Philip Morris International 8K (Pmi) Reports | PM 21 Oct 10

2010 Third-Quarter

Earnings Results

October 21, 2010

Exhibit 99.3

Introduction

Unless

otherwise

stated,

will

talking

about

results

the

third

quarter 2010 and comparing them with the same period in 2009

References to PMI volumes refer to PMI shipment data, unless

otherwise stated

Industry volume and market shares are the latest data available from

a number of internal and external sources

Net revenues exclude excise taxes

Acquisitions, for the purposes of this presentation, also include our

business combination with Fortune Tobacco Corporation in the

Philippines

Organic volume refers to volume excluding acquisitions

Data tables showing adjustments to net revenues and Operating

Companies Income, or “OCI”, for currency, acquisitions, asset

impairment, exit and other costs, adjustments to EPS, free cash flow

calculations, and reconciliations to U.S. GAAP measures are at the

end of today’s web cast slides and are posted on our web site

Forward-Looking and Cautionary Statements

This presentation and related discussion contain statements that, to the

extent they do not relate strictly to historical or current facts, constitute

“forward-looking statements”

within the meaning of the Private Securities

Litigation Reform Act of 1995. Such forward-looking statements are

based on current plans, estimates and expectations, and are not

guarantees of future performance. They are based on management’s

expectations that involve a number of business risks and uncertainties,

any of which could cause actual results to differ materially from those

expressed in or implied by the forward-looking statements. PMI

undertakes no obligation to publicly update or revise any forward-looking

statements, except in the normal course of its public disclosure

obligations. The risks and uncertainties relating to the forward-looking

statements in this presentation include those described under Item 1A.

“Risk Factors”

in PMI’s Form 10-Q for the quarter ended June 30, 2010,

filed with the Securities and Exchange Commission.

Q3, 2010, Highlights

As anticipated, third quarter results adversely impacted by various

timing issues, in particular relating to Japan

Payback for the previously disclosed build-up of stocks at our

distributor in Japan during the second quarter this year

Difficult environment in Greece and Turkey, resulting from significant

tax increases that occurred earlier this year

Strong underlying business and market share performance

Good results for Marlboro, driven by the new architecture and

innovative line extensions

Marlboro

share higher or stable in the quarter across all four of our

Regions

Operating cash flow up more than 30% in the third quarter

Acceleration of share repurchase program in 2010

Dividend increased by 10.3% in September

Source: PMI Financials and PMI estimates

2010 EPS Guidance

We are raising and narrowing our reported diluted EPS

guidance for 2010 to a range of $3.90 to $3.95

This reflects an improved business performance, more

favorable exchange rates and a lower tax rate

This represents a reported diluted EPS growth of

approximately 20% to 22%, compared to the $3.24

achieved last year

This also represents a reported diluted EPS growth rate,

excluding currency, of approximately 16% to 18%,

compared to 14% to 17% projected previously

PMI Volume

Source: PMI Financials

Q3, 2010

(1.6)%

(10.5)

635.3

Organic Cigarette Volume

4.5 %

29.1

674.9

Cigarette Volume

YTD Sept, 2010

(2.9)%

(6.3)

213.0

Organic Cigarette Volume

4.5 %

9.9

229.2

Cigarette Volume

% Change

Variance

Results

(units billion)

PMI Financial Results

(a)

Excluding currency and acquisitions

Source: PMI Financials

3.6 %

(0.2)%

Net Revenues

YTD Sept, 2010

Results

(a)

Q3, 2010

Results

(a)

(% Change)

PMI Financial Results

(a)

Net

revenues

and

adjusted

OCI

exclude

currency

and

acquisitions.

Adjusted

diluted

EPS

excludes

currency.

(b)

OCI stands for Operating Companies Income, which is defined as operating income before general corporate expenses and the amortization of

intangibles. Q3 and YTD Sept, 2010, OCI growth rates are on an adjusted basis which excludes asset impairment, exit and other costs.

