8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 20, 2011

Philip Morris International Inc.

(Exact name of registrant as specified in its charter)

Virginia	1-33708	13-3435103
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
120 Park Avenue, New York, New York		10017-5592
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (917) 663-2000

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

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

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

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

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

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

Item 2.02. Results of Operations and Financial Condition.

On October 20, 2011, Philip Morris International Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2011 and held a live audio webcast to discuss such results. In connection with this webcast, the Company is furnishing to the Securities and Exchange Commission the following documents attached as exhibits to this Current Report on Form 8-K and incorporated herein by reference to this Item 2.02: the earnings release attached as Exhibit 99.1 hereto, the conference call transcript attached as Exhibit 99.2 hereto and the webcast slides attached as Exhibit 99.3 hereto.

In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibits 99.1, 99.2 and 99.3, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in Item 2.02 of this Current Report on Form 8-K shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as may be expressly set forth by specific reference in such filing or document.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1	Philip Morris International Inc. Press Release dated October 20, 2011 (furnished pursuant to Item 2.02)
99.2	Conference Call Transcript dated October 20, 2011 (furnished pursuant to Item 2.02)
99.3	Webcast Slides dated October 20, 2011 (furnished pursuant to Item 2.02)

SIGNATURES

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

PHILIP MORRIS INTERNATIONAL INC.
By:	/s/ JERRY WHITSON
Name:	Jerry Whitson
Title:	Deputy General Counsel and Corporate Secretary

DATE: October 20, 2011

EXHIBIT INDEX

Exhibit No.	Description
99.1	Philip Morris International Inc. Press Release dated October 20, 2011 (furnished pursuant to Item 2.02)
99.2	Conference Call Transcript dated October 20, 2011 (furnished pursuant to Item 2.02)
99.3	Webcast Slides dated October 20, 2011 (furnished pursuant to Item 2.02)

EX-99.1

Exhibit 99.1

PHILIP MORRIS INTERNATIONAL INC. (PMI) REPORTS 2011 THIRD-QUARTER RESULTS;

NARROWS 2011 EPS GUIDANCE TO A RANGE OF $4.75 TO $4.80

• Reported diluted earnings per share of $1.35, up by 36.4%, or by 32.3% excluding currency, versus $0.99 in 2010

• Adjusted diluted earnings per share of $1.37, as detailed in the attached Schedule 12, up by 37.0%, or by 33.0% excluding currency, versus $1.00 in 2010

• Cigarette shipment volume growth of 4.4%, excluding acquisitions

• Reported net revenues, excluding excise taxes, up by 26.4% to $8.4 billion, or by 15.9% excluding currency

• Reported operating companies income up by 29.2% to $3.8 billion, or by 23.1% excluding currency

• Adjusted operating companies income, which reflects the items detailed in the attached Schedule 11, up by 29.8% to $3.8 billion, or by 23.7% excluding currency and acquisitions

• Operating income up by 29.7% to $3.7 billion

• Free cash flow, defined as net cash provided by operating activities less capital expenditures:

• Up for the quarter by 25.6% to $2.8 billion, or by 16.1% to $2.6 billion excluding currency, as detailed in the attached Schedule 19

• Up for the first nine months of the year by 22.1% to $9.0 billion, or by 15.6% to $8.5 billion excluding currency, as detailed in the attached Schedule 19

• Increased its regular quarterly dividend during the quarter by 20.3% to an annualized rate of $3.08 per common share

• Repurchased 21.2 million shares of its common stock for $1.4 billion during the quarter

• PMI narrows its forecast for 2011 full-year reported diluted earnings per share to a range of $4.75 to $4.80, up by approximately 21% to 22.5% versus $3.92 in 2010

• Excluding a forecasted total favorable currency impact of approximately $0.20 for the full-year 2011, reported diluted earnings per share are projected to increase by approximately 16% to 17.5% versus $3.92 in 2010, or by approximately 17.5% to 19% versus adjusted diluted earnings per share of $3.87 in 2010 as detailed in the attached Schedule 20

NEW YORK, October 20, 2011 – Philip Morris International Inc. (NYSE / Euronext Paris: PM) today announced its 2011 third-quarter results.

“While we benefited from a relatively undemanding comparison, our results this quarter were simply superb on each and every key performance measure. Our business in Japan was a key driver of our stellar results, but elsewhere we enjoyed very solid growth and improving trends in virtually all geographies,” said Louis C. Camilleri, Chairman and Chief Executive Officer.

“It is heartening to witness that the efforts deployed by all our employees are being rewarded by such significant progress and continued strong momentum.”

Conference Call

A conference call, hosted by Hermann Waldemer, Chief Financial Officer, with members of the investment community and news media, will be webcast at 9:00 a.m., Eastern Time, on October 20, 2011. Access is available at www.pmi.com.

Dividends and Share Repurchase Program

PMI increased its regular quarterly dividend during the quarter to $0.77, up 20.3% from $0.64, which represents an annualized rate of $3.08 per common share. Since its spin-off in March 2008, PMI has increased its regular quarterly dividend by 67.4% from the initial annualized dividend rate of $1.84 per common share.

During the third quarter, PMI spent $1.4 billion to repurchase 21.2 million shares of its common stock, as shown in the table below.

Current $12 Billion, Three-Year Program

	Value		Shares
	($ Mio.)		000
May-December 2010		2,953		55,933
January-March 2011		1,356		22,154
April-June 2011		1,548		22,660
July-September 2011		1,448		21,210
Total Under Program		7,305		121,957

PMI’s 2011 full-year forecast includes planned share repurchases of approximately $5.0 billion against its previously communicated three-year share repurchase program of $12 billion, initiated in May 2010.

Since May 2008, when PMI began its first share repurchase program, the company has spent an aggregate of $20.3 billion to repurchase 399.6 million shares at an average price of $50.81, or 18.9% of the shares outstanding at the time of the spin-off in March 2008.

2011 Full-Year Forecast

PMI narrows its forecast for 2011 full-year reported diluted earnings per share from its previous guidance range of $4.70 to $4.80 to a range of $4.75 to $4.80, up by approximately 21% to 22.5% versus $3.92 in 2010. Excluding a forecasted total favorable currency impact of approximately $0.20 for the full-year 2011, reported diluted earnings per share are projected to increase by approximately 16% to 17.5% versus $3.92 in 2010, or by approximately 17.5% to 19% versus adjusted diluted earnings per share of $3.87 in 2010 as detailed in the attached Schedule 20.

This guidance excludes the impact of any potential future acquisitions, asset impairment and exit cost charges, and any unusual events. The factors described in the Forward-Looking and Cautionary Statements section of this release represent continuing risks to these projections.

2

2011 THIRD-QUARTER CONSOLIDATED RESULTS

Management reviews operating companies income (OCI), which is defined as operating income before corporate expenses and amortization of intangibles, to evaluate segment performance and to allocate resources. In the following discussion, the term “net revenues” refers to net revenues, excluding excise taxes, unless otherwise stated. Management also reviews OCI, operating margins and EPS on an adjusted basis (which may exclude the impact of currency and other items such as acquisitions or asset impairment and exit costs), EBITDA, free cash flow and net debt. Management believes it is appropriate to disclose these measures to help investors analyze business performance and trends. For a reconciliation of operating companies income to operating income, see the Condensed Statements of Earnings provided with this release. Reconciliations of non-GAAP measures to corresponding GAAP measures are also provided with this release. References to total international cigarette market, total cigarette market, total market and market shares are PMI estimates based on latest available data from a number of sources. Comparisons are to the same prior-year period unless otherwise stated.

NET REVENUES

	PMI Net Revenues ($ Millions)
	Third-Quarter										Nine Months Year-To-Date
								Excl.										Excl.
	2011		2010		Change			Curr.			2011		2010		Change			Curr.
European Union	$	2,506	$	2,139		17.2	%		2.2	%	$	7,004	$	6,618		5.8	%		(0.2	)%
Eastern Europe, Middle East & Africa		2,210		1,896		16.6	%		11.9	%		5,909		5,531		6.8	%		4.8	%
Asia		2,799		1,833		52.7	%		39.2	%		8,058		5,829		38.2	%		28.0	%
Latin America & Canada		847		746		13.5	%		8.3	%		2,455		2,193		11.9	%		7.7	%
Total PMI	$	8,362	$	6,614		26.4	%		15.9	%	$	23,426	$	20,171		16.1	%		10.1	%

Net revenues of $8.4 billion were up by 26.4%, including favorable currency of $697 million. Excluding currency, net revenues increased by 15.9%, primarily driven by favorable pricing of $564 million across all Regions, primarily in Asia, and favorable volume/mix of $472 million that benefited from a favorable comparison with 2010, particularly in Japan and Ukraine. The favorable volume/mix was driven by Asia, mainly Indonesia, Japan and Korea, and EEMA, and was partly offset by the EU, mainly Portugal and Spain. Volume/mix in Latin America & Canada was flat due to an erosion in Mexico. Excluding currency and acquisitions, PMI’s net revenues increased by 15.7%.

3

OPERATING COMPANIES INCOME

	PMI Operating Companies Income ($ Millions)
	Third-Quarter										Nine Months Year-To-Date
								Excl.										Excl.
	2011		2010		Change			Curr.			2011		2010		Change			Curr.
European Union	$	1,262	$	1,113		13.4	%		4.0	%	$	3,548	$	3,280		8.2	%		1.0	%
Eastern Europe, Middle East & Africa		925		856		8.1	%		11.8	%		2,482		2,412		2.9	%		4.3	%
Asia		1,309		690		89.7	%		74.6	%		3,800		2,259		68.2	%		52.7	%
Latin America & Canada		255		244		4.5	%		4.5	%		774		699		10.7	%		9.3	%
Total PMI	$	3,751	$	2,903		29.2	%		23.1	%	$	10,604	$	8,650		22.6	%		16.1	%

Reported operating companies income was up by 29.2% to $3.8 billion, including favorable currency of $177 million. Excluding currency and acquisitions, operating companies income was up by 23.5%, primarily driven by higher pricing and favorable volume/mix, partly offset by unfavorable costs, partially related to airfreight of product to Japan in response to in-market shortages of competitors’ products.

Adjusted operating companies income grew by 29.8% as shown in the table below and detailed on Schedule 11. Adjusted operating companies income, excluding currency and acquisitions, increased by 23.7%.

PMI Operating Companies Income ($ Millions)

	Third-Quarter									Nine Months Year-To-Date
	2011			2010			Change			2011			2010			Change
Reported OCI	$	3,751		$	2,903			29.2	%	$	10,604		$	8,650			22.6	%
Asset impairment & exit costs		(43	)		(20	)					(60	)		(20	)
Adjusted OCI	$	3,794		$	2,923			29.8	%	$	10,664		$	8,670			23.0	%
Adjusted OCI Margin*		45.4	%		44.2	%		1.2 p.p.			45.5	%		43.0	%		2.5 p.p.

* Margins are calculated as adjusted OCI, divided by net revenues, excluding excise taxes.

Adjusted operating companies income margin, excluding the impact of currency, was up by 3.0 percentage points to 47.2%, as detailed on Schedule 11. Excluding currency and acquisitions, adjusted operating companies income margin was up by 3.1 percentage points to 47.3%.

SHIPMENT VOLUME & MARKET SHARE

PMI Cigarette Shipment Volume by Segment (Million Units)

	Third-Quarter							Nine Months Year-To-Date
	2011		2010		Change			2011		2010		Change
European Union		56,198		58,264		(3.5	)%		161,913		169,617		(4.5	)%
Eastern Europe, Middle East & Africa		79,053		75,228		5.1	%		218,032		217,265		0.4	%
Asia		79,053		70,188		12.6	%		235,187		211,588		11.2	%
Latin America & Canada		25,243		25,532		(1.1	)%		73,512		76,436		(3.8	)%
Total PMI		239,547		229,212		4.5	%		688,644		674,906		2.0	%

4

Excluding acquisitions, PMI’s cigarette shipment volume was up by 4.4% for the quarter, or by 0.5% on a nine-month year-to-date basis, driven by growth from each of PMI’s top ten brands.

