pm-20210720

Exhibit 99.1

PRESS RELEASE

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PHILIP MORRIS INTERNATIONAL INC. REPORTS 2021 SECOND-QUARTER

REPORTED DILUTED EPS OF $1.39—INCLUDING CHARGES FOR SAUDI ARABIA CUSTOMS ASSESSMENTS AND EXIT COSTS—AND ADJUSTED DILUTED EPS OF $1.57,

REFLECTING ORGANIC GROWTH OF 17.8%;

REVISES 2021 FULL-YEAR REPORTED DILUTED EPS FORECAST

TO A RANGE OF $5.76 TO $5.86 AND RAISES ORGANIC GROWTH TO AROUND 12% TO 14%

NEW YORK, July 20, 2021 – Philip Morris International Inc. (NYSE: PM) today announces its 2021 second-quarter results. Growth rates presented in this press release on an organic basis reflect currency-neutral underlying results. Adjusted net revenues exclude the impact related to the Saudi Arabia customs assessments. Adjustments, other calculations and reconciliations to the most directly comparable U.S. GAAP measures are included in the schedules to this press release.

2021 SECOND-QUARTER & YEAR-TO-DATE HIGHLIGHTS

2021 Second-Quarter

•Reported diluted EPS of $1.39, up by 11.2%; up by 7.2%, excluding currency

•Adjusted diluted EPS of $1.57, up by 21.7%; up by 17.8% on an organic basis

•Cigarette and heated tobacco unit shipment volume up by 6.1% (reflecting cigarette shipment volume up by 3.2%, and heated tobacco unit shipment volume up by 30.2% to 24.4 billion units)

•Market share for heated tobacco units in IQOS markets, excluding the U.S., up by 1.4 points to 7.3%

•Net revenues up by 14.2%; up by 7.9%, excluding currency

•Adjusted net revenues up by 11.6% on an organic basis

•Net revenues from smoke-free products accounted for 29.0% of total adjusted net revenues

•Operating income up by 14.6%; up by 9.9%, excluding currency

•Adjusted operating income up by 18.7% on an organic basis

•Adjusted operating income margin of 44.1% up by 2.0 points; up by 2.7 points on an organic basis

•Total IQOS users at quarter-end estimated at approximately 20.1 million, of which approximately 14.7 million have switched to IQOS and stopped smoking

•New share repurchase program of up to $7 billion authorized, with target spending of $5 to $7 billion over a three-year period that will commence in the third quarter of 2021

•Regular quarterly dividend of $1.20 per common share declared, representing an annualized rate of $4.80

2021 Six Months Year-to-Date

•Reported diluted EPS of $2.93, up by 21.1%; up by 14.9%, excluding currency

•Adjusted diluted EPS of $3.14, up by 25.6%; up by 19.6% on an organic basis

•Cigarette and heated tobacco unit shipment volume up by 1.1% (reflecting cigarette shipment volume down by 2.2%, and heated tobacco unit shipment volume up by 30.1% to 46.1 billion units)

•Market share for heated tobacco units in IQOS markets, excluding the U.S., up by 1.5 points to 7.4%

•Net revenues up by 10.0%; up by 5.3% excluding currency

•Adjusted net revenues up by 7.1% on an organic basis

•Net revenues from smoke-free products accounted for 28.5% of total adjusted net revenues

•Operating income up by 19.1%; up by 13.4%, excluding currency

•Adjusted operating income up by 18.6% on an organic basis

•Adjusted operating income margin of 45.0% up by 4.5 points; up by 4.4 points on an organic basis

"We delivered strong financial performance in the quarter, with adjusted diluted EPS of $1.57 up by 17.8% on an organic basis," said Jacek Olczak, Chief Executive Officer.

"IQOS continued its impressive growth, surpassing an estimated 20 million total users by quarter-end and driving sequential quarterly heated tobacco unit in-market sales volume growth of 8%. We expect this momentum to be bolstered by the launch of IQOS ILUMA, starting next month in Japan."

"We are increasing our full-year adjusted outlook, with organic net revenue growth of 6% to 7% and adjusted diluted EPS growth of 12% to 14% on the same basis, mainly reflecting improved total industry volume. This outlook further supports our recently announced three-year share repurchase program of up to $7 billion."

"In addition, the proposed acquisitions of Fertin Pharma and Vectura Group will reinforce our long-term growth potential in the beyond nicotine space."

2021 FULL-YEAR FORECAST


	Full-Year
	2021 Forecast			2020	Organic Growth

Reported Diluted EPS	$5.76	-	$5.86	$ 5.16
Saudi Arabia customs assessments	0.14			—
Asset impairment and exit costs	0.07			0.08
Fair value adjustment for equity security investments				0.04
Tax items				(0.06)
Brazil indirect tax credit				(0.05)
Adjusted Diluted EPS	$5.97	-	$6.07	$ 5.17
Currency	(0.18)
Adjusted Diluted EPS, excluding currency	$5.79	-	$5.89	$ 5.17	12%	-	14%

PMI revises its full-year reported diluted EPS forecast to a range of $5.76 to $5.86, at prevailing exchange rates, from a range of $5.93 to $6.03 previously, reflecting:

•An adverse impact of $0.14 per share, related to a reduction in net revenues for the Saudi Arabia customs assessments communicated previously;

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•Asset impairment and exit costs of $0.07 per share, compared to $0.02 per share previously, mainly due to organizational design optimization;

•A favorable currency impact of $0.18 at prevailing exchange rates, compared to $0.20 per share, previously; and

•Better anticipated underlying business performance, primarily driven by an improved estimated industry volume progression (due to cigarettes) and the corresponding impact on PMI shipment volume.

On an organic basis, this forecast represents a projected increase of around 12% to 14% versus adjusted diluted EPS of $5.17 in 2020, as outlined in the table above.

2021 Full-Year Forecast Assumptions

This forecast assumes:

•A gradual improvement in the general operating environment, with potential volatility around the duration and effects of pandemic-related mobility restrictions across PMI's key markets;

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

•A limited impact from the current global shortage of semiconductors on the supply of our electronic devices to consumers;

•An estimated total international industry volume progression, excluding China and the U.S., of approximately -1% to +1%, compared to approximately -3% to flat, previously;

•A total cigarette and heated tobacco unit shipment volume progression for PMI of approximately flat to +2%, compared to approximately -2% to +1%, previously;

•Heated tobacco unit shipment volume of 95 to 100 billion units;

•Adjusted net revenue growth of approximately 6% to 7% on an organic basis, compared to approximately 5% to 7%, previously;

•An increase in adjusted operating income margin of around 200 basis points on an organic basis;

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

•Capital expenditures of approximately $0.8 billion;

•An effective tax rate, excluding discrete tax events, of around 22%;

•No material impact of any share repurchases;

•No material impact related to the announced agreements to acquire Fertin Pharma A/S or Vectura Group plc;

•A second half of 2021 reflecting:

•The assumption that many of PMI's key markets will have largely emerged from pandemic-related restrictions;

•Continued robust organic net revenue growth; and

•Incremental commercial investments, compared to the first half of 2021, of approximately $300 to $400 million.

•Third-quarter reported diluted EPS in a range of $1.50 to $1.55, including a favorable currency impact, at prevailing exchange rates, of around $0.04 per share.

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The foregoing is underpinned by the assumption that, even in the event of prolonged pandemic-related restrictions, there will not be a return to the depressed consumption levels of the second quarter of 2020. This assumption is consistent with the less severe impact on consumption levels observed in the second half of 2020 as COVID-19 spread in a number of markets.

This forecast excludes the impact of any future acquisitions, unanticipated or unquantifiable asset impairment and exit cost charges, future changes in currency exchange rates, further developments pertaining to the judgment in the two Québec Class Action lawsuits and the Companies’ Creditors Arrangement Act (CCAA) protection granted to PMI's Canadian subsidiary, Rothmans, Benson & Hedges, Inc. (RBH), any unusual events, any intensification of the global shortage of semiconductors and the related impact on the supply of our electronic devices, and any COVID-19-related developments different from the assumptions set forth in the company's forecast.

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

Saudi Arabia Customs Assessments

As previously communicated, in June 2021, the Customs Appeal Committee in Riyadh notified our distributors in Saudi Arabia of its decisions to largely reject their challenges of the Saudi Arabia Customs General Authority assessments described in our Form 10-Q that was filed with the U.S. Securities and Exchange Commission for the quarter ended March 31, 2021.

On the basis of these decisions and in line with arrangements with the distributors, PMI recorded a pre-tax charge of $246 million in the second quarter of 2021, resulting in a $0.14 per share adverse impact on reported diluted EPS. In accordance with U.S. GAAP, the charge was recorded as a reduction of net revenues on the consolidated statement of earnings. These amounts are excluded from PMI's adjusted results.

COVID-19: Business Continuity Update

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

Currently:

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

•All of PMI's cigarette and heated tobacco unit manufacturing facilities globally are operational;

•COVID-related restrictions do not have a significant impact on the availability of PMI’s products to its customers and adult consumers; and

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

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Beyond Nicotine

In February 2021, PMI announced its ambition to generate at least $1 billion in annual net revenues from "Beyond Nicotine" products by 2025, leveraging its expertise—in life sciences, inhalation technology, natural ingredients, commercial deployment and ability to change consumer behavior—to explore, develop and grow new adjacent areas to deliver additional growth. The key focus areas identified by PMI include botanical well-being and respiratory drug delivery.

On July 1, 2021, PMI announced an agreement to acquire Fertin Pharma A/S, a leading developer and manufacturer of innovative pharmaceutical and well-being products based on oral and intra-oral delivery systems, for an enterprise value of DKK 5.1 billion (approximately $820 million based on then-prevailing exchange rates). PMI will fund the transaction with existing cash and expects it to close in the fourth quarter of 2021, subject to approval by the appropriate regulatory authorities.

On July 9, 2021, PMI announced it had agreed with the board of Vectura Group plc (Vectura) (LSE: VEC) on the terms of an all-cash, recommended offer to acquire Vectura for an enterprise value of GBP 852 million (calculated as per Appendix II of the Rule 2.7 offer announcement; approximately $1.2 billion based on then-prevailing exchange rates). Vectura is a provider of innovative inhaled drug delivery solutions that enable partners to bring their medicines to patients. The company has thirteen key inhaled products marketed by major global pharmaceutical partners, as well as a diverse portfolio of partnerships for drugs in clinical development. PMI will fund the transaction with existing cash and expects it to close in the second half of 2021, subject to a Vectura shareholder vote and approval by the appropriate regulatory authorities.

Conference Call

A conference call, hosted by Emmanuel Babeau, Chief Financial Officer, will be webcast at 9:00 a.m., Eastern Time, on July 20, 2021. Access is at www.pmi.com/2021Q2earnings.

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CONSOLIDATED SHIPMENT VOLUME & MARKET SHARE


PMI Shipment Volume by Region	Second-Quarter				Six Months Year-to-Date
(million units)	2021	2020	Change		2021	2020	Change
Cigarettes
European Union	41,504	40,317	2.9	%	78,273	80,963	(3.3)	%
Eastern Europe	22,785	23,657	(3.7)	%	42,751	45,076	(5.2)	%
Middle East & Africa	30,347	27,188	11.6	%	57,989	57,184	1.4	%
South & Southeast Asia	35,321	33,346	5.9	%	70,209	70,941	(1.0)	%
East Asia & Australia	10,968	12,071	(9.1)	%	22,330	24,370	(8.4)	%
Latin America & Canada	15,213	14,780	2.9	%	30,098	29,843	0.9	%
Total PMI	156,138	151,359	3.2	%	301,650	308,377	(2.2)	%

Heated Tobacco Units
European Union	6,921	4,227	63.7	%	13,347	8,888	50.2	%
Eastern Europe	6,840	5,126	33.4	%	12,475	9,492	31.4	%
Middle East & Africa	512	185	+100%		908	655	38.6	%
South & Southeast Asia	39	—	—	%	72	—	—	%
East Asia & Australia	9,904	9,076	9.1	%	19,043	16,198	17.6	%
Latin America & Canada	140	94	48.9	%	245	202	21.3	%
Total PMI	24,356	18,708	30.2	%	46,090	35,435	30.1	%

Cigarettes and Heated Tobacco Units
European Union	48,425	44,544	8.7	%	91,620	89,851	2.0	%
Eastern Europe	29,625	28,783	2.9	%	55,226	54,568	1.2	%
Middle East & Africa	30,859	27,373	12.7	%	58,897	57,839	1.8	%
South & Southeast Asia	35,360	33,346	6.0	%	70,281	70,941	(0.9)	%
East Asia & Australia	20,872	21,147	(1.3)	%	41,373	40,568	2.0	%
Latin America & Canada	15,353	14,874	3.2	%	30,343	30,045	1.0	%
Total PMI	180,494	170,067	6.1	%	347,740	343,812	1.1	%

Second-Quarter

PMI's total shipment volume increased by 6.1%, driven by:

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

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

•Middle East & Africa, mainly reflecting higher cigarette shipment volume, primarily in North Africa (particularly Egypt), PMI Duty Free and Turkey, partly offset by the GCC (predominantly Saudi Arabia);

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

•Latin America & Canada, mainly reflecting higher cigarette shipment volume, notably in Mexico, partly offset by Argentina;

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partly offset by

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

PMI's cigarette shipment volume increase in the quarter includes a favorable comparison versus the second quarter of 2020, when pandemic-related disruption across many key markets was at its peak.

Impact of Inventory Movements

Excluding the net favorable impact of estimated distributor inventory movements of approximately 3.2 billion units, PMI’s total in-market sales increased by 4.2%, driven by a 27.6% increase in heated tobacco units and a 1.5% increase in cigarettes.

The net favorable impact of approximately 3.2 billion units reflected:

•A net favorable impact of 2.5 billion cigarettes, mainly driven by inventory movements in the second quarter of 2020 related to lower shipments to distributors due to the pandemic; and

•A net favorable impact of 0.7 billion heated tobacco units, primarily reflecting the need to maintain inventory durations for the growing category.

PMI's total heated tobacco unit in-market sales volume in the quarter was 23.0 billion units, reflecting sequential growth of 8.0% compared to the first quarter of 2021. The company believes that the current level of heated tobacco unit inventory is appropriate based on anticipated sales.

Six Months Year-to-Date

PMI's total shipment volume increased by 1.1%, driven by:

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

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

•Middle East & Africa, reflecting higher cigarette shipment volume (primarily in Turkey, partly offset by the GCC, North Africa and PMI Duty Free), as well as higher heated tobacco unit shipment volume (driven notably by the GCC and Lebanon, partly offset by PMI Duty Free);

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

•Latin America & Canada, reflecting higher cigarette shipment volume, primarily in Brazil and Mexico, partially offset by Argentina;

partly offset by

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

Impact of Inventory Movements

The net impact of estimated distributor inventory movements for the first half of the year was immaterial to PMI's total shipment volume performance. PMI’s total in-market sales volume increased by 0.5%.

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PMI Shipment Volume by Brand


PMI Shipment Volume by Brand	Second-Quarter				Six Months Year-to-Date
(million units)	2021	2020	Change		2021	2020	Change
Cigarettes
Marlboro	58,466	54,812	6.7	%	112,148	114,057	(1.7)	%
L&M	22,096	22,385	(1.3)	%	42,464	45,025	(5.7)	%
Chesterfield	14,269	12,604	13.2	%	27,027	25,507	6.0	%
Philip Morris	10,590	11,106	(4.6)	%	20,774	22,569	(7.9)	%
Parliament	10,023	8,462	18.4	%	18,980	16,035	18.4	%
Sampoerna A	9,186	7,254	26.6	%	17,884	15,802	13.2	%
Dji Sam Soe	5,422	5,797	(6.5)	%	11,126	11,972	(7.1)	%
Bond Street	4,630	6,428	(28.0)	%	9,158	12,041	(23.9)	%
Lark	3,882	4,189	(7.3)	%	7,781	8,213	(5.3)	%
Sampoerna Hijau	2,029	1,566	29.5	%	4,228	3,043	38.9	%
Others	15,545	16,756	(7.2)	%	30,080	34,113	(11.8)	%
Total Cigarettes	156,138	151,359	3.2	%	301,650	308,377	(2.2)	%
Heated Tobacco Units	24,356	18,708	30.2	%	46,090	35,435	30.1	%
Total PMI	180,494	170,067	6.1	%	347,740	343,812	1.1	%

Note: Sampoerna A includes Sampoerna; Philip Morris includes Philip Morris/Dubliss; and Lark includes Lark Harmony.

Second-Quarter

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

•Marlboro, mainly driven by Italy, PMI Duty Free, Spain and Turkey, partly offset by the GCC and Japan;

•Chesterfield, primarily driven by Russia, partly offset by Saudi Arabia;

•Parliament, mainly driven by Saudi Arabia and Turkey;

•Sampoerna A in Indonesia, primarily driven by premium A Mild; and

•Sampoerna Hijau in Indonesia.

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

•L&M, notably due to Germany, Saudi Arabia and Turkey, partly offset by North Africa, Spain and Thailand;

•Philip Morris, primarily due to Russia;

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

•Bond Street, primarily due to Russia;

•Lark, mainly due to Japan; and

•"Others," primarily due to: mid-price Fortune (Philippines) and Sampoerna U (Indonesia).

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

International Share of Market

PMI's total international market share (excluding China and the U.S.), defined as PMI's cigarette and heated tobacco unit sales volume as a percentage of total industry cigarette and heated tobacco unit sales volume, decreased by 0.8 points to 27.3%, reflecting:

•Total international market share for cigarettes of 23.8%, down by 1.3 points; and

•Total international market share for heated tobacco units of 3.5%, up by 0.5 points.

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PMI's total international cigarette sales volume as a percentage of total industry cigarette sales volume was down by 1.1 points to 24.9%, mainly reflecting lower cigarette market share and/or an unfavorable geographic mix impact, notably in France, Germany, Japan, the Philippines and Russia, partly offset by Indonesia, PMI Duty Free and Turkey.

Six Months Year-to-Date

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

•Chesterfield, mainly due to Brazil, the Philippines and Russia, partly offset by Saudi Arabia;

•Parliament, primarily due to Russia, Saudi Arabia and Turkey, partly offset by Japan;

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

•Sampoerna Hijau in Indonesia.

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

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

•L&M, notably due to Egypt, Germany, Poland and Turkey, partly offset by Spain and Thailand;

•Philip Morris, primarily due to Indonesia, Italy and Russia, partly offset by Japan;

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

•Bond Street, mainly due to Russia and Ukraine;

•Lark, primarily due to Japan; and

•"Others," notably due to: mid-price Fortune (Philippines), Hope (Philippines) and Sampoerna U (Indonesia); and low-price Jackpot (Philippines); partly offset by low-price Diana (Italy) and Morven (Pakistan).

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

International Share of Market

PMI's total international market share (excluding China and the U.S.) decreased by 0.8 points to 27.0%, reflecting:

•Total international market share for cigarettes of 23.5%, down by 1.4 points; and

•Total international market share for heated tobacco units of 3.5%, up by 0.6 points.

PMI's total international cigarette sales volume as a percentage of total industry cigarette sales volume was down by 1.2 points to 24.6%, mainly reflecting lower cigarette market share and/or an unfavorable geographic mix impact, notably in Japan, the Philippines and Russia, partly offset by Turkey.

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CONSOLIDATED FINANCIAL SUMMARY

Second-Quarter


Financial Summary - Quarters Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2021		2020		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 7,594		$ 6,651		14.2	%	7.9	%	943	420	226	575	(278)
Saudi Arabia Customs Assessments	(246)		—		—	%	—	%	(246)	—	—	—	(246)
Adjusted Net Revenues	$ 7,840		$ 6,651		17.9	%	11.6	%	1,189	420	226	575	(32)

Net Revenues (1)	$ 7,594		$ 6,651		14.2	%	7.9	%	943	420	226	575	(278)
Cost of Sales	(2,353)		(2,179)		(8.0)	%	(1.9)	%	(174)	(133)	—	(147)	106
Marketing, Administration and Research Costs	(2,093)		(1,722)		(21.5)	%	(12.3)	%	(371)	(159)	—	—	(212)
Amortization of Intangibles	(19)		(19)		—	%	5.3	%	—	(1)	—	—	1
Operating Income	$ 3,129		$ 2,731		14.6	%	9.9	%	398	127	226	428	(383)
Asset Impairment & Exit Costs (2)	(79)		(71)		(11.3)	%	(11.3)	%	(8)	—	—	—	(8)
Saudi Arabia Customs Assessments (3)	(246)		—		—	%	—	%	(246)	—	—	—	(246)



Adjusted Operating Income	$ 3,454		$ 2,802		23.3	%	18.7	%	652	127	226	428	(129)

Adjusted Operating Income Margin	44.1	%	42.1	%	2.0pp		2.7	pp

(1) Cost/Other variance includes a reduction in net revenues of $246 million in 2021 related to the Saudi Arabia customs assessments.
(2) Included in Marketing, Administration and Research Costs above.
(3) Included in Net Revenues above.

Net revenues increased by 7.9%, excluding currency, mainly reflecting: favorable volume/mix, primarily driven by higher heated tobacco unit volume (notably in the EU, particularly Italy and Poland, as well as Japan, Russia and Ukraine) and higher cigarette volume (mainly in Indonesia, Italy, PMI Duty Free and Spain, partly offset by the GCC, Germany, Japan and the Philippines); and a favorable pricing variance (notably driven by Germany, Japan, the Philippines, Russia and Turkey, partly offset by Indonesia); partly offset by the unfavorable impact of the Saudi Arabia customs assessments of $246 million, shown in "Cost/Other". Adjusted net revenues increased by 11.6% on an organic basis, as detailed above and in Schedule 5.

