 0.2 points to 28.4%, reflecting:


•	Total international cigarette market share of 25.9%, down by 1.1 point; and


•	Total international heated tobacco unit market share of 2.4%, up by 0.8 points.

PMI's total international cigarette market share was down by 0.9 points to 26.7%, mainly reflecting: out-switching to heated tobacco units, notably in the EU Region and Russia; and lower cigarette market share, notably in Argentina, Indonesia, Korea and Turkey.

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CONSOLIDATED FINANCIAL SUMMARY

Full-Year



Financial Summary - Years Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
Financial Summary - Years Ended December 31,	2019		2018		Total		Excl. Curr.		Total		Cur- rency		Price	Vol/ Mix		Cost/ Other⁽¹⁾
(in millions)	2019		2018		Total		Excl. Curr.		Total		Cur- rency		Price	Vol/ Mix		Cost/ Other⁽¹⁾
Net Revenues	$ 29,805		$ 29,625		0.6	%	3.8	%	180		(937	)	1,483	397		(763	)
Cost of Sales	(10,513	)	(10,758	)	2.3	%	(0.5	)%	245		302		—	(309	)	252
Marketing, Administration and Research Costs ⁽²⁾	(8,695	)	(7,408	)	(17.4	)%	(22.0	)%	(1,287	)	340		—	—		(1,627	)
Amortization of Intangibles	(66	)	(82	)	19.5	%	15.9	%	16		3		—	—		13
Operating Income	$ 10,531		$ 11,377		(7.4	)%	(4.9	)%	(846	)	(292	)	1,483	88		(2,125	)
Asset Impairment & Exit Costs ⁽³⁾	(422	)	—		—	%	—	%	(422	)	—		—	—		(422	)
Canadian Tobacco Litigation-Related Expense⁽³⁾	(194	)	—		—	%	—	%	(194	)	—		—	—		(194	)
Loss on Deconsolidation of RBH ⁽³⁾	(239	)	—		—	%	—	%	(239	)	—		—	—		(239	)
Russia Excise and VAT Audit Charge ⁽³⁾	(374	)	—		—	%	—	%	(374	)	—		—	—		(374	)
Adjusted Operating Income	$ 11,760		$ 11,377		3.4	%	5.9	%	383		(292	)	1,483	88		(896	)

Adjusted Operating Income Margin	39.5	%	38.4	%	1.1pp		0.8pp
⁽¹⁾ Cost/Other variance includes the impact of the RBH deconsolidation.
⁽²⁾ Unfavorable Cost/Other variance includes the 2019 Canadian tobacco litigation-related expense, the loss on deconsolidation of RBH, asset impairment and exit costs, the impact of the RBH deconsolidation and the Russia excise and VAT audit charge.
⁽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, increased by 3.8%, mainly reflecting: a favorable pricing variance, notably in Germany, Indonesia, Japan, the Philippines and Turkey; and favorable volume/mix, mainly driven by heated tobacco unit and IQOS device volume in the EU and Russia, and heated tobacco unit volume in Japan, partly offset by unfavorable volume/mix of cigarettes, notably in Australia, the EU, Indonesia, Japan and Russia, unfavorable heated tobacco unit volume in PMI Duty Free, and unfavorable IQOS device volume in Japan and Korea. The currency-neutral growth in net revenues of 3.8% came despite the unfavorable impact of $763 million, shown in "Cost/Other," predominantly resulting from the deconsolidation of RBH. On a like-for-like basis, net revenues, excluding unfavorable currency, increased by 6.4%, as detailed in Schedule 9.

Operating income, excluding unfavorable currency, decreased by 4.9%. Excluding the loss on deconsolidation of RBH, the Canadian tobacco litigation-related expense, asset impairment and exit charges related to plant closures in Argentina, Colombia, Germany and Pakistan as part of global manufacturing infrastructure optimization, as well as the Russia excise and VAT audit charge, adjusted operating income, excluding unfavorable currency, increased by 5.9%, primarily reflecting: a favorable pricing variance; favorable volume/mix, mainly driven by heated tobacco units in the EU, Japan and Russia, partly offset by unfavorable volume/mix of cigarettes, notably in Australia, the EU, Indonesia, Japan and Russia, as well as unfavorable heated tobacco unit volume in PMI Duty Free; and lower

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manufacturing costs; partly offset by higher marketing, administration and research costs, reflecting increased investment behind reduced-risk products (mainly in the EU and Eastern Europe), and the net unfavorable impact resulting from the deconsolidation of RBH shown in "Cost/Other." On a like-for-like basis, adjusted operating income, excluding unfavorable currency, increased by 11.2%, as detailed in Schedule 9.

Adjusted operating income margin, excluding currency, increased by 0.8 points to 39.2%, as detailed in Schedule 8, or by 1.7 points to 39.2% on a like-for-like basis, as detailed in Schedule 9.

Fourth-Quarter



Financial Summary - Quarters Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
Financial Summary - Quarters Ended December 31,	2019		2018		Total		Excl. Curr.		Total		Cur- rency		Price	Vol/ Mix		Cost/ Other⁽¹⁾
(in millions)	2019		2018		Total		Excl. Curr.		Total		Cur- rency		Price	Vol/ Mix		Cost/ Other⁽¹⁾
Net Revenues	$ 7,713		$ 7,499		2.9	%	2.9	%	214		(6	)	530	(60	)	(250	)
Cost of Sales	(2,778)		(2,781)		0.1	%	(0.9	)%	3		28		—	(54	)	29
Marketing, Administration and Research Costs ⁽²⁾	(2,413)		(1,997)		(20.8	)%	(21.2	)%	(416	)	7		—	—		(423	)
Amortization of Intangibles	(16)		(19)		15.8	%	15.8	%	3		—		—	—		3
Operating Income	$ 2,506		$ 2,702		(7.3	)%	(8.3	)%	(196	)	29		530	(114	)	(641	)
Asset Impairment & Exit Costs ⁽³⁾	(357	)	—		—	%	—	%	(357	)	—		—	—		(357	)
Adjusted Operating Income	$ 2,863		$ 2,702		6.0	%	4.9	%	161		29		530	(114	)	(284	)

Adjusted Operating Income Margin	37.1	%	36.0	%	1.1pp		0.7pp
⁽¹⁾ Cost/Other variance includes the impact of the RBH deconsolidation.
⁽²⁾ Unfavorable Cost/Other variance includes 2019 asset impairment and exit costs.
⁽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, increased by 2.9%, mainly reflecting: a favorable pricing variance, driven notably by France, Germany, the Philippines and Saudi Arabia; partly offset by unfavorable volume/mix, due mainly to cigarette volume, notably in Australia, the EU, Japan, the Philippines and Russia, and cigarette mix in Indonesia, largely offset by favorable heated tobacco unit volume, notably in the EU, Japan and Russia. The currency-neutral growth in net revenues of 2.9% came despite the unfavorable impact of $250 million, shown in "Cost/Other," predominantly resulting from the deconsolidation of RBH. On a like-for-like basis, net revenues, excluding unfavorable currency, increased by 6.3%, as detailed in Schedule 9.

Operating income, excluding favorable currency, decreased by 8.3%. Excluding asset impairment and exit charges related to plant closures, notably in Germany, adjusted operating income, excluding favorable currency, increased by 4.9%, primarily reflecting: a favorable pricing variance; partly offset by unfavorable volume/mix, reflecting the same drivers as for net revenues noted above; higher marketing, administration and research costs, reflecting increased investment behind reduced-risk products (mainly in the EU and Eastern Europe); and the net unfavorable impact resulting from the deconsolidation of RBH shown in "Cost/Other." On a like-for-like basis, adjusted operating income, excluding favorable currency, increased by 11.9%, as detailed in Schedule 9.

Adjusted operating income margin, excluding currency, increased by 0.7 points to 36.7%, as detailed in Schedule 8, or by 1.8 points to 36.7% on a like-for-like basis, as detailed in Schedule 9.

- -10 -

EUROPEAN UNION REGION

Full-Year



Financial Summary - Years Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
Financial Summary - Years Ended December 31,	2019		2018		Total		Excl. Curr.		Total		Cur- rency		Price	Vol/ Mix	Cost/ Other
(in millions)	2019		2018		Total		Excl. Curr.		Total		Cur- rency		Price	Vol/ Mix	Cost/ Other
Net Revenues	$ 9,817		$ 9,298		5.6	%	11.6	%	519		(563	)	288	794	—

Operating Income	$ 3,970		$ 4,105		(3.3	)%	4.8	%	(135	)	(330	)	288	587	(680	)
Asset Impairment & Exit Costs ⁽¹⁾	(342	)	—		—	%	—	%	(342	)	—		—	—	(342	)
Adjusted Operating Income	$ 4,312		$ 4,105		5.0	%	13.1	%	207		(330	)	288	587	(338	)

Adjusted Operating Income Margin	43.9	%	44.1	%	(0.2)pp		0.6pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues, excluding unfavorable currency, increased by 11.6%, reflecting a favorable pricing variance, driven principally by France and Germany, partly offset by Poland; and favorable volume/mix, primarily driven by heated tobacco unit and IQOS device volume, notably in the Czech Republic, Germany, Greece, Italy and Poland, partly offset by lower cigarette volume, notably in France and Italy, and unfavorable cigarette volume/mix in Germany.

Operating income, excluding unfavorable currency, increased by 4.8%. Excluding asset impairment and exit charges related to the plant closure in Germany, adjusted operating income, excluding unfavorable currency, increased by 13.1%, mainly reflecting: a favorable pricing variance; favorable volume/mix, primarily driven by heated tobacco unit volume, notably in the Czech Republic, Germany, Greece, Italy and Poland, partly offset by lower cigarette volume, notably in France and Italy, and unfavorable cigarette volume/mix in Germany; partially offset by higher manufacturing costs and higher marketing, administration and research costs, notably related to increased investment behind reduced-risk products.

Adjusted operating income margin, excluding currency, increased by 0.6 points to 44.7%, as detailed in Schedule 8.

Fourth-Quarter



Financial Summary - Quarters Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
Financial Summary - Quarters Ended December 31,	2019		2018		Total		Excl. Curr.		Total		Cur- rency		Price	Vol/ Mix	Cost/ Other
(in millions)	2019		2018		Total		Excl. Curr.		Total		Cur- rency		Price	Vol/ Mix	Cost/ Other
Net Revenues	$ 2,436		$ 2,340		4.1	%	8.6	%	96		(106	)	82	120	—

Operating Income	$ 624		$ 1,009		(38.2	)%	(31.3	)%	(385	)	(69	)	82	69	(467	)
Asset Impairment & Exit Costs ⁽¹⁾	(342	)	—		—	%	—	%	(342	)	—		—	—	(342	)
Adjusted Operating Income	$ 966		$ 1,009		(4.3	)%	2.6	%	(43	)	(69	)	82	69	(125	)

Adjusted Operating Income Margin	39.7	%	43.1	%	(3.4)pp		(2.4)pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues, excluding unfavorable currency, increased by 8.6%, reflecting a favorable pricing variance, driven principally by France and Germany, and favorable volume/mix, mainly driven by heated tobacco unit volume, notably

- -11 -

in the Czech Republic, Germany, Italy and Poland, partly offset by lower cigarette volume, notably in France and Italy, and unfavorable cigarette volume/mix in Germany.

Operating income, excluding unfavorable currency, decreased by 31.3%, due primarily to the unfavorable impact, shown in "Cost/Other," of the asset impairment and exit charges related to the plant closure in Germany. Excluding these charges, adjusted operating income, excluding unfavorable currency, increased by 2.6%, mainly reflecting: a favorable pricing variance; favorable volume/mix, reflecting the same drivers as for net revenues noted above; partly offset by higher manufacturing costs; and higher marketing, administration and research costs, largely related to increased investments behind reduced-risk products.

Adjusted operating income margin, excluding currency, decreased by 2.4 points to 40.7%, as detailed in Schedule 8.

Total Market, PMI Shipment & Market Share Commentaries



European Union Key Data	Fourth-Quarter						Full-Year
					Change						Change
	2019		2018		% / pp		2019		2018		% / pp
Total Market (billion units)	118.6		119.3		(0.6	)%	482.5		484.5		(0.4	)%

PMI Shipment Volume (million units)
Cigarettes	41,226		43,744		(5.8	)%	174,319		179,622		(3.0	)%
Heated Tobacco Units	3,759		2,124		77.0	%	12,569		5,977		+100.0%
Total EU	44,985		45,868		(1.9	)%	186,888		185,599		0.7	%

PMI Market Share
Marlboro	17.8	%	18.6	%	(0.8	)	18.0	%	18.5	%	(0.5	)
L&M	6.5	%	6.8	%	(0.3	)	6.7	%	6.9	%	(0.2	)
Chesterfield	5.7	%	5.8	%	(0.1	)	5.8	%	5.9	%	(0.1	)
Philip Morris	2.6	%	2.8	%	(0.2	)	2.7	%	2.9	%	(0.2	)
HEETS	3.2	%	1.7	%	1.5		2.5	%	1.2	%	1.3
Others	3.0	%	3.2	%	(0.2	)	3.1	%	3.1	%	—
Total EU	38.8	%	38.9	%	(0.1	)	38.8	%	38.5	%	0.3

Full-Year

The estimated total market in the EU decreased by 0.4% to 482.5 billion units, notably due to:


•	France, down by 7.4%, primarily reflecting the impact of significant excise tax-driven price increases and a higher prevalence of illicit trade;


•	Germany, down by 2.5%, primarily reflecting the impact of price increases in 2018 and March 2019; and


•	Italy, down by 1.5%, primarily reflecting the impact of price increases in 2018 and the first quarter of 2019;

partly offset by


•	Poland, up by 6.8%, primarily reflecting a lower prevalence of illicit trade; and


•	Spain, up by 0.8%, partly reflecting a lower prevalence of illicit trade.

PMI's total shipment volume increased by 0.7% to 186.9 billion units, reflecting:


•	higher heated tobacco unit shipment volume across the Region (notably Italy), driven by higher market share;

- -12 -

partly offset by


•	lower cigarette shipment volume, mainly in France, due to the lower total market and lower cigarette market share, as well as Germany and Italy, partly reflecting out-switching to heated tobacco units.

PMI's Regional market share increased by 0.3 points to 38.8%, with gains in the Czech Republic, Germany, Greece and Portugal, partly offset by declines in France, Poland and Spain.

Fourth-Quarter

The estimated total market in the EU decreased by 0.6% to 118.6 billion units, mainly driven by:


•	France, down by 10.3%, reflecting the same factors as in the full year; and


•	Germany, down by 4.5%, primarily reflecting the impact of estimated trade inventory movements of competitors' products and the impact of price increases in March 2019;

partly offset by


•	Poland, up by 7.3%, reflecting the same factor as in the full year.

PMI's total shipment volume decreased by 1.9% to 45.0 billion units, reflecting:


•	lower cigarette shipment volume, mainly in France, Germany and Italy, reflecting the same factors as in the full year;

partly offset by:


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

PMI's Regional market share decreased by 0.1 point to 38.8%, with declines in France, Germany and Spain largely offset by gains in the Czech Republic, Greece, Italy and Romania.

EASTERN EUROPE REGION

Full-Year



Financial Summary - Years Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
Financial Summary - Years Ended December 31,	2019		2018		Total		Excl. Curr.		Total		Cur- rency		Price	Vol/ Mix	Cost/ Other
(in millions)	2019		2018		Total		Excl. Curr.		Total		Cur- rency		Price	Vol/ Mix	Cost/ Other
Net Revenues	$ 3,282		$ 2,921		12.4	%	16.1	%	361		(108	)	85	384	—

Operating Income	$ 547		$ 902		(39.4	)%	(41.9	)%	(355	)	23		85	109	(572	)
Asset Impairment & Exit Costs	—		—		—	%	—	%	—		—		—	—	—
Russia Excise and VAT Audit Charge ⁽¹⁾	(374	)	—		—	%	—	%	(374	)	—		—	—	(374	)
Adjusted Operating Income	$ 921		$ 902		2.1	%	(0.4	)%	19		23		85	109	(198	)

Adjusted Operating Income Margin	28.1	%	30.9	%	(2.8)pp		(4.4)pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues, excluding unfavorable currency, increased by 16.1%, reflecting a favorable pricing variance, mainly driven by Russia and Ukraine, and favorable volume/mix, predominantly driven by heated tobacco unit and IQOS

- -13 -

device volume in Russia and Ukraine, and heated tobacco unit volume in Kazakhstan, partly offset by unfavorable cigarette volume/mix in Russia and lower cigarette volume in Ukraine.

Operating income, excluding favorable currency, decreased by 41.9%, primarily due to the unfavorable impact of the Russia excise and VAT audit charge, shown in "Cost/Other." Excluding this charge, adjusted operating income, excluding favorable currency, decreased by 0.4%, due to: higher marketing, administration and research costs, notably reflecting increased investments behind reduced-risk products (primarily in Russia in support of geographic expansion); and higher manufacturing costs; partly offset by a favorable pricing variance; and favorable volume/mix, predominantly driven by heated tobacco unit volume in Kazakhstan, Russia and Ukraine, partly offset by unfavorable cigarette volume/mix in Russia.

