Philip Morris (PM) official guidance

In dollar terms, we now forecast a currency tailwind of around $0.15 at prevailing rates.

Translating into an adjusted diluted EPS range of $8.26 to $8.41, an increase of 9.5% to +11.5%.

We target adjusted diluted EPS of $2.20 to $2.25, including an unfavorable currency impact of $0.08 at prevailing exchange rate.

For 2026, we continue to target organic net revenue growth of +5% to +7%, organic operating income growth of +7% to +9%, and currency neutral adjusted diluted EPS growth of +7.5% to +9.5%.

For Q3, specifically, we expect HTU shipment volume of around 41 billion units against a strong Q3 2025, when HTU shipment grew by 15.5%. We, thus, expect mid-single-digit international smoke-free organic net revenue and gross profit growth.

We continue to expect operating cash flow generation of around $13.5 billion, providing further flexibility to support both investment and continued attractive shareholder return.

For 2026, we continue to target organic net revenue growth of +5% to +7%, organic operating income growth of +7% to +9%, and currency neutral adjusted diluted EPS growth of +7.5% to +9.5%.

As implied in our full year forecast, we expect to deliver organic operating income margin expansion for the full year.

For PMI overall, we forecast mid-single digit Q3 organic top line growth with modest organic margin expansion.

For Q3, specifically, we expect HTU shipment volume of around 41 billion units against a strong Q3 2025, when HTU shipment grew by 15.5%. We, thus, expect mid-single-digit international smoke-free organic net revenue and gross profit growth.

For 2026, we continue to target organic net revenue growth of +5% to +7%, organic operating income growth of +7% to +9%, and currency neutral adjusted diluted EPS growth of +7.5% to +9.5%.

For PMI overall, we forecast mid-single digit Q3 organic top line growth with modest organic margin expansion.

While we expect some moderation in H2 due to timing factors and annualization, we now forecast a pricing variance of more than 7% for the full year.

For Q3, specifically, we expect HTU shipment volume of around 41 billion units against a strong Q3 2025, when HTU shipment grew by 15.5%.

Taken together, we now expect total shipment volume to be around stable to slightly positive for the full year, with high single-digit growth in smoke-free product broadly offsetting the decline in cigarettes.

Taken together, we now expect total shipment volume to be around stable to slightly positive for the full year, with high single-digit growth in smoke-free product broadly offsetting the decline in cigarettes.

•Full-year amortization of acquired intangibles of $0.50 per share;

•Capital expenditures of $1.4 to $1.6 billion, predominantly supporting the smoke-free business;

•An effective tax rate, excluding discrete tax events, of around 21.5%;

Reported diluted EPS is forecast to be in a range of $7.19 to $7.34, at prevailing exchange rates.

| Adjusted Diluted EPS, excluding currency | $8.11 | - | $8.26 | $ 7.54 | 7.5% | - | 9.5% |

•Further net debt to adjusted EBITDA ratio improvement as we target a ratio of close to 2.0x by the end of 2026, at prevailing exchange rates;

•Broadly stable net financing costs;

•No share repurchases; and

•Broadly stable to slightly growing (previously broadly stable) total PMI cigarette and SFP shipment volume, with high-single digit SFP shipment volume growth, and a cigarette shipment volume decline of 2% to 3% (previously around 3%);

•Broadly stable to slightly growing (previously broadly stable) total PMI cigarette and SFP shipment volume, with high-single digit SFP shipment volume growth, and a cigarette shipment volume decline of 2% to 3% (previously around 3%);

For the second quarter, we expect continued strong performance from our international business and a sequential improvement in growth with HTU shipment volume of 40 billion-42 billion, slower HTU adjusted IMS growth due to the short-term impact of excise-driven pricing in Japan, and a low single-digit cigarette shipment volume decline.

We forecast adjusted diluted EPS of $2.02-$2.07, including a higher effective tax rate and a favorable currency variance of $0.02 at prevailing rates.

We expect mid-single-digit organic net revenue growth and solid operating income progression despite another quarter of strong commercial investment.

We expect mid-single-digit organic net revenue growth and solid operating income progression despite another quarter of strong commercial investment.

For the second quarter, we expect continued strong performance from our international business and a sequential improvement in growth with HTU shipment volume of 40 billion-42 billion, slower HTU adjusted IMS growth due to the short-term impact of excise-driven pricing in Japan, and a low single-digit cigarette shipment volume decline.

Our base expectation is that ZYN shipments should broadly track offtake growth in future quarters against the estimated underlying 2025 basis provided in February of approximately 180 million cans in Q2, 205 million cans in Q3, and 200 million cans in Q4.

Our base expectation is that ZYN shipments should broadly track offtake growth in future quarters against the estimated underlying 2025 basis provided in February of approximately 180 million cans in Q2, 205 million cans in Q3, and 200 million cans in Q4.

Our base expectation is that ZYN shipments should broadly track offtake growth in future quarters against the estimated underlying 2025 basis provided in February of approximately 180 million cans in Q2, 205 million cans in Q3, and 200 million cans in Q4.

For the second quarter, we expect continued strong performance from our international business and a sequential improvement in growth with HTU shipment volume of 40 billion-42 billion, slower HTU adjusted IMS growth due to the short-term impact of excise-driven pricing in Japan, and a low single-digit cigarette shipment volume decline.