In the EU, cigarette shipment volume decreased by 3.5%, predominantly due to lower total markets, mainly in Spain, and lower market share, mostly in Poland. In EEMA, cigarette shipment volume grew by 5.1%, primarily driven by growing total markets in the Middle East, market share gains in North Africa and Turkey, and a favorable comparison in Ukraine due to trade inventory movements in 2010. In Asia, PMI’s cigarette shipment volume increased by 12.6%, fueled by double-digit growth in Indonesia, Japan, benefiting from the timing of shipments in 2010, and Korea. In Latin America & Canada, cigarette shipment volume decreased by 1.1%, mainly due to Mexico, reflecting a lower total market, partly offset by growth in Argentina, Brazil, Canada and Colombia.

Total cigarette shipments of Marlboro of 78.9 billion units were up by 3.9%, driven primarily by growth in EEMA of 10.2%, in particular in the Middle East and North Africa, and in Asia of 11.8%, notably in Indonesia, Japan and Korea. The growth was partly offset by a decline: in the EU of 3.4%, mainly reflecting lower total markets and share, primarily in Poland and Spain, partly offset by growth in France; and in Latin America & Canada of 3.0%, mainly due to a lower total market in Mexico, partly offset by growth in Argentina and Brazil.

Total cigarette shipments of L&M of 23.8 billion units were up by 3.9%, driven by growth in all four Regions. Total cigarette shipments of Bond Street of 12.4 billion units increased by 6.8%, led mainly by growth in Russia and Ukraine. Total cigarette shipments of Philip Morris of 9.8 billion units increased by 1.8%, mainly reflecting growth in Argentina, France and Japan. Total cigarette shipments of Chesterfield of 10.0 billion units were up by 7.0%, driven by growth in the EU, mainly in Portugal. Total cigarette shipments of Parliament of 10.6 billion units were up by 16.2%, fueled by growth in all four Regions. Total cigarette shipments of Lark of 9.7 billion units increased by 44.1%, driven primarily by growth in Japan.

Total shipment volume of other tobacco products (OTP), in cigarette equivalent units, excluding acquisitions, grew by 10.0%, notably in Belgium, France and Germany. Total shipment volume for cigarettes and OTP combined was up by 4.6%, excluding acquisitions.

PMI’s market share performance was stable, or registered growth, in a number of key markets, including Algeria, Argentina, Australia, Austria, Belgium, Canada, France, Germany, Hong Kong, Indonesia, Japan, Korea, Mexico, the Netherlands, Russia, Singapore, Turkey and the United Kingdom.

EUROPEAN UNION REGION (EU)

2011 Third-Quarter Results

In the EU, net revenues increased by 17.2% to $2.5 billion, including favorable currency of $321 million. Excluding currency, net revenues grew by 2.2%, primarily reflecting higher pricing of $95 million, driven by France, Germany and Italy. The favorable pricing variance more than offset the unfavorable volume/mix of $49 million, primarily attributable to the adverse economic environment in the south of Europe, notably Greece, Portugal and Spain, and to a lower total market and share in Poland.

5

Operating companies income increased by 13.4% to $1.3 billion, due predominantly to favorable pricing, and favorable currency of $105 million, partly offset by unfavorable volume/mix. Excluding the favorable impact of currency, operating companies income was up by 4.0%.

Adjusted operating companies income increased by 12.4%, as shown in the table below and detailed on Schedule 11. Adjusted operating companies income, excluding currency and acquisitions, increased by 3.1%.

EU Operating Companies Income ($ Millions)

	Third-Quarter									Nine Months Year-To-Date
	2011			2010			Change			2011			2010			Change
Reported OCI	$	1,262		$	1,113			13.4	%	$	3,548		$	3,280			8.2	%
Asset impairment & exit costs		(11	)		(20	)					(23	)		(20	)
Adjusted OCI	$	1,273		$	1,133			12.4	%	$	3,571		$	3,300			8.2	%
Adjusted OCI Margin*		50.8	%		53.0	%		(2.2) p.p.			51.0	%		49.9	%		1.1 p.p.

* Margins are calculated as adjusted OCI, divided by net revenues, excluding excise taxes.

Excluding the impact of currency, adjusted operating companies income margin was up by 0.5 percentage points to 53.5%, as detailed on Schedule 11.

The total cigarette market in the EU declined by 3.7%, due primarily to the impact of a lower total market: in Greece, reflecting the continuing adverse economic environment; in Spain, following the unfavorable impact of tax-driven price increases in June and December of 2010, the implementation of stricter indoor public smoking bans in January 2011, and continuing adverse economic conditions; and in Poland, reflecting excise-tax driven price increases in October 2010 and May 2011 combined with the implementation of a smoking ban in November 2010. Excluding Spain, the total cigarette market in the EU declined by 2.8%.

PMI’s cigarette shipment volume in the EU declined by 3.5%, due mainly to the aforementioned reasons, partly offset by favorable distributor inventory movements, primarily in Spain. Shipment volume of Marlboro decreased by 3.4%, mainly due to lower total markets, particularly in Spain, and to lower share, primarily in Germany, Italy and Poland, partially offset by higher share in France and Hungary. Shipment volume of L&M was up by 1.5%, driven predominantly by higher share in Germany.

PMI’s market share in the EU was down by 0.7 share points to 38.3% as gains, notably in France, Germany and the Netherlands, were more than offset by declines, mainly in the Czech Republic, Italy, Poland, Portugal and Spain. Marlboro’s share in the EU was down by 0.4 points to 18.0%, reflecting a higher share mainly in the Czech Republic, France, Greece, Hungary and the Netherlands, which was more than offset by lower share in Germany, Italy, Poland, Portugal and Spain. Compared to the second quarter of 2011, Marlboro’s share was down slightly by 0.1 point. L&M’s market share in the EU was up slightly by 0.1 point to 6.5%, primarily driven by gains in Germany, the Netherlands and Poland. Complementing L&M, market share of Chesterfield in the EU was up by 0.3 points to 3.2%.

6

EU Key Market Commentaries

In the Czech Republic, the total cigarette market was down by 2.3%, reflecting the unfavorable impact of excise tax-driven price increases in the first quarter of 2011. PMI’s shipments were down by 9.1%. Market share was down by 3.3 points to 44.5%, principally reflecting continued share declines for lower-margin local brands, Start, Petra and Sparta, down by 3.2 points. This decline was partly offset by a higher share for Marlboro, up by 0.2 points to 7.2%, assisted by the April 2011 launch of Marlboro Core Flavor and Marlboro Gold Touch, and a higher share for Red & White, up by 0.7 points to 13.4%.

In France, the total cigarette market was down by 2.0%. PMI’s shipments were up by 4.0%, and market share was up by 0.4 points to 40.4%, mainly reflecting a higher share for Marlboro and the premium Philip Morris brand, up by 0.2 and 0.5 points to 25.9% and 8.2%, respectively, as well as a higher share for Chesterfield, up by 0.2 points to 3.0%.

In Germany, the total cigarette market was up by 0.3%. PMI’s shipments were up by 1.2% and market share grew by 0.3 points to 35.2%, driven by L&M, up by 1.1 points to 10.3%. Share of Marlboro was down by 0.8 points to 20.3%.

In Italy, the total cigarette market was down by 1.4%, reflecting the unfavorable impact of excise tax-driven price increases in the third quarter of 2010, price increases in July 2011, and a VAT-driven price increase of €0.20 per pack in September 2011. PMI’s shipments were down by 1.0% and market share declined by 1.1 points to 53.0%. While Marlboro’s market share of 22.7% was down by 0.5 points compared to the third quarter of 2010, it was flat compared to the second quarter of 2011.

In Poland, the total cigarette market was down by 5.0%, reflecting the unfavorable impact of excise tax-driven price increases in the fourth quarter of 2010 and second quarter of 2011, as well as the introduction of an indoor public smoking ban in November of 2010. PMI’s shipments were down by 11.3%. PMI’s market share was down by 2.5 points to 35.1%, due mainly to lower share of Marlboro, down by 1.3 points to 9.7%, and low-price Red & White, down by 1.5 points to 5.1%, partially offset by L&M, up by 0.9 points to 16.9%, supported by the launch of L&M Forward in April 2011. Compared to the second quarter of 2011, PMI’s market share was up by 0.2 points.

In Spain, the total cigarette market was down by 10.5%, largely due to the continuing adverse economic environment and the introduction of a total indoor public smoking ban in January 2011. PMI’s shipments were down by 6.9%. PMI’s market share was down by 1.4 points to 31.2%, reflecting lower trade purchases of PMI products in September as a result of the timing of competitive price increases later the same month. By comparison, PMI’s market share in July and August was up by 1.1 points versus the same period in 2010. Share of Marlboro in the quarter of 15.1% was up by 0.5 points compared to the second quarter of 2011.

EASTERN EUROPE, MIDDLE EAST & AFRICA REGION (EEMA)

2011 Third-Quarter Results

In EEMA, net revenues increased by 16.6% to $2.2 billion, including favorable currency of $89 million. Excluding the impact of currency and acquisitions, net revenues increased by 11.2%, primarily due to favorable pricing of $65 million, primarily in the Middle East and Russia, and favorable volume/mix of $147 million.

7

Operating companies income increased by 8.1% to $925 million, despite unfavorable currency of $32 million that was largely due to the appreciation of the Euro, particularly in regard to manufacturing costs. Excluding the impact of currency and acquisitions, operating companies income increased by 13.3%, due primarily to higher pricing and favorable volume/mix, partly offset by higher costs, principally related to business building initiatives in Russia. Adjusted operating companies income increased by 9.9%, as shown in the table below and detailed on Schedule 11. Adjusted operating companies income, excluding currency and acquisitions, increased by 13.8%.

EEMA Operating Companies Income ($ Millions)

	Third-Quarter									Nine Months Year-To-Date
	2011			2010			Change			2011			2010			Change
Reported OCI	$	925		$	856			8.1	%	$	2,482		$	2,412			2.9	%
Asset impairment & exit costs		(16	)		0						(18	)		0
Adjusted OCI	$	941		$	856			9.9	%	$	2,500		$	2,412			3.6	%
Adjusted OCI Margin*		42.6	%		45.1	%		(2.5	) p.p.		42.3	%		43.6	%		(1.3	) p.p.

* Margins are calculated as adjusted OCI, divided by net revenues, excluding excise taxes.

Excluding the impact of currency and acquisitions, adjusted operating companies income margin was up by 1.1 percentage points to 46.2%, as detailed on Schedule 11.

PMI’s cigarette shipment volume in EEMA increased by 5.1%, predominantly due to: the Middle East, primarily Saudi Arabia, mainly reflecting favorable distributor inventory movements; North Africa, mainly Algeria driven by a higher total market and share growth; Turkey, reflecting share growth; and Ukraine, reflecting favorable trade inventory movements. This increase was partly offset by a decline in Russia due to unfavorable distributor inventory movements and a lower total market.

PMI’s cigarette shipment volume of premium brands grew by 10.5% in EEMA, driven by Marlboro and Parliament, up by 10.2% and 15.9%, respectively.

EEMA Key Market Commentaries

In Russia, PMI’s shipment volume decreased by 3.5%. While shipment volume of PMI’s premium portfolio was down by 7.1%, primarily due to a decline in Marlboro of 19.6%, shipment volume of Parliament was up by 0.4%. In the mid-price segment, shipment volume was down by 5.5%, due mainly to Chesterfield, down by 4.1%, and L&M, down by 3.2%. In the low-price segment, shipment volume of Bond Street was up by 3.0%. PMI’s quarter-to-date August market share of 25.8%, as measured by A.C. Nielsen, was up slightly by 0.1 point. Market share for Parliament, in the premium segment, was up slightly by 0.1 point; Marlboro, in the premium segment, was down by 0.2 points; L&M in the mid-price segment was down by 0.4 share points; Chesterfield in the mid-price segment was up by 0.2 share points; and Bond Street in the low-price segment was up by 0.4 share points.

In Turkey, the total cigarette market was up by 5.6%, reflecting a recovery following the steep January 2010 excise tax increase. PMI’s shipment volume increased by 21.6%. PMI’s market share, as measured by A.C. Nielsen, grew by 3.9 points to a record 45.7%, driven by Parliament, Muratti and L&M, up

8

by 1.3, 0.6 and 4.4 share points, respectively, partly offset by declines in Lark and Bond Street, down by 1.6 and 0.7 points, respectively. Market share of Marlboro was flat at 9.5% and up by 0.4 points compared to the second quarter of 2011.