Adjusted operating income margin, excluding currency, decreased by 4.4 points to 26.5%, as detailed in Schedule 8.

Fourth-Quarter



Financial Summary - Quarters Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
Financial Summary - Quarters Ended December 31,	2019		2018		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)	2019		2018		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
Net Revenues	$ 982		$ 816		20.3	%	16.8	%	166	29	35	102	—

Operating Income	$ 263		$ 220		19.5	%	4.5	%	43	33	35	36	(61	)
Asset Impairment & Exit Costs	—		—		—	%	—	%	—	—	—	—	—
Adjusted Operating Income	$ 263		$ 220		19.5	%	4.5	%	43	33	35	36	(61	)

Adjusted Operating Income Margin	26.8	%	27.0	%	(0.2)pp		(2.9)pp

Net revenues, excluding favorable currency, increased by 16.8%, mainly reflecting: a favorable pricing variance, driven mainly by Russia, as well as favorable volume/mix, predominantly driven by heated tobacco unit volume in Russia and Ukraine, partly offset by unfavorable cigarette volume/mix mainly due to Russia.

Operating income, excluding favorable currency, increased by 4.5%, mainly reflecting: a favorable pricing variance; favorable volume/mix, predominantly driven by heated tobacco unit volume in Russia, partly offset by unfavorable cigarette volume/mix primarily in Russia; partially offset by higher marketing, administration and research costs, notably reflecting increased investments behind reduced-risk products (primarily in Russia in support of geographic expansion); and higher manufacturing costs.

Adjusted operating income margin, excluding currency, decreased by 2.9 points to 24.1%, as detailed in Schedule 8.

Total Market, PMI Shipment & Market Share Commentaries



PMI Shipment Volume	Fourth-Quarter				Full-Year
(million units)	2019	2018	Change		2019	2018	Change
Cigarettes	25,865	28,424	(9.0	)%	100,644	108,718	(7.4	)%
Heated Tobacco Units	5,240	2,312	+100.0%		13,453	4,979	+100.0%
Total Eastern Europe	31,105	30,736	1.2	%	114,097	113,697	0.4	%

- -14 -

Full-Year

The estimated total market in Eastern Europe decreased by 5.4% to 397.4 billion units, notably due to:


•	Russia, down by 5.2%, primarily reflecting the impact of price increases, as well as an increase in the prevalence of illicit trade; and


•	Ukraine, down by 12.0%, primarily reflecting the impact of excise tax-driven price increases, as well as an increase in the prevalence of illicit trade;

partly offset by


•	Kazakhstan, up by 5.7%, partly reflecting a lower prevalence of illicit trade.

PMI's Regional market share increased by 1.6 points to 28.7%.

PMI's total shipment volume increased by 0.4% to 114.1 billion units, notably reflecting:


•	Kazakhstan, up by 11.6%, reflecting the higher total market and a higher market share of heated tobacco units;

partly offset by


•	Ukraine, down by 3.0%, reflecting the lower total market, partly offset by a higher market share of heated tobacco units.

Fourth-Quarter

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


•	Russia, down by 5.3%, reflecting the same factors as in the full year; and


•	Ukraine, down by 9.3%, reflecting the same factors as in the full year;

partly offset by


•	Kazakhstan, up by 6.0%, reflecting the same factor as in the full year.

PMI's total shipment volume increased by 1.2% to 31.1 billion units, driven by:


•	Kazakhstan, up by 14.6%, reflecting the same factors as in the full year;

partly offset by


•	Russia, down by 0.5%, mainly reflecting the lower total market, partially offset by a higher market share of heated tobacco units; and


•	Ukraine, down by 2.5%, reflecting the same factors as in the full year.

- -15 -

MIDDLE EAST & AFRICA REGION

Full-Year



Financial Summary - Years Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
Financial Summary - Years Ended December 31,	2019		2018		Total		Excl. Curr.		Total		Cur- rency		Price	Vol/ Mix		Cost/ Other
(in millions)	2019		2018		Total		Excl. Curr.		Total		Cur- rency		Price	Vol/ Mix		Cost/ Other
Net Revenues	$ 4,042		$ 4,114		(1.8	)%	2.2	%	(72	)	(162	)	207	(113	)	(4	)

Operating Income	$ 1,684		$ 1,627		3.5	%	6.8	%	57		(53	)	207	(128	)	31
Asset Impairment & Exit Costs	—		—		—	%	—	%	—		—		—	—		—
Adjusted Operating Income	$ 1,684		$ 1,627		3.5	%	6.8	%	57		(53	)	207	(128	)	31

Adjusted Operating Income Margin	41.7	%	39.5	%	2.2pp		1.8pp

Net revenues, excluding unfavorable currency, increased by 2.2%, mainly reflecting: a favorable pricing variance, primarily driven by Egypt, the GCC, PMI Duty Free and Turkey, partly offset by Morocco; partially offset by unfavorable volume/mix, mainly due to heated tobacco unit and cigarette volume in PMI Duty Free, as well as cigarette volume in Kuwait, partly offset by favorable cigarette volume in Egypt and favorable cigarette volume/mix in Algeria and Saudi Arabia.

Operating income, excluding unfavorable currency, increased by 6.8%, mainly reflecting a favorable pricing variance; lower manufacturing costs; and lower marketing, administration and research costs, notably in the GCC; partly offset by unfavorable volume/mix, mainly due to the same factors as for net revenues noted above.

Adjusted operating income margin, excluding currency, increased by 1.8 points to 41.3%, as detailed in Schedule 8.

Fourth-Quarter



Financial Summary - Quarters Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
Financial Summary - Quarters Ended December 31,	2019		2018		Total		Excl. Curr.		Total		Cur- rency	Price	Vol/ Mix		Cost/ Other
(in millions)	2019		2018		Total		Excl. Curr.		Total		Cur- rency	Price	Vol/ Mix		Cost/ Other
Net Revenues	$ 984		$ 988		(0.4	)%	(1.6	)%	(4	)	12	53	(68	)	(1	)

Operating Income	$ 380		$ 359		5.8	%	1.7	%	21		15	53	(47	)	—
Asset Impairment & Exit Costs	—		—		—	%	—	%	—		—	—	—		—
Adjusted Operating Income	$ 380		$ 359		5.8	%	1.7	%	21		15	53	(47	)	—

Adjusted Operating Income Margin	38.6	%	36.3	%	2.3pp		1.3pp

Net revenues, excluding favorable currency, decreased by 1.6%, reflecting unfavorable volume/mix, notably due to cigarette volume in Kuwait and Turkey, partly offset by a favorable pricing variance, driven predominantly by the GCC (mainly Saudi Arabia), partially offset by Morocco.

- -16 -

Operating income, excluding favorable currency, increased by 1.7%, mainly reflecting a favorable pricing variance and lower marketing, research and administration costs, partly offset by unfavorable volume/mix, mainly reflecting the same drivers as for net revenues noted above, and higher manufacturing costs.

Adjusted operating income margin, excluding currency, increased by 1.3 points to 37.6%, as detailed in Schedule 8.

Total Market, PMI Shipment & Market Share Commentaries



PMI Shipment Volume	Fourth-Quarter				Full-Year
(million units)	2019	2018	Change		2019	2018	Change
Cigarettes	32,611	35,774	(8.8	)%	134,568	136,605	(1.5	)%
Heated Tobacco Units	593	571	3.9	%	2,654	3,403	(22.0	)%
Total Middle East & Africa	33,204	36,345	(8.6	)%	137,222	140,008	(2.0	)%

Full-Year

The estimated total market in the Middle East & Africa was essentially flat at 592.4 billion units, notably reflecting:


•	Algeria, up by 7.0%, partly reflecting the timing of estimated trade inventory movements in 2019 compared to 2018; and


•	Egypt, up by 1.6%, mainly due to the timing of estimated trade inventory movements in 2019 related to anticipated price increases;

offset by


•	Duty Free, down by 1.6%, mainly reflecting lower purchases by travelers to China; and


•	Morocco, down by 16.0%, primarily reflecting the impact of significant excise tax-driven price increases in 2019.

PMI's Regional market share decreased by 0.2 points to 23.5%.

PMI's total shipment volume decreased by 2.0% to 137.2 billion units, notably in:


•	PMI Duty Free, down by 7.0%. Excluding the net unfavorable impact of estimated distributor inventory movements of 0.4 billion units, PMI's in-market sales decline was 4.6%, mainly reflecting lower market share and the lower total market; and


•	Turkey, down by 5.6%, mainly reflecting lower market share, primarily driven by the timing of retail price increases in April 2019 compared to competition;

partly offset by


•	Egypt, up by 12.2%, primarily reflecting higher market share, driven by L&M, as well as the higher total market; and


•	Saudi Arabia, up by 24.9%. Excluding the net favorable impact of estimated distributor inventory movements of 1.5 billion units, mainly attributable to the timing of shipments compared to 2018, PMI's in-market sales grew by 4.1%, primarily reflecting higher market share.

Fourth-Quarter

The estimated total market in the Middle East & Africa decreased, notably driven by:


•	Morocco, down by 24.2%, reflecting the same factor as in the full year;

- -17 -


•	Saudi Arabia, down by 14.9%, notably reflecting sales disruptions of competitors' products related to the implementation of digital tax stamps and plain packaging; and


•	Turkey, down by 15.9%, mainly reflecting a higher prevalence of illicit trade related to cut tobacco, following two price increases in 2019;

partly offset by


•	Algeria, up by 9.8%, partly reflecting the same factor as in the full year.

PMI's total shipment volume decreased by 8.6% to 33.2 billion units, notably due to:


•	Turkey, down by 19.5%, mainly reflecting the lower total market and lower market share;

partly offset by


•	PMI Duty Free, up by 8.5%. Excluding the net favorable impact of estimated distributor inventory movements, primarily of cigarettes, PMI's in-market sales declined by 3.9%, mainly reflecting lower market share; and


•	Saudi Arabia, up by 21.9%. Excluding the net favorable impact of estimated distributor inventory movements of 0.4 billion cigarettes, mainly attributable to the same factor as in the full year, PMI's in-market sales grew by 2.9%, mainly driven by higher market share (partly reflecting sales disruptions of competitors' products), partially offset by the lower total market.

SOUTH & SOUTHEAST ASIA REGION

Full-Year



Financial Summary - Years Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
Financial Summary - Years Ended December 31,	2019		2018		Total		Excl. Curr.		Total		Cur- rency		Price	Vol/ Mix		Cost/ Other
(in millions)	2019		2018		Total		Excl. Curr.		Total		Cur- rency		Price	Vol/ Mix		Cost/ Other
Net Revenues	$ 5,094		$ 4,656		9.4	%	9.6	%	438		(10	)	583	(135	)	—

Operating Income	$ 2,163		$ 1,747		23.8	%	22.8	%	416		17		583	(99	)	(85	)
Asset Impairment & Exit Costs ⁽¹⁾	(20	)	—		—	%	—	%	(20	)	—		—	—		(20	)
Adjusted Operating Income	$ 2,183		$ 1,747		25.0	%	24.0	%	436		17		583	(99	)	(65	)

Adjusted Operating Income Margin	42.9	%	37.5	%	5.4pp		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: a favorable pricing variance, principally driven by Indonesia and the Philippines, partly offset by unfavorable volume/mix, largely due to Indonesia, partly offset by favorable volume in India and Thailand, as well as favorable mix in the Philippines.

Operating income, excluding favorable currency, increased by 22.8%. Excluding asset impairment and exit costs related to a plant closure in Pakistan in the first quarter of 2019, adjusted operating income, excluding favorable currency, increased by 24.0%, mainly reflecting: a favorable pricing variance and lower manufacturing costs, partly offset by unfavorable volume/mix, reflecting the same factors as for net revenues noted above, and higher marketing, administration and research costs, partly due to the Philippines.

Adjusted operating income margin, excluding currency, increased by 4.9 points to 42.4%, as detailed in Schedule 8.

- -18 -

Fourth-Quarter



Financial Summary - Quarters Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
Financial Summary - Quarters Ended December 31,	2019		2018		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix		Cost/ Other
(in millions)	2019		2018		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix		Cost/ Other
Net Revenues	$ 1,487		$ 1,222		21.7	%	16.1	%	265	68	270	(73	)	—

Operating Income	$ 692		$ 423		63.6	%	53.7	%	269	42	270	(58	)	15
Asset Impairment & Exit Costs	—		—		—	%	—	%	—	—	—	—		—
Adjusted Operating Income	$ 692		$ 423		63.6	%	53.7	%	269	42	270	(58	)	15

Adjusted Operating Income Margin	46.5	%	34.6	%	11.9pp		11.2pp

Net revenues, excluding favorable currency, increased by 16.1%, reflecting a favorable pricing variance, principally driven by Indonesia and the Philippines, partly offset by unfavorable volume/mix, mainly due to Indonesia.

Operating income, excluding favorable currency, increased by 53.7%, reflecting a favorable pricing variance and lower manufacturing costs, partly offset by unfavorable volume/mix, principally due to Indonesia.

Adjusted operating income margin, excluding currency, increased by 11.2 points to 45.8%, as detailed in Schedule 8.

Total Market, PMI Shipment & Market Share Commentaries



PMI Shipment Volume	Fourth-Quarter				Full-Year
(million units)	2019	2018	Change		2019	2018	Change
Cigarettes	44,704	47,623	(6.1	)%	174,934	178,469	(2.0	)%
Heated Tobacco Units	—	—	—	%	—	—	—	%
Total South & Southeast Asia	44,704	47,623	(6.1	)%	174,934	178,469	(2.0	)%

Full-Year

The estimated total market in South & Southeast Asia decreased by 1.2% to 738.1 billion units, notably due to:


•	Pakistan, down by 14.0%, mainly reflecting the impact of excise tax-driven price increases;


•	the Philippines, down by 3.7%, primarily reflecting the impact of price increases in the below premium segment in the fourth quarter of 2018, as well as price increases in the third quarter of 2019; and


•	Vietnam, down by 5.2%, mainly reflecting the impact of excise tax-driven price increases;

partly offset by


•	Indonesia, up by 1.1%, reflecting the absence of an excise tax increase in 2019; and


•	Thailand, up by 5.8%, primarily reflecting on-going recovery from the September 2017 excise tax reform.

PMI's Regional market share decreased by 0.1 point to 23.7%.

PMI's total shipment volume decreased by 2.0% to 174.9 billion units, notably due to:


•	Indonesia, down by 2.9%, mainly reflecting lower market share, primarily due to the widened retail price gap of Sampoerna A to competitive brands following its price increase in October 2018, partly offset by the higher total market;

- -19 -


•	Pakistan, down by 8.6%, mainly reflecting the lower total market, partly offset by higher market share driven by favorable retail price gaps with competitors' brands; and


•	the Philippines, down by 2.9%, mainly reflecting the lower total market, partly offset by higher market share, notably of Marlboro;

partly offset by


•	Thailand, up by 18.0%, mainly reflecting higher market share, driven by the continued strong performance of L&M 7.1 and the favorable impact of distribution expansion in 2018, as well as the higher total market.

Fourth-Quarter

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


•	Pakistan, down by 26.2%, mainly due to the same factor as in the full year; and


•	the Philippines, down by 13.5%, mainly due to the same factor as in the full year;

partly offset by


•	Indonesia, up by 3.1%, partly reflecting estimated trade inventory movements in anticipation of the January 2020 excise tax increase.

PMI's total shipment volume decreased by 6.1% to 44.7 billion units, notably due to:


•	Indonesia, down by 2.0%, mainly reflecting the same factors as in the full year;


•	Pakistan, down by 29.2%, mainly reflecting the lower total market; and


•	the Philippines, down by 14.0%, mainly reflecting the lower total market;

partly offset by


•	Thailand, up by 11.7%, mainly reflecting higher market share, driven by the continued strong performance of L&M 7.1 and the favorable impact of distribution expansion in 2018.

EAST ASIA & AUSTRALIA REGION

Full-Year



Financial Summary - Years Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
Financial Summary - Years Ended December 31,	2019		2018		Total		Excl. Curr.		Total		Cur- rency		Price	Vol/ Mix		Cost/ Other
(in millions)	2019		2018		Total		Excl. Curr.		Total		Cur- rency		Price	Vol/ Mix		Cost/ Other
Net Revenues	$ 5,364		$ 5,580		(3.9	)%	(3.4	)%	(216	)	(26	)	230	(420	)	—

Operating Income	$ 1,932		$ 1,851		4.4	%	2.4	%	81		37		230	(292	)	106
Asset Impairment & Exit Costs	—		—		—	%	—	%	—		—		—	—		—
Adjusted Operating Income	$ 1,932		$ 1,851		4.4	%	2.4	%	81		37		230	(292	)	106

Adjusted Operating Income Margin	36.0	%	33.2	%	2.8pp		2.0pp

Net revenues, excluding unfavorable currency, decreased by 3.4%, reflecting: unfavorable volume/mix, mainly due to lower cigarette volume in Australia, Japan and Korea, lower IQOS device volume in Japan, and lower heated tobacco unit volume and IQOS device volume in Korea, partly offset by higher heated tobacco unit volume in Japan.