Source: PMI Financials

12.5 %

5.4 %

Adjusted Diluted EPS

4.5 %

(1.7)%

Adjusted

OCI

(b)

3.6 %

(0.2)%

Net Revenues

YTD Sept, 2010

Results

(a)

Q3, 2010

Results

(a)

(% Change)

Pricing

Recently implemented price increases in Argentina,

Indonesia, Italy, Japan, Russia and the UK

Announced a 30 Euro cent price increase in France, as

well as higher prices in Poland

Filed with the customs authorities for a price increase in

Portugal

Will substantially benefit in the fourth quarter from the

stock revaluation at our distributor in Japan

Expect our price variance to be significantly higher in the

fourth quarter this year than in the third quarter

PMI Business Momentum

Good market share momentum across all Regions:

PMI

and

Marlboro

0.2

points

Q3,

2010,

the

Region

PMI gained share year-on-year or sequentially in a wide range of

markets, including Algeria, Argentina, Egypt, Greece, Indonesia,

Korea, Mexico, the Netherlands, Poland, Russia, Serbia, Spain

and Turkey

Source: PMI Financials, PMI estimates and A.C. Nielsen

Marlboro

Architecture

Fresh Line

“Fresh taste sensations”

Gold Line

“Smooth taste and style”

Flavor Line

“Flavor enjoyment”

Marlboro

Market Shares: EU Region

Source: PMI estimates

Market Shares

0.2

18.2

18.4

Total EU Region

1.0

15.3

16.3

Spain

1.5

9.5

11.0

Poland

1.4

33.2

34.6

Netherlands

0.1

23.1

23.2

Italy

(2.1)

22.1

20.0

Greece

(0.7)

21.8

21.1

Germany

(0.5)

26.2

25.7

France

0.4 pp

24.2 %

24.6 %

Belgium

Variance

Q3, 2009

Q3, 2010

L&M

Market Shares: EU Region

Source: PMI estimates

(0.2)

6.6

6.4

Spain

Market Shares

0.6

5.7

6.3

Total EU Region

5.2

13.6

18.8

Slovakia

0.5

5.9

6.4

Portugal

1.4

14.6

16.0

Poland

1.7

7.0

8.7

Netherlands

4.5

0.6

5.1

Greece

0.9

8.3

9.2

Germany

0.3

7.3

7.6

Czech Rep.

0.7 pp

14.2 %

14.9 %

Belgium

Variance

Q3, 2009

Q3, 2010

Marlboro

Market Shares: EEMA, Asia and LA&C

QTD August

Source: PMI estimates, Japan Institute of Tobacco, Hankook Research and A.C. Nielsen

Market Shares

0.2

5.4

5.6

Ukraine

(a)

(1.6)

11.1

9.5

Turkey

0.4

8.7

9.1

Serbia

1.3

48.4

49.7

Mexico

0.9

6.0

6.9

Korea

0.4

10.6

11.0

Japan

1.2

4.9

6.1

Egypt

0.4

23.5

23.9

Argentina

8.7 pp

11.5 %

20.2 %

Algeria

Variance

Q3, 2009

Q3, 2010

EU Region

Industry volume down by 5.5% in Q3, 2010, driven by

declines in Greece, Poland and Spain

Source: PMI estimates

EU Region

Industry volume down by 5.5% in Q3, 2010, driven by

declines in Greece, Poland and Spain

PMI market share up 0.2 points in the quarter to 39.1%:

Source: PMI estimates

Market Shares

0.2

38.9

39.1

Total EU Region

0.6

32.1

32.7

Spain

1.5

36.1

37.6

Poland

3.1

42.4

45.5

Netherlands

(0.4)

54.5

54.1

Italy

(0.4)

35.3

34.9

Germany

(0.1)pp

40.1 %

40.0 %

France

Variance

Q3, 2009

Q3, 2010

Greece

PMI market share sequentially improving:

Expect Greek market to continue to act as a drag on our

regional profitability growth into the beginning of next

year, while discussions on structural changes to the

excise tax system continue

Source: PMI estimates

Market Shares

37.8

39.2

40.1

Total PMI

9.0

9.1

8.2

Other

0.4

4.0

5.1

L&M

6.7

6.8

Assos

21.7 %

19.3 %

20.0 %

Marlboro

Q1, 2010

Q2, 2010

Q3, 2010

Russia

Source: PMI Financials

PMI volume grew by 1.4% in Q3,

2010, to a record level of 25.4

billion units

Strong performance driven by:

Parliament

Chesterfield

Bond

Street

and

PMI implemented retail price

increases of two to three Rubles

per pack in July

Market stabilizing and consumer

downtrading continues to slow

Ukraine

Source: PMI estimates, A.C. Nielsen and PMI Financials

Industry volume in Q3, 2010,

down by around 15%, due to:

Trade purchases in June ahead

of tax increase

Market contraction due to

continuous price increases

Shares gains for premium

Marlboro

and mid-price

Chesterfield,

than

offset

share losses in low-price

segment

Pricing and mix improvement

enabled us to grow profitability

strongly in Q3, 2010

Turkey

Total market estimated to be down about 6% in Q3, 2010

PMI market share improving:

Source: PMI estimates and A.C. Nielsen

Market Shares

41.1

40.9

41.8

Total PMI

6.6

5.9

5.8

Other

12.2

13.3

13.5

Lark

5.2

5.7

5.8

Muratti

17.1 %

16.0 %

16.7 %

Marlboro / Parliament

Q1, 2010

Q2, 2010

Q3, 2010

PMI shipments down 3.5 billion units in Q3, 2010, while sales

by our distributor to the trade rose by 4.0 billion units

We estimate there was a build-up of stock of some ten days at

retail trade and three weeks with consumers

Consumer reaction to price increases uncertain:

Despite unprecedented price increases, cigarettes remain

relatively affordable and, therefore, we are optimistic that our

profitability will be enhanced going forward

Japan

Source: PMI Financials and Sojitz

(Marlboro,

Yen/pack)

New

Old

Variance

% Change

Retail Selling Price

440

320

120

37.5

Retail Margin

37.5

Consumption Tax

37.5

Excise Taxes

245

175

40.0

Price to Trade

130

33.0

Indonesia

Industry volume estimated to be up 3.9% in Q3, 2010

PMI shipment volume increased by 3.1% in Q3, 2010

Mild

temporarily

under

pressure

after

passing

the

IDR 10,000 / pack price point

PMI profitability grew at a double-digit rate in Q3, 2010

Source: PMI estimates, PMI Financials and A.C. Nielsen

0.6

5.1

5.7

Other

Market Shares

(0.2)

29.2

29.0

Total PMI

(0.1)

4.5

4.4

Marlboro

7.8

Dji

Sam Soe

(0.7)pp

11.8 %

11.1 %

Mild

Variance

Q3, 2009

Q3, 2010

Korea

PMI shipment volume increased by 9.7% in Q3, 2010

As elsewhere in the world, PMI continues to advocate for

adoption of system of regular, moderate excise tax

increases

Source: PMI Financials and Hankook Research

1.1

Lark

Market Shares

2.4

14.6

17.0

Total PMI

0.3

3.0

3.3

Virginia Slims

1.2

4.5

5.7

Parliament

0.9 pp

6.0 %

6.9 %

Marlboro

Variance

Q3, 2009

Q3, 2010

Latin America & Canada Region

Overall industry volume in key markets stable

Volume decline in Q3, 2010, of 1.7%

PMI and Marlboro

market share increased in both

Argentina and Mexico:

Excluding currency and acquisitions, OCI increased 2.2%

in Q3, 2010, driven by higher prices, partly offset by the

lower volumes and an unfavorable mix in Canada

Source: PMI Financials and PMI estimates

Market Shares

1.3

48.4

49.7

Mexico –

Marlboro

1.2

69.4

70.6

Mexico –

PMI

0.4

23.5

23.9

Argentina –

Marlboro

1.8 pp

73.3 %

75.1 %

Argentina –

PMI

Variance

Q3, 2009

Q3, 2010

Cash Flow

(a)

Free cash flow equals net cash provided by operating activities less capital expenditures

Source: PMI Financials

Operating Cash Flow

Free Cash Flow

(a)

($ million)

+30.9%

+33.6%

1,846

2,417

1,000

2,000

3,000

1,686

2,253

1,000

2,000

3,000

2009

2010

2009

2010

Cumulative Operating Cash Flow (2008-2010)

2008

2009

2010

($ billion)

Source: PMI Financials

Forecast

Results

YTD Sept

Full Year

6.6

7.9

7.3

7.9

7.8

21.7

23.7

7.9

March 2008

Actual

Shareholder Returns: Share Repurchases

$5 billion allocated for share repurchases for full year

2010, $1 billion above level originally foreseen

$1.1 billion spent in Q3, 2010, to purchase 20.7 million

$3.9 billion spent September YTD to purchase 78.5

million shares

Source: PMI Financials

Shareholder Returns: Dividends

Quarterly dividend increased in September by 10.3% to

$0.64 ($2.56 annualized)

Since March 2008 spin, dividend has been raised in total

by 39%

Dividend yield currently at 4.5%

Source: PMI Financials

Summary

(a)

Excluding China

Source: PMI Financials and PMI estimates

Strong business momentum going into Q4, 2010

2010 EPS guidance raised and narrowed to a reported diluted range

of $3.90 to $3.95, representing a growth rate of approximately 20% to

22% compared to 2009

Market leadership and growing volume and share in emerging

markets

(a)

Marlboro

performing well, with share up in the EU Region in the third

quarter, and up or stable in the other three Regions

Pricing power remains strong due to our brand leadership and broad

portfolio

Cost outlook improving

Share repurchases increased to $5 billion for full year 2010

Dividend raised by 10.3% in September

Questions & Answers

2010 Third-Quarter

Earnings Results

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries

Reconciliation of Non-GAAP Measures

Adjustments for the Impact of Currency and Acquisitions

For the Quarters Ended September 30,

($ in millions)

(Unaudited)

(1)

Represents the business combination in the Philippines

Reported Net

Revenues

Less

Excise

Taxes

Reported Net

Revenues

excluding

Excise Taxes

Less

Currency

Reported Net

Revenues

excluding

Excise Taxes

& Currency

Less

Acquisi-

tions

Reported Net

Revenues

excluding

Excise Taxes,

Currency &

Acquisitions

Reported

Net

Revenues

Less

Excise

Taxes

Reported Net

Revenues

excluding

Excise Taxes

Reported

excluding

Currency

Reported

excluding

Currency &

Acquisitions

7,045

4,906

2,139

(226)

2,365

European Union

7,783

5,375

2,408

(11.2)%

(1.8)%

4,184

2,288

1,896

(37)

1,933

1,904

EEMA

3,722

1,892

1,830

3.6%

5.6%

4.0%

3,629

1,796

1,833

1,734

146

(1)

1,588

Asia

3,170

1,519

1,651

11.0%

5.0%

(3.8)%

2,078

1,332

746

720

Latin America & Canada

1,898

1,200

698

6.9%

3.2%

16,936

10,322

6,614

(138)

6,752

175

6,577

PMI Total

16,573

9,986

6,587

0.4%

2.5%

(0.2)%

Reported

Operating

Companies

Income

Less

Currency

Reported

Operating

Companies

Income

excluding

Currency

Less

Acquisi-

tions

Reported

Operating

Companies

Income

excluding

Currency &

Acquisitions

Reported

Operating

Companies

Income

Reported

excluding

Currency

Reported

excluding

Currency &

Acquisitions

1,113

(106)

