Philip Morris International Inc. (PMI) Reports 2013 First-Quarter Results; Revises 2013 Full-Year Reported Diluted EPS Forecast

  Philip Morris International Inc. (PMI) Reports 2013 First-Quarter Results;
  Revises 2013 Full-Year Reported Diluted EPS Forecast for Currency Only;
  Underlying Business Outlook Unchanged

Business Wire

NEW YORK -- April 18, 2013

Regulatory News:

  *Reported diluted earnings per share of $1.28, up by $0.03 or 2.4% versus
    $1.25 in 2012

       *Excluding unfavorable currency of $0.07, reported diluted earnings
         per share up by 8.0% versus $1.25 in 2012 as detailed in the attached
         Schedule 9

  *Adjusted diluted earnings per share of $1.29, up by $0.04 or 3.2% versus
    $1.25 in 2012

       *Excluding unfavorable currency of $0.07, adjusted diluted earnings
         per share up by 8.8% as detailed in the attached Schedule 8

  *Cigarette shipment volume decline of 6.5%

       *Cigarette shipment volume decline of 2.1%, excluding the Philippines

  *Reported net revenues, excluding excise taxes, up by 1.8% to $7.6 billion

       *Excluding currency, reported net revenues, excluding excise taxes, up
         by 3.2%

  *Reported operating companies income down by 0.4% to $3.5 billion

       *Excluding currency, reported operating companies income up by 3.1%

  *Adjusted operating companies income, reflecting the items detailed in the
    attached Schedule 7, down by 0.6% to $3.5 billion

       *Excluding currency, adjusted operating companies income up by 2.9%

  *Reported operating income down by 0.5% to $3.4 billion
  *Repurchased 16.7 million shares of its common stock for $1.5 billion
  *PMI revises, for prevailing exchange rates only, its 2013 full-year
    reported diluted earnings per share forecast to be in a range of $5.55 to
    $5.65, versus $5.17 in 2012

       *Excluding an unfavorable currency impact, at prevailing exchange
         rates, of approximately $0.19 for the full-year 2013, reported
         diluted earnings per share are projected to increase by approximately
         10-12% versus adjusted diluted earnings per share of $5.22 in 2012,
         as detailed in the attached Schedule 12.

Philip Morris International Inc. (NYSE / Euronext Paris: PM) today announced
its 2013 first-quarter results.

“Our first quarter was relatively difficult, with our headline results marred
by a number of known factors, including inventory movements, the 2012 leap
year effect, currency and a slowly improving – but nevertheless substantial
erosion in our – volume in the Philippines,” said Louis C. Camilleri, Chairman
and Chief Executive Officer.

“Despite this apparent weakness, our pricing actions and market share momentum
provide us with the confidence to reiterate our annual constant-currency
adjusted diluted EPS growth rate target of 10-12%.”

Conference Call

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

Dividends and Share Repurchase Program

During the first quarter, PMI spent $1.5 billion to repurchase 16.7 million
shares, as shown in the table below.

 Current $18 Billion, Three-Year Program
                             Value       Shares
                                  ($ Mio.)       000
  August-September 2012           893            9,825
  October-December 2012           1,960          22,380
  January-March 2013              1,500          16,685
  Total Under Program             4,353          48,890
                                                        

Since May 2008, when PMI began its first share repurchase program, the company
has spent an aggregate of $29.4 billion to repurchase 505.7 million shares at
an average price of $58.05 per share, or 24.0% of the shares outstanding at
the time of the spin-off in March 2008.

2013 Full-Year Forecast

PMI revises, for prevailing exchange rates only, its 2013 full-year reported
diluted earnings per share forecast to be in a range of $5.55 to $5.65, versus
$5.17 in 2012.

Excluding an unfavorable currency impact, at prevailing exchange rates, of
approximately $0.19 for the full-year 2013, reported diluted earnings per
share are projected to increase by approximately 10-12% versus adjusted
diluted earnings per share of $5.22 in 2012, as detailed in the attached
Schedule 12, unchanged from the constant-currency earnings per share forecast
disclosed on February 20, 2013.

The $0.19 in unfavorable currency for the full-year 2013, based on prevailing
exchange rates, represents an increase of $0.13 compared to the $0.06 of
full-year unfavorable currency forecast previously disclosed on February 20,
2013.

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

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

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

                   2013 FIRST-QUARTER CONSOLIDATED RESULTS

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

 NET REVENUES
                                                                             
  PMI Reported Net Revenues ($ Millions)
                                                            
                                     First-Quarter
                                                                      Excl.
                                     2013       2012       Change     Curr.
  European Union                     $1,970     $2,053     (4.0)%     (5.4)%
  Eastern Europe, Middle East        2,043      1,835      11.3%      10.8%
  & Africa
  Asia                               2,790      2,777      0.5%       4.8%
  Latin America & Canada             781        783        (0.3)%     2.2%
  Total PMI                          $7,584     $7,448     1.8%       3.2%
                                                                             

Net revenues of $7.6 billion were up by 1.8%, despite unfavorable currency of
$103 million. Excluding currency, net revenues increased by 3.2%, driven by
favorable pricing of $531 million across all Regions, partially offset by
unfavorable volume/mix of $292 million.

 OPERATING COMPANIES INCOME
                                                                             
  PMI Reported Operating Companies Income ($ Millions)
                                                            
                                     First-Quarter
                                                                      Excl.
                                     2013       2012       Change     Curr.
  European Union                     $938       $1,030     (8.9)%     (7.8)%
  Eastern Europe, Middle East        935        810        15.4%      15.8%
  & Africa
  Asia                               1,342      1,407      (4.6)%     2.7%
  Latin America & Canada             254        237        7.2%       8.9%
  Total PMI                          $3,469     $3,484     (0.4)%     3.1%
                                                                             

Reported operating companies income was down by 0.4% to $3.5 billion,
including unfavorable currency of $122 million. Excluding currency, operating
companies income was up by 3.1%, driven by higher pricing, partly offset by
unfavorable volume/mix of $231 million, higher manufacturing costs,
principally in Indonesia, and increased investments behind new brand launches,
notably two variants of Lark Ice Mint 100s in Japan, and the annualization of
business infrastructure investments in Russia.

Adjusted operating companies income declined by 0.6% as shown in the table
below and detailed in Schedule 7. Adjusted operating companies income,
excluding currency, increased by 2.9%.

 PMI Operating Companies Income ($ Millions)
                                                      
                                          First-Quarter
                                                                           
                                          2013       2012       Change
  Reported OCI                            $3,469     $3,484     (0.4)%
  Asset impairment & exit costs           (3)        (8)
  Adjusted OCI                            $3,472     $3,492     (0.6)%
  Adjusted OCI Margin*                    45.8%      46.9%      (1.1) p.p.

