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): February 6, 2014

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 February 6, 2014, Philip Morris International Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended December 31, 2013 and the fiscal year ended December 31, 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 February 6, 2014 (furnished pursuant to Item 2.02)

99.2 Conference Call Script dated February 6, 2014 (furnished pursuant to Item 2.02)

99.3 Webcast Slides dated February 6, 2014 (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: February 6, 2014

EXHIBIT INDEX

Exhibit No.Description

99.1 Philip Morris International Inc. Press Release dated February 6, 2014 (furnished pursuant to Item 2.02)

99.2 Conference Call Script dated February 6, 2014 (furnished pursuant to Item 2.02)

99.3 Webcast Slides dated February 6, 2014 (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 RESULTS;

PROVIDES 2014 EARNINGS PER SHARE FORECAST

2013Full-Year

• Reported diluted earnings per share of $5.26, up by $0.09 or 1.7% versus $5.17 in 2012

• Excluding unfavorable currency of $0.34, reported diluted earnings per share up by $0.43 or 8.3% versus $5.17 in 2012 as detailed in the attached Schedule 17

• Adjusted diluted earnings per share of $5.40, up by $0.18 or 3.4% versus $5.22 in 2012

• Excluding unfavorable currency of $0.34, adjusted diluted earnings per share up by $0.52 or 10.0% versus $5.22 in 2012 as detailed in the attached Schedule 16

• Cigarette shipment volume of 880.2 billion units, down by 5.1%

• Cigarette shipment volume down by 2.7%, excluding the Philippines

• Reported net revenues, excluding excise taxes, of $31.2 billion, down by 0.5%

• Excluding unfavorable currency, reported net revenues, excluding excise taxes, up by 1.9%

• Reported operating companies income of $13.8 billion, down by 2.7%

• Excluding unfavorable currency, reported operating companies income up by 1.9%

• Adjusted operating companies income, reflecting the items detailed in the attached Schedule 15, of $14.1 billion, down by 1.1%

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

• Reported operating income of $13.5 billion, down by 2.5%

• Regular quarterly dividend increased by 10.6% to an annualized rate of $3.76 per common share

• Repurchased 67.2 million shares of the company's common stock for $6.0 billion

2013Fourth-Quarter

• Reported diluted earnings per share of $1.24, down by $0.01 or 0.8% versus $1.25 in 2012

• Excluding unfavorable currency of $0.11, reported diluted earnings per share up by $0.10 or 8.0% versus $1.25 in 2012 as detailed in the attached Schedule 13

• Adjusted diluted earnings per share of $1.37, up by $0.13 or 10.5% versus $1.24 in 2012

• Excluding unfavorable currency of $0.11, adjusted diluted earnings per share up by $0.24 or 19.4% versus $1.24 in 2012 as detailed in the attached Schedule 12

• Cigarette shipment volume of 223.2 billion units, down by 4.3%

• Cigarette shipment volume down by 1.9%, excluding the Philippines

• Reported net revenues, excluding excise taxes, of $7.8 billion, down by 1.3%

• Excluding unfavorable currency, reported net revenues, excluding excise taxes, up by 2.5%

• Reported operating companies income of $3.2 billion, down by 1.8%

• Excluding unfavorable currency, reported operating companies income up by 4.7%

• Adjusted operating companies income of $3.5 billion, up by 6.3%

• Excluding unfavorable currency, adjusted operating companies income up by 12.7%

• Reported operating income of $3.2 billion, down by 1.1%

• Repurchased 17.2 million shares of the company's common stock for $1.5 billion

2014

• Forecasts 2014 full-year reported diluted earnings per share to be in a range of $5.02 to $5.12, at prevailing exchange rates, versus $5.26 in 2013. Excluding an unfavorable currency impact, at prevailing exchange rates, of approximately $0.71 for the full-year 2014, the reported diluted earnings per share range represents a projected increase of 6% to 8% versus adjusted diluted earnings per share of $5.40 in 2013 as detailed in the attached Schedule 16

• Forecast includes a one-year gross productivity and cost savings target for 2014 of approximately $300 million

• Forecast includes a share repurchase target for 2014 of $4.0 billion

NEW YORK, February 6, 2014 -- Philip Morris International Inc. (NYSE / Euronext Paris: PM) today announced its 2013full-year and fourth-quarter results.

“We confronted an extremely harsh operating environment in 2013. Within this context, we withstood the pressures well and delivered a solid financial performance," said André Calantzopoulos, Chief Executive Officer.

“As foreseen, our fourth-quarter results were particularly strong, contributing to our full-year adjusted diluted earnings per share growth of 10%, excluding the impact of unfavorable currency. This performance reflects our continued robust pricing and excellent share momentum.”

"The challenges of last year, including significant currency headwinds, are likely to persist into 2014 and are reflected in our full-year forecast for reported diluted EPS, along with significant expenditures behind the development of reduced-risk products.  Our overarching objective remains our steadfast commitment to generously reward our long-term shareholders."

Conference Call

A conference call, hosted by André Calantzopoulos, Chief Executive Officer, and Jacek Olczak, Chief Financial Officer, with members of the investor community and news media, will be webcast at 1:00 p.m., Eastern Time, on February 6, 2014. Access is available at www.pmi.com/webcasts.

Dividends and Share Repurchase Program

PMI increased its regular quarterly dividend during 2013 to $0.94, up by 10.6% from $0.85, which represents an annualized rate of $3.76 per common share. Since its spin-off in March 2008, PMI has increased its regular quarterly dividend every year, or by 104.3% from the initial annualized rate of $1.84 per common share.

During the fourth quarter, PMI spent $1.5 billion to repurchase 17.2 million shares. For the full-year2013, PMI spent $6.0 billion to repurchase 67.2 million shares. Under the current $18 billion share repurchase program, PMI spent $8.9 billion to repurchase 99.4 million shares, as shown in the table below.

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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
July - September 2013	1,455		16,717
October - December 2013	1,500		17,164
Total Under Program	$	8,853	99,437

Since May 2008, when PMI began its first share repurchase program, the company has spent an aggregate of $33.9 billion to repurchase 556.2 million shares at an average price of $60.86 per share, or 26.4% of the shares outstanding at the time of the spin-off in March 2008.

Business Development

The previously announced sale by Grupo Carso, S.A.B. de C. V. to PMI of its 20% interest in PMI's Mexican tobacco business was completed on September 30, 2013, for $703 million.  The transaction, which resulted in PMI owning 100% of its Mexican business, was marginally accretive to PMI's earnings per share as of the fourth quarter of 2013.

On September 30, 2013, PMI announced its entry into a definitive agreement to acquire 49% of the shares of United Arab Emirates-based Arab Investors-TA (FZC) (“AITA”) for $625 million. Through its acquisition of 49% of the shares of AITA, PMI secured an almost 25% economic interest in the Société des Tabacs Algéro-Emiratie, a joint venture which is 51% owned by AITA and 49% by the Algerian state-owned Société Nationale des Tabacs et Allumettes SpA. This equity investment in AITA will provide PMI with enhanced earnings from Algeria and is projected to be accretive to PMI’s earnings per share as of the first quarter of 2014.

On December 4, 2013, PMI announced its agreement to acquire a 20% equity interest in Megapolis Distribution BV, the holding company of CJSC TK Megapolis, PMI's distributor in Russia, for $750 million. In addition to enhanced earnings and cash flow for PMI, this investment paves the way for infrastructure expansion and improved operating efficiencies in the distribution of PMI's products in Russia. The transaction was completed on December 12, 2013, and is projected to be accretive to PMI’s earnings per share as of the first quarter of 2014.

On December 20, 2013, PMI announced the establishment of a strategic framework with Altria Group, Inc. ("Altria") to commercialize reduced-risk products and e-cigarettes. Under the terms of a set of licensing, supply and cooperation agreements, Altria will make available its e-cigarette products exclusively to PMI for commercialization outside the United States and PMI will make available two of its candidate reduced-risk tobacco products exclusively to Altria for commercialization in the United States.

On January 29, 2014, PMI announced that, as part of its initiative to enhance profitability and growth in North African and Middle Eastern markets, it had decided to restructure its business in Egypt. The new business model entails a new contract manufacturing agreement with its long-standing, strategic business partner, Eastern Company S.A.E., the creation of a new PMI affiliate in Egypt and a new distribution agreement with Trans Business for Trading and Distribution LLC. To accomplish this restructuring and to ensure a smooth transition to the new model, PMI recorded, in the fourth quarter of 2013, a charge to its 2013 full-year reported diluted earnings per share of approximately $0.10 to reflect the discontinuation of existing contractual arrangements.

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Productivity and Cost Savings Program

In 2013, PMI exceeded its one-year gross productivity and cost savings target of $300 million, primarily through the rationalization of tobacco blends and product specifications and other manufacturing and procurement initiatives.

PMI announces a one-year gross productivity and cost savings target for 2014 of approximately $300 million.

2014Full-Year Forecast

PMI forecasts 2014 full-year reported diluted earnings per share to be in a range of $5.02 to $5.12, at prevailing exchange rates, versus $5.26 in 2013. Excluding an unfavorable currency impact, at prevailing exchange rates, of approximately $0.71 for the full-year 2014, the reported diluted earnings per share range represents a projected increase of 6% to 8% versus adjusted diluted earnings per share of $5.40 in 2013 as detailed in the attached Schedule 16.

This forecast includes the aforementioned productivity and cost savings target of $300 million and a share repurchase target of $4.0 billion.

This forecast excludes the impact of any 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.

2013FULL-YEAR AND FOURTH-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, excluding general corporate expenses and the amortization of intangibles, plus equity (income)/loss in unconsolidated subsidiaries, net. PMI's management evaluates business segment performance and allocates resources based on OCI. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Management also reviews OCI, OCI margins and earnings per share, or “EPS,” and EBITDA 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), as well asfree 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 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. In 2013, PMI concluded a number of business development initiatives and agreements that were not accounted for as acquisitions; thus, non-GAAP financial measures for 2013 that exclude acquisitions do not exclude the impact of said initiatives and agreements.

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NET REVENUES

PMI Net Revenues ($ Millions)
	Fourth-Quarter								Full-Year
							Excl.								Excl.
	2013		2012		Change		Curr.		2013		2012		Change		Curr.
European Union	$	2,139	$	2,063	3.7	%	(0.4	)%	$	8,596	$	8,526	0.8	%	(1.6	)%
Eastern Europe, Middle East & Africa	2,257		2,139		5.5	%	7.9	%	8,766		8,332		5.2	%	6.4	%
Asia	2,476		2,805		(11.7	)%	(2.2	)%	10,501		11,198		(6.2	)%	0.3	%
Latin America & Canada	917		882		4.0	%	11.5	%	3,354		3,321		1.0	%	5.4	%
Total PMI	$	7,789	$	7,889	(1.3	)%	2.5	%	$	31,217	$	31,377	(0.5	)%	1.9	%

2013Full-Year

Net revenues of $31.2 billion were down by 0.5%, including unfavorable currency of $765 million. Excluding currency, net revenues increased by 1.9%, driven by favorable pricing of $2.1 billion across all Regions, partially offset by unfavorable volume/mix of $1.5 billion, predominantly due to a lower total market and mix in all Regions and a market share decline in Asia.

2013Fourth-Quarter

Net revenues of $7.8 billion were down by 1.3%, including unfavorable currency of $299 million. Excluding currency, net revenues increased by 2.5%, driven by favorable pricing of $548 million across all Regions, partially offset by unfavorable volume/mix of $349 million predominantly due to Asia.

OPERATING COMPANIES INCOME

PMI Operating Companies Income ($ Millions)
	Fourth-Quarter								Full-Year
							Excl.								Excl.
	2013		2012		Change		Curr.		2013		2012		Change		Curr.
European Union	$	1,011	$	955	5.9	%	1.8	%	$	4,238	$	4,187	1.2	%	(1.0	)%
Eastern Europe, Middle East & Africa	811		921		(11.9	)%	(5.5	)%	3,779		3,726		1.4	%	4.7	%
Asia	1,055		1,129		(6.6	)%	7.2	%	4,622		5,197		(11.1	)%	(0.5	)%
Latin America & Canada	358		290		23.4	%	36.9	%	1,134		1,043		8.7	%	14.9	%
Total PMI	$	3,235	$	3,295	(1.8	)%	4.7	%	$	13,773	$	14,153	(2.7	)%	1.9	%

2013Full-Year

Reported operating companies income of $13.8 billion was down by 2.7%, including unfavorable currency of $642 million. Excluding currency, operating companies income increased by 1.9%, reflecting favorable pricing, partly offset by unfavorable volume/mix of $1.2 billion, predominantly due to a lower total market and mix in all Regions, higher manufacturing costs and higher asset impairment and exit costs.

Adjusted operating companies income decreased by 1.1% as shown in the table below and detailed in Schedule 15. Adjusted operating companies income, excluding unfavorable currency, increased by 3.4%. Adjusted operating companies income margin, excluding unfavorable currency, increased by 0.6 points to 46.0%, as detailed in Schedule 15.

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2013Fourth-Quarter

Reported operating companies income of $3.2 billion was down by 1.8%, including unfavorable currency of $214 million. Excluding currency, operating companies income increased by 4.7%, reflecting favorable pricing and lower costs, partly offset by unfavorable volume/mix of $289 million predominantly due to Asia, and the previously disclosed asset impairment and exit charge of approximately $0.10 per share associated with the discontinuation of PMI's existing contractual arrangements in Egypt.

Adjusted operating companies income increased by 6.3% as shown in the table below and detailed in Schedule 11. Adjusted operating companies income, excluding unfavorable currency, increased by 12.7% representing the best quarterly performance of the year. Adjusted operating companies income margin, excluding unfavorable currency, increased by 4.2 points to 46.4%, as detailed in Schedule 11.

PMI Operating Companies Income ($ Millions)
	Fourth-Quarter										Full-Year
									Excl.										Excl.
	2013			2012			Change		Curr.		2013			2012			Change		Curr.
Reported OCI	$	3,235		$	3,295		(1.8	)%	4.7	%	$	13,773		$	14,153		(2.7	)%	1.9	%
Asset impairment & exit costs	(301		)	(33		)					(309		)	(83		)
Adjusted OCI	$	3,536		$	3,328		6.3	%	12.7	%	$	14,082		$	14,236		(1.1	)%	3.4	%
Adjusted OCI Margin*	45.4		%	42.2		%	3.2		4.2		45.1		%	45.4		%	(0.3	)	0.6
*Margins are calculated as adjusted OCI, divided by net revenues, excluding excise taxes.