- -20 -

The unfavorable volume/mix was partly offset by a favorable pricing variance, predominantly driven by Australia and Japan.

Operating income, excluding favorable currency, increased by 2.4%, mainly reflecting: a favorable pricing variance and lower manufacturing costs, primarily related to Japan and Korea, partly offset by unfavorable volume/mix, mainly reflecting the same drivers as for net revenues noted above, as well as higher marketing, administration and research costs.

Adjusted operating income margin, excluding currency, increased by 2.0 points to 35.2%, as detailed in Schedule 8.

Fourth-Quarter



Financial Summary - Quarters Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
Financial Summary - Quarters Ended December 31,	2019		2018		Total		Excl. Curr.		Total		Cur- rency	Price	Vol/ Mix		Cost/ Other
(in millions)	2019		2018		Total		Excl. Curr.		Total		Cur- rency	Price	Vol/ Mix		Cost/ Other
Net Revenues	$ 1,270		$ 1,345		(5.6	)%	(5.6	)%	(75	)	—	44	(119	)	—

Operating Income	$ 412		$ 412		—	%	(1.0	)%	—		4	44	(102	)	54
Asset Impairment & Exit Costs	—		—		—	%	—	%	—		—	—	—		—
Adjusted Operating Income	$ 412		$ 412		—	%	(1.0	)%	—		4	44	(102	)	54

Adjusted Operating Income Margin	32.4	%	30.6	%	1.8pp		1.5pp

Net revenues, excluding currency, decreased by 5.6%, reflecting: unfavorable volume/mix, mainly due to lower cigarette volume in Australia and Japan, lower IQOS device volume in Japan, and lower heated tobacco unit and IQOS device volume in Korea, partly offset by higher heated tobacco unit volume in Japan. The unfavorable volume/mix was partly offset by a favorable pricing variance, mainly driven by Australia.

Operating income, excluding favorable currency, decreased by 1.0%, mainly reflecting unfavorable volume/mix, mainly due to lower cigarette volume in Australia and Japan, and lower heated tobacco unit volume in Korea, partly offset by higher heated tobacco unit volume in Japan. The unfavorable volume/mix was partly offset by a favorable pricing variance, as well as lower manufacturing costs and lower marketing, administration and research costs, principally in Japan.

Adjusted operating income margin, excluding currency, increased by 1.5 points to 32.1%, as detailed in Schedule 8.

Total Market, PMI Shipment & Market Share Commentaries



PMI Shipment Volume	Fourth-Quarter				Full-Year
(million units)	2019	2018	Change		2019	2018	Change
Cigarettes	11,301	12,772	(11.5	)%	49,951	56,163	(11.1	)%
Heated Tobacco Units	7,424	7,111	4.4	%	30,677	26,866	14.2	%
Total East Asia & Australia	18,725	19,883	(5.8	)%	80,628	83,029	(2.9	)%

- -21 -

Full-Year

The estimated total market in East Asia & Australia, excluding China, decreased by 4.0% to 299.2 billion units, notably due to:


•	Australia, down by 5.9%, or by 8.9% excluding the impact of estimated trade inventory movements, mainly reflecting the impact of excise tax-driven retail price increases;


•	Japan, down by 5.6%, mainly reflecting the impact of the October 1, 2018 excise tax-driven retail price increases, as well as out-switching to the cigarillo category;


•	Korea, down by 1.4%, reflecting the secular decline of the cigarette category, partly offset by the growth of the heat-not-burn category; and


•	Taiwan, down by 1.9%, continuing to reflect the impact of significant excise tax-driven retail price increases in June 2017, as well as an increase in the prevalence of illicit trade.

PMI's Regional market share, excluding China, decreased by 0.5 points to 26.9%.

PMI's total shipment volume decreased by 2.9% to 80.6 billion units, notably in:


•	Korea, down by 11.1%, principally due to lower cigarette and heated tobacco unit market share, as well as the lower total market;

partly offset by

•

Japan, up by 0.3%, reflecting the net favorable impact of estimated distributor inventory movements of approximately 2.6 billion units (comprised of approximately 3.4 billion heated tobacco units, partially offset by approximately 0.8 billion cigarettes), mainly due to a favorable comparison with 2018 in which IQOS consumable inventories in Japan were reduced. Excluding the impact of these inventory movements, PMI's in-market sales declined by 4.2%, primarily reflecting the lower total market, partly offset by higher heated tobacco unit market share.

Fourth-Quarter

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


•	Japan, up by 2.4%. Excluding the impact of estimated trade inventory movements, the total market was down by 6.5%, mainly reflecting out-switching to the cigarillo category, as well as the impact of tax-driven retail price increases; and


•	Taiwan, up by 8.0%. Excluding the impact of estimated trade inventory movements, the total market was down by 8.7%, reflecting the same factors as in the full year;

partly offset by


•	Australia, down by 11.0%, or by 7.3% excluding the impact of estimated trade inventory movements, mainly reflecting the same factor as in the full year; and


•	Korea, down by 1.4%, or essentially flat excluding the net unfavorable impact of estimated trade inventory movements.

PMI's total shipment volume decreased by 5.8% to 18.7 billion units, notably in:


•	Japan, down by 3.0%, reflecting the net unfavorable impact of estimated distributor inventory movements of approximately 1.4 billion units (comprised of approximately 1.0 billion cigarettes and approximately 0.4 billion heated tobacco units), mainly due to lower cigarette demand related to adult smoker out-switching to heated

- -22 -

tobacco and the cigarillo category. Excluding the impact of these inventory movements, PMI's in-market sales increased by 8.3%, driven by higher heated tobacco unit market share; and


•	Korea, down by 14.5%, mainly due to the same factors as in the full year.

LATIN AMERICA & CANADA REGION

Full-Year



Financial Summary - Years Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
Financial Summary - Years Ended December 31,	2019		2018		Total		Excl. Curr.		Total		Cur- rency		Price	Vol/ Mix		Cost/ Other⁽¹⁾
(in millions)	2019		2018		Total		Excl. Curr.		Total		Cur- rency		Price	Vol/ Mix		Cost/ Other⁽¹⁾
Net Revenues	$ 2,206		$ 3,056		(27.8	)%	(25.6	)%	(850	)	(68	)	90	(113	)	(759	)

Operating Income	$ 235		$ 1,145		(79.5	)%	(80.7	)%	(910	)	14		90	(89	)	(925	)
Asset Impairment & Exit Costs ⁽²⁾	(60	)	—		—	%	—	%	(60	)	—		—	—		(60	)
Canadian Tobacco Litigation-Related Expense ⁽²⁾	(194	)	—		—	%	—	%	(194	)	—		—	—		(194	)
Loss on Deconsolidation of RBH ⁽²⁾	(239	)	—		—	%	—	%	(239	)	—		—	—		(239	)
Adjusted Operating Income	$ 728		$ 1,145		(36.4	)%	(37.6	)%	(417	)	14		90	(89	)	(432	)

Adjusted Operating Income Margin	33.0	%	37.5	%	(4.5)pp		(6.1)pp
⁽¹⁾ Unfavorable 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 25.6%, predominantly due to the unfavorable impact of the deconsolidation of RBH, shown in "Cost/Other." On a like-for-like basis, net revenues, excluding unfavorable currency, decreased by 1.9%, as detailed in Schedule 10, reflecting: unfavorable volume/mix, mainly due to lower cigarette volume in Argentina and Canada, partly offset by a favorable pricing variance, notably in Brazil, Canada, Colombia and Mexico, partially offset by Argentina, mainly due to the adoption of highly inflationary accounting.

Operating income, excluding favorable currency, decreased by 80.7%, predominantly due to the unfavorable impact of the deconsolidation of RBH and reporting adjustments, shown in "Cost/Other." Excluding asset impairment and exit costs related to plant closures in Argentina and Colombia, the Canadian tobacco litigation-related expense and the loss on deconsolidation of RBH, adjusted operating income, excluding favorable currency, decreased by 37.6%. On a like-for-like basis, excluding favorable currency, adjusted operating income increased by 18.0%, as detailed in Schedule 10. This increase reflected: a favorable pricing variance, lower manufacturing costs and lower marketing, administration and research costs, partially offset by an unfavorable volume/mix, mainly due to lower cigarette volume in Argentina and Canada.

Adjusted operating income margin, excluding currency, decreased by 6.1 points to 31.4%, as detailed in Schedule 8, or increased by 5.3 points to 31.4% on a like-for-like basis, as detailed in Schedule 10.

- -23 -

Fourth-Quarter



Financial Summary - Quarters Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
Financial Summary - Quarters Ended December 31,	2019		2018		Total		Excl. Curr.		Total		Cur- rency		Price	Vol/ Mix		Cost/ Other⁽¹⁾
(in millions)	2019		2018		Total		Excl. Curr.		Total		Cur- rency		Price	Vol/ Mix		Cost/ Other⁽¹⁾
Net Revenues	$ 554		$ 788		(29.7	)%	(28.6	)%	(234	)	(9	)	46	(22	)	(249	)

Operating Income	$ 135		$ 279		(51.6	)%	(53.0	)%	(144	)	4		46	(12	)	(182	)
Asset Impairment & Exit Costs ⁽²⁾	(15	)	—		—	%	—	%	(15	)	—		—	—		(15	)
Adjusted Operating Income	$ 150		$ 279		(46.2	)%	(47.7	)%	(129	)	4		46	(12	)	(167	)

Adjusted Operating Income Margin	27.1	%	35.4	%	(8.3)pp		(9.5)pp
⁽¹⁾ Unfavorable 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 28.6%, almost entirely due to the unfavorable impact of the deconsolidation of RBH shown in "Cost/Other." On a like-for-like basis, net revenues, excluding unfavorable currency, increased by 1.4%, as detailed in Schedule 10, reflecting a favorable pricing variance, driven by Mexico, partly offset by unfavorable cigarette volume, notably in Argentina.

Operating income, excluding favorable currency, decreased by 53.0%, predominantly due to the unfavorable impact of the deconsolidation of RBH, shown in "Cost/Other." Excluding asset impairment and exit costs related to a plant closure in Argentina, adjusted operating income, excluding favorable currency, decreased by 47.7%. On a like-for-like basis, excluding favorable currency, adjusted operating income increased by 31.3%, as detailed in Schedule 10, reflecting a favorable pricing variance, partly offset by unfavorable cigarette volume, notably in Argentina.

Adjusted operating income margin, excluding currency, decreased by 9.5 points to 25.9%, as detailed in Schedule 8, or increased by 6.0 points to 26.2% on a like-for-like basis, as detailed in Schedule 10.

Total Market, PMI Shipment & Market Share Commentaries



PMI Shipment Volume	Fourth-Quarter				Full-Year
(million units)	2019	2018	Change		2019	2018	Change
Cigarettes	19,387	21,909	(11.5	)%	72,293	80,738	(10.5	)%
Heated Tobacco Units	97	49	98.0	%	299	147	+100.0%
Total Latin America & Canada	19,484	21,958	(11.3	)%	72,592	80,885	(10.3	)%

Full-Year

The estimated total market in Latin America & Canada decreased by 4.3% to 194.1 billion units, notably due to:


•	Argentina, down by 4.6%, primarily due to the impact of cumulative price increases and the impact of the economic downturn as of the second half of 2018;


•	Canada, down by 7.7%, primarily due to the impact of cumulative price increases, as well as the growing prevalence of e-vapor products; and

- -24 -


•	Venezuela, down by 61.6%, mainly reflecting the deterioration of the socioeconomic environment and the impact of inflation-driven price increases.

PMI's Regional market share decreased by 0.4 points to 36.9%.

PMI's total shipment volume decreased by 10.3% to 72.6 billion units, or by 5.2% on a like-for-like basis, notably due to:


•	Argentina, down by 9.4%, primarily reflecting the lower total market, as well as lower market share; and


•	Venezuela, down by 74.8%, primarily reflecting the lower total market.

Fourth-Quarter

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


•	Argentina, down by 4.8%, primarily due to the same factors as in the full year;


•	Canada, down by 4.5%, primarily due to the same factors as in the full year, partly offset by the favorable impact of estimated trade inventory movements for the competition ahead of the implementation of plain packaging on November 9, 2019; and


•	Venezuela, down by 75.9%, mainly reflecting the same factors as in the full year.

PMI's total shipment volume decreased by 11.3% to 19.5 billion units, or by 5.2% on a like-for-like basis, notably due to:


•	Argentina, down by 13.1%, primarily reflecting the same factors as in the full year.

- -25 -

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 United States. In addition, PMI ships a version of its IQOS Platform 1 device and its consumables authorized by the U.S. Food and Drug Administration to Altria Group, Inc. for sale in the United States under license. 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 IQOS product portfolio includes heat-not-burn and nicotine-containing vapor products. As of December 31, 2019, PMI estimates that approximately 9.7 million adult smokers around the world have already stopped smoking and switched to PMI's heat-not-burn product, available for sale in 52 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 products and exposure to environmental tobacco smoke; litigation related to tobacco use; 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 September 30, 2019. PMI cautions that the foregoing list of important factors is not a

- -26 -

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.

- -27 -

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.


•	"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, which accounted for approximately 40% of RBH's total shipment volume in 2018.

•

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.


•	"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.

- -28 -

•

"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 the Russia excise & VAT audit charge); 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.

•

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. For example, PMI’s adjusted diluted EPS and other impacted results reflect the loss on deconsolidation of RBH and the Canadian tobacco litigation-related expense, recorded in the first quarter of 2019, and the Russia excise & VAT charge, recorded in the third quarter of 2019. PMI believes that the adjusted 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 fourth-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.


•	"Heated tobacco units," or "HTUs," is the term PMI uses to refer to heated tobacco consumables, which include the company's HEETS, HEETS Marlboro and HEETS FROM MARLBORO, defined collectively as HEETS, as well as Marlboro HeatSticks and Parliament HeatSticks.


•	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.

- -29 -


•	“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.


•	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.

- -30 -



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

	Quarters Ended December 31,
Market	Total Market, bio units				PMI Shipments, bio units												PMI Market Share, % ⁽¹⁾
	Total Market, bio units				Total				Cigarette				HTU				Total				HTU
	2019	2018	% Change		2019	2018	% Change		2019	2018	% Change		2019	2018	% Change		2019	2018	pp Change		2019	2018	pp Change

Total	684.8	701.0	(2.3	)	192.2	202.4	(5.0	)	175.1	190.2	(8.0	)	17.1	12.2	40.7		28.4	28.6	(0.2	)	2.4	1.6	0.8

European Union
France	8.8	9.8	(10.3	)	3.9	4.4	(12.2	)	3.8	4.4	(12.7	)	—	—	—		45.1	46.3	(1.2	)	0.3	0.2	0.1
Germany	18.2	19.0	(4.5	)	7.1	7.5	(5.5	)	6.8	7.4	(7.6	)	0.3	0.1	+100		39.0	39.4	(0.4	)	1.6	0.8	0.8
Italy	16.8	16.9	(0.5	)	8.3	8.7	(4.0	)	7.2	8.1	(10.2	)	1.1	0.6	80.9		52.3	52.0	0.3		6.1	3.3	2.8
Poland	10.8	10.1	7.3		4.5	4.2	7.9		4.1	4.0	1.8		0.4	0.1	+100		41.5	41.3	0.2		3.8	1.5	2.3
Spain	10.9	10.9	0.2		3.1	3.0	3.4		3.0	3.0	1.8		0.1	0.1	97.2		30.7	31.8	(1.1	)	0.8	0.5	0.3

Eastern Europe
Russia	58.4	61.7	(5.3	)	19.2	19.3	(0.5	)	15.4	17.5	(12.2	)	3.8	1.8	+100		31.2	29.6	1.6		5.0	1.7	3.3

Middle East & Africa
Saudi Arabia	4.6	5.4	(14.9	)	2.6	2.1	21.9		2.6	2.1	21.9		—	—	—		51.6	42.7	8.9		—	—	—
Turkey	25.5	30.3	(15.9	)	11.4	14.1	(19.5	)	11.4	14.1	(19.5	)	—	—	—		44.9	46.6	(1.7	)	—	—	—

South & Southeast Asia
Indonesia	83.4	80.9	3.1		26.4	26.9	(2.0	)	26.4	26.9	(2.0	)	—	—	—		31.6	33.3	(1.7	)	—	—	—
Philippines	17.8	20.6	(13.5	)	12.5	14.5	(14.0	)	12.5	14.5	(14.0	)	—	—	—		69.9	70.3	(0.4	)	—	—	—

East Asia & Australia
Australia	2.8	3.1	(11.0	)	0.8	1.0	(21.8	)	0.8	1.0	(21.8	)	—	—	—		27.2	31.0	(3.8	)	—	—	—
Japan	37.8	36.9	2.4		11.9	12.3	(3.0	)	5.7	6.7	(15.2	)	6.3	5.7	11.4		34.9	33.0	1.9		17.6	15.2	2.4
Korea	16.9	17.1	(1.4	)	3.7	4.3	(14.5	)	2.6	2.8	(8.4	)	1.1	1.4	(26.4	)	21.7	25.3	(3.6	)	6.3	8.5	(2.2	)