In Ukraine, the total cigarette market grew by an estimated 8.6%, reflecting a favorable comparison with the third quarter of 2010 impacted by trade inventory movements following the excise tax increase of July 2010 and the favorable impact of competitive trade inventory movements in the third quarter of 2011. PMI’s shipment volume increased by 10.2%. While PMI’s market share, as measured by A.C. Nielsen, was down by 2.4 points to 32.4%, largely due to declines in PMI’s medium and low-price segments, share for premium Parliament was up by 0.4 points to 2.8%. Share of Marlboro was flat at 5.6%.

ASIA REGION

2011 Third-Quarter Results

In Asia, net revenues increased strongly by 52.7% to $2.8 billion, including favorable currency of $248 million. Excluding the impact of currency, net revenues increased by 39.2%, reflecting the favorable impact of pricing of $342 million, primarily in Australia, Indonesia, Japan and the Philippines, and favorable volume/mix of $374 million, mainly in Japan, reflecting a weak prior year quarter resulting from the payback of distributor inventories built up in the second quarter of 2010 in anticipation of increased trade and consumer purchases, as well as in Indonesia and Korea. Excluding the impact of currency and acquisitions, net revenues increased by 39.1%.

Operating companies income surged by 89.7% to reach $1.3 billion. Excluding the favorable impact of currency of $104 million, operating companies income increased by 74.6%, driven by strong growth in Australia, Indonesia, Japan, Korea and the Philippines. Excluding the impact of currency and acquisitions, operating companies income increased by 74.3%. Adjusted operating companies income increased by 90.4% as shown in the table below and detailed on Schedule 11. Adjusted operating companies income, excluding currency and acquisitions, increased by 75.1%.

Asia Operating Companies Income ($ Millions)

	Third-Quarter									Nine Months Year-To-Date
	2011			2010			Change			2011			2010			Change
Reported OCI	$	1,309		$	690			89.7	%	$	3,800		$	2,259			68.2	%
Asset impairment & exit costs		(5	)		0						(7	)		0
Adjusted OCI	$	1,314		$	690			90.4	%	$	3,807		$	2,259			68.5	%
Adjusted OCI Margin*		46.9	%		37.6	%		9.3 p.p.			47.2	%		38.8	%		8.4 p.p.

* Margins are calculated as adjusted OCI, divided by net revenues, excluding excise taxes.

Excluding the impact of currency and acquisitions, adjusted operating companies income margin was up by 9.8 percentage points to 47.4%, as detailed on Schedule 11.

PMI’s cigarette shipment volume in Asia increased by 12.6%, predominantly due to growth in Indonesia, Japan and Korea. The growth was partly offset by declines in Pakistan of 18.9%, due to the

9

continued growth of illicit products, and in the Philippines of 3.0%, reflecting the unfavorable impact of excise tax-driven price increases in January 2011 and extreme weather conditions.

Shipment volume of Marlboro was up by 11.8%, driven mainly by growth in Indonesia, Japan, Korea and Vietnam.

Asia Key Market Commentaries

In Indonesia, the total cigarette market was up by 14.5%, driven mainly by growth in the low-price segment and moderate price increases compared to 2010. PMI’s shipment volume increased by 22.5%, with all key brand families recording growth. Market share was up by 2.0 points to a record 31.2%, driven by growth from premium Sampoerna A and low-price U Mild, Vegas Mild and Trend Mild. Although Marlboro’s market share was down by 0.2 points to 4.2%, shipments grew by 8.9% and share of the “white” cigarettes segment increased by 3.6 points to 65.4%.

In Japan, the total cigarette market decreased by 29.5%, reflecting: an unfavorable comparison with the third quarter of 2010 which witnessed strong trade and consumer demand ahead of the October 1, 2010 tax-driven price increases; the subsequent unfavorable impact of these price increases; and the underlying market decline. PMI’s shipment volume was up by 47.1%, driven mainly by a favorable comparison to the third quarter of 2010 which witnessed the payback of distributor inventories built up in the second quarter of 2010 in anticipation of the aforementioned tax-driven price increases, as well as by increased trade purchases compensating for in-market shortages of competitors’ products in July 2011. Market share of 27.9% was up by 3.9 points, reflecting growth of Marlboro, Lark, the Philip Morris brand and Virginia S. by 1.0, 2.3, 0.2 and 0.3 points, to 12.0%, 8.7%, 2.5% and 2.1%, respectively.

In Korea, the total cigarette market declined by 0.5%. PMI’s shipment volume increased by 22.4%, driven by market share increases. PMI’s market share reached a record 21.1%, up by 4.1 points, driven by Marlboro and Parliament, up by 2.5 and 1.4 points to 9.4% and 7.1%, respectively.

In the Philippines, the total market declined by 1.8%, reflecting the impact of PMFTC Inc.’s excise-tax driven price increase of its key brand variants in January 2011 and extreme weather conditions. PMI’s shipment volume was down by 3.0%. PMI’s market share was down by 1.2 points to 93.4%. Share of Marlboro was down by 0.7 points to 21.1%.

LATIN AMERICA & CANADA REGION

2011 Third-Quarter Results

In Latin America & Canada, net revenues increased by 13.5% to $847 million, including favorable currency of $39 million. Excluding the impact of currency, net revenues increased by 8.3%, reflecting favorable pricing of $62 million, primarily in Argentina, Brazil, Canada and Mexico. Volume/mix was flat.

Operating companies income increased by 4.5% to $255 million, primarily reflecting favorable pricing. Adjusted operating companies income grew by 9.0% as shown in the table below and detailed on Schedule 11, and by the same percentage excluding currency.

10

Latin America & Canada Operating Companies Income ($ Millions)

	Third-Quarter									Nine Months Year-To-Date
	2011			2010			Change			2011			2010			Change
Reported OCI	$	255		$	244			4.5	%	$	774		$	699			10.7	%
Asset impairment & exit costs		(11	)		0						(12	)		0
Adjusted OCI	$	266		$	244			9.0	%	$	786		$	699			12.4	%
Adjusted OCI Margin*		31.4	%		32.7	%		(1.3) p.p.			32.0	%		31.9	%		0.1 p.p.

* Margins are calculated as adjusted OCI, divided by net revenues, excluding excise taxes.

Excluding the impact of currency, adjusted operating companies income margin increased by 0.2 percentage points to 32.9%, as detailed on Schedule 11.

PMI’s cigarette shipment volume in Latin America & Canada decreased by 1.1%, due mainly to Mexico, partly offset by increases in Argentina, Brazil, Canada and Colombia. Shipment volume of Marlboro decreased by 3.0% due to Mexico.

Latin America & Canada Key Market Commentaries

In Argentina, the total cigarette market grew by 3.2%, reflecting growth in the economy. PMI’s cigarette shipment volume increased by 4.0%. PMI’s market share was up by 0.5 points to 74.3%, reflecting growth of Marlboro, up by 0.7 points to 24.2%, and of the mid-price Philip Morris brand, up by 0.2 share points to 37.8%. Share of low-price Next was down by 0.2 points to 3.5%.

In Canada, the total tax-paid cigarette market was up by 1.3%, due mainly to a favorable comparison with the third quarter of 2010, which included the payback of trade inventory movements in June 2010 in anticipation of the harmonized sales tax implementation in the provinces of Ontario and British Columbia. PMI’s cigarette shipment volume increased by 5.2%. PMI’s market share grew by 1.3 points to 34.3%, with premium brand Belmont up by 0.2 points to 1.9% and low-price brand Next up by 2.7 points to 7.0%, partly offset by mid-price Number 7 and Canadian Classics, and low-price Accord, down by 0.3, 0.3 and 0.7 share points, to 4.1%, 8.8% and 3.5%, respectively.

In Mexico, the total cigarette market was down by 18.0%, primarily due to the significant January 1, 2011, excise tax increase which resulted in a 26.7% increase in the retail price of Marlboro and a surge in the availability of illicit products. Although PMI’s cigarette shipment volume decreased by 15.1%, market share grew by 2.6 points to 73.2%, led by Marlboro, up by 3.1 share points to a quarterly record of 52.8%, and Benson & Hedges, up by 0.5 points to 6.1%. Market share of low-price Delicados, the second best-selling brand in the market, declined by 0.7 points to 11.1%.

Philip Morris International Inc. Profile

Philip Morris International Inc. (PMI) is the leading international tobacco company, with seven of the world’s top 15 international brands, including Marlboro, the number one cigarette brand worldwide. PMI’s products are sold in approximately 180 countries. In 2010, the company held an estimated 16.0% share of the total international cigarette market outside of the U.S., or 27.6% excluding the People’s Republic of China and the U.S. For more information, see www.pmi.com.

11

Forward-Looking and Cautionary Statements

This press release contains projections of future results and other forward-looking statements that involve a number of risks and uncertainties and are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. The following important factors could cause actual results and outcomes to differ materially from those contained in such forward-looking statements.

Philip Morris International Inc. and its tobacco subsidiaries (PMI) are subject to intense price competition; changes in consumer preferences and demand for their products; fluctuations in levels of customer inventories; increases in raw material costs; the effects of global economic developments and individual country economic and market conditions; unfavorable currency movements and changes to income tax laws. Their results are dependent upon their continued ability to promote brand equity successfully; to anticipate and respond to new consumer trends; to develop new products and markets and to broaden brand portfolios in order to compete effectively; to be able to protect and enhance margins through price increases; and to improve productivity.

PMI is also subject to legislation and governmental regulation, including actual and potential excise tax increases; discriminatory excise tax structures; increasing marketing and regulatory restrictions; the effects of price increases related to excise tax increases on consumption rates and consumer preferences within price segments; health concerns relating to the use of tobacco products and exposure to environmental tobacco smoke; privately imposed smoking restrictions; and governmental investigations.

PMI is subject to litigation, including risks associated with adverse jury and judicial determinations, and courts reaching conclusions at variance with PMI’s understanding of applicable law.

PMI is further subject to other risks detailed from time to time in its publicly filed documents, including the Form 10-Q for the quarter ended June 30, 2011. PMI cautions that the foregoing list of important factors is not complete and does not undertake to update any forward-looking statements that it may make, except in the normal course of its public disclosure obligations.

###

12

Schedule 1

PHILIP MORRIS INTERNATIONAL INC.

and Subsidiaries

Condensed Statements of Earnings

For the Quarters Ended September 30,

($ in millions, except per share data)

(Unaudited)

	2011		2010		% Change
Net revenues	$	20,706	$	16,936		22.3	%
Cost of sales		2,847		2,290		24.3	%
Excise taxes on products (1)		12,344		10,322		19.6	%
Gross profit		5,515		4,324		27.5	%
Marketing, administration and research costs		1,721		1,401
Asset impairment and exit costs		43		20
Operating companies income		3,751		2,903		29.2	%
Amortization of intangibles		25		22
General corporate expenses		49		45
Operating income		3,677		2,836		29.7	%
Interest expense, net		192		214
Earnings before income taxes		3,485		2,622		32.9	%
Provision for income taxes		1,024		730		40.3	%
Net earnings		2,461		1,892		30.1	%
Net earnings attributable to noncontrolling interests		84		70
Net earnings attributable to PMI	$	2,377	$	1,822		30.5	%
Per share data:(2)
Basic earnings per share	$	1.35	$	0.99		36.4	%
Diluted earnings per share	$	1.35	$	0.99		36.4	%

(1) The segment detail of excise taxes on products sold for the quarters ended September 30, 2011 and 2010 is shown on

Schedule 2.

(2) Net earnings and weighted-average shares used in the basic and diluted earnings per share computations for the quarters ended September 30, 2011 and 2010 are shown on Schedule 4, Footnote 1.

Schedule 2

PHILIP MORRIS INTERNATIONAL INC.