SHIPMENT VOLUME & MARKET SHARE

PMI Cigarette Shipment Volume (Million Units)
	Fourth-Quarter				Full-Year
	2013	2012	Change		2013	2012	Change
European Union	44,437	46,744	(4.9	)%	185,096	197,966	(6.5	)%
Eastern Europe, Middle East & Africa	76,428	77,356	(1.2	)%	296,462	303,828	(2.4	)%
Asia	74,821	82,573	(9.4	)%	301,324	326,582	(7.7	)%
Latin America & Canada	27,513	26,446	4.0	%	97,287	98,660	(1.4	)%
Total PMI	223,199	233,119	(4.3	)%	880,169	927,036	(5.1	)%

2013Full-Year

PMI's cigarette shipment volume of 880.2 billion units decreased by 5.1%, or 46.9 billion units, due principally to a significant erosion in total industry tax-paid volume. 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 prevalence of non-duty paid products; in EEMA, the impact of price increases in Russia and Ukraine, an increase in illicit trade in Russia, Turkey and Ukraine, and a weak economy in Russia; and, in Asia, the unfavorable impact of the disruptive January 2013 excise tax increase and a surge in the prevalence of domestic non-duty paid products in the Philippines, and lower share in Japan and Pakistan, partly offset by Indonesia. Excluding the Philippines, PMI's cigarette shipment volume decreased by 2.7%.

Total cigarette shipments of Marlboro of 291.1 billion units decreased by 3.5%, due primarily to declines in: the EU, notably France, Poland and Spain, partly offset by Italy; EEMA, primarily Romania, Russia, Turkey and

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Ukraine, largely offset by North Africa; Asia, predominantly Japan and the Philippines, partly offset by Indonesia; and Latin America & Canada, mainly Argentina and Brazil, partly offset by Colombia and Mexico. Excluding the Philippines, total cigarette shipments of Marlboro decreased by 1.3%.

Total cigarette shipments of L&M of 95.0 billion units increased by 1.4%, driven notably by Egypt, Russia and Saudi Arabia, partly offset by Turkey. Total cigarette shipments of Bond Street of 44.9 billion units decreased by 4.2%, due predominantly to Russia and Ukraine. Total cigarette shipments of Philip Morris of 35.0 billion units decreased by 7.9%, due primarily to Italy and the Philippines, partly offset by Argentina. Total cigarette shipments of Parliament of 44.7 billion units increased by 2.9%, driven mainly by Turkey, partly offset by Japan. Total cigarette shipments of Chesterfield of 34.4 billion units decreased by 3.2%, due primarily to Russia and Ukraine, partly offset by Germany and Turkey. Total cigarette shipments of Lark of 28.8 billion units decreased by 10.2%, due predominantly to Japan and Turkey.

Total shipment volume of OTP, in cigarette equivalent units, increased by 4.9%, primarily reflecting growth in the EU, notably in Belgium, France, Hungary and Italy. Total shipment volume for cigarettes and OTP, in cigarette equivalent units, decreased by 4.7%.

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

2013Fourth-Quarter

PMI's cigarette shipment volume of 223.2 billion units decreased by 4.3%, or 9.9 billion units, due principally to a total industry volume decline and lower market share. The decrease in PMI's cigarette shipment volume in the EU, EEMA and Asia Regions was due primarily to the same factors that impacted the full year. PMI's cigarette shipment volume increased in Latin America & Canada, driven principally by Argentina and Mexico. Excluding the Philippines, PMI's cigarette shipment volume decreased by 1.9%.

Total cigarette shipments of Marlboro of 74.8 billion units decreased by 0.9%, due primarily to declines in: the EU, notably Germany and Poland, partly offset by Austria and Italy; and Asia, notably Japan and, predominantly, the Philippines, partly offset by Indonesia. Cigarette shipments of Marlboro increased in: EEMA, reflecting growth primarily in the Middle East and North Africa, partly offset by Russia and Ukraine; and Latin America & Canada, driven largely by Mexico. Excluding the Philippines, total cigarette shipments of Marlboro increased by 1.2%.

Total cigarette shipments of L&M of 23.6 billion units decreased by 2.2%, due to declines primarily in Egypt and Turkey, partly offset by growth in, notably, Germany, Russia and Saudi Arabia. Total cigarette shipments of Bond Street of 11.5 billion units increased by 1.6%, due predominantly to growth in EEMA and Asia, partly offset by a decline in the EU. Total cigarette shipments of Philip Morris of 9.0 billion units decreased by 5.2%, due primarily to Italy, Japan and the Philippines, partly offset by Argentina. Total cigarette shipments of Parliament of 11.6 billion units increased by 2.5%, driven mainly by Turkey, partly offset by Japan. Total cigarette shipments of Chesterfield of 8.6 billion units increased by 3.4%, driven mainly by Austria, Germany, Poland, Portugal and Turkey, partly offset by Russia, Spain, and Ukraine. Total cigarette shipments of Lark of 6.9 billion units decreased by 12.7%, due predominantly to Japan and Turkey.

Total shipment volume of OTP, in cigarette equivalent units, increased by 9.4%, primarily reflecting growth in the EU, notably in France, Hungary and Italy. Total shipment volume for cigarettes and OTP, in cigarette equivalent units, decreased by 3.8%.

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PMI's market share increased in a number of key markets, including Algeria, Argentina, Australia, Belgium, Brazil, France, Germany, Greece, Kazakhstan, Korea, Mexico, the Netherlands, Poland, Portugal, Saudi Arabia, Spain, Thailand, Ukraine and the United Kingdom.

EUROPEAN UNION REGION (EU)

2013Full-Year

Net revenues of $8.6 billionincreased by 0.8%.  Excluding favorable currency of $205 million, net revenues decreased by 1.6%, due to unfavorable volume/mix of $483 million, predominantly resulting from a lower total market, notably in Germany, Italy and Spain, partly offset by favorable pricing of $348 million, notably in France, Germany and Spain.

Operating companies income of $4.2 billionincreased by 1.2%, including favorable currency of $92 million. Excluding currency, operating companies income decreased by 1.0%, mainly due to unfavorable volume/mix of $403 million, predominantly resulting from a lower total market, notably in Germany, Italy and Spain, partly offset by favorable pricing.

Adjusted operating companies income increased by 1.4%, as shown in the table below and detailed on Schedule 15.  Adjusted operating companies income, excluding favorable currency, decreased by 0.8%.

EU Operating Companies Income ($ Millions)
	Fourth-Quarter										Full-Year
									Excl.										Excl.
	2013			2012			Change		Curr.		2013			2012			Change		Curr.
Reported OCI	$	1,011		$	955		5.9	%	1.8	%	$	4,238		$	4,187		1.2	%	(1.0	)%
Asset impairment & exit costs	(13		)	(5		)					(13		)	(5		)
Adjusted OCI	$	1,024		$	960		6.7	%	2.6	%	$	4,251		$	4,192		1.4	%	(0.8	)%
Adjusted OCI Margin*	47.9		%	46.5		%	1.4		1.5		49.5		%	49.2		%	0.3		0.4
*Margins are calculated as adjusted OCI, divided by net revenues, excluding excise taxes.

Adjusted operating companies income margin, excluding favorable currency, increased by 0.4 points to 49.6%, as detailed in Schedule 15.

The total cigarette market in the EU of 482.4 billion units decreased by 7.5%, due primarily to the impact of tax-driven price increases, the unfavorable economic and employment environment and the prevalence of non-duty paid products. The total OTP market in the EU of 162.7 billion cigarette equivalent units increased by 0.3%, reflecting a larger total fine cut market, up by 0.2% to 141.6 billion cigarette equivalent units.

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EU Region & Key Market Shares
	Fourth-Quarter						Full-Year
	2013		2012		Change		2013		2012		Change
					p.p.						p.p.
Total EU	38.6	%	38.3	%	0.3		38.5	%	38.0	%	0.5
France	40.4	%	40.1	%	0.3		40.2	%	39.6	%	0.6
Germany	36.9	%	35.6	%	1.3		36.2	%	35.8	%	0.4
Italy	52.4	%	53.2	%	(0.8	)	53.1	%	53.0	%	0.1
Poland	39.3	%	39.2	%	0.1		36.6	%	36.4	%	0.2
Spain	31.5	%	31.1	%	0.4		31.2	%	30.5	%	0.7

Although PMI's cigarette shipment volume of 185.1 billion units decreased by 6.5%, predominantly reflecting a lower total market across the Region, PMI's market share increased by 0.5 points to 38.5% as shown in the table above. While shipment volume of Marlboro of 91.3 billion units decreased by 3.7%, mainly due to a lower total market, market share increased by 0.4 points to 19.0%, driven notably by Germany, Greece, the Netherlands, Italy and Spain. While shipment volume of L&Mdecreased by 4.0% to 32.9 billion units, market share increased by 0.2 points to 6.8%, driven notably by the Czech Republic, Germany and Poland. Shipment volume of Chesterfield of 19.0 billion units increased by 5.1%, and market share increased by 0.2 points to 4.0%, driven notably by the Czech Republic, Poland, Portugal and the United Kingdom. Although shipment volume of Philip Morris of 9.6 billion units decreased by 10.4%, due predominantly to Italy reflecting the morphing of certain brand variants into Marlboro, market share increased by 0.3 points to 2.0%. 

PMI's shipments of OTP of 21.5 billion cigarette equivalent units increased by 6.7%, driven principally by higher share. PMI's OTP total market share was 13.1%, up by 0.9 points, reflecting gains in the fine cut category, notably in France, up by 1.8 points to 27.0%, Italy, up by 9.8 points to 37.7%, Poland, up by 3.2 points to 21.0%, Portugal, up by 11.5 points to 31.9%, and Spain, up by 2.0 points to 13.8%.

2013Fourth-Quarter

Net revenues of $2.1 billionincreased by 3.7%.  Excluding favorable currency of $85 million, net revenues decreased by 0.4%, due to unfavorable volume/mix of $87 million, predominantly reflecting a lower total market, notably in Germany, Italy and Spain, partly offset by favorable pricing of $78 million, notably in Germany, Portugal and Spain.

Operating companies income of $1.0 billionincreased by 5.9%, including favorable currency of $39 million. Excluding currency, operating companies income increased by 1.8%, mainly driven by favorable pricing and lower costs, partly offset by unfavorable volume/mix of $81 million.

Adjusted operating companies income increased by 6.7%, as shown in the table above and detailed on Schedule 11.  Adjusted operating companies income, excluding favorable currency, increased by 2.6%.

Adjusted operating companies income margin, excluding favorable currency, increased by 1.5 points to 48.0%, as detailed in Schedule 11.

The total cigarette market in the EU of 117.3 billion units decreased by 5.8%, representing a more modest rate of decline compared to the 10.6% and 8.0% decrease in the first and second quarters of 2013, respectively, and comparable to the decline of 5.5% in the third quarter. The decrease in the fourth quarter was due primarily to the same factors that impacted the total cigarette market for the full year. The total OTP market in the EU of 40.5

- -9 -

billion cigarette equivalent units increased by 0.2%, reflecting a continued excise-tax driven narrowing of the price gap with cigarettes, notably in Italy and Spain.

Although PMI's cigarette shipment volume of 44.4 billion units decreased by 4.9%, predominantly reflecting a lower total market across the Region, PMI's market share increased by 0.3 points to 38.6% as shown in the table above. While shipment volume of Marlboro of 22.1 billion units decreased by 2.7%, mainly due to a lower total market, market share increased by 0.3 points to 19.1%, driven notably by Belgium, Germany, Greece, Italy, the Netherlands and Spain. While shipment volume of L&Mdecreased by 3.1% to 8.1 billion units, market share increased by 0.3 points to 7.0%. Shipment volume of Chesterfield of 4.7 billion units increased by 10.4%, and market share increased by 0.3 points to 4.2%, driven notably by Poland, Portugal and the United Kingdom. Although shipment volume of Philip Morris of 2.3 billion units decreased by 4.7%, market share increased by 0.2 points to 2.0% with gains notably in France and Italy. 

PMI's shipments of OTP of 5.4 billion cigarette equivalent units increased by 11.2%, driven principally by higher share. PMI's OTP total market share was 13.4%, up by 1.1 points, reflecting gains in the fine cut category, notably in France, up by 1.7 points to 27.8%, Hungary, up by 8.3 points to 13.2%, Italy, up by 13.5 points to 41.3%, Poland, up by 12.7 points to 28.2%, Portugal, up by 12.4 points to 35.0%, and Spain, up by 2.1 points to 15.3%.

EU Key Market Commentaries

In France, the total cigarette market of 47.5 billion units decreased by 7.6% in 2013, mainly reflecting the unfavorable impact of price increases in the fourth quarter of 2012 and July 2013, an increase in the prevalence of non-duty paid products, growth of the fine cut category, and a weak economy. PMI's shipments of 19.1 billion units decreased by 5.3%, including a favorable trade inventory comparison driven by the timing of shipments in the second half of 2012 in anticipation of price increases in the fourth quarter of 2012. PMI's market share increased by 0.6 points to 40.2%, 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 share of Marlboro and L&M decreased by 0.1 point and 0.2 points to 24.7% and2.5%, respectively. The total industry fine cut category of 13.9 billion cigarette equivalent units increased by 3.6% in 2013. PMI's market share of the category increased by 1.8 points to 27.0%. In the fourth quarter of 2013, the total cigarette market of 11.5 billion units decreased by 1.1%, mainly due to the same factors that impacted the total cigarette market for the full year. PMI's shipments of 4.4 billion units increased by 0.7% and market share increased by 0.3 points to 40.4%, driven by Philip Morris, up by 0.6 points to 9.3%, partly offset by Chesterfield and L&M, down by 0.2 points each to 3.4% and 2.5%, respectively. Market share of Marlboro was up by 0.1 point to 24.7%. In the fourth quarter of 2013, the total industry fine cut category of 3.4 billion cigarette equivalent units increased by 4.5%. PMI's market share of the category increased by 1.7 points to 27.8%.

In Germany, the total cigarette market of 79.6 billion units decreased by 4.6% in 2013, mainly reflecting the impact of price increases in the second quarter of 2013. While PMI's shipments of 28.8 billion units decreased by 3.4%, market share increased by 0.4 points to 36.2%, driven by Marlboro and L&M, up by 0.7 and 0.4 points to 22.0% and 10.9%, respectively, partly offset by Chesterfield, down by 0.6 points to 1.7%. The total industry fine cut category of 41.6 billion cigarette equivalent units increased by 0.7% in 2013. PMI's market share of the category decreased by 0.5 points to 14.2%. In the fourth quarter of 2013, the total cigarette market of 19.3 billion units decreased by 5.7%, including an unfavorable comparison with the fourth quarter of 2012 which benefited from higher trade loading at year end. While PMI's shipments of 7.1 billion units decreased by 2.1% in the fourth quarter of 2013, market share increased by 1.3 points to 36.9%, driven by Marlboro and L&M, up by 0.4 and 1.4 points to 22.0% and 11.6%, respectively, partly offset by Chesterfield, down by 0.5 points to 1.7%. In the fourth quarter of

- -10 -

2013, the total industry fine cut category of 10.4 billion cigarette equivalent units increased by 2.2%. PMI's market share of the category decreased by 1.4 points to 13.2%.

