pm-20210204

Exhibit 99.1

PRESS RELEASE

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PHILIP MORRIS INTERNATIONAL INC. REPORTS 2020 FOURTH-QUARTER & FULL-YEAR RESULTS;

2020 FULL-YEAR REPORTED DILUTED EPS OF $5.16 VERSUS $4.61 IN 2019,

REFLECTING ADJUSTED DILUTED EPS GROWTH OF 7.0% ON AN ORGANIC BASIS;

PROVIDES 2021 EPS FORECAST

NEW YORK, February 4, 2021 – Philip Morris International Inc. (NYSE: PM) today announces its 2020 fourth-quarter and full-year results. Comparisons presented in this press release on a "like-for-like" basis reflect pro forma 2019 results, which have been adjusted for the deconsolidation of PMI's Canadian subsidiary, Rothmans, Benson & Hedges, Inc. (RBH), effective March 22, 2019 (the date of deconsolidation). In addition, PMI's total market share has been restated for previous periods to reflect the deconsolidation. Growth rates presented in this press release on an organic basis reflect currency-neutral underlying results and "like-for-like" comparisons, where applicable. Adjustments, other calculations and reconciliations to the most directly comparable U.S. GAAP measures are included in the schedules to this press release.

2020 FULL-YEAR & FOURTH-QUARTER HIGHLIGHTS

2020 Full-Year

•Reported diluted EPS of $5.16, up by 11.9%; up by 18.9%, excluding currency

•Adjusted diluted EPS of $5.17, down by 0.4%; up by 7.0% on an organic basis

•Cigarette and heated tobacco unit shipment volume down by 8.1% (reflecting cigarette shipment volume down by 11.1%, and heated tobacco unit shipment volume up by 27.6% to 76.1 billion units); down by 7.9% on a like-for-like basis

•Market share for heated tobacco units in IQOS markets, excluding the U.S., up by 1.7 points to 6.1%

•Net revenues down by 3.7%; down by 1.6% on an organic basis

•Operating income up by 10.8%; up by 15.3%, excluding currency

•Adjusted operating income up by 4.6% on an organic basis

•Adjusted operating income margin of 40.8%, up by 2.4 points on an organic basis

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

•Total IQOS users at year-end estimated at approximately 17.6 million, of which approximately 12.7 million have switched to IQOS and stopped smoking

•On July 7, 2020, the U.S. Food and Drug Administration (FDA) authorized the marketing of a version of IQOS as a Modified Risk Tobacco Product

•On December 7, 2020, the U.S. FDA authorized the sale of the IQOS 3 device in the U.S. through the issuance of a premarket tobacco marketing order

2020 Fourth-Quarter

•Reported diluted EPS of $1.27, up by 22.1%; up by 26.9%, excluding currency

•Adjusted diluted EPS of $1.26, up by 3.3%; up by 7.4% on an organic basis

•Cigarette and heated tobacco unit shipment volume down by 8.2% (reflecting cigarette shipment volume down by 11.7%, and heated tobacco unit shipment volume up by 26.9% to 21.7 billion units)

•Market share for heated tobacco units in IQOS markets, excluding the U.S., up by 1.8 points to 6.7%

•Net revenues down by 3.5%; down by 3.5% on an organic basis

•Operating income up by 15.9%; up by 17.8%, excluding currency

•Adjusted operating income up by 1.7% on an organic basis

•Adjusted operating income margin of 38.5%, up by 2.0 points on an organic basis

"In 2020, PMI delivered a robust business performance despite the unprecedented headwinds of the COVID-19 pandemic, with adjusted diluted EPS organic growth of 7.0%, supported by stronger-than-anticipated fourth quarter results," said André Calantzopoulos, Chief Executive Officer.

"We must first and foremost salute the enormous efforts of the entire PMI organization to keep our employees and their families safe, ensure business continuity, rapidly adapt our ways of working and help our local communities."

"IQOS continued to deliver impressive growth in 2020, driving significant increases in our total users, as well as both HTU shipment and in-market sales volumes. During the fourth quarter, we reported record HTU market shares in key IQOS geographies, and exited the year with double-digit national shares in ten markets."

"We enter 2021 with favorable momentum, although certain headwinds remain, notably related to Duty Free, Indonesia and the continued effects of the pandemic. For the full year, we are expecting a significant recovery, with mid-single-digit organic net revenue growth—driven by the growing contribution of IQOS—and further efforts on cost efficiencies driving an acceleration in forecasted adjusted diluted EPS growth to a range of 9% to 11% on the same basis."

2021 FULL-YEAR FORECAST


	Full-Year
	2021 Forecast			2020	Organic Growth

Reported Diluted EPS	$5.90	-	$6.00	$ 5.16
Tax items				(0.06)
Asset impairment and exit costs				0.08
Brazil indirect tax credit				(0.05)
Fair value adjustment for equity security investments				0.04
Adjusted Diluted EPS	$5.90	-	$6.00	$ 5.17
Currency	(0.25)
Adjusted Diluted EPS, excluding currency	$5.65	-	$5.75	$ 5.17	9%	-	11%

Reported diluted EPS forecast to be in a range of $5.90 to $6.00, at prevailing exchange rates, representing a projected increase of around 14% to 16% versus reported diluted EPS of $5.16 in 2020.

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Excluding a favorable currency impact, at prevailing exchange rates, of approximately $0.25 per share, this forecast represents a projected increase of around 9% to 11% versus adjusted diluted EPS of $5.17 in 2020, as detailed in the above table.

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;

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

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

•Heated tobacco unit shipment volume of 90 to 100 billion units;

•Net revenue growth of approximately 4% to 7% on an organic basis;

•An increase in adjusted operating income margin of at least 150 basis points on an organic basis;

•Operating cash flow of approximately $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 share repurchases; and

•First-quarter reported diluted EPS of around $1.40, including a favorable currency impact, at prevailing exchange rates, of around $0.09 per share, notably reflecting:

•Net revenue that is down slightly to broadly stable on an organic basis, with an unfavorable comparison versus the first quarter of 2019; and

•Strong operating income margin growth, primarily driven by the growing weight of IQOS in the business and continued cost efficiencies.

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 RBH, any unusual events, and any COVID-19-related developments different from the assumptions set forth in the company's forecast.

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

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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.

U.S. Food and Drug Administration Authorizes IQOS 3 for Sale in the United States

On December 7, 2020, the U.S. Food and Drug Administration (FDA) confirmed that IQOS 3, Philip Morris International’s electrically heated tobacco system, is appropriate for the protection of public health and authorized it for sale in the U.S. The FDA’s decision followed the assessment of a premarket tobacco product application (PMTA) filed with the agency in March 2020.

The IQOS 3 device contains a number of technological advancements compared to a previously authorized IQOS device (IQOS 2.4), including longer battery life and quicker recharge between uses.

In its decision, the FDA noted that international survey data reviewed by the agency found no evidence of increased uptake of IQOS by youth or young adults, while use patterns available for the previously authorized version of IQOS within the U.S. have not raised new concerns regarding product use in youth and young adults.

The IQOS 3 PMTA authorization is independent of the modified risk tobacco product application (MRTPA) authorization for IQOS 2.4. PMI expects to file an application seeking an exposure modification order for IQOS 3.

Brazil Indirect Tax Credit

Following a final and enforceable decision by the highest court in Brazil in October 2020, PMI recorded a gain of $119 million for tax credits representing overpayments of indirect taxes for the period from March 2012 through December 2019. These tax credits will be applied to future tax liabilities in Brazil.

A decision regarding an additional amount of overpaid indirect taxes of approximately $90 million is still pending before this court.

Conference Call

A conference call, hosted by André Calantzopoulos, Chief Executive Officer, Jacek Olczak, Chief Operating Officer, and Emmanuel Babeau, Chief Financial Officer, will be webcast at 10:30 a.m., Eastern Time, on February 4, 2021. Access is at www.pmi.com/2020Q4earnings.

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CONSOLIDATED SHIPMENT VOLUME & MARKET SHARE


PMI Shipment Volume by Region	Fourth-Quarter				Full-Year
(million units)	2020	2019	Change		2020	2019	Change
Cigarettes
European Union	37,278	41,226	(9.6)	%	163,420	174,319	(6.3)	%
Eastern Europe	22,725	25,865	(12.1)	%	93,462	100,644	(7.1)	%
Middle East & Africa	29,912	32,611	(8.3)	%	117,999	134,568	(12.3)	%
South & Southeast Asia	36,609	44,704	(18.1)	%	144,788	174,934	(17.2)	%
East Asia & Australia	9,946	11,301	(12.0)	%	45,100	49,951	(9.7)	%
Latin America & Canada	18,207	19,387	(6.1)	%	63,749	72,293	(11.8)	%
Total PMI	154,677	175,094	(11.7)	%	628,518	706,709	(11.1)	%

Heated Tobacco Units
European Union	5,773	3,759	53.6	%	19,842	12,569	57.9	%
Eastern Europe	6,524	5,240	24.5	%	20,898	13,453	55.3	%
Middle East & Africa	188	593	(68.3)	%	1,022	2,654	(61.5)	%
South & Southeast Asia	26	—	—	%	36	—	—	%
East Asia & Australia	9,063	7,424	22.1	%	33,862	30,677	10.4	%
Latin America & Canada (1)	135	97	39.2	%	451	299	50.8	%
Total PMI	21,709	17,113	26.9	%	76,111	59,652	27.6	%

Cigarettes and Heated Tobacco Units
European Union	43,051	44,985	(4.3)	%	183,262	186,888	(1.9)	%
Eastern Europe	29,249	31,105	(6.0)	%	114,360	114,097	0.2	%
Middle East & Africa	30,100	33,204	(9.3)	%	119,021	137,222	(13.3)	%
South & Southeast Asia	36,635	44,704	(18.0)	%	144,824	174,934	(17.2)	%
East Asia & Australia	19,009	18,725	1.5	%	78,962	80,628	(2.1)	%
Latin America & Canada	18,342	19,484	(5.9)	%	64,200	72,592	(11.6)	%
Total PMI	176,386	192,207	(8.2)	%	704,629	766,361	(8.1)	%
(1) Includes shipments to Altria Group, Inc., commencing in the third quarter of 2019, for sale in the United States under license.

Full-Year

Estimated international industry cigarette and heated tobacco unit volume, excluding China and the U.S., of 2.5 trillion, decreased by 5.8%, due to all PMI Regions, as described in the Regional sections below.

PMI's total shipment volume decreased by 8.1% (or by 7.9% on a like-for-like basis), due to:

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

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

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

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

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•Latin America & Canada, reflecting lower cigarette shipment volume, primarily in Argentina and Mexico, partially offset by Brazil. On a like-for-like basis, PMI's total shipment volume in the Region decreased by 10.3%;

partly offset by

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

Impact of Inventory Movements

The net impact of estimated distributor inventory movements for the full year was immaterial. On a like-for-like basis, PMI’s total in-market sales volume declined by 7.8%.

Fourth-Quarter

PMI's total shipment volume decreased by 8.2%, due to:

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

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

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

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

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

partly offset by

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

Impact of Inventory Movements

The net impact of estimated distributor inventory movements in the fourth quarter was immaterial. PMI’s total in-market sales volume declined by 8.3%.

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PMI Shipment Volume by Brand


PMI Shipment Volume by Brand	Fourth-Quarter				Full-Year
(million units)	2020	2019	Change		2020	2019	Change
Cigarettes
Marlboro	57,521	66,025	(12.9)	%	233,158	262,908	(11.3)	%
L&M	21,883	23,107	(5.3)	%	91,098	92,873	(1.9)	%
Chesterfield	12,864	13,683	(6.0)	%	52,139	57,185	(8.8)	%
Philip Morris	10,822	12,216	(11.4)	%	45,645	49,164	(7.2)	%
Parliament	9,162	9,639	(4.9)	%	34,737	38,723	(10.3)	%
Sampoerna A	9,061	9,121	(0.7)	%	32,862	35,133	(6.5)	%
Dji Sam Soe	6,410	9,346	(31.4)	%	24,754	32,435	(23.7)	%
Bond Street	5,632	6,926	(18.7)	%	24,113	28,025	(14.0)	%
Lark	3,429	4,027	(14.8)	%	15,489	19,602	(21.0)	%
Next	2,277	2,202	3.4	%	8,980	8,602	4.4	%
Others	15,616	18,802	(16.9)	%	65,543	82,059	(20.1)	%
Total Cigarettes	154,677	175,094	(11.7)	%	628,518	706,709	(11.1)	%
Heated Tobacco Units (1)	21,709	17,113	26.9	%	76,111	59,652	27.6	%
Total PMI	176,386	192,207	(8.2)	%	704,629	766,361	(8.1)	%
(1) Includes shipments to Altria Group, Inc., commencing in the third quarter of 2019, for sale in the United States under license.
Note: Sampoerna A includes Sampoerna; Philip Morris includes Philip Morris/Dubliss; Lark includes Lark Harmony; and Next includes Next/Dubliss.

Full-Year

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

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

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

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

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

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

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

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

•Bond Street, largely due to Russia and Ukraine;

•Lark, primarily due to Japan and Turkey; and

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

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

•Next, notably driven by Israel and Russia.

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

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International Share of Market

PMI's total international market share (excluding China and the U.S.), defined as PMI's cigarette and heated tobacco unit sales volume as a percentage of total industry cigarette and heated tobacco unit sales volume, decreased by 0.7 points to 27.7%, reflecting:

•Total international market share for cigarettes of 24.7%, down by 1.5 points; and

•Total international market share for heated tobacco units of 3.0%, up by 0.8 points.

PMI's total international cigarette sales volume as a percentage of total industry cigarette sales volume was down by 1.2 points to 25.7%, mainly reflecting: out-switching to heated tobacco units, as well as lower cigarette market share and/or an unfavorable geographic mix impact, notably in Indonesia, Mexico, the Philippines and PMI Duty Free, partly offset by Brazil and Germany.

In 2020, PMI owned five of the world's top 15 international cigarette brands, with international cigarette market shares as follows: Marlboro, 9.5%; L&M, 3.7%; Chesterfield, 2.2%; Philip Morris, 1.9%; and Parliament, 1.4%.

Fourth-Quarter

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

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

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

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

•Philip Morris, primarily due to Argentina, Indonesia, Italy and Russia;

•Parliament, mainly due to PMI Duty Free and Russia, partly offset by Saudi Arabia and Turkey;

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

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

•Bond Street, notably due to Russia and Ukraine;

•Lark, primarily due to Japan; and

•"Others," notably due to: mid-price Fortune in the Philippines and Sampoerna U in Indonesia, partly offset by Sampoerna Hijau in Indonesia.

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

•Next, mainly driven by Canada.

International Share of Market

PMI's total international market share (excluding China and the U.S.) decreased by 0.9 points to 27.4%, reflecting:

•Total international market share for cigarettes of 24.2%, down by 1.7 points; and

•Total international market share for heated tobacco units of 3.1%, up by 0.7 points.

PMI's total international cigarette sales volume as a percentage of total industry cigarette sales volume was down by 1.5 points to 25.2%, mainly reflecting: out-switching to heated tobacco units, as well as lower cigarette market share and/or an unfavorable geographic mix impact, notably in Indonesia, Japan, Mexico, the Philippines and PMI Duty Free, partly offset by Brazil and Turkey.

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CONSOLIDATED FINANCIAL SUMMARY

Full-Year


Financial Summary - Years Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2020		2019		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other(1)
(in millions)
Net Revenues	$ 28,694		$ 29,805		(3.7)	%	(2.2)	%	(1,111)	(469)	794	(1,183)	(253)
Cost of Sales	(9,569)		(10,513)		9.0	%	7.5	%	944	158	—	464	322
Marketing, Administration and Research Costs (2)	(7,384)		(8,695)		15.1	%	17.0	%	1,311	(166)	—	—	1,477
Amortization of Intangibles	(73)		(66)		(10.6)	%	(13.6)	%	(7)	2	—	—	(9)
Operating Income	$ 11,668		$ 10,531		10.8	%	15.3	%	1,137	(475)	794	(719)	1,537
Asset Impairment & Exit Costs (3)	(149)		(422)		64.7	%	64.7	%	273	—	—	—	273
Canadian Tobacco Litigation-Related Expense (3)	—		(194)		+100%		+100%		194	—	—	—	194
Loss on Deconsolidation of RBH (3)	—		(239)		+100%		+100%		239	—	—	—	239
Russia Excise and VAT Audit Charge (3)	—		(374)		+100%		+100%		374	—	—	—	374
Brazil Indirect Tax Credit (3)	119		—		—	%	—	%	119	—	—	—	119
Adjusted Operating Income	$ 11,698		$ 11,760		(0.5)	%	3.5	%	(62)	(475)	794	(719)	338

Adjusted Operating Income Margin	40.8	%	39.5	%	1.3pp		2.2pp
(1) Cost/Other variance includes the impact of the RBH deconsolidation.
(2) Favorable Cost/Other variance includes the 2019 Canadian tobacco litigation-related expense, the 2019 loss on deconsolidation of RBH, the 2019 and 2020 asset impairment and exit costs, the 2019 Russia excise and VAT audit charge, the 2020 Brazil indirect tax credit, and the impact of the RBH deconsolidation.
(3) Included in Marketing, Administration and Research Costs above.
Note: Net Revenues include revenues from shipments of Platform 1 devices, heated tobacco units and accessories to Altria Group, Inc., commencing in the third quarter of 2019, for sale under license in the United States.

Net revenues decreased by 2.2%, excluding currency, reflecting: unfavorable volume/mix, primarily due to lower cigarette volume (mainly in Argentina, Indonesia, Italy, Japan, Mexico, the Philippines, PMI Duty Free, Poland, Russia and Ukraine, partly offset by Germany), partially offset by higher heated tobacco unit volume (notably in the EU, Japan, Russia and Ukraine, partly offset by PMI Duty Free); and the unfavorable impact of $253 million, shown in "Cost/Other," mainly resulting from the deconsolidation of RBH and lower fees for certain distribution rights billed to customers in certain markets; partly offset by a favorable pricing variance (notably driven by the GCC, Germany, Japan, Mexico, North Africa, the Philippines, PMI Duty Free, Russia and Ukraine, partially offset by Indonesia, Poland and Turkey). On an organic basis, net revenues decreased by 1.6%, as detailed in Schedule 9.

Operating income increased by 15.3%, excluding currency, notably reflecting a favorable comparison, shown in "Cost/Other," of net items recorded in 2020 of $30 million related to asset impairment and exit costs (associated with organizational design optimization) and the Brazil indirect tax credit, to charges recorded in 2019 of $1.2 billion, related to: asset impairment and exit costs (associated with plant closures in Argentina, Colombia,

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Germany and Pakistan), the loss on the deconsolidation of RBH, the Canadian tobacco litigation-related expense, and the Russia excise and VAT audit.

Adjusted operating income increased by 3.5%, excluding currency, primarily reflecting: a favorable pricing variance; lower manufacturing costs (driven by productivity gains related to reduced-risk and combustible products) and lower marketing, administration and research costs (partly driven by cost efficiencies); partially offset by unfavorable volume/mix, mainly due to lower cigarette volume (primarily in Indonesia, Italy, Japan, Mexico, the Philippines, PMI Duty Free, Poland and Russia), partly offset by higher heated tobacco unit volume (notably in the EU, Japan, Russia and Ukraine, partially offset by PMI Duty Free); and the unfavorable impact of the deconsolidation of RBH, included in "Cost/Other." On an organic basis, adjusted operating income increased by 4.6%, as detailed in Schedule 9.

Adjusted operating income margin increased by 2.2 points to 41.7%, excluding currency, as detailed in Schedule 8, or by 2.4 points to 41.7%, on an organic basis, as detailed in Schedule 9.

Fourth-Quarter


Financial Summary - Quarters Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2020		2019		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 7,444		$ 7,713		(3.5)	%	(3.5)	%	(269)	—	128	(385)	(12)
Cost of Sales	(2,572)		(2,778)		7.4	%	8.0	%	206	(15)	—	146	75
Marketing, Administration and Research Costs (1)	(1,949)		(2,413)		19.2	%	20.7	%	464	(35)	—	—	499
Amortization of Intangibles	(18)		(16)		(12.5)	%	(25.0)	%	(2)	2	—	—	(4)
Operating Income	$ 2,905		$ 2,506		15.9	%	17.8	%	399	(48)	128	(239)	558
Asset Impairment & Exit Costs (2)	(78)		(357)		78.2	%	78.2	%	279	—	—	—	279


Brazil Indirect Tax Credit (2)	119		—		—	%	—	%	119	—	—	—	119
Adjusted Operating Income	$ 2,864		$ 2,863		—	%	1.7	%	1	(48)	128	(239)	160

Adjusted Operating Income Margin	38.5	%	37.1	%	1.4pp		2.0	pp

(1) Favorable Cost/Other variance includes the 2019 and 2020 asset impairment and exit costs and the 2020 Brazil indirect tax credit
(2) Included in Marketing, Administration and Research Costs above.
Note: Net Revenues include revenues from shipments of Platform 1 devices, heated tobacco units and accessories to Altria Group, Inc., commencing in the third quarter of 2019, for sale under license in the United States.

Net revenues decreased by 3.5%, on an organic basis, mainly reflecting: unfavorable volume/mix, primarily due to lower cigarette volume (mainly in Indonesia, Italy, Japan, Mexico, the Philippines, PMI Duty Free, Poland and Russia), partially offset by higher heated tobacco unit volume (notably in EE, the EU and Japan, partly offset by PMI Duty Free); partially offset by a favorable pricing variance (notably driven by Germany, Japan, the Philippines and Russia, partly offset by France and Indonesia).

