8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 18, 2013

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 July 18, 2013, Philip Morris International Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2013 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 script 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 July 18, 2013 (furnished pursuant to Item 2.02)

99.2 Conference Call Script dated July 18, 2013 (furnished pursuant to Item 2.02)

99.3 Webcast Slides dated July 18, 2013 (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: July 18, 2013

EXHIBIT INDEX

Exhibit No.Description

99.1 Philip Morris International Inc. Press Release dated July 18, 2013 (furnished pursuant to Item 2.02)

99.2 Conference Call Script dated July 18, 2013 (furnished pursuant to Item 2.02)

99.3 Webcast Slides dated July 18, 2013 (furnished pursuant to Item 2.02)

EX-99.1

Exhibit 99.1    

PRESS RELEASE
Investor Relations	Media:
New York: +1 (917) 663 2233	Lausanne: +41 (0)58 242 4500
Lausanne: +41 (0)58 242 4666

PHILIP MORRIS INTERNATIONAL INC. (PMI) REPORTS 2013 SECOND-QUARTER RESULTS; REVISES 2013 FULL-YEAR REPORTED DILUTED EPS FORECAST FOR CURRENCY ONLY;

UNDERLYING BUSINESS OUTLOOK UNCHANGED

Second-Quarter 2013

• Reported diluted earnings per share of $1.30, down by $0.06 or 4.4% versus $1.36 in 2012

• Excluding unfavorable currency of $0.07, reported diluted earnings per share up by $0.01 or 0.7% versus $1.36 in 2012 as detailed in the attached Schedule 13

• Adjusted diluted earnings per share of $1.30, down by $0.06 or 4.4% versus $1.36 in 2012

• Excluding unfavorable currency of $0.07, adjusted diluted earnings per share up by $0.01 or 0.7% versus $1.36 in 2012 as detailed in the attached Schedule 12

• Cigarette shipment volume of 228.9 billion units, down by 3.9%

• Cigarette shipment volume decrease of 2.6%, excluding the Philippines

• Reported net revenues, excluding excise taxes, of $7.9 billion, down by 2.5%

• Excluding unfavorable currency, reported net revenues, excluding excise taxes, up by 0.5%

• Reported operating companies income of $3.4 billion, down by 7.3%

• Excluding unfavorable currency, reported operating companies income down by 3.3%

• Adjusted operating companies income, reflecting the items detailed in the attached Schedule 11, of $3.4 billion, down by 7.4%

• Excluding unfavorable currency, adjusted operating companies income down by 3.4%

• Reported operating income of $3.3 billion, down by 7.5%

• Repurchased 16.7 million shares of the company's common stock for $1.5 billion

Six Months Year-to-Date 2013

• Reported diluted earnings per share of $2.58, down by $0.02 or 0.8% versus $2.60 in 2012

• Excluding unfavorable currency of $0.14, reported diluted earnings per share up by $0.12 or 4.6% versus $2.60 in 2012 as detailed in the attached Schedule 17

• Adjusted diluted earnings per share of $2.59, down by $0.02 or 0.8% versus $2.61 in 2012

• Excluding unfavorable currency of $0.14, adjusted diluted earnings per share up by $0.12 or 4.6% versus $2.61 in 2012 as detailed in the attached Schedule 16

• Cigarette shipment volume of 433.8 billion units, down by 5.1%

• Cigarette shipment volume decrease of 2.4%, excluding the Philippines

• Reported net revenues, excluding excise taxes, of $15.5 billion, down by 0.4%

• Excluding unfavorable currency, reported net revenues, excluding excise taxes, up by 1.8%

• Reported operating companies income of $6.9 billion, down by 4.0%

• Excluding unfavorable currency, reported operating companies income down by 0.2%

• Adjusted operating companies income, reflecting the items detailed in the attached Schedule 15, of $6.9 billion, down by 4.1%

• Excluding unfavorable currency, adjusted operating companies income down by 0.3%

• Reported operating income of $6.7 billion, down by 4.1%

• Repurchased 33.4 million shares of the company's common stock for $3.0 billion

Full-Year 2013

• PMI revises, for prevailing exchange rates only, its 2013 full-year reported diluted earnings per share forecast to be in a range of $5.43 to $5.53, versus $5.17 in 2012

• Excluding an unfavorable currency impact, at prevailing exchange rates, of approximately $0.31 for the full-year 2013, reported diluted earnings per share are projected to increase by approximately 10-12% versus adjusted diluted earnings per share of $5.22 in 2012, as detailed in the attached Schedule 20.

NEW YORK, July 18, 2013 - Philip Morris International Inc. (NYSE / Euronext Paris: PM) today announced its 2013 second-quarter results.

“As expected, despite strong pricing and a robust share performance, our second-quarter results were primarily impacted by lower industry volume in several key markets, as well as the timing of inventory movements in Japan, higher costs, predominantly in Asia, and stiffer currency headwinds,” said André Calantzopoulos, Chief Executive Officer.

“For the second half of the year, we expect volume/mix to improve, pricing to remain strong and our total cost variance, excluding currency, to be flat. While industry volume remains a challenge, our underlying business performance is such that we continue to expect to meet our mid to long-term currency-neutral adjusted diluted EPS growth rate target of 10-12% in 2013.”

Conference Call

A conference call, hosted by Jacek Olczak, Chief Financial Officer, with members of the investor community and news media, will be webcast at 9:00 a.m., Eastern Time, on July 18, 2013. Access is available at www.pmi.com/webcasts.

Dividends and Share Repurchase Program

During the quarter, PMI declared a regular quarterly dividend of $0.85, representing an annualized rate of $3.40 per common share, and spent $1.5 billion to repurchase 16.7 million shares, as shown in the table below.

Current $18 Billion, Three-Year Program
	Value	Shares
	($ Mio.)	000
August-December 2012	2,853	32,206
January-March 2013	1,500	16,685
April-June 2013	1,545	16,665
Total Under Program	5,898	65,556

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Since May 2008, when PMI began its first share repurchase program, the company has spent an aggregate of $30.9 billion to repurchase 522.3 million shares at an average price of $59.15 per share, or 24.8% of the shares outstanding at the time of the spin-off in March 2008.

Acquisitions and Agreements

During the quarter, PMI announced that Grupo Carso, S.A.B. de C. V. (“Grupo Carso”) will sell to PMI its 20% interest in PMI's Mexican tobacco business. The final purchase price, estimated to be approximately $700 million, will be determined by a pre-agreed formula. It is subject to a potential adjustment based on the actual performance of the Mexican tobacco business over the three-year period ending two fiscal years after the closing of the purchase. The transaction, as a result of which PMI will own 100% of its Mexican business, is expected to be completed by September 30, 2013, subject to the approval of the Mexican antitrust authority, and is projected to be marginally accretive to PMI's earnings per share as of the fourth quarter of 2013.

2013 Full-Year Forecast

PMI revises, for prevailing exchange rates only, its 2013 full-year reported diluted earnings per share forecast to be in a range of $5.43 to $5.53, versus $5.17 in 2012.

Excluding an unfavorable currency impact, at prevailing exchange rates, of approximately $0.31 for the full-year 2013, reported diluted earnings per share are projected to increase by approximately 10-12% versus adjusted diluted earnings per share of $5.22 in 2012, as detailed in the attached Schedule 20, unchanged from the constant-currency earnings per share forecast disclosed on May 14, 2013.

This forecast includes a one-year gross productivity and cost savings target for 2013 of approximately $300 million and a share repurchase target for 2013 of $6.0 billion.

This forecast excludes the impact of any potential future acquisitions, unanticipated asset impairment and exit cost charges, future changes in currency exchange rates and any unusual events.

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

2013 SECOND-QUARTER CONSOLIDATED RESULTS

In this press release, “PMI” refers to Philip Morris International Inc. and its subsidiaries.  References to total international cigarette market, defined as worldwide cigarette volume excluding the United States, total cigarette market, total market and market shares are PMI estimates based on the latest available data from a number of internal and external sources and may, in defined instances, exclude the People's Republic of China and/or PMI's duty-free business. The term “net revenues” refers to operating revenues from the sale of our products, excluding excise taxes and net of sales and promotion incentives. Operating companies income, or “OCI,” is defined as operating income before general corporate expenses and the amortization of intangibles.  PMI's management evaluates business segment performance and allocates resources based on OCI.  Management also reviews OCI, OCI margins and earnings per share, or “EPS,” on an adjusted basis (which may exclude the impact of currency and other items such as acquisitions, asset impairment and exit costs, discrete tax items and unusual items), earnings before interest, taxes, depreciation, and amortization, or “EBITDA,” free cash flow, defined as net cash provided by operating activities less capital expenditures, and net debt.  PMI believes it is appropriate to disclose these measures as they improve comparability and help investors analyze business performance and trends. Non-GAAP measures used in this release should be considered neither in isolation nor as a substitute for

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the financial measures prepared in accordance with U.S. GAAP. Comparisons are to the same prior-year period unless otherwise stated.  For a reconciliation of non-GAAP measures to corresponding GAAP measures, see the relevant schedules provided with this release.

NET REVENUES

PMI Net Revenues ($ Millions)
	Second-Quarter								Six Months Year-To-Date
							Excl.								Excl.
	2013		2012		Change		Curr.		2013		2012		Change		Curr.
European Union	$	2,206	$	2,285	(3.5	)%	(2.4	)%	$	4,176	$	4,338	(3.7	)%	(3.8	)%
Eastern Europe, Middle East & Africa	2,181		2,151		1.4	%	3.7	%	4,224		3,986		6.0	%	6.9	%
Asia	2,692		2,855		(5.7	)%	(0.8	)%	5,482		5,632		(2.7	)%	2.0	%
Latin America & Canada	838		829		1.1	%	4.5	%	1,619		1,612		0.4	%	3.3	%
Total PMI	$	7,917	$	8,120	(2.5	)%	0.5	%	$	15,501	$	15,568	(0.4	)%	1.8	%

Net revenues of $7.9 billion were down by 2.5%, including unfavorable currency of $243 million. Excluding currency, net revenues increased by 0.5%, driven by favorable pricing of $499 million across all Regions, partially offset by unfavorable volume/mix of $459 million.

OPERATING COMPANIES INCOME

PMI Operating Companies Income ($ Millions)
	Second-Quarter						Six Months Year-To-Date
					Excl.						Excl.
	2013	2012	Change		Curr.		2013	2012	Change		Curr.
European Union	$1,082	$1,117	(3.1	)%	(3.3	)%	$2,020	$2,147	(5.9	)%	(5.4	)%
Eastern Europe, Middle East & Africa	945	948	(0.3	)%	2.6	%	1,880	1,758	6.9	%	8.7	%
Asia	1,128	1,364	(17.3	)%	(9.1	)%	2,470	2,771	(10.9	)%	(3.1	)%
Latin America & Canada	255	249	2.4	%	5.6	%	509	486	4.7	%	7.2	%
Total PMI	$3,410	$3,678	(7.3	)%	(3.3	)%	$6,879	$7,162	(4.0	)%	(0.2	)%

Reported operating companies income of $3.4 billion was down by 7.3%, including unfavorable currency of $146 million. Excluding currency, operating companies income decreased by 3.3%, due to unfavorable volume/mix of $386 million, primarily in Japan, the Philippines and Russia, and higher costs, principally related to manufacturing in Indonesia, brand support in the Philippines, and the annualization of business infrastructure investments in Russia, partly offset by favorable pricing.

Adjusted operating companies income decreased by 7.4% as shown in the table below and detailed in Schedule 11. Adjusted operating companies income, excluding unfavorable currency, decreased by 3.4%.