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


Adjusted operating companies income margin, excluding currency, was down by
0.1 point to 46.8%, as detailed in Schedule 7.


  SHIPMENT VOLUME & MARKET SHARE
                                                                             
  PMI Cigarette Shipment Volume by Segment (Million Units)
                                                           
                                             First-Quarter
                                                                             
                                             2013       2012        Change
  European Union                             42,967      47,789      (10.1)%
  Eastern Europe, Middle East &              66,834      65,928      1.4%
  Africa
  Asia                                       72,619      81,030      (10.4)%
  Latin America & Canada                     22,527      24,343      (7.5)%
  Total PMI                                  204,947     219,090     (6.5)%
                                                                             

2013 First-Quarter

PMI’s cigarette shipment volume of 204.9 billion units was down by 6.5%,
reflecting: a challenging comparison to the first quarter of 2012 in which
cigarette shipment volume grew by 5.3%, excluding acquisitions; the favorable
impact of the leap year in the first quarter of 2012; the unfavorable reversal
in the quarter of trade inventories built up in the fourth quarter of 2012
ahead of excise tax increases in 2013, notably in Turkey; in the EU, the
unfavorable impact of excise tax-driven price increases, the weak economic and
employment environment, the growth of the OTP category, and the increased
prevalence of illicit trade; and, the unfavorable impact of the disruptive
January 2013 excise tax increase in the Philippines which reduced PMI shipment
volume by 10.0 billion units or 42.5%. Excluding the Philippines, PMI’s
cigarette shipment volume was down by 2.1%, or by 1.7% including other tobacco
products (OTP) in cigarette equivalent units.

In the EU, PMI’s cigarette shipment volume of 43.0 billion units decreased by
10.1%, predominantly due to the aforementioned factors, notably in southern
Europe which accounted for approximately 60% of the total decline. In EEMA,
PMI’s cigarette shipment volume of 66.8 billion units grew by 1.4%, driven
notably by North Africa, the Middle East, Russia and Ukraine, partly offset by
Turkey. In Asia, PMI’s cigarette shipment volume of 72.6 billion units
decreased by 10.4%, largely reflecting the aforementioned unfavorable excise
tax impact in the Philippines, partially offset by Indonesia and Japan.
Excluding the Philippines, PMI’s total cigarette shipment volume in Asia grew
by 2.8%. In Latin America & Canada, PMI’s cigarette shipment volume of 22.5
billion units decreased by 7.5%, due primarily to a lower total market in
Argentina, Brazil and Mexico.

Total cigarette shipments of Marlboro of 68.7 billion units were down by 4.8%,
due primarily to declines in: the EU, notably France and Spain, partly offset
by Germany; EEMA, primarily Russia, Turkey and Ukraine, partly offset by
Egypt; Asia, largely the Philippines, partly offset by Japan; and Latin
America & Canada, mainly Argentina, Brazil and Mexico. Excluding the
Philippines, total cigarette shipments of Marlboro declined by 2.2%.

Total cigarette shipments of L&M of 22.2 billion units were up by 4.3%, driven
notably by Egypt, Russia and Saudi Arabia, partly offset by Germany and
Turkey. Total cigarette shipments of Bond Street of 9.9 billion units
decreased by 0.7%. Total cigarette shipments of Philip Morris of 8.5 billion
units decreased by 11.4%, due primarily to Italy and the Philippines. Total
cigarette shipments of Parliament of 9.8 billion units were up by 5.4%, fueled
by Kazakhstan and Russia. Total cigarette shipments of Chesterfield of 7.7
billion units were down by 6.0%, due primarily to Italy, Russia, Spain and the
Ukraine, partly offset by Germany. Total cigarette shipments of Lark of 6.8
billion units decreased by 8.3%, due predominantly to Turkey, partly offset by
Japan.

Total shipment volume of other tobacco products (OTP), in cigarette equivalent
units, grew by 8.8%, notably in Belgium, France and Spain. Total shipment
volume for cigarettes and OTP combined was down by 6.0%.

PMI’s market share grew in a number of key markets, including Algeria, Brazil,
Canada, Colombia, Egypt, France, Germany, Hong Kong, Indonesia, Italy,
Kazakhstan, the Netherlands, Poland, Saudi Arabia, Spain, Thailand, Turkey,
Ukraine and the United Kingdom.

                          EUROPEAN UNION REGION (EU)

2013 First-Quarter

In the EU, net revenues decreased by 4.0% to $2.0 billion. Excluding favorable
currency of $27 million, net revenues decreased by 5.4%, due to unfavorable
volume/mix of $178 million, largely reflecting a lower total market,
predominantly in Germany, Italy and Spain, partly offset by favorable pricing
of $68 million, driven mainly by France, the Netherlands and Spain.

Operating companies income decreased by 8.9% to $938 million. Excluding
unfavorable currency of $12 million, operating companies income decreased by
7.8%, principally reflecting unfavorable volume/mix of $140 million, partially
offset by favorable pricing.

Adjusted operating companies income decreased by 8.9%, as shown in the table
below and detailed on Schedule 7. Adjusted operating companies income,
excluding currency, decreased by 7.8%.

 EU Operating Companies Income ($ Millions)
                                                       
                                          First-Quarter
                                                 
                                          2013      2012       Change
  Reported OCI                            $938      $1,030     (8.9)%
  Asset impairment & exit costs           0         0
  Adjusted OCI                            $938      $1,030     (8.9)%
  Adjusted OCI Margin*                    47.6%     50.2%      (2.6) p.p.

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

Adjusted operating companies income margin, excluding currency, was down by
1.3 points to 48.9%, as detailed on Schedule 7, primarily as a result of the
aforementioned unfavorable volume/mix.

The total cigarette market in the EU declined by 10.5% to 112.5 billion units,
due primarily to tax-driven price increases, the unfavorable economic and
employment environment, particularly in southern Europe, the growth of the OTP
category, and the increased prevalence of illicit trade. The total OTP market
in the EU was up by 0.8% to 38.8 billion cigarette equivalent units, driven by
the fine cut category, up by 2.1% to 33.9 billion cigarette equivalent units.