Operating income increased by 17.8%, excluding currency, notably reflecting a favorable comparison, shown in "Cost/Other," of net favorable items recorded in the fourth quarter of 2020 of $41 million related to the Brazil indirect tax credit and asset impairment and exit costs (associated with organizational design optimization), to charges recorded in the same period of 2019 related to asset impairment and exit costs associated with plant

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closures in Argentina and Germany.

Adjusted operating income increased by 1.7%, on an organic basis, primarily reflecting: a favorable pricing variance; lower marketing, administration and research costs (partly driven by cost efficiencies); and lower manufacturing costs (driven by productivity gains related to reduced-risk and combustible products); partially offset by unfavorable volume/mix, due to the same factors as for net revenues noted above.

Adjusted operating income margin increased by 2.0 points to 39.1%, on an organic basis, as detailed in Schedule 8.

EUROPEAN UNION REGION

Full-Year


Financial Summary - Years Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2020		2019		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 10,702		$ 9,817		9.0	%	8.8	%	885	21	187	677	—

Operating Income	$ 5,098		$ 3,970		28.4	%	29.0	%	1,128	(24)	187	663	302
Asset Impairment & Exit Costs (1)	(57)		(342)		83.3	%	83.3	%	285	—	—	—	285
Adjusted Operating Income	$ 5,155		$ 4,312		19.6	%	20.1	%	843	(24)	187	663	17

Adjusted Operating Income Margin	48.2	%	43.9	%	4.3pp		4.6pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues increased by 8.8%, on an organic basis, reflecting: favorable volume/mix, mainly driven by higher heated tobacco unit volume across the Region (notably in the Czech Republic, Germany, Hungary, Italy and Poland), partly offset by lower cigarette volume (notably in the Czech Republic, Italy, Poland and Spain, partly offset by Germany) and lower cigarette mix (mainly in Germany); and a favorable pricing variance (driven by higher combustible pricing, notably in Germany, partly offset by lower heated tobacco unit and IQOS device pricing).

Operating income increased by 29.0%, excluding currency, notably reflecting a favorable comparison, shown in "Cost/Other," of asset impairment and exit costs recorded in 2020 associated with organizational design optimization, to those recorded in 2019 associated with a plant closure in Germany.

Adjusted operating income increased by 20.1%, on an organic basis, primarily reflecting: favorable volume/mix, mainly driven by the same factors as for net revenues noted above; a favorable pricing variance; and lower manufacturing costs (notably in Germany); partly offset by higher marketing, administration and research costs (mainly related to increased investments behind reduced-risk products, notably in Germany and Poland).

Adjusted operating income margin increased by 4.6 points to 48.5%, on an organic basis, as detailed in Schedule 8.

- 11 -

Fourth-Quarter


Financial Summary - Quarters Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2020		2019		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 2,742		$ 2,436		12.6	%	6.4	%	306	151	45	110	—

Operating Income	$ 1,174		$ 624		88.1	%	74.8	%	550	83	45	129	293
Asset Impairment & Exit Costs (1)	(30)		(342)		91.2	%	91.2	%	312	—	—	—	312
Adjusted Operating Income	$ 1,204		$ 966		24.6	%	16.0	%	238	83	45	129	(19)

Adjusted Operating Income Margin	43.9	%	39.7	%	4.2pp		3.6pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues increased by 6.4%, 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 Italy and Poland); and a favorable pricing variance (driven by higher combustible pricing, notably in Germany, partly offset by France).

Operating income increased by 74.8%, excluding currency, mainly reflecting a favorable comparison, shown in "Cost/Other," of asset impairment and exit costs recorded in the fourth quarter of 2020 associated with organizational design optimization, to those recorded in the same period of 2019 associated with a plant closure in Germany.

Adjusted operating income increased by 16.0%, on an organic basis, primarily reflecting: favorable volume/mix, driven by the same factors as for net revenues noted above; and a favorable pricing variance; partly offset by higher manufacturing costs (notably in Italy, partly offset by Germany).

Adjusted operating income margin increased by 3.6 points to 43.3%, on an organic basis, as detailed in Schedule 8.

- 12 -

Total Market, PMI Shipment & Market Share Commentaries


European Union Key Data	Fourth-Quarter						Full-Year
					Change						Change
	2020		2019		% / pp		2020		2019		% / pp
Total Market (billion units)	115.2		119.0		(3.2)	%	472.7		482.8		(2.1)	%

PMI Shipment Volume (million units)
Cigarettes	37,278		41,226		(9.6)	%	163,420		174,319		(6.3)	%
Heated Tobacco Units	5,773		3,759		53.6	%	19,842		12,569		57.9	%
Total EU	43,051		44,985		(4.3)	%	183,262		186,888		(1.9)	%

PMI Market Share
Marlboro	17.1	%	17.8	%	(0.7)		17.5	%	18.0	%	(0.5)
L&M	5.9	%	6.5	%	(0.6)		6.2	%	6.7	%	(0.5)
Chesterfield	5.3	%	5.6	%	(0.3)		5.5	%	5.8	%	(0.3)
Philip Morris	2.2	%	2.6	%	(0.4)		2.4	%	2.7	%	(0.3)
HEETS	5.0	%	3.2	%	1.8		4.2	%	2.5	%	1.7
Others	3.1	%	3.0	%	0.1		3.1	%	3.1	%	—
Total EU	38.6	%	38.7	%	(0.1)		38.9	%	38.8	%	0.1
Note: HEETS includes HEETS Dimensions.

Full-Year

The estimated total market in the EU decreased by 2.1% to 472.7 billion units, notably due to:

•Czech Republic, down by 10.9%, primarily reflecting lower border sales due to lockdown measures;

•France, down by 3.6%, mainly reflecting the impact of significant excise tax-driven price increases, partly offset by the pandemic-related impact of lower cross-border (non-domestic) purchases and a lower estimated prevalence of illicit trade due to border restrictions; and

•Spain, down by 7.8%, primarily reflecting lower in-bound tourism and border sales due to the pandemic;

partly offset by

•Germany, up by 1.9%, notably reflecting the pandemic-related impact of lower cross-border (non-domestic) purchases and reduced out-bound tourism, partly offset by the impact of retail price increases in the first quarter of 2020 and adult smoker out-switching to other combustible tobacco products.

PMI's total shipment volume decreased by 1.9% to 183.3 billion units, reflecting:

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

partly offset by

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

PMI's Regional market share increased by 0.1 point to 38.9%, with gains in Germany and Italy, partly offset by a decline in Poland.

- 13 -

Fourth-Quarter

The estimated total market in the EU decreased by 3.2% to 115.2 billion units, notably driven by:

•Czech Republic, down by 20.9%, mainly reflecting the same factor as for the full year;

•Denmark, down by 27.0%, or by 12.9% excluding the net unfavorable impact of estimated trade inventory movements, mainly reflecting the impact of excise tax-driven price increases; and

•Spain, down by 7.7%, mainly reflecting the same factors as for the full year.

PMI's total shipment volume decreased by 4.3% to 43.1 billion units, reflecting:

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

partly offset by

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

PMI's Regional market share decreased by 0.1 point to 38.6%, with declines in France and Poland, largely offset by gains in Italy and Spain.

EASTERN EUROPE REGION

Full-Year


Financial Summary - Years Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2020		2019		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 3,378		$ 3,282		2.9	%	10.9	%	96	(263)	162	197	—

Operating Income	$ 871		$ 547		59.2	%	+100%		324	(299)	162	146	315
Asset Impairment & Exit Costs (1)	(15)		—		—	%	—	%	(15)	—	—	—	(15)
Russia Excise and VAT Audit Charge (1)	—		(374)		+100%		+100%		374	—	—	—	374

Adjusted Operating Income	$ 886		$ 921		(3.8)	%	28.7	%	(35)	(299)	162	146	(44)

Adjusted Operating Income Margin	26.2	%	28.1	%	(1.9)pp		4.4pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues increased by 10.9%, on an organic basis, reflecting: favorable volume/mix, predominantly driven by higher heated tobacco unit volume across the Region (notably in Russia and Ukraine) and higher heated tobacco unit mix (mainly in Russia), partly offset by unfavorable cigarette volume (primarily in Russia and Ukraine, partially offset by Israel) and unfavorable cigarette mix (mainly in Russia); and a favorable pricing variance, driven by higher combustible pricing (primarily in Russia and Ukraine), partly offset by lower IQOS device pricing (mainly in Russia).

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

- 14 -

Adjusted operating income increased by 28.7%, on an organic basis, reflecting: a favorable pricing variance; favorable volume/mix, driven by the same factors as for net revenues noted above; and lower manufacturing costs; partly offset by higher marketing, administration and research costs (partly related to increased investments behind reduced-risk products, notably in Russia and Ukraine).

Adjusted operating income margin increased by 4.4 points to 32.5%, on an organic basis, as detailed in Schedule 8.

Fourth-Quarter


Financial Summary - Quarters Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2020		2019		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 908		$ 982		(7.5)	%	4.5	%	(74)	(118)	57	(13)	—

Operating Income	$ 261		$ 263		(0.8)	%	33.8	%	(2)	(91)	57	(10)	42
Asset Impairment & Exit Costs (1)	(8)		—		—	%	—	%	(8)	—	—	—	(8)

Adjusted Operating Income	$ 269		$ 263		2.3	%	36.9	%	6	(91)	57	(10)	50

Adjusted Operating Income Margin	29.6	%	26.8	%	2.8pp		8.3pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues increased by 4.5%, on an organic basis, mainly reflecting: a favorable pricing variance, driven by higher combustible pricing (predominantly in Russia); partly offset by unfavorable volume/mix, mainly due to unfavorable cigarette volume/mix in Russia, largely offset by higher heated tobacco unit volume across the Region (primarily in Russia and Ukraine).

Operating income increased by 33.8%, excluding currency, primarily reflecting a favorable pricing variance; and lower manufacturing costs (mainly in Russia); partly offset by unfavorable volume/mix, reflecting the same factors as for net revenues noted above.

Adjusted operating income increased by 36.9%, on an organic basis. Adjusted operating income margin increased by 8.3 points to 35.1%, on the same basis, as detailed in Schedule 8.

Total Market, PMI Shipment & Market Share Commentaries


PMI Shipment Volume	Fourth-Quarter				Full-Year
(million units)	2020	2019	Change		2020	2019	Change
Cigarettes	22,725	25,865	(12.1)	%	93,462	100,644	(7.1)	%
Heated Tobacco Units	6,524	5,240	24.5	%	20,898	13,453	55.3	%
Total Eastern Europe	29,249	31,105	(6.0)	%	114,360	114,097	0.2	%

Full-Year

The estimated total market in Eastern Europe decreased by 4.6% to 379.4 billion units, notably due to:

•Russia, down by 3.3%, primarily reflecting the impact of price increases, partly offset by a lower estimated prevalence of illicit trade due to pandemic-related border restrictions; and

- 15 -

•Ukraine, down by 10.2%, mainly reflecting the impact of excise tax-driven price increases.

PMI's Regional market share increased by 1.8 points to 30.5%.

PMI's total shipment volume increased by 0.2% to 114.4 billion units, mainly due to:

•Russia, up by 1.8%, or by 3.9% excluding the net unfavorable impact of estimated distributor inventory movements, primarily reflecting a higher market share, driven by heated tobacco units, partly offset by the lower total market;

partly offset by

•Ukraine, down by 4.3%, mainly due to the lower total market, partly offset by a higher market share driven by heated tobacco units.

Fourth-Quarter

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

•Russia, down by 4.6%, primarily reflecting the same factors as in the full year; and

•Ukraine, down by 11.9%, mainly reflecting the same factor as in the full year.

PMI's total shipment volume decreased by 6.0% to 29.2 billion units, notably due to:

•Russia, down by 8.2%. Excluding the net unfavorable impact of estimated distributor inventory movements of 0.7 billion cigarettes and 0.6 billion heated tobacco units, PMI's in-market sales decreased by 1.4%, mainly reflecting the lower total market, partly offset by a higher market share driven by heated tobacco units.

MIDDLE EAST & AFRICA REGION

Full-Year


Financial Summary - Years Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2020		2019		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 3,088		$ 4,042		(23.6)	%	(21.7)	%	(954)	(77)	186	(1,001)	(62)

Operating Income	$ 1,026		$ 1,684		(39.1)	%	(35.2)	%	(658)	(65)	186	(784)	5
Asset Impairment & Exit Costs (1)	(19)		—		—	%	—	%	(19)	—	—	—	(19)
Adjusted Operating Income	$ 1,045		$ 1,684		(37.9)	%	(34.1)	%	(639)	(65)	186	(784)	24

Adjusted Operating Income Margin	33.8	%	41.7	%	(7.9)pp		(6.6)pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues decreased by 21.7%, on an organic basis, reflecting: unfavorable volume/mix, mainly due to lower cigarette volume, heated tobacco unit volume and IQOS device volume in PMI Duty Free, as well as lower cigarette volume in South Africa and Turkey; and lower fees for certain distribution rights billed to customers in certain markets, shown in "Cost/Other"; partially offset by a favorable pricing variance, driven by combustible

- 16 -

pricing (mainly in the GCC, particularly Saudi Arabia, as well as North Africa and PMI Duty Free, partly offset by Turkey).

Operating income decreased by 35.2%, excluding currency, mainly reflecting: unfavorable volume/mix, predominantly due to lower cigarette and heated tobacco unit volume in PMI Duty Free; and lower fees for certain distribution rights, as noted above for net revenues; partially offset by a favorable pricing variance; and lower marketing, administration and research costs.

Adjusted operating income decreased by 34.1% on an organic basis. Adjusted operating income margin decreased by 6.6 points to 35.1%, on the same basis, as detailed in Schedule 8.

Fourth-Quarter


Financial Summary - Quarters Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2020		2019		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 740		$ 984		(24.8)	%	(21.6)	%	(244)	(31)	63	(265)	(11)

Operating Income	$ 207		$ 380		(45.5)	%	(36.1)	%	(173)	(36)	63	(219)	19
Asset Impairment & Exit Costs (1)	(10)		—		—	%	—	%	(10)	—	—	—	(10)
Adjusted Operating Income	$ 217		$ 380		(42.9)	%	(33.4)	%	(163)	(36)	63	(219)	29

Adjusted Operating Income Margin	29.3	%	38.6	%	(9.3)pp		(5.8)pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues decreased by 21.6%, on an organic basis, primarily reflecting: unfavorable volume/mix, mainly due to lower cigarette and heated tobacco unit volume in PMI Duty Free; partly offset by a favorable pricing variance, notably driven by combustible pricing in North Africa.

Operating income decreased by 36.1%, excluding currency, mainly reflecting: unfavorable volume/mix, due to the same factors as for net revenues noted above; partly offset by a favorable pricing variance; lower manufacturing costs; and lower marketing, administration and research costs.

Adjusted operating income decreased by 33.4%, on an organic basis. Adjusted operating income margin decreased by 5.8 points to 32.8%, on the same basis, as detailed in Schedule 8.

Total Market, PMI Shipment & Market Share Commentaries


PMI Shipment Volume	Fourth-Quarter				Full-Year
(million units)	2020	2019	Change		2020	2019	Change
Cigarettes	29,912	32,611	(8.3)	%	117,999	134,568	(12.3)	%
Heated Tobacco Units	188	593	(68.3)	%	1,022	2,654	(61.5)	%
Total Middle East & Africa	30,100	33,204	(9.3)	%	119,021	137,222	(13.3)	%

Full-Year

The estimated total market in the Middle East & Africa decreased by 8.0% to 546.4 billion units, mainly due to:

- 17 -

•International Duty Free, down by 62.0%, reflecting the impact of government travel restrictions and reduced passenger traffic due to the pandemic;

•South Africa, down by 35.5%, primarily reflecting the impact of the pandemic-related ban on all tobacco sales from March 27, 2020, through August 17, 2020;

•Turkey, down by 4.2%, mainly reflecting the impact of lockdown measures on adult smoker average daily consumption, as well as a higher prevalence of illicit trade related to cut tobacco, particularly during the first-half of 2020, following significant industry-wide cigarette price increases in 2019; and

•The UAE, down by 38.1%, primarily reflecting the adverse impact on low-price brands from the implementation of a minimum excise tax and digital tax stamps in the second half of 2019.

PMI's Regional market share decreased by 1.4 points to 22.0%.

PMI's total shipment volume decreased by 13.3% to 119.0 billion units, notably due to:

•PMI Duty Free, down by 70.8%, or by 58.8% excluding the net unfavorable impact of estimated distributor inventory movements (principally due to cigarettes), mainly reflecting the lower total market; and

•Turkey, down by 8.5%, mainly reflecting the lower total market and a lower market share, notably due to adult smoker down-trading following the 2019 price increases.

Fourth-Quarter

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

•International Duty Free, down by 66.6%, reflecting the same factors as for the full year;

partly offset by

•Egypt, up by 8.4%, primarily reflecting stock replenishment following pandemic-related supply-chain shortages involving competitors' products; and

•Turkey, up by 7.7%, mainly reflecting a lower prevalence of illicit trade, due mainly to: pandemic-related border restrictions and the impact of a favorable comparison versus a relatively high prevalence of illicit trade related to cut tobacco in the fourth quarter of 2019 (which continued into the first half of 2020, as noted for the full year); partly offset by the impact of lockdown measures on adult smoker average daily consumption.

PMI's total shipment volume decreased by 9.3% to 30.1 billion units, notably due to:

•PMI Duty Free, down by 77.1%, or by 62.7% excluding the net unfavorable impact of estimated distributor inventory movements (due to cigarettes), mainly reflecting the lower total market;

partly offset by

•Turkey, up by 7.3%, primarily reflecting the higher total market.

- 18 -

SOUTH & SOUTHEAST ASIA REGION

Full-Year


Financial Summary - Years Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2020		2019		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 4,396		$ 5,094		(13.7)	%	(13.3)	%	(698)	(19)	(44)	(635)	—

Operating Income	$ 1,709		$ 2,163		(21.0)	%	(21.1)	%	(454)	2	(44)	(457)	45
Asset Impairment & Exit Costs (1)	(23)		(20)		(15.0)	%	(15.0)	%	(3)	—	—	—	(3)
Adjusted Operating Income	$ 1,732		$ 2,183		(20.7)	%	(20.8)	%	(451)	2	(44)	(457)	48

Adjusted Operating Income Margin	39.4	%	42.9	%	(3.5)pp		(3.7)pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues decreased by 13.3%, on an organic basis, reflecting: unfavorable volume/mix, primarily due to lower cigarette volume in Indonesia and the Philippines, partly offset by favorable cigarette mix in Indonesia; and an unfavorable pricing variance, due to combustible pricing in Indonesia, partly offset by the Philippines.

Operating income decreased by 21.1%, excluding currency, mainly reflecting: unfavorable volume/mix, due to the same factors as for net revenues noted above; and an unfavorable pricing variance; partly offset by lower marketing, administration and research costs (primarily in Indonesia).

Adjusted operating income decreased by 20.8%, on an organic basis. Adjusted operating income margin decreased by 3.7 points to 39.2%, on the same basis, as detailed in Schedule 8.

Fourth-Quarter


Financial Summary - Quarters Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2020		2019		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 1,185		$ 1,487		(20.3)	%	(20.6)	%	(302)	5	(98)	(209)	—

Operating Income	$ 419		$ 692		(39.5)	%	(39.7)	%	(273)	2	(98)	(161)	(16)
Asset Impairment & Exit Costs (1)	(12)		—		—	%	—	%	(12)	—	—	—	(12)
Adjusted Operating Income	$ 431		$ 692		(37.7)	%	(38.0)	%	(261)	2	(98)	(161)	(4)

Adjusted Operating Income Margin	36.4	%	46.5	%	(10.1)pp		(10.1)pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues decreased by 20.6%, on an organic basis, reflecting: unfavorable volume/mix, principally due to lower cigarette volume in Indonesia and the Philippines, partly offset by favorable cigarette mix in Indonesia; and an unfavorable pricing variance, due to Indonesia, partially offset by the Philippines.

Operating income decreased by 39.7%, excluding currency, primarily reflecting: unfavorable volume/mix, due to the same factors as for net revenues noted above; and an unfavorable pricing variance.

- 19 -

Adjusted operating income decreased by 38.0%, on an organic basis. Adjusted operating income margin decreased by 10.1 points to 36.4%, on the same basis, as detailed in Schedule 8.

Total Market, PMI Shipment & Market Share Commentaries


PMI Shipment Volume	Fourth-Quarter				Full-Year
(million units)	2020	2019	Change		2020	2019	Change
Cigarettes	36,609	44,704	(18.1)	%	144,788	174,934	(17.2)	%
Heated Tobacco Units	26	—	—	%	36	—	—	%
Total South & Southeast Asia	36,635	44,704	(18.0)	%	144,824	174,934	(17.2)	%

Full-Year

The estimated total market in South & Southeast Asia decreased by 8.7% to 672.3 billion units, notably due to:

•India, down by 17.9%, mainly reflecting the impact of lockdown restrictions on the movement of certain products, including tobacco;

•Indonesia, down by 9.6%, mainly reflecting the impact of excise tax-driven price increases and pandemic-related measures on adult smoker average daily consumption;

•Pakistan, down by 10.3%, mainly reflecting the impact of excise tax-driven price increases in June 2019 and price increases on PMI value brands in February 2020; and

•the Philippines, down by 12.0%, mainly reflecting the impact of pandemic-related quarantines, as well as industry-wide price increases in the third quarter of 2019 and the fourth quarter of 2020.

