Shipment volume of heated tobacco units increased to 125.3 billion units, a 14.7% increase year-over-year, while cigarette shipment volume decreased by 1.4%.

PMI will have the full rights to commercialize IQOS in the U.S. after April 30, 2024, following the end of the commercial relationship with Altria.

In January 2023, PMI reorganized its operations into four geographical segments: Europe; South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa; East Asia, Australia, and PMI Duty Free; and Americas.

PMI is focused on transforming its culture and ways of working to become a consumer-centric business, attracting and retaining diverse talent with the right skills.

PMI aims to maintain a minimum of 40% female representation in management positions globally, and at least 35% of senior positions held by women globally by 2025.

PMI is integrating the Swedish Match business into its existing regional segment structure, and will update its segment reporting in the first quarter of 2024.

Regulatory initiatives aimed at reducing the use of tobacco and nicotine products could lead to a significant decrease in demand for PMI's brands.

The war in Ukraine may lead to supply chain disruptions, inhibit PMI's ability to source materials, and impact PMI's operations in the region and globally.

PMI is significantly dependent on its and third-party information technology networks and systems, and a cybersecurity incident or attack may adversely impact its business and operations.

PMI competes primarily on the basis of product quality, brand recognition, brand loyalty, taste, R&D, innovation, packaging, customer service, marketing, advertising and retail price.

PMI faces competition from British American Tobacco, Japan Tobacco, Imperial Brands, new market entrants, and several regional and local tobacco companies.

PMI's competitive position can be influenced by weak economic conditions, erosion of consumer confidence, competitors' introduction of lower-price products or innovative products, higher product taxes, and product regulation.

PMI is prioritizing the management of land and water resources and utilizing a geographically diversified sourcing strategy for agricultural products to increase the resilience of its production systems and minimize operational risks.

PMI purchases tobacco leaf from various types, grades, and styles throughout the world, mostly through independent international tobacco suppliers. In 2023, direct sourcing from farmers represented approximately 18% of PMI's global leaf requirements.

PMI purchases a wide variety of direct materials from approximately 360 suppliers, with the top ten suppliers representing approximately 60% of total direct material purchases.

PMI has invested $12.5 billion since 2008 to develop, scientifically substantiate and commercialize innovative smoke-free products.

PMI is focused on developing products that present less risk of harm to adult smokers who switch to reduced-risk products versus continued cigarette smoking.

PMI has a range of RRPs in various stages of development, scientific assessment, and commercialization, including heated tobacco, e-vapor, and oral nicotine products.

PMI suspended its three-year share repurchase program following the recommended public offer to acquire the outstanding shares of Swedish Match.

PMI's principal sources of funds, including funds to make payment on its debt securities, are from the receipt of dividends and repayment of debt from its subsidiaries.

PMI's principal wholly owned and majority-owned subsidiaries are not limited by long-term debt or other agreements in their ability to pay cash dividends or to make other distributions that are otherwise compliant with law.

PMI closely monitors regulatory developments related to sustainability and implements initiatives addressing PMI's priorities in line with its sustainability strategy.

PMI has specific programs across its business units designed to meet applicable environmental compliance requirements and reduce its carbon footprint, wastage, as well as water and energy consumption.

PMI conducts a global water risk assessment annually in tobacco-growing regions to identify potential hotspots for physical water risks that require adaptation measures.

As a company with global operations in a heavily regulated industry, PMI is subject to multiple laws and regulations of the jurisdictions in which it operates.

The regulatory landscape related to sustainability matters is rapidly evolving, and PMI closely monitors these developments and implements initiatives addressing PMI's priorities in line with its sustainability strategy.

Tightened climate-related regulation may lead to additional carbon taxation or energy price increases impacting PMI's cost of operation.