pHILIP MORRIS REVIEW

Annual Meeting of Stockholders New York May 9, 2012
Louis C. Camilleri Chairman and Chief Executive Officer Philip Morris International
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 PMIs 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 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. PMIs future profitability may also be adversely affected should it be unsuccessful in its attempts to produce products with the potential to reduce the risk of smoking-related diseases; if it is unable to successfully introduce new products, promote brand equity, enter new markets or improve its margins through increased prices and productivity gains; if it is unable to expand its brand portfolio internally or through acquisitions and the development of strategic business relationships; or if it is unable to attract and retain the best global talent PMI is further subject to other risks detailed from time to time in its publicly filed documents, including the Form 10-Q for the quarter ended March 31, 2012. 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 A glossary of terms and reconciliations of non-GAAP measures included in this presentation to the most comparable GAAP measures are provided at the end of this web cast, and are posted on our web site at www.pmi.com
Annual Meeting of Stockholders May 9, 2012
Outstanding Results in 2011
2011 Reported Cigarette Volume (units billion) Net Revenues ($ billion) OCI ($ billion) Diluted EPS ($ / share) 915.3 $31.1 $13.6 $4.85
2011 vs. 2010 Growth Rate (%) 1.7% 14.3% 18.7% 23.7%
Source: PMI Financials
Outstanding Results in 2011

Growth 2011 vs. 2010
(%) 22 21.2
14.0
9.2
0.5 0
Organic Cigarette Volume Net Revenues
(a)
Adjusted OCI
(a)
Adjusted Diluted EPS(b)
(a) Excluding currency and acquisitions (b) Excluding currency Source: PMI Financials
Outstanding Results in 2011 and Q1, 2012

Growth 2011 vs. 2010
(%) 22 21.2 (%) 22 19.8
Growth Q1, 2012 vs. Q1, 2011
14.0
10.9
14.2
9.2
5.3
0.5 0
Organic Cigarette Volume Net Revenues
(a)
0
Adjusted OCI
(a)
Organic Cigarette Volume
Net Revenues
(a)
Adjusted OCI
(a)
(a) Excluding currency and acquisitions (b) Excluding currency Source: PMI Financials
Key Growth Drivers

Our success in the Asia Region Superior brand portfolio and geographic diversity Favorable pricing and reasonable excise tax environment Cost controls and productivity gains
Asia Region: Key Driver of Volume Growth

Growing adult population Increasing consumer Indonesia purchasing power Japan Special situation in Japan Korea Strong performance of Marlboro Organic Cigarette
Volume Growth (%) 12.4 7.5
PMI Market Shares

FY 2010 29.1% 24.4 16.9 2011 31.2% 30.7 19.8 2011 29.9% 25.6 17.8 Q1 2012 33.4% 28.0 20.4
2011
Q1 2012
8
Source: PMI Financials, PMI estimates, Tobacco Institute of Japan and Hankook Research
EEMA Region: Consumer Uptrading

Economies improving Adult consumer uptrading Parliament key driver of PMI share growth
PMI Market Shares
FY 2010 Russia Turkey Ukraine 25.6% 42.1 34.9 2011 25.8% 44.8 32.2 2011 25.5% 43.9 32.4 Q1 2012 26.2% 44.7 32.2
Parliament Volume Growth (%)
31.0
2011 Q1, 2012
21.5 15.7 10.5 4.2 Russia

Source: PMI Financials and Nielsen
15.5
Turkey
Ukraine
9
Q1, 2012: Solid Performance Across All Regions

% Change Q1, 2012 vs. Q1, 2011
($ billion) Net Revenues Asia Region EEMA Region Q1 2012 Results 2.8 1.8 Excluding Currency & Currency Acquisitions 16.4% 13.1% 16.3% 12.6%
Actual
19.5% 8.8%
EU Region
LA&C Region Adjusted OCI Asia Region
2.1
0.8
2.6%
0.4%
5.3%
5.4%
5.3%
5.4%
1.4
28.5% 11.9% 1.3%
23.7%
23.7%
EEMA Region
EU Region LA&C Region
0.8
1.0 0.2
18.0%
3.7% 4.0%
18.0%
3.7% 4.0%
(2.8)%
Note: Total Q1, 2012 results for net revenues do not add up to $7.4 billion due to rounding. Total Q1, 2012 results for adjusted OCI do not add up to $3.5 billion due to rounding Source: PMI Financials 10
EU Region: Improved Performance

Underlying industry volume trends improving except where unemployment is very high Structural excise tax improvements Pricing remains key driver of financial performance L&M and Chesterfield growing in low-price segment
Source: PMI estimates
PMI Market Shares