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended September 30,

($ in millions)

(Unaudited)

		Net Revenues excluding Excise Taxes
		European Union			EEMA			Asia			Latin America & Canada			Total
2011	Net Revenues (1)	$	8,155		$	4,921		$	5,143		$	2,487		$	20,706
	Excise Taxes on Products		(5,649	)		(2,711	)		(2,344	)		(1,640	)		(12,344	)
	Net Revenues excluding Excise Taxes		2,506			2,210			2,799			847			8,362
2010	Net Revenues	$	7,045		$	4,184		$	3,629		$	2,078		$	16,936
	Excise Taxes on Products		(4,906	)		(2,288	)		(1,796	)		(1,332	)		(10,322	)
	Net Revenues excluding Excise Taxes		2,139			1,896			1,833			746			6,614
Variance	Currency		321			89			248			39			697
	Acquisitions		—			13			2			—			15
	Operations		46			212			716			62			1,036
	Variance Total		367			314			966			101			1,748
	Variance Total (%)		17.2	%		16.6	%		52.7	%		13.5	%		26.4	%
	Variance excluding Currency		46			225			718			62			1,051
	Variance excluding Currency (%)		2.2	%		11.9	%		39.2	%		8.3	%		15.9	%
	Variance excluding Currency & Acquisitions		46			212			716			62			1,036
	Variance excluding Currency & Acquisitions (%)		2.2	%		11.2	%		39.1	%		8.3	%		15.7	%
(1)       2011 Currency increased net revenues as follows:
	European Union	$	1,061
	EEMA		108
	Asia		467
	Latin America & Canada		109
		$	1,745

Schedule 3

PHILIP MORRIS INTERNATIONAL INC.

and Subsidiaries

Selected Financial Data by Business Segment

For the Quarters Ended September 30,

($ in millions)

(Unaudited)

	Operating Companies Income
	European Union			EEMA			Asia			Latin America & Canada			Total
2011	$	1,262		$	925		$	1,309		$	255		$	3,751
2010		1,113			856			690			244			2,903
% Change		13.4	%		8.1	%		89.7	%		4.5	%		29.2	%
Reconciliation:
For the quarter ended September 30, 2010	$	1,113		$	856		$	690		$	244		$	2,903
2010 Asset impairment and exit costs		20			—			—			—			20
2011 Asset impairment and exit costs		(11	)		(16	)		(5	)		(11	)		(43	)
Acquired businesses		—			(1	)		2			—			1
Currency		105			(32	)		104			—			177
Operations		35			118			518			22			693
For the quarter ended September 30, 2011	$	1,262		$	925		$	1,309		$	255		$	3,751

Schedule 4

PHILIP MORRIS INTERNATIONAL INC.

and Subsidiaries

Diluted Earnings Per Share

For the Quarters Ended September 30,

($ in millions, except per share data)

(Unaudited)

	Diluted
	E.P.S.
2011 Diluted Earnings Per Share	$	1.35	(1)
2010 Diluted Earnings Per Share	$	0.99	(1)
Change	$	0.36
% Change		36.4	%
Reconciliation:
2010 Diluted Earnings Per Share	$	0.99	(1)
Special Items:
2011 Asset impairment and exit costs		(0.02	)
2011 Tax items		—
2010 Asset impairment and exit costs		0.01
2010 Tax items		—
Currency		0.04
Interest		0.01
Change in tax rate		(0.03	)
Impact of lower shares outstanding and share-based payments		0.06
Operations		0.29
2011 Diluted Earnings Per Share	$	1.35	(1)

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

	Q3 2011		Q3 2010
Net earnings attributable to PMI	$	2,377	$	1,822
Less distributed and undistributed earnings attributable to share-based payment awards		14		8
Net earnings for basic and diluted EPS	$	2,363	$	1,814
Weighted-average shares for basic EPS		1,749		1,828
Plus incremental shares from assumed conversions:
Stock Options		—		2
Weighted-average shares for diluted EPS		1,749		1,830

Schedule 5

PHILIP MORRIS INTERNATIONAL INC.

and Subsidiaries

Condensed Statements of Earnings

For the Nine Months Ended September 30,

($ in millions, except per share data)

(Unaudited)

	2011		2010		% Change
Net revenues	$	57,470	$	49,906		15.2	%
Cost of sales		7,986		7,212		10.7	%
Excise taxes on products (1)		34,044		29,735		14.5	%
Gross profit		15,440		12,959		19.1	%
Marketing, administration and research costs		4,776		4,289
Asset impairment and exit costs		60		20
Operating companies income		10,604		8,650		22.6	%
Amortization of intangibles		73		65
General corporate expenses		135		128
Operating income		10,396		8,457		22.9	%
Interest expense, net		613		660
Earnings before income taxes		9,783		7,797		25.5	%
Provision for income taxes		2,850		2,109		35.1	%
Net earnings		6,933		5,688		21.9	%
Net earnings attributable to noncontrolling interests		228		181
Net earnings attributable to PMI	$	6,705	$	5,507		21.8	%
Per share data:(2)
Basic earnings per share	$	3.76	$	2.96		27.0	%
Diluted earnings per share	$	3.76	$	2.96		27.0	%

(1) The segment detail of excise taxes on products sold for the nine months ended September 30, 2011 and 2010 is shown on Schedule 6.

(2) Net earnings and weighted-average shares used in the basic and diluted earnings per share computations for the nine months ended September 30, 2011 and 2010 are shown on Schedule 8, Footnote 1.

Schedule 6

PHILIP MORRIS INTERNATIONAL INC.

and Subsidiaries

Selected Financial Data by Business Segment

For the Nine Months Ended September 30,

($ in millions)

(Unaudited)

		Net Revenues excluding Excise Taxes
		European Union			EEMA			Asia			Latin America & Canada			Total
2011	Net Revenues (1)	$	22,650		$	13,195		$	14,577		$	7,048		$	57,470
	Excise Taxes on Products		(15,646	)		(7,286	)		(6,519	)		(4,593	)		(34,044	)
	Net Revenues excluding Excise Taxes		7,004			5,909			8,058			2,455			23,426
2010	Net Revenues	$	21,053		$	11,665		$	11,094		$	6,094		$	49,906
	Excise Taxes on Products		(14,435	)		(6,134	)		(5,265	)		(3,901	)		(29,735	)
	Net Revenues excluding Excise Taxes		6,618			5,531			5,829			2,193			20,171
Variance	Currency		402			115			598			93			1,208
	Acquisitions		—			13			110			—			123
	Operations		(16	)		250			1,521			169			1,924
	Variance Total		386			378			2,229			262			3,255
	Variance Total (%)		5.8	%		6.8	%		38.2	%		11.9	%		16.1	%
	Variance excluding Currency		(16	)		263			1,631			169			2,047
	Variance excluding Currency (%)		(0.2	)%		4.8	%		28.0	%		7.7	%		10.1	%
	Variance excluding Currency & Acquisitions		(16	)		250			1,521			169			1,924
	Variance excluding Currency & Acquisitions (%)		(0.2	)%		4.5	%		26.1	%		7.7	%		9.5	%
(1)       2011 Currency increased net revenues as follows:
	European Union	$	1,342
	EEMA		116
	Asia		1,070
	Latin America & Canada		239
		$	2,767

Schedule 7

PHILIP MORRIS INTERNATIONAL INC.

and Subsidiaries

Selected Financial Data by Business Segment

For the Nine Months Ended September 30,

($ in millions)

(Unaudited)

	Operating Companies Income
	European Union			EEMA			Asia			Latin America & Canada			Total
2011	$	3,548		$	2,482		$	3,800		$	774		$	10,604
2010		3,280			2,412			2,259			699			8,650
% Change		8.2	%		2.9	%		68.2	%		10.7	%		22.6	%
Reconciliation:
For the nine months ended September 30, 2010	$	3,280		$	2,412		$	2,259		$	699		$	8,650
2010 Asset impairment and exit costs		20			—			—			—			20
2011 Asset impairment and exit costs		(23	)		(18	)		(7	)		(12	)		(60	)
Acquired businesses		(1	)		(1	)		26			—			24
Currency		236			(33	)		351			10			564
Operations		36			122			1,171			77			1,406
For the nine months ended September 30, 2011	$	3,548		$	2,482		$	3,800		$	774		$	10,604

Schedule 8

PHILIP MORRIS INTERNATIONAL INC.

and Subsidiaries

Diluted Earnings Per Share

For the Nine Months Ended September 30,

($ in millions, except per share data)

(Unaudited)

	Diluted
	E.P.S.
2011 Diluted Earnings Per Share	$	3.76	(1)
2010 Diluted Earnings Per Share	$	2.96	(1)
Change	$	0.80
% Change		27.0	%
Reconciliation:
2010 Diluted Earnings Per Share	$	2.96	(1)
Special Items:
2011 Asset impairment and exit costs		(0.03	)
2011 Tax items		0.02
2010 Asset impairment and exit costs		0.01
2010 Tax items		(0.07	)
Currency		0.19
Interest		0.02
Change in tax rate		(0.04	)
Impact of lower shares outstanding and share-based payments		0.17
Operations		0.53
2011 Diluted Earnings per Share	$	3.76	(1)

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

	YTD September 2011		YTD September 2010
Net earnings attributable to PMI	$	6,705	$	5,507
Less distributed and undistributed earnings attributable to share-based payment awards		38		25
Net earnings for basic and diluted EPS	$	6,667	$	5,482
Weighted-average shares for basic EPS		1,771		1,849
Plus incremental shares from assumed conversions:
Stock Options		—		3
Weighted-average shares for diluted EPS		1,771		1,852

Schedule 9

PHILIP MORRIS INTERNATIONAL INC.

and Subsidiaries

Condensed Balance Sheets

($ in millions, except ratios)

(Unaudited)

	September 30,			December 31,
	2011			2010
Assets
Cash and cash equivalents	$	3,391		$	1,703
All other current assets		11,699			12,053
Property, plant and equipment, net		6,411			6,499
Goodwill		10,087			10,161
Other intangible assets, net		3,774			3,873
Other assets		858			761
Total assets	$	36,220		$	35,050
Liabilities and Stockholders’ Equity
Short-term borrowings	$	2,563		$	1,747
Current portion of long-term debt		2,326			1,385
All other current liabilities		11,161			9,672
Long-term debt		12,870			13,370
Deferred income taxes		1,983			2,027
Other long-term liabilities		1,663			1,728
Total liabilities		32,566			29,929
Redeemable noncontrolling interest		1,216			1,188
Total PMI stockholders’ equity		2,130			3,506
Noncontrolling interests		308			427
Total stockholders’ equity		2,438			3,933
Total liabilities and stockholders’ equity	$	36,220		$	35,050
Total debt	$	17,759		$	16,502
Total debt to EBITDA		1.26	(1)		1.36	(1)
Net debt to EBITDA		1.02	(1)		1.22	(1)

⁽¹⁾  For the calculation of Total Debt to EBITDA and Net Debt to EBITDA ratios, refer to Schedule 18.

Schedule 10

PHILIP MORRIS INTERNATIONAL INC.

and Subsidiaries

Reconciliation of Non-GAAP Measures

Adjustments for the Impact of Currency and Acquisitions

For the Quarters Ended September 30,

($ in millions)

(Unaudited)

2011																	2010						% Change in Reported Net Revenues excluding Excise Taxes
Reported Net Revenues		Less Excise Taxes		Reported Net Revenues excluding Excise Taxes		Less Currency			Reported Net Revenues excluding Excise Taxes & Currency		Less Acquisi- tions			Reported Net Revenues excluding Excise Taxes, Currency & Acquisitions			Reported Net Revenues		Less Excise Taxes		Reported Net Revenues excluding Excise Taxes		Reported			Reported excluding Currency			Reported excluding Currency & Acquisitions
$	8,155	$	5,649	$	2,506	$	321		$	2,185	$	—		$	2,185	European Union	$	7,045	$	4,906	$	2,139		17.2	%		2.2	%		2.2	%
	4,921		2,711		2,210		89			2,121		13			2,108	EEMA		4,184		2,288		1,896		16.6	%		11.9	%		11.2	%
	5,143		2,344		2,799		248			2,551		2			2,549	Asia		3,629		1,796		1,833		52.7	%		39.2	%		39.1	%
	2,487		1,640		847		39			808		—			808	Latin America & Canada		2,078		1,332		746		13.5	%		8.3	%		8.3	%
$	20,706	$	12,344	$	8,362	$	697		$	7,665	$	15		$	7,650	PMI Total	$	16,936	$	10,322	$	6,614		26.4	%		15.9	%		15.7	%
2011																	2010						% Change in Reported Operating Companies Income
Reported Operating Companies Income						Less Currency			Reported Operating Companies Income excluding Currency		Less Acquisi- tions			Reported Operating Companies Income excluding Currency & Acquisitions							Reported Operating Companies Income		Reported			Reported excluding Currency			Reported excluding Currency & Acquisitions
$	1,262					$	105		$	1,157	$	—		$	1,157	European Union					$	1,113		13.4	%		4.0	%		4.0	%
	925						(32	)		957		(13	)		970	EEMA						856		8.1	%		11.8	%		13.3	%
	1,309						104			1,205		2			1,203	Asia						690		89.7	%		74.6	%		74.3	%
	255						—			255		—			255	Latin America & Canada						244		4.5	%		4.5	%		4.5	%
$	3,751					$	177		$	3,574	$	(11	)	$	3,585	PMI Total					$	2,903		29.2	%		23.1	%		23.5	%

