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In the vaping category, VEEV is an increasingly trusted choice among IQOS legal-age poly-users, and an important part of our smoke-free multi-category strategy, which we continue to deploy across our markets. VEEV is a top 3 pod brand in 13 European markets (holding the #1 position in 5 markets, including Italy, Romania and Czech Republic).

• Oral SFP²: Full-year shipment volume increased by nearly 28% in cans (nearly 25% in pouches or pouch equivalents). Fourth quarter shipment volume increased by 25% in cans (22% in pouches or pouch equivalents), fueled by ZYN nicotine pouch growth in the U.S., where shipments reached nearly 165 million cans, representing growth of nearly 42% versus prior year. Outside the U.S., our nicotine pouch quarterly shipment volume more than doubled, with notable contributions from Pakistan, South Africa, the UK and Mexico. The number of markets where our nicotine pouch products are available increased to 37, including recent launches in Italy, Romania and Thailand.

• Combustibles: Full-year net revenues grew by 4.0% (5.9% organically) predominantly driven by strong pricing. Fourth quarter net revenues grew by 6.0% (6.2% organically), driven by another quarter of high single-digit pricing and growing industry volumes in markets where smoke-free products are not allowed, including Turkey, India, Brazil and Vietnam. Strong pricing and productivity improvements resulted in gross profit growth of 10.7% (10.8% organically). Our global brands portfolio and Marlboro both achieved further market share gains.

• Dividend: Declared regular quarterly dividend of $1.35 per share, or an annualized $5.40 per share.

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¹ 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, Glossary and Explanatory Notes" section of this release, in Exhibit 99.2 to the company's Form 8-K dated February 6, 2025, and at www.pmi.com/2024Q4earnings.
² Oral smoke-free products volume excludes snuff, snuff leaf and U.S. chew

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³ In pouches or pouch equivalents

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⁴ In pouches or pouch equivalents

Reported diluted EPS is forecast to be in a range of $6.55 to $6.68, at prevailing exchange rates, versus reported diluted EPS of $4.52 in 2024. Excluding a total 2025 adjustment of $0.49 per share, this forecast represents a projected increase of 7.2% to 9.1% versus adjusted diluted EPS of $6.57 in 2024. Also excluding an adverse currency impact of $0.22, at prevailing exchange rates, this forecast represents a projected increase of 10.5% to 12.5% versus adjusted diluted EPS of $6.57 in 2024, as outlined in the above table.

2025 Full-Year Forecast Assumptions

This forecast assumes:

• An estimated total international industry volume decline of around 1% for cigarettes and HTUs, excluding China and the U.S.;

• Total cigarette and smoke-free product shipment volume growth for PMI of up to 2% driven by smoke-free products volume growth of 12% to 14%. This factors absolute growth in HTU adjusted IMS volumes at a similar level to 2024, translating into 10% to 12% growth, with the HTU shipment growth rate broadly in line subject to shipment timing and trade inventory movements, and an acceleration in U.S. nicotine pouch shipment volume to reach 780 to 820 million cans, representing growth of 34% to 41%;

• Net revenue growth of around 6% to 8% on an organic basis;

• Organic operating income growth of 10.5% to 12.5%;

• Full-year amortization of acquired intangibles of $0.49 per share, including the amortization of IQOS commercialization rights in the U.S. related to the agreement to end our commercial relationship with Altria Group, Inc. covering IQOS in the U.S.;

• An effective tax rate, excluding discrete tax events, of approximately 22.5% to 23.5%;

• Operating cash flow of around $11 billion at prevailing exchange rates, subject to year-end working capital requirements. This takes into account non-recurring payments relating to the German tax surcharge and the U.S. Tax Cuts and Jobs Act, which amount to approximately $1 billion;

• Capital expenditures of approximately $1.5 billion, including further investments in ZYN capacity in the U.S.;

• Further net debt to adjusted EBITDA ratio improvement as we continue to target a ratio of around 2x by the end of 2026;

• No dividend income from Rothmans, Benson & Hedges Inc. (our deconsolidated Canadian affiliate);

• No share repurchases in 2025; and

• First quarter adjusted diluted EPS of $1.58 to $1.63, including an estimated adverse currency impact of 4 cents at prevailing exchange rates.