PMI's Regional market share decreased by 2.2 points to 21.5%.

PMI's total shipment volume decreased by 17.2% to 144.8 billion units, notably due to:

•Indonesia, down by 19.3%, reflecting the lower total market, as well as a lower market share, mainly due to: adult smoker down-trading to the tax-advantaged 'below tier one' segment, the impact of elevated price gaps in the tier one segment (partly due to the delay in minimum price enforcement), and the disproportionate impact of stricter public mobility restrictions in urban areas, where PMI’s share is higher;

•Pakistan, down by 20.0%, mainly reflecting the lower total market and a lower market share, mainly due to low-price Morven; and

•the Philippines, down by 16.1%, mainly reflecting the lower total market and a lower market share, primarily for mid-price Fortune due to the impact of price increases in the third quarter of 2019 and the fourth quarter of 2020.

Fourth-Quarter

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

•India, down by 10.5%, primarily reflecting the same factor as for the full year;

•Indonesia, down by 10.0%, or by 6.1% excluding the net unfavorable impact of estimated trade inventory movements, mainly reflecting the same factors as for the full year; and

•the Philippines, down by 15.6%, or by 21.8% excluding the net favorable impact of estimated trade inventory movements, primarily reflecting the impact of industry-wide price increases in the quarter.

- 20 -

PMI's total shipment volume decreased by 18.0% to 36.6 billion units, notably due to:

•Indonesia, down by 19.7%, reflecting the lower total market, as well as a lower market share, mainly due to the same factors as in the full year; and

•the Philippines, down by 23.4%, mainly reflecting the lower total market and a lower market share for mid-price Fortune due to the impact of price increases in the fourth quarter of 2020.

EAST ASIA & AUSTRALIA REGION

Full-Year


Financial Summary - Years Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2020		2019		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 5,429		$ 5,364		1.2	%	0.6	%	65	33	168	(136)	—

Operating Income	$ 2,400		$ 1,932		24.2	%	23.1	%	468	21	168	(68)	347
Asset Impairment & Exit Costs (1)	(26)		—		—	%	—	%	(26)	—	—	—	(26)
Adjusted Operating Income	$ 2,426		$ 1,932		25.6	%	24.5	%	494	21	168	(68)	373

Adjusted Operating Income Margin	44.7	%	36.0	%	8.7pp		8.6pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues increased by 0.6%, on an organic basis, reflecting: a favorable pricing variance, mainly driven by higher heated tobacco and combustible pricing in Japan, partly offset by lower IQOS device pricing in Japan; and unfavorable volume/mix, mainly due to lower cigarette volume (primarily in Japan), unfavorable cigarette mix in Australia, lower device volume/mix in Japan and lower heated tobacco unit mix in Japan, partly offset by higher heated tobacco unit volume in Japan.

Operating income increased by 23.1%, excluding currency, mainly reflecting: lower marketing, administration and research costs (notably in Japan); lower manufacturing costs (mainly related to Japan and Korea); and a favorable pricing variance; partly offset by unfavorable volume/mix, mainly due to lower cigarette volume (primarily in Japan), unfavorable cigarette mix in Australia and lower heated tobacco unit mix in Japan, partly offset by higher heated tobacco unit volume in Japan.

Adjusted operating income increased by 24.5%, on an organic basis. Adjusted operating income margin increased by 8.6 points to 44.6%, on the same basis, as detailed in Schedule 8.

- 21 -

Fourth-Quarter


Financial Summary - Quarters Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2020		2019		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 1,384		$ 1,270		9.0	%	6.1	%	114	36	33	45	—

Operating Income	$ 608		$ 412		47.6	%	43.0	%	196	19	33	66	78
Asset Impairment & Exit Costs (1)	(13)		—		—	%	—	%	(13)	—	—	—	(13)
Adjusted Operating Income	$ 621		$ 412		50.7	%	46.1	%	209	19	33	66	91

Adjusted Operating Income Margin	44.9	%	32.4	%	12.5pp		12.3pp
(1) Included in marketing, administration and research costs at the consolidated operating income level.

Net revenues increased by 6.1%, on an organic basis, reflecting: favorable volume/mix, mainly due to higher heated tobacco unit volume in Japan, partly offset by lower cigarette volume in Japan; and a favorable pricing variance, primarily driven by higher heated tobacco and combustible pricing in Japan, partly offset by lower IQOS device pricing in Japan.

Operating income increased by 43.0%, excluding currency, mainly reflecting: favorable volume/mix, due to the same factors as for net revenues noted above; lower marketing, administration and research costs (related to combustible and reduced-risk products); lower manufacturing costs (primarily related to Japan); and a favorable pricing variance.

Adjusted operating income increased by 46.1%, on an organic basis. Adjusted operating income margin increased by 12.3 points to 44.7%, on the same basis, as detailed in Schedule 8.

Total Market, PMI Shipment & Market Share Commentaries


PMI Shipment Volume	Fourth-Quarter				Full-Year
(million units)	2020	2019	Change		2020	2019	Change
Cigarettes	9,946	11,301	(12.0)	%	45,100	49,951	(9.7)	%
Heated Tobacco Units	9,063	7,424	22.1	%	33,862	30,677	10.4	%
Total East Asia & Australia	19,009	18,725	1.5	%	78,962	80,628	(2.1)	%

Full-Year

The estimated total market in East Asia & Australia, excluding China, decreased by 3.6% to 288.6 billion units, notably due to:

•Australia, down by 8.8%, primarily reflecting the impact of excise tax-driven price increases; and

•Japan, down by 9.4%, mainly reflecting the impact of excise tax-driven price increases, reduced adult smoker consumption occasions due to pandemic-related measures, as well as adult smoker out-switching from cigarettes to the cigarillo category;

partly offset by

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•Korea, up by 4.4%, mainly reflecting the shift of adult smokers from duty-free to domestic purchases due to the pandemic-related decline in international travel; and

•Taiwan, up by 5.4%, primarily driven by the same factor as for Korea.

PMI's Regional market share, excluding China, increased by 0.3 points to 27.2%.

PMI's total shipment volume decreased by 2.1% to 79.0 billion units, notably in:

•Japan, down by 2.4%, mainly due to the lower total market, partly offset by a higher market share driven by heated tobacco units; and

•Korea, down by 4.3%, primarily due to a lower market share, mainly reflecting the unfavorable impact of the growth of the cigarette new taste dimension segment, in which PMI has a relatively low share, partly offset by the higher total market.

Fourth-Quarter

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

•Japan, down by 16.3%, or by 9.4% excluding the net unfavorable impact of estimated trade inventory movements, primarily due to the impact of excise tax-driven price increases and adult smoker out-switching from cigarettes to the cigarillo category;

partly offset by

•Taiwan, up by 8.2%, mainly reflecting the shift of adult smokers from duty-free to domestic purchases due to the pandemic-related decline in international travel.

PMI's total shipment volume increased by 1.5% to 19.0 billion units, notably in:

•Japan, up by 3.4%. Excluding the net favorable impact of estimated distributor inventory movements of 1.2 billion heated tobacco units and 0.3 billion cigarettes, PMI's in-market sales decreased by 8.4%, mainly due to the lower total market, partly offset by a higher market share driven by heated tobacco units.

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LATIN AMERICA & CANADA REGION

Full-Year


Financial Summary - Years Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2020		2019		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other(1)
(in millions)
Net Revenues	$ 1,701		$ 2,206		(22.9)	%	(15.5)	%	(505)	(164)	135	(285)	(191)

Operating Income	$ 564		$ 235		+100%		+100%		329	(110)	135	(219)	523
Asset Impairment & Exit Costs (2)	(9)		(60)		85.0	%	85.0	%	51	—	—	—	51
Canadian Tobacco Litigation-Related Expense (2)	—		(194)		+100%		+100%		194	—	—	—	194
Loss on Deconsolidation of RBH (2)	—		(239)		+100%		+100%		239	—	—	—	239
Brazil Indirect Tax Credit (2)	119		—		—	%	—	%	119	—	—	—	119
Adjusted Operating Income	$ 454		$ 728		(37.6)	%	(22.5)	%	(274)	(110)	135	(219)	(80)

Adjusted Operating Income Margin	26.7	%	33.0	%	(6.3)pp		(2.8)pp
(1) Cost/Other variance includes the impact of the RBH deconsolidation.
(2) Included in marketing, administration and research costs at the consolidated operating income level.
Note: Net Revenues include revenues from shipments of Platform 1 devices, heated tobacco units and accessories to Altria Group, Inc., commencing in the third quarter of 2019, for sale under license in the United States.

Net revenues decreased by 15.5%, excluding currency, reflecting: unfavorable volume/mix, due to lower cigarette volume, mainly in Argentina and Mexico, partly offset by Brazil; and the unfavorable impact of the deconsolidation of RBH shown in "Cost/Other"; partially offset by a favorable pricing variance, driven by higher combustible pricing across the Region (notably in Brazil and Mexico). On an organic basis, net revenues decreased by 7.9%, as detailed in Schedule 10.

Operating income increased by over 100%, excluding currency, notably reflecting a favorable comparison, shown in "Cost/Other," of net favorable items recorded in 2020 of $110 million related to the Brazil indirect tax credit and asset impairment and exit costs (associated with organizational design optimization), and charges recorded in 2019 of $493 million related to: asset impairment and exit costs associated with plant closures in Argentina and Colombia, the loss on the deconsolidation of RBH, and the Canadian tobacco litigation-related expense.

Adjusted operating income decreased by 22.5%, excluding currency, mainly reflecting: unfavorable volume/mix, due to the same factors as for net revenues noted above; and the unfavorable impact of the deconsolidation of RBH, included in "Cost/Other"; partly offset by a favorable pricing variance; and lower marketing, administration and research costs (notably in Argentina). On an organic basis, adjusted operating income decreased by 6.8%, as detailed in Schedule 10.

Adjusted operating income margin decreased by 2.8 points to 30.2%, excluding currency, as detailed in Schedule 8, or increased by 0.4 points to 30.1%, on an organic basis, as detailed in Schedule 10.

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Fourth-Quarter


Financial Summary - Quarters Ended December 31,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2020		2019		Total		Excl. Curr.		Total	Cur- rency	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 485		$ 554		(12.5)	%	(4.7)	%	(69)	(43)	28	(53)	(1)

Operating Income	$ 236		$ 135		74.8	%	93.3	%	101	(25)	28	(44)	142
Asset Impairment & Exit Costs (1)	(5)		(15)		66.7	%	66.7	%	10	—	—	—	10


Brazil Indirect Tax Credit (1)	119		—		—	%	—	%	119	—	—	—	119
Adjusted Operating Income	$ 122		$ 150		(18.7)	%	(2.0)	%	(28)	(25)	28	(44)	13

Adjusted Operating Income Margin	25.2	%	27.1	%	(1.9)pp		0.7pp

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

Net revenues decreased by 4.7%, on an organic basis, mainly reflecting: unfavorable volume/mix, notably due to lower cigarette volume in Mexico, partly offset by Brazil; partially offset by a favorable pricing variance, driven by higher combustible pricing in most markets across the Region.

Operating income increased by 93.3%, excluding currency, primarily reflecting a favorable comparison, shown in "Cost/Other," due mainly to the Brazil indirect tax credit recorded in the fourth quarter of 2020.

Adjusted operating income decreased by 2.0%, on an organic basis, primarily reflecting: unfavorable volume/mix (due to the same factors as for net revenues noted above); partly offset by a favorable pricing variance.

Adjusted operating income margin increased by 0.7 points to 27.8%, on an organic basis, as detailed in Schedule 8.

Total Market, PMI Shipment & Market Share Commentaries


PMI Shipment Volume	Fourth-Quarter				Full-Year
(million units)	2020	2019	Change		2020	2019	Change
Cigarettes	18,207	19,387	(6.1)	%	63,749	72,293	(11.8)	%
Heated Tobacco Units	135	97	39.2	%	451	299	50.8	%
Total Latin America & Canada	18,342	19,484	(5.9)	%	64,200	72,592	(11.6)	%

Full-Year

The estimated total market in Latin America & Canada decreased by 2.8% to 189.0 billion units, notably due to:

•Colombia, down by 14.2%, primarily reflecting reduced product availability (mainly in the second quarter of 2020) and lower adult smoker average daily consumption due to the impact of pandemic-related mobility restrictions; and

•Mexico, down by 13.6%, mainly due to the impact of excise tax-driven price increases in January 2020 and pandemic-related measures on adult smoker average daily consumption;

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partly offset by

•Brazil, up by 13.4%, 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.

PMI's Regional market share decreased by 3.0 points to 33.9%.

PMI's total shipment volume decreased by 11.6% to 64.2 billion units (or by 10.3% on a like-for-like basis), notably due to:

•Argentina, down by 12.2%, primarily reflecting a lower market share, mainly due to adult smoker down-trading to ultra-low-price brands produced by local manufacturers, as well as the impact of retail out-of-stock of PMI brands during the second quarter;

•Canada, down by 18.6%, due to the unfavorable impact of the deconsolidation of RBH;

•Colombia, down by 14.2%, primarily reflecting the lower total market; and

•Mexico, down by 18.0%, mainly due to the lower total market and a lower market share, primarily reflecting: adult smoker down-trading following the January 2020 price increases and the impact of the pandemic on adult smoker consumption patterns;

partly offset by

•Brazil, up by 13.2%, mainly reflecting the higher total market.

Fourth-Quarter

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

•Mexico, down by 15.9%, primarily reflecting the same factors as for the full year;

partly offset by

•Brazil, up by 16.6%, primarily reflecting the same factor as for the full year.

PMI's total shipment volume decreased by 5.9% to 18.3 billion units, mainly due to:

•Mexico, down by 18.3%, mainly reflecting the lower total market and a lower market share for cigarettes, due to the same factors as for the full year;

partly offset by

•Brazil, up by 21.6%, mainly reflecting the higher total market.

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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 December 31, 2020, IQOS is available for sale in 64 markets in key cities or nationwide, and PMI estimates that approximately 12.7 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 and quality of tobacco and other agricultural products and raw materials; and the integrity of its information systems and effectiveness of its data privacy policies. PMI's future profitability may also be adversely affected should it be unsuccessful in its attempts to produce and commercialize reduced-risk products or if regulation or taxation do not differentiate between such products and cigarettes; if it is unable to successfully introduce new products, promote brand equity, enter new markets or improve its margins through increased prices and productivity gains; if it is unable to expand its brand portfolio internally or through acquisitions and the development of strategic business relationships; or if it is

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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.

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

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

PMI is further subject to other risks detailed from time to time in its publicly filed documents, including the Form 10-Q for the quarter ended September 30, 2020. PMI cautions that the foregoing list of important factors is not a complete discussion of all potential risks and uncertainties. PMI does not undertake to update any forward-looking statement that it may make from time to time, except in the normal course of its public disclosure obligations.

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Key Terms, Definitions and Explanatory Notes

General

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

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

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

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

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

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

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

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

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

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

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

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

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

Financial

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

•Net revenues related to RRPs represent the sale of heated tobacco units, 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.

•"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

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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, the Canadian tobacco litigation-related expense and the charge related to the deconsolidation of RBH in Canada); and amortization of intangibles. “Cost/Other” also includes the currency-neutral net revenue variance, unrelated to volume/mix and price components, attributable to fees for certain distribution rights billed to customers in certain markets in the ME&A Region, as well as the impact of the deconsolidation in RBH.

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

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

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

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

•Management reviews net revenues, 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, including pro forma measures, will provide useful insight into underlying business trends and results, and will provide a more meaningful performance comparison for the period during which RBH remains under CCAA protection. For PMI's 2018 pro forma adjusted diluted EPS by quarter and year-to-date, see Schedule 3 in PMI's fourth-quarter 2019 earnings release.

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

•Non-GAAP measures used in this release should neither be considered in isolation nor as a substitute for the financial measures prepared in accordance with U.S. GAAP. For a reconciliation of non-GAAP measures to the most directly comparable U.S. GAAP measures, see the relevant schedules provided with this press release.

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

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

Reduced-Risk Products

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

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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.

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

Quarters Ended December 31,
Market	Total Market, bio units			PMI Shipments, bio units									PMI Market Share, % (1)
				Total			Cigarette			HTU			Total			HTU
	2020	2019	% Change	2020	2019	% Change	2020	2019	% Change	2020	2019	% Change	2020	2019	pp Change	2020	2019	pp Change

Total	651.1	686.4	(5.1)	176.4	192.2	(8.2)	154.7	175.1	(11.7)	21.7	17.1	26.9	27.4	28.3	(0.9)	3.1	2.4	0.7

European Union
France	8.6	8.8	(2.9)	3.6	3.9	(7.0)	3.6	3.8	(7.7)	0.1	—	—	44.9	45.1	(0.2)	0.6	0.3	0.3
Germany	18.2	18.2	0.4	7.1	7.1	0.4	6.6	6.8	(2.3)	0.5	0.3	62.8	39.0	39.0	—	2.6	1.6	1.0
Italy	16.6	16.8	(1.3)	7.9	8.3	(5.5)	6.3	7.2	(13.3)	1.6	1.1	47.7	52.6	52.3	0.3	9.6	6.1	3.5
Poland	10.6	10.8	(1.8)	4.1	4.5	(7.7)	3.4	4.1	(17.8)	0.8	0.4	94.2	39.0	41.5	(2.5)	7.4	3.8	3.6
Spain	10.1	10.9	(7.7)	3.1	3.1	(1.4)	3.0	3.0	(1.5)	0.1	0.1	1.2	31.2	30.7	0.5	1.1	0.8	0.3

Eastern Europe
Russia	55.7	58.4	(4.6)	17.6	19.2	(8.2)	13.3	15.4	(13.2)	4.3	3.8	12.0	32.3	31.2	1.1	7.2	5.0	2.2

Middle East & Africa
Saudi Arabia	5.8	4.6	26.0	2.9	2.6	14.0	2.8	2.6	11.6	0.1	—	—	40.4	51.6	(11.2)	0.5	—	0.5
Turkey	28.4	26.4	7.7	12.2	11.4	7.3	12.2	11.4	7.3	—	—	—	43.0	43.4	(0.4)	—	—	—

South & Southeast Asia
Indonesia	74.8	83.0	(10.0)	21.2	26.4	(19.7)	21.2	26.4	(19.7)	—	—	—	28.3	31.7	(3.4)	—	—	—
Philippines	15.0	17.8	(15.6)	9.5	12.5	(23.4)	9.5	12.5	(23.6)	—	—	—	63.5	69.9	(6.4)	0.2	—	0.2

East Asia & Australia
Australia	2.6	2.8	(5.1)	0.8	0.8	8.6	0.8	0.8	8.6	—	—	—	31.1	27.2	3.9	—	—	—
Japan	31.5	37.6	(16.3)	12.4	11.9	3.4	4.5	5.7	(20.2)	7.8	6.3	24.6	38.4	35.1	3.3	22.1	17.7	4.4
Korea	16.8	16.9	(0.5)	3.5	3.7	(4.7)	2.4	2.6	(9.0)	1.1	1.1	5.9	20.8	21.7	(0.9)	6.7	6.3	0.4

Latin America & Canada
Argentina	9.3	8.7	7.1	5.6	5.8	(3.5)	5.6	5.8	(3.5)	—	—	—	59.8	66.4	(6.6)	—	—	—

Mexico	8.7	10.4	(15.9)	5.9	7.3	(18.3)	5.9	7.3	(18.5)	—	—	—	67.9	70.0	(2.1)	0.2	0.1	0.1

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


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

Years Ended December 31,
Market	Total Market, bio units			PMI Shipments, bio units									PMI Market Share, % (1)
				Total			Cigarette			HTU			Total			HTU
	2020	2019	% Change	2020	2019	% Change	2020	2019	% Change	2020	2019	% Change	2020	2019	pp Change	2020	2019	pp Change

Total	2,548.4	2,705.0	(5.8)	704.6	766.4	(8.1)	628.5	706.7	(11.1)	76.1	59.7	27.6	27.7	28.4	(0.7)	3.0	2.2	0.8

European Union
France	36.6	37.9	(3.6)	16.3	17.0	(4.3)	16.1	16.9	(4.9)	0.2	0.1	+100	44.9	45.0	(0.1)	0.5	0.2	0.3
Germany	74.6	73.3	1.9	29.1	27.9	4.4	27.4	27.0	1.7	1.6	0.9	82.7	39.0	38.0	1.0	2.2	1.2	1.0
Italy	67.4	67.9	(0.8)	34.6	34.9	(0.8)	29.0	31.4	(7.4)	5.6	3.5	57.9	52.2	51.8	0.4	8.1	4.8	3.3
Poland	45.6	46.2	(1.3)	17.8	19.0	(6.7)	15.4	17.9	(13.8)	2.4	1.1	+100	39.0	41.2	(2.2)	5.2	2.5	2.7
Spain	41.8	45.4	(7.8)	13.2	14.5	(8.8)	12.8	14.1	(9.5)	0.4	0.3	19.6	31.4	31.3	0.1	1.0	0.7	0.3

Eastern Europe
Russia	219.1	226.5	(3.3)	69.2	68.0	1.8	55.6	58.8	(5.4)	13.6	9.2	48.4	32.3	30.1	2.2	6.3	3.8	2.5