Although PMI’s cigarette shipment volume in the EU declined by 10.1%, due
principally to a lower total market across the Region, PMI’s market share was
up by 0.7 points to 38.1%. While shipment volume of Marlboro decreased by
5.8%, mainly due to a lower total market, market share was up by 0.7 points to
18.7%, mainly reflecting flat or growing share across 70% of the Region’s
markets. Despite a shipment volume decline for L&M of 9.7%, market share was
flat at 6.6%. Shipment volume of Chesterfield was up by 1.6% and market share
was up by 0.2 points to 3.7%, driven by gains notably in Austria, the Czech
Republic, Portugal and the United Kingdom, partly offset by Germany. Although
shipment volume of Philip Morris declined by 14.5%, market share was up by 0.3
points to 1.9%, with gains notably in France, Italy and Portugal.

PMI’s shipments of OTP, in cigarette equivalent units, grew by 6.9%,
reflecting a higher total market and share. PMI’s OTP total market share was
12.8%, up by 0.7 points, driven by gains in the fine cut category, notably in
Belgium, up by 0.8 points to 16.9%, France, up by 1.2 points to 26.4%, Greece,
up by 0.6 points to 11.7%, Italy, up by 3.3 points to 30.5% and Spain, up by
4.0 points to 13.5%.

EU Key Market Commentaries

In France, the total cigarette market was down by 8.6% to 11.5 billion units,
mainly reflecting the unfavorable impact of price increases in the fourth
quarter of 2012, an increase in illicit trade, growth of the OTP category, and
a weakening economy. Although PMI’s shipments were down by 5.0%, market share
was up by 0.4 points to 40.0%, mainly driven by the resilience of premium
Philip Morris,  up by 1.0 point to 9.2%, and the growth of Chesterfield,  up
by 0.2 points to 3.4%. Market shares of Marlboro and L&M were down by 0.2 and
0.4 points to 24.5% and 2.5%, respectively. The total fine cut category was up
by 6.5% to 3.4 billion cigarette equivalent units. PMI’s market share of the
fine cut category was up by 1.2 points to 26.4%.

In Germany, the total cigarette market was down by 6.6% to 18.7 billion units,
primarily reflecting a challenging comparison to the first quarter of 2012, in
which the total cigarette market was up by 3.1%, and the unfavorable reversal
in the quarter of trade inventory movements of competitors’ products in
December 2012 ahead of the January 2013 excise tax increase. Although PMI’s
shipments were down by 6.2%, market share was up by 0.2 points to 36.1%, with
Marlboro up by 1.5 points to 22.3%, offset by L&M,  down by 0.7 points to
10.5% and Chesterfield, down by 0.7 points to 1.6%. The total fine cut
category was up by 1.2% to 9.9 billion cigarette equivalent units. PMI’s
market share of the fine cut category was flat at 14.9%.

In Italy, the total cigarette market was down by 9.5% to 16.8 billion units,
reflecting the impact of price increases in March 2012, an unfavorable
economic environment, and an increase in illicit trade. Although PMI’s
shipments were down by 14.5%, largely due to the lower total market and
unfavorable distributor inventory movements, market share was up by 0.6 points
to 53.2%, with Marlboro, up by 0.9 points to 25.6%, driven by both the Red and
Gold families. Market share of Philip Morris was up by 0.7 points to 1.9%,
benefiting from the 2012 launch of Philip Morris Selection in the low-price
segment, and share of Chesterfield grew by 0.1 point to 3.6%, partially offset
by Diana in the low-price segment, down by 0.8 points to 12.0%, impacted by
the availability of non-duty paid products. The total fine cut category was
down by 3.6% to 1.4 billion cigarette equivalent units, reflecting the 2012
excise tax-driven reduction of the price gap differential with cigarettes.
PMI’s market share of the fine cut category was up by 3.3 points to 30.5%,
driven by the launch of Marlboro Red and Gold fine cut.

In Poland, the total cigarette market was down by 10.4% to 11.7 billion units,
mainly reflecting the unfavorable impact of the availability of non-duty paid
OTP products, as well as a challenging comparison to the first quarter of 2012
in which the total cigarette market was up by 1.0%. Although PMI’s shipments
were down by 9.0%, market share was up by 0.5 points to 33.3%, benefiting from
the 2012 launch of two new Marlboro super slims variants. Market shares of
Marlboro, Chesterfield and L&M were up by 0.7, 0.1 and 0.9 points to 10.1%,
1.8% and 15.8%, respectively. The total fine cut category was down by 18.0% to
1.0 billion cigarette equivalent units, reflecting the prevalence of the
aforementioned non-duty paid OTP products. PMI’s market share of the fine cut
category was down by 1.7 points to 16.5%.

In Spain, the total cigarette market was down by 15.0% to 10.9 billion units,
mainly reflecting the impact of price increases in 2012 and the first quarter
of 2013, the unfavorable economic environment, the growth of the OTP category
and illicit trade, and a challenging comparison to the first quarter of 2012
in which the total cigarette market was up by 0.7%. Although PMI’s shipments
were down by 21.5%, driven by the total market contraction and unfavorable
distributor inventory movements, PMI market share was up by 0.2 points to
30.4%, with higher share of Marlboro, up by 0.2 points to 14.1%, and
Chesterfield, up by 0.3 points to 9.2%, partly offset by L&M, down by 0.1
point to 6.4% and Philip Morris, down by 0.2 points to 0.5%. The total fine
cut category was up by 43.3% to 2.6 billion cigarette equivalent units. PMI’s
market share of the fine cut category was up by 4.0 points to 13.5%.

              EASTERN EUROPE, MIDDLE EAST & AFRICA REGION (EEMA)

2013 First-Quarter

In EEMA, net revenues increased by 11.3% to $2.0 billion. Excluding favorable
currency of $10 million, net revenues increased by 10.8%, reflecting favorable
pricing of $194 million, principally in Russia, Turkey and Ukraine, and
favorable volume/mix of $4 million.

Operating companies income increased by 15.4% to $935 million. Excluding
unfavorable currency of $3 million, operating companies income increased by
15.8%, due primarily to higher pricing, and favorable volume/mix of $3
million, partly offset by higher costs, principally related to the
annualization of investments in business infrastructure in Russia.

Adjusted operating companies income increased by 15.4%, as shown in the table
below and detailed on Schedule 7. Adjusted operating companies income,
excluding currency, increased by 15.8%.

 EEMA Operating Companies Income ($ Millions)
                                                      
                                          First-Quarter
                                                                           
                                          2013        2012        Change
  Reported OCI                            $935        $810        15.4%
  Asset impairment & exit costs           0           0
  Adjusted OCI                            $935        $810        15.4%
  Adjusted OCI Margin*                    45.8%       44.1%       1.7 p.p.

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

Adjusted operating companies income margin, excluding currency, was up by 2.0
points to 46.1%, as detailed on Schedule 7.

