Philip Morris International (PM) 21st Annual dbAccess Global Consumer Conference summary

2024 performance outlook and financial guidance

• Strong H1 2024 results driven by robust organic growth in revenue and adjusted EPS before Forex impact, with continued solid Q2 expected.

• Smoke-free portfolio, especially IQOS and ZYN, is accelerating momentum and financial performance.

• Adjusted EPS growth before Forex is guided at 9%-11%, with reported growth revised upward due to easing Forex headwinds; full-year adjusted diluted EPS guidance is $6.26–$6.38, and reported diluted EPS is $5.77–$5.89.

• ZYN US volume target for 2024 is around 560 million cans, with current plant capacity expansion and a new manufacturing site planned for 2025.

• Combustible business remains resilient, with strong pricing power and volume stability in key markets.

Product and market development

• IQOS continues to grow in established markets like Japan and is gaining traction in Western and emerging markets such as Germany, Spain, Egypt, Indonesia, and Mexico.

• ILUMA launch in Japan boosted market share due to improved user experience and innovative consumables.

• ZYN is experiencing rapid growth in the US, with supply constraints being addressed through capacity expansion and a new manufacturing site.

• Nicotine pouches like ZYN are seen as a new, less risky way to consume nicotine, with potential to reach 10-20% of the US nicotine market.

• Oral tobacco heritage helps ZYN adoption but is not essential for market success.

Strategic and capital allocation priorities

• Focus remains on leveraging the combustible business to finance the transition to smoke-free products.

• Share buybacks are considered when within net debt/EBITDA targets and absent major acquisitions.

• No large M&A is currently planned; organic growth is the main priority.

• Strategic review of the cigar business is ongoing, with future direction to be determined.

• PMI continues to invest in smoke-free transformation and brand portfolio expansion.