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PMI Operating Companies Income ($ Millions)
	Second-Quarter						Six Months Year-To-Date
	2013		2012		Change		2013		2012		Change
Reported OCI	$3,410		$3,678		(7.3	)%	$6,879		$7,162		(4.0	)%
Asset impairment & exit costs	(5	)	(8	)			(8	)	(16	)
Adjusted OCI	$3,415		$3,686		(7.4	)%	$6,887		$7,178		(4.1	)%
Adjusted OCI Margin*	43.1	%	45.4	%	(2.3) p.p.		44.4	%	46.1	%	(1.7) p.p.
*Margins are calculated as adjusted OCI, divided by net revenues, excluding excise taxes.

Adjusted operating companies income margin, excluding unfavorable currency, decreased by 1.8

points to 43.6%, as detailed in Schedule 11, primarily reflecting unfavorable volume/mix and higher costs.

SHIPMENT VOLUME & MARKET SHARE

PMI Cigarette Shipment Volume (Million Units)
	Second-Quarter				Six Months Year-To-Date
	2013	2012	Change		2013	2012	Change
European Union	48,723	51,804	(5.9	)%	91,690	99,593	(7.9	)%
Eastern Europe, Middle East & Africa	76,298	79,156	(3.6	)%	143,132	145,084	(1.3	)%
Asia	80,588	83,472	(3.5	)%	153,207	164,502	(6.9	)%
Latin America & Canada	23,290	23,864	(2.4	)%	45,817	48,207	(5.0	)%
Total PMI	228,899	238,296	(3.9	)%	433,846	457,386	(5.1	)%

2013 Second-Quarter

PMI's cigarette shipment volume of 228.9 billion units decreased by 3.9%, or 9.4 billion units, due principally to a total industry volume decline, partially offset by a slight gain in market share excluding China. The decrease in PMI's cigarette shipment volume mainly reflected: in the EU, the unfavorable impact of excise tax-driven price increases, the weak economic and employment environment, the share growth of the other tobacco products (OTP) category, and the increased prevalence of illicit trade; in EEMA, the impact of tax-driven price increases and the reversal of favorable distributor inventory movements in Russia in the first quarter of 2013, and in Turkey, the renewed growth in illicit trade, partly offset by the Middle East and North Africa; in Asia, the unfavorable impact of the disruptive January 2013 excise tax increase in the Philippines and the timing of inventory movements in Japan, partly offset by Indonesia; in Latin America & Canada, a lower total market in Argentina and Brazil, partly offset by Mexico. Excluding the Philippines, PMI's cigarette shipment volume decreased by 2.6%.

Total cigarette shipments of Marlboro of 72.4 billion units decreased by 5.9%, due primarily to declines in: the EU, notably France, the Netherlands, Poland and the United Kingdom, partly offset by Germany and Italy; EEMA, primarily Russia and Ukraine, partly offset by the Middle East and North Africa; Asia, predominantly Japan and the Philippines; and Latin America & Canada, mainly Argentina and Brazil, partly offset by Mexico. Excluding the Philippines, total cigarette shipments of Marlboro decreased by 3.9%.

Total cigarette shipments of L&M of 25.1 billion units increased by 6.1%, driven notably by Egypt, partly offset by Algeria and Turkey. Total cigarette shipments of Bond Street of 11.6 billion units decreased by 8.9%, due predominantly to Russia and Ukraine. Total cigarette shipments of Philip Morris of 8.8 billion

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units decreased by 8.5%, due primarily to Italy and the Philippines. Total cigarette shipments of Parliament of 11.5 billion units increased by 4.0%, driven by Korea and Turkey. Total cigarette shipments of Chesterfield of 8.9 billion units decreased by 7.9%, due primarily to Russia and Ukraine, partly offset by Germany. Total cigarette shipments of Lark of 7.9 billion units decreased by 7.9%, due predominantly to Turkey.

Total shipment volume of OTP, in cigarette equivalent units, increased by 3.0%. Total shipment volume for cigarettes and OTP, in cigarette equivalent units, decreased by 3.7%.

PMI's market share increased in a number of key markets, including Algeria, Argentina, Belgium, Canada, Egypt, France, Germany, Indonesia, Italy, Korea, the Netherlands, Portugal, Saudi Arabia, Spain, Ukraine, and the United Kingdom.

EUROPEAN UNION REGION (EU)

2013 Second-Quarter

Net revenues of $2.2 billion decreased by 3.5%.  Excluding unfavorable currency of $25 million, net revenues decreased by 2.4%, due to unfavorable volume/mix of $131 million, largely reflecting a lower total market, notably in France, Germany and Poland, partly offset by favorable pricing of $77 million, driven mainly by France and Spain.

Operating companies income of $1.1 billion decreased by 3.1%, including favorable currency of $2 million. Excluding currency, operating companies income decreased by 3.3%, principally reflecting unfavorable volume/mix of $114 million, partially offset by favorable pricing.

Adjusted operating companies income decreased by 3.1%, as shown in the table below and detailed on Schedule 11.  Adjusted operating companies income, excluding favorable currency, decreased by 3.3%.

EU Operating Companies Income ($ Millions)
	Second-Quarter						Six Months Year-To-Date
	2013		2012		Change		2013		2012		Change
Reported OCI	$1,082		$1,117		(3.1	)%	$2,020		$2,147		(5.9	)%
Asset impairment & exit costs	0		0				0		0
Adjusted OCI	$1,082		$1,117		(3.1	)%	$2,020		$2,147		(5.9	)%
Adjusted OCI Margin*	49.0	%	48.9	%	0.1 p.p.		48.4	%	49.5	%	(1.1) p.p.
*Margins are calculated as adjusted OCI, divided by net revenues, excluding excise taxes.

Adjusted operating companies income margin, excluding favorable currency, decreased by 0.5 points to 48.4%, as detailed on Schedule 11, primarily as a result of unfavorable volume/mix. 

The total cigarette market in the EU of 121.6 billion units decreased by 8.0%, due primarily to tax-driven price increases, the unfavorable economic and employment environment, particularly in southern Europe, and the increased prevalence of illicit trade. The total OTP market in the EU of 41.0 billion cigarette equivalent units decreased by 0.4%, reflecting a lower total fine cut market, down by 0.8% to 35.7 billion cigarette equivalent units.

Although PMI's cigarette shipment volume of 48.7 billion units decreased by 5.9%, due principally to a lower total market across the Region,  PMI's market share increased by 0.7 points to 39.3%. On a June

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year-to-date basis, PMI's market share increased by 0.7 points to 38.7%.  While shipment volume of Marlboro of 23.9 billion units in the quarter decreased by 3.2%, mainly due to a lower total market, market share increased by 0.5 points to 19.4%. Despite a shipment volume decrease for L&M of 4.8% to 8.5 billion units, market share increased by 0.3 points to 6.9%. Shipment volume of Chesterfield of 4.9 billion units increased by 2.9% and market share increased by 0.2 points to 4.0%, driven by gains, notably in Austria, the Czech Republic, Portugal, Spain and the United Kingdom, partly offset by Germany. Although shipment volume of Philip Morris of 2.5 billion units decreased by 8.4%, market share increased by 0.3 points to 2.0%, with gains notably in France, Italy and Portugal. 

PMI's shipments of OTP of 5.5 billion cigarette equivalent units increased by 3.2%, driven by higher share. PMI's OTP total market share was 13.4%, up by 0.9 points, driven by gains in the fine cut category, notably in France, up by 2.3 points to 27.3%, Hungary, up by 4.5 points to 10.7%, Italy, up by 7.9 points to 37.9%, Poland, up by 1.9 points to 20.8%, and Spain, up by 1.1 points to 12.7%.

EU Key Market Commentaries

In France, the total cigarette market of 12.3 billion units decreased by 9.1%, mainly reflecting the unfavorable impact of price increases in the fourth quarter of 2012, an increase in illicit trade, growth of the OTP category, and a weakening economy. Although PMI's shipments of 5.0 billion units decreased by 9.2%, market share increased by 0.5 points to 40.5%, mainly driven by the resilience of premium Philip Morris,up by 0.8 points to 9.1%, and the growth of Chesterfield,up by 0.1 point to 3.4%. Market shares of Marlboro and L&M decreased by 0.2 points each to 25.0% and 2.5%, respectively. The total industry fine cut category of 3.6 billion cigarette equivalent units increased by 2.9%. PMI's market share of the category increased by 2.3 points to 27.3%.

In Germany, the total cigarette market of 19.7 billion units decreased by 7.0%, mainly reflecting the reversal of trade purchases of competitive products made in the first quarter of 2013. The underlying total market is estimated to have declined by 2.8%. Although PMI's shipments of 7.4 billion units decreased by 3.9%, market share increased by 1.2 points to 37.6%, driven by Marlboro, up by 1.5 points to 23.3%, and L&M, up by 0.3 points to 10.8%, partly offset by Chesterfield, down by 0.6 points to 1.7%. The total industry fine cut category of 10.4 billion cigarette equivalent units decreased by 0.7%. PMI's market share of the category was down by 0.3 points to 14.9%.

In Italy, the total cigarette market of 18.7 billion units decreased by 7.2%, reflecting an unfavorable economic and employment environment and an increase in illicit trade.  Although PMI's shipments of 10.6 billion units decreased by 2.4%, market share increased by 0.4 points to 53.3%, with Marlboro up by 0.4 points to 25.8%.Market share of Philip Morris increased by 1.1 points to 2.3%, benefiting from the 2012 launch of Philip Morris Selection in the low-price segment, and share of Chesterfield was flat at 3.5%, partially offset by Diana in the low-price segment, down by 0.8 points to 11.6%, impacted by the availability of non-duty paid products. The total industry fine cut category of 1.5 billion cigarette equivalent units decreased by 10.5%, reflecting the 2012 excise tax-driven reduction of the price gap differential with cigarettes. PMI's market share of the category increased by 7.9 points to 37.9%, driven by Marlboro Red and Gold fine cut. 

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In Poland, the total cigarette market of 11.9 billion units decreased by 13.4%, mainly reflecting the reversal of trade purchases of competitive products made in the first quarter of 2013, and the increased availability of non-duty paid OTP products. PMI's shipments of 4.4 billion units decreased by 13.8%. Although PMI's market share decreased by 0.2 points to 36.7%, share of Marlboro and L&M increased by 0.6 and 1.2 points to 11.8% and 17.5%, respectively. Market share of Chesterfield decreased by 0.1 point to 2.0%. Although the total industry fine cut category of 0.9 billion cigarette equivalent units decreased by 9.1%, reflecting the prevalence of non-duty paid OTP products, PMI's market share of the category increased by 1.9 points to 20.8%.

In Spain, the total cigarette market of 12.4 billion units decreased by 9.1%, mainly reflecting the impact of price increases in 2012 and the first quarter of 2013, the unfavorable economic and employment environment, the growth of the OTP category, and illicit trade. PMI's shipments of 4.3 billion units decreased by 0.4%. PMI's market share increased by 2.3 points to 31.9%, driven by higher share of Marlboro, L&M and Chesterfield, up by 0.9, 0.5 and 0.8 points to 14.8%, 6.6% and 9.7%, respectively. Market share of Philip Morris was flat at 0.7%. The total industry fine cut category of 3.1 billion cigarette equivalent units increased by 15.1%. PMI's market share of the category increased by 1.1 points to 12.7%.

EASTERN EUROPE, MIDDLE EAST & AFRICA REGION (EEMA)

2013 Second-Quarter

Net revenues of $2.2 billion increased by 1.4%. Excluding unfavorable currency of $49 million, net revenues increased by 3.7%, driven by favorable pricing of $176 million, principally in Russia, Turkey and Ukraine, partly offset by unfavorable volume/mix of $97 million, mainly due to Russia and Ukraine.