FY 2010 France Germany Italy Spain 40.4% 35.5 53.9 31.7 2011 40.5% 35.9 53.1 30.8 2011 40.4% 35.7 53.5 30.4 Q1 2012 39.6% 35.9 52.6 30.2
EU Region Market Shares (%) L&M 6.5 6.2 2.9 3.3 Chesterfield
Q1 2011
Q1 2012
Q1 2011
Q1 2012
11
Latin America & Canada Region: Marlboro Driving Solid Results Mexican market stabilized this year as no excise tax increase Marlboro key driver of solid volume performance and profit growth
PMI Market Shares
FY 2010 Argentina Canada Mexico 73.6% 33.3 70.1 2011 74.4% 34.1 72.3 2011 74.4% 33.9 70.5 Q1 2012 75.1% 33.9 74.3
2010 2011 Q1, 2012
54.3
(%) 55 20
24.8
Marlboro Market Shares

49.1
23.3
20 10
6.8 6.8 3.8 5.8
0
Argentina
Source: PMI estimates
Brazil
Colombia
Mexico
12
All Top Ten PMI Brands Grew Volume in 2011

(units billion) Volume Growth (2011 vs. 2010) 6
0
Marlboro L&M Fortune Bond (a) Street Parl. P.M. Chest. Sam. A Lark Dji Sam Soe
Note: Parl. is Parliament, P.M. is Philip Morris, Chest. is Chesterfield, and Sam. A is Sampoerna A. Pack designs are for illustrative purposes only (a) March through December Source: PMI Financials
13
All Top Ten PMI Brands Grew Volume in Q1, 2012

(units billion) Volume Growth (Q1, 2012 vs. Q1, 2011) 4
0
Marlboro L&M Fortune Bond Street Parl. P.M. Chest. Sam. A Lark Dji Sam Soe
Note: Parl. is Parliament, P.M. is Philip Morris, Chest. is Chesterfield and Sam. A is Sampoerna A. Pack designs are for illustrative purposes only Source: PMI Financials
14
Balanced Geographic Footprint

Latin America & Canada Latin America & Canada
Asia EEMA
Asia
EEMA
EU 2011 Cigarette Volume: 915.3 billion units
EU 2011 Adjusted OCI: $13.7 billion
15
Fourth Consecutive Year of Global Market Share Growth

PMI Market Share(a)
(%) 30
28.1 27.5 25.5 25.8
25.0
20 2007 2008 2009 2010 2011
(a) Worldwide, excluding China and the USA Source: PMI estimates
16
Strong Share Momentum Continued in Q1, 2012

Top 30 PMI OCI Markets
(%) 40
37.3
36.6
35.5
30 2010 2011 Q1, 2012
Note: Historical data adjusted for pro forma inclusion of business combination with Fortune Tobacco Corporation in the Philippines Source: PMI Financials and PMI estimates
17
Pricing Environment Remains Favorable

Pricing Variance
($ million) 2,000 2,000
1,984 1,662 1,894
1,223
0 0 2008 2009 2010 2011
18
Favorable Pricing and Volume/Mix Variances in Q1, 2012

($ million) 400 400
369
224
0 00
Price
Volume/Mix
Note: Variances at OCI level Source: PMI Financials
19
Rational Excise Tax Environment

Most governments recognize that, over the longer-term, the optimization of their revenues is fostered by:
- Reasonable, regular excise tax increases - Predominantly specific excise tax structures - Use of minimum excise taxes and other mechanisms to limit consumption by discouraging lower prices - Multi-year legislation or plans
No disruptively large excise tax increases so far in 2012
20
PMI Operates Successfully in Strictly Regulated Markets Many of our markets have introduced:
- Extensive public smoking restrictions - Advertising bans (e.g., billboards, print media, tv and radio advertising) - Large graphic health warnings - Bans on the use of "descriptors"
We generally support these regulations
21
PMI Opposes Extreme Regulatory Measures

Some governments have sought to enact measures that are extreme in nature and are not based on rational scientific principles, such as
Plain packaging Health warnings covering most of the pack Display bans Bans on the use of all ingredients
There is no sound evidence that these types of proposals would reduce consumption among adults or youth or would meaningfully benefit public health
22
Oversized Health Warnings are Unreasonable

PMI Opposes
Health Warnings 80%
PMI Does Not Oppose

Health Warnings 50%
Egypt
Hong Kong
Uruguay
Panama
Singapore
23
PMI Strongly Opposes Uruguays Single Presentation Ordinance

PMIs Marlboro Mailhos Coronado Brand
Mar. 2009
Dec. 2009
24
Australia: We Oppose Plain Packaging

Law mandates so-called plain packaging from December 1, 2012 Constitutional High Court challenge heard last month. Decision expected during the next six months PMI pursuing arbitration claim under the Hong Kong Australia Bilateral Investment Treaty WTO country actions
25
Costs and Productivity

Tobacco leaf markets now balanced on a global basis Leaf and direct material prices expected to increase broadly in line with inflation We are fully on track to achieve our 2012 pre-tax productivity target of $300 million
26
Growing Free Cash Flow at Double-Digit Rate

CAGR 2008-2011: 12.2%
($ billion) 10.0 $1 billion working capital reduction program 8.7 9.6
7.2
6.8
5.0 2008 2009 2010 2011
27
Very Strong Capital Structure