Latin America & Canada
Argentina	8.7	9.1	(4.8	)	5.8	6.6	(13.1	)	5.8	6.6	(13.1	)	—	—	—		66.4	73.2	(6.8	)	—	—	—
Mexico	10.4	10.1	2.5		7.3	7.3	(0.1	)	7.3	7.3	(0.2	)	—	—	—		70.0	71.8	(1.8	)	0.1	—	0.1

(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

	Years Ended December 31,
Market	Total Market, bio units				PMI Shipments, bio units												PMI Market Share, % ⁽¹⁾
	Total Market, bio units				Total				Cigarette				HTU				Total				HTU
	2019	2018	% Change		2019	2018	% Change		2019	2018	% Change		2019	2018	% Change		2019	2018	pp Change		2019	2018	pp Change

Total	2,703.6	2,757.7	(2.0	)	766.4	781.7	(2.0	)	706.7	740.3	(4.5	)	59.7	41.4	44.2		28.4	28.3	0.1		2.2	1.6	0.6

European Union
France	37.9	40.9	(7.4	)	17.0	18.5	(7.9	)	16.9	18.4	(8.2	)	0.1	—	—		45.0	45.5	(0.5	)	0.2	0.1	0.1
Germany	73.3	75.2	(2.5	)	27.9	28.1	(0.7	)	27.0	27.7	(2.5	)	0.9	0.4	+100		38.0	37.3	0.7		1.2	0.5	0.7
Italy	67.9	69.0	(1.5	)	34.9	35.2	(1.1	)	31.4	33.5	(6.5	)	3.5	1.7	+100		51.8	51.8	—		4.8	2.2	2.6
Poland	46.2	43.2	6.8		19.0	17.9	6.1		17.9	17.6	1.8		1.1	0.4	+100		41.2	41.5	(0.3	)	2.5	0.9	1.6
Spain	45.3	45.0	0.8		14.5	14.1	2.7		14.1	13.9	1.6		0.3	0.2	84.4		31.3	32.1	(0.8	)	0.7	0.4	0.3

Eastern Europe
Russia	226.5	238.9	(5.2	)	68.0	68.0	—		58.8	64.6	(9.0	)	9.2	3.4	+100		30.1	28.3	1.8		3.8	1.0	2.8

Middle East & Africa
Saudi Arabia	20.8	20.6	0.7		9.2	7.4	24.9		9.2	7.4	24.9		—	—	—		43.0	41.5	1.5		—	—	—
Turkey	118.9	118.5	0.3		51.9	55.0	(5.6	)	51.9	55.0	(5.6	)	—	—	—		43.7	46.4	(2.7	)	—	—	—

South & Southeast Asia
Indonesia	306.8	303.6	1.1		98.5	101.4	(2.9	)	98.5	101.4	(2.9	)	—	—	—		32.1	33.4	(1.3	)	—	—	—
Philippines	70.5	73.2	(3.7	)	49.7	51.2	(2.9	)	49.7	51.2	(2.9	)	—	—	—		70.5	69.9	0.6		—	—	—

East Asia & Australia
Australia	12.0	12.8	(5.9	)	3.3	3.8	(12.7	)	3.3	3.8	(12.7	)	—	—	—		27.5	29.7	(2.2	)	—	—	—
Japan	158.0	167.3	(5.6	)	52.4	52.3	0.3		26.6	30.8	(13.7	)	25.8	21.4	20.6		34.5	34.0	0.5		17.1	15.5	1.6
Korea	68.6	69.5	(1.4	)	15.5	17.4	(11.1	)	10.8	12.0	(9.7	)	4.6	5.4	(14.3	)	22.6	25.0	(2.4	)	6.8	7.8	(1.0	)

Latin America & Canada
Argentina	33.4	35.0	(4.6	)	23.3	25.8	(9.4	)	23.3	25.8	(9.4	)	—	—	—		70.0	73.8	(3.8	)	—	—	—
Mexico	35.5	35.5	(0.1	)	23.8	24.2	(1.4	)	23.8	24.2	(1.4	)	—	—	—		67.1	68.0	(0.9	)	—	—	—

(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 December 31,						Years Ended December 31,
		2019	2018			% Change		2019	2018			% Change
	Total Shipment Volume	192,207	202,413			(5.0	)%	766,361	781,687			(2.0	)%
	Shipment Volume for RBH-owned brands ⁽¹⁾		(1,413	)					(4,335	)	(2)
	Total Shipment Volume	192,207	201,000		(3)	(4.4	)%	766,361	777,352		(3)	(1.4	)%


	Latin America & Canada

	Total Shipment Volume	19,484	21,958			(11.3	)%	72,592	80,885			(10.3	)%
	Shipment Volume for RBH-owned brands		(1,399	)					(4,295	)	(2)
	Total Shipment Volume	19,484	20,559		(3)	(5.2	)%	72,592	76,590		(3)	(5.2	)%


	(1) Includes Duty Free sales in Canada
	(2) Represents volume for RBH-owned brands from March 22, 2018 through end of period date
	(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	Years Ended
	December 31,					Diluted EPS	December 31,
		$	1.04			2019 Diluted Earnings Per Share (1)		$	4.61
		$	1.23			2018 Diluted Earnings Per Share (1)		$	5.08
		$	(0.19		)	Change		$	(0.47		)
		(15.4			)%	% Change		(9.3			)%

						Reconciliation:
		$	1.23			2018 Diluted Earnings Per Share (1)		$	5.08
		—				2018 Asset impairment and exit costs		—
		0.02				2018 Tax items		0.02
		(0.20			)	2019 Asset impairment and exit costs		(0.23			)
		—				2019 Canadian tobacco litigation-related expense		(0.09			)
		—				2019 Loss on deconsolidation of RBH		(0.12			)
		—				2019 Russia excise and VAT audit charge		(0.20			)
		0.02				2019 Fair value adjustment for equity security investments		0.02
		—				2019 Tax items		0.04
		—				Currency		(0.13			)
		(0.01			)	Interest		0.04
		(0.07			)	Change in tax rate		(0.04			)
		0.05				Operations (2)		0.22
		$	1.04			2019 Diluted Earnings Per Share (1)		$	4.61

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

	Quarters Ended						Years Ended
	December 31,						December 31,
	2019			2018			2019			2018
	$ 1,616			$ 1,910		Net Earnings attributable to PMI	$ 7,185			$ 7,911
	4			3		Less distributed and undistributed earnings attributable to share-based payment awards	17			16
	$ 1,612			$ 1,907		Net Earnings for basic and diluted EPS	$ 7,168			$ 7,895

	1,556			1,555		Weighted-average shares for basic EPS	1,555			1,555
	1			—		Plus Contingently Issuable Performance Stock Units	1			—
	1,557			1,555		Weighted-average shares for diluted EPS	1,556			1,555

(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 December 31,						Years Ended December 31,
	2019		2018	% Change			2019		2018	% Change
	$ 1.04		$ 1.23	(15.4	)%	Reported Diluted EPS	$ 4.61		$ 5.08	(9.3	)%
	—					Currency	(0.13	)
	$ 1.04		$ 1.23	(15.4	)%	Reported Diluted EPS, excluding Currency	$ 4.74		$ 5.08	(6.7	)%


	Quarters Ended December 31,						Years Ended December 31,
	2019		2018	% Change			2019		2018	% Change
	$ 1.04		$ 1.23	(15.4	)%	Reported Diluted EPS	$ 4.61		$ 5.08	(9.3	)%
	0.20		—			Asset impairment and exit costs	0.23		—
	—		—			Canadian tobacco litigation-related expense	0.09		—
	—		—			Loss on deconsolidation of RBH	0.12		—
	—		—			Russia excise and VAT audit charge	0.20		—
	(0.02	)	—			Fair value adjustment for equity security investments	(0.02	)	—
	—		0.02			Tax items	(0.04	)	0.02
	$ 1.22		$ 1.25	(2.4	)%	Adjusted Diluted EPS	$ 5.19		$ 5.10	1.8	%
	—					Currency	(0.13	)
	$ 1.22		$ 1.25	(2.4	)%	Adjusted Diluted EPS, excluding Currency	$ 5.32		$ 5.10	4.3	%



																				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				Quarter Ended
		March 31,		June 30,		June 30,			September 30,		September 30,			December 31,		December 31,				March 31,
		2018		2018		2018			2018		2018			2018		2018				2019
	Reported Diluted EPS	$ 1.00		$ 1.41		$ 2.41			$ 1.44		$ 3.85			$ 1.23		$	5.08			$ 0.87
	Asset impairment and exit costs	—		—		—			—		—			—		—				0.01
	Canadian tobacco litigation-related expense	—		—		—			—		—			—		—				0.09
	Loss on deconsolidation of RBH	—		—		—			—		—			—		—				0.12
	Tax items	—		—		—			—		—			0.02		0.02				—
	Adjusted Diluted EPS	$ 1.00		$ 1.41		$ 2.41			$ 1.44		$ 3.85			$ 1.25		$ 5.10				$ 1.09	(3)
	Net earnings attributable to RBH	—	(1)	(0.08	)	(0.08	)	(1)	(0.09	)	(0.18	)	(1)	(0.08	)	(0.26		)	(1)	—	(2)
	Pro Forma Adjusted Diluted EPS	$ 1.00		$ 1.33		$ 2.33			$ 1.35		$ 3.67			$ 1.17		$ 4.84

	(1) Represents the impact of net earnings attributable to RBH from March 22, 2018 through end of period date
	(2) Represents the impact of net earnings attributable to RBH from March 22, 2019 through end of period date
	(3) Includes approximately $0.06 per share 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 December 31,	Net Revenues	Total		Excluding Currency		Excluding Currency & Acquisitions

2019						Combustible Products	2018	% Change
$ 1,954	$ (85)		$ 2,039	—	$ 2,039	European Union	$ 2,051	(4.7	)%	(0.6	)%	(0.6	)%
663	17		646	—	646	Eastern Europe	671	(1.1	)%	(3.7	)%	(3.7	)%
910	10		900	—	900	Middle East & Africa	919	(1.0	)%	(2.1	)%	(2.1	)%
1,487	68		1,419	—	1,419	South & Southeast Asia	1,222	21.7	%	16.1	%	16.1	%
619	(7	)	626	—	626	East Asia & Australia	726	(14.7	)%	(13.8	)%	(13.8	)%
546	(9	)	554	—	554	Latin America & Canada	783	(30.4	)%	(29.3	)%	(29.3	)%
$ 6,179	$ (4)		$ 6,184	—	$ 6,184	Total Combustible	$ 6,373	(3.0	)%	(3.0	)%	(3.0	)%

2019						Reduced-Risk Products	2018	% Change
$ 482	$ (21)		$ 503	—	$ 503	European Union	$ 289	67.0	%	74.4	%	74.4	%
319	12		307	—	307	Eastern Europe	145	+100%		+100%		+100%
74	2		72	—	72	Middle East & Africa	69	7.4	%	4.6	%	4.6	%
—	—		—	—	—	South & Southeast Asia	—	—	%	—	%	—	%
651	7		644	—	644	East Asia & Australia	619	5.1	%	4.1	%	4.1	%
8	—		9	—	9	Latin America & Canada⁽¹⁾	5	85.5	%	92.8	%	92.8	%
$ 1,534	$ (2)		$ 1,535	—	$ 1,535	Total RRPs	$ 1,126	36.2	%	36.3	%	36.3	%

2019						PMI	2018	% Change
$ 2,436	$ (106)		$ 2,542	—	$ 2,542	European Union	$ 2,340	4.1	%	8.6	%	8.6	%
982	29		953	—	953	Eastern Europe	816	20.3	%	16.8	%	16.8	%
984	12		972	—	972	Middle East & Africa	988	(0.4	)%	(1.6	)%	(1.6	)%
1,487	68		1,419	—	1,419	South & Southeast Asia	1,222	21.7	%	16.1	%	16.1	%
1,270	—		1,270	—	1,270	East Asia & Australia	1,345	(5.6	)%	(5.6	)%	(5.6	)%
554	(9	)	563	—	563	Latin America & Canada	788	(29.7	)%	(28.6	)%	(28.6	)%
$ 7,713	$ (6)		$ 7,719	—	$ 7,719	Total PMI	$ 7,499	2.9	%	2.9	%	2.9	%

(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	Years Ended December 31,	Net Revenues	Total		Excluding Currency		Excluding Currency & Acquisitions

2019						Combustible Products	2018	% Change
$ 8,093	$ (465)		$ 8,558	—	$ 8,558	European Union	$ 8,433	(4.0	)%	1.5	%	1.5	%
2,438	(89	)	2,526	—	2,526	Eastern Europe	2,597	(6.1	)%	(2.7	)%	(2.7	)%
3,721	(161	)	3,882	—	3,882	Middle East & Africa	3,732	(0.3	)%	4.0	%	4.0	%
5,094	(10	)	5,104	—	5,104	South & Southeast Asia	4,656	9.4	%	9.6	%	9.6	%
2,693	(39	)	2,732	—	2,732	East Asia & Australia	3,074	(12.4	)%	(11.1	)%	(11.1	)%
2,179	(67	)	2,246	—	2,246	Latin America & Canada	3,037	(28.2	)%	(26.1	)%	(26.1	)%
$ 24,218	$ (831)		$ 25,049	—	$ 25,049	Total Combustible	$ 25,529	(5.1	)%	(1.9	)%	(1.9	)%

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⁽¹⁾	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	%

(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	Total		Excluding Currency		Excluding Currency & Acquisitions

2019							Quarters Ended December 31,	2018	% Change
$ 624	(1)	$ (69)		$ 693	—	$ 693	European Union	$ 1,009	(38.2	)%	(31.3	)%	(31.3	)%
263		33		230	—	230	Eastern Europe	220	19.5	%	4.5	%	4.5	%
380		15		365	—	365	Middle East & Africa	359	5.8	%	1.7	%	1.7	%
692		42		650	—	650	South & Southeast Asia	423	63.6	%	53.7	%	53.7	%
412		4		408	—	408	East Asia & Australia	412	—	%	(1.0	)%	(1.0	)%
135	(2)	4		131	—	131	Latin America & Canada	279	(51.6	)%	(53.0	)%	(53.0	)%
$ 2,506		$ 29		$ 2,477	—	$ 2,477	Total PMI	$ 2,702	(7.3	)%	(8.3	)%	(8.3	)%

2019							Years Ended December 31,	2018	% Change
$ 3,970	(1)	$ (330)		$ 4,300	—	$ 4,300	European Union	$ 4,105	(3.3	)%	4.8	%	4.8	%
547	(3)	23		524	—	524	Eastern Europe	902	(39.4	)%	(41.9	)%	(41.9	)%
1,684		(53	)	1,737	—	1,737	Middle East & Africa	1,627	3.5	%	6.8	%	6.8	%
2,163	(4)	17		2,146	—	2,146	South & Southeast Asia	1,747	23.8	%	22.8	%	22.8	%
1,932		37		1,895	—	1,895	East Asia & Australia	1,851	4.4	%	2.4	%	2.4	%
235	(5)	14		221	—	221	Latin America & Canada	1,145	(79.5	)%	(80.7	)%	(80.7	)%
$ 10,531		$ (292)		$ 10,823	—	$ 10,823	Total PMI	$ 11,377	(7.4	)%	(4.9	)%	(4.9	)%

(1) Includes asset impairment and exit costs ($342 million)
(2) Includes asset impairment and exit costs ($15 million)
(3) Includes the Russia excise and VAT audit charge ($374 million)
(4) Includes asset impairment and exit costs ($22 million)
(5) Includes asset impairment and exit costs ($60 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 and Others			Adjusted Operating Income	Currency		Adjusted Operating Income excluding Currency	Acqui-sitions	Adjusted Operating Income excluding Currency & Acqui-sitions			Operating Income	Asset Impairment & Exit Costs	Adjusted Operating Income	Total		Excluding Currency		Excluding Currency & Acqui-sitions

2019										Quarters Ended December 31,		2018			% Change
$ 624	$ (342)		(1)	$ 966	$ (69)		$ 1,035	—	$ 1,035		European Union	$ 1,009	—	$ 1,009	(4.3	)%	2.6	%	2.6	%
263	—			263	33		230	—	230		Eastern Europe	220	—	220	19.5	%	4.5	%	4.5	%
380	—			380	15		365	—	365		Middle East & Africa	359	—	359	5.8	%	1.7	%	1.7	%
692	—			692	42		650	—	650		South & Southeast Asia	423	—	423	63.6	%	53.7	%	53.7	%
412	—			412	4		408	—	408		East Asia & Australia	412	—	412	—	%	(1.0	)%	(1.0	)%
135	(15	)	(1)	150	4		146	—	146		Latin America & Canada	279	—	279	(46.2	)%	(47.7	)%	(47.7	)%
$ 2,506	$ (357)			$ 2,863	$ 29		$ 2,834	—	$ 2,834		Total PMI	$ 2,702	—	$ 2,702	6.0	%	4.9	%	4.9	%

