8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 20, 2023

Philip Morris International Inc.

(Exact name of registrant as specified in its charter)

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

677 Washington Blvd, Ste. 1100	Stamford	Connecticut	06901
(Address of principal executive offices)			(Zip Code)

Registrant's telephone number, including area code: (203) 905-2410

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

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

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

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

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, no par value	PM	New York Stock Exchange
3.600% Notes due 2023	PM23A	New York Stock Exchange

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

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).

         Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On July 20, 2023, Philip Morris International Inc. (the “Company”) issued a press release announcing its financial results for the second quarter and the first half-year ended June 30, 2023, as well as the accompanying glossary of key terms, definitions, explanatory notes, select financial information and reconciliations of non-GAAP financial measures. The earnings release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference to this Item 2.02. The glossary of key terms, definitions, explanatory notes, select financial information and reconciliations of non-GAAP financial measures is attached as Exhibit 99.2 to this Current Report on Form 8-K and incorporated by reference to this Item 2.02.

In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in Item 2.02 of this Current Report on Form 8-K shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as may be expressly set forth by specific reference in such filing or document.

Item 9.01. Financial Statements and Exhibits.

(d)	Exhibits.
99.1	Philip Morris International Inc. Press Release, dated July 20, 2023 (furnished pursuant to Item 2.02).
99.2	Glossary of Key Terms, Definitions, Explanatory Notes, Select Financial Information and Reconciliations of Non-GAAP Financial Measures (furnished pursuant to Item 2.02).
104	Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document and contained in Exhibit 101)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

PHILIP MORRIS INTERNATIONAL INC.
By:	/s/ DARLENE QUASHIE HENRY
Name:	Darlene Quashie Henry
Title:	Vice President, Associate General Counsel & Corporate Secretary

Date: July 20, 2023

EX-99.1

		Exhibit 99.1
PRESS RELEASE
Investor Relations:	Media:
Stamford, CT: +1 (203) 905 2413	Lausanne: +41 (0)58 242 4500
Lausanne: +41 (0)58 242 4666	Email: David.Fraser@pmi.com
Email: InvestorRelations@pmi.com

PHILIP MORRIS INTERNATIONAL REPORTS 2023 SECOND-QUARTER

AND FIRST-HALF RESULTS;

DELIVERED 2023 SECOND-QUARTER REPORTED DILUTED EPS OF $1.01

AND ADJUSTED DILUTED EPS OF $1.60, REPRESENTING CURRENCY-NEUTRAL GROWTH OF 16.9%;

TARGETS 2023 FULL-YEAR REPORTED DILUTED EPS OF $5.36 TO $5.45 AND ADJUSTED DILUTED EPS OF $6.13 TO $6.22, REPRESENTING CURRENCY-NEUTRAL GROWTH OF 8.0% TO 9.5%

STAMFORD, CT, July 20, 2023 – Philip Morris International Inc. (PMI) (NYSE: PM) today announces its 2023 second-quarter and first-half results. Growth rates presented in this press release on an organic basis reflect adjusted results, excluding currency, acquisitions and disposals. Further explanation of PMI's use of non-GAAP measures cited in this document and reconciliations to the most directly comparable U.S. GAAP measures can be found in the “Non-GAAP Measures and Reconciliations to Non-GAAP Measures” section of this release, in Exhibit 99.2 to the company's Form 8-K dated July 20, 2023, and at www.pmi.com/2023Q2earnings. A glossary of key terms, definitions and explanatory notes is available in the aforementioned Exhibit 99.2 and on the same webpage, where additional financial schedules, as well as adjustments and other calculations have also been made available.

2023 SECOND-QUARTER HIGHLIGHTS

	Second-Quarter
		Change vs. Q2 2022
	Amount	Reported	Adjusted
Total Cig. & HTU Shipment Volume (units bn)	188.4	3.3%
HTU Shipment Volume (units bn)	31.4	26.6%
Oral Product Shipment Volume (mn cans) (1)	197.4	+100%		13.8%	(2)
Net Revenues ($ bn)	$9.0	14.5%		10.5%	(3)
Smoke-Free Product Net Revenues ($ bn)	$3.2	34.1%		17.7%	(3)
- % of Total Net Revenues	35.4%	5.2pp
Operating Income ($ bn)	$2.6	(16.0)%		6.9%	(3)
Diluted Earnings per Share	$1.01	(29.4)%
Adjusted Diluted Earnings per Share	$1.60			16.9%	(4)
(1) Excludes snuff, snuff leaf and U.S. chew (2) On a pro forma basis (including Swedish Match in all periods) (3) On an organic basis (4) Excluding currency

•Reported net revenues up by 19.0%, excluding currency

•Pro forma (including Swedish Match in all periods) adjusted net revenue growth of 11.1%, excluding currency

•Combustible tobacco net revenue growth of 6.0%; growth of 7.4% on an organic basis, driven by pricing of over 9%

•Market share for HTUs in IQOS markets up by 1.6 points to 9.2%

•Adjusted in-market sales volume for HTUs, which excludes the net favorable impact of estimated distributor and wholesaler inventory movements, up by an estimated 16%

•Total IQOS users at quarter-end estimated at approximately 27.2 million (up by 1.4 million versus March 2023), of which approximately 19.4 million had switched to IQOS and stopped smoking

•ZYN nicotine pouch (NP) shipment volume in the U.S. of 89.9 million cans, representing growth of 53.1% versus second-quarter 2022 Swedish Match shipments of 58.7 million cans

•Declared regular quarterly dividend of $1.27 per share, or an annualized rate of $5.08 per share

"Our strong business momentum continued with an excellent second quarter," said Jacek Olczak, Chief Executive Officer. "Total cigarette and HTU shipment volume grew by 3.3%, underpinning double-digit growth in net revenues and currency-neutral adjusted diluted EPS."

"The outstanding performance of Swedish Match – fueled by the growth of ZYN in the U.S. – is accelerating our smoke-free transformation and is complementing IQOS in growing our smoke-free leadership, whilst we also deliver resilient combustibles performance with enhanced pricing."

"Our strong fundamentals give us further confidence as we enter the second half of the year, particularly as certain inflationary and operational pressures ease. We are therefore raising our full-year 2023 forecast for organic net revenue growth to a range of 7.5% to 8.5% and currency-neutral adjusted diluted EPS growth to a range of 8.0% to 9.5%."

"As we look to the longer term, we are complementing our smoke-free transformation with the further development of our wellness and healthcare business. While we have experienced some initial headwinds, we remain committed to wellness and healthcare, with a focused strategy on several attractive growth opportunities."

2023 SECOND-QUARTER SUMMARY

Net revenues increased by 10.5% on an organic basis, driven by total cigarette and HTU shipment volume growth of 3.3% (reflecting growth of 26.6% for HTUs and a decline of 0.4% for cigarettes), the favorable product mix impact associated with the increasing proportion of smoke-free products within PMI's product portfolio, and combustible tobacco pricing in excess of 9%.

HTU shipment volume in the quarter benefited from the favorable net estimated impact of both distributor and wholesaler inventory movements. Excluding these movements, adjusted in-market sales volume for HTUs increased by an estimated 16%, reflecting continued strong IQOS momentum.

While excluded from organic financial performance in the quarter, Swedish Match delivered currency-neutral top-line growth of 19.1% compared to its second-quarter 2022 results, led by shipment volume growth for ZYN in the U.S. of over 50%. On a pro forma basis (including Swedish Match in all periods), PMI's net revenues increased by 11.1%, excluding currency.

Adjusted operating income increased by 6.9% on an organic basis, despite global inflationary pressures related to direct materials, tobacco leaf, energy and wages. Adjusted operating income margin of 39.4% increased by 2.1 points sequentially versus the first quarter.

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Adjusted diluted EPS of $1.60 increased by 16.9%, excluding currency. This exceeded the company's forecast provided on June 6th, mainly driven by exceptional June volumes for ZYN in the U.S., stronger-than-anticipated combustibles performance, the favorable timing of certain costs (which are now expected to come in the third quarter), and a lower tax rate.

	Second-Quarter
	2023	2022	Currency	Var. excl. Currency
Reported Diluted EPS	$ 1.01	$ 1.43	$ (0.13)	(20.3)	%
Tax benefit associated with Swedish Match AB financing	(0.01)	—
Impairment of goodwill and other intangibles	0.44	—
Amortization of intangibles	0.04	0.02
Charges related to the war in Ukraine	—	0.04
Costs associated with Swedish Match AB offer	—	0.02
South Korea indirect tax charge	0.11	—
Fair value adjustment for equity security investments	0.01	—
Tax items	—	(0.03)
Adjusted Diluted EPS	$ 1.60	$ 1.48	$ (0.13)	16.9	%

2023 FULL-YEAR FORECAST

	Full-Year
	2023 Forecast			2022	Growth
Reported Diluted EPS	$5.36	-	$5.45	$ 5.81
Adjustments:
Asset impairment and exit costs	0.06			—
Termination of distribution arrangement in the Middle East	0.04			—
Tax benefit associated with Swedish Match AB financing	(0.06)			(0.13)
Impairment of goodwill and other intangibles	0.44			0.06
Amortization of intangibles	0.16			0.09
Costs associated with Swedish Match AB offer	—			0.06
Charges related to the war in Ukraine	—			0.08
Swedish Match AB acquisition accounting related item	0.01			0.06
South Korea indirect tax charge	0.11			—
Fair value adj. for equity security investments	0.01			(0.02)
Tax items	—			(0.03)
Total Adjustments	0.77			0.17
Adjusted Diluted EPS	$6.13	-	$6.22	$ 5.98
Less: Currency	(0.33)
Adjusted Diluted EPS, excluding currency	$6.46	-	$6.55	$ 5.98	8.0%	-	9.5%

Reported diluted EPS is forecast to be in a range of $5.36 to $5.45, at prevailing exchange rates, versus reported diluted EPS of $5.81 in 2022. Excluding a total 2023 adjustment of $0.77 per share and an adverse currency impact, at prevailing exchange rates, of $0.33 per share, this forecast represents a projected increase of 8.0% to 9.5% versus adjusted diluted EPS of $5.98 in 2022, as outlined in the above table.

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The company's forecast for adjusted diluted EPS growth, excluding currency, represents an increase compared to its June 6, 2023, forecast of 7% to 9%.

2023 Full-Year Forecast Assumptions

This forecast assumes:

•An estimated total international industry volume decline for cigarettes and HTUs, excluding China and the U.S., of 0.5% to 1.5%;

•Total cigarette and HTU shipment volume growth for PMI of up to +1%;

•HTU shipment volume of 125 to 130 billion units, broadly in line with anticipated adjusted in-market sales volume and reflecting an acceleration in growth versus 2022;

•A cigarette shipment volume decline of approximately 1.5% to 2.5%;

•Net revenue growth of approximately 7.5% to 8.5% on an organic basis;

•Strong full-year performance for Swedish Match’s existing operations, underpinned by strong shipment volume growth for ZYN in the U.S.;

•An adjusted operating income margin decline of 50 to 150 basis points on an organic basis, with the decline likely toward the upper (150 basis point) end of the range, notably due to technical factors;

•Incremental investments to drive future growth, including the commercialization of ILUMA and around $150 million with a broadly even split between the U.S. and the Wellness and Healthcare segment;

•Wellness and Healthcare segment net revenues of around $300 million (including smoking cessation products), with an adjusted operating loss of around $150 million, primarily due to investments in research and development;

•No contribution from any potential favorable court ruling related to the legality of a supplemental tax surcharge on HTUs in Germany, which went into effect in 2022 (see PMI's first-quarter 2023 press release from April 20, 2023, for additional detail). PMI expects to have greater visibility on the likely outcome toward the end of this year;

•The contribution of the company's operations in Russia and Ukraine for the entire year;

•Full-year amortization and impairment of acquired intangibles of $0.60 per share, which includes amortization related to the Swedish Match acquisition based on preliminary purchase price allocation that may be subject to change;

•A full year’s net positive earnings contribution from Swedish Match including related interest expense, with Swedish Match included in PMI's organic performance as of November 11, 2023;

•Net financing costs of around $1.2 billion;

•An effective tax rate, excluding discrete tax events, of approximately 20.5% to 21.5%;

•Operating cash flow of $10 to $11 billion at prevailing exchange rates, subject to year-end working capital requirements;

•Capital expenditures of approximately $1.3 billion, partly reflecting increased investments behind smoke-free product manufacturing capacity, including for ILUMA consumables and Swedish Match's portfolio;

•No share repurchases in 2023;

- 4 -

•Third-quarter adjusted diluted EPS in a range of $1.60 to $1.65, including an unfavorable currency impact, at prevailing exchange rates, of $0.06 per share, notably reflecting HTU shipment volume of around 31 to 33 billion units and high-single-digit organic top-line growth;

•Strong second-half 2023 organic adjusted operating income growth that supports second-half adjusted operating income margin expansion on the same basis, with notably strong performance in the fourth quarter.

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

Sale of Swedish Match Subsidiary

As previously disclosed, under the EU Merger Regulation, approval by the European Commission of PMI’s Swedish Match acquisition was conditional on the subsequent sale of Swedish Match’s subsidiary, SMD Logistics AB (SMDL). On June 30, 2023, PMI completed the sale of SMDL.

War in Ukraine

In Ukraine, PMI's main priority remains the safety and security of its more than 1,300 employees and their families in the country. The company continues select retail activities where safety allows, in order to provide product availability and service to adult consumers, and supplies the market from production centers outside Ukraine, as well as through a contract manufacturing arrangement. Production at the company's factory in Kharkiv remains suspended. On June 20, 2023, PMI announced the investment of $30 million in a new production facility in the Lviv region, in Western Ukraine. Preparatory work for the facility began in July 2023 and production is expected to commence in the first quarter of 2024. As of June 30, 2023, PMI's Ukrainian operations had approximately $0.5 billion in total assets, excluding intercompany balances.

PMI is continuously assessing the evolving situation in Russia, including recent regulatory constraints in the market entailing very complex terms and conditions that must be met for any divestment transaction to be granted approval by the authorities, and restrictions resulting from international regulations. As of June 30, 2023, PMI's Russian operations had approximately $2.4 billion in total assets, excluding intercompany balances, of which approximately $0.6 billion consisted of cash and equivalents held mostly in local currency (Russian rubles).

Scientific Update

Regulatory Science Update

PMI has specifically designed a product assessment program to deliver the pre-market scientific evidence that governmental authorities need in order to understand and assess novel tobacco products with the potential to reduce the risk of disease.

PMI received Premarket Tobacco Product Application (PMTA) authorizations for the IQOS Tobacco Heating System, blade versions 2.4 and 3.0, from the U.S. Food and Drug Administration (FDA) in 2019 and 2020, respectively. The same products were also granted Modified Risk Tobacco Product authorizations (MRTPAs) allowing reduced exposure claims, in 2020 and 2022.

PMI is on track for its IQOS ILUMA PMTA submission in the fourth quarter of 2023 to seek market authorization in the U.S. The PMTA submission will be followed by a supplemental MRTPA submission for IQOSILUMA (also planned in 2023), requesting authorization of the exposure reduction marketing order previously granted for IQOS blade versions. The company’s science demonstrates comparable performance between IQOS ILUMA and the previous blade versions of IQOS.