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

In October 2024, PMI was informed by its deconsolidated Canadian affiliate, Rothmans, Benson & Hedges Inc. (RBH), that the court-appointed mediator and monitor in RBH’s Companies’ Creditors Arrangement Act (CCAA) proceeding filed a proposed plan of compromise and arrangement outlining certain terms of a comprehensive resolution of tobacco product-related claims and litigation in Canada against RBH and its affiliates. See PMI's Form 8-K dated October 18, 2024 for additional details.

On January 24, 2025, RBH filed an objection to approval of the proposed plan with the CCAA court. The positions taken by RBH in this objection, the positions taken by other parties in related filings, and other related developments narrowed the range of possible outcomes with respect to the allocation of the aggregate settlement amount of CAD 32.5 billion, which was determined to be an indicator that PMI’s investment in RBH may be impaired. Although there remains some uncertainty as to the final terms of the plan, PMI concluded that, the estimated fair value of its investment in RBH was lower than its carrying value and recorded a non-cash impairment charge of $2.3 billion in the consolidated statement of earnings for the year ended December 31, 2024 as a recognized subsequent event, with an adverse impact on reported diluted EPS of $1.49.

Additionally, PMI has determined that if the CCAA court approves the plan as proposed and it is subsequently implemented, RBH would likely remain deconsolidated under U.S. GAAP. Since the first quarter of 2019, and to date, PMI’s reported and adjusted EPS, net debt and other financial results have excluded RBH. However, subject to the terms and requirements of the proposed plan, the payment of certain dividends from RBH to PMI would be permitted going forward, which would be incremental to PMI’s cash flow and adjusted diluted EPS.

Following the sale of Vectura Group Ltd. on December 31, 2024, we will update our segment reporting by including the remaining units of Vectura Fertin Pharma in the Europe segment as of the first quarter of 2025. We plan to disclose select historical financial information for the 2022 to 2024 period reflecting this change in the coming weeks.

A conference call hosted by Jacek Olczak, Chief Executive Officer, and Emmanuel Babeau, Chief Financial Officer, will be webcast at 9:00 a.m., Eastern Time, on February 6, 2025. Access the webcast at www.pmi.com/2024Q4earnings.

TOTAL MARKET, CONSOLIDATED SHIPMENT VOLUME & MARKET SHARE

Total Market Volume

Full-Year
Estimated international industry volume (excluding China and the U.S.) for cigarettes and HTUs increased by 1.5% to 2.6 trillion units.

Consolidated Shipment Volume

Fourth-Quarter
PMI's total cigarette and HTU shipment volume increased by 1.9% (HTU shipments increased by 5.1%, and cigarette shipments increased by 1.1%), driven by increases in the SSEA, CIS & MEA Region and the EA, AU & PMI DF Region.

PMI’s total oral product shipment volume in cans increased by 25.0%, predominantly reflecting growth in nicotine pouches.

Full-Year
PMI's total cigarette and HTU shipment volume increased by 2.5% (HTU shipments increased by 11.6%, while cigarette shipments increased by 0.6%) with increases across all regions except the Americas.

PMI’s total oral product shipment volume in cans increased by 27.8%, primarily reflecting growth in nicotine pouches.

International Share of Market - Cigarettes and HTUs

CONSOLIDATED FINANCIAL SUMMARY

Fourth-Quarter

Net revenues increased by 7.3% on an organic basis, mainly reflecting: a favorable pricing variance, primarily due to higher combustible tobacco pricing; and favorable volume/mix, mainly driven by higher smoke-free products volume, notwithstanding unfavorable cigarette mix.

Adjusted operating income increased by 11.8% on an organic basis, mainly reflecting: the same factors as for net revenues; partly offset by higher marketing, administration and research costs, notwithstanding lower manufacturing costs due to improved productivity.

Full-Year

Adjusted net revenues increased by 9.8% on an organic basis, mainly reflecting: a favorable pricing variance, primarily driven by higher combustible tobacco pricing; and favorable volume/mix, driven by higher smoke-free products volume, partly offset by unfavorable cigarette mix.

Adjusted operating income increased by 14.9% on an organic basis, mainly reflecting: the same factors as for net revenues; partly offset by higher marketing, administration and research costs (primarily due to inflationary impacts, notably related to wages, and higher commercial investments), as well as higher manufacturing costs, notably related to tobacco leaf and the impact of the EU single-use plastics directive, partly offset by productivity.