Operating income increased by 9.9%, excluding currency, primarily reflecting: favorable volume/mix, primarily driven by higher heated tobacco unit volume (reflecting the same geographies as for net revenues noted above); a favorable pricing variance; and lower manufacturing costs (driven by productivity gains related to reduced-risk and combustible products); partly offset by the unfavorable impact of the Saudi Arabia customs assessments (as noted above for net revenues); and higher marketing, administration and research costs.

Adjusted operating income increased by 18.7% on an organic basis. Adjusted operating income margin increased by 2.7 points on the same basis, as detailed in Schedule 8.

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Six Months Year-to-Date


Financial Summary - Six Months Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2021		2020		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 15,179		$ 13,804		10.0	%	5.3	%	1,375	645	432	544	(246)
Saudi Arabia Customs Assessments	(246)		—		—	%	—	%	(246)	—	—	—	(246)
Adjusted Net Revenues	$ 15,425		$ 13,804		11.7	%	7.1	%	1,621	645	432	544	—

Net Revenues (1)	$ 15,179		$ 13,804		10.0	%	5.3	%	1,375	645	432	544	(246)
Cost of Sales	(4,627)		(4,581)		(1.0)	%	3.8	%	(46)	(220)	—	(118)	292
Marketing, Administration and Research Costs	(3,942)		(3,666)		(7.5)	%	(4.5)	%	(276)	(110)	—	—	(166)
Amortization of Intangibles	(37)		(37)		—	%	2.7	%	—	(1)	—	—	1
Operating Income	$ 6,573		$ 5,520		19.1	%	13.4	%	1,053	314	432	426	(119)
Asset Impairment & Exit Costs (2)	(127)		(71)		(78.9)	%	(78.9)	%	(56)	—	—	—	(56)
Saudi Arabia Customs Assessments (3)	(246)		—		—	%	—	%	(246)	—	—	—	(246)

Adjusted Operating Income	$ 6,946		$ 5,591		24.2	%	18.6	%	1,355	314	432	426	183

Adjusted Operating Income Margin	45.0	%	40.5	%	4.5pp		4.4pp


(1) Cost/Other variance includes a reduction in net revenues of $246 million in 2021 related to the Saudi Arabia customs assessments.
(2) Included in Marketing, Administration and Research Costs above.
(3) Included in Net Revenues above.

Net revenues increased by 5.3%, excluding currency, mainly reflecting: favorable volume/mix, primarily driven by higher heated tobacco unit volume (notably in the EU, particularly Germany, Italy and Poland, as well as Japan, Russia and Ukraine), partly offset by lower cigarette volume (mainly in the EU Region, notably Germany, as well as Japan, Kuwait, North Africa, the Philippines and PMI Duty Free, partially offset by Indonesia and Turkey); and a favorable pricing variance (notably driven by Germany, Japan, North Africa, the Philippines, Russia and Turkey, partly offset by Indonesia and Poland); partially offset by the unfavorable impact of the Saudi Arabia customs assessments of $246 million, shown in "Cost/Other". Adjusted net revenues increased by 7.1% on an organic basis, as detailed above and in Schedule 5.

Operating income increased by 13.4%, excluding currency, primarily reflecting: a favorable pricing variance; favorable volume/mix, mainly driven by the same factors as for net revenues noted above; and lower manufacturing costs (driven by productivity gains related to reduced-risk and combustible products); partly offset by the unfavorable impact of the Saudi Arabia customs assessments (as noted above for net revenues); and higher marketing, administration and research costs, including higher asset impairment and exit costs (mainly related to organizational design optimization, as well as product distribution restructuring in South Korea).

Adjusted operating income increased by 18.6% on an organic basis. Adjusted operating income margin increased by 4.4 points on the same basis, as detailed in Schedule 8.

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EUROPEAN UNION REGION

Second-Quarter


Financial Summary - Quarters Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2021		2020		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 3,149		$ 2,475		27.2	%	15.6	%	674	288	35	351	—

Operating Income	$ 1,641		$ 1,178		39.3	%	24.2	%	463	178	35	304	(54)
Asset Impairment & Exit Costs (1)	(35)		(27)		(29.6)	%	(29.6)	%	(8)	—	—	—	(8)
Adjusted Operating Income	$ 1,676		$ 1,205		39.1	%	24.3	%	471	178	35	304	(46)

Adjusted Operating Income Margin	53.2	%	48.7	%	4.5pp		3.7pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues increased by 15.6% on an organic basis, reflecting: favorable volume/mix, mainly driven by higher heated tobacco unit volume (notably in Italy and Poland), partly offset by unfavorable cigarette volume/mix (notably unfavorable volume/mix in Germany, partly offset by higher volume in Italy and Spain); and a favorable pricing variance (driven by higher combustible pricing, particularly in Germany).

Operating income increased by 24.2%, excluding currency, primarily reflecting: favorable volume/mix, driven by the same factors as for net revenues noted above; lower manufacturing costs (driven mainly by combustible products); and a favorable pricing variance; partly offset by higher marketing, administration and research costs.

Adjusted operating income increased by 24.3% on an organic basis. Adjusted operating income margin increased by 3.7 points on the same basis, as detailed in Schedule 8.

Six Months Year-to-Date


Financial Summary - Six Months Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2021		2020		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 6,058		$ 5,010		20.9	%	10.5	%	1,048	523	72	453	—

Operating Income	$ 3,131		$ 2,336		34.0	%	19.7	%	795	334	72	405	(16)
Asset Impairment & Exit Costs (1)	(44)		(27)		(63.0)	%	(63.0)	%	(17)	—	—	—	(17)
Adjusted Operating Income	$ 3,175		$ 2,363		34.4	%	20.2	%	812	334	72	405	1

Adjusted Operating Income Margin	52.4	%	47.2	%	5.2pp		4.1pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues increased by 10.5% on an organic basis, reflecting: favorable volume/mix, mainly driven by higher heated tobacco unit volume (notably in Germany, Italy and Poland), partly offset by lower cigarette volume (notably in the Czech Republic, France and Germany) and unfavorable cigarette mix (particularly in Germany); and a favorable pricing variance (driven by higher combustible pricing, primarily in Germany, partly offset by Poland).

- 12 -

Operating income increased by 19.7%, excluding currency, primarily reflecting: favorable volume/mix, driven by the same factors as for net revenues noted above; lower manufacturing costs (driven by combustible and reduced-risk products); and a favorable pricing variance; partly offset by higher marketing, administration and research costs.

Adjusted operating income increased by 20.2% on an organic basis. Adjusted operating income margin increased by 4.1 points on the same basis, as detailed in Schedule 8.

Total Market, PMI Shipment & Market Share Commentaries


European Union Key Data	Second-Quarter						Six Months Year-to-Date
					Change						Change
	2021		2020		% / pp		2021		2020		% / pp
Total Market (billion units)	121.6		116.1		4.8	%	228.1		225.5		1.1	%

PMI Shipment Volume (million units)
Cigarettes	41,504		40,317		2.9	%	78,273		80,963		(3.3)	%
Heated Tobacco Units	6,921		4,227		63.7	%	13,347		8,888		50.2	%
Total EU	48,425		44,544		8.7	%	91,620		89,851		2.0	%

PMI Market Share
Marlboro	16.7	%	17.7	%	(1.0)		16.8	%	17.7	%	(0.9)
L&M	5.7	%	6.5	%	(0.8)		5.7	%	6.5	%	(0.8)
Chesterfield	5.4	%	5.5	%	(0.1)		5.4	%	5.6	%	(0.2)
Philip Morris	2.2	%	2.6	%	(0.4)		2.2	%	2.6	%	(0.4)
HEETS	5.5	%	3.9	%	1.6		5.6	%	3.9	%	1.7
Others	3.1	%	3.0	%	0.1		3.2	%	3.0	%	0.2
Total EU	38.6	%	39.2	%	(0.6)		38.9	%	39.3	%	(0.4)
Note: HEETS includes HEETS Dimensions.

Second-Quarter

The estimated total market in the EU increased by 4.8% to 121.6 billion units, mainly driven by:

•Denmark, up by +100%. Excluding the net favorable impact of estimated trade inventory movements, the total estimated market was down by 16.9%, primarily reflecting the impact of excise tax-driven price increases;

•Italy, up by 9.3%, mainly reflecting the impact on adult smoker average daily consumption of the easing of pandemic-related measures;

•Poland, up by 17.6%, primarily reflecting the impact on adult smoker average daily consumption and border sales of the easing of pandemic-related measures, as well as a lower prevalence of illicit trade; and

•Spain, up by 8.9%, or by 5.2% excluding the net favorable impact of estimated trade inventory movements, mainly reflecting the impact on in-bound tourism and border sales of the easing of pandemic-related measures;

partly offset by

•Germany, down by 7.2%, or by 1.9% excluding the net unfavorable impact of estimated trade inventory movements, primarily due to the impact of price increases.

- 13 -

PMI's total shipment volume increased by 8.7% to 48.4 billion units, primarily driven by:

•Italy, up by 25.8%, or by 11.4% excluding the net favorable impact of estimated distributor inventory movements, mainly reflecting the higher total market and a higher market share driven by heated tobacco units; and

•Spain, up by 51.5%, or by 8.3% excluding the net favorable impact of estimated distributor inventory movements, mainly reflecting the higher total market;

partly offset by

•Germany, down by 7.4%, mainly reflecting the lower total market.

Excluding the net favorable impact of estimated distributor inventory movements, PMI's total in-market sales volume increased by 3.2%.

Six Months Year-to-Date

The estimated total market in the EU increased by 1.1% to 228.1 billion units, primarily driven by:

•Italy, up by 5.4%, mainly reflecting the same factor as in the quarter; and

•Poland, up by 8.3%, primarily reflecting the same factors as in the quarter;

partly offset by

•Czech Republic, down by 10.8%, mainly reflecting the impact, in the first quarter of 2021, of lower border sales due to pandemic-related lockdown measures; and

•France, down by 5.1%, primarily reflecting the impact of excise tax-driven price increases and higher cross-border (non-domestic) purchases due to the easing of pandemic-related measures.

PMI's total shipment volume increased by 2.0% to 91.6 billion units, primarily driven by:

•Italy, up by 14.4%, or by 7.3% excluding the net favorable impact of estimated distributor inventory movements, mainly reflecting the same factors as in the quarter; and

•Spain, up by 7.0%, or by 0.5% excluding the net favorable impact of estimated distributor inventory movements, primarily reflecting the same factor as in the quarter;

partly offset by

•Czech Republic, down by 13.8%, mainly reflecting the lower total market and a lower market share (due to cigarettes, partly offset by heated tobacco units); and

•France, down by 7.1%, mainly reflecting the lower total market and a lower market share of cigarettes.

Excluding the net favorable impact of estimated distributor inventory movements, PMI's total in-market sales volume increased by 0.2%.

- 14 -

EASTERN EUROPE REGION

Second-Quarter


Financial Summary - Quarters Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2021		2020		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 895		$ 783		14.3	%	12.5	%	112	14	22	76	—

Operating Income	$ 314		$ 266		18.0	%	32.7	%	48	(39)	22	56	9
Asset Impairment & Exit Costs (1)	(7)		(7)		—	%	—	%	—	—	—	—	—

Adjusted Operating Income	$ 321		$ 273		17.6	%	31.9	%	48	(39)	22	56	9

Adjusted Operating Income Margin	35.9	%	34.9	%	1.0pp		6.0pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues increased by 12.5% on an organic basis, reflecting: favorable volume/mix, driven by higher heated tobacco unit volume (primarily in Russia and Ukraine), partly offset by unfavorable cigarette volume/mix (primarily in Russia); and a favorable pricing variance, mainly driven by higher combustible pricing (primarily in Kazakhstan, Russia and Ukraine).

Operating income increased by 32.7%, excluding currency, primarily reflecting: favorable volume/mix, driven by the same factors as for net revenues noted above; a favorable pricing variance; and lower manufacturing costs (primarily related to reduced-risk products, mainly in Russia).

Adjusted operating income increased by 31.9% on an organic basis. Adjusted operating income margin increased by 6.0 points on the same basis, as detailed in Schedule 8.

Six Months Year-to-Date


Financial Summary - Six Months Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2021		2020		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 1,691		$ 1,571		7.6	%	11.5	%	120	(61)	46	135	—

Operating Income	$ 575		$ 365		57.5	%	66.3	%	210	(32)	46	113	83
Asset Impairment & Exit Costs (1)	(9)		(7)		(28.6)	%	(28.6)	%	(2)	—	—	—	(2)


Adjusted Operating Income	$ 584		$ 372		57.0	%	65.6	%	212	(32)	46	113	85

Adjusted Operating Income Margin	34.5	%	23.7	%	10.8pp		11.5pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues increased by 11.5% on an organic basis, reflecting: favorable volume/mix, driven by higher heated tobacco unit volume (mainly in Russia and Ukraine), partly offset by unfavorable cigarette volume (primarily in Russia and Ukraine); and a favorable pricing variance, mainly driven by higher combustible pricing (primarily in Kazakhstan, Russia and Ukraine).

- 15 -

Operating income increased by 66.3%, excluding currency, primarily reflecting: favorable volume/mix, driven by the same factors as for net revenues noted above; lower manufacturing costs (mainly related to reduced-risk products, primarily in Russia); a favorable pricing variance; and lower marketing, administration and research costs.

Adjusted operating income increased by 65.6% on an organic basis. Adjusted operating income margin increased by 11.5 points on the same basis, as detailed in Schedule 8.

Total Market, PMI Shipment & Market Share Commentaries


PMI Shipment Volume	Second-Quarter				Six Months Year-to-Date
(million units)	2021	2020	Change		2021	2020	Change
Cigarettes	22,785	23,657	(3.7)	%	42,751	45,076	(5.2)	%
Heated Tobacco Units	6,840	5,126	33.4	%	12,475	9,492	31.4	%
Total Eastern Europe	29,625	28,783	2.9	%	55,226	54,568	1.2	%

Second-Quarter

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

•Russia, down by 2.7%, primarily reflecting the impact of excise tax-driven price increases, partly offset by the impact on adult smoker average daily consumption of the easing of pandemic-related measures; and

•Ukraine, down by 3.7%, mainly reflecting the impact of excise tax-driven price increases and a higher prevalence of illicit trade, partly offset by the impact on adult smoker average daily consumption of the easing of pandemic-related measures.

PMI's total shipment volume increased by 2.9% to 29.6 billion units, notably driven by:

•Ukraine, up by 8.8%, or by 5.0% excluding the net favorable impact of estimated distributor inventory movements, mainly reflecting a higher market share driven by heated tobacco units, partially offset by the lower total market;

partly offset by

•Russia, down by 1.7%. Excluding the net favorable impact of estimated distributor inventory movements (primarily due to cigarettes), PMI's in-market sales decreased by 6.0%, mainly reflecting a lower market share due to cigarettes and the lower total market.

Excluding the net favorable impact of estimated distributor inventory movements, PMI's total in-market sales volume decreased by 0.8%.

Six Months Year-to-Date

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

•Ukraine, down by 9.5%, mainly reflecting the same factors as in the quarter;

partly offset by

•Russia, up by 0.6%. Excluding the net favorable impact of estimated trade inventory movements, the total estimated market was down by 1.0%, primarily reflecting: the impact of excise tax-driven price increases,

- 16 -

partly offset by the impact on adult smoker average daily consumption of the easing of pandemic-related measures, as well as a lower estimated prevalence of illicit trade.

PMI's total shipment volume increased by 1.2% to 55.2 billion units, mainly driven by:

•Russia, up by 1.0%. Excluding the net favorable impact of estimated distributor inventory movements, PMI’s total in-market sales volume was down by 3.1%, primarily reflecting a lower market share due to cigarettes.

Excluding the net favorable impact of estimated distributor inventory movements, PMI's total in-market sales volume decreased by 1.2%.

MIDDLE EAST & AFRICA REGION

Second-Quarter


Financial Summary - Quarters Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2021		2020		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 560		$ 704		(20.5)	%	(18.2)	%	(144)	(16)	50	100	(278)
Saudi Arabia Customs Assessments	(246)		—		—	%	—	%	(246)	—	—	—	(246)
Adjusted Net Revenues	$ 806		$ 704		14.5	%	16.8	%	102	(16)	50	100	(32)

Net Revenues (1)	$ 560		$ 704		(20.5)	%	(18.2)	%	(144)	(16)	50	100	(278)

Operating Income	$ 16		$ 237		(93.2)	%	(79.7)	%	(221)	(32)	50	65	(304)
Asset Impairment & Exit Costs (2)	(8)		(9)		11.1	%	11.1	%	1	—	—	—	1
Saudi Arabia Customs Assessments (3)	(246)		—		—	%	—	%	(246)	—	—	—	(246)
Adjusted Operating Income	$ 270		$ 246		9.8	%	22.8	%	24	(32)	50	65	(59)
Adjusted Operating Income Margin	33.5	%	34.9	%	(1.4)pp		1.8pp
(1) Cost/Other variance includes a reduction in net revenues of $246 million in 2021 related to the Saudi Arabia customs assessments.
(2) Included in Marketing, Administration and Research Costs above.
(3) Included in Net Revenues above.

Net revenues decreased by 18.2%, excluding currency, predominantly due to the unfavorable impact of the Saudi Arabia customs assessments of $246 million, shown in "Cost/Other".

Adjusted net revenues increased by 16.8% on an organic basis, as detailed above and in Schedule 5, primarily reflecting: favorable volume/mix, mainly driven by higher cigarette volume (primarily in PMI Duty Free, South Africa and Turkey, partly offset by the GCC), as well as higher heated tobacco unit volume (mainly in PMI Duty Free); and a favorable pricing variance (driven by combustible pricing, mainly in Turkey); partly offset by lower fees for certain distribution rights billed to customers in certain markets, shown in "Cost/Other".

Operating income decreased by 79.7%, excluding currency, predominantly due to the unfavorable impact of the Saudi Arabia customs assessments, as noted above for net revenues.

Adjusted operating income increased by 22.8% on an organic basis, mainly reflecting: favorable volume/mix, due to the same factors as for net revenues noted above; and a favorable pricing variance; partly offset by higher

- 17 -

marketing, administration and research costs; and lower fees for certain distribution rights, as noted above for net revenues.

Adjusted operating income margin increased by 1.8 points on an organic basis, as detailed in Schedule 8.

Six Months Year-to-Date


Financial Summary - Six Months Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2021		2020		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 1,361		$ 1,580		(13.9)	%	(11.4)	%	(219)	(39)	127	(59)	(248)
Saudi Arabia Customs Assessments	(246)		—		—	%	—	%	(246)	—	—	—	(246)
Adjusted Net Revenues	$ 1,607		$ 1,580		1.7	%	4.2	%	(27)	(39)	127	(59)	(2)

Net Revenues (1)	$ 1,361		$ 1,580		(13.9)	%	(11.4)	%	(219)	(39)	127	(59)	(248)

Operating Income	$ 351		$ 558		(37.1)	%	(29.0)	%	(207)	(45)	127	(65)	(224)
Asset Impairment & Exit Costs (2)	(10)		(9)		(11.1)	%	(11.1)	%	(1)	—	—	—	(1)
Saudi Arabia Customs Assessments (3)	(246)		—		—	%	—	%	(246)	—	—	—	(246)
Adjusted Operating Income	$ 607		$ 567		7.1	%	15.0	%	40	(45)	127	(65)	23
Adjusted Operating Income Margin	37.8	%	35.9	%	1.9pp		3.7pp
(1) Cost/Other variance includes a reduction in net revenues of $246 million in 2021 related to the Saudi Arabia customs assessments.
(2) Included in Marketing, Administration and Research Costs above.
(3) Included in Net Revenues above.

Net revenues decreased by 11.4%, excluding currency, predominantly due to the unfavorable impact of the Saudi Arabia customs assessments of $246 million, shown in "Cost/Other".

Adjusted net revenues increased by 4.2% on an organic basis, as detailed above and in Schedule 5, primarily reflecting: a favorable pricing variance, driven by combustible pricing (mainly in Egypt and Turkey); partly offset by unfavorable volume/mix, mainly due to lower cigarette volume (primarily in Kuwait, North Africa and PMI Duty Free, partially offset by South Africa and Turkey), partly offset by favorable cigarette mix (primarily in PMI Duty Free, Saudi Arabia and Turkey).

Operating income decreased by 29.0%, excluding currency, predominantly due to the unfavorable impact of the Saudi Arabia customs assessments, as noted above for net revenues.

Adjusted operating income increased by 15.0% on an organic basis, mainly reflecting: a favorable pricing variance; and lower manufacturing costs; partly offset by unfavorable volume/mix, due to the same factors as for net revenues noted above.

Adjusted operating income margin increased by 3.7 points on an organic basis, as detailed in Schedule 8.