Schedule 11

PHILIP MORRIS INTERNATIONAL INC.

and Subsidiaries

Reconciliation of Non-GAAP Measures

Reconciliation of Reported Operating Companies Income to Adjusted Operating Companies Income &

Reconciliation of Adjusted Operating Companies Income Margin, excluding Currency and Acquisitions

For the Quarters Ended September 30,

($ in millions)

(Unaudited)

2011																		2010							% Change in Adjusted Operating Companies Income
Reported Operating Companies Income		Less Asset Impairment & Exit Costs			Adjusted Operating Companies Income		Less Currency			Adjusted Operating Companies Income excluding Currency		Less Acquisitions			Adjusted Operating Companies Income excluding Currency & Acquisitions			Reported Operating Companies Income		Less Asset Impairment & Exit Costs			Adjusted Operating Companies Income		Adjusted		Adjusted excluding Currency		Adjusted excluding Currency & Acquisitions
$	1,262	$	(11	)	$	1,273	$	105		$	1,168	$	—		$	1,168	European Union	$	1,113	$	(20	)	$	1,133		12.4%		3.1%		3.1%
	925		(16	)		941		(32	)		973		(1	)		974	EEMA		856		—			856		9.9%		13.7%		13.8%
	1,309		(5	)		1,314		104			1,210		2			1,208	Asia		690		—			690		90.4%		75.4%		75.1%
	255		(11	)		266		—			266		—			266	Latin America & Canada		244		—			244		9.0%		9.0%		9.0%
$	3,751	$	(43	)	$	3,794	$	177		$	3,617	$	1		$	3,616	PMI Total	$	2,903	$	(20	)	$	2,923		29.8%		23.7%		23.7%
2011																		2010							% Points Change
Adjusted Operating Companies Income excluding Currency		Net Revenues excluding Excise Taxes & Currency(1)			Adjusted Operating Companies Income Margin excluding Currency					Adjusted Operating Companies Income excluding Currency & Acquisitions		Net  Revenues excluding Excise Taxes, Currency & Acquisitions(1)			Adjusted Operating Companies Income Margin excluding Currency & Acquisitions			Adjusted Operating Companies Income		Net Revenues excluding Excise Taxes(1)			Adjusted Operating Companies Income Margin				Adjusted Operating Companies Income Margin excluding Currency		Adjusted Operating Companies Income Margin excluding Currency & Acquisitions
$	1,168	$	2,185			53.5%				$	1,168	$	2,185			53.5%	European Union	$	1,133	$	2,139			53.0%				0.5		0.5
	973		2,121			45.9%					974		2,108			46.2%	EEMA		856		1,896			45.1%				0.8		1.1
	1,210		2,551			47.4%					1,208		2,549			47.4%	Asia		690		1,833			37.6%				9.8		9.8
	266		808			32.9%					266		808			32.9%	Latin America & Canada		244		746			32.7%				0.2		0.2
$	3,617	$	7,665			47.2%				$	3,616	$	7,650			47.3%	PMI Total	$	2,923	$	6,614			44.2%				3.0		3.1

⁽¹⁾  For the calculation of net revenues excluding excise taxes, currency and acquisitions, refer to Schedule 10.

Schedule 12

PHILIP MORRIS INTERNATIONAL INC.

and Subsidiaries

Reconciliation of Non-GAAP Measures

Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS and Adjusted Diluted EPS, excluding Currency

For the Quarters Ended September 30,

(Unaudited)

	2011		2010		% Change
Reported Diluted EPS	$	1.35	$	0.99		36.4	%
Adjustments:
Asset impairment and exit costs		0.02		0.01
Tax items		—		—
Adjusted Diluted EPS	$	1.37	$	1.00		37.0	%
Less:
Currency impact		0.04
Adjusted Diluted EPS, excluding Currency	$	1.33	$	1.00		33.0	%

Schedule 13

PHILIP MORRIS INTERNATIONAL INC.

and Subsidiaries

Reconciliation of Non-GAAP Measures

Reconciliation of Reported Diluted EPS to Reported Diluted EPS, excluding Currency

For the Quarters Ended September 30,

(Unaudited)

	2011		2010		% Change
Reported Diluted EPS	$	1.35	$	0.99		36.4	%
Less:
Currency impact		0.04
Reported Diluted EPS, excluding Currency	$	1.31	$	0.99		32.3	%

Schedule 14

PHILIP MORRIS INTERNATIONAL INC.

and Subsidiaries

Reconciliation of Non-GAAP Measures

Adjustments for the Impact of Currency and Acquisitions

For the Nine Months Ended September 30,

($ in millions)

(Unaudited)

2011																	2010						% Change in Reported Net Revenues excluding Excise Taxes
Reported Net Revenues		Less Excise Taxes		Reported  Net Revenues excluding Excise  Taxes		Less Currency			Reported  Net Revenues excluding Excise  Taxes & Currency		Less Acquisi- tions			Reported  Net Revenues excluding Excise  Taxes, Currency & Acquisitions			Reported Net Revenues		Less Excise Taxes		Reported  Net Revenues excluding Excise  Taxes		Reported			Reported excluding Currency			Reported excluding Currency & Acquisitions
$	22,650	$	15,646	$	7,004	$	402		$	6,602	$	—		$	6,602	European Union	$	21,053	$	14,435	$	6,618		5.8	%		(0.2	)%		(0.2	)%
	13,195		7,286		5,909		115			5,794		13			5,781	EEMA		11,665		6,134		5,531		6.8	%		4.8	%		4.5	%
	14,577		6,519		8,058		598			7,460		110	(1)		7,350	Asia		11,094		5,265		5,829		38.2	%		28.0	%		26.1	%
	7,048		4,593		2,455		93			2,362		—			2,362	Latin America & Canada		6,094		3,901		2,193		11.9	%		7.7	%		7.7	%
$	57,470	$	34,044	$	23,426	$	1,208		$	22,218	$	123		$	22,095	PMI Total	$	49,906	$	29,735	$	20,171		16.1	%		10.1	%		9.5	%
2011																	2010						% Change in Reported Operating Companies Income
Reported Operating Companies Income						Less Currency			Reported Operating Companies Income excluding Currency		Less Acquisi- tions			Reported Operating Companies Income excluding Currency & Acquisitions							Reported Operating Companies Income		Reported			Reported excluding Currency			Reported excluding Currency & Acquisitions
$	3,548					$	236		$	3,312	$	(1	)	$	3,313	European Union					$	3,280		8.2	%		1.0	%		1.0	%
	2,482						(33	)		2,515		(13	)		2,528	EEMA						2,412		2.9	%		4.3	%		4.8	%
	3,800						351			3,449		26	(2)		3,423	Asia						2,259		68.2	%		52.7	%		51.5	%
	774						10			764		—			764	Latin America & Canada						699		10.7	%		9.3	%		9.3	%
$	10,604					$	564		$	10,040	$	12		$	10,028	PMI Total					$	8,650		22.6	%		16.1	%		15.9	%

⁽¹⁾  Includes the business combination in the Philippines ($ 105).

⁽²⁾  Includes the business combination in the Philippines ($ 23).

Schedule 15

PHILIP MORRIS INTERNATIONAL INC.

and Subsidiaries

Reconciliation of Non-GAAP Measures

Reconciliation of Reported Operating Companies Income to Adjusted Operating Companies Income &

Reconciliation of Adjusted Operating Companies Income Margin, excluding Currency and Acquisitions

For the Nine Months Ended September 30,

($ in millions)

(Unaudited)

2011																		2010							% Change in Adjusted Operating Companies Income
Reported Operating Companies Income		Less Asset Impairment & Exit Costs			Adjusted Operating Companies Income		Less Currency			Adjusted Operating Companies Income excluding Currency		Less Acquisitions			Adjusted Operating Companies Income excluding Currency & Acquisitions			Reported Operating Companies Income		Less Asset Impairment & Exit Costs			Adjusted Operating Companies Income		Adjusted		Adjusted excluding Currency		Adjusted excluding Currency & Acquisitions
$	3,548	$	(23	)	$	3,571	$	236		$	3,335	$	(1	)	$	3,336	European Union	$	3,280	$	(20	)	$	3,300		8.2%		1.1%		1.1%
	2,482		(18	)		2,500		(33	)		2,533		(1	)		2,534	EEMA		2,412		—			2,412		3.6%		5.0%		5.1%
	3,800		(7	)		3,807		351			3,456		26	(1)		3,430	Asia		2,259		—			2,259		68.5%		53.0%		51.8%
	774		(12	)		786		10			776		—			776	Latin America & Canada		699		—			699		12.4%		11.0%		11.0%
$	10,604	$	(60	)	$	10,664	$	564		$	10,100	$	24		$	10,076	PMI Total	$	8,650	$	(20	)	$	8,670		23.0%		16.5%		16.2%
2011																		2010							% Points Change
Adjusted Operating Companies Income excluding Currency		Net Revenues excluding Excise Taxes & Currency(2)			Adjusted Operating Companies Income Margin excluding Currency					Adjusted Operating Companies Income excluding Currency & Acquisitions		Net Revenues excluding Excise Taxes, Currency & Acquisitions(2)			Adjusted Operating Companies Income Margin excluding Currency & Acquisitions			Adjusted Operating Companies Income		Net Revenues excluding Excise Taxes(2)			Adjusted Operating Companies Income Margin				Adjusted Operating Companies Income Margin excluding Currency		Adjusted Operating Companies Income Margin excluding Currency & Acquisitions
$	3,335	$	6,602			50.5%				$	3,336	$	6,602			50.5%	European Union	$	3,300	$	6,618			49.9%				0.6		0.6
	2,533		5,794			43.7%					2,534		5,781			43.8%	EEMA		2,412		5,531			43.6%				0.1		0.2
	3,456		7,460			46.3%					3,430		7,350			46.7%	Asia		2,259		5,829			38.8%				7.5		7.9
	776		2,362			32.9%					776		2,362			32.9%	Latin America & Canada		699		2,193			31.9%				1.0		1.0
$	10,100	$	22,218			45.5%				$	10,076	$	22,095			45.6%	PMI Total	$	8,670	$	20,171			43.0%				2.5		2.6

⁽¹⁾  Includes the business combination in the Philippines ($ 23).

⁽²⁾  For the calculation of net revenues excluding excise taxes, currency and acquisitions, refer to Schedule 14.