Middle East & Africa
Saudi Arabia	21.7	20.8	4.4	9.1	9.2	(0.7)	9.0	9.2	(2.0)	0.1	—	—	39.0	43.0	(4.0)	0.3	—	0.3
Turkey	114.8	119.7	(4.2)	47.5	51.9	(8.5)	47.5	51.9	(8.5)	—	—	—	41.3	43.4	(2.1)	—	—	—

South & Southeast Asia
Indonesia	276.3	305.7	(9.6)	79.5	98.5	(19.3)	79.5	98.5	(19.3)	—	—	—	28.8	32.2	(3.4)	—	—	—
Philippines	62.1	70.5	(12.0)	41.7	49.7	(16.1)	41.7	49.7	(16.2)	—	—	—	67.2	70.5	(3.3)	0.1	—	0.1

East Asia & Australia
Australia	11.0	12.0	(8.8)	3.3	3.3	(0.8)	3.3	3.3	(0.8)	—	—	—	29.9	27.5	2.4	—	—	—
Japan	142.9	157.8	(9.4)	51.1	52.4	(2.4)	22.2	26.6	(16.4)	28.9	25.8	11.9	37.1	34.5	2.6	20.4	17.1	3.3
Korea	71.6	68.6	4.4	14.8	15.5	(4.3)	10.2	10.8	(6.0)	4.6	4.6	(0.3)	20.7	22.6	(1.9)	6.5	6.8	(0.3)

Latin America & Canada
Argentina	33.6	33.4	0.7	20.5	23.3	(12.2)	20.5	23.3	(12.2)	—	—	—	61.0	70.0	(9.0)	—	—	—

Mexico	30.7	35.5	(13.6)	19.5	23.8	(18.0)	19.5	23.8	(18.3)	0.1	—	—	63.7	67.1	(3.4)	0.2	—	0.2

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


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


	Total PMI	Quarters Ended December 31,				Years Ended December 31,
		2020	2019	% Change		2020	2019		% Change
	Total Shipment Volume	176,386	192,207	(8.2)	%	704,629	766,361		(8.1)	%
	Shipment Volume for RBH-owned brands (1)		—				(1,008)	(2)
	Total Shipment Volume	176,386	192,207	(8.2)	%	704,629	765,353	(3)	(7.9)	%

	Total Cigarette Shipment Volume	154,677	175,094	(11.7)	%	628,518	706,709		(11.1)	%
	Shipment Volume for RBH-owned brands (1)		—				(1,008)	(2)
	Total Cigarette Shipment Volume	154,677	175,094	(11.7)	%	628,518	705,701	(3)	(10.9)	%

	Total HTU Shipment Volume	21,709	17,113	26.9	%	76,111	59,652		27.6	%

	Latin America & Canada

	Total Shipment Volume	18,342	19,484	(5.9)	%	64,200	72,592		(11.6)	%
	Shipment Volume for RBH-owned brands		—				(995)	(2)
	Total Shipment Volume	18,342	19,484	(5.9)	%	64,200	71,597	(3)	(10.3)	%

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


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

		Quarters Ended					Diluted EPS		Years Ended
	December 31,							December 31,
			$	1.27			2020 Diluted Earnings Per Share (1)			$	5.16
			$	1.04			2019 Diluted Earnings Per Share (1)			$	4.61
			$	0.23			Change			$	0.55
			22.1			%	% Change			11.9			%

							Reconciliation:
			$	1.04			2019 Diluted Earnings Per Share (1)			$	4.61
			0.20				2019 Asset impairment and exit costs			0.23
			—				2019 Canadian tobacco litigation-related expense			0.09
			—				2019 Loss on deconsolidation of RBH			0.12
			—				2019 Russia excise and VAT audit charge			0.20
			(0.02)				2019 Fair value adjustment for equity security investments			(0.02)
			—				2019 Tax items			(0.04)


			(0.04)				2020 Asset impairment and exit costs			(0.08)
			0.05				2020 Brazil indirect tax credit			0.05
			—				2020 Fair value adjustment for equity security investments			(0.04)
			—				2020 Tax items			0.06
			(0.05)				Currency			(0.32)
			(0.01)				Interest			(0.02)
			0.04				Change in tax rate			0.05

			0.06				Operations (2)			0.27
			$	1.27			2020 Diluted Earnings Per Share (1)			$	5.16

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

		Quarters Ended							Years Ended
		December 31,							December 31,
		2020			2019				2020			2019
		$ 1,976			$ 1,616		Net Earnings attributable to PMI		$ 8,056			$ 7,185
		5			4		Less: Distributed and undistributed earnings attributable to share-based payment awards		20			17
		$ 1,971			$ 1,612		Net Earnings for basic and diluted EPS		$ 8,036			$ 7,168

		1,557			1,556		Weighted-average shares for basic EPS		1,557			1,555
		1			1		Plus Contingently Issuable Performance Stock Units		1			1
		1,558			1,557		Weighted-average shares for diluted EPS		1,558			1,556

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


								Schedule 2
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Diluted EPS to Reported Diluted EPS, excluding Currency,
and Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS, excluding Currency
(Unaudited)

	Quarters Ended December 31,					Years Ended December 31,
	2020	2019	% Change			2020	2019	% Change
	$ 1.27	$ 1.04	22.1	%	Reported Diluted EPS	$ 5.16	$ 4.61	11.9	%
	(0.05)				Less: Currency	(0.32)
	$ 1.32	$ 1.04	26.9	%	Reported Diluted EPS, excluding Currency	$ 5.48	$ 4.61	18.9	%


	Quarters Ended December 31,					Years Ended December 31,
	2020	2019	% Change			2020	2019	% Change
	$ 1.27	$ 1.04	22.1	%	Reported Diluted EPS	$ 5.16	$ 4.61	11.9	%
	0.04	0.20			Asset impairment and exit costs	0.08	0.23
	—	—			Canadian tobacco litigation-related expense	—	0.09
	—	—			Loss on deconsolidation of RBH	—	0.12
	—	—			Russia excise and VAT audit charge	—	0.20
	(0.05)	—			Brazil indirect tax credit	(0.05)	—
	—	(0.02)			Fair value adjustment for equity security investments	0.04	(0.02)
	—	—			Tax items	(0.06)	(0.04)
	$ 1.26	$ 1.22	3.3	%	Adjusted Diluted EPS	$ 5.17	$ 5.19	(0.4)	%
	(0.05)				Less: Currency	(0.32)
	$ 1.31	$ 1.22	7.4	%	Adjusted Diluted EPS, excluding Currency	$ 5.49	$ 5.19	5.8	%


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


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

	(1) Represents the impact of net earnings attributable to RBH from January 1, 2019 through March 21, 2019
	Note: EPS is computed independently for each of the periods presented. Accordingly, the sum of the quarterly EPS amounts may not agree to the total for the year


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

Net Revenues	Currency	Net Revenues excluding Currency	Acquisitions	Net Revenues excluding Currency & Acquisitions	Quarters Ended December 31,	Net Revenues	Total		Excluding Currency		Excluding Currency & Acquisitions

2020					Combustible Products	2019	% Change
$ 1,953	$ 109	$ 1,845	$ —	$ 1,845	European Union	$ 1,954	—	%	(5.6)	%	(5.6)	%
569	(65)	634	—	634	Eastern Europe	663	(14.2)	%	(4.4)	%	(4.4)	%
735	(31)	766	—	766	Middle East & Africa	910	(19.3)	%	(15.9)	%	(15.9)	%
1,184	5	1,179	—	1,179	South & Southeast Asia	1,487	(20.4)	%	(20.7)	%	(20.7)	%
592	17	574	—	574	East Asia & Australia	619	(4.5)	%	(7.3)	%	(7.3)	%
474	(43)	516	—	516	Latin America & Canada	546	(13.1)	%	(5.3)	%	(5.3)	%
$ 5,507	$ (7)	$ 5,514	$ —	$ 5,514	Total Combustible	$ 6,179	(10.9)	%	(10.8)	%	(10.8)	%

2020					Reduced-Risk Products	2019	% Change
$ 789	$ 42	$ 746	$ —	$ 746	European Union	$ 482	63.6	%	54.8	%	54.8	%
339	(53)	392	—	392	Eastern Europe	319	6.3	%	23.1	%	23.1	%
5	—	5	—	5	Middle East & Africa	74	(93.3)	%	(93.2)	%	(93.2)	%
1	—	1	—	1	South & Southeast Asia	—	—	%	—	%	—	%
792	19	774	—	774	East Asia & Australia	651	21.8	%	18.9	%	18.9	%
11	—	12	—	12	Latin America & Canada(1)	8	31.1	%	37.0	%	37.0	%
$ 1,937	$ 7	$ 1,930	$ —	$ 1,930	Total RRPs	$ 1,534	26.3	%	25.8	%	25.8	%

2020					PMI	2019	% Change
$ 2,742	$ 151	$ 2,591	$ —	$ 2,591	European Union	$ 2,436	12.6	%	6.4	%	6.4	%
908	(118)	1,026	—	1,026	Eastern Europe	982	(7.5)	%	4.5	%	4.5	%
740	(31)	771	—	771	Middle East & Africa	984	(24.8)	%	(21.6)	%	(21.6)	%
1,185	5	1,180	—	1,180	South & Southeast Asia	1,487	(20.3)	%	(20.6)	%	(20.6)	%
1,384	36	1,348	—	1,348	East Asia & Australia	1,270	9.0	%	6.1	%	6.1	%
485	(43)	528	—	528	Latin America & Canada	554	(12.5)	%	(4.7)	%	(4.7)	%
$ 7,444	$ —	$ 7,444	$ —	$ 7,444	Total PMI	$ 7,713	(3.5)	%	(3.5)	%	(3.5)	%

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


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

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

2020					Combustible Products	2019	% Change
$ 8,053	$ 13	$ 8,040	$ —	$ 8,040	European Union	$ 8,093	(0.5)	%	(0.7)	%	(0.7)	%
2,250	(165)	2,415	—	2,415	Eastern Europe	2,438	(7.7)	%	(0.9)	%	(0.9)	%
3,031	(77)	3,108	—	3,108	Middle East & Africa	3,721	(18.5)	%	(16.5)	%	(16.5)	%
4,395	(19)	4,414	—	4,414	South & Southeast Asia	5,094	(13.7)	%	(13.4)	%	(13.4)	%
2,468	1	2,467	—	2,467	East Asia & Australia	2,693	(8.4)	%	(8.4)	%	(8.4)	%
1,670	(162)	1,831	—	1,831	Latin America & Canada	2,179	(23.4)	%	(16.0)	%	(16.0)	%
$ 21,867	$ (408)	$ 22,275	$ —	$ 22,275	Total Combustible	$ 24,218	(9.7)	%	(8.0)	%	(8.0)	%

2020					Reduced-Risk Products	2019	% Change
$ 2,649	$ 8	$ 2,641	$ —	$ 2,641	European Union	$ 1,724	53.7	%	53.2	%	53.2	%
1,128	(98)	1,226	—	1,226	Eastern Europe	844	33.6	%	45.2	%	45.2	%
57	—	57	—	57	Middle East & Africa	321	(82.4)	%	(82.3)	%	(82.3)	%
1	—	1	—	1	South & Southeast Asia	—	—	%	—	%	—	%
2,961	32	2,929	—	2,929	East Asia & Australia	2,671	10.9	%	9.7	%	9.7	%
31	(2)	34	—	34	Latin America & Canada(1)	27	18.0	%	25.8	%	25.8	%
$ 6,827	$ (61)	$ 6,888	$ —	$ 6,888	Total RRPs	$ 5,587	22.2	%	23.3	%	23.3	%

2020					PMI	2019	% Change
$ 10,702	$ 21	$ 10,681	$ —	$ 10,681	European Union	$ 9,817	9.0	%	8.8	%	8.8	%
3,378	(263)	3,641	—	3,641	Eastern Europe	3,282	2.9	%	10.9	%	10.9	%
3,088	(77)	3,165	—	3,165	Middle East & Africa	4,042	(23.6)	%	(21.7)	%	(21.7)	%
4,396	(19)	4,415	—	4,415	South & Southeast Asia	5,094	(13.7)	%	(13.3)	%	(13.3)	%
5,429	33	5,396	—	5,396	East Asia & Australia	5,364	1.2	%	0.6	%	0.6	%
1,701	(164)	1,865	—	1,865	Latin America & Canada	2,206	(22.9)	%	(15.5)	%	(15.5)	%
$ 28,694	$ (469)	$ 29,163	$ —	$ 29,163	Total PMI	$ 29,805	(3.7)	%	(2.2)	%	(2.2)	%

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


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

Operating Income		Currency	Operating Income excluding Currency	Acquisitions	Operating Income excluding Currency & Acquisitions		Operating Income		Total		Excluding Currency		Excluding Currency & Acquisitions

2020						Quarters Ended December 31,	2019		% Change
$ 1,174	(1)	$ 83	$ 1,091	$ —	$ 1,091	European Union	$ 624	(3)	88.1	%	74.8	%	74.8	%
261	(1)	(91)	352	—	352	Eastern Europe	263		(0.8)	%	33.8	%	33.8	%
207	(1)	(36)	243	—	243	Middle East & Africa	380		(45.5)	%	(36.1)	%	(36.1)	%
419	(1)	2	417	—	417	South & Southeast Asia	692		(39.5)	%	(39.7)	%	(39.7)	%
608	(1)	19	589	—	589	East Asia & Australia	412		47.6	%	43.0	%	43.0	%
236	(2)	(25)	261	—	261	Latin America & Canada	135	(4)	74.8	%	93.3	%	93.3	%
$ 2,905		$ (48)	$ 2,953	$ —	$ 2,953	Total PMI	$ 2,506		15.9	%	17.8	%	17.8	%

2020						Years Ended December 31,	2019		% Change
$ 5,098	(5)	$ (24)	$ 5,122	$ —	$ 5,122	European Union	$ 3,970	(3)	28.4	%	29.0	%	29.0	%
871	(5)	(299)	1,170	—	1,170	Eastern Europe	547	(7)	59.2	%	+100%		+100%
1,026	(5)	(65)	1,091	—	1,091	Middle East & Africa	1,684		(39.1)	%	(35.2)	%	(35.2)	%
1,709	(5)	2	1,707	—	1,707	South & Southeast Asia	2,163	(8)	(21.0)	%	(21.1)	%	(21.1)	%
2,400	(5)	21	2,379	—	2,379	East Asia & Australia	1,932		24.2	%	23.1	%	23.1	%
564	(6)	(110)	674	—	674	Latin America & Canada	235	(9)	+100%		+100%		+100%
$ 11,668		$ (475)	$ 12,143	$ —	$ 12,143	Total PMI	$ 10,531		10.8	%	15.3	%	15.3	%

(1) Includes asset impairment and exit costs: EU ($30 million), EE ($8 million), ME&A ($10 million), S&SA ($12 million), EA&A ($13 million)
(2) Includes the Brazil indirect tax credit $119 million and asset impairment and exit costs ($5 million)
(3) Includes asset impairment and exit costs ($342 million)
(4) Includes asset impairment and exit costs ($15 million)
(5) Includes asset impairment and exit costs: EU ($57 million), EE ($15 million), ME&A ($19 million), S&SA ($23 million), EA&A ($26 million)
(6) Includes the Brazil indirect tax credit $119 million and asset impairment and exit costs ($9 million)
(7) Includes the Russia excise and VAT audit charge ($374 million)
(8) Includes asset impairment and exit costs ($20 million)
(9) Includes asset impairment and exit costs ($60 million), the Canadian tobacco litigation-related expense ($194 million) and the loss on deconsolidation of RBH ($239 million)


																Schedule 7
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Operating Income to Adjusted Operating Income, excluding Currency and Acquisitions
($ in millions) / (Unaudited)

Operating Income	Asset Impairment & Exit Costs and Others		Adjusted Operating Income	Currency	Adjusted Operating Income excluding Currency	Acqui-sitions	Adjusted Operating Income excluding Currency & Acqui-sitions			Operating Income	Asset Impairment & Exit Costs and Others		Adjusted Operating Income	Total		Excluding Currency		Excluding Currency & Acqui-sitions

2020								Quarters Ended December 31,		2019				% Change
$ 1,174	$ (30)	(1)	$ 1,204	$ 83	$ 1,121	$ —	$ 1,121		European Union	$ 624	$ (342)	(1)	$ 966	24.6	%	16.0	%	16.0	%
261	(8)	(1)	269	(91)	360	—	360		Eastern Europe	263	—		263	2.3	%	36.9	%	36.9	%
207	(10)	(1)	217	(36)	253	—	253		Middle East & Africa	380	—		380	(42.9)	%	(33.4)	%	(33.4)	%
419	(12)	(1)	431	2	429	—	429		South & Southeast Asia	692	—		692	(37.7)	%	(38.0)	%	(38.0)	%
608	(13)	(1)	621	19	602	—	602		East Asia & Australia	412	—		412	50.7	%	46.1	%	46.1	%
236	114	(2)	122	(25)	147	—	147		Latin America & Canada	135	(15)	(1)	150	(18.7)	%	(2.0)	%	(2.0)	%
$ 2,905	$ 41		$ 2,864	$ (48)	$ 2,912	$ —	$ 2,912		Total PMI	$ 2,506	$ (357)		$ 2,863	—	%	1.7	%	1.7	%

2020								Years Ended December 31,		2019				% Change
$ 5,098	$ (57)	(1)	$ 5,155	$ (24)	$ 5,179	$ —	$ 5,179		European Union	$ 3,970	$ (342)	(1)	$ 4,312	19.6	%	20.1	%	20.1	%
871	(15)	(1)	886	(299)	1,185	—	1,185		Eastern Europe	547	(374)	(4)	921	(3.8)	%	28.7	%	28.7	%
1,026	(19)	(1)	1,045	(65)	1,110	—	1,110		Middle East & Africa	1,684	—		1,684	(37.9)	%	(34.1)	%	(34.1)	%
1,709	(23)	(1)	1,732	2	1,730	—	1,730		South & Southeast Asia	2,163	(20)	(1)	2,183	(20.7)	%	(20.8)	%	(20.8)	%
2,400	(26)	(1)	2,426	21	2,405	—	2,405		East Asia & Australia	1,932	—		1,932	25.6	%	24.5	%	24.5	%
564	110	(3)	454	(110)	564	—	564		Latin America & Canada	235	(493)	(5)	728	(37.6)	%	(22.5)	%	(22.5)	%
$ 11,668	$ (30)		$ 11,698	$ (475)	$ 12,173	$ —	$ 12,173		Total PMI	$ 10,531	$ (1,229)		$ 11,760	(0.5)	%	3.5	%	3.5	%

(1) Represents asset impairment and exit costs
(2) Includes the Brazil indirect tax credit $119 million and asset impairment and exit costs ($5 million)
(3) Includes the Brazil indirect tax credit $119 million and asset impairment and exit costs ($9 million)
(4) Represents the Russia excise and VAT audit charge
(5) Includes asset impairment and exit costs ($60 million), the Canadian tobacco litigation-related expense ($194 million) and the loss on deconsolidation of RBH ($239 million)


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

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

2020												Quarters Ended December 31,		2019				% Points Change
$ 1,204	$ 2,742	43.9	%	$ 1,121	$ 2,591	43.3	%	$ 1,121	$ 2,591	43.3	%		European Union	$ 966	$ 2,436	39.7	%	4.2	3.6	3.6
269	908	29.6	%	360	1,026	35.1	%	360	1,026	35.1	%		Eastern Europe	263	982	26.8	%	2.8	8.3	8.3
217	740	29.3	%	253	771	32.8	%	253	771	32.8	%		Middle East & Africa	380	984	38.6	%	(9.3)	(5.8)	(5.8)
431	1,185	36.4	%	429	1,180	36.4	%	429	1,180	36.4	%		South & Southeast Asia	692	1,487	46.5	%	(10.1)	(10.1)	(10.1)
621	1,384	44.9	%	602	1,348	44.7	%	602	1,348	44.7	%		East Asia & Australia	412	1,270	32.4	%	12.5	12.3	12.3
122	485	25.2	%	147	528	27.8	%	147	528	27.8	%		Latin America & Canada	150	554	27.1	%	(1.9)	0.7	0.7
$ 2,864	$ 7,444	38.5	%	$ 2,912	$ 7,444	39.1	%	$ 2,912	$ 7,444	39.1	%		Total PMI	$ 2,863	$ 7,713	37.1	%	1.4	2.0	2.0

2020												Years Ended December 31,		2019				% Points Change
$ 5,155	$ 10,702	48.2	%	$ 5,179	$ 10,681	48.5	%	$ 5,179	$ 10,681	48.5	%		European Union	$ 4,312	$ 9,817	43.9	%	4.3	4.6	4.6
886	3,378	26.2	%	1,185	3,641	32.5	%	1,185	3,641	32.5	%		Eastern Europe	921	3,282	28.1	%	(1.9)	4.4	4.4
1,045	3,088	33.8	%	1,110	3,165	35.1	%	1,110	3,165	35.1	%		Middle East & Africa	1,684	4,042	41.7	%	(7.9)	(6.6)	(6.6)
1,732	4,396	39.4	%	1,730	4,415	39.2	%	1,730	4,415	39.2	%		South & Southeast Asia	2,183	5,094	42.9	%	(3.5)	(3.7)	(3.7)
2,426	5,429	44.7	%	2,405	5,396	44.6	%	2,405	5,396	44.6	%		East Asia & Australia	1,932	5,364	36.0	%	8.7	8.6	8.6
454	1,701	26.7	%	564	1,865	30.2	%	564	1,865	30.2	%		Latin America & Canada	728	2,206	33.0	%	(6.3)	(2.8)	(2.8)
$ 11,698	$ 28,694	40.8	%	$ 12,173	$ 29,163	41.7	%	$ 12,173	$ 29,163	41.7	%		Total PMI	$ 11,760	$ 29,805	39.5	%	1.3	2.2	2.2