2019										Years Ended December 31,		2018			% Change
$ 3,970	$ (342)		(1)	$ 4,312	$ (330)		$ 4,642	—	$ 4,642		European Union	$ 4,105	—	$ 4,105	5.0	%	13.1	%	13.1	%
547	(374	)	(2)	921	23		898	—	898		Eastern Europe	902	—	902	2.1	%	(0.4	)%	(0.4	)%
1,684	—			1,684	(53	)	1,737	—	1,737		Middle East & Africa	1,627	—	1,627	3.5	%	6.8	%	6.8	%
2,163	(20	)	(1)	2,183	17		2,166	—	2,166		South & Southeast Asia	1,747	—	1,747	25.0	%	24.0	%	24.0	%
1,932	—			1,932	37		1,895	—	1,895		East Asia & Australia	1,851	—	1,851	4.4	%	2.4	%	2.4	%
235	(493	)	(3)	728	14		714	—	714		Latin America & Canada	1,145	—	1,145	(36.4	)%	(37.6	)%	(37.6	)%
$ 10,531	$ (1,229)			$ 11,760	$ (292)		$ 12,052	—	$ 12,052		Total PMI	$ 11,377	—	$ 11,377	3.4	%	5.9	%	5.9	%

(1) Represents asset impairment and exit costs
(2) Represents the Russia excise and VAT audit charge
(3) Includes asset impairment and exit costs ($60 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

2019												Quarters Ended December 31,		2018				% Points Change
$ 966	$ 2,436	39.7	%	$ 1,035	$ 2,542	40.7	%	$ 1,035	$ 2,542	40.7	%		European Union	$ 1,009	$ 2,340	43.1	%	(3.4	)	(2.4	)	(2.4	)
263	982	26.8	%	230	953	24.1	%	230	953	24.1	%		Eastern Europe	220	816	27.0	%	(0.2	)	(2.9	)	(2.9	)
380	984	38.6	%	365	972	37.6	%	365	972	37.6	%		Middle East & Africa	359	988	36.3	%	2.3		1.3		1.3
692	1,487	46.5	%	650	1,419	45.8	%	650	1,419	45.8	%		South & Southeast Asia	423	1,222	34.6	%	11.9		11.2		11.2
412	1,270	32.4	%	408	1,270	32.1	%	408	1,270	32.1	%		East Asia & Australia	412	1,345	30.6	%	1.8		1.5		1.5
150	554	27.1	%	146	563	25.9	%	146	563	25.9	%		Latin America & Canada	279	788	35.4	%	(8.3	)	(9.5	)	(9.5	)
$ 2,863	$ 7,713	37.1	%	$ 2,834	$ 7,719	36.7	%	$ 2,834	$ 7,719	36.7	%		Total PMI	$ 2,702	$ 7,499	36.0	%	1.1		0.7		0.7

2019												Years Ended December 31,		2018				% Points Change
$ 4,312	$ 9,817	43.9	%	$ 4,642	$ 10,380	44.7	%	$ 4,642	$ 10,380	44.7	%		European Union	$ 4,105	$ 9,298	44.1	%	(0.2	)	0.6		0.6
921	3,282	28.1	%	898	3,390	26.5	%	898	3,390	26.5	%		Eastern Europe	902	2,921	30.9	%	(2.8	)	(4.4	)	(4.4	)
1,684	4,042	41.7	%	1,737	4,204	41.3	%	1,737	4,204	41.3	%		Middle East & Africa	1,627	4,114	39.5	%	2.2		1.8		1.8
2,183	5,094	42.9	%	2,166	5,104	42.4	%	2,166	5,104	42.4	%		South & Southeast Asia	1,747	4,656	37.5	%	5.4		4.9		4.9
1,932	5,364	36.0	%	1,895	5,390	35.2	%	1,895	5,390	35.2	%		East Asia & Australia	1,851	5,580	33.2	%	2.8		2.0		2.0
728	2,206	33.0	%	714	2,274	31.4	%	714	2,274	31.4	%		Latin America & Canada	1,145	3,056	37.5	%	(4.5	)	(6.1	)	(6.1	)
$ 11,760	$ 29,805	39.5	%	$ 12,052	$ 30,742	39.2	%	$ 12,052	$ 30,742	39.2	%		Total PMI	$ 11,377	$ 29,625	38.4	%	1.1		0.8		0.8

(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 December 31,							Years Ended December 31,
		2019		2018			% Change		2019		2018			% Change
	Net Revenues	$ 7,713		$ 7,499			2.9	%	$ 29,805		$ 29,625			0.6	%
	Net Revenues attributable to RBH			(236	)						(742	)	(1)
	Net Revenues	$ 7,713		$ 7,263		(2)	6.2	%	$ 29,805		$ 28,883		(2)	3.2	%
	Currency	(5	)						(937	)
	Net Revenues, ex. currency	$ 7,718		$ 7,263		(2)	6.3	%	$ 30,742		$ 28,883		(2)	6.4	%

	Operating Income	$ 2,506		$ 2,702			(7.3	)%	$ 10,531		$ 11,377			(7.4	)%
	Asset impairment and exit costs	(357	)	—					(422	)	—
	Canadian tobacco litigation-related expense	—		—					(194	)	—
	Loss on deconsolidation of RBH	—		—					(239	)	—
	Russia excise and VAT audit charge	—		—					(374	)	—
	Adjusted Operating Income	$ 2,863		$ 2,702			6.0	%	$ 11,760		$ 11,377			3.4	%
	Operating Income attributable to RBH			(168	)						(542	)	(1)
	Adjusted Operating Income	$ 2,863		$ 2,534		(2)	13.0	%	$ 11,760		$ 10,835		(2)	8.5	%
	Currency	28							(293	)
	Adjusted Operating Income, ex. currency	$ 2,835		$ 2,534		(2)	11.9	%	$ 12,053		$ 10,835		(2)	11.2	%

	Adjusted OI Margin	37.1	%	36.0	%		1.1		39.5	%	38.4	%		1.1
	Adjusted OI Margin attributable to RBH			(1.1	)						(0.9	)	(1)
	Adjusted OI Margin	37.1	%	34.9	%	(2)	2.2		39.5	%	37.5	%	(2)	2.0
	Currency	0.4							0.3
	Adjusted OI Margin, ex. currency	36.7	%	34.9	%	(2)	1.8		39.2	%	37.5	%	(2)	1.7

	Adjusted Diluted EPS ⁽³⁾	$ 1.22		$ 1.25			(2.4	)%	$ 5.19		$ 5.10			1.8	%
	Net earnings attributable to RBH			(0.08	)						(0.26	)	(1)
	Adjusted Diluted EPS	$ 1.22		$ 1.17		(2)	4.3	%	$ 5.19		$ 4.84		(2)	7.2	%
	Currency	—							(0.13	)
	Adjusted Diluted EPS, ex. currency	$ 1.22		$ 1.17		(2)	4.3	%	$ 5.32		$ 4.84		(2)	9.9	%

	(1) Represents the impact attributable to RBH from March 22, 2018 through end of period date
	(2) Pro forma
	(3) 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 December 31,							Years Ended December 31,
		2019		2018			% Change		2019		2018			% Change
	Net Revenues	$ 554		$ 788			(29.7	)%	$ 2,206		$ 3,056			(27.8	)%
	Net Revenues attributable to RBH			(234	)						(737	)	(1)
	Net Revenues	$ 554		$ 554		(2)	—	%	$ 2,206		$ 2,319		(2)	(4.9	)%
	Currency	(8	)						(68	)
	Net Revenues, ex. currency	$ 562		$ 554		(2)	1.4	%	$ 2,274		$ 2,319		(2)	(1.9	)%

	Operating Income	$ 135		$ 279			(51.6	)%	$ 235		$ 1,145			(79.5	)%
	Asset impairment and exit costs	(15	)	—					(60	)	—
	Canadian tobacco litigation-related expense	—		—					(194	)	—
	Loss on deconsolidation of RBH	—		—					(239	)	—
	Adjusted Operating Income	$ 150		$ 279			(46.2	)%	$ 728		$ 1,145			(36.4	)%
	Operating Income attributable to RBH			(167	)						(539	)	(1)
	Adjusted Operating Income	$ 150		$ 112		(2)	33.9	%	$ 728		$ 606		(2)	20.1	%
	Currency	3							13
	Adjusted Operating Income, ex. currency	$ 147		$ 112		(2)	31.3	%	$ 715		$ 606		(2)	18.0	%

	Adjusted OI Margin	27.1	%	35.4	%		(8.3	)	33.0	%	37.5	%		(4.5	)
	Adjusted OI Margin attributable to RBH			(15.2	)						(11.4	)	(1)
	Adjusted OI Margin	27.1	%	20.2	%	(2)	6.9		33.0	%	26.1	%	(2)	6.9
	Currency	0.9							1.6
	Adjusted OI Margin, ex. currency	26.2	%	20.2	%	(2)	6.0		31.4	%	26.1	%	(2)	5.3

	(1) Represents the impact attributable to RBH from March 22, 2018 through end of period date
	(2) Pro forma



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

	Quarters Ended December 31,						Years Ended December 31,
	2019		2018	Change Fav./(Unfav.)			2019		2018		Change Fav./(Unfav.)
	$ 19,849		$ 19,858	—	%	Revenues including Excise Taxes	$ 77,921		$ 79,823		(2.4	)%
	12,136		12,359	1.8	%	Excise Taxes on products	48,116		50,198		4.1	%
	7,713		7,499	2.9	%	Net Revenues	29,805		29,625		0.6	%
	2,778		2,781	0.1	%	Cost of sales	10,513		10,758		2.3	%
	4,935		4,718	4.6	%	Gross profit	19,292		18,867		2.3	%
	2,413		1,997	(20.8	)%	Marketing, administration and research costs (1)	8,695		7,408		(17.4	)%
	16		19			Amortization of intangibles	66		82
	2,506		2,702	(7.3	)%	Operating Income	10,531		11,377		(7.4	)%
	136		125	(8.8	)%	Interest expense, net	570		665		14.3	%
	28		22	(27.3	)%	Pension and other employee benefit costs	89		41		-(100)%
	2,342		2,555	(8.3	)%	Earnings before income taxes	9,872		10,671		(7.5	)%
	623		551	(13.1	)%	Provision for income taxes	2,293		2,445		6.2	%
	(63	)	1			Equity investments and securities (income)/loss, net	(149	)	(60	)
	1,782		2,003	(11.0	)%	Net Earnings	7,728		8,286		(6.7	)%
	166		93			Net Earnings attributable to noncontrolling interests	543		375
	$ 1,616		$ 1,910	(15.4	)%	Net Earnings attributable to PMI	$ 7,185		$ 7,911		(9.2	)%

						Per share data (2):
	$ 1.04		$ 1.23	(15.4	)%	Basic Earnings Per Share	$ 4.61		$ 5.08		(9.3	)%
	$ 1.04		$ 1.23	(15.4	)%	Diluted Earnings Per Share	$ 4.61		$ 5.08		(9.3	)%

(1) Year ended December 31, 2019 includes asset impairment and exit costs ($422 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 December 31, 2019 includes asset impairment and exit costs ($357 million).
(2) Net Earnings and weighted-average shares used in the basic and diluted Earnings Per Share computations for the quarters and for the year ended December 31, 2019 and 2018 are shown on Schedule 1, Footnote 1.



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

	December 31,				December 31,
	2019				2018
Assets
Cash and cash equivalents		$	6,861			$	6,593
All other current assets		13,653				12,849
Property, plant and equipment, net		6,631				7,201
Goodwill		5,858				7,189
Other intangible assets, net		2,113				2,278
Investments in unconsolidated subsidiaries and equity securities		4,635				1,269
Other assets		3,124				2,422
Total assets		$	42,875			$	39,801

Liabilities and Stockholders' (Deficit) Equity
Short-term borrowings		$	338			$	730
Current portion of long-term debt		4,051				4,054
All other current liabilities		14,444				12,407
Long-term debt		26,656				26,975
Deferred income taxes		908				898
Other long-term liabilities		6,077				5,476
Total liabilities		52,474				50,540

Total PMI stockholders' deficit		(11,577		)		(12,459		)
Noncontrolling interests		1,978				1,720
Total stockholders' (deficit) equity		(9,599		)		(10,739		)
Total liabilities and stockholders' (deficit) equity		$	42,875			$	39,801



					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 December 31, 2019				Year Ended December 31, 2018


Net Earnings		$	7,728			$	8,286
Equity investments and securities (income)/loss, net		(149		)		(60		)
Provision for income taxes		2,293				2,445
Interest expense, net		570				665
Depreciation and amortization		964				989
Asset impairment and exit costs and Others (1)		1,229				—
Adjusted EBITDA		$ 12,635				$	12,325

	December 31,				December 31,
	2019				2018
Short-term borrowings		$	338			$	730
Current portion of long-term debt		4,051				4,054
Long-term debt		26,656				26,975
Total Debt		$	31,045			$	31,759
Cash and cash equivalents		6,861				6,593
Net Debt		$	24,184			$	25,166

Ratios:
Total Debt to Adjusted EBITDA		2.46				2.58
Net Debt to Adjusted EBITDA		1.91				2.04

(1) 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 December 31,						Years Ended December 31,
	2019		2018	% Change			2019		2018	% Change
	$ 3,324		$ 2,422	37.2	%	Net cash provided by operating activities (1)	$ 10,090		$ 9,478	6.5	%
	(112	)				Currency	(972	)
	$ 3,436		$ 2,422	41.9	%	Net cash provided by operating activities, excluding currency	$ 11,062		$ 9,478	16.7	%

(1) Operating cash flow

Exhibit 99.2

Philip Morris International Inc.

2019 Fourth-Quarter and Full-Year Results Conference Call

February 6, 2020

NICK ROLLI


(SLIDE 1.)

Welcome. Thank you for joining us. Earlier today, we issued a press release containing detailed information on our 2019 fourth-quarter and full-year 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 our business transformation metrics 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 are presented on a "like-for-like" basis reflecting pro forma 2018 results, which have been adjusted for the deconsolidation of our Canadian subsidiary, Rothmans, Benson & Hedges, Inc. (RBH), effective March 22, 2019.


(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.

It’s now my pleasure to introduce André Calantzopoulos, our Chief Executive Officer. Martin King, our Chief Financial Officer, will join André for the question and answer session.

André.

ANDRE CALANTZOPOULOS


(SLIDE 4.)

Thank you, Nick, and welcome, ladies and gentlemen.

Our 2019 results continued to reflect strong underlying business performances from both our combustible and smoke-free portfolios. IQOS is performing strongly across a broad array of geographies and remains firmly on track to meet our 2021 HTU shipment volume target of 90-100 billion units. Meanwhile, our combustible business continues to perform well, underpinned by solid pricing.

We achieved several important milestones in our transformation to a smoke-free future. This notably included the authorization for a version of our IQOS product from the U.S. Food and Drug Administration through the pre-market tobacco product application pathway and the subsequent commercial launch in Atlanta and Richmond under our licensing agreement with Altria. IQOS is now commercially available in 52 markets worldwide.


(SLIDE 5.)

Let me now take you through the main elements of our full-year results, starting with volume.

Industry total volume for cigarettes and HTUs declined by 2.0%, broadly in line with the historical trend and slightly better than our prior forecast of around 2.5%.

Our shipment volume declined by 1.4%, in line with our previously communicated forecast decline of 1.0% to 1.5%. The outperformance of the industry was driven by HTU share gains of 0.6 points which helped offset cigarette declines, partly impacted by HTU cannibalization.


(SLIDE 6.)

Focusing on the fourth quarter, I would also like to highlight that while the effect of inventory movements across the year was small, the greater shipment volume decline of 4.4% in Q4, 2019 partly reflects unfavorable combustible cigarette inventory movements of 2.3 billion units compared to the prior year quarter, notably due to the EU Region and Japan. We anticipate a partial reversal of this effect in these geographies in the first quarter of 2020.

Fourth quarter in-market sales volumes declined by 3.1%. As previously anticipated in our Q3 remarks, this in-market sales decline primarily reflects the impact of recent pricing actions in Turkey and the Philippines:

•

In Turkey, our cigarette volume decline was due mainly to the impact of two price increases during the year, taken in April and August -- totaling five Turkish Lira per pack, or 44% -- which disproportionately impacted our share given the timing of our pricing vis-a-vis the competition, in addition to the industry decline. In Q4, 2019, our share improved on a sequential basis, but the total market was weak due to a rise in illicit cut tobacco consumption.


•	In the Philippines, our cigarette volume decline mainly reflected a lower total market in the immediate aftermath of industry price increases, though from a volume/mix perspective this was partly compensated by a strong share performance from Marlboro.


(SLIDE 7.)

Heated tobacco unit shipment volume increased by 44% to 60 billion units in 2019. This performance, including shipments of over 17 billion units in the fourth quarter, reflects broad-based growth across our launch markets, with notable contributions from the EU Region, Japan and Russia, and keeps us well on track to deliver our 2021 shipment volume target of 90-100 billion units.


