Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [Shares, Units]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

ffe51e31dbaf6285a2b72d4c2ec242563cf675f883804782260c4601813e217a

| Metric [Unit: $ Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Combustible Tobacco      | N/A     | **5,223**  **[0001413329-23-000117_pm-20230331.htm:23]**  | **5,790**  **[0001413329-23-000176_pm-20230630.htm:28]**  | **5,832**  **[0001413329-23-000201_pm-20230930.htm:29]**  | N/A     | **5,407**  **[0001413329-24-000087_pm-20240331.htm:16]**  | **5,858**  **[0001413329-24-000145_pm-20240630.htm:21]**  | **6,134**  **[0001413329-24-000172_pm-20240930.htm:81]**  |
| Smoke-Free Products (excluding Wellness and Healthcare) | N/A     | **2,710**  **[0001413329-23-000117_pm-20230331.htm:23]**  | **3,101**  **[0001413329-23-000176_pm-20230630.htm:28]**  | **3,234**  **[0001413329-23-000201_pm-20230930.htm:29]**  | N/A     | **3,296**  **[0001413329-24-000087_pm-20240331.htm:16]**  | **3,530**  **[0001413329-24-000145_pm-20240630.htm:21]**  | **3,701**  **[0001413329-24-000172_pm-20240930.htm:81]**  |
| Wellness and Healthcare  | N/A     | **86**  **[0001413329-23-000117_pm-20230331.htm:23]**     | **76**  **[0001413329-23-000176_pm-20230630.htm:28]**     | **75**  **[0001413329-23-000201_pm-20230930.htm:29]**     | N/A     | **90**  **[0001413329-24-000087_pm-20240331.htm:16]**     | **80**  **[0001413329-24-000145_pm-20240630.htm:21]**     | **76**  **[0001413329-24-000172_pm-20240930.htm:81]**     |
| Total Smoke-Free Products| N/A     | **2,796**  **[0001413329-23-000117_pm-20230331.htm:23]**  | **3,177**  **[0001413329-23-000176_pm-20230630.htm:28]**  | **3,309**  **[0001413329-23-000201_pm-20230930.htm:29]**  | **3,600**  **[0001413329-24-000012_earningsreleasepm-ex991xfy.htm:0]**  | **3,386**  **[0001413329-24-000087_pm-20240331.htm:16]**  | **3,610**  **[0001413329-24-000145_pm-20240630.htm:21]**  | **3,777**  **[0001413329-24-000172_pm-20240930.htm:81]**  |
| Total PMI Net Revenues   | N/A     | **8,019**  **[0001413329-23-000117_pm-20230331.htm:23]**  | **8,967**  **[0001413329-23-000176_pm-20230630.htm:28]**  | **9,141**  **[0001413329-23-000201_pm-20230930.htm:29]**  | **9,000**  **[0001413329-24-000012_earningsreleasepm-ex991xfy.htm:0]**  | **8,793**  **[0001413329-24-000087_pm-20240331.htm:16]**  | **9,468**  **[0001413329-24-000145_pm-20240630.htm:21]**  | **9,911**  **[0001413329-24-000172_pm-20240930.htm:81]**  |

1e3d3ad2b959b1f0d7ea1875a6d03612a65d261d92082624b8b3e147453f3974

| Geographical Segment | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2023 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2022 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Europe Region ($M)   | **3,365**  **[0001413329-24-000087_pm-20240331.htm:16]**  | **3,815**  **[0001413329-24-000145_pm-20240630.htm:21]**  | **4,121**  **[0001413329-24-000172_pm-20240930.htm:20]**  | N/A     | **2,910**  **[0001413329-23-000117_pm-20230331.htm:23]**  | **3,402**  **[0001413329-23-000176_pm-20230630.htm:27]**  | **3,672**  **[0001413329-23-000201_pm-20230930.htm:28]**  | N/A     |
| SSEA, CIS & MEA ($M) | **2,658**  **[0001413329-24-000087_pm-20240331.htm:16]**  | **2,771**  **[0001413329-24-000145_pm-20240630.htm:21]**  | **2,964**  **[0001413329-24-000172_pm-20240930.htm:20]**  | N/A     | **2,477**  **[0001413329-23-000117_pm-20230331.htm:23]**  | **2,668**  **[0001413329-23-000176_pm-20230630.htm:27]**  | **2,777**  **[0001413329-23-000201_pm-20230930.htm:28]**  | N/A     |
| EA, AU & PMI DF ($M) | **1,684**  **[0001413329-24-000087_pm-20240331.htm:16]**  | **1,673**  **[0001413329-24-000145_pm-20240630.htm:21]**  | **1,602**  **[0001413329-24-000172_pm-20240930.htm:20]**  | N/A     | **1,520**  **[0001413329-23-000117_pm-20230331.htm:23]**  | **1,680**  **[0001413329-23-000176_pm-20230630.htm:27]**  | **1,571**  **[0001413329-23-000201_pm-20230930.htm:28]**  | N/A     |
| Americas Region ($M) | **996**  **[0001413329-24-000087_pm-20240331.htm:16]**    | **1,129**  **[0001413329-24-000145_pm-20240630.htm:21]**  | **1,148**  **[0001413329-24-000172_pm-20240930.htm:20]**  | N/A     | **445**  **[0001413329-23-000117_pm-20230331.htm:23]**    | **476**  **[0001413329-23-000176_pm-20230630.htm:27]**    | **478**  **[0001413329-23-000201_pm-20230930.htm:28]**    | N/A     |

f68156d8fceecc5c3f1a9ea522320257faac2e3cb4e55a0173c58c08a77fcc05

Philip Morris International Inc. (PMI) is a leading international tobacco company committed to creating a smoke-free future by expanding its portfolio beyond traditional tobacco and nicotine products. The company primarily sells cigarettes and smoke-free products, which include heat-not-burn, e-vapor, and oral nicotine products, as well as wellness and healthcare products through its Vectura Fertin Pharma business **[0001413329-24-000172_pm-20240930.htm:71]** **[0001413329-24-000013_pm-20231231.htm:48]** **[0001413329-24-000013_pm-20231231.htm:4]**. PMI has invested significantly in developing innovative smoke-free products, with brands like IQOS and ZYN leading their smoke-free portfolio **[0001413329-24-000172_pm-20240930.htm:71]** **[0001413329-24-000013_pm-20231231.htm:4]** **[0001413329-24-000013_pm-20231231.htm:147]**. The company's operations are organized into several geographical segments, focusing on different regions worldwide **[0001413329-24-000172_pm-20240930.htm:71]** **[0001413329-24-000013_pm-20231231.htm:48]** **[0001413329-24-000013_pm-20231231.htm:7]**.