1,219

European Union

1,267

(12.2)%

(3.8)%

856

824

815

EEMA

761

12.5%

8.3%

7.1%

690

611

(1)

575

Asia

653

5.7%

(6.4)%

(11.9)%

244

229

(2)

231

Latin America & Canada

226

8.0%

1.3%

2.2%

2,903

2,883

2,840

PMI Total

2,907

(0.1)%

(0.8)%

(2.3)%

2010

2009

% Change in Reported Operating

Companies Income

2010

2009

% Change in Reported Net Revenues

excluding Excise Taxes

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries

Reconciliation of Non-GAAP Measures

Reconciliation of Reported Operating Companies Income to Adjusted Operating Companies Income &

Reconciliation of Adjusted Operating Companies Income Margin, excluding Currency and Acquisitions

For the Quarters Ended September 30,

($ in millions)

(Unaudited)

(1)

Represents the business combination in the Philippines

(2)

For the calculation of net revenues excluding excise taxes, currency and acquisitions refer to previous slide

Reported

Operating

Companies

Income

Less

Asset

Impairment &

Exit Costs

Adjusted

Operating

Companies

Income

Less

Currency

Adjusted

Operating

Companies

Income

excluding

Currency

Less

Acquisi-

tions

Adjusted

Operating

Companies

Income

excluding

Currency &

Acquisitions

Reported

Operating

Companies

Income

Less

Asset

Impairment &

Exit Costs

Adjusted

Operating

Companies

Income

Adjusted

excluding

Currency

Adjusted

excluding

Currency &

Acquisitions

1,113

(20)

1,133

(106)

1,239

European Union

1,267

(1)

1,268

(10.6)%

(2.3)%

856

824

815

EEMA

761

12.5%

8.3%

7.1%

690

611

(1)

575

Asia

653

5.7%

(6.4)%

(11.9)%

244

229

(2)

231

Latin America & Canada

226

8.0%

1.3%

2.2%

2,903

(20)

2,923

2,903

2,860

PMI Total

2,907

(1)

2,908

0.5%

(0.2)%

(1.7)%

% Points Change

Adjusted

Operating

Companies

Income

excluding

Currency

Net Revenues

excluding

Excise Taxes

& Currency

(2)

Adjusted

Operating

Companies

Income

Margin

excluding

Currency

Adjusted

Operating

Companies

Income

excluding

Currency &

Acquisitions

Net Revenues

excluding

Excise Taxes,

Currency &

Acquisitions

(2)

Adjusted

Operating

Companies

Income

Margin

excluding

Currency &

Acquisitions

Adjusted

Operating

Companies

Income

Net Revenues

excluding

Excise

Taxes

(2)

Adjusted

Operating

Companies

Income

Margin

Adjusted

Operating

Companies

Income

Margin

excluding

Currency

Adjusted

Operating

Companies

Income

Margin

excluding

Currency &

Acquisitions

1,239

2,365

52.4%

1,239

2,365

52.4%

European Union

1,268

2,408

52.7%

(0.3)

824

1,933

42.6%

815

1,904

42.8%

EEMA

761

1,830

41.6%

1.0

1.2

611

1,734

35.2%

575

1,588

36.2%

Asia

653

1,651

39.6%

(4.4)

(3.4)

229

720

31.8%

231

720

32.1%

Latin America & Canada

226

698

32.4%

(0.6)

(0.3)

2,903

6,752

43.0%

2,860

6,577

43.5%

PMI Total

2,908

6,587

44.1%

(1.1)

(0.6)

% Change in Adjusted Operating

Companies Income

2009

2010

2009

2010

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries

Reconciliation of Non-GAAP Measures

Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS and Adjusted Diluted EPS, excluding Currency