PMI’s cigarette shipment volume in EEMA increased by 1.4%, mainly reflecting
improved market conditions and higher share in Egypt, partly offset by the
reversal in the quarter of trade inventory movements in the fourth quarter of
2012 particularly ahead of the January 2013 excise tax increase in Turkey.

Although PMI’s cigarette shipment volume of Marlboro was down by 0.9%,
shipment volume of premium brands grew by 0.8%, driven by Parliament, up by
7.8%.

EEMA Key Market Commentaries

In Russia, PMI’s shipment volume in the first quarter increased by 1.8%,
reflecting the timing of favorable distributor inventory movements. Shipment
volume of PMI’s premium portfolio was up by 3.3%, driven by Parliament, up by
11.2%, offsetting a decline in Marlboro of 12.3%. In the mid-price segment,
shipment volume was down by 0.5%, mainly due to Chesterfield, down by 11.5%,
partially offset by L&M, up by 22.6%. In the low-price segment, shipment
volume was up by 2.4%, driven by Bond Street, up by 2.5%, and Next, up by
11.9%, partially offset by Optima and Apollo Soyuz, down by 0.7% and 9.2%,
respectively. PMI’s February year-to-date market share of 26.2%, as measured
by Nielsen, was flat. Market share of Parliament was up by 0.2 points to 3.3%;
Marlboro was down by 0.2 points to 1.8%, but flat compared to the third and
fourth quarters of 2012; L&M was up by 0.1 point to 2.6%  and Chesterfield was
down by 0.2 points to 3.2%; Bond Street was up by 0.3 points to 6.6%; and Next
was up by 0.1 point to 3.0%.

In Turkey, the total cigarette market decreased by an estimated 11.6% to 18.2
billion units, primarily reflecting the unfavorable reversal in the quarter of
trade inventory movements in the fourth quarter of 2012, which was up by
24.8%, ahead of the January 2013 excise tax increase. Although PMI’s shipment
volume decreased by 17.4%, PMI’s February year-to-date market share, as
measured by Nielsen, grew by 0.1 point to 44.7%, driven by premium Parliament
and  mid-price Muratti,  up by 1.0 and 0.4 points to 9.3% and 6.8%,
respectively, partly offset by a decline in low-price L&M, down by 0.8 points
to 7.6%. Market share of Marlboro was down by 0.2 points to 8.9%.

In Ukraine, the total cigarette market declined by an estimated 11.6% to 16.3
billion units, reflecting a challenging comparison to the first quarter of
2012, in which the total cigarette market was up by 5.6%, and the reversal of
trade inventory movements in the fourth quarter of 2012 ahead of an excise tax
restructuring in January 2013. PMI’s shipment volume increased by 1.8%, driven
by Optima and President. PMI’s February year-to-date market share, as measured
by Nielsen, was up by 1.8 points to 34.0%, mainly due to growth from PMI’s
low-price segment brands of Bond Street, Optima and President. Share for
premium Parliament was up by 0.3 points to 3.4%. Although share of Marlboro
was down by 0.1 point to 5.7%, it was flat compared to the third and fourth
quarters of 2012.

                                 ASIA REGION

2013 First-Quarter

In Asia, net revenues increased by 0.5% to $2.8 billion, despite unfavorable
currency of $121 million. Excluding currency, net revenues increased by 4.8%,
reflecting favorable pricing of $193 million, principally in Australia,
Indonesia and the Philippines, partially offset by unfavorable volume/mix of
$59 million, primarily due to the Philippines.

Operating companies income of $1.3 billion declined by 4.6%, primarily due to
unfavorable currency of $103 million. Excluding currency, operating companies
income increased by 2.7%, reflecting favorable pricing, partially offset by
higher manufacturing costs, principally in Indonesia, and the timing of
investments behind new brand launches, notably two variants of Lark Ice Mint
100s in Japan.

Adjusted operating companies income decreased by 4.4% as shown in the table
below and detailed on Schedule 7. Adjusted operating companies income,
excluding currency, increased by 2.9%.

 Asia Operating Companies Income ($ Millions)
                                                      
                                        First-Quarter
                                                                             
                                        2013         2012         Change
  Reported OCI                          $1,342       $1,407       (4.6)%
  Asset impairment & exit               (3)          0
  costs
  Adjusted OCI                          $1,345       $1,407       (4.4)%
  Adjusted OCI Margin*                  48.2%        50.7%        (2.5) p.p.

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

Adjusted operating companies income margin, excluding currency, was down by
1.0 point to 49.7%, as detailed on Schedule 7, primarily reflecting the impact
of the aforementioned higher costs.

PMI’s cigarette shipment volume in Asia decreased by 10.4%, due primarily to
the aforementioned decline in the Philippines. Excluding the Philippines,
PMI’s cigarette shipment volume increased by 2.8%, with increases mainly in
Japan and Indonesia.

Shipment volume of Marlboro was down by 6.6%, or up by 4.4% excluding the
Philippines, driven by Japan.

Asia Key Market Commentaries

In Indonesia, the total cigarette market was up by 0.8% to 74.5 billion units,
reflecting a challenging comparison to the first quarter of 2012 in which the
total cigarette market grew by 13.9%. The total cigarette market for the
full-year 2013 is estimated to increase by 5-6%. PMI’s shipment volume in the
quarter grew by 4.9%. PMI’s market share was up by 1.4 points to 36.3%, driven
notably by Sampoerna A in the premium segment, up by 0.8 points to 14.4%, and
mid-price U Mild, up by 1.2 points to 4.1%. Marlboro’s market share was up by
0.1 point to 5.0% and its share of the “white” cigarettes segment increased by
4.0 points to 74.5 %.

In Japan, the total cigarette market decreased by 3.2% to 45.1 billion units.
PMI’s shipment volume was up by 6.9%, reflecting favorable distributor
inventory movements. Although PMI’s market share was down by 0.5 points to
27.5%, reflecting widespread promotional activities by PMI’s principal
competitor, Marlboro continued to demonstrate resilience with share unchanged
at 12.3%. Share of Lark and Philip Morris was down by 0.4 and 0.2 points to
8.3% and 2.2%, respectively, partially offset by Virginia S., up by  0.2
points to 2.2%.

In Korea, the total cigarette market increased by 0.6% to 20.5 billion units,
reflecting trade inventory movements ahead of a speculated excise tax
increase. PMI’s shipment volume decreased by 4.3%, reflecting share declines
following its price increases in February 2012. While PMI’s market share was
down by 1.2 points to 19.2%, it was flat compared to the full-year 2012, and
up by 0.3 points versus the fourth quarter of 2012. Market share of Marlboro
and Parliament was down by 1.2 and 0.2 points to 7.6% and 6.8%, respectively,
partly offset by Virginia S., up by 0.5 points to 4.1%.