- 18 -

Total Market, PMI Shipment & Market Share Commentaries


PMI Shipment Volume	Second-Quarter				Six Months Year-to-Date
(million units)	2021	2020	Change		2021	2020	Change
Cigarettes	30,347	27,188	11.6	%	57,989	57,184	1.4	%
Heated Tobacco Units	512	185	+100%		908	655	38.6	%
Total Middle East & Africa	30,859	27,373	12.7	%	58,897	57,839	1.8	%

Second-Quarter

The estimated total market in the Middle East & Africa increased, mainly driven by:

•Egypt, up by 43.9%, or by 35.6% excluding the net favorable impact of estimated trade inventory movements, primarily reflecting: a favorable comparison due to pandemic-related supply-chain shortages involving competitors' products in the second quarter of 2020 and in-switching to cigarettes from other combustible tobacco products;

•International Duty Free, up by 54.1%, reflecting the impact of reduced government travel restrictions and increased passenger traffic in certain geographies;

•South Africa, reflecting a favorable comparison versus the second quarter of 2020, in which the total market was fully impacted by the pandemic-related ban on all tobacco sales from March 27, 2020, through August 17, 2020; and

•Turkey, up by 7.7%, mainly reflecting the impact on adult smoker average daily consumption of the easing of pandemic-related measures.

PMI's total shipment volume increased by 12.7% to 30.9 billion units, notably driven by:

•Egypt, up by 13.3%, primarily reflecting the higher total market, partly offset by a lower market share (due to an unfavorable comparison following pandemic-related supply-chain shortages involving competitors' products during the second quarter of 2020);

•PMI Duty Free, up by +100%, or by 89.3% excluding the net favorable impact of estimated distributor inventory movements, mainly reflecting the higher total market and a higher market share; and

•Turkey, up by 16.1%, primarily reflecting a higher market share, driven by the growth of Marlboro and Parliament, as well as the higher total market;

partly offset by

•Saudi Arabia, down by 27.1%, or by 5.7% excluding the net unfavorable impact of estimated distributor inventory movements, mainly reflecting a lower total market, partly offset by a higher market share of cigarettes (driven by Parliament) and heated tobacco units.

Six Months Year-to-Date

The estimated total market in the Middle East & Africa increased, mainly driven by:

•Egypt, up by 22.9%, or by 17.8% excluding the net favorable impact of estimated trade inventory movements, primarily reflecting the same factors as in the quarter;

•South Africa, up by 45.6%, primarily reflecting a favorable comparison versus the second quarter of 2020, in which the total market was fully impacted by the pandemic-related ban on all tobacco sales from March 27,

- 19 -

2020, through August 17, 2020, partly offset by a higher estimated prevalence of illicit trade stemming from the aforementioned ban; and

•Turkey, up by 2.8%, mainly reflecting the impact on adult smoker average daily consumption of the easing of pandemic-related measures, as well as a lower estimated prevalence of illicit trade related to cut tobacco (particularly in the first quarter of 2021);

partly offset by

•International Duty Free, down by 31.7%, primarily reflecting the impact of government travel restrictions and reduced passenger traffic since the start of the pandemic in March 2020.

PMI's total shipment volume increased by 1.8% to 58.9 billion units, notably driven by:

•Turkey, up by 12.2%, mainly reflecting a higher market share (driven by Marlboro and Parliament) and the higher total market;

partly offset by

•PMI Duty Free, down by 30.3%, or by 23.9% excluding the net unfavorable impact of estimated distributor inventory movements (principally due to cigarettes), mainly reflecting the lower total market, partly offset by a higher market share.

SOUTH & SOUTHEAST ASIA REGION

Second-Quarter


Financial Summary - Quarters Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2021		2020		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 1,046		$ 889		17.7	%	10.0	%	157	68	20	69	—

Operating Income	$ 331		$ 289		14.5	%	8.0	%	42	19	20	33	(30)
Asset Impairment & Exit Costs (1)	(10)		(11)		9.1	%	9.1	%	1	—	—	—	1
Adjusted Operating Income	$ 341		$ 300		13.7	%	7.3	%	41	19	20	33	(31)

Adjusted Operating Income Margin	32.6	%	33.7	%	(1.1)pp		(0.8)pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues increased by 10.0% on an organic basis, reflecting: favorable volume/mix, due to higher cigarette volume (primarily in Indonesia, partly offset by the Philippines); and a favorable pricing variance (driven by combustible pricing mainly in the Philippines, partly offset by Indonesia).

Operating income increased by 8.0%, excluding currency, primarily reflecting: favorable volume/mix, due to the same factors as for net revenues noted above; and a favorable pricing variance; partly offset by higher marketing, administration and research costs (mainly related to combustible products in Indonesia and the Philippines).

Adjusted operating income increased by 7.3% on an organic basis. Adjusted operating income margin decreased by 0.8 points on the same basis, as detailed in Schedule 8.

- 20 -

Six Months Year-to-Date


Financial Summary - Six Months Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2021		2020		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 2,219		$ 2,140		3.7	%	(0.8)	%	79	96	(18)	1	—

Operating Income	$ 860		$ 888		(3.2)	%	(6.8)	%	(28)	32	(18)	(39)	(3)
Asset Impairment & Exit Costs (1)	(13)		(11)		(18.2)	%	(18.2)	%	(2)	—	—	—	(2)
Adjusted Operating Income	$ 873		$ 899		(2.9)	%	(6.5)	%	(26)	32	(18)	(39)	(1)

Adjusted Operating Income Margin	39.3	%	42.0	%	(2.7)pp		(2.4)pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues decreased by 0.8% on an organic basis, reflecting: an unfavorable pricing variance, due to Indonesia, partially offset by the Philippines. Volume/mix was essentially stable, notably reflecting favorable cigarette mix (primarily in Indonesia and the Philippines), partly offset by lower cigarette volume (mainly in the Philippines, partially offset by Indonesia).

Operating income decreased by 6.8%, excluding currency, primarily reflecting: unfavorable volume/mix, due mainly to lower cigarette volume (primarily in the Philippines, partially offset by Indonesia), partly offset by favorable cigarette mix (mainly in Indonesia and the Philippines); and an unfavorable pricing variance.

Adjusted operating income decreased by 6.5% on an organic basis. Adjusted operating income margin decreased by 2.4 points on the same basis, as detailed in Schedule 8.

Total Market, PMI Shipment & Market Share Commentaries


PMI Shipment Volume	Second-Quarter				Six Months Year-to-Date
(million units)	2021	2020	Change		2021	2020	Change
Cigarettes	35,321	33,346	5.9	%	70,209	70,941	(1.0)	%
Heated Tobacco Units	39	—	—	%	72	—	—	%
Total South & Southeast Asia	35,360	33,346	6.0	%	70,281	70,941	(0.9)	%

Second-Quarter

The estimated total market in South & Southeast Asia increased, notably driven by:

•Bangladesh, up by 30.9%, primarily reflecting a favorable comparison versus the second quarter of 2020, during which pandemic-related restrictions impacted tobacco product availability;

•India, up by 35.7%, mainly reflecting a favorable comparison versus the second quarter of 2020, during which pandemic-related restrictions impacted the movement of certain products, including tobacco; and

•Indonesia, up by 12.4%, mainly reflecting the growth of the tax-advantaged 'below tier one' segment and the impact on adult smoker average daily consumption of the easing of pandemic-related measures.

PMI's total shipment volume increased by 6.0% to 35.4 billion units, notably driven by:

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•Indonesia, up by 11.5%, primarily reflecting the higher total market, partly offset by a lower market share (mainly due to adult smoker down-trading to the 'below tier one' segment as a result of significantly lower retail prices, partly offset by share growth for PMI's premium and hand-rolled kretek portfolio); and

•Thailand, up by 28.0%, or by 12.6% excluding the net favorable impact of estimated distributor inventory movements, primarily due to a higher total market and a higher market share (driven by L&M 7.1);

partly offset by

•the Philippines, down by 12.0%, mainly reflecting a lower market share (primarily due to mid-price Fortune, reflecting the impact of price increases in the fourth quarter of 2020, partly offset by Marlboro), as well as a lower total market.

Six Months Year-to-Date

The estimated total market in South & Southeast Asia increased, mainly driven by:

•Bangladesh, up by 13.2%, primarily reflecting the same factor as in the quarter;

•India, up by 16.7%, mainly reflecting the same factor as in the quarter;

•Indonesia, up by 8.7%, primarily reflecting the same factors as in the quarter;

•Pakistan, up by 14.6%, or by 9.3% excluding the net favorable impact of estimated trade inventory movements, notably reflecting a lower prevalence of illicit trade (partly due to pandemic-related supply disruptions for illicit products); and

•Vietnam, up by 7.4%, mainly reflecting a lower prevalence of illicit trade due to pandemic-related supply disruptions for illicit products;

partly offset by:

•the Philippines, down by 9.0%, primarily reflecting the impact of industry-wide price increases in the fourth quarter of 2020.

PMI's total shipment volume decreased by 0.9% to 70.3 billion units, notably due to:

•the Philippines, down by 18.3%, mainly reflecting the same factors as in the quarter;

partly offset by:

•Indonesia, up by 3.9%, primarily reflecting the same factors as in the quarter;

•Pakistan, up by 12.8%, mainly reflecting the higher total market; and

•Thailand, up by 9.1%, primarily reflecting the same factors as in the quarter.

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EAST ASIA & AUSTRALIA REGION

Second-Quarter


Financial Summary - Quarters Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2021		2020		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 1,514		$ 1,432		5.7	%	3.1	%	82	37	88	(43)	—

Operating Income	$ 715		$ 669		6.9	%	7.0	%	46	(1)	88	(40)	(1)
Asset Impairment & Exit Costs (1)	(15)		(13)		(15.4)	%	(15.4)	%	(2)	—	—	—	(2)
Adjusted Operating Income	$ 730		$ 682		7.0	%	7.2	%	48	(1)	88	(40)	1

Adjusted Operating Income Margin	48.2	%	47.6	%	0.6pp		1.9pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues increased by 3.1% on an organic basis, reflecting: a favorable pricing variance, primarily driven by higher heated tobacco and combustible pricing in Japan; and unfavorable volume/mix, mainly due to lower cigarette volume (primarily in Japan), partly offset by higher heated tobacco unit volume (predominantly in Japan).

Operating income increased by 7.0%, excluding currency, mainly reflecting: a favorable pricing variance; and lower manufacturing costs (primarily related to reduced-risk products in Japan); partly offset by higher marketing, administration and research costs; and unfavorable volume/mix, due to the same factors as for net revenues noted above.

Adjusted operating income increased by 7.2% on an organic basis. Adjusted operating income margin increased by 1.9 points on the same basis, as detailed in Schedule 8.

Six Months Year-to-Date


Financial Summary - Six Months Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2021		2020		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 2,986		$ 2,687		11.1	%	7.1	%	299	108	193	(2)	—

Operating Income	$ 1,410		$ 1,155		22.1	%	20.6	%	255	17	193	18	27
Asset Impairment & Exit Costs (1)	(46)		(13)		-(100)%		-(100)%		(33)	—	—	—	(33)
Adjusted Operating Income	$ 1,456		$ 1,168		24.7	%	23.2	%	288	17	193	18	60

Adjusted Operating Income Margin	48.8	%	43.5	%	5.3pp		6.5pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues increased by 7.1% on an organic basis, mainly reflecting: a favorable pricing variance, primarily driven by higher heated tobacco and combustible pricing in Japan. Volume/mix was essentially stable, mainly reflecting: lower cigarette volume (primarily in Japan and South Korea), unfavorable cigarette mix (mainly in

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Australia and Japan), lower device volume (primarily in Japan) and unfavorable heated tobacco unit mix in Japan, partly offset by higher heated tobacco unit volume in Japan.

Operating income increased by 20.6%, excluding currency, mainly reflecting: a favorable pricing variance; lower manufacturing costs (primarily related to reduced-risk products in Japan); and favorable volume/mix, driven by higher heated tobacco unit volume in Japan, partly offset by lower cigarette volume (mainly in Japan and South Korea), unfavorable cigarette mix (primarily in Australia and Japan) and unfavorable heated tobacco unit mix in Japan; partially offset by higher marketing, administration and research costs (mainly due to higher asset impairment and exit costs, primarily associated with product distribution restructuring in South Korea).

Adjusted operating income increased by 23.2%, on an organic basis. Adjusted operating income margin increased by 6.5 points on the same basis, as detailed in Schedule 8.

Total Market, PMI Shipment & Market Share Commentaries


PMI Shipment Volume	Second-Quarter				Six Months Year-to-Date
(million units)	2021	2020	Change		2021	2020	Change
Cigarettes	10,968	12,071	(9.1)	%	22,330	24,370	(8.4)	%
Heated Tobacco Units	9,904	9,076	9.1	%	19,043	16,198	17.6	%
Total East Asia & Australia	20,872	21,147	(1.3)	%	41,373	40,568	2.0	%

Second-Quarter

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

•Australia, down by 7.8%, or by 12.5% excluding the net favorable impact of estimated trade inventory movements, mainly reflecting the impact of the ending of the pandemic-related wage subsidy by the government; and

•South Korea, down by 1.6%, mainly reflecting the structural market trend.

PMI's total shipment volume decreased by 1.3% to 20.9 billion units, primarily due to:

•South Korea, down by 5.9%, mainly reflecting a lower market share (primarily due to the unfavorable impact of the growth of the cigarette new taste dimension segment, in which PMI has a relatively low share) and the lower total market.

Excluding the net unfavorable impact of estimated distributor inventory movements, PMI's total in-market sales volume was essentially stable.

Six Months Year-to-Date

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

•Japan, down by 4.2%, primarily reflecting the impact of excise tax-driven price increases.

PMI's total shipment volume increased by 2.0% to 41.4 billion units, notably driven by:

•Japan, up by 3.9%, mainly reflecting a higher market share driven by heated tobacco units, partially offset by the lower total market;

partly offset by

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•South Korea, down by 5.0%, primarily reflecting a lower market share (due to the same factor as in the quarter).

Excluding the net unfavorable impact of estimated distributor inventory movements, PMI's total in-market sales volume was stable.

LATIN AMERICA & CANADA REGION

Second-Quarter


Financial Summary - Quarters Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2021		2020		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 430		$ 368		16.8	%	9.0	%	62	29	11	22	—

Operating Income	$ 112		$ 92		21.7	%	19.6	%	20	2	11	10	(3)
Asset Impairment & Exit Costs (1)	(4)		(4)		—	%	—	%	—	—	—	—	—



Adjusted Operating Income	$ 116		$ 96		20.8	%	18.8	%	20	2	11	10	(3)

Adjusted Operating Income Margin	27.0	%	26.1	%	0.9pp		2.3pp

(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues increased by 9.0% on an organic basis, reflecting: favorable volume/mix, mainly driven by higher cigarette volume (primarily in Mexico); and a favorable pricing variance (driven by combustible products).

Operating income increased by 19.6%, excluding currency, primarily reflecting: a favorable pricing variance; and favorable volume/mix, due to the same factor as for net revenues noted above.

Adjusted operating income increased by 18.8% on an organic basis. Adjusted operating income margin increased by 2.3 points on the same basis, as detailed in Schedule 8.

Six Months Year-to-Date


Financial Summary - Six Months Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2021		2020		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 864		$ 816		5.9	%	3.7	%	48	18	12	16	2

Operating Income	$ 246		$ 218		12.8	%	9.2	%	28	8	12	(6)	14
Asset Impairment & Exit Costs (1)	(5)		(4)		(25.0)	%	(25.0)	%	(1)	—	—	—	(1)



Adjusted Operating Income	$ 251		$ 222		13.1	%	9.5	%	29	8	12	(6)	15

Adjusted Operating Income Margin	29.1	%	27.2	%	1.9pp		1.5pp

(1) Included in marketing, administration and research costs at the consolidated operating income level.

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Net revenues increased by 3.7% on an organic basis, mainly reflecting: favorable volume/mix, primarily driven by higher cigarette volume (mainly in Brazil and Mexico); and a favorable pricing variance, driven by higher combustible pricing (notably in Argentina and Colombia).

Operating income increased by 9.2%, excluding currency, primarily reflecting: lower marketing, administration and research costs; and a favorable pricing variance.

Adjusted operating income increased by 9.5% on an organic basis. Adjusted operating income margin increased by 1.5 points on the same basis, as detailed in Schedule 8.

Total Market, PMI Shipment & Market Share Commentaries


PMI Shipment Volume	Second-Quarter				Six Months Year-to-Date
(million units)	2021	2020	Change		2021	2020	Change
Cigarettes	15,213	14,780	2.9	%	30,098	29,843	0.9	%
Heated Tobacco Units	140	94	48.9	%	245	202	21.3	%
Total Latin America & Canada	15,353	14,874	3.2	%	30,343	30,045	1.0	%

Second-Quarter

The estimated total market in Latin America & Canada increased, mainly driven by:

•Argentina, up by 5.1%, or by 12.2% excluding the net unfavorable impact of estimated trade inventory movements, primarily reflecting a lower estimated prevalence of illicit trade and a favorable comparison related to retail out-of-stock in the second quarter of 2020 (due to temporary factory shutdowns related to the pandemic), partly offset by the impact of price increases;

•Brazil, up by 8.8%, mainly reflecting a lower estimated prevalence of illicit trade due to: reduced price gaps with legal products and the impact of border restrictions imposed as a result of the pandemic; and

•Mexico, up by 6.3%, primarily reflecting the impact on adult smoker consumption patterns of the easing of pandemic-related measures;

partly offset by

•Canada, down by 11.8%, notably reflecting the impact of price increases and out-switching from cigarettes to e-vapor products.

PMI's total shipment volume increased by 3.2% to 15.4 billion units, mainly driven by:

•Brazil, up by 7.3%, primarily reflecting the higher total market; and

•Mexico, up by 7.9%, mainly reflecting the higher total market and a higher market share (driven by Marlboro);

partly offset by

•Argentina, down by 4.8%, mainly reflecting a lower market share (primarily due to adult smoker down-trading to ultra-low-price brands produced by local manufacturers).

Six Months Year-to-Date

The estimated total market in Latin America & Canada increased, notably driven by:

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•Argentina, up by 11.5%, primarily reflecting the same factors as in the quarter;

•Brazil, up by 8.5%, mainly reflecting the same factors as in the quarter; and

•Mexico, up by 4.2%, primarily reflecting the same factors as in the quarter;

partly offset by

•Canada, down by 5.8%, mainly reflecting the same factors as in the quarter.

PMI's total shipment volume increased by 1.0% to 30.3 billion units, primarily driven by:

•Brazil, up by 8.5%, mainly reflecting the higher total market; and

•Mexico, up by 3.9%, primarily reflecting the higher total market;

partly offset by

•Argentina, down by 2.4%, mainly reflecting a lower market share (primarily due to the same factor as in the quarter).

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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, associated electronic devices and accessories, and other nicotine-containing products in markets outside the U.S. In addition, PMI ships versions of its IQOS Platform 1 device and consumables to Altria Group, Inc. for sale under license in the U.S., where these products have received marketing authorizations from the U.S. Food and Drug Administration (FDA) under the premarket tobacco product application (PMTA) pathway; the FDA has also authorized the marketing of a version of IQOS and its consumables as a Modified Risk Tobacco Product (MRTP), finding that an exposure modification order for these products is appropriate to promote the public health. PMI is building a future on a new category of smoke-free products that, while not risk-free, are a much better choice than continuing to smoke. Through multidisciplinary capabilities in product development, state-of-the-art facilities and scientific substantiation, PMI aims to ensure that its smoke-free products meet adult consumer preferences and rigorous regulatory requirements. PMI's smoke-free product portfolio includes heat-not-burn and nicotine-containing vapor products. As of June 30, 2021, PMI's smoke-free products are available for sale in 67 markets in key cities or nationwide, and PMI estimates that approximately 14.7 million adults around the world have already switched to IQOS and stopped smoking. For more information, please visit www.pmi.com and www.pmiscience.com.

Forward-Looking and Cautionary Statements

This press release contains projections of future results and other forward-looking statements. Achievement of future results is subject to risks, uncertainties and inaccurate assumptions. In the event that risks or uncertainties materialize, or underlying assumptions prove inaccurate, actual results could vary materially from those contained in such forward-looking statements. Pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, PMI is identifying important factors that, individually or in the aggregate, could cause actual results and outcomes to differ materially from those contained in any forward-looking statements made by PMI.

PMI's business risks include: excise tax increases and discriminatory tax structures; increasing marketing and regulatory restrictions that could reduce our competitiveness, eliminate our ability to communicate with adult consumers, or ban certain of our products; health concerns relating to the use of tobacco and other nicotine-containing products and exposure to environmental tobacco smoke; litigation related to tobacco use and intellectual property; intense competition; the effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; changes in adult smoker behavior; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations, and limitations on the ability to repatriate funds; adverse changes in applicable corporate tax laws; adverse changes in the cost, availability, and quality of tobacco and other agricultural products and raw materials, as well as components and materials for our electronic devices; and the integrity of its information systems and effectiveness of its data privacy policies. PMI's future profitability may also be adversely affected should it be unsuccessful in its attempts to 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

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best global talent. Future results are also subject to the lower predictability of our reduced-risk product category's performance.