In Italy, the total cigarette market of 74.0 billion units decreased by 6.0% in 2013, reflecting an unfavorable economic and employment environment and the prevalence of illicit trade and substitute products.  PMI's shipments of 38.9 billion units decreased by 7.0%, including an unfavorable comparison with 2012 which benefited from trade inventory movements ahead of the morphing of certain variants of Philip Morris into Marlboro as of the first quarter of 2013. PMI's market share increased by 0.1 point to 53.1% in 2013, driven by Marlboro, up by 0.5 points to 25.9%, and Philip Morris, up by 1.1 points to 2.4%, partially offset by Chesterfield, down by 0.1 point to 3.5%, and Diana in the low-price segment, down by 1.1 points to 11.3%, the latter impacted by the growth of the super-low price segment and the availability of non-duty paid products. The total industry fine cut category of 6.0 billion cigarette equivalent units decreased by 3.6%, reflecting the 2012 excise tax-driven reduction of the price gap differential with cigarettes. PMI's market share of the category increased by 9.8 points to 37.7%. In the fourth quarter of 2013, the total cigarette market of 18.3 billion units decreased by 3.4%, mainly due to the same factors that impacted the total cigarette market for the full year. PMI's shipments of 9.2 billion units decreased by 5.8%, including the aforementioned unfavorable comparison related to trade inventory movements. PMI's market share decreased by 0.8 points to 52.4% in the fourth quarter of 2013, with Marlboro, up by 0.2 points to 25.9%, and Philip Morris, up by 1.0 point to 2.6%, offset by Chesterfield, down by 0.1 point to 3.4%, and Diana, down by 1.4 points to 10.7%. In the fourth quarter of 2013, the total industry fine cut category of 1.5 billion cigarette equivalent units increased by 2.2%. PMI's market share of the category increased by 13.5 points to 41.3%.

In Poland, the total cigarette market of 46.6 billion units decreased by 10.6% in 2013, mainly reflecting the unfavorable impact of price increases in the first quarter of 2013 and the availability of non-duty paid OTP products. Although PMI's shipments of 17.1 billion units decreased by 10.1%, PMI's market share increased by 0.2 points to 36.6%, driven by Marlboro, up by 0.2 points to 11.5% and by L&M and Chesterfield, up by 1.2 and 0.6 points to 17.8% and 2.4%, respectively. While the total industry fine cut category of 3.3 billion cigarette equivalent units decreased by 11.2%, reflecting the prevalence of non-duty paid OTP products, PMI's market share of the category increased by 3.2 points to 21.0%. In the fourth quarter of 2013, the total cigarette market of 10.3 billion units decreased by 10.1%, mainly due to unfavorable impact of price increases and the availability of non-duty paid OTP products. Although PMI's shipments of 4.1 billion units decreased by 9.9%, PMI's market share increased by 0.1 point to 39.3%, driven by L&M and Chesterfield, up by 0.6 and 2.2 points to 19.4% and 3.9%, respectively, partly offset by Marlboro, down by 0.7 points to 12.3%. In the fourth quarter of 2013, the total industry fine cut category of 616.0 million cigarette equivalent units decreased by 8.4%. PMI's market share of the category increased by 12.7 points to 28.2%.

In Spain, the total cigarette market of 47.7 billion units decreased by 11.1% in 2013, mainly due to the impact of price increases in the first and third quarters of 2013, the unfavorable economic and employment environment and the growth of the fine cut category. PMI's shipments of 14.6 billion units decreased by 11.5%, including an unfavorable comparison with 2012 which benefited from trade inventory movements in the fourth quarter ahead of price increases in January 2013. PMI's market share increased by 0.7 points to 31.2%, driven by higher share of Marlboro, up by 0.5 points to 14.8%. Market share of Chesterfield was up by 0.3 points to 9.3%, share of L&M was flat at 6.3% and share of Philip Morris was down by 0.1 point to 0.6%. The total industry fine cut category of 10.8 billion cigarette equivalent units increased by 6.9%, partly reflecting switching from pipe tobacco as a result of an excise tax increase on the category in 2012. PMI's market share of the fine cut category increased by 2.0 points to 13.8% in 2013. In the fourth quarter of 2013, the total cigarette market of 11.1 billion units decreased by 8.9%, mainly due to the same factors that impacted the total cigarette market for the full year. Although PMI's

- -11 -

shipments of 3.4 billion units decreased by 11.6%, including the aforementioned unfavorable comparison related to trade inventory movements, PMI's market share increased by 0.4 points to 31.5%, driven by higher share of Marlboro, up by 0.6 points to 15.1%. Market share of Chesterfield was up by 0.1 point to 9.5%, and share of Philip Morris and L&M was down by 0.1 point and 0.2 points to 0.5% and 6.3%, respectively. In the fourth quarter of 2013, the total industry fine cut category of 2.4 billion cigarette equivalent units decreased by 14.0%. PMI's market share of the category increased by 2.1 points to 15.3%.

EASTERN EUROPE, MIDDLE EAST & AFRICA REGION (EEMA)

2013Full-Year

Net revenues of $8.8 billionincreased by 5.2%. Excluding unfavorable currency of $98 million, net revenues increased by 6.4%, driven by favorable pricing of $767 million, principally in Russia, Turkey and Ukraine, partly offset by unfavorable volume/mix of $235 million, mainly due to lower volume in Russia.

Operating companies income of $3.8 billionincreased by 1.4%. Excluding unfavorable currency of $122 million, operating companies income increased by 4.7%, due primarily to higher pricing, partly offset by unfavorable volume/mix of $168 million and higher costs, notably related to the annualization of marketing and business infrastructure investments in Russia and the previously disclosed fourth-quarter asset impairment and exit charge of approximately $0.10 per share associated with the conclusion of PMI's relationship with its business partner in Egypt.

Adjusted operating companies income increased by 8.4%, as shown in the table below and detailed on Schedule 15. Adjusted operating companies income, excluding unfavorable currency, increased by 11.6%.

EEMA Operating Companies Income ($ Millions)
	Fourth-Quarter										Full-Year
									Excl.										Excl.
	2013			2012			Change		Curr.		2013			2012			Change		Curr.
Reported OCI	$	811		$	921		(11.9	)%	(5.5	)%	$	3,779		$	3,726		1.4	%	4.7	%
Asset impairment & exit costs	(264		)	(5		)					(264		)	(5		)
Adjusted OCI	$	1,075		$	926		16.1	%	22.5	%	$	4,043		$	3,731		8.4	%	11.6	%
Adjusted OCI Margin*	47.6		%	43.3		%	4.3		5.9		46.1		%	44.8		%	1.3		2.2
*Margins are calculated as adjusted OCI, divided by net revenues, excluding excise taxes.

Adjusted operating companies income margin, excluding unfavorable currency, increased by 2.2 points to 47.0%, as detailed on Schedule 15.

PMI's cigarette shipment volume of 296.5 billion units decreased by 2.4%, mainly due to Russia, Serbia and Turkey, partly offset by the Middle East and North Africa.

PMI's cigarette shipment volume of premium brands increased by 0.3%, driven by Parliament, up by 5.0% to 33.0 billion units, partly offset by Marlboro, down by 0.9% to 85.8 billion units.

2013Fourth-Quarter

Net revenues of $2.3 billionincreased by 5.5%. Excluding unfavorable currency of $50 million, net revenues increased by 7.9%, driven by favorable pricing of $196 million, principally in Russia and Ukraine, partly offset by unfavorable volume/mix of $28 million, mainly due to lower volume in Russia.

- -12 -

Operating companies income of $811 milliondecreased by 11.9%. Excluding unfavorable currency of $59 million, operating companies income decreased by 5.5%, due primarily to the aforementioned asset impairment and exit charge of approximately $0.10 per share, partly offset by higher pricing.

Adjusted operating companies income increased by 16.1%, as shown in the table above and detailed on Schedule 11. Adjusted operating companies income, excluding unfavorable currency, increased by 22.5%.

Adjusted operating companies income margin, excluding unfavorable currency, increased by 5.9 points to 49.2%, as detailed on Schedule 11, primarily reflecting favorable pricing.

PMI's cigarette shipment volume of 76.4 billion units decreased by 1.2%, mainly due to Russia, Turkey and Ukraine, partly offset by Algeria and the Middle East.

PMI's cigarette shipment volume of premium brands increased by 3.3%, due principally to Marlboro, up by 3.7% to 22.9 billion units, and Parliament, up by 4.4% to 8.8 billion units.

EEMA Key Market Commentaries

In North Africa, defined as Algeria, Egypt, Libya, Morocco and Tunisia, the total cigarette market increased by 0.7% to an estimated 138.7 billion units in 2013, driven notably by Algeria and Egypt, partially offset by Morocco and Tunisia.  PMI’s shipment volume of 36.8 billion units increased by 17.0%, principally reflecting a higher total market and share.  PMI’s market share increased by 3.9 points to 26.5%, driven by gains in all five markets, notably Algeria, up by 0.8 points to 41.1%, and Egypt, up by 4.7 points to 22.9%.  Share of Marlboro and L&M in North Africa increased by 2.1 and 1.5 points to 15.3% and 9.1%, respectively.

In Russia, the total cigarette market declined by 7.6% to an estimated 342.0 billion units in 2013, mainly due to the unfavorable impact of tax-driven price increases, illicit trade and a weak economy. PMI's shipment volume of 88.0 billion units decreased by 6.7%. Shipment volume of PMI's premium portfolio decreased by 6.0%, mainly due to Marlboro, down by 20.4%, partially offset by Parliament, up by 1.0%. In the mid-price segment, shipment volume decreased by 9.5%, mainly due to Chesterfield, down by 17.5%. In the low-price segment, shipment volume decreased by 5.7%, mainly due to Bond Street, Optima and Apollo Soyuz, down by 4.1%, 12.7% and18.0%, respectively. While PMI's market share of 26.1% in 2013, as measured by Nielsen, was down by 0.3 points, it was essentially stable compared to the first three quarters of 2013. Market share of Parliament increased by 0.2 points to 3.4%, L&M increased by 0.2 points to 2.8%, Marlboro decreased by 0.2 points to 1.7%, Chesterfield decreased by 0.4 points to 3.0% and Bond Street was flat at 6.5%. In the fourth quarter of 2013, PMI's shipment volume of 21.6 billion units decreased by 5.2%, mainly due to the aforementioned factors. PMI's market share of 26.3%, as measured by Nielsen, was down by 0.2 points.

In Turkey, the total cigarette market declined by 7.6% to an estimated 91.7 billion units in 2013, primarily reflecting the renewed growth of illicit trade and an unfavorable comparison with trade inventory movements in 2012. Excluding the impact of these inventory movements, the total cigarette market was estimated to have declined by 3.5% in 2013. PMI's shipment volume of 45.2 billion units decreased by 7.1%. PMI's market share, as measured by Nielsen, decreased by 0.2 points to 45.5% in 2013, mainly due to Marlboro, down by 0.3 points to 8.9%, and low-price L&M, down by 1.1 points to 7.3%, partly offset by premium Parliament andmid-price Muratti,up by 1.0 point and 0.3 points to 10.0% and 6.9%, respectively. In the fourth quarter of 2013, PMI's shipment volume of 12.8 billion units decreased by 3.5% and market share, as measured by Nielsen, decreased by 0.5 points to 46.0%.

In Ukraine, the total cigarette market declined by 9.9% to an estimated 75.1 billion units in 2013, mainly reflecting the impact of price increases in 2013 and an increase in illicit trade. Although PMI's 2013 shipment volume

- -13 -

of 25.5 billion units decreased by 5.5%, PMI's market share, as measured by Nielsen, increased by 1.0 point to 33.5%, mainly reflecting 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 5.5%. While, in the fourth quarter of 2013, PMI's shipment volume of 6.2 billion units decreased by 7.0%, market share, as measured by Nielsen, increased by 0.7 points to 33.6%.

ASIA REGION

2013Full-Year

Net revenues of $10.5 billiondecreased by 6.2%, including unfavorable currency of $726 million. Excluding currency, net revenues increased by 0.3%, reflecting favorable pricing of $699 million, notably in Indonesia and the Philippines, partly offset by unfavorable volume/mix of $670 million, primarily in Japan and the Philippines.

Operating companies income of $4.6 billiondecreased by 11.1%, including unfavorable currency of $548 million. Excluding currency, operating companies income decreased by 0.5%, due primarily to unfavorable volume/mix of $536 million, higher manufacturing costs, principally in Indonesia driven mainly by higher clove prices, partly offset by favorable pricing.

Adjusted operating companies income decreased by 11.2% as shown in the table below and detailed on Schedule 15. Adjusted operating companies income, excluding unfavorable currency, decreased by 0.7%.

Asia Operating Companies Income ($ Millions)
	Fourth-Quarter										Full-Year
									Excl.										Excl.
	2013			2012			Change		Curr.		2013			2012			Change		Curr.
Reported OCI	$	1,055		$	1,129		(6.6	)%	7.2	%	$	4,622		$	5,197		(11.1	)%	(0.5	)%
Asset impairment & exit costs	(19		)	(15		)					(27		)	(39		)
Adjusted OCI	$	1,074		$	1,144		(6.1	)%	7.4	%	$	4,649		$	5,236		(11.2	)%	(0.7	)%
Adjusted OCI Margin*	43.4		%	40.8		%	2.6		4.0		44.3		%	46.8		%	(2.5	)	(0.5	)
*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 46.3%, as detailed on Schedule 15, primarily reflecting the impact of unfavorable volume/mix, mainly in Japan and the Philippines, and higher costs, partly offset by higher pricing.

PMI's cigarette shipment volume of 301.3 billion units decreased by 7.7%, due primarily to the lower total market and share in the Philippines, and lower share in Japan and Pakistan, partly offset by share growth in Indonesia. Excluding the Philippines, PMI's cigarette shipment volume decreased by 0.4%.

Shipment volume of Marlboro of 75.3 billion units decreased by 7.1%. Excluding the Philippines, shipment volume of Marlboro increased by 2.0%, primarily reflecting market share growth in Indonesia and Vietnam.

2013Fourth-Quarter

Net revenues of $2.5 billiondecreased by 11.7%, including unfavorable currency of $268 million. Excluding currency, net revenues decreased by 2.2%, due to unfavorable volume/mix of $256 million, primarily in Japan and the Philippines, partially offset by favorable pricing of $195 million, notably in Indonesia.

- -14 -

Operating companies income of $1.1 billiondecreased by 6.6%, including unfavorable currency of $155 million. Excluding currency, operating companies income increased by 7.2%, primarily reflecting favorable pricing and lower costs, partly offset by unfavorable volume/mix of $207 million.

Adjusted operating companies income decreased by 6.1% as shown in the table above and detailed on Schedule 11. Adjusted operating companies income, excluding unfavorable currency, increased by 7.4%.

Adjusted operating companies income margin, excluding unfavorable currency, increased by 4.0 points to 44.8%, as detailed on Schedule 11, primarily reflecting favorable pricing and lower costs.