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Inhaled Aspirin Product Clinical Trial Results

During the second quarter, the company received its first clinical trial results for an inhalable aspirin product being developed by its Wellness and Healthcare business. While it was observed that the experimental product had a rapid onset of effect, which is the key medical advantage sought, there was significant variability in inhaled dose among subjects. The study was therefore deemed unsuccessful and, as a result, product design improvements are required. The company had planned to file a new drug application for this product with the FDA later this year. However, additional time is now required to evaluate design improvements.

Other Scientific Matters

Between 2020 and 2023, PMI conducted time trend analysis studies (TTA Studies), including two in Japan that looked at third-party hospitalization data for chronic obstructive pulmonary disease and ischemic heart disease before and after the introduction of several competing brands of heated tobacco products, including IQOS. As disclosed contemporaneously with the TTA Studies, ecological analyses such as these have many inherent limitations and are not designed to assess cause and effect. Given their inherent limitations, time trend analysis studies are used primarily to develop hypotheses for further research. Upon PMI’s post-publication review of the TTA Studies, which identified certain inaccuracies in the study methodology, analyses and presentation of the data, PMI has determined that these TTA Studies and their conclusions are no longer useful and will no longer be relying on them for developing hypotheses or any other purpose.

Scientific Evidence for Tobacco Harm Reduction

The totality of the evidence to date on PMI's smoke-free products overwhelmingly supports their role in tobacco harm reduction. PMI’s scientific program has yielded over 500 scientific publications in peer-reviewed journals, including 14 in 2023.

PMI has a robust roadmap in place for future scientific studies, including post-market studies, and plans to elaborate further on these programs during the company's Investor Day on September 28th.

Wellness and Healthcare Reporting Segment Asset Impairment Charge

During the second quarter of 2023, PMI completed its annual review of goodwill and non-amortizable intangible assets for potential impairment. Based on this review, it was determined that the estimated fair value of the Wellness and Healthcare reporting segment was below its carrying value, primarily reflecting the impact of two factors:

1.The unsuccessful clinical trial results for the company's inhalable aspirin product discussed above, given the additional time now required to evaluate design improvements and the corresponding less certain outcome.

2.Slower-than-anticipated development of the contract development and manufacturing organization (CDMO) business, including challenges associated with increased cost related to certain key products.

Consequently, PMI recorded a total impairment charge in the Wellness and Healthcare segment of $680 million in the second quarter. The charge is non-cash.

PMI remains committed to developing its Wellness and Healthcare business and continues to see attractive growth potential -- leveraging its unique and enabling R&D capabilities -- in areas such as inhalable drugs, nicotine-replacement therapy (NRT), and consumer wellness products, including non-recreational cannabinoids in line with applicable regulatory requirements. The company does, however, expect the aforementioned factors to postpone its 2025 ambition to reach over $1 billion of net revenues for the Wellness and Healthcare segment, and result in a corresponding decrease in the level of investment behind the segment next year.

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Further detail on the company's Wellness and Healthcare business will be presented at PMI's 2023 Investor Day on September 28th.

South Korea Indirect Tax Charge

On July 13, 2023, PMI's South Korean subsidiary, Philip Morris Korea Inc. (PM Korea), received an adverse ruling from the Supreme Court of South Korea related to cases alleging underpayment of excise taxes in connection with a 2015 excise tax increase and subsequent audit by the South Korean Board of Audit and Inspection (BAI). The Supreme Court ruling reversed previous decisions that were in PM Korea’s favor at the trial and appellate levels.

As a result of the ruling, PMI management concluded that an adverse outcome is probable. Consequently, PMI recorded a non-cash pre-tax charge of $204 million in its second quarter results, reflecting the full amount previously paid by PM Korea.

Conference Call

A conference call hosted by Emmanuel Babeau, Chief Financial Officer, will be webcast at 9:00 a.m., Eastern Time, on July 20, 2023. Access the call at www.pmi.com/2023Q2earnings.

TOTAL MARKET, CONSOLIDATED SHIPMENT VOLUME & MARKET SHARE

Total Market Volume

Second-Quarter

Estimated international industry volume (excluding China and the U.S.) for cigarettes and HTUs decreased by 2.1% in the second quarter, reflecting declines in the South & Southeast Asia, Commonwealth of Independent States, and Middle East & Africa (SSEA, CIS & MEA) Region, the Europe Region and the Americas Region, partly offset by increases in the East Asia, Australia & PMI Duty Free (EA, AU & PMI DF) Region, as described in the Regional sections.

Six Months Year-to-Date

Estimated international industry volume (excluding China and the U.S.) for cigarettes and HTUs decreased by 0.9% in the first half, reflecting declines in the SSEA, CIS & MEA Region and the Europe Region, partly offset by increases in the EA, AU & PMI DF Region and the Americas Region, as described in the Regional sections.

Consolidated Shipment Volume

PMI Cigarettes and HTUs	Second-Quarter				Six Months Year-to-Date
(million units)	2023	2022	Change		2023	2022	Change
Cigarettes	157,010	157,678	(0.4)	%	300,718	305,916	(1.7)	%
Heated Tobacco Units	31,424	24,821	26.6	%	58,820	49,640	18.5	%
Total Cigarettes and HTUs	188,434	182,499	3.3	%	359,538	355,556	1.1	%

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PMI Oral Products (1)	Second-Quarter				Six Months Year-to-Date
(million cans)	2023	2022	Change		2023	2022	Change
Nicotine Pouches	99.5	0.9	+100%		180.7	1.9	+100%
Snus	62.6	5.1	+100%		118.2	7.6	+100%
Moist Snuff	34.1	—	—	%	69.3	—	—	%
Other	1.2	—	—	%	2.5	—	—	%
Total Oral Products	197.4	6.0	+100%		370.7	9.5	+100%
(1) Excluding snuff, snuff leaf and U.S. chew
Note: Sum may not foot due to roundings.

Second-Quarter

PMI's total cigarette and HTU shipment volume increased by 3.3%, reflecting a 26.6% increase in HTU shipments across all regions, partly offset by a 0.4% decline in cigarette shipments (due to the Europe Region, the EA, AU & PMI DF Region and the Americas Region, partially offset by the SSEA, CIS & MEA Region). Cigarette shipment volume for Marlboro decreased by 2.9% to 60.8 billion units, due primarily to the Philippines.

PMI’s total oral product shipment volume increased by +100%, driven by the Swedish Match acquisition. On a pro forma basis (including Swedish Match in all periods), it increased by 13.8%, primarily reflecting growth in nicotine pouches (particularly in the U.S.), partly offset by a decline for snus (mainly in Scandinavia). Swedish Match's total oral product shipment volume increased by 15.1% versus its corresponding shipments in the second quarter of 2022.

Impact of Inventory Movements

Excluding the net favorable impact of estimated distributor inventory movements (primarily driven by HTUs), PMI’s total in-market sales for cigarettes and HTUs increased by 2.2%, reflecting 17.0% growth for HTUs (or 15.5% on an adjusted basis), partly offset by a decline of 0.2% for cigarettes. The net favorable impact of estimated distributor inventory movements for HTUs was driven primarily by Japan (mainly reflecting a favorable comparison due to HTU capacity constraints in the prior year period), partly offset by Italy.

Six Months Year-to-Date

PMI's total cigarette and HTU shipment volume increased by 1.1%, reflecting an 18.5% increase in HTU shipments across all regions, partly offset by a 1.7% decline in cigarette shipments (mainly due to the Europe and EA, AU & PMI DF Regions). Cigarette shipment volume for Marlboro decreased by 2.6% to 116.8 billion units, due primarily to the Philippines.

PMI’s total oral product shipment volume increased by +100%, driven by the Swedish Match acquisition. On a pro forma basis (including Swedish Match in all periods), it increased by 11.8%, primarily reflecting the same factors as in the quarter. Swedish Match's total oral product shipment volume increased by 12.6% versus its corresponding shipments in the first half of 2022.

Impact of Inventory Movements

The net impact of estimated distributor inventory movements on PMI's total cigarette and HTU shipment volume was immaterial.

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International Share of Market - Cigarettes and HTUs

	Second-Quarter					Six Months Year-to-Date
	2023		2022		Change (pp)	2023		2022		Change (pp)
Total International Market Share (1)	28.5	%	27.4	%	1.1	27.9	%	27.4	%	0.5
Cigarettes	23.9	%	23.5	%	0.4	23.3	%	23.4	%	(0.1)
HTU	4.6	%	3.9	%	0.7	4.6	%	4.0	%	0.6
Cigarette over Cigarette Market Share (2)	25.5	%	24.8	%	0.7	24.8	%	24.7	%	0.1
(1) Defined as PMI's cigarette and heated tobacco unit in-market sales volume as a percentage of total industry cigarette and heated tobacco unit sales volume, excluding China and the U.S., including cigarillos in Japan
(2) Defined as PMI's cigarette in-market sales volume as a percentage of total industry cigarette sales volume, excluding China and the U.S., including cigarillos in Japan

CONSOLIDATED FINANCIAL SUMMARY

Second-Quarter

Quarters Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 8,967		$ 7,832		14.5	%	10.5	%	1,135	(351)	665	459	390	(28)
Cost of Sales (1)	(3,228)		(2,648)		(21.9)	%	(16.2)	%	(580)	85	(235)	—	(263)	(167)
Marketing, Administration and Research Costs (2)	(3,173)		(2,128)		(49.1)	%	(43.2)	%	(1,045)	40	(166)	—	—	(919)
Operating Income	$ 2,566		$ 3,056		(16.0)	%	(17.3)	%	(490)	(226)	264	459	127	(1,114)
Impairment of Goodwill and Other Intangibles	(680)		—		—	%	—	%	(680)	—	—	—	—	(680)
Amortization of Intangibles	(82)		(36)		-(100)%		8.3	%	(46)	—	(49)	—	—	3
Charges related to the war in Ukraine	—		(80)		+100%		+100%		80	—	—	—	—	80
Costs associated with Swedish Match AB offer	—		(52)		+100%		+100%		52	—	—	—	—	52
South Korea Indirect Tax Charge	(204)		—		—	%	—	%	(204)	—	—	—	—	(204)
Adjusted Operating Income	$ 3,532		$ 3,224		9.6	%	6.9	%	308	(226)	313	459	127	(365)
Adjusted Operating Income Margin	39.4	%	41.2	%	(1.8)pp		(1.4)	pp
(1) Includes $22 million in 2023 and $20 million in 2022 related to the special items below.
(2) Includes $944 million in 2023 and $148 million in 2022 related to the special items below.

Net revenues increased by 10.5% on an organic basis, mainly reflecting: a favorable pricing variance, primarily driven by higher combustible tobacco pricing, partly offset by lower HTU (net) pricing; and favorable volume/mix, mainly driven by higher HTU volume and favorable cigarette mix, partially offset by lower cigarette volume and unfavorable HTU mix.

Adjusted operating income increased by 6.9% on an organic basis, mainly reflecting: the favorable pricing

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variance; and favorable volume/mix, mainly driven by higher HTU volume, partly offset by lower cigarette volume, unfavorable HTU mix and unfavorable cigarette mix; partially offset by higher marketing, administration and research costs (primarily due to inflationary impacts, notably related to wages); and higher manufacturing costs (primarily due to inflationary impacts, notably related to direct materials, tobacco leaf and energy, partly offset by productivity).

Six Months Year-to-Date

Six Months Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 16,986		$ 15,578		9.0	%	6.3	%	1,408	(825)	1,246	796	349	(158)
Termination of distribution arrangement in the Middle East	(80)		—		—	%	—	%	(80)	—	—	—	—	(80)
Adjusted Net Revenues	$ 17,066		$ 15,578		9.6	%	6.8	%	1,488	(825)	1,246	796	349	(78)
Net Revenues	$ 16,986		$ 15,578		9.0	%	6.3	%	1,408	(825)	1,246	796	349	(158)
Cost of Sales (1)	(6,266)		(5,256)		(19.2)	%	(14.0)	%	(1,010)	201	(476)	—	(453)	(282)
Marketing, Administration and Research Costs (2)	(5,423)		(3,968)		(36.7)	%	(32.3)	%	(1,455)	139	(313)	—	—	(1,281)
Operating Income	$ 5,297		$ 6,354		(16.6)	%	(16.2)	%	(1,057)	(485)	457	796	(104)	(1,721)
Asset Impairment & Exit Costs	(109)		—		—	%	—	%	(109)	—	—	—	—	(109)
Termination of distribution arrangement in the Middle East (3)	(80)		—		—	%	—	%	(80)	—	—	—	—	(80)
Impairment of Goodwill and Other Intangibles	(680)		—		—	%	—	%	(680)	—	—	—	—	(670)
Amortization of Intangibles	(163)		(74)		-(100)%		13.5	%	(89)	—	(99)	—	—	10
Charges related to the war in Ukraine	—		(122)		+100%		+100%		122	—	—	—	—	122
Costs associated with Swedish Match AB offer	—		(52)		+100%		+100%		52	—	—	—	—	52
Swedish Match AB acquisition accounting related items	(18)		—		—	%	—	%	(18)	—	(18)	—	—	—
South Korea Indirect Tax Charge	(204)		—		—	%	—	%	(204)	—	—	—	—	(204)
Adjusted Operating Income	$ 6,551		$ 6,602		(0.8)	%	(2.1)	%	(51)	(485)	574	796	(104)	(832)
Adjusted Operating Income Margin	38.4	%	42.4	%	(4.0)pp		(3.6)pp
(1) Includes $62 million in 2023 and $46 million in 2022 related to the special items below.
(2) Includes $1,112 million in 2023 and $202 million in 2022 related to the special items below.
(3) Included in Net Revenues above.

Adjusted net revenues increased by 6.8% on an organic basis, mainly reflecting: a favorable pricing variance, primarily driven by higher combustible tobacco pricing, partly offset by lower HTU (net) pricing; and favorable volume/mix, mainly driven by higher HTU volume and favorable cigarette mix, partially offset by lower cigarette

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volume and unfavorable smoke-free product mix.

Adjusted operating income decreased by 2.1% on an organic basis, mainly reflecting: higher marketing, administration and research costs (primarily due to inflationary impacts, notably related to wages, and lower commercial investments in the prior year period); higher manufacturing costs (primarily due to inflationary impacts, notably related to direct materials, tobacco leaf and energy, partly offset by productivity); and unfavorable volume/mix, mainly due to lower cigarette volume, as well as unfavorable HTU and cigarette mix, partly offset by higher HTU volume; partially offset by the favorable pricing variance.

EUROPE REGION

Total Market, PMI Shipment & Market Share Commentaries

Second-Quarter

The estimated total market for cigarettes and HTUs in the Region decreased by 1.5% to 140.7 billion units, reflecting a 3.7% decline for cigarettes, partly offset by a 22.4% increase for HTUs. The decrease in the estimated total market was notably due to France (down by 10.4%) and the UK (down by 13.3%), partly offset by Ukraine (up by 13.4%).

Six Months Year-to-Date

The estimated total market for cigarettes and HTUs in the Region decreased by 0.5% to 266.2 billion units, reflecting a 2.3% decline for cigarettes, partly offset by a 18.1% increase for HTUs. The decrease in the estimated total market was notably due to France (down by 7.3%) and the UK (down by 13.7%), partly offset by Poland (up by 3.3%).

