Philip Morris International Inc. (PMI) is a leading international tobacco company headquartered in Stamford, Connecticut. Founded in 1987, PMI became a public company listed on the New York Stock Exchange in March 2008. The company is focused on delivering a smoke-free future by developing and commercializing smoke-free products, while also maintaining a portfolio of traditional cigarette brands. PMI operates in approximately 175 markets worldwide.

PMI's smoke-free product portfolio includes heated tobacco products (such as IQOS), vapor products, and oral nicotine products. The company has invested heavily in research and development of these products, with a focus on scientific substantiation of reduced risk. PMI also acquired Swedish Match in 2022, a leader in oral nicotine products, further expanding its smoke-free portfolio.

In addition to its smoke-free focus, PMI maintains a diverse portfolio of cigarette brands, including Marlboro, Parliament, Chesterfield, L&M, and Philip Morris, as well as several local brands. The company faces competition from other major tobacco companies, as well as new market entrants in the smoke-free category. PMI is also subject to extensive regulation globally, including advertising restrictions, product standards, and taxation.

• Employees: Approximately 82,700 (as of December 31, 2023)
• Geographic Footprint: Operates in approximately 175 markets
• Headquarters: Stamford, Connecticut
• Founded: 1987
• Number of Manufacturing Facilities: 50 (as of December 31, 2023)
• Revenue: $35.2 billion (FY2023)
• Key Subsidiaries/Brands: Swedish Match, IQOS, Marlboro, Parliament, Chesterfield

• CEO: Jacek Olczak
• CFO: Emmanuel Babeau
• Board Chair: André Calantzopoulos
• Other Key Executives: Massimo Andolina (President, Europe Region), Werner Barth (President, Combustibles Category & Global Combustibles Marketing), Lars Dahlgren (President, Smoke-Free Oral Products & Chief Executive Officer Swedish Match), Frederic de Wilde (President, South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region), Reginaldo Dobrowolski (Vice President and Controller), Yann Guérin (Senior Vice President and General Counsel), Stacey Kennedy (President, Americas Region & CEO of PMI's U.S. Business), Paul Riley (President, East Asia, Australia, and PMI Duty Free Region), Stefano Volpetti (President, Smoke-Free Inhalable Products & Chief Consumer Officer)

• Annual Revenue: $35.2 billion (FY2023)
• Net Income: $7.8 billion (FY2023)
• Total Assets: $65.3 billion (FY2023)
• Key Financial Highlights: Net revenue increased by 10.7% in FY2023 compared to FY2022, driven by pricing, volume/mix, and the acquisition of Swedish Match. Diluted EPS decreased by 13.6% in FY2023 compared to FY2022.

PMI's product portfolio primarily consists of cigarettes and smoke-free products.

• Cigarettes: A wide range of premium, mid-price, and low-price brands, including Marlboro (the world's best-selling international cigarette), Parliament, Chesterfield, L&M, Philip Morris, and various local brands.
• Smoke-Free Products: Includes heated tobacco products (IQOS), vapor products (VEEV), and oral nicotine products (ZYN, snus).

As of December 31, 2023, PMI operates in the following segments:

• Europe
• South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa (SSEA, CIS & MEA)
• East Asia, Australia, and PMI Duty Free (EA, AU & PMI DF)
• Americas
• Swedish Match
• Wellness and Healthcare

Note: Starting in the first quarter of 2024, Swedish Match results will be integrated into the four geographical segments.

PMI's core strategy is to deliver a smoke-free future by focusing on the development and commercialization of smoke-free products. This includes significant investments in research and development, as well as strategic acquisitions like Swedish Match. The company aims to transition adult smokers away from cigarettes to scientifically substantiated reduced-risk products. PMI also seeks to expand beyond nicotine into wellness and healthcare through its Vectura Fertin Pharma business.

Key strategic initiatives include expanding the availability of smoke-free products in existing and new markets, continuing to scientifically substantiate the reduced-risk profile of its products, and advocating for appropriate regulatory frameworks. The company also prioritizes consumer engagement and digital communication to drive adult smoker switching.

PMI operates in the highly regulated tobacco industry. Key market trends include declining cigarette consumption due to health concerns, increased taxation, and stricter regulations. Major competitors include British American Tobacco p.l.c., Japan Tobacco Inc., and Imperial Brands plc, as well as new market entrants in the smoke-free category. The industry is also impacted by the illicit trade of tobacco products.

• Regulation of Reduced-Risk Products: Success depends on regulatory approvals and consumer acceptance of smoke-free products. Regulatory restrictions or bans could significantly impact the business.
• Competition: Intense competition from existing and new players in both the cigarette and smoke-free markets could affect market share and profitability.
• Decline in Cigarette Consumption: Declining cigarette sales in many markets pose a challenge to PMI's traditional business and require successful transition to smoke-free products.
• Impact of War in Ukraine: The ongoing conflict and related sanctions have and may continue to negatively affect PMI's operations and financial performance.
• Cybersecurity and Data Governance: Reliance on technology systems increases vulnerability to cyberattacks, which could disrupt operations and compromise sensitive data.