For the Quarters Ended September 30,

(Unaudited)

2010

2009

% Change

Reported Diluted EPS

0.99

0.93

6.5%

Adjustments:

Asset impairment and exit costs

0.01

Adjusted Diluted EPS

1.00

0.93

7.5%

Less:

Currency Impact

0.02

Adjusted Diluted EPS, excluding Currency

0.98

0.93

5.4%

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries

Reconciliation of Non-GAAP Measures

Adjustments for the Impact of Currency and Acquisitions

For the Nine Months Ended September 30,

($ in millions)

(Unaudited)

(1)

Represents the business combination in the Philippines

Reported Net

Revenues

Less

Excise

Taxes

Reported Net

Revenues

excluding

Excise Taxes

Less

Currency

Reported Net

Revenues

excluding

Excise Taxes

& Currency

Less

Acquisi-

tions

Reported Net

Revenues

excluding

Excise Taxes,

Currency &

Acquisitions

Reported

Net

Revenues

Less

Excise

Taxes

Reported Net

Revenues

excluding

Excise Taxes

Reported

excluding

Currency

Reported

excluding

Currency &

Acquisitions

21,053

14,435

6,618

(6)

6,624

6,621

European Union

20,988

14,313

6,675

(0.9)%

(0.8)%

11,665

6,134

5,531

105

5,426

5,346

EEMA

9,953

5,031

4,922

12.4%

10.2%

8.6%

11,094

5,265

5,829

484

5,345

377

(1)

4,968

Asia

8,974

4,160

4,814

21.1%

11.0%

3.2%

6,094

3,901

2,193

151

2,042

Latin America & Canada

5,157

3,250

1,907

15.0%

7.1%

49,906

29,735

20,171

734

19,437

460

18,977

PMI Total

45,072

26,754

18,318

10.1%

6.1%

3.6%

Reported

Operating

Companies

Income

Less

Currency

Reported

Operating

Companies

Income

excluding

Currency

Less

Acquisi-

tions

Reported

Operating

Companies

Income

excluding

Currency &

Acquisitions

Reported

Operating

Companies

Income

Reported

excluding

Currency

Reported

excluding

Currency &

Acquisitions

3,280

(81)

3,361

3,359

European Union

3,397

(3.4)%

(1.1)%

2,412

2,338

2,310

EEMA

1,982

21.7%

18.0%

16.5%

2,259

263

1,996

(1)

1,933

Asia

1,933

16.9%

3.3%

699

630

(2)

632

Latin America & Canada

452

54.6%

39.4%

39.8%

8,650

325

8,325

8,234

PMI Total

7,764

11.4%

7.2%

6.1%

2010

2009

% Change in Reported Operating

Companies Income

2010

2009

% Change in Reported Net Revenues

excluding Excise Taxes

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries

Reconciliation of Non-GAAP Measures

Reconciliation of Reported Operating Companies Income to Adjusted Operating Companies Income &

Reconciliation of Adjusted Operating Companies Income Margin, excluding Currency and Acquisitions

For the Nine Months Ended September 30,

($ in millions)

(Unaudited)

(1)

Represents the business combination in the Philippines

(2)

Represents 2009 Colombian investment and cooperation agreement charge

(3)

For the calculation of net revenues excluding excise taxes, currency and acquisitions refer to previous slide

Reported

Operating

Companies

Income

Less

Asset

Impairment &

Exit Costs

Adjusted

Operating

Companies

Income

Less

Currency

Adjusted

Operating

Companies

Income

excluding

Currency

Less

Acquisi-

tions

Adjusted

Operating

Companies

Income

excluding

Currency &

Acquisitions

Reported

Operating

Companies

Income

Less

Asset

Impairment,

Exit Costs &

Other

Adjusted

Operating

Companies

Income

Adjusted

excluding

Currency

Adjusted

excluding

Currency &

Acquisitions

3,280

(20)