In the Philippines, PMI’s shipment volume was down by 42.5%, primarily
reflecting: the unfavorable impact of the disruptive excise tax increase in
January 2013, which resulted in a recommended retail selling price increase
for premium Marlboro and low-price Fortune of approximately 60% and 70%,
respectively; the reversal of the prior-year trade inventory build-up in
anticipation of the tax increase; and, the unfavorable impact of higher prices
on trade working capital requirements. Although industry cigarette shipment
volume was estimated to have declined by 39%, Nielsen consumer off-take data
indicates that total cigarette consumption declined significantly less. The
difference reflects the unfavorable impact of the aforementioned trade
inventory movements and the high prevalence of local non-duty paid product.
Total industry cigarette shipments are estimated to decline 20-25% for the
full-year 2013. Market share in the quarter declined by 5.0 points to 87.8%.
Marlboro’s market share was up by 0.7 points to 21.6%. Share of low-price
Fortune was down by 6.2 points to 43.5%.

                        LATIN AMERICA & CANADA REGION

2013 First-Quarter

In Latin America & Canada, net revenues decreased by 0.3% to $781 million,
including unfavorable currency of $19 million. Excluding currency, net
revenues increased by 2.2%, reflecting favorable pricing of $76 million,
principally in Argentina, Brazil and Mexico, partially offset by unfavorable
volume/mix of $59 million.

Operating companies income increased by 7.2% to $254 million. Excluding
unfavorable currency of $4 million, operating companies income increased by
8.9%, primarily reflecting favorable pricing, partially offset by unfavorable
volume/mix of $51 million.

Adjusted operating companies income increased by 3.7% as shown in the table
below and detailed on Schedule 7. Adjusted operating companies income,
excluding currency, increased by 5.3%.

 Latin America & Canada Operating Companies Income ($ Millions)
                                                     
                                          First-Quarter
                                                                        
                                          2013       2012      Change
  Reported OCI                            $254       $237      7.2%
  Asset impairment & exit costs           0          (8)
  Adjusted OCI                            $254       $245      3.7%
  Adjusted OCI Margin*                    32.5 %     31.3%     1.2 p.p.

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

Adjusted operating companies income margin, excluding currency, was up by 1.0
point to 32.3%, as detailed on Schedule 7.

PMI’s cigarette shipment volume in Latin America & Canada decreased  by 7.5%,
principally due to a lower total market in Brazil and a lower total market and
share in Argentina and Mexico. Shipment volume of Marlboro decreased by 6.8%,
mainly reflecting total market declines in Argentina, Brazil and Mexico,
partly offset by market share gains in Brazil and Colombia.

Latin America & Canada Key Market Commentaries

In Argentina, the total cigarette market decreased by 4.9% to 10.8 billion
units, largely due to the weakening of the economy. PMI’s cigarette shipment
volume decreased by 5.3%. While PMI’s market share was down by 0.5 points to
74.6%, it was flat compared to the fourth quarter of 2012. The share decline
was mainly driven by Marlboro and  low-price Next, down by  0.8 and 0.5 points
to 24.0% and 2.8%, respectively, partially offset by share of mid-price Philip
Morris, up by 1.5 points to 40.1%.

In Canada, the total tax-paid cigarette market was down by 4.3% to 6.3 billion
units, primarily reflecting trade inventory movements of competitors’ products
in 2012. Although PMI’s cigarette shipment volume declined by 2.0%, market
share was up by 0.7 points to 36.1%, with premium brand Belmont up by 0.1
point to 2.4%, and low-price brand Next up by 1.9 points to 9.1%, partly
offset by mid-price Number 7 and low-price Accord, down by 0.1 and 0.4 points,
to 4.3% and 3.0%, respectively. Market share of mid-price Canadian Classics
was up by 0.1 point to 10.0%.

In Mexico, the total cigarette market was down by 2.7% to 8.1 billion units,
primarily reflecting the impact of price increases in 2012 and January 2013.
PMI’s cigarette shipment volume decreased by 3.9%. PMI’s market share declined
by 0.8 points to 73.5%. Although share of Marlboro was down by 1.1 share
points to 53.2%, its share of the premium price segment increased by 0.8
points to 81.1%. Market share of premium Benson & Hedges declined by 0.5
points to 5.8%. While market share of low-price Delicados, the second
best-selling brand in the market, decreased by 0.3 points to 10.5%, the
decline was offset by gains from PMI’s other local low-price brands.

Philip Morris International Inc. Profile

Philip Morris International Inc. (PMI) is the leading international tobacco
company, with seven of the world’s top 15 international brands, including
Marlboro, the number one cigarette brand worldwide. PMI’s products are sold in
more than 180 markets. In 2012, the company held an estimated 16.3% share of
the total international cigarette market outside of the U.S., or 28.8%
excluding the People’s Republic of China and the U.S. For more information,
see www.pmi.com.

Forward-Looking and Cautionary Statements

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

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

                                                                     
                                                                                      
  Schedule 1
  PHILIP MORRIS INTERNATIONAL INC.
  and Subsidiaries
  Condensed Statements of Earnings
  For the Quarters Ended March 31,
  ($ in millions, except per share data)
  (Unaudited)
                                                                                      
                          2013              2012                % Change   
  Net revenues             $    18,527       $    18,022           2.8      %
  Cost of sales                    2,489                2,442            1.9      %
  Excise taxes
  on products                 10,943        10,574          3.5      %
  ^(1)
  Gross profit                     5,095                5,006            1.8      %
  Marketing,
  administration                   1,623                1,514
  and research
  costs
  Asset
  impairment and              3             8      
  exit costs
  Operating
  companies                        3,469                3,484            (0.4 )   %
  income
  Amortization                     24                   24
  of intangibles
  General
  corporate                   58            57     
  expenses
  Operating                        3,387                3,403            (0.5 )   %
  income
  Interest                    236           213    
  expense, net
  Earnings
  before income                    3,151                3,190            (1.2 )   %
  taxes
  Provision for               933           958             (2.6 )   %
  income taxes
  Net earnings                     2,218                2,232            (0.6 )   %
  Net earnings
  attributable
  to                          93            71     
  noncontrolling
  interests
  Net earnings
  attributable            $    2,125     $    2,161           (1.7 )   %
  to PMI
                                                                                      
  Per share
  data:^(2)
  Basic earnings          $    1.28      $    1.25            2.4      %
  per share
  Diluted
  earnings per            $    1.28      $    1.25            2.4      %
  share


  ^(1) The segment detail of excise taxes on products sold for the quarters
  ended March 31, 2013 and 2012 is shown on Schedule 2.
  