Operating companies income of $945 million decreased by 0.3%. Excluding unfavorable currency of $28 million, operating companies income increased by 2.6%, due primarily to higher pricing, partly offset by unfavorable volume/mix of $68 million and higher costs, principally related to the annualization of investments in business infrastructure in Russia.

Adjusted operating companies income decreased by 0.3%, as shown in the table below and detailed on Schedule 11. Adjusted operating companies income, excluding unfavorable currency, increased by 2.6%.

EEMA Operating Companies Income ($ Millions)
	Second-Quarter						Six Months Year-To-Date
	2013		2012		Change		2013		2012		Change
Reported OCI	$945		$948		(0.3	)%	$1,880		$1,758		6.9	%
Asset impairment & exit costs	0		0				0		0
Adjusted OCI	$945		$948		(0.3	)%	$1,880		$1,758		6.9	%
Adjusted OCI Margin*	43.3	%	44.1	%	(0.8) p.p.		44.5	%	44.1	%	0.4 p.p.
*Margins are calculated as adjusted OCI, divided by net revenues, excluding excise taxes.

Adjusted operating companies income margin, excluding unfavorable currency, decreased by 0.5 points to 43.6%, as detailed on Schedule 11.

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PMI's cigarette shipment volume of 76.3 billion units decreased by 3.6%, mainly due to Russia and Turkey, partly offset by the Middle East and North Africa.

PMI's cigarette shipment volume of premium brands decreased by 1.8%, due principally to Marlboro, down by 4.1% to 21.0 billion units, partly offset by Parliament, up by 4.0% to 8.4 billion units.

EEMA Key Market Commentaries

In Russia, PMI's shipment volume of 23.0 billion units decreased by 11.4%, mainly due to the impact of tax-driven price increases and the reversal of favorable distributor inventory movements in the first quarter of 2013, and the weakening of the economy. Shipment volume of PMI's premium portfolio decreased by 10.6%, mainly due to Marlboro, down by 31.5%, partly offset by Parliament, up by 1.1%. In the mid-price segment, shipment volume decreased by 14.1%, mainly due to Chesterfield, down by 21.6%, partially offset by L&M, up by 2.7%. In the low-price segment, shipment volume decreased by 10.4%, mainly due to Bond Street, Optima and Apollo Soyuz, down by 10.1%, 17.3% and 20.0%, respectively, partially offset by Next, up by 2.2%. PMI's May quarter-to-date market share of 25.9%, as measured by Nielsen, was down by 0.2 points, reflecting the unfavorable impact of the timing of competitive brand price increases at retail. Market share of Parliament increased by 0.2 points to 3.3%, Marlboro decreased by 0.2 points to 1.7%, L&M increased by 0.2 points to 2.7%, Chesterfield decreased by 0.4 points to 3.0%, Bond Street increased by 0.2 points to 6.5%, and Next increased by 0.2 points to 3.1%.

In Turkey, the total cigarette market of 22.8 billion units decreased by an estimated 11%, primarily reflecting the renewed growth of illicit trade. PMI's shipment volume of 11.7 billion units decreased by 7.7%. PMI's May quarter-to-date market share, as measured by Nielsen, decreased by 0.5 points to 44.8%, mainly due to low-price L&M, down by 1.0 point to 7.6%, and Marlboro, down by 0.3 points to 8.7%, partly offset by premium Parliament andmid-price Muratti,up by 0.9 and 0.4 points to 9.6% and 7.0%, respectively.

In Ukraine, the total cigarette market of 20.7 billion units decreased by an estimated 10%, reflecting the impact of tax-driven price increases in the first quarter of 2013 and an increase in illicit trade. Although PMI's shipment volume of 6.8 billion units decreased by 9.3%, PMI's May quarter-to-date market share, as measured by Nielsen, increased by 1.3 points to 33.5%, mainly due to growth from PMI's low-price segment brands of Bond Street, Optima and President. Share for premium Parliament increased by 0.1 point to 3.3%. Share of Marlboro decreased by 0.3 points to 5.6%.

ASIA REGION

2013 Second-Quarter

Net revenues of $2.7 billion decreased by 5.7%, including unfavorable currency of $141 million. Excluding currency, net revenues decreased by 0.8%, due to unfavorable volume/mix of $211 million, primarily in Japan and the Philippines, partially offset by favorable pricing of $189 million, principally in Australia, Indonesia and the Philippines.

Operating companies income of $1.1 billion decreased by 17.3%, including unfavorable currency of $112 million. Excluding currency, operating companies income decreased by 9.1%, due primarily to

9

unfavorable volume/mix of $180 million, higher manufacturing costs, principally in Indonesia, and increased brand support in the Philippines, partly offset by favorable pricing.

Adjusted operating companies income decreased by 16.9% as shown in the table below and detailed on Schedule 11. Adjusted operating companies income, excluding unfavorable currency, decreased by 8.7%.

Asia Operating Companies Income ($ Millions)
	Second-Quarter						Six Months Year-To-Date
	2013		2012		Change		2013		2012		Change
Reported OCI	$1,128		$1,364		(17.3	)%	$2,470		$2,771		(10.9	)%
Asset impairment & exit costs	(5	)	0				(8	)	0
Adjusted OCI	$1,133		$1,364		(16.9	)%	$2,478		$2,771		(10.6	)%
Adjusted OCI Margin*	42.1	%	47.8	%	(5.7) p.p.		45.2	%	49.2	%	(4.0) p.p.
*Margins are calculated as adjusted OCI, divided by net revenues, excluding excise taxes.

Adjusted operating companies income margin, excluding unfavorable currency, decreased by 3.9 points to 43.9%, as detailed on Schedule 11, primarily reflecting the impact of unfavorable volume/mix and higher costs.

PMI's cigarette shipment volume of 80.6 billion units decreased by 3.5%, due primarily to the decrease in the Philippines. Excluding the Philippines, PMI's cigarette shipment volume increased by 1.5%, driven mainly by Indonesia.

Shipment volume of Marlboro of 18.4 billion units decreased by 12.7%, or by 6.1% excluding the Philippines, due mainly to the timing of inventory movements in Japan.

Asia Key Market Commentaries

In Indonesia, the total cigarette market of 78.3 billion units increased by 3.5%. The total cigarette market is estimated to increase by approximately 4% for the full-year 2013. PMI's shipment volume in the quarter of 28.2 billion units increased by 6.0%. PMI's market share increased by 0.9 points to 36.1%, driven notably by machine-made, low-tar low-nicotine (LTLN) Sampoerna A in the premium segment, up by 0.3 points to 14.0%, and machine-made, LTLN mid-price U Mild, up by 1.3 points to 4.3%. Market share of the hand-rolled, full-flavor Dji Sam Soe in the premium segment decreased by 1.0 point to 6.8%. Marlboro's market share increased by 0.7 points to 5.4% and its share of the “white” cigarettes segment, representing 7.1% of the total cigarette market, increased by 5.9 points to 76.2%.

In Japan, the total cigarette market of 48.4 billion units decreased by 2.0%. PMI's shipment volume of 14.1 billion units decreased by 10.2%, principally due to the timing of inventory movements. PMI's market share decreased by 0.9 points to 26.9%, reflecting continued significant product introductions and promotional activities by PMI's principal competitor. Although resilient since the beginning of the year, Marlboro's market share decreased by 0.3 points to 12.2% in the quarter. Share of Lark and Philip Morris in the quarter decreased by 0.3 and 0.1 points to 8.1% and 2.2%, respectively, partially offset by Virginia S., up by0.1 point to 2.1%.

10

In Korea, the total cigarette market of 22.0 billion units decreased by 3.5%. Although PMI's shipment volume of 4.3 billion units decreased by 0.4%, market share increased by 0.7 points to 19.5%, reflecting continued stabilization since PMI's price increases of February 2012. Market share of Marlboro,Parliament and Virginia S. in the quarter increased by 0.1, 0.8 and 0.1 points to 7.8%, 7.0% and 4.1%, respectively.

In the Philippines, PMI's shipment volume of 19.1 billion units decreased by 16.5%, primarily reflecting the unfavorable impact of the disruptive excise tax increase in January 2013, which resulted in a recommended retail selling price increase for premium Marlboro and low-price Fortune of approximately 60% and 70%, respectively. Industry cigarette volume of 23.1 billion units was estimated to have decreased by 7.0%, reflecting a partial, but insufficient, improvement in declared tax-paid volume by local manufacturers and government tax enforcement. PMI's market share in the quarter decreased by 9.5 points to 82.9%, primarily due to down-trading to competitive brands. Marlboro's market share decreased by 5.9 points to 14.7%. Share of low-price Fortune decreased by 18.0 points to 32.8%, partly offset by gains from PMI's other local low-price brands. PMI's cigarette shipments are estimated to decline by 20-25% for the full-year 2013, as the availability of non-tax paid domestic volume remains a critical issue.

LATIN AMERICA & CANADA REGION

2013 Second-Quarter

Net revenues of $838 million increased by 1.1%, including unfavorable currency of $28 million. Excluding currency, net revenues increased by 4.5%, driven by favorable pricing of $57 million, principally in Argentina, Brazil, Canada and Mexico, partially offset by unfavorable volume/mix of $20 million.

Operating companies income of $255 million increased by 2.4%, including unfavorable currency of $8 million. Excluding currency, operating companies income increased by 5.6%, primarily driven by favorable pricing, partially offset by unfavorable volume/mix of $24 million.

Adjusted operating companies income decreased by 0.8% as shown in the table below and detailed on Schedule 11. Adjusted operating companies income, excluding unfavorable currency, increased by 2.3%.

Latin America & Canada Operating Companies Income ($ Millions)
	Second-Quarter						Six Months Year-To-Date
	2013		2012		Change		2013		2012		Change
Reported OCI	$255		$249		2.4	%	$509		$486		4.7	%
Asset impairment & exit costs	0		(8	)			0		(16	)
Adjusted OCI	$255		$257		(0.8	)%	$509		$502		1.4	%
Adjusted OCI Margin*	30.4	%	31.0	%	(0.6) p.p.		31.4	%	31.1	%	0.3 p.p.
*Margins are calculated as adjusted OCI, divided by net revenues, excluding excise taxes.

Adjusted operating companies income margin, excluding unfavorable currency, decreased by 0.6 points to 30.4%, as detailed on Schedule 11.

PMI's cigarette shipment volume of 23.3 billion units decreasedby 2.4%, principally due to a lower total market in Brazil following the May 2012 and January 2013 tax-driven price increases and a lower total

11

market in Argentina, partly offset by a higher total market in Mexico. Shipment volume of Marlboro of 9.1 billion units decreased by 1.5%, mainly reflecting a lower total market in Argentina and Brazil.

Latin America & Canada Key Market Commentaries

In Argentina, the total cigarette market of 10.1 billion units decreased by 4.7%, largely due to the weakening of the economy. PMI's cigarette shipment volume of 7.6 billion units decreased by 3.9%. PMI's market share increased by 0.5 points to 75.2%, driven by mid-price Philip Morris, up by 1.6 points to 40.9%, partly offset by low-price Next, down by0.4 points to 2.8%. Share of Marlboro decreased by 0.1 point to 23.8%.

In Canada, the total tax-paid cigarette market of 7.5 billion units decreased by 0.5%. PMI's cigarette shipment volume of 2.8 billion units increased by 1.4% and market share increased by 0.1 point to 37.4%, with premium brands Benson & Hedges and Belmont up by 0.1 and 0.2 points to 2.5% and 2.6%, respectively, and low-price brand Next up by 1.8 points to 9.7%, partly offset by mid-price Number 7 and low-price Accord, down by 0.3 and 0.4 points, to 4.3% and 3.0%, respectively. Market share of mid-price Canadian Classics was flat at 10.1%.