Schedule 16

PHILIP MORRIS INTERNATIONAL INC.

and Subsidiaries

Reconciliation of Non-GAAP Measures

Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS and Adjusted Diluted EPS, excluding Currency

For the Nine Months Ended September 30,

(Unaudited)

	2011			2010			% Change
Reported Diluted EPS	$	3.76		$	2.96			27.0	%
Adjustments:
Asset impairment and exit costs		0.03			0.01
Tax items		(0.02	)		(0.07	)
Adjusted Diluted EPS	$	3.77		$	2.90			30.0	%
Less:
Currency impact		0.19
Adjusted Diluted EPS, excluding Currency	$	3.58		$	2.90			23.4	%

Schedule 17

PHILIP MORRIS INTERNATIONAL INC.

and Subsidiaries

Reconciliation of Non-GAAP Measures

Reconciliation of Reported Diluted EPS to Reported Diluted EPS, excluding Currency

For the Nine Months Ended September 30,

(Unaudited)

	2011		2010		% Change
Reported Diluted EPS	$	3.76	$	2.96		27.0	%
Less:
Currency impact		0.19
Reported Diluted EPS, excluding Currency	$	3.57	$	2.96		20.6	%

Schedule 18

PHILIP MORRIS INTERNATIONAL INC.

and Subsidiaries

Reconciliation of Non-GAAP Measures

Calculation of Total Debt to EBITDA and Net Debt to EBITDA Ratios

($ in millions, except ratios)

(Unaudited)

	For the Year Ended						For the Year Ended
	September 30,						December 31,
	2011						2010
	October ~ December		January ~ September		12 months
	2010		2011		rolling
Earnings before income taxes	$	2,527	$	9,783	$	12,310	$	10,324
Interest expense, net		216		613		829		876
Depreciation and amortization		255		743		998		932
EBITDA	$	2,998	$	11,139	$	14,137	$	12,132
					September 30,		December 31,
					2011		2010
Short-term borrowings					$	2,563	$	1,747
Current portion of long-term debt						2,326		1,385
Long-term debt						12,870		13,370
Total Debt					$	17,759	$	16,502
Less: Cash and cash equivalents						3,391		1,703
Net Debt					$	14,368	$	14,799
Ratios
Total Debt to EBITDA						1.26		1.36
Net Debt to EBITDA						1.02		1.22

Schedule 19

PHILIP MORRIS INTERNATIONAL INC.

and Subsidiaries

Reconciliation of Non-GAAP Measures

Reconciliation of Operating Cash Flow to Free Cash Flow and Free Cash Flow, excluding Currency

Reconciliation of Operating Cash Flow to Operating Cash Flow, excluding Currency

For the Quarters and Nine Months Ended September 30,

($ in millions)

(Unaudited)

	For the Quarters Ended							For the Nine Months Ended
	September 30,							September 30,
	2011		2010		% Change			2011		2010		% Change
Net cash provided by operating activities(a)	$	3,053	$	2,417		26.3	%	$	9,568	$	7,856		21.8	%
Less:
Capital expenditures		223		164					568		483
Free cash flow	$	2,830	$	2,253		25.6	%	$	9,000	$	7,373		22.1	%
Less:
Currency impact		214							478
Free cash flow, excluding currency	$	2,616	$	2,253		16.1	%	$	8,522	$	7,373		15.6	%
	2011		2010		% Change			2011		2010		% Change
Net cash provided by operating activities(a)	$	3,053	$	2,417		26.3	%	$	9,568	$	7,856		21.8	%
Less:
Currency impact		236							515
Net cash provided by operating activities, excluding currency	$	2,817	$	2,417		16.5	%	$	9,053	$	7,856		15.2	%

(a) Operating cash flow.

Schedule 20

PHILIP MORRIS INTERNATIONAL INC.

and Subsidiaries

Reconciliation of Non-GAAP Measures

Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS

For the Year Ended December 31,

(Unaudited)

	2010
Reported Diluted EPS	$	3.92
Adjustments:
Tax items		(0.07	)
Asset impairment and exit costs		0.02
Adjusted Diluted EPS	$	3.87

EX-99.2

Exhibit 99.2

Philip Morris International Inc.

2011 Third-Quarter Results Conference Call

October 20, 2011

NICK ROLLI

(SLIDE 1.)

Welcome. Thank you for joining us. Earlier today, we issued a news release containing detailed information on our 2011 third-quarter results. You may access the release on our web site at www.pmi.com.

(SLIDE 2.)

During our call today, we will be talking about results for the third-quarter 2011 and comparing them with the same period in 2010, unless otherwise stated. References to PMI volumes are for PMI shipments. Industry volume and market shares are the latest data available from a number of internal and external sources. Organic volume refers to volume excluding acquisitions. Net revenues exclude excise taxes. Operating Companies Income, or “OCI”, is defined as operating income before general corporate expenses and the amortization of intangibles.

You will find data tables showing how we made adjustments to net revenues and OCI for currency, acquisitions, asset impairment, exit and other costs, free cash flow calculations, and adjustments to Earnings per Share, or “EPS”, as well as reconciliations to U.S. GAAP measures, at the end of today’s web cast slides, which are posted on our web site.

(SLIDE 3.)

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

It’s now my pleasure to introduce Hermann Waldemer, Chief Financial Officer.

Hermann.

HERMANN WALDEMER

(SLIDE 4.)

Welcome ladies and gentlemen. I am extremely pleased to report that we achieved outstanding financial results in the third quarter. Net revenues, excluding currency and

1

acquisitions, increased by 15.7% and adjusted OCI, excluding currency and acquisitions, was 23.7% higher. Finally, adjusted diluted EPS reached $1.37 per share and grew by a remarkable 33.0%, excluding currency. While these results were boosted by relatively easy year-on-year comparisons, in the third quarter, we comfortably surpassed all our mid to long-term currency neutral targets even excluding the whole of our business in Japan, and, year-to-date, we are well within these targets.

(SLIDE 5.)

Our business outlook has further improved since July, fully compensating recent unfavorable currency movements. This has enabled us to narrow our 2011 reported diluted EPS guidance to the upper half of our previous range, namely to $4.75 to $4.80. Compared to our adjusted diluted EPS of $3.87 in 2010, this translates into an improved growth rate excluding currency of approximately 17.5% to 19.0%, well above our mid to long-term currency neutral growth target, and approximately 22.5% to 24.0% at prevailing exchange rates.

(SLIDE 6.)

Our third quarter volume was exceptionally strong. We achieved an organic cigarette volume growth of 4.4%, led by the Asia Region with an increase of 12.6% and EEMA with 4.8%. On a year-to-date September basis, we have achieved organic volume growth of 0.5%.

While there has been a lot of focus on Japan volume, I would like to emphasize that we achieved organic volume growth of 2.3%, excluding Japan, in the third quarter. Furthermore, on a year-to-date basis, the combined increase in our volume in Indonesia and Korea was nearly double that of Japan.

(SLIDE 7.)

Our entire brand portfolio has performed very well. Every single one of our top ten brands achieved volume growth, both in the third quarter and year-to-date, be they international brands such as Marlboro, L&M and Parliament, or leading local brands such as Fortune in the Philippines and Sampoerna A in Indonesia. I would like to highlight the remarkable performance of Parliament, whose volume was up 16.2% in the quarter and 9.9% year-to-date.

(SLIDE 8.)

We are particularly pleased by the improved performance of Marlboro, which is gaining share on a global basis, excluding China and the USA. In the quarter, Marlboro volume increased at double-digit rates in both the Asia and EEMA Regions. On a year-to-date basis, Marlboro has gained 0.3 and 0.5 share points, respectively in these Regions.

2

Marlboro’s slight share decline in the EU Region reflects the pressure on the premium segment from continued economic difficulties in parts of Southern Europe, as well as a moderate share loss in Germany. However, the brand gained share or was stable notably in Belgium, the Czech Republic, France, Hungary, the Netherlands and Poland.

The share decline in the Latin America & Canada Region masks the superb momentum of Marlboro across the Region and is the result of the over-indexation of Marlboro in Mexico, where industry volume has declined at a double-digit rate since the large tax-driven price increases in December last year.

(SLIDE 9.)

This very good performance is evidenced by significant share gains in the four key Latin American markets of Argentina, Brazil, Colombia and Mexico.

(SLIDE 10.)

Our excellent business momentum is reflected in our strong overall share performance. Year-to-date, our market share in our top 30 OCI markets was up 1.4 share points to 36.3%. In the quarter, we achieved a higher share in a clear majority of these 30 markets for an overall gain of 1.2 share points.

(SLIDE 11.)

On a Regional basis, our results in Asia, the growth engine of our company, were outstanding with net revenues and adjusted OCI, both excluding currency and acquisitions, up 39.1% and 75.1%, respectively. This was driven in particular by Indonesia, Japan, Korea and the Philippines.

We also enjoyed strong performances in the other three Regions. In EEMA, net revenues grew 11.2% and adjusted OCI 13.8%, both excluding currency and acquisitions. In Latin America & Canada, they were up 8.3% and 9.0%, respectively. Our results in the EU improved, with net revenues and adjusted OCI, excluding currency and acquisitions, up 2.2% and 3.1%, respectively.

(SLIDE 12.)

During the third quarter, PMI shipments to Japan reached 16.0 billion units, up 5.1 billion, or 47.1%, compared to the same period last year. The increase reflects the higher market share that we have achieved this year, as well as easy comparisons due to the payback in 2010 of our distributor inventory build-up in the second quarter of last year in anticipation of increased trade and consumer purchases ahead of the October tax-driven price increase.

Our third quarter market share of 27.9% was distorted by competitive trade re-loading following shortages of their products through August. We do not expect shipments to the

3

trade to mirror consumer demand until at least the fourth quarter and possibly only in the first quarter next year. We remain, nevertheless, optimistic that we should be able to retain considerable additional market share. Our confidence is based on our ability to maintain a consumer off-take share in convenience stores, such as Lawson, at a level slightly above 30% in September and early October, after all competitive products were available to consumers again. This compared to a pre-earthquake share in these outlets of around 26%.

The other important element that we expect to be able to confirm in the fourth quarter is the evolution in the total market. We now forecast that industry volume will decrease this year by no more than 15%, a much lower rate of decline than the 20% forecast at the beginning of this year.

(SLIDE 13.)

Our business is also doing extremely well in Indonesia. Industry volume growth in the quarter was well over 10%, driven by increasing consumer purchasing power, limited inflation, higher consumer confidence, and positive demographic trends. Our volume rose 22.5% and our market share reached a record level of 31.2%, a gain of 2.0 share points. This very strong performance was led by Sampoerna A, which increased its market share by 0.9 points to 12.1%. Pricing remains robust and we expect the government to continue to implement plans to simplify the excise tax structure.

All these trends are very encouraging as Indonesia is a very profitable market with significant potential for further growth.

(SLIDE 14.)

Our market share in Russia was up slightly in the quarter through August to 25.8%, behind Parliament in premium, Chesterfield in the mid-price and Bond Street in the low-price segment. Our volume in the third quarter was down 3.5% due to distributor inventory adjustments, as well as the impact on the total market of recent price increases.

During the fourth quarter of this year, we expect the Russian Parliament to approve the new road map for excise taxes on tobacco products. This calls for increases that are higher than originally planned, yet still expected to be manageable, with two steps in 2012.

(SLIDE 15.)

PMI volume in Turkey rose by 21.6% in the third quarter, and our market share reached 45.7%, a gain of 3.9 points, led by Parliament in premium, Muratti in the mid-price and L&M in the low-price segment.

While the market had stabilized so far this year, we expect the recently announced excessive increase in the ad-valorem excise tax rate, along with an ineffective Minimum

4

Excise Tax, to cause considerable disruption. We will continue, therefore, to vigorously put forward our rational arguments for a more balanced excise tax structure in Turkey.

(SLIDE 16.)

Germany has benefited from more robust market volume trends this year. Total market volume in Germany was actually up 0.3% in the quarter for cigarettes and 3.8% for fine cut, continuing the positive trend of the first half of this year. Our cigarette volume grew by 1.2% in the third quarter and PMI gained 0.3 share points to reach 35.2%, thanks to the continued strong growth of L&M, which remained the fastest growing brand in the market and was able to more than offset the decline of Marlboro. PMI also gained share in the fine cut segment.

Of even greater importance, our profitability has been enhanced by the price increase that we implemented in the second quarter of this year, following the May excise tax increase. The next tax step will take place in January 2012.

(SLIDE 17.)

We have tremendous business momentum in France, where the overall market has remained stable so far this year. In the third quarter, we further increased our market share by 0.4 points to 40.4%, driven by the strong performance of our premium brands, Marlboro and Philip Morris. Furthermore, we achieved market leadership in the fine cut market with a share of 25.2%, thanks to the successful launch into this segment in February this year of Marlboro. The brand reached a 6.8% segment share in the third quarter.

Finally, we have just announced a price increase of €0.30 per pack across our whole cigarette portfolio. This should enhance our profitability going forward.

(SLIDE 18.)

Spain remains a troubled economy with very high unemployment and a difficult tobacco market. Industry cigarette volume is forecast to decline at least 15% in 2011. The pricing situation was resolved in September when we increased our retail prices by €0.25, bringing Marlboro to its previous level of €4.25 per pack and L&M to €3.75. This should enable our profitability to recover.

(SLIDE 19.)

With the temporary exception of Spain, the pricing environment continues to be very favorable. This is highlighted by the $564 million in pricing variance that we achieved in the third quarter this year and the $1.6 billion year-to-date. During 2011, we have implemented or announced price increases in the majority of our key markets, including Australia, Indonesia and the Philippines in Asia; Algeria, Russia, Saudi Arabia and

5

Ukraine in EEMA; France, Germany, Italy, Poland and Spain in the EU; and finally Argentina, Brazil and Canada in the Latin America & Canada Region.

(SLIDE 20.)

Our outlook on costs remains very favorable. Current tobacco leaf crop prices are stable to slightly declining on a worldwide average basis. Tobacco and direct material cost increases are very moderate and broadly in line with inflation, and are being offset by our continued productivity efforts. We expect to comfortably exceed our $250 million pretax target for cost savings this year.