  ^(2) Net earnings and weighted-average shares used in the basic and diluted
  earnings per share computations for the quarters ended March 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 March 31,
  ($ in millions)
  (Unaudited)
                                                                                              
                                    Net Revenues excluding Excise Taxes
                                                                                           Latin
                                    European
                                                   EEMA             Asia             America &     Total
                                    Union
                                                                                           Canada
                                                                                                                           
  2013         Net Revenues         $  6,523         $   4,423        $   5,251        $  2,330         $  18,527
               ^(1)
               Excise Taxes           (4,553 )       (2,380 )      (2,461 )     (1,549 )      (10,943 )
               on Products
               Net Revenues
               excluding               1,970               2,043              2,790            781               7,584
               Excise Taxes
                                                                                                                           
  2012         Net Revenues         $  6,470         $     4,069        $     5,177        $   2,306         $   18,022
               Excise Taxes           (4,417 )       (2,234 )      (2,400 )     (1,523 )      (10,574 )
               on Products
               Net Revenues
               excluding               2,053               1,835              2,777            783               7,448
               Excise Taxes
                                                                                                                           
  Variance     Currency                27                  10                 (121   )         (19    )          (103    )
               Acquisitions            -                   -                  -                -                 -
               Operations             (110   )       198          134         17           239     
               Variance                (83    )            208                13               (2     )          136
               Total
               Variance                (4.0   )%           11.3   %           0.5    %         (0.3   )%         1.8     %
               Total (%)
                                                                                                                           
               Variance
               excluding               (110   )            198                134              17                239
               Currency
               Variance
               excluding               (5.4   )%           10.8   %           4.8    %         2.2    %          3.2     %
               Currency (%)
                                                                                                                           
               Variance
               excluding               (110   )            198                134              17                239
               Currency &
               Acquisitions
               Variance
               excluding
               Currency &              (5.4   )%           10.8   %           4.8    %         2.2    %          3.2     %
               Acquisitions
               (%)
                                                                                                                           
  ^(1) 2013 Currency increased (decreased) net revenues as follows:
               European             $  103
               Union
               EEMA                    39
               Asia                    (162   )
               Latin
               America &              (86    )
               Canada
                                    $  (106   )


                                                                                                                  
  Schedule 3
  PHILIP MORRIS INTERNATIONAL INC.
  and Subsidiaries
  Selected Financial Data by Business Segment
  For the Quarters Ended March 31,
  ($ in millions)
  (Unaudited)
                                                                                      
                          Operating Companies Income
                                                                                     Latin
                          European
                                           EEMA             Asia               America    Total
                          Union                                                &

                                                                                     Canada
  2013                    $   938            $    935        $    1,342        $  254       $   3,469
  2012                        1,030                  810                1,407            237             3,484
  % Change                    (8.9   )%              15.4 %             (4.6  )%         7.2 %           (0.4  )%
                                                                                                                  
  Reconciliation:
  For the quarter
  ended March 31,         $   1,030          $       810        $       1,407        $   237       $     3,484
  2012
                                                                                                                  
  2012 Asset
  impairment and              -                      -                  -                8               8
  exit costs
  2013 Asset
  impairment and              -                      -                  (3    )          -               (3    )
  exit costs
                                                                                                                  
  Acquired                    -                      -                  -                -               -
  businesses
  Currency                    (12    )               (3   )             (103  )          (4  )           (122  )
  Operations                 (80    )         128         41          13        102   
  For the quarter
  ended March 31,         $   938         $    935     $    1,342     $  254    $   3,469 
  2013

                                                            
                                                                             
  Schedule 4
  PHILIP MORRIS INTERNATIONAL INC.
  and Subsidiaries
  Diluted Earnings Per Share
  For the Quarters Ended March 31,
  ($ in millions, except per share data)
  (Unaudited)
                                                                             
                                                      Diluted
                                                     E.P.S.
                                                                             
  2013 Diluted                                        $    1.28      ^(1)
  Earnings Per Share
  2012 Diluted                                        $       1.25      ^(1)
  Earnings Per Share
  Change                                              $       0.03
  % Change                                                    2.4       %
                                                                             
  Reconciliation:
  2012 Diluted                                        $       1.25      ^(1)
  Earnings Per Share
                                                                             
                                                                             
  Special Items:
  2012 Asset
  impairment and exit                                         -
  costs
  2012 Tax items                                              -
  2013 Asset
  impairment and exit                                         -
  costs
  2013 Tax items                                              (0.01 )
                                                                             
                                                                             
  Currency                                                    (0.07 )
  Interest                                                    (0.01 )
  Change in tax rate                                          0.01
  Impact of lower
  shares outstanding                                          0.05
  and share-based
  payments
  Operations                                             0.06  
  2013 Diluted                                       $    1.28     ^(1)
  Earnings Per Share
                                                                             
  ^(1) Basic and diluted EPS were calculated using the following (in
  millions):
                                                                             
                              Q1                      Q1
                                                                   
                              2013                    2012
                                                                             
  Net earnings                $    2,125           $       2,161
  attributable to PMI
  Less distributed
  and undistributed
  earnings
  attributable
  to share-based                 11                12     
  payment awards
  Net earnings for
  basic and diluted          $    2,114         $    2,149  
  EPS
                                                                 
  Weighted-average
  shares for basic               1,646             1,719  
  and diluted EPS


                                                                             
  Schedule 5
  PHILIP MORRIS INTERNATIONAL INC.
  and Subsidiaries
  Condensed Balance Sheets
  ($ in millions, except ratios)
  (Unaudited)
                                                               
                          March                   December 31,
                          31,
                         2013             2012           
  Assets
  Cash and cash           $      3,981               $   2,983
  equivalents
  All other                        12,680                    13,607
  current assets
  Property, plant
  and equipment,                   6,473                     6,645
  net
  Goodwill                         9,765                     9,900
  Other
  intangible                       3,597                     3,619
  assets, net
  Other assets                 922                 916     
  Total assets           $      37,418           $   37,670  
                                                                             
  Liabilities and
  Stockholders'
  (Deficit)
  Equity
  Short-term              $        1,539               $     2,419
  borrowings
  Current portion
  of long-term                     3,263                     2,781
  debt
  All other
  current                          9,707                     11,816
  liabilities
  Long-term debt                   20,796                    17,639
  Deferred income                  1,873                     1,875
  taxes
  Other long-term              2,972               2,993   
  liabilities
  Total                            40,150                    39,523
  liabilities
                                                                             
  Redeemable
  noncontrolling                   1,323                     1,301
  interest
                                                                             
  Total PMI
  stockholders'                    (4,314 )                  (3,476 )
  deficit
  Noncontrolling               259                 322     
  interests
  Total
  stockholders'                (4,055 )             (3,154 ) 
  deficit
  Total
  liabilities and
  stockholders'          $      37,418           $   37,670  
  (deficit)
  equity
                                                                             
  Total debt              $        25,598              $     22,839
  Total debt to                    1.74       ^(1)           1.55       ^(1)
  EBITDA
  Net debt to                      1.47       ^(1)           1.35       ^(1)
  EBITDA

 ^(1) For the calculation of Total Debt to EBITDA and Net Debt to EBITDA
  ratios, refer to Schedule 10.