In Mexico, the total cigarette market of 8.3 billion units increased by 6.1%, primarily reflecting additional selling days in the quarter. PMI's cigarette shipment volume of 6.0 billion units increased by 5.6%. PMI's market share decreased by 0.4 points to 72.6%, reflecting unfavorable segment mix. Share of premium Marlboro and Benson & Hedges decreased by 1.7 and 0.8 share points to 51.5% and 5.6%, respectively, partly offset by market share of low-price Delicados, the second best-selling brand in the market, up by 1.1 points to 11.2%, and gains from PMI's other local low-price brands.

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 more than 180 markets. In 2012, the company held an estimated 16.3% share of the total international cigarette market outside of the U.S., or 28.8% excluding the People's Republic of China and the U.S. For more information, see www.pmi.com.

Forward-Looking and Cautionary Statements

This press release contains projections of future results and other forward-looking statements. Achievement of projected results is subject to risks, uncertainties and inaccurate assumptions. In the event that risks or uncertainties materialize, or underlying assumptions prove inaccurate, actual results could vary materially from those contained in such forward-looking statements. Pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, PMI is identifying important factors that, individually or in the aggregate, could cause actual results and outcomes to differ materially from those contained in any forward-looking statements made by PMI.

PMI's business risks include: significant increases in cigarette-related taxes; the imposition of discriminatory excise tax structures; fluctuations in customer inventory levels due to increases in product taxes and prices; increasing marketing and regulatory restrictions, often with the goal of reducing or

12

preventing the use of tobacco products; health concerns relating to the use of tobacco products and exposure to environmental tobacco smoke; litigation related to tobacco use; intense competition; the effects of global and individual country economic, regulatory and political developments; changes in adult smoker behavior; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations; adverse changes in applicable corporate tax laws; adverse changes in the cost and quality of tobacco and other agricultural products and raw materials; and the integrity of its information systems. PMI's future profitability may also be adversely affected should it be unsuccessful in its attempts to produce products with the potential to reduce the risk of smoking-related diseases; if it is unable to successfully introduce new products, promote brand equity, enter new markets or improve its margins through increased prices and productivity gains; if it is unable to expand its brand portfolio internally or through acquisitions and the development of strategic business relationships; or if it is unable to attract and retain the best global talent.

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 March 31, 2013. PMI cautions that the foregoing list of important factors is not a complete discussion of all potential risks and uncertainties. PMI does not undertake to update any forward-looking statement that it may make from time to time, except in the normal course of its public disclosure obligations.

###

13

`

Schedule 1
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Condensed Statements of Earnings
For the Quarters Ended June 30,
($ in millions, except per share data)
(Unaudited)
	2013		2012		% Change
Net revenues	$	20,483	$	20,037	2.2		%
Cost of sales	2,701		2,666		1.3		%
Excise taxes on products (1)	12,566		11,917		5.4		%
Gross profit	5,216		5,454		(4.4	)	%
Marketing, administration and research costs	1,801		1,768
Asset impairment and exit costs	5		8
Operating companies income	3,410		3,678		(7.3	)	%
Amortization of intangibles	24		25
General corporate expenses	54		49
Operating income	3,332		3,604		(7.5	)	%
Interest expense, net	246		209
Earnings before income taxes	3,086		3,395		(9.1	)	%
Provision for income taxes	892		988		(9.7	)	%
Net earnings	2,194		2,407		(8.8	)	%
Net earnings attributable to noncontrolling interests	70		90
Net earnings attributable to PMI	$	2,124	$	2,317	(8.3	)	%
Per share data:(2)
Basic earnings per share	$	1.30	$	1.36	(4.4	)	%
Diluted earnings per share	$	1.30	$	1.36	(4.4	)	%
(1) The segment detail of excise taxes on products sold for the quarters ended June 30, 2013 and 2012 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 June 30, 2013 and 2012 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 June 30,
($ in millions)
(Unaudited)
			Net Revenues excluding Excise Taxes
			European Union			EEMA			Asia			Latin America & Canada			Total
	2013	Net Revenues (1)	$	7,245		$	5,377		$	5,381		$	2,480		$	20,483
		Excise Taxes on Products	(5,039		)	(3,196		)	(2,689		)	(1,642		)	(12,566		)
		Net Revenues excluding Excise Taxes	2,206			2,181			2,692			838			7,917
	2012	Net Revenues	$	7,280		$	5,062		$	5,317		$	2,378		$	20,037
		Excise Taxes on Products	(4,995		)	(2,911		)	(2,462		)	(1,549		)	(11,917		)
		Net Revenues excluding Excise Taxes	2,285			2,151			2,855			829			8,120
	Variance	Currency	(25		)	(49		)	(141		)	(28		)	(243		)
		Acquisitions	—			—			—			—			—
		Operations	(54		)	79			(22		)	37			40
		Variance Total	(79		)	30			(163		)	9			(203		)
		Variance Total (%)	(3.5		)%	1.4		%	(5.7		)%	1.1		%	(2.5		)%
		Variance excluding Currency	(54		)	79			(22		)	37			40
		Variance excluding Currency (%)	(2.4		)%	3.7		%	(0.8		)%	4.5		%	0.5		%
		Variance excluding Currency & Acquisitions	(54		)	79			(22		)	37			40
		Variance excluding Currency & Acquisitions (%)	(2.4		)%	3.7		%	(0.8		)%	4.5		%	0.5		%
	(1) 2013 Currency decreased net revenues as follows:
		European Union	$	(87	)
		EEMA	(95		)
		Asia	(194		)
		Latin America & Canada	(103		)
			$	(479	)

`

														Schedule 3
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Selected Financial Data by Business Segment
For the Quarters Ended June 30,
($ in millions)
(Unaudited)
	Operating Companies Income
		European Union			EEMA			Asia			Latin America & Canada			Total
2013		$	1,082		$	945		$	1,128		$	255		$	3,410
2012		1,117			948			1,364			249			3,678
% Change		(3.1		)%	(0.3		)%	(17.3		)%	2.4		%	(7.3		)%
Reconciliation:
For the quarter ended June 30, 2012		$	1,117		$	948		$	1,364		$	249		$	3,678
2012 Asset impairment and exit costs		—			—			—			8			8
2013 Asset impairment and exit costs		—			—			(5		)	—			(5		)
Acquired businesses		—			—			—			—			—
Currency		2			(28		)	(112		)	(8		)	(146		)
Operations		(37		)	25			(119		)	6			(125		)
For the quarter ended June 30, 2013		$	1,082		$	945		$	1,128		$	255		$	3,410

`

Schedule 4
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Diluted Earnings Per Share
For the Quarters Ended June 30,
($ in millions, except per share data)
(Unaudited)
			Diluted
			E.P.S.
2013 Diluted Earnings Per Share			$	1.30		(1)
2012 Diluted Earnings Per Share			$	1.36		(1)
Change			$	(0.06	)
% Change			(4.4		)	%
Reconciliation:
2012 Diluted Earnings Per Share			$	1.36		(1)
Special Items:
2012 Asset impairment and exit costs			—
2012 Tax items			—
2013 Asset impairment and exit costs			—
2013 Tax items			—
Currency			(0.07		)
Interest			(0.02		)
Change in tax rate			—
Impact of lower shares outstanding and share-based payments			0.06
Operations			(0.03		)
2013 Diluted Earnings Per Share			$	1.30		(1)
(1) Basic and diluted EPS were calculated using the following (in millions):
	Q2 2013		Q2 2012
Net earnings attributable to PMI	$	2,124	$	2,317
Less distributed and undistributed earnings attributable
to share-based payment awards	11		12
Net earnings for basic and diluted EPS	$	2,113	$	2,305
Weighted-average shares for basic and diluted EPS	1,631		1,701

`

Schedule 5
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Condensed Statements of Earnings
For the Six Months Ended June 30,
($ in millions, except per share data)
(Unaudited)
	2013		2012		% Change
Net revenues	$	39,010	$	38,059	2.5		%
Cost of sales	5,190		5,108		1.6		%
Excise taxes on products (1)	23,509		22,491		4.5		%
Gross profit	10,311		10,460		(1.4	)	%
Marketing, administration and research costs	3,424		3,282
Asset impairment and exit costs	8		16
Operating companies income	6,879		7,162		(4.0	)	%
Amortization of intangibles	48		49
General corporate expenses	112		106
Operating income	6,719		7,007		(4.1	)	%
Interest expense, net	482		422
Earnings before income taxes	6,237		6,585		(5.3	)	%
Provision for income taxes	1,825		1,946		(6.2	)	%
Net earnings	4,412		4,639		(4.9	)	%
Net earnings attributable to noncontrolling interests	163		161
Net earnings attributable to PMI	$	4,249	$	4,478	(5.1	)	%
Per share data:(2)
Basic earnings per share	$	2.58	$	2.60	(0.8	)	%
Diluted earnings per share	$	2.58	$	2.60	(0.8	)	%
(1) The segment detail of excise taxes on products sold for the six months ended June 30, 2013 and 2012 is shown on Schedule 6.
(2)  Net earnings and weighted-average shares used in the basic and diluted earnings per share computations for the six months ended June 30, 2013 and 2012 are shown on Schedule 8, Footnote 1.

`

															Schedule 6
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Selected Financial Data by Business Segment
For the Six Months Ended June 30,
($ in millions)
(Unaudited)
			Net Revenues excluding Excise Taxes
			European Union			EEMA			Asia			Latin America & Canada			Total
	2013	Net Revenues (1)	$	13,768		$	9,800		$	10,632		$	4,810		$	39,010
		Excise Taxes on Products	(9,592		)	(5,576		)	(5,150		)	(3,191		)	(23,509		)
		Net Revenues excluding Excise Taxes	4,176			4,224			5,482			1,619			15,501
	2012	Net Revenues	$	13,750		$	9,131		$	10,494		$	4,684		$	38,059
		Excise Taxes on Products	(9,412		)	(5,145		)	(4,862		)	(3,072		)	(22,491		)
		Net Revenues excluding Excise Taxes	4,338			3,986			5,632			1,612			15,568
	Variance	Currency	2			(39		)	(262		)	(47		)	(346		)
		Acquisitions	—			—			—			—			—
		Operations	(164		)	277			112			54			279
		Variance Total	(162		)	238			(150		)	7			(67		)
		Variance Total (%)	(3.7		)%	6.0		%	(2.7		)%	0.4		%	(0.4		)%
		Variance excluding Currency	(164		)	277			112			54			279
		Variance excluding Currency (%)	(3.8		)%	6.9		%	2.0		%	3.3		%	1.8		%
		Variance excluding Currency & Acquisitions	(164		)	277			112			54			279
		Variance excluding Currency & Acquisitions (%)	(3.8		)%	6.9		%	2.0		%	3.3		%	1.8		%
	(1) 2013 Currency increased (decreased) net revenues as follows:
		European Union	$	16
		EEMA	(56		)
		Asia	(356		)
		Latin America & Canada	(189		)
			$	(585	)

`

														Schedule 7
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Selected Financial Data by Business Segment
For the Six Months Ended June 30,
($ in millions)
(Unaudited)
	Operating Companies Income
		European Union			EEMA			Asia			Latin America & Canada			Total
2013		$	2,020		$	1,880		$	2,470		$	509		$	6,879
2012		2,147			1,758			2,771			486			7,162
% Change		(5.9		)%	6.9		%	(10.9		)%	4.7		%	(4.0		)%
Reconciliation:
For the six months ended June 30, 2012		$	2,147		$	1,758		$	2,771		$	486		$	7,162
2012 Asset impairment and exit costs		—			—			—			16			16
2013 Asset impairment and exit costs		—			—			(8		)	—			(8		)
Acquired businesses		—			—			—			—			—
Currency		(10		)	(31		)	(215		)	(12		)	(268		)
Operations		(117		)	153			(78		)	19			(23		)
For the six months ended June 30, 2013		$	2,020		$	1,880		$	2,470		$	509		$	6,879