Growing cash flow underpins our strong balance sheet Long-term credit ratings: A2 / A / A Short-term credit ratings: P-1 / A-1 / F1 More than $16 billion in well-laddered bonds Attractive weighted-average all-in financing costs of 4.4% in 2011
Note: Ratings are by Moodys, Standard & Poors and Fitch Source: PMI Financials
28
Net Debt to EBITDA

Peer Group
Kraft Imperial Tobacco Diageo Heineken PepsiCo McDonald's Unilever Vodafone BAT Bayer Coca-Cola PMI Roche Nestl GlaxoSmithKline Novartis Pfizer Johnson & Johnson NA 0.4x 1.3x 1.3x 1.2x 1.1x 1.1x 0.9x 0.9x 0.9x 0.8x Lorillard Japan Tobacco 0.6x PMI 1.1x 1.7x 1.7x 1.4x BAT 1.3x 2.4x 2.5x Altria 1.5x 2.9x 2.8x Imperial Tobacco 2.8x
Tobacco Sector
Reynolds American
0.6x
0.5x
Note: PMIs Net Debt and EBITDA were $15,995 million and $14,325 million for the 12 months ending December 31, 2011, respectively. Peer comparisons exclude certain one-time items and restructuring costs. McDonalds figure shown pro forma for $7 billion in operating lease liabilities. Figures are for the 12 month period ending December 31, 2011 or nearest comparable period Source: Company filings and FactSet, compiled by Centerview
29
EBITDA Interest Coverage

EBITDA / Net Interest
Johnson & Johnson Nestl Novartis Pfizer Bayer Unilever PMI PepsiCo GlaxoSmithKline BAT Diageo Roche Vodafone McDonald's Heineken Imperial Tobacco Kraft Coca-Cola 46.9x 36.4x 27.4x 24.6x 22.9x 20.5x 17.9x 16.4x 15.5x 13.1x 12.6x 12.1x 11.7x 10.0x 8.8x 5.7x 5.3x NA
Note: McDonalds figure shown pro forma for $7 billion in operating lease liabilities. Imperial Tobacco net interest excludes gains on derivative financial instruments and underlying borrowings. Figures are for the 12 month period ending December 31, 2011 or nearest comparable period Source: Company filings and FactSet, compiled by Centerview 30
Debt to Enterprise Value

Debt / Enterprise Value
Vodafone Imperial Tobacco Heineken Kraft PepsiCo Pfizer Bayer Diageo GlaxoSmithKline McDonald's Roche Unilever Coca-Cola Novartis BAT Johnson & Johnson Nestl PMI 31.4% 29.2% 28.8% 28.2% 21.1% 21.0% 20.5% 19.7% 18.4% 16.8% 16.7% 15.8% 15.2% 14.8% 14.3% 11.9% 11.6% 10.7%
Note: Enterprise value is defined as stock price as of May 1, 2012 multiplied by December 31, 2011 outstanding shares plus net debt plus minority interests at December 31, 2011. McDonalds figure shown pro forma for $7 billion in operating lease liabilities. Debt figures are for December 31, 2011 or nearest comparable date Source: Company filings and FactSet, compiled by Centerview 31
Focused Use of Cash Flow to Enhance Shareholder Returns

2008-2011
Free Cash Flow $32.4 billion
Net Debt Issuance and Other $9.9 billion
Cash Available $42.3 billion
Dividends(a) $18.6 billion 44%
Share Repurchases $21.4 billion 51%
Acquisitions $2.3 billion 5%

32
(a) Including dividend of $3.0 billion paid in April 2008 to Altria Group, Inc. Source: PMI Financials
Substantial Share Repurchase Programs

21.4 414.1
80.5
19.6
3.8
2011
5.4 97.1
4.6
2010
5.0
2009
5.5
129.7
6.1
2008
5.4
106.8
5.1
Cumulative Amount ($ billion)
Shares (million)
Shares Outstanding at Spin (%)

33
Note: The outstanding PMI shares at the time of the spin were 2,109 million. Totals may not add due to rounding Source: PMI Financials
Substantial Share Repurchase Programs

22.9 1.5
5.4 97.1
Q1, 2012
432.1 18.1
80.5
20.5 0.9
3.8
2011
4.6
2010
5.0
2009
5.5
129.7
6.1
2008
5.4
106.8
5.1
Cumulative Amount ($ billion)
Shares (million)
Shares Outstanding at Spin (%)

34
Note: The outstanding PMI shares at the time of the spin were 2,109 million. Totals may not add due to rounding Source: PMI Financials
Very Significant Dividend Increases

+67.4%
$3.08
+20.3% +10.3%
+7.4% $1.84 +17.4%
2008
Aug 2008
Sept 2009
Sept 2010
Sept 2011
2011
Note: Dividends for 2008 and 2011 are annualized rates. 2008 annualized rate is based on a quarterly dividend of $0.46 per common share, declared June 18, 2008. The annualized rate for 2011 is based on a quarterly dividend of $0.77 per common share, declared September 14, 2011 Source: PMI Financials
35
Superior Dividend Growth (Since 2008)