1. **Smoke-Free Products** - Includes heat-not-burn, e-vapor, and oral nicotine products, with leading brands such as IQOS and ZYN driving the company's transition to a smoke-free future.
   - **IQOS** - A heat-not-burn product designed to provide a smoke-free alternative to traditional cigarettes.
   - **ZYN** - An oral nicotine product offering a smoke-free experience.
2. **Wellness and Healthcare** - Focuses on inhaled therapeutics and oral delivery systems through the Vectura Fertin Pharma business, expanding PMI's reach beyond traditional tobacco products.
3. **Combustible Tobacco Products** - Comprises traditional cigarettes and other tobacco products, continuing to contribute to the company's revenue.
4. **Geographical Segments** - Organized into Europe, South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa (SSEA, CIS & MEA), East Asia, Australia, and PMI Duty Free (EA, AU & PMI DF), and the Americas, allowing PMI to cater to diverse markets worldwide.

bcf008a5364be2a85e48becd47d7f7c19de779bf78b7f6b84811fde186f0fa94

| Metric | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------|---------|---------|---------|---------|---------|---------|---------|---------|
| **PMI Shipments (billion units)** | 186.047 **[0001413329-24-000172_pm-20240930.htm:88]** | 171.1 **[0001413329-23-000114_earningsreleasepm-ex991xq1.htm:7]** | 188.4 **[0001413329-23-000176_pm-20230630.htm:87]** | 193.6 **[0001413329-23-000201_pm-20230930.htm:91]** | 185.1 **[0001413329-24-000012_earningsreleasepm-ex991xfy.htm:5]** | 176.3 **[0001413329-24-000083_earningsreleasepm-ex991xq1.htm:3]** **[0001413329-24-000087_pm-20240331.htm:60]** | 193.2 **[0001413329-24-000145_pm-20240630.htm:78]** | 198.6 **[0001413329-24-000172_pm-20240930.htm:88]** |
| **PMI Market Share (%)** | 28.0 **[0001413329-23-000020_earningsreleasepm-ex991xfy.htm:35]** | 27.4 **[0001413329-23-000114_earningsreleasepm-ex991xq1.htm:8]** | 28.5 **[0001413329-23-000173_earningsreleasepm-ex991xq2.htm:8]** **[0001413329-23-000176_pm-20230630.htm:93]** | 28.9 **[0001413329-23-000196_earningsreleasepm-ex991xq3.htm:7]** | 28.6 **[0001413329-24-000012_earningsreleasepm-ex991xfy.htm:6]** | 28.0 **[0001413329-24-000083_earningsreleasepm-ex991xq1.htm:3]** **[0001413329-24-000087_pm-20240331.htm:65]** | 28.7 **[0001413329-24-000140_earningsreleasepm-ex991xq2.htm:18]** | 29.5 **[0001413329-24-000167_earningsreleasepm-ex991xq3.htm:5]** **[0001413329-24-000172_pm-20240930.htm:93]** |
| **Total Market (billion units)** | 661.7 **[0001413329-23-000020_earningsreleasepm-ex991xfy.htm:35]** | 612.3 **[0001413329-23-000117_pm-20230331.htm:73]** | 649.9 **[0001413329-23-000176_pm-20230630.htm:87]** | 668.3 **[0001413329-23-000201_pm-20230930.htm:91]** | 49.9 **[0001413329-24-000012_earningsreleasepm-ex991xfy.htm:14]** | 616.1 **[0001413329-24-000087_pm-20240331.htm:62]** | 657.2 **[0001413329-24-000145_pm-20240630.htm:78]** | 676.7 **[0001413329-24-000172_pm-20240930.htm:88]** |
| **Nicotine Pouch Shipment Volume (million cans)** | N/A | 73.2 **[0001413329-23-000114_earningsreleasepm-ex991xq1.htm:12]** | 89.9 **[0001413329-23-000173_earningsreleasepm-ex991xq2.htm:17]** | 105.4 **[0001413329-23-000201_pm-20230930.htm:134]** | 116.3 **[0001413329-24-000012_earningsreleasepm-ex991xfy.htm:15]** | 145.7 **[0001413329-24-000083_earningsreleasepm-ex991xq1.htm:3]** | 135.1 **[0001413329-24-000140_earningsreleasepm-ex991xq2.htm:12]** | 149.6 **[0001413329-24-000167_earningsreleasepm-ex991xq3.htm:12]** |
| **Estimated Total Market for Cigarettes and HTUs (billion units)** | 115.4 **[0001413329-23-000020_earningsreleasepm-ex991xfy.htm:15]** | 125.4 **[0001413329-23-000117_pm-20230331.htm:104]** **[0001413329-23-000114_earningsreleasepm-ex991xq1.htm:9]** | 140.7 **[0001413329-23-000176_pm-20230630.htm:123]** | 146.3 **[0001413329-23-000201_pm-20230930.htm:127]** | 130.8 **[0001413329-24-000012_earningsreleasepm-ex991xfy.htm:9]** | 124.5 **[0001413329-24-000083_earningsreleasepm-ex991xq1.htm:6]** | 138.0 **[0001413329-24-000145_pm-20240630.htm:116]** | 148.6 **[0001413329-24-000172_pm-20240930.htm:126]** |
| **HTU Adjusted In-Market Sales Volume (% Increase)** | N/A | 16 **[0001413329-23-000117_pm-20230331.htm:76]** | 19.7 **[0001413329-23-000176_pm-20230630.htm:123]** | 14.4 **[0001413329-23-000201_pm-20230930.htm:127]** | 13.9 **[0001413329-24-000012_earningsreleasepm-ex991xfy.htm:0]** | 12.5 **[0001413329-24-000087_pm-20240331.htm:65]** **[0001413329-24-000083_earningsreleasepm-ex991xq1.htm:3]** **[0001413329-24-000083_earningsreleasepm-ex991xq1.htm:0]** | 10.2 **[0001413329-24-000145_pm-20240630.htm:84]** **[PM_3393936_3]** | 14.8 **[0001413329-24-000167_earningsreleasepm-ex991xq3.htm:1]** **[0001413329-24-000167_earningsreleasepm-ex991xq3.htm:4]** |

c1ae338b991d31e1f7d56098d76c72be6fa551cc73f52aa961ab63ee2922ff68

3f1cf31772de716c022fb324a620c0a40dee7c5d88d292a067ee2a07ded3409b

1. One of your peers highlighted that in Europe, vapor is seeing greater success in fully converting smokers than heated tobacco; what are your latest thoughts on this topic, and are you seeing an acceleration in vapor adoption as you roll out **VEEV** in several markets?  **[PM_3403178_14]** 

2. Regarding the illicit **nicotine pouches** entering the U.S. market that may infringe on your patents, could you expand on what measures you are currently taking or expect to take, and how do you think this will differ from the current environment we see in vapor in the U.S.?  **[PM_3403178_14]** 

3. Considering your increased **pricing guidance** of 8% to 9% and yet positive **volumes** in combustible cigarettes, shouldn't FY '25 also be a strong year for cigarette volumes and pricing internationally, and can you touch on any disruptive **excise tax hikes** expected in the next few months?  **[PM_3403178_12]** 

4. It looks like you modestly took down the top end of your potential **deleveraging** for this year; could you address what drove that, and with sizable **maturities** over 2025, are you considering pulling some of that refinancing forward into the remainder of this year, given where markets are opportunistically?  **[PM_3403178_15]** 