`

						Schedule 8
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Diluted Earnings Per Share
For the Six Months Ended June 30,
($ in millions, except per share data)
(Unaudited)
			Diluted
			E.P.S.
2013 Diluted Earnings Per Share			$	2.58		(1)
2012 Diluted Earnings Per Share			$	2.60		(1)
Change			$	(0.02	)
% Change			(0.8		)	%
Reconciliation:
2012 Diluted Earnings Per Share			$	2.60		(1)
Special Items:
2012 Asset impairment and exit costs			0.01
2012 Tax items			—
2013 Asset impairment and exit costs			—
2013 Tax items			(0.01		)
Currency			(0.14		)
Interest			(0.03		)
Change in tax rate			0.01
Impact of lower shares outstanding and share-based payments			0.11
Operations			0.03
2013 Diluted Earnings Per Share			$	2.58		(1)
(1)   Basic and diluted EPS were calculated using the following (in millions):
	YTD June 2013		YTD June 2012
Net earnings attributable to PMI	$	4,249	$	4,478
Less distributed and undistributed earnings attributable
to share-based payment awards	23		24
Net earnings for basic and diluted EPS	$	4,226	$	4,454
Weighted-average shares for basic and diluted EPS	$	1,639	$	1,710

`

Schedule 9
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Condensed Balance Sheets
($ in millions, except ratios)
(Unaudited)
	June 30,				December 31,
	2013				2012
Assets
Cash and cash equivalents	$	3,586			$	2,983
All other current assets	13,169				13,607
Property, plant and equipment, net	6,396				6,645
Goodwill	9,529				9,900
Other intangible assets, net	3,472				3,619
Other assets	988				916
Total assets	$	37,140			$	37,670
Liabilities and Stockholders' (Deficit) Equity
Short-term borrowings	$	2,684			$	2,419
Current portion of long-term debt	1,256				2,781
All other current liabilities	10,766				11,816
Long-term debt	21,559				17,639
Deferred income taxes	1,842				1,875
Other long-term liabilities	2,962				2,993
Total liabilities	41,069				39,523
Redeemable noncontrolling interest	1,296				1,301
Total PMI stockholders' deficit	(5,466		)		(3,476		)
Noncontrolling interests	241				322
Total stockholders' deficit	(5,225		)		(3,154		)
Total liabilities and stockholders' (deficit) equity	$	37,140			$	37,670
Total debt	$	25,499			$	22,839
Total debt to EBITDA	1.76			(1)	1.55			(1)
Net debt to EBITDA	1.52			(1)	1.35			(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 June 30,
($ in millions)
(Unaudited)
2013																2012						% 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
$	7,245	$	5,039	$	2,206	$	(25	)	$	2,231	$	—	$	2,231	European Union	$	7,280	$	4,995	$	2,285	(3.5	)%	(2.4	)%	(2.4	)%
5,377		3,196		2,181		(49		)	2,230		—		2,230		EEMA	5,062		2,911		2,151		1.4	%	3.7	%	3.7	%
5,381		2,689		2,692		(141		)	2,833		—		2,833		Asia	5,317		2,462		2,855		(5.7	)%	(0.8	)%	(0.8	)%
2,480		1,642		838		(28		)	866		—		866		Latin America & Canada	2,378		1,549		829		1.1	%	4.5	%	4.5	%
$	20,483	$	12,566	$	7,917	$	(243	)	$	8,160	$	—	$	8,160	PMI Total	$	20,037	$	11,917	$	8,120	(2.5	)%	0.5	%	0.5	%
2013																2012						% 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
$	1,082					$	2		$	1,080	$	—	$	1,080	European Union					$	1,117	(3.1	)%	(3.3	)%	(3.3	)%
945						(28		)	973		—		973		EEMA					948		(0.3	)%	2.6	%	2.6	%
1,128						(112		)	1,240		—		1,240		Asia					1,364		(17.3	)%	(9.1	)%	(9.1	)%
255						(8		)	263		—		263		Latin America & Canada					249		2.4	%	5.6	%	5.6	%
$	3,410					$	(146	)	$	3,556	$	—	$	3,556	PMI Total					$	3,678	(7.3	)%	(3.3	)%	(3.3	)%

`

`

																															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 June 30,
($ in millions)
(Unaudited)
2013																			2012								% 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 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
$	1,082	$	—		$	1,082		$	2		$	1,080	$	—	$	1,080		European Union	$	1,117	$	—		$	1,117		(3.1	)%	(3.3	)%	(3.3	)%
945		—			945			(28		)	973		—		973			EEMA	948		—			948			(0.3	)%	2.6	%	2.6	%
1,128		(5		)	1,133			(112		)	1,245		—		1,245			Asia	1,364		—			1,364			(16.9	)%	(8.7	)%	(8.7	)%
255		—			255			(8		)	263		—		263			Latin America & Canada	249		(8		)	257			(0.8	)%	2.3	%	2.3	%
$	3,410	$	(5	)	$	3,415		$	(146	)	$	3,561	$	—	$	3,561		PMI Total	$	3,678	$	(8	)	$	3,686		(7.4	)%	(3.4	)%	(3.4	)%
2013																			2012								% 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
$	1,080	$	2,231		48.4		%				$	1,080	$	2,231	48.4		%	European Union	$	1,117	$	2,285		48.9		%			(0.5	)	(0.5	)
973		2,230			43.6		%				973		2,230		43.6		%	EEMA	948		2,151			44.1		%			(0.5	)	(0.5	)
1,245		2,833			43.9		%				1,245		2,833		43.9		%	Asia	1,364		2,855			47.8		%			(3.9	)	(3.9	)
263		866			30.4		%				263		866		30.4		%	Latin America & Canada	257		829			31.0		%			(0.6	)	(0.6	)
$	3,561	$	8,160		43.6		%				$	3,561	$	8,160	43.6		%	PMI Total	$	3,686	$	8,120		45.4		%			(1.8	)	(1.8	)
(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 June 30,
(Unaudited)
	2013			2012		% Change
Reported Diluted EPS	$	1.30		$	1.36	(4.4	)%
Adjustments:
Asset impairment and exit costs	—			—
Tax items	—			—
Adjusted Diluted EPS	$	1.30		$	1.36	(4.4	)%
Less:
Currency impact	(0.07		)
Adjusted Diluted EPS, excluding Currency	$	1.37		$	1.36	0.7	%

`

						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 June 30,
(Unaudited)
	2013			2012		% Change
Reported Diluted EPS	$	1.30		$	1.36	(4.4	)%
Less:
Currency impact	(0.07		)
Reported Diluted EPS, excluding Currency	$	1.37		$	1.36	0.7	%

`

Schedule 14
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Reconciliation of Non-GAAP Measures
Adjustments for the Impact of Currency and Acquisitions
For the Six Months Ended June 30,
($ in millions)
(Unaudited)
2013																	2012						% 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
$	13,768	$	9,592	$	4,176	$	2		$	4,174	7,046	$	—	$	4,174	European Union	$	13,750	$	9,412	$	4,338	(3.7	)%	(3.8	)%	(3.8	)%
9,800		5,576		4,224		(39		)	4,263		6,604	—		4,263		EEMA	9,131		5,145		3,986		6.0	%	6.9	%	6.9	%
10,632		5,150		5,482		(262		)	5,744		8,452	—		5,744		Asia	10,494		4,862		5,632		(2.7	)%	2.0	%	2.0	%
4,810		3,191		1,619		(47		)	1,666		2,611	—		1,666		Latin America & Canada	4,684		3,072		1,612		0.4	%	3.3	%	3.3	%
$	39,010	$	23,509	$	15,501	$	(346	)	$	15,847	24,713	$	—	$	15,847	PMI Total	$	38,059	$	22,491	$	15,568	(0.4	)%	1.8	%	1.8	%
2013																	2012						% 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
$	2,020					$	(10	)	$	2,030	3,538	$	—	$	2,030	European Union					$	2,147	(5.9	)%	(5.4	)%	(5.4	)%
1,880						(31		)	1,911		2,988	—		1,911		EEMA					1,758		6.9	%	8.7	%	8.7	%
2,470						(215		)	2,685		4,021	—		2,685		Asia					2,771		(10.9	)%	(3.1	)%	(3.1	)%
509						(12		)	521		812	—		521		Latin America & Canada					486		4.7	%	7.2	%	7.2	%
$	6,879					$	(268	)	$	7,147	11,359	$	—	$	7,147	PMI Total					$	7,162	(4.0	)%	(0.2	)%	(0.2	)%

`

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 Six Months Ended June 30,
($ in millions)
(Unaudited)
2013																			2012								% 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 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
$	2,020	$	—		$	2,020		$	(10	)	$	2,030	$	—	$	2,030		European Union	$	2,147	$	—		$	2,147		(5.9	)%	(5.4	)%	(5.4	)%
1,880		—			1,880			(31		)	1,911		—		1,911			EEMA	1,758		—			1,758			6.9	%	8.7	%	8.7	%
2,470		(8		)	2,478			(215		)	2,693		—		2,693			Asia	2,771		—			2,771			(10.6	)%	(2.8	)%	(2.8	)%
509		—			509			(12		)	521		—		521			Latin America & Canada	486		(16		)	502			1.4	%	3.8	%	3.8	%
$	6,879	$	(8	)	$	6,887		$	(268	)	$	7,155	$	—	$	7,155		PMI Total	$	7,162	$	(16	)	$	7,178		(4.1	)%	(0.3	)%	(0.3	)%
2013																			2012								% 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
$	2,030	$	4,174		48.6		%				$	2,030	$	4,174	48.6		%	European Union	$	2,147	$	4,338		49.5		%			(0.9	)	(0.9	)
1,911		4,263			44.8		%				1,911		4,263		44.8		%	EEMA	1,758		3,986			44.1		%			0.7		0.7
2,693		5,744			46.9		%				2,693		5,744		46.9		%	Asia	2,771		5,632			49.2		%			(2.3	)	(2.3	)
521		1,666			31.3		%				521		1,666		31.3		%	Latin America & Canada	502		1,612			31.1		%			0.2		0.2
$	7,155	$	15,847		45.2		%				$	7,155	$	15,847	45.2		%	PMI Total	$	7,178	$	15,568		46.1		%			(0.9	)	(0.9	)
(1) 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 Six Months Ended June 30,
(Unaudited)
	2013			2012		% Change
Reported Diluted EPS	$	2.58		$	2.60	(0.8	)%
Adjustments:
Asset impairment and exit costs	—			0.01
Tax items	0.01			—
Adjusted Diluted EPS	$	2.59		$	2.61	(0.8	)%
Less:
Currency impact	(0.14		)
Adjusted Diluted EPS, excluding Currency	$	2.73		$	2.61	4.6	%

`

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 Six Months Ended June 30,
(Unaudited)
	2013			2012		% Change
Reported Diluted EPS	$	2.58		$	2.60	(0.8	)%
Less:
Currency impact	(0.14		)
Reported Diluted EPS, excluding Currency	$	2.72		$	2.60	4.6	%