(SLIDE 8.)

This excellent performance means that heated tobacco units now make up nearly 8% of our total shipment volumes, as compared to almost nothing in 2015. We expect this proportion to grow further as our positive momentum on RRPs continues.


(SLIDE 9.)

Turning to our 2019 financial results, net revenues increased by 6.4%, excluding currency, driven by strong pricing for our combustible tobacco portfolio and growth in heated tobacco units.


(SLIDE 10.)

RRP net revenues reached $5.6 billion, or close to 19% of PMI's total net revenues, with IQOS devices accounting for approximately $0.7 billion, or 13% of RRP net revenues. As highlighted previously, this lower proportion of device revenues primarily reflects favorable geographic mix of HTU volume, the longer lifespan of the latest IQOS devices and the impact of device retail price changes in select markets.


(SLIDE 11.)

We recorded a strong combustible tobacco pricing variance of 6.5% in 2019, better than our initial expectations for the year, helped by a broadly rational excise tax and competitive environment. There were notable contributions from Germany, Indonesia and Russia, in addition to the aforementioned pricing in the Philippines and Turkey. This was in line with the average historical variance since the 2008 spin.


(SLIDE 12.)

On a currency-neutral basis, adjusted operating income increased by 11.2%, while adjusted operating income margin grew by an excellent 170 basis points.

This margin expansion was driven by RRP scale effects and favorable geographic mix for HTUs. Additional drivers include pricing in combustibles and the impact of our cost initiatives, where we are firmly on track to reach over $1 billion of efficiencies by 2021, helping to finance growth investments behind RRPs.

To this point, we implemented all our $400 million planned incremental RRP investments in 2019, with the net increase in spend partly offset by higher efficiencies realized as part of our overall cost program.


(SLIDE 13.)

Adjusted diluted EPS increased strongly, growing by 9.9% excluding currency, and exceeding our prior forecast of around 9.5%.

As explained in our third-quarter results, the lower currency-neutral growth in adjusted diluted EPS compared to adjusted operating income reflects higher non-controlling interests and a higher like-for-like tax rate.


(SLIDE 14.)

Our strong operating cash flow of $10.1 billion increased by $0.6 billion, benefiting from a number of working capital initiatives and the timing of certain cash costs related to our Berlin factory optimization.

Capital expenditures of $0.9 billion came in slightly below our full-year assumption of around $1 billion, benefiting from production efficiencies.


(SLIDE 15.)

Turning now to market share, our total international share grew 0.1 point to 28.4%, with lower share for cigarettes, including the impact of cannibalization, more than offset by higher share for heated tobacco units, which reached 2.2%.

The share of our cigarette portfolio declined by 0.5 points, reflecting continued adult smoker out-switching to IQOS -- particularly in the EU Region and Japan -- coupled with lower share notably in Argentina, Indonesia, Korea, and Turkey.


(SLIDE 16.)

Further, despite this out-switching, Marlboro's share of the cigarette category increased by 0.3 points to an all-time high of 10.0%, driven by Indonesia, the Philippines, Saudi Arabia and Turkey.


(SLIDE 17.)

IQOS is now commercially available in 52 markets, representing 44% of the total international market, where our weighted-average geographic coverage within these markets is approximately 60%. This follows the addition of 8 new markets in 2019, including Hungary, Sweden, the UAE, the U.S. and the fourth quarter launch in Mexico, initially focused in select areas of Mexico City.


(SLIDE 18.)

In the latter part of the year we took another important step in our journey towards a smoke-free future with the launch of IQOS 3 DUO which is now available in all of our international IQOS markets, supported by our new Simply Amazing brand campaign. The Simply Amazing campaign focuses on everyday, relatable moments and emotions by showcasing to adult smokers who would otherwise continue to smoke the benefits of switching to IQOS.

This latest addition to the IQOS family was designed with enhanced features to help adult smokers switch more seamlessly from cigarettes. IQOS 3 DUO allows two consecutive uses without recharging the holder, while its charging time is significantly faster compared to IQOS 3 and IQOS 2.4 PLUS.

We have seen positive initial effects on rates of conversion and consumer satisfaction from the roll-out of DUO which offers us encouragement on consumers' response to innovation as we start 2020. We continue to nurture a strong pipeline of future product improvements and innovations for the core IQOS platform.


(SLIDE 19.)

Turning now to a more detailed discussion of RRP performance, we estimate that there were nearly 14 million total IQOS users as of year-end, representing the addition of 4 million adult users over the course of the year. Based on our current momentum, we expect this rate of acquisition to significantly increase in 2020.

We further estimate that 71% of the total -- or close to 10 million IQOS users -- have stopped smoking and switched to IQOS, with the balance in various stages of conversion.

This reflects widespread user growth, with highlights including a near doubling of users in Italy and Germany, a near trebling in Poland, very strong growth in Ukraine and the addition of 1.7 million users in Russia to reach a total of 2.5 million.


(SLIDE 20.)

Let me now take you through the performance of IQOS in 2019. The overall share performance of IQOS HTUs continues to see excellent progress. Indeed, in international markets where IQOS has been commercialized, IQOS HTUs were the third-largest tobacco ‘brand’ in the fourth quarter with 5.5% share, increasing from the number 4 position in Q3. This has been achieved despite not having full national distribution in a number of markets, as mentioned earlier.


(SLIDE 21.)

The continued excellent growth of IQOS reflects progress across a broad range of markets. Our commercialization approach starts with a focus on the key cities within a market, building adult smoker awareness, trial and conversion. On this

slide we see the strong offtake share momentum in a number of key cities. This gives us further encouragement as to the potential future growth at the national level as we see increases in both our geographic reach and rates of consumer awareness and trial.


(SLIDE 22.)

In the EU Region, fourth-quarter share for HEETS reached 3.2% of total cigarette and heated tobacco unit industry volume, an increase of 1.5 points, or near-doubling, compared to the fourth quarter of 2018.

On a sequential basis, share growth accelerated in the quarter, increasing by 0.7 points. In-market sales volume also grew 16.1% compared to Q3, 2019.


(SLIDE 23.)

This growth reflects continued strength across a broad range of markets, as detailed in this slide. It is worth noting that IQOS is only present in geographic areas representing approximately 57% of industry total volume in the Region. The quality of consumer acquisition is also high, with conversion rates and registration rates improving over time.


(SLIDE 24.)

IQOS continued its strong performance in Russia in the fourth quarter, with HEETS share up by 3.3 points to reach 5.0%. On a sequential basis versus the third quarter, HEETS share increased by 1.0 point, while in-market sales increased by over 20% to reach 2.9 billion units.

HEETS share growth in the quarter was consistent with the pace of adult smoker adoption and our geographic expansion. We are now commercializing IQOS in cities representing approximately half of the market by total industry volume, compared to an estimated 40% at the end of the second quarter.


(SLIDE 25.)

In Japan, our total reported share for heated tobacco units increased by 2.4 points to reach 17.6% in the fourth quarter, supported by the launch of IQOS 3 DUO and line extensions in our Marlboro HeatSticks and HEETS line-ups.

As we have previously mentioned, total industry and share metrics in Japan are currently somewhat distorted by the low price cigarillo category, which grew rapidly over the past two quarters to reach a total tobacco share of 6% in December. These products presently enjoy a significantly preferential tax treatment, though the tax council of the ruling party has recently announced the closing of this gap over two steps in October 2020 and October 2021. While the growth of this category is likely to be temporary, we plan to enter with the Philip Morris brand in the current quarter to capture our fair share.


(SLIDE 26.)

On a total tobacco view including cigarillos and adjusted for trade inventory movements, the share for our HTU brands increased by 1.5 points versus the prior year quarter, and by 0.6 points sequentially, to 16.9%.

2019 in-market sales volumes for our HTU brands grew 4.2% compared to a total tobacco market, including cigarillos, which declined just over 3% after adjusting for the estimated impact of trade inventory movements. This helped drive growth of the overall heated tobacco category to a fourth-quarter total tobacco share of almost 24%, including cigarillos and adjusted for trade inventory movements.


(SLIDE 27.)

In Korea, there remains a lingering impact on the heated tobacco category of the consumer confusion caused by the KFDA's 2018 communication on tar. The category also remains highly competitive, particularly in the area of non-menthol flavors and related new taste dimensions that are also present in the cigarette category.

HEETS share in the fourth quarter declined by 2.2 points, or by 1.4 points on an adjusted basis. However, on a sequential basis fourth quarter adjusted share was essentially stable, and our segment share continued to grow, supported by IQOS 3 DUO and recent launches that expanded the flavor line-up.

While we are encouraged by this trend, we still have a lot of work to do to reinforce the heated tobacco category's benefits and build upon IQOS's leadership position.


(SLIDE 28.)

A key development in 2019 was the launch of IQOS in the U.S. through our commercial arrangement with Altria. The first IQOS retail stores opened in the initial launch markets of Atlanta and Richmond, marking an historic milestone in providing better alternatives to the 40 million men and women in the U.S. who continue to smoke. While it remains early days in the lead market commercialization, we are excited about this significant opportunity.

As a reminder, IQOS is currently the only heat-not-burn product on the market authorized through the U.S. Food and Drug Administration's PMTA pathway as "appropriate for the protection of public health." We also plan to seek an additional marketing order for the IQOS 3 device in the coming months, which will further support the efforts to convert U.S. adult consumers who would otherwise continue to smoke.


(SLIDE 29.)

Building on the success of our heated tobacco portfolio, we plan to launch our e-vapor product IQOS MESH 2.0 this year. Following consumer confusion around e-vapor in the latter part of 2019, we took the decision to postpone our initial commercial launch. Unfortunately these misperceptions, although

moderating, still persist and as such we now plan to launch in the third quarter of this year when we will also reach the optimal capacity to deploy at scale. As a result, we plan a faster acceleration of commercial roll-out through the second half of the year.

It’s worth pausing to briefly consider the dynamics of the international e-vapor market in which IQOS MESH 2.0 will operate. The existing market is concentrated in a small number of geographies, with 10 markets making up around 70% of the approximately 25 million international adult users, which despite numbering almost double that of heated tobacco contribute less than half its retail value. This reflects the heavy existing skew to open tank systems, a low degree of product differentiation and a low rate of full conversion relative to heated tobacco products. Of these 10 markets, 7 also have a meaningful limit on nicotine concentration. The IQOS MESH product has been designed to address these dynamics and will be able to leverage our existing RRP commercial infrastructure and capabilities to drive consumer trial and repurchase. In summary, we are optimistic that IQOS MESH will deliver a superior experience and drive further growth in our business over time.


(SLIDE 30.)

Lastly in terms of the commercialization outlook on RRPs, we also recently announced a global collaboration agreement with KT&G for the commercialization of their smoke-free products outside of Korea. The key rationale for this agreement is to accelerate the growth of the smoke-free category, which will require multiple products providing a wide array of brand, taste, price and technology choices to adult smokers.

The capabilities we have built around RRPs in terms of commercial infrastructure and know-how, technology, scientific substantiation and regulatory engagement are best-in-class. These capabilities can be leveraged to broaden our strong portfolio and innovation pipeline to further drive category growth, including partnerships with others when it makes strategic and economic sense to do so. KT&G has a range of smoke-free products which we see as complementary to ours. We have responsibility for all elements of commercialization of products supplied under the agreement, and we intend to apply a market-by-market approach to deployment.

The agreement will run for an initial period of 3 years, with the intention to expand the market footprint based on commercial success. While we don't disclose the financial terms of such arrangements, this is a royalty-based agreement.

Products sold under the agreement will be subject to careful assessment to ensure they meet the regulatory requirements in the markets where they are launched, as well as PMI’s high standards of quality and scientific substantiation of their harm reduction potential. We are now working towards the first launches later this year. There are no current plans to commercialize KT&G products in the U.S.

With this agreement and our own IQOS MESH launch in 2020, we have an active and exciting year ahead.


(SLIDE 31.)

Turning to 2020 guidance, we forecast reported diluted earnings per share to be at least $5.50, at prevailing exchange rates, compared to reported diluted earnings per share of $4.61 in 2019.

On a like-for-like basis and excluding an unfavorable currency impact of approximately four cents, at prevailing exchange rates, this forecast represents a projected increase of at least 8% versus pro-forma adjusted diluted earnings per share of $5.13 in 2019.

In terms of quarterly phasing, we expect EPS growth, and net revenue growth, to be particularly strong in the first quarter, and notably softer in Q2, 2020.

The first quarter will benefit from the timing of pricing in the Philippines, and a favorable comparison with Q1, 2019 which included the absorption of a substantial excise tax increase in Turkey.

Conversely, performance in the second quarter will likely be impacted by both the comparison to a strong performance in Q2, 2019, and the most pronounced effect of the tax-driven pricing in Indonesia.

It's also worth noting that the higher weighting of growth to markets with significant non-controlling interests seen in the second half of 2019 will continue into the first half of 2020 due to annualization effects.


(SLIDE 32.)

Let me now explain the dynamics in Indonesia in more detail. As we said in December, the industry faces an atypical year of catch-up on excise tax and pricing.

The 2020 excise tax took effect on January 1st, implying a weighted-average excise tax increase of 24% industry-wide, with a 46% increase in the minimum banderole price. While the potential tax pass-on is relatively steep at 14% of the weighted average price, in the context of a two-year stack -- with no excise tax increase in 2019 -- the average percentage increase is broadly in-line with historical levels. The tax increase and the higher banderole price should also give us the opportunity to address the price gaps which impacted our 2019 share performance.

So far between October and January we have announced pricing of 8% on a weighted-average basis, or approximately 60% of the pass-on. To date, some of our competitors are lagging on pricing, and will require a larger catch-up to comply with the new minimum retail price effective April 1st.

We should also highlight the one-time impact on our pricing variance from the lack of any excise tax increase in 2019. With minimal pricing taken in the first 9 months of 2019, we will not benefit this year from the usual annualization effect

of increases taken in the prior period. This exceptional dynamic effectively creates a one-off drag on our 2020 pricing variance of over two hundred million dollars.

In line with our prior comments, we expect the total industry, measuring 307 billion units in 2019, to decline by around 6-7% in 2020, with the highest impact likely in the second quarter as the new minimum retail selling price takes effect and the new prices work their way through the trade. With the resumption of pricing this year we expect market dynamics to improve in 2021.


(SLIDE 33.)

Our 2020 guidance reflects certain key assumptions. The most significant, as we noted, is the pricing roll-out in Indonesia which at this stage we assume to dilute our combustible pricing variance to approximately 5% in 2020. While lower than our 2019 pricing variance, this is still very robust and is supported by a generally rational excise tax environment.

In combination with the projected total market decline of 6-7% in Indonesia, at this stage we cautiously assume currency-neutral net revenue growth of around 5%. However, I would reiterate that we remain very confident in our guidance of at least 8% currency-neutral EPS growth.


(SLIDE 34.)

One of the reasons for this confidence is the positive margin outlook, where our efforts to deliver over $1 billion in annualized cost efficiencies by 2021 are bearing fruit, led by important initiatives related to productivity, cost category management, a project-based organization model and other cost efficiencies.

In 2020, we expect cost efficiencies to fully offset expected net incremental RRP investments. With the growing scale and geographic reach of our RRP business, additional investments now primarily reflect variable costs linked to new consumer acquisition and existing user retention, plus new market entries. Consequently the cost per user is improving, with an expected decrease of 25% in our acquisition cost per user in 2020. We expect this increasing leverage of our commercial platform to contribute to an increase in currency-neutral operating income margin of at least 150 basis points in 2020.


(SLIDE 35.)

Moving to the industry volume backdrop, our estimated total market decline is around 3.0% to 4.0% for the year. While this is weaker than the historical average of 2.0% to 3.0%, this very much reflects the temporary situation in Indonesia, which represents around 11% of total industry volume. An additional factor comes from the present growth of the cigarillo category in Japan, which is not included in our cigarette total market calculation.

As shown on the chart, the assumed 6-7% market decline in Indonesia has an expected effect of around 0.7pts on the global industry, with a further 0.3 pts from the growth of cigarillos in Japan. While there are the usual puts and takes

elsewhere, together these two temporary impacts fully explain the deviation from the historical average, with underlying fundamentals remaining unchanged.

An additional upcoming development included in our industry forecast is the Tobacco Products Directive ban on menthol cigarettes in the European Union, effective May 2020. Menthol and menthol capsule variants make up around 10% of consumption in the Region, and while we do not expect a significant impact on the overall industry volume decline of 1-2%, this is a further opportunity for IQOS given that menthol HEETS variants are not covered by the ban.


(SLIDE 36.)

We expect PMI shipment volumes in 2020 to again outperform the industry trend, and anticipate a total cigarette and heated tobacco unit shipment volume decline of approximately 2.5% to 3.5%. We expect our shipment volume trends to be slightly better in the second half compared to the first half due to the dynamics already mentioned in Indonesia and Turkey.