5. With the ongoing **supply constraints** for **ZYN** in the U.S., what measures are you taking to match consumer demand, and how confident are you in your **capacity expansion plans** to meet future growth?  **[PM_3403178_5]** 

f2269d7ebb76e809a7b4c210a689371a54c94e05fbb3c7a9972c2b50499f1365

- **British American Tobacco plc** - Competitor in the tobacco industry  **[0001413329-24-000013_pm-20231231.htm:31]** **[0001413329-24-000013_pm-20231231.htm:9]** .
- **Japan Tobacco Inc.** - Competitor in the tobacco industry  **[0001413329-24-000013_pm-20231231.htm:31]** **[0001413329-24-000013_pm-20231231.htm:9]** .
- **Imperial Brands plc** - Competitor in the tobacco industry  **[0001413329-24-000013_pm-20231231.htm:31]** **[0001413329-24-000013_pm-20231231.htm:9]** .
- **New market entrants** - Particularly with respect to innovative products  **[0001413329-24-000013_pm-20231231.htm:31]** **[0001413329-24-000013_pm-20231231.htm:9]** .
- **Several regional and local tobacco companies** - Competitors in various regions  **[0001413329-24-000013_pm-20231231.htm:31]** **[0001413329-24-000013_pm-20231231.htm:9]** .
- **State-owned tobacco enterprises** - Principally in Algeria, Egypt, China, Taiwan, Thailand, and Vietnam  **[0001413329-24-000013_pm-20231231.htm:31]** **[0001413329-24-000013_pm-20231231.htm:9]** .

b93c6e40c56be23deacfc35facfb9163673049f2233f1d171b769c77bec1df04

85888d6db600061747783fd89cbc052b56b91af763278a0c328ed35812704d2c

04c302d0d97de6932d5d33d42b67b1a89085588b6e70976be0c95c92e4311c6e

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Volume Growth**: +2% to +3% total shipment progression; adjusted IMS HTU volume growth of around +13%; shipment volumes of around 140 billion units  **[PM_3403178_8]** .
  2. **U.S. ZYN Shipment Volume**: 570 million to 580 million cans  **[PM_3403178_8]** .
  3. **Organic Net Revenue Growth**: +9.5%  **[PM_3403178_8]** .
  4. **Adjusted Organic Operating Income (OI) Growth**: +14% to +14.5%  **[PM_3403178_8]** .
  5. **Currency-Neutral Adjusted Diluted EPS Growth**: +14% to +15%, translating into $6.45 to $6.51  **[PM_3403178_8]** .
  6. **U.S. Dollar Basis Growth**: +7% to +8%  **[PM_3403178_8]** .
  7. **Operating Cash Flow**: $11 billion  **[PM_3403178_8]** .
  8. **Net Debt to Adjusted EBITDA Ratio**: 0.3 to 0.4x improvement, aiming for around 2x by the end of 2026  **[PM_3403178_8]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Organic Net Revenue Growth**: +7.5% to +9%  **[PM_3393936_8]** .
  2. **Organic Operating Income Growth**: +11% to +13%  **[PM_3393936_8]** .
  3. **Currency-Neutral Adjusted Diluted EPS Growth**: +11% to +13%, translating into $6.33 to $6.45  **[PM_3393936_8]** .
  4. **USD EPS Growth**: +5% to +7%  **[PM_3393936_8]** .
  5. **Operating Cash Flow**: Around $11 billion  **[PM_3393936_8]** .
  6. **Capital Expenditure**: $1.3 billion to $1.4 billion  **[PM_3393936_8]** .
  7. **Net Debt to Adjusted EBITDA Ratio**: 0.3x to 0.5x improvement, aiming for around 2x by the end of 2026  **[PM_3393936_8]** .
  8. **HTU Shipment Volume**: Around 140 billion units  **[PM_3393936_12]** .
  9. **U.S. ZYN Shipment Range**: 560 million to 580 million cans  **[PM_3393936_6]** .
  10. **Combustible Price Variance**: +7% to +8%  **[PM_3393936_7]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Currency-Neutral Growth Forecast**: Robust growth in dollar terms despite currency headwinds  **[PM_3380257_6]** .
  2. **U.S. Shipment Forecast**: 516 million cans  **[PM_3380257_6]** .
  3. **Smoke-Free Net Revenue**: Close to $15 billion  **[PM_3380257_6]** .
  4. **Organic Net Revenue Growth**: 7% to 8.5%  **[PM_3380257_6]** .
  5. **Organic Operating Income Growth**: 10% to 12%  **[PM_3380257_6]** .
  6. **Currency-Neutral Adjusted Diluted EPS Growth**: 9% to 11%, translating into $6.19 to $6.31  **[PM_3380257_6]** .
  7. **HTU Shipment Volume for Q2**: 34 million to 35 billion  **[PM_3380257_6]** .
  8. **Currency-Neutral Adjusted Diluted EPS for Q2**: $1.50 to $1.55  **[PM_3380257_6]** .
  9. **Net Debt to Adjusted EBITDA Ratio**: 0.3 to 0.5x improvement, aiming for around 2x by the end of 2026  **[PM_3380257_6]** .
  10. **Organic OI Margin Expansion**: 370 basis point expansion in Q1  **[PM_3380257_3]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Gross Margin and Operating Margin**: Expectation for expansion  **[PM_3372454_12]** .
  2. **Adjusted Diluted EPS**: +9%, translating into $6.32 to $6.44  **[PM_3372454_8]** .
  3. **Operating Cash Flow**: $10 billion to $11 billion  **[PM_3372454_8]** .
  4. **Capital Expenditure**: Around $1.2 billion  **[PM_3372454_8]** .
  5. **Net Debt to Adjusted EBITDA Ratio**: 0.3 to 0.5x improvement, aiming for around 2x by the end of the year  **[PM_3372454_8]** .
  6. **Smoke-Free Products**: Acceleration in growth for net revenues and gross profit  **[PM_3372454_1]** .
  7. **HTU Shipment Volume**: More than 140 billion units  **[PM_3372454_7]** .
  8. **Organic Net Revenue Growth**: +6.5% to +8%  **[PM_3372454_7]** .
  9. **Organic Operating Income Growth**: +8% to +9.5%  **[PM_3372454_7]** .
  10. **Smoke-Free Gross Profit Growth**: Acceleration from +19% in 2023  **[PM_3372454_7]** .
  11. **Adjusted IMS Volume Growth**: +14% to +16%  **[PM_3372454_7]** .
  12. **U.S. Volume Growth**: Around 520 million tonnes  **[PM_3372454_7]** .
  13. **Pricing**: Mid-single-digit increase for combustibles  **[PM_3372454_18]** .