`

							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
	June 30,						December 31,
	2013						2012
	July ~ December		January ~ June		12 months
	2012		2013		rolling
Earnings before income taxes	$	6,402	$	6,237	$	12,639	$	12,987
Interest expense, net	437		482		919		859
Depreciation and amortization	449		441		890		898
EBITDA	$	7,288	$	7,160	$	14,448	$	14,744
					June 30,		December 31,
					2013		2012
Short-term borrowings					$	2,684	$	2,419
Current portion of long-term debt					1,256		2,781
Long-term debt					21,559		17,639
Total Debt					$	25,499	$	22,839
Less: Cash and cash equivalents					3,586		2,983
Net Debt					$	21,913	$	19,856
Ratios
Total Debt to EBITDA					1.76		1.55
Net Debt to EBITDA					1.52		1.35

`

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 Six Months Ended June 30,
($ in millions)
(Unaudited)
	For the Quarters Ended						For the Six Months Ended
	June 30,						June 30,
	2013		2012		% Change		2013			2012		% Change
Net cash provided by operating activities (a)	$	3,137	$	3,480	(9.9	)%	$	4,500		$	5,378	(16.3	)%
Less:
Capital expenditures	280		249				520			476
Free cash flow	$	2,857	$	3,231	(11.6	)%	$	3,980		$	4,902	(18.8	)%
Less:
Currency impact	241						(21		)
Free cash flow, excluding currency	$	2,616	$	3,231	(19.0	)%	$	4,001		$	4,902	(18.4	)%
	For the Quarters Ended						For the Six Months Ended
	June 30,						June 30,
	2013		2012		% Change		2013			2012		% Change
Net cash provided by operating activities (a)	$	3,137	$	3,480	(9.9	)%	$	4,500		$	5,378	(16.3	)%
Less:
Currency impact	231						(34		)
Net cash provided by operating activities, excluding currency	$	2,906	$	3,480	(16.5	)%	$	4,534		$	5,378	(15.7	)%
(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)
	2012
Reported Diluted EPS	$	5.17
Adjustments:
Asset impairment and exit costs	0.03
Tax items	0.02
Adjusted Diluted EPS	$	5.22

EX-99.2

Exhibit 99.2

Philip Morris International Inc.

2013 Second-Quarter Results Conference Call

July 18, 2013

NICK ROLLI

(SLIDE 1.)

Welcome. Thank you for joining us. Earlier today, we issued a press release containing detailed information on our 2013 second-quarter results. You may access the release on our web site at www.pmi.com.

(SLIDE 2.)

During our call, we will be talking about results for the second quarter of 2013 and comparing them to the same period in 2012, unless otherwise stated. References to volumes are to 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 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 back of this presentation, which is also posted on our web site.

(SLIDE 3.)

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

It’s now my pleasure to introduce Jacek Olczak, Chief Financial Officer.

Jacek.

JACEK OLCZAK

(SLIDE 4.)

Thank you Nick, and welcome ladies and gentlemen.

As previously foreseen, we had a challenging second quarter. Our adjusted diluted EPS was up slightly, excluding currency. Cigarette volume declined by 3.9%, due principally to lower industry volume in the EU Region, Russia, Turkey and the Philippines, as well as inventory movements in Japan and Russia. Pricing remained strong and we had solid share gains, particularly in the EU Region. However, these were not sufficient to offset the impact of unfavorable volume/mix, additional investments, notably in Indonesia, the Philippines and Russia, and higher clove and tobacco costs in Indonesia.

(SLIDE 5.)

Our business fundamentals remain solid and we are confident in our ability to achieve the ex-currency guidance that we established in February and re-affirmed in May. However, the evolution of tax-paid cigarette industry volume will remain a key variable and our main challenge for the remainder of the year, notably due to the growth of illicit trade.

We anticipate better results during the second half of the year and in particular a strong fourth quarter. This is based on the expectation that our volume declines will moderate as adult smokers adjust to the higher prices implemented earlier this year, our strong market share performance in the EU will continue, margins will improve thanks to recent price increases, and we will have favorability with respect to the timing of investments in infrastructure and marketing.

(SLIDE 6.)

Since April, we have witnessed a sharp decline in the value of certain currencies relating to commodities and emerging markets, such as the Australian Dollar, Indonesian Rupiah, Mexican Peso, Russian Ruble and Turkish Lira. Accordingly, at prevailing exchange rates, our guidance now includes a full-year unfavorable currency impact of approximately 31 cents per share versus 19 cents in our previous guidance.

Our revised reported diluted EPS guidance for 2013 is therefore $5.43 to $5.53, compared to $5.17 in 2012, the change solely reflecting the currency impact. Excluding currency, this continues to represent a growth rate of approximately 10% to 12%, compared to our adjusted diluted EPS of $5.22 in 2012. This is in line with our mid to long-term currency-neutral annual adjusted diluted EPS growth target.

(SLIDE 7.)

Let me now discuss our second-quarter results in more detail.

Our cigarette volume was down by 2.6%, excluding the Philippines. This reflects three main factors. First, cigarette industry volume in the EU Region continued to decline. Second, industry volume in Russia was impacted by the large tax-driven price increases that were implemented at the beginning of this year, as well as a weakening economy. Third, our second quarter volume reflected a difficult comparison due to the inventory replenishment in Japan in Q2, 2012, as well as a lower market share.

There were, however, some favorable developments. First, the decline in our volume in the EU Region of 5.9% was significantly less than the 10.1% decline that occurred in the first quarter. Second, we again achieved volume growth in the Asia Region, excluding the Philippines. Finally, volume growth continued to be strong in the Middle East and North Africa.

(SLIDE 8.)

Pricing continued to be the key driver of our income performance. It helped to offset the impact of unfavorable volume/mix on net revenues, excluding currency. However, adjusted OCI declined by 3.4%, excluding currency. This was due to unfavorable volume/mix, higher production costs, notably in Indonesia where higher clove and tobacco costs have to-date only been partially passed on, investments in business infrastructure and marketing in Russia since the second half of last year, and additional spending in the Philippines in the second quarter of this year to seek to achieve more sustainable price gaps.

(SLIDE 9.)

Our ability to take pricing remained solid, including in the EU Region. During the second quarter, we achieved a favorable pricing variance of $499 million, bringing our June year-to-date total variance to over $1 billion.

In May, we increased retail prices in Germany by €0.20 per pack across our portfolio. In June, we announced a further price increase in Russia of four Rubles per pack across most of our key brands. We have also increased prices recently in Belgium, Canada, Egypt, France, Greece, Indonesia, Spain, Switzerland and Ukraine. These price increases will help us achieve another strong pricing variance during the second half of the year.

(SLIDE 10.)

Let me now review a number of our key geographies, starting with the EU Region.

We have seen some signals that politicians recognize that further spending cuts to try to rein in budget deficits are not going to help Europe turn the corner. However, few concrete measures have been taken so far to stem the continued rise in unemployment, which reached a seasonally adjusted rate of 12.2% in the EU in May this year, compared to 11.3% a year ago.

In the second quarter, Regional cigarette industry volume was down by 8.0% and Regional fine cut industry volume declined by 0.8%. During the quarter, we witnessed continued adult consumer down-trading to lower-priced products, including illicit cigarettes. Due to the continued deterioration in the economic situation and the resulting growth in illicit products, we are now forecasting a decline of cigarette industry volume in the EU Region of 7% to 8% for the full year 2013, compared to our previous forecast of around 6.5%.

While industry volume declined slightly faster than previously foreseen, we were able to achieve a better than expected market share. Consequently, our cigarette volume declined by 5.9% and our fine cut volume grew by 4.3% during the second quarter.

(SLIDE 11.)

On a Regional basis, our cigarette market share increased by 0.7 points in the second quarter to 39.3%. The gain was driven in particular by Marlboro, which grew by 0.5 points to 19.4%, with L&M, Chesterfield and the Philip Morris brand also performing well.

In the fine cut category, we gained 1.2 share points to reach a Regional share of 14.9%, as we continued to successfully extend our cigarette portfolio into this category.

(SLIDE 12.)

Let me now focus on three of the key markets in the EU Region, namely Germany, Italy and Spain.

Cigarette industry volume in Germany declined by 7.0% in the second quarter and fine cut industry volume decreased by 0.7% following price increases in March. However, it should be highlighted that the underlying decline in cigarette industry volume was 2.8% after the elimination of estimated trade inventory fluctuations.

Our cigarette share grew by 1.2 points in the quarter to 37.6%, driven mainly by the strong performance of Marlboro, which achieved its fifth consecutive quarterly year-on-year share increase.

(SLIDE 13.)

The economic downturn in Italy continues with unemployment increasing from 11.9% in February to 12.2% in May. Italian cigarette industry volume declined by 7.2% in the second quarter and fine cut industry volume was down by 10.5%, impacted by the reduction in the price gaps between fine cut products and cigarettes that followed the large fine cut tax increases mid last year.

The underlying fundamentals of our business in Italy remain strong. Our cigarette market share grew by a further 0.4 points in the quarter to 53.3%, thanks to the continued momentum of Marlboro and the success of Philip Morris Selection in the international low-price segment. We also gained share in the fine cut category, with an increase of 7.9 points in the second quarter to 37.9% following the successful introduction of Marlboro fine cut.

We were encouraged by the decision of the Italian Government to postpone to October the one point increase in VAT that was due to be implemented in July. We believe that such a measure would reduce consumer spending and hope that it will be further postponed or cancelled.

(SLIDE 14.)

At the end of last month, the Spanish Government modified the excise tax on tobacco products in order to enhance the predictability and stability of excise tax revenues, which had been undermined by adult cigarette smokers down-trading to lower-taxed alternatives. The specific excise tax on cigarettes was increased while the ad-valorem rate was reduced. At the same time, the relative excise tax burden on fine cut was increased.

The resulting reduction in the price gap between cigarettes and fine cut should help address the recent market imbalance whereby cigarette industry volume declined by 12.0% in the first half of the year, while fine cut industry volume increased by 26.4%. Our cigarette market share was up by 2.3 points in the quarter to 31.9% as Marlboro, Chesterfield and L&M all grew.

(SLIDE 15.)

Let me now turn to the EEMA markets, starting with Russia.

In Russia, we estimate that cigarette industry volume declined by about 6.4% during the second quarter, as adult smokers reacted to tax-driven price increases of 6-7 Rubles, equivalent to9% for above-premium to 22% for super-low price brands, and to a weaker economy. Our volume declined by 11.4% during the same period, as our distributor reversed its first quarter inventory build-up. Through the end of May, our quarterly market share remained resilient and was just 0.2 points lower at 25.9%, despite delayed price increases by several competitors following the January tax increase. Parliament, L&M and Bond Street continued to gain share, but this was more than offset by the decline of Chesterfield.

We expect higher profitability for the full-year 2013 than last year due to our pricing strategy, though we are forecasting that cigarette industry volume will decline 6% to 7% on a full-year basis.

(SLIDE 16.)

In Turkey, there was a resurgence of illicit trade during the second quarter, when it reached over 20% of total consumption due to the Government’s focus on other priorities. As a result, cigarette industry volume declined by an estimated 11%. It is difficult to forecast the full-year performance due to the uncertainty surrounding future trends in illicit trade. However, unless the Government acts quickly to address this issue, cigarette industry volume could be down by as much as 7% to 9%.

The premium and mid-price segments continued to perform well. Our mix improved, driven by the strong momentum of Parliament and Muratti. However, the low-price segment, which includes Lark and L&M priced at 6.50 Turkish Lira per pack, was impacted by the expansion of the super-low 6.00 Lira per pack segment. This led to a slight erosion of our overall market share in the second quarter through May of 0.5 points to 44.8%. We have addressed this issue through the re-launch of Chesterfield at 6.00 Lira per pack.

(SLIDE 17.)

In Asia, we are continuing to strengthen our business, despite the disruptive tax increase in the Philippines. Our cigarette volume grew by 1.5%, excluding the Philippines, with Indonesia the key contributor.