In addition, PMI’s business risks also include risks and uncertainties related to PMI’s potential acquisitions of Fertin Pharma A/S (“Fertin”) and Vectura Group plc (“Vectura”), including, amongst other things: (1) the inability to consummate these acquisitions in a timely manner; (2) the inability to complete these acquisitions due to the failure to satisfy certain conditions to complete the acquisitions, including any required regulatory or stockholder approvals, as applicable; (3) the failure of these acquisitions to close for any other reason; (4) the possibility that the integration of the operations of Fertin and Vectura with those of PMI may be more difficult and/or take longer than anticipated, and may not accelerate PMI’s desired entry into additional smoke-free and beyond nicotine platforms as quickly as anticipated; (5) the possibility that the respective integrations of Fertin and Vectura into PMI may be more costly than anticipated and may have unanticipated adverse results relating to Fertin, Vectura or PMI’s existing businesses; (6) the inability to gain access to differentiated proprietary technology and pharmaceutical development expertise as anticipated by these acquisitions; (7) risks associated with third-party contracts containing consent and/or other provisions that may be triggered by the proposed acquisitions; (8) negative effects of the announcement or the consummation of the acquisitions on the market price of PMI’s common stock; and (9) the ability of PMI to retain and hire key personnel of Fertin and Vectura.

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

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

PMI is further subject to other risks detailed from time to time in its publicly filed documents, including the Form 10-Q for the quarter ended March 31, 2021. 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-

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looking statement that it may make from time to time, except in the normal course of its public disclosure obligations.

Key Terms, Definitions and Explanatory Notes

General

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

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

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

•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.

•2020 and 2021 estimates for total industry volume and market share in certain geographies reflect limitations on the availability and accuracy of industry data during pandemic-related restrictions.

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

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

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

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

•In July 2021, the Latin America & Canada operating segment was renamed as the Americas operating segment.

•"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) on March 22, 2019, PMI continues to report the volume of brands sold by RBH for which other PMI subsidiaries are the trademark owner. These include HEETS, Next, Philip Morris and Rooftop.

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

Financial

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

•Net revenues related to RRPs represent the sale of heated tobacco units, heat-not-burn 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

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recognizes revenue when control is transferred to the customer, typically either upon shipment or delivery of goods.

•Adjusted net revenues exclude the impact related to the Saudi Arabia customs assessments.

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

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

•"Cost/Other" in the Consolidated Financial Summary table of total PMI and the six 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); 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 and the Saudi Arabia customs assessment net revenue adjustment.

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

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

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

•Growth rates presented on an organic basis reflect currency-neutral underlying results.

•Management reviews net revenues, operating income, operating income margin, operating cash flow and earnings per share, or "EPS," on an adjusted basis, which may exclude the impact of currency and other items such as acquisitions, asset impairment and exit costs, tax items and other special items. Organic growth rates reflect the way management views underlying performance for these measures. PMI believes that such measures provide useful insight into underlying business trends and results.

•Management reviews these measures because they exclude changes in currency exchange rates and other factors that may distort underlying business trends, thereby improving the comparability of PMI’s business performance between reporting periods. Furthermore, PMI uses several of these measures in its management compensation program to promote internal fairness and a disciplined assessment of performance against company targets. PMI discloses these measures to enable investors to view the business through the eyes of management.

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

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

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

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

•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.

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

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

•“Total IQOS users” is defined as the estimated number of Legal Age (minimum 18 years) users of PMI heat-not-burn products for which PMI HTUs represented at least 5% of their daily tobacco consumption over the past seven days. Note: as of December 2020, PMI heat-not-burn products and HTUs include licensed KT&G heat-not-burn products and HTUs, respectively.

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

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

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

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

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 PMI's Platform 1 product, namely, IQOS 2.4, 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 followed 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 IQOS 2.4 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 orders.

•On July 7, 2020, the FDA authorized the marketing of a version of PMI's Platform 1 product, namely, IQOS 2.4, together with its heated tobacco units, as a Modified Risk Tobacco Product (MRTP). In doing so, the agency found that an IQOS exposure modification order is appropriate to promote the public health. The decision followed a review of the extensive scientific evidence package PMI submitted to the FDA in December 2016 to support its MRTP applications.

•On December 7, 2020, the FDA confirmed that the marketing of a version of PMI's Platform 1 product, namely, IQOS 3, is appropriate for the protection of public health and authorized it for sale in the U.S. The FDA’s decision followed an assessment of a PMI's PMTA filed with the agency in March 2020.

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

- 32 -


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

Quarters Ended June 30,
Market	Total Market, bio units			PMI Shipments, bio units									PMI Market Share, % (1)
				Total			Cigarette			HTU			Total			HTU
	2021	2020	% Change	2021	2020	% Change	2021	2020	% Change	2021	2020	% Change	2021	2020	pp Change	2021	2020	pp Change

Total	649.9	607.4	7.0	180.5	170.1	6.1	156.1	151.4	3.2	24.4	18.7	30.2	27.3	28.1	(0.8)	3.5	3.0	0.5

European Union
France	9.1	9.8	(7.6)	4.1	4.5	(7.8)	4.1	4.4	(7.8)	—	—	—	43.5	44.9	(1.4)	0.6	0.5	0.1
Germany	18.6	20.0	(7.2)	7.2	7.8	(7.4)	6.7	7.4	(9.1)	0.5	0.4	23.4	38.8	38.9	(0.1)	2.7	2.0	0.7
Italy	17.9	16.3	9.3	9.9	7.9	25.8	7.7	6.8	12.6	2.2	1.1	+100	53.1	52.1	1.0	11.2	7.7	3.5
Poland	12.5	10.6	17.6	4.7	4.2	12.1	3.9	3.7	5.1	0.8	0.5	67.7	37.5	39.3	(1.8)	6.3	4.4	1.9
Spain	10.5	9.6	8.9	4.1	2.7	51.5	4.0	2.7	50.2	0.1	0.1	+100	31.1	31.3	(0.2)	1.2	1.0	0.2

Eastern Europe
Russia	55.1	56.7	(2.7)	17.6	17.9	(1.7)	13.3	14.3	(7.1)	4.3	3.6	19.6	31.6	32.7	(1.1)	7.3	6.0	1.3

Middle East & Africa
Saudi Arabia	5.3	6.0	(12.4)	2.0	2.7	(27.1)	1.9	2.7	(29.6)	0.1	—	—	41.5	38.6	2.9	0.9	0.2	0.7
Turkey	30.5	28.3	7.7	13.5	11.7	16.1	13.5	11.7	16.1	—	—	—	44.3	41.1	3.2	—	—	—

South & Southeast Asia
Indonesia	71.7	63.8	12.4	20.1	18.0	11.5	20.1	18.0	11.5	—	—	—	28.1	28.3	(0.2)	—	—	—
Philippines	13.8	14.2	(3.0)	8.6	9.7	(12.0)	8.5	9.7	(12.4)	—	—	—	62.0	68.4	(6.4)	0.3	—	0.3

East Asia & Australia
Australia	2.4	2.6	(7.8)	0.7	0.8	(7.6)	0.7	0.8	(7.6)	—	—	—	30.8	30.8	—	—	—	—
Japan	35.0	35.1	(0.2)	14.2	14.1	0.4	5.5	6.3	(12.3)	8.6	7.8	10.6	38.3	36.8	1.5	22.7	20.2	2.5
South Korea	18.1	18.4	(1.6)	3.6	3.8	(5.9)	2.4	2.6	(7.4)	1.2	1.2	(2.7)	20.0	21.1	(1.1)	6.5	6.6	(0.1)

Latin America & Canada
Argentina	8.1	7.7	5.1	4.5	4.8	(4.8)	4.5	4.8	(4.8)	—	—	—	56.2	62.0	(5.8)	—	—	—

Mexico	8.0	7.6	6.3	5.1	4.7	7.9	5.0	4.7	7.7	—	—	—	63.0	62.1	0.9	0.3	0.2	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. "-" indicates volume below 50 million units and market share below 0.1%


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

Six Months Ended June 30,
Market	Total Market, bio units			PMI Shipments, bio units									PMI Market Share, % (1)
				Total			Cigarette			HTU			Total			HTU
	2021	2020	% Change	2021	2020	% Change	2021	2020	% Change	2021	2020	% Change	2021	2020	pp Change	2021	2020	pp Change

Total	1,265.1	1,222.6	3.5	347.7	343.8	1.1	301.7	308.4	(2.2)	46.1	35.4	30.1	27.0	27.8	(0.8)	3.5	2.9	0.6

European Union
France	17.3	18.2	(5.1)	7.9	8.5	(7.1)	7.8	8.4	(7.3)	0.1	0.1	13.2	43.6	44.7	(1.1)	0.6	0.4	0.2
Germany	36.0	36.0	(0.2)	14.3	14.5	(1.6)	13.2	13.7	(4.1)	1.1	0.8	41.4	39.8	40.4	(0.6)	3.1	2.2	0.9
Italy	33.8	32.0	5.4	19.5	17.1	14.4	15.1	14.6	3.9	4.4	2.5	75.7	52.9	52.0	0.9	11.2	7.5	3.7
Poland	23.2	21.5	8.3	8.6	8.5	1.4	7.3	7.6	(4.1)	1.4	0.9	46.5	37.1	39.7	(2.6)	5.9	4.3	1.6
Spain	20.1	20.0	0.3	6.8	6.4	7.0	6.6	6.2	6.7	0.2	0.2	14.3	31.1	31.1	—	1.2	1.0	0.2

Eastern Europe
Russia	104.2	103.6	0.6	33.3	32.9	1.0	25.4	26.7	(4.9)	7.9	6.2	26.3	31.3	32.6	(1.3)	7.5	6.2	1.3

Middle East & Africa
Saudi Arabia	10.7	10.3	4.1	4.2	3.8	11.4	4.1	3.8	9.0	0.1	—	—	41.8	39.4	2.4	0.8	0.1	0.7
Turkey	55.8	54.3	2.8	24.5	21.8	12.2	24.5	21.8	12.2	—	—	—	43.9	40.1	3.8	—	—	—

South & Southeast Asia
Indonesia	142.7	131.3	8.7	40.0	38.5	3.9	40.0	38.5	3.9	—	—	—	28.0	29.3	(1.3)	—	—	—
Philippines	26.9	29.5	(9.0)	16.7	20.5	(18.3)	16.7	20.5	(18.6)	0.1	—	—	62.2	69.3	(7.1)	0.3	—	0.3

East Asia & Australia
Australia	4.8	5.1	(6.1)	1.5	1.5	1.6	1.5	1.5	1.6	—	—	—	31.8	29.4	2.4	—	—	—
Japan	67.6	70.6	(4.2)	28.0	26.9	3.9	11.4	13.1	(13.0)	16.5	13.8	20.1	38.7	36.6	2.1	23.0	19.7	3.3
South Korea	34.9	34.6	0.8	7.0	7.4	(5.0)	4.7	5.1	(7.9)	2.3	2.3	1.2	20.0	21.4	(1.4)	6.6	6.6	—

Latin America & Canada
Argentina	17.5	15.7	11.5	9.8	10.0	(2.4)	9.8	10.0	(2.4)	—	—	—	56.0	64.0	(8.0)	—	—	—

Mexico	14.8	14.2	4.2	9.1	8.8	3.9	9.1	8.7	3.7	—	—	—	61.4	61.6	(0.2)	0.3	0.2	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. "-" indicates volume below 50 million units and market share below 0.1%


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

		Quarters Ended					Diluted EPS		Six Months Ended
	June 30,							June 30,
			$	1.39			2021 Diluted Earnings Per Share (1)			$	2.93
			$	1.25			2020 Diluted Earnings Per Share (1)			$	2.42
			$	0.14			Change			$	0.51
			11.2			%	% Change			21.1			%

							Reconciliation:
			$	1.25			2020 Diluted Earnings Per Share (1)			$	2.42
			0.04				2020 Asset impairment and exit costs			0.04



			—				2020 Fair value adjustment for equity security investments			0.04
			—				2020 Tax items			—
			(0.04)				2021 Asset impairment and exit costs			(0.07)

			(0.14)				2021 Saudi Arabia customs assessments			(0.14)


			—				2021 Tax items			—
			0.05				Currency			0.15
			—				Interest			(0.01)
			(0.01)				Change in tax rate			0.03

			0.24				Operations (2)			0.47
			$	1.39			2021 Diluted Earnings Per Share (1)			$	2.93

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

		Quarters Ended							Six Months Ended
		June 30,							June 30,
		2021			2020				2021			2020
		$ 2,172			$ 1,947		Net Earnings attributable to PMI		$ 4,590			$ 3,773
		6			5		Less: Distributed and undistributed earnings attributable to share-based payment awards		14			10
		$ 2,166			$ 1,942		Net Earnings for basic and diluted EPS		$ 4,576			$ 3,763

		1,558			1,558		Weighted-average shares for basic EPS		1,558			1,557
		2			—		Plus Contingently Issuable Performance Stock Units		2			—
		1,560			1,558		Weighted-average shares for diluted EPS		1,560			1,557

(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 June 30,					Six Months Ended June 30,
2021	2020	% Change			2021	2020	% Change
$ 1.39	$ 1.25	11.2	%	Reported Diluted EPS	$ 2.93	$ 2.42	21.1	%
0.05				Less: Currency	0.15
$ 1.34	$ 1.25	7.2	%	Reported Diluted EPS, excluding Currency	$ 2.78	$ 2.42	14.9	%


Quarters Ended June 30,					Six Months Ended June 30,					Year Ended
2021	2020	% Change			2021	2020	% Change			2020
$ 1.39	$ 1.25	11.2	%	Reported Diluted EPS	$ 2.93	$ 2.42	21.1	%		$ 5.16
0.14	—			Saudi Arabia customs assessments	0.14	—				—
0.04	0.04			Asset impairment and exit costs	0.07	0.04				0.08


—	—			Fair value adjustment for equity security investments	—	0.04				0.04
—	—			Tax items	—	—				(0.06)
—	—			Brazil indirect tax credit	—	—				(0.05)
$ 1.57	$ 1.29	21.7	%	Adjusted Diluted EPS	$ 3.14	$ 2.50	25.6	%		$ 5.17
0.05				Less: Currency	0.15
$ 1.52	$ 1.29	17.8	%	Adjusted Diluted EPS, excluding Currency	$ 2.99	$ 2.50	19.6	%


										Schedule 3
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions
($ in millions) / (Unaudited)

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

2021						Combustible Products	2020	% Change
$ 2,162		$ 198	$ 1,965	$ —	$ 1,965	European Union	$ 1,945	11.2	%	1.0	%	1.0	%
555		8	547	—	547	Eastern Europe	522	6.2	%	4.6	%	4.6	%
527	(1)	(17)	544	—	544	Middle East & Africa	696	(24.2)	%	(21.9)	%	(21.9)	%
1,045		68	977	—	977	South & Southeast Asia	889	17.5	%	9.8	%	9.8	%
611		26	586	—	586	East Asia & Australia	630	(3.0)	%	(7.1)	%	(7.1)	%
418		29	389	—	389	Latin America & Canada	363	15.3	%	7.4	%	7.4	%
$ 5,318		$ 312	$ 5,007	$ —	$ 5,007	Total Combustible	$ 5,045	5.4	%	(0.8)	%	(0.8)	%

2021						Reduced-Risk Products	2020	% Change
$ 987		$ 90	$ 896	$ —	$ 896	European Union	$ 530	86.2	%	69.1	%	69.1	%
340		6	334	—	334	Eastern Europe	261	30.5	%	28.3	%	28.3	%
33		1	32	—	32	Middle East & Africa	8	+100%		+100%		+100%
1		—	1	—	1	South & Southeast Asia	—	—	%	—	%	—	%
903		11	891	—	891	East Asia & Australia	802	12.6	%	11.2	%	11.2	%
12		—	12	—	12	Latin America & Canada	5	+100%		+100%		+100%
$ 2,276		$ 108	$ 2,167	$ —	$ 2,167	Total RRPs	$ 1,606	41.7	%	35.0	%	35.0	%

2021						PMI	2020	% Change
$ 3,149		$ 288	$ 2,861	$ —	$ 2,861	European Union	$ 2,475	27.2	%	15.6	%	15.6	%
895		14	881	—	881	Eastern Europe	783	14.3	%	12.5	%	12.5	%
560	(1)	(16)	576	—	576	Middle East & Africa	704	(20.5)	%	(18.2)	%	(18.2)	%
1,046		68	978	—	978	South & Southeast Asia	889	17.7	%	10.0	%	10.0	%
1,514		37	1,477	—	1,477	East Asia & Australia	1,432	5.7	%	3.1	%	3.1	%
430		29	401	—	401	Latin America & Canada	368	16.8	%	9.0	%	9.0	%
$ 7,594		$ 420	$ 7,174	$ —	$ 7,174	Total PMI	$ 6,651	14.2	%	7.9	%	7.9	%

(1) Includes a reduction in net revenues of $246 million related to the Saudi Arabia customs assessments
Note: Sum of product categories or Regions might not foot to Total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million


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

Net Revenues		Currency	Net Revenues excluding Currency	Acquisitions	Net Revenues excluding Currency & Acquisitions	Six Months Ended June 30,	Net Revenues	Total		Excluding Currency		Excluding Currency & Acquisitions

2021						Combustible Products	2020	% Change
$ 4,113		$ 357	$ 3,755	$ —	$ 3,755	European Union	$ 3,855	6.7	%	(2.6)	%	(2.6)	%
1,047		(22)	1,069	—	1,069	Eastern Europe	1,045	0.1	%	2.3	%	2.3	%
1,307	(1)	(40)	1,347	—	1,347	Middle East & Africa	1,528	(14.5)	%	(11.9)	%	(11.9)	%
2,216		96	2,120	—	2,120	South & Southeast Asia	2,140	3.5	%	(0.9)	%	(0.9)	%
1,259		60	1,199	—	1,199	East Asia & Australia	1,272	(1.0)	%	(5.7)	%	(5.7)	%
840		18	822	—	822	Latin America & Canada	803	4.6	%	2.4	%	2.4	%
$ 10,781		$ 469	$ 10,312	$ —	$ 10,312	Total Combustible	$ 10,643	1.3	%	(3.1)	%	(3.1)	%

2021						Reduced-Risk Products	2020	% Change
$ 1,945		$ 166	$ 1,780	$ —	$ 1,780	European Union	$ 1,155	68.5	%	54.1	%	54.1	%
644		(39)	683	—	683	Eastern Europe	526	22.6	%	29.9	%	29.9	%
54		1	53	—	53	Middle East & Africa	52	4.0	%	2.6	%	2.6	%
3		—	3	—	3	South & Southeast Asia	—	—	%	—	%	—	%
1,727		48	1,679	—	1,679	East Asia & Australia	1,415	22.0	%	18.7	%	18.7	%
24		—	24	—	24	Latin America & Canada	13	79.5	%	77.0	%	77.0	%
$ 4,398		$ 176	$ 4,222	$ —	$ 4,222	Total RRPs	$ 3,161	39.1	%	33.6	%	33.6	%

2021						PMI	2020	% Change
$ 6,058		$ 523	$ 5,535	$ —	$ 5,535	European Union	$ 5,010	20.9	%	10.5	%	10.5	%
1,691		(61)	1,752	—	1,752	Eastern Europe	1,571	7.6	%	11.5	%	11.5	%
1,361	(1)	(39)	1,400	—	1,400	Middle East & Africa	1,580	(13.9)	%	(11.4)	%	(11.4)	%
2,219		96	2,123	—	2,123	South & Southeast Asia	2,140	3.7	%	(0.8)	%	(0.8)	%
2,986		108	2,878	—	2,878	East Asia & Australia	2,687	11.1	%	7.1	%	7.1	%
864		18	846	—	846	Latin America & Canada	816	5.9	%	3.7	%	3.7	%
$ 15,179		$ 645	$ 14,534	$ —	$ 14,534	Total PMI	$ 13,804	10.0	%	5.3	%	5.3	%

(1) Includes a reduction in net revenues of $246 million related to the Saudi Arabia customs assessments
Note: Sum of product categories or Regions might not foot to Total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million


															Schedule 5
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Net Revenues to Adjusted Net Revenues, excluding Currency and Acquisitions
($ in millions) / (Unaudited)

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

2021								Quarters Ended June 30,		2020			% Change
$ 3,149	$ —		$ 3,149	$ 288	$ 2,861	$ —	$ 2,861		European Union	$ 2,475	$ —	$ 2,475	27.2	%	15.6	%	15.6	%
895	—		895	14	881	—	881		Eastern Europe	783	—	783	14.3	%	12.5	%	12.5	%
560	(246)	(1)	806	(16)	822	—	822		Middle East & Africa	704	—	704	14.5	%	16.8	%	16.8	%
1,046	—		1,046	68	978	—	978		South & Southeast Asia	889	—	889	17.7	%	10.0	%	10.0	%
1,514	—		1,514	37	1,477	—	1,477		East Asia & Australia	1,432	—	1,432	5.7	%	3.1	%	3.1	%
430	—		430	29	401	—	401		Latin America & Canada	368	—	368	16.8	%	9.0	%	9.0	%
$ 7,594	$ (246)		$ 7,840	$ 420	$ 7,420	$ —	$ 7,420		Total PMI	$ 6,651	$ —	$ 6,651	17.9	%	11.6	%	11.6	%