While we are not providing a specific 2020 target for heated tobacco unit shipments, we expect continued broad-based growth and remain well on track to meet our shipment volume target of 90 to 100 billion units by 2021.


(SLIDE 37.)

We anticipate a full-year effective tax rate of approximately 23%, consistent with last year, and a relatively stable net interest expense compared to 2019.

We are targeting 2020 operating cash flow of approximately $10.5 billion, subject to year-end working capital requirements and currency movements. This includes the expected one-time adverse impact of new excise payment rules in Australia, and the timing of certain cash costs related to the Berlin factory restructuring. Together these two factors account for an expected unfavorable cash impact of approximately $350 million.

We project total capital expenditures this year to be approximately $1 billion.


(SLIDE 38.)

Summing up a strong year, we made very significant progress in our transformation to a smoke-free future in both our organization and our 2019 business results.

Just over 4 years since the first full-scale IQOS commercial launch in Japan in September 2015, we already have $5.6 billion in RRP net revenues, making up almost one fifth of our business. Importantly, RRP revenues are increasingly accretive to our profits, as evidenced by the strong margin growth seen in 2019, and expected in 2020.

IQOS continues to perform strongly, with 35% growth of HTU in-market sales volumes from an increasing number of markets where close to 10 million adult smokers have already stopped smoking and switched to IQOS. We project the

number of new users over the course of 2020 to be significantly higher than 2019 and at a cost per user that is lower, as the large RRP infrastructure investments of the past several years are mostly completed.

We are also very focused on maintaining the leadership of our combustible tobacco portfolio which is delivering robust performance and pricing power.

Despite the temporary headwinds in Indonesia, we are confident in our 2020 guidance and remain well on track to deliver our 2019-2021 compound annual ex-currency growth targets of at least 5% net revenue growth and at least 8% adjusted EPS growth.

Finally, we are confident in our strategy for a smoke-free future and are convinced that our current and future RRP portfolio continues to provide us with the single-largest opportunity to accelerate our business growth and generously reward our shareholders over time.


(SLIDE 39.)

Thank you. Martin and I are 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 2019 Fourth-Quarter and Full-Year Results February 6, 2020

Introduction • A glossary of key terms and definitions, 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 our business transformation metrics 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 are presented on a "like-for-like" basis reflecting pro forma 2018 results, which have been adjusted for the deconsolidation of our Canadian subsidiary, Rothmans, Benson & Hedges, Inc. (RBH), effective March 22, 2019 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 products and exposure to environmental tobacco smoke; litigation related to tobacco use; 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 September 30, 2019. 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

Strong Performance in 2019 • Broad-based growth for IQOS • Robust combustible tobacco portfolio results, with solid pricing • Strong adjusted financial results on a currency-neutral like-for-like basis • FDA Pre-Market Tobacco Authorization and U.S. commercial launch of IQOS(a) (a) IQOS 2.4 device Source: PMI Financials or estimates 4

PMI Total Volume: Full-Year 2019 In Line with Forecast Total Volume (Change vs. PY) • Industry total volume decline broadly Industry(a) PMI Shipments(b) in line with historical trend; slightly better than our prior forecast of around 2.5% • PMI volume in line with full-year forecast (1.4)% (2.0)% (a) Excluding China and the U.S. (b) Like-for-like basis Source: PMI Financials or estimates 5

PMI Total Volume: Q4, 2019 PMI Total Volume (Like-for-Like Change vs. PY) • Shipments include unfavorable Shipments IMS impact of cigarette inventory movements vs. prior year quarter • IMS decline primarily reflects the impact of recent pricing actions in Turkey and the Philippines (3.1)% (4.4)% Source: PMI Financials or estimates 6

Well On Track to Deliver HTU Shipment Volume Target of 90 to 100 Billion Units by 2021 60 billion units(a) in 2019 (a) 59.7 billion units Source: PMI Financials or estimates 7

Growing Contribution of HTUs to Our Total Shipments As a % of PMI Total Shipment Volume 7.8% 5.3% 4.5% 0.9% —% 2015 2016 2017 2018 2019 0.4 7.4 36.2 41.4 59.7 PMI HTU Shipment Volume (billion units) Source: PMI Financials or estimates 8

Strong Adjusted Financial Results in 2019 Growth vs. PY • Currency-neutral like-for-like net revenue growth driven by: (ex-currency, like-for-like basis) Strong pricing for our combustible tobacco portfolio ⎼ Higher HTU shipment volume ⎼ 6.4% Net Adjusted Adjusted Revenues OI Diluted EPS Source: PMI Financials or estimates 9

Five Years of Strong RRP Net Revenue Growth As a % of Total PMI Net Revenues 18.7% 13.8% 12.7% 2.7% —% 0.2% 2014 2015 2016 2017 2018 2019 $0.1 $0.7 $3.6 $4.1 $5.6 RRP Net Revenues ($ in billions) Source: PMI Financials or estimates 10

Strong Combustible Tobacco Pricing in 2019 PMI Combustible Tobacco Pricing Variance(a) 6.5% 6.5%(c) Notable contributions from Germany, Indonesia, the Philippines, Russia and Turkey Average (2008-2018)(b) 2019 (a) Reflects combustible tobacco pricing as a % of PY combustible tobacco net revenues (b) Average combustible tobacco pricing variance (2008-2018) over average base combustible product net revenues (2007-2017) (c) On a like-for-like basis Source: PMI Financials or estimates 11

Strong Adjusted Financial Results in 2019 Growth vs. PY • Currency-neutral like-for-like net revenue growth driven by: (ex-currency, like-for-like basis) Strong pricing for our combustible tobacco portfolio ⎼ Higher HTU shipment volume ⎼ • 170bps currency-neutral like-for-like adjusted OI margin expansion, notably reflecting: Benefit from increasing scale in RRPs ⎼ Favorable geographic mix of HTUs ⎼ Combustible tobacco pricing ⎼ Cost efficiencies ⎼ Implementation of all our $400 million planned incremental RRP investments ⎼ 6.4% 11.2% Net Adjusted Adjusted Revenues OI Diluted EPS Source: PMI Financials or estimates 12

Strong Adjusted Financial Results in 2019 Growth vs. PY • Currency-neutral like-for-like net revenue growth driven by: (ex-currency, like-for-like basis) Strong pricing for our combustible tobacco portfolio ⎼ Higher HTU shipment volume ⎼ • 170bps currency-neutral like-for-like adjusted OI margin expansion, notably reflecting: Benefit from increasing scale in RRPs ⎼ Favorable geographic mix of HTUs ⎼ Combustible tobacco pricing ⎼ Cost efficiencies ⎼ Implementation of all our $400 million planned incremental RRP investments ⎼ % % % • Lower like-for-like currency-neutral growth in adjusted diluted 6.4 11.2 9.9 EPS vs. adjusted OI, reflecting higher non-controlling interests and tax rate Net Adjusted Adjusted Revenues OI Diluted EPS Source: PMI Financials or estimates 13

2019: Operating Cash Flow; Capital Expenditures PMI Operating Cash Flow • Operating cash flow up by $0.6 billion, benefiting from: ($ in billions) Working capital initiatives $10.1 The timing of certain cash costs related to our $9.5 ⎼ Berlin factory optimization ⎼ • Capital expenditures of $0.9 billion, benefiting from production efficiencies 2018 2019 Note: Operating cash flow is defined as net cash provided by operating activities Source: PMI Financials or estimates 14

HTUs Drove Total Share Growth in 2019 PMI Total International Share +0.1pp 28.3% 28.4% 1.6% HTUs 2.2% +0.6pp 26.7% Cigarettes 26.2% (0.5)pp 20% 2018 2019 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 15

Marlboro Cigarette Share at All-Time High in 2019 PMI International Cigarette Share 27.2% 26.9% Others 9.7% Marlboro 10.0% +0.3pp 2018 2019 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 as a percentage of the total industry sales volume for cigarettes Source: PMI Financials or estimates 16

IQOS Available for Sale in 52 Markets Worldwide Available for sale (a) (a) IQOS 2.4 Plus internationally, IQOS 2.4 in the U.S. Note: Status at February 6, 2020. Reflects markets where IQOS is available in key cities or nationwide. The number of markets includes Duty Free 17

IQOS 3 DUO Now Offered in All IQOS Markets(a) Positive initial effects on adult smoker conversion & satisfaction Positive initial effects on adult smoker conversion & satisfaction THIS PRODUCT CONTAINS NICOTINE AND IS NOT-RISK FREE. FOR ADULT USE ONLY. THE BEST WAY TO REDUCE TOBACCO RELATED HEALTH RISKS IS TO QUIT TOBACCO USE ALTOGETHER. (a) Excluding the U.S. Source: PMI Financials or estimates, IQOS user panels and PMI Market Research 18

Approaching 14 Million IQOS Users (in millions) (a) Total IQOS users 13.6 Estimated users who are in various stages of conversion to IQOS(a) 12.3 Estimated users who have stopped 11.3 smoking and switched to IQOS(a) 10.4 9.6 8.8 8.3 7.6 67% 67% 67% 69% 70% 70% 71% 71% 3.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 (a) See Glossary for definition Source: PMI Financials or estimates, IQOS user panels and PMI Market Research 19

Third-Largest Tobacco ‘Brand’ in IQOS Markets Share in IQOS Markets (Q4, 2019) 12.0% 5.5% 3.9% #3 Marlboro Winston PMI HTUs Rothmans L&M Note: Excluding the U.S. Reflects sales volume as a percentage of the total industry sales volume for cigarettes and HTUs Source: PMI Financials or estimates 20

HTU Offtake Shares in Key Cities PMI (Q4, 2019) Change vs. PY +5.6pp +3.6pp +7.2pp +5.4pp +3.3pp +4.0pp +7.9pp +1.9pp 16.5% 13.2% 13.6% 13.5% 8.6% 8.3% 7.7% 4.4% Athens Bratislava Kiev Kuala Lumpur Lisbon Milan Moscow Munich +3.7pp +4.6pp (2.1)pp (0.5)pp +1.8pp +13.3pp +5.9pp +1.2pp 28.5% 20.6% 13.7% 10.7% 9.5% 8.1% 10.5% 3.3% Prague Rome Seoul Sofia Tokyo(a) Vilnius Warsaw Zurich (a) Japan total market includes the cigarillo category. Full-year 2019 HTU offtake shares are provided in the appendix Source: PMI Financials or estimates 21

EU Region: Continued HEETS Share Growth 3.2% +1.5pp 1.7% Q4, 2018 Q4, 2019 Sequential Performance (vs. Q3, 2019) SoM: +0.7pp IMS Volume: +16.1% Source: PMI Financials or estimates 22

EU Region: HEETS SoM Performance in Select Markets Growth Growth Growth Q4, 2019 vs. PY Q4, 2019 vs. PY Q4, 2019 vs. PY Bulgaria 4.6% (0.1)pp Hungary 4.2% +4.2pp Portugal 7.2% +2.8pp Croatia 4.2 +2.5 Italy 6.1 +2.8 Romania 2.5 +0.5 Czech Slovak Latvia Republic 7.2 +3.0 7.7 +6.1 Republic 7.5 +1.5 Germany 1.6 +0.8 Lithuania 17.5 +9.0 Slovenia 3.7 +1.5 Greece 10.5 +3.9 Poland 3.8 +2.3 Switzerland 2.8 +0.7 Note: Select markets where HEETS share is ≥ 1%. Full-year 2019 HEETS market shares are provided in the appendix Source: PMI Financials or estimates 23

Russia: Continued Strong HEETS Share Growth 5.0% +3.3pp 1.7% Q4, 2018 Q4, 2019 Sequential Performance (vs. Q3, 2019) SoM: +1.0pp IMS Volume: +20.3% Source: PMI Financials or estimates 24

Japan: PMI HTU Share Performance 17.6% 17.0% 17.1% 16.6% 15.2% Q4 Q1 Q2 Q3 Q4 2018 2019 Source: PMI Financials or estimates 25

Japan: PMI HTU Share Performance Adjusted Total Tobacco SoM(a) 15.4% 16.6% 16.5% 16.3% 16.9% 17.6% 17.0% 17.1% 16.6% 15.2% Q4 Q1 Q2 Q3 Q4 2018 2019 (a) Excluding the impact of estimated trade inventory movements, and including the cigarillo category Source: PMI Financials or estimates 26

Korea: Stable HEETS Sequential Share Performance SoM SoS Adjusted(a) 7.8% 7.8% 7.0% 6.3% 6.4% 66.2% 62.8% 65.1% 67.2% 8.5% 64.0% 63.5% 7.3% 7.3% 63.1% 62.5% 6.2% 6.3% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2019 (a) Excluding the impact of estimated trade inventory movements Source: PMI Financials or estimates 27

IQOS Now Available in the U.S. 40 • First IQOS retail stores opened million in the initial launch markets of adult smokers in the U.S. Atlanta and Richmond • The only heat-not-burn product authorized through FDA’s PMTA pathway as "appropriate for the protection of public health" • Plan to seek an additional marketing order under the PMTA pathway for the IQOS 3 device in the coming months Source: PMI Financials or estimates 28

Launching IQOS MESH 2.0 Across Multiple Markets in 2020 • Consumer misperceptions on e-vapor category, albeit moderating, still persist • Now plan accelerated launch starting in Q3, 2020 • Notable international e-vapor market dynamics: 10 markets account for around 70% of total international adult users Skew towards open tank systems; low degree of product differentiation ⎼ Low rate of full conversion (vs. heated tobacco products) ⎼ Majority of markets have nicotine concentration limits ⎼ ⎼ • IQOS MESH 2.0 designed to address these dynamics and will leverage our RRP commercial infrastructure and capabilities Source: PMI Financials or estimates, IQOS User Panels and PMI Market Research 29

Global Collaboration Agreement with KT&G to Accelerate the Achievement of a Smoke-Free Future • Requires multiple products providing a wide array of brand, taste, price and technology choices to adult Driving smokers • Leveraging on PMI’s best-in-class RRP commercialization, technology, scientific substantiation and Growth in regulatory engagement capabilities to broaden our strong portfolio and innovation pipeline, to further drive category growth Smoke-Free • KT&G’s smoke-free products are complementary to ours Category • PMI has responsibility for all elements of commercialization and we intend to apply a market-by-market approach to deployment • Will run for an initial three-year period; royalty-based agreement The • Intention to expand the market footprint based on commercial success • Products subject to careful scientific assessment before commercialization Agreement • Working towards the first launches later this year • No current plans to commercialize KT&G products in the U.S. 30

2020: EPS Guidance • Reported diluted EPS guidance of at least $5.50, at prevailing exchange rates, compared to $4.61 in 2019: Includes four cents of unfavorable currency at prevailing exchange rates Does not include any share repurchases ⎼ ⎼ • On a currency-neutral like-for-like basis, our guidance represents a growth rate of at least 8% compared to pro forma adjusted diluted EPS of $5.13 in 2019 • Expect a particularly strong Q1 and notably softer Q2 • Higher weighting of growth to markets with significant non-controlling interests seen in H2, 2019 will continue into H1, 2020 due to annualization effects Source: PMI Financials or estimates 31

2020: Indonesia Dynamics • Excise tax and minimum banderole price increases: January 1st: excise tax +24%(a) / minimum banderole price +46%(a) April 1st: minimum RSP of 85% of new banderole price takes effect ⎼ In context of a two-year stack, increases broadly in-line with historical levels ⎼ Opportunity for narrowing of price gaps ⎼ PMI pricing of 8%(a) announced since October 2019 ⎼ ⎼ • One-time impact on 2020 pricing variance: No excise tax increase in 2019 and consequent lack of related price annualization in 2020 ⎼ • Expect total industry to decline by around 6% to 7% • Expect market dynamics to improve in 2021 (a) Weighted-average Source: PMI Financials or estimates 32

2020: Select Guidance Assumptions Combustible Tobacco % (a) ̴ 5 Pricing Variance ex-currency, like-for-like basis % Net Revenue Growth ̴ 5 ex-currency, like-for-like basis (a) Reflects combustible tobacco pricing as a % of PY combustible tobacco net revenues Source: PMI Financials or estimates 33

2020: Select Guidance Assumptions (cont.) Combustible Tobacco % (a) ̴ 5 Pricing Variance ex-currency, like-for-like basis % Net Revenue Growth ̴ 5 ex-currency, like-for-like basis Adjusted OI ≥150bps Margin Expansion ex-currency, like-for-like basis Expect improvement of 25% in our acquisition cost/IQOS user (a) Reflects combustible tobacco pricing as a % of PY combustible tobacco net revenues Source: PMI Financials or estimates 34

2020: Industry Total Volume Decline Assumption • 3% to 4% decline weaker than historical average, impacted by: Indonesia: 2020 excise tax increase % 5-year trend (2)-(3) (2015-2019) Japan: cigarillo category growth driven ⎼ by preferential tax treatment ⎼ • Underlying fundamentals remain unchanged ̴ (0.7)pp Indonesia ̴ (0.3)pp Japan cigarillos • EU TPD menthol ban not expected (3)-(4)% to have signiﬁcant impact Note: Excluding China and the U.S. Source: PMI Financials or estimates 35