(SLIDE 18.)

In Japan, cigarette industry volume decreased by 2.0% during the second quarter and we continue to forecast a similar decline for the full year. However, due mainly to the inventory replenishment that occurred in Q2, 2012, our volume was 10.2% lower this year.

During the second quarter, we witnessed continued intense competitive activities and the successful launch by Japan Tobacco of its first Mevius capsule variants. Our market share declined by 0.9 points to 26.9%, driven by lower shares for Lark, the Philip Morris brand, and primarily the menthol variants of Marlboro. We expect our market share to remain under pressure in the second half of the year, though we believe that we will make progress over time thanks to the continued resilience of Marlboro and a strong pipeline of innovative new products.

(SLIDE 19.)

Indonesian industry volume grew by 3.5% in the second quarter, while we outperformed the industry with a volume expansion of 6.0%. For the full year, we now expect an industry growth rate of approximately 4%, which, while below the exceptional growth rates of the last two years, is consistent with the historical average.

Our market share grew by 0.9 points to 36.1%, driven by Sampoerna A, U Mild and Marlboro, partly offset by the decline of Dji Sam Soe, which moved above the favorable one thousand Rupiah per cigarette, or “stick”, price point. Premium Sampoerna A is the clear leader in the growing but increasingly price-competitive LTN machine-made kretek segment, U Mild is the leading mid-price brand in this segment, while Marlboro continued to strengthen its position in the “white” cigarette segment, where it reached a segment share of 76% during the second quarter.

(SLIDE 20.)

The final market that I will cover is the Philippines.

The decline in the tax-paid industry volume moderated significantly during the second quarter with volume down by 7.0% despite the continued high prevalence of local non-tax-paid cigarettes that are not included in this data.

We increased our investments behind Fortune and lower-priced brands to seek to achieve more sustainable price gaps. However, despite the very large tax increase, a local competitor’s Mighty and Marvel brands have remained at last year’s attractive price point of 1.0 Peso per stick. This gives the competitor a clear price advantage in a market where stick sales account for about 70% of the volume.

With only limited improvements in tax enforcement, the widespread availability of non-tax-paid domestic cigarettes remains a critical issue. It is driving a greater level of down-trading than originally foreseen and is impacting our volume, our mix and our market share, which declined to 82.9% in the quarter. We are continuing to work with the Bureau of Internal Revenue to achieve a level playing field.

Our volume increased from 13.5 billion units in the first quarter to 19.1 billion units in the second quarter. For the full-year 2013, we forecast that our volume will be down around 20-25%, but that the decline in consumption should be significantly less.

(SLIDE 21.)

In conclusion, we remain confident that we will deliver solid financial results in 2013. Industry volumes remain the key challenge. However, we expect to continue to achieve solid market shares, as well as higher prices.

(SLIDE 22.)

There is no change to our guidance attributable to business reasons. Our revised 2013 reported diluted EPS guidance, reflecting prevailing exchange rates, is $5.43 to $5.53. Our guidance continues to represent a full-year growth rate of approximately 10% to 12%, excluding currency, compared to our 2012 adjusted diluted EPS of $5.22.

We anticipate strong free cash flow growth, excluding currency, in 2013 and remain steadfast in our commitment to reward our shareholders through attractive dividends and substantial share repurchase programs. Our dividend yield last Friday was 3.8% and our target dividend payout ratio remains 65%. During the second quarter, we spent $1.5 billion in share repurchases and have now repurchased close to 25% of the shares outstanding at the time of the spin.

(SLIDE 23.)

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

(SLIDE 24.)

NICK ROLLI

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

1

EX-99.3

2013 Second-Quarter Results July 18, 2013 Exhibit 99.3

2 Introduction ● Unless otherwise stated, we will be talking about results for the second quarter of 2013 and comparing them to the same period in 2012 ● References to PMI volumes refer to 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. 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 webcast slides, which are also posted on our web site

3 Forward-Looking and Cautionary Statements ● This presentation and related discussion contain forward-looking statements. Achievement of projected results is subject to risks, uncertainties and inaccurate assumptions, and PMI is identifying important factors that, individually or in the aggregate, could cause actual results to differ materially from those contained in any forward-looking statements made by PMI ● PMI’s business risks include: significant increases in cigarette-related taxes; the imposition of discriminatory excise tax structures; fluctuations in customer inventory levels due to increases in product taxes and prices; increasing marketing and regulatory restrictions, often with the goal of reducing or preventing the use of tobacco products; health concerns relating to the use of tobacco products and exposure to environmental tobacco smoke; litigation related to tobacco use; intense competition; the effects of global and individual country economic, regulatory and political developments; changes in adult smoker behavior; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations; adverse changes in applicable corporate tax laws; adverse changes in the cost and quality of tobacco and other agricultural products and raw materials; and the integrity of its information systems. PMI’s future profitability may also be adversely affected should it be unsuccessful in its attempts to produce products with the potential to reduce the risk of smoking-related diseases; if it is unable to successfully introduce new products, promote brand equity, enter new markets or improve its margins through increased prices and productivity gains; if it is unable to expand its brand portfolio internally or through acquisitions and the development of strategic business relationships; or if it is unable to attract and retain the best global talent ● 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 March 31, 2013. PMI cautions that the foregoing list of important factors is not a complete discussion of all potential risks and uncertainties. PMI does not undertake to update any forward-looking statement that it may make from time to time, except in the normal course of its public disclosure obligations

Source: PMI Financials 4 Challenging Second Quarter ● Adjusted diluted EPS up slightly, excluding currency ● Cigarette volume declined by 3.9%: - Lower industry volume, notably in the EU Region, Russia, Turkey and the Philippines - Inventory movements in Japan and Russia ● Pricing remained strong ● Shares gains, particularly in the EU Region ● Additional investments, notably in Indonesia, the Philippines and Russia ● Higher clove and tobacco costs in Indonesia

Source: PMI forecasts 5 2013 Outlook: We Expect a Better Second Half ● Business fundamentals remain solid ● Ex-currency guidance unchanged since February ● Evolution of tax-paid cigarette industry volume is a key variable and our main challenge ● We expect a better second half of the year, with a particularly strong fourth quarter: - Volume declines should moderate - Strong market share in the EU - Margins enhanced by recent price increases - Timing of investments in infrastructure and marketing

Source: PMI forecasts and PMI Financials 6 2013 EPS Guidance: Change Solely Reflects the Impact of Currency Volatility ● Currency volatility: our guidance now includes 31 cents in unfavorable currency for the full year (vs. 19 cents previously) ● Revised reported diluted EPS guidance for 2013 is $5.43 to $5.53, compared to $5.17 in 2012, a change solely reflecting the currency impact ● On a currency-neutral basis, our guidance continues to represent a growth rate of approximately 10% to 12%, compared to adjusted diluted EPS of $5.22 in 2012

7 PMI Cigarette Volume Declined ● Cigarette volume declined by 2.6% in Q2, 2013, excluding the Philippines ● Unfavorable volume developments: - Decline in cigarette industry volume in the EU Region - Impact of tax-driven price increases in Russia - Difficult comparison due to the inventory replenishment in Japan in Q2, 2012, and lower market share ● Favorable volume developments: - Our cigarette volume in the EU Region declined by 5.9% in Q2, 2013, compared to a 10.1% decline in Q1, 2013 - Volume growth in Asia, excluding the Philippines - Volume growth in the Middle East and North Africa Source: PMI Financials

8 Q2, 2013 Key Drivers ● Net revenues, excluding currency, stable as favorable pricing offset unfavorable volume/mix ● Adjusted OCI, excluding currency, declined by 3.4% due to: - Unfavorable volume/mix - Higher production costs, notably related to cloves and tobacco in Indonesia - Investments in infrastructure and marketing in Russia - Additional spending in the Philippines to seek to achieve more sustainable price gaps Source: PMI Financials

Note: Variances at OCI level Source: PMI Financials Pricing: Over $1 Billion in the First Half of 2013 9 ● Favorable pricing environment backed by the strength of our broad brand portfolio and supported by a rational excise tax environment ● Prices increased in Germany by €0.20/pack in May ● Price increase of RUB 4/pack announced in Russia in June 499 832 1,030 0 1,100 H1, 2012 H1, 2013 ($ million) Pricing Variance Q2

EU Region: Increasing Unemployment Impacting Cigarette Industry Volume 10 (a) Seasonally adjusted Source: Eurostat, PMI estimates and PMI Financials 11.3 12.2 May 2012 May 2013 EU Unemployment (%)(a) Cigarette and Fine Cut Volume Variances (%) (Q2, 2013 vs. PY) 4.3 (0.8) (5.9) (8.0) PMI Industry PMI Industry Cigarettes Fine Cut 20 20

Source: PMI estimates EU Region: Strong PMI Share Performance 11 38.6 39.3 Q2 2012 Q2 2013 18.9 19.4 Q2 2012 Q2 2013 13.7 14.9 Q2 2012 Q2 2013 Cigarette Shares (%) Total PMI Marlboro +0.7pp Fine Cut Share (%) +1.2pp +0.5pp

12 Germany: Strong Marlboro Share Performance ● Cigarette and fine cut industry volume declined by 7.0% and 0.7%, respectively, in Q2, 2013 ● Underlying cigarette industry decline of 2.8%, after elimination of estimated trade inventory fluctuations ● PMI cigarette share increased by 1.2 points in Q2, 2013, to 37.6% as Marlboro achieved its fifth consecutive quarterly year- on-year share increase 21.8 23.3 10.5 10.8 36.4 37.6 Q2 2012 Q2 2013 Source: PMI estimates Total PMI L&M Marlboro Other PMI Cigarette Share (%)

Italy: PMI Business Fundamentals Remain Strong 13 ● Cigarette industry volume declined by 7.2% in Q2, 2013, as unemployment continued to increase ● PMI underlying business fundamentals remain strong behind the continued momentum of Marlboro ● Government decision to postpone the planned VAT increase until October was a positive development 25.4 25.8 - 19.9 52.9 53.3 30.0 37.9 Q2 2012 Q2 2013 Q2 2012 Q2 2013 Total PMI Other Marlboro Note: VAT stands for Value Added Tax Source: PMI estimates Cigarettes Fine Cut PMI Market Shares (%)

● Modification of excise taxes as of June 29: ● This should help address the market situation whereby cigarette industry volume declined by 12.0% in H1, 2013, while fine cut industry volume increased by 26.4% ● PMI cigarette market share increased by 2.3 points to 31.9% during Q2, 2013 Specific Excise Tax(a) Ad Valorem Rate (%) Minimum Excise Tax (MET)(a)(b) Previous New Previous New Previous New Cigarettes €19.10 €24.10 53.1% 51.0% €123.97 €128.65 Fine Cut 8.00 22.00 41.5 41.5 85.00 96.50 (a) Specific tax and MET are per thousand on cigarettes and per kilo on fine cut (b) There is also an incremental MET for products retailing below certain prices Note: Fine cut includes make your own (MYO), MYO volume tobacco and roll your own (RYO) Source: Ministry of Finance and PMI estimates Spain: Tax Reforms Aimed at Enhancing the Predictability and Stability of Excise Tax Revenues 14

Source: PMI estimates, Nielsen and PMI forecasts Russia: Higher Prices But Lower Volume 15 ● Industry volume declined by an estimated 6.4% in Q2, 2013 ● Volume was impacted by price increases of RUB 6-7/pack (equivalent to 9-22%) in January ● Resilient market share with slight decline attributable to delayed pricing by several competitors following the January tax increase ● Parliament, L&M and Bond Street continue to perform well ● Price increase of RUB 4/pack announced in June ● Our expectation for the full year is 6-7% lower industry volume, but higher profitability 26.1 25.9 QTD May 2012 QTD May 2013 PMI Market Share (%)