Peer Group
McDonald's PMI BAT Imperial Tobacco Nestl Roche Coca-Cola Heineken Johnson & Johnson PepsiCo Unilever GlaxoSmithKline Diageo Vodafone Bayer 67.4% 86.7% Lorillard 68.5%
Tobacco Sector
51.1% 43.7%
39.3% 36.0% 34.2% 33.9% 32.6% 26.5% 26.2% 22.8% 20.8% 19.9% 17.9% 12.5% 7.4% Pfizer Reynolds American 38.8% Imperial Tobacco 43.7% Japan Tobacco 66.7% PMI 67.4%
BAT
51.1%
Altria
41.4%
Novartis Kraft
(31.3)%
Note: PMI reflects absolute growth in annualized announced dividends from time of first PMI dividend of $0.46 in June 2008 until present. Peer companies reflect absolute growth from FY 2008 dividends or Q2, 2008 annualized dividend through current last twelve months dividends or current last quarter annualized as appropriate Source: FactSet, compiled by Centerview 36
PMI Outperformed All 30 Stocks in the Dow Jones Industrial Average in 2011
Share Price Performance
PMI McDonald's IBM Pfizer Home Depot Kraft Foods Chevron Exxon Mobil Intel Boeing Verizon Wal-Mart Stores American Express Coca-Cola Travelers Johnson & Johnson Merck Procter & Gamble AT&T (0.0)% (2.1)% (3.3)% (5.3)% (7.0)% (7.2)% (8.2)% (10.6)% (21.6)% (38.8)% (43.8)% (58.3)% 34.1% 30.7% 25.3% 23.6% 19.9% 18.6% 16.6% 15.9% 15.3% 12.4% 12.1% 10.8% 9.9% 6.4% 6.2% 6.0% 4.6% 3.7% 2.9% Walt Disney GE Caterpillar 3M Microsoft
Total Shareholder Return

PMI McDonald's Pfizer IBM Home Depot Kraft Foods Chevron Intel Exxon Mobil Verizon Boeing Wal-Mart Stores American Express Johnson & Johnson Merck Coca-Cola Travelers AT&T Procter & Gamble Walt Disney GE (1.5)% (2.8)% (4.5)% (5.0)% (5.2)% (9.6)% (20.0)% (37.9)% (43.3)% (58.1)% 39.8% 34.7% 28.8% 27.4% 23.4% 22.6% 20.3% 19.3% 18.7% 18.2% 15.2% 13.9% 11.6% 9.9% 9.5% 9.4% 9.3% 9.0% 7.0% 1.7% 1.3% Caterpillar 3M Microsoft
United Technologies DuPont Cisco Systems

JPMorgan Chase Hewlett-Packard Alcoa Bank of America
United Technologies DuPont Cisco Systems

JPMorgan Chase Hewlett-Packard Alcoa Bank of America
Source: FactSet, compiled by Centerview
37
Superior Shareholder Returns

March 28, 2008 April 30, 2012
PMI
111.6%
Tobacco Peer Group
56.8%
Company Peer Group
29.6%
S&P 500
16.8%
(4.2)%
FTSE 100
Note: Peer groups represent the market weighted average return of the group. PMI pro forma for additional $0.46 per share dividend paid in April 2008 impacts the period March 28, 2008 April 30, 2012. Exchange rates are as of March 28, 2008 and April 30, 2012. A list of the Tobacco and Company Peer Groups is available in the reconciliation section Source: FactSet, compiled by Centerview
38
Valuation: Further Room for Improvement

2012 P/E
Coca-Cola McDonald's PMI Nestl Diageo PepsiCo Unilever Kraft Procter & Gamble Lorillard BAT Altria Heineken Reynolds American Japan Tobacco Johnson & Johnson Imperial Tobacco Roche GlaxoSmithKline Bayer Vodafone Pfizer Novartis 18.8x 17.0x 17.0x 16.8x 16.3x 16.3x 16.0x 15.8x 15.4x 15.1x 15.0x 14.7x 14.6x 13.7x 12.9x 12.7x 12.3x 12.2x 11.6x 10.9x 10.5x 10.0x 9.2x
Average: 14.0x
Note: Average excludes PMI Source: FactSet as of May 1, 2012. Compiled by Centerview
39

2012 P/E
Market Cap. to Free Cash Flow(a) Ratio

Nestl Diageo Coca-Cola Kraft McDonald's Unilever Reynolds American Altria PepsiCo Procter & Gamble PMI BAT Johnson & Johnson Lorillard GlaxoSmithKline Roche Bayer Vodafone Imperial Tobacco Heineken Novartis Japan Tobacco Pfizer 35.4x 27.1x 26.5x 25.6x 22.5x 21.8x 18.9x 18.8x 18.6x 18.3x 16.1x 15.6x 15.6x 15.5x 13.4x 13.0x 12.8x 12.8x 11.7x 11.2x 10.0x 9.9x 9.3x
Average: 14.0x
Average: 17.4x
(a) Free cash flow figures are for the 12 month period ending December 31, 2011 or nearest comparable period Note: Averages exclude PMI Source: FactSet as of May 1, 2012. Compiled by Centerview
40