2021								Six Months Ended June 30,		2020			% Change
$ 6,058	$ —		$ 6,058	$ 523	$ 5,535	$ —	$ 5,535		European Union	$ 5,010	$ —	$ 5,010	20.9	%	10.5	%	10.5	%
1,691	—		1,691	(61)	1,752	—	1,752		Eastern Europe	1,571	—	1,571	7.6	%	11.5	%	11.5	%
1,361	(246)	(1)	1,607	(39)	1,646	—	1,646		Middle East & Africa	1,580	—	1,580	1.7	%	4.2	%	4.2	%
2,219	—		2,219	96	2,123	—	2,123		South & Southeast Asia	2,140	—	2,140	3.7	%	(0.8)	%	(0.8)	%
2,986	—		2,986	108	2,878	—	2,878		East Asia & Australia	2,687	—	2,687	11.1	%	7.1	%	7.1	%
864	—		864	18	846	—	846		Latin America & Canada	816	—	816	5.9	%	3.7	%	3.7	%
$ 15,179	$ (246)		$ 15,425	$ 645	$ 14,780	$ —	$ 14,780		Total PMI	$ 13,804	$ —	$ 13,804	11.7	%	7.1	%	7.1	%

(1) Represents the Saudi Arabia customs assessments


											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

2021						Quarters Ended June 30,	2020		% Change
$ 1,641	(1)	$ 178	$ 1,463	$ —	$ 1,463	European Union	$ 1,178	(3)	39.3	%	24.2	%	24.2	%
314	(1)	(39)	353	—	353	Eastern Europe	266	(3)	18.0	%	32.7	%	32.7	%
16	(2)	(32)	48	—	48	Middle East & Africa	237	(3)	(93.2)	%	(79.7)	%	(79.7)	%
331	(1)	19	312	—	312	South & Southeast Asia	289	(3)	14.5	%	8.0	%	8.0	%
715	(1)	(1)	716	—	716	East Asia & Australia	669	(3)	6.9	%	7.0	%	7.0	%
112	(1)	2	110	—	110	Latin America & Canada	92	(3)	21.7	%	19.6	%	19.6	%
$ 3,129		$ 127	$ 3,002	$ —	$ 3,002	Total PMI	$ 2,731		14.6	%	9.9	%	9.9	%

2021						Six Months Ended June 30,	2020		% Change
$ 3,131	(4)	$ 334	$ 2,797	$ —	$ 2,797	European Union	$ 2,336	(3)	34.0	%	19.7	%	19.7	%
575	(4)	(32)	607	—	607	Eastern Europe	365	(3)	57.5	%	66.3	%	66.3	%
351	(5)	(45)	396	—	396	Middle East & Africa	558	(3)	(37.1)	%	(29.0)	%	(29.0)	%
860	(4)	32	828	—	828	South & Southeast Asia	888	(3)	(3.2)	%	(6.8)	%	(6.8)	%
1,410	(4)	17	1,393	—	1,393	East Asia & Australia	1,155	(3)	22.1	%	20.6	%	20.6	%
246	(4)	8	238	—	238	Latin America & Canada	218	(3)	12.8	%	9.2	%	9.2	%
$ 6,573		$ 314	$ 6,259	$ —	$ 6,259	Total PMI	$ 5,520		19.1	%	13.4	%	13.4	%

(1) Includes asset impairment and exit costs: EU ($35 million), EE ($7 million), S&SA ($10 million), EA&A ($15 million) and LA&C ($4 million)
(2) Includes the Saudi Arabia customs assessments ($246 million) and asset impairment and exit costs ($8 million)
(3) Includes asset impairment and exit costs ($71 million): EU ($27 million), EE ($7 million), ME&A ($9 million), S&SA ($11 million), EA&A ($13 million) and LA&C ($4 million)
(4) Includes asset impairment and exit costs: EU ($44 million), EE ($9 million), S&SA ($13 million), EA&A ($46 million) and LA&C ($5 million)
(5) Includes the Saudi Arabia customs assessments ($246 million) and asset impairment and exit costs ($10 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

2021								Quarters Ended June 30,		2020			% Change
$ 1,641	$ (35)	(1)	$ 1,676	$ 178	$ 1,498	$ —	$ 1,498		European Union	$ 1,178	$ (27)	$ 1,205	39.1	%	24.3	%	24.3	%
314	(7)	(1)	321	(39)	360	—	360		Eastern Europe	266	(7)	273	17.6	%	31.9	%	31.9	%
16	(254)	(2)	270	(32)	302	—	302		Middle East & Africa	237	(9)	246	9.8	%	22.8	%	22.8	%
331	(10)	(1)	341	19	322	—	322		South & Southeast Asia	289	(11)	300	13.7	%	7.3	%	7.3	%
715	(15)	(1)	730	(1)	731	—	731		East Asia & Australia	669	(13)	682	7.0	%	7.2	%	7.2	%
112	(4)	(1)	116	2	114	—	114		Latin America & Canada	92	(4)	96	20.8	%	18.8	%	18.8	%
$ 3,129	$ (325)		$ 3,454	$ 127	$ 3,327	$ —	$ 3,327		Total PMI	$ 2,731	$ (71)	$ 2,802	23.3	%	18.7	%	18.7	%

2021								Six Months Ended June 30,		2020			% Change
$ 3,131	$ (44)	(1)	$ 3,175	$ 334	$ 2,841	$ —	$ 2,841		European Union	$ 2,336	$ (27)	$ 2,363	34.4	%	20.2	%	20.2	%
575	(9)	(1)	584	(32)	616	—	616		Eastern Europe	365	(7)	372	57.0	%	65.6	%	65.6	%
351	(256)	(3)	607	(45)	652	—	652		Middle East & Africa	558	(9)	567	7.1	%	15.0	%	15.0	%
860	(13)	(1)	873	32	841	—	841		South & Southeast Asia	888	(11)	899	(2.9)	%	(6.5)	%	(6.5)	%
1,410	(46)	(1)	1,456	17	1,439	—	1,439		East Asia & Australia	1,155	(13)	1,168	24.7	%	23.2	%	23.2	%
246	(5)	(1)	251	8	243	—	243		Latin America & Canada	218	(4)	222	13.1	%	9.5	%	9.5	%
$ 6,573	$ (373)		$ 6,946	$ 314	$ 6,632	$ —	$ 6,632		Total PMI	$ 5,520	$ (71)	$ 5,591	24.2	%	18.6	%	18.6	%

(1) Represents asset impairment and exit costs
(2) Includes the Saudi Arabia customs assessments ($246 million) and asset impairment and exit costs ($8 million)
(3) Includes the Saudi Arabia customs assessments ($246 million) and asset impairment and exit costs ($10 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)	Adjusted Net Revenues (2)	Adjusted Operating Income Margin		Adjusted Operating Income excluding Currency (1)	Adjusted Net Revenues excluding Currency (2)	Adjusted Operating Income Margin excluding Currency		Adjusted Operating Income excluding Currency & Acqui-sitions (1)	Adjusted Net Revenues excluding Currency & Acqui-sitions (2)	Adjusted Operating Income Margin excluding Currency & Acqui-sitions				Adjusted Operating Income (1)	Adjusted Net Revenues (2)	Adjusted Operating Income Margin		Adjusted Operating Income Margin	Adjusted Operating Income Margin excluding Currency	Adjusted Operating Income Margin excluding Currency & Acqui-sitions

2021												Quarters Ended June 30,		2020				% Points Change
$ 1,676	$ 3,149	53.2	%	$ 1,498	$ 2,861	52.4	%	$ 1,498	$ 2,861	52.4	%		European Union	$ 1,205	$ 2,475	48.7	%	4.5	3.7	3.7
321	895	35.9	%	360	881	40.9	%	360	881	40.9	%		Eastern Europe	273	783	34.9	%	1.0	6.0	6.0
270	806	33.5	%	302	822	36.7	%	302	822	36.7	%		Middle East & Africa	246	704	34.9	%	(1.4)	1.8	1.8
341	1,046	32.6	%	322	978	32.9	%	322	978	32.9	%		South & Southeast Asia	300	889	33.7	%	(1.1)	(0.8)	(0.8)
730	1,514	48.2	%	731	1,477	49.5	%	731	1,477	49.5	%		East Asia & Australia	682	1,432	47.6	%	0.6	1.9	1.9
116	430	27.0	%	114	401	28.4	%	114	401	28.4	%		Latin America & Canada	96	368	26.1	%	0.9	2.3	2.3
$ 3,454	$ 7,840	44.1	%	$ 3,327	$ 7,420	44.8	%	$ 3,327	$ 7,420	44.8	%		Total PMI	$ 2,802	$ 6,651	42.1	%	2.0	2.7	2.7

2021												Six Months Ended June 30,		2020				% Points Change
$ 3,175	$ 6,058	52.4	%	$ 2,841	$ 5,535	51.3	%	$ 2,841	$ 5,535	51.3	%		European Union	$ 2,363	$ 5,010	47.2	%	5.2	4.1	4.1
584	1,691	34.5	%	616	1,752	35.2	%	616	1,752	35.2	%		Eastern Europe	372	1,571	23.7	%	10.8	11.5	11.5
607	1,607	37.8	%	652	1,646	39.6	%	652	1,646	39.6	%		Middle East & Africa	567	1,580	35.9	%	1.9	3.7	3.7
873	2,219	39.3	%	841	2,123	39.6	%	841	2,123	39.6	%		South & Southeast Asia	899	2,140	42.0	%	(2.7)	(2.4)	(2.4)
1,456	2,986	48.8	%	1,439	2,878	50.0	%	1,439	2,878	50.0	%		East Asia & Australia	1,168	2,687	43.5	%	5.3	6.5	6.5
251	864	29.1	%	243	846	28.7	%	243	846	28.7	%		Latin America & Canada	222	816	27.2	%	1.9	1.5	1.5
$ 6,946	$ 15,425	45.0	%	$ 6,632	$ 14,780	44.9	%	$ 6,632	$ 14,780	44.9	%		Total PMI	$ 5,591	$ 13,804	40.5	%	4.5	4.4	4.4


(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 Adjusted Net Revenues excluding currency and acquisitions refer to Schedule 5


						Schedule 9
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Condensed Statements of Earnings
($ in millions, except per share data) / (Unaudited)

Quarters Ended June 30,					Six Months Ended June 30,
2021	2020	Change Fav./(Unfav.)			2021	2020	Change Fav./(Unfav.)
$ 20,421	$ 17,819	14.6	%	Revenues including Excise Taxes (1)	$ 39,776	$ 36,072	10.3	%
12,827	11,168	(14.9)	%	Excise Taxes on products	24,597	22,268	(10.5)	%
7,594	6,651	14.2	%	Net Revenues (1)	15,179	13,804	10.0	%
2,353	2,179	(8.0)	%	Cost of sales	4,627	4,581	(1.0)	%
5,241	4,472	17.2	%	Gross profit	10,552	9,223	14.4	%
2,093	1,722	(21.5)	%	Marketing, administration and research costs (2)	3,942	3,666	(7.5)	%
19	19			Amortization of intangibles	37	37
3,129	2,731	14.6	%	Operating Income	6,573	5,520	19.1	%
161	162	0.6	%	Interest expense, net	328	291	(12.7)	%
27	22	(22.7)	%	Pension and other employee benefit costs	55	45	(22.2)	%
2,941	2,547	15.5	%	Earnings before income taxes	6,190	5,184	19.4	%
646	528	(22.3)	%	Provision for income taxes	1,343	1,124	(19.5)	%
(3)	(30)			Equity investments and securities (income)/loss, net	(46)	24
2,298	2,049	12.2	%	Net Earnings	4,893	4,036	21.2	%
126	102			Net Earnings attributable to noncontrolling interests	303	263
$ 2,172	$ 1,947	11.6	%	Net Earnings attributable to PMI	$ 4,590	$ 3,773	21.7	%

				Per share data (3):
$ 1.39	$ 1.25	11.2	%	Basic Earnings Per Share	$ 2.94	$ 2.42	21.5	%
$ 1.39	$ 1.25	11.2	%	Diluted Earnings Per Share	$ 2.93	$ 2.42	21.1	%

(1) Six months ended and quarter ended June 30, 2021 includes a reduction in net revenues of $246 million related to the Saudi Arabia customs assessments
(2) Six months ended June 30, 2021 includes asset impairment and exit costs ($127 million). Quarter ended June 30, 2021 includes asset impairment and exit costs ($79 million). Six months ended and quarter ended June 30, 2020 includes asset impairment and exit costs ($71 million).
(3) Net Earnings and weighted-average shares used in the basic and diluted Earnings Per Share computations for the quarters and for the six months ended June 30, 2021 and 2020 are shown on Schedule 1, Footnote 1


				Schedule 10
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Condensed Balance Sheets
($ in millions, except ratios) / (Unaudited)

	June 30,			December 31,
	2021			2020
Assets
Cash and cash equivalents		$	4,915		$	7,280
All other current assets		13,828			14,212
Property, plant and equipment, net		5,975			6,365
Goodwill		5,842			5,964
Other intangible assets, net		1,958			2,019
Equity investments		4,633			4,798
Other assets		3,535			4,177
Total assets		$	40,686		$	44,815

Liabilities and Stockholders' (Deficit) Equity
Short-term borrowings		$	136		$	244
Current portion of long-term debt		1,608			3,124
All other current liabilities		14,140			16,247
Long-term debt		27,414			28,168
Deferred income taxes		505			684
Other long-term liabilities		6,083			6,979
Total liabilities		49,886			55,446

Total PMI stockholders' deficit		(11,113)			(12,567)
Noncontrolling interests		1,913			1,936
Total stockholders' (deficit) equity		(9,200)			(10,631)
Total liabilities and stockholders' (deficit) equity		$	40,686		$	44,815


											Schedule 11
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 June 30, 2021									Year Ended December 31, 2020
	July ~ December			January ~ June			12 months
	2020			2021			rolling
Net Earnings		$	4,556		$	4,893		$	9,449			$	8,592
Equity investments and securities (income)/loss, net		(40)			(46)			(86)				(16)
Provision for income taxes		1,253			1,343			2,596				2,377
Interest expense, net		327			328			655				618
Depreciation and amortization		511			484			995				981
Asset impairment and exit costs and Others (1)		(41)			373			332				30
Adjusted EBITDA		$	6,566		$	7,375		$	13,941			$	12,582

							June 30,			December 31,
							2021			2020
Short-term borrowings								$	136			$	244
Current portion of long-term debt								1,608				3,124
Long-term debt								27,414				28,168
Total Debt								$	29,158			$	31,536
Cash and cash equivalents								4,915				7,280
Net Debt								$	24,243			$	24,256

Ratios:
Total Debt to Adjusted EBITDA								2.09				2.51
Net Debt to Adjusted EBITDA								1.74				1.93

(1) For the period January 2021 to June 2021 "Others" includes a reduction in net revenues of $246 million related to the Saudi Arabia customs assessments that was recorded in the second quarter of 2021. For the period July 2020 to December 2020 and for the year ended December 31, 2020, "Others" include the Brazil indirect tax credit $119 million that was recorded in the fourth quarter of 2020.


							Schedule 12
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 June 30,					Six Months Ended June 30,
2021	2020	% Change			2021	2020	% Change
$ 3,630	$ 1,925	88.6	%	Net cash provided by operating activities (1)	$ 4,065	$ 3,036	33.9	%
442				Less: Currency	619
$ 3,188	$ 1,925	65.6	%	Net cash provided by operating activities, excluding currency	$ 3,446	$ 3,036	13.5	%

(1) Operating cash flow

Exhibit 99.2

Philip Morris International Inc.

2021 Second-Quarter Conference Call

July 20, 2021

NICK ROLLI

(SLIDE 1.)

Welcome. Thank you for joining us. Earlier today, we issued a press release containing detailed information on our 2021 second-quarter results. You may access the release on www.pmi.com.

(SLIDE 2.)

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

Growth rates presented on an organic basis reflect currency-neutral underlying results. Adjusted net revenues exclude the impact of the Saudi Arabia customs assessments as described in today's press release.

Please note that due to U.K. Takeover Code requirements, we do not intend to provide further information on this call regarding our offer to acquire Vectura Group plc that has not already been disclosed in the Rule 2.7 announcement on July 9, 2021. A copy of the Rule 2.7 offer announcement is available on www.pmi.com.

(SLIDE 3.)

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

(SLIDE 4.)

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

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

EMMANUEL BABEAU

(SLIDE 5.)

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

Our business delivered a very strong performance in the second quarter of 2021 — coming slightly ahead of our expectations to match Q1's record high quarterly adjusted diluted EPS of $1.57, despite the continued challenges of the global pandemic.

Most impressive was the continued strong growth of IQOS, which made up 13% of our volumes and nearly 30% of our adjusted net revenues, compared to 24% in the prior year quarter. HTU shipment volumes grew +30% and +12% compared to the same quarter last year and the previous quarter sequentially to reach 24.4 billion units, with strong growth across key geographies. We also continued converting adult smokers at a good pace surpassing an estimated 20 million users, of which almost 15 million have switched to IQOS and stopped smoking.

Combustible net revenues grew by +4% in Q2 on an organic basis, reflecting a partial volume rebound against a weak prior year quarter and solid pricing, partly offset by market mix.

Our adjusted operating income margins expanded significantly in both the second quarter and first half overall, and while we expect commercial investments to step up in the second half, this puts us firmly on track for a strong 2021 performance organically; with an expected currency tailwind providing additional growth in dollar terms. Importantly, this outlook also allowed us last month to confirm our share buyback program where we target $5 billion to $7 billion over 3 years.

We are also delighted to announce that IQOS ILUMA, the next generation of IQOS, will be launched in Japan next month. As we covered at Investor Day in February, this represents a major step in category innovation as we seek to accelerate our journey toward a smoke-free future.

With regard to long-term growth, we also took important steps to build our modern oral and beyond nicotine businesses in recent weeks through the proposed acquisitions of Fertin Pharma and Vectura, which I'll come back to later.

(SLIDE 6.)

Turning to the headline numbers, our Q2 adjusted net revenues grew by +11.6% on an organic basis, or around +18% in dollar terms. This reflects both the recovery of the combustible business in many markets compared to the heavily disrupted second quarter of 2020, including the need for higher inventory levels; and the continued strength of IQOS, with +35% organic growth in RRP net revenues. For combustibles, while certain geographies and

channels remain significantly affected by the pandemic -- notably in South and Southeast Asia, South America, and global Duty Free — re-openings in much of the world have led to partial recovery in social occasions, and a sequential recovery in our market share.

We witnessed good organic growth of +5.1% in our net revenue per unit, driven by the increasing weight of IQOS in our sales mix and pricing on both combustibles and RRPs.

Our adjusted operating income margin increased by 270 basis points on an organic basis. This reflects the increasing weight and profitability of IQOS, higher combustible volumes, the positive impact of pricing, productivity savings, including lower device costs and lower commercial spend due to the pandemic. Our resulting adjusted diluted EPS of $1.57 represents +17.8% organic growth, and +21.7% in dollar terms; a very strong performance.

(SLIDE 7.)

Looking at the first half overall, our adjusted net revenues grew by almost +12% in dollar terms and by +7.1% organically. This was achieved despite a tougher Q1 comparison, and reflects the Q2 factors I just mentioned and the consistent growth of IQOS - where progress throughout the pandemic has been impressive, notably including the doubling of users in the EU Region since the end of 2019.

We delivered strong organic growth of nearly +6% in our net revenue per unit, again reflecting our shifting business mix and pricing.

Our H1 adjusted operating income margin increased by 440 basis points on an organic basis. While we plan to increase commercial investments in the second half, as we noted at Q1, this remains an excellent performance. Our H1 adjusted diluted EPS grew +19.6% organically and +25.6% in dollar terms; also a very strong result.

(SLIDE 8.)

This brings me to guidance for 2021. We now expect an even stronger organic performance for the year than previously, supported by improved total industry volumes for combustibles following the easing of pandemic restrictions.

For net revenues, we are revising our organic growth forecast to between +6% and +7%, representing the upper end of the previous range.

We continue to expect organic adjusted OI margin expansion of around +200 basis points, and we are raising our organic adjusted diluted EPS growth range to +12% to +14%, or +15% to +17% in dollar terms. We also continue to expect HTU shipment volumes of between 95 and 100 billion units. Given the strong momentum across our markets, the need to maintain inventory durations; and preparation for the roll-out of IQOS ILUMA which uses different

consumables, we expect our full year HTU shipments to be slightly ahead of IMS volumes.

This projected organic EPS growth, including an estimated favorable currency impact of approximately 18 cents at prevailing rates, translates into an increased adjusted diluted EPS range of $5.97 to $6.07.

This guidance does not include any material impact of share repurchases or acquisitions. We recently received Board authorization for the launch of our 3 year share repurchase program, where we target $5 to $7 billion starting in the period following our Q2 earnings release. Please note this program is not affected by the proposed acquisitions of Fertin Pharma or Vectura.

(SLIDE 9.)

Turning now to some of the key H2 assumptions underpinning this guidance. We assume that many of our key markets will have largely emerged from COVID restrictions, supporting better industry volumes. Where significant pandemic-related challenges remain — notably Indonesia, the Philippines and certain markets in South America — we assume no significant further deterioration from the present situation.

We continue to assume no meaningful recovery in Duty Free this year, with intercontinental and Asian travel still subdued. A rebound in travel within customs areas such as the European Union has limited effect.

In addition, following combustible pricing of around +3% in the first half, we anticipate a somewhat softer second half progression. We continue to expect the full year variance to be +2-3%. This reflects continued pandemic-related challenges in certain markets, notably in South & Southeast Asia. H2 also faces tough pricing comparisons from the 2020 VAT reduction in Germany and new excise tax terms in Australia.

The global semi-conductor shortage continues to put constraints on device supplies, and while the overall impact remains manageable we have adjusted our device assortments to limit the effect on consumer availability. This dynamic is included in our guidance, and we continue to monitor the situation closely.

