Philip Morris International Announces EU Economic Footprint Study 2021-2025: Transformation Made in Europe

At a defining moment for Europe’s competitiveness, Philip Morris International Inc. (PMI) (NYSE: PM) today publishes the second edition of its EU Economic Footprint Study, prepared by EY-Parthenon.

Spanning 2021 to 2025, the study demonstrates the scale of PMI’s contribution across the European Union and the capabilities developed through its transformation. The company’s footprint reaches far beyond its own operations, supporting suppliers, manufacturers, researchers, retailers, farmers, employees, and communities across Europe.

Five key figures from the EU Economic Footprint Study 2021-2025:

• Nearly €343 billion in total contribution to the EU economy between 2021 and 2025.
• €22.3 billion in spending with European suppliers and €27.4 billion invested across PMI's European operations, strengthening industrial capacity and supply-chain resilience.
• €39.5 billion in exports, reinforcing Europe’s position as a manufacturing and export hub.
• Around 164,000 jobs supported in 2025, including nearly 22,500 direct jobs and employment across suppliers and the wider economy.
• €422 million invested in R&D across Europe, complemented by approximately €2.2 billion in R&D activities in Switzerland, building scientific and innovation capabilities for the future.

“Europe is navigating a period of profound change that creates opportunities to rethink, adapt, and choose the future we want to build.This study provides fresh evidence of the contribution our business continues to make across the European Union. Behind the billions of economic value there are people. Farmers, manufacturers, scientists, entrepreneurs, retailers and employees whose work strengthens Europe’s economic foundation every day. Our own transformation is reflected in these results. In the fourth quarter of 2025, more than half of our net revenues in Europe came from smoke-free products:in Europe, Smoke-Free Future is Smoke-Free Present. The task now is to turn our strengths into lasting competitiveness. This requires pragmatism, constructive engagement between policymakers and industry, and a regulatory framework that gives businesses the confidence to invest, innovate, and scale. We have made our choice about the part of history we want to be on: we choose to be among the solutions that will define New Europe and help shape a future built to last,” said Marco Hannapel, President, Europe Region, Philip Morris International.

The findings underscore how PMI’s sustained investment, innovation and industrial footprint are strengthening Europe’s competitiveness while creating long-term value for its economies and communities.

Philip Morris International: A Global Smoke-Free Champion

Philip Morris International is a leading international consumer goods company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, nicotine pouch and e-vapor products. Our smoke-free products are available for sale in over 105 markets, and as of December 31, 2025, PMI estimates they were used by over 43 million legal-age consumers around the world, many of whom have moved away from cigarettes or significantly reduced their consumption. The smoke-free business accounted for approximately 42% of PMI’s second-quarter 2026 total net revenues. Since 2008, PMI has invested over $16 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for legal age adults who would otherwise smoke or use other nicotine-containing consumer products, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. Following a robust science-based review, the U.S. Food and Drug Administration has authorized the marketing of Swedish Match’s General snus, ZYN nicotine pouches and versions of PMI’s IQOS devices and consumables - the first-ever such authorizations in their respective categories. Versions of IQOS devices and consumables, General snus and 20 ZYN nicotine pouch variants also obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA in their respective categories. With a strong foundation and significant expertise in life sciences, PMI has a long-term ambition to expand into wellness areas. References to “PMI”, “we”, “our” and “us” mean Philip Morris International Inc., and its subsidiaries. For more information, please visit www.pmi.com and www.pmiscience.com.

Forward-Looking and Cautionary Statements

This release contains projections of future results and goals and other forward-looking statements, including statements regarding expected financial or operational performance; capital allocation plans; investment strategies; regulatory outcomes; market expectations; business plans and strategies. Achievement of future results is subject to risks, uncertainties and inaccurate assumptions. In the event that risks or uncertainties materialize, or underlying assumptions prove inaccurate, actual results could vary materially from those contained in such forward-looking statements. Pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, PMI is identifying important factors that, individually or in the aggregate, could cause actual results and outcomes to differ materially from those contained in any forward-looking statements made by PMI.

PMI's business risks include: marketing and regulatory restrictions that could reduce our competitiveness, disrupt our SFP commercialization efforts, eliminate our ability to communicate with adult consumers, or ban certain of our products in certain markets or countries; excise tax increases and discriminatory tax structures; health concerns relating to the use of tobacco and other nicotine-containing products; litigation related to tobacco and/or nicotine products and intellectual property rights; intense competition; inability to anticipate changes in adult consumer preferences; use and reliance on third-parties; the adverse effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; geopolitical instability; the impact and consequences of Russia's invasion of Ukraine; changes in legal-age smoker behavior; continued decline of tax-paid cigarettes; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations, sustained periods of elevated inflation, and limitations on the ability to repatriate funds; adverse changes in applicable corporate tax laws; disruptions in the credit markets or changes to its credit ratings; recent and potential future tariffs imposed by the U.S. and other countries; adverse changes in the cost, availability, and quality of tobacco and other agricultural products and raw materials, as well as product components for its electronic devices; and the integrity of its information systems and effectiveness of its data privacy policies. PMI's future profitability may also be adversely affected should it be unsuccessful, in key markets or systemically, in its efforts to introduce, commercialize, and grow smoke-free products or if regulation or taxation do not differentiate between such products and cigarettes; if it is unable to successfully introduce new products, and promote brand equity; if there are prolonged disruptions of facilities used to produce its products; if it is unable to enter new markets or improve its margins through increased prices and productivity gains; if other market participants are more successful in their SFP commercialization efforts; if it is unable to attract and retain the best global talent; or if it is unable to successfully integrate and realize the expected benefits from recent transactions and acquisitions. Future results are also subject to the lower predictability of our smoke-free products performance.

PMI is further subject to other risks detailed from time to time in its publicly filed documents, including PMI's Annual Report on Form 10-K for the fourth quarter and year ended December 31, 2025, and the Quarterly Report on Form 10-Q for the second quarter ended June 30, 2026. PMI cautions that the foregoing list of important factors is not a complete discussion of all potential risks and uncertainties. PMI does not undertake to update any forward-looking statement that it may make from time to time, except in the normal course of its public disclosure obligations.

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