The combination of strong pricing and limited cost increases has enabled us to continue to grow our superior adjusted OCI margins. On a PMI-wide basis, our adjusted OCI margin, excluding currency and acquisitions, reached 47.3% in the third quarter, a gain of 3.1 points.

(SLIDE 21.)

One reason for the absence of downward pressure on prices in our industry is the important role of excise taxes and the desire of governments to continue to grow revenues. This can be achieved through a judicious combination of reasonable excise tax increases, structural enhancements, and higher prices. There have been improvements in excise tax structures in several markets this year, and some countries have adopted multi-year tax plans, including Germany and Indonesia.

While government deficit financing needs point to renewed pressure on excise taxation as a source of additional revenues, most governments appear to have understood that large, disruptive excise tax increases do not improve revenue-generating capabilities over the mid to long-term. We do, however, expect some countries to seek to generate higher revenues by increasing VAT, which will push prices higher, though this should be manageable. Every year, there are nevertheless still a few governments that continue from time to time to introduce very large and disruptive excise tax increases. As I mentioned, this happened last week in Turkey and additional surprises remain possible, as it is still early in the budget process in many countries.

(SLIDE 22.)

When it comes to plain packaging, we believe that there is no sound evidence that such a regulation would reduce consumption, smoking incidence or youth smoking, or provide any other public health benefit. Indeed, plain packaging would undermine public health objectives by lowering prices and increasing illicit trade. In addition, it would violate intellectual property protections and breach international trade obligations. We, therefore, do not believe that plain packaging regulations should be widely adopted by other governments outside Australia.

6

Though the proposed Bill has not yet passed the Senate, the Australian Government seems intent on ignoring these adverse consequences and on introducing such a regulation. We are therefore vigorously pursuing several legal avenues to challenge this unreasonable proposal and protect our valuable brands.

(SLIDE 23.)

During the third quarter, our free cash flow increased by $577 million, or 25.6%, to $2.8 billion. Excluding currency, the increase was $363 million, or 16.1%. The increase was driven mainly by our excellent business results. On a year-to-date basis, our free cash flow was up more than $1.6 billion to $9.0 billion.

(SLIDE 24.)

Our confidence in the underlying strength of our business and our ability to continue to generate a growing cash flow is reflected in the 20.3% increase in our dividend that we announced last month.

As of the close on Tuesday, our dividend yield stood at a very attractive level of 4.6%. Since the spin in March 2008, we have increased the dividend by 67%, an achievement that few companies have matched over a period that included a major financial crisis, significant currency fluctuations, and an acute recession.

(SLIDE 25.)

During the third quarter, we spent $1.4 billion to repurchase a further 21.2 million shares. Since the March 2008 spin-off, we have now used over $20 billion to repurchase nearly 400 million shares at an average price of $50.81.

Over the same period, we have paid out over $14 billion in dividends, so in total we have returned nearly $35 billion to our shareholders.

(SLIDE 26.)

In conclusion, PMI had an outstanding third quarter. Organic volume grew by a remarkable 4.4%, with half this growth outside Japan. This was driven by the very strong performance of all our main brands, led by Marlboro and Parliament. Our market share momentum remained very strong. Net revenues and adjusted OCI, excluding currency and acquisitions, were up by 15.7% and 23.7%, respectively. Adjusted diluted EPS, excluding currency, increased by 33.0%. The pricing environment remains very favorable and the vast majority of governments continue to act rationally on excise taxation.

Our business outlook has improved further since July, enabling us to narrow our reported diluted 2011 EPS guidance to the upper half of our previous range, namely to $4.75 to $4.80, this despite recent unfavorable currency movements. Compared to our adjusted diluted EPS of $3.87 in 2010, this corresponds to an improved growth rate of

7

approximately 22.5% to 24.0% at prevailing exchange rates and approximately 17.5% to 19.0%, excluding currency.

And finally, and perhaps most important, we have demonstrated again our focus on shareholder returns and shown our confidence in our bright future with the Board’s decision in September to increase our dividend by a further 20.3%.

(SLIDE 27.)

Thank you. I will now be happy to answer your questions.

NICK ROLLI

Well, thank you for joining us. That concludes our call today. If you have any follow-up questions, please contact the investor relations team here in Lausanne.

Thank you again and have a nice day.

8

EX-99.3

2011 Third-Quarter Results

October 20, 2011

Exhibit 99.3

2

Introduction

Unless otherwise stated, we will be talking about results for the   

third-quarter 2011 and comparing them with the same period in   

2010

References to PMI volumes refer to PMI shipment data, unless

otherwise stated

Industry volume and market shares are the latest data available from

a number of internal and external sources

Organic volume refers to volume excluding acquisitions

Net revenues exclude excise taxes

OCI stands for Operating Companies Income, which is defined as

operating income before general corporate expenses and the

amortization of intangibles. OCI growth rates are on an adjusted

basis, which excludes asset impairment, exit and other costs

Data tables showing adjustments to net revenues and OCI for

currency, acquisitions, asset impairment, exit and other costs, free

cash flow calculations, adjustments to EPS, and reconciliations to

U.S. GAAP measures are at the end of today’s web cast slides and

are posted on our web site

3

Forward-Looking and Cautionary Statements

This presentation and related discussion contain statements that, to

the extent they do not relate strictly to historical or current facts,

constitute

“forward-looking

statements”

within

the

meaning

of

the

Private Securities Litigation Reform Act of 1995. Such forward-looking

statements are based on current plans, estimates and expectations,

and are not guarantees of future performance. They are based on

management’s expectations that involve a number of business risks

and uncertainties, any of which could cause actual results to differ

materially from those expressed in or implied by the forward-looking

statements. PMI undertakes no obligation to publicly update or revise

any forward-looking statements, except in the normal course of its

public disclosure obligations. The risks and uncertainties relating to

the forward-looking statements in this presentation include those

described

under

Item

1A.

“Risk

Factors”

in

PMI’s

Form

10-Q

for

the

quarter ended June 30, 2011, filed with the Securities and Exchange

Commission

4

2011 Third-Quarter Results

Outstanding financial performance:

In the quarter, we comfortably surpassed all our mid to

long-term currency neutral annual growth targets even

excluding our business in Japan

Q3, 2011 Results

(a)

Net Revenues                 

+15.7%

Adjusted OCI

+23.7%

Adjusted Diluted EPS

+33.0%

(a)

All financial growth rates exclude currency. Net revenues and OCI growth rates also exclude acquisitions

Source: PMI Financials

5

2011 EPS Guidance

Business outlook further improved, fully compensating

recent unfavorable currency movements

Allows us to narrow our 2011 reported diluted EPS

guidance range to $4.75 to $4.80 (upper half of previous

range)

Compared to our adjusted diluted EPS of $3.87 in 2010,

this translates into improved growth rates of

approximately 17.5% to 19.0% excluding currency, and

approximately 22.5% to 24.0% at prevailing exchange

rates

Source: PMI forecasts

6

PMI Organic Cigarette Volume Growth

(%)

Source: PMI Financials

2011

2011

4.4

0.5

0

5

Q3

YTD Sept

7

PMI Brand Performance

% Volume Growth vs. Prior Year

Q3, 2011

YTD Sept, 2011

Marlboro

3.9%

0.5%

L&M

3.9

2.9

Bond Street

6.8

2.2

Fortune

10.1

9.0

(a)

Philip Morris

1.8

1.0

Parliament

16.2

9.9

Chesterfield

7.0

0.4

Sampoerna A

22.8

11.7

Lark

44.1

15.3

Dji Sam Soe

12.1

10.3

(a)  March through September

Source: PMI Financials

8

Marlboro

Market Shares

Market Shares

YTD

Sept,

2010

YTD

Sept,

2011

Variance

Asia

(a)

6.2%

6.5%

0.3pp

EEMA

(b)

5.6

6.1

0.5

EU

18.1

17.9

(0.2)

LA&C

13.8

13.5

(0.3)

Total

(a)(b)

8.8

9.0

0.2

(a)

Excluding PRC

(b)

Excluding duty-free

(c)

Also excluding the USA

Source: PMI estimates

(c)

9

Marlboro

Market Shares –

LA&C Region

Market Shares

YTD

Sept,

2010

YTD

Sept,

2011

Variance

Argentina

23.2%

24.0%

0.8pp

Brazil

6.7

7.0

0.3

Colombia

3.7

4.7

1.0

Mexico

48.9

51.8

2.9

Source: PMI estimates

10

PMI Market Share Developments

(%)

Top 30 PMI OCI Markets

(a)  Adjusted

for

Philippines

pro

forma

Jan-Feb

2010

Source: PMI Financials and estimates

(a)

34.9

36.3

32

35

38

YTD Sept, 2010

YTD Sept, 2011

11

2011 Third-Quarter Results –

by Region

(a)

Excluding currency and acquisitions

Source: PMI Financials

Q3, 2011 Results

Asia

EEMA

LA&C

EU

Net Revenues

(a)

+39.1%

+11.2%

+8.3%

+2.2%

Adjusted

OCI

(a)

+75.1

+13.8

+9.0

+3.1

12

Japan

Source: PMI Financials, PMI estimates and Tobacco Institute of Japan

PMI shipments up 47.1%:

-

Higher 2011 market share

-

Payback in Q3, 2010, for Q2,

2010, distributor inventory build-

up

September C-store consumer

off-take share slightly above

30%, compared to around

26% pre-crisis

Retention share only

measurable in Q4, 2011, or

Q1, 2012

Industry volume decline not

expected to exceed 15% this

year

13

Indonesia

PMI volume up 22.5% in

Q3, 2011

Record market share of

31.2% in Q3, 2011

Indonesian economy

remains strong and

consumer purchasing

power is increasing

Government expected to

continue to implement

plans to simplify excise tax

structure

Source: PMI Financials and PMI estimates

2010

2011

Other

Marlboro

Dji Sam Soe

Sampoerna A

29.2

31.2

(%)

PMI Market Share

Total PMI

11.2

12.1

7.9

7.7

5.7

7.2

4.2

4.4

0

35

Q3

Q3

14

Russia

Market share up slightly to

25.8% QTD Aug, 2011,

behind:

-

Parliament

in premium

-

Chesterfield

in mid-price, and

-

Bond Street

in low-price

segment

PMI volume down 3.5% in

Q3, 2011, due to:

-

Distributor inventory adjustments

-

Lower total market

During Q4, 2011, Russian

Parliament expected to

approve new manageable

road map for excise taxes

Source: A.C. Nielsen, PMI Finance and Russian Ministry of Finance

15

Turkey 

PMI volume up 21.6% in Q3,

2011

Strong share gains driven by:

-

Parliament

in premium

-

Muratti

in mid-price, and

-

L&M

in low-price

Total market had stabilized,

but recently announced, very

large ad-valorem excise tax

increase expected to be

disruptive

A more balanced excise tax

structure is needed

Source: PMI Financials, PMI estimates and A.C. Nielsen

Premium

Mid-price

Low-price

41.8

45.7

(%)

PMI Market Share

Total PMI

19.2

21.2

5.9

6.5

18.0

16.7

0

50

Q3, 2010

Q3, 2011

16

Germany

Source: PMI Financials and PMI estimates

Q3, 2010

Q3, 2011

L&M

Marlboro

Other

(%)

PMI Market Shares by Segment

Germany had benefited

from more robust market

volume trends this year

Q3, 2011, total German

market volume:

-

Cigarettes +0.3%

-

Fine cut +3.8%

PMI share gains in both

cigarette and fine cut

segments

Price increase in Q2, 2011.