2012 P/E
Market Cap. to Free Cash Flow(a) Ratio

Nestl Diageo Coca-Cola Kraft McDonald's Unilever Reynolds American Altria PepsiCo Procter & Gamble PMI BAT Johnson & Johnson Lorillard GlaxoSmithKline Roche Bayer Vodafone Imperial Tobacco Heineken Novartis Japan Tobacco Pfizer 35.4x 27.1x 26.5x 25.6x 22.5x 21.8x 18.9x 18.8x 18.6x 18.3x 16.1x 15.6x 15.6x 15.5x 13.4x 13.0x 12.8x 12.8x 11.7x 11.2x 10.0x 9.9x 9.3x
PEG(b) (LT EPS Growth Rate)

Vodafone Pfizer PepsiCo Novartis Nestl Coca-Cola Johnson & Johnson Procter & Gamble Altria Reynolds American Unilever Roche Diageo McDonald's Heineken Kraft PMI GlaxoSmithKline BAT Imperial Tobacco Lorillard Bayer Japan Tobacco 4.2x 3.6x 3.3x 3.0x 2.6x 2.3x 2.2x 2.1x 2.0x 2.0x 1.9x 1.8x 1.8x 1.7x 1.7x 1.7x 1.6x 1.6x 1.5x 1.4x 1.3x 1.2x 0.8x
Average: 14.0x
Average: 17.4x
Average: 2.1x
(a) Free cash flow figures are for the 12 month period ending December 31, 2011 or nearest comparable period (b) Based on I/B/E/S consensus for peers and PMI. PEG ratio defined as 2012 price/earnings ratio, divided by long-term EPS growth rate, and then divided by 100 Note: Averages exclude PMI Source: FactSet and Institutional Brokers Estimate System (I/B/E/S) as of May 1, 2012. Compiled by Centerview 41
Annual Meeting of Stockholders May 9, 2012 Question and Comment Session
Harold Brown
44
Mathis Cabiallavetta
45
Louis C. Camilleri
46
J. Dudley Fishburn
47
Jennifer Li
48
Graham Mackay
49
Sergio Marchionne
50
Kalpana Morparia
51
Lucio A. Noto
52
Robert B. Polet
53
Carlos Slim Hel
54
Stephen M. Wolf
55
PMIs Charitable Giving Programs

Five areas of giving on which we focus:
Disaster relief Domestic violence Education Hunger and extreme poverty Rural living conditions
Critical issues affecting many of the 180 countries in which we operate
Source: PMI Contributions
57
Disaster Relief
Following the catastrophic events in Japan in March 2011, PMI donated a substantial amount to support:
Immediate relief activities A number of longer-term recovery programs
Many of our own staff became volunteers and donors
58
Domestic Violence
PMI was one of the first corporations to become involved in the fight against domestic violence In Germany, we have been supporting the Berlin Initiative against Violence against Women since 2001
59
Education
Crucial factor in eradicating poverty and inequality Through our charitable contributions, we strive:
- To ensure access to schooling - To improve the quality of education
60
Education: Improving Teachers' Skills in Russia
PMI has been funding training courses for secondary school teachers at the Russian Federal Academy in Moscow PMI grants helped 880 teachers and school principals to attend courses
61
Hunger and Extreme Poverty
We also support programs that provide direct relief to the poor and hungry all over the world
62
Hunger and Extreme Poverty
We also support programs that provide direct relief to the poor and hungry all over the world
In Indonesia, we have joined forces with a local NGO to train farmers in the System of Rice Intensification
63
Rural Living Conditions

Finally, we support programs to:
Protect and enhance natural resources Reforest the land Implement conservation agriculture Provide clean water Ensure food security Improve the livelihoods of people living in rural communities
64
Rural Living Conditions: Malawi, Tanzania and Mozambique In Malawi, small maize and tobacco farmers are caught in a vicious cycle of increasing poverty Funding over the last decade has assisted:
- More than 6,700 villages - 153,000 households - Over 765,000 people across Malawi, Tanzania and Mozambique
65
PMIs Charitable Contributions in 2011

In 2011, PMI supported over 270 charitable projects across 58 countries Over 3.5 million people were impacted globally by our charitable giving programs
66
Senior Management Changes
Hermann Waldemer
67
Senior Management Changes
Jacek Olczak
68
Glossary and Reconciliation of Non-GAAP Measures
Glossary
PMI stands for Philip Morris International Inc. and its subsidiaries References to PMI volumes refer to PMI cigarette shipment data, unless otherwise stated Industry volume and market shares are the latest data available from a number of internal and external sources Organic volume refers to volume excluding acquisitions Acquisitions, for the purposes of this presentation, also include our business combination with Fortune Tobacco Corporation in the Philippines Net revenues exclude excise taxes OCI stands for Operating Companies Income, which is defined as operating income before general corporate expenses and the amortization of intangibles. OCI growth rates are on an adjusted basis which excludes asset impairment, exit and other costs Free cash flow equals net cash provided by operating activities less capital expenditures
71
Glossary
EEMA refers to the Eastern Europe, Middle East & Africa Region EU refers to the European Union Region LA&C refers to the Latin America & Canada Region NGO refers to non-governmental organizations
72
PMI Peer Groups

