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Reflecting Ex-Currency Like-for-Like Adjusted
Growth of at Least 8% Vs. 2018 Adjusted Diluted EPS of $4.84

NEW YORK–(BUSINESS WIRE)–Regulatory News:

Philip Morris International Inc. (NYSE: PM) will host a live audio
webcast of its 2019 Annual Meeting of Shareholders at www.pmi.com/2019annualmeeting
today at 9:00 a.m. ET. The webcast will be in a listen-only mode. Louis
C. Camilleri, Chairman of the Board, will address shareholders and
answer questions. André Calantzopoulos, Chief Executive Officer, will
give the business presentation, including an overview of PMI’s
reduced-risk products strategy.

“We recorded a robust financial and strategic performance in 2018,
demonstrating that the underlying strength of our combustible business
is increasingly complemented by the tremendous opportunity of our
smoke-free products – led by IQOS – to accelerate business
growth,” said Mr. Calantzopoulos.

“Building on this overall performance last year, we are off to a
promising start in 2019. Positive momentum for our combustible tobacco
and smoke-free product portfolios drove total volume and share growth in
the first quarter.”

“We are very pleased that, yesterday, the U.S. Food and Drug
Administration confirmed that IQOS is appropriate for the
protection of public health and has authorized it for sale in the United
States. The FDA’s decision is a historic milestone and an important step
forward for the approximately 40 million American men and women who
smoke.”

“Regarding shareholder returns, dividends remain the primary use of our
operating cash flow after capital expenditures. Last June, we increased
our annual dividend for the eleventh consecutive year since the spin in
2008, representing a total increase of approximately 148% and a compound
annual growth rate of 9.5%. And while dividends remain at the Board’s
discretion, we are committed to generously rewarding our shareholders
over time.”

PMI reaffirms its 2019 full-year reported diluted EPS guidance, provided
on April 18, 2019, of at least $4.87 versus $5.08 in 2018. This guidance
includes an unfavorable currency impact of approximately $0.14 per
share, at then prevailing exchange rates.

Full-Year
2019 EPS Forecast

2019
Forecast

    2018  

Adjusted
Growth

       
Reported Diluted EPS $4.87

(a)

 

$5.08
2018 Tax items 0.02
2019 Asset impairment and exit costs 0.01
2019 Canadian tobacco litigation-related expense 0.09
2019 Loss on deconsolidation of RBH   0.12          
Adjusted Diluted EPS $5.09 $5.10
Net earnings attributable to RBH         (0.26) (b)    
Adjusted Diluted EPS $5.09 $4.84 (c)
Currency   (0.14)            
 
Adjusted Diluted EPS, excl. currency $5.23 $4.84 (c) ≥8%
 

(a) Reflects the exclusion of previously anticipated
net EPS of approximately $0.28 attributable to RBH from March
22,
2019 through December 31, 2019. The impact relating to the
eight-day stub period was not material.

(b) Net reported diluted EPS attributable to RBH from
March 22, 2018 through December 31, 2018.
(c) Pro forma.
 

This forecast excludes the impact of any future acquisitions,
unanticipated asset impairment and exit cost charges, future changes in
currency exchange rates, further developments related to the Tax Cuts
and Jobs Act, further developments pertaining to the judgment in the two
Québec Class Action lawsuits and the Companies’ Creditors Arrangement
Act
(CCAA) protection granted to Rothmans, Benson & Hedges Inc., and
any unusual events. Factors described in the Forward-Looking and
Cautionary Statements section below represent continuing risks to these
projections.

Final voting results will be included in a Form 8-K that PMI will file
with the SEC within the next few days.

An archived copy of the audio webcast of PMI’s Annual Meeting of
Shareholders will be available until 5:00 p.m. ET on Thursday, May 30,
2019 at www.pmi.com/2019annualmeeting.
Presentation slides and script will also be available at the same
website address.

Forward-Looking and Cautionary Statements

The presentation, related discussion and this release contain
projections of future results and other forward-looking statements.
Achievement of future 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: excise tax increases and discriminatory
tax structures; increasing marketing and regulatory restrictions that
could reduce our competitiveness, eliminate our ability to communicate
with adult consumers, or ban certain of our 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, natural disasters and conflicts; 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, and
limitations on the ability to repatriate funds; 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 and effectiveness of its data
privacy policies. PMI’s future profitability may also be adversely
affected should it be unsuccessful in its attempts to produce and
commercialize reduced-risk products or if regulation or taxation do not
differentiate between such products and cigarettes; 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. Future results are also subject to the lower predictability of
our reduced-risk product category’s performance.

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, 2019. 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.

###

Philip Morris International: Delivering a Smoke-Free Future

Philip Morris International (PMI) is leading a transformation in the
tobacco industry to create a smoke-free future and ultimately replace
cigarettes with smoke-free products to the benefit of adults who would
otherwise continue to smoke, society, the company and its shareholders.
PMI is a leading international tobacco company engaged in the
manufacture and sale of cigarettes, smoke-free products and associated
electronic devices and accessories, and other nicotine-containing
products in markets outside the U.S. PMI is building a future on a new
category of smoke-free products that, while not risk-free, are a much
better choice than continuing to smoke. Through multidisciplinary
capabilities in product development, state-of-the-art facilities and
scientific substantiation, PMI aims to ensure that its smoke-free
products meet adult consumer preferences and rigorous regulatory
requirements. PMI’s smoke-free IQOS product portfolio includes
heat-not-burn and nicotine-containing vapor products. As of March 31,
2019, PMI estimates that approximately 7.3 million adult smokers around
the world have already stopped smoking and switched to PMI’s
heat-not-burn product, which is currently available for sale in 47
markets in key cities or nationwide under the IQOS brand. For
more information, please visit www.pmi.com
and www.pmiscience.com.

Contacts

Investor Relations:
New York: +1 (917) 663 2233
Lausanne: +41
(0)58 242 4666
Email: [email protected]

Media:
Lausanne: +41 (0)58 242 4500
Email: [email protected]