Europe Key Data	Second-Quarter						Six Months Year-to-Date
					Change						Change
	2023		2022		% / pp		2023		2022		% / pp
PMI Shipment Volume (million units)
Cigarettes	43,741		45,166		(3.2)	%	82,898		86,015		(3.6)	%
Heated Tobacco Units	11,705		10,542		11.0	%	21,804		20,811		4.8	%
Total Europe	55,446		55,708		(0.5)	%	104,702		106,826		(2.0)	%
PMI Market Share
Cigarettes	30.2	%	31.1	%	(0.9)		30.2	%	31.5	%	(1.3)
Heated Tobacco Units	8.8	%	7.1	%	1.7		8.8	%	7.6	%	1.2
Total Europe	39.0	%	38.2	%	0.8		39.1	%	39.1	%	—
Note: Sum may not foot due to roundings.

Second-Quarter

PMI's total cigarette and HTU shipment volume in the Region decreased by 0.5% to 55.4 billion units, mainly due to Italy (down by 10.2%; or by 3.0% excluding the net unfavorable impact of estimated distributor inventory movements), partly offset by Poland (up by 8.5%) and Ukraine (up by 50.3%).

PMI's estimated HTU adjusted in-market sales volume in the Region increased by approximately 19.7% in the quarter, reflecting the strong continued growth momentum for IQOS (supported by the further roll-out of ILUMA),

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including in Germany and Italy, with growth of approximately 36.9% and 16.0%, respectively.

PMI's HTU share of the total cigarette and HTU market in the Region increased by 1.7 points, or by 1.6 points on an adjusted basis. Adjusted HTU share for Germany reached 5.4%, an increase of 1.5 points versus the second quarter of 2022. See Appendix 1 for additional detail.

Six Months Year-to-Date

PMI's total cigarette and HTU shipment volume in the Region decreased by 2.0% to 104.7 billion units, mainly due to Germany (down by 6.3%, or by 0.1% excluding the net unfavorable impact of estimated wholesaler inventory movements), Italy (down by 9.5%; or by 0.5% excluding the net unfavorable impact of estimated distributor inventory movements) and Spain (down by 8.3%, or by 5.5% excluding the net unfavorable impact of estimated distributor inventory movements), partly offset by Poland (up by 11.8%).

PMI's estimated HTU adjusted in-market sales volume in the Region increased by approximately 21.4% in the first half, including growth in Germany and Italy of approximately 36.2% and 16.0%, respectively.

PMI's HTU share of the total cigarette and HTU market in the Region increased by 1.2 points, or by 1.6 points on an adjusted basis.

Financial Summary

Second-Quarter

Quarters Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 3,402		$ 3,309		2.8	%	3.1	%	93	(11)	—	149	(45)	—
Operating Income	$ 1,563		$ 1,474		6.0	%	3.9	%	89	31	—	149	(56)	(35)
Adjustments (1)	(10)		(113)		91.2	%	91.2	%	103	—	—	—	—	103
Adjusted Operating Income	$ 1,573		$ 1,587		(0.9)	%	(2.8)	%	(14)	31	—	149	(56)	(138)
Adjusted Operating Income Margin	46.2	%	48.0	%	(1.8)pp		(2.8)pp
(1) See Schedule 8 in Exhibit 99.2 to the Form 8-K dated July 20, 2023, for additional detail.

Net revenues increased by 3.1% on an organic basis, reflecting: a favorable pricing variance, mainly driven by higher combustible tobacco pricing, partly offset by lower HTU (net) pricing (primarily related to the supplemental tax surcharge in Germany); partially offset by unfavorable volume/mix, mainly due to lower cigarette volume, as well as unfavorable cigarette and HTU mix, partly offset by higher HTU volume.

Adjusted operating income decreased by 2.8% on an organic basis, primarily reflecting: higher manufacturing costs (primarily due to inflationary impacts); higher marketing, administration and research costs (primarily due to inflationary impacts); and unfavorable volume/mix, mainly due to the same factors as for net revenues; partly offset by favorable pricing.

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Six Months Year-to-Date

Six Months Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 6,312		$ 6,533		(3.4)	%	(0.2)	%	(221)	(208)	—	177	(190)	—
Operating Income	$ 2,738		$ 3,032		(9.7)	%	(7.7)	%	(294)	(60)	—	177	(236)	(175)
Adjustments (1)	(69)		(165)		58.2	%	58.2	%	96	—	—	—	—	96
Adjusted Operating Income	$ 2,807		$ 3,197		(12.2)	%	(10.3)	%	(390)	(60)	—	177	(236)	(271)
Adjusted Operating Income Margin	44.5	%	48.9	%	(4.4)pp		(4.9)pp
(1) See Schedule 9 in Exhibit 99.2 to the Form 8-K dated July 20, 2023, for additional detail.

Net revenues decreased by 0.2% on an organic basis, reflecting: unfavorable volume/mix, mainly due to lower cigarette volume, as well as unfavorable HTU and cigarette mix, partly offset by higher HTU volume (despite the adverse net impact of estimated wholesaler and distributor HTU inventory movements in Germany and Italy, respectively, which was concentrated in the first quarter); largely offset by a favorable pricing variance, mainly driven by higher combustible tobacco pricing, partly offset by lower HTU (net) pricing (primarily related to the supplemental tax surcharge in Germany).

Adjusted operating income decreased by 10.3% on an organic basis, primarily reflecting: unfavorable volume/mix, mainly due to the same factors as for net revenues; higher marketing, administration and research costs (mainly due to inflationary impacts and lower commercial investments in the prior year period); and higher manufacturing costs (primarily due to inflationary impacts); partly offset by the favorable pricing variance.

SSEA, CIS & MEA REGION

Total Market, PMI Shipment & Market Share Commentaries

Second-Quarter

The estimated total market for cigarettes and HTUs in the Region decreased by around 3%, primarily reflecting a decline for cigarettes. The decrease in the estimated total market was mainly due to Egypt (down by 28.7%), Indonesia (down by 4.7%) and Pakistan (down by 49.5%), partly offset by Turkey (up by 14.4%).

Six Months Year-to-Date

The estimated total market for cigarettes and HTUs in the Region decreased by around 2%, primarily reflecting a decline for cigarettes. The decrease in the estimated total market was mainly due to Egypt (down by 16.3%), Indonesia (down by 5.6%), Pakistan (down by 41.8%) and the Philippines (down by 19.7%), partly offset by Bangladesh (up by 26.6%) and Turkey (up by 12.4%).

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PMI Shipment Volume	Second-Quarter				Six Months Year-to-Date
(million units)	2023	2022	Change		2023	2022	Change
Cigarettes	84,415	82,365	2.5	%	160,946	160,611	0.2	%
Heated Tobacco Units	5,853	5,642	3.7	%	11,300	10,655	6.1	%
Total SSEA, CIS & MEA	90,268	88,007	2.6	%	172,246	171,266	0.6	%

Second-Quarter

PMI's total cigarette and HTU shipment volume in the Region increased by 2.6% to 90.3 billion units, mainly driven by Egypt (up by 23.2%) and Turkey (up by 27.6%), partly offset by Pakistan (down by 57.7%) and the Philippines (down by 19.8%).

Six Months Year-to-Date

PMI's total cigarette and HTU shipment volume in the Region increased by 0.6% to 172.2 billion units, mainly driven by Algeria (up by 39.9%), Egypt (up by 15.0%) and Turkey (up by 22.7%), partly offset by Indonesia (down by 4.1%), Pakistan (down by 50.5%) and the Philippines (down by 26.3%).

Financial Summary

Second-Quarter

Quarters Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 2,668		$ 2,514		6.1	%	14.9	%	154	(221)	—	253	149	(27)
Operating Income	$ 858		$ 958		(10.4)	%	(0.2)	%	(100)	(98)	—	253	(35)	(220)
Adjustments (1)	(5)		(21)		76.2	%	76.2	%	16	—	—	—	—	16
Adjusted Operating Income	$ 863		$ 979		(11.8)	%	(1.8)	%	(116)	(98)	—	253	(35)	(236)
Adjusted Operating Income Margin	32.3	%	38.9	%	(6.6)pp		(5.6)pp
(1) See Schedule 8 in Exhibit 99.2 to the Form 8-K dated July 20, 2023, for additional detail.

Net revenues increased by 14.9% on an organic basis, primarily reflecting: a favorable pricing variance, mainly driven by higher combustible tobacco pricing, with HTU pricing also higher; and favorable volume/mix, primarily driven by favorable cigarette mix, as well as higher volume for cigarettes, HTUs and devices.

Adjusted operating income decreased by 1.8% on an organic basis, primarily reflecting: higher manufacturing costs (primarily due to inflationary impacts); higher marketing, administration and research costs; and unfavorable volume/mix, mainly due to cigarettes; partly offset by the favorable pricing variance.

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Six Months Year-to-Date

Six Months Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 5,145		$ 4,959		3.8	%	10.4	%	186	(332)	—	486	185	(153)
Adjustment (1)	(80)		—		—	%	—	%	(80)	—	—	—	—	(80)
Adjusted Net Revenues	$ 5,225		$ 4,959		5.4	%	12.1	%	266	(332)	—	486	185	(73)
Net Revenues	$ 5,145		$ 4,959		3.8	%	10.4	%	186	(332)	—	486	185	(153)
Operating Income	$ 1,570		$ 1,923		(18.4)	%	(11.0)	%	(353)	(142)	—	486	(114)	(583)
Adjustments (2)	(124)		(27)		-(100)%		-(100)%		(97)	—	—	—	—	(97)
Adjusted Operating Income	$ 1,694		$ 1,950		(13.1)	%	(5.8)	%	(256)	(142)	—	486	(114)	(486)
Adjusted Operating Income Margin	32.4	%	39.3	%	(6.9)pp		(6.3)pp
(1) Termination of distribution arrangement in the Middle East
(2) See Schedule 9 in Exhibit 99.2 to the Form 8-K dated July 20, 2023, for additional detail.

Adjusted net revenues increased by 12.1% on an organic basis, primarily reflecting: a favorable pricing variance, mainly driven by higher combustible tobacco pricing, with HTU pricing also higher; and favorable volume/mix, primarily driven by favorable cigarette volume/mix, as well as higher volume for HTUs and devices; partly offset by lower fees for certain distribution rights billed to customers in certain markets, shown in "Cost/Other."

Adjusted operating income decreased by 5.8% on an organic basis, primarily reflecting: higher manufacturing costs (primarily due to inflationary impacts); higher marketing, administration and research costs; unfavorable volume/mix, mainly due to cigarettes, partly offset by higher HTU volume; and the impact of lower fees for certain distribution rights, as noted for net revenues; partially offset by the favorable pricing variance.

EA, AU AND PMI DF REGION

Total Market, PMI Shipment & Market Share Commentaries

Second-Quarter

The estimated total market for cigarettes and HTUs in the Region, excluding China, increased by around 2%, reflecting growth for HTUs, partly offset by a decline for cigarettes. The increase in the estimated total market was mainly driven by International Duty Free (up by 41.4%), partly offset by Australia (down by 15.3%).

Six Months Year-to-Date

The estimated total market for cigarettes and HTUs in the Region, excluding China, increased by around 2%, reflecting growth for HTUs, partly offset by a decline for cigarettes. The increase in the estimated total market was mainly driven by Japan (up by 1.4%) and International Duty Free (up by 42.7%), partly offset by Australia (down by 14.9%).

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PMI Shipment Volume	Second-Quarter				Six Months Year-to-Date
(million units)	2023	2022	Change		2023	2022	Change
Cigarettes	13,351	14,067	(5.1)	%	26,461	28,415	(6.9)	%
Heated Tobacco Units	13,714	8,531	60.8	%	25,462	17,960	41.8	%
Total EA, AU & PMI DF	27,065	22,598	19.8	%	51,923	46,375	12.0	%

Second-Quarter

PMI's total cigarette and HTU shipment volume in the Region increased by 19.8% to 27.1 billion units, mainly driven by Japan (up by 38.7%).

Excluding the net favorable impact of estimated distributor inventory movements (notably driven by cigarettes and HTUs in Japan), PMI’s total in-market sales volume for cigarettes and HTUs increased by 6.8% (reflecting a 16.6% increase for HTUs, partly offset by a 0.6% decline for cigarettes). PMI's total in-market sales volume in Japan increased by 6.0%, reflecting a 14.7% increase for HTUs, partly offset by an 8.0% decline for cigarettes.

Six Months Year-to-Date

PMI's total cigarette and HTU shipment volume in the Region increased by 12.0% to 51.9 billion units, mainly driven by Japan (up by 19.8%) and International Duty Free (up by 10.5%).

Excluding the net favorable impact of estimated distributor inventory movements (notably due to HTUs in Japan, partly offset by cigarettes in Japan and International Duty Free), PMI’s total in-market sales for cigarettes and HTUs increased by 7.5% (reflecting a 17.2% increase for HTUs and a 0.2% increase for cigarettes). PMI's total in-market sales volume in Japan increased by 7.5%, reflecting a 16.3% increase for HTUs, partly offset by a 6.6% decline for cigarettes.

Financial Summary

Second-Quarter

Quarters Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 1,680		$ 1,464		14.8	%	23.8	%	216	(133)	—	23	326	—
Operating Income	$ 544		$ 528		3.0	%	27.7	%	16	(130)	—	23	244	(121)
Adjustments (1)	(205)		(12)		-(100)%		-(100)%		(193)	—	—	—	—	(193)
Adjusted Operating Income	$ 749		$ 540		38.7	%	62.8	%	209	(130)	—	23	244	72
Adjusted Operating Income Margin	44.6	%	36.9	%	7.7pp		11.6pp
(1) See Schedule 8 in Exhibit 99.2 to the Form 8-K dated July 20, 2023, for additional detail.

Net revenues increased by 23.8% on an organic basis, reflecting: favorable volume/mix, mainly driven by higher HTU volume, partly offset by lower cigarette volume. Pricing variance was favorable, driven by higher cigarette pricing largely offset by lower HTU (net) pricing (primarily related to Japan).

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Adjusted operating income increased by 62.8% on an organic basis, mainly reflecting: favorable volume/mix, primarily driven by the same factors as for net revenues; and lower supply chain costs.

Six Months Year-to-Date

Six Months Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 3,200		$ 3,051		4.9	%	14.8	%	149	(303)	—	37	415	—
Operating Income	$ 1,167		$ 1,213		(3.8)	%	16.4	%	(46)	(245)	—	37	289	(127)
Adjustments (1)	(226)		(13)		-(100)%		-(100)%		(213)	—	—	—	—	(213)
Adjusted Operating Income	$ 1,393		$ 1,226		13.6	%	33.6	%	167	(245)	—	37	289	86
Adjusted Operating Income Margin	43.5	%	40.2	%	3.3pp		6.6pp
(1) See Schedule 9 in Exhibit 99.2 to the Form 8-K dated July 20, 2023, for additional detail.

Net revenues increased by 14.8% on an organic basis, reflecting favorable volume/mix, mainly driven by higher HTU volume, partly offset by lower cigarette volume and unfavorable smoke-free product mix (for HTUs and devices). Pricing variance was favorable, driven by higher cigarette and device pricing largely offset by lower HTU (net) pricing (primarily related to Japan).