e7db113884855ad2917a529a12bd3156160370bbcd83bc75aa7dd6a7dc7dda62

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

07a33a02fb09eb57821bbc4beb056f8a4bb77a5ff5498d6b45f4f6139114197e

European Union

Eastern Europe, Middle East & Africa

Asia

Latin America & Canada

Combustible Tobacco

Smoke-Free Products

- Smoke-Free excl. Wellness

- Wellness and Healthcare

Swedish Match

Total Revenue

365918c8f886c7da7f3adaabfacf0ee1a952fa3db69e24c7594163f94778cd3c

**PMI Shipments (billion units)**

**PMI Market Share (%)**

**Nicotine Pouch Shipment Volume (million cans)**

**HTU Adjusted In-Market Sales Volume (% Increase)**

dfb0da832ef2bc4a81b1b79f931ab6c3cf3039d751faeeecc7b34b107897ddf9

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Name               | Position                                                                 | Start Date | Short Bio                                                                                                                                                                                                                                                                                                                                 |
|--------------------|--------------------------------------------------------------------------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Jacek Olczak       | Chief Executive Officer                                                  | May 2021   | Jacek Olczak is the **Chief Executive Officer** of Philip Morris International Inc. (PMI). He previously served as the **Chief Operating Officer** from January 2018 until May 2021, and as the **Chief Financial Officer** from August 2012 until December 31, 2017. Mr. Olczak joined PMI's Polish affiliate in 1993  **[0001413329-24-000013_pm-20231231.htm:202]** **[0001104659-24-039955_tm242649-d2_def14a.htm:36]** **[0001104659-23-036062_tm231786d2_def14a.htm:30]** .                                          |
| Massimo Andolina   | President, Europe Region                                                 | January 2023 | Massimo Andolina is the **President, Europe Region** at PMI. He was previously the Senior Vice President, Operations from January 2018. He joined PMI in 2008 as Director, Operations Planning, and has held various roles within the company  **[0001413329-24-000013_pm-20231231.htm:202]** **[0001413329-23-000025_pm-20221231.htm:185]** .                                                                                     |
| Emmanuel Babeau    | Chief Financial Officer                                                  | May 2020   | Emmanuel Babeau was appointed as the **Chief Financial Officer** of PMI in May 2020. Before joining PMI, he served as the Deputy Chief Executive Officer of Schneider Electric, responsible for Finance and Legal Affairs  **[0001413329-24-000013_pm-20231231.htm:202]** **[0001413329-23-000025_pm-20221231.htm:185]** .                                                                                                          |
| Werner Barth       | President, Combustibles Category & Global Combustibles Marketing         | November 2021 | Werner Barth was appointed as the **President, Combustibles Category & Global Combustibles Marketing** at PMI in November 2021. He joined PMI in 1990 as a Marketing Trainee at Philip Morris Germany and has held various roles in marketing and general management  **[0001413329-24-000013_pm-20231231.htm:203]** **[0001413329-24-000013_pm-20231231.htm:202]** .                                                               |
| Lars Dahlgren      | President, Smoke-Free Oral Products & CEO of Swedish Match               | January 2023 | Lars Dahlgren was appointed as the **President, Smoke-Free Oral Products and CEO of Swedish Match** in January 2023. Before PMI's acquisition of Swedish Match, he served as the President and CEO of Swedish Match from June 2008  **[0001413329-24-000013_pm-20231231.htm:203]** .                                                                                                    |
| Frederic de Wilde  | President, South and Southeast Asia, CIS, Middle East and Africa Regions | January 2023 | Frederic de Wilde was appointed as the **President, South and Southeast Asia, CIS, Middle East and Africa Regions** at PMI in January 2023. He joined PMI in 1992 as a Brand Manager for L&M at Philip Morris Belgium and has held various roles in marketing, sales, and general management  **[0001413329-24-000013_pm-20231231.htm:203]** **[0001413329-24-000013_pm-20231231.htm:202]** .                                        |
| Reginaldo Dobrowolski | Vice President and Controller                                         | August 2021 | Reginaldo Dobrowolski was appointed as Vice President and Controller at PMI in August 2021. He previously served as Vice President, Corporate Financial Planning, Data & Reporting from May 2019 until August 2021  **[0001413329-24-000013_pm-20231231.htm:203]** **[0001413329-24-000013_pm-20231231.htm:202]** .                                                                                                                |
| Yann Guérin        | Senior Vice President and General Counsel                                | July 2023  | Yann Guérin was appointed as **Senior Vice President and General Counsel** at PMI in July 2023. He has held various legal roles across PMI's businesses since joining the company in 2006  **[0001413329-24-000013_pm-20231231.htm:203]** .                                                                                                                                           |
| Stacey Kennedy     | President, Americas Region & CEO of PMI's U.S. Business                  | January 2023 | Stacey Kennedy was appointed as the **President, Americas Region & CEO of PMI's U.S. Business** in January 2023. She previously served as the President, South and Southeast Asia Region from January 2018  **[0001413329-24-000013_pm-20231231.htm:203]** **[0001413329-24-000013_pm-20231231.htm:202]** .                                                                                                                        |
| Paul Riley         | President, East Asia, Australia, and PMI Duty Free Region                | January 2023 | Paul Riley was appointed as the **President, East Asia, Australia, and PMI Duty Free Region** in January 2023. He joined Philip Morris Australia in 1988 and has held various positions in Australia, Hong Kong, and Japan  **[0001413329-24-000013_pm-20231231.htm:204]** **[0001413329-24-000013_pm-20231231.htm:202]** .                                                                                                         |
| Stefano Volpetti   | President, Smoke-Free Inhalable Products & Chief Consumer Officer        | January 2023 | Stefano Volpetti was appointed as the **President, Smoke-Free Inhalable Products & Chief Consumer Officer** at PMI in January 2023. He joined PMI in June 2019 as Chief Consumer Officer  **[0001413329-24-000013_pm-20231231.htm:204]** **[0001413329-24-000013_pm-20231231.htm:202]** .                                                                                                                                          |

69610f35e4c57d9cdec72b29366e18f41f0f8d01a51ea87d34c535e6f8a2bb1c

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | June 11, 2021  **[0001413329-24-000172_pm-20240930.htm:172]**   |
| End Date/Duration        | July 21, 2024  **[0001413329-24-000172_pm-20240930.htm:172]**   |
| Total additional amount  | $7 billion  **[0001413329-24-000172_pm-20240930.htm:172]**      |
| Remaining authorization  | $6,016,847,275  **[0001413329-24-000172_pm-20240930.htm:172]**  |
| Details                  | Program suspended on May 11, 2022, due to the acquisition of Swedish Match. No repurchases in 2023 and 2024.  **[0001413329-24-000172_pm-20240930.htm:139]**  |

5ae5a0351609b0a96b02430f73e8ba43275ccd3b7ee64aea5e4df964f0f22498

**Annual guidance for FY 2024:**
- **Volume Growth**: +2% to +3% total shipment progression  **[PM_3403178_8]**  (no prior guidance)  
- **Adjusted IMS HTU Volume Growth**: around +13%  **[PM_3403178_8]**  (no prior guidance)  
- **Shipment Volumes**: around 140 billion units  **[PM_3403178_8]**  (no change from prior ~140 billion units  **[PM_3393936_12]** )  
- **U.S. ZYN Shipment Volume**: 570 million to 580 million cans  **[PM_3403178_8]**  (raised from 560 million to 580 million  **[PM_3393936_6]** )  
- **Organic Net Revenue Growth**: +9.5%  **[PM_3403178_8]**  (raised from +7.5% to +9%  **[PM_3393936_8]** )  
- **Adjusted Organic Operating Income (OI) Growth**: +14% to +14.5%  **[PM_3403178_8]**  (raised from +11% to +13%  **[PM_3393936_8]** )  
- **Currency-Neutral Adjusted Diluted EPS Growth**: +14% to +15%, translating into $6.45 to $6.51  **[PM_3403178_8]**   
  (raised from +11% to +13%, translating into $6.33 to $6.45  **[PM_3393936_8]** )  
- **U.S. Dollar Basis Growth**: +7% to +8%  **[PM_3403178_8]**  (raised from +5% to +7%  **[PM_3393936_8]** )  
- **Operating Cash Flow**: $11 billion  **[PM_3403178_8]**  (no change from prior ~$11 billion  **[PM_3393936_8]** )  
- **Net Debt to Adjusted EBITDA Ratio**: 0.3 to 0.4x improvement  **[PM_3403178_8]**  (lowered from 0.3x to 0.5x  **[PM_3393936_8]** )  

df6607e6400c2d7a9a5cab5f401975bfdff953a28b17fcb731d4c81018d336be

| Name                        | Start Date | End Date | Reason for Change |
|-----------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers SA  | 2008  **[0001413329-24-000013_pm-20231231.htm:196]**    | Present  | Current auditor   |