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


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

		Quarters Ended December 31,						Years Ended December 31,
		2020		2019		% Change		2020		2019			% Change
	Net Revenues	$ 7,444		$ 7,713		(3.5)	%	$ 28,694		$ 29,805			(3.7)	%
	Net Revenues attributable to RBH			—						(181)		(1)
	Net Revenues	$ 7,444		$ 7,713		(3.5)	%	$ 28,694		$ 29,624		(2)	(3.1)	%
	Less: Currency	—						(470)
	Net Revenues, ex. currency	$ 7,444		$ 7,713		(3.5)	%	$ 29,164		$ 29,624		(2)	(1.6)	%








	Adjusted Operating Income (3)	$ 2,864		$ 2,863		—	%	$ 11,698		$ 11,760			(0.5)	%
	Operating Income attributable to RBH			—						(126)		(1)
	Adjusted Operating Income	$ 2,864		$ 2,863		—	%	$ 11,698		$ 11,634		(2)	0.6	%
	Less: Currency	(48)						(474)
	Adjusted Operating Income, ex. currency	$ 2,912		$ 2,863		1.7	%	$ 12,172		$ 11,634		(2)	4.6	%

	Adjusted OI Margin	38.5	%	37.1	%	1.4		40.8	%	39.5	%		1.3
	Adjusted OI Margin attributable to RBH			—						(0.2)		(1)
	Adjusted OI Margin	38.5	%	37.1	%	1.4		40.8	%	39.3	%	(2)	1.5
	Less: Currency	(0.6)						(0.9)
	Adjusted OI Margin, ex. currency	39.1	%	37.1	%	2.0		41.7	%	39.3	%	(2)	2.4

	Adjusted Diluted EPS (4)	$ 1.26		$ 1.22		3.3	%	$ 5.17		$ 5.19			(0.4)	%
	Net earnings attributable to RBH			—						(0.06)		(1)
	Adjusted Diluted EPS	$ 1.26		$ 1.22		3.3	%	$ 5.17		$ 5.13		(2)	0.8	%
	Less: Currency	(0.05)						(0.32)
	Adjusted Diluted EPS, ex. currency	$ 1.31		$ 1.22		7.4	%	$ 5.49		$ 5.13		(2)	7.0	%

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


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

	Latin America & Canada	Quarters Ended December 31,						Years Ended December 31,
		2020		2019		% Change		2020		2019			% Change
	Net Revenues	$ 485		$ 554		(12.5)	%	$ 1,701		$ 2,206			(22.9)	%
	Net Revenues attributable to RBH			—						(179)		(1)
	Net Revenues	$ 485		$ 554		(12.5)	%	$ 1,701		$ 2,027		(2)	(16.1)	%
	Less: Currency	(43)						(165)
	Net Revenues, ex. currency	$ 528		$ 554		(4.7)	%	$ 1,866		$ 2,027		(2)	(7.9)	%

	Operating Income	$ 236		$ 135		74.8	%	$ 564		$ 235			+100%
	Less:
	Asset impairment and exit costs	(5)		(15)				(9)		(60)
	Canadian tobacco litigation-related expense	—		—				—		(194)
	Loss on deconsolidation of RBH	—		—				—		(239)
	Brazil indirect tax credit	119		—				119		—
	Adjusted Operating Income	$ 122		$ 150		(18.7)	%	$ 454		$ 728			(37.6)	%
	Operating Income attributable to RBH			—						(125)		(1)
	Adjusted Operating Income	$ 122		$ 150		(18.7)	%	$ 454		$ 603		(2)	(24.7)	%
	Less: Currency	(25)						(108)
	Adjusted Operating Income, ex. currency	$ 147		$ 150		(2.0)	%	$ 562		$ 603		(2)	(6.8)	%

	Adjusted OI Margin	25.2	%	27.1	%	(1.9)		26.7	%	33.0	%		(6.3)
	Adjusted OI Margin attributable to RBH			—						(3.3)		(1)
	Adjusted OI Margin	25.2	%	27.1	%	(1.9)		26.7	%	29.7	%	(2)	(3.0)
	Less: Currency	(2.6)						(3.4)
	Adjusted OI Margin, ex. currency	27.8	%	27.1	%	0.7		30.1	%	29.7	%	(2)	0.4

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


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

Quarters Ended December 31,					Years Ended December 31,
2020	2019	Change Fav./(Unfav.)			2020	2019	Change Fav./(Unfav.)
$ 19,531	$ 19,849	(1.6)	%	Revenues including Excise Taxes	$ 76,047	$ 77,921	(2.4)	%
12,087	12,136	0.4	%	Excise Taxes on products	47,353	48,116	1.6	%
7,444	7,713	(3.5)	%	Net Revenues	28,694	29,805	(3.7)	%
2,572	2,778	7.4	%	Cost of sales	9,569	10,513	9.0	%
4,872	4,935	(1.3)	%	Gross profit	19,125	19,292	(0.9)	%
1,949	2,413	19.2	%	Marketing, administration and research costs (1)	7,384	8,695	15.1	%
18	16			Amortization of intangibles	73	66
2,905	2,506	15.9	%	Operating Income	11,668	10,531	10.8	%
164	136	(20.6)	%	Interest expense, net	618	570	(8.4)	%
29	28	(3.6)	%	Pension and other employee benefit costs	97	89	(9.0)	%
2,712	2,342	15.8	%	Earnings before income taxes	10,953	9,872	11.0	%
613	623	1.6	%	Provision for income taxes	2,377	2,293	(3.7)	%
(20)	(63)			Equity investments and securities (income)/loss, net	(16)	(149)
2,119	1,782	18.9	%	Net Earnings	8,592	7,728	11.2	%
143	166			Net Earnings attributable to noncontrolling interests	536	543
$ 1,976	$ 1,616	22.3	%	Net Earnings attributable to PMI	$ 8,056	$ 7,185	12.1	%

				Per share data (2):
$ 1.27	$ 1.04	22.1	%	Basic Earnings Per Share	$ 5.16	$ 4.61	11.9	%
$ 1.27	$ 1.04	22.1	%	Diluted Earnings Per Share	$ 5.16	$ 4.61	11.9	%

(1) Year ended December 31, 2020 includes asset impairment and exit costs ($149 million) and the Brazil indirect tax credit $119 million. Year ended December 31, 2019 includes asset impairment and exit costs ($422 million), the Canadian tobacco litigation-related expense ($194 million), the loss on deconsolidation of RBH ($239 million) and the Russia excise and VAT audit charge ($374 million). Quarter ended December 31, 2020 includes asset impairment and exit costs ($78 million) and the Brazil indirect tax credit $119 million. Quarter ended December 31, 2019 includes asset impairment and exit costs ($357 million).
(2) Net Earnings and weighted-average shares used in the basic and diluted Earnings Per Share computations for the quarters and for the year ended December 31, 2020 and 2019 are shown on Schedule 1, Footnote 1


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

	December 31,			December 31,
	2020			2019
Assets
Cash and cash equivalents		$	7,280		$	6,861
All other current assets		14,212			13,653
Property, plant and equipment, net		6,365			6,631
Goodwill		5,964			5,858
Other intangible assets, net		2,019			2,113
Equity investments		4,798			4,635
Other assets		4,177			3,124
Total assets		$	44,815		$	42,875

Liabilities and Stockholders' (Deficit) Equity
Short-term borrowings		$	244		$	338
Current portion of long-term debt		3,124			4,051
All other current liabilities		16,247			14,444
Long-term debt		28,168			26,656
Deferred income taxes		684			908
Other long-term liabilities		6,979			6,077
Total liabilities		55,446			52,474

Total PMI stockholders' deficit		(12,567)			(11,577)
Noncontrolling interests		1,936			1,978
Total stockholders' (deficit) equity		(10,631)			(9,599)
Total liabilities and stockholders' (deficit) equity		$	44,815		$	42,875


							Schedule 13
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Calculation of Total Debt to Adjusted EBITDA and Net Debt to Adjusted EBITDA Ratios
($ in millions, except ratios) / (Unaudited)

	Year Ended December 31, 2020	Year Ended December 31, 2019


Net Earnings				$	8,592			$	7,728
Equity investments and securities (income)/loss, net				(16)				(149)
Provision for income taxes				2,377				2,293
Interest expense, net				618				570
Depreciation and amortization				981				964
Asset impairment and exit costs and Others (1)				30				1,229
Adjusted EBITDA				$ 12,582				$	12,635

			December 31,			December 31,
			2020			2019
Short-term borrowings				$	244			$	338
Current portion of long-term debt				3,124				4,051
Long-term debt				28,168				26,656
Total Debt				$	31,536			$	31,045
Cash and cash equivalents				7,280				6,861
Net Debt				$	24,256			$	24,184

Ratios:
Total Debt to Adjusted EBITDA				2.51				2.46
Net Debt to Adjusted EBITDA				1.93				1.91

(1) For the year ended December 31, 2020, Others include the Brazil indirect tax credit $119 million. For the year ended December 31, 2019, Others include the Canadian tobacco litigation-related expense ($194 million), the loss on deconsolidation of RBH ($239 million) and the Russia excise and VAT audit charge ($374 million)

Exhibit 99.2

Philip Morris International Inc.

2020 Fourth-Quarter Conference Call

February 4, 2021

NICK ROLLI

(SLIDE 1.)

Welcome. Thank you for joining us. Earlier today, we issued a press release containing detailed information on our 2020 fourth-quarter and full-year 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.

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

(SLIDE 3.)

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

(SLIDE 4.)

Please also note the additional Forward-Looking and Cautionary Statements related to COVID-19. In addition, please be aware that today's remarks and question and answer session will focus on the performance in 2020 and the outlook for 2021. We plan to address the outlook beyond 2021 at our virtual Investor Day next week on February 10.

It’s now my pleasure to introduce Emmanuel Babeau, our Chief Financial Officer. André Calantzopoulos, our Chief Executive Officer, and Jacek Olczak, our Chief Operating Officer, will join for the question and answer session. 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 robust performance in 2020, despite the unprecedented challenges of the global pandemic.

Most impressive was the continued strong growth of IQOS, which made up over 10% of our volumes and almost one quarter of our net revenues for the year. The daily consumption of HTUs by IQOS users saw minimal impact from social restrictions, and despite significant constraints, we were able to continue acquiring new users, in-switching from cigarettes, at a very good pace to reach a total of 17.6 million, of which 12.7 million have switched to IQOS and stopped smoking. HTU shipment volumes grew 28% compared to the prior year, with record market shares in key IQOS geographies in Q4. Moreover, 10 markets exited 2020 with double-digit national share in December.

Our rate of user acquisition was again strong in Q4, propelled by the increasing sophistication of our digital commercial model and the positive word-of-mouth effect from this increasing prominence, despite tighter restrictions in a number of markets.

The most significant pandemic-related headwinds we faced were in the combustible business, with the highest impact in Duty-Free and Southeast Asia, where we also faced additional challenges in Indonesia due to the excise tax structure. The least impacted Region was the EU. While the timing and duration of the recovery remains uncertain, we expect a rebound in industry volumes over the next 1-2 years as the pandemic recedes.

Despite these challenges, our operating margins were again significantly ahead in the fourth quarter and the full year. This reflects the increasing weight and profitability of IQOS, and the delivery of our 3 year cost efficiency target one year ahead of schedule, which also enables reinvestment in the business. This drove excellent EPS growth and cash generation, where we also exceeded our prior targets.

From a product standpoint, we broadened our smoke-free portfolio with a wider range of consumables, such as HEETS Dimensions and Fiit, and the launch of IQOS VEEV in e-vapor, and LIL in heat-not-burn.

We also continued to make good progress around the world on the recognition of the positive impact of switching smokers to scientifically substantiated RRPs. The FDA's Modified Risk Tobacco Product authorization of a version of IQOS was a major milestone in this regard. This was also followed by the pre-market authorization of the IQOS 3 device in December.

(SLIDE 6.)

Turning to the headline numbers, our full-year net revenues declined by 1.6% on an organic basis. This was an exceptionally resilient performance, in the context of the pandemic. We estimate that Duty Free, net of partial volume recapture in local markets, and Indonesia alone were a mid-single digit drag on our top line growth. Despite these factors, we saw strong organic growth of 6.9% in our net revenue per unit, driven by the increasing weight of IQOS in our sales mix.

Combustible tobacco pricing was 3.7%, reflecting solid pricing in many markets, partially offset by headwinds in Indonesia. Excluding Indonesia, combustible pricing was around 6%.

Despite the decline in organic net revenues and combustible volumes, our adjusted operating income margin increased by 240 basis points on an organic basis. This reflects the positive impact of IQOS on both our gross margin and the ratio of SG&A to net revenues, which I'll come back to. The resulting 7.0% adjusted diluted organic EPS growth exceeds our previous guidance of around 6%, and also reflects a strong end to the year in Japan.

(SLIDE 7.)

This brings me on to the fourth quarter, which had very similar dynamics to the full year. Organic net revenues declined by 3.5%. While a significant improvement from the decline of almost 10% in Q2, continued weakness in Indonesia and Duty-Free, and a lower total market in the Philippines, including price increase effects, more than offset a strong performance from IQOS.

Our net revenue per unit again increased solidly by 5.2% due to the same factors as the full year. Our adjusted operating income margin expanded by 200 basis points to deliver 7.4% adjusted diluted EPS growth, all on an organic basis.

(SLIDE 8.)

Before we turn back to the full year, I will now expand on the strong underlying Q4 dynamics in a little more detail.

Our HTU shipment volumes continued to show strong growth and reached a record 21.7 billion units -- driven by the EU Region, Japan and Russia.

In Japan, the industry was weak as expected, as consumer and trade de-loading following the October tax-driven price increase led to a 13% decline in the total tobacco market, including cigarillos. We outperformed this trend significantly as a strong finish for IQOS offtake and share gave rise to higher shipments for both in-quarter sell-out and to provide appropriate inventories for a strong expected start to 2021.

With social restrictions starting to tighten toward the end of the quarter in a number of markets in response to a second wave of the pandemic, combustible volumes and revenues saw some impact from reduced mobility and social occasions; albeit to a significantly lesser degree than the second quarter. Nonetheless, the strength of the IQOS business enabled the EU, Eastern Europe and East Asia & Australia Regions to deliver mid-single digit top-line growth.

Elsewhere, the continued challenges in Indonesia and Duty-Free against a tough comparison, and a lower total market in the Philippines in the immediate aftermath of a price increase, weighed on revenue growth. Despite the ongoing restrictions in many markets in the first quarter of 2021, and a tough prior year comparison, we expect better top-line performance, which I'll come back to later.

(SLIDE 9.)

Let me now go into the drivers of our 2020 margin expansion, starting with gross margin, which expanded by 200 basis points on an organic basis. This is driven by multiple levers. First, our ongoing transformation is delivering an increasing mix of IQOS consumables in our business. Second is pricing on combustibles. Third, is our focus on overall manufacturing and supply chain productivity which compensated for lower combustible volumes, exacerbated by impact of the pandemic, in addition to inflation, investments and extraordinary COVID-related costs in our supply chain.

(SLIDE 10.)

Gross margin expansion was augmented by our focus on SG&A efficiencies, with our adjusted marketing, administration and research costs 40 basis points lower as a percentage of net revenues, on an organic basis. This reflects the ongoing digitalization and simplification of our business processes, including our IQOS commercial engine, and more efficient ways of working.

(SLIDE 11.)

A clear focus on cost efficiencies allows us to improve profitability while continuing to invest in the growth of IQOS. I am very pleased to report that we have already achieved our 2019-21 target of over $1 billion in annualized gross savings in only 2 years, with $1.1billion delivered by the end of 2020. Over two-thirds of these savings came from manufacturing and supply chain productivity and device costs, where our focus on efficiency, quality and footprint more than offset inflation, supply chain investments, extraordinary COVID-related costs and the effect of lower combustible volumes.

The remainder came from commercial efficiencies and G&A costs. Importantly, these savings do not include those resulting from the pandemic, such as reduced travel and the necessary shift of consumers to digital channels. Between higher manufacturing costs and SG&A savings such as

these, we estimate a net efficiency of around $150m due to COVID effects. We plan to elaborate further on our cost initiatives, and their fueling of IQOS growth, at next week's investor day.

(SLIDE 12.)

The strong uplift in our profitability and excellent earnings growth allowed us to deliver nearly $10 billion in operating cash flow for the year, well above our expectation of at least $9 billion. This represents 3.5% like-for-like, ex-currency growth and also reflects ongoing working capital initiatives, an impressive performance in a year with significant disruption to global supply chains.

Our capital expenditures amounted to $0.6 billion, below our historic run rate. Significant improvements in manufacturing performance have translated into lower ongoing requirements, however, we also benefited from the timing of certain investments and expect capex of around $0.8 billion in 2021.

Aside from reinvesting in the business, the primary use of cash is on returns to shareholders and we raised the quarterly dividend this year to an annualized rate of $4.80 per share. Capital allocation is another topic we will cover at investor day.

(SLIDE 13.)

I turn now to industry volumes, which declined by around 6% in 2020, excluding the U.S. and China. This compares to the historic average of a 2-3% decline; we estimate the 3-4% difference is almost entirely attributable to the effects of the COVID pandemic on the combustible category. As is evident in our results, the smoke-free category has displayed remarkable resilience, reflecting its convenience and suitability for different use occasions.

As we have covered in prior quarters, lower daily consumption in combustibles has been driven by two main factors; first, the reduction in usage occasions during confinement, especially in markets with a large amount of daily wage workers; and second, the reduced amount of social occasions due to the closure of hospitality settings, and restrictions on social gatherings. Duty Free also remains depressed, in line with global travel.

We have seen a partial recovery in daily consumption since the most severe period of reduced mobility in Q2, and we expect a gradual improvement as the pandemic recedes. As we all know, there remains considerable uncertainty on the speed, shape and timing of exiting the pandemic - and at present many countries are experiencing a serious resurgence in infections. However, based on our recent experience with renewed lockdown situations, we do not expect to see a repeat of the severe drop in consumption of Q2, 2020. However, it is uncertain if any rebound will occur this year, so we assume the historic average decline of 2-3% to be the floor for industry trends in 2021. I'll come back to this when discussing guidance assumptions.

(SLIDE 14.)

Turning to our volume performance, weak combustible industry volumes were compounded by our exposure to Indonesia and Duty-Free, and the over-indexing of our premium portfolio to social consumption occasions. It follows that as the pandemic recedes, we should see a better dynamic in our market share, and I'll come to this point shortly. As expected, quarterly fluctuations in inventory levels were evened out over the year with no significant difference between our IMS and shipments.

(SLIDE 15.)

The clear highlight in our volume performance was the shipment of 76.1 billion HTUs in 2020. This was just above the upper end of our previously communicated 75-76 billion range and represents 28% growth over the prior year. HTU net revenues increased by 33% on an organic basis, partly reflecting positive mix. We remain well on track to deliver on our target of 90-100 billion units this year, and we will have more to say on the outlook beyond 2021 next week.

(SLIDE 16.)

This strong performance from IQOS means that heated tobacco units made up over 10% of our total shipment volume in 2020, and over 12% in the fourth quarter, as compared to approximately 8% in the year of 2019, and 5% in 2018. We continue to expect this proportion to grow over time as the positive momentum on IQOS continues, providing a powerful driver of revenue and margin growth.

(SLIDE 17.)

Our sales mix is changing rapidly. Smoke-free products made up 26% of our total net revenues in the fourth quarter. IQOS devices accounted for approximately 7% of the $6.8 billion of RRP net revenues for the full year, mainly due to a naturally lower ratio of new users to existing users, longer replacement cycles and geographic mix. In some geographies we still sell a substantial amount of the lower-priced original IQOS 2.4+ device, and we have now introduced LIL SOLID in Eastern Europe.

(SLIDE 18.)

Focusing now on our total international market share, our volume share increased by 0.2 points before the impact of Duty Free cigarettes and Indonesia. This was driven by higher share for heated tobacco units, which increased by 0.8 points to reach 3.0%, only partly offset by lower share for cigarettes.

In key markets where IQOS has a meaningful presence, our share increased with very few exceptions. However, our total international market share was negatively impacted by Duty Free and Indonesia.

Marlboro remains by far the world's leading brand with 9.5% share of cigarettes in 2020. However, in many markets, it over-indexes to social consumption occasions, which are naturally lower during COVID-related restrictions. Indeed, we saw aggregate Marlboro share movements track pandemic developments over the course of the year, and expect its recovery to have a similar trend.

In terms of value share, i.e. our share of total industry net revenues excluding the U.S. and China, which is more closely related to financial performance, we estimate to be significantly above our volume share, given the premium positioning of Marlboro and IQOS. We expect our value share to grow strongly in 2021, driven by IQOS.

(SLIDE 19.)

I turn now to Indonesia. After a difficult 2020, we enter 2021 with a sequentially stable share trend, supported by our leadership of the hand-rolled kretek segment, which is growing again.

New excise duty rates will come into force on February 1, with a weighted average increase of around 13% for our portfolio over 2021. This is broadly in line with the average annual increase prior to 2020, and for PMI is a lower average increase than the industry given our over-indexing to hand-rolled kreteks, where excise rates are unchanged. Given this higher-margin segment, which supports significant employment in Indonesia, is both lower-priced and less taxed than machine-made products, we expect a tailwind for our market share and financial performance over the coming year.