Despite these factors, we have multiple growth drivers in our business and we are confident in our ability to deliver continued robust top-line progress.

This revenue assumption includes higher expected device shipments and the launch of IQOS ILUMA, which will contribute to less gross margin expansion compared to the first half. As mentioned previously, we will also step-up our commercial investments in key areas including portfolio expansion and product launches such as IQOS ILUMA and IQOS VEEV, smoke-free category understanding and awareness campaigns and a number of commercial development projects. We anticipate around $300 to $400 million of incremental spending compared to the first half which will impact our H2 OI

margin, but overall still expect to deliver a very robust expansion of around +200 basis points for the year.

For Q3 specifically, we expect EPS of $1.50 to $1.55.

Lastly, we continue to expect around $11 billion in 2021 operating cash flow at prevailing exchange rates and subject to year-end working capital requirements.

(SLIDE 10.)

Before discussing our results in more depth, I want to highlight some of the positive regulatory developments in the quarter. Recognition of the harm reduction potential of smoke-free products continues to gain traction. Examples in recent weeks include the passing of a broad differentiated regulatory framework for RRPs by the Philippines House of Representatives, and the institution of differentiated excise treatment for heated tobacco products in Pakistan. In Mexico, the ban on the import and export of Electronic Nicotine Delivery Systems no longer applies to heated tobacco devices, which will allow us to resume imports of IQOS devices.

While we are encouraged that the German government has recognized the important principle of differentiation between combustible cigarettes and smoke-free products on the basis of potential health impact, we view the announced excise tax changes on heated tobacco as misguided, providing less incentive for consumers to switch away from cigarettes to less harmful alternatives. We also note the differing views among the key political groups in the country ahead of the fall elections, and we are hopeful a new government could revisit the decision.

In the EU more generally, we remain optimistic that the revision of the Tobacco Excise Directive will lead to greater harmonization in the structural approach to non-combustible products, taking into account the relevant good practices and experience gained by Member States.

(SLIDE 11.)

Turning back to our quarterly results, Q2 total shipment volumes increased by +6.1%, and by +1.1% for H1. This reflects continued strong growth from HTUs of +30% to reach 24.4 billion units in Q2 -- driven by the EU Region, Japan, Russia, Ukraine and encouraging progress from recently launched markets in the Middle East. HTU shipments were around 1.4 billion units ahead of IMS volumes for the second quarter, reflecting the need to maintain inventory durations in this growing business, sea freight lead times, and the first shipments of ILUMA consumables.

The +3.2% growth in our Q2 cigarette volumes reflects the recovery of a number of key markets compared to a notably weak prior year quarter, when pandemic-related disruption was at its peak. While our cigarette share improved sequentially, we continue to face some specific market share headwinds in addition to market mix effects, which I will come back to.

(SLIDE 12.)

Due to the impressive performance of IQOS, heated tobacco units comprised 13.3% of our total shipment volume in H1, as compared to 11% in the year of 2020, 8% in 2019 and 5% in 2018. We expect this proportion to grow over time as the positive momentum on IQOS continues, providing a powerful driver of revenue and margin growth.

(SLIDE 13.)

Our sales mix is changing rapidly, putting us on track to achieve our aim of becoming a majority smoke-free company by 2025. Smoke-free products made up nearly 30% of our adjusted net revenues in the quarter and in H1, compared to 23% in H1, 2020. IQOS devices accounted for approximately 5% of the $4.4 billion of RRP net revenues, reflecting longer replacement times and fewer second device purchases for existing users due to improving battery lives, functionality and reliability; and lower device prices in certain markets as we prepare for IQOS ILUMA.

(SLIDE 14.)

The +7.1% organic growth in H1 net revenues on shipment volume growth of +1.1% reflects the twin engines driving our top line. First, is pricing on combustibles and, in certain markets, on HTUs net of the lower device pricing I just mentioned. Second, the increasing mix of HTUs in our business at higher net revenue per unit continues to deliver substantial growth; and, as explained at Investor Day, this is an increasingly powerful driver as our transformation accelerates.

(SLIDE 15.)

Let me now go into the drivers of our first half margin expansion, starting with gross margin, which expanded by +340 basis points on an organic basis. This is driven by multiple levers as explained in prior quarters, including the mix effect of HTUs and pricing across our portfolio. Our significant efforts on manufacturing and supply chain efficiencies are bearing fruit, more than offsetting the effect of combustible volume declines; with around $300 million of gross productivity savings delivered in H1. This represents a strong start on the journey towards our target of $1 billion over 2021-23.

This was accompanied by strong SG&A efficiencies, with our adjusted H1 marketing, administration and research costs 90 basis points lower as a percentage of adjusted net revenues, on an organic basis. This reflects the ongoing digitalization and simplification of our business processes, including our IQOS commercial engine, and more efficient ways of working. We delivered around $120 million towards our 2021-23 target of $1 billion in gross SG&A savings, before inflation and reinvestment.

(SLIDE 16.)

Focusing now on combustibles, we hold the leading international portfolio by market share and by brand strength. This gives us a formidable platform to accelerate the growth of IQOS via our commercial infrastructure, industry expertise and ability to communicate with adult smokers, where permitted. It is therefore important to maintain our leadership through selective investment as we also drive returns through pricing and efficiencies.

Despite good results in markets like Mexico, Saudi Arabia and Turkey, our Q2 cigarette share remained below the prior year, with over half of this share loss due to market mix — reflecting our high exposure to markets like the Philippines and low presence in certain emerging markets with a strong rebound, such as Bangladesh. Importantly, our share improved sequentially compared to the first quarter and we expect this positive trajectory to continue through the second half. This reflects a partial recovery from the COVID impact on social occasions, where Marlboro overindexes, border closures and travel.

However, the expected recovery is also supported by portfolio initiatives, including in the value segment, and the enduring strength of Marlboro. We continue to target stabilization in our cigarette category share over time, with HTU gains coming on top.

(SLIDE 17.)

I will now turn briefly to the South and Southeast Asia Region. As covered last quarter, after a difficult 2020, notably in Indonesia, volume headwinds have been moderating. However, the pandemic remains a major issue in the region, with renewed lockdowns in a number of areas. Daily consumption patterns are still below pre-pandemic levels and the pricing environment remains challenging.

We continue to expect volume growth in Indonesia this year as the industry improves, with encouraging recent share gains within the tier-one segment, where we participate. Our overall share in both Indonesia and the Philippines was sequentially broadly stable in Q2, with our portfolio initiatives geared at further share recovery over the balance of the year. In RRPs, IQOS continues to grow strongly in Metro Manila, with an exit share of over 1% for HEETS.

For the region overall we remain on track to deliver positive organic net revenue growth over the April to December period, as outlined on our Q1 call.

(SLIDE 18.)

Moving now to IQOS performance, we estimate there were 20.1 million IQOS users as of June 30. After the exceptional addition of around +1.5 million adult users in the first quarter, we added a further +1 million in Q2 and +2.5 million year-to-date, building on the step-up seen in the second half of 2020. Our accelerated pivot to digital and remote engagement during the pandemic, combined with strong momentum for the IQOS brand, is paying off.

We further estimate that 73% of this total -- or 14.7 million adult smokers -- have switched to IQOS and stopped smoking, with the balance in various stages of conversion. Strong conversion rates notably reflect the increased prevalence of IQOS 3 DUO which offers a superior user experience to previous device versions. We seek to achieve even higher conversion rates over time with the introduction of innovations such as IQOS ILUMA.

This user growth again reflects widespread momentum across all key IQOS geographies, including the EU Region, Japan and Russia. It also reflects the enrichment of our offer and the segmentation of the category with new products and more price points, both above and below our initial HTU offering.

(SLIDE 19.)

In the EU Region, second-quarter share for HEETS reached 5.5% of total cigarette and HTU industry volume, +1.6 points higher than Q2 last year. As mentioned last quarter, we expected sequential share for HTUs to be broadly in line with the first quarter due to the effects of seasonality and pandemic-related fluctuations on the combustible market. Underlying trends remained strong, with Q2 HTU IMS volumes growing +50% year-over-year and around +11% sequentially when adjusted for estimated trade inventory movements. We expect to see similar dynamics in the third quarter, with broadly stable headline share versus robust underlying growth.

This excellent performance includes strong growth across the region, with Italy and Poland as notable contributors. We continued to grow our EU Region IQOS user base, doubling since the start of 2020 despite the pandemic to reach over 6.3 million.

(SLIDE 20.)

Strong performance continued in Russia, with 8% sequential user growth in Q2 and our HTU share up by 1.3 points to reach 7.3%. As in the EU, sequential share can be distorted by the combustible market; adjusted for estimated trade inventory movements, this reflects close to +30% year-over-year IMS growth.

After the excellent progress and geographic expansion of IQOS in recent years, the heated tobacco category in Russia is now large and growing. This very positive dynamic naturally attracts competition, and as seen before in markets like Japan, heavily discounted competitive offerings can generate initial consumer trial. We continue to grow our user base, and with both our existing price-tiered portfolio and the future launch of IQOS ILUMA we see ample room for further strong growth.

While we have historically focused on Russia in our earnings calls, there is broad HTU growth across the Eastern Europe Region, with Ukraine, Kazakhstan and South-East Europe significantly contributing. We show here the excellent overall regional growth trend in adjusted IMS. Note that following

recent international sanctions, IQOS is no longer available for sale in Belarus, where we achieved a Q2 offtake share in Minsk of almost 7%.

We continue to see sequential volume growth for both our HEETS and Fiit line-ups in Russia and Ukraine. Moreover, LIL SOLID and Fiit consumables continue to supplement user acquisition. In both Russia and Ukraine, the majority of consumers purchasing a LIL device are smokers entering the smoke-free category for the first time, with high levels of conversion in line with IQOS, benefiting from our IQOS conversion infrastructure. With this success, we also introduced LIL SOLID in 5 further markets in Eastern Europe this quarter, with additional markets planned later this year.

(SLIDE 21.)

In Japan, the adjusted total tobacco share for our HTU brands increased by +2.3 points versus the prior year quarter, and by 0.2 points sequentially, to 21.0%, highlighting the strength of our price-tiered portfolio and broad range of SKUs following the October 2020 price increase. IMS volumes, adjusted for estimated trade inventory movements, grew by around +5% sequentially after accounting for fewer selling days in the first quarter.

We continue to expect robust underlying progress in user growth and consumer offtake, supported by the launch of IQOS ILUMA in August. As in prior years, with an additional excise increase in October 2021, there may be volatility on the timing of IMS and consumer offtake between the third and fourth quarters.

In H1, the overall heated tobacco category made up around 29% of the adjusted total Japanese tobacco market, with IQOS maintaining a high share of segment and capturing the large majority of the category's growth.

(SLIDE 22.)

In addition to strong growth in existing markets, the geographic expansion of our smoke-free products continues. This allows us to provide access to better alternatives to an ever increasing amount of adult smokers, as we aim to be in 100 markets by 2025. Our second quarter launches in Kyrgyzstan and Uzbekistan, with both IQOS and Lil offerings, takes the total number of markets where PMI smoke-free products are available for sale to 67, of which over half are outside the OECD.

(SLIDE 23.)

A core driver of our continued success in smoke-free products is innovation. We are very excited to launch IQOS ILUMA, the next generation of IQOS, next month in Japan. Building on the success of IQOS 3 DUO, we believe this simple and intuitive device will support easier switching and higher conversion for legal-age smokers, using Smartcore internal induction-heating technology. As outlined at Investor Day, ILUMA will come in multiple device formats and have its own range of HTU consumables.

The ongoing success of IQOS 3 DUO almost 2 years after launch demonstrates that significant innovations can have a lasting positive impact on growth. We plan for further market launches of IQOS ILUMA through the remainder of this year and in 2022.

Naturally for a major new innovation, and as seen with earlier versions of IQOS, the unit cost profile of IQOS ILUMA devices and consumables begins at a higher level, but we expect this to improve over time as scale increases; this dynamic is included in our guidance assumptions.

(SLIDE 24.)

We are continuing to commercialize IQOS VEEV with good progress in the first group of markets, where we started in our own channels with an initially limited range of taste variants and nicotine levels. IQOS VEEV is a premium product providing a superior experience, and as we explained previously, the commercial infrastructure of IQOS allows us to deploy efficiently and at scale through a bespoke route-to-market approach. As we start to expand distribution and the consumable offering we see signs of increased uptake, and clear positive consumer feedback relative to competitive products. We plan to launch in further markets later this year, and will continue to test age-verification technology in select markets.

(SLIDE 25.)

In addition to heated tobacco and e-vapor, we announced in February our intention to enter the small but fast-growing nicotine pouch category this year. To complement our internal development, we have two important acquisitions to establish a base of capability in science, technology and manufacturing - and build our platform in modern oral.

The first of these was AG Snus, completed during the second quarter. AG Snus has a relatively small, branded portfolio of modern oral products which provide us a foothold in the category. In addition, the proposed acquisition of Fertin Pharma will give us access to a range of promising oral delivery technologies and capabilities, some of which could be applied to the modern oral nicotine space.

We will return with further news on our commercial plans in this area later this year.

(SLIDE 26.)

I also want to come back to our Beyond Nicotine strategy which we first outlined at Investor Day. We see significant opportunities in adjacent areas, with our two focus corridors of selfcare wellness -- including botanicals -- and inhaled therapeutics expected to have an addressable market of around $65 billion by 2025.

The proposed acquisitions of Fertin Pharma and Vectura can enable us to more rapidly expand our development capabilities in innovative inhaled and

oral product formulations, while continuing to grow their respective CDMO activities.

Fertin has a range of promising oral delivery technologies, including pouches, gum and lozenges which can be applied in both the modern oral nicotine and beyond nicotine areas - notably for selfcare wellness products.

With Vectura, we would gain access to differentiated proprietary technology and pharmaceutical development expertise to deliver a broad range of complex inhaled therapies. Vectura has highly complementary human capital, technology, high quality infrastructure, and deep know-how of inhalable formulation and device design development and analysis, drug/device combination, and pharmaceutical management processes and systems.

These proposed acquisitions would fully leverage PMI’s existing capabilities in life sciences, product innovation, and clinical expertise related to inhalation.

Such acquisitions can also enhance our progress on important sustainability priorities. Firstly, building our capabilities in modern oral is a key enabler of broadening the reach and access of our smoke-free alternatives to adult smokers around the world. And secondly, building a strong Beyond Nicotine business is a major objective as we strive to develop commercially successful products with a net positive impact on society.

(SLIDE 27.)

On ESG and sustainability more broadly, we are firm believers in the power of investor engagement to drive positive change. Given PMI's unique sustainability and transformation story we have increased our own outreach. We published our second Integrated Report in May, which provides a comprehensive, detailed and transparent disclosure of how we create sustainable value and how we are progressing toward our purpose and targets - including our most important commitment of all - to phase out cigarettes.

We also held a dedicated Sustainability webcast on June 2, where we covered the fundamental alignment of our transformation and financial performance with addressing our impact on society. We shared the latest studies using real-world data on a possible association between accelerated cigarette volume declines and certain disease reductions in Japan. We also reaffirmed our commitment to diversity, equity and inclusion as an essential enabler of future success.

We continue to make progress on our 2025 roadmap, with notable developments in Q2 being our second certified carbon-neutral factory in Switzerland, taking us one step closer to achieving carbon neutrality by 2025, and the publication of our eco-design principles as we seek to play our part in the circular economy.

(SLIDE 28.)

In closing, after delivering 1% total volume growth and 7% organic revenue growth in H1, we have raised our 2021 organic growth expectations to +6-7% in net revenues and +12-14% in adjusted diluted EPS. We are on track for an excellent performance.

Moreover, we continue to invest in the future. Most immediately this means the launch of IQOS ILUMA in Japan next month, and in more markets later this year. We are also investing in the broadening of our smoke-free product portfolio and geographic reach. This is critical as we seek to accelerate the number of adult smokers who switch to better alternatives, with a growing positive impact on society.

In addition, we are investing in the capabilities of tomorrow, as illustrated by our two recent proposed acquisitions, which provide a comprehensive development platform across our beyond nicotine focus areas.

Finally, we are also committed to returning cash to shareholders through dividends and share repurchases - in line with our objective to deliver sustainable value and returns to investors as we continue our journey toward becoming a majority smoke-free business.

(SLIDE 29.)

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

(SLIDE 30.)

Thank you again for joining us. Let me leave you with some key messages. First, despite the slower recovery from the pandemic in certain markets, we are happy to report a very robust first half performance with a record high adjusted diluted EPS and raised 2021 guidance. Second, the impressive growth of IQOS continues, and we remain on track to deliver our target of 95-100 billion units for the year. Third, our combustible business is improving sequentially as the recovery from the pandemic gains traction in many key markets. Lastly, we are building towards important milestones in our beyond nicotine strategic vision as part of our business transformation.

NICK ROLLI

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

Delivering a Smoke-Free Future 2021 Second-Quarter Results July 20, 2021 Introduction • A glossary of key terms and definitions, including the definition for reduced-risk products, or "RRPs," additional heated tobacco unit market data, as well as adjustments, other calculations and reconciliations to the most directly comparable U.S. GAAP measures are at the end of today’s webcast slides, which are posted on our website • Unless otherwise stated, all references to IQOS are to our IQOS heat-not-burn products. All references to smoke-free products refer to RRPs • Growth rates presented on an organic basis reflect currency-neutral underlying results. Adjusted net revenues exclude the impact of the Saudi customs assessments as described in today's press release • Due to U.K. Takeover Code requirements, we do not intend to provide further information on this call regarding our offer to acquire Vectura Group plc that has not already been disclosed in the Rule 2.7 announcement on July 9, 2021. A copy of the Rule 2.7 offer announcement is available on www.pmi.com 2 Exhibit 99.3

Forward-Looking and Cautionary Statements • This presentation and related discussion contains projections of future results and other forward-looking statements. Achievement of future results is subject to risks, uncertainties and inaccurate assumptions. In the event that risks or uncertainties materialize, or underlying assumptions prove inaccurate, actual results could vary materially from those contained in such forward-looking statements. Pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, PMI is identifying important factors that, individually or in the aggregate, could cause actual results and outcomes to differ materially from those contained in any forward-looking statements made by PMI • PMI's business risks include: excise tax increases and discriminatory tax structures; increasing marketing and regulatory restrictions that could reduce our competitiveness, eliminate our ability to communicate with adult consumers, or ban certain of our products; health concerns relating to the use of tobacco and other nicotine containing products and exposure to environmental tobacco smoke; litigation related to tobacco use and intellectual property; intense competition; the effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; changes in adult smoker behavior; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations, and limitations on the ability to repatriate funds; adverse changes in applicable corporate tax laws; adverse changes in the cost, availability, and quality of tobacco and other agricultural products and raw materials, as well as components and materials for our electronic devices; and the integrity of its information systems and effectiveness of its data privacy policies. PMI's future profitability may also be adversely affected should it be unsuccessful in its attempts to 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 • In addition, PMI’s business risks also include risks and uncertainties related to PMI’s potential acquisitions of Fertin Pharma A/S (“Fertin”) and Vectura Group plc (“Vectura”), including, amongst other things: (1) the inability to consummate these acquisitions in a timely manner; (2) the inability to complete these acquisitions due to the failure to satisfy certain conditions to complete the acquisitions, including any required regulatory or stockholder approvals, as applicable; (3) the failure of these acquisitions to close for any other reason; (4) the possibility that the integration of the operations of Fertin and Vectura with those of PMI may be more difficult and/or take longer than anticipated, and may not accelerate PMI’s desired entry into additional smoke-free and beyond nicotine platforms as quickly as anticipated; (5) the possibility that the respective integrations of Fertin and Vectura into PMI may be more costly than anticipated and may have unanticipated adverse results relating to Fertin, Vectura or PMI’s existing businesses; (6) the inability to gain access to differentiated proprietary technology and pharmaceutical development expertise as anticipated by these acquisitions; (7) risks associated with third-party contracts containing consent and/or other provisions that may be triggered by the proposed acquisitions; (8) negative effects of the announcement or the consummation of the acquisitions on the market price of PMI’s common stock; and (9) the ability of PMI to retain and hire key personnel of Fertin and Vectura • 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 March 31, 2021. 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 we may make from time to time, except in the normal course of its public disclosure obligations 3 Forward-Looking and Cautionary Statements (COVID-19) • The COVID-19 pandemic has created significant societal and economic disruption, and resulted in closures of stores, factories and offices, and restrictions on manufacturing, distribution and travel, all of which will adversely impact our business, results of operations, cash flows and financial position during the continuation of the pandemic. Our business continuity plans and other safeguards may not be effective to mitigate the impact of the pandemic • Currently, significant risks include our diminished ability to convert adult smokers to our RRPs, significant volume declines in our duty-free business and certain other key markets, disruptions or delays in our manufacturing and supply chain, increased currency volatility, and delays in certain cost saving, transformation and restructuring initiatives. Our business could also be adversely impacted if key personnel or a significant number of employees or business partners become unavailable due to the COVID-19 outbreak. The significant adverse impact of COVID-19 on the economic or political conditions in markets in which we operate could result in changes to the preferences of our adult consumers and lower demand for our products, particularly for our mid-price or premium-price brands. Continuation of the pandemic could disrupt our access to the credit markets or increase our borrowing costs. Governments may temporarily be unable to focus on the development of science-based regulatory frameworks for the development and commercialization of RRPs or on the enforcement or implementation of regulations that are significant to our business. In addition, messaging about the potential negative impacts of the use of our products on COVID-19 risks may lead to increasingly restrictive regulatory measures on the sale and use of our products, negatively impact demand for our products, the willingness of adult consumers to switch to our RRPs and our efforts to advocate for the development of science-based regulatory frameworks for the development and commercialization of RRPs • The impact of these risks also depends on factors beyond our knowledge or control, including the duration and severity of the pandemic, its recurrence in our key markets, actions taken to contain its spread and to mitigate its public health effects, and the ultimate economic consequences thereof 4