Adjusted operating income increased by 33.6% on an organic basis, mainly reflecting favorable volume/mix, primarily driven by the same factors as for net revenues, and lower supply chain costs.

AMERICAS REGION

Total Market, PMI Shipment & Market Share Commentaries

Second-Quarter

The estimated total market for cigarettes and HTUs in the Region, excluding the U.S., decreased by around 2%, primarily reflecting a decline for cigarettes. The decrease in the estimated total market was mainly due to Canada (down by 7.3%) and Mexico (down by 7.6%), partly offset by Brazil (up by 2.9%).

Six Months Year-to-Date

The estimated total market for cigarettes and HTUs in the Region, excluding the U.S., increased by less than one percent, primarily reflecting growth for cigarettes. The increase in the estimated total market was mainly driven by Brazil (up by 8.7%), partly offset by Canada (down by 11.5%) and Mexico (down by 6.8%).

PMI Shipment Volume	Second-Quarter				Six Months Year-to-Date
(million units)	2023	2022	Change		2023	2022	Change
Cigarettes	15,503	16,080	(3.6)	%	30,413	30,875	(1.5)	%
Heated Tobacco Units	152	106	43.4	%	254	214	18.7	%
Total Americas	15,655	16,186	(3.3)	%	30,667	31,089	(1.4)	%

- 17 -

Second-Quarter

PMI's total cigarette and HTU shipment volume in the Region decreased by 3.3% to 15.7 billion units, mainly due to Argentina (down by 4.3%) and Mexico (down by 10.2%), partly offset by Brazil (up by 11.6%).

Six Months Year-to-Date

PMI's total cigarette and HTU shipment volume in the Region decreased by 1.4% to 30.7 billion units, mainly due to Argentina (down by 2.5%) and Mexico (down by 9.8%), partly offset by Brazil (up by 15.5%).

Financial Summary

Second-Quarter

Quarters Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 476		$ 469		1.5	%	(1.5)	%	7	14	—	36	(40)	(3)
Operating Income	$ 70		$ 130		(46.2)	%	(26.2)	%	(60)	(26)	—	36	(26)	(44)
Adjustments (1)	(2)		(4)		50.0	%	50.0	%	2	—	—	—	—	2
Adjusted Operating Income	$ 72		$ 134		(46.3)	%	(26.9)	%	(62)	(26)	—	36	(26)	(46)
Adjusted Operating Income Margin	15.1	%	28.6	%	(13.5)pp		(7.4)pp
(1) See Schedule 8 in Exhibit 99.2 to the Form 8-K dated July 20, 2023, for additional detail.

Net revenues decreased by 1.5% on an organic basis, primarily reflecting: unfavorable volume/mix, mainly due to lower cigarette volume and unfavorable cigarette mix; partly offset by a favorable pricing variance, driven by higher combustible tobacco pricing.

Adjusted operating income decreased by 26.9% on an organic basis, mainly reflecting: higher marketing, administration and research costs (including incremental investments in the U.S. in preparation for smoke-free product commercialization); unfavorable volume/mix, mainly due to the same factors as for net revenues; and higher manufacturing costs; partly offset by the favorable pricing variance.

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Six Months Year-to-Date

Six Months Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 921		$ 893		3.1	%	0.6	%	28	23	—	73	(61)	(7)
Operating Income	$ 136		$ 251		(45.8)	%	(31.5)	%	(115)	(36)	—	73	(43)	(109)
Adjustments (1)	(9)		(6)		(50.0)	%	(50.0)	%	(3)	—	—	—	—	(3)
Adjusted Operating Income	$ 145		$ 257		(43.6)	%	(29.6)	%	(112)	(36)	—	73	(43)	(106)
Adjusted Operating Income Margin	15.7	%	28.8	%	(13.1)pp		(8.6)pp
(1) See Schedule 9 in Exhibit 99.2 to the Form 8-K dated July 20, 2023, for additional detail.

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

Adjusted operating income decreased by 29.6% on an organic basis, mainly reflecting: higher marketing, administration and research costs (including incremental investments in the U.S. in preparation for smoke-free product commercialization); unfavorable volume/mix, mainly due to the same factors as for net revenues; and higher manufacturing costs; partly offset by the favorable pricing variance.

SWEDISH MATCH

PMI Shipment Commentary

Swedish Match Oral Product Shipment Volume (1)	Second-Quarter				Six Months Year-to-Date
(million cans)	2023	2022	Change		2023	2022	Change
Nicotine Pouches
U.S.	89.9	—	—	%	163.1	—	—	%
Scandinavia	7.5	—	—	%	14.1	—	—	%
Other	1.3	—	—	%	2.3	—	—	%
Total Nicotine Pouches	98.7	—	—	%	179.5	—	—	%
Snus
Scandinavia	56.9	—	—	%	107.4	—	—	%
Other	1.8	—	—	%	3.8	—	—	%
Total Snus	58.7	—	—	%	111.2	—	—	%
Moist Snuff	34.1	—	—	%	69.3	—	—	%
Other	1.2	—	—	%	2.5	—	—	%
Total Oral Products	192.7	—	—	%	362.5	—	—	%
(1) Excluding U.S. chew

- 19 -

Volume comparisons versus Swedish Match's second-quarter 2022 results reflect data

sourced from its disclosures, available at www.swedishmatch.com/investors.

Second-Quarter

Swedish Match's total shipment volume for oral products increased by 15.1% versus its corresponding shipments of 167.4 million cans in the second quarter of 2022.

Nicotine pouch shipment volume increased by 47.5% compared to Swedish Match's second-quarter 2022 shipment volume of 66.9 million cans, mainly driven by 53.1% growth for ZYN in the U.S. -- an outstanding performance that reflected broad strength across the country. In Scandinavia, shipment volume for nicotine pouches grew by 4.5%.

Shipment volume for snus declined by 10.2% compared to Swedish Match's second-quarter 2022 shipment volume of 65.4 million cans. The decrease was primarily due to Scandinavia, mainly reflecting the comparison versus an exceptionally strong total market in the prior year period.

Six Months Year-to-Date

Swedish Match's total shipment volume for oral products increased by 12.6% versus its corresponding shipments of 321.9 million cans in the first six months of 2022.

Nicotine pouch shipment volume increased by 45.4% compared to Swedish Match's first-half 2022 shipment volume of 123.5 million cans, reflecting 50.1% growth for ZYN in the U.S. In Scandinavia, shipment volume for nicotine pouches grew by 9.6%.

Shipment volume for snus declined by 12.9% compared to Swedish Match's first-half 2022 shipment volume of 127.6 million cans.

Swedish Match's performance in the first-half primarily reflected the same factors as in the quarter, coupled with the impact of excise tax and price increases on snus in Scandinavia in the first quarter (including related inventory movements).

Swedish Match Combustible Product Shipment Volume	Second-Quarter				Six Months Year-to-Date
(million units)	2023	2022	Change		2023	2022	Change
Cigars	430.3	—	—	%	907.1	—	—	%

Second-Quarter

Cigar shipment volume declined by 6.0% compared to Swedish Match's second-quarter 2022 cigar shipment volume of 457.7 million units, primarily due to the impact of price increases partly offset by higher share of market in the natural leaf segment.

Six Months Year-to-Date

Cigar shipment volume declined by 0.9% compared to Swedish Match's first-half 2022 cigar shipment volume of 915.1 million units, mainly due to the same factors as in the quarter.

- 20 -

Financial Summary

Second-Quarter

Quarters Ended June 30,				Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022	Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 665		$ —	—	%	—	%	665	—	665	—	—	—
Operating Income	$ 264		$ —	—	%	—	%	264	—	264	—	—	—
Adjustments (1)	(49)		—	—	%	—	%	(49)	—	(49)	—	—	—
Adjusted Operating Income	$ 313		$ —	—	%	—	%	313	—	313	—	—	—
Adjusted Operating Income Margin	47.1	%	n/a	—pp		—pp
(1) See Schedule 8 in Exhibit 99.2 to the Form 8-K dated July 20, 2023, for additional detail.

PMI recorded net revenues of $665 million in the Swedish Match segment for the quarter, with smoke-free products accounting for over 77% of the segment's total net revenues. Compared to Swedish Match's second-quarter 2022 results, net revenues increased by 19.1%, excluding currency, mainly driven by the strong growth of smoke-free products, led by nicotine pouch volume growth in the U.S., as well as higher pricing for cigars.

PMI recorded adjusted operating income of $313 million in the segment, reflecting an adjusted operating income margin of 47.1%.

Six Months Year-to-Date

Six Months Ended June 30,				Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022	Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 1,246		$ —	—	%	—	%	1,246	—	1,246	—	—	—
Operating Income	$ 457		$ —	—	%	—	%	457	—	457	—	—	—
Adjustments (1)	(117)		—	—	%	—	%	(117)	—	(117)	—	—	—
Adjusted Operating Income	$ 574		$ —	—	%	—	%	574	—	574	—	—	—
Adjusted Operating Income Margin	46.1	%	n/a	—pp		—pp
(1) See Schedule 9 in Exhibit 99.2 to the Form 8-K dated July 20, 2023, for additional detail.

PMI recorded net revenues of $1.2 billion in the Swedish Match segment in the first half, with smoke-free products accounting for over 77% of the segment's total net revenues. Compared to Swedish Match's first-half 2022 results, net revenues increased by 16.8%, excluding currency, mainly driven by the same factors as in the quarter.

- 21 -

PMI recorded adjusted operating income of $574 million in the segment, reflecting an adjusted operating income margin of 46.1%.

WELLNESS AND HEALTHCARE

The operating results of PMI’s Vectura Fertin Pharma business are reported in the Wellness and Healthcare segment.

Financial Summary

Second-Quarter

Quarters Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 76		$ 76		—	%	—	%	—	—	—	(2)	—	2
Operating Income / (Loss)	$ (733)		$ (34)		-(100)%		-(100)%		(699)	(3)	—	(2)	—	(694)
Adjustments (1)	(695)		(18)		-(100)%		-(100)%		(677)	—	—	—	—	(677)
Adjusted Operating Income / (Loss)	$ (38)		$ (16)		-(100)%		-(100)%		(22)	(3)	—	(2)	—	(17)
Adjusted Operating Income / (Loss) Margin	(50.0)	%	(21.1)	%	(28.9)pp		(25.0)pp
(1) See Schedule 8 in Exhibit 99.2 to the Form 8-K dated July 20, 2023, for additional detail.

Net revenues were flat on an organic basis, notably reflecting higher net revenues for smoking cessation products, offset by the unfavorable impact of phasing for select inhalation products.

The adjusted operating loss of $38 million was primarily due to investments in research and development.

Six Months Year-to-Date

Six Months Ended June 30,					Change Fav./(Unfav.)				Variance Fav./(Unfav.)
	2023		2022		Total		Excl. Curr. & Acquis.		Total	Cur- rency	Acqui-sitions	Price	Vol/ Mix	Cost/ Other
(in millions)
Net Revenues	$ 162		$ 142		14.1	%	17.6	%	20	(5)	—	23	—	2
Operating Income / (Loss)	$ (771)		$ (65)		-(100)%		-(100)%		(706)	(2)	—	23	—	(727)
Adjustments (1)	(709)		(37)		-(100)%		-(100)%		(672)	—	—	—	—	(672)
Adjusted Operating Income / (Loss)	$ (62)		$ (28)		-(100)%		-(100)%		(34)	(2)	—	23	—	(55)
Adjusted Operating Income / (Loss) Margin	(38.3)	%	(19.7)	%	(18.6)pp		(16.2)pp
(1) See Schedule 9 in Exhibit 99.2 to the Form 8-K dated July 20, 2023, for additional detail.

- 22 -

Net revenues increased by 17.6% on an organic basis, notably driven by the favorable impact of phasing for select inhalation products (notably in the first quarter), coupled with higher net revenues for smoking cessation products.

The adjusted operating loss of $62 million was primarily due to investments in research and development.

Philip Morris International: Delivering a Smoke-Free Future

Philip Morris International (PMI) is a leading international tobacco company working to deliver a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products. Since 2008, PMI has invested more than USD 10.5 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for adults who would otherwise continue to smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. In November 2022, PMI acquired Swedish Match – a leader in oral nicotine delivery – creating a global smoke-free champion led by the companies’ IQOS and ZYN brands. The U.S. Food and Drug Administration (FDA) has authorized versions of PMI’s IQOS Platform 1 devices and consumables and Swedish Match’s General snus as Modified Risk Tobacco Products (MRTPs). As of June 30, 2023, PMI's smoke-free products were available for sale in 80 markets, and PMI estimates that approximately 19.4 million adults around the world had already switched to IQOS and stopped smoking. Smoke-free products accounted for approximately 35.4% of PMI’s total second-quarter 2023 net revenues. With a strong foundation and significant expertise in life sciences, PMI announced in February 2021 its ambition to expand into wellness and healthcare areas and, through its Vectura Fertin Pharma business, aims to enhance life through the delivery of seamless health experiences. 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 goals and other forward-looking statements, including statements regarding expected financial or operational performance; capital allocation plans; investment strategies; regulatory outcomes; market expectations; and business plans and strategies. Achievement of future results is subject to risks, uncertainties and inaccurate assumptions. In the event that risks or uncertainties materialize, or underlying assumptions prove inaccurate, actual results could vary materially from those contained in such forward-looking statements. Pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, PMI is identifying important factors that, individually or in the aggregate, could cause actual results and outcomes to differ materially from those contained in any forward-looking statements made by PMI.

PMI's business risks include: excise tax increases and discriminatory tax structures; increasing marketing and regulatory restrictions that could reduce our competitiveness, eliminate our ability to communicate with adult consumers, or ban certain of our products in certain markets or countries; health concerns relating to the use of tobacco and other nicotine-containing products and exposure to environmental tobacco smoke; litigation related to tobacco use and intellectual property; intense competition; the effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; the impact and consequences of Russia's invasion of Ukraine; changes in adult smoker behavior; the impact of COVID-19 on PMI's business; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations, and limitations on the ability to repatriate funds;

- 23 -

adverse changes in applicable corporate tax laws; adverse changes in the cost, availability, and quality of tobacco and other agricultural products and raw materials, as well as components and materials for our electronic devices; and the integrity of its information systems and effectiveness of its data privacy policies. PMI's future profitability may also be adversely affected should it be unsuccessful in its attempts to produce and commercialize reduced-risk products or if regulation or taxation do not differentiate between such products and cigarettes; if it is unable to successfully introduce new products, promote brand equity, enter new markets or improve its margins through increased prices and productivity gains; if it is unable to expand its brand portfolio internally or through acquisitions and the development of strategic business relationships; if it is unable to attract and retain the best global talent, including women or diverse candidates; or if it is unable to successfully integrate and realize the expected benefits from recent transactions and acquisitions. Future results are also subject to the lower predictability of our reduced-risk product category's performance.

PMI is further subject to other risks detailed from time to time in its publicly filed documents, including PMI's Annual Report on Form 10-K for the fourth quarter and year ended December 31, 2022, Quarterly Report on Form 10-Q for the first quarter ended March 31, 2023, and Quarterly Report on Form 10-Q for the second quarter ended June 30, 2023, which will be filed in the coming days. PMI cautions that the foregoing list of important factors is not a complete discussion of all potential risks and uncertainties. PMI does not undertake to update any forward-looking statement that it may make from time to time, except in the normal course of its public disclosure obligations.