                                                                                                                                            
                                                                                                                                                                         
  Schedule 6
  PHILIP MORRIS INTERNATIONAL INC.
  and Subsidiaries
  Reconciliation of Non-GAAP Measures
  Adjustments for the Impact of Currency and Acquisitions
  For the Quarters Ended March 31,
  ($ in millions)
  (Unaudited)
                                                                                                                                                                         
                                                                                                                                     % Change in Reported Net Revenues
  2013                                                                                             2012
                                                                                                                                     excluding Excise Taxes
                                                                       
                                                Reported
                         Reported                                      Reported Net                                      Reported
                                                Net
                         Net                                           Revenues                                          Net                                Reported
  Reported    Less                              Revenues    Less                                   Reported   Less                              Reported
                         Revenues    Less                              excluding                                         Revenues                           excluding
  Net         Excise                            excluding   Acquisi-                               Net        Excise                 Reported  excluding 
                         excluding   Currency                          Excise                                            excluding                          Currency &
  Revenues    Taxes                             Excise      tions                                  Revenues   Taxes                             Currency
                         Excise                                        Taxes,                                            Excise                             Acquisitions
                                                Taxes &
                         Taxes                                         Currency &                                        Taxes
                                                Currency
                                                                       Acquisitions
                                                                                                                                                                         
  $  6,523    $ 4,553    $  1,970    $ 27       $  1,943    $    -     $    1,943       European   $ 6,470    $ 4,417    $  2,053    (4.0  )%   (5.4  )%    (5.4    )%
                                                                                        Union
     4,423      2,380       2,043      10          2,033         -          2,033       EEMA         4,069      2,234       1,835    11.3  %    10.8  %     10.8    %
     5,251      2,461       2,790      (121 )      2,911         -          2,911       Asia         5,177      2,400       2,777    0.5   %    4.8   %     4.8     %
                                                                                        Latin
                                                                                        America
     2,330      1,549       781        (19  )      800           -          800         &            2,306      1,523       783      (0.3  )%   2.2   %     2.2     %

                                                                                        Canada
                                                                                                               
  $  18,527   $ 10,943   $  7,584    $ (103 )   $  7,687    $    -     $    7,687       PMI        $ 18,022   $ 10,574   $  7,448    1.8   %    3.2   %     3.2     %
                                                                                        Total
                                                                                                                                                                         
                                                                                                                                     % Change in Reported Operating
  2013                                                                                             2012
                                                                                                                                     Companies Income
                                                                       

                                                Reported               Reported

  Reported                                      Operating              Operating                                         Reported                           Reported
                                                            Less                                                                                Reported
  Operating                          Less       Companies              Companies                                         Operating                          excluding
                                                            Acquisi-                                                                 Reported  excluding 
  Companies                          Currency   Income                 Income                                            Companies                          Currency &
                                                            tions                                                                               Currency
  Income                                        excluding              excluding                                         Income                             Acquisitions

                                                Currency               Currency &

                                                                       Acquisitions
                                                                                                                                                                         
  $  938                             $ (12  )   $  950      $    -     $    950         European                         $  1,030    (8.9  )%   (7.8  )%    (7.8    )%
                                                                                        Union
     935                               (3   )      938           -          938         EEMA                                810      15.4  %    15.8  %     15.8    %
     1,342                             (103 )      1,445         -          1,445       Asia                                1,407    (4.6  )%   2.7   %     2.7     %
                                                                                        Latin
                                                                                        America
     254                               (4   )      258           -          258         &                                   237      7.2   %    8.9   %     8.9     %

                                                                                        Canada
                                                                                                                   
  $  3,469                           $ (122 )   $  3,591    $    -     $    3,591       PMI                              $  3,484    (0.4  )%   3.1   %     3.1     %
                                                                                        Total

                                                                                                                                                             
                                                                                                                                                                                         
  Schedule 7
  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 March 31,
  ($ in millions)
  (Unaudited)
                                                                                                                                                                                         
                                                                                                                                                     % Change in Adjusted Operating
  2013                                                                                                          2012
                                                                                                                                                     Companies Income
                                                                                      

                                                    Adjusted                          Adjusted
              Less                                                                                                          Less
  Reported                   Adjusted               Operating                         Operating                 Reported                 Adjusted                           Adjusted
              Asset                                                Less                                                     Asset                               Adjusted
  Operating                  Operating   Less       Companies                         Companies                 Operating                Operating                          excluding
              Impairment                                           Acquisi-                                                 Impairment               Adjusted  excluding 
  Companies                  Companies   Currency   Income                            Income                    Companies                Companies                          Currency &
              & Exit                                               tions                                                    & Exit                              Currency
  Income                     Income                 excluding                         excluding                 Income                   Income                             Acquisitions
              Costs                                                                                                         Costs
                                                    Currency                          Currency &

                                                                                      Acquisitions
                                                                                                                                                                                         
  $  938      $   -          $ 938       $ (12  )   $    950       $      -           $  950         European   $  1,030    $  -         $ 1,030     (8.9  )%   (7.8  )%    (7.8    )%
                                                                                                     Union
     935          -            935         (3   )        938              -              938         EEMA          810         -           810       15.4  %    15.8  %     15.8    %
     1,342        (3     )     1,345       (103 )        1,448            -              1,448       Asia          1,407       -           1,407     (4.4  )%   2.9   %     2.9     %
                                                                                                     Latin
                                                                                                     America
     254          -            254         (4   )        258              -              258         &             237         (8    )     245       3.7   %    5.3   %     5.3     %

                                                                                                     Canada
                                                                                                                               
  $  3,469    $   (3     )   $ 3,472    $ (122 )   $    3,594     $      -           $  3,594      PMI        $  3,484    $  (8    )   $ 3,492    (0.6  )%   2.9   %     2.9     %
                                                                                                     Total
                                                                                                                                                                                         
  2013                                                                                                          2012                                 % Points Change
                                                                                      