Strong Q2 and H1 Performance 5 • Excellent Q2, 2021 growth from IQOS:⎼ RRPs nearly 30% of PMI adjusted net revenues⎼ Broad-based 30% HTU shipment volume growth to 24.4bn⎼ Continued adult smoker acquisition to surpass 20m users • Organic growth of combustible net revenues versus weak prior year quarter • Strong margin expansion in Q2 and H1 • On track for strong full year performance, share buyback confirmed • IQOS ILUMA launch next month in Japan • Investing in Modern Oral and Beyond Nicotine capabilities (Fertin & Vectura) Source: PMI Financials or estimates (a) Reflects total adjusted PMI net revenues divided by total PMI cigarette and HTU shipment volume Source: PMI Financials or estimates 6 Q2, 2021: Excellent Organic Growth (Organic variance on adjusted metrics vs. PY) Net Revenues Diluted EPS OI Margin Net Revenue per Unit(a) +17.8% +270bps +5.1% +11.6%

(a) Reflects total adjusted PMI net revenues divided by total PMI cigarette and HTU shipment volume Source: PMI Financials or estimates 7 H1, 2021: Excellent Organic Growth (Organic variance on adjusted metrics vs. PY) Net Revenues Diluted EPS OI Margin Net Revenue per Unit(a) +19.6% +440bps +5.9% +7.1% (a) On an organic basis Source: PMI Financials or estimates Raising Full-Year Organic Outlook • Revising organic growth assumption for net revenues to upper-end of previous range • Increasing adjusted diluted EPS forecast to $5.97- $6.07:⎼ Includes favorable currency impact of ~18 cents at prevailing exchange rates • Share repurchase program authorized:⎼ Targeting $5 to $7 billion over 3 years⎼ EPS guidance does not include any material impact from share repurchases or acquisitions 8 FY21 Outlook(a) Adj. Net Revenue Growth 6-7% Adjusted OI Margin Expansion ~200bps Adjusted Diluted EPS Growth 12-14% HTU Shipment Volume 95-100billion

Key Assumptions for H2, 2021 • Many key markets largely emerged from COVID restrictions supporting improved industry volumes:⎼ No significant further deterioration in Indonesia, the Philippines and certain South American markets • Limited impact from global semi-conductor shortage on device availability • Continued robust organic top-line growth:⎼ Despite subdued Duty Free business, South & Southeast Asia pandemic situation, somewhat softer combustible pricing • Step-up of $300-400m vs. H1 in commercial investments, skewed to Q3:⎼ Portfolio expansion and new product launches, such as IQOS ILUMA and IQOS VEEV⎼ Smoke-free category understanding and awareness campaigns⎼ Commercial development projects • Expect Q3, 2021 EPS of $1.50 to $1.55 9Source: PMI Financials or estimates Recent Positive Regulatory Developments Recognizing Harm Reduction Potential of RRPs • Philippines: House of Representatives passed House Bill 9007 - “The Non-Combustible Nicotine Delivery Systems Regulation Act.” The Bill provides a broad differentiated regulatory framework for RRPs, including rules on public place use, product labeling, consumer communications and government jurisdiction • Pakistan: Government instituted a fully specific, differentiated excise duty rate for HTPs(a) • Mexico: Ban on the import and export of Electronic Nicotine Delivery Systems no longer applies to tobacco heating devices 10 We continue to support regulatory and fiscal frameworks which recognize the substantial risk reduction potential of non-combusted alternatives compared with combusted tobacco (a) PMI HTUs are not currently available for sale in Pakistan

Source: PMI Financials or estimates 11 Strong Volume Growth of HTUs, Improved Combustibles Total PMI Shipment Volume (billion units) 151.4 156.1 18.7 24.4 170.1 180.5 Q2, 2020 Q2, 2021 HTUs Cigarettes Total 30.2% 3.2% 6.1% Change vs. PY 308.4 301.7 35.4 46.1 343.8 347.7 H1, 2020 H1, 2021 HTUs Cigarettes Total 30.1% (2.2)% 1.1% Change vs. PY H1Q2 HTUs Over 13% of Total Volume (as a % of PMI Total Shipment Volume) 12 Note: Total volume includes HTUs and cigarettes Source: PMI Financials or estimates 0.0% 0.9% 4.5% 5.3% 7.8% 10.8% 13.3% 2015 2016 2017 2018 2019 2020 H1, 2021 PMI HTU Shipment Volume (billion units) 7.4 59.741.436.20.4 76.1 46.1

H1, 2020 H1, 2021 Source: PMI Financials or estimates 13 Approaching 30% of Revenues from Smoke-Free Products (Smoke-Free Products as a % of Total PMI Adjusted Net Revenues) 0.2% 2.7% 12.7% 13.8% 18.7% 23.8% 2015 2016 2017 2018 2019 2020 $0.7 $4.1$3.6$0.1 $5.6 RRP Net Revenues ($ in billions) $6.8 $4.4 22.9% 28.5% $3.2 2023 2025 ~40% >50% AmbitionTarget 29.0% Q2, 2021 14Source: PMI Financials or estimates Twin Engines Powering Organic Net Revenue Growth +2.6pp +2.8pp +4.6pp H1'2021 Shipment Volume Increase Organic Net Revenue Growth H1'2021 Adjusted Net Revenue Growth +11.7% Category & Market Mix / OtherHTU and Device Pricing Combustible Pricing +7.1% +0.6pp Currency +1.1%

15 Note: Sum of the drivers does not foot due to rounding Source: PMI Financials or estimates Multiple Levers Driving OI Margin Expansion +3.4pp H1'2020 H1'2021 (excluding currency) H1'2021 SG&A Efficiencies Gross Margin Expansion +44.9% Currency +40.5% +45.0% Adjusted OI Margin +0.9pp +0.2pp (a) Excluding China and the U.S. Reflects sales volume of PMI cigarettes as a percentage of cigarette industry sales volume Source: PMI Financials or estimates Recovering Combustible Performance & Market Share • Cigarette Q2 share remains below prior year:⎼ Over half of decline due to market mix • Q2 volumes and sequential share recovering:⎼ Partial recovery from COVID impacts: social occasions, border closures⎼ Certain markets & channels still impacted • Further sequential cigarette share recovery expected in H2:⎼ Marlboro strength⎼ Portfolio initiatives 16 24.2% 24.9% Q1, 2021 Q2, 2021 Cigarette Market Share(a)

South & Southeast Asia • Volume headwinds moderating, pandemic remains major issue:⎼Daily consumption still below pre-pandemic levels; pricing environment still challenging • Indonesia sequential industry improvement; expect volume growth for 2021 underpinned by share gains in tier-one segment • Overall share sequentially broadly stable in Indonesia and the Philippines; portfolio initiatives geared to further share recovery • IQOS at over 1% Q2 share in Metro Manila • On track to deliver positive regional organic net revenues for April to December as outlined during Q1 17Source: PMI Financials or estimate Total IQOS Users(a) 19.1 17.6 16.4 15.3 14.3 13.5 12.2 11.2 70% 71% 71% 73% 72% 71% 73% 74% Estimated users who have switched to IQOS and stopped smoking(a) Estimated users who are in various stages of conversion(a) 73% 20.1 2019 Q2 Q3 Q4 Q1 2020 Q2 Q3 Q4 Q1 Q2 2021 (a) See Glossary for definition Source: PMI Financials or estimates, IQOS user panels and PMI Market Research Key Milestone Reached: 20 Million IQOS Users 18

EU Region: Strong Underlying HEETS Growth 19 (a) Excluding the estimated impact of trade inventory movements Note: 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 Source: PMI Financials or estimates 2020 2021 Adj. IMS(a) (in billion units) 3.9% 3.9% 3.9% 5.0% 5.5% Q1 Q2 Q3 Q4 Q1 Q2 5.6% 4.1 4.5 5.2 5.7 6.0 6.8 HTU SoM (a) Excluding the estimated impact of trade inventory movements Note: 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 Source: PMI Financials or estimates Russia & Eastern Europe: Continued Strong PMI HTU Growth 20 Russia Adj. IMS(a) (in billion units) 2.9 3.2 3.4 3.8 3.9 4.0 EE Region Adj. IMS(a) (in billion units) 4.4 4.7 5.2 5.8 6.1 6.5 Russia HTU SoM 6.5% 6.0% 5.8% 7.2% 7.7% 7.3% Q1 Q2 Q3 Q4 Q1 Q2 2020 2021

Q1 Q2 Q3 Q4 Q1 Q2 18.7% 18.8% 20.1% 20.8% 21.0% 17.8% 2020 2021 (a) Adjusted market share for HTUs is defined as the total sales volume for HTUs as a percentage of the total estimated sales volume for cigarettes, HTUs and cigarillos and excluding the impact of estimated trade inventory movements (b) Excluding the impact of estimated trade inventory movements and including the cigarillo category Source: PMI Financials or estimates Japan: Continued IQOS HTU Growth 21 Adjusted Total Tobacco SoM(a) Adj. IMS(b) (in billion units) 6.7 7.1 7.6 7.6 7.4 7.9 (a) Status at June 30, 2021 Note: Reflects markets where PMI smoke-free products are available in key cities or nationwide. Includes e-vapor launch in Finland. Reflects date of initial geographic expansion beyond pilot launch city. The number of markets includes International Duty Free. Following recent international sanctions, IQOS is no longer available for sale in Belarus On Track to Reach 100 Markets by 2025 22 Market Launches 2019 (7) 2015 (7) 2016 (13) 2017 (18) 2018 (6) 2020 (12) Current: 67 Markets Worldwide(a) Of which: 35 Non-OECD 2021 (4) Target: 100 Markets in 5 years

Launching IQOS ILUMA in August • IQOS ILUMA launching in Japan next month • Multiple device formats, new HTU consumables • Further markets to come through H2, 2021 and next year:⎼ Next generation of IQOS⎼ Simple and intuitive device supports easier switching, higher conversion for legal-age smokers⎼ New internal heating technology based on SmartcoreTM induction • Cost of devices and consumables begins at higher level; expect to improve over time as scale increases 23 Positive Early Progress in IQOS VEEV Markets • Signs of increased uptake, and positive consumer feedback relative to competitive products • Premium product with superior experience to existing offers • Leveraging IQOS infrastructure with bespoke route-to-market approach • Targeting all of our electronic smoke-free devices to be equipped with age verification technology by 2023 • Expansion of consumable offering 24

Building Our Modern Oral Platform • Small but fast-growing smoke-free category for nicotine pouches • Recent acquisitions provide strong capabilities:⎼ AG Snus (completed): Branded products, technology & manufacturing expertise⎼ Fertin Pharma (proposed): Oral delivery know-how, development, technology • Increased commercial activity planned in coming quarters 25 Strategic Rationale For Fertin and Vectura Deals • Large addressable market for Beyond Nicotine focus areas of around $65bn by 2025 • Putting a comprehensive portfolio of development capabilities in place—covering innovative inhaled and oral product formulations • Adding 250+ scientists, technology, infrastructure • Accelerating progress on key sustainability priorities:⎼ Broadening the reach and access of our smoke-free alternatives to adult smokers around the world to accelerate the end of smoking⎼ Building a strong beyond nicotine business towards initial milestone goal of $1 billion in net revenues by 2025, with products that deliver net positive impact on society 26Source: PMI Estimates

• 2020 Integrated Report published May 18:⎼ Comprehensive disclosure of how we create sustainable value, progressing towards our purpose and targets • Sustainability webcast held June 2:⎼ Fundamental alignment of our transformation, financial performance and ESG priorities⎼ New real-world data on IHD admissions in Japan⎼ Expect to meet 2030 carbon-neutral target (Scope 1&2) by 2025 • Other notable Q2 developments:⎼ 2nd factory certified carbon-neutral⎼ Supporting taskforce on nature-related financial disclosures⎼ Eco-design principles published ESG: Transforming for a Sustainable Future Engaging with Investors & Other Stakeholders 27 28 Strong 2021 Outlook, Exciting Future • Raised organic guidance; on track for excellent top and bottom-line growth in 2021 • Launching IQOS ILUMA in Japan next month • Investing for future IQOS growth as pandemic recedes • Broadening smoke-free portfolio and geographic reach • Growing positive impact on society through switching adult smokers • Investing for long-term growth in Beyond Nicotine • Returning cash to shareholders

Delivering a Smoke-Free Future 2021 Second-Quarter Results Questions & Answers iOS Download Android DownloadHave you downloaded the new PMI Investor Relations App yet? 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 2021 Second-Quarter Results July 20, 2021

31 Glossary of Key Terms and Definitions, Appendix, and Reconciliation of Non-GAAP Measures Glossary: General Terms • "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 • 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") • 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 • 2020 and 2021 estimates for total industry volume and market share in certain geographies reflect limitations on the availability and accuracy of industry data during pandemic-related restrictions • "OTP" is defined as "other tobacco products," primarily roll-your-own and make-your-own cigarettes, pipe tobacco, cigars and cigarillos, and does not include reduced-risk products • "Combustible products" is the term PMI uses to refer to cigarettes and OTP, combined • In-market sales, or "IMS," is defined as sales to the retail channel, depending on the market and distribution model • "Total shipment volume" is defined as the combined total of cigarette shipment volume and heated tobacco unit shipment volume • "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 32

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. In July 2021, the Latin America & Canada operating segment was renamed as the Americas operating segment • Following the deconsolidation of PMI's Canadian subsidiary, Rothmans, Benson & Hedges, Inc. (RBH), PMI will continue to report the volume of brands sold by RBH for which other PMI subsidiaries are the trademark owner. These include HEETS, Next, Philip Morris and Rooftop • From time to time, PMI’s shipment volumes are subject to the impact of distributor inventory movements, and estimated total industry/market volumes are subject to the impact of inventory movements in various trade channels that include estimated trade inventory movements of PMI’s competitors arising from market-specific factors that significantly distort reported volume disclosures. Such factors may include changes to the manufacturing supply chain, shipment methods, consumer demand, timing of excise tax increases or other influences that may affect the timing of sales to customers. In such instances, in addition to reviewing PMI shipment volumes and certain estimated total industry/market volumes on a reported basis, management reviews these measures on an adjusted basis that excludes the impact of distributor and/or estimated trade inventory movements. Management also believes that disclosing PMI shipment volumes and estimated total industry/market volumes in such circumstances on a basis that excludes the impact of distributor and/or estimated trade inventory movements, such as on an IMS basis, improves the comparability of performance and trends for these measures over different reporting periods • "ESG" stands for environmental, social, and governance • "Illicit trade" refers to domestic non-tax paid products • "OECD" is defined as Organisation for Economic Co-operation and Development • "SoM" stands for share of market 33 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, heat-not-burn 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 net revenues exclude the impact related to the Saudi Arabia customs assessments • "SG&A" stands for selling, general & administrative • "Adjusted Operating Income (OI) Margin" is calculated as adjusted OI, divided by adjusted net revenues • "Net debt" is defined as total debt, less cash and cash equivalents • Growth rates presented on an organic basis for consolidated financial results reflect currency-neutral underlying results • Management reviews net revenues, OI, OI margins, operating cash flow and earnings per share, or "EPS," on an adjusted basis, which may exclude the impact of currency and other items such as acquisitions, asset impairment and exit costs, tax items and other special items. Organic growth rates reflect the way management views underlying performance for these measures. PMI believes that such measures, including pro forma measures, will provide useful insight into underlying business trends and results. • "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 34

Glossary: Reduced-Risk Products • "Reduced-risk products," or "RRPs," is the term PMI uses to refer to products that present, are likely to present, or have the potential to present less risk of harm to smokers who switch to these products versus continuing smoking. PMI has a range of RRPs in various stages of development, scientific assessment and commercialization. PMI RRPs are smoke-free products that produce an aerosol that contains far lower quantities of harmful and potentially harmful constituents than found in cigarette smoke • "Aerosol" refers to a gaseous suspension of fine solid particles and/or liquid droplets • "Combustion" is the process of burning a substance in oxygen, producing heat and often light • "Smoke" is a visible suspension of solid particles, liquid droplets and gases in air, emitted when a material burns • "Heated tobacco units," or "HTUs," is the term PMI uses to refer to heated tobacco consumables, which for PMI include the company's HEETS, HEETS Creations, HEETS Dimensions, HEETS Marlboro and HEETS FROM MARLBORO (defined collectively as HEETS), Marlboro Dimensions, Marlboro HeatSticks and Parliament HeatSticks, as well as the KT&G-licensed brand, Fiit and Miix (outside of Korea) • The IQOS heat-not-burn device is a precisely controlled heating device into which a specially designed and proprietary tobacco unit is inserted and heated to generate an aerosol • "PMI heat-not-burn products" include licensed KT&G heat-not-burn products • "PMI HTUs" include licensed KT&G HTUs • HTU "offtake volume" represents the estimated retail offtake of HTUs based on a selection of sales channels that vary by market, but notably include retail points of sale and e-commerce platforms • HTU "offtake share" represents the estimated retail offtake volume of HTUs divided by the sum of estimated total offtake volume for cigarettes and HTUs • Market share for HTUs is defined as the total sales volume for HTUs as a percentage of the total estimated sales volume for cigarettes and HTUs • "Total IQOS users" is defined as the estimated number of Legal Age (minimum 18 years) users of PMI heat-not-burn products for which PMI HTUs represented at least 5% of their daily tobacco consumption over the past seven days. Note: as of December 2020, PMI heat- not-burn products and HTUs include licensed KT&G heat-not-burn products and HTUs, respectively 35 Glossary: Reduced-Risk Products (cont.) • The estimated number of adults who have "switched to IQOS and stopped smoking" reflects:⎼ for markets where there are no heat-not-burn products other than PMI heat-not-burn products: daily individual consumption of PMI HTUs represents the totality of their daily tobacco consumption in the past seven days⎼ for markets where PMI heat-not-burn products are among other heat-not-burn products: daily individual consumption of HTUs represents the totality of their daily tobacco consumption in the past seven days, of which at least 70% is PMI HTUs Note: as of December 2020, PMI heat-not-burn products and HTUs include licensed KT&G heat-not-burn products and HTUs, respectively • "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 • "Acquisition" refers to our efforts to switch LAS from smoking cigarettes to RRPs or to switch LAU from competing smoke-free products to PMI’s RRPs • "Retention" refers to our efforts to deter LAU from going back to smoking cigarettes or from choosing a competing smoke-free product instead of a PMI RRP 36

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 PMI's Platform 1 product, namely, IQOS 2.4, 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 followed 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 IQOS 2.4 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 orders • On July 7, 2020, the FDA authorized the marketing of a version of PMI's Platform 1 product, namely, IQOS 2.4, together with its heated tobacco units, as a Modified Risk Tobacco Product (MRTP). In doing so, the agency found that an IQOS exposure modification order is appropriate to promote the public health. The decision followed a review of the extensive scientific evidence package PMI submitted to the FDA in December 2016 to support its MRTP applications • On December 7, 2020, the FDA confirmed that the marketing of a version of PMI's Platform 1 product, namely, IQOS 3, is appropriate for the protection of public health and authorized it for sale in the U.S. The FDA’s decision followed an assessment of a PMI's PMTA filed with the agency in March 2020 • 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 37 38 2015 2016 2017 2018 2019 2020 R&D expenditure (smoke-free/total) 70% 72% 74% 92% 98% 99% Commercial expenditure (Marketing) (smoke-free/total) 8% 15% 39% 60% 71% 76% Net revenues (smoke-free/total) 0.2% 2.7% 12.7% 13.8% 18.7% 23.8% Smoke-free product shipment ratio(a) (smoke-free/total) 0.1% 0.9% 4.4% 5.1% 7.6% 10.4% Estimated users who have stopped smoking and switched to IQOS(b) (in millions) - 1.5 4.7 6.6 9.7 12.7 Proportion of markets where PMI smoke-free products are available, which are outside the OECD - 32% 41% 44% 45%(c) 52%(c) Number of markets where net revenues from smoke- free products exceed 50% of total net revenues - - 1 3 4 6 (a) 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 (b) See Glossary for definition (c) Following recent international sanctions, IQOS is no longer available for sale in Belarus from Q3, 2021 Note: List of OECD group members as of December 2020 Source: PMI Financials or estimates, IQOS user panels and PMI Market Research Business Transformation Metrics Shifting Our Resources to Deliver a Smoke-Free Future