Non-GAAP Measures and Reconciliations to Non-GAAP Measures

Reconciliations of non-GAAP measures in this release to the most directly comparable U.S. GAAP measures can be found in Exhibit 99.2 to the Form 8-K dated July 20, 2023, and at www.pmi.com/2023Q2earnings.

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. Additionally, starting in 2022 and on a comparative basis, for these measures other than net revenues and operating cash flow, PMI includes adjustments to add back amortization expense on acquisition related intangible assets that are recorded as part of purchase accounting and contribute to PMI’s revenue generation, as well as impairment of intangible assets, if any. Currency-neutral and organic growth rates reflect the way management views underlying performance for these measures. PMI believes that such measures provide useful insight into underlying business trends and results. Management reviews these measures because they exclude changes in currency exchange rates and other factors that may distort underlying business trends, thereby improving the comparability of PMI’s business performance between reporting periods. Furthermore, PMI uses several of these measures in its management compensation program to promote internal fairness and a disciplined assessment of performance against company targets. PMI discloses these measures to enable investors to view the business through the eyes of management.

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

- 24 -

																	Appendix 1
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Key Market Data
Quarters Ended June 30,
Market	Total Market, bio units			PMI Shipments, bio units									PMI Market Share, % (2)
				Total			Cigarette			HTU			Total			HTU
	2023	2022	% Change	2023	2022	% Change	2023	2022	% Change	2023	2022	% Change	2023	2022	pp Change	2023	2022	pp Change
Total (1) (2)	649.9	663.7	(2.1)	188.4	182.5	3.3	157.0	157.7	(0.4)	31.4	24.8	26.6	28.5	27.4	1.1	4.6	3.9	0.7
Europe
France	7.6	8.5	(10.4)	3.7	3.8	(1.3)	3.7	3.7	(1.4)	0.1	0.1	7.9	42.4	42.8	(0.4)	0.8	0.7	0.1
Germany (3)	17.9	18.0	(0.5)	6.9	7.0	(1.7)	6.1	6.5	(6.2)	0.7	0.5	62.8	39.2	38.7	0.5	5.4	3.9	1.5
Italy	18.4	18.8	(2.2)	9.8	10.9	(10.2)	7.0	7.8	(10.4)	2.8	3.1	(9.7)	53.6	54.0	(0.4)	17.0	14.4	2.6
Poland	15.0	14.8	1.4	6.1	5.6	8.5	4.9	4.5	8.0	1.2	1.1	10.4	40.6	37.9	2.7	8.2	7.5	0.7
Spain	11.3	11.5	(2.3)	3.6	3.7	(3.4)	3.3	3.5	(4.3)	0.3	0.2	9.9	29.2	30.1	(0.9)	2.2	1.7	0.5
SSEA, CIS & MEA
Egypt	16.1	22.5	(28.7)	6.0	4.9	23.2	5.7	4.7	21.5	0.3	0.2	66.1	37.2	23.1	14.1	1.8	0.8	1.0
Indonesia	72.0	75.6	(4.7)	20.8	21.4	(2.5)	20.8	21.4	(2.5)	—	—	—	28.9	28.3	0.6	—	—	—
Philippines	10.0	11.2	(10.5)	5.7	7.1	(19.8)	5.6	7.0	(20.0)	—	—	—	56.5	63.1	(6.6)	0.5	0.4	0.1
Russia	53.0	54.6	(3.0)	16.5	16.8	(1.7)	12.6	12.9	(2.1)	3.9	3.9	(0.3)	32.1	30.5	1.6	7.7	6.9	0.8
Turkey	36.1	31.6	14.4	18.5	14.5	27.6	18.5	14.5	27.6	—	—	—	51.3	46.0	5.3	—	—	—
EA, AU & PMI DF
Australia	1.9	2.3	(15.3)	0.6	0.7	(13.5)	0.6	0.7	(13.5)	—	—	—	32.5	31.9	0.6	—	—	—
Japan (2)	37.5	37.5	0.1	16.7	12.0	38.7	4.9	5.1	(3.2)	11.8	7.0	69.2	39.4	37.3	2.1	26.4	23.0	3.4
South Korea	18.5	18.7	(1.1)	3.6	3.6	1.9	2.3	2.4	(5.5)	1.3	1.1	18.1	19.5	19.0	0.5	7.0	5.9	1.1
Americas
Argentina	7.3	7.3	(0.1)	4.5	4.7	(4.3)	4.5	4.7	(4.3)	—	—	—	61.6	64.3	(2.7)	—	—	—
Mexico	7.4	8.0	(7.6)	4.6	5.2	(10.2)	4.6	5.1	(10.2)	—	—	—	63.0	64.8	(1.8)	0.4	0.4	—
(1) Market share estimates are calculated using IMS data, unless otherwise stated
(2) Total market and market share estimates include cigarillos in Japan
(3) PMI market share reflects estimated adjusted in-market sales volume share. Historical HTU adjusted in-market sales volume share: Q3, 2022 (3.7%); Q4, 2022 (4.7%); Q1, 2023 (5.4%). Historical total adjusted in-market sales volume share: Q3, 2022 (38.3%); Q4, 2022 (39.7%); Q1, 2023 (39.4%)
Note: % change for Total Market and PMI shipments is computed based on millions of units. "-" indicates volume below 50 million units and market share below 0.1%

																	Appendix 2
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Key Market Data
Six Months Ended June 30,
Market	Total Market, bio units			PMI Shipments, bio units									PMI Market Share, %(2)
				Total			Cigarette			HTU			Total			HTU
	2023	2022	% Change	2023	2022	% Change	2023	2022	% Change	2023	2022	% Change	2023	2022	pp Change	2023	2022	pp Change
Total (1) (2)	1,265.4	1,276.4	(0.9)	359.5	355.6	1.1	300.7	305.9	(1.7)	58.8	49.6	18.5	27.9	27.4	0.5	4.6	4.0	0.6
Europe
France	15.1	16.3	(7.3)	7.5	7.3	2.8	7.4	7.2	2.6	0.1	0.1	15.5	42.3	43.8	(1.5)	0.8	0.7	0.1
Germany (3)	33.7	34.0	(0.9)	12.9	13.8	(6.3)	11.6	12.4	(6.1)	1.3	1.4	(8.5)	39.3	38.9	0.4	5.4	3.9	1.5
Italy	35.6	35.6	—	18.7	20.7	(9.5)	13.9	14.9	(6.8)	4.8	5.7	(16.6)	53.8	54.1	(0.3)	17.2	14.6	2.6
Poland	28.5	27.5	3.3	11.6	10.4	11.8	9.2	8.3	10.2	2.5	2.1	18.1	40.8	37.7	3.1	8.6	7.5	1.1
Spain	21.2	21.6	(2.0)	6.5	7.0	(8.3)	6.0	6.6	(9.3)	0.4	0.4	8.7	29.1	30.2	(1.1)	2.2	1.6	0.6
SSEA, CIS & MEA
Egypt	38.5	46.0	(16.3)	11.7	10.2	15.0	11.3	9.9	14.2	0.5	0.3	37.9	30.4	22.5	7.9	1.4	0.8	0.6
Indonesia	141.1	149.5	(5.6)	40.5	42.3	(4.1)	40.5	42.3	(4.1)	—	—	—	28.7	28.3	0.4	—	—	—
Philippines	21.3	26.5	(19.7)	12.3	16.7	(26.3)	12.2	16.6	(26.6)	0.1	0.1	17.7	57.8	63.0	(5.2)	0.5	0.3	0.2
Russia	97.9	100.3	(2.4)	31.2	30.9	1.0	23.5	23.6	(0.4)	7.7	7.3	5.4	31.7	30.5	1.2	8.0	7.7	0.3
Turkey	62.3	55.5	12.4	31.3	25.5	22.7	31.3	25.5	22.7	—	—	—	50.3	46.1	4.2	—	—	—
EA, AU & PMI DF
Australia	3.8	4.5	(14.9)	1.3	1.5	(11.6)	1.3	1.5	(11.6)	—	—	—	34.2	32.9	1.3	—	—	—
Japan (2)	72.9	71.9	1.4	31.5	26.3	19.8	9.6	11.2	(14.4)	21.9	15.1	45.2	39.5	37.2	2.3	26.3	23.0	3.3
South Korea	35.4	35.6	(0.4)	6.9	6.8	1.1	4.4	4.6	(4.4)	2.5	2.2	12.6	19.5	19.3	0.2	6.9	6.2	0.7
Americas
Argentina	15.0	14.9	0.6	9.4	9.6	(2.5)	9.4	9.6	(2.5)	—	—	—	62.3	64.3	(2.0)	—	—	—
Mexico	13.5	14.5	(6.8)	8.3	9.2	(9.8)	8.3	9.2	(9.8)	0.1	0.1	2.3	61.9	63.9	(2.0)	0.4	0.4	—
(1) Market share estimates are calculated using IMS data, unless otherwise stated
(2) Total market and market share estimates include cigarillos in Japan
(3) PMI market share reflects estimated adjusted in-market sales volume share
Note: % change for Total Market and PMI shipments is computed based on millions of units. "-" indicates volume below 50 million units and market share below 0.1%

EX-99.2

Exhibit 99.2

Philip Morris International Inc.

Glossary of Key Terms, Definitions

and Explanatory Notes; and

Select Financial Information and Reconciliations of

Non-GAAP Financial Measures

2023 Second-Quarter Results

July 20, 2023

1

Glossary of Key Terms, Definitions

and Explanatory Notes

2

General

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

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

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

•As of the first quarter of 2022, total industry volume, PMI in-market sales volume and PMI market share for the following geographies include the cigarillo category in Japan: the total international market, EA, AU & PMI DF Region, and Japanese domestic market.

•References to total international market, defined as worldwide cigarette and heated tobacco unit volume excluding the U.S., total industry, 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.

•2022 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.

•"Combustible tobacco products" is the term PMI uses to refer to cigarettes and other tobacco products that are combusted.

•In-market sales, or "IMS," is defined as sales to the 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.

•"SSEA, CIS & MEA" stands for South & Southeast Asia, Commonwealth of Independent States, and Middle East & Africa.

•"EA, AU & PMI DF" stands for East Asia, Australia and PMI Duty Free.

•"Americas" refers to the former Latin America & Canada segment, which was renamed as the Americas segment as of the third quarter of 2021. References to "Americas" may, in defined instances, exclude the U.S.

•In the third quarter of 2021, PMI acquired Fertin Pharma A/S, Vectura Group plc. and OtiTopic, Inc. On March 31, 2022, PMI launched a new Wellness and Healthcare business consolidating these entities, Vectura Fertin Pharma. The operating results of this new business are reported in the Wellness and Healthcare segment. The business operations of PMI's Wellness and Healthcare segment are managed and evaluated separately from the geographical segments.

•As of December 31, 2022, Philip Morris Holland Holdings B.V. (“PMHH”), a wholly owned subsidiary of PMI, had acquired 94.81% of the outstanding shares of Swedish Match. On February 17, 2023, PMHH obtained "advanced title" under the Swedish Companies Act to the remaining issued and outstanding shares in Swedish Match, following the exercise of its right to compulsory redemption of all remaining shares. The operating results of Swedish Match are disclosed as a separate segment. The business operations of the Swedish Match segment are evaluated separately from the geographical segments.

•Following the deconsolidation of PMI's Canadian subsidiary, Rothmans, Benson & Hedges, Inc. (RBH) on March 22, 2019, PMI continues to report the volume and corresponding royalty revenues of brands sold by RBH for which other PMI subsidiaries are the trademark owner. These include HEETS, Next, Philip Morris and Rooftop. The volume and corresponding royalty revenues for these brands sold by RBH were not material to PMI for all periods presented.

3

•From time to time, PMI’s shipment volumes are subject to the impact of distributor inventory movements (or wholesaler inventory movements in certain markets where PMI does not sell to distributors), and estimated total industry/market volumes are subject to the impact of inventory movements in various trade channels that include estimated trade inventory movements of PMI’s competitors arising from market-specific factors that significantly distort reported volume disclosures. Such factors may include changes to the manufacturing supply chain, shipment methods, consumer demand, timing of excise tax increases or other influences that may affect the timing of sales to customers. In such instances, in addition to reviewing PMI shipment volumes 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.

•Volume comparisons versus Swedish Match's second-quarter 2022 results reflect data sourced from its disclosures, available at www.swedishmatch.com/investors.

Financial

•Adjusted net revenues exclude the impact related to the termination of a distribution arrangement in the Middle East.

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

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

•"Cost/Other" in the Consolidated Financial Summary table of total PMI and the six segments of this release reflects the currency-neutral variances of: cost of sales (excluding the volume/mix cost component); marketing, administration and research costs (including asset impairment and exit costs); and amortization and impairment 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 SSEA, CIS & MEA Region and the revenue adjustment for the termination of a distribution arrangement in the Middle East.

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

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

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

•Growth rates presented on an organic basis reflect adjusted results, excluding currency, acquisitions and disposals.

•Management reviews net revenues, 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. Additionally, starting in 2022 and on a comparative basis, for these measures other than net revenues and operating cash flow, PMI includes adjustments to add back amortization expense on acquisition related intangible assets that are recorded as part of purchase accounting and contribute to PMI’s revenue generation, as well as impairment of intangible assets, if any.Currency-neutral and organic growth rates reflect the way management views underlying performance for these measures. PMI believes that such measures provide useful insight into underlying business trends and results. Management reviews these measures because they exclude changes in currency exchange rates and other factors that may distort underlying business trends, thereby improving the comparability of PMI’s business performance between reporting periods. Furthermore, PMI uses several of these measures in its management compensation program to promote internal fairness

4

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 by PMI should neither be considered in isolation nor as a substitute for the financial measures prepared in accordance with U.S. GAAP. For a reconciliation of non-GAAP measures to the most directly comparable U.S. GAAP measures, see the "Select Financial Information and Reconciliations of Non-GAAP Financial Measures" section of this document.

•U.S. GAAP Treatment of a country as a Highly Inflationary Economy. Following the categorization of a country by the International Practices Task Force of the Center for Audit Quality as having a three-year cumulative inflation rate greater than 100%, the country is considered highly inflationary in accordance with U.S. GAAP. For such countries, PMI accounts for the operations of its local affiliates as highly inflationary, and to treat the U.S. dollar as the functional currency of the affiliates. Such treatment was effective July 1, 2018, for Argentina, and April 1, 2022, for Turkey.

•"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. 2022 adjustments reflect share price movements in PMI's investments in India and Sri Lanka.

•"Swedish Match AB acquisition accounting related item" refers to expenses associated with fair-value adjustments on Swedish Match inventories. In the fourth quarter of 2022, PMI recorded a total fair value step-up adjustment for inventories of $146 million related to the acquisition, of which $125 million was recognized in cost of sales in the fourth quarter of 2022, with the remaining amount recognized in the first quarter of 2023.