Despite the negative consequences for government revenues, there has not yet been a significant move to level the playing field between the tier one and below-tier one segments. We remain hopeful that the government will address this issue over time.

With respect to the minimum retail selling price, enforcement continues to progress slowly given mobility constraints. However, we expect the impact on the market is now likely to be more limited. The large majority of the industry is now above minimum levels, and with no change in the minimum price in 2021, the pass-on of new excise rates would move the remainder of the industry above compliant levels.

We also saw a flattening in the growth of the below-tier one segment in the fourth quarter, and a gradual improvement in our shipment volumes. As in many other markets, daily consumption improved since Q2 but is still below pre-pandemic levels, and remains sensitive to social restrictions.

Indonesia was a material drag on our 2020 financial results. While there remains much work to be done on the excise structure, and ongoing uncertainty with the regard to the pandemic, for 2021 we expect a much less negative industry volume trend, a better market share outlook and a much smaller impact on our overall performance.

(SLIDE 20.)

For the total international cigarette category, we assume a rebound over 2021-22 as the negative impacts of COVID on daily consumption reverse. The fundamentals of the category also remain intact, including price elasticities, which we estimate at around -0.4 on a global average basis.

With regard to our combustible portfolio, investment levels remain adequate; however, incrementally more may be needed in the immediate aftermath of COVID. We will continue investing in the brand equity of Marlboro, which remains by far the world's leading brand. Given the economic environment, the management of price gaps and growing our share of the low-price segment will also be a focus.

Pricing in combustibles remains an important driver of performance, and while the carry-over effects of COVID may impact our 2021 variance, the pricing power of our portfolio remains strong. Additionally, as HTU volumes grow, this pricing power increases due to the higher price productivity on HEETS and our other HTU brands. I would also highlight that pricing is no longer the sole driver of our top-line growth, with the increasing weight of IQOS in our sales mix generating significant growth in our average selling price.

(SLIDE 21.)

I move now to IQOS performance. We estimate that there were 17.6 million legal-age IQOS users as of December 31. This represents the addition of around 1.2 million adult users since the end of the third quarter and over 4 million in 2020. We have notably seen user acquisition accelerate through the second half of the year, despite renewed pandemic-linked restrictions in the fourth quarter in a number of markets. Our accelerated pivot to digital and remote engagement, combined with strong momentum for the IQOS brand, is paying off.

We further estimate that 72% of this total -- or 12.7 million adult smokers -- have switched to IQOS and stopped smoking, with the balance in various stages of conversion.

This again reflects widespread user growth momentum across all key IQOS geographies, including the EU Region, Japan and Russia. As our user base expands in markets such as Japan and Russia, we are increasingly enriching our offer and segmenting the category with new products and more price points.

The addition of LIL SOLID in Russia and Ukraine in the second half helped us to reach a broader range of legal-age smokers in these markets and bring them in to the smoke-free category, though at this early stage the number of users acquired through the purchase of a LIL device is immaterial in the context of our user base.

As we have said previously, we plan to bring more exciting innovation from IQOS in the coming quarters, which we will elaborate on further next week.

(SLIDE 22.)

In the EU Region, fourth-quarter share for HEETS reached a record 5.0% of total cigarette and HTU industry volume. As shown on this slide, this reflects strong sequential and year-over-year growth in IMS volumes. I draw your attention to the contrast between the consistent sequential growth in IMS, and the progression in sequential quarterly share which can be distorted by the seasonality of the combustible market, in addition to other fluctuations linked to the pandemic, such as border closures and other social restrictions. It follows that 2021 and future years are also likely to see underlying share gains accentuated in the winter months, with the converse dynamic in Q2 and Q3.

This excellent performance reflects strong growth in Italy, exiting the year with 10% share, with the large majority of user acquisition coming organically as the increasing awareness and prominence of the product builds its own momentum. Germany and Poland were also strong contributors. We added a further 0.6 million IQOS users in the fourth quarter to reach 5.2 million, a continuation of recent strong performance.

(SLIDE 23.)

In addition, we saw further progress in Spain and in the UK where both national and London HEETS offtake shares continue to grow, with the latter reaching almost 4% in the quarter. We show here select key cities which demonstrate the strong traction of IQOS, and the excellent potential for national shares across the Region. I also refer you to the appendix where we show shares for key EU markets and global key cities.

(SLIDE 24.)

Strong performance continued in Russia, with our HTU share up by 2.2 points to reach a record 7.2% in Q4. As with the EU Region, we highlight the effects of the seasonality in the combustible category on quarterly shares. The seasonal fluctuations in Russia can be significant, and we urge you to bear this in mind when reading our quarterly results in the future.

A notable success in the latter part of the year was the expansion of our product portfolio with LIL SOLID and Fiit consumables to cater to a broader range of adult smokers across the socio-economic spectrum. In both Russia and Ukraine, the majority of consumers purchasing a LIL device are new users, with this incrementality contributing to an acceleration in user acquisition, with high levels of conversion in line with IQOS. The volume of Fiit consumables sold is broadly commensurate with LIL device ownership, and at this early stage of commercialization both are small in the context of the IQOS business in these markets. However, while we have successfully uptraded many legal-age smokers in the medium price segment to IQOS, this

bodes well for our ability to reach consumers in certain markets in the medium and below price segments for whom purchasing power may be a barrier to entering the category.

(SLIDE 25.)

The IQOS brand also resonates strongly across the Eastern Europe Region. Rapid growth and excellent market shares are testament to our agile commercial model and the consumer appetite for smoke-free alternatives, even in markets with lower purchasing power, and again serve as very encouraging indicators for the continued progression of our national market shares.

(SLIDE 26.)

In Japan, our total reported share for heated tobacco units reached 22.1% in the fourth quarter, supported by line extensions for both Marlboro HeatSticks and HEETS such as the recent launch of Marlboro Black Menthol.

On a more representative total tobacco basis including cigarillos and adjusted for trade inventory movements, the share for our HTU brands increased by 2.9 points versus the prior year quarter, and by 1.2 points sequentially, to 20.0%. Both HEETS and Marlboro HeatSticks grew market share following the October price increase, highlighting the strength of our price-tiered portfolio. We are especially pleased by our Q4 offtake share in Tokyo which reached the milestone of 25% in December.

Q4, 2020 adjusted in-market sales volumes for our HTU brands grew 0.6% sequentially, which we regard as a strong performance given the pull-forward of consumer offtake into Q3 before the price increase. The overall heated tobacco category made up over 27% of the total tobacco market in Q4, with IQOS maintaining its high share of segment.

(SLIDE 27.)

We are especially pleased by our Q4 offtake share in Tokyo which reached the milestone of 25% in December. A very similar picture is seen in key cities across Japan, including Sendai. The Korean market has specific challenges around consumer misperceptions of the category, and while we continue working to address these issues, it's notable that Kuala Lumpur in Malaysia has already overtaken Seoul in market share terms, crossing double-digits in the third quarter.

(SLIDE 28.)

In addition to strong growth in existing markets, the geographic expansion of IQOS continues. We leveraged our digital capabilities to launch in 3 new markets: Estonia, Kuwait and the Maldives. This takes the total number of markets where IQOS is available for sale to 64, of which over half are outside the OECD.

(SLIDE 29.)

We continue the commercialization of IQOS VEEV, our new e-vapor product, with the first EU market launch in the Czech Republic in December. This follows lead market New Zealand in August 2020, and we will continue to enter new markets over 2021, including Italy and Finland in the coming weeks.

As we have said previously, the commercial infrastructure of IQOS allows us to deploy efficiently and at scale. Both the VEEV device and the consumables will be premium-positioned. We also place great importance on efforts to guard against youth access for all our products. As we roll out IQOS VEEV, we will be testing age verification technology in select markets.

(SLIDE 30.)

Switching now to sustainability, I want to again emphasize that our corporate strategy and our sustainability strategy are deeply aligned. ESG issues are business issues that serve as input to our long-term strategy, and sit at the core of our mission.

Despite the unprecedented challenges of the global pandemic, we have not deviated from our efforts to be a more sustainable company and we achieved a number of key milestones in 2020.

By replacing cigarettes with less harmful alternatives, we can significantly reduce the negative impact our products have on the health of our consumers. That’s why the core of our strategy focuses on addressing the impact of P (Product), the first and most critical pillar of our approach to sustainability. This is what differentiates our company and highlights our unique value proposition, as the final piece of our 'ESG + P' framework. Phasing out cigarettes remains our focus, and in 2020 we estimate a further 4.1 million legal-age smokers entered the smoke-free category with IQOS, with a total of 12.7 million now switched and stopped smoking.

We also show here some recent notable achievements across ESG, which we will come back to in more detail at investor day.

While there remains much work to do, we believe our transparency and detailed approach to sustainability materiality and disclosure makes PMI an excellent example of impact, which we are achieving through carefully embedding sustainability into business, and understanding it as an opportunity for innovation and growth; including our pioneering role in tobacco harm reduction. In other words, our transformation is a unique sustainability story, another topic we will return to next week.

(SLIDE 31.)

I will now turn to guidance for 2021, where we expect a significant recovery. The main unknown is the speed and shape of the global exit from the

pandemic. While COVID was clearly disruptive to our performance in 2020, it is not yet over and we must factor this uncertainty into our outlook for the coming year. With the roll-out of vaccines just starting and lockdown measures currently in place across many markets, we do not assume any meaningful change in the first quarter, where we also face an unfavorable 'pre-COVID' prior year comparison. Looking beyond this, there are clearly a range of outcomes and we are reflecting this by providing a range for our assumed organic growth in net revenues and EPS. These ranges assume that even in the event of prolonged restrictions, we will not see a return to the depressed consumption levels of Q2, 2020, which is consistent with our observations of a less severe impact in the second wave.

For Duty Free, a rebound in global travel is likely to lag the improvement of in-country mobility. Our guidance assumes no meaningful recovery in Duty Free this year.

Despite this assumption, we expect organic net revenue growth in the range of 4% to 7%, and organic adjusted diluted EPS growth of 9% to 11%, or 14% to 16% in dollar terms. This tighter range for EPS reflects the likely higher levels of growth investments in the event of a faster recovery, and thus our assumption is for at least 150 basis points of margin expansion in all scenarios within the range. This reflects the ongoing positive mix effect of IQOS in our business, and the accretion of cost efficiencies net of continued growth investments.

This projected organic EPS growth, including an estimated favorable currency impact of approximately 25 cents at prevailing rates, translates into an adjusted diluted EPS range of $5.90 to $6.00. This guidance does not assume share repurchases.

This guidance also assumes the achievement of our 3 year HTU shipment volume target of 90 to 100 billion units.

(SLIDE 32.)

Coming to some of the other key assumptions underpinning this guidance, we expect a total industry volume progression of flat to -3% depending on the speed and shape of recovery from the pandemic.

We expect to outperform the industry trend, driven by the share gains of IQOS, with a resulting PMI volume forecast of +1% to -2%.

This also incorporates a manageable excise outlook, including a positive structural change in Turkey, an above-average increase in Russia and the increase in Indonesia, in line with historic averages.

As I mentioned earlier, our combustible pricing power remains strong. However, given 2020 carry-over effects -- notably in Indonesia -- and the immediate aftermath of the COVID crisis, we assume combustible pricing of 2-3% in 2021, or around 4% excluding Indonesia. As in 2020, the biggest

driver of our top-line growth is likely to be the higher weight of the IQOS business, which has significantly higher average net revenue per unit.

As laid out in this morning's press release, we assume that our full-year effective tax rate will be around 22%, and assume that operating cash flow will grow strongly to around $11 billion, at prevailing exchange rates and subject to working capital requirements. As I already mentioned, we assume capital expenditures of around $0.8 billion.

(SLIDE 33.)

Let me now spend a moment on the expectations for the first quarter. Our organic net revenues are likely to be around stable to slightly down as we lap a strong Q1, 2020, which benefited from inventory build-up in March as the pandemic began to spread in many markets, in addition to being a largely COVID-free quarter.

This incorporates continued strong year-on-year growth in the shipment and IMS volumes of HTUs. Due to normal seasonal patterns and the lower number of selling days in Q1, we expect these volumes to be sequentially stable to slightly below Q4, 2020. We also expect strong sequential HTU share gains on both an underlying and reported basis compared to Q4, noting the seasonal factors in the combustible market I already mentioned.

We expect strong margin progression in Q1 primarily due to the positive mix effect of IQOS, and the effect of the cost efficiencies realized in 2020. We believe this should result in an organic adjusted diluted EPS growth of around 8%, which equates to around $1.40, including an estimated 9 cent favorable currency impact, at prevailing rates.

Looking beyond the first quarter, it will come as no surprise that the easier comparison in Q2 should enable higher-than-average year-over-year growth in volumes and net revenues.

(SLIDE 34.)

To conclude, our results were stronger than expected, with 7% organic EPS growth delivered in the tumult of 2020.

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

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

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

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

Our organization demonstrated extraordinary resilience this year, coping and growing admirably through one of the most challenging periods in recent history. At the same time, our business continues to transform, incorporating and leveraging new skills and capabilities.

In short, we look forward with confidence, and we will expand on these topics further at our virtual Investor Day on February 10. We look forward to seeing you there.

(SLIDE 35.)

Thank you. André, Jacek and I are now happy to answer your questions.

Q&A SESSION

(SLIDE 36.)

ANDRE CALANTZOPOULOS (CLOSING REMARKS AFTER Q&A)

Thank you for joining us today. We came through a tumultuous year in 2020 with robust results, and now look forward to a significant recovery in 2021. IQOS continues to grow strongly, with excellent momentum, and we expect a rebound in cigarette volumes over the next 1-2 years. We look forward to sharing more with you on our long-term growth prospects and strategy next week.

NICK ROLLI

That concludes our call today. If you have any follow-up questions, please contact the Investor Relations team. I remind you that our virtual investor day is next Wednesday February 10, starting at around 8.30am Eastern Time and concluding at approximately 1.30p.m. You can register for the webcast via our website at www.pmi.com/2021InvestorDay. Thank you again and have a nice day.

Delivering a Smoke-Free Future 2020 Fourth-Quarter and Full-Year Results February 4, 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 devices and consumables • Comparisons presented on a like-for-like basis reflect pro forma 2019 results, which have been adjusted for the deconsolidation of our Canadian subsidiary, Rothmans, Benson & Hedges, Inc. (RBH), effective March 22, 2019 • Growth rates presented on an organic basis reflect currency-neutral underlying results and "like-for-like" comparisons, where applicable 2 Exhibit 99.3

Forward-Looking and Cautionary Statements • This presentation and related discussion contain projections of future results and other forward-looking statements. Achievement of future results is subject to risks, uncertainties and inaccurate assumptions. In the event that risks or uncertainties materialize, or underlying assumptions prove inaccurate, actual results could vary materially from those contained in such forward-looking statements. Pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, PMI is identifying important factors that, individually or in the aggregate, could cause actual results and outcomes to differ materially from those contained in any forward-looking statements made by PMI • PMI's business risks include: excise tax increases and discriminatory tax structures; increasing marketing and regulatory restrictions that could reduce our competitiveness, eliminate our ability to communicate with adult consumers, or ban certain of our products; health concerns relating to the use of tobacco and other nicotine-containing products and exposure to environmental tobacco smoke; litigation related to tobacco use and intellectual property; intense competition; the effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; changes in adult smoker behavior; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations, and limitations on the ability to repatriate funds; adverse changes in applicable corporate tax laws; adverse changes in the cost and quality of tobacco and other agricultural products and raw materials; and the integrity of its information systems and effectiveness of its data privacy policies. PMI's future profitability may also be adversely affected should it be unsuccessful in its attempts to produce and commercialize reduced-risk products or if regulation or taxation do not differentiate between such products and cigarettes; if it is unable to successfully introduce new products, promote brand equity, enter new markets or improve its margins through increased prices and productivity gains; if it is unable to expand its brand portfolio internally or through acquisitions and the development of strategic business relationships; or if it is unable to attract and retain the best global talent. Future results are also subject to the lower predictability of our reduced-risk product category's performance • PMI is further subject to other risks detailed from time to time in its publicly filed documents, including the Form 10-Q for the quarter ended September 30, 2020. PMI cautions that the foregoing list of important factors is not a complete discussion of all potential risks and uncertainties. PMI does not undertake to update any forward-looking statement that it may make from time to time, except in the normal course of its public disclosure obligations 3 Forward-Looking and Cautionary Statements (COVID-19) • The COVID-19 pandemic has created significant societal and economic disruption, and resulted in closures of stores, factories and offices, and restrictions on manufacturing, distribution and travel, all of which will adversely impact our business, results of operations, cash flows and financial position during the continuation of the pandemic • Our business continuity plans and other safeguards in place may not be effective to mitigate the impact of the pandemic. Currently, significant risks include our diminished ability to convert adult smokers to our RRPs, significant volume declines in our duty-free business and certain other key markets, disruptions or delays in our manufacturing and supply chain, increased currency volatility, and delays in certain cost saving, transformation and restructuring initiatives. Our business could also be adversely impacted if key personnel or a significant number of employees or business partners become unavailable due to the COVID-19 outbreak. The significant adverse impact of COVID-19 on the economic or political conditions in markets in which we operate could result in changes to the preferences of our adult consumers and lower demand for our products, particularly for our mid-price or premium-price brands. Continuation of the pandemic could disrupt our access to the credit markets or increase our borrowing costs. Governments may temporarily be unable to focus on the development of science-based regulatory frameworks for the development and commercialization of RRPs or on the enforcement or implementation of regulations that are significant to our business. In addition, messaging about the potential negative impacts of the use of our products on COVID-19 risks may lead to increasingly restrictive regulatory measures on the sale and use of our products, negatively impact demand for our products, the willingness of adult consumers to switch to our RRPs and our efforts to advocate for the development of science-based regulatory frameworks for the development and commercialization of RRPs • The impact of these risks also depends on factors beyond our knowledge or control, including the duration and severity of the outbreak, its recurrence in our key markets, actions taken to contain its spread and to mitigate its public health effects, and the ultimate economic consequences thereof 4

Robust Performance in 2020 Despite the Pandemic • Strong growth for IQOS:⎼ Accelerated H2 user acquisition to reach an estimated 17.6 million⎼ Record Q4 HTU shares in key IQOS geographies • Combustible business most impacted by restrictions • Excellent organic margin expansion and EPS growth, driven by IQOS • Strong cash generation • Broadened smoke-free portfolio with wider range of consumables and devices • Growing recognition of IQOS public health benefits 5Source: PMI Financials or estimates, IQOS user panels and PMI Market Research 6 Net Revenues Adjusted Diluted EPS Adjusted OI Margin Full Year, 2020: Strong Margin and EPS Growth (Organic variance vs. PY) +240bps 7.0% (1.6)% Net Revenue per Unit(a) 6.9% (a) Reflects total PMI net revenues divided by total PMI cigarette and HTU shipment volume Source: PMI Financials or estimates

(a) Reflects total PMI net revenues divided by total PMI cigarette and HTU shipment volume Source: PMI Financials or estimates 7 Q4, 2020: Similar Strong Dynamics as Full Year (Organic variance vs. PY) Net Revenues Adjusted Diluted EPS Adjusted OI Margin Net Revenue per Unit(a) 7.4% +200bps 5.2% (3.5)% Q4, 2020: Strong Underlying Finish to the Year • Record HTU shipment volumes with strong finish in Japan • Impact of tightening social restrictions less severe than Q2, 2020 • Mid-single digit top-line growth in ‘IQOS’ regions(a) • Continued challenges in Indonesia and Duty Free • Total market lower in the Philippines post-price increase • Improved top-line performance expected in Q1, 2021 despite pandemic and tough prior year comparison 8 (a) European Union, Eastern Europe and East Asia & Australia Source: PMI Financials or estimates

9 +1.2pp +0.9pp 64.6 % 66.6% 66.7% 2019 2020 (Excluding Currency) 2020 Currency (a) Pro forma: excluding Gross Profit Margin impact attributable to RBH (+0.1pp) from January 1, 2019 to March 21, 2019 (b) Includes productivity savings in manufacturing, procurement and supply chain operations Source: PMI Financials or estimates 2020: Multiple Levers Driving Higher Gross Margin +0.1pp +1.0pp (0.9)pp (0.2)pp HTU Mix and Price Impact Combustible Pricing Manufacturing Productivity(b) Combustible Volume Mix / Other Devices (a) 10 +0.9pp (0.4)pp 25.1% 24.7% 25.6% 2019 2020 (Excluding Currency) 2020 2020: Cost Efficiencies Support Organic Margin Expansion SG&A / Other Currency Marketing, Admin. & Research Costs (as a % of Net Revenues) (a) Pro forma: excluding impact attributable to RBH (-0.1pp) from January 1, 2019 to March 21, 2019 Note: Variances are vs. prior year as a percentage of net revenues 2019 excludes asset impairment and exit costs ($422million), Russia excise and VAT audit charge ($374 million), the Canadian tobacco litigation-related expense ($194 million) and the loss on deconsolidation of RBH ($239 million) totaling $1,229 million (refer to slide 54) 2020 excludes asset impairment and exit costs ($149 million) offset by a Brazil indirect tax credit $119 million totaling $30 million (refer to slide 54) Source: PMI Financials or estimates (a)