PMI's cigarette shipment volume of 74.8 billion units decreased by 9.4%, due primarily to the lower total market and share in the Philippines, and lower share in Japan and Pakistan. Excluding the Philippines, PMI's cigarette shipment volume decreased by 3.2%.

Shipment volume of Marlboro of 18.6 billion units decreased by 7.0%. Excluding the Philippines, shipment volume of Marlboro increased by 0.8%.

Asia Key Market Commentaries

In Indonesia, the total cigarette market increased by 1.9% to 308.3 billion units in 2013. PMI's shipment volume of 111.3 billion units increased by 3.4%. PMI's market share increased by 0.5 points to 36.1%, driven notably by Sampoerna A in the premium segment, up by 0.6 points to 14.4%, and mid-price U Mild, up by 1.1 points to 4.4%. Market share of the hand-rolled, full-flavor Dji Sam Soe in the premium segment decreased by 1.0 point to 6.8%, mainly due to a retail price change ahead of competition. Marlboro's market share increased by 0.4 points to 5.2% and its share of the “white” cigarettes segment, representing 6.8% of the total cigarette market, increased by 5.7 points to 77.0%. In the fourth quarter of 2013, the total cigarette market of 81.1 billion units increased by 2.4% and PMI's shipment volume of 29.0 billion units increased by 1.1%. PMI's market share decreased by 0.5 points to 35.7%, with Marlboro, up by 0.4 points to 5.1%, Sampoerna A up by 0.7 points to 14.5% and U Mild, up by 1.0 point to 4.8%, offset by Dji Sam Soe, down by 1.4 points to 6.4%, mid-price Sampoerna Hijau, down by 0.7 points to 4.2%, and the discontinued ultra-low price brands Trend and Vegas.

In Japan, the total cigarette market decreased by 2.0% to 192.6 billion units in 2013. PMI's shipment volume of 53.0 billion units decreased by 5.3%, principally due to a lower total market and share. PMI's market share decreased by 1.0 point to 26.7%, reflecting the impact of PMI's principal competitor's brand launches and significant promotional activities in 2013. Share of Marlboro, Lark and Philip Morris decreased by 0.3, 0.4 and 0.2 points to 12.1%, 8.0% and 2.1%, respectively, and share of Virginia S. wasdown by 0.1point to 2.0%. In the fourth quarter of 2013, the total cigarette market decreased by 1.8% to 49.2 billion units. PMI's shipment volume of 10.6 billion units decreased by 16.3%, principally due to inventory adjustments and a lower share, impacted by several competitive new brand launches in the quarter, down by 1.8 points to 25.9% with share of Marlboro, Lark,Philip Morris and Virginia S. down by 0.6, 0.5, 0.1 and 0.3 points to 11.8%, 7.7%, 2.1% and 2.0%, respectively.

In Korea, the total cigarette market decreased by 1.0% to 88.4 billion units in 2013. Although PMI's shipment volume of 17.2 billion units was essentially flat, market share increased by 0.2 points to 19.4%, with share of Parliament up by 0.3 points to 6.9%, partly offset by Marlboro, down by 0.1 point to 7.7%. Share of Virginia S. was flat at 4.1%. In the fourth quarter of 2013, the total cigarette market increased by 2.2% to 22.3 billion units, primarily reflecting a favorable comparison with the fourth quarter of 2012 which was down by 4.6%. PMI's shipment volume of 4.3 billion units increased by 5.2% in the fourth quarter of 2013 and market share increased by 0.5 points to 19.4%, driven by Marlboro and Parliament, up by 0.3 and 0.4 points to 7.7% and 7.0%, respectively, partly offset by Virginia S., down by 0.2 points to 4.0%.

- -15 -

In the Philippines, the total industry cigarette volume decreased by 15.6% to an estimated 86.3 billion units in 2013, primarily reflecting the unfavorable impact of the disruptive excise tax increase in January 2013 and a surge in the prevalence of domestic non-duty paid products. PMI's shipment volume of 68.5 billion units decreased by 26.2%, primarily reflecting the unfavorable impact of the aforementioned tax increase and the under-declaration of tax-paid volume by PMI's main local competitor. PMI's market share decreased by 11.4 points to 79.3%, primarily due to down-trading to competitors' brands. Marlboro's market share decreased by 4.2 points to 16.7%. Share of Fortune decreased by 17.8 points to 31.6%, partly offset by gains from PMI's other local brands. In the fourth quarter of 2013, the total estimated industry cigarette volume of 25.0 billion units decreased by 8.9%, reflecting a partial, but insufficient, improvement in declared tax-paid volume by PMI's main local competitor as well as government tax enforcement. PMI's shipment volume of 18.1 billion units decreased by 24.5%. PMI's market share decreased by 14.9 points to 72.3%, with Marlboro down by 4.1 points to 16.9% and Fortune down by 20.5 points to 26.7%, partly offset by gains from PMI's other local brands.

LATIN AMERICA & CANADA REGION

2013Full-Year

Net revenues of $3.4 billionincreased by 1.0%, including unfavorable currency of $146 million. Excluding currency, net revenues increased by 5.4%, driven by favorable pricing of $252 million, principally in Argentina, Brazil, Canada and Mexico, partially offset by unfavorable volume/mix of $73 million.

Operating companies income of $1.1 billionincreased by 8.7%, including unfavorable currency of $64 million. Excluding currency, operating companies income increased by 14.9%, primarily driven by favorable pricing, partially offset by unfavorable volume/mix of $88 million.

Adjusted operating companies income increased by 5.8% as shown in the table below and detailed on Schedule 15. Adjusted operating companies income, excluding unfavorable currency, increased by 11.7%.

Latin America & Canada Operating Companies Income ($ Millions)
	Fourth-Quarter										Full-Year
									Excl.										Excl.
	2013			2012			Change		Curr.		2013			2012			Change		Curr.
Reported OCI	$	358		$	290		23.4	%	36.9	%	$	1,134		$	1,043		8.7	%	14.9	%
Asset impairment & exit costs	(5		)	(8		)					(5		)	(34		)
Adjusted OCI	$	363		$	298		21.8	%	34.9	%	$	1,139		$	1,077		5.8	%	11.7	%
Adjusted OCI Margin*	39.6		%	33.8		%	5.8		7.1		34.0		%	32.4		%	1.6		2.0
*Margins are calculated as adjusted OCI, divided by net revenues, excluding excise taxes.

Adjusted operating companies income margin, excluding unfavorable currency, increased by 2.0 points to 34.4%, as detailed on Schedule 15.

PMI's cigarette shipment volume of 97.3 billion units decreasedby 1.4%, principally due to a lower total market, predominantly in Brazil, partly offset by higher share, notably in Argentina and Brazil, and trade inventory movements in Mexico. While shipment volume of Marlboro of 38.7 billion units decreased by 1.4%, market share was up, notably in Brazil and Colombia by 0.7 and 0.9 points, respectively.

- -16 -

2013Fourth-Quarter

Net revenues of $917 millionincreased by 4.0%, including unfavorable currency of $66 million. Excluding currency, net revenues increased by 11.5%, driven by favorable pricing of $79 million, principally in Argentina, and favorable volume/mix of $22 million.

Operating companies income of $358 million increased by 23.4%, including unfavorable currency of $39 million. Excluding currency, operating companies income increased by 36.9%, primarily driven by favorable pricing and favorable volume/mix of $11 million.

Adjusted operating companies income increased by 21.8% as shown in the table above and detailed on Schedule 11. Adjusted operating companies income, excluding unfavorable currency, increased by 34.9%.

Adjusted operating companies income margin, excluding unfavorable currency, increased by 7.1 points to 40.9%, as detailed on Schedule 11, primarily reflecting the aforementioned favorable pricing and volume/mix.

PMI's cigarette shipment volume of 27.5 billion units increasedby 4.0%, principally reflecting a higher total market and share in Argentina and Mexico and a higher share in Brazil. Shipment volume of Marlboro of 11.1 billion units increased by 5.2%, driven principally by Mexico.

Latin America & Canada Key Market Commentaries

In Argentina, the total cigarette market decreased by 1.8% to 42.6 billion units in 2013. While PMI's cigarette shipment volume of 32.4 billion units decreased by 0.8%, market share increased by 0.7 points to a record 75.6%, driven by mid-price Philip Morris, up by 2.1 points to 41.5%, reflecting the positive impact of its capsule variants, partly offset by low-price Next, down by0.6 points to 2.5%. Share of Marlboro decreased by 0.3 points to 23.8%. In the fourth quarter of 2013, the total cigarette market increased by 1.3% to 11.4 billion units. PMI's cigarette shipment volume of 8.8 billion units increased by 3.9% and market share increased by 2.0 points to 76.6%, driven by Philip Morris, up by 2.7 points to 42.8%, partly offset by Next, down by 0.6 points to 2.3%. Market share of Marlboro was flat at 23.8%.

In Canada, the total cigarette market decreased by 1.2% to 28.9 billion units in 2013. While PMI's cigarette shipment volume of 10.8 billion units was flat, market share increased by 0.3 points to 37.2%, with premium brands Benson & Hedges and Belmont up by 0.1 point each to 2.4% and 2.6%, respectively. Market share of low-price brand Next was up by 1.7 points to 9.9%, partly offset by mid-price Number 7 and low-price Accord, down by 0.3 and 0.4 points to 4.2% and 2.9%, respectively. Market share of mid-price Canadian Classics was flat at10.1%. In the fourth quarter of 2013, the total cigarette market increased by 0.5% to 7.4 billion units. PMI's cigarette shipment volume of 2.8 billion units increased by 0.1%. PMI's market share decreased by 0.6points to 37.0%, with premium brands Benson & Hedges and Belmont up by 0.1 point each to 2.4% and 2.7%, respectively. Market share of low-price brand Next was up by 1.2 points to 10.3%, partly offset by mid-price Number 7 and low-price Accord, down 0.5 points each to 3.9% and 2.7%, respectively. Market share of mid-price Canadian Classics was down by 0.5 points to 9.8%.

In Mexico, the total cigarette market increased by 3.0% to 34.6 billion units in 2013, primarily reflecting a favorable comparison of price-driven trade inventory movements compared to 2012. PMI's cigarette shipment volume in 2013 of 25.4 billion units increased by 3.0%. PMI's 2013 market share was flat at 73.5%. While market share of Marlboro and Benson & Hedges was down by 1.3 and 0.7 share points to 52.3% and 5.5%, respectively, reflecting consumer down-trading, PMI's share of the premium price segment was up by 1.0 point to 90.7%. Market share of Delicados, the second best-selling brand in the market, increased by 0.8 points to 11.2%. In the fourth quarter of 2013, the total cigarette market increased by 9.2% to 9.8 billion units, primarily reflecting favorable trade

- -17 -

inventory movements ahead of PMI's price increases in December 2013 and a favorable comparison with the fourth quarter of 2012 in which the total market declined by 4.5%. Excluding the impact of the trade inventory movements, the total market is estimated to have been flat. PMI's cigarette shipment volume in the fourth quarter of 2013 of 7.4 billion units increased by 12.5% and market share increased by 2.2 points to 75.2%, flattered by the aforementioned trade inventory movements. Excluding the impact of the inventory movements, PMI's market share is estimated to have declined by 0.3 points to 73.3%, due principally to out-switching to competitive brands in the low-price segment.

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 2013, the company held an estimated 15.7% share of the total international cigarette market outside of the U.S., or 28.2% 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 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 September 30, 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.

###

- -18 -

					Schedule 1
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Condensed Statements of Earnings
For the Quarters Ended December 31,
($ in millions, except per share data)
(Unaudited)
	2013		2012 (1)		% Change
Net revenues	$	20,390	$	19,742	3.3	%
Cost of sales	2,602		2,681		(2.9	)%
Excise taxes on products (2)	12,601		11,853		6.3	%
Gross profit	5,187		5,208		(0.4	)%
Marketing, administration and research costs	1,676		1,929
Asset impairment and exit costs	301		33
Amortization of intangibles	22		24
Operating income (3)	3,188		3,222		(1.1	)%
Interest expense, net	252		226
Earnings before income taxes	2,936		2,996		(2.0	)%
Provision for income taxes	893		799		11.8	%
Equity (income)/loss in unconsolidated subsidiaries, net	7		6
Net earnings	2,036		2,191		(7.1	)%
Net earnings attributable to noncontrolling interests	49		96
Net earnings attributable to PMI	$	1,987	$	2,095	(5.2	)%
Per share data:(4)
Basic earnings per share	$	1.24	$	1.25	(0.8	)%
Diluted earnings per share	$	1.24	$	1.25	(0.8	)%
(1) Certain amounts have been reclassified to conform with the current year's presentation due to the separate disclosure of equity (income)/loss in unconsolidated subsidiaries, net.
(2) The segment detail of excise taxes on products sold for the quarters ended December 31, 2013 and 2012 is shown on Schedule 2.
(3) PMI's management evaluates segment performance and allocates resources based on operating companies income, which PMI defines as operating income, excluding general corporate expenses and amortization of intangibles, plus equity (income)/loss in unconsolidated subsidiaries, net. The reconciliation from operating income to operating companies income is as follows:
	2013		2012		% Change
Operating Income	$	3,188	$	3,222	(1.1	)%
Excluding:
- Amortization of Intangibles	22		24
- General corporate expenses (included in marketing, administration and research costs above)	32		55
Plus: Equity (income)/loss in unconsolidated subsidiaries, net	7		6
Operating Companies Income	$	3,235	$	3,295	(1.8	)%
(4) Net earnings and weighted-average shares used in the basic and diluted earnings per share computations for the quarters ended December 31, 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 December 31,
($ in millions)
(Unaudited)
			Net Revenues excluding Excise Taxes
			European Union			EEMA			Asia			Latin America & Canada			Total
	2013	Net Revenues (1)	$	7,048		$	5,349		$	5,211		$	2,782		$	20,390
		Excise Taxes on Products	(4,909		)	(3,092		)	(2,735		)	(1,865		)	(12,601		)
		Net Revenues excluding Excise Taxes	2,139			2,257			2,476			917			7,789
	2012	Net Revenues	$	6,684		$	5,016		$	5,403		$	2,639		$	19,742
		Excise Taxes on Products	(4,621		)	(2,877		)	(2,598		)	(1,757		)	(11,853		)
		Net Revenues excluding Excise Taxes	2,063			2,139			2,805			882			7,889
	Variance	Currency	85			(50		)	(268		)	(66		)	(299		)
		Acquisitions	—			—			—			—			—
		Operations	(9		)	168			(61		)	101			199
		Variance Total	76			118			(329		)	35			(100		)
		Variance Total (%)	3.7		%	5.5		%	(11.7		)%	4.0		%	(1.3		)%
		Variance excluding Currency	(9		)	168			(61		)	101			199
		Variance excluding Currency (%)	(0.4		)%	7.9		%	(2.2		)%	11.5		%	2.5		%
		Variance excluding Currency & Acquisitions	(9		)	168			(61		)	101			199
		Variance excluding Currency & Acquisitions (%)	(0.4		)%	7.9		%	(2.2		)%	11.5		%	2.5		%
	(1) 2013 Currency increased (decreased) net revenues as follows:
		European Union	$	274
		EEMA	(215		)
		Asia	(532		)
		Latin America & Canada	(235		)
			$	(708	)