•"Tax benefit associated with Swedish Match AB financing" reflects a deferred tax benefit for unrealized foreign currency losses on intercompany loans related to the Swedish Match acquisition financing reflected in PMI's consolidated statements of earnings. The underlying pre-tax foreign currency movements fully offset in the consolidated statements of earnings and were reflected as currency translation adjustments in PMI's consolidated statements of stockholders' (deficit) equity.

Smoke-Free Products

•Smoke-free products ("SFPs") is the term PMI primarily uses to refer to all of its products that are not combustible tobacco products, such as heat-not-burn, e-vapor, and oral nicotine. In addition, SFPs include wellness and healthcare products, as well as consumer accessories such as lighters and matches.

•Reduced-risk products (“RRPs”) is the term PMI uses to refer to products that present or are likely 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 contain and/or generate far lower quantities of harmful and potentially harmful constituents than found in cigarette smoke.

•Wellness and Healthcare products primarily refer to products associated with inhaled therapeutics and oral and intra-oral delivery systems that are included in the operating results of PMI's new Wellness and Healthcare business, Vectura Fertin Pharma.

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

•Unless otherwise stated, market share for HTUs is defined as the in-market sales volume for HTUs as a percentage of the total estimated industry sales volume for cigarettes and HTUs. For Japan, total estimated industry sales volume also includes cigarillos.

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

•IQOS heat-not-burn devices are precisely controlled heating devices into which a specially designed and proprietary tobacco units are inserted and heated to generate an aerosol.

5

•"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 a portion of their daily tobacco consumption over the past seven days.

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

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

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

Note: The above IQOS user metrics reflect PMI estimates, which are based on consumer claims and sample-based statistical assessments with an average margin of error of +/-5% at a 95% Confidence Interval in key volume markets. The accuracy and reliability of IQOS user metrics may vary based on individual market maturity and availability of information.

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

•Swedish Match nicotine pouch products reflect 15 pouches per can in the U.S. and 21 pouches per can outside the U.S.

6

Select Financial Information and Reconciliations of Non-GAAP Financial Measures

7

								Schedule 1
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Diluted Earnings Per Share (EPS)
($ in millions, except per share data) / (Unaudited)
	Quarters Ended				Diluted EPS	Six Months Ended
	June 30,					June 30,
		$ 1.01			2023 Diluted Earnings Per Share (1)		$ 2.29
		$ 1.43			2022 Diluted Earnings Per Share (1)		$ 2.93
		$ (0.42)			Change		$ (0.64)
		(29.4)		%	% Change		(21.8)%
					Reconciliation:
		$ 1.43			2022 Diluted Earnings Per Share (1)		$ 2.93
		0.02			2022 Amortization of intangibles		0.04
		0.04			2022 Charges related to the war in Ukraine		0.07
		0.02			2022 Costs associated with Swedish Match AB offer		0.02
		(0.03)			2022 Tax Items		(0.03)
		—			2022 Fair value adjustment for equity security investments		0.03
		—			2023 Asset impairment and exit costs		(0.06)
		(0.04)			2023 Amortization of intangibles		(0.08)
		(0.44)			2023 Impairment of goodwill and other intangibles		(0.44)
		—			2023 Swedish Match AB acquisition accounting related item		(0.01)
		0.01			2023 Tax benefit associated with Swedish Match AB financing		0.06
		—			2023 Termination of distribution arrangement in the Middle East		(0.04)
		(0.11)			2023 South Korea indirect tax charge		(0.11)
		(0.01)			2023 Fair value adjustment for equity security investments		(0.01)
		(0.13)			Currency		(0.26)
		(0.08)			Interest		(0.12)
		0.04			Change in tax rate		0.04
		0.29			Operations (2)		0.26
		$ 1.01			2023 Diluted Earnings Per Share (1)		$ 2.29
(1) Basic and diluted EPS were calculated using the following (in millions):
	Quarters Ended					Six Months Ended
	June 30,					June 30,
	2023		2022			2023		2022
	$ 1,568		$ 2,233		Net Earnings attributable to PMI	$ 3,563		$ 4,564
	5		7		Less: Distributed and undistributed earnings attributable to share-based payment awards	11		13
	$ 1,563		$ 2,226		Net Earnings for basic and diluted EPS	$ 3,552		$ 4,551
	1,552		1,551		Weighted-average shares for basic EPS	1,552		1,550
	1		1		Plus Contingently Issuable Performance Stock Units	1		2
	1,553		1,552		Weighted-average shares for diluted EPS	1,553		1,552
(2) Includes the impact of shares outstanding and share-based payments

8

										Schedule 2
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Diluted EPS to Reported Diluted EPS, excluding Currency,
and Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS, excluding Currency
(Unaudited)
	Quarters Ended June 30,					Six Months Ended June 30,
	2023	2022	% Change			2023	2022	% Change
	$ 1.01	$ 1.43	(29.4)	%	Reported Diluted EPS	$ 2.29	$ 2.93	(21.8)	%
	(0.13)				Less: Currency	(0.26)
	$ 1.14	$ 1.43	(20.3)	%	Reported Diluted EPS, excluding Currency	$ 2.55	$ 2.93	(13.0)	%
	Quarters Ended June 30,					Six Months Ended June 30,					Year Ended
	2023	2022	% Change			2023	2022	% Change			2022
	$ 1.01	$ 1.43	(29.4)	%	Reported Diluted EPS	$ 2.29	$ 2.93	(21.8)	%		$ 5.81
	—	—			Asset impairment and exit costs	0.06	—				—
	—	—			Termination of distribution arrangement in the Middle East	0.04	—				—
	0.44	—			Impairment of goodwill and other intangibles	0.44	—				0.06
	0.04	0.02			Amortization of intangibles	0.08	0.04				0.09
	—	0.04			Charges related to the war in Ukraine	—	0.07				0.08
	—	0.02			Costs associated with Swedish Match AB offer	—	0.02				0.06
	—	—			Swedish Match AB acquisition accounting related item	0.01	—				0.06
	(0.01)	—			Tax benefit associated with Swedish Match AB financing	(0.06)	—				(0.13)
	0.11	—			South Korea indirect tax charge	0.11	—
	0.01	—			Fair value adjustment for equity security investments	0.01	0.03				(0.02)
	—	(0.03)			Tax items	—	(0.03)				(0.03)
	$ 1.60	$ 1.48	8.1	%	Adjusted Diluted EPS	$ 2.98	$ 3.06	(2.6)	%		$ 5.98
	(0.13)				Less: Currency	(0.26)
	$ 1.73	$ 1.48	16.9	%	Adjusted Diluted EPS, excluding Currency	$ 3.24	$ 3.06	5.9	%

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									Schedule 3
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Net Revenues by Product Category and Adjustments of Net Revenues for the Impact of Currency and Acquisitions
($ in millions) / (Unaudited)
Net Revenues	Currency	Net Revenues excluding Currency	Acqui- sitions	Net Revenues excl. Currency & Acquisitions	Quarters Ended June 30,	Net Revenues	Total		Excluding Currency		Excluding Currency & Acquisitions
2023					Combustible Tobacco	2022	% Change
$ 2,108	$ (12)	$ 2,121	$ —	$ 2,121	Europe	$ 2,062	2.2	%	2.8	%	2.8	%
2,350	(187)	2,537	—	2,537	SSEA, CIS & MEA	2,203	6.7	%	15.2	%	15.2	%
724	(39)	763	—	763	EA, AU & PMI DF	754	(4.0)	%	1.2	%	1.2	%
459	14	444	—	444	Americas	444	3.3	%	0.1	%	0.1	%
149	—	149	149	—	Swedish Match	—	—	%	—	%	—	%
$ 5,790	$ (224)	$ 6,014	$ 149	$ 5,865	Total Combustible Tobacco	$ 5,463	6.0	%	10.1	%	7.4	%
2023					Smoke-free excl. W&H	2022	% Change
$ 1,294	$ 1	$ 1,292	$ —	$ 1,292	Europe	$ 1,247	3.8	%	3.7	%	3.7	%
318	(34)	352	—	352	SSEA, CIS & MEA	311	2.1	%	13.0	%	13.0	%
956	(94)	1,050	—	1,050	EA, AU & PMI DF	710	34.7	%	47.9	%	47.9	%
17	—	18	—	18	Americas	25	(31.0)	%	(29.3)	%	(29.3)	%
516	—	516	516	—	Swedish Match	—	—	%	—	%	—	%
$ 3,101	$ (127)	$ 3,228	$ 516	$ 2,712	Total Smoke-free excl. W&H	$ 2,293	35.3	%	40.8	%	18.3	%
2023					Wellness and Healthcare	2022	% Change
$ 76	$ —	$ 76	$ —	$ 76	Wellness and Healthcare	$ 76	—	%	—	%	—	%
2023					Smoke-free incl. W&H	2022	% Change
$ 3,177	$ (127)	$ 3,304	$ 516	$ 2,788	Smoke-free incl. W&H	$ 2,369	34.1	%	39.5	%	17.7	%
2023					PMI	2022	% Change
$ 3,402	$ (11)	$ 3,413	$ —	$ 3,413	Europe	$ 3,309	2.8	%	3.1	%	3.1	%
2,668	(221)	2,889	—	2,889	SSEA, CIS & MEA	2,514	6.1	%	14.9	%	14.9	%
1,680	(133)	1,813	—	1,813	EA, AU & PMI DF	1,464	14.8	%	23.8	%	23.8	%
476	14	462	—	462	Americas	469	1.5	%	(1.5)	%	(1.5)	%
665	—	665	665	—	Swedish Match	—	—	%	—	%	—	%
76	—	76	—	76	Wellness and Healthcare	76	—	%	—	%	—	%
$ 8,967	$ (351)	$ 9,318	$665	$ 8,653	Total PMI	$ 7,832	14.5	%	19.0	%	10.5	%
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

10

										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	Acqui- sitions	Net Revenues excl. Currency & Acquisitions	Six Months Ended June 30,	Net Revenues	Total		Excluding Currency		Excluding Currency & Acquisitions
2023						Combustible Tobacco	2022	% Change
$ 3,924		$ (133)	$ 4,057	$ —	$ 4,057	Europe	$ 3,999	(1.9)	%	1.4	%	1.4	%
4,504	(1)	(317)	4,821	—	4,821	SSEA, CIS & MEA	4,398	2.4	%	9.6	%	9.6	%
1,412		(93)	1,505	—	1,505	EA, AU & PMI DF	1,523	(7.2)	%	(1.2)	%	(1.2)	%
889		24	865	—	865	Americas	846	5.0	%	2.2	%	2.2	%
284		—	284	284	—	Swedish Match	—	—	%	—	%	—	%
$ 11,013		$ (519)	$ 11,532	$284	$ 11,248	Total Combustible Tobacco	$ 10,766	2.3	%	7.1	%	4.5	%
2023						Smoke-free excl. W&H	2022	% Change
$ 2,388		$ (75)	$ 2,463	$ —	$ 2,463	Europe	$ 2,534	(5.7)	%	(2.8)	%	(2.8)	%
641		(15)	656	—	656	SSEA, CIS & MEA	561	14.3	%	17.0	%	17.0	%
1,788		(210)	1,998	—	1,998	EA, AU & PMI DF	1,528	17.0	%	30.7	%	30.7	%
32		(1)	33	—	33	Americas	47	(30.6)	%	(28.9)	%	(28.9)	%
962		—	962	962	—	Swedish Match	—	—	%	—	%	—	%
$ 5,811		$ (301)	$ 6,112	$962	$ 5,150	Total Smoke-free excl. W&H	$ 4,670	24.4	%	30.9	%	10.3	%
2023						Wellness and Healthcare	2022	% Change
$ 162		$ (5)	$167	$—	$ 167	Wellness and Healthcare	$ 142	14.1	%	17.6	%	17.6	%
2023						Smoke-free incl. W&H	2022	% Change
$ 5,973		$ (306)	$ 6,279	$ 962	$ 5,317	Smoke-free incl. W&H	$ 4,812	24.1	%	30.5	%	10.5	%
2023						PMI	2022	% Change
$ 6,312		$ (208)	$ 6,520	$ —	$ 6,520	Europe	$ 6,533	(3.4)	%	(0.2)	%	(0.2)	%
5,145	(1)	(332)	5,477	—	5,477	SSEA, CIS & MEA	4,959	3.8	%	10.4	%	10.4	%
3,200		(303)	3,503	—	3,503	EA, AU & PMI DF	3,051	4.9	%	14.8	%	14.8	%
921		23	898	—	898	Americas	893	3.1	%	0.6	%	0.6	%
1,246		—	1,246	1,246	—	Swedish Match	—	—	%	—	%	—	%
162		(5)	167	—	167	Wellness and Healthcare	142	14.1	%	17.6	%	17.6	%
$ 16,986		$ (825)	$ 17,811	$1,246	$ 16,565	Total PMI	$ 15,578	9.0	%	14.3	%	6.3	%
(1) Includes a reduction in net revenues of $80 million related to the termination of distribution arrangement in the Middle East
Note: Sum of product categories or Regions might not foot to Total PMI due to roundings. "-" indicates amounts between -$0.5 million and +$0.5 million

11

															Schedule 5
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Net Revenues to Adjusted Net Revenues, excluding Currency and Acquisitions
($ in millions) / (Unaudited)
Net Revenues	Special Items		Adjusted Net Revenues	Currency	Adjusted Net Revenues excluding Currency	Acqui- sitions	Adjusted Net Revenues excluding Currency & Acqui- sitions			Net Revenues	Special Items	Adjusted Net Revenues	Total		Excluding Currency		Excluding Currency & Acqui- sitions
2023								Quarters Ended June 30,		2022			% Change
$ 3,402	$ —		$ 3,402	$ (11)	$ 3,413	$ —	$ 3,413		Europe	$ 3,309	$ —	$ 3,309	2.8	%	3.1	%	3.1	%
2,668	—		2,668	(221)	2,889	—	2,889		SSEA, CIS & MEA	2,514	—	2,514	6.1	%	14.9	%	14.9	%
1,680	—		1,680	(133)	1,813	—	1,813		EA, AU & PMI DF	1,464	—	1,464	14.8	%	23.8	%	23.8	%
476	—		476	14	462	—	462		Americas	469	—	469	1.5	%	(1.5)	%	(1.5)	%
665	—		665	—	665	665	—		Swedish Match	—	—	—	—	%	—	%	—	%
76	—		76	—	76	—	76		Wellness and Healthcare	76	—	76	—	%	—	%	—	%
$ 8,967	$ —		$ 8,967	$ (351)	$ 9,318	$ 665	$ 8,653		Total PMI	$ 7,832	$ —	$ 7,832	14.5	%	19.0	%	10.5	%
2023								Six Months Ended June 30,		2022			% Change
$ 6,312	$ —		$ 6,312	$ (208)	$ 6,520	$ —	$ 6,520		Europe	$ 6,533	$ —	$ 6,533	(3.4)	%	(0.2)	%	(0.2)	%
5,145	(80)	(1)	5,225	(332)	5,557	—	5,557		SSEA, CIS & MEA	4,959	—	4,959	5.4	%	12.1	%	12.1	%
3,200	—		3,200	(303)	3,503	—	3,503		EA, AU & PMI DF	3,051	—	3,051	4.9	%	14.8	%	14.8	%
921	—		921	23	898	—	898		Americas	893	—	893	3.1	%	0.6	%	0.6	%
1,246	—		1,246	—	1,246	1,246	—		Swedish Match	—	—	—	—	%	—	%	—	%
162	—		162	(5)	167	—	167		Wellness and Healthcare	142	—	142	14.1	%	17.6	%	17.6	%
$ 16,986	$ (80)		$ 17,066	$ (825)	$ 17,891	$ 1,246	$ 16,645		Total PMI	$ 15,578	$ —	$ 15,578	9.6	%	14.8	%	6.8	%
(1) Reflects a reduction in net revenues of $80 million related to the termination of distribution arrangement in the Middle East