Reached 2019-21 Cost Target of $1bn+ in Only 2 Years • Manufacturing productivity, device costs: $0.8bn annualized gross savings in 19-20:⎼ Productivities across RRP and combustibles⎼ More than offsetting inflation, supply chain investments and negative combustible volumes • SG&A savings: $0.3bn annualized gross savings in 19-20:⎼ Commercial efficiencies from shift to digital and remote engagement⎼ Efficiency on G&A cost management through automation, simplification, shared service centers, project-based working • Supporting reinvestment to drive IQOS growth, and margin expansion • Cost savings do not include net efficiencies linked to COVID, e.g., reduced travel costs 11Source: PMI Financials or estimates Delivered $10 Billion of Operating Cash Flow in 2020 • Better than expected cash generation • Operating cash flow +3.5% on a like-for- like, ex-currency basis • Capital expenditures of $0.6 billion, benefiting from performance improvements and timing of investments • Raised quarterly dividend to an annualized rate of $4.80 per share (a) Includes operating cash flow of $102 million attributable to RBH from January 1, 2019 to March 21, 2019 (refer to slide 64) Note: Operating cash flow is defined as net cash provided by operating activities Source: PMI Financials or estimates 10.1 9.8 2019 2020 PMI Operating Cash Flow ($ in billions) 12 FX impact 0.5 10.3 (a)

Industry Volume Impacted by COVID 13 (a) Cigarettes and HTUs, excluding China and the U.S. Source: PMI Financials or estimates (2-3)% (5.8)% Average Historical Decline Total Industry Volume(a) (Change vs. PY) • Difference to historic trend largely attributable to COVID • Outsized impact on Duty-Free and markets with high number of daily wage workers • Expect daily consumption to gradually recover as pandemic recedes 2020 (a) Pro forma: excluding volume attributable to RBH from January 1, 2019 to March 21, 2019 Source: PMI Financials or estimates 14 705.7 628.5 59.7 76.1 765.4 704.6 FY, 2019 FY, 2020 Total PMI Shipment Volume (billion units) HTUs Cigarettes Total 27.6% (10.9)% (7.9)% 27.5% In-Market Sales (10.8)% (7.8)% Change vs. PY (a)

Well On Track to Deliver HTU Shipment Volume Target of 90 to 100 Billion Units in 2021 Source: PMI Financials or estimates 76 billion units in 2020 15 +27.6% vs. PY HTUs Now Comprise Over 10% of Total Volume (as a % of PMI Total Shipment Volume) 16Source: PMI Financials or estimates 0.0% 0.9% 4.5% 5.3% 7.8% 10.8% 2015 2016 2017 2018 2019 2020 7.4 59.7 PMI HTU Shipment Volume (billion units) 41.436.20.4 76.1 12.3% Q4 2020

Source: PMI Financials or estimates 17 Growing Contribution of IQOS to Net Revenues (as a % of Total PMI Net Revenues) 0.2% 2.7% 12.7% 13.8% 18.7% 23.8% 2015 2016 2017 2018 2019 2020 $0.7 $6.8$4.1$3.6$0.1 $5.6 RRP Net Revenues ($ in billions) 26.0% Q4 2020 PMI Total International Market Volume Share 18 +0.8pp (0.6)pp (0.5)pp (0.3)pp 28.4% 28.6% 27.7% 2019 2020 (a) HTUs include a (0.1)pp impact of Duty Free HTUs Note: Excluding China and the U.S. Current view (reflecting the deconsolidation of RBH, PMI’s total market share has been restated for previous periods). Sales volume of PMI cigarettes and HTUs as a percentage of the total industry sales volume for cigarettes and HTUs. Sum of the drivers does not foot due to rounding Source: PMI Financials or estimates Cigarettes excluding Duty Free and Indonesia Duty Free Cigarettes Indonesia HTUs (a)

30.3 28.2 28.2 28.3 Indonesia: Challenges Moderating into 2021 19Source: PMI Financials or estimate • PMI share stable over recent quarters • New excise rates from Feb 1; no increase on hand-rolled kretek (SKT) where we lead the segment • No structural reform at this stage • Majority of industry now above minimum price levels • Gradually improving shipments; daily consumption still below pre-COVID levels • Less negative industry volume evolution expected in ‘21 PMI Share of Market (%) 74%75%78% Industry SKT SoM (%) PMI SKT SoS (%) 36.1 36.0 38.7 38.0 17.9 19.1 20.2 20.3 Q1 Q2 Q3 Q4 Rebound in Cigarette Category Expected • Assume negative COVID impact on industry volumes to reverse over 2021-22 • Price elasticities fundamentally unchanged • Our combustible portfolio is sufficiently invested; incrementally more may be needed given COVID impacts:⎼ Continue investing in Marlboro brand equity⎼ Focus on price gap management⎼ Grow share of low-price segment • Combustible pricing remains important • As IQOS volumes grow, our overall price productivity increases 20

(a) See Glossary for definition Source: PMI Financials or estimates, IQOS user panels and PMI Market Research Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Approaching 18 Million Users in 2020 21 20202019 0.8 0.8 1.0 1.3 0.9 0.9 1.1 1.2 Sequential Change vs. Previous Quarter Total IQOS Users(a) Estimated users who have switched to IQOS and stopped smoking(a) Estimated users who are in various stages of conversion(a) 17.6 16.4 15.3 14.4 13.5 12.2 11.2 10.4 70% 70% 71% 71% 73% 72% 72% 72% EU Region: Continued HEETS Share Growth 22 3.2% 3.9% 3.9% 3.9% 5.0% Q4 Q1 Q2 Q3 Q4 (a) Excluding the estimated impact of retailer inventory movements and consumer pantry loading (the latter primarily impacting Q1, 2020) Source: PMI Financials or estimates 10.8% Sequential Adjusted IMS Growth(a) 14.6%11.2%9.1%15.1% 20202019

Source: PMI Financials or estimates EU: Strong HEETS Growth in Key Cities (HEETS city offtake share) 23 Munich London RomeLisbon PragueAthens Warsaw Vilnius 16.5% 19.8% Q4 2019 Q4 2020 8.7% 13.2% Q4 2019 Q4 2020 1.6% 3.8% Q4 2019 Q4 2020 4.4% 6.6% Q4 2019 Q4 2020 13.7% 16.5% Q4 2019 Q4 2020 10.7% 16.4% Q4 2019 Q4 2020 28.4% 34.5% Q4 2019 Q4 2020 10.5% 13.8% Q4 2019 Q4 2020 (a) Excluding the estimated impact of retailer inventory movements Source: PMI Financials or estimates Russia: Continued Strong PMI HTU Share Growth 24 5.0% 6.5% 6.0% 5.8% 7.2% Q4 Q1 Q2 Q3 Q4 9.8% Sequential Adjusted IMS Growth(a) 8.7%8.5%15.5%22.8% 20202019

(a) Estimated underlying offtake share Source: PMI Financials or estimates Eastern Europe: Excellent Share in Key Cities (PMI HTU city offtake share) 25 Kiev MoscowAlmaty (a) TbilisiMinsk Sarajevo 13.1% 17.4% Q4 2019 Q4 2020 13.6% 22.8% Q4 2019 Q4 2020 2.3% 5.9% Q4 2019 Q4 2020 13.5% 14.6% Q4 2019 Q4 2020 3.6% 8.6% Q4 2019 Q4 2020 6.1% Q4 2020 17.7% 19.1% 20.2% 20.4% 22.1% Q4 Q1 Q2 Q3 Q4 (a) Excluding the impact of estimated trade inventory movements, and including the cigarillo category Source: PMI Financials or estimates Japan: Continuing PMI HTU Share Growth 26 20.0% Adjusted SoM(a) 18.8%18.7%17.8%17.1% 20202019

(a) Japan total market includes the cigarillo category Note: Kuala L. is Kuala Lumpur Source: PMI Financials or estimates East Asia: Strong Traction in Key Cities (PMI HTU city offtake share) 27 Tokyo(a) Seoul Sendai(a) Kuala L. 20.6% 24.9% Q4 2019 Q4 2020 21.2% 24.6% Q4 2019 Q4 2020 9.5% 10.0% Q4 2019 Q4 2020 7.9% 12.1% Q4 2019 Q4 2020 IQOS Geographic Expansion 28 Market Launches 2019 (8) 2015 (7) 2016 (13) 2017 (18) 2018 (6) 2020 (12) (a) Status at December 31, 2020 Note: Reflects markets where IQOS is available in key cities or nationwide. Reflects date of initial geographic expansion beyond pilot launch city. The number of markets includes International Duty Free. While IQOS is currently available for sale in Mexico, the country has banned the importation of e-cigarettes and devices that heat tobacco 64 Markets Worldwide(a) Of which 33 Non-OECD

Rolling Out IQOS VEEV • Czech Republic first EU launch in December 2020 • Entering further markets in 2021 including Italy and Finland in coming weeks • Leveraging IQOS commercial infrastructure • Premium-positioned devices and cartridges • Testing age verification technology 29 Major Sustainability Milestones in 2020 Product • 12.7 million legal-age smokers switched to IQOS and stopped smoking • Pioneering role in Tobacco harm reduction • Outperformed on DJSI(a), leading on technology and innovation Environment • CDP Triple-A rated • Validation of new science based targets with the 1.5°C scenario (SBTi(b)) • Well on track to achieving carbon neutrality (scope 1+2) by 2030 Social • 100% of PMI’s portfolio of electronic smoke-free devices to be equipped with age-verification technology by 2023 • DJSI(a) leading on human rights • Included in Bloomberg Gender Equality Index Governance • Appointment of Chief Diversity Officer, reporting to CEO • Sustainability moves under Finance, reporting to CFO • Statement of Purpose, issued by BoD • Issued first Integrated Report 30 (a) Dow Jones Sustainability Index (b) Science Based Targets initiative, 1.5°C scenario refers to setting net-zero carbon emissions targets in line with limiting global average temperatures to 1.5°C above pre-industrial levels

v Source: PMI Financials or estimates Significant Recovery Expected in 2021 (Organic basis) • Adjusted diluted EPS range of $5.90 to $6.00, representing 14-16% growth in dollar terms:⎼ Includes an estimated favorable currency impact of approximately 25 cents at prevailing rates⎼ Does not assume share repurchases 31 FY 2021 Net Revenue Growth 4-7% Adjusted OI Margin Expansion ≥150bps Adjusted Diluted EPS Growth 9-11% HTU Shipment Volume 90-100 billion v Note: Operating cash flow is defined as net cash provided by operating activities Source: PMI Financials or estimates 2021: Key Assumptions 32 Total Industry Volume Flat to -3% PMI Total Shipment Volume +1% to -2% Effective Tax Rate ~22% Operating Cash Flow ~$11.0 bn Capital Expenditures ~$0.8 bn

Source: PMI Financials or estimates Q1, 2021: Outlook • Organic net revenues stable to slightly down vs. prior year • HTU shipments & IMS continued strong growth on prior year, stable to slightly below Q4 due to selling days and seasonality • Strong margin growth driven by IQOS mix effect and cost efficiencies • Adjusted diluted EPS of ~$1.40 representing organic growth of ~8% 33 Superior, Sustainable Growth Prospects • Robust 2020 performance; ahead of revised expectations • Multiple growth drivers through shift to IQOS, pricing and cost efficiencies • Strong leadership of the combustible category • Product offer and innovation to step up in 2021 • ESG at the heart of our smoke-free strategy • Resilient and transforming organization • Confident in the future 34Source: PMI Financials or estimates

Delivering a Smoke-Free Future 2020 Fourth-Quarter and Full-Year Results Questions & Answers Delivering a Smoke-Free Future 2020 Fourth-Quarter and Full-Year Results February 4, 2021

37 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 • Until March 28, 2008, PMI was a wholly owned subsidiary of Altria Group, Inc. ("Altria"). Since that time the company has been independent and is listed on the New York Stock Exchange (ticker symbol "PM") • "RBH" refers to PMI’s Canadian subsidiary, Rothmans, Benson & Hedges Inc. • The Companies’ Creditors Arrangement Act (CCAA) is a Canadian federal law that permits a Canadian business to restructure its affairs while carrying on its business in the ordinary course • Trademarks are italicized • Comparisons are made to the same prior-year period unless otherwise stated • Unless otherwise stated, references to total industry, total market, PMI shipment volume and PMI market share performance reflect cigarettes and heated tobacco units • References to total international market, defined as worldwide cigarette and heated tobacco unit volume excluding the U.S., total industry, total market and market shares are PMI estimates for tax-paid products based on the latest available data from a number of internal and external sources and may, in defined instances, exclude the People's Republic of China and/or PMI's duty free business. In addition, to reflect the deconsolidation of PMI's Canadian subsidiary, Rothmans, Benson & Hedges, Inc. (RBH), effective March 22, 2019, PMI's total market share has been restated for previous periods • 2020 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 38

Glossary: General Terms (cont.) • "EU" is defined as the European Union Region • "EE" is defined as the Eastern Europe Region • "ME&A" is defined as the Middle East & Africa Region and includes PMI's duty free business • "S&SA" is defined as the South & Southeast Asia Region • "EA&A" is defined as the East Asia & Australia Region • "LA&C" is defined as the Latin America & Canada Region • Following the deconsolidation of PMI's Canadian subsidiary, Rothmans, Benson & Hedges, Inc. (RBH), PMI will continue to report the volume of brands sold by RBH for which other PMI subsidiaries are the trademark owner. These include HEETS, Next, Philip Morris and Rooftop • From time to time, PMI’s shipment volumes are subject to the impact of distributor inventory movements, and estimated total industry/market volumes are subject to the impact of inventory movements in various trade channels that include estimated trade inventory movements of PMI’s competitors arising from market-specific factors that significantly distort reported volume disclosures. Such factors may include changes to the manufacturing supply chain, shipment methods, consumer demand, timing of excise tax increases or other influences that may affect the timing of sales to customers. In such instances, in addition to reviewing PMI shipment volumes and certain estimated total industry/market volumes on a reported basis, management reviews these measures on an adjusted basis that excludes the impact of distributor and/or estimated trade inventory movements. Management also believes that disclosing PMI shipment volumes and estimated total industry/market volumes in such circumstances on a basis that excludes the impact of distributor and/or estimated trade inventory movements, such as on an IMS basis, improves the comparability of performance and trends for these measures over different reporting periods • "Illicit trade" refers to domestic non-tax paid products • "SoM" stands for share of market • "ESG" stands for environmental, social, and governance • "OECD" is defined as Organisation for Economic Co-operation and Development 39 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 • "SG&A" stands for selling, general & administrative • "Adjusted Operating Income (OI) Margin" is calculated as adjusted OI, divided by net revenues • "Net debt" is defined as total debt, less cash and cash equivalents • Growth rates presented on an organic basis for consolidated financial results reflect currency-neutral underlying results and "like-for-like" comparisons, where applicable • Management reviews net revenues, OI, OI margins, operating cash flow and earnings per share, or "EPS," on an adjusted basis, which may exclude the impact of currency and other items such as acquisitions, asset impairment and exit costs, tax items and other special items. Organic growth rates reflect the way management views underlying performance for these measures. PMI believes that such measures, including pro forma measures, will provide useful insight into underlying business trends and results, and will provide a more meaningful performance comparison for the period during which RBH remains under CCAA protection. For PMI's 2018 pro forma adjusted diluted EPS by quarter and year-to-date, see Schedule 3 in PMI’s third-quarter 2019 earnings release • "Fair value adjustment for equity security investments" reflects the adjustment resulting from share price movements in passive investments for publicly traded entities that are not controlled or influenced by PMI. Under U.S. GAAP, such adjustments are required, since January 1, 2018, to be reflected directly in the income statement 40

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 41 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 42

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 43 Key Cities Provide Excellent Base for Growth 44 (a) Japan total market includes the cigarillo category Note: Kuala L. is Kuala Lumpur Source: PMI Financials or estimates 34.5% 24.9% 22.8% 19.8% 17.1% 16.5% 16.4% 14.6% 13.8% Vilnius Tokyo Kiev Athens Bratislava Prague Rome Moscow Warsaw 13.2% 12.1% 11.7% 10.0% 6.6% 6.3% 6.0% 3.8% 2.1% Lisbon Kuala L. Milan Seoul Munich Zurich Bucharest London Madrid +6.1pp +3.3pp +3.9pp +2.8pp +5.7pp +3.3pp +4.5pp +0.5pp +2.2pp +3.0pp +0.8pp +0.6pp PMI HTU Offtake Shares (Q4, 2020) +2.2pp +1.1pp Change vs. PY (a) +4.3pp +9.2pp +4.2pp +3.4pp

Key Cities Provide Excellent Base for Growth 45 (a) Japan total market includes the cigarillo category Note: Kuala L. is Kuala Lumpur Source: PMI Financials or estimates 30.7% 23.3% 18.4% 17.6% 15.3% 15.5% 14.5% 14.0% 12.1% Vilnius Tokyo Kiev Athens Bratislava Prague Moscow Rome Warsaw 11.1% 10.1% 10.0% 9.9% 6.2% 5.8% 5.0% 2.9% 1.9% Lisbon Milan Kuala L. Seoul Munich Bucharest Zurich London Madrid +7.6pp +3.7pp +2.5pp +2.7pp +3.7pp +4.6pp +3.4pp (0.1)pp +2.6pp +0.8pp +2.2pp +0.6pp PMI HTU Offtake Shares (FY, 2020) +1.9pp +5.3pp Change vs. PY (a) +2.9pp +6.9pp +3.7pp +3.5pp 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 46 Q4, 2020 Growth vs. PY Q4, 2020 Growth vs. PY Q4, 2020 Growth vs. PY Croatia 5.8% +1.8pp Italy 9.6% +3.5pp Romania 3.3% +0.9pp Czech Republic 10.2 +3.0 Latvia 14.7 +7.0 Slovak Republic 10.2 +2.7 Germany 2.6 +1.0 Lithuania 22.8 +5.3 Slovenia 6.3 +2.6 Greece 13.1 +2.6 Poland 7.4 +3.6 Switzerland 4.6 +1.7 Hungary 13.3 +9.0 Portugal 10.9 +3.6 UK 1.8 +1.2

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 47 FY, 2020 Growth vs. PY FY, 2020 Growth vs. PY FY, 2020 Growth vs. PY Croatia 4.7% +1.4pp Italy 8.1% +3.3pp Romania 2.9% +0.6pp Czech Republic 9.2 +3.3 Latvia 11.6 +6.2 Slovak Republic 9.3 +2.5 Germany 2.2 +1.0 Lithuania 20.6 +6.5 Slovenia 5.0 +1.9 Greece 11.5 +2.8 Poland 5.2 +2.7 Switzerland 3.9 +1.3 Hungary 9.8 +7.9 Portugal 8.9 +2.7 UK 1.2 +0.8 Source: PMI Financials or estimates 2021: EPS Guidance ($/share) 48 Full-Year ≥ 2021 Forecast 2020 Organic Growth Reported Diluted EPS $5.90 – $6.00 $5.16 - Tax items (0.06) - Asset impairment and exit costs 0.08 - Brazil indirect tax credit (0.05) - Fair value adjustment for equity security investments 0.04 Adjusted Diluted EPS $5.90 – $6.00 $5.17 - Currency (0.25) Adjusted Diluted EPS, excluding currency $5.65 – $5.75 $5.17 9% – 11%

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures 49 Reconciliation of Reported Diluted EPS to Reported Diluted EPS, excluding Currency, and Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS, excluding Currency (Unaudited) Quarters Ended December 31, 2020 2019 % Change 2020 2019 % Change $ 1.27 $ 1.04 22.1% Reported Diluted EPS $ 5.16 $ 4.61 11.9% (0.05) Less: Currency (0.32) $ 1.32 $ 1.04 26.9% Reported Diluted EPS, excluding Currency $ 5.48 $ 4.61 18.9% Quarters Ended December 31, 2020 2019 % Change 2020 2019 % Change $ 1.27 $ 1.04 22.1% Reported Diluted EPS $ 5.16 $ 4.61 11.9% 0.04 0.20 Asset impairment and exit costs 0.08 0.23 - - Canadian tobacco litigation-related expense - 0.09 - - Loss on deconsolidation of RBH - 0.12 - - Russia excise and VAT audit charge - 0.20 (0.05) - Brazil indirect tax credit (0.05) - - (0.02) Fair value adjustment for equity security investments 0.04 (0.02) - - Tax items (0.06) (0.04) $ 1.26 $ 1.22 3.3% Adjusted Diluted EPS $ 5.17 $ 5.19 (0.4)% (0.05) Less: Currency (0.32) $ 1.31 $ 1.22 7.4% Adjusted Diluted EPS, excluding Currency $ 5.49 $ 5.19 5.8% Years Ended December 31, Years Ended December 31, PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures 50 Years Ended December 31, 2020 2019 % Change Adjusted Diluted EPS $ 5.17 $ 5.19 (0.4)% Net earnings attributable to RBH (0.06) Adjusted Diluted EPS $ 5.17 $ 5.13 0.8% Currency (0.32) Adjusted Diluted EPS, excluding Currency $ 5.49 $ 5.13 7.0% (a) For the calculation, see previous slide (b) Represents the impact attributable to RBH from January 1, 2019 to March 21, 2019 (c) Pro forma Adjustments for the Impact of RBH, excluding Currency (Unaudited) (c) (c) (a) (b)