																	Schedule 3
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Selected Financial Data by Business Segment
For the Quarters Ended December 31,
($ in millions)
(Unaudited)
	Operating Companies Income
		European Union			EEMA			Asia			Latin America & Canada			Total
2013		$	1,011		$	811		$	1,055		$	358		$	3,235
2012		955			921			1,129			290			3,295
% Change		5.9		%	(11.9		)%	(6.6		)%	23.4		%	(1.8		)%
Reconciliation:
For the quarter ended December 31, 2012		$	955		$	921		$	1,129		$	290		$	3,295
2012 Asset impairment and exit costs		5			5			15			8			33
2013 Asset impairment and exit costs		(13		)	(264		)	(19		)	(5		)	(301		)
Acquired businesses		—			—			—			—			—
Currency		39			(59		)	(155		)	(39		)	(214		)
Operations		25			208			85			104			422
For the quarter ended December 31, 2013		$	1,011		$	811		$	1,055		$	358		$	3,235

			Schedule 4
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Diluted Earnings Per Share
For the Quarters Ended December 31,
($ in millions, except per share data)
(Unaudited)
			Diluted
			E.P.S.
2013 Diluted Earnings Per Share			$	1.24		(1)
2012 Diluted Earnings Per Share			$	1.25		(1)
Change			$	(0.01	)
% Change			(0.8		)%
Reconciliation:
2012 Diluted Earnings Per Share			$	1.25		(1)
Special Items:
2012 Asset impairment and exit costs			0.01
2012 Tax items			(0.02		)
2013 Asset impairment and exit costs			(0.12		)
2013 Tax items			(0.01		)
Currency			(0.11		)
Interest			(0.01		)
Change in tax rate			(0.05		)
Impact of lower shares outstanding and share-based payments			0.06
Operations			0.24
2013 Diluted Earnings Per Share			$	1.24		(1)
(1) Basic and diluted EPS were calculated using the following (in millions):
	Q4 2013		Q4 2012
Net earnings attributable to PMI	$	1,987	$	2,095
Less distributed and undistributed earnings attributable
to share-based payment awards	10		12
Net earnings for basic and diluted EPS	$	1,977	$	2,083
Weighted-average shares for basic and diluted EPS	1,598		1,664

					Schedule 5
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Condensed Statements of Earnings
For the Years Ended December 31,
($ in millions, except per share data)
(Unaudited)
	2013		2012 (1)		% Change
Net revenues	$	80,029	$	77,393	3.4	%
Cost of sales	10,410		10,373		0.4	%
Excise taxes on products (2)	48,812		46,016		6.1	%
Gross profit	20,807		21,004		(0.9	)%
Marketing, administration and research costs	6,890		6,961
Asset impairment and exit costs	309		83
Amortization of intangibles	93		97
Operating income (3)	13,515		13,863		(2.5	)%
Interest expense, net	973		859
Earnings before income taxes	12,542		13,004		(3.6	)%
Provision for income taxes	3,670		3,833		(4.3	)%
Equity (income)/loss in unconsolidated subsidiaries, net	22		17
Net earnings	8,850		9,154		(3.3	)%
Net earnings attributable to noncontrolling interests	274		354
Net earnings attributable to PMI	$	8,576	$	8,800	(2.5	)%
Per share data:(4)
Basic earnings per share	$	5.26	$	5.17	1.7	%
Diluted earnings per share	$	5.26	$	5.17	1.7	%
(1) Certain amounts have been reclassified to conform with the current year's presentation due to the separate disclosure of equity (income)/loss in unconsolidated subsidiaries, net.
(2) The segment detail of excise taxes on products sold for the year ended 2013 and 2012 is shown on Schedule 6.
(3) PMI's management evaluates segment performance and allocates resources based on operating companies income, which PMI defines as operating income, excluding general corporate expenses and amortization of intangibles, plus equity (income)/loss in unconsolidated subsidiaries, net. The reconciliation from operating income to operating companies income is as follows:
	2013		2012		% Change
Operating Income	$	13,515	$	13,863	(2.5	)%
Excluding:
- Amortization of Intangibles	93		97
- General corporate expenses (included in marketing, administration and research costs above)	187		210
Plus: Equity (income)/loss in unconsolidated subsidiaries, net	22		17
Operating Companies Income	$	13,773	$	14,153	(2.7	)%
(4) Net earnings and weighted-average shares used in the basic and diluted earnings per share computations for the year ended 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 Years Ended December 31,
($ in millions)
(Unaudited)
			Net Revenues excluding Excise Taxes
			European Union			EEMA			Asia			Latin America & Canada			Total
	2013	Net Revenues (1)	$	28,303		$	20,695		$	20,987		$	10,044		$	80,029
		Excise Taxes on Products	(19,707		)	(11,929		)	(10,486		)	(6,690		)	(48,812		)
		Net Revenues excluding Excise Taxes	8,596			8,766			10,501			3,354			31,217
	2012	Net Revenues	$	27,338		$	19,272		$	21,071		$	9,712		$	77,393
		Excise Taxes on Products	(18,812		)	(10,940		)	(9,873		)	(6,391		)	(46,016		)
		Net Revenues excluding Excise Taxes	8,526			8,332			11,198			3,321			31,377
	Variance	Currency	205			(98		)	(726		)	(146		)	(765		)
		Acquisitions	—			—			—			—			—
		Operations	(135		)	532			29			179			605
		Variance Total	70			434			(697		)	33			(160		)
		Variance Total (%)	0.8		%	5.2		%	(6.2		)%	1.0		%	(0.5		)%
		Variance excluding Currency	(135		)	532			29			179			605
		Variance excluding Currency (%)	(1.6		)%	6.4		%	0.3		%	5.4		%	1.9		%
		Variance excluding Currency & Acquisitions	(135		)	532			29			179			605
		Variance excluding Currency & Acquisitions (%)	(1.6		)%	6.4		%	0.3		%	5.4		%	1.9		%
	(1) 2013 Currency increased (decreased) net revenues as follows:
		European Union	$	677
		EEMA	(333		)
		Asia	(1,198		)
		Latin America & Canada	(548		)
			$	(1,402	)

														Schedule 7
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Selected Financial Data by Business Segment
For the Years Ended December 31,
($ in millions)
(Unaudited)
	Operating Companies Income
		European Union			EEMA			Asia			Latin America & Canada			Total
2013		$	4,238		$	3,779		$	4,622		$	1,134		$	13,773
2012		4,187			3,726			5,197			1,043			14,153
% Change		1.2		%	1.4		%	(11.1		)%	8.7		%	(2.7		)%
Reconciliation:
For the year ended December 31, 2012		$	4,187		$	3,726		$	5,197		$	1,043		$	14,153
2012 Asset impairment and exit costs		5			5			39			34			83
2013 Asset impairment and exit costs		(13		)	(264		)	(27		)	(5		)	(309		)
Acquired businesses		—			—			—			—			—
Currency		92			(122		)	(548		)	(64		)	(642		)
Operations		(33		)	434			(39		)	126			488
For the year ended December 31, 2013		$	4,238		$	3,779		$	4,622		$	1,134		$	13,773

			Schedule 8
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Diluted Earnings Per Share
For the Years Ended December 31,
($ in millions, except per share data)
(Unaudited)
			Diluted
			E.P.S.
2013 Diluted Earnings Per Share			$	5.26		(1)
2012 Diluted Earnings Per Share			$	5.17		(1)
Change			$	0.09
% Change			1.7		%
Reconciliation:
2012 Diluted Earnings Per Share			$	5.17		(1)
Special Items:
2012 Asset impairment and exit costs			0.03
2012 Tax items			0.02
2013 Asset impairment and exit costs			(0.12		)
2013 Tax items			(0.02		)
Currency			(0.34		)
Interest			(0.05		)
Change in tax rate			(0.01		)
Impact of lower shares outstanding and share-based payments			0.23
Operations			0.35
2013 Diluted Earnings Per Share			$	5.26		(1)
(1) Basic and diluted EPS were calculated using the following (in millions):
	YTD December 2013		YTD December 2012
Net earnings attributable to PMI	$	8,576	$	8,800
Less distributed and undistributed earnings attributable
to share-based payment awards	45		48
Net earnings for basic and diluted EPS	$	8,531	$	8,752
Weighted-average shares for basic and diluted EPS	1,622		1,692

					Schedule 9
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Condensed Balance Sheets
($ in millions, except ratios)
(Unaudited)
	December 31,				December 31,
	2013				2012
Assets
Cash and cash equivalents	$	2,154			$	2,983
All other current assets	14,698				13,607
Property, plant and equipment, net	6,755				6,645
Goodwill	8,893				9,900
Other intangible assets, net	3,193				3,619
Investments in unconsolidated subsidiaries	1,536				24
Other assets	939				892
Total assets	$	38,168			$	37,670
Liabilities and Stockholders' (Deficit) Equity
Short-term borrowings	$	2,400			$	2,419
Current portion of long-term debt	1,255				2,781
All other current liabilities	13,411				11,816
Long-term debt	24,023				17,639
Deferred income taxes	1,477				1,875
Other long-term liabilities	1,876				2,993
Total liabilities	44,442				39,523
Redeemable noncontrolling interest	—				1,301
Total PMI stockholders' deficit	(7,766		)		(3,476		)
Noncontrolling interests	1,492				322
Total stockholders' deficit	(6,274		)		(3,154		)
Total liabilities and stockholders' (deficit) equity	$	38,168			$	37,670
Total debt	$	27,678			$	22,839
Total debt to EBITDA	1.88			(1)	1.54			(1)
Net debt to EBITDA	1.74			(1)	1.34			(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 December 31,
($ 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
$	7,048	$	4,909	$	2,139	$	85		$	2,054	$	—	$	2,054	European Union	$	6,684	$	4,621	$	2,063	3.7	%	(0.4	)%	(0.4	)%
5,349		3,092		2,257		(50		)	2,307		—		2,307		EEMA	5,016		2,877		2,139		5.5	%	7.9	%	7.9	%
5,211		2,735		2,476		(268		)	2,744		—		2,744		Asia	5,403		2,598		2,805		(11.7	)%	(2.2	)%	(2.2	)%
2,782		1,865		917		(66		)	983		—		983		Latin America & Canada	2,639		1,757		882		4.0	%	11.5	%	11.5	%
$	20,390	$	12,601	$	7,789	$	(299	)	$	8,088	$	—	$	8,088	PMI Total	$	19,742	$	11,853	$	7,889	(1.3	)%	2.5	%	2.5	%
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
$	1,011					$	39		$	972	$	—	$	972	European Union					$	955	5.9	%	1.8	%	1.8	%
811						(59		)	870		—		870		EEMA					921		(11.9	)%	(5.5	)%	(5.5	)%
1,055						(155		)	1,210		—		1,210		Asia					1,129		(6.6	)%	7.2	%	7.2	%
358						(39		)	397		—		397		Latin America & Canada					290		23.4	%	36.9	%	36.9	%
$	3,235					$	(214	)	$	3,449	$	—	$	3,449	PMI Total					$	3,295	(1.8	)%	4.7	%	4.7	%

																															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 December 31,
($ 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
$	1,011	$	(13	)	$	1,024		$	39		$	985	$	—	$	985		European Union	$	955	$	(5	)	$	960		6.7	%	2.6	%	2.6	%
811		(264		)	1,075			(59		)	1,134		—		1,134			EEMA	921		(5		)	926			16.1	%	22.5	%	22.5	%
1,055		(19		)	1,074			(155		)	1,229		—		1,229			Asia	1,129		(15		)	1,144			(6.1	)%	7.4	%	7.4	%
358		(5		)	363			(39		)	402		—		402			Latin America & Canada	290		(8		)	298			21.8	%	34.9	%	34.9	%
$	3,235	$	(301	)	$	3,536		$	(214	)	$	3,750	$	—	$	3,750		PMI Total	$	3,295	$	(33	)	$	3,328		6.3	%	12.7	%	12.7	%
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
$	985	$	2,054		48.0		%				$	985	$	2,054	48.0		%	European Union	$	960	$	2,063		46.5		%			1.5		1.5
1,134		2,307			49.2		%				1,134		2,307		49.2		%	EEMA	926		2,139			43.3		%			5.9		5.9
1,229		2,744			44.8		%				1,229		2,744		44.8		%	Asia	1,144		2,805			40.8		%			4.0		4.0
402		983			40.9		%				402		983		40.9		%	Latin America & Canada	298		882			33.8		%			7.1		7.1
$	3,750	$	8,088		46.4		%				$	3,750	$	8,088	46.4		%	PMI Total	$	3,328	$	7,889		42.2		%			4.2		4.2
(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 December 31,
(Unaudited)
	2013			2012			% Change
Reported Diluted EPS	$	1.24		$	1.25		(0.8	)%
Adjustments:
Asset impairment and exit costs	0.12			0.01
Tax items	0.01			(0.02		)
Adjusted Diluted EPS	$	1.37		$	1.24		10.5	%
Less:
Currency impact	(0.11		)
Adjusted Diluted EPS, excluding Currency	$	1.48		$	1.24		19.4	%

								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 December 31,
(Unaudited)
	2013			2012		% Change
Reported Diluted EPS	$	1.24		$	1.25	(0.8	)%
Less:
Currency impact	(0.11		)
Reported Diluted EPS, excluding Currency	$	1.35		$	1.25	8.0	%

																										Schedule 14
PHILIP MORRIS INTERNATIONAL INC.
and Subsidiaries
Reconciliation of Non-GAAP Measures
Adjustments for the Impact of Currency and Acquisitions
For the Years Ended December 31,
($ 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
$	28,303	$	19,707	$	8,596	$	205		$	8,391	$	—	$	8,391	European Union	$	27,338	$	18,812	$	8,526	0.8	%	(1.6	)%	(1.6	)%
20,695		11,929		8,766		(98		)	8,864		—		8,864		EEMA	19,272		10,940		8,332		5.2	%	6.4	%	6.4	%
20,987		10,486		10,501		(726		)	11,227		—		11,227		Asia	21,071		9,873		11,198		(6.2	)%	0.3	%	0.3	%
10,044		6,690		3,354		(146		)	3,500		—		3,500		Latin America & Canada	9,712		6,391		3,321		1.0	%	5.4	%	5.4	%
$	80,029	$	48,812	$	31,217	$	(765	)	$	31,982	$	—	$	31,982	PMI Total	$	77,393	$	46,016	$	31,377	(0.5	)%	1.9	%	1.9	%
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
$	4,238					$	92		$	4,146	$	—	$	4,146	European Union					$	4,187	1.2	%	(1.0	)%	(1.0	)%
3,779						(122		)	3,901		—		3,901		EEMA					3,726		1.4	%	4.7	%	4.7	%
4,622						(548		)	5,170		—		5,170		Asia					5,197		(11.1	)%	(0.5	)%	(0.5	)%
1,134						(64		)	1,198		—		1,198		Latin America & Canada					1,043		8.7	%	14.9	%	14.9	%
$	13,773					$	(642	)	$	14,415	$	—	$	14,415	PMI Total					$	14,153	(2.7	)%	1.9	%	1.9	%