12

									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	Acqui-sitions	Operating Income excluding Currency & Acquisitions		Operating Income	Total		Excluding Currency		Excluding Currency & Acquisitions
2023					Quarters Ended June 30,	2022	% Change
$ 1,563	$ 31	$ 1,532	$ —	$ 1,532	Europe	$ 1,474	6.0	%	3.9	%	3.9	%
858	(98)	956	—	956	SSEA, CIS & MEA	958	(10.4)	%	(0.2)	%	(0.2)	%
544	(130)	674	—	674	EA, AU & PMI DF	528	3.0	%	27.7	%	27.7	%
70	(26)	96	—	96	Americas	130	(46.2)	%	(26.2)	%	(26.2)	%
264	—	264	264	—	Swedish Match	—	—	%	—	%	—	%
(733)	(3)	(730)	—	(730)	Wellness and Healthcare	(34)	-(100)%		-(100)%		-(100)%
$ 2,566	$ (226)	$ 2,792	$ 264	$ 2,528	Total PMI	$ 3,056	(16.0)	%	(8.6)	%	(17.3)	%
2023					Six Months Ended June 30,	2022	% Change
$ 2,738	$ (60)	$ 2,798	$ —	$ 2,798	Europe	$ 3,032	(9.7)	%	(7.7)	%	(7.7)	%
1,570	(142)	1,712	—	1,712	SSEA, CIS & MEA	1,923	(18.4)	%	(11.0)	%	(11.0)	%
1,167	(245)	1,412	—	1,412	EA, AU & PMI DF	1,213	(3.8)	%	16.4	%	16.4	%
136	(36)	172	—	172	Americas	251	(45.8)	%	(31.5)	%	(31.5)	%
457	—	457	457	—	Swedish Match	—	—	%	—	%	—	%
(771)	(2)	(769)	—	(769)	Wellness and Healthcare	(65)	-(100)%		-(100)%		-(100)%
$ 5,297	$ (485)	$ 5,782	$ 457	$ 5,325	Total PMI	$ 6,354	(16.6)	%	(9.0)	%	(16.2)	%

13

														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	Special Items (1)	Adjusted Operating Income	Currency	Adjusted Operating Income excluding Currency	Acqui- sitions	Adjusted Operating Income excluding Currency & Acqui- sitions			Operating Income	Special Items (1)	Adjusted Operating Income	Total		Excluding Currency		Excluding Currency & Acqui- sitions
2023							Quarters Ended June 30,		2022			% Change
$ 1,563	$ (10)	$ 1,573	$ 31	$ 1,542	$ —	$ 1,542		Europe	$ 1,474	$ (113)	$ 1,587	(0.9)	%	(2.8)	%	(2.8)	%
858	(5)	863	(98)	961	—	961		SSEA, CIS & MEA	958	(21)	979	(11.8)	%	(1.8)	%	(1.8)	%
544	(205)	749	(130)	879	—	879		EA, AU & PMI DF	528	(12)	540	38.7	%	62.8	%	62.8	%
70	(2)	72	(26)	98	—	98		Americas	130	(4)	134	(46.3)	%	(26.9)	%	(26.9)	%
264	(49)	313	—	313	313	—		Swedish Match	—	—	—	—	%	—	%	—	%
(733)	(695)	(38)	(3)	(35)	—	(35)		Wellness and Healthcare	(34)	(18)	(16)	-(100)%		-(100)%		-(100)%
$ 2,566	$ (966)	$ 3,532	$ (226)	$ 3,758	$ 313	$ 3,445		Total PMI	$ 3,056	$ (168)	$ 3,224	9.6	%	16.6	%	6.9	%
2023							Six Months Ended June 30,		2022			% Change
$ 2,738	$ (69)	$ 2,807	$ (60)	$ 2,867	$ —	$ 2,867		Europe	$ 3,032	$ (165)	$ 3,197	(12.2)	%	(10.3)	%	(10.3)	%
1,570	(124)	1,694	(142)	1,836	—	1,836		SSEA, CIS & MEA	1,923	(27)	1,950	(13.1)	%	(5.8)	%	(5.8)	%
1,167	(226)	1,393	(245)	1,638	—	1,638		EA, AU & PMI DF	1,213	(13)	1,226	13.6	%	33.6	%	33.6	%
136	(9)	145	(36)	181	—	181		Americas	251	(6)	257	(43.6)	%	(29.6)	%	(29.6)	%
457	(117)	574	—	574	574	—		Swedish Match	—	—	—	—	%	—	%	—	%
(771)	(709)	(62)	(2)	(60)	—	(60)		Wellness and Healthcare	(65)	(37)	(28)	-(100)%		-(100)%		-(100)%
$ 5,297	$ (1,254)	$ 6,551	$ (485)	$ 7,036	$ 574	$ 6,462		Total PMI	$ 6,354	$ (248)	$ 6,602	(0.8)	%	6.6	%	(2.1)	%
(1) See Schedule 8 and 9 for Special Items details

14

											Schedule 8 (1/2)
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Operating Income to Adjusted Operating Income
($ in millions) / (Unaudited)
	Quarters Ended June 30,		Change Fav./(Unfav.)				Variance Fav./(Unfav.)
PMI	2023	2022	Total		Excl. Curr. & Acquisitions		Total	Currency	Acquisitions	Price	Vol/Mix	Cost/Other
Reported Operating Income	$ 2,566	$ 3,056	(16.0)	%	(17.3)	%	$ (490)	$ (226)	$ 264	$ 459	$ 127	$ (1,114)
Amortization of intangibles	(82)	(36)	-(100)%		8.3	%	(46)	—	(49)	—	—	3
Impairment of goodwill and other intangibles	(680)	—	-(100)%		-(100)%		(680)	—	—	—	—	(680)
Charges related to the war in Ukraine	—	(80)	+100%		+100%		80	—	—	—	—	80
Costs associated with Swedish Match AB offer	—	(52)	+100%		+100%		52	—	—	—	—	52
South Korea Indirect Tax Charge	(204)	—	—	%	—	%	(204)	—	—	—	—	(204)
Adjusted Operating Income	$ 3,532	$ 3,224	9.6	%	6.9	%	$ 308	$ (226)	$ 313	$ 459	$ 127	$ (365)
Europe
Reported Operating Income	$ 1,563	$ 1,474	6.0	%	3.9	%	$ 89	$ 31	$ —	$ 149	$ (56)	$ (35)
Amortization of intangibles	(10)	(9)	(11.1)	%	(11.1)	%	(1)	—	—	—	—	(1)
Charges related to the war in Ukraine	—	(80)	+100%		+100%		80	—	—	—	—	80
Costs associated with Swedish Match AB offer	—	(24)	+100%		+100%		24	—	—	—	—	24
Adjusted Operating Income	$ 1,573	$ 1,587	(0.9)	%	(2.8)	%	$ (14)	$ 31	$ —	$ 149	$ (56)	$ (138)
SSEA, CIS & MEA
Reported Operating Income	$ 858	$ 958	(10.4)	%	(0.2)	%	$ (100)	$ (98)	$ —	$ 253	$ (35)	$ (220)
Amortization of intangibles	(5)	(6)	16.7	%	16.7	%	1	—	—	—	—	1
Costs associated with Swedish Match AB offer	—	(15)	+100%		+100%		15	—	—	—	—	15
Adjusted Operating Income	$ 863	$ 979	(11.8)	%	(1.8)	%	$ (116)	$ (98)	$ —	$ 253	$ (35)	$ (236)

15

											Schedule 8 (2/2)
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Operating Income to Adjusted Operating Income
($ in millions) / (Unaudited)
	Quarters Ended June 30,		Change Fav./(Unfav.)				Variance Fav./(Unfav.)
EA, AU & PMI DF	2023	2022	Total		Excl. Curr. & Acquisitions		Total	Currency	Acqui-sitions	Price	Vol/Mix	Cost/Other
Reported Operating Income	$ 544	$ 528	3.0	%	27.7	%	$ 16	$ (130)	$ —	$ 23	$ 244	$ (121)
Amortization of intangibles	(1)	(1)	—	%	—	%	—	—	—	—	—	—
Costs associated with Swedish Match AB offer	—	(11)	+100%		+100%		11	—	—	—	—	11
South Korea Indirect Tax Charge	(204)	—	—	%	—	%	(204)	—	—	—	—	(204)
Adjusted Operating Income	$ 749	$ 540	38.7	%	62.8	%	$ 209	$ (130)	$ —	$ 23	$ 244	$ 72
Americas
Reported Operating Income	$ 70	$ 130	(46.2)	%	(26.2)	%	$ (60)	$ (26)	$ —	$ 36	$ (26)	$ (44)
Amortization of intangibles	(2)	(2)	—	%	—	%	—	—	—	—	—	—
Costs associated with Swedish Match AB offer	—	(2)	+100%		+100%		2	—	—	—	—	2
Adjusted Operating Income	$ 72	$ 134	(46.3)	%	(26.9)	%	$ (62)	$ (26)	$ —	$ 36	$ (26)	$ (46)
Swedish Match
Reported Operating Income	$ 264	$ —	—	%	—	%	$ 264	$ —	$ 264	$ —	$ —	$ —
Amortization of intangibles	(49)	—	—	%	—	%	(49)	—	(49)	—	—	—
Adjusted Operating Income	$ 313	$ —	—	%	—	%	$ 313	$ —	$ 313	$ —	$ —	$ —
Wellness & Healthcare
Reported Operating Income / (Loss)	$ (733)	$ (34)	-(100)%		-(100)%		$ (699)	$ (3)	$ —	$ (2)	$ —	$ (694)
Amortization of intangibles	(15)	(18)	16.7	%	16.7	%	3	—	—	—	—	3
Impairment of goodwill and other intangibles	(680)	—	-(100)%		-(100)%		(680)	—	—	—	—	(680)
Adjusted Operating Income / (Loss)	$ (38)	$ (16)	-(100)%		-(100)%		$ (22)	$ (3)	$ —	$ (2)	$ —	$ (17)

16

											Schedule 9 (1/2)
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Operating Income to Adjusted Operating Income
($ in millions) / (Unaudited)
	Six Months Ended June 30,		Change Fav./(Unfav.)				Variance Fav./(Unfav.)
PMI	2023	2022	Total		Excl. Curr. & Acquisitions		Total	Currency	Acquisitions	Price	Vol/Mix	Cost/Other
Reported Operating Income	$ 5,297	$ 6,354	(16.6)	%	(16.2)	%	$ (1,057)	$ (485)	$ 457	$ 796	$ (104)	$ (1,721)
Asset Impairment & Exit Costs	(109)	—	—	%	—	%	(109)	—	—	—	—	(109)
Termination of distribution arrangement in the Middle East	(80)	—	—	%	—	%	(80)	—	—	—	—	(80)
Amortization of intangibles	(163)	(74)	-(100)%		13.5	%	(89)	—	(99)	—	—	10
Impairment of goodwill and other intangibles	(680)	—	—	%	—	%	(680)	—	—	—	—	(680)
Charges related to the war in Ukraine	—	(122)	+100%		+100%		122	—	—	—	—	122
Costs associated with Swedish Match AB offer	—	(52)	+100%		+100%		52	—	—	—	—	52
Swedish Match AB acquisition accounting related items	(18)	—	—	%	—	%	(18)	—	(18)	—	—	—
South Korea Indirect Tax Charge	(204)	—	—	%	—	%	(204)	—	—	—	—	(204)
Adjusted Operating Income	$ 6,551	$ 6,602	(0.8)	%	(2.1)	%	$ (51)	$ (485)	$ 574	$ 796	$ (104)	$ (832)
Europe
Reported Operating Income	$ 2,738	$ 3,032	(9.7)	%	(7.7)	%	$ (294)	$ (60)	$ —	$ 177	$ (236)	$ (175)
Asset Impairment & Exit Costs	(49)	—	—	%	—	%	(49)	—	—	—	—	(49)
Amortization of intangibles	(20)	(19)	(5.3)	%	(5.3)	%	(1)	—	—	—	—	(1)
Charges related to the war in Ukraine	—	(122)	+100%		+100%		122	—	—	—	—	122
Costs associated with Swedish Match AB offer	—	(24)	+100%		+100%		24	—	—	—	—	24
Adjusted Operating Income	$ 2,807	$ 3,197	(12.2)	%	(10.3)	%	$ (390)	$ (60)	$ —	$ 177	$ (236)	$ (271)
SSEA, CIS & MEA
Reported Operating Income	$ 1,570	$ 1,923	(18.4)	%	(11.0)	%	$ (353)	$ (142)	$ —	$ 486	$ (114)	$ (583)
Asset Impairment & Exit Costs	(34)	—	—	%	—	%	(34)	—	—	—	—	(34)
Termination of distribution arrangement in the Middle East	(80)	—	—	%	—	%	(80)	—	—	—	—	(80)
Amortization of intangibles	(10)	(12)	16.7	%	16.7	%	2	—	—	—	—	2
Costs associated with Swedish Match AB offer	—	(15)	+100%		+100%		15	—	—	—	—	15
Adjusted Operating Income	$ 1,694	$ 1,950	(13.1)	%	(5.8)	%	$ (256)	$ (142)	$ —	$ 486	$ (114)	$ (486)

17

											Schedule 9 (2/2)
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Reported Operating Income to Adjusted Operating Income
($ in millions) / (Unaudited)
	Six Months Ended June 30,		Change Fav./(Unfav.)				Variance Fav./(Unfav.)
EA, AU & PMI DF	2023	2022	Total		Excl. Curr. & Acquisitions		Total	Currency	Acquisitions	Price	Vol/Mix	Cost/Other
Reported Operating Income	$ 1,167	$ 1,213	(3.8)	%	16.4	%	$ (46)	$ (245)	$ —	$ 37	$ 289	$ (127)
Asset Impairment & Exit Costs	(21)	—	—	%	—	%	(21)	—	—	—	—	(21)
Amortization of intangibles	(1)	(2)	50.0	%	50.0	%	1	—	—	—	—	1
Costs associated with Swedish Match AB offer	—	(11)	+100%		+100%		11	—	—	—	—	11
South Korea Indirect Tax Charge	(204)	—	—	%	—	%	(204)	—	—	—	—	(204)
Adjusted Operating Income	$ 1,393	$ 1,226	13.6	%	33.6	%	$ 167	$ (245)	$ —	$ 37	$ 289	$ 86
Americas
Reported Operating Income	$ 136	$ 251	(45.8)	%	(31.5)	%	$ (115)	$ (36)	$ —	$ 73	$ (43)	$ (109)
Asset Impairment & Exit Costs	(5)	—	—	%	—	%	(5)	—	—	—	—	(5)
Amortization of intangibles	(4)	(4)	—	%	—	%	—	—	—	—	—	—
Costs associated with Swedish Match AB offer	—	(2)	+100%		+100%		2	—	—	—	—	2
Adjusted Operating Income	$ 145	$ 257	(43.6)	%	(29.6)	%	$ (112)	$ (36)	$ —	$ 73	$ (43)	$ (106)
Swedish Match
Reported Operating Income	$ 457	$ —	—	%	—	%	$ 457	$ —	$ 457	$ —	$ —	$ —
Amortization of intangibles	(99)	—	—	%	—	%	(99)	—	(99)	—	—	—
Swedish Match AB acquisition accounting related items	(18)	—	—	%	—	%	(18)	—	(18)	—	—	—
Adjusted Operating Income	$ 574	$ —	—	%	—	%	$ 574	$ —	$ 574	$ —	$ —	$ —
Wellness & Healthcare
Reported Operating Income	$ (771)	$ (65)	-(100)%		-(100)%		$ (706)	$ (2)	$ —	$ 23	$ —	$ (727)
Amortization of intangibles	(29)	(37)	21.6	%	21.6	%	8	—	—	—	—	8
Impairment of goodwill and other intangibles	(680)	—	-(100)%		-(100)%		(680)	—	—	—	—	(680)
Adjusted Operating Income	$ (62)	$ (28)	-(100)%		-(100)%		$ (34)	$ (2)	$ —	$ 23	$ —	$ (55)