Next tax step in Jan 2012

20.3

2.7

10.3

5.6

6.4

35.2

14.7

4.6

Cigarette

Fine Cut

21.1

1.3

9.2

5.6

7.3

34.9

14.2

4.6

Cigarette

Fine Cut

17

France

Great momentum in a

stable market

Cigarette share gain of

0.4pp to 40.4%, driven by

premium Marlboro

and

Philip Morris

Strong growth in fine cut

segment since launch of

Marlboro

in Feb 2011

Cigarette price increase of

€0.30/pack this month

Source: PMI estimates

Q3, 2010

Q3, 2011

40.4

Philip Morris

Marlboro

Other

(%)

PMI Market Shares by Segment

25.9

6.8

8.2

5.7

12.7

25.2

6.3

Cigarette

Fine Cut

25.7

7.7

5.7

13.3

40.0

19.0

6.6

Cigarette

Fine Cut

18

Spain

Very high unemployment

driving decline in cigarette

industry volume of at least

15% in 2011

Pricing situation was

resolved in September:

-

Marlboro

back to previous

level of €4.25/pack

-

L&M

raised to €3.75/pack

Source: PMI estimates

19

Pricing

The pricing environment

continues to be very

favorable

In 2011, PMI has

implemented or announced

price increases in:

-

Asia: Australia, Indonesia,

Philippines

-

EEMA: Algeria, Russia, Saudi

Arabia, Ukraine

-

EU: France, Germany, Italy,

Poland, Spain

-

LA&C: Argentina, Brazil,

Canada

Source: PMI Financials

($ mio)

Q3

Q1

Pricing Variance

Q2

449

453

341

617

292

564

1,082

1,634

0

900

1,800

2010

2011

20

Costs and Margins 

Adjusted OCI Margins

Third-Quarter

2010

2011

(a)

Variance

(a)

Asia

37.6%

47.4%

9.8pp

EEMA

45.1

46.2

1.1

EU

53.0

53.5

0.5

LA&C

32.7

32.9

0.2

Total

44.2

47.3

3.1

(a)

Excluding currency and acquisitions

Source: PMI Financials

Stable tobacco leaf prices

Moderate cost increases offset by productivity savings

that will surpass $250 million in 2011

21

Excise Taxation 

Excise tax structures have improved and several

countries have adopted multi-year tax plans

Most governments appear to have understood that large

excise tax increases are disruptive and do not improve

revenue generation over mid to long-term

We expect some VAT increases in 2012, but these should

be manageable

Every year, some governments introduce disruptive

excise tax increases. This happened last week in Turkey

and additional surprises remain possible

22

Plain Packaging 

We oppose such measures because:

-

No sound evidence it would reduce consumption, smoking

incidence or youth smoking, or provide any other public health

benefit

-

Undermines public health objectives by lowering prices and

increasing illicit trade

-

Violates intellectual property protections and breaches

international trade obligations

We therefore do not believe that plain packaging

regulations should be widely adopted

We are vigorously pursuing several legal avenues to

challenge the Australian Government’s plain packaging

proposal

23

($ million)

+22.1%

Currency

Free

Cash

Flow

(a)

(a)

Free cash flow equals net cash provided by operating activities less capital expenditures

Source: PMI Financials

($ million)

+25.6%

Currency

2010

2011

2010

2011

9,000

2,253

2,830

214

0

1,000

2,000

3,000

Q3

Q3

7,373

478

0

3,000

6,000

9,000

YTD Sept

YTD Sept

+10.3%

+20.3%

$3.08

$1.84

+17.4%

2008

Aug

Sept

Sept

Sept

2011

+7.4%

24

Dividend Increases Since Spin-Off

(a) 

(a)

Dividends for 2008 and 2011 are annualized rates. 2008 annualized rate is based on a quarterly dividend of $0.46 per common share, declared

June 18, 2008. The annualized rate for 2011 is based on a quarterly dividend of $0.77 per common share, declared September 14, 2011

Source: PMI Financials

2008

2009

2010

2011

+67.4%

25

Share Repurchases and Dividends

During the third quarter, PMI spent $1.4 billion to

repurchase a further 21.2 million shares

Since the March 2008 spin:

-

Over $20 billion spent to repurchase nearly 400 million shares at

an average price of $50.81 per share

-

Over $14 billion paid out in dividends

-

Nearly $35 billion returned to our shareholders

Source: PMI Financials

26

Summary 

Outstanding third quarter:

-

Organic volume growth of 4.4%

-

Strong market share momentum and favorable pricing

environment

-

Adjusted diluted EPS, excluding currency, increased by 33.0%

-

2011 reported diluted EPS guidance range narrowed to $4.75-

$4.80, with improved business outlook offsetting recent

unfavorable currency movements

-

Compared to an adjusted diluted EPS of $3.87 in 2010, this

corresponds to an increase of approximately 22.5% to 24.0% at

prevailing exchange rates, and approximately 17.5% to 19.0%,

excluding currency

20.3% dividend increase in September demonstrates our

focus on shareholder returns and our belief in a bright

future

Source: PMI Financials

Questions & Answers

2011 Third-Quarter Results

28

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries

Reconciliation of Non-GAAP Measures

Adjustments for the Impact of Currency and Acquisitions

For the Quarters Ended September 30,

($ in millions)

(Unaudited)

Reported Net

Revenues

Less

Excise

Taxes

Reported Net

Revenues

excluding

Excise Taxes

Less

Currency

Reported Net

Revenues

excluding

Excise Taxes &

Currency

Less

Acquisi-

tions

Reported Net

Revenues

excluding

Excise Taxes, 

Currency &

Acquisitions

Reported

Net

Revenues

Less

Excise

Taxes

Reported Net

Revenues

excluding

Excise Taxes

Reported

Reported

excluding

Currency

Reported

excluding

Currency &

Acquisitions

8,155

$           

5,649

$  

2,506

$           

321

$      

2,185

$               

-

$         

2,185

$           

European Union

7,045

$     

4,906

$  

2,139

$           

17.2%

2.2%

2.2%

4,921

2,711

2,210

89

2,121

13

2,108

EEMA

4,184

2,288

1,896

16.6%

11.9%

11.2%

5,143

2,344

2,799

248

2,551

2

2,549

Asia

3,629

1,796

1,833

52.7%

39.2%

39.1%

2,487

1,640

847

39

808

-

808

Latin America & Canada

2,078

1,332

746

13.5%

8.3%

8.3%

20,706

$         

12,344

$

8,362

$           

697

$      

7,665

$              

15

$      

7,650

$           

PMI Total

16,936

$   

10,322

$

6,614

$           

26.4%

15.9%

15.7%

Reported

Operating

Companies

Income

Less

Currency

Reported

Operating

Companies

Income

excluding

Currency

Less

Acquisi-

tions

Reported

Operating

Companies

Income

excluding

Currency &

Acquisitions

Reported

Operating

Companies

Income

Reported

Reported

excluding

Currency

Reported

excluding

Currency &

Acquisitions

1,262

$           

105

$      

1,157

$               

-

$         

1,157

$           

European Union

1,113

$           

13.4%

4.0%

4.0%

925

(32)

957

(13)

970

EEMA

856

8.1%

11.8%

13.3%

1,309

104

1,205

2

1,203

Asia

690

89.7%

74.6%

74.3%

255

-

255

-

255

Latin America & Canada

244

4.5%

4.5%

4.5%

3,751

$           

177

$      

3,574

$              

(11)

$     

3,585

$           

PMI Total

2,903

$           

29.2%

23.1%

23.5%

2011

2010

% Change in Reported Operating

Companies Income

2011

2010

% Change in Reported Net Revenues

excluding Excise Taxes

29

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries

Reconciliation of Non-GAAP Measures

Reconciliation of Reported Operating Companies Income to Adjusted Operating Companies Income &

Reconciliation of Adjusted Operating Companies Income Margin, excluding Currency and Acquisitions

For the Quarters Ended September 30,

($ in millions)

(Unaudited)

(a) For the calculation of net revenues excluding excise taxes, currency and acquisitions, refer to previous slide

Reported

Operating

Companies

Income

Less

Asset

Impairment &

Exit Costs

Adjusted

Operating

Companies

Income

Less

Currency

Adjusted

Operating

Companies

Income

excluding

Currency

Less

Acquisi-

tions

Adjusted

Operating

Companies

Income

excluding

Currency &

Acquisitions

Reported

Operating

Companies

Income

Less

Asset Impairment &

Exit Costs

Adjusted

Operating

Companies

Income

Adjusted

Adjusted

excluding

Currency

Adjusted

excluding

Currency &

Acquisitions

1,262

$           

(11)

$                 

1,273

$        

105

$      

1,168

$         

-

$                     

1,168

$           

European Union

1,113

$       

(20)

$                            

1,133

$       

12.4%

3.1%

3.1%

925

(16)

941

(32)

973

(1)

974

EEMA

856

-

856

9.9%

13.7%

13.8%

1,309

(5)

1,314

104

1,210

2

1,208

Asia

690

-

690

90.4%

75.4%

75.1%

255

(11)

266

-

266

-

266

Latin America & Canada

244

-

244

9.0%

9.0%

9.0%

3,751

$           

(43)

$                 

3,794

$        

177

$      

3,617

$         

1

$                     

3,616

$           

PMI Total

2,903

$       

(20)

$                            

2,923

$       

29.8%

23.7%

23.7%

% Points Change

Adjusted

Operating

Companies

Income

excluding

Currency

Net Revenues

excluding

Excise Taxes &

Currency

(a)

Adjusted

Operating

Companies

Income

Margin

excluding

Currency

Adjusted

Operating

Companies

Income

excluding

Currency &

Acquisitions

Net Revenues

excluding

Excise Taxes,

Currency &

Acquisitions

(a)

Adjusted

Operating

Companies

Income Margin

excluding

Currency &

Acquisitions

Adjusted

Operating

Companies

Income

Net Revenues

excluding Excise

Taxes

(a)

Adjusted

Operating

Companies

Income

Margin

Adjusted

Operating

Companies

Income

Margin

excluding

Currency

Adjusted

Operating

Companies

Income Margin

excluding

Currency &

Acquisitions

1,168

$           

2,185

$            

53.5%

1,168

$         

2,185

$             

53.5%

European Union

1,133

$       

2,139

$                        

53.0%

0.5

0.5

973

2,121

45.9%

974

2,108

46.2%

EEMA

856

1,896

45.1%

0.8

1.1

1,210

2,551

47.4%

1,208

2,549

47.4%

Asia

690

1,833

37.6%

9.8

9.8

266

808

32.9%

266

808

32.9%

Latin America & Canada

244

746

32.7%

0.2

0.2

3,617

$           

7,665

$            

47.2%

3,616

$         

7,650

$             

47.3%

PMI Total

2,923

$       

6,614

$                        

44.2%

3.0

3.1

% Change in Adjusted Operating

Companies Income

2010

2011

2010

2011

30

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries

Reconciliation of Non-GAAP Measures

Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS and Adjusted Diluted EPS, excluding Currency

For the Quarters Ended September 30,

(Unaudited)

2011

2010

% Change

Reported Diluted EPS

1.35

$                     

0.99

$                     

36.4%

Adjustments:

Asset impairment and exit costs

0.02

0.01

Tax items

-

-

Adjusted Diluted EPS

1.37

$                     

1.00

$                     

37.0%

Less:

Currency impact

0.04

Adjusted Diluted EPS, excluding Currency

1.33

$                     

1.00

$                     

33.0%

31

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries

Reconciliation of Non-GAAP Measures

Reconciliation

of

Operating

Cash

Flow

to

Free

Cash

Flow

and

Free

Cash

Flow,

excluding

Currency

For the Quarters and Nine Months Ended September 30,

($ in millions)

(Unaudited)

(a) Operating Cash Flow

For the Quarters Ended

For the Nine Months Ended

September 30,

September 30,

2011

2010

% Change

2011

2010

% Change

Net cash provided by operating activities

(a)

3,053

$                

2,417

$                

26.3%

9,568

$                

7,856

$                

21.8%

Less:

Capital expenditures

223

164

568

483

Free cash flow

2,830

$                

2,253

$                

25.6%

9,000

$                

7,373

$                

22.1%

Less:

Currency impact

214

478

Free cash flow, excluding currency

2,616

$                

2,253

$                

16.1%

8,522

$                

7,373

$                

15.6%

For the Quarters Ended

For the Nine Months Ended

September 30,

September 30,

2011

2010

% Change

2011

2010

% Change

Net cash provided by operating activities

(a)

3,053

$                

2,417

$                

26.3%

9,568

$                

7,856

$                

21.8%

Less:

Currency impact

236

515

Net cash provided by operating activities,

excluding currency

2,817

$                

2,417

$                

16.5%

9,053

$                

7,856

$                

15.2%

32

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries

Reconciliation of Non-GAAP Measures

Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS

For the Year Ended December 31,

(Unaudited)

2010

Reported Diluted EPS

3.92

$                     

Adjustments:

Tax items

(0.07)

Asset impairment and exit costs

0.02

Adjusted Diluted EPS

3.87

$                     

2011 Third-Quarter Results

October 20, 2011