																															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 Years Ended December 31,
($ 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
$	4,238	$	(13	)	$	4,251		$	92		$	4,159	$	—	$	4,159		European Union	$	4,187	$	(5	)	$	4,192		1.4	%	(0.8	)%	(0.8	)%
3,779		(264		)	4,043			(122		)	4,165		—		4,165			EEMA	3,726		(5		)	3,731			8.4	%	11.6	%	11.6	%
4,622		(27		)	4,649			(548		)	5,197		—		5,197			Asia	5,197		(39		)	5,236			(11.2	)%	(0.7	)%	(0.7	)%
1,134		(5		)	1,139			(64		)	1,203		—		1,203			Latin America & Canada	1,043		(34		)	1,077			5.8	%	11.7	%	11.7	%
$	13,773	$	(309	)	$	14,082		$	(642	)	$	14,724	$	—	$	14,724		PMI Total	$	14,153	$	(83	)	$	14,236		(1.1	)%	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
$	4,159	$	8,391		49.6		%				$	4,159	$	8,391	49.6		%	European Union	$	4,192	$	8,526		49.2		%			0.4		0.4
4,165		8,864			47.0		%				4,165		8,864		47.0		%	EEMA	3,731		8,332			44.8		%			2.2		2.2
5,197		11,227			46.3		%				5,197		11,227		46.3		%	Asia	5,236		11,198			46.8		%			(0.5	)	(0.5	)
1,203		3,500			34.4		%				1,203		3,500		34.4		%	Latin America & Canada	1,077		3,321			32.4		%			2.0		2.0
$	14,724	$	31,982		46.0		%				$	14,724	$	31,982	46.0		%	PMI Total	$	14,236	$	31,377		45.4		%			0.6		0.6
(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 Years Ended December 31,
(Unaudited)
	2013			2012		% Change
Reported Diluted EPS	$	5.26		$	5.17	1.7	%
Adjustments:
Asset impairment and exit costs	0.12			0.03
Tax items	0.02			0.02
Adjusted Diluted EPS	$	5.40		$	5.22	3.4	%
Less:
Currency impact	(0.34		)
Adjusted Diluted EPS, excluding Currency	$	5.74		$	5.22	10.0	%

								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 Years Ended December 31,
(Unaudited)
	2013			2012		% Change
Reported Diluted EPS	$	5.26		$	5.17	1.7	%
Less:
Currency impact	(0.34		)
Reported Diluted EPS, excluding Currency	$	5.60		$	5.17	8.3	%

			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
	December 31,		December 31,
	2013		2012 (1)
Earnings before income taxes	$	12,542	$	13,004
Interest expense, net	973		859
Depreciation and amortization	882		898
Extraordinary, unusual or non-recurring expenses, net (2)	309		83
EBITDA	$	14,706	$	14,844
	December 31,		December 31,
	2013		2012 (1)
Short-term borrowings	$	2,400	$	2,419
Current portion of long-term debt	1,255		2,781
Long-term debt	24,023		17,639
Total Debt	$	27,678	$	22,839
Less: Cash and cash equivalents	2,154		2,983
Net Debt	$	25,524	$	19,856
Ratios
Total Debt to EBITDA	1.88		1.54
Net Debt to EBITDA	1.74		1.34
(1) Certain amounts have been reclassified to conform with the current year's presentation due to the separate disclosure of equity (income)/loss in unconsolidated subsidiaries, net.
(2) Asset Impairment and Exit Costs at Operating Income level.

													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 Years Ended December 31,
($ in millions)
(Unaudited)
	For the Quarters Ended							For the Years Ended
	December 31,							December 31,
	2013			2012		% Change		2013			2012		% Change
Net cash provided by operating activities(a)	$	2,320		$	1,650	40.6	%	$	10,135		$	9,421	7.6	%
Less:
Capital expenditures	379			337				1,200			1,056
Free cash flow	$	1,941		$	1,313	47.8	%	$	8,935		$	8,365	6.8	%
Less:
Currency impact	(285		)					(420		)
Free cash flow, excluding currency	$	2,226		$	1,313	69.5	%	$	9,355		$	8,365	11.8	%
	For the Quarters Ended							For the Years Ended
	December 31,							December 31,
	2013			2012		% Change		2013			2012		% Change
Net cash provided by operating activities(a)	$	2,320		$	1,650	40.6	%	$	10,135		$	9,421	7.6	%
Less:
Currency impact	(301		)					(451		)
Net cash provided by operating activities, excluding currency	$	2,621		$	1,650	58.8	%	$	10,586		$	9,421	12.4	%
(a) Operating cash flow.

EX-99.2

Exhibit 99.2

Philip Morris International Inc.

2013 Fourth-Quarter and Full-Year Results Conference Call

February 6, 2014

NICK ROLLI

(SLIDE 1.)

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

(SLIDE 2.)

During our call today, we will be talking about results for the fourth-quarter and full-year 2013 and comparing them to the same periods in 2012, unless otherwise stated. References to PMI volumes are to PMI shipments. Industry volume and market shares are the latest data available from a number of internal and external sources. Net revenues exclude excise taxes. Operating Companies Income, or “OCI”, is defined as operating income excluding general corporate expenses and the amortization of intangibles, plus equity income or loss in unconsolidated subsidiaries, net. 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, 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 are at the end of today’s webcast slides, which are 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 André Calantzopoulos, our Chief Executive Officer. Jacek Olczak, our Chief Financial Officer, will join André for the question and answer period.

André.

1

Exhibit 99.2

ANDRE CALANTZOPOULOS

(SLIDE 4.)

Thank you Nick, and welcome ladies and gentlemen.

As expected, we finished 2013 with a strong fourth quarter. While our cigarette volume declined by 1.9%, excluding the Philippines, our net revenues and adjusted OCI increased by 2.5% and 12.7%, respectively, excluding currency. Most importantly, our adjusted diluted EPS grew by 19.4% on an ex-currency basis.

(SLIDE 5.)

Our results were strong across all four Regions. Adjusted OCI excluding currency increased in the fourth quarter by 2.6% in the EU Region, 22.5% in EEMA, 7.4% in Asia and by 34.9% in the Latin America & Canada Region. On a full year basis, EEMA and Latin America & Canada grew adjusted OCI at a double digit rate in 2013, excluding currency.

(SLIDE 6.)

For the full year 2013, our reported diluted EPS reached $5.26. This includes the 10 cent charge for the restructuring of our business in Egypt, which we announced last week, as well as 4 cents in charges that we had previously disclosed. Consequently, our adjusted diluted EPS was $5.40 in 2013. Excluding the unfavorable currency of 34 cents per share, this represents a growth rate of 10.0% compared to the previous year’s adjusted diluted EPS of $5.22.

(SLIDE 7.)

Currencies, particularly in emerging markets, continue to be extremely volatile. At prevailing exchange rates, we project 71 cents in unfavorable currency in our EPS guidance for 2014. Emerging markets account for nearly 60% of this total. The fact that we are currently hedged for approximately 60% of our forecast sales to Japan, with an effective rate of 95 Yen to the US Dollar, is included in this projection.

(SLIDE 8.)

Our results confirm that our business fundamentals are robust. However, as I outlined in November, we expect to continue to face specific challenges in 2014 that affected our full year 2013 results. Furthermore, we intend to make significant investments in and increase expenditures behind our Reduced-Risk Products in preparation for city pilot tests later this year and our first national launch in 2015, as well as additional investments behind our current portfolio.

2

Exhibit 99.2

Our reported diluted EPS guidance for 2014, at prevailing exchange rates, is in a range of $5.02 to $5.12, versus $5.26 in 2013.

Our 2014 guidance corresponds to a growth rate, excluding currency, of approximately 6% to 8%, compared to our adjusted diluted EPS of $5.40 in 2013.

(SLIDE 9.)

Japan is projected to remain a challenging market for us in 2014. The Government is increasing the consumption tax in April from 5% to 8%. The related retail price pass-on is around 14 Yen per pack. We have applied to the Minister of Finance for approval to increase the prices of our Marlboro, Lark and Philip Morris brands by 20 Yen per pack and other brands by up to 10 Yen per pack. Subject to approval by the Minister of Finance, the new prices are expected to take effect on April 1^st. The new prices are expected to result in a slight acceleration of the total market decline to around 3.0% to 3.5% in 2014, compared to the 2% decline of 2013.

Our overall market share declined in 2013 from 27.7% to 26.7%, and to 25.9% in the fourth quarter. This was driven principally by the success of new competitive products in the menthol segment and was somewhat distorted by the pipelining of competitive product launches in the fourth quarter. Marlboro remains resilient and should be boosted by the roll-out of the “Don’t Be A Maybe, Be Marlboro” campaign that has been successful in numerous markets in the EU and other Regions. We also have plans to introduce various new product offers under the Marlboro and Lark trademarks. Barring any unforeseen adverse competitive price actions, we expect that these launches, coupled with increased spending to support them, should enable us to stabilize our market share during the year. However, we do expect that our 2014 average share will be below the 2013 average.

(SLIDE 10.)

The second challenging market in Asia is the Philippines. We estimate the local manufacturer Mighty Corporation is producing about double the volume that it declares to the Bureau of Internal Revenue. This has prevented us from being able to operate on a level playing field and continues to result in a significant tax revenue loss for the government. The planned implementation of a system of fiscal tax stamps in the second quarter this year will hopefully help to address this issue. We are continuing to encourage the authorities to act decisively and welcome the decision of Congress to hold hearings on this matter, as well as the decision of the Bureau of Customs to suspend the license of Mighty Corporation to operate a customs bonded warehouse.

Since the end of November, we have seen the Mighty brand stick price gradually rise from 1 Peso to 1 Peso 50 and the Marvels brand stick price rise to 1 Peso 25. This is a positive development. However, their Marvels brand is still selling at a wholesale price of 183 Pesos per carton, which is below the 191 Pesos

3

Exhibit 99.2

required merely to cover the new excise tax and VAT in force as of January this year. We do not know at this stage how Mighty Corporation intends to reflect the new tax levels.

On the demand side, the good news is that, while tax-paid industry volume was down by 15.6% to an estimated 86.3 billion units in 2013, Nielsen data indicates that there was only a minor decline in actual consumption. Adult smoking incidence and adult daily consumption remained at similar levels in the second half of 2013 to those that prevailed in 2012.

In light of the significant tax-driven price increases incurred by Marlboro and Fortune, total consumption was sustained by adult smoker down-trading to the then 1 Peso per stick price segment. This super-low price segment increased its share from 17.1% in the fourth quarter of 2012 to 41.2% in the same period in 2013, mainly at the expense of our premium and mid-price brands. While we have reinforced our segment participation, our overall market share in the fourth quarter declined by 14.9 points to 72.3%.

Our ability to enhance our profitability through higher prices remains constrained by the flexibility that Mighty Corporation derives from its tax under-declaration. In the meantime, the investments we are making to defend our business are shared with our partner. We continue to hold a clear leading share in a market where annual adult consumption is estimated at around 100 billion units and we have the brand portfolio and the national distribution to take advantage of the planned future tax equalization. We thus remain optimistic that, once the current hurdles are overcome, the Philippines will be a significant contributor to our profit growth in the Region.

(SLIDE 11.)

While discussing Asian markets, let me provide an update on Indonesia, where total industry volume increased by 1.9% in 2013 to an estimated 308 billion units. The slower industry volume growth can be in large part attributed to the economic slowdown and the impact of higher fuel and food prices on lower-income adult consumers. In fact, during 2013, the volume of premium and mid-price cigarettes increased by 5.2% and 3.4%, respectively, while the volume of low-price brands declined by 6.6%. In 2014, we expect industry volume growth to moderate to around 1% due to the weaker economy and expected significant price increases in the low-price category following the introduction of a new regulation restricting the preferential tax treatment of so-called sister companies.

In 2013, our market share grew by 0.5 points to 36.1%, driven by the strong performance of our lighter-tasting, machine-made kretek brands Sampoerna A and U Mild, as well as by Marlboro in the “white” segment. In the fourth quarter, their share growth was more than offset by a weaker performance of our hand-rolled kretek brands Dji Sam Soe and Sampoerna Kretek, due to the segment’s decline and the fact that they both sell currently at disadvantageous price points compared to competitive brands.

4

Exhibit 99.2

In 2014, we expect to benefit from the continued growth of the lighter-tasting, machine-made kretek segment, which increased by 1.9 points to 40.5% last year and in which Sampoerna A and U Mild had a growing 46.4% segment share. In addition, we are gaining share in the full-flavor machine-made kretek segment with Dji Sam Soe Magnum.

Finally, we believe that the government’s introduction in January of a regional tax of 10% should be manageable as it equates to a pass-on of between 3% and 6%.

(SLIDE 12.)

Let me now turn to the EU Region.

In the fourth quarter, cigarette industry volume in the Region declined by 5.8%, a rate of decline similar to the third quarter reflecting a tangible moderation compared to the trend we witnessed in the first half of 2013. Illicit trade appears to have stabilized, albeit at a high level. The expansion of the fine cut category has slowed given the compression of the tax and price differential with cigarettes. Finally, while still expanding in some markets, such as France, Spain and the UK, the growth in demand for e-cigarettes in the Region as a whole has decelerated. We therefore expect cigarette industry volume trends to show an improvement compared to the 7.5% decline in 2013 and are currently forecasting a decline in 2014 in a range of 6% to 7%.

This improvement is taking place in an environment where excise tax increases have been reasonable and structural improvements continue to take place. The one market of concern is Italy, where the predominantly ad-valorem structure is encouraging the growth of the super-low 4 Euro per pack price segment and eroding the tax revenue base of the government. We hope that the Italian government will rapidly address this issue and implement the necessary tax reform. Until this materializes, we will prudently balance the delicate price, volume and profit equation in Italy.

(SLIDE 13.)

In 2013, we increased our overall market share in the EU Region by 0.5 points to 38.5%. This was driven by the strength of our brand portfolio with Marlboro, L&M, Chesterfield and Philip Morris,all gaining share in the Region. We expect this momentum to continue as our market share grew further to 38.6% in the fourth quarter.

(SLIDE 14.)

Our share gains are very broadly based. We increased our market share in each of the six largest cigarette markets by volume in the full year 2013. Our continued

5

Exhibit 99.2

share momentum positions us well for 2014, when we expect to be able to again outperform the industry.

(SLIDE 15.)