Company Peer Group Tobacco Peer Group
Bayer BAT Coca-Cola Diageo GlaxoSmithKline Heineken Imperial Tobacco Johnson & Johnson Kraft McDonalds Nestl Novartis PepsiCo Pfizer Roche Unilever Vodafone
Altria BAT Imperial Tobacco Japan Tobacco Lorillard Reynolds American
73
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)
2011 Reported Net Revenues excluding Excise Taxes & Currency $ 8,772 7,832 10,015 3,229 29,848 Reported Net Revenues excluding Excise Taxes, Currency & Acquisitions $
(a)
2010
% Change in Reported Net Revenues excluding Excise Taxes
Reported Net Revenues $ 29,768 17,452 19,590 9,536 76,346
Less Excise Taxes $ 20,556 9,571 8,885 6,237 $ 45,249
Reported Net Revenues excluding Excise Taxes $ 9,212 7,881 10,705 3,299 31,097
Less Currency $ 440 49 690 70 1,249
Less Acquisitions $ 25 112 137
Reported Net Revenues European Union EEMA Asia Latin America & Canada PMI Total $ 28,050 15,928 15,235 8,500 67,713
Reported Net Revenues excluding Excise Taxes $ 8,811 7,409 7,935 3,053 27,208
Reported 4.6% 6.4% 34.9% 8.1% 14.3%
Reported excluding Currency (0.4)% 5.7% 26.2% 5.8% 9.7%
Reported excluding Currency & Acquisitions (0.4)% 5.4% 24.8% 5.8% 9.2%
8,772 7,807 9,903 3,229 29,711
2011 Reported Operating Companies Income excluding Currency $ 4,283 3,326 4,436 990 13,035 Reported Operating Companies Income excluding Currency & Acquisitions $
(b)
2010
% Change in Reported Operating Companies Income
Reported Operating Companies Income $ 4,560 3,229 4,836 988 13,613
Less Currency $ 277 (97) 400 (2) 578
Less Acquisitions $ (1) (13) 28 14
Reported Operating Companies Income European Union EEMA Asia Latin America & Canada PMI Total $ 4,311 3,152 3,049 953 11,465
Reported 5.8% 2.4% 58.6% 3.7% 18.7%
Reported excluding Currency (0.6)% 5.5% 45.5% 3.9% 13.7%
Reported excluding Currency & Acquisitions (0.6)% 5.9% 44.6% 3.9% 13.6%
4,284 3,339 4,408 990 13,021
(a) Includes the business combination in the Philippines ($105) (b) Includes the business combination in the Philippines ($23)
74

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)
2011 Adjusted Operating Companies Income excluding Currency $ 4,328 3,351 4,451 1,014 13,144 $ Adjusted Operating Companies Income excluding Currency & Acquisitions (1) (1) 28 26 $
(a)
2010
% Change in Adjusted Operating Companies Income
Reported Operating Companies Income $ 4,560 3,229 4,836 988 13,613
Less Asset Impairment & Exit Costs $ (45) (25) (15) (24) (109)
Adjusted Operating Companies Income $ 4,605 3,254 4,851 1,012 13,722
Less Currency $ 277 (97) 400 (2) 578
Less Acquisitions
Reported Operating Companies Income European Union EEMA Asia Latin America & Canada PMI Total $ 4,311 3,152 3,049 953 11,465
Less Asset Impairment & Exit Costs $ (27) (20) (47)
Adjusted Operating Companies Income $ 4,338 3,152 3,069 953 11,512
Adjusted 6.2% 3.2% 58.1% 6.2% 19.2%
Adjusted excluding Currency (0.2)% 6.3% 45.0% 6.4% 14.2%
Adjusted excluding Currency & Acquisitions (0.2)% 6.3% 44.1% 6.4% 14.0%
4,329 3,352 4,423 1,014 13,118
2011 Adjusted Operating Companies Income Margin excluding Currency 49.3% 42.8% 44.4% 31.4% 44.0% Adjusted Operating Companies Income excluding Currency & Acquisitions $ 4,329 3,352 4,423 1,014 13,118 Adjusted Operating Companies Income Margin excluding Currency & Acquisitions 49.4% 42.9% 44.7% 31.4% 44.2% European Union EEMA Asia Latin America & Canada PMI Total
2010
% Points Change Adjusted Adjusted Operating Operating Companies Companies Income Income Margin Margin excluding excluding Currency & Currency Acquisitions 0.1 0.3 5.7 0.2 1.7 0.2 0.4 6.0 0.2 1.9
Adjusted Operating Companies Income excluding Currency $ 4,328 3,351 4,451 1,014 13,144
Net Revenues excluding Excise Taxes & Currency(b) $ 8,772 7,832 10,015 3,229 29,848
Net Revenues excluding Excise Taxes, Currency & Acquisitions(b) $ 8,772 7,807 9,903 3,229 29,711
Adjusted Operating Companies Income $ 4,338 3,152 3,069 953 11,512 $
Net Revenues excluding Excise Taxes(b) 8,811 7,409 7,935 3,053 27,208
Adjusted Operating Companies Income Margin 49.2% 42.5% 38.7% 31.2% 42.3%
(a) Includes the business combination in the Philippines ($23) (b) For the calculation of net revenues excluding excise taxes, currency and acquisitions, refer to previous slide
75

Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS and Adjusted Diluted EPS, excluding Currency For the Years Ended December 31, (Unaudited)
2011 Reported Diluted EPS Adjustments: Asset impairment and exit costs Tax items Adjusted Diluted EPS Less: Currency impact Adjusted Diluted EPS, excluding Currency $ 0.19 4.69 $ $ 0.05 (0.02) 4.88 $ $ 4.85 $
2010 3.92
% Change 23.7%
0.02 (0.07) 3.87 26.1%
3.87
21.2%
76

Adjustments for the Impact of Currency and Acquisitions For the Quarters Ended March 31, ($ in millions) (Unaudited)
2012 Reported Net Revenues excluding Excise Taxes, Currency & Acquisitions $ 2,107 1,899 2,702 822 7,530 European Union EEMA Asia Latin America & Canada PMI Total 2011 % Change in Reported Net Revenues excluding Excise Taxes
Reported Net Revenues excluding Excise Taxes $ 2,053 1,835 2,777 783 7,448
Less Currency $ (54) (73) 74 (39) (92)
Reported Net Revenues excluding Excise Taxes & Currency $ 2,107 1,908 2,703 822 7,540
Less Acquisitions $ 9 1 10
Reported Net Revenues excluding Excise Taxes $ 2,001 1,687 2,323 780 6,791
Reported 2.6% 8.8% 19.5% 0.4% 9.7%
Reported excluding Currency 5.3% 13.1% 16.4% 5.4% 11.0%
Reported excluding Currency & Acquisitions 5.3% 12.6% 16.3% 5.4% 10.9%
2012 Reported Operating Companies Income excluding Currency $ 1,055 854 1,354 254 3,517 Reported Operating Companies Income excluding Currency & Acquisitions $ 1,055 854 1,354 254 3,517 European Union EEMA Asia Latin America & Canada PMI Total
2011
% Change in Reported Operating Companies Income
Reported Operating Companies Income $ 1,030 810 1,407 237 3,484
Less Currency $ (25) (44) 53 (17) (33)
Less Acquisitions $ -
Reported 2.4% 12.2% 28.7% (5.6)% 13.4%
Reported excluding Currency 4.9% 18.3% 23.9% 1.2% 14.5%
Reported excluding Currency & Acquisitions 4.9% 18.3% 23.9% 1.2% 14.5%
77

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 March 31, ($ in millions) (Unaudited)
2012 Adjusted Operating Companies Income excluding Currency $ 1,055 854 1,354 262 3,525 $ Adjusted Operating Companies Income excluding Currency & Acquisitions $ 1,055 854 1,354 262 3,525 European Union EEMA Asia Latin America & Canada PMI Total 2011 % Change in Adjusted Operating Companies Income
Less Asset Impairment & Exit Costs $ (8) (8)
Adjusted Operating Companies Income $ 1,030 810 1,407 245 3,492
Less Currency $ (25) (44) 53 (17) (33)
Less Acquisitions
Less Asset Impairment & Exit Costs $ (11) (2) (2) (1) (16)
Adjusted Operating Companies Income $ 1,017 724 1,095 252 3,088
Adjusted 1.3% 11.9% 28.5% (2.8)% 13.1%
Adjusted excluding Currency 3.7% 18.0% 23.7% 4.0% 14.2%
Adjusted excluding Currency & Acquisitions 3.7% 18.0% 23.7% 4.0% 14.2%
2012 Adjusted Operating Companies Income Margin excluding Currency 50.1% 44.8% 50.1% 31.9% 46.8% Adjusted Operating Companies Income excluding Currency & Acquisitions $ 1,055 854 1,354 262 3,525 Adjusted Operating Companies Income Margin excluding Currency & Acquisitions 50.1% 45.0% 50.1% 31.9% 46.8% European Union EEMA Asia Latin America & Canada PMI Total
2011
% Points Change Adjusted Adjusted Operating Operating Companies Companies Income Income Margin Margin excluding excluding Currency & Currency Acquisitions (0.7) 1.9 3.0 (0.4) 1.3 (0.7) 2.1 3.0 (0.4) 1.3
Adjusted Operating Companies Income excluding Currency $ 1,055 854 1,354 262 3,525
Net Revenues excluding Excise Taxes & Currency(a) $ 2,107 1,908 2,703 822 7,540
Net Revenues excluding Excise Taxes, Currency & Acquisitions(a) $ 2,107 1,899 2,702 822 7,530
Adjusted Operating Companies Income $ 1,017 724 1,095 252 3,088 $
Net Revenues excluding Excise Taxes(a) 2,001 1,687 2,323 780 6,791
Adjusted Operating Companies Income Margin 50.8% 42.9% 47.1% 32.3% 45.5%
(a) For the calculation of net revenues excluding excise taxes, currency and acquisitions, refer to previous slide
78

Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS and Adjusted Diluted EPS, Excluding Currency For the Quarters Ended March 31, (Unaudited)
2012 Reported Diluted EPS Adjustments: Asset impairment and exit costs Tax items Adjusted Diluted EPS Less: Currency impact Adjusted Diluted EPS, excluding Currency $ (0.02) 1.27 $ $ 1.25 $ $ 1.25 $
2011 1.06
% Change 17.9%
0.01 (0.01) 1.06 17.9%
1.06
19.8%
79

Reconciliation of Operating Cash Flow to Free Cash Flow ($ in millions) (Unaudited)
For the Years Ended December 31, 2011 Net cash provided by operating activities(a) Less: Capital expenditures Free cash flow $ 897 9,632 $ 713 8,724 $ 715 7,169 $ 1,099 6,836 $ 3,424 32,361 $ 10,529 $ 2010 9,437 $ 2009 7,884 $ 2008 7,935 $ Cumulative Total 2008 ~ 2011 35,785
(a) Operating Cash Flow
80

Calculation of Total Debt to EBITDA and Net Debt to EBITDA Ratios ($ in millions, except ratios) (Unaudited)
For the Year Ended December 31, 2011 Earnings before income taxes Interest expense, net Depreciation and amortization EBITDA $ $ 12,532 800 993 14,325 $ $ For the Year Ended December 31, 2010 10,324 876 932 12,132
December 31, 2011 Short-term borrowings Current portion of long-term debt Long-term debt Total Debt Less: Cash and cash equivalents Net Debt $ $ $ 1,511 2,206 14,828 18,545 2,550 15,995 $ $ $
December 31, 2010 1,747 1,385 13,370 16,502 1,703 14,799
Ratios Total Debt to EBITDA Net Debt to EBITDA 1.29 1.12 1.36 1.22
81

Calculation of EBITDA to Net Interest Ratio ($ in millions, except ratio) (Unaudited)
For the Year Ended December 31, 2011 Earnings before income taxes Interest expense, net Depreciation and amortization EBITDA $ $ 12,532 800 993 14,325
Interest expense, net
800
Ratio EBITDA to Net Interest 17.9
82

pHILIP MORRIS REVIEW

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Annual Meeting of Stockholders New York May 9, 2012

Forward-Looking and Cautionary Statements

Annual Meeting of Stockholders May 9, 2012

Outstanding Results in 2011

Source: PMI Financials

Outstanding Results in 2011

Adjusted Diluted EPS(b)

Outstanding Results in 2011 and Q1, 2012

Growth Q1, 2012 vs. Q1, 2011

Adjusted Diluted EPS(b)

Organic Cigarette Volume

Adjusted Diluted EPS(b)

Key Growth Drivers

Asia Region: Key Driver of Volume Growth

PMI Market Shares

EEMA Region: Consumer Uptrading

Parliament Volume Growth (%)

21.5 15.7 10.5 4.2 Russia

Q1, 2012: Solid Performance Across All Regions

28.5% 11.9% 1.3%

EU Region: Improved Performance

PMI Market Shares

Marlboro Market Shares

All Top Ten PMI Brands Grew Volume in 2011

All Top Ten PMI Brands Grew Volume in Q1, 2012

Balanced Geographic Footprint

EU 2011 Cigarette Volume: 915.3 billion units

EU 2011 Adjusted OCI: $13.7 billion

Source: PMI Financials

Fourth Consecutive Year of Global Market Share Growth

20 2007 2008 2009 2010 2011

Strong Share Momentum Continued in Q1, 2012

30 2010 2011 Q1, 2012

Pricing Environment Remains Favorable

0 0 2008 2009 2010 2011

Source: PMI Financials

Favorable Pricing and Volume/Mix Variances in Q1, 2012

Note: Variances at OCI level Source: PMI Financials

Rational Excise Tax Environment

No disruptively large excise tax increases so far in 2012

We generally support these regulations

PMI Opposes Extreme Regulatory Measures

Oversized Health Warnings are Unreasonable

PMI Does Not Oppose

PMI Strongly Opposes Uruguays Single Presentation Ordinance

Australia: We Oppose Plain Packaging

Costs and Productivity

Growing Free Cash Flow at Double-Digit Rate

5.0 2008 2009 2010 2011

Source: PMI Financials

Very Strong Capital Structure

Net Debt to EBITDA

EBITDA Interest Coverage

Debt to Enterprise Value

Focused Use of Cash Flow to Enhance Shareholder Returns

Free Cash Flow $32.4 billion

Net Debt Issuance and Other $9.9 billion

Cash Available $42.3 billion

Dividends(a) $18.6 billion 44%

Share Repurchases $21.4 billion 51%

Acquisitions $2.3 billion 5%

Substantial Share Repurchase Programs

Cumulative Amount ($ billion)

Shares Outstanding at Spin (%)