Turkey: Lower Share But Improving Mix 16 ● Cigarette industry volume declined by an estimated 11% in Q2, 2013, due to a resurgence of illicit trade ● Our full-year forecast is for an industry volume decline of 7-9% ● PMI brand mix improving thanks to strong performance of Parliament in premium and Muratti in mid-price segment ● PMI total share impacted by growth of TRY 6.00/pack super- low price segment at expense of TRY 6.50/pack low-price brands (a) Total includes 0.2% market share in super-low price segment Source: PMI estimates, PMI forecasts and Nielsen 20.8 19.3 6.6 7.0 17.7 18.3 45.3(a) 44.8(a) QTD May 2012 QTD May 2013 Low Mid Premium PMI Market Share (%)

60.6 61.5 Q2, 2012 Q2, 2013 17 Asia Region: PMI Volume Growth (Excluding the Philippines) PMI Cigarette Volume Growth (%)(a) (a) Excluding the Philippines Source: PMI Financials +1.5%

Source: Tobacco Institute of Japan, PMI forecasts and PMI Financials Japan: Market Share under Pressure 18 ● Cigarette industry volume declined by 2.0% in Q2, 2013 ● We forecast a similar rate of decline for the full-year ● PMI volume decreased by 10.2% in Q2, 2013, due to the inventory replenishment in Q2, 2012, and lower share ● Lark and the Philip Morris brand under pressure ● Marlboro remains resilient and we have a strong pipeline of innovative new products 24.3 27.8 27.5 27.7 27.5 26.9 Q2 2010 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 PMI Market Share (%)

Indonesia: Continued PMI Share Growth 19 ● Industry volume increased by 3.5% in Q2, 2013, while our volume grew by 6.0% ● Industry volume growth for the full-year forecast at approximately 4%, consistent with historical average ● Continued PMI share growth driven by Sampoerna A, U Mild and Marlboro Source: PMI estimates, PMI Financials and PMI forecasts 4.7 5.4 13.7 14.0 7.8 6.8 3.0 4.3 35.2 36.1 Q2 2012 Q2 2013 Sampoerna A Marlboro Other Total PMI PMI Market Share (%) U Mild Dji Sam Soe

Source: PMI estimates, PMI forecasts and PMI Financials Philippines: Volume Decline Has Moderated 20 ● Tax-paid industry volume decline moderated to 7.0% in Q2, 2013 ● The widespread availability of non-tax-paid domestic cigarettes remains a critical issue ● Increased PMI investments to seek to achieve more sustainable price gaps ● Market share declined to 82.9% driven by down-trading to very low-price local competitors ● Forecast PMI volume decline of 20-25% for the full-year 25.3 24.8 15.3 23.1 Q1 Q2 Industry Volume (units billion) 2012 2013 23.5 22.9 13.5 19.1 Q1 Q2 PMI Volume (units billion) 2012 2013

(a) Excluding the Philippines and duty free Note: Historical data adjusted for Jordan acquisition in 2011 Source: PMI Financials and PMI estimates 33.3 34.0 34.3 34.4 32 35 2011 2012 12mm 3mm PMI Market Share Growth Momentum (%) June 2013 21 Top 30 PMI OCI Markets(a)

Source: PMI forecasts and PMI Financials 22 Confident That We Will Deliver Solid Financial Results in 2013 ● Cigarette industry volumes remain the key challenge ● We expect to achieve solid market shares and higher prices ● Our revised reported diluted EPS guidance is $5.43 to $5.53 at prevailing exchange rates. Our guidance continues to represent a growth rate of approximately 10% to 12% excluding currency, compared to our 2012 adjusted diluted EPS of $5.22 ● We anticipate strong free cash flow growth, excluding currency, in 2013 and remain steadfast in our commitment to reward our shareholders: - Dividend yield of 3.8% last Friday - Target dividend payout ratio of 65% - $1.5 billion spent on share repurchases in the quarter - Close to 25% of shares outstanding at the time of the spin have now been repurchased

Questions & Answers 2013 Second-Quarter Results

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) 24 2012 Reported Diluted EPS 5.17$ Adjustments: Asset impairment and exit costs 0.03 Tax item 0.02 Adjust iluted EPS 5.22$

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Adjustments for the Impact of Currency and Acquisitions For the Quarters Ended June 30, ($ in millions) (Unaudited) 25 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 7,245$ 5,039$ 2,206$ (25)$ 2,231$ -$ 2,231$ European Union 7,280$ 4,995$ 2,285$ (3.5)% (2.4)% (2.4)% 5,377 3,196 2,181 (49) 2,230 - 2,230 EEMA 5,062 2,911 2,151 1.4% 3.7% 3.7% 5,381 2,689 2,692 (141) 2,833 - 2,833 Asia 5,317 2,462 2,855 (5.7)% (0.8)% (0.8)% 2,480 1,642 838 (28) 866 - 866 Latin America & Canada 2,378 1,549 829 1.1% 4.5% 4.5% 20,483$ 12,566$ 7,917$ (243)$ 8,160$ -$ 8,160$ PMI Total 20,037$ 11,917$ 8,120$ (2.5)% 0.5% 0.5% Reported Operating Companies I come 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 1,082$ 2$ 1,080$ -$ 1,080$ European Union 1,117$ (3.1)% (3.3)% (3.3)% 945 (28) 973 - 973 EEMA 948 (0.3)% 2.6% 2.6% 1,128 (112) 1,240 - 1,240 Asia 1,364 (17.3)% (9.1)% (9.1)% 255 (8) 263 - 263 Latin America & Canada 249 2.4% 5.6% 5.6% 3,410$ (146)$ 3,556$ -$ 3,556$ PMI Total 3,678$ (7.3)% (3.3)% (3.3)% 2013 2012 % Change in Reported Operating Companies Income 2013 2012 % Change in Reported Net Revenues excluding Excise Taxes

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 June 30, ($ in millions) (Unaudited) 26 (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 1,082$ -$ 1,082$ 2$ 1,080$ -$ 1,080$ European Union 1,117$ -$ 1,117$ (3.1)% (3.3)% (3.3)% 945 - 945 (28) 973 - 973 EEMA 948 - 948 (0.3)% 2.6% 2.6% 1,128 (5) 1,133 (112) 1,245 - 1,245 Asia 1,364 - 1,364 (16.9)% (8.7)% (8.7)% 255 - 255 (8) 263 - 263 Latin America & Canada 249 (8) 257 (0.8)% 2.3% 2.3% 3,410$ (5)$ 3,415$ (146)$ 3,561$ -$ 3,561$ PMI Total 3,678$ (8)$ 3,686$ (7.4)% (3.4)% (3.4)% % 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 1,080$ 2,231$ 48.4% 1,080$ 2,231$ 48.4% European Union 1,117$ 2,285$ 48.9% (0.5) (0.5) 973 2,230 43.6% 973 2,230 43.6% EEMA 948 2,151 44.1% (0.5) (0.5) 1,245 2,833 43.9% 1,245 2,833 43.9% Asia 1,364 2,855 47.8% (3.9) (3.9) 263 866 30.4% 263 866 30.4% Latin America & Canada 257 829 31.0% (0.6) (0.6) 3,561$ 8,160$ 43.6% 3,561$ 8,160$ 43.6% PMI Total 3,686$ 8,120$ 45.4% (1.8) (1.8) 2013 2012 2013 2012 % Change in Adjusted Operating Companies Income

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 June 30, (Unaudited) 27 2013 2012 % Change Reported Diluted EPS 1.30$ 1.36$ (4.4)% Adjustments: Asset impairment and exit costs - - Tax item - - Adjuste iluted EPS 1.30$ 1.36$ (4.4)% Less: Currency impact (0.07) Adjusted Diluted EPS, excluding Currency 1.37$ 1.36$ 0.7%

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Adjustments for the Impact of Currency and Acquisitions For the Six Months Ended June 30, ($ in millions) (Unaudited) 28 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 13,768$ 9,592$ 4,176$ 2$ 4,174$ -$ 4,174$ European Union 13,750$ 9,412$ 4,338$ (3.7)% (3.8)% (3.8)% 9,800 5,576 4,224 (39) 4,263 - 4,263 EEMA 9,131 5,145 3,986 6.0% 6.9% 6.9% 10,632 5,150 5,482 (262) 5,744 - 5,744 Asia 10,494 4,862 5,632 (2.7)% 2.0% 2.0% 4,810 3,191 1,619 (47) 1,666 - 1,666 Latin America & Canada 4,684 3,072 1,612 0.4% 3.3% 3.3% 39,010$ 23,509$ 15,501$ (346)$ 15,847$ -$ 15,847$ PMI Total 38,059$ 22,491$ 15,568$ (0.4)% 1.8% 1.8% Reported Operating Companies I come 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 2,020$ (10)$ 2,030$ -$ 2,030$ European Union 2,147$ (5.9)% (5.4)% (5.4)% 1,880 (31) 1,911 - 1,911 EEMA 1,758 6.9% 8.7% 8.7% 2,470 (215) 2,685 - 2,685 Asia 2,771 (10.9)% (3.1)% (3.1)% 509 (12) 521 - 521 Latin America & Canada 486 4.7% 7.2% 7.2% 6,879$ (268)$ 7,147$ -$ 7,147$ PMI Total 7,162$ (4.0)% (0.2)% (0.2)% 2013 2012 % Change in Reported Operating Companies Income 2013 2012 % Change in Reported Net Revenues excluding Excise Taxes

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 Six Months Ended June 30, ($ in millions) (Unaudited) 29 (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 2,020$ -$ 2,020$ (10)$ 2,030$ -$ 2,030$ European Union 2,147$ -$ 2,147$ (5.9)% (5.4)% (5.4)% 1,880 - 1,880 (31) 1,911 - 1,911 EEMA 1,758 - 1,758 6.9% 8.7% 8.7% 2,470 (8) 2,478 (215) 2,693 - 2,693 Asia 2,771 - 2,771 (10.6)% (2.8)% (2.8)% 509 - 509 (12) 521 - 521 Latin America & Canada 486 (16) 502 1.4% 3.8% 3.8% 6,879$ (8)$ 6,887$ (268)$ 7,155$ -$ 7,155$ PMI Total 7,162$ (16)$ 7,178$ (4.1)% (0.3)% (0.3)% % 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 2,030$ 4,174$ 48.6% 2,030$ 4,174$ 48.6% European Union 2,147$ 4,338$ 49.5% (0.9) (0.9) 1,911 4,263 44.8% 1,911 4,263 44.8% EEMA 1,758 3,986 44.1% 0.7 0.7 2,693 5,744 46.9% 2,693 5,744 46.9% Asia 2,771 5,632 49.2% (2.3) (2.3) 521 1,666 31.3% 521 1,666 31.3% Latin America & Canada 502 1,612 31.1% 0.2 0.2 7,155$ 15,847$ 45.2% 7,155$ 15,847$ 45.2% PMI Total 7,178$ 15,568$ 46.1% (0.9) (0.9) 2013 2012 2013 2012 % Change in Adjusted Operating Companies Income

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 Six Months Ended June 30, (Unaudited) 30 2013 2012 % Change Reported Diluted EPS 2.58$ 2.60$ (0.8)% Adjustments: Asset impairment and exit costs - 0.01 Tax item 0.01 - Adjus e iluted EPS 2.59$ 2.61$ (0.8)% Less: Currency impact (0.14) Adjusted Diluted EPS, excluding Currency 2.73$ 2.61$ 4.6%

July 18, 2013 2013 Second-Quarter Results