I would also like to highlight our strong performance in the EEMA Region, notably in Russia.

Our strong pricing actions enabled us to continue to significantly expand our profitability in 2013 even though cigarette industry volume declined by an estimated 7.6%. Despite the slower implementation of new retail prices by some of our competitors, we recorded only a modest share decline of 0.3 points to 26.1%. This was achieved in particular by the continued outperformance of above premium-priced Parliament.

In January this year, the government implemented the next planned and largest excise tax increase, resulting in an average pass-on of 8 Rubles a pack. In anticipation, we increased most of our maximum retail selling prices by 9 Rubles per pack in December last year, though prices will only go up at retail later this month. For the full-year 2014, we expect to continue to expand our profitability at a high single digit rate even though cigarette industry volume is expected to decline by between 9% and 11%, reflecting price elasticity, illicit trade and a weaker economy.

(SLIDE 16.)

Cigarette industry volume in Turkey was impacted by significant trade loading at the end of 2012 and by an increase in illicit trade in 2013. As a result, industry volume declined by an estimated 7.6% last year, while we estimate that the underlying decline was approximately 3.5%. Provided that there is no further increase in illicit trade, we expect underlying cigarette industry volume to stabilize in 2014.

Our share has remained resilient in the face of increased price competition in the low and super-low price segments, with a decline of just 0.2 points to 45.5% in 2013. We successfully line-extended Chesterfield into the super-low price segment and continued to improve our mix thanks to the success of Parliament in the premium and Muratti in the mid-price segments.

This January, the government increased the specific excise tax and the minimum tax while maintaining the ad-valorem rate unchanged. This resulted in a pass-on of around TRY 0.28 per pack at the retail level. We increased the prices of our brands by around half a Lira on average, thus boosting our unit margins.

(SLIDE 17.)

6

Exhibit 99.2

We achieved strong results across our Latin America & Canada Region with share gains in Argentina, Brazil, Canada and Colombia and a stable 73.5% market share in Mexico.

(SLIDE 18.)

Looking at our top 30 OCI markets worldwide, we increased our share in 2013 by 0.5 points to 34.9%. Our market share grew or was stable in 23 of these markets, further emphasizing that our underlying business remains strong.

(SLIDE 19.)

Marlboro has been a key driver of this excellent share momentum. In 2013, excluding China and the Philippines, Marlboro gained share in all four Regions, with a particularly strong performance not only in the EU Region but also in the Latin America & Canada Region and across North Africa.

(SLIDE 20.)

Our strong market share momentum should enable us to improve our volume performance in 2014 and outperform the industry. In 2013, we estimate that global cigarette industry volume, excluding the USA and China, declined by 3%. This year, we are forecasting a decline in a range of 2% to 3%.

(SLIDE 21.)

Pricing was the key driver behind our income improvement, excluding currency, in 2013. We achieved a pricing variance of $2.1 billion. This was above our historical average, reflecting the timing of tax-driven price increases and unusually large gains due to inventory movements, most notably in the Philippines. In 2014, we expect these gains to be lower. Consequently the first quarter’s EPS growth rate, excluding currency, is expected to be below our average for the year.

Please note that, as of today, we have implemented or announced almost 60% of the pricing that is built into our 2014 EPS guidance.

(SLIDE 22.)

While revenue growth remains the key driver of our business growth, we continue to be very focused on cost controls and productivity gains. Our adjusted OCI margin increased by 0.6 points in 2013, excluding currency, from 45.4% to 46.0%.

This is in part attributable to the successful completion of cost savings and productivity improvement programs, which generated over $300 million in 2013. We target a further $300 million in annual productivity gains in 2014, which should moderate inflationary input cost increases.

7

Exhibit 99.2

(SLIDE 23.)

We have recently completed four business development projects that will be accretive to earnings in 2014. We purchased the remaining 20% shareholding from our business partner in Mexico. We took a 49% participation in Arab Investors-TA, which is involved in the manufacturing and distribution of international brands of cigarettes in Algeria. We purchased a 20% shareholding in our Russian distributor, Megapolis, and finally, we have restructured our business in Egypt to enhance our growth and income potential in this 80 billion unit market.

These business development projects are expected to have a net positive EPS impact of approximately 10 cents in 2014.

(SLIDE 24.)

In 2013, we increased our free cash flow, excluding unfavorable currency, by 11.8% to $9.4 billion. As foreseen, the growth rate exceeded that of net earnings, driven largely by a reduction in working capital.

In 2014, we expect free cash flow to be unfavorably impacted by currency and a foreseen increase in working capital at the end of this year attributable to the timing of excise tax increases and related inventory movements.

(SLIDE 25.)

We remain committed to generously rewarding our shareholders through a combination of dividends and share repurchases. In September last year, we increased our dividend by a further 10.6%, bringing the cumulative increase since 2008 to 104.3%. Our target dividend pay-out ratio remains an attractive 65% and our dividend yield last Friday was 4.8%

(SLIDE 26.)

Last year, we spent $6.0 billion to repurchase 67.2 million shares. We also spent over $2 billion on the four business development opportunities that I described. As a result, and given both the projected significant unfavorable currency impact on our reported results in 2014 and the fact that we are approaching the high end of the ratios supporting our credit rating, we are scaling back our target share repurchases in 2014 to $4.0 billion. Please note that the rating agencies use different methodologies, some preferring to use gross rather than net debt measures and some weighting the company’s cash position differently from others.

(SLIDE 27.)

As we emphasized last November, 2014 is going to be a pivotal year for Reduced-Risk Products, our greatest growth opportunity. Last month, we announced that

8

Exhibit 99.2

we are building a new manufacturing facility near Bologna, Italy, that, along with a pilot plant in the same area, will provide an annual capacity of up to 30 billion units. The associated capital expenditures of up to €500 million are within the previously disclosed range of €500 to €600 million.

This year we will obtain the results of the clinical trials that we started in 2013. The data from these studies will be an essential part of our evidence package to substantiate that the use of our Platform 1 product results in a biological impact profile close to that of cessation. During the first half of this year, we will continue with our perception and behavioral studies and finalize the packaging and labeling in anticipation of planned city pilot tests in the second half of 2014 and our first national launch in 2015. In addition, we plan to enter the e-cigarette market during the second half of 2014.

As previously disclosed, we will increase our Reduced-Risk Product-related expenditures in R&D, operations and commercial activities by more than $100 million this year in order to meet this accelerated schedule.

(SLIDE 28.)

In conclusion, 2014 will be a very important year as we increase our investments behind both our conventional and our Reduced-Risk Products. The outlook for the Philippines and for the EU Region as a whole is improving, while Japan remains a significant challenge. We enter 2014 with robust fundamentals and good market share momentum behind our superior brand portfolio led by Marlboro. In addition, our profitability will benefit from the four business development projects that I outlined. However, currency volatility in emerging markets has increased significantly and we are only one month into the year.

Our expectation is that we should be able, as of 2015, to meet our annual currency-neutral net revenues and adjusted OCI targets. Of course, the level of our share repurchases will depend on the impact of exchange rates, the interest rate environment and corporate tax reform here in the United States.

There are a number of important factors that underpin our belief:

• Sequential improvements in the performance of challenging markets, in particular the Philippines;

• Further structural improvements in excise tax systems, notably in the EU Region;

• Our superior brand portfolio, led by a re-invigorated Marlboro;

• Strong pricing power based on our brands;

• An increased focus on cost controls and productivity gains; and

• Our commercialization of Reduced-Risk Products.

Finally, our strong free cash flow will be used to reward our shareholders through generous dividends and share repurchase programs.

9

Exhibit 99.2

(SLIDE 29.)

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

(SLIDE 30.)

NICK ROLLI

Well, thank you for joining us. That concludes our call today. If you have any follow-up questions, please contact the investor relations team, who are currently in New York. Our next presentation will be at the CAGNY Conference on Tuesday, February 18^th.

Thank you again and have a nice day.

10

EX-99.3

2013 Fourth-Quarter and Full-Year Results February 6, 2014 Exhibit 99.3

2 Introduction ● Unless otherwise stated, we will be talking about results for the fourth-quarter or full-year 2013 and comparing them to the same periods in 2012 ● References to PMI volumes are to PMI shipments ● Industry volume and market shares are the latest data available from a number of internal and external sources ● Net revenues exclude excise taxes ● Operating Companies Income, or “OCI”, is defined as operating income, excluding general corporate expenses and the amortization of intangibles, plus equity (income) or loss in unconsolidated subsidiaries, net. 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, 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 September 30, 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

Strong Fourth-Quarter Financial Results 4 2.5% 12.7% 19.4% Net Revenues Adjusted OCI Adjusted Diluted EPS Growth (Q4, 2013 vs. Q4, 2012)(a) (a) Excluding currency Source: PMI Financials

Strong Fourth-Quarter Financial Results 5 2.6 22.5 7.4 34.9 EU EEMA Asia LA&C Adjusted OCI Growth (Q4, 2013 vs. Q4, 2012)(a) (a) Excluding currency Source: PMI Financials 40 20 10 0 (%)

Bridging Reported Diluted EPS to Adjusted Diluted EPS, excluding Currency 6 0.10 0.04 0.34 5.26 5.40 5.74 Reported Diluted EPS Egypt Restructuring Charge Charges Disclosed Previously Adjusted Diluted EPS Currency Unfavorability Adjusted Diluted EPS, excl. Currency (a) Included in asset impairment and exit costs Source: PMI Financials 2013 Diluted EPS ($/share) (a)

● Currencies remain very volatile, especially in emerging markets ● At prevailing exchange rates, we project 71 cents unfavorable currency at EPS level in 2014 ● Emerging markets account for nearly 60% of this projected currency headwind ● We are currently hedged for approximately 60% of our forecast sales to Japan with an effective rate of 95 Yen to the US Dollar in 2014 7 Currency Volatility Source: PMI forecasts and PMI Financials

● Business fundamentals are robust ● Specific market challenges ● Increased investments behind Reduced-Risk Products and our conventional tobacco products ● Reported diluted EPS guidance for 2014 is $5.02 to $5.12 at prevailing exchange rates, compared to $5.26 in 2013 ● Excluding currency, our guidance represents a growth rate of approximately 6% to 8%, compared to our adjusted diluted EPS of $5.40 in 2013 8 2014 Business Outlook and EPS Guidance Source: PMI forecasts and PMI Financials

Japan: Pricing and Market Share Challenge 9 Source: Tobacco Institute of Japan and PMI forecasts 12.4 12.1 12.4 11.8 27.7 26.7 27.7 25.9 2012 2013 2012 2013 PMI Market Share (%) FY Total PMI Marlboro Other Q4 ● Consumption tax increase from 5% to 8% in April. Related retail price pass-on of approximately JPY 14/pack ● Cigarette price changes in Japan subject to approval of Minister of Finance ● We have applied for approval to increase Marlboro, Lark and Philip Morris by JPY 20/pack and other brands by up to JPY 10/pack ● Industry volume decline of around 3.0% to 3.5% expected in 2014

13.3 12.5 13.1 H2 2012 H1 H2 ● We estimate that Mighty Corporation declares only about half its production for tax purposes ● Fiscal tax stamps planned in Q2, 2014 ● Retail price of Mighty brand increased to PHP 1.50/stick, but Marvels brand still sold at price lower than combination of excise tax and VAT ● Down-trading has impacted PMI market share and profitability Note: VAT stands for Value Added Tax. Adult refers to Legal Age (minimum 18) – 64 year old smokers. SoM stands for Share of Market Source: PMI estimates, Nielsen and PMI Market Research Philippines: Competitor Excise Tax Under- Reporting Remains Central Issue 49.6 50.3 50.1 H2 2012 H1 H2 Adult Smoking Incidence (%) 2013 10 2013 Adult Daily Consumption (Avg. cigarettes per day) 17.1 41.2 Q4 2012 Q4 2013 Super-Low SoM (%) 87.2 72.3 Q4 2012 Q4 2013 PMI Market Share (%)

4.8 5.2 4.7 5.1 13.8 14.4 13.8 14.5 3.3 4.4 3.8 4.8 12.3 11.1 12.7 10.6 35.6 36.1 36.2 35.7 2012 2013 2012 2013 5.2% 3.4% (6.6)% Premium Mid Source: PMI estimates and PMI forecasts ● Cigarette industry volume increased by 1.9% in 2013 to an estimated 308 billion units ● Economic slowdown and higher fuel and food prices ● Around 1% cigarette industry volume growth forecast for 2014 ● PMI benefiting from continued growth of machine-made lighter-tasting segment ● 10% regional tax introduced in January 2014 should be manageable Indonesia: Moderate Industry Volume Growth Industry Volume Variance by Price Segment (2013 vs. PY) Other Dji Sam Soe + Sampoerna Kretek Sampoerna A Marlboro U Mild Q4 FY Total PMI 11 PMI Market Share (%) Low

Note: Fine cut includes Make Your Own (MYO), MYO volume tobacco and Roll Your Own Source: PMI estimates and PMI forecasts EU Region: Reduction in Cigarette Industry Volume Decline Q1 Q2 Q4 Total Cigarette Industry Volume Decline (2013 vs. PY) Q3 (5.8)% (5.5)% (8.0)% (10.6)% 12 ● Illicit trade appears to have stabilized ● Slower expansion of fine cut category and e-cigarettes ● Forecast 6% to 7% decline in cigarette industry volume in 2014 ● Excise tax increases reasonable and structures improving. Predominantly ad-valorem structure in Italy is a concern

38.0 38.5 18.6 19.0 6.6 6.8 3.8 4.0 1.7 2.0 Source: PMI estimates EU Region: Strong Share Growth Momentum EU Region Cigarette Market Shares (%) +0.5pp 13 +0.4pp 2012 2013 Marlboro PMI 2012 2013 2012 2013 2012 2013 2012 2013 +0.2pp L&M +0.2pp Chesterfield +0.3pp Philip Morris

Source: PMI estimates 39.6 35.8 53.0 36.4 30.5 6.7 40.2 36.2 53.1 36.6 31.2 7.3 0 20 France Germany Italy Poland Spain UK EU Region: Strong Share Growth Momentum 2012 2013 PMI Cigarette Market Shares (%) +0.1pp +0.2pp +0.7pp +0.6pp +0.4pp +0.6pp 55 25 10 14

Russia: Profitability Growth Despite Volume Decline 15 ● Profitability expanded in 2013 despite an estimated 7.6% cigarette industry volume decline ● High single-digit profit growth expected again in 2014 even though we forecast industry volume decline of 9% to 11% Note: MRSP stands for Maximum Retail Selling Price Source: PMI Financials, PMI estimates, PMI forecasts and Nielsen 26.4 26.1 2012 2013 PMI Market Share (%) MRSP Evolution (RUB/pack) Jan 2012 Jun 2012 Jan 2013 Jun 2013 Jan 2014 Parliament 72 75 82 86 95 Marlboro 60 63 70 74 83 Chesterfield 42 45 52 55 64 L&M 34 37 43 47 56 Bond Street 31 34 40 44 53 Tax pass-on 2.80 0.90 5.20 ─ 8.00