55bc10ef58b017a4268c56b71093867fb42b9bc9c558eb4c8f412d938eb993ae

abf5ea34f9d910e00166a20bbe2258f2dbd3ef61db97d95cb8c9d7f00cf3a9df

- Total Revenue: $9.911 billion (+8% YoY)  **[0001413329-24-000172_pm-20240930.htm:81]** **[0001413329-23-000201_pm-20230930.htm:85]**   
- Europe: $4.121 billion (+12% YoY)  **[0001413329-24-000172_pm-20240930.htm:81]** **[0001413329-23-000201_pm-20230930.htm:125]**   
- SSEA, CIS & MEA: $2.964 billion (+7% YoY)  **[0001413329-24-000172_pm-20240930.htm:81]** **[0001413329-23-000201_pm-20230930.htm:128]**   
- Americas: **$1.148 billion (+140% YoY)**  **[0001413329-24-000172_pm-20240930.htm:81]** **[0001413329-23-000201_pm-20230930.htm:132]**   
- Combustible Tobacco: $6.134 billion (+5% YoY)  **[0001413329-24-000172_pm-20240930.htm:81]** **[0001413329-23-000201_pm-20230930.htm:29]**   
- Smoke-Free Products: **$3.777 billion (+14% YoY)**  **[0001413329-24-000172_pm-20240930.htm:81]** **[0001413329-23-000201_pm-20230930.htm:29]**   
- Operating Income (EBIT): $3.654 billion (+8% YoY)  **[0001413329-24-000172_pm-20240930.htm:2]** **[0001413329-23-000201_pm-20230930.htm:2]**   
- Net Income: **$3.082 billion (+68% YoY)**  **[0001413329-24-000172_pm-20240930.htm:2]** **[0001413329-23-000201_pm-20230930.htm:2]**   
- EPS (Diluted): $1.98 (+50% YoY)  **[0001413329-24-000172_pm-20240930.htm:2]** **[0001413329-23-000201_pm-20230930.htm:2]**   

fb357be6c04a0e2ae79223b21c09a36dbd89621912dca27a6abb8061c4140356

8b8d59eca4d920e2ebc8bedfea41d4fdc225641a87b156c5e9e211fd2bdf9965

1. **Margin Outlook**  
   **Q:** Are you expecting operating margin expansion in 2024?  
   **A:** Yes, management confirms that they expect both **gross margin and operating margin expansion** in 2024, supported by progress in profitability of smoke-free products like IQOS and ZYN. They anticipate continued margin improvement despite investments, with U.S. operations being "super nicely accretive" to financial performance.  **[PM_3372454_11]** **[PM_3372454_12]** 

2. **Regulatory Risks on ZYN**  
   **Q:** How are you addressing potential regulatory challenges for ZYN?  
   **A:** Management acknowledges recent concerns about ZYN in the U.S. but emphasizes their commitment to responsible marketing practices targeting adult smokers. They highlight that ZYN has been in the U.S. market for **10 years** with underage usage remaining well below **1%**, according to CDC data. They are confident in ZYN's sustainability and growth, underpinned by strong science and pending PMTA with the FDA.  **[PM_3372454_14]** **[PM_3372454_15]** 

3. **U.S. IQOS Launch After BAT Settlement**  
   **Q:** How does the BAT settlement affect your U.S. IQOS strategy?  
   **A:** The settlement allows PMI to sell IQOS in the U.S. using their international supply chain from day one, benefiting from economies of scale. This clarity accelerates their commercialization plans, avoiding elevated costs associated with alternative U.S. manufacturing.  **[PM_3372454_16]** 

4. **ZYN Growth Outlook**  
   **Q:** Is ZYN’s growth guidance conservative given recent performance?  
   **A:** While acknowledging ZYN's phenomenal growth in the U.S., management suggests the guidance implies volume growth similar to prior years. They attribute ZYN's success to its appeal among adult smokers switching from combustibles and other nicotine products. Cautious guidance reflects potential regulatory uncertainties and prudent forecasting.  **[PM_3372454_15]** 

5. **Smoke-Free Revenue vs. Group Revenue**  
   **Q:** Why doesn't smoke-free acceleration translate to higher group revenue growth in 2024?  
   **A:** Despite expecting acceleration in smoke-free products, management anticipates a softer performance in combustibles due to less pricing variance compared to last year's **9%** increase. They guide to a **mid-single-digit price increase** for 2024, impacting overall revenue growth.  **[PM_3372454_18]** **[PM_3372454_19]** 

6. **Argentine Peso Impact**  
   **Q:** What is the impact of Argentine peso devaluation on earnings?  
   **A:** The devaluation led to a **$0.19** EPS impact linked to balance sheet revaluation. Any further devaluation would have a reduced effect, as the basis has already been significantly adjusted.  **[PM_3372454_13]** 

7. **Heated Tobacco Growth Drivers**  
   **Q:** What markets will drive heated tobacco growth in 2024?  
   **A:** Management expects mid-teens growth in heated tobacco sales, with Europe within that range despite potential distortions from flavor regulations. Growth is also anticipated from opening markets like Taiwan and Saudi Arabia, while the U.S. contribution will come from test markets of IQOS 3.0.  **[PM_3372454_17]** 

8. **Threat from Disposable Vaping Products**  
   **Q:** Could disposable vaping products threaten your business in 2024?  
   **A:** Management believes these products pose less of a threat in their key markets, attributing their limited success to focus on flavors and lack of appeal to core smokers preferring traditional tobacco experiences. Regulatory environments in Europe also limit their impact compared to markets like the U.S. and U.K.  **[PM_3372454_19]** **[PM_3372454_20]** 

9. **Investment Levels and Margin Expectations**  
   **Q:** Will increased investments affect margin expansion in 2024?  
   **A:** Management asserts that continued investments to support revenue growth will not hinder margin expansion. They anticipate enough resources to invest in growth opportunities like the U.S. market while still improving margins, aided by economies of scale and easing cost pressures from 2025 onward.  **[PM_3372454_22]** 

716bfe870a11450eec6a9a6196dee8fc5aa3f30f679f45a61690c87f1d992557

- **Legal uncertainties surrounding ZYN in the U.S. could impact sales, as the company closed zyn.com sales due to a subpoena in the District of Columbia, with no clear timeline for resolution.**  **[PM_3393936_18]**
- **Delays in regulatory approvals, such as the ongoing delay in approval for IQOS commercialization in Taiwan, and slower recovery from the flavor ban in Europe, are causing headwinds, including an expected reduction of around 2 billion units in the full-year adjusted IMS forecast.**  **[PM_3393936_4]**
- **Competition from unauthorized modern oral products in the U.S. market poses risks to market share and growth for PM's ZYN, as new brands without PMTA submissions are appearing, potentially leading to a scenario similar to the vape market's issues with illegal products.**  **[PM_3393936_19]**

ce18c3dc6fce65e7b14ab02b0391d71e9ee3f69f3318fe58a442410630fa9ba5

1. **Currency Mitigation Strategies**  
   **Q:** How will you mitigate ongoing currency headwinds?  
   **A:** We aim to deliver performance in dollar terms despite significant forex headwinds, including a **$0.06** impact from the Egyptian pound in Q1.  **[PM_3380257_10]**  We are using two main levers: pushing price increases across the board, especially in combustible products without risking market share, and accelerating productivity and cost efficiency initiatives, including our **$2 billion** savings program.  **[PM_3380257_10]**  While we can't offset all forex impacts, our Q1 results show our capacity to significantly mitigate them.  **[PM_3380257_10]** 

