Our progress | Philip Morris International | Delivering a Smoke-Free Future

Led by science and innovation, PMI’s goal is to end the sale of cigarettes.

We are delivering smoke-free products that are a better choice for adults than continued smoking.

Our ambition is to become substantially smoke-free by 2030, with our smoke-free business generating over two-thirds of total net revenues.

Our progress toward a smoke-free future as of Q2 2024

38 percent

of PMI’s total net revenues came from our smoke-free business.
36.5 million

estimated total adult users of PMI’s smoke-free products. ¹
90 markets

where our smoke-free products are available. ¹
USD >12.5 billion

invested to develop, scientifically substantiate, and commercialize smoke-free products since 2008. ²

¹ As of June 30, 2024. ² As of December 31, 2023. Important Note: This information should be read in conjunction with the Philip Morris International Inc. earnings release dated July 23, 2024, as well as the accompanying glossary of key terms, definitions, explanatory notes, select financial information and reconciliations of non-GAAP financial measures, both of which are available on our Investor Relations pages. “PMI” refers to Philip Morris International Inc. and its subsidiaries.

PMI's smoke-free vision

Emmanuel Babeau shares his highlights from our Q2 Results

Our second quarter figures are available,

and our performance for the first half of the year is outstanding. The growth in

volume and the double digit organic growth of revenues has

been first and foremost generated by the continued very

strong momentum behind our Smoke-free portfolio in the second quarter of 2024.

Our smoke free business accounted for 38.1% of our total net revenues, up by 2.7 percentage points versus the second

quarter last year. As well as this, the estimated total

number of adult users of PMI smoke free product is up strongly to 36.5 million as we grow across our smoke free platform.

This momentum across our portfolio, together with price action and cost efficiency deployment,

allows us to deliver excellent financial performance in H1, with revenue growing

globally by more than 10% organically. Operating

income and adjusted EPs growing around 17% excluding forex.

This is a further acceleration versus 2023.

We're accelerating toward our smoke-free ambitions

* Smoke-free product net revenues as of Q3 2014.
** Smoke-free business net revenues as of Q2 2024.

It’s time to make smoking history

Voiceover: Jacek Olczak, CEO, Philip Morris International

This company wants to change the world.

If we can get there this is going to be really phenomenal

Fast-paced music starts

Words on screen read: That’s why at Philip Morris International, we’ve committed to deliver a smoke-free future.

Voiceover: Stefano Volpetti, President, Smoke-Free Inhaled Products & Chief Consumer Officer, PMI.

This company has had the courage, the vision and leadership to establish a new direction.

Voiceover: Bin Li, Chief Product Officer, PMI

It's very difficult for a company to sign up for a big transformation like this.

Words on screen read: Our ambition? To move away from cigarettes.

Voiceover: Stacey Kennedy, President Americas Region and CEO of PMI’s U.S. business:

We are building our company's future around better alternatives to smoking.

Voiceover: Michael Voegele, Chief Digital and Information Officer, PMI:

I think it's a unique challenge being part of a team that revolutionizes the industry

Words on screen read: Since 2008, we’ve invested over 12.5 billion dollars in scientific substantiated smoke-free products.

Voiceover: Jacek Olczak, CEO, Philip Morris International

The end of cigarettes is given, it's about setting a date, setting a timetable, setting a path to get there.

Words on screen read: And by 2030, we aim to have more than two-thirds of our net revenue come from smoke-free business.

We were at 39% (as end of Q4 2023).

Moira Gilchrist, Chief Communications Officer, speaks:

So we've become a company that's centered on bringing better options to people.

Voiceover: Lars Dahlgren, President, Smoke-Free Oral Products and CEO, Swedish Match:

I've been impressed with the boldness of PMI articulating that the future is smoke free products.

Words on screen read: Currently our smoke-free products are available in 84 markets

Voiceover: Dr Moira Gilchrist, Chief Communications Officer, PMI:

We set out to develop these products and gather scientific evidence.

Voiceover: Dr Badrul Chowdhury, Chief Life Sciences Officer, Smoke-Free Products:

You actually have a product where the hundred or so chemicals which are known to be harmful are reduced or eliminated. That's the scientific breakthrough.

Voiceover: Dr Moira Gilchrist, Chief Communications Officer, PMI:

This is transforming the entire industry.

Voiceover: Jacek Olczak, CEO, Philip Morris International:

The evidence is clear. Smoke-free alternatives can accelerate the end of smoking. The world has to move now to help smokers to move to the better alternative.

Words on screen read: 28.6 million adults globally are using our leading heated tobacco product, of which 20.8 million have switched completely and stopped smoking.

Voiceover: Jacek Olczak, CEO, Philip Morris International:

It's time to make smoking history.

Philip Morris International is seen on screen.