2020: Select Guidance Assumptions (cont.) % PMI Total Shipments (2.5)-(3.5) like-for-like basis Well on track to meet PMI HTU Shipments 90 to 100 billion units by 2021 Source: PMI Financials or estimates 36

2020: Select Guidance Assumptions (cont.) Full-Year Effective Tax Rate ̴ 23% Net Interest Expense Relatively Stable Operating Cash Flow ̴ $10.5 billion Total Capital Expenditures ̴ $1.0 billion Note: Operating cash ﬂow is deﬁned as net cash provided by operating activities Source: PMI Financials or estimates 37

Anticipate Strong Underlying Business Fundamentals to Continue into 2020 • Very signiﬁcant progress on our transformation to a smoke-free future • IQOS continues to perform strongly: Project signiﬁcantly more new users in 2020 ⎼ • Robust combustible tobacco portfolio performance and pricing power • Well on track to deliver 2019-2021 currency-neutral CAGR targets of: ≥5% for net revenues ≥8% for adjusted diluted EPS ⎼ Source: PMI Financials or estimates Source:⎼ PMI Financials or estimates 38

Delivering a Smoke-Free Future 2019 Fourth-Quarter and Full-Year 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 2019 Fourth-Quarter and Full-Year Results February 6, 2020

Glossary of Key Terms and Deﬁnitions, Appendix, and Reconciliation of Non-GAAP Measures 41

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 • "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 42

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, which accounted for approximately 40% of RBH's total shipment volume in 2018 • 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 • "SoM" stands for share of market • "SoS" stands for share of segment 43

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. • "Adjusted Operating Income (OI) Margin" is calculated as adjusted OI, divided by net revenues • 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. For example, PMI’s adjusted diluted EPS and other impacted results reﬂect the loss on deconsolidation of RBH and the Canadian tobacco litigation-related expense, recorded in the ﬁrst quarter of 2019, and the Russia excise & VAT charge, recorded in the third quarter of 2019. PMI believes that the adjusted 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 fourth-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 44

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 Marlboro and HEETS FROM MARLBORO, deﬁned collectively as HEETS, as well as Marlboro HeatSticks and Parliament HeatSticks • 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 • National 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 45

Glossary: Reduced-Risk Products (cont.) • "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 • "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 46

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 • 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 47

HTU Offtake Shares in Key Cities PMI (FY, 2019) Change vs. PY +6.2pp +5.8pp +6.8pp +4.2pp +3.7pp +3.5pp +7.2pp +1.7pp 13.9% 12.8% 11.5% 10.7% 6.5% 7.7% 6.4% 3.6% Athens Bratislava Kiev Kuala Lumpur Lisbon Milan Moscow Munich +5.4pp +4.5pp (0.9)pp +2.7pp +1.8pp +13.6pp +4.5pp +1.1pp 20.4% 23.1% 12.8% 8.7% 10.1% 8.8% 7.5% 2.8% Prague Rome Seoul Sofia Tokyo(a) Vilnius Warsaw Zurich (a) Japan total market includes the cigarillo category Source: PMI Financials or estimates 48

EU Region: HEETS SoM Performance in Select Markets Growth Growth Growth FY, 2019 vs. PY FY, 2019 vs. PY FY, 2019 vs. PY Bulgaria 4.5% +1.7pp Hungary 1.9% +1.9pp Portugal 6.2% +3.2pp Croatia 3.4 +2.6 Italy 4.8 +2.6 Romania 2.3 +0.4 Czech Slovak Latvia Republic 5.9 +3.3 5.4 +4.7 Republic 6.8 +3.2 Germany 1.2 +0.7 Lithuania 14.1 +9.2 Slovenia 3.1 +1.6 Greece 8.7 +4.0 Poland 2.5 +1.6 Switzerland 2.6 +0.9 Note: Select markets where HEETS share is ≥ 1% Source: PMI Financials or estimates 49

2020: EPS Guidance Full-Year ($/share) 2020 Adjusted Forecast 2019 Growth Reported Diluted EPS ≥ $5.50 $4.61 - Tax items (0.04) - Asset impairment and exit costs 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 (0.02) Adjusted Diluted EPS $5.50 $5.19 (a) - Net earnings attributable to RBH (0.06) Adjusted Diluted EPS $5.50 $5.13 (b) - Currency (0.04) Adjusted Diluted EPS, excluding currency ≥ $5.54 $5.13 (b) ≥ 8% (a) Net reported diluted EPS attributable to RBH from January 1, 2019 through March 21, 2019 (b) Pro forma Source: PMI Financials or estimates 50

Business Transformation Metrics(a) Shifting Company Resources to Deliver a Smoke-Free Future Aspiration(b) 2015 2016 2017 2018 2019 by 2025 R&D expenditure (smoke-free/total) 70% 72% 74% 92% 98% Commercial expenditure (smoke-free/total) 8% 15% 39% 60% 71% Net revenues(c) (smoke-free/total) 0.2% 2.7% 12.7% 13.8% 18.7% 38-42% Smoke-free product shipment ratio(d) (smoke-free/total) 0.1% 0.9% 4.4% 5.1% 7.6% >30% Estimated users who have stopped smoking and switched to IQOS(e) (in millions) n/a 1.5 4.7 6.6 9.7 >40 (a) As of December 31, 2019 (b) Assuming constant PMI market share. We do not set aspirational targets for R&D and commercial expenditure but we expect both ratios to continue increasing to enable the stated outcome in terms of shipment volume. Note: Aspirational targets do not constitute financial projections (c) Excluding excise taxes. For future periods, at today’s pricing and excise tax assumptions (d) The smoke-free product shipment ratio is computed based on millions of units. Smoke-free products include heated tobacco units and e-cigarettes. Total products include smoke-free products, cigarettes and other combustible products (e) See slide 46 for definition Source: PMI Financials or estimates, IQOS user panels and PMI Market Research 51

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Reported Diluted EPS to Reported Diluted EPS, excluding Currency, and Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS, excluding Currency (Unaudited) Years Ended December 31, 2019 2018 % Change Reported Diluted EPS $ 4.61 $ 5.08 (9.3)% Currency (0.13) Reported Diluted EPS, excluding Currency $ 4.74 $ 5.08 (6.7)% Years Ended December 31, 2019 2018 % Change Reported Diluted EPS $ 4.61 $ 5.08 (9.3)% Asset impairment and exit costs 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 (0.02) - Tax items (0.04) 0.02 Adjusted Diluted EPS $ 5.19 $ 5.10 1.8% Currency (0.13) Adjusted Diluted EPS, excluding Currency $ 5.32 $ 5.10 4.3% 52

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Adjustments for the Impact of RBH, excluding Currency (Unaudited) Years Ended December 31, 2019 2018 % Change Adjusted Diluted EPS(a) $ 5.19 $ 5.10 1.8% Net earnings attributable to RBH (0.26) (b) Adjusted Diluted EPS $ 5.19 $ 4.84 (c) 7.2% Currency (0.13) Adjusted Diluted EPS, excluding Currency $ 5.32 $ 4.84 (c) 9.9% (a) For the calculation, see previous slide (b) Represents the impact attributable to RBH from March 22, 2018 through end of period date (c) Pro forma 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 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 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 Adjustments for the Impact of RBH, excluding Currency ($ in millions) / (Unaudited) Years Ended December 31, 2019 2018 % Change Net Revenues $ 29,805 $ 29,625 0.6% Net Revenues attributable to RBH (742) (a) Net Revenues $ 29,805 $ 28,883 (b) 3.2% Currency (937) Net Revenues, excluding Currency $ 30,742 $ 28,883 (b) 6.4% (a) Represents the impact attributable to RBH from March 22, 2018 through end of period date (b) Pro forma 55

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 Excluding Asset Adjusted Operating Income Asset Adjusted Operating Acqui- Operating Excluding Currency Impairment Operating Currency Income excluding Impairment Operating Total Income sitions Income Currency & Acqui- & Exit Costs Income excluding Currency & Exit Costs Income sitions Currency & Acqui- sitions Years Ended 2019 2018 % Change December 31, $ 3,970 $ (342) (a) $ 4,312 $ (330) $ 4,642 $ - $ 4,642 European Union $ 4,105 $ - $ 4,105 5.0% 13.1% 13.1% 547 (374) (b) 921 23 898 - 898 Eastern Europe 902 - 902 2.1% (0.4)% (0.4)% 1,684 - 1,684 (53) 1,737 - 1,737 Middle East & Africa 1,627 - 1,627 3.5% 6.8% 6.8% 2,163 (20) (a) 2,183 17 2,166 - 2,166 South & Southeast Asia 1,747 - 1,747 25.0% 24.0% 24.0% 1,932 - 1,932 37 1,895 - 1,895 East Asia & Australia 1,851 - 1,851 4.4% 2.4% 2.4% 235 (493) (c) 728 14 714 - 714 Latin America & Canada 1,145 - 1,145 (36.4)% (37.6)% (37.6)% $ 10,531 $ (1,229) $ 11,760 $ (292) $ 12,052 $ - $ 12,052 Total PMI $ 11,377 $ - $ 11,377 3.4% 5.9% 5.9% (a) Represents asset impairment and exit costs (b) Represents the Russia excise and VAT audit charge (c) Includes asset impairment and exit costs ($60 million), the Canadian tobacco litigation-related expense ($194 million) and the loss on deconsolidation of RBH ($239 million) 56

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Adjustments for the Impact of RBH, excluding Currency ($ in millions) / (Unaudited) Years Ended December 31, 2019 2018 % Change Operating Income $ 10,531 $ 11,377 (7.4)% Asset impairment and exit costs (422) - Canadian tobacco litigation-related expense (194) - Loss on deconsolidation of RBH (239) - Russia excise and VAT audit charge (374) - Adjusted Operating Income $ 11,760 $ 11,377 3.4% Operating Income attributable to RBH (542) (a) Adjusted Operating Income $ 11,760 $ 10,835 (b) 8.5% Currency (293) Adjusted Operating Income, excluding Currency $ 12,053 $ 10,835 (b) 11.2% (a) Represents the impact attributable to RBH from March 22, 2018 through end of period date (b) Pro forma 57

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 Years Ended 2019 2018 % Points Change December 31, $ 4,312 $ 9,817 43.9% $ 4,642 $ 10,380 44.7% $ 4,642 $ 10,380 44.7% European Union $ 4,105 $ 9,298 44.1% (0.2) 0.6 0.6 921 3,282 28.1% 898 3,390 26.5% 898 3,390 26.5% Eastern Europe 902 2,921 30.9% (2.8) (4.4) (4.4) 1,684 4,042 41.7% 1,737 4,204 41.3% 1,737 4,204 41.3% Middle East & Africa 1,627 4,114 39.5% 2.2 1.8 1.8 2,183 5,094 42.9% 2,166 5,104 42.4% 2,166 5,104 42.4% South & Southeast Asia 1,747 4,656 37.5% 5.4 4.9 4.9 1,932 5,364 36.0% 1,895 5,390 35.2% 1,895 5,390 35.2% East Asia & Australia 1,851 5,580 33.2% 2.8 2.0 2.0 728 2,206 33.0% 714 2,274 31.4% 714 2,274 31.4% Latin America & Canada 1,145 3,056 37.5% (4.5) (6.1) (6.1) $ 11,760 $ 29,805 39.5% $ 12,052 $ 30,742 39.2% $ 12,052 $ 30,742 39.2% Total PMI $ 11,377 $ 29,625 38.4% 1.1 0.8 0.8 (a) For the calculation of Adjusted Operating Income and Adjusted Operating Income excluding currency and acquisitions refer to slide 56 (b) For the calculation of Net Revenues excluding currency and acquisitions refer to slide 54 58

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Adjustments for the Impact of RBH, excluding Currency ($ in millions) / (Unaudited) Years Ended December 31, 2019 2018 % Change Adjusted Operating Income(a) $ 11,760 $ 11,377 3.4% Net Revenues $ 29,805 $ 29,625 Adjusted OI Margin 39.5% 38.4% 1.1 Adjusted OI Margin attributable to RBH (0.9) (b) Adjusted OI Margin 39.5% 37.5%(c) 2.0 Currency 0.3 Adjusted OI Margin, excluding Currency 39.2% 37.5%(c) 1.7 (a) For the calculation of Adjusted Operating Income refer to slide 56 (b) Represents the impact attributable to RBH from March 22, 2018 through end of period date (c) Pro forma 59

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 Quarter Ended Ended Ended Ended Ended Ended Ended Ended Mar 31, Jun 30, Jun 30, Sept 30, Sept 30, Dec 31, Dec 31, Mar 31, 2018 2018 2018 2018 2018 2018 2018 2019 Reported Diluted EPS $ 1.00 $ 1.41 $ 2.41 $ 1.44 $ 3.85 $ 1.23 $ 5.08 $ 0.87 Asset impairment and exit costs - - - - - - - 0.01 Canadian tobacco litigation-related expense - - - - - - - 0.09 Loss on deconsolidation of RBH - - - - - - - 0.12 Tax items - - - - - 0.02 0.02 - Adjusted Diluted EPS $ 1.00 $ 1.41 $ 2.41 $ 1.44 $ 3.85 $ 1.25 $ 5.10 $ 1.09 (c) Net earnings attributable to RBH - (a) (0.08) (0.08) (a) (0.09) (0.18) (a) (0.08) (0.26) (a) - (b) Pro Forma Adjusted Diluted EPS $ 1.00 $ 1.33 $ 2.33 $ 1.35 $ 3.67 $ 1.17 $ 4.84 (a) Represents the impact of net earnings attributable to RBH from March 22, 2018 through end of period date (b) Represents the impact of net earnings attributable to RBH from March 22, 2019 through end of period date (c) Includes approximately $0.06 per share 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 60

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 61

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 62

Delivering a Smoke-Free Future 2019 Fourth-Quarter and Full-Year Results February 6, 2020




Virginia	1-33708	13-3435103
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)



120 Park Avenue	New York	New York	10017-5592
(Address of principal executive offices)			(Zip Code)



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, no par value	PM	New York Stock Exchange
2.000% Notes due 2020	PM20B	New York Stock Exchange
Floating Notes due 2020	PM20C	New York Stock Exchange
1.750% Notes due 2020	PM20A	New York Stock Exchange
4.500% Notes due 2020	PM20	New York Stock Exchange
1.875% Notes due 2021	PM21B	New York Stock Exchange
1.875% Notes due 2021	PM21C	New York Stock Exchange
4.125% Notes due 2021	PM21	New York Stock Exchange
2.900% Notes due 2021	PM21A	New York Stock Exchange
2.625% Notes due 2022	PM22A	New York Stock Exchange
2.375% Notes due 2022	PM22B	New York Stock Exchange
2.500% Notes due 2022	PM22	New York Stock Exchange
2.500% Notes due 2022	PM22C	New York Stock Exchange
2.625% Notes due 2023	PM23	New York Stock Exchange
2.125% Notes due 2023	PM23B	New York Stock Exchange
3.600% Notes due 2023	PM23A	New York Stock Exchange



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
2.875% Notes due 2024	PM24	New York Stock Exchange
2.875% Notes due 2024	PM24C	New York Stock Exchange
0.625% Notes due 2024	PM24B	New York Stock Exchange
3.250% Notes due 2024	PM24A	New York Stock Exchange
2.750% Notes due 2025	PM25	New York Stock Exchange
3.375% Notes due 2025	PM25A	New York Stock Exchange
2.750% Notes due 2026	PM26A	New York Stock Exchange
2.875% Notes due 2026	PM26	New York Stock Exchange
0.125% Notes due 2026	PM26B	New York Stock Exchange
3.125% Notes due 2027	PM27	New York Stock Exchange
3.125% Notes due 2028	PM28	New York Stock Exchange
2.875% Notes due 2029	PM29	New York Stock Exchange
3.375% Notes due 2029	PM29A	New York Stock Exchange
0.800% Notes due 2031	PM31	New York Stock Exchange
3.125% Notes due 2033	PM33	New York Stock Exchange
2.000% Notes due 2036	PM36	New York Stock Exchange
1.875% Notes due 2037	PM37A	New York Stock Exchange
6.375% Notes due 2038	PM38	New York Stock Exchange
1.450% Notes due 2039	PM39	New York Stock Exchange
4.375% Notes due 2041	PM41	New York Stock Exchange
4.500% Notes due 2042	PM42	New York Stock Exchange
3.875% Notes due 2042	PM42A	New York Stock Exchange
4.125% Notes due 2043	PM43	New York Stock Exchange
4.875% Notes due 2043	PM43A	New York Stock Exchange
4.250% Notes due 2044	PM44	New York Stock Exchange




PHILIP MORRIS INTERNATIONAL INC.

By:		/s/ JERRY WHITSON
Name:		Jerry Whitson
Title:		Deputy General Counsel and Corporate Secretary



☐	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 February 6, 2020 (furnished pursuant to Item 2.02).



99.2	Conference Call Script dated February 6, 2020 (furnished pursuant to Item 7.01).



99.3	Webcast Slides dated February 6, 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