                                                                                                                                                                            Adjusted
                             Adjusted               Adjusted                          Adjusted                                                                  Adjusted
  Adjusted    Net                                                                                                                                                           Operating
                             Operating              Operating      Net Revenues       Operating                             Net          Adjusted               Operating
  Operating   Revenues                                                                                          Adjusted                                                    Companies
                             Companies              Companies      excluding          Companies                             Revenues     Operating              Companies
  Companies   excluding                                                                                         Operating                                                   Income
                             Income                 Income         Excise Taxes,      Income                                excluding    Companies              Income    
  Income      Excise                                                                                            Companies                                                   Margin
                             Margin                 excluding      Currency &         Margin                                Excise       Income                 Margin
  excluding   Taxes &                                                                                           Income                                                      excluding
                             excluding              Currency &     Acquisitions^(1)   excluding                             Taxes^(1)    Margin                 excluding
  Currency    Currency^(1)                                                                                                                                                  Currency &
                             Currency               Acquisitions                      Currency &                                                                Currency
                                                                                                                                                                            Acquisitions
                                                                                      Acquisitions
                                                                                                                                                                                         
  $  950      $   1,943        48.9  %              $    950       $      1,943          48.9   %    European   $  1,030    $  2,053       50.2  %              (1.3  )     (1.3    )
                                                                                                     Union
     938          2,033        46.1  %                   938              2,033          46.1   %    EEMA          810         1,835       44.1  %              2.0         2.0
     1,448        2,911        49.7  %                   1,448            2,911          49.7   %    Asia          1,407       2,777       50.7  %              (1.0  )     (1.0    )
                                                                                                     Latin
                                                                                                     America
     258          800          32.3  %                   258              800            32.3   %    &             245         783         31.3  %              1.0         1.0

                                                                                                     Canada
                                                                                                                      
  $  3,594    $   7,687       46.8  %              $    3,594     $      7,687          46.8   %    PMI        $  3,492    $  7,448      46.9  %              (0.1  )     (0.1    )
                                                                                                     Total
                                                                                                                                                                                         
  ^(1) For the calculation of net revenues excluding excise taxes, currency and acquisitions, refer to Schedule 6.

                                                               
                                                                               
  Schedule 8
  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 March 31,
  (Unaudited)
                                                                               
                        2013                2012              %
                                                                  Change
                                                                               
  Reported               $   1.28            $    1.25       2.4   %
  Diluted EPS
                                                                               
  Adjustments:
  Asset
  impairment                   -                     -
  and exit
  costs
  Tax items                0.01             -  
                                                                               
  Adjusted               $     1.29            $       1.25       3.2   %
  Diluted EPS
                                                                               
  Less:
  Currency                 (0.07 )                   
  impact
                                                                               
  Adjusted
  Diluted EPS,          $   1.36         $    1.25      8.8   %
  excluding
  Currency


                                                                                
  Schedule 9
                                                                
  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 March 31,
  (Unaudited)
                                                                                
                     2013        2012        %
                                                                   Change
                                                                                
  Reported
  Diluted             $   1.28            $      1.25         2.4   %
  EPS
                                                                                
  Less:
  Currency              (0.07 )                     
  impact
                                                                                
  Reported
  Diluted
  EPS,               $   1.35         $      1.25        8.0   %
  excluding
  Currency

                                                             
                                                                        Schedule
                                                                        10
  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
                     For the Year Ended                                 Year
                                                                        Ended
                     March 31,                                          December
                                                                        31,
                     2013                                               2012
                     April ~       January ~      12
                     December      March          months
                     2012       2013        rolling
                                                                                   
  Earnings
  before             $  9,797      $   3,151     $     12,948     $  12,987
  income taxes
  Interest               646              236                882            859
  expense, net
  Depreciation
  and                  671           222            893          898
  amortization
  EBITDA             $   11,114     $     3,609     $        14,723     $   14,744
                                                                                   
                                                                                   
                                                    March        December
                                                    31,          31,
                                                    2013      2012
                                                                                   
  Short-term                                        $        1,539      $   2,419
  borrowings
  Current
  portion of                                                 3,263          2,781
  long-term
  debt
  Long-term                                              20,796       17,639
  debt
  Total Debt                                        $        25,598     $   22,839
  Less: Cash
  and cash                                               3,981        2,983
  equivalents
  Net Debt                                          $        21,617     $   19,856
                                                                                   
                                                                                   
  Ratios
  Total Debt                                             1.74         1.55
  to EBITDA
  Net Debt to                                            1.47         1.35
  EBITDA

                                                        
                                                                              
  Schedule 11
  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 Ended March 31,
  ($ in millions)
  (Unaudited)
                                                                              
                         For the Quarters Ended
                        March 31,                             
                        2013                  2012               %
                                                                     Change
                                                                              
  Net cash
  provided by            $    1,363           $    1,898       (28.2 )%
  operating
  activities^(a)
                                                                              
  Less:
  Capital                   240              227   
  expenditures
                                                                              
  Free cash flow         $       1,123           $       1,671       (32.8 )%
                                                                              
  Less:
  Currency                  (262  )                    
  impact
                                                                              
  Free cash
  flow,                 $    1,385        $    1,671      (17.1 )%
  excluding
  currency
                                                                              
  
                                                                              
                         For the Quarters Ended
                        March 31,                             
                        2013                  2012               %
                                                                     Change
                                                                              
  Net cash
  provided by            $       1,363           $       1,898       (28.2 )%
  operating
  activities^(a)
                                                                              
  Less:
  Currency                  (265  )                    
  impact
                                                                              
  Net cash
  provided by
  operating
  activities,           $    1,628        $    1,898      (14.2 )%

  excluding
  currency
                                                                              
  ^(a) Operating cash flow.

                                                   
                                                                             
                                                                 Schedule 12
  PHILIP MORRIS INTERNATIONAL INC.
  and Subsidiaries
  Reconciliation of Non-GAAP Measures
  Reconciliation of Reported Diluted EPS to Adjusted Diluted
  EPS
  For the Year Ended December 31,
  (Unaudited)
                                                                             
                                      2012           
                                                                             
  Reported Diluted EPS                 $     5.17
                                                                             
  Adjustments:
  Asset impairment and                           0.03
  exit costs
  Tax items                                0.02 
                                                                             
  Adjusted Diluted EPS                $     5.22 
                                                                             

Contact:

Philip Morris International Inc.
Investor Relations:
New York: +1-917-663 2233
Lausanne: +41 (0)58 242 4666
or
Media:
Lausanne: +41 (0)58 242 4500
 
Press spacebar to pause and continue. Press esc to stop.