2. **Pricing Strategy for Growth**  
   **Q:** Could pricing be higher than low single digits?  
   **A:** We plan to increase prices in heated tobacco products by low single digits, not at the level of combustibles.  **[PM_3380257_14]**  Our focus is on maximizing volume growth, which drives significant profit due to higher per-stick revenue and gross margins in smoke-free products.  **[PM_3380257_14]**  We believe it's important to balance price and volume to continue our strong momentum.  **[PM_3380257_14]** 

3. **Growth in New Markets**  
   **Q:** Any upside potential in new markets like Indonesia and Mexico?  
   **A:** We're seeing very promising trajectories in new markets like Indonesia and Mexico, where we've just launched ILUMA.  **[PM_3380257_12]**  IQOS is gaining traction, especially in big cities where the potential is highest.  **[PM_3380257_12]**  We expect further acceleration in the second half of the year and believe IQOS is becoming an aspirational product in these markets, which is extremely positive for our future growth.  **[PM_3380257_12]** 

4. **ZYN Supply Constraints**  
   **Q:** How have ZYN out-of-stocks affected volumes?  
   **A:** With ZYN growing **80%**, we've faced supply chain tensions.  **[PM_3380257_11]**  While some references may not always be available, Nielsen data shows we're growing fast with limited impact on volumes.  **[PM_3380257_11]**  We're working hard to maximize capacity and are comfortable delivering around **550 million cans**, though that's not our production limit.  **[PM_3380257_11]** 

5. **Driving Dollar EPS Growth**  
   **Q:** What's new to drive dollar growth despite FX headwinds?  
   **A:** We're generating strong growth before forex impacts and targeting double-digit operating income growth in 2024.  **[PM_3380257_17]**  We're able to implement significant price increases, especially in combustibles, and are reaching critical mass in smoke-free products, allowing for greater efficiency.  **[PM_3380257_17]**  Our strategies include ongoing investments to maximize growth potential, differentiating us from other consumer staples.  **[PM_3380257_17]** 

6. **Impact of Russia on Results**  
   **Q:** How does Russia affect your EPS and IQOS volumes?  
   **A:** Russia's contribution to EPS has decreased due to currency depreciation, from around **7-8%** to less.  **[PM_3380257_16]**  While IQOS volumes in Russia grew, it's important to interpret shipments cautiously as they may not fully reflect consumer off-take.  **[PM_3380257_16]**  Russia hasn't shown meaningful growth since the Ukraine conflict began.  **[PM_3380257_16]** 

7. **Heated Tobacco Pricing**  
   **Q:** Why not increase cigarette prices to boost IQOS growth?  
   **A:** While we could tactically use pricing in markets where heated tobacco is dominant, our focus remains on maximizing volumes.  **[PM_3380257_15]**  We prioritize growing IQOS volumes, which have higher per-stick revenue and gross margins.  **[PM_3380257_15]**  In markets like Japan, price increases require government approval, limiting our ability to adjust prices freely.  **[PM_3380257_15]** 

8. **Vaping Profitability**  
   **Q:** What volumes do you expect in vaping, and profitability timing?  
   **A:** VEEV started well in terms of volumes.  **[PM_3380257_13]**  Though modest compared to IQOS and ZYN, we're focusing on markets where we can achieve profitability, like Italy, Czech Republic, France, the UK, and Canada.  **[PM_3380257_13]**  We expect VEEV to become profitable in the second half of the year.  **[PM_3380257_13]** 

9. **German Excise Tax Ruling**  
   **Q:** Implications of EU court ruling on German excise tax?  
   **A:** The court ruling is a German-specific matter with no implications for other countries.  **[PM_3380257_14]**  It's about whether Germany implemented the extra tax according to EU law.  **[PM_3380257_14]**  We don't know when the Düsseldorf court will make its final decision, but it should be in the coming months.  **[PM_3380257_14]** 

10. **First-Quarter Performance**  
    **Q:** Why was Q1 ahead of guidance, and outlook raised less?  
    **A:** Q1 benefited from an additional **1 billion** heated tobacco units due to RESI, which we expect to reverse later in the year.  **[PM_3380257_9]**  SG&A increased only **1.4%** organically, but we anticipate higher SG&A in the rest of the year due to phasing of commercial actions and marketing starting in Q2.  **[PM_3380257_9]**  These factors added to our strong underlying momentum in Q1.  **[PM_3380257_9]** 

5d7c2a956c8dd226c58298c6cb5f8ebb3303b82adb1fff7c69d6f98fe3fa0e3f

1. **Cigarette Volume and Pricing Outlook**  
   **Q:** Will strong cigarette volumes and pricing continue in FY25?  
   **A:** Management noted that cigarette volumes remain positive despite an **8% to 9%** pricing increase.  **[PM_3403178_12]**  They attributed strong volumes to factors like lack of illicit trade in markets such as Brazil and Turkey.  **[PM_3403178_12]**  While they did not provide specific guidance for FY25, they acknowledged these factors may continue beyond 2024.  **[PM_3403178_12]**  They expect continued pricing power but advised not to assume the same level of increase in the future, emphasizing mid-single-digit growth over the medium term.  **[PM_3403178_12]** 

2. **IQOS Volume Trajectory**  
   **Q:** What's the outlook for IQOS shipment volumes and growth?  
   **A:** Management highlighted a reacceleration in adjusted in-market sales for IQOS, reaching nearly **15%** growth in Q3.  **[PM_3403178_10]**  Japan showed strong performance with around **14%** growth, and Europe resumed double-digit growth following flavor ban disruptions.  **[PM_3403178_10]**  They expect shipments and adjusted in-market sales to align over time, with renewed momentum anticipated in Q4.  **[PM_3403178_10]** 

3. **ZYN Supply Constraints**  
   **Q:** When will ZYN supply issues be resolved?  
   **A:** They expect to meet consumer demand for ZYN sometime in Q4, though full inventory replenishment will likely extend into **2025**.  **[PM_3403178_11]**  Capacity is targeted to reach around **900 million cans** for the full year 2025, increasing gradually.  **[PM_3403178_11]**  The impact on market share recovery is difficult to specify at this stage.  **[PM_3403178_11]** 

4. **Deleveraging and Refinancing Plans**  
   **Q:** What's impacting deleveraging and any refinancing plans?  
   **A:** The slight narrowing of deleveraging guidance is due to euro strength affecting debt calculations.  **[PM_3403178_15]**  Year-to-date cash flow generation is **$8.2 billion**, an increase of **$2.3 billion** over the prior year.  **[PM_3403178_15]**  Management is considering refinancing options in the coming months but did not elaborate further.  **[PM_3403178_15]** 

5. **E-Cigarette Shipments and Revenue**  
   **Q:** Can you detail e-cigarette shipments and run rate?  
   **A:** Using the conversion of **1 milliliter equals 10 sticks**, management confirmed shipments of **1.2 billion e-cigarettes** year-to-date.  **[PM_3403178_13]**  While they did not comment on revenue specifics, they acknowledged that the analyst's estimates were not far off.  **[PM_3403178_13]** 