Source: PMI estimates, PMI forecasts and Nielsen Turkey: PMI Gaining Share in Premium and Mid 16 ● Trade loading at the end of 2012 and an increase in illicit trade resulted in an estimated 7.6% decline in cigarette industry volume in 2013 ● Underlying cigarette industry volume expected to stabilize in 2014 ● PMI successfully line-extended Chesterfield into the super-low price segment ● Specific excise tax increase in January 2014 resulting in pass-on of around TRY 0.28/pack. PMI has increased prices, on average, by TRY 0.50/pack 20.8 19.7 6.7 6.9 18.2 18.9 45.7 45.5 2012 2013 PMI Market Share (%) Premium Mid Low & Super-low

Source: PMI estimates 75.6% 15.7% 37.2% 51.0% 73.5% Argentina Brazil Canada Colombia Mexico Latin America & Canada Region: Strong Results PMI Market Shares (2013) +0.7pp +0.9pp +0.3pp +0.5pp ─ pp 17

Market Share Momentum: Top 30 OCI Markets 18 PMI Market Share(a) 34.4% 34.9% 2012 2013 (a) Excluding the Philippines and duty free Source: PMI Financials and PMI estimates

Market Share Momentum: Marlboro Market Shares 2011 2012 2013 EU 18.4% 18.6% 19.0% EEMA 6.8% 7.0% 7.1% Asia(a) 5.1% 5.2% 5.3% LA&C 14.0% 14.6% 15.0% (a) Excluding China and the Philippines Source: PMI estimates 19

International Cigarette Industry Volume: Slight Moderation in Decline Forecast for 2014 Cigarette Industry Volume (units trillion) 2012 2013 2014F International Markets excl. China 3.2 (3.1) 3.0 Variance (3.0)% (2.0)% ─ (3.0)% Note: All data exclude the USA Source: PMI estimates and PMI forecasts 20

Pricing: Key Driver of Increased Profitability 21 ● 2013 pricing variance reflects the timing of tax-driven price increases and unusually large gains due to inventory movements, most notably in the Philippines ● In Q1, 2014, we expect these gains to be lower and consequently this quarter’s EPS growth rate, excluding currency, is expected to be below our average for the year ● As of today, we have implemented or announced almost 60% of the pricing that is built into our 2014 EPS guidance 1,704 2,066 2008-2012 Average 2013 Pricing Variance ($ million) Source: PMI Financials and PMI forecasts

Margin Improvements Driven by Pricing and Productivity Gains 22 Adjusted OCI Margin (a) Excluding currency Source: PMI Financials 45.4% 46.0% 2012 2013 (a)

Source: PMI Financials and PMI forecasts Business Development: Accretive to Earnings in 2014 23 ● Remaining 20% shareholding in Mexico ● 49% participation in Arab Investors-TA ● 20% shareholding in our Russian distributor, Megapolis ● Business restructuring in Egypt ● Expected net EPS impact of approximately 10 cents in 2014 Megapolis Mexico

Free Cash Flow: Double-Digit Increase in 2013 excluding Currency 24 8,935 420 8,365 9,355 2012 2013 Note: Free cash flow is defined as net cash provided by operating activities less capital expenditures Source: PMI Financials ($ million) +11.8% Currency

Rewarding Our Shareholders: Very Significant Dividend Increases 25 +17.4% +7.4% +10.3% +20.3% +10.4% +10.6% $1.84 $3.76 2008 Aug Sept Sept Sept Sept Sept 2013 +104.3% 2008 2009 2010 2011 2012 2013 1.7% 1.9% 2.0% 2.7% 2.8% 3.0% 3.0% 3.1% 3.1% 3.4% 3.4% 3.4% 3.9% 4.7% 4.8% 4.9% 4.9% 5.2% Mondelēz Bayer Heineken Diageo PepsiCo Coca-Cola Johnson & Johnson Nestlé Roche Novartis Pfizer McDonald's Unilever BAT PMI Vodafone GlaxoSmithKline Imperial Tobacco Dividend Yield: Compensation Survey Group (January 31, 2014) Note: Dividends for 2008 and 2013 are annualized rates. 2008 annualized rate is based on a quarterly dividend of $0.46 per common share, declared June 18, 2008. The annualized rate for 2013 is based on a quarterly dividend of $0.94 per common share, declared September 11, 2013. Dividend yield represents the annualized dividend on January 31, 2014, over the closing share price on that date. The share price for PMI was $78.14 as of January 31, 2014. The annualized dividend was $3.76 Source: PMI Financials

● $6.0 billion spent in 2013 to repurchase 67.2 million shares ● Over $2 billion spent on business development opportunities in 2013 ● Significant unfavorable impact of currency projected on reported results in 2014 ● Approaching the high end of the ratios supporting our credit rating ● $4.0 billion share repurchase target in 2014 26 Rewarding Our Shareholders: Share Repurchases Source: PMI Financials and PMI forecasts

● Pilot plant and new manufacturing facility with capacity of up to 30 billion units to be completed by end 2015. Associated capital expenditures of up to €500 million ● Clinical trials to be completed during 2014 ● On-going perception and behavioral studies ● Packaging and labeling being prepared in anticipation of planned city pilot tests in second half of 2014 ● First national RRP launch in 2015 ● E-cigarette launch during second half of 2014 ● Increased expenditures of $100+ million in 2014 27 Investments to Accelerate Commercialization of Reduced-Risk Products ("RRPs") Source: PMI Financials

Source: PMI forecasts ● Increased investments behind conventional and Reduced- Risk Products ● Improving outlook for Philippines and EU Region ● Japan remains a significant challenge ● Robust fundamentals and good market share momentum ● Business development projects adding to our profitability ● Currency volatility ● Expectation that, as of 2015, we should be able to meet our annual currency-neutral net revenues and adjusted OCI targets ● Strong free cash flow to be used to reward our shareholders through generous dividends and share repurchase programs 28 Conclusion: 2014, an Important Development Year

Questions & Answers 2013 Fourth-Quarter and Full-Year Results

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Adjustments for the Impact of Currency and Acquisitions For the Quarters Ended December 31, ($ in millions) (Unaudited) 30 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 7,048$ 4,909$ 2,139$ 85$ 2,054$ -$ 2,054$ European Union 6,684$ 4,621$ 2,063$ 3.7% (0.4)% (0.4)% 5,349 3,092 2,257 (50) 2,307 - 2,307 EEMA 5,016 2,877 2,139 5.5% 7.9% 7.9% 5,211 2,735 2,476 (268) 2,744 - 2,744 Asia 5,403 2,598 2,805 (11.7)% (2.2)% (2.2)% 2,782 1,865 917 (66) 983 - 983 Latin America & Canada 2,639 1,757 882 4.0% 11.5% 11.5% 20,390$ 12,601$ 7,789$ (299)$ 8,088$ -$ 8,088$ PMI Total 19,742$ 11,853$ 7,889$ (1.3)% 2.5% 2.5% 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 1,011$ 39$ 972$ -$ 972$ European Union 955$ 5.9% 1.8% 1.8% 811 (59) 870 - 870 EEMA 921 (11.9)% (5.5)% (5.5)% 1,055 (155) 1,210 - 1,210 Asia 1,129 (6.6)% 7.2% 7.2% 358 (39) 397 - 397 Latin America & Canada 290 23.4% 36.9% 36.9% 3,235$ (214)$ 3,449$ -$ 3,449$ PMI Total 3,295$ (1.8)% 4.7% 4.7% 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 December 31, ($ in millions) (Unaudited) 31 (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 1,011$ (13)$ 1,024$ 39$ 985$ -$ 985$ European Union 955$ (5)$ 960$ 6.7% 2.6% 2.6% 811 (264) 1,075 (59) 1,134 - 1,134 EEMA 921 (5) 926 16.1% 22.5% 22.5% 1,055 (19) 1,074 (155) 1,229 - 1,229 Asia 1,129 (15) 1,144 (6.1)% 7.4% 7.4% 358 (5) 363 (39) 402 - 402 Latin America & Canada 290 (8) 298 21.8% 34.9% 34.9% 3,235$ (301)$ 3,536$ (214)$ 3,750$ -$ 3,750$ PMI Total 3,295$ (33)$ 3,328$ 6.3% 12.7% 12.7% % Points Change Adjusted Operating Companies Income excluding Currency Net Revenues excluding Excise Taxes & Currency(a) Adjusted Operating Companies Income Margin excluding Currency Adjusted Operating Companies Income excluding Currency & Acquisitions Net Revenues excluding Excise Taxes, Currency & Acquisitions(a) Adjusted Operating Companies Income Margin excluding Currency & Acquisitions Adjusted Operating Companies Income Net Revenues excluding Excise Taxes(a) Adjusted Operating Companies Income Margin Adjusted Operating Companies Income Margin excluding Currency Adjusted Operating Companies Income Margin excluding Currency & Acquisitions 985$ 2,054$ 48.0% 985$ 2,054$ 48.0% European Union 960$ 2,063$ 46.5% 1.5 1.5 1,134 2,307 49.2% 1,134 2,307 49.2% EEMA 926 2,139 43.3% 5.9 5.9 1,229 2,744 44.8% 1,229 2,744 44.8% Asia 1,144 2,805 40.8% 4.0 4.0 402 983 40.9% 402 983 40.9% Latin America & Canada 298 882 33.8% 7.1 7.1 3,750$ 8,088$ 46.4% 3,750$ 8,088$ 46.4% PMI Total 3,328$ 7,889$ 42.2% 4.2 4.2 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 December 31, (Unaudited) 32 2013 2012 % Change Reported Diluted EPS 1.24$ 1.25$ (0.8)% Adjustments: Asset impairment and exit costs 0.12 0.01 Tax item 0.01 (0.02) Adjus e iluted EPS 1.37$ 1.24$ 10.5% Less: Currency impact (0.11) Adjusted Diluted EPS, excluding Currency 1.48$ 1.24$ 19.4%

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 December 31, (Unaudited) 33 2013 2012 % Change Reported Diluted EPS 1.24$ 1.25$ (0.8)% Less: Currency impact (0.11) Reported Diluted EPS, excluding Currency 1.35$ 1.25$ 8.0%

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Adjustments for the Impact of Currency and Acquisitions For the Years Ended December 31, ($ in millions) (Unaudited) 34 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 28,303$ 19,707$ 8,596$ 205$ 8,391$ -$ 8,391$ European Union 27,338$ 18,812$ 8,526$ 0.8% (1.6)% (1.6)% 20,695 11,929 8,766 (98) 8,864 - 8,864 EEMA 19,272 10,940 8,332 5.2% 6.4% 6.4% 20,987 10,486 10,501 (726) 11,227 - 11,227 Asia 21,071 9,873 11,198 (6.2)% 0.3% 0.3% 10,044 6,690 3,354 (146) 3,500 - 3,500 Latin America & Canada 9,712 6,391 3,321 1.0% 5.4% 5.4% 80,029$ 48,812$ 31,217$ (765)$ 31,982$ -$ 31,982$ PMI Total 77,393$ 46,016$ 31,377$ (0.5)% 1.9% 1.9% 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 4,238$ 92$ 4,146$ -$ 4,146$ European Union 4,187$ 1.2% (1.0)% (1.0)% 3,779 (122) 3,901 - 3,901 EEMA 3,726 1.4% 4.7% 4.7% 4,622 (548) 5,170 - 5,170 Asia 5,197 (11.1)% (0.5)% (0.5)% 1,134 (64) 1,198 - 1,198 Latin America & Canada 1,043 8.7% 14.9% 14.9% 13,773$ (642)$ 14,415$ -$ 14,415$ PMI Total 14,153$ (2.7)% 1.9% 1.9% 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 Years Ended December 31, ($ in millions) (Unaudited) 35 (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 4,238$ (13)$ 4,251$ 92$ 4,159$ -$ 4,159$ European Union 4,187$ (5)$ 4,192$ 1.4% (0.8)% (0.8)% 3,779 (264) 4,043 (122) 4,165 - 4,165 EEMA 3,726 (5) 3,731 8.4% 11.6% 11.6% 4,622 (27) 4,649 (548) 5,197 - 5,197 Asia 5,197 (39) 5,236 (11.2)% (0.7)% (0.7)% 1,134 (5) 1,139 (64) 1,203 - 1,203 Latin America & Canada 1,043 (34) 1,077 5.8% 11.7% 11.7% 13,773$ (309)$ 14,082$ (642)$ 14,724$ -$ 14,724$ PMI Total 14,153$ (83)$ 14,236$ (1.1)% 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 4,159$ 8,391$ 49.6% 4,159$ 8,391$ 49.6% European Union 4,192$ 8,526$ 49.2% 0.4 0.4 4,165 8,864 47.0% 4,165 8,864 47.0% EEMA 3,731 8,332 44.8% 2.2 2.2 5,197 11,227 46.3% 5,197 11,227 46.3% Asia 5,236 11,198 46.8% (0.5) (0.5) 1,203 3,500 34.4% 1,203 3,500 34.4% Latin America & Canada 1,077 3,321 32.4% 2.0 2.0 14,724$ 31,982$ 46.0% 14,724$ 31,982$ 46.0% PMI Total 14,236$ 31,377$ 45.4% 0.6 0.6 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 Years Ended December 31, (Unaudited) 36 2013 2012 % Change Reported Diluted EPS 5.26$ 5.17$ 1.7% Adjustments: Asset impairment and exit costs 0.12 0.03 Tax item 0.02 0.02 Adjust iluted EPS 5.40$ 5.22$ 3.4% Less: Currency impact (0.34) Adjusted Diluted EPS, excluding Currency 5.74$ 5.22$ 10.0%

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures Reconciliation of Reported Diluted EPS to Reported Diluted EPS, excluding Currency For the Years Ended December 31, (Unaudited) 37 2013 2012 % Change Reported Diluted EPS 5.26$ 5.17$ 1.7% Less: Currency impact (0.34) Reported Diluted EPS, excluding Currency 5.60$ 5.17$ 8.3%

(a) Operating Cash Flow PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries Reconciliation of Non-GAAP Measures 38 Reconciliation of Operating Cash Flow to Free Cash Flow and Free Cash Flow, excluding Currency For the Quarters and Years Ended December 31, ($ in millions) (Unaudited) For the Quarters Ended For the Years Ended December 31, December 31, 2013 2012 % Change 2013 2012 % Change Net cash provided by operating activities(a) 2,320$ 1,650$ 40.6% 10,135$ 9,421$ 7.6% Less: Capital expenditures 379 337 1,200 1,056 Free C h Flow 1,941$ 1,313$ 47.8% 8,935$ 8,365$ 6.8% Less: Currency impact (285) (420) Free Cash Flow, excluding Currency 2,226$ 1,313$ 69.5% 9,355$ 8,365$ 11.8%