3,300

(81)

3,381

3,379

European Union

3,397

(3)

3,400

(2.9)%

(0.6)%

2,412

2,338

2,310

EEMA

1,982

21.7%

18.0%

16.5%

2,259

263

1,996

(1)

1,933

Asia

1,933

16.9%

3.3%

699

630

(2)

632

Latin America & Canada

452

(135)

(2)

587

19.1%

7.3%

7.7%

8,650

(20)

8,670

325

8,345

8,254

PMI Total

7,764

(138)

7,902

9.7%

5.6%

4.5%

% Points Change

Adjusted

Operating

Companies

Income

excluding

Currency

Net Revenues

excluding

Excise Taxes

& Currency

(3)

Adjusted

Operating

Companies

Income

Margin

excluding

Currency

Adjusted

Operating

Companies

Income

excluding

Currency &

Acquisitions

Net Revenues

excluding

Excise Taxes,

Currency &

Acquisitions

(3)

Adjusted

Operating

Companies

Income

Margin

excluding

Currency &

Acquisitions

Adjusted

Operating

Companies

Income

Net Revenue

excluding

Excise

Taxes

(3)

Adjusted

Operating

Companies

Income

Margin

Adjusted

Operating

Companies

Income

Margin

excluding

Currency

Adjusted

Operating

Companies

Income

Margin

excluding

Currency &

Acquisitions

3,381

6,624

51.0%

3,379

6,621

51.0%

European Union

3,400

6,675

50.9%

0.1

2,338

5,426

43.1%

2,310

5,346

43.2%

EEMA

1,982

4,922

40.3%

2.8

2.9

1,996

5,345

37.3%

1,933

4,968

38.9%

Asia

1,933

4,814

40.2%

(2.9)

(1.3)

630

2,042

30.9%

632

2,042

31.0%

Latin America & Canada

587

1,907

30.8%

0.1

0.2

8,345

19,437

42.9%

8,254

18,977

43.5%

PMI Total

7,902

18,318

43.1%

(0.2)

0.4

2009

2010

2009

2010

% Change in Adjusted Operating

Companies Income

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries

Reconciliation of Non-GAAP Measures

Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS and Adjusted Diluted EPS, excluding Currency

For the Nine Months Ended September 30,

(Unaudited)

2010

2009

% Change

Reported Diluted EPS

2.96

2.44

21.3%

Adjustments:

Colombian investment and cooperation agreement charge

0.04

Tax items

(0.07)

Asset impairment and exit costs

0.01

Adjusted Diluted EPS

2.90

2.48

16.9%

Less:

Currency Impact

0.11

Adjusted Diluted EPS, excluding Currency

2.79

2.48

12.5%

PHILIP MORRIS INTERNATIONAL INC. and Subsidiaries

Reconciliation of Non-GAAP Measures

Reconciliation

Operating

Cash

Flow

Free

Cash

Flow

and

Free

Cash

Flow,

excluding

Currency

Reconciliation of Operating Cash Flow to Operating Cash Flow, excluding Currency

For the Quarters Ended September 30,

($ in millions)

(Unaudited)

(1) Operating Cash Flow

For the Quarters Ended

September 30,

2010

2009

% Change

Net

cash

provided

operating

activities

(a)

2,417

1,846

30.9%

Less:

Capital expenditures

164

160

Free cash flow

2,253

1,686

33.6%

Less:

Currency impact

(232)

Free cash flow, excluding Currency

2,485

1,686

47.4%

For the Quarters Ended

September 30,

2010

2009

% Change

Net

cash

provided

operating

activities

(a)

2,417

1,846

30.9%

Less:

Currency impact

(234)

Net cash provided by operating activities,

excluding Currency

2,651

1,846

43.6%

2010 Third-Quarter

Earnings Results

October 21, 2010

Philip Morris International (PM) 8-KPhilip Morris International Inc. (Pmi) Reports