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) 51 (a) Net Revenues include revenues from shipments of Platform 1 devices, heated tobacco units and accessories to Altria Group, Inc., commencing in the third quarter of 2019, for sale under license in the United States Note: Sum of Regions might not foot to Total PMI due to rounding; "-" indicates amounts between -$0.5 million and +$0.5 million Net Revenues Currency Net Revenues excluding Currency Acquisitions Net Revenues excluding Currency & Acquisitions Years Ended December 31, Net Revenues Total Excluding Currency Excluding Currency & Acquisitions 2020 Reduced-Risk Products 2019 % Change $ 2,649 $ 8 $ 2,641 $ - $ 2,641 European Union $ 1,724 53.7% 53.2% 53.2% 1,128 (98) 1,226 - 1,226 Eastern Europe 844 33.6% 45.2% 45.2% 57 - 57 - 57 Middle East & Africa 321 (82.4)% (82.3)% (82.3)% 1 - 1 - 1 South & Southeast Asia - - - - 2,961 32 2,929 - 2,929 East Asia & Australia 2,671 10.9% 9.7% 9.7% 31 (2) 34 - 34 Latin America & Canada(a) 27 18.0% 25.8% 25.8% $ 6,827 $ (61) $ 6,888 $ - $ 6,888 Total RRPs $ 5,587 22.2% 23.3% 23.3% 2020 PMI 2019 % Change $ 10,702 $ 21 $ 10,681 $ - $ 10,681 European Union $ 9,817 9.0% 8.8% 8.8% 3,378 (263) 3,641 - 3,641 Eastern Europe 3,282 2.9% 10.9% 10.9% 3,088 (77) 3,165 - 3,165 Middle East & Africa 4,042 (23.6)% (21.7)% (21.7)% 4,396 (19) 4,415 - 4,415 South & Southeast Asia 5,094 (13.7)% (13.3)% (13.3)% 5,429 33 5,396 - 5,396 East Asia & Australia 5,364 1.2% 0.6% 0.6% 1,701 (164) 1,865 - 1,865 Latin America & Canada 2,206 (22.9)% (15.5)% (15.5)% $ 28,694 $ (469) $ 29,163 $ - $ 29,163 Total PMI $ 29,805 (3.7)% (2.2)% (2.2)% 52 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) Net Revenues include revenues from shipments of Platform 1 devices, heated tobacco units and accessories to Altria Group, Inc., commencing in the third quarter of 2019, for sale under license in the United States Note: Sum of Regions might not foot to Total PMI due to rounding; "-" indicates amounts between -$0.5 million and +$0.5 million Net Revenues Currency Net Revenues excluding Currency Acquisitions Net Revenues excluding Currency & Acquisitions Quarters Ended December 31, Net Revenues Total Excluding Currency Excluding Currency & Acquisitions 2020 Reduced-Risk Products 2019 % Change $ 789 $ 42 $ 746 $ - $ 746 European Union $ 482 63.6% 54.8% 54.8% 339 (53) 392 - 392 Eastern Europe 319 6.3% 23.1% 23.1% 5 - 5 - 5 Middle East & Africa 74 (93.3)% (93.2)% (93.2)% 1 - 1 - 1 South & Southeast Asia - - - - 792 19 774 - 774 East Asia & Australia 651 21.8% 18.9% 18.9% 11 - 12 - 12 Latin America & Canada(1) 8 31.1% 37.0% 37.0% $ 1,937 $ 7 $ 1,930 $ - $ 1,930 Total RRPs $ 1,534 26.3% 25.8% 25.8% 2020 PMI 2019 % Change $ 2,742 $ 151 $ 2,591 $ - $ 2,591 European Union $ 2,436 12.6% 6.4% 6.4% 908 (118) 1,026 - 1,026 Eastern Europe 982 (7.5)% 4.5% 4.5% 740 (31) 771 - 771 Middle East & Africa 984 (24.8)% (21.6)% (21.6)% 1,185 5 1,180 - 1,180 South & Southeast Asia 1,487 (20.3)% (20.6)% (20.6)% 1,384 36 1,348 - 1,348 East Asia & Australia 1,270 9.0% 6.1% 6.1% 485 (43) 528 - 528 Latin America & Canada 554 (12.5)% (4.7)% (4.7)% $ 7,444 $ - $ 7,444 $ - $ 7,444 Total PMI $ 7,713 (3.5)% (3.5)% (3.5)%

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures 53 Adjustments for the Impact of RBH, excluding Currency ($ in millions) / (Unaudited) (a) Represents the impact attributable to RBH from January 1, 2019 to March 21, 2019 (b) Pro forma (a) % Change % Change Net Revenues $ 7,444 $ 7,713 (3.5)% $ 28,694 $ 29,805 (3.7)% Net Revenues attributable to RBH - (181) Net Revenues $ 7,444 $ 7,713 (3.5)% $ 28,694 $ 29,624 (3.1)% Less: Currency - (470) Net Revenues, ex. currency $ 7,444 $ 7,713 (3.5)% $ 29,164 $ 29,624 (1.6)% Quarters Ended December 31, Years Ended December 31, 2020 2019 2020 2019 (b) (b) 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) 54 (a) Represents asset impairment and exit costs (b) Includes the Brazil indirect tax credit $119 million and asset impairment and exit costs ($9 million) (c) Represents the Russia excise and VAT audit charge (d) Includes asset impairment and exit costs ($60 million), the Canadian tobacco litigation-related expense ($194 million) and the loss on deconsolidation of RBH ($239 million) 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 and Others Adjusted Operating Income Total Excluding Currency Excluding Currency & Acqui- sitions 2020 2019 $ 5,098 $ (57) $ 5,155 $ (24) $ 5,179 $ - $ 5,179 European Union $ 3,970 $ (342) $ 4,312 19.6% 20.1% 20.1% 871 (15) 886 (299) 1,185 - 1,185 Eastern Europe 547 (374) 921 (3.8)% 28.7% 28.7% 1,026 (19) 1,045 (65) 1,110 - 1,110 Middle East & Africa 1,684 - 1,684 (37.9)% (34.1)% (34.1)% 1,709 (23) 1,732 2 1,730 - 1,730 South & Southeast Asia 2,163 (20) 2,183 (20.7)% (20.8)% (20.8)% 2,400 (26) 2,426 21 2,405 - 2,405 East Asia & Australia 1,932 - 1,932 25.6% 24.5% 24.5% 564 110 454 (110) 564 - 564 Latin America & Canada 235 (493) 728 (37.6)% (22.5)% (22.5)% $ 11,668 $ (30) $ 11,698 $ (475) $ 12,173 $ - $ 12,173 Total PMI $ 10,531 $ (1,229) $ 11,760 (0.5)% 3.5% 3.5% % Change Years Ended December 31, (b) (a) (a) (a) (a) (a) (a) (c) (a) (d)

55 PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Operating Income to Adjusted Operating Income, excluding Currency and Acquisitions ($ in millions) / (Unaudited) 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 2020 2019 $ 1,174 $ (30) $ 1,204 $ 83 $ 1,121 $ - European Union $ 624 $ (342) 24.6% 16.0% 16.0% 261 (8) 269 (91) 360 - Eastern Europe 263 - 2.3% 36.9% 36.9% 207 (10) 217 (36) 253 - Middle East & Africa 380 - (42.9)% (33.4)% (33.4)% 419 (12) 431 2 429 - South & Southeast Asia 692 - (37.7)% (38.0)% (38.0)% 608 (13) 621 19 602 - East Asia & Australia 412 - 50.7% 46.1% 46.1% 236 114 122 (25) 147 - Latin America & Canada 135 (15) (18.7)% (2.0)% (2.0)% $ 2,905 $ 41 $ 2,864 $ (48) $ 2,912 $ - Total PMI $ 2,506 $ (357) - 1.7% 1.7% % Change Quarters Ended December 31, (a) Represents asset impairment and exit costs (b) Includes the Brazil indirect tax credit $119 million and asset impairment and exit costs ($5 million) (b) (a) (a) (a) (a) (a) (a) (a) PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures 56 Adjustments for the Impact of RBH, excluding Currency ($ in millions) / (Unaudited) (a) Represents the impact attributable to RBH from January 1, 2019 to March 21, 2019 (b) Pro forma Years Ended December 31, 2020 2019 % Change Operating Income $ 11,668 $ 10,531 10.8% Asset impairment and exit costs (149) (422) Canadian tobacco litigation-related expense - (194) Loss on deconsolidation of RBH - (239) Russia excise and VAT audit charge - (374) Brazil indirect tax credit 119 - Adjusted Operating Income $ 11,698 $ 11,760 (0.5)% Operating Income attributable to RBH (126) Adjusted Operating Income $ 11,698 $ 11,634 0.6% Currency (474) Adjusted Operating Income, excluding Currency $ 12,172 $ 11,634 4.6% (a) (b) (b)

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Adjusted Operating Income Margin, excluding Currency and Acquisitions ($ in millions) / (Unaudited) 57 (a) For the calculation of Adjusted Operating Income and Adjusted Operating Income excluding currency and acquisitions refer to slide 54 (b) For the calculation of Net Revenues excluding currency and acquisitions refer to slide 51 Adjusted Operating Income (a) Net Revenues Adjusted Operating Income Margin Adjusted Operating Income excluding Currency (a) Net Revenues excluding Currency (b) Adjusted Operating Income Margin excluding Currency Adjusted Operating Income excluding Currency & Acqui- sitions (a) Net Revenues excluding Currency & Acqui- sitions (b) Adjusted Operating Income Margin excluding Currency & Acqui- sitions Adjusted Operating Income (a) Net Revenues Adjusted Operating Income Margin Adjusted Operating Income Margin Adjusted Operating Income Margin excluding Currency Adjusted Operating Income Margin excluding Currency & Acqui- sitions 2020 2019 % Points Change $ 5,155 $ 10,702 48.2% $ 5,179 $ 10,681 48.5% $ 5,179 $ 10,681 48.5% European Union $ 4,312 $ 9,817 43.9% 4.3 4.6 4.6 886 3,378 26.2% 1,185 3,641 32.5% 1,185 3,641 32.5% Eastern Europe 921 3,282 28.1% (1.9) 4.4 4.4 1,045 3,088 33.8% 1,110 3,165 35.1% 1,110 3,165 35.1% Middle East & Africa 1,684 4,042 41.7% (7.9) (6.6) (6.6) 1,732 4,396 39.4% 1,730 4,415 39.2% 1,730 4,415 39.2% South & Southeast Asia 2,183 5,094 42.9% (3.5) (3.7) (3.7) 2,426 5,429 44.7% 2,405 5,396 44.6% 2,405 5,396 44.6% East Asia & Australia 1,932 5,364 36.0% 8.7 8.6 8.6 454 1,701 26.7% 564 1,865 30.2% 564 1,865 30.2% Latin America & Canada 728 2,206 33.0% (6.3) (2.8) (2.8) $ 11,698 $ 28,694 40.8% $ 12,173 $ 29,163 41.7% $ 12,173 $ 29,163 41.7% Total PMI $ 11,760 $ 29,805 39.5% 1.3 2.2 2.2 Years Ended December 31, 58 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 (a) Net Revenues Adjusted Operating Income Margin Adjusted Operating Income excluding Currency (a) Net Revenues excluding Currency (b) Adjusted Operating Income Margin excluding Currency Adjusted Operating Income excluding Currency & Acqui- sitions (a) Net Revenues excluding Currency & Acqui- sitions (b) Adjusted Operating Income Margin excluding Currency & Acqui- sitions Adjusted Operating Income (a) Net Revenues Adjusted Operating Income Margin Adjusted Operating Income Margin Adjusted Operating Income Margin excluding Currency Adjusted Operating Income Margin excluding Currency & Acqui- sitions 2020 2019 % Points Change $ 1,204 $ 2,742 43.9% $ 1,121 $ 2,591 43.3% $ 1,121 $ 2,591 43.3% European Union $ 966 $ 2,436 39.7% 4.2 3.6 3.6 269 908 29.6% 360 1,026 35.1% 360 1,026 35.1% Eastern Europe 263 982 26.8% 2.8 8.3 8.3 217 740 29.3% 253 771 32.8% 253 771 32.8% Middle East & Africa 380 984 38.6% (9.3) (5.8) (5.8) 431 1,185 36.4% 429 1,180 36.4% 429 1,180 36.4% South & Southeast Asia 692 1,487 46.5% (10.1) (10.1) (10.1) 621 1,384 44.9% 602 1,348 44.7% 602 1,348 44.7% East Asia & Australia 412 1,270 32.4% 12.5 12.3 12.3 122 485 25.2% 147 528 27.8% 147 528 27.8% Latin America & Canada 150 554 27.1% (1.9) 0.7 0.7 $ 2,864 $ 7,444 38.5% $ 2,912 $ 7,444 39.1% $ 2,912 $ 7,444 39.1% Total PMI $ 2,863 $ 7,713 37.1% 1.4 2.0 2.0 Quarters Ended December 31, (a) For the calculation of Adjusted Operating Income and Adjusted Operating Income excluding currency and acquisitions refer to slide 55 (b) For the calculation of Net Revenues excluding currency and acquisitions refer to slide 52

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures 59 Adjustments for the Impact of RBH, excluding Currency ($ in millions) / (Unaudited) (a) For the calculation of Adjusted Operating Income refer to slide 54 (b) Represents the impact attributable to RBH from January 1, 2019 to March 21, 2019 (c) Pro forma Years Ended December 31, 2020 2019 % Change Adjusted Operating Income $ 11,698 $ 11,760 (0.5)% Net Revenues $ 28,694 $ 29,805 (3.7)% Adjusted OI Margin 40.8% 39.5% 1.3 Adjusted OI Margin attributable to RBH (0.2) Adjusted OI Margin 40.8% 39.3% 1.5 Currency (0.9) Adjusted OI Margin, excluding Currency 41.7% 39.3% 2.4 (c) (c) (a) (b) PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures 60 Reconciliation of Reported Diluted EPS to Pro Forma Adjusted Diluted EPS (Unaudited) (a) Represents the impact of net earnings attributable to RBH from January 1, 2019 to March 21, 2019 Note: EPS is computed independently for each of the periods presented. Accordingly, the sum of the quarterly EPS amounts may not agree to the total for the year Reported Diluted EPS $ 0.87 $ 1.49 $ 2.36 $ 1.22 $ 3.57 $ 1.04 $ 4.61 Asset impairment and exit costs 0.01 0.01 0.02 0.01 0.03 0.20 0.23 Canadian tobacco litigation-related expense 0.09 - 0.09 - 0.09 - 0.09 Loss on deconsolidation of RBH 0.12 - 0.12 - 0.12 - 0.12 Russia excise and VAT audit charge - - - 0.20 0.20 - 0.20 Fair value adjustment for equity security investments - - - - - (0.02) (0.02) Tax items - (0.04) (0.04) - (0.04) - (0.04) Adjusted Diluted EPS $ 1.09 $ 1.46 $ 2.55 $ 1.43 $ 3.97 $ 1.22 $ 5.19 Net earnings attributable to RBH (0.06) (a) - (0.06) (a) - (0.06) (a) - (0.06) (a) Pro Forma Adjusted Diluted EPS $ 1.03 $ 1.46 $ 2.49 $ 1.43 $ 3.91 $ 1.22 $ 5.13 Nine Months Ended Sept 30, 20192019 Quarter Ended Mar 31, Quarter Ended June 30, 2019 Six Months Ended June 30, 2019 Quarter Ended Sept 30, 2019 Quarter Ended Dec 31, 2019 Year Ended Dec 31, 2019

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) 61Note: Sum of Regions might not foot to Total PMI due to rounding; "-" indicates amounts between -$0.5 million and +$0.5 million Net Revenues Currency Net Revenues excluding Currency Acquisitions Net Revenues excluding Currency & Acquisitions Years Ended December 31, Net Revenues Total Excluding Currency Excluding Currency & Acquisitions 2018 Reduced-Risk Products 2017 % Change $ 865 $ 36 $ 829 $ - $ 829 European Union $ 269 +100% +100% +100% 324 (22) 346 - 346 Eastern Europe 55 +100% +100% +100% 382 4 378 - 378 Middle East & Africa 94 +100% +100% +100% - - - - - South & Southeast Asia - - - - 2,506 33 2,474 - 2,474 East Asia & Australia 3,218 (22.1)% (23.1)% (23.1)% 19 - 19 - 19 Latin America & Canada 4 +100% +100% +100% $ 4,096 $ 51 $ 4,045 $ - $ 4,045 Total RRPs $ 3,640 12.5% 11.1% 11.1% 2018 PMI 2017 % Change $ 9,298 $ 489 $ 8,809 $ - $ 8,809 European Union $ 8,318 11.8% 5.9% 5.9% 2,921 (118) 3,039 - 3,039 Eastern Europe 2,711 7.7% 12.1% 12.1% 4,114 (193) 4,307 - 4,307 Middle East & Africa 3,988 3.2% 8.0% 8.0% 4,656 (244) 4,900 - 4,900 South & Southeast Asia 4,417 5.4% 10.9% 10.9% 5,580 62 5,518 - 5,518 East Asia & Australia 6,373 (12.4)% (13.4)% (13.4)% 3,056 (99) 3,155 - 3,155 Latin America & Canada 2,941 3.9% 7.3% 7.3% $ 29,625 $ (103) $ 29,728 $ - $ 29,728 Total PMI $ 28,748 3.1% 3.4% 3.4% 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) 62Note: Sum of Regions might not foot to Total PMI due to rounding; "-" indicates amounts between -$0.5 million and +$0.5 million Net Revenues Currency Net Revenues excluding Currency Acquisitions Net Revenues excluding Currency & Acquisitions Years Ended December 31, Net Revenues Total Excluding Currency Excluding Currency & Acquisitions 2017 Reduced-Risk Products 2016 % Change $ 269 $ 5 $ 264 $ - $ 264 European Union $ 57 +100% +100% +100% 55 3 52 - 52 Eastern Europe 6 +100% +100% +100% 94 (3) 98 - 98 Middle East & Africa 4 +100% +100% +100% - - - - - South & Southeast Asia - - - - 3,218 (94) 3,312 - 3,312 East Asia & Australia 666 +100% +100% +100% 4 - 4 - 4 Latin America & Canada 1 +100% +100% +100% $ 3,640 $ (89) $ 3,729 $ - $ 3,729 Total RRPs $ 733 +100% +100% +100% 2017 PMI 2016 % Change $ 8,318 $ 45 $ 8,273 $ - $ 8,273 European Union $ 8,162 1.9% 1.4% 1.4% 2,711 229 2,482 - 2,482 Eastern Europe 2,484 9.1% (0.1)% (0.1)% 3,988 (520) 4,508 - 4,508 Middle East & Africa 4,516 (11.7)% (0.2)% (0.2)% 4,417 (63) 4,480 - 4,480 South & Southeast Asia 4,396 0.5% 1.9% 1.9% 6,373 (74) 6,447 - 6,447 East Asia & Australia 4,285 48.7% 50.5% 50.5% 2,941 (54) 2,995 - 2,995 Latin America & Canada 2,842 3.5% 5.4% 5.4% $ 28,748 $ (437) $ 29,185 $ - $ 29,185 Total PMI $ 26,685 7.7% 9.4% 9.4%

63 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) Note: Sum of Regions might not foot to Total PMI due to rounding; "-" indicates amounts between -$0.5 million and +$0.5 million Net Revenues Currency Net Revenues excluding Currency Acquisitions Net Revenues excluding Currency & Acquisitions Years Ended December 31, Net Revenues Total Excluding Currency Excluding Currency & Acquisitions 2016 Reduced-Risk Products 2015 % Change $ 57 $ (2) $ 60 $ - $ 60 European Union $ 29 96.4% +100% +100% 6 - 6 - 6 Eastern Europe - - - - 4 1 3 - 3 Middle East & Africa - - - - - - - - - South & Southeast Asia - - - - 666 70 597 - 597 East Asia & Australia 35 +100% +100% +100% 1 - 1 - 1 Latin America & Canada - - - - $ 733 $ 67 $ 666 $ - $ 666 Total RRPs $ 64 +100% +100% +100% 2016 PMI 2015 % Change $ 8,162 $ (147) $ 8,309 $ - $ 8,309 European Union $ 8,068 1.2% 3.0% 3.0% 2,484 (340) 2,824 - 2,824 Eastern Europe 2,735 (9.2)% 3.3% 3.3% 4,516 (260) 4,776 - 4,776 Middle East & Africa 4,629 (2.4)% 3.2% 3.2% 4,396 (71) 4,467 - 4,467 South & Southeast Asia 4,288 2.5% 4.2% 4.2% 4,285 63 4,222 - 4,222 East Asia & Australia 3,915 9.5% 7.8% 7.8% 2,842 (525) 3,367 - 3,367 Latin America & Canada 3,159 (10.0)% 6.6% 6.6% $ 26,685 $ (1,280) $ 27,965 $ - $ 27,965 Total PMI $ 26,794 (0.4)% 4.4% 4.4% 64 PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Adjustments for the Impact of RBH, excluding Currency ($ in millions) / (Unaudited) Years Ended December 31, 2020 2019 % Change Net cash provided by operating activities (a) 9,812 $ 10,090 (2.8)% Net cash provided by operating activities attributable to RBH (b) (102) Net cash provided by operating activities (a) $ 9,812 $ 9,988 (1.8)% Currency (524) Net cash provided by operating activities,excluding currency $ 10,336 $ 9,988 3.5% (a) Operating cash flow (b) Represents the impact of operating activities attributable to RBH from January 1, 2019 to March 21, 2019

Delivering a Smoke-Free Future 2020 Fourth-Quarter and Full-Year Results February 4, 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 February 4, 20 2 1 (furnished pursuant to Item 2 .0 2 ).

99.2			Conferenc e Call Script dated February 4, 2021 (f urnished pursuant to Item 7.01).

99.3			Webc ast S lides dated February 4, 2021 (fu rnished 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