•An estimated industry volume decline of around 2% for cigarettes and HTUs, excluding China and the U.S.;

Both shipments and adjusted IMS volumes are projected to grow in a high single digit after factoring in the headwinds from Japan excise taxes and U.S. ZYN inventory comparisons described earlier.

We target smoke-free product shipment and Adjusted IMS volume growth of high single-digit to low teens.

We anticipate capital expenditures of approximately $1.3-$1.5 billion per annum on average, with the potential for lower amounts beyond 2026, and the lion's share of investments again focus on smoke-free products.

For the three-year period to 2028, we continue to target compound annual growth rates of 6%-8% in organic net revenues, 8%-10% in organic operating income as margins expand, and 9%-11% in adjusted diluted EPS at constant currency.

We expect further improvements in 2026, targeting close to the 2x by year-end at prevailing exchange rates, providing increased flexibility for capital allocation.

Over the next three years, we target aggregate operating cash flow of around $45 billion at prevailing exchange rates.

For the three-year period to 2028, we continue to target compound annual growth rates of 6%-8% in organic net revenues, 8%-10% in organic operating income as margins expand, and 9%-11% in adjusted diluted EPS at constant currency.

A higher quarter of investment globally behind our smoke-free due to phasing, we anticipate broadly flat year-on-year first-quarter organic net revenue and operating income.

For the three-year period to 2028, we continue to target compound annual growth rates of 6%-8% in organic net revenues, 8%-10% in organic operating income as margins expand, and 9%-11% in adjusted diluted EPS at constant currency.

A higher quarter of investment globally behind our smoke-free due to phasing, we anticipate broadly flat year-on-year first-quarter organic net revenue and operating income.

We expect first-quarter combustible volumes to decline by up to 5% as we lap a prior year quarter of volume growth, whilst having the highest expected impact of the dynamics in Turkey, India, and Mexico, which I mentioned for the full year.

We target smoke-free product shipment and Adjusted IMS volume growth of high single-digit to low teens.

•First quarter adjusted diluted EPS of $1.80 to $1.85, including an estimated favorable currency impact of 14 cents at prevailing exchange rates.

•An estimated total international industry volume decline of around 2% for cigarettes and HTUs, excluding China and the U.S.;

This Q4 HTU forecast includes modestly lower channel inventory and a reversal of around 2 billion units, due to timing impact with HTU shipment growth thus broadly in line with our plus 10 to plus 12 adjusted IMS growth forecast for 2025 overall.

The 2025 forecast includes an adjusted effective tax rate of around 22% for the year based on the latest assessment of tax dynamic and market. Mix.

We are raising our adjusted diluted earnings per share forecast to the mid to upper end of our previous currency neutral growth range at plus 12 to plus 13.5%, which translate into plus 13.5% to plus 15.1% in dollar term.

We are raising our adjusted diluted earnings per share forecast to the mid to upper end of our previous currency neutral growth range at plus 12 to plus 13.5%, which translate into plus 13.5% to plus 15.1% in dollar term.

We anticipate a 20 million to 30 million can inventory reduction in the coming months, this impact being effectively delayed from Q3 given strong September promotional activity.

In addition, we are upgrading our full year operating cash flow forecast to more than $11.5 billion at prevailing exchange rate subject to year-end working capital requirement.

We expect another year of double-digit organic operating income progression, where we now forecast plus 10 to plus 11.5% growth for the year including the same factor as net revenues.

We expect this growth to drive strong adjusted OI margin expansion to land firmly back above 40%.

We continue to forecast organic net revenue growth of plus six to plus 8%, driven by positive volumes smoke remix and pricing.

Smoke reshipment growth is more likely to be in the lower half of this range, factoring in the potential inventory adjustments for ZYN I described, and expected IQOS HTU shipments of close to 38 billion units in Q4.

This starts with shipments, where we continue to target total PMI growth of around plus 1%. Our fifth consecutive year of volume growth including a cigarette decline of around 2%, smoke-free volume growth of plus 12 to plus 14%.

When it comes to combustible, and it's still 50% plus of the group, we expect to be again between 3% to 4% decline in volume, so nothing has changed in our vision of H2.

This starts with shipments, where we continue to target total PMI growth of around plus 1%. Our fifth consecutive year of volume growth including a cigarette decline of around 2%, smoke-free volume growth of plus 12 to plus 14%.

This starts with shipments, where we continue to target total PMI growth of around plus 1%.

•Full-year amortization of acquired intangibles of $0.50 per share, including the amortization of IQOS commercialization rights in the U.S. related to the agreement to end our commercial relationship with Altria Group, Inc. covering IQOS in the U.S.;

•Capital expenditures of around $1.6 billion, almost entirely due to investments supporting the smoke-free business;

•An effective tax rate, excluding discrete tax events, of around 22%;

| Adjusted Diluted EPS | $7.46 | - | $7.56 | $ 6.57 | 13.5% | - | 15.1% |

Reported diluted EPS is forecast to be in a range of $7.39 to $7.49, at prevailing exchange rates, versus reported diluted EPS of $4.52 in 2024.

| Adjusted Diluted EPS, excluding currency | $7.36 | - | $7.46 | $ 6.57 | 12.0% | - | 13.5% |

•An estimated total international industry volume decline of around 1% for cigarettes and HTUs, excluding China and the U.S.;

•Net revenue growth of around 6% to 8% on an organic basis;

•No share repurchases in 2025.