2011 Annual Report

While Marlboro is PMI’s flagship brand and one of the most recognized trademarks in the world, our position as the leading international tobacco company is also driven by a range of other powerful brands. In 2011, for example, global cigarette shipments of L&M – the second-largest brand in our portfolio – of 90.1 billion units exceeded the total market size of Italy. The strength of our other brands lies also in their diversity. Our second-largest premium brand, Parliament, has been growing at an annual compound rate of 6.3% since 2001. Mid-price brand Chesterfield is particularly successful in our European Union Region, where shipments grew by 8.5% in 2011. Our low-price brand, Bond Street, with its stronghold in Eastern Europe, has almost doubled its global shipment volume since 2001. Shipments of Lark, the ninth-largest brand in our portfolio, grew by an impressive 17.5% in 2011, driven by Japan.

The success of our international brands is matched by that of our local heritage brands, particularly in Asia, notably Fortune in the Philippines and Sampoerna A and Dji Sam Soe in Indonesia, our third-, eighth- and tenth-largest brands, respectively. Indeed, 2011 was a banner year for our entire portfolio, with every single one of our top ten brands recording shipment volume growth versus the previous year.