EUROPE REGION

Total Market, PMI Shipment & Market Share Commentaries

Fourth-Quarter
The estimated total market for cigarettes and HTUs in the Region was broadly stable (130.8 billion units), with a 1.3% decrease for cigarettes and continued HTU growth. Notable decreases in the estimated total market in France (down by 11.7%), and the United Kingdom (down by 17.6%) were offset by Ukraine (up by 8.7%), Poland (up by 3.8%), and Spain (up by 4.1%).

Full-Year
The estimated total market for cigarettes and HTUs in the Region was broadly stable (541.9 billion units), reflecting a 1.4% decrease for cigarettes and continued HTU growth. Similar to the quarter, notable decreases in the estimated total market in France (down by 12.5%), and the United Kingdom (down by 12.6%) were largely offset by Ukraine (up by 4.3%), Bulgaria (up by 7.3%), and Poland (up by 2.3%).

Fourth-Quarter
PMI's total cigarette and HTU shipment volume in the Region was broadly flat (53.6 billion units). Total cigarette and HTU shipment volume decreased notably in Italy (down by 4.6%) and France (down by 13.5%), and increased notably in Poland (up by 10.4%) as well as Ukraine (up by 11.6%).

PMI's estimated HTU adjusted in-market sales volume in the Region increased by close to 10% in the quarter, reflecting continued growth momentum for IQOS. HTU shipments increased by 6.2%.

PMI's HTU share of the total cigarette and HTU market in the Region increased by 0.9pp on an adjusted basis.

Oral SFP shipments increased by 1.7%, driven by nicotine pouches (up by 58.0%).

Full-Year
PMI's total cigarette and HTU shipment volume in the Region increased by 0.7% to 216.3 billion units. Total cigarette and HTU shipment volume increased notably in Poland (up by 7.9%) and Ukraine (up by 9.4%), and decreased notably in France (down by 17.3%) as well as the Netherlands (down by 20.9%).

PMI's estimated HTU adjusted in-market sales volume in the Region increased by 9.4%, reflecting continued growth momentum for IQOS, partly offset by the impact from the EU characterizing flavor ban. HTU shipments increased by 8.9%.

PMI's HTU share of the total cigarette and HTU market in the Region increased by 0.9 pp on an adjusted basis.

Oral SFP shipments increased by 4.9%, driven by growth of nicotine pouches (up by 40.2%).

Financial Summary

Fourth-Quarter

Net revenues increased by 5.5% on an organic basis, reflecting a favorable pricing variance, mainly driven by higher combustible tobacco pricing.

Adjusted operating income increased by 9.1% on an organic basis, primarily reflecting the same factor as for net revenues.

Full-Year

Net revenues increased by 7.1% on an organic basis, reflecting a favorable pricing variance, mainly driven by higher combustible tobacco pricing; and favorable volume/mix, primarily driven by higher HTU volume, partly offset by lower cigarette volume and adverse cigarette mix.

Adjusted operating income increased by 9.3% on an organic basis, primarily reflecting: the same factors as for net revenues; partly offset by higher marketing, administration and research costs.

SSEA, CIS & MEA REGION

Total Market, PMI Shipment & Market Share Commentaries

Fourth-Quarter
The estimated total market for cigarettes and HTUs in the Region increased by 3.3% to 402.0 billion units. The increase in the estimated total market was mainly due to Vietnam (up by 14.4%), Egypt (up by 16.1%), and Turkey (up by 6.6%), partly offset by Bangladesh (down by 7.8%).

Full-Year
The estimated total market for cigarettes and HTUs in the Region increased by 2.8% to 1,571.9 billion units. The increase in the estimated total market was mainly due to Turkey (up by 9.5%), and Egypt (up by 11.3%), partly offset by Bangladesh (down by 5.0%), and Thailand (down by 13.7%).

Our Regional market share increased by 0.4 points to 23.8%.

Fourth-Quarter
PMI's total cigarette and HTU shipment volume in the Region increased by 4.1% to 94.2 billion units, with notable increases in Turkey (up by 9.3%) and India (up 51.2%), partly offset by Egypt (down by 12.8%) and the Philippines (down by 8.7%) . PMI's estimated HTU adjusted in-market sales volume increased by around 16%, with approximately 12% HTU shipment volume growth.