6. **Vapor Adoption vs. Heated Tobacco**  
   **Q:** Is vapor adoption accelerating compared to heated tobacco?  
   **A:** Management does not see any acceleration in vaping adoption.  **[PM_3403178_14]**  They emphasized that heated tobacco products have much higher conversion rates for smokers due to a more similar experience.  **[PM_3403178_14]**  The vaping market faces regulatory challenges and concerns over underage consumption, impacting its growth.  **[PM_3403178_14]** 

7. **Illicit Nicotine Pouches in the U.S.**  
   **Q:** What actions are taken against illicit nicotine pouches?  
   **A:** The company is actively fighting illicit trade by working with authorities and taking measures like terminating sales to sources of illicit products.  **[PM_3403178_14]**  They send cease and desist letters to distributors and retailers when necessary and invest significantly in combating illicit activities.  **[PM_3403178_14]** 

8. **Canadian Litigation Settlement**  
   **Q:** Will the settlement payments be tax-deductible?  
   **A:** Management stated it's too early to determine the tax deductibility of the Canadian litigation settlement payments.  **[PM_3403178_16]**  They will provide more information once final terms are settled but could not specify when that will be.  **[PM_3403178_16]** 

bbfd686404a5b7cca817c6e8e5ca305858855f1ae7c3170ef02cf615d0dd56c0

- **Growing competition from vapor products in Europe:** An analyst highlighted that in Europe, **vapor is seeing greater success in fully converting smokers than heated tobacco**, suggesting potential challenges for PMI's heated tobacco products  **[PM_3403178_14]** .
- **Uncertain financial impact from Canadian litigation settlement:** PMI stated it's **too preliminary** to determine if **settlement payments will be tax-deductible**, leaving financial implications unclear  **[PM_3403178_16]** .
- **Challenges with illicit nicotine pouch products in the U.S.:** PMI is encountering **illicit products infringing on their patents**, which could impact their nicotine pouch market share and revenue  **[PM_3403178_14]** .

d626f98bce304480a6d8af43869eb37a6bcb70d7183788b22a93e87ed38ae668

636b86f3b0ef598d527c74cf2a130de94d9202acca110cf6101a01e4172c5527

- **Strong Expansion in New Markets for IQOS:** PMI is experiencing promising trajectories in new markets such as Indonesia and Mexico, with acceleration expected in the second half of the year, demonstrating significant growth potential for their IQOS product line.  **[PM_3380257_12]**
- **Accelerating Operating Income Growth and Targeting Double-Digit Growth Before Currency Impact:** PMI is in a position to deliver strong growth before FX impacts, with dynamic top-line growth and accelerating operating income growth, targeting double-digit growth before currency impact in 2024. They are leveraging tactical pricing and efficiency initiatives to enhance profitability.  **[PM_3380257_17]**
- **Progress in Vaping Category with VEEV Moving Towards Profitability:** PMI is making strong progress in the vaping category, with VEEV showing promising volume growth and expected to become profitable in the second half of the year, expanding in key markets such as Italy, Czech Republic, France, UK, and Canada.  **[PM_3380257_13]**

8aa5903b05cde7b611c2f112ec1addaa8514d140852b8a69c8776dbb8318f6d7

- **Improved financial costs due to better debt levels and strong cash flow generation**, placing estimated interest expenses at the low end of prior ranges.  **[PM_3393936_25]**
- **Successful price increases in combustible products**, achieving an **8.7% price increase in H1**, demonstrating strong pricing power and optimization strategies across markets.  **[PM_3393936_10]**
- **Significant international growth potential for nicotine pouches**, with expansion of **ZYN** into new markets such as Austria, the UK, Switzerland, Pakistan, South Africa, Indonesia, the Philippines, and Mexico, aiming to capture a fair share of this growing category.  **[PM_3393936_14]**

014d9d242a146805f9830423a28e46b443b94b4c6459588b3b325b8914ede49e

- **Strong Pricing Power with Volume Growth**: Philip Morris International achieved a remarkable **9.7% price increase in Q3** for combustible cigarettes while also growing volumes and market share, demonstrating the strength of their brands and pricing power.  **[PM_3403178_12]**
- **Continued Robust Growth of IQOS**: IQOS adjusted in-market sales grew by **almost 15%** globally in Q3, with strong performance in Japan (**around 14% growth**) and a reacceleration in Europe after the flavor ban disruption. There is significant growth potential in new markets like Indonesia, Saudi Arabia, and Mexico, indicating promising future growth beyond traditional markets.  **[PM_3403178_10]**
- **Strong Cash Flow Generation**: PMI generated **$8.2 billion in cash flow** at the end of Q3, which is **$2.3 billion above** the prior year, underscoring the strong momentum of the business and providing opportunities for debt management and shareholder returns.  **[PM_3403178_15]**

76528f8bb014a067f0f15fa855f46621b66f68e01540669bfbe558735091fda5

| Year | Amount Due (in millions) | Debt Type                                   | Interest Rate (%)       | % of Total Debt                                                                                     |
|----------|------------------------------|------------------------------------------------|-----------------------------|---------------------------------------------------------------------------------------------------------|
| 2024     | $4,833 **[0001413329-24-000172_pm-20240930.htm:58]**               | Current portion of long-term debt              | N/A                         | 9.8% = (4,833 / 49,200) * 100 **[0001413329-24-000172_pm-20240930.htm:138]** **[0001413329-24-000172_pm-20240930.htm:58]**                                                          |
| 2024     | $299 **[0001413329-24-000172_pm-20240930.htm:58]**                 | Swiss franc note                               | 1.625 **[0001413329-24-000172_pm-20240930.htm:58]**               | 0.6% = (299 / 49,200) * 100 **[0001413329-24-000172_pm-20240930.htm:138]** **[0001413329-24-000172_pm-20240930.htm:58]**                                                            |
| 2025     | $3,000 **[0001413329-24-000172_pm-20240930.htm:138]**               | Euro credit facility borrowings                | 4.009 (average) **[0001413329-24-000172_pm-20240930.htm:58]**     | 6.1% = (3,000 / 49,200) * 100 **[0001413329-24-000172_pm-20240930.htm:138]** **[0001413329-24-000172_pm-20240930.htm:58]**                                                          |
| 2027     | $2,500 **[0001413329-24-000172_pm-20240930.htm:138]**               | Euro credit facility borrowings                | 4.009 (average) **[0001413329-24-000172_pm-20240930.htm:58]**     | 5.1% = (2,500 / 49,200) * 100 **[0001413329-24-000172_pm-20240930.htm:138]** **[0001413329-24-000172_pm-20240930.htm:58]**                                                          |
| 2027     | $6,140 **[0001413329-24-000172_pm-20240930.htm:58]**               | Euro credit facility borrowings (Swedish Match acquisition) | 4.009 (average) **[0001413329-24-000172_pm-20240930.htm:58]** | 12.5% = (6,140 / 49,200) * 100 **[0001413329-24-000172_pm-20240930.htm:138]** **[0001413329-24-000172_pm-20240930.htm:58]**                                                         |
| 2029     | $236 **[0001413329-24-000172_pm-20240930.htm:58]**                 | Swedish krona notes                            | 1.395 to 2.710 (avg 2.016) **[0001413329-24-000172_pm-20240930.htm:58]** | 0.5% = (236 / 49,200) * 100 **[0001413329-24-000172_pm-20240930.htm:138]** **[0001413329-24-000172_pm-20240930.htm:58]**                                                            |
| 2032     | $486 **[0001413329-24-000172_pm-20240930.htm:58]**                 | Other (includes bank loans and finance leases) | 5.038 (average) **[0001413329-24-000172_pm-20240930.htm:58]**     | 1.0% = (486 / 49,200) * 100 **[0001413329-24-000172_pm-20240930.htm:138]** **[0001413329-24-000172_pm-20240930.htm:58]**                                                            |
| 2039     | $8,126 **[0001413329-24-000172_pm-20240930.htm:58]**               | Euro notes                                     | 0.125 to 3.750 (avg 1.964) **[0001413329-24-000172_pm-20240930.htm:58]** | 16.5% = (8,126 / 49,200) * 100 **[0001413329-24-000172_pm-20240930.htm:138]** **[0001413329-24-000172_pm-20240930.htm:58]**                                                         |
| 2044     | $34,082 **[0001413329-24-000172_pm-20240930.htm:58]**              | U.S. dollar notes                              | 0.875 to 6.375 (avg 4.572) **[0001413329-24-000172_pm-20240930.htm:58]** | 69.3% = (34,082 / 49,200) * 100 **[0001413329-24-000172_pm-20240930.htm:138]** **[0001413329-24-000172_pm-20240930.htm:58]**                                                        |