Key Cities Provide Excellent Base for Growth 39 (a) Japan total market includes the cigarillo category Note: Kuala L. is Kuala Lumpur Source: PMI Financials or estimates 33.6% 26.0% 23.9% 21.0% 20.5% 19.5% 16.9% 14.8% 14.4% Vilnius Tokyo Kiev Athens Bratislava Rome Prague Moscow Warsaw 14.3% 14.1% 12.9% 9.6% 8.6% 7.9% 7.5% 5.2% 2.4% Milan Lisbon Kuala L. Seoul Munich Bucharest Zurich London Madrid +3.8pp +3.2pp +5.2pp +5.8pp +1.9pp +2.6pp +4.8pp (0.2)pp +2.0pp +2.4pp +2.6pp +0.5pp PMI HTU Offtake Shares (Q2, 2021) +2.4pp +0.4pp Change vs. PY (a) +2.9pp +8.6pp +3.8pp +4.5pp EU Region: HEETS SoM Performance in Select Markets Note: Select markets where HEETS share is ≥ 1%. Sales volume of PMI HTUs as a percentage of the total industry sales volume for cigarettes and HTUs Source: PMI Financials or estimates 40 Q2, 2021 Growth vs. PY Q2, 2021 Growth vs. PY Q2, 2021 Growth vs. PY Croatia 6.0% +1.4pp Italy 11.2% +3.5pp Romania 4.3% +1.7pp Czech Republic 10.1 +0.5 Latvia 11.0 +0.5pp Slovak Republic 11.7 +3.0 Germany 2.7 +0.7 Lithuania 22.8 +3.7 Slovenia 7.0 +2.3 Greece 13.9 +2.6 Poland 6.3 +1.9 Switzerland 5.7 +1.7 Hungary 17.6 +8.9 Portugal 11.8 +3.8 UK 2.1 +0.9

Source: PMI Financials or estimates 2021: EPS Guidance ($/share) 41 Full-Year ≥ 2021 Forecast 2020 Organic Growth Reported Diluted EPS $5.76 – $5.86 $5.16 - Saudi Arabia customs assessments 0.14 – - Asset impairment and exit costs 0.07 0.08 - Fair value adjustment for equity security investments 0.04 - Tax items (0.06) - Brazil indirect tax credit (0.05) Adjusted Diluted EPS $5.97 – $6.07 $5.17 - Currency (0.18) Adjusted Diluted EPS, excluding currency $5.79 – $5.89 $5.17 12% – 14% PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures 42 Reconciliation of Reported Diluted EPS to Reported Diluted EPS, excluding Currency, and Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS, excluding Currency (Unaudited) Quarters Ended June 30, 2021 2020 % Change Reported Diluted EPS $ 1.39 $ 1.25 11.2% Less: Currency 0.05 Reported Diluted EPS, excluding Currency $ 1.34 $ 1.25 7.2% Quarters Ended June 30, Year Ended 2021 2020 % Change 2020 Reported Diluted EPS $ 1.39 $ 1.25 11.2% $ 5.16 Saudi Arabia customs assessments 0.14 - - Asset impairment and exit costs 0.04 0.04 0.08 Fair value adjustment for equity security investments - - 0.04 Tax items - - (0.06) Brazil indirect tax credit - - (0.05) Adjusted Diluted EPS $ 1.57 $ 1.29 21.7% $ 5.17 Less: Currency 0.05 Adjusted Diluted EPS, excluding Currency $ 1.52 $ 1.29 17.8%

43 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) (a) Includes a reduction in net revenues of $246 million related to the Saudi Arabia customs assessments 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 Currency Net Revenues excluding Currency Acquisitions Net Revenues excluding Currency & Acquisitions Quarters Ended June 30, Net Revenues Total Excluding Currency Excluding Currency & Acquisitions 2021 Reduced-Risk Products 2020 % Change $ 987 $ 90 $ 896 $ - $ 896 European Union $ 530 86.2% 69.1% 69.1% 340 6 334 - 334 Eastern Europe 261 30.5% 28.3% 28.3% 33 1 32 - 32 Middle East & Africa 8 +100% +100% +100% 1 - 1 - 1 South & Southeast Asia - - - - 903 11 891 - 891 East Asia & Australia 802 12.6% 11.2% 11.2% 12 - 12 - 12 Latin America & Canada 5 +100% +100% +100% $ 2,276 $ 108 $ 2,167 $ - $ 2,167 Total RRPs $ 1,606 41.7% 35.0% 35.0% 2021 PMI 2020 % Change $ 3,149 $ 288 $ 2,861 $ - $ 2,861 European Union $ 2,475 27.2% 15.6% 15.6% 895 14 881 - 881 Eastern Europe 783 14.3% 12.5% 12.5% 560 (a) (16) 576 - 576 Middle East & Africa 704 (20.5)% (18.2)% (18.2)% 1,046 68 978 - 978 South & Southeast Asia 889 17.7% 10.0% 10.0% 1,514 37 1,477 - 1,477 East Asia & Australia 1,432 5.7% 3.1% 3.1% 430 29 401 - 401 Latin America & Canada 368 16.8% 9.0% 9.0% $ 7,594 $ 420 $ 7,174 $ - $ 7,174 Total PMI $ 6,651 14.2% 7.9% 7.9% Net Revenues 44 PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Net Revenues to Adjusted Net Revenues, excluding Currency and Acquisitions ($ in millions) / (Unaudited) (a) Represents the Saudi Arabia customs assessments Net Revenues Adjusted Net Revenues Currency Adjusted Net Revenues excluding Currency Acqui- sitions Adjusted Net Revenues excluding Currency & Acqui- sitions Net Revenues Adjusted Net Revenues Total Excluding Currency Excluding Currency & Acqui- sitions 2021 2020 $ 3,149 $ - $ 3,149 $ 288 $ 2,861 $ - $ 2,861 European Union $ 2,475 $ - $ 2,475 27.2% 15.6% 15.6% 895 - 895 14 881 - 881 Eastern Europe 783 - 783 14.3% 12.5% 12.5% 560 (246) (a) 806 (16) 822 - 822 Middle East & Africa 704 - 704 14.5% 16.8% 16.8% 1,046 - 1,046 68 978 - 978 South & Southeast Asia 889 - 889 17.7% 10.0% 10.0% 1,514 - 1,514 37 1,477 - 1,477 East Asia & Australia 1,432 - 1,432 5.7% 3.1% 3.1% 430 - 430 29 401 - 401 Latin America & Canada 368 - 368 16.8% 9.0% 9.0% $ 7,594 $ (246) $ 7,840 $ 420 $ 7,420 $ - $ 7,420 Total PMI $ 6,651 $ - $ 6,651 17.9% 11.6% 11.6% Special Items Special Items Quarters Ended June 30, % Change

45 PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Operating Income to Adjusted Operating Income, excluding Currency and Acquisitions ($ in millions) / (Unaudited) (a) Represents asset impairment and exit costs (b) Includes the Saudi Arabia customs assessments ($246 million) and asset impairment and exit costs ($8 million) Operating Income Adjusted Operating Income Currency Adjusted Operating Income excluding Currency Acqui- sitions Adjusted Operating Income excluding Currency & Acqui- sitions Operating Income Adjusted Operating Income Total Excluding Currency Excluding Currency & Acqui- sitions 2021 2020 $ 1,641 $ (35) (a) $ 1,676 $ 178 $ 1,498 $ - $ 1,498 European Union $ 1,178 $ (27) $ 1,205 39.1% 24.3% 24.3% 314 (7) (a) 321 (39) 360 - 360 Eastern Europe 266 (7) 273 17.6% 31.9% 31.9% 16 (254) (b) 270 (32) 302 - 302 Middle East & Africa 237 (9) 246 9.8% 22.8% 22.8% 331 (10) (a) 341 19 322 - 322 South & Southeast Asia 289 (11) 300 13.7% 7.3% 7.3% 715 (15) (a) 730 (1) 731 - 731 East Asia & Australia 669 (13) 682 7.0% 7.2% 7.2% 112 (4) (a) 116 2 114 - 114 Latin America & Canada 92 (4) 96 20.8% 18.8% 18.8% $ 3,129 $ (325) $ 3,454 $ 127 $ 3,327 $ - $ 3,327 Total PMI $ 2,731 $ (71) $ 2,802 23.3% 18.7% 18.7% Asset Impairment & Exit Costs and Others Asset Impairment & Exit Costs Quarters Ended June 30, % Change 46 PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Adjusted Operating Income Margin, excluding Currency and Acquisitions ($ in millions) / (Unaudited) (a) For the calculation of Adjusted Operating Income and Adjusted Operating Income excluding currency and acquisitions refer to slide 45 (b) For the calculation of Adjusted Net Revenues excluding currency and acquisitions refer to slide 44 Adjusted Operating Income (a) Adjusted Net Revenues (b) Adjusted Operating Income Margin Adjusted Operating Income excluding Currency (a) Adjusted Net Revenues excluding Currency (b) Adjusted Operating Income Margin excluding Currency Adjusted Operating Income excluding Currency & Acqui- sitions (a) Adjusted Net Revenues excluding Currency & Acqui- sitions (b) Adjusted Operating Income Margin excluding Currency & Acqui- sitions Adjusted Operating Income (a) Adjusted Net Revenues (b) Adjusted Operating Income Margin Adjusted Operating Income Margin Adjusted Operating Income Margin excluding Currency Adjusted Operating Income Margin excluding Currency & Acqui- sitions 2021 2020 % Points Change $ 1,676 $ 3,149 53.2% $ 1,498 $ 2,861 52.4% $ 1,498 $ 2,861 52.4% European Union $ 1,205 $ 2,475 48.7% 4.5 3.7 3.7 321 895 35.9% 360 881 40.9% 360 881 40.9% Eastern Europe 273 783 34.9% 1.0 6.0 6.0 270 806 33.5% 302 822 36.7% 302 822 36.7% Middle East & Africa 246 704 34.9% (1.4) 1.8 1.8 341 1,046 32.6% 322 978 32.9% 322 978 32.9% South & Southeast Asia 300 889 33.7% (1.1) (0.8) (0.8) 730 1,514 48.2% 731 1,477 49.5% 731 1,477 49.5% East Asia & Australia 682 1,432 47.6% 0.6 1.9 1.9 116 430 27.0% 114 401 28.4% 114 401 28.4% Latin America & Canada 96 368 26.1% 0.9 2.3 2.3 $ 3,454 $ 7,840 44.1% $ 3,327 $ 7,420 44.8% $ 3,327 $ 7,420 44.8% Total PMI $ 2,802 $ 6,651 42.1% 2.0 2.7 2.7 Quarters Ended June 30,

47 PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Net Revenues to Adjusted Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions ($ in millions) / (Unaudited) (a) Represents the Saudi Arabia customs assessments Note: Sum of product categories might not foot to Total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million Net Revenues Adjusted Net Revenues Currency Adjusted Net Revenues excluding Currency Acqui- sitions Adjusted Net Revenues excluding Currency & Acqui- sitions Quarters Ended June 30, Net Revenues Adjusted Net Revenues Total Excluding Currency Excluding Currency & Acqui- sitions 2021 2020 % Change $ 5,318 $ (246) (a) $ 5,564 $ 312 $ 5,253 $ - $ 5,253 Total Combustible $ 5,045 $ - $ 5,045 10.3% 4.1% 4.1% 2,276 - 2,276 108 2,167 - 2,167 Total RRPs 1,606 - 1,606 41.7% 35.0% 35.0% $ 7,594 $ (246) $ 7,840 $ 420 $ 7,420 $ - $ 7,420 Total PMI $ 6,651 $ - $ 6,651 17.9% 11.6% 11.6% Special Items Special Items PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures 48 Reconciliation of Reported Diluted EPS to Reported Diluted EPS, excluding Currency, and Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS, excluding Currency (Unaudited) Six Months Ended June 30, 2021 2020 % Change Reported Diluted EPS $ 2.93 $ 2.42 21.1% Less: Currency 0.15 Reported Diluted EPS, excluding Currency $ 2.78 $ 2.42 14.9% Six Months Ended June 30, Year Ended 2021 2020 % Change 2020 Reported Diluted EPS $ 2.93 $ 2.42 21.1% $ 5.16 Saudi Arabia customs assessments 0.14 - - Asset impairment and exit costs 0.07 0.04 0.08 Fair value adjustment for equity security investments - 0.04 0.04 Tax items - - (0.06) Brazil indirect tax credit - - (0.05) Adjusted Diluted EPS $ 3.14 $ 2.50 25.6% $ 5.17 Less: Currency 0.15 Adjusted Diluted EPS, excluding Currency $ 2.99 $ 2.50 19.6%

49 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) (a) Includes a reduction in net revenues of $246 million related to the Saudi Arabia customs assessments 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 Currency Net Revenues excluding Currency Acquisitions Net Revenues excluding Currency & Acquisitions Six Months Ended June 30, Net Revenues Total Excluding Currency Excluding Currency & Acquisitions 2021 Reduced-Risk Products 2020 % Change $ 1,945 $ 166 $ 1,780 $ - $ 1,780 European Union $ 1,155 68.5% 54.1% 54.1% 644 (39) 683 - 683 Eastern Europe 526 22.6% 29.9% 29.9% 54 1 53 - 53 Middle East & Africa 52 4.0% 2.6% 2.6% 3 - 3 - 3 South & Southeast Asia - - - - 1,727 48 1,679 - 1,679 East Asia & Australia 1,415 22.0% 18.7% 18.7% 24 - 24 - 24 Latin America & Canada 13 79.5% 77.0% 77.0% $ 4,398 $ 176 $ 4,222 $ - $ 4,222 Total RRPs $ 3,161 39.1% 33.6% 33.6% 2021 PMI 2020 % Change $ 6,058 $ 523 $ 5,535 $ - $ 5,535 European Union $ 5,010 20.9% 10.5% 10.5% 1,691 (61) 1,752 - 1,752 Eastern Europe 1,571 7.6% 11.5% 11.5% 1,361 (a) (39) 1,400 - 1,400 Middle East & Africa 1,580 (13.9)% (11.4)% (11.4)% 2,219 96 2,123 - 2,123 South & Southeast Asia 2,140 3.7% (0.8)% (0.8)% 2,986 108 2,878 - 2,878 East Asia & Australia 2,687 11.1% 7.1% 7.1% 864 18 846 - 846 Latin America & Canada 816 5.9% 3.7% 3.7% $ 15,179 $ 645 $ 14,534 $ - $ 14,534 Total PMI $ 13,804 10.0% 5.3% 5.3% Net Revenues 50 PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Net Revenues to Adjusted Net Revenues, excluding Currency and Acquisitions ($ in millions) / (Unaudited) (a) Represents the Saudi Arabia customs assessments Net Revenues Adjusted Net Revenues Currency Adjusted Net Revenues excluding Currency Acqui- sitions Adjusted Net Revenues excluding Currency & Acqui- sitions Net Revenues Adjusted Net Revenues Total Excluding Currency Excluding Currency & Acqui- sitions 2021 2020 $ 6,058 $ - $ 6,058 $ 523 $ 5,535 $ - $ 5,535 European Union $ 5,010 $ - $ 5,010 20.9% 10.5% 10.5% 1,691 - 1,691 (61) 1,752 - 1,752 Eastern Europe 1,571 - 1,571 7.6% 11.5% 11.5% 1,361 (246) (a) 1,607 (39) 1,646 - 1,646 Middle East & Africa 1,580 - 1,580 1.7% 4.2% 4.2% 2,219 - 2,219 96 2,123 - 2,123 South & Southeast Asia 2,140 - 2,140 3.7% (0.8)% (0.8)% 2,986 - 2,986 108 2,878 - 2,878 East Asia & Australia 2,687 - 2,687 11.1% 7.1% 7.1% 864 - 864 18 846 - 846 Latin America & Canada 816 - 816 5.9% 3.7% 3.7% $ 15,179 $ (246) $ 15,425 $ 645 $ 14,780 $ - $ 14,780 Total PMI $ 13,804 $ - $ 13,804 11.7% 7.1% 7.1% Special Items Special Items Six Months Ended June 30, % Change

51 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) (a) Represents asset impairment and exit costs (b) Includes the Saudi Arabia customs assessments ($246 million) and asset impairment and exit costs ($10 million) Operating Income Adjusted Operating Income Currency Adjusted Operating Income excluding Currency Acqui- sitions Adjusted Operating Income excluding Currency & Acqui- sitions Operating Income Adjusted Operating Income Total Excluding Currency Excluding Currency & Acqui- sitions 2021 2020 $ 3,131 $ (44) (a) $ 3,175 $ 334 $ 2,841 $ - $ 2,841 European Union $ 2,336 $ (27) $ 2,363 34.4% 20.2% 20.2% 575 (9) (a) 584 (32) 616 - 616 Eastern Europe 365 (7) 372 57.0% 65.6% 65.6% 351 (256) (b) 607 (45) 652 - 652 Middle East & Africa 558 (9) 567 7.1% 15.0% 15.0% 860 (13) (a) 873 32 841 - 841 South & Southeast Asia 888 (11) 899 (2.9)% (6.5)% (6.5)% 1,410 (46) (a) 1,456 17 1,439 - 1,439 East Asia & Australia 1,155 (13) 1,168 24.7% 23.2% 23.2% 246 (5) (a) 251 8 243 - 243 Latin America & Canada 218 (4) 222 13.1% 9.5% 9.5% $ 6,573 $ (373) $ 6,946 $ 314 $ 6,632 $ - $ 6,632 Total PMI $ 5,520 $ (71) $ 5,591 24.2% 18.6% 18.6% Asset Impairment & Exit Costs and Others Asset Impairment & Exit Costs Six Months Ended June 30, % Change 52 PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Adjusted Operating Income Margin, excluding Currency and Acquisitions ($ in millions) / (Unaudited) (a) For the calculation of Adjusted Operating Income and Adjusted Operating Income excluding currency and acquisitions refer to slide 51 (b) For the calculation of Adjusted Net Revenues excluding currency and acquisitions refer to slide 50 Adjusted Operating Income (a) Adjusted Net Revenues (b) Adjusted Operating Income Margin Adjusted Operating Income excluding Currency (a) Adjusted Net Revenues excluding Currency (b) Adjusted Operating Income Margin excluding Currency Adjusted Operating Income excluding Currency & Acqui- sitions (a) Adjusted Net Revenues excluding Currency & Acqui- sitions (b) Adjusted Operating Income Margin excluding Currency & Acqui- sitions Adjusted Operating Income (a) Adjusted Net Revenues (b) Adjusted Operating Income Margin Adjusted Operating Income Margin Adjusted Operating Income Margin excluding Currency Adjusted Operating Income Margin excluding Currency & Acqui- sitions 2021 2020 % Points Change $ 3,175 $ 6,058 52.4% $ 2,841 $ 5,535 51.3% $ 2,841 $ 5,535 51.3% European Union $ 2,363 $ 5,010 47.2% 5.2 4.1 4.1 584 1,691 34.5% 616 1,752 35.2% 616 1,752 35.2% Eastern Europe 372 1,571 23.7% 10.8 11.5 11.5 607 1,607 37.8% 652 1,646 39.6% 652 1,646 39.6% Middle East & Africa 567 1,580 35.9% 1.9 3.7 3.7 873 2,219 39.3% 841 2,123 39.6% 841 2,123 39.6% South & Southeast Asia 899 2,140 42.0% (2.7) (2.4) (2.4) 1,456 2,986 48.8% 1,439 2,878 50.0% 1,439 2,878 50.0% East Asia & Australia 1,168 2,687 43.5% 5.3 6.5 6.5 251 864 29.1% 243 846 28.7% 243 846 28.7% Latin America & Canada 222 816 27.2% 1.9 1.5 1.5 $ 6,946 $ 15,425 45.0% $ 6,632 $ 14,780 44.9% $ 6,632 $ 14,780 44.9% Total PMI $ 5,591 $ 13,804 40.5% 4.5 4.4 4.4 Six Months Ended June 30,

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Net Revenues by Product Category ($ in millions) / (Unaudited) Note: Sum of Regions might not foot to Total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million Years Ended December 31, Reduced-Risk Products 2020 2019 2018 2017 2016 2015 European Union $ 2,649 $ 1,724 $ 865 $ 269 $ 57 $ 29 Eastern Europe 1,128 844 324 55 6 - Middle East & Africa 57 321 382 94 4 - South & Southeast Asia 1 - - - - - East Asia & Australia 2,961 2,671 2,506 3,218 666 35 Latin America & Canada 31 27 19 4 1 - Total RRPs $ 6,827 $ 5,587 $ 4,096 $ 3,640 $ 733 $ 64 PMI 2020 2019 2018 2017 2016 2015 European Union $ 10,702 $ 9,817 $ 9,298 $ 8,318 $ 8,162 $ 8,068 Eastern Europe 3,378 3,282 2,921 2,711 2,484 2,735 Middle East & Africa 3,088 4,042 4,114 3,988 4,516 4,629 South & Southeast Asia 4,396 5,094 4,656 4,417 4,396 4,288 East Asia & Australia 5,429 5,364 5,580 6,373 4,285 3,915 Latin America & Canada 1,701 2,206 3,056 2,941 2,842 3,159 Total PMI $ 28,694 $ 29,805 $ 29,625 $ 28,748 $ 26,685 $ 26,794 Net Revenues 53 Delivering a Smoke-Free Future 2021 Second-Quarter Results July 20, 2021



PHILIP MORRIS INTERNATIONAL INC.

By:						/s/ DARLENE QUASHIE HENRY
Name:						Darlene Quashie Henry
Title:						Vice President, Associate General Counsel & 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 July 20, 2021 (furnished pursuant to Item 2.02).


99.2			Conf erence Call Script dated July 20 , 2021 (furnished pursuant to Item 7.01).


99.3			Webcast Slides dated July 20 , 2021 (f urnished 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.