Philip Morris Pakistan : Transmission of Annual Report for the year ended December 31 2023 Revised REVISED

Date: April 26, 2024

The General Manager

Pakistan Stock Exchange Limited

Stock Exchange Building

Stock Exchange Road

Karachi.

Subject: Transmission of Annual Report For The Year Ended December 31, 2023-Revised

Dear Sir,

This is with reference to the Annual Report ("the Report") of Philip Morris (Pakistan) Limited ('the Company') for the year ended December 31, 2023, transmitted on April 4, 2024. Following transmission, a few minor typos were identified in the text of the Report and the same have been corrected now.

It is clarified that there is no change in the financial statements of the Company. Please find attached herewith the revised Annual Report of the Company. The same is also available on the website of the Company.

Would appreciate your assistance in communicating this information to the TRE Certificate Holders of the Exchange.

Yours Sincerely,

Sana Enait Hashmi

Company Secretary

Philip Morris (Pakistan) Limited

Office 4 &5, 5th floor, Corporate Office Block, Dolmen City, Plot HC-3, Block 4, Clifton Karachi | Tel: [phone] - 01

Fax: [phone] | http://philipmorrispakistan.com.pk

Leading Transformation

Annual Report 2023

The best way to predict the future is to create it.

Peter Drucker

Table of

Contents

05 to 25 23 to 51

47 to 63

62 to

78

Who We Are	05
Key Milestones	07
10 facts about Philip Morris International	09
Geographical Footprint of PMI International	11
About Philip Morris (Pakistan ) Limited	13
Vision	15
Mission	16
PMI DNA	17
Philip Morris (Pakistan) Limited - Key Facts	19
Philip Morris (Pakistan) Limited - Footprint	21
Our Portfolio	23
We Care	25
Promoting Sustainability within the Office	33
We Are Better Together	35
We are Game Changers	41
Security & Market Safety	47

83 to 158

Awards and Achievements	51
Financial Highlights for Last Six Years	53
Corporate information	54
Message from the CEO and the Chairman
of the Board	55
Profiles of Board of Directors	57
Senior Management	62
Statement of Compliance	63
Independent Auditor's Review Report	66
Review Report by the Chairman on Board's
Overall Performance	67
Director's Report	69
Independent Auditor's Report	78
Statement of Financial Position	83
Statement of Profit or Loss and other
Comprehensive Income	84
Statement of Changes in Equity	85
Statement of Cash Flows	86
Notes to and Forming Part of the
Financial Statements	87
Pattern of Shareholding	133
Details of pattern of shareholding as per
requirements of code of corporate governance	135
Pattern of Shareholding - Preference shareholders	136
Notice of Annual General Meeting Philip Morris
Pakistan Limited	137
Subsidiary Company's Accounts: Laksonpremier
Tobacco Company (Private) Limited	140
Statement of Financial Position	141
Statement of Profit or Loss and other
Comprehensive Income	142
Statement of Changes in Equity	143
Statement of Cash Flows	144
Notes to and Forming Part of the
Financial Statements	145
Notice of Annual General Meeting Philip Morris
Pakistan Limited (Urdu)	149
Director's Report (Urdu)	158
Form of Proxy

Who We Are

A Story of

Philip Morris

International

Philip Morris International (PMI) is a leading international tobacco company working to deliver a smoke-free future and evolving its porolio for the long term to include the products outside of the tobacco and nicotine sector.

PMI's current product porolio primarily consists of cigarettes and smoke-free products. Since 2008, PMI has invested more than USD 10.5 billion to develop, scientifically substantiate, and commercialize innovative smoke-free products for adults who would otherwise continue to smoke, with the goal of completely ending the sale of cigarettes. In November 2022, PMI acquired Swedish Match - a leader in oral nicotine delivery - creating a global smoke-free champion led by the companies' IQOS and ZYN brands.

As of December 31, 2022, PMI's smoke-free products were available for sale in 73 markets, and PMI estimates that approximately 17.8 million adults around the world had already switched to IQOS and stopped smoking.

With a strong foundation and significant expertise in life sciences, PMI announced in February 2021 its ambition to expand into wellness and healthcare areas, and, through its Vectura Fertin Pharma subsidiary, PMI aims to enhance life through the delivery of seamless health experiences. PMI is carving the path for a smoke-free future with sustainability at the core of its transformation. The company is committed to serving as an agent of change and an advocate of positive values.