2986d6cb22e3361f43c2a0c29488d0b4cdaec9d3f654e98797ab53de9accfc86

1. **HTU Shipment Guidance Adjusted**  
   **Q:** Why did you lower your HTU shipment volume outlook?  
   **A:** We revised our adjusted in-market sales by around **2 billion units** due to delays in Taiwan, now assuming zero volume there this year.  **[PM_3393936_12]**  Additionally, the EU flavor ban impacted volumes more than expected, particularly in Italy where growth was affected quicker than anticipated.  **[PM_3393936_12]** 

2. **ZYN Capacity and U.S. Growth**  
   **Q:** How will increased ZYN capacity affect U.S. volumes?  
   **A:** We're targeting around **900 million cans** of ZYN production capacity for next year.  **[PM_3393936_11]**  This expanded capacity will meet consumer demand and create headroom for growth in the coming quarters.  **[PM_3393936_16]** 

3. **IQOS ILUMA Performance**  
   **Q:** How is IQOS ILUMA performing in Japan?  
   **A:** IQOS ILUMA i has driven new user acquisitions and increased consumer satisfaction in Japan.  **[PM_3393936_13]**  We've seen positive impacts on growth and plan to launch in additional countries in the second half.  **[PM_3393936_13]** 

4. **Illicit Nicotine Pouch Sales**  
   **Q:** Are illicit nicotine pouches affecting the U.S. market?  
   **A:** We haven't observed any material impact from illicit nicotine pouch sales in the U.S..  **[PM_3393936_19]**  We're monitoring closely and expect authorities to act proactively if it becomes an issue.  **[PM_3393936_19]** 

5. **International Nicotine Pouch Growth**  
   **Q:** How is the growth of nicotine pouches internationally?  
   **A:** Nicotine pouches are gaining interest globally, especially in the Nordics, parts of Europe like Austria, the U.K., and Switzerland, and markets like Pakistan, South Africa, Indonesia, the Philippines, and Mexico.  **[PM_3393936_14]**  We're aiming to capture our fair share of this growing category.  **[PM_3393936_14]** 

6. **Vaping Category Development**  
   **Q:** How is your VEEV product performing in the vaping category?  
   **A:** VEEV ONE is performing well, achieving the **#1 position in five countries** for closed pods.  **[PM_3393936_16]**  The vaping category attracts different users than heated tobacco, and we're growing responsibly with strong commercial partnerships.  **[PM_3393936_16]** 

7. **IQOS ILUMA Testing in U.S.**  
   **Q:** What are your plans for IQOS ILUMA in the U.S.?  
   **A:** We'll pursue a scaled launch after receiving PMTA approval, targeted for the second half of **2025**.  **[PM_3393936_23]**  Until then, we'll focus on learning and adapting successful strategies from other markets to resonate with U.S. smokers.  **[PM_3393936_23]** 

8. **Interest Expense Guidance**  
   **Q:** Any updates on interest expense and financing?  
   **A:** We're at the low end of our prior interest expense range, about **$1.3 billion**.  **[PM_3393936_25]**  This reflects better debt levels due to cash flow generation and effective financing; no significant changes in financing strategy are planned.  **[PM_3393936_25]** 

df6fa2dc0b5466e91b166906733951bee766bf92731126e1d1e0a76af4416fcb

- **Philip Morris expects gross margin and operating margin expansion based on their guidance**, as confirmed by CFO Emmanuel Babeau.  **[PM_3372454_12]**
- **Strong growth of IQOS in key European markets** like Germany, Italy, and Spain, with significant progress despite competitive pressures, demonstrates the company's ability to drive growth in the smoke-free product segment.  **[PM_3372454_17]**
- **Quick market share gains in new categories and markets**, such as achieving double-digit market shares in Italy and Czech Republic within less than 12 months, show PM's effectiveness in capitalizing on sustainable opportunities with better margins and profitability.  **[PM_3372454_20]**

8396d6002583603eb416bd82515f20b43cf615a52bfd102c5dfc3ff1b2ce757d

- **Philip Morris International expects lower revenue growth from combustibles in 2024 due to reduced pricing power**, as they do not intend to repeat the exceptional 9% price increase from last year and are guiding to mid-single-digit price increases instead. This may negatively impact revenue growth in their combustible business.  **[PM_3372454_18]**
- **Currency devaluations, notably the Argentine peso, have adversely impacted EPS**, with a **$0.19** negative effect linked to balance sheet revaluation. Further devaluations, while uncertain, could continue to pose a risk to earnings.  **[PM_3372454_13]**
- **The rise of disposable vaping products in markets like the U.S. and U.K. could pose a competitive threat to PM's business**, especially if these products gain traction in key markets where PM operates, potentially impacting their combustible cigarette and smoke-free product volumes.  **[PM_3372454_19]** **[PM_3372454_20]**

2ccf89c251624923083f116fb75be4da9b965bdefc1c8348764dc9a47c77c7ba

- **PM has experienced minimal dollar EPS growth over the past decade, compounding at only about **1.5%**, despite strong organic growth, due to persistent FX headwinds. The company's ability to offset these currency impacts remains uncertain, raising concerns about future dollar-denominated earnings growth.**  **[PM_3380257_17]**
- **The company's strategies to mitigate currency headwinds through pricing and cost efficiencies may be insufficient, as there are challenges in further price increases, especially in combustible products, and ongoing currency volatility may continue to impact financial performance.**  **[PM_3380257_10]**
- **Uncertainties in the growth of new markets and products, such as the unclear expansion plans for the Bonds product and reliance on newer markets like Indonesia, could limit PM's future growth potential if these initiatives do not meet expectations.**  **[PM_3380257_12]**

573ef15a734312fb1ef26c1926404ac83f8a690967d6fe4ebf8cf1f14d6f2dc4

Philip Morris International Inc (PM)

Financials