18

																			Schedule 10
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Adjusted Operating Income Margin, excluding Currency and Acquisitions
($ in millions) / (Unaudited)
Adjusted Operating Income (1)	Adjusted Net Revenues (2)	Adjusted Operating Income Margin		Adjusted Operating Income excluding Currency (1)	Adjusted Net Revenues excluding Currency (2)	Adjusted Operating Income Margin excluding Currency		Adjusted Operating Income excluding Currency & Acqui- sitions (1)	Adjusted Net Revenues excluding Currency & Acqui- sitions (2)	Adjusted Operating Income Margin excluding Currency & Acqui- sitions				Adjusted Operating Income (1)	Adjusted Net Revenues (2)	Adjusted Operating Income Margin		Adjusted Operating Income Margin	Adjusted Operating Income Margin excluding Currency	Adjusted Operating Income Margin excluding Currency & Acqui- sitions
2023												Quarters Ended June 30,		2022				% Points Change
$ 1,573	$ 3,402	46.2	%	$ 1,542	$ 3,413	45.2	%	$ 1,542	$ 3,413	45.2	%		Europe	$ 1,587	$ 3,309	48.0	%	(1.8)	(2.8)	(2.8)
863	2,668	32.3	%	961	2,889	33.3	%	961	2,889	33.3	%		SSEA, CIS & MEA	979	2,514	38.9	%	(6.6)	(5.6)	(5.6)
749	1,680	44.6	%	879	1,813	48.5	%	879	1,813	48.5	%		EA, AU & PMI DF	540	1,464	36.9	%	7.7	11.6	11.6
72	476	15.1	%	98	462	21.2	%	98	462	21.2	%		Americas	134	469	28.6	%	(13.5)	(7.4)	(7.4)
313	665	47.1	%	313	665	47.1	%	—	—	—	%		Swedish Match	—	—	—	%	—	—	—
(38)	76	(50.0)	%	(35)	76	(46.1)	%	(35)	76	(46.1)	%		Wellness and Healthcare	(16)	76	(21.1)	%	(28.9)	(25.0)	(25.0)
$ 3,532	$ 8,967	39.4	%	$ 3,758	$ 9,318	40.3	%	$ 3,445	$ 8,653	39.8	%		Total PMI	$ 3,224	$ 7,832	41.2	%	(1.8)	(0.9)	(1.4)
2023												Six Months Ended June 30,		2022				% Points Change
$ 2,807	$ 6,312	44.5	%	$ 2,867	$ 6,520	44.0	%	$ 2,867	$ 6,520	44.0	%		Europe	$ 3,197	$ 6,533	48.9	%	(4.4)	(4.9)	(4.9)
1,694	5,225	32.4	%	1,836	5,557	33.0	%	1,836	5,557	33.0	%		SSEA, CIS & MEA	1,950	4,959	39.3	%	(6.9)	(6.3)	(6.3)
1,393	3,200	43.5	%	1,638	3,503	46.8	%	1,638	3,503	46.8	%		EA, AU & PMI DF	1,226	3,051	40.2	%	3.3	6.6	6.6
145	921	15.7	%	181	898	20.2	%	181	898	20.2	%		Americas	257	893	28.8	%	(13.1)	(8.6)	(8.6)
574	1,246	46.1	%	574	1,246	46.1	%	—	—	—	%		Swedish Match	—	—	—	%	—	—	—
(62)	162	(38.3)	%	(60)	167	(35.9)	%	(60)	167	(35.9)	%		Wellness and Healthcare	(28)	142	(19.7)	%	(18.6)	(16.2)	(16.2)
$ 6,551	$ 17,066	38.4	%	$ 7,036	$ 17,891	39.3	%	$ 6,462	$ 16,645	38.8	%		Total PMI	$ 6,602	$ 15,578	42.4	%	(4.0)	(3.1)	(3.6)
(1) For the calculation of Adjusted Operating Income and Adjusted Operating Income excluding currency and acquisitions refer to Schedule 8 and 9
(2) For the calculation of Adjusted Net Revenues excluding currency and acquisitions refer to Schedule 5

19

								Schedule 11
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Condensed Statements of Earnings
($ in millions, except per share data) / (Unaudited)
	Quarters Ended June 30,					Six Months Ended June 30,
	2023	2022	Change Fav./(Unfav.)			2023	2022	Change Fav./(Unfav.)
	8,967	7,832	14.5	%	Net Revenues	16,986	15,578	9.0	%
	3,228	2,648	(21.9)	%	Cost of sales	6,266	5,256	(19.2)	%
	5,739	5,184	10.7	%	Gross profit	10,720	10,322	3.9	%
	3,173	2,128	(49.1)	%	Marketing, administration and research costs	5,423	3,968	(36.7)	%
	2,566	3,056	(16.0)	%	Operating Income	5,297	6,354	(16.6)	%
	297	126	-(100)%		Interest expense, net	527	280	(88.2)	%
	6	5	(20.0)	%	Pension and other employee benefit costs	28	9	-(100)%
	2,263	2,925	(22.6)	%	Earnings before income taxes	4,742	6,065	(21.8)	%
	560	594	5.7	%	Provision for income taxes	988	1,213	18.5	%
	21	(15)	(100.0)	%	Equity investments and securities (income)/loss, net	(30)	41	+100%
	1,682	2,346	(28.3)	%	Net Earnings	3,784	4,811	(21.3)	%
	114	113	0.9	%	Net Earnings attributable to noncontrolling interests	221	247	(10.5)	%
	$ 1,568	$ 2,233	(29.8)	%	Net Earnings attributable to PMI	$ 3,563	$ 4,564	(21.9)	%
					Per share data: (1)
	$ 1.01	$ 1.44	(29.9)	%	Basic Earnings Per Share	$ 2.29	$ 2.94	(22.1)	%
	$ 1.01	$ 1.43	(29.4)	%	Diluted Earnings Per Share	$ 2.29	$ 2.93	(21.8)	%
(1) Net Earnings and weighted-average shares used in the basic and diluted Earnings Per Share computations for the quarters and six months ended June 30, 2023 and 2022 are shown on Schedule 1, Footnote 1

20

				Schedule 12
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Condensed Balance Sheets
($ in millions) / (Unaudited)
	June 30,			December 31,
	2023			2022
Assets
Cash and cash equivalents		$	3,492		$	3,207
All other current assets		16,344			16,412
Property, plant and equipment, net		6,991			6,710
Goodwill		19,236			19,655
Other intangible assets, net		6,630			6,732
Equity investments		4,747			4,431
Other assets		4,428			4,534
Total assets		$	61,868		$	61,681
Liabilities and Stockholders' (Deficit) Equity
Short-term borrowings		$	4,121		$	5,637
Current portion of long-term debt		2,372			2,611
All other current liabilities		16,752			19,088
Long-term debt		41,400			34,875
Deferred income taxes		1,710			1,956
Other long-term liabilities		3,473			3,825
Total liabilities		69,828			67,992
Total PMI stockholders' deficit		(9,703)			(8,957)
Noncontrolling interests		1,743			2,646
Total stockholders' (deficit) equity		(7,960)			(6,311)
Total liabilities and stockholders' (deficit) equity		$	61,868		$	61,681

21

										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 June 30, 2023									Year Ended December 31, 2022
	July ~ December			January ~ June			12 months
	2022			2023			rolling
Net Earnings		$	4,716		$	3,784		$	8,500		$	9,527
Equity investments and securities (income)/loss, net		(178)			(30)			(208)			(137)
Provision for income taxes		1,031			988			2,019			2,244
Interest expense, net		308			527			835			588
Depreciation, amortization and impairment of goodwill and other intangibles		649			1,280			1,929			1,189
Asset impairment and exit costs and Others (1)		217			411			628			391
Adjusted EBITDA		$	6,743		$	6,960		$	13,703		$	13,802
							June 30,			December 31,
							2023			2022
Short-term borrowings								$	4,121		$	5,637
Current portion of long-term debt								2,372			2,611
Long-term debt								41,400			34,875
Total Debt								$	47,893		$	43,123
Cash and cash equivalents								3,492			3,207
Net Debt								$	44,401		$	39,916
Ratios:
Total Debt to Adjusted EBITDA								3.50			3.12
Net Debt to Adjusted EBITDA								3.24			2.89
(1) For the period January 2023 to June 2023 "Others" includes South Korea indirect tax charge $204 million, a reduction in revenues of $80 million related to the termination of distribution arrangement in the Middle East and $18 million of Swedish Match AB acquisition accounting related items. For the period July 2022 to December 2022 "Others" includes $125 million for Swedish Match AB acquisition accounting related item, $63 million of costs associated with Swedish Match AB offer and $29 million of charges related to the war in Ukraine.

22

								Schedule 14
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Non-GAAP Measures
Reconciliation of Operating Cash Flow to Operating Cash Flow, excluding Currency
($ in millions) / (Unaudited)
	Quarters Ended June 30,					Six Months Ended June 30,
	2023	2022	% Change			2023	2022	% Change
	$ 3,442	$ 3,524	(2.3)	%	Net cash provided by operating activities (1)	$ 2,487	$ 4,642	(46.4)	%
	(423)				Less: Currency	(652)
	$ 3,865	$ 3,524	9.7	%	Net cash provided by operating activities, excluding currency	$ 3,139	$ 4,642	(32.4)	%
(1) Operating cash flow

23

										Schedule 15
PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries
Reconciliation of Adjusted Net Revenues – PMI and Swedish Match Combined
($ in millions) / (Unaudited)
Quarters Ended June 30,							Six Months Ended June 30,
2023	2022	Total	Currency	Var. excl. currency			2023	2022	Total	Currency	Var. excl. currency
						Total PMI
$ 8,967	$ 7,832	$ 1,135	$ (351)	19.0	%	Net Revenues	$ 16,986	$ 15,578	$ 1,408	$ (825)	14.3	%
—	—	—	—	—		Adjustments (1)	(80)	—	(80)	—	—
$ 8,967	$ 7,832	$ 1,135	$ (351)	19.0	%	Adjusted Net Revenues	$ 17,066	$ 15,578	$ 1,488	$ (825)	14.8	%
						Swedish Match
$ 665	$ —	$ 665	$ —	—		Net Revenues	$ 1,246	$ —	$ 1,246	$ —	—
						Total PMI excl. Swedish Match
$ 8,302	$ 7,832	$ 470	$ (351)	10.5	%	Adjusted Net Revenues	$ 15,820	$ 15,578	$ 242	$ (825)	6.8	%
						Pro Forma Swedish Match Financial Information
$ 665	$ 557	$ 108	$ 2	19.1	%	Net Revenues	$ 1,246	$ 1,046	$ 200	$ 23	16.8	%
						Pro Forma Combined Financial Information
$ 8,967	$ 8,389	$ 578	$ (349)	11.1	%	Adjusted Net Revenues	$ 17,066	$ 16,624	$ 442	$ (802)	7.5	%
(1) Reflects a reduction in net revenues related to the termination of distribution arrangement in the Middle East
The unaudited pro forma combined financial information was prepared using the acquisition method of accounting and was based on the historical financial information of PMI and Swedish Match as disclosed in Form 10-K for the year ended December 31, 2022, Item 8, Note 3. Acquisitions The unaudited quarterly pro forma 2022 Swedish Match net revenues are prepared on the same basis as the pro forma Swedish Match financial information for the year ended December 31, 2022 as disclosed in Form 10-K for the year ended December 31, 2022, Item 8, Note 3. Acquisitions, utilizing the full year average exchange rates. The currency variance includes adjustments to the 2022 quarterly average exchange rates The unaudited pro forma financial information is not necessarily indicative of what the consolidated results of operations would have been had the acquisition been completed on January 1, 2021. In addition, the unaudited pro forma financial information is not a projection of future results of operations of the combined company, nor does it reflect the expected realization of any synergies or cost savings associated with the acquisition

24

XML

Document and Entity Information	Jul. 20, 2023
Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Jul. 20, 2023
Entity Registrant Name	Philip Morris International Inc.
Entity Central Index Key	0001413329
Amendment Flag	false
Entity Incorporation, State or Country Code	VA
Entity File Number	1-33708
Entity Tax Identification Number	13-3435103
Entity Address, Address Line One	677 Washington Blvd, Ste. 1100
Entity Address, City or Town	Stamford
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06901
City Area Code	203
Local Phone Number	905-2410
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Stock [Member]
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	PM
Security Exchange Name	NYSE
3.600% Notes due 2023 [Member]
Entity Information [Line Items]
Title of 12(b) Security	3.600% Notes due 2023
Trading Symbol	PM23A
Security Exchange Name	NYSE
2.875% Notes due 2024 - 1 [Member]
Entity Information [Line Items]
Title of 12(b) Security	2.875% Notes due 2024
Trading Symbol	PM24
Security Exchange Name	NYSE
2.875% Notes due 2024 - 2 [Member]
Entity Information [Line Items]
Title of 12(b) Security	2.875% Notes due 2024
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Security Exchange Name	NYSE
0.625% Notes due 2024 [Member]
Entity Information [Line Items]
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Security Exchange Name	NYSE
3.250% Notes due 2024 [Member]
Entity Information [Line Items]
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Security Exchange Name	NYSE
2.750% Notes due 2025 [Member]
Entity Information [Line Items]
Title of 12(b) Security	2.750% Notes due 2025
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3.375% Notes due 2025 [Member]
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Security Exchange Name	NYSE
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Security Exchange Name	NYSE
4.375% Notes due 2041 [Member]
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Security Exchange Name	NYSE
4.500% Notes due 2042 [Member]
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3.875% Notes due 2042 [Member]
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4.125% Notes due 2043 [Member]
Entity Information [Line Items]
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4.875% Notes due 2043 [Member]
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Security Exchange Name	NYSE
4.250% Notes due 2044 [Member]
Entity Information [Line Items]
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Security Exchange Name	NYSE