Full-Year
PMI's total cigarette and HTU shipment volume in the Region increased by 4.2% to 373.4 billion units, mainly driven by Turkey (up by 13.4%), partly offset by Indonesia (down by 3.7%). PMI's estimated HTU adjusted in-market sales volume increased by approximately 15.6%, with about 15% HTU shipment volume growth.

Financial Summary

Fourth-Quarter

Net revenues increased by 6.6% on an organic basis, primarily reflecting: a favorable pricing variance, predominantly driven by higher combustible tobacco pricing; and favorable volume/mix, driven by higher cigarette and HTU volume, partly offset by unfavorable mix.

Adjusted operating income increased by 12.1% on an organic basis, primarily reflecting: the same factors as for net revenues; partly offset by higher marketing, administration and research costs.

Full-Year

Adjusted net revenues increased by 10.9% on an organic basis, primarily reflecting: a favorable pricing variance, predominantly driven by higher combustible tobacco pricing; and favorable volume/mix, driven by higher cigarette and HTU volume coupled with favorable mix.

Adjusted operating income increased by 22.0% on an organic basis, primarily reflecting: a favorable pricing variance, predominantly driven by higher combustible tobacco pricing; and favorable volume/mix, driven by higher cigarette and HTU volume; partly offset by higher manufacturing costs (primarily due to higher cost of tobacco leaf) as well as higher marketing, administration and research costs.

EA, AU AND PMI DF REGION

Total Market, PMI Shipment & Market Share Commentaries

Fourth-Quarter
The estimated total market for cigarettes and HTUs in the Region, excluding China, increased by 0.8% to 81.1 billion units, with a decrease in cigarettes, offset by HTU growth. The increase in the estimated total market was mainly driven by International Duty Free (up by 14.4%) and Japan (up by 2.6%), partly offset by Taiwan (down by 7.4%) and Australia (down by 26.5%).

Full-Year
The estimated total market for cigarettes and HTUs in the Region, excluding China, was broadly stable (318.9 billion units), with a decrease in cigarettes, largely offset by HTU growth. The decrease in the estimated total market in Australia (down by 28.5%) and Korea (down by 2.2%) was offset by International Duty Free (up by 11.3%) and Japan (up by 1.4%).

Our Regional market share increased by 1.3 points to 31.3%.

Fourth-Quarter
PMI's total cigarette and HTU shipment volume in the Region increased by 0.5% to 23.4 billion units with growth in International Duty Free (up by 21.5%), partly offset by Japan (down by 1.9%).

PMI's estimated HTU adjusted in-market sales volume in the Region increased by around 14% and ahead of shipments, which were higher in the first half of the year.

Full-Year
PMI's total cigarette and HTU shipment volume in the Region increased by 3.3% to 104.6 billion units, driven by Japan (up by 6.4%), partly offset by Australia (down by 28.5%).

PMI's estimated HTU adjusted in-market sales volume in the Region increased by 14.5%. HTU shipments increased by 12.6%.

Financial Summary

Fourth-Quarter

Net revenues increased by 2.2% on an organic basis, primarily reflecting a favorable pricing variance.

Adjusted operating income increased by 6.9% on an organic basis, reflecting the same factor as for net revenues.

Full-Year

Net revenues increased by 8.6% on an organic basis, reflecting: a favorable pricing variance and favorable volume/mix, mainly driven by higher HTU volume, partly offset by lower cigarette volume.

Adjusted operating income increased by 14.0% on an organic basis, a favorable pricing variance and favorable volume/mix, mainly driven by higher HTU volume, partly offset by lower cigarette volume, while lower manufacturing costs were largely offset by higher marketing, administration and research costs.

AMERICAS REGION

Total Market, PMI Shipment & Market Share Commentaries

Fourth-Quarter
The estimated total market for cigarettes and HTUs in the Region, excluding the U.S., decreased by 1.4% to 49.1 billion units, primarily reflecting a decline in the cigarette market. The decrease in the estimated total market was mainly due to Colombia (down by 12.3%), and Canada (down by 7.7%), partly offset by Brazil (up by 2.1%), and Argentina (up by 1.2%).

Full-Year
The estimated total market for cigarettes and HTUs in the Region, excluding the U.S., decreased by 1.9% to 185.1 billion units, primarily reflecting a decline for cigarettes. The decrease in the estimated total market was mainly due to Argentina (down by 8.4%) and Canada (down by 12.3%), partly offset by Brazil (up by 6.8%).

Our Regional market share, excluding the U.S., was flat at 33.7%.

Fourth-Quarter
PMI's total cigarette and HTU shipment volume in the Region decreased by 2.0% to 17.3 billion units, mainly due to Canada (down by 20.2%) and Mexico (down by 2.4%), partly offset by Argentina (up by 2.5%).

Oral products shipments increased by 33.4%, predominantly driven by ZYN nicotine pouches in the U.S.

Cigar shipment volume increased by 2.4%, while gross profit grew high-single digits.

Full-Year
PMI's total cigarette and HTU shipment volume in the Region decreased by 2.6% to 62.3 billion units, mainly due to Argentina (down by 8.1%), partly offset by Brazil (up by 8.5%).

Oral products shipments increased by 37.6%, predominantly driven by ZYN nicotine pouches in the U.S.

Cigar shipment volume decreased by 11%, while gross profit grew mid-single digits.

Financial Summary

Fourth-Quarter

Net revenues increased by 21.0% on an organic basis, primarily reflecting: favorable volume/mix, predominantly driven by nicotine pouches in the U.S., as well as a favorable pricing variance, partly offset by lower cigarette volume and unfavorable cigarette mix outside of the U.S.

Adjusted operating income increased by 62.8% on an organic basis, mainly reflecting: favorable volume/mix and price variance, mainly due to the same factors as for net revenues; partly offset by higher marketing, administration and research costs, including incremental investment in the U.S.

Full-Year

Net revenues increased by 19.3% on an organic basis, primarily reflecting: favorable volume/mix, mainly due to growth of ZYN nicotine pouches in the U.S., partly offset by cigarette volume declines outside of the U.S.; and favorable cigarette and ZYN pricing.

Adjusted operating income increased by 28.7% on an organic basis, mainly reflecting: favorable volume/mix and favorable price variance, mainly due to the same factors as for net revenues, partly offset by higher marketing, administration and research costs, including incremental investment in the U.S.

WELLNESS AND HEALTHCARE

Fourth-Quarter

Net revenues increased by 23.2% on an organic basis. The adjusted operating loss of $48 million was primarily due to R&D costs.

Full-Year

Net revenues increased by 7.8% on an organic basis. The adjusted operating loss of $120 million was primarily due to R&D and administration costs.

Philip Morris International: Delivering a Smoke-Free Future

Philip Morris International is a leading international tobacco company, actively delivering 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 over $14 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 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. Following a robust science-based review, the U.S. Food and Drug Administration has authorized the marketing of Swedish Match’s General snus and ZYN nicotine pouches and versions of PMI’s IQOS devices and consumables - the first-ever such authorizations in their respective categories. Versions of IQOS devices and consumables and General snus also obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA. As of December 31, 2024, PMI's smoke-free products were available for sale in 95 markets, and PMI estimates that 38.6 million adults around the world use PMI's smoke-free products. The smoke-free business accounted for approximately 39% of PMI’s total full-year 2024 net revenues. With a strong foundation and significant expertise in life sciences, PMI has a long-term ambition to expand into wellness and healthcare areas and aims to enhance life through the delivery of seamless health experiences. References to "PMI", "we", "our" and "us" mean Philip Morris International Inc., and its subsidiaries. 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; business plans and strategies; plans and strategies related to the CCAA proceedings; the likelihood and impact to PMI of the proposed CCAA plan; and the likelihood and impact of RBH remaining deconsolidated. 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 and/or nicotine 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 natural disasters and pandemics 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; 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 introduce, commercialize, and grow smoke-free 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 smoke-free products 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, 2023, Quarterly Report on Form 10-Q for the third quarter ended September 30, 2024, and the Form 10-K for the fourth quarter and year ended December 31, 2024, which will be filed later today. 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, Glossary and Explanatory Notes

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 February 6, 2025, and at www.pmi.com/2024Q4earnings. 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.

Management reviews net revenues, gross profit, 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, restructuring 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. While amortization expense on acquisition related intangible assets is excluded in these adjusted measures, the net revenues generated from these acquired intangible assets are included in the company's adjusted measures, unless otherwise stated. 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.

 

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Contacts

Philip Morris International
Investor Relations:
Stamford, CT: +1 (203) 905 2413
Lausanne, Switzerland: +41 582 424 666
Email: InvestorRelations@pmi.com

Media:
Lausanne: +41 582 424 500
Email: David.Fraser@pmi.com