05 Annual Report 2023

Leading Transformation 06

	10 facts about
	Philip Morris International
	Unless otherwise stated, the figures are as of December 31, 2022
	79,800		39
		production facilities
	employees around the world	Two smoke-free product	worldwide
	(Figure includes Vectura Fertin	research facilities in
	Pharma, and Swedish Match)	Switzerland and
		Singapore
	Over 1,516	180	150	5
	research and development	million consumers
	worldwide.
	scientists, engineers, and	of the world's top 15
	technicians working on	markets where our		cigarette brands, including
	smoke-free products	products are sold.		Marlboro
	84		USD 35.1	738.2
	markets where our		billion net revenue.
	smoke-free products are sold.		billion units total shipment
	(as of December 31, 2023 ).		volume.
09	Annual Report 2023			Leading Transformation	10

Geographical Footprint

of PMI International

East Asia, Australia & PMI DF

SSEA (South & South East Asia), CIS (Commonwealth) of independent States) & MEA

Europe

Americas

11

Annual Report 2023

Leading Transformation

12

About Philip Morris (Pakistan ) Limited

Philip Morris (Pakistan) Limited (PMPKL/ "The Company"), listed on the Pakistan Stock Exchange, is an ailiate of Philip Morris International (PMI), a leading international tobacco company. PMI acquired Lakson Tobacco Company Limited as a majority shareholder. Lakson Tobacco Company was incorporated in Pakistan on February 10, 1969, as a public limited company under the Companies Act 1913 (now the Companies Act, 2017). The name of Lakson Tobacco was subsequently changed to Philip Morris (Pakistan) Limited on February 25, 2011. The principal activity of PMPKL is the manufacturing and sale of cigarettes, tobacco products, and other smoke-free products. The Company has one green leaf threshing plant in Mardan and one cigarette manufacturing factory in Sahiwal. PMPKL is one of the leading tobacco companies in Pakistan and holds a fair percentage of the tax-paid market share.

PMI is leading the transformation in the tobacco industry to create a smoke-free future and ultimately replace cigarettes with smoke-free products to the benefit of adult smokers who would otherwise continue to smoke. Sustainability is at the core of our transformation, which is based on a deep sense of purpose to create value for the shareholders and other stakeholders.

In 2016, PMI announced its vision of a smoke-free future and the ambition to accelerate the end of smoking. To achieve this, PMI is working to replace cigarettes with less harmful alternatives for the benefit of adults who would otherwise continue to smoke. PMI's smoke-free products which are addictive and not risk-free, do not involve burning, which is the main cause of smoking-related diseases, but have the nicotine and taste that can

satisfy adult smokers. In line with PMI's smoke-free vision, the Company also entered the multi-category product porolio with the introduction of SHIRO nicotine pouches in December 2022 which was morphed into ZYN in September 2023 and is available across key cities in Pakistan. In addition, the Company also introduced heated tobacco products and PMI's flagship heat-not-burn technology device IQOS, in Karachi, Lahore, and Islamabad in October 2023.

PMI understands that its business must become a provider of eective solutions. Innovation and inclusiveness are key to solving challenges, whether related to environmental sustainability, or equity. To accelerate the progress, it must position itself at the forefront of consumer-centricity, technology, science, and innovation. Aligned with PMI's sustainability vision, the Company has taken initiatives for the well-being of its employees and has also made investments in infrastructural improvements with a view to conserve the environment for future generations. In 2023, PMPKL exported 7.1 million kgs of tobacco which helped create employment and at the same time contributed towards the economic growth of the country.

We are committed to continue working towards a sustainable future for the greater good of society and our planet in general and to creating long-term value not only for our shareholders but for all of our stakeholders.

13 Annual Report 2023

Leading Transformation 14

OurVision

• Meet the expectations of adult smokers by offering innovative tobacco products of the highest quality available in their preferred price category.
• Generate superior returns to our stockholders.
• Be a responsible corporate citizen and to conduct our business with the highest degree of integrity.

15 Annual Report 2023

Our Mission

We are committed towards the continuous betterment of our employees by providing professional training emphasizing teamwork, a clean and safe working environment and leadership